Howard Lane

Status	Active
Address	2306 Howard Lane / Austin, Texas 78728
County	Travis
Type	Warehouse

PROPERTY PROFILE

Parcel Number	Lot 5, Block A, Well Branch Phase O, Section Two
Acreage	79,750 total square feet
Zoning	Commericial
Unit Mix	3 Office/Warehouse Suites
Number of units	3
Currently Leased	yes

FINANCIAL INFORMATION

Purchase Date	06/05/2007
Purchase Price	$4,100,000
Total Cost	$4,300,000
Estimated Site Rehab Cost	$200,000
IRR	testing

Current Occupancy	65
Lease Type	2 years
Sales Date	Not Sold
Market Value	$5,435,262
Property Status	Completing renovations and continue leasing space. Will be listing soon. New property photos should be posted by end of December.

The Howard Lane property consists of 3 warehouse/office units totaling 79,750 total sf. The property is located between Mopac expressway and I-35 freeway and close proximity to the new I-45 toll road. Unit A is 25,750 sf and is currently occupied by ARS. The current leasee will lease the property for a period of 24 months with a 2-year renewal period at a monthly triple net lease amount of $11,587.50 with annual increases. Unit B is 27,000 sf. and is currently unoccupied but there is a potential tenant that is looking at that space once rehab has been completed. Unit C is 27,000 sf and is currently occupied by Multimedia Games, Inc. The current leasee has 6 months remaining on their lease with no option to renew. The monthly rental payment is $9,720, triple net. The leasee is looking at signing a new lease once rehab has been completed.

Each unit consists of 26’ clear height bulk warehouse storage, tilt wall building, sprinklered, 180 deep bay, column spacing 31’x36’, high bay lighting and 1/1000 sf parking lot consisting of 80 spaces. Unit A is 21,330 sf warehouse (2 10’ x 10’ dock high door; 2 10’ x 10’ grade level door) and 4,420 sf office space (8 offices, conference room, break room, 3 bathrooms). Unit B is 26,340 sf warehouse (2 10’x10’ dock high doors with electric dock levelers; 2 10’x14’ electric grade level doors) and 660 sf office space (2 offices, large reception, 2 bathrooms). Unit C is 26,340 sf warehouse (4 10’x10’ dock high doors; 1 10’x10’ grade level door; 600 sf fenced and covered outdoor storage) and 680 sf office space (2 offices, counter sales area, 2 bathrooms).

Our rehab costs will be used to increase Unit B and C office space to approximately 2,700 sf. This will increase the office space to 10% of gross sf. Once rehab has been completed we believe that we will be able to increase lease value to market rates which is $0.45 – $0.50 sf. Based on projected return @ $0.45 sf the net annual return will increase to 9.89%.

All inspections of this property have been completed and are in good order.

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Map

Returns

Net Annualized returns from sale	N/A
Total Net Annualized Return
IRR	testing
Average Annual Return

Images