Holliday Fenoglio Fowler, L.P. acting by and through Holliday GP Corp a Texas licensed real estate broker (“HFF”). PORT ARTHUR CENTER PORT ARTHUR, TEXAS - EXECUTIVE SUMMARY INVESTMENT HIGHLIGHTS PROPERTY OVERVIEW • Newly Redeveloped Class “A” Shopping Center in Houston MSA | 100% Leased to National Tenants ADDRESS 2770 Highway 365, Port Arthur, Texas 77640 • Average Lease Term of 9.25 Years | Long Term Stable Cash Flow LOCATION SEC of Highway 365 & Highway 69 • Located at a Dynamic Retail Intersection | National Tenants include Walmart Supercenter, Office OCCUPANCY 100% Depot, Ross Dress for Less, Petco, Best Buy, and Academy Sports + Outdoors PARKING 334 Spaces (3.95/1,000 SF) • Outstanding Location at a Highly Visible Intersection of Highway 69 & Highway 365 | Traffic YEAR BUILT 1996; Renovated 2014. Petsmart; New Construction 2015 Counts over 65,000 Cars per Day TOTAL GLA 84,584 SF • Exceptional Demographics | Immediate Area has Seen Nearly 10% Growth Over the Last 5 Years LAND SIZE Approximately 5.75 acres • Significant Commercial Activity & Development in Port Arthur | Natural Gas Project Golden Pass LNG Terminal will Create Approximately 45,000 Direct and Indirect Jobs across the Country DEBT Available for New Market Rate Financing 2 HIGHWAY 287 | 49,048 VPD FM 365 | 12,966 VPD PORT ARTHUR CENTER 3 LOCATION MAP DEMOGRAPHICS DESCRIPTION 1 MILE RADIUS 3 MILE RADIUS 5 MILE RADIUS POPULATION Magnolia St Folsom Dr 2020 Projection 4,241 37,577 80,378 W Lucas Dr 2015 Estimate 3,925 36,272 78,512 Major Dr 1442 2010 Census 3,571 35,348 77,674 87 Sour Lake Rd 2000 Census 3,973 34,441 77,182 Beaumont 105 105 Growth 2015-2020 8.1% 3.6% 2.4% S 4th St S 11th St Growth 2010-2015 9.9% 2.6% 1.1% Washington Blvd 380 1442 Growth 2000-2010 1006 -10.1% 2.6% 0.6% Sara St Walden Rd HOUSEHOLDS 2020 Projection 1,931 15,681 29,734 2015 Estimate 1,750 15,078 28,932 124 87 2010 Census 1,531 14,612 28,520 347 2000 Census 1,651 13,968 27,925 Growth 2015-2020 10.4% 4.0% 2.8% 93 Spurlock Rd 366 27th St Growth 2010-2015 14.3% 3.2% 1.5% Growth 2000-2010 -7.3% 4.6% 2.1% Jack Brooks Taft Ave Regional Airport 347 INCOME Port Arthur 2015 Est. Average Household Income $57,856 $67,609 $64,191 Gaulding Rd PORT ARTHUR 2015 Est. Median Household Income $43,678 $52,366 $48,622 9th Ave 124 Hwy 335 CENTER HOUSING VALUE 2015 Est. Median Housing Value $126,845 $143,420 $118,456 Houston, Texas – 88 miles 2015 Est. Average Household Size 2.2 2.4 2.5 4 PORT ARTHUR CENTER SITE PLAN 6 9 F M H I G H W AY FM HIGHWAY 69 FEEDER ROAD 5 6 3 Y A W H G I H M F N E W L O A D I N G D O C K Decommissioned Space L O A D I N G D O C K 2 L O A D I N G D O C K 1 T R A S H C O M PA C T O R 5 TENANT PROFILES Hobby Lobby operates 597-plus stores in about 40 states and sells arts and crafts supplies, baskets, beads, candles, frames, home-decorating accessories, and silk flowers. It also has operations in China, Hong Kong, and the Philippines, and it is the #3 craft and fabric retailer (behind Michaels Stores and Jo-Ann Stores). Sister companies include: Mardel, a seller of Christian and educational products; and Hemispheres, a supplier of home furnishings and other merchandise to Hobby Lobby stores. CEO David Green, who owns the company, founded Hobby Lobby in 1972 and operates it according to biblical principles, including closing shop on Sunday. The company is listed in Forbes and Fortune’s list of Largest Private Companies. Party City is the leader in the party goods industry. As America’s largest specialty party goods chain and the country’s premiere Halloween specialty retailer, Party City operates more than 800 company-owned and franchise stores throughout the United States and Puerto Rico. Party City Corporation is owned by Party City Holdings, Inc. and has its headquarters in Rockaway, New PetSmart, Inc., together with its subsidiaries, operates as a specialty retailer of products, Jersey. The Company designs, manufactures and distributes party goods through its vertically services and solutions for pets in the United States, Puerto Rico and Canada. Founded in 1986 aligned retailers as well as other retailers worldwide. The Company’s worldwide locations include and headquartered in Phoenix, Arizona, the retailer is engaged in the sale of pet supplies as their corporate headquarters in Elmsford, NY as well as locations throughout Asia, Europe, well as offers such services as grooming, dog training, boarding facilities and daycare. PetSmart the Americas and Australia. The Company operates seven state of the art distribution centers also offers a varied selection of animals for sale and adoption that include birds, fish, reptiles, throughout the world and six manufacturing facilities domestically. Product is manufactured both amphibians and numerous other small animals. in the United States and overseas. 6 PORT ARTHUR MARKET OVERVIEW HISTORY LNG is planning a $10 billion LNG export terminal that would create 140 permanent jobs and • Originally platted in 1895, Port Arthur was and is a link to the world with deep-water access to the Total and BASF are planning a $2 billion ethylene cracker that could create 3,500 construction Gulf of Mexico, linked to the entire continent by rail, highway and air. Refining and Petrochemical jobs and 45 full-time jobs once complete. All in all, these projects could in all create more than companies have been the mainstay for business in Port Arthur for more than 100 years. 13,000 temporary construction jobs and over 700 full-time jobs in the coming years, a significant • In 1901, the eruption of the Lucas Gusher at Spindletop changed the economic face and economic impact for the Port Arthur area. Port Arthur’s population numbers 50,000. Taking future of Port Arthur forever. The port quickly began to serve the needs of the up-and-coming into consideration the full number of petrochemical projects currently under construction or petrochemical companies such as Gulf Oil Corporation and Texaco. By 1957, Port Arthur was proposed along the Texas and Louisiana Gulf Coast, and the amount of investment grows to known as the center of the world’s prosperous oil refining facilities. over $100 billion. • More than half of the top employers in Port Arthur are related to the petrochemical industry in PETROCHEMICAL CONSTRUCTION BOOM • Hydraulic fracturing (“fracking”) and advanced drilling technologies allowed exploration and some way (please see Top Employers chart). production companies to release oil and gas from shale rock formations in the U.S. for the first # FULL-TIME # PART-TIME RANK EMPLOYER TYPE EMPLOYEES EMPLOYEES time in history within the past few years. The overwhelming amount of natural gas released 1 Motiva Enterprises, LLC Petroleum Refining 1300 0 from these formations caused gas prices to sink, which has been great for chemical companies, 2 Huntsman Corp. Plastics Material and Resin 1250 0 Manufacturing since many of them use natural gas liquids as feedstock for their products and use natural gas 3 CHRISTUS St. Mary Hospital General Medical and Surgical 900 0 to power their plants. As drivers benefit from low gas prices, so, too, do refiners – on a massive Hospital 4 Valero Petroleum Refining 825 0 scale. The recent collapse in oil and gas prices from Q4 2014 to the present only added incentive 5 Walmart Supercenter 2 locations Department Store 650 0 for downstream companies to invest in new refineries and LNG plants in Texas. 6 Medical Center of Southeast Texas, General Medical and Surgical 562 35 The Hospital • Bill Gilmer of the UH Bauer Institute for Regional Forecasting says that economic expansion from 7 TOTAL Port Arthur Refinery Petroleum Refining 500 0 the north and west of the Houston metro area is shifting to the south and east, as downstream 8 Echo Maintenance, LLC Construction - Petrochemical 500 300 replaces upstream as the near-term job creator. More white-collar jobs will be replaced with blue- 9 Horizon Offshore Contractors, Inc. Oil and Gas Pipeline and Related 400 0 collar jobs. The plants under construction will at first encourage a boomtown with construction Structures Construction jobs in the tens of thousands, with more sustainable job growth in the hundreds expected for 10 Worldwide Sorbent Products, Inc. Remediation Services 320 0 11 Performance Blasting & Coating Painting and Wall Covering 250 0 the longer-term, as the plants require less labor to maintain once up and running. (PBC) Contractor 12 BASF TOTAL Petrochemicals LLC Petroleum Refining 248 0 • Port Arthur is home to the largest refinery in North America and the fifth-largest in the world, 13 Chevron Phillips Chemical Company Chemical & Allied Products 230 0 with a refining capacity of 600,000 bbl/d, owned by Motiva Enterprises, LLC, a 50-50 joint venture LP Merchant Wholesalers between Shell Oil Company (the wholly owned American subsidiary of Royal Dutch Shell) and 14 R & R Marine Maintenance, Inc. Ship Building & Repairing 201 296 Saudi Refining (controlled by Saudi Aramco). 15 Flint Hills Resources Port Arthur Basic Organic Chemical 201 0 Manufacturing • There are currently over $6.25 billion of petrochemical projects under construction in the Port 16 Chevron Global Lubricants Petroleum Merchant Wholesale 200 0 Arthur area, and an additional $22 billion of proposed projects.