ONE NORTHWIND PLAZA Houston, Texas
The Offering JLL Capital Markets, as exclusive advisor to the owner of 7600 West Tidwell ( The Property ), is pleased to present the opportunity to acquire the feesimple interest in the 141,480 square foot Class B office building prominently located in the Highway 290 Corridor of Houston, Texas. The Property benefits from being highly visible and accessible from both the intersection of West Tidwell and Highway 290, and Hollister Street and Highway 290. The Property is institutionally owned and maintained, with recent capital improvements totaling in excess of $1.0 million and very little ongoing capital needs. The Property Address MSA Submarket Building Class 7600 W. Tidwell Houston, TX 77040 Houston-Sugar Land-Baytown Northwest Houston Class B Square Footage 141,480 Leased 71.4% Floor Plates 18,000 RSF The Property is one of the top three buildings in the submarket and at 71.4% leased today, the Offering provides a unique value add opportunity with significant upside at a significant discount to replacement cost. Year Completed Site Size (approximate) Parking Spaces 1980 / 2006 (renovated) 3.0 acres 510-489 garage, 21 surface Parking Ratio 3.6/1,000 1 ONE NORTHWIND PLAZA // OFFERING MEMORANDUM
INVESTMENT HIGHLIGHTS Financial Highlights Lease Expiration Diverse rent roll with resilient and stable industry composition. The average tenant size is approximately 6,618 sf, offering a cash flow that is isolated from reliance on any single tenant or industry. 71.4% leased with an average remaining term of 3 years and average in-place rents of $17.33 psf, offering a substantial value-add proposition. In-place rents are near market, allowing for tangible mark-to-market rent growth at starting rents that will not result in sticker shock. The largest five tenants make up 61% of the in-place occupancy (43.5% of NRA), have 3.4 years of average remaining term, and an average in-place rent of $17.25 psf. Speculative revenue is modeled conservatively with only 30,000 square feet being absorbed over a 36-month period (7.4% static vacancy). Significant NOI growth despite very conservative rent growth, absorption, property tax, and market leasing assumptions. 45,000 SF 40,000 SF 35,000 SF 30,000 SF 25,000 SF 20,000 SF 15,000 SF 10,000 SF 5,000 SF 0 SF 39,915 SF 21,511 SF 12,955 SF 9,366 SF 8,148 SF 7,382 SF FY 1 FY 2 FY 3 FY 4 FY 5 FY 6 SF Exp. Annually % Exp. Cumulatively 120% 100% 80% 60% 40% 20% 0% ONE NORTHWIND PLAZA // OFFERING MEMORANDUM 2
Strategic, Ever-Improving Location The completion of the Highway 290 construction will transform the Northwest office market, providing unparalleled access to Houston s stable and growing population in North and Northwest Houston. One Northwind Plaza will be a major benefactor of this highway transformation, offering tenants shorter commutes and lower occupancy costs than competing submarkets. The overall vision for the U.S. 290 Project includes freeway capacity reconstruction and widening from IH 610 to FM 2920. Five/six general-purpose lanes in each direction from IH 610 to just west of State Highway 6, plus auxiliary lanes where appropriate Four general-purpose lanes in each direction from just west of State Highway 6 to near State Highway 99 (Grand Parkway), plus auxiliary lanes Three general-purpose lanes in each direction from near Grand Parkway to the west study limit, plus auxiliary lanes Two- or three-lane frontage roads in each direction throughout the corridor A four-lane, two-way managed lanes facility along Hempstead Tollway from IH 610 to Grand Parkway Two non-tolled frontage road lanes in each direction to be reconstructed along Hempstead Tollway from IH 610 to Beltway 8 Two non-tolled frontage road lanes in each direction to be reconstructed along Hempstead Tollway from IH 610 to Beltway 8 Proposed high-capacity transit corridor located along Hempstead Tollway Proposed high-capacity transit corridor located along Hempstead Tollway CONSTRUCTION PROGRESS Project K 97% complete Project E 50% complete Project J-2 72% complete Project D 79% complete Project J-1 91% complete Project C-1 67% complete Project I 75% complete Project C-2 76% complete Project H 66% complete Project B 57% complete Project G 91% complete Project A 74% complete Project F 61% complete Please visit http://www.my290.com for a complete description of the US 290 expansion program 3 ONE NORTHWIND PLAZA // OFFERING MEMORANDUM
Significant Capital Improvements The Property has been well-maintained by institutional ownership, who has invested significant capital improvements totaling over $1million over the last four years. With all of the necessary capital improvements substantially completed and very low historical leasing costs, One Northwind Plaza provides attractive cashon-cash yields and value-add potential. Incomparable Accessibility One Northwind Plaza is strategically located near the intersection of Highway 290 and both West Tidwell (a major east/west thoroughfare) and Hollister Street (a major north/south thoroughfare). West Sam Houston Parkway (Beltway 8), an 88 mile beltway around the City of Houston, is three miles or approximately four minutes west of the Property. This location offers the best access and visibility in the Northwest office market, remarkable access in and out of the city, and is convenient to all of Houston s major business centers. Downtown Houston and the Galleria area are accessible within a convenient 10-minute drive. Within a 5-mile radius are abundant eateries, retail, and services, saving tenants and residents valuable time and effort. These factors position the Property as a low-cost alternative to nearby submarkets, and allow One Northwind Plaza to be a market-leader in terms of rental rates, occupancy, and tenant retention. In June 2011, construction began at the IH 610 / U.S. 290 interchange that will change the landscape of central Houston for the better. As of Q2 2017, the IH 610 / U.S. 290 interchange is substantially complete, offering improved drive times to the Galleria, CBD, Memorial City, and Energy Corridor with far less congestion. Capital Invested - 2010-2017 2010-2017 Fire Sprinklering Lighting Retrofit $ 175,000 187,500 2013 Lobby Directory 13,000 2014 Breezeway Refurbished w/new Canopy & Lighting 59,000 2015 Automated Logic Web Based System 12,000 2016 Elevator Modernization LED Signage on Building Eyebrow 525,000 42,000 TOTAL $1,013,500 ONE NORTHWIND PLAZA // OFFERING MEMORANDUM 4
Amenities for the Property include: On-site management On-site conference room and deli On-site security - 24 hour/day Card key after-hours access Convenient shopping, restaurants and hotels Excellent Northwest Freeway location near West Sam Houston Parkway and Loop 610 World class fitness center just steps away Signage available Model suites ready for move-in Garage parking with covered access to the building Excellent access Free visitor parking in front of building 5 ONE NORTHWIND PLAZA // OFFERING MEMORANDUM
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Further information is available from the seller's exclusive representatives: Rudy Hubbard Managing Director +1 713 425 5853 rudy.hubbard@am.jll.com Kevin McConn Senior Vice President +1 713 425 5839 kevin.mcconn@am.jll.com Rick Goings Vice President +1 713 425 5855 rick.goings@am.jll.com 1400 Post Oak Blvd., Suite 1200 Houston, TX 77056 9 ONE NORTHWIND PLAZA // OFFERING MEMORANDUM