8101 Cameron Road, Austin, TX 78754 WWW.TARANTINO.COM OFFERING MEMORANDUM
Walnut Creek Office Park EXECUTIVE SUMMARY Offering Summary As an exclusive agent for the Owner, Tarantino Properties, Inc is pleased to offer the opportunity to purchase the Walnut Creek Office Park located at 8101 Cameron Road in Austin, Texas. The Offering includes Fee Simple Ownerships of a 34,088 square-foot flex office project that is 91% Leased. The property was built in 1984 and is offered at a price well below replacement value. EXISTING CASH FLOW: The Property is currently 91% Leased with NNN Lease structures. With lease rates averaging under $11 per square-foot per year plus NNNs, Walnut Creek Office Park offers value lease space. The building type, if built brand new, would require rents in the mid-teens plus NNN, making the asset difficult to replace. With with typical units of 1,000 square-feet, the tenancy of the property is generally stable and easily re-leased with limited finish out costs. EXCELLENT POSITION WITHIN THE MARKET: Located at the hard corner of Cameron Road and Rutherford Drive, the property is highly visible at the lighted intersection. Easily accessible from the west and north sides of the property, the location is minutes away from major highways, Interstate 35, Hwy 183, Hwy and the 130 Tollway and just 10 minutes from Downtown Austin. For users requiring a central Austin location and needing to access a large area across the region, this location is excellent. FLEXIBLE SPACES: One hundred percent of the property spaces are built out and conditioned. Each space in building 3 offers grade level doors for users. The spaces in buildings 1 and 2 are easily adjoined as tenant require spaces larger than 1,000 square-feet, with building 1 having significant retail visibility to Cameron Road. 2 Walnut Creek Office Park Tarantino Properties, Inc.
EXECUTIVE SUMMARY Property Overview Address Walnut Creek Office Park 8101 Cameron Road Austin, TX 78754 Price $4,750,000 Price/SF $139 CAP Rate (In Place) 6.75% CAP Rate Proforma 7.30% Description Office/ Flex Space for Lease Building Size/SF 34,000 Acres Approximately 2.91 Occupancy 91% Avg. Rent In-Place / Per SF 24-Hour Traffic Counts (Cameron and Rutherford) $10.88 PSF +/- 40,870 vehicles per day along Cameron Road and Rutherford Lane Nearby 5 Mile Demographics 2016 EST. Population 317,136 No. of Households 125,388 Avg. Household Income $44,905 3 Walnut Creek Office Park Tarantino Properties, Inc.
LOCATION Aerial 4 Walnut Creek Office Park Tarantino Properties, Inc.
Walnut Creek Office Park LOCATION Aerial Au sti n C D B 35 I 3 5 F ro n t a g e Rd 35 ont 0 Fr 9 2. U. S d age R ro n 90 F U. S. 2 tage Rd 35 I 3 5 F ro n t a ge R d 35 183 A son nder Ln E Ln ford r e h Rut 183 183 rso Ande n Ln E WALNUT CREEK OFFICE PARK Ln rford e h t Ru Ca me ron Rd Cr ee kd r Rutherf ord Ln Dr nter e C k Par Ce nt re Ca me ron Cross P ark Dr ark ss P o r C 5 Dr Walnut Creek Office Park Tarantino Properties, Inc. Co nno r Cross P ark Dr Rd Dr
LOCATION Area Map 275 183 Anderson Ln E 183 35 I35 Frontage Rd Anderson Ln E Rutherford Rd Walmart Supercenter WALNUT CREEK OFFICE PARK Cameron Rd CLEAR CREEK ESTATES PARKER ACRES ADESA Austin 35 183 Webb Middle School Anderson Ln E TU BUSI nd 69 I35 Frontage Rd 35 US Social Security Administration 69 Cameron Rd Reagan High School Nelson Field CORONADO HILLS 183 Anderson Ln E 6 Walnut Creek Office Park Tarantino Properties, Inc.
Walnut Creek Office Park LOCATION Site Plan 7 Walnut Creek Office Park Tarantino Properties, Inc.
LOCATION Site Plan 8 Walnut Creek Office Park Tarantino Properties, Inc.
AUSTIN SUBMARKET OVERVIEW AUSTIN OFFICE MARKET OVERVIEW The Austin office market is comprised of 96,904,284 square feet of space found in 4,650 buildings. With a total of 3,391,649 square feet available for lease, the Austin office area is 96.5% occupied. A total 225,553 square feet of absorption has been recorded for 2017 and the average rental rate remains steady at $32.47 NNN. Approximately 3,842,183 square feet of space is under construction and 297,684 square feet of space is expected to be delivered by the end of the second quarter in 2017. AUSTIN FLEX MARKET OVERVIEW The Austin flex market is comprised of 99,481,394 square feet of space found in 4,061 buildings. With a total 5,968,883 SF of square feet available for lease, the Austin flex area is 94% occupied. A total of negative 198,652 square feet of absorption has been recorded for 2017 and the average rental rate remains steady at $9.51 NNN. A total of 22 buildings were delivered to the market in the first quarter totaling 1,132,037 square feet, with 1,518,183 square feet still under construction at the end of the quarter in 2017. AUSTIN OFFICE MARKET OVERVIEW AUSTIN FLEX MARKET OVERVIEW 9 Walnut Creek Office Park Tarantino Properties, Inc.
FINANCIALS Rent Roll SUITE TENANT LEASE FROM LEASE TO SF MONTHLY BASE RENT ANNUAL RENT PER SF EXPENSE RECOVERY DEPOSIT 101 Get Up Project 10/20/2016 10/31/2018 1,000 $970.00 $11.64 NNN $1,350.00 102 State Farm 10/1/2012 9/30/2018 700 $568.75 $9.75 NNN $1,210.00 103 Homeland Staffing, Inc 8/15/2014 8/31/2017 1,000 $920.00 $11.04 NNN $1,500.00 104 The Wright House 5/1/2012 9/30/2020 3,000 $2,500.00 $10.00 NNN $3,125.00 106 Dr. Patsy Jones 3/1/2017 2/28/2019 1,000 $833.33 $10.00 NNN $1,700.00 108 VACANT - - 1,000 $ - $ - - $ - 109 BBM Online - Staffing - 4/30/2018 1,300 $1,083.33 $10.00 NNN $ - 110 Estafeta 3/1/2017 2/29/2020 1,000 $833.33 $10.00 NNN $1,400.00 201 National Elevator Industry 5/27/2015 7/31/2020 2,600 $3,308.50 $15.27 NNN $1,700.00 203 River Blue International, LLC - 2/29/2020 1,000 $1,000.00 $12.00 NNN $ - 204 Star Delivery - 3/31/2020 700 $608.42 $10.43 NNN $749.00 205 New Birth By Faith 6/1/2015 6/30/2017 1,388 $1,226.12 $10.60 NNN $350.00 206 Makeup Squared 6/1/2015 5/31/2017 700 $539.58 $9.25 NNN $772.91 207 Signed LOI - 5 Year 1,300 $ - $ - NNN $ - 208 Oleta Miller - 2/28/2019 1,000 $833.33 $10.00 NNN $ - 209 VACANT - - 700 $ - $ - $ - CONTINUE ON PAGE 11 10 Walnut Creek Office Park Tarantino Properties, Inc.
FINANCIALS Rent Roll (Continue) SUITE TENANT LEASE FROM LEASE TO SF MONTHLY BASE RENT ANNUAL RENT PER SF EXPENSE RECOVERY DEPOSIT 210 Jese Webb 8/1/2016 7/31/2017 700 $641.67 $11.00 NNN $910.00 301 Floorplan Xpress 9/1/2012 8/30/2018 1,000 $1,000.00 $12.00 NNN $1,200.00 302 Truly Nolan of America 2/8/2016 2/28/2018 1,000 $958.33 $11.50 NNN $ - 303 Raul Machado 9/13/2011 12/31/2017 1,000 $1,166.67 $14.00 NNN $1,042.00 304, 305 A Family of New Beginnings 3/1/2015 3/31/2018 2,000 $1,500.00 $9.00 NNN $2,140.00 306 Nippon Express 9/1/2012 8/31/2018 1,000 $937.50 $11.25 NNN $940.00 307, 308 Best Choice Roofing 6/1/2014 5/31/2019 2,000 $1,666.66 $10.00 NNN $1,070.00 309 WellsTorrones, LLC 10/15/2016 11/14/2018 1,000 $916.67 $11.00 NNN $1,400.00 310 Lifesource Water Systems 4/1/2015 4/30/2018 1,000 $916.67 $11.00 NNN $1,250.00 311 Terra Imports, LLC 7/1/2014 6/30/2017 1,000 $880.00 $10.56 NNN $1,070.83 312 MCH Painting, Inc. 4/1/2013 3/31/2018 2,000 $1,458.33 $8.75 NNN $850.00 314 Applied Technology 6/1/2015 5/31/2017 1,000 $916.67 $11.00 NNN $1,250.00 TOTAL 34,088 $28,183.87 11 Walnut Creek Office Park Tarantino Properties, Inc.
FINANCIALS Operating Expenses ACTUALS (YE 2016) PROFORMA CATEGORY ANNUAL PER SF ANNUAL PER SF Administrative $971.00 $0.03 $971.00 $0.03 Management Fee $19,309.00 $0.57 $21,633.37 $0.64 Contract Services $19,682.00 $0.58 $19,682.00 $0.58 Payroll $8,472.00 $0.25 $8,472.00 $0.25 Repairs and Maintenance $10,015.00 $0.29 $10,015.00 $0.29 Utilities $31,547.00 $0.93 $31,547.00 $0.93 Taxes $94,084.00 $2.77 $94,084.00 $2.77 Insurance $7,789.00 $0.23 $7,789.00 $0.23 TOTAL EXPENSES $191,869.00 $5.65 $194,193.37 $5.72 12 Walnut Creek Office Park Tarantino Properties, Inc.
FINANCIALS Cash Flow Analysis YEAR ENDED YEAR 1 AUG-18 YEAR 2 AUG-19 YEAR 3 AUG-20 YEAR 4 AUG-21 YEAR 5 AUG-22 YEAR 6 AUG-23 YEAR 7 AUG-24 YEAR 8 AUG-25 YEAR 9 AUG-26 YEAR 10 AUG-27 YEAR 11 AUG-28 Potential Gross Revenue Scheduled Base Rent 364,003 362,581 370,868 401,790 404,601 406,257 401,107 406,833 403,284 403,283 407,331 Cam Collections 189,506 188,234 191,364 191,072 202,270 198,735 209,545 212,483 215,050 225,181 226,208 Other Income 5,271 5,429 5,592 5,760 5,933 6,111 6,294 6,483 6,677 6,877 7,084 Total Potential Gross Income $ 558,780 $ 556,245 $ 567,824 $ 598,622 $ 612,804 $ 611,102 $ 616,946 $ 625,798 $ 625,011 $ 635,342 $ 640,623 General Vacancy (27,939) (27,812) (28,391) (29,931) (30,640) (30,555) (30,847) (31,) (31,251) (31,767) (32,031) Effective Gross Income 530,841 528,433 539,433 568,691 582,164 580,547 586,099 594,508 593,760 603,575 608,592 Operating Expenses Admin (990) (1,010) (1,030) (1,051) (1,072) (1,093) (1,115) (1,137) (1,160) (1,183) (1,207) Contract (20,076) (20,478) (20,887) (21,305) (21,731) (22,166) (22,609) (23,061) (23,522) (23,993) (24,473) Personnel (8,641) (8,814) (8,990) (9,170) (9,353) (9,540) (9,731) (9,926) (10,124) (10,327) (10,533) Repairs & Maintenance (10,215) (10,419) (10,628) (10,840) (11,057) (11,278) (11,504) (11,734) (11,969) (12,208) (12,452) Utilities (32,178) (32,822) (33,478) (34,148) (34,831) (35,527) (36,238) (36,962) (37,702) (38,456) (39,225) Management Fee (23,469) (24,384) (25,335) (26,323) (27,350) (28,417) (29,525) (30,676) (31,873) (33,116) (34,407) Property Taxes (95,966) (97,885) (99,843) (101,840) (103,877) (105,954) (108,073) (110,235) (112,439) (114,688) (116,982) Insurance (7,945) (8,104) (8,266) (8,431) (8,600) (8,772) (8,947) (9,126) (9,309) (9,495) (9,685) Total Operating Expenses (199,480) (203,916) (208,457) (213,108) (217,870) (222,747) (227,742) (232,858) (238,098) (243,465) (248,964) Net Operating Income 331,361 324,517 330,975 355,583 364,294 357,800 358,357 361,651 355,663 360,109 359,628 TI/LC Projected TI (19,182) (11,550) (17,682) (30,900) (9,450) (29,082) (19,050) (15,132) (27,900) (13,050) (25,032) Projected Leasing Commissions (8,934) (6,052) (9,130) (16,255) (4,880) (15,228) (9,925) (7,814) (14,618) (6,826) (13,137) Projected TI and LC ($28,116) ($17,602) ($26,812) ($47,155) ($14,330) ($44,310) ($28,975) ($22,946) ($42,518) ($19,876) ($38,169) Cash Flow For Debt Service $ 303,245 $ 306,915 $ 304,163 $ 308,428 $ 349,964 $ 313,490 $ 329,383 $ 338,705 $ 313,145 $ 340,233 $ 321,459 13 Walnut Creek Office Park Tarantino Properties, Inc.
FINANCIALS Assumptions ANALYSIS BEGINS SEPTEMBER 1,2017 Annual Rent Inflation 3.50% Annual Expense Inflation 2% Management Fee 4% Tenant Improvements: New Renew All Space $3.00 $1.00 Leasing Commissions: New Renew All Space 5% 2% General Vacancy: 5% Turn Over Months Vacant Percent Renew Terms in Years Flex Office 4 75% 2.5 14 Walnut Creek Office Park Tarantino Properties, Inc.
502 E 11th Suite 400 Austin, Texas 78701 512.302.4500 512.302.4109 Nick Tarantino, CCIM Vice President nick@tarantino.com 512-302-4500 Devony Wilmot New Business devony@tarantino.com 512-302-4500 Austin Houston - Corporate Office 7887 San Felipe Suite 237 Houston, Texas 77063 713.974.4292 713.974.5846 Dallas 606 N. Central Expy Suite 560 Dallas, Texas 76206 972.234.9901 San Antonio 12770 Cimarron Path Suite 122 San Antonio, Texas 78249 210.212.6222 210.212.7111 www.tarantino.com