absolute net lease investment opportunity

ABSOLUTE NET LEASE INVESTMENT OPPORTUNITY
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Two Infill Land Tracts Near Love Field Airport
30.232 Acres of Airport Parking
Two 30-Year Leases to The City of Dallas
Absolute Net Structure - Minimal Landlord Responsibilities
INTRODUCTION
SITE 2
Location
6814 Harry Hines
6333 Denton Drive
Land Size
13.44 Acres
16.79 Acres
Tenant
City of Dallas
City of Dallas
Lease Term (A)
30 Years
30 Years
Annual Base Rent
Call for Information
Call for Information
ABSOLUTE NET LEASES
Both leases are structured on absolute net leases, minimizing ownership management
responsibilities.
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CASH FLOW
In aggregate, the two leases generate potentially $152.2 Million in cash flow through
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Tenant’s base rent obligation.
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SURROUNDING DEVELOPMENT
In the immediate vicinity of the project, there are over 3,000 multifamily units under
construction or planned. Additionally, there are plans for two hotels and 150,000 SF
of office, located adjacent to the site.
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Dallas Love
Field
QUANTIFIABLE EXIT STRATEGY
The leases were structured with Tenant purchase rights at fixed prices that are
available to tenant annually beginning in the 6th lease year of each lease.
REAL ESTATE
The leases are backed by two extremely well located, infill sites in the heart of the
Love Field airport market along Mockingbird Lane and Medical Corridor along Harry
Hines Boulevard.
LLWAY
(A) Tenant has purchase options on both leases commencing month 60
ORTH TO
INVESTMENT GRADE TENANCY
The City of Dallas is the Tenant on both sites; which has recent AA rated bond issues.
SITE 1
DALLAS N
INVESTMENT HIGHLIGHTS
PROJECT & LEASE SUMMARY
INWOOD ROAD
Stream Realty Partners is pleased to exclusively offer to qualified investors the
opportunity to acquire a ONE-OF-A-KIND, 30-year absolute net leased investment
with a AA rated municipal entity as Tenant. The Property consists of two land
sites located at 6814 Harry Hines & 6333 Denton Drive in Dallas, Texas, totaling
approximately 30.2 acres of land. Due to the Property’s close proximity to Dallas’
Love Field Airport, The City of Dallas (“Tenant”) has leased the sites in order to
expand automotive parking operations at Love Field Airport. Both of the leases
are structured on 30-year, absolute net leases with periodic fixed Tenant purchase
options commencing in the 5th year of lease term.
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Preston Center
Uptown Dallas
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SITE 2
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SITE 1
6814 HARRY HINES BLVD
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Uptown Dallas
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Park Cities
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Love Field Airport
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Children’s Medical Center
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West Love – Office, Retail, Multifamily
Development
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UT Southwestern Medical Center –
Student Housing
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UTSouthwestern Medical Center –
Center for BrainHealth
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UT Southwestern Medical Center –
North Campus
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UT Southwestern Medical Center - William P. Clements Jr. University Hospital
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Dallas Market Center / Infomart
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UT Southwestern Medical Center –
West Campus
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Southern Methodist University
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UT Southwestern Medical Center –
South Campus
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Proposed Greenway Development
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Parkland Hospital
OVERVIEW AND FACTS
CITY OF DALLAS HIGHLIGHTS
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The city has realized four consecutive years of tax base gains reflecting new
development and a robust real estate market.
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Operating revenues are diverse, comprised of property taxes (42%), sales
taxes (23%), service charges (17%), and franchise fees (13%).
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The city’s August 2015 unemployment rate of 3.9% is below Texas (4.4%) and
the U.S. average of 5.2% for the same period.
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The City of Dallas has approximately 13,000 employees, with an annual
budget of $3.0 billion for the fiscal year ending in September 2016.
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Property values in the City of Dallas are anticipated to be $100.32 billion in
2016, projecting $799.5 million in annual property tax revenue for the City.
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Of the City’s $3.0 billion budget, $2.392 billion will be allocated to operations
such as Public Safety, Culture and Arts, Aviation, and Debt Service. The
remaining $704 million will be allocated to capital projects in the city.
LOVE FIELD AIRPORT
MEDICAL CORRIDOR OVERVIEW AND FACTS
Owned and operated by the City of Dallas, Dallas Love Field airport is located in
The Dallas Medical District stretches more than 1,000 acres attracting nearly 2.6
the heart of Dallas, seven miles northwest of the downtown central business district
million patient visits a year, tallying more than 2,000 licensed beds and greater than
and is managed by the City’s Department of Aviation. Dallas Love Field handles
29,000 employees across numerous facilities, the most recognizable being Children’s
both commercial airline and corporate user needs, serving in excess of 8 million
Medical Center, Parkland Hospital and the UT Southwestern Medical Center. Services
passengers a year. The airport has a $3.4 billion impact on the regional economy,
range from pediatric preventive care and geriatric services to life-saving emergency
and it directly contributes $1 billion in revenue annually.
care and heart transplants. The District location is loosely defined by Mockingbird
Lane (to the north), Medical District Drive (to the South), the Stemmons Freeway/
Interstate 35 (to the West), and Maple Avenue (to the east).
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INVESTMENT SALES TEAM
TERMS AND CONDITIONS
Jamie Jennings
OFFERING PACKAGE
Managing Director
Seller is seeking bids for its fee simple interest in Dallas Love Field Land
214.267.0452
jjennings@streamrealty.com
TERMS
All cash; as-is, where-is.
James Mantzuranis
Senior Associate
SUBMIT OFFER TO
214.267.0494
Jamie Jennings or James Mantzuranis
jmantzuranis@streamrealty.com
Stream Realty Partners, L.P. 2001 Ross Avenue
Caitlin Clinton
Suite 2800
Senior Financial Analyst
Dallas, Texas 75201
214.267.0431
caitlin.clinton@streamrealty.com
Facsimile: (214) 210-1452 or (214) 210-1415
jjennings@streamrealty.com
MARKET EXPERT
Jason Moser
Senior Vice President
214.267.0451
jmoser@streamrealty.com
jmantzuranis@streamrealty.com
COMPANY INFORMATION
Please provide a complete acquisition history/resume.
FINANCING DISCLOSURE
Please provide evidence of funding, both equity and debt, if appropriate.
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