Four Class A Office Assets and Approximately 36 Acres of Residential and Commercial Land Within Austin s Premier Mixed-Use Development

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1 Four Class A Office Assets and Approximately 36 Acres of and Commercial Land Within Austin s Premier Mixed-Use Development Holliday Fenoglio Fowler, L.P. acting by and through Holliday GP Corp. a Texas licensed real estate broker ( HFF ) THE DOMAIN INVESTMENT SUMMARY HFF 1

2 investment summary HFF has been exclusively retained by the Owner to offer to qualified investors an opportunity to acquire a unique collection of assets and ownership interests in The Domain- Austin s premier mixed-use development. The assets offered herein represent the remaining holdings of RREEF Domain, LP and include the following: fee simple interests in the majority of the undeveloped commercial and residential sites, fee simple interests in two 100% leased office buildings, 50% interests in the two newest office properties, and a condominium interest in the retail component of the Aloft Hotel. THE ASSETS NOTED BELOW ARE OFFERED ON A PORTFOLIO, SUB-PORTFOLIO OR SINGLE-ASSET BASIS. AVAILABLE EXISTING PROPERTY TYPE ACRES SF PER FAR SF IMPROVED ASSETS Domain 2 Office 1.79 Acres NA 114,665 Domain 7 Office 4.16 Acres NA 221,973 Domain 3 Office 4.62 Acres 1,609, ,006 Domain 4 Office 4.16 Acres 1,449, ,992 Domain Aloft 1.00 Acres NA 8,617 SUB-TOTAL - IMPROVED ASSETS ACRES 3,059, ,253 OFFICE/COMMERCIAL LAND Domain Block A 1.50 Acres 522,720 0 Domain Office Block B Office 6.23 Acres 2,171,030 0 Domain Office Block C Office 6.30 Acres 2,195,424 0 Domain Office Block D Office 2.80 Acres 974,002 0 Domain Office Block E Office 4.62 Acres 1,609,978 0 SUB-TOTAL - OFFICE/COMMERCIAL LAND ACRES 7,473,154 0 RESIDENTIAL LAND Domain Block G 2.80 Acres 974,002 0 Domain Block L 2.12 Acres 738,778 0 Domain Block M 3.26 Acres 1,136,045 0 Domain Block N 3.89 Acres 1,355,587 0 Domain Block Q 2.14 Acres 745,747 0 SUB-TOTAL RESIDENTIAL LAND ACRES 4,950,158 0 GRAND TOTAL THE DOMAIN ACRES 15,482, ,253 *Acreages are estimates as the site is currently platted as one site and will be separately re-platted as sales are complete NOTES: Domain 2: 50% non-controlling interest in Class AA office building completed in 2014 and 100% leased to HomeAway. Domain 7: 50% non-controlling interest in Class AA office building to be completed in first quarter The Property is 67% pre-leased to tenants including Amazon, Ottobock and Brookfield. Domain 3: Fee-simple interest in a 100% leased office asset that was re-developed in Major tenants include Blackbaud, KingsIsle and XO Communications. Domain 4: Fee-simple interest in a 100% leased office asset that was re-developed in Major tenants include Electronic Arts and Texas Culinary Academy. Domain Aloft : Condominium interest consisting of an 8,700 sf retail space on the ground floor of the Aloft Hotel. 100% leased to The Park, a restaurant and bar retailer. Domain Block A: Pad site for potential retail development. Domain Blocks C, D & G: Could be developed as office or residential and included in both sub-portfolios. Domain Block Q: Slated for an age-restricted, independent living development. This site is currently being marketed for sale by HFF independent of the broader offering presented herein and is also included herein. 2 THE DOMAIN INVESTMENT SUMMARY HFF

3 Austin continued. The entire Domain development consists of the interests offered herein as well as over 1.8 million square feet of retail (existing and under construction), 1.3 million square feet of office, over 1,800 multifamily units and three hotels. This Offering provides an investor a once in a lifetime opportunity to gain a significant foothold in one of the premier mixed-use developments in the United States and to control the majority of undeveloped sites therein. The approximately 36-acres of undeveloped sites are zoned for development in excess of 12 million square feet of office space or multi-family units. The Offering represents an extraordinary covered-land opportunity, as cash flow from the existing, improved assets- leased long term to tenants including Amazon and HomeAway - is sufficient to carry the holding costs of the undeveloped acreage as those sites are developed or sold off. Offering format. As noted, the assets noted herein are offered individually, as a Portfolio, or on a sub-portfolio basis. While offers on any collection of assets are encouraged, the Owner has broken the Offering down into three sub-portfolios which include 1) Improved Properties (both controlling and non-controlling interests), 2) Office Land, and 3) Land. Note that certain sites, capable of being developed on a commercial or residential basis, are included in both the Office and sub-portfolios. An Offer Date to acquire any or all interests summarized herein will be established at a later date.

4 GAULT L ANE OFFICE BLOCK E Office One West DOMAIN Bank DOMAIN 7 Office OFFICE BLOCK B GATEWAY Office ALTERRA PARKWAY OFFICE/RESIDENTIAL BLOCK C Office r e Ov l tia en tail d i s Re Re VD BL N I MA DO DOMAIN e1 r Le Cordon Bleu Hotel Over ial nt il ide eta s R Re DOMAIN 4 EA Electronic Arts Ov ce ail Offi Ret 2 Over Chase Office DOMAIN Blackbaud 3 Aloft RETAIL ALOFT DOMAIN DR PALM WAY Multi-Housing Hotel Seniors-Housing ROCK ROSE Over er Ov r ve e O il c a DOMAIN Offi Ret Site Included in Offering Anchor 138,000 SF r e Ov Neiman Marcus Garage Office/ Multi/ Hotel/ MO -PA C EX PR ES SW AY Under Construction Planned MIXED-USE DEVELOPMENT Consistent with Austin s long-term development plan, the city rezoned the entire development and amended the zoning charter to create a Planned Development Area Combining District in Allowable uses include virtually unlimited office, retail, lodging and residential uses. Currently, the site has plans for five office properties and five residential properties; however, investors are encouraged to make their own assumptions on uses and square footage based on provided information. 4 T H E D O M A I N I N V EST M E N T S U M M A RY H F F PDA REQUIREMENT FAR 8 to 1 Front Yard No Minimum Side/Rear Yard No Minimum Density No Minimum Site Coverage Maximum ESPERANZA WAY Office Whole Foods Market OFFICE/RESIDENTIAL BLOCK D Office OFFICE/ RESIDENTIAL BLOCK G Office

5 BURNET RD RESIDENTIAL BLOCK N IBM RESIDENTIAL BLOCK M RESIDENTIAL BLOCK Q DOMAIN P BLOCK Wells Fargo BRAKER LANE CENTRAL PARK of Commerce DOMAIN BLOCK K DOMAIN BLOCK J Office KRAMER LANE (Future Extension) IBC RETAIL BLOCK A International Bank RESIDENTIAL BLOCK L Lone Star Court Westin Hotels & Resorts Dillard s Dick s Sporting Goods Macys CURRENT DEVELOPMENT STATUS All of the sites included herein are part of The Domain, an approved master planned development, and are subject to no entitlement risk. Due to the components completed in Phase I, an investor will receive the following benefits: Ability to develop multiple residential, lodging or office properties and more than 12 million square feet. Access to existing plans for the development which is currently slated to have five residential complexes and five commercial buildings. Inclusion in the overall Domain development including all common areas, roads and access points. T H E D O M A I N I N V EST M E N T S U M M A RY H F F 5

6 portfolio investment highlights STRONG CASH FLOW WITH SUBSTANTIAL UPSIDE POTENTIAL The Portfolio presents investors strong current cash flow from an 89% leased Improved Property rent roll as well as additional upside from the remaining vacant space. This cash flow covers the carrying costs associated with the vacant land sites as they are developed or sold down over time. The Improved Properties consist of: BUILDING/TENANT SF % OF PORTFOLIO % LEASED EXPIR. AVG. YEARS REMAINING YEAR BUILT/ RENOV. DOMAIN 2 114,665 SF 16.9% 100.0% 11.1 years 2014 HomeAway 114,665 SF 16.9% 100.0% Feb years DOMAIN 3 179,006 SF 26.4% 100.0% 6.3 years 1975/2001 Blackbaud 112,535 SF 16.6% 62.9% Sep years KingsIsle 35,223 SF 5.2% 19.7% Jun years XO Communications 20,041 SF 3.0% 11.2% Jul years Rodan & Fields 11,207 SF 1.7% 6.3% Jun years DOMAIN 4 152,992 SF 22.6% 100.0% 1.8 years 1975/2001 Electronic Arts 78,010 SF 11.5% 51.0% Aug years TCA Acquisition 74,982 SF 11.1% 49.0% Dec years DOMAIN 7 221,973 SF 32.8% 67.0% 4.9 years 2015 Amazon 75,556 SF 11.2% 34.0% Jun years Ottobock 37,782 SF 5.6% 17.0% May years Brookfield 19,590 SF 2.9% 8.8% Nov years Lee Hayes Law Firm 9,236 SF 1.4% 4.2% Jan years ALOFT RETAIL 8,617 SF 1.3% 100.0% 8.3 years 2009 The Park 8,617 SF 1.3% 100.0% Apr years DOMAIN PORTFOLIO TOTAL/AVG 677,253 SF 100.0% 89.2% 5.6 years 6 THE DOMAIN INVESTMENT SUMMARY HFF

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8 portfolio investment highlights THE DOMAIN The Domain is one of the premier mixed-use developments in the Southern United States. It is located at the geographic center of Austin and acts as Austin s second downtown providing residential, entertainment, retail and office uses. The Domain includes best in class retailers such as Neiman Marcus, Nordstrom, Whole Foods Market, Apple, Burberry, Louis Vuitton, Tiffany & Company, Anthropologie, and H&M, in addition to 1.5 million square feet of office space, 1,856 residential units and almost 600 hotel rooms. Within the next decade, over 6,000 residents and 12,000 employees will come to live,work,shop and play in this high-quality urban community. Existing Domain 1.8 million square feet of retail 1.5 million square feet of office 1,856 multifamily units 598 hotel rooms in 3 hotels Future Domain Plans 1.8 million square feet of retail 3.5 million square feet of office 5,000 multifamily units 750 hotel rooms in 4 hotels LIVE, WORK AND PLAY NEIGHBORHOOD The Portfolio provides an unparalleled opportunity to control the remaining development of a unique live, work and play community. The Domain capitalizes on the the national trend of the millenial movement, which has popularized urban infill product with walkable amenities and attracted employers to recruit and retain the top millenial talent. The success enjoyed by The Domain in this regard can be seen by the recent decisions by HomeAway and Amazon to relocate to the project as well as the and the near 100% occupancy enjoyed by retail and multi-housing developments that have been delivered in recent months. 8 THE DOMAIN INVESTMENT SUMMARY HFF

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10 SUPERIOR INFILL LOCATION The Domain is ideally positioned on 304 acres in Northwest Austin near the intersection of US Highway 183, MoPac Expressway (Loop 1) and Capital of Texas Highway (Loop 360), providing exceptional access to all areas of Austin including the infill neighborhoods of Tarrytown, West Lake Hills, Northwest Hills and Brentwood as well as the sprawling suburbs of Cedar Park, Round Rock and Georgetown. Immediate access to the major arteries also provides convenient access to the major business centers including Downtown, Northwest, Southwest as well as corporate campuses including Apple, National Instruments, IBM, the future Charles Schwab campus and the adjacent University of Texas JJ Pickle Research Campus redevelopment. Within a 10-mile radius of the property, there are over 824,000 people or approximately 43% of the population of the Austin MSA. Additionally, traffic counts on MoPac at the Domain exceed 140,000 vehicles per day. D DESCRIPTION 1 MILE 3 MILE 5 MILE Population 2020 Projection 7, , , Estimate 7, , , Census 7, , ,414 Growth % 5.82% 6.99% Growth % 6.13% 8.07% 2015 Est. Average Household Income $75,719 $76,113 $77, Est. Median Household Income $60,556 $55,714 $55,396 *Source: Claritas, Inc ,000 PEOPLE WITHIN A 10 MILE RADIUS OF B that is 43% of the population EXCELLENT TRANSPORTATION NETWORK The Property enjoys access to major arteries such as US Highway 183 (180,000 VPD), Loop 360 (45,000 VPD), MoPac Expressway (120,000 VPD), and primary thoroughfares including Burnet Road and Braker Lane via the 13 points of access to The Domain. Just north of the Property is SH 130, a 90-mile toll way that allows easy access to The Domain for the large employee base that commutes from Williamson County. Additionally, Austin s Capital MetroRail began in 2010 and runs 32 miles between Leander and Downtown Austin with nine stations along the way, including one at Kramer Lane adjacent to The Domain providing tenants light rail access to the MSA.

11 OWNTOWN THE ARBORETUM Braker Lane JJ PICKLE REDEVELOPMENT urnet Road Alterra Parkway MoPac Expressway THE DOMAIN INVESTMENT SUMMARY HFF 11

12 portfolio investment highlights AUSTIN S LARGEST AND MOST DYNAMIC SUBURBAN OFFICE SUBMARKET The Northwest submarket ranks as Austin s largest office submarket with over 16.3 million rentable square feet. It is typically Austin s demand leader as it is home to many of Austin s largest corporate users. The market is currently 90% occupied and boasts an average rental rate of $29.16 per square foot (gross). Since 2011, the Northwest submarket has absorbed 1,167,427 square feet and increased rental rates by 14% (nearly 5% annually). Strong Demand for Office Northwest Austin has seen tremendous growth and the demand for additional office for traditional corporate users and technology tenants has never been greater. Office tenants are drawn to Northwest Austin for the proximity to housing as well as the amenity base. The Domain specifically offers the millennial workforce the walkability factor typically seen in downtown areas, providing the live/work/ play environment increasingly used as a recruiting tool for employers. The Domain is prime for additional office development. Rental Rates in Northwest Austin have grown rapidly, with new construction garnering rents in excess of $26.00 NNN per square foot. Since 2009, Northwest Austin has seen only 376,478 square feet in deliveries and has absorbed over 1,000,000 square feet in that same time period. Consequently, occupancies and rental rates have both steadily increased over that period. The Northwest Class A market has outperformed the Northwest market during this same time frame. Since 2009, rental rates have increased $2.24 PSF and occupancy has improved by 5.7 percentage points to 89.2%. 12 THE DOMAIN INVESTMENT SUMMARY HFF

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14 portfolio investment highlights THRIVING MULTIFAMILY MARKET & BEST IN CLASS DOMAIN RESIDENCES The Austin multifamily market continues to thrive alongside its robust economy. With over 30,000 jobs predicted for 2015 and positive net in-migration, the City has seen tremendous leasing velocity and enjoys 95% occupancy with average rents of $1.26 psf or $1,070 per month. Comprised of over 19,000 units and consistently averaging over 95% occupancy, the Far North submarket is one of Austin s healthiest sectors. Over the last 12 months, the submarket absorbed 995 units and maintained an average rent of $1.28 psf for Class A product. The Domain features 1,856 units housed in five communities with an average rent of $1.55 psf, roughly 20% above market. The newest and highest priced property, The Kenzie, achieves the highest rental rates in the region at $2.00 psf or an average $1,680 per month. Excluding IMT at the Domain III & The Kenzie, which are still in lease-up, residences within The Domain are 95% occupied and boast an average lease up period of 6-9 months. Average occupancy overall is currently 85%. 14 THE DOMAIN INVESTMENT SUMMARY HFF

15 STRONG DEMAND FOR RESIDENTIAL UNITS IN AUSTIN Since 2000, Austin has been the third fastest growing large city in the country with over 27% growth in that time period. Northwest Austin has benefited greatly from this growth and remains a popular destination for residents due to the superior transportation and proximity to restaurants, bars, retail and cultural attractions. The success of The Domain residences has been driven by the opportunity to live within the master planned development, which provides walkable access to all the nearby amenities creating an urban feel at affordable pricing to renters. rental pricing in Northwest Austin, in many cases, has exceeded $1.25 PSF a month with occupancy levels of 95%. These metrics have been amply illustrated by the solid track record of existing Domain Multifamily projects which have exceeded $1.60 PSF and 95% occupancy for stabilized product. Absorption in Far North/Northwest Austin is very strong with 1,509 units absorbed YTD or roughly 4% of the available inventory annually. Since 2010, the submarket has exceeded Austin s equilibrium point of 95% occupancy increasing demand and highlighting the need for additional units. This growth in construction of roughly 3,300 units in the next 12 months is required to support the continued growth of this superior residential area. THE DOMAIN INVESTMENT SUMMARY HFF 15

16 AUSTIN BOOMING AUSTIN ECONOMY Ranked by Forbes as the Fastest Growing City in the Country and one of the Top Five Best Cities for New Jobs for the fourth year in a row, Austin continues to expand and flourish with over 30,000 new jobs in the past 12 months and over 140 new residents per day. Fueled by numerous corporate relocations and expansions in the area, Austin is experiencing growth at twice the national pace and boasts record setting unemployment rates of 3.4% as of December Dubbed the Silicon Hills, Austin is one of the nation s preeminent locations for technology, with more than 120,000 employees at 4,444 technology companies including Apple, Facebook, AMD, Freescale, Samsung, Cisco Systems, Intel, Dell, Oracle, National Instruments, and many others. Recent major nearby corporate announcements include Apple (3,000 new jobs), Charles Schwab (820 new jobs), Websense (470 new jobs), HomeAway (300 new jobs), Amazon (240 new jobs), Ottobock Healthcare (110 new jobs) and many more. TOP AUSTIN EMPLOYERS ACCOLADES #1 City to Watch - Forbes #1 Economy in the Country - The Business Journal #1 Hot City for Jobs & Culture - U.S. News #1 Best Performing City - Miliken Institute State of Texas 70,074 University of Texas at Austin 24,183 Dell Inc. 14,000 Seton Healthcare Network 12,770 St. David s HealthCare 8,100 IBM Corporation 6,000 U.S. Internal Revenue Service 5,561 Freescale Semiconductor Inc. 5,000 Texas State University San Marcos 4,861 Flextronics 4,700 Apple Computer 4,000 Austin Community College 3,515 AT&T Inc. 2,800 Whole Foods Market Inc 2,800 Applied Materials 2,727 National Instruments 2,640 Samsung Austin Semiconductor 2,600 AMD, Inc. 2,500 Keller Williams Realty 1,989 Lower Colorado River Authority (LCRA) 1,810 Time Warner Cable 1,719 Austin Energy 1,700 Hewlett-Packard 1,669 Sears Customer Care 1,500 General Motors 1,400 Source: Greater Austin Chamber of Commerce

17 1 CENTRAL BUSINESS DISTRICT THE DOMAIN INVESTMENT SUMMARY HFF 17

18 Austin continued. ADDITIONAL INFORMATION If you have any questions or require additional information, please contact any of the individuals below. ANDREW LEVY Senior Managing Director (o) (c) contact info TODD SAVAGE Managing Director (o) (c) SEAN SORRELL Senior Managing Director (o) (c) KELSEY ROOP Associate Director (o) (c) BEN BEAIRD Director (o) (c) PATRICK MCCORD Senior Analyst (o) (c) HFF AUSTIN OFFICE 500 West 5th Street Suite 1200 Austin, Texas HFF DALLAS OFFICE 2323 Victory Avenue Suite 1200 Dallas, Texas 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 property [properties] to market it [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.