C U S T E R C O U R TRICHARDSON, TEXAS OFFERING SUMMARY

Transcription

1 CUSTER COURTRICHARDSON, TEXAS OFFERING SUMMARY

2 Holliday Fenoglio Fowler, L.P. acting by and through Holliday GP Corp. a Texas licensed real estate broker ( HFF ) has been exclusively retained by the Owner to offer to qualified investors the opportunity to purchase Custer Court, a 121,596 square foot, office building located in the heart of the North Texas Growth Corridor in the North Dallas suburb of Richardson. Custer Court is positioned within the Richardson/Plano office market, which is a market leader in the DFW metroplex with net absorption of 1.6 million square feet in The market is a preferred location for corporate users due to its excellent access, diverse amenity base and abundant residential options. At 100% occupancy, Custer Court provides investors stable, long-term cash flow as well as the opportunity to acquire a Class A asset in a rapidly expanding economic environment at an attractive yield and discount to replacement cost. PROPERTY OVERVIEW ADDRESS: RENTABLE AREA: PERCENTAGE LEASED: 100% YEAR BUILT: 2001 STORIES: 3 SITE: PARKING RATIO: 501 W. President George Bush Highway Richardson, TX ,596 square feet 6.34 acres 608 parking spaces for a parking ratio of 5.0 per 1,000 square feet EXECUTIVE SUMMARY Stable in-place cash flow and discount to replacement cost Institutionally developed and maintained building with 5.0 per 1,000 parking Proximity to the new CityLine mixed-use development currently under construction. Excellent visibility at the intersection of President George Bush Turnpike (SH-190) and North Central Expressway (US-75). Richardson location with access to the second largest employment center in DFW. The Richardson/Plano submarket was a market leader in 2013 with 1.6 million square feet of net absorption.

3 CITYLINE MIXED USE DEVELOPMENT Located less than a mile from the Property at the southeast quadrant of the US 75 and President George Bush Turnpike is the new master-planned CityLine, a 186-acre KDC mixed-use development that will cost approximately $1.5 billion once complete. At full build out, CityLine will consist of approximately 6 million square feet of office space, two hotels, 4,000 multifamily residential units, more than 300,000 square feet of grocery, restaurant, entertainment and retail space, and three parks. State Farm will anchor the project with their regional campus that will consist of 2 million square feet in four office towers and that will add approximately 8,000 employees to the area. Raytheon will occupy an additional 500,000 square feet in an adjoining campus and will contribute an additional 1,700 employees.

4 INVESTMENT HIGHLIGHTS INSTITUTIONAL QUALITY ASSET. Institutionally maintained since initial completion, Custer Court is a three-story, Energy Star rated, Class A asset that enjoys unmatched visibility on the President George Bush Turnpike. Built in 2001, the Property s large, efficient and rectangular floor plates are designed to cater to tenants of all sizes. The current owner is paving an additional 132 parking spaces that are scheduled to be completed by the end of When completed, the Property boasts an above-market parking ratio of 5.0 per 1,000 square foot. STABLE CASH FLOW AND DISCOUNT TO REPLACEMENT COST. The project is 100% leased to a diverse tenant base with an average remaining lease term of 4.7 years. The Property is also expected to trade at a discount to replacement cost with an attractive going-in yield. Tenant SF % of Property Lease Expiration Remaining Lease Term Industry Progressive Insurance 21, % Aug Insurance Vertex 20, % Mar Business Services MedeAnalytics 18, % Jun Healthcare Sedgwick Claims 11, % Dec Business Services Keller Williams 11, % Feb Real Estate Other Tenants 37, % Total 121, % 4.7 Years

5 INVESTMENT HIGHLIGHTS INGRESS / EGRESS. The Property enjoys excellent access and visibility at the intersection of US 75 and President George Bush Turnpike, one of the most traveled areas in the entire DFW area with more than 350,000 cars passing through the juncture daily. Together, these two thoroughfares link the Property to every major employment center and amenity base in the Dallas Metro area. Furthermore, the DART Rail Bush Turnpike Station (Red Line) is less than half a mile east of the Property and connects Richardson to Downtown Dallas and to DFW International Airport. RICHARDSON LOCATION. Richardson is the second largest employment center in the Dallas/Fort Worth metropolitan area with the supporting economic base recently expanding from a telecom hub to a much more diversified set of industries. The three largest tenants in the market now represent three separate industries; telecommunications (AT&T), insurance services (State Farm), and college education (The University of Texas at Dallas). The area benefited from a substantial amount of recent relocation announcements including State Farm (8,600 jobs), Kohls (1,500 jobs), and Raytheon (1,700 jobs). Richardson also benefits from a well-educated and diverse labor supply as over 50% of the adult workforce has a undergraduate or advanced degree and the area has the largest number of white collar workers within a 15-minute drive radius compared to the other major business centers in DFW. RICHARDSON/PLANO OFFICE MARKET. In a very short period of time, the Richardson/Plano office submarket has re-established itself as one of Dallas top suburban office markets. Richardson/Plano was a DFW market leader in 2013, absorbing approximately 1.6 million square feet thanks to several relocation announcements including State Farm, Kohls, Associa, and Inogen. With its accelerated absorption, the average occupancy in the market has grown to approximately 89%, an increase of 900 basis points from the beginning of In addition, rental rates in the market have increased 11% since the beginning of 2012 to approximately $20 psf, which is 99% of its pre-recession high of $20.26psf.

6 PROSPER Sherrill Park Golf Course CITYLINE McKINNEY DEVELOPMENT LITTLE ELM Dallas Cowboys Hall Office Park Lewisville N BUR RAY SAM THE COLONY IGHLAND VILLAGE Frisco Bridges Y LWA TOL ALLEN Granite Park Future Palisades Mixed-Use Development LUCAS Legacy LEWISVILLE Canyon Creek Country Club PLANO International Business Park PR E MOUND ENT GEORGE BUSH T SID UR NP I COPPELL CITYLINE DEVELOPMENT SACHSE Telecom Corridor RICHARDSON ADDISON Pr North WYLIE MURPHY KE Addison Airport CARROLLTON VINE Nort DART Rail Station Bush Turnpike Station West FRISCO DART Rail Station Galatyn Park Station xpy h Central E CORINTH es FARMERS BRANCH GARLAND ROWLETT eb 30 ike np Uptown SUNNYVALE 30 CBD 30 GRAND PRAIRIE Ray Hubbard White Rock wood MESQUITE OAK CLIFF OFFERING FORMAT Mountain Creek 45 BALCH TERMS SPRINGS No asking price has been established for this offering. OFFER DATE To be announced DUNCANVILLE ur ht us University Park Highland Park DALLAS rg Highlands eo TOLLWAY IRVING DALLAS NORTH DALLAS LOVE FIELD AIRPORT Preston Hollow.G LAS COLINAS Dallas/Fort Worth International Airport HUTCHINS 20 SEAGOVILLE Joe Pool HFF 2323 Victory Avenue, Suite 1200 Dallas, TX Telephone: Facsimile: hfflp.com ADDITIONAL INFORMATION If you have any questions or require additional information, please contact the individuals below. ANDREW LEVY Senior Managing Director alevy@hfflp.com TODD SAVAGE Managing Director tsavage@hfflp.com ELIZABETH MALONE Director emalone@hfflp.com CHRIS SELBO Senior Real Estate Analyst cselbo@hfflp.com For questions regarding debt structures on this property, please contact: ADAM HERRIN Director aherrin@hfflp.com HFF (Holliday Fenoglio Fowler, L.P.) 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 Twitter at twitter.com/hff. Holliday Fenoglio Fowler, L.P. ( 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.