828 Lathrop St 8,400 SF Retail Freestanding Houston, TX 77020 - Inner Loop East End Submarket

Home , Houston Metro

Underwriting Report - Retail Property 828 Lathrop St 8,400 SF Retail Freestanding Houston, TX 77020 - Inner Loop East End Submarket

PREPARED BY

Anthony Rigg Research Associate II Table Of Contents

SUBJECT PROPERTY

Property Details 2

MARKET SUMMARY

Houston Market Summary 8

Houston Economic Summary 9

PEER PROPERTIES

Peer Property Photos 14 Peer Property Comparison 17

LEASING ANALYTICS

Absorption Analytics 25

Leasing Analytics 26

CONSTRUCTION

Overall Construction Summary 29 Houston Construction 30 Inner Loop East End Construction 31 Construction Activity 32 Completed Construction Past 12 Months 37 Deliveries Past 12 Months Property Details 39 Under Construction Summary 44 Under Construction Property Details 45

SALE COMPS

Investment Trends 49 Sale Comp Details 53 Sales Volume 67

Sales Pricing 68

Cap Rates 70 Top Buyers & Sellers 71

DEMOGRAPHICS

Income and Spending 74

APPENDIX

5/13/2019 Copyrighted report licensed to CoStar Group - 986887. Subject Property 828 Lathrop St

828 Lathrop St Houston, TX 77020 - Inner Loop East End Ret

TRAFFIC COUNTS Lathrop St/Amarillo St 9.5K Market St/Lathrop St 3.5K Lathrop St/Bonham St 7.0K Market St/Henke St 3.6K

LOCATION Location Score: 32 Walk Score®: Very Walkable (76) Transit Score®: Some Transit (45)

PROPERTY Type: Freestanding Tenancy: 1 Tenant Center: - Construction: Steel GLA: 8,400 SF Land Acres: 0.64 AC Yr Blt/Renov: 1973 Building FAR: 0.30 Floors: 1 Total Expenses: - Docks: - Parking: 26 Surface Spaces are available; Ratio of 3.10/1,000 SF Features: Air Conditioning, Corner Lot, Fenced Lot Frontage: 260' on East Fwy, 54' on Lathrop St

VACANCY NNN ASKING RENTS PER SF 12 MO. LEASING SF ACTIVITY Current: 100% Current: $13.80 Property: - Last Quarter: 100% Last Quarter: $13.80 Peers Total: - Year Ago: 0% Year Ago: - Peers Count: 17 Peers: 15.0% Peers (Market Rent): $14.38 Peers Avg: - Submarket: 4.8% Submarket (Market Rent): $17.15 Submarket: 102,498

AVAILABLE SPACES

Space Type Square Feet

Floor Suite Use Type Occupancy SF Avail Bldg Contig Rent On Market Vacant P 1st - Retail Direct Vacant 8,400 8,400 $13.80/NNN 6 mo 6 mo All Spaces 8,400 8,400 $13.80/SF/Yr

5/13/2019 Copyrighted report licensed to CoStar Group - 986887. Page 2 Subject Property 828 Lathrop St

SITE PLAN

TENANTS

Tenant Store Type SF Occupied Chain Move Date Exp Date Unique Home Furniture - - No Jul 2016 -

5/13/2019 Copyrighted report licensed to CoStar Group - 986887. Page 3 Subject Property 828 Lathrop St

AERIAL VIEW

5/13/2019 Copyrighted report licensed to CoStar Group - 986887. Page 4 Subject Property 828 Lathrop St

DEMOGRAPHICS

Population 1 Mile 3 Miles 5 Miles 10 Miles 10 Min. Drive

Population 19,496 89,881 312,111 1,266,925 230,837

5 Yr Growth 5.9% 5.4% 5.8% 6.0% 5.2%

Median Age 32 33 34 34 35

5 Yr Forecast 33 35 36 36 37

White / Black / Hispanic 86% / 11% / 87% 67% / 30% / 68% 69% / 26% / 62% 70% / 23% / 54% 70% / 25% / 58%

5 Yr Forecast 86% / 11% / 87% 68% / 29% / 68% 69% / 26% / 63% 70% / 23% / 55% 70% / 25% / 59%

Employment 6,324 45,245 296,265 947,141 106,060

Buying Power $174.4M $843.7M $4.0B $22.2B $3.6B

5 Yr Growth 6.7% 6.4% 9.6% 8.3% 8.9%

College Graduates 4.2% 7.6% 15.0% 23.8% 23.7%

Household

Households 5,497 29,087 102,176 450,152 81,148

5 Yr Growth 5.8% 5.3% 6.5% 6.2% 5.7%

Median Household Income $31,729 $29,005 $38,980 $49,266 $44,766

5 Yr Forecast $32,000 $29,323 $40,144 $50,236 $46,112

Average Household Income $43,468 $41,674 $62,292 $78,433 $71,312

5 Yr Forecast $44,247 $42,438 $64,273 $80,048 $73,451

% High Income (>$75k) 15% 14% 26% 34% 31%

Housing

Median Home Value $74,750 $78,654 $99,244 $146,955 $147,276

Median Year Built 1957 1957 1962 1970 1963

Owner / Renter Occupied 57% / 43% 44% / 56% 45% / 55% 49% / 51% 41% / 59%

5/13/2019 Copyrighted report licensed to CoStar Group - 986887. Page 5 Subject Property 828 Lathrop St

TRAFFIC COUNTS

COUNTS BY STREETS

Collection Street Cross Street - Direction Traffic Volume Count Year Dist from Subject 1 Lathrop St Amarillo St - N 9,470 2018 0.05 mi 2 Market St Lathrop St - W 3,502 2018 0.13 mi 3 Lathrop St Bonham St - N 7,036 2018 0.14 mi 4 Market St Henke St - E 3,562 2018 0.29 mi 5 Kress St East Fwy - N 7,162 2018 0.33 mi

5/13/2019 Copyrighted report licensed to CoStar Group - 986887. Page 6 Market Summary 828 Lathrop St 8,400 SF Retail Freestanding Houston, TX 77020 - Inner Loop East End Submarket

PREPARED BY

Anthony Rigg Research Associate II Houston Market Summary 828 Lathrop St

Demand for retail in Houston has lagged new Since 2010, 80% of the population growth in Harris construction this cycle. Despite Houston’s economic ups County has occurred in its unincorporated area outside and downs, such as the oil boom and bust and Hurricane of the city limits of Houston, the vast majority of which is Harvey, Houston has added over 400,000 new located in Northwest Houston. Today, more people in households since 2010, representing nearly 1 million new Harris County live outside Beltway 8 than within it, and residents as of 19Q1. This represented a rate of Harris County's unincorporated area is expected to be population growth of 18% versus 6% nationally. home to more residents than Houston by 2020. Retail Moreover, Houston added over 500,000 jobs, a rate of development has followed this trend, especially near the growth of 22% versus the national rate of 15%. However, Grand Parkway. median household income in Houston grew at a slower pace than the national average at 21% versus 27%, It seems that the national headlines of doom and gloom though one could argue that still represents impressive related to the paradigm shift to e-commerce and big box growth. All of those new rooftops and jobs drove demand store closures are a bit overblown for Houston, where for retail, which has led toa significant spike in grocery- solid retail absorption year-after-year and a vacancy anchored shopping center developments, predominately rate of 5.3% signify resiliency in the local retail sector. in suburban areas. Meanwhile, Houston added less than half the retail square footage this cycle compared to last cycle.

NET ABSORPTION, NET DELIVERIES & VACANCY

5/13/2019 Copyrighted report licensed to CoStar Group - 986887. Page 8 Houston Economic Summary 828 Lathrop St

It appears that Houston’s employment base did not grow mobility have allowed Houston’s deep bench of as fast last year as previously estimated.However, job professional and business services talent to more growth remained robust as Houston’s economy broadly serve clients across the globe and in industries continued to rebound from the effects of the oil downturn beyond oil and gas. However, as the Energy Capital of and Hurricane Harvey. When the BLS revisions were the World, Houston’s economy remains predominately published in March for the prior year, it showed that influenced by changes in the energy sector. Nearly half Houston added 73,300 jobs versus the 108,300 that it of Houston’s Gross Metro Product (GMP) remains tied to was initially reporting prior to the announcement—a energy. downward revision of 35,000 jobs. These types of revisions are standard. CoStar assumes a general cooling in the U.S. economy in 2020, which would negatively impact Houston, The biggest changes were in the construction and although Houston is the only major U.S. metro to have professional and business services sectors, where “corrected” this cycle in terms of office and multifamily numbers revised down by about half. It is likely that the performance and transaction values. Moreover, Houston BLS overestimated construction-sector growth as a has experienced unprecedented population and result of repairs in the immediate aftermath of Harvey. employment growth this cycle, and its low cost of living, That demand had cooled by mid-2018. low-tax rate, business-friendly environment, diversity, temperate climate, and increasing quality of life should In the professional and business services sector, lower- continue to attract residents and support economic paying, contract-labor jobs such as administrative growth. services—especially employment services—grew faster than higher-paying jobs such as those in the Houston has an important question to answer regarding architectural and engineering subsector. Still, this marked the future of the energy industry in the face of climate an above-average year, with employment growing 2.4% change. Will it make the transition to a true, all- versus the 20-year average of 1.7%. The University of encompassing “energy” city, including renewables? The Houston’s Institute for Regional Forecasting forecasts Ion in Midtown, which will serve as the de-facto hub of a that Houston will add approximately 60,000 jobs in 2019; Houston Innovation District in Midtown upon completion the Federal Reserve Bank of Dallas-Houston Branch in late 2020, will be a welcome addition to Houston’s forecasts 62,000 jobs and the Greater Houston growing tech ecosystem. There is also significant talk of Partnership pins this number at 71,000. large tech companies eyeing Houston for work in big data related to the energy and healthcare industries. And As of April 2019, West Texas Intermediate (WTI) oil was The Texas Medical Center | 3 project, which will create a trading between $60/barrel and $65/barrel, down from a $1.5 billion collaborative research campus with the recent high of $75/barrel in October 2018, portending purpose of fostering a life sciences and biotech scene in caution in the energy industry with regards to 2019 Houston, could also add to the flavor of Houston's capital expenditures and hiring plans. The U.S. Energy resilient economy. Information Administration forecasts WTI to average $54/barrel in 2019 and $60/barrel in 2020. Long-term, Houston should also see significant changes to its infrastructure as it works to accommodate a wave Structural changes in Houston’s energy industry are of new residents. Construction on the $7 billion North afoot. Although nearly one-third of energy jobs lost Houston Highway Improvement Project (NHHIP) should during the oil downturn have been gained back, there are begin in 2020 and take more than eight years to some notes of caution. Technological progress has complete. This will include a $3 billion reconstruction of increased energy companies’ ability to do more with less the highways in around Downtown Houston, which will and may result in less demand for traditional oil and gas create generational opportunities to build new parks jobs in the future. For instance, the industry is seeing a connecting area neighborhoods. brisk uptick in demand for data scientists, while the hiring rate for more traditional oil and gas engineering jobs has METRO is also moving toward a $3 billion bond vote for been slower to recover. its 20-year transit plan that would include 20 more miles of light rail, 75 miles of bus rapid transit, and 110 miles Houston’s economy has diversified measurably since the of two-way HOV lanes along area freeways. And then 1980s, especially since globalization and increased there are plans for the Texas Central Railway, a 90-

5/13/2019 Copyrighted report licensed to CoStar Group - 986887. Page 9 Houston Economic Summary 828 Lathrop St minute, high-speed train connecting Dallas and Houston between $12 billion and $20 billion, and had purchased using Japanese Shinkansen technology. As of March one-third of the land needed for the development to 2019, Texas Central Partners had taken out a $300 move forward. Service could begin as soon as 2024. million loan on the project, which is expected to cost

YEAR OVER YEAR JOB GROWTH

Source: Oxford Economics

DEMOGRAPHIC TRENDS

Current Level Current Change 10-Year Change Forecast Change (5 Yrs)

Demographic Category Metro U.S. Metro U.S. Metro U.S. Metro U.S. Population 7,081,486 328,929,469 1.6% 0.7% 2.1% 0.7% 1.6% 0.7% Households 2,383,253 121,170,977 1.5% 0.6% 2.0% 0.7% 1.5% 0.6% Median Household Income $66,800 $63,695 3.1% 3.7% 1.8% 2.2% 3.3% 3.2% Labor Force 3,478,878 163,471,109 2.4% 1.1% 2.1% 0.6% 0.9% 0.4% Unemployment 4.0% 3.8% -0.6% -0.1% -0.3% -0.5% - - Source: Oxford Economics

5/13/2019 Copyrighted report licensed to CoStar Group - 986887. Page 10 Houston Economic Summary 828 Lathrop St

POPULATION GROWTH LABOR FORCE GROWTH INCOME GROWTH

Source: Oxford Economics

5/13/2019 Copyrighted report licensed to CoStar Group - 986887. Page 11 Peer Properties 828 Lathrop St 8,400 SF Retail Freestanding Houston, TX 77020 - Inner Loop East End Submarket

PREPARED BY

Anthony Rigg Research Associate II Retail Peer Properties Summary

RETAIL PEER PROPERTIES SUMMARY An error has occurred while generating this section of the report. You may try it again. If the error persists, please report the error to our customer support at Costar.com

5/13/2019 Copyrighted report licensed to CoStar Group - 986887. Page 13 Peer Property Photos 828 Lathrop St

1 7065 East Fwy 2 7018 Harrisburg Blvd 3 6835 Harrisburg Blvd

8,880 SF / Vacancy Rate 0% 13,060 SF / Vacancy Rate 0% 13,412 SF / Vacancy Rate 0% Rent/SF - $21 - $25 (Est.) Rent/SF - $14 - $18 (Est.) Rent/SF - $14 - $17 (Est.) Owner: Creekside Companies Owner: Ann Taylor Owner: Hartley II Trust

4 3602 Navigation Blvd 5 1001 Wayside Dr 6 Family Dolllar 5401 East Fwy 11,340 SF / Vacancy Rate 100% 9,191 SF / Vacancy Rate 0% 8,607 SF / Vacancy Rate 0% NNN Rent/SF - $17.00 Rent/SF - $14 - $17 (Est.) Rent/SF - $14 - $17 (Est.) Owner: - Owner: Vasquez Secundino Owner: VEREIT Real Estate L.P.

7 Family Dollar 8 4327 Canal St 9 7211 Harrisburg Blvd 3302 Liberty Rd 8,320 SF / Vacancy Rate 0% 4,500 SF / Vacancy Rate 0% 7,500 SF / Vacancy Rate 0% Rent/SF - $14 - $17 (Est.) Rent/SF - $13 - $16 (Est.) Rent/SF - $13 - $16 (Est.) Owner: Fletcher Gloria Living Trust Owner: Winhill Advisors - Kirby Owner: Martinez Genaro

5/13/2019 Copyrighted report licensed to CoStar Group - 986887.

Page 14 Peer Property Photos 828 Lathrop St

10 Luby's Cafeteria 11 3316 Lyons Ave 12 Family Dollar 10314 E I-10 Fwy 3411 Navigation St 13,146 SF / Vacancy Rate 0% 5,953 SF / Vacancy Rate 0% 9,195 SF / Vacancy Rate 0% Rent/SF - $13 - $16 (Est.) Rent/SF - $13 - $16 (Est.) Rent/SF - $13 - $16 (Est.) Owner: 7045 Inc Owner: Pdr Llc Owner: Capview Management, LLC

13 3411 Navigation Blvd 14 EZ PAWN 15 Penske Truck Leasing 5901 Lyons Ave 351 Gellhorn Dr 8,078 SF / Vacancy Rate 0% 8,663 SF / Vacancy Rate 0% 16,704 SF / Vacancy Rate 0% Rent/SF - $13 - $16 (Est.) Rent/SF - $13 - $16 (Est.) Rent/SF - $13 - $15 (Est.) Owner: Capview Management, LLC Owner: Black Equities Group, Ltd Owner: Penske Truck Leasing Co

Subject Property

828 Lathrop St 16 5002 Navigation Blvd 17 6704 Harrisburg Blvd

8,400 SF / Vacancy Rate 100% 7,320 SF / Vacancy Rate 0% 13,854 SF / Vacancy Rate 100% NNN Rent/SF - $13.80 Rent/SF - $3 - $4 (Est.) NNN Rent/SF - $3.50 Owner: Unique Home Furniture Inc Owner: - Owner: Iron Castle, LLC

5/13/2019 Copyrighted report licensed to CoStar Group - 986887.

Page 15 Retail Peer Properties Detail

RETAIL PEER PROPERTIES DETAIL An error has occurred while generating this section of the report. You may try it again. If the error persists, please report the error to our customer support at Costar.com

5/13/2019 Copyrighted report licensed to CoStar Group - 986887. Page 16 Peer Property Comparison 828 Lathrop St

Property Name / Address Rating NNN Asking Rent Per SF Vacancy Rate 7065 East Fwy 1 $21 - 25(Est.) 0%

3602 Navigation Blvd 4 $17.00 100%

7018 Harrisburg Blvd 2 $14 - 18(Est.) 0%

6835 Harrisburg Blvd 3 $14 - 17(Est.) 0%

1001 Wayside Dr 5 $14 - 17(Est.) 0%

Family Dolllar 6 $14 - 17(Est.) 0% 5401 East Fwy Family Dollar 7 $14 - 17(Est.) 0% 3302 Liberty Rd 4327 Canal St 8 $13 - 16(Est.) 0%

7211 Harrisburg Blvd 9 $13 - 16(Est.) 0%

Luby's Cafeteria 10 $13 - 16(Est.) 0% 10314 E I-10 Fwy 3316 Lyons Ave 11 $13 - 16(Est.) 0%

Family Dollar 12 $13 - 16(Est.) 0% 3411 Navigation St 3411 Navigation Blvd 13 $13 - 16(Est.) 0%

EZ PAWN 14 $13 - 16(Est.) 0% 5901 Lyons Ave Penske Truck Leasing 15 $13 - 15(Est.) 0% 351 Gellhorn Dr 828 Lathrop St $13.80 100%

5002 Navigation Blvd 16 $3 - 4(Est.) 0%

6704 Harrisburg Blvd 17 $3.50 100%

Average $14.01 19.1% (Arrows indicate trend over last quarter)

5/13/2019 Copyrighted report licensed to CoStar Group - 986887. Page 17 Peer Property Comparison 828 Lathrop St

Property Name / Address Rating Availability Rate Vacancy Rate 828 Lathrop St 100% 100%

3602 Navigation Blvd 4 100% 100%

6704 Harrisburg Blvd 17 100% 100%

1001 Wayside Dr 5 0% 0%

Luby's Cafeteria 10 0% 0% 10314 E I-10 Fwy Family Dollar 7 0% 0% 3302 Liberty Rd 3316 Lyons Ave 11 0% 0%

3411 Navigation Blvd 13 0% 0%

Family Dollar 12 0% 0% 3411 Navigation St Penske Truck Leasing 15 0% 0% 351 Gellhorn Dr 4327 Canal St 8 0% 0%

5002 Navigation Blvd 16 0% 0%

Family Dolllar 6 0% 0% 5401 East Fwy EZ PAWN 14 0% 0% 5901 Lyons Ave 6835 Harrisburg Blvd 3 0% 0%

7018 Harrisburg Blvd 2 0% 0%

7065 East Fwy 1 0% 0%

7211 Harrisburg Blvd 9 0% 0%

Average 19.1% 19.1% (Arrows indicate trend over last quarter)

5/13/2019 Copyrighted report licensed to CoStar Group - 986887. Page 18 Peer Property Comparison 828 Lathrop St

Property Name / Address Rating NNN Asking Rent Per SF Median Months on Market 7065 East Fwy 1 $21 - 25(Est.)

3602 Navigation Blvd 4 $17.00 3

7018 Harrisburg Blvd 2 $14 - 18(Est.)

6835 Harrisburg Blvd 3 $14 - 17(Est.)

1001 Wayside Dr 5 $14 - 17(Est.)

Family Dolllar 6 $14 - 17(Est.) 5401 East Fwy Family Dollar 7 $14 - 17(Est.) 3302 Liberty Rd 4327 Canal St 8 $13 - 16(Est.)

7211 Harrisburg Blvd 9 $13 - 16(Est.)

Luby's Cafeteria 10 $13 - 16(Est.) 10314 E I-10 Fwy 3316 Lyons Ave 11 $13 - 16(Est.)

Family Dollar 12 $13 - 16(Est.) 3411 Navigation St 3411 Navigation Blvd 13 $13 - 16(Est.)

EZ PAWN 14 $13 - 16(Est.) 5901 Lyons Ave Penske Truck Leasing 15 $13 - 15(Est.) 351 Gellhorn Dr 828 Lathrop St $13.80 6

5002 Navigation Blvd 16 $3 - 4(Est.)

6704 Harrisburg Blvd 17 $3.50 43

Average $14.01 17 (Arrows indicate trend over last quarter)

5/13/2019 Copyrighted report licensed to CoStar Group - 986887. Page 19 Peer Property Comparison 828 Lathrop St

Property Name / Address Rating 12 Mo. Leasing Activity in SF 12 Mo. Net Absorption in SF 1001 Wayside Dr 5 0 0

Luby's Cafeteria 10 0 0 10314 E I-10 Fwy Family Dollar 7 0 0 3302 Liberty Rd 3316 Lyons Ave 11 0 0

3411 Navigation Blvd 13 0 0

Family Dollar 12 0 0 3411 Navigation St Penske Truck Leasing 15 0 0 351 Gellhorn Dr 4327 Canal St 8 0 0

5002 Navigation Blvd 16 0 0

Family Dolllar 6 0 0 5401 East Fwy EZ PAWN 14 0 0 5901 Lyons Ave 6704 Harrisburg Blvd 17 0 0

6835 Harrisburg Blvd 3 0 0

7018 Harrisburg Blvd 2 0 0

7065 East Fwy 1 0 0

7211 Harrisburg Blvd 9 0 0

828 Lathrop St 0 (8,400)

3602 Navigation Blvd 4 0 (10,840)

Average 0 (1,068)

5/13/2019 Copyrighted report licensed to CoStar Group - 986887. Page 20 Peer Property Comparison 828 Lathrop St

Property Name / Address Rating NNN Asking Rent Per SF Median Household Income (5 mi) 7065 East Fwy 1 $21-25 (Est.) $38,473

7018 Harrisburg Blvd 2 $14-18 (Est.) $40,643

6835 Harrisburg Blvd 3 $14-17 (Est.) $41,169

3602 Navigation Blvd 4 $17.00 $51,347

1001 Wayside Dr 5 $14-17 (Est.) $40,584

Family Dolllar 6 $14-17 (Est.) $43,932 5401 East Fwy Family Dollar 7 $14-17 (Est.) $50,745 3302 Liberty Rd 4327 Canal St 8 $13-16 (Est.) $49,443

7211 Harrisburg Blvd 9 $13-16 (Est.) $39,140

Luby's Cafeteria 10 $13-16 (Est.) $34,744 10314 E I-10 Fwy 3316 Lyons Ave 11 $13-16 (Est.) $52,932

Family Dollar 12 $13-16 (Est.) $53,054 3411 Navigation St 3411 Navigation Blvd 13 $13-16 (Est.) $52,796

EZ PAWN 14 $13-16 (Est.) $42,493 5901 Lyons Ave Penske Truck Leasing 15 $13-15 (Est.) $34,693 351 Gellhorn Dr 828 Lathrop St $13.80 $38,980

5002 Navigation Blvd 16 $3-4 (Est.) $45,951

6704 Harrisburg Blvd 17 $3.50 $41,527

Average $14.01 $44,036 (Arrows indicate trend over last quarter)

5/13/2019 Copyrighted report licensed to CoStar Group - 986887. Page 21 Leasing Analytics 828 Lathrop St 8,400 SF Retail Freestanding Houston, TX 77020 - Inner Loop East End Submarket

PREPARED BY

Anthony Rigg Research Associate II Commercial Vacancy Analytics

COMMERCIAL VACANCY ANALYTICS An error has occurred while generating this section of the report. You may try it again. If the error persists, please report the error to our customer support at Costar.com

5/13/2019 Copyrighted report licensed to CoStar Group - 986887. Page 23 Commercial . U R Rent Analytics

COMMERCIAL . U R RENT ANALYTICS An error has occurred while generating this section of the report. You may try it again. If the error persists, please report the error to our customer support at Costar.com

5/13/2019 Copyrighted report licensed to CoStar Group - 986887. Page 24 Absorption Analytics 828 Lathrop St

NET ABSORPTION IN PEERS IN SQUARE FEET

NET ABSORPTION IN INNER LOOP EAST END SUBMARKET IN SQUARE FEET

NET ABSORPTION IN HOUSTON IN SQUARE FEET

5/13/2019 Copyrighted report licensed to CoStar Group - 986887. Page 25 Leasing Analytics 828 Lathrop St

LEASING ACTIVITY IN PEERS IN SQUARE FEET

LEASING ACTIVITY IN INNER LOOP EAST END SUBMARKET IN SQUARE FEET

LEASING ACTIVITY IN HOUSTON IN SQUARE FEET

5/13/2019 Copyrighted report licensed to CoStar Group - 986887. Page 26 Leasing Analytics 828 Lathrop St

SUBLEASE SPACE AVAILABLE IN HOUSTON IN SQUARE FEET

5/13/2019 Copyrighted report licensed to CoStar Group - 986887. Page 27 Construction 828 Lathrop St 8,400 SF Retail Freestanding Houston, TX 77020 - Inner Loop East End Submarket

PREPARED BY

Anthony Rigg Research Associate II Overall Construction Summary 828 Lathrop St

All-Time Annual Avg. SF Delivered SF Past 4 Qtrs Delivered SF Next 4 Qtrs Proposed SF Next 4 Qtrs 90,460 57,575 130,300 37,445

PAST 4 QUARTERS DELIVERIES, UNDER CONSTRUCTION, & PROPOSED

PAST & FUTURE DELIVERIES IN SQUARE FEET

5/13/2019 Copyrighted report licensed to CoStar Group - 986887. Page 29 Houston Construction 828 Lathrop St

As of 19Q1, Houston led the nation in new retail in Cypress/Bridgeland, the 120,000-SF Lifetime Fitness deliveries over a 12-month period, with 4,636,127 SF. in Friendswood, and the 110,000-SF Walmart in As of the same quarter, Houston ranked third in SF Richmond. Grocery stores have experienced strong under construction, with 4,091,833 SF, after New York growth this cycle, with almost 50 opening in the Houston and Dallas-Fort Worth. Meanwhile, construction starts metro during that time. H-E-B has been very active were down significantly from a peak of over 2.3 million lately. SF in 16Q1. Developers delivered significantly less (almost half as much) this cycle than they did last cycle, There is a notable concentration of new construction even as Houston went neck-and-neck with Dallas-Fort projects near the fast-growing suburbs of Katy/Cinco Worth in terms of nation-leading population and Ranch and The Woodlands, chasing after master- employment growth. This strong demand matched with planned community growth, with comparatively little retail limited new supply has kept a lid on Houston’s vacancy development occurring inside the loop. As of 19Q1, there rate. were five developments of more than 100,000 SF under construction, mostly in suburban areas. ExxonMobil’s Moreover, very few retail developers are building spec move to North Houston has paved the way for shopping centers today; a lot of the larger retail shopping construction along the Grand Parkway, opening a new centers that are getting capitalized sign a large anchor corridor for retail development. The oil major’s move to tenant. Most of the new development that is taking place the metro’s hinterland in 2015 has been a true game is occurring in outlying suburban areas chasing rooftop changer. Consolidating more than 10,000 workers in this growth. Areas that used to feel fairly distant from the city previously underdeveloped area has presented a center are starting to grow rapidly and densify. Some of tremendous opportunity for new retail projects to the the largest retail deals to deliver in 2018 included north. freestanding big boxes: the 150,000-SF Lifetime Athletic

DELIVERIES & DEMOLITIONS

5/13/2019 Copyrighted report licensed to CoStar Group - 986887. Page 30 Inner Loop East End Construction 828 Lathrop St

CONSTRUCTION An error has occurred while generating this section of the report. You may try it again. If the error persists, please report the error to our customer support at Costar.com

5/13/2019 Copyrighted report licensed to CoStar Group - 986887. Page 31 Construction Activity 828 Lathrop St

UNDER CONSTRUCTION IN SQUARE FEET (5 Mile Radius)

PROJECTED DELIVERIES IN SQUARE FEET (5 Mile Radius)

5/13/2019 Copyrighted report licensed to CoStar Group - 986887. Page 32 Construction Activity 828 Lathrop St

DELIVERIES IN SQUARE FEET (5 Mile Radius)

STARTS IN SQUARE FEET (5 Mile Radius)

5/13/2019 Copyrighted report licensed to CoStar Group - 986887. Page 33 Construction Activity 828 Lathrop St

PERCENT OCCUPIED AT DELIVERY (5 Mile Radius)

DELIVERIES AND OCCUPANCY IN SQUARE FEET (5 Mile Radius)

5/13/2019 Copyrighted report licensed to CoStar Group - 986887. Page 34 Construction Activity 828 Lathrop St

NEW CONSTRUCTION OCCUPANCY AFTER DELIVERY BY YEAR BUILT (5 Mile Radius)

NET ABSORPTION IN SQUARE FEET (5 Mile Radius)

5/13/2019 Copyrighted report licensed to CoStar Group - 986887. Page 35 Construction Activity 828 Lathrop St

NNN ASKING RENT PER SQUARE FOOT (5 Mile Radius)

5/13/2019 Copyrighted report licensed to CoStar Group - 986887. Page 36 Completed Construction Past 12 Months 828 Lathrop St

Properties Square Feet Percent Leased NNN Asking Rent Per SF 9 68,751 83.2% $16.59

COMPLETED CONSTRUCTION PAST 12 MONTHS

CONSTRUCTION SUMMARY STATISTICS

Low Average Median High GLA 1,312 7,639 6,000 30,000

Stories 1 1 1 1

Typical Floor SF 1,312 8,206 6,394 30,000

Leases Signed 0 0 0 1

Percent Leased 0% 83.2% 100% 100%

NNN Asking Rent Per SF $14.55 $16.59 $15.10 $25.00

Star Rating 3.0

5/13/2019 Copyrighted report licensed to CoStar Group - 986887. Page 37 Completed Construction Past 12 Months 828 Lathrop St

Property Name/Address Rating GLA Stories Complete Leased Developer/Owner 6,750 SF Retail Center -… - 1 6,750 1 Apr-2019 44.6% Lockwood Dr Prosperity United Holdings LLC Dollar General - 2 4,400 1 Dec-2018 100% 5001 Lockwood Dr Jerry & Alzana Crawford 2008 S Wayside Dr - 3 6,925 1 Oct-2018 100% ORR Commercial 12003 E I-10 Fwy - 4 3,500 - Aug-2018 100% G S M Wings LLC East Village - 5 30,000 1 Jul-2018 100% 1201 St Emanuel St Ancorian LLC 5602 Lyons Ave - 6 6,000 - Jul-2018 100% Lovett Commercial 3509 Elgin St - 7 7,800 1 May-2018 0% - 1617 Dumble St - 8 1,312 1 May-2018 100% - 7102 Lyons Ave - 9 2,064 1 Apr-2018 100% Nick Dahu

5/13/2019 Copyrighted report licensed to CoStar Group - 986887. Page 38 Deliveries Past 12 Months Property Details 828 Lathrop St

1 Lockwood Dr @ Tremper - 6,750 SF Retail Center - Pre Leasing Distance to Subject Property: 0.8 Miles

PROPERTY Type: Bank Land Acres: 1.16 AC GLA: 6,750 SF Building FAR: 0.13 Floors: 1 Construction: - Parking: - Features: - Frontage: -

CONSTRUCTION AVAILABILITY Start Date: Sep-2018 Percent Leased: 44.6% Completion: Apr-2019 Square Feet: 3,739 Build Time: 7 Months CoStar Est: $14 - 17 Time Since Delivery: 1 Month

CONTACTS Developer: - Owner: Prosperity United Holdings LLC

2 5001 Lockwood Dr - Dollar General Distance to Subject Property: 2.4 Miles

PROPERTY Type: - Land Acres: - GLA: 4,400 SF Building FAR: - Floors: 1 Construction: - Parking: - Features: - Frontage: -

CONSTRUCTION AVAILABILITY Start Date: Jan-2018 Percent Leased: 100% Completion: Dec-2018 Square Feet: - Build Time: 11 Months CoStar Est: $13 - 16 Time Since Delivery: 5 Months

CONTACTS Developer: - Owner: Jerry & Alzana Crawford

5/13/2019 Copyrighted report licensed to CoStar Group - 986887. Page 39 Deliveries Past 12 Months Property Details 828 Lathrop St

3 2008 S Wayside Dr Distance to Subject Property: 4.0 Miles

PROPERTY Type: - Land Acres: 2.58 AC GLA: 6,925 SF Building FAR: 0.06 Floors: 1 Construction: - Parking: - Features: - Frontage: -

CONSTRUCTION AVAILABILITY Start Date: Aug-2018 Percent Leased: 100% Completion: Oct-2018 Square Feet: - Build Time: 2 Months CoStar Est: $13 - 16 Time Since Delivery: 7 Months

CONTACTS Developer: - Owner: ORR Commercial

4 12003 E I-10 Fwy Distance to Subject Property: 4.6 Miles

PROPERTY Type: - Land Acres: - GLA: 3,500 SF Building FAR: - Floors: - Construction: - Parking: - Features: - Frontage: -

CONSTRUCTION AVAILABILITY Start Date: Dec-2017 Percent Leased: 100% Completion: Aug-2018 Square Feet: - Build Time: 8 Months CoStar Est: $14 - 17 Time Since Delivery: 9 Months

CONTACTS Developer: - Owner: G S M Wings LLC

5/13/2019 Copyrighted report licensed to CoStar Group - 986887. Page 40 Deliveries Past 12 Months Property Details 828 Lathrop St

5 1201 St Emanuel St - East Village Distance to Subject Property: 3.7 Miles

PROPERTY Type: Freestanding Land Acres: 1.84 AC GLA: 30,000 SF Building FAR: 0.37 Floors: 1 Construction: - Parking: - Features: - Frontage: 243' on Emanuel St

CONSTRUCTION AVAILABILITY Start Date: Dec-2017 Percent Leased: 100% Completion: Jul-2018 Square Feet: - Build Time: 7 Months CoStar Est: $14 - 17 Time Since Delivery: 10 Months

CONTACTS Developer: - Owner: Ancorian LLC

6 5602 Lyons Ave Distance to Subject Property: 0.8 Miles

PROPERTY Type: - Land Acres: - GLA: 6,000 SF Building FAR: - Floors: - Construction: - Parking: - Features: - Frontage: -

CONSTRUCTION AVAILABILITY Start Date: Dec-2017 Percent Leased: 100% Completion: Jul-2018 Square Feet: - Build Time: 7 Months CoStar Est: $13 - 16 Time Since Delivery: 10 Months

CONTACTS Developer: - Owner: Lovett Commercial

5/13/2019 Copyrighted report licensed to CoStar Group - 986887. Page 41 Deliveries Past 12 Months Property Details 828 Lathrop St

7 3509 Elgin St Distance to Subject Property: 4.2 Miles

PROPERTY Type: - Land Acres: - GLA: 7,800 SF Building FAR: - Floors: 1 Construction: - Parking: - Features: - Frontage: -

CONSTRUCTION AVAILABILITY Start Date: Dec-2017 Percent Leased: 0% Completion: May-2018 Square Feet: 7,800 Build Time: 5 Months Asking Rent: $25.00 Time Since Delivery: 12 Months

CONTACTS Developer: - Owner: -

8 1617 Dumble St Distance to Subject Property: 3.3 Miles

PROPERTY Type: - Land Acres: - GLA: 1,312 SF Building FAR: - Floors: 1 Construction: - Parking: - Features: - Frontage: -

CONSTRUCTION AVAILABILITY Start Date: Sep-2017 Percent Leased: 100% Completion: May-2018 Square Feet: - Build Time: 8 Months CoStar Est: $14 - 17 Time Since Delivery: 12 Months

CONTACTS Developer: - Owner: -

5/13/2019 Copyrighted report licensed to CoStar Group - 986887. Page 42 Deliveries Past 12 Months Property Details 828 Lathrop St

9 7102 Lyons Ave Distance to Subject Property: 0.3 Miles

PROPERTY Type: Restaurant Land Acres: 0.21 AC GLA: 2,064 SF Building FAR: 0.23 Floors: 1 Construction: - Parking: - Features: - Frontage: -

CONSTRUCTION AVAILABILITY Start Date: Dec-2017 Percent Leased: 100% Completion: Apr-2018 Square Feet: - Build Time: 4 Months Asking Rent: $23.28 Time Since Delivery: 13 Months

CONTACTS Developer: - Owner: Nick Dahu

5/13/2019 Copyrighted report licensed to CoStar Group - 986887. Page 43 Under Construction Summary 828 Lathrop St

Properties Square Feet Percent of Inventory Preleased 5 130,300 1.1% 22.3%

UNDER CONSTRUCTION PROPERTIES

UNDER CONSTRUCTION SUMMARY STATISTICS

Low Average Median High Building SF 12,000 26,060 22,500 44,000

Stories 1 1 2 2

Typical Floor SF 6,000 20,530 11,250 44,000

Preleasing 0% 22.3% 31.5% 73.7%

Estimated Delivery Date June 2019 September 2019 October 2019 December 2019

Months to Delivery 1 4 5 7

Construction Period in Months 5 13 8 35

Star Rating 3.6

5/13/2019 Copyrighted report licensed to CoStar Group - 986887. Page 44 Under Construction Property Details 828 Lathrop St

1 2008 S Wayside Dr Distance to Subject Property: 4.0 Miles

PROPERTY Type: Storefront Retail/Office Land Acres: 2.58 AC GLA: 22,500 SF Building FAR: 0.20 Floors: 2 Construction: - Parking: Ratio of 0.00/1,000 SF Features: - Frontage: -

CONSTRUCTION AVAILABILITY Start Date: Jan-2019 Percent Leased: 0% Completion: Jun-2019 Square Feet: 22,500 Build Time: 5 Months CoStar Est: $14 - 17 Delivery: 1 Month

CONTACTS Developer: - Owner: ORR Commercial

2 2339 Commerce St - The Block Distance to Subject Property: 2.9 Miles

PROPERTY Type: Freestanding Land Acres: 1.85 AC GLA: 44,000 SF Building FAR: 0.55 Floors: 1 Construction: Metal Parking: 200 Surface Spaces are available; Ratio of 4.54/1,000 SF Features: - Frontage: 100' on Commerce St, 100' on Canal St

CONSTRUCTION AVAILABILITY Start Date: Nov-2018 Percent Leased: 0% Completion: Oct-2019 Square Feet: 44,000 Build Time: 11 Months CoStar Est: $14 - 17 Delivery: 5 Months

CONTACTS Developer: Ancorian LLC Owner: -

5/13/2019 Copyrighted report licensed to CoStar Group - 986887. Page 45 Under Construction Property Details 828 Lathrop St

3 1818 Washington Ave - 1818 Washington Ave Distance to Subject Property: 4.5 Miles

PROPERTY Type: - Land Acres: - GLA: 20,800 SF Building FAR: - Floors: 2 Construction: - Parking: - Features: - Frontage: -

CONSTRUCTION AVAILABILITY Start Date: Feb-2019 Percent Leased: 50.0% Completion: Oct-2019 Square Feet: 10,400 Build Time: 8 Months CoStar Est: $26 - 32 Delivery: 5 Months

CONTACTS Developer: - Owner: -

4 2645 N Main St - Oui Eats at Little White Oak Distance to Subject Property: 3.9 Miles

PROPERTY Type: Restaurant Land Acres: 0.36 AC GLA: 12,000 SF Building FAR: 0.77 Floors: 2 Construction: - Parking: - Features: - Frontage: -

CONSTRUCTION AVAILABILITY Start Date: Apr-2019 Percent Leased: 73.7% Completion: Nov-2019 Square Feet: 3,160 Build Time: 7 Months CoStar Est: $16 - 20 Delivery: 6 Months

CONTACTS Developer: - Owner: Rodriguez George V & Alida F

5/13/2019 Copyrighted report licensed to CoStar Group - 986887. Page 46 Under Construction Property Details 828 Lathrop St

5 411 Smith St - Lyric Market Food Hall Distance to Subject Property: 3.8 Miles

PROPERTY Type: Strip Center Land Acres: 1.48 AC GLA: 31,000 SF Building FAR: 0.48 Floors: 1 Construction: Reinforced Concrete Parking: 600 Covered Spaces are available; Ratio of 10.00/1,000 SF Features: 24 Hour Access, Air Conditioning, Atrium, Bus Line, Corner Lot, Courty… Frontage: 350' on Smith/Preston/Louisiana

CONSTRUCTION AVAILABILITY Start Date: Jan-2017 Percent Leased: 31.5% Completion: Dec-2019 Square Feet: 21,240 Build Time: 35 Months CoStar Est: $17 - 20 Delivery: 7 Months

CONTACTS Developer: Hines Owner: Cecilia Garrett

5/13/2019 Copyrighted report licensed to CoStar Group - 986887. Page 47 Sale Comps 828 Lathrop St 8,400 SF Retail Freestanding Houston, TX 77020 - Inner Loop East End Submarket

PREPARED BY

Anthony Rigg Research Associate II Investment Trends 828 Lathrop St

Sale Comparables Avg. Cap Rate Avg. Price/SF Avg. Vacancy At Sale 14 6.9% $189 0%

SALE COMPARABLE LOCATIONS

SALE COMPARABLES SUMMARY STATISTICS

Sales Attributes Low Average Median High Sale Price $250,000 $1,139,246 $1,286,701 $1,733,580

Price Per SF $56 $189 $197 $283

Cap Rate 6.2% 6.9% 6.8% 7.8%

Time Since Sale in Months 1.5 18.5 19.9 34.6

Property Attributes Low Average Median High Building SF 4,240 6,174 6,091 8,320

Stories 1 1 1 1

Typical Floor SF 4,240 6,116 5,954 8,320

Vacancy Rate At Sale 0% 0% 0% 0%

Year Built 1940 1986 1997 2015

Star Rating 1.9

5/13/2019 Copyrighted report licensed to CoStar Group - 986887. Page 49 Investment Trends 828 Lathrop St

Property Sale

Property Name - Address Rating Yr Built Bldg SF Vacancy Sale Date Price Price/SF Cap Rate Advance Auto Parts 1 - 2008 6,131 0% 3/28/2019 $1,733,580 $283 6.2% 909 Telephone Rd 6503 Harrisburg Blvd 2 - 1997 6,050 0% 6/28/2018 - - -

1919 N Main St 3 - 1965 4,335 0% 6/27/2018 - - -

6503 Harrisburg Blvd 2 - 1997 6,050 0% 6/14/2018 - - -

6503 Harrisburg Blvd 2 - 1997 6,050 0% 6/4/2018 - - -

Advance Auto Parts 1 - 2008 6,131 0% 12/28/2017 $1,592,259 $260 6.8% 909 Telephone Rd 11015 Market Street Rd 4 - 1960 6,770 0% 11/10/2017 - - -

Family Dollar #10269 5 - 2013 8,320 0% 7/19/2017 - - - 3103 Collingsworth St 1107 Chartres St 6 - 1940 7,300 0% 6/28/2017 - - -

4327 Canal St 7 - 1950 4,500 0% 5/31/2017 $250,000 $56 -

2601 Fulton St 8 - 2005 7,360 0% 4/18/2017 $981,143 $133 7.8%

1801 St Emanuel St 9 - 1982 4,880 0% 3/16/2017 - - -

Family Dollar 10 - 2015 8,320 0% 2/1/2017 - - - 3302 Liberty Rd 7840-7844 Harrisburg Blvd 11 - 1970 4,240 0% 6/24/2016 - - -

5/13/2019 Copyrighted report licensed to CoStar Group - 986887. Page 50 Investment Trends 828 Lathrop St

HOUSTON INVESTMENT TRENDS

Nearly three-quarters of buyers last year were private In September 2018, Dallas-based Spectrum Properties capital versus approximately 15% institutional. Similar to acquired the 50,000-SF, two-story Bellaire Triangle H- Houston multifamily, retail largely remains the domain of E-B from New York-based Brixmor Property Group for a private owners. Cap rates are near cyclical lows at an confirmed price of $17.3 million SF ($338/SF). The average of 6.7%. And transaction volume in 2018 was property was fully leased, and the cap rate was 4.98% at coming off of a cyclical high in 2017, as a few large the time of sale. trades skewed the market, representing an approximately 25% year-over-year decrease. However, transaction And in May 2018, a joint venture between BayNorth volume remained exceedingly strong. Capital of Boston and locally based Fidelis Realty Partners sold the three-property, 125,500-SF Some of the largest transactions that took place in Tanglewood Court, located west of the Galleria area, to Houston in 2018 involved H-E-B grocery store- American Realty Advisors of Los Angeles. The portfolio anchored centers and large portfolio trades involving included a 90,000-SF H-E-B, a 32,000-SF shopping super regional malls. There were also a lot of smaller center, and a 3,500-SF Mercantil Commerce Bank, and deals that sold last year in the $5–$10 million range, it traded for about $74.8 million ($596/SF). The portfolio especially for properties located inside the Loop and was fully leased at the time of sale and remained as particularly in the Heights. There is strong appetite from such in 18Q4. capital for really well-located retail, and these deals are selling in the 4%–5% cap rate range. By far the largest trade to impact Houston and several U.S. metros in 2018 was Brookfield Property Partners In the fourth quarter of 2018, locally based Baker Katz, LP’s acquisition of GGP, Inc. in August 2018 for $15 LLC purchased the 850,000-SF PlazAmericas Mall (the billion and included 577 properties. This included over 20 former Sharpstown Mall, the first enclosed mall in million SF in Houston, including super regional malls The Houston) from Philadelphia-based RAIT Financial Trust Woodlands Mall, First Colony Mall, Baybrook Mall, for an undisclosed price. It was approximately 70% Deerbrook Mall, and Willowbrook Mall. The day before leased at the time of sale. the closing on the acquisition of GGP, there was a smaller transaction (consisting of three malls) that closed In October 2018, Chicago-based Nuveen Global Cities in a joint venture between GGP Inc and Brookfield and REIT, Inc. purchased the entire 185,000-SF Main Street CBRE Global Investors for an undisclosed price. The at Kingwood Shopping Center from Houston-based joint venture was for 49% ownership interest in the malls. Lovett Commercial for $85.5 million ($460/SF). The Moreover, in an August press release, TH Real Estate center was 98% leased, it included a 106,000-SF H-E- announced that they had acquired three super regional B, and the buyer reported the in-place rent at malls from Brookfield Property Partners. The statement $53.52/SF. A 44,450-SF medical office building noted that the portfolio deal totaled over 4.7 million SF of developed by the seller was not included in the GLA and that they paid $714 million. In Houston, this transaction. included the approximately 1-million-SF Baybrook Mall, which was 100% leased at the time of sale.

5/13/2019 Copyrighted report licensed to CoStar Group - 986887. Page 51 Investment Trends 828 Lathrop St

SALES VOLUME & MARKET SALE PRICE PER SF

5/13/2019 Copyrighted report licensed to CoStar Group - 986887. Page 52 Sale Comp Details 828 Lathrop St

1 909 Telephone Rd - Advance Auto Parts Distance to Subject Property: 3.2 Miles SALE CONTACTS Sale Type: Investment Buyer: Janet Bartsch Sale Date: 3/28/2019 Seller: Suhyan An Sale Price: $1,733,580 Buyer Broker: Lewis Property Compa… Price/SF: $283 Listing Broker: Belvoir Real Estate Gro… Cap Rate: 6.2%

SALE TERMS Sale Conditions: Investment Triple Net Financing: -

LARGEST TENANTS AT SALE

Tenant Store Type SF Occupied Chain Move Date Exp Date Advance Auto Parts Automotive 6,145 Yes Oct 2008 Oct 2023

5/13/2019 Copyrighted report licensed to CoStar Group - 986887. Page 53 Sale Comp Details 828 Lathrop St

2 6503 Harrisburg Blvd Distance to Subject Property: 2.5 Miles SALE CONTACTS Sale Type: Owner User Buyer: Din Madwani Sale Date: 6/28/2018 Seller: Kingwood Petroleume… Sale Price: - Buyer Broker: - Price/SF: - Listing Broker: - Cap Rate: -

SALE TERMS Sale Conditions: - Financing: 1st Mortgage: Mint National Bank

PROPERTY Type: Freestanding Land Acres: 0.77 AC Sale Vacancy: 0% Construction: - Tenancy: Single Yr Built/Renov: 1997 GLA: 6,050 SF Building FAR: 0.18 Anchor GLA: - Total Expenses: - Anchor Tenant - Parking: - Features: - Frontage: 108' on Harrisburg For Sale: Not For Sale Location Score: 68 Walk Score®: Somewhat Walkable (68) Transit Score®: Good Transit (62) SALE NOTES On June 28, 2018 the property at 6503 Harrisburg Blvd. sold. The site is current retail strip center and gas/service station that was acquired by an owner/user buyer. The transaction was under contract for approximately 30 days and the buyer secured financing on the deal with a 20% down payment. The details of this transaction were verified with the buyer.

5/13/2019 Copyrighted report licensed to CoStar Group - 986887. Page 54 Sale Comp Details 828 Lathrop St

3 1919 N Main St Distance to Subject Property: 3.6 Miles SALE CONTACTS Sale Type: - Buyer: Dumble Warehouse Llc Sale Date: 6/27/2018 Seller: Moreno Laura R Sale Price: - Buyer Broker: - Price/SF: - Listing Broker: - Cap Rate: -

SALE TERMS Sale Conditions: - Financing: 1st Mortgage

PROPERTY Type: Freestanding Land Acres: 0.10 AC Sale Vacancy: 0% Construction: Masonry Tenancy: Single Yr Built/Renov: 1965 GLA: 4,335 SF Building FAR: 1.00 Anchor GLA: - Total Expenses: - Anchor Tenant - Parking: - Features: - Frontage: 56' on N Main St For Sale: $315,000 ($72.66/SF) - Active Location Score: 93 Walk Score®: Very Walkable (71) Transit Score®: Good Transit (67)

5/13/2019 Copyrighted report licensed to CoStar Group - 986887. Page 55 Sale Comp Details 828 Lathrop St

2 6503 Harrisburg Blvd Distance to Subject Property: 2.5 Miles SALE CONTACTS Sale Type: - Buyer: 6503 Harrisburg Inc Sale Date: 6/14/2018 Seller: Adam Hanifa Sale Price: - Buyer Broker: - Price/SF: - Listing Broker: - Cap Rate: -

SALE TERMS Sale Conditions: - Financing: -

5/13/2019 Copyrighted report licensed to CoStar Group - 986887. Page 56 Sale Comp Details 828 Lathrop St

2 6503 Harrisburg Blvd Distance to Subject Property: 2.5 Miles SALE CONTACTS Sale Type: - Buyer: 6503 Harrisburg Inc Sale Date: 6/4/2018 Seller: Adam Hanifa Sale Price: - Buyer Broker: - Price/SF: - Listing Broker: - Cap Rate: -

SALE TERMS Sale Conditions: - Financing: -

5/13/2019 Copyrighted report licensed to CoStar Group - 986887. Page 57 Sale Comp Details 828 Lathrop St

1 909 Telephone Rd - Advance Auto Parts Distance to Subject Property: 3.2 Miles SALE CONTACTS Sale Type: Investment Buyer: Suhyan An Sale Date: 12/28/2017 Seller: Madan Family 2003 Trust Sale Price: $1,592,259 Buyer Broker: Marcus & Millichap - P… Price/SF: $260 Listing Broker: Marcus & Millichap - P… Cap Rate: 6.8%

SALE TERMS Sale Conditions: Investment Triple Net Financing: 1st Mortgage

PROPERTY Type: Freestanding Land Acres: 0.50 AC Sale Vacancy: 0% Construction: - Tenancy: Single Yr Built/Renov: 2008 GLA: 6,131 SF Building FAR: 0.28 Anchor GLA: - Total Expenses: - Anchor Tenant - Parking: - Features: - Frontage: - For Sale: Not For Sale Location Score: 92 Walk Score®: Very Walkable (72) Transit Score®: Good Transit (60) SALE NOTES Fee simple sale of a triple net leased Advance Auto Parts. 7 years left ion lease with three 5- year options with 7.5% bumps. 6.75 cap on actual income.

LARGEST TENANTS AT SALE

Tenant Store Type SF Occupied Chain Move Date Exp Date Advance Auto Parts Automotive 6,145 Yes Oct 2008 Oct 2023

5/13/2019 Copyrighted report licensed to CoStar Group - 986887. Page 58 Sale Comp Details 828 Lathrop St

4 11015 Market Street Rd Distance to Subject Property: 4.0 Miles SALE CONTACTS Sale Type: - Buyer: Oscar Carrasco Sale Date: 11/10/2017 Seller: Cisneros Victoria & Ric… Sale Price: - Buyer Broker: - Price/SF: - Listing Broker: - Cap Rate: -

SALE TERMS Sale Conditions: - Financing: 1st Mortgage

PROPERTY Type: Freestanding Land Acres: 0.38 AC Sale Vacancy: 0% Construction: - Tenancy: Single Yr Built/Renov: 1960 GLA: 6,770 SF Building FAR: 0.41 Anchor GLA: - Total Expenses: - Anchor Tenant - Parking: 10 free Surface Spaces are available; Ratio of 1.48/1,000 SF Features: - Frontage: 50' on Market For Sale: Not For Sale Location Score: 66 Walk Score®: Very Walkable (77) Transit Score®: Some Transit (32)

5/13/2019 Copyrighted report licensed to CoStar Group - 986887. Page 59 Sale Comp Details 828 Lathrop St

5 3103 Collingsworth St - Family Dollar #10269 Distance to Subject Property: 2.6 Miles SALE CONTACTS Sale Type: Investment Buyer: Pavan Achuta Sale Date: 7/19/2017 Seller: MP Commercial Partners Sale Price: - Buyer Broker: Trinity Real Estate Inve… Price/SF: - Listing Broker: KW Commercial - Brad… Cap Rate: -

SALE TERMS Sale Conditions: Investment Triple Net Financing: 1st Mortgage: Trustmark National Bank

PROPERTY Type: Freestanding Land Acres: 1.00 AC Sale Vacancy: 0% Construction: Reinforced Concrete Tenancy: Single Yr Built/Renov: 2013 GLA: 8,320 SF Building FAR: 0.19 Anchor GLA: - Total Expenses: - Anchor Tenant - Parking: 13 Surface Spaces are available; Ratio of 1.56/1,000 SF Features: Signage Frontage: 245' on Collingsworth St For Sale: Not For Sale Location Score: 86 Walk Score®: Somewhat Walkable (58) Transit Score®: Some Transit (43) SALE NOTES The buyer & his broker confirmed the transaction but could not disclose or confirm the sale price. A source whom CoStar Group Deems reliable was showing a sale price of about $1,721,205 but is unconfirmed. The buyers broker confirmed that the property closed after a 60 day escrow with no sale conditions affecting the value of the property or the motivations of the parites. This was a NNN investment sale for a single-tenant freestanding retail property occupied by Family Dollar store. the Net income reported for the property was at $129,951. Building was built in 2013.

LARGEST TENANTS AT SALE

Tenant Store Type SF Occupied Chain Move Date Exp Date Family Dollar Store Dollar/Variety/Thrift 8,320 Yes Sep 2013 -

5/13/2019 Copyrighted report licensed to CoStar Group - 986887. Page 60 Sale Comp Details 828 Lathrop St

6 1107 Chartres St Distance to Subject Property: 3.7 Miles SALE CONTACTS Sale Type: - Buyer: Susan Joe, Wahoo S &… Sale Date: 6/28/2017 Seller: Joe Wahoo S Sale Price: - Buyer Broker: - Price/SF: - Listing Broker: - Cap Rate: -

SALE TERMS Sale Conditions: - Financing: -

PROPERTY Type: Freestanding Land Acres: 0.21 AC Sale Vacancy: 0% Construction: Masonry Tenancy: Single Yr Built/Renov: 1940; Renov 1980 GLA: 7,300 SF Building FAR: 0.81 Anchor GLA: - Total Expenses: - Anchor Tenant - Parking: 3 free Surface Spaces are available Features: - Frontage: 100' on Chartres St (with 1 curb cut) For Sale: Not For Sale Location Score: 93 Walk Score®: Very Walkable (81) Transit Score®: Excellent Transit (84)

5/13/2019 Copyrighted report licensed to CoStar Group - 986887. Page 61 Sale Comp Details 828 Lathrop St

7 4327 Canal St Distance to Subject Property: 2.4 Miles SALE CONTACTS Sale Type: Owner User Buyer: - Sale Date: 5/31/2017 Seller: Molina Eduardo Sale Price: $250,000 Buyer Broker: - Price/SF: $56 Listing Broker: Re/Max Exclusive - Yei… Cap Rate: -

SALE TERMS Sale Conditions: - Financing: -

PROPERTY Type: Freestanding Land Acres: 0.21 AC Sale Vacancy: 0% Construction: Masonry Tenancy: Single Yr Built/Renov: 1950 GLA: 4,500 SF Building FAR: 0.49 Anchor GLA: - Total Expenses: - Anchor Tenant - Parking: Ratio of 1.33/1,000 SF Features: - Frontage: 64' on Canal St (with 1 curb cut) For Sale: Not For Sale Location Score: 94 Walk Score®: Somewhat Walkable (69) Transit Score®: Good Transit (61)

5/13/2019 Copyrighted report licensed to CoStar Group - 986887. Page 62 Sale Comp Details 828 Lathrop St

8 2601 Fulton St Distance to Subject Property: 3.7 Miles SALE CONTACTS Sale Type: Investment Buyer: Alan Charap Sale Date: 4/18/2017 Seller: MFT Interests GP, LLC Sale Price: $981,143 Buyer Broker: Hunington Properties, I… Price/SF: $133 Listing Broker: SRS National Net Leas… Cap Rate: 7.8%

SALE TERMS Sale Conditions: - Financing: -

PROPERTY Type: Freestanding Land Acres: 1.01 AC Sale Vacancy: 0% Construction: Masonry Tenancy: Single Yr Built/Renov: 2005 GLA: 7,360 SF Building FAR: 0.17 Anchor GLA: - Total Expenses: - Anchor Tenant - Parking: 25 free Surface Spaces are available; Ratio of 4.50/1,000 SF Features: Pylon Sign Frontage: 93' on Fulton St (with 4 curb cuts) For Sale: Not For Sale Location Score: 94 Walk Score®: Very Walkable (79) Transit Score®: Good Transit (58) SALE NOTES The property was sold as an investment with a 7.79% cap rate with some units vacant and still available for lease. No sale conditions were reported to have affected the value of the sale.

LARGEST TENANTS AT SALE

Tenant Store Type SF Occupied Chain Move Date Exp Date AutoZone Automotive 7,360 Yes Nov 2018 -

5/13/2019 Copyrighted report licensed to CoStar Group - 986887. Page 63 Sale Comp Details 828 Lathrop St

9 1801 St Emanuel St Distance to Subject Property: 4.0 Miles SALE CONTACTS Sale Type: Investment Buyer: Guy Fong & Wa Li Ptshp Sale Date: 3/16/2017 Seller: B Estate Llc Sale Price: - Buyer Broker: - Price/SF: - Listing Broker: RE/MAX Top Realty - A… Cap Rate: -

SALE TERMS Sale Conditions: Debt Assumption Financing: 1st Mortgage

PROPERTY Type: Freestanding Land Acres: 0.72 AC Sale Vacancy: 0% Construction: Masonry Tenancy: Single Yr Built/Renov: 1982 GLA: 4,880 SF Building FAR: 0.16 Anchor GLA: - Total Expenses: - Anchor Tenant - Parking: 65 Surface Spaces are available; Ratio of 7.59/1,000 SF Features: - Frontage: 94' on St Emanuel St (with 2 curb cuts) For Sale: Not For Sale Location Score: 82 Walk Score®: Somewhat Walkable (69) Transit Score®: Excellent Transit (71) SALE NOTES The property sold in shell condition to an investor from California. This was formerly the Kim Son Restaurant. The seller carried the loan with a $1M debt assumption and 20% downpayment. Per the listing broker the buyer intends to lease out the property and build out maybe a consideration.

5/13/2019 Copyrighted report licensed to CoStar Group - 986887. Page 64 Sale Comp Details 828 Lathrop St

10 3302 Liberty Rd - Family Dollar Distance to Subject Property: 2.2 Miles SALE CONTACTS Sale Type: - Buyer: Fletcher Gloria Living… Sale Date: 2/1/2017 Seller: Hutton Growth One LLC Sale Price: - Buyer Broker: - Price/SF: - Listing Broker: - Cap Rate: -

SALE TERMS Sale Conditions: - Financing: -

PROPERTY Type: Freestanding Land Acres: 1.26 AC Sale Vacancy: 0% Construction: - Tenancy: Single Yr Built/Renov: 2015 GLA: 8,320 SF Building FAR: 0.15 Anchor GLA: - Total Expenses: - Anchor Tenant - Parking: - Features: - Frontage: 211' on Liberty Rd For Sale: Not For Sale Location Score: 55 Walk Score®: Somewhat Walkable (51) Transit Score®: Some Transit (43)

LARGEST TENANTS AT SALE

Tenant Store Type SF Occupied Chain Move Date Exp Date Family Dollar Store Dollar/Variety/Thrift 8,320 Yes Feb 2015 Feb 2030

5/13/2019 Copyrighted report licensed to CoStar Group - 986887. Page 65 Sale Comp Details 828 Lathrop St

11 7840-7844 Harrisburg Blvd Distance to Subject Property: 3.2 Miles SALE CONTACTS Sale Type: Investment Buyer: Export & Net Llc Sale Date: 6/24/2016 Seller: O & J Carwash Inc Sale Price: - Buyer Broker: - Price/SF: - Listing Broker: - Cap Rate: -

SALE TERMS Sale Conditions: - Financing: 1st Mortgage

PROPERTY Type: Freestanding Land Acres: 0.50 AC Sale Vacancy: 0% Construction: Masonry Tenancy: Single Yr Built/Renov: 1970 GLA: 4,240 SF Building FAR: 0.20 Anchor GLA: - Total Expenses: - Anchor Tenant - Parking: - Features: - Frontage: 155' on Harrisburg Blvd (with 2 curb cuts), 141' on S 79th St (with 3 c… For Sale: Not For Sale Location Score: 76 Walk Score®: Somewhat Walkable (60) Transit Score®: Some Transit (43)

5/13/2019 Copyrighted report licensed to CoStar Group - 986887. Page 66 Sales Volume 828 Lathrop St

INNER LOOP EAST END SUBMARKET SALES VOLUME IN SQUARE FEET

INNER LOOP SUBMARKET CLUSTER SALES VOLUME IN SQUARE FEET

HOUSTON METRO SALES VOLUME IN SQUARE FEET

5/13/2019 Copyrighted report licensed to CoStar Group - 986887. Page 67 Sales Pricing 828 Lathrop St

NATIONAL PRICE INDICES

REGIONAL RETAIL PRICE INDICES

5/13/2019 Copyrighted report licensed to CoStar Group - 986887. Page 68 Sales Pricing 828 Lathrop St

PRICE PER SF INDEX

UNITED STATES RETAIL PRICE PER SF IN PAST YEAR HOUSTON RETAIL PRICE PER SF IN PAST YEAR

PRICE PER SF SUMMARY OF SALES IN PAST YEAR

Geography Transactions Low Bottom 25% Median Average Top 25% High United States 42,213 $0.03 $41 $149 $174 $694 $18,613 Houston 238 $20 $75 $211 $200 $740 $2,427 Inner Loop 18 $66 $98 $305 $291 $1,070 $1,953 Inner Loop East End 3 $67 N/A $283 $160 N/A $590 Selected Sale Comps 1 $283 N/A $283 $283 N/A $283

5/13/2019 Copyrighted report licensed to CoStar Group - 986887. Page 69 Cap Rates 828 Lathrop St

CAP RATE TRENDS

UNITED STATES RETAIL CAP RATES IN PAST YEAR HOUSTON RETAIL CAP RATES IN PAST YEAR

CAP RATE SUMMARY OF SALES IN PAST YEAR

Geography Transactions Low Bottom 25% Median Average Top 25% High United States 10,955 0.9% 5.0% 6.9% 7.1% 9.6% 25.0% Houston 208 4.0% 5.4% 6.8% 6.8% 8.5% 15.0% Inner Loop 16 4.2% 5.0% 6.4% 6.3% 7.5% 8.0% Inner Loop East End 5 4.2% 5.2% 6.5% 6.4% 7.5% 8.0% Selected Sale Comps 1 6.2% N/A 6.2% 6.2% N/A 6.2%

5/13/2019 Copyrighted report licensed to CoStar Group - 986887. Page 70 Buyers 828 Lathrop St

TOP HOUSTON RETAIL BUYERS PAST TWO YEARS

Properties Bought Properties Sold

Company Name Bldgs SF Volume Bldgs SF Volume LaSalle Investment Management Inc. 3 253,237 $84,000,000 0 0 - American Realty Advisors 3 125,500 $74,749,999 0 0 - Prudential Financial, Inc. 11 108,410 $67,926,682 0 0 - TIAA-CREF Investment Management, LLC 13 1,369,516 $64,571,550 0 0 - Dunhill Partners, Inc. 9 344,870 $62,558,298 0 0 - Whitestone REIT 1 52,369 $33,086,880 1 105,766 $10,000,000 Westwood Financial 4 101,791 $31,200,000 0 0 - Store Capital Corporation 8 122,649 $25,266,141 5 7,099 $3,256,728 JRW Investments 8 102,916 $23,754,806 0 0 - Silvestri Investments, Inc 6 253,416 $23,660,001 0 0 - Essex Realty Investments, LLC 1 177,514 $23,550,136 0 0 - Crow Holdings 14 191,653 $23,000,000 0 0 - Phillips Edison & Company 2 195,027 $21,359,000 0 0 - Williamsburg Enterprises 14 582,666 $20,700,000 0 0 - Four Corners Property Trust, Inc. 7 52,878 $18,872,625 0 0 - Indus Valley Software 4 236,082 $17,850,000 0 0 - Spectrum Properties 1 50,967 $17,250,000 0 0 - Sandor Development Company 2 25,170 $16,888,676 0 0 - Montana West 2 88,234 $15,800,000 0 0 - 2 ML Real Estate Interest 2 141,737 $15,500,000 0 0 - NAI Global 5 101,696 $15,062,500 0 0 - CIM Group LP 1 108,632 $14,715,172 0 0 - Plaza Fiesta Real Estate Investment Comp… 5 174,612 $14,200,001 0 0 - Agree Realty Corporation 5 57,966 $12,501,762 0 0 - Todd A Carlson 2 65,935 $12,500,000 0 0 -

Purchased at least one asset in Inner Loop East End Ret submarket

TYPES OF RETAIL HOUSTON BUYERS PAST TWO YEARS

Buying Volume Average Purchase

Company Type Bldgs SF Millions Price/SF Avg Price

Private 338 5,972,960 $904.3 $151 $2,675,309

Institutional 42 1,933,249 $313.9 $162 $7,473,391

REIT/Public 47 588,997 $94.2 $159 $2,004,305

User 54 616,229 $73.3 $118 $1,357,240

Private Equity 21 215,837 $24.7 $114 $1,175,714

$0 $230.0 $460.0 $690.0 $920.0

5/13/2019 Copyrighted report licensed to CoStar Group - 986887. Page 71 Sellers 828 Lathrop St

TOP HOUSTON RETAIL SELLERS PAST TWO YEARS

Properties Sold Properties Bought

Company Name Bldgs SF Volume Bldgs SF Volume The Blackstone Group L.P. 4 350,998 $105,359,000 0 0 - SITE Centers 3 253,237 $84,000,000 0 0 - Fidelis Realty Partners 5 219,221 $79,149,999 0 0 - BayNorth Capital, LLC 3 125,500 $74,749,999 0 0 - Stream Realty Partners, LP 11 438,606 $74,058,298 0 0 - Amstar 10 98,730 $67,926,682 0 0 - Vista Management Company 12 120,995 $67,926,682 0 0 - Lovett Commercial 13 221,356 $64,571,550 0 0 - Thackeray Partners 5 163,534 $43,158,298 0 0 - Bailard 1 52,369 $33,086,880 0 0 - Wulfe & Co. 1 52,369 $33,086,880 0 0 - EDENS 4 101,791 $31,200,000 0 0 - Brixmor Property Group Inc. 6 391,779 $27,850,000 0 0 - Clinard Properties 5 60,424 $24,778,690 0 0 - Midway Companies 1 177,514 $23,550,136 0 0 - InvenTrust Properties 16 726,200 $23,000,000 0 0 - Bass Pro Shops Corp. 1 73,605 $21,328,641 0 0 - CVS Health 3 33,810 $18,898,676 0 0 - Brinker International 7 39,440 $18,872,625 0 0 - Baker Katz, LLC 3 64,772 $17,420,000 0 0 - First Hartford Corporation 2 29,298 $16,420,000 0 0 - Unilev Capital Corporation 4 139,643 $16,300,001 0 0 - Revesco Properties 2 88,234 $15,800,000 0 0 - Baker Katz 1 46,659 $15,500,000 0 0 - At Home 1 108,632 $14,715,172 0 0 -

Sold at least one asset in Inner Loop East End Ret submarket

TYPES OF RETAIL HOUSTON SELLERS PAST TWO YEARS

Selling Volume Average Sale

Company Type Bldgs SF Billions Price/SF Avg Price

Private 396 5,369,605 $1.1 $199 $2,709,835

Institutional 47 991,201 $0.2 $249 $5,265,592

REIT/Public 51 3,335,413 $0.2 $52 $3,407,334

Private Equity 15 604,269 $0.2 $260 $10,498,101

User 49 1,499,001 $0.1 $93 $2,866,655

$0 $0.3 $0.6 $0.9 $1.2

5/13/2019 Copyrighted report licensed to CoStar Group - 986887. Page 72 Demographics 828 Lathrop St 8,400 SF Retail Freestanding Houston, TX 77020 - Inner Loop East End Submarket

PREPARED BY

Anthony Rigg Research Associate II Income & Spending Demographics 828 Lathrop St

1 Mile 3 Miles 5 Miles 10 Min. Drive

2019 Households by HH Income 5,498 29,086 102,175 81,148 <$25,000 2,040 37.10% 12,689 43.63% 35,801 35.04% 26,020 32.06% $25,000 - $50,000 1,882 34.23% 8,428 28.98% 25,539 25.00% 17,827 21.97% $50,000 - $75,000 761 13.84% 3,781 13.00% 14,640 14.33% 11,946 14.72% $75,000 - $100,000 349 6.35% 2,037 7.00% 9,109 8.92% 7,643 9.42% $100,000 - $125,000 265 4.82% 1,067 3.67% 5,332 5.22% 4,952 6.10% $125,000 - $150,000 98 1.78% 408 1.40% 2,932 2.87% 3,596 4.43% $150,000 - $200,000 72 1.31% 443 1.52% 3,744 3.66% 3,769 4.64% $200,000+ 31 0.56% 233 0.80% 5,078 4.97% 5,395 6.65% 2019 Avg Household Income $43,468 $41,674 $62,292 $71,312

2019 Med Household Income $31,729 $29,005 $38,980 $44,766

1 Mile 3 Miles 5 Miles 10 Min. Drive

Total Specified Consumer Spending $111.7M $522.6M $2.1B $1.7B

Total Apparel $8.8M 7.88% $41.5M 7.95% $153.5M 7.21% $120.5M 6.96% Women's Apparel $3.0M 2.73% $14.6M 2.80% $55.4M 2.61% $44.4M 2.57% Men's Apparel $1.7M 1.54% $8.3M 1.58% $32.6M 1.53% $26.2M 1.51% Girl's Apparel $863.6K 0.77% $3.9M 0.74% $13.4M 0.63% $10.1M 0.58% Boy's Apparel $579.6K 0.52% $2.6M 0.50% $9.1M 0.43% $6.9M 0.40% Infant Apparel $502.6K 0.45% $2.3M 0.45% $8.3M 0.39% $6.4M 0.37% Footwear $2.1M 1.87% $9.8M 1.87% $34.5M 1.62% $26.5M 1.53%

Total Entertainment & Hobbies $7.8M 6.97% $38.3M 7.33% $157.0M 7.38% $252.3M 14.56% Entertainment $1.5M 1.35% $6.8M 1.30% $27.1M 1.27% $21.4M 1.24% Audio & Visual Equipment/Service $4.2M 3.77% $21.8M 4.17% $85.7M 4.03% $70.6M 4.08% Reading Materials $109.0K 0.10% $645.4K 0.12% $4.3M 0.20% $4.3M 0.25% Pets, Toys, & Hobbies $1.9M 1.74% $9.1M 1.73% $40.0M 1.88% $34.2M 1.97% Personal Items $6.8M 6.12% $35.0M 6.69% $145.5M 6.84% $121.7M 7.03%

Total Food and Alcohol $34.7M 31.07% $163.0M 31.19% $630.9M 29.66% $507.8M 29.31% Food At Home $21.6M 19.32% $100.9M 19.32% $363.6M 17.09% $282.4M 16.30% Food Away From Home $11.3M 10.13% $53.6M 10.25% $228.7M 10.75% $192.1M 11.09% Alcoholic Beverages $1.8M 1.63% $8.5M 1.62% $38.6M 1.82% $33.3M 1.92%

Total Household $14.0M 12.52% $64.3M 12.31% $285.3M 13.41% $238.6M 13.77% House Maintenance & Repair $3.1M 2.77% $12.6M 2.41% $48.1M 2.26% $35.8M 2.06% Household Equip & Furnishings $5.7M 5.10% $27.5M 5.27% $121.2M 5.70% $102.0M 5.89% Household Operations $4.4M 3.90% $20.2M 3.86% $89.8M 4.22% $76.0M 4.39% Housing Costs $835.3K 0.75% $4.1M 0.78% $26.3M 1.23% $24.8M 1.43%

5/13/2019 Copyrighted report licensed to CoStar Group - 986887. Page 74 Income & Spending Demographics 828 Lathrop St

1 Mile 3 Miles 5 Miles 10 Min. Drive

Total Transportation/Maint. $28.3M 25.30% $128.5M 24.59% $524.3M 24.65% $419.4M 24.21% Vehicle Purchases $11.9M 10.62% $50.0M 9.57% $208.2M 9.79% $162.3M 9.37% Gasoline $11.5M 10.30% $53.8M 10.30% $201.9M 9.49% $158.5M 9.15% Vehicle Expenses $544.9K 0.49% $3.2M 0.61% $15.1M 0.71% $13.1M 0.75% Transportation $1.0M 0.93% $5.9M 1.12% $34.0M 1.60% $31.8M 1.84% Automotive Repair & Maintenance $3.3M 2.96% $15.6M 2.99% $65.0M 3.06% $53.7M 3.10%

Total Health Care $5.9M 5.26% $26.5M 5.08% $103.5M 4.87% $83.2M 4.80% Medical Services $3.1M 2.81% $13.6M 2.60% $55.6M 2.61% $45.5M 2.63% Prescription Drugs $2.2M 1.96% $10.2M 1.96% $37.3M 1.75% $29.0M 1.67% Medical Supplies $549.7K 0.49% $2.7M 0.51% $10.7M 0.50% $8.7M 0.50%

Total Education/Day Care $5.4M 4.87% $25.4M 4.86% $127.1M 5.98% $110.7M 6.39% Education $4.0M 3.59% $18.8M 3.60% $88.6M 4.17% $75.3M 4.34% Fees & Admissions $1.4M 1.29% $6.6M 1.26% $38.5M 1.81% $35.5M 2.05%

5/13/2019 Copyrighted report licensed to CoStar Group - 986887. Page 75 Appendix 828 Lathrop St 8,400 SF Retail Freestanding Houston, TX 77020 - Inner Loop East End Submarket

PREPARED BY

Anthony Rigg Research Associate II Commercial Historical Leasing

COMMERCIAL HISTORICAL LEASING An error has occurred while generating this section of the report. You may try it again. If the error persists, please report the error to our customer support at Costar.com

5/13/2019 Copyrighted report licensed to CoStar Group - 986887. Page 77 Commercial Historical Construction Data

COMMERCIAL HISTORICAL CONSTRUCTION DATA An error has occurred while generating this section of the report. You may try it again. If the error persists, please report the error to our customer support at Costar.com

5/13/2019 Copyrighted report licensed to CoStar Group - 986887. Page 78