Holliday Fenoglio Fowler, L.P. ( HFF ) a Texas licensed real estate broker. INVESTMENT SUMMARY AUSTIN, TEXAS
2 EXECUTIVE SUMMARY HFF is pleased to offer investors the opportunity to purchase The Cameron Center, (the Property ), a three-building office park along US Highway 183 and Cameron Road in the emerging Upper Eastside submarket. Currently 71% leased primarily as executive suites, the 123,730-square foot office park presents numerous valueadd opportunities allowing a potential buyer to increase occupancy through focused leasing efforts, convert the Property to a traditional multi-tenant asset, or sell-down to owner-occupants. The offering provides an investor a rare opportunistic investment opportunity within a rapidly changing submarket in one of the most dynamic and fastest growing cities in the United States. RARE OPPORTUNISTIC INVESTMENT OPPORTUNITY BELOW REPLACEMENT COST ACQUISITION NEAR TERM ABILITY TO VACATE & REPOSITION TENANCY EMERGING UPPER EASTSIDE SUBMARKET THRIVING AUSTIN ECONOMY PROPERTY OVERVIEW ADDRESS 7901 Cameron Road Austin, Texas 78754 TOTAL RBA ± 123,730 SF BLDG 1 ± 16,202 SF BLDG 2 ± 49,319 SF BLDG 3 ± 58,209 SF % LEASED ± 71% YEAR BUILT/ 1986/2017 RENOVATED SITE ± 4.38 Acres STORIES Bldg. 1 - Two (2) Bldg. 2 - Three (3) Bldg. 3 - Three (3) PARKING RATIO 3.2:1,000 (395 surface spaces)
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4 INVESTMENT HIGHLIGHTS RARE OWNER-OCCUPANT OR OPPORTUNISTIC INVESTMENT OPPORTUNITY The Cameron Center currently operates primarily as executive suites leased to individual businesses with short term lease agreements, offering the ability to lease up to market occupancy levels in a standard fashion and adjust rents based on market demand which can exceed standard per square foot rates The vast majority of leases include 30-90-day landlord termination options, giving investors maximum flexibility to execute a new business plan The existing condo regime is 100% controlled by current ownership, giving a new owner the opportunity to sell-down portions of the property to owner-occupants or other investors Each individual floor in Building 3 is currently separated into a condominium unit, allowing for new ownership to sell down individually or remove the condo structure altogether BELOW MARKET IN-PLACE RENTS AND OCCUPANCY The Cameron Center rents are currently $17.02 per square foot gross (± $9.35 NNN), which is approximately 86% below the Northeast office submarket average rental rate of $17.45 NNN With a below-market occupancy rate of 71%, the Property offers a unique opportunity to implement an effective management and leasing program to increase occupancy The near-term ability to vacate tenants, coupled with varying tenant sizes presents value creation opportunities while allowing tenants the ability to grow or downsize An increase in occupancy to a market level of approximately 92% represents an additional $437,000 in rental revenue or an increase of 30%
5 FRACTION OF REPLACEMENT COST ACQUISITION At under $150 per square foot, The Cameron Center represents a well-below replacement cost acquisition, with new office construction costs estimated to be $350-$400 per square foot Limited available development sites in the immediate vicinity provide future barriers to entry, strong market conditions and income security Rebranding by ownership has led to recent capital improvements including renovated entryways, office spaces, and elevators
6 THE ARBORETUM THE DOMAIN 1.8 MM SF Retail 1.9 MM SF Office 2,800 Apartments 775 Keys in 4 Hotels ACC HIGHLAND 81-acre mixed-use development 4M SF of commercial & residential space Anchored by Austin Community College Enrollment of 6,000 students at completion THE UNIVERSITY OF TEXAS 51,000 Students 5th Largest University in the U.S. 62% Application Growth in 10 Years #16 US News Public University Rating INNOVATION DISTRICT 600,000 SF UT Medical School 500,000 SF Teaching Hospital 17,000+ Jobs in various entrepreneurial fields MUELLER MARKET DISTRICT 700-Acre Master-Planned Community 2 Million SF Commercial/Institutional 2,600 Homes Completed Dell Children s Medical Center (145,000 annual visitors) The Thinkery Museum (600,000 annual visitors) DRIVE TIMES TO/FROM 8 9 10 11 12 12 13 16 17 ACC Highland Arboretum Mueller Market District Innovation/ Hospital District University of Texas The Domain CBD Round Rock Austin Bergstrom Intl. Airport
7 AUSTIN S EMERGING UPPER EASTSIDE Located along Cameron Road and US Highway 183, one of Austin s main thoroughfares, the Property offers outstanding building signage opportunities with highway visibility. Austin s Northeast office submarket, historically a magnet for value-office tenants, is experiencing explosive growth and rapid repositioning due to numerous nearby mixed-use destinations: Highland/ACC Anchored by Austin Community College, enrollment can reach 6,000 students at completion and the overall vision projects 3.29 million square feet of office, retail, hotel, residential, and affordable housing Mueller An award-winning 770-acre redevelopment of the Robert Mueller Municipal Airport consisting of 2 million square feet of commercial space and 2,600 homes Domain Austin s largest mixed-use development projected to exceed 6,000 residents and 17,500 employees this decade The Property s location affords easy access to major business centers such as Walnut Creek and residential areas across Austin due to easy access to major thoroughfares: US Highway 183, US Highway 290, Interstate 35 and State Highway 130 Toll Road Toll lane construction on US Highways 290 and 183 offers streamlined access to all parts of the city, including the benefits of Project 183, which is Austin s $743M infrastructure expansion of US Highway 183 which will facilitate easy access from the Property to Austin Bergstrom International Airport
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9 ROBUST AUSTIN MARKET FUNDAMENTALS Austin is the #2 City for Real Estate Investment, ULI (2018) Fastest Growing City in the Country Forbes Top Five Best Cities for New Jobs for the fourth year in a row Forbes 157 people moving to the city per day Austin Chamber Over 30,000 new jobs added in 2017 and over 62,000 new jobs expected over the next two years Unemployment rate of 2.9%, vs. 4.1% in Texas and 4.0% nationwide Silicon Hills one of the nation s preeminent locations for technology 125,000+ employees and 5,000+ technology companies Recent major expansion & relocation announcements from companies such as Indeed, Oracle, Dell, Apple, Google, ebay, Amazon, Expedia, Samsung, Charles Schwab and many more major national and international companies
DEAL TEAM DREW FULLER Director T: 512-532-1931 dfuller@hfflp.com CATHY NABOURS Managing Director T: 512-532-1962 cnabours@hfflp.com WALTER SAAD Managing Director T: 512-532-1961 wsaad@hfflp.com ANALYTICAL SUPPORT DOM ESPINOSA T: 512-532-1934 despinosa@hfflp.com SCHAFER SMARTT T: 512-532-1971 ssmartt@hfflp.com DEBT CONTACT KYLE SPENCER T: 512-532-1921 kspencer@hfflp.com 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 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. AUSTIN, TEXAS