TRAILS AT - HFF

TRAILS AT

| OFFERING SUMMARY

A 69% LEASED, 69,037 SF, CLASS A RETAIL CENTER IN AUSTIN, TEXAS.

EXECUTIVE SUMMARYHolliday Fenoglio Fowler, L.P. (“HFF”) is pleased to offer the exclusive opportunity to purchase Trails at 620 (the “Property”), a 69% leased, Class A retail center representing a rare value-add prospect in Austin, Texas. Located in rapidly growing Northwest Austin, the 69,037-square-foot Property is surrounded by exclusive master planned communities, affluent demographics, and nationally recognized school districts. Situated in the foothills of the Texas Hill Country and adjacent to Lake Travis, the Property offers a scenic address along FM 620 with rapid connectivity to major thoroughfares and the executive neighborhoods of West and Northwest Austin. With 5.95 years of remaining average lease term, 12% below market rents, and 21,505 square feet of existing vacancy, Trails at 620 provides investors a superior value-add investment opportunity in the fastest growing city in the country, recently named “The Best Place to Live” by US News and World Reports for the third year running.

2 TRAILS AT 620 EXECUTIVE SUMMARY

PROPERTY SUMMARYProperty: 8300 North FM 620

Austin, TX 78726Size: 69,037 SFOccupancy: 69%Key Tenants: Napa Flats, Mattress Firm, Barre3,

Sport Clips, Freebirds World BurritoYear Built: Phase 1: 2012 | Phase 2: 2014 Acreage: 15.42 Acres

3TRAILS AT 620EXECUTIVE SUMMARY

INVESTMENT HIGHLIGHTS

VALUE-ADD RETAIL IN SCENIC HILL COUNTRY

• Currently 69% occupied, Trails at 620 provides an excellent value-add investment opportunity to lease 21,505 square feet of existing vacancy in an increasing rental rate environment that has seen 6.3% annual rent growth for the past six years.

• The Property boasts a diverse rent roll with major tenants such as Napa Flats, Mattress Firm, Green Mango, Freebirds World Burrito, PDS Texas Dental Services, and Schlotzsky’s collectively occupying 31% of the Property through February 2023.

• Trails at 620 has attracted a diverse mix of local, regional, and international internet proof tenants representing multiple industries including dining, fitness, consumer and home goods, and more, reducing industry exposure through a balanced rent roll.

• With few true value-add opportunities available in Austin over the last few years, Trails at 620 presents the rare opportunity to capitalize on Northwest Austin’s superior leasing velocity as demonstrated by over 457,000 square feet of net absorption since 2014.

Suite Tenant Leased % of Property Lease ExpirationM100 Napa Flats 5,300 8% Oct-25

A100 Mattress Firm 3,500 5% Apr-24

L800 Green Mango 3,500 5% Sep-23

D100 Freebirds World Burrito 3,241 5% Jan-24

G100 PDS Texas Dental Services 3,024 4% Feb-23

A300 Schlotzsky’s 3,000 4% May-22

MAJOR TENANTS

4 TRAILS AT 620 INVESTMENT HIGHLIGHTS

Building ABu

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PHASE ISuite Tenant SFA100 Mattress Firm 3,500A200 Angel Donuts 1,500A300 Schlotzsky's 3,000D100 Freebirds World Burrito 3,200D300 Plum Natural Nail Spa 1,751D400 Big Frog 1,500D500 Beau Kisses 1,800D600 Hildebrand Jewelers 2,000D700 West Salon by Leah 1,200G100 PDS Texas Dental Services 3,024G200 Sport Clips 1,680G300 Summermoon Coffee 1,800

PHASE IISuite Tenant SFK100 Moviehouse Management 2,490K150 Vacant 1,019K200 Vacant 3,272K300 European Wax Center 1,527K350 Vacant 1,404K400 AT&T 1,784L100 Vacant 6,540L400 Vacant 1,404L800 Green Mango 3,500M100 Napa Flats 5,300M200 Barre 3 2,008M300 Vacant 2,992

NOT INCLUDED IN SALEBuilding Tenant

B Moviehouse & EateryC Freddy's Frozen Custard & SteakburgersE Oasthouse Kitchen & BarF Flores Mexican RestaurantH Chicken ExpressI Holiday Inn Express & SuitesJ WhataburgerO Children's Learning AdventureP Austin Regional ClinicP Champion CryotherapyP ARA ImagingQ A+ Federal Credit Union

N100 9Round Kickboxing 1,284N200 Vacant 1,144N300 Vacant 1,214N400 Vacant 1,214N500 Vacant 1,214N600 Vacant 88N700 Zenergy Pilates LLC 1,461N800 Boulder Family Canyon Denistry 2,223

PHASE IISuite Tenant SF

Occupied

Available

Not Included in sale

5TRAILS AT 620INVESTMENT HIGHLIGHTS


PREMIER QUALITY ASSET

• Developed in two phases in 2012 and 2014, Trails at 620 is a 69,037 square foot retail center purpose-built for the neighborhood and the Hill Country setting.

• The Property features a classic design with storefront windows spanning the exterior, offering tenants limestone facades and excel-lent exposure to window shoppers visiting other retailers in the center.

• Situated in a spacious setting, the Property enjoys picturesque landscaping and courtyards with abundant trees and a pedestrian friendly shopping experience.

• The Property benefits from shadow anchors Moviehouse & Eatery, Flores Mexican Restaurant, and the Austin Regional Clinic, resulting in additional business opportunities for the Trails at 620 tenancy.

1

AUSTININTERNATIONAL

AIRPORT

AUSTININTERNATIONAL

AIRPORT

WESTLAKEWESTLAKEROLLINGWOODROLLINGWOOD

DRIPPING SPRINGSDRIPPING SPRINGS

SOUTH AUSTINSOUTH AUSTINEAST RIVERSIDEEAST RIVERSIDE

DOWNTOWNDOWNTOWN

WEST LAKE HILLS

WEST LAKE HILLS

TARRYTOWNTARRYTOWN

OAK HILLOAK HILL

LOST CREEKLOST CREEKSPANISH OAKSSPANISH OAKS

ROB ROYROB ROY

WESTGATEWESTGATE

CIRCLE CCIRCLE C

STEINER RANCHSTEINER RANCH

BEE CAVEBEE CAVE

LAKEWAYLAKEWAY

EAST AUSTINEAST AUSTIN

LAKELINELAKELINE

CRESTVIEWCRESTVIEW

NORTHWEST HILLS

NORTHWEST HILLS WINDSOR

HILLSWINDSOR

HILLS

JOLLYVILLEJOLLYVILLEANDERSON MILLANDERSON MILL

BRUSHY CREEKBRUSHY CREEK

ROUND ROCKROUND ROCK

WELLS BRANCHWELLS

BRANCHPFLUGERVILLEPFLUGERVILLE

BARTON CREEK

BARTON CREEK

RIVER PLACERIVER PLACE

CEDAR PARKCEDAR PARK

LAKE TRAVIS

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DYNAMIC NORTHWEST LOCATION

• Trails at 620 is located on FM 620, just north of the intersection with RM 2222, which sees traffic in excess of 35,000 vehicles per day.

• Situated one mile from RM 2222 and 4.5 miles from the US 183/183A/SH-45 intersection, the Property provides immediate access to Austin’s expansive highway network as well as surrounding upscale, executive neighborhoods including Steiner Ranch, River Place, Long Canyon, Canyon Creek, and Twin Creeks.

• With an average household income of $170,000 and 84% white-collar professionals, Trails at 620 tenants enjoy exposure to 35,000+ residents with tremendous spending power within a three-mile radius.

• The rolling hills of West/Northwest Austin and proximity to Lake Travis attract an affluent demographic with median housing values exceeding $500,000 in the surrounding area.

DEMOGRAPHICS WITHIN 3 MILE RADIUS

POPULATION GROWTH 2010-2019 - 26%

WHITE COLLAR OCCUPATION - 84%

AVERAGE HOUSEHOLD INCOME - $168,100

MEDIAN HOUSING VALUE - $486,646

BACHELOR’S DEGREE OR HIGHER - 67%


POPULATION GROWTH 2010-2019 - 26%

WHITE COLLAR OCCUPATION - 84%

AVERAGE HOUSEHOLD INCOME - $168,100

MEDIAN HOUSING VALUE - $486,646

BACHELOR’S DEGREE OR HIGHER - 67%

DOWNTOWN AUSTIN

VANDERGRIFTHIGH SCHOOL

FOUR POINTSMIDDLE SCHOOL

GRANDVIEW HILLSELEMENTARY SCHOOL

RIVER PLACECORPORATE PARK

PRESERVE AT 620

FOUR POINTS CENTRE

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SONTERRATHE VERANDAH

ABELIA FLATS

NOLINA FLATS

LONG CANYON$700K - $3M RIVER PLACE

$500K - $8M

STEINER RANCH$500K - $5M

JESTER ESTATES$400K - $2M

WEST LAKE HILLS$600K - $10M

WILSON PARK DRIVE

OFFICE

NEIGHBORHOOD

APARTMENT

SCHOOL

PROTECTED NATURAL AREA

BALCONES CANYONLANDS PRESERVE

RIVER PLACEELEMENTARY SCHOOL

THE PARKE &GRANDVIEW HILLS

$400K - $1.5M

ASHTON WOODS$300K - $500K


FAR NORTHWEST AUSTIN RETAIL MARKET OVERVIEW

• Since 2015, Austin’s Far Northwest retail market has averaged 94% occupancy, catering to retailers seeking a location a short drive from superior residential options.

• During the same time period, Far Northwest retail market rents have increased 25%, or 5.08% annually, to their current levels of $19.29 per square foot today.

• Barriers to entry in Northwest Austin include environmentally sensitive areas and nature preserves, limiting future development in the area.


RENTAL RATES VS. OCCUPANCY

$10.00

$12.00

$14.00

$16.00

$18.00

$20.00

$22.00

$24.00

80%

82%

84%

86%

88%

90%

92%

94%

96%

98%

2011 2012 2013 2014 2015 2016 2017 2018 2019 YTD

Rental Rates vs. Occupancy

Austin Rental Rates Far Northwest Rental Rates Austin Occupancy Far Northwest Occupancy


THRIVING AUSTIN ECONOMY

• AN AVERAGE OF 152 PEOPLE MOVE TO AUSTIN EACH DAY (SINCE 2010)

• RECORD LOW UNEMPLOYMENT RATE (2.9%)

• 35,200 NET NEW JOBS (3.3% GROWTH) IN PAST 12 MONTHS


500 Jobs

1,700 Jobs

250 Jobs

2,000+ Jobs

400 Jobs

1,500 Jobs

3,000 Jobs

1,000 Jobs

600 Jobs

5,000 Jobs

400+ Jobs

500 Jobs

RECENT MAJOR EXPANSION & RELOCATIONS IN AUSTIN

NO. 1 FASTEST GROWING CITY IN THE COUNTRY

-FORBES

AUSTIN IS THE “#2 CITY FOR REAL ESTATE INVESTMENT”

-ULI (2018)

“TOP FIVE BEST CITIES FORNEW JOBS”

FOR THE FOURTH YEAR IN A ROW -FORBES

OVER 35,000 NEW JOBS ADDED IN 2018 AND OVER 31,000 NEW JOBS

EXPECTED IN 2019

UNEMPLOYMENT RATE OF 2.9%, VS 4.1% IN TEXAS AND

4.0% NATIONWIDE

ACCOLADES

TIM COOK, CEO OF APPLE“Literally, many, many pieces of our company are here. The team here is a very critical part of our

company, and we’ve been very happy here.“

APPLE ANNOUNCES NEW $1 BILLION AUSTIN CAMPUS AS PART OF BIG U.S. EXPANSION

GOOGLE IS EXPANDING ITS DOWNTOWN AUSTIN FOOTPRINT TO 1 MILLION SF WITH THE ANNOUNCEMENT OF THE FORTHCOMING BLOCK 185 TOWER


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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 neither Owner nor HFF, nor their respective equity holders, officers, employees and agents makes any representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all reference 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 purchaser, and HFF, its partners, officers, employees and agents disclaim any liability that may be based upon or related to the information contained herein. Prospective purchasers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change.

DREW FULLERDirector

T: [email protected]

KELSEY ROOP SHEBAYSenior DirectorT: 512-532-1927

[email protected]

PATRICK MCCORDSenior AssociateT: 512-532-1928

[email protected]

SCHAFER SMARTTAnalyst

T: [email protected]

DEBT FINANCING

KYLE SPENCERSenior DirectorT: 512-532-1921

[email protected]

CONTACT

Documents

TRAILS AT - HFF