4.67 Acres

Nelms Drive

NELMS & I-354.67 AC | OFFERING MEMORANDUMAustin, Texas

Jones Lang LaSalle (JLL) has been exclusively retained to offer qualified investors the unique opportunity to purchase the Site (“Site” or “Proper-ty”) located at 1609 & 1701 Nelms Drive, a 4.67-acre parcel in the high per-forming Southeast submarket of Austin, Texas. Strategically located along IH-35 and William Cannon Boulevard Intersection, the Site offers direct access to trendy residential communities like South Congress, convenient retail amenities like South Park Meadows and St. Elmo District, and swift egress from the Site to Austin’s CBD. The convenient frontage off IH-35 allows for rapid access to major Austin thoroughfares, specifically South Congress Avenue, and US Highway 290/71.

EXECUTIVE SUMMARY

4.67 Acres

Nelms Drive

Property Summary

Location 1609 & 1701 Nelms Drive

Parcel # 380867 & 380868

Site Area 4.67 Acres

County/City/State Travis/Austin/Texas

Current Zoning CO:GR (Community Commercial)

Current Use Vacant Land

Impervious Coverage 90%

FAR 1:1

2 | Nelms & I-35

4.67 Acres

Nelms Drive

JLL | 3

INVESTMENT HIGHLIGHTSProximate to Major Economic Drivers• The Site is located in Southeast Austin in the heart of the booming

South Austin Corridor; South Austin continues to experience rapid growth as both residents and retailers flock to this centrally located corridor to avoid the exceedingly expensive rents that are being achieved in Austin’s CBD.

• Due to its convenient location, the Site is approximately a 5-minute drive to the SoCo district, 13-minute drive to Austin’s CBD, 18-minute drive to the University of Texas, and a 20-minute drive to the Austin airport.

• The major employment generators in this area include St. Edward’s, Oracle, St. Elmo District, UT/Dell Med School and COTA – these endeavors will continue to fuel gentrification and increase demand for this area.

Adjacent to Austin’s Emerging Neighborhoods• Located directly off IH-35, one of Austin’s most traveled

thoroughfares, residents are attracted to the area by the desirable residential communities, accessible retail, top school systems, and beautiful natural parks.

• Regarded for its affordability, the Southeast Austin area has attracted more singles, couples, and families as they realize the inexpensive housing and the convenience of being located close to downtown.

• Nestled in the heart of Southeast Austin, the Site is located near many accredited public schools, a highly ranked charter school, Wayside, and minutes away from St. Edwards University.

• Nearby home prices in the Garrison Park neighborhood increased 7.8% this year to achieve a median home price of $319,000.

Superior Access & Visibility• Located just Northeast of IH-35 and William Cannon Boulevard

intersection, the Site offers direct access to trendy residential communities, beautiful natural parks, and swift egress from the Site to Austin’s CBD. The convenient frontage off IH-35 allows for rapid access to major Austin thoroughfares, like South Congress Avenue.

• The Site features frontage along the South side of Nelms Drive and the West side of Bluff Springs Road with rapid access to some of Austin’s most desirable retail destinations like the Shops at South Park Meadows (1,520,000 SF), The Grove, and big-box stores like Super Target, Sam’s Club, Bed Bath & Beyond, and a 14-screen Cinemark Theater.

• The Property is surrounded by beautiful, scenic destinations like the popular McKinney Falls State Park, Williamson Creek Greenbelt, and Onion Creek Greenbelt.

4 | Nelms & I-35

DOWNTOWN AUSTIN

ST. EDWARDS UNIVERSITYST. EDWARDS UNIVERSITY

UNIVERSITYOF TEXAS

UNIVERSITYOF TEXAS

UT/DELLMED

SCHOOL

UT/DELLMED

SCHOOL

AUSTIN-BERGSTROMINTERNATIONAL

AIRPORT

AUSTIN-BERGSTROMINTERNATIONAL

AIRPORT10 MINS

WILLIAM CANNON DRIVEWILLIAM CANNON DRIVE

SAINT ELMO PUBLIC MARKET/THE YARD

mixed-use development

SOU

TH C

ON

GRES

S AV

ENU

ESO

UTH

CO

NGR

ESS

AVEN

UE

South Central

East Central

South Congress District

44,000 VPD

20,000 VPD

DowntownAustin110K

DaytimeEmployees

St. Elmo District

South Park Meadows

SOUTH PARK MEADOWS1.6MM SF OF RETAIL

SOUTH PARK MEADOWS1.6MM SF OF RETAIL

1609 & 1701Nelms Drive

Close Proximity to Major Employers

800 Employees

2,455 Employees

25,000 Employees

1,000 Employees

2,800 Employees

2,700 Employees

3,000 Employees

JLL | 5

SoCo District

5MINS

9MINS

10MINS

13MINS

18MINS

20MINS

Southpark Meadows South Shore District Downtown Austin University of Texas Austin Airport

Drive Times

LOCATION OVERVIEWThe Site is located in Austin’s rapidly growing Southeast submarket. Strategically located Northeast of the IH-35 and William Cannon Boulevard intersection, the Property offers direct access to trendy residential communities, convenient retail amenities, and swift egress from the Site to Austin’s CBD. The convenient frontage off IH-35 offers rapid access to major Austin thoroughfares, specifically South Congress Avenue, and US 29-/71.

The Site provides an unparalleled opportunity to acquire land in one of the fastest growing areas throughout Austin. Situated in the path of continued growth as Austin’s urban core, residents and local attractions, move South.

AREA DRIVERS

Shops at South Park Meadows• Largest retail outlet in Central Texas at 1.52 million SF, with over 90 stores, services

and restaurants

• The Grove is a unique outdoor entertainment venue offering seasonal special events, concerts and shows

• Super Target, Wal-Mart Super Center, JCPenney, Sam’s Club, Best Buy, Bed Bath & Beyond and 14-screen Cinemark theater

Future Oracle Campus• 580,000 SF Next Generation Tech Campus

• 3,000 Jobs

• Expanding Austin presence by 50%

• Purchased 295-unit Azul Lakeshore for employees

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AREA DRIVERS (CONT)

St. Elmo District • Future iconic destination in South Austin

• Austin’s first indoor-outdoor marketplace and a one-of-a kind cultural space

• Creative office space, 150 -room boutique hotel, Public Lofts condos, and The Yard mixed use development

• Highly curated culinary and cultural destination for Austinites as well as visitors and foodies from around the world

St. Elmo Public Market • Highly anticipated office space and “creative industry mecca”

• Inspirational environment will attract music, entertainment, media, and technology companies

• Focused on the unique aesthetic of Austin the space will feature open floor plans, natural light, tall ceilings, ample parking, and rooftop access

• Select retailers on the ground floor will complement the creative vibe of the space

Public Lofts • Austin’s most anticipated condominium development

• 160 condominium units adjacent to the St. Elmo Public Market

• Premium live-work play scenario- beautiful storefront lofts and access to Austin’s trendiest bars, shops, and local eateries

The Yard • Revitalization of a 150,000 SF warehouse

• Vibrant, mixed-use development boasting specialty restaurants & food shops, creative studios, and multiple breweries

• Located in a reinvigorated warehouse district, transforming the area into a supportive community of local businesses

8 | Nelms & I-35

South Congress District (SoCo)• World-renowned cultural, shopping and entertainment

district

• Eclectic mis of shops, restaurants, bars, food trailers, music venues and galleries as well as Austin’s most favored and highest-rated hotels

• Iconic retail corridor that represents the culture and character for which Austin is renowned

• Many notable retailers boasting some of the city’s highest sales revenue

Music Lane Redevelopment• Gateway to famed South Congress District (SoCo)

• 163,000 SF mixed-use development- SoHo House Austin, high street retail and market leading creative office space

• Soho House Austin- 38 hotel rooms, 10,000 SF private club space, a ground floor restaurant, rooftop restaurant, 10,000 Sf outdoor terrace and pool, screening room and Cowshed Spa

Innovation District• Future tech, business and entrepreneurial hub around

new Medical School

• Dell Medical School-17,000 Jobs

• Merck & Co.’s future global technology campus- 600 jobs

• Oversight by Seton/UT-led nonprofit known as Capital City Innovation

Downtown Austin • 110,000 Employees & 12,000 Residents

• 14.6 Million SF of Office Space

• Austin’s top employers: Facebook, Google, Whole Foods, Cirrus Logic, Expedia & Oracle

• 200 Restaurants, 150 Bars, 140 Retail Stores

JLL | 9

AUSTIN, TEXASThriving EconomyAlthough it maintains a laid-back vibe, the city dedicated to “Keeping Austin Weird” shows no signs of slowing down. A booming economy, growing job market, high quality of life and low cost of living make Austin a sought-after city for all ages. As one of the nation’s top economic performers, Austin is a thriving city with a young, highly educated and vibrant population that attracts business and tourism. The metro leads the nation in terms of population growth, fueled largely by the strongest rate of in-migration with an impressive 151 people moving to the city a day. The 11th largest population among U.S. cities, Austin’s population has expanded 23% between 2010 and 2017. The population explosion of the Texas capital, which reached approx-imately 2.1 million last year, is expected to soar 98.5% to nearly 4 million by 2040. Nearly doubling in size, Austin’s population is projected to grow faster than any other large U.S. city in the next 25 years. Named among Forbes 10 Best Cities for Jobs, Austin has one of the best job markets in the nation with a trend of nearly 20-year lows in the metro’s monthly unemployment rate. In the 12 months ending in November 2018, the Austin metro added 35,200 net new jobs, a growth rate of 3.3% and the seasonally adjusted unemployment rate is currently 2.7% (3.5% nationally).

NATION’S TOP HIGH-TECH HUB

Source: Wall Street Journal

No.1RISING CITY

FOR STARTUPSSource: Inc.

No.1BEST BIG CITY TO LIVE IN AMERICA

Source: Money

No.1AMERICA’S GREATEST

MUSIC CITYSource: Huffington Post

No.1

Best Place to Live in the U.S. 2017 & 2018Source: U.S. News and World Report

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Consistently named among the best places to live and work, Austin is universally regarded for its thriving economy, low cost of living and enviable quality of life. Austinites enjoy a reasonable cost of living with a median home price that is below the national average, lack of state income taxes and the highest per capita income of all major cities in the Lone Star State. In addition to a burgeoning downtown and prosperous employment opportunities, the city offers many museums, performing arts venues, sporting events and recreational activities.

Affectionately deemed “The Live Music Capital of the World”, Austin boasts over 1,700 live music venues and is home to South by Southwest (SXSW) and the ACL Music Festival, two of America’s largest media events. Austin is an enchanting city celebrated for its robust natural beauty and abundance of outdoor amenities, including Lady Bird Lake, Austin Hike and Bike Trail, Barton Creek, Lake Austin and numerous greenbelts. Central Texas boasts a cosmopolitan atmosphere without the big city stress and it is not hard to see why many people love to call Austin home.

BEST JOB MARKET

Source: Forbes

No.2LARGEST MILLENNIAL

POPULATIONSource: Brookings Institution

No.2MOST EXCITING FOOD

CITY IN AMERICASource: Zagat

No.2FOR ECONOMIC PERFORMANCE

Source: Milken Institute

Top 10

MILLIONANNUAL

VISITORS

27.4 $8 BILLIONANNUAL ECONOMIC IMPACT FROM

VISITOR SPENDING

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AUSTIN, TEXASHigh-Tech HubAustin’s economy continues to benefit from the technology sector boom that began in the 1990s, dubbing the metropolitan area “Silicon Hills”. One of the nation’s preeminent locations for technology, Austin is now growing four times faster than most of Silicon Valley--drawing talent and startups from all over the country.

Corporate Expansions & Relocations

• In the past decade Austin is the No. 1 city gaining company migrations from California.

• Austin has the highest tech salaries in the nation with an average salary of $202,000. (Adjusted for cost of living)

• 138,000 tech-related jobs. (14% of total jobs compared to 7% nationally)

• Austin’s strong tech presence fuels $31 billion into the economy, accounting for about 35% of the total.

APPLE ANNOUNCES NEW $1 BILLION AUSTIN CAMPUS AS PART OF BIG US EXPANSION

The new 133-acre development is expected to make it the largest private employer in Austin. Apple expects the new campus to accommodate 5,000 employees at first, though it will ultimately have a total capacity of 15,000.

Source: www.theverge.com/2018/12/13/18139009/apple-billion-dollar-austin-campus-us-expansion

6,000EMPLOYEES

2,700EMPLOYEES

6,000+EMPLOYEES

(11,000 Potential)

2,800EMPLOYEES

IT INNOVATION CENTER

3,800EMPLOYEES

6,600EMPLOYEES

(7,400 Potential)

13,000EMPLOYEES

1,800+EMPLOYEES

(4,500 Potential)

5,000+EMPLOYEES

(10,000 Potential)

“Literally, many, many pieces of our company are here. The team here is a very critical part of our company, and we’ve been very happy here.”TIM COOK, CEO OF APPLE

12 | Nelms & I-35

1

AUSTINAUSTIN

CEDAR PARKCEDAR PARKROUND ROCKROUND ROCK

CENTRAL BUSINESS DISTRICT

MSA POPULATION

The Most Populous City in the U.S.

2.1MNEW RESIDENTS

DAILYSource: Brookings Institution

151HOUSING GROWTH

SINCE 2010Source: Zagat

18.6%POPULATION WITH

BACHELOR’S DEGREE OR HIGHER32% Nationally

45%

JLL | 13

Copyright © Jones Lang LaSalle IP, Inc. 2019

This publication is the sole property of Jones Lang LaSalle and must not be copied, reproduced or transmitted in any form or by any means, either in whole or in part, without the prior written consent of Jones Lang LaSalle. The information contained in this publication has been obtained from sources generally regarded to be reliable. However, no representation is made, or warranty given, in respect of the accuracy of this information. We would like to be informed of any inaccuracies so that we may correct them. Jones Lang LaSalle does not accept any liability in negligence or otherwise for any loss or damage suffered by any party resulting from reliance on this publication. Jones Lang LaSalle Americas, Inc., California license # 01223413. Jones Lang LaSalle Americas, Inc. License # 19262.

Any opinion or estimate of value of any asset in this presentation is based upon the high-level preliminary review by JLL. It is not the same as the opinion of value in an appraisal developed by a licensed appraiser under the Uniform Standards of Professional Appraisal Practice. JLL expressly disclaims any liability for any reliance on any opinion or estimate of value in this presentation by any party.

500 West 5th Street, Suite 1200 | Austin, TX 78701

www.us.jll.com/capitalmarkets

Contact information

Garrett Gilleland DirectorJLL Capital Markets+1 512 532 1968garrett.gilleland@am.jll.com

Joe Dowdle Senior Vice PresidentJLL Capital Markets+1 512 593 4901joe.dowdle@am.jll.com

Schafer Smartt AnalystJLL Capital Markets+1 512 532 1971schafer.smartt@am.jll.com

ADVISORS