CONN S APPLIANCES LEASEHOLD FOR SALE. Cap Rate: 11% Price: $1,455,000. Major Metro Location in Houston, Texas. 22 years Remain on Leased Interest

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1 CONN S APPLIANCES LEASEHOLD FOR SALE Major Metro Location in Houston, Texas 22 years Remain on Leased Interest Subject is Part of 410,000 SF First Colony Commons Below Market Rents Boost Renewal Likelihood Asset is Fully Depreciable Southwest Freeway, Sugar Land, TX STUART SCHEINHOLTZ Vice President (415) stuart@batterycommercial.com DRE License # Price: $1,455,000 Cap Rate: 11% THE INFORMATION SET FORTH HEREIN HAS BEEN RECEIVED BY US FROM SOURCES WE BELIEVE TO BE RELIABLE, BUT WE HAVE MADE NO INDEPENDENT INVESTIGATION OF THE ACCURACY OR COMPLETENESS OF ANY FIGURES AND MAKE NO REPRESENTATIONS WITH RESPECT THERETO. THE INFORMATION HEREIN IS SUBMITTED SUBJECT TO ERRORS, PRIOR SALE OR LEASE, CHANGE IN STATUS OR WITHDRAWAL WITHOUT NOTICE. BUYER MUST VERIFY THE INFORMATION AND BEARS ALL RISK FOR ANY INACCURACIES.

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3 INVESTMENT SUMMARY Price: $1,455,000 NOI: $160,000 Cap Rate: 11% Building Size: 50,000 SF Year Built: 1992 Financing: Property is debt free

4 Master Lease Summary Base Term: Expires 2/28/2018 Current Rent: $215,000 ($4.30/SF) Options: Four 5-year options as follows: Option #1: 3/1/2018 at $240,000 ($4.30/SF) Option #2: 3/1/2023 at $265,000 ($5.30/SF) Option #3: 3/1/2028 at $290,000 ($5.80/SF) Option #4: 3/1/2033 at $315,000 ($6.30/SF) Option Term Exp.: 2/28/2038 Percentage Rent: None NNN Charges: Pro rata share; Landlord to maintain insurance at its cost

5 Conn s Appliances Lease Summary GLA: 50,000 SF Base Term: Expires 2/27/2018 Current Rent: $375,000 ($7.50/SF) Options: Four 5-year options as follows: Option #1: 2/28/2018 at $412,500 ($8.25/SF) Option #2: 2/28/2023 at $450,000 ($9.00/SF) Option #3: 2/28/2028 at $487,500 ($9.75/SF) Option #4: 2/28/2033 at $525,000 ($10.50/SF) Option Term Exp.: 2/27/2038 CAM Reimb.: Pro rata share Taxes & Ins.: Pro rata share

6 ABOUT THE TENANT CONN s Conn's, Inc. operates as a specialty retailer of durable consumer goods and related services in the United States. The company s stores provide home appliances such as refrigerators, freezers, washers, dryers, dishwashers, and ranges; home furniture and mattress, including furniture and related accessories for the living room, dining room, and bedroom, as well as traditional and specialty mattresses; and home office products consisting of computers, tablets, printers, and accessories. Its stores also offer consumer electronics, such as televisions; home theater and video game products; digital cameras; and portable audio equipment. Conn's, Inc. also offers repair service agreements, installment credit plans, and various credit insurance products. As of March 31, 2015, the company operated approximately 89 retail locations in Arizona, Colorado, Louisiana, Mississippi, Nevada, New Mexico, Oklahoma, South Carolina, Tennessee, and Texas. Conn s, Inc. was founded in 1890 and is based in The Woodlands, Texas. The company is publicly traded on NASDAQ ( CONN ) and has a market capitalization of about $1.9 billion. Conn s has an S&P rating of B.

7 ABOUT THE AREA The subject property is part of First Colony Commons, a 410,000 SF shopping center which is the gateway to the Sugar Land master planned community. First Colony Commons is a multi-anchored regional power center with notable retailers including Home Depot, Office Depot, Michaels and Babies 'R' Us. The property also includes various inline tenants such as Hallmark, Jason's Deli, Jenny Craig, Chili s, Marble Slab, Outback Steakhouse, Today's Vision and Stomping Ground Playland. The property is ideally positioned at US Hwy 59 (aka Southwest Freeway) and Williams Trace Boulevard. This location has unobstructed freeway exposure with over 167,000 cars per day, 258,419 residents within a 5-mile radius and an average household income of $93,978. Located 20 minutes southwest of Houston, Sugar Land has been named one of the nation s best places to live and work.

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9 Sugar Land, TX Sugar Land is a suburb of Houston, TX, in Fort Bend County, located about 20 miles southwest of downtown. It is one of the most affluent and fastest-growing cities in Texas, having grown more than 158% in the last decade. During the period of , Sugar Land also enjoyed a 46.2% job growth. As of the 2010 census, its population was 78,817. In 2013, the U.S. Census Bureau estimated that the city's population was 83,860, with a median family income of $113,261 and a median home price of $369,600. Founded as a sugar plantation in the early mid-20th century and incorporated in 1959, Sugar Land is the largest city and economic center of Fort Bend County. The city is the third-largest in population and second-largest in economic activities within the Houston area. Sugar Land is home to the headquarters of Imperial Sugar and the company's main sugar refinery and distribution center was once located here. The city is also the national headquarters of CVR Energy, Inc., as well as numerous international energy, software, engineering, and product firms.

10 DEMOGRAPHIC SUMMARY Population Average Household Income 1 Mile 3 Mile 5 Mile 10,093 84, ,862 $82,926 $116,802 $105,315

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13 TENANT SPACE TENANT NAME AREA 1 CONTINENTAL CLEANERS 2,415 S.F. 2 STATE FARM INSURANCE 1,050 S.F. SPACE SUPERCUTS 1,400 S.F. 4 4 DR. BRHRAMJI MEHTA, DDS 2,380 S.F. 5 5 FIRST NAIL SALON 1,400 S.F. 6-7 MARCO'S PIZZA 1,650 S.F. 8 MATHNASIUM 1,000 S.F. 9 AVAILABLE 1,500 S.F. 10 MARBLE SLAB 1,012 S.F. 11 MULTI-MEDICAL EQ. & SUPPLIES 12 HALLMARK 13 CONN'S 36,748 S.F. 14 TUESDAY MORNING 13,507 S.F. 15 OUTBACK STEAKHOUSE 6,000 S.F. 16 QUEST DIAGNOSTICS 2,662 S.F. 17 AVAILABLE 2,250 S.F. 18 TAQUERIA MEXICANO GRILL 2,250 S.F. 19 AVAILABLE 20 JASON'S DELI 4,390 S.F. 21 MEDIFAST 1,700 S.F. 22 LOW T CENTER 1,685 S.F. 23 AVAILABLE 24 FREEBIRDS 2,600 S.F. 25 SCHLOTZSKY'S DELI 3,040 S.F. 26 ARMSTRONG McCALL BEAUTY SUPPLY 1,463 S.F. 27 BOMBAY PALACE 3,500 S.F. IMAGE SALON STUDIOS 12,857 S.F. 6-7 CONN'S 8 TUESDAY MORNING 13,507 SF 36,748 SF WILLIAMS TR ACE BOULEV ARD I FF O CE 35 P DE,4 10 T O SF 'S EL M A F H 0S IC 30, jason's deli HOME DEPOT 182,250 SF ,050 S.F. 5,400 S.F. 2,475 S.F. 3,971 S.F. 30 LESLIE'S POOLMART 2,000 S.F. 31 PIXEL STUDIOS 1,980 S.F. 32 TODAY'S VISION 3,975 S.F. 33 AVAILABLE 34 CHILI'S 5,613 S.F. 35 1/2 PRICE BOXES 1,050 S.F. 36 NEWHOMEPROGRAMS.COM 1,400 S.F. 37 OFFICE DEPOT 35,410 S.F. 38 MICHAELS 30,240 S.F. 39 STOMPING GROUNDS PLAYLAND 7,461 S.F. 40 IMAGE SALON 5,250 S.F. 41 ALING'S 3,990 S.F. 42 CPR CELL PHONE REPAIR 1,050 S.F. 43 LUMINOUS TRENDS 44 LESLIE'S POOL SUPPLIES 45 HOME DEPOT 46 AL'S FORMAL WEAR 1,231 S.F. 47 JENNY CRAIG 2,136 S.F. 48 SUGARLAND PC.com 49 NIGHT LIGHT AFTER HOURS PED. 50 BABIES R US 2,500 S.F. 2,450 S.F. 2,450 S.F. 102,250 S.F. 1,050 S.F. 3,850 S.F. 41,462 S.F. BABIES R US ,462 SF ' 2200' 4400' FIRST COLONY COMMONS SOUTHWEST FREEWAY SUGAR LAND, TX chili's THE CONFIGURATION OF BUILDINGS AND TENANT OCCUPANCY OR OWNERSHIP SHOWN ON THE PLAN ARE SUBJECT TO CHANGE WITHOUT NOTICE AND THERE ARE NO DIRECT OR IMPLIED REPRESENTATIONS CONTAINED HEREIN CONCERNING SAID CONFIGURATION OR TENANTS MUST OCCUPANCY OR OWNERSHIP, TENANTS MUST VERIFY DIMENSIONS. C 2013 ZIMMER CONSULTANTS, LTD ALL RIGHTS RESERVED HIGHWAY 59 SOUTH COVINGTON LEASE PLAN REALTY PARTNERS N 26

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