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Opportunity to buy tract at major intersection outside Austin next to new hospital



Opportunistic clients might want an exceptional tract of land at a major

intersection outside Austin, Texas which is next to a brand new hospital -

the largest in the county. There is an opportunity to buy the entire 1021

acre parcel for $20 million even though the attached BPO which was done a

year before the hospital opened valued the property at $43.9 million - if

they can move fast.



Marble Falls Partners owns the colored parcel shown below at the

intersection of Highway 71 (which goes east-west through Austin) and Highway

281 (which goes north-south from Dallas to San Antonio).



The largest hospital company in the state, Baylor, Scott & White Hospital

opened what is the largest hospital in the county just to the west of our

site in August 2015



THE HOSPITAL IS DOING SO WELL THAT IT IS ALREADY EXPANDING:



According to George Russell, the former Mayor of Marble Falls who was, until

last December, on the Board of Baylor Scott & White Hospital, each

department in the hospital is doing 2x to 3x what they had originally

projected. As a result, they are 1) increasing the number of doctors by 15%,

2) building another operating room, 3) buying another CT-Scan, 4) providing

chemotherapy treatments and 5) as the next phase, building a cancer

treatment center in a new building adjacent to our entrance road.



There is a real shortage of apartment buildings in the area. Apartment

occupancies in Marble Falls are very high (98.5%) which have an average age

of 20 years! All the apartments built since 2005 are 100% occupied with

waiting lists. The advent of the Baylor, Scott & White Hospital next to this

site makes the property ideal for multi-family development.



The existing inventory of apartments in Marble Falls is so old and

unattractive that many renters prefer to rent houses (and a two bedroom

house built in the 1960s would cost about $1,200 per month). The newer

apartments are being rented at around $900 for a one bedroom and $1,200 for

a two bedroom apartment. I would imagine that a new, attractive apartments

near the hospital would get a very large percentage of the renters overall

in Marble Falls and almost all of the demand from doctors, nurses,

administrators and staff at Baylor, Scott & White Hospital.



6-May-14



6-Jun-16



Year Built



Alta Vista



693-5632



99%



No answer



1985



Creekside



693-1100



90%



100%



1984



Stony Ridge



693-1100



90%



100%



1984



Highview Retirement



693-5818



100%



100%



1985



Marble Falls Duplexes



693-1100



90%



100%



1998



Southwest Village



798-8259



92%



98%



1998



Turtle Creek



798-8259



100%



96%



1998



Gateway Meadows



693-9977



Not surveyed



100%



1998



Cottages @ Gateway



693-9977



Not surveyed



100%



1999



Claremont Duplexes



693-1100



90%



90%



2001



River Crest



693-4711



95%



100%



2002



Highland Oaks



693-0460



98%



100%



2003



Vistas



798-8171



99%



95%



2004



Ridgemont Village



798-2700



100%



100%



2005



Oak Creek Townhomes



693-9800



100%



100%



2013

Facing West



The 1,000+ direct and indirect jobs being created at the hospital is a

strong driver for housing demand.



There are also excellent opportunities to develop single family housing,

assisted living facilities, skilled nursing facilities, Alzheimers/Memory

Care facilities, pharmacies, and a hotel next to the hospital.



The zoning map for our 1,000 acres is shown below and if you look at the

attached file called Conceptual Master Plan Zoning you will see that there

Are several sites designated for multi-family in addition to more than 700

acres for single family.



There is also the opportunity to step into another multi-family developer,s

shoes who had gone through the HUD process up to the stage of getting a

letter of invitation for a non-recourse HUD 221(d)(4) loan for market rate

housing (a copy of which is attached) but unfortunately his equity investor

fell out before he could purchase the property from us. This provides 90%

loan-to-value non-recourse loans from the government at very cheap rates



I have enclosed some information about his plans based on a 7.4 acre site

they were planning to build near the Highway 281 entrance (which has a

higher traffic count than Highway 71 and which some people think will be the

next major north-south corridor through Texas like I-35). He had done the

application through Love Funding and they would undoubtedly require that the

appraisal which that developer had gotten (also attached) be updated but if

you liked their site and plans it could probably be a very fast easy

transition if you wanted 221(d)(4) money.



I have enclosed the original feasibility study the City did regarding the

hospital which was undoubtedly one of the factors motivating Baylor, Scott &

White to buy the land and build there. While that 2006 study is very dated,

demand has only gotten greater. The hospital sits on the border of Llano and

Burnett Counties. Llano is the oldest county in Texas and Burnett is the

18th oldest county. I have also enclosed their projections about the jobs

impact - more than 1,000 direct and indirect jobs.



The growth of businesses going west from Austin along Highway 71 has

stimulated a number of rapidly growing developments on and around Highway

71. Many of the employees at the Baylor, Scott & White Hospital commute from

a long distance away and we met several commuting from Sweetwater. Obviously

housing near the hospital would be much more attractive to people working

there than the developments miles away.



In addition to residential developers attracted to our property, Harvard

Investments is doing a mixed use development just south of the Highway 71 /

281 intersection which will have 700 homesites on 240 acres. Unlike that

site, we have City water and sewer already onsite.



As Austin,s sprawls to the west along the lakes, this is the next major

intersection to get developed. The City of Marble Falls is very eager to see

this intersection get developed and is far easier to work with than a city

like Austin is.



Please let me know if you have any questions.

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