E X E C U T I V E S U M M A R Y

ASHFORD ON THE BAYOU1001 S DAIRY ASHFORD, HOUSTON, TX 77077

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I N V E S T M E N T S U M M A R YPROPERTY 1001 S Dairy Ashford Rd

NET RENTABLE AREA 126,811

% LEASED 55.1%

YEAR BUILT: 1985

LOT SIZE 2.5 ACRES

PARKING 5.4 per 1,000 SF

IN - PL ACE NOI $639,852

PRO FORMA STABILIZED NOI $1,216,443

Ashford on the Bayou (the “Property”) offers investors the chance to acquire a 100 percent fee simple interest in a well located, Class B office building totaling 126,811 square feet nestled between the Energy Coorridor and Westchase submarkets in Houston, Texas. The Property is currently 55.1% occupied and presents investors with immediate value-add opportunity through the lease up of vacant suites in a newly renovated building. The Property is located along the east side of Dairy Ashford with magnificent views of Buffalo Bayou (did NOT flood during Hurricane Harvey) just south of Memorial Drive in close proximity to the intersection of Dairy Ashford and IH-10.

CONTACT INFORMATIONDAN MILLERSenior Managing DirectorT. 713.852.3576dmiller@hfflp.com

JOHNNY KIGHTReal Estate AnalystT. 713.212.6575jkight@hfflp.com

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EXCELLENT VALUE-ADD OPPORTUNITY WITH USER/OWNER OPPORTUNITYCurrently 55.1% leased, the Property provides significant upside through lease-up of the remaining 56,000 SF of vacant space. Ashford on the Bayou is well-positioned to benefit from leasing to smaller footprint tenants, which have been much more active than full-floor, larger tenants in recent quarters. Owner/Users also have the ability to move into the full 5th floor, which serves as the penthouse for the building. Along with the full floor, excellent building signage can be made available to any major tenant. As the Houston economy continues to grow and recover, leasing prospects are continuing to expand.

SIGNIFICANT DISCOUNT TO REPLACEMENT COSTAshford on the Bayou presents investors the opportunity to purchase Class-B office at a very attractive basis. With an estimated replacement cost of $200/SF - $250/SF, opportunity exists to stabilize cash flow while exiting well below the replacement cost threshold.

CORPORATE SETTING IN GREEN OASIS The property is nestled in the trees along beautiful Buffalo Bayou, which winds its way through the west side of Houston, furnishing beautiful views of the natural beauty of native Texas landscaping. The building is adjacent to Terry Hershey Park which provides more than 10 miles of trail from Barker Dam to Beltway 8. The park offers restrooms, exercise stations, a playground and places to picnic. The park is a unique amenity to the building providing lush green surroundings with a fitness component. The building is connected to the garage by a beautiful, tranquil bridge. There are very few corporate settings in Houston like at Ashford on the Bayou.

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PROXIMITY TO GLOBAL ENTERPRISE

Ashford on the Bayou is surrounded by international and domestic headquarters of the world’s largest energy companies such as Conoco Philips, Occidental Petroleum, BP North America and Shell Oil Company as well as other Fortune 500 users including Sysco Foods, Gulf States Toyota, DOW Chemical and Cardinal Healthcare. Proximity to these corporations provides the opportunity to cater the Property to the smaller tenants that provide various services to these global conglomerates.

BLAZING HOUSTON ECONOMYHouston is once again the strongest MSA in the country in terms of job growth in the USA. In the trialing 12 months from September 2018, Houston was #1 in the country in adding 128,700 jobs which is a 4.3% year over year growth rate, outpacing Texas’ 3.3% year over year growth rate. Houston also was #2 in the USA in population growth with 94,417 new residents from July 2016 to July 2017.

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STRATEGICALLY POSITIONED BETWEEN TWO PRESTIGIOUS SUBMARKETSThe Property is nestled between the Energy Corridor and Westchase submarket where it is surrounded by some of the most influential and important energy related companies in the world. The Property is less than a five-minute drive from exploration and production companies such as Conoco, Shell Oil, BP America, Citgo, Cabot Oil & Gas and Murphy Oil. Major energy service companies in the same area include Technip, the Wood Group, KBR, Schlumberger, Diamond Offshore, Transocean and McDermott International. The corporate synergy created between the submarkets is not easily replicated; thus, increasing the level of importance placed on the Property’s location for its current tenant base.

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ASHFORD ON THE BAYOU PROPERTY DESCRIPTION

Location: The building is located on the east side of Dairy Ashford be-tween Memorial Drive and Briar Forest.

Net Rentable Area 126,811

Land Size 2.5 acres

Year Built 1983

Occupancy 55.1%

Floors 5

Floor to Ceiling Height 9 feet

Typical Floor Plate 26,000 square feet

Parking Attached seven level steel frame parking garage, covered parking lot underneath the building and surface lot provide 467 covered and 223 uncovered parking spaces for a total parking ratio of 5.4 per 1,000 SF.

Exterior Façade: ¼” Blue reflective spandrel glass with rubber gaskets

Lobby Finish: The building features a granite walled lobby with granite floors and an expansive entry plaza.

Interior Finish: Standard tenant finish includes commercial grade carpeting, with vinyl or sheetrock painted walls and full height solid core doors. The ceiling consists of 2 x 2 lay in tiles with 2 x 4 fluo-rescent lighting and mini blinds. The primary floor covering in the tenant spaces and corridors is standard commercial grade carpet. Upper elevator lobbies feature granite floors and coffered ceilings

Restroom Facilities: Each floor contains one men’s and one women’s restroom with 2 x 2” ceramic tile flooring, vinyl wall coverings and 2 x 2” ce-ramic tile on the wet walls. The typical men’s rooms contain two sinks with granite vanities, two urinals and two stalls. The typi-cal women’s restrooms contain three sinks with granite counter-tops and three stalls. All restrooms have ADA upgrades.

Landscaping: The property is landscaped with mature plantings and seasonal flowers

Roof: The fully adhered TPO roof was installed in 2011 and has a 15 year warranty.

Electrical: The building receives an underground 3-phase feed from a pad-mounted transformer located on the southwest corner of the property. The main switchgear includes two 1600-amp pan-els for mechanical equipment, one 2500-amp panel and one 1000-amp panel that provide a feed to individual sub-panels located in the mechanical rooms on each floor. Copper wiring is used throughout the subject buildings.

P R O P E R T Y O V E R V I E W

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HVAC: Heating and cooling for the subject building is provided by two-200 ton reciprocating chillers manufactured by McQuay that are original to the building, and electric heating coils in five original Bohn air handling units (AHU) and two added Centralaire air handling units placed on floors four and five. The chilled water is distributed using two 15-hp pumps manu-factured by Baldor. One pump is original and one was recently replaced. Major components of the system have been repaired or replaced in recent years. The HVAC system is controlled by Johnson Controls. Additional split systems have been installed by tenants for special cooling purposes regarding computer systems. The split systems have roof-mounted condensers with air handlers in certain suites.

Elevators: Two Montgomery geared traction passenger elevators with 2,500 pound capacity each serve the building and one Mont-gomery hydraulic elevator serves the parking garage. All three elevators underwent a full modernization in 2009-2010.

Fire / Life Safety: The building is fully sprinklered with a wet-type system with risers in each stairwell and additional risers in the building core that accesses each floor. The system is pressurized by Harris County MUD water pressure, backed up with a 5,500 gallon water tank. The fire sprinkler system is complete with backflow prevention assemblies, and tamper switches and flow alarms. The system utilizes a Peerless 1,500-GPM single stage valve, two 10-hp pumps and a Sylvania Pump Controller.

Security: After-hours access is provided by a remotely monitored and ad-ministrated access control proximity card key system provided by Advantage Security.

Utility: The following utilities service the project:• Electricity – GDF SUEZ Energy Resources.• Sewer & Sewer – City of Houston• Telephone – ATT and Comcast

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SITE PLAN

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PA R K I N GG A R AG E

1 0 0 1D A I R Y

A S H F O R D

HFF L.P.9 Greenway Plaza

Suite 700Houston, TX 77046

T. 713.852.3500F. 713.852.3490

hfflp.com

This Offering Memorandum has been prepared by HFF for use by a limited number of recipients. All information contained herein has been obtained from sources other than HFF, and neither Owner nor HFF, nor their respective equity holders, officers, employees and agents makes any representations or warranties, expressed or implied, as to the accuracy or completeness of the information contained herein. Further, the Offering Memorandum does not constitute a representation that no change in the business or affairs of the property or the Owner has occurred since the date of the preparation of the Offering Memorandum. All analysis and verification of the information contained in the Offering Memorandum is solely the responsibility of the recipient. HFF and Owner and their respective officers, directors, employees, equity holders and agents expressly disclaim any and all liability that may be based upon or relate to the use of the information contained in this Offering Memorandum.Additional information and an opportunity to inspect the property will be made available upon written request to interested and qualified prospective investors.Owner and HFF each expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers regarding the property and/or terminate discussions with any entity at any time with or without notice. Owner shall have no legal commitment or obligations to any recipient reviewing this Offering Memorandum or making an offer to purchase the property unless and until such offer is approved by Owner, a written agreement for the purchase of the property has been fully executed, delivered and approved by Owner and its legal counsel, and any obligations set by Owner thereunder have been satisfied or waived.The recipient (“Recipient”) agrees that (a) the Offering Memorandum and its contents are confidential information, except for such information contained in the Offering Memorandum, which is a matter of public record, or is provided from sources available to the public (b) the Recipient, the Recipient’s employees, agents and consultants (collectively, the “need to know parties”) will hold and treat it in the strictest of confidence, and the Recipient and the need to know parties will not, directly or indirectly, disclose or permit anyone else to disclose its contents to any other person, firm, or entity without the prior written authorization of HFF and the Owner, and (c) the Recipient and the need to know parties will not use or permit to be used this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Owner or HFF or for any purpose other than use in considering whether to purchase the property. The Recipient and the need to know parties agree to keep this Offering Memorandum and all confidential information contained herein permanently confidential and further agree to use this Offering Memorandum for the purpose set forth above. If the Recipient has no interest in the property, or if in the future the Recipient or owner discontinue such negotiations, the Recipient will return this Offering Memorandum to HFF. 11.18

CONTACT INFORMATIONDAN MILLERSenior Managing DirectorT. 713.852.3576dmiller@hfflp.com

JOHNNY KIGHTReal Estate AnalystT. 713.212.6575jkight@hfflp.com