WEST HOUSTON CAMPUS

SIGNATURE CAMPUS - 1.3 MSF PRIME REDEVELOPMENT SITE - ±63 DEVELOPABLE ACRES PREMIER WEST HOUSTON LOCATION

OFFERING MEMORANDUM

HOUSTON, TEXAS EXCLUSIVE MARKETING ADVISORS

PRIMARY CONTACTS JARED CHUA BRANDON CLARKE Senior Vice President Executive Vice President +1 713.787.1975 +1 713.881.0976 [email protected] [email protected]

ADDITIONAL CONTACTS STEVE HESSE NOLAN MAINGUY Vice Chairman Senior Associate +1 713.881.0904 +1 713.577.1841 [email protected] [email protected]

DEBT & STRUCTURED

JOHN FENOGLIO JEFF STEIN Executive Vice President Senior Vice President +1 713.787.1911 +1 713.787.1906 [email protected] [email protected]

For additional information regarding this opportunity, please visit the property website at www.westhoustoncampus2020.com. © 2020 CBRE, Inc. All Rights Reserved. TABLE OF CONTENTS

01 EXECUTIVE SUMMARY 01 02 PROPERTY DESCRIPTION 09 03 SUBMARKET SNAPSHOT 25 OFFICE MARKET OVERVIEW 34

MULTIFAMILY MARKET OVERVIEW 37

HOTEL MARKET OVERVIEW 39

RETAIL MARKET OVERVIEW 41 04 HOUSTON MARKET 55 WEST HOUSTON CAMPUS

EXECUTIVE 01 SUMMARY

OFFERING MEMORANDUM

1 HOUSTON, TEXAS 2 PREMIER HEADQUARTERS CAMPUS & INVESTMENT OPPORTUNITY

CBRE, as exclusive advisor to The Howard Hughes Corporation®, is pleased to present to qualified users and investors a truly unique and extraordinary opportunity to acquire the West Houston Campus (the “Property” or the “Campus”) in Houston’s world- renowned Energy Corridor. Situated on ±63 developable acres, this 1.3 million-square- foot complex comprises one of Houston’s premier corporate campuses and represents the most exciting development opportunity across the entire market. The Property was The West Houston Campus represents the premier large-scale land tract in all originally developed for the corporate headquarters of ConocoPhillips, which relocated of Houston and would be an ideal redevelopment across multiple uses. directly across Interstate Highway 10 in late 2018.

The West Houston area is one of Houston’s most sought-after locations and is home to a significant number of global companies and facilities such as BP®, ConocoPhillips®, MD Anderson®, Methodist Hospital®, Shell, Sysco Foods®, TechnipFMC®, Texas Asset profile Children’s Hospital®, and Wood Group®, among others. This critical mass of some of the world’s top companies in energy, technology and other critical industries, coupled 600 North Dairy Ashford Drive ADDRESS: with the attractive demographic population to both the east and west, ensures the Houston, TX 77079 Energy Corridor’s long-term viability across all uses. TOTAL GROSS AREA: 1,302,597 SF Given its surrounding natural barriers, the west Houston area has become relatively LEASED: 0% dense with limited tracts available for future development. As such, the West Houston # OF STORIES: Three (Plus Basement Level) Campus represents an ideal corporate headquarters campus as well as an opportunity YEARS BUILT: 1984; 2007 for a large-scale, mixed-use development and is advantageously positioned at the FLOOR PLATE SIZES: ±13,000 to ±66,000 SF heart of the submarket. The Property’s high level of visibility and favorable ingress/ SITE: ±63 Developable Acres egress are perfectly positioned for the success of office, multifamily, retail, and N. Eldridge Parkway: ±897.6 feet (±0.17 miles) hospitality uses. FRONTAGE: N. Dairy Ashford: ±2,798.4 feet (±0.53 miles) RECENT CAPITAL Over $170 Million since 2007 INVESTMENT: The Howard Hughes Corporation owns, manages OWNER: and develops commercial, residential and mixed-use real estate throughout the U.S.

3 | WEST HOUSTON CAMPUS AERIAL VIEW

per day: ±40,000 NORTH ELDRIDGE PARKWAY

1,302,597 SF ±63 DEVELOPABLE ACRES

N OR TH D AIRY ASHFORD ROAD 10 KATY FREEWAY

per day: ±300,000

EXECUTIVE SUMMARY | 4 WELLNESS CENTER & RECEPTION BUILDING FIRST-CLASS, ON-SITE AMENITIES

Full complement of first-class, on-site amenities in demand among today’s most discerning office users.

Café/Full dining facility

Two-story fitness center

World-class wellness facilities

Soccer field

SIGNATURE CORPORATE HEADQUARTERS CAMPUS Olympic-size salt water swimming pool

+ Generously landscaped, ±63-acre developable site + Floor plates range from ±13,000 to ±66,000 square Full-size basketball court features a unique, well-elevated park-like setting feet and offer efficient space planning and significant + Constructed as ConocoPhillips’ corporate headquarters flexibility for a wide range of uses Multiple exercise rooms and, along with the neighboring Shell Oil Co. campus, + Structured and covered surface parking provide an was the initial development in the Energy Corridor, overall ratio of 2.45/1,000 SF, which can be easily known as Woodcreek expanded as needed Outdoor (lit) running track + Comprised of 17 individual three-story buildings with + Governed by Woodcreek Park protective covenants interconnecting walkways and bridges, nine acres of and restrictions, provided in its entirety on the Virtual Medical and dental office space lakes and 24 acres of extensive landscaping Deal room of the property website + World-class Wellness Center & Reception Building added in 2007 Indoor/outdoor event spaces

Significant Capital Recently Invested Banking services space + More than $170 million invested since 2007 - New Wellness Center & Reception Building completed in 2007 for ±$78 million Conference center facilities - New Central Plant completed in 2016 for ±$42 million - Detailed schedule provided in the Property Description section of the Offering Memorandum - The Campus did not sustain any flooding during Hurricane Harvey in 2017 Redundant power with back-up systems

5 | WEST HOUSTON CAMPUS FIRST-CLASS On-site amenities & features

FITNESS CENTER NEW CENTRAL PLANT

CONFERENCE CENTER FACILITY OUTDOOR SIDEWALK CORRIDOR

EXECUTIVE SUMMARY | 6 FIRST-CLASS ON-SITE AMENITIES

FITNESS CENTER SOCCER FIELD

FULL-SIZE BASKETBALL COURT OLYMPIC-SIZE SALT WATER SWIMMING POOL

7 | WEST HOUSTON CAMPUS FIRST-CLASS ON-SITE AMENITIES

CAFÉ / FULL DINING FACILITY FINANCIAL OFFICES

MEDICAL & DENTAL OFFICES WORLD-CLASS WELLNESS CENTER & RECEPTION BUILDING

EXECUTIVE SUMMARY | 8 CONROE

George Bush Intercontinental World-Class west hosuton Location Airport The Energy Corridor is a proven, leading destination in Houston due to its significance as a global center to a major industry, its historical performance and future growth prospects resulting from robust, continuous demand. WEST GLOBAL ECONOMIC CENTER HOUSTON CAMPUS + “Energy Capital of the World” and Houston’s second-largest employment center + Concentration of energy, technology and healthcare companies and facilities + Exceptional demographics, leading population growth and superior amenities KATY WEST HOUSTON/ ENERGY CORRIDOR MEMORIAL RIVER VILLAGES OAKS CBD GALLERIA/ UPTOWN WESTCHASE

Global or U.S. Headquarters Locations

William P. Hobby Airport

Ellington Airport

BP One of Houston’s Leading Office Submarkets + Perennial leader in office fundamentals with a concentration (66%) of Class A space Significant & Strategic Campuses + Greatest demand and lowest vacancy of any Houston submarket over the last 25 years + Premier corporate address and the new heart of the Houston workforce

Exceptional Regional Access + Immediate access to North Eldridge Parkway — the most significant north/south thoroughfare between Beltway 8 and State Highway 6 + Strategic location at the corner of I-10 and Eldridge — creates The West Houston Campus is advantageously situated at the very heart of the unmatched access in all directions globally renowned Energy Corridor.

9 | WEST HOUSTON CAMPUS HOUSTON, TEXAS

One of the nation’s most resilient and dynamic markets, Houston is also one of the few true “necessary cities" globally.

Unparalleled Local Economy Leading Destination for Individuals One of the World’s Leading Cities + “Energy Capital of the World” and Business + 4th Largest city in the U.S. - Oil, natural gas and green/alternative fuels + Fastest-growing metro in the nation (between (behind NYC, LA and Chicago) - Serves every facet of the energy industry 2000-2010 and 2010-2017) + 4th Most Fortune 500 HQs in the U.S. globally + 3rd Highest metro population growth in U.S. — (behind NYC, Chicago and DFW) + Houston Technology Center — Largest technology 92,000+ New residents + 3.6% Unemployment rate (December 2019) business incubator/accelerator in Texas in past 12 months + A.F.I.R.E. Ranked for “Global Real + Increasingly diverse economy — healthcare, + High quality of life — Low cost structure, Estate Investment” technology and distribution — buffers against positive employment, attractive/affordable national trends and provides stability and growth housing, quality public education + Port of Houston + Leader in corporate locations, relocations, and LEADING GLOBAL MARKETPLACE - 10th Largest in the world expansions Houston is firmly established as a premier global city - 1st in U.S. for imports and total tonnage + Central location (equidistant to both coasts) and is a top destination for investment by all capital + Texas Medical Center — Largest medical center in + Pro-business environment sources due to its unique combination of stability and the world + Low cost destination compared to other major dynamic growth potential. + One of the nation’s busiest airport systems metropolitan areas + One of the nation’s busiest rail centers + NASA’s Johnson Space Center

HOUSTON IS HOME TO OVER 500 DIGITAL + HP Inc. + BMC Software + PAS TECHNOLOGY COMPANIES + HP Enterprise + Oracle + Cardtronics + IBM + NetIQ + Empyrean Benefits Solutions The 100 largest digital tech companies in Houston employ a local workforce + Amazon + Dell + Quorom Software of more than 25,000 people. As of Fall 2018, there were nearly 30 tech + Microsoft + Texas Instruments + HighRadius employers with 300+ employees in Houston, including: TECH AND SUPPORTING DATA Greater Houston Partnership – Digital Tech in Houston, 2018 FINANCIAL SERVICES PAGE EXECUTIVE SUMMARY | 10 A SUBURBAN CAMPUS ENVIRONMENT – SUITED FOR post-covid 19 OFFICE RE-ENTRY In light of the COVID-19 pandemic, employee health, safety, and morale are top of mind perhaps more than ever. The way that office spaces are designed and used will undoubtedly evolve as employers adapt to the new needs and priorities of their workforce whilst following CDC standards. As employers develop strategies to safely reintegrate employees into the office, the design and location of West Houston Campus provide several advantages over more traditional urban office space.

11 | WEST HOUSTON CAMPUS ADVANTAGES OF CAMPUS DESIGN POST COVID:

A low rise, wide spread layout decreases office density and is easier to navigate without frequent elevator use, greatly reducing or eliminating elevator queues seen in office towers

A wide second story walking spine provides ample space to create designated walking lanes in each direction, allowing for better social distancing

The campus’ location means almost all employees will drive their own vehicles instead of using crowded public transportation, reducing exposure risk

Parking areas are spread throughout the campus, with fewer vehicles and less dense employee ingress/egress at single points of entry

Access gates and indoor reception desks create natural checkpoints to help control campus access, and can serve as temperature reading or symptom checkpoints

Green spaces, lake and outdoor walkways provide a calming As of May, 2020, Texas ranked 41st in COVID-19 infections per environment for employees and provide additional access to walking 100,000 people, and 42nd in deaths per 100,000. The state’s space to further encourage social distancing relatively low infection rates and state government actions indicate that employees may return to offices sooner than in Abundant natural light throughout the campus’ indoor space helps many states. improve mood and productivity Source: Johns Hopkins

An on-site, state of the art fitness center and sports/recreation amenities are for the exclusive use of employees

These design advantages have helped West Houston Campus remain open and operational throughout the COVID-19 pandemic.

EXECUTIVE SUMMARY | 12 WEST HOUSTON CAMPUS

PROPERTY 02 DESCRIPTION

OFFERING MEMORANDUM

9 HOUSTON, TEXAS 10 CONROE

premier west houston location

George Bush Intercontinental Airport

WEST HOUSTON CAMPUS

KATY WEST HOUSTON/ ENERGY CORRIDOR MEMORIAL RIVER VILLAGES OAKS CBD GALLERIA/ UPTOWN WESTCHASE

William P. Hobby Airport

Ellington Airport

11 | WEST HOUSTON CAMPUS WELLNESS CENTER & RECEPTION BUILDING property overview

SITE/ACCESS The West Houston Campus is situated on approximately 63 developable acres located in the northeast quadrant of the Katy Freeway (I-10) and North Eldridge Parkway. The site is bounded by North Dairy Ashford Road to the south, North Eldridge Parkway to the west, Addicks Reservoir to the north, and Shell’s Houston campus to the east. There are multiple points of ingress/egress via North Eldridge Parkway and North Dairy Ashford.

OFFICE CAMPUS Originally constructed from 1982 to 1984, the West Houston Campus is comprised of 17 three- “MAIN STREET” CONNECTOR story buildings totaling over 1.3 million gross square feet. Accommodating approximately 3,800 employees, the 17 interconnected office buildings include a basement level that houses critical equipment for the entire campus. Connected to the office buildings at the west side of the site is the Wellness Center & Reception Building. Completed in June 2007 and totaling 135,000 gross square feet, this three-story modern addition offers a wealth of on-site amenities.

While the Wellness Center & Reception Building remains fully intact, all of the remaining space across the campus has had all build-out fully demolished and is in concrete slab condition.

The West Houston Campus is governed by Woodcreek Park protective covenants and restrictions, which are provided in their entirety on the Virtual Deal Room of the property website at www.westhoustoncampus2020.com. UNIQUE, PARK-LIKE SETTING

PARKING DETAIL LOCATION YEAR BUILT TOTAL West Garage (Six Levels) 2007 2,184 East Parking Lot 1984 898 North Road Parking 1984 90 Executive Parking 1984 15 Total Campus Parking Spaces 3,187 Total Campus Parking Ratio 2.45/1,000 SF

PROPERTY DESCRIPTION | 12 WELLNESS CENTER & RECEPTION BUILDING significant capital investment

More than $170 million has been invested at the West Houston Campus since 2007, ensuring the Property remains a best-in-class office asset within the Energy Corridor. These capital investments have enhanced not only the look and feel of the Property but have also upgraded building systems, significantly reducing an investor’s near-term capital exposure.

A summary of capital improvements undertaken by Ownership is provided in the table below.

CAPITAL IMPROVEMENT YEAR(S) COMPLETED INVESTMENT

Wellness/Reception Building & West Garage 2007 $78,000,000

New Central Plant [1] 2014-2016 $42,000,000 CENTRAL PLANT Roof/Skylight Replacement 2008 $16,000,000

Canopy/Shade Replacement 2008 $10,500,000

Exterior Façade & Walkway Restoration 2008 $6,000,000

Emergency Generator Replacement 2013 $3,400,000

Elevator Modernization [2] 2007-2015 $2,500,000

Fire System Piping Updates 2014-2016 $1,700,000

Arbor Trellis Replacement 2008 $1,000,000

Emergency Power Distribution Upgrades 2012 $1,000,000

Fire Alarm System Replacement & Upgrades 2013 $950,000

PE Basement Remodel 2013 $900,000

Sanitary Piping Replacement (below Cafeteria) 2014-2016 $400,000 CONFERENCE CENTER

Data Center Refresh 2013 $330,000

Campus Perimeter Detection System 2013 $100,000

TOTAL $164,780,000

[1] Includes chillers, primary electrical feed, boilers, dock drainage improvements, addition of Spirit Way between Dairy Ashford and I-10, etc. [2] Includes the system modernization and cosmetic cab upgrades to seven of the 10 elevators in the 16 original office buildings.

13 | WEST HOUSTON CAMPUS PROPERTY DESCRIPTION | 14 SITE PLAN ±63 DEVELOPABLE ACRES

CENTRAL PLANT per day: ±40,000 NW2 NW3 NC NE2 NE3

WEST GARAGE NW1 EAST SURFACE PARKING LOT NE1 & RECEPTION (WC) WELLNESS CENTER WELLNESS PEDESTRIAN BRIDGE VISITOR PARKING WR

SE1 SW3 SW1 CC SE2

N ELDRIDGE PKWY

SW2 OLD KATY RD OLD KATY SC1 SE3

SC2

N D AIR Y A SHFORD RD

KATY FWY

10 per day: ±300,000

15 | WEST HOUSTON CAMPUS BUILDING DETAIL BY FLOOR

BUILDING NAME FLOOR # GROSS AREA (SF) BUILDING NAME FLOOR # GROSS AREA (SF) BUILDING NAME FLOOR # GROSS AREA (SF) NE3 1 27,415 SC2 1 34,987 CC Basement 12,312

NE3 2 27,415 SC2 2 34,987 CC 1 20,108

NE3 3 27,415 SC2 3 34,987 CC 2 20,732

SW3 1 21,638 SE2 1 13,718 CC 3 20,855

SW3 2 21,628 SE2 2 13,717 NE1 1 13,433

SW3 3 21,638 SE2 3 13,718 NE1 2 13,651

NE2 1 17,482 SW1 Basement - NE1 3 13,651

NE2 2 17,482 SW1 1 15,673 SE3 1 27,404

NE2 3 17,480 SW1 2 15,898 SE3 2 27,459

NW3 1 11,637 SW1 3 15,898 SE3 3 27,404

NW3 2 11,807 SW2 1 19,445 SE1 1 15,513

NW3 3 11,807 SW2 2 19,445 SE1 2 15,513

SC1 1 32,814 SW2 3 19,445 SE1 3 15,513

SC1 2 32,814 NW1 1 19,500 WC 1 44,379

SC1 3 32,814 NW1 2 19,718 WC 2 45,405

NC Basement 73,390 NW1 3 19,718 WC 3 45,216

NC 1 20,112 PEDESTRIAN NW2 1 19,707 BRIDGE ±21,000 NC 2 66,855 NW2 2 19,707 CAMPUS TOTALS 1,302,597

NC 3 39,432 NW2 3 19,707

PROPERTY DESCRIPTION | 16 WELLNESS CENTER & RECEPTION BUILDING + Completed in June 2007

+ Located on the west side of the site and connected to the Main Campus via the “Main Street” connector

+ Core and shell designed by Pickard Chilton; interiors designed by PDR

+ Features a three-story main reception area and houses the Campus’ primary amenities:

- World-class exercise facility

- Garden café

- Flexible conferencing

- Banking services

- Medical and dental services

- Visitor parking

17 | WEST HOUSTON CAMPUS CONSTRUCTION DETAILS

Vertical Transportation: Elevators & Escalator + The Main Campus has 10 Montgomery hydraulic elevators and one escalator (all vintage 1982).

- Between 2007 and 2015, seven of the 10 elevators were modernized (two freight and five passenger units).

- The escalator is original to the Property and has not been modernized.

- The new central plant has one Otis hydraulic elevator with a 6,000-pound capacity rating (2016 vintage).

+ The Wellness Center & Reception Building and adjacent West Garage have eight Otis elevators (vintage 2007).

- Five of the units are in the parking garage, and three are in the Wellness Center & Reception Building.

- The Wellness Center & Reception Building elevators are designated as freight, pool and reception units.

- The West Garage elevators are designated as passenger-type units and are rated at 3,000-pound capacity.

- The freight elevator is designated at 4,500-pound capacity.

Roofing & Walkways + The Main Campus roof system (of the 16 original office buildings) was replaced in October 2008 and remains subject to a 20-year warranty.

+ The 2008 project also addressed the replacement of the canopy/shade panels and the arbor trellis.

+ Restoration of the exterior façade and the first-floor and second-floor exterior main-street pedestrian bridges and walkways was also completed in 2008.

+ The Wellness Center & Reception Building’s roof was completed in April 2007 and remains subject to a 20-year warranty.

+ The Central Plant roof was completed in May 2016 and remains subject to a 20-year warranty.

PROPERTY DESCRIPTION | 18 SYSTEM DETAILS Emergency Power + UPS systems and two fully automated Cummins diesel-powered Mechanical, Electrical and Fire Life Safety generators (2 megawatts each) protect critical operation systems (data + Between 2014 and 2016, the mechanical plant was completely redesigned, elevated to a three- center electrical and cooling systems, Central Security Console) for the level, floor-enclosed structure and relocated at the north side of the McCollum Building and Main Campus. loading dock area. + All critical power for IT/TCOM are fully protected by UPS systems + The existing chillers were replaced with five new state-of-the-art Carrier chillers totaling 5,000 and batteries. tons (1,000 tons each, subject to five-year warranty from 2015). + Two air-cooled chillers totaling 800 tons provide emergency cooling for + The two original boilers were replaced in 2016 with five condensing boilers (Patterson-Kelly, all critical systems and are UPS protected and powered by the same two model #C4000; 4 million BTUs each) operating in series for greater efficiency. Cummins generators. + All central plant mechanical systems are variable speed drive and controlled by a building + The Wellness Center & Reception Building and West Garage are protected automation system (BAS) designed and operated by Computrols, Inc. by a single Cummins 750 kW unit (original to 2007 construction) that - The BAS communicates with a BASNET communication protocol but is 100% BACNET covers fire and life safety systems. compatible with BACNET bridge equipment. UPS Detail - About 50% of the original 16 buildings still have pneumatic controllers, and the rest of the UPS Unit Power Age Campus has been updated with DDC HVAC controllers. UPS-D1 80 kVA 10 Years + The Main Campus has a C-Simon fire alarm system (replaced & upgraded in 2013), and the UPS-D2 80kVA 9 Years Wellness Center & Reception Building has a Notifier system (2007). UPS-B1 250kVA 9 Years UPS-B2 250 kVA 8 Years - The Campus also has an EVAX evacuation speaker system (±2005). UPS-A1 250 kVA 9 Years - Computrols installed and maintains the fire alarm system. UPS-A2 250 kVA 9 Years UPS-A3 250kVA 8 Years + The fire sprinkler system main distribution lines and vertical risers across the Campus (excluding HU-UPS 225 kVA 12 Years Wellness Center & Reception Building) were replaced in 2016. UPS-Sa 500 kVA 12+ Years + The main domestic water distribution lines throughout the basement (less Wellness Center & UPS-Sc 225 kVA 12+ Years Reception Building) were also replaced. WC-UPS 20 kVA 3 Years Ages are approximate, as of Summer 2019.

19 | WEST HOUSTON CAMPUS IT Infrastructure + Large data center footprint with redundant computer room air conditioning (CRAC) heating/cooling and UPS power and overhead fiber cabling between cabinets.

+ For voice calls, the Campus has full Cisco VOIP capability with Cisco Call manager.

+ High-density wireless coverage throughout the Campus (including basement) supporting both corporate and guest services.

+ The Campus has fiber Metro Ethernet providing 10 Gigabit access to other locations in the Energy Corridor and throughout Houston. AT&T, Sprint, and Verizon have existing cable into the Campus with outside redundant paths providing T1, DS3, OC3, OC192, and UVN ring capabilities

+ The Campus’ fiber infrastructure supports dual redundant 10 Gibibit uplinks from MDF to every IDF closet.

+ Copper cabling in all IDF closets to support 1 Gig to all offices, conference rooms, and training rooms.

PROPERTY DESCRIPTION | 20 superior ingress / egress

North Eldridge Parkway + North Eldridge Parkway is the most significant Road, Memorial Drive and I-10. north/south thoroughfare between Beltway 8 and State + The West Houston Campus offers direct access to + From I-10, North Eldridge continues north to Clay Road Highway 6. It originates to the south in Sugar Land at North Eldridge Parkway, providing it with a unique, and US-290, ultimately terminating at US-249. US 90 and connects Westpark Tollway, Westheimer competitive advantage.

N ELDRIDGE PKWY

INGRESS EGRESS

N DA RD IRY ASHFORD

10 KATY FREEWAY

21 | WEST HOUSTON CAMPUS

DAIRY ASHFORD RD ASHFORD DAIRY N ELDRIDGE PKWY ELDRIDGE N PROPERTY DESCRIPTION | 22 WEST HOUSTON CAMPUS

SUBMARKET 03 SNAPSHOT

OFFERING MEMORANDUM

25 HOUSTON, TEXAS 26 AERIAL VIEW | EAST bound

DOWNTOWN HOUSTON GALLERIA 1 3 1 2 WESTCHASE 1 1 2

2 3 4 3 4 5 E 2 F 5 G

3 6 4 6 6 D 10 7 5 KATY FREEWAY4 B 8

C 7 WEST HOUSTON CAMPUS

A

CORPORATE PRESENCE RETAIL HOTEL MULTIFAMILY MEDICAL A Kiewit F TechnipFMC 1 CityCentre 5 Perthshire & Dairy Ashford 1 Westin Hotel 5 Embassy Suites 1 Domain 4 The Slate 1 MemorialHermann The Lofts Memorial City Medical B Schlumberger G Kiewit Engineering 2 Town & Country 6 Memorial Drive & Dairy 2 Hotel Sorella 6 Hilton Garden Inn Alexan 5 Arlo Memorial Center BASF Corporation Village Ashford Four Points and Lofts Apartments C Halff Associates Candlewood Suites at 7 Holiday Inn Express Ascent at CityCentre 2 Nova Medical Centers 3 Memorial City Mall CityCentre & Suites 6 Ashford Apartments D Shell Oil Campus 2 Arrabella Townhomes 3 Texas Medical Services 4 Nottingham 3 Home2 Suites by Hilton 8 Courtyard by Marriott 7 Live Oak Apartments E Pacific Drilling Shopping Center 3 The Grove at Wilcrest 4 Concentra Urgent Care Kimley-Horn 4 Hampton Inn

27 | WEST HOUSTON CAMPUS AERIAL VIEW | WEST BOUND

5 4 7 3 4 6 L 5 3 4 M 10 4 1 2 3 J 5 3 9 8 7 6 6 B 2 C H 8 I G 1 D E 1 2 1 D F F

1

A WEST HOUSTON CAMPUS KATY FREEWAY 10

CORPORATE PRESENCE RETAIL HOTEL MULTIFAMILY MEDICAL A Kiewit D McDermott International I Merrill Lynch 1 North Eldridge & Memorial 1 Omni at Westside 6 SpringHill Suites 1 The Grand on Memorial 7 Legend at Park Ten 1 MD Anderson - West Houston

B CITGO E Bank of America J Gulf Interstate Engineering 2 Eldridge Parkway 2 Fairfield Inn & Suites 7 Residence Inn 2 Parkside at Memorial 8 Park Place 2 West Houston Medical Center Lab Schlumberger Sysco F ConocoPhillips K Diamond Offshore Drilling 3 Top Golf 3 Extended Stay 8 Staybridge Suites 3 Marquis on Memorial 9 Marquis on Park Row 3 Texas Children’s Hospital - West Dow Chemical Residence Inn Gulf States Toyota G Siemens Energy L Regus 4 Barker Cypress & I-10 4 Hyatt House Holiday Inn 4 Broadstone Energy Park 10 Sevona Park Row 4 Houston Methodist - West Hospital IHS Markit Petroleum Geo-Services Wood Group Transocean SUBSEA7 5 Houston Marriott 5 H6 Apartments 5 MD Anderson Cancer Center - Katy H BP C KBR 6 14220 at Park Row SUBMARKET SNAPSHOT | 28 10 KATY FREEWAY

WEST HOUSTON CAMPUS

premier destination for business and residents

One of the nation’s premier commercial centers, West Houston’s business corridor is home to global technology, energy and engineering companies. Its first-class hotels, popular dining and destination retail, highly desirable residential neighborhoods, and some of the region’s top-rated school districts make it a great place to call home. As Houston’s primary center of population and jobs growth, it continues to attract a growing, highly-educated work force.

+ Strategically located along Interstate 10, with Beltway 8 and other major + Master plan includes transit, landscape and urban design, and marketing campaigns thoroughfare proxmiity. promoting the corridor to STEM employers and skilled workers.

+ Houston’s second-largest employment center and one of its premier areas for an active, + In 2015, it was announced that plans would transform the nearby Addicks Park & Ride healthy lifestyle. facility into the Tech & “Energy Corridor Transit Center” — a mixed-use development and

+ Home to 300+ multinational, national and local companies in increasingly diversified high-capacity transit hub for West Houston. industries such as life sciences, technology, engineering, finance, and healthcare. + Tech & Energy Corridor District — Formal association of area employers that works with

+ Attracts employees from across the entire Houston region. public and private organizations to facilitate the retention of existing companies and the recruitment of new companies. + Model community of progressive companies with a master plan that includes long-term and short-term improvements supporting the area’s current and future economic vitality.

29 | WEST HOUSTON CAMPUS POPULATION WITHIN 30 MINUTES submarket advantages OF THE ENERGY CORRIDOR 2.6M RESIDENTS 1.3M LABOR FORCE

HOUSTON’S SECOND-LARGEST HISTORICALLY HOUSING OPTIONS RANGE EMPLOYMENT CENTER WITH HOUSTON’S LEADING FROM THE AFFORDABLE TO MORE THAN 94,000 EMPLOYEES GROWTH CORRIDOR THE LUXURIOUS 37% OF THE HOUSTON METRO POPULATION

40% OF ALL HOUSTON AREA CONVENIENT SHOPS, 50+ MILES AND 26,000+ ACRES ATTRACTIVE TO EMPLOYERS WITH EMPLOYED PERSONS RESTAURANTS AND HOTELS OF PARKS AND TRAILS LARGE WORKFORCES INCLUDING TECHNOLOGY, ENERGY, MEDICAL AND FINANCE 43% OF ALL HOUSTON AREA ARCHITECTS AND ENGINEERS

43% ACCESS TO A RAPIDLY GROWING QUALITY PUBLIC ±30 MINUTES FROM GEORGE OF ALL BUSINESS AND AND VERY WELL-EDUCATED EDUCATION AND PRIVATE BUSH INTERCONTINENTAL TECHNICAL PROFESSIONALS IN THE HOUSTON REGION RESIDENTIAL POPULATION SCHOOLS AND HOUSTON HOBBY AIRPORTS

Source: Energy Corridor District

SUBMARKET SNAPSHOT | 30 timeline of the energy corridor’s corporate growth

SHELL

WEST HOUSTON CAMPUS 2011 1981 2017 2012 1982 2013 1992 1993 2015 1983 2018 2019 2016 2014 1999 2010 1980 2007 2002 2008 2009 2004

EXXONMOBIL

GE

EARLY DEMOGRAPHIC REGIONAL HOUSTON ON PIONEERS ADOPTERS MAJOR PLAYERS EXPANSIONS ENERGY BOOM DOWNTURN THE REBOUND

31 | WEST HOUSTON CAMPUS BLUE-CHIP CORPORATE PRESENCE MAJOR WEST HOUSTON OFFICE TENANTS + The west Houston area’s concentration of quality, high-growth corporate residents attracts related service providers, many of which are smaller organizations that benefit from proximity to larger, well-established companies.

+ These smaller companies are often willing to pay a premium to be close to their core clients.

+ This produces a positive “ripple effect” as larger users take full occupancy of the space they have leased, and smaller supporting companies lease space adjacent to their clients.

+ The result is sustained demand that has historically produced strong positive net absorption, higher occupancy rates, and improved market positions for the landlords of the Energy Corridor’s best-located, highest-quality office assets.

SUBMARKET SNAPSHOT | 32 33 | WEST HOUSTON CAMPUS Inventory & Construction Activity Office Inventory + The Energy Corridor is the second-largest suburban office OFFICE MARKET OVERVIEW submarket in Houston, with 26.9 million square feet. CLASS B + The Energy Corridor is recognized as one of the world’s most important + Class A properties comprise 17.7 million square feet and 34% energy centers and is home to some of the largest, most respected account for 66% of the submarket’s net rentable area. companies in the world. + With a relatively new inventory, 34% of the submarket’s + It is a perennial Houston leader with the greatest demand and lowest office space has been delivered over the last 11 years. vacancy of any submarket over the last 25 years. CLASS A + Currently no new office construction in progress. 66% + This preferred corporate location is home to multi-national and local growth-oriented companies. Source: CoStar + This world-class submarket is ideally positioned for significant growth that outperforms the market over the long term.

SUBMARKET SNAPSHOT | 34 ENERGY CORRIDOR - KEY POINTS: MARKET FUNDAMENTALS + Through 2019, Class A properties in the Energy Corridor are 84.7% leased, up 50 basis points over 2018. Class A + A critical business center and destination for global sublease availability of 4.8% is down from 7.1% in Q3 of 2018. industries.

+ The Energy Corridor has posted positive net absorption during 13 of the last 15 years , including over 470,000 square + Historically a dynamic, growth-oriented submarket feet in 2019. Annual net gains average nearly 545,000 square feet over that time. with a strong core of large, corporate users.

+ Class A asking rents of $36.46 PSF (gross) have remained flat over the last five years but still average 3.0% per annum + Home to three of the top 10 energy companies in since 2013. Over the last 10 years, Class A rents are up 21%. the world.

+ Overall Energy Corridor rents of $30.63 PSF and Class A rents compare favorably to the Houston averages of $25.08 + Dynamic underlying Class A fundamentals include: and $35.19 PSF, respectively. - 15-Year average leased rate: 90.4%

- 15-Year average annual absorption: 556,268 SF ENERGY CORRIDOR OFFICE STATISTICS – YE 2019 - 15-Year average annual rent growth: 3.8% DIRECT TOTAL TOTAL NET TOTAL NET ASKING INVENTORY VACANT % SUBLEASE ABSORPTION ABSORPTION RENTS + Relatively new inventory (34% developed over the QUALITY # Bldgs SF SF % LEASED AVAILABLE (2019) (2018) (Gross) last 11 years) that appeals to today’s corporate users. Class A 64 17,669,122 3,905,341 84.7% 4.8% 630,505 46,163 $36.46 Class B 99 9,195,771 2,309,754 76.0% 0.5% (158,964) 63,551 $22.53 Total 163 26,864,893 6,215,095 81.7% 3.3% 471,541 109,714 $30.63

Source: CoStar Filter: Office, >20k sf, Existing, Totals include Class A,B

35 | WEST HOUSTON CAMPUS ENERGY CORRIDOR OFFICE | SUPPLY & DEMAND TRENDS

4,000,000 100%

3,500,0003,000,000 90%100%

3,000,000 80%90% 2,500,000

2,500,000 70% 80%

) 2,000,000 F

2,000,000S 60%70% (

n 1,500,000 o 1,500,000i 50%

t 60% d p e r s o a 1,000,000s 1,000,000 40%50% e b L A

t 500,000 30% %

e 40%

N 500,000

l

a 0 20% t 30% TOTAL NET ABSORPTION (SF) TOTAL o

T 0 (500,000) 10% 20%

(1,000,000)(500,000) 0% 10%

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 (1,0002008,000) 2009 0% Q1 - 2020 Source: CBRE Research, Q1 2020. Total Net Absorption RBA Delivered Class A Leased

ENERGY CORRIDOR OFFICE | RENT & OCCUPANCY TRENDS $40.00 100% 100% $45 90% $35.00 90% $40 80% 80% $30.00 ) $35

F 70%

S 70% P

( $30 $25.00 660%0% d n t e e

$25 s R

$20.00 50% a 50% e L n g

i $20 k 440%0% % s $15.00 A $15 e 30%

g 30% a

r $10.00 e $10 20% v 20% A

AVERAGE ASKING RENT (PSF) ASKING AVERAGE $$55.00 10% 10% $0 0% $0.00 0%

2011 2008 2009 2010 2012 2013 2014 2015 2016 2017 2018 2019

Q1 - 2020 Source: CBRE Research, Q1 2020. Class A Rents (Gross) Class A Leased

SUBMARKET SNAPSHOT | 36 MULTIFAMILY MARKET OVERVIEW Katy Freeway / West Houston Submarket + The Katy Freeway/West Houston multifamily submarket is centered on I-10 and includes + The Katy Freeway/West Houston submarket has Houston’s second-largest concentration properties located between Beltway 8 and Greenhouse Road. of multifamily homes, accounting for over 5% of the market’s total inventory. + The submarket is generally bound by Westpark Tollway to the south and Clay Road to + Katy Freeway/West Houston properties reported an overall Q1 2020 occupancy of 90.4% the north. and Class A occupancy of 90.9%.

Houston Multifamily Market + Net absorption over the last 24 months totals 3,068 units, outpacing deliveries of 669 + Houston’s continued top job growth makes it one of the nation’s top residential markets. units over the same period of time.

+ Houston’s strong multifamily fundamentals include overall Q1 2020 occupancy of 90.3% + New product in the area is the most desirable as renters seek modern amenities and locations closer to work, retail and restaurants. and Class A occupancy of 88.2%. + Class A properties, therefore, continue to capture the majority of the demand, accounting + Total 2019 net absorption of 8,297 Class A units is slightly less than the completed for 86% of the net absorption in Q1 2020. 10,046 units. + Rents in communities completed since 2015 average $1.50 PSF, reflecting a 12% premium + Across the Houston market, Class A rents currently average $1.51 PSF, up 29% since 2000. over all other Class A units. + Nearly 2,500 units remained under construction at the end of Q1 2020 and are expected + As demographics continue to shift westward, there will be additional multifamily demand to be delivered by mid-2020. near retail and entertainment centers.

KATY FREEWAY/WEST KATY FREEWAY/WEST MULTIFAMILY - Q1 2020 MULTIFAMILY INVENTORY TOTAL NET TOTAL NET AVERAGE # OF ABSORPTION ABSORPTION RENTAL RATE PROPERTIES UNITS LEASED (2019) (2018) (PSF) Houston 2,875 682,1109 90.3% 1,572 12,572 $1.22 CLASS A Katy Freeway/West 118 35,130 90.4% 123 1,227 $1.19 31% Katy Freeway/West - Class A 37 12,289 90.9% 106 819 $1.34

Source: CoStar Note: Includes communities with at least 50 units

69%

ALL OTHERS

Source: CoStar 37 | WEST HOUSTON CAMPUS KATY FREEWAY/WEST MULTIFAMILY - OCCUPANCY & RENT TRENDS $1.45 95%

$1.30 90%

$1.15 85%

$1.0 0 80%

$0 .85 75% 4,4,600 UNITS DELIVEREDED $0 .7 0 70%

$0 .5 5 65%

$0 .4 0 60% Construction Activity 200 7 200 8 200 9 201 0 201 1 201 2 201 3 201 4 201 5 201 6 201 7 201 8 201 9 Q1 2020 ClassClass A Rents (PSF)(PSF) ClClass as s AA LeLeased as e d + 12,653 multifamily units were delivered in 2019 and 6,468 units were delivered

Source: CoStar in Q1 2020. + Another 2,490 units remained under construction and more than 15,318 units are proposed. KATY FREEWAY/WEST MULTIFAMILY - SUPPLY & DEMAND TRENDS Source: CoStar Single-Family Market Overview 3,000 95% According to the Houston Association of Realtors, the median price for single- family homes reached the highest level ever for an April, climbing 2.4% to 2 ,4 00 90% $251,000 in April 2020. The average price remained flat at $310,331. Sales of all 1, 800 85% property types totaled 7,192 and $2.1 billion, down 21.6% from April 2019. Despite the slowdown in April, year-to-date sales were still 1.4 % ahead of last year’s level 1, 200 80% and both the median and average prices remained stable month-over-month.

600 75% In April 2020, leases of single-family homes fell 4.1% year over year, while 0 70% townhome and condominium leases decreased 9.5%. Average rent for single- 4,4,600 UNITS DELIVEREDED (600 ) 65% family homes also dipped, down by 1.7% to $1,765 while the average rent for townhomes and condos was down by 1.2% to $1,565. (1,200) 60% 200 7 200 8 200 9 201 0 201 1 201 2 201 3 201 4 201 5 201 6 201 7 201 8 201 9 Q1 2020 AbsorptionAbsorption ((Units)Units) DeliveriesDeliveries (Units) ClassCl as sA A Leased Le as e d Source: Houston Business Journal Source: CoStar

SUBMARKET SNAPSHOT | 38 HOTEL MARKET OVERVIEW

+ Houston’s Katy Freeway / West hotel submarket primarily Houston Hotel Market consists of properties located along the Katy Freeway (I-10) + Houston’s hotel market comprises 94,944 rooms, with 15,793 in the development pipeline, of which west of the Interstate 610 loop. 4,943 are currently under construction.

+ It also includes hotels in the West Houston city of Katy. + The average daily rate is forecasted to decline in 2020, hitting $75.07, which is a $26.50 drop from 2019.

+ Houston occupancy is expected to decrease to 41.3% in 2020, a 34.4% drop from 2019. KATY FREEWAY/WEST HOTEL INVENTORY + Looking towards 2020, Houston RevPAR is expected to decline by 51.5%

Source: CBRE Hotels Research, STR, Q1 2020.

Upper Katy Freeway/West Submarket 48% Price + With 13,540 rooms, Katy Freeway/West is the second-largest submarket, accounting for 14% of total Houston hotel inventory.

Lower + Demand is largely supported by business travelers. As Houston sees additional employment gains, Price increased hotel occupancy will follow.

+ Through the recent downturn, upper-priced hotels posted less significant losses in average daily rates 52% than lower-priced hotels. + RevPAR for upper-priced hotels declined 3.2% in 2019 vs a 9.3% decline among lower-priced hotels.

Source: CBRE Hotels Research, STR, Q1 2020.

Source: Hotel Horizons December 2019 - February 2020 Edition

HYATT PLACE

KATY FREEWAY/WEST HOTEL STATISTICS – MID-YEAR 2019

INVENTORY UNDER CONSTRUCTION AVERAGE PROPERTIES ROOMS OCCUPANCY (ROOMS) DAILY RATE REVPAR

Houston 986 94944 54.8% 4943 99.26 54.37

Katy Freeway West 119 13540 55.5% 484 88.64 49.18

Source: STR, Dodge, CBRE Hotels Research, Q1 2020.

39 | WEST HOUSTON CAMPUS 75% KATY FREEWAY/WEST | HOTEL OCCUPANCY TRENDS

Katy Freeway/West Hotel | Occupancy Trends Construction Activity 70% 70%70% + At least 13 hotels are in the planning or construction phases: 2 upper-priced 68%68% hotels containing 432 rooms, 10 lower-priced hotels containing 835 rooms, 66%66% 64%64% and an independent hotel containing 30 rooms, for a total of 1,297 rooms. 65% 62% 62% Source: STR, Dodge, CBRE Hotels Research, Q1 2020. 60% 58% 58% 56% 56% 60% 54%54% 52%52% COURTYARD BY MARRIOTT 50%50% 2015 2016 2017 2018 2019 Q1 2020 YTD 55% 2015 Overall Submarket2016 Submarket2017 - Upper-Priced2018 2019Submarket - Lower-Priced 2012 2013 2014 2015 2016 2017 2018 3Q2019 Q1 - 2020 Overall Submarket Submarket - Upper-Priced Submarket - Lower-Priced

Source: CBRE Hotels Research, STR, Q1 2020.

KATY FREEWAY/WEST | HOTEL REVPAR TRENDS Katy Freeway/West Hotel | RevPar Trends $120.00 $120.$120 00

$100.00 $100.$100 00

$80.00$80$80.00 SHERATON HOUSTON WEST $60.00 $60$60.00

$40.00$40 $40.00

$20.00$20 $20.00

$0.00$0 2015 2016 2017 2018 2019 Q1 2020 YTD $0.00 2015 20Overall12 Submarket20162013 Submarket20172014 - Upper-Priced20201815 Submarket201 -6 Lower-Priced2019 2017 2018 3Q2019

Q1 - 2020 Overall Submarket Submarket - Upper-Priced Submarket - Lower-Priced

Source: STR, Dodge, CBRE Hotels Research, Q1 2020.

SUBMARKET SNAPSHOT | 40 RETAIL MARKET OVERVIEW + The Katy Freeway/West Houston retail submarket is centered on I-10 and includes properties located between Beltway 8 (to the east) and Greenhouse Road (to the west).

+ The submarket is generally bound by Westpark Tollway to the south and Clay Road to the north.

Houston Retail Market + Fundamentals remain strong across Houston with continued positive net absorption and single- digit vacancy.

+ 2020 fundamentals include a leased rate of 94.2%, over three hundred million square feet of net absorption and average rents that remain near all-time highs.

+ A conservative construction cycle has competitively positioned retail landlords over the near term.

+ Within Houston’s “Inner Loop”, new retail space is largely driven by new mixed-use centers, which include both new construction and redevelopment of existing buildings.

Katy Freeway/West Houston Submarket + Matching the strong fundamentals of the greater Houston retail market, the Katy Freeway/West KATY FREEWAY/WEST HOUSTON Houston submarket is 91.7% leased. RETAIL INVENTORY + Rents for properties built after 2000 average $21.45 PSF (NNN) while the highest-quality properties command rents of $36.00 PSF (NNN).

+ While the Katy Freeway/West Houston retail supply remains relatively constrained at 12.8 million square feet, the adjacent city of Katy has another 16.0 million square feet of retail space.

AFTER + Also on the periphery of the Energy Corridor, recent demand for retail has been spurred by the 55% 2000 expanding population and new master-planned communities along the Grand Parkway corridor. BEFORE 2000 + Epicenters of retail activity to the east and west include the Memorial City, CityCentre and Town & Country lifestyle developments and Katy Mills Mall.

+ The 1.7 million-square-foot Memorial City Mall is set for a major makeover with more public spaces, 45% greater walkability and best-in-class retail, restaurants and entertainment.

Source: CoStar

41 | WEST HOUSTON CAMPUS KATY FREEWAY/WEST HOUSTON RETAIL STATISTICS – YTD 2019 # OF TOTAL NET ABSORPTION TOTAL NET AVERAGE ASKING PROPERTIES EXISTING SF LEASED (2019) ABSORPTION (2018) RENTS (NNN) Houston 8,419 307,586,118 94.20% 3330112 843,709 $27.39 Katy Freeway/West 339 12,853,058 91.7% 150,415 -42,110 $17.23 Katy Freeway/West - Since 2000 146 4,022,240 89.80% 72,497 -16,682 $22.07

Source: CoStar, CBRE Research

KATY FREEWAY/WEST HOUSTON RETAIL SUPPLY & DEMAND TRENDS

7,000,000 100%

6,000,000 95%

5,000,000 90%

4,000,000 85%

3,000,000 80%

250,0002,000,000 100% 75% 95% 200,0001,000,000 70% 90% 150,000 0 65% 85% 100,000 60% (1,000,000) 80%

50,0(2,000,000)00 75% 55%

70% (3,000,000)0 50% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 YE-2019 65% (50,000) 2011 60% 2006 2007 2008 2009 2010 2012 2013 2014 2015 2016 2017 2018 2019 (100,000) 55% Source: CoStar Q1 - 2020 (150,000) 50%

Total Deliveries (SF) Total Net Absorption (SF) Leased

SUBMARKET SNAPSHOT | 42 TEXAS CHILDREN’S HOSPITAL

HEALTHCARE PRESENCE

Many of Houston’s largest hospitals have recently established and/or expanded their presence in the Energy Corridor, adding critical healthcare services to the rapidly growing area. The three institutions profiled have invested over $875 million along a 4.5-mile stretch of I-10.

TEXAS CHILDREN’S HOSPITAL - WEST CAMPUS

Texas Children’s Hospital – West Campus + Texas Children’s was the first major hospital to establish a presence in the Energy Corridor.

+ Completed in 2010, the first suburban hospital dedicated to children is located at the northwest corner of I-10 and Barker Cypress Road.

+ The more than 550,000-square-foot facility is located on 55 acres with two operating rooms and 48 patient beds.

+ The West Campus includes 26 beds in a dedicated pediatric emergency center available 24/7.

+ Several projects initiated in 2015 totaled $50 million and enhanced on-site services.

43 | WEST HOUSTON CAMPUS HOUSTON METHODIST - WEST HOSPITAL

Houston Methodist – West Hospital + Methodist System’s fifth hospital in Houston serves patients from West Houston, Katy and surrounding communities.

+ Expansions totaling $170 million were recently completed at the campus, which offers nearly 200 beds and is located west of Texas Children’s West Campus along I-10.

+ The project included a new six-story building with additional hospital beds, operating rooms, more space for imagining, an expanded emergency department, and a new parking garage.

+ The campus is adjacent to Texas Children’s campus. It includes hospitals completed in 2010 and 2017 along with several medical office buildings.

MD ANDERSON - WEST HOUSTON

MD Anderson - West Houston + Part of the renowned University of Texas MD Anderson Cancer Center network. MD Anderson’s West Houston campus serves residents in Katy and across the Energy Corridor and Memorial.

+ A new 260,000-square-foot medical office building was completed in 2019. In addition to this $78-million facility, MD Anderson leases 38,000 square feet in the Energy Corridor for its diagnostic and imaging center.

+ The new facility is located on more than 20 acres along the north side of I-10 just one mile west of the West Houston Campus.

SUBMARKET SNAPSHOT | 44 DIRECT ACCESS TO HOUSTON’S PRIMARY THOROUGHFARES Energy Corridor businesses and residents benefit from superior regional access to Houston’s well-developed transportation network. Strategically positioned along the Katy Freeway (I-10), this convenient location reduces commute times and puts more productive hours in each day.

+ The stretch from downtown Houston to its western suburb of Katy has up to 26 lanes at Beltway 8 and is one of the widest freeways in the world. + Approximately 300,000 vehicles daily traverse I-10 (Katy Freeway) near the West Houston Campus.

+ Also known as Beltway 8, it forms an 88-mile loop around Houston. + Provides access to the Westchase District to the south and the expanding communities to the northwest. + Links the Energy Corridor to George Bush Intercontinental Airport and Houston Hobby Airport.

+ Traverses north-south through the western portion of the Energy Corridor. + Connects US-290 and SH 249 in Northwest Houston and major thoroughfares including Memorial Drive, Westheimer Road and the Westpark Tollway to the south.

+ Will become Houston’s third outer loop highway and the longest beltway in the U.S. when complete. + Has significantly enhanced access between the Energy Corridor and Northwest Houston.

+ Limited-access toll road that originates one block west of Interstate Loop 610 in the Galleria and traverses 20 miles to the west to Grand Parkway (SH 99). + Along its route, this east-west corridor connects SH 6, Beltway 8, US-59, and the Galleria area.

+ George Bush Intercontinental Airport: One of the world’s busiest airports serving 43.5 million passengers each year. Easily accessible from the Energy Corridor.

+ Houston Hobby Airport: Primarily served by low-cost air carriers with over 55 domestic and international destinations transporting 14.5 million passengers annually.

+ METRO: Offers four METRO bus stops along North Dairy Ashford Road (just steps from the Property), and the Addicks Park & Ride lot is less than two miles to the west. + Addicks Park & Ride lot planned to become the new Energy Corridor Transit Center with a circulator connecting all major Energy Corridor campuses.

45 | WEST HOUSTON CAMPUS HUMBLE 290 17

14 WEST HOUSTON CAMPUS: DRIVE TIMES AND DISTANCES 13 CYPRESS 45 LOCATION DISTANCE TIME 8 1 State Hwy 6 2.0 5.0 249 ALDINE 2 Beltway 8 3.5 13.0 99 6 JERSEY VILLAGE 3 Westpark Tollway 5.9 15.0 WEST 69 4 West Houston Airport 6.6 13.0 HOUSTON 59 CAMPUS 6 5 Westchase District 6.8 15.0 8 290 6 US-290 8.9 19.0 4

7 Grand Parkway 10.2 12.0 610

8 I-610 10.8 16.0 KATY 7 10 9 US-59 11.2 19.0 12 1 2 MEMORIAL 8 10 ENERGY VILLAGES CBD 10 Galleria 11.7 25.0 CORRIDOR GALENA PARK 11 Sugar Land 13.2 25.0 CINCO RANCH 10 HOUSTON 5 MILES 5 12 Katy 13.5 16.0 3 15 9 BELLAIRE 13 State Hwy 249 15.0 34.0 MISSION BEND 69 610 14 Cypress 16.6 27.0 59 15 Texas Medical Center 19.2 35.0 10 MILES 16 16 Houston Hobby Airport 32.0 41.0 45 17 George Bush Intercontinental Airport 32.9 36.0 99 SUGAR LAND 11 MISSOURI CITY

8 15 MILES RICHMOND BROOKSIDE VILLAGE SUBMARKET SNAPSHOT | 46 PEARLAND 6 PLANNED TRANSPORTATION IMPROVEMENTS + In 2015, it was announced that plans will transform the nearby Addicks Park & Ride facility + Development concepts for the Energy Corridor Transit Center include residential, office into the Energy Corridor Transit Center — a high-capacity, multi-modal transit hub for and hospitality uses, with supporting retail and restaurants.

West Houston. + It will serve as both a connection point and a destination within the Energy Corridor.

+ The Energy Corridor Transit Center will include a central “Main Street” bisecting the + Plans also call for an Energy Corridor Circulator — a bidirectional trolley bus providing current site. frequent transit service to and from major destinations across the Energy Corridor.

+ The new Main Street will serve as a primary frontage street for substantial new mixed-use + These plans will result in greater connectivity and convenience across the Energy Corridor development with parking garages replacing existing surface spaces. and West Houston.

WEST HOUSTON CAMPUS

6

Y

W

K

P

E

PARK ROW DRIVE G

D I

R

D ADDICKS L RD RD

PARK & RIDE N E FO LOT SH A IRY N DA

10 KATY FREEWAY

MEMORIAL DRIVE 47 | WEST HOUSTON CAMPUS DAIRY ASHFORD RD ASHFORD DAIRY The Energy Corridor Transit Center The Energy Corridor Transit Center and accompanying development will serve as both a connection point and a destination for the District. By enhancing service opportunities at this critical junction along I-10, residents and employees of The Energy Corridor will experience increased mobility within the District, the City of Houston, and the region at large.

SUBMARKET SNAPSHOT | 48 EXCEPTIONAL POPULATION GROWTH

Affluent Demographics + Situated at the heart of Houston’s primary growth corridor.

+ Features many of Houston’s most desirable residential neighborhoods and some of the state’s highest ranked schools.

+ An educated, skilled workforce is attractive to employees in specialized industries such as energy, technology, engineering, finance and healthcare

+ Upscale residential offerings include single-familyCONROE homes in gated communities, modern lofts and luxury apartments. High-quality, more affordable residential options within the area satisfy a wide range of lifestyles and budgets.

+ The newest upscale, mid-rise apartment communities exemplify a trend of higher density and amenity-rich properties to address demand from higher-income renters.

+ Neighborhoods boast proximity to a prestigious commercial district with world- class amenities and lush green parks that continue to attract homebuyers and businesses alike.

George Bush Intercontinental Airport

KATY WEST HOUSTON/ ENERGY CORRIDOR MEMORIAL RIVER VILLAGES OAKS CBD GALLERIA/ UPTOWN WESTCHASE

William P. Hobby Airport

Ellington Airport

49 | WEST HOUSTON CAMPUS STRONG DEMOGRAPHICS WEST HOUSTON CAMPUS 3-MI 5-MI 10-MI MEMORIAL KATY HOUSTON RADIUS RADIUS RADIUS VILLAGES ISD MSA POPULATION 2019 Estimated Population 78,585 264,779 1,525,353 21,532 373,232 7,154,526 2024 Projected Population 86,542 285,580 1,642,106 22,938 442,585 7,854,337 Annual Growth Rate (2010-2019) 2.3% 1.7% 1.5% 1.3% 4.5% 2.1% Total Growth Rate (2000-2019) 42.3% 33.9% 43.6% 12.7% 177.1% 52.4% Total Growth Rate (2010-2019) 23.5% 16.3% 15.0% 12.2% 49.7% 20.8%

BUSINESSES & WORKFORCE Number of Businesses 4,688 14,831 69,520 1,714 10,866 255,362 2019 Employees (Daytime Population) 60,476 193,358 734,018 12,580 118,082 3,062,991 2019 Labor Force (Residents) 42,836 147,783 822,204 9,929 191,962 3,639,128

INCOME & HOUSING 2019 Average HH Income $126,203 $108,734 $91,050 $266,787 $131,603 $95,264 2019 Median HH Income $82,958 $70,012 $59,525 $200,001 $101,936 $65,606 2019 Per Capita Income $53,989 $43,591 $32,135 $93,403 $42,460 $33,020 2019 Median Housing Value $381,069 $308,707 $212,166 $1,186,937 $281,797 $216,690 2019 Average Housing Value $450,309 $395,931 $319,331 $1,293,783 $327,678 $287,871

EDUCATIONAL ATTAINMENT Associate’s Degree 6.8% 7% 6.5% 2.2% 8.1% 7.2% Bachelor’s Degree 36.6% 30% 23.7% 40.1% 31.1% 21.3% Graduate or Professional Degree 23.3% 19% 12.6% 40.9% 17.8% 12.1% Totals 66.7% 55.5% 42.8% 83.2% 57.0% 40.6% Source: CBRE FastReport

Over the past two decades, as the population to the west and northwest has expanded exponentially, Houston’s geographic center has shifted toward the West Houston Campus — placing it at the heart of the new Houston workforce.

SUBMARKET SNAPSHOT | 50 Urban Parks and Recreation FIRST-CLASS AMENITIES + Extensive public parks, greenbelts and trails attract both businesses and residents to the area. + Many employers and residents of the Energy Corridor are drawn to the area for its suburban conveniences that are just minutes away from their office or + Includes 26,000 acres of urban park area and over 50 miles of recreational trails that connect residence. residences, amenities and businesses. + Convenient neighborhood shopping is a hallmark of the Energy Corridor, where

numerous retailers provide both business and professional services. TERRY HERSHEY PARK GEORGE BUSH PARK + Residents and employees enjoy the Energy Corridor’s more than 60 distinct dining experiences, ranging from world-class cuisine to family-friendly dining. + The Energy Corridor offers an abundance of name-brand hotel accommodations that include Hilton, Marriott, Omni, Sheraton, and Wyndham.

Terry Hershey Park George Bush Park + 12.5-Mile network of walking and biking trails along + Located along the south side of I-10, this Buffalo Bayou, on the south side of I-10, from the 7,800-acre park is among the most popular in Barker Dam on the west to Beltway 8 on the east. West Houston.

+ Just one-half mile west of the West Houston + It is highly regarded for its sports fields for soccer Campus, the trail extends to the north, under and baseball, numerous pavilions, playgrounds, I-10, and continues along Addicks Dam where it ponds, and jogging and biking trails. branches into two segments.

OMNI HOUSTON + One of the branches runs east to North Eldridge Parkway (at the West Houston Campus) while the other traverses west to METRO’s Addicks Park + The Energy Corridor District was selected by the National Park Service’s Rivers, and Ride Lot. Trails and Conservation Assistance Program to receive planning assistance for + This enables area residents to travel by bicycle the West Houston Trail Systems. to the park and ride lot or to their jobs in the + Through this partnership, the National Park Service and the Energy Corridor networked office buildings — including the West District will continue to develop and improve trails throughout the area. Houston Campus. + In addition to its abundant parks, other recreational activities abound with public and private golf courses, country clubs, tennis centers.

51 | WEST HOUSTON CAMPUS CITYCENTRE

Town & Country Village + Town & Country Village is an upscale shopping and lifestyle center with more than 75 shops and services located along Beltway 8 at Memorial Drive, just south of CityCentre.

+ It offers upscale luxury brand retailers, stylish boutiques, business, spa and healthcare services, fine dining and casual eateries.

+ Located among the garden-scaped patios and fountains are retailers such as Ann Taylor, Barnes & Noble, Pottery Barn, White House Black Market, and Williams-Sonoma.

+ Popular dining includes Café Express, Fleming’s Prime Steakhouse & Wine Bar and McCormick & Schmick’s.

www.townandcountryvillage.com

TOWN & COUNTRY VILLAGE Destination Retail & Popular Dining

CityCentre + One of Houston’s most successful mixed-use developments, CityCentre is located at the southeast corner of Beltway 8 and the Katy Freeway.

+ This open-air, pedestrian-oriented lifestyle center is located on 37 acres within one of the wealthiest zip codes in the state.

+ It includes nearly 400,000 square feet of shops, restaurants, and entertainment; a 266-room Sorella Hotel; and more than 1,000 high-end residential units.

+ Surrounded by European-style, open plazas and impeccably designed green space, the property is home to a Studio Movie Grill and a 140,000-square-foot LifeTime Fitness Center.

+ Retailers include Anthropologie, Sur la Table and West Elm.

+ Restaurants feature Brio Tuscan Grille, Eddie V’s Prime Seafood, RA Sushi, and Texas de Brazil.

www.citycentrehouston.com

SUBMARKET SNAPSHOT | 52 KATY MILLS MALL Memorial City Mall + Five miles east of the West Houston Campus, Memorial City Mall is a 2.7 million-square-foot, super-regional mall located along the south side of Katy Freeway at Gessner Road just east of Beltway 8 and adjacent to the Memorial City Hospital complex.

+The mall is considered the epicenter of redevelopments in the Memorial City area.

+ The mall has more than 150 shops and is anchored by Dillard’s, JCPenney, Macy’s, Target, and Sears.

+ Memorial City Mall is a retail, entertainment, dining and lifestyle center hybrid with premier retailers, an NHL regulation-sized ice arena, a Cinemark Theater, and a 3,600 square-foot children’s play castle.

www.memorialcitymall.com

MEMORIAL CITY MALL

Katy Mills Mall + Just over 12 miles west of the West Houston Campus, Katy Mills is a 1.6 million-square-foot retail and entertainment destination located on the south side of I-10 just west of Grand Parkway.

+ It features 175 of the best names in retail outlets, off-price retailers and unique specialty stores.

+ Retailers include Abercrombie & Fitch, Banana Republic, Bass Pro Shops, Coach, Foot Locker, Kate Spade, and Nine West.

+ Other amenities at the mall include a food court, several themed restaurants, a state-of-the-art movie theater, and several high-quality, family oriented entertainment venues.

www.simon.com/mall/katy-mills

53 | WEST HOUSTON CAMPUS COURTYARD BY MARRIOTT QUALITY HOTEL ACCOMMODATIONS

Within a two-mile radius of the West Houston Campus, there are 15 hotels with more than 2,500 rooms and suites. Some of the most prominent accommodations include the following.

HOME2 SUITES BY HILTON

SPRINGHILL SUITES

SUBMARKET SNAPSHOT | 54 WEST HOUSTON CAMPUS

HOUSTON 03 MARKET

OFFERING MEMORANDUM

55 HOUSTON, TEXAS 56 HOUSTON MARKET A GLOBAL MARKETPLACE LARGEST U.S. METROS Houston is firmly established as a premier global city and a leading destination for investment # Metro Area Current Population by all capital sources due to its unique combination of stability and dynamic growth. It is internationally known as home to NASA’s Johnson Space Center, the Port of Houston, and Texas 1 New York 20,477,969 Medical Center, the world’s largest medical complex. As a result, Houston combines its position 2 Los Angeles 13,542,894

as the “Energy Capital of the World” with a significant depth in the healthcare, technology, 3 Chicago 9,643,624 aerospace, and distribution industries to create an economic composition that serves as a buffer 4 Dallas/Fort Worth 7,516,037 to national economic trends and provides stability and continued growth. 5 Houston 7,050,107 As the nation’s fourth-largest city and fifth-largest metropolitan area, Houston remains a preferred Source: Nielsen location for businesses with a low-cost, low-tax and high-quality corporate environment and Houston has one of the youngest and fastest-growing access to one of the nation’s top workforces. populations with new residents attracted by abundant job opportunities, competitive cost of living, and high quality of life. —Greater Houston Partnership

57 | WEST HOUSTON CAMPUS Houston Employment + Industry diversification has mitigated the negative effects of the energy slowdown and will continue to support job growth.

+ Local job gains in leisure and hospitality, education and health services, and government are offsetting potential fluctuations in manufacturing, mining, and financial services.

+ The Greater Houston Partnership projects Houston will add 71,000 jobs in 2019, resulting Key Highlights in more than 600,000 net jobs added over the last 10 years (fourth in the nation). + The Partnership also projects a 22% increase in employment for the next decade.

Central U.S. Location

Pro-Business Community Industry Diversification

2.7%, Mining and Logging Favorable Tax Climate 1.0%, Information

3.8%, Other Services

Wide Array of Economic Development Support & Incentives 5.2%, Financial Activities 19.8%, Trade, Transportation and Utilities

7.2%, Manufacturing Competitive Costs of Doing Business & Living

Critical Mass of Headquarters Regional Hubs 7.6%, Construction

Superior Transportation Network 16.2%, Professional and Business Services

10.7%, Leisure and Sustained Economic & Demographic Growth Hospitality

High Quality of Life 12.6%, Education and 13.1%, Government Health Services Favorable Year-Round Climate Source: Bureau of Labor Statistics

HOUSTON MARKET | 58 Leading Population Growth HOUSTON’S POPULATION GROWTH 12 11 ±7.1 MILLION 10 Current Residents in the Houston MSA 9 Fifth-Largest MSA in the U.S. Fourth-Largest City in the U.S. 8 7

6 FASTEST-GROWING METRO 5 Between 2010-2017 4 POPULATION FORECAST 3 2020-2040: 55% GROWTH 2

1 PROJECTED POPULATION GROWTH: 2019-2024 0 2015 2019 2020F 2025F 2030F 2035F 2040F Rank MSA New Residents Population (in millions) Dallas/Fort Worth 702,880 1 Source: Greater Houston Partnership

2 Houston 629,980

3 Atlanta 573,600 TOP ANNUAL POPULATION GROWTH

4 Phoenix 572,220 Dallas/Fort Worth, TX 131,767

5 Miami 404,120 Phoenix, AZ 96,268

Source: Moody’s Analytics Houston, TX 91,689 Atlanta, GA 75,702

Orlando, FL 60,045

Seattle, WA 54,894 IN MIGRATION TO HOUSTON

Austin, TX 53,806 Moody’s projects that Houston will rank third nationwide Riverside, CA 51,934 250+ in population growth over the next five years, adding Tampa, FL 51,438 NEW 345 new residents each day. RESIDENTS Washington, DC 49,949 DAILY IN 2018

- 20,000 40,000 60,000 80,000 100,000 120,000 140,000

Source: Moody’s Analytics (12 Months through December 2018)

59 | WEST HOUSTON CAMPUS PROJECTED EMPLOYMENT GROWTH: 2019-2024 Rank MSA New Residents

1 Dallas/Fort Worth 317,350 Houston’s Cost Advantages 2 Houston 249,220 + Superior reputation as a highly desirable, cost-effective location for both businesses and their employees. 3 New York City 160,460

+ No state or city taxes on personal and corporate income coupled with some of the lowest 4 Los Angeles 137,880 housing and living costs within the top 20 major U.S. metros. 5 Miami 129,330 + Central location and superb transportation infrastructure further enhance Houston’s appeal Source: Moody’s Analytics to local, national and international companies seeking logistical efficiency.

+ Office market rents remain among the most competitive of major U.S. cities.

HOUSTON MARKET | 60 Houston-Area Based Fortune 500

#23 #54 #86 #89 Preferred Corporate Location The Houston metro and the State of Texas are consistently recognized by Site Selection Magazine among the top destinations for corporate location, relocation and expansion. Corporate executives scouting new locations most frequently #94 #127 #167 #181 #213 cite taxes, regulations, the legal environment, and a skilled workforce as their top criteria.

Widely regarded as a business-friendly destination for Corporate America, the Houston metro is home to 21 Fortune 500 company headquarters. #224 #272 #276 #283

#299 #302 #330 #352 #357

#383 #411 #456

Source: Fortune.com, 2019

61 | WEST HOUSTON CAMPUS NATIONAL RECOGNITION

TOP METRO FOR ECONOMIC GROWTH POTENTIAL TOP METROS WHERE YOUNG ADULTS ARE MOVING — Business Facilities Magazine—July 2019 — The Brookings Institution—April 2019

TOP DESTINATION CITY - NINTH CONSECUTIVE YEAR BEST U.S. CITY FOR EX-PATS — U-HAUL International—May 2019 — InterNations—November 2018

NATION’S BEST CITIES FOR MILLENNIALS TOP METROS FOR JOB GROWTH #1 — The Langston Co—April 2019 — U.S. Bureau of Labor Statistics—November 2018

MOST DIVERSE CITY IN THE U.S. BEST SEAPORT IN NORTH AMERICA — WalletHub—April 2019 — Asia Cargo News—May 2018

BEST U.S. METRO AREA FOR STEM WORKERS LEAST EXPENSIVE REAL ESTATE MARKETS — American Enterprise Institute’s Housing Center—May 2019 — Property Shark—July 2018

TOP EMERGING LIFE SCIENCES CLUSTER COST OF LIVING IN TOP U.S. CITIES HIRING FOR JOBS #2 — CBRE—March 2019 — Refinery29—July 2018 BEST QUALITY OF LIFE - RICE UNIVERSITY TOP HOUSING MARKETS FOR NEW HOMES — Princeton Review—August 2018 — MetroStudy—April 2018

HOUSTON MARKET | 62 Houston Office Market

Inventory & Construction Activity + The Houston office market is the sixth-largest in the U.S. + Comprised of 213 million square feet, 55% of which is high-quality Class A space. + Deliveries have yielded nearly 3 million sq. ft. of new inventory since 2018. + Ongoing construction exceeds 3.5 million square feet, 54% of which was pre-leased at the close of Q1 2020. - Construction activity is concentrated in the CBD and Katy Freeway submarkets, with six buildings totaling nearly 2.5 million square feet underway. - As it remains attractive to out-of-town businesses and both job and population growth continues, Houston’s long-term outlook remains positive.

Resilient Market Fundamentals + Despite recent headwinds, Houston’s market performance remains favorable, with overall leased rate of 80.0% and average asking rents at $28.82 per square foot (gross). + Sublease space decreased by almost 1.6 million sq. ft. from the prior quarter, coming in at 4.96 million sq. ft. Almost half of the change was withdrawn by a single tenant and the other half was leased during the quarter. + While rent growth has been flat over the last two years, Class A growth since 2008 still averages 2.0% annually. + A slowdown in the development pipeline should allow the market’s occupancy rate to stabilize and net absorption to move more quickly toward positive territory.

HOUSTON OFFICE MARKET SNAPSHOT | YTD 2019 % TOTAL NET TOTAL NET TOTAL NET DIRECT # INVENTORY TOTAL SUBLEASE ABSORPTION ABSORPTION ABSORPTION ASKING QUALITY BUILDINGS SF VACANT SF % LEASED AVAILABLE (Q1 -2020) (2019) (2018) RENTS (FS) Class A 346 116,460,166 20,776,560 82.2 3,679,318 -580,914 28371 74443 35.98 Class B 562 72,384,435 17,453,993 75.9 1,199,653 78,706 -511232 -1233790 23.2 Class C 355 24,308,055 4,437,656 81.7 85,328 -74,515 -28797 19261 17.4 Totals 1263 213,152,656 42,668,209 239.8 4,964,299 -576,723 -511658 -1140086 76.58

Source: CBRE Research, Q1 2020.

63 | WEST HOUSTON CAMPUS SUPPLY & DEMAND TRENDS

12,000,000 100%

90% 10,000,000 80% 8,000,000 70%

6,000,000 60%

4,000,000 50%

40% 2,000,000 30% 0 20% TOTAL NET ABSORPTION (SF) TOTAL (2,000,000) 10%

(4,000,000) 0%

2011 2008 2009 2010 2012 2013 2014 2015 2016 2017 2018 2019

Q1 - 2020 TOTAL NET ABSORPTION RBA DELIVERED CLASS A OCCUPIED

Source: CBRE Research, Q1 2020.

RENT & OCCUPANCY TRENDS

$45 100%

$40 90%

$35 80% 70% $30 60% $25 HOUSTON OFFICE MARKET | KEY POINTS: 50% $20 + Houston’s office market is the sixth-largest in the U.S. 40% $15 + 50% of the market is comprised of high-quality, Class A space 30% % OCCUPIED $10 + National leader in direct net absorption from 2011 through 2014, 20% $5 second-highest in 2015 10% AVERAGE ASKING RENT (PSF) ASKING AVERAGE $0 + Historically strong Class A fundamentals include: 0%

2011 - 15-Year average leased rate: 88.4% 2008 2009 2010 2012 2013 2014 2015 2016 2017 2018 2019 - 15-Year average annual absorption: 2.8 MSF Q1 - 2020 CLASS A ASKING RENTS CLASS A OCCUPIED - 15-Year average annual rent growth: 3.5% Source: CBRE Research, Q1 2020.

HOUSTON MARKET | 64 GEORGE BUSH INTERCONTINENTAL AIRPORT Exceptional Transportation Network Houston is well-served by a system of radial and ring highways that provide excellent access to markets outside the region. Houston’s central U.S. location places it equidistant from the nation’s major population centers — New York (1,631 miles) and Los Angeles (1,550 miles). Positioned at the crossroads of Interstates 10 and 45, Houston also has a world-class airport system and is home to the 10th largest port in the world.

Houston Airport System + One of North America’s largest public airport systems, positioning Houston as a key international gateway city.

+ Comprised of George Bush Intercontinental Airport, William P. Hobby Airport, and Ellington Airport.

+ Supports over 230,000 regional jobs and has an annual economic impact of approximately $27.5 billion.

+ Passenger traffic numbers in 2018 totaling nearly 60 million passengers (excluding Ellington Airport).

+ When combined, IAH & HOU passengers totals rank as nation’s fifth-busiest airport.

George Bush Intercontinental Airport + Tenth-busiest airport in the nation in passenger numbers serving nearly 44 million passengers each year.

+ Continues to report record growth in international traffic.

+ Hub for United Airlines, ranking second largest in the U.S. with scheduled non- stop domestic and international service (over 185 non-stop destinations).

+ Offers service to more destinations in Mexico than any other airport in the U.S.

+ Daily flights to major cities in Europe, Mexico, Latin America, Canada, Asia, Australia and Africa.

65 | WEST HOUSTON CAMPUS PORT OF HOUSTON + $339 Billion economic impact on Texas (21% of Texas GDP) and $801.9 Billion across the nation.

+ Creates 1.35 million jobs in Texas and 3.2 million jobs nationwide.

+ Ranked 1st in imports and 2nd in total tonnage.

+ Ranked 10th largest port in the world.

+ Ranked 1st in U.S. foreign tonnage.

+ Improvements of $700 million planned over the next 10 years.

William P. Hobby Airport + Houston’s oldest commercial airport and home to predominantly low-cost air carriers.

+ Serves more than 55 domestic and international destinations.

+ Served by American, Delta, JetBlue and Southwest Airlines.

+ Supports over 52,000 regional jobs and has an annual economic impact of approximately $4.4 billion.

+ Posted a record-setting 14.5 million passengers served in 2018.

HOUSTON MARKET | 66 WEST HOUSTON CAMPUS

67 | WEST HOUSTON CAMPUS AFFILIATED BUSINESS DISCLOSURE DISCLAIMER CBRE, Inc. operates within a global family of companies with many subsidiaries This Memorandum contains select information pertaining to the Property and and related entities (each an “Affiliate”) engaging in a broad range of the Owner, and does not purport to be all-inclusive or contain all or part of the commercial real estate businesses including, but not limited to, brokerage information which prospective investors may require to evaluate a purchase services, property and facilities management, valuation, investment fund of the Property. The information contained in this Memorandum has been management and development. At times different Affiliates, including CBRE obtained from sources believed to be reliable, but has not been verified for Global Investors, Inc. or Trammell Crow Company, may have or represent clients accuracy, completeness, or fitness for any particular purpose. All information who have competing interests in the same transaction. For example, Affiliates is presented “as is” without representation or warranty of any kind. Such or their clients may have or express an interest in the property described in information includes estimates based on forward-looking assumptions relating this Memorandum (the “Property”), and may be the successful bidder for the to the general economy, market conditions, competition and other factors Property. Your receipt of this Memorandum constitutes your acknowledgment which are subject to uncertainty and may not represent the current or future of that possibility and your agreement that neither CBRE, Inc. nor any Affiliate performance of the Property. All references to acreages, square footages, has an obligation to disclose to you such Affiliates’ interest or involvement in and other measurements are approximations. This Memorandum describes the sale or purchase of the Property. In all instances, however, CBRE, Inc. and certain documents, including leases and other materials, in summary form. its Affiliates will act in the best interest of their respective client(s), at arms’ These summaries may not be complete nor accurate descriptions of the full length, not in concert, or in a manner detrimental to any third party. CBRE, Inc. agreements referenced. Additional information and an opportunity to inspect and its Affiliates will conduct their respective businesses in a manner consistent the Property may be made available to qualified prospective purchasers. with the law and all fiduciary duties owed to their respective client(s). You are advised to independently verify the accuracy and completeness of all summaries and information contained herein, to consult with independent

legal and financial advisors, and carefully investigate the economics of this CONFIDENTIALITY AGREEMENT transaction and Property’s suitability for your needs. Your receipt of this Memorandum constitutes your acknowledgment that (i) it is a confidential Memorandum solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition ANY RELIANCE ON THE CONTENT OF THIS MEMORANDUM of the Property, (ii) you will hold it in the strictest confidence, (iii) you will IS SOLELY AT YOUR OWN RISK. not disclose it or its contents to any third party without the prior written The Owner expressly reserves the right, at its sole discretion, to reject any authorization of the owner of the Property (“Owner”) or CBRE, Inc., and (iv) or all expressions of interest or offers to purchase the Property, and/or to you will not use any part of this Memorandum in any manner detrimental to terminate discussions at any time with or without notice to you. All offers, the Owner or CBRE, Inc. If after reviewing this Memorandum, you have no counteroffers, and negotiations shall be non-binding and neither CBRE, Inc. further interest in purchasing the Property, kindly return it to CBRE, Inc. nor the Owner shall have any legal commitment or obligation except as set forth in a fully executed, definitive purchase and sale agreement delivered by

the Owner. WEST HOUSTON CAMPUS PRIMARY CONTACTS JARED CHUA BRANDON CLARKE Senior Vice President Executive Vice President +1 713.787.1975 +1 713.881.0976 [email protected] [email protected]

ADDITIONAL CONTACTS STEVE HESSE NOLAN MAINGUY Vice Chairman Senior Associate +1 713.881.0904 +1 713.577.1841 [email protected] [email protected]

DEBT & STRUCTURED FINANCE

JOHN FENOGLIO JEFF STEIN Executive Vice President Senior Vice President +1 713.787.1911 +1 713.787.1906 [email protected] [email protected]

For additional information regarding this opportunity, please visit the property website at www.westhoustoncampus2020.com.

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