DOWNTOWN (± 18 MILES) GARRETT GILLELAND Director 512.532.1968 [email protected]

DREW FULLER Director 512.532.1931 FM 1431/WHITESTONE BOULEVARD [email protected]

SCHAFER SMART Analyst 512.532.1971 [email protected]

DEBT CONTACT KYLE SPENCER Senior Director 512.532.1921

N BELL BOULEVARD [email protected]

28.17 ACRES

CAPITAL METRO RAIL REDLINE

CEDAR PARK STATION CEDAR PARK • | OFFERING MEMORANDUM AUSTIN-ROUND ROCK MSA CEDAR PARK STATION

EXECUTIVE SUMMARY HFF is pleased to offer the unique opportunity to purchase a 28.17-acre mixed-use development site in Cedar Park, Texas, a nationally recognized growth leader located in the northwest suburbs of Austin, Texas. Cedar Park Station (The “Property”) offers exceptional frontage and visibility on the heavily traveled US 183 (N Bell Blvd), which is minutes from the bypass route 183A . Located at 1700 N Bell Blvd, the Property is 24 miles from , 11 miles from The Domain mixed-use development and ideally positioned on the western edge of Williamson County, which has seen 21% population growth over the last five years adding over 80,000 new residents. This highly desirable location is ideally suited for a mixed-use development given its ease of access to major thoroughfares (US 183/183A Toll Road, 1431 and SH 45) as well as the close proximity to employers and economic drivers. This offers investors a tremendous opportunity to acquire a rare piece of developable land in one of the most dynamic growth corridors in the nation.

PROPERTY SUMMARY PRICING Contact HFF

LOCATION 1500-1700 N Bell Boulevard Cedar Park, Texas 78613 SITE AREA 28.17 Acres ZONING General Retail General Office Light Industrial CURRENT USE Raw Land

2 CEDAR PARK STATION

CEDAR PARK INVESTMENT HIGHLIGHTS SITE Outstanding Development Location

ROUND ROCK • Cedar Park Station is ideally situated in the heart of one of the BRUSHY CREEK fastest growing municipalities in the country; Cedar Park, Texas • Cedar Park was one of the 12 fastest-growing communities in the country in 2016, with a growth rate of 4.5% LAKELINE 1 • Additionally, Cedar Park has finished within the top 25 in popula- tion growth every year since 2015 WELLS OLLYVILLE BRANCH • The population within a 3-mile radius of the Property is currently ANDERSON MILL PFLUGERVILLE 78,268, an increase of 21% since 2010. The 3-mile population is expected to increase 10% by 2022 Established Intersection with Ideal Access • The Property is situated just north of one of Cedar Park’s key intersections, Whitestone Blvd and Bell Blvd • This intersection is home to anchor retailers H-E-B and Walmart Supercenter as well as retailers such as Bank of America, Chase Bank, McDonald’s and Panda Express

NORTHWEST • The Property offers exceptional access to major thoroughfares HILLS WINDSOR HILLS – US 183A Tollway, US 183 and SH 45 Tollway – providing rapid connectivity to key destinations in Austin’s high growth North- CRESTVIEW west submarket • This best in class access presents potential investors with a wide array of future development opportunities WESTLAKE HILLS Critical Mass

TARRYTOWN • At 28.17 acres, the Property is one of the larger tracts available

EAST AUSTIN within a 3-mile radius, and the largest tract available near the WESTLAKE intersection of Whitestone Blvd and Bell Blvd DOWNTOWN • This scale creates the ideal candidate for a planned develop- ment rezone from the current GR/GO/LI zoning with approval OAK HILL from the City of Cedar Park SOUTH AUSTIN • A Planned Development rezone could allow for a multitude of EAST RIVERSIDE uses, including office, retail and multifamily, fulfilling the City of Cedar Park’s wishes for mixed-use and higher density use Austin • This impressive scale is coupled with a development friendly International site, offering ample frontage along Bell Boulevard and a square Airport boundary

3 CEDAR PARK STATION

LAKELINE MALL

FM /W HITES TONE BLVD

Cedar Park Town Center - 800 Homes

D R A V E L U O B L L E B N

4 CEDAR PARK STATION

PROPERTY OVERVIEW

Location: 1700 Bell Ave, Cedar Park, Texas City: Cedar Park County: Williamson County Site Area: 28.5 Acres Zoning: General Retail General Office Light Industrial *PD Rezone Likely HFF has had several coversations with the City of Cedar Park, and based on conversations with them, this Property is a prime candidate for a PD (Planned Development) as it is located in a Focused Planning Zone This allows potential investors the ability to obtain favorable zoning based on desired development Tracts (5): 1 - 9.997 Acres - GR Zoning 2 - 4.490 Acres - LI Zoning 3 - 5.002 Acres - GO Zoning 4 - 6.651 Acres - GR Zoning 5 - 2.174 Acres - GR Zoning Access: Potential access points have been identified by the department of transportation Watershed: South Brushy Creek Floodplain: No portion of the Property lies within boundaries of FEMA 25 and 100 year floodplain Topography: Site contains level topography

*HFF encourgaes prospective buyers to discuss viablity of a rezone with the City of Cedar Park and makes no warrants regarding the viability of a rezone

5 CEDAR PARK STATION

2 - 3.25 Acres - LI Zoning 4 - 12.8 Acres - GR Zoning 1 - 6.24 Acres - GR Zoning 5 - 3.71 Acres - LI Zoning 3 - 2.17 Acres - GO Zoning

NOT PART OF SALE

General Retail General Office Light Industrial

*Please Note, this is the current zoning of the Property. HFF has had several conversations with the City of Cedar Park, and based on conversations with them, this Property is a prime candidate for a PD (Planned Development)

6 CEDAR PARK STATION

LOCATION OVERVIEW

OUTSTANDING LOCATION Located 24 miles from Downtown Austin, Cedar Park is now the third largest city in the Austin DEMOGRAPHICS MSA; with a population exceeding 65,000 people in the city limits and over 171,000 people in 1-Mile 3-Mile 5-Mile the trade area. 2017 Population Estimate 6,602 78,268 151,936 ADVANCING DEMOGRAPHICS 2022 Population Projection 7,241 86,957 169,637 Bolstered by Northwest Austin’s strong tech presence and quality amenities, the area surrounding the Property has flourished in recent years with population increasing 21% since Percent Change: 2017 to 2022 10% 11% 12% 2010 within a 3-mile radius of the Property. Additionally, average household income is 36% over the national average within 3 miles of the Property. 2017 Est. Average Household Income $87,879 $106,347 $111,161 2017 Est. Median Housing Value $189,980 $227,504 $245,823 SYNERGISTIC RELATIONSHIP WITH NEARBY HOSPITAL/MOB & SURROUNDING RETAIL DEVELOPMENTS Cedar Park Regional Medical Center Cedar Park Regional Medical Center is a 290,000 square foot Join Commission accredited hospital offering comprehensive health care services to Cedar Park and surrounding communities. Located in close proximity to the Property, presenting an opportunity to capitalize on the largest private employee base in the city. DRIVE TIMES

H-E-B Center at Cedar Park Whitestone Blvd The H-E-B Center at Cedar Park, a 6,800 seat multi-purpose event center, is home to the 1 MINUTE Texas Stars, the affiliate of the Stars and the Austin Toros, the NBA D-League team of the . Since opening in September 2009, over Highway 183 A 1 million people have attended events ranging from sports and concerts to Cirque du Soleil 3 MINUTES in the Center. The center has hosted music artist including Carrie Underwood, Eric Church, Highway 183/SH 45 Intersection Def Leppard, Rascal Flatts, and Motley Crue. Cedar Park Center is the premier multiuse 11 MINUTES entertainment facility of Central Texas hosting more than 130 events per year including sporting events, concerts, and family shows. The Domain 20 MINUTES 1890 Ranch Shopping Center Adjacent to the Cedar Park Regional Medical Center, 1890 Ranch is the complete shopping, Austin dining and entertainment destination for the Cedar Park and Leander communities. The center 29 MINUTES offers over 80 stores, services, restaurants and entertainment options including anchors such as Academy, Super Target, PetSmart, Hobby Lobby, Bealls and 12 screen Cinemark theater Austin Bergstrom International Airport complex. 40 MINUTES

The Parke The Park is a newly completed retail center located just east of the Property. This 42 Acre, 400,000 retail center features 365 by Whole Foods, Dick’s Sporting Goods, Field and Stream, Nordstrom Rack and over 40 other top quality retailers. This retail center serves as a major consumer traffic driver for Cedar Park, and cements the area as a regional retail hub.

7 CEDAR PARK STATION

1890 Ranch 900,000 square foot retail center 100% Occupied

Whitestone Blvd Cedar Park 63,000 VPD Center 40,000 VPD 37,000 VPD The Parke 400,000 square foot retail center Cedar Park 98% Occupied Town Center 181,000 square foot New Hope Drive retail center 100% Occupied

N BELL BLVD 36,000 VPD

8 CEDAR PARK STATION

Ronald Reagan Blvd

LEANDER

N Bell Blvd

Whitestone Blvd

SITE

Whitestone Blvd BRUSHY CREEK ROUND ROCK CEDAR PARK

FM 620

LAKELINE 1

WELLS OLLYVILLE BRANCH FM 620 ANDERSON MILL Anderson Mill Rd PFLUGERVILLE

Parmer Lane

9 CEDAR PARK STATION

AUSTIN APARTMENT MARKET OVERVIEW NORTHWEST SUBMARKET OVERVIEW Austin’s multi-housing market has continuously been supported by strong fundamentals, low The Northwest Submarket is comprised of 27,949 units in 94 properties making it the largest unemployment levels, numerous corporate relocations, low cost of living and one of the fastest submarket in the Austin MSA. The Northwest submarket has performed extremely well due growing economies in the world. The metro area is a national forerunner in both population to strong population and job growth experienced in the “Tech Triangle” of Northwest Austin. and job growth as a 159 people move to Austin every day with 31% of the population in the prime renter age of 18-34. Demand for luxury rental options is a prevailing theme is this market with only 4,228 Class A units available –15% of submarket inventory compared to 28% for Austin overall. Lack of supply and increased demand for high-end properties has led to robust rent Occupancy /Absorption grow as Class A units have seen effective rents increase 3.4% in the first quarter Average occupancy in Austin is 92.3% according to first quarter figures, slightly higher than alone. With only 836 units (3% of inventory) currently under construction, there exist previous quarter demonstrating Austin’s continued stability despite 7,668 units being delivered an excellent opportunity for properties to benefit from pent up demand for best-in- in the past 12 months. Austin has seen positive net absorption for 12 of the last 13 quarters as class features by enhancing the community amenities and unit interiors to compete heightened supply has been met with even greater demand due to the city’s unprecedented more directly with new product. in-migration. Stabilized Class A and Class B properties continue to show strong demand and finished the first quarter with average occupancy levels of 92.8% and 94.2%, respectively. Demand for Austin apartments remains robust as 5,812 units of net absorption were recorded during the last 12 months. The development pipeline is also strong, and firms are planning to break ground on approximately 9,649 units over the next 12 months. Austin’s continued population growth and strong market fundamentals position the city to readily absorb this new supply.

Rental Rates Rental rates in Austin have mirrored rising occupancies. Monthly average rental rates are currently $1,215 ($1.41 PSF), up from $1,179 ($1.34 PSF) at this time last year, representing a 3.1% annual growth rate. Class A product currently commands rental rates of $1.72 PSF.

Market Comparison – 2Q2016 Total Units Occupancy Monthly Rent Rent PSF Austin 176,895 92.30% $1,206 $1.41 Northwest 27,949 93.00% $1,139 $1.28 Comp. Set 1,982 93.6%* $1,293 $1.38 *Stabilized Source: Apartment Data Systems

10 CEDAR PARK STATION

Austin Office Absorptions vs. Deliveries 5,000,000 93% AUSTIN OFFICE MARKET 4,500,000 92% 4,000,000 91% The Austin office market has become one of the nation’s strongest, led by strong market fundamentals and 3,500,000 90% booming population growth, with an average of 159 people moving to Austin each day. Recently ranked by ULI 3,000,000 89% as the “#1 City for Real Estate Investment,” Austin continues to mature into a highly diverse market, attracting 2,500,000 88% top companies like Apple, Google, Facebook, Samsung, AMD, and Amazon. This growth is in addition to 2,000,000 87% famous Austin flagships such as , Homeaway, and Whole Foods. These companies continue to grow 1,500,000 86% their already immense real estate footprints while enjoying the pro-business climate and highly educated 1,000,000 85% 500,000 84% workforce. The new Dell Medical School has led to the local expansion of pharmaceutical companies as 0 83% Austin emerges as a biotech center of the South. Between 2005 and 2015, Austin saw 38% population growth, 2010 2011 2012 2013 2014 2015 2016 2017 YTD more than tripling the national average of 9%. These drivers, among many others, have contributed to Austin Absorption Deliveries Occupancy being named the “Best Place to Live in the US” by U.S. News and World Report in 2017.

Inventory/Absorption Austin Office NNN Rental Rates & Occupancy $25.00 94% • The Austin office market has grown from 89.6 million square feet in 2013 to 98.2 million square feet of $24.00 product today – an increase of 10% during the five-year span, doubling the previous five-year increase of 4% 92% $23.00 • Total net absorption has stayed positive for 15 years in a row, averaging 1.8 million square feet of net $22.00 90% absorption every year since 2003 $21.00 88% • During that same 15 year run the market has delivered an average of 1.5 million square feet of product every $20.00 year, with net absorption outpacing deliveries by 4.1 million square feet $19.00 86% $18.00 84% Occupancy $17.00 • Occupancy rates continue to hold strong at 91.5% which is a 5.4% increase since 2010, in a market that has $16.00 82% delivered 10.6 million square feet during that time 2009 2010 2011 2012 2013 2014 2015 2016 2017 YTD • 2014-2017 YTD saw 8.9 million of that 10.6 million square feet delivered, while boasting an astonishing 3.3% Austin Austin Occupancy increase of occupancy rates during that four-year period • Occupancy is expected to continue to increase with heavy demand for space from job and population TOP OFFICE OWNERS IN AUSTIN growth and strong pre-leasing on planned projects

Rental Rates • Since 2010, Austin NNN office market rents have increased 40.2%, from $17.01 per square foot to $23.84 per square foot today • Today’s Austin NNN office rents of $23.84 per square foot are an all-time high, but still a significant discount to competitive cities, drawing continued corporate expansions and relocations • Since 2010, the Austin office market has experienced an average annual rent growth of 5.0%

FOREIGN INVESTMENT IN AUSTIN 11

GERMANY SWITZERLAND ISRAEL UNITED KINGDOM

MEXICO SOUTH KOREA CANADA CEDAR PARK STATION

OCCUPANCY & RENTAL RATES $22.00 97.0% 96.5% $21.00 96.0% $20.00 95.5% AUSTIN RETAIL MARKET OVERVIEW $19.00 95.0% 94.5% Austin’s retail market continues to flourish, supported by strong fundamentals including immense $18.00 94.0% population growth, low unemployment levels and a lack of development. Nation leading $17.00 93.5% 93.0% $16.00 population and housing growth have spurred increase user demand from national, regional and 92.5% local tenants. This increased demand has been met with a lack of available product, leading to $15.00 92.0% increased occupancy and rental rates. Markets like Cedar Park have benefited the most from this 2010 2011 2012 2013 2014 2015 2016 Q2 2017 population boom as the suburbs of Austin lead the way in population growth according to the Occupancy Rental Rates US Census Bureau. ABSORPTION, DELIVERIES & OCCUPANCY 2,500,000 97.0% 96.5% 2,000,000 96.0% Inventory/Absorption 95.5% • The overall Austin retail market consists of 9,369 properties totaling 108 million square feet of 1,500,000 95.0% space (single and multi-tenant properties), an increase of 14% since 2007 94.5% 1,000,000 94.0% • The Austin retail market has experienced net positive absorption every year since 2007, 93.5% averaging 2.07 million square feet annually 500,000 93.0% 92.5% • Since 2007, the market absorbed 18 million square feet of product, outpacing deliveries by 7.2 0 92.0% million square feet 2010 2011 2012 2013 2014 2015 2016 Q2 2017 Absorption Deliveries Occupancy Occupancy • The amount of vacant space in the Austin market has steadily trended downward since 2007 when the average retail occupancy level was 93.2% TOP RETAIL OWNERS IN AUSTIN • As of second quarter 2017, occupancy rates are the highest they have ever been at 96.3% • With only 1.1M square feet under construction market wide, occupancy rates are expected to remain low

Rental Rates • Average quoted rental rates in the Austin retail market are $21.27 per square foot NNN, an increase of 20% since 2014 • Healthy absorption, limited product, and few new deliveries provide landlords the opportunity to continually push rental rates

12 CEDAR PARK STATION

BOOMING AUSTIN ECONOMY Although it maintains a laid-back vibe, the city dedicated to “Keeping Austin Weird” shows no signs of slowing down. A booming economy, growing job market, high quality of life and low cost of living make Austin a sought-after city for all ages. As one of the nation’s top economic performers, Austin is a thriving city with a young, highly educated and vibrant population that attracts business a tourism. The metro leads the nation in terms of population growth, fueled largely by the strongest rate of in-migration with an impressive 157 people moving to the city a day. The 11th largest population among U.S. cities, Austin’s population has expanded 16% between 2010 and 2015. Compared to all large metros in the country, Austin ranked No. 2 in growth for the five-year period. The population explosion of the Texas capital, which reached approximately 2.1 million last year, is expected to soar 98.5% to nearly 4 million by 2040. Nearly doubling in size, Aus- tin’s population is projected to grow faster than any other large U.S. city in the next 25 years. Named among Forbes 10 Best Cities for Jobs, Austin has one of the best job mar- kets in the nation. In the 12 months ending in November, the Austin metro added 19,500 net new jobs, a growth rate of 2.0%. For this period, Austin is the 25th fastest growing major metro. Austin’s seasonally adjusted unemployment rate is currently 3.0%.

EMPLOYMENT GROWTH POPULATION GROWTH 3.5% 98%

97% 3.0%

96% 2.5% 95%

94% 2.0%

93% 1.5%

92% 1.0% 91%

90% 0.5% 2009 2010 2011 2012 2013 2014 2015 2016 2011 2012 2013 2014 2015

United States Texas Austin United States Texas Austin

13 CEDAR PARK STATION

LIVE, WORK, PLAY Consistently named among the best places to live and work, Austin is universally regarded for its thriving economy, low cost of ACCOLADES living and enviable quality of life. Austinites enjoy a reasonable cost of living with a median home price that is below the national average, lack of state taxes and the highest per capita income of all major cities in the Lone Star State. In addition to a burgeon- ing downtown and prosperous employment opportunities the city offers many museums, performing arts venues, sports events Fastest Growing City and recreational activities. Affectionately deemed The Live Music Capital of the World, Austin boasts 1,700 live music venues and For 4th Consecutive Year is home to (SXSW) and the ACL Music Festival, two of America’s largest media events. Austin is an enchant- ing city celebrated for its robust natural beauty and abundance of outdoor amenities, including , Austin Hike and - Forbes Bike Trail, Barton Creek, and numerous greenbelts. Central Texas boasts a cosmopolitan atmosphere without the big city stress and it is not hard to see why many people love to call Austin home. #1 Job Market 2017 - NerdWallet

22.6 MILLI ON No. 2 for Economic Performance - Milken Institute ANNUAL AUSTIN MS A VISTORS

Top 10 City for Millennials $6.7B - WalletHub AUSTIN ANNUAL ECONOMIC FESTIVAL IMPACT REVENUE FROM #1 Next Biggest Boom Town VISITOR - Forbes SPENDING

F1 SXSW ACL X GAMES

14 CEDAR PARK STATION

# OF AUSTIN SILICON HILLS CORPORATE Austin’s economy continues to benefit from the technology sector boom that began in the 1990s, dubbing the metropol- RELOCATIONS itan area “Silicon Hills”. Austin is quickly emerging as a destination of choice for tech startups, as many of the nation’s SINCE 2004 top technology companies have a significant presence in Silicon Hills, including Apple, Google, Facebook, Oracle, , Dell, IBM and Samsung to name a few.

TECH JOBS ADDED IN AUSTIN VS THE U.S.

RECENT ANNOUNCEMENTS

3,600 NEW JOBS 1,000 NEW JOBS

1,200 NEW JOBS 500 NEW JOBS

500 NEW JOBS 600 NEW JOBS

4TH HIGHEST 36.4% GROWTH RATE GROWTH IN THE STEM JOBS COUNTRY

15 GARRETT GILLELAND DISCLAIMER Director This Offering Memorandum has been prepared by HFF for use by a limited of recipients. All information contained herein has been obtained from 512.532.1968 sources other than HFF, and neither Owner nor HFF, nor their respective equity holders, officers, employees and agents makes any representations or [email protected] warranties, expressed or implied, as to the accuracy or completeness of the information contained herein. Further, the Offering Memorandum does not constitute a representation that no change in the business or affairs of the property or the Owner has occurred since the date of the preparation of the Offering DREW FULLER Memorandum. All analysis and verification of the information contained in the Offering Memorandum is solely the responsibility of the recipient. HFF and Director Owner and their respective officers, directors, employees, equity holders and agents expressly disclaim any and all liability that may be based upon or relate 512.532.1931 to the use of the information contained in this Offering Memorandum. [email protected] Additional information and an opportunity to inspect the property will be made available upon written request to interested and qualified prospective investors.

SCHAFER SMART Owner and HFF each expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers regarding the property and/or Analyst terminate discussions with any entity at any time with or without notice. Owner shall have no legal commitment or obligations to any recipient reviewing this Offering Memorandum or making an offer to purchase the property unless and until such offer is approved by Owner, a written agreement for the purchase of 512.532.1971 the property has been fully executed, delivered and approved by Owner and its legal counsel, and any obligations set by Owner thereunder have been satisfied [email protected] or waived.

DEBT CONTACT The recipient (“Recipient”) agrees that (a) the Offering Memorandum and its contents are confidential information, except for such information contained in KYLE SPENCER the Offering Memorandum, which is a matter of public record, or is provided from sources available to the public (b) the Recipient, the Recipient’s employees, agents and consultants (collectively, the “need to know parties”) will hold and treat it in the strictest of confidence, and the Recipient and the need to know Senior Director parties will not, directly or indirectly, disclose or permit anyone else to disclose its contents to any other person, firm, or entity without the prior written 512.532.1921 authorization of HFF and the Owner, and (c) the Recipient and the need to know parties will not use or permit to be used this Offering Memorandum or its [email protected] contents in any fashion or manner detrimental to the interest of the Owner or HFF or for any purpose other than use in considering whether to purchase the property. The Recipient and the need to know parties agree to keep this Offering Memorandum and all confidential information contained herein permanently confidential and further agree to use this Offering Memorandum for the purpose set forth above. If the Recipient has no interest in the property, or if in the future the Recipient or owner discontinue such negotiations, the Recipient will return this Offering Memorandum to HFF.