Vacant Hotel for Redevelopment 4225 North Fry, Houston, TX

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1 Main 6 Story Building 105 Rooms - 75,000 sf Potential Revenue $2,200,000 (85$ 70% Occupancy) Vacant Hotel for Redevelopment 4225 North Fry, Houston, TX 124 Rooms - 120,000 sf Potential Revenue $2,200,000 Price: $4.250,000 PSF: 30$/sf - SF: 140,000 sf - Rooms: ~229

2 TABLE OF CONTENT PROJECT DESCRIPTION AERIAL VIEW HOUSTON MAP OVERVIEW VIEW OF HOTEL AND MALL NORTHLINE COMMONS MALL METRO RAIL MAPS PHASE 1 & PHASE 2 DIAGRAM RENOVATION COST ESTIMATES REVENUE & EXIT PRICE ESTIMATES

3 Stabilized value after Phase 1 and Phase 2 range: $14m - $18m. Vacant Hotel For Redevelopment: : $4,250,000 30$/sf PROPERTY DESCRIPTION THE PROPERTY The property consists of 224 rooms, 105 in the main building and. 124 in both of the external buildings. Hotels in Houston sell for around 3.5 times revenue and/or 8%-10% cap rate. PHASE 1: 105 Rooms. Potential Revenue: 2.2M Expected Value Stabilized: $7 Musd - $9 Musd (8-10% cap 33% Margin) The first phase of the project consists of renovating the main 6-Story building with 105 rooms. The first floor of the main building consists of several large meeting rooms / convention areas, a large bar and a large restaurant. Phase 1 renovation cost will range approximately $2.2M - $2.5M and should generate $2.2+ million in room revenue a year (85$ ADR x 105 room x 70% Occupancy). PHASE 2: 124 Rooms. Potential Revenue: 2.2M Expected Value Stabilized: $7 Musd - $9 Musd (8-10% cap 33% Margin) The second phase consists of renovating two (2) external buildings with 124 rooms.. These rooms need a lot more work. The cost of renovations as hotel for the Phase 2 can range between $2.2 - $3 million. Stabilized this section can render $2.2+ million in room revenue a year (69$ ADR x 124 room x 70% Occupancy). PHASE 2 (Option) SELF STORAGE: Seller has approved plans for a Class A 37,000sf Self Storage building, as an alternative should Demolishing the 2-story buildings be a preference. This can render an attractive revenue mix reducing risk for the entire Project. With comparable returns.

4 Vacant Hotel For Redevelopment: : $4,250,000 30$/sf PROPERTY DESCRIPTION THE AREA Former Ambassador Hotel (Howard Johnson) just 5 minutes north of Downtown Houston. Traffic count on this stretch of Interstate 45 is over 300,000 cars per day. Sign for the hotel is one of the tallest in the city boasting over 80 feet in the sky. Located 1 exit from the Houston Heights and 2 lights East of Oak Forest/Garden Oaks. (Home prices range $500,000 and up to $2+ Million.) THE LAND The hotel sits on nearly 4.3 acres, with land valuing approx. $650,000+ an acre, rendering a land value of the hotel $3+ million dollars. This property has the potential of creating cash flow while appreciating the land value as this area may start to become what the Garden Oaks and Heights was 10 years ago. Property values in both of those areas have doubled and in some areas tripled in the past 10 years. The revitalization areas are moving north of 610 and east of Garden Oaks/Oak Forest, directly towards this property. Across the street sits a very popular 850,000 sqft outdoor mall, Walmart Supercenter and Houston Community College campus.

5 Main 6 Story Building 105 Rooms - 75,000 sf Potential Revenue $2,200,000 (@ 85$ ADR - 70% Occupancy) 2-Story Buildings 124 Rooms - 120,000 sf Potential Revenue $2,200,000

6 Commons Mall Houston CBD Subject AERIAL VIEW PROJECT

7 PROJECT bar Lobby Conference Room Hallways Rooms Rooms

8 NORTHLINE COMMONS MALL Directly across the street from the Hotel is an 850,000 sqft outdoor mall that was built in A few of the tenants of the mall are listed below. Adjacent to the Mall is a 19 acre Walmart Supercenter and a 14 Acre Houston Community College Campus. The Mall is also attached to the Metro Rail Line that connects the Northline Mall to Downtown and The Medical Center.

9 METRO RAIL MAPS

10 PHASE 1 & 2 Phase Rooms Cost: $2.2Musd Annual Revenue 2.2Musd Phase 1 & Phase 2 Phase Rooms Cost: $2.2Musd Annual Revenue 2.2Musd Diagram

11 Property Values in the Area $400K-$1.300K Hotel $150K-$325K $200K-$225K RESIDENTIAL PROPERTY VALUES 2 Mile around $500K-$1.2M $750K-$2M Downtown

12 Main Floor Amenities and Room Mix Original Howard Johnson Brochure From Hotel Diagraming Meeting & Conference Rooms Main Building 1 st Story

13 Phase 1 & 2 Renovations Cost Phase 1 & Phase 2 Costs Based On Minimum Requirements Phase 1 Renovation 105 7,000 $/Room $735, Sprinkling Building $430, st Floor Remodel Incl Lobby/Meeting rooms $150, Pool $50, Boiler Room/Elevator Remodel $50, Parking Lot $100, Landscaping $80, Fence $80, Parking lot & Exterior Lighting $20, Clean up Ph.2 Exterior Buildings & Paint $170, Roof $80, Permits / Design $30, New Sign $30, Total Phase 1 Renovations $2,005,000 Phase 2 Renovations - 2 Exterior Buildings & Restaurant 124 Rooms $2, ,000 $/Room $ 1,488,000 Roof $150,000 Restaurant & Bar (optional) $175,000 Total Phase 2 Renovations $1,813,000

14 SELF STORAGE Option: New Class A Building Economics (37,000sf) Scenarios & Revenue Forecast New Construction Cost of a Class A Self Storage building: $3.1 Musd Stabilized phase 2 potential value with Self- Storage (instead of 124 additional hotel rooms) : $5M $6M ** **Based on 5.5 % - 6% cap rate with $334,510 NOI

15 Main 6 Story Building 105 Rooms - 75,000 sf Potential Revenue $2,200,000 (@ 85$ ADR - 70% Occupancy) Contacts Rod Allub, Broker Texas Management Partners 124 Rooms - 120,000 sf Potential Revenue $2,200,000 M: E: rallub@tmp-realty.com