The. Ρalm Court. Building 3303 LOUISIANA HOUSTON, TEXAS EXECUTIVE SUMMARY. Holliday GP Corp. ("HFF"), a Texas licensed real estate

Transcription

1 he Ρalm Court Building MIDOWN 3303 LOUISIANNA BOUIQUE HOUON, OFFICE BUILDING EXAS 3303 LOUISIANA HOUON, EXAS EXECUIVE SUMMAY Holliday GP Corp. ("HFF"), a exas licensed real estate

2 HFF is pleased to present the opportunity to purchase a 100% fee-simple interest in Palm Court (the Building ), a two-story, boutique office building located in the heart of Midtown along Louisiana Street. Ideally located directly off Spur 527, the Building offers ultimate ease of access and visibility along one of the main arteries into the CBD. Palm Court is steps away from retailers, over 50 restaurants, and numerous parks and amenities within the area. Positioned in an irreplaceable location, Palm Court offers potential investors the ability to acquire an income producing asset in an exploding submarket of Houston. he building totals 22,574 square feet and is currently 68.7% leased. Buyers have the opportunity to realize upside via the lease up of 7,000 square feet of vacant space as well as investing in a potential covered land play location. 2 HFF

3 POPEY SUMMAY Year Built / enovated 1968 / 2002 entable Area 22,574 Parking atio 2.5 / 1,000 SF % Leased 68.7% Major enants Escape the oom, Global Parking Operations, Gateway Academy Average emaining erm (March 2018) 3.7 Years Average Gross ent $29.37 In-Place NOI $247,832 IEPLACEABLE LOCAION A AACIVE BASIS Midtown has experienced explosive growth over the last ten years in both the residential and commercial space. More than 3,500 units and 400,000 square feet of commercial space has been added in this dense pocket over the previous decade alone. With virtually no developable land site in the immediate submarket, barriers to entry in this market are arguably the highest in the city. Office replacement costs are likely well over $300 per square foot, making Palm Court an opportunity for investors to purchase well beyond replacement cost. his property also presents investors an opportunity to acquire an income producing asset in the ultra-dense Midtown submarket. IMMEDIAE UPSIDE POENIAL Currently 68.7% leased, potential investors have the immediate ability to lease over 7,000 square feet of move-in ready space to improve their bottom line. his property presents an incredible opportunity for a user/owner to move into the vacancy and operate the building. Moreover, leasing demand from users ranging from 2,000 square feet to 5,000 square feet have seen an uptick in activity and continue to dominate the Midtown market. ACCESSIBILIY AND SUPEIO INGESS/EGESS Palm Court s location is unmatched being just two blocks from Spur 527 which is an immediate feeder road to Hwy 59/IH-69. enants are provided with ultimate ease of access being one block south of Elgin, two blocks north of Spur 527 and less than one mile from IH-45. ABOVE MAKE PAKING WIH EASEMENS Parking availability is more than double the market standard of 1 per 1,000 square feet. he property offers 2.5 per 1,000 square feet through a 90-year parking easement with the Bienville Building and the multi-family unit directly across the street, Calais Midtown Apartments. Office tenants have the ability to park in a covered garage while the Calais parking garage is underutilized during working hours. Parking is extremely limited in Midtown which proves this easement to be invaluable. FUUE COVD LAND PLAY POENIAL As the Midtown area continues to develop and expand, this property and possible future development site is located at an exceptional location that will only increase in value into the future. Midtown is Houston s premier urban area that attracts a professional mix of Millennial s, Generation X, and Empty Nesters alike. New high rise developments from respected developers, the Morgan Group, Caydon and PMG, illustrate the dramatic growth in the area where Palm Court is perfectly aligned to reap all the benefits. An incredible amount of amenities are provided within steps of the property proving it to be in an irreplaceable position for years to come. he first ever mixed-use residential grocery midrise in Houston is under construction a half-block from Palm Court. Whole Foods will anchor the center and be an immediate attraction to the surrounding area. As the density increases in Midtown and immediate surrounding areas, this property has the ability to be just as valuable as a future land play than an operating commercial building. INVEMEN HIGHLIGHS PALM COU 3

4 HOUON ECONOMIC OVEVIEW Houston is the 4th largest MSA in the country and has been the recipient of nation leading population and employment growth due to the city s high quality of life, business friendly environment, and diverse economy. Houston added 62,900 jobs in 2017, ranking the city 3rd amongst all major metropolitan areas in the US (just behind NYC and DFW) and added nearly 15,000 more jobs than its 25-year historical average. Every single business sector (except Information ) posted positive job growth, a testament to the city s diversification. Additionally, 125,000 new residents migrated to Houston from July 2015 July 2016 (2nd in the nation) and the Houston Business Cycle Index has grown at an annualized 2.2%, suggesting growth in the economy has returned to historic norms. As the nation s fourth-largest metropolitan area is back on the rise, institutional and private groups have made significant investments in the commercial real estate with more than $4.6 billion in office properties trading hands in 2017 alone. As the only major city in the US to have seen values reset from a downturn in the current cycle, investors have returned to Houston to maximize their position in a growing economy MILLION SF exas Medical Center, the largest medical complex in the world #2 in theatre seats nationally, trailing only Broadway 50,000 ACES of parks offer more greenspace than any other top 10 metro INVEMEN HIGHLIGHS #1 #1 #1 POPULAION GOWH AMONG U.S. MEOS SINCE 2010 (#2 in forecasted population growth through 2030*) GDP PE CAPIA IN HE WOLD (#3 GDP growth since 2000 among U.S. metros) JOB GOWH AMONG U.S. MEOS SINCE 2006 (#3 in forecasted job growth for the next 10 years*) 62, ,005 JOBS ADDED IN 2017 NEW ESIDENS FOM JULY 2015 thru July 2016 MO FAVOABLE metro for Science, echnology, Engineering, and Mathematics workers (EM) LEADING EXPOE in the nation due to the Port of Houston 20+ #3 AMONG U.S. CIIES WIH 46 FOUNE 1000 COMPANIES HEADQUAD IN HE CIY $232,000 MEDIAN HOME VALUE AS OF DECEMBE 2017, SEING A CIY ECOD FO HA MONH museums, galleries, and cultural centers in the Houston Museum District 14% 12% 10% 8% 6% 10-YEA POPULAION & EMPLOYMEN % GOWH FOCA MAJO U.S. MEOS New York City Boston Los Angeles San Francisco Seattle Washington DC NAIONAL AVEAGE HOUON Dallas-Fort Worth Atlanta HOUON EMPLOYMEN CHANGES (ALL SECOS GOWING) -12 JANUAY JANUAY 2018 Professional Business Services 21,400 rade, ransportation, & Utilities Construction Leisure and Hospitality Government Manufacturing 5,000 4,600 6,400 9,300 9,200 4% 2% 0% Employment 0% Population 2% Chicago 4% 6% Sources: Oxford Economics, eal Capital Analytics, HFF esearch, *dots represent the 10 most liquid CE office markets over the past five years, according to CA 8% 10% 12% 14% 16% 18% 20% Financial Activity Mining and Logging Other Services Education and Health Services Information (10,000) (600) 0 3,100 2,700 2,200 1,100 10,000 20,000 30,000 4 HFF

5 INVEMEN HIGHLIGHS PALM COU 5

6 CAMDEN CIY CENE APAMENS 2222 SMIH APAMENS CIY PLACE APAMENS POPEY DESCIPION U/C 2018 APAMENS (U/C) CALAIS MIDOWN APAMENS PEAL MIDOWN APAMENS LOUISIANA GYM he Ρalm Court Building HE MIX APAMENS UA MILAM CAMDEN AVIS APAMENS AVIS CAMDEN MCGOWEN AION APAMENS FANCIS 3330 MAIN APAMENS (U/C) MID MAIN LOFS 6 HFF

7 SIE PLAN & LOCAION MAPS 69 he Woodlands G IN MONG OME Y CO U N Y Lake Houston State Park L I BE Y COU N Y E EL SM I H HAIS COU N Y Greenspoint George Bush Intercontinental Airport Lake Houston 69 Sheldon eservoir he Ρalm Court Building Energy Corridor 527 U CBD Port of Houston exas Medical Center 69 Galveston Bay William P. Hobby Airport Bayport erminal IS IA N FO B EN D CO UN Y LO U Clear Lake G A LV E ON CO U N Y IS B A ZO I A COU N Y AM C Smithers Lake M AN 3303 LOUISIANA IL F BAGBY San Jacinto Bay Barbour s Cut erminal A A he Galleria POPEY DESCIPION Westchase George Bush Park BE Y AN IS LM AV O H PALM COU 7

8 69 AVIS MAIN MILAM UA POPEY DESCIPION he Ρalm Court Building LOUISIANA U/C 2018 Palm Court is located in the heart of Houston in the thriving mixed-use Midtown district, just a few blocks south of the CBD. ecent expansion and commitment from institutional owners, such as PMG, the Morgan Group, and Caydon, to develop in Midtown has proven the incredible potential and recent growth in the immediate area. Palm Court is perfectly positioned with all this progress and is aligned to reap all the benefits from the recent expansion. Situated directly between Downtown and the Medical Center, the Property is virtually accessible from any part of Houston and is within close proximity to an outstanding selection of retailers, nearly 50 neighborhood restaurants and numerous parks and amenities in the immediate area. With three MEOail stations, five colleges and universities nearby containing an enrollment of over 50,000 students and two of the largest employment centers in the region, Midtown s central location makes it one of the most desirable areas to live, work and play. LOCAION HIGHLIGHS: ACCESSIBILIY Adjacent to Elgin/Westheimer, one of Houston s main retail corridors Less than three miles south of Interstate 10, Houston s main east/west artery Less than one mile west of Interstate 45, Houston s main north/south artery Less than one mile north of US Hwy 59/Hwy 288, providing additional access south and southwest Home to 3 MEOail light-rail stations Easy access to Downtown, West University, the exas Medical Center, Minute Maid Park, the oyota Center and NG Park & Stadium

9 INVEMEN ADVISOY UY AMLYN, CCIM, SIO Senior Managing Director el: JOHN INDELLI Director el: JOHNNY KIGH Analyst el: FINANCING INQUIIES DUIN SELZE Director el: Holliday Fenoglio Fowler, L.P., HFF eal 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 26 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 2018 HFF has been engaged by the owner of the property [properties] to market it [them] for sale. Information concerning the property [properties] 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. he information contained herein is subject to change.