energy medical corridor update

ENERGY MEDICAL CORRIDOR BUSINESS DEVELOPMENT UPDATEENERGY MEDICAL CORRIDOR BUSINESS DEVELOPMENT UPDATEENERGY MEDICAL CORRIDOR BUSINESS DEVELOPMENT UPDATEENERGY MEDICAL CORRIDOR BUSINESS DEVELOPMENT UPDATE

08.31.201508.31.201508.31.201508.31.2015

FOR INFORMATION PURPOSES ONLY

Prepared By:

Edward Cook, CGMA

Chartered Global Management Accountants & Consultants

[email protected]

832.244.4550

1001 S. Dairy Ashford, Suite 100

Houston, TX 77077

Table of Contents

Page 1

9.3.1 Energy Medical Corridor.........................................................................................................19.3.1.1 SKANSKA West Memorial Place ............................................................................149.3.1.2 Republic Square ......................................................................................................199.3.1.3 Westlake ..................................................................................................................249.3.1.4 Conoco.....................................................................................................................339.3.1.5 Shell .........................................................................................................................37

9.3.1.5.1 Woodbranch Plaza Jacobs Engineering ....................................................389.3.1.6 Grisby Square ..........................................................................................................399.3.1.7 Eldridge Place..........................................................................................................42

9.3.1.7.1 Eldridge Oaks .............................................................................................459.3.1.9 Central Park .............................................................................................................469.3.1.10 Park Ten ................................................................................................................509.3.1.11 Ten Oaks ...............................................................................................................529.3.1.12 Mac Haik Gateway to the Energy Corridor ............................................................549.3.1.13 Texas Medical Center West Campus ...................................................................559.3.1.15 Memorial Drive Upgrades .....................................................................................589.3.1.16 Terry Hershey Park ................................................................................................58

9.3.3 City Centre ............................................................................................................................589.3.4 Memorial City .......................................................................................................................59

Energy Medical Corridor Business Development Update 08312015

11:40 AM8/31/2015 FOR ILLUSTRATION PURPOSES ONLY Page 1

9.3.1 Energy Medical Corridor



CIP Memorial Drive ReconstructionThe City of Houston has started a large Capital Improvement Plan (CIP) project torebuild Memorial Drive from Kirkwood to Eldridge. This is a mobility project that whenfinished, will solve many of the traffic problems we now experience.

Six bids on MemorialLow bid: $32,720,726High bid: $38,878,875Remaining 4 bids: $37-38 millionLow bid was $5 million below second.



Three bids for Kirkwood-Dairy Ashford panel replacement.Low bid: $841,168

Current Project Status/Remarks:Bid Set: http://bidsets.publicworks.houstontx.gov/documents/plansets/project_manual_n_000798_0001_4.pdfOther Info for Bid: http://bidsets.publicworks.houstontx.gov/index.php/bid-sets/view_category?layout=columnsAdvertisement Date: May 7Advertisement Information:

Project Name: Memorial Drive Paving And Drainage ImprovementsWBS Number: N-000798-0001-4; CSJ No. 0912-70-082Bid Date: May 7, 2015Project Location: Bound by IH-10 on the North, Briarforest on the South, North Kirkwoodon the East and North Eldridge Parkway on the West for the section from Memorial Drivefrom Kirkwood Road to North Eldridge ParkwayProject Manager: Michelle Randon, P.E. Phone Number 832-395-2238Estimated Construction Cost: $27,728,075.00Prebid Meeting: Tuesday, April 28, 2015, at 10:00am, 14th Floor, ConferenceRoom No.1453, 611 Walker Street, Houston, Texas 77002

Construction Start Estimate: Fall 2015Supporting Project Data:Overhead Drawings showing revised median openings - received 5/7/2014These are large PDF files, Google will not render them with full detail. Once the file is onyour screen in Google docs, download and save them (hit the down arrow on the top left ofthe screen), then open them in Adobe on your computer for full resolution.Western SectionCenter SectionEastern SectionPreliminary Engineering & Design - Contract document for Memorial CIP preliminaryengineeringTech Review Committee presentation on the Eldridge/Memorial Intersection redesign. Thisis an example of the process PWE uses to determine the design solution. Warning - this isa very large file.Tech Review Presentation 2/21/12 - Warning 22MAccess Management Study - Dated April 2013 (now obsolete)SummaryAppendices A-DAppendix E, overhead views (opens another page)Access Management Study - Dated October 22 2013These are very large PDF files, Google will not render them with full detail. Once the fileis on your screen in Google docs, download and save them (hit the down arrow on the topleft of the screen), then open them in Adobe on your computer for full resolution.Western SectionCenter Section



Eastern SectionPWE Access Management Comment Form - Please send to PWE by Nov 22.The community is working on decorative lighting and planting the green spaces to makethis project more attractive.

Lighting Project:Street Lighting Plans Layout Sheet 1 Sheet 2 Sheet 3Beautification Project:Project FlyerAdopt An Esplanade - For more info see Green Houston programs

Background and Historical Documents

Super Neighborhood Infrastructure Committee Recommendations

The SN recommendations were collected by the Infrastructure Committee over a periodof several months and those recommendations were sent as a letter to Council MemberPennington on August 12, 2010.

The Energy Corridor Management District sent their recommendations in August 2010.

SBISD sent their recommendations in September 2010.SN letter of support for Memorial Drive CIP outlining the anticipated growth in the area(9/27/2012)COH letter acknowledging the SN letter of support (10/5/2012)Mayor Parker's response (10/9/2012)Infrastructure Committee Generated:Rob Benz's Memorial Project Overview (presented to SN Meeting on Nov 28, 2011)Rob's pictures of the Memorial Project (pictures taken at the Nov 30, 2011 public meeting)

9.3.1.1 SKANSKA West Memorial Place



Skanska moves forward on second controversial Energy Corridor towerJan 21, 2015, 5:11pm CST Updated Jan 22, 2015, 10:00am CSTINDUSTRIES & TAGS Commercial Real Estate, Construction

· Roxanna AsgarianReporterHouston Business Journal



The second tower of the West Memorial Place complex is slated to be complete in theSkanska has received a building permit for a second Energy Corridor office high-rise.The core and shell construction and parking garage will cost $110 million.West Memorial Place II will have 380,000 square feet of spec office space and will havea similar layout as the first building in the complex, the existing West Memorial Place.The complex sits on the 12-acre site where Arco's former building was located, as wellas Lake Thicket, a two-acre pond that was home to a multitude of ducks and otherwildlife. Neither the former Arco building Arco was acquired by London-based BPPLC (NYSE: BP) in 2000 nor Lake Thicket remain on the site."Then again, we're talking about commercial real estate. From that perspective, it's goingto be very nice-looking," Navissi said. "Of course tall trees have a different look. But atthe end of the day, from the commerce side of it, it's going to be extremely positive."The first building on the site, West Memorial Place, is 12 stories and 58 percentleased. Petroleum Geo-Services, whose U.S. operation is Houston-based, is the largesttenant, occupying 125,000 square feet. West Memorial Place II, which will be 14 storiesand has not yet begun leasing, is expected to be complete in the spring of 2016.Skanska USA Building is the general contractor on the project and Saint Louis-based HOK is the architect.Both buildings are hoping to be LEED Platinum certified. Skanska said they will be the firstspec office buildings of that distinction in the Energy Corridor.Gregory Mondshine, a leasing director at Skanska, said they've made landscaping apriority, and are putting in more trees than they've taken out."It's a unique campus setting right there on Memorial with direct access to the park,"Mondshine said. "That connection to nature is one of our biggest selling points."



With West Memorial Place, Skanska is introducing a next generation building for a future-focused city. Progressive, LEED-Gold designed and lifestyle-focused, West MemorialPlace is a stylish, efficient office setting that supports business success and whereemployees can thrive.Contact UsFor Leasing InformationGreg MondshineSkanskaDirector - [email protected] GarrettSkanskaManager - [email protected] TahbazSkanskaAssociate - [email protected]

Overall Development Project FactsProject Description



Energy-efficient glass and stone exteriorMinimal columnsLocationIn the center of Houston’s Energy CorridorUnique campus setting adjacent to Terry Hershey Park Hike & Bike TrailsAccessRemoved from the direct congestion of I-10 yet with excellent access to I-10, Highway 6,Eldridge Parkway, Beltway 8 and the Grand ParkwayThree access points off Memorial DriveAmenitiesAdjacent to Terry Hershey Park Hike & Bike Trails24/7 SecurityCard key access systemOn-site property managementParking4/1,000 RatioEnclosed, conditioned walkways to buildingsSustainabilityDesigned to be LEED Platinum Certified and to consume 30% less energy than typicalbaseline buildingsSustainable features including a demand control ventilation system and energy recoverywheel provide energy efficiency and tenant convenienceDaylight harvesting and motion detection systems in the garagesElectrical6.9 watts PSF of powerDual power feeds from two separate substationsUnderground utilities provide security and beautify areaBackup generator location available for tenant useDeveloperSkanska USA Commercial DevelopmentArchitectHOK, Houston

Building I Project FactsAddress15375 Memorial DriveHouston, Texas, 77079Building Size12-story, 331,000 SF Class A office buildingNine-level parking garage with 1,326 parking spacesProject DescriptionFloor 2: 23,088 rentable square feetFloors 3-6: 29,301 rentable square feetFloors 7-12: 28,655 rentable square feetEnergy-efficient glass and stone exterior8-10 column-free corner offices per floorBuilding Amenities



Fitness CenterShowers and lockersOn-site caféParkingNine levels of garage parkingThree garage elevators with air conditioned vestibules

Building II Project FactsAddress15377 Memorial DriveHouston, Texas, 77079Building Size14-story, 385,000 SF Class A office buildingEight-level parking garage with 1,319 parking spacesProject DescriptionFloors 2-14: 28,571 rentable square feetUp to eight column-free corner offices per floorBuilding AmenitiesFitness CenterShowers and lockersOn-site caféParkingEight levels of garage parkingThree garage elevators with air conditioned vestibules

9.3.1.2 Republic Square

Republic Square at old ExxonMobil Chemical Site



Developer plans urban-style enclave in Energy CorridorBy Nancy SarnoffMay 28, 2015 Updated: May 28, 2015 12:15am• A Houston developer wants to bring a bit of urban sensibility to the Energy Corridor, asection of west Houston known for its suburban office campuses, chain-filled strip mallsand outsized apartment buildings.



The developer, PM Realty Group, is committing $1 billion to building a bustling mixed-use community of upscale apartments, outdoor restaurants, hotels and high-rise officetowers housing companies seeking to recruit a younger generation of workers who valuethe outdoors, collaboration with colleagues and an abundance of amenities.The company says the new development, which it has christened Republic Square, willgive the area a "soul.""We saw an opportunity to create a heart for the Energy Corridor," said Dan Leverett,executive vice president and managing director of development, said this week during apresentation outlining the project at the company's downtown offices.The developer, along with a team of national consultants, designers and planners - someof whom helped develop the commercial district of The Woodlands - has spent the last16 months creating a master plan for the 35-acre site along Interstate 10 that formerlyhoused the chemical operations of Exxon Mobil Corp.REAL ESTATE• Construction is scheduled to begin next year, and the first office building could breakground before the company finds a tenant to occupy it.Yet the timing is complicated by the ongoing slump in crude oil prices, which is slowingdemand for space in the area dominated by energy companies. As a result, there's agrowing amount of empty office space in west Houston.At the end of March, the amount of available office space in the Katy Freeway marketarea reached 26 percent, up from 14 percent the same time last year, according tocommercial real estate firm Savills Studley, which specializes in representing tenants."There are not as many deals as there were a couple years ago," said Mark O'Donnell,executive vice president of the company's Houston office. By and large, those dealsinvolve companies that are moving because their leases are expiring, not becausethey're growing, he said.O'Donnell noted four new office buildings looking for tenants within a "stone's throw" of thePM Realty site."It's just a lot of space out there," he said.Leverett said Republic Square is a long-term project that will be developed over perhaps10 years.The property, formerly home to ExxonMobil Chemical Co., is between Interstate 10 andMemorial Drive, bordering Terry Hershey Park, a 500-acre public park that winds throughthe Energy Corridor.Walkable environmentPM Realty, which plans to tie its development into the park, aims to create a walkableenvironment. The layout arranges buildings around a series of open, public spaces and asystem of pathways and tree-lined streets that connect the development to the surroundingarea. A central public square will be lined with restaurants and greenspace, and anexisting lake will be incorporated into the project.The project will stand in contrast to other developments in the Energy Corridor.As it is now, the area comprises a series of large, "isolated tracts that don't interact,"said Alan Ward with Sasaki Associates. The Massachusetts-based firm, which is alsoone of the firms designing a master plan for the Energy Corridor's management district,has been hired as the landscape designer for Republic Square. Other consultants on theproject include national firms Elkus Manfredi Architects and Pickard Chilton.



The buildings there will be laid out in such a way that encourages walking, Ward said."What really matters is the fabric that ties them together," he said. "That I feel is what we'regoing to do much differently than what exists today."The developer is taking an urban approach to the site by combining as many as 800residential units with five office buildings totaling 2.6 million square feet, two full-servicehotels with connected conference space and 100,000 square feet of retail spaceincluding a fitness facility. The scale of the buildings will be in the 14- to 16-story range,though some could be shorter or taller.The design and amenities incorporated into Regent Square will be a draw to companiesseeking a dynamic office environment, said development consultant Tom D'Alesandro, onetime president and CEO of The Woodlands Development Co. and now president ofBlakefield LLC.Office workers, particularly millennials, place a higher premium on workplaceenvironments, he said.



PM Realty said "the capital is currently in place to develop the entire project," but itwould not reveal specifics.New type of street gridThe first phase, to include an office building, parking garage, hotel and conferencecenter, fitness facility and additional retail, as well as the public square, is scheduled forcompletion by early 2018, the company said.The site will have a new street grid system that the developer said will help alleviatecongestion despite the higher density of the project.Exxon Mobil had about 700 employees who worked on the property previously, saidClark Martinson, general manager of the Energy Corridor District. In the new complex, hesaid, "We'll probably have 1,000 people living on site and a couple thousand peopleworking on the site and hundreds of people visiting daily."Massive mixed-use underway on former Exxon Chemical siteMay 28, 2015, 12:00am CDT UPDATED: May 28, 2015, 7:49am CDT

Republic Square will include up to five office buildings with 2.6 million square feet ofspace, two full-service hotels, and 800 apartment units.

Roxanna Asgarian Reporter- Houston Business JournalAlthough speculative construction has all but halted since the slide in oil prices, one big-time development is betting big on the Energy Corridor.Republic Square, a mixed-use complex on 35 acres off Interstate 10 that was formerlythe site of Exxon Mobil Corp.'s (NYSE: XOM) chemical operations, will be breakingground early next year, according to PMRG, which is developing and leasing the project.Coming with a $1 billion price tag over 10 years, the final development will include up tofive office buildings with 2.6 million square feet of space, two full-service hotels, and 800apartment units. There will also be 100,000 square feet of retail, including a 35,000-square-foot high-end gym, a beer garden and restaurants. An existing conference centerformerly used by Exxon will be kept and revamped.The first phase of the development, which will include at least one office building frontingInterstate 10, a parking garage, a hotel and the "central square" with retail and open-airevent space, will break ground in early 2016 and will begin to deliver in 2017.Boston-based Elkus Manfredi is the architect of the development. Houston-based Kirksey is the architect of record and Connecticut-based Pickard Chilton has beentapped to design potential build-to-suit office space. Tom D'Alesandro of Blakefield LLC,who is the former CEO of the Woodlands Development Co., is consulting on the project.Boston-based Sasaki Associates is the landscape architect, and Austin-based TBGPartners is the landscape architect of record. Bury Inc., also based in Austin, is the civilengineer.The site has 1,000 feet of frontage on I-10 and 800 feet of frontage on Memorial Drive, andborders Terry Hershey Park a 500-acre public park that connects neighborhoods andbusinesses with 11 miles of wooded green space.A priority for the space, the developers said, is increased walkability and a sense ofurban closeness that is lacking in the Energy Corridor."Typically, people who work in the Energy Corridor drive there to work in the morning,drive to lunch, drive home," said Wade Bowlin, executive vice president at PMRG. "Wewant to change the dynamics, not only in this development but in the Energy Corridor



itself, to be more walkable, bikeable, more people using the shuttles lots of things thatdon't exist right now."

9.3.1.3 Westlake



Amid job cuts, BP looks to sublease space at its Westlake campusFeb 12, 2015, 12:10pm CST BP is seeking to sublease some of the office space on its Westlake campus in theEnergy Corridor.Jordan Blum Reporter- Houston Business JournalAs the energy supermajor cuts thousands of jobs globally, U.K.-based BP PLC (NYSE: BP)is looking to sublease office space in two of the buildings that make up its U.S.headquarters.BP is offering office space of about 240,000-square feet in two of the Westlake campusbuildings that it leases, but does not own. The Westlake campus is in Houston's energycorridor.The office spaces being made available are the Westlake Two and Westlake Threebuildings, BP spokesman Brett Clanton confirmed. The space represents about 11 percentof BP's total office space on the campus. The buildings already have some other tenants.



Westlake Park (Houston)Westlake ParkWestlake Park is a 58-acre (23 ha) office complex located in the Energy Corridor,Houston, Texas, United States. The complex, located east of Texas State Highway 6between Interstate 10 and Memorial Drive, consists of One Westlake Park, TwoWestlake Park, and Three Westlake Park. Hines was the developer of the complex, andSkidmore, Owings and Merrill was the architect of the complex. The complex, with a netrentable area of 401,000 square feet (37,300 m2) and 3,635 square feet (337.7 m2) ofretail space, has BP, KBC Advanced Technologies, Mariner Energy, and Oxy Permianas major tenants.1One Westlake Park consists of a 28 story building and a 5 story building, with a total of949,968 square feet (88,254.9 m2). The complex contains the BP Americasheadquarters.1The 17 story Two Westlake Park, which contains 381,327 square feet (35,426.4 m2) ofspace, was completed in 1982. The building, which contains Class A office space.1 Thebuilding includes the 55,000 square feet (5,100 m2) WestLake Club, an athletic andsocial club, is located on a 5 acres (2.0 ha) plot of land.1 The tower is just over 97percent occupied. Tenants include Conoco-Phillips, BP and Merrill Lynch.2 YounanProperties bought the building on September 26, 2007 from Wind Realty Partners ofChicago.2 Zaya Younan, chairman and chief executive officer of Younan Properties, saidthat he wanted to be the largest office landlord in the Bayou City.2 The purchase of theTwo Westlake Park gave the firm a total of 1,700,000 square feet (160,000 m2) of ClassA office space in Houston.2The 20 story Three Westlake Park, which contains 428,000 square feet (39,800 m2) ofspace, was completed in 1983. A 1,247 car parking garage is located next door toThree Westlake Park.1 In 2002 an affiliate of General Electric Pension Trust gained an80% interest in the property for about $47 million. At the end of September 2006 ThreeWestlake Park was almost 100% occupied. Its tenants included Amoco Production Co.,Conoco-Phillips and Exxon Mobil. On December 11, 2006 a joint venture of the GE affiliateand Crescent Real Estate Equities Co. sold the building to Falcon Real Estate. Crescentexpected to acquire about $17 million in net income.3Four Westlake Park, which was a park of the complex, has 561,065 square feet(52,124.6 m2). In 2006 an affiliate of GE Pension Trust and Crescent Real EstateEquities Co. sold the building to Falcon Real Estate. As of June 30, 2006, BP occupiedmore than 90 percent of the building.4The WestLake Child Development Center is the on-site daycare.5

Westlake Three



Westlake Four