NORTHWEND SHOPPING CENTER 9515 NORTH LAMAR BOULEVARD • AUSTIN, TEXAS
64,099 SF VALUE-ADD SHOPPING CENTER IN NORTH CENTRAL AUSTIN
INVESTMENT SUMMARY
NORTHWEND SHOPPING CENTER
EXECUTIVE SUMMARY
HFF is pleased to present the opportunity to purchase Northwend Shopping Center (the “Property”), a 64,099 square foot retail strip center prominently located along North Lamar Boulevard in central Austin. The Property is located in an established retail node at a lighted intersection along one of the busiest north/south arteries in Austin. Boasting superior infill demographics, the Property features a population of approximately 310,000 within a five mile radius and estimated population growth of 13% from 20172022. Currently 96% leased to a diverse mix of E-commerce resistant tenants, Northwend Shopping Center features strong in-place cash flow with current rents 27% below market, offering a substantial mark-to-market opportunity. ECONOMICS BASE RENT
$860,011
EXPENSE RECOVERY REVENUE
$513,703
EFFECTIVE GROSS REVENUE OPERATING EXPENSES
$535,660
NET OPERATING INCOME
$735,939
ROUND ROCK
CEDAR PARK
1
PROPERTY
NORTHWEND SHOPPING CENTER 9515 NORTH LAMAR BLVD AUSTIN, TX 78753
SIZE
64,099 SQUARE FEET
OCCUPANCY
96%
MAJOR TENANTS
RODEO NIGHT CLUB
10,500 SF
DOLLAR TREE
8,640 SF
TAJ INTERNATIONAL GROCERS
8,379 SF
AUSTIN CBD
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Page 3
$1,271,599
NORTHWEND SHOPPING CENTER
OCCUPANCY
96.5%
THE DOMAIN
MARKET WIDE
ARBORETUM
RETAIL RENTAL RATES
13% INCREASE
NORTH BURNET
SINCE 2014
3 MILE
NORTH LAMAR
1 MILE
5 MILE
GATEWAY
26%
8.6 MILES TO DOWNTOWN
CRESTVIEW
HIGHLAND
DEMOGRAPHICS
1-Mile
3-Mile
5-Mile
Population 2017 Est.
29,907
137,397
310,421
Population Growth 2010-2017
SUPERIOR INFILL LOCATION • Northwend Shopping Center is situated in one of Austin’s most dynamic growth corridors, boasting a dense population of 310,000 within a five mile radius that has grown over 13% since 2010
2017 EST. 1-MILE POPULATION 2017 Est. 1 Mile Population by Ethnicity BY ETHNICITY
• North Lamar is one of only three major north/south arteries in central Austin, ensuring increased consumer traffic as populations in one of the country’s hottest markets continue to expand • A largely Hispanic demographic has increased competition amongst retailers for space in the surrounding retail node as retailers try to attract a market segment that will account for 24% of the US population by 2040, a 25% increase from today - Nielsen • As Austin’s CBD continues to swell, lower cost housing options north and south of downtown have been absorbed by the growing workforce. The Property’s proximity to downtown and prime location make it an excellent candidate for long term repositioning and potential redevelopment
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2017 AUSTIN ACCOLADES
ALLANDALE
INVESTMENT HIGHLIGHTS
9%
11%
13%
Median Household Income
$35,416
$46,414
$53,928
Average Household Income
$48,269
$61,719
$75,582
#1 CITY FOR REAL ESTATE INVESTMENT FASTEST GROWING CITY IN THE COUNTRY TOP FIVE BEST CITIES FOR NEW JOBS
ESTABLISHED REGIONAL RETAIL INTERSECTION
STRONG MARKET FUNDAMENTALS
• Situated at the corner of Rutland Drive and North Lamar Blvd., the Property is positioned at the epicenter of an established regional retail node
• Market wide retail occupancy rates are currently 96.5%, with a five year trailing average of 95.1%
• A highly productive HEB situated across North Lamar generates significant consumer traffic to the area
Hispanic or Latino
White
Black
Other
ANNUAL ABSORPTION HAS OUTPACED DELIVERIES BY A TOTAL OF 26% SINCE 2010
• Benefiting from a lighted intersection, the Property offers additional synergies created with two new adjacent restaurants in Burger King and Los Portales, as well as neighboring McDonalds, Taco Bell, Wells Fargo and La Mexicana Supermercado
• Over that same period, retail rental rates in Austin have increased 13% from $17.53 NNN per year to $20.20 NNN per year • Annual absorption has outpaced deliveries by a total of 26% since 2010 • 2017 Austin accolades include: 1) “#1 City for Real Estate Investment,”–Urban Land Institute 2) “Fastest Growing City in the Country”-Forbes 3) “Top Five Best Cities for New Jobs.”-Forbes
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NORTHWEND
Longspur Crossing Apartments 252 Units (Not Part of Sale)
SHOPPING CENTER
SITE PLAN Occupied space since 1992
124 1,800 SF
100
136
142 144
160
158
156
154
150
Ofc Evtr
230
146 779 SF
Recent renewal extends term through Dec-2022
184 120 200 (Above)
118
168
114
DETENTION AREA
170 174
112 110A Longspur Crossing Apartments 252 Units (Not Part of Sale)
110
All leases signed in the last 12 months have been over $18.00 PSF NNN
108
182
102
· 30% of center rolls over in the next two years · Average rates 27% below market
136
142 144
VALUE ENHANCEMENT OPPORTUNITY
146 779 SF
100
160
158
156
154
150
Ofc Evtr
230
124 1,800 SF
184 120 200 (Above)
118
168
114
110
170 174
112 110A
182
108
102
New Burger King Under Construction Suite 102 108 110A 112 114 118 120 230 124 100 136 142
Tenant Marisco Grill Star Bright Cleaners Herbalife America Transfers, Inc. Video Mejico Benito Wireless Staff Zone College Roadhouse Available K Gifts Royal Vision Paris Hair Design
Northwend Shopping Center has a diverse tenant mix consisting of financial, restaurant, entertainment, medical and discount, limiting industry and recession exposure
Square Feet 3,000 1,500 900 900 1,800 893 1,481 3,500 1,800 3,500 960 889
Suite 144 200 146 160 158 150 - 156 184 168 170 - 174 182 110
Tenant Stephanie's Boutique Rodeo Night Club Available Star Bright Cleaners Arbor Dental Taj International Grocers Quinceanera Chicoine Chiropractic Metro PCS Jackson Hewitt Dollar Tree
N LAMAR BLVD (39,000 VEHICLES PER DAY)
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Square Feet 830 10,500 779 2,909 1,230 8,379 4,274 1,800 1,835 1,800 8,640 64,099
New Los Portales: 16 locations nationwide
Established HEB across the street
E-COMMERCE RESISTANT INCOME STABILITY
• In-place rental rates are approximately 27% below that of • Over 77% of the Property is E-Commerce resistant, comparable properties in the submarket and over 30% consisting of entertainment, grocery,Established restaurant and HEB across the street of the Property’s tenants come up for renewal over the medical uses, among others N LAMAR BLVD (39,000 VEHICLES PER DAY) next two years, which allows a new owner to dramatically • Currently 96% occupied, the Property offers a wide array increase NOI within a short timeframe of local and national credit tenancy that caters directly to • With market vacancy of 3.5%, the leasing momentum the surrounding demographic identity has been extraordinary, exhibited by the current owner • This diverse tenant base has formed a destination retail executing 22,123 SF of space (34% of the Property) since center, increasing tenant inter-dependence upon one the start of 2015 another, while offering the ability to push rates during • All leases that were signed in 2016-2017 have achieved renewal negotiations rents over $18.00/SF NNN, showcasing the center’s ability to push rental rates • Limited developable sites, population density, and skyrocketing construction costs create high barriers to entry along the entire North Lamar corridor, limiting competition in an already high occupancy environment
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NORTHWEND SHOPPING CENTER DREW FULLER
KELSEY ROOP
JOHN TAYLOR
Associate Director
Director
Managing Director
512.532.1931
512.532.1927
512.532.1950
[email protected]
[email protected]
[email protected]
MICHAEL RESTIVO
BENTLEY SMITH
CASEY WENZEL - DEBT CONTACT
Analyst
Analyst
Associate Director
512.532.19374
512.532.1971
512.532.1923
[email protected]
[email protected]
[email protected]
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