8
INVESTMENT SUMMARY AUSTIN, TEXAS 4715 SOUTH LAMAR
INVESTMENT SUMMARY
AUSTIN, TEXAS
4715SOUTH LAMAR
2 4715 SOUTH LAMAR
PROPERTY SUMMARYProperty: 4715 S Lamar Boulevard, Sunset
Valley, Texas 78745Size: 12,613 SFAcreage: +/- 3.94 AcresOccupancy: 100%# of Tenants: 5Year Built (Renovated): 2007 (2015)Parking: 15/1,000 (190 spaces)Pricing: Unpriced
DEMOGRAPHICS1 MILE 3 MILES 5 MILES
POPULATION2018 Estimate 5,137 107,464 198,881% Change 2010 to 2018 7.81% 11.98% 16.44%EDUCATION & INCOMEBachelor’s Degree or Higher 52.70% 51.26% 50.73%2018 Avg. Household Income $95,447 $99,285 $107,498
HFF has been exclusively retained by ownership to offer qualified investors the opportunity to purchase 4715 South Lamar (the “Property”), a 12,613 square-foot neighborhood retail center located along one of the most established and recognized north/south arteries in Austin, Lamar Boulevard, at the entrance to the premier shopping destination Sunset Valley. In addition to the Property’s unmatched location, 4715 South Lamar presents a complimentary mix of “internet-proof” restaurants and service tenants ranging from well-known regional operators to local tenants. The Property features stable cash flow, contractual rent steps and long-term value enhancement through additional development potential the site offers.
EXECUTIVE SUMMARY
34715 SOUTH LAMAR
S. L
amar
Blv
d
West Gate Blvd
S. Lamar Blvd
Jones Rd
W Ben White BlvdW Ben White Blvd
SH 71 / US Hwy 290SH 71 / US Hwy 290
Loop 1 (Mopac)
85,000 VDP
Erne
st R
oble
s Way
S. Capital of Texas Hwy
S. Capital of Texas Hwy
120,000 VDP
113,000 VDP
164,000 VDP
BARTON CREEK GREENBELT
BARTON CREEK SQUARE MALL 1.4 MM SF regional mallOver 180 specialty shops
BARTON CREEK SQUARE MALL 1.4 MM SF regional mallOver 180 specialty shops
SUNSET VALLEY2 MM SF retail
Largest shopping destination in Austin
SUNSET VALLEY2 MM SF retail
Largest shopping destination in Austin
WESTLAKE HILLS($910k+ Average Home Value)
WESTLAKE HILLS($910k+ Average Home Value)
ROLLINGWOOD ($1.2mm Average Home Value)
ROLLINGWOOD ($1.2mm Average Home Value)
BARTON CREEK GREENBELT(809 acres of protected land)
TEXAS STATE CAPITOL
DOWNTOWN
EAST AUSTIN
SOCO DISTRICT
SOUTH LAMAR
TONEY BURGER ACTIVITY CENTER & STADIUM
TONEY BURGER ACTIVITY CENTER & STADIUM
ZILKER PARK
BARTON HILLS($750k+ Average Home Value)
WESTGATE SHOPPING CENTERWESTGATE SHOPPING CENTER
BRODIE OAKS SHOPPING CENTERBRODIE OAKS SHOPPING CENTERBRODIE OAKS SHOPPING CENTER
4715South Lamar
AERIAL
4 4715 SOUTH LAMAR
STABLE AND PREDICTABLE CASH FLOWInternet-Resistant Tenant Mix: 100% leased retail center featuring an excellent merchandising mix including Stouthaus Coffee, residential real estate Posh Properties, Milk & Honey salon and spa, as well as dining favorites Cane Rosso Neapolitan style pizza, and Austin original Funkadelic Brunch.
Balanced Rollover: Staggered lease rollover with 5.2-years of weighted average lease term remaining, coupled with strong in place rental rates allows for predictable and reduced leasing risk throughout the hold period.
Minimal Near-Term Capital Needs: New Class A award winning renovations offer enhanced visibility, while minimizing the need for future capital expenditures.
Significant Income Growth Opportunity: The Property’s rent growth is projected to reach 30% over the next 10-years.
12% Rent Growth 30% Rent Growth
$10
$12
$14
$16
$18
$20
$22
$24
$26
83%
84%
86%
87%
88%
89%
91%
92%
93%
2010 2011 2012 2013 2014 2015 2016 2017 2018 YTD
Southwest Austin Austin Occupancy
$10
$12
$14
$16
$18
$20
$22
$24
$26
$28
$30
85%
87%
88%
90%
91%
93%
94%
96%
97%
99%
100%
2010 2011 2012 2013 2014 2015 2016 2017 2018 YTD
Austin Southwest Austin Occupancy
$26
$24
$22
$20
$18
$16
$14
$12
$10
$8
$6
$4
$2
02010 2011 2012 2013 2014 2015 2016 2017 2018 YTD
Southwest Austin Northwest
4,500,000
4,000,000
3,500,000
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
02010 2011 2012 2013 2014 2015 2016 2017 2018 YTD
Absorption Completions
450,000
400,000
350,000
300,000
250,000
200,000
150,000
100,000
50,000
0
-50,000
2010 2011 2012 2013 2014 2015 2016 2017 2018 YTD
Absorption Completions
$550K
$500K
$450K
$400K
$350K2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
RENT GROWTH CHART
54715 SOUTH LAMAR
EXCELLENT PROPERTY FUNDAMENTALSSuperior Access: 4715 South Lamar has excellent access provided by two (2) points of ingress/egress along S Lamar Boulevard and Highway 290 / W. Ben White.
Unrivaled Curb Appeal: Award winning Class A state of the art construction, designed by Michael Hsu Office of Architecture.
Outdoor Patios: Cane Rosso and Stouthaus Coffee feature cool outdoor seating areas – a must for Austin locals and out of town visitors.
Going Home Side of the Road: The Property is located on the “going home” side of Highway 71 providing a permanent locational advantage to shoppers leaving Sunset Valley.
Strong Traffic Counts: Over 100,000+ vehicles pass by the Property daily along S Lamar Boulevard and Hwy 290 / W. Ben White.
FUTURE DEVELOPMENT POTENTIALExcess Land: Site currently has 56.58% impervious cover which may leave potential for additional development.
Potential Uses: Site ultimately has potential to accommodate a higher density structure with numerous uses such as mixed-use office/retail or hotel.
6 4715 SOUTH LAMAR
Unique Zoning: Subject to Sunset Valley development code and not City of Austin.
HIGH PROFILE LAMAR ADDRESSStrategic Location: Excellent visibility, tenant signage, and access to Hwy 290 / W. Ben White between Brodie Lane and S Lamar Boulevard. Approximately 15 minutes from downtown Austin and 18 minutes to Austin Bergstrom International Airport.
Lamar Corridor: Lamar Boulevard is the major North/South artery for Southwest Austin, offering access to and from downtown and numerous other business and residential nodes.
Expansive Trade Area: With few quality dining, salon, and service options in South Austin, the Property serves a much larger trade area that allows existing tenants to take advantage of demand from the city’s most affluent neighborhoods.
Affluent Neighborhoods: Sunset Valley, Westlake Hills, South Lamar, Barton Hills, and Travis Country provide a superior customer profile for the tenants.
Housing Values: Median home values in 1-mile radius exceed $350,000.
Premier Retail Shopping Node: The Property is at the doorstep to Sunset Valley, Austin’s largest shopping destination with over 2 million square feet of retail space – an area which boasts some of the City’s highest sales and lease rates per square foot.
SUNSET VALLEY, TEXAS4715 South Lamar represents the front door to Sunset Valley, Texas, surrounded by the city of Austin. The one-square mile city south of downtown Austin offers everything the fast-growing city has to offer, with its own unique set of regulations.
• Quality of Life: Strategic planning decisions have led to robust residential communities and destination shopping centers, with hiking trails and open spaces.
• Tax Advantage: The City of Sunset Valley has no property tax, reducing tenant’s overall NNN expenses.
• Limited Future Construction: Prohibitive land costs, impervious coverage restrictions and stringent zoning standards limit future surrounding development.
HIGHLIGHTS
74715 SOUTH LAMAR
NATION LEADING ECONOMY• Austin is the “#1 City for Real Estate Investment” – ULI
• “Fastest Growing City in the Country” - Forbes
• “#1 in Best Places to Live in the USA” – U.S. News and World Report
• 159 people moving to the city per day – Austin Chamber
• 30,000 new jobs added in 2017
• Unemployment rate to 2.8%
• “Silicon Hills” – one of the nation’s preeminent locations for technology - 125,000+ employees and 5,000+ technology companies
• Recent major expansion & relocation announcements from companies such as Indeed, Oracle, Apple, Google, eBay, Amazon, Expedia, Samsung, Charles Schwab and many more major national companies
8 4715 SOUTH LAMAR
4715SOUTH LAMAR
CHRIS MCCOLPINSenior DirectorT: [email protected]
CATHY NABOURSManaging DirectorT: [email protected]
WALTER SAADManaging DirectorT: [email protected]
DREW FULLERDirectorT: [email protected]
DOM ESPINOSAAnalystT: [email protected]
SCHAFER SMARTTAnalystT: [email protected]
DEAL TEAMDEBT CONTACT
HFF has been engaged by the owner of the property to market it for sale. Information concerning the property described herein has been obtained from sources other than HFF, and neither Owner nor HFF, nor their respective equity holders, officers, employees and agents makes any representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all reference to age, square footage, income, expenses and any other property specific information are approximate. Any opinions, assumptions, or estimates contained herein are projections only and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a purchaser, and HFF, its partners, officers, employees and agents disclaim any liability that may be based upon or related to the information contained herein. Prospective purchasers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change.
