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ONE NORTHWIND PLAZAHouston, Texas

1 ■ ONE NORTHWIND PLAZA // OFFERING MEMORANDUM

The Offering

JLL Capital Markets, as exclusive advisor to the owner of 7600 West Tidwell (“The Property”), is pleased to present the opportunity to acquire the fee-simple interest in the 141,480 square foot Class B office building prominently located in the Highway 290 Corridor of Houston, Texas. The Property benefits from being highly visible and accessible from both the intersection of West Tidwell and Highway 290, and Hollister Street and Highway 290. The Property is institutionally owned and maintained, with recent capital improvements totaling in excess of $1.0 million and very little ongoing capital needs.

The Property is one of the top three buildings in the submarket and at 71.4% leased today, the Offering provides a unique value add opportunity with significant upside at a significant discount to replacement cost.

The PropertyAddress 7600 W. Tidwell

Houston, TX 77040

MSA Houston-Sugar Land-Baytown

Submarket Northwest Houston

Building Class Class B

Square Footage 141,480

Leased 71.4%

Floor Plates 18,000 RSF

Year Completed 1980 / 2006 (renovated)

Site Size (approximate) 3.0 acres

Parking Spaces 510 - 489 garage, 21 surface

Parking Ratio 3.6/1,000

2■ ONE NORTHWIND PLAZA // OFFERING MEMORANDUM

I N V E STM E N T H IG H L IG H T SFinancial Highlights

▪ Diverse rent roll with resilient and stable industry composition. The average tenant size is approximately 6,618 sf, offering a cash flow that is isolated from reliance on any single tenant or industry.

▪ 71.4% leased with an average remaining term of 3 years and average in-place rents of $17.33 psf, offering a substantial value-add proposition.

▪ In-place rents are near market, allowing for tangible mark-to-market rent growth at starting rents that will not result in “sticker shock.”

▪ The largest five tenants make up 61% of the in-place occupancy (43.5% of NRA), have 3.4 years of average remaining term, and an average in-place rent of $17.25 psf.

▪ Speculative revenue is modeled conservatively with only 30,000 square feet being absorbed over a 36-month period (7.4% static vacancy).

▪ Significant NOI growth despite very conservative rent growth, absorption, property tax, and market leasing assumptions.

Lease Expiration

12,955 SF

8,148 SF

39,915 SF

9,366 SF7,382 SF

21,511 SF

0%

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60%

80%

100%

120%

0 SF

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10,000 SF

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20,000 SF

25,000 SF

30,000 SF

35,000 SF

40,000 SF

45,000 SF

FY 1 FY 2 FY 3 FY 4 FY 5 FY 6

SF Exp. Annually % Exp. Cumulatively


Strategic, Ever-Improving LocationThe completion of the Highway 290 construction will transform the Northwest office market, providing unparalleled access to Houston’s stable and growing population in North and Northwest Houston. One Northwind Plaza will be a major benefactor of this highway transformation, offering tenants shorter commutes and lower occupancy costs than competing submarkets. The overall vision for the U.S. 290 Project includes freeway capacity reconstruction and widening from IH 610 to FM 2920.

3

CONSTRUCTION PROGRESS

Project K 97% completeProject substantially completed in 2016.

Project J-2 72% completeDemolition of the former inbound mainlane bridge structure at Dacoma is complete and the contractor is working on constructing the new inbound mainlanes.

Project J-1 91% completeThe new I-10 direct connector to US 290 and I-610 is open. The new continuous I-610 northbound frontage road over the railroad tracks and Hempstead is now open.

Project I 75% completeRoadway pavement work on the inbound mainlanes from Pinemont to West 34th and construction of the bridge structures over Bingle and West 43rd is underway. Construction continues on the outbound frontage sound wall barrier adjacent to the Oak Forest subdivision.

Project H 66% completeCrews have completed roadway pavement for the middle portion of the US 290 mainlanes from West Little York to Fairbanks North Houston. Construction of the inbound frontage road from West Little York to Fairbanks North Houston continues.

Project G 91% completeThe contractor completed Next Generation Concrete Surface work, which involved grinding and grooving the concrete surface to reduce pavement/tire noise.

Project F 61% completeCrews are installing storm sewers on the outbound frontage road. Mainlane work is underway on the outbound side.

Project E 50% completeWith motorists moved onto new outbound frontage road pavement between FM 1960 and Huffmeister, crews are working on retaining walls for the outbound mainlanes. Utility lines along SH 6/FM 1960 are being moved. Inbound traffic was shifted to the south, making room for current construction of the outbound mainlanes.

Project D 79% completeCrews are building new roadway pavement for the middle portion of the mainlanes from east of Mueschke to Barker Cypress. Work continues on the outbound frontage sound wall barrier adjacent to the Cypress Mill Estates subdivision.

Project C-1 67% completeConstruction continues on inbound and outbound mainlane pavement widening. Construction on Mueschke Road under US 290 is complete.

Project C-2 76% completeBridge widenings at Mason and Bauer are complete. Construction continues on inbound and outbound mainlane pavement widening.

Project B 57% completeAll inbound bridge structure widenings over cross streets are complete. Crews are working to complete widening of US 290 inbound mainlanes.

Project A 74% completeMost of the inbound mainlane bridge structure widenings over cross streets are complete. Construction continues on pavement widening for the inbound mainlanes.

3

2018

Finish Line

Project continues toward substantial completion of the US 290 Corridor in

2018.

CONSTRUCTION PROGRESS

Project K 97% complete

Project J-2 72% complete

Project J-1 91% complete

Project I 75% complete

Project H 66% complete

Project G 91% complete

Project F 61% complete

Project E 50% complete

Project D 79% complete

Project C-1 67% complete

Project C-2 76% complete

Project B 57% complete

Project A 74% complete

▪ Five/six general-purpose lanes in each direction from IH 610 to just west of State Highway 6, plus auxiliary lanes where appropriate ▪ Four general-purpose lanes in each direction from just west of State Highway 6 to near State Highway 99 (Grand Parkway), plus auxiliary lanes ▪ Three general-purpose lanes in each direction from near Grand Parkway to the west study limit, plus auxiliary lanes ▪ Two- or three-lane frontage roads in each direction throughout the corridor ▪ A four-lane, two-way managed lanes facility along Hempstead Tollway from IH 610 to Grand Parkway ▪ Two non-tolled frontage road lanes in each direction to be reconstructed along Hempstead Tollway from IH 610 to Beltway 8 ▪ Two non-tolled frontage road lanes in each direction to be reconstructed along Hempstead Tollway from IH 610 to Beltway 8 ▪ Proposed high-capacity transit corridor located along Hempstead Tollway ▪ Proposed high-capacity transit corridor located along Hempstead Tollway

Please visit http://www.my290.com for a complete description of the US 290 expansion program


Significant Capital ImprovementsThe Property has been well-maintained by institutional ownership, who has invested significant capital improvements totaling over $1million over the last four years. With all of the necessary capital improvements substantially completed and very low historical leasing costs, One Northwind Plaza provides attractive cash-on-cash yields and value-add potential.

Incomparable AccessibilityOne Northwind Plaza is strategically located near the intersection of Highway 290 and both West Tidwell (a major east/west thoroughfare) and Hollister Street (a major north/south thoroughfare). West Sam Houston Parkway (Beltway 8), an 88 mile beltway around the City of Houston, is three miles or approximately four minutes west of the Property. This location offers the best access and visibility in the Northwest office market, remarkable access in and out of the city, and is convenient to all of Houston’s major business centers. Downtown Houston and the Galleria area are accessible within a convenient 10-minute drive. Within a 5-mile radius are abundant eateries, retail, and services, saving tenants and residents valuable time and effort. These factors position the Property as a low-cost alternative to nearby submarkets, and allow One Northwind Plaza to be a market-leader in terms of rental rates, occupancy, and tenant retention.

In June 2011, construction began at the IH 610 / U.S. 290 interchange that will change the landscape of central Houston for the better. As of Q2’2017, the IH 610 / U.S. 290 interchange is substantially complete, offering improved drive times to the Galleria, CBD, Memorial City, and Energy Corridor with far less congestion.

Capital Invested - 2010-20172010-2017

Fire SprinkleringLighting Retrofit

$ 175,000187,500

2013

Lobby Directory 13,000

2014

Breezeway Refurbished w/New Canopy & Lighting 59,000

2015Automated Logic Web Based System 12,000

2016

Elevator ModernizationLED Signage on Building Eyebrow

525,00042,000

TOTAL $1,013,500


Amenities for the Property include:

■ On-site management

■ On-site conference room and deli

■ On-site security - 24 hour/day

■ Card key after-hours access

■ Convenient shopping, restaurants and hotels

■ Excellent Northwest Freeway location near West Sam Houston Parkway and Loop 610

■ World class fitness center just steps away

■ Signage available

■ Model suites ready for move-in

■ Garage parking with covered access to the building

■ Excellent access

■ Free visitor parking in front of building


1400 Post Oak Blvd., Suite 1200Houston, TX 77056

Rudy HubbardManaging Director

+1 713 425 [email protected]

Kevin McConnSenior Vice President


Rick GoingsVice President


Further information is available from the seller's exclusive representatives:

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