HFF Investment Overview

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A R L I N G T O N

•

T E X A S

O F F E R I N G

S U M M A R Y


INVESTMENT OVERVIEW Holliday Fenoglio Fowler, L.P. acting by and through Holliday GP Corp. a Texas licensed real estate broker (“HFF”) has been exclusively retained to offer an opportunity for qualified investors to purchase the fee simple interest in 404 Border (the “Property”), a unique, newly constructed asset located in Arlington, Texas. Built in 2016, the 135-unit Property is strategically positioned in the heart of Downtown Arlington, equidistant to both Dallas and Fort Worth. In addition, 404 Border is adjacent to the University of Texas at Arlington, the fourth largest university in Texas, and is just minutes from the only Whole Foods in Arlington. Furthermore, 404 Border is situated in the largest entertainment district in North Texas with venues including AT&T Stadium, Globe Life Park, Six Flags Over Texas, Six Flags Hurricane Harbor, and the $1.25 billion master-planned, mixed-use Texas Live! development. With its prime, central location, new ownership is afforded the opportunity to capitalize on the tremendous momentum in the area and further increase rental rates.

INVESTMENT HIGHLIGHTS NEWLY BUILT, CLASS “A” ASSET WITH TREMENDOUS LEASE UP –

FUTURE, WORLD-CLASS MIXED-USE DEVELOPMENT — Arlington

Completed in 2016, 404 Border is the first conventional apartment

recently announced plans for the new Texas Rangers ballpark as part of the

development in Arlington since 2003. The Class “A” asset offers beautiful

Texas Live! development. The $1.25 billion mixed-use project is projected

community amenities and interior finish outs that are not typically found in the

to deliver in 2020 and will include the new baseball stadium, more than

Arlington market including granite countertops, stainless steel appliances,

200,000 square feet of restaurants, retail, entertainment, as well as a new

faux wood floors, and tile backsplashes. Demand for higher quality product

302-room Loews Hotel.

in the market was evident by the fact that 126 units were leased without the Property having a clubhouse, and 86 units (64%) were leased before the Property was delivered.

DOWNTOWN ARLINGTON REVITALIZATION RESULTING IN WALKABILITY — In recent years, Downtown Arlington has expanded rapidly with several new restaurants and businesses, and as a result, 404 Border receives a Walk

ADJACENT TO UNIVERSITY OF TEXAS AT ARLINGTON – 404 Border

Score rating of 71. Recent projects such as Block 300, as well as the Urban

benefits from its immediate proximity to the University of Texas at Arlington

Union mixed-use project have helped reshape the Downtown Arlington area

(“UTA”), the fastest growing university in Texas. Since 2008, enrollment at

bringing in tenants that include Division Brewing, Hooligan’s Pub, Flying

the university has increased by 58% to nearly 40,000 students. Because UTA

Fish, Fuzzy’s Tacos, Legal Draft Beer Co., Mellow Mushroom Pizza, On Tap:

does not have a “live-on” campus policy, only 9% of the student population

Growler & Tap Room, Twisted Root Burger, and more.

lives on campus leaving strong demand for new product. UTA continues to invest in its campus to keep up with its expansive growth with major recent projects such as the $150 million Engineering Building, $160 million College Park District, and the $125 million Science, Engineering Innovation, and

ABUNDANCE OF NEIGHBORING EMPLOYMENT — 404 Border is in close proximity to several major employment centers including: •

an academic staff of 2,165

Research building. Potential investors have the opportunity to operate 404 Border as a conventional multifamily community or convert the Property to

• •

THE ENTERTAINMENT DISTRICT OF DALLAS/FORT WORTH – Arlington

AT&T Stadium is the $1.15 billion, world-class home of the Dallas Cowboys and host of major events and concerts

Globe Life Park is the current home of the MLB Texas Rangers and generates more than 2.7 million annual visitors

Six Flags Over Texas, a 212-acre theme park, and Six Flags Hurricane Harbor, a 47-acre water park, bring in over 4 million annual visitors

The Great Southwest Industrial Park, one of the largest industrial submarkets in Texas, spans more than 100 million square feet of

is home to the largest entertainment concentration in North Texas with the theme park destinations.

The General Motors Assembly Plant, consisting of 4.1 million square feet, has more than 4,100 employees

a student housing asset.

Property located just minutes away from major professional sports and

The University of Texas at Arlington employs 5,300 people and has

industrial space and employs over 60,000 people •

DFW Airport is the third busiest airport in the world and supportive of over 228,000 jobs


PROPERTY DESCRIPTION ADDRESS:

404 E Border St. Arlington, Texas 76010

YEAR BUILT:

2016

CURRENT OCCUPANCY:

91.1% (as of 6/6/17)

TOTAL UNITS:

135

AVERAGE UNIT SIZE:

814 square feet

RENTABLE SQUARE FOOTAGE:

109,881 square feet

NUMBER OF BUILDINGS:

1

NUMBER OF STORIES:

5

LAND AREA:

2.852 acres

DENSITY:

47 units per acre

PARKING:

70 carport spaces ($50 / month) 16 garages ($150 / month)

COMMUNITY FEATURES

88 open surface spaces

Resort-style pool with cabanas

Business center with MAC/ PC computers

Sky Box rooftop lounge

Direct and indirect garages

Outdoor social areas with barbeque grills

Dog park

State-of-the-art fitness facility

Carports

Valet trash pick-up

Coffee bar

Elegant clubhouse

174 total parking spaces or 1.29 spaces/unit

DFW ECONOMIC OVERVIEW

UNIT FEATURES •

ENERGYSTAR® electric stainless steel appliances

Full-size washer/dryer connections

Granite countertops

Exterior storage available

Wood-style flooring

9’ ceilings

Built-in bookshelves and computer desks*

Kitchen islands

Private patios and balconies*

Track and pendant lighting

Contemporary fixtures

Ceiling fans in living and bedrooms

Breakfast nooks

French doors*

Separate showers with glass enclosures*

129,700

NEW JOBS ADDED DURING YEAR-ENDING MAR. ‘16

578,590

PROJECTED POPULATION GROWTH FROM 2017 — 2021

260,730

PROJECTED NEW JOBS CREATED FROM 2017 — 2021

N. ARLINGTON APT. MARKET OVERVIEW

96.2%

OCCUPANCY AS OF 1Q 2017

9.2%

RENT GROWTH SINCE 1Q16

6.2%

FIVE YEAR AVERAGE RENT GROWTH

*in select units

UNIT MIX Units

Unit Description

% of Total

SF

Market Rent

Market Rent per SF

Effective Rent

Effective Rent PSF

6

Studio

4%

561

$950

$1.69

$925

$1.65

57

One Bedroom

42%

657

$1,128

$1.72

$1,108

$1.69

72

Two Bedroom

53%

959

$1,508

$1.57

$1,497

$1.56

100%

814

$1,323

$1.63

$1,311

$1.61

135


DALLAS CBD (19 MILES)

CENTREPORT BUSINESS PARK - 1,300 ACRES - MORE THAN 20,000 EMPLOYEES - 100+ COMPANIES

- 3RD BUSIEST AIRPORT IN THE WORLD - 228,000 JOBS

GREAT SOUTHWEST INDUSTRIAL PARK - 7,000+ACRES - OVER 105 MILLION SQUARE FEET

360 TEXAS

FORT WORTH CBD (15 MILES)

GENERAL MOTORS ASSEMBLY PLANT - 4,125 EMPLOYEES

HOME OF THE TEXAS RANGERS

- $1.25 BILLION DEVELOPMENT HOME OF THE DALLAS COWBOYS

LINCOLN SQUARE 306,608 SF RETAIL

MEADOWBROOK PARK GOLF COURSE

DECATUR

PROSPER

DENTON

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DOWNTOWN PONDER ARLINGTON

T. NS

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LITTLE ELM CORINTH ARGYLE

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AM

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LEWISVILLE RD

39,714 STUDENTS 2,165 ACADEMIC STAFF 420 ACRES

VA

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A UT

U BO

TROPHY CLUB

ROANOKE

Fort Worth Alliance Airport

HASLET

ADDITIONAL INFORMATION

SOUTHLAKE

KELLER

FLOWER MOUND Grapevine Lake

GRAPEVINE

CARROLLTON COPPELL

SAGINAW

WATAUGA

COLLEYVILLE

820

GREG TORO Director |‌ gtoro@hfflp.com |‌ 469.232.1995

LAKE 820 Fort Worth Associate Director |‌ mhiggins@hfflp.com Meacham|‌ Lake Worth WORTH Airport

NORTH RICHLAND HILLS

BEDFORD

EULESS

820

CHI SHOLM T

RA

PK

DE’ON COLLINS Director |‌ dcollins@hfflp.com | 469.232.1953 . WY 30 IL

DALLAS

30

DueBenbrook Diligence and Closing time periods Lake

University Park

Lakewoo

820 Lake Arlington

Uptown

CBD

30

30

BELT DALWORTHINGTON JUNCTION 404 Border is being offered on a free and clear FOREST HILL basis GARDENS BENBROOK OFFER DATE: TBD EDGECLIFF VILLAGE TIMING: All submissions must include specific timing related to 20

OFFERING:

Preston Hollow

Highland Park

Joint Reserve ADAM KRAUS Real Estate AnalystNAS |‌ akraus@hfflp.com |‌ 469.232.1942 Base Fort Worth

HILLS

DALLAS LOVE FIELD AIRPORT

IRVING

CITY WILLIAM JENNINGS Senior Real Estate Analyst |‌ wjennings@hfflp.comHALTOM |‌ 469.232.1998

For questions regarding debt structures WESTOVER on this Property, CBD please contact:

RICHA

HURST

312.528.3657

FORT WORTH

ADDISON

North Lake

TOLLWAY

BRIAN KELLY Managing Director |‌ bkelly@hfflp.com |‌ 312.980.3605

Dallas/Fort Worth International Airport

KE

Addison Airport

DALLAS NORTH

Mountain Lake

ROBERTO CASAS Senior Managing Director |‌ rcasas@hfflp.com |‌ 469.232.1939

ENT GEORGE BUSH T SID UR NP I

FARMERS BRANCH LAS COLINAS

For questions or additional information regarding this property, please contact any of the

WHITE SETTLEMENT

Y WA OLL

JUSTIN

RHOME

MIKE HIGGINS

NT BUR RAY

VILLAGE

BR

A ST EA

AZLE individuals below.

SAM

THE COLONY

PR E

ARLINGTON CITY HALL

FRISCO Lewisville Lake JPMORGAN CHASE BANK TOWER 267,258 SF HIGHLAND 98.6% LEASED

GRAND PRAIRIE ARLINGTON

20

OAK CLIFF

Mountain Creek Lake

45

One Victory Park 2323 Victory Avenue | Dallas, TX 75219 DUNCANVILLE Tel: 214.265.0880 | Fax: 214.265.956420 Joe Pool www.hfflp.com Lake

DE SOTO

LANCASTER

©2017 Holliday Fenoglio Fowler, LP (“HFF”) and HFF Securities LP (“HFFS”) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 24 offices nationwide and is a leading CEDAR HILLprovider of commercial real estate and capital markets services to the U.S. commercial real estate industry. HFF together with its affiliate HFFS offer clients a fully integrated national capital markets platform including debt placement, investment sales, advisory services, structured finance, private equity, loan sales, and commercial loan servicing. CROWLEY Holliday Fenoglio Fowler, L.P. (“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 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 MANSFIELD BURLESON 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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