fort worth, tx 76104 321 e. broadway ave katy depotimages2.loopnet.com/d2/8...due to its novel...

321 E. Broadway AveFort Worth, TX 76104 Katy Depot

The OpportunityYou are invited to view this redevelopment opportunity in Fort Worth’s rapidly growing ‘Near Southside.’ The Katy Depot was first designed and constructed as a freight depot in 1909 for the MKT railroad headquarters out of Junction City, KS. It is located 2 blocks from the new South Main Corridor and directly across the street from the Bowery at Southside, which is under construction and set for delivery in Spring of 2019. Nearby employers are Cook Children’s Healthcare System, Texas Health Resources, Medical City Healthcare and the Williamson-Dickie Headquarters. This group of employers account for 40,000 day time jobs within the ‘Near Southside.’ The immediate area surrounding the Katy Depot is characterized by unique and authentic bars, breweries, restaurants, and live music venues.

The property contains a historic brick shell building on 1.791 acres with extensive road frontage on Vickery and Broadway. Zoning permits a variety of office, retail and multi-family use up to ten stories. The property is eligible for historic status. Due to the historic nature of the property, redevelopment utilizing federal and historic tax credits would offset approximately 45% of the renovation cost making redevelopment very cost effective. If historic status is obtained, it would permit the buyer to request a 10 year city tax exemption. The exemption would freeze the property tax assessment at current assessment levels before renovation is complete, helping lower operating expenses for the developer and tenant base.

OPPORTUNITY HIGHLIGHTS

Tax Credits offset up to 45% of renovation cost

10 year tax savings and faster lease up

Capitalize on submarketsynergy and

development

23,418Building Size (SF)

1909, 1950Year Built, Expansion

Mixed-UseFuture Land Use

3,400Patio Area (SF)

Property Summary

NS-T5I(Near Southside)

Zoning

1.791 AcresLand Size

Property Address 321 E. Broadway Avenue, Fort Worth, TX 76104 (NW Corner of E. Broadway Ave & Jones St)

Property Type: Historic Shell (not yet designated) | Size Note: Building square footage does not include patio.

N

PATIO WAREHOUSETWO-STORY

Katy Depot

3 | Katy Depot - Fort Worth, Texas

Site Plan

*JLL makes no representation of measurement accuracy

42.5’

100’351’80’

50.5’TO FENCE

TWO STORY8,500 SF

10’OVERHANG

WAREHOUSE14,918 SF

PATIO3,400 SF

10’OVERHANG


Property Photos


The Katy (Missouri-Kansas-Texas) Railroad built the first portion of the Katy Freight Depot in 1909. The depot consisted of a two-story brick office-warehouse connected to freight rooms and loading docks. The rail lines that run parallel to the building near Jones Street were laid the same year. Due to its novel fireproof design, the warehouse was the only structure to survive a disastrous fire in the district on April 3, 1909.

In 1923 the south portion of the two-story section was enlarged and the one-story freight house was improved with cantilevered concrete canopies. Sumner-Sollit Company performed the construction. Butcher & Sweeney Construction Company extended the freight rooms and canopies farther south in 1953.

Katy Depot History


Near Southside Rents

APARTMENT RENT FOR NEWLY CONSTRUCTED UNITS ARE TYPICALLY IN THE

$1.78/SF/MO RANGE PER APARTMENTS.COM.

OFFICE RENT FOR NEW CONSTRUCTION IN THE AREA IS TYPICALLY IN THE

$22/SF/YR/NNN RANGE PER COSTAR.

THE IMMEDIATE AREA HAS BEEN UNDERGOING SIGNIFICANT DEVELOPMENT AND REDEVELOP-MENT OVER THE PAST DECADE. LAND PRICES IN THE AREA TYPICALLY RANGE FROM

PER SQUARE FOOT.$40-$50

Apartment Office

Land

CURRENT VACANCY IS AT

16.4% FOR CLASS A AND B PRODUCT PER COSTAR.

VACANCY RATES ARE AT

5.8% PER COSTAR.


MULTIFAMILY DEVELOPMENTThis new 303 unit, four story development broke ground in late 2018. It will contain 292 apartment units and 16 townhomes. The apartments will consist of efficiencies, one and two-bedroom units. Sizes range from 500 to 1,200 SF with an average of 820 SF per unit. Targeted rents are $1.90/SF/MO overall. The townhomes will be two bedrooms with 2.5 baths with direct garages. Project construction is expected to be complete in late spring or summer 2019.

The community will feature a large courtyard, resort-style pool, outdoor kitchen and lounge area. There will be a two-story fitness center, luxurious clubhouse with its own kitchen, conference room, and rooftop lounge.

The Bowery at Southside

THE BOWERY AT SOUTHSIDE

NEW COMMUNITYDOG PARK

CRAWFORD ST EXTENSION AND PUBLIC PARK

Katy Depot


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West Fwy

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E Allen Ave

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8th Ave

W Rosedale St

N Main St

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E Lancaster Ave

E Hattie St

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Houston St

Martin l King Jr Fwy

Hemphill St

New Hemphill

Connector

Texas HealthHarris Methodist

Cook Children’sMedical Center

Medical CityFort Worth

John Peter Smith Hospital





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PROPERTY UNIT TYPE $/MO APT SF $/SF/MO $/SF/YR

1 Highpoint Urban Living 1BR/1BA $1,350 631 $2.14 $25.67

2 Mag & May 1BR/1BA $1,410 720 $1.96 $23.50

3 Monarch Medical Dist. 1BR/1BA $1,375 700 $1.96 $23.57

4 South 400 1BR/1BA $1,350 730 $1.85 $22.19

5 The Phoenix 1BR/1BA $1,200 694 $1.73 $20.75

1BR/1BA Average $1.93 $23.14

PROPERTY UNIT TYPE $/MO APT SF $/SF/MO $/SF/YR

2 Mag & May 2BR/2BA $2,010 1,082 $1.86 $22.29

3 Monarch Medical Dist. 2BR/2BA $2,010 1,130 $1.78 $21.35

5 The Phoenix 2BR/2BA $1,800 1,121 $1.61 $19.27

4 South 400 2BR/2BA $1,725 1,085 $1.59 $19.08

1 Highpoint Urban Living 2BR/2BA $1,465 1,068 $1.37 $16.46

2BR/2BA Average $1.64 $20.50

COMBINED AVERAGE $1.78 $21.21

Apartment Rents

LOCATION OPEX S/SF/YR APT SF

1 410-420 S Henderson NNN $24.00 Ofc/Med

2 601-615 S Main St NNN $23.00 Ofc/MU

3 804 S Main St NNN $22.00 Ofc/MU

4 1200 W Magnolia Ave NNN $21.00 Office

5 1300 W Rosedale NNN $20.00 Medical

Average $22.00

Office Rents

Area rents and construction costs indicate that the subject property provides a great, financially rewarding opportunity for the tax credit developer.

Katy Depot

Near Southside Rents


DEMOGRAPHICS 1 MILE 2 MILES 5 MILEPopulation 8,831 86,888 285,739

2018 Total Daytime Population 38,709 189,132 363,938

Workers 32,071 138,414 193,938

Residents 6,638 50,718 169,501

White Collar Jobs 53% 52% 46%

Blue Collar Jobs 18% 28% 34%

Service Jobs 30% 21% 21%

Households 3,623 31,172 93,617

Average HH Income $54,731 $62,240 $62,237

2018 Median Age 33.5 33.1 31.5

2018 Renter Occupied Housing Units 70% 50% 45%

2018-2023 Annual Pop. Growth 2.04% 2.36% 1.44%

Demographics

The area has strong employment, particularly in the healthcare industry. It is characterized by white collar jobs, a high renter population and strong population growth.

Fort WorthCBD

NearSouthside

District

30

35

Trinity River

Fort WorthConvention

Center

Katy Depot

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Amtrak-FortWorth

Tre-Ft WorthItc Station

Tre-Texas andPacific Station

Fort Worth

199

280

30

35

287

287

TrinityPark

Harmon FieldPark

ForestPark

FarringtonField

Purple H eart Trl

Chisholm

Trail

Pkwy

Ctp

Martin l King Jr Fwy East Fwy

West Fwy

W Belknap StE Weatherfo

rd St

E Belknap St

N

Henderson St

Hend

erso

n St

S Henderson St

E Allen Ave

S Univ ersi ty Dr

West Fwy

Hem

p hill

St

Sou th F wy

W Allen Ave

8th Ave

W Rosedale St

N Main St

Sout

h Fw

y

E Maddox Ave

E Lancaster Ave

E Vickery Blvd

S Ri

v ers

i de

Dr

E Rosedale St

West Fwy

Summ

it Ave

University Dr

Univ

ersi

t y D

r

W Lancaster Ave

W 7th St

N Fo

rest P

ark B

lvdRiversi de Dr

S Sylvania Ave

W Lancaster Ave

W 7th St

Macon St

Cher

r y S

t

W 6th St

Houston St

Martin l King Jr Fwy

Hemphill St

E Pennsylvania AveE Pennsylvania Ave

South Main St

South Ma in St

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Nearby Amenities

1 Shipping & Receiving2 Fort Worth Water Gardens3 The Collective Brewing Project4 Amphibian Stage Production5 HopFusion Ale Works6 Alchemy Pops7 District Barbershop8 Rahr & Sons Brewing9 Tinie’s Mexican

10 W Durable Goods11 Cannon Chinese Kitchen12 Jesus BBQ13 Walls Outdoor Goods14 Chick-fil-A15 Starbucks16 Smoothie King17 QuikTrip18 Wells Fargo19 Funky Picnic Brewery & Café20 Impressive Fitness21 Southside Bank22 Magnolia Green Park23 Grainger24 Dickies Headquarters25 Justin Brands26 Dannon27 Locust Cider28 Morrison Supply29 Tarrant County Medical Society30 Supreme Golf31 UT Southwestern32 Texas Health Hospital33 Cook Children’s Medical Center34 Medical City35 Texas Rehabilitation Hospital36 Downtown Health & Rehab37 Cook Children’s Home Health38 Baylor Surgery Center39 Texas Oncology40 LabCorp41 The Phoenix Apartments42 Bowery at Southside43 Monarch Medical Apartments44 South 40045 Highpoint Urban Living46 Oak Timber Apartment47 Alexan Summit

Area Amenities

Katy Depot


HISTORIC COMMERCIALHistoric buildings are finding new life in the hands of developers and business owners who prioritize preserving the heritage of the district. Redevelopment produces unique urban villages integrating both old and new.

At the corner of Broadway and Bryan Avenue is HopFusion Ale Works, an inviting neighborhood gathering spot. Owner Jesse Stamper purchased this 10,500 square foot property in a neglected state but had great vision for the space. Collective Brewing Project opened their brewery and taproom in another historic building on St. Louis Avenue in 2014 after a renovation that preserved the original character.

Near Southside Overview

BRIK, a two-story event space at the corner of Calhoun and Tucker, maintains the charming characteristics of the former textile mill including an old textile scale. In 2017, The 4 Eleven transformed a 1920s warehouse and three other historic buildings into four retail storefronts, a special event space, and a courtyard. The OB Macaroni Building was rehabbed by M2G Ventures to convert a former stagecoach hotel and pasta factory into spaces for local manufacturers, including a retail location for W Durable Goods, production facility for Melt Ice Creams, and roasting factory for Craftwork Coffee.

Developer Dak Hatfield followed up converting a historic warehouse at 916 Bryan into office spaces with Pouring Glory at Dashwood and Bryan. A restored façade and tasty menu created a pioneering destination just north of Rosedale.


ART & CULTURAL CENTERFor years, the Near Southside has been a haven for artists, musicians, and creative agencies. The area’s artistic identity has continued to grow with festivals, art displays, performance venues, studios, and community events. Over the past 15 years, ArtsGoggle has evolved into a popular annual arts festival as Magnolia Avenue closes for a weekend and showcases outdoor art, live music, and food, drawing more than 30,000 people. Magnolia Green is host to ongoing performances throughout the year, including the Friday on the Green and Broadway Off Broadway concert series. Local venues such as Shipping & Receiving, Twilite Lounge, MASS Main, and Rahr & Sons regularly host live music, while Amphibian Stage Productions offers a unique slate of independent plays and performances.

FORT WORTH MEDICAL DISTRICT The Near Southside’s Medical District dominates Fort Worth’s healthcare industry. Its hospital institutions include Texas Health Harris Methodist, Cook Children’s, Baylor Scott & White All Saints, JPS public hospital, Medical City Fort Worth, UT Southwestern Moncrief Cancer, and Moncrief Medical Center. Hundreds of independent clinics also surround the hospitals, bringing another 8,000 jobs to the area by themselves.

Fort Worth Districts

Cook Children’s Medical Center


Moncreif Cancer Institute

THR Harris Methodist

Medical City Fort Worth

Baylor Scott & White Medical Center

Baylor Surgical Hospital

UT Southwestern

MAGNOLIA GREEN

RAHR & SONS

SHIPPING & RECEIVING


COMPARISON OF FEDERAL AND STATE HISTORIC TAX CREDIT PROGRAMS

Federal Historic Preservation Tax Incentives Program Federal Income Tax 20% of qualified expenditures Current owner(s)

Individuals, companies, partnerships

Income-producing only

National Register (individual or

district)

Texas Historic Preservation Tax Credit Program Texas Franchise Tax or Texas Insurance Premium Tax25% of qualified expenditures*

Current owner(s) May transfer whole or partial credit to others Individuals, companies, partnerships and nonprofits

Income-producing, nonprofit, or public university systems

National Register (individual or district), Recorded Texas Historic Landmark, or State Antiquities Landmark Required when credit is claimed

Credit applies to: Percent credit offered: Credit recipient:

Eligible applicants:

Eligible building uses: Required historic designation:

Minimum project: $5,000/value of building (whichever is greater) $5,000 Application structure: 3-part Federal application (1, 2, 3)

Recapture period: 5 years

Time limit for use of credits: 20 yearsArchitectural oversight:

Financial oversight: Application deadline:

National Park Service (NPS) certifieswith THC’s recommendation

Credit managed by IRS

Must apply before projectcompletion

3-part application that mirrors Federal (A, B, C)

No recapture period

5 yearsTexas Historical Commission (THC) certifies projects NPS reviews first if applying for Federal and State Credit managed by Texas Comptroller

Projects completed between September 1, 2013 and January 1, 2015 may apply after project completion; all others must apply before project completion

*Federal and State programs use the same definition for Qualified Rehabilitation Expenditures.*Historic status typically takes about three months per City of Fort Worth


201 Main Street, Suite 500 | Fort Worth, TX

Ryan MatthewsExecutive Vice President

+1 817 334 [email protected]

Joel H St. John, MAI, CCIMVice President

+1 817 334 [email protected]

Disclaimer©2019 Jones Lang LaSalle, IP, Inc. All rights reserved. This Brochure is provided for the sole purpose of allowing a potential investor to evaluate whether there is interest in proceeding with further discussions regarding a possible purchase of or investment in the subject property (the “Property”).

The potential investor is urged to perform its own examination and inspection of the Property and information relating to same, and shall rely solely on such examination and investigation and not on this Brochure or any materials, statements or information contained herein or otherwise provided.

Neither JLL nor any of its partners, directors, officers, employees and agents (“Sales Agent”), nor the owner, its partners or property manager, make any representations or warranties, whether expressed, by operation of law or otherwise, with respect to this Brochure or the Property or any materials, statements (including financial statements and projections) or information contained herein or relating thereto, or as to the accuracy or completeness of such materials, statements or information, or as to the condition, quality or fitness of the Property, or assumes any responsibility with respect thereto. Such materials, statements and information have in many circumstances been obtained from outside sources, and have not been tested or verified. Projections, in particular, are based on various assumptions and subjective determinations as to which no guaranty or assurance can be given. This Brochure is provided subject to errors, omissions, prior sale or lease, change of price or terms and other changes to the materials, statements and information contained herein or relating to the Property, and is subject to withdrawal, all without notice. The contents hereof are confidential and are not to be reproduced or distributed to any person or entity without the prior written consent of Agents and Owner or used for any purpose other than initial evaluation as indicated above.

Katy Depot

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