NORTHSTAR THE FALLS ON BULL CREEK CHESAPEAKE AN EXCEPTIONALLY WELL-LOCATED PORTFOLIO IN AUSTIN, TEXAS. INVESTMENT SUMMARY Holliday Fenoglio Fowler, L.P. ( HFF ) a Texas licensed real estate broker.
2 PORTFOLIO HIGHLIGHTS The three property, 668 unit offering provides immediate economies of scale to potential investors in three of Austin s top strongest submarkets. A true and proven value-add opportunity, only 31% of units have been renovated generating premiums up to $280/month. FALLS ON BULL CREEK X NORTHSTAR X CHESAPEAKE These excellent infill locations in North Austin are proximate to Austin s premier mixed use destinations at Domain, Arboretum and Lakeline Mall providing residents all the benefits of a live, work, play environment at a discount to newly built properties in the area. North/Northwest Austin is one of the foremost corporate destinations in the country with nearby tech conglomerates including Amazon, Apple, Facebook and Google fueling Austin s booming economy. PROPERTY NAME FALLS AT BULL CREEK NORTHSTAR CHESAPEAKE TOTAL/AVG. ADDRESS 8527 N Capital of Texas Hwy Austin, Texas 78759 12001 Metric Blvd Austin, Texas 78758 12300 Hymeadow Dr Austin, Texas 78750 YEAR BUILT 1984 1986 1984 1985 UNITS 344 200 124 668 % RENOVATED 40% 38% 17% 31% TOTAL SQUARE FEET 280,484 128,544 79,456 488,484 AVERAGE UNIT SIZE 815 643 641 731 OCCUPANCY (2/21/18) 91% 93% 91% 91.5% ACREAGE 30.38 7.56 4.03 41.97 SUBMARKET Northwest Central North Northwest
3 CEDAR PARK ROUND ROCK LAKELINE MALL Austin's Park N Pizza CHESAPEAKE Cinemark 20 and XD INVESTMENT OPPORTUNITY THE ARBORETUM Main Event Entertainment HEB Grocery Academy Sports Walmart Supercenter Whole Foods Market Costco Top Golf Target NORTHSTAR Home Depot The Shops at Arbor Walk THE FALLS ON BULL CREEK Gateway Shopping Center Holliday Fenoglio Fowler, L.P. ( HFF ) has been exclusively retained to offer the rare opportunity for qualified investors to purchase fee simple interest in the Austin 3 Portfolio (the Portfolio or Properties ), three multi-housing assets totaling 668 units in Austin, Texas. Positioned in Austin s most dynamic North- Northwest growth corridors and top performing submarkets, the Properties benefit from the booming population growth, affluent demographics, and world renowned tech employers of the surrounding area, including Apple, Amazon, Facebook, Google, Indeed, and IBM. Demand for the Portfolio is further bolstered by close proximity to the premier lifestyle amenities offered by the Domain, Lakeline and Arboretum mixed-use developments, as well as direct connectivity to Austin s main US 183, Loop 360 and Mopac thoroughfares. In addition to superior locational attributes, this unique offering presents investors an ideal value-add scenario as ownership has successfully upgraded approximate 30% of the units interiors, generating average rent premiums of 12%. Units receiving a high-end finish out have seen increases up to 25% over classic units demonstrating the upside in this portfolio offering. This allows investors to realize substantial gains in rental income by continuing this proven renovation program across the 1980 s-vintage Portfolio. Poised for long-term growth and value appreciation, the Austin 3 Portfolio provides a unique value-add investment opportunity in core plus locations in the most dynamic and fastest growing city in the United States. UNIVERSITY OF TEXAS DOWNTOWN AUSTIN
4 AUSTIN MARKET ECONOMIC STRENGTH Years of in-migration and explosive population growth, combined with tremendous employment increases, historically low unemployment, and continuous corporate relocations, has positioned Austin as one of the fastest growing and strongest economies in the nation. Future indicators suggest Austin will lead the nation in both population and employment growth for the next five and 10-year horizons. Furthermore, the population of Austin within the prime renter age of 18-34 (29%) is 6% higher than national average (23%), boding extremely well for Austin s long-term apartment market. THRIVING NORTH-NORTHWEST AUSTIN LOCATIONS Providing direct access to major employment hubs, surrounding lifestyle and entertainment amenities, and connectivity to downtown, the Properties are located in the most desirable neighborhoods in the metro area with high profile tenant demographics. THE FALLS AT BULL CREEK Prominently situated along Bull Creek Greenbelt with exceptional visibility from Capital of Texas Highway (Loop360), Falls at Bull Creek spans 30 acres in a pristine hill country setting. Located at the door step of the upscale mixed-use Arboretum development, the Property offers direct access to over a million square feet of retail and 650,000 square feet of Class A office space. In addition, Falls at Bull Creek is a short drive to Gateway Shopping Center (30 retailers, 500,000+ SF), Shops at Arbor Walk (30 retailers, 450,000+ SF), Davenport Village, and the HEB-anchored Villages at Westlake at the corner of Loop 360 and Bee Caves Road. Situated in Austin s premier Northwest Hills neighborhood, the Property offers a highly coveted address due to the incredible affluence of the surrounding demographic, rising home values and the significant barriers to entry for any new multifamily development in area.
5 EXECUTIVE SUMMARY NORTHSTAR Prominently located on Metric Boulevard between the heavily traveled Parmer/Mopac and Parmer/IH-35 intersections, Northstar offers rapid connectivity to Austin s main thoroughfares and largest employment hubs including the Domain (five minutes), Arboretum (8 minutes) and Downtown (20 minutes). The Domain and Arboretum mixed-use developments combined encompass six million square feet of commercial space featuring Austin s largest corporate users and technology tenants (Amazon, Google, Apple, Oracle, IB, etc.), representing North Austin s undisputed economic engine. The Property is also walking distance from the Big Walnut Creek Greenbelt, providing immediate access to hiking and walking trails that link the Balcones District Park to Walnut Creek Metro Park. Affordability and access to all areas of Austin have made this infill location incredibly desirable for young professionals, families and students. CHESAPEAKE Chesapeake is ideally situated between the Domain and the Lakeline Shopping District, featuring more than 4.5 million square feet of luxury and need based retail offerings at Lakeline Mall (HEB Plus, Best Buy, PetSmart, Macys, Alamo Draft House), Lake Creek Shopping Center (Hobby Lobby, Burlington, Lake Creek Theatres), and Parkline Shopping Center (Home Depot, Target). The property is five minutes from the Lakeline MetroRail station as well as the highly trafficked SH 45/US 183 intersection with 140,000 VPD and facilitating easy access for residents north/south/east/ west. Chesapeake s Northwest Austin address is among one of the foremost corporate locations in the country given its tremendous expansion in the tech sector, providing the strongest employment story outside of the CBD. The Northwest office submarket is Austin s largest with an impressive 17 million square feet and features some of the world s largest technology companies located within a few miles of the Property: Apple, Amazon, Facebook, Google, Homeaway, IBM and National Instruments.
6 HIGH PROFILE DEMOGRAPHICS Driven by North-Northwest Austin s strong tech presence and unmatched entertainment and lifestyle offerings, the immediate area surrounding the Properties has experienced 14% population growth since 2010, with rapidly increasing household income and home values currently averaging $123,000 and $393,000, respectively. These demographic are well above the Austin and National averages and should continue to improve as Austin s relatively young residents continues to relocate to North-Northwest Austin. POPULATION GROWTH 2010-2018 BACHELOR S DEGREE OR HIGHER WHITE COLLAR OCCUPATION HOUSEHOLD INCOME AVERAGE OWNER-OCCUPIED HOUSING VALUE MEDIAN CHESAPEAKE Within a 5-mile Radius 23.1% 56.1% 80.1% 122K 303K $122,403 $303,364 THE FALLS AT BULL CREEK Within a 1-mile Radius 12.1% 70.1% 82.7% 120K 478K $120,390 $478,431 NORTHSTAR Within a 5-mile Radius 16.6% 43.1% 65.3% 89K 242K $88,973 $242,298 CHESAPEAKE: OVER THE NEXT FIVE YEARS, THE POPULATION IS PROJECTED TO GROW BY 10.1% THE FALLS AT BULL CREEK: OVER THE NEXT FIVE YEARS, THE POPULATION IS PROJECTED TO GROW BY 8.1% NORTHSTAR: OVER THE NEXT FIVE YEARS, THE POPULATION IS PROJECTED TO GROW BY 8.3%
7 IDEALLY POSITIONED VALUE-ADD OPPORTUNITY The Portfolio offers perfectly positioned assets ripe for a value-add finish out. Approximately 65% of the units across the Portfolio are classic units, untouched by current ownership, while the remaining units have multiple levels of finish outs capturing the entire renter market. Only 3% on the entire portfolio has received a high-end renovations, of which have received rent increases of $250 per month over classic units. This provides investors ample opportunity to renovate the majority of the unit interiors and experience a significant increase in NOI by taking advantage of the pent up rental demand for high end finish outs in these three excellent locations.
MATT POHL Senior Director 512.532.1929 mpohl@hfflp.com FORREST BASS Senior Director 512.532.1964 fbass@hfflp.com FALLS ON BULL CREEK X NORTHSTAR X CHESAPEAKE AN EXCEPTIONALLY WELL-LOCATED PORTFOLIO IN AUSTIN, TEXAS. SEAN SORRELL Senior Managing Director 512-532-1924 ssorrell@hfflp.com SPENCER ROY Analyst 512.532.1977 sroy@hfflp.com SEAN WOLFF Analyst 512.532.1954 swolff@hfflp.com Debt Contact CASEY WENZEL Senior Director 512.532.1923 cwenzel@hfflp.com HFF has been engaged by the owner of the properties to market them for sale. Information concerning the 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. The information contained herein is subject to change.