Apex distribution center Houston, Texas Executive Summary. premier class a project developed by crow holdings industrial in northwest houston

Apex distribution center Houston, Texas Executive Summary premier class a project developed by crow holdings industrial in northwest houston

Apex distribution center HFF is pleased to offer for sale Apex Distribution Center (the Property ), three Class A industrial warehouse buildings developed by Crow Holdings Industrial and comprised of 410,060 square feet near the intersection of Beltway 8 and Highway 290 in Northwest Houston. The Property is currently 86% leased to five tenants, encompassing a blend of national and regional tenants which represent a diversified range of business sectors with no oil and gas exposure. With 56,600 square feet remaining of current vacancy, Apex Distribution Center provides investors a unique opportunity to capture outsized income growth by capitalizing on strong tenant demand in Houston s premier industrial submarket. Property Summary Year Built Rentable Area % Leased # of Tenants Wtd. Avg. Remaining Term Finish-out Office Building Type Building Depth Truck Court Clear Height Column Spacing Dock Doors Parking Spaces Building 1 5750 Brittmoore Rd 2005 140,110 SF 100.0% 2 8.6 Years ± 8.5% Class A Tilt-Wall Industrial Warehouse 316' 120' 32' 40' x 45' 15 Dock High 1 Drive Up Ramp 31 Auto 24 Trailer Building 2 10634 Tanner Rd 2015 204,070 SF 72.3% 2 5.3 Years ± 3.1% Class A Tilt-Wall Industrial Warehouse 210' 130' - 145' (shared) 30' 60' x 55' (Staging Bay) 50' x 52' (Interior Bay) 48 Dock High 2 Drive Up Ramps 113 Auto 43 Trailer Building 3 10618 Tanner Rd 2015 66,420 SF 100.0% 1 6.0 Years ± 8.0% Class A Tilt-Wall Industrial Warehouse 210' 127' 28' 60' x 55' (Staging Bay) 50' x 52' (Interior Bay) 18 Dock High 2 Drive Up Ramps 86 Auto 18 Trailer 410,600 SF 86.2% 5 6.5 Years ± 5.7% 81 Dock High 5 Drive Up Ramp 230 Auto 85 Trailer Building/Address TOTAL/AVERAGE Sponsorship Crow Holdings Industrial ( CHI ) is the industrial development arm of Crow Holdings, capitalizing on more than six decades of industrial development experience. CHI is a stable, well-capitalized real estate development firm that focuses on speculative and build-to-suit industrial projects in major distribution markets nationwide where the firm s leaders have strong market knowledge. CHI takes a strategic and targeted approach to building best in class warehouse, distribution, and manufacturing facilities. For more information, please visit www.crowholdingsindustrial.com. A P E X D I S T R I B U T I O N C E N T E R 2

Apex distribution center site plan B R I T T M O O R E R O A D BUILDING 1 APEX DISTRIBUTION CENTER Dawn 89,710 SF 171 Site Size: 24.68 Acres LLY Tech 50,400 SF 461 BUILDING 3 210 Eleganza 66,420 SF 312 316 194 4 185 TANNER ROAD 960 BUILDING 2 Millennium 58,410 SF Available 56,600 SF 210 TSC 89,060 SF Designed and Constructed for the Modern Industrial Tenant Originally home to Goya Foods, Apex Distribution Center, a development of Crow Holdings Industrial, features 28 foot minimum ceiling clear height with dock high configuration and total office finish of less than 10%. 130 foot average truck court depth provides tractor trailers ample maneuverability and the building depths appeal to a wide array of industrial users seeking modern industrial space in Houston s Northwest submarket. Diversified Tenancy Mix with Credit and lease term The tenants of Apex Distribution Center represent many major industries including Food Services, Apparel, and Home Goods Distribution, with strong credit and no exposure to oil & gas. This impressive tenant roster which includes Dawn Food, Millennium Distribution, TSC Apparel, Eleganza Tiles and LLYTech handles distribution of products for a strong list of clients that continues to grow. With almost seven years of weighted average remaining lease term, investors stand to benefit from the strength and growth potential of in-place tenancy. Risk-Free Value Creation Potential investors have the opportunity to achieve a $243,000 increase in NOI, or a 4% CAGR, over the first 3 years of the hold period with minimal risk. The primary source of value creation comes from the lease up of 56,600 square feet of vacant space, which has strong leasing prospects and is considered an ideal size for the submarket. Mark to market opportunities also exist with expiring rents 4.5% below projected market rates, while annual base rent steps on each in-place lease provide strong contractual growth over the hold period. APEX DISTRIBUTION CENTER 3

Apex distribution center Preferred Submarket for Institutional Investors Northwest Houston continues to be the most popular submarket for institutional investors due to its infill nature and barriers to entry. The submarket s strategic location and affordable occupancy costs have led a number of the nation s largest retail, manufacturing and logistics companies to occupy facilities within its borders. This has resulted in remarkable fundamentals over past three years with over 9 million square feet of absorption and a very low average vacancy rate of 5.6%. The low vacancy rate helps drive market rent growth and perpetuate strong occupancy throughout an investor s hold period. Major property owners in the Northwest submarket include: Prologis Crow Holdings Industrial DCT Industrial EastGroup Invesco Cabot Industrial First Industrial Trust TIAA CREF Duke Realty Clarion Partners Exeter Liberty Property Trust DRA Advisors Agellan GIC GLP Cornerstone Principal Consistent Strength of Houston s Industrial Market Houston s industrial market remains one of the healthiest U.S. industrial markets. Fueled by strong population growth and increases in port activity, Houston is well positioned to see continued gains within both the local economic base and the industrial marketplace. As consumer spending increases, demand for industrial space will continue to grow over the immediate to long-term. Occupancy remained stable at 94.4% through the 1st quarter 2017, and asking rents for warehouse space ($6.44/SF NNN) remains among the highest rates in the city s history. Total net absorption in Q1 2017 was 784,395 square feet, with 10.6 million square feet of positive net absorption through the twelve months ended March 2017. The Houston MSA added net 14,800 jobs in 2016, with the education and health services, leisure and hospitality and trade, transportation and utilities sectors leading the way. Low vacancy rates, healthy leasing activity, and strong rent growth all speak to Houston s desirability and resilient demand drivers for industrial. A P E X D I S T R I B U T I O N C E N T E R 4

PROLOGIS JERSEY VILLAGE PORT NORTHWEST US 290 NOR THW EST FRE EWA Y WEST BY NORTHWEST INDUSTRIAL PARK BONDESEN BUSINESS CENTER FEDEX CAMERON SA BR IT M H OU S TO N P A DCT NORTHWEST 8 DISTRIBUTION CENTER LENNOX RK WA DCT BELTWAY TANNER Y SIEMENS, EMERSON TM O O RE RO Apex distribution center AD FEDEX INTREPID BUSINESS PARK DAHILL CSC TA ER NN R OA D

69 INVESTMENT SALES The Woodlands TRENT AGNEW, SIOR Director T. (713) 852-3531 tagnew@hfflp.com RUSTY TAMLYN, CCIM, SIOR Senior Managing Director T. (713) 852-3561 rtamlyn@hfflp.com HARRIS WESLEY HIGHTOWER Real Estate Analyst T. (713) 852-3495 whightower@hfflp.com George Bush Intercontinental Airport Greenspoint Lake Houston 69 FOR FINANCING INQUIRIES APEX DISTRIBUTION CENTER MICHAEL JOHNSON Associate Director T. (713) 852-3474 mjohnson@hfflp.com Energy Corridor HFF HOUSTON 9 Greenway Plaza, Suite 700 Houston, Texas 77046 T. (713) 852-3500 F. (713) 527-8725 hfflp.com FOR LEASING INQUIRIES MONTGOMERY Lake Houston State Park George Bush Park FORT BEND Westchase Sheldon Reservoir The Galleria Uptown District CBD 69 William P. Hobby Airport MATTESON HAMILTON Managing Director - Stream Realty T (713) 300-0299 mhamilton@streamrealty.com Smithers Lake GALVESTON Holliday Fenoglio Fowler, L.P., HFF Real Estate Limited (collectively, HFF ), HFF Securities L.P. and HFF Securities Limited (collectively, HFFS ) are owned by HFF, Inc. (NYSE: HF). HFF and its affiliates operate out of 24 offices and are a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform including debt placement, investmentbrazoria sales, equity placement, funds marketing, M&A and corporate advisory, loan sales and loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF.