4545 Kingwood Drive • Humble, Tx Property Summary Tenant Summary

4545 KINGWOOD DRIVE • HUMBLE, TX PROPERTY SUMMARY TENANT SUMMARY

Address: 4545 Kingwood Drive Square Feet % of Property Remaining Tenant Term Humble, Texas 77345 ANCHOR HEB 105,628 45.9% 19.3 Years JUNIOR ANCHOR Location: NEC of West Lake Houston Pkwy & Kingwood Dr Memorial Hermann 44,450 19.3% 12.7 Years INLINE Year Built Under Construction Banfield Pet Hospital 3,000 1.3% 9.5 Years Nails of America 3,500 1.5% 9.5 Years Total Property Size ±230,209 The Joint 1,120 0.5% 4.5 Years T-Mobile 2,235 1.0% 9.7 Years Current % Leased 93.4%* Pacific Dental 3,200 1.4% 9.5 Years Great Clips 1,050 0.5% 4.5 Years Sub Zero Ice Cream 1,400 0.6% 4.8 Years Pro-Forma Occupancy 100% Pholicious 1,260 0.5% 4.5 Years Pending - Hand & Stone 2,700 1.2% 6.5 Years Traffic Count: West Lake Houston Parkway: 36,873 VPD Sally Beauty 1,400 0.6% 4.5 Years Wild Birds Unlimited 1,733 0.8% 4.7 Years Kingwood Drive: 64,248 VPD Salata 2,800 1.2% 9.5 Years

Property Dashboard Orange Theory 3,010 1.3% 4.5 Years Pending - Sherwin Williams 4,500 2.0% 9.6 Years *Inclusive of all pending deals in various stages Pending - Old Republic Title 4,544 2.0% 4.7 Years Pending - Stretch Zone 1,260 0.5% 4.5 Years Pending - Smart Financial 2,250 1.0% 9.5 Years Gadget MD 1,200 0.5% 4.5 Years Torchy's Tacos 4,500 2.0% 9.4 Years Pending - Verizon 3,000 1.3% 4.6 Years Twin Liquors 3,500 1.5% 9.6 Years FINANCIAL SUMMARY Mama Fu's Asian House 2,203 1.0% 9.7 Years Pending - Starbucks 2,228 1.0% 9.7 Years Pending - Mod Pizza 2,535 1.1% 9.7 Years Pro-Forma NOI $5,943,711 Potbelly's 2,400 1.0% 9.7 Years Coco Crepes 2,400 1.0% 9.8 Years Wtd. Average In Place Rent $26.63 Vacant 6,060 2.6% 9.8 Years Vacant 3,223 2.4% 4.5 Years Wtd. Average Remaining Lease Term 14.0 Years Vacant 2,000 0.9% 4.8 Years Vacant 2,330 1.0% 9.8 Years Rollover Summary Vacant 1,590 0.7% 4.5 Years PAD SITES Pollo Loco 2,909 0.0% 19.8 Years Within 3 Years of Operation 0.0% Whataburger 3,580 0.0% 14.8 Years Raising Canes 3,585 0.0% 14.7 Years Within 5 Years of Operation 12.1% Pending - Freddy's 3,400 0.0% 14.8 Years Total Vacant 15,203 7.1% Total Leased 215,006 93.4% 14.0 Years Total Property Size 230,209 100.0%

NOI GRAPH TENANT BREAKDOWN LEASE EXPIRATION

$7,000,000 160,000 100.0% $6,800,000 SF Expiring Cumulative % 140,000 90.0% $6,600,000 23% 80.0% 120,000 $6,400,000 53,800 SF 70.0%

$6,200,000 % 46% 100,000 60.0% $6,000,000 7% 105,628 SF 80,000 50.0% $5,800,000 2.13% 10 Year CAGR 15,165 SF $5,600,000 40.0% 60,000 Cumulative Square Feet (SF) $5,400,000 30.0% 24% 40,000 $5,200,000 20.0% 53,887 SF $5,000,000 20,000 10.0% Year 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 10 Local Regional National H-E-B 0 0.0% Jun-18 Jun-19 Jun-20 Jun-21 Jun-22 Jun-23 Jun-24 Jun-25 Jun-26 Jun-27 Jun-28 May-30+

2 3 RARE OPPORTUNITY Main Street Kingwood offers investors a newly constructed retail center that includes an enviable tenant lineup and a location within one of the top suburbs in Houston. The Property is at “main & main” in the Kingwood suburb of northwest Houston, where there are currently 81,000 residents living within a three mile radius with an average household income of over $134,000. Furthermore, the Property is anchored by local grocer HEB and healthcare provider Memorial Hermann, two household names in Houston that are among the largest employers in the city. • Exciting retailers with urbanization on all sides • Barriers to entry in the Kingwood market

Investment Highlights • Anchor tenant HEB relocating from adjacent center – established customer base • Ample parking and multiple point of ingress and egress

4 BEST IN CLASS TENANCY SECURITY OF INCOME Anchored by HEB (grocer + fuel station) and Memorial Hermann, Main Street Kingwood The diversified, credit-worthy tenant base of Main Street Kingwood provides generous offers investors a strong lineup of proven national, regional and local tenants. The Property long-term cash flow for a long-term investor. Given its unmatched location and operational is expected to be 100% leased upon completion with some of the national tenants including efficiencies, the Property has demonstrated its ability to attract premium tenants. With a Starbucks, Potbelly’s, Great Clips and Verzon, with regional tenants such as Whataburger, weighted average remaining lease term of 14.0 years, the existing income stream remains Raising Cane’s, Torchy’s Tacos and Twin Liquors rounding out the impressive list. HEB is protected for the long term, providing a stable foundation for continued growth and the one of the largest private companies in the United States and the top food retailer in appreciation. In fact, 74% of the rent roll carries an investment-grade rating. The core, Texas with more than 370 stores located throughout Texas and Mexico. This location is an strategic nature of Main Street Kingwood’s location promotes the continued, long-term expansion for HEB from 45,000 SF across the street to this brand new, 100,628 SF super occupancy of the Property’s anchor tenants providing investors with an added layer of store. Memorial Hermann is the largest not-for-profit health system in southeast Texas with downside protection. 12 hospitals in the Houston area and dozens of Convenient Care Centers strategically • Strong, sustainable cash flow over the long term located throughout the Houston area. • Strong in-place fundamentals which are tops in the submarket • 74% investment grade credit • Pre-existing customer base • Enviable anchor tenancy with over 13 years of remaining lease term • Contractual rent increases providing income growth • Wide variety of dining options to serve the local community Investment Highlights

HEB MEMORIAL HERMANN • Private company with over 86,000 • Largest not-for-profit health system in employees, considered investment Southeast Texas with 5,500 affiliated grade credit by most investors physicians and 24,000 employees • Number one grocery chain in Texas • Investment grade credit rating from with 43 store locations throughout the both Moody’s (A1) and S&P (A+) Houston area • 16 hospitals and numerous specialty • Approximately $23 Billion in annual programs and services conveniently sales in 2015 located throughout the Greater • Relocation to Main Street Kingwood Houston area included 55,200 SF expansion

5 IDEAL H-E-B SPACING FOR NORTHEAST HOUSTON’S RESIDENTIAL POPULATION

♦ Ideal H-E-B spacing • North: No proximate locations 69 LIBERTY • South: 5 miles, 12-15 minutes Lake COUNTY • East/West: No proximate locations The Woodlands Houston MONTGOMERY State Park COUNTY ♦ Robust population growth forecast to continue over the next 10 years underpinned by strong quality of life from award winning schools, high-end housing inventory, and an array of golf courses and parks

♦ The northeast residential population is significantly underserved by retail product; approximately 30-40%

Investment Highlights less per resident than the Houston average HARRIS 5 Miles (12-15 Minute Drive) ♦ By 2025, 45,000 new residents are forecasted to COUNTY reside within the Humble area boundaries (Atascocita, George Bush Kingwood, Fall Creek, and others). Intercontinental Greenspoint Airport ♦ 25,000 of the new residents are expected to live along Lake West Lake Houston Parkway Generation Park Houston

69 NORTHEAST HOUSTON CORPORATE EXPANSION 11.5 Miles (30 Minute Drive)

♦ Generation Park: 4,000-acre master planned commercial Sheldon development with significant office, retail, and hotel Reservoir offerings ♦ Corporate Expansions: TechnipFMC, Stolt-Nielsen, Apache Industrial Services, San Jacinto College’s 57-acre campus, and Lone Star College’s Process Technology Center Energy ♦ ExxonMobil’s new headquarters with 10,000Corridor employees in north Houston is driving population growth and Westchase The Galleria CBD business expansion throughGeorge the northeast Bush Park Uptown District San Jacinto Bay AFFLUENT DEMOGRAPHICS

POPULATION 1 Mile 3 Mile 5 Mile 2021 Projection 9,106 70,428 153,017 Barbour’s Cut Terminal 2016 Estimate 8,576 66,037 140,045 2010 Census 7,987 61,067 123,204 FORT BEND 69 2000 Census 8,200 56,528 90,415 William Galveston COUNTY P. Hobby Growth 2016-2021 6.20% 6.60% 9.30% Airport Bay Growth 2010-2016 7.40% 8.10% 13.70% Bayport Growth 2000-2010 -2.60% 8.00% 36.50% Terminal 2016 Est. Avg Household Income $129,644 $134,479 $113,589

Clear 6 Lake

Smithers Lake GALVESTON COUNTY BRAZORIA COUNTY SUPERIOR RETAIL TRADE AREA BARRIERS TO ENTRY Positioned 27 miles north of downtown Houston, Kingwood is one of the largest, most Known as the “Livable Forest,” Kingwood is the largest master-planned community in established, and enduringly popular master-planned developments in the Houston MSA. Harris County and second-largest within the 10-county Houston metropolitan area. The The heavily wooded, 14,000-acre development has over 500 acres of private parks and “suburban infill” nature of this site which is at the intersection of the community’s two main nature preserves and 75 miles of greenbelt. The local area as a whole is well-known for thoroughfares and surrounded by Kingwood’s affluent neighborhoods, combined with a its forested beauty and high quality of life with exemplary schools and wide variety of lack of remaining developable land, allows investors to benefit from strong barriers to outdoor and water-based recreational opportunities near the 11,854-acre Lake Houston. It entry that will limit competition and drive tenant interest. has grown to house a diverse residential population of about 66,000 present-day and is a • No remaining developable retail land sites and strict zoning requirements limiting thriving commercial center with abundant retail and dining opportunities. competition • Direct access to Interstate 69 and FM 1960 • Unmatched visibility and access from the area’s two main thoroughfares • Proximate to George Bush Intercontinental Airport and the Port of Houston • Strong sustainable demand from one of the largest master-planned communities in the • 44% projected population growth in northeast Houston over the next 10 years state • Average household income of over $134,000 within 3 miles Investment Highlights

7 SITE PLAN

Leased

Available

Pending

Banfield Crepes CoCo Avail. Orange Nails of Theory

America WildBirds Solata Hand&Stone Beauty The Joint Stretch Subzero Zone Pho

Property Overview T-Mobile Great Pacific Clips Dental Mama Fu ’s Pizz a

HEB Mod Fuel Av ail.

Gadget MD Avail.

Financial

NAP

FLOOR 2ND

Old RepublicTitle

W E S TLA K EH O U S

Avail. Sherwin Liquor Twin Williams

Avail. Verizon

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8 LAKE HOUSTON

KINGWOOD DRIVE Property Overview

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N O T S U KINGWOOD PARK AND RIDE HO

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9 ADDITIONAL INFORMATION

DEBT FINANCING

WALLY REID Senior Managing Director | [email protected] | 713-852-3497

This Offering Memorandum has been prepared by HFF for use by a limited number of recipients. All information contained herein has been obtained from sources other than HFF, and neither Owner nor HFF, nor their respective equity holders, officers, employees and agents makes any representations or warranties, expressed or implied, as to the accuracy or completeness of the information contained herein. Further, the Offering Memorandum does not constitute a representation that no change in the business or affairs of the property or the Owner has occurred since the date of the preparation of the Offering Memorandum. All analysis and verification of the information contained in the Offering Memorandum is solely the responsibility of the recipient. HFF and Owner and their respective officers, directors, employees, equity holders and agents expressly disclaim any and all liability that may be based upon or relate to the use of the information contained in this Offering Memorandum.

Additional information and an opportunity to inspect the property will be made available upon written request to interested and qualified prospective investors.

Owner and HFF each expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers regarding the property and/or terminate discussions with any entity at any time with or without notice. Owner shall have no legal commitment or obligations to any recipient reviewing this Offering Memorandum or making an offer to purchase the property unless and until such offer is approved by Owner, a written agreement for the purchase of the property has been fully executed, delivered and approved by Owner and its legal counsel, and any obligations set by Owner thereunder have been satisfied or waived.

The recipient (“Recipient”) agrees that (a) the Offering Memorandum and its contents are confidential information, except for such information contained in the Offering Memorandum, which is a matter of public record, or is provided from sources available to the public (b) the Recipient, the Recipient’s employees, agents and consultants (collectively, the “need to know parties”) will hold and treat it in the strictest of confidence, and the Recipient and the need to know parties will not, directly or indirectly, disclose or permit anyone else to disclose its contents to any other person, firm, or entity without the prior written authorization of HFF and the Owner, and (c) the Recipient and the need to know parties will not use or permit to be used this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Owner or HFF or for any purpose other than use in considering whether to purchase the property. The Recipient and the need to know parties agree to keep this Offering Memorandum and all confidential information contained herein permanently confidential and further agree to use this Offering Memorandum for the purpose set forth above. If the Recipient has no interest in the property, or if in the future the Recipient or owner discontinue such negotiations, the Recipient will return this Offering Memorandum to HFF. 10