View PDF Flyer
Las Cimas I 804 Las Cimas Parkway Arboretum Atrium 9737 Great Hills Trail Portfolio Overview THE OFFERING Transwestern has been exclusively retained by the Owner to offer to qualified investors an opportunity to purchase Las Cimas I and Arboretum Atrium in Austin, Texas. Las Cimas I and Arboretum Atrium represent two prominent stabilized Class A buildings located in the coveted Southwest and Northwest Austin submarkets. Individually, these buildings are highly sought after assets. Combined the portfolio provides the investor with a unique opportunity to acquire two outstanding office assets in the top two performing suburban submarkets in Central Texas at in-place rents demonstrably below market. The assets may be acquired separately or together. However, the buildings complement one another through the strength of the combined rent rolls as well as the investment diversification via their locations in separate submarkets. LAS CIMAS I SUMMARY Submarket: Southwest Classification: Class A Office Address: 804 Las Cimas Parkway Year Built: 1999 Total Rentable Area: 82,787 SF Parking Ratio: 4.1/1,000 Percent Occupied (as of 7/1/15): 100% (95.5%) Average In-Place Net Rents: $19.81 Market Rents: $25.00 NOI Year 1: $1,502,322 LAS CIMAS I INVESTMENT HIGHLIGHTS EXCEPTIONAL LOCATION Las Cimas Office Park is one of the most desirable and recognizable developments in the City of Austin. PREMIER SOUTHWEST AUSTIN SUBMARKET Las Cimas I presents a rare opportunity to acquire a Class A asset in the acclaimed Southwest submarket, the highest performing suburban market in Austin with Class A occupancy standing at 95%. SUBSTANTIAL RENTAL GROWTH Since 2010, rental rates have grown 22% in the Class A Southwest submarket; an average annual growth of 5.5%. STABLE OCCUPANCY Epicor, the primary tenant and its predecessors, has occupied the building since construction and have increased occupancy from 57,120 sf to 72,569 sf. They recently renewed through June 2022. PROMINENT CORPORATE NEIGHBORS The surrounding buildings are home to some of Austin’s most recognizable corporate neighbors such as Apple, St. Jude, Diversified Funds, Wilson Sonsini and Vitesse. WALKABLE AMENITIES Las Cimas I has easy access to many amenities with a Whole Foods Deli next door and The Village at Westlake across the street, offering a broad array of upscale dining and casual eateries along with numerous high-end retailers. CONTROLLED ACCESS Located at one of only a few traffic lights on Loop 360, allowing easy and safe ingress and egress. AFFLUENT ADDRESS The property is surrounded by the most affluent executive neighborhoods in Austin; West Lake Hills, Rollingwood, Davenport Ranch, Barton Creek & Lake Travis. Austin Country Club, Barton Creek Country Club, Lost Creek Country Club are all located within minutes of the building. ARBORETUM ATRIUM SUMMARY Submarket: Northwest Classification: Class A Office Address: 9737 Great Hills Trail Year Built/Renovated: 1984 / 2005 Total Rentable Area: 91,083 SF Parking Ratio: 3.43/1,000 Percent Occupied: 100% Average In-Place Net Rents: $16.88 Market Rents: $22.00 NOI Year 1: $1,467,693 ARBORETUM ATRIUM INVESTMENT HIGHLIGHTS ATTRACTIVE CORPORATE ENVIRONMENT The building has a uniquely beautiful interior presence created by the combination of the sky-lit atrium and three story window-wall. The natural light combines with the plush greenery and dual fountains to provide one of the most striking interior atrium spaces in the city. The Building was fully renovated in 2005 and 2008 with new insulated glass, roof, EMS, chillers and controls. ARBORETUM DISTRICT The Arboretum is the most established and well known mixed use development in Northwest Austin. The Arboretum includes high-end retail, hotel, multi-family and office in an ideal park-like setting. UNEQUALED WALKABLE AMENITIES The presence of walkable amenities is extremely rare outside of the CBD or The Domain. The Arboretum at Great Hills and The Arboretum Market both offer a multitude of retail, fine dining and casual food options within walking distance. The Renaissance Hotel across the street from the building is the highest rated full-service hotel in Northwest Austin. OUTSTANDING ACCESS Conveniently located at the confluence of three of the largest roadways in Austin; US 183, Loop 360 (Capital of Texas Highway) and Loop 1 (MoPac Expressway). This arterial combination provides ease of access to the affluent Northwest Hills, West Austin, Lakehills, Lake Travis and West Lake neighborhoods as well as to the bedroom communities of Cedar Park and Round Rock to the north. STABLE OCCUPANCY WITH UPSIDE The Investment touts stable occupancy (100%) yet also offers value enhancement through mark-to-market of the current tenants. In-place rates average $16.88 NNN and competing buildings are averaging over $22.00 NNN. DIVERSE TENANCY The building contains a balanced mix of small and large tenants. Many of the tenants have invested above allowance dollars to take advantage of the exposure through the central atrium space increasing the probability of their renewal. THRIVING NORTHWEST SUBMARKET Located in the acclaimed Northwest office submarket which currently stands at 91% occupancy. The Northwest market is home to many Fortune 500 companies including Apple, National Instruments, Visa, IBM, Cisco, Amazon and Charles Schwab. McN eil R 1 d Ln uR wo ssa ice Sp De od 183 .R d. Bra 2222 2 290 Blv d Ln Lam ar pw ron oPa Ro ad c Ex Ca me Emma Long g Metropolitan Me etropolitan Park e P NM Ca pit al of Tx Hw y iver oR rad Colo ker ARBORETUM ATRIUM NORTHWEST MARKET Rd oad er Sp 620 LAKEWAY L LAKE EWAY E erv PFLUGERVILLE rm FOUR POINTS S 685 ug ille Pa Lake Travis Pfl 1825 290 WEST LAKE WES WE E HI LS HI HILLS BEE CAVE L1 pe d rR no Mueller Ma La Wild Basin W illd Ba asin a sin i Wilderness Wi W iilderne ldern ness Park Park a lu ma 2244 Gu ad rB lvd St 360 Walter E. Long Lake University of Texas 183 State Capitol LAS CIMAS I Sou 969 CBD E. 7 th S thw est 71 Par kwa y OAK HILL ac 290 M SUNSET VALLEY llia mC 275 ann on Ben W hite B lvd 183 Bu rle so n El de rH ill Rd Wi 130 973 d S Gus F Fruh r Dist. Park D ark y 71 oP 1826 w rt Blv p Ex t Airpo SOUTHWEST MARKET 290 Zilker Park 45 Sla ugh ter Ln AustinBergstrom International Airport 71 Pe arc eL n AUSTIN MARKET In 4Q14, the Austin multi-tenant office market contains approximately 42.7M square feet of office space. The Central Business District makes up approximately 22% of the Austin total, and the suburban submarkets account for the rest. Austin’s multi-tenant office market recorded 1,158,340 square feet of positive absorption for the year, which is approximately 254,000 square feet more than the total of 904,306 year-to-date absorption at this same point in 4Q13. The net year-to-date absorption (excluding sublease) for 4Q14 was positive 1,291,146 square feet, compared to the 4Q13 net year-to-date absorption of positive 939,001 square feet one year ago. The current city-wide occupancy rate is 89.4%, up 0.8% from last quarter’s 88.6% in 3Q14 and up 1.5% from the year-ago total of 87.9% in 4Q13. Quoted rents for available Class A space averages $34.78 gross per square foot in 4Q14, up $1.11 from the 3Q14 quoted rate of $33.67 gross per square foot, and up $1.46 from the year-ago quote of $33.32 gross per square foot in 4Q13. SOUTHWEST MARKET The Southwest submarket contains approximately 9.4M square feet of multi-tenant office space. Due to limited supply, barriers to entry for new development and the proximity to executive housing, this submarket generally commands the highest rental rates outside of the Central Business District and the highest occupancy rate in the city. As of 4Q14, the Southwest submarket had 792,264 square feet of vacancy with an occupancy rate of 91.6%. This is an increase of 0.8% from 3Q14’s 90.8% occupancy. 4Q14 average quoted Class A rental rates in the Southwest submarket are $34.87 gross per square foot, a $3.49 per square foot increase from the $31.38 gross per square foot rate quoted last quarter, and a $2.37 increase from the $32.50 gross per square foot rate quoted one year ago in 4Q13. For Class A and B buildings, operating expenses average between $12.00 and $15.00 per square foot for the Southwest submarket. NORTHWEST MARKET The Northwest submarket totals approximately 12.7M square feet of space and is the largest submarket in Austin. As of 4Q14, the Northwest submarket had approximately 1.2M square feet of vacancy with an occupancy rate of 90.6%. This is unchanged from 3Q14’s 90.6% occupancy, and an increase of 1.0% from year-ago occupancy of 89.6% in 4Q13. The average rental rate for Class A space in this submarket is currently quoted as $30.83 gross per square foot, which is up $0.18 per foot from the $30.65 gross rate quoted in 3Q14 and up $3.50 from the year-ago quoted rate of $27.33 gross per square foot in 4Q13. For Class A and B buildings, operating expenses average from $12.00 to $15.00 per square foot. Arboretum Atrium 9737 Great Hills Trail Las Cimas I 804 Las Cimas Parkway HALE UMSTATTD Executive Managing Director 512.314.3551 [email protected] LEAH GALLAGHER Managing Director 512.314.3571 [email protected]
© Copyright 2024