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, Oklahoma • 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., Oklahoma City, 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 SAFETY1/8¢ 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.