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Home , Buffalo Speedway, Four Leaf Towers, Four Oaks Place, Greenway Plaza, Houston Theater District, Post Oak Central

GALLERIA / UPTOWN DISTRICT ·14th largest business district in the U.S. ·28 million SF of office space ·1.35 million SF of office space proposed ·Over 82,000 employees 610 ·Over 2,000 companies

SKYHOUSE RIVER OAKS Dining Le Colonial Toulouse Cafe & Bar THE MILLENNIUM Hopdoddy Burger Bar Amorino Gelato HIGH STREET Steak 48 Flow Juice Bar THE JAMES HIGHLAND VILLAGE Taverna Pizzeria & Risotteria The Tuck Room Retail Apple Anthropologie Retail & Entertainment Crate & Barrel Lush Cosmetics Cartier Roberto Cavalli Williams-Sonoma J.Crew Dolce & Gabana Saint Bernard Tommy Bahama Lululemon Dior Roberta Roller Rabbit Kiehl’s Since 1851 Francesca’s Collection Brunello Cucinello Stella McCartney Madewell Lucchese Bonobos Van Cleef & Arpels Vineyard Vines Z Gallerie Hermes Harry Winston St. Nicola L’Occitane Les Copains WESTHEIMER RD

THE GAEL

ESSEX HOUSE 2929 WESLAYAN

OLYMPIA AT WILLOWICK PARK

ARIA AT WILLOWICK PARK W ALABAMA ST 2.05 ACRES

WESLAYAN ST

±2.05 acres At WESLAYAN ST & W ALABAMA ST IN RIVER OAKS 81,505 square-foot office building with income in place 3000 Weslayan St, , TX | Price TBD by Market ±2.05 ACRES AT 3000 WESLAYAN ST

EXCLUSIVE REPRESENTATION OFFER REQUIREMENTS ARA Newmark has been exclusively retained to Offers should be presented in the form ofa CONTENTS represent the Seller in the disposition of ±2.05 non-binding Letter of Intent, and should include: acres at 3000 Weslayan St in Houston, · Pricing (Property). All inquiries about the Property Property Information 3 should be directed to ARA Newmark. ·Due Diligence and Closing Timeframe ·Earnest Money Deposit ·Description of Debt/Equity Structure Survey & Tax Rates 4 DUE DILIGENCE INFORMATION · Qualifications to Close ·Development Plans To access the due diligence information please visit the Property website at: ​ Purchase terms shall require cash to be paid at Building Details 5 arausa.listinglab.com/3000Weslayan closing. Offers should be delivered to the atten- tion of Tim Dosch, David Marshall, Tom Dosch, or Employment Highlights 9 Matt Rotan via fax or email.

Retail & Entertainment Highlights 13 CONTACTS

Tim Dosch David Marshall Houston Market Overview 16 Principal Principal [email protected] [email protected] O 713-955-3127 O 713-955-3126 Brokerage Information 18 M 713-459-8123 M 713-206-1574

Tom Dosch Matthew Rotan Principal Vice Chairman [email protected] [email protected] O 713-955-3125 O 713.425.5406 M 713-557-4455

ARA, A Newmark Company www.aranewmark.com 1700 Post Oak Blvd 2 BLVD Place, Suite 400 Houston, TX 77056

±2.05 ACRES AT 3000 WESLAYAN 2 PROPERTY DETAILS

INCOME PRODUCING PROPERTY TRACT DETAIL ·· Strong NOI with opportunity for growth 3000 Weslayan St, Houston, Tx 77027 LOCATION ·· Rent roll available Hard corner of Weslayan St and W Alabama St

LATITUDE, LONGITUDE 29.737681, -95.442127 PROPERTY SURROUNDED BY HIGH END RETAIL AND DINING ·· Less than a mile from Central Market, Highland Village, the River Oaks District, ±2.05 Acres and , Houston’s highest concentration of high-end retail and TOTAL ACRES 81,505 SF Office Space dining

PARCEL ID 0410170020080 ·· Less than two miles from / Uptown District, which features more than five million square feet of retail space and approximately 1,000 stores 600 Ft on Weslayan Street FRONTAGE (APPROX.) 295 Ft on W Alabama Street EXCELLENT LOCATION NEAR HOUSTON’S LARGEST BUSINESS Weslayan Street ACCESS CENTERS W Alabama Street ·· Within five miles of Houston’s strongest employment markets: Greenway Plaza (0.4 miles), Galleria/ Uptown District (0.8 miles), (3 UTILITIES City of Houston miles), and Central Business District (4.5 miles) ·· Near the district, renowned for its dining and entertainment: FLOODPLAIN Not in the floodplain the district boasts two theater venues, high-end retail shops, and some of Houston’s finest restaurants, including Fleming’s, Grace’s, Pondicheri, and SCHOOL DISTRICT Houston ISD Giacomo’s Cibo e Vino

2017 budgeted NOI of $825,000 with strong OFFICE LEASE opportunity for growth Rent roll available

DEMOGRAPHICS 0-1 mi 0-3 mi 0-5 mi

2016 Est. Population 20,823 188,724 486,608

2016 Est. Average Household Income $140,449 $141,942 $115,121

2016 Est. Average All Owner-Occupied $629,588 $623,681 $511,355 Housing Values

±2.05 ACRES AT 3000 WESLAYAN 3 PROPERTY SURVEY & TAX RATES

294.31’

2016 TAX RATES 2016 Rate

Houston ISD 1.206700 302.09 300.92’ Harris County 0.416560

Harris Co Flood Cntrl 0.028290

Port of Houston Authy 0.013340

Harris Co Hosp Dist 0.171790

Harris Co Educ Dept 0.005200

Hou Community College 0.100263

City of Houston 0.586420 297.30’ Total 2.528563

±2.05 ACRES AT 3000 WESLAYAN 4 BUILDING DETAILS

3000 Weslayan EXTERIOR PLAZA ·· 81,505 square feet of office space ·· Three-story, Class B office building ·· 241 parking spaces Building Income ·· 2017 budgeted NOI of approximately $825,000 with strong opportunity for rent growth ·· Rent roll available For rent roll and other confidential information, please sign the Confidentiality Agreement INTERIOR CORRIDOR

MAIN LOBBY

±2.05 ACRES AT 3000 WESLAYAN 5 BUILDING DETAILS

FLOOR PLANS Floor 01

±2.05 ACRES AT 3000 WESLAYAN 6 BUILDING DETAILS

FLOOR PLANS

Floor 02 Floor 03

±2.05 ACRES AT 3000 WESLAYAN 7 AREA HIGHLIGHTS

UPPER KIRBY TEXAS MEDICAL CENTER - Mix of a uent residential neighborhood and - Situated on 1,345 acres, the Texas Medical Center (TMC) is the eighth-largest business urban mixed-use developments district in the country - Live-work-play environment with high end retail, - 106,000 employees - More people than Exxon, Apple, or Google posh boutiques, and many of Houston’s nest - 21 renowned hospitals and 8 academic and research institutions restaurants, including Pondicheri, Fleming’s, Grace’s, Giacomo’s Cibe e Vino, Chuy’s,

GREENWAY PLAZA - Ten-building complex totaling over 4.25 million square - Comprehensive research university consistently ranked KIRBY DR feet of Class A office space and boasts over 25,000 among top 20 universities in the U.S. overall employees - One of only three Tier One universities in Texas - Offers over 300 shops in the immediate 16-block area ·Master-planned mixed-use 52-acre site with premier - 665 full-time and 197 part-time instructional faculty - Consists of boutiques and eclectic shops as well as frontage along US 59 - 98% of full-time instructional faculty have a doctorate high-end clothing stores such as Chico’s, Eddie Bauer, and or terminal degree in their field Pier 1 Imports · Dining options include a variety of food from all over the world including Japanese, Chinese, French, Italian, Mexican, Spanish, Mediterranean, and Vietnamese LAMAR HIGH SCHOOL

BUFFALO SPEEDWAY

TIMMONS LN

THE BRIAR CLUB

WESLAYAN ST

W ALABAMA ST 2.05 ACRES

THE BRIAR CLUB GREENWAY PLAZA UPPER KIRBY TEXAS MEDICAL CENTER RICE UNIVERSITY RICE VILLAGE

±2.05 ACRES AT 3000 WESLAYAN 8 EMPLOYMENT HIGHLIGHTS

The Galleria/Uptown District (0.8 miles) ·· Over 82,000 employees and 28 million square feet of office space ·· Home to over 2,000 companies including Apache Corporation, BHP Billiton, Cameron International Corporation, Hines REIT, and Weatherford International, Ltd. ·· 1.3 million square feet is under construction ·· $1 billion in renovations are underway ·· One of the nation’s largest business districts

Top Uptown/Galleria Employers 2016

Company Employees Revenue FY 2015

Bechtel Corporation 1,200 $37.2 billion

Spectra Energy Corporation 1,070 $5.23 billion

Apache Corporation 971 $6.37 million POST OAK BOULEVARD Weatherford International 900 $9.43 billion

Stage Stores Inc. 850 $1.6 billion

Sodexo 800 $22.21 billion

Landry’s Inc. 800 NA

BBVA Compass 708 $3.41 billion

Stewart Title 567 $2.03 billion

Alliant Group 542 NA THE GALLERIA

bizjournals.com

±2.05 ACRES AT 3000 WESLAYAN 9 EMPLOYMENT HIGHLIGHTS: GALLERIA/ UPTOWN DISTRICT (0.8 MILES)

18 6 9 10 19 4 8 3 12 15 1 5 11 14 20 7 17 2

GALLERIA/ UPTOWN DISTRICT 16 13

RIVER OAKS DISTRICT

HIGHLAND VILLAGE

WESTHEIMER RD

2.05 ACRES

W ALABAMA ST

WESLAYAN ST Aerial Legend 1 BBVA Compass Plaza 6 11 1800 West Loop South 16 The St. Regis Houston 2 Royal Sonesta Hotel 7 SkyHouse River Oaks 12 Amegy Bank 17 Landry’s Inc 3 8 Cosmopolitan Highrise 13 Target 18 1 Riverway 4 Hanover Post Oak 9 14 Five Post Oak Park 19 Omni Houston 5 Boulevard Place 10 BHP Billiton Petroleum 15 Burns & McDonnel 20 Park Square Highrise

±2.05 ACRES AT 3000 WESLAYAN 10 EMPLOYMENT HIGHLIGHTS

Texas Children’s Hospital Memorial Hermann Greenway Plaza (0.4 miles) ·· $506 million expansion ·· $650 million renovation and expansion ·· Ten-building complex totaling over 4.25 ·· Adding 19 floors to existing tower for new heart ·· Building new patient care building and upgrading million square feet of Class A office space center, expanded critical care, and diagnostic and infrastructure and boasts over 25,000 employees therapeutic services ·· Adding 1.3 million square feet in a new space and ·· Major employers include Oxy USA, ·· Expected completion: 2018 increasing their size by 50% , Koch Industries, Invesco, Baylor St. Luke’s McNair Campus ·· Expected completion: 2018 Direct Energy, and Community Bank of ·· New 1.2-million-square-foot facility Texas Rice University (3.4 miles) ·· In various stages of completion, renovation and ·· Master-planned mixed-use 52-acre site ·· Comprehensive research university consistently construction with premier frontage along US 59 ranked among top 20 universities in the U.S. overall ·· Second patient tower and medical office building ·· Sold to Cousins for $1.3 billion ·· One of only three Tier One universities in Texas planned ·· Recently completed a multimillion-dollar ·· 665 full-time and 197 part-time instructional faculty M.D. Anderson Alkek Hospital renovation to 3 Greenway plaza ·· 98% of full-time instructional faculty have a ·· $293 million expansion will add nine floors doctorate or terminal degree in their field (478,000 square feet) to existing 755,764-square- foot hospital ·· 3,879 undergraduate and 2,744 graduate degree- Texas Medical Center (3 miles) seeking students ·· Largest medical center in the world currently ·· Four floors were completed in 2013 and three were undergoing a $7 billion expansion completed in 2014; remaining two floors will be built out in 2016 ·· Eighth largest business district in the country University of Texas M.D. Anderson ·· One of the most stable, high income areas in the Cancer Center TEXAS MEDICAL CENTER US ·· $198 million expansion ·· Encompasses 1,345 acres and 45.8 million square ·· Will add 184,000 square feet feet to the existing building ·· Houston Methodist currently undergoing $1.2 Houston Methodist billion expansion and Texas Children’s spending ·· $540 million expansion $506 million for expansion ·· Building a 390-bed inpa- ·· The Texas Medical Center hosts 106,000 tient tower at the main employees, 50,000 students, and 21 hospitals campus ·· Several projects under construction and recently ·· Expected completion: 2017 completed:

±2.05 ACRES AT 3000 WESLAYAN 11 EMPLOYMENT HIGHLIGHTS: CENTRAL BUSINESS DISTRICT

Central Business District (4.5 miles) · 150,195 employees · Hosts 12 of Houston’s 26 Fortune 500 companies 45 45 · Over 49 million-square-feet in total office space10 and over 30 million-square-feet in Class A office space · Major employers (number of employees) include Chevron Employment Hosts 12 of Houston’s 26 Fortune 500 companies (7,000), Shell Oil Company (6,500), Chase Bank (4,695), Major Employers (Number of Employees) Chevron (7,000) KBR (3,175), El Paso Corporation (2,200), CenterPoint Shell Oil Company (6,500 Chase Bank (4,695) Energy (2,040), Hess Corporation (1,870), United Airlines KBR (3,175) ExxonMobil Corporation (3,000) El Paso Corporation (2,200) (1,840), and Wells Fargo (1,695) CenterPoint Energy (2,040) OFFICE MARKET & EMPLOYMENT Hess Corporation (1,870 United Airlines (1,840) · Home to () and Toyota Wells Fargo (1,695) Center () Entertainment Minute Maid Park (Houston Astros) · Hosts the 1.2 million-square-foot George R. Brown (Houston Rockets) George R. Brown Convention Center Convention Center Park Employment Downtown ··CoreTwo new office towers coming soon to downtown being developed by Hines (41 stories) and Chevron (50 stories, 1.7 million square feet, and 1,752 additional employees) WORKFORCE BY AGE WORKFORCE BY INDUSTRY Workforce by Industry

61.1% 22.6% Professional & Business Services 31.4% Public Administration 17.7%

Mining, Quarrying, Oil & Gas 10%

Trade, Transportation & Utilities 7%

W ALABAMA ST Financial Services 6.7%

Utilities 6.1%

Educational & Health Services 5.5% 2.05 ACRES WESLAYAN ST 5.4% 16.3% Construction Leisure & Hospitality 3.8%

Manufacturing 3.2% Age 29 or younger Other Services (excl. Public Admin.) 1.9% Age 30 to 54 Information 1.4% Age 55 or older downtowndistrict.org

WORKFORCE BY EARNINGS WORKFORCE BY EDUCATIONAL ATTAINMENT ±2.05 ACRES AT 3000 WESLAYAN 12

8.3% Bachelor’s degree or advanced degree 36%

Some college or Associate degree 32% 18.8% High school or equivalent, no college 21% Less than high school 11%

72.9%

$1,250 per month or less

$1,251 to $3,333 per month Sources: LEHD, 2014; CoStar, 2016; JLL, 2016; HDMD/CHI, 2016. More than $3,333 per month

downtowndistrict.org | 2016 16 RETAIL AND ENTERTAINMENT HIGHLIGHTS

Dining Chipotle Mexican Grill LOCAL RETAIL AND ENTERTAINMENT Pepper Tree Veggie Cuisine Boba Cha Greenway Commons (0.3 miles) PEARL GREENWAY Salad Extravaganza LA Crawfish ·· 257,625 square feet of retail space Skewers Mediterranean Cafe GREENWAY COMMONS Which Wich ·· Costco Wholesales, LA Fitness, Bank of Dining Collina’s America, Buffalo Wild Wings, Bullritos, Iberia Salata UrbanChef Thai Cottage Bullritos Buffalo Wild Wings Bank, Smoothie King, Urbanchef, Panda Smoothie King Tutti Frutti RICHMOND AVE Express, and Salata Retail Costco Wholesale Bank of America LA Fitness Iberia Bank Richmond Ave and Weslayan St (0.4 miles) ·· Edwards Greenway Grand Palace Stadium 24 3333 WESLAYAN & RPX is a multi-story theater featuring 24 screens, an arcade, and two sets of escalators ·· Chipotle Mexican Grill, Which Wich, Collina’s, Kolache Shoppe, LA Crawfish, and Thai Cottage TIMMONS ST The Briar Club (0.5 miles) ·· Situated on 5.5 acres on Westheimer Rd and 2929 WESLAYAN Timmons St ·· Six outdoor, USTA-specified hard tennis courts, an 18,000-square-foot Fitness Center, newly expanded 4,000-square-foot Wellness Center, a family resort pool, and a six-lane lap pool ·· Offers three fine dining restaurants and two OLYMPIA AT bars WILLOWICK PARK

WESLAYAN ST 2.05 ACRES THE BRIAR CLUB W ALABAMA ST

ARIA AT WILLOWICK PARK

±2.05 ACRES AT 3000 WESLAYAN 13 AREA RETAIL AND ENTERTAINMENT HIGHLIGHTS

Upper Kirby (0.9 miles) ·· Ideally located minutes from Greenway Plaza, Carrabbas, Turquoise Grill, BB’s Cafe, Goode Co. Uptown District, Downtown, and the Texas Seafood and Goode Co. Taqueria, The Queen Vic Medical Center Pub & Kitchen, and Kata Robata ·· Mix of affluent residential neighborhood and ·· Upper Kirby The Music Box, a theater venue urban mixed-use developments ·· Whole Foods Market features an in-store bar serv- ·· Live-work-play environment with high end retail, ing draft beers posh boutiques, and many of Houston’s finest ·· Bed Bath & Beyond and Ulta are also just a few restaurants, including Pondicheri, Fleming’s, blocks from the Property Grace’s, Giacomo’s Cibe e Vino, Chuy’s,

Greenway Plaza (0.4 miles) The Galleria/Uptown District (0.8 miles) ·· Dining includes Colina’s, Oishii’s, Bullritos, ·· More than five million square feet of retail space Buffalo Wild Wings, and Tony’s ·· Approximately 1,000 stores Highland Village (0.6 miles) ·· Boasts Houston’s most prestigious shopping

THE GALLERIA/ UPTOWN PARK ·· Retail includes Crate & Barrel, Williams-Sonoma, including stores such as , Cartier, Pottery Barn, Anthropologie, Restoration Hermes of Paris, Saks Fifth Avenue, , 610 Hardware, and J.Crew Ethan Allen, and Houston’s only ·· Home to several distinctive dining establishments ·· A major feature of Uptown is The Galleria, the AFTON OAKS RIVER OAKS WESTHEIMER RD Up to $3.4M+ DISTRICT including Smith & Wollensky, UP Restaurant, RA largest in Texas Sushi, and Escalante’s Rice Village (2.0 miles) River Oaks District (0.7 mile) ·· Offers over 300 shops in the immediate 16-block ·· 14-acre outdoor luxury boutique shopping center area with 252,000 square feet of retail space ·· Consists of boutiques and eclectic shops as well ·· Offers world-class high-fashion brands including as high-end clothing stores such as Chico’s, Eddie

OLYMPIA AT Cartier, Dolce & Gabana, Dior, Bonobos, Harry Bauer, and Pier 1 Imports ARIA AT WILLOWICK PARK WILLOWICK PARK Winston, Hermes, Tom Ford, Saint Bernard, Stella ·· Dining options include a variety of food from McCartney, and Brunello Cucinello all over the world including Japanese, Chinese, ·· Dining includes Le Colonial, Hopdoddy Burger Bar, French, Italian, Mexican, Spanish, Mediterranean, W ALABAMA ST and Vietnamese 2.05 ACRES Steak 48, Taverna Pizzeria & Risotteria, Toulouse Cafe & Bar, and Amorino Gelato

WESLAYAN ST

±2.05 ACRES AT 3000 WESLAYAN 14 RETAIL & ENTERTAINMENT HIGHLIGHTS

Dining Retail & Entertainment Aka Sushi House Eddie V's Prime AD Players Theater Avalon Diner Seafood Isle Pedispa Shanghai River Petite Sweets Tootsies The Path of Tea Pondicheri Becks Prime Del Frisco's Grill Dining Art & Theater KIRBY DR The Queen Vic Pub & Kitchen The Music Box Theater Urban Harvest Farmers Market Dean Day Gallery Dining El Tiempo Cantina Hooks-Epstein Gallery Fleming's SaltAir Seafood Kitchen Pappadeaux Seafood Kitchen Catherine Couturier Gallery Ruggles Green Petite Sweets Little Pappasito's Cantina Nicole Longnecker Gallery LAMAR HIGH SCHOOL Grace's Beckrew Wine House Khyber Laura Rathe Fine Art Carrabba's Mia's Sushi King McMurtrey Gallery Luna Pizzeria D.M. Allison Art

BUFFALO SPEEDWAY

GREENWAY PLAZA

W ALABAMA ST RICHMOND AVE

MARQ 31 THE BRIAR CLUB WESTHEIMER RD TIMMONS ST

2929 WESLAYAN 3333 WESLAYAN

WESLAYAN ST 2.05 ACRES

OLYMPIA AT WILLOWICK PARK ARIA AT WILLOWICK PARK

±2.05 ACRES AT 3000 WESLAYAN 15 HOUSTON MARKET OVERVIEW

CONTINUED GROWTH drivers, and it is the only one currently contracting. Houston saw continued growth in 2015 in spite of the Other key drivers include the U.S. economy, the pet- INTERNATIONAL CITY negative perception driven by the decline in energy rochemical industry, and the medical industry, all of Houston’s business cost is 2.0% below the U.S. prices. This growth was largely attributed to strengths which are strong and growing. average, drawing foreign trade, investment, in other areas of Houston’s diverse economy. Houston and business to the region. Houston hosts: created 15,200 jobs in 2015. This employment increase MARKET DRIVERS ·· More than 90 Foreign Consulates distinctly separates 2015 in Houston from previous A key difference between 2015 and previous energy ·· 31 active Foreign Chamber of Commerce periods that saw energy downturns, namely the 1980s, downturns is that the U.S. economy is still growing. In and Foreign Trade Associations early-1990s, early-2000s, and the Great Recession. In all four previously mentioned downturns the U.S. saw ·· 21 foreign banks, representing 9 nations all of these periods Houston sustained substantial job a decline in employment. However, in 2015 total non- ·· More than 752 foreign-owned firms losses. Not only did Houston gain jobs in 2015, but it is farm employment in the U.S. grew 1.9% year-over-year, ·· More than 437 companies with branches in projected to continue to do so in 2016. translating to 2,650,000 jobs. Projections for U.S. job 144 other nations growth in 2016 range from 1.70% to 2.25%, which is Houston ranks No. 3 out of 106 U.S. metros for the num- good news for Houston. ber of private-sector jobs added between September Remaining gains were in other services, transportation, 2006 and September 2016. The When the U.S. does well, Houston does well. In the last warehousing, and utilities. Houston’s east side boom Partnership is projecting Houston will add 22,900 jobs 25 years, only once (2003) has Houston lost jobs while added 7,100 jobs to the heavy and civilian construction across all sectors in 2016, demonstrating confidence the U.S. gained jobs. Dr. Bill Gilmer, Chief Economist sector. from local experts. REIS and Witten Advisors proj- at the , estimates that every 1% ect even higher numbers at 38,280 and 30,700 jobs of U.S. job growth creates 33,000 jobs in Houston. Vehicle sales remain strong with 341,426 vehicles sold respectively. Another important factor to consider in regards to in the 12 months ending June 2016. Airport traffic con- Houston’s continued growth is the diverse local econ- tinues to grow: the handled To understand the growth in 2015, and the positive pro- omy. For better or worse, Houston’s perception is tied 27.0 million passengers through the first six months of jections for 2016, all the drivers of Houston’s economy to energy. However, there has been significant diversifi- 2016, up 1.3% from the 26.4 million handled over the must be considered. Energy is only one of several key cation over the last 30 years. same period in 2015. International passengers totaled 5.8 million, up 12.8% from the 5.1 million handled YTD HOUSTON’S WORKFORCE DIVERSE INDUSTRY in 2015. ·· Over 6,000 manufacturers employ more than Losses in upstream energy have been more than off- 250,000 skilled workers set by the rapid growth of Houston’s other industries. The Port of Houston – which has a statewide economic ·· More than 89,000 engineering and architec- Over 65,000 jobs were gained in food services (15,200 impact of over $264.9 billion – led Texas to be the top ture professionals in a variety of fields jobs), healthcare services (15,000 jobs), construction exporting state for the 13th consecutive year. The two (12,600 jobs), government (7,400 jobs), retail (4,300 ·· Over 165,000 high-tech (energy, medicine, industries which have perhaps contributed the largest and aerospace) professionals jobs), education (2,200 jobs), arts and entertainment impact on Houston’s growth are petrochemicals and (2,000 jobs), and finance and insurance (1,800 jobs). medicine.

±2.05 ACRES AT 3000 WESLAYAN 16 Houston Overview Houston Overview

Houston saw continued growth in 2015 in spite of the negativeHouston saw perception continued growth driven in 2015 by in the spite decline of the negative in energy perception prices. driven This by the growth decline was largely attributed to strengths in other areas ofin Houston’senergy prices. diverseThis growth economy. was largely attributed As of December to strengths in 2015, other areas Houston of Houston’s added diverse economy. As of December 2015, Houston added 23,200 jobs year‐over‐year1. This 23,200 jobs year-over-year1. This employment increaseemployment distinctly increase separates distinctly 2015separates in Houston2015 in Houston from from previous previous periods that that saw saw energy downturns, namely the 1980s, early-1990s, early-2000s,energy downturns, and namely the the Great 1980s, Recession. early‐1990s, early In ‐all2000s, of andthese the Greatperiods Recession. Houston In all sustained substantial job losses. Not only did Houstonof these gain periods jobs Houston in 2015, sustained but substantialit is projected job losses. to Not continue only did Houston to do gainso injobs 2016. in 2015, but it is projected to continue to do so in 2016. The Greater Houston Partnership is The Greater Houston Partnership is projecting Houstonprojecting to add Houston 21,900 to add jobs 21,900 this jobs year, this year, demonstrating demonstrating confidence confidence from local from experts. local experts. REIS and Witten Advisors project even higherREIS numbers and Witten at Advisors 38,280 project and even 30,700 higher jobsnumbers respectively. at 38,280 and 30,700 jobs respectively. To understand the growth in 2015, and the positive projections for 2016, all the drivers of Houston’s economy must be considered. Energy is only one of HOUSTONseveral MARKETkey drivers, OVERVIEW and it is the only one currently contracting. Other Key drivers include the U.S. economy, the petrochemical industry, and the UNPRECEDENTEDmedical industry, all EXPANSION of which are strong and growing. HEALTHCARE SERVICES The Houston area is currently experiencing an unprece- Many also overlook the fact that Houston is home to the account for one in ten jobs in the Houston region and 9.5% of the local payroll dented expansion of its petrochemical industry, primarily Texas Medical Center (TMC), which is the world’s largest on theMarket east side Drivers of town. These expansions are by no meansTo understand medical the growth complex in 2015, and the and positive employs projections over for 2016, 151,000 all the drivers people. of The hurt by declining oil prices but are in fact thriving becauseHouston’s economyhealthcare must be considered.industry Energymakes is only up one 10.1% of several of keythe drivers, Houston and it is MSA’s the NATURAL GAS A key difference between 2015 and previous energy downturnsonly one currently is that contracting. the U.S. Other economy Key drivers is stillinclude growing. the U.S. economy, In all four the petrochemical previously of them.mentioned Some of downturns the more the noteworthy U.S. saw a expansions decline in employment. includeindustry, and workforceHowever, the medical industry,in and 2015 has all total of whichgrown nonfarm are 43%strong employment andover growing. the last in the10 years;U.S. grew com - is fueling a strong construction cycle along ExxonMobil’s1.9% year-over-year, $6 billion translatingexpansion to to 2,650,000 their petrochemical jobs. Projections pare for U.S. that job to growth the energy in 2016 industry range from which 1.70% comprises to 2.25%, 10.6% which of the U.S. Gulf Coast for chemicals, LNG and agriculture complex,is good Chevron news for Phillips’ Houston. $6 Whenbillion the ethane U.S. does cracker well, facilHoustonMarket- Drivers doesthe workforce well. In the and last has 25 grownyears, only46% once in the (2003) same has period. Houston Much lost jobs while the U.S. gained jobs. Dr. Bill Gilmer, Chief Economist at the University of Houston, estimates that every 1% of ity, Celanese’s $800 million methanol production unit,A key difference like between the petrochemical 2015 and previous energy boom downturns occurring is that the on U.S. Houston’s economy is still east and lyondellbasell’sU.S. job growth creates $500 33,000 million jobs ethylene in Houston. plant expangrowing.- In allside, four previouslyinstitutions mentioned within downturns the the TMC U.S. saware a declineundergoing in employment. massive However, in 2015 total nonfarm employment in the U.S. grew 1.9% year‐over‐year, translating INTERNATIONAL TRAVEL sion. Another Combined, important all of factor the petrochemical to consider in regards expansions to Houston’s are continuedexpansion growth projects is the totaling diverse over local $6 economy. billion in capitalFor better invest or - to 2,650,000 jobs. Projections for U.S. job growth in 2016 range from 1.70% to 2.25%, which is will grow as Hobby Airport opens its estimatedworse, to Houston’s cost over perception $35 billion. is tied A study to energy. by the However, Greatergood newsthere forments. hasHouston. been This When significant unprecedented the U.S. does diversification well, Houston growth does overwell. ensures Inthe the last that 25 30 years, the years. only med - International Terminal in once (2003) has Houston lost jobs while the U.S. gained jobs. Dr. Bill Gilmer, Chief Economist at HoustonLosses Port in Bureau upstream estimates energy have that been these more projects than offset will cre by- the icalrapid hub growth will of remain Houston’s one other of the industries. major pillars Vehicle of salesHouston’s are 2015, generating 10,000 jobs ate upwardsat all-time of highs265,000 – 376,481 jobs over sales their in 2015. lifetime. Airport traffic continueseconomy to grow, for with the anforeseeable estimated 50future. million passengers moving through Houston airports a year. The Port of Houston – which has a statewide economic impact of over $264.9 billion – led Texas to be the top exporting state for the 13th consecutive year. The two industries which have perhaps contributed the RETAIL SALES largest impact on Houston’s growth are petrochemicals and medicine. in Houston grew by 30.3% from 2009-2013, fueled by population growth and rising 7.0% 120 incomes 6.0% 100 5.0% 80 4.0% 60 HOUSING 3.0% 40 Houston ranks No. 2 in the nation in hous- 2.0% 20 ing starts, behind only Dallas, the national Growth

Price homebuilding leader 1.0% 0 Job

0.0% ‐20 WTI of

% 1.0% ‐40 AUTO SALES 2.0% ‐60 experienced the best June on record in 3.0% ‐80 2015, selling 34,424 vehicles (+8.7% from 4.0% ‐100 last year) 5.0% ‐120 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 *2016 CONSTRUCTION US Job Growth Houston Job Growth Avg WTI Price permits for the City of Houston totaled $8.3 billion in the 12 months ending June 2015

±2.05 ACRES AT 3000 WESLAYAN 17 INFORMATION ABOUT BROKERAGE SERVICES & DISCLAIMER

10-10-11

Approved by the Texas Real Estate Commission for Voluntary Use Texas law requires all real estate licensees to give the following information about DISCLAIMER brokerage services to prospective buyers, tenants, sellers and landlords. Prospective purchasers are hereby advised the Owners (“Owner”) of the Property are soliciting offers through Apartment Realty Advisors (“ARA”), which may be accepted or rejected by the Owners at the Information About Brokerage Services Owners’ sole discretion.

Any solicitation of an offer for the Properties offered hereunder will be governed by this Offering, as it efore working with a real estate broker, you intermediary. The written consent must state who will may be modified or supplemented. Prospective purchasers are advised that as part of the offer process, should know that the duties of a broker pay the broker and, in conspicuous bold or underlined the Owners will be evaluating several factors including the experience and financial qualifications of depend on whom the broker represents. If print, set forth the broker’s obligations as an the purchasing entity. you are a prospective seller or landlord intermediary. The broker is required to treat each (owner)B or a prospective buyer or tenant (buyer), you party honestly and fairly and to comply with The should know that the broker who lists the property for Texas Real Estate License Act. A broker who acts as The Owners shall have no obligation to accept any offer from any prospective purchaser. The Owners sale or lease is the owner’s agent. A broker who acts an intermediary in a transaction: reserve the right to withdraw the Properties from consideration at any time prior to final execution of a as a subagent represents the owner in cooperation Purchase Agreement. (1) shall treat all parties honestly; with the listing broker. A broker who acts as a buyer’s agent represents the buyer. A broker may act as an (2) may not disclose that the owner will accept a This Offering document is furnished to prospective purchasers for the purpose of determining whether intermediary between the parties if the parties price less that the asking price unless authorized in to invest in the Properties offered hereby. The information contained herein, or any other related consent in writing. A broker can assist you in locating writing to do so by the owner; information provided by the Owners, may not be reproduced, redistributed or used in whole or in part a property, preparing a contract or lease, or obtaining financing without representing you. A broker is (3) may not disclose that the buyer will pay a without the prior written consent of the Owners. price greater than the price submitted in a written offer obligated by law to treat you honestly. unless authorized in writing to do so by the buyer; and No person has been authorized to give any information or make any representation or warranty, either IF THE BROKER REPRESENTS THE OWNER: (4) may not disclose any confidential information or expressed or implied and, if given or made, such information or representation must not be relied upon. The broker becomes the owner’s agent by entering any information that a party specifically instructs the into an agreement with the owner, usually through a broker in writing not to disclose unless authorized in While the Owners and ARA have no reason to believe that the information provided herein or in written - listing agreement, or by agreeing to act as a writing to disclose the information or required to do so by subsequent information updates delivered to potential purchasers hereunder contains any material subagent by accepting an offer of subagency from the The Texas Real Estate License Act or a court order or if inaccuracies, neither the Owners nor ARA nor any of the Owners’ or ARA’s respective subsidiaries, listing broker. A subagent may work in a different real the information materially relates to the condition of the estate office. A listing broker or subagent can assist property. affiliates, companies, or the officers, directors, employees, agents and representatives of any such the buyer but does not represent the buyer and entities, etc., make any representations or warranties, expressed or implied, as to the validity, accuracy must place the interests of the owner first. The buyer With the parties’ consent, a broker acting as an or completeness of the information provided or to be provided, and nothing herein shall be deemed to should not tell the owner’s agent anything the buyer intermediary between the parties may appoint a person constitute a representation, warranty or promise by any such parties as to the future performance of the who is licensed under The Texas Real Estate License would not want the owner to know because an Properties or any other matters set forth herein. owner’s agent must disclose to the owner any Act and associated with the broker to communicate material information known to the agent. with and carry out instructions of one party and another person who is licensed under that Act and Any obligations to prospective purchasers that the Owners may have with respect to the Properties IF THE BROKER REPRESENTS THE BUYER: associated with the broker to communicate with and are limited to those expressly set forth in a fully executed Purchase Agreement between the parties. The broker becomes the buyer’s agent by entering carry out instructions of the other party. Prospective purchaser’s sole and exclusive rights against the Owners, with respect to this prospective into an agreement to represent the buyer, usually transaction, the Properties, or information provided herein or subsequently, shall be limited to those through a written buyer representation agreement. A If you choose to have a broker represent you, remedies expressly provided in an executed Purchase Agreement, which shall not survive the closing. you should enter into a written agreement with the buyer’s agent can assist the owner but does not Further, in no event shall prospective purchasers have any claims against the Owners, ARA, or any represent the owner and must place the interests of broker that clearly establishes the broker’s obligations and your obligations. The agreement should state of their respective affiliates for any damages, liability, or causes of action relating to the Purchase the buyer first. The owner should not tell a buyer’s Agreement. agent anything the owner would not want the buyer how and by whom the broker will be paid. You have to know because a buyer’s agent must disclose to the the right to choose the type of representation, if any, buyer any material information known to the agent. you wish to receive. Your payment of a fee to a broker Prospective purchasers are not to construe the contents of this Offering or any prior or subsequent does not necessarily establish that the broker information communications from the Owners or any of their respective officers, employees or agents IF THE BROKER ACTS AS AN INTERMEDIARY: represents you. If you have any questions regarding as legal, tax or other advice. Prior to purchasing, prospective purchasers should consult with their own A broker may act as an intermediary between the the duties and responsibilities of the broker, you legal counsel and personal and tax advisors to determine the consequences of an investment in the should resolve those questions before proceeding. parties if the broker complies with The Texas Real Property and arrive at an independent evaluation of such investment. Estate License Act. The broker must obtain the written consent of each party to the transaction to act as an No commission or finder’s fee shall be payable to any party by the Owners nor any affiliate or agent thereof in connection with the sale of the Properties unless otherwise agreed to by the Owners in Real estate licensee asks that you acknowledge receipt of this information about brokerage services for the licensee’s records. writing.

Acquisition of properties such as the these offered hereunder involves a high degree of risk and are Buyer, Seller, Landlord or Tenant Date suitable only for persons and entities of substantial financial means. Texas Real Estate Brokers and Salespersons are licensed and regulated by the Texas Real Estate Commission (TREC). If you have a question or complaint regarding a real estate licensee, you should contact TREC at P.O. Box 12188, Austin, Texas 78711-2188 , 512-936-3000 (http://www.trec.texas.gov) TREC No. OP-K ±2.05 ACRES AT 3000 WESLAYAN 18 GALLERIA/ UPTOWN DISTRICT RIVER OAKS DISTRICT 610

RIVER OAKS DISTRICT

OAK ESTATES AFTON OAKS Up to $2.1M+ Up to $3.4M+

HIGHLAND VILLAGE

WESTHEIMER RD

2.05 ACRES

W ALABAMA ST

WESLAYAN ST

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