BAMMEL BUSINESS PARK FIVE CLASS A INDUSTRIAL WAREHOUSE BUILDINGS HOUSTON, TX

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1 FIVE CLASS A INDUSTRIAL WAREHOUSE BUILDINGS HOUSTON, TX 1

2 HFF EXECUTIVE SUMMARY Overview HFF is pleased to offer for sale Bammel Business Park (the Property ), five Class A industrial warehouse buildings comprised of 246,450 square feet along Beltway 8 in Northwest Houston. The Property is currently 72% leased to seven tenants, encompassing a blend of global, national, and regional tenants representing a diversified range of business sectors but with virtually no oil and gas exposure. With 70,000 square feet remaining of current vacancy, Bammel Business Park provides investors a unique opportunity to capture outsized income growth, via the lease-up of the vacancy in Houston s premier submarket that is currently 95% occupied. 2

3 INVESTMENT HIGHLIGHTS Designed and Constructed for the Modern Industrial Tenant» Built in 2008 with 24 foot ceiling clear height and preferred office finish of 12.6%» 200 foot shared truck court depths provide big rigs ample room for maneuverability» Appeals to a wide array of industrial users seeking modern industrial space in Houston s Northwest submarket Diversified Tenant Mix Virtually No Direct Oil and Gas Exposure» Impressive corporate clientele with a tenant roster that includes Winfield Solutions (Land O Lakes), Gruma Corporation (Mission Foods), Motion Industries, and Lapp Tannehill» Major industries represented include Commercial Printing, Agriculture, Food Products, and Industrial Distribution Outstanding Vehicular Visibility and Access» Visibility to Beltway 8 which experiences over 150,000 vehicles per day» Immediate access from Beltway 8 frontage road with 6 points of ingress-egress Proximate to Bush Intercontinental Airport and Houston s Fastest Growing Residential Population» Industrial tenants are seeking real estate options that are proximate to both the airport and Houston s fast growing population base» Residential population in the Northwest along Beltway 8 and The Woodlands has exploded over the last five years averaging 5-10% growth; 2-3 times the Houston average and 4-6 times the national average» The positive growth trend is forecast to continue with growth in the Northwest doubling the Houston citywide average Immediate Value Creation» Opportunity to double the NOI; over the first 3 years of the hold period by doing the following: Lease up of 70,000 square feet of vacant space Mark to market opportunities with 130,000 square feet expiring over the next three years at rates 4.9% below market Consistent base rent steps increase colateral cash flow Capitalize on Northwest Houston Industrial Demand» The Northwest submarket has been the recipient of significant institutional investment by Liberty Property Company, DCT, First Industrial Prologis and Clarion, among others.» Rent growth over the last five years reflects an impressive 6.7% CAGR.» Occupancy in the Houston industrial market and northwest industrial submarket is 94.3% and 94.7%, respectively.» The Houston market absorbed just under 9 million square feet in 2016, with the Northwest submarket accounting for almost 60% of the total net absorption. 3

4 HFF THE WOODLANDS LOCATION OVERVIEW Parkway Proposed Grand Location Map TOMBALL SPRING KINGWOOD HUFFMAN 6 George Bush Intercontinental Airport ATASCOCITA Lake Houston HARDY TOLL ROAD Bear Creek Pioneers Park West Houston Airport ENERGY CORRIDOR CBD CINCO RANCH George Bush Park/Eldridge WESTCHASE GALLERIA BAYTOWN ALIEF PASADENA ALT William P. Hobby Airport Sugar Land Regional Airport SUGAR LAND MISSOURI CITY Ellington Field RICHMOND CLEAR LAKE Houston Ship Channel PEARLAND Clear Lake 4 FRIENDSWOOD

5 LOCATION OVERVIEW Trammell Crow/Clarion Partners Liberty Property Trust Liberty Property Trust Levey Group DCT DCT Bentall Kennedy 50,000 CPD East Group Liberty Property Trust East Group NOV/Drake NOV/Drake Adler Kawa 158,000 CPD 5

6 HFF PROPERTY OVERVIEW Site Plan BUILDING 1 (4818) BUILDING 2 (4814) Bammel North Houston Road 180 Tract 1: 2.54 Acres 203 BUILDING 3 (4822) Tract 4: 2.57 Acres Tract 2: 1.58 Acres BUILDING 4 (4810) Tract 5: 2.06 Acres 140 BUILDING 5 (4710) C h a m p i o n s G r e e n D r i v e 180 Tract 3: 5.38 Acres BUILDING 6 (NAP) BUILDING 7 (NAP) 6

7 PROPERTY OVERVIEW Property Summary Building/ Address Year Built Rentable Area % Leased # of Tenants Avg. Remaining Term Office Finish Building Type Building Depth Truck Court Clear Height Column Spacing Land Area Parking Spaces Building N Sam Houston Pkwy W ,250 SF % Years +/- 9.5% Class A Tilt-Wall Industrial Warehouse 165' 203' (shared) 24' 52' x 40' (45' speed bays) 2.54 Acres (Tract 1) 48 Building N Sam Houston Pkwy W ,700 SF % Years +/- 19.1% Class A Tilt-Wall Industrial Warehouse 165' 203' (shared) 24' 45' x 40' (45' speed bays) 1.58 Acres (Tract 2) 43 Building N Sam Houston Pkwy W ,000 SF 50.00% Years +/- 13.7% Class A Tilt-Wall Industrial Warehouse 180' 203' (shared) 24' 52' x 40' (middle bays) 47' x 40' (end bays) (60' speed bays) 2.57 Acres (Tract 4) 59 Building N Sam Houston Pkwy W ,000 SF % Years +/- 15.8% Class A Tilt-Wall Industrial Warehouse 180' 203' (shared) 24' 52' x 40' (middle bays) 48' x 40' (end bays) (60' speed bays) 2.06 Acres (Tract 5) 46 Building N Sam Houston Pkwy W ,500 SF 50.00% Years +/- 10.2% Class A Tilt-Wall Industrial Warehouse 180' 140' 24' 52' 6"" x 40' (60' speed bays) 5.38 Acres (Tract 3) 47 TOTAL/AVERAGE ,450 SF 71.70% Years +/- 12.6% 165' - 180' 203' (shared) - 140' 24' Acres 243 7

8 HFF LOCATION OVERVIEW 8

9 LOCATION OVERVIEW 9

10 HFF LOCATION OVERVIEW HFF HOUSTON 9 Greenway Plaza, Suite 700 Houston, Texas Tel (713) Investment Sales Financing Inquiries Leasing Inquiries RUSTY TAMLYN Senior Managing Director rtamlyn@hfflp.com (713) TRENT AGNEW Director tagnew@hfflp.com (713) JOHN INDELLI Associate jindelli@hfflp.com (713) DANE PETERSEN Real Estate Analyst dpetersen@hfflp.com (713) COLBY MUECK Managing Director cmueck@hfflp.com (713) JEREMY LUMBRERAS Vice President jlumbreras@streamrealty.com (713) Holliday Fenoglio Fowler, L.P. acting by and through Holliday GP Corp a Texas licensed real estate broker ( HFF ). This Offering Memorandum has been prepared by HFF for use by a limited number of parties and has been obtained from sources believed reliable. While we do not doubt its accuracy, we have not verified it, and make no guarantee, warranty or representation about it. It is your responsibility to confirm, independently, its accuracy and completeness. All projections have been developed by HFF, Owner and designated sources, are based upon assumptions relating to the general economy, competition, and other factors beyond the control of Owner, and therefore are subject to variation. No representation is made by HFF or Owner as to the accuracy or completeness of the information contained herein, and nothing contained herein is or shall be relied on as a promise or representation as to the future performance of the property. Although the information contained herein is believed to be correct, Owner and its employees disclaim any responsibility for inaccuracies and expect prospective purchasers to exercise independent due diligence in verifying all such information. Further, HFF, Owner and its employees disclaim any and all liability for representations and warranties, expressed and implied, contained in, or for omissions from, the Offering Memorandum or any other written or oral communication transmitted or made available to the recipient. The Offering Memorandum does not constitute a representation that there has been no change in the business or affairs of the property or Owner since the date of preparation of the Offering Memorandum. Analysis and verification of the information contained in the Offering Memorandum is solely the responsibility of the prospective purchaser. Additional information and an opportunity to inspect the property will be made available upon written request to interested and qualified prospective investors. Owner and HFF each expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers regarding the property and/or terminate discussions with any entity at any time with or without notice. Owner shall have no legal commitment or obligations to any entity reviewing this Offering Memorandum or making an offer to purchase the property unless and until such offer is approved by Owner, a written agreement for the purchase of the property has been fully executed, delivered and approved by Owner and its legal counsel, and any obligations set by Owner thereunder have been satisfied or waived. This Offering Memorandum and the contents, except such information, which is a matter of public record or is provided in sources available to the public, are of a confidential nature. By accepting this Offering Memorandum, you agree that you will hold and treat it in the strictest confidence, that you will not photocopy or duplicate it, that you will not disclose this Offering Memorandum or any of the contents to any other entity (except to outside advisors retained by you, if necessary, for your determination of whether or not to make a proposal and from whom you have obtained an agreement of confidentiality) without the prior written authorization of Owner or HFF and that you will use the information in this Offering Memorandum for the sole purpose of evaluating your interest in the property and you will not use the Offering Memorandum or any of the contents in any fashion or manner detrimental to the interest of Owner or HFF If you have no interest in the property, please return the Offering Memorandum forthwith. 10