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S H O P P E S ATBAYTOWN

Holliday Fenoglio Fowler, L.P. acting by and through Holliday GP Corp a Texas licensed real estate broker (“HFF”).

OPPORTUNITY TO ACQUIRE A FULLY LEASED SHOPPING CENTER WITH VALUE ADD COMPONENTS IN THE THRIVING BAYTOWN MARKET


B AY TOW N , T E X AS ( H O U STO N M S A ) • E X E C U T I V E S U M M A RY

INVESTMENT SALES

RYAN WESTSenior Managing DirectorT. (713) [email protected]

JOHN INDELLIAssociateT. (713) [email protected]

JOHNNY KIGHTReal Estate AnalystT. (713) [email protected]

FOR FINANCING INQUIRIES

MICHAEL JOHNSONAssociate DirectorT. (713) [email protected]

HFF HOUSTON9 Greenway Plaza, Suite 700Houston, Texas 77046T. (713) 852-3500F. (713) 527-8725hfflp.com

HFF L.P., (“HFF”) is pleased to present the opportunity to acquire Shoppes at Baytown (the “Property”), a 75,591 SF, 100%leased retail center ideally situated along Garth Road immediately south of Interstate-10 East in Baytown, TX. Shoppesat Baytown offers investors the unique opportunity to acquire a fully leased shopping center in the thriving and expandingBaytown market with imbedded value-add components perfectly suited for short-term three to five year and long term hold periods alike.• Opportunity to develop an additional pad site and mark current bank pad to market which will significantly increase NOI• In place rents are 20% below market - Boost value and cash flow through short and long term mark to market opportunities• Capitalize on yearly double digit cash on cash returns• Significant growth underway in Baytown underpinned by expansion in the Port of Houston and petrochemical plants• Offered free and clear of debt so investors can capitalize on historically accretive financing options

1

FINANCIAL SUMMARYYear 1 NOI: $720,473

Wtd. Average Remaining Lease Term: 3.2 Years

10 Year CAGR: 4.72%

5 Year CAGR: 4.05%

Rollover Summary

Within 3 Years of Operation 64.5%

Within 5 Years of Operation 91.6%

PROPERTY DASHBOARD

NET OPERATING INCOME

$500,000

$600,000

$700,000

$800,000

$900,000

$1,000,000

$1,100,000

$1,200,000

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

NOI

59%13%

27%

Na�onal Regional Local

PROPERTY SUMMARYAddress: 6902-6958 Garth Rd

Baytown, Texas 77521

Location: SEC of Garth Rd and Interstate 10

Year Built: 1984 (2006 Renovation)

Net Rentable Area: 75,591

Land Area: 5.959 Acres

Parking Spaces: 412 (5.46 / 1,000 SF)

In-Place Occupancy: 100.0%

Traffic Counts: Interstate 10: 92,000 VPD Garth Road: 34,000 VPD Total: 126,000 VPD

Wtd. Average In-Place Rent: $11.89

Percent Below Market: 20% RSF Expiriing Cumula�ve % Expiring

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

-

5,000.00

10,000.00

15,000.00

20,000.00

25,000.00

Dec-18 Dec-19 Dec-20 Dec-21 Dec-22 Dec-23 Dec-24 Dec-25 Dec-26 Dec-26 +

TENANT DIVERSIFICATION LEASE EXPIRATION SCHEDULEPredominately National and Regional Tenants Staggered Expirations Over the Next Five Years Presents the Near-Term

Opportunity to Increase Rents

45

I H - 4 5 | 1 5 5 , 3 4 0 V P D

I H - 4 5 | 1 5 5 , 3 4 0 V P D

G A R T H R O A D

G A R T H R O A D

SAN JACINTO MALL

U/C


• Immediate connectivity to and visibility from one of Houston’s busiest freeways – Interstate 10 (92,000 VPD)

• Positioned at the center of gravity in Baytown which is shifting north along Garth Road due to imminent delivery of brand new HEB and Fidelis’ planned repositioning

of San Jacinto Mall

• Recognized, successful, national brands comprise nearly 60% of the strip center

• Strong demographic fundamentals and economic activity to support immediate area underpinned by the strength of the Port

• Ability to increase NOI by capitalizing on embedded rent growth and development opportunities

• Extremely tight immediate retail trade area with 98.3% average occupancy (Garth Rd corridor between I-10 & Hwy 146)

• Located minutes from Houston’s Port and Industrial facilities which provides significant weekday customer traffic

• Port of Houston is a primary economic driver - Ranked #1 in import tonnage for the past 25 years.

• Houston-Galveston custons district haulled $162 bn in trade, making it the largest export market in the U.S.

2

S H A R O N L A N E

GA

RT

H R

OA

D

5,270 SF

8,862 SF

10,440 SF

Lee Palace4,578 SF

Recent5-Year

Renewal

Bounce12,403 SF

Elite MMA10,000 SF(thru 2022)

8,342 SF

Dental Office - 1,587 SF

1,197 SF

1,363 SF

Metro PCS - 1,669 SF

Nail Salon - 823 SF

1,174 SF

U.S. ArmedForces

4,924 SF

WoodforestNational Bank

2,691 SF

S H O P P E S AT B AY T O W N6 9 0 2 G A R T H R O A DB AY T O W N , T E X A S

12,403

THOUGH STABLE, INVESTORS HAVE OPPORTUNITY TO EXPAND THE CENTER AND CREATE VALUE

A. 4 Points of ingress/egress from Garth Road and Sharon Lane road provide easy access to the shopping center

B. Address Woodforest bank pad which is paying a rate significantly below market with a 2021 lease expiration (and FMV option)

C. Develop additional pad alongside the east side of the parking lot along Garth Road

D. 5.56 / 1,000 SF Parking Ratio offers adequate parking for all business types

E. Elite MMA recently signed a 5 year lease for $6.60 PSF. The space is ideal for destination/fitness retailers seeing discounted rent.

SITE PLAN

A

A

A

A

C

C

C

D

E

3

4

SAN JACINTO MALLFidelis Realty Partners recently acquired the San Jacinto Mall and plans to completely redevelop the property into the preeminent retail destination in east Houston. The center will draw a wide variety of highly sought-after tenants and will not only become the area's premier shopping destination, but also a family-friendly center where the community can congregate to enjoy shopping, dining and entertainment options in an inviting, spacious and aesthetically pleasing environment.

SUPER REGIONAL TRADE AREAThe trade area caters to a large radius of people from East Houston to West Beaumont. With limited retail centers east of Baytown, the area’s convenient location on Interstate 10 caters to households from over 20 miles away. With H-E-B, Kroger, and Academy committing to the immediate trade area, there has been a significant push north towards the subject property and Interstate 10. Coupled with the redevelopment of the mall, traffic counts and activity are expected to increase dramatically.

GULF COAST REGION ECONOMIC ACTIVITYThe Port of Houston is one of the busiest and most heavily employed ports in the world. It ranks 1st in foreign tonnage and 2nd in domestic tonnage among US ports. 68% of the Gulf Coast container traffic flows through the Port of Houston. Aside from the Port of Houston, there has been $50 billion worth of chemical plant constructions since 2013 due to the petrochemical boom. The American Chemistry council predicts this industry will help create 195,000 jobs in the area by 2023.

PETROCHEMICAL BOOMThe multibillion-dollar petrochemicals boom injects new life into Baytown. Significant global demand for petrochemical products is feeding a $50 billion to $60 billion construction burst at east-side refineries and chemical plants now flush with reasonably priced natural gas and oil - feedstock for plastics and other products they make. Developers are building houses, apartments and stores from the ground up which will add critical mass to the trade area.

OUTSTANDING DEMOGRAPHICSWith an astounding 33% population growth over the last seven years, it is poised to grow by an additional 14% by 2022. The average household income is almost $85,000 due to the local oil and gas industries.

PORT OF HOUSTON OVERVIEWSource: Port Of Houston AuthorityThe Port of Houston is made up of the Port of Houston Authority and the 150+ private industrial companies along the 52-mile Houston Ship Channel. All together, the port authority and its neighbors along the ship channel are a large and vibrant component of the regional economy. As one of the world’s largest seaports, The Port of Houston has been instrumental in Houston’s development as a center of international trade. About 100 steamship lines offer service linking Houston with 1,053 ports in 203 countries. Each year, more than 200 million tons of cargo move through the Port of Houston, carried by more than 8,000 vessel and 200,000 barge calls. Overall, it is a $15 billion petrochemical complex, the largest in the nation and second largest worldwide.

EXXONMOBIL BAYTOWN OVERVIEWSource: ExxonMobilThe ExxonMobil Baytown area is the largest petroleum & petrochemical complex in the United States. Founded in 1920, the complex covers five square miles or 3,400 acres along the Houston Ship Channel. The complex includes a refinery, two chemical plants, a regional engineering office and a global technology center. A plastics plant is located in nearby Mont Belvieu.

BAYTOWN TRADE AREAS

54

LOCATION MAPS

LakeHouston

San Jacinto

Bay

SheldonReservoir

GalvestonBay

BayportTerminal

Barbour’s CutTerminal

SmithersLake

ClearLake

George BushPark

LakeHouston

State Park

ArmandBayouPark

WilliamP. HobbyAirport

George BushIntercontinentalAirport

HARRISCOUNTY

LIBERTYCOUNTY

FORT BENDCOUNTY

MONTGOMERYCOUNTY

BRAZORIACOUNTY

GALVESTONCOUNTY

Downtown

EnergyCorridor

The GalleriaWestchase

Greenspoint

The Woodlands

TexasMedical Center

69

69

69

Westpark Tollway

Katy Frwy

Southwest F

rwy

Northwest FrwyNorth Frwy

Hardy Toll Road

East

ex F

rwy

North Loop

LoopSouth

Wes

t Loo

p

East

Loo

p

Sam Houston Tollway

Sam Houston Pkwy

ExxonMobilCorporate Headquarters

Pasadena Frwy

Baytown East Frwy

Sout

h Fr

wy

Fort

Pkwy

Gulf Frwy

Proposed

GrandPkwy

Proposed Grand Pkwy

Westheimer Rd

Beaumont Hwy

Ben

d

Grand Pkwy


Nor

th M

ain

Stre

et

West Baker Rd

East Freeway

John Martin Road

Garth Road

East Wallisville Road

Thompson Road


Holliday Fenoglio Fowler, L.P. acting by and through Holliday GP Corp a Texas licensed real estate broker (“HFF”).

©2017 HFF and HFFS (HFF Securities L.P.) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 22 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry. HFF together with its affiliate HFFS offer clients a fully integrated national capital markets platform including debt placement, investment sales, equity placement, advisory services, loan sales and commercial loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF.

HFF has been engaged by the owner of the property [properties] to market it [them] for sale. Information concerning the property [properties] described herein has been obtained from sources other than HFF and we make no representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all references to age, square footage, income, expenses and any other property specific information are approximate. Any opinions, assumptions, or estimates contained herein are projections only and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a buyer. Buyers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change.

INVESTMENT SALES

RYAN WESTSenior Managing DirectorT. (713) [email protected]

JOHN INDELLIAssociateT. (713) [email protected]

JOHNNY KIGHTReal Estate AnalystT. (713) [email protected]

FOR FINANCING INQUIRIES

MICHAEL JOHNSONAssociate DirectorT. (713) [email protected]

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