SOUTH I-35

Austin, TX 787412211WILL NELSON

512 539 3013will.nelson@colliers.com

DOUG RAULS512 539 3006

doug.rauls@colliers.com

COLLIERS INTERNATIONAL111 Congress Ave, Suite 750

Austin, TX 78701512 539 3000

www.colliers.com/texasOFFERING MEMORANDUM

#1Austin is

ranked the number one market for real estate investment by PwC and Urban Land Institute.

Austin is ranked the number one market for real estate investment by PwC and Urban Land Institute.

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EXECUTIVE SUMMARYEXECUTIVE SUMMARY

2211 S I-35 is a 43,689 RSF, 4 story office building located in the Southeast submarket of Austin, TX. The building was fully remodeled in 2019 and offers fantastic downtown Austin views from floors two, three and four. 2211 offers an investor or owner/user the ability to purchase a very well located, renovated office building in one of the strongest commercial real estate markets in the United States. Very few office buildings come to market in this size range anywhere in Austin; even fewer located this close to downtown Austin with both existing income and the opportunity to increase rents. We expect to see significant interest in this asset.

IN PLACE INCOME WITH OPPORTUNITY TO SUBSTANTIALLY INCREASE NOI

The property is currently 80% leased to a variety of tenants. We have rolled approximately 8,000 SF (18%) of the leases to market rates ($16 NNN or higher). A new owner has an opportunity to continue to roll tenants to market rates and lease the vacant spaces. With a gross rate of $26.30 per square foot per year, 2211 S I-35 offers one of the least expensive rates in Austin while also offering a renovated building that is only 2.5 miles from downtown. We believe that market rental rates could drastically increase in this area of Austin over the next few years, as it offers one of the only affordable rents close to downtown.

BUILDING RENOVATION

The building saw a major renovation in 2019, including remodeling all common areas with new flooring, paint, ceiling grid and lighting. All of the restrooms were fully remodeled. The main building lobby on the first floor and the secondary lobby on the second floor were both fully renovated with new directories, full glass exterior entry doors and access card systems. The building exterior was repainted in November 2019 as well as new landscaping improvements.

LOCATION

2211 S I-35 is located it the northeast quadrant of Interstate 35 & Oltorf Street. The property has a high level of visibility from I-35 southbound and northbound offering an excellent signage opportunity for an owner/user or lead tenant. The property has access from two driveways on I-35 and

Address 2211 S I-35 Austin, TX 78741

Occupancy 80%

Size 43,689 SF

Acres 2.08 acres

Year Renovated 2019

Number of Floors 4

Number of Tenants 21

Zoning LR-NP

Parking 138 Spaces

KEY FACTS

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access to Oltorf Street through a new retail center parking lot currently under construction to the south. The adjacent property to the south is under construction and will deliver in Q1 2020. The project will be a multi-tenant retail center offering walkable amenities to 2211. I-35 improvements directly in front of the building have recently been completed improving access to the property. The property offers very close proximity to downtown Austin (2.5 miles) Oracle’s new campus and Riverside Drive corridor (2 miles) and South Congress Avenue amenities (1.5 miles).

SUBMARKET

The Southeast submarket has seen significant growth over the last 5 years. The 500,000 SF Oracle campus off Riverside Drive has drastically increased interest in this office submarket. Riverside Drive is seeing incredible growth with new developments under construction and many more planned. Furthermore, the South Congress corridor 1.5 miles to the West continues to solidify its reputation as one of the best micro-markets in Austin with a solid mix of Office/Retail/Restaurant/Hotel properties. We expect that trend will continue over time and the Southeast submarket will continue to improve.

VALUE

The likely buyer for 2211 S I-35 is either an owner/user that needs to occupy about 10,000 SF or an investor that will continue to execute on our strategy of increasing rental rates at the building. In the last 12 months, the current owners have renewed a number of tenants at market rates and leased up some of the vacant spaces. The remaining month to month tenants and leases expiring in 2020 offer a new owner the ability to greatly improve the income of the property.

Tenant Rental Rate (NNN) New Deal or Renewal Lease Commencement

A+ Staffing $16.25 New Deal September 1st, 2019

Delphi Group $16.00 Renewal April 1st, 2019

Workman Commercial $16.00 Renewal November 1st, 2019

Anderson Properties $16.00 New July 1st, 2019

EXECUTIVE SUMMARY

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EXECUTIVE SUMMARY

Listing Release November 11, 2019

Offers Prospective purchasers are encouraged along with offer to submit a resume and proof of funds

Contract Execution Upon completion of the selection process, Purchaser and Seller will execute a Purchase and Sale Agreement on Sellers form

Title Company Stewart Title Company

SALE PROCESS TIMELINE

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EXECUTIVE SUMMARYSURVEY

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PROPERTY PHOTOS

SOUTHWEST CORNER VIEW NORTH ENTRANCE THIRD FLOOR LOBBY

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RENOVATED RESTROOMS FIRST FLOOR COMMON AREA

FIRST FLOOR LOBBY NORTH ENTRANCE

PROPERTY PHOTOS

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LOCATION

Location Distance Time

Downtown Austin 2.5 Miles 8 Minutes

South Congress 1.5 Miles 5 Minutes

Austin-Bergstrom International Airport 7.9 Miles 15 Minutes

Oracle Campus 2 Miles 6 Minutes

DOWNTOWN AUSTIN EAST AUSTIN

SOUTH CONGRESS

2211S INTERSTATE 35

The Forum Park office building is in close proximity to downtown Austin, East Austin and South Congress. Right next door is a new retail development with tenants like Tiff’s Treats and ATI Physical Therapy. Just a few minutes away is the Oracle Campus that is soon to be surrounded by over one million square feet of office along with a hotel project and over 6,000 units of multifamily.

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NEW RETAIL DEVELOPMENT

DOWNTOWN AUSTIN

PROJECT CATALYST

EAST AUSTIN

DELIVERS DEC 2019

9 MILLION SF DEVELOPMENT

SOUTH CONGRESS

OLTORFT ST

RIVERSIDE RD

INTERSTATE 35Northbound 76,393Southbound 77,945

Eastbound 11,997Westbound 23,996

Eastbound 13,944Westbound 27,631

TRAFFIC COUNTS

TRAFFIC COUNTS

TRAFFIC COUNTS

2211S INTERSTATE 35

LOCATION

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2211 South I-35 has an ideal location close to popular areas like downtown, the east-side and South Congress. Comparatively, our rate of $27.30 Full Service is 46% lower than the average rate in the CBD, 28% lower than the average rate in the East Submarket and 30% lower than the average rate in the South Submarket.

MARKET LEASE RATE COMPARISON

AVERAGE GROSS RENTAL RATES

Cali Map

Untitled layer

SOUTHWEST$39.09

NORTHWEST & DOMAIN$33.92

CBD$50.83

EAST$38.48

INVENTORY

2.3M SF

INVENTORY

19.9M SF

INVENTORY

9.6M SFINVENTORY

11.2M SF

INVENTORY

1.75M SF

2211 S I-35$27.30

SOUTH$39.72

TYPES OF REAL ESTATE LICENSE HOLDERS: • A BROKER is responsible for all brokerage activities, including acts performed by sales agents

sponsored by the broker.• A SALES AGENT must be sponsored by a broker and works with clients on behalf of the broker.

A BROKER’S MINIMUM DUTIES REQUIRED BY LAW (A client is the person or party that the broker represents): • Put the interests of the client above all other, including the broker’s own interest;• Inform the client of any material information about the property or transaction received by the broker;• Answer the client’s questions and present any offer to or counter-offer from the client; and• Treat all parties to a real estate transaction honestly and fairly.

A LICENSE HOLDER CAN REPRESENT A PARTY IN A REAL ESTATE TRANSACTION:

AS AGENT FOR OWNER (SELLER/LANDLORD): The broker becomes the property owner’s agent through an agreement with the owner, usually in a written listing to sell or property management agreement. An owner’s agent must perform the broker’s minimum duties above and must inform the owner of any material information about the property or transaction known by the agent, including information disclosed to the agent or subagent by the buyer or buyer’s agent/

AS AGENT FOR BUYER/TENANT: The broker becomes the buyers/tenant’s agent by agreeing to represent the buyer, usually though a written representation agreement. A buyer’s agent must perform the broker’s minimum duties above and must inform the buyer of any material information about the property or transaction known by the agent, including information disclosed to the agent by the seller or seller’s agent.

AS AGENT FOR BOTH – INTERMEDIARY: To act as an intermediary between the parties the broker must first obtain the written agreement of each party to the transaction. The written agreement must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker’s obligations as an intermediary. A broker who acts as an intermediary: • Must treat all parties to the transaction impartially and fairly;• May, with the parties’ written consent, appoint a different license holder associated with the broker to

each party (owner and buyer) to communicate with, provide opinion and advice to, and carry out theinstructions of each party to the transaction.

• Must not, unless specifically authorized in writing to do so by the party, disclose:• That the owner will accept a price less than the written asking price;• That the buyer/tenant will pay a price greater than the price submitted in a written offer;

and• Any confidential information or any other information that a party specifically instructs the

broker in writing not to disclose, unless required to do so by law.

AS SUBAGENT: A license holder acts as a subagent when aiding a buyer in a transaction without an agreement to represent the buyer. A subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first.

TO AVOID DISPUTES, ALL AGREEMENTS BETWEEN YOU AND A BROKER SHOULD BE IN WRITING AND CLEARLY ESTABLISHED: • The broker’s duties and responsibilities to you, and your obligations under the representation

agreement.• Who will pay the broker for services provided to you, when payment will be made and how the

payment will be calculated.

LICENSE HOLDER CONTACT INFORMATION: This notice is being provided for information purposed. It does not create an obligation for you to use the broker’s services. Please acknowledge receipt of this notice below and retain a copy for your records.

Information About Brokerage Services Texas law requires all real estate license holders to give the following information about brokerage services to

prospective buyers, tenants, sellers and landlords.

__________________________ ________ ________________

Licensed Broker/Broker Firm Name or Primary Assumed Business Name

License No. Phone

__________________________ ________________Designated Broker of Firm License No. Phone

__________________________ ______ ________________

Licensed Supervisor of Sales Agent/Associate

License No. Phone

__________________________ ________________

Sales Agent/Associate’s Name License No. Phone

____________ _____________ _______________

Buyer/Tenant/Seller/Landlord Initials Date

Colliers International | 111 Congress Avenue, Suite 750 | Austin, TX 78701 | Main +1 512 539 3000 | www.colliers.com

Colliers International Austin, Inc. 9003290 austin.info@colliers.com

_____________________Email

(512) 539-3000

Volney Campbell 364845 (512) 539-3002

Email

volney.campbell@colliers.com__________________________

Email________

Doug Rauls (512)539-3006______462355doug.rauls@colliers.com ____________________

Email

WILL NELSON512 539 3013will.nelson@colliers.com

DOUG RAULS512 539 3006doug.rauls@colliers.com

This document/email has been prepared by Colliers International for advertising and general information only. Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from. This publication is the copyrighted property of Colliers International and /or its licensor(s). © 2014. All rights reserved. This communication is not intended to cause or induce breach of an existing listing agreement. Colliers Macaulay Nicolls (Ontario) Brokerage Inc.

COLLIERS INTERNATIONAL111 Congress Ave, Suite 750Austin, TX 78701512 539 3000www.colliers.com/texas