2304 Leon Street, Austin, TX 78705 (“Property”)
OFFERING MEMORANDUM 2304 LEON STREET
AUSTIN, TX 2304 LEON ST
AUSTIN, TX
EXCLUSIVELY LISTED BY
HAYDEN SCHNIEDERS Associate - Multifamily DIRECT: +1 (512) 535-1621 MOBILE: +1 (214) 364-5988 [email protected] License No. 742423 (TX)
WILL COLLIER Associate - Multifamily DIRECT +1 (512) 535-0604 MOBILE +1 (832) 474-8842 [email protected] 2304 License No. 743165 (TX) LEON STREET
JORDAN VAUGHN Associate - Multifamily DIRECT +1 (512) 535-1615 MOBILE +1 210 789 0226 [email protected] License No. 742372 (TX) LEON ST BROKER OF RECORD Kyle Matthews License No. 9005919 (TX) W. 24th ST TABLE OF CONTENTS
PROPERTY 03 SUMMARY
FINANCIAL 09 SUMMARY
AREA 2304 22 OVERVIEW LEON STREET
LEON ST
W. 24th ST 2304 LEON ST
AUSTIN, TX PROPERTY HIGHLIGHTS
OPPORTUNITY • Price: TBD by Market • Property consists of 5 units, with 20 total bedrooms • Terms: All Cash or 3rd Party Financed • Significant rental upside as-is, with additional rental increases achievable through • Units: 5 minimal interior upgrades • Year Built: 2014 • Stability of investment due to irreplaceable Central Austin location • Avg. Unit Size: 1,300 SF • Robust renter base, with 85% of the population in the neighborhood consisting of • Occupancy: 100% students • NRA: 6,500 SF • Exterior of the property is well-lit, with easily accessible staircases and a communal • Stories: 3 courtyard • Parking Spaces: 10 • Interiors of the units include granite countertops, stainless appliances, ceiling fans, and • Land Area: 0.224 Acres in-unit washer/dryer • APN: 0113000404 • Significant population growth in Central Austin, leading to an increasing need for • Zoning: MF4 housing in the submarket • Property is noted as the first modular apartment building in Austin Construction • Foundation: Concrete Pier • Construction: Modular • Exterior: Cement Board Siding • Interior: Vinyl Wood, Carpet, Tile • Roof: Flat • Paving: Concrete
Mechanical • Electrical: Copper Wiring • HVAC: Individual, HVAC • Water Heater: Tankless, Gas • Utilities: Individually Metered
4 OFFERING MEMORANDUM AUSTIN HIGHLIGHTS
• #1 City For Foreign Real Estate Investment – Forbes, 2021 • #1 Fastest-Growing Major Metro In The U.s. For 9 Consecutive Years – U.s. Census Bureau, 2020 • #1 City For Foreign Real Estate Investment Interest – Forbes, 2021 • #1 Best Job Market In The U.s. – Wall Street Journal, 2020 • #1 Hottest City For Commercial Real Estate – Forbes, 2020 • #1 Best Place To Start A Business – Inc., 2020 • #1 Most Affordable Startup City – Clever, 2020 • #1 Texas Metro For Venture Capital Dollar Volume – Crunchbase, 2019 • #3 Best Place To Live In The U.s. – U.s. News & World Report, 2020 • #3 Best Metro For Stem Professionals – Wallethub, 2020 • #7 Top U.s. Public Colleges (University Of Texas) – Business First, 2020 • #33 World University Rankings (University Of Texas) – Center For World University Rankings, 2020-2021
AREA OVERVIEW • 98% of residences classified as renter-occupied • Population density of 37,231 within 1-mile radius of the property • Located within the West Campus neighborhood, the primary location for student housing for the University of Texas at Austin. Walking distance to the University of Texas, a campus consisting of over 50,000 students • Minutes from the Texas State Capitol, UT Dell Medical Center, Austin Convention Center, and the multi-million-dollar development along Waller Creek • Austin, Texas is recognized nationally and internationally for its current and expected future economic growth and strength • Austin, Texas is the fastest-growing large metro in the US – adding an average of 184 people per day
2304 LEON STREET 5 DEVELOPMENT RENDERING DEVELOPMENT RENDERING
6 OFFERING MEMORANDUM DEVELOPMENT RENDERING
2304 LEON STREET 7 8 OFFERING MEMORANDUM 2304 LEON ST
AUSTIN, TX
FINANCIAL SUMMARY
LEON ST
2304 LEON STREET
W. 24th ST
9 OFFERING MEMORANDUM 2304 LEON STREET 9 RENT ROLL
PF Monthly PF Annual Unit # Floor Plan # of Units % Total Size (SF) Total SF Current Rent Rent PSF Monthly Rent Annual Rent PF Rent Rent Rent
A 4X2 1 20% 1,300 1,300 1,975 1.52 1,975 23,700 3,000 3,000 36,000
B 4X2 1 20% 1,300 1,300 3,000 2.31 3,000 36,000 3,000 3,000 36,000
C 4X2 1 20% 1,300 1,300 3,265 2.51 3,265 39,180 3,000 3,000 36,000
D 4X2 1 20% 1,300 1,300 3,250 2.50 3,250 39,000 3,000 3,000 36,000
E 4X2 1 20% 1,300 1,300 3,275 2.52 3,275 39,300 3,100 3,100 37,200
Total 5 6,500 6,500 14,765 14,765 177,180 15,100 15,100 181,200
Average 1,300 2,953 3,020
* Year 1 Proforma based on Preleasing for 2021-2022 academic year
Rent Analysis
Current Rent $2,953
Current Rent PSF $2.27
Proforma Rent $3,040
Proforma Rent PSF $2.34
Rent Comp Average Rent $3,806
Rent Comp Average Rent PSF $2.39
Variance to Rent Comp Average Rent $853.40
Market Rent Potential Upside 29%
10 OFFERING MEMORANDUM YEAR 1 PROFORMA
2020 %/$/Unit Per SF Proforma %/$/Unit Per SF Per Bed Comments
INCOME Scheduled Market Rent 184,168 36,834 28.33 181,200 36,240 27.88 Less: Loss to lease 0.0% - - 0.0% - Less: Physical Vacancy 0.0% - -5% (9,060) -5.0% (1.39) Less: Concessions/Bad Debt/Other 0.0% - -0.25% (453) -0.3% (0.07) Net Rental Income 184,168 100.0% 28.33 171,687 94.8% 26.41 Plus: Utility Reimbursement 3,970 794 0.61 5,400 1,080 0.83 90% reimbursement Plus: Security Deposit Forfeiture 16,290 3,258 2.51 14,765 2,953 2.27 Total Other Income 20,260 794 0.61 20,165 1,080 0.83
Effective Gross Income (EGI) 204,428 40,886 28.94 191,852 38,370 27.24
OPERATING EXPENSES - - - - Apartment Prep/Turnover 4,562 912 0.70 3,500 700 0.54 175 Carpet Cleaning, Painting, Unit Cleaning Administrative 1,005 201 0.15 1,000 200 0.15 50 Other Profession Fees (Fire Alarm Annual Inspection) Marketing 7,301 1,460 1.12 7,000 1,400 1.08 350 Leasing Commissions Contract Services 2,643 529 0.41 2,500 500 0.38 125 Landscaping/Porter Service Repairs & Maintenance 6,717 1,343 1.03 6,000 1,200 0.92 300 Repair, Plumbing, Appliances, HVAC, Roof Repairs & Maintenance Utilities 5,992 1,198 0.92 6,000 1,200 0.92 300 Electricity, Gas, Water
Total Controllable Expenses 28,220 5,644 4.34 26,000 5,200 4.00 1,300 Management Fee 11,734 5.7% 1.81 5% 9,593 5.0% 1.48 480 Insurance 5,945 1,189 0.91 6,000 1,200 0.92 300 Real Estate Taxes 47,038 9,408 7.24 49,390 9,878 7.60 2,469
Total Non-Controllable Expenses 64,717 12,943 9.96 64,983 12,997 10.00 Total Operating Expenses 92,937 18,587 14.30 90,983 18,197 14.00 Net Operating Income 111,491 22,298 14.65 100,870 20,174 13.25 Replacement Reserves 1,250 250 0.19 1,250 250 0.19 250 Net Operating Income After Reserves 110,241 22,048 14.45 99,620 19,924 13.05 19,924
2304 LEON STREET 11 RENT COMPARABLES
Address City State Units Bedrooms Avg Unit Size Rent Per Unit Rent Per Bedroom Rent PSF
1 1909 Robbins Pl AUSTIN TX 2 12 2,888 $7,800 $1,300 $2.70
2 2606 Salado St AUSTIN TX 5 20 1,457 $3,800 $950 $2.61
3 2405 Leon St AUSTIN TX 6 18 1,375 $2,900 $967 $2.11
4 2510 Leon St AUSTIN TX 132 271 1,005 $2,222 $1,082 $2.21
5 2222 Rio Grande St AUSTIN TX 12 24 1,000 $2,310 $1,155 $2.31
Average 31 69 1,545 $3,806 $1,091 $2.39
12 OFFERING MEMORANDUM 2
4
3
S
5
1
2304 LEON STREET 13 ± 125,000 VISITORS EACH YEAR ± 35,000 VISITORS ANNUALLY ± 50,950 STUDENTS
SUBJECT
W. 24TH ST PROPERTY LEON ST
14 OFFERING MEMORANDUM DOWNTOWN AUSTIN, TX NOTABLE TENANTS ARLO GREY 2ND ST DISTRICT MALL AUSTIN CONVENTION CENTER ATX COCINA THE CAPITAL GRILLE AUSTIN ROCKS THE BACKSPACE BOB’S STEAKHOUSE CAVA CITY HALL ELIZA PAGE MELLOW JOHNNY’S EUREKA! ROYAL BLUE GROCERY GOLD’S GYM URBAN OUTFITTERS MOONSHINE GRILL THE WELL SNEAKER POLITICS WHOLE FOODS MARKET TIPSY ALCHEMIST ETC.
AUSTIN’S OLDEST PERFORMING ARTS ORGANIZATION PEASE DISTRICT PARK
URBAN PUBLIC PARK
± 60,100 STUDENTS
SUBJECT LEON ST PROPERTY
2304 LEON STREET 15 SHOAL CREEK PARK/ GREENBELT
PUBLIC PARK & TRAIL CENTRAL PARK SHOPPING CENTER BLUE ELEPHANT BOUTIQUE FRANCESCA’S JIMMY JOHNS ORIGINS ORGANIC NAIL SPA URBAN MATTRESS ETC.
W. 24TH ST SUBJECT PROPERTY LEON ST
16 OFFERING MEMORANDUM SITE PLAN
SHOAL CREEK PARK/ GREENBELT
PUBLIC PARK & TRAIL CENTRAL PARK SHOPPING CENTER BLUE ELEPHANT BOUTIQUE FRANCESCA’S JIMMY JOHNS ORIGINS ORGANIC NAIL SPA URBAN MATTRESS ETC.
W. 24TH ST SUBJECT PROPERTY LEON ST
2304 LEON STREET 17 FLOOR PLAN
18 OFFERING MEMORANDUM FLOOR PLANS
2304 LEON STREET 19 20 OFFERING MEMORANDUM 2304 LEON STREET 21 2304 LEON ST
AUSTIN, TX
AREA OVERVIEW
22 OFFERING MEMORANDUM WEST CAMPUS
West Campus (also known as West University) is the heart of off-campus living, just steps from UT Austin and home to a plethora of restaurants, shops, services, and (of course) apartments and condos. This geographically constrained area is one of the most unique student neighborhoods in the country, and it’s been the preferred location for UT student living for more than a half century. 17,000+ people (mostly college students) live in this neighborhood, which is roughly ten blocks wide by ten blocks long, making it one of the densest neighborhoods in Texas. More than 50 Greek organizations and many of the 1,100+ student organizations registered at UT reside in West Campus.
This historic neighborhood, which is especially popular with undergraduate students, is lively, very walkable, and the second most bike-friendly area in Austin . The popular Guadalupe Street commercial area that serves as a gateway to UT’s main campus is known as “The Drag”, which is a reference to a bygone era when the street served as the main corridor for horses to drag carriages of students or faculty to UT. Sidewalks abound and there are protected bike lanes on Guadalupe Street and Rio Grande from MLK Blvd to 24th Street.
The location of West Campus is second to none. It borders UT, so most students walk to campus In fact, pedestrian traffic along The Drag is four times higher than any other area in Austin. The Texas State Capitol is a half mile away, it’s less than a mile to 6th Street, and only 1.5 miles to the beloved Lady Bird Lake Hike and Bike Trail. Just about anything a UT student could want or need, is either in the neighborhood or a quick bus ride away.
POPULATION HOUSEHOLDS
1-MILE 3-MILE 5-MILE 1-MILE 3-MILE 5-MILE 2026 Projection 40,317 179,934 418,767 2026 Projection 15,363 88,401 195,451 2021 Estimate 37,231 160,535 372,402 2021 Estimate 13,639 78,631 173,430 2010 Census 34,004 126,774 300,562 2010 Census 11,329 56,730 129,969 Growth % 2021-2026 8.29% 12.08% 12.45% Growth % 2021-2026 12.64% 12.43% 12.70% Growth % 2010-2021 9.49% 26.63% 23.90% Growth % 2010-2021 20.40% 38.61% 33.44%
HOUSEHOLD INCOME
1-MILE 3-MILE 5-MILE Average Household $81,905 $118,925 106,697 Income Medium Household $32,813 $80,473 $72,074 Income
2304 LEON STREET 23 15 #7 Undergraduate Programs U.S. Public Colleges HIGHER EDUCATION Ranked in the Top 10 Nationally -Business First, 2019
THE UNIVERSITY OF TEXAS AT AUSTIN Also referred to as UT Austin, the University of Texas at Austin is the flagship school of the University of Texas System, which includes nine academic universities and six health institutions statewide. Located about one mile from the Texas State Capitol in Austin, this public research university 482,000 124 has the seventh-largest single campus enrollment with over Alumni Across the World Countries Represented by the 51,000 students and 3,000 teaching faculty. More than 100 Student Body undergraduate and 170 graduate degrees are available to students as well as dozens of top-ranked programs with a proven record of success.
UT Austin continues to expand its facilities on campus and thanks to its proud alumni base of more than 482,000, which includes industry leaders like Michael Dell and Rex Tillerson, entertainers like Oscar-winning actor Matthew McConaughey, Academy Award-winning actress Marcia Gay Harden and film director Robert Rodriguez, as well as journalists’ Bill Moyers and Walter Cronkite. An abiding symbol of the spirit of Texas, the university cultivates economic and social progress as a leading center of knowledge and innovation.
24 OFFERING MEMORANDUM HEALTH DISTRICT
A vibrant Health District is taking shape in downtown Austin, linking diverse partners who work to improve health in Central Texas. The nonprofit Capital City Innovation leads the development of the district which is anchored by Dell Medical School and Dell Seton Medical Center at The University of Texas, the school’s primary teaching hospital operated by Ascension Seton.
Still in its early stages, the Health District will evolve in the near future as Central Health redevelops its Brackenridge Campus to support better health and health care across Travis County.
Already, Dell Med is bringing together researchers, clinicians, innovators and entrepreneurs from across a wide range of disciplines to identify and tackle big challenges in health. The med school’s Texas Health CoLab is one access points for partnership — and The University of Texas at Austin offers many others.
2304 LEON STREET 25 AUSTIN, TX AUSTIN FACTS
Located in the foothills of Texas Hill Country, Austin is the state capital and the cultural and economic center of the Austin-Round Rock metropolitan BEST PLACES TO LIVE area. Regarded by most as the best choice in Texas, the Austin area provides #1 residents a balance of a strong economy, good education, attractive housing, - U.S. News & World Report a pleasant climate and plenty to do. Visitors are welcome to indulge in the rich cultural heritage, plentiful #1 BEST COLLEGE TOWN entertainment amenities, unique attractions and outdoor recreation - Wallethub opportunities of this bustling, albeit laid-back, capital city. Surrounded by beautiful natural settings and abundant sunshine, Austin offers an unparalleled quality of life for its low cost of living.
TEXAS STATE CAPITOL
Located in the heart of Downtown Austin, the Texas Capitol is no stranger to wondrous gazes and awestruck stares, as it’s Old World architecture and reddish granite stand in stark contrast to the skyscrapers surrounding it.
The granite Texas statehouse stands as a testament to the history of the Lone Star State. The Texas Capitol is widely recognized as one of the nation’s most distinguished state capitols. It was placed on the National Register of Historic Places in 1970 and designated a National Historic Landmark in 1986. 22 ACRES ±1.2 MI 4,700 Land Covered From the State Capitol By the Capitol Subject Employees Property
26 OFFERING MEMORANDUM AUSTIN AT A GLANCE
The Domain NORTH/
183 NORTH- Lake Travis WEST 35
Lake Austin
MoPac/Loop 1
Interstate 183 290
CENTRAL University of Texas MUELLER 35 Market District EAST State WEST Capitol Circuit of SUBJECT PROPERTY The Americas DOWN Visitor Interstate Hill Country Center Convention TOWN Center 183
Bat Bridge Zilker Park
SOUTH Lady Bird Lake Colorado River Austin-Bergstrom International Airport
2304 LEON STREET 27 AUSTIN NEIGHBORHOODS
DOWNTOWN Rainey Street East Sixth Street Red River Cultural District East Cesar Chavez Sixth Street Mueller Warehouse District Cherrywood/Manor Road
NORTH AUSTIN The Arboretum University/The Drag Domain NORTHSIDE Hyde Park Rock Rose Anderson Lane Burnet Road/North Loop
SOUTH AUSTIN South Congress Avenue West Sixth Street South First Street Clarksville South Lamar Tarrytown Westlake
28 AUSTIN NEIGHBORHOODS
EAST AUSTIN East Sixth Street East Cesar Chavez Mueller Cherrywood/Manor Road
CENTRAL AUSTIN University/The Drag Hyde Park Anderson Lane Burnet Road/North Loop
WEST AUSTIN West Sixth Street Clarksville Tarrytown Westlake
29 QUALITY OF LIFE
As a gateway to Texas’ famed Hill Country, Austin’s gorgeous natural setting offers abundant sunshine and plenty of opportunities to get outdoors for fitness, recreation, and relaxation. The Austin region is home to miles of cycling and running trails, rock climbing, river rafting and kayaking, and top-ranked golf courses. Some popular attractions include Zilker Park, Barton Springs, Guadalupe River, Balcones Canyonlands, Lady Bird Lake, Lake Travis, Inner Space Cavern, and Lost Pines. Austin is so livable that it ranks No. 1 on U.S. News’ Best Places to Live ZILKER PARK for the second year in a row. The study analyzed 100 metro areas in the United States based on quality of life and the job market in each metro area, as well as the value of living there and people’s desire to live there.
8TH SAFEST LARGE CITY IN AMERICA -SafeWise
2ND BEST CITY For Young Professionals -SmartAsset BARTON SPRINGS
5TH HIGHEST CONCENTRATION Of College-Educated Adults -CityLab
BEST PLACE TO LIVE IN THE U.S. For the 3rd Consecutive Year -U.S. News & World Report
LOST PINES 30 FESTIVALS IN AUSTIN, TX
Austin is a 24-hour town populated by an upstart mix of musicians, techies, film pros, athletes, and foodies - and the yearly events calendar shows it.The Austin Marathon draws 20,000 runners from around the world. The Austin Food + Wine Festival welcomes visitors from across the nation and showcase the best innovative cuisine. Old Settler’s Music Festival has been celebrating the best of Americana, bluegrass, and roots music for more than 30 years; and Fantastic Fest, which features sci-fi, horror, fantasy, and other genre films, has become a favorite of film buffs and celebrities alike.SXSW Music, Film and Interactive Conferences and Festivals expand every year and the Austin City Limits Music Festival will once again welcome 70,000 fans per day to Zilker Park for performances by more than 100 bands.
SXSW CONFERENCE & FESTIVAL AUSTIN CITY LIMITS MUSIC FESTIVAL
Founded in 1987 in Austin, Texas, SXSW is best known for its conference The Austin City Limits (ACL) Music Festival is an annual music festival held in and festivals that celebrate the convergence of the interactive, film, and Zilker Park in Austin, Texas on two consecutive three-day weekends. ACL music industries. An essential destination for global professionals, the Festival features a diverse lineup of acts every year with 8 stages, more event features sessions, showcases, screenings, exhibitions, and a variety than 125 performances – and best of all, two weekends. The ACL Eats of networking opportunities. SXSW proves that the most unexpected Food Court at ACL Fest offers the most delicious festival food, drinks, and discoveries happen when diverse topics and people come together. sweets from Austin and the surrounding area’s favorite restaurants. Tacos, Throughout SXSWeek®, experience unparalleled discovery, learning, and brews, vegan options, and more. There’s plenty to do in between sets, networking with creatives across interactive, film, and music industries. including a mini-fest for kids, photogenic spaces, sponsored giveaways, Fostering creative and professional growth alike, SXSW® is the premier and merchandise for purchase. destination for discovery. 31 ECONOMY
AUSTIN’S LARGEST EMPLOYERS Austin’s economy grew 5.6% in 2018 according to new data on gross domestic product (GDP) by metro area and county released late last month by the U.S. Bureau of Economic Analysis (BEA). Austin’s 5.6% gain in real GDP is the fifth-highest rate of growth among the 50 largest metro economies. COMPANY # OF EMPLOYEES Over the last 5 years, real GDP is up 13.5% in the metropolitan portion of the U.S. In Apple 7,000 Austin, real GDP has grown 30.3% since 2013, making it the second-fastest-growing major economy—behind only San Jose. Ascension Seton 10,513 Professional and business services is Austin’s largest industry sector, accounting Austin Independent School District 11,101 for 16.9% of 2018 GDP. It also saw the fastest rate of real growth, 11.6%, in 2018. The other two industries with double-digit real growth in 2018 were information and transportation and utilities. Austin’s second most significant industry, financial City of Austin 13,531 activities, accounted for 15.1% of 2018 GDP and grew by 4.6%.
Dell Technologies 14,030 EMPLOYMENT BY INDUSTRY Federal Government 13,199
Construction, Natural
Resources, & Mining IBM Corp. 6,000
6.5% Leisure & Government Round Rock Indep. School District 6,311 Hospitality 16.5% 12.1% Samsung Austin Semiconductor 8,935 Education & Manufacturing5.6% St. David's HealthCare Partnership 10,665 Health Services 11.5% Financial5.9% Activities
Wholesale Trade State of Texas 63,900 4.7% Construction, Natural Retail Trade Resources, & Mining 9.8% University of Texas at Austin 23,925 6.5%
Warehousing & Utilities Transportation
Information
2.1% Source: Austin Chamber of Commerce Professional & 3.4% Business Services 4.3% 17.8%
32 dell inc. MAJOR EMPLOYERS BLIZZARD ± 13,000 EMPLOYEES ± 5,000 EMPLOYEES
flextronics APPLE COMPUTER INC.
± 13,000 EMPLOYEES ± 7,000 EMPLOYEES
IBM CORPORATION usps ± 6,000 EMPLOYEES ± 1,150 EMPLOYEES NATIONAL INSTRUMENTS ± 7,552 EMPLOYEES AMAZON
80 FULFILLMENT CENTERS AUSTIN COMMUNITY COLLEGE WORLDWIDE
± 5,000 EMPLOYEES SETON FAMILY OF HOSPITALS UT AT&T ± 12,800 EMPLOYEES ± 51,000 STUDENTS MORE THAN 210 MILLION CUSTOMERS 2304 Leon St ST. DAVID’S MEDICAL CENTER SUBJECT PROPERTY ± 8,200 EMPLOYEES ACCENTURE CITY OF AUSTIN
SERVES MORE THAN 120 COUNTRIES ± 13,500 EMPLOYEES AUSTIN ISD ± 80,000 STUDENTS STATE OF TEXAS
CONTAINS THE LARGEST STATE AGENCIES 33 NEW TESLA GIGAFACTORY MOVES TO AUSTIN
The new Tesla Gigafactory, set to be located in eastern Travis County, will be one of the world’s largest and most advanced automotive plants and will bring an estimated $1 billion in capital investment to the region. Tesla, which is now the most valuable automotive company in the world, is expected to generate up to 5,000 jobs across the employment spectrum, from entry-level roles to skilled labor and management with career pathways, making it It the largest tech employer in the city. “Our community has the strong desire to ensure everyone in our region has is estimated that for every one job created directly, four indirect and induced jobs opportunities to grow, opportunities to achieve success, and opportunities to provide will be created. Tesla will also generate millions of dollars in tax revenue for local a better future for their children,” said Opportunity Austin Chair Gary Farmer. and state governments each year. As part of its plan to locate the new facility in “Tesla’s decision to locate its newest Gigafactory in Austin will expand and enhance the Austin region, Tesla intends to invest in the community through workforce initiatives, our innovative culture while also providing new and exciting career opportunities for technical colleges, and programs for K-12 schools. all segments of our Central Texas workforce. The company’s pioneering spirit and advanced manufacturing technologies will be instrumental in our region’s economic The new factory will be located near the Austin-Bergstrom International Airport recovery and our sustainable growth for the longer term.” and produce the company’s new Cybertruck, as well as Tesla Models 3 and Y “for the eastern half of North America,” Musk said. The site, which Musk called an “ecological paradise,” will stretch about 2,000 acres along the Colorado River and offer a public boardwalk, hiking and biking trail.
34 FINANCIAL & PROFESSIONAL SERVICES
135,200 270,500
jobs in management, business jobs in the financial activities and business “Austin will play an important part in PIMCO’s continued growth and and financial operations occupations and professional services industries we are excited to become part of this vibrant, innovative community.”
Emmanuel Roman – CEO & Managing Director, PIMCO One of the Top Fintech Locations of the Future, taking First Place for Innovation & Attractiveness (fDi Intelligence)
LIFE SCIENCES & HEALTHTECH
No. 3 on ranking of Markets Emerging as the Life Sciences Industry’s Next Hot Spots (National Science Foundation)
260+ COMPANIES 16,300+ EMPLOYEES Diverse workforce in pharma/biotech, University of Texas at Austin Dell Medical School medical device, and biomed/healthcare IT
“Luminex makes a positive impact on our world by addressing global health concerns like COVID-19. What better place for an innovative life sciences company to set up our corporate headquarters than Austin, Texas. There is an incredible supply of creative individuals with exceptional talent living in this area. Austin’s quality of life and desirability continuously sets it apart from other cities and makes it a great place for our employees to live and raise their families. We are honored to call it home.”
Nancy M. Fairchild - Senior Vice President, Human Resources, Luminex Corporation 35 DEFENSE/CYBERSECURITY/SPACETECH
home of the UT AUSTIN U.S. ARMY FUTURES COMMAND (AFC) #5 for DoD-financed R&D spending headquarters #6 for computer science R&D spending
Other defense innovation centers include AFWERX, DIU, Army #8 for engineering R&D spending Applications Lab, Center for Defense Innovation, University of on Top Cybercities ranking based on tech’s Texas J.J. Pickle Research Campus, STAR Park at Texas State #4 23.5% share of metro economy (CompTIA) University
“We needed to immerse ourselves in an environment where innovation occurs, at speeds far faster than our current process allows. We searched for a location that had the right combination of top-tier academic talent, cutting edge industry and an innovative private sector.”
U.S. Secretary of Defense Mark T. Esper on Army Futures Command locating in Austin 36 GENERAL & ADVANCED MANUFACTURING
One of the top 20 U.S. metros for R&D performed by businesses 64,000 100 (National Science Foundation) manufacturing jobs—62% of them high tech additional manufacturers and 60% job growth in the food & beverage sector over the last 5 years “At Samsung Austin Semiconductor, the key to our success is our people, whose talent, creativity and dedication demonstrate why our ‘Made in Austin’ products are some of the best in the world. We focus on attracting the best talent and offer a corporate culture in $153 MILLION 12% which every person can excel.” in VC funding invested in 28 Austin CPG of GDP derived from manufacturing Samsung Austin Semiconductor (consumer product goods) companies in 2019
SOFTWARE & IT
87,800 76,000 Top 20 Global Tech Talent Hotspots jobs in computer and engineering occupations jobs in software/IT-related industries No. 1 City where Tech Professionals Want to Put Down Roots (CompTIA)
Best Tech Startup City in the U.S. (Yardi)
“When Oracle made the decision to come to Austin, we sought a central, vibrant community that offered access to a strong talent pipeline and a supportive business community, and the region has certainly delivered.”
Randy Smith – VP of Global Real Estate & Facilities, Oracle
37 CLEANTECH
200+ 20,000 CleanTech companies CleanTech employees
Home to Pecan Street, an R&D and commercialization lab with the world’s largest real-world testbed for research and product testing in the energy, water and transportation sectors.
Top 10 metro for Sustainable Development (Site Selection)
Top 10 market for CleanTech Venture Capital (Brookings Institution)
Resideo Technologies, Inc. Headquarters
“Austin has a rich history and is packed with creative energy, making it the perfect fit as we merge the 130-year heritage of Resideo’s Honeywell Home brand with next-generation technology to simplify the smart home experience.”
Mike Nefkens – President & CEO, Resideo
38 AN INNOVATIVE, COLLABORATIVE, & ENTREPRENEURIAL CULTURE
151 venture capital deals with $1.7 billion Home to SXSW Conference & Festivals: 417,400 in funding in 2019—Austin ranked 7th among U.S. metros for the value of creatives from 105 countries in 2019 funding
7,200 high-tech companies
Tier 1 research university with $680 million in annual research funding
#3 for patents per capita among major U.S. metros
100 incubators, accelerators, maker & co-working spaces
Tech/innovation centers include Home Depot, Walmart, IBM, Comcast, GE Aviation, Dell Med, HEB, and GM
One of the top 10 Global Technology Innovation Hubs (KPMG)
One of the Top 10 ‘New World Cities’ (JLL)
39 GETTING AROUND AUSTIN
Austin-Bergstrom International Airport (ABIA) is a state-of-the-art airport with 25 gates, full customs facilities ready for the international traveler, TSA Pre-Check, Border Protection's Global Entry program, and more. Easy to get to (only 7.5 miles Austin-Bergstrom from the Austin Convention Center) and easy to get through, passengers enjoy exceptional customer service Austin-style, International Airport (ABIA) free Wi-Fi (for up to 90 minutes), art exhibits, local food (from breakfast tacos to brisket and Shiner Bock beer) and 1,500 live music performances annually. In operation since 1999, the airport has roughly 350 daily flights with nonstop service to 70+ domestic and international destinations.
Austin's public Capital Metro Bus System serves a population of more than 1 million in its 535-square mile service area. With a system of more than 1,600 bus stops and 82 routes, Central Texas is served by local, MetroRapid limited-stop, Capital Metro Bus System MetroFlyer, MetroExpress and University of Texas Shuttle routes. The CapMetro App allows riders to buy passes and plan their trips. Day passes cost $2.50 for local bus service (including MetroRapid) and $7 for commuter services (including MetroExpress).
Connecting Austin on a 32-mile line that stretches all the way from the city of Leander to downtown Austin next to the MetroRail Convention Center, MetroRail provides serves nine stations in between. The train operates six days a week, with service until around 7 Monday-Thursday, until 1:30 a.m. on Friday and 2:30 a.m. on Saturday. Day passes cost $7.
On-the-go bike rentals from Austin B-cycle are available to use at more than 40 stations located throughout the city. Also Bike & Scooter Rentals available are a number bike shops that offer hourly and daily rentals, such as Barton Springs Bike Rentals. Dockless bikes and scooters are available around town from companies such as Lime Bike, Bird, Pace, Lyft and more.
Austin is within 250 miles of 4 of the top* U.S. ports: #2 Houston (175 miles via I-10, BNSF, UP) Ports #4 Beaumont (250 miles via I-10, BNSF, UP) #5 Corpus Christi (219 miles via I-35/37, UP) #15 Texas City (207 miles via I-10, BNSF, UP) CONFIDENTIALITY AGREEMENT AND DISCLAIMER This Offering Memorandum contains select information pertaining to the business and affairs of 2304 Leon Street, Austin, TX 78705 (“Property”). The Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Matthews Real Estate Investment Services. The material and information in the Offering Memorandum is unverified. Matthews Real Estate Investment Services has not made any investigation, and makes no warranty or representation, with respect to square footage, income and expenses, the future financial performance of the property, future rent, and real estate value market conditions, the condition or financial prospects of any tenant, or the tenants’ plans or intentions to continue to occupy space at the property. All prospective purchasers should conduct their own thorough due diligence investigation of each of these areas with the assistance of their accounting, construction, and legal professionals, and seek expert opinions regarding volatile market conditions given the unpredictable changes resulting from the continuing COVID-19 pandemic. The information is based in part upon information supplied by the Owner and in part upon financial information obtained from sources the Owner deems reliable. Owner, nor their officers, employees, or real estate agents make any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum, or any of its content, and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein.
By acknowledging your receipt of this Offering Memorandum for the Property, you agree:
1. The Offering Memorandum and its contents are confidential; 2. You will hold it and treat it in the strictest of confidence; and 3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller.
Matthews Real Estate Investment Services is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee in the Offering Memorandum. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Matthews Real Estate Investment Services.
Owner and Matthews Real Estate Investment Services expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered.
If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum.
A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Matthews Real Estate Investment Services or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property.
This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum.
2304 LEON STREET 41 2304 LEON ST
AUSTIN, TX
EXCLUSIVELY LISTED BY
HAYDEN SCHNIEDERS WILL COLLIER JORDAN VAUGHN Associate - Multifamily Associate - Multifamily Associate - Multifamily DIRECT: +1 (512) 535-1621 DIRECT +1 (512) 535-0604 DIRECT +1 (512) 535-1615 MOBILE: +1 (214) 364-5988 MOBILE +1 (832) 474-8842 MOBILE +1 210 789 0226 [email protected] [email protected] [email protected] License No. 742423 (TX) License No. 743165 (TX) License No. 742372 (TX)
BROKER OF RECORD Kyle Matthews License No. 9005919 (TX) 11-2-2015 Information About Brokerage Services Texas law requires all real estate license holders to give the following informaƟon about brokerage services to prospecƟve buyers, tenants, sellers and landlords.
TYPES OF REAL ESTATE LICENSE HOLDERS: . • A BROKER is responsible for all brokerage acƟviƟes, including acts performed by sales agents sponsored by the broker. • A SALES AGENT must be sponsored by a broker and works with clients on behalf of the broker.
A BROKER’S MINIMUM DUTIES REQUIRED BY LAW (A client is the person or party that the broker represents): • Put the interests of the client above all others, including the broker’s own interests; • Inform the client of any material informaƟon about the property or transacƟon received by the broker; • Answer the client’s quesƟons and present any offer to or counter-offer from the client; and • Treat all parƟes to a real estate transacƟon honestly and fairly.
A LICENSE HOLDER CAN REPRESENT A PARTY IN A REAL ESTATE TRANSACTION:
AS AGENT FOR OWNER (SELLER/LANDLORD): The broker becomes the property owner's agent through an agreement with the owner, usually in a wriƩen lisƟng to sell or property management agreement. An owner's agent must perform the broker’s minimum duƟes above and must inform the owner of any material informaƟon about the property or transacƟon known by the agent, including informaƟon disclosed to the agent or subagent by the buyer or buyer’s agent.
AS AGENT FOR BUYER/TENANT: The broker becomes the buyer/tenant's agent by agreeing to represent the buyer, usually through a wriƩen representaƟon agreement. A buyer's agent must perform the broker’s minimum duƟes above and must inform the buyer of any material informaƟon about the property or transacƟon known by the agent, including informaƟon disclosed to the agent by the seller or seller’s agent.
AS AGENT FOR BOTH - INTERMEDIARY: To act as an intermediary between the parƟes the broker must first obtain the wriƩen agreement of each party to the transacƟon. The wriƩen agreement must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker's obligaƟons as an intermediary. A broker who acts as an intermediary: • Must treat all parƟes to the transacƟon imparƟally and fairly; • May, with the parƟes' wriƩen consent, appoint a different license holder associated with the broker to each party (owner and buyer) to communicate with, provide opinions and advice to, and carry out the instrucƟons of each party to the transacƟon. • Must not, unless specifically authorized in wriƟng to do so by the party, disclose: ᴑ that the owner will accept a price less than the wriƩen asking price; ᴑ that the buyer/tenant will pay a price greater than the price submiƩed in a wriƩen offer; and ᴑ any confidenƟal informaƟon or any other informaƟon that a party specifically instructs the broker in wriƟng not to disclose, unless required to do so by law.
AS SUBAGENT: A license holder acts as a subagent when aiding a buyer in a transacƟon without an agreement to represent the buyer. A subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first.
TO AVOID DISPUTES, ALL AGREEMENTS BETWEEN YOU AND A BROKER SHOULD BE IN WRITING AND CLEARLY ESTABLISH: • The broker’s duƟes and responsibiliƟes to you, and your obligaƟons under the representaƟon agreement. • Who will pay the broker for services provided to you, when payment will be made and how the payment will be calculated.
LICENSE HOLDER CONTACT INFORMATION: This noƟce is being provided for informaƟon purposes. It does not create an obligaƟon for you to use the broker’s services. Please acknowledge receipt of this noƟce below and retain a copy for your records.
Kyle Matthews/Matthews Retail Group Inc. 678067 [email protected] (310) 919-5757 Licensed Broker /Broker Firm Name or License No. Email Phone Primary Assumed Business Name Kyle Matthews 678067 [email protected] (310) 919-5757 Designated Broker of Firm License No. Email Phone
Licensed Supervisor of Sales Agent/ License No. Email Phone Associate
Sales Agent/Associate’s Name License No. Email Phone
Buyer/Tenant/Seller/Landlord Initials Date
Regulated by the Texas Real Estate Commission InformaƟon available at www.trec.texas.gov IABS 1-0