2412 WASHINGTON AVE, HOUSTON, TX 77007

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Address: 2412 Washington Ave, Houston, TX 77007

Site Area: 0.46 Acres (19,998 SF)

Building RSF: 5,792 SF

Lease Type NNN

Year Built/ Renovated 1961/2017

Options Three - 5 year Options

WASHINGTON AVENUE

WASHINGTON AVENUE

SAWYER STREET

SAWYER STREET

IH-45IH-45

24ELEVEN WASHINGTON24ELEVEN WASHINGTON

2100 MEMORIAL2100 MEMORIAL

MARQUIS LOFTS ON SABINEMARQUIS LOFTS ON SABINEJEFFERSONHEIGHTS APTS

JEFFERSONHEIGHTS APTS

BROADSTONESKYLINE

BROADSTONESKYLINE

CAMDEN CITY CENTRECAMDEN CITY CENTRE

WASHINGTON COURTYARDWASHINGTON COURTYARD

INVESTMENT HIGHLIGHTS

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EXCELLENT RETAIL FUNDAMENTALS: Strong retail submarket boasting a 94.8% average occupancy and a 5-year average rent increase of 19.1%.

HIGH POPULATION GROWTH: Explosive nearby population growth of over 30% since 2010 with 20,000 residents within a 1-mile radius is set to continue with over 2,000 multifamily units currently planned or under construction.

MARKET LEADING MULTIFAMILY OCCUPANCY: Multifamily units within a 1-mile radius are currently operating at an average occupancy of 93%, well above the city-wide average of 89%.

ACCESSIBILITY: The area provides direct access to the city’s two largest Interstate Highways, I-10 and I-45, which will soon be improved as the North Houston Highway Improvement Project begins.

DAYTIME POPULATION: With over 217,000 daytime employees within a 3-mile radius, the properties are ideally situated for their service oriented tenants

LOW MAINTENANCE INVESTMENT: Opportunity to receive stabilized NOI in Year 1 with minimal management responsibility.

PRIME CORNER LOCATION: Investors have the opportunity to purchase both Shell Shack and the neighboring Empower Fitness Lab building which would allow for ownership of nearly an acre of land at one of the submarket’s most notable intersections

E-COMMERCE RESISTANT TENANT BASE: Established restaurant tenancy is resistant to current trends in e-commerce

STATE OF PLACEInnovative retail developments such as Sawyer Yards and Buffalo Heights are helping to give the Lower Washington District a new sense of place

Lower Washington is centrally located in the heart of Americas’ fourth largest city and is surrounded by some of Houston’s most affluent, innovative, and dense neighborhoods

including Washington/Rice Military (1 mile), Montrose (1.5 miles), The Heights (1 mile), and downtown (1 mile). Lower Washington has evolved to be the place for young professionals

to live, work, play, eat and shop because of its superior location, prime retail options and abundant public amenities. The area is 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. In the past eight years alone, the

immediately surrounding population has skyrocketed over 30%.

STRONG DEMOGRAPHICS | DRIVEN BY SURROUNDING QUALITY OF LIFE

W A S H I N G T O N P O R T F O L I O D E M O G R A P H I C S1-mile 3-mile 5-mile

2023 Population Projection 21,766 205,936 452,3822018 Population Estimate 19,573 192,039 425,4192010 Census 15,002 165,170 377,940Percent Change: 2018 to 2023 11.2% 7.2% 6.3%Percent Change: 2010 to 2018 30.5% 16.3% 12.6%2018 Est. Average HH Income $126,213 $129,736 $118,676Total Daytime Employees 19,632 218,215 603,371Bachelor's Degree or Higher 64.0% 52.6% 46.9%Median Age 34.3 37.1 36.4

THE HEIGHTS$400K-2.5M HOME VALUE

THE HEIGHTS$400K-2.5M HOME VALUE

LAZYBROOKTIMBERGROVE

$300K-2.5M HOME VALUE

LAZYBROOKTIMBERGROVE

$300K-2.5M HOME VALUE

CAMP LOGAN$400K-1.4M HOME VALUE

CAMP LOGAN$400K-1.4M HOME VALUE

CRESTWOODGLENCOVE

$500K-2.5M HOME VALUE

CRESTWOODGLENCOVE

$500K-2.5M HOME VALUE

COTTAGE GROVE

$500K-1.5M HOME VALUE

COTTAGE GROVE

$500K-1.5M HOME VALUE

RICE MILITARY$500K-1.5M HOME VALUE

RICE MILITARY$500K-1.5M HOME VALUE

MAGNOLIAGROVE

$250K-1.1M HOME VALUE

MAGNOLIAGROVE

$250K-1.1M HOME VALUE

WOODLANDHEIGHTS

$400K-2.5M HOME VALUE

WOODLANDHEIGHTS

$400K-2.5M HOME VALUE

MEMORIALHEIGHTS

$300K-1+M HOME VALUE

MEMORIALHEIGHTS

$300K-1+M HOME VALUE

OLD SIXTHWARD

$300K-1+M HOME VALUE

OLD SIXTHWARD

$300K-1+M HOME VALUE

FIRSTWARD

$400K - $800K HOME VALUE

FIRSTWARD

$400K - $800K HOME VALUE

MONTROSE$400K-1+M HOME VALUE

MONTROSE$400K-1+M HOME VALUE

RIVEROAKS

2.0M - $15M HOME VALUE

RIVEROAKS

2.0M - $15M HOME VALUE

1-MILE

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DEVELOPMENTS | CHANGING THE WASHINGTON CORRIDOR LANDSCAPE

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Just under a mile west on Washington Avenue,

construction is nearing completion on the Buffalo

Heights mixed-use development. With a 96,000 SF

H-E-B Grocery store, 36,000 SF of boutique office

space, 230 Class-A multi-family units, and 2,000 SF

of additional retail, the development will continue

the urbanization of the Washington District. H-E-B,

Houston’s #1 grocer by market share, will be the first

grocery store along Washington Avenue and will

continue to drive the residential migration to the area.

The project is set to deliver in early 2019.

BUFFALOHEIGHTS

Located just steps away from the Lower Washington

Portfolio is Houston’s newest adaptive reuse

development – Sawyer Yards. Sawyer Yards is

eight city blocks of industrial warehouses, revived

and reimagined as a destination for art, retail, and

entertainment. The repurposed industrial space

features art studios, public galleries, restaurants,

boutique shopping and even a rock-climbing gym.

The addition of Sawyer Yards makes the Washington

Arts District one of the largest arts communities in the

United States. A second phase expansion will include

a new two-story retail property at 1818 Washington

Street that will further increase the walkability and

livability of Lower Washington.

SAWYER YARDS & 1818 WASHINGTON

A mile east on Washington Avenue is the historic

POST building, the subject of a proposed mixed-

use. Situated on 16 acres of land, POST Houston is

a planned redevelopment of the 1.5 million square

foot former Barbara Jordan Post Office in Downtown

Houston. The new project will feature office, retail,

culinary experiences and a music venue. The property

will be a hub for music and entertainment and will

bridge the gap between downtown Houston and Lower

Washington.

POSTHOUSTON

SAWYER YARDS

POST HOUSTON

BUFFALO HEIGHTS

WASHINGTON AVENUEWASHINGTON AVENUE

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SAWYER YARDSRepurposed industrial space that features art studios, public galleries, restaurants and boutique shopping. One of the largest arts communities in the U.S.

24ELEVEN WASHINGTON222 units97% Occupied

1902 WASHINGTON AVERedeveloped retail space on Washington Ave. Surrounded by

studios, award winning restaurants, fitness concepts, breweries

1818WASHINGTON AVEThe second phase of the Sawyer Yards expansion project. Two-story development that includes retail space, office space and rooftop terraces . 6

HOUSTON’S MOST INNOVATIVE DEVELOPMENT CORRIDOR

WASHINGTON AVENUE

CENTER STREET

LUBBOCK STREET

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EDWARDS STREET

SPRING STREET

W DALLAS STREET

MEMORIAL DRIVE

ALLEN PARKWAY

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1-MILE

E X I S T I N G M U LT I - F A M I LY P R O P E R T I E S (1 M I L E R A D I U S )

NAME UNITS OCCUPANCY EFFECTIVE RATE/SF/

MO.

A 2411 Washington 222 96% $1.89

B AMLI 2121 431 94% $1.56

C AMLI City Vista 404 93% $1.62

D AMLI Memorial Heights 380 92% $1.45

E Ashton On West Dallas 244 96% $1.82

F Broadstone Skyline 269 87% $1.95

G Camden Heights 352 94% $1.57

H Elan Heights 326 91% $2.11

I Estates At Memorial Heights 437 95% $1.51

J Hiline Heights 256 95% $1.68

K Jefferson Heights 196 90% $1.77

L Marquis Lofts On Sabine 198 93% $1.66

M Memorial By Windsor 330 98% $2.08

N Memorial Heights At Washington 436 91% $1.55

O Sawyer Heights Lofts 326 93% $1.59

P Siena At Memorial Heights 224 96% $1.70

Q Tinsley On The Park 365 89% $1.93

R The Viv On West Dallas 380 93% $1.50

TOTAL: 5,776 93% $1.70

BUFFALO HEIGHTS BROADSTONE SKYLINE AMLI 2121

2411 WASHINGTON

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SURROUNDING MULTI-FAMILY

Shell Shack is located in the Inner Loop/River Oaks retail submarket, which is defined by I-69 & I-10 to the North & South and I-45 & I-610 to the East and West. Due to it’s service of Houston’s most affluent residential neighborhoods and younger demographics, this submarket is one of the tightest and best performing in the Houston MSA. The submarket is perfectly positioned to excel in 2019 as new developments and projects will attract Houstonians and visitors to the already bustling neighborhood.

RETAIL BY THE NUMBERS

Inventory: 12,200,000 SF

Occupancy: 94.8%

Rental Rates: Asking rental rates have increased 19.1% since 3Q2013 to $30.48 NNN at the end of 3Q2018

Absorption: The submarket has seen over 230,000 SF of total net absorption over the last 3 years

Deliveries: With over 12 million square feet of NRA, the submarket has only seen 120,000 SF of new deliveries since the beginning of 2017

Houston Inner Loop/River Oaks

INVENTORY

Buildings 13,779 1,198Total GLA (SF) 342,049,867 12,179,143

VACANCY

Direct SF 18,277,150 633,002

Total SF 18,532,466 637,728

Vacant 5.4% 5.2%

Net Absorbtion

Q3 2018 1,190,122 -12,899T-12 4,442,477 -132,650

Deliveries

Q3 2018 1,240,274 9,854T-12 4,421,681 44,352

Under Construction

Buildings 127 2Total GLA 3,782,700 8,462

Rental Rates

Avg. Quoted Rent $17.02 $30.48

HOUSTON RETAIL OVERVIEW

#1 in Retail Investment Returns on 10-Year Hold Basis according to The National Council of Real Estate Investment (NCREIF). Houston retail fundamentals remain strong driven by nation leading employment and population growth.

HOUSTON RETAIL MARKETThe Houston retail market remained strong during the third quarter of 2018, with the majority of market fundamentals remaining constant or improving since the end of 2017. The vacancy rate remained at 5.4% at the end of the third quarter. Net absorption in 3Q 2018 was a positive 1,190,122 SF. Quoted rental rates increased from the third quarter 2018, ended at $17.02 per square foot per year. A total of 54 buildings with 1,240,274 square feet of retail space were delivered to the market during the quarter, with over 3.7 million square feet under construction across the Houston MSA at the end of the quarter.

INVENTORY AND CONSTRUCTIONDuring the third quarter of 2018, 54 buildings totaling 1,240,274 square feet were completed in the Houston retail market. Over the past four quarters, a total of 4.4 million square feet of retail space has been delivered in Houston. There was 3.7 million square feet of retail space under construction at the end of the third quarter of 2018. Total retail inventory in the Houston market area amounted to over 342 million square feet in 13,779 buildings.

NET ABSORPTION Retail net absorption was solid in Houston third quarter 2018, with a positive 1,190,122 square feet, marking Houston’s 37th consecutive quarter of positive net absorption. In the second quarter 2018, net absorption was 522,618 square feet. In the first quarter 2018, net absorption was 1.1 million while in the fourth quarter of 2017, absorption came in at positive 1.6 million square feet in the market.

VACANCY Over the past four quarters, the market vacancy rate has remained largely unchanged, with the rate holding constant at 5.4% from the end of 2017 through the third quarter of 2018. Vacancy rates in Houston are expected to decrease to as low as 4.9% in 2019.

RENTAL RATES Average quoted asking rental rates in the Houston Retail Market have grown moderately over previous quarters. Quoted rents ended the third quarter of 2018 at $17.02 per square foot per year. That compares to $16.80 per square foot in the second quarter 2018, $16.59 per square foot in the first quarter of 2018, and $16.35 per square foot at the end of the fourth quarter 2017. This represents an 1% increase in rental rates in the current quarter, and a 5% increase from four quarters ago.

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I N V E S T M E N T A D V I S O R YRYAN WESTSenior Managing DirectorT. (713) 852-3535ryan.west@am.jll.com

JOHN INDELLIDirectorT. (713) 852-3407john.indelli@am.jll.com

CHARLES STRUASSReal Estate AnalystT. (713) 212-6574charles.strauss@am.jll.com

ETHAN GOLDBERGReal Estate AnalystT. (713) 212-6549ethan.goldberg@am.jll.com

BRYAN STRODEResearch AnalystT. (713) 212-6551bryan.strode@am.jll.com

F I N A N C I N GI N Q U I R I E S

MICHAEL JOHNSONDirector

T. (713) 852-3474michael.johnson@am.jll.com

Jones Lang LaSalle Americas, Inc. or its state-licensed affiliate (“JLL”) has been engaged by the owner of the property [properties] to market it [them] for [sale] [lease]. Information concerning the property [properties] described herein has been obtained from sources other than JLL, and neither Owner nor JLL, nor their respective equity holders, officers, directors, employees and agents makes any representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all reference 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 purchaser. JLL and owner disclaim any liability that may be based upon or related to the information contained herein. Prospective purchasers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change. The Property may be withdrawn without notice. If the recipient of this information has signed a confidentiality agreement regarding this matter, this information is subject to the terms of that agreement. ©[INSERT CURRENT YEAR]. Jones Lang LaSalle IP, Inc. All rights reserved.

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