brookhollow broohollow
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BROOKHOLLOWC E N T R A L
H O U S T O N , T E X A S • E X E C U T I V E S U M M A R Y
BROOKHOLLOWC E N T R A L
Holliday Fenoglio Fowler, L.P. acting by and through Holliday GP Corp a Texas licensed real
estate broker ("HFF").
The Opportunity
HFF, as the exclusive representative of the owner, is pleased to offer for sale Brookhollow Central I, II, and III (the “Property”), a three-building, 806,541 square foot
office portfolio located in Houston’s North Loop submarket, just north of the Galleria. Situated on approximately 10 acres, the Property is currently 71% leased, but
will be moving to 38% in July 2018 as Comerica vacates the Property. With exceptional access and visibility to two of Houston’s busiest freeways (US Highway 290
and Interstate 610), Brookhollow Central provides investors near-term opportunity to lease up vacancy and reposition the Class A project.
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Investment Highlights
PREMIER ASSETSBrookhollow Central I, II & III are highly visible, iconic assets located in an increasingly desirable location that is benefiting from major infrastructure improvements. The assets have been institutionally owned and maintained with significant non-leasing capital invested in building systems and extensive renovations to maintain the project’s position at the top of the submarket. The curtain wall and roof of Brookhollow I were replaced in 2008 and approximately $14 million was invested in 2014 to fully renovate and redesign the lobby, common areas and restrooms, and upgrade all building systems including a new chiller, fully-modernized elevators, life safety system and HVAC equipment. Brookhollow II & III were also upgraded in recent years, but further opportunity remains for aesthetic improvements. Brookhollow Central boasts excellent on-site amenities including an auditorium-style conference facility, sundry shop, fitness center, bank and deli.
EXCEPTIONAL VISIBILITYBrookhollow Central is prominently located at the intersection of Interstate 610 and US Highway 290, just a few miles north of Houston’s Galleria submarket. Each day, over 250,000 cars traverse Interstate 610 and/or US Highway 290 adjacent to Brookhollow Central. New ownership will have the ability to offer top-of-building signage, a major driver for large tenants looking for excellent signage exposure.
IRREPLACEABLE LOCATIONThe Property is located just north of some of the most affluent neighborhoods Houston has to offer including River Oaks, Tanglewood and the Memorial Villages. In addition, the surrounding neighborhoods to the north, east and southeast including Oak Forest/Garden Oaks, Lazybrook/Timergrove, and the Heights are experiencing exceptional growth in both household income and housing values. Residents within a three mile radius have an average household income of $113,000. Additionally, Brookhollow Central is just a few miles from, and has direct freeway access to the Galleria Mall, Houston’s foremost shopping destination with over 400 stores and restaurants.
US HIGHWAY 290 EXPANSION/REDEVELOPMENTBeginning Summer 2011, construction on US Highway 290 between Interstate 610 and the Harris County line commenced to improve traffic flow along this increasingly traversed artery. The project, which includes a complete overhaul to the US Highway 290/Interstate 610/Interstate 10 interchanges and 38 miles of US 290, is a much needed infrastructure improvement for the city. Tenants and visitors of Brookhollow Central will are the beneficiaries of this multi-stage program that will improve traffic flow and safety in each direction through the interchange area on I-610, I-10, US 290, as well as decrease congestion through the US 290 corridor. Construction closest to Brookhollow Central which include U-turns, direct connectors/flyovers allowing the free flow from US 290 to I-610, US 290 to I-10 and I-10 to I-610, in all directions is complete. The remaining work, located to the northwest on US 290, is slated to be completed in 2018.
B R O O K H O L L O W C E N T R A L
Building BHC I BHC II BHC III Total
Address 2800 N. Loop West 2900 N. Loop West 2950 N. Loop West
Building Size 201,349 SF 304,576 SF 300,616 SF 806,541 SF
Floors 12 14 + LL 12 + LL
Year Built /Ren. 1972 / 2014 1977 1981
% Leased 68.7% 19.7% 36.1% 38.0%
WALT 7.7 Years 5.3 Years 4.6 Years 6.2 Years
Avg. NNN Rent $15.82 $16.10 $15.72 $15.82
Parking Ratio 3.24 3.58 3.77 3.57
PROPERTY SUMMARY AS OF JULY 2018
CAPITAL PROJECTS SUMMARY SINCE 2012
BHC I $13,869,232
BHC II $1,067,817
BHC III $2,053,133
Total Project Costs $16,990,182
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VALUE-ADD OPPORTUNITYAt 38.0% leased (excluding GulfQuest & Comerica and including Cigna) in July 2018, Brookhollow Central provides significant opportunity to increase value through lease up of the vacant space. As most expenses are fixed, additional occupancy will provide substantial NOI growth while only causing marginal expense growth. Additionally, capital improvements to Buildings II & III will allow for increased rents and bring them to the Class-AA quality of Building I.
DISCOUNT TO REPLACEMENT COST Brookhollow Central I, II, & III present the opportunity to acquire 806,541 SF of office space in a premier infill location at a significant discount to replacement cost. It is estimated that current replacement cost for this property is $300 - $400 per square foot.
IMPROVING HOUSTON ECONOMYHouston has experienced robust population, employment, and overall economic growth. The city added approximately 56,100 jobs in the 12 months trailing June 2017 and 125,005 new residents from July 2015 to July 2016 (2nd in the nation). Additionally, since December 2016, the Houston Business Cycle Index grew an annualized 3.3%, suggesting an exit from the oil setbacks and growth in the future. Additional metrics supporting the growth in Houston include:• #1 population growth among U.S metros since 2010• #1 GDP per capita in the world• #1 job growth among U.S. metros since 2006• #3 among U.S. cities with 46 Fortune 1000 headquarters• 16,409 multi-family units absorbed in the last 12 months• $235,000 median home value as of May 2017, brought on by record setting single-family
residential sales.
Investment Highlights
DIRECTORS ROWDIRECTORS ROW
THE GALLERIATHE GALLERIAGREENWAY PLAZAGREENWAY PLAZA
TEXAS MEDICAL CENTERTEXAS MEDICAL CENTER
RIVER OAKSRIVER OAKS
SHERATONHOUSTON
BROOKHOLLOW
SHERATONHOUSTON
BROOKHOLLOW
HISDHISD
LAZYBROOK / TIMBERGROVELAZYBROOK / TIMBERGROVE
GREATER HEIGHTSGREATER HEIGHTS
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DIRECTORS ROWDIRECTORS ROW
THE GALLERIATHE GALLERIAGREENWAY PLAZAGREENWAY PLAZA
TEXAS MEDICAL CENTERTEXAS MEDICAL CENTER
RIVER OAKSRIVER OAKS
SHERATONHOUSTON
BROOKHOLLOW
SHERATONHOUSTON
BROOKHOLLOW
HISDHISD
LAZYBROOK / TIMBERGROVELAZYBROOK / TIMBERGROVE
GREATER HEIGHTSGREATER HEIGHTS
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Highway 290 / Interstate 610 Construction Project
Since summer 2011, construction on US Highway 290 between Interstate 610 and the Harris County line has been ongoing in some capacity. The project, which includes a complete overhaul to the US Highway 290/Interstate 610/Interstate 10 interchanges and 38 miles of US 290, is a much needed infrastructure improvement for the city but ongoing construction has negatively impacted building owners and businesses located near the work. Since the project’s inception, the scope of work has changed several times and work has been delayed due to weather and other complications. With many sections of the plan now nearing full completion, the project is scheduled to be officially complete in 2018.
Tenants and visitors of Brookhollow Central will be the beneficiaries of this multi-stage program that will improve traffic flow and safety in each direction through the interchange area on I-610, I-10 and US 290, as well as decrease congestion through the US 290 corridor.
Once complete, the full program will include the following:
• Five US 290 main lanes in both directions from I-610 to SH 6/FM 1960
• Four US 290 mainlines in both directions from SH 6/FM 1960 to SH 99
• Three US 290 main lines in both directions from SH 99 to FM 2920 near the Harris/Waller County line
• US 290 will also have one reversible high occupancy vehicle lane between I-610 and SH 99, with inside/outside shoulders
• Direct connectors/flyovers allowing free flow of traffic from US 290 to I-610, US 290 to I-10 and I-10 to I-610, in all directions (95% complete)
FEBRUARY 2010
JANUARY 2017
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DIR
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THE GALLERIATHE GALLERIA
TANGLEWOODTANGLEWOOD
MEMORIAL VILLAGESMEMORIAL VILLAGES
SPRING BRANCHSPRING BRANCH
SHERATONHOUSTON
BROOKHOLLOW
SHERATONHOUSTON
BROOKHOLLOW
HISDHISD
W GOVERNORS CIRCLE
W GOVERNORS CIRCLE
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N . L O O P W . F E E D E R R O A D
I N T E R S T A T E 6 1 0 | N O R T H L O O P F R E E W A Y
G O V E R N O R S C I R C L E
P A R K I N G G A R A G E1,015 Spaces
P A R K I N G G A R A G E654 Spaces
P A R K I N G G A R A G E1,213 Spaces
B H C I I IB H C I I
B H C I
Site Plan
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LakeHouston
San Jacinto
Bay
SheldonReservoir
GalvestonBay
BayportTerminal
Barbour’s CutTerminal
SmithersLake
ClearLake
George BushPark
LakeHouston
State Park
ArmandBayouPark
WilliamP. HobbyAirport
George BushIntercontinentalAirport
HARRISCOUNTY
LIBERTYCOUNTY
FORT BENDCOUNTY
MONTGOMERYCOUNTY
BRAZORIACOUNTY
GALVESTONCOUNTY
Downtown
EnergyCorridor
The GalleriaWestchase
Greenspoint
The Woodlands
TexasMedical Center
69
69
69
Westpark Tollway
Katy Frwy
Southwest F
rwy
Northwest Frwy
North Frwy
Hardy Toll RoadEa
stex
Frw
y
North Loop
LoopSouth
Wes
t Loo
p
East
Loo
p
Sam Houston Tollway
Sam Houston Pkwy
ExxonMobilCorporate Headquarters
Pasadena Frwy
Baytown East Frwy
Sout
h Fr
wy
Fort
Pkwy
Gulf Frwy
Proposed
GrandPkwy
Proposed Grand Pkwy
Westheimer Rd
Beaumont Hwy
Ben
d
Grand Pkwy
BROOKHOLLOW CENTRAL
Hempstead HighwayN
orth Post Oak R
oad
Old Katy Road
Westview Drive
Dacoma Street
West 11th Street
West 18th StreetLong Point Road
Silber Road
Antoine Drive
Ella Boulevard
NorthwestMall
White Oak Bayou
West TC Jester Boulevard
610
610
Directors Row
BROOKHOLLOW CENTRAL
Woodway DriveChim
ney Rock R
oad
Sage Road
San Felipe Street
South Post Oak Lane
Memorial Drive
Willo
wick
Roa
d
Post
Oak
Bou
leva
rd
Memorial Park
Memorial Park
Buffalo B
ayou
21
6 7
45
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Location Maps
PRO
PERTY
OV
ERVIEW
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CONTACT INFORMATION
H. DAN MILLER, CCIM, SIORSenior Managing DirectorT. [email protected]
MARTIN T. HOGANSenior DirectorT. [email protected]
SHERRI ROLLINSSenior AssociateT. [email protected]
DANE PETERSENReal Estate AnalystT. [email protected]
CHARLIE STRAUSSReal Estate AnalystT. [email protected]
FOR FINANCING INQUIRIESWALLY REIDSenior Managing DirectorT. [email protected]
HFF L.P.
9 Greenway Plaza
Suite 700
Houston, TX 77046
T. 713.852.3500
F. 713.852.3490
hfflp.com
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 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. 8.17