one park ten - amazon s3...transwestern, as exclusive agent for owner, is pleased offer the...
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EXECUTIVE SUMMARY | 1
207 TRADEWINDS BLVD MIDLAND, TEXAS
VALUE-ADD INVESTMENT OPPORTUNITYFORMER REHABILITATION HOSPITAL
ASSET SUMMARYAddress: 6800 Park Ten Blvd, San Antonio, TX 78213
Size: ±155,923 SF
Leased as of May 1, 2019: 76.8%
Vacant SF: 36,244
Parking: ±3.53:1,000
Land Size: ±9.119 AC
Year Built: 1973/ 2001 & 2015
ONE PARK TENOFFICE PARK
VALUE-ADD INVESTMENT OPPORTUNITY
Transwestern, as exclusive agent for Owner, is pleased offer the opportunity to acquire One Park Ten, a 155,923 square foot office portfolio on 9.1 acres in San Antonio, Texas. The four-building portfolio is currently 76.8% leased, which provides substantial value enhancement opportunity through the lease-up of existing vacancy in a submarket with strong leasing demand for this product. Additionally, the portfolio offers incredible flexibility for future tenancy with many vacancies requiring little to no additional expense for new leasing, recent capital improvements, and a favorable parking ratio of 3.53/1,000. One Park Ten represents a compelling opportunity to acquire a unique combination of well-maintained, value-add office in a submarket experiencing strong net absorption.
■ NOI approximately $704,895 at 76.8% leased ■ Strong leasing velocity with flexible lease-up options ■ $1.3 million in recent CAPEX upgrades ■ Attainable at less than half of replacement cost ■ Strong Net Absorption of Class B product
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VALUE-ADD OPPORTUNITY OUTPERFORMS COMPETITIONAt 76.8% leased, One Park Ten offers a unique
opportunity for an investor to acquire a quality San Antonio asset with tremendous upside through the lease up of the existing vacancies. Average rental rates for leases signed in 2018/2019 are $20.16 FSG, versus the average in-place rent of $18.45 FSG.
STABLE, DIVERSE, TENURED TENANCYOne Park Ten is leased to a diverse group of quality tenants and the project has historically been well
occupied. With nearly all of the existing leases structured with annual rent bumps, investors will benefit from an increasing NOI. The tenant base has a substantial number of companies with long-tenured leases at One Park Ten; twelve tenants totaling 19% of the leased premises have been tenants at One Park Ten for over 10 years.
WELL MAINTAINED PROJECT One Park Ten benefits from cosmetic and infrastructure upgrades completed under the
current ownership. Recent capital improvements include four new chillers, a new energy management system and upgraded lobbies in the North and South buildings. The energy management system installation and chiller replacements at the East and South buildings have resulted in an 18% reduction in utilities as well as a 20% reduction projected for repairs and maintenance costs. One Park Ten has five suites in move-in ready condition and four others requiring only paint and carpet to lease. The opportunity exists to immediately improve cash flow with minimal capital expense.
EXCEPTIONAL WORKING ENVIRONMENT & AMENITIESThe attractive park-like office setting features
beautifully landscaped garden courtyards, improved grounds, inviting interior atriums with WiFi and collaborative seating areas, and water features which are rare amenities among competitive buildings. One Park Ten offers an on-site deli, tenant conference rooms, public areas with WiFi web access, key-fob access, on-site management and an on-site dedicated property engineer to quickly address tenant requests.
JOB GROWTH CONTINUESThe San Antonio MSA’s unemployment rate remained near a 13-year low at 3.2%, compared to
a national rate of 3.9%. Approximately 9,000 new jobs were created in 2018 in the San Antonio – New Braunfels MSA. Nearly 24,600 jobs have been created over the past 12 months. This compares to 21,300 jobs created in 2017.
ROBUST SAN ANTONIO ECONOMYTexas has outperformed the nation in nearly every business category since the recession, and San
Antonio is a standout. A tax friendly environment, limited regulations, low unemployment and an abundant work force all contribute to San Antonio’s favorable business climate.
#1 ranked city for population growth, US Census Bureau (May 2018)
#4 Metro for Best Salaries and Job Opportunities, Indeed (August 2018)
#19 Nation’s Best-Performing City for 2018, Milken Institute (January 2018)
#3 Large Metros with Fastest-Growing Gross Regional Product, Headlight Data (December 2017)
STRONG ECONOMY AND OFFICE MARKETInvestors are attracted to the Texas markets because of their strong economic fundamentals.
San Antonio’s growth ranks high among large Texas cities and has emerged as one of the best environments for business. Overall asking rates for the San Antonio Metro area increased by 2 basis points quarter-over-quarter to end 2018 at $25.28 psf full service, an increase of approximately 17.5% over the last 21 months. Net absorption in the fourth quarter was positive with a total of 310,955 square feet. The overall direct vacancy rate for San Antonio decreased 100 basis points in Q4 for a total of 13.6%.
INVESTMENT HIGHLIGHTS
EXECUTIVE SUMMARY | 3
EXECUTIVE SUMMARY | 3
south texas medical Center
FREDERICKSBURG RD
CALLAGHAN RD
VANCE JACKSON RD
WEST AVE
ONE PARK TEN
SAN ANTONIO, TX
LEASE ROLLOVER SCHEDULE
EXCELLENT LOCATION One Park Ten benefits from an ideal location along the IH-10 frontage road just south of Loop 410. The Interstate 10 address is a tremendous advantage in the market. Tenants prefer an IH-10 location, making this the fastest growing corridor in the city. With convenient entrance and exit ramps to IH-10 between Crossroads and Vance Jackson, the property offers multiple ingress and egress points to IH-10 and direct access to downtown.
SOUTH TEXAS MEDICAL CENTER The South Texas Medical Center is within three miles of the property with 58,000 plus medical professionals and medically related office employees in this district. The medical center consists of 9 hospitals, 2 psychiatric rehabilitation hospitals and numerous rehabilitation clinics, ambulatory surgery centers, clinical trial clinics, medical research and related facilities.
CALENDARYEAR
ENDING
EXPIRING SQ. FT.
% OF BUILDING
EXPIRINGRATE/SF
2019 16,944 10.9% $19.75
2020 14,041 9.0% $19.72
2021 21,707 13.9% $20.23
2022 16,745 10.7% $22.31
2023 10,017 6.4% $21.52
2024 8,895 5.7% $22.85
2025 - - -
2026 6,039 3.9% $22.46
2027 31,479 20.2% $21.10
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ALAN GRILLIETTESVP | SENIOR MANAGING DIRECTOR
CAPITAL MARKETS210.253.2943
MASON POLLARDASSOCIATE
LEAH GALLAGHERSENIOR VICE PRESIDENT - CITY LEADER
EXCLUSIVE ADVISOR
8200 IH-10 West Suite 800
San Antonio, Texas 78230
T 210.341.1344 F 210.377.2797
www.transwestern.com
SAN ANTONIO TRENDLINES
5-YEAR TREND CURRENT QUARTER
DIREC T VAC A NC Y
13.6%Compared to 14.2% five-year average
RE NTA L R ATE
$25.28psf(FSG) Increase of 23.4% since 2015
A BSORP TION
310,988sf586,199 SF Rolling 12-month total
U N DE R CONS TRUC TION
1.3msf51.5% pre-leased; $45.09 PSF (FSG)
JOB G ROW TH
9,000 jobsGained YTD; 3.2% unemployment
SAN ANTONIO MARKET9,000
Total jobs added in 2018
3.2%San Antonio MSA
Unemployment Rate (National average = 3.9%)
#1#1 ranked city for
population growth