Shreveport, Louisiana

500 Fannin Street Shreveport, Louisiana Real Estate Investment Sealy Real Estate Services 333 Texas Street Suite 1050 Shreveport, LA 71101 318.222.8700 www.sealynet.com

500 Fannin Street Shreveport, Louisiana 8 Story Building & Parking Garage 2

Property Summary Opportunities Like This Do Not Come Along Every Day 500 Fannin Street is a 152,205 square foot, 8 story office building which includes a basement and a 300 car parking garage located on approximately 2.35 acres (320 by 320 ). This property offers a prime opportunity for redevelopment for office, government, educational, residential or mixed use. It was built in 1974 for Federal Government Offices and Courts and was vacated in 1994. Located in the heart of downtown Shreveport, 500 Fannin is known by most as the Waggonner Building which was named after Joe D. Waggonner who was a highly respected statesman who served 18 years in the United States Congress. The structure is of steel frame with concrete panels and was designed to accommodate two additional floors to both the building and parking garage. The office building floor plates range in size from 8,709 square feet in the basement to 29,114 square feet on the 2nd floor. The property is located on the north side of Shreveport s Central Business District and bordered by Caddo Street on the north, Fannin Street on the south, McNeil Street on the west and Marshall Street on the east. It is adjacent to the Shreveport Convention Center and the State Courts, is two blocks west of the Federal Courthouse and three blocks north of the Caddo Parish Courthouse. It is in walking distance to the Shreveport Riverfront and casinos. It is also adjacent to a 436 car parking garage which is owned by the Downtown Shreveport Development Corporation (DSDC). The location within downtown provides excellent access to I-20, I-49, Bossier and Highway 1. The parking garage is a primary attribute and amenity for the property, regardless of whether it is redeveloped for office, apartments, government, education or a mix of these uses. The central location with quick access to I-20, I-49 and Bossier are positive attributes and its close proximity to the Convention Center and courts are good. The design and size of the floor plates are such that each floor can serve as a single tenant floor or multi-tenant floor. 3

SITE Located on the Northeast corner of Marshall & Fannin Streets Bordered by Caddo, Fannin, McNeil, and Marshall Streets 2.35 acres Water City of Shreveport Sewer City of Shreveport Electricity AEP Swepco Gas CenterPoint Energy Zoned B-4 PROPERTY DETAILS IMPROVEMENTS Built in 1974 Gross Building Area: 152,205 sq. ft. Basement: 8,709 sq. ft. 1st Floor: 24,342 sq. ft. 2nd Floor: 29,114 sq. ft. 5th 8th Floors: 15,340 sq. ft. 300± parking spaces within garage and surrounding surface areas EXISTING CONDITIONS The building has been vacant for many years. Current ownership has completed partial renovation which encompasses the following: Demolition and abatement of asbestos in the basement and floors one through three (approximately 50% of the total size of the building) New roof on upper roof Replacement of elevator cabs The Property 4

Floor Plans B C E F G J K 9 10 11 12 13 Basement 8,709 SF The Property 5

Floor Plans B C E F G J K B C E F G J K 9 9 10 10 11 11 12 12 13 13 First Floor 24,342 SF Second Floor 29,114 SF The Property 6

Floor Plans B C E F G J K B C E F G J K 9 9 10 10 11 11 12 12 13 13 Third Floor 15,340 SF Fourth Floor 15,340 SF The Property 7

Floor Plans B C E F G J K B C E F G J K 9 9 10 10 11 11 12 12 13 13 Fifth Floor 15,340 SF Six Floor 15,340 SF The Property 8

Floor Plans B C E F G J K B C E F G J K 9 9 10 10 11 11 12 12 13 13 Seventh Floor 15,340 SF Eighth Floor 15,340 SF The Property 9

Distance in Miles to Five Metro Areas Dallas, Texas 190 Little Rock, Arkansas 215 Houston, Texas 245 New Orleans, Louisiana 327 Jackson, Mississippi 215 Location 10

Shreveport is Louisiana s third largest city in the state and the largest city in northwest Louisiana. Shreveport-Bossier s metropolitan population is approximately 400,000 and growing. Well situated within a day s drive to reach a population of over 30,000,000 via Dallas-Fort Worth, Houston, Baton Rouge, New Orleans, Little Rock, Jackson and Memphis, the City of Shreveport is poised to continue attracting new companies and jobs such as Module X, Benteller Steel and Lubetech, to name a few. Shreveport s Central Business District is home to over 2,000,000 square feet of multi-tenant of office buildings with occupancies averaging approximately 85%. Also located in the CBD is a mix of hotels, apartments, government buildings, casinos and Shreveport s Convention Center. This concentration of businesses and government is easily accessible to Interstate 20, Interstate 49, and Highway 1. LOCATION The property s location within the Central Business District is simply outstanding, situated on the corner of Fannin Street and Marshall Street. 500 Fannin is located in the most desired area of the Central Business District. A couple blocks north to 500 Fannin is Regions Center, the largest and most prestigious office complex in north Louisiana. To the northeast is Louisiana Tower, also a Class A high rise office building, and further northeast are Riverfront Casinos, Riverscape Park and Sci-port Discovery Center. To the east is Shreveport s Festival Plaza and the main entry into Downtown as well as access to I-20. SUBJECT PROPERTY Location 11

LOCATION MAP 500 Fannin Street Office Tower Tower Tower Location 12

DOWNTOWN SHREVEPORT MARKET Office Market (Square Feet) Office Market Sq. Ft. Vacancy SF Vacancy Rate Rate/SF Class A 1,166,494 53,142 5% $11-$17 Class B 1,241,449 105,669 10% $9-$15 Estimated Worker Population 14,000 Federal Public Defender Justice Department Bureau of Alcohol Tobacco Firearms & Explosives U. S. Attorney U. S. Marshall U. S. Trustee U. S. Postal Service U. S. Secret Service U. S. Dept. of Housing & Urban Development Number of Parking Spaces 12,929 Number of Metered Parking Spaces 800 U. S. Census Tract Numbers 252, 253, 213 Government Offices City of Shreveport Parish of Caddo State of Louisiana Office of Risk Management Second Circuit Court of Appeal State Senator Greg Tarver State Representative Patrick Williams Army Recruiting U. S. Senator Mary Landrieu Department of Defense/Defense Contract Administration/Quality Assurance Office Food & Drug Administration General Services Administration Bureau of Immigration & Customs Enforcement Department of the Interior Bureau of Land Management Fifth Circuit Court of Appeals District Court District Court/Probation Office Bankruptcy Court Services and Utilities AEP/SWEPCO (Electrical) Centerpoint Energy (Gas) Greater Shreveport Chamber of Commerce Shreveport-Bossier Convention & Tourist Bureau Civic Amenities ArtSpace Barnwell Art & Garden Center Festival Plaza Government Plaza (City/Parish) J. Bennett Johnston Waterway Regional Visitors Center Municipal Auditorium Multicultural Center of the South Parish Courthouse Public Library Robinson Film Center Riverfront Park Riverview Hall Riverview Theater Sci-Port:Louisiana s Science Center/IMAX Dome Theatre Planetarium Shreveport Chamber of Commerce Shreveport Convention Center & Hilton Hotel Southern University Museum of Art Location 13

Spring Street Museum Stage of Stars Museum Stageworks of Louisiana Strand Theatre (Historic Theater) Tipitina s Music Office Coop Shreveport Access Downtown Airport Excellent access from I-49 and I-20 SporTran Main Terminal (Municipal bus service) Greyhound Terminal Parking Perimeter and core surface lots, street meters, private/public garages Surface lots: $20 $90/month Private Garages: $50 $100 Meters: $.50/hour Entertainment ArtSpace Gallery & Exhibition space Downtown National Act Venues: Strand Theatre, RiverView Theater, RiverView Hall, Municipal Auditorium, Eldorado Resort Casino Shreveport (Casino & 405-room hotel) Robinson Film Center (Theater & Film Industry Educational Center) Sam s Town Shreveport (Casino & 514-room hotel) Sci-Port Discovery Center & IMAX Theater Commerce Street Clubs Red River District Museums & Centers Private Clubs Petroleum Club Shreveport Club DOWNTOWN SHREVEPORT MARKET Location 14

Office Of Cultural Development Division of Historic Preservation National Register of Historic Places in Louisiana Benefits of the National Register Honor: It is a great honor for a property to be listed on the prestigious National Register of Historic Places. This status can be very useful in helping to save historic buildings and sites because people typically hold Register properties in high regard and think twice about insensitive alteration and demolition. Protection: The National Register program also provides a measure of protection from federally assisted projects. For more information, visit the Advisory Council on Historic Preservation s web site. http://www.achp.gov Financial: There are several financial incentive programs available for National Register-listed properties in Louisiana: 1. Federal and State Tax Incentives 2. Restoration Tax Abatement Program: A state property tax relief program available for renovating owner-occupied homes as well as income-producing properties. The Louisiana Division of Historic Preservation does not administer this program. Tax Credits Contact: National Register Coordinator - Division of Historic Preservation P.O. Box 44247, Baton Rouge, Louisiana 70804, (225) 219-4595 Office Of Cultural Development Division of Historic Preservation Tax incentive Program The Louisiana Division of Historic Preservation administers the Federal Rehabilitation Tax Credit in conjunction with the National Park Service (NPS) and Internal Revenue Service (IRS) and two State tax credits in conjunction with the Louisiana Department of Revenue (LDR). The purpose of tax credits is to encourage the preservation of historic buildings through incentives to support rehabilitation of historic and older buildings. Since the inception of the Federal Rehabilitation Tax Credit, Louisiana has been a leader in certified tax credit projects, generating over $2 billion in private reinvestment in Louisiana communities. The State Commercial Tax Credit has leveraged more than $350 million in private reinvestment in Louisiana Downtown Development Districts and Cultural Districts. What is a tax credit? A tax credit is a direct, dollar for dollar, reduction in the amount of money a taxpayer must pay in taxes for a given year. For example, if a taxpayer owes $5,000 in taxes to the Internal Revenue Service, but has a $3,000 credit, he only pays $2,000. Thus he pockets the $3,000 he would otherwise have to pay in taxes. A credit is much better than a deduction which merely reduces a taxpayer s income and puts him in a lower tax bracket. Federal Historic Rehabilitation Tax Credit The Federal Rehabilitation Tax Credit is for 20% of the costs of rehabilitation expenses for an income producing building. The credit is available for income-producing properties that are contributing elements to a National Register Historic District, or individually listed on the National Historic Register. All properties must be certified by the National Park Service. To qualify, the rehabilitation work must exceed the adjusted basis for the building (either the purchase price minus the value of the land, or the current depreciated value). Historic Preservation 15

State Commercial Tax Credit The building must be a contributing element to a Downtown Development District (DDD) or a Cultural District. The building must be used for an income-producing purpose. Eligible expenses must exceed $10,000. This credit may be used in addition to the Federal Historic Rehabilitation tax credits, provided that the most stringent program requirements are met. It may also be combined with the State Residential Tax Credit Program if the building is mixed-use. State Residential Tax Credit Homeowners may qualify for a 25% tax credit (50% for vacant and blighted properties) against their individual state income taxes when they rehabilitate their historic home. The property must be the owner s primary residence. There is a $25,000 credit cap per building, with one credit allowed per building. Rehabilitation costs must exceed $10,000. For more information or first time tax credit inquiries please contact Nicole Kennelly P.O. Box 44247, Baton Rouge LA 70804 Phone:(225) 342-8154 Email:nkennelly@crt.la.gov Tax Credits Important Information The credit is not automatically available to any owner of an historic building. An application must be filed with DHP. Although not recommended, applications can be accepted after commencement of rehabilitation work. However, the Part 1 or Part A application must be submitted prior to the building s placement in service. It is best for an owner not to start construction until after the Part 2 application has been approved. If work is begun without an approved application, the owner proceeds at his own risk. Approval of a rehabilitation project by any other group, organization, or governmental entity does not insure approval by DHP or NPS. All applicants are advised to consult with their tax attorneys and/or certified public accountants in developing projects to determine if the credit will work for you. Historic Preservation 16

Shreveport-Bossier City MSA Market Summary Photo Courtesy of Shreveport-Bossier Convention and Tourist Bureau 17

SHREVEPORT MARKET SUMMARY North Louisiana: No. 1 Lowest Cost of Doing Business in the Nation and in North America Forbes named North Louisiana the most cost competitive place to do business in the United States. Business Facilities magazine named North Louisiana No. 3 among Low Cost Manufacturing Centers. KPMG Competitive Alternatives recognized the region as the No.1 most cost competitive area in North America in 2008 and in 2010. These rankings all point to the fact that North Louisiana offers a competitive cost structure. 2019 2014 2010 2000 Shreveport Bossier MSA Population Growth (2000-2019) 0 100,000 200,000 300,000 400,000 500,000 A COMBINATION OF FACTORS PROVIDE A LOW COST OF DOING BUSINESS IN LOUISI- ANA: The state effectively provides a zero corporate income Shreveport Bossier MSA Demographics tax environment for items produced in Louisiana and shipped out of state (single sales tax apportionment). Estimated Projected As of July 2009, electricity, water, natural gas, machinery and equipment used by manufacturers are exempt Year 2014 2019 Population 451,131 465,480 from Louisiana sales tax. Louisiana has a low percentage of unionized workers (4.3 percent reported by U.S. Bureau of Labor Statistics, # Of Households 180,227 186,923 2010), and the ratio of worker skill-to-pay favors businesses. Louisiana businesses have access to a competitive, comprehensive portfolio of state, local and federal incentives that can make a profound impact on a company s bottom line. Labor Costs As a right-to-work state, Louisiana offers affordable labor costs with high productivity and retention rates. The following table shows salaries for various occupations in North Louisiana. State Corporate Income Tax State Corporate Franchise Tax** Unemployment Insurance Tax 4% on the first $25,000 of net income 5% on the next $25,000 6% on the next $50,000 7% on the next $100,000 8% on the next $200,000 Louisiana uses single sales factor $1.50 per $1,000 or major fraction thereof up to $300,000 $3.00 per $1,000 or major fraction thereof in excess of $300,000 Standard rate range is.10%-6.2% Rate for new employers is the average rate fro the particular industry Maximum unemployment weekly benefit is $258 for 26 weeks Sales Taxes 4% sales tax with a local sale tax component, which combine ranges from 7%-10% Check out local sale tax rates As of July 2009, electricity, water, natural gas, machinery and equipment used by manufacturers are exempt from Louisiana sales tax. State Property Taxes (Mills*) Parishes Property Taxes 15% of assessed valuation Up to 2% of taxable value Industrial property and equipment can receive a ten year full abatment, depending on circumstances. Ranges from 58.63-186.59 Mills* Check out local rates * To calculate property tax, multiply the assessed value of the property by the appropriate millage rate. The assessed value is the fair market value of the property times 10% for real property or 15% for personal property. **Assessed on the value of all real and personal property in the state, or the amount of issued and outstanding capital stock, surplus, undivided profits and borrowed capital. Source: NLEP & LED Market Snapshot 18

North Louisiana s Strategic Location Allows Businesses to Reach Their Customers Since even before the Louisiana Purchase, our region s strategic location has been integral to our success. Historically, our region served as a prominent launching point for expansion-minded settlers heading west and a vibrant agricultural powerhouse where commodities were collected and sent via the Red and Ouachita Rivers to market. Today, North Louisiana continues to act as a strategic distribution hub for the entire South. Situated in the south central United States, North Louisiana is within a day s travel time to some of the largest markets with 30 million consumers. The region is connected nationally and globally by a multimodal system of Class 1 Rail, interstates and federal highways, two regional airports, and four ports. SHREVEPORT MARKET SUMMARY Area Development magazine ranked Louisiana No. 6 nationally. (September 2011) Forbes ranked Louisiana No. 30, jumping 14 places from a year ago. (November 2011) Pollina Corporate Real Estate Inc. ranked Louisiana No. 18, up 22 spots since 2008. (August 2011) Chief Executive magazine ranked Louisiana No. 27th, moving up 14 places from 2010. (May 2011) North Louisiana: Lowest Cost of Business Our region offers the lowest cost of doing business in the nation and in North America, as ranked by Forbes magazine (2011) and KPMG Competitive Alternatives (2010). North Louisiana s cost competitive tax structure, utility rates, transportation and labor costs offer businesses a sustainable solution for competing nationally and globally. TAXES ELIMINATED: Sales tax on manufacturing machinery and equipment Sales tax on natural gas and business utilities Capital gains tax on the sale of privately held businesses Phase out of the franchise tax on corporate debt by 2011 Minimum corporate franchise tax Louisiana also deducts federal income tax from state corporate income tax. These pro-growth policies have strengthened Louisiana s tax environment, making it a more competitive place to invest and develop a business. The state has also recently implemented the largest personal income tax cut in state history, putting more money back into the pockets of Louisiana s taxpayers. North Louisiana s Business Climate Climbs the National Rankings North Louisiana and the state are consistently climbing the national rankings for best business climate. In 2011, Louisiana jumped to its highest-ever business climate ranking by every leading publication that measures the economic progress of states. Over the past four years, no state has improved more than Louisiana. BEST NATIONAL BUSINESS CLIMATE RANKINGS: Site Selection magazine ranks Louisiana No. 7 in the U.S. (November 2011) Business Facilities has ranked Louisiana No. 2 in the U.S. (August 2011) A Business-Friendly Tax Environment Louisiana encourages business development by eliminating several taxes and creating a more business-friendly tax structure. In 2008, Louisiana ranked No. 6 for states with the lowest tax burden (Anderson Economic Group s State Business Tax Burden State Rankings) Louisiana also ranked No. 6 on business taxes to state profits Louisiana ranked No. 2 on business taxes to private GSP Taxes consumed only 12.2 percent of Louisiana business profits, compared to the national average of 16.7 percent Source: NLEP & LED Market Snapshot 19

SHREVEPORT MARKET SUMMARY Market Snapshot 20

Professional Background Beth King specializes in the selling and leasing of commercial properties in the Shreveport-Bossier market and north Louisiana. She has been with Sealy & Company for over 29 years and is a consistent top producer within the firm. Her experience and in-depth knowledge of the local commercial real estate market serve to benefit her clients, which include a wide range of local, regional and national companies. Beth s services include marketing commercial property, buyer and tenant representation and negotiations, market analysis and marketing plans. Beth King, SIOR Associate Broker 318.453.6066 (M) 318.698.1103 (D) Bethk@sealynet.com Sealy Real Estate Services Sealy Real Estate Services, LLC, the brokerage division of Sealy & Company, is committed to provide exemplary real estate services to commercial, industrial, and investment clients exclusively. These include owner-landlord representation as well as buyer-tenant representation. We provide brokerage services for selling, leasing, site selection, property development, and property management in seven states. In every case, we represent the best interest of our client. Our ten brokers and sales agents have significant experience in sales, leasing, marketing, and negotiation. Significant in-house resources include CAD for space planning, desktop publishing services, a comparables database, a tenant database, property databases, and construction management services. All information set forth in this brochure has been obtained from the Owner and its representatives, personal observation and/or sources, which are deemed reliable. Sealy & Company, LLC has no reason to doubt its accuracy, but does not guarantee it, nor are there any representations or warranties, expressed or implied, in this brochure. Information contained herein is subject to change or withdrawal without notice. 21