±0.9 ACRES Hanover High Rise

2727 KIRBY

WESTHEIMER RD

WEST AVE

HOME VALUES $425K - $1.8M

KIRBY DR

VIRGINIA ST UNDER CONTRACT ±0.9 ACRES Hanover High Rise

STEEL ST

UNDER CONTRACT Future Residential Development

W ALABAMA ST

±0.9 acres near kirby & w. alabama

Land development opportunity in Upper Kirby, Houston, TX Price TBD by Market Offer Process EXCLUSIVE REPRESENTATION CONTACTS ARA Newmark has been exclusively retained to represent the Seller in the disposition of ±0.9 acres near Kirby and West Alabama (Property). All inquiries about the Property should be directed to ARA Newmark. Tim Dosch ARA is pleased to offer Houston’s premier development opportunity comprising ±0.9 acres of developable land in the Principal heart of the country’s most dynamic and thriving economy. Located in the Upper Kirby district in Houston, the Property is [email protected] adjacent to Hanover’s planned 40-story multifamily high-rise and future residential development. The Property is located O 713-955-3127 just south of River Oaks, Houston’s most traditional, highest priced, and most desirable residential neighborhood, and M 713-459-8123 offers immediate access to the city’s premier residential neighborhoods in addition to Downtown and major employment David Marshall centers. The Property boasts the area’s highest rated public and private schools within walking distance as well as a Principal booming amenity retail base down the street. The site is unique in its suitability for office, hospitality, multifamily, seniors, [email protected] retail, and for sale residential. O 713-955-3126 M 713-206-1574

OFFER PROCESS Tom Dosch Property is being offered on an “All Cash” basis to qualified purchasers. Prospective purchasers will have the opportunity Principal [email protected] to visit the Property through scheduled tours with ARA Newmark. Please do not contact the onsite management directly. O 713-955-3125 M 713-557-4455

OFFER REQUIREMENTS Clark Dalton Offers should be presented in the form of a non-binding Letter of Intent, and must include at least: Associate Pricing [email protected] Due Diligence and Closing Timeframe O 713-955-3122 M 832-449-2223 Earnest Money Deposit Description of Debt/Equity Structure ARA, A Newmark Company Qualifications to Close 1700 Post Oak Blvd Development Plans 2 BLVD Place, Suite 400 Houston, TX 77056 Purchase terms shall require cash to be paid at closing. Offers should be delivered to the attention of Tim Dosch, David Marshall, or Tom Dosch via fax or email.

DUE DILIGENCE INFORMATION To access the due diligence information please visit the Property website at: arausa.listinglab.com/KirbyLandSite

2 ±0.9 ACRES NEAR KIRBY & W ALABAMA 610 NRG CENTER TEXAS MEDICAL CENTER ±0.9 ACRES IN RICE UNIVERSITY RICE VILLAGE - 300+ shops - Elaine Turner, Kendra Scott, Ann Taylor, WEST UNIVERSITY PLACE HOME VALUES Banana Republic, White House Black UPPER KIRBY$500K - $3M+ $600K - $6M+ Market, Chico’s, Talbots, and more

4 Property Information

6 Taxes & Demographics

7 Area Highlights

KIRBY DR 12 In the News

Market Overview UNDER CONTRACT 18 Future Residential Development W ALABAMA ST UNDER CONTRACT 20 Brokerage Information Hanover High Rise ±0.9 ACRES STEEL ST

2727 KIRBY WEST AVE - 398 luxury apartments - 190k SF retail - Cru, Pondicheri, Eddie V’s Prime Seafood, Del Frisco’s Grille VIRGINIA ST PROPERTY DETAILS

±0.9 Acres in the Heart of Houston TRACT DETAIL • Unrestricted redevelopment opportunity in Houston’s Upper Kirby District LOCATION: Virginia St and Steel St in the NWQ of Kirby Dr & W. Alabama St • Adjacent to Hanover’s planned luxury high-rise mixed-use development and future residential development LAT., LONG. 29.739477, -95.420565

• Surrounded by high end retail and dining, including a Whole Foods Market directly ACREAGE: ±0.9 Acres across Kirby Drive from the Property APN: 101500300009 • Within five miles of Houston’s strongest employment markets: Central Business District, Greenway Plaza, the Galleria/Uptown District, and the Texas Medical Center LEGAL INFORMATION LTS 9 THRU 15 & TRS 16 & 19C BLK 30 COLLEGE HEIGHTS • Upper Kirby is renowned in Houston for its dining and entertainment: the district UTILITIES: City of Houston boasts two theater venues, high-end retail shops, and some of Houston’s finest restaurants, including Fleming’s, Grace’s, Pondicheri, Giacomo’s Cibo e Vino, and RESTRICTIONS None Trenza SCHOOL ZONE: Houston ISD

WEST AVE STEEL STREET, ADJACENT TO PROPERTY 2727 KIRBY

4 ±0.9 ACRES NEAR KIRBY & W ALABAMA Site Plan

Future High Rise 325’ Multifamily (Hanover Co.)

119’ 1.65 Acres Available 119’ 0.9 Acres

325’

Future Residential Development 3.2 Acres

±0.9 ACRES NEAR KIRBY & W ALABAMA 5 TAXES & DEMOGRAPHICS

TAX RATES 10 Taxing Authority 2015 Rate Houston ISD 1.1967000 Harris County 0.4192300 610 GALLERIA / UPTOWN DISTRICT Harris Co Flood Cntrl 0.0273300 HIGHLAND VILLAGE Port of Houston Authy 0.0134200 Harris Co Hosp Dist 0.1700000 Harris Co Educ Dept 0.0054220 Hou Community College GREENWAY 0.1019420 PLAZA City of Houston 0.6011200 HC ID 3 0.1500000 LAMAR HIGH SCHOOL TOTAL 2.685164 RIVER OAKS $1M - $20M+

AVERAGE HOUSEHOLD INCOME WESTHEIMER RD WITHIN 3 MILES OF THE HOME VALUES PROPERTY IS OVER $120,000$1.3M - $1.7M VIRGINIA ST ±0.9

STEEL ST ACRES KIPLING ST WEST AVE

DEMOGRAPHICS W ALABAMA ST 0-1 mi 0-3 mi 0-5 mi UNDER CONTRACT UNDER CONTRACT Future Residential Hanover High Rise 2727 KIRBY 2015 Est. Population 21,247 173,146 471,415 Development 2015-2020 Est. Population Growth 4.46% 7.54% 6.35% 2015 Est. Average Household Income $119,565 $124,137 $101,557 KIRBY DR 2015 Est. Median All Owner-Occupied Housing $477,180 $444,221 $358,538 Values

6 ±0.9 ACRES NEAR KIRBY & W ALABAMA UPCOMING DEVELOPMENTS

Hanover’s Mixed-Use High Rise RENDERING OF HANOVER’S HIGH RISE • 40-story multifamily development will have retail on the ground floors

• Land is currently under contract, with development scheduled to start Q1 2016

• ARA Newmark brokered the land sale

Kirby Grove • 11-acre urban activity center alongside the $12 million redevelopment of the 5.6-acre Levy Park

• Redevelopment of the park will feature curated, year- round programming, native landscaping, playscapes, water features, a performance pavilion, an event lawn, a community garden and a dog park

• Avenue Grove, a 330,000-square foot luxury mid-rise residential tower with 270 apartment homes, is under construction and scheduled for completion by the end of 2015

• One Grove Street, a 225,000-square foot Class-A office building with 25,000 square feet of ground floor retail space, is scheduled for completion by the end of 2015

• Lead tenant with 63,000 square feet is The Vitol Group, one of the world’s largest independent energy trading companies

• BoyarMiller, a Houston-based law firm, has leased 24,500 square feet

• PlainsCapital Bank of Dallas and Velite benchmark Capital Management have also signed leases

±0.9 ACRES NEAR KIRBY & W ALABAMA 7 UPPER KIRBY HIGHLIGHTS

WEST AVE Upper Kirby • Ideally located minutes from Greenway Plaza, Uptown District, and Downtown, and the Texas Medical Center

• Mix of affluent residential neighborhoods and urban mixed-use developments

• Live-work-play environment with high end retail, posh boutiques, and many of Houston’s finest restaurants, including Pondicheri, Fleming’s, Grace’s, Giacomo’s Cibe e Vino, Chuy’s, Carrabbas, Turquoise Grill, BB’s Cafe, Goode Co. Seafood and Goode Co. Taqueria, The Queen Vic Pub & Kitchen, and Kata Robata

• Upper Kirby features two theater venues: AD Players and The Music Box

• Whole Foods Market is located across the street and featuring an in-store bar serving draft beers

• Bed Bath & Beyond and Ulta are less than one block from the Property West Ave • Houston’s first intown mixed-use development

• 398 luxury apartment homes

• 190,000 square feet of retail space with tenants such as Tootsies, Sam and Lilli, Q Custom Clothier, Rye 51, Azur West, Ivannia boutique and Ivory Bridal Atelier

• Houses some of Houston’s most popular restaurants including Cru, Pondicheri, Eddie V’s Prime Seafood, and Del Frisco’s Grille

8 ±0.9 ACRES NEAR KIRBY & W ALABAMA 610

10 MEMORIAL PARK S SHEPHERD DR

ALLEN PKWY RIVER OAKS COUNTRYCLUB

RIVER OAKS $1M - $20M+ RIVER OAKS SHOPPING CENTER - 320K SF retail - River Oaks Theater - Sur La Table, Ann Taylor, Gap, Luke’s Locker, Sunglass Hut, Barnes & Noble, Pier 1 Imports, and more

WEST AVE - 398 luxury apartments WESTHEIMER RD - 190k SF retail 2727 KIRBY - Cru, Pondicheri, Eddie V’s Prime Seafood, Del Frisco’s Grille

KIPLING ST

VIRGINIA ST UNDER CONTRACT ±0.9 ACRES Hanover High Rise

STEEL ST UNDER CONTRACT Future Residential Development

W ALABAMA ST

KIRBY DR

±0.9 ACRES NEAR KIRBY & W ALABAMA 9 RETAIL & ENTERTAINMENT HIGHLIGHTS

Greenway Plaza (<1 mile) Highland Village (1.6 miles) • Edwards Stadium 24 Movie Theater • 15-acre high-end shopping and dining

• Dining includes Colina’s, Oishii’s, Bullritos, Buffalo Wild Wings, and Tony’s • Features Houston’s only Apple Flagship store, the No. 1 Restoration Hardware in the country, Starbucks, Central Market, Pottery Barn, Banana Republic, J. Crew, Crate & Barrel, Anthropologie, Lululemon Athletica, Williams-Sonoma, Victoria’s Secret, River Oaks Shopping Center (1.1 miles) Chico’s, Cole Haan, and Lucky Brand • Over 320,000 square feet of retail, entertainment, and dining • Dining includes Smith & Wollensky, P.F. Chang’s, RA Sushi, UP Restaurant, and • Features the historic River Oaks Theater, 14 restaurants, and over 75 stores including Escalante’s Sur La Table, Ann Taylor, Gap, Luke’s Locker, Men’s Wearhouse, Pier 1 Imports, Barnes & Noble, Talbots, and Sunglass Hut • Features a farmer’s market on Saturday mornings

• Dining includes Marble Slab Creamery, Starbucks, La Madeleine Country French Cafe, California Pizza Kitchen, and La Griglia The Galleria/Uptown District (2.5 miles) • More than five million square feet of retail space

Rice Village (1.6 miles) • Approximately 1,000 stores • Over 300 shops in the immediate 16-block area • Boasts Houston’s most prestigious shopping including stores such as Neiman • Boutiques and eclectic shops as well as high-end clothing stores such as Chico’s, Marcus, Cartier, Hermes of Paris, Saks Fifth Avenue, Louis Vuitton, Ethan Allen, and Talbots, Elaine Turner, Guess, White House Black Market, Banana Republic, and Houston’s only Nordstrom Kendra Scott

• Dining options include a variety of food from all over the world including Japanese, Chinese, French, Italian, Mexican, Spanish, Mediterranean, and Vietnamese

GERALD D. HINES WATERWALL PARK

10 ±0.9 ACRES NEAR KIRBY & W ALABAMA EMPLOYMENT HIGHLIGHTS

Greenway Plaza (<1 mile) Texas Medical Center (2 miles) • Ten-building complex totaling over 4.25 million square feet of Class A office space • Largest medical center in the world currently undergoing a $7 billion expansion and boasts over 25,000 employees • Eighth largest business district in the country • Major employers include Oxy USA, Transocean, Koch Industries, and Investco • One of the most stable, high income areas in the US • Master-planned mixed-use 52-acre site with premier frontage along US 59 • Encompasses 1,345 acres and 45.8 million square feet • Recently sold to Cousins for $1.3 billion • Houston Methodist currently undergoing $1.2 billion expansion and Texas Children’s • Class A, tier 1 availability is at an all-time low at 2.9% spending $506 million for expansion

• The Texas Medical Center hosts 106,000 employees, 50,000 students, and 21 The Galleria/Uptown District (2.5 miles) hospitals • Over 82,000 employees and 23 million square feet of office space

• Home to over 2,000 companies including Apache Corporation, BHP Billiton, Cameron Central Business District (3 miles) International Corporation, Hines REIT, and Weatherford International, Ltd. • 150,195 employees

• 1.3 million square feet is under construction • Hosts 12 of Houston’s 26 Fortune 500 companies

• $1 billion in renovations are underway • Major employers (number of employees) include Chevron (7,000), Shell Oil Company (6,500), Chase Bank (4,695), KBR (3,175), El Paso Corporation (2,200), CenterPoint • BHP recently executed a 560,000-square foot lease which represents a significant Energy (2,040), Hess Corporation (1,870), United Airlines (1,840), and Wells Fargo commitment by one of the largest companies in the world (1,695)

• Several projects (mixed-use and office) under construction and recently completed: • Home to Minute Maid Park (Houston Astros) and Toyota Center (Houston Rockets)

• BLVD Place: Phase II of BLVD Place includes 119,000 square feet of retail space • Hosts the 1.2 million-square-foot George R. Brown Convention Center and 92,000 square feet of office space; Phase III of BLVD Place includes a 750,000-square-foot office building for Apache Corp. • Two new office towers coming soon to downtown being developed by Hines (41 stories) and Chevron (50 stories, 1.7 million square feet, and 1,752 additional • BBVA Compass Tower: offers 300,000 square feet and was the first tower to be employees) built in the Uptown District since 1983 (recently completed)

• 3009 Post Oak: Skanska recently completed their 300,000-square-foot office tower

• BHP Billiton Tower: Developing a 30-story, 560,000-square-foot tower (Opening 2016)

±0.9 ACRES NEAR KIRBY & W ALABAMA 11 IN THE NEWS

Developer plans Upper Kirby high-rise project

August 11, 2014 Hanover, which is under contract on the 1.65-acre Nancy Sarnoff, Houston Chronicle property, is scheduled to close early next year and begin construction in the summer of 2015, Ott said. A locally based developer that builds upscale apartment towers in urban locations around Houston and across Architecture firm Solomon Cordwell Buenz is designing the country is planning its newest project in the Upper the building. That is the same architect Hanover is Kirby area, potentially adding more than 300 units to a using for another highrise it is building on Montrose at site along Kirby Drive. Hawthorne. That tower will break ground this month. Details are still being completed, but the project is expected to rise more than 30 stories and have restaurants on the ground floor, David Ott, development “THIS IS PUTTING partner of the Houston based Hanover Co., said late Monday. DENSITY WHERE THE The company is seeking approval from the city to develop the project with reduced building lines along Kirby and Kipling streets in order to allow the building CITY WOULD LIKE to sit back farther than required along Steel Street, which is lined by a canopy of decades old live oak trees. TO SEE IT.” patios along Kirby and in the plaza, which will connect The company’s intention, Ott said, is to do “everything Steel to Kipling streets. Ott notes that the building will possible to save the trees.” be developed across from another residential highrise, DAVID OTT, HANOVER CO. 2727 Kirby. “We’re going to set back further than is required on Steel to give the existing tree canopy as much room as “This is a major thoroughfare, a high-density corridor,” possible to survive,” he said. The company is also nearing completion on a building he said. “This is putting density where the city would under construction behind what will be a Whole Foods like to see it.” The highrise is being planned for land that houses Market in the BLVD Place development on Post Oak two retail buildings and an older apartment complex. Ott said his company has met with nearby businesses Boulevard near San Felipe. A portion of the apartment complex is not part of and the Upper Kirby District. The company has a meeting Hanover’s project. For its newest project, Ott said the company plans to planned with Ellen Cohen, Houston City Council member add more trees along Kirby, as well as some on Kipling for the area. The tower will sit just off Kirby on the western side of where there are none. the property, with a retail building fronting Kirby and The city’s planning commission is expected to consider creating a pedestrian plaza between the two structures. He envisions the project as a “walkable, urban Hanover’s request at its meeting on Aug. 21. environment,” where restaurants will spill onto outdoor Groundfloor retail will be in both buildings.

12 IN THE NEWS IN THE NEWS

Upper Kirby office tower tops out, signs more tenants

May 5, 2015 Olivia Pulsinelli, Houston Business Journal

One Grove Street, an office building in the future mixed-use development Kirby Grove, recently topped out and is 60 percent preleased, Houston-based developer Midway Cos. said May 5. The 16-story, 225,000-square-foot, Class A tower fronts Richmond Avenue and Levy Park, which will be the heart of the new Upper Kirby development. The building is expected to open this fall. Houston-based Munoz Albin Architecture & Planning Inc. designed the office building, and Houston-based Kirksey serves as the architectural firm of record. Houston-based Burton Construction is the general contractor. The Houston Business Journal has previously reported that the Netherlands-based Vitol Group was the initial tenant on the project. More recently, HBJ reported PlainsCapital Bank of Dallas — which plans significant growth in Houston— and Houston-based natural gas hedge fund Velite Benchmark Capital Management — whose founder is retiring— are taking space in the project. Vitol has leased nearly 63,000 square feet, PlainsCapital has 15,000 square feet, and Velite has 7,300 square feet. Houston law firm BoyarMiller also has leased approximately 24,500 square feet. Undisclosed tenants have claimed another 22,000 square feet, according to Midway. Munoz Albin also designed the multifamily project, Avenue Grove, and Houston- Houston’s Colvill Office Properties is handling leasing for the building, which also based House+Partners Architecture & Planning LLP serves as the architectural firm of has 25,000 square feet of ground-floor restaurant space available. record. The eight-story project includes 270 rental units starting at 620 square feet, plus 15 two-story “brownstones” averaging nearly 1,800 square feet each. Tribble & Elsewhere in the 11-acre Kirby Grove, the Upper Kirby Redevelopment Authority is Stephens is the general contractor. renovating Levy Park, Midway said, and construction is underway on multifamily and ground-floor restaurant elements. Houston-based landscape architecture firm The Office of James Burnett designed the $10 million park renovations, which will include native landscaping, playscapes, water features, a performance pavilion, an event lawn, a community garden and a dog park. The project will also include curated, year-round programming.

IN THE NEWS 13 IN THE NEWS

Bank’s Houston headquarters to anchor new Greenway Plaza building

February 20, 2015 Olivia Pulsinelli, Houston Business Journal Region Bank’s Houston headquarters will anchor a new 11-story building in the Greenway Plaza “Regions Financial Center will help us area. TRC Capital Partners (formerly The Redstone Cos.), Hansen Partners and Barbour Investments accomplish our goals and better serve the are developing the 180,000-square-foot building, which will be called Regions Financial Center. There will be 162,000 square feet of office space and 18,000 square feet of retail. area,” Colburn said in the statement. Birmingham, Alabama-based Regions will occupy the top three and a half floors, totaling 56,000 square feet, as well as 3,500 square feet on the retail level for a full-service customer banking “The facility will give us increased visibility, center. Regions also is providing construction financing. along with the capacity to house nearly CBRE Group Inc. (NYSE: CBG), Regions’ real estate and facilities management partner, facilitated the lease on the property at 3773 Richmond Ave. CBRE’s Ron McWherter of Houston and Sim 200 associates, representing all of our Wilson of Chattanooga represented Regions. The project is designed by Houston-based Philip Ewald Architects Inc. with Austin-based STG lines of business, in one of the most vibrant Design as architect of record. Sugar Land-based E.E. Reed Construction is the general contractor, and St. Louis-based HOK is the structural engineer. Houston-based Red Oak Design Group is the areas in Houston.” landscape architect. Construction began in December, and the project is expected to deliver in April 2016. Hansen Partners will lead the leasing effort for Regions Financial Center. In a statement, Ryan Colburn, Regions’ Houston president, attributed Regions’ move to the Greenway area to the growth the bank has seen in Houston. Recently, Regions formally identified Houston, as well as other Texas markets including Dallas and Austin, as long-term priority growth markets for the company, according to the statement. “Regions Financial Center will help us accomplish our goals and better serve the area,” Colburn said in the statement. “The facility will give us increased visibility, along with the capacity to house nearly 200 associates, representing all of our lines of business, in one of the most vibrant areas in Houston.” Birmingham-based Regions Financial Corp. (NYSE: RF) is the parent company of Regions Bank, which is the 14th-largest bank in the Houston area, based on its $1.55 billion in local deposits as of June 30, 2014.

14 IN THE NEWS IN THE NEWS

Greenway Plaza renovates to entice new tenants upon Exxon’s exit

February 27, 2015 will be 92 percent, even after Exxon vacates. service customer banking center at a new 11-story, Roxanna Asgarian, Houston Business Journal “Still very healthy,” Boykin said. 180,000-square-foot building, which will be called Regions Financial Center. One of Greenway Plaza’s buildings will drop from 94 Boykin joined Cousins in 2013, the same year the percent leased to 52 percent leased when Irving, Texas- company bought Greenway Plaza for $950 million Houston-based TRC Capital Partners, Houston- based Exxon Mobil Corp. (NYSE: XOM) moves to its new from Fort Worth-based Crescent Real Estate Holdings based Hansen Partners and Barbour Investments campus later this year. LLC, where Boykin was serving as managing director. are developing the building, which will hold 162,000 square feet of office space and 18,000 square feet of Exxon will vacate 215,000 square feet of 3 Greenway He said they’d previously done renovations on 1 and retail. Plaza’s 518,578-square-foot total, but Atlanta-based 2 Greenway Plaza, which are now 100 percent and 97 Cousins Properties (NYSE: CUZ) sees this as an percent leased, respectively. Birmingham, Alabama-based Regions will occupy opportunity for much-needed upgrades. “So we feel we get excellent returns on investment the top three and a half floors. Construction began in December and is expected to be complete in April 2016. “At Greenway Plaza, we are always placing money in when we do these upgrades,” Boykin said. areas to maintain Class A standards,” said Bob Boykin, Boykin said plans are being studied for a renovation of Regions is providing construction financing. CBRE’s Ron senior vice president at Cousins. the Greenway Plaza food court and an additional fitness McWherter of Houston and Sim Wilson of Chattanooga represented Regions in the lease. The building, originally built in 1973, hasn’t seen center for the complex, which he said could begin this an upgrade of its common areas since 1998, Boykin year. The project was designed by Houston-based Philip said. Ziegler Cooper is the architect for the renovation In other Greenway Plaza news... Ewald Architects Inc. with Austin-based STG Design as architect of record. Sugar Land-based E.E. Reed and Trademark Construction is the contractor. Both A new building in the Greenway Plaza area has clenched Construction is the general contractor, St. Louis-based companies are Houston-based. an anchor tenant. HOK is the structural engineer, and Houston-based Red And although the building will increase its vacancy, the Regions Bank has taken 56,000 square feet, as well Oak Design Group is the landscape architect. Hansen overall occupancy rate for the 10 buildings – and nearly as 3,500 square feet on the retail level, for a full- Partners will lease the building. 4.4 million square feet – that make up Greenway Plaza

IN THE NEWS 15 IN THE NEWS

Wave of new hotels, convention district improvements rush to make Super Bowl 2017 deadline

March 20, 2015 the market, these rooms will just begin to meet the additional retail and restaurants, and improvements to Roxanna Asgarian, Houston Business Journal increased demand on the horizon for hotel rooms the facade of the George R. Brown Convention Center. downtown. Bob Eury, the president of Central Houston, For anyone who has been downtown recently, it’s hard “There was a strong consensus that we don’t need said the Bayou City has always had a very small number to miss the cranes and construction happening all over to expand Brown, we need to get the hotels, the of rooms downtown compared to other major cities. the district. amenities, and the feeling of front-door attractiveness “In the hotel sector downtown, we only had four on the Brown,” Eury said. “The Brown is functionally a And with the 2017 Super Bowl coming to Houston, properties in the year 2000 with 1,800 rooms,” Eury very good building, but it’s also for the most part a very much of the construction is in the hospitality sector, as said. “It’s very exciting to think we are in the vicinity of large box with a lot of red doors.” projects rush to finish in time for the influx of football about 25 properties and 7,500-8,000 rooms. fans. And with the current improvements being made to the “For a large city, that’s still not a gigantic number; we convention center and surrounding areas, downtown Downtown Houston is seeing a wave of new hotel would benefit from even more,” Eury added. stakeholders are hoping to give Houston an edge in construction — five projects with a total of 1,906 rooms attracting convention business. are underway. With a current total of 5,500 hotel rooms For comparison, downtown Atlanta has 10,000 hotel downtown, the total number of rooms is set to increase rooms within walking distance of its convention center. “The competition is very stiff, but Houston is coming by more than a third by the 2017 Super Bowl. Nick Massad, CEO of American Liberty Hospitality and up. With these changes we have in progress, Houston chairman of the Greater Houston Convention & Visitors is doing better in terms of being competitive, compared Houston’s second convention center hotel, the $357 Bureau, said Houston’s lack of accommodations to a couple decades ago,” Eury said. “It doesn’t hurt million Marriott Marquis, is expected to be complete in downtown has hindered its competitiveness in the race to have a Final Four and a Super Bowl every once in a the third quarter of 2016. It will hold 1,000 rooms on 30 for convention business. while, too.” floors. “One of our biggest reasons for lost business in The convention market is extremely lucrative, Massad Redevelopment of the former Savoy Hotel, which had conventions is that we have an inadequate room said, providing an economic boost to retail, hospitality been vacant since 1988, into a 215-room Holiday Inn package, so we have to push out to the Galleria and and entertainment in the area and also to the general Hotel is underway, and redevelopment of the Humble other areas to accommodate,” Massad said. tax base. Tower Apartments into a 166-room SpringHill Suites Hotel is expected to be completed this summer. Massad said when American Liberty Hospitality’s “Every external dollar that comes into Houston from current project is complete, the company will have 700 a conventioneer, that dollar rotates about seven or American Liberty Hospitality is developing a $50 rooms downtown. eight times. People spend their money, leave it in our million, 300-room, dual-branded Hampton Inn and economy and go home,” Massad said. Homewood Suites that’s expected to be complete in “We obviously are very bullish on downtown,” Massad February. And Midway’s Hotel Alessandra, clocking in said. “It’s a huge industry and it’s one that we haven’t had at 21 stories and 225 rooms, is underway and expected There’s also currently $1.5 billion worth of improvements as many tools in our toolbox as we needed, and we’re to be complete by the Super Bowl in 2017. being made in the convention district, according to getting them now,” Massad said. “We’re going to be able to showcase that to the rest of the world through Meeting demand Houston First, including modifications to Avenida de las Americas, a new parking garage and office building, the Super Bowl and they’ll be able to see all the new Downtown experts are saying that far from saturating things we’ve created. We’re going to get to show off.”

16 IN THE NEWS Hospitality projects downtown

1. JW Marriott: Pearl Hospitality redeveloped the 1910 Carter Building into a 328-key hotel that was completed in September 2014 to much fanfare.

2. Hampton Inn & Homewood Suites: American Liberty Hospitality is building this 14-story, 168-key Hampton Inn connected to a 132-key Homewood Suites. It should be completed in the first quarter of 2016.

3. Holiday Inn: K&K Hotel Group is overseeing the redevelopment of the Savoy Hotelinto a 215-key Holiday Inn Hotel. It should be complete in the second quarter.

4. Hotel Alessandra: Demolition work started in January after a redesign on Midway Cos.’ 25-story, 225-key hotel. It should be complete in the fourth quarter of 2016.

5. Marriott Marquis Houston Convention Center Hotel: Rida Development Corp. is behind this 29-story, 1,000-key hotel that should be complete in the third quarter of 2016.

6. SpringHill Suites: RLJ Lodging Trust is redeveloping the Humble Building Apartments into a 166-key hotel. It should be complete in the second quarter.

7. Nau Center for Texas Cultural Heritage: This 2-story, 60,000-square-foot cultural center was put on hold four months after construction started.

8. Convention Center Hotel: A 15-story boutique hotel is planned atop the GHP building by Houston First Corp.

9. Hilton Garden Inn: WEDGE Group Inc. plans to build a 12-story, 230-key hotel.

IN THE NEWS 17 HOUSTON MARKET OVERVIEW

Houston’s Workforce ∙∙ Over 6,000 manufacturers employ more than 250,000 skilled workers AN INTERNATIONAL CITY ∙∙ More than 89,000 engineering and architecture professionals in a variety of fields Houston’s business cost is 2.0% below the U.S. average, drawing ∙∙ 31.6% of the nation’s jobs in oil and gas extraction foreign trade, investment, and business to the region. Houston ∙∙ Over 165,000 high-tech (energy, medicine, and aerospace) professionals hosts: ∙∙ More than 90 Foreign Consulates Economic Diversity ∙∙ 31 active Foreign Chamber of Commerce and Foreign Trade ∙∙ Houston has over 150 companies involved in aircraft or space vehicle Associations manufacturing, space research, and technology; their total output ranks as one of ∙∙ 21 foreign banks, representing 9 nations Houston’s largest internationally traded commodities ∙∙ More than 752 foreign-owned firms ∙∙ The Port of Houston is ranked first in the U.S in foreign tonnage, equivalent to 10.4 percent of the nation’s total seaborne import tonnage ∙∙ More than 437 companies with branches in 144 other nations ∙∙ Breakthrough research and development is taking place in every key biotechnology cluster in Houston: agricultural, biomedical, oncology, environmental, genomics, medical, devices and nanotechnology ∙∙ Houston is one of only two major metros that have more manufacturing jobs now than prior to the recession ∙∙ Houston’s Texas Medical Center is the largest in the world, with 106,000 employees, 7,000 patient beds, and a total area of 1,345 acres

The Energy Industry 26 Fortune 500 companies in Houston

As reported by the Greater Houston Partnership (GHP), less than 5% of employment is directly tied to oil extraction and Houston strongly outperformed the U.S. for employment and GDP growth the last time oil fell by over $100/barrel. Marcus & Millichap predict lower oil prices will add momentum to the already strong employment outlook. Growth Top Destination for College Graduates will be strongest in construction, retail, professional services, healthcare, food services, and public education sectors.

The GHP estimates that the Houston metropolitan area will add 62,900 jobs in 2015. “For the third time in three decades, Houston is about to enter an era of relatively low oil prices,” GHP’s 2015 Employment Forecast states. “Yet by all measures, Houston is better off now than it was in the ‘80s, ‘90s or even the past decade. In the short term, growth may slow, but it always rebounds.” #1 Fastest Growing City in America

18 MARKET OVERVIEW HOUSTON MARKET OVERVIEW 6.6 Million Residents and Climbing HEALTHCARE SERVICES account for one in ten jobs in the The Houston MSA was ranked first of America’s Fastest Growing Cities by Forbes in 2015 with a projected growth rate of 1.74%. Houston region and 9.5% of the HOUSTONThe metro— THEarea isECONOMY expected to AT have A GLANCEover 7.4 million residents by 2020 and over 10 million by 2040. local payroll

Unemployment Rate - Houston, Texas and U.S. NATURAL GAS 11 is fueling a strong construction cycle along the U.S. Gulf Coast for 10 Strong Employment Gains chemicals, LNG and agriculture 9 The Houston metro area gained 8 INTERNATIONAL TRAVEL 55,700 jobs in the 12 months ending June 2015 according to the Texas will grow as Hobby Airport opens 7 Workforce Commission. its International Terminal in 6 2015, generating 10,000 jobs % Civilian Labor Force Sectors which posted gains include 5 Leisure and Hospitality, Business RETAIL SALES 4 HOUSTON—THE ECONOMY AT A GLANCEServices, Health Care, Other Services,

in Houston grew by 30.3% from 3 and Information. 2009-2013, fueled by population '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 ployment and 4.9 percent of total wages. These sectors are part of Houston’s economic growth and rising incomes Houston Texas U.S. Source: Texas Workforce Commissionbase and as such support a significant number of jobs in the secondary sectors—retail, restaurants, real estate, etc. These jobs are at risk as well. The impact of the downturn on HOUSING INVENTORY Spot Crudethese and sectors Natural won’t Gas Pricesbe apparent until the end of this year or early next year. Monthly Averages remains tight at a reported Long Term Economic Outlook Remains Bright 160 On the Brighter Side — De- 16 2.8 months according to the spite the current slump in the Real Gross Area Product Forecast Houston Association of Realtors Houston-The Woodlands-Sugar Land MSA The 140Houston metro area’s real grossenergy area industry,product is projectedHouston’s 14 $ Billions* to more than double between 2015long and-term 2040, outlo accordingok remainsto the Perryman120 Group. The gross area productbright. isThe expected metro to growarea’s from real 12 $1,154.1 AUTO SALES $1,022.1 $504.1 billion to $1.15 trillion with(i.e., an averagenet of inflation) annual growth gross rate area experienced the best June on 100 10 $887.2 $754.0 record in 2015, selling 34,424 of 3.4%. The industries with the fastestproduct annual (GAP) growth is projected rates from to

WTI, WTI, $ barrel 80 8$627.4 vehicles (+8.7% from last year) 2015 to 2040 are services, manufacturing,more than and double mining. between ’15

$504.1 Natural $ Gas, /mcf and ’40, according to the recent- 60 6 “While the end of the oil surge willly affectreleased performance forecast by in Raythe nearPer- CONSTRUCTION term,”40 the Perryman report states,ryman, “the Houstonthe Waco area’s-based economy econo- 4 is far more diversified than in mistdecades who past has andstudied the downturnthe U.S., permits for the City of Houston '15 '20 '25 '30 '35 '40 totaled $8.3 billion in the 12 in oil 20prices is not likely to derailTexas economic and performancemetro economies for an 2 months ending June 2015 1 Source: The Perryman Group, Summer 2015 extended0 period of time.” since the ’70s. * '09 constant0 dollars '05 '06 '07 '08 Perryman'09 '10 forecasts'11 '12 Houston’s'13 '14 '15 '16 WTI Natural Gas MARKET OVERVIEW 19 Source: U.S. Energy Information Administrationreal GAP to grow from $504.1 billion in ’15 to $1.15 trillion in ’40―an average annual growth rate of 3.4 percent. The industries with the fastest annual growth rates from ’15 to ’40 are: services (3.9 percent), manufacturing (3.8 percent), and mining (3.3 percent). These fastest-growing industries are also the largest industry sectors by dollar value. Mining is the largest contributor to Houston’s GAP in ’15 at $138.8 billion (23.1 percent August 2015 ©2015, Greater Houston Partnership Page 12 of total GAP) followed by Population and Employment Houston-The Woodlands-Sugar Land MSA services at $113.4 billion 12 (18.9 percent) and manufac- 9.9 10 9.2 turing at $109.5 billion 8.4 7.7 (18.2 percent). 8 7.1 6.5 “While the end of the oil 6 4.6 4.0 4.3 Millions 3.4 3.7 surge will affect perfor- 4 3.0 mance in the near term,” the 2 Perryman report states, “the 0 Houston area’s economy is '15 '20 '25 '30 '35 '40 far more diversified than in Population Employment decades past and the down- Source: The Perryman Group, Summer 2015

1 The Perryman Economic Forecast: Long-Term Outlook for the United States, Texas, Major Metropolitan Areas, and Regions, is available for purchase from The Perryman Group, 800-749-8705 or [email protected].

INFORMATION ABOUT BROKERAGE SERVICES 10-10-11

Approved by the Texas Real Estate Commission for Voluntary Use Texas law requires all real estate licensees to give the following information about brokerage services to prospective buyers, tenants, sellers and landlords. Information About Brokerage Services

efore working with a real estate broker, you intermediary. The written consent must state who will should know that the duties of a broker pay the broker and, in conspicuous bold or underlined depend on whom the broker represents. If print, set forth the broker’s obligations as an you are a prospective seller or landlord intermediary. The broker is required to treat each (owner)B or a prospective buyer or tenant (buyer), you party honestly and fairly and to comply with The should know that the broker who lists the property for Texas Real Estate License Act. A broker who acts as sale or lease is the owner’s agent. A broker who acts an intermediary in a transaction: as a subagent represents the owner in cooperation (1) shall treat all parties honestly; with the listing broker. A broker who acts as a buyer’s agent represents the buyer. A broker may act as an (2) may not disclose that the owner will accept a intermediary between the parties if the parties price less that the asking price unless authorized in consent in writing. A broker can assist you in locating writing to do so by the owner; a property, preparing a contract or lease, or obtaining financing without representing you. A broker is (3) may not disclose that the buyer will pay a price greater than the price submitted in a written offer obligated by law to treat you honestly. unless authorized in writing to do so by the buyer; and IF THE BROKER REPRESENTS THE OWNER: (4) may not disclose any confidential information or The broker becomes the owner’s agent by entering any information that a party specifically instructs the into an agreement with the owner, usually through a broker in writing not to disclose unless authorized in written - listing agreement, or by agreeing to act as a writing to disclose the information or required to do so by subagent by accepting an offer of subagency from the The Texas Real Estate License Act or a court order or if listing broker. A subagent may work in a different real the information materially relates to the condition of the estate office. A listing broker or subagent can assist property. the buyer but does not represent the buyer and must place the interests of the owner first. The buyer With the parties’ consent, a broker acting as an should not tell the owner’s agent anything the buyer intermediary between the parties may appoint a person would not want the owner to know because an who is licensed under The Texas Real Estate License owner’s agent must disclose to the owner any Act and associated with the broker to communicate material information known to the agent. with and carry out instructions of one party and another person who is licensed under that Act and IF THE BROKER REPRESENTS THE BUYER: associated with the broker to communicate with and The broker becomes the buyer’s agent by entering carry out instructions of the other party. into an agreement to represent the buyer, usually through a written buyer representation agreement. A If you choose to have a broker represent you, buyer’s agent can assist the owner but does not you should enter into a written agreement with the represent the owner and must place the interests of broker that clearly establishes the broker’s obligations the buyer first. The owner should not tell a buyer’s and your obligations. The agreement should state agent anything the owner would not want the buyer how and by whom the broker will be paid. You have to know because a buyer’s agent must disclose to the the right to choose the type of representation, if any, buyer any material information known to the agent. you wish to receive. Your payment of a fee to a broker does not necessarily establish that the broker IF THE BROKER ACTS AS AN INTERMEDIARY: represents you. If you have any questions regarding A broker may act as an intermediary between the the duties and responsibilities of the broker, you parties if the broker complies with The Texas Real should resolve those questions before proceeding. Estate License Act. The broker must obtain the written consent of each party to the transaction to act as an

Real estate licensee asks that you acknowledge receipt of this information about brokerage services for the licensee’s records.

Buyer, Seller, Landlord or Tenant Date

Texas Real Estate Brokers and Salespersons are licensed and regulated by the Texas Real Estate Commission (TREC). If you have a question or complaint regarding a real estate licensee, you should contact TREC at P.O. Box 12188, Austin, Texas 78711-2188 , 512-936-3000 (http://www.trec.texas.gov) TREC No. OP-K 20 ±0.9 ACRES NEAR KIRBY & W ALABAMA DISCLAIMER

Prospective purchasers are hereby advised the Owners (“Owner”) of the Property are Any obligations to prospective purchasers that the Owners may have with respect to the soliciting offers through Apartment Realty Advisors (“ARA”), which may be accepted or Properties are limited to those expressly set forth in a fully executed Purchase Agreement rejected by the Owners at the Owners’ sole discretion. between the parties. Prospective purchaser’s sole and exclusive rights against the Owners, with respect to this prospective transaction, the Properties, or information provided herein Any solicitation of an offer for the Properties offered hereunder will be governed by this or subsequently, shall be limited to those remedies expressly provided in an executed Offering, as it may be modified or supplemented. Prospective purchasers are advised that Purchase Agreement, which shall not survive the closing. Further, in no event shall as part of the offer process, the Owners will be evaluating several factors including the prospective purchasers have any claims against the Owners, ARA, or any of their respective experience and financial qualifications of the purchasing entity. affiliates for any damages, liability, or causes of action relating to the Purchase Agreement.

The Owners shall have no obligation to accept any offer from any prospective purchaser. Prospective purchasers are not to construe the contents of this Offering or any prior or The Owners reserve the right to withdraw the Properties from consideration at any time prior subsequent information communications from the Owners or any of their respective to final execution of a Purchase Agreement. officers, employees or agents as legal, tax or other advice. Prior to purchasing, prospective purchasers should consult with their own legal counsel and personal and tax advisors to This Offering document is furnished to prospective purchasers for the purpose of determining determine the consequences of an investment in the Property and arrive at an independent whether to invest in the Properties offered hereby. The information contained herein, or any evaluation of such investment. other related information provided by the Owners, may not be reproduced, redistributed or used in whole or in part without the prior written consent of the Owners. No commission or finder’s fee shall be payable to any party by the Owners nor any affiliate or agent thereof in connection with the sale of the Properties unless otherwise agreed to by No person has been authorized to give any information or make any representation the Owners in writing. or warranty, either expressed or implied and, if given or made, such information or representation must not be relied upon. Acquisition of properties such as the these offered hereunder involves a high degree of risk and are suitable only for persons and entities of substantial financial means. While the Owners and ARA have no reason to believe that the information provided herein or in subsequent information updates delivered to potential purchasers hereunder contains any material inaccuracies, neither the Owners nor ARA nor any of the Owners’ or ARA’s respective subsidiaries, affiliates, companies, or the officers, directors, employees, agents and representatives of any such entities, etc., make any representations or warranties, expressed or implied, as to the validity, accuracy or completeness of the information provided or to be provided, and nothing herein shall be deemed to constitute a representation, warranty or promise by any such parties as to the future performance of the Properties or any other matters set forth herein.

±0.9 ACRES NEAR KIRBY & W ALABAMA 21 45

DOWNTOWN 10

RIVER OAKS SHOPPING CENTER - 320K SF retail - River Oaks Theater - Sur La Table, Ann Taylor, Gap, Luke’s Locker, Sunglass Hut, Barnes & Noble, Pier 1 Imports, and more SHEPHERD DR

WESTHEIMER RD

2727 KIRBY HOME VALUES $599K - $4.3M WEST AVE - 398 luxury apartments - 190k SF retail - Cru, Pondicheri, Eddie V’s Prime Seafood, Del Frisco’s Grille UNDER CONTRACT W ALABAMA ST Hanover High Rise STEEL ST VIRGINIA ST UNDER CONTRACT Future Residential KIRBY DR KIPLING ST Development

±0.9 ACRES

HOME VALUES $425K - $1.8M

HOME VALUES $1.3M - $1.7M