464 N. FINANCIAL TERRACE MUSTANG, OK 73064

OFFERING MEMORANDUM PROPERTY SUMMARY 4 Property Overview OFFERED Investment Highlights EXCLUSIVELY BY Offering Summary

BRENT CONWAY [email protected] FINANCIAL OVERVIEW 8 C: 405.850.2442 Financial Evaluation Rent Roll Property Rent Roll

MARKET ANALYSIS 10 OKC Market Overview Comparables

Property Rent Roll

BRAD RICE [email protected] C: 918.269.8586 PROPERTY SUMMARY PROPERTY SUMMARY INVESTMENT HIGHLIGHTS

Newmark Grubb Levy Strange Beffort is pleased to present the opportunity to acquire 464 N. Financial Terrace (“Property”), which is a 7,569-square- foot freestanding office building Leased exclusively by Citizen Energy, that includes a yard of approximately .3 acres. Citizen Energy is a leader in the 17,100 VPD $72,796 horizontal drilling industry and is posed for further growth, acquiring Roan Estimated Vehicles/Day Avg. Household Income Resources in 2019 for $1 billion in an all cash transaction . S. Mustang Road & SW 74th Street 3-mi Radius

The Property has many interior updates and upgrades throughout.

Mustang, • 464 N. Financial Terrace is located at the intersection of North Mustang Road and State Hwy 152, two of the most well-traveled streets in Mustang. 7,559 Employees 11.74% • Canadian County led the state in population growth in 2019, and has been the 28th fastest growing county in the country since 2010. Daytime Business Population Population Increase 3-mi Radius 2020-2025 • New home construction in Mustang alone nearly doubled in 2018 compared to the previous year. With several infrastructure projects set to get underway, Mustang is likely to witness further growth in the years ahead. NEARBY RETAILERS

TENANT OVERVIEW

Citizen Energy Operating, LLC a Warburg Pincus LLC affilatem agreed to acquire Roan Resources Inc., , in an all-cash transaction valued at $1 billion. The deal closed on December 6, 2019.

Citizen Energy closed its agreement to acquire all the equity of Blue Mountain Midstream, LLC a wholly owned subsidiary or Riviera Resources, Inc. for approximately $111 million.

4 | 464 N. Financial Terrace PROPERTY SUMMARY OFFERING SUMMARY

464 N. FINANCIAL TERRACE MUSTANG, OK 73064

$1,200,500 7.75% 1985

Price Cap Rate Year Built

100% NNN 7,569 SF 1.05

Percent Leased Building Size Land Area

5 | 464 N. Financial Terrace 464 N FINANCIAL TERRACE Mustang, OK

6 | 464 N Financial Terrace FINANCIAL OVERVIEW FINANCIAL OVERVIEW FINANCIAL EVALUATION

LOCATION RENT LEASE COMMENCEMENT EXPIRATION 464 N. Financial Terrace, November 1, 2018 October 31, 2025 Mustang, OK

LEASE L ANDLORD TYPE RESPONSIBILITY NNN Roof and Structure

8 | 464 N. Financial Terrace FINANCIAL OVERVIEW RENT ROLL AND TENANT OVERVIEW

RENT ROLL

Tenant SF Rent Term Base Rent Rent Lease Type

Start End Annual Monthly

Citizen Energy Operating, LLC 7,569 11.01.2018 04.30.2022 $93,111 $7,759 NNN

05.01.2022 10.31.2025 $97,729 $8,144

9 | 464 N. Financial Terrace OKC MARKET OVERVIEW Oklahoma City continues to be a leader in the region with its diverse economy, skilled workforce, and a cost of living that is 14.6% below the U.S. standard. The metro area is home to several higher education institutions, major company headquarters and is the seat of state government. Oklahoma City also has launched civic projects that have transformed the city and downtown.

STATE CAPITAL One of the main economic drivers over the past few decades has been the OF OKLAHOMA MAPS projects. The first taxpayer-funded projects included a sports arena, the Bricktown Canal, a library, and other downtown projects.

Oklahoma City’s unemployment rate started 2019 at 3.5%, and then began 624 dropping to hover around 3% for the year. The Half SQ MI Source: Flix Uncertainty in global markets and a pullback in oil and gas production have taken a toll, yet despite a gradual slowdown, OKC fared well in 2019 and positive CITY OF OKC job growth is expected in the metro in 2020. While not as dependent on oil and ARE A SIZE gas as other areas of the state, the metro still feels the drag when oil prices are low and energy companies shed jobs.

OKC is poised for another year of positive growth, but the local market will no 1.42M doubt feel the effects of global conditions, and economic uncertainty in the United States as often is seen in a presidential election year. Other concerns that could put a drag on the economy include global health issues.

OKC METRO POPULATION OKC DEVELOPMENTS

First National Center Source: Cornerstone Development • The Half | 55 Acres Flix Brewhouse is opening its theater and brewhouse AAA alongside Dolese’s 77,773 square foot headquarters on this 55 acre Moody’s development. There is potential for additional retail, office, and multifamily developments as well.

TOP CREDIT RATING • First National Center | 1 Million Square Feet Developer Gary Brooks is 10 YEARS RUNNING renovating the 1931 art deco tower into a 146-room Autograph by Marriott hotel and 193 upscale apartments. The Great Banking Hall and arcade space will house restaurants and bars, including Ruth’s Chris Steak House.

• BancFirst Tower | 512,000 Square Feet BancFirst purchased the 36-story tower for $21 million in September, 2018. Now dubbed BancFirst Tower, it will house the bank and additional tenants. A renovation of the entire tower is underway. The bank plans to consolidate its operations around the city, and SYSTEM OF GOVERNMENT BancFirst Tower City Manager Source: Bockus Payne increase its downtown employment count to 450. Elected Mayor & City Council

1311 | Building Name (if applicable), Address ECONOMIC DRIVERS

AVIATION AND AEROSPACE HEALTH CARE ENERGY INTEGRIS, SSM Health, Mercy, and Tinker Air Force Base Will Rogers World Airport Long known as an energy state, the OKC others employ 82,000 workers in the metro is home to several major oil and gas • 36 nonstop destinations to 25 cities (some seasonal) • 31,295 employees region with 36 general medicine and companies, and accounts for 3% of metro 6,944 military | 4,631 military dependents | 19,720 civilians • 85 average daily departures surgical hospitals and specialty clinics. employment and 10% of total compensation. • Annual Federal Payroll: $1.82 billion • Passengers enplaned and deplaned in 2019: 4,419,119 • Economic impact: $4.83 billion An increase of 1.79% over the previous year

Recent News PROFESSIONAL, BUSINESS, WHOLESALE AND RETAIL TRADE AND FINANCIAL SERVICES At the intersection of major interstates, OKC In November 2018, the U.S. Air Force announced Tinker would coordinate maintenance and More than 125,000 employees, or 18% is a trade center with total taxable retail sustainment of the B-21 Raider — the next generation long-range strike bomber. The first of 14 of the local workforce, provide business sales in 2018 of $23.8 billion. maintenance hangers for Boeing’s KC-46 Pegasus is near completion. When all of the hangers are and financial services nationwide. completed, it will lead to the creation of an estimated 1,300 jobs.

More than 4 million passengers passed through Will Rogers World Airport in 2018. It is undergoing an BIOSCIENCE MANUFACTURING $89.3 million expansion to bring the gate total from 17 to 21, estimated for completion in early 2021. Bioscience is booming in OKC and More than 38,000 people are employed the sector employs 51,000 statewide in manufacturing in the OKC metro. It The new east concourse will feature consolidated security screening, a lobby and an observation providing goods, services, research, accounts for about 6% of the metro’s mezzanine. and education. nonagricultural labor force.

ATHLETICS CITY FINANCES 4.125% OF OVERALL The OKC Thunder is the biggest sports story in town, but other The City of Oklahoma City pays for day-to-day operations from the CITY TAX RATE teams and events bring tens of thousands of visitors—and General Fund. The largest contributor to that fund is sales tax, followed millions of dollars in economic impact—to the local market. by use tax. Sales tax is derived from retail sales, and use tax comes from goods purchased elsewhere and shipped or brought to OKC, OKC Thunder NCAA College Women’s World Series including purchases from online retailers. • Nine trips to the NBA playoffs • Attracts 70,000 visitors annually • One trip to the NBA Finals • $15M economic impact General Fund collections for Feb. 2020, which includes collections from • Average attendance: 18,203 • $27.5M improvements underway the last half of Dec. 2019 and estimated collections for the first half of OKC Energy FC Memorial Marathon Jan. 2020, was $23 million. That number was 2.1% above projections, • USL Championship League • More than 24,000 runners annually 1¢ TEMPORARY 3/4¢ PUBLIC SAFETY 1/8¢ ZOO 21/4¢ GENERAL FUND • Team plays at Taft Stadium • $10M economic impact and a 4.3% increase over the same month last year. • Average attendance: 4,298 • 16,000 hotel room nights

OKC Dodgers SALES TAX RATE: 8.625% • AAA franchise for the L.A. Dodgers MLB team City tax rate is 4.125%, the additional 4.5% goes to state and county. • Team plays at Chickasaw Bricktown Ballpark • Average attendance: 6,471 The 1¢ Temporary Sales Tax is for MAPS and other municipal projects.

Sources: ESPN; Soccer Stadium Digest; MILB.com; OKC Convention and Visitors Bureau

1412 | Building Name (if applicable), Address PUBLIC, PRIVATE DEVELOPMENTS + MAPS 4

MAPS 4 PROJECTS

Parks Beautification $140 million will fund $30 million for beautification improvements to all of the parks in projects around the city. the city. Homelessness Youth Centers $50 million to reduce $110 million will fund four new homelessness with affordable youth centers to provide activities housing options. and education. Animal Shelter Oklahoma Contemporary Heartland Headquarters Omni Hotel Senior Wellness Centers $38 million for a city animal Arts Center 110,000 SF | July 2020 605 Rooms | Est. 2021 50,000 SF | Est. 2020 $15 million for a fifth Senior shelter to replace the current Wellness Center, and $15 million outdated facility. for scholarships for low-income Fairgrounds Coliseum A study by the OKC Planning Department found that within a 3-block impact zone around the MAPS seniors. $63 million to partially fund an streetcar route, there has been more than $1.6 billion value in public and private investment since Mental Health and Addiction arena that will replace the aging 2011 alone. Even prior to that, Devon Energy began work in 2009 on its $750 million headquarters $40 million for mental health and Jim Norick Arena. downtown. substance abuse services. Diversion Hub The OKC Chamber reports private property values within the three-block impact zone have grown Family Justice Center Operated by Palomar $17 million to work to keep low- by 115 percent since the route was proposed in 2011. Because of its location along the streetcar $38 million will pay for a family level offenders out of jail. justice center for victims of abuse route, Heartland chose Automobile Alley to build its 7-story, 110,000 square foot headquarters. Innovation District and violence. Tony Capucille, president of Heartland, cited the streetcar at the building’s front door, and the $71 million to create a hub of vibrant energy downtown as the reason for building and bringing 345 employees downtown. Transit innovation in the OU Health $87 million for upgrades, more Sciences area. buses and rapid transit lines. • Impact of public and private investments in MAPS totals more than $7 billion Freedom Center and Clara Luper Civil • Estimated private investment of $3.9 billion between 1995 and 2018 Sidewalks, Bike Lanes, Trails and Rights Center Streetlights $25 million to renovate Freedom • Property values downtown have nearly doubled, an increase of $1.88 billion $87 million dedicated to bike and Center and construct center to • Since 2009, downtown has added 2,200 residents, accounting for growth of 20.8% pedestrian roads and trails. celebrate civil rights history.

• 2,700 housing units were added downtown during that period Multipurpose Stadium $115 million for capital $37 million for a multipurpose • 9,000 jobs added downtown maintenance and improvements stadium to host outdoor sporting • John W. Rex Charter Elementary School built downtown for tenants and fans. events downtown.

1513 | Building Name (if applicable), Address INDUSTRY DIVERSITY ENROLLMENT 2018-2019 School ‘18/’19 Type Government 21.2% University of Oklahoma - Norman Trade, Transportation, Utilities 11.9% 30,617 State | Four-Year OU Health Sciences Center - OKC Education and Health Svc. 10.5% Professional and Business Svc. 9.5% Oklahoma State University 29,069 State | Four-Year Leisure and Hospitality 8.2% University of Central Oklahoma 14,704 State | Four-Year Manufacturing 7.7% Financial Activities 7.4% Oklahoma City Community College 11,469 State | Two-Year Construction 6.1% Rose State College 6,676 State | Two-Year Other Svc. 5.3% Oklahoma City University 2,708 Private | Four-Year Mining and Logging 4.4% Information 3.2% Oklahoma Christian University 2,162 Private | Four-Year Averages from 2019 | Source: US BLS Source: Oklahoma State Regents for Higher Education COST OF LIVING INDEX COMPARABLES UNEMPLOYMENT RATE 2019 ECONOMIC CYCLE

MSA MEDIAN INCOME COLI OKC 2 .8% OKLAHOMA 3.35% NATIONAL 3.67%

$80K 140% 4.5% OKC’s cost of living is 14.6% below the U.S. standard FORCAST RISKS Mid $60K 105% 4.0% Expansion LATE Recovery EXPANSION $40K 70% 3.5% Short Term

$20K 35% 3.0% In Recession At Risk Long Term

$0 0% 2.5% Source: Moody’s OKC Indianapolis Fort Worth Denver Atlanta Chicago JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC KEY INDICATORS MAJOR EMPLOYERS

2015 2016 2017 2018 Metric 2019 2020 2021 2022 The largest employers in the OKC metro are the government and military, although the area has a diverse economy and is home to the head-quarters of several major companies. 1.36 1.37 1.38 1.39 Population (M) 1.40 1.42 1.43 1.44 Market Years HQ Employer Employees Sector Ticker Cap in OKC • Hobby Lobby Stores, Inc. 5,100 Retail Private - 48 3.9 4.3 3.9 2.8 Unemployment (%) 2.5 2.4 2.9 3.1 The Boeing Company 3,000 Aerospace BA $121.6 B 36 • Devon Energy Corp. 2,500 Oil & Gas DVN $3.2 B 49 630 630 635 650 Employment (K) 661 661 661 666 • Paycom 2,500 Technology PAYC $13.8 B 22 • Midfirst Bank 2,000 Finance Private - 66 53.2 54.5 56.3 58.6 Median HH Income (K) 60.9 62.3 63.7 65.5 • Chesapeake Energy Corp. 1,800 Oil & Gas CHK $277.9 M 31 • Dell 1,800 Business Svcs. DELL $28 B 16 84.6 Cost of Living 85.4 Love's Travel Stops & Country Stores 1,800 Retail Private - 56 • Bancfirst 1,700 Finance BANF $1.2 B 54 2 2 2 2 F-500 Companies 2 2 1 1 • Hertz 1,700 Rental Svcs. HRI $1.1 B 56 Enable Midstream 1,600 Oil & Gas ENBL $2.1 B 7 1 1 1 1 Nat’l Sports 1 1 1 1 • American Fidelity 1,400 Finance Private - 60 Source: Greater OKC Chamber | Excludes Government, Military, Higher Education, and Healthcare

1614 | Building Name (if applicable), Address