beltway antoine business center
TRANSCRIPT
Beltway antoine Business center3403-3463 N. Sam HouStoN Parkway • HouStoN, texaS
OFFERING SUMMARY
The Investment Sales Group of HFF is pleased to offer for sale the ownership’s 100% fee simple interest
in Beltway Antoine Business Center (“Beltway Antoine”), a 383,100 square foot Class A, institutional-
quality industrial park built in two phases in 2007 and 2008 and currently 95.2% leased to 17 tenants.
Beltway Antoine is located along the Sam Houston Parkway (Beltway 8) at Antoine Drive within
Houston’s north industrial submarket, one of the premier submarkets that is home to an impressive list
of corporate users.
I n v e s t m e n t H I g H l I g H t s
new, Highly Functional Product
Developed in 2007 and 2008 by Mountain West Industrial Properties, Beltway Antoine is one of the
premier industrial projects in north Houston. Five of the seven buildings offer 24’ clear height, one is
20’ and the other is 30’, supporting tenant sizes of 5,000 to 50,000 square feet in the market. The entire
project was built with dock-high loading and drive-in ramps, with the five buildings fronting Beltway 8
being rear-load and two buildings at the rear being front-load. All truck courts are 120’ or larger to allow
for easy loading/unloading and all buildings are ESFR sprinklered. In addition, the project offers various
building depths to accommodate a wide range of tenants. All of these characteristics have allowed
Beltway Antoine to compete effectively for tenants and position it to maintain its status as one of north
Houston’s premier industrial projects well into the future.
Beltway location
Beltway Antoine is situated along Beltway 8 at the Antoine toll booth, one of the most visible locations
along the Beltway in north Houston. Numerous tenants desire signage and visibility from the more
than 125,000 cars traveling this major thoroughfare daily, one of the primary reasons that the project
has been successful in its lease up. This location offers some of the best ingress/egress available, as
there is an entrance ramp to Beltway 8 going east directly in front of the project and an exit at Antoine
from Beltway 8 in both directions. Beltway 8 connects to all major freeways within the city of Houston,
offering tremendous accessibility for tenants located within Beltway Antoine. Another tremendous
advantage is the fact that there are only a few sites with Beltway 8 frontage stretching from where it
intersects Highway 59 in northwest Houston to where it intersects Highway 59 in southwest Houston
where industrial development is a possibility. This is primarily due to the rise in land prices along
Beltway 8, with most remaining sites being held for other commercial uses.
stability of Cash Flow
Beltway Antoine offers an investor tremendous cash flow stability, as the project is 95.2% leased to a
diverse tenant base consisting of 17 tenants possessing an average remaining lease term of 5.3 years.
There is minimal near-term rollover, with only 8% of the space expiring between 2011 and 2013. In
addition, the project enjoys a rent roll with a strong credit profile, as 42% of the NRA is leased to tenants
with investment-grade credit ratings.
Contractual Rent growth Combined with tremendous Upside Potential
Every tenant within the project has contractual rent increases, providing an owner with substantial NOI
growth over the hold period. In addition to this contractual growth, there will be the opportunity to roll
leases to substantially higher rents when they expire, as the current owner/developer was aggressive in
securing tenants in the past few years in order to achieve its lease-up projections. With vacancies filling
up at a rapid pace, most publications and leasing specialists project rental rates to increase at a steady
clip over the next few years. Property & Portfolio Resarch (PPR) projects rents to increase 3.2% in 2011,
4.7% in 2012, 3.5% in 2013, and 1.9% in 2014 within the North industrial submarket.
Houston Industrial market strength
Possessing just over 301 million square feet of inventory, the Houston industrial market experienced a
robust 2010, with over 4.3 million square feet of absorption throughout the year. This momentum has
carried into 2011, with a number of large lease deals currently being negotiated. Incredibly there is only
225,000 square feet of new construction currently taking place, near an all-time low. As a result, the
overall market’s 91.1% occupancy rate is projected to climb steadily over the next few years as demand
outpaces supply. The North industrial submarket contains approximately 45 million square feet of space
and is currently 91.4% leased. It contributed 1.2 million square feet of absorption to the overall market’s
total in 2010 and has the second highest overall rents in the city, trailing on the Southwest submarket,
which has a bigger flex/manufacturing component than the North market. The North industrial market
is one of Houston’s preferred submarkets due to its central location, accessibility, proximity to George
Bush Intercontinental Airport, and strong oil and gas base.
Resilient Houston economy
While long considered a detriment, Houston’s ties to the energy industry allows it to be one of the
last markets to experience the effects of the national recession and is also allowing it to be one of the
leaders as the nation emerges from the recession. In 2010 the city added a remarkable 56,600 jobs
according to the Bureau of Labor & Statistics, which put Houston number one in the nation in terms of
percentage growth among the major MSA’s. Moody’s Analytics also projects Houston to lead the nation
in population growth between 2009 and 2014 and rank second in job growth behind New York City. As
Houston continues to add jobs at a rapid pace, industrial tenant demand will continue to grow allowing
existing industrial owners to take advantage of improving market fundamentals.
Investment Highlights
W W W. H F F L P. C O MB e lt w ay a n t o I n e B U s I n e s s C e n t e R
Property Overview
W W W. H F F L P. C O M
PRoPeRty sUmmaRy
Project size: 3403-3463 N. Sam Houston Parkway, Houston, Texas 77086
number of Buildings: Seven (7)
Configuration: Two dock-high front load buildings in the rear, with five dock-high rear load buildings fronting Beltway 8
nRa: 383,100 square feet
occupancy: 95.2%
number of tenants: 17
Clear Height: 20’-30’
% of office space: 33%
year Built: Phase I (3 bldgs.) – 2007; Phase II (4 bldgs.) - 2008
sprinklered: ESFR System
loCatIon maP
AN
TO
INE
DR
IVED E T E N T I O N P O N D
AN
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OU
ISE
ST
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ET
N O R T H S A M H O U S T O N PA R K W AY W E S T
395’ 85’ 355’110’ 640’ 110’
160’
320’440’
330’ 68’6” 210’
135’
135’
149’
149’
190’
130’
137’
6”120’
190’
150’14
0’
site Plan
B e lt w ay a n t o I n e B U s I n e s s C e n t e R
LakeHouston
San Jacinto
Bay
SheldonReservoir
GalvestonBay
SmithersLake
ClearLake
George BushPark
LakeHouston
State Park
ArmandBayouPark
WilliamP. HobbyAirport
George BushIntercontinentalAirport
HARRISCOUNTY
LIBERTYCOUNTY
FORT BENDCOUNTY
MONTGOMERYCOUNTY
BRAZORIACOUNTY
GALVESTONCOUNTY
Downtown Galleria
TexasMedical Center
Ben
d
Beltway AntoineBusiness Center
Contact Information
IH-45IH-45
SAM HOUSTON TOLLWAY
GEORGE BUSHINTERCONTINENTAL AIRPORT
GEORGE BUSHINTERCONTINENTAL AIRPORT
GREENSPOINTGREENSPOINT
Beltway AntoineBusiness Center
SAM HOUSTON TOLLWAY
ANTOINE DRIVE
ANTOINE DRIVE
VETERANS MEMORIAL DRIVEVETERANS MEMORIAL DRIVE
45
ANN LOUISE ROADANN LOUISE ROAD
RUsty tamlyn, CCIm, sIoR
Senior Managing Director
Phone (713) 852-3561
tRent agnew
Associate Director
Phone (713) 852-3431
© 2011 HFF (NYSE: HF) operates out of 17 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry. HFF offers clients a fully integrated national capital markets platform including debt placement, investment sales, structured finance, private equity, note sales and note sale advisory services and commercial loan servicing.
HFF has been engaged by the owner of the property [properties] to market it [them] for sale. Information concerning the property [properties] described herein has been obtained from sources other than HFF and we make no representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all references 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 buyer. Buyers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change.
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