SECTION SUMMIT PARK A SOUTHEAST COMMERCIAL CENTER CAMERON CREEK BUSINESS PARK INVESTMENT SUMMARY 1
EXECUTIVE SUMMARY AUSTIN FLEX PORTFOLIO HFF has been exclusively retained by the Owner to offer qualified investors the unique opportunity to purchase the Austin Flex Portfolio ( The Portfolio ), featuring three flex buildings totaling 137,635 square feet in Austin, Texas. Comprised of Cameron Creek Business Park, Southeast Commercial Center and Summit Park A, the Portfolio represents three well-maintained properties with tremendous value enhancement potential in one of the fastest growing and most desirable cities in the United States. With two of the Properties fully occupied, the Portfolio provides a stable cash flow base and tenant mix along with a value-add opportunity through the lease up Summit Park A, which is currently 38% leased. Located in Austin s highperforming Northeast, Southeast and North industrial submarkets, the Portfolio also offers locational diversity with exceptional accessibility to key thoroughfares and business centers throughout the city. The Portfolio is being presented on a portfolio, sub-portfolio or individual asset basis. Building Name Cameron Creek Business Park Southeast Commercial Center Summit Park A Totals Address 9210 Cameron Road, Austin, 4120 Commercial Center Drive, 14050 Summit Drive, Austin, Texas 78754 Austin, Texas 78744 Texas 78728 Various RBA 50,021 34,514 53,100 137,635 Site (Acres) 4.8 3.3 5.6 13.6 Year Built 1996 1984 1985 Various Occupancy 100% 100% 37.5% 75.9% % Office ± 34% ± 75% ± 75% ± 60% Loading Doors 12 10 24 46 Loading Type Dock-High Semi-Dock Grade-Level Various Clear Height 22' 16' 14' Various Parking 3.02:1,000 SF (151 spaces, 6 handicap) 3.53:1,000 SF (122 spaces, 8 handicap) 3.77:1,000 SF (200 spaces, 6 handicap) 3.44:1,000 SF (473 spaces, 20 handicap) Number of Tenants 4 6 2 12 Average Remaining Lease Term (Yrs.) 4.01 2.28 4.73 3.58 2
EXECUTIVE SUMMARY INVESTMENT HIGHLIGHTS VALUE ENHANCEMENT OPPORTUNITIES Currently 100% occupied, Cameron Creek and Southeast Commercial provide a stable cash flow stream while Summit Park A provides a value-add opportunity. Due to recent repairs at Summit Park, the low occupancy allows an investor to fill large vacancies in an increasing rental rate environment. Combined Portfolio occupancy of 76% provides an immediate value enhancement opportunity through the lease up of the remaining 33,178 square feet of vacancy at Summit Park in the strong North industrial submarket that boasts an average historical occupancy of 96% The Portfolio s NOI is expected to increase 66% over the next three years through contractual rent increases, rolling the existing leases to market rental rates and lease up of the remaining vacancy With 3.6 years of weighted average lease term remaining and in-place rents of $8.78 PSF NNN that are 15% below market, future ownership has an opportunity to execute new or renewal leases at increased market rates INSTITUTIONAL QUALITY OWNERSHIP Current ownership has maintained the Portfolio to institutional standards NNN leases provide ease of ownership with minimal maintenance and management Austin s Northeast, North and Southeast industrial markets are highlydesired locations which is evidenced by the significant presence of institutional ownership holding assets in these markets including: Agellan, Colony Capital, Cornerstone, Deutsche Asset and Wealth Management, DRA Advisors, Exeter Property Group, GLP, Prologis, Industrial Property Trust, Prudential, and TA Associates Realty 3
EXECUTIVE SUMMARY ROUND ROCK BRUSHY CREEK LAKELINE 1 WELLS BRANCH JOLLYVILLE WES ANDERSON MILL T PA RM ER LA WE L L S B A N C H PAR K R W AY PFLUGERVILLE NE SUMMIT PARK A ND BE RG NORTHWEST HILLS L AN RO AD D ESS A RU U THE DOMAIN E CRESTVIEW CAMERON CREEK BUSINESS PARK HIGHLAND WESTLAKE HILLS MUELLER A IR P O R TARRYTOWN U T BO LEV AR WESTLAKE D DOWNTOWN The buildings are situated in established, infill industrial markets and benefit from proximity to significant demand drivers and major transportation arteries, including Interstate 35, the NAFTA highway. Due to the limited supply of available development sites in these prime infill locations, continued upward pressure on occupancy and rental rates is anticipated. Southeast Commercial Center provides incredible access to Interstate 35 (< 1 mile) and Austin-Bergstrom International Airport, located only four miles east along State Highway 71 As part of Austin s North industrial submarket, Austin s largest, Cameron Creek s location provides easy access to State Highway 183 & recently renovated Highway 290 and Interstate 35 as well as some of Austin s fastest developing residential neighborhoods Summit Park A is situated near Austin s largest major freeways, Interstate 35, Mopac Expressway (Loop 1) and SH 45 as well as being in the center of Austin s burgeoning northern residential areas (Cedar Park, Round Rock, Georgetown and Plugerville) as well as 2 miles from The Domain - Austin s second downtown - a 304-acre mixed use development with 200+ upscale retailers & restaurants, 1.9 million square feet of office and 2,500 multifamily units EAST AUSTIN SOUTH AUSTIN EAST RIVERSIDE Austin International Airport SOUTHEAST COMMERCIAL CENTER ACCESSIBILITY AND IN-FILL LOCATIONS SUBMARKET HIGHLIGHTS The Properties are located in Austin s three largest submarkets comprising 49% of the overall industrial market and 57% of the overall flex market. Demand is expected to remain high as they currently outperform the Austin industrial market with an occupancy of 96% The Portfolio s submarkets experienced 525,862 SF of net absorption in the first half of 2016 compared to -326,461 SF of net absorption in the rest of the market during the same period 4
EXECUTIVE SUMMARY THRIVING AUSTIN ECONOMY Austin has experienced population and employment growth at unprecedented levels and consistently ranks as one of the nation s top economic performers, due to high quality of life, low cost of living, low business costs and tax burden, high per capita incomes, diversified economy and highly skilled workforce. For the fifth year in a row, the Austin area is the fastest growing metro nationally with a population of approximately 2.1 million residents and is estimated to grow by 35% over the next ten years. These key dynamics coupled with the unprecedented population growth will allow Austin to remain a top metropolitan area in the United States for years to come. POPULATION GROWTH 2010-2015 AUSTIN TEXAS USA 13.2% 7.2% 3.3% NATION LEADING 42.3% EMPLOYMENT GROWTH 2003 2015 # OF AUSTIN CORPORATE RELOCATIONS SINCE 2004 5
Debt Contact: JOHN TAYLOR KELSEY ROOP RUSTY TAMLYN TRENT AGNEW MICHAEL RESTIVO CHRIS BARRY CASEY WENZEL Managing Director Director Senior Managing Director Director Analyst Analyst Director jtaylor@hfflp.com kroop@hfflp.com rtamlyn@hfflp.com tagnew@hfflp.com mrestivo@hfflp.com cbarry@hfflp.com cwenzel@hfflp.com 210.386.0080 512.532.1927 713.852.3561 713.852.3431 512.532.1974 512.532.1957 512.532.1923 HFF has been engaged by the owner of the propertits 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.