REPRESENTATIVE PHOTO EXCLUSIVE OFFERING $18,172,000-6.50% CAP EXP DALLAS 214.522.7200 JOE CAPUTO joe@exp1031.com BOB MOORHEAD bob@exp1031.com property. 142,229+ SF building on 24.80+ acre site. tenant. Lessee: FedEx Ground, 2 nd largest small-package ground carrier in North America. Subsidiary of FedEx Corporation (NYSE: FDX) lease structure. New, 10-year, corporate absolute NNN lease with rent bump in year 6. location. The subject property is located along McKinney Falls Parkway near Austin Bergstrom International Airport. The site is also just south of State Highway 71 (49,643 Cars / Day) and Interstate 35 (160,000 Cars / Day). Austin Bergstrom International Airport serves over 9 million passengers annually. The immediate trade area also has the advantage of railroad access. The low distribution costs associated with the intermodal access of the trade area has attracted a significant influx of industrial development.
Table of contents Disclaimer PAGE 1: PAGE 2: PAGE 3: PAGE 4: PAGE 5: PAGE 6-7: PAGE 8: PAGE 9-10: PAGE 11: COVER TABLE OF CONTENTS DISCLAIMER INVESTMENT TENANT LEASE OVERVIEW PRICING & LOAN MATRIX PROPERTY PHOTOS AERIAL PHOTOS LOCATION OVERVIEW LOCATION MAPS DEMOGRAPHICS REPRESENTATIVE PHOTO Disclaimer EXP Realty Advisors, Inc. ( Agent ) has been engaged as an agent for the sale of the property located at 4117 McKinney Falls Parkway, Austin, TX the owner of the Property ( Seller ). The Property is being offered for sale in an as-is, where-is condition and Seller and Agent make no representations or warranties as to the accuracy of the information contained in this Offering Memorandum. The enclosed materials include highly confidential information and are being furnished solely for the purpose of review by prospective purchasers of the interest described herein. The enclosed materials are being provided solely to facilitate the prospective investor s own due diligence for which it shall be fully and solely responsible. The material contained herein is based on information and sources deemed to be reliable, but no representation or warranty, express or implied, is being made by Agent or Seller or any of their respective representatives, affiliates, officers, employees, shareholders, partners and directors, as to the accuracy or completeness of the information contained herein. Summaries contained herein of any legal or other documents are not intended to be comprehensive statements of the terms of such documents, but rather only outlines of some of the principal provisions contained therein. Neither the Agent nor the Seller shall have any liability whatsoever for the accuracy or completeness of the information contained herein or any other written or oral communication or information transmitted or made available or any action taken or decision made by the recipient with respect to the Property. Interested parties are to make their own investigations, projections and conclusions without reliance upon the material contained herein. Seller reserves the right, at its sole and absolute discretion, to withdraw the Property from being marketed for sale at any time and for any reason. Seller and Agent each expressly reserves the right, at their sole and absolute discretion, to reject any and all expressions of interest or offers regarding the Property and/or to terminate discussions with any entity at any time, with or without notice. This offering is made subject to omissions, correction of errors, change of price or other terms, prior sale or withdrawal from the market without notice. Agent is not authorized to make any representations or agreements on behalf of Seller. Seller shall have no legal commitment or obligation to any interested party reviewing the enclosed materials, performing additional investigation and/or making an offer to purchase the Property unless and until a binding written agreement for the purchase of the Property has been fully executed, delivered, and approved by Seller and any conditions to Seller s obligations hereunder have been satisfied or waived. By taking possession of and reviewing the information contained herein, the recipient agrees that (a) the enclosed materials and their contents are of a highly confidential nature and will be held and treated in the strictest confidence and shall be returned to Agent or Seller promptly upon request; and (b) the recipient shall not contact employees or tenants of the Property directly or indirectly regarding any aspect of the enclosed materials or the Property without the prior written approval of the Seller or Agent; and (c) no portion of the enclosed materials may be copied or otherwise reproduced without the prior written authorization of Seller and Agent. 2
Investment overview Initial Lease Term: 10-Years PRICE: $18,172,000 CAP RATE: 6.50% NET OPERATING INCOME: $1,181,136 BUILDING AREA: LAND AREA: YEAR BUILT : 2008 OWNERSHIP: Loan underwriting 142,229 + Square Feet 24.80+ Acres Fee Simple Interest Combined Loan Amount $11,513,757 Loan to Value 63% Combined Debt Service $831,767 Down Payment $6,657,566 Cash Flow $349,369 Cash on Cash 5.25% Loan Amount (First Loan) $5,113,394 Interest Rate 6.50% Amortization 25 Years Debt Service $414,312 Loan Amount (Second Loan) $3,922,364 Interest Rate 4.50% Amortization 18 Years Debt Service $318,335 Loan Amount (Third Loan) $2,478,000 Interest Rate 4.00% Amortization Interest Only Debt Service $99,120 Rent Commencement: October 2012 Lease Expiration: October 2022 Lease Type: Rent Increases: 2.4% in Lease Year 6 Year 1-6 Annual Rent (Current): $1,181,136 Tenant overview FedEx Ground FedEx Ground The FedEx Ground business segment is the 2nd largest small-package ground carrier in North America. The Company has a network of more than 500 distribution hubs and local pick-up and delivery terminals throughout the United States and Canada. FedEx Ground handles about 2.3 million shipments per day. FedEx Corporation www.fedex.com Absolute NNN Year 6-10 Annual Rent: $1,209,396 FedEx Corporation provides transportation, e-commerce, and business services in the United States and internationally. It operates in four segments: FedEx Express, FedEx Ground, FedEx Freight, and FedEx Services. The FedEx Express segment offers various shipping services for the delivery of packages and freight. This segment also provides international trade services specializing in customs brokerage, and ocean and air freight forwarding services; customs clearance services, as well as global trade data, an information tool that allows customers to track and manage imports; and international trade advisory services, including assistance with the customs-trade partnership against terrorism program, as well as publishes customs duty and tax information in various customs areas. FedEx Freight segment offers less-than-truckload freight services, as well as freight-shipping services. As of May 31, 2012, this segment operated approximately 58,000 vehicles and trailers from a network of 366 service centers. The FedEx Services SUBJECT PROPERTY segment provides sales, marketing, information technology, communications, customer PRIOR service TO PANDA support, EXPRESS and EXPANSION other back-office support services; and access to copying and digital printing through retail and Web-based platforms, signs and graphics, professional finishing, computer rentals, and a range of ground shipping and time-definite express shipping services. The company was founded in 1971 and is headquartered in Memphis, Tennessee. Over the previous 12-month period the company had $43.86 billion in revenue, net income available to common shareholders of $1.80 billion, operating cash flow of $4.79 billion. 3
PROPERTY PHOTOS 4
Aerial photo Ben White Business Park Southpark Corporate MoPac Business Park Southpark Commerce Center Center Omni Business Park Austin Bergstrom International Airport 5
Aerial photo 6
Location overview IMMEDIATE TRADE AREA The subject property is located along McKinney Falls Parkway near Austin Bergstrom International Airport. The site is also just south of State Highway 71 (49,643 Cars / Day) and Interstate 35 (160,000 Cars / Day). Austin Bergstrom International Airport serves over 9 million passengers annually. The immediate trade area also has the advantage of railroad access. The low distribution costs associated with the intermodal access of the trade area has attracted a significant influx of industrial development. The site is across from the Omni Business Park and near the Southpark Corporate Center, Southpark Commerce Center, Ben White Business Park, and MoPac Business Park. 9,100 people are employed in the manufacturing and transportation industries within a 3-mile radius of the subject property. The recent rapid residential growth near the site is expected to continue. The population within a 1-mile radius is expected to increase by 24.4% over the next 5-years. AUSTIN, TX Austin is the capital of Texas and the seat of Travis County. Austin has a population of 786,386 and is the cultural and economic center of the Austin Round Rock-San Marcos MSA. The city is located in Central Texas on the eastern edge of the American Southwest, and is the 4 th largest city in Texas and the 15 th most populous city in the United States. From 2000 to 2006, Austin was the 3 rd fastest growing city in the nation. Austin is considered to be a major center for high tech. Thousands of graduates each year from the engineering and computer science programs at the University of Texas at Austin provide a steady source of employees that help to fuel Austin's technology and defense industry sectors. The region's rapid growth has led Forbes to rank the Austin metropolitan area #1 among all big cities for jobs for 2012 in their annual survey. High-tech companies with operations in Austin include Nvidia, 3M, Apple, Hewlett-Packard, Google, AMD, Applied Materials, Cirrus Logic, Cisco Systems, Flextronics, ebay/paypal, Bioware, Blizzard Entertainment, Hoover's, Intel Corporation, National Instruments, Samsung Group, Buffalo Technology, Silicon Laboratories, Xerox, Oracle, Hostgator, HomeAway, and United Devices. Austin is home to the University of Texas at Austin (UT), the flagship institution of the University of Texas System with over 38,000 undergraduate students and 12,000 graduate students. The university consistently ranks consistently among the top 50 "National Universities by U.S. News and World Report. UT has annual research expenditures of over $640 million and has the highest-ranked business, engineering, and law programs of any university in the state of Texas. Other institutions of higher learning in Austin include Concordia University, St. Edward's University, Seminary of the Southwest, Acton School of Business, Austin Graduate School of Theology, Art Institute of Austin, and Austin Conservatory. AUSTIN-ROUND ROCK-SAN MARCOS METROPOLITAN AREA The Austin Round Rock-San Marcos Metropolitan Statistical Area is also referred to as Central Texas or Greater Austin, and consists of 5 counties. The population of Austin-Round Rock-San Marcos was 1,769,952 in 2009, making it one of the 5 fastest-growing metro areas in the nation and the 35th-largest MSA in the United States. Thousands of graduates each year from the engineering and computer science programs at The University of Texas at Austin provide a steady source of employees that help to fuel Austin's technology and defense industry sectors. Austin's largest employers include Dell, the U.S. Federal Government, IBM, St. David's Healthcare Partnership, Seton Family of Hospitals, Texas State University San Marcos, The University of Texas, 3M, Apple Inc., Hewlett- Packard, Google, Cisco Systems, ebay/paypal, Blizzard Entertainment, Hoover's, Intel Corporation, National Instruments, and Samsung Group. The proliferation of technology companies has led to the region's nickname, The Silicon Hills", and spurred development that greatly expanded the city. Central Texas is also emerging as a hub for pharmaceutical and biotechnology companies. About 85 companies from this industry are based in Austin. The city was ranked by the Milken Institute as the #12 biotech and life science center in the United States. The Greater Austin area is home to many companies, including the headquarters of four Fortune 500 corporations: Whole Foods Market, Freescale Semiconductor, Forestar Group, and Dell. In 2010, 43% of adults in the City of Austin held college degrees, fourth place among the 77 largest cities in the U.S. On average, 35% of the MSA s population is college graduates, compared to 23% for all of Texas and 24% for the entire U.S. 7
Location map 8
Location map 9
Demographics Demographic snapshot Radius 1 Mile 3 Mile 5 Mile 2016 Projection 2,739 36,115 156,963 2011 Estimate 2,201 33,498 142,481 2010 Census 2,033 33,109 140,138 Growth 2011-2016 24.40% 7.80% 10.20% Growth 2010-2011 8.30% 1.20% 1.70% Households: 2016 Projection 828 11,468 55,316 2011 Estimate 672 10,655 50,207 2010 Census 621 10,539 49,368 Growth 2011-2016 23.30% 7.60% 10.20% Growth 2010-2011 8.20% 1.10% 1.70% Owner Occupied 501 3,805 18,076 Renter Occupied 171 6,850 32,131 2011 Avg Household Income $46,900 $43,877 $47,267 2011 Med Household Income $30,489 $35,419 $36,399 2011 Per Capita Income $14,711 $15,863 $17,536 2011 Households by Household Inc: Income Less than $15,000 144 2,064 8,281 Income $15,000 - $24,999 107 1,387 7,512 Income $25,000 - $34,999 133 1,793 8,081 Income $35,000 - $49,999 84 2,006 9,290 Income $50,000 - $74,999 123 2,160 9,687 Income $75,000 - $99,999 23 689 3,843 Income $100,000 - $149,999 32 373 2,340 Income $150,000 - $199,999 5 95 526 Income $200,000+ 20 87 646 Downtown Austin, TX Austin Bergstrom International Airport 10