GRANITE190. Holliday Fenoglio Fowler, L.P. acting by and through Holliday GP Corp. a Texas licensed real estate broker ( HFF ) OFFERING SUMMARY

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1 GRANITE190 RICHARDSON TEXAS Holliday Fenoglio Fowler, L.P. acting by and through Holliday GP Corp. a Texas licensed real estate broker ( HFF ) OFFERING SUMMARY

2 HFF has been exclusively retained by the Owner to offer to qualified investors the opportunity to purchase Granite 190 Center, a 97% occupied, 307,468 square foot, two-building office complex located in the heart of the North Dallas suburb of Richardson. The Property is positioned within the Richardson / Plano office market, an absorption leader in the Dallas / Ft. Worth metroplex over the past 12 months, absorbing 1.4 million square feet. Richardson is a preferred location for corporate users and has benefited from recent major corporate relocations including State Farm Insurance, Raytheon and Kohl s due to its excellent access, diverse amenity base, well-educated labor pool and abundant residential options. Granite 190 Center provides investors the opportunity to acquire a Class A asset with stable, long-term cash flow at an attractive yield and discount to replacement cost. Although currently 97% leased, upside potential exists through increasing existing rental rates to market given that a tenant occupying 8.6% of the space is expected to vacate in September Additional upside exists as 17% of the project rolls in 2018 through PROPERTY OVERVIEW ADDRESS: 1301 & 1311 W. President George Bush Highway Richardson, TX RENTABLE AREA: Building 1: 153,744 square feet Building 2: 153,724 square feet Total: 307,468 square feet PERCENTAGE LEASED: 97% (going to 88% in September 2016) YEAR BUILT: 2001 / 2008 STORIES: 3 SITE: PARKING RATIO: acres 1,789 parking spaces 5.8 per 1,000 square feet 2

3 PROPERTY HIGHLIGHTS A RATED ANCHOR TENANT. United HealthCare Services, Inc., a wholly owned subsidiary of UnitedHealth Group Incorporated (NYSE: UNH), leases 64% of the Property and recently expanded and extended its lease through May As #14 in the Fortune 500 with $130.5 billion in 2014 revenues, UnitedHealth Group is the largest health and well-being company in the U.S. UnitedHealth Group has an A / Positive long-term credit rating from Standard & Poor s. STABLE CASH FLOW AND DISCOUNT TO REPLACEMENT COST. The project is 97% leased to a tenant base with an average remaining lease term of 6.4 years while also benefiting from over 65% of net operating income from an A / Positive rated tenant. Additionally, the Property is expected to trade at a discount to replacement cost with an attractive going-in yield. INSTITUTIONAL QUALITY ASSET. Institutionally maintained since initial completion, Granite 190 Center s buildings are three-story, Energy Star rated, Class A assets that enjoy unmatched visibility on President George Bush Turnpike. Built in 2001 and 2008, the buildings large, efficient and rectangular floor plates are designed to cater to tenants of all sizes. MAJOR TENANTS Tenant SF % of Property Lease Expiration Remaining Lease Term % Below Market Credit Rating UnitedHealthcare Services, Inc. 197, % Jun Years 3.2% A / Positive Parsons Services Corp 38, % Mar Years 12.5% Private Airbus DS Communications, Inc. 13, % Jan Years 16.7% Private Total 250, % 6.8 Years 5.3% 3

4 Legacy TENNYSON PKWY PLANO PKWY Arbor Hills Nature Preserve MIDWAY RD SPRING CREEK PKW COIT RD Prestonwood Country Club OHIO DR The Shops at Willow Bend Gleneagles Country Club PARK BLVD LOCATION RICHARDSON LOCATION. Richardson is the second largest employment center in the DFW area and its economy has been transformed in recent years from one dominated by telecommunications companies to a diversified mix of industries with a strong focus on healthcare and insurance. The area has benefited from a substantial number of corporate relocations by companies including State Farm (8,600 jobs), Kohl s (1,500 jobs), and Raytheon (1,700 jobs). Other major healthcare and insurance companies that have expanded or relocated to the submarket in recent years include United HealthCare Services, Blue Cross and Blue Shield, Nationwide Insurance, Progressive Corporation, and Liberty Mutual. RICHARDSON S TOP 15 EMPLOYERS Employer Employees Employer Employees State Farm Insurance 8,000 Raytheon 1,700 AT&T 5,000 Kohl s 1,500 Blue Cross and Blue Shield 3,100 Fossil, Inc. 1,400 The University of Texas at Dallas 2,674 Cisco Systems 1,200 Richardson ISD 2,500 Samsung Mobile 1,000 Verizon Business 2,250 Qorvo Semiconductor 1,000 Fujitsu 2,000 iqor 1,000 United HealthCare Services, Inc 1,700 4 International Business Park ROSEMEADE PKWY CARROLTON MARSH LN MIDWAY RD BELT LINE RD FARMERS BRANCH DALLAS NORTH TOLLWAY Addison Airport INWOOD RD KELLER SPRINGS RD ADDISON LYNDON B JOHNSON FREEWAY Preston Hollow Heritage Mano Plano Specia Hosp Market P Shopping C FRANKFORD RD Highland Springs Medical Center COIT RD ARAPAHO RD BELT LINE RD SPRIN S COIT RD

5 Y PLANO r & lty Future ital Heritage Creekside Mixed-Use laza Development enter WATERVIEW PKWY INDEPENDENCE PKWY G VALLEY RD PARKER RD CUSTER RD PLANO PKWY RENNER RD Northside at UTD Canyon Creek Country Club CAMPBELL RD LEGACY DR Collin Creek Mall PRESIDENT GEORGE BUSH TURNPIKE Future Palisades Mixed-Use Development RICHARDSON CENTENNIAL BLVD ALMA DR WALNUT ST Lake Highlands Telecom Corridor NORTH CENTRAL EXPRESSWAY Future BC Station Mixed-Use Development PLANO RD PLANO RD JUPITER RDJUPITER RD PARK BLVD Bush Turnpike Station West ARAPAHO RD GREENVILLE AVE Oak Point Park And Nature Preserve PLANO PKWY BUCKINGHAM RD SHILOH RD SHILOH RD WALNUT ST LOS RIO BLVD CITYLINE RENNER RD DEVELOPMENT GARLAND GARLAND AVE RICHARDSON TRANSFORMATION Historically a suburban community dominated by single-family housing and office development, Richardson is enjoying a transformation into a 24-hour location as a result of substantial mixed-use development and the growth of key economic drivers including: University of Texas at Dallas. University of Texas at Dallas (UTD) is a growing public research university in the University of Texas System boasting more National Merit Scholars than all other UT System institutions combined. Over the past seven years, UTD has been one of the fastest-growing universities in Texas, increasing enrollment from 14,500 to over 23,000 students. To accommodate the university s momentous growth, the campus infrastructure has dramatically transformed. Projects completed in fall of 2014 include the Pecan Hollowcompletion of the university s largest residence hall - as well as supporting Golf Course parking, dining, and recreational facilities - and the addition of the Naveen Jindal School of Management. Ongoing and recently announced projects include a new Bioengineering and Sciences Building and a $54 million mixeduse development project known as Northside at UT Dallas. The mix of retail and restaurants will provide Granite 190 Center s tenants convenient food and Breckinridge Park service options within walking distance from the Property. CityLine. The CityLine development now underway represents a transformation of the entire Richardson submarket. The 186-acre mixed-use development will consist of approximately 6 million square feet of 100% leased office space, two hotels, 4,000 multifamily residential units, more than 300,000 square feet of Firewheel Golf grocery, Park restaurant, entertainment and retail space, and three parks. State Farm and Raytheon will anchor the office component bringing an additional 10,000 jobs to the area. BC Station. BC Station Partners is developing 54 acres of land adjacent to the massive CityLine development. Upon completion, BC Station is expected to include more than 1.35 million square feet of office space, 100,000 square feet of retail, 1,250 multifamily units, and two hotels. The approximately $500 million, transit-oriented development will be immediately west of the CityLine project. Trammell Crow Residential has broken ground on the first phase of the project s multifamily and retail section. The first units are scheduled for delivery in late summer of Heritage Creekside. Rosewood Property Company is developing a highdensity, mixed-use project on 156-acres along President George Bush Turnpike, immediately north of the Property. Heritage Creekside will bring 1,300 apartment units, 200 residences, a 15-story hotel, and retail space. Construction will begin before the end of

6 OFFICE MARKET RICHARDSON / PLANO OFFICE MARKET. The Richardson / Plano office market is one of Dallas top suburban office markets, absorbing over 2.0 million square feet since first quarter 2013 due to several recent relocations including State Farm, Kohl s, Associa, and Inogen. With its accelerated absorption, the average occupancy in the market has increased to approximately 89%. Since first quarter 2013, the submarket s class A rental rates have increased 10.58% to $23.30 PSF, 5.76% above Granite 190 Center s in-place average rate. RICHARDSON/PLANO RENTAL RATES (CLASS A) $24.50 DFW ABSORPTION LEADERS ( YTD 2015) $24.00 $23.50 Richardson/Plano 27% $23.00 $22.50 $22.00 $21.50 $21.00 $20.50 Lewisville/Denton Stemmons Freeway East Dallas Uptown/Turtle Creek 2% 2% 3% South Fort Worth 4% 5% 7% Dallas CBD 10% Far North Dallas 23% Las Colinas 13% $ Q Q Q Q Q Q Q Q Mid-Cities Source: CoStar, YE 2014 Source: CoStar 6

7 DFW ECONOMIC OVERVIEW Dallas economy is not dependent upon any singular industry and is more diverse than the gateway markets of Boston, Los Angeles, San Francisco, and New York City. The January 2015 unemployment rate of 4.4% in the Dallas/Fort Worth area continues to be well below the national average of 6.1%. In 2014, DFW ranked first in both percentage growth (4.36%) and absolute growth with 144,920 new jobs. From 2013 to 2018, the metroplex is expected to rank first in both population and job growth, according to Moody s Economy.com. PROJECTED YoY POPULATION GROWTH PROJECTED YoY EMPLOYMENT GROWTH 2.50% 4.50% 4.00% 2.00% 1.50% 1.00% 0.50% 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% DFW Texas U.S. 0.00% DFW Texas U.S. Source: Moody s Source: Moody s 7

8 WER MOUND pevine ake CORINTH HIGHLAND VILLAGE APEVINE LESS LEWISVILLE COPPELL Dallas/Fort Worth International Airport Lewisville Lake North Lake CARROLLTON FARMERS BRANCH LAS COLINAS IRVING LITTLE ELM THE COLONY FRISCO Addison Airport ADDISON DALLAS LOVE FIELD AIRPORT DALLAS OFFER DATE To be announced DUNCANVILLE TURNPIK E GEORGE BUSH PRESIDENT 30 SAM RAYBURN TOLLWAY DALLAS NORTH TOLLWAY Preston Hollow University Park Highland Park Uptown CBD Lake Highlands PLANO RICHARDSON White Rock Lakewood Lake McKINNEY ALLEN GARLAND LU MURPHY SAC MESQUITE OAK CLIFF OFFERING GRAND PRAIRIE FORMAT 45 BALCH TERMS No asking price has been established for SPRINGS this offering. HUTCHINS ROWLETT SUNNYVALE ROCKWALL HEATH CEDAR HILL 45 If you have any questions or require additional information, please contact the individuals below. TODD SAVAGE Managing Director tsavage@hfflp.com FERRIS ELIZABETH MALONE Director emalone@hfflp.com CHRIS MIDLOTHIAN MURPHY Associate Director cmurphy@hfflp.com SEAGOVILLE FORNEY CRANDALL DE SOTO LANCASTER ADDITIONAL INFORMATION ANDREW LEVY Senior Managing Director alevy@hfflp.com STEVEN KIMOSH Analyst skimosh@hfflp.com For questions regarding debt structures on this property, please contact: BRIAN CARLTON Senior Managing Director bcarlton@hfflp.com Future Northside at UTD Mixed-Use Development Waterview Parkway Kansas City Southern (KCS) Railroad 20 FARMERSVILLE Campbell Road 30 ROYSE CITY KAUFMAN Dallas CBD 0.5 miles Ground Lease 140,000 VPD President George Bush Turnpike 2323 Victory Avenue, Suite 1200 Dallas, TX Telephone: Facsimile: hfflp.com Coit Road Future Centurion American Residential Community Future Heritage Creekside Mixed-Use Development 2015 HFF and HFFS 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 at twitter.com/hff. HFF has been engaged by the owner of the property to market it for sale. Information concerning the property 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.