K AY V O N P L A Z A I I I

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E x e c u t i v e S u m m a r y

EXECUTIVE SUMMARY

OFFERING PRICE$9,000,000

CAP RATE8.90%

GROSS LEASABLEAREA 97,010 SF

YEAR BUILT / RENOV1980 / 2016 / 2017

PRICE PER SQFT$92.77

ZONING NO ZONING

LAND AREA5.19 ACRES

DOWN PAYMENT$3,150,000 | 35%

CURRENTOCCUPANCY100%

PRO FORMA CAP RATE9.58%

NUMBER OF SUITES64

TOTAL RETURN18.09%

E X E C U T I V E S U M M A R Y | 2

Marcus & Millichap is pleased to present the opportunity to acquire Kayvon Plaza III, consisting of five buildings located at: 6134 Airline Drive, 6144 Airline Drive,

6210 Airline Drive, and 10301 Fulton Street in Houston, Texas. Kayvon Plaza III is a unique asset offering small industrial warehouse units with office space,

averaging 1,515 square feet per unit at an affordable base rent averaging $9.82 per square foot on Gross Leases.

Its excellent access from Airline Drive, Fulton Street, and Bangs Road allows for the ability to accommodate delivery trucks. The Property’s unique offering insulates

it from competition in its submarket. There is no industrial office warehouse property offering small square foot units with affordable rental rates from Downtown

Houston to George Bush Intercontinental Airport. There are also no vacant lots for sale of one or more acres on major thoroughfares in the property’s submarket

(Airline / Northside / Northline).

Along with base rent, landlord may earn additional income streams by buying “bulk” electricity at a discount, and selling the power to tenants who wish to purchase

power from the landlord instead of CenterPoint Energy. Tenants pay the landlord approximately double the landlord’s cost for electricity that is independently

measured by house meters for each unit. Landlord also earns revenue from forfeiture of security deposits should a tenant move out and be replaced by a new

tenant from the waiting list. Given the nature of operating a property with sixty-four units comprised of small business tenants, collecting late fees from a couple of

tenants is another expected income stream.

• 97,010 Square Feet of Gross Leasable Area on 5.19 Acres• Eight Ingress/Egress Access Points on Airline Drive (22,269 Vehicles Per Day), Fulton Street (6,720 Vehicles Per Day), and Bangs Road• Consistently Averaged Near-100% Occupancy Since 2017, Typically with a Waiting List• Room to Increase Base Rent, to Increase Value and Cashflow• Economic Resiliency: Recession-Resistant Tenant Mix Evidenced By 72% Occupancy During Peak of 2008 Great Recession. Over 75% of Rent Collected in

April and May 2020 (Covid-19 Shelter In Place)• High Quality Construction

K AY V O N P L A Z A I I IP r op e r t y Ov e r v i ew

P R O P E R T Y O V E R V I E W | 3

Walgreens E Parker Rd Parker Rd

Fulton St

Airline Dr

Little York Rd

Airline Dr

Site

E Tidwell Rd

McDonald’s

Burger King

E Tidwell Rd

RASPASFlamingo Chill

E Little York Rd

A E R I A L | 4

Airline Drive 16,446 VPD

Fulton Stre

et 16,331 VPDMI PUEBLOMI PUEBLO

LA FAMILIA AUTOSLA FAMILIA AUTOS

5 Stars Cuts Barber Shop

Venegas Tax Service

H-Town Tire Shop

Bangs Road

Site

Entrance 1

Entrance 3

Entrance 5

Entrance 6

Entrance 7

Entrance 8

Entrance 2

Entrance 4

A E R I A L | 5

Less than 1 Mile

Airline Drive 16,446 VPD

Fulton Street 16,331 VPD

Bangs Road

Site

Entrance 1

Entrance 6 Entrance 7Entrance 5

Entrance 8

Entrance 2Entrance 3Entrance 4

A E R I A L | 6

6 1 3 4 & 6 1 4 4 A I R L I N E D R I V E B u i l d i n g S p e c s

P a r c e l N u m b e r : 0 3 5 2 5 4 0 2 3 0 0 2 45 6 , 0 0 0 S q u a r e F e e t

Number of Buildings: Two

Gross Leasable Area: 56,000 Square Feet

Clear Height: 18 feet

Rear Dock Door Height: 16 feet

Construction: Metal

Roof Material/Age: Eighteen-Year-Old, Metal, All Grommet Sealed Roof

Power: 240v/120v

HVAC’d Office Available: Window Units

Parapet for Signage: New Palladium Parapets Installed Using Marine

Plywood, Primed, and Painted Using Metal Studs (Three Months Old)

B U I L D I N G S P E C S | 7

1 0 3 0 1 F U L T O N S T R E E TB u i l d i n g S p e c s

P a r c e l N u m b e r : 0 3 5 2 5 4 0 2 3 0 0 2 32 3 , 2 5 0 S q u a r e F e e t

Number of Buildings: Two

Gross Leasable Area: 23,250 Square Feet

Clear Height: 18 feet

Front Dock Door Height: 10 feet

Rear Dock Door Height: 10 feet

Roof Material/Age: Metal/4 Years

Power: 120/240v

HVAC’d Office Available: 200 Square Feet

Parapet for Signage: Yes

B U I L D I N G S P E C S | 8

6 2 1 0 A I R L I N E D R I V E B u i l d i n g S p e c s

P a r c e l N u m b e r : 0 5 6 2 9 2 0 0 1 0 0 0 11 7 , 7 6 0 S q u a r e F e e t

Number of Buildings: One

Gross Leasable Area: 17,760 Square Feet

Clear Height: 18 feet

Front Dock Door Height: 10 feet

Rear Dock Door Height: 10 feet

Construction: Metal

Roof Material/Age: Metal/3 Years

Power:120v

HVAC’d Office Available: 100 Square Foot Window Units

Parapet for Signage: Yes

Other Features:

• Awning and Retail Suite Entrance Access Fronting Airline Drive

• New Colorful Awnings to Match the Custom Ordered Colored

Garage Doors

• Fortified with Insulators, Roof Sheet Metal, and Firewalls to Provide

Well Cooled Spaces When Garage Doors Are Open

B U I L D I N G S P E C S | 9

$9,000,000OFFERING PRICE

CAP Rate 8.90%Down Payment $3,150,000 | 35%Number of Suites 64Price Per Square Feet $92.77

Gross Leasable Area 97,010 SF

Lot Size 5.19 AcresYear Built | Renovated 1980 | 2016 | 2017Occupancy 100.00%

8.90% $92.77PRICE PER SF

5.19LOT SIZE

ACRES CAP RATE

P R I C I N G O V E R V I E W | 10

N O N - E N D O R S E M E N T & D I S C L A I M E R N O T I C ES P E C I A L C O V I D - 1 9 N O T I C E

All potential buyers are strongly advised to take advantage of their opportunities and obligations to conduct thorough due diligence and seek expert opinions as they may deem necessary, especially given the unpredictable changes resulting from the continuing COVID-19 pandemic. Marcus & Millichap has not been retained to perform, and cannot conduct,

due diligence on behalf of any prospective purchaser. Marcus & Millichap’s principal expertise is in marketing investment properties and acting as intermediaries between buyers and sellers. Marcus & Millichap and its investment professionals cannot and will not act as lawyers, accountants, contractors, or engineers. All potential buyers are admonished and

advised to engage other professionals on legal issues, tax, regulatory, financial, and accounting matters, and for questions involving the property’s physical condition or financial outlook. Projections and pro forma financial statements are not guarantees and, given the potential volatility created by COVID-19, all potential buyers should be comfortable with and

rely solely on their own projections, analyses, and decision-making.)

C O N F I D E N T I A L I T Y & D I S C L A I M E RThe information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap

and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the

subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB's or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects

of any tenant, or any tenant's plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers

must take appropriate measures to verify all of the information set forth herein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc.

© 2018 Marcus & Millichap. All rights reserved.

N O N - E N D O R S E M E N T N O T I C EMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation's logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product,

service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers. Activity ID: ZAB0040200

A L L P R O P E R T Y S H O W I N G S A R E B Y A P P O I N T M E N T O N LY.P L E A S E C O N S U LT Y O U R M A R C U S & M I L L I C H A P A G E N T F O R M O R E D E TA I L S .

OFFICES THROUGHOUT THE U.S. AND CANADAwww.marcusmillichap.com

INFORMATION ABOUT BROKERAGE SERVICESTexas law requires all real estate license holders to give the following information about brokerage services to prospective buyers, tenants, sellers and landlords..

TYPES OF REAL ESTATE LICENSE HOLDERS• A BROKER is responsible for all brokerage activities, including acts performed by sales agents sponsored by the broker.• A SALES AGENT must be sponsored by a broker and works with clients on behalf of the broker.

A BROKER’S MINIMUM DUTIES REQUIRED BY LAW (A client is the person or party that the broker represents):• Put the interests of the client above all others, including the broker’s own interests;• Inform the client of any material information about the property or transaction received by the broker;• Answer the client’s questions and present any offer to or counter-offer from the client; and• Treat all parties to a real estate transaction honestly and fairly.

A LICENSE HOLDER CAN REPRESENT A PARTY IN A REAL ESTATE TRANSACTION:

AS AGENT FOR OWNER (SELLER/LANDLORD): The broker becomes the property owner's agent through an agreement with the owner, usually in a written listing to sell or propertymanagement agreement. An owner's agent must perform the broker’s minimum duties above and must inform the owner of any material information about the property or transactionknown by the agent, including information disclosed to the agent or subagent by the buyer or buyer’s agent.

AS AGENT FOR BUYER/TENANT: The broker becomes the buyer/tenant's agent by agreeing to represent the buyer, usually through a written representation agreement. A buyer's agentmust perform the broker’s minimum duties above and must inform the buyer of any material information about the property or transaction known by the agent, including informationdisclosed to the agent by the seller or seller’s agent.

AS AGENT FOR BOTH - INTERMEDIARY: To act as an intermediary between the parties the broker must first obtain the written agreement of each party to the transaction. The writtenagreement must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker's obligations as an intermediary. A broker who acts as an intermediary:• Must treat all parties to the transaction impartially and fairly;• May, with the parties' written consent, appoint a different license holder associated with the broker to each party (owner and buyer) to communicate with, provide opinions and

advice to, and carry out the instructions of each party to the transaction.• Must not, unless specifically authorized in writing to do so by the party, disclose:

o that the owner will accept a price less than the written asking price;o that the buyer/tenant will pay a price greater than the price submitted in a written offer; ando any confidential information or any other information that a party specifically instructs the broker in writing not to disclose, unless required to do so by law.

AS SUBAGENT: A license holder acts as a subagent when aiding a buyer in a transaction without an agreement to represent the buyer. A subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first.

TO AVOID DISPUTES, ALL AGREEMENTS BETWEEN YOU AND A BROKER SHOULD BE IN WRITING AND CLEARLY ESTABLISH:• The broker’s duties and responsibilities to you, and your obligations under the representation agreement.• Who will pay the broker for services provided to you, when payment will be made and how the payment will be calculated.

LICENSE HOLDER CONTACT INFORMATION: This notice is being provided for information purposes. It does not create an obligation for you to use the broker’s services. Pleaseacknowledge receipt of this notice below and retain a copy for your records.

Marcus & Millichap 9002994 tim.speck@marcusmillichap.com 972-755-5200Licensed Broker /Broker Firm Name or Primary Assumed Business Name

License No. Email Phone

Tim A. Speck 432723 tim.speck@marcusmillichap.com 872-755-5200Designated Broker of Firm License No. Email Phone

Ford Noe 709695 ford.noe@marcusmillichap.com 713-452-4200Licensed Supervisor of Sales Agent/Associate License No. Email Phone

11-2-2015

Information available at www.trec.texas.govIABS 1-0

Regulated by the Texas Real Estate Commission

GUS N. LAGOSFirst Vice President Investments Director, National Retail Group

Direct: (713) 452-4257 Mobile: (713) 459-1333 Gus.Lagos@marcusmillichap.comLicense: TX: 419197

Three Riverway, Suite 800Houston,TX 77056

ALEX WOLANSKYAssociateNational Retail Group

Direct: (713) 452-4292 Mobile: (713) 775-8899Alex.Wolansky@marcusmillichap.comLicense: TX: 702899

Three Riverway, Suite 800Houston,TX 77056

EXCLUSIVELY LISTED BY:

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K AY V O N P L A Z A I I IE x e c u t i v e S u m m a r y