15150 MEMORIAL DRIVE 1

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1 15150 M E M O R I A L D R I V E H O U S T O N, T E X A S EXECUTIVE SUMMARY EXECUTIVE SUMMARY Hollida Fenoglio Fowler, L.P. acting b and through Hollida GP Corp a Texas licensed real estate broker ( HFF ) MEMORIAL DRIVE 1

2 HFF, as exclusive advisor for the Owner, is pleased to offer the opportunit to acquire a 100% fee simple interest in Memorial Drive ( The Propert ), a 155,118 square foot vacant Class A office building and structured parking garage located just west of the intersection of Memorial Drive and Eldridge Parkwa in one of the most dnamic areas in Houston. Situated on a wooded 5.7 acre site, Memorial Drive is the ideal location for corporations seeking a prestigious address within a headquarters qualit building in Houston s Energ Corridor Memorial Drive provides an exceptionall rare opportunit to acquire an institutional qualit asset with 155,118 square feet of contiguous space in one of the countr s strongest MSA s at a price well below replacement. INVESTMENT SALES TEAM H. DAN MILLER, CCIM, SIOR Senior Managing Director Phone (713) dmiller@hfflp.com TRENT AGNEW Director Phone (713) tagnew@hfflp.com WESLEY HIGHTOWER Real Estate Analst Phone (713) whightower@hfflp.com FOR DEBT INQUIRIES COLBY MUECK Director Phone (713) cmueck@hfflp.com 2 HFF

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4 INVESTMENT HIGHLIGHTS INVESTMENT SUMMARY ADDRESS Memorial Drive, Houston, Texas YEAR BUILT 1992 OFFICE SF 155,118 SITE SIZE 5.7 acres (248,161 SF) OCCUPANCY 0% PARKING RATIO 3.1 per 1,000 SF (abilit to expand to 4.4 per 1,000) 4 4 HFF

5 RARE VALUE-ADD/OPPORTUNISTIC INVESTMENT IN HOUSTON S ENERGY CORRIDOR Memorial Drive presents investors a ver rare opportunit to acquire a Class A office building in one of the nation s most dnamic and resilient submarkets at a price well below replacement cost. Similar profile transactions over the last few ears have all been major successes for investors, including 1200 Enclave, Energ Crossing, Reserve at Park Ten and Westwa III. Prices in excess of $300 PSF have been demonstrated multiple times in this submarket and next generation sales of $400-$500 PSF are expected in the next 6 to 12 months based on recent rental rates that have been achieved. PREMIER LOCATION IN THE HEART OF THE ENERGY CORRIDOR Memorial Drive offers a prestigious address along Memorial Drive, one of Houston s premier east/ west thoroughfares, with some of the best ingress and egress available in the submarket and direct access to the IH-10 feeder, establishing a tremendous advantage over competitive office buildings. Man highl acclaimed and successful office developments are situated within a few miles of the Propert including Enclave Business Park, WestLake Park and Energ Center, which each total over 1.5 million square feet and are the corporate/regional headquarters for a number of Fortune 500 companies such as ConocoPhillips and Ssco Corporation, and other multinational companies including BP America, Schlumberger, CITGO, Gulf States Toota, AMEC Foster Wheeler, Shell Oil and Worle Parsons. The area within five miles of the Propert features a population of more than 244,000 people and is projected to grow to well over 260,000 b 2020, an 8.4% growth rate. This population resides in some of Houston s most prominent neighborhoods including Roal Oaks and the Memorial Villages. Future tenants of Memorial Drive also benefit from an abundance of amenities in close proximit, including over 1,300 hotel rooms in hotels such as the Omni Houston Hotel at Westside, Hotel Sorella Cit Centre and the Westin Memorial Cit, as well as over 3 million square feet in some of the cit s most popular retail and entertainment destinations such as Cit Centre, Memorial Cit Mall, and Town & Countr Village. DISCOUNT TO REPLACEMENT COST Based on recent land sales in the immediate area of $30-$45 per land square foot and HFF s data on construction costs, it is estimated that the cost to replace Memorial Drive is $300+ per square foot Due to the tremendous increases in land prices within the immediate area, it would not be feasible to construct a 155,118 square foot office building on 5.7 acres toda making this a ver unique opportunit Memorial Drive SUPERIOR CLASS A ASSET Designed b Kirkse Architecture and built b EE Reed Construction in 1992, Memorial has been meticulousl maintained and can compete with newer vintage buildings in the Energ Corridor submarket. The Propert was originall developed as the corporate headquarters for Landmark Graphics, a division of Halliburton, and has also previousl served as the corporate headquarters PGS Americas. The building possesses a number of characteristics that make it an ideal corporate campus, including signage opportunities, secure access to the site/garage/building, men s and women s locker rooms, full-service cafeteria, ample structured parking with the potential to expand, loading dock, and a highl desirable park-like setting. A cube-shaped glass building entr between the garage and building could serve as a conference center or tenant amenit area. Floor plates offer an efficient 24,460 square feet laout and can accommodate a single tenant or multitenant space plan. Recent capital improvements include roof replacement in 2006 and other energ management sstem upgrades which have enabled the building to achieve an Energ Star label seven times since 2008 with an overall rating of 91. EXECUTIVE SUMMARY MEMORIAL DRIVE 1

6 RESILIENT MARKET FUNDAMENTALS Class A properties in the Energ Corridor submarket absorbed almost 5.2 million square feet in the last 5 ears, and current Class A occupanc stands at 85.5% as of Q2 2015, having exceeded 85% for the last 19 quarters. The lowest level of occupanc in the last 10 ears came in Q (84.6%), but after onl two ears the average occupanc rate bounced back to 92.6%, having absorbed 1.2 million square feet in that time. Rental rates were also coming off of an all-time low in 2009 ($26.89 psf) but experienced rapid growth over that same two-ear stretch, rising almost 5% to over $30 psf in 4Q The current average Class A rental rate in the submarket is $35.68 per square foot gross, which represents a 23% increase within the last three ears and a health 32.7% increase since the trough in Q % of the total Class A square footage in the Energ Corridor is owner-occupied, and 13 tenants lease more than 200,000 SF of Class A space in the Energ Corridor, providing a stable base occupanc in the submarket and exhibiting the strong demand for space. Although the Energ Corridor has 1.2 million square feet of Class A space on the sublease market, 68% of the space will expire in the next five ears and is therefore not a threat to investors of Memorial who are looking to execute leases with longer than five ears of term % HISTORICAL OCCUPANCY & RENTAL RATES Energ Corridor Class A - 10-Year Histor $37.00 HOUSTON ECONOMIC ENGINE Driven b robust energ, manufacturing, trade and medical sectors, the unemploment rate of 4.7% as of Jul 2015 which is well below the national unemploment rate of 5.3%. Over the last five ears, the metropolitan area created 445,400 net new jobs, including 104,700 jobs in 2014 for a 3.6% increase. With 6.5 million residents, the Houston MSA is the 5th most populous metropolitan area, having added 1.8 million residents Since 2000 which equates to an average growth rate of 10,000 residents per month. With a metropolitan GDP of $523 billion, Houston is the 4th largest U.S. metro econom; if Houston were a countr it would rank 23rd alongside Sweden Houston has benefitted from more than 1,500 significant corporate relocations or expansions since 2009 (Significant defined as creating more than 50 jobs, leasing 20,000 square feet and/or investing more than $1.0 million). 26 Fortune 500 and 55 Fortune 1000 companies are headquartered in Houston, ranking it third in the nation behind New York and Chicago. HOUSTON ACCOLADES According to NCREIF data, Houston has consistentl ranked in the top 10 U.S. office markets for total return generation across one, three, five, seven, and 10 ear historical periods. Houston has averaged a 10.8% total return annuall over the last 10 ears, ranking it third among all U.S. office markets. 95.0% 90.0% $35.00 $33.00 $31.00 The Urban Land Institute ( ULI ) named Houston as its top U.S. real estate market to watch in its Emerging Trends in Real Estate 2015 publication due to its strong population and emploment growth. Occupanc % 85.0% $29.00 $27.00 $25.00 Rental Rate $ 80.0% $ % $21.00 $ % $17.00 Occupanc (%) Rental Rates ($) 2,500,000 ENERGY CORRIDOR CLASS A LEASING MOMENTUM 140 2,000, SF Leased 1,500,000 1,000, # Direct Deals 500, TTM 2Q06 TTM 2Q07 TTM 2Q08 TTM 2Q09 TTM 2Q10 TTM 2Q11 TTM 2Q12 TTM 2Q13 TTM 2Q14 TTM 2Q15 Direct SF Leased Total SF Leased # Direct Deals 0 2 HFF

7 EXECUTIVE SUMMARY MEMORIAL DRIVE 3

8 W AY PARK E G R I D E L D N O R T H AERIAL PHOTOGRAPH - EAST FACING W E S T S A M H O U S T O N PA R K W AY MEMORIAL CITY CITYCENTRE MEMORIAL VILLAGES ADDICKS RESERVOIR SHELL TECHNIP I H K AT Y F R E E W AY CONOCOPHILLIPS FOSTER WHEELER WORLEY PARSONS CONOCOPHILLIPS CONOCOPHILLIPS SM ENERGY M E M O R I A L V I E W D R I V E R D L A I R O M E M E V I 4 HFF

9 LOCATION MAPS F rw 6 Cullen Park BELTWAY Barker Cpress Rd TO L Park Ten Dr th es W Dair Ashford Rd San Jacinto Ba Pasadena Frw Texas par Golf Academ Loop Wilcrest Dr lwa Westpark Tol Beechnut St Dair Ashford Rd Sam Houston Tollwa Barbour s Cut Terminal Bellaire Blvd Howell-Sugarland Rd Eldridge Pkw T O L L R O AD William P. Hobb Airport Roal Oaks Countr Club rw Armand Baou Park NASA Wilcrest Dr m ei Westchase West Houston Medical Center Old Westheimer Rd Westpark Dr Frw S Kirkwood Rd d rr n East Westheimer RdBatow Richmond Ave East Loop m e S Barker Cpress Rd Forest Park Westheimer Cemetar 6 F lf Gu Fort Be n d Pk w 69 Eldridge Pkw H Old Addicks - Howell Rd West Loop Sou er Pkw South Frw FORT BEND Texas Medical Centerth Harlem Rd ut So rw tf es hw Rd We ood kw stpark Tollwa Briar Forest Dr Loop ei Westh The Galleria Lakeside Countr Club Terr Hersh Park Kir Road w Fr Westheimer Rd w West Oaks Mall Westchase George Bush Park d Pkw Enclave Pkw Toll rth North ont aum Be Downtown Cou Memorial Dr Gran Sheldon Reservoir Energ Corridor Kat Frw Memorial Drive Nottingham Park l ia or Briar Forest Dr George Bush Park Westwa ed alo Lake Houston Hard No os em M Buff Barker Reservior 69 Frw op Baou Sam Houston Tollwa st Pr Memorial Drive George Bush Intercontinental Airport Greenspoint we L Energ Corridor Kingsland Blvd rth 8 Addicks Reservior HARRIS No Agne Moffit P Eldridge Pkw Saums Rd tex MONTGOMERY Lake Houston State Park E as ExxonMobil Corporate Headquarters Greenhouse Rd The Woodlands LIBERTY 69 EXECUTIVE SUMMARY ction (ETA 2016) Under Cons t ru and Pkw Gr Galveston Ba Baport Terminal Clear Lake Smithers Lake Proposed Grand Pkw BRAZORIA GALVESTON M E M O R I A L D R I V E 5

10 INVESTMENT SALES H. DAN MILLER, CCIM, SIOR Senior Managing Director Tel (713) TRENT AGNEW Director Tel (713) WESLEY HIGHTOWER Real Estate Analst Tel (713) FOR DEBT INQUIRIES COLBY MUECK Director Tel (713) Hollida Fenoglio Fowler, L.P. acting b and through Hollida GP Corp a Texas licensed real estate broker ( HFF ) HFF and HFFS (HFF Securities L.P.) are owned b HFF, Inc. (NYSE: HF). HFF operates out of 22 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industr. HFF together with its affiliate HFFS offer clients a full integrated national capital markets platform including debt placement, investment sales, equit placement, advisor services, loan sales and commercial loan servicing. For more information please visit hfflp.com or follow HFF on 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 we make no representations or warranties, express or implied, as to the accurac or completeness of such information. An and all references 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 buer. Buers should conduct their own independent investigation and rel on those results. The information contained herein is subject to change. 6 HFF 9 Greenwa Plaza, Suite 700 Houston, Texas Tel (713) Fax (713)