OFFERING MEMORANDUM PREMIER REDEVLOPMENT OPPORTUNITY 333 COLUMBIA STREET , TX 77007

RYAN KING 1455 WEST LOOP SOUTH, SUITE 700 HOUSTON, TX 77027 1 TABLE OF CONTENTS

Property Profile ...... 3 Property Photos ...... 4 Location Maps ...... 5-8 Investment Highlights...... 9-12 Houston Office Market Overview ...... 13 Leasing ...... 14 Construction ...... 15 Rent ...... 16 Sales ...... 17 Houston Economy ...... 18-19 Top Employers ...... 20 Disclaimer ...... 21 Information About Brokerage Services ...... 22

The information contained herein was obtained from sources believed reliable; however, Moody Rambin makes no guarantees, warranties or representations as to the completeness or 2 accuracy thereof. The presentation on this property is submitted subject to errors, omission, changes of price, or conditions, prior to sale or lease, or withdrawal without notice. PROPERTY CONTENTS PROFILE

Moody Rambin, on behalf of Ownership, is pleased to present the rare opportunity to acquire a premier redevelopment opportunity on ±26,400 square foot site in Houston, (“The Property”). The Property is surrounded by new residential construction, hotel, office, and offers unrivaled views across Houston. The site is located just off the Katy Freeway, providing quick and easy access to the Downtown Houston, Memorial Park, The Galleria, and White Oak Entertainment District. The site is located in a dense, highly sought afer trade area. The Property is an irreplaceable development opportunity that is well positioned to capitalize on the strength of Houston’s growing economy. OFFERING SUMMARY

Location: 333 Columbia Street Houston TX 77007 Year Built: 1968 Building SF: 9,338 Land SF: +/- 26,400 Land Acres: 0.606 Building Area: 9,338 SF Building Type: Warehouse - Metallic - 7,742 SF Commercial Bldg. - Mixed Use - 1,596 SF Price: Contact broker for pricing I-10 Traffic Count: +/- 213,621 Vehicles per day Zoning: The City of Houston has no zoning regulations Restrictions: Not subject to any use, height, or density restrictions Market: Houston Submarket: Katy Freeway West

Digital Image Source: Unsplash.com The information contained herein was obtained from sources believed reliable; however, Moody Rambin makes no guarantees, warranties or representations as to the completeness or accuracy thereof. The presentation on this property is submitted subject to errors, omission, changes of price, or conditions, prior to sale or lease, or withdrawal without notice. 3 PROPERTY PHOTOS

The information contained herein was obtained from sources believed reliable; however, Moody Rambin makes no guarantees, warranties or representations as to the completeness or 4 accuracy thereof. The presentation on this property is submitted subject to errors, omission, changes of price, or conditions, prior to sale or lease, or withdrawal without notice. LOCATION MAPS

The information contained herein was obtained from sources believed reliable; however, Moody Rambin makes no guarantees, warranties or representations as to the completeness or accuracy thereof. The presentation on this property is submitted subject to errors, omission, changes of price, or conditions, prior to sale or lease, or withdrawal without notice. 5 LOCATION MAPS

The information contained herein was obtained from sources believed reliable; however, Moody Rambin makes no guarantees, warranties or representations as to the completeness or 6 accuracy thereof. The presentation on this property is submitted subject to errors, omission, changes of price, or conditions, prior to sale or lease, or withdrawal without notice. LOCATION MAPS

Houston’s Flood Map

Source: Harris County Flood Control District The information contained herein was obtained from sources believed reliable; however, Moody Rambin makes no guarantees, warranties or representations as to the completeness or accuracy thereof. The presentation on this property is submitted subject to errors, omission, changes of price, or conditions, prior to sale or lease, or withdrawal without notice. LOCATION MAPS

The information contained herein was obtained from sources believed reliable; however, Moody Rambin makes no guarantees, warranties or representations as to the completeness or 8 accuracy thereof. The presentation on this property is submitted subject to errors, omission, changes of price, or conditions, prior to sale or lease, or withdrawal without notice. INVESTMENT HIGHLIGHTS

LOCATION • Short commute times to Houston’s largest employment centers, 4 minutes to Downtown, 13 minutes to the Galleria, 16 minutes to , and 20 minutes to the . • Within walking distance to the approximately 1,500 acre Memorial Park, one of the largest urban parks in the United States attracting over four million people each year. • Surrounded by high income earners with an average household income of over $110,706 within one mile. • The Property is located near the banks of the 160-acre Buffalo Bayou preserves a natural and popular setting in the inner-city of Houston. A critical urban green space extending upstream through downtown. • Close proximity to the most prestigious residential neighborhood in Houston, River Oaks, and is minutes away from Avenue, a popular entertainment district.

DEVELOPMENT OPPORTUNITY • Build into a rapidly growing and dense area with a projected 5.3% population growth rate over the next five years. • Continued high level of job creation, with year Courtnesy of Buffalo Bayou Partnership over year job growth adding 91,200 new jobs T-12 in July 2019. • Houston is the 4th largest city in the United States. It is a dynamic growing city, rich in culture and diversity. The Houston area boasts the 4th largest economy in the country and is one of the top 25 worldwide with major industries represented.

The information contained herein was obtained from sources believed reliable; however, Moody Rambin makes no guarantees, warranties or representations as to the completeness or accuracy thereof. The presentation on this property is submitted subject to errors, omission, changes of price, or conditions, prior to sale or lease, or withdrawal without notice. 109 BUFFALO BAYOU PARK

BUFFALO BAYOU PARK This premier redevelopment opportunity is located approximately 2.5 miles away from Buffalo Bayou Park. The Buffalo Bayou Partnership’s (“BBP”) 10-square mile stretch of the bayou corridor, also known as Buffalo Bayou Park, officially begins when Buffalo Bayou meets Shepard Drive. The bayou flows through Buffalo Bayou Park along Allen Parkway, through the northern part of downtown. The BBP recently completed a $58 million renovation. The improvements are aimed at making the Park more accessible, adding amenities, mend bayou water clarity and habitat, increase flood control, and generate more interest in the Park. BBP has raised and implemented more than $200 million dollars in improvements, spearheading award-winning capital projects.

The 160-acre greenspace features:

• Hike and bike trails • Public art • Dog park • Beautiful gardens • Creative nature play area • Jim Mozola Memorial Disc Golf Course (north bank immediately west • Paddle craft • Two visitor centers of Sabine Street)

Courtnesy of Buffalo Bayou Partnership

Source: Buffalo Bayou Partnership The information contained herein was obtained from sources believed reliable; however, Moody Rambin makes no guarantees, warranties or representations as to the completeness or 10 accuracy thereof. The presentation on this property is submitted subject to errors, omission, changes of price, or conditions, prior to sale or lease, or withdrawal without notice. MEMORIAL BAYOU PARK PARK

QUICK FACTS

4 MILLION 155 ACRES 1,466 Visitors Arboretum and Acres Annually Nature Center

$18 MILLION 30 MILES 65,000 raised for funding Trails for Biking Rounds of Golf Park Hiking, Running, Played Annually improvements and Walking

UNITED STATE PARK COMPARISON

A larger version of this map is available in the Document Center.

UNITED STATE PARK COMPARISON Arboretum Educational Classes Lockers & Showers Running & Walking Baseball & Softball Food Trucks & Dining Nature Center Soccer Botanical Gardens Football & Rugby Picnics & Events Swimming Croquet Golf Playgrounds Tennis Cycling & Mountain Biking Hiking Polo Weight Training

The information contained herein was obtained from sources believed reliable; however, Moody Rambin makes no guarantees, warranties or representations as to the completeness or accuracy thereof. The presentation on this property is submitted subject to errors, omission, changes of price, or conditions, prior to sale or lease, or withdrawal without notice. 11 AREA OVERVIEW

DEMOGRAPHICS LOCAL NEIGHBORHOODS

Population 1 Mile 3 Mile 5 Mile RIVER OAKS 2020 Total Population Est. 21,856 189,191 442,749 The Property is located near River Oaks, one of Houston’s 2025 Total Porpulation Est. 23,027 197,724 460,749 most desirable residential addresses, and the exclusive River Oaks Country Club. River Oaks is the city’s most Growth 2020 - 2025 5.36% 4.51% 4.03% prestigious and wealthiest residential enclave spanning 2020 Median HH Income $110,706 $94,098 $74,987 1,100 acres comprising 1,288 estates that average over Total Population 15,764 148,482 371,199 $1.2 million.

River Oaks Shopping Center

WASHINGTON AVENUE The Washington Avenue Corridor is an ultra-trendy, entertainment and restaurant district with more than 200 eateries, bars, and clubs along a three-mile stretch of SCHOOLS Washington Avenue. The Property is zoned for Houston Independent School District. The Texas Education Agency (TEA) rates schools and school districts on an A-F scale. Recognized is TEA’s second highest rating. Additionally, the Property is conveniently located nearby to St. Thomas High School (All Male), River Oaks Baptist (pre-K –8th), as well as several other respected private schools. HOUSTON HEIGHTS The Property is located in one of the most historic neighborhoods in Houston, The Heights, also known as “Greater Heights.” The heights is saturated with shopping centers, restaurants, nightlife spots, and parks and recreation. Heights has a population of over 44,000 residents.

The information contained herein was obtained from sources believed reliable; however, Moody Rambin makes no guarantees, warranties or representations as to the completeness or 12 accuracy thereof. The presentation on this property is submitted subject to errors, omission, changes of price, or conditions, prior to sale or lease, or withdrawal without notice. HOUSTON OVERVIEW OFFICE MARKET 1ST QUARTER 2020 A spate of move-outs in the first half of 2019 However, the new supply should satisfy key portended caution in Houston’s office sector occupiers that are driven by quality buildings as recovery, following a strong 2018 that saw a return part of their strategy to attract and retain talent to positive net absorption and positive rent growth in the midst of a tight national labor market. The in the wake of the oil downturn. Houston’s vacancy largest cluster of energy companies and the largest rate remains the highest among all U.S. metros medical center in the world should keep large employers in Houston for the foreseeable future, Houston’s significant space availability means even if growth moving forward is projected to be that landlords must continue to offer free rent slower than in the recent oil boom years. Meanwhile, and concessions to attract tenants. And the wave the planned TMC3 collaborative research campus of new supply that delivered over the past several and The Ion innovation hub in Midtown Houston years has caused rent growth to remain quite both offer the promise of a burgeoning tech scene. low by historical standards. The recent building boom has put pressure on older assets. As in other markets that experienced a large amount new construction this cycle, CoStar expects a wave of renovations as older assets try to compete.

The information contained herein was obtained from sources believed reliable; however, Moody Rambin makes no guarantees, warranties or representations as to the completeness or accuracy thereof. The presentation on this property is submitted subject to errors, omission, changes of price, or conditions, prior to sale or lease, or withdrawal without notice. 13 LEASING A return to hiring in Houston unfortunately has not Blvd. in Galleria/Uptown (BHP sublease), translated into broad-based gains in the office sector. Houston Methodist Hospital for over 100,000 Houston’s vacancy rate compressed from 16.7% SF 4800 Fournace Place (formerly owned by in 18Q2, before falling to 16% by 19Q1. However, Chevron) in Bellaire, and Sumitomo for nearly significant move-outs in the second half of the 70,000 SF at 1500 Post Oak Blvd. (BHP sublease). year have caused Houston’s vacancy rate to return Prior to the $38 billion merger of Occidental and to 16.6% by 19Q4, ushering in a sense of renewed Anadarko, Occidental had announced plans to caution. Net absorption amounted to about -400,000 move from Greenway Plaza to ConocoPhillips’ SF last quarter and -740,000 SF in 19Q2, representing former 1.4- million-SF campus at Woodcreek in a return to losses after three positive quarters. the Energy Corridor, which Occidental purchased Some of the largest move-outs last quarter included from ConocoPhillips in 2018. The move was set Southwestern Energy Company vacating 240,000 to begin in late 2019 and finish in early 2020. SF at 1000 Energy Tower - South in Springwoods However, following Occidental’s acquisition of Village, Constellation Energy Commodities The Woodlands-based Anadarko Petroleum, Group moving out of 85,000 SF at 4 Houston Occidental announced in 19Q3 that it would Center in Downtown Houston, and DuPont sell the Energy Corridor ConocoPhillips campus vacating more than 55,000 SF at 140 Cypress and remain at Greenway Plaza and in Anadarko’s Station Dr. in the FM 1960/I-45 North Submarket. headquarters in The Woodlands for the time being. Some of the largest move-ins last quarter included CoStar’s forecast calls for demand to pick up and coworking space/tech incubator The Cannon, average about 1.2 million SF per quarter over the occupying 120,000 SF at its build-to-suit in the next four quarters, which would be significantly Katy Freeway West Submarket, and Exterran Energy above Houston’s long-term average. And the Solutions moving into nearly 60,000 SF at 11000 forecast calls for Houston’s vacancy rate to compress Equity Dr. in the West Belt Submarket. Stewart to approximately 14.5% by 2024, which would be a Title also moved into 155,000 SF of BHP Billiton notable improvement. However, this rate would still sublease space at 1360 Post Oak in Four Oaks Place underperform the national average by approximately in June 2019. Houston recorded some significant 400 basis points. Downside risks to this forecasts leases last quarter, including Kiewitt Engineering include a weakening U.S. economy, lower-for-longer for 157,000 SF at Energy Center I in Katy Freeway oil prices, technological improvements in the West, Engie for 110,000 SF at 1360 Post Oak energy industry, reduced energy industry capital expenditures, and the national trend towards increasingly efficient office space utilization. Vacancy Rate By Star Rating

Source: CoStar Group The information contained herein was obtained from sources believed reliable; however, Moody Rambin makes no guarantees, warranties or representations as to the completeness or 14 accuracy thereof. The presentation on this property is submitted subject to errors, omission, changes of price, or conditions, prior to sale or lease, or withdrawal without notice. CONSTRUCTION Houston’s office supply pipeline is near the lowest it And Stonelake Capital Partners is under has been since the global financial crisis. The pause in construction with Park Place | River Oaks Tower the market’s normally frenetic pace of development in Post Oak Park. The 15-story, 200,000-SF office has limited the damage from weak demand. building is nearly 14% preleased, predominately However, it also underscores the crisis of confidence to anchor tenants Compass Real Estate and Charles investors and developers have about Houston. Schwab. Stonelake also decided to move its office Last quarter, Skanska’s 780,000-SF Bank of America to the building. The developer felt that it was the Tower (formerly Capitol Tower) delivered. The right time to deliver to the area a new, Class A, building is more than 85% leased to anchor luxury office building with first-class amenities. tenants Bank of America and Waste Management. Moreover, there were seven additional office/ The speculative 150,000-SF CityPlace 1 delivered mixed-use buildings in the 130,000-SF to 200,000- in Springwoods Village in 19Q2 and was 24% SF range under construction as of 19Q4. These leased as of 19Q4. And last quarter the Energy included: The Howard Hughes Corporation’s Corridor welcomed The Cannon, a 120,000- 180,000-SF build-to-suit for Alight Solutions in SF co-working and tech incubator space. The Woodlands; MetroNational’s 160,000-SF new Hines’ 1.1-million-SF Texas Tower is under spec building at Memorial City; Freeway Properties’ construction and set to open in 2021. Hines and 150,000-SF Katy Ranch Phase II in the Katy/ partner Ivanhoé Cambridge decided to build the Grand Parkway West Submarket; Moody National tower as a bet on Houston’s continued economic Companies’ 150,000-SF building at 9655 Katy recovery, the trend towards a flight to quality, and the Freeway in the Katy Freeway East Submarket; Lovett site’s prime location. The building is more than one- Commercial’s 150,000-SF Post Houston mixed-use third preleased. International law firm Vinson & Elkins redevelopment in Downtown Houston; Warmack signed a 16-year lease for the top seven floors of the Investments’ 135,000-SF Research Forest Lakeside building, encompassing 212,000 SF. Hines’ decision - Building 9 in The Woodlands; and Ancorian to move its global headquarters to the building also LLC’s 130,000-SF River Oaks Medical building in provided an added level of sponsor commitment to Highland Village. This demonstrates a clear appetite the asset. Insperity, Inc. is under construction with a for new construction and a flight to quality, 270,000-SF build-to-suit at its campus in Kingwood. despite an otherwise soft Houston office market.

Deliveries and Demolitions

Source: CoStar Group The information contained herein was obtained from sources believed reliable; however, Moody Rambin makes no guarantees, warranties or representations as to the completeness or accuracy thereof. The presentation on this property is submitted subject to errors, omission, changes of price, or conditions, prior to sale or lease, or withdrawal without notice. 15 RENT Houston’s office rents stabilized in 2018 after tenants, which has helped the submarket suffering losses in 2015 through 2017, the same years bounce back quicker from the oil downturn. that most markets were posting their strongest rent At the opposite end of the spectrum, the Southwest growth. Houston office rents are set to grow over 1% submarkets, Southwest/Hillcroft and Southwest by year end 2019 and continue their recovery into Beltway 8, experienced rent growth of about -3.5% the forecast, although rents are forecasted to grow and 3%, respectively. Both of these submarkets are by a modest 1% to 1.5% over the next five years. home to mostly older-generation assets and are Rent growth has varied across Houston’s submarkets. located in areas that are majority lower income, at a Rents in Katy Freeway West, the Energy Corridor, time when Houston’s major office trend is towards a and the adjacent Katy Freeway East grew by more flight to quality in the larger office submarkets, given than 3% in 2019, thanks to a spate of new deliveries significant office availability. The FM1960 submarkets, and renewed leasing activity. Midtown’s asking FM 1960/Champions, FM 1960/I-45 North, and FM rents also grew by more than 2.5%, thanks to the 1960/Hwy 249, also experienced rent growth of area’s rising profile and a handful of new deliveries. about -2.5%, -2%, and -1%, respectively, over the The NASA/Clear Lake Submarket’s rents also grew past 12 months. This is likely due to tenant move- by more than 2.5% last year. The submarket is outs related to past flooding, such as HPE moving home to a diverse array of aerospace, medical out of its former 74- acre campus near Texas State device manufacturing, healthcare, and government Highway 249 and Cypress Creek, as well as generally older stock and waning tenant demand in the area.

Market Rent Growth

Source: CoStar Group The information contained herein was obtained from sources believed reliable; however, Moody Rambin makes no guarantees, warranties or representations as to the completeness or 16 accuracy thereof. The presentation on this property is submitted subject to errors, omission, changes of price, or conditions, prior to sale or lease, or withdrawal without notice. SALES Houston Office Houston’s recorded trailing 12-month The property was 97% leased as of last office transaction volume totaled $1.8 billion with quarter, with anchor tenants including more than 660 deals that traded as of last quarter. Merrill Lynch, Sunnova Energy Corp., Houston cap rates tend to be a bit higher than REALEC Technologies, Mitsubishi, and Koch. the national average, typical of a large, affordable And in April 2019, a joint venture between Sunbelt market with little zoning and abundant Houstonbased Hicks Ventures and - land. And a large amount of value-add portfolio based Taconic Capital Advisors acquired the deals traded in 2017, as Houston was just 340,000-SF building at 1177 West Loop in Post beginning to recover from the oil downturn. Oak Park from Dallas-based Spire Realty Group for Generally, Houston trades right in line with an undisclosed price. CoStar estimates that they the national average, though cap rates paid around $78.5 million at a 6.4% cap rate. At have drifted higher since the energy slump. the time of sale, the property was 73% occupied. Skanska is under contract to sell the 35-story Bank In October, New York-based Cerberus Capital of America Tower in downtown Houston at 800 and Hines acquired the iconic, 1.7 million-SF JP Capital St. to CalSTRS for what could set a record Morgan and the adjacent 430,000- price in Houston for a nonmedical office building. SF building at 601 Travis. Washington, D.C.-based According to people with knowledge of the deal, Hariri Interests sold the assets for an estimated it could sell for between $530/SF and $600/SF. $627 million or $304 per SF at a 6.9% cap. While the buildings were approximately 85% leased as A sale that received notable attention last year was of last quarter, there is significant roll coming up. Houston-based Lionstone Partners’ acquisition of a majority stake of the 5 Star, 227,000-SF CityCentre Five It was also recently announced that Hines and office building from partner Midway Companies, also CalPERS are listing 609 Main at Texas for sale, based in Houston. CoStar estimates that the building according to Cushman and Wakefield, the was valued at $93 million, or $410/SF, and sold at a real estate brokerage listing the property. The 5.7% cap. The property was 94% leased at the time 1.1-million-SF tower was completed in 2017 and is of sale. Major tenants include Amazon Web Services, home to tenants such as United Airlines, Kirkland Par Pacific, Life Time Work, and Slalom Consulting. & Ellis, Goldman Sachs, McKinsey & Co. and the Royal Bank of Canada. It is 94% leased. This is the Among other large transactions last year, in most significant non-medical trophy office asset June, Atlanta-based Cousins Properties acquired to be listed for sale in Houston since 2015, when Dallasbased TIER REIT in a trade valued at more than a Spanish entity, Masaveu Real Estate, acquired $2 billion and included 24 office properties across BBVA Plaza in the Galleria/Uptown area for $527/SF. Texas, , , and . The trade included the two-property, 835,000-SF Briar Additionally, according to CBRE, the broker of Lake Plaza in Westchase, which marked a return for record, Occidental Petroleum will officially list Cousins Properties to the Houston market after the for sale the 1.3- million-SF, 17-building former company famously sold its entire Houston portfolio ConocoPhillips campus that it acquired in January at the bottom of the oil downturn to Orlando- 2019 for approximately $90 million ($73/SF). This based Parkway Properties. The two Houston follows its acquisition of Anadarko Petroleum, which properties traded for a combined allocated value of closed in August 2019. Occidental decided following approximately $223 million ($226/SF). Comments by the acquisition that its space needs had outgrown Cousins in the wake of the announced transaction the former ConocoPhillips campus and that the indicated a continued bearishness towards the combined company would remain at Greenway Houston office market. In May 2019, Plaza and in The Woodlands for the time being. based Stockdale Acquisitions LLC acquired the CoStar estimates that the average sales price per SF 430,000-SF 20 Greenway Plaza from Des Moines, for Houston fell by about 1.2% over the past year, based Principal Real Estate Investors for an and cap rates increased 20 basis points. Rising cap undisclosed price. CoStar estimates that it closed rates and slowing rent growth may continue to for $92 million, or $212/SF, at a 7.2% cap rate. limit value gains over the course of the forecast.

Source: CoStar Group The information contained herein was obtained from sources believed reliable; however, Moody Rambin makes no guarantees, warranties or representations as to the completeness or accuracy thereof. The presentation on this property is submitted subject to errors, omission, changes of price, or conditions, prior to sale or lease, or withdrawal without notice. 17 HOUSTON ECONOMY

ABOUT HOUSTON

Houston exudes both a cosmopolitan and down-home vibe. The style-savvy residents of the country’s fourth- largest city and third-largest county know that there’s no place quite like Houston. With more than 2.2 million residents, and a Metropolitan Statistical Area that includes 9 counties, Houston attracts visitors and transplants with a wonderful mix of world-class arts, booming business, pro sports and award-winning cuisine.

Houston’s economy has a broad industrial base in energy, manufacturing, aeronautics, and transportation. It is also leading in health care sectors and building oil field equipment. Aeronautic research is unsurpassed as NASA headquarters, the Johnson Space Center and the site of Mission Control all call Houston their home. Texas Medical Center remains the largest in the world with 47 highly lauded research and treatment institutions. Known as the “Energy Capital of the World” for its global energy presence, Houston also holds over 5,000 energy related firms. With more than 4.4 million square feet of convention space, metro Houston ranks at the top of American cities when comparing convention venues.

WHY INVEST IN HOUSTON?

• Houston continuously ranks among the top cities on many lists. In 2015, Houston topped Forbes’ list of America’s fastest growing cities and in 2014 was ranked number 4. Contributing to these rankings is its booming energy sector, medical tech firms, and on-fire economy. Houston has a distinctly favorable business climate. The region benefits from a skilled workforce, world-class infrastructure and transportation system, and a pro-business environment that stimulates business growth. • Houston is the most populous city in Texas and the fourth-most populous city in the United States with a population of more than 2 million residents. • The Houston metro area has led the top five major US metro areas in job recovery since December 2011. Houston is the number one city for job creation and stands apart as the most powerful job engine in the country. • Houston is the center of America’s lucrative oil and gas industry. Not only is Houston the home of corporations like Conoco Phillips and Marathon, it’s the center of the petrochemical industry, close to Texas oil fields, and close to Latin America. Almost every major national and international energy company makes Houston their first or secondary headquarters. • Houston has a perfect mid-country location and located on the Gulf of Mexico connects the city to the nation as well as the rest of the world. The port of Houston is a 25-mile-long complex of diversified public and private facilities. It is the busiest port in the United States in terms of foreign tonnage, second-busiest in the United States in terms of overall tonnage, and thirteenth-busiest in the world.

The information contained herein was obtained from sources believed reliable; however, Moody Rambin makes no guarantees, warranties or representations as to the completeness or 18 accuracy thereof. The presentation on this property is submitted subject to errors, omission, changes of price, or conditions, prior to sale or lease, or withdrawal without notice. HOUSTON ECONOMY Houston rebounded from the energy slump and the ravages of Hurricane Harvey to add some 73,300 jobs in 2018. Though this property was unscathed during Tax Day and Memorial Day rain events, it did encounter 4-6” of rising water during Hurricane Harvey. This is significantly less than other parts of Houston and the property has gone through a full renovation process. This was a bit lower than the city’s annual pace of job gains during the boom years but still ranked Houston in the top three U.S. metros for new job gains last year, along with New York and Dallas-Fort Worth. These gains, while average for the metro, suggest that Houston’s economy can thrive even with lower oil prices than were experienced at the height of the oil boom. This optimism is tempered by oil prices languishing in the low-$50s/ barrel as of June 2019, mostly due to domestic oversupply. About half of Houston’s gross metropolitan product is tied to the strength of the national economy, and about half is tied to the strength of the energy industry. Growth in the healthcare industry remains strong, as Houston is home to the Texas Medical Center, the largest medical complex in the world. The healthcare sector is also growing in line with Houston’s strong population growth. Between July 2017 and July 2018, Houston added 94,417 new residents, ranking it third behind Dallas-Fort Worth and Phoenix. Moreover, the diversified professional and business services sector continues to add jobs, as does the manufacturing sector, particularly in fabricated metals and petrochemicals. CoStar’s Base Case, which incorporates Oxford Economics’ Moderate Upside scenario, assumes that Houston will add approximately 70,000 jobs this year, then slow to about 50,000 jobs thereafter. The Greater Houston Partnership forecasts the nine-county metro Houston area will create 71,000 jobs in ’19. Employment will grow in all sectors, with health care, construction and administrative services turning in the strongest performances. Energy will continue to recover. Manufacturing output will grow. Construction activity will pick up. Retail will benefit from population growth. Professional services will find new clients throughout the region. And health care will recapture its crown as the region’s leading job generator. The year should end with 3.2 million payroll jobs, a net increase of more than 600,000 over the past 10 years. Only New York, Los Angeles and Dallas have created more jobs over the same period. Houston has emerged from one of the worst energy downturns of the past 35 years. Oil prices fell by 75 percent, the rig count by 80 percent and exploration budgets by 62 percent. One in every four energy jobs in Houston was lost. Job losses in energy were offset by job gains elsewhere. Maybe the jobs didn’t pay as well as the ones lost, but they did offer opportunities for employment. Home sales plateaued but never plummeted. Weaker demand helped slow the escalation of home values that had priced many would-be buyers out of the market during the energy boom. The plunge in oil prices didn’t precipitate a collapse in commercial real estate. However, some office building owners found themselves with too much empty space on their hands and few good options for filling it. The Federal Deposit Insurance Corporation didn’t step in to take over any insolvent Houston banks, unlike the ’80s, when all the city’s largest banks failed. And the local unemployment rate rose above the national rate, but it never reached the levels of the Great Recession and stayed well below the peak experienced during the ’80s.

Source: Greater Houston Partnership The information contained herein was obtained from sources believed reliable; however, Moody Rambin makes no guarantees, warranties or representations as to the completeness or accuracy thereof. The presentation on this property is submitted subject to errors, omission, changes of price, or conditions, prior to sale or lease, or withdrawal without notice. 19 TOP EMPLOYERS

Once dominated by oil-related jobs, Houston’s economy has diversified as new, core industries join energy in the regional employment mix. According to calculations made by the Greater Houston Partnership based on the University of Houston’s Institute of Regional Forecasting data these diversifying sectors account for 71 percent of the net job growth since 1986.

The Greater Houston Partnership and Workforce Solutions implemented an innovative approach to meet employers’ skill shortages through an initiative to align the region’s education and training offerings with employers’ immediate needs. A major element of this initiative has focused on the shortage of registered nurses in the Gulf Coast region. The coalition’s Health Services Steering Committee was recognized with a national award in 2001 as an exemplary partnership. Also, the Texas Workforce Commission awarded the Workforce Solutions a grant to expand the model program at the University of Texas Medical Branch at Galveston for upgrading staff to registered nurse positions, including six area hospitals that chose to participate. That initiative resulted in a 20 percent increase in local nursing school enrollment and a corresponding increase in the number of nursing school facilities.

Nationally Ranked Quality of Living

• If Houston were a country, it would rank as the 23rd largest economy in the world - exceeding Nigeria’s and Sweden’s GDP. • The Port of Houston Ranks first in U.S. foreign tonnage. • Living costs in the Houston region are 20.8 percent below the average for major metropolitan areas. • Parks represent 14.4 percent of the city’s land area.

# Employer # of Employees 1 H-E-B 20,000 + 2 Houston Methodist 20,000 + 3 Memorial Hermann 20,000 + 4 UT MD Anderson 20,000 + 5 Walmart 20,000 + 6 ExxonMobil 10,000 - 19,999 7 HCA 10,000 - 19,999 8 Kroger 10,000 - 19,999 9 Landry’s 10,000 - 19,999 10 Schlumberger 10,000 - 19,999

Source: Greater Houston Partnership The information contained herein was obtained from sources believed reliable; however, Moody Rambin makes no guarantees, warranties or representations as to the completeness or 20 accuracy thereof. The presentation on this property is submitted subject to errors, omission, changes of price, or conditions, prior to sale or lease, or withdrawal without notice. DISCLAIMER

All materials and information received or derived from Moody Rambin its directors, officers, agents, advisors, affiliates and/or any third party sources are provided without representation or warranty as to completeness, veracity, or accuracy, condition of the EMPLOYERS property, compliance or lack of compliance with applicable governmental requirements, developability or suitability, financial per- formance of the property, projected financial performance of the property for any party’s intended use or any and all other matters.

Neither Moody Rambin its directors, officers, agents, advisors, or affiliates makes any representation or warranty, express or implied, as to accuracy or completeness of the any materials or information provided, derived, or received. Materials and information from any source, whether written or verbal, that may be furnished for review are not a substitute for a party’s active conduct of its own dueINVESTMENT diligence to determine CRITERIAthese and other matters of significance to such party. Moody Rambin will not investigate or verify any such matters or conduct due diligence for a party unless otherwise agreed in writing.

EACHThe PARTY building SHALL is CONDUCT conveniently ITS OWN located INDEPENDENT in the North INVESTIGATION District ANDand DUEis 10 DILIGENCE. minutes from George Bush Intercontinental Airport. The building Anyhas party easy contemplating access to or Beltway under contract 8, the orHardy in escrow Toll forRoad, a transaction Interstate is urged 45 to verify all information and to conduct their ownand inspections Interstate and 69. investigations including through appropriate third party independent professionals selected by such party. All financial data should be verified by the party including by obtaining and reading applicable documents and reports and con- sultingVantage appropriate Parkway independent Business professionals. Center is strategicallyMoody Rambin located makes no in warranties North and/or representations regarding the veracity, completeness,Houston betweenor relevance Interstate of any financial 45 and data 69 or assumptions.just North ofMoody Beltway Rambin 8. does not serve as a financial advisor to any party regardingConstructed any proposed in 1980, transaction. Vantage All Parkway data and assumptionsBusiness Center regarding is located financial performance, including that used for financial modelingin the purposes, North Corridor may differ Industrial from actual submarket. data or performance. The property Any estimates consist of market rents and/or projected rents that may be providedof 4.78 to a acres party withdo not three necessarily buildings mean thattotaling rents can51,462 be established square feet at or of increased to that level. Parties must evaluate any applicablepristine contractual flex space and governmentalalong with limitations217 parking as well spaces. as market The conditions,vacancy property factors and other issues in order to deter- mineis rents100% from occupied or for the byproperty. four tenants which consist of National and local tenants with below market rents. This is a great value –add Legalopportunity questions should for an be Investor discussed to by bring the party rates with to anmarket. attorney. Tax questions should be discussed by the party with a certi- fied public accountant or tax attorney. Title questions should be discussed by the party with a title officer or attorney. Questions regarding the condition of the property and whether the property complies with applicable governmental requirements should be discussed by the party with appropriate engineers, architects, contractors, other consultants and governmental agencies. All properties and services are marketed by Moody Rambin in compliance with all applicable fair housing and equal opportunity laws.

The information contained herein was obtained from sources believed reliable; however, Moody Rambin makes no guarantees, warranties or representations as to the completeness or accuracy thereof. The presentation on this property is submitted subject to errors, omission, changes of price, or conditions, prior to sale or lease, or withdrawal without notice. 21 OFFERING SUMMARY

The information contained herein was obtained from sources believed reliable; however, Moody Rambin makes no guarantees, warranties or representations as to the completeness or accuracy thereof. The presentation on this property is submitted subject to errors, omission, changes of price, or conditions, prior to sale or lease, or withdrawal without notice. 22 THREE THREE THREE COLUMBIA STREET 333 COLUMBIA STREET HOUSTON, TX 77079

RYAN KING

713.773.5533 [email protected] 1455 WEST LOOP SOUTH, SUITE 700 HOUSTON, TX 77007

23 Digital Image Source: Unsplash.com