offering summary...offering overview onebuilding address 1301 solana blvd, building 1 westlake,...
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O F F E R I N G S U M M A R Y
The OfferingRetained on an exclusive basis, Jones Lang LaSalle Americas, Inc. (“JLL”) is pleased to offer qualified investors the opportunity to acquire Plaza at Solana (the “Property”), a four-building, 360,883 square-foot Class A office complex with a neighborhood retail amenity offering boasting 87.3% occupancy. The Property is positioned in DFW’s demographic leading submarket, Westlake, TX amongst Dallas/Fort Worth’s largest corporate campuses including Deloitte, Fidelity, TD Ameritrade, and Charles Schwab. Situated conveniently in a highly attractive mixed-use environment inclusive of recently completed expansive outdoor amenity space and landscaping improvements, Plaza at Solana provides the security of spacing though suburban living with all the amenities of an urban lifestyle.
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EXECUTIVE SUMMARY
Offering Overview
BUILDING
oneADDRESS
1301 Solana Blvd, Building 1 Westlake, Texas, 76262
RENTABLE AREA
148,555 SF (All Off ice)
OCCUPANCY
91.6% Occupied
WALT
4.7 Years
BUILDING
twoADDRESS
1301 Solana Blvd, Building 2 Westlake, Texas, 76262
RENTABLE AREA
167,000 SF (All Off ice)
OCCUPANCY
92.7% Occupied
WALT
4.7 Years
BUILDING
fourADDRESS
1301 Solana Blvd, Building 4 Westlake, Texas, 76262
RENTABLE AREA
Off ice: 23,032 SF Retail: 22,296 SF
OCCUPANCY
Off ice: 18.2% Occupied Retail: 90.7% Occupied
WALT
2.7 Years
360,883 SFRENTABLE AREA
87.3%TOTAL OCCUPANCY
20.43ACRES
1987–1988YEAR BUILT
4.6 YEARSWALT
TOTAL PARKING:1,324 Spaces (3.73/1,000 SF)
*ENTITLEMENT FOR100 more spaces (4.0/1,000 SF)
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Investment Highlights
Highly-Amenitized Corporate Campus
Recently Renovated, Market Leading Amenity Package
Substantial Discount to Replacement Cost
Robust Leasing Activity
Positioned for Growth
The greater Solana Business Park is a 233-ACRE MASTER PLANNED OFFICE PARK designed by award-winning architect Ricardo Legorreta, situated along the Hwy 114 corridor
Efficient 30,000 - 34,000 SQUARE-FOOT floorplates
ADJACENT 294-ROOM Marriott Solana and STATE-OF-THE-ART Larry North Fitness Center
Over $6.6 MILLION in recent upgrades designed by SWA Group
Stunning landscaping and 2.5 MILES OF WALKING AND RUNNING PATHS
21K SF OF NEIGHBORHOOD RETAIL with three restaurants and outdoor green space
The Property is expected to trade BELOW 60% OF REPLACEMENT COST on a per square foot basis
Rare opportunity to purchase one of DFW’S MOST ICONIC office campuses
LOW FLOOR-TO-AREA RATIO of approximately 41% on 20 acres of land
OVER 200,000 SF OF LEASE EXECUTIONS/RENEWALS within the last 24 months
OVER 56% of the office tenancy is Investment Grade
15% INCREASE IN LEASE RENTAL RATES over last 5 Years
BELOW MARKET RENTS combined with recent expansive growth along Hwy 114 position the new owner for substantial growth in rent and leasing activity
Building 4 offers a UNIQUE VALUE ADD OPPORTUNITY for an end user looking for an owner-occupied experience, or to multi tenant
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EXECUTIVE SUMMARY
Investment Highlights
Highly-Amenitized Corporate Campus
Recently Renovated, Market Leading Amenity Package
Substantial Discount to Replacement Cost
Robust Leasing Activity
Positioned for Growth
The greater Solana Business Park is a 233-ACRE MASTER PLANNED OFFICE PARK designed by award-winning architect Ricardo Legorreta, situated along the Hwy 114 corridor
Efficient 30,000 - 34,000 SQUARE-FOOT floorplates
ADJACENT 294-ROOM Marriott Solana and STATE-OF-THE-ART Larry North Fitness Center
Over $6.6 MILLION in recent upgrades designed by SWA Group
Stunning landscaping and 2.5 MILES OF WALKING AND RUNNING PATHS
21K SF OF NEIGHBORHOOD RETAIL with three restaurants and outdoor green space
The Property is expected to trade BELOW 60% OF REPLACEMENT COST on a per square foot basis
Rare opportunity to purchase one of DFW’S MOST ICONIC office campuses
LOW FLOOR-TO-AREA RATIO of approximately 41% on 20 acres of land
OVER 200,000 SF OF LEASE EXECUTIONS/RENEWALS within the last 24 months
OVER 56% of the office tenancy is Investment Grade
15% INCREASE IN LEASE RENTAL RATES over last 5 Years
BELOW MARKET RENTS combined with recent expansive growth along Hwy 114 position the new owner for substantial growth in rent and leasing activity
Building 4 offers a UNIQUE VALUE ADD OPPORTUNITY for an end user looking for an owner-occupied experience, or to multi tenant
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Investment HighlightsDynamic Westlake/Southlake Location
5.3M SFCLASS A OFFICE
3.1M SFOF CORPORATE HQ’S
5 FORTUNE 1000 COMPANIES
CONSISTENTLY RANKED AS ONE OF AMERICA’S
WEALTHIEST CITIES AND “SUPER ZIPS” BY FORBES
10 MINUTESFROM DFW
INTERNATIONAL AIRPORT
140K SFOF RETAIL UNDER CONSTRUCTION WITHIN
2-MILE RADIUS TO SATISFY DEMAND
$31.67 5.0% YoY Growth
$20.00
$22.00
$24.00
$26.00
$28.00
$30.00
$32.00
$34.00
2013 2014 2015 2016 2017 2018 2019
Westlake / Grapevine Rental Rate Far North Dallas Las Colinas Richardson
CLASS A RENTAL RATES – DALLAS / FORT WORTH
BEST IN CLASS DEMOGRAPHICS
HIGHEST AVERAGE CLASS A RENTAL RATE GROWTH AMONG SUBURBAN SUBMARKETS
DALLAS/FORT WORTH OUTPACES THE NATION’S AVERAGE ANNUAL RENT GROWTH
BY MORE THAN DOUBLE
45%2010-2019
POPULATION GROWTH WITHIN A 5-MILE RADIUS
$216,220AVERAGE
HOUSEHOLD INCOME WITHIN A 1-MILE RADIUS
$731,751MEDIAN HOME VALUE
WITHIN A 1-MILE RADIUS
TD AMERITRADEFIDELITY INVESTMENTS
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EXECUTIVE SUMMARY
26,000-AcreMaster-Planned Community
3M SF of O�ce Developments30M SF of Industrial Developments
WESTLAKE ENTRADA100+ Townhomes & Villas
Retail, Restaurants, O�ce Space3,500-Seat Performance Hall
(Under Construction)
TOWN OF TROPHY CLUB4,200 Households
GRANADA WESTLAKE84 Single-Family Homes
($1.2+ Million)
MARRIOTT SOLANA294-Room Full Service Hotel
TROPHY WOODDISTRICT
WESTLAKE#1 Most A�uent U.S.
Town (Forbes)
THE KNOLLS AT SOLANA BY
WILBOW56 Single-Family
Homes ($1.2+ million)
SOUTHLAKEAvg Household Income
$260,000
FUTURE LUXURY TOWNHOME
DEVELOPMENT
525-Acre Gated Community and Tom Fazio Golf Course
2,500-Acre Mixed-Use Development
715,000-SF Campus
FIDELITY INVESTMENTS618,000-SF
Campus 1.2 Million SF HQ (Under Construction)
190,000-Capacity NASCAR & IndyCar Venue
TD AMERITRADE 355,000-SF
Campus 200,000-SF
Campus
SOLANA FITNESS CLUB
38,000-SF Facility Operated by Larry North Fitness
TERRACEAT SOLANA
1.1-Million-SF O�ce
VARISPACESOUTHLAKE
380,000-SF O�ce
MARR IOT TD A L L A S / F O R T W O R T H | W E S T L A K E
102,160 VPD
PLAZA AT SOLANA339,000 SF of O�ce,22,000 SF of Retail
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EXECUTIVE SUMMARY
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Dallas-Fort Worth ResiliencySUPERIOR JOB
RECOVERY DFW ONLY LOST 3.7% OF ITS JOB
BASE, THE 3RD LEAST AMONG US’ MSAS. AS OF JUNE 2020, DFW HAS RECOVERED THE 3RD MOST JOBS (35%) BEHIND LA AND NY.
CORPORATE RELOCATION ACTIVITY
SINCE THE BEGINNING OF 2019, THE CHAMBER OF COMMERCE HAS RECEIVED 60 CALLS PER MONTH ABOUT CORPORATE RELOCATIONS,
THE MOST EVER EVEN BEFORE THE PANDEMIC.
ATTRACTIVE LOW COST OF LIVING/DOING BUSINESS
TEXAS’S FAVORABLE TAX ECONOMY WITH 0% STATE/LOCAL
TAX HAS POSITIONED DALLAS TO BE RANKED THE #1 CITY FOR
DOING BUSINESS OVER THE LAST 14 YEARS.
DFW TECH SECTOR LEGACY
AND NEW GROWTH
THE DFW REGION HAS A LEGACY OF BEING A TECHNOLOGY
LEADER WITH COMPANIES SUCH AS TEXAS INSTRUMENTS AND EDS WHICH STARTED IN THE
1980S. MORE RECENTLY, DFW HAS ATTRACTED INNOVATION
HUBS SUCH AS BOEING, UBER, FACEBOOK, AND GOOGLE.
DIVERSIFIED EMPLOYMENT SECTORSNO JOB SECTOR ACCOUNTS FOR MORE THAN
20% OF DFW’S EMPLOYMENT BASE. BASED ON MOODY’S ANALYTICS,, DFW RANKS IN THE TOP
5 OF THE US’ MOST DIVERSIFIED EMPLOYMENT BASE.
ADDITIONALLY, THE REGION HAS REDUCES ITS RELIANCE ON OIL & GAS, FROM 5.8% OF GDP
IN 1982 TO 1.6% IN 2018.
STRONG OFFICE MARKET
FUNDAMENTALSDFW’S GENERAL LACK OF
OVERBUILDING AND DIVERSE ECONOMY HAS LED TO
CONSISTENT RENT GROWTH AND OCCUPANCY INCREASES OVER THE MILLENNIUM, RANKING IN
THE TOP 10 FOR MAJOR US CITIES IN BOTH CATEGORIES.
EXECUTIVE SUMMARY
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Why Dallas-Fort Worth?
#1 REAL ESTATE MARKET FOR 2019
URBAN LAND INSTITUTE/PWC
#1 MSA FOR PROJECTED
POPULATION GROWTH461,800 NEW RESIDENTS PROJECTED
OVER THE NEXT 5 YEARS
#1 MSA FOR JOB GROWTH IN 2019
127,600 JOBS ADDED
OVER 1,000,000 JOBS
ADDED SINCE 2010
3.0%UNEMPLOYMENT RATE
PRE-COVID
#1 MARKET FOR OFFICE ABSORPTION
26.3M SF NET ABSORPTION IN THE LAST 5 YEARS
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35W
35W
820
820
35E
35E
30
30
30
45
20
20
35E
635
635
635820
20
20
30
30
287
380
380
380
287
67
175
80
175
75
75
121
121
114
114
121
183
114
190
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360
161360
199
White RockLake
Lake Ray Hubbard
Lavon Lake
LewisvilleLake
GrapevineLake
MountainCreek Lake
Joe PoolLake
MountainLake
Lake Worth
BenbrookLake
LakeArlington
NorthLake
Fort WorthMeacham
Airport
AddisonAirport
Dallas/Fort WorthInternational
AirportDALLAS
LOVE FIELDAIRPORT
NAS Joint ReserveBase Fort Worth
Fort WorthAllianceAirport
Lakewood
LakeHighlands
PrestonHollow
UniversityPark
HighlandPark
Uptown
McKINNEY
ALLEN
PLANO
MURPHY
SACHSE
WYLIE
LUCAS
CARROLLTON
LEWISVILLE
FLOWER MOUND
GRAPEVINEFARMERSBRANCH
RICHARDSON
GARLAND ROWLETT
ROCKWALL
ROYSECITY
FARMERSVILLE
CORINTH
FRISCO
PROSPER
MESQUITE
HEATH
SUNNYVALE
BALCHSPRINGS
OAK CLIFF
ADDISON
DUNCANVILLE
CEDAR HILL
MANSFIELD
ARLINGTONGRAND PRAIRIE
IRVING
LAS COLINAS
BEDFORD
EULESS
NORTHRICHLAND
HILLS
KELLER
HASLET
RHOME
DECATUR
SAGINAWWATAUGA
WHITESETTLEMENT
WESTOVERHILLS
LAKEWORTH
AZLE
BENBROOK
FOREST HILL
BURLESON
MIDLOTHIAN
FERRIS
HUTCHINSSEAGOVILLE
CRANDALL
CROWLEY
HALTOM CITYHURST
SOUTHLAKE
ROANOKE TROPHYCLUB
JUSTIN
ARGYLE
PONDER
DE SOTO LANCASTER
KAUFMAN
FORNEY
COLLEYVILLE
COPPELL
DENTON
THE COLONY
LITTLEELM
HIGHLANDVILLAGE
DALLASCBD
FORTWORTH
EDGECLIFFVILLAGE
DALWORTHINGTONGARDENS
About JLL JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $18.0 billion, operations in over 80 countries and a global workforce of more than 93,000 as of December 31, 2019. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.Jones Lang LaSalle Americas, Inc. or its state-licensed affiliate (“JLL”) has been engaged by the owner of the property to market it for sale. Information concerning the property described herein has been obtained from sources other than JLL, and neither Owner nor JLL, nor their respective equity holders, officers, directors, 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. JLL and owner 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. The Property may be withdrawn without notice. If the recipient of this information has signed a confidentiality agreement regarding this matter, this information is subject to the terms of that agreement. ©2020. Jones Lang LaSalle IP, Inc. All rights reserved.
INVESTMENT ADVISORS
ANDREW LEVYSenior Managing Director(469) [email protected]
TODD SAVAGEManaging Director(469) [email protected]
PARKER MCCORMACKDirector(214) [email protected]
CHRIS GERARDSenior Managing Director(214) [email protected]
DEBT ADVISOR ANALYTICAL SUPPORT
ANDY SCOTTSenior Managing Director(469) [email protected]
JASON JACOBSAnalyst(214) [email protected]
ROBBY WESTERFIELDAnalyst(469) [email protected]
2323 Victory AvenueSte 1200 | Dallas, TX | 75219
T +1 214.265.0880www.us.jll.com/capitalmarkets
DFW Metroplex#1 TOTAL JOB GROWTH IN 2019
127,600 Jobs
22 Fortune 500 Companies 3RD MOST IN THE NATION
2019 AIRPORT OF THE YEAR – Air Transport World
THREE RESEARCH 1 UNIVERSITIES
3 FORTUNE 10 COMPANIES No other U.S . metro has more than one; including SF, Seattle, NYC, LA & Chicago
The DFW Region Adds 400 NEW RESIDENTS PER DAY