675 675

$3.5 M | 7.65 % CAPOFFERING MEMORANDUM

MARVIN A. SMITH KILGORE TX 75662

CONFIDENTIALITY & CONDITIONS

This Memorandum does not constitute a representation that the business or affairs of the Property or Seller since the date of preparation of this Memorandum have remained the same. Analysis and verification of the information contained in this Memorandum are solely the responsibility of the prospective purchaser.

Additional information and an opportunity to inspect the Property will be made available upon written request of interested and qualified prospective purchas-ers. Seller and Agent 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 party at any time with or without notice. Seller reserves the right to change the timing and procedures for the Offering process at any time in Seller’s sole discretion. Seller shall have no legal commitment or obligations to any party reviewing this Memorandum, or making an offer to purchase the Property, unless and until such offer is approved by Seller, and a written agreement for the purchase of the Property has been fully executed and delivered by Seller and the Purchaser thereunder.

This Memorandum and the contents, except such information which is a matter of public record or is provided in sources available to the public, are of a confiden-tial nature. By accepting this Memorandum, you agree that you will hold and treat it in the strictest confidence, that you will not forward, photocopy or duplicate it, that you will not disclose this Memorandum or any of the contents to any other entity (except to outside advisors retained by you, if necessary, for your deter-mination of whether or not to make a proposal and from whom you have obtained an agreement of confidentiality) without the prior written authorization of Seller or Agent, and that you will not use this Memorandum or any of the contents in any fashion or manner detrimental to the interest of Seller or Agent.

INVESTMENT OVERVIEW

It is Newmark Knight Franks’s pleasure to present the following investment opportunity to purchase a two-building property consisting of recently constructed, state of the art industrial facilities currently owned by Napali Two LLC, and fully leased by CSI Compressco.

CSI Compressco is a provider of compression services and equipment for natural gas and oil production, gathering, transportation, processing, and storage. CSI Compressco’s compression and related services business includes a fleet of over 6,000 compressor packages providing in excess of 1.0 million in aggre-gate horsepower, utilizing a full spectrum of low-, medium-, and high-horsepower engines. CSI Compressco’s equipment and parts sales business includes the fabrication and sale of standard compressor packages, custom-designed compressor packages, and oilfield fluid pump systems designed and fabricated primarily at our facilities in Midland, Texas and Oklahoma City, Oklahoma, as well as the sale of compressor package parts and components manufactured by third-party suppliers.

CSI Compressco’s aftermarket services business provides compressor package reconfiguration and maintenance services. CSI Compressco’s customers comprise a broad base of natural gas and oil exploration and production, mid-stream, transmission, and storage companies operating throughout many of the onshore producing regions of the United States as well as in a number of foreign countries, including Mexico, Canada, and Argentina. CSI Compressco is man-aged by CSI Compressco GP Inc., which is an indirect, wholly owned subsidiary of TETRA Technologies, Inc. (NYSE: TTI).

TABLE OF CONTENTS12345

PROPERTY PHOTOS

MARKETREPORT

STRATEGIC LOCATION

BUILDINGSDESCRIPTION

SPACEPLAN

PROPERTY PHOTOS

BLDG ONE

BLDG TWO

BLDG ONE & TWOAERIAL VIEWS

OFFERING MEMORANDUM 4

PROPERTY PHOTOS

BLDG ONE OFFICE INTERIOR

OFFERING MEMORANDUM 5

PROPERTY PHOTOS

BLDG ONE WAREHOUSE

WAREHOUSE MEZZAZINE

OFFERING MEMORANDUM 6

PROPERTY PHOTOS

BLDG TWOWAREHOUSE

OFFERING MEMORANDUM 7

PREMIER MANUFACTURING &DISTRIBUTION SECTOR

With the cost of living continuing to rise in most major markets around the country,companies are taking a much closer look at the quality and quantity of a workforce indeciding where to do business. The corner of Texas east of Dallas is quietlyoutperforming the state in a number of important ways.

The second largest employment sector by industry in Kilgore is miningmanufacturing. More than 20% of the workforce is employed in the goods producingsector, and employment is concentrated in four industries: fabricated metal products,primary metals, machinery, and chemicals. A look at occupational strengths showsan advantageous numbers of skilled welders, machinists and production workers aswell as machine operators. Those same goods producing sectors account for only 9%of the workforce in Texas as a whole.

Healthcare 13.4 11.9 12.4 Mining .5 2.0 9.1Manufacturing 8.5 7.0 10.8 Retail Trade 10.6 10.6 7.9Construction 4.9 5.9 6.2Local Government 9.7 10.7 8.9

Industry Sector

Description

Percent of Employment

US Texas Kilgore

MARKETREPORT

KILGORE TX

OFFERING MEMORANDUM 8

BUSINESS FRIENDLY REGULATIONS

The low cost of utilities specially, water and electricity, are also positive aspects of thearea. American Electric Power serves Kilgore with regulated industrial electric rates thatare 60.5% less than the national average and 16% less than the average in Texas.Kilgore leaders have adopted several beneficial tax policies such as property taxabatements and a triple Freeport tax exemption on inventory along with sales and usetax refunds and exemptions on personal property, electricity and natural gas. Kilgore wasalso the first foreign-trade zone in the United States to earn an Alternate Site Frameworkdesignation. It is easy to see why Orgill, Neiman-Marcus, Sysco and Target are allexamples of companies distributing product from the right corner of Texas.The Global Supply Chain Laboratory of Texas A&M University conducted a valueproposition for Gregg County, Texas, using a case study survey. The survey comparedthe ROI of the top ten companies in certain industries to the ROI of Kilgore companies inthose same industries. The results show that Kilgore warehouse/distribution centers aremore profitable.

Industry NAICS CodesTop 10 ROINationality

ROIin Kilgore

Warehouse/Distribution Durable 13.18 25.89Warehouse/Distribution Nondurable 15.37 20.97

OFFERING MEMORANDUM 9

LOCAL ECONOMY& ENERGY SECTOR

The economic base in Gregg County consists of industries related to oilfield support activities, industrial machining, distribution/warehousing, and natural gas distribution. These industries generate a substantial portion of the region’s revenue and require the most labor, both skilled and unskilled. For example, Support Activities for Oilfields are concentrated because of the large amount of oil and natural gas in the region. These companies will gravitate toward the wellheads in order to cut down on transportation and communication costs.

Dallas/Fort Worth, TX Beaumont/Port Arthur, TX Longview/Marshall, TX Austin, TX Houston, TX Fort Smith, AR Shreveport, LAMarkets served from Gregg County

2016 Market Value

OIL AND GAS SERVICE & EQUIPEMENT DISTRIBUTIONSupport Activities for Oil & Gas Operations

City

$1.58 Billion$330 Billion$1.54 Billion$108 Billion$10.61 Billion$211 Billion$769 Billion$15.14 Billion

*Economics Census, US Cesus of Bureau

MARKETREPORT

KILGORE TX

OFFERING MEMORANDUM 10

While Compressco uses this Kilgore facility to service a five-state region, Gregg county and the surrounding area remain an active real estate and energy market. Gregg County’s Petroleum Product - Merchant Whole-sale industry is more concentrated than in Houston; implying the industry is adequate to sustain a petro-leum cluster. Crude Petroleum and Natural Gas Extraction is less concentrated in Gregg County; however, this is industry based on resource location and geography. Additionally, Support Activities for Oil and Gas Operations are lower in Gregg County compared to Harris County and the surrounding area, but that is due to the higher concentration of Petroleum and Natural Gas Extraction and Refining in Houston. Furthermore, while Gregg county has three times less Natural Gas Distribution than Houston, this is a significantly large industry for Gregg County and it continues to expand today. While Petroleum Refineries are almost non-ex-istent in Gregg County, there are refineries located nearby in Tyler approximately 30 minutes away. In addition, the market generated by the oil and gas industry is important for other industry sectors. Recent research indicates companies in other industry sectors (e.g. chemical, field service, machining and machin-ery manufacturing) are all supporting the oil and gas industry. Findings show that chemical manufacturing companies prefer to locate near customers rather than suppliers, and in the same way, industries such as plastic manufacturing receive raw material from the oil, gas and petroleum industry. These are all indicators the recent and current activity level in Gregg County and surrounding area is a stabilized real estate market and not the result of any boom currently in other Texas markets.

Support for Oil & Gas $1,231,498 7,524 4 5.25% Physician Offices $780,063 4,063 3 3.32%Department Stores $211,446 2,943 0 0.90%Pipeline Transportation $25,200 2,616 0 0.11%Metal Manufacturing $ 0 2,285 0 0.00%Freight & Trucking $156,571 1,990 12 0.67%Natural Gas Dist. $159,409 1,697 1 6,79%

Industry Rank (Gregg County)

Industry Sales (000s)

Employees

HQ % Revenue

OFFERING MEMORANDUM 11

TRANSPORTATION & DISTRIBUTION

Kilgore is located on Interstate 20 and Highways 259/59 and has access to over 24 millionpeople within a five hours drive or less. Transportation corridors offer easy access acrossTexas, the United States, and from Canada to Mexico. The accessibility to major trafficarteries is a great advantage for the companies located in Gregg County.I-20 is a major east–west Interstate Highway in the Southern United States. It intersectsseven of the 10 primary north–south Interstates and also the east-west Interstates 10 and30. U.S. route 259 is a north–south spur of U.S. Route 59, a north–south United Stateshighway that is a border-to-border route, part of NAFTA Corridor Highway System.Gregg County possesses a high concentration of the oil and gas extraction industry. FromGregg County companies can serve important local and regional markets based on theaccess to important highway arteries. Also, companies can reach important markets foroil and gas related industries such as the Petroleum market in Houston, which is stronglyestablished.

Kilgore Rail services are provided by Union Pacific (UP), and Burlington Northern SantaFe (BNSF).

Dallas 120Shreveport 55Houston 199Austin 276New Orleans 404Tulsa 292Bentonville 335Memphis 372

Distance From Major Cities

Distance (Mile)City

STRATEGICLOCATION

KILGORE TX

Kilgore

OFFERING MEMORANDUM 12

Dallas120 miles

Memphis372 miles

Houston199 miles

675 A MARVIN SMITH KILGORE TX 75662

OFFERING MEMORANDUM 13

SPACEPLAN

BLDG ONE675 MARVIN A. SMITH

KILGORE TX 75662

OFFERING MEMORANDUM 14

BLDG TWO675 MARVIN A. SMITH

KILGORE TX 75662

OFFERING MEMORANDUM 15

SPACEPLAN

BUILDINGSDESCRIPTION

BLDG ONE675 MARVIN A. SMITH

KILGORE TX 75662

Year built 201312,625 SF Total

10,125 SF warehouse 75’ x 135’ x 26’ 2,500 SF office

(10) OfficesConference room(2) Breakrooms

Men’s and Women’s restroomsShop office

Locker room and restroomReception areaShop restrooms

435,600 SF Yard with 3-4’ Commercial SB2 Rock(2) 2,500 SF Aprons

9,875 SF Paved Parking Lot

OFFERING MEMORANDUM 16

SHOP AREA• 2,250 SF Wash Bay• (1) 3-Phase 10-Ton Single Girder Crane• (6) 16’x16’ Sectional Overhead Doors Hi-Lifted To 26’• (1) 12’xl2’ Sectional Overhead Doors Hi-Lifted To 26’• (1) 6030 window and (1) 4030 window• (4) 3070 doors with panic hardware• (4) 10’ Ridge vents• (3) 3-Phase Exhaust Fans• (4) Gas Heaters• 150’ of 8’ liner panels of 12’ liner panels• 210’ of wall lights• Expandable end wall• Galvalume roof

ELECTRICAL• 480 Volt (3) phase 600 Amp Underground Service• Step-Down Transformer• HVAC• (4) 4-Ton Cooling System(s) With Gas Heat• (4) 150,000 BTU Shop Heaters• (4) Restroom Exhaust Fans

INSULATION• R-13 Fiberglass Batt Insulation in Exterior Finished Walls• R-11 Fiberglass Batt Insulation in Exterior Finished Walls

CRANE• (1) 3-Phase 10-Ton Single Girder Crane• 35’ Crane Span• 150’ Crane Rail• 20’ Hook Height

OFFERING MEMORANDUM 17

BUILDINGSDESCRIPTION

BLDG TWO675 MARVIN A. SMITH

KILGORE TX 75662

Year Built 20197,500 SF Total

7,290 SF warehouse 75’ x 100’ x 20’210 SF office

(1) office(1) restroom

(4) 180 SF Aprons

YARD SPECSFUEL ISLAND• 20’ x 40’ x 18’ Roof only with (2) Columns in Center• 1:12 Roof Pitch• Galvalume roof

FENCING• 3350’ (Linear Feet) 6’ Tall Barb Wire Chain Link Fence• (3) 25’ Gates

SHOP AREA• (4) 16’ x 14’ Sectional Overhead Door • (2) 3070 doors with panic hardware• (4) 25’ Bays• 1:12 Roof Pitch

ELECTRICAL• 208/120 Volt (3) Phase 400 Amp Overhead

HVAC• (1) 1-Ton Cooling System(s) with Electric Heat• (1) Restroom Exhaust Fan

INSULATION• R-13 Fiberglass Batt Insulation in Exterior Finished Walls• R-11 Fiberglass Batt Insulation in Exterior Finished Walls

OFFERING MEMORANDUM 18

OFFERING MEMORANDUM 19

BROKER CONTACTS

TRACE ELRODSenior Managing Director telrod@ngkf.com 972.934.9757 x 47330

JACK BREWERAssociate jack.brewer@ngkf.com 972.934.9757 x 47341

12770 Merit Drive Suite 760 Dallas TX 75251