8
OFFERING SUMMARY • SAN MARCOS, TEXAS Holliday Fenoglio Fowler, L.P. (“HFF”) a Texas licensed real estate broker. 104 UNITS
OFFERING SUMMARY • SAN MARCOS, TEXASHolliday Fenoglio Fowler, L.P. (“HFF”) a Texas licensed real
estate broker.
104UNITS
NEST2
EXEC
UTI
VE
SUM
MA
RY
HFF has been exclusively retained to offer qualified investors the unique opportunity to acquire fee-simple interest in the Nest Apartments (The “Property”), a 104-unit garden apartment community ideally located in one of the fastest growing regions in the country. Constructed in 1975, the two-story property features 23 well maintained buildings on 5 acres along with an expansive dog park, a pool and lounge area, basketball court, and soccer field. Nest is located about a mile from the flagship campus of Texas State University, one of the fastest growing universities in the nation with over 38,000 students and projected to have 42,000 students by 2020. The property’s position near the intersection of IH-35 and Hwy 80 provides residents with direct access to the major thoroughfares in San Marcos and Central Texas - IH35, Hwy 80, Hwy 123, and Hwy 21 offer quick connection to the economic drivers fueling the city and region at large. Furthermore, the city of San Marcos is conveniently located between Austin and San Antonio and will continue to benefit from the explosive population and job growth projected along the dynamic growth corridor connecting the metro areas. The property is in excellent condition as current ownership has invested approximately $1 million into both interior and exterior capital improvements. The Nest provides investors with the opportunity to purchase a well maintained, cash-flowing property with significant upside by capturing further rent premiums via unit upgrades as well as bringing the current effective rental rates in-line with market.
PROPERT Y OVERVIEW
Address 518 Linda Dr. San Marcos, TXYear Built 1975Units 104Average Unit Size 764Rentable SF 79,420Occupancy (1/19/2018) 90.4%RUBS Water, Sewer, GasElectricty Individually metered, resident paysAcres 5Parcel #’s R12074, R12075
EXECUTIVE SUMMARY
Units % Unit Description Unit Type SF Total SF4 4% 1 BR - 1 BA A1 700 2,8005 5% 1 BR - 1.5 BA A2 740 3,700
30 29% 2 BR - 1 BA B1 760 22,80063 61% 2 BR - 1.5 BA B2 740 46,6201 1% 3 BR - 2 BA C1 1,500 1,5001 1% 4 BR - 2 BA D1 2,000 2,000
104 100% 764 79,420
UNIT MIX
NEST 3
EXEC
UTI
VE
SUM
MA
RY
SAN ANTONIO
AUSTIN
SAN MARCOS
35 MINUTESTO AUSTIN
40 MINUTESTO SAN ANTONIO
INVESTMENT HIGHLIGHTS
STRONG RESIDENTIAL RENTER MARKET The Nest Apartments are located in San Marcos, the county seat of Hays County. Hays County was marked as the 4th fastest growing county in the country in 2018. San Marcos alone has seen more than 35% population growth since 2010 primarily consisting of a renter heavy demographic. Today 71% of the population within a 3 mile radius of the property are renters and 51% of the population is within the prime renter age of 18-34.
THE CITY OF SAN MARCOS IS ANTICIPATING THE POPULATION TO GROW ALMOST 30% TO OVER 80,000 PEOPLE BY THE YEAR 2030.
NEST4
EXEC
UTI
VE
SUM
MA
RY
SAN ANTONIO
AUSTIN
SAN MARCOS
35 MINUTESTO AUSTIN
40 MINUTESTO SAN ANTONIO
PROVEN UPSIDE ON PERFORMING ASSET • Nest Apartments have performed extremely well over the last two years experiencing substantial revenue growth since January 2017 while
consistently maintaining occupancy north of 90%.
• The opportunity for continued growth exists as the rents are currently 11% below market comps with nominal rents of comparable properties at $997 ($1.30 PSF) vs the $902 ($1.18 PSF) effective rent being achieved at Nest.
Currently only 3 of the 104 units have been upgraded to the top end “designer” finish out. Units renovated to the designer level lease for over a $200 monthly premium on average. The property will be close to fully occupied moving into the upcoming leasing season, presenting investors the opportunity to bring effective rents up to market levels while continuing to upgrade the remaining units over time to capture the rent premiums being achieved on the higher end finish outs.
STAINLESS STEEL APPL IANCES
GRANITE COUNTERTOPS
PLUMBING F IXTURES
BACKSPLASH
FAUX WOOD PLANK FLOORING
RESURFACED CABINETS AND UPGRADED PULLS
MODERNIZED L IGHT F IXTURES
WOOD BL INDS
UPGRADED DOORS AND BATHROOM HARDWARE
POTENTIAL UNIT UPGRADES:
NEST 5
EXEC
UTI
VE
SUM
MA
RY
PREMIUM LOCATION WITH EXCELLENT VISIBILITY
Nest offers superior visibility near the corner of major thoroughfares IH-35 and Hwy 80, providing residents connectivity north, south, east, and west. • Both heavily travelled corridors, IH-35 has a traffic count of approximately 145,000 vehicles a day, and Hwy
80 has approximately 36,000 VPD
Located in the heart of San Marcos, Nest offers quick access to the area’s major economic drivers and employers such as Texas State University, San Marcos/Tanger Outlets, and Amazon’s new distribution center
TEXAS STATE UNIVERSITY • The 4th largest university in the state and is only about 1 mile from the property.
• The university is home to over 38,000 students and is projected to have 42,000 students by 2020
• Nest provides excellent access to the university and offers students a private off-campus lifestyle
SAN MARCOS/TANGER OUTLETS • Located directly off Insterstate-35, less than 10 minutes from Nest, The San Marcos Premium Outlets and
Tanger Factory Outlets combine to host over 550 stores and 3,600 employees
• One of the most popular attractions in the state, the malls have over 11 million annual visitors
AMAZON DISTRIBUTION CENTER • Due to the central location between Austin and San Antonio, Amazon recently opened a 855,000 square
foot fulfillment center in San Marcos
• Less than 8 minutes from Nest with more 1,000 employees
Residents are presented with a multitude of necessity based shopping and dining options with Walmart, HEB, Hobby Lobby, and Chuy’s amongst many others located within a mile from the property. Additionally San Marcos has become known for its entertaining night life, as over 15 bars and pubs surround ‘The Square’ less than a mile from the Nest
The greater San Marcos region sits in a large opportunity zone, surrounding the city center and the Nest. The opportunity zones coupled with the hot growth of central Texas and San Marcos bodes well for the property as the region as a whole will likely see continued investment and development for years to come
NEST6
EXEC
UTI
VE
SUM
MA
RY
36,000VPD
145,000VPD
SAN MARCOSDOWNTOWN SQUARE
BOBCATBALLPARK BOBCAT
STADIUM
TEXAS STATE UNIVERSITY4TH LARGEST IN THE STATE
38,000 STUDENTS/3,300 FACULTY & STAFF
SAN MARCOSACTIVITY CENTER
WALMART SUPERCENTER
AMAZON DISTRIBUTION CENTER8 MINUTE DRIVE TIME
855,000 SF | 1,000+ EMPLOYEES
SAN MARCOS/TANGER OUTLETS10 MINUTE DRIVE TIME
550 STORES
5 MINTEXAS STATE
CAMPUS
6 MINH-E-B
GROCERY
35 MINAUSTIN
40 MINSAN ANTONIO
30 MINAUSTIN BERGSTROM
INTERNATIONAL AIRPORT
DRIVE TIMES TO/FROM NEST
NEST 7
EXEC
UTI
VE
SUM
MA
RY
HFF has been engaged by the owner of the property to market it for sale. Information concerning the property described herein has been obtained from sources other than HFF, and neither Owner nor HFF, nor their respective equity holders, officers, employees and agents makes any representations or warranties, express or implied, as to the accuracy or com-pleteness of such information. Any and all reference to age, square footage, income, expenses and any other property specific information are approximate. Any opinions, assumptions, or estimates contained herein are projections only and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a purchaser, and HFF, its partners, officers, employees and agents disclaim any liability that may be based upon or related to the information contained herein. Prospective purchasers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change.
FORREST BASSSenior Director
MATT POHLSenior DirectorT: 512-532-1929
SPENCER ROYAssociate
SEAN WOLFFAnalyst
BRANDON ALLENAnalyst
Debt: CHRIS MCCOLPIN
Senior DirectorT: 512-532-1941
DEAL CONTACTS
