OFFERING SUMMARY
2700 BARTON CREEK BLVD BARTON CREEK VILLAGE AUSTIN, TX 78735
Holliday Fenoglio Fowler, L.P. (“HFF”) a Texas licensed real estate broker. BARTON CREEK VILLAGE
HFF is pleased to offer the opportunity to purchase Barton Creek Village (the “Property”), a two-story mixed-use retail and office building located in the rolling hills of Southwest Austin, Texas. Situated at the corner of Barton Creek Boulevard and Wimberly Lane, Barton Creek Village is surrounded by the city’s most affluent neighborhoods including the prestigious Barton Creek master planned community comprised of over 1,000 luxury homes (ranging from $500,000 to over $20 million), FOR THE SECOND YEAR a 4-star resort & spa, four championship golf courses and numerous senior living IN A ROW, AUSTIN HAS communities. Currently 63% leased to a mix of national, regional and local tenants at below BEEN NAMED market rental rates, the 22,366-square foot building features quality finishes with a desirable tenant mix including service-oriented and necessity-based retailers and a variety of office tenants primarily focused on serving the surrounding #1 BEST PLACE TO community. The offering provides an investor the opportunity to establish an unmatched presence in one of the strongest submarkets of one of the most LIVE IN THE U.S. dynamic and fastest growing cities in the United States. 2017 & 2018 Source: U.S. News and World Report
2 BARTON CREEK VILLAGE DEAL TEAM EXECUTIVE SUMMARY HIGHLIGHTS PROPERTY DESCRIPTION • Significant value-add opportunity with 50% NOI growth projected over the next 5 years PROPERTY SUMMARY Pricing: $8,000,000 ($357/PSF) • 8,230 square feet of vacancy coupled with in-place rent 6.7% Property: 2700 Barton Creek Blvd Austin, TX 78735 below market, presents the opportunity for an additional $237,360 in annual revenue Size: 22,366 SF Acreage: +/- 4.1 Acres • Surrounded by Austin’s most prestigious neighborhoods Occupancy: 63% • Located in Austin’s superior southwest submarket Year Built: 2006 Parking: 7.2/1000 (132 total spaces, 29 of which are covered)
DEMOGRAPHICS 1 MILE 3 MILES 5 MILES POPULATION 2018 Estimate 3,456 21,889 86,928 % Change 2010 to 2018 24.68% 20.03% 19.57% EDUCATION Bachelor’s Degree or Higher 7 7.61% 74.19% 69.66% Average Household Income $252,989 $222,874 $182,261
TENANT OVERVIEW TENANT SF % OF GLA LXP FM Services Company 3,790 16.9% Jan-21 WB Dry Cleaning 1,106 4.9% Jul-22 512 Nails 1,279 5.7% Nov-22 Kuper Sotheby’s 1,848 8.3% Jun-23 The Market 3,671 16.4% Jul-24 Dr. John Schiro 2,442 10.9% Nov-24 Vacant (1) 1,750 Vacant 2,729 Vacant 3,751 TOTAL 22,366 63.2% (1) Lone Star Eye is modeled vacant, but will be vacating Dec-18.
FINANCIALS OFFICE & RETAIL OVERVIEW ECONOMIC OVERVIEW BARTON CREEK VILLAGE 3 $26 93%
$24 92%
$22 91%
$20 89%
$18 88%
$16 87%
$14 86%
$12 84%
$10 83% 2010 2011 2012 2013 2014 2015 2016 2017 2018 YTD
Southwest Austin Austin Occupancy
$30 100%
$28 99%
$26 97%
$24 96%
$22 94%
$20 93%
$18 91%
$16 90%
$14 88%
$12 87%
$10 85% 2010 2011 2012 2013 2014 2015 2016 2017 2018 YTD
Austin Southwest Austin Occupancy
$26
$24
$22 $20
$18
$16
$14 $12
$10
$8
$6 $4
$2
0 2010 2011 2012 2013 2014 2015 2016 2017 2018 YTD
Southwest Austin Northwest
4,500,000
4,000,000
3,500,000
3,000,000
2,500,000
SIGNIFICANT2,000,000 VALUE-ADD OPPORTUNITY
1,500,000
• 63%1,000,000 leased with 5-year weighted average remaining lease term provides stable
near-term500,000 cash flow and value enhancement through execution of new leases at increased market rates 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 YTD • In-place rental rates are 6.7% below market, coupled with lease-up of 8,230 HIGHLIGHTS square feet of vacancy presents theAbsorption opportunityCompletions for an additional $237,360 in annual450,000 base rent
400,000
• 1st350,000 floor vacancy (1,745 sf) presents an opportunity to re-tenant the space with a
restaurant300,000 user, who would be further enhanced by the expansive outdoor patio • The250,000 property’s NOI growth is projected to be 50% from years 1 through year 5, 200,000
and150,000 20% from year 5 through year 10
100,000
50,000
0
-50,000
2010 2011 2012 2013 2014 2015 2016 2017 2018 YTD
NOI GROWTHAbsorption Completions
$800,000
$600,000
$400,000
$200,000
0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
50% (Years 1-5) 20% (Years 5-10)
4 BARTON CREEK VILLAGE DEAL TEAM EXECUTIVE SUMMARY HIGHLIGHTS PROPERTY DESCRIPTION IRREPLACEABLE SOUTHWEST LOCATION
• Located at the corner of Barton Creek Boulevard and Wimberly Lane amidst the rolling hills of southwest Austin with scenic Hill Country views
• Multiple greenbelts preserve natural setting and severely limit future development in the area
• Bee Caves Road (RM 2244) and Southwest Parkway are two of the major East/West arteries for Southwest Austin, offering access to downtown in 20 minutes
• Highly amenitized location within a short distance to the 800,000-square foot Hill Country Galleria and AAA four-diamond rated hotel Omni Barton Creek Resort & Spa
• Surrounded by Austin’s most prestigious neighborhoods including Barton Creek, West Lake Hills, Rob Roy, Davenport, and Rollingwood
• Average housing value in 1-mile radius is $936,531 with homes ranging from $800,000 to $8 million
• Average household income in 1-mile radius is $252,989 with a population of 3,456 and an expected growth of 11.40% between 2018-2022
AVERAGE HOUSING VALUE WITHIN A 1 MILE RADIUS $936,531 WITH HOMES RANGING FROM $800,000 TO $8 MILLION
FINANCIALS OFFICE & RETAIL OVERVIEW ECONOMIC OVERVIEW BARTON CREEK VILLAGE 5 UNIVERSITY OF TEXAS
DOWNTOWN AUSTIN HOTEL GRANDUCA DIMENSIONAL FUND ADVISORS
APPLE BEE CAVES ROAD
OMNI BARTON CREEK RESORT & SPA
BARTON CREEK COUNTRY CLUB
QUERENCIA AT BARTON CREEK
BARTON CREEK
BARTON CREEK VILLAGE
ST. GABRIEL'S CATHOLIC SCHOOL
ST. MICHAEL'S CATHOLIC ACADEMY
B AR TON CRE EK BLVD
6 BARTON CREEK VILLAGE DEAL TEAM EXECUTIVE SUMMARY HIGHLIGHTS PROPERTY DESCRIPTION FINANCIALS OFFICE & RETAIL OVERVIEW ECONOMIC OVERVIEW BARTON CREEK VILLAGE 7 RARE NEIGHBORHOOD MIXED-USE ASSET
• High quality mixed-use office and retail building featuring a diverse mix of national, regional, and local tenants that drive continuous traffic to Barton Creek Village
• 10,248 square feet of first floor retail contributes a diverse internet resistant and necessity-based merchandising mix to the surrounding affluent neighborhoods, including the adjacent upscale senior living community, Querencia
• The 12,118 square feet of second floor office space includes a variety of industries including financial advising and international real estate
• Timeless Hill Country design features include roughhewn local limestone façade, black granite tile lobby floors, and floor-to-ceiling glass
• Meticulously landscaped 4.1-acre site
• Above market 7.2: 1,000 covered and surface parking TOP PERFORMING SUBMARKET
• Southwest Austin’s office and retail submarkets continue to grow into some of Central Texas’ top performing submarkets
• Record setting retail occupancy at 97.3% across the Southwest retail submarket
• Office and retail rental rates outperform the Austin MSA and Northwest submarkets, currently averaging $24.50 per square foot NNN (office) and $27.88 per square foot NNN (retail)
• Highly constrained development corridor – prohibitive land costs, impervious coverage restrictions, stringent zoning standards, and lack of available sites limit future development in the area
• Continued high-tech expansion of the following employers:
8 BARTON CREEK VILLAGE DEAL TEAM EXECUTIVE SUMMARY HIGHLIGHTS PROPERTY DESCRIPTION NATION LEADING ECONOMY
• Austin Is The “#1 City for Real Estate Investment,” – ULI
• “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
• 30,000 new jobs added in 2017
• Unemployment rate to 2.8%
• “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, Apple, Google, Ebay, Amazon, Expedia, Samsung, Charles Schwab and many more major national companies
13,000 6,000 6,000 EMPLOYEES EMPLOYEES EMPLOYEES
5,000 3,500 2,000 EMPLOYEES EMPLOYEES EMPLOYEES
FINANCIALS OFFICE & RETAIL OVERVIEW ECONOMIC OVERVIEW BARTON CREEK VILLAGE 9 CONTACTS
WALTER SAAD CATHY NABOURS Managing Director Managing Director T: 512-532-1961 T: 512-532-1962 [email protected] [email protected]
DREW FULLER DOM ESPINOSA Director Analyst T: 512-532-1931 T: 512-532-1934 [email protected] [email protected]
SCHAFER SMARTT CHRIS MCCOLPIN Analyst Senior Director T: 512-532-1971 T: 512-532-1941 [email protected] [email protected]
BARTON CREEK VILLAGE
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.