1219 W. 6 th Street Austin, TX

Transcription

1 OFFERING MEMORANDUM 1219 W. 6 th Street Austin, TX MULTI-TENANT INVESTMENT OPPORTUNITY

2 1219 W. 6 TH STREET 1219 W. 6 th Street Austin, TX For more information about this property, please contact: RYAN HOFF Vice President ryan.hoff@srsre.com WILL MAJORS SVP & Market Leader will.majors@srsre.com 2

3 TABLE OF CONTENTS OVERVIEW PROPERTY DETAILS MARKET OVERVIEW SUPPORTING DOCUMENTS Investment Summary Property Overview Market Aerial Property Aerial Austin, TX Downtown Demographics Snapshot Confidentiality & Conditions of Sale Information About Property Photos Tenant Profile Demographic Summary Brokerage Services 3

4 OVERVIEW 4

5 INVESTMENT SUMMARY OVERVIEW 1219 W. 6 th Street SRS Real Estate Partners is excited to present for sale the 1219 W. 6 th Street Building. Austin is one of America s fastest growing cities, residential population downtown has doubled since 2000 and there are nearly 90,000 employees downtown. Austin is the 11th largest city in the U.S., and currently boasts an MSA population of over 2 million people with more than 24 million visitors annually. *Source- 5

6 PROPERTY OVERVIEW Highlights OVERVIEW Irreplaceable Downtown Austin Real Estate Opportunity Positioned on Highly Coveted West 6th Street Extremely High Barrier to Entry Submarket Single-Tenant Investment Opportunity Publicly Traded (MKC): Market Cap $14B+ Below Market Rent-Great Upside PROPERTY TYPE CBD Retail/Office Building OFFERING GLA 8,000 SF LOT SIZE 10,000 SF ( AC) ZONING CS-MU-V-CO-NP YEAR BUILT 1969 PRICE $5,000,000 CAP RATE 4.0% ADDRESS 1219 W. 6 th Street Austin, TX LEASE INFORMATION TENANT McCormick Corporation (DBA Stubb s) LEASE COMMENCEMENT 11/1/2011 LEASE EXPIRATION 10/31/2021 RENEWAL OPTIONS One 5-Year Market LEASE TYPE NN LANDLORD RESPONSIBILITIES Roof, Foundations, Parking, Exterior Walls, HVAC BASE RENT $25/NN 6

7 OVERVIEW 7

8 MARKET AERIAL PROPERTY DETAILS 8

9 PROPERTY AERIAL PROPERTY DETAILS 9

10 TENANT PROFILE PROPERTY DETAILS mccormickcorporation.com Locations: Facilities in 24 different countries NYSE: MKC McCormick & Company, Incorporated manufactures, markets, and distributes spices, seasoning mixes, condiments, and other flavorful products to the food industry. The company operates through two segments, Consumer and Industrial. The Consumer segment offers spices, herbs, and seasonings, as well as desserts. This segment markets its products under the McCormick, French, Frank s RedHot, Lawry s, Club House, Gourmet Garden, OLD BAY brands in the Americas; Ducros, Schwartz, Kamis, and Drogheria & Alimentari, and Vahiné brand names in Europe, the Middle East, and Africa; McCormick and DaQiao brands in China; and McCormick, Aeroplane, and Gourmet Garden brand names in Australia, as well as markets regional and ethnic brands, such as Zatarain s, Stubb s, Thai Kitchen, and Simply Asia. It also supplies its products under the private labels. This segment serves retailers comprising grocery, mass merchandise, warehouse clubs, discount and drug stores, and e-commerce retailers directly and indirectly through distributors or wholesalers. The Industrial segment offers seasoning blends, spices and herbs, condiments, coating systems, and compound flavors to multinational food manufacturers and foodservice customers. It serves foodservice customers directly and indirectly through distributors. McCormick & Company, Incorporated was founded in 1889 and is based in Sparks, Maryland. 10

11 AUSTIN, TX MARKET OVERVIEW Market Overview Texas consistently ranks as one of the nation s most favorable business climates based on its low tax burden and competitive regulatory environment. Aggregate costs for real estate, energy, wages and taxes are below most states in the country. Costs in Austin are 4% below the national average in Texas consistently places as one of the best states for business in numerous rankings. Economy The Austin metro area had the nation s second-fastest-growing economy in 2015, according to new federal data. The regional economy s gross domestic product, or GDP, grew at a 5 percent rate last year second in the nation among major U.S. cities only to Austin s neighbor to the south, San Antonio. 11

12 AUSTIN, TX MARKET OVERVIEW Downtown Market Downtown Austin is known throughout Texas and across the United States as a thriving destination for live music, dining and entertainment; many other cities envy the active streets and sidewalks, the positive reputation that the city enjoys as a visitor destination and the quality of life that sets Austin apart from less exciting downtown areas. In addition to its reputation for dining and entertainment, Austin has thousands of new downtown residents who have chosen to live in the heart of the city in mid-rise condominiums, urban apartments and lofts. Almost 67,000 downtown office workers sustain the weekday market (and up to 90,000 in the larger trade area), and the expanded convention center, downtown hotels and museums draw visitors from the region and across the country. 12

13 DOWNTOWN DEMOGRAPHIC SNAPSHOT MARKET OVERVIEW Office Market Residential Market Tourism Market DOWNTOWN EMPLOYEES 1 86,226 POPULATION 1&3 12,000 AUSTIN ANNUAL VISITORS Million SF OF MULTI-TENANT OFFICE SPACE 2 9 Million OFFICE SPACE RECENTLY COMPLETED (879,571 MULTI-TENANT) 3 955,571 SF CONDO UNITS UNDER CONSTRUCTION CONDO UNITS BUILT DOWNTOWN SINCE ,297 CONDO AVERAGE PRICE/SF 2 $583 AUSTIN ANNUAL ECONOMIC IMPACT FROM VISITOR SPENDING 1 $7 Billion HOTEL ROOMS AVAILABLE DOWNTOWN 2 7,929 OFFICE SPACE UNDER CONSTRUCTION (1,151,500 SF MULTI-TENANT) 3 1,601,500 SF APARTMENT UNITS UNDER CONSTRUCTION 3 1,187 HOTEL ROOMS UNDER CONSTRUCTION 2 2,123 RENTAL RATE 2 $48.68/SF APARTMENT UNITS BUILT SINCE ,633 AVERAGE APARTMENT RATE 2 $2.43/SF AVERAGE HOTEL OCCUPANCY RATE % OCCUPANCY RATE % 1 Source: U.S. Census Bureau, Source: Capitol Market Research, September Source: City of Austin & Downtown Austin Alliance, September 2016 DOWNTOWN APARTMENT OCCUPANCY % 1 Source: U.S. Census Bureau 2 Source: Capitol Market Research, September Source: Downtown Austin Alliance, September 2016 AVERAGE DAILY HOTEL RATE 3 $ Source: ACVB, August Source: Downtown Austin Alliance, September Source: ACVB & Smith Travel Research, January-July

14 MARKET OVERVIEW DEMOGRAPHIC SUMMARY POPULATION 1 MILE 3 MILES 5 MILES 2000 Population 9, , , Population 11, , , Population 14, , , Population 16, , , Annual Rate 2.15% 0.33% 0.38% Annual Rate 3.09% 1.93% 1.87% Annual Rate 2.49% 1.72% 1.71% 2017 Male Population 53.9% 51.3% 51.3% 2017 Female Population 46.1% 48.7% 48.7% 2017 Median Age In the identified area, the current year population is 14,407. In 2010, the Census count in the area was 11,552. The rate of change since 2010 was 3.09% annually. The five-year projection for the population in the area is 16,291 representing a change of 2.49% annually from 2017 to Currently, the population is 53.9% male and 46.1% female. MEDIAN AGE The median age in this area is 34.7, compared to U.S. median age of RACE AND ETHNICITY 1 MILE 3 MILES 5 MILES 2017 White Alone 84.0% 75.2% 70.4% 2017 Black Alone 3.0% 4.8% 6.9% 2017 American Indian/Alaska Native Alone 0.5% 0.6% 0.8% 2017 Asian Alone 7.1% 8.1% 5.9% 2017 Pacific Islander Alone 0.1% 0.1% 0.1% 2017 Other Race 2.5% 7.8% 12.5% 2017 Two or More Races 2.8% 3.4% 3.5% 2017 Hispanic Origin (Any Race) 11.4% 22.7% 32.6% Persons of Hispanic origin represent 11.4% of the population in the identified area compared to 18.1% of the U.S. population. Persons of Hispanic Origin may be of any race. The Diversity Index, which measures the probability that two people from the same area will be from different race/ethnic groups, is 43.2 in the identified area, compared to 64.0 for the U.S. as a whole. HOUSEHOLDS 1 MILE 3 MILES 5 MILES 2000 Households 5,032 57, , Households 6,775 60, , Total Households 8,556 70, , Total Households 9,791 77, , Annual Rate 3.02% 0.49% 0.58% Annual Rate 3.27% 2.20% 2.04% Annual Rate 2.73% 1.98% 1.89% 2017 Average Household Size The household count in this area has changed from 6,775 in 2010 to 8,556 in the current year, a change of 3.27% annually. The five-year projection of households is 9,791, a change of 2.73% annually from the current year total. Average household size is currently 1.60, compared to 1.59 in the year The number of families in the current year is 2,221 in the specified area. Year: 2016 Source: Esri 14

15 MARKET OVERVIEW DEMOGRAPHIC SUMMARY MEDIAN HOUSEHOLD INCOME 1 MILE 3 MILES 5 MILES 2017 Median Household Income $69,291 84, , Median Household Income $78,917 89, ,151 AVERAGE HOUSEHOLD INCOME 1 MILE 3 MILES 5 MILES 2017 Average Household Income $106,925 $73,051 $75, Average Household Income $116,613 $78,080 $80, Annual Rate 1.75% 1.34% 1.31% PER CAPITA INCOME 1 MILE 3 MILES 5 MILES 2017 Per Capita Income $62,695 $32,625 $32, Per Capita Income $68,561 $34,984 $34, Annual Rate 1.80% 1.41% 1.35% HOUSEHOLDS BY INCOME Current median household income is $77,463 in the area, compared to $56,124 for all U.S. households. Median household income is projected to be $95,998 in five years, compared to $62,316 for all U.S. households Current average household income is $120,773 in this area, compared to $80,675 for all U.S. households. Average household income is projected to be $143,759 in five years, compared to $91,585 for all U.S. households Current per capita income is $72,170 in the area, compared to the U.S. per capita income of $30,820. The per capita income is projected to be $86,422 in five years, compared to $34,828 for all U.S. households HOUSING 1 MILE 3 MILES 5 MILES 2000 Total Housing Units 5,459 59, , Owner Occupied Housing Units 1,738 19,652 43, Renter Occupied Housing Units 3,294 37,485 71, Vacant Housing Units 427 2,694 4, Total Housing Units 8,337 66, , Owner Occupied Housing Units 2,254 21,652 46, Renter Occupied Housing Units 4,521 38,361 75, Vacant Housing Units 1,562 6,874 13, Total Housing Units 10,514 77, , Owner Occupied Housing Units 2,536 22,760 48, Renter Occupied Housing Units 6,021 47,512 92, Vacant Housing Units 1,958 7,540 14, Total Housing Units 11,950 85, , Owner Occupied Housing Units 2,737 24,371 51, Renter Occupied Housing Units 7,054 53, , Vacant Housing Units 2,159 8,272 16,106 Currently, 24.1% of the 10,514 housing units in the area are owner occupied; 57.3%, renter occupied; and 18.6% are vacant. Currently, in the U.S., 55.6% of the housing units in the area are owner occupied; 33.1% are renter occupied; and 11.3% are vacant. In 2010, there were 8,337 housing units in the area % owner occupied, 54.2% renter occupied, and 18.7% vacant. The annual rate of change in housing units since 2010 is 10.86%. Median home value in the area is $533,625, compared to a median home value of $207,344 for the U.S. In five years, median value is projected to change by 1.63% annually to $578,431. Year: 2016 Source: Esri 15

16 CONFIDENTIALITY & CONDITIONS OF SALE SUPPORTING DOCUMENTS This Offering Memorandum is not intended to constitute an offer, but is merely a solicitation of interest with respect to a possible sale of the 410 CENTRE. This Offering Memorandum has been prepared by SRS Real Estate Partners and has been approved for distribution by the owner. Although effort has been made to provide accurate information, neither owner nor SRS can warrant or represent accuracy or completeness of the materials presented herein or in any other written or oral communications transmitted or made available to the purchaser. Many documents have been referred to in summary form and these summaries do not purport to represent or constitute a legal analysis of the contents of the applicable documents. Neither owner nor SRS represents that this offering summary is all inclusive or contains all of the information a purchaser may require. All of the financial projections and/or conclusions presented herein are provided strictly for reference purposes and have been developed based upon assumptions and conditions in effect at the time the evaluations were undertaken. They do not purport to reflect changes in the economic performance of the property or the business activities of the owner since the date of preparation of this Offering Memorandum. The projected economic performance of the property, competitive submarket conditions, and selected economic and demographic statistics may have changed subsequent to the preparation of the package. Qualified purchasers are urged to inspect the property and undertake their own independent evaluation of the property, the market and the surrounding competitive environment. Environmental matters can and do have dramatic impact not only on the physical conditions of a property but also on its economic performance and underlying value. If such substances exist, special governmental approvals and permits may be required. Purchasers are encouraged to engage qualified professionals to determine whether hazardous or toxic substances or wastes, including asbestos, PCB s, petrochemicals or other contaminants or conditions are present at the property. Neither SRS nor the owner performs or conducts investigations or analyses of environmental matters. It is the sole responsibility of qualified purchasers to review all applicable laws and regulations applying to either the existence, transportation or removal of hazardous materials and to prudently have an on site investigation and inspection of the property conducted. The cost and removal of hazardous materials may be substantial; therefore, SRS strongly encourages qualified purchasers to engage legal counsel and appropriate technical professionals if any of these conditions are discovered during the inspection. No person, firm or entity is authorized to make or submit offers on behalf of anyone or divulge or reproduce the contents of this executive summary or discuss the availability or the purchase of the property without first having registered in writing the name of the party receiving the material and received written authorization to proceed from SRS. The owner and SRS reserve the right, at their discretion, to reject any or all expressions of interest with any party at any time with or without notice. The Recipient is strictly prohibited from contacting the tenant or any affiliate regarding this offering without prior written authorization of Owner or SRS. The terms and conditions stated herein apply to all sections of the executive summary. SRS is acting as exclusive disposition agent, and the owner reserves the right to withdraw the property from the market, to change the price and terms or sell the property at any time without notice being given. 16

17 INFORMATION ABOUT BROKERAGE SERVICES Texas Real Estate Commission ( ) SUPPORTING DOCUMENTS Texas law requires all real estate license holders to give the following information about brokerage services to prospective buyers, tenants, sellers and landlords. TYPES OF REAL ESTATE LICENSE HOLDERS: A BROKER is responsible for all brokerage activities, including acts performed by sales agents sponsored by the broker. A SALES AGENT must be sponsored by a broker and works with clients on behalf of the broker. A BROKER S MINIMUM DUTIES REQUIRED BY LAW (A client is the person or party that the broker represents): Put the interests of the client above all others, including the broker s own interests; Inform the client of any material information about the property or transaction received by the broker; Answer the client s questions and present any offer to or counter-offer from the client; and Treat all parties to a real estate transaction honestly and fairly. A license holder can represent a party in a real estate transaction. AS AGENT FOR OWNER (SELLER/LANDLORD): The broker becomes the property owner s agent through an agreement with the owner, usually in a written listing to sell or property management agreement. An owner s agent must perform the broker s minimum duties above and must inform the owner of any material information about the property or transaction known by the agent, including information disclosed to the agent or subagent by the buyer or buyer s agent. AS AGENT FOR BUYER/TENANT: The broker becomes the buyer/tenant s agent by agreeing to represent the buyer, usually through a written representation agreement. A buyer s agent must perform the broker s minimum duties above and must inform the buyer of any material information about the property or transaction known by the agent, including information disclosed to the agent by the seller or seller s agent. AS AGENT FOR BOTH - INTERMEDIARY: To act as an intermediary between the parties the broker must first obtain the written agreement of each party to the transaction. The written agreement must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker s obligations as an intermediary. A broker who acts as an intermediary: Must treat all parties to the transaction impartially and fairly; May, with the parties written consent, appoint a different license holder associated with the broker to each party (owner an buyer) to communicate with, provide opinions and advice to, and carry out the instructions of each party to the transaction. Must not, unless specifically authorized in writing to do so by the party, disclose: that the owner will accept a price less than the written asking price; that the buyer/tenant will pay a price greater than the price submitted in a written offer; and any confidential information or any other information that a party specifically instructs the broker in writing not to disclose, unless required to do so by law. AS SUBAGENT: A license holder acts as a subagent when aiding a buyer in a transaction without an agreement to represent the buyer. A subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first. TO AVOID DISPUTES, ALL AGREEMENTS BETWEEN YOU AND A BROKER SHOULD BE IN WRITING AND CLEARLY ESTABLISH: The broker s duties and responsibilities to you, and your obligations under the representation agreement. Who will pay the broker for services provided to you, when payment will be made and how the payment will be calculated. LICENSE HOLDER CONTACT INFORMATION: This notice is being provided for information purposes. It does not create an obligation for you to use the broker s services. Please acknowledge receipt of this notice below and retain a copy for your records. Will Majors will.majors@srsre.com Licensed Supervisor of Sales Agent/Associate License No. Phone SRS Real Estate Partners LLC mark.reeder@srsre.com Ryan Hoff ryan.hoff@srsre.com Licensed Broker/Broker Firm Name or Primary Assumed Business Name License No. Phone Sales Agent/Associate s Name License No. Phone Will Majors will.majors@srsre.com Designated Broker of Firm License No. Phone Buyer Initials Tenant Initials Seller Initials Landlord Initials Date 17

18 Exclusively Retail. Extensive Solutions. SRSRE.COM