VELVET TACO GALLERIA

HOUSTON, : TROPHY URBAN CORE PROPERTY

15-Year Single Tenant Ground Lease Property Photo 2626 West Loop South, Houston, TX 77027 EXCLUSIVE OFFERING Representative Photo

Table of Contents Investment Overview 4 Investment Highlights 5 Financial Analysis 6 FB Society 7 Concept Overview 8 In Recent News 9 Property Photos 10-15 Surrounding Area 16-17 The Galleria 18 Location Overview 19 Houston, Texas Overview 20-21 State Map 22 Demographics 23 HOUSTON, TEXAS: TROPHY URBAN CORE PROPERTY Confidentiality and Disclaimer

Marcus & Millichap hereby advises all prospective purchasers of other material terms of the lease; cash flow may be interrupted the accuracy or completeness of the information provided. All Net Leased property as follows: in part or in whole due to market, economic, environmental or potential buyers must take appropriate measures to verify all of other conditions. Regardless of tenant history and lease the information set forth herein. The information contained in this Marketing Brochure has been guarantees, Buyer is responsible for conducting his/her own obtained from sources we believe to be reliable. However, investigation of all matters affecting the intrinsic value of the NON-ENDORSEMENT NOTICE Marcus & Millichap has not and will not verify any of this property and the value of any long-term lease, including the information, nor has Marcus & Millichap conducted any likelihood of locating a replacement tenant if the current tenant Marcus & Millichap Real Estate Investment Services, Inc. (“M&M”) investigation regarding these matters. Marcus & Millichap makes should default or abandon the property, and the lease terms that is not affiliated with, sponsored by, or endorsed by any no guarantee, warranty or representation whatsoever about the Buyer may be able to negotiate with a potential replacement commercial tenant or lessee identified in this marketing package. accuracy or completeness of any information provided. tenant considering the location of the property, and Buyer’s legal The presence of any corporation’s logo or name is not intended ability to make alternate use of the property. to indicate or imply affiliation with, or sponsorship or As the Buyer of a net leased property, it is the Buyer’s By accepting this Marketing Brochure you agree to release Marcus endorsement by, said corporation of M&M, its affiliates or responsibility to independently confirm the accuracy and & Millichap Real Estate Investment Services and hold it harmless subsidiaries, or any agent, product, service, or commercial listing completeness of all material information before completing any from any kind of claim, cost, expense, or liability arising out of of M&M, and is solely included for the purpose of providing tenant purchase. This Marketing Brochure is not a substitute for your your investigation and/or purchase of this net leased property. lessee information about this listing to prospective customers. thorough due diligence investigation of this investment opportunity. Marcus & Millichap expressly denies any obligation CONFIDENTIALITY AND DISCLAIMER ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE to conduct a due diligence examination of this Property for CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS. Buyer. The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be SPEICAL COVID-19 NOTICE Any projections, opinions, assumptions or estimates used in this reviewed only by the party receiving it from Marcus & Millichap Marketing Brochure are for example only and do not represent and should not be made available to any other person or entity All potential buyers are strongly advised to take advantage of the current or future performance of this property. The value of without the written consent of Marcus & Millichap. This their opportunities and obligations to conduct thorough due a net leased property to you depends on factors that should be Marketing Brochure has been prepared to provide summary, diligence and seek expert opinions as they may deem necessary, evaluated by you and your tax, financial and legal advisors. unverified information to prospective purchasers, and to establish especially given the unpredictable changes resulting from the only a preliminary level of interest in the subject property. The continuing COVID-19 pandemic. Marcus & Millichap has not been Buyer and Buyer’s tax, financial, legal, and construction advisors information contained herein is not a substitute for a thorough retained to perform, and cannot conduct, due diligence on behalf should conduct a careful, independent investigation of any net due diligence investigation. Marcus & Millichap has not made any of any prospective purchaser. Marcus & Millichap’s principal leased property to determine to your satisfaction with the investigation, and makes no warranty or representation, with expertise is in marketing investment properties and acting as suitability of the property for your needs. respect to the income or expenses for the subject property, the intermediaries between buyers and sellers. Marcus & Millichap future projected financial performance of the property, the size and its investment professionals cannot and will not act as Like all real estate investments, this investment carries and square footage of the property and improvements, the lawyers, accountants, contractors, or engineers. All potential significant risks. Buyer and Buyer’s legal and financial advisors presence or absence of contaminating substances, PCB’s or buyers are admonished and advised to engage other professionals must request and carefully review all legal and financial asbestos, the compliance with State and Federal regulations, the on legal issues, tax, regulatory, financial, and accounting documents related to the property and tenant. While the physical condition of the improvements thereon, or the financial matters, and for questions involving the property’s physical tenant’s past performance at this or other locations is an condition or business prospects of any tenant, or any tenant’s condition or financial outlook. Projections and pro forma important consideration, it is not a guarantee of future success. plans or intentions to continue its occupancy of the subject financial statements are not guarantees and, given the potential Similarly, the lease rate for some properties, including newly- property. The information contained in this Marketing Brochure volatility created by COVID-19, all potential buyers should be constructed facilities or newly-acquired locations, may be set has been obtained from sources we believe to be reliable; comfortable with and rely solely on their own projections, based on a tenant’s projected sales with little or no record of however, Marcus & Millichap has not verified, and will not verify, analyses, and decision-making.) actual performance, or comparable rents for the area. Returns any of the information contained herein, nor has Marcus & are not guaranteed; the tenant and any guarantors may fail to Millichap conducted any investigation regarding these matters pay the lease rent or property taxes, or may fail to comply with and makes no warranty or representation whatsoever regarding

3 INVESTMENT OVERVIEW PRICE: $7,777,778 | CAP: 4.50% | RENT: $350,000 15-Year Triple-Net Ground Lease

Marcus & Millichap is pleased to present the exclusive offering for a subject Velvet Taco; an investment opportunity in the economic powerhouse of Southeast Texas within Harris County, and more particularly located at 2626 West Loop South in Houston, Texas. Opened January 25th, 2021, the subject investment consists of a 2,132 SF building on a +/- 0.23-acre parcel. Situated just off one of the nation’s busiest thoroughfares, Loop 610 as an outparcel to The Galleria, Texas’ largest shopping center and fourth largest domain nationally. The subject property is located on the west side of Loop 610, which experiences average daily traffic counts exceeding 252,400 vehicles, respectively. To the west: Dillard’s; To the south: The Galleria; To the east: Shell Gasoline. Houston is a city in Texas, within the Houston - The Woodlands - Sugar Land metropolitan statistical area.

The investment opportunity is subject to a brand new 15-year, triple-net ground lease with Taco Libre XXIII, LLC dba Velvet Taco (“Tenant”). The lease commenced upon store opening, January 25th, 2021 and is subject to two (2), five (5)-year tenant renewal options, bringing the total possible lease term to 25 years. The initial rent is $350,000 and is subject to increase by ten percent (10.0%) every five years. The lease is corporately guaranteed by Velvet Taco, Inc.; which currently operates 20-units and has vast expansion plans.

About the Tenant

Velvet Taco is a temple to the liberated taco. They’re a one-of-a-kind taco concept serving premium food in a unique & funky fast-casual setting. Founded in 2011, the -based concept set out to elevate the taco through globally inspired recipes and the freshest ingredients. The acclaimed restaurant provides a broad sampling of international tastes and inventive combinations, delivering flavors that are as memorable as they are delicious. Velvet Taco is disrupting the idea of the taco shop, with an inspired response to consumers' increasing desire for premium quality and a fun, authentic dining experience. In 2016, Velvet Taco was awarded Nation’s Restaurant News “Hot Concept.” With a handmade tortilla as their vessel and the guiding motto “set my tacos free,” the sky's the limit on Velvet Taco’s menu. Drawing from globe-trotting flavors and breaking the mold with inventive combinations, the chef-inspired concept offers a broad sampling of over 20 taco varieties on their innovative menu, as well as creative sides and dessert. Chefs prepare everything from scratch—from slow-roasted rotisserie chicken to housemade pickles—and borrow from the historic roots of inner-city taquerias on one hand, and modern recipes on the other. The company is partnered with L Catterton, a leading consumer focused private equity firm that has invested in high-profile companies such as Equinox, Vitamin Water, and CorePower Yoga.

4 INVESTMENT HIGHLIGHTS PRICE: $7,777,778 | CAP: 4.50% | RENT: $350,000

PICTURESQUE, TROPHY REAL ESTATE – OPTIMAL LEASE STRUCTURE ✓ Brand New 15-Year Triple-Net (NNN) Ground Lease ✓ Absolute Triple Net (NNN) Lease with Zero Landlord Responsibilities ✓ Attractive Rent Increases: 10% Every 5 Years ✓ Two (2),Five (5)-Year Tenant Renewal Options ✓ E-Commerce Resistant Investment Opportunity ✓ Exceptional, Proven Operator | Corporate Guarantee ✓ Fast Casual Leading Performance – Velvet Taco’s AUV is More Than Double the Segment Average! LOCATED IN THE CENTER OF NEW GROWTH ✓ National and Regional Draw – Strong tenant mix of retailers such as Costco Wholesale, Target, Walmart, The Home Depot, Sam’s Club, Lifetime Fitness, and More ✓ Tremendous Freeway Visibility and Access: Situated on W Loop S (Loop 610), I- 69 and Westheimer Road, average daily traffic counts exceed 252,400, 349,000 and 60,000 vehicles, respectively. ✓ Irreplaceable Real Estate: Situated as a outparcel to The Galleria, Texas’ largest shopping center and fourth largest domain nationally, which experiences over 30 million visitors annually. ✓ Affluent Suburban Community: The average household income within a one-mile radius of the subject property exceeds over $150,000. ✓ City of Houston had a population of 2.3 million as of 2019, making it the fourth most populous U.S. city. Only New York, Los Angeles and Chicago have more residents. Houston has been Texas’ most populous city since 1930. ✓ The Houston MSA is home to 22 Fortune 500 headquarters, ranking fourth among metro areas. Many other Fortune 500 companies maintain U.S. administrative headquarters in Houston.

5 FINANCIAL OVERVIEW PRICE: $7,777,778 | CAP: 4.50% | RENT: $350,000 PROPERTY DESCRIPTION RENT SCHEDULE Property Name Velvet Taco Lease Year(s) Annual Rent Monthly Rent Rent Escalation (%) Property Address 2626 West Loop South Current - 1/25/2022 $350,000 $29,167 - City, State, ZIP Houston, TX 77027 1/25/2022 - 1/25/2023 $350,000 $29,167 - Store Opened January 25th, 2021 1/25/2023 - 1/25/2024 $350,000 $29,167 - Building Size 2,132 SF 1/25/2024 - 1/25/2025 $350,000 $29,167 - Lot Size +/- 0.23 Acres 1/25/2025 - 1/25/2026 $350,000 $29,167 - Type of Ownership Ground Lease 1/25/2026 - 1/25/2027 $385,000 $32,083 10.0% THE OFFERING 1/25/2027 - 1/25/2028 $385,000 $32,083 - Purchase Price $7,777,778 1/25/2028 - 1/25/2029 $385,000 $32,083 - CAP Rate 4.50% 1/25/2029 - 1/25/2030 $385,000 $32,083 - Annual Rent $350,000* 1/25/2030 - 1/25/2031 $385,000 $32,083 - LEASE SUMMARY 1/25/2031 - 1/25/2032 $423,500 $35,292 10.0% Property Type Net-Lease 1/25/2032 - 1/25/2033 $423,500 $35,292 - Tenant Taco Libre XXIII, LLC dba Velvet Taco 1/25/2033 - 1/25/2034 $423,500 $35,292 - $423,500 $35,292 - Guarantor Velvet Taco, Inc. 1/25/2034 - 1/25/2035 1/25/2035 - 12/31/2035 $423,500 $35,292 - Original Lease Term 15.0 Years Lease Commencement 1/25/2021 Lease Expiration 12/31/2035 Lease Term Remaining 15.0 Years Lease Type Triple-Net (NNN) Roof & Structure Tenant Responsible Rent Escalations 10% Every Five Years Options to Renew Two (2), Five (5) Year Options

* Rent is subject to change. Please contact listing brokers for more details.

6 FB SOCIETY

FB Society (formerly Front Burner Restaurants) is the restaurant innovation lab behind unique concepts such as Whiskey Cake, Legacy Hall, Mexican Sugar, Sixty Vines, Haywire and more. The company is driven by a thriving culture and constant pursuit of perfection. Its mission is to create and execute experiences never imagined. Known for its creativity, experiential approach, exquisite attention to detail, culinary innovation, and creation and development of emerging brands, the Society now boasts a diverse portfolio of 10 restaurant brands across 25 locations, a one-of-a-kind food hall, Modern Pour and Vestals premium catering, Bingham House event venue, Unlawful Assembly Brewing Co. and the non-profit Furlough Kitchen, with more concepts on the horizon.

Visionaries. Imaginarians. Creators. United in a common purpose; to create & execute experiences never imagined.

7 CONCEPT OVERVIEW

Velvet Taco, created by Dallas-based FB Society (formerly Front Burner Restaurants) and partnered with COMPANY OVERVIEW consumer-focused private equity fund L Catterton since 2016, is a one-of-a-kind fast casual taco restaurant with a 2011 20 globally-inspired menu that breaks the traditional bounds of Tex-Mex cuisine. YEAR FOUNDED Current # of Locations 1 Opening Soon in San Antonio

❑ Founded in 2011 with a single location in Dallas, Texas, Velvet Taco has quickly expanded to 19 locations across Dallas, Houston, Austin, $4.2M DALLAS, TX Atlanta, Charlotte, and Chicago. Given Velvet Taco’s proven concept and customer loyalty, the company is poised for significant growth in 2020 AUV Corporate HQ the coming years. Four locations debuted during the pandemic, including record opening week sales of more than $100,000 at the Addison and Plano stores. Eleven stores are planned for 2021, and L CATTERON www.velvettaco.com nine restaurants are in varying stages of development for 2022. Sponsor WEBSITE ❑ Velvet Taco model is designed to maximize guest satisfaction and ensure return visits. With a diverse, INTERNATIONAL MENU, high quality ingredients, scratch-made corn tortillas and a totally customizable menu, Velvet Taco connects with today’s consumer. The RECOGNITION model includes a fast-ordering process, an open kitchen with chicken cooking on a rotisserie, and a combination of fine dining cuisine in a “5 Must-Try Tacos from Velvet Taco’s Newest Location in Atlanta” SEPTEMBER 2019 fast casual format. There are no TVs. It’s all about the food! “The 50 Best Taco Spots in America” 2019 ❑ 100% Taco Centric, Visual Presentation is just as important as the flavor, seriously scratch made, global fusion of flavors & cultures, Nominated for “What is Dallas’ Best Taco Shop?” JULY 2019 relentless innovation, and serious vibe, makes Velvet Taco one of a kind. Named “7 Emerging Dallas Fast Casuals to keep on your Radar” JULY 2019

❑ In 2016, Velvet Taco received a significant strategic growth investment “Hot Concepts 2016: Globally-inspired fast casual concept from L Catterton, a private equity firm that specializes in growing Velvet Taco resonates with foodies and investors” consumer brands from a variety of industries. L Catterton’s investment SEPTEMBER 2016 has accelerated Velvet Taco’s growth while providing countless resources through the its strategic partnerships and experienced #3 Essential Dallas-Fort Worth Taqueria leadership team. The years following that transaction, the brand has #14 Best 50 Tacos in America more than quadrupled in size. #3 Most Instagrammed Restaurant in Dallas 8 https://www.qsrmagazine.com/fast-casual/velvet-taco IN RECENT NEWS Velvet Taco Aims to Disrupt the Fast-Casual Taco Space Off-premises orders grew by 90 percent in 2020!

No other brand is better positioned for growth in the “Our high average unit volume and industry-leading Dover said Velvet Taco fills a gap for those looking for a limited fast-casual taco category than Velvet Taco, CEO restaurant performance makes me feel confident that we chef-driven experience. The difference is that the brand Clay Dover said. will continue to provide a great ROI performance for our is 100 percent taco-centric, meaning it doesn’t do bowls, restaurants,” Dover said. “We have a great team in the wraps, or any other variation. The menu comprises 20 Velvet Taco considers its competitors to be Rusty Taco, Restaurant Support Office as well as in the field leading tacos, four sides, and one dessert. Everything in the Chronic Tacos, Torchy’s Tacos, and national behemoth our multi-unit, seasoned managers that have been well- restaurant is scratch-made without a freezer—kitchens Chipotle. Velvet Taco, which has 17 company-run stores trained. They’re very excited about growing our brand.” char their own tomatoes, roast meats, and marinate and one licensed location, is the smallest of the bunch, chicken. but there is reason for Dover’s optimism. Founded in Dallas in 2011, Velvet Taco has been majority-owned by private equity firm L Catterton since Some of the tacos are globally inspired, including the Velvet Taco's mode of operation transitioned smoothly 2016. In the years following that transaction, the brand best-selling Spicy Tikki Chicken (crisp tenders, spicy to COVID times. In many locations, the restaurant has a has more than quadrupled in size. Four locations tikka sauce, buttered cilantro basmati rice, raita crema, dedicated takeout window and drive-thru pickup window. debuted during the pandemic, including record opening Thai basil, and flour tortilla) and Korean Pork (angry Pre-COVID, sales outside the four walls mixed 37 week sales of more than $100,000 at the Addison and crema, kimchee slaw, pickled fresnos, cilantro, corn percent, but rose to 65 percent in 2020. That translated Plano stores. Eleven stores are planned for 2021, and tortilla). Velvet Taco also runs a Weekly Taco Feature to a 90 percent increase in off-premises orders. The nine restaurants are in varying stages of development that highlights different flavors throughout the year, such chain expects off-premises to hover around a mix of 55 for 2022. as Chicken Fried Oyster, Paneer Hash, and BBQ Ranch percent in 2021. Pork. Currently, Velvet Taco is located in the Dallas, Houston, “In trying times now, as well as in the future, we’ll make Chicago, Atlanta, Austin, and Charlotte markets. It’s “I’m passionate that Velvet Taco is an innovative sure that we get great tacos in the hands of everyone planning to expand into Nashville, San Antonio, and concept and uniquely positioned,” Dover said. “Between who is interested,” Dover said during the brand’s ICR college towns like Lubbock and College Station, Texas, our limited service, our ability to scale with takeout and Conference presentation earlier this month. and Norman, Oklahoma. On average, stores are 2,500 our digital positioning, we’ll be able to scale with growth square feet, but Velvet Taco does have a 400-square- and be well-positioned for consumers, not just in this Digital mixed 23 percent pre-COVID, but boosted to 42 foot food hall location that earns $30,000 in weekly time, but in the years to come.” percent in 2020—good for an 83 percent increase in sales. It’s also developing an 800-square-foot pickup digital sales. The brand believes digital will mix around only store. 30 percent this year as it develops a new loyalty program. Velvet Taco also launched a catering channel “We believe that we have great market share, not only in that’s projected to add $10 million in incremental sales in the existing markets that we have, but we’ve 2021. The program is COVID modified for individual commissioned a white space study with Sitewise in lunch orders as well as large group orders. which we’re going through and identifying opportunities throughout both the U.S. as well as internationally,” The chain boasts an AUV of $4.2 million and an average Dover said. “We believe there’s a great opportunity to check of $20.75. grow in the years to come.”

9 PROPERTY PHOTOS

Actual Property Photo

10 PROPERTY PHOTO

Actual Property Photo 11 PROPERTY PHOTO

Actual Property Photo 12 INTERIOR

Addison, TX Location 13 INTERIOR

Addison, TX Location 14 INTERIOR

Addison, TX Location 15 SURROUNDING AREA

GEORGE BUSH INTERCONTINENTAL AIRPORT RIVER OAKS 16.7 MILLION PASSENGERS ANNUALLY COUNTRY CLUB

RIVER OAKS DISTRICT

THE GALLERIA A SIMON MALL 375+ Stores, 30 Restaurants, 3 Office Towers, 2 Hotels & 1 Ice Rink

ADTC 349,000

195,000 Residents UNIVERSITY OF HOUSTON, TEXAS Within 3-Mile Radius SOUTHERN UNIVERSITY & RICE UNIVERSITY 8 MILES Total of 63,000 Students Enrolled

SUBJECT PROPERTY 16 SURROUNDING AREA

17 THE GALLERIA A plethora of amenities, including a full-size ice rink for recreational and figure skating, a state of the art children’s play area, two swimming pools, full-service national and international banks, multiple tax-free reimbursement locations for international guests, two tailor shops, several beauty salons, and a post office, continually serve a wide range of shopper delights.

There are nine valet parking stations and 13,000 parking spaces in seven garages to accommodate drivers. Nestled between two of the city’s most exclusive neighborhoods, River Oaks and Memorial, The Galleria is as internationally respected for its architectural style and imprint as its shopping panache. Modeled after the revered Galleria Vittorio Emanuele in Milan, built in 1867, The Galleria stands as one of the premier examples of a dynamic, mixed-use, urban environment. More than 7,000 business professionals in the adjoining office towers, offering 1.1 million square feet of office space, reap the benefit and convenience of having The Galleria just a short walk away.

For shopping, opportunities are endless at anchoring stores Neiman Marcus, Saks Fifth Avenue, Nordstrom, Macy’s and at high-fashion TEXAS’ LARGEST SHOPPING DESTINATION – favorites, such as: CELINE, CHANEL, Christian Louboutin, FENDI, Gucci, OVER 30 MILLION VISITORS ANNUALLY Lora Piana, Louis Vuitton, Prada, Saint Laurent, Tiffany & Co., Tod's and Valentino. Younger shoppers adore fashion-forward collections found at More than 30 million visitors each year seek the dynamic & fine H&M, Urban Outfitters and the trendy must-haves from AllSaints, Club shopping environment uniquely offered by The Galleria, Texas’ largest Monaco and Ted Baker. Galleria shoppers are assured all the latest trends shopping center and fourth largest domain nationally. International for home and lifestyle from Apple, Samsung Experience Store, and b8ta – guests and Houstonians blend seamlessly in the center while on just a few of the fine retailers that range from Aritzia to Zara. shopping excursions or entertaining guests at one of the signature eateries. In addition to the abundant array of shopping choices, The Galleria also has more than 60 dining options ranging from fine dining at Del Frisco's Spanning 2.4 million square feet of space, housing 400 fine stores and Double Eagle Steak House, Nobu, and Fig & Olive to casual favorites such restaurants, two high-rise Westin hotels, and three office towers, The as Blanco Tacos + Tequlia, and more. The Galleria is Houston’s most popular retail and tourist destination, Galleria is located at the corner of Westheimer Rd and Post Oak Blvd in meeting every style and taste. the heart of Uptown Houston. 18 LOCATION OVERVIEW SURROUNDING RETAIL & POINTS OF INTEREST The subject property is well-positioned as an outparcel to The Galleria, nestled amidst a strong tenant mix of retailers, hospitality accommodations, medical facilities and academic institutions. National retailers in the immediate area include Costco Wholesale, Target, Walmart, The Home Depot, Sam’s Club, Lifetime Fitness, as well as ADTC: 60,000 several others. Texas Medical Center (TMC), the largest medical complex ADTC: 46,500 in the world with over 106,000 employees and 9,200 patient beds, is located within a six-mile radius of the subject property. The site benefits from its proximity to several academic institutions. The most notable are the University of Houston, Texas Southern University and Rice University, ADTC: 252,400 which have a combined total enrollment exceeding 63,000 students, and are situated within an eight-mile radius of the subject Velvet Taco. George Bush International Airport (IAH) serves over 16,700,000 passengers annually and is located 22 miles from the subject property.

DEMOGRAPHICS Houston has a strong population with approximately 195,000 individuals residing within a three-mile radius of the property and more than 505,800 individuals within a five-mile radius. Additionally, this Velvet Taco property is situated in an extremely affluent suburban community with an average household income exceeding $150,500 within a one-mile radius.

TRAFFIC COUNTS This Velvet Taco property is positioned in a highly trafficked area along ADTC: 349,000 West Loop South, which feeds directly from one of the nation’s busiest thoroughfares, Loop 610. Loop 610 experiences an average daily traffic count of 252,400 vehicles, respectively. Intersecting with Loop 610 is Interstate-69 and Westheimer Road, which brings an additional 349,000 and 60,000 vehicles to the immediate area on average daily. Additionally, Post Oak Blvd runs parallel to the property, bringing in another 46,500 vehicles daily.

19 HOUSTON TEXAS MARKET OVERVIEW

Houston is the most populous city in the U.S. state of Texas, fourth-most populous city in the , most populous city in the Southern United States, as well as the sixth-most populous in North America, with an estimated 2019 population of 2,320,268. Located in Southeast Texas near Galveston Bay and the Gulf of Mexico, it is the seat of Harris County and the principal city of the Greater Houston metropolitan area, which is the fifth- most populous metropolitan statistical area in the United States and the second-most populous in Texas after the Dallas–Fort Worth metroplex, with a population of 7,066,141 in 2019. Houston is the southeast anchor of the greater megaregion known as the Texas Triangle. At 655 square miles, the City of Houston could contain the cities of New York, Washington, Boston, San Francisco, Seattle, Minneapolis and Miami.

Houston has grown to become the energy capital of the world. Houston is a globally recognized leader in life science, manufacturing, logistics, and aerospace. As these industries digitize, Houston is a hotbed of rapid technological development thanks to our access to customers and expertise. A thriving international city, Houston’s ties stretch to all corners of the world. The region’s geographic location makes it easy to move both goods and people around the globe. With one of the largest ports in the country and two international airports, Houston connects companies to the world. As a testament to its standing as a diverse and dynamic city, one in four residents is born abroad and more than 145 languages are spoken in Houston. In the mid-20th century, Houston's economy diversified, as it became home to the Texas Medical Center—the world's largest concentration of healthcare and research institutions—and NASA's Johnson Space Center, where the Mission Control Center is located.

GQ Magazine deemed Houston the "New Capital of Southern Cool" (2018).

Thrillist ranked Houston among "The 7 Most Impressive American Cities of 2017" for its diverse population, affordability and strong economy (2018).

WalletHub ranked Houston among 2018’s Most Fun Cities in America (2018). 20 HOUSTON OVERVIEW The Houston metro is located in southeastern Texas and composed of nine counties: Harris, Galveston, Brazoria, Fort Bend, Chambers, Montgomery, Austin, Liberty and Waller. The Gulf of Mexico, which borders the metro to the southeast, provides access to markets around the world via the Port of Houston, making it a prime location for exports. As local industries have diversified from oil to technology and healthcare, population growth has sprawled, primarily to the north and west, sustaining Houston’s position as the fifth-most populated metro in the nation with more than 6.9 million residents. The city of Houston is home to nearly 2.3 million residents. CORPORATE GROWTH Houston will remain a top destination for corporate relocations due to its business-friendly environment. Twenty-two Fortune 500 companies are headquartered in the metro. HIGHER EDUCATION Over 40 post-secondary educational institutions are located in the metro. Nearly 30 percent of residents have attained a bachelor’s degree, with 10 percent also holding a graduate or professional degree.

LOW COST OF LIVING, DOING BUSINESS Houston has a lower cost of living than many major metros, no state income tax and a median home price below the national level. Quality of Life Outdoor activities abound in Houston as a result of the city’s favorable location and climate. More than a dozen state parks and recreation areas lie within a short drive of Houston, as well as more than 500 parks and open spaces, along with various cultural venues and museums. Johnson Space Center is a popular tourist and educational destination. The metro is also known internationally for its medical community and is home to the Texas Medical Center, the largest of its kind in the world. Houston is home to four professional sports teams: the Houston Texans, the Houston Astros, the Houston Rockets and the Houston Dynamo. 21 TEXAS DEMOGRAPHICS 1 Mile 3 Miles 5 Miles POPULATION 2025 Projection 27,891 206,445 538,727 5 Miles 2020 Estimate 24,941 195,081 505,873 2010 Census 20,102 175,245 445,597 2000 Census 15,943 162,095 408,897 3 Miles INCOME Average $150,596 $145,136 $134,855 Median $91,220 $78,120 $75,007 1 Mile Per Capita $89,678 $69,246 $63,009

HOUSEHOLDS 2025 Projection 16,569 98,899 253,231 2020 Estimate 14,842 93,009 235,613 2010 Census 11,911 81,809 203,246 2000 Census 9,368 77,598 185,912

HOUSING 2020 $464,022 $512,584 $398,159

EMPLOYMENT 2020 Daytime Population 102,473 366,565 889,863 2020 Unemployment 3.48% 2.69% 2.65% 2020 Median Time Traveled 22 Mins 24 Mins 25 Mins

RACE & ETHNICITY

2020 2020 2020 2020 MEDIAN White 72.89% 68.65% 65.46% POPULATION: HOUSEHOLDS: MEDIAN AGE: HOUSEHOLD INCOME: Native American 0.04% 0.04% 0.05% 7.54 M 2.62 M 34.4 $64,800 African American 6.31% 6.62% 9.29% Growth Growth U.S. Median: U.S. Median: 2019-2024*: 2019-2024*: Asian/Pacific Islander 14.28% 9.97% 10.40% 10.8% 11.2% 38.1 $60,800 23 Information About Brokerage Services

HOUSTON, TEXAS: TROPHY URBAN CORE PROPERTY

TX Broker of Record: Timothy Speck Marcus & Millichap 5001 Spring Valley Road, Suite 100W Dallas, TX 75244 Tel: 972-755-5200 Fax: 972-755-5210 License: 432723

24 CONTACT

GLEN KUNOFSKY JAMES WESTERBERG MORGAN THAU [email protected] [email protected] [email protected] 212.430.5115 646.805.1449 212.430.5295 NY: 10301203289 NY: 10401302501 NY: 10401316152

HOUSTON, TEXAS: TROPHY URBAN CORE PROPERTY

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