trails at - hff
TRANSCRIPT
EXECUTIVE SUMMARYHolliday Fenoglio Fowler, L.P. (“HFF”) is pleased to offer the exclusive opportunity to purchase Trails at 620 (the “Property”), a 69% leased, Class A retail center representing a rare value-add prospect in Austin, Texas. Located in rapidly growing Northwest Austin, the 69,037-square-foot Property is surrounded by exclusive master planned communities, affluent demographics, and nationally recognized school districts. Situated in the foothills of the Texas Hill Country and adjacent to Lake Travis, the Property offers a scenic address along FM 620 with rapid connectivity to major thoroughfares and the executive neighborhoods of West and Northwest Austin. With 5.95 years of remaining average lease term, 12% below market rents, and 21,505 square feet of existing vacancy, Trails at 620 provides investors a superior value-add investment opportunity in the fastest growing city in the country, recently named “The Best Place to Live” by US News and World Reports for the third year running.
2 TRAILS AT 620 EXECUTIVE SUMMARY
PROPERTY SUMMARYProperty: 8300 North FM 620
Austin, TX 78726Size: 69,037 SFOccupancy: 69%Key Tenants: Napa Flats, Mattress Firm, Barre3,
Sport Clips, Freebirds World BurritoYear Built: Phase 1: 2012 | Phase 2: 2014 Acreage: 15.42 Acres
3TRAILS AT 620EXECUTIVE SUMMARY
INVESTMENT HIGHLIGHTS
VALUE-ADD RETAIL IN SCENIC HILL COUNTRY
• Currently 69% occupied, Trails at 620 provides an excellent value-add investment opportunity to lease 21,505 square feet of existing vacancy in an increasing rental rate environment that has seen 6.3% annual rent growth for the past six years.
• The Property boasts a diverse rent roll with major tenants such as Napa Flats, Mattress Firm, Green Mango, Freebirds World Burrito, PDS Texas Dental Services, and Schlotzsky’s collectively occupying 31% of the Property through February 2023.
• Trails at 620 has attracted a diverse mix of local, regional, and international internet proof tenants representing multiple industries including dining, fitness, consumer and home goods, and more, reducing industry exposure through a balanced rent roll.
• With few true value-add opportunities available in Austin over the last few years, Trails at 620 presents the rare opportunity to capitalize on Northwest Austin’s superior leasing velocity as demonstrated by over 457,000 square feet of net absorption since 2014.
Suite Tenant Leased % of Property Lease ExpirationM100 Napa Flats 5,300 8% Oct-25
A100 Mattress Firm 3,500 5% Apr-24
L800 Green Mango 3,500 5% Sep-23
D100 Freebirds World Burrito 3,241 5% Jan-24
G100 PDS Texas Dental Services 3,024 4% Feb-23
A300 Schlotzsky’s 3,000 4% May-22
MAJOR TENANTS
4 TRAILS AT 620 INVESTMENT HIGHLIGHTS
Building ABu
ild
ing
D
Building G
100
20
0
30
0
EF
B
C
100
100
300
400
500
600
700
20
0
30
0
I
JBuilding K
20
0
35
03
00
40
0
Building L
80
0
40
0
100
Building M
100
200300
Buildin
g N
100
200
700
800
O
Q
P
N FM 620 (37,000+ VPD)
WIL
SO
N P
AR
KE
AV
E
CO
NC
OR
DIA
UN
IVE
RS
ITY
DR
RO
CK
HA
RB
OU
R D
R
H
150
100
300
400
500
600
PHASE ISuite Tenant SFA100 Mattress Firm 3,500A200 Angel Donuts 1,500A300 Schlotzsky's 3,000D100 Freebirds World Burrito 3,200D300 Plum Natural Nail Spa 1,751D400 Big Frog 1,500D500 Beau Kisses 1,800D600 Hildebrand Jewelers 2,000D700 West Salon by Leah 1,200G100 PDS Texas Dental Services 3,024G200 Sport Clips 1,680G300 Summermoon Coffee 1,800
PHASE IISuite Tenant SFK100 Moviehouse Management 2,490K150 Vacant 1,019K200 Vacant 3,272K300 European Wax Center 1,527K350 Vacant 1,404K400 AT&T 1,784L100 Vacant 6,540L400 Vacant 1,404L800 Green Mango 3,500M100 Napa Flats 5,300M200 Barre 3 2,008M300 Vacant 2,992
NOT INCLUDED IN SALEBuilding Tenant
B Moviehouse & EateryC Freddy's Frozen Custard & SteakburgersE Oasthouse Kitchen & BarF Flores Mexican RestaurantH Chicken ExpressI Holiday Inn Express & SuitesJ WhataburgerO Children's Learning AdventureP Austin Regional ClinicP Champion CryotherapyP ARA ImagingQ A+ Federal Credit Union
N100 9Round Kickboxing 1,284N200 Vacant 1,144N300 Vacant 1,214N400 Vacant 1,214N500 Vacant 1,214N600 Vacant 88N700 Zenergy Pilates LLC 1,461N800 Boulder Family Canyon Denistry 2,223
PHASE IISuite Tenant SF
Occupied
Available
Not Included in sale
5TRAILS AT 620INVESTMENT HIGHLIGHTS
PREMIER QUALITY ASSET
• Developed in two phases in 2012 and 2014, Trails at 620 is a 69,037 square foot retail center purpose-built for the neighborhood and the Hill Country setting.
• The Property features a classic design with storefront windows spanning the exterior, offering tenants limestone facades and excel-lent exposure to window shoppers visiting other retailers in the center.
• Situated in a spacious setting, the Property enjoys picturesque landscaping and courtyards with abundant trees and a pedestrian friendly shopping experience.
• The Property benefits from shadow anchors Moviehouse & Eatery, Flores Mexican Restaurant, and the Austin Regional Clinic, resulting in additional business opportunities for the Trails at 620 tenancy.
1
AUSTININTERNATIONAL
AIRPORT
AUSTININTERNATIONAL
AIRPORT
WESTLAKEWESTLAKEROLLINGWOODROLLINGWOOD
DRIPPING SPRINGSDRIPPING SPRINGS
SOUTH AUSTINSOUTH AUSTINEAST RIVERSIDEEAST RIVERSIDE
DOWNTOWNDOWNTOWN
WEST LAKE HILLS
WEST LAKE HILLS
TARRYTOWNTARRYTOWN
OAK HILLOAK HILL
LOST CREEKLOST CREEKSPANISH OAKSSPANISH OAKS
ROB ROYROB ROY
WESTGATEWESTGATE
CIRCLE CCIRCLE C
STEINER RANCHSTEINER RANCH
BEE CAVEBEE CAVE
LAKEWAYLAKEWAY
EAST AUSTINEAST AUSTIN
LAKELINELAKELINE
CRESTVIEWCRESTVIEW
NORTHWEST HILLS
NORTHWEST HILLS WINDSOR
HILLSWINDSOR
HILLS
JOLLYVILLEJOLLYVILLEANDERSON MILLANDERSON MILL
BRUSHY CREEKBRUSHY CREEK
ROUND ROCKROUND ROCK
WELLS BRANCHWELLS
BRANCHPFLUGERVILLEPFLUGERVILLE
BARTON CREEK
BARTON CREEK
RIVER PLACERIVER PLACE
CEDAR PARKCEDAR PARK
LAKE TRAVIS
TRAILS AT
7TRAILS AT 620INVESTMENT HIGHLIGHTS
DYNAMIC NORTHWEST LOCATION
• Trails at 620 is located on FM 620, just north of the intersection with RM 2222, which sees traffic in excess of 35,000 vehicles per day.
• Situated one mile from RM 2222 and 4.5 miles from the US 183/183A/SH-45 intersection, the Property provides immediate access to Austin’s expansive highway network as well as surrounding upscale, executive neighborhoods including Steiner Ranch, River Place, Long Canyon, Canyon Creek, and Twin Creeks.
• With an average household income of $170,000 and 84% white-collar professionals, Trails at 620 tenants enjoy exposure to 35,000+ residents with tremendous spending power within a three-mile radius.
• The rolling hills of West/Northwest Austin and proximity to Lake Travis attract an affluent demographic with median housing values exceeding $500,000 in the surrounding area.
DEMOGRAPHICS WITHIN 3 MILE RADIUS
POPULATION GROWTH 2010-2019 - 26%
WHITE COLLAR OCCUPATION - 84%
AVERAGE HOUSEHOLD INCOME - $168,100
MEDIAN HOUSING VALUE - $486,646
BACHELOR’S DEGREE OR HIGHER - 67%
8 TRAILS AT 620 INVESTMENT HIGHLIGHTS
POPULATION GROWTH 2010-2019 - 26%
WHITE COLLAR OCCUPATION - 84%
AVERAGE HOUSEHOLD INCOME - $168,100
MEDIAN HOUSING VALUE - $486,646
BACHELOR’S DEGREE OR HIGHER - 67%
DOWNTOWN AUSTIN
VANDERGRIFTHIGH SCHOOL
FOUR POINTSMIDDLE SCHOOL
GRANDVIEW HILLSELEMENTARY SCHOOL
RIVER PLACECORPORATE PARK
PRESERVE AT 620
FOUR POINTS CENTRE
TRAILS AT
SONTERRATHE VERANDAH
ABELIA FLATS
NOLINA FLATS
LONG CANYON$700K - $3M RIVER PLACE
$500K - $8M
STEINER RANCH$500K - $5M
JESTER ESTATES$400K - $2M
WEST LAKE HILLS$600K - $10M
WILSON PARK DRIVE
OFFICE
NEIGHBORHOOD
APARTMENT
SCHOOL
PROTECTED NATURAL AREA
BALCONES CANYONLANDS PRESERVE
RIVER PLACEELEMENTARY SCHOOL
THE PARKE &GRANDVIEW HILLS
$400K - $1.5M
ASHTON WOODS$300K - $500K
9TRAILS AT 620INVESTMENT HIGHLIGHTS
FAR NORTHWEST AUSTIN RETAIL MARKET OVERVIEW
• Since 2015, Austin’s Far Northwest retail market has averaged 94% occupancy, catering to retailers seeking a location a short drive from superior residential options.
• During the same time period, Far Northwest retail market rents have increased 25%, or 5.08% annually, to their current levels of $19.29 per square foot today.
• Barriers to entry in Northwest Austin include environmentally sensitive areas and nature preserves, limiting future development in the area.
10 TRAILS AT 620 INVESTMENT HIGHLIGHTS
RENTAL RATES VS. OCCUPANCY
$10.00
$12.00
$14.00
$16.00
$18.00
$20.00
$22.00
$24.00
80%
82%
84%
86%
88%
90%
92%
94%
96%
98%
2011 2012 2013 2014 2015 2016 2017 2018 2019 YTD
Rental Rates vs. Occupancy
Austin Rental Rates Far Northwest Rental Rates Austin Occupancy Far Northwest Occupancy
11TRAILS AT 620INVESTMENT HIGHLIGHTS
THRIVING AUSTIN ECONOMY
• AN AVERAGE OF 152 PEOPLE MOVE TO AUSTIN EACH DAY (SINCE 2010)
• RECORD LOW UNEMPLOYMENT RATE (2.9%)
• 35,200 NET NEW JOBS (3.3% GROWTH) IN PAST 12 MONTHS
12 TRAILS AT 620 INVESTMENT HIGHLIGHTS
500 Jobs
1,700 Jobs
250 Jobs
2,000+ Jobs
400 Jobs
1,500 Jobs
3,000 Jobs
1,000 Jobs
600 Jobs
5,000 Jobs
400+ Jobs
500 Jobs
RECENT MAJOR EXPANSION & RELOCATIONS IN AUSTIN
NO. 1 FASTEST GROWING CITY IN THE COUNTRY
-FORBES
AUSTIN IS THE “#2 CITY FOR REAL ESTATE INVESTMENT”
-ULI (2018)
“TOP FIVE BEST CITIES FORNEW JOBS”
FOR THE FOURTH YEAR IN A ROW -FORBES
OVER 35,000 NEW JOBS ADDED IN 2018 AND OVER 31,000 NEW JOBS
EXPECTED IN 2019
UNEMPLOYMENT RATE OF 2.9%, VS 4.1% IN TEXAS AND
4.0% NATIONWIDE
ACCOLADES
TIM COOK, CEO OF APPLE“Literally, many, many pieces of our company are here. The team here is a very critical part of our
company, and we’ve been very happy here.“
APPLE ANNOUNCES NEW $1 BILLION AUSTIN CAMPUS AS PART OF BIG U.S. EXPANSION
GOOGLE IS EXPANDING ITS DOWNTOWN AUSTIN FOOTPRINT TO 1 MILLION SF WITH THE ANNOUNCEMENT OF THE FORTHCOMING BLOCK 185 TOWER
13TRAILS AT 620INVESTMENT HIGHLIGHTS
TRAILS AT
HFF 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 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.
DREW FULLERDirector
KELSEY ROOP SHEBAYSenior DirectorT: 512-532-1927
PATRICK MCCORDSenior AssociateT: 512-532-1928
SCHAFER SMARTTAnalyst
DEBT FINANCING
KYLE SPENCERSenior DirectorT: 512-532-1921
CONTACT