PARTIALLY CYPRESS CREEK MEDICAL PLAZA LEASED 17506 …€¦ · Cypress Creek Medical Plaza is conveniently located in a well established part of Houston on the north side of the city

CYPRESS CREEK MEDICAL PLAZA17506 RED OAK DRIVE

HOUSTON, TEXAS 77090FORMER LTAC

PARTIALLY LEASED

SCOTT CARTERFIRST VICE PRESIDENT

Tel: 713.577.1882

[email protected]

STAN YOUNGPRINCIPAL

Tel: 713.467.9333

[email protected]

FOR MORE INFORMATION PLEASE CONTACT:

© 2018 CBRE, Inc. All Rights Reserved.

www.CypressCreekMedicalPlaza.com

2

TABLE OF CONTENTS:INVESTMENT HIGHLIGHTS

PROPERTY OVERVIEW

LOCATION OVERVIEW

FINANCIAL ANALYSIS

DISCLOSURES

01

02

03

04

04

10

20

28

3405

3

INVESTMENT HIGHLIGHTSOPPORTUNITY

CBRE and Medical Real Estate, Inc. has been retained on an exclusive basis by Redoak Drive, LLC and is pleased to offer for sale a former long term acute care facility located at 17506 Red Oak Dr in Houston, TX. A portion of the building is leased to Recovery Innovations on a 10-year term. Recovery Innovations built-out a portion of the second floor as a behavioral health center, but never occupied the space. The building was previously licensed for 80 beds and has the ability to add an additional 58 beds. The deed restricts the property from operating inpatient rehabilitation hospital services, but the property would be a great use for long-term acute care, behavioral health, ambulatory surgical center, home health, psychiatric hospital, hospice, drug & alcohol center, skilled nursing facility, senior housing, and more!

10 10

10

10

10

69

69

69

69

69

45

45

45

45

610

610

290

290

99

99

99

6

6

99

99

288

288

35

35

8

8

3

225

8

6

249

249

Cypress Creek Medical Plaza

01

The Asking Price for Cypress Creek Medical Plaza is $9 Million. Please see the Process & Offer Instructions to schedule a tour or submit an offer.

4

INVESTMENT HIGHLIGHTSINVESTMENT HIGHLIGHTS

PROCESS & OFFER INSTRUCTIONS

Distribute Offering Memorandum. Confidential Offering Memorandum distributed to interested parties that have executed a Confidentiality Agreement

Marketing Period. During the marketing period, interested parties are encouraged to: (i) review materials posted to the “Deal Room” (ii) schedule showings / market tours with exclusive listing brokers (iii) dialogue with exclusive listing brokers to clarify any information provided in the offering memorandum.

All site visits will be made by appointment only. Inquiries for tours, as well as requests for additional information, should bemade through the Houston CBRE Office, by contacting Scott Carter, or through Medical Real Estate, Inc., by contacting Stan Young.

Offers Due. Offers are due in writing and should include the following:Terms • Purchase Price• Earnest Money Deposit • Inspection Period• Closing PeriodInvestor Information • Description of Purchaser’s entity structure and capital source• Details on Purchaser’s debt (if any) & equity structure • Please provide details on your experience in owning healthcare facilities• Description of your due diligence process• Description of any contingencies, caveats, and approvals of which the Ownership should be aware in evaluating your offer Condition of Sale• The property is being offered in their “as is” condition. Purchaser shall confirm by Purchaser’s own due diligence the condition and suitability

of the property, without any reliance upon information provided herein. Property to be sold with existing ground lease terms and will not be subject to modification.

Please submit one electronic copy of the offer to Scott Carter at [email protected] and Stan Young at [email protected].

5

PROPERTY OVERVIEW17506 RED OAK DRIVE, HOUSTON , TX 77090

1

NET RENTABLE SF:

BUILDING STORIES:

NUMBER OF BUILDINGS:

YEAR COMPLETED:

BUILDINGRENOVATIONS:

CURRENTOCCUPANCY:

PARKING RATIO:

SURFACE SPACES: ACRES: BED

CAPACITY:

83,998 TWO (2) ONE (1) 1989 2007/2016 31% 1.8/1,000 155 4.82 ACRES 80 BEDS

02

6

PROPERTY OVERVIEW

17506 RED OAK DR, HOUSTON, TX 77090

STRUCTURE/CONSTRUCTION Fire resistan steel frame on a reinforced concrete slab with reinforced footings.

PARKING 155 Asphalt Parking Spaces

SPRINKLER TYPE Wet

BUILDING EXTERIOR Glass and masonry

WALL HEIGHT 12’ to 14’

HVAC Central / Forced and Hot Air

ELEVATORS Three (3) Hydraulic Passenger (all gurney accessible)

PORT COCHERE One located on the south side of the property

RENOVATIONS2007 - new roof, two new roof top packaged HVAC units, sump pumps.Tenant placed three (3) HVAC units above their space.Owner spent a total of $1 million in 2016 on updating the lobby, exterior of the building, landscaping, electric service and switchgear, and camera system.

DIETARY Full size kitchen that will require updating.

7

PROPERTY OVERVIEW

17506 RED OAK DR - PROPERTY TAXES

The property is in Harris County. In Texas, an appraisal district in each county sets the value of taxable property and determinesexemptions status, if applicable. Local taxing authorities, which include county, cities, school districts, and special districts (e.g.municipal utility districts, rural fire protection districts, junior college districts and others), adopt their own tax rates, whichdetermine the amounts of taxes for each property.

The Texas Property Tax Code provides that all taxable property is to be appraised at its full market value as of January 1st ofeach year; however, appraised values are, in fact, often well below actual market values. One hundred percent of theappraised value is subject to taxation. The 2018 appraised value for the property was $3,349,497.

The property is within the following taxing authorities:

TAXING AUTHORITY 2017 TAX RATE

Harris County 0.418010

Harris County Flood 0.028310

Port of Houston Authority 0.012560

Harris County Hospital District 0.171100

Harris County Education Dept. 0.005195

Lone Star College System 0.107800

Spring ISD 1.510000

HC Emergency Service District 28 0.100000

HC Emergency Service Distric 11 0.039040

8

PROPERTY OVERVIEW

17506 RED OAK DR - PROPERTY PHOTOGRAPHS

9

PROPERTY OVERVIEW

17506 RED OAK DR - AERIAL

10

PROPERTY OVERVIEW

17506 RED OAK DR - SITE PLAN

11

PROPERTY OVERVIEW

17506 RED OAK DR - LEVEL 1 FLOOR PLAN

12

PROPERTY OVERVIEW

17506 RED OAK DR - LEVEL 2 FLOOR PLAN

13

PROPERTY OVERVIEW

LOCATION OVERVIEW03

SUBMARKET OVERVIEW

17506 RED OAK DR

AREA DEMOGRAPHICS 2000 2010 2018 2023PROJECTION ANNUAL GROWTH RATE 2010-2018 ANNUAL GROWTH RATE 2018-2023

1 - Mile Area Radius 13,901 14,918 16,904 18,258 1.53% 1.55%

3 - Mile Area Radius 66,023 91,974 111,216 122,240 2.33% 1.91%

5 - Mile Area Radius 171,067 249,538 303,180 332,959 2.39% 1.89%

10 - Mile Area Radius 506,467 732,572 893,979 984,472 2.44% 1.95%

Houston MSA

AREA DEMOGRAPHICS 2000 2010 2018 2023 PROJECTION ANNUAL GROWTH RATE 2000-2018 ANNUAL GROWTH RATE 2018-2023

Houston/Woodlands/Sugarland

4,693,161 5,920,416 7,050,107 7,792,464 2.14% 2.02%

Cypress Creek Medical Plaza is conveniently located in a well established part of Houston on the north side of the city near FM 1960 (Cypress Creek Parkway) and Interstate 45. It is located just 20 minutes south of The Woodlands and near Houston Northwest Medical Center. It is less than 10 miles south of the 3 million square foot ExxonMobil facility that is home to 10,000 employees.

14

LOCATION OVERVIEW

OUR ECONOMY

OVERALL EMPLOYMENT IN RECOVERYRecent job revisions show that Houston never posted negative job growth during the recession indicating a diversifying economy that is increasingly resilient to oil shocks.

$1.5BIN RENEWABLE

ENERGY INVESTMENT SINCE 2014

25%OF ALL OIL & GAS

EXTRACTION JOBS IN THE

U.S. ARE LOCATED IN

HOUSTON

25% OF THE NATIONS REFINING CAPACITY IS ALONG THE TEXAS GULF COAST WTH A REFINING CAPACITY OF 4.8 MILLION BARRELS/DAY

OUR EMPLOYMENT

RANKED 1ST

IN FOREIGN TONNAGE, IMPORTS, EXPORT TONNAGE, & BREAKBULK AMONG US PORTS

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

3.5

3.0

2.5

2.0

1.5

160

140

120

100

80

60

40

20

0


RECESSIONS:

EMPLOYMENT:

OIL PRICE:

Sources: Bureau of Labor Statistics, EIA, June 2018.

JOBS (MILLIONS) WTI ($/bbl)

OUR ECONOMYPORT OF HOUSTON

LARGEST TEXAS PORT

HANDLING 68% OF US GULF COAST CONTAINER TRAFFIC & 96% OF TEXAS CONTAINER TRAFFIC

LARGEST GULF COAST CONTAINER PORT

ENERGY SECTOR

4,800+ENERGY RELATED

ESTABLISHMENTS LOCATED WITHIN THE GREATER HOUSTON AREA

Source: Greater Houston Partnership, May 2018.Source: Greater Houston Partnership, April 2018.

103K M I L E S

HOUSTON COMPANIES OVER CONTROL OF U.S. PIPELINES

FOUR HOUSTON REGION SEAPORTSHOUSTON, TEXAS CITY, FREEPORT, GALVESTON

194.3 MILLION METRIC TONS

IN TRADE PER ANNUM

ADDED 79,200 JOBS

FROM MAY 17’ TO MAY 18’

CBRE | WHYHOUSTON? 4 Q218

$1.5BIN RENEWABLE

ENERGY INVESTMENT SINCE 2014

25%OF ALL OIL & GAS

EXTRACTION JOBS IN THE

U.S. ARE LOCATED IN

HOUSTON

25% OF THE NATIONS REFINING CAPACITY IS ALONG THE TEXAS GULF COAST WTH A REFINING CAPACITY OF 4.8 MILLION BARRELS/DAY

OUR EMPLOYMENT

RANKED 1ST

IN FOREIGN TONNAGE, IMPORTS, EXPORT TONNAGE, & BREAKBULK AMONG US PORTS

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

3.5

3.0

2.5

2.0

1.5

160

140

120

100

80

60

40

20

0


RECESSIONS:

EMPLOYMENT:

OIL PRICE:

Sources: Bureau of Labor Statistics, EIA, June 2018.

JOBS (MILLIONS) WTI ($/bbl)

OUR ECONOMYPORT OF HOUSTON

LARGEST TEXAS PORT

HANDLING 68% OF US GULF COAST CONTAINER TRAFFIC & 96% OF TEXAS CONTAINER TRAFFIC

LARGEST GULF COAST CONTAINER PORT

ENERGY SECTOR

4,800+ENERGY RELATED

ESTABLISHMENTS LOCATED WITHIN THE GREATER HOUSTON AREA

Source: Greater Houston Partnership, May 2018.Source: Greater Houston Partnership, April 2018.

103K M I L E S

HOUSTON COMPANIES OVER CONTROL OF U.S. PIPELINES

FOUR HOUSTON REGION SEAPORTSHOUSTON, TEXAS CITY, FREEPORT, GALVESTON

194.3 MILLION METRIC TONS

IN TRADE PER ANNUM

ADDED 79,200 JOBS

FROM MAY 17’ TO MAY 18’


HOUSTON OVERVIEW

LOCATION OVERVIEW

TEXAS MEDICAL CENTER HOUSTON AIRPORT SYSTEM NASA/JOHNSON SPACE CENTER

HOUSTON ECONOMY HAS INCREASINGLY DIVERSIFIED

Source: U.S. Bureau of Labor Statistics, March 2018

45,500

243,000

JOBS FORECASTED FOR 2018

FORECASTED BY 2020

$478.6 BILLIONEXPECTED TO

DOUBLE BY 2040

CURRENT GDP IN 2016

Source: Greater Houston Partnership, Perryman Group,

June 2016.

Source: Institute for Regional Forecasting, Moody’s Analytics, May 2018.

MINING & LOGGING

MANUFACTURING

INFORMATION

PROFESSIONAL & BUSINESS SERVICES

LEISURE & HOSPITALITY

OTHER

CONSTRUCTION

TRADE, TRANSPORTATION & UTILITIES

FINANCIAL ACTIVITIES

EDUCATION & HEALTH SERVICES

GOVERNMENT

50MDEVELOPED SQ.FT

HOUSTON’S GDP IS EXPECTED TO

DOUBLE BY 2040

Sources: Greater Houston Partnership, Perryman Group, Summer 2016

IN 2016$478.6BCURRENT GDP

54.4MPASSENGERS IN 2017

$4.5B TOTAL ECONOMIC IMPACT ANNUALLY

106,000+EMPLOYEES

182NON-STOP

DESTINATIONS TO 37 COUNTRIES

HOUSTON’S ECONOMY HAS INCREASINGLY DIVERSIFIED

TEXAS MEDICAL CENTER

$3BIN CONSTRUCTION

PROJECTS UNDERWAY

THE LARGEST MEDICAL CENTER IN THE WORLD

10MPATIENT VISITS

PER YEAR

HOUSTON AIRPORT SYSTEM

8TH

LARGESTBUSINESS DISTRICT

IN THE US

Source: The Texas Medical Center, July 2018.

Sources: Institute for Regional Forecasting, Moody’s Analytics, May 2018.

Sources: Greater Houston Partnership, HAS, May 2018.

AEROSPACE/AVIATION

INCLUDE: BOEING, LOCKHEED MARTIN, BROWN & ROOT AND JOHNSON ENGINEERING

100+ MAJOR EMPLOYERS

Source: Greater Houston Partnership, July 2017.

LICENSED SPACEPORTS

ONE OF THE NATION’S



GOVERNMENT



MANUFACTURING

CONSTRUCTION


MINING & LOGGING

INFORMATION

OTHER

6 DOMESTIC & 20 INTERNATIONAL CARRIERS

GEORGE BUSH INTERCONTINENTAL (IAH) AIRPORT


WILLIAM P. HOBBY AIRPORT

45,500 JOBS FORECASTED FOR 2018.

243,000 JOBS FORECASTED BY 2020.

20.8%

16%

12.5%

13.5%

10.3%

Sources: Bureau of Labor Statistics, EIA, March 2018

TMC’S CAMPUS ENCOMPASSES

CBREQ218 5 WHYHOUSTON? | CBRE

50MDEVELOPED SQ.FT


DOUBLE BY 2040





106,000+EMPLOYEES

182NON-STOP




$3BIN CONSTRUCTION

PROJECTS UNDERWAY


10MPATIENT VISITS

PER YEAR


8TH


IN THE US




AEROSPACE/AVIATION




LICENSED SPACEPORTS




GOVERNMENT



MANUFACTURING

CONSTRUCTION


MINING & LOGGING

INFORMATION

OTHER







20.8%

16%

12.5%

13.5%

10.3%



CBREQ218 5 WHYHOUSTON? | CBRE

50MDEVELOPED SQ.FT


DOUBLE BY 2040





106,000+EMPLOYEES

182NON-STOP




$3BIN CONSTRUCTION

PROJECTS UNDERWAY


10MPATIENT VISITS

PER YEAR


8TH


IN THE US




AEROSPACE/AVIATION




LICENSED SPACEPORTS




GOVERNMENT



MANUFACTURING

CONSTRUCTION


MINING & LOGGING

INFORMATION

OTHER







20.8%

16%

12.5%

13.5%

10.3%



CBREQ218 5 WHYHOUSTON? | CBRE16

LOCATION OVERVIEW

HOUSING MARKET

Source: Houston Association of Realtors, January 2017.

47,094SINGLE FAMILY

HOME SALES IN 2018 YTD

$316,463AVERAGE

HOME PRICEJuly 2018

OUR PEOPLECOST OF LIVING INDEX

NEW YORK

SAN FRANCISCO

BOSTON

SEATTLE

SAN DIEGO

LOS ANGELES

PHILADELPHIA

CHICAGO

DALLAS

HOUSTON

ATLANTA

TAMPA

PHOENIX

ST. LOUIS

-20 -0 20 40 60 80 100 120

Sources: Greater Houston Partnership, Council for Community and Economic Research (C2ER), ESRI, July 2017.

AVG. HOUSEHOLD INCOME% ABOVE/BELOW US AVG COST OF LIVING %/BELOW US AVG

HOUSING MARKET

Source: Houston Association of Realtors, July 2018.

47,094SINGLE FAMILY HOME SALESIN 2018 YTD

HOUSEHOLD INCOME AND COST OF LIVING % BELOW/ABOVE U.S. AVERAGE

4.1 MONTHSHOUSING SUPPLY

$316,463AVERAGE HOME PRICE

HOUSTONCOST OF LIVING

WHILE THE AVERAGE INCOME IS ABOVE

IS BELOW THENATIONAL AVERAGE

HOUSTON COL IS BELOW NATIONAL AVERAGE, WHILE AVERAGE INCOME IS

ABOVE NATIONAL AVERAGE


OUR PEOPLECOST OF LIVING INDEX

NEW YORK

SAN FRANCISCO

BOSTON

SEATTLE

SAN DIEGO

LOS ANGELES

PHILADELPHIA

CHICAGO

DALLAS

HOUSTON

ATLANTA

TAMPA

PHOENIX

ST. LOUIS

-20 -0 20 40 60 80 100 120

Sources: Greater Houston Partnership, Council for Community and Economic Research (C2ER), ESRI, July 2017.

AVG. HOUSEHOLD INCOME% ABOVE/BELOW US AVG COST OF LIVING %/BELOW US AVG

HOUSING MARKET

Source: Houston Association of Realtors, July 2018.

47,094SINGLE FAMILY HOME SALESIN 2018 YTD

HOUSEHOLD INCOME AND COST OF LIVING % BELOW/ABOVE U.S. AVERAGE

4.1 MONTHSHOUSING SUPPLY

$316,463AVERAGE HOME PRICE

HOUSTONCOST OF LIVING

WHILE THE AVERAGE INCOME IS ABOVE

IS BELOW THENATIONAL AVERAGE

HOUSTON COL IS BELOW NATIONAL AVERAGE, WHILE AVERAGE INCOME IS

ABOVE NATIONAL AVERAGE


4.1 MONTHS OFHOUSING SUPPLY

17

LOCATION OVERVIEW

GLOBAL PRESENCE

DEMOGRAPHICS

37% Anglo

36% Hispanic

17% Black

8% Asian

1.5% Other

DIVERSITYHOUSTON MIRRORS THE NATIONAL ETHNIC MAKE UP 6.9

MILLION RESIDENTS

94,417

HOUSTON HAD THE SECOND LARGEST POPULATION GAIN OF

ANY US METRO AREA IN 2017.

RESIDENTS ADDED FROM 2016 - 2017

POPULATION TRENDS

Source: U.S. Census Bureau, March 2018

91FOREIGN

CONSULATE

20FOREIGNBANKS

1,000+FOREIGN-OWNED

FIRMS

145LANGUAGES

SPOKEN

Source: Greater Houston Partnership, May 2018

ONE IN FOURHOUSTONIANS ARE FOREIGN BORN

Source: Greater Houston Partnership, June 2016.

18

LOCATION OVERVIEW

870+PARK 128

MILES OFBIKE TRAIL

FOUR MAJOR PERFORMING ARTS

COMPANIES IN ALL

-DRAMA, BALLET, OPERA AND ORCHESTRA

EDUCATION

50COLLEGES, UNIVERSITIES

AND TECHNICAL SCHOOLS

437,000STUDENTS

CULINARY CAPITAL OF TEXAS

10,000+RESTAURANTS

70CUISINES

643BARS

Source: Greater Houston Partnership, May 2017.

LOCAL ATTRACTIONHOUSTON LIVESTOCK SHOW AND RODEO

$480 MILLION

ANNUAL AGGREGATE GROSS SALES INCREASED BY

Source: Houston Livestock Show and Rodeo, March 2018

ATTRACTING OVER 2.4 MILLION VISITORS IN 2018.

IT IS ONE OF THE BIGGEST IN THE COUNTRY

SPORTSTEXANS • DYNAMO • ASTROS • ROCKETS • DASH

THE CITIES 4 STADIUMS CAN HOLD OVER150,000 FANS COLLECTIVELY

QUALITY OF LIFE

#1 IN THE PARK ACREAGE AMONG LARGE U.S. CITIES 53,000 ACRES OF PARKLANDSource: Greater Houston Partnership, May 2017.

19

LOCATION OVERVIEW

04

LEASE OVERVIEW

Tenant: Recovery Innovations, Inc.

Premises: 2nd floor - 26,395 rentable square feet Use: Psychiatric care hospital and medical care Term: 124 month term, commecing July 1, 2014 and expiring 10/31/2024

Base Rent: $21.25/sf Year 1 ($46,741.15/month), increasing 2.5% annually Abatement: Base Rent and Additional Rent abated for the first 4 months of the Term Additional Rent: Tenant’s proportionate share of CAM charges, Landlord’s insurance, and Taxes

FINANCIAL ANALYSIS

20

FINANCIAL ANALYSIS

17506 RED OAK DR - 2018 ACTUAL

INCOME

Other Income $181,707.72 Rental Income $611,571.48TOTAL INCOME $793,279.20

OPERATING EXPENSES Elevator $ 1,028.38Exterminating $ 1,169.16Insurance $ 50,901.30Office $ 1,181.54Professional Fees $ 1,000.00 Real Estate Taxes $ 85,664.24 Repairs & Maintenance $ 45,627.40 Rubbish Removal $ 3,163.86 Utilities $ 91,071.26

TOTAL OPERATING EXPENSES $280,807.14 NET OPERATING INCOME $512,472.06 *2018 Budget is based on Current Occupancy of 31.42%

You are solely responsible for independently verifying the information in this Memorandum. ANY RELIANCE ON IT IS SOLELY AT YOUR OWN RISK.

21

AFFILIATED BUSINESS DISCLOSURES

CBRE, Inc. operates within a global family of companies with many subsidiaries and related entities (each an “Affiliate”) engaging in a broad range of commercial real estate businesses including, but not limited to, brokerage services, property and facilities management, valuation, investment fund management and development. Attimes different Affiliates, including CBRE Global Investors, Inc. or Trammell Crow Company, may have or represent clients who have competing interests in the same transaction. For example, Affiliates or their clients may have or express an interest in theproperty described in this Memorandum (the “Property”), and may be the successful bidder for the Property. Your receipt of this Memorandum constitutes your acknowledgement of that possibility and your agreement that neither CBRE, Inc. nor any Affiliate has an obligation to disclose to you such Affiliates’ interest or involvement in the sale or purchase of the Property. In all instances, however, CBRE, Inc. and its Affiliates will act in the best interest of their respective client(s), at arms’ length, not in concert, or in a manner detrimental to any third party. CBRE, Inc. and its Affiliates will conduct their respective businesses in a manner consistent with the law and all fiduciary duties owed to their respective client(s). received by it solely for the Purpose and for no other purpose whatsoever.

Your receipt of this Memorandum constitutes your acknowledgement that (i) it is a confidential Memorandum solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property, (ii) you willhold it in the strictest confidence, (iii) you will not disclose it or its contents to any third party without the prior written authorization of the owner of the Property (“Owner”) or CBRE, Inc., and (iv) you will not use any part of this Memorandum in any manner detrimental to the Owner or CBRE, Inc.If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return it to CBRE, Inc.

CONFIDENTIALITY AGREEMENT

05DISCLOSURES

22

This Memorandum contains select information pertaining to the Property and the Owner, and does not purport to be all-inclusive or contain all or part of the information which prospective investors may require to evaluate a purchase of the Property. The information contained in this Memorandum has been obtained from sourcesbelieved to be reliable, but has not been verified for accuracy, completeness, or fitness for any particular purpose. All information is presented “as is” without representation or warranty of any kind. Such information includes estimates based on forward-looking assumptions relating to the general economy, market conditions, competition and other factors which are subject to uncertainty and may not represent the current or future performance of the Property. All references to acreages, square footages, and other measurements are approximations. This Memorandum describes certain documents, including leases and other materials, in summary form. These summaries may not be complete nor accurate descriptions of the full

agreements referenced. Additional information and an opportunity to inspect the Property may be made available to qualified prospective purchasers. You are advised to independently verify the accuracy and completeness of all summaries and information contained herein, to consult with independent legal and financial advisors, and carefully investigate the economics of this transaction and Property’s suitability for your needs. ANY RELIANCE ON THE CONTENT OF THIS MEMORANDUM IS SOLELY AT YOUR OWN RISK.The Owner expressly reservesthe right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or to terminate discussions at any time with or without notice to you. All offers, counteroffers, and negotiations shall be non-bindingand neither CBRE, Inc. nor the Owner shall have any legal commitment or obligation except as set forth in a fully executed, definitive purchase and sale agreement delivered by the Owner.

DISCLAIMER

23

NOTICE TO OWNERS, BUYERS AND TENANTS REGARDING HAZARDOUS WASTES OR SUBSTANCES AND UNDERGROUND STORAGE TANKSComprehensive federal and state laws and regulations have been enacted in the last few years in an effort to develop controls over the use, storage, handling, clean-up, removal and disposal of hazardous wastes or substances. Some of these laws and regulations, such as, for example, so-called “Superfund Act,” provide for broad liability schemes wherein an owner, tenant or other user of the property may be liable for clean-up costs and damages regardless of fault. Other laws and regulations set standards for the handling of asbestos or establish requirements for the use, modification, abandonment, or closing of underground storage tanks.

It is not practical or possible to list all such laws and regulations in this Notice. Therefore, owners, buyers and tenants are urged to consult legal counsel to determine their respective rights and liabilities with respect to the issues described in the Notice as well as other aspects of the proposed transaction. If hazardous wastes or substances have been, or are going to be used, stored, handled or disposed of on the property if the property has or may have underground storage tanks, it is essential permits and approvals have been or may be required, if any, the estimated costs and expenses associated with the use, storage, handling, clean-up, removal or disposal of the hazardous wastes or substances and what contractual provisions and protections are necessary or desirable. It may also be important to obtain expert assistance for site investigations and building inspections. The past uses of the property may provide valuable information as to the likelihood of hazardous wastes or substances, or underground storage tanks being on the property.

Although CBRE, Inc. will disclose any knowledge it actually possesses with respect to the existence of hazardous wastes or substances, or underground

storage tanks on the property, CBRE, Inc. has not made investigations or obtained reports regarding the subject matter of this Notice, except as may be described in a separate written document signed by CBRE, Inc., CBRE, Inc. makes no representations regarding the existence or nonexistence of hazardous wastes or substances, or underground storage tanks on the property. You should contact a professional, such as a civil engineer, geologists, industrial hygienist or other persons with experience in these matters to advise you concerning the property.

The term “hazardous wastes or substance” is used in this Notice in its very broadest sense and includes, but is not limited to, petroleum base products, paints and solvents, lead, cyanide, DDT, printing inks, acids, pesticides, ammonium compounds, asbestos, PCB’s and other chemical products. Hazardous wastes or substances and underground storage tanks may be present on all types of real property. This Notice is therefore meant to apply any transaction involving any type of real property, whether improved or unimproved.

Agreed and accepted this day of ________________, 20_____.

By: ________________________________

Title: ________________________________

24

OFFER GUIDELINES

Offers should be submitted electronically to Scott Carter at [email protected] or Stan Young at [email protected] and include the following:

Comprehensive federal and state laws and regulations have been enacted in the last few years in an effort to develop controls over the use, storage, handling, clean-up, removal and disposal of hazardous wastes or substances. Some of these laws and regulations, such as, for example, so-called “Superfund Act,” provide for broad liability schemes wherein an owner, tenant or other user of the property may be liable for clean-up costs and damages regardless of fault. Other laws and regulations set standards for the handling of asbestos or establish requirements for the use, modification, abandonment, or closing of underground storage tanks.

It is not practical or possible to list all such laws and regulations in this Notice. Therefore, owners, buyers and tenants are urged to consult legal counsel to determine their respective rights and liabilities with respect to the issues described in the Notice as well as other aspects of the proposed transaction. If hazardous wastes or substances have been, or are going to be used, stored, handled or disposed of on the property if the property has or may have underground storage tanks, it is essential permits and approvals have been or may be required, if any, the estimated costs and expenses associated with the use, storage, handling, clean-up, removal or disposal of the hazardous wastes or substances and what contractual provisions and protections are necessary or desirable. It may also be important to obtain expert assistance for site investigations and building inspections. The past uses of the property may provide valuable information as to the likelihood of hazardous wastes or substances, or underground storage tanks being on the property.

Although CBRE, Inc. will disclose any knowledge it actually possesses with respect to the existence of hazardous wastes or substances, or underground storage tanks on the property, CBRE, Inc. has not made investigations or obtained reports regarding the subject matter of this Notice, except as may be described in a separate written document signed by CBRE, Inc., CBRE, Inc. makes no representations regarding the existence or nonexistence of hazardous wastes or substances, or underground storage tanks on the property. You should contact a professional, such as a civil engineer, geologists, industrial hygienist or other persons with experience in these matters to advise you concerning the property.

The term “hazardous wastes or substance” is used in this Notice in its very broadest sense and includes, but is not limited to, petroleum base products, paints and solvents, lead, cyanide, DDT, printing inks, acids, pesticides, ammonium compounds, asbestos, PCB’s and other chemical products. Hazardous wastes or substances and underground storage tanks may be present on all types of real property. This Notice is therefore meant to apply any transaction involving any type of real property, whether improved or unimproved.

25

FOR MORE INFORMATION PLEASE CONTACT:

www.CypressCreekMedicalPlaza.com

SCOTT CARTERFIRST VICE PRESIDENT

Tel: 713.577.1882

[email protected]

STAN YOUNGPRINCIPAL

Tel: 713.467.9333

[email protected]

Documents

PARTIALLY CYPRESS CREEK MEDICAL PLAZA LEASED 17506 …€¦ · Cypress Creek Medical Plaza is conveniently located in a well established part of Houston on the north side of the city