NORTHWEST
AUSTIN SUBMARKET
Located
at 6101 West Courtyard, the Shepherd Mountain Office Condominiums
(the “Project”) are nestled in a northwest Austin suburban area.
The location gives a beautiful view of nearby Lake Austin, Austin
Country Club and downtown Austin. The building has a sprinkler,
standpipe, and smoke alarm system that is monitored 24 hours a day.
The site has a concrete parking slab, and its construction quality,
appearance, and unique location will continue to make this a desirable
property for the long term. The Project is located approximately
four miles from the Arboretum and near the 3M and IBM complexes.
Other high technology companies in the area include Dell Computers,
National Instruments, Digital Equipment, and Novell. Downtown
Austin is approximately 10 miles from the Project. The Project
is adjacent to several other Class “A” office complexes, including
the Millennium, Shepherd mountain Plaza, Novell and Bridgepoint.
The nearby subdivisions of The Courtyard and Davenport Ranch contain
single-family homes, which range in value from $400,000 to $1,500,000.
Additionally, there are two upscale apartment complexes that are currently
leasing for an average in excess of $1.10 PSF. The quality homes
and complexes in the area combined with the exquisite view and easy
access create an excellent location for office condominiums.
Firms
in the high technology and Internet markets located in the Northwest
Austin area have made the Shepherd Mountain area a high technology
center. Public awareness of local environmental issues makes
future new construction more costly and perhaps unlikely in the short
term. Since we believe new construction is unlikely in the short
term, we anticipate occupancy rates and rental rates will continue
to rise in this submarket as the economy recovers. The average
rent PSF for the Northwest suburban Austin market is $17.55 with an
overall occupancy of 78%
Shepherd
Mountain Office Park has been developed according to the standards
and codes in existence in 1985 and 1986. The location atop the cliffs
of Lake Austin create one of the most impressive low rise developments
in the area. The physical appearance of these buildings is excellent
and they are well designed and fit the site in a well thought out
manner. The buildings are constructed of red brick with glazed
tin roofs. The building was constructed in 1986 and was last
renovated in 1992. The building was designed in a residential
character and utilize residential materials to appease the neighborhood
association.
This
project was developed under an 'office' zoning and parking is scheduled
as 1 space for 300 square feet of gross building area. Each
office condominium includes 8 parking spaces within the Shepherd Mountain
office park. Building height is limited to 35 feet or two stories.
All conditions of the zoning and P.R.A. have been met according to
the approved plans and site inspections.
As
of Second Quarter 2004 current expenses are running $6.40
per square foot not including electricity and janitorial. The
property management and leasing company is handled by Sandalwood
Management.
Border
Entertainment Tenant Profile (2,767 SF - Suite 200)
Border
Entertainment has a five year NNN lease through April 2005.
Border Entertainment currently pays $19.50 PSF along with $4.83 PSF
expense reimbursements. Budgeted expenses for 2005 are approximately
$6.40 per square foot.
Vacant
Suite (2,767 SF - Suite 210)
A division of Schlumberger has a five year NN lease, covering electricity and gas, through November 2009. The tenants currently pays $14.50 PSF along with approxiamtely $2.25 PSF expense reimbursements. Budgeted expenses for 2005 are approximately $2.25 per square foot.
Please call us immediately
if you have any interest or to request a package.
CONTACT: Ayn
Agarwal (512) 328-2543
