Investment Overview

Marcus & Millichap is pleased to present the fee simple ownership of 2010 Cinema Drive located in Hudson Oaks, Texas. This was a 2019 built-to-suit for an Urban Air Adventure Park Facility which is a full-service entertainment facility and the world’s largest indoor adventure park chain. Urban Air Adventure Park was founded in 2011 and currently has over 300 locations in 40 states throughout the US and has plans to open new locations internationally: Asia, Europe, & South America. Urban Air provides a variety of high-octane activities from trampolining and rock climbing to the best indoor playgrounds, all under one roof. In 2021, Urban Air saw approximately 23 million guests and the average annual revenue per unit comes out to be approximately $3.5MM. This is a business model that has proven to be internet proof and will continue to be in demand from children & families who need to seek activity after-school and on the weekends. Along with daily passes, families can purchase yearly memberships which is a predictable recurring revenue stream for the local franchisee running the operations. The subject property consists of 35,000 SF and sits on a 3.61-acre parcel that includes an out-parcel of 1.026 acres. This tenant just extended for a fresh 15-year term which now takes the primary lease expiration date to 5/31/2039. Furthermore, the tenant had 5 years of lease term remaining before executing this long-term commitment to the site. In our view, this long-term lease extension is a clear indication of the franchisee’s current and expected future success operationally. The lease is structured as triple net (“NNN”) which extinguishes close to all landlord responsibilities. Beginning on 6/1/2028, there will be a 3% increase in the base rent and this 3% increase will occur every other year thereafter. The subject property is located in a pocket that has been exploding with new commercial developments and surrounded by a plethora of national retailers such as Walmart Supercenter, McDonalds, H-E-B, Walgreens, Auto Zone, & Starbucks. It is situated right off the heavily trafficked I-20 which sees more than 67,000 VPD. Hudson Oaks is an emerging market with over 223,000 people in a 15-mile radius & average household income of $121,756 in a 3-mile radius. The subject property will also serve surrounding suburbs such as Aledo, Weatherford, Mineral Wells, Granbury, and Stephenville. Hudson Oaks is located in Parker County and is 23 miles directly west from downtown Fort Worth, Texas. Parker County is the 5th fastest growing county in the state of Texas and the 9th fastest growing county in the United States. Fort Worth’s population is approximately 935,000 and has grown by 71% since 2000. Texas continues to attract people because there is no-state income tax, no corporate income tax, and has been recognized as the #1 state for business for 18 consecutive years according to Chief Executive Magazine. More specifically, Texas leads the nation in being home to 55, Fortune 500 companies due to its business-friendly regulations.