COMING SOON A world-class, life science complex with shared and proprietary research centers, multi-disciplinary laboratories, healthcare institutions, a hotel and conference center, retail, SITE and a unique double-helix green space totaling almost 3.7 million square feet of developed property FANNIN ST OFFERING MEMORANDUM 7979 FANNIN ST 7979 FANNIN ST | HOUSTON, TX 77054 Brad LyBrand Senior Vice President Glenn Dickerson LAND SALES Vice President NewQuest Properties has been retained as the exclusive Broker for the The subject site represents a rare opportunity to purchase a property in disposition of 7979 Fannin Street in Houston, Texas. The subject property is one of the most tightly controlled real estate markets in the United States. 3.23 acres and is improved with a 167 room exterior corridor Extended Stay The land is bordered by the Texas Medical Center (TMC) with 100,000+ America branded hotel built in 1995. The property will be sold free and clear employees and over 7.5 million patient visitors per year. The subject site abuts of any encumbrances. The land value now far exceeds the improvements and Reliant Park, home to the Houston Texans, Houston Livestock Show & Rodeo, the site is best suited for redevelopment to an alternative or upgraded use. and numerous concerts and conventions on an annual basis. Given access to major thoroughfares, Houston Metro Rail, proximity to TMC & Reliant Park, and opportunity zone designation the subject site has limitless potential. MAIN SITE FANNIN ST ALMEDA RD 2 HOUSTON AT A GLANCE KEY ECONOMIC INDICATORS Metro Houston created 79,800 jobs, a 2.6 percent increase, in the 12 months ending May ’19, according to the Texas Workforce Commission (TWC). Employment now stands at 3,163,600, the highest point on record. At the current pace of growth, the region should top 3.2 million jobs by year’s end. AVIATION INFLATION The Houston Airport System (HAS) handled 59.4 million The energy index in the Houston Metro Area ticked down 0.5%, passengers in the 12 months ending May ’19. That’s another the shelter index increased 3.2% and grocery prices rose 3.2% record for Houston and an 8.0% increase from the 55.0 million from May ’18 to May ’19. handled over the preceding 12 months. BUILDING PERMITS HOME SALES City of Houston building permits totaled $909.1 million in May ’19, Houston-area realtors sold 8,346 single-family homes in May, a up 81.8 percent from $500.0 million in May ’18, according to the 2.8% increase from last year, according to data from the Houston latest data released by the city’s Public Works Department. Association of Realtors. CONSTRUCTION VEHICLE SALES Metro Houston’s construction starts totaled $19.6 billion in the 12 Dealers sold 25,381 new vehicles, a 7.0% jump from May ’18, months ending May ’19, up 9.8% from $17.9 billion in ’18, according according to TexAuto Facts, published by InfoNation, Inc. of to the latest data from Dodge Data & Analytics. Sugar Land. Year-to-date vehicle sales ticked up 2.7% compared to the first five months of last year. 3 T S IN N N AERIAL VIEW A F G R E E N B R I A R D R 15 ACRE MEDICAL CAMPUS Coming Soon SITESITE 282 Class A Luxury Units Coming 2022 KNIGHT RD FANNIN ST FANNIN METRORAIL 4 PROPERTY DETAILS 2019 TAX RATES ADDRESS 7979 Fannin Street, Houston, TX 001 Houston ISD 1.206700 040 Harris County 0.418580 LATITUDE, LONGITUDE 29.689506, -95.402506 041 Harris County Flood Control 0.028770 TOTAL ACRES ±3.23 Acres 042 Port of Houston Authority 0.011550 FRONTAGE (APPROX.) 396 ft. on Fannin Street 043 Harris County Hospital District 0.171080 ACCESS Fannin Street 044 Harris County Educucation Dept 0.005190 048 Houston Community College 0.100263 UTILITIES City of Houston 061 City of Houston 0.588310 SCHOOL DISTRICT Houston ISD TOTAL 2.530443 2020 DEMOGRAPHICS 1 MILE 3 MILES 5 MILES LOCATED IN AN OPPORTUNITY ZONE 2020 Estimated Population 17,725 136,770 399,592 5-YR Est. Population Growth 0.6% 0.7% 0.7% Average Household Income $59,782 $124,799 $120,836 ADDITIONAL PROPERTY DETAILS Median Owner-Occupied $172,518 $390,836 $333,831 Housting Value PARCEL ID 1182320010001 OWNER ESA P Portfolio, LLC MEDIAN PROPERTY 7979 Fannin | Houston, TX 77054 HOUSEHOLD INCOME 1 MILE 3 MILES 5 MILES 2025 Projected Median HHI $62,773 $141,375 $136,470 Res A Blk 1 Homestead Village LEGAL Astrodome 2020 Estimated Median HHI $54,090 $124,799 $120,836 2010 Census Median HHI $49,675 $97,041 $91,712 PRICING To Be Determined by Market 2000 Census Median HHI $44,037 $77,870 $71,311 5 AERIAL VIEW FM 521 OLD SPANISH TRAIL SITE METROrail • NRG Center - 1.4M SF exhibit Reliant Park Station and conference facility • NRG Stadium - 71,500 seating capacity, 97,000 SF natural FANNIN ST grass playing field KIRBY DR • NRG Arena - 349,000 SF • 2019 Total Attendance: event facility 2.5+ million • NRG Astrodome - 1M SF • $227 Economic Impact football/baseball/concert facility, 70,000 max seating capacity • $391 economic activity 6 TRADE AREA LAND SCARCITY 3–5 ACRES NOT AVAILABLE OLD SPANISH TRAIL MAIN 3–5 ACRES NOT AVAILABLE 3–5 ACRES NOT AVAILABLE 3–5 ACRES NOT AVAILABLE ALMEDA RD FANNIN Areas shaded in blue are part of The Texas Medical Center or There are no properties in 3 – 5 acre range that are available or Harris County and are not available. Areas shaded in red are being marketed for sale in the trade area. The subject property primarily condominiums, retail and Multifamily. Most all of these represents a truly unique opportunity for a purchaser to acquire properties are owned by institutional investors or private capital, land in one of the most tightly controlled markets in the greater and are not for sale. Houston MSA. 7 TEXAS MEDICAL CENTER TEXAS MEDICAL CENTER UPCOMING DEVELOPMENTS <1 MILE FROM THE PROPERTY $8.2 billion in new construction projects are underway in the Texas Medical Center The largest medical center in the world, and home TMC3 to Texas Children’s Hospital. TMC3, the medical center’s translational research Memorial Hermann The TMC encompasses: campus, will bring together several member • $650 million renovation and expansion • 1,345 total acres institutions, including Baylor College of Medicine, • Building new patient care building and Texas A&M University and The University of Texas upgrading infrastructure • 50 million developed square feet System; the campus has an estimated economic • Adding 1.3 million square feet in a new • 8th largest business district in the United States impact of $5.2 billion once the campus gets underway space and increasing their size by 50% • 9,200+ total patient beds in the next couple of years. TMC3 recently kicked off a • Expected completion: 2019 • 8 million patient visits per year new $25 million venture fund. • 13,600+ total heart surgeries Baylor St. Luke’s McNair Campus Texas Children’s Hospital • 25,000+ babies delivered per year • New 1.2MM SF facility on 27.5 acres • $506 million expansion • 59 member institutions • In various stages of completion, renovation • A dding 19 floors to existing tower for new heart • $2 billion in research conducted each year and construction center, expanded critical care, and diagnostic and • $35 billion estimated regional economic impact therapeutic services • Second patient tower with 650 patient beds and medical office building planned • 106,000+ total employees • Expected completion: 2019 • Expected completion: 2019 MAJOR EDUCATIONAL INSTITUTIONS Baylor College of Medicine Rice University The University of Texas Health Science Center • Leaders for biomedical research. • Comprehensive research university consistently • Fills three million square feet of the TMC • Hos ts approximately, 3,378 faculty and 1,211 students ranked among top 20 universities in the U.S. overall • Hosts more than 350 undergraduate students, • Rank s 7th in the nation for primary care and 13th • One of only three Tier One universities in Texas 3,399 post graduate students, and 1,261 faculty for research according to the U.S. News and World • 665 full-time and 197 part-time instructional faculty members Report • 98% of full-time instructional faculty have a doctorate or terminal degree in their field • 3,8 79 undergraduate and 2,744 graduate degree- seeking students 8 FORT WORTH LOCATION OVERVIEW #3 Top Moving Destination 2017 DALLAS #1 Fastest Growing Housing Market 2018 #1 Top 20 Business-Friendly City POPULATION 27,939,904 HOUSTON 2ND FASTEST #2 Fastest Growing Housing Market 2018 #7 Top 2- Business-Friendly City GROWING ECONOMY NO STATE IN THE U.S.A. INCOME TAX AUSTIN #1 Best Places to Live 2018 #12 Top 20 Business-Friendly City TOP STATE FOR BEST STATE SAN ANTONIO JOB GROWTH FOR BUSINESS #14 Best Place to Live 2018 13+ MILLION WORKERS 10TH YEAR IN A ROW FORTUNE 500 LARGEST 54 COMPANIES MEDICAL CENTER CALL TEXAS HOME 2ND LARGEST CANCER CENTER MD ANDERSON, HOUSTON AWARDED 2014 GOVERNOR’S CUP OVER 3,000 COMPANIES HAVE FOR THE MOST NEW AND EXPANDED LOCATED OR EXPANDED CORPORATE FACILITIES: 689 FACILITIES IN TEXAS SINCE 2009 9 LOCATION HIGHLIGHTS As the fifth most populous metro area in the U.S., Houston houses roughly 6.9 million people in southeastern Texas. The market is composed of nine counties: Harris, Galveston, Brazoria, Fort Bend, Chambers, Montgomery, Austin, Liberty and Waller. The Gulf of Mexico, which borders the metro to the southeast, provides access to markets around the world via the Port of Houston, making it a prime location for exports. Local industries have diversified from oil to technology and healthcare.