8773 KATY FREEWAY HOUSTON, TEXAS 77024

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1 8773 KATY FREEWAY HOUSTON, TEXAS EXECUTIVE SUMMARY Hollida Fenoglio Fowler, L.P. acting b and through Hollida GP Corp a Texas licensed real estate broker ("HFF").

2 EXECUTIVE SUMMARY Investment Summar Location 8773 Kat Freewa, Houston, TX Tenant Site Area Building Area Bank of America 0.87 Acres *This propert was not affected b Hurricane Harve 7,568 SF BBB+ S&P Credit Rating #9 Bank of America in Houston in deposits Absolute NNN Lease 9+ YEAR Term Lease Tpe Rent Commencement Date Februar 28, 2017 Lease Expiration Date March 31, 2027 NOI Options Visibilit Tenure Absolute NNN (B of A responsible for common area expenses, taxes, roof, and structure) Two, 5-ear options to extend I-10: 250,000+ VPD 23 Years CLICK HERE TO DOWNLOAD THE CONFIDENTIALITY AGREEMENT Bank of America has recentl renewed a lease that dates back to April 1994 at 8773 Kat Freewa in Houston, Texas. This absolute NNN lease, which commenced on September 1, 2016, has a 126-month term and is situated on 0.87 acres. Located in the center of Houston s wealthiest collection of neighborhoods, the Memorial Villages, the Bank of America Hedwig Village branch collects more than $242 million in deposits annuall (9th most in the cit for B of A). This propert was not affected b Hurricane Harve. 2

3 LEASE ABSTRACT & SITE PLAN Lease Abstract Site Plan Address: 8773 Kat Freewa, Houston, Texas Tenant: Bank of America 10 Site Area: 0.87 Acres Propert Size: 37,913 SF H E x i t R a m p INTERSTATE 10 FRONTAGE ROAD I H E n t r a n c e R a m p Rent Commencement Date: September 1, 2016 Term: 126 Months Base Rent Renewal Options: CLICK HERE TO DOWNLOAD THE CONFIDENTIALITY AGREEMENT Two, 5-ear options to extend with at least six (6) months written notice to landlord. BROGDEN ROAD BANK OF AMERICA RETAIL RETAIL Triple Net Lease: Tenant expressl acknowledges that this is a triple net Lease and that Landlord shall not be responsible during the Lease Term for an cost, charges, expenses or outlas of an nature whatsoever arising from or related to Leased Premises, the contents use or occupanc thereof, or the business carried therein. No portion of taxes, insurance premiums, utilit charges, maintenance costs or other operating costs are included in the Base Rent. Tenant is obligated to pa all costs and expenses allocable to the Leased Premises, such that the Base Rent is net to Landlord. GAYLORD DRIVE Purpose: The operation of a branch banking facilit for the deliver of a full range of banking services to commercial and retail customers, together with related facilities for all such services, including up to five (5) drive-through lanes, inclusive of at least one (1) drive-thru lane for the use of an installed automated teller machine, and for other financial services provided b Tenant. Casualt: An fire or casualt to the Leased Premises shall not in an wa alter, affect or modif Tenant s obligations in the lease, including specificall obligation to pa Base Rent. If the Improvements are damaged or destroed, Tenant shall be bound and obligated to repair and reconstruct the Improvements to their condition existing immediatel prior to such damage or destruction. If Landlord and Tenant agree to terminate the Lease after an such fire or casualt, all insurance proceeds shall go to the Landlord. 3

4 FORMULA FOR VALUE APPRECIATION & SUSTAINABLE RENT GROWTH High Barriers To Entr + Retail Starved Trade Area = Value Appreciation and Sustainable / Replaceable Rent Growth The Memorial Villages are subject to Strict Zoning; juxtaposed to sites within Cit of Houston not subject to zoning 98.6% Occupanc Rate within the Market Densel Populated Trade Area with Significant Disposable Income subject to Limited Commercial Reserves 35% Growth in Rental Rates (Last 5 Years) SPRING VALLEY VILLAGE POPULATION: 3,938 MEDIAN HH INCOME: $171,026 Memorial Hermann Memorial Cit Spring Branch Middle School Memorial High School HEDWIG VILLAGE POPULATION: 2,635 MEDIAN HH INCOME: $84,179 HUNTERS CREEK VILLAGE POPULATION: 4,545 MEDIAN HH INCOME: $242,250 BUNKER HILL VILLAGE POPULATION: 3,777 MEDIAN HH INCOME: $243,889 PINEY POINT VILLAGE POPULATION: 3,228 MEDIAN HH INCOME: $250,000 Retail Office Residential 4

5 TENANT PROFILE Lake Houston State Park Eas te x Frw MONTGOMERY Top 10 Bank of America s in Houston (b deposits) ExxonMobil Corporate Headquarters LIBERTY 69 Grand Pkw The Woodlands 5 Annual March Year Tenure S&P Credit Rating Deposits Lease Expiration at the Propert Pr op George Bush Intercontinental Airport Greenspoint os ed Grand Sam Houston Pkw Pkw Lake Houston 69 st rth we No rth Frw w Fr Bank of America Financial Facts Sheldon Reservoir ll Road No ont Hw aum Be North Ticker: BAC (NYSE) 10 Kat Frw George Bush Park 2016 revenue: $83.9 billion Westchase Downtown 4 3 The Galleria Westheimer Rd West Loop a Westpark Tollw 2016 NOI: $17.1 billion (9.9% increase from 2015) 7 Texas Medical 6 Center South San Jacinto Ba Pasadena Frw Loop Barbour s Cut Terminal rw tf es hw t ou S FORT BEND 69 w nd Core Services: consumer and small business banking, corporate banking, credit Be South Frw w Fr Fort Armand Baou Park lf 4,600+ branch locations & 16,000+ ATM s Baport Terminal Sam Houston Tollwa Gu cards, mortgage lending, & asset management Galves Ba William P. Hobb Airport Pk Bank of America Compan Overview 2 Clear Lake #3 largest consumer bank in the US Consumer Banking segment, which would include branch banks, accounts for 37% of Smithers Lake compan revenue, larger than an other segment Retail Banking serves 47 million customers and small businesses in the US East F 9 Energ 8 Corridor Credit: BBB+ (Investment Grade) Batown Loop East Loop $242.8 M HARRIS 1 To Hard BBB+ Proposed Grand Pkw BRAZORIA GALVESTON Online Banking: 34 million active users and 22 million mobile users Bank of America Hedwig Village Location $242,788,000 in deposits #9 ranked Bank of America b deposits in Houston (86 total) 23-ear tenure: Original Lease signed in August 1994 Renewed lease in August 2016 for a 126-month term with two additional 5-ear options Branch location serving Houston s wealthiest collection of neighborhoods - the Memorial Vilalges. 5

6 TRADE AREA DRIVERS Nearb Residential Population Centrall located to some of Houston s wealthiest neighborhoods the Memorial Villages Average household income within a 1-mile radius: $250,121 Average home value within a 1-mile radius: $967,408 Top-10 wealthiest zip codes in Texas DEMOGRAPHICS 1-MILE 3-MILE 5-MILE Population 9, , , Population 8, , , Projection 9, , ,683 Growth Since % 7.5% 9.7% Expected Growth (5 Years) 5.4% 5.9% 6.8% Average HH Income $250,121 $125,162 $100,470 Median Home Value $967,408 $449,541 $304,837 Strong Emploment Fundamentals Just 10 minutes from two of the cit s largest emploment hubs, the CBD and Energ Corridor via I-10 90,000+ emploees located within a 3-mile radius One block west of the recentl announcet Stream/AMD/DRI 101,000 SF Medical Office Development that is slated for completion in Q Strong Retail Corridor Residents within a 3-mile radius have $1.6 billion in annual spending power Located in Houston s Near West retail submarket which has a 96.4% occupanc rate, higher than the overall Houston rate of 94.6% 2 miles east of Houston s second largest shopping mall, the Memorial Cit Mall 6

7 EAST FACING AERIAL Memorial Villages The Memorial Villages are a collection of upscale residential communities that include the cities of: Spring Valle, Pine Point Village, Bunker Hill Village, Hedwig Village and Hunter s Creek Village. Each Village is its own independent cit that operates autonomousl of Houston. CBD GREENWAY PLAZA THE GALLERIA IH 610 WOODWAY DRIVE MEMORIAL DRIVE PINEY POINT VILLAGE ($1.5 MILLION - $8 MILLION) HUNTERS CREEK VILLAGE ($900K - $10 MILLION) SPRING VALLEY VILLAGE ($500K - $1.9 MILLION) VOSS ROAD HEDWIG VILLAGE ($900K - $4 MILLION) IH ,000 VPD BROGDEN ROAD 7

8 MEMORIAL CITY MALL HEDWIG VILLAGE BUNKER HILL VILLAGE MEMORIAL CITY 1.75 M SF OF OFFICE ECHO LANE SHOPPING CENTER SPRING BRANCH BUNKER HILL VILLAGE ($1 MILLION - $6.5 MILLION) MEMORIAL HIGH SCHOOL SPRING BRANCH MIDDLE SCHOOL IH 10 PINEY POINT VILLAGE ($1.5 MILLION - $8 MILLION) GAYLORD DR IH 10 Exit SPRING VALLEY VILLAGE ($500K - $1.9 MILLION) BROGDEN ROAD HEDWIG VILLAGE ($900K - $4 MILLION) IH 10 Entrance WEST FACING AERIAL 8

9 ADDITIONAL INFORMATION RYAN WEST Senior Managing Director CHARLIE STRAUSS Analst JOHNNY KIGHT Analst FOR FINANCING INQUIRIES MICHAEL JOHNSON Director HFF has been engaged b the owner of the propert [properties] to market it [them] for sale. Information concerning the propert [properties] described herein has been obtained from sources other than HFF, and neither Owner nor HFF, nor their respective equit holders, officers, emploees and agents makes an representations or warranties, express or implied, as to the accurac or completeness of such information. An and all reference to age, square footage, income, expenses and an other propert specific information are approximate. An opinions, assumptions, or estimates contained herein are projections onl and used for illustrative purposes and ma be based on assumptions or due diligence criteria different from that used b a purchaser, and HFF, its partners, officers, emploees and agents disclaim an liabilit that ma be based upon or related to the information contained herein. Prospective purchasers should conduct their own independent investigation and rel on those results. The information contained herein is subject to change. 9.17