Eldridge Plaza - Offering Memorandum

$2,128,800 6.00% Cap Rate Eldridge Plaza - Offering Memorandum 928 N. ELDRIDGE PARKWAY HOUSTON, TEXAS Two-tenant retail center 100% leased, new 5-year leases Irreplaceable real estate Below market rents ELDRIDGE PLAZA N ELDRIDGE PARKWAY INTERSTATE 10 Presented by Austin Alvis 281.477.4300 www.newquest.com

OFFERING SUMMARY NewQuest Properties is pleased to exclusively offer for sale a fully-leased retail building totaling 4,800 square feet ( SF ) in Houston, Texas identified as Eldridge Plaza (the Property ). Located in the heart of the Energy Corridor, the Property sits in the southeast corner of Interstate 10 (the Katy Freeway) and North Eldridge Parkway. The property benefits from high visibility and traffic generated by the daytime population in and around the Energy Corridor, commuting traffic along Interstate 10, and major residential areas to the South. Directly across the street from the entrance to the Property is Conoco Phillips world headquarters in the Energy Center 3 and Energy Center 4 office towers. Offering Summary CONTACT NewQuest Properties 8827 W. Sam Houston Parkway, N. Suite 200 Houston, Texas 77040 Austin Alvis aalvis@newquest.com 281.477.4335 2

KEY PROPERTY DETAILS The Woodlands 242 Price: $2,128,800 NOI: $127,728 249 Spring 45 59 146 Cap Rate: 6.00% Address: 928 N. Eldridge Pkwy. Houston, Texas 77079 Land Size: 18,291 SF (.04199 acres) Building Size: 4,800 SF 10 290 99 Cypress SITE Katy 6 610 1960 Houston 610 8 90 Baytown Property Overview Occupancy: 100% Year Built: 2000 Tenants: Kolache Factory Dream Kitchen & Bath Traffic Counts: 51,446 cpd on Eldridge 321,874 cpd on Interstate 10 90 90 59 Rosenberg Sugar Land 8 288 Pearland 6 146 45 Texas City G 1 MILE: 9,938 3 MILES: 81,250 5 MILES: 268,676 1 MILE: 8,790 3 MILES: 88,904 5 MILES: 233,181 1 MILE: 34.8 3 MILES: 36.9 5 MILES: 35.0 1 MILE: $113,665 3 MILES: $132,090 5 MILES: $110,782 1 MILE: 53.61% 3 MILES: 59.25% 5 MILES: 46.85% POPULATION DAYTIME POPULATION MEDIAN AGE AVERAGE HH INCOME EDUCATION BACHELOR S OR HIGHER 3

S. DAIRY ASHFORD RD. BEAR CREEK PARK / ADDICKS RESERVOIR ENERGY CORRIDOR DISTRICT PARK ROW COMING 2018 INTERSTATE 10 ELDRIDGE PLAZA Property Overview Trade Area Aerial ENERGY CENTER WESTLAKE PARK TULLY STADIUM & SPRING BRANCH ISD ATHLETICS COMPLEX STRATFORD HIGH SCHOOL HIGHWAY 6 ELDRIDGE PKWY. MEMORIAL DR. N 4

WESTLAKE PARK ELDRIDGE PLACE ENERGY CENTER 5 ENERGY CENTER 4 WESTLAKE PARK ENERGY CENTER 3 BROADSTONE MEMORIAL VILLAGE ON MEMORIAL Property Overview Site Aerial ELDRIDGE PLAZA ELDRIDGE PARKWAY INTERSTATE 10 N 5

KATY 6 MILES WESTLAKE PARK WESTLAKE PARK COMING 2018 VILLAGE ON MEMORIAL ENERGY CENTER 5 ENERGY CENTER 4 ENERGY CENTER 3 Property Overview Site Aerial INTERSTATE 10 ELDRIDGE PLAZA ELDRIDGE PARKWAY N 6

MEMORIAL CITY DOWNTOWN HOUSTON UPTOWN DISTRICT THE GALLERIA WESTCHASE INTERSTATE 10 ELDRIDGE PLAZA ELDRIDGE PARKWAY Property Overview Site Aerial N 7

125 INTERSTATE 10 127 121 Property Overview Site Aerial 134 ELDRIDGE PARKWAY N 8

TENANTS Tenant: Kolache Factory Size: 1,860 SF (38.75% of GLA) Lease Expiration: 8/31/2021 Renewal Options: Two (five-year) options Website: www.kolachefactory.com Tenant: Dream Kitchen & Bath Size: 2,940SF (61.25% of GLA) Lease Expiration: 9/30/2022 Renewal Options: One (five-year) option Website: www.dreamkitchenandbathtx.com Kolache Factory was founded in 1982 in Houston, Texas by cofounders John and Jerri Banks. Kolache Factory has been recognized across the country as one of the Top 5 Drive-thru s in America by the Food Network, one of the fastest growing companies in Houston, and was recently named one of the top 50 food service bakeries in the United States by Modern Baking magazine. Kolache Factory is privately owned and operated, and headquartered in Katy, Texas. There are currently 26 company-owned and 30 franchise stores primarily located in the Houston, TX area. Dream Kitchen and Bath was founded in Magnolia, Texas and is a complete home remodeling company. With two showrooms in the greater Houston area, the company serves clients in the surrounding region. Their services include kitchen remodeling, bathrooms, cabinets, countertops, and design services. The lease is personally guaranteed by the owners, Emad and Kimberly Takatka. Property Overview Tenants RENT ROLL Suite Tenant Size (SF) Rent Commencement Lease Expiration Rent / SF Notes 928 Kolache Factory 1,860 9/1/2016 8/31/2021 $31.50 5-Year Option 8/31/2026 $34.65 5-Year Option 8/31/2031 $38.12 Pays pro-rata share of CAM, taxes, and insurance 930 Dream Kitchen & Bath 2,940 10/1/2017 9/30/2022 $23.51 5-Year Option 9/30/2027 $25.65 Pays pro-rata share of CAM, taxes, and insurance Total Occupied SF 4,800 100% Total Vacant SF 0 0% Total SF 4,800 100% 9

THE ENERGY CORRIDOR The Energy Corridor is a suburban and business community in west Houston that successfully blends residential and urban-style development. Home to more than 300 CYPRESS CHAMPIONS 15 MILES companies and 91,000 employees, the Energy Corridor has become an epicenter for business development outside of the CBD. Ranked as the third largest employment center 10 MILES in the City, the area also boasts over 26,000 acres of parks, affluent residential neighborhoods, and leading schools, positioning the Energy Corridor as a leading example of how SITE 5 MILES GREATER HEIGHTS to combine urban convenience with suburban amenities. KATY DOWNTOWN HOUSTON MEYERLAND FULSHEAR SUGARLAND The Energy Corridor District in Context TOP EMPLOYERS THE ENERGY CORRIDOR THE ENERGY CORRIDOR DISTRICT Market Overview Nearly 800,000 employed persons and more than 43% of all Houston area architects and engineers live within a 30 minute commute zone of The Energy Corridor 9,537 employees 3,000 employees 2,600 employees 845 employees Over 75% of the community s nearly 19 million square feet of office space is class A By 2030, office/mixed-use space is expected to reach 45.2 million square feet. 450 employees 400 employees 400 employees 400 employees 10

HOUSTON QUICK FACTS Downtown Houston POPULATION City of Houston: 2.3 million residents Houston MSA: 6.8 million residents (9 counties) The Houston MSA is larger than Missouri or Maryland US COMPARISON 4th most populous city 5th most populous metro area 6th largest U.S. metro economy ECONOMY 492.7 billion nominal gross area product for the Houston MSA If it were ranked as a country, Houston would rank as the world s 23rd largest economy, just behind Taiwan The Houston GDP is expected to more than double between 2015 and 2040 INCOME Per capital personal income (PCPI) of $54,346 (13% above national average) EMPLOYMENT (NON-FARM) Total employment for the Houston MSA was 3,000,000 jobs, more than 35 states Houston employs more than 25% of the nation s oil and extraction jobs Houston is home to 87,500 engineers and architects, more than any other US metro area Galleria / Uptown Market Overview HOUSING Single family home closings were 91,485 in 2016 (an average of one closing every six minutes) COST OF LIVING Houston s cost of living is 5.8% below the national average Houston s housing costs are 11.6% below average, and 37.3% below average for large metro areas 11

CORPORATE ECONOMY Ranked 4th in the nation among US metro areas for the number of Forbes Fortune 500 company headquarters Home to 20 of the Fortune 500, 7 of the Fortune Global 500, and 24 of Forbes Global 2000 companies THE TEXAS MEDICAL CENTER World s largest medical complex, home to many of the world s leading institutions Encompasses 50 million SF, employs 106,000 people, and over 10 million annual patient visits THE PORT OF HOUSTON & HOUSTON SHIP CHANNEL Nationally ranked 1st in import tonnage for 25 years straight and 2nd in total tonnage for 23 straight years The largest Gulf Coast container port Contributes to over 1,026,820 jobs throughout Texas Home to the largest petrochemical complex in the U.S. (second largest in the world) Texas Medical Center Largest Houston Area Area Employers Employers - 2013 Company Employees Memorial Hermann Health System 19,500 The University of Texas MD Anderson 19,290 United Airlines 17,000 Exxon Mobil Corporation 13,191 Shell Oil Company 13,000 Houston Methodist 13,000 Kroger Company 12,000 National Oilwell Varco 10,000 Schlumberger Limited 10,000 BP America, Inc. 9,537 UTMB Health 9,318 Baylor College of Medicine 9,232 Chevron 9,000 HP 9,000 ARAMARK Corp. 8,500 Pappas Restaurants, Inc. 8,000 HCA 7,855 Macy s 7,000 AT&T 6,900 The Dow Chemical Company, Freeport 6,100 Baker Hughes Incorporated 6,000 H.E.B. 6,000 St. Luke s Episcopal Health System 6,000 Texas Children s Hospital 6,000 Jacobs 5,800 Halliburton 5,748 Fiesta Mart, Inc. 5,500 Archdiocese of Galveston-Houston 5,220 KBR 5,089 LyondellBasell Industries 5,080 CenterPoint Energy 5,000 JPMorgan Chase 5,000 Market Overview Note: Ranked by number of employees. The list does not include casual dining establishments, municipalities, school districts, community colleges, public universities (except UTMB Health and The University of Texas MD Anderson) and governmental agencies. 12

INFORMATION ABOUT BROKERAGE SERVICES Information About Brokerage Services Texas law requires all real estate license holders to give the following information about brokerage services to prospective buyers, tenants, sellers and landlords. TYPES OF REAL ESTATE LICENSE HOLDERS: A BROKER is responsible for all brokerage activities, including acts performed by sales agents sponsored by the broker. A SALES AGENT must be sponsored by a broker and works with clients on behalf of the broker. A BROKER S MINIMUM DUTIES REQUIRED BY LAW (A client is the person or party that the broker represents): Put the interests of the client above all others, including the broker s own interests; Inform the client of any material information about the property or transaction received by the broker; Answer the client s questions and present any offer to or counter-offer from the client; and Treat all parties to a real estate transaction honestly and fairly. A LICENSE HOLDER CAN REPRESENT A PARTY IN A REAL ESTATE TRANSACTION: AS AGENT FOR OWNER (SELLER/LANDLORD): The broker becomes the property owner s agent through an agreement with the owner, usually in a written listing to sell or property management agreement. An owner s agent must perform the broker s minimum duties above and must inform the owner of any material information about the pro erty or transaction known by the agent, including information disclosed to the agent or subagent by the buyer or buyer s agent. AS AGENT FOR BUYER/TENANT: The broker becomes the buyer/tenant s agent by agreeing to represent the buyer, usually through a written representation agreement. A buyer s agent must perform the broker s minimum duties above and must inform the buyer of any material information about the property or transaction known by the agent, including information disclosed to the agent by the seller or seller s agent. AS AGENT FOR BOTH - INTERMEDIARY: To act as an intermediary between the parties the broker must first obtain the written agreement of each party to the transaction. The written agreement must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker s obligations as an intermediary. A broker who acts as an intermediary: Must treat all parties to the transaction impartially and fairly; May, with the parties written consent, appoint a different license holder associated with the broker to each party (owner and buyer) to communicate with, provide opinions and advice to, and carry out the instructions of each party to the transaction. Must not, unless specifically authorized in writing to do so by the party, disclose: that the owner will accept a price less than the written asking price; that the buyer/tenant will pay a price greater than the price submitted in a written offer; and any confidential information or any other information that a party specifically instructs the broker in writing not to disclose, unless required to do so by law. AS SUBAGENT: A license holder acts as a subagent when aiding a buyer in a transaction without an agreement to represent the buyer. A subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first. TO AVOID DISPUTES, ALL AGREEMENTS BETWEEN YOU AND A BROKER SHOULD BE IN WRITING AND CLEARLY ESTABLISH: The broker s duties and responsibilities to you, and your obligations under the representation agreement. Who will pay the broker for services provided to you, when payment will be made and how the payment will be calculated. LICENSE HOLDER CONTACT INFORMATION: This notice is being provided for information purposes. It does not create an obligation for you to use the broker s services. Please acknowledge receipt of this notice below and retain a copy for your records. Home Asset, Inc., dba NewQuest Properties 420076 - (281)477-4300 Licensed Broker/Broker Firm Name or Primary Assumed Business Name H. Dean Lane, Jr. 366134 dlane@newquest.com (281)477-4300 Designated Broker of Firm License No. Email Phone Licensed Supervisor of Sales Agent/Associate License No. H. Dean Lane, Jr. 366134 dlane@newquest.com (281)477-4300 License No. Email Email Phone Phone Sales Agent/Associate s Name License No. Buyer/Tenant/Seller/Landlord Initials Email Regulated by the Texas Real Estate Commission (TREC) Information available at http://www.trec.texas.gov 8827 W. Sam Houston Parkway N. Suite 200 Houston, Texas 77040 281.477.4300 The information herein is subject to errors or omissions and is not, in any way, warranted by NewQuest Properties or by any agent, independent associate or employee of NewQuest Properties. This information is subject to change without notice. Date Phone Disclaimer & Disclosures 13

DISCLAIMER Prospective purchasers are hereby advised the Owners ( Owner ) of the Property are soliciting offers through NewQuest Properties ( NewQuest ), which may be accepted or rejected by the Owners at the Owners sole discretion. Any solicitation of an offer for the Property offered hereunder will be governed by this Offering, as it may be modified or supplemented. Prospective purchasers are advised that as part of the offer process, the Owners will be evaluating several factors including the experience and financial qualifications of the purchasing entity. The Owners shall have no obligation to accept any offer from any prospective purchaser. The Owners reserve the right to withdraw the Property from consideration at any time prior to final execution of a Purchase Agreement. This Offering document is furnished to prospective purchasers for the purpose of determining whether to invest in the Property offered hereby. The information contained herein, or any other related information provided by the Owners, may not be reproduced, redistributed or used in whole or in part without the prior written consent of the Owners. No person has been authorized to give any information or make any representation or warranty, either expressed or implied and, if given or made, such information or representation must not be relied upon. While the Owners and NewQuest have no reason to believe that the information provided herein or in subsequent information updates delivered to potential purchasers hereunder contains any material inaccuracies, neither the Owners nor NewQuest nor any of the Owners or NewQuest s respective subsidiaries, affiliates, companies, or the officers, directors, employees, agents and representatives of any such entities, etc., make any representations or warranties, expressed or implied, as to the validity, accuracy or completeness of the information provided or to be provided, and nothing herein shall be deemed to constitute a representation, warranty or promise by any such parties as to the future performance of the Properties or any other matters set forth herein. Any obligations to prospective purchasers that the Owners may have with respect to the Properties are limited to those expressly set forth in a fully executed Purchase Agreement between the parties. Prospective purchaser s sole and exclusive rights against the Owners, with respect to this prospective transaction, the Property, or information provided herein or subsequently, shall be limited to those remedies expressly provided in an executed Purchase Agreement, which shall not survive the closing. Further, in no event shall prospective purchasers have any claims against the Owners, NewQuest, or any of their respective affiliates for any damages, liability, or causes of action relating to the Purchase Agreement. Prospective purchasers are not to construe the contents of this Offering or any prior or subsequent information communications from the Owners or any of their respective officers, employees or agents as legal, tax or other advice. Prior to purchasing, prospective purchasers should consult with their own legal counsel and personal and tax advisors to determine the consequences of an investment in the Property and arrive at an independent evaluation of such investment. No commission or finder s fee shall be payable to any party by the Owners nor any affiliate or agent thereof in connection with the sale of the Property unless otherwise agreed to by the Owners in writing. Acquisition of properties such as the these offered hereunder involves a high degree of risk and are suitable only for persons and entities of substantial financial means. Disclaimer & Disclosures 14

Please Submit Offers to Austin Alvis 281.477.4335 aalvis@newquest.com 8827 W. Sam Houston Parkway, N. Suite 200 Houston, Texas 77040 www.newquest.com 03.12.2018