Duval Center - Austin, TX

DUVAL CENTER AUSTIN, TX

PRICING & FINANCIAL ANALYSIS

D U VAL C E NT E R - AU ST IN, T X

Duval Center 4212 Duval St Austin, TX 78751

OFFERING SUMMARY Price Cap Rate Net Operating Income Price PSF Occupancy Years Built Gross Leasable Area Lot Size

$7,000,000 5.48% $383,400 $732.45 100.0% Bldg 1 - 1950 / Bldg 2 - 1955 9,557 SF 0.45 Acres

F I N A N C I A L A N A LY S I S

2

PRICING & FINANCIAL ANALYSIS

D U VAL C E NT E R - AU ST IN, T X

PROJECTED INCOME & EXPENSES

CURRENT

Base Rent Percentage Rent GROSS POTENTIAL RENT

PSF

$335,400

$35.09

$48,000

$5.02

$383,400

$40.12

Expense Reimbursements CAM Recoveries

EXPENSES

CURRENT

PSF

$38,529

$4.03

$5,726

$0.60

Waste Removal

$11,694

$1.22

Real Estate Taxes Insurance CAM

$50,009

$5.23

Maintenance & Repairs

$8,730

$0.91

$6,000

$0.63

Professional Fees

$3,785

$0.40

$5,726

$0.60

Overflow Parking Agreeement

$25,800

$2.70

$38,529

$4.03

$50,009

$5.23

Total Expense Reimbursements

$100,264

$10.49

Management Fee

$6,000

$0.63

EFFECTIVE GROSS REVENUE

$483,664

$50.61

Total Expenses

$100,264

$10.49

$50,009

$5.23

$6,000

$0.63

$5,726

$0.60

$38,529

$4.03

Total Recoverable Expenses

$100,264

$10.49

Net Operating Income

$383,400

$40.12

Management Fee Recoveries Insurance Recoveries Real Estate Tax Recoveries

Total CAM 1.20%

Operating Expenses Total CAM Management Fee Total Insurance Total Real Estate Taxes

Capitalization Rate Capital Reserves at $0.15 PSF Cash Flow before Debt Service Market Loan Cash Flow after Debt Service Cash-on-Cash Return

1.20%

5.48% $1,434 $381,966 $377,526 $4,440 0.34%

F I N A N C I A L A N A LY S I S

3

RE NT RO L L

Tenant

D U VAL C E NT E R - AU ST IN, T X

Under

Covered

Roof

Patio

% OF SQFT

SQFT

Lease Dates

Minimum Rent

Recoveries

% Rent

Total

Start

End

Annual

Monthly

PSF

Annual

PSF

Annual

Revenue

% of Revenue

Quack's 43rd St Bakery

2429

2,629

27.51%

12/17

11/27

$90,000

$7,500

$34.23

$28,074

$10.68

$30,000

$148,074

30.62%

30.62%

Julio's (Stella)

1136

2,111

22.09%

06/18

05/23

$60,000

$5,000

$28.42

$18,047

$8.55

$6,000

$84,047

17.38%

17.37%

Dolce Vida

1314

1,929

20.18%

-

-

$72,000

$6,000

$37.33

$20,053

$10.40

$6,000

$98,053

20.27%

20.27%

Antonelli's Cheese Shop

756

756

7.91%

10/14

09/20

$29,400

$2,450

$38.89

$10,026

$13.26

$0

$39,426

8.15%

8.14%

Pending Lease

1287

1,287

13.47%

07/14

06/18

$51,600

$4,300

$40.09

$13,536

$10.52

$6,000

$71,136

14.71%

14.71%

The Cakery

845

845

8.84%

11/15

10/19

$32,400

$2,700

$38.34

$10,528

$12.46

$0

$42,928

8.88%

8.87%

7,767

1,790

9,557

100%

$335,400

$27,950

$48,000

$483,664

100.00%

Occupied

9,557

100.0%

Available

0

0.0%

9,557

100.0%

Total Count/

$100,264

GLA

Total Avg Rent

F I N A N C I A L A N A LY S I S

4

ESTIMATED REIMBURSEMENT REVENUE

Tenant

SQ FT

D U VAL C E NT E R - AU ST IN, T X

CAM

Management Fee

Insurance

Real Estate Taxes

Total Recovery

Monthly

PSF

Monthly

PSF

Monthly

PSF

Monthly

PSF

Monthly

PSF

Quack's 43rd St Bakery

28.00%

$1,167

$5.33

$140

$0.64

$134

$0.61

$899

$4.10

$2,339

$10.68

Julio's (Stella)

18.00%

$750

$4.26

$90

$0.51

$86

$0.49

$578

$3.29

$1,504

$8.55

Dolce Vida

20.00%

$833

$5.18

$100

$0.62

$95

$0.59

$642

$3.99

$1,671

$10.40

Antonelli's Cheese Shop

10.00%

$417

$6.61

$50

$0.79

$48

$0.76

$321

$5.10

$836

$13.26

Pending Lease

13.50%

$563

$5.25

$68

$0.63

$64

$0.60

$433

$4.04

$1,128

$10.52

The Cakery

10.50%

$438

$6.21

$53

$0.75

$50

$0.71

$337

$4.79

$877

$12.46

TOTALS

100%

$4,167

$500

$477

$3,211

$8,355

Lease Notes: Reimbursements are based on the above Pro-Rata Percentages per the leases not the GLA % of the total square footage of the center.

F I N A N C I A L A N A LY S I S

5

LEASE PROVISIONS

Tenant

D U VAL C E NT E R - AU ST IN, T X

Base Rental Increases

SQ FT

Renewal Options

User Restrictions & Exclusive Rights

Termination Rights

Sales Reporting

Date

Monthly

PSF

Options

Date

PSF

2,629

12/1/2022 12/1/2023 12/1/2024 12/1/2025 12/1/2026

$7,600 $7,700 $7,800 $7,900 $8,000

$34.69 $35.15 $35.60 $36.06 $36.52

1 x 10

12/1/2027

MKT

-

-

-

2,111

6/1/2019 6/1/2020

$5,000 $6,150

$28.42 $34.96

1x5

6/1/2023 6/1/2024 6/1/2025 6/1/2026 6/1/2027

$35.81 $36.67 $37.52 $38.37 $39.22

-

-

-

Dolce Vita

1,929

-

-

-

-

-

-

-

-

-

Antonelli's

756

-

-

-

1x5

10/1/2020

MKT

-

-

-

Pending Lease

1,287

-

-

-

-

-

-

-

-

-

The Cakery

845

-

-

-

-

-

-

-

-

-

Quack's Bakery

Julio's

TOTAL

9,557

F I N A N C I A L A N A LY S I S

6

TE NA NT INF ORMAT I ON

D U VAL C E NT E R - AU ST IN, T X

DBA

Quack’s

Entity on Lease

Quack’s 43rd Bakery, LLC

Corporate/Franchise

Corporate

Locations

1

Credit Rating

Not Rated

Public/Private

Private

Line of Business

Quack’s is a full service espresso cafe and a from scratch bakery. They pride themselves on being Austin’s first coffeehouse. Quack’s continues to provide late night study aids and that early morning caffeine fix their customers crave and hope to do so for for another 30 years. The bakery offers a wide range of desserts that are all made on location.

DBA

Antonelli’s Cheese Shop

Entity on Lease

Antonelli’s Cheese LLC

Corporate/Franchise

Corporate

Locations

1

Credit Rating

Not Rated

Public/Private

Private

Line of Business

Local cheese shop with focus on sourcing the finest artisanal cheese and providing cut to order service in a relaxed, “taste before you buy” experience.

DBA

Julio’s

Entity on Lease

Julio’s Restaurant, Inc

Corporate/Franchise

Corporate

Locations

1

Credit Rating

Not Rated

Public/Private

Private

Line of Business

Julio’s Cafe has been serving fresh Mexican food since 1983. Julio’s is famous for roasted chicken, breakfast tacos, green enchiladas, and the best soup in town.

PROPERTY DESCRIPTION

7

I N VE S TMENT HI GHLI GHT S

•

Rare Infill Location: This is a high pride of ownership location.

The Property is situated in the Hyde Park neighborhood, located approximately 1 mile from the University of Texas campus.

•

Built-In Upside: Several of the current tenants have contractual rental escalations structured in their leases as well as percentage rent virtually guaranteeing future income growth over the next several years.

•

Virtually Immune to Competition: Duval Center is one of the only properties zoned commercial in the Hyde Park neighborhood. The tenancy of Duval Center consists of restaurant oriented uses, mitigating the risk of e-commerce competition, while also filling the “experiential retail” need expected by consumers today.

•

Brand New Roof: The roofing was just replaced and under a 25 year warranty (with the exception of the laundromat which will be replaced as the space is re-tenanted).

•

Tremendous Trade Area with High Growth & Incomes: High growth has been consistent in this area as evidenced since 2010, with 23.31% growth occurring within a onemile radius. This same trade area has indications of 10.31% growth projected over the next five years. Within a three-mile radius of Duval Center, there are currently 176,422 residents, which increases to 390,681 residents within five miles of the Property. Additionally, the household incomes of the resident population within a three and five miles radius are $90,763 and $90,525 respectively, which is about 1.2 times the national average.

•

Remodeling: Projects are in the process of being permitted that should dramatically increase sales.

•

Outstanding Tenant Longevity: The Property has seen high tenant retention with 83% of the current tenant lineup at the Property for 25 years or more. Quacks bakery has been operating for 34 years at this location, Julio’s for 26 years and Dolce Vida for 25 years. The tenant’s commitment to the location provides investors with a stable cash flow stream and a strong platform to grow income.

D U VAL C E NT E R - AU ST IN, T X

PROPERTY DESCRIPTION

8

S I T E PL A N

D U VAL C E NT E R - AU ST IN, T X

Overflow Parking

Quack’s Bakery

E 43rd St

The Cakery

Antonelli’s Cheese Shop

Pending Lease

Dolce Vita

Julio’s Cafe

Duval St

PROPERTY DESCRIPTION

9

A E R I AL MA P

DU

VA L

ST

D U VAL C E NT E R - AU ST IN, T X

7,754 VPD

225,578 VPD

PROPERTY DESCRIPTION

10

L E A SE COMPA RABLES

Property Duval Center  4212 Duval St Austin, TX

D U VAL C E NT E R - AU ST IN, T X

GLA

Yr Built/ Renovated Occupancy

9,557

Major Tenants

Available SF

Rental Rates

NNN

100.0%

Quack's 43rd St Bakery, Dolce Vida, Antonelli's Cheese Shop, The Cakery

0

$29.00 - $40.00

$7.75

2915 Guadalupe St Austin, TX

5,130

1965

100.0%

The Halal Guys, I Luv Vintage

0

$34.00-$38.00

$7.84

Pecan Plaza 2 3706 Guadalupe St Austin, TX

5,760

2005

100.0%

Starbucks, Little Caesar's Pizza, Yaya Café, Speedy Cash Loans

0

$30.00 - $35.00

$12.00

3

3701 Guadalupe St Austin, TX

6,991

1976

85.3%

Domino's, Walgreens Pharmacy, Root Dentistry, Body Brite

1,025

$26.00 - $29.00

$12.50

4

3204 Guadalupe St Austin, TX

7,139

1920

100.0%

ThunderCloud Subs, Zig Zag Salon, Bicycle Sport Shop

0

$24.00 - $27.00

$10.00

Guadalupe 34 5 3401 Guadalupe St Austin, TX

15,090

1949 / 1985

100.0%

Anytime Fitness, L7 Salon, Brazilia Spa, Agave Properties

0

$20.00 - $25.00

$7.00

1

PROPERTY DESCRIPTION

11

L E A SE COMPA RABLES

D U VAL C E NT E R - AU ST IN, T X

Duval Center 1

2915 Guadalupe St

2

Pecan Plaza

3

3701 Guadalupe St

4

3204 Guadalupe St

5

Guadalupe 34

2 3 5 4

1

PROPERTY DESCRIPTION

12

LO C AL MA P

D U VAL C E NT E R - AU ST IN, T X

PROPERTY DESCRIPTION

13

REG IONA L MA P

D U VAL C E NT E R - AU ST IN, T X

PROPERTY DESCRIPTION

14

M A R KET S U MMARY

D U VAL C E NT E R - AU ST IN, T X

Austin, TX

OVERVIEW Austin, Texas is the capital of Texas and the seat of Travis County. Located in Central Texas, Austin is the 11th-most populous city in the United States and the fourth-most populous city in Texas. It was the third-fastest-growing large city in the nation from 2000 to 2006. Austin is also the second largest state capital in the United States. Austin had a July 1, 2013 population of 885,400 (U.S. Census Bureau estimate). The city is the cultural and economic center of the Austin–Round Rock metropolitan area, which had an estimated population of 1,883,051 as of July 1, 2013.

Austin is considered to be a major center for high tech. 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.

The Wall Street Journal Marketwatch ranked the area Number One for growing businesses. By 2013, Austin ranked No. 14 on Forbes’ list of the Best Places for Business and Careers (directly below Dallas, No. 13 on the list). As a result of the

high concentration of high-tech companies in the region, Austin was strongly affected by the dotcom boom in the late 1990s and subsequent bust.

Austin’s largest employers include the Austin Independent School District, the City of Austin, Dell, the U.S. Federal Government, Freescale Semiconductor (spun off from Motorola in 2004), IBM, St. David’s Healthcare Partnership, Seton Family of Hospitals, the State of Texas, the Texas State University, and the University of Texas at Austin. Other high-tech companies with operations in Austin include 3M, Apple, Hewlett-Packard, Google, Qualcomm, Inc., AMD, Applied Materials, Cirrus Logic, ARM Holdings, Cisco Systems, Electronic Arts, Flextronics, Facebook, eBay/PayPal, Bioware, Blizzard Entertainment, Hoover’s, Intel Corporation, National Instruments, Rackspace, RetailMeNot, Rooster Teeth, Spansion, Buffalo Technology, Silicon Laboratories, Xerox, Oracle, Hostgator, Samsung Group, HomeAway, and United Devices.

PROPERTY DESCRIPTION

15

D E M OG RA PHIC STAT I ST I CS

D U VAL C E NT E R - AU ST IN, T X

1 Mile

3 Mile

5 Mile

25,567 23,273 19,879 9.86% 17.07% 3,409

194,615 176,422 143,067 10.31% 23.31% 47,575

431,427 390,681 317,247 10.43% 23.15% 141,906

19,345 695 127 2,401 16 688 7

139,959 16,614 2,053 13,067 128 4,600 77

312,428 40,050 5,539 22,978 329 9,357 145

13,450 12,274 10,632 9.58% 15.44% 2,731 9,543 $80,947 $52,595

82,823 74,881 60,159 10.61% 24.47% 26,988 47,893 $90,763 $59,742

179,710 162,630 131,724 10.50% 23.46% 61,717 100,913 $90,525 $59,455

3,168 2,729 2,005 1,195 702 586 853 1,035

18,238 14,208 11,862 7,009 6,329 3,902 4,962 8,374

35,703 34,229 27,302 15,618 13,714 8,244 10,017 17,804

Population: 2023 Projection 2018 Estimate 2010 Census Growth 2018-2023 Growth 2010-2018 2018 Population Hispanic Origin

2018 Population by Race: White Black Am. Indian & Alaskan Asian Hawaiian & Pacific Island Other U.S. Armed Forces:

Households: 2023 Projection 2018 Estimate 2010 Census Growth 2018 - 2023 Growth 2010 - 2018 Owner Occupied Renter Occupied 2018 Avg Household Income (National Avg - $75,558) 2018 Med Household Income (National Avg - $53,889)

2018 Households by Household Inc: <$25,000 $25,000 - $50,000 $50,000 - $75,000 $75,000 - $100,000 $100,000 - $125,000 $125,000 - $150,000 $150,000 - $200,000 $200,000+ Demographic data © CoStar 2017

PROPERTY DESCRIPTION

16

CONFIDENTIALITY AGREEMENT The information contained in the following offering memorandum is proprietary and strictly confidential.

It is intended to be reviewed only by the party receiving it from STRIVE and it should not be made available to any other person or entity without the written consent of STRIVE. By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such information in the strictest confidence. The recipient further agrees that recipient will not photocopy or duplicate any part of the offering memorandum. If you have no interest in the subject property at this time, please return this offering memorandum to STRIVE. This offering memorandum has been prepared to provide summary, unverified financial and physical information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. STRIVE has not made any investigation, and makes no warranty or representation with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCBs or asbestos, the compliance with local, state and federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenantâ&#x20AC;&#x2122;s plans or intentions to continue its occupancy of the subject property. The information contained in this offering memorandum has been obtained from sources we believe to be reliable; however, STRIVE has not verified, and will not verify, any of the information contained herein, nor has STRIVE conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Prospective buyers shall be responsible for their costs and expenses of investigating the subject property.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONTACT STRIVE AGENT FOR MORE DETAILS.

Commercial Disclaimer STRIVE hereby advises all prospective purchasers of commercial property as follows: The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, STRIVE has not and will not verify any of this information, nor has STRIVE conducted any investigation regarding these matters. STRIVE makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided.

As the Buyer of a commercial property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. STRIVE expressly denies any obligation to conduct a due diligence examination of this Property for Buyer.

Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a commercial property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors. Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any commercial property to determine to your satisfaction with the suitability of the property for your needs.

Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenants and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenants history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term leases, including the likelihood of locating replacement tenants if any of the current tenants should default or abandon the property, and the lease terms that Buyer may be able to negotiate with any potential replacement tenants considering the location of the property, and Buyer’s legal ability to make alternate use of the property.

By accepting this Marketing Brochure you agree to release STRIVE and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this commercial property.

Information About Brokerage Services

Texas law requires all real estate license holders to give the following information about brokerage services to prospective buyers, tenants, sellers and landlords.

TYPES OF REAL ESTATE LICENSE HOLDERS: • A BROKER is responsible for all brokerage activities, including acts performed by sales agents sponsored by the broker.

• A SALES AGENT must be sponsored by a broker and works with clients on behalf of the broker.

A BROKER’S MINIMUM DUTIES REQUIRED BY LAW (A client is the person or party that the broker represents): • Put the interests of the client above all others, including the broker’s own interests; • Inform the client of any material information about the property or transaction received by the broker; • Answer the client’s questions and present any offer to or counter-offer from the client; and • Treat all parties to a real estate transaction honestly and fairly.

A LICENSE HOLDER CAN REPRESENT A PARTY IN A REAL ESTATE TRANSACTION: AS AGENT FOR OWNER (SELLER/LANDLORD): The broker becomes the property owner’s agent through an agreement with the owner, usually in a written listing to sell or property management agreement. An owner’s agent must perform the broker’s minimum duties above and must inform the owner of any material information about the property or transaction known by the agent, including information disclosed to the agent or subagent by the buyer or buyer’s agent.

AS AGENT FOR BUYER/TENANT: The broker becomes the buyer/tenant’s agent by agreeing to represent the buyer, usually through a written representation agreement. A buyer’s agent must perform the broker’s minimum duties above and must inform the buyer of any material information about the property or transaction known by the agent, including information disclosed to the agent by th e seller or seller’s agent.

AS AGENT FOR BOTH - INTERMEDIARY: To act as an intermediary between the parties the broker must first obtain the written agreement of each party to the transaction. The written agreement must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker’s obligations as an intermediary. A broker who acts as an intermediary: • Must treat all parties to the transaction impartially and fairly; • May, with the parties’ written consent, appoint a different license holder associated with the broker to each party (owner and • buyer) to communicate with, provide opinions and advice to, and carry out the instructions of each party to the transaction.

• Must not, unless specifically authorized in writing to do so by the party, disclose: ӽӽ that the owner will accept a price less than the written asking price; ӽӽ that the buyer/tenant will pay a price greater than the price submitted in a written offer; and ӽӽ any confidential information or any other information that a party specifically instructs the broker in writing not to disclose, unless required to do so by law.

AS SUBAGENT: A license holder acts as a subagent when aiding a buyer in a transaction without an agreement to represent the buyer. A subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first.

TO AVOID DISPUTES, ALL AGREEMENTS BETWEEN YOU AND A BROKER SHOULD BE IN WRITING AND CLEARLY ESTABLISH: • The broker’s duties and responsibilities to you, and your obligations under the representation agreement.

• Who will pay the broker for services provided to you, when payment will be made and how the payment will be calculated.

LICENSE HOLDER CONTACT INFORMATION: This notice is being provided for information purposes. It does not create an obligation for you to use the broker’s services. Please acknowledge receipt of this notice below and retain a copy for your records.

Regulated by the Texas Real Estate Commission

Information available at www.trec.texas.gov IABS 1-0

exclusively listed 469.844.8880 | STRIVERE.COM