DOWNTOWN SAN ANTONIO, TEXAS RECENT CPS ENERGY HEADQUARTERS CAMPUS
OPPORTUNITY ZONE
TWO OFFICE BUILDINGS | TWO PARKING GARAGES | SURFACE PARKING LOT PREMIER REPOSITIONING OR REDEVELOPMENT OPPORTUNITY | COVETED RIVER WALK LOCATION
EXECUTIVE SUMMARY THE INVESTMENT OPPORTUNITY
CBRE, as exclusive advisor, is pleased to present to qualified investors a unique opportunity to acquire the Recent CPS Energy Headquarters Campus (“Campus” or “Property”). Exceptionally positioned at the heart of downtown San Antonio, Texas, the offering comprises a 100% fee-simple interest in the Main Office Building, the Navarro Office Building & Garage, and Surface Parking Lot, as well as CPS Energy’s 100% interest in the Tower Garage, which comprises a 50% total interest in the Garage.
As the premier available site across the San Antonio market, the Campus INVESTMENT HIGHLIGHTS features an irreplaceable location along the world-famous River Walk — an urban waterway described as “The American Venice” that attracts over 11 million visitors and has an annual economic impact of $3 billion. Located in a Federal Opportunity Zone and in two tax increment reinvestment zones Existing Improvements & Infrastructure (TIRZ), this well-timed opportunity also coincides with an unprecedented Ideal for Repositioning wave of public and private investment across downtown San Antonio with o Signature Corporate Campus major developments totaling more than $2.5 billion. o Multi-Tenant or Single-Tenant Use The Campus offers superb convenience and highly walkable amenities as it is within one-half mile of 50+ restaurants, 30+ hotels, the Henry B. Gonzalez Prime Redevelopment Potential Convention Center, the Bexar County Courthouse, numerous city parks, and o River Walk Frontage some of the city’s most significant points of interest — including The Alamo. o Creation of a True Live-Work-Play Destination The Property also offers tremendous views of the San Antonio River, the River o Zoning Accommodates Flexible Uses Walk and the greater downtown area. o Located in Tax Increment Reinvestment Zones o Located in a Federal Opportunity Zone The Campus is located in a Federal Opportunity Zone, a designated area where new investments may be eligible for federal tax Coveted Central Business District (CBD) Submarket benefits, including the reduction and deferral of capital gains taxes. o Premier 24/7 Mixed-Use Urban Destination o Single-Digit Vacancy Rate (Office, Residential, Hotel, Retail)
Presenting an opportunity to create a signature corporate campus or a mixed-use redevelopment along San Antonio’s River Walk, the Campus is a truly generational investment offering. Vibrant San Antonio Marketplace o Top 20 Market for Investment Offers encompassing the entire Campus or any one or more of its o Leading Population & Job Growth
HEADQUARTERS CAMPUS CAMPUS HEADQUARTERS RECENT CPS ENERGY components will be considered.
1 ASSET PROFILES River Walk
St Mary’s St (One-Way Traffic) (±10,000 VPD) Villita St (±2,000 VPD) Bus Stop Main Office Building Tower Garage
Navarro Office Surface Parking Lot Building & Garage E Nueva St (±7,000 VPD) Villita St
Vehicles Per Day (VPD) S Presa St (±2,000 VPD)
Navarro St (One-Way Traffic) (±8,200 VPD)
Main Office Building Navarro Office Building & Garage Tower Garage Surface Parking Lot 145 Navarro Street 146 Navarro Street 211 Villita Street 127 Navarro Street Address Address Address Address San Antonio, TX 78205 San Antonio, TX 78205 San Antonio, TX 78205 San Antonio, TX 78205 # of Stories 10 (Plus Lower Level) # of Stories 7 (Garage) | 3 (Office) # of Stories 7 Parking ±108 Spaces ±211,352 SF (Gross) Office Size ±100,000 SF Parking ±133 Spaces* Site Size 1.029 Acres Office Size ±201,805 SF (Rentable) Typical Floor ±30,000 SF Year Built 1955 Zoning D (RIO-3) Typical Floor ±18,500 SF (Rentable) Parking ±595 Spaces Site Size 0.185 Acre* Permitted Office, Retail, Hotel, 1926 (Basement-8) Uses Include Residential Years Built 1968 (Garage & Office) Zoning D (HS RIO-3) 1984-1985 (Floors 9-10) Years Built 1987 (Office) Office, Retail, Hotel, Site Size 0.653 Acre Permitted Site Size 1.311 Acres Uses Include Residential Two small structures on the Surface Parking Zoning D (HS RIO-3) Zoning D (H HE HS RIO-3) Lot are profiled in the Property Description Permitted Office, Retail, Hotel, Permitted Office, Retail, Hotel, *Reflects CPS Energy’s 100% interest section of the Offering Memorandum. Uses Include Residential Uses Include Residential ownership of 50% of the Tower Garage S ummary E xecutive
2 Note: All sizes above are approximate and to be verified by buyer. EXCEPTIONAL REPOSITIONING OPPORTUNITY
Ideal Headquarters Numerous Possibilities Include Renovation, Expansion or Redevelopment Adaptable for a Single User or As a Premier Multi-Tenant Property Offered free and clear of existing financing, the Campus allows investors to take advantage of historically strong lending markets, generating Lease up of Prime Vacant Space significant leveraged returns. Significant Value in the Lease up of Prime Corporate Space along the River Walk Established Infrastructure, Amenities & Market Presence
Limited Availability Creates Upward Pressure on Rents Robust Demand Has Produced Strong Office Occupancy (89.5%) & Four-Year Rent Growth of 20% Very Few Remaining Sites along the River Walk Available for Purchase & Development
Timely Opportunity to Compete for Large Tenants One Block of CBD Class A, Contiguous Office Space Greater Than 50,000 SF Rents Range from $38.00-$42.00 PSF (NNN) for New Office Construction
Well Positioned to Capitalize on Demand for Parking Additional Contract and Transient Parking — Proximity to Office, County & Municipal Buildings Evening and Weekend Revenue — Driven by the River Walk, Hotels & Downtown Events HEADQUARTERS CAMPUS CAMPUS HEADQUARTERS RECENT CPS ENERGY
3 NAVARRO OFFICE BUILDING & GARAGE
MAIN OFFICE BUILDING
TOWER GARAGE
San Antonio Villita Street (±2,000 VPD) River Walk SURFACE PARKING LOT
One-Way Traffic (±8,200 VPD)
Navarro Street ZONING
CITY OF SAN ANTONIO RIO-3 OVERLAY EXAMPLES OF ZONING MAP DISTRICT INFO & MAP PERMITTED USES
The Recent CPS Energy Headquarters Campus is located in two of downtown San Antonio’s TIRZs — TIRZ Houston Street and Hemisfair. S ummary E xecutive
4 PREMIER REDEVELOPMENT SITE
Flexible Zoning: Live-Work-Play Destination on the River Walk Permits Integrated Development Including Office, Retail, Hotel & Residential Main Office Building: Office, Hotel, Residential Uses with Ground-Level Retail Navarro Office Building: Office Operations with Ground-Level Retail Navarro Parking Garage: Employee, Contract and Special Event Parking Tower Garage: Executive Parking for Adjacent Office Buildings Surface Parking Lot: Surrounding Office, Municipal/County Building, Special Events
Opportunity to Generate Value-Add/New Development Returns Expected to Trade at a Discount to the Existing Economic Basis of Competitive Properties Control of a Unique, Large Scale Site in the San Antonio CBD Superior Accessibility Exceptional Ingress/Egress Less Than One Mile to I-10, I-35 and I-37
15 Minutes South of San Antonio International Airport HEADQUARTERS CAMPUS CAMPUS HEADQUARTERS RECENT CPS ENERGY
5 ON-SITE AMENITIES
Main Office Building Full-Service Cafeteria with Commercial Kitchen
Skybridge — Connects the Main Office Building & Navarro Office/ Garage
Navarro Building Outdoor Balcony Space - River Walk Views
Direct Access to S ummary E xecutive the River Walk 6 LIVE-WORK-PLAY ENVIRONMENT
THOMPSON (UC) 13
RECENT CPS ENERGY HEADQUARTERS 1
WYNDHAM 90+Walkability Score 1
90+ Transit Access Score
6 HYATT REGENCY SHERATON 7 5
35 4 7 4 8 THE CROCKETT 2 OMNI HOTEL 2 RIVERWALK MENGER HOTEL 10 8 3 3 6 LA QUINTA WESTIN HOTEL DRURY PLAZA HOMEWOOD 9 SHOPS AT RIVERCENTER 37 COUNTY & MUNICIPAL BUILDINGS 10 MARRIOTT RIVERCENTER 1 2 MARRIOTT RIVERWALK HILTON HOTEL 7 RECENT CPS ENERGY 9 HEADQUARTERS CAMPUS 11 GRAND HYATT Cesar Chavez Blvd 12 5 WYNDHAM HOTEL HOTEL CONTESSA 12 HENRY B. GONZALEZ CONVENTION CENTER 5 4 LA VILLITA HISTORIC VILLAGE O’BRIEN HOTEL 10 NOTABLE RESTAURANTS CLASS A RESIDENTIAL 1 Pharm Table 1 Granada Homes MARRIOTT PLAZA 6 2 Pico De Gallo 2 Villita Tower (Planned) 3 HEMISFAIR PARK 11 3 Mi Tierra Café y Panaderia 3 Agave Apartments
4 Bella on Houston 4 Heritage Plaza (UC) NOTABLE ATTRACTIONS 5 Bohanan 5 Encore SoFlo (UC) 1 Tobin Center for the Performing Arts 6 The Palm San Antonio 6 The Floodgate (Planned) ALAMODOME 2 Market Square 7 Texas de Brazil 7 Maverick Apartments 3 Spanish Governor’s Palace 8 Iron Cactus 8 Vistana 4 The Alamo 9 Biga on the Banks 9 Hemisfair Apartments (Planned) 5 St. Paul Square 10 Fogo de Chao 10 The ‘68 (UC)
HEADQUARTERS CAMPUS CAMPUS HEADQUARTERS RECENT CPS ENERGY 6 Tower of the Americas 11 Little Rhein Steak House 11 Durango Residences (UC) 7 Villita Assembly Building 12 Rio de Gelato 12 St. John’s Square (Planned) 7 13 Arts Residences (Condos, UC) Highly Walkable Location Within One-Half Mile of the Campus: ±50 Retail Shops & Restaurants RIVER WALK — DIRECT ACCESS TO THE CAMPUS ±2,500 Residential Units HEMISFAIR PARK — 1/2 MILE FROM THE CAMPUS 30+ Hotels with ±8,700 Rooms & Suites Excellent Access to Public Transit S ummary E xecutive
THE ALAMO — 1/2 MILE FROM THE CAMPUS LA VILLITA HISTORIC ARTS DISTRICT — ADJACENT TO THE CAMPUS 8 OPPORTUNITY ZONE LOCATION
OPPORTUNITY ZONE HIGHLIGHTS
o Feature of the Tax Cuts and Jobs Act, creating tax advantages to attract capital into designated areas. o Primary investment vehicle for opportunity zone investments is a certified opportunity fund. o Designation of opportunity zones remains in effect through the end of 2028. o Improvements equal to cost of acquisition must be made within a 30-month period.
TAX ADVANTAGES
RECENT CPS ENERGY HEADQUARTERS CAMPUS
COMMERCE STREET 2026 180 CESAR CHA
NAVARRO STREET
V E Z
BO UL EVARD Investors can defer Capital must be placed Unlimited amount of capital taxes on capital in an opportunity fund gains can be reinvested into gains until 2026. within 180 days. an opportunity fund. Opportunity Zone
Source: City of San Antonio Website
2021 5 YEAR 7 YEAR
The Campus is located in a Federal Opportunity Zone, where new investments may be eligible Must invest by 2021 Gains invested qualify Gains invested qualify for federal tax benefits, including reduction and to take advantage of for 10% reduction in for 15% reduction in deferral of capital gains taxes. tax reduction benefits. amount of taxed gain. amount of taxed gain.
Additional information on Opportunity Zones is available at HEADQUARTERS CAMPUS CAMPUS HEADQUARTERS RECENT CPS ENERGY www.cbre.us/opportunityzones 9 VIBRANT CBD SUBMARKET
Major Companies with a Significant CBD Presence Mixed-Use, 24/7 Environment Urban Infill Location with Strong Barriers to Entry Development Investment of More Than $2.5 Billion Strong Residential Growth Pedestrian Friendly with Mass Transit Access Attracts Decision Makers and Young Professionals
CBD’s Excellent Market Fundamentals | First Quarter 2019
Office Snapshot Inventory: 6.2 MSF Occupancy: 89.5% Class A Avg. Asking Rents: $31.18 PSF (Gross) Total Net Absorption (2018): 85,224 SF Source: CoStar | Excludes owner-occupied properties.
Multifamily Snapshot Inventory: 5,120 Units Occupancy: 91.6%* Class A Avg. Asking Rents: $2.01 PSF (Monthly) Total Net Absorption (2018): 230 Units Source: CoStar | *Excludes properties in lease-up.
Hotel Snapshot Inventory: 14,470 Rooms & Suites Occupancy: 71.3% Revenue Per Available Room: $110.49 Average Daily Rate: $155.06 Source: CBRE Hotels Research (YE 2018)
Downtown San Antonio’s population of Retail Snapshot nearly 19,000 is up 30% since 2010 and is Inventory: 4.4 MSF projected to grow another 14% by 2023 — Occupancy: 97.2% Average Asking Rents: $21.36 PSF (NNN)* exceeding 21,600 residents. EXECUTIVE SUMMARY S ummary EXECUTIVE E xecutive Street-Level Retail Rents: $18.00-$24.00 PSF (NNN)* Source: CoStar 10 *Triple Net (NNN) VIBRANT SAN ANTONIO MARKETPLACE
INTERSTATE America’s 7th Largest City University of Texas at San 410 Strategic Geographic Location Antonio Emerging City & Workforce of the Future
10 to Austin Increasingly Diverse Economy San Antonio (90 Minutes) International Expanding Tech/Cyber Security, New Energy, & Healthcare/Bioscience Airport 35 Employment 410 Strong Financial Services, Military & Advanced Manufacturing Presence to Texas Hill Country (1 Hour) 281 Pro-Business Environment Low Costs of Living and Doing Business Gross Metro Product of $116 Billion — up 4.5% Year over Year RECENT CPS ENERGY HEADQUARTERS CAMPUS to Houston 10 Rapidly Growing Population (3 Hours) UTSA #1 Large City for Population Growth Downtown Campus #4 Large Metro for Millennial Population Growth 90 SAN ANTONIO CBD Strong Job Growth Port San Antonio 131,000+ Net New Jobs (Last Five Years) Lackland Air Force Base Five-Year Growth Rate of 14% Brooks City-Base 37
Very Low Unemployment 3.4% Compared to National Average of 4.1% (Seasonally Adjusted) 35 Lowest Unemployment Rate since 1999 410
to Laredo to Corpus Christi (2.5 Hours) (2 Hours)
281 Urban Land Institute and PwC ranked San Antonio the #20 market for investment in their “Emerging Trends in Real Estate 2019.” HEADQUARTERS CAMPUS CAMPUS HEADQUARTERS RECENT CPS ENERGY
11 1604 CPS ENERGY | SAN ANTONIO PORTFOLIO As exclusive advisor to CPS Energy, CBRE is pleased to present the exceptional http://properties.cbre.us/CPSEnergyPortfolio opportunities profiled below. Offers encompassing the entirety of the portfolio or any
1604 SAN ANTONIO Six Flags one or more of its components will be considered. Fiesta Texas INTERNATIONAL
INTERSTATE University of AIRPORT Texas at San 410 Antonio 1 HEADQUARTERS CAMPUS 3 o 2 Office Buildings, 2 Parking Garages, & Surface Parking 10 San Antonio o Premier Repositioning or Redevelopment Opportunity International NORTH CENTRAL Airport 35 SAN ANTONIO o Coveted Downtown San Antonio | River Walk Location
410
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2 VILLITA ASSEMBLY BUILDING 4 10 o Iconic Freestanding Downtown Event Center UTSA o Unique Repositioning & Renovation Opportunity Downtown DOWNTOWN Campus 1 SAN ANTONIO o Prime River Walk Location 2 90
Port San Antonio Lackland Air Force Base 3 NORTHSIDE CUSTOMER SERVICE CENTER Brooks EXCLUSIVE MARKETING ADVISORS City-Base 37 o Freestanding Office Building with Surface Parking 1 o Unique Repositioning & Redevelopment 35 o High Traffic Location in North Central San Antonio
410 JARED CHUA JOHN ALVARADO JENNIFER JOSEPH Senior Vice President Senior Vice President Associate 713.787.1975 214.979.5670 512.499.4974 [email protected] [email protected] [email protected] 281 4 2 3 4 JONES AVENUE LAND
GENE WILLIAMS o Exceptional Downtown San Antonio Location First Vice President o River Walk Frontage & Access | Connectivity
210.253.6027 SUMMARY S ummary EXECUTIVE E xecutive [email protected] 12 1604 RECENT CPS ENERGY HEADQUARTERS CAMPUS
EXCLUSIVE MARKETING ADVISORS
JARED CHUA JENNIFER JOSEPH GENE WILLIAMS JOHN ALVARADO Senior Vice President Associate First Vice President Senior Vice President 713.787.1975 512.499.4974 210.253.6027 214.979.5670 [email protected] [email protected] [email protected] [email protected]
DEBT & STRUCTURED FINANCE
CASEY KNUST Executive Vice President 512.499.4950 [email protected]
For additional information regarding this opportunity, please visit the property website at www.cbre-recentcpsenergyhqcampus.com.
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