5107 EAST

RIVERSIDE
DRIVE
INTRODUCTIO
N
Ashton Gray Development is pleased to offer the opportunity to invest in 5107 East
Riverside Drive, (the “Property” or “5107 E Riverside”), a 2.628-acre (114,470
square foot) parcel of land in Austin, Texas. The Property is situated on one of
southeast Austin’s main east-west thoroughfare’s, and part of the Riverside transit
orientated district. Situated on a hard corner, this infill location allows for easy
access to all major freeways and only a short drive to downtown and the Austin
Bergstrom International Airport.

Due to the Properties ideal infill location and favorable zoning within the transit
orientated district, 5107 East Riverside is surrounded by a rapidly growing
submarket in Southeast Austin. The Property is located across the street from the
highly anticipated Project Catalyst, a 97-acre planned mixed-use development that
was approved by the zoning commission towards the end of 2019. The multi phased
project expects to deliver over 4,000,000 square feet of commercial office space,
60,000 square feet of medical office, 435,000 square feet of ground floor retail,
over 4,700 multifamily units, and 600 hotel rooms and will further create higher
appreciation in the area than other locations within Austin. In addition to Project
Catalyst, the Property is located within a mile of Oracle’s newly delivered $200
million cloud campus with over 980,000 square feet of office and capacity for up to
10,000 employees at full buildout.

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 ZILKER PARK UT AUSTIN
351-acre metro park 51K students
DOWNTOWN AUSTIN 10 minute drive
14 minute drive
105K employees
SOUTH LAMAR 10 minute drive
Shopping/entertainment district
12 minute drive HYDE PARK
Trendy neighborhood
10 minute drive

SALTILLO
Mixed-use development
35
9 minute drive MUELLER REDEVELOPMENT
Mixed-use development
RAINEY STREET HIKE & BIKE TRAIL 12 minute drive
SOUTH CONGRESS Entertainment district 10 mile riverside trail
Shopping/entertainment district 7 minute drive 5 minute drive
9 minute drive

ORACLE
ST. EDWARD’S UNIVERSITY
SOUTHSHORE DISTRICT 10K future employees
4,300 students
Mixed-use development 4 minute drive
8 minute drive
4 minute drive

ROY G. GUERRERO PARK

400-acre metro park
5 minute drive
5107 EAST RIVERSIDE PROJECT CATALYST
Future 97-acre mixed-use
3 minute drive
E. R
IVE
RSI
DE
DR

EB LVD
GROV
OLTOR
DR F

5107 EAST RIVERSIDE IS LOCATED WITHIN A 10 MINUTE DRIVE

MON
TOPO
LIS DR
OF DOWNTOWN AUSTIN AND ALL ITS SURROUNDING
AUSTIN-BERGSTROM
AMENITIES. NEW DEVELOPMENT CONTINUES TO GROW
INTERNATIONAL AIRPORT
6 minute drive BEYOND THE CBD LIMITS AS THE RAPIDLY RISING COST OF
71
LIVING HAS LED TO RESIDENTS TO LOOKING FOR
DOWNTOWN-ADJACENT LIVING AT
3 MORE AFFORDABLE RATES.
PROJECT
CATALYST
In October 2019, Austin City Council voted to rezone 97 acres at East Riverside Dr
and Pleasant Valley Rd, thus kicking off the official plans for the ambitious Project
Catalyst development. Project Catalyst will redevelop the area into a mixed-use
destination with towers rivaling those of downtown skyscrapers. Due to its similarity
in size, the project is being nicknamed “The Domain on Riverside” with initial plans
EA
PL D
R
S AN
T
VA
LL
EY

E. RIV
ERSID
E
PROJECT CATALYST
Future 97-acre mixed-use

DR
calling for 4 million square feet of office space, 600 hotel rooms, 4,700 residential
units, 435,000 square feet of ground-floor retail, and 60,000 square feet of medical 5107 EAST
office space. Project Catalyst aims to become a transit-friendly development near RIVERSIDE
Austin’s core, contributing to a more dense and connected city. The first phase is
expected to begin in two to three years with the entire buildout spanning over the
next two decades.

BY THE NUMBERS

9 4
7
ACR
ES MILLIO
SQUARE FEET
OF OFFICE

435,00 N 60
0 0 4
SQUARE FEET OF HOTEL
ORACLE PHASe II OF THe
CAMPUS, AN eIGHT-
STORY BUILDING ACROSS 25
0.9
MILES
Phase I of Oracle’s new $200 million cloud campus, The Waterfront, is a ACReS, IS CURReNTLY FROM SITE
560,000 square foot Class A office complex just south of Lady Bird Lake
and less than a mile from 5107 East Riverside. Oracle set out to build this UNDeR CONSTRUCTION
impressive campus to focus on cloud computing technology and expanding
its sizable Austin presence by thousands of employees. The facility design
AND wILL ADD 420,000
includes flexible, forward-thinking spaces featuring large floorplates and
SQUARe FeeT OF OFFICe

980K
10’ ceilings for abundant natural light and thoughtful connections to
nature and the outdoors — including a stunning outdoor plaza — that SPACe. THE
provide workers with the opportunity to reflect and recharge. Amenities
include multiple cafes and state-of-the-art wellness and fitness facilities. WATERFRONT IS
CURRENTLY HOME TO
3,000 EMPLOYEES WITH SQUARE FEET AT
ROOM FOR UP TO COMPLETION
10,000 AT FULL BUILD-
OUT.

3K
CURRENT EMPLOYEES

5
10K
FUTURE EMPLOYEES
AREA
DEMOGRAPHICS
MILLENNIAL SPOTLIGHT

The city of Austin has seen a surge in millennial population growth. According
37.8%
to Witten Advisors, Austin boasts an above-average millennial concentration of OF POPULATION HAS
33 percent. This generation is now the largest, most-educated group of workers
in America, expected to represent nearly 75 percent of the workforce by 2030. A COLLEGE DEGREE

WITHIN 26.9
MEDIAN AGE

ONe MILe
OF THe 22%
POPULATION GROWTH

SITe, SINCE 2010

MILLeNNIALS $238,41
MAKe UP 9
Within a one-mile radius of the site (U.S. Census

37.2%
Bureau)

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MEDIAN HOME VALUE
MARKETING
TEAM
URBAN SPACE

Urbanspace Real Estate+ Interiors was founded in 2000 out of Kevin

Burns’ passion for downtown and the urban core of Austin, Texas. Born
out of an entrepreneurial vision to develop an on-theground real estate
firrn that could uniquely provide turn-key solutions to the needs of urban
core residents, Urbanspace has led the way for live/work/play URBANSPACE HAS PROVIDED ITS
development as the original urban core real estate service provider,
evolving into a full-service firrn specializing in residential real estate, SERVICES FOR SOME OF
project sales + marketing, and interior design + furniture.
AUSTIN’S MOST HIGH-PROFILE
Urbanspace’s successful project track record varies across product size,
type and location throughout the urban core. With field-proven experience
RESIDENTIAL PROJECTS.
in the comprehensive breadth of project sales and marketing endeavors,
Urbanspace serves to simplify the complexity of launching a luxury
residential development by providing turn-key strategic and operational
services. Leveraging our wide breadth of local knowledge, years of
experience, international design acumen and a shared desire for living the
urban lifestyle, Urbanspace has driven the real estate and design growth
of Austin’s urban core for two decades.

The Urbanspace Real Estate team is comprised of accomplished

professionals who excel in large-scale real estate development, resale and
leasing in central Austin. We specialize in comprehensive brokerage
services, project marketing, and development facilitation for areas of
dense population, infill land, and properties situated in compact, human-
scale environments. Bringing a superior level of service, leadership, and
creativity to every transaction has been our motivating force.

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MARKETING
TEAM
LIKE/KIND PROJECT
HIGHLIGHT THE LAAN | 53
UNITS
• 3 story town home residences on a 3 city
block long site nestled in 78704
• 100% sold out
• Services provided by Urbanspace:
» Complete design and build-out of website Design of all coffateraf
marketing materials
» Alf print, social media, and onfine advertising Event planning and
coordination
» Floor plan consultations
» Project pricing matrix and implementation
» Safes and management from reservation to close Weekly
financial reporting
» FF&E of aff units as well as common spaces

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PROJECT
SUMMARY
With the rapid growth of the area the residential market has seen tremendous growth
over the past several years with 1,000s of Class A luxury multifamily units delivered and a
few townhome subdivisions. Ashton Gray Development through its feasibility period have
identified that the market has a tremendous demand for a single-family residential project
in an area with limited availability of raw land and single-family housing within this
Site Information
Address

Land Size
5107 East Riverside Drive

2.65 Acres
corridor. As multifamily rents continue to see significant year-over-year growth the Unit Type 2 Bed / 2.5 Bath
market has created a unique demand that will allow renters of the typical mid-rise Number of Buildings (Duplex) 22 Duplexes
multifamily project to rent single family home product around the same cost per month
that they spend at an apartment. The most notable property that conveys this is the
Number of Units 44 Units
Edison, a few sites down from the Property which has been able to achieve rents on their Avg Unit Size 1,200 SF
2 bed 2 bath units between $2,150 and $2,690 per month. Right in line with most single-
Net Rentable Area 52,800 SF
family leases signed in this area.
Avg Market Rent per Month $2,400
Ashton Gray is proposing to develop a total of 44 units comprised of 22 duplexes. The Avg Market Rent per Square Foot $2.00
duplexes will consist of 1,200 square foot units for a total of 52,800 square feet of
Units per Acre 17 Units per Acre
rentable building area on the site.
Expected Delivery Aug-2022

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PROjeCT
COSTS
Construction Costs
Units 44
NRSF 52,800 SF
Gross SF 52,800 SF
Land Area 114,502 SF
Total
Land $3,500,000
Closing Costs $280,000
$3,780,000
Land Improvements
Hard Cost SF Amount
Structural Construction 52,800 6,864,000
Civil / Land Development / Utilities 52,800 1,056,000
Total Hard Cost without Land $7,920,000

Soft Costs
Architectural and Supervision $ 70,000
Engineering Consultants $ 165,000
Closing $ 75,000
Permits $ 115,000
Impact Fees $ 57,675
Parkland Dedication Fee $ 67,111
Property Taxes Pre Operation $1,525.25 Per Unit $ 168,318
Construction Interest - 4.5% 21 months $ 469,455
Borrowers Legal $ 25,000
Working Capital $ 160,000
Lender Financing Fee 1.00% $ 100,000
Total Soft Costs $1,472,559
Total Project Costs incl Escrows $9,392,559
Developer Fee 3% of Project Cost without Land $276,977
Add: Land Costs $3,780,000
TOTAL PROJECT COST $13,449,536

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ReTURN
ANALYSIS
Sources & Uses

SOURCES
Debt Funding
%

77%
TOTAL

$10,347,755
INVESTOR LEVEL RETURN METRICS

1.57X
LP Equity Funding
Sponsor Funding
22%
1%
$2,941,781
$160,000
EQUITY MULTIPLe
TOTAL SOURCES
USES
99% $13,449,536
22.80%
Land Costs 28% $3,780,000 AVERAGE ANNUAL
Hard Costs 59% $7,920,000
RETURN (NON-
Soft Costs & Carry Costs
Working Capital
12%
1%
$1,589,536
$160,000
PURCHASe)
TOTAL USES 100% $13,449,536
30.80%
Construction Debt AVERAGE ANNUAL
RETURN (PURCHASE
Senior Note $10,347,755 OPTION)
LTC 77%
Term 36 Months $157,000
ReTURN PeR $100K
Interest Rate 5.50%

*The investment summary, projections and financial analysis have been prepared by Ashton Gray based on current market and economic conditions, which
are not guaranteed and are subject to change from time-to-time. Prospective investors should perform their own due diligence and analysis of the
prospective investment.

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PURCHASE OPTION
SUMMARY
We are offering investors a chance to participate in the ownership of rental property in
one of the fastest appreciating submarkets within Austin. This offer will only be reserved
for a total of 20 units out of the 44 units and will be only be available on a first come
first serve basis.
Purchase Option Summary
Minimum Initial Investment

Additional Investor Incentive

$100,000

$20,000

A $100k investment in the development yields and covers your down payment, coupled Total Return (Non-Purchase) $157,000
with tax free gains and additional savings through the investor incentive being provided to Hypothetical Total Return with Investor Incentive $177,000
investors that elect to choose this option.

The break down of the down payment ($77,000) for the purchase can be further broken
down with the $57,000 return from the development and an additional $20,000 investor
incentive that would only be provided to investors that elect the purchase option.

10 REASONS TO OWN RENTAL PROPERTY IN

AUSTIN...
1.#1 BEST PLACES TO LIVE IN THE U.S. (US NEWS, 2017, 2018, 2019, 6.#1 BEST STATE CAPITALS TO LIVE IN (WALLETHUB
2020) 2020)
2.#1 TECH CITIES IN THE U.S. (COMPTIA - TECH TOWN, USA) 7. #5 MOST RECESSION-RESISTANT CITY
(SMARTASSET, 2020)
3.#1 AMERICA’S BEST JOB MARKET (WALLSTREET JOURNAL, 2020)
8. #19 FASTEST GROWING CITIES IN THE WORLD
4.#1 BIGGEST BOOMTOWN IN AMERICA (MAGNIFYMONEY, 2018)
(JLL, 2020)
5.#1 BEST U.S. MARKET FOR REAL ESTATE INVESTMENT (URBAN LAND
9. #1 HOTTEST JOB MARKETS (WSJ 2018, 2019, 2020)
INSTITUTE, 2019)
10.#11 HEALTHIEST CITIES IN THE U.S. (WALLETHUB
12 2019)
INDIVIDUAL UNIT FINANCIAL
ANALYSIS
Operating Income
Monthly Rent
Total Gross Annual Rent
Total Other Operating Income
Effective Gross Income
$2,400
Investors that elect to take part of the purchase option have the opportunity to see
additional returns through investor incentive programs, tax savings and immediate
appreciation upon achieving stabilization. In addition to the $20,000 investor incentive
provided, investors will have the opportunity to see an appreciation of $15,000 in
value upon lease up based on the individual unit financial analysis. This opportunity
$28,800
allows investors to earn a higher return on their investment without the burden of
$125 having to pay capital gains tax on the additional value provided and created during the
project’s life cycle.
$28,925

Operating Expenses

General & Administrative $114

Contract Services $793

Repairs & Maintenance $120

Make-Ready $200

Marketing $313

Real Estate Taxes $6,841

Insurance $500
Sale Analysis
Total Operating Expenses $8,881 NOI $20,044

Cap Rate 5.00%

NET OPERATING INCOME $20,044 Value $400,886

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5107 EAST
RIVERSIDE
DRIVE