1205 Texas Star Parkway, Euless, Texas 76040
Property Overview:
Dallas Fort Worth International Airport is the 4th busiest airport in the US and the 8th busiest in the world, so any industrial property near it usually commands strong interest.
Texas Star is just that… an older (constructed in 1984) multi-tenant four building industrial flexible property comprising 78,423 square foot of gross lettable area on 4.69 acres.
Acquired at $50.56 per square foot, this is a substantial discount compared with Riverview and Powerhouse that were both bought at >$70 per square foot..
The property is expected to provide strong immediate cash flow as it is 92% leased as at purchase date.
Property / Financial Information:
Disclaimer: Information provided about forecast annual net cash flow and cash on cash returns are derived from unaudited financial projections. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties, assumptions and other important factors, many of which are beyond the control of the Responsible Entity. The Responsible Entity cannot and does not give any assurance that the results, performance or achievements expressed or implied by the forward-looking statements will actually occur and investors are cautioned not to place undue reliance on these forward-looking statements.
| Acquisition date | 16 July 2014 |
| Contract purchase price | $3,965,000 |
| Original listed price | $4,190,000 |
| Discount to listing price | $225,000 |
| Independently appraised price | $4,000,000 |
| Estimated insurance replacement cost | $5,879,333 |
| Occupancy at purchase date | 93% | Appraisal date and appraiser | 13 June 2014 Butler Burgher Group |
| Finance terms | All cash |
| Gross Building Area | 78,423 sq ft (7,285 sq mtrs) |
| Land size | 204,296 sq ft (18,979 sq mtrs) |
| At purchase estimated net operating income | $324,735 |
| At purchase estimated cap rate | 8.19% |
| At purchase estimated cash on cash return | 8.19% |
Further Notes:
Currency: All numbers are shown in USD. Returns shown have not been translated into Australian dollars as the exchange rate varies. A AUD:USD exchange rate below AUD1:USD1 will increase the percentage return. A AUD:USD exchange rate in excess of AUD1:USD1 will decrease the return.
Management costs: Returns shown above include US management costs, but exclude the management fee charged by the Responsible Entity (1.98% per annum of Gross Assets).
Returns: Returns prior to the property being stabilized are expected to be lower than those forecast above as once off due diligence costs are absorbed, and as less income is received from vacancies as at purchase date. Unless otherwise noted, properties are expected to be stabilized within 12 months of acquisition.
Aerial Picture:
More information on key terms:
| Estimated insurance replacement cost: | The estimated cost to rebuild the property in the event of a total loss. The number is calculated via discussions with a independent insurance broker and considers the age and construction type / quality of the building. |
| Net operating income: | Operating income – operating expenses |
| Capitalization rate: | (Net operating income ÷ Purchase price) × 100 |
| Cash on Cash return: | (Annual cash back ÷ Cash down) × 100 |
| At purchase capitalization rate: | Using unaudited management forecasts, the estimated capitalization rate at purchase date. |
| At purchase cash on cash return: | Using unaudited management forecasts, the estimated cash on cash return at purchase date. |
