FOR SALE - STONEY RIDGE MASTER-PLANNED INDUSTRIAL SITES TX-130, FM 973, and Elroy Roads, , TX 78617 Located in the opportunity zone.

SITES

SITES

SITE

LOCATION: There are several industrial sites located within FLOOD A portion is in the FEMA floodplain. the Stoney Ridge development. HAZARD:

JURISDICTION: City of Austin UTILITIES: All Available – City of Austin PRICE: Pricing available upon request and dependent upon size, location, and delivery of infrastructure. Industrial zoning to be delivered ZONING: Cash is preferred. Seller would entertain a JV scenario.

COMMENTS: There are a handful of industrial tracts and can TOPOGRAPHY: Some areas of the Property have topography be sized from 3 acres to 220 acres for the that is not ideally suited for developnent. property in its entirety. Light Industrial Zoning will be delivered.

CONTACT Spence Collins Office: (512) 472-2100 [email protected]

This property is presented subject to prior sale, change in price, or removal from the market without notice. All information shown in this brochure, while based upon information supplied by the owner and from other sources deemed to be reliable is not in any way warranted by McAllister & Associates or the owner of the property. 201 Road Austin, Texas 78704 Interested persons are encouraged to retain legal and technical consultants to advise them of any and all aspects of this property. This report is for your use as long as you (512)472-2100 FAX: (512)472-2905 have need of it, but at all times remains the property of McAllister & Associates. Under no circumstances is any of this report to be reproduced, copied or in any way duplicated without the express written consent of McAllister & Associates.

THE TESLA EFFECT

By Shonda Novak [email protected]

Del Valle, an underdeveloped area of southeastern Travis County that had seen minimal commercial investment for decades, was already poised for growth.

Grocery chain H-E-B is sniffing around an area badly in need of a grocery store. A Chanel subsidiary has a skin care products factory in the works in the area. Software company Zoho plans to build a headquarters nearby, employing hundreds.

But with last month’s announcement that Tesla Inc., the worldwide darling of the electric automobile industry, would invest at least $1 billion in the area and employ 5,000 in manufacturing jobs, many are now wondering whether its so-called gigafactory will trigger a sea change to this often neglected area of Travis County.

On 2,100 acres just off Texas 130, Tesla is already — in the words of one developer — “moving at the speed of Elon” Musk, as bulldozers move dirt to pave the way for the huge assembly plant.

Work on the site comes after the county and Del Valle school officials approved a combined $60 million in local tax breaks for the Californiabased company run by billionaire Musk.

Tesla’s arrival is expected to rev up development — bringing in jobs, retail options and more housing — in an area that historically has lacked employment centers and fundamental services.

“No libraries, no community centers, no public spaces for families to enjoy, and the primary park is behind barbed wire fences,” said Travis County Commissioner Jeff Travillion, whose district covers a large part of the Del Valle area, including the Tesla site.

Development in the area could transform a community whose residents are nearly twice as likely to be Black compared with Travis County as a whole. The area’s concentration of Latino families is also above average for the county. As in many communities of color, the household incomes lag those in areas with a larger percentage of whites. Within Del Valle Independent School District’s boundaries, the average median income is $20,000 less than Travis County at large, according to U.S. Census Bureau data.

Travillion, like many others in the region, sees a huge upside to Tesla’s arrival. But the question for him is whether that growth can be managed in a way that not only builds wealth for Del Valle’s residents, but also creates a “whole community” with the amenities and services the area has long lacked.

“I hope we can build sustainability while we are building the economic infrastructure for that area,” Travillion said. “I’m optimistic. It can lead this community to a thriving future, but we cannot forget our most vulnerable populations.”

‘Jet fuel’ for the area

Musk has promised to make the new Tesla site at Texas 130 and Harold Green Road a “stunning” addition to the area, complete with publicly accessible hiking and biking trails and a boardwalk along the .

The planned 4.5-millionsquare- foot factory will make Tesla’s Cybertrucks and Model Y electric crossover utility vehicles. About 65% of those jobs will involve unskilled labor that doesn’t require a college degree, Tesla executives have told local officials.

Tesla’s factory could open as soon as next year. Local developers and others predict it will be a juggernaut that will dramatically accelerate the commercial and residential growth already happening in the Del Valle area, as well as in nearby Manor and Colony Park.

In recent years, Del Valle has seen new rooftops proliferate by the thousands, and tens of thousands more homes are proposed. But the growth the area has been seeing is nothing like what’s to come as Tesla primes the pump, local developers say.

“What we believe is that Tesla and the ancillary companies that will follow them is like throwing gasoline on the fire,” said Doug Launius, who with business partner Karl Koebel leads Austinbased Marketplace Real Estate Group. “It’s already busy out here, but now with Tesla the growth is going to be exponentially faster.”

Launius’ and Koebel’s company owns or controls 900 acres in southeastern Travis County. The area is home to Austin-Bergstrom International Airport; major highways such as Texas 71 and the Texas 130 toll road; the Del Valle school district; and the racetrack.

On a recent tour of the area, Launius reiterated what he told the Statesman in a 2018 interview: “Southeast Austin is going to explode.”

Other developers familiar with the area agree, including Pete Dwyer, a developer in nearby Manor. Dwyer said the site chosen for the Tesla plant — previously home to a Martin Marietta sand and gravel mining site — has long been ripe for something with more impact on the area.

“Saying nothing bad about the sand and gravel industry, because we pour a lot of concrete, but I think that for years, ever since we opened Austin-Bergstrom International Airport (in 1999), we have all been looking out our airplane windows at all the holes in the ground on this (Martin Marietta) site and thinking, ‘Yuck, I wish we could do something with that,’ and now it sounds like it will be a crown jewel,” Dwyer said.

Ari Rastegar, founder and CEO of Rastegar Property Co., said the Del Valle area “already was growing massively, and this just threw jet fuel on the entire area.” Likewise, the Texas 130 corridor is undergoing a “massive resurgence,” he said.

“We’ve already seen a plan for over 10,000 rooftops that are either going to be proposed or are in the process or the pipeline to go throughout that corridor,” Rastegar said. “We believe from recent activity that up and down 130 is going to be the industrial backbone of Austin.”

AToyota-like impact?

In 2003, Toyota announced it would begin building trucks on a 2,600-acre site south of San Antonio. Like Del Valle, the area surrounding that site was largely undeveloped, lacking investment and infrastructure.

Seventeen years later, Toyota now employs 3,200 people at the facility, with an investment of $2.7 billion in the area. Related suppliers to the plant employ 4,000 more, providing jobs to semiskilled workers and offering opportunities for a career in manufacturing with above average wages for people who need only certification instead of extended college education.

San Antonio Chamber of Commerce President Richard Perez was on the San Antonio City Council when Toyota signed its deal with local governments and the state of Texas that included incentives similar to those offered Tesla.

“It really solidified the fact that manufacturing had a real place in San Antonio,” Perez said. “I have seen it in actual practice and the prestige it brings. It is real.”

Perez said what set Toyota apart from other auto plants was the company’s decision to have tier-one suppliers — companies that produce auto parts used in the plant’s Toyota Tundras and Tacomas — on site. That set off a mad dash to locate at the southern San Antonio site. In the following years, warehouses and other related industrial sites flourished in the area.

The same could happen in Del Valle, and many are already showing interest. Launius said the nearby Velocity development has 314 acres available, and some of the companies that do business with Tesla no doubt will come calling.

“We’ve been contacted by companies all around the world that are interested in real estate around the Tesla site for investment and/or future development,” Launius said.

Much of the Del Valle area is in a federal Opportunity Zone, offering investors and companies potential tax advantages. It’s also in an area where the city of Austin has worked to encourage development, away from more environmentally sensitive areas in western Travis County.

Marketplace owns 67 acres just minutes from Tesla’s planned gigafactory, where the developer plans industrial development.

“We get calls every day on every property, and that is not an exaggeration,” Launius said. Those calls include homebuilders seeking sites. “They know what’s coming,” Launius said. “They are building homes as fast as they can.”

If Tesla builds it, houses will come

The eastern part of Travis County has become more attractive to homebuilders as land prices increase and land availability decreases west of Interstate 35, according to experts including real estate consultant Charles Heimsath. The Del Valle area remains one of the few places that still has housing within reach of working-class families, generally priced from about $200,000 to about $350,000.

Dwyer, who has been working in the Manor market for years, said that, with Tesla’s announcement, “the batteries are now fully charged.”

However, special financing districts, such as public improvement districts and municipal utility districts, need to be approved “so we can build the badly needed infrastructure,” said Dwyer, who has developed several communities in Manor.

Metrostudy, which tracks the Central Texas housing market, said Del Valle’s market for new homes has been growing for the past few years, but development really rose in the past year or so. Metrostudy is tracking about 30,000 lots that either have been platted or are in the planning stage.

In the second quarter of this year, builders started work on 368 homes in Del Valle. That’s up 84% over the second quarter of 2019, Metrostudy said.

In the Easton Park subdivision at William Cannon Drive and McKinney Falls Parkway, development and home sales during the past year were strong, said Vaike O’Grady, Metrostudy’s regional director in Austin.

“The community started 447 homes in the trailing 12 months ending June 30, and there are more than 7,000 lots remaining for development at Easton Park. The Tesla announcement will likely push sales pace even more,” O’Grady said.

New home prices in Del Valle average around $250,000, O’Grady said.

Avison Young, a global commercial real estate services firm with Austin offices, said that Tesla choosing Austin for its gigafactory will usher in “a new wave of interested investors and developers” flocking to overlooked areas in Del Valle and Manor.

Avison Young’s land development and industrial team — Sullivan Johnston, John Baird and Michael Kennedy — said they have seen a tremendous amount of interest in the properties Avison Young represents in the Manor area.

“We have felt a steep rampup of interest in sites near U.S. 290 and Texas 130 over the last year and expect that trend to continue,” Johnston said.

Turning point for Del Valle schools?

The Tesla plant also could be a boon to the Del Valle school system, district officials say.

The district, which schools roughly 11,000 students, could see an increase in its tax revenue even as it inked a deal July 10 that gave Tesla an estimated $46.4 million tax break. Del Valle school board President Rebecca Birch said Tesla’s arrival in the Del Valle area could open up opportunities for its students. Having a major employer nearby creates more potential for internship and mentorship programs.

And while Tesla’s tax contribution is being limited for 10 years through the incentive agreement, it will generate far more revenue for the district than the concrete plant currently on the site. District officials estimate Tesla will generate $1 million a year in tax revenue for the district’s maintenance and operations. The uncapped part of Tesla’s tax bill for the school district could generate as much as $2.6 million a year. That won’t close the gap in Del Valle’s finances, which showed the district spending $18 million more than it took in last year. But it will help, Birch said.

“We’re excited about the opportunity and can’t wait to see what this means for our kids,” she said. “We made sure that we put students first, and we hope this means everything we dream it will.”

“I think that for years, ever since we opened Austin-Bergstrom International Airport (in 1999), we have all been looking out our airplane windows at all the holes in the ground on this (Martin Marietta) site and thinking, ‘Yuck, I wish we could do something with that,’ and now it sounds like it will be a crown jewel.”

Manor developer Pete Dwyer

Tesla also will give the school district an annual payment of just under $1 million under the agreement. And should the district suffer any financial hardships related to the plant, Tesla has agreed to make up the difference.

How to get there

An unusual aspect of Tesla’s site that a major highway runs right through the site. And that highway, Texas 130, is one of the few that has a capacity for more cars, unlike its often jammed counterparts Interstate 35 and MoPac Boulevard (Loop One). Texas 130 near the Tesla site already is being widened from a four-lane toll road to six lanes. That will increase the highway’s capacity from 53,700 cars per day to 80,600, according to the Texas Department of Transportation. The widening project is expected to finish by year’s end. The highway averaged about 45,922 cars per day in 2019. That number likely will fall when TxDOT tallies figures for 2020 given the coronavirus pandemic’s effect on traffic at large.

FM 973, a two-lane road that runs alongside Texas 130 to Taylor, also is slated to be widened, according to TxDOT.

Diann Hodges, spokeswoman for TxDOT ’s Austin district, said the transportation agency will take a wait- and-see approach before further expanding road infrastructure in the area.

“We work with the owners of all developments, large or small, to assess the impact of their development on our highway network,” Hodges said in an email. “If it’s determined their traffic volumes will have a major effect on our existing roads, we’ll work with them to make improvements to mitigate those impacts.”

While TxDOT has the authority to build out its roads, creating the necessary smaller streets that feed those thoroughfares is complicated by the patchwork nature of Del Valle, where one development might reside within the , while another just yards away does not.

“If you look at a map of the area, it is a checkerboard of jurisdictions,” said Member Delia Garza, whose Southeast Austin district includes many portions of Del Valle. “One area is in the city of Austin; the next is not. It’s a bunch of combined county and city districts.”

That makes it harder to create continuity in building out roads and sidewalks in the area. While a quarter- mile stretch of a road lies within Austin, the next might lie in unincorporated county land. The same goes for libraries and community centers; Garza said the general strategy is to put those facilities in areas that are more densely populated than Del Valle. But the key complaint for Del Valle residents is the lack of a grocery store. Many Del Valle residents must drive as much as 30 minutes — when traffic is light — to get to one. Birch, the school board president, said the closest grocery store to her home is the H-E-B at the Mueller development.

“It is a big deal,” Birch said. “It is a lack of access to high-quality, healthy food.”

Travillion, the county commissioner who represents much of Del Valle, said if Tesla’s plant does create a ripple effect of development in the area, such community amenities will follow. But it will take time. At the speed of government, as it were.

“Some of the things Del Valle needs aren’t going to be measurable from an economic perspective immediately,” he said. “That we have libraries for students to really explore, that is not an immediate outcome. Community spaces for kids when their parents aren’t home — not immediate. We also need to design those resources that give kids opportunities to round out their personalities as well. That’s quality of life.”

Click here to view this article in the eEdition of the Austin American Statesman. 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.

McAllister & Associates 403756 [email protected] 512-472-2100 Licensed Broker /Broker Firm Name or License No. Email Phone Primary Assumed Business Name

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Buyer/Tenant/Seller/Landlord Initials Date

Regulated by the Texas Real Estate Commission InformaƟon available at www.trec.texas.gov IABS 1-0