BAYTOWN VILLAGE SHOPPING CENTER DOCKERS KROGER SPEC’S SHOGUN CHICK-FIL-A LOWES WALMART SEARS ACADEMY SPORTS OLD NAVY SPORT CLIPS CONN’S CHPOTLE BBVA COMPASS PIZZA HUT OFFICE DEPOT DOMINO’S T-MOBILE CHASE BANK TEXAS ROADHOUSE FIREHOUSE SUBS PETCO WINGSTOP FIVE GUYS OLIVE GARDEN CARL’S JR TACO BELL MATTRESS ONE LANE BRYANT CRICKET WIRELESS WENDY’S DAVITA DIALYSIS BUFFALO WILD WINGS FAMOUS FOOTWEAR JC PENNEY MATTRESS FIRM MACY’S RADIO SHACK SPRINT IH-10 | EAST FREEWAY

THE HOME DEPOT WEST CEADAR BAYOU LYNCHBURG RD

GARTH RD | 38.143 VPD

Baytown Village Shopping Center BEST BUY

TARGET

RICELAND RD BAYTOWN VILLAGE SHOPPING CENTER

INVESTMENT HIGHLIGHTS • 95% Leased Power Center Located in the Explosive Area of Baytown • Quality Tenancy | Outstanding Mix of National and Regional Tenants | Big Box National Retailers Wal-Mart, Best Buy, Home Depot, and Target in the Immediate Area • Superior Location and Accessibility in Power Corridor| Located in Baytown’s Most Desirable Residential Area with Prominent Frontage and Visibility on Garth Road | Five Miles from Baytown’s Largest Employer - ExxonMobil • Outstanding Tenant Retention History | 5-year Average Occupancy of 100% and 10-year Average Occupancy of 96%, Outpacing the Submarket Occupancy of 92.7% • Stabilized Asset with Upside | Long Term Contractual Rent from Anchor Tenants Ross Dress for Less and Hobby Lobby with Mark-to-Market Opportunity in Rolling Inline Space at Below Market Rents • Excellent Demographics | Since 2000, the Surrounding Area Experienced Growth in Excess of 75% Within a One-Mile Radius | Average Household Incomes within a Five-Mile Radius are Over $67,000 • Thriving Employment Center Home to Houston’s Booming Petrochemical Industry | $60 Billion in Construction to Refineries and Chemical Plants | Largest Petroleum and Petrochemical Complex in the With Some of the World’s Largest Corporations

3 BAYTOWN VILLAGE SHOPPING CENTER

ADDRESS: 4553 Garth Road Baytown, TX 77521

LOCATION: NWC Riceland Road and Garth Road

YEAR BUILT: 1994

PROPERTY SIZE: ±105,133 SF

LAND AREA: ±8.68 Acres

OCCUPANCY: 95%

PARKING AREA: 536 Spaces (5.10/1,000)

TRAFFIC COUNTS: 29,625 VPD at Garth Road & Riceland Road 38.143 VPD at Garth Road and W. Cedar Bayou Lynch

4 BAYTOWN VILLAGE SHOPPING CENTER

SITE PLAN

PAPA JOHNS SPEC’S RADIO SHACK OLD NAVY FRENCHY’S CHICKEN OFFICE DEPOT PETCO LANE BRYANT

DaVita DAVITA DIALYSIS Dialysis FAMOUS FOOTWEAR

Spec’s Sprint

Vitamin Shoppe Hibbet Sports Mattress Anna’s Linens Firm

Petco

The Children’s Place

NStyle

Rue21

Catherine’s Lane Bryant Radioshack

Old Navy Papa H ROAD John’s GA RT

Of‡ce Depot

Famous Footwear

Starbucks

Amegy Bank ATM Hobby Lobby 63,328

Ross Dress for Less 30,108 SF Florence Furniture 6,510 SF Jason’s Mattress Deli Firm

RICELAND ROAD

MARBLE SLAB VITAMIN SHOP STARBUCKS SPRINT

5 BAYTOWN VILLAGE SHOPPING CENTER HighlandSHOPPING CENTERKnolls

TENANT PROFILES

ROSS DRESS FOR LESS Tenant: Ross Dress For Less Parent Company: N/A Square Feet: 30,108 Public/Private: Public : NYSE: ROST 2015 YE Revenue: $11.1 Billion S&P Rating: A- Website: www.rossstores.com

Ross Stores, Inc. is an S&P 500, Fortune 500 and 100 (ROST) company head- quartered in Dublin, California, with fiscal 2015 revenues of $11.1 billion. The Company operates Ross Dress for Less® (Ross), the largest off-price apparel and home fashion chain in the United States with 1,259 locations in 33 states, the District of Columbia and as of August 1, 2015. Ross offers first-quality, in-season, name brand and design- er apparel, accessories, footwear and home fashions for the entire family at savings of 20% to 60% off department and specialty store regular prices every day. The Company also operates 165 dd’s DISCOUNTS® in 15 states as of August 1, 2015 that feature a more moderately-priced assortment of first-quality, in-season, name brand apparel, accessories, footwear and home fashions for the entire family at savings of 20% to 70% off moderate department and discount store regular prices every day.

HOBBY LOBBY Tenant: Hobby Lobby Parent Company: N/A Square Feet: 63,328 Public/Private: Private Ticker Symbol: N/A 2013 YE Revenue: $3.4 Billion S&P Rating: N/A Website: www.hobbylobby.com

Hobby Lobby operates 600-plus stores in about 40 states and sells arts and crafts supplies, baskets, beads, candles, frames, home-decorating accessories, and silk flowers. It also has operations in China, Hong Kong, and the Philippines, and it is the #3 craft and fabric retailer (behind Michaels Stores and Jo-Ann Stores). Sister compa- nies include: Mardel, a seller of Christian and educational products; and Hemispheres, a supplier of home furnishings and other merchandise to Hobby Lobby stores. CEO David Green, who owns the company, founded Hobby Lobby in 1972 and operates it according to biblical principles, including closing shop on Sunday. The company is listed in Forbes and Fortune’s list of Largest Private Companies.

6 BAYTOWN VILLAGE SHOPPING CENTER

LOCATION SUMMARY SUBMARKET OVERVIEW

Baytown Village Shopping Center has an Total Percent Percent Total Net Sq. Ft. Sq. Ft. Total Average Submarket Rentable Occupied Leased Absorption Under Delivered Deliveries NNN Asking excellent location in East Houston in the Sq. Ft. Overall Overall T-12 Mo. Construction 4Q 2015 T-12 Mo. Rental Rate city of Baytown, which is considered one Houston 321,434,295 94.5% 94.9% 3,320,113 2,481,117 602,528 2,682,192 $15.20 of the communities of Bay Area Houston. Overall The Bay Area is arguably Houston’s premier outlying region, consisting of East 12,953,163 92.7% 92.7% (40,237) 10,442 10,000 18,691 $12.92 300 square miles of prime employment, Power 25,703,712 96.1% 96.1% 6,061 1,117,386 0 5,500 $15.41 countless shopping centers, and Centers innumerable outdoor and water-based recreational opportunities bordered by beautiful Galveston Bay and the Gulf of Mexico. The East’s robust economy fueled by the petrochemical industry is running in high gear, The local economic base is robust and diverse, comprised of more than 12,500 with strong population growth, rising consumer retail sales volumes, and the return of businesses including a large number of manufacturing, aerospace, engineering, residential development providing an increasingly favorable setting for retailing and industrial, medical, and biomedical companies and a workforce of more than 188,000. retail real estate. According to CoStar Inc., total retail inventory in the East submarket Significant growth in population and tourism in recent years has prompted continued area totaled 13.0 msf in 541 buildings, as of the end of fourth quarter 2015. Developers commercial development and expansion activities across the area. Baytown is are cautious and new retail centers are planned strategically and based on long-term the largest city in Bay Area Houston and the third largest in the Houston MSA with area growth. Moreover, given the East Submarket’s existing stock of over 13.0 million 81,151 residents. It is approximately 24 miles east of Downtown Houston. Baytown is square feet, the deliveries of 18,691 square feet over the past 12 months pose no threat a prosperous industrial community next to the Houston Ship Channel with a healthy to the area’s retail market fundamentals. In fourth-quarter 2015, only 10,000 square tax base provided by multi-national corporations such as Bayer Corporation, Chevron feet of retail space was delivered to the market, boding well for existing properties in Phillips Chemical Company, and ExxonMobil. the market such as Baytown Village Shopping Center. As developers proceed with caution in breaking ground on new projects, Baytown retail has settled into a stable Baytown Village Shopping Center is located in Baytown’s most desirable residential occupancy model. The East submarket occupancy has remained stable historically, area with prominent frontage and visibility on Garth road, a primary local thoroughfare. averaging over 91% over the past ten years, finishing at 92.7% in Q4 2015. Given the The Property is within five minutes of Baytown’s largest employer, ExxonMobil, its explosive employment and economic growth of Baytown, the area has seen a steady regional medical district anchored by the San Jacinto Methodist Hospital, in its power rise in rental rates throughout the years, with a 12% increase in rental rates over the last retail corridor with abundant national grocers and Big Box retailers. 5 years. Since the first quarter of 2015 rents of $12.33/sf, rents have gone up $0.59/sf to $12.92 in fourth-quarter 2015, showing a 4.8% increase. With over 75% growth in population within a 1-mile radius since 2000, reaps the benefits from a densely populated trade area with continuing growth and expansion. As of April 2016, there are an estimated 109,072 residents who live within a five-mile radius of the property. Also within a five-mile radius, the area also boasts an average household income of over $67,000 per year. In addition, the area is projected to grow by more than 12% over the next five years.

7 BAYTOWN VILLAGE SHOPPING CENTER

BAYTOWN ECONOMIC OVERVIEW

GROWTH AND DEMOGRAPHICS A flood of construction workers is credited with boosting sales tax revenue in the city even From 1990 to 2010, population in the area bounded by Interstates 10 and 45 east of Beltway 8 as consumer spending falls heavily in cities, like Houston, with economies closely tied to the grew by about 100,000. The area is expected to add 174,000 people over the next 25 years, a oil industry. While Houston took a 7.5 percent hit in March, the state comptroller last week 36 percent growth rate. During the same period, the region is expected to add 67,000 jobs, a announced that in Baytown, sales tax revenue was up 9.6 percent over the same month last 29 percent growth rate. year and up 5.6 percent thus far in 2016.

DEMOGRAPHICS In the past five years, Baytown has seen a 36 percent increase in home sales and a 50 percent Description 1 Mile Radius 3 Mile Radius 5 Mile Radius spike in the median sales price, to $145,000, according to the Houston Association of Realtors. Population Whether the east side emerges with a permanent makeover will depend on what happens after 2021 Projection 8,452 62,511 109,072 2016 Estimate 7,524 57,586 100,952 the plant construction wraps and thousands of temporary workers pack up for the next job site. 2010 Census 6,149 51,265 90,666 2000 Census 4,006 42,958 77,873 SIGNIFICANT CAPITAL INVESTMENT AND DEVELOPMENTS Growth 2016 - 2021 12.3% 8.6% 8.0% The multibillion-dollar petrochemicals boom injects new life into Baytown. Low oil prices Growth 2010 - 2016 22.4% 12.3% 11.3% dragging down the rest of Houston are feeding a $50 billion to $60 billion construction burst at Growth 2000 - 2010 53.5% 19.3% 16.4% 2016 Est. Median Age 37 33 33 east-side refineries and chemical plants now flush with cheap natural gas and oil - feedstock for 2016 Est. Average Age 39 35 35 plastics and other products they make. Developers are building houses, apartments and stores Households from the ground up for the first time in years. 2021 Projection 2,020 15,426 27,554 2016 Estimate 1,777 14,159 25,404 Wal-Mart and Kroger have expanded, and other grocers are interested. Baytown will have 2010 Census 1,413 12,537 22,695 doubled its grocery retail space in the span of about a year, Davis said. In addition to Kroger 2000 Census 955 10,966 20,098 Marketplace, which replaces an existing Garth Road store and opens this week, the chain will Growth 2016 - 2021 13.7% 8.9% 8.5% Growth 2010 - 2016 25.8% 12.9% 11.9% replace a second location in the city with a bigger store expected to create 150 jobs. Growth 2000 - 2010 48.0% 14.3% 12.9% Income In nearby Mont Belvieu, a joint venture with Fidelis and San Antonio-based H-E-B acquired 41 2016 Est. Average Household Income $66,331 $62,822 $67,369 acres with plans for a large retail development with an 84,000-square-foot H-E-B store. The 2016 Est. Median Household Income $49,550 $47,838 $52,952 developers hope to attract various retailers and hoteliers to an adjacent 30-acre tract. Housing Value 2016 Est. Median All Owner-Occupied Housing Value $161,465 $116,632 $122,209 Hunington Properties, traditionally a west Houston builder, is moving forward this summer with a “high-end” apartment complex in Baytown, although it shelved a more ambitious plan to create With over 75% growth in population within a 1-mile radius since 2000, reaps the benefits from a Baytown’s first mixed-use project with room for retail, apartments, hotels and office. densely populated trade area with continuing growth and expansion. As of April 2016, there are an estimated 109,072 residents who live within a five-mile radius of the property. Also within a Goose Creek Reserve and Goose Creek Landing, among the first new subdivisions in Baytown five-mile radius, the area also boasts an average household income of over $67,000 per year. In since 2008, have about 800 homes under construction, with 1,850 new single-family homes addition, the area is projected to grow by more than 12% over the next five years. planned over the next five years. BAYTOWN VILLAGE SHOPPING CENTER

BAYTOWN ECONOMIC OVERVIEW

EMPLOYMENT BAYTOWN’S LARGEST EMPLOYERS • ExxonMobil has started construction on a multi-billion dollar expansion to the complex that Baytown is a thriving employment center Employer Employees will employ about 10,000 construction workers, create 4,000 related jobs in nearby Houston and home to some of the world’s largest ExxonMobil 3,785 communities, and add 350 permanent positions in Baytown. corporations. Its primary economic driver is Goose Creek Consolidated ISD 3,012 • Property is 8.2 miles from Bayer Industrial Park, which spans 1,700 acres along Cedar the petrochemical industry. ExxonMobil is San Jacinto Methodist Hospital 1,687 Bayou at the Gulf of Mexico. There are 1,100 employees on site, and it is the largest Bayer Baytown’s largest employer and taxpayer. Bayer Corporation 1,100 MaterialScience manufacturing site in North America. Its Baytown site is the largest petroleum City of Baytown 800 and petrochemical complex in the United JSW Steel 800 • The Property is 8.8 miles from Chevron Phillips Chemical Cedar Bayou Plant, a 1,200-acre States. Bayer Industrial Park is the largest Chevron Phillips 685 site with 685 employees and approximately 300 contract workers on site. Chevron Phillips Bayer MaterialScience manufacturing site Lee College 600 Chemical is building a new ethane cracker facility, the first in the United States in this decade, in North America. Cedar Crossing Industrial Walmart (Distribution Center) 600 and it will be the size of 50 football fields when it comes online in 2017. The expansion at the Park is the world’s fifth largest industrial park Home Depot (Distribution Center) 325 Cedar Bayou Plant and Old Ocean facilities in Sweeny, Texas cumulatively will represent a Borusan Mannesmann Piep 250 and is the home to major regional warehouse $6 billion investment for Chevron Phillips and will create 10,000 construction jobs and 400 TMK IPSCO 245 and distribution centers for Home Depot permanent jobs in the Houston area. Additionally, the company plans to hire more than 500 Excel Logistics 200 and Walmart. The Cedar Bayou Chemical people a year during the next six years. Plant in Baytown is Chevron Phillips largest Flexsteel Pipeline Technologies 130 manufacturing site. Tapco International 100

The Property is within walking distance of the San Jacinto Methodist Hospital, the largest, acute- care medical facility in the area with 275 total beds and 1,687 medical professionals on staff. The hospital is ranked #10 in the Houston MSA and #20 in the state according the US News & World Report’s 2014 “Best Hospitals” report.

Baytown Village Shopping Center is 1.5 miles east of ExxonMobil’s Baytown campus and effectively Houston’s Ship Channel. ExxonMobil’s 3,400-acre campus is the largest petrochemical complex in the US. There are 3,785 total employees and an estimated 2,000 contract workers on-site daily at the refinery, two chemical plants, a regional engineering office and a global technology center that are located there. BAYTOWN VILLAGE SHOPPING CENTER

BAYTOWN ECONOMIC OVERVIEW

• Baytown Village Shopping Center is roughly 10 miles from Cedar Crossing Industrial Park. It • The Port of Houston is consistently ranked 1st in the United States in foreign waterborne comprises 15,000 prime acres with utilities and an industrial and commercial transportation tonnage, 1st in US imports, 1st in US export tonnage and 2nd in the US in total tonnage. The infrastructure. It is the world’s fifth largest industrial park, located across the Houston Ship Port Authority plans to undertake significant infrastructure improvements in the next few Channel from the Barbours Cut and Bayport container terminals. There are 56 miles of rail years to ensure that the Port of Houston can accommodate the advent of larger vessels and with storage capacity of 1,750 rail cars and a barge dock for commercial/industrial use for increased cargo resulting from the pending Panama Canal expansion in 2016, as well as the improved efficiency of transporting goods and containers from the Port Of Houston. Excel expected future demographic growth in the region. Logistics, Home Depot, JSW Steel, TMK IPSCO, and Walmart are amongst the major corporate tenants located there.

•  Corp recently announced it will provide advanced fiber Internet services into Cedar Crossing Industrial Park, providing Baytown with an extra boost to attract new businesses. The Internet-service provider is placing 11 miles of fiber cable at the site, a significantly bigger project than traditional projects in the Houston area, where a traditional project is around 500 to 1,000 feet. This build-out gives the park an added incentive when attracting new • Between 2012 and 2015, a total of $35 billion is expected to be invested in capital businesses. improvements at the Port of Houston creating 111,700 direct and 154,100 indirect jobs. Current projects include the dredging of the Barbours Cut Channel, the deepening and widening of • The Texas Enterprise Fund, a financial incentive tool for projects that offer significant projected the Bayport Channel by the summer of 2015, construction of 1,300 feet of wharf at Barbours job creation and capital investment, has proven to be a successful recruiting tool in the Cut Terminal, redevelopment of 20 acres at Barbours Cut Terminals 4 and 5 and continued Baytown area over the last four years. The city has attracted three major projects using funding buildout and improvements to both the Bayport Channel and Turning Basin. from the Texas Enterprise Fund that are located in and near the Cedar Crossing Industrial Park, including Borusan Mannesmann Pipe’s first manufacturing site in the United States (250 direct Most significantly, Baytown Village Shopping Center is proximate to the Port of Houston and the jobs, 1,027 total jobs), Flexsteel Pipeline Technology’s steel and plastic pipe manufacturing site Houston Ship Channel. The Port of Houston is one of the top performing seaports in the US and (130 direct jobs, 472 total jobs) and Tapco International’s refinery components manufacturing world in multiple categories. The Port of Houston supports 53,952 direct jobs and 1,026,820 site (100 direct jobs, 390 total jobs). total jobs in the state of Texas. It has an overall economic impact of $178.5 billion in Texas.

QUALITY OF LIFE | RECREATION Baytown Village Shopping Center is less than one mile from the Goose Creek Country Club and Golf Course, the premier golf course in Baytown with athletic facilities for tennis and swimming, as well as the preferred event venue in the city for social functions.

There are 45 parks totaling 967 acres in the city of Baytown, in addition to 117 acres of undeveloped and planned park land within city boundaries. There are a handful of these neighborhood and community parks near the Property. Because of its close proximity to the Gulf Coast and Galveston Bay, The Property is only minutes from miles of beaches and a multitude of water- based recreational activities including fishing and boating. BAYTOWN VILLAGE SHOPPING CENTER

BAYTOWN ECONOMIC OVERVIEW

PORT OF HOUSTON OVERVIEW QUICK FACTS Source: Port Of Houston Authority Employees The Baytown area facilities are staffed by approximately 3,785 ExxonMobil employees and contract personnel, who manage, operate, and maintain all of the manufacturing facilities The Port of Houston is made up of the Port of Houston Authority and the 150+ private industrial on a 24-hour, year-round basis. Economic Impact ExxonMobil is Baytown’s largest employer and companies along the 52-mile Houston Ship Channel. All together, the port authority and its taxpayer. It pays more than $410 million annually in salary, wages, and benefits and contributes neighbors along the ship channel are a large and vibrant component of the regional economy. approximately $78 million annually in taxes. Its overall local economic impact is more than $1 As one of the world’s largest seaports, The Port of Houston has been instrumental in Houston’s billion annually. development as a center of international trade. About 100 steamship lines offer service linking Houston with 1,053 ports in 203 countries. Each year, more than 200 million tons of cargo move New Development ExxonMobil Chemical Company has started construction of a multi-billion through the Port of Houston, carried by more than 8,000 vessel and 200,000 barge calls. dollar ethane cracker at its Baytown, Texas, complex and associated premium product facilities Overall, it is a $15 billion petrochemical complex, the largest in the nation and second largest in nearby Mont Belvieu. The project will employ about 10,000 construction workers, create worldwide. 4,000 related jobs in nearby Houston communities and add 350 permanent positions at the Baytown complex. It is expected to increase regional economic activity by roughly $870 million EXXONMOBIL BAYTOWN OVERVIEW per year and generate more than $90 million per year in additional tax revenues. Production is Source: ExxonMobil projected to begin in 2017.

The ExxonMobil Baytown area is the largest petroleum & petrochemical complex in the United FACILITIES States. Founded in 1920, the complex covers five square miles or 3,400 acres along the Houston • The Baytown Refinery has been in operation since 1920, and at that time, processed about Ship Channel. The complex includes a refinery, two chemical plants, a regional engineering 10,000 barrels of crude oil per day. Today, it has the capability to process up to 584,000 office and a global technology center. A plastics plant is located in nearby Mont Belvieu. barrels per day.

• The Baytown Chemical Plant began operations in 1940. It produces products such as the butyl in tires and the polypropylene in car bumpers.

• The Baytown Olefins Plant began operations in 1979 and is one of the largest ethylene plants in the world.

• The Mont Belvieu Plastics Plant is located 13 miles northeast of the main complex and was built in 1982. It produces high and low density polyethylene, which goes into products such as grocery bags and packaging films.

• The Baytown Technology & Engineering Complex has been on-site since the 1920s. It is now the headquarters for ExxonMobil Chemical Technology and is home to the research and development activities in Baytown. This site has produced innovative technology, such as the lithium-ion battery separator film and numerous plastics light-weighting technologies that help make vehicles more fuel efficient. INVESTMENT SALES DEBT UNDERWRITING Rusty Tamlyn, CCIM, SIOR Tyler Ford uction (ETA 2016) Pkwy Under Constr 69 LIBERTY rand Senior Managing Director Associate Director G Lake COUNTY The Woodlands Houston 713.852.3561 713.852.3517 MONTGOMERY State Park [email protected] [email protected] ExxonMobil COUNTY Corporate Headquarters

Eastex Frwy Ryan West Senior Managing Director 713.852.3535 [email protected] HFF HOUSTON HARRIS 9 Greenway Plaza, Suite 700 COUNTY Proposed

Robbie Kilcrease Houston, Texas 77046 George Bush Intercontinental Tel: 713.852.3500 Airport Real Estate Analyst Greenspoint Grand 713.852.3533 Fax: 713.852.3490 Pkwy Sam Houston Pkwy [email protected] hfflp.com Lake Houston 69

William Duncan Hardy Toll Road Real Estate Analyst Northwest Frwy North Frwy Sheldon 713.852.3435 Baytown Village ShoppingReservoir Center [email protected]

Beaumont Hwy North Loop Baytown East Frwy

Katy Frwy Energy Corridor Westchase Downtown George Bush Park Westheimer Rd San The Galleria East Loop Jacinto Bay This Offering Memorandum has been prepared by HFF for use by a limited number of parties and has been obtainedWestpark from sourcesTollway believed Pasadena Frwy reliable. While we do not doubt its accuracy, we have not verified it, and make no guarantee, warranty or representation about it. It is your Texas responsibility to confirm, independently, its accuracy and completeness. All projections have been developed by HFF, Owner and designated Medical sources, are based upon assumptions relating to the general economy, competition, and other factors beyond the control of Owner, and there- Loop West Center South Loop fore are subject to variation. No representation is made by HFF or Owner as to the accuracy or completeness of the information contained here- Southwest Frwy in, and nothing contained herein is or shall be relied on as a promise or representation as to the future performance of the property. Although Barbour’s Cut Terminal the information contained herein is believed to be correct, Owner and its employees disclaim any responsibility for inaccuracies and expect prospective purchasers to exercise independent due diligence in verifying all such information. Further, HFF, Owner and its employees disclaim any and all liability for representations and warranties, expressed and implied, contained in, or for omissions from, the Offering Memorandum69 FORT BEND William or any other written or oral communication transmittedCOUNTY or made available to the recipient. P. Hobby Galveston Pkwy Airport The Offering Memorandum does not constitute a representation that there has been no change in the business or affairs of the property or Bay Owner since the date of preparation of the Offering Memorandum. Analysis and verification of the information contained in the Offering Mem- Sam Houston Tollway Bayport Bend Terminal orandum is solely the responsibility of the prospective purchaser. Gulf Frwy Armand Bayou Additional information and an opportunity to inspect the property will be made available upon written request to interested and qualified Park

prospective investors. Fort

South Frwy Clear Owner and HFF each expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers regarding the prop- Lake erty and/or terminate discussions with any entity at any time with or without notice. Owner shall have no legal commitment or obligations to any entity 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.

This Offering Memorandum and the contents, except such information, which is a matter of public record orSmithers is provided in sources available to the public, are of a confidential nature. By accepting this Offering Memorandum, you agree that you will Lakehold and treat it in the strictest confi- dence, that you will not photocopy or duplicate it, that you will not disclose this Offering Memorandum or any of the contents to any other entity (except to outside advisors retained by you, if necessary, for your determination of whether or not to make a proposal and from whom you have GALVESTON obtained an agreement of confidentiality) without the prior written authorization of Owner or HFF and that you will use the information in this COUNTY Offering Memorandum for the sole purpose of evaluating your interest in the property and you will not use the Offering Memorandum or any BRAZORIA Proposed Grand Pkwy of the contents in any fashion or manner detrimental to the interest of Owner or HFF If you have no interest in the property, please return the COUNTY Offering Memorandum forthwith. 1/16