151 TECHNOLOGY CENTER

Transcription

1 151 TECHNOLOGY CENTER SAN ANTONIO, TEXAS INVESTMENT SUMMARY

2 THE OFFERING As exclusive advisor to Owner, HFF is pleased to present the opportunity to purchase 151 Technology Center (the Property ), a recently renovated two-building office project totaling 122,184 rentable square feet. The Property is strategically located near the intersection of State Highway 151 and Loop in the highly desirable Northwest office submarket of San Antonio, Texas. At 74% occupancy, the Property presents purchasers with an investment opportunity featuring in-place cash flow from two strong anchor tenants Sears, Roebuck and Co. & Air Force Federal Credit Union - coupled with tremendous upside potential from one plug-and-play vacancy. 151 Technology Center is a quality asset with superior access to major thoroughfares and back office employees, well-positioned for a rapid increase in near-term cash flow and sustained long-term value appreciation in one of San Antonio s most prolific growth corridors. INVESTMENT HIGHLIGHTS IN-PLACE INCOME COUPLED WITH TREMENDOUS UPSIDE POTENTIAL Currently 74% occupied, 151 Technology Center has strong base rental income from two NNN leases to credit tenants with contractual annual rent increases and a combined average remaining lease term of 5.9 years. The Property s vacancy presents investors with an opportunity to quickly increase cash flow through the lease-up of a single plug-and-play space accounting for approximately 26% of the rentable square footage. QUALITY TENANT BASE 151 Technology Center has two tenants - Sears, Roebuck and Co. and Air Force Federal Credit Union - each with significant dedication to the Property. Sears, Roebuck and Co. A subsidiary of Sears Holdings Corporation (NASDAQ: SHLD), Sears first took occupancy in 1988 and has a current lease term through April 2018 with one (1) five-year renewal option. Sears operates numerous functions from this location including worldwide customer and technical support for both home repair and parts distribution businesses. This facility also houses a national data center and operates in rotating shifts of employees approximately 18 hours per day. Air Force Federal Credit Union AFFCU was the previous owner and redeveloped the Property in 2006/2007. AFFCU has a current term through June 2023 with four (4) five-year renewal options. This is AFFCU s corporate headquarters and currently employs approximately 70 people that handle accounting, administrative, IT and marketing functions for the company. 2

3 STRATEGIC LOCATION 151 Technology Center features a convenient location near the intersection of SH 151 and Loop, two of San Antonio s key arteries, granting easy access to major business centers and neighborhoods across the city. The Property is situated at the forefront of the dynamic Westover Hills master-planned community and SH 151 corridor, an established tech hub experiencing some of the fastest growth in San Antonio. A few major employers in the area include Nationwide Insurance, Hartford Insurance, Wachovia Bank, Chase Bank, Microsoft, Lowe s, Valero Energy Corporation and Christus Health. The area boasts a young, bilingual population providing a strong workforce for back office functions common to local tenants. The immediate area provides a surplus of amenities, including restaurants, shopping, entertainment and housing, which supports tenant attraction and retention at the Property. Westover Marketplace, a 500,000 square foot power center anchored by Target, is located across SH 151 from the Property. INSTITUTIONAL QUALITY ASSET 151 Technology Center has been professionally managed and maintained to the highest standards since a full redevelopment of both buildings in 2006/2007, evidenced by the immaculate property condition and lack of immediate capital requirements. The Property offers an above average parking ratio of 8:1,000 square feet, easy car-to-door access for tenants and visitors, efficient and functional tenant spaces and full control of HVAC. BELOW REPLACEMENT COST & FREE AND CLEAR OF ANY EXISTING DEBT The Property s potential sales price will represent a substantial discount to replacement cost for similar product. Current ownership is conveying the property free and clear of existing debt allowing investors to maximize returns by taking advantage of historically favorable lending conditions. PROPERTY OVERVIEW Address: Location: Submarket: 1560 Cable Ranch Road, Buildings A & B San Antonio, Texas Southeast corner of Cable Ranch Road and Lakeside Parkway, less than one half mile from the intersection of Loop and State Highway 151 Northwest Building GLA: Building A 45,935 SF 100% occ. Building B 76,249 SF 59% occ. Total 122,184 SF 74% occ. Acreage: Occupancy: 74% Tenants: Parking: Approximately acres Sears, Roebuck and Co. Air Force Federal Credit Union Approximately 8:1,000 RSF (993 spaces) Year Built 1987 (Building A) 1986 (Building B) Renovated 2006/2007 3

4 TENANTS Tenants Suite SF % of Property Lease Expiration Remaining Lease Term* Sears, Roebuck and Co. A100 45, % Apr years Air Force Federal Credit Union B200 44, % Jun years AVAILABLE B100 31, % NA NA Totals/Averages 122, % 5.9 years *excluding renewal options FLOURISHING SAN ANTONIO ECONOMY San Antonio is the center of economic activity and commerce in South Central Texas as well as home to five Fortune 500 companies USAA, Valero Energy, Clear Channel Communications, NuStar Energy and Tesoro Petroleum. San Antonio enjoys a diverse industry portfolio that continues to strengthen and build upon the city s historic economic base including tourism, insurance, healthcare and biotechnology, energy, government, military, telecommunications and telemarketing. San Antonio s population growth rate has doubled that of the national average over the last decade, and the region has a significantly lower unemployment rate at 5.2% compared to 6.5% nationally. A favorable location for regional and international trade, an adequate infrastructure, a young bilingual workforce, and low living and business costs all support steady growth for the San Antonio economy. 4TH FASTEST POPULATION GROWTH IN THE UNITED STATES IN BEST CITIES FOR FUTURE JOB GROWTH 3.0% ANNUAL JOB GROWTH THROUGH

5 Six Flags Fiesta Texas University of Texas at San Antonio 281 McAllister Park WESTOVER HILLS 10 SAN ANTONIO INT L AIRPORT 151 POTRANCO ROAD WESTOVER MARKETPLACE 151 TECHNOLOGY CENTER INGRAM ROAD STATE HIGHWAY SeaWorld San Antonio Fort Sam Houston 35 CABLE RANCH ROAD 151 TECHNOLOGY CENTER PARKWAY LAKESIDE LOOP 90 Lackland A.F.B. Military Training Center DISCLAIMER Holliday Fenoglio Fowler, L.P. acting by and through Holliday GP Corp, a Texas licensed real estate broker ( HFF ) HFF and HFFS (HFF Securities L.P.) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 23 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry. HFF together with its affiliate HFFS offer clients a fully integrated national capital markets platform including debt placement, investment sales, equity placement, advisory services, loan sales and commercial 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 we make no representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all references 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 buyer. Buyers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change.

6 151 TECHNOLOGY CENTER FOR MORE INFORMATION, PLEASE CONTACT: JOHN TAYLOR Managing Director KELSEY ROOP Associate Director DREW FULLER Real Estate Analyst DEBT INQUIRIES: JEREMY WOMACK Director West 5th Street Suite 1200 Austin, Texas hfflp.com