Holliday Fenoglio Fowler, L.P. acting by and through Holliday GP Corp a Texas licensed real estate broker ("HFF"). Austin-round rock, texas investment summary
Round Rock has been recognized as one of the fastest-growing suburbs as the population within a five-mile radius of the Property has experienced 26% growth in the last 7 years the population is 178,598 within a five-mile radius of the Property, and expected to increase by nearly 11% to 197,841 within 5 years Executive Summary 2 HFF is pleased to exclusively offer the opportunity to acquire a two tenant NNN leased property located in Round Rock, a suburb of Austin, Texas. The 9,542 square foot property is 100% leased to Austin favorites Hopdoddy Burger Bar and Cover 3 restaurant & sports bar. The asset is located on IH-35 in Round Rock and is surrounded by the city s highest concentration of popular Central Texas restaurants. Excellent visibility and accessibility coupled with outstanding brand recognition attract both Austin area residents and travelers alike. Project Summary * Irreplaceable location in Round Rock with direct frontage on IH-35 the main thoroughfare connecting Dallas to Austin and San Antonio. Traffic counts exceed 197,000 VPD at the intersection of West Old Settler s Boulevard and the major interstate highway * Hopdoddy and Cover 3 are both Austin original concepts with multiple locations, each have received numerous accolades and awards from local, state and national food and bar publications * The Property boasts a population of over 80,000 within a three-mile radius and an average household income of $94,935. The population within a three-mile radius of the Property has increased 21% since 2010 Pricing Please Contact HFF for Guidance Cap Rate 5.9% Address Rentable Area Tenants 2800 S Interstate Hwy 35, Round Rock, TX 78681 2600 Hoppe Trail, Round Rock, TX 78681 9,524 SF Hopdoddy Burger Bar Cover 3 Occupancy 100% Lease Type Site NNN 1.825 Acres Year Built 1997 - Completely Renovated 2016 Parking 134 Spaces - 14:1,000 Roof Type/Year Installed Metal - Installed 2015 HVAC Installed 2015 Traffic Counts 197,000 VPD
investment highlights Stable Cash flow * The Property is 100% leased to Hopdoddy and Cover 3, both of which are operated by successful restaurateurs with proven track records * 15 year leases for each tenant include reimbursement of all NNN expenses, built-in escalations and percentage rent payments based on store sales. Hopdoddy reached percentage rent threshold in its first year of operation * The Property was completely renovated for Hopdoddy and Cover 3 with sizeable tenant improvement contributions from both existing ownership and tenants, ensuring minimal concern for future capital outlay at the property 3 Hopdoddy
investment highlights Irreplaceable Location * Round Rock s most popular restaurants, including Jack Allen s Kitchen, Salt Traders, Rudy s, Cracker Barrel, Chuy s, Saltgrass and Kerbey Lane Café are all located along a 3/4 mile stretch of IH-35 the diner s destination is easily accessed by locals and interstate travelers * There are over 550 hotel rooms within a half-mile radius of the Property, most of which are within walking distance, including Springhill Suites, Courtyard Marriott, Holiday Inn & Holiday Inn Express, Tru by Hilton, as well as La Quinta and Red Roof Inn * Round Rock Sports Center is located within walking distance of the Property. The 82,800 square foot, $15 million state-of-the-art multipurpose venue hosts hundreds of tournaments, concerts and other events throughout the year. The Property s walkability to the sports facility has helped drive sales for both tenants as event attendees look for quality dining options before, during and after events Round Rock Explosive Growth Area * In close proximity to the Property, the recently announced Kalahari Resort, set to open in 2020, will be a $350 million resort, consisting of nearly 1,000 guest rooms, 200,000 square feet of indoor water park, and 150,000 square feet of convention space * The Dell Diamond is home to the Round Rock Express, the minor league affiliate of the Texas Rangers, who consistently sell out all 6,500 seats throughout the spring, summer and fall. Dell Diamond and the adjacent Old Settler s Park draw over 1 million visitors annually * Round Rock is home to 10.5 million square feet of multi-tenant office space and is increasingly becoming the preferred location for large corporate tenants including Dell, Home Depot Technology, GM Innovation, Emerson, and Harcourt Publishing 1-Mile Radius 3-Mile Radius 5-Mile Radius Population (2017) 8,324 80,510 178,598 Population Growth 2017-2022 9.6% 9.9% 10.8% Population Growth 2010-2017 19.6% 21.1% 26.1% Average Household Income $96,202 $94,935 $102,470 Median Housing Value $246,575 $223,182 $234,367 five-mile radius demographics Dell Diamond 4 26.1% $102,470 $234,367 Population Growth 2010-2017 Average Household Income Median Housing Value Cover 3
investment highlights Exceptional Property Fundamentals * With over 200 feet of IH-35 frontage, the Property affords easy access to the 197,000 vehicles per day traveling North and South along the IH-35 corridor * The 1.825 acre tract provides restaurants with a well above-average parking ratio of 14:1,000 * Recent facade and building upgrades offer exceptional curb appeal and differentiate the Property from surrounding competitors WOLLE LANE HOPPE TRAIL I-35 FRONTAGE ROAD 5 197,000 VDP
Recognition 6 Hopdoddy Size: 3,936 SF Lease Expiration: December, 2030 www.hopdoddy.com Since opening its first location on South Congress in 2010, Hopdoddy has experienced explosive growth across the country. Today Hopdoddy has expanded to 18 locations across 4 states with additional locations planned for 2017. A combination of Hop (for beer) and Doddies, the nickname for a Scottish cow, Hopdoddy s award-winning burger and craft beer concept is worth the hype. The restaurant stays true to its good food, good vibes slogan and offers high-quality food, drinks and service in a fun and entertaining environment. Hopdoddy was founded as a joint venture between two of Austin s most successful and well-known restaurant teams, Larry Foles/ Guy Villavaso and Larry Perdido/Chuck Smith. Larry Foles and Guy Villlavaso are the restaurant masters behind Austin staples such as Z Tejas (sold to KarpReilly in 2007), Eddie V s (sold to Darden Restaurants for $59 million in 2011), Chez Fred, and Roaring Fork. The other half of this restaurant power team consists of Larry Perdido and Chuck Smith, who created arguably the most popular sitdown restaurant in Austin, Moonshine Patio & Grill. These teams utilized their deep industry knowledge and creative flare to develop a revolutionary burger chain. Hopdoddy prides itself on serving hormone and antibiotic-free beef, scratch-made buns baked twice daily, hand-cut fries and high-quality ingredients that are sourced locally and organically. Hopdoddy is a gourmet burger bar featuring some of the most unique burgers you will find, a carefully curated list of local beers on tap and inventive mixed drinks made from fresh squeezed juice. Hopdoddy has created an unrivaled customer experience, offering a unique hybrid between counter-service and table-service, where patrons can expect quick, reliable service in an enjoyable and quintessentially Austin dining environment. Opening its doors in January 2016, the Round Rock location was an instant success and has become a favorite among locals and tourists alike. Readers Picks - Best Burgers Food and Wine Best Burgers in America Every Day with Rachel Ray Featured Burger Chain USA Today 50 Greatest Burgers in Texas Texas Monthly 101 Best Hamburgers in the United States #66 The Daily Meal
Recognition 7 Cover 3 Size: 5,588 SF Lease Expiration: March, 2031 www.cover-3.com The founders of Cover 3, Matt Dodson and Doug Young, began their careers in the restaurant industry working at Z Tejas under the leadership of Larry Foles and Guy Villavaso (founders of Z Tejas and later Hopdoddy). Dodson and Young are credited in overseeing the extraordinary success the chain experienced in the early 2000s and eventually became operating partners in the venture. In 2007, as Z Tejas was set to be sold, Dodson and Young decided to take their deep industry knowledge and create their own restaurant concept, Cover 3. With the guidance and support of Foles and Villavaso, they opened a restaurant and sports bar that capitalized on providing an alternative dining experience for the sports fan and sophisticated diner. Cover 3 is truly an Austin original that is dedicated to exceptional service and serving quality dishes in an enjoyable, sports oriented atmosphere. At Cover 3, everything is made from scratch and each menu item is prepared using the finest and freshest ingredients available. Home of Texas Monthly s Best Burger in Texas, Cover 3 offers something for everyone with an abundance of TV s and a vast menu featuring specialty cocktails, draft beer and a wide variety of brunch, lunch and dinner plates. Cover 3 is a lunch and dinner hotspot for all age groups, as well as a weekend go-to for the brunch loving population of Austin. Today, Cover 3 operates four locations, three in Austin and one in San Antonio. The Round Rock location seats approximately 200 people and features an indoor dining area, two private rooms for events and covered outdoor patio. This particular Cover 3 is the only location servicing the Northern suburbs of Austin and has scored exceptionally well on Yelp, averaging 4.5 stars out of 5. 101 Best Sports Bars in #12 Best Burgers in Texas Texas Monthly Best Bar in Central Region Sports Illustrated #1 Favorite Place to Grab a Beer Austin 360 s Readers Pick Reader s Choice Sports Bar My San Antonio Best Brunch and Best Bloody Mary San Antonio Current
site plan Suite Tenant SQ. FT Expiration 1 Hopdoddy Burger Bar 3,936 December 2030 2 Cover 3 5,588 March 2031 8
ATLANTA AUSTIN BOSTON CAROLINAS CHICAGO DALLAS DENVER FLORHAM PARK (NJ) HOUSTON INDIANAPOLIS LOS ANGELES MIAMI NEW YORK ORANGE COUNTY (CA) ORLANDO PHILADELPHIA PHOENIX PITTSBURGH PORTLAND (OR) SAN DIEGO SAN FRANCISCO TAMPA WASHINGTON, D.C. LONDON DEBT PLACEMENT INVESTMENT SALES EQUITY PLACEMENT FUNDS MARKETING M + A & CORPORATE ADVISORY LOAN SALES LOAN SERVICING 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 contained herein. Prospective purchasers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change. Presented By Walter Saad Managing Director 512.532.1961 wsaad@hfflp.com Cathy Nabours Managing Director 512.532.1962 cnabours@hfflp.com Drew Fuller Director 512.532.1931 dfuller@hfflp.com Bentley Smith Analyst 512.532.1971 bsmith@hfflp.com Financing Kyle Spencer Senior Director 512.532.1921 kspencer@hfflp.com