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ParklineA T L A K E L I N E
OFFERING SUMMARY
Holliday Fenoglio Fowler, L.P. (“HFF”) a Texas licensed real estate broker.
LAKELINE BLVD
LAKELINE BLVD
N LAKE CREEK PKWYN LAKE CREEK PKWY
LAKELINE MALL DRIVE
LAKELINE MALL DRIVE
Lakeline Mall
Lakeline Plaza
Homestead Shopping Center
ParklineShopping Center
Lake CreekShopping Center
Lake Creek Festival
GREAT HILLSCOUNTRY CLUB &
GOLF COURSE
GREAT HILLSCOUNTRY CLUB &
GOLF COURSE
Market at Lake Creek
ANDERSON MILLVILLAGE
ANDERSON MILLVILLAGE
ANDERSON MILLANDERSON MILL
Lake TravisLake Travis
Lakeline Market
Lakeline Station(10 Minute Walk)
SAVERSSAVERS
ROSSROSSHAVERTYSHAVERTYS
FAST EDDIESFAST EDDIESWATERLOO BILLIARDSWATERLOO BILLIARDS
BURLINGTON COAT FACTORY
BURLINGTON COAT FACTORY
HOBBY LOBBYHOBBY LOBBY
140,000 VPD140,000 VPD
ParklineA T L A K E L I N E
PROPERTY OVERVIEW
Address: 11200 Lakeline Blvd., Austin, TX 78717
Size: 90,000 SF
Occupancy: 100%
Year Built: 2008
Acreage: +/-9.6 Acres
Stories: 1
Zoning: CS-CO
Parking Ratio: 5.1:1,000 (459 surface spaces)
ECONOMICS (IN-PLACE PRO-FORMA)
Base Rent: $1,458,972
Expense Recovery Revenue: $495,876
Other Income: $121,308
Effective Gross Revenue: $2,076,156
Operating Expenses: $498,156
Net Operating Income: $1,578,000
EXECUTIVE SUMMARYHFF is pleased to offer the unique opportunity to purchase Parkline at Lakeline (the “Property”), a one-story 90,000 square-foot office building on 9.6 acres in Austin, Texas. Situated along Lakeline Boulevard and US 183A in the Northwest-Far Northwest submarket, the Property offers extraordinary access to Capital Metro’s Lakeline Station (Metrorail) and multiple key arteries that connect the Property to nearby major employers, rapidly growing residential areas and significant business and retail centers across the city.
Parkline at Lakeline features two creditworthy tenants accounting for 90% of the 100% occupied square footage. With an additional acre of developable land, a 4-year weighted average lease term, and in-place rental rates that are approximately 10% below market, the Property is well-positioned for value enhancement within a short timeframe. As one of the premier office assets in the Northwest submarket, Parkline offers investors a unique opportunity to secure a position in one of the fastest growing submarkets in one of the top office markets in the country.
• CREDIT TENANCY WITH VALUE CREATION OPPORTUNITIES
• IRREPLACEABLE LOCATION AND CONNECTIVITY
• TOP PERFORMING SUBMARKET
• STRONG PROPERTY FUNDAMENTALS WITH DEVELOPMENT POTENTIAL
• THRIVING AUSTIN ECONOMY
DEMOGRAPHICS
1-MILE 3-MILE 5-MILEPOPULATION2018 Estimate 5,667 102,530 218,999
% Change 2010 to 2018 64.3% 26.8% 24.7%
AFFLUENCE & EDUCATIONBachelor’s Degree or Higher 47.5% 41.0% 41.5%
2018 Average Household Income $94,875 $112,283 $122,821
HOUSING & HOUSEHOLDSHouseholds 2018 Estimate 2,401 41,531 86,650
2018 Median Housing Value $256,690 $267,201 $287,70232
CREDIT TENANCY WITH VALUE CREATION OPPORTUNITIES100% leased with 4-years of weighted average remaining lease term provides stable near-term cash flow and value enhancement through execution of new and renewal leases at increased market rates
100% roll by 2023: mark-to-market opportunity for $144,285 in additional annual revenue from in-place rates 9.4% below market
Exceptional tenancy with two investment grade tenants in Cigna (Moody’s: A1) and Taylor Morrison (Moody’s: Baa2) occupying 90% of the rentable square footage
1 acre pad site offers the opportunity for immediate value creation in the near-term with the ability to build up to 13,000 square feet of office or retail product
STRONG PROPERTY FUNDAMENTALS WITH DEVELOPMENT POTENTIALParkline at Lakeline features top-tier design and attractive finishes within an institutionally owned office corridor experiencing robust growth
• Highly functional and flexible one-story tilt wall construction built in 2008
• Above market 5 per 1,000 square feet surface parking
• Up to 13,000 square feet of office/retail development potential on a 1 acre pad site
• Landlord is constructing an additional 43 parking spaces at the corner of Lakeline Blvd. and Lake Creek Pkwy
TERM SCHEDULE
SUITE TENANT SF START EXPIRATION TERM REMAINING TENURE
100 Cigna 65,000 Feb-08 Jan-23 4.4 10.6
150A/B Taylor Morrison 15,595 Feb-12 Jan-22 3.4 6.6
200 EB Quickstart 9,405 May-18 Jan-21 2.4 0.3
WEIGHTED AVERAGES: 4.0 8.8
NEW PARKING(Under Construction)
+/- 13,000 SFPOTENTIAL PAD SITE
DEVELOPMENT
ARCHITECTURE . PLANNING . ENERGY CONSULTATION
09/28/2017
L M HOLDER III FAIA
RENDERING OF PAD SITE DEVELOPMENT
4 5
IRREPLACEABLE LOCATION AND CONNECTIVITYParkline at Lakeline enjoys exceptional access to major thoroughfares including US Highway 183, State Highway 45, Parmer Lane and MoPac Expressway (Loop 1), providing superior access to nearby high growth suburban communities which provides a strong employee base.
Capital Metro’s Lakeline Station is within walking distance of the Property, offering tenants convenient access to the entire metro area on the 32-mile commuter route connecting the rapidly-growing Northwest suburbs to The Domain, Central Austin, East Austin and Austin’s Central Business District.
Proximate to surrounding retail and restaurants including major destinations such as Lakeline Mall, H-E-B anchored Lakeline Market, 1890 Ranch, The Parke, and La Frontera, which are all within a 10-minute drive of the Property and provide an abundance of nearby shopping and dining destinations.
TOP PERFORMING SUBMARKETLocated on the cusp of the market-leading Northwest and Far Northwest submarkets, Parkline at Lakeline provides a unique value-add opportunity in one of the fastest growing areas in Texas and nationally.
With only 1.2 million square feet of product delivered since 2015, the Northwest and Far Northwest submarkets have maintained an average occupancy of 92% and has experienced increased rental rates up 9% from $20.66 per square foot (NNN) in 2015 to $22.61 per square foot (NNN) today.
Northwest-Far Norwest Austin remains one of the preferred corporate destinations with IBM and Amazon housing large corporate campuses near the Property, as well as other major companies such as National Instruments, Apple, Facebook, Dell, eBay, PayPal, Q2, Charles Schwab, Emerson and Polycom located in close proximity.
360
360
AUSTIN
CEDAR PARK ROUND ROCK
UNIVERSITY OF TEXAS
KRAMER/THE DOMAIN
CAPITAL METRO’SRAIL LINE
LAKELINE STATION
LEANDER STATION
LAKE TRAVIS
HOWARD
CRESTVIEW
HIGHLAND
MLK, JR.
PLAZA SALTILLODOWNTOWN
LAKELINE MALL
THE ARBORETUM
Parkline
76
THRIVING AUSTIN ECONOMYAustin remains one of the most vibrant cities in America due to its low cost of doing business, highly educated workforce and high quality of life that appeals to corporations nationwide. Austin is one of the nation’s fastest growing metropolitan areas: led by record-setting population growth (19.8% from 2010-2016) and employment growth (146,200 jobs added 2013-2017).
ULI recently ranked Austin as the “#1 City for Real Estate Investment,” additionally, Forbes awarded Austin both the “Fastest Growing City in the Country” and among the “Top Five Best Cities for New Jobs” for the fourth year in a row, with an impressive 157 people moving to the city per day.
159NEW RESIDENTS DAILY
#1 BEST PLACE TO LIVE IN THE U.S.2 YEARS IN A ROW!2017 & 2018 BY U.S. NEWS AND WORLD REPORT
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DEAL TEAM
WALTER SAADManaging DirectorT: [email protected]
CATHY NABOURSManaging DirectorT: [email protected]
DREW FULLERDirectorT: [email protected]
DOM ESPINOSAAnalystT: [email protected]
SCHAFER SMARTTAnalystT: [email protected]
Debt ContactCHRIS MCCOLPINSenior DirectorT: [email protected]
A T L A K E L I N E
