3335 TWIN CITY HIGHWAY, PORT ARTHUR, TX INVESTMENT OPPORTUNITY

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1 JE FF ER 24 SO N 1, CI T 7S YC O FT ota MM l 82 ON S 3335 TWIN CITY HIGHWAY, PORT ARTHUR, TX INVESTMENT OPPORTUNITY Riley Sharman riley.sharman@colliers.com 1233 W Loop South Suite 900 Houston Texas 77027

2 AREA RETAILERS INCLUDE: PRICING PURCHASE PRICE Call Broker for Asking Price PRICE/SF Under $21.00/PSF YEAR BUILT 1978 PROPERTY INFORMATION TENANTS ADDRESS SQUARE FOOTAGE JE Citi Trends, Dollar General, TSO 3335 Twin City Highway Port Arthur, Texas ,827 SF LEASE STRUCTURE Gross FF ER 24 SO N 1, NET OPERATING INCOME CI T 7S YC O FT ota MM l 82 ON S $152, AREA OVERVIEW Port Arthur is a city in Jefferson County within the Beaumont Port Arthur Metropolitan Statistical Area of the U.S. state of Texas. It is ninety-one miles east of Houston. The population was 53,818 at the 2010 census. Early attempts at settlements in the area had all failed. However, in 1895 Arthur Stilwell founded Port Arthur, and the town quickly grew. Port Arthur was incorporated as a city in 1898 and soon developed into a seaport. It eventually became the center of a large oil refinery network.[3] The Rainbow Bridge across the Neches River connects Port Arthur to Bridge City. Geography and Climate Port Arthur is located on a coastal plain where elevations range from sea level to 9 feet. Transportation is easy in Port Arthur, and most locations are a 10 or 15 minute drive from any location. It is 90 miles east of Houston in Southeast Texas. The Southeast Texas region is well known for its mild winter temperatures and warm summers. The normal yearly rainfall is 61 inches. Our neighboring cities are Beaumont and Orange; together these cities make up what is known as the Golden Triangle which is adjacent to the Louisiana border.

3 EXECUTIVE SUMMARY Jefferson City Commons is a value-add, 241,827 square foot, multi- tenant retail center with a premier location in a unique tertiary submarket. The local economic base is dominated by the petrochemical industry which benefits directly from lower oil and gas prices and is undergoing dramatic expansion. Total Petrochemicals has selected Port Arthur as the site for an estimated $1.6 billion petrochemical plant, known as an ethane cracker, which will produce a base ingredient in plastics from natural gas and has a capacity of 1,000 kilotons to supply ethane to the Gulf Coast region. This expansion will have a positive impact on an already healthy employment market in Port Arthur. Port Arthur is a prosperous community (median family income within 5 miles of the center is $59,806 per annum) near Beaumont Texas. This area is known as the Golden Triangle between the cities of Beaumont, Port Arthur, and Orange. The Golden refers to the wealth that came from the Spindletop oil strike in Beaumont in The Subject Property trade area encompasses 31,397 employees and 2,935 businesses in a 5-mile radius. This offering is comprised of two separately-parceled strip centers anchored by Citi Trends, Dollar General, TSO. The configuration is predominantly in-line with a total of eleven occupied spaces and a considerable number of vacant bays available for lease-up, thus enhancing future value for an investor. The subject property is located in the retail heart of the community, ½ mile from Port Arthur Memorial High School. Currently, average rents in the center, are $8.40/SF Gross, well below the rates for comparable space in the area. A listing of comparable rents is provided in this Offering Memorandum. The center is currently 30% occupied, offering a significant value-added opportunity for the buyer. In addition to the in-line vacancy, there is an available bank pad with frontage along Twin City Highway. At our offering price $20.26/PSF, the in-place income generates a sustainable 3% return before a refresh/remodel and leasing strategy is implemented. Utilizing conservative lease up assumptions, our Argus model projects a $1,492,407 Net Cash Flow (before debt service and taxes) in year 5 of the hold period.

4 AREA OVERVIEW POPULATION 1 - Mile 3 - Miles 5 - Miles Estimated Population (2016) 18,381 93, ,918 Census Population (2010) 17,078 79, ,948 Projected Population (2021) 20, , , % 2.2% 2.2% $74,147 $84,966 $93,027 Projected Annual Growth Avg Household Income (2016) This document has been prepared by Colliers International for advertising and general information only. Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from. This publication is the copyrighted property of Colliers International and/or its licensor(s) All rights reserved.

5 Colliers International Houston, Inc (713) Gary Mabray, SIOR (713) Patrick Duffy, MCR (713) Riley Sharman (713)