cedar park station cedar park • texas | offering …...executive summary hff is pleased to offer...
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CEDAR PARK • TEXAS | OFFERING MEMORANDUM
N BELL BO
ULEVARD
AUSTIN-ROUND ROCK MSA
28.17 ACRES
CAPI
TAL
MET
RO R
AIL
REDL
INE
FM 1431/WHITESTONE BOULEVARD
DOWNTOWNAUSTIN
(± 18 MILES)GARRETT GILLELAND
Director512.532.1968
DREW FULLERDirector
SCHAFER SMARTAnalyst
DEBT CONTACTKYLE SPENCERSenior Director
CEDAR PARK STATION
EXECUTIVE SUMMARYHFF is pleased to offer the unique opportunity to purchase a 28.17-acre mixed-use development site in Cedar Park, Texas, a nationally recognized growth leader located in the northwest suburbs of Austin, Texas. Cedar Park Station (The “Property”) offers exceptional frontage and visibility on the heavily traveled US 183 (N Bell Blvd), which is minutes from the bypass route 183A Toll Road. Located at 1700 N Bell Blvd, the Property is 24 miles from Downtown Austin, 11 miles from The Domain mixed-use development and ideally positioned on the western edge of Williamson County, which has seen 21% population growth over the last five years adding over 80,000 new residents. This highly desirable location is ideally suited for a mixed-use development given its ease of access to major thoroughfares (US 183/183A Toll Road, 1431 and SH 45) as well as the close proximity to employers and economic drivers. This offers investors a tremendous opportunity to acquire a rare piece of developable land in one of the most dynamic growth corridors in the nation.
PROPERTY SUMMARYPRICING
Contact HFF
LOCATION1500-1700 N Bell Boulevard
Cedar Park, Texas 78613
SITE AREA28.17 Acres
ZONINGGeneral RetailGeneral Office
Light Industrial
CURRENT USERaw Land
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CEDAR PARK STATION
INVESTMENT HIGHLIGHTS Outstanding Development Location • Cedar Park Station is ideally situated in the heart of one of the
fastest growing municipalities in the country; Cedar Park, Texas
• Cedar Park was one of the 12 fastest-growing communities in the country in 2016, with a growth rate of 4.5%
• Additionally, Cedar Park has finished within the top 25 in popula-tion growth every year since 2015
• The population within a 3-mile radius of the Property is currently 78,268, an increase of 21% since 2010. The 3-mile population is expected to increase 10% by 2022
Established Intersection with Ideal Access• The Property is situated just north of one of Cedar Park’s key
intersections, Whitestone Blvd and Bell Blvd
• This intersection is home to anchor retailers H-E-B and Walmart Supercenter as well as retailers such as Bank of America, Chase Bank, McDonald’s and Panda Express
• The Property offers exceptional access to major thoroughfares – US 183A Tollway, US 183 and SH 45 Tollway – providing rapid connectivity to key destinations in Austin’s high growth North-west submarket
• This best in class access presents potential investors with a wide array of future development opportunities
Critical Mass • At 28.17 acres, the Property is one of the larger tracts available
within a 3-mile radius, and the largest tract available near the intersection of Whitestone Blvd and Bell Blvd
• This scale creates the ideal candidate for a planned develop-ment rezone from the current GR/GO/LI zoning with approval from the City of Cedar Park
• A Planned Development rezone could allow for a multitude of uses, including office, retail and multifamily, fulfilling the City of Cedar Park’s wishes for mixed-use and higher density use
• This impressive scale is coupled with a development friendly site, offering ample frontage along Bell Boulevard and a square boundary
1
AustinInternational
Airport
AustinInternational
Airport
WESTLAKE
SOUTH AUSTIN
EAST RIVERSIDE
DOWNTOWN
WESTLAKE HILLS
TARRYTOWN
OAK HILL
EAST AUSTIN
LAKELINE
CRESTVIEW
NORTHWEST HILLS WINDSOR
HILLS
JOLLYVILLE
ANDERSON MILL
BRUSHY CREEK
ROUND ROCK
WELLS BRANCH
PFLUGERVILLE
BARTON CREEK
CEDAR PARK
3
CEDAR PARK STATION
SITE
4
CEDAR PARK STATION
LAKELINE MALL
LAKELINE MALL
N BELL B
OULEVARD
Cedar Park Town Center - 800 HomesCedar Park Town Center - 800 Homes
FM 1431/WHITESTONE BLVD
Location: 1700 Bell Ave, Cedar Park, Texas
City: Cedar Park
County: Williamson County
Site Area: 28.5 Acres
Zoning: General Retail
General Office
Light Industrial
*PD Rezone Likely
HFF has had several coversations with the City of Cedar Park, and based on conversations with them, this Property is a prime candidate for a PD (Planned Development) as it is located in a Focused Planning Zone
This allows potential investors the ability to obtain favorable zoning based on desired development
Tracts (5): 1 - 9.997 Acres - GR Zoning
2 - 4.490 Acres - LI Zoning
3 - 5.002 Acres - GO Zoning
4 - 6.651 Acres - GR Zoning
5 - 2.174 Acres - GR Zoning
Access: Potential access points have been identified by the department of transportation
Watershed: South Brushy Creek
Floodplain: No portion of the Property lies within boundaries of FEMA 25 and 100 year floodplain
Topography: Site contains level topography
*HFF encourgaes prospective buyers to discuss viablity of a rezone with the City of Cedar Park and makes no warrants regarding the viability of a rezone
PROPERTY OVERVIEW
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CEDAR PARK STATION
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CEDAR PARK STATION
5 - 3.71 Acres - LI Zoning
2 - 3.25 Acres - LI Zoning
1 - 6.24 Acres - GR Zoning4 - 12.8 Acres - GR Zoning
3 - 2.17 Acres - GO Zoning
*Please Note, this is the current zoning of the Property. HFF has had several conversations with the City of Cedar Park, and based on conversations with them, this Property is a prime candidate for a PD (Planned Development)
General Retail General Office Light Industrial
NOT PART OF SALE
LOCATION OVERVIEWOUTSTANDING LOCATION Located 24 miles from Downtown Austin, Cedar Park is now the third largest city in the Austin MSA; with a population exceeding 65,000 people in the city limits and over 171,000 people in the trade area.
ADVANCING DEMOGRAPHICSBolstered by Northwest Austin’s strong tech presence and quality amenities, the area surrounding the Property has flourished in recent years with population increasing 21% since 2010 within a 3-mile radius of the Property. Additionally, average household income is 36% over the national average within 3 miles of the Property.
SYNERGISTIC RELATIONSHIP WITH NEARBY HOSPITAL/MOB & SURROUNDING RETAIL DEVELOPMENTSCedar Park Regional Medical CenterCedar Park Regional Medical Center is a 290,000 square foot Join Commission accredited hospital offering comprehensive health care services to Cedar Park and surrounding communities. Located in close proximity to the Property, presenting an opportunity to capitalize on the largest private employee base in the city.
H-E-B Center at Cedar ParkThe H-E-B Center at Cedar Park, a 6,800 seat multi-purpose event center, is home to the Texas Stars, the American Hockey League affiliate of the Dallas Stars and the Austin Toros, the NBA D-League team of the San Antonio Spurs. Since opening in September 2009, over 1 million people have attended events ranging from sports and concerts to Cirque du Soleil in the Center. The center has hosted music artist including Carrie Underwood, Eric Church, Def Leppard, Rascal Flatts, and Motley Crue. Cedar Park Center is the premier multiuse entertainment facility of Central Texas hosting more than 130 events per year including sporting events, concerts, and family shows.
1890 Ranch Shopping CenterAdjacent to the Cedar Park Regional Medical Center, 1890 Ranch is the complete shopping, dining and entertainment destination for the Cedar Park and Leander communities. The center offers over 80 stores, services, restaurants and entertainment options including anchors such as Academy, Super Target, PetSmart, Hobby Lobby, Bealls and 12 screen Cinemark theater complex.
The ParkeThe Park is a newly completed retail center located just east of the Property. This 42 Acre, 400,000 retail center features 365 by Whole Foods, Dick’s Sporting Goods, Field and Stream, Nordstrom Rack and over 40 other top quality retailers. This retail center serves as a major consumer traffic driver for Cedar Park, and cements the area as a regional retail hub.
DEMOGRAPHICS1-Mile 3-Mile 5-Mile
2017 Population Estimate 6,602 78,268 151,936
2022 Population Projection 7,241 86,957 169,637
Percent Change: 2017 to 2022 10% 11% 12%
2017 Est. Average Household Income $87,879 $106,347 $111,161
2017 Est. Median Housing Value $189,980 $227,504 $245,823
DRIVE TIMESWhitestone Blvd 1 MINUTE
Highway 183 A 3 MINUTES
Highway 183/SH 45 Intersection 11 MINUTES
The Domain 20 MINUTES
Austin 29 MINUTES
Austin Bergstrom International Airport40 MINUTES
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CEDAR PARK STATION
400,000 square foot retail center
98% Occupied
The Parke
Whitestone Blvd
Whitestone Blvd
New Hope Drive
New Hope Drive
Cedar ParkCenter
Cedar ParkCenter
Cedar Park Town Center
181,000 square foot retail center
100% Occupied
1890 Ranch900,000 square foot retail center
100% Occupied
40,000 VPD
40,000 VPD
36,000 VPD36,000 VPD
37,000 VPD
37,000 VPD
63,000 VPD63,000 VPD
N BELL BLVDN BELL BLVD
8
CEDAR PARK STATION
1LAKELINE
LEANDER
CEDAR PARK
JOLLYVILLE
ANDERSON MILL
BRUSHY CREEK
ROUND ROCK
WELLS BRANCH
PFLUGERVILLEParmer Lane
Ronald Reagan Blvd
Whitestone Blvd
FM 6
20
FM 6
20
Anderson Mill Rd
N Bell Blvd
Whitestone Blvd
9
CEDAR PARK STATION
SITE
AUSTIN APARTMENT MARKET OVERVIEWAustin’s multi-housing market has continuously been supported by strong fundamentals, low unemployment levels, numerous corporate relocations, low cost of living and one of the fastest growing economies in the world. The metro area is a national forerunner in both population and job growth as a 159 people move to Austin every day with 31% of the population in the prime renter age of 18-34.
Occupancy /AbsorptionAverage occupancy in Austin is 92.3% according to first quarter figures, slightly higher than previous quarter demonstrating Austin’s continued stability despite 7,668 units being delivered in the past 12 months. Austin has seen positive net absorption for 12 of the last 13 quarters as heightened supply has been met with even greater demand due to the city’s unprecedented in-migration. Stabilized Class A and Class B properties continue to show strong demand and finished the first quarter with average occupancy levels of 92.8% and 94.2%, respectively. Demand for Austin apartments remains robust as 5,812 units of net absorption were recorded during the last 12 months. The development pipeline is also strong, and firms are planning to break ground on approximately 9,649 units over the next 12 months. Austin’s continued population growth and strong market fundamentals position the city to readily absorb this new supply.
Rental RatesRental rates in Austin have mirrored rising occupancies. Monthly average rental rates are currently $1,215 ($1.41 PSF), up from $1,179 ($1.34 PSF) at this time last year, representing a 3.1% annual growth rate. Class A product currently commands rental rates of $1.72 PSF.
NORTHWEST SUBMARKET OVERVIEWThe Northwest Submarket is comprised of 27,949 units in 94 properties making it the largest submarket in the Austin MSA. The Northwest submarket has performed extremely well due to strong population and job growth experienced in the “Tech Triangle” of Northwest Austin.
Demand for luxury rental options is a prevailing theme is this market with only 4,228 Class A units available –15% of submarket inventory compared to 28% for Austin overall. Lack of supply and increased demand for high-end properties has led to robust rent grow as Class A units have seen effective rents increase 3.4% in the first quarter alone. With only 836 units (3% of inventory) currently under construction, there exist an excellent opportunity for properties to benefit from pent up demand for best-in-class features by enhancing the community amenities and unit interiors to compete more directly with new product.
Market Comparison – 2Q2016Total Units Occupancy Monthly Rent Rent PSF
Austin 176,895 92.30% $1,206 $1.41
Northwest 27,949 93.00% $1,139 $1.28 Comp. Set 1,982 93.6%* $1,293 $1.38
*Stabilized
Source: Apartment Data Systems
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CEDAR PARK STATION
AUSTIN OFFICE MARKETThe Austin office market has become one of the nation’s strongest, led by strong market fundamentals and booming population growth, with an average of 159 people moving to Austin each day. Recently ranked by ULI as the “#1 City for Real Estate Investment,” Austin continues to mature into a highly diverse market, attracting top companies like Apple, Google, Facebook, Samsung, AMD, and Amazon. This growth is in addition to famous Austin flagships such as Dell, Homeaway, and Whole Foods. These companies continue to grow their already immense real estate footprints while enjoying the pro-business climate and highly educated workforce. The new Dell Medical School has led to the local expansion of pharmaceutical companies as Austin emerges as a biotech center of the South. Between 2005 and 2015, Austin saw 38% population growth, more than tripling the national average of 9%. These drivers, among many others, have contributed to Austin being named the “Best Place to Live in the US” by U.S. News and World Report in 2017.
Inventory/Absorption• The Austin office market has grown from 89.6 million square feet in 2013 to 98.2 million square feet of
product today – an increase of 10% during the five-year span, doubling the previous five-year increase of 4%
• Total net absorption has stayed positive for 15 years in a row, averaging 1.8 million square feet of net absorption every year since 2003
• During that same 15 year run the market has delivered an average of 1.5 million square feet of product every year, with net absorption outpacing deliveries by 4.1 million square feet
Occupancy• Occupancy rates continue to hold strong at 91.5% which is a 5.4% increase since 2010, in a market that has
delivered 10.6 million square feet during that time
• 2014-2017 YTD saw 8.9 million of that 10.6 million square feet delivered, while boasting an astonishing 3.3% increase of occupancy rates during that four-year period
• Occupancy is expected to continue to increase with heavy demand for space from job and population growth and strong pre-leasing on planned projects
Rental Rates• Since 2010, Austin NNN office market rents have increased 40.2%, from $17.01 per square foot to $23.84 per
square foot today
• Today’s Austin NNN office rents of $23.84 per square foot are an all-time high, but still a significant discount to competitive cities, drawing continued corporate expansions and relocations
• Since 2010, the Austin office market has experienced an average annual rent growth of 5.0%
TOP OFFICE OWNERS IN AUSTIN
FOREIGN INVESTMENT IN AUSTIN
UNITED KINGDOMGERMANY SWITZERLAND ISRAEL
MEXICO SOUTH KOREA CANADA
83%84%85%86%87%88%89%90%91%92%93%
0500,000
1,000,0001,500,0002,000,0002,500,0003,000,0003,500,0004,000,0004,500,0005,000,000
2010 2011 2012 2013 2014 2015 2016 2017 YTD
Austin Office Absorptions vs. Deliveries
Absorption Deliveries Occupancy
82%
84%
86%
88%
90%
92%
94%
$16.00
$17.00
$18.00
$19.00
$20.00
$21.00
$22.00
$23.00
$24.00
$25.00
2009 2010 2011 2012 2013 2014 2015 2016 2017YTD
Austin Office NNN Rental Rates & Occupancy
Austin Austin Occupancy
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AUSTIN RETAIL MARKET OVERVIEWAustin’s retail market continues to flourish, supported by strong fundamentals including immense population growth, low unemployment levels and a lack of development. Nation leading population and housing growth have spurred increase user demand from national, regional and local tenants. This increased demand has been met with a lack of available product, leading to increased occupancy and rental rates. Markets like Cedar Park have benefited the most from this population boom as the suburbs of Austin lead the way in population growth according to the US Census Bureau.
Inventory/Absorption• The overall Austin retail market consists of 9,369 properties totaling 108 million square feet of
space (single and multi-tenant properties), an increase of 14% since 2007
• The Austin retail market has experienced net positive absorption every year since 2007, averaging 2.07 million square feet annually
• Since 2007, the market absorbed 18 million square feet of product, outpacing deliveries by 7.2 million square feet
Occupancy• The amount of vacant space in the Austin market has steadily trended downward since 2007
when the average retail occupancy level was 93.2%
• As of second quarter 2017, occupancy rates are the highest they have ever been at 96.3%
• With only 1.1M square feet under construction market wide, occupancy rates are expected to remain low
Rental Rates• Average quoted rental rates in the Austin retail market are $21.27 per square foot NNN, an
increase of 20% since 2014
• Healthy absorption, limited product, and few new deliveries provide landlords the opportunity to continually push rental rates
92.0%92.5%93.0%93.5%94.0%94.5%95.0%95.5%96.0%96.5%97.0%
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
2010 2011 2012 2013 2014 2015 2016 Q2 2017
ABSORPTION, DELIVERIES & OCCUPANCY
Absorption Deliveries Occupancy
$15.00
$16.00
$17.00
$18.00
$19.00
$20.00
$21.00
$22.00
2010 2011 2012 2013 2014 2015 2016 Q2 201792.0%92.5%93.0%93.5%94.0%94.5%95.0%95.5%96.0%96.5%97.0%
OCCUPANCY & RENTAL RATES
Occupancy Rental Rates
TOP RETAIL OWNERS IN AUSTIN
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BOOMING AUSTIN ECONOMYAlthough it maintains a laid-back vibe, the city dedicated to “Keeping Austin Weird” shows no signs of slowing down. A booming economy, growing job market, high quality of life and low cost of living make Austin a sought-after city for all ages. As one of the nation’s top economic performers, Austin is a thriving city with a young, highly educated and vibrant population that attracts business a tourism. The metro leads the nation in terms of population growth, fueled largely by the strongest rate of in-migration with an impressive 157 people moving to the city a day. The 11th largest population among U.S. cities, Austin’s population has expanded 16% between 2010 and 2015. Compared to all large metros in the country, Austin ranked No. 2 in growth for the five-year period. The population explosion of the Texas capital, which reached approximately 2.1 million last year, is expected to soar 98.5% to nearly 4 million by 2040. Nearly doubling in size, Aus-tin’s population is projected to grow faster than any other large U.S. city in the next 25 years. Named among Forbes 10 Best Cities for Jobs, Austin has one of the best job mar-kets in the nation. In the 12 months ending in November, the Austin metro added 19,500 net new jobs, a growth rate of 2.0%. For this period, Austin is the 25th fastest growing major metro. Austin’s seasonally adjusted unemployment rate is currently 3.0%.
90%
91%
92%
93%
94%
95%
96%
97%
98%
20162015201420132012201120102009
United States Texas Austin
EMPLOYMENT GROW TH
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
20152014201320122011
United States Texas Austin
POPUL ATION GROW TH
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LIVE, WORK, PLAYConsistently named among the best places to live and work, Austin is universally regarded for its thriving economy, low cost of living and enviable quality of life. Austinites enjoy a reasonable cost of living with a median home price that is below the national average, lack of state taxes and the highest per capita income of all major cities in the Lone Star State. In addition to a burgeon-ing downtown and prosperous employment opportunities the city offers many museums, performing arts venues, sports events and recreational activities. Affectionately deemed The Live Music Capital of the World, Austin boasts 1,700 live music venues and is home to South by Southwest (SXSW) and the ACL Music Festival, two of America’s largest media events. Austin is an enchant-ing city celebrated for its robust natural beauty and abundance of outdoor amenities, including Lady Bird Lake, Austin Hike and Bike Trail, Barton Creek, Lake Austin and numerous greenbelts. Central Texas boasts a cosmopolitan atmosphere without the big city stress and it is not hard to see why many people love to call Austin home.
AUSTIN FESTIVALREVENUE
F1 SXSW ACL X GAMES
22.6 MILLIONANNUAL AUSTIN MSA VISTORS
$6.7BANNUAL
ECONOMIC
IMPACT
FROM
VISITOR
SPENDING
ACCOLADESFastest Growing City
For 4th Consecutive Year- Forbes
#1 Job Market 2017- NerdWallet
No. 2 for Economic Performance- Milken Institute
Top 10 City for Millennials- WalletHub
#1 Next Biggest Boom Town- Forbes
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TECH JOBS ADDEDIN AUSTIN VS THE U.S.
RECENT ANNOUNCEMENTS
1,000 NEW JOBS3,600 NEW JOBS
1,200 NEW JOBS 500 NEW JOBS
500 NEW JOBS 600 NEW JOBS
G R O W T HSTEM JOBS
4TH HIGHESTGROWTH RATEIN THECOUNTRY
36.4%
# OF AUSTINCORPORATE
RELOCATIONSSINCE 2004
SILICON HILLSAustin’s economy continues to benefit from the technology sector boom that began in the 1990s, dubbing the metropol-itan area “Silicon Hills”. Austin is quickly emerging as a destination of choice for tech startups, as many of the nation’s top technology companies have a significant presence in Silicon Hills, including Apple, Google, Facebook, Oracle, National Instruments, Dell, IBM and Samsung to name a few.
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DISCLAIMERThis Offering Memorandum has been prepared by HFF for use by a limited number of recipients. All information contained 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, expressed or implied, as to the accuracy or completeness of the information contained herein. Further, the Offering Memorandum does not constitute a representation that no change in the business or affairs of the property or the Owner has occurred since the date of the preparation of the Offering Memorandum. All analysis and verification of the information contained in the Offering Memorandum is solely the responsibility of the recipient. HFF and Owner and their respective officers, directors, employees, equity holders and agents expressly disclaim any and all liability that may be based upon or relate to the use of the information contained in this Offering Memorandum.
Additional information and an opportunity to inspect the property will be made available upon written request to interested and qualified prospective investors.
Owner and HFF each expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers regarding the property and/or terminate discussions with any entity at any time with or without notice. Owner shall have no legal commitment or obligations to any recipient reviewing this Offering Memorandum or making an offer to purchase the property unless and until such offer is approved by Owner, a written agreement for the purchase of the property has been fully executed, delivered and approved by Owner and its legal counsel, and any obligations set by Owner thereunder have been satisfied or waived.
The recipient (“Recipient”) agrees that (a) the Offering Memorandum and its contents are confidential information, except for such information contained in the Offering Memorandum, which is a matter of public record, or is provided from sources available to the public (b) the Recipient, the Recipient’s employees, agents and consultants (collectively, the “need to know parties”) will hold and treat it in the strictest of confidence, and the Recipient and the need to know parties will not, directly or indirectly, disclose or permit anyone else to disclose its contents to any other person, firm, or entity without the prior written authorization of HFF and the Owner, and (c) the Recipient and the need to know parties will not use or permit to be used this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Owner or HFF or for any purpose other than use in considering whether to purchase the property. The Recipient and the need to know parties agree to keep this Offering Memorandum and all confidential information contained herein permanently confidential and further agree to use this Offering Memorandum for the purpose set forth above. If the Recipient has no interest in the property, or if in the future the Recipient or owner discontinue such negotiations, the Recipient will return this Offering Memorandum to HFF.
GARRETT GILLELANDDirector
DREW FULLERDirector
SCHAFER SMARTAnalyst
DEBT CONTACTKYLE SPENCERSenior Director