7340 WAS HINGTON AVE , HOUSTON, TX

AGU Ramen, one of Houston’s most successful restaurant concepts is located along the Washington Corridor within close proximity to Interstate 10. The Washington Corridor is known as Houston’s restaurant row and is surrounded by the strongest performing residential subsets in the city. The influx of growing neighborhoods such as The Heights and Rice Military coupled with proximity to Houston’s longstanding premier neighborhoods such as River Oaks and Memorial Villages have a profoundly positive impact on the location and the restaurant’s success. While there are six Agu Ramen locations in Houston, alternative locations are more than 12 miles away which allows the Washington location to draw upon the Houston’s premier residential areas.

I N V E S T M E N T S U M M A R YLocation 7340 Washington Ave, Houston, TX

Tenant Aguplus, LLC, a Hawaii limited liability company

Guarantor Corporate guaranty and partial personal

Property Size 3,388 SF w/ approximate 500 SF patio

Land Area 0.29 Acres

Lease Type Absolute NNN

Parking 27 spaces (8.51/1,000 SF)

Visibility Over 350,000 Vehicles Per Day

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

Added bonus to property with 20 years of billboard income via Clear Channel Outdoor, Inc.

HAMPTON INNDENNY’S

TEXASD.O.T.

7 3 4 0 W A S H I N G T O N

K AT Y F R E E W AY F E E D E R R O A D

K AT Y F R E E W AY F E E D E R R O A D

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

1010

WA S H I N G

TON AV E NUE | 2 7 , 0 0 0 V

PD

10 YEAR Term

Absolute

NNN GUARANTYon Lease

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P R O P E R T Y P H O T O G R A P H Y

AGU Ramen originated in Hawaii and after opening five restaurants there, chef/

owner Hisashi Uehara personally moved to Houston and commenced expansion in

the Houston metro area. Under the brand Agu Ramen, the chef/owner opened three

stores in Houston and has plans to open three additional units in suburban areas:

Sugar Land, Nassau Bay, and Katy. The concept is simple which features 20+ ramen

bowls, a few appetizers, and donburi and poke bowls plus a full bar including Japanese

beer and whiskey. The space was finished out to the highest standards with exposed

brick and a rough-hewn wood decorate and also includes 27 parking spaces. Agu

Ramen is one of Houston’s most critically acclaimed restaurants with accolades from

Zagat, Eater Houston, Houston Chronicle, and Culturemap Houston. Hishasi named

his premier ramen bistros, “AGU” which means “fellowship” or “best friends” in Miyako,

his native dialect.

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T E N A N T P R O F I L E

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

69

69

69

Westpark Tollway

Katy Frwy

Southwest Frw

y

Northwest Frwy

North Frwy

Hardy Toll Road

East

ex F

rwy

NorthLoop

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

3 AGU Ramen Locations in Houston

and 3 more on the way in Houston suburbs (Sugar Land, Nassau Bay and Katy)

Houston’s only Inner Loop Agu Ramen

Closest AGU Ramen Locations are More than 12 miles away

Chef/Owner Hisashi Uehara moved from

Hawaii to Houston, TX Pursue Full-scale Expansion in the City

T E N A N T A C C O L A D E S

Washington Avenue | 27,000 VPD

Washington Avenue | 27,000 VPD

CBDCBD

Elan MemorialPark Apartments

Elan MemorialPark Apartments

The District at Washington

The District at Washington

PearlWashington

PearlWashington

IH-10IH-10

T C Jester BLVDT C Jester BLVD

Shepherd DriveShepherd Drive

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334,000 VPD334,000 VPD

AGU Ramen is surrounded by some of Houston’s highest-end and

fastest growing residential neighborhoods including River Oaks

(1.0 – 3.0 miles), Washington/Rice Military (0 – 1) miles, Montrose

(1.5 – 3.0 miles), The Heights (0.5 – 3.0 miles), and downtown (2.0

– 3.0). The neighborhoods are projected to continue to expand

substantially over the next five years through the addition of

lifestyle amenities and state-of-the-art apartment buildings,

condominium projects, and townhomes.

S T R O N G D E M O G R A P H I C S

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P R O X I M A T E R E S I D E N T I A L N E I G H B O R H O O D STransitioning to a Higher Quality Residential Model

The neighborhoods surrounding 7340 Washington are among Houston’s premier housing options many of which have experienced 300-400% price appreciation over the last 20 years. The area is nearly at capacity in terms of adding net new homes, however, developers and residential owners are taking advantage of demand for high quality infill residential stock. For this reason, many of the older single family bungalows and apartments are being torn down and replaced with high quality residential product – evidenced by the 10%-20% average annual home price appreciation seen in the area.

LAZYBROOK / TIMBERGROVE: A neighborhood located inside the 610 loop and just west of Houston Heights surrounded by restaurants, education opportunities, entertainment venues, shopping and more. The average home sale in this neighborhood is $533,205 and consists mostly of single tenant homes.

CAMP LOGAN: A blend of townhomes and single family homes ranging from $500,000 to $1.5 million. This neighborhood is tucked into the northeast corner of Memorial Park, and many homes front on unique triangular pocket parks.

CRESTWOOD / GLEN COVE: Residents are immediately adjacent to the 1508-acre Memorial Park that features Houston’s first golf course, a soft jogging trail along with hiking and biking trails, picnic grounds, ball fields, tennis courts, multiple children’s playgrounds, a public swimming pool, and The Houston Arboretum and Nature Center. The neighborhood is primarily composed of single family homes that range in price from $800,000 to $2.5 million.

COTTAGE GROVE: Comprised of 1,100 single-family homes and townhomes, Cottage Grove properties range in price from $500,000 to over a million dollars. Cottage Grove was originally an independent city located at Houston and Texas Central’s first rail stop. The nearby banks of White Oak Bayou and a tree-shaded neighborhood park with a little league field and outdoor basketball court are popular recreation spots for the residents.

OLD SIXTH WARD: The Old Sixth Ward contains the city’s most intact collection of Victorian Era structures, and in 2007 it was designated as the City of Houston’s first Protected Historic District. With its downtown skyline views and its proximity to Sabine Street and the Buffalo Bayou trail system, Old Sixth Ward is truly one of Houston’s residential gems. Homes in the area start at $300,000 with some priced over $1.0 million.

THE HEIGHTS: The neighborhood is primarily comprised of townhomes that range in value from $300,000 up to $1.0 million. Established as a developer-created TIRZ, this community abuts the western boundary of the historic Washington and Glenwood Cemeteries, which 100 years ago marked Houston’s city limit. The Heights includes Spotts Park, boasts downtown skyline views, and has sparked commercial redevelopment along Studemont St. and the Washington Avenue corridor.

MAGNOLIA GROVE: The subdivision is surrounded with restaurants, education opportunities, entertainment venues and shopping. The streets in the district retain much of their traditional character but have now transitioned to a higher density urban residential model.

RICE MILITARY: The district is an urban center that started to experience a proliferation of young professionals in the early 2000’s due to its proximity to employment centers, new stock of townhomes, entertainment, shopping, and dining options. Rice Military proper has about 400 homes that range in value from $400,000 to $1.0 million.

RIVER OAKS: Widely considered the most affluent enclave in Houston. The area includes River Oaks Country Club, Houston’s most prestigious golf course, and homes range from $2.0 to $15.0 million.

AVALON PLACE: Homes in Avalon Place have more than tripled in value over the last 20 years driven by the neighborhoods tree lined streets, accessibility, and proximity to amenities. Homes now range in price from $1.0 to $3.0 million.

MONTROSE: Developed in 1911, the four-square-mile area is a pocket of eccentricity and diversity in the heart of the city. The area comprised of townhomes and single family homes ranging in price from $400,000 to over $2.0 million.

L O C A T I O N O V E R V I E W

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Description1-Mile 3 Mile 5 Mile

Total % Total % Total %Population2022 Projection 13,410 151,195 480,8452017 Estimate 12,076 138,818 448,0482010 Census 9,714 119,543 400,1582000 Census 7,861 107,394 373,323Growth 2017 - 2022 11.05% 8.92% 7.32%Growth 2010 - 2017 24.31% 16.12% 11.97%Growth 2000 - 2010 23.57% 11.31% 7.19%2017 Est. Avg HH Income $165,446 $142,766 $126,298

The GalleriaThe Galleria

Memorial ParkMemorial Park

10

610IH-610 IH-610

Washington Avenue | 27,000 VPD

Washington Avenue | 27,000 VPDIH 10 | 334,000 VPD

IH 10 | 334,000 VPD

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ADDITIONAL INFORMATIONRYAN WEST Senior Managing Director | rwest@hfflp.com | 713-852-3535

JOHN INDELLI Associate | jindelli@hfflp.com | 713-852-3407

STERLING CURRY Analyst | scurry@hfflp.com | 713-852-3452

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.