Gentry Mills Capital1 The 104-room, 4-story La Quinta Del Sol Lakeway is under construction on a...

PROPERTY SUMMARY GMI-LAKEWAY 109, LPLA QUINTA DEL SOL

GMC_PS_FNT_COV_CMYK.pdf 1 11/13/17 11:27 AM

The information contained herein has been obtained from sources believed to be reliable; however, Gentry Mills Capital makes no representation or warranty as to the accuracy of such information. See Sources used to gather information and prepare this document on page 61.

www.gentrymillscapital.com


TABLE OF CONTENTS

SECTION I EXECUTIVE SUMMARY • Overview 1

SECTION II PROPERTY AND MARKET INFORMATION Property

• La Quinta Del Sol - Lakeway 4

• Renderings 5

• Aerials 10

• Maps 14

• Site Plan 16

Market

• Lakeway, Texas 17

• Lake Travis 17

• Austin, Texas 20

Music 20

Film 20

Theater 21

Museums and Other Points of Interest 21

Sports 21

Healthcare 22

Space Technology 25

Education 26

Tourism 29

Transportation 29

Clean Technology 31

Creative & Digital Media Technology 32

Data Management 32

Advanced Manufacturing 34

• Economic Overview 35

Population 35

Cost of Living 36

Unemployment Rate 37

Business Climate 38

Corporate Headquarters 38

Largest Employers 39

Relocation and Expansions 42

Labor Supply and Workforce 43

Competitive Set 44


TABLE OF CONTENTS

TABLE OF CONTENTS

SECTION III PROJECT TEAM • Developer 45

• General Contractor 45

• Architect 46

• Hotel Management Company 47

SECTION IV SPONSOR • About Gentry Mills Capital 55

• Sources 61

Overview

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The 104-room, 4-story La Quinta Del Sol Lakeway is under construction on a 30,000 sq. ft. (.69 acre) site at 1943 Medical Drive, Lakeway, Texas. The 58,659 sq. ft. hotel will contain 2,085 sq ft. of meeting space which consists of The Venue, containing 1,322 sq. ft. and a meeting room containing 763 sq. ft. as well as a breakfast dining area with a seating capacity of 40 (estimated). Other amenities include an outdoor swimming pool, fitness room, market pantry, lobby workstation, guest laundry area and outdoor patio.

About La Quinta Del Sol Hotels Del Sol is La Quinta’s fresh new prototype. Its guest-inspired, owner-friendly design makes a bold and inviting statement for both present and future guests. Inspired by extensive guest-experience research, the Del Sol prototype combines iconic brand elements with elegantly clean geometric lines. It is a dramatic composition of color and texture that creates a façade that is bold and inviting. Blending light and shadow provides a new level of warmth that enhances the guest experience. La Quinta Del Sol Hotels are designed to meet the needs of both business guests as well as leisure travelers. The Great Room concept places an emphasis on space and light and serves as a multifunctional area for social gatherings or as a place of relaxation and connectivity. The Great Room has been updated with a fresh and stylish design providing comfort, convenience and productivity. The integration of the latest technology makes the room appealing to millennials, plugged-in baby boomers and all business travelers. Source: Del Sol Prototype Booklet provided by La Quinta Inn & Suites

About La Quinta Corporation La Quinta Holdings Inc. (LQ), headquartered in Irving, Texas, is a leading owner, operator and franchisor of select-service hotels primarily serving the upper-midscale and midscale segments. As of December 31, 2016, the Company's owned and franchised portfolio consists of more than 888 properties representing over 87,200 rooms located in 48 US states, Canada, Mexico and Honduras. These properties operate under the La Quinta Inn & Suites™, La Quinta Inn™ and LQ Hotel™ brands. La Quinta's team is committed to providing guests with a refreshing and engaging experience. La Quinta guests are an equal part leisure and business travelers which helps their properties stay balanced seven days a week. Their goal is to help their guests’ travel dollars to go further by providing free high-speed internet, free Bright Side Breakfast and one of the fastest-rewarding guest-loyalty programs in the industry. La Quinta Inn & Suites properties appeal to both leisure and business guests with their many amenities: • Oversized work space in rooms • Large lobbies with comfortable seating areas • 32” or larger HDTV with Plug-and Play features for guests to play their own content • Well-equipped workout facilities • Indoor or Outdoor pool options • Business centers • Pillowtop mattresses • Conference/meeting room facilities In 2014, nearly half of La Quinta locations earned TripAdvisor Certificate of Excellence, substantially outpacing the category average. Based on data provided by STR, La Quinta is the fastest-growing principal select-service hotel brand in the United States in midscale and upper-midscale segments in terms of percentage growth of number of hotels over the last 10 years ended December 31, 2013. La Quinta grew their total number of hotels from 362 in 2003 to 834 as of December 31, 2013, significantly outpacing the percentage growth of hotels franchised, owned and operated by Comfort, Holiday Inn Express and Hampton. Those are the hotel brands most often included in their STR competitive sets, which they refer to as their “main STR competitive set.” They also had a pipeline of 187 franchised hotels as of December 31, 2013, to be located in the United States, Mexico, Canada, Colombia and Honduras (79% of which represents new construction as opposed to the conversion of an existing hotel). Source: La Quinta Brochure provided by La Quinta Inns & Suites


EXECUTIVE SUMMARY

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About Benchmark Development Benchmark Development Corporation, headquartered in Allen, Texas, is a licensed general contractor who has been building nationally for chains since 1971. Over the last ten years Benchmark has been specializing in the Hospitality Industry building five hundred to a thousand rooms per year across the United States for various major brands such as Hilton, Marriott and Starwood. Benchmark is regarded by franchisors because of their strict adherence to brand standards, reliability and quality of development. They are experienced in LEED certification building. Benchmark Development has been involved in three other projects with Gentry Mills Capital: GMI – Mueller Hospitality (a Residence Inn & Suites by Marriott located in Austin, TX), GMI – Palmdale Hospitality, LP (an element by Starwood/Marriott located in Palmdale, CA) and GMI – TPS Irving, LP (a TownePlace Suites located in Irving, TX.)

Overview Continued

About Lakeway, Texas Lakeway is located on the south shore of Lake Travis in the scenic Texas Hill Country approximately 20 miles west of Austin. Lakeway is a resort community with golf courses, tennis courts, marinas, a private airport, a full-service hotel and spa, a 63.75-mile long lake, 100 acres of parkland and trails and nearly 500 acres of greenbelts. It is considered one of the finest small cities in the Austin Metro area. The City of Lakeway began as a retirement and second-home community and was incorporated in 1974. Now, families are drawn to the “lake lifestyle”, the city’s award-winning parks and recreation programs and facilities, and Lake Travis ISD’s renowned schools. Lake Travis is a unique, prestigious, growth-managed community.

About Austin, Texas Austin, Texas is the capital of the State of Texas and the seat of Travis County, with portions extending into Hays and Williamson counties. It is the 11th most populous city in the United states and the 4th most populous city in Texas. Austin is the fastest growing city in the U. S. and the second most populous state capital. As of the U. S. Census Bureau’s July 1, 2016 estimate, Austin had population of 947,890. Austin is located in Central Texas in the foothills of the Texas Hill Country and is home to numerous lakes, rivers and waterways including Lady Bird Lake, Barton Springs, McKinney Falls, the Colorado River, Lake Travis and Lake Walter E. Long. It is the cultural and economic center of the Austin-Round Rock metropolitan statistical area with an estimated population of 2,056,405 people as of July 1, 2016. Throughout the 19th century, Austin became a center for government and education with construction of the Texas State Capital and the University of Texas. By the 1980’s Austin emerged as a center for technology and business with numerous Fortune 500 companies having headquarters or regional offices in Austin including Amazon.com, Apple, Inc., Cisco, eBay, Google, IBM, Intel, Oracle Corporation, Paypal, Texas Instruments, 3M and Whole Foods Market. Dell’s worldwide headquarters is located in nearby Round Rock, a suburb of Austin. Residents of Austin are known as Austinites and include a diverse mix of government employees, college students, musicians, high-tech workers and blue-collar workers. The city’s official slogan is “The Live Music Capital of the World” due to the South by Southwest (SXSW) music festival, numerous musicians and live music venues in the city as well as the long-running PBS TV concert series Austin City Limits. The city also adopted “Silicon Hills” as a nickname in the 1990s due to a rapid influx of technology and development companies. Austin is known as a “clean-air city” for its stringent no-smoking ordinances that apply to all public places and buildings, including restaurants and bars. The FBI ranked Austin as the second-safest major city in the U. S. for the year 2012 and U. S. News & World Report named Austin the best place to live in the U. S. in 2017. Part of what makes Austin “the best place to live in the U. S.” is its robust economy with a low unemployment rate, low cost of living and its Gross Domestic Product ranking. Sources: Austin Chamber of Commerce; Austin, Texas – Wikipedia; 2017 Greater Austin Economic Development Guide

EXECUTIVE SUMMARY


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Overview Continued About The Property Management Company – Imbue Investments

EXECUTIVE SUMMARY


Imbue Investments, a family owned and operated business, was formed in 1995 by Maganbhai Bhakta and his son Sitarambhai “Sammy” Bhakta. Sammy Bhakta is now the CEO with over 30 years experience within the hospitality-hotel industry. Sammy’s son, Sajan Bhakta, joined the company after graduating from college and diligently works to continue the traditions and values instilled by his father and grandfather before him. The overall goal of Imbue is to grow within the midscale brand and to develop long-term relationships with the top franchisees in the industry. Their company is not only a platform for their success and growth within the business, but also for their individual growth as well. They believe that one of the most important parts of the hotel industry is to deliver the best customer service possible. Implementing a family oriented environment within each property shapes their beliefs at Imbue Investments, which also dictates every decision that is made. This has proven to be a significant indicator of a successful “customer first” business. They aim to build a long term relationship with their guests by providing a fair rate and exceeding their expectations of good customer service. In today’s market, they understand that each of their guests have many lodging choices, and if the first impression of a hotel isn’t positive, then it can certainly be a last impression. At Imbue Investments, the local communities play a major role in their business plan. Each of their properties are required to have a manager join and attend their local chamber. They work closely with the schools, fire departments, police departments and community improvement district offices. Each of their properties have different ways of giving back, and this is also a key factor within their family environment. Imbue currently manages approximately 20 properties.

Lakeway, TX on Lake Travis Lakeway, TX on Lake Travis

Landscape, Lakeway, TX

La Quinta Del Sol Hotel – Lakeway, Texas The 104-room, 4-story La Quinta Del Sol Hotel – Lakeway will be located at 1943 Medical Drive, Lakeway, Texas on approximately .69 acres (30,000 sq. ft.). The Hotel is a ground lease as part of a 90-acre mixed-use project known as the Oaks at Lakeway, a Planned Unit Development. The lease term is 99-years from its effective date of May 25, 2016. Under the lease, construction of the Hotel must be completed no later than December 31, 2018. However, the estimated opening date is November 1, 2018. The La Quinta Del Sol Hotel is a limited-service lodging facility containing approximately 58,659 sq. ft. including 2,085 sq. ft. of meeting space and a breakfast dining area. Additional amenities are: outdoor pool, fitness room, lobby workstation, market pantry, guest laundry room and an outdoor patio. Parking spaces are shared with the Oaks at Lakeway Development. Tenants* within the Oaks at Lakeway Planned Unit Development are: H.E.B., Subway, Torchy’s Tacos, Mad Greens, Orange Leaf Yogurt, Pro Nails, Twin Liquors, AT&T, Factory Mattress, Trattoria Toscano, Engel & Voelkers, McArthur’s, Raising Cane’s Chicken, and High Five.

PROPERTY AND MARKET INFORMATION

La Quinta Holdings, LLC

La Quinta Holdings, Inc. first sold shares to the public in April 2004 and is listed on the New York Stock Exchange under the symbol LQ. La Quinta Holdings, Inc. was first headquartered in San Antonio; however, relocated to the Las Colinas area of Irving, Texas to be close to the Dallas-Ft. Worth International Airport. On November 9, 2005 La Quinta announced it had agreed to be acquired by the private-equity firm Blackstone Group for $3.4 billion in cash and debt. The merger closed on January 25, 2006.


HEB – Anchor Tenant at the Oaks at Lakeway Factory Mattress at the Oaks at Lakeway Mod Greens at the Oaks at Lakeway

Subway at the Oaks at Lakeway Torchy’s Tacos at the Oaks at Lakeway Raising Cane at the Oaks at Lakeway

The Oaks at Lakeway High 5 at the Oaks at Lakeway Inside High 5 at the Oaks at Lakeway

*Tenants Within the Oaks at Lakeway Planned Unit Development

Property Information

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Property Information Continued



La Quinta Del Sol Hotel – Renderings of La Quinta Del Sol Hotels – Not indicative of the Appearance of the La Quinta Del Sol - Lakeway

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Renderings Renderings of La Quinta Del Sol Hotels – Not indicative of the Appearance of the La Quinta Del Sol - Lakeway



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Renderings

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Renderings

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Renderings


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Aerials

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Aerials

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Aerials

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La Quinta Del Sol Hotel Pad Site in the Oaks at Lakway Planned Development

Aerials

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Maps – Greater Austin Communities

Source: 2017 Greater Austin Economic Development Guide


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Maps – La Quinta Del Sol Hotel at the Oaks at Lakeway



Lake Travis

Lakeway

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Site Plan – Oaks at Lakeway

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Market Information

Lakeway, Texas Lakeway, Texas is located in the western corner of Travis County, situated on the south shore of Lake Travis in the scenic Hill Country. Lakeway was founded on the site of a 2,700 acre ranch owned by Houston oilman and rancher Jack (Jake) Josey. In early 1962, three Houston businessmen associated with the Gulfmont Hotel Company - G. Flint Sawtelle, John H. Crokker, Jr., and Lee Blocker – obtained a sixty-day option to purchase the land and plan a hotel and resort community. The name Lakeway was a natural sequel to Gulfmont’s Fairway Motor Hotel in McAllen, Texas, so named because it overlooked the fairway of a golf course. Construction of the hotel began in October 1962 and the grand opening was July 12, 1963. Around the same time, the Lakeway Land Company was formed with Flint Sawtelle as President, for the development of real estate. In July 1974, a substantial majority of resident and nonresident property owners voted to incorporate with the consent of the city of Austin, and the 1,200 – acre village (of which 100 acres is parkland and trails and nearly 500 acres is greenbelt) of Lakeway resulted. As of the 2010 U. S. Census, there was a population of 11,391 with 5,249 housing units with 2.44 persons per household. The median value of owner-occupied housing units was $362,800. The median household income was $96,711 and median age was 46.3. In 2015, the estimated median household income was $120,735 and the median house or condo value was $444,692. Median gross rent in 2015 was $1,831. For people 25 years and over in Lakeway, 98.9% graduated from high school or higher, 63.9% had a bachelor’s degree, 22.1% had a graduate or professional degree. The unemployment rate in September 2015 was 3.2% (4.4% in Texas) and the mean travel time to work (commute) was 29.2 minutes. Most common occupations in 2015 were 26% management, 15% sales and related occupations, 13% business and financial operations, 8% architecture and engineering, 5% construction, and 4% health diagnosing and treating practitioners and other technical occupations.

Lake Travis Lake Travis has the largest storage capacity of the seven reservoirs known as the Highland Lakes, and stretches 65 miles upriver from western Travis County in a highly serpentine course into southern Burnet County to Max Starcke Dam, southwest of the town of Marble Falls. The Pedernales River, a major tributary of the Colorado River, flows into the lake from the southwest in western Travis County. The lake is used for flood control, water supply, electrical power generation and recreation. Lake Travis is 63.75 miles long, has over 271 miles of shoreline and its maximum width is 4.5 miles. The lake covers 18,929 acres and is known as the “Crown Jewel” of the Central Texas Highland Lakes. Lake Travis is one of the most visited recreational vacation destinations in the state of Texas. Lake Travis’ limestone bottom results in it’s unique crystal clear blue waters, making it a freshwater haven for water enthusiasts. There are four designated “regions” of the lake used to describe access and amenities: • North Shore – This is the less commercial side of the lake. The community of Lago Vista is located here. The benefit

certainly includes a more natural and less urban feel. North Lake Travis remains a beautiful secluded getaway with fantastic amentias. The north shore has some beautiful marinas and some of the most amazing vacation rentals on the lake.

• South Shore – This is the most commercial side of the lake due to it’s proximity to Austin proper. South lake includes the community of Lakeway and Bee Cave and the largest selection of amenities on the lake.

• Spicewood – The west side of Lake Travis includes the communities of Briarcliff and Spicewood. Another rapidly growing part of the lake, the west side, has easy access, and fantastic amenities, but still retains that old-school Lake Travis feel.

• Volente – The east side of the lake includes the communities of Volente and Jonestown. Easy access from I-35 via 620 and nestled up against the North Austin suburbs of Leander and Cedar Park. East Lake Travis is home to many marinas, boat rentals and lake fund amentias.



Source: 2017 Greater Austin Economic Development Guide; Wikipedia, City of Lakeway, Lake Travis Chamber of Commerce

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Market Information Continued



Lake Travis Continued If you are coming to visit Lake Travis, there are numerous options: • Parks – If you’re day tripping, a visit to one of Lake Travis’ many lakeside parks may be perfect for you. Lake Travis parks

allow for a variety of activities such as picnicking, grilling, swimming, hiking, boat ramp access and more.

• Boat Rentals – There are an abundance of watercraft rental options on Lake Travis. Houseboats, party barges, ski/wakeboard/wakesurf boats, pontoon boats, jet skis and wave runners, sailboats, kayaks and stand-up paddle boards and flyboarding.

• Marinas – There are 20+ marinas on Lake Travis. These facilities include boat access, covered and uncovered on-water slips, drystack, yacht clubs, ships stores and fuel docks.

• Boat Sales and Service – If your looking to become a watercraft owner, Lake Travis is home to some of the nations top Boat Dealers. If your watercraft needs service or towing, local Lake Travis businesses have you covered there as well.

Riviera Marina – Lake Travis

Party Boat Rentals House Boat Rentals

Wendy Point Park

South Shore Marina – Lake Travis

Mansfield Dam Park

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Not all the fun on Lake Travis is on the water. Shopping, restaurants, vineyards, craft breweries, live-music, golf and waterparks line the lake in abundance. Check out https://laketravis.com/category/entertainment/ for great ideas in lake entertainment. Lake Travis also has award-winning tour operators .

Beachside Billy’s Restaurant & Water Park Beachside Billy’s Restaurant & Water Park

The Oasis on Lake Travis The Oasis on Lake Travis

Lake Travis

Lake Travis Continued

https://laketravis.com/category/entertainment/





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Austin, Texas Austin, Texas is the capital of the state of Texas and the seat of Travis County with portions extending into Hays and Williamson counties. It is the 11th most populous city in the U.S. and the 4th most populous city in Texas. It is the fastest growing large city in the U. S. and the 2nd most populous state capital in the U. S. after Phoenix, AZ. As of July 1, 2016, the U. S. Census Bureau estimated Austin had a population of approximately 947,890 residents. Located in Central Texas in the foothills of the Texas Hill Country, the city is home to numerous lakes, rivers and waterways including Lady Bird Lake, Barton Springs, McKinney Falls, the Colorado River, Lake Travis and Lake Walter E. Long. It is the cultural and economic center of the Austin-Round Rock metropolitan statistical area which had an estimated population of 2,056,495 residents as of July 1, 2016. In the 1830s, pioneers began to settle the area in central Austin along the Colorado River. In 1839, the site was officially chosen to replace Houston as the new capital of the Republic of Texas and was incorporated under the name Waterloo. Shortly thereafter, the name was changed to Austin in honor of Stephen F. Austin, the “Father of Texas” and the republic’s first Secretary of State. By the 1980s, Texas emerged as a center for technology and business. A number of Fortune 500 companies have headquarters or regional offices in Austin, including Amazon.com, Apple, Inc., Cisco, eBay, Google, IBM, Intel, Oracle Corporation, Paypal, Texas Instruments, 3M and Whole Foods Market. Dell’s worldwide headquarters is located in nearby Round Rock, a suburb of Austin. Austin is located approximately 150 miles northwest of Houston, 160 miles south of Dallas, and 75miles north of San Antonio. In 2010, the city occupied a total area of 271.8 sq. miles with approximately 6.9 sq. miles being water. Austin is situated on the Colorado River with three man-made lakes within the city limits: Lady Bird Lake, Lake Austin, and Lake Walter E. Long. Mansfield Dam and the foot of Lake Travis are also located within the city’s limits. Austin is located at the intersection of four major ecological regions, and is consequently a temperate-to-hot green oasis with a highly variable climate having some characteristics of the desert, the tropic and a wetter climate. In 2005 there were approximately 5,000 people living in downtown Austin. By 2015, there were 12,000. The central business district of Austin is home to the tallest condo towers in the state with the under-construction Independent (58 stories and 690 feet tall) and the Austonian topping out at 56 stories and 685 feet tall. The Independent will supplant the Austonian as the tallest all-residential building in the U. S. west of the Mississippi River when complete in 2018. The skyline has drastically changed in recent years and the residential real estate has remained relatively strong. As of December 2016, there are 31 high-rise projects either under construction, approved, or planned to be completed in Austin’s downtown core between 2017 and 2020. Sixteen of those are set to rise above 400 feet tall, including four above 600 ft. and eight above 500 ft. An additional 15 towers are slated to stand between 300 ft. and 399 ft. tall. Music: Downtown growth has been aided by the presence of a popular live music and nightlife scene, museums, restaurants and Lady Bird Lake, considered one of the city’s best recreational spots. The Second Street District consists of several new residential projects, restaurants, upscale boutiques and other entertainment venues as well as Austin’s City Hall. Across the street from Austin City Hall is the new ACL Live @ the Moody Theatre where the long-running PBS program Austin City Limits is filmed. The South by Southwest, founded in 1987, is a music, film and interactive festival which occurs over five days each March in downtown Austin and includes one of the world’s largest music festivals; with more than 3,000 acts playing in more than 100 venues. The impact of SXSW in 2016 on the city of Austin totaled $325.3 million and continues to be the single most profitable event for the city of Austin’s hospitality industry. Other music festivals include: the Austin City Limits Music Festival, the Urban Music Festival, Fun Fun Fun Fest, Chaos In Tejas and Old Settler’s Music Festival. Austin Lyric Opera performs multiple operas each year (including the 2007 opening of Phillip Glass’s, Waiting for the Barbarians, written by University of Texas at Austin alumnus, J. M. Coetzee). The Austin Symphony Orchestra performs a range of classical, pop and family performances and is led by Music Director and Conductor Peter Bay. Film: Austin hosts several film festivals including the SXSW Film Festival and Austin Film Festival which hosts international films. In 2004, the city was first in MovieMaker Magazine’s annual top ten cities to live and make movies.




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Austin has been the location for a number of motion pictures partly due to the influence of the University of Texas at Austin Department of Radio-Television-Film. A few of the movies that have been filmed in Texas are: Hope Floats, The Alamo, Miss Congeniality, True Grit and more. Theater: Austin has a strong theater culture, with dozens of itinerant and resident companies producing a variety of work. The city also has live performance theater venues such as the Zachary Scott Theatre Center, Vortex Repertory Company, Salvage Vanguard Theater, Rude Mechanicals’ the Off Center, Austin Playhouse, Scottish Rite Children’s Theater, Hyde Park Theatre, the Blue Theater, The Hideout Theatre and Esther’s Follies. Public art and performances in the parks and on bridges are popular. Austin hosts the Fuse Box Festival each April featuring international, leading-edge theater artists. The Paramount Theatre, opened in Downtown Austin in 1915, contributes to Austin’s theater and film culture, showing classic films throughout the summer and hosing regional premieres for films. The Ziker Park Summer Musical is a long-running outdoor musical. The Long Center for Performing Arts is a 2,300-seat theater built partly with materials reused from the old Lester E. Palmer Auditorium. Ballet Austin is the fourth largest ballet academy in the country. Each year Ballet Austin’s 20-member professional company performs ballets from a wide variety of choreographers, including their international award-winning artistic director, Stephens Mills. The city is also home to the Ballet East Dance Company, a modern dance ensemble, and the Tapestry Dance Company which performs a variety of dance genres. The Austin improvisational theatre scene has several theaters: ColdTowne Theater, The Hideout Theater, The Ne Movement Theater, and The Institution Theater. Austin also hosts the Out of Bounds Improv Festival which draws comedic artists in all disciplines to Austin. Museums and Other Points of Interest: Museums in Austin include the Texas Memorial Museum, the George Washington Carver Museum and Cultural Center, Thinkery, the Blanton Museum of Art, the Bob Bullock Texas State History Museum, The Contemporary Austin, the Elisabet Ney Museum and the galleries at the Harry Ransom Center. The Texas State Capitol itself is also a major tourist attraction. The Enchanted Forest, a multi-acre outdoor music, art and performance art space in South Austin hosts events such as fire-dancing and circus-like-acts. Austin is also home to the Lyndon Baines Johnson Library And Museum, which houses documents and artifacts related to the Johnson administration, including LBJ’s limousine and a recreation of the Oval Office. Sports: The Austin area has several minor-league professional sports teams: Round Rock Express (Baseball), Austin Spurs (Basketball), Texas Stars (Ice Hockey), Austin Outlaws(Women’s Football), and Austin Huns (Rugby). Many Austinites support the University of Texas at Austin football program, the Texas Longhorns. In June 2010, it was announced that the Austin area would host the Formula One United States Grand Prix from 2012 until 2021. The State pledged $25 million in public funds annually for 10 years to pay the sanctioning fees for the race. The Formula One Circuit was built just east of the Austin Bergstrom International Airport. The race is a world-class destination for premium sports and entertainment. It is the first racing facility in the United States purposely built for Formula 1 racing and is designed to host a variety of sports and entertainment events. It is a 1,500 acre campus with a signature 3.4-mile, 20-turn racetrack with remarkable elevation changes and a number of challenging turns. The Austin 360 Amphitheater has a capacity of 14,000 guests. It has a 25-story Observation Tower that offers a 360-degree view of the venue, downtown Austin and the Texas Hill Country. The main grandstand features permanent seating for 9,000, a variety of suites, a hospitality area, and Velocity Lounge. There is parking for 25,000 vehicles as well as a permanent helistop. Formula 1 Teams are cutting-edge researchers and engineers in the automotive industry and beyond. The technology within the cars has contributed to other industries such as oil and gas, biopharma, information technology and renewable energy. However, the automotive industry being an area of expertise, Formula I racing has provided breakthrough technology that can be transferred directly and easily to passenger cars that are being developed in today’s market. From improving fuel efficiency to safety regulations, Formula I racing is not only a spectator sport but an innovative learning tool as well.

Austin, Texas Continued


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Healthcare

Lakeway: The Lakeway Medical Village is a prominent, community changing medical campus in Lakeway, Texas. The development provides a state of the art hospital (Baylor Scott & White) with unmatched quality, medical office buildings, retail, senior housing and a planned hotel. Lakeway Medical Village is a true destination for healthcare services and private practices alike. The project is located on RR 620 with easy access to RR 2222, Bee Caves Road, and the Hill Country Galleria. A highly finished hospital, attractive proposed finishes of the medical office buildings, and notable retailers on site makes this an opportunity for medical tenants. This development is approximately one mile from the La Quinta Del Sol Hotel.

Lakeway Medical Village

Austin: Austin’s expanding healthcare system rivals that of any major metropolitan area. Forty area hospitals, including one under construction, and a dedicated children’s hospital, Dell Children’s Medical Center of Central Texas, complement community clinical services of 4,260 direct patient care physicians. Even though Austin is one of the fastest growing metropolitan areas in the country, our physician-to-population ratio tops those of Dallas, Fort Worth, Houston, and San Antonio. Recent area medical center expansions bring the total number of licensed hospital beds to more than 5,300. Choice of care providers is diverse. The Seton Healthcare Family, St. David’s HealthCare, and Baylor Scott & White operate 22 of the region’s 44 hospitals, with the remainder run by 19 different non-profit and for-profit systems.

LAKEWAY MEDICAL VILLAGE

Sources: Lakeway _Medical_Flyer_Lease provided by ECR – Equitable Commercial Realty


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Source: Excel Group via CBRE, Inc.


Healthcare Continued

Life Sciences

Advanced Technologies Today for a Healthier Tomorrow Austin’s growing cluster of innovative life sciences companies embraces the area’s technology infrastructure. The result? A region of both established and emerging companies that are changing the face of healthcare. Austin is home to best-in-class research facilities and boasts one of the most educated populations in the U.S. The dynamic, creative, and entrepreneurial environment is fueled by the availability of funding, research collaboration, clinical trials, and skilled talent. The Dell Medical School at The University of Texas at Austin, welcomed its first class in 2016, will transform the local economy as dramatically as the semiconductor and dot-com industries did in previous decades. Through a mix of strategic relocations and continued support for our existing industry, Austin’s life sciences cluster has evolved into a well-rounded representation of the industry as a whole. Over 230 life sciences companies in the region, and a workforce of nearly 13,500 is focused on the highest growth segments and research areas in the industry, including the specialties of biologics, medical de-vices, diagnostics, pharmaceutical, contract research, and others. We’re in good company: more than 3,700 companies with 93,800 workers make the State of Texas one of the leading biotech states in the country. Research and Development Collaboration between Greater Austin’s research facilities and educational institutions provides bench-to-bedside research and training, leading to solutions for today’s health issues. There are more than 20 colleges and universities providing life sciences-related and healthcare education in the Austin region. The University of Texas at Austin, a Tier 1 research university, is the driver for innovation with over $600 million in annual re-search funding. Over 50 research units are related to the life sciences. The College of Pharmacy is ranked as one of the top four pharmacy programs in the U.S. UT-Austin’s world-class programs include bioengineering, nanotechnology, bioinformatics, and pharmaceutical research. The Dell Medical School at The University of Texas at Austin, welcoming its first class in 2016, will improve health in Travis County and throughout the country by training new physicians, providing treatment in a new teaching hospital, and conducting research to expand knowledge of medicine and medical technology. As part of a visionary partnership with Seton Healthcare Family, part of Ascension Health, the largest not-for-profit health system in the U.S., and Central Health, a public healthcare district, a new $295 million teaching hospital is being constructed adjacent to the new Dell Medical School. By designing these facilities concurrently within an integrated complex, the effort represents an unprecedented opportunity to create the best possible environment to respond to community needs and provide patient care. The Texas A&M Health Science Center College of Medicine is a community-based medical school providing third- and fourth-year clinical training at regional clinical campuses around the state through affiliations with local physicians, clinics, and hospitals. At the Round Rock clinical campus, clerkship directors direct the students’ rotations in family medicine, internal medicine, obstetrics/gynecology, pediatrics, psychiatry, and surgery at sites across Williamson County. Additional community physicians serve as clerkship faculty in these and other clinical areas. The Texas Life-Sciences Collaboration Center (TLCC), a non-profit 501(c)(3) organization, was founded in Georgetown in 2007 to help take companies that have commercially viable biotechnology and life sciences products to the next level. Southwestern University is one of the founding members of the TLCC, along with the City of Georgetown and the Georgetown Chamber of Commerce. Pharmaceutical & Biotech Development Pharmaceutical and biotech companies currently comprise 29 percent of Austin’s life sciences cluster. The region’s world-class talent, Tier 1 educational institutions, and history of industry-academia collaboration make it a natural fit for innovative companies. Source: 2017 Greater Austin Economic Development Guide


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NoMa Hyatt Place Hotel

The Belgard

ATF

1250 First Street, NE

51 N Street, NE

NoMa Meander Cinema – LaceBark Alley




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NoMa Hyatt Place Hotel

The Belgard

ATF

1250 First Street, NE

51 N Street, NE

NoMa Meander Cinema – LaceBark Alley


Medical Device Industry:

With its exceptional workforce, highly rated quality of place, and welcoming business climate, it is no surprise that a wide range of medical device and diagnostics companies call the Austin region home. Medical device and diagnostics companies represent 29 percent of Austin’s life sciences cluster. Austin’s established technology-driven talent base is a magnet for medical device companies.

Healthcare Information Technology

Austin is home to a number of companies that manage the secure exchange of health information among consumers, providers, government and quality entities, and insurers. Innovation in the health information technology space is also at the center of the Dell Medical School’s mission to create affordable and efficient means for healthcare delivery throughout the community.

The Dell Medical School at The University of Texas at Austin, which enrolled its first class in 2016, will improve health in Travis County and throughout the country by training new physicians, providing treatment in a new teaching hospital, and conducting research to expand knowledge of medicine and medical technology. As part of a visionary partnership with Seton Healthcare Family and Central Health, a public healthcare district, a new $295 million teaching hospital will be constructed adjacent to the new Dell Medical School. By designing these facilities concurrently within an integrated complex, the effort represents an unprecedented opportunity to create the best possible environment to respond to community needs and provide patient care. Space Technology Austin, a well-known hub for innovation, research, start-up generation, big data, mobile solutions, electronics manufacturing, supercomputing and more, is positioned to offer fertile ground space-based enterprises to grow. Assets like The University of Texas’s top-10 ranked aerospace/aeronautical engineering programs, affiliated research centers, and advanced computing capabilities combine in Austin with a preeminent culture of entrepreneurship, commercialization expertise, and a vibrant industrial base. An engaged and collaborative tech community, an abundance of skilled talent, and a world-class quality of life make Austin the place to capitalize on new business models of the space industry. Our world is experiencing a convergence of industries like cloud computing, platform solutions, big data, the Internet, and space technology. The way we think of technology and the world around us is drastically changing and our access to new information is increasing at an exponential rate. The world is no longer a passive experience, but rather a place of technology-driven engagement and connectedness. The Space Economy sector is growing and fueling these new opportunities and access. As we move into the future, our mission will be to make sense of the incredible amount of information and data available, while opening up new business opportunity. While Texas has established itself as a major player in the space industry, Austin’s place at the forefront of technology and innovation makes the region the ideal destination for new space companies. Austin’s creativity and innovation changes the way we think about technology and pushes our world forward. Over 12,500 employees are aligned within the aerospace, aviation, and supporting industry sectors with even more—nearly 129,000—in the overall tech ecosystem. Austin’s Space Technology Industry Targets are: • Satellites & Small Satellites • Small Launch Providers • Spacecraft Components • Internet & Software • Human Space Flight • In Space Services • Space Resources Source: 2017 Greater Austin Economic Development Guide


26


Education In the Austin metro area, you’ll find a combined enrollment of 179,000 students in four-year and community colleges. This provides an ample supply of well-educated workers to area employers. Within 200 miles of Austin, an additional 86 four-year colleges and universities enroll nearly 458,000, providing one of the world’s strongest talent pools. Life and physical scientists number nearly 5,000 in the metropolitan area’s workforce—approximately 47 percent of those are in life sciences fields. Closest colleges/universities with over 2,000 students nearest to Lakeway are: • Concordia University – about 10 miles – Austin, TX; Full-time enrollment: 2,192 • The University of Texas at Austin – about 16 miles; Austin, TX; FT enrollment 45,500+ • Saint Edwards University – about 17 miles; Austin, TX; FT enrollment: 4,308 • Austin Community College District – about 18 miles; Austin, TX; FT enrollment: 25,957 The Dell Medical School is the graduate medical school of the University of Texas at Austin in Austin, Texas. The school opened to the inaugural class of 50 students in the summer of 2016 as the newest of 18 colleges and schools on the UT Austin campus. In accordance with the Medical District Master Plan released in 2013, the University’s portion of the medical district is being constructed in three phases. The new medical campus will sit on existing University property at the southeastern corner of the central campus, adjacent to the existing UT School of Nursing and to the Dell Seton Medical Center at The University of Texas – the new $295 million, 211-bed teaching hospital that Seton Healthcare is building. Over $2 Billion annual related economic impact is anticipated with estimates of over 15,000 new, permanent jobs for Central Texas. Education Attainment Educational Attainment of Persons 25 Years or Older 2016 Austin MSA Texas United States High School Graduate or Higher 89.5% 82.9% 87.5% At Least Some College 70.6% 57.7% 60.3% Bachelor’s Degree or Higher 42.8% 28.9% 31.3% Graduate Degree 15.0% 10..0% 11.9%



University of Texas at Austin

Source: 2017 Greater Austin Economic Development Guide, Wikipedia


27




ENROLLMENT FALL 2015

GRADS, YR. ENDING JUNE 2015 BACHELOR MASTER DOCTOR

Art Institute of Austin, TX 1,044 218 Concordia University Austin, TX 2,559 290 499 DeVry University Austin, TX 175 42 28 Huston-Tillotson University Austin, TX 1,023 140 National American University Austin & Georgetown, TX

804

11

122

St. Edward’s University Austin, TX 4,620 845 299 South University Austin, TX 336 21 8 Southwestern University Georgetown, TX 1,515 299 Texas A&M Central Texas Hutto & Killeen, TX 2,466 509 175 Texas Lutheran University Seguin, TX 1,373 296 14 Texas State University San Marcos, TX 37,979 6,205 1,331 84 Univ. of Mary Hardin-Baylor Belton, TX 3,898 552 182 18 University of Texas at Austin TX 50,950 9,503 3,188 1,379 Western Governors University Texas Austin, TX 773 29 54 Total 109,515 18,960 5,900 1,481

ENROLLMENT

FALL 2015

GRADS, YR. ENDING JUNE 2015

< 1 Yr 1 to < 2 Yrs Associate

Art Institute of Austin Austin, TX 1,044 40 Austin Community College Throughout metro 41,574 207 528 2,154 Central Texas College Killeen, TX 19,562 325 483 3,186 College of Health Care Professions Austin, TX 301 15 134 CyberTex Inst. of Technology Austin, TX 139 39 Everest Institute Austin, TX 371 573 Huston-Tillotson University Austin, TX 1,023 17 Media Tech Institute Austin, TX 69 53 National American University Austin & Georgetown, TX

804

33 Recording Conservatory of Austin Austin, TX 30 10 South University Austin, TX 336 21 Southern Careers Institute Austin, TX 386 63 119 Temple College Hutto, Temple & Taylor, TX 5,716 183 14 500 Virginia College Austin, TX 552 92 96 Total 71,907 832 2,006 6,047

COMMUNITY COLLEGES & TECHNICAL SCHOOLS WITHIN 60 MILES

COLLEGES & UNIVERSITIES IN THE GREATER AUSTIN AREA – 4-YEAR COLLEGES & UNIVERSITIES WITHIN 60 MILES

In addition to the local institutions shown in this table, Texas State Technical College in Waco offers certificate programs at the East Williamson County Higher Education Centers in Taylor and Hutto. Strayer University, the University of Phoenix, and Vista College also have campuses in the Austin area. However, these schools do not report campus-level enrollment and completions to the NCES. Source: U.S. National Center for Education Statistics.

Education Continued Source: 2017 Greater Austin Economic Development Guide Austin, Texas Continued

28




Education Continued



29




Tourism

Austin consistently ranks as one of America’s best cities to visit according to national publications such as US News and World Report, Money Magazine, Kiplinger and Forbes. For RTO’s, International Tour Operators, and other travel professionals, Austin is a great city to sell. More than 25.6 million domestic visitors come to Austin annually having an annual economic impact of $7 billion from visitor spending. Source: ACVB, 2017 . Known as the Live Music Capital of the World, Austin offers world-renowned festivals such as SXSW and the Austin City Limits Music Festival – along with more than 250 venues featuring rock, blues, jazz, hip hop and other genres nightly. However, Austin’s universal appeal extends well beyond music – with outstanding dining experiences, world-class sporting events, an oasis of outdoor activities and other unique happenings to satisfy any itinerary. Austin is home to Circuit of The Americas (COTA), the location of the Formula 1 United States Grand Prix race. Other prominent races include Moto GP, the world’s premier motorcycle championship race along with the track’s signature Lone Star Le Mans endurance race. Source: austintexas.org

Transportation

Austin-Bergstrom International Airport (ABIA) is centrally located within the metropolitan area, less than 8 miles from downtown. Carriers at ABIA are: Aeromexico, Air Canada, Alaska Airlines, Allegiant, American, Branson Air, British Airways, Condor, Delta, Frontier, JetBlue, Southwest, Texas Sky, United, Virgin America, and Volaris served nearly 12 million passengers in 2015. These airlines offer nonstop service to 58 destinations and connections to numerous other destinations. Air cargo shipments pass through a state-of-the-art cargo facility. Cargo shipped from ABIA in 2015 totaled 157.5 million pounds (and in past years, the facility has handled as much as 357.3 million pounds).

Whether you are flying for business or pleasure, ABIA, awarded the Air Service Quality Award in 2015, delivers the complete Austin experience, all within its concourse. Sample some of Austin’s favorite local eateries like Salt Lick BBQ or Maudie’s Tex-Mex while enjoying live music from famous and promising musicians, courtesy of the airport’s Music in the Air program. Travelers can stay wired by accessing the free Wi-Fi service available throughout the airport.

Business travelers on the run can enjoy a quick check-in through self-serve kiosks, curbside check-in, or on-airport parking with convenient walk-up or shuttle options. If ground transportation is what you need, Austin-Bergstrom offers a variety of transportation modes with taxis and buses, car rentals, limousine services, or the Airport Flyer express bus, all available outside baggage claim.

In addition to Austin-Bergstrom International Airport, Austin has 8 general aviation airports.

Austin Bergstrom International Airport



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Highways The Central Texas highway system provides clean and direct routes from the capital city to surrounding areas and destinations across the state and beyond. Interstate 35, U.S. Highway 183, and U.S. Highway 290 make for direct commuting through and around Austin. Thousands of motorists take advantage of the region’s new north-south and east- west corridors created by State Highways 130 and 45. Austin’s highway system is favorable for materials distribution and business travel. Distribution takes advantage of the region’s location in Central Texas at the intersection of I-35 (the NAFTA corridor) and a network of U.S. and state highways. Three of the nation’s ten largest cities—Houston, San Antonio, and Dallas—are no more than three hours away. Laredo, the major port of entry between the U.S. and Mexico, is four hours from Austin via I-35.

The Capital Metropolitan Transportation Authority provides bus service on flexible, convenient schedules at more than 3,000 bus stops and 12 park-and-ride facilities throughout Central Texas. In addition to bus service, the agency operates vanpool and carpool coordination, shuttles to special events, and special transit for the disabled through MetroAccess. Capital Metro also operates a commuter rail line, MetroRail, which runs 32 miles between Leander to the northwest and downtown Austin, with nine stations along the way. Other regional providers, like CARTS, help people make connections from most jurisdictions not part of the Capital Metro service area. Capital Metro’s service improvements for 2014 included the introduction of MetroRapid service on two of Central Texas’ busiest travel corridors. Features include real time arrival information at 77 stations along the two routes, signal priority technology, and transit priority lanes through downtown. Capital Metro’s entire fleet of buses and railcars accommodate bicycles. In 2015, GPS-enabled real-time data tracking every bus on every route went live in both the CapMetro App and an Open Data Portal. Capital Metro was one of the first transit agencies in the nation to offer a system-wide mobile ticketing solution. Capital Metro and the City of Austin have partnered to develop trails to better connect cyclists to the transit system. In addition, the City of Austin and local non-profit Austin B-cycle brought bike sharing to the Austin public in December 2013. This initiative follows a successful city pilot car share program that continues today with Car2Go and Zipcar.

Capital Metro’s real- time technology and its mobile ticketing option, which has won both state and national awards, helped Austin clinch the top ranking among 19 “Abundant Choices” cities by the Innovative Transportation Index. The 2015 report, produced by the Frontier Group, provided a comparison of 70 U.S. cities and the availably of 11 services that support “car-light” lifestyles.

Transportation Continued

Interstate System Near Austin

DYNAMIC TRANSPORTATION PLANS

Central Texas Regional Mobility Authority

Mobilityauthority.com

Project Connect Projectconnect.com

City of Austin Bicycle Program

Austintexas.gov/bicycle

Capital Metropolitan Transportation Authority Capmetro.org

Smart Trips Austin

Smarttripsaustin.org



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Clean Technology Austin is leading the clean technology revolution. Our vibrant region is home to industry-leading wind turbine manufactur-ers, system integrators, and solar companies. We also support clean energy research and development, biofuels, and energy storage with our highly educated workforce, advanced automotive technologies, battery research and development, advanced power systems and smart grid technologies, globally respected research institutions, top-tier infrastructure, and winning en-trepreneurial spirit. The Austin Clean Energy Engine Austin Energy has been ranked the top green public power utility in the nation for its GreenChoice renew-able power program for seven consecutive years by NREL. Austin Energy has collaborated with municipal entities to create the Pecan Street Research Institute, an effort to develop a smart grid and business model for utilities that seamlessly integrates distributed solar and wind power, energy storage, and electric vehicles. Austin is also the headquarters for The Electric Reliability Council of Texas (ERCOT), which operates the state’s independent electric grid and manages the deregulated market for 75 percent of Texas. ERCOT provides clean energy companies access to one of the largest independent, deregulated electric grids in the United States. Our clean energy engine includes: • An established center for clean technology headquarters, R&D, and manufacturing operations. Austin has over 200 existing

clean technology companies that employ 20,000 people. • University of Texas at Austin: The world’s preeminent energy research institution with concentrations in oil, gas, advanced

materials, advanced computing, and cleantech. • The University of Texas Clean Energy Incubator: a clean energy start-up resource provider. CleanTX: a cluster development

organization. • Pecan Street Research Institute: a partnership between the City of Austin, Austin Chamber of Commerce, Austin Energy,

Environmental Defense Fund, and the University of Texas at Austin to create a test bed for new smart grid technologies. • Pike Powers Commercialization Lab: a Pecan Street Inc. initiative with a physical building that offers specialized capabilities

for developing, testing, and validating consumer electronics and applications that incorporate metrology, building controls, solar PV, natural gas fuel cell, machine-to-machine, vehicle charging, and disaggregation technologies.

Austin’s Commitment to Cleantech and the Environment Austin has made a commitment to clean energy—and to the environment. Whether you’re working with solar or wind power, fuel cells, biomass and geothermal resources, biofuels, or sustainable energy-saving technologies, Austin is the right place, and now is the right time to plug in to the clean energy industry. As the capital of Texas, Austin offers unmatched access to the power players of the global energy industry. A community with a strong commitment to the environment, sustainability, and quality of life, Austin is making its mark as the clean energy capital of the world. The private and public sectors, local utilities, major energy users, non-profits, and educational institutions are all working together to put Austin at the center of the clean energy map. In fact, Austin has been ranked as the top cleantech innovation hub in the nation by CleanEdge, CICE, SustainLane, Forbes, TIME, Wall Street Journal, NPR, and many others. Today in Austin, we have a healthy and diverse cleantech economy, which includes wind turbine manufacturing, solar inverter technologies, advanced batteries, smart grid, biofuels, electric vehicles, green building, and a wide array of energy efficiency technologies. A recognized center of technology innovation, Austin has the infrastructure and talent to support pioneering clean energy efforts. From major manufacturing to services and start-ups, Austin is a proven location for the knowledge-based economy. Source: 2017 Greater Austin Economic Development Guide


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CREATIVE & DIGITAL MEDIA TECHNOLOGY A Culture of Creativity & Innovation The Austin region has become the premier destination for creative and digital media technology. Ranging from game, software, and mobile application development to music and film technology, education technology, advertising, social media, and digital content, the region boasts an extremely creative, innovative, and well-educated talent pool with an unsurpassed quality of life. New and emerging sectors find success throughout the region as well. For example, Amazon is adding over 500 digital product development jobs to the region, including a studio working on Lumberyard, their software for game developers. Austin is home to events like Austin City Limits and SXSW Music, Film, and Interactive. SXSW Interactive has become the perfect platform for companies to launch new products, like Twitter and Foursquare. Over 40,000 employees throughout the Austin metro are aligned in the creative and digital media technology industry. Because of this, creativity and innovation really drives the local regional economy, and whether your company is located in the Austin area or you’re considering an expansion or relocation to Central Texas, you’ll find the key ingredients to not only succeed but also thrive in a global landscape. A Creative Culture Our creative culture is fed by our diversity, focus on education, aggressive pro-business climate, and ample recreational opportunities. Students come to Austin for computer science programs, as well as for degrees in film, design, and new media at The University of Texas at Austin (UT), St. Edward’s University, and Austin Community College. UT opened the Bill & Melinda Gates Computer Science Complex and Dell Computer Science Hall in 2013. With high-tech collaborative laboratories and spaces, the complex marks the start of a new era for the university’s top-10 ranked Department of Computer Science. UT has also launched a new undergraduate game development degree to supply Austin’s creative media companies with top talent. Data Management Data Centers – An Ideal & Secure Location Austin’s strategic location and exceptional infrastructure make it an ideal location for data center operations. The region’s long history in related technology and services provides the necessary support and qualified technical workforce for data center operations. Industry giants, including AMD, IBM, Cisco, Citigroup, Dell Technologies, Hewlett-Packard, Home Depot, Intel, and Oracle, have facilities in Austin ranging from headquarters and R&D operations to manufacturing and mission-critical enterprise data centers. Austin has a long history in supporting technology and service providers. As a result, you’ll find a qualified technical workforce for data center operations. The University of Texas at Austin’s Department of Computer Science is ranked as a top 10 computer science department nationally. UT’s Electrical and Computer Engineering Department, also top 10 ranked, is the largest department in the Cockrell School of Engineering with almost 2,000 students. Environment & Climate The Austin region has an extremely low occurrence of natural disasters. Central Texas has a very low level of seismic risk and has no reported incidents of earthquakes, tsunamis, or hurricanes, and is located outside the central United States region known as Tornado Alley. Austin experiences an annual average of 43 days with thunderstorm activity per year.




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Energy The area’s energy providers work hand-in-hand with industry looking for increased efficiency and greener solutions. Texas has its own electric grid and a variety of electric providers in Central Texas offer competitive rates and excellent reliability ratings. Municipal utilities and cooperatives provide power in several area communities. The City of Austin’s municipally-owned utility, Austin Energy, has a track record of reliability and redundancy for large power users, including 24-7 chip manufacturing facilities, data centers, and call center operations. In deregulated parts of the region, customers have the ability to choose providers and negotiate rates with a variety of electric utilities. Water Sources of water in Central Texas are surface waters managed by the Lower Colorado River Authority, the Guadalupe-Blanco River Authority, and the Brazos River Authority. Ground water is also available from the Edwards and Trinity Aquifers. Regional planning groups ensure that this critical resource is efficiently managed. Real Estate Austin’s data center collocation buildings typically feature dual-feed electric, redundant telecom, and other amenities required by mission-critical facilities. For example, the state-of-the-art MetCenter features dual-feed electric service from separate substations—each capable of growing to 400-megawatts—fed from separate power sources. Space is also available in collocation facilities such as CyrusOne, Data Foundry, Digital Realty, OnRamp, Sungard, XO Communications, and Zayo Group. Telecommunications Greater Austin enjoys one of the world’s most advanced, robust, and redundant telecommunications networks. Fiber protected by SONET rings and Ethernet network architecture, including digital access control, is virtually universal in all routes to customers. With no fewer than 25 interexchange carrier POPs and LSOs, the city and surrounding regional cities are equipped to handle multiple redundancy needs. The community is also served with ultra-fast broadband by Google Fiber and AT&T’s GigaPower. Data Analytics – Talent That is Both Creative & Technically Skilled Over the past decade, the collection and storage of data has become both ubiquitous and cost-effective. Deriving business value from that data, however, requires the unique, delicate balance of technical expertise and creative thinking for which Austin is world-renowned. Not only is Central Texas home to a range of data center operations but also the region’s growing talent pool adds value to business operations through the analysis and manipulation of complex databases across a wide range of industry sectors, including healthcare, energy, and transportation. High-profile companies such as Bazaarvoice, InfoChimps, Sotera Defense Solutions, and Tableau Software already call Austin home. Recent announcements such as IBM’s Innovation Center and Dell’s Evergreen Innovation Center also suggest that this sector will continue to thrive in the region. Talent Innovation and creative thinking are celebrated in this “weird” community known for its exceptional quality of life. The University of Texas at Austin alone is home to over 20 research units devoted to computers and information science, including the Texas Advanced Computing Center (TACC), one of 11 centers across the country providing leadership-class computing resources to the national research community. TACC partners with researchers and industry experts to enable discoveries that advance science and society through the application of advanced computing technologies. Thousands of re-searchers each year use the computing resources available at TACC to forecast weather and environmental disasters such as the BP oil spill, produce whole-earth simulations of plate tectonics, and perform other important research.



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Source: The Council for Community & Economic Research, Cost of Living Index taken from the 2017 Greater Austin Economic Development Guide

ADVANCED MANUFACTURING Building & Designing Tomorrow’s Products Some of the world’s most advanced products are designed and/or made and assembled in Austin. The region supports manufacturers through a geocentral location in a business-friendly state, a low tax burden and no state income tax, and living costs below the national average. Fueled by Austin’s young, highly trained workforce and partnerships between the region’s higher education institutions and the private sector, Austin is a leader in semiconductor and electronics R&D and manufacturing. The region has also seen growth in diverse sectors including automotive technology, medical devices, nanotechnology, and aerospace manufacturing, as well as a rebounding of general manufacturing since the 2009 recession. Total manufacturing employment in the region is at about 55,000 in 2016, up by 16 percent from 2010. Over 300 high-tech manufacturing firms employ 31,000, up 13 percent since 2010. High-tech manufacturing currently represents 56 percent of the region’s manufacturing employment. Innovation is a key export for the Austin high-tech economy. • The region ranked 9th in per capita patent activity, according to a 2013 Brookings Institute report, and averages 2,500

patents per year. • According to the U.S. Patent and Trademark Office, data on patent activity for 2005–2015, Austin ranked 11th for both

total patents awarded and for per capita patent activity. • A 2014 National Science Foundation report ranks Austin in the top 10 for business R&D performed and paid for by large

R&D companies. • Additionally, The University of Texas at Austin consistently ranks among the top research universities in the country with

over $623 million in research expenditures annually. Spurred by annual population growth of 3 percent and a favorable business climate, the Austin region is ready to be considered a location for general and advanced manufacturing projects. The five-county metro area includes several communities with free port tax exemption on goods in production and transit, and also a Foreign Trade Zone framework which allows streamlined site activation. Many of the top computer and microchip firms have established major design and production centers in Austin. Austin is home to Samsung’s largest semiconductor production center outside of Korea, to which a new R&D center was recently added. Singapore-based contract electronics manufacturer Flextronics recently expanded its footprint in Central Texas for production of Apple’s new Mac Pro.



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Because of its draw as a destination for migrating talent, metro Austin’s population grew to over 2 million in 2015. The decade ending 2015 saw a 38 percent increase in population, and growth was 3.0 percent for the year ending July 2015. Census Bureau estimates show that Austin remains one of the top destinations for migrating talent. Austin ranked first among the 50 largest U.S. metro areas based on net migration as a percent of total population in 2015. In addition, 6.4 percent of Austin residents in 2015 lived elsewhere one year earlier. That is the fourth largest rate among the top 50 U.S. metro areas. Fastest Growing Among the Top 50 Metro Areas

METRO AREA

POPULATION 2015

2010 - 2015 RANK DIFFERENCE PERCENT CHANGE

Austin MSA 2,000,860 284,547 16.6% 1

Raleigh 1,273,568 143,077 12.7 2

Houston 6,656,947 736,454 12.4 3

Orlando 2,387,138 252,733 11.8 4

San Antonio 2,384,075 241,557 11.3 5

Denver 2,814,330 270,730 10.6 6

Dallas 7,102,796 676,582 10.5 7

Nashville 1,830,345 159,449 9.5 8

Charlotte 2,426,363 209,115 9.4 9

Phoenix 4,574,531 381,404 9.1 10

Population Stats: Ø Population: 2 million Ø Labor force: 1 million Ø 2nd Highest median household income among Texas metro areas Ø Younger: Median age 4 years younger than the nation Ø 67.2% of the population is under 45 (59.3% nationally) Ø More educated than the nation average – 27 colleges/universities: 180,000 students Ø 42.6% of the population over 25 has a Bachelor’s Degree (30.6% naitonally)

Demographics


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36

Cost Of Living Texas consistently ranks as one of the nation’s most favorable business climates based on its low tax burden and competitive regulatory environment. In Texas, aggregate costs for real estate, energy, wages, and taxes are below most states in the country. Compared to other major business centers, Austin is well known for offering affordable living. The National Association of Realtors reports that the median single-family home price in Austin was $284,000 in the third quarter of 2016, while the national median was $240,900. The National Association of Home Builders, which also produces median home price estimates, has a narrower difference between Austin and the nation. Its third quarter 2016 estimate for Austin is $280,000 with a national median of $247,000. NAHB estimates that 58.7 percent of homes sold in Austin are affordable to families earning Austin’s median family income—close to the 61.4 percent national affordability rate. Texas features no personal or corporate income tax, and overall the state has one of the lowest state and local tax burdens in the nation, ranking 38th among the 50 states in taxes paid per $1,000 of personal income. Cost of Living Index Year Ending 2016 Q2 (U.S. = 100)

COMPOSITE

GROCERY

ITEMS (13.24%)

HOUSING

(28.04%)

UTILITIES (10.31%)

TRANS-

PORTATION (11.16%)

HEALTH CARE

(4.36%)

MISC.

(32.89%) Austin

96.4

85.6

93.3

103.3

96.5

103.6

100.1

Round Rock

90.7

85.4

88.4

95.8

90.4

103.3

91.5

San Marcos

91.5

84.6

75.7

89.3

123.7

89.0

97.9

Boston

147.4

104.5

199.7

155.6

107.6

134.3

132.7

Chicago

117.9

115.2

140.9

101.5

117.1

101.0

107.1

Denver

109.6

101.0

130.7

93.2

99.8

108.0

103.8

Los Angeles

142.2

109.2

217.6

111.6

136.0

109.6

107.1

Nashville

95.4

96.5

84.2

93.3

97.6

85.5

105.6

New York (Manhattan)

227.6

129.0

459.4

129.0

130.5

116.0

148.4

Phoenix

96.6

95.5

96.8

96.7

100.9

98.2

95.1

Raleigh

91.4

109.0

69.5

97.3

87.5

103.6

100.8

San Francisco

224.2

142.7

473.5

108.5

129.1

131.8

125.2





Market Information Continued Economic Overview Continued

37

September 2015 September 2016 Difference Rank

Denver MSA 3.1% 2.9% -0.2 1

Boston NECTADiv 4.3 2.9 -1.4 2

San Francisco MDiv 3.2 3.2 0.0 3

Minneapolis MSA 3.1 3.3 0.2 4

Silver Spring MDiv 4.1 3.3 -0.8 5

Austin MSA 3.3 3.5 0.2 6

San Jose MSA 3.9 3.8 -0.1 7

Indianapolis MSA 3.9 3.9 0.0 8

Dallas MDiv 3.9 4.0 0.1 9

Washington MDiv 4.4 4.0 -0.4 10

Unemployment Rate

SEPT. 2016 SEPT. 2015 – SEPT. 2016

RANK

DIFFERENCE PERCENT CHANGE

Orlando MSA

1,218,100

55,200

4.7%

1

Jacksonville MSA 681,100

30,200

4.6

2

Fort Lauderdale MDiv 832,900

35,400

4.4

3

Dallas MDiv

2,523,800

101,300

4.2

4

San Jose MSA

1,087,100

38,100

3.6

5

Seattle MDiv

1,666,500

56,300

3.5

6

Denver MSA

1,455,700

46,500

3.3

7

Salt Lake City MSA

702,700

20,600

3.0

8

Austin MSA

993,000

28,600

3.0

9

Richmond MSA

674,300

19,200

2.9

10

Lowest Unemployment Rates Among The 50 Largest Metro Areas

Fastest Growing Among the 50 Largest Metro Areas NonFarm Payroll Jobs Growth


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Economic Overview Continued Business Climate Texas has been ranked as the most business friendly state in the country. Texas is one of only a handful of states with no individual income tax. And in Austin, you will find an inviting business community full of innovative technology, digital media, clean energy, and life science enterprises. It’s a dynamic business ecosystem that has provided consistent job growth for some of the world’s most successful companies.

Corporate Headquarters The greater Austin area is recognized around the country as a select location for corporate headquarters and supporting facilities. It is renowned for its quality of life and hosts a strong regional infrastructure supported by a multi-tiered workforce. These conditions combine to create one of the strongest business environments in the United States. Offering a low cost of doing business together with a lower overall cost of living compared with most of the rest of the country, the Austin region makes financial sense. Their dynamic creative culture is fed by their diversity, quality of life, and focus on education. Highly educated professionals from all over the world come to Austin to enjoy the beautiful Hill Country setting and innovative culture, making it easy to attract and retain a highly skilled workforce.

Companies headquartered in the Austin region include industry leaders in a wide spectrum of industries. Austin has a global reputation as a strong technology center and has long been home to independent thinkers and innovators. Many of their corporate citizens have experienced extraordinary productivity and success, contributing to a thriving regional economy which has outperformed the nation. Whole Foods, Dell Technologies, National Instruments, HID Global, Dimensional Fund Advisors, Hanger Inc., and NXP Semiconductors are just a few of the dynamic industry leaders with corporate headquarters in Greater Austin.

SELECTED HEADQUARTER COMPANIES

Active Power Hanger, Inc. RetailMeNot

American Achievement Corporation Health Tronics Silicon Laboratories

American Campus Communities HID Global SolarWinds

Bazaarvoice High End Systems Spiceworks

C3 Presents HomeAway Spredfast

CFAN Hoover’s Stratfor

Cirrus Logic Indeed TECO-Westinghouse Motor Co.

ClearCube Technology Keller William Realty Thermon Manufacturing

Clinical Pathology Laboratories Kendra Scott Design uShip

Compass Learning Luminex Corporation Volusion

Dell Technologies McCoy’s Building Supply Wayne Fueling Systems

Dimensional Fund Advisors Michael Angelo’s Gourmet Foods Whole Foods Market

Epicor Software National Instruments Yeti

EZCORP Netspend

Golfsmith International NXP Semiconductors

Green Mountain Energy Ottobock Healthcare

GSD&M Q2 Source: 2017 Greater Austin Economic Development Guide

39


Largest Employers



COMPANY DESCRIPTION

Apple Computer maker’s tech, chip engineering, & admin support center (Americas Hdq.) Austin Independent School District Public education City of Austin Government Dell Technologies Computer technology solutions & equipment mfg./sales (Hdq.) Federal Government Government IBM Corp. Computer systems, hardware, software, & chip R&D Samsung Austin Semiconductor Semiconductor chip mfg., R&D (Hdq.) Seton Healthcare Family Healthcare (Hdq.) St. David’s Healthcare Partnership Healthcare (Hdq.) State of Texas Government University of Texas at Austin Higher education, public

EMPLOYING 6,000 & OVER

Accenture Management consulting & software development center Amazon Online retailer's digital product dev. & distribution center Applied Materials Semiconductor production equipment mfg. & R&D AT&T Telecommunications (Hdq. of Texas ops.) Austin Community College Higher education, public Flextronics Contract electronics (computers, smartphones, etc.) mfg. & integrated supply

chain services Hays Consolidated Independent School District Public education Keller Williams Realty Residential real estate (Hdq.) Kindred Healthcare Healthcare Leander Independent School District Public education National Instruments Virtual instrumentation software & hardware mfg. (Hdq.) NXP Semiconductors Semiconductor chip design & mfg. (Hdq.) Pflugerville Independent School District Public education Round Rock Independent School District Public education Texas State University-San Marcos Higher education, public Travis County Government U.S. Internal Revenue Service Government (regional call & processing center) Whole Foods Market Grocery retailer (Hdq.)

EMPLOYING 2,000 – 5,999

LARGEST EMPLOYERS

Apple’s New Austin Campus 12545 Riata Vista Circle

Austin, Texas



Economic Overview Continued Largest Employers Continued

40



COMPANY DESCRIPTION Austin Energy Electric utility, municipal Austin Regional Clinic Healthcare (Hdq.) Baylor Scott & White Healthcare Healthcare Capital Metro Transportation Authority Public transit Charles Schwab Investment trading technology development & services Clinical Pathology Laboratories Medical laboratory services (Hdq.) General Motors IT innovation center, vehicle applications & business processes Goodwill Industries of Central Texas Community service organization Hewlett-Packard Enterprise IT solutions dev., customer support services ops. & data center HomeAway Online vacation home rentals (Hdq.) Intel Corp. Microprocessor design center Lower Colorado River Authority Electric power distribution & water supply mgt (Hdq.) Oracle Corp. Chip, hardware, & software design, data center Pfizer Pharmaceutical delivery systems dev. & mfg. Pharmaceutical Product Development Biopharm & medical device contract research services Progressive Insurance Co. Insurance (call center) Spectrum Media & communications State Farm Insurance Co. Insurance U.S. Dept. of Veterans Affairs Government (data center & admin for VA operations) Wells Fargo Bank Texas Banking Williamson County Government YMCA of Austin Community service organization

EMPOYING 1,000 – 1,999

Samsung Austin Semi-Conductor Texas State Capital Government


41




Economic Overview Continued Largest Employer Continued

COMPANY DESCRIPTION 3M Electronic equipment mfg./R&D Activision Blizzard Game software publisher's call center AECOM Engineering Alorica Call center operator for General Motors American Cancer Society National Cancer Information Center Health organization, call center & regional Hdq. BAE Systems Defense & aerospace equipment mfg. Bank of America Banking Bazaarvoice e-commerce software & product review platform (Hdq.) Centene Corp. Health plans & health benefits mgt. CFAN Aerospace equipment mfg. (Hdq.) Cirrus Logic IC design/software for audio & energy measurement applications (Hdq.) Cisco Systems Interconnect devices dev, marketing, sales & operations Cypress Semiconductor Flash memory chip mfg. eBay e-commerce business operations center & software development Electric Reliability Council of Texas Electric power grid administrator (Hdq.) Electronic Arts Game development & customer service Emerson Process Management Process control software & systems R&D (Hdq.) Facebook Social networking service's online operations center, marketing & sales Farmers Insurance Group Insurance (Reg. Hdq.) Grande Communications Telecommunications (Hdq.) Harte-Hanks Marketing & advertising services, call center outsourcing Indeed Online job search website (Hdq.) JPMorgan Chase & Co. Banking Liquidation Channel TV channel & online jewelry auction sales (Hdq.) Luminex Corp. Biological testing technologies dev. & mfg. (Hdq.) Maximus Social services program administrator Netspend Credit card processing & marketing services (Hdq.) Pearson Assessments Test design, scoring, & packaging center Q2 Electronic banking technology & services (Hdq.) Rackspace Managed Hosting Managed hosting services Sears Customer Care Retailer customer service center Silicon Laboratories Integrated circuits design (Hdq.) Software House International Software & hardware reseller call center SolarWinds Network security & mgt software (Hdq.) St. Edward's University Higher education, private TruSourceLabs Outsourced customer service call center (Hdq.) Visa Payments technology company's global IT center VMWare Storage & virtualization software Wayne Fueling Systems Gasoline dispenser & control systems mfg. (Hdq.) Xerox Business process services Yodle Online/interactive marketing technology & services

EMPLOYING 500 - 999


42


Relocations and Expansions

The Austin area was named the “Most Business-Friendly U. S. City” by Kauffman Foundation in 2013. Austin places at or near the top of the fDi Intelligence’s annual “American Cities of the Future” rankings, as well as Jones Lang LaSalle’s City Momentum Index, a list of the world’s 20 most dynamic cities. Bloomberg calls Austin “America’s No. 1 Boomtown.” These evaluations are made based on performance and on the criteria that businesses use for making location decisions – like workforce quality, capacity for innovation, low cost of doing business, and the quality of life that Central Texas affords. RECENT ANNOUNCEMENTS TO EITHER LOCATE SIGNIFICANT NEW FACILITIES OR EXPAND EXISTING OPERATIONS HAVE BEEN MADE BY:



COMPANY TYPE OF OPERATION JOBS CREATED LOCATION TYPE OF EVENT

Aceable Driver’s education mobile software (Hdq.) 46 Austin Expanded Amazon Online retailer's digital product dev. & game dev. software 500 Austin New

Apple Computer maker's tech, chip engineering, & admin support center (Americas Hdq.)

500 Austin Expanded

Baker Tilly Accounting & related services 100 Austin New Best Buy e-Commerce operations center 50 San Marcos New Blueshift Thermal & acoustic insulation product mfg. 25 San Marcos New Certain Affinity Game development studio (Hdq.) 180 Austin Expanded CipherLoc Data encryption & cyber security software (Hdq.) 40 Buda New ClearDATA Healthcare patient data cloud storage platform (Hdq.) 100 Austin New

Cognitive Scale Cognitive cloud technology & data analytics (Hdq.) 30 Austin Expanded Comprehensive Healthcare Management

Medical billing services (Hdq.) 50 Cedar Park New

Condé Nast Publisher's digital innovation center 50 Austin New Credit Risk Management Analytics

Credit & risk management software 40 Austin New

Express Scripts Pharmacy & drug benefit management software 100 Austin New Facebook Social networking service's online operations center,

marketing & sales 500 Austin New

GE Aviation Flight operational quality assurance & flight data monitoring technology 50 Austin New/Expanded

HeartFlow 3D modeling software for cardiovascular diagnosis 125 Austin New Hyperwallet Systems Financial payment platform (Hdq.) 100 Austin New Indeed Online job search website (Hdq.) 1,175 Austin Expanded Insurance Zebra (The Zebra) Online marketplace for insurance quotes (Hdq.) 50 Austin Expanded KOMPAN Playground Solutions Playground equipment mfg. (Hdq.) 40 Pflugerville New KUKA Robotics Industrial robotics R&D center 200 Austin New Lightspeed Systems IT management tools for education (Hdq.) 50 Austin New/Expanded LKQ Auto parts distribution center 100-250 Austin New Magic Leap VR computing platform hardware engineering 60 Austin New Micron Technology Chipmaker's software dev. team for storage solutions 30 Round Rock Expanded

Contact center for domestic violence issues (Hdq.) 40 Austin Expanded

Noren Products Industrial thermal management product mfg. (Hdq.) 40 Taylor New OutboundEngine Email marketing platform (Hdq.) 100 Austin Expanded

Pedernales Electric Cooperative Electric utility 150 Leander Expanded

Ride Fare Ride hailing service (Hdq.) 30 Austin New Rocket Software Network & cloud management software for business 35 Austin New

Samsung Austin Semiconductor Semiconductor chip mfg., R&D (Hdq.) 600 Austin Expanded

Shopgate Mobile commerce SaaS platform (Hdq.) 75 Austin New

Sisu Devices Electro-mechanical machines, robotics prototype & mfg (Hdq.)

75 Pflugerville Expanded

Snap Kitchen Healthy food meal retailer's distribution center (Hdq.) 200 Austin Expanded SolarCity Solar installer, commercial & residential 120 Austin New Spredfast Social media management software (Hdq.) 50 Austin Expanded


43




COMPANY TYPE OF OPERATION JOBS CREATED LOCATION TYPE OF EVENT

United Parcel Service Delivery services 314 Round Rock Expanded USAA IT service center for banking & insurance provider 100 Austin New uShip Online shipping marketplace (Hdq.) 200 Austin Expanded Vast Enterprise consumer analytics content provider (Hdq.) 50 Austin Expanded World First Foreign exchange services, esp. to online retailers (Hdq.) 40 Austin Expanded Younicos Integrated smart power mgt solutions dev & mfg (Hdq.) 50 Austin Expanded

Labor Supply & Workforce One reason the Austin region has stayed hot through more than two decades of business trends is its workforce. CEOs, entrepreneurs, educators and researchers will agree. It’s all about people and Austin’s supply of unmatched employee talent is certainly no accident. Their labor pool is about the most energetic, innovative, productive and educated in the world. The best and brightest lead many diverse business sectors. You will find many coming in every day to join them, whether it’s from outside the area or through one of the largest talent pipelines in the country – The University of Texas at Austin. In the Austin metro area, you’ll find a combined enrollment of 179,000 students in four-year and community colleges. This provides an ample supply of well-educated workers to area employers. Within 200 miles of Austin, an additional 86 four-year colleges and universities enroll nearly 458,000, providing one of the world’s strongest talent pools. Life and physical scientists number nearly 5,000 in the metropolitan area’s workforce—approximately 47 percent of those are in life sciences fields.

20%

Source: Texas Workforce Commission & U. S. Bureau of Labor Statistics, Current Employment Statistics taken from the 2017 Greater Austin Economic Development Guide

Economic Overview Continued Relocations and Expansions Continued

44


Economic Overview Continued

Competitive Set



Source: Excel Group via CBRE, Inc.

Since the La Quinta Del Sol is a construction project, we do not have a STR (Smith Travel Report) showing the competitive set of hotels in the area. We believe the competitive set will be the Hampton Inn and Suites (under construction), the Holiday Inn Express, the Springhill Suites (under construction) and the Mountain Star Hotel.

There is a possibility that the Lakeway Resort and Spa and the Sonesta will be included in the competitive set. However, the Lakeway Resort and Spa located on Lake Travis is an upper scale, full-service hotel as is the Sonesta, and we do not feel they compete with our mid-scale, limited-service hotel.ompetitive Set Hotels

Competitive Set Hotels

La Quinta Del Sol Site

Probable Competitive Set Hotels

Possible Competitive Set Hotels

1. Holiday Inn Express, 15707 Oak Grove Blvd. Lakeway, TX 2. Hampton Inn & Suites, 2013 Ranch Road 620 S, Lakeway, TX 3. Spring Hill Suites – Located in the Lakeway Medical Village, at Medical Parkway and RR

620, Lakeway, TX 4. Mountain Star Hotel, 3573 Ranch Road 620 S., Lakeway, TX 5. Lakeway Resort and Spa, 101 Lakeway Drive, Lakeway, TX 6. Sonesta Bee Cave Austin Hotel (in Galleria) 12525 Bee Cave Parkway, Bee Cave, TX

1

2

3

4

5

6

Holiday Inn Express

Hampton Inn & Suites

Typical Springhill Suites

Mountain Star Hotel

Lakeway Resort & Spa

Sonesta Bee Cave Austin


Project Team

Developer The Hotel is being developed by LodgeCap DFW G. P., LLC. Billy Brown, a Class B limited partner of the Hotel Partnership, is the owner of LodgeCap DFW G. P., LLC (the Developer) and an affiliate of the general contractor, Benchmark Development, Inc. Neither Benchmark nor the Developer is affiliated with Gentry Mills Capital, LLC. Billy Brown and Benchmark Development Corporation have been involved in two other projects with Gentry Mills Capital, GMI – Mueller Hospitality (a Residence Inn & Suites by Marriott located in Austin, Texas) and GMI – Palmdale Hospitality, LP (an element by Starwood/Marriott located in Palmdale, California).

PROJECT TEAM

General Contractor Benchmark Development Corporation, headquartered in Allen, Texas, is a licensed general contractor who has been building nationally for chains since 1971. Over the last ten years Benchmark has been specializing in the Hospitality Industry building five hundred to a thousand rooms per year across the United States for various major brands such as Hilton, Marriott and Starwood. Benchmark is highly regarded by franchisors because of their strict adherence to brand standards, reliability and quality of development. They are experienced in LEED certification building. Benchmark Development Company has acquired an excellent reputation over the years by providing quality, completed projects on schedule and within budget. Much of Benchmark’s business is based on repeat customers that are regional or national chains. Benchmark was the General Contractor on the Residence Inn By Marriott in Austin, Texas and the element by Westin Hotel in Palmdale, California which were sponsored by Gentry Mills Capital. The Residence Inn by Marriott was also a LEED Certified facility. The element by Westin is currently under construction and will be LEED Certified. Benchmark Development is owned by Billy Brown who is an affiliate of the Developer. He will oversee the development of the TownePlace Suites hotel as well as oversee the construction. BDC was awarded Starwood Developer of the year in 2009. In addition, the company developed and owns the first Silver LEED Certified hotel in the state of Texas and will soon obtain approval for the first Silver LEED Certified hotel in the state of Colorado. The long term company plan is to focus upon the upper-end, select-service and extended-stay hospitality markets. Benchmark’s primary objective is to build premium branded, limited service hotels in geographic areas within the United States that lead the nation in population growth. By creating the hotel from start to finish, BDC is able to hold the expense of development at a very efficient level, thus reducing wasteful spending and increasing profitability. Premium extended stay brands considered by BDC include products from Starwood Hotels, Marriott International, Hilton International, Hyatt Hotels and the InterContinental Group family of hotels. These corporations employ top notch management, have very high brand recognition, streamlined global reservation systems and high consumer loyalty due to their membership/frequent guest clubs. As a franchisee, MHG receives the benefit of corporate brand advertising and the distinct amenities that attract hotel guests. Target hotel site locations will have a higher barrier to entry in addition to being situated in top population growth markets (which are generally found in the South & Southwestern portions of the US). Each market will generally consist of three distinct demand generators and are ideally located in close proximity to: • Medical Complexes/Universities • Corporate Headquarters/Business or Commercial Centers • Life Style Centers including Retail, Restaurants and Entertainment Attractions

45


Project Team Continued

PROJECT TEAM

Architect The architects for TownePlace Suites will be John T. Campo and Associates. Founded in 1985, Campo Architects has been committed to design excellence. To meet the needs of their clients, they approach each project by developing innovative, cost-effective solutions and delivering the highest-quality architectural services on time and within budget. Their repeat clients cite their remarkable creativity and excellent track record of controlling schedules, budgets, and change orders as reasons for returning to their again and again. Campo Architects offer a full range of architectural, planning and interior design services for both new construction and renovation projects. With over twenty years of professional experience, John T. Campo Jr., AIA, has successfully managed a wide range of complex design and construction projects. His hands-on-approach to project management and unyielding commitment to client services is reflected in the firm’s long-standing relationships with several prominent national leaders in the Hospitality and Healthcare industries. His expertise in procuring historic tax credits is unsurpassed in the region and has resulted in millions of dollars saved for his clients. Their experienced team of professionals will lead you through the Federal Tax Credit maze from start to finish with turnkey solutions that impact the bottom line. Campo Architects offers their clients an integrated approach with their understanding of architectural implications, knowledge and expertise in construction and building code compliance, and a proven track record to deliver value. They deliver projects on time and on budget. They invest their time on the front end with field investigations of existing conditions, a thorough and complete set of construction documents, and timely responsiveness to clients’ requests. Licensed in twenty-one states, John T. Campo Jr., AIA, and his associates enjoy a growing national reputation for their ability to deliver high-quality, comprehensive professional services to both large and small clients across the country. AWARDS:

Merit Ward AC Hotel 2015

Landmarks Illinois’ Richard H. Driehaus Foundation 2014 President’s Award

Award of Excellence - 2008 American Bank Building 2000 Carondelet Award of Excellence - 2008 Bogalusa Readiness Center Award of Excellence - 2001 Royal St. Charles Hotel Award of Excellence - 1999 The lofts at Embassy Suites

Best Multi-Family Award – 2009 American Bank Building 200 Carondelet Award of Merit in Architecture – 2009 American Bank Building 200 Carondelet Award of Excellence in Architecture – 2009 St. Charles Surgical Hospital Award of Excellence in Health Care – 2009 St. Charles Surgical Hospital

Award of Excellence – 2004 Best Western Saint Christopher Hotel New Orleans Award of Excellence – 2001 Royal St. Charles Hotel Award of Excellence – 2001 Holiday Inn French Quarter Award of Excellence – 1999 Lofts at Embassy Suites

46



PROJECT TEAM

Hotel Management Company

47

Imbue Investments Company Overview Imbue Investments, LLC began in 1995 in the panhandle of Texas with only one hotel owned and operated by Maganbhai Bhakta, and his son Sitarambhai “Sammy” Bhakta. Over the years their hard work, dedication, and vision of their future has now grown into over 20 hotels within the Texas and New Mexico area, with most their properties in Texas. Imbue Investments is a family owned and operated business, and they believe their family atmosphere is one of their major core values, as they treat their employees as family. Their company has been a platform for not only their success and growth within the business, but also for their individual growth as well.

Sammy Bhakta is now the CEO of Imbue Investments. He has over 30 years of experience within the hospitality-hotel industry, and is a second generation hotel owner who has dedicated his life to his family, and his company. The company is taking new steps to grow even more as a successful business with the leadership of Sammy and his son, Sajan Bhakta. Sajan began his career in the hotel industry after graduating college and is working hard to continue the traditions and values instilled by Sammy in Imbue Investments. The overall goal is to grow within the midscale brand and to develop long-term relationships with the top franchisees in the industry. The primary focus in the midscale brands are new development properties that they can keep in the portfolio for long-term. The company focuses on building one property at a time which ensures that their focus remains on growing at a comfortable pace so that their resources are not depleted. Imbue has developed over 9 hotels from the ground up and has acquired and renovated over another 10 properties. Overall Imbue has management of approximately 20 properties. Imbue Investments believes that one of the most important parts of the hotel industry is to deliver the best customer service possible. Implementing a family oriented environment within each property shapes their beliefs at Imbue Investments, which also dictates every decision that is made. This has proven to be a significant indicator of a successful “customer first” business. Their staff is their family, and as with every family, they celebrate together. They celebrate successes, birthdays and holidays. They have weekly lunches, and they reward them for goals that are met. As their company continues to grow, their top leaders may not be able to physically attend each event, but their management teams do continue this tradition at each location. When an employee truly feels that they are a part of the family, they come to work with a purpose. Their happiness within their job show, and is then projected onto their work, their coworkers, and their guest who quickly recognize and acknowledge this. They consistently receive positive feedback in regards to this, which is why they strongly believe in their family atmosphere. It alone is a key factor in their goal of providing the best customer service possible. They aim to build a long-term relationship with their guest by providing a fair rate and exceeding their expectations of good customer service. Behind every sale, is a person, and they strongly acknowledge and respect this. They believe that price gouging their guest only leads to short-term revenue and long-term failure. Although this may slightly affect revenue numbers, they are comfortable knowing that it builds trust and loyalty within their guests as they continue to return to their properties. In today’s market, they understand that each of their guests have many lodging choices, and if the first impression of a hotel isn’t positive, then it can certainly be a last impression. Providing their guest with exceptional customer service is a primary focus at each of their properties. At Imbue Investments, the local communities play a major role in their business. Each one of their properties are required to have a manager join and attend their local chamber. They work closely with their schools, fire departments, police departments, and community improvement district offices. Each of their properties have different ways of giving back, and this is also a key factor within their family environment. Imbue Investments strives to continue the principles that were set in place by Maganbhia Bhakta and they continue to push further to grow more overall within the hospitality industry.

“Provide exceptional service In a property specific manner.”



PROJECT TEAM

Hotel Management Company Continued

48

Hotel Portfolio

La Quinta Inn & Suites* 8383 FM 1960 W, Houston, TX

La Quinta Inn & Suites* 22790 U. S. Highway 59 N, Kingwood, TX

La Quinta Inn & Suites* 801 Liberal St., Dalhart, TX

La Quinta Inn & Suites* 4006 Sprayberry Lane, Conroe, TX

La Quinta Inn & Suites* 1400 East Blvd., Deer Park, TX

La Quinta Inn & Suites^ 28673 I-45 N, Woodlands, TX

Days Inn* 701 Liberal St., Dalhart, TX

Days Inn- 1120 1st St., Clayton, NM

Best Western Plus* 19301 TX-6, Manvel, TX

Best Western Plus* 2101 S. Betty Ave., Monahans, TX

Americas Best Value^ 12349 FM 1960, Houston, TX

American Best Value^ 1130 FM 1960 Bypass, Humble, TX

Super 8- 1755 Idaho St., Elko, NV

Travelodge- 1785 Idaho St., Elko, NV

Premier Inn-^ 10431 E. Freeway, Houston, TX

*Managed and Owned -Only Owned ^Recently Acquired or Developed

“Provide exceptional service In a property specific manner.”

PROJECT TEAM

Hotel Awards

Ø Sammy Bhakta Franchisee of the Year 2015 Ø Certificate of Recognition by KSB J Sharathon 2015 (La Quinta Kingwood) Ø Certificate of Achievement (Top 50 in Guest Satisfaction for La Quinta Brand) 1st Quarter 2010 (La Quinta Kingwood) Ø Certificate of Achievement (Top 50 in Guest Satisfaction for La Quinta Brand) 2nd Quarter 2010 (La Quinta Kingwood) Ø Certificate of Achievement (Highest Guest Satisfaction Region 81) 1st Quarter 2008 (La Quinta Kingwood) Ø Certificate of Achievement (Highest Guest Satisfaction Region 81) 2nd Quarter 2008 (La Quinta Kingwood) Ø Superior Results Achievement 2007 (La Quinta Kingwood) Ø Winner TripAdvisor Certificate of Excellence 2015 (La Quinta Kingwood) Ø High Five Award Americas Favorite La Quinta 2012 (La Quinta Kingwood) Ø Property of the Year Ø Readers’ Choice Award from Dalhart Texan-Best Hotel 2016 Ø #1 Trip Advisor rank out of all Houston La Quintas’ 2016 (La Quinta Willowbrook) Ø Elite Property 2012 (La Quinta Kingwood) Ø Elite Property 2012 (La Quinta Deer Park) Ø Elite Property 2013 (La Quinta Deer Park) Ø Elite Property 2015 (La Quinta Deer Park) Ø Best QC Score 2005 (La Quinta Conroe) Ø Top 50 in Guest Satisfaction every quarter from 2002 – present (La Quinta Conroe) Ø Top 50 in Net Promoter every quarter from 2002 – present (La Quinta Conroe) Ø Elite Property 10 different years (La Quinta Conroe) Ø Highest Rating 1996 (Days Inn) Ø Highest Rating 1997 (Days Inn) Ø Highest Rating 1998 (Days Inn) Ø Highest Rating 1999 (Days Inn) Ø Highest Rating 2000 (Days Inn) Ø Highest Rating 2001 (Days Inn) Ø Highest Rating 2002 (Days Inn) Ø Highest Rating 2003 (Days Inn) Ø Chairman’s Property award 1998 (Days Inn) Ø Chairman’s Property award 1999 (Days Inn) Ø Chairman’s Property award 2000(Days Inn) Ø Chairman’s Property award 2001 (Days Inn) Ø Chairman’s Property award 2008 (Days Inn) Ø Chairman’s Property award 2009 (Days Inn)


Project Team Continued Hotel Management Company Continued

49

PROJECT TEAM

Letter of Reference



50

PROJECT TEAM

Letter of Reference



51

PROJECT TEAM

Letter Reference



52

PROJECT TEAM

Letter of Reference



53

About Gentry Mills Capital Gentry Mills Capital, LLC is a real estate investment firm whose purpose is to seek out, package and provide quality commercial real estate investment opportunities to investors represented by investment professionals in the financial services industry.

Gentry Mills Capital, LLC, previously known as Gentry Mills Consulting, LLC, was originally formed in 1997. Gentry Mills Consulting, LLC was formed and operated as a consulting entity and as the owner and manager of commercial real estate investments.

In June of 2006 the name of the firm was changed to Gentry Mills Capital, LLC. The purpose of the name change was to broaden the original intent of the firm to allow it to become the sponsor of a series of securities offerings involved in the ownership and or financing of commercial real estate. Gentry Mills Capital offerings will be sold through FINRA registered Broker Dealer firms.

Team Members

Gentry Mills Capital is very proud of the talented team of real estate professionals it has been able to assemble. GMC team members have total combined team experience in the commercial real estate and securities industry that extends beyond 150 years.

William P. “Billy” Glass, Managing Partner

In 1990, Mr. Glass began working as an external wholesaler and consultant, raising equity and debt capital for business enterprises and commercial real estate developments located throughout the United States. Between 1990 and 2006 Mr. Glass raised in excess of $250,000,000 through the broker dealer community via Regulation D, Private Placement Offerings. In 2006, Gentry Mills Consulting, LLC, originally formed in 1997, was renamed Gentry Mills Capital, LLC. Gentry Mills Capital is a real estate investment firm whose purpose is to seek out, package and provide quality commercial real estate investment opportunities to investors represented by investment professionals in the financial services industry. From 2006 to October of 2015, Mr. Glass has raised in excess of $100,000,000 for Gentry Mills Capital investment programs. Mr. Glass formerly served on the Board of Directors for Special Olympics of Texas currently serves on the Board of Directors for Behind the Walls Prison Ministries. Mr. Glass attended Baylor University and is a licensed Real Estate Broker. Mr. Glass resides in Southlake, Texas with his wife Laura. They have three grown children and 3 grandchildren.

Mr. Glass has been involved in the Commercial Real Estate business for more than 36 years. Mr. Glass began his career with Hank Dickerson & Company, a Dallas based commercial real estate brokerage and development company, where he received extensive training in all facets of the commercial real estate industry and quickly became one of the firm’s sales leaders. It was while working at Hank Dickerson & Company that Mr. Glass was first exposed to the utilization and structure of Real Estate Partnerships. In the fall of 1983, Mr. Glass started his own commercial real estate company, raising capital for income-producing, commercial real estate projects as well as land development. He completed 60 real estate related joint ventures and raised in excess of $30,000,000 before selling the firm in 1989 to a publicly traded company based in Atlanta, Georgia.

Robert S. “Scott” Palmer, Partner

Mr. Palmer began his career as a real estate salesman for Hank Dickerson and Company for eight years then spent another ten years as Mr. Dickerson’s partner in an entity focusing on opportunistic real estate investments until Mr. Dickerson’s death in 1996. Mr. Palmer then spent the next nine years at Macfarlan Real Estate Services specializing in opportunistic acquisitions while also serving on Macfarlan’s Investment Committee. Mr. Palmer left Macfarlan in July 2006 to form Gentry Mills Capital with Mr. Glass, where his focus is creating value through the innovative structure of real estate acquisitions and dispositions. Mr. Palmer attended the University of Texas and is a Dallas native where he lives with his wife and two daughters.

SPONSOR SPONSOR

www.gentrymillscapital.com 55

Rebecca L. “Becky” Welch, Sr. Vice President

Ms. Welch entered the commercial real estate industry in 1983 with the Henry S. Miller Company. In 1993, she began her career in the securities industry as the Investor Relations Manager at Sovereign Credit Corporation. Ms. Welch managed the “back-office” procedures of the Investor Relations Department (investor database, correspondence, reporting, distributions, customer service and sales assistance.) In 2003 Ms. Welch joined Macfarlan Real Estate Services ( now Macfarlan Capital Group) as Investor Relations Sales Manager where she managed the “back office” procedures of the Investor Relations Department and provided sales assistance to financial advisors and customer service to their clients. Ms. Welch also coordinated and managed all 1031 exchange closings.

In 2006 Ms. Welch left MacFarlan Real Estate Services when Mr. William Glass formed Gentry Mills Capital, LLC. Ms. Welch joined Gentry Mills Capital as Sr. Vice President and has 34 years of experience in the commercial real estate industry and 24 years experience working with Red D offerings (Alternative Investments) in the securities industry. Ms. Welch is part of the Sales Team marketing Gentry Mills Capital investment programs to registered representative in the Broker Dealer community. In addition to sales, Ms. Welch also manages the due diligence process for each investment offering as well as the development of marketing material to communicate effectively with advisors within the broker dealer community when bringing new investment products to market. Ms. Welch attended Cedar Valley College, has 1 grown daughter and resides in Waxahachie, Texas.

Terry C. “Chris” Reeves, Investor Relations Associate

Mr. Reeves joined Gentry Mills Capital as the Investor Relations Associate in July of 2012. Mr. Reeves spent 13 years working for Ben E. Keith Company, the 9th largest broad line foodservice distributor and 4th largest beverage distributor in the nation. During his tenure with Ben E. Keith, Mr. Reeves served as a National Salesman and Special Events Manager where building relationships and customer service were of the upmost importance. Mr. Reeves manages all “back office” procedures at Gentry Mills Capital. He receives all subscription documents from investors investing in GMC sponsored programs and reviews for accuracy and suitability. Additionally, Mr. Reeves maintains the investor database, sends out investor correspondence, reports, distributions and serves as the transfer agent. Most importantly, Mr. Reeves takes great pride in providing superior client service support to advisors and their clients. Mr. Reeves attended Tarleton State University and resides in Mesquite, Texas.

Joshua P. “Josh” Glass, Sales Associate Mr. Glass joined Gentry Mills Capital in March of 2015 as a Sales Associate after working five years with the nationally-known, non-profit organization, Behind the Walls Prison Ministries, where he assisted the founder in raising funds from various high net worth individuals and corporate sponsors. Mr. Glass is part of the Sales Team marketing Gentry Mills Capital investment programs to registered representatives in the Broker Dealer community to raise debt and equity capital. Mr. Glass is a graduate of Baylor University and resides in Keller, Texas with his wife and 3 children.

SPONSOR SPONSOR


Residence Inn By Marriott Austin, Texas

Bay Vista Apartments – Phase I Corpus Christi, Texas

Bay Vista Point Apartments – Phase II Corpus Christi, Texas

Hampton Inn & Suites Atlanta, Georgia

GMC Property Portfolio

The Sam Houston Hotel formerly the Alden Hotel

Downtown Houston, Texas

Plantation Apartments I Mission/McAllen, Texas

Plantation Apartments II Mission/McAllen, Texas

Fairfield Inn & Suites Cambridge, Ohio

GEN 4 Prototype Rendering Aloft Hotel Broomfield Denver

Broomfield, Colorado

Embassy Suites Hotel, located in Downtown Houston, Texas Hilton Garden Inn located in the Energy Corridor, Houston, Texas

SPONSOR SPONSOR


Element Hotel Palmdale, California

GMC Property Portfolio

Hilton Garden Inn O’Fallon, Illinois

Courtyard by Marriott Ronkonkoma, Long Island, New York

Hampton Inn & Suites Orlando, Florida

Hilton Garden Inn Overland Park, Kansas

Hampton Inn & Suites Lake Mary, Florida

Aloft by Westin Hotel Linthicum Heights, Maryland

Baltimore Washington International Airport

Hilton Garden Inn Fredericksburg, Virginia

Hampton Inn & Suites Annapolis, Maryland

SPONSOR SPONSOR


Rendering – Homewood Suites Hotel Ronkonkoma, Long Island, New York

Rendering - TownePlace Suites Irving, Texas

58

Hyatt Place Hotel Washington, D.C.


Gentry Mills Capital Offices

SPONSOR

The Overlook at Las Colinas – Offices of Gentry Mills Capital, LLC

59

Contact Information

The Overlook at Las Colinas

251 N. O’Connor Ridge Blvd, Suite 100 • Irving, Texas 75038

Main: (972) 759-8725 • Fax: (972) 759-8490

gentrymillscapital.com

SPONSOR SPONSOR


SPONSOR SOURCES


Sources: La Quinta Brochure provided by La Quinta Inns & Suites Austin Chamber of Commerce Austin, Texas – Wikipedia 2017 Greater Austin Economic Development Guide Lakeway Medical Flyer Lease provided by ECR – Equitable Commercial Realty ACVB, 2017 Austintexas.org

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