Accenture Laureate Drive - 2020-HFF-119216

Jones Lang LaSalle (“JLL”) is pleased to offer the exclusive opportunity to purchase Accenture Laureate Drive (the “Property”), an 89,928 square foot, Class A office asset located in San Antonio, TX. 100% leased to Accenture (S&P: A+, NYSE: ACN) through December 2030, the Property is a mission critical facility for Accenture’s Federal Services division serving Accenture’s Federal Government clients worldwide. Located in Northwest San Antonio, one of the fastest growing submarkets in the city, Accenture Laureate Drive is situated along Interstate 10 in an exceptional infill location catering to decision makers and employees alike by providing convenient drive times between desirable residential areas and popular entertainment destinations. With Accenture contributing in excess of $3.3 million of their own investment into the space, the offering presents an impressive cash-flow opportunity secured by investment-grade tenancy committed to the location.

10-YEAR INVESTMENT GRADE LEASE PROVIDES STRONG, STABLE CASH FLOW

-         Recently signed 10-year lease extension and consolidation of previous leases demonstrates Accenture’s long-term commitment to the Property

-         Built-in rental rate increases of 2.0% annually help to hedge against inflation while providing a 18% increase in NOI over a 10-year hold period

-         NNN lease structure protects landlord from future operating expense increases

-         Substantial tenant investment coupled with a best-in-class office location reduces potential rollover risk

MISSION CRITICAL ACCENTURE FACILITY

-         Located in the heart of Northwest San Antonio, the Property is a state-of-the-art facility that provides support to many of Accenture Federal’s largest and longest-term clients

-         Accenture Federal Services currently employs more than 1,600 people at its San Antonio Advanced Technology Center and announced plans in 2019 to invest nearly $5 million and add 500 full-time employees over the next four years to enhance the Technology Center’s operations, which provides cybersecurity, application, cloud & infrastructure services to government agencies and the Department of Defense

-         Accenture has made a significant investment of over $3.3 million beyond landlord contributions to upgrade the Property to meet Accenture’s best-in-class corporate standards, demonstrating strong commitment to the location

-         The Property provides Accenture with fully redundant backup power through a Cummins, 1250 kW emergency diesel generator and ups battery systems

ROBUST PROPERTY FUNDAMENTALS

-         Featuring an above-market parking ratio of 5.4:1,000 SF distinguishes the Property from its competitive set with an average parking ratio of 3.4:1,000 SF

-         The infill nature of the Property provides quick and easy access to and from the Property through proximity to Interstate 10 with connectivity to the city’s major economic hubs via Loop 410 and Loop 1604

-         Recent renovations to the Property include parking lot upgrades, new wrought iron security fencing around perimeter of property, new landscaping, elevator modernization to elevator #3, resurfacing and resealing of the atrium roof, and upgrades to the electrical and HVAC system, mitigating the likelihood of required significant capital injection by a new owner

-         The Property is marketed at a significant discount to replacement cost, decreasing the probability of competitive product being constructed in a submarket that is experiencing rising land costs

SUPERIOR NORTHWEST LOCATION

-         Positioned along Interstate 10, one of the region’s most vital and traveled highways, offering excellent visibility and convenient travel times for both employees and visitors of Accenture Laureate Drive

-         Centrally located between the City’s two primary highway loops, Loop 410 and Loop 1604, providing superior accessibility to attractive residential areas such as Shavano Park, Oak Hills, Castle Hills, Leon Valley, and the Dominion

-         The Property’s central location in the heart of northwest San Antonio is in close proximity to La Cantera, The Rim, South Texas Medical Center, and the University of Texas at San Antonio

-         Accenture Laureate is proximate to a deep amenity base of 24 MSF of retail within a 5-mile radius with shopping and entertainment destinations like La Cantera, The Rim, Huebner Oaks Shopping Center, and North Star Mall