Premier Mixed-Use Development

F O R T W O R T H , T X

35

30

THROCKM

ORTO

N ST.

TAYLOR ST.

FIRST ON 7TH$20.00 PSF RENT

*RENTAL RATES ARE BY+E

BURNETT PLAZA$26.00 PSF RENT

FROST TOWER$40.00 PSF RENT

NORTHLAND HOTEL DEVELOPMENT

FORT WORTH WATER GARDENS

TEXAS A&M UNIVERSITYSCHOOL OF LAW

FORT WORTHINTERMODAL

TRANSPORTATIONCENTER

180 ROOMS

$28.80 PSF RENT

127 CONDO UNITS

504 ROOMS$34.50 PSF RENT

AC HOTEL DEVELOPMENT$68.5 MILLION

252 ROOMS

777 MAIN$28.50 PSF RENT

PAVILION

INVESTMENT OVERVIEW

A 181,180 Square-Foot Mixed-Use Property Located in Fort Worth, TX

HFF, L.P., as exclusive advisor, is pleased to present to qualified investors the opportunity to acquire The Tower, a 181,180 square-foot

mixed-used property located in Fort Worth, TX. The iconic property is located adjacent to Downtown Fort Worth’s Sundance Square,

one of the nation’s most vibrant 24-hour office, retail and entertainment districts. The Tower consists of two buildings encompassing

two and one-half city blocks located at 500 Throckmorton and 400 & 500 Taylor Street.

Situated in the heart of Downtown Fort Worth, The Tower offers a true “live, work, play” environment. Located directly above the

Property is a fully sold out, 295-unit high-end condominium development that provides consistent demand to retail tenants. The

Class A office space includes convenient parking and access to the many surrounding amenities Sundance Square has to offer.

35

30

THROCKM

ORTO

N ST.

TAYLOR ST.

FIRST ON 7TH$20.00 PSF RENT

*RENTAL RATES ARE BY+E

BURNETT PLAZA$26.00 PSF RENT

FROST TOWER$40.00 PSF RENT

NORTHLAND HOTEL DEVELOPMENT

FORT WORTH WATER GARDENS

TEXAS A&M UNIVERSITYSCHOOL OF LAW

FORT WORTHINTERMODAL

TRANSPORTATIONCENTER

180 ROOMS

$28.80 PSF RENT

127 CONDO UNITS

504 ROOMS$34.50 PSF RENT

AC HOTEL DEVELOPMENT$68.5 MILLION

252 ROOMS

777 MAIN$28.50 PSF RENT

PAVILION

PROPERTY DESCRIPTION

ADDRESS 500 Throckmorton St. 500 Taylor St.

OFFICE SPACE 38,807 SF 68,136 SF

RETAIL SPACE 31,438 SF 42,799 SF

TOTAL SQUARE FEET 70,245 SF 110,935 SF

GLA & OCCUPANCY

COMPONENT GLA (SF) OCCUPANCY

OFFICE 106,943 SF 89.1%

RETAIL 74,237 SF 76.3%

TOTAL 181,180 SF 83.9%

COVETEDWALKABLELOCATION

STABLEIN-PLACECASH FLOW

AFFLUENT TRADE AREADEMOGRAPHICS

CONVENIENT PARKINGIN SUPPLY CONSTRAINED AREA

ICONIC ASSETDEFINING FORT WORTH SKYLINE

2,700

42K$103K

37%MULTIFAMILY UNITS WITHIN

DAYTIME EMPLOYEES WITHIN A H A LF - MILE R A DIUS

AVER AGE HOUSEHOLD INCOME

WITHIN A H A LF - MILE R A DIUS

FORT WORTH CBD SUBMARKET

GROW TH IN M U LTIFAMILY WITHIN

TH E IM M EDIATE TR ADE AR EA SINCE 2013

274KPOPULATIONWITHIN FIVE MILES

INVESTMENT HIGHLIGHTS

COVETED, WALKABLE LOCATION

» Located adjacent to Sundance Square, Fort Worth’s most well-

established mixed-use environment

» Unmatched accessibility to a multitude of renowned amenities

& residential developments – over 50+ walkable restaurants &

1,120 multi-family units (95.7% occupied) within a 0.5-mile radius

» Sundance Square is home to the world-renowned Bass

Performance Hall, the Renaissance Worthington Hotel, over

600,000 square feet of retail space, and is a premier address

for urban residential properties

STABLE IN-PLACE CASH FLOW WITH UPSIDE

» At 83.9% leased, The Tower offers an investor the opportunity

to acquire stable in-place cash flows with the ability to generate

an additional $400K in NOI through the lease up of current

vacancy.

» The Tower offers an investor multiple stable ancillary cash flow

streams, with over $100K in annual parking revenue and over

$78K in annual storage revenue at only 56% leased.

Cantina Laredo

90 WALKABILITY SCOREWALKER’S PARADISE

Cantina Laredo

Cantina Laredo

$103KAVG. INCOME

WITHIN .5 MILE RADIUS

36.1%POPULATION

INCREASESINCE 2010

CONVENIENT PARKING

» Two underground tunnels provide easy, secure, and sheltered

access from the parking garage to The Tower office, retail, and

residential units.

» Among the Property’s 931 total parking spaces, 444 are included

with the Property.

» Per a fixed contract with the City of Fort Worth, the Property

receives revenue ($43,590 annually) for the shared use of a

portion of its spaces.

AFFLUENT TRADE AREA DEMOGRAPHICS

» Within a 1-mile radius of the Property, 38.0% of the population is

between 20 - 34 years old.

» The average household income within a 0.5-mile radius of the

property is $103,000.

» The immediate surrounding 1-mile area has seen its population

increase an impressive 36.1% since 2010.

ICONIC BUILDING

» The 295-unit condominium development located above the

Property initially sold out within 18 months and units are now

listed for as much as $2 million.

» The Property offers a “live, work, play” environment with Class

A retail, office and residential condos (NAP).

295UNITS

INITIALLY SOLD OUT

18 MOS.

UNITS LIST FOR AS MUCH AS

$2M

OFFICE MARKETFort Worth’s attractive market fundamentals and consistent rent growth presents investors with the opportunity to push in-place rental rates and capture further NOI growth.

Fort Worth office demand was at a decade high in 2018, with 1.3 million SF in net absorption. Downtown Fort Worth has been at the forefront of demand growth, averaging 43,000 square feet in positive net absorption since the end of the recession. The city has gained more than 210,000 jobs since 2010 and is nearing a peak of 1.1 million total jobs, representing a 24.5% increase.

Downtown Fort Worth experienced a dip in rental rates and occupancy following the departures of D.R. Horton and XTO Energy in 2015 and 2017. D.R. Horton left the Fort Worth CBD for a build-to-suit in Arlington, where the company’s headquarters was previously located. XTO Energy relocated employees to the 385-acre Houston campus of its parent company, ExxonMobil. These moves resulted in a total of 2,100 jobs leaving the Fort Worth CBD and created over 500,000 SF of vacancy. The Fort Worth CBD office market has firmly rebounded from these events, with vacancies now well below both the metro average and submarket’s historical average and rental rates are at an all-time high demonstrating the strength of the Fort Worth Office Market.

81

83

85

87

89

9191%

89%

87%

85%

83%

81% 2013 2014 2015 2016 2017 2018 2019 YTD

Occupancy Rental Rate

$28.00

$27.50

$27.00

$26.50

$26.00

$25.50

$25.00

FORT WORTH CBD OFFICE - OCCUPANCY VS. RENTAL RATE

RETAIL MARKETWith a weighted average lease term of 4.6 years, combined with the consistent demand and limited available retail space around Sundance Square, The Tower presents investors with a scarce investment opportunity with upside.

Currently 97.8% occupied, the Downtown Fort Worth retail market represents a 145-basis point increase in occupancy since 2012. During the same period, rental rates grew over 250 basis points to $22.37 PSF, a decade-level high. Retail in Sundance Square has significantly outperformed the overall DFW market, achieving 100% occupancy since 2017.

83

86

89

92

95

9898%

95%

92%

89%

86%

83% 2013 2014 2015 2016 2017 2018 2019 YTD

Occupancy Rental Rate

$22.50

$21.50

$20.50

$19.50

$18.50

$17.50

$16.50

FORT WORTH RETAIL - OCCUPANCY VS. RENTAL RATE

A S H I M ’ S H I B A C H I G R I L L

DALLAS - FORT WORTH ECONOMIC OVERVIEW

0% STATE INCOME TAX & AN UNEMPLOYMENT RATE

OF APPROXIMATELY 3%

ONE OF THEMOST DIVERSE

ECONOMIES

IN THE U.S.

LED THE NATION IN JOB CREATION FOR 2018 WITH 116,400 NEW JOBS

N.A.P.

FROM 2019 TO 2023, THE DALLAS/FORT WORTH MSA IS EXPECTED TO RANK

1ST & 4TH NATIONALLY IN POPULATION & JOB

GROWTH, RESPECTIVELY

7TH LARGEST MILLENNIALPOPULATION IN THE UNITED STATES

DFW OFFICE MARKET

RANKED 2ND IN THE UNITED STATES IN ABSORPTION IN 2018

N.A.P.

CONTACTS

If you have any questions or require additional information, please contact the individuals below.

PARKER MCCORMACK | Director | pmccormack@hfflp.com | 469.232.1952

AARON JOHNSON | Director | ajohnson@hfflp.com | 469.232.1987

CHRIS MURPHY | Senior Director | cmurphy@hfflp.com | 469.232.1941

TODD SAVAGE | Managing Director | tsavage@hfflp.com | 469.232.1930

ANALYTICAL SUPPORT

WESLEY GILMER | Analyst | wgilmer@hfflp.com | 469.232.1932

AUSTIN ROSS | Analyst | aross@hfflp.com | 214.692.4704

ACQUISITION DEBT INFORMATION

BRIAN CARLTON | Senior Managing Director | bcarlton@hfflp.com | 469.232.1943

2323 Victory Avenue, Suite 1200Dallas, TX 75219

214-265-0880 214-265-9564www.hfflp.com

©2019 Holliday Fenoglio Fowler, L.P., HFF Real Estate Limited (collectively, “HFF”), HFF Securities L.P. and HFF Securities Limited (collectively, “HFFS”) are owned by HFF, Inc. (NYSE: HF). HFF and its affiliates operate out of 26 offices and are a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform including debt placement, investment advisory, equity placement, funds marketing, M&A and corporate advisory, loan sales and loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF.

Holliday Fenoglio Fowler, L.P. (“HFF”) has been engaged by the owner of the property to market it for sale. Information concerning the property described herein has been obtained from sources other than HFF and we make no representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all references to age, square footage, income, expenses and any other property specific information are approximate. Any opinions, assumptions, or estimates contained herein are projections only and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a buyer. Buyers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change.