3100 & 3104 EDLOE STREET

Transcription

1 3100 & 3104 EDLOE STREET HOUSTON, TEXAS EXECUTIVE SUMMARY Holliday GP Corp. ("HFF"), a Texas licensed real estate broker.

2 MEMORIAL VILLAGES 10 IH-10 THE GALLERIA THE GALLERIA / UPTOWN DISTRICT 610 WEST LOOP RIVER OAKS DISTRICT MEMORIAL PARK HIGHLAND VILLAGE RIVER OAKS 3100 & 3104 Edloe WEST ALABAMA ST GREENWAY PLAZA RICHMOND AVE EXECUTIVE SUMMARY EDLOE STREET 69 SOUTHWEST FREEWAY BUFFALO SPEEDWAY WEST UNIVERSITY 2

3 PROPERTY SUMMARY PROPERTY SUMMARY 3100 EDLOE 3104 EDLOE YEAR BUILT RENTABLE AREA 22,446 25,131 PARKING RATIO 3.0 / 1,000 SF 3.0 / 1,000 SF % LEASED 81.1% 94.4% INVESTMENT HIGHLIGHTS Prestigious Inner Loop Location Unique Redevelopment Potential Due to Urban Infill Location Tremendous Owner-User Opportunity Superior Market Fundamentals AVERAGE REMAINING TERM (May 2018) AVERAGE TENURE (May 2018) 1.8 Years 2.2 Years 3.7 Years 9.5 Years Exceptional Regional Mobility Well-Diversified, High-Quality Tenant Base and Strong Occupancy History 3 3

4 LOCATION MAPS PRESTIGIOUS INNER LOOP LOCATION 3100 and 3104 Edloe are prominently positioned along W Alabama St and Edloe Street, in the heart of the Greenway Plaza submarket between Houston s CBD and the Galleria. The buildings are nestled directly in between two of Houston s most affluent and prestigious neighborhoods in River Oaks and West University Place. Furthermore, Tanglewood, Bellaire, Southside Place and South Hampton are minutes away from the property which are home to other major corporate decision makers. Demographics in the immediate area are among the best in the country, with an average household income of over $160,000 within a one-mile radius of the buildings. MONTGOMERY HARRIS George Bush Intercontinental Airport Greenspoint Lake Houston 69 Sheldon Reservoir Energy Corridor3100 & 3104 Edloe Westchase George Bush Park The Galleria CBD Port of Houston Texas Medical Center San Jacinto Bay Barbour s Cut Terminal FOR T BEND 69 Galveston Bay William P. Hobby Airport Bayport Terminal Clear Lake Shepherd Dr Durham Dr Westcott St Smithers Lake Memorial Park Taft St We b r W Alabama St GREENWAY Richmond Ave PLAZA E Montrose Blvd KIRBY COLLECTION M Westheimer Rd Midto West University Texas Medical Center Daytime Population: 106,000 4 a Rd Edloe St Bellaire RICE VILLAGE St St Richmond Ave La Bra nc h WEST AVE Alme d HIGHLAND VILLAGE hd ug Wa 3100 & 3104 Edloe W Gray St Dunlavy St RIVER OAKS DISTRICT S Shepherd Dr San Felipe St Kirby Dr GALLERIA MALL RIVER OAKS SHOPPING CENTER River Oaks Daytime Population: 200,000 Memo wy A ll an Pk W Dallas St BLVD PLACE The Galleria Washington Ave GALVESTON BR AZORIA COUNTMem Y orial Dr Tanglewood Post Oak Blvd The Edloe buildings represent a rare opportunity to acquire cashflowing office assets on a contiguous 1-acre site within one of the strongest submarkets in Houston and most affluent regions in the entire United States and 3104 Edloe are ideally located and sized for future mixed use, multifamily, office, retail and/or condominiums. The 90.6% percent-leased buildings provide strong in-place cash flow; however, the tenant base provides ultimate flexibility as no tenant is contractually obligated to the buildings past February With the ability to get through the rent roll in less than 4 years, a potential owner has the ideal amount of time to finalize plans and capital to break ground by early There is also tremendous upside due to below-market rents and lease up of vacant space coupled with a repositioning opportunity or ideal for a family office to purchase and move in. Lake Houston State Park Sa nj ac int o UNIQUE REDEVELOPMENT POTENTIAL DUE TO URBAN INFILL LOCATION LIBER T Y 69 The Woodlands

5 EXECUTIVE SUMMARY SOUTH WEST FACING 5

6 SUPERIOR MARKET FUNDAMENTALS The Greenway Plaza office submarket in Houston has traditionally been amongst the best performing office markets in Houston. At the end of 4th quarter 2017, Class B office space was 90.6% leased and had nearly 27,000 square feet of absorption. Class B rates average $27.87 per square foot, which commands the second highest class B rate in the city, less than $1.00 per square foot behind the CBD and over 35% higher than the average suburban class B rate. EXCEPTIONAL REGIONAL MOBILITY Situated on nearly an acre site just north of Southwest Freeway, or I-69, tenants enjoy convenient access to one of Houston s major thoroughfares with direct access via Edloe St. The buildings are also located within minutes of 610, Westpark Tollway, Hwy 288, and Interstate 10 providing easy access to virtually anywhere in the metropolitan area. WELL-DIVERSIFIED, HIGH-QUALITY TENANT BASE AND STRONG OCCUPANCY HISTORY The combined rent roll of the two buildings comprise a well-diversified tenant base that represent a broad range of business sectors including architecture, law, private investment, wealth management, energy, real estate, and philanthropic firms with no overexposure to any one industry. Furthermore, the combined occupancy of the two buildings has averaged nearly 95% over the last 5 years. 6

7 GROWING HOUSTON ECONOMY 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. #1 #1 #1 #3 POPULATION GROWTH AMONG U.S. METROS SINCE 2010 (#2 in forecasted population growth through 2030*) GDP PER CAPITA IN THE WORLD (#3 GDP growth since 2000 among U.S. metros) JOB GROWTH AMONG U.S. METROS SINCE 2006 (#3 in forecasted job growth for the next 10 years*) AMONG U.S. CITIES WITH 46 FORTUNE 1000 COMPANIES HEADQUARTERED IN THE CITY 62, ,005 $232,000 JOBS ADDED IN 2017 (#3 IN THE U.S.) NEW RESIDENTS FROM JULY 2015 thru July 2016 (#2 IN THE U.S.) MEDIAN HOME VALUE AS OF DECEMBER MILLION SF Texas Medical Center, the largest medical complex in the world #2 in theatre seats nationally, trailing only Broadway 50,000 ACRES of parks offer more greenspace than any other top 10 metro MOST FAVORABLE metro for Science, Technology, Engineering, and Mathematics workers (STEM) LEADING EXPORTER in the nation due to the Port of Houston 20+ museums, galleries, and cultural centers in the Houston Museum District EXECUTIVE SUMMARY 14% 10-YEAR POPULATION & EMPLOYMENT % GROWTH FORCAST MAJOR U.S. METROS HOUSTON EMPLOYMENT CHANGES (ALL SECTORS GROWING) T-12 JANUARY JANUARY % Seattle HOUSTON Dallas-Fort Worth Professional Business Services 21,400 Trade, Transportation, & Utilities 9,300 10% 8% New York City Boston San Francisco Washington DC NATIONAL AVERAGE Atlanta Construction Leisure and Hospitality Government 5,000 6,400 9,200 6% Los Angeles Manufacturing 4,600 4% 2% 0% Employment 0% Population 2% Chicago 4% 6% Sources: Oxford Economics, Real Capital Analytics, HFF Research, *dots represent the 10 most liquid CRE office markets over the past five years, according to RCA 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 7

8 SITE PLAN 3100 EDLOE STREET 0.49 ACRES W EST A LABAMA COURT 0.95 ACRES COMBINED E DLOE STREET PROPERTY OVERVIEW 3104 EDLOE STREET 0.46 ACRES 8

9 INVESTMENT ADVISORY TRENT AGNEW, SIOR Managing Director T. (713) FINANCING INQUIRIES CAMERON CURETON Senior Director T. (713) JOHNNY KIGHT Real Estate Analyst T. (713) HFF 9 Greenway Plaza, Suite 700 Houston, Texas T. (713) F. (713) hfflp.com 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 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