barton creek village · hills of southwest austin, texas. situated at the corner of barton creek...

BARTON CREEK VILLAGE

Holliday Fenoglio Fowler, L.P. (“HFF”) a Texas licensed real estate broker.

OFFERING SUMMARY

2700 BARTON CREEK BLVD AUSTIN, T X 78735

HFF is pleased to offer the opportunity to purchase Barton Creek Village (the “Property”), a two-story mixed-use retail and office building located in the rolling hills of Southwest Austin, Texas. Situated at the corner of Barton Creek Boulevard and Wimberly Lane, Barton Creek Village is surrounded by the city’s most affluent neighborhoods including the prestigious Barton Creek master planned community comprised of over 1,000 luxury homes (ranging from $500,000 to over $20 million), a 4-star resort & spa, four championship golf courses and numerous senior living communities.

Currently 63% leased to a mix of national, regional and local tenants at below market rental rates, the 22,366-square foot building features quality finishes with a desirable tenant mix including service-oriented and necessity-based retailers and a variety of office tenants primarily focused on serving the surrounding community. The offering provides an investor the opportunity to establish an unmatched presence in one of the strongest submarkets of one of the most dynamic and fastest growing cities in the United States.

FOR THE SECOND YEAR IN A ROW, AUSTIN HAS

BEEN NAMED#1 BEST PLACE TO LIVE IN THE U.S.

2017 & 2018Source: U.S. News and World Report


EXECUTIVE SUMMARY HIGHLIGHTS PROPERTY DESCRIPTIONDEAL TEAMBARTON CREEK VILLAGE2

PROPERTY SUMMARYPricing: $8,000,000 ($357/PSF)Property: 2700 Barton Creek Blvd Austin, TX 78735Size: 22,366 SFAcreage: +/- 4.1 AcresOccupancy: 63%Year Built: 2006Parking: 7.2/1000 (132 total spaces, 29 of which are

covered)

DEMOGRAPHICS1 MILE 3 MILES 5 MILES

POPULATION2018 Estimate 3,456 21,889 86,928% Change 2010 to 2018 24.68% 20.03% 19.57%EDUCATIONBachelor’s Degree or Higher 77.61% 74.19% 69.66%Average Household Income $252,989 $222,874 $182,261

• Significant value-add opportunity with 50% NOI growth projected over the next 5 years

• 8,230 square feet of vacancy coupled with in-place rent 6.7% below market, presents the opportunity for an additional $237,360 in annual revenue

• Surrounded by Austin’s most prestigious neighborhoods

• Located in Austin’s superior southwest submarket

TENANT OVERVIEWTENANT SF % OF GLA LXPFM Services Company 3,790 16.9% Jan-21WB Dry Cleaning 1,106 4.9% Jul-22512 Nails 1,279 5.7% Nov-22Kuper Sotheby’s 1,848 8.3% Jun-23The Market 3,671 16.4% Jul-24Dr. John Schiro 2,442 10.9% Nov-24Vacant (1) 1,750Vacant 2,729Vacant 3,751TOTAL 22,366 63.2%(1) Lone Star Eye is modeled vacant, but will be vacating Dec-18.

FINANCIALS OFFICE & RETAIL OVERVIEW ECONOMIC OVERVIEW BARTON CREEK VILLAGE 3

SIGNIFICANT VALUE-ADD OPPORTUNITY

• 63% leased with 5-year weighted average remaining lease term provides stable near-term cash flow and value enhancement through execution of new leases at increased market rates

• In-place rental rates are 6.7% below market, coupled with lease-up of 8,230 square feet of vacancy presents the opportunity for an additional $237,360 in annual base rent

• 1st floor vacancy (1,745 sf) presents an opportunity to re-tenant the space with a restaurant user, who would be further enhanced by the expansive outdoor patio

• The property’s NOI growth is projected to be 50% from years 1 through year 5, and 20% from year 5 through year 10

$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

$800,000

$600,000

$400,000

$200,000

0Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

NOI GROWTH

50% (Years 1-5) 20% (Years 5-10)

HIGHLIGHTS


IRREPLACEABLE SOUTHWEST LOCATION

• Located at the corner of Barton Creek Boulevard and Wimberly Lane amidst the rolling hills of southwest Austin with scenic Hill Country views

• Multiple greenbelts preserve natural setting and severely limit future development in the area

• Bee Caves Road (RM 2244) and Southwest Parkway are two of the major East/West arteries for Southwest Austin, offering access to downtown in 20 minutes

• Highly amenitized location within a short distance to the 800,000-square foot Hill Country Galleria and AAA four-diamond rated hotel Omni Barton Creek Resort & Spa

• Surrounded by Austin’s most prestigious neighborhoods including Barton Creek, West Lake Hills, Rob Roy, Davenport, and Rollingwood

• Average housing value in 1-mile radius is $936,531 with homes ranging from $800,000 to $8 million

• Average household income in 1-mile radius is $252,989 with a population of 3,456 and an expected growth of 11.40% between 2018-2022

WITH HOMES RANGING FROM

$800,000 TO $8 MILLION

AVERAGE HOUSING VALUE WITHIN A 1 MILE RADIUS

$936,531


BEE CAVES ROAD

BARTON CREEK BLVD

UNIVERSITY OF TEXAS

DIMENSIONAL FUND ADVISORS

ST. MICHAEL'S CATHOLIC ACADEMY

DOWNTOWN AUSTIN

APPLE

HOTEL GRANDUCA

BARTON CREEK

BARTON CREEK COUNTRY CLUB

QUERENCIA AT BARTON CREEK

ST. GABRIEL'S CATHOLIC SCHOOL


OMNI BARTON CREEKRESORT & SPA


RARE NEIGHBORHOOD MIXED-USE ASSET

• High quality mixed-use office and retail building featuring a diverse mix of national, regional, and local tenants that drive continuous traffic to Barton Creek Village

• 10,248 square feet of first floor retail contributes a diverse internet resistant and necessity-based merchandising mix to the surrounding affluent neighborhoods, including the adjacent upscale senior living community, Querencia

• The 12,118 square feet of second floor office space includes a variety of industries including financial advising and international real estate

• Timeless Hill Country design features include roughhewn local limestone façade, black granite tile lobby floors, and floor-to-ceiling glass

• Meticulously landscaped 4.1-acre site

• Above market 7.2: 1,000 covered and surface parking

TOP PERFORMING SUBMARKET

• Southwest Austin’s office and retail submarkets continue to grow into some of Central Texas’ top performing submarkets

• Record setting retail occupancy at 97.3% across the Southwest retail submarket

• Office and retail rental rates outperform the Austin MSA and Northwest submarkets, currently averaging $24.50 per square foot NNN (office) and $27.88 per square foot NNN (retail)

• Highly constrained development corridor – prohibitive land costs, impervious coverage restrictions, stringent zoning standards, and lack of available sites limit future development in the area

• Continued high-tech expansion of the following employers:


NATION LEADING ECONOMY

• Austin Is The “#1 City for Real Estate Investment,” – ULI

• “Fastest Growing City in the Country” - Forbes

• “Top Five Best Cities for New Jobs” for the fourth year in a row – Forbes

• 157 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

13,000 EMPLOYEES

6,000 EMPLOYEES

5,000 EMPLOYEES

2,000 EMPLOYEES

6,000 EMPLOYEES

3,500 EMPLOYEES



CONTACTSWALTER SAADManaging DirectorT: [email protected]

DREW FULLERDirectorT: [email protected]

SCHAFER SMARTTAnalystT: [email protected]

CATHY NABOURSManaging DirectorT: [email protected]

DOM ESPINOSAAnalystT: [email protected]

CHRIS MCCOLPINSenior DirectorT: [email protected]

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.

barton creek village · hills of southwest austin, texas. situated at the corner of barton creek...

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