201 Central Park Executive Summary 201 Central Park Location Overview

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201 Central Park Executive Summary 201 Central Park Location Overview 201 CENTRAL PARK EXECUTIVE SUMMARY LOCATION OVERVIEW 201 CENTRAL PARK San Pedro Plaza: 163,834 SF NORTH STAR MALL North Star Transit Center $800+ SALES/SF ,000+ VPD 100 SAN PEDRO AVE | 39,000+ VPD Pad Site 1.06 AC RENOVATION UNDERWAY W RECTOR 2 201 CENTRAL PARK SITE PLAN 700 FT Former Sears (N.A.P) 6,3796,379 SF D NUE E VENUE | 39,000+ VP A Available 4,924 SF SAN PEDRO 3,275 SF Development Opportunity 1.06 AC 4,985 SF 6,000 SF W EST RECTOR 3 201 CENTRAL PARK INVESTMENT HIGHLIGHTS SUPERIOR LOCATION, ACCESS & VISIBILITY • 201 Central Park is situated along Interstate 410 (100,000+ VPD) at the San Pedro intersection with strong visibility from the access road and major thoroughfare and two traffic signals serving the asset • The Property is located within an established trade area near the Highway 281/Loop 410 interchange and is shadow-anchored by a soon to be renovated former Sears box that will include a Bed Bath & Beyond, Buy Buy Baby and a TruFit Athletic Gym • The trade area is highlighted by 1.2MM square feet of retail across the street at North Star Mall, home to Sacks Fifth Avenue and Apple, as well as a Park North Shopping Center next door, home to Alamo Draft House, Target and DeVry University • In addition to the traffic generated by Interstate 410, San Antonio’s primary outer loop, the Property sits in close proximity to the San Antonio International Airport as well as various employment centers such as Downtown San Antonio • The Property has benefited from northern sprawl and population growth as well as the development of quality office and retail properties along the Highway 281 corridor 4 201 CENTRAL PARK INVESTMENT HIGHLIGHTS INCOME STABILITY PAIRED WITH VALUE ENHANCEMENT • The lease-up of existing vacancy has the potential to increase NOI in the long-run • With all strip parcel leases commencing in 2017, the new owner has plenty of time to develop and fully lease the property before national retailers begin to exercise their options • The Property is home to San Antonio’s first Shake Shack, a major demand driver for the property DEVELOPMENT READY PAD SITE • A development-ready pad site consisting of approximately 1.06 acres is available with the Property, offering potential investors the opportunity to develop a sizable retail property • This pad site has a paved parking area complete with lights and landscaping, eliminating a significant portion of the site development costs • The strip parcel and single tenant restaurant are positioned to benefit from additional foot traffic in the area that would come from an additional retailer • Limited construction starts coupled with tightening occupancy presents ideal market conditions for near term development QUALITY TENANCY AND CONSTRUCTION • Longhorn Steakhouse, Orvis, Jared and Shake Shack add nationally recognized brands while increasing consumer traffic to the Property • Recent, high quality construction offers superior curb appeal with limited future capital requirements • Re-development of Sears site will increase consumer traffic at the property with three well known national retailers 5 201 CENTRAL PARK LOCATION OVERVIEW TIMBERWOOD PARK 201 Central Park is located in San Antonio, Texas. Commonly Camp Bullis LEON SPRINGS Military known as “the heart of Texas”, San Antonio has consistently Reservation led the nation in economic growth and stability over the CROSS STONE OAK MOUNTAIN GARDEN RIDGE last several years. Among Texas’ “big four” metro areas NORTHCLIFF — Houston, Dallas, Austin and San Antonio — there is a BRACKEN GREY FOREST rejuvenated buzz about the Alamo City. Building upon its SHAVANO PARK SELMA rich history and authentic culture, San Antonio stands out HELOTES as an opportunity city celebrated for its attractive quality of LIVE OAK life, emerging culinary and arts scene and affordable cost San Antonio CIBOLO International Airport of living. More specifically, 201 Central Park sits in the North NORTH CENTRAL Randolph 201 AFB Central San Antonio submarket which benefits from quality CENTRAL PARK WINDCREST CASTLE HILLS infrastructure along Interstate 410 and Highway 281 and CONVERSE LEON VALLEY BALCONES ALAMO HEIGHTS excellent connectivity to established neighborhoods and HEIGHTS TERREL HILLS business centers across the city including the affluent Alamo KIRBY Heights neighborhood and the San Antonio International Airport which saw over 10 million passengers in 2018. The diverse and well-known national retailers at the property, SAN ANTONIO MARTINEZ ST HEDWIG including San Antonio’s first Shake Shack location, make it a popular shopping and dining destination. From soft goods Lackland ADKINS AFB JBSA-Kelly CHINA GROVE JBSA-Lackland Field retailers like Jared and Orvis, to beloved restaurants like & Medina Annex Training Annex Shake Shack and Longhorn Steakhouse, the property’s tenant base has solidified itself as a local demand driver frequented HARLANDALE by locals and visitors every day. MACDONA SOUTH SAN ANTONIO LACOSTE KICASTER VON ORMY 1-Mile 3-Mile 5-Mile ATASCOSA DEMOGRAPHICS Radius Radius Radius 2024 Projected Population 12,539 117,023 340,283 ELMENDORF 2019 Population 11,993 111,370 322,626 LOSOYA LYTLE 2010 Population 11,623 105,352 303,052 SASPAMCO Projected Growth (2019-2024) 4.6% 5.1% 5.5% Growth (2010-2019) 3.2% 5.7% 6.5% Average Household Income $70,400 $73,080 $80,074 Median Home Value $197,729 $163,884 $207,142 6 201 CENTRAL PARK LOCATION OVERVIEW Spectrum Building: 175,314 SF 91% Leased Airport Hilton: 384 Rooms Pyramid Building: 220,693 SF 91% Leased SURROUNDING 5 MILES North Star Transit Center CAMANCHE LOOKOUT PARK SA N RENOVATION PE NORTH 31.1 MILLION DR UNDERWAY O SF OF OFFICE AV STAR MALL 87.9% OCCUPIED E $800+ SALES/SF BULVERDE OAKS NATURE PRESERVE Pad Site 1.06 AC 27.2 MILLION W RECTOR ROLLING OAKS SF OF RETAIL GOLF CLUB BAR & GRILL 94.5% OCCUPIED 59,000 UNITS OF MULTI-FAMILY ROLLING OAKS MALL UNDER CONSTRUCTION • Dillard’s • JCPenney NACOGDOCHES RD • Macy’s • Sears STAHL RD P VD , , VDP 7 NACOGDOCHES RD FUTURE HEB SITE 201 CENTRAL PARK RETAIL MARKET OVERVIEW SAN ANTONIO RETAIL MARKET ASKING RENTAL RATES INVENTORY/ABSORPTION $16.50 $16.00 +8.5% • The San Antonio retail market is comprised of 136 million square feet of SINCE 2017 retail space, a number that has grown 9% since 2010. $15.50 • The market continues to see healthy absorption, since 2015, there has $15.00 been an average of 1.5 million square feet of positive absorption per year. $14.50 • Limited deliveries in the past two years have further improved the overall retail market. $14.00 • Year to date, less than 480,000 SF of retail product has been delivered to $13.50 the market. $13.00 2015 2016 2017 2018 YTD OCCUPANCY • Today’s occupancy rate of 95.7% highlights the demand from local and ABSORPTION & DELIVERIES national retailers driven by strong population growth. 3,500,000 • Since 2010, occupancy rates have averaged 95%, while never dropping 3,000,000 below 93% over that same time period. 2,500,000 RENTAL RATES 2,000,000 • Market wide rental rates are the highest they have ever been at $16.01 per 1,500,000 square foot NNN. 1,000,000 • Since 2017, the San Antonio market rental rates have increased approxmitly 500,000 8.5%. 0 • These rental rates are expected to grow, with occupancy rates high, 2015 2016 2017 2018 YTD development low, and a population experiencing top growth nationally. Absorption Deliveries 8 201 CENTRALOGDO CPARKH ECONOMIC OVERVIEW NAC ES ECONOMIC OVERVIEW CROSSING One of the nation’s fastest-growing economies – GDP $129 Billion (38% GDP growth since 2012) ACCOLADES Top 10 Fastest Growing Cities 3rd Largest 25th Largest UNEMPLOYMENT RATE - Forbes Metro in Texas Metro in U.S. ★ ★ Top 25 Best Places to Live 3.5% San Antonio 3.9% Texas 4.1% U.S. - U.S. News and World Report No. 8 Best Economic Climate CENTER OF ECONOMIC ACTIVITY AND COMMERCE - Forbes EMPLOYMENT GROWTH annually through 2021 Top 10 Cities for Global Trade - Global Trade Magazine 2.0% +85,000 jobs 50%of goods traveling between Mexico No. 12 Best Cities for Jobs and the United States flows through San Antonio - Forbes POPULATION GROWTH America’s 25 Best-Performing Cities from - Milken Institute 2010 - 2018 AVERAGE COMMUTE TIME Top 10 Most Recession-Recovered Metros 17.5% - WalletHub since 2000 22.4 11.2% No. 1 In Economic Growth Potential +375,000 - Business Facilities minutes shorter than national average No. 6 fastest growing metro in the country Population increasing 57.3% to 4 million people by 2040 259 201 CENTRAL PARK SUPERIOR LOCATION SAN PEDRO AND LOOP 410 - A SUPERIOR LOCATION RESIDENTIAL OFFICE RETAIL 201 Central Park is surrounded by a handful of This location is central to residential areas of both Excellent access to key demogrpahics and ease of well-known and highly desirable San Antonio business owners and the people they employ. With access to all of San Antonio, including the airport, neighborhoods. Within the Castle Hills/ San Pedro/ over 2.8 million square feet of office within a 1-mile and downtown, and has made this intersection a Jackson-Keller apartment market, which is bound by radius, 201 Central Park serves a robust employment true main & main retail destination. The property Interstate 410, Interstate 10 and Highway 281, there base including the regional office of the Fortune 500 is directly across the street from the incredibly are over 7,600 completed multi-family units. Average tech-giant, Oracle. The trade area is 85.6% occupied popular 1.2 MSF, 100% occupied North Star Mall. occupancy for the submarket is approximately 88%. and has seen healthy leasing momentum so far in 2019 North Star Mall is home to 175 retailers including Additionally, a 304-unit active-adult apartment with over 28,000 SF of positive absorption.
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