Commercial Investment Opportunity
REAE 5311 - REAL ESTATE ANALYLIS
3320 W. Davis St
Total Space Available: 1,088 SF
Rental Rate: $15 /SF/Year
Property Type: Retail
Property Sub-type: Drive-in Restaurant Center
Lot Size: 23,184 SF
Zoning: Community retail
Executive Summary
This commercial property is conveniently located near the booming Bishop Arts District in Dallas, TX. Recently remodeled, this drive-in restaurant is in a prime location. It sits on 3 lots near a busy intersection with established businesses.
Investment Highlights
Investment Highlights
n
Located between two and three miles from downtown Dallas
n
This
restaurant is within three miles of the Trinity River Corridor which
would include a green space bigger than Central Park
in NYC , a chain of lakes, recreational and ecological attractions, and
transportation improvements in the southern sector of town. Total cost of the project is about $2
billion.
n
Property at 3320 W. Davis is located in the City of Dallas Davis Garden Tax Increment Financing (TIF) District. It is located south of I-30, adjacent to the Fort Worth TIF District, and approximately 4.0 miles southwest of downtown Dallas. The District was created in 2007 to to enhance the real estate market and encourage new investment by providing a source of funding for public amenities and infrastructure improvements in the neighborhood located between downtown and Pinnacle Park. Area TIF projects include Stevens Park Golf Course, Kessler Theater, Rosemont Elementary and Twelve Hills Nature Center.
n Recently Remodeled - This restaurant consists of one building totaling approximately 1088 square feet and is situated on three lots totaling approximately 23,184 square feet. The three lots provide plenty of room for future expansion. The building is brand new inside, with new floors, new electrical and plumbing. Two addition restrooms have been added to the out door patio and an addition back room has been added for a future Bar area since Oak cliff has recently voted to sell Beer and Wine and is no longer a dry area. The parking lot has been newly ashphalted and there is minimal landscaping that is mature and well maintained.
Land Appraisal
2012
Certified Values
|
|
Improvement:
Land: Market Value: |
$12,500
+ $81,140 =$93,640 |
SITE MAP
Market Analysis
100% urban population.
Males: 34,265 (50.7%)
Females: 33,300 (49.3%)
Estimated
median house/condo value in 2010: $97,634
75211:
|
$97,634
|
$127,400
|
Median resident age:
This zip
code:
|
28.6 years
|
33.5 years
|
Average
household size:
This zip
code:
|
3.4 people
|
2.8 people
|
Percentage of
family households:
This zip
code:
|
65.9%
|
56.9%
|
Comps
Financial Analysis
This property is listed at an
asking price of $450,000, cap rate of 9.3%, and an actual NOI of $32,256.
Owner may Finance with 20% down at 7% interest. This property currently is leased out in a lease for $3500.00 a month and has 2 years remaining. Owner pays no expenses except property taxes.
Cash Flow Analysis - 3320 W. Davis
PGI- Potential Gross Income(Rent $3500 mo.) $42,000
OI - Other Income $ 0
(VCL) Vacancy & Collection Losses ($ 1,680)
EGI -Effective Gross Income $40,320
(OE) Operating Expenses (taxes) ($3,000)
NOI - Net Operating Income $37,320
(Debt Service) ($29,771)
BTCF- Before Tax Cash Flow ($7,549)
Cap Rate 10.5
Property taxes
$3,000
Purchase Price
$400,000
LTV
0.8
ETV
0.2
Loan Terms
Annual
Matures (Length)
20
Interest Rate
7.00%
Loan Amount
320,000.00
