1. travel
2. tourist destinations
3. national parks

Las Cimas I
804 Las Cimas Parkway
Arboretum Atrium
9737 Great Hills Trail
Portfolio Overview
THE OFFERING
Transwestern has been exclusively retained by the Owner to offer to qualified investors an
opportunity to purchase Las Cimas I and Arboretum Atrium in Austin, Texas.
Las Cimas I and Arboretum Atrium represent two prominent stabilized Class A buildings
located in the coveted Southwest and Northwest Austin submarkets. Individually, these
buildings are highly sought after assets. Combined the portfolio provides the investor with
a unique opportunity to acquire two outstanding office assets in the top two performing
suburban submarkets in Central Texas at in-place rents demonstrably below market. The
assets may be acquired separately or together. However, the buildings complement
one another through the strength of the combined rent rolls as well as the investment
diversification via their locations in separate submarkets.
LAS CIMAS I SUMMARY
Submarket:
Southwest
Classification:
Class A Office
Address:
804 Las Cimas Parkway
Year Built:
1999
Total Rentable Area:
82,787 SF
Parking Ratio:
4.1/1,000
Percent Occupied (as of 7/1/15):
100% (95.5%)
Average In-Place Net Rents:
$19.81
Market Rents:
$25.00
NOI Year 1:
$1,502,322
LAS CIMAS I INVESTMENT HIGHLIGHTS
EXCEPTIONAL LOCATION
Las Cimas Office Park is one of the most desirable and recognizable developments in the
City of Austin.
PREMIER SOUTHWEST AUSTIN SUBMARKET
Las Cimas I presents a rare opportunity to acquire a Class A asset in the acclaimed Southwest
submarket, the highest performing suburban market in Austin with Class A occupancy
standing at 95%.
SUBSTANTIAL RENTAL GROWTH
Since 2010, rental rates have grown 22% in the Class A Southwest submarket; an average
annual growth of 5.5%.
STABLE OCCUPANCY
Epicor, the primary tenant and its predecessors, has occupied the building since construction
and have increased occupancy from 57,120 sf to 72,569 sf. They recently renewed through
June 2022.
PROMINENT CORPORATE NEIGHBORS
The surrounding buildings are home to some of Austin’s most recognizable corporate
neighbors such as Apple, St. Jude, Diversified Funds, Wilson Sonsini and Vitesse.
WALKABLE AMENITIES
Las Cimas I has easy access to many amenities with a Whole Foods Deli next door and The
Village at Westlake across the street, offering a broad array of upscale dining and casual
eateries along with numerous high-end retailers.
CONTROLLED ACCESS
Located at one of only a few traffic lights on Loop 360, allowing easy and safe ingress and
egress.
AFFLUENT ADDRESS
The property is surrounded by the most affluent executive neighborhoods in Austin; West
Lake Hills, Rollingwood, Davenport Ranch, Barton Creek & Lake Travis. Austin Country Club,
Barton Creek Country Club, Lost Creek Country Club are all located within minutes of the
building.
ARBORETUM ATRIUM SUMMARY
Submarket:
Northwest
Classification:
Class A Office
Address:
9737 Great Hills Trail
Year Built/Renovated:
1984 / 2005
Total Rentable Area:
91,083 SF
Parking Ratio:
3.43/1,000
Percent Occupied:
100%
Average In-Place Net Rents:
$16.88
Market Rents:
$22.00
NOI Year 1:
$1,467,693
ARBORETUM ATRIUM INVESTMENT HIGHLIGHTS
ATTRACTIVE CORPORATE ENVIRONMENT
The building has a uniquely beautiful interior presence created by the combination of
the sky-lit atrium and three story window-wall. The natural light combines with the plush
greenery and dual fountains to provide one of the most striking interior atrium spaces in
the city. The Building was fully renovated in 2005 and 2008 with new insulated glass, roof,
EMS, chillers and controls.
ARBORETUM DISTRICT
The Arboretum is the most established and well known mixed use development in
Northwest Austin. The Arboretum includes high-end retail, hotel, multi-family and office
in an ideal park-like setting.
UNEQUALED WALKABLE AMENITIES
The presence of walkable amenities is extremely rare outside of the CBD or The Domain.
The Arboretum at Great Hills and The Arboretum Market both offer a multitude of retail,
fine dining and casual food options within walking distance. The Renaissance Hotel across
the street from the building is the highest rated full-service hotel in Northwest Austin.
OUTSTANDING ACCESS
Conveniently located at the confluence of three of the largest roadways in Austin; US
183, Loop 360 (Capital of Texas Highway) and Loop 1 (MoPac Expressway). This arterial
combination provides ease of access to the affluent Northwest Hills, West Austin, Lakehills,
Lake Travis and West Lake neighborhoods as well as to the bedroom communities of
Cedar Park and Round Rock to the north.
STABLE OCCUPANCY WITH UPSIDE
The Investment touts stable occupancy (100%) yet also offers value enhancement through
mark-to-market of the current tenants. In-place rates average $16.88 NNN and competing
buildings are averaging over $22.00 NNN.
DIVERSE TENANCY
The building contains a balanced mix of small and large tenants. Many of the tenants
have invested above allowance dollars to take advantage of the exposure through the
central atrium space increasing the probability of their renewal.
THRIVING NORTHWEST SUBMARKET
Located in the acclaimed Northwest office submarket which currently stands at 91%
occupancy. The Northwest market is home to many Fortune 500 companies including
Apple, National Instruments, Visa, IBM, Cisco, Amazon and Charles Schwab.
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AUSTIN MARKET
In 4Q14, the Austin multi-tenant office market contains approximately 42.7M square feet of office space. The Central Business District makes up
approximately 22% of the Austin total, and the suburban submarkets account for the rest. Austin’s multi-tenant office market recorded 1,158,340
square feet of positive absorption for the year, which is approximately 254,000 square feet more than the total of 904,306 year-to-date absorption
at this same point in 4Q13. The net year-to-date absorption (excluding sublease) for 4Q14 was positive 1,291,146 square feet, compared to the
4Q13 net year-to-date absorption of positive 939,001 square feet one year ago. The current city-wide occupancy rate is 89.4%, up 0.8% from last
quarter’s 88.6% in 3Q14 and up 1.5% from the year-ago total of 87.9% in 4Q13. Quoted rents for available Class A space averages $34.78 gross
per square foot in 4Q14, up $1.11 from the 3Q14 quoted rate of $33.67 gross per square foot, and up $1.46 from the year-ago quote of $33.32
gross per square foot in 4Q13.
SOUTHWEST MARKET
The Southwest submarket contains approximately 9.4M square feet of multi-tenant office space. Due to limited supply, barriers to entry for
new development and the proximity to executive housing, this submarket generally commands the highest rental rates outside of the Central
Business District and the highest occupancy rate in the city. As of 4Q14, the Southwest submarket had 792,264 square feet of vacancy with an
occupancy rate of 91.6%. This is an increase of 0.8% from 3Q14’s 90.8% occupancy. 4Q14 average quoted Class A rental rates in the Southwest
submarket are $34.87 gross per square foot, a $3.49 per square foot increase from the $31.38 gross per square foot rate quoted last quarter,
and a $2.37 increase from the $32.50 gross per square foot rate quoted one year ago in 4Q13. For Class A and B buildings, operating expenses
average between $12.00 and $15.00 per square foot for the Southwest submarket.
NORTHWEST MARKET
The Northwest submarket totals approximately 12.7M square feet of space and is the largest submarket in Austin. As of 4Q14, the Northwest
submarket had approximately 1.2M square feet of vacancy with an occupancy rate of 90.6%. This is unchanged from 3Q14’s 90.6% occupancy,
and an increase of 1.0% from year-ago occupancy of 89.6% in 4Q13. The average rental rate for Class A space in this submarket is currently
quoted as $30.83 gross per square foot, which is up $0.18 per foot from the $30.65 gross rate quoted in 3Q14 and up $3.50 from the year-ago
quoted rate of $27.33 gross per square foot in 4Q13. For Class A and B buildings, operating expenses average from $12.00 to $15.00 per square
foot.
Arboretum Atrium
9737 Great Hills Trail
Las Cimas I
804 Las Cimas Parkway
HALE UMSTATTD
Executive Managing Director
512.314.3551
hale.umstattd@transwestern.com
LEAH GALLAGHER
Managing Director
512.314.3571
leah.gallagher@transwestern.com