Walnut Creek Office Park Cameron Road, Austin, TX OFFERING MEMORANDUM

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1 8101 Cameron Road, Austin, TX OFFERING MEMORANDUM

2 Walnut Creek Office Park EXECUTIVE SUMMARY Offering Summary As an exclusive agent for the Owner, Tarantino Properties, Inc is pleased to offer the opportunity to purchase the Walnut Creek Office Park located at 8101 Cameron Road in Austin, Texas. The Offering includes Fee Simple Ownerships of a 34,088 square-foot flex office project that is 91% Leased. The property was built in 1984 and is offered at a price well below replacement value. EXISTING CASH FLOW: The Property is currently 91% Leased with NNN Lease structures. With lease rates averaging under $11 per square-foot per year plus NNNs, Walnut Creek Office Park offers value lease space. The building type, if built brand new, would require rents in the mid-teens plus NNN, making the asset difficult to replace. With with typical units of 1,000 square-feet, the tenancy of the property is generally stable and easily re-leased with limited finish out costs. EXCELLENT POSITION WITHIN THE MARKET: Located at the hard corner of Cameron Road and Rutherford Drive, the property is highly visible at the lighted intersection. Easily accessible from the west and north sides of the property, the location is minutes away from major highways, Interstate 35, Hwy 183, Hwy and the 130 Tollway and just 10 minutes from Downtown Austin. For users requiring a central Austin location and needing to access a large area across the region, this location is excellent. FLEXIBLE SPACES: One hundred percent of the property spaces are built out and conditioned. Each space in building 3 offers grade level doors for users. The spaces in buildings 1 and 2 are easily adjoined as tenant require spaces larger than 1,000 square-feet, with building 1 having significant retail visibility to Cameron Road. 2 Walnut Creek Office Park Tarantino Properties, Inc.

3 EXECUTIVE SUMMARY Property Overview Address Walnut Creek Office Park 8101 Cameron Road Austin, TX Price $4,750,000 Price/SF $139 CAP Rate (In Place) 6.75% CAP Rate Proforma 7.30% Description Office/ Flex Space for Lease Building Size/SF 34,000 Acres Approximately 2.91 Occupancy 91% Avg. Rent In-Place / Per SF 24-Hour Traffic Counts (Cameron and Rutherford) $10.88 PSF +/- 40,870 vehicles per day along Cameron Road and Rutherford Lane Nearby 5 Mile Demographics 2016 EST. Population 317,136 No. of Households 125,388 Avg. Household Income $44,905 3 Walnut Creek Office Park Tarantino Properties, Inc.

4 LOCATION Aerial 4 Walnut Creek Office Park Tarantino Properties, Inc.

5 Walnut Creek Office Park LOCATION Aerial Au sti n C D B 35 I 3 5 F ro n t a g e Rd 35 ont 0 Fr 9 2. U. S d age R ro n 90 F U. S. 2 tage Rd 35 I 3 5 F ro n t a ge R d A son nder Ln E Ln ford r e h Rut rso Ande n Ln E WALNUT CREEK OFFICE PARK Ln rford e h t Ru Ca me ron Rd Cr ee kd r Rutherf ord Ln Dr nter e C k Par Ce nt re Ca me ron Cross P ark Dr ark ss P o r C 5 Dr Walnut Creek Office Park Tarantino Properties, Inc. Co nno r Cross P ark Dr Rd Dr

6 LOCATION Area Map Anderson Ln E I35 Frontage Rd Anderson Ln E Rutherford Rd Walmart Supercenter WALNUT CREEK OFFICE PARK Cameron Rd CLEAR CREEK ESTATES PARKER ACRES ADESA Austin Webb Middle School Anderson Ln E TU BUSI nd 69 I35 Frontage Rd 35 US Social Security Administration 69 Cameron Rd Reagan High School Nelson Field CORONADO HILLS 183 Anderson Ln E 6 Walnut Creek Office Park Tarantino Properties, Inc.

7 Walnut Creek Office Park LOCATION Site Plan 7 Walnut Creek Office Park Tarantino Properties, Inc.

8 LOCATION Site Plan 8 Walnut Creek Office Park Tarantino Properties, Inc.

9 AUSTIN SUBMARKET OVERVIEW AUSTIN OFFICE MARKET OVERVIEW The Austin office market is comprised of 96,904,284 square feet of space found in 4,650 buildings. With a total of 3,391,649 square feet available for lease, the Austin office area is 96.5% occupied. A total 225,553 square feet of absorption has been recorded for 2017 and the average rental rate remains steady at $32.47 NNN. Approximately 3,842,183 square feet of space is under construction and 297,684 square feet of space is expected to be delivered by the end of the second quarter in AUSTIN FLEX MARKET OVERVIEW The Austin flex market is comprised of 99,481,394 square feet of space found in 4,061 buildings. With a total 5,968,883 SF of square feet available for lease, the Austin flex area is 94% occupied. A total of negative 198,652 square feet of absorption has been recorded for 2017 and the average rental rate remains steady at $9.51 NNN. A total of 22 buildings were delivered to the market in the first quarter totaling 1,132,037 square feet, with 1,518,183 square feet still under construction at the end of the quarter in AUSTIN OFFICE MARKET OVERVIEW AUSTIN FLEX MARKET OVERVIEW 9 Walnut Creek Office Park Tarantino Properties, Inc.

10 FINANCIALS Rent Roll SUITE TENANT LEASE FROM LEASE TO SF MONTHLY BASE RENT ANNUAL RENT PER SF EXPENSE RECOVERY DEPOSIT 101 Get Up Project 10/20/ /31/2018 1,000 $ $11.64 NNN $1, State Farm 10/1/2012 9/30/ $ $9.75 NNN $1, Homeland Staffing, Inc 8/15/2014 8/31/2017 1,000 $ $11.04 NNN $1, The Wright House 5/1/2012 9/30/2020 3,000 $2, $10.00 NNN $3, Dr. Patsy Jones 3/1/2017 2/28/2019 1,000 $ $10.00 NNN $1, VACANT - - 1,000 $ - $ - - $ BBM Online - Staffing - 4/30/2018 1,300 $1, $10.00 NNN $ Estafeta 3/1/2017 2/29/2020 1,000 $ $10.00 NNN $1, National Elevator Industry 5/27/2015 7/31/2020 2,600 $3, $15.27 NNN $1, River Blue International, LLC - 2/29/2020 1,000 $1, $12.00 NNN $ Star Delivery - 3/31/ $ $10.43 NNN $ New Birth By Faith 6/1/2015 6/30/2017 1,388 $1, $10.60 NNN $ Makeup Squared 6/1/2015 5/31/ $ $9.25 NNN $ Signed LOI - 5 Year 1,300 $ - $ - NNN $ Oleta Miller - 2/28/2019 1,000 $ $10.00 NNN $ VACANT $ - $ - $ - CONTINUE ON PAGE Walnut Creek Office Park Tarantino Properties, Inc.

11 FINANCIALS Rent Roll (Continue) SUITE TENANT LEASE FROM LEASE TO SF MONTHLY BASE RENT ANNUAL RENT PER SF EXPENSE RECOVERY DEPOSIT 210 Jese Webb 8/1/2016 7/31/ $ $11.00 NNN $ Floorplan Xpress 9/1/2012 8/30/2018 1,000 $1, $12.00 NNN $1, Truly Nolan of America 2/8/2016 2/28/2018 1,000 $ $11.50 NNN $ Raul Machado 9/13/ /31/2017 1,000 $1, $14.00 NNN $1, , 305 A Family of New Beginnings 3/1/2015 3/31/2018 2,000 $1, $9.00 NNN $2, Nippon Express 9/1/2012 8/31/2018 1,000 $ $11.25 NNN $ , 308 Best Choice Roofing 6/1/2014 5/31/2019 2,000 $1, $10.00 NNN $1, WellsTorrones, LLC 10/15/ /14/2018 1,000 $ $11.00 NNN $1, Lifesource Water Systems 4/1/2015 4/30/2018 1,000 $ $11.00 NNN $1, Terra Imports, LLC 7/1/2014 6/30/2017 1,000 $ $10.56 NNN $1, MCH Painting, Inc. 4/1/2013 3/31/2018 2,000 $1, $8.75 NNN $ Applied Technology 6/1/2015 5/31/2017 1,000 $ $11.00 NNN $1, TOTAL 34,088 $28, Walnut Creek Office Park Tarantino Properties, Inc.

12 FINANCIALS Operating Expenses ACTUALS (YE 2016) PROFORMA CATEGORY ANNUAL PER SF ANNUAL PER SF Administrative $ $0.03 $ $0.03 Management Fee $19, $0.57 $21, $0.64 Contract Services $19, $0.58 $19, $0.58 Payroll $8, $0.25 $8, $0.25 Repairs and Maintenance $10, $0.29 $10, $0.29 Utilities $31, $0.93 $31, $0.93 Taxes $94, $2.77 $94, $2.77 Insurance $7, $0.23 $7, $0.23 TOTAL EXPENSES $191, $5.65 $194, $ Walnut Creek Office Park Tarantino Properties, Inc.

13 FINANCIALS Cash Flow Analysis YEAR ENDED YEAR 1 AUG-18 YEAR 2 AUG-19 YEAR 3 AUG-20 YEAR 4 AUG-21 YEAR 5 AUG-22 YEAR 6 AUG-23 YEAR 7 AUG-24 YEAR 8 AUG-25 YEAR 9 AUG-26 YEAR 10 AUG-27 YEAR 11 AUG-28 Potential Gross Revenue Scheduled Base Rent 364, , , , , , , , , , ,331 Cam Collections 189, , , , , , , , , , ,208 Other Income 5,271 5,429 5,592 5,760 5,933 6,111 6,294 6,483 6,677 6,877 7,084 Total Potential Gross Income $ 558,780 $ 556,245 $ 567,824 $ 598,622 $ 612,804 $ 611,102 $ 616,946 $ 625,798 $ 625,011 $ 635,342 $ 640,623 General Vacancy (27,939) (27,812) (28,391) (29,931) (30,640) (30,555) (30,847) (31,) (31,251) (31,767) (32,031) Effective Gross Income 530, , , , , , , , , , ,592 Operating Expenses Admin (990) (1,010) (1,030) (1,051) (1,072) (1,093) (1,115) (1,137) (1,160) (1,183) (1,207) Contract (20,076) (20,478) (20,887) (21,305) (21,731) (22,166) (22,609) (23,061) (23,522) (23,993) (24,473) Personnel (8,641) (8,814) (8,990) (9,170) (9,353) (9,540) (9,731) (9,926) (10,124) (10,327) (10,533) Repairs & Maintenance (10,215) (10,419) (10,628) (10,840) (11,057) (11,278) (11,504) (11,734) (11,969) (12,208) (12,452) Utilities (32,178) (32,822) (33,478) (34,148) (34,831) (35,527) (36,238) (36,962) (37,702) (38,456) (39,225) Management Fee (23,469) (24,384) (25,335) (26,323) (27,350) (28,417) (29,525) (30,676) (31,873) (33,116) (34,407) Property Taxes (95,966) (97,885) (99,843) (101,840) (103,877) (105,954) (108,073) (110,235) (112,439) (114,688) (116,982) Insurance (7,945) (8,104) (8,266) (8,431) (8,600) (8,772) (8,947) (9,126) (9,309) (9,495) (9,685) Total Operating Expenses (199,480) (203,916) (208,457) (213,108) (217,870) (222,747) (227,742) (232,858) (238,098) (243,465) (248,964) Net Operating Income 331, , , , , , , , , , ,628 TI/LC Projected TI (19,182) (11,550) (17,682) (30,900) (9,450) (29,082) (19,050) (15,132) (27,900) (13,050) (25,032) Projected Leasing Commissions (8,934) (6,052) (9,130) (16,255) (4,880) (15,228) (9,925) (7,814) (14,618) (6,826) (13,137) Projected TI and LC ($28,116) ($17,602) ($26,812) ($47,155) ($14,330) ($44,310) ($28,975) ($22,946) ($42,518) ($19,876) ($38,169) Cash Flow For Debt Service $ 303,245 $ 306,915 $ 304,163 $ 308,428 $ 349,964 $ 313,490 $ 329,383 $ 338,705 $ 313,145 $ 340,233 $ 321, Walnut Creek Office Park Tarantino Properties, Inc.

14 FINANCIALS Assumptions ANALYSIS BEGINS SEPTEMBER 1,2017 Annual Rent Inflation 3.50% Annual Expense Inflation 2% Management Fee 4% Tenant Improvements: New Renew All Space $3.00 $1.00 Leasing Commissions: New Renew All Space 5% 2% General Vacancy: 5% Turn Over Months Vacant Percent Renew Terms in Years Flex Office 4 75% Walnut Creek Office Park Tarantino Properties, Inc.

15 502 E 11th Suite 400 Austin, Texas Nick Tarantino, CCIM Vice President nick@tarantino.com Devony Wilmot New Business devony@tarantino.com Austin Houston - Corporate Office 7887 San Felipe Suite 237 Houston, Texas Dallas 606 N. Central Expy Suite 560 Dallas, Texas San Antonio Cimarron Path Suite 122 San Antonio, Texas