AIRTEX DISTRIBUTION CENTER H O U S T O N, T E X A S EXECUTIVE SUMMARY 225,360 SQUARE FOOT BEST-IN-CLASS INDUSTRIAL WAREHOUSE BUILDING
INVESTMENT SUMMARY BEST-IN-CLASS INDUSTRIAL WAREHOUSE HFF is please to offer for sale Airtex Distribution Center (the Propert ), a best-in-class cross-ock inustrial warehouse builing totaling 225,360 square feet. The Propert is locate on Airtex Blv near Interstate 45 in the North Houston Inustrial submarket an in close proximit to George Bush Intercontinental Airport. Airtex Distribution Center is 100% lease to Source Logistics an Fortune Seasons with 4.2 ears weighte average lease term remaining. Airtex Distribution Center allows qualifie investors the opportunit to acquire a new, class-a inustrial asset an participate in the strengthening funamentals of the North Houston Inustrial submarket. INVESTMENT SUMMARY LOCATED WITHIN MAJOR HOUSTON DISTRIBUTION CORRIDOR OPPORTUNITY TO PARTICIPATE IN IMPROVING SUBMARKET FUNDAMENTALS UPON ROLLOVER STRONG TENANCY INCLUDING RECENT TENANT EXPANSION MODERN BUILDING WITH LOW OFFICE FINISH SURROUNDED BY INSTITUTIONAL OWNERS CLOSE PROXIMITY TO GEORGE BUSH INTERCONTINENTAL AIRPORT HOUSTON ECONOMIC FUNDAMENTALS CONTINUING TO STRENGTHEN INVESTMENT OVERVIEW ADDRESS 300 W. Airtex Blv Houston, Texas 77090 NET RENTABLE AREA 225,360 SF LAND SIZE 13.8 acres YEAR BUILT 2014 CLEAR HEIGHT 32 feet OFFICE FINISH 3.9% 2
LOCATED WITHIN MAJOR HOUSTON DISTRIBUTION CORRIDOR Airtex Distribution Center is locate along Houston s major north/south thoroughfare connecting to Dallas, Interstate 45. This location allows for tenants to easil access trae routes an major Houston population centers incluing The Woolans to the north an owntown an surrouning areas to the south. Aitionall, Interstate 45 connects Airtex Distribution Center to the Gran Parkwa (Highwa 99), Houston s outer loop, as well the Sam Houston Tollwa (Beltwa 8) just to the south. Tenants in the north submarket, particularl near Airtex Distribution Center, benefit from its close proximit to the George Bush Intercontinental Airport. OPPORTUNITY TO PARTICIPATE IN IMPROVING SUBMARKET FUNDAMENTALS UPON ROLLOVER North submarket rental rates are currentl below historic highs after a wave of suppl elivere into the earl stages of the oil price collapse in late 2014/ earl 2015. INVESTMENT HIGHLIGHTS Since the latest ccle of evelopment in the submarket, there has been ver limite amount of prouct to hit the market, allowing eman to catch up an man of the existing vacancies have now been fille. Airtex Distribution Center offers the opportunit to acquire an asset an attractive basis for class A prouct an participate in the improving submarket funamentals upon rollover in five ears. 3
STRONG TENANCY The Propert is 100% lease to Source Logistics an Fortune Seasons. Fortune Seasons recentl expane b an aitional 59,854 square feet an extene the term on its existing space, which is its secon expansion at the Propert. Source Logistics is operating a foo grae warehouse within their space an customers inclue 20+ househol brans within a multi-state istribution network. INSTITUTIONAL QUALITY BUILDING WITH LOW OFFICE FINISH Airtex Commerce Center was constructe to the highest stanars of toa s inustrial real estate. The builing features a 32-foot clear height, ESFR sprinkler sstem, 130-foot truck court, 52 ock-high oors an 4 rive-in ramps along with 18 trailer parking stalls. INVESTMENT HIGHLIGHTS 4
GEORGE BUSH INTERCONTINENTAL AIRPORT SURROUNDED BY INSTITUTIONAL OWNERS The North Inustrial submarket is home to man of the largest institutional inustrial owners incluing Prologis, EastGroup, Duke Realt, Libert Propert Trust, CalSTRS, Clarion Partners, IPT an TH Real Estate, to name a few. IPT EXETER IMPERIAL VALLEY DRIVE MOLTO GLP CALSTRS PROLOGIS CLOSE PROXIMITY TO GEORGE BUSH INTERCONTINENTAL AIRPORT Locate a few miles east of Airtex Commerce Center, George Bush Intercontinental Airport serves as Houston s main airport an air cargo estination. The airport serves 27 passenger airlines, 186 non-stop estinations an in 2017 saw nearl 41 million travelers. In Januar 2019, Unite Airlines will a its latest non-stop international estination with Sne, Australia. INVESTMENT HIGHLIGHTS IPT I-45 NORTH FREEWAY George Bush Intercontinental Airport is a ke part of Texas airport network, which accounte for $71.1 billion in international trae in 2015. In that ear, IAH accounte for about $15 billion in trae, supporting 38,000 Texas jobs an generating $5.4 billion in gross state prouct. PROLOGIS LAND W AIRTEX BOULEVARD 5
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SITE PLAN 360 130 SOURCE LOGISTICS 88,551 SF 130 G R A N D P O I N T R O A D 18 TRAILER SPACES DOCK DOORS 596 FORTUNE SEASONS DOCK DOORS PROPERTY OVERVIEW 136,809 SF W E S T A I R T E X B O U L E V A R D OFFICE WAREHOUSE 7
INVESTMENT HIGHLIGHTS 8
HOUSTON ECONOMIC FUNDAMENTALS CONTINUING TO STRENGTHEN The Houston econom is continuing to strengthen. Recentl, Houston has experience robust population, emploment, an overall economic growth. As the nation s fourth-largest metropolitan area is back on the rise, institutional an private groups have mae significant investments in both owntown an the surrouning area. The economic recover can be seen in the metrics nearl 54,200 jobs have been ae in the 12 months trailing Jul 2017 an 125,000 new resients came to Houston from Jul 2015 to Jul 2016 (2n in the Nation). Aitionall, since December 2016, the Houston Business Ccle Inex has grown an annualize 3.3%, suggesting an exit from the oil bust an growth in the future. INVESTMENT HIGHLIGHTS DIVERSIFIED HOUSTON ECONOMY #1 #1 #1 POPULATION GROWTH AMONG U.S. METROS SINCE 2010 (#2 in forecaste population growth through 2030*) GDP PER CAPITA IN THE WORLD (#3 GDP growth since 2000 among U.S. metros) JOB GROWTH AMONG U.S. METROS SINCE 2006 (#3 in forecaste job growth for the next 10 ears*) #3 AMONG U.S. CITIES WITH 46 FORTUNE 1000 COMPANIES HEADQUARTERED IN THE CITY 101,800 JOBS ADDED IN THE TRAILING 12 MONTHS 125,005 $232,000 NEW RESIDENTS FROM JULY 2015 THRU JULY 2016 (#2 in the U.S.) MEDIAN HOME VALUE AS OF DECEMBER 2017 9
CONTACT INFORMATION INVESTMENT SALES TRENT AGNEW Managing Director T. (713) 852-3431 tagnew@hfflp.com FINANCING INQUIRIES MICHAEL JOHNSON Director T. (713) 852-3474 mjohnson@hfflp.com RUSTY TAMLYN, CCIM, SIOR Senior Managing Director T. (713) 852-3561 rtamln@hfflp.com DANE PETERSEN Analst T. (713) 852-3436 petersen@hfflp.com ETHAN GOLDBERG Analst T. (713) 212-6549 egolberg@hfflp.com HFF HOUSTON 9 Greenwa Plaza, Suite 700 Houston, Texas 77046 T. (713) 852-3500 F. (713) 527-8725 hfflp.com