PORTFOLIO OVERVIEW Fort Worth Alliance HASLET WATAUGA 820 Fort Worth NORTH RICHLAND HILLS CITY LandmarkHALTOM at Heritage PK CHI SHOLM T BEDFORD FORT WORTH CBD BELT JUNCTION FOREST HILL PR E DALLAS ARLINGTON University White Rock wood Uptown CBD OAK CLIFF GRAND PRAIRIE Pointe Monterra Mountain Creek DALWORTHINGTON GARDENS GARL Highlands Arlington IL RA Preston Hollow Highland 820 RICHARDSON Landmark at Ridgewood Preserve Fields. WY ADDISON DALLAS LOVE FIELD AIRPORT IRVING KE Addison EULESS HURST Meacham WESTOVER HILLS Dallas/Fort Worth International COLLEYVILLE ENT GEORGE BUSH T SID UR NP I TOLLWAY OOK FLOWER MOUND TROPHY ROANOKE CLUB Grapevine Three-Property Value-Add Portfolio Totaling 624 Units In Arlington, Texas CARROLLTON GRAPEVINE COPPELL North OFFEREDSOUTHLAKE AS A PORTFOLIO OR ON AN INDIVIDUAL BASIS KELLER FARMERS BRANCH LAS COLINAS 820 LAKE WORTH PLANO LEWISVILLE DALLAS NORTH SAGINAW NAS Joint Reserve Base Fort Worth NT ALL RA SAM THE COLONY JUSTIN OME rth HIGHLAND VILLAGE 45 B S 20 DUNCANVILLE EDGECLIFF VILLAGE HUTCHINS 20 Joe Pool ook e DE SOTO LANCASTER 45 CEDAR HILL CROWLEY BURLESON MANSFIELD FERR MIDLOTHIAN MONTERRA POINTE LANDMARK AT RIDGEWOOD PRESERVE OFFERING SUMMARY LANDMARK AT HERITAGE FIELDS 1
HFF has been exclusively retained to offer qualified investors the opportunity to purchase the fee simple interest in the 624- unit Arlington Class B Value-Add Portfolio (the Portfolio or the Properties ), consisting of three value-add, Class B assets in the desired Arlington submarket. All Properties offer significant upside through a value-add program, while benefitting from a central location equidistant from both the Dallas CBD and Fort Worth CBD. The Portfolio boasts a proximate location to some of the region s largest entertainment options and economic drivers including the General Motors Assembly Plant, the Great Southwest Industrial, AT&T Stadium, Globe Life, and the University of Texas at Arlington. New ownership has the ability to capitalize on the value-add nature of the Portfolio by implementing unit interior upgrades and renovating community features to drive rental rate income at the Properties. SIGNIFICANT VALUE-ADD GROWTH POTENTIAL Continuing to expand on the current renovations will offer the opportunity to bridge the 16.4% gap in effective rents between the Portfolio and its competitive set. Furthermore, Green Financing can be secured by implementing renovations leading to a 15% reduction in energy and/or water costs resulting in better loan pricing and increased proceeds. Potential unit upgrades include black/stainless steel appliances, faux-wood flooring, tile backsplashes, and two inch blinds, as well as community features ranging from the addition of outdoor grills and new pool furniture to renovated fitness centers and dog parks. Landmark at Heritage Fields 60% of units w/black appliances Landmark at Ridgewood Preserve 25% of units w/black appliances Monterra Pointe 31% of units w/black appliances IMPRESSIVE INCOME TRENDS Over the twelve months ending March 2017, the Portfolio has experienced 6.8% effective rent growth with an explosive 9.1% increase seen in the latest 20 signed leases in each Asset. Over the same period, the Portfolio averaged a stable 95.6% occupancy. According to MPF, the Properties are situated within the highly desired North Arlington submarket, which boasted an occupancy of 96.2%. As of Q1 2017, the 34,014-unit North Arlington submarket had experienced significant rent growth of 9.2%, tied for the strongest growth of all DFW submarkets. Effective Rent Occupancy Effective Rent $810 $790 $770 $750 $7 $710 $690 $819 $756 $740 $744 $747 $751 $735 $727 $7 $723 $711 $714 $717 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 RR L20 100% 98% 96% 94% 92% 90% 88% 86% 84% 82% 80% Occupancy ABUNDANT NEARBY ECONOMIC DRIVERS Great Southwest Industrial At 88-million square feet, it is one of the largest industrial parks in Texas General Motors Assembly Plant Employs more than 4,100 employees, encompassing 4.1 million square feet The University of Texas at Arlington Has an annual enrollment of 34,000 students with more than 1,0 full-time faculty members and over 5,0 general employees DFW International The fourth busiest airport in the world in terms of take-offs and landings, handling over 1,850 flights per day and 66 million total passengers in 2016 USMD Hospital at Arlington / Medical Center of Arlington Two award-winning institutions that combined employ more than 1,600 people Lockheed Martin s Missiles and Fire Control Of the 13,700 Lockheed Martin employees in DFW, 2,700 work at the MFC site in Arlington 2
DIVERSE SHOPPING & ENTERTAINMENT DESTINATIONS AT&T Stadium The $1.5 billion stadium is home to Texas own Dallas Cowboys. With a maximum capacity of 100,000, the stadium is considered to be one of the most stateof-the-art facilities in all professional sports Globe Life Home to the American League s Texas Rangers, the park can host a maximum capacity of 49,100 fans and attracts more than 3 million visitors annually Texas Live! Expected in early 2018, the first additions of the $1.25 billion stadium and mixed-use district Texas Live! will be delivered adjacent to Globe Life. Featuring dining, entertainment, hotels, and a convention facility, the development is estimated to create over 3,025 jobs and have a $100 million yearly economic impact. Texas Live! will also be adding a new ballpark for the Texas Rangers, expected to be completed before the start of the 2020 season Six Flags Over Texas and Hurricane Harbor The first Six Flags theme park built in the Six Flags chain, sprawled over a massive 212 acres; also containing Hurricane Harbor, North Texas largest water park featuring 50 acres of rides and slides Arlington Convention Center Adjacent to Globe Life is the Arlington Convention Center which offers 48,600 SF of column-free exhibit space and a,000 SF Grand Hall complete with foot ceilings Arlington Highlands Shopping Center 800,000 square feet of open-air retail featuring restaurants, shops, entertainment options, and Class A office space The s at Arlington Mall Anchored by Dillard s, Macy s and JCPenney, the mall consists of over 180 specialty stores and an AMC Theatre EXCEPTIONAL CONNECTIVITY All three properties are well located, averaging less than a mile from either Interstate (I-) or SH-360 while remaining proximate to some of the most traveled highways in the region including Interstate-20, SH-161, President George Bush Turnpike, and SH-287. The central location of the Properties provides tenants with an equidistant drive to both the Dallas CDB and Fort Worth CBD, allowing dual-working households to seek employment in either major city. This diverse selection of transportation arteries connect the Property to virtually every significant employment area, residential area, and amenity base in the DFW Metroplex. DALLAS/FORT WORTH ECONOMIC OVERVIEW NORTH ARLINGTON APARTMENT MARKET OVERVIEW 119,000 New jobs added during year-ending February 2017 DFW and NYC, the only 2 MSA s to add more than 100,000 jobs YoY Feb 17 580,840 people projected to relocate to DFW from 2017 through 2021 9.2% annual rent growth ending Q12017 96.2% average occupancy consecutive quarters with positive revenue growth averaging 7.2% 3
Landmark at Heritage Fields Unit Mix Market Effective Units % Description Type SF Rent PSF Rent PSF 64 27% 1 BR - 1 BA 5200a1 524 $668 $1.27 $649 $1.24 64 27% 1 BR - 1 BA 5200a2 590 $713 $1.21 $676 $1.15 48 20% 1 BR - 1 BA 5200a3 691 $751 $1.09 $727 $1.05 32 13% 2 BR - 2 BA 5200b1 941 $952 $1.01 $907 $0.96 32 13% 2 BR - 2 BA 5200b2 1,141 $1,006 $0.88 $948 $0.83 240 100% 713 $780 $1.09 $747 $1.05 Landmark at Heritage Fields Landmark at Ridgewood Preserve Unit Mix Market Effective Units % Description Type SF Rent PSF Rent PSF 24 13% Studio 5217stud 452 $627 $1.39 $604 $1.34 48 26% 1 BR - 1 BA 5217a1 553 $706 $1.28 $659 $1.19 48 26% 1 BR - 1 BA 5217a2 652 $727 $1.12 $688 $1.06 48 26% 2 BR - 2 BA 5217b1 860 $913 $1.06 $875 $1.02 16 9% 2 BR - 2 BA 5217b2 1,075 $959 $0.89 $914 $0.85 184 100% 691 $777 $1.12 $736 $1.06 Landmark at Ridgewood Preserve Monterra Pointe Unit Mix Market Effective Units % Description Type SF Rent PSF Rent PSF 100 50% 1 BR - 1 BA 5213a1 628 $724 $1.15 $703 $1.12 24 12% 1 BR - 1 BA 5213a2 868 $804 $0.93 $751 $0.87 36 18% 2 BR - 1 BA 5213b1 868 $862 $0.99 $840 $0.97 40 20% 2 BR - 2 BA 5213b2 883 $926 $1.05 $906 $1.03 200 100% 751 $799 $1.06 $774 $1.03 Monterra Pointe Landmark at Heritage Fields Landmark at Ridgewood Preserve Monterra Pointe Total / Averages Year Built: 1979 1979 1985 Address: 28 Fair Oaks Dr 1000 Mill Crossing Pl 2105 Cottonwood Club Rd Location: Arlington, TX Arlington, TX Arlington, TX Buildings: 19 15 11 Stories: 2 & 3 2 3 Occupancy (4/11): 95.4% 96.7% 95.5% 95.8% Total Units: 240 184 200 624 Avg. Unit Size: 713 SF 691 SF 751 SF 719 SF Rentable Area: 171,088 SF 127,168 SF 150,200 SF 448,456 SF Land Area: 9.8 acres 8.0 acres 7.2 acres 25.0 acres Density: 25 units/acre 23 units/acre 28 units/acre 25 units/acre ing: 438 spaces 384 spaces 421 spaces 1,243 spaces ing Ratio: 1.83 spc/unit 2.09 spc/unit 2.11 spc/unit 1.99 spc/unit 4
MONTERRA POINTE LANDMARK AT RIDGEWOOD PRESERVE LANDMARK AT HERITAGE FIELDS 5
PROPERTY DESCRIPTION Viridian Landmark at Ridgewood Preserve Chester W. Ditto Golf Course Landmark at Heritage Fields Clarence Thompson - 2,000-acre Residential Master Plan expected to total $1.5 B in value - Avg. list price $457,000-500 acres of parks & open spaces plus 600 acres of lakes and water features DFW - Fourth busiest airport in the world - Contributes $37B annually to the North Texas economy - $12.5 billion payroll supporting 228,000 jobs way Rolling Hills Central Country Club (144,900 VPD) Verizon Theatre Arlington Convention Center Globe Life (Home of the Texas Rangers) Texas Live! Future Development General Motors Assembly Plant SH-180 (26,000 VPD) Texas General Hospital SH-360 (188,000 VPD) AT&T Stadium (Home of the Dallas Cowboys) Great Southwest Industrial Lockheed Martin Missiles and Fire Control DFW will outperform every other metro in the country adding 580,840 residents and 226,340 new jobs from 2017 through 2021 according to REIS, Inc. Bob Cooke Monterra Pointe SH-3 (53,000 VPD) Sam Houston High School ADDITIONAL INFORMATION If you have any questions or require additional information, please contact any of the individuals below. ROBERTO CASAS Senior Managing Director rcasas@hfflp.com (469) 232.1939 OFFER DATE: TBD TIMING: All submissions must include specific terms relating to Due Diligence and Closing time periods. TERMS: Free and Clear STRUCTURE: Offered as a Portfolio or on an Individual Basis ROB KEY Managing Director rkey@hfflp.com (469) 232.1926 GREG TORO Director gtoro@hfflp.com (469) 232.1995 DAVID AUSTIN Associate Director daustin@hfflp.com (469) 232.1993 ALEX DE LARREA Analyst adelarrea@hfflp.com (214) 692.4710 JOSEF CTVRTLIK Analyst jctvrtlik@hfflp.com (469) 232.1929 For questions regarding debt structures on this property, please contact: JEREMY SAIN Managing Director jsain@hfflp.com (469) 232.1904 CAMPBELL ROCHE Managing Director croche@hfflp.com (469) 221.7770 2323 Victory Avenue, Suite 1200 Dallas, TX 75219 hfflp.com 214.265.0880 214.265.9564 HFF has been engaged by the owner of the property [properties] to market it [them] for sale. Information concerning the property [properties] described herein has been obtained from sources other than HFF, and neither Owner nor HFF, nor their respective equity holders, officers, employees and agents makes any representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all reference to age, square footage, income, expenses and any other property specific information are approximate. Any opinions, assumptions, or estimates contained herein are projections only and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a purchaser, and HFF, its partners, officers, employees and agents disclaim any liability that may be based upon or related to the information 6 contained herein. Prospective purchasers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change.