LUBY’S TRACT: DEVELOPMENT ANALYSISEXECUTIVE SUMMARY

825 Town & Country Lane Houston, Harris County, Texas, 77024

1.1329 acre tract former 10,648 sf

Luby’s

TRACT

LUBY’S TRACT: DEVELOPMENT ANALYSISMARKET ANALYSIS

231,267 – 253,872 cars on Katy Freeway at Beltway 8

131,840 – 201,000 cars on Beltway 8 at Katy Freeway

10,000 – 12,000 visitors daily at CITYCENTRE during office hours

12,000 – 30,000 visitors daily at CITYCENTRE during peak weekend hours

2,700 office workers within 2 blocks (By Project Completion)

815 residences at CITYCENTRE (By Project Completion)

TRAFFIC

RETAIL CONSUMER PROFILE white, 38y/o, upper-middle income, homeowner

health, energy, and engineering services OFFICE USER PROFILE

RADIUS 1 Mi 3 Mi 5 Mi2016 projection 10,410 125,402

364,0912011 estimate 9,000 116,045336,8732010 census 8,581 114,499332,580growth 2011-2016 15.70% 8.10% 8.10%

LUBY’S TRACT: DEVELOPMENT ANALYSISMARKET ANALYSIS

officesCITYCENTRE 1CITYCENTRE 2CITYCENTRE 3CITYCENTRE 4 under construction900 Town and CountryTown & Country IIITown & Country IVTown & Country VTown & Country Building909 Town and Country proposed

residencesBROWNSTONE AT CITYCENTREDOMAIN AT CITYCENTREICON CITYCENTRE under constructionLOFTS AT CITYCENTREPEARL CITYCENTRE proposedRESIDENCES AT HOTEL SORELLA proposed

median HH income of

$208K 

population of approximately 700K in a 7 mile radius

LUBY’S TRACT: DEVELOPMENT ANALYSISSTRATEGY

TAKE ADVANTAGE OF MKT CONDITIONS; SELECT HIGHEST & BEST USE

21,679 RSF / 18,577 USF

15 SPACES1,900

2,789

21,679 RSF / 18,577 USF

21,679 RSF / 18,577 USF

21,679 RSF / 18,577 USF

62 PARKING SPACES

62 PARKING SPACES

62 PARKING SPACES

62 PARKING SPACES4,53

4

9,896 RSF / 8,134 USF

9,896 RSF / 8,134 USF

9,896 RSF / 8,134 USF

Green Heights at CITYCENTRE

Mixed Use Multifamily / Retail

$2.60psf / $30.00nnn23.13% Load Factor

9,896 RSF / 8,134 USF

Green Tower at CITYCENTRE

Mixed Use Office / Retail$28.66nnn / $35.00nnn

8.34% Load Factor

9,896 RSF / 7,350 USF

9,896 RSF / 7,350 USF

GREEN HEIGHTS AT CITYCENTREPHYSICAL ANALYSIS

fresh urban green hip

local stylishfashionable warm

home calm

chief concerns

CONNECTIONEASE OF ACCESS

SPACE

CONNECTIONSPACE

distance from structuresextension of development

EASE OF ACCESS

formerly had 35 spacesadd 29more; surpass

reqs.

GREEN TOWER AT CITYCENTREPHYSICAL ANALYSIS

modernurban productive clean

convenient efficientconnected

businessoffice comfortable

chief concerns

CONNECTIONENGINEERING

CONNECTION

extension of development

ENGINEERING

required creativity to accommodate tight

parking garage constraints

LUBY’S TRACT: DEVELOPMENT ANALYSISFINANCIAL ANALYSIS – BACK OF NAPKIN

SELECTING HIGHEST & BEST USE

Green Heights at CITYCENTRE

Mixed Use Multifamily / Retail

50,000 SF$2.60/mo/mg

$106,000

$6,000,000$4,700,600$150,250

$10,750,600

9.86%

Green Tower at CITYCENTRE

Mixed Use Office / Retail

96,000 SF$28.50/yr/nnn

$2,570,000

$6,000,000$13,780,000$5,500,000$25,280,000

10.17%

sizerate

INCOME

landconstruction

ti & commissionsTOTAL COST

ROI

9% vacancy + parking

$21.20/yr/nnn

$95psf, with parkingsalary + 1 retail lease

$110psf;$34psf parking

LUBY’S TRACT: DEVELOPMENT ANALYSISFINANCIAL ANALYSIS – COSTED OUT

MATERIALS COST LESS; RENTS CONTINUE TO CLIMB

Green Heights at CITYCENTRE

Mixed Use Multifamily / Retail

$6,140,000$4,941,333$202,300$297,653$160,000$769,335

6.66%5.31%9.38%2.10

$15,352,8356.50%

Green Tower at CITYCENTRE

Mixed Use Office / Retail

$6,140,000$17,864,747$1,856,029 $849,590$160,000

$1,693,519

9.12%20.12%18.15%

2.96

$40,085,2347.50%

acquisitionconstructionmarketing

developmentoperationsfinancing

ROIROEIRR

MULTIPLE

VALUECAP

LUBY’S TRACT: DEVELOPMENT ANALYSISRISK

Total Net Development Cost $22,627,246

1st Year NOI 2,605,000

10th Year NOI $3,006,000

Annual Debt Service $1,943,371

Equity Requirement $11,850,899

Parking

Connectivity

Market Conditions Always a Variable

Exit Cap Rate Questions (conservative at 7.5%; est. 7.0% current)

LUBY’S TRACT: DEVELOPMENT ANALYSISVALUE

more office

more retail

more parking

more foot traffic

hot market

low construction costs

conservative proforma

great location

different user experience