OFFERING SUMMARY HEADQUARTERS AT LANTANA RIDGE AUSTIN, TEXAS Holliday Fenoglio Fowler, L.P. acting by and through Holliday GP Corp a Texas licensed real estate broker ( HFF ).
HFF has been exclusively retained to offer to qualified investors an opportunity to purchase the YETI Headquarters at Lantana Ridge ( the Property ), two, just completed, Class A office buildings consisting of 168,923 square feet of creative office space on Southwest Parkway in Austin, Texas. The Property is 100% leased on a net lease basis to YETI ( the Tenant ) for 10 years, from July 2017, with annual rent escalations. The Property features an extensive amenity package including an outdoor kitchen, rooftop terrace, full fitness center with showers, exterior courtyard with food truck parking and picturesque landscaping. 2
PROPERTY OVERVIEW Location: 7601 Southwest Parkway Austin, TX 78735 Submarket: Acres: Southwest 21.60 Acres Year of Completion: 2017 Developer: Building Size: Lincoln Property Company 168,923 square feet Number of Buildings: 2 Number of Stories: 3 Typical Floor Size: +/- 29,000 SF Occupancy: 100% Parking: 773 Total Spaces (4.58:1,000); 177 below the building parking spaces 3
YETI OVERVIEW COMPANY HIGHLIGHTS Corporate HQ: Ownership Status: Industry: Austin, Texas Private (Cortec Group- 67% ownership) Outdoor & Recreation Employees: 312 (as of March 2016) Year Founded: 2006 2015 Annual Revenue*: $468.9 million $191.3 million in Q1 2016 3 Year Growth (2013-15): 748% Credit: Non-Rated as not currently publicly traded *Last publicly available sales data announced in IPO Filing in July 2016 YETI is a rapidly growing designer, marketer, and distributor of premium products for the outdoor and recreation market. Products include heavy duty hard shell coolers, luxury soft shell coolers, cups and ramblers, and other smaller apparel items. Headquartered in Austin, Texas, YETI has over 300 employees and ships its products throughout the United States and to a select number of international countries. In 2012, YETI sold the majority of the company (67%) to Cortec Group, a New York private equity firm who has helped increase revenues over 748% in the first three years. Appealing to the American outdoorsman s needs of tough and rugged outdoor products, YETI has grown from its humble founding in 2006 to its potential valuation estimated at $5 billion. LEASE SUMMARY Rentable Square Feet: 168,923 Tenant: YETI Coolers, LLC Expense Reimbursement: NNN Commencement: July 2017 Term: 10 Years Annual Rental Rate Increase: 3% 4
AWARDS & RANKINGS 4.6 OUT OF 5 STARS AMAZON LASTS FOREVER BEST COOLER HANDS DOWN GRIZZLY STRENGTH! YETI: OFFICIAL PARTNER OF NASCAR LIFESTYLE WINNER 2017 SPORTING CLASSICS DAILY YETI TUNDRA COOLER IS BEST OF THE BEST BEST REVIEWS BEST COOLER FOR SUMMER FORBES.COM 2017 5
GROWING TENANT WITH ATTRACTIVE NET LEASE YETI operates in the premium product space and earns extremely high margins on their products, typically commanding prices 3-4x as high as their competition while remaining far and away the highest sellers. YETI reported 748% of growth between 2013 and 2015. YETI is poised to continue their staggering growth as they begin rolling out other products like water submersible duffel bags and utility buckets in addition to their best-selling coolers and tumblers. MISSION CRITICAL FACILITY Lantana Ridge is the Corporate Headquarters for Yeti and represents the sole office location for the company. In addition to the provided landlord allowance, YETI has spent a substantial amount of their own capital to design and build their creative and collaborative office environment. YETI SAW 748% GROWTH 2013-2015 6
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W. WILLIAM CANNON D DOWNTOWN AUSTIN (15 MINS.) BARTON CREEK GREENBELT ARM TECOMA MASTER-PLANNED COMMUNITY AMD SolarWinds SUMMIT AT LANTANA LANTANA PLACE RETAIL/HOTEL/MEDICAL OFFICE DEVELOPMENT (UNDER CONSTRUCTION) SOUTHWEST PKWY 8
HANOVER LANTANA HILLS INSTITUTIONAL QUALITY ASSET Completed in 2017, the YETI Headquarters at Lantana Ridge is a LEED Silver (pending approval), Class A office property located in the hills of Southwest Austin with views of lush green landscapes and downtown Austin. R RIALTO BLVD RIALTO I & II The office development features modern interior finishes, state of the art office space, and above market parking ratio as well as outdoor amenities such as a rooftop terrace, outdoor games area, jogging trails, an outdoor patio and kitchen, and barbecue pits. ACCESSIBLE SUBURBAN OFFICE LOCATION The Property is located along Southwest Parkway, the major connector of MoPac Expressway and Highway 71, two of Austin s largest transportation arteries and less than a 5-minute drive from Loop 360 and Highway 290. The Property s close proximity to Austin s most affluent in-fill neighborhoods, including West Lake Hills, Barton Creek, Spanish Oaks, Lakeway, Circle C Ranch, and Westgate, appeals to local executives who prefer to work close to home and is within minutes of Sunset Valley, Austin s largest collection of retail space. Stratus Properties is underway on an adjacent 300,000+ square foot mixeduse center which will provide walkable amenities including a movie theater, hotel, restaurants, retail, medical and office space. 9
ACCOLADES #1 City for Real Estate Investment - ULI #Fastest Growing City for 4th Consecutive Year - Forbes Top 5 Best Cities for New Jobs - Forbes NATION LEADING 28% EMPLOYMENT GROWTH 2010 2016 IN-MIGRATION POPULATIO AUSTIN TEXAS USA POPULATION GROWTH 2005-2016 41.8% 22.6% 9.7% 10
SUPERIOR OFFICE MARKET The Austin office market has become one of the nation s most robust, led by strong market fundamentals and record-setting population growth. Recently ranked by ULI as the #1 City for Real Estate Investment, Austin continues to mature into a highly diverse market, attracting top companies like Apple, Google, and Amazon. These drivers have landed Austin at the top spot on Forbes list of Americas Cities of the Future, ranking Austin as the top city in the country for future prosperity over the next decade. The Austin office market remains one of the best performing office markets in the country with occupancy levels of 92%, maintained through the 8.9 million square feet of deliveries since 2014 due to an influx and expansion of Austin s top companies. The Southwest submarket has become one of Austin s most sought after submarkets, with Class A rental rates increasing 39% since 2011, currently at $24.60 per square foot NNN. 11
ADDITIONAL INFORMATION If you have any questions or require additional information, please contact any of the individuals below. ANDREW LEVY Senior Managing Director alevy@hfflp.com 469-232-1961 TODD SAVAGE Managing Director tsavage@hfflp.com 469-232-1930 KELSEY ROOP Senior Director kroop@hfflp.com 512-532-1927 PATRICK MCCORD Associate pmccord@hfflp.com 512-532-1928 DOM ESPINOSA Analyst despinosa@hfflp.com 512-532-1934 www.hfflp.com 2323 Victory Ave Suite 1200 Dallas, TX 75219 214-265-0880 214-265-9564 500 West 5th Street Suite 1200 Austin, TX 78701 512-532-1900 512-532-1901 2017 Holliday Fenoglio Fowler, L.P. ( HFF ), HFF Securities L.P. and HFF Securities Limited (collectively, HFFS ) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 24 offices and is 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 sales, equity placement, advisory services, loan sales and commercial loan servicing. For more information, please visit hfflp.com or follow HFF on Twitter @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.