3871 Stagg Dr, GATEWAY Click the Icon to View Beaumont, TX 77701 PLAZA Exclusive Video Presentation CONFIDENTIAL OFFERING MEMORANDUM

140,970 Vehicles Per Day

Included 26,571 SF | 10 Units

Included 13,332 SF | 2 Units

Renovated 2017 | Not Included

285,862 Total SF | +/- 23.09 Acres www.dumesfalk.com BOR: Timothy Speck CONFIDENTIALITY & DISCLAMER

THIS IS A BROKER PRICE OPINION OR COMPARATIVE MARKET ANALYSIS OF VALUE AND SHOULD NOT BE CONSIDERED AN APPRAISAL. This information has been secured from sources we believe to be reliable, but we make no representations or warranties, express or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap. All rights reserved.

NON - ENDORSEMENT NOTICE

Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation's logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

NET- LEASED DISCLAIMER

The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has not and will not verify any of this information, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided.

As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Marcus & Millichap expressly denies any obligation to conduct a due diligence examination of this Property for Buyer.

Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors.

Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine to your satisfaction with the suitability of the property for your needs.

Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer’s legal ability to make alternate use of the property.

By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment Services and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this net leased property. TABLE OF CONTENTS

INVESTMENT01 OVERVIEW

PRICING & 02FINANCIAL ANALYSIS

DEMOGRAPHICS03 & MARKET OVERVIEW INVESTMENT OVERVIEW01 Building 1

5 Building 1

6 Building 3

Building 2 (Adjacent to Building 1)

Building Location

7 Building 3 (Behind Building 2)

Building Location 8 Two Outpads (Included) +/- 0.92 Acres Each (Not Included)

(Not Included) (Not Included)

(Not Included)

(Not Included) (Not Included)

Outpad 2 Included | +/- 0.92

Outpad 1

Included | +/- 0.92 9 Christus Southeast Texas – St. Elizabeth

The Event Centre Central Senior High School

Subject Property Conn’s Warehouse Baptist Hospitals Of Southeast Texas King Middle School

Conn’s Corporate Pathways Office Learning Center

Ozen High School

56,349 Residents | 100,412 Employees $58,455 Average Household Income 10 Beaumont Country Club

Christus Southeast Knife River Corporation Texas – St. Elizabeth

Fire Museum of Texas Edison Museum

Art Museum of Southeast Texas Beaumont Industrial Area

Baptist Hospitals Harbor Island Beaumont Municipal of Southeast Texas Athletic Complex 1,620 employees

ExxonMobil Refinery 2,400 acres | Employees: 2040 people Monsignor Kelly & 1000 contractors Catholic High School

Subject Property Lamar University 14,103 enrollment Ozen High School 1,410 employees

Spindletop Park

Lamar University • Texas Home Health America LP Enrollment: 14,100 Ozen High School • Exxon Mobile Refinery Enrollment: 1,100 • Memorial Hermann Hospital Monsignor Kelly High School 107,010 Residents | 154,201 Employees • Baptist Hospitals of SE Texas Enrollment: 450 $60,091 Average Household Income • Beaumont Refinery 11 265 Miles

12 PRICING & FINANCIAL ANALYSIS02 GATEWAY PLAZA PRICING DETAIL & OPERATING DATA MAJOR TENANTS

LEASE LEASE TENANT GLA EXPIRATION TYPE Stage 50,000 01/31/2025 NNN

Conn Appliances 44,750 08/31/2021 NNN

Vista College 38,750 05/30/2020 NNN

Furniture Mart 20,373 12/31/2020 Gross

MAJOR EMPLOYERS

EMPLOYER # OF EMPLOYEES Texas Home Health America 5,540 Exxon Mobile Refinery 3,040 SITE DESCRIPTION Memorial Hermann Baptist Hospital 1,759 Baptist Hospital of SE Texas 1,700 Gateway Plaza Beaumont Refinery 1,545 3871 Stagg Dr, Beaumont, TX 77701 Dawson Marine 1,000

Built | Renovated 1956 | 1995, 2004 Gross Leasable Area (GLA) 285,862 SF DEMOGRAPHICS 1-Mile 3-Miles 5-Miles Current Occupancy 95.47% 2017 Estimate Population 4,768 56,349 107,010 Lot Size +/- 23.09 Acres 2017 Estimate Households 1,753 22,084 41,534 Ownership Fee Simple Daytime Population 14,517 100,412 154,201 Average Household Income $47,745 $58,455 $60,091

14 GATEWAY PLAZA RENT ROLL AND TENANT LEASE SUMMARY

Lease Dates Annual Square % of Monthly Annual Changes Changes Lease Renewal Bldg.* Tenant Name Rent Feet GLA Comm. Exp. Rent Rent On To Type Options Per SF Conn Appliances 44,750 15.65% 04/01/2001 08/31/2021 $5.50 $20,510 $246,125 09/01/2021 $268,500 NNN Three, Five-Year Jason's Deli 4,800 1.68% 09/01/1990 08/30/2022 $11.50 $4,600 $55,200 09/01/2019 $57,600 NNN One, Five-Year Paris Nail Spa 2,140 0.75% 07/01/2008 08/30/2023 $15.34 $2,736 $32,832 None None Gross None Mira’s Boutique 3,665 1.28% 12/01/2017 11/30/2019 $12.96 $3,958 $47,491 None None Gross None Naomi's Fashions 3,000 1.05% 08/01/2011 07/31/2021 $10.00 $2,500 $30,000 None None Gross None Diamond Fashions 2,486 0.87% 01/01/2019 12/31/2019 $9.65 $2,000 $24,000 None None Gross None Supreme Beauty 11,388 3.98% 07/01/2000 06/30/2023 $9.48 $9,000 $108,000 07/01/2023 $113,400 Gross One, Five-Year Dollar Tree 11,325 3.96% 06/01/2004 06/30/2024 $8.75 $8,258 $99,094 07/01/2019 $104,756 NNN None 1 Texas State Optical 2,300 0.80% 05/01/1992 06/30/2019 $12.50 $2,396 $28,750 07/01/2019 $29,900 NNN One, Two-Year Rent A Center 4,800 1.68% 08/01/1996 08/31/2019 $14.52 $5,808 $69,696 None None NNN None Stage 50,000 17.49% 07/01/1971 01/31/2025 $6.50 $27,083 $325,000 02/01/2025 $375,000 NNN One, Five-Year Furniture Mart 20,373 7.13% 01/01/2018 12/31/2020 $7.36 $12,500 $150,000 01/01/2021 $165,000 Gross Two, Five-Year Catherine's 4,950 1.73% 06/01/1973 01/31/2022 $10.50 $4,331 $51,975 None None NNN None Education Futures 38,750 13.56% 01/01/2010 05/30/2020 $7.21 $23,282 $279,387 06/01/2020 $321,292 NNN One, Five-Year Z C Chinese Restaurant 15,000 5.25% 04/01/2015 04/30/2020 $9.60 $12,000 $144,000 05/01/2020 $158,400 Gross Three, Five-Year Jerry Nelson's Restaurant (Dark) 18,686 6.54% 04/01/1998 04/30/2020 $9.63 $15,000 $180,000 05/01/2020 Base+CPI Gross Three, Five-Year Church of God 2,118 0.74% 10/01/2012 MTM $9.95 $1,756 $21,073 None None Gross None Swing Out Civic Club 4,950 1.73% 12/01/2007 MTM $6.56 $2,705 $32,456 None None NNN None Damel Braiding 1,200 0.42% 02/01/2012 MTM $13.00 $1,300 $15,600 None None NNN None Beaumont Finance 960 0.34% 06/01/2006 06/30/2020 $15.12 $1,209 $14,512 None None NNN None 2 Quality/Maxie Nails 1,954 0.68% 04/01/2004 06/30/2020 $13.44 $2,188 $26,262 None None Gross None Artistic Pleasure Tattoo 1,406 0.49% 03/01/2017 02/28/2019 $9.82 $1,150 $13,800 None None Gross None Credit Central 2,500 0.87% 10/01/2016 12/31/2019 $10.56 $2,200 $26,400 None None Gross None Nova Healthcare 6,080 2.13% 01/01/2012 06/30/2022 $10.50 $5,320 $63,840 None None NNN One, Five-Year You Only Live Once 6,988 2.44% 01/01/2012 02/28/2020 $10.30 $6,000 $72,000 03/01/2020 $74,160 Gross One, Five-Year 3 US Imaging 6,344 2.22% 06/01/2001 10/31/2026 $7.53 $3,979 $47,748 11/01/2026 $53,478 NNN One, Five-Year Farmers Insurance (Parking Easement) N/A N/A 12/01/1996 MTM N/A $200 $2,400 None None Gross None Pho Seasons (Parking Easement) N/A N/A 10/01/2010 MTM N/A $200 $2,400 None None Gross None Vacant (Building One) 4,383 1.53% Vacant (Building One) 3,327 1.16% Vacant (Building Two) 2,768 0.97% Vacant (Building Two) 2,635 0.92% Vacant (Not Leasable) 846 0.30% Vacant (Remeasure) (1,010) (0.35%) Total Occupied 272,913 95.47% $184,170 $2,210,041 Total Vacant 12,949 4.53% $0 $0 Total 285,862 100.00% $184,170 $2,210,041 *The Building color tabs represent which building that group of tenants is occupying. (See key on the next page.) 1515 Building Key Building One Building Two Building Three Parking Easement Street 140,970 VPD140,970 th South 11 South

College Street

16 TENANT OVERVIEW

ABOUT STAGE STORES Stage Stores is a department store company specializing in retailing brand name apparel, accessories, cosmetics, footwear, and housewares throughout the United States. The corporate office is located in Houston, Texas. Stage Stores operates 793 stores in 42 states under the Bealls, Palais Royal, Peebles, Stage, Gordmans, and Goody's nameplates. The company operates stores primarily in Midwestern, Southeastern, Mid-Atlantic, and New England regions. Stores can be found in shopping malls and centers or in standalone locations. #291 on Forbes List of America’s Best Employers LEASE SUMMARY Check Website here: https://www.forbes.com/companies/stage- stores/#3a5b76506a16 Lease Type Triple-Net (NNN) Tenant Specialty Retailers, Inc. Rent Increases (Option) February 1, 2025 - $375,000 Guarantor Corporate 790+ Ticker NYSE: SSI LOCATIONS Rent Commencement July 1, 1971 Lease Expiration January 31, 2025 Lease Term Remaining Six Years Original Lease Term Fifteen Years HEADQUARTERED IN Renewal Options One, Five-Year Houston, TX C.AM. Reimburses over 2007 Base Year - $2.75/SF Total Real Estate Taxes Reimburses over 2007 Base Year - $2.75/SF Total Insurance Reimburses over 2007 Base Year - $2.75/SF Total Early Termination Tenant can terminate lease at any point that sales are below $75/SF FOUNDED 1988 RENT SCHEDULE

YEAR ANNUAL RENT MONTHLY RENT RENT/SF 11/14/2007 – 01/31/2018 $300,000 $25,000 $6.00 02/01/2018 – 01/31/2025 $325,000 $27,083 $6.50 14,500+ EMPLOYEES OPTION SCHEDULE YEAR ANNUAL RENT MONTHLY RENT RENT/SF 02/01/2025 – 01/31/2030 $375,000 $31,250 $7.50 17 TENANT OVERVIEW

ABOUT CONN’S HOMEPLUS Conn's Inc. is an American furniture, mattress, electronics and appliance store chain headquartered in The Woodlands, Texas, United States. The chain has stores in Alabama, Arizona, Colorado, Georgia, Kansas, Louisiana, Mississippi, Nevada, New Mexico, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, and Virginia. Within Texas Conn's has stores in Greater Houston, the Dallas/Fort Worth Metroplex, Greater San Antonio, Greater El Paso, Greater Corpus Christi, Southeast Texas, and South Texas. Learn More About Conn’s LEASE SUMMARY HomePlus at The Website Lease Type Triple-Net (NNN) Below: Visit Safelite.com - https://ir.conns.com/ Tenant CAI, LP. Rent Increases (Option) September 1, 2021 - $268,500 Guarantor Corporate Ticker NASDAQ: CONN 110+ Rent Commencement April 1, 2001 Lease Expiration August 31, 2021 LOCATIONS Lease Term Remaining Over Two Years Original Lease Term Ten Years Renewal Options Three, Five-Year HEADQUARTERED IN C.AM. Pro-rata Share Real Estate Taxes Pro-rata Share The Woodlands, TX Insurance Pro-rata Share

RENT SCHEDULE FOUNDED YEAR ANNUAL RENT MONTHLY RENT RENT/SF 04/01/2001 – 03/31/2006 $156,625 $13,052 $3.50 1934 04/01/2006 – 11/30/2016 $190,187 $15,849 $4.25 08/16/2016 – 08/31/2021 $246,125 $20,510 $5.50

OPTION SCHEDULE YEAR ANNUAL RENT MONTHLY RENT RENT/SF 09/01/2021 – 08/31/2026 $268,500 $22,375 $6.00 2,800+ EMPLOYEES 09/01/2026 – 08/31/2031 $313,248 $26,104 $7.00 09/01/2031 – 08/31/2036 $358,000 $29,833 $8.00 18 TENANT OVERVIEW

ABOUT VISTA COLLEGE For more than 30 years, Vista College has been helping students get the training they need to pursue work in their chosen fields. They offer two ways for you to learn: online and on-campus. Their mission is: “To provide high-quality, specialized career preparation or enhancement to meet and cope with technological changes resulting in employment and career success.” Recognized as One of the

LEASE SUMMARY 2017 Top Military Friendly Lease Type Triple-Net (NNN) Schools in the U.S. Check Website here: https://www.vistacollege.edu/vista-experience/about/ Tenant Education Futures Group, LLC. Rent Increases (Option) June 1, 2020 - $321,292 Guarantor Corporate Ticker N/A 6 Rent Commencement January 1, 2010 ACCREDITED Lease Expiration May 30, 2020 PROGRAMS Lease Term Remaining Over One Year Original Lease Term Five Years Renewal Options One, Five-Year C.AM. Reimburses Pro-rata Share, 3% CAP on CAM Expenses HEADQUARTERED IN Real Estate Taxes Pro-rata Share Insurance Pro-rata Share El Paso, TX

RENT SCHEDULE FOUNDED YEAR ANNUAL RENT MONTHLY RENT RENT/SF 01/01/2010 – 12/31/2011 $124,368 $10,364 $7.21* 2004 01/01/2012 – 05/30/2020 $279,384 $23,282 $7.21 *Rent/SF is the same for both term periods due to the tenant expanding their SF from 17,250 to 38,750 on 6/17/2011. OPTION SCHEDULE MORE THAN YEAR ANNUAL RENT MONTHLY RENT RENT/SF STUDENTS 06/01/2020 – 05/30/2025 $321,292 $26,774 $8.29 4,701

19 TENANT OVERVIEW

ABOUT FURNITURE MART Since 1998, Furniture Mart has been committed to delivering the best prices, best selection and best service to each of the communities they serve. Their mission is to be a market leader in home furnishings by providing a pressure-free shopping experience and immediate availability of merchandise, while exceeding the expectations of every customer. Owned and operated in Louisiana and Texas, Find Out More About the Furniture Mart is the fastest growing furniture chain in the region, now with nine locations. Furniture Mart specialize in a wide assortment of furniture, including Fastest Growing Furniture bedrooms, living rooms, dining rooms, children's furniture and mattresses, as well as a large variety of accessories to complete your interior design. Store in the Region Visit Furnituremarts.com - https://www.furnituremarts.com/ LEASE SUMMARY Lease Type Gross 9+ Tenant Furniture Mart, LLC. LOCATIONS Rent Increases (Option) January 1, 2021 - $165,000 Guarantor N/A Ticker N/A Rent Commencement January 1, 2018 HEADQUARTERED IN Lease Expiration December 31, 2020 Lease Term Remaining Nearly Two Years Gretna, LA Original Lease Term Three Years Renewal Options Two, Five-Year C.AM. Does not reimburse Pro-rata Share Real Estate Taxes Does not reimburse Pro-rata Share Insurance Does not reimburse Pro-rata Share FOUNDED Early Termination Tenant can terminate lease after 15 months with 6 months notice 1998 RENT SCHEDULE

YEAR ANNUAL RENT MONTHLY RENT RENT/SF 01/01/2018 – 12/31/2020 $150,000 $12,500 $7.36 95% In-Stock OPTION SCHEDULE Showroom Merchandise YEAR ANNUAL RENT MONTHLY RENT RENT/SF 01/01/2021 – 12/31/2025 $165,000 $13,750 $8.10 01/01/2026 – 12/31/2030 $181,500 $15,125 $8.91 20 GATEWAY PLAZA PRICING DETAIL & OPERATING DATA

THE OFFERING CURRENT OPERATING DATA Gateway Plaza Scheduled Base Rental Income $2,210,041 Expense Reimbursement Income 3871 Stagg Drive, Beaumont, TX 77701 CAM $50,545 Insurance $47,888 Real Estate Taxes $159,466 List Price $25,500,000 Management Fees $32,563 CAP Rate 7.15% Total Reimbursement Income $290,461 Effective Gross Revenue $2,500,502 Price/SF $89 Less: Operating Expenses ($677,159) Net Operating Income $1,823,343 Net Operating Income $1,823,343 Gross Leasable Area (GLA) 285,862 SF Less: Debt Service (Interest Only) ($637,056) Net Cash Flow After Debt Service 11.86% $1,186,287 Occupancy 95.47%

LOAN INFORMATION Operating Expenses Current Per/SF Electric/ Gas $20,982 $0.07 Loan Type Assumption Water/ Sewer $521 $0.00 Master Servicer Wells Fargo Trash Removal $3,087 $0.01 Start Date March 19, 2015 Landscaping $11,561 $0.04 Maturity Date April 6, 2025 Grounds Maintenance $23,825 $0.08 General R&M $37,233 $0.13 Maintenance

First Principal & Interest Payment May 6, 2020 Common Area Contract Labor $10,640 $0.04 Original/ Current Loan Amount $15,500,000 Pest Control $2,222 $0.01 Interest Rate 4.11% Total CAM Expenses $110,070 $0.39 Interest Only Period | Term | Amortization (Years) 5 |10 | 35 2017 Insurance Premiums $104,285 $0.36 IO Debt Service (Monthly/ Annual) $53,088/ $637,056 2018 Real Estate Taxes* $347,266 $1.21 Management Fee (3% of EGR) $74,038 $0.26 Est. Reserves $41,500 $0.15 Total Expenses $677,159 $2.37 *2018 taxes based on assessed value of $12,418,530

21 GATEWAY Software: ARGUS Ver. 15.0.1.26 ARGUS MODEL Schedule Of Prospective Cash Flow PLAZA In Inflated Dollars for the Fiscal Year File: Gateway Plaza V2 Beginning 5/1/2019 Property Type: Retail Portfolio: Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Date: 1/12/19 For the Years Ending Apr-2020 Apr-2021 Apr-2022 Apr-2023 Apr-2024 Apr-2025 Apr-2026 Apr-2027 Apr-2028 Apr-2029 Apr-2030 Time: 5:04 pm Ref#: AYP Potential Gross Revenue Base Rental Revenue $2,224,268 $2,527,748 $2,586,729 $2,610,809 $2,617,821 $2,681,189 $2,893,834 $2,968,173 $3,022,619 $3,075,216 $3,134,790 Absorption & Turnover Vacancy (20,812) (127,213) (12,384) (3,050) (25,722) (66,858) (17,151) (3,367) (120,481)

Scheduled Base Rental Revenue 2,203,456 2,400,535 2,574,345 2,610,809 2,614,771 2,655,467 2,826,976 2,951,022 3,022,619 3,071,849 3,014,309

Expense Reimbursement Revenue Electric/ Gas (CAM) 9,827 12,914 14,116 14,524 15,666 16,075 16,128 16,767 17,194 17,526 18,048 Water/ Sewer (CAM) 245 322 349 360 389 401 398 416 428 436 448 Trash Removal (CAM) 1,447 1,899 2,078 2,137 2,307 2,363 2,373 2,464 2,532 2,579 2,655 Landscaping (CAM) 5,416 7,115 7,777 8,001 8,631 8,855 8,885 9,238 9,476 9,656 9,942 Ground Maintenance (CAM) 11,163 14,662 16,029 16,492 17,792 18,250 18,315 19,038 19,526 19,899 20,496 General R&M (CAM) 17,442 22,914 25,046 25,776 27,800 28,520 28,618 29,756 30,516 31,101 32,030 Contract Labor (CAM 4,985 6,550 7,156 7,368 7,946 8,151 8,179 8,503 8,721 8,887 9,152 Pest Control (CAM) 1,039 1,368 1,495 1,539 1,661 1,702 1,709 1,776 1,823 1,856 1,910 Insurance 48,851 64,181 70,153 72,194 77,871 79,877 80,157 83,332 85,473 87,104 89,709 Taxes 162,674 230,700 252,495 259,675 278,967 286,046 287,366 298,358 305,892 311,754 320,873 Management Fee 33,717 49,929 58,798 60,252 64,537 66,334 68,163 73,100 75,027 76,025 77,379 Reserves

Total Reimbursement Revenue 296,806 412,554 455,492 468,318 503,567 516,574 520,291 542,748 556,608 566,823 582,642

Total Potential Gross Revenue 2,500,262 2,813,089 3,029,837 3,079,127 3,118,338 3,172,041 3,347,267 3,493,770 3,579,227 3,638,672 3,596,951

Effective Gross Revenue 2,500,262 2,813,089 3,029,837 3,079,127 3,118,338 3,172,041 3,347,267 3,493,770 3,579,227 3,638,672 3,596,951

Operating Expenses Electric/ Gas (CAM) 20,982 21,402 21,830 22,266 22,712 23,166 23,629 24,102 24,584 25,075 25,577 Water/ Sewer (CAM) 521 531 542 553 564 575 587 598 610 623 635 Trash Removal (CAM) 3,087 3,149 3,212 3,276 3,341 3,408 3,476 3,546 3,617 3,689 3,763 Landscaping (CAM) 11,561 11,792 12,028 12,269 12,514 12,764 13,020 13,280 13,546 13,816 14,093 Ground Maintenance (CAM) 23,825 24,302 24,788 25,283 25,789 26,305 26,831 27,367 27,915 28,473 29,043 General R&M (CAM) 37,233 37,978 38,737 39,512 40,302 41,108 41,930 42,769 43,624 44,497 45,387 Contract Labor (CAM 10,640 10,853 11,070 11,291 11,517 11,747 11,982 12,222 12,466 12,716 12,970 Pest Control (CAM) 2,222 2,266 2,312 2,358 2,405 2,453 2,502 2,552 2,603 2,655 2,709 Insurance 104,285 106,371 108,498 110,668 112,881 115,139 117,442 119,791 122,186 124,630 127,123 Taxes 347,266 354,211 361,296 368,521 375,892 383,410 391,078 398,899 406,877 415,015 423,315 Management Fee 75,008 84,393 90,895 92,374 93,550 95,161 100,418 104,813 107,377 109,160 107,909 Reserves 41,500 42,330 43,177 44,040 44,921 45,819 46,736 47,670 48,624 49,596 50,588

Total Operating Expenses 678,130 699,578 718,385 732,411 746,388 761,055 779,631 797,609 814,029 829,945 843,112

Net Operating Income 1,822,132 2,113,511 2,311,452 2,346,716 2,371,950 2,410,986 2,567,636 2,696,161 2,765,198 2,808,727 2,753,839

Debt Service Interest Payments 635,500 631,713 623,230 614,392 605,186 595,595 941,873 928,780 914,949 900,337 Principal Payments 203,042 211,525 220,362 229,569 239,160 232,107 245,200 259,031 273,643

Total Debt Service 635,500 834,755 834,755 834,754 834,755 834,755 1,173,980 1,173,980 1,173,980 1,173,980

Leasing & Capital Costs Tenant Improvements 134,510 318,995 106,641 23,164 323,253 876,975 117,741 127,477 161,672 799,819 Leasing Commissions 29,180 60,674 22,063 5,490 63,239 156,281 24,281 23,790 30,558 207,250

Total Leasing & Capital Costs 163,690 379,669 128,704 28,654 386,492 1,033,256 142,022 151,267 192,230 1,007,069

Cash Flow After Debt Service $1,022,942 $899,087 $1,347,993 $1,511,962 $1,508,541 $1,189,739 $360,400 $1,380,159 $1,439,951 $1,442,517 $1,746,770 But Before Taxes ======22 GATEWAY ARGUS MODEL Software: ARGUS Ver. 15.0.1.26 PLAZA File: Gateway Plaza V2 Property Type: Retail Portfolio: Date: 1/12/19 Time: 5:04 pm Schedule Of Sources & Uses Of Capital Ref#: AYP Equity is Based on Property Value, Leverage and Operating Requirements

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 For the Years Ending Apr-2020 Apr-2021 Apr-2022 Apr-2023 Apr-2024 Apr-2025 Apr-2026 Apr-2027 Apr-2028 Apr-2029

Sources Of Capital Net Operating Gains $1,822,132 $2,113,511 $2,311,452 $2,346,716 $2,371,950 $2,410,986 $2,567,636 $2,696,161 $2,765,198 $2,808,727 Debt Funding Proceeds 15,500,000 17,230,285 Initial Equity Contribution 10,000,000 Net Proceeds from Sale 37,214,041 Defined Sources Of Capital 27,322,132 2,113,511 2,311,452 2,346,716 2,371,950 2,410,986 19,797,921 2,696,161 2,765,198 40,022,768

Required Equity Contributions 13,206,603

Total Sources Of Capital $27,322,132 $2,113,511 $2,311,452 $2,346,716 $2,371,950 $15,617,589 $19,797,921 $2,696,161 $2,765,198 $40,022,768 ======Uses Of Capital Property Purchase Price $25,500,000 Total Debt Service 635,500 834,755 834,755 834,754 834,755 834,755 1,173,980 1,173,980 1,173,980 1,173,980 Tenant Improvements 134,510 318,995 106,641 23,164 323,253 876,975 117,741 127,477 161,672 Leasing Commissions 29,180 60,674 22,063 5,490 63,239 156,281 24,281 23,790 30,558 Retirement & Penalties 14,396,342 16,220,304

Defined Uses Of Capital 26,299,190 1,214,424 963,459 834,754 863,409 15,617,589 2,207,236 1,316,002 1,325,247 17,586,514

Cash Flow Distributions 1,022,942 899,087 1,347,993 1,511,962 1,508,541 17,590,685 1,380,159 1,439,951 22,436,254

Total Uses Of Capital $27,322,132 $2,113,511 $2,311,452 $2,346,716 $2,371,950 $15,617,589 $19,797,921 $2,696,161 $2,765,198 $40,022,768 ======Unleveraged Cash On Cash Return Cash to Purchase Price 6.50% 6.80% 8.56% 9.20% 9.19% 7.94% 6.02% 10.02% 10.25% 10.26% NOI to Book Value 7.10% 8.12% 8.83% 8.97% 9.05% 9.07% 9.30% 9.71% 9.91% 9.99% Cash to Purchase Price & Costs 6.50% 6.80% 8.56% 9.20% 9.19% 7.94% 6.02% 10.02% 10.25% 10.26%

Leveraged Cash On Cash Return Cash to Initial Equity 10.23% 8.99% 13.48% 15.12% 15.09% -132.07% 175.91% 13.80% 14.40% 14.43%

Unleveraged Annual IRR 10.95% Leveraged Annual IRR 16.99%

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23 DEMOGRAPHIC & MARKET OVERVIEW03 Population Employees 107,010 154,201

Population Employees 56,349 100,412

Population Employees 4,768 14,517 GATEWAY PLAZA DEMOGRAPHIC & MARKET OVERVIEW

POPULATION 1 Miles 3 Miles 5 Miles HOUSEHOLDS BY EXPENDITURE 1 Miles 3 Miles 5 Miles ▪ 2022 Projection Total Average Household Retail Expenditure $51,754 $53,951 $55,780 Total Population 4,699 55,967 106,641 ▪ Consumer Expenditure Top 10 Categories ▪ 2017 Estimate Housing $13,602 $14,190 $14,626 Total Population 4,768 56,349 107,010 Transportation $10,651 $10,727 $11,159 ▪ 2010 Census Shelter $7,227 $7,462 $7,723 Total Population 4,714 56,044 106,173 Food $5,649 $5,901 $6,137 ▪ 2000 Census Personal Insurance and Pensions $3,744 $4,226 $4,539 Total Population 4,824 59,026 104,928 Utilities $3,621 $3,696 $3,777 ▪ Current Daytime Population Health Care $3,544 $3,809 $3,860 2017 Estimate 14,517 100,412 154,201 Entertainment $1,798 $2,008 $2,076 HOUSEHOLDS 1 Miles 3 Miles 5 Miles Household Furnishings and Equipment $1,375 $1,535 $1,587 ▪ 2022 Projection Cash Contributions $1,266 $1,438 $1,461 Total Households 1,764 22,285 42,056 POPULATION PROFILE 1 Miles 3 Miles 5 Miles ▪ 2017 Estimate ▪ Population By Age Total Households 1,753 22,084 41,534 2017 Estimate Total Population 4,768 56,349 107,010 Average (Mean) Household Size 2.55 2.49 2.50 Under 20 28.75% 27.31% 28.21% ▪ 2010 Census 20 to 34 Years 20.86% 20.58% 22.28% Total Households 1,765 22,210 41,542 35 to 39 Years 6.67% 6.02% 6.07% ▪ 2000 Census 40 to 49 Years 11.14% 11.10% 11.05% Total Households 1,771 23,289 41,180 50 to 64 Years 17.01% 19.44% 18.81% ▪ Occupied Units Age 65+ 15.59% 15.53% 13.57% 2022 Projection 1,764 22,285 42,056 Median Age 35.28 36.69 34.62 2017 Estimate 1,986 25,284 47,222 ▪ Population 25+ by Education Level HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles 2017 Estimate Population Age 25+ 3,094 37,126 68,126 ▪ 2017 Estimate Elementary (0-8) 9.26% 7.44% 6.08% $150,000 or More 2.55% 5.76% 6.55% Some High School (9-11) 10.42% 9.91% 9.11% $100,000 - $149,000 6.14% 8.29% 8.72% High School Graduate (12) 33.43% 31.04% 31.31% $75,000 - $99,999 9.80% 8.29% 8.36% Some College (13-15) 27.94% 24.26% 24.72% $50,000 - $74,999 16.63% 14.37% 15.46% Associate Degree Only 4.21% 4.89% 5.56% $35,000 - $49,999 11.59% 13.60% 13.92% Bachelors Degree Only 7.00% 13.94% 14.87% Under $35,000 53.29% 49.69% 46.98% Graduate Degree 3.70% 6.90% 6.91% Average Household Income $47,745 $58,455 $60,091 Created on December 2018 Median Household Income $32,953 $35,272 $37,669 Per Capita Income $17,940 $23,137 $23,684

Source: © 2017 Experian 26 GATEWAY PLAZA DEMOGRAPHIC & MARKET OVERVIEW

Population Race and Ethnicity In 2017, the population in your selected geography is 107,010. The The current year racial makeup of your selected area is as follows: population has changed by 1.98% since 2000. It is estimated that the 37.17% White, 46.89% Black, 0.05% Native American and 3.81% population in your area will be 106,641 five years from now. The Asian/Pacific Islander. Compare these to US averages which are: current population is 47.97% male and 52.03% female. The median 70.42% White, 12.85% Black, 0.19% Native American and 5.53% age of the population in your area is 34.62, compare this to the US Asian/Pacific Islander. People of Hispanic origin are counted average which is 37.83. The population density in your area is independently of race. 1,363.44 people per square mile. People of Hispanic origin make up 16.98% of the current year population in your selected area. Compare this to the US average of 17.88%.

Households Housing There are currently 41,534 households in your selected geography. The median housing value in your area was $101,230 in 2017, The number of households has changed by 0.86% since 2000. It is compare this to the US average of $193,953. In 2000, there were estimated that the number of households in your area will be 42,056 24,689 owner occupied housing units in your area and there were five years from now, which represents a change of 1.26% from the 16,491 renter occupied housing units in your area. The median rent at current year. The average household size in your area is 2.50 persons. the time was $386.

Income Employment In 2017, the median household income for your selected geography is In 2017, there are 154,201 employees in your selected area, this is $37,669, compare this to the US average which is currently $56,286. also known as the daytime population. The 2000 Census revealed The median household income for your area has changed by 16.76% that 58.73% of employees are employed in white-collar occupations since 2000. It is estimated that the median household income in your in this geography, and 41.33% are employed in blue-collar area will be $43,942 five years from now, which represents a change occupations. In 2017, unemployment in this area is 9.72%. In 2000, of 16.65% from the current year. the average time traveled to work was 20.00 minutes.

The current year per capita income in your area is $23,684, compare this to the US average, which is $30,982. The current year average household income in your area is $60,091, compare this to the US average which is $81,217.

Source: © 2017 Experian 27 GATEWAY PLAZA DEMOGRAPHIC & MARKET OVERVIEW

BEAUMONT OVERVIEW

The Beaumont metro is located in East Texas off the Gulf of Mexico and is one of the nation’s largest petrochemical refining areas. It shares METRO HIGHLIGHTS borders with the Houston metro to the west and the Lake Charles market in Louisiana to the east. The metro consists of the counties of Newton, PORT ACTIVITY Hardin, Jefferson and Orange and contains 413,000 people. The cities of The Port of Beaumont contributes to significant economic activity in the region. Beaumont, Port Arthur and Orange are known as the Golden Triangle. It is one of the nation’s largest seaports based on tonnage.

Beaumont is the most populous city with 119,500 residents, followed INDUSTRIAL AND MANUFACTURING SECTORS Port Arthur with 55,500. Large industrial facilities in the area include the Exxon Mobil refinery and chemical plants for Goodyear and DuPont.

CORPORATE HEADQUARTERS Corporate headquarters represent a variety of industries and include companies such as Jason’s Deli.

ECONOMY

▪ Energy-sector activities play a significant part in the metro’s economy. Companies represented in the area include Gulf Oil, Humble Oil, Magnolia Petroleum Co. and Exxon Mobil. The area is home to a large portion of the nation’s refining capacity. ▪ Aside from corporate headquarters and the energy industry, large employers represent diverse employment sectors and generate large staff counts. These include Conn’s, Lamar University, Christus St. Elizabeth Hospital and Memorial Baptist Hospital. ▪ The Sabine-Neches Waterway ranks among the top in the U.S. in terms of commercial military outload and is one of the nation’s largest waterway by cargo volume. DEMOGRAPHICS

2017 2017 2017 2017 MEDIAN POPULATION: HOUSEHOLDS: MEDIAN AGE: HOUSEHOLD INCOME: 414K 153K 37.1 $43,400 Growth Growth U.S. Median: U.S. Median: 2017-2022*: 2017-2022*: 0.7% 2.2% 37.8 $56,300

* Forecast Sources: Marcus & Millichap Research Services; BLS; Bureau of Economic Analysis; Experian; Fortune; Moody’s Analytics; U.S. Census Bureau 28 GATEWAY PLAZA DEMOGRAPHIC & MARKET OVERVIEW

HOUSTON METRO AREA

Houston Employment Rising Again, Attracts Residents and Retailers Retail 2018 Outlook Rebouding employment, healthy demographics encourage Houston retail 4.4 million sq. ft. Construction: market. While many other major metros’ growth cycles are beginning to slow down, Retail deliveries in Houston during 2018 will Houston is ramping back up. The decline in energy prices placed pressure on the will be completed be one of the highest in the country and local oil and gas industry in the middle of a national economic expansion. As a result, remain in line with the previous five-year employment gains were virtually flat for two years as additions in other sectors average. mitigated losses at energy firms and related companies. Job creation in the metro began to strengthen during 2017, and growth continue to improve again this year, 20 basis point Vacancy: attracting new residents to the metro. With the market returning to expansion mode, Vacancy rises to 5.9 percent in 2018 as the retail tenant demand strengthens from last year at a time when deliveries remain near increase in vacancy absorption of more than 3.6 million square a cyclical peak. feet of retail space falls short of supply additions this year. Households replacing damaged goods help boost retail spending. Thousands of Rents: residents are still dealing with repairs and replacing household goods in the metro 3.3% increase in following the flooding from Hurricane Harvey. This helped boost spending in the Asking rent advances at a healthy clip to asking rents $17.63 per square foot. Last year, the metro at its fastest pace since 2014, and a stronger rate of growth is expected again average increased 4.4 percent. this year. Retail developers continue to bring a healthy amount of new space online in the metro to meet rising tenant demand, and while vacancy rises this year, the development pipeline begins to thin and vacancy remains healthy through the end of this year.

Investment Trends • Houston’s ability to rebound from uncertain economic times and perils has made it an attractive market in which to invest, with yields averaging 50 to 100 basis points higher than most major markets across the country. Rising interest rates, and the local economy back in growth mode, could prompt additional demand as buyers search for higher-yielding opportunities. • Unanchored strip centers are performing well and attracting strong investor interest throughout the metro. Properties with small shop space and a good mix of service-related retailers are in highest demand. Cap rates for these assets average between 6.5 percent and 7.5 percent depending on property age, location and tenant credit. • Strip center assets in western areas of the metro, such as Sugar Land, Katy and up to The Woodlands, are in high demand and often trading for a premium, with prices averaging $40 to $60 per square foot more than the metro average.

* Cap rates trailing 12 months through 1Q18; 10-Year Treasury up to March 29, 2018 Sources: CoStar Group, Inc.; Real Capital Analytics 29 GATEWAY PLAZA DEMOGRAPHIC & MARKET OVERVIEW

HOUSTON METRO AREA

1Q18 - 12-Month Trend

EMPLOYMENT CONSTRUCTION VACANCY RENTS

increase in total square feet basis point increase increase in the 2.1% employment Y-O- 5.1 million completed 40 in vacancy Y-O-Y 1.6% average asking rent Y Y-O-Y Y-O-Y • A gain of more than 26,000 • Approximately 1 million square • Absorption stumbled during the • The average asking rent employees in the professional feet of retail space came online third quarter of 2017 as retailers advanced to $17.20 per square and business services sector in the first quarter, with deliveries dealt with the aftermath of foot over the past year, slowing helped propel a 64,000-job concentrated in the North Hurricane Harvey, resulting in from the 6.7 percent pace of increase in Houston’s total Houston suburb of Conroe. supply additions outpacing growth achieved over the employment during the past 12 • Space underway is concentrated demand over the last year and previous 12-month span. months. in the southwest portion of the pushing up vacancy to 5.7 • Despite a 240-basis-point • Strong job gains resulted in a metro, where nearly 800,000 percent. increase in vacancy last year, 120-basis-point drop in the square feet of space is under • The CBD, Inner Loop and North rent growth in the CBD was metro’s unemployment rate, construction. Sugar Land will Houston submarkets recorded strong. The average surged which reached 4.5 percent in the gain more than 300,000 square increases in vacancy of 100 more than 25 percent during the first quarter, near the decade low. feet of space this year. basis points or more over the past year to $24.27 per square past four quarters. foot.

* Forecast 30 GATEWAY PLAZA DEMOGRAPHIC & MARKET OVERVIEW

HOUSTON METRO AREA

Submarket Trends

Lowest Vacancy Rates 1Q18

Y-O-Y Asking Y-O-Y% Submarket Vacancy BasisPoint Rate Rent Change Change

Austin County 1.6% -960 $12.00 35.3%

Northeast 4.4% 30 $17.49 6.4%

* Forecast **2017-2022 Sales Trends Inner Loop 4.6% 100 $26.18 10.1%

Buyers Target Houston for Larger Yield Spreads West 5.0% 30 $20.93 1.8% Amid Rising Interest Rate Environment • Multi-Tenant: Sales activity is increasing as confidence in Houston returns, and the East 5.5% 70 $13.96 6.3% average price grew 3.6 percent to nearly $214 per square foot. Cap rates for these properties averaged 7.7 percent. Northwest 5.7% 30 $18.66 9.5% • Single-Tenant: Net leased retail assets changed hands for an average price of $256 per square foot over the past 12 months, with cap rates in the low-7 percent area. Southeast 5.7% -20 $14.34 1.8%

Outlook: Strong retail property operations Southwest 6.2% 20 $15.04 -2.5% and a favorable economic outlook will sustain healthy demand for Houston area CBD 6.3% 240 $24.27 25.3% properties. South 6.3% 60 $15.98 -2.3%

North 6.7% 140 $13.64 -14.8%

Overall Metro 5.7% 40 $17.20 1.6%

* Trailing 12 months through 1Q18 over previous time period Pricing trend sources: CoStar Group, Inc.; Real Capital Analytics 31 GATEWAY PLAZA DEMOGRAPHIC & MARKET OVERVIEW

HOUSTON METRO AREA

Capital Markets

• Fed raises benchmark interest rate, plans additional increases. The Federal Reserve increased the federal funds rate by 25 basis points in late March, raising the overnight lending rate to 1.5 percent. While the Fed noted the inflation outlook moderated recently, an upgraded economic forecast including tax cuts and a regulation rollback strengthened growth projections through 2020. As a result, the Fed has guided toward at least two more rate hikes this year, while setting the stage for up to four increases in 2019.

• Lending costs rise alongside Fed rate increase. As the Federal Reserve lifts interest rates, lenders will face a rising cost of capital, which may lead to higher lending rates for investors. However, greater competition for loan demand has prompted some lenders to absorb some cost increases. While higher borrowing costs may prompt buyers to seek higher cap rates, the positive economic outlook should boost rent growth above inflation over the coming year.

• The capital markets environment remains highly competitive. While the Federal Reserve has committed to tightening policy, other major central banks have maintained easing policies. The downward pressure on rates from foreign central banks is counteracting greater economic growth and wider government deficits, keeping demand for fixed-income investments stable. Loan pricing resides in the mid-4 percent range with maximum leverage of 70 percent. Portfolio lenders will require loan-to-value ratios closer to 65 percent with interest rates, depending on term, in the high-3 to mid-4 percent range. The passage of tax reform and rising fiscal stimulus will keep the U.S. economy growing strongly this year, while limited new construction and steady absorption will contain office vacancy near 14 percent.

* Through May 1st Sources: CoStar Group, Inc.; Real Capital Analytics

32 GATEWAY PLAZA

www.dumesfalk.com

EXCLUSIVELY LISTED BY: RYAN K. ROEDERSHEIMER Associate Director - National Retail Group Cincinnati Office Tel: (513) 878-7796 Fax: (513) 878-7710 [email protected] Licenses: OH SAL.2015004880 JOEL M. DUMES Senior Vice President Investments Senior Director - National Retail Group Cincinnati Office Tel: (513) 878-7720 Fax: (513) 878-7710 [email protected] Licenses: OH SAL.2003013045, KY 63818 STANTON R. FALK First Vice President Investments Senior Director - National Retail Group Cincinnati Office Tel: (513) 878-7721 Fax: (513) 878-7710 [email protected] Licenses: OH SAL.2012001364 Broker of Record: Timothy Speck