Federal Services Building Offering Summary San Antonio | Texas

ACCENTURE FEDERAL SERVICES BUILDING OFFERING SUMMARY SAN ANTONIO | TEXAS

HOLLIDAY GP CORP. (“HFF”), A TEXAS LICENSED REAL ESTATE BROKER.

HFF has been exclusively retained by the Owner to offer qualified investors the opportunity to purchase Accenture Federal Services (“the Property”), a single tenant, investment grade asset 100% occupied by Accenture (S&P A+). This mission critical facility totals 89,928 square feet and has seen impressive capital and aesthetic upgrades in the last two years totaling approximately $5 Million. Of this $5 Million in upgrades, Accenture has contributed well over $3.3 Million, highlighting their long-term commitment to the building. Accenture’s lease structure features staggered lease rollover, increasing renewal probability while limiting potential investor’s rollover-exposure. This staggered lease rollover is coupled with in-place rental rates well below the competitive average. Situated along I-10, the Property boasts exceptional access and an infill profile, catering to decision makers and employees alike. The top-tier tenancy, impressive return potential and best-in-class location combine to offer potential investors a rare combination of stability and upside in one of the country’s strongest real estate markets.

PROPERTY OVERVIEW

LOCATION 10931 LAUREATE DRIVE SAN ANTONIO, TEXAS

SUBMARKET NORTHWEST

SIZE 89,928 SF, 3.69 ACRES

OCCUPANCY 100%

NO. OF TENANTS 1

TENANT ACCENTURE (S&P A+)

NO. OF STORIES 3

PARKING 493 SPACES (5.4/1,000 SF)

YEAR BUILT 1989

LEASE EXPIRATION SQ. FT. EXPIRATION ACCENTURE - ORIGINAL LEASE 46,588 SF 12/20 ACCENTURE - EXPANSION 43,340 SF 2/24 WEIGHTED AVERAGE LEASE TERM 4.5 YEARS

OFFERING SUMMARY 3 TENANT OVERVIEW

Accenture is a leading global professional services company providing a range of strategy, consulting, digital, technology and operations services and solutions. Accenture is partnered with 94 of the Fortune Global 100 and more than three-quarters of the Fortune Global 500. Employing over 425,000, Accenture plans to add 15,000 new jobs by 2020. Ranked number 305 on the Fortune 500 List, Accenture is engaged in over 40 industry lines. Fortune Magazine has identified Accenture as one of the “World’s Most Admired Companies” for 15 consecutive years.

The Property houses Accenture Federal Services, a subsidiary of Accenture LLP which has 7,200 employees in the U.S., 1,400 of which are in San Antonio. Marketing, client support and development are among the functions performed at this facility. Since the beginning of 2016, Accenture Federal services was awarded over $1 billion over 636 transactions, up from $204 million in 2008.

COMPANY HIGHLIGHTS

CORPORATE HQ DUBLIN, IRELAND

PUBLIC NYSE: CAN

MARKET CAP $89.3 BILLION

REVENUE $32.9 BILLION

GROSS PROFIT $10.3 BILLION

EBITDA $5.6 BILLION

CREDIT RATING A+ (S&P STOCK PRICE INCREASE OVER THE PAST YEAR, BEATING THE +23% INDUSTRY COMPETITIVE SET

OF ACCENTURE’S TOP 100 CLIENTS HAVE WORKED WITH 98 THEM FOR AT LEAST 10 YEARS

CONSECUTIVE APPEARANCES IN FORTUNE’S “WORLDS MOST 15 ADMIRED COMPANIES” LIST

PATENTS AND PATENT PENDING APPLICATIONS 5,000 IN 44 COUNTRIES

OFFERING SUMMARY 5 INVESTMENT HIGHLIGHTS PROFITABLE & GROWING TENANT WITH EXCEPTIONAL CREDIT • Accenture is rated A+ by S&P and ranked number 305 on the Fortune 500 List with more than three quarters of the Fortune Global 500 as clients

• Accenture had net revenues of $32.9 billion for fiscal 2016, with its stock gaining 22.5% over the past year, beating its industry competitive set

• With more than 411,000 employees across the globe, Accenture continues to grow, showcased by a recently announced plan to create 15,000 new jobs by 2020

• Accenture Federal Services has been growing rapidly, with Funds awarded increasing from $200M in 2008 to over $1B today NNN LEASE WITH BELOW MARKET RENTS • Current in-place rental rates of $16.37 are well below competitive buildings with above market parking ratios. These buildings average rental rates are $18.00 - $22.00/SF

• This below market rent profile, coupled with a best in class location offers reduced rollover risk and multiple value creation avenues upon lease renewal

• Annual 2% rental increases help to hedge against inflation and provides a 16% increase in NOI over a ten year hold period

• NNN lease structure minimizes landlord responsibilities and ensures consistently growing cash flow OFFERING SUMMARY 7

INVESTMENT HIGHLIGHTS STRONG ASSET PROFILE - HIGH RENEWAL PROBABILITY • Accenture’s recent expansion to the entire building showcases the company’s commitment to the Property, and increases the likelihood of renewal on their original lease term

• Staggered lease expirations further increase renewal probability as the logistics of Accenture moving half of their employees to a different property would prove cumbersome

• Accenture has made a significant out of pocket investment of $3,300,000 beyond current ownership’s contribution to upgrade the Property to their best-in-class corporate standards. Additionally, current ownership has made over $1,700,000 in capital investments to ensure the Property meets Accenture’s needs both through and beyond initial lease term

• With a basis well below replacement cost, significant recent capital investments and high tenant renewal probability, investors can project an ideal long term investment opportunity.

• Above market 5.4:1,000 SF parking ratio differentiates this Property from the competitive set and caters to Accenture’s above market parking requirement Ideal Location

• The Property is located in a central, infill location with access to both decision makers and employees alike

• The Property provides quick and easy access to two of San Antonio’s main thoroughfares, I-10 and Loop 1604 and also features a bus line that stops within walking distance of the Property

• Additional amenities are within walking distance of the Property including Gold’s Gym, Subway, Cracker Barrel, and a Holiday Inn Express

OFFERING SUMMARY 9 DOWNTOWN SAN ANTONIO

San Antonio Medical Center LEON VALLEY

R RD HUEBNE USAA Starbucks OAKLAND RESEARCH DR F ESTATES R E D E RIC

K S BU

R San Antonio G TownePlace Suites RD Police Dept by Marriott Bill Miller PRUE RD

Bar-B-Q L A Holiday Inn Home Gate U R Studios & Suites EA Gold’s Gym T E Cracker Barrel D R I-1 Rodeway Inn 0 F RO NT CLARKE DR AG E The Hill at Woodway RD Apartments DOWNTOWN SAN ANTONIO

San Antonio Medical Center LEON VALLEY

R RD HUEBNE USAA Starbucks OAKLAND RESEARCH DR F ESTATES R E D E RIC

K S BU

R San Antonio G TownePlace Suites RD Police Dept by Marriott Bill Miller PRUE RD

Bar-B-Q L A Holiday Inn Home Gate U R Studios & Suites EA Gold’s Gym T E Cracker Barrel D R I-1 Rodeway Inn 0 F RO NT CLARKE DR AG E The Hill at Woodway RD Apartments

OFFERING SUMMARY 11

ROBUST ECONOMY

• San Antonio’s economy is flourishing, with an unemployment rate of 3.5% - significantly below the Texas and U.S. averages of 4.6% and 4.7% respectively

• Business Costs are 20% below the national average coupled with a cost of living 14.6% below the national average

• Ranked in Forbes top 10 Fastest Growing Cities for 2016

• San Antonio is the third largest metro in Texas and the 25th largest metro in the U.S.

OFFERING SUMMARY 13 TESORO NUSTAR HARLAND CLARKE WELLS FARGO

VALERO

KCI

USAA SWBC

CPS ENERGY RACKSPACE JP MORGAN METHODIST HEALTHCARE CHASE SYSTEM IHEART MEDIA

SOUTHWEST RESEARCH INSTITUTE FROST BANK BILL MILLER BBQ HVHC HEB

CATERPILLAR

BOEING

ADDITIONAL INFORMATION DEBT STRUCTURES: JOHN TAYLOR KELSEY ROOP PATRICK MCCORD BENTLEY SMITH ROBERT WOOTEN Managing Director Senior Director Associate Analyst Managing Director [email protected] [email protected] [email protected] [email protected] [email protected] 210-386-0080 512-532-1927 512-532-1928 512-532-1971 512-512-1925

TOYOTA MOTOR MANUFACTURING 200 Concord Drive 500 West 5th Street Suite 540 Suite 1200 San Antonio, TX 78216 Austin, TX 78701 www.hfflp.com 210-386-0880 512-532-1900 512-532-1901

Holliday Fenoglio Fowler, L.P., HFF Real Estate Limited (collectively, “HFF”), HFF Securities L.P. and HFF Securities Limited (collectively, “HFFS”) are owned by HFF, Inc. (NYSE: HF). HFF and its affiliates operate out of 25 offices and are a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform including debt placement, investment advisory, equity placement, funds marketing, M&A and corporate advisory, loan sales and loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF.

HFF has been engaged by the owner of the property [properties] to market it [them] for sale. Information concerning the property [properties] described herein has been obtained from sources other than HFF, and neither Owner nor HFF, nor their respective equity holders, officers, employees and agents makes any representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all reference to age, square footage, income, expenses and any other property specific information are approximate. Any opinions, assumptions, or estimates contained herein are projections only and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a purchaser, and HFF, its partners, officers, employees and agents disclaim any liability that may be based upon or related to the information contained herein. Prospective purchasers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change.