OFFERING SUMMARY. Dallas, Texas

Transcription

1 OFFERING SUMMARY Dallas, Texas

2 INVESTMENT SUMMARY HFF, L.P. has been exclusively retained by the Owner to offer qualified investors the opportunity to purchase Crosspoint Atrium (the Property ), a 227,891 square foot office building located at the major intersection of Central Expressway and LBJ Freeway in Dallas, Texas. The Owner, Credit Union of Texas, occupies 113,348 square feet at the building and is in the process of relocating 88,289 square feet of this space to a new facility. Upon successful relocation, the Property will be 39.4% leased creating a unique value-add opportunity for an investor to acquire an institutionally maintained asset in a highly visible location at an appealing basis. Crosspoint Atrium s investment profile creates the rare opportunity to execute a demonstrable value-add business plan with an infill asset in one of the healthiest office markets in the United States. 2

3 PROPERTY OVERVIEW Address: Building Size: % Leased: 39.4% Stories: 8 Year Built: LBJ Freeway Dallas, Texas ,891 rentable square feet Land Area: Parking: Parking Ratio: 3.4 acres 739 total spaces 492 covered spaces / 247 surface spaces 3.2/1,000 SF TENANCY SUMMARY Tenant Square Feet % of Property Lease Expiration Remaining Lease Term* % Below Market Fair Lease 22, % Dec years 0.0% Girling Health Care 8, % May years 36.7% Spectracorp Technologies Group 8, % Mar years 20.6% America s 401K 7, % Mar years 32.3% Matthews, Stein, Shiels Law Firm 7, % Oct years 41.4% Credit Union of Texas Bank Branch 2, % Dec years 0.0% Others 32, % Varies 2.2 years 36.9% Totals/Averages 89, % 3.9 years 22.8% *As of Sep

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5 INVESTMENT HIGHLIGHTS COSMETIC REPOSITIONING OPPORTUNITY With $2.4 million spent on mechanicals (elevators, HVAC, restrooms, generators, life safety) over the last 5 years, the building is well positioned with minimal deferred maintenance allowing the next owner to focus on cosmetic upgrades that will drive leasing velocity. VALUE ADD OPPORTUNITY The Property is 39.4% leased with in-place rents 22.8% below market, providing the ability to add substantial value through the lease up of vacant space and mark-to-market opportunities. SUBSTANTIAL DISCOUNT TO REPLACEMENT COST Crosspoint Atrium offers investors the opportunity to acquire a well-maintained asset at a significant discount to replacement cost. This will also allow for investors to exit the asset at a discount to projected replacement cost, enhancing liquidity upon sale. ATTRACTIVE AMENITY BASE The Property offers prospective tenants an attractive amenity base featuring a deli, technology-equipped conference center, and a Credit Union of Texas bank branch. NORTH DALLAS LOCATION WITH EXCELLENT ACCESSIBILITY The Property benefits from a strong location at the intersection of Central Expressway and LBJ Freeway offering unmatched visibility and signage opportunities, drawing prospective tenants from numerous residential areas including Preston Hollow, Lake Highlands, and Richardson. 5

6 LN. Y. JOSEY LN. WEBB CHAPEL RD. KELLER SPRINGS RD. BELT LINE RD. Brookhaven Country Club VALLEY VIEW LN. ROYAL LN. H LN. MARSH LN. AY RD. NORTHHAVEN RD. MIDWAY RD. Addison Airport SPRING VALLEY RD. VALLEY VIEW LN. FOREST LN. DALLAS NORTH TOLLWAY Dallas Galleria INWOOD RD. Celestial Park Prestonwood Town Center Bent Tree Residential LOWER TOLLWAY LEASING MOMENTUM Valley View Center PRESTON RD. Bert Fields Park Northwood Country Club ROYAL LN. BELT LINE RD. ALPHA RD. ARAPAHO RD. HILLCREST RD. HILLCREST AVE. Preston Hollow MEANDERING WAY FOREST LN. Medical City J.J. Pearce High School COIT RD. COIT RD. Richardson High School Cottonwood Park SPRING VALLEY RD. MAHAM RD. WATERVIEW DR. ROYAL LN. Texas Instruments World Headquarters GREENVILLE AVE. Lak MARKET LEASING MOMENTUM For a number of years, infrastructure improvements limited the accessibility and performance of the LBJ office submarket. The completion of the LBJ Freeway expansion at the end of 2015 combined with tightening of the neighboring Uptown, Preston Center, and Lower Tollway submarkets has translated into a significant increase in demand for the East LBJ submarket. This jump in user demand has resulted in a 30.9% increase in office submarket rental rates, with further growth on the horizon as tenants continue to relocate to the submarket. Over the same period, office occupancy in the submarket has increased by 7.0% with net absorption of over 700,000 square feet. The East LBJ office submarket is poised to grow even further as tenants continue to choose it as a lower cost alternative with unmatched access in a central location at the intersection of two dominant Dallas thoroughfares. WALNUT HILL LN. WALNUT HILL LN. HARRY HINES BLVD. LOMBARDY LN. WEBB CHAPEL RD. MARSH LN. MIDWAY RD. W. NORTHWEST HWY. PRESTON CENTER LEASING MOMENTUM W. NORTHWEST HWY. NorthPark Center E. NORTHWEST HWY. ABRAMS RD. SKILLMA OW IRVING BLVD. STEMMONS FWY. MOCKINGBIRD LN. 6 Bachman Lake CANADA DR. LEMMON AVE. Dallas Love Field HARRY HINES BLVD. LOVERS LN. INWOOD RD. MAPLE AVE. Childrens Medical Center INWOOD RD. LEMMON AVE. WYCLIFF AVE. DALLAS NORTH TOLLWAY OAK LAWN AVE. Riverschon Park PRESTON RD. LOVERS LN. University Park MOCKINGBIRD LN. Dallas Country Club Highland Park CBD FITZHUGH AVE. HALL ST. Uptown PEARL ST. HILLCREST AVE. Southern Methodist University M Streets ROSS AVE. LIVE OAK ST. GASTON AVE. HASKELL AVE. GREENVILLE AVE. UPTOWN LEASING MOMENTUM Baylor Medical Center MUNGER BLVD. FITZHUGH AVE. SKILLMAN ST. RICHMOND AVE. 30 LOVERS LN. ABRAMS RD. LA VISTA DR. LINDSLEY AVE. MOCKINGBIRD LN Lakewood Lakewood Country Club GRAND AVE. Samuell Park R.L. THORNTON

7 EXCEPTIONAL SUBMARKET MOMENTUM EAST LBJ OFFICE OCCUPANCY & RENTAL RATES LBJ Express Completed in % Increase in Rental Rates Since 4Q % Increase in Occupancy Since 4Q % 78.0% 76.0% 74.0% 72.0% 700,000+ SF Net Absorption 70.0% $16.00 Since 4Q 2014 $ % 30.9% Rental Rate Growth YTD $24.00 $23.00 $22.00 $21.00 $20.00 $19.00 $18.00 $

8 DOMINANT HIGH-ACTIVITY LOCATION Demand is surging at the Central Expressway and LBJ Freeway intersection as tenants migrate from Uptown and Preston Center, and the area continues to strengthen with significant retail, residential, and commercial-use development: PRESTON HOLLOW VILLAGE Dynamic 42-acre mixed-use development anchored by Trader Joe s with retail, office, 100 town homes, and 1,100 multi-family units Preston Hollow Village THE HILL New creative retail development totaling 215,000 SF with destination-class tenancy and a unique shopping environment SHOPS AT PARK LANE Major mixed-use development with 550,000 SF of retail and 570 multi-family units NORTHWOOD COUNTRY CLUB Premier Dallas club that is home to some of the wealthiest leaders in the city. Features a brand-new 18-hole golf course, 16 tennis courts, and a resort-style pool and bar 8 CREST AT PARK CENTRAL Recently delivered 387-unit Class A multifamily development located immediately south of Crosspoint Atrium The Hill

9 MIDTOWN PARK DALLAS CBD PRESTON HOLLOW VILLAGE THE HILL PARK CITIES $2.9 Million Avg. Home Value PRESTON CENTER PRESTON HOLLOW $780,000 Avg. Home Value ANDERSON BONNER PARK CHURCHILL PARK Coit Rd. 9

10 Dallas, Texas INVESTMENT CONTACTS TODD SAVAGE Managing Director CHRIS MURPHY Director PARKER MCCORMACK Director ANDREW LEVY Senior Managing Director ADAM ROOSSIEN Analyst WELLS WALLER Analyst DEBT CONTACT STEVE HELDENFELS Managing Director Holliday Fenoglio Fowler, L.P., HFF Real Estate Limited (collectively, HFF ), HFF Securities L.P. and HFF Securities Limited (collectively, HFFS ) are owned by HFF, Inc. (NYSE: HF). HFF and its affiliates operate out of 25 offices and are a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform including debt placement, investment advisory, equity placement, funds marketing, M&A and corporate advisory, loan sales and loan servicing. For more information please visit hfflp.com or follow HFF on HFF has been engaged by the owner of the property to market it for sale. Information concerning the property described herein has been obtained from sources other than HFF, and neither Owner nor HFF, nor their respective equity holders, officers, employees and agents makes any representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all reference to age, square footage, income, expenses and any other property specific information are approximate. Any opinions, assumptions, or estimates contained herein are projections only and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a purchaser, and HFF, its partners, officers, employees and agents disclaim any liability that may be based upon or related to the information contained herein. Prospective purchasers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change Victory Avenue Ste Dallas, TX hfflp.com