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offe ri ng s um mary
UPITER
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cl ass a value-add investment opp ortunit y
4 Cl ass A Flex Buildings | 3 Fully Leased, 1 Vacant | 126,485 Square Feet | 65.5% Leased
10 09 Jupi t er
210 0 10th Street
2 2 0 0 10th Street
2 2 01 1 0th Stre e t
P ORT FOL IO S UM MARY
INVESTMENT HIGHLIGHTS
•
65.5% portfolio occupancy (All vacancy in one
building) offers ample upside for value-add investors
Stream Realty Partners is pleased to present the opportunity to purchase the
Jupiter Service Center
•
located in Plano, Texas. The investment opportunity is comprised of a four building flex/office/R&D portfolio
Data Center Infrastructure - Existing tenants have
invested significant capital (4 generators on site)
that benefits from great location exposure in east Plano at the intersection of Jupiter Road and 10th Street in
the Plano Industrial Submarket, less than one mile east of the President George Bush Turnpike.
•
Suites range from 7,345 square feet to 43,680 square
feet, accommodating a wide range of tenants
The portfolio offers a desirable balance of stability and opportunity:
•
Stab ilit y – The portfolio is bolstered by 1009 Jupiter Road, a single tenant colocation data center
4 Class A Flex/Office Buildings / Grade-Level
Loading / 100% HVAC Finish / 95%+ Office Finish
focused on business continuity and disaster recovery featuring a redundant uninterrupted power system,
three standby generators, 300 fibers available on 6 underground conduits and a CRAC (computer room air
•
conditioning) system.
Second generation vacancy (43,560 square feet) in
good condition with flexible layout
Opp ortun it y – 2201 Jupiter Road is a 43,560 square foot stand-alone building that was recently
vacated. The second generation vacancy is in very good condition and features 100% HVAC, 10 rear gradelevel loading doors and the ability to demise for a two-tenant scenario.
Building
Size (SF)
Occupancy
#1 - 1009 Jupiter Road
33,460
100.0%
#2 - 2200 10th Street
15,265
100.0%
#3 - 2100 10th Street
34,080
100.0%
#4 - 2201 10th Street
43,680
0.0%
2.82 Acres
Portfolio Total
126,485
65.5%
9.05 Acres
JUPITER
S E RV I C E C E N T E R
Land Size
6.23 Acres
Year Built
Clear Height
Office %
HVAC %
Loading
1999
18'
100.0%
100.0%
Grade Level
1999
18'
100.0%
100.0%
Grade Level
1999
18'
100.0%
100.0%
Grade Level
1999
22'
99.0%
100.0%
Grade Level
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INVEST M E NT OVERVI EW
STRONG industrial & office SUBMARKET FUNDAMENTALS
NEWER VINTAGE, QUALIT Y C ONSTRUCTION
The property resides in the Richardson/Plano Office Submarket, currently one of the
Institutional quality asset–built in 1999, Jupiter Service Center has been institutionally
strongest office submarkets in Dallas/Fort Worth. Richardson/Plano has posted the
designed and maintained since delivery. Comprised of four buildings and 126,485 square
highest year to date positive net absorption among Dallas/Fort Worth’s 17 office
feet, the project provides excellent corporate identity and quality physical infrastructure.
submarkets with 1,566,444 square feet as of the second quarter of 2015, representing
The efficient design allows for a number of uses within the four buildings, from data
44% of the total market’s absorption. Much of the positive absorption can be attributed
storage and light assembly to more traditional office users.
to high profile projects, such as the CityLine project, the build-to-suit home to State
Farm Insurance and Raytheon. This absorption is on top of positive net absorption of
INFILL LO CATION WITH AC CESS AND EXP OSURE
587,337 square feet in 2014, and 1,442,970 square feet in 2013 placing Richardson/
Jupiter Service Center is located 1 mile east of US Highway 75 (North Central Expressway)
Plano as one of the D/FW Metroplex’s top submarkets for net absorption over the last 3
and a half mile north from the President George Bush Turnpike. The President George
years combined.
Bush Turnpike offers a significant east-west route in the northern half of the D/FW
Metroplex. The 52-mile, six-lane, limited access expressway links commuters to high-
The Richardson/Plano Industrial Submarket also demonstrates strong fundamentals with
tech corridors, corporate headquarters, as well as US Highway 75, the Dallas North
an overall vacancy rate of 7.41% at the end of second quarter 2015, a decrease of 44
Tollway, Interstate 35E, and Interstate 635. In addition to highway access, the project
basis points over the last quarter. The flex and industrial market continues to tighten in
has exposure and is accessible along Jupiter Road and 10th Street. The intersection of
Richardson/Plano, and the vacancy rate has consistently trended downward in the past
Jupiter and 10th Street sees an average of 30,000 vehicles per day, according to the
few quarters. The submarket is expected to remain healthy in the near term as rental
CoStar.
rates climb and new users to continue to enter the market place, which should have a
major impact on the flex market. Unlike many other submarkets the Plano-Richardson
market does not have land options to spur a flurry of new developments. As a result, the
Richardson/Plano submarket is projected to remain strong.
HEALTHY DFW INDUSTRIAL AND OFFICE MARKETS
Ranked as the 5th largest Industrial Market nationally, the Industrial Real Estate Market in
Dallas/Fort Worth is extremely healthy. This marketplace has experienced 5 consecutive
years of positive net tenant absorption. This has led to a current vacancy rate of
approximately 7.0%, which is below the historical 15-year norm of 9.3%. Likewise, the
D/FW Office Market has posted strong positive net absorption over the past four years,
with 3,560,233 square feet absorbed as of 2Q 2015, 4,758,812 square feet in 2014,
2,067,046 square feet in 2013, on top of 2,120,449 square feet in 2012 and 2,439,671
square feet in 2011.
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FLEXIBLE BUILDING FUNCTIONALIT Y
The portfolio consists of tenant spaces ranging in size from 7,345 to 43,680 square feet, allowing future ownership tremendous flexibility in organically growing the existing tenancy
and customizing spaces for market demand. The ability to offer such a wide range of sizes has proven beneficial in maintaining occupancy and retaining tenants. In addition to
significant tenant investments, current ownership has invested significant capital to greatly improve the quality of the project and tenant spaces, therefore limiting the need for future
capital expenses.
QUALIT Y IN PL ACE TENANCY
Through its history of institutional ownership and management, Jupiter Service Center has retained high quality tenancy. Currently, the project is leased to four tenants in five suites.
These tenants have an average weighted remaining lease term of 3 years and have invested significant capital to improve their spaces. Global IP Networks, a state-of-the-art data
center, recently expanded from 13,680 square feet to 33,460 square feet and, with the landlord’s help, invested over a quarter of a million dollars into their expansion space.
DISC OUNT TO REPL ACEMENT C OST
Although there are speculative industrial and office projects under construction and recently completed in the Dallas/Fort Worth area, speculative Class A flex product is rare due to
the high cost to develop. Jupiter Service Center offers investors a rare opportunity to purchase a portfolio of high office finish flex product at a significant discount to replacement
cost, anticipated to exceed $130 per square foot.
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1
JU
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H
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STR
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4
A
D
FRISCO
NORTHLAKE
ARGYLE
ALLEN
ALLEN
Lake Lewisville
CORRAL CITY
121
THE COLONY
75
LEWISVILLE
FLOWER
MOUND
PLANO
JUPITER
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TROPHY CLUB
190
ROANOKE
Grapevine Lake
121
35E
WESTLAKE
Addison
Airport
114
ADDISON
RICHARDSON
GRAPEVINE
KELLER
R
SOUTHLAKE
GARLAND
635
635
COLLEYVILLE
820
NORTH
RICHLAND
HILLS
Dallas Fort Worth
International
Airport
161
114
12
BEDFORD
EULESS
IRVING
Dallas Love
Field
75
35E
161
DALLAS
CBD
30
Lake Ray
Hubbard
635
35E
12
30
30
White Rock
Lake
183
30
80
MESQUITE
Industrial Boulevard
S IT E PL AN
Building 4
2201 10th St.
Vacant
43,680 RSF
10th Street
Building 2
2200 10th St.
Building 1
1009 Jupiter
Fortress
Solutions
7,345 SF
Jupiter Road
Vector
Controls
7,920 SF
Global IP
Networks
13,680 RSF
Building 3
2100 10th St.
Fortress Solutions
14,542 SF
Fortress Solutions
11,378 SF
Keynote Systems
8,160 RSF
Global IP
19,780 RSF
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I NVEST MENT SALES
Jamie Jennings
214.267.0452
[email protected]
TERMS AND C ONDITIONS
Offering Pack age Seller is seeking bids for its fee simple interest in Jupiter Service Center.
Terms
James Mantzuranis
All cash; as-is, where-is.
214.267.0494
[email protected]
Submit Offer to
Jamie Jennings or James Mantzuranis
Caitlin Clinton
214.267.0431
[email protected]
L E ASI NG EX PERTS
Stream Realty Partners, L.P. 2001 Ross Avenue
Suite 2800
Dallas, Texas 75201
Facsimile: (214) 210-1452 or (214) 210-1415
[email protected]
Matt Dornak
[email protected]
214.267.0461
[email protected]
C ompany Information
Please provide a complete acquisition history/resume.
Ryan Wolcott
214.267.0412
[email protected]
Financing Disclosure
Please provide evidence of funding, both equity and debt, if appropriate.
Propert y Tours Property tours are available by appointment. Prospects may schedule a tour of the
property by contacting the investment sales team.
JUPITER
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