Westwood Business Park

Dallas, Texas

Investment Overview

Avistone’s newest investment property offering is a 227,709 square-foot, multi-tenant flex/industrial park located near Dallas, Texas. The property represents an opportunity to invest in a 12-building, 17.78-acre business park in the dynamic Farmers Branch suburb of Dallas, just 14 miles from downtown Dallas and 12 miles from Dallas/Fort Worth International Airport. The investment property is within close proximity of I-35E, I-635 and the President George Bush Turnpike, with direct access to densely populated residential and in-fill industrial and office parks, and is one block from the $1 billion, 370-acre multi-family, residential and commercial Mercer Crossing West development currently under construction. The property is currently 75% leased to 21 tenants with a weighted average length of tenancy of more than 3.89 years. No single industry represents more than 12% of the rent roll and no individual tenant occupies more than 8% of the total space.

Investment Terms

  • Acquisition Price: $21,300,000
  • Equity Raise: See Offering Materials
  • Minimum LLC Investment: $50,000
  • Preferred Return: 8%(4)
  • Estimated Hold Period: 3-5 Years
  • Projected Yield: See Offering Materials
  • Projected IRR: See Offering Materials
  • Available for 1031 Exchange: Yes

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Exterior at Westwood Business Park, Avistone's newest investment property offering.

Investment Strategy

The business plan is to operate the property efficiently, distribute any available cash flow monthly to investors (expected to commence upon reaching stabilization) and create value by increasing occupancy and rental rates over the next several years given the strength of the region’s commercial real estate market, in particular, demand for flex/industrial, office and retail space. We believe the existing rental rates at the property – which now average $8.25/square foot on an NNN equivalent basis – are under market, which according to CBRE, average $13.30/square foot for flex product in the greater South Stemmons market area.(1) We believe a successful execution of our plan will ultimately enhance the property’s net operating income and create the potential for property value appreciation over a 3- to 5-year anticipated investment holding period, although there is no assurance objectives will be realized.

Investment Highlights

  • Location

Westwood Business Park is strategically located within a short commuting distance to Dallas/Fort Worth International Airport, Dallas Love Field and the Dallas central business district, with convenient access to I-35E, I-635 and the President George Bush Turnpike.

  • Strong Employment Base

The property is within the South Stemmons submarket of the Stemmons Corridor. The Stemmons Corridor has the largest employment base of any area in Dallas with more than 5,000 businesses employing nearly 170,000 people, contributing 20% of Dallas’ tax base. Major industries represented in the area include service, wholesale trade, retail trade, manufacturing, finance, insurance, real estate, transportation, communication, utilities and construction.

  • Growth

Forbes recently ranked the Dallas-Plano-Irving, Texas metropolitan area the 3rd fastest-growing city in the U.S. in terms of population, employment, wages and economic output.(2)   This growth is reinforced by the development of Mercer Crossing West, a $1 billion, 370-acre multi-family, residential and commercial project currently under construction just one block from Westwood Business Park. When complete, the mixed-use development will include two hotels, 3500 multi-family units, 800 single-family home sites, and 180,000 square feet of commercial space.

  • Market Presence and Expertise

The asset will be managed by Avistone Management, LLC, which currently manages two similar properties in the Dallas market representing nearly 300,000 of flex/industrial space.

Property Details

Square Footage 227,709 SF
Land Area 17.78 Acres
Buildings 12
Units 35
Occupancy 75% (21 tenants)(3)
Space Layout 97.2% Office / 2.8% Warehouse
Year Built 1984 – 1996
Construction Concrete tilt wall with brick fascia
Clear Height 14′

Dallas Market Highlights

The greater Dallas area is estimated to be the 4th most populated metro in the United States and ranks #1 nationally in population growth, 4th in economy and 3rd in the most Fortune 500 headquarters. Although Dallas features a diversified economy with a high concentration in trade, transportation and services, as well as being one of the least expensive major American city in which to operate a business, it is also the 7th largest metro in terms of the concentration of high-tech jobs. (Sources: Forbes, KPMG, Dallas Chamber)

Avistone’s Track Record

With a portfolio of 19 high-occupancy properties representing more than 2.5 million square feet of flex/industrial space in California, Texas, Georgia, Florida and Ohio, Avistone excels in acquiring and operating stabilized multi-tenant flex/industrial properties that deliver investors in-place cash flow for distribution and the potential for capital appreciation from increased rents and net operating income, although there is no assurance these objectives will be realized. To date, Avistone has provided its investors an average annual cash distribution of greater than 8.0%. (9)

To learn more, an investment summary and full offering documents are now available to accredited investors 

Download Investment Summary


Disclaimers:
1) CBRE
2) https://www.forbes.com/sites/samanthasharf/2018/02/28/full-list-americas-fastest-growing-cities-2018/#7c8291b67feb
3) Occupancy as of 6/1/18. In Year 1, approximately 12% of leases are due for renewal.
4) The Members will be entitled to receive a preferred return in an amount equal to an 8% cumulative but not compounded annual return on their Net Capital Contributions. The preferred return is paid from cash flow from operations or sale subject to available cash flow
5) The DISCLAIMERS AND LIMITATIONS: This message is intended solely for accredited investors as such is defined in the Securities Act, and is not intended as an offer to sell, or the solicitation of an offer to buy any securities or ownership interests. Past or projected performance does not guarantee or predict future results; all projections and estimates contained herein are subject to change any time without notice. This investment opportunity may not be available in all states. All information contained herein is in summary form, does not purport to be all-inclusive or contain all the information or risk factors a prospective investor needs to evaluate the potential investment opportunity contained herein. Any such evaluation must be considered in conjunction with the final Private Placement Memorandum (the “PPM”); the information contained herein is qualified in its entirety by such and all prospective investors are strongly encouraged to read all “risk factors” in the PPM. Further, some of the initial information provided above contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve numerous risks and uncertainties, and investors should not rely on them as predictions of future events. Avistone reserves to the right to withdraw this investment opportunity at any time for any reason without liability to any party. Investments in private securities contain a high degree of risk and often have long hold periods. They are illiquid and may result in the loss of principal. Avistone’s strategy may not occur due to numerous external influencers.
6) Commercial real estate contains risk and positive outcomes are not assured.
7) 
Security transactions administered by WealthForge Securities, LLC, member FINRA | SIPC. WealthForge Securities and Avistone are not affiliated.
8) This page contains forward-looking statements that involve risks and uncertainties. These statements are only predictions and are not guarantees. Actual events and results of operations could differ materially from those expressed or implied in the forward-looking statements. Forward-looking statements are typically identified by the use of terms such as “may,” “will,” “should,” “expect,” “could,” “intend,” “anticipate,” “plan,” “estimate,” “believe,” “potential,” or the negative of such terms or other comparable terminology. The forward-looking statements included herein are based upon Avistone’s current expectations, plans, estimates, assumptions and beliefs that involve numerous risks and uncertainties. Although Avistone believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, the Property’s actual results may differ significantly from the results discussed in the forward-looking statements. Factors that might cause such differences include, but are not limited to, assumptions pertaining to leasing rates, reimbursements, market vacancy, tenant rollover and retention percentages, capitalization rates and other assumptions which may be inaccurate. Prospective Purchasers of Interests are cautioned not to place undue reliance on any forward-looking statements contained herein. The actual results of the Project may differ significantly from the results discussed in the forward-looking statements.
9) Past performance may not be indicative of future results; there is no assurance that objectives will be met.
10) IMPORTANT NOTICE: The accompanying email transmission is a privileged and confidential communication and is intended to be viewed and read only by the intended recipient. If you are not the intended recipient or its authorized agent, you are prohibited from reading this transmission, and the dissemination, distribution, or copying of this transmission to or by person[s] other than the intended recipient is prohibited. If you have received this communication in error, please notify us immediately by telephone and destroy the original transmission.
11) Diversification does not guarantee returns or protect against loss.