Texas&ICSC&&Case&Study&&Compe11on&

Nelson&Costello,&Evan&Hammer,&&Max&Mueller,&Jameson&Cooper&

Water Tower Forum Problems)•  Excessive&vacancy&•  Ulta&dark&•  Poor&merchandising&•  Parking&Solu,ons)•  Redevelopment&of&Border’s&Box&• Modify&Ulta’s&rent&structure&•  Promote&crossGshopping&•  Parking&garage&

Strategic Goals

Primary&Goals&

Increase&value& Maximize&revenue&

Effec1ve&merchandising&&

Promote&crossGshopping&

Demographics

80%&White&Collar&

$87K&Average&Income&

63%&Educated&

71%& $84K& 49%&

67%& $78K& 44%&

1mi&&

3mi&&

5mi&

Current Merchandising Mix

Projected Merchandising Mix

Legend&

Current&Tenants&

size& &=&%&of&Total&SF&&

Health&Ra1o=&Annual&Rent/&Annual&Sales&&

21.3%&5%&

Legend&

Projected&Tenants&

size& &=&%&of&Total&SF&&

Health&Ra1o=&Annual&Rent/&Annual&Sales&&

21.3%&5%&

Leasing Border’s Box Tyler’s&

True&Food&

Snap&Kitchen&

Idea&Factory&

Border’s Box Development Redevelopment&costs:&$857,160&

•  28,572&Sqb&&•  $30/SqFt&&

Pier 1

• $187&sales/SqFt&• Does&not&generate&traffic&• Prime&loca1on&• $750,000&buy&out&

Pier 1 Development

Redevelopment&costs:&$32,960&

•  $20,000:&electrical/u1li1es&•  $12,960:&2x&108&LnFt&wall&($60/LnFt)&

Restaurants

• UpGscale&casual&• Ground&leases&• 1,000&SqFt&pa1o&

Other Retail Options

Tenant Development Vacant&Space:&DG111&&• Redevelopment&costs:&$22,400&

•  $20,000:&electrical/u1li1es&

•  $2,400:&40&LnFt&wall&($60/LnFt)&

Tenant Development Vacant&Space:&AG107&&&AG109&• Redevelopment&costs:&$26,480&

•  $20,000:&electrical/u1li1es&

•  $6,480:&108&LnFt&wall&($60/LnFt)&

Development: Lots 2 & 3 Restaurants&

•  Lot&2:&$173.20/SF&to&develop&

•  Lot&3:&$161.32/SF&to&develop&&

•  9%&to&10%&return&•  Two)$150,000)Ground)

Leases)

Development: Lot 1 Parking&Garage&

Funded&by&Midtown&University&

$100,000&Ground&Lease&

4&Levels:&2&University,&2&Water&Tower&

223&Parking&Spots&added&

Total Costs

$8,331,448&•  Tenant&Allowances:&$40/SqFt&(Microsob&$100/SqFt)&

•  6%&Leasing&commissions&•  Average&rental&rates:&

•  Previous&tenant&average:&$28.21/SqFt&

•  New&tenant&average:&$32.70/SqFt&

•  16%&increase&

Municipal Parking

•  4.5&for&Retail&•  9.5&for&Restaurants&•  Current&parking&ra1o&2.6:1,000&SqFt&

Standard&Parking&

•  223&parking&spots&added&to&center&•  Projected&parking&ra1o&4.1:1,000&SqFt&

Stabilized&Parking&

Capital Improvements

Highway&

•  Signage&•  JointGmarke1ng&sign&

• Pocket&parks&

Management Ulta Beauty Problems)•  Decreased&traffic&•  No&crossGshopping&&Strategy)• Restructure&lease&

Capital Markets

Current&ValueG&$20,464,035&• Value&PSF:&$130.90&

Stabilized&ValueG$59,859,649&• Value&PSF:&$343.75&

Valua1on&

Capital Markets Financing

LTV:&55%&&($32,922,807)&

Interest&Rate:&4%&for&5&years&10&year&term&

Amor1za1on:&30&years&

The New Water Tower Forum

• Redeveloped&Border’s&Box&•  Successful&reGmerchandised&center&

•  Tenants&with&healthy&sales&• An&open,&opera1ng&Ulta&genera1ng&foot&traffic&

• A&vibrant&center&with&a&successful&future&

Texas&ICSC&&Case&Study&&Compe11on&

Nelson&Costello,&Evan&Hammer,&&Max&Mueller,&Jameson&Cooper&