Parkside Project/Market Overview

Irving, Texas (S.H. 114 @ Beltline Road) Property:

The Parkside development consists of three parcels (375 Acres), located south of State Highway 114 between Shorthorn and Esters Boulevard, will be developed by Hines Interests, LP.

Market Overview:

Hines has been extremely active in the Las Colinas area of Irving since 2006 (acquisition of ~600 net acres of land purchased from TIAA CREF (Teachers)) and developing the following 10 single-family residential communities:

Development Location Lots La Villita Irving, TX 300 Riverside Village Irving, TX 400 Lakes of Las Colinas

Irving, TX 265

Villas at Emerald Park

Irving, TX 92

Enclave at Riverside Village

Irving, TX 64

Villas at the Studios

Irving, TX 59

The Bridges at Las Colinas

Irving, TX 402

Campion Hollows Irving, TX 121 Parkside Irving, TX 873 TOTAL Irving, TX 2576

Over the past seven years and including the economic downturn (2008-2012), Hines has experienced strong demand for higher-end product in Las Colinas (100+ lots/year – average). Hines attributes the demand to several key factors:

Location: The Las Colinas area is located in the center of DFW Metroplex and is approximately 7 miles from Dallas CBD, 5 miles from DFW Airport, and 5 miles from Dallas Galleria. Many homebuyers also work in the Las Colinas office market or utilize the DFW Airport frequently.

School: The majority of the Hines developments are located in either Carrollton-Farmers Branch ISD or Coppell ISD. Both of which are strong school districts that homebuilders celebrate in their respective marketing.

Quality Municipalities: The Las Colinas developments are governed by the City of Irving, Las Colinas Association, and Dallas County Utilities and Reclamation District (DCURD). Hines has worked with each entity noted above on developments to ensure the quality of the area is carried through the development process with a workable future.

Parkside Overview:

The Parkside Development is expected to add approximately 873, single-family detached homes ranging in product type from 35’ front foot to 60’ front foot with home prices expected to range between $450K and $700K.

Builder Contracts

The lots are under contract with strong builders who have been in partnership with Hines in other Las Colinas developments including: Darling Homes, Highland Homes, Coventry Homes, David Weekley Homes, and Village Builders.

The contracts include earnest money deposits which secure homebuilders a number of lots for the entire development (including subsequent phases if applicable) and an agreed upon lot takedown. Hines projects annual lot sales of approximately 200 in the SH 114 corridor (including Bridges at Las Colinas and Parkside); therefore, projected sellout is anticipated at 6-8 years. The contracts are structured so that a partnership mentality is formed between Hines and the homebuilders.

Lot prices for Parkside are reflective of the projected price band of the end home as well general inflation. Typically, the lot cost is between 20%-30% of the total value.

Note: All original Las Colinas homebuilders in the developments noted herein remained active through all phases of the developments (2008-current).

History of Parkside Parcels:

As noted above, over the past eight years, Hines has worked with the City of Irving to rezone fallow property and introduce a variety of uses with the mindset that new development and uses will yield a vibrant community including additional office, retail, living, and recreational space.

Of the three Parkside parcels located along 114, the previous ownership included a long-term family, church, and foreclosed property owned by the lender. Hines worked with all three land owners and the City to develop a plan to add $341,280,000 of projected property value over the sell-out period while addressing the following issues identified with the real estate.

- Floodway de-siltation from upstream areas, primarily DFW Airport and overall improved regional drainage system

- Cabell Road realignment from Shorthorn Drive to Esters Road - Electrical duct bank improvements including telephone and other franchise utilities due to

Cabell Road realignment efforts - Uncompacted and non-documented fill material at the northwest parcel of Cabell Road and

Shorthorn Drive - Low regional water pressure

CMON

CMON

1/2 IRF

1/2 IRF

1/2 IRF

1/2 IRF

1/2 IRF

1 IPF

1/2 CIRS

1/2 CIRS

5/8 CIRF

1/2 CIRS

CONTROLLING MONUMENT

1/2 CIRS

1/2 CIRS

1/2 CIRS

1/2 CIRS

STELLA WYNNE LLC

5.276 ACRES

PRG IRVING GP LLC

5.849 ACRES

A CAR SYSTEM

THRIFTY RENT

0.904 ACRES

A CAR SYSTEM

THRIFTY RENT

3.0 ACRES

DHARMENDTRA

BHAKTA

1.794 ACRES

S89°37'50"W575.85' S89°37'50"W575.85'

S53°33'14"E69.90'

S1°18'18"E56.72'

CMON

CMON

1/2 IRF

1/2 IRF

1/2 IRF

1/2 IRF

1/2 IRF

1 IPF

1/2 CIRS

1/2 CIRS

5/8 CIRF

1/2 CIRS

1/2 CIRS

1/2 CIRS

1/2 CIRS

1/2 CIRS

STELLA WYNNE LLC

5.276 ACRES

PRG IRVING GP LLC

5.849 ACRES

A CAR SYSTEM

THRIFTY RENT

0.904 ACRES

A CAR SYSTEM

THRIFTY RENT

3.0 ACRES

DHARMENDTRA

BHAKTA

1.794 ACRES

S89°37'50"W575.85' S89°37'50"W575.85'

S53°33'14"E69.90'

S1°18'18"E56.72' PH 1

PH 3

PH 2A

PH 2C

PH 2B

N

CITY OF IRVING

0'0'

GRAPHIC SCALE

BELTLIN

E R

OA

D

SH 114

W

RO

YA

L LN

SH 114

300' 600'

SH

ORTH

OR

N

DR

ESTERS BLV

D

PLAZA DR REESE DR

CABELL DR

CABELL ROAD

TOTAL:

TOTAL:

LEGEND TYPICAL LOT SIZE UNITS

35'X110'

60'X130'

50'X115'

PHASE 2A

60'X130'

50'X115'

PHASE 1

40'X110'

228

64

81

83

PHASE 2B

50'X115' 110

PHASE 2C

72

149

52

97

PHASE 3

60'X130' 64

PARKSIDE WEST

TOTAL:

35'X110'

TOTAL:

35'X110'

TOTAL:

LEGEND

35'X110'

50'X115'

50'X115'

PHASE 2

OVERALL

136

46

90

UNITSTYPICAL LOT SIZE

50'X115'

PHASE 1

114

43

71

250

89

161

PARKSIDE EAST

HINES RESIDENTIAL DEVELOPMENT

AUGUST 28, 2013

PH 1

PH 2

PARKSIDE

PARKSIDE WEST

PARKSIDE EAST

OVERALL

60'X130'

50'X115'

40'X110'

35'X110'

TOTAL:

72

623

180

288

83