MARKET PLACE SHOPPING CENTER OFFERING SUMMARY TEMPLE, TEXAS

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1 MARKET PLACE SHOPPING CENTER Holliday Fenoglio Fowler, L.P. acting by and through Holliday GP Corp. a Texas licensed real estate broker ( HFF ), TEXAS OFFERING SUMMARY

2 EXECUTIVE SUMMARY HFF has been retained as the exclusive advisor to offer to qualified investors the opportunity to purchase Market Place Shopping Center (the Property ), a 291,844 square foot grocery-anchored retail center located in the heart of Temple, Texas one of the fastest growing cities in the state. The Property is 86% leased to an impressive array of national and regional tenants including HEB Grocery Store, Kohl s, Bealls, Dollar Tree, Pier 1 Imports, Rent-A-Center and Starbucks, among others. The Offering presents investors with a unique opportunity to acquire a leading grocery-anchored retail asset in Central Texas featuring stability through strong anchor tenancy and upside potential through lease-up of vacant space and near term rental rate mark-to-market opportunities. INVESTMENT HIGHLIGHTS Prime Infill Location in Growing Market Prominently located at the intersection of Loop 363 (SW HK Dodgen Loop) and South 31st Street (FM 1741) One of Temple s busiest intersections with a combined daily traffic count of over 80,000 vehicles Established trade area with a population of over 112,000 people within a 10-mile radius, expected to grow 5.3% over the next five years Located across the street from Market Place is Baylor Scott & White Memorial Hospital, the largest employer in Temple and one of the top 10 best hospitals in Texas HEB Grocery Stores HEB has been located at the Property since 1980 The Market Place HEB is the most successful grocer in Temple The scarcity of HEB offerings coupled with their exceptional performance and market share provides a unique opportunity for investors NOTABLE TENANTS TENANT SQUARE FEET EXPIRATION HEB 72,574 08/17 Kohl s 62,000 01/32 Bealls 30,000 10/20 Dollar Tree Stores 10,000 04/16 Pier 1 Imports 8,067 02/16 Rent-A-Center 6,875 09/18 Starbucks 1,250 06/24 PROPERTY OVERVIEW Location SWC of Loop 363 at South 31st Street Temple, Texas Acres Acres Year of Completion 1980 Building Size 291,844 square feet Occupancy 86.7% Avg. Rent In-Place (excluding HEB, Kohl s & Bealls) $17.88 per square foot Inline Avg. Rent In-Place (excludes tenants over 5K SF) $20.50 per square foot 24-Hour Traffic Counts TXDOT 13 +/- 52,000 vehicles per day along Loop 363 +/- 30,000 vehicles per day along South 31st Street 5 Mile Demographics 2015 Est. Population: 67,038 No. of Households: 27,043 Avg. Household Income: $65,178 2 MARKET PLACE SHOPPING CENTER

3 INCOME STABILITY COUPLED WITH UPSIDE POTENTIAL Approximately 49% of the Property s GLA (57% of leased space) is occupied by tenants who have leased space at Market Place for more than 15 years National or regional tenants occupy approximately 82% of the Property s GLA (95% of leased space) and account for more than 90% of the Property s base income Contractual rental rate increases and the lease up of existing 40,522 square feet of vacancy generates more than $500,000 in additional NOI over 3 years Attractive average inline rents of $20.50 per square foot are supported by average reported sales of $294 per square foot providing an opportunity to increase rental rates substantially upon rollover Significantly under-leased Bealls junior anchor position provides an opportunity to dramatically increase revenue when their last option expires in 2020 Potential for small pad site development on South 31st Street AGGRESSIVE CAPITAL MARKETS The Property is offered on a free and clear basis allowing an investor the opportunity to take advantage of today s aggressive capital markets environment to bolster yields The current capital market environment for core, credit-oriented investments provides yield enhancement from historic low bond yields and compressing credit spreads 3 MARKET PLACE SHOPPING CENTER

4 Waco - 35 Miles - 38 Minutes Dallas Miles - 2 Hours Loop 363 South 31st St (FM 1741) Bird Creek Crossing Austin - 68 Miles - 66 Minutes Central Texas VA Health Care System Temple Junior College Center Point Plaza South Loop Temple Town Center Loop 363 (SW HK Dodgen Loop) Temple Mall Thornton Elementary School South 31st St ECONOMIC OVERVIEW Located in the heart of Texas, the Killeen-Temple metropolitan area benefits from a strategic location along Interstate 35 among major Texas cities including Dallas, Austin, San Antonio and Houston. Direct access to I-35, the main north-south interstate through Texas that extends from Mexico to Canada, positions Temple within 180 miles of 80% of Texas population. The MSA consists of more than 433,000 residents with an employment base of over 207,000. Between 2015 and 2020, the Killeen-Temple MSA is projected to add approximately 28,000 residents, representing an increase of 6.42% and outpacing national projections. 4 MARKET PLACE SHOPPING CENTER

5 MALL South 31st St Market Loop HIGH SCHOOL DOWNTOWN SW HK DODGEN LOOP 31ST STREET MALL JUNIOR COLLEGE Loop 363 Frontage Rd ADDITIONAL INFORMATION JIM BATJER Senior Managing Director BARRY BROWN Senior Managing Director KELSEY ROOP Associate Director DREW FULLER Analyst MICHAEL RESTIVO Analyst Debt Inquiries: JEREMY WOMACK Managing Director HFF and HFFS (HFF Securities L.P.) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 23 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry. HFF together with its affiliate HFFS offer clients a fully integrated national capital markets platform including debt placement, investment sales, equity placement, advisory services, loan sales and commercial loan servicing. For more information please visit hfflp.com or follow HFF on HFF has been engaged by the owner of the properties to market them for sale. Information concerning the property [properties] described herein has been obtained from sources other than HFF and we make no representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all references to age, square footage, income, expenses and any other property specific information are approximate. Any opinions, assumptions, or estimates contained herein are projections only and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a buyer. Buyers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change. 5 MARKET PLACE SHOPPING CENTER