EXCLUSIVE OFFERING $2,800, % CAP JPMORGAN Chase Bank Ground Lease

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1 SITE RENDERING EXCLUSIVE OFFERING $2,800, % CAP - greater houston EXP DALLAS JOE CAPUTO joe@exp1031.com BOB MOORHEAD bob@exp1031.com property. Brand new construction. Scheduled completion September 2012 tenant. Lessee: JPMorgan Chase Bank, N.A. operates in more than 60 countries and employs over 79,000 people. Lessee is leading financial services firm with assets of $2 trillion and 92.1 million customers - S&P Rated AA-. lease structure. Brand new, 20-year, corporate, NNN ground lease with 10.0% rent increases every 5 years. location. Hard corner location at Cypresswood Drive & Champion Forest Drive (40,256 Cars / Day) off I-270 (133,241 cars / day). Directly across from Kroger anchored shopping center with BBVA Compass & Subway as additional tenants. Nearby to Champions Village Center (408,000 SF) anchored by Randall s, Barnes & Noble, and World Market. Nearby to Kleinwood Center (148,963 SF) anchored by H.E.B., Starbucks, & Wells Fargo. Located in the Houston-Sugar Land-Baytown MSA: 6 th largest in the United States. 1 mile radius household income is $146,631 exceeding state & national averages

2 Table of contents Disclaimer PAGE 1: PAGE 2: PAGE 3: PAGE 4: PAGE 5: PAGE 6-7: PAGE 8: PAGE 9-10: PAGE 11: COVER TABLE OF CONTENTS DISCLAIMER INVESTMENT TENANT LEASE OVERVIEW PROPERTY PHOTOS SITE MAP AERIAL PHOTOS LOCATION OVERVIEW LOCATION MAPS DEMOGRAPHICS SITE RENDERING Disclaimer EXP Realty Advisors, Inc. ( Agent ) has been engaged as an agent for the sale of the property located at Cypresswood Drive & Champion Forest Drive, NW Harris County, TX by the owner of the Property ( Seller ). The Property is being offered for sale in an as-is, where-is condition and Seller and Agent make no representations or warranties as to the accuracy of the information contained in this Offering Memorandum. The enclosed materials include highly confidential information and are being furnished solely for the purpose of review by prospective purchasers of the interest described herein. The enclosed materials are being provided solely to facilitate the prospective investor s own due diligence for which it shall be fully and solely responsible. The material contained herein is based on information and sources deemed to be reliable, but no representation or warranty, express or implied, is being made by Agent or Seller or any of their respective representatives, affiliates, officers, employees, shareholders, partners and directors, as to the accuracy or completeness of the information contained herein. Summaries contained herein of any legal or other documents are not intended to be comprehensive statements of the terms of such documents, but rather only outlines of some of the principal provisions contained therein. Neither the Agent nor the Seller shall have any liability whatsoever for the accuracy or completeness of the information contained herein or any other written or oral communication or information transmitted or made available or any action taken or decision made by the recipient with respect to the Property. Interested parties are to make their own investigations, projections and conclusions without reliance upon the material contained herein. Seller reserves the right, at its sole and absolute discretion, to withdraw the Property from being marketed for sale at any time and for any reason. Seller and Agent each expressly reserves the right, at their sole and absolute discretion, to reject any and all expressions of interest or offers regarding the Property and/or to terminate discussions with any entity at any time, with or without notice. This offering is made subject to omissions, correction of errors, change of price or other terms, prior sale or withdrawal from the market without notice. Agent is not authorized to make any representations or agreements on behalf of Seller. Seller shall have no legal commitment or obligation to any interested party reviewing the enclosed materials, performing additional investigation and/or making an offer to purchase the Property unless and until a binding written agreement for the purchase of the Property has been fully executed, delivered, and approved by Seller and any conditions to Seller s obligations hereunder have been satisfied or waived. By taking possession of and reviewing the information contained herein, the recipient agrees that (a) the enclosed materials and their contents are of a highly confidential nature and will be held and treated in the strictest confidence and shall be returned to Agent or Seller promptly upon request; and (b) the recipient shall not contact employees or tenants of the Property directly or indirectly regarding any aspect of the enclosed materials or the Property without the prior written approval of the Seller or Agent; and (c) no portion of the enclosed materials may be copied or otherwise reproduced without the prior written authorization of Seller and Agent.

3 Investment overview PRICE: $2,800,000 CAP RATE: 5.00% NET OPERATING INCOME: $140,000 BUILDING AREA: 4,264+ Square Feet LAND AREA: Acres YEAR BUILT: 2012 OWNERSHIP: Fee Simple Interest OCCUPANCY: 100% Lease overview Initial Lease Term: 20 Years, Plus 4, 5 Year Options to Renew Projected Rent Commencement: September 2012 Projected Lease Expiration: September 2032 Lease Type: Ground Lease Absolute NNN Rent Increases: 10% in Lease Year 6 & Escalating Every 5 Yrs. Year 1-5 Annual Rent (Current): $140,000 Year 6-10 Annual Rent: $154,000 Year Annual Rent: $169,400 Year Annual Rent: $186,340 Year Annual Rent (Option 1): $204,974 Year Annual Rent (Option 2): $225,471 Tenant overview JPMorgan Chase Bank, N.A. Year Annual Rent (Option 3): $248,019 Year Annual Rent (Option 4): $272,820 JPMorgan Chase Bank, N.A. JPMorgan Chase is one of the oldest, largest and strongest financial services firms in the world. With $2 Trillion in assets and $116 Billion in stockholder equity, they serve millions of U.S. consumers and many of the world's most prominent corporate, institutional and government clients. The company is the leader in investment banking, financial services for consumers, small business and commercial banking, financial transaction processing, asset management and private equity. The company s Investment Bank segment provides investment banking products and services, including advising on corporate strategy and structure, capital raising in equity and debt markets, risk management, market-making in cash securities and derivative instruments, and prime brokerage and research. Its Commercial Banking segment provides lending, treasury services, investment banking, and asset management services to corporations, municipalities, financial institutions, and not-for-profit entities. The company s Treasury and Securities Services segment offers transaction, investment, information services, cash management, trade, wholesale card, and liquidity products and services. Its Asset Management segment provides investment and wealth management services to institutions, retail investors, and high-net-worth individuals. It also offers global investment management in equities, fixed income, real estate, hedge funds, private equity, and liquidity products, including money market instruments and bank deposits; and trust and estate, banking, and SUBJECT brokerage PROPERTY services, as well as retirement services. The company s Retail Financial Services segment offers retail banking and consumer lending services that PRIOR include TO PANDA checking EXPRESS and savings EXPANSION accounts, mortgages, home equity and business loans, and investments through ATMs, online banking, and telephone banking. Its Card Services segment issues credit cards and processes various credit card payments. JP Morgan Chase & Co. principal bank subsidiaries are JP Morgan Chase Bank, N.A., a national banking association with branches in 17 states, and Chase Bank USA, N.A., a national banking association that is the firm s credit card-issuing bank. JP Morgan Chase & Co s principal nonbank subsidiary is JP Morgan Securities, Inc., its US investment banking firm. The company, headquartered in New York City, operates in 60+ countries and employs over 200,000 people. It is rated "AA-" by Standard & Poor's and is a component of the Dow Jones Industrial Average. 3

4 Property Photos RIGHT ELEVATION FRONT ELEVATION REAR ELEVATION 4

5 SITE MAP 5

6 Aerial photo Kleb Intermediate School Klein High School Mittelstadt ElementarySchool 6

7 Aerial photo Raveneaux Country Club Champion Forest Plaza Champions Golf Club Champions Village 7

8 Location overview Cypresswood drive & Champion Forest Drive, Spring, Texas IMMEDIATE TRADE AREA Chase Bank is located along Cypresswood Drive (20,725 Cars / Day) just east of Champion Forest Drive (19,540 Cars / Day) in Spring, Texas. Cypresswood Drive runs east - west from the bank to Highway 249 and Interstate 45, respectively, which connect downtown Houston to the city s northern suburbs around Spring. Champion Forest Drive is a surface street connecting area residential neighborhoods. This corner is the point of connection for the Falls at Champion Forest, Lakes of Sterling Gates, and Champion Forest housing developments. The homes in these developments range from $550,000 to $1,000,000 plus. In addition to the proximity to affluent neighborhoods (less than 0.1 miles) the subject property sits across from a 70,132 SF Kroger anchored shopping center. Also found in this neighborhood center are several regional and local retailers including Subway, and two outparcels; BBVA Compass and Goodyear Tires. Grocers located in the trade area Kroger, H.E.B., and Randall s. There are several power centers such as Kleinwood Center (148,963 SF), and Champions Village Shopping Center (408,000 SF). The Kleinwood Center is home to H.E.B., Starbucks, LA Fitness, and other national tenants. The Champions Village Shopping Center is home to Randall s grocer, Stein Mart, World Market, and Barnes & Noble. It is also home to many boutique stores including Kirkland s, Zales, and Bath & Body Works. NW HARRIS COUNTY/SPRING, TEXAS Spring, Texas is located in the extraterritorial jurisdiction of Houston in Harris County, Texas, 20 miles north of Downtown Houston. The population of Spring grew from 36,385 to 54,298 between 2000 and 2010 equaling a 49.2% increase. Harris County has a population of 4.1 million (2010 Census), making it the most populous county in Texas and the third most populous county in the United States. The Houston Business Journal reported in 2010 that ExxonMobil plans to build a corporate campus in unincorporated Harris County along Interstate 45 adjacent to Spring. The historic town located off Interstate 45 is, today, a retail shopping and tourism area that operates out of historic 19th and early 20th century homes. HOUSTON-SUGARLAND-BAYTOWN METROPOLITAN AREA Colloquially referred to as Greater Houston and situated in Southeast Texas, Houston-Sugar Land-Baytown is the sixth-largest metropolitan statistical area (MSA) in the United States with a population of 5,946,800 as of the 2010 census. From 2000 to 2030, the metropolitan area is projected by Woods & Poole Economics to rank fifth in the nation in population growth adding 2.66 million people. In 2006, the Houston MSA ranked first in Texas and third in the U.S. within the category of "Best Places for Business and Careers" by Forbes. The MSA's Gross Metropolitan Product (GMP) in 2005 was $308.7 billion, up 5.4 percent from 2004 in constant dollars. By 2010, the GMP rose to $384 billion, fifth in the nation. Only 28 nations other than the United States have a GDP exceeding Houston's GAP. Mining, which in Houston is almost entirely oil and gas exploration and production, accounts for 11 percent of Houston's GAP. Houston is second to New York City in Fortune 500 headquarters. Galveston Bay and the Buffalo Bayou together form one of the most important shipping hubs in the world, and the Port of Houston, the Port of Texas City, and the Port of Galveston are all major seaports located in Greater Houston. The area is one of the leading centers of the energy industry, particularly petroleum processing, and many companies have large operations in this region. The MSA comprises the largest petrochemical manufacturing area in the world, including for synthetic rubber, insecticides, and fertilizers. Much of metro area's success as a petrochemical complex is enabled by the Houston Ship Channel. The area is also the world's leading center for building oilfield equipment, and is a major center of biomedical research, aeronautics, and high-technology. Because of these economic trades, many residents have moved to the Houston area from other U.S. states, as well as hundreds of countries worldwide. Houston is home to the Texas Medical Center the largest medical center in the world several universities (including Rice University, Texas Southern University, and The University of Houston), and two of the largest systems of higher learning in the United States (The Houston and Lone Star Community College systems). The University of Houston s annual impact on the Houston-area's economy alone equates to that of a major corporation: $1.1 billion in new funds attracted annually to the Houston area, $3.13 billion in total economic benefit, and 24,000 local jobs generated. CNN/Money and Money Magazine have recognized five cities in the Greater Houston area the past three years as part of its 100 Best Places to Live in the United States. 8

9 Location map 9

10 Location map 10

11 Demographics Demographic snapshot Radius 1 Mile 3 Mile 5 Mile Population: 2016 Projection 8, , , Estimate 8,587 95, , Census 8,459 92, ,575 Growth % 9.70% 8.50% Growth % 3.00% 1.90% 2011 Households: 2016 Projection 3,579 41, , Estimate 3,404 37,784 92, Census 3,361 36,622 90,215 Growth % 10.80% 8.80% Growth % 3.20% 2.10% Owner Occupied 2,714 24,407 60,915 Renter Occupied ,378 31, Avg Household Income $146,631 $104,306 $93, Med Household Income $117,159 $79,043 $70, Per Capita Income $57,942 $41,089 $33, Households by Household Inc: Income Less than $15, ,305 Income $15,000 - $24, ,788 7,054 Income $25,000 - $34, ,545 7,388 Income $35,000 - $49, ,676 10,818 Income $50,000 - $74, ,574 16,828 Income $75,000 - $99, ,790 12,328 Income $100,000 - $149, ,279 16,829 Income $150,000 - $199, ,718 7,351 Income $200, ,080 7,164 SOUTHERN VIEW OF HOUSTON SKYLINE CHAMPIONS VILLAGE SHOPPING CENTER 11

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