LYDA BUILDING6228 Bandera Rd • San Antonio, TX 78238

OFFERING MEMORANDUM

1

N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E

Confidentiality and DisclaimerThe information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap RealEstate Investment Services, Inc. ("Marcus & Millichap") and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This MarketingBrochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. Theinformation contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, withrespect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, thepresence or absence of contaminating substances, PCB's or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or thefinancial condition or business prospects of any tenant, or any tenant's plans or intentions to continue its occupancy of the subject property. The information contained in this MarketingBrochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus& Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided.All potential buyers must take appropriate measures to verify all of the information set forth herein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate InvestmentServices, Inc. © 2018 Marcus & Millichap. All rights reserved.

THE TEXAS REAL ESTATE COMMISSION (TREC) REGULATES REAL ESTATE BROKERS AND SALES AGENTS, REAL ESTATE INSPECTORS,HOME WARRANTY COMPANIES,EASEMENT AND RIGHT-OF-WAY AGENTS AND TIMESHARE INTEREST PROVIDERS. YOU CAN FIND MORE INFORMATION AND CHECK THE STATUS OF A LICENSE HOLDER ATWWW.TREC.TEXAS.GOV. YOU CAN SEND A COMPLAINT AGAINST A LICENSE HOLDER TO TREC. A COMPLAINT FORM IS AVAILABLE ON THE TREC WEBSITE. TRECADMINISTERS TWO RECOVERY FUNDS WHICH MAY BE USED TO SATISFY A CIVIL COURT JUDGMENT AGAINST A BROKER, SALES AGENT, REAL ESTATE INSPECTOR, OREASEMENT OR RIGHT-OF-WAY AGENT, IF CERTAIN REQUIREMENTS ARE MET. IF YOU HAVE QUESTIONS OR ISSUES ABOUT THE ACTIVITIES OF A LICENSE HOLDER, THECOMPLAINT PROCESS OR THE RECOVERY FUNDS, PLEASE VISIT THE WEBSITE OR CONTACT TREC AT:

TEXAS REAL ESTATE COMMISSIONP.O. BOX 12188AUSTIN, TEXAS 78711-2188(512) 936-3000

Non-Endorsement NoticeMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporations logo or nameis not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, orcommercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

LYDA BUILDINGSan Antonio, TXACT ID ZAB0490018

2

TABLE OF CONTENTS

SECTION

INVESTMENT OVERVIEW 01Offering Summary

Regional Map

Local Map

Aerial Photo

FINANCIAL ANALYSIS 02Tenant Summary

Lease Expiration Summary

Operating Statement

Notes

Pricing Detail

Acquisition Financing

MARKET OVERVIEW 03Demographic Analysis

LYDA BUILDING

3

LYDA BUILDING

4

INVESTMENT

OVERVIEW

LYDA BUILDING

#

OFFERING SUMMARY

5

EXECUTIVE SUMMARY

DEMOGRAPHICS

1-Miles 3-Miles 5-Miles

2018 Estimate Pop 13,656 124,438 372,984

2010 Census Pop 12,633 116,494 349,002

2018 Estimate HH 5,895 50,763 141,870

2010 Census HH 5,450 47,324 132,485

Median HH Income $45,791 $46,313 $48,829

Per Capita Income $23,996 $24,372 $23,883

Average HH Income $55,570 $59,502 $62,466

VITAL DATA

PRO FORMA

Price $1,700,000 CAP Rate 10.29%

Down Payment 25% / $425,000 Net Operating Income $174,960

Loan Amount $1,275,000 Net Cash Flow After Debt Service 20.64% / $87,732

Loan Type Proposed New Total Return 27.37% / $116,309

Interest Rate / Amortization 4.75% / 25 Years

Rentable SF 10,935

Price/SF $155.46

Current Occupancy 0%

Year Built 1967

Lot Size 0.45 acre(s)

LYDA BUILDING

OFFERING SUMMARY

Former Headquarters Building of Lyda Construction

Generation Steel Frame and Concrete Wall Panel Construction

High Traffic Bandera Road Location (40k+ VPD)

2.5 Miles from Medical Center

0.5 Miles to Loop 1604

Building Configured for One or Two Tenants

INVESTMENT HIGHLIGHTS

Own a piece of San Antonio History. The Lyda Building was the 10,935 square foot headquarters of Lyda Construction. Gerald Lyda built many of the San Antonio and

Central Texas landmarks that define our landscape today. His notable projects included the Expansion of Memorial Stadium in Austin, The Tower of the Americas, The

Theatre for the Performing Arts, San Antonio Convention Center, as well as Fiesta Texas Theme Park, Texas Military Institute, Hilton Hill Country Resort and major portions

of The Alamodome. The Lyda building features two large light fixtures in the lobby that commemorate the construction of the Tower of Americas

This building is built to last, constructed of steel framing and concrete precast wall panels. The centralized location just off Loop 410 on Bandera Road provides easy access

to the Medical Center, Downtown and the North West side of San Antonio.

Until recently the Lyda building was occupied by a large law firm until the building size no longer fit their needs. It is an ideal purchase for an owner/user looking to establish

a San Antonio office or for investors who are looking for office investments in a stable, mature office market.

INVESTMENT OVERVIEW

6

REGIONAL MAP

LYDA BUILDING

7

LOCAL MAP

LYDA BUILDING

8

AERIAL PHOTO

LYDA BUILDING

9

PROPERTY PHOTO

LYDA BUILDING

10

Marcus & Millichap closes

more transactions than any other

brokerage firm.

12

LYDA BUILDING

11

PROPERTY PHOTO

LYDA BUILDING

12

FINANCIAL

ANALYSIS

FINANCIAL ANALYSIS

LYDA BUILDING

PRICING DETAIL

13

FINANCIAL ANALYSIS

LYDA BUILDING

14

TENANT SUMMARY

FINANCIAL ANALYSIS

LYDA BUILDING

OPERATING STATEMENT

15

MARCUS & MILLICHAP CAPITAL CORPORATION CAPABILITIES

MMCC—our fully integrated, dedicated financing arm—is committed to

providing superior capital market expertise, precisely managed execution, and

unparalleled access to capital sources providing the most competitive rates and

terms.

We leverage our prominent capital market relationships with commercial banks,

life insurance companies, CMBS, private and public debt/equity funds, Fannie

Mae, Freddie Mac and HUD to provide our clients with the greatest range of

financing options.

Our dedicated, knowledgeable experts understand the challenges of financing

and work tirelessly to resolve all potential issues to the benefit of our clients.

National platform operating

within the firm’s brokerage offices

$6.24 billion total national

volume in 2018

Access to more capital sources than any other

firm in the industry

Optimum financing solutions to

enhance value

Our ability to enhance buyer

pool by expanding finance

options

Our ability to enhance

seller control

• Through buyer

qualification support

• Our ability to manage buyers

finance expectations

• Ability to monitor and

manage buyer/lender progress,

insuring timely,

predictable closings

• By relying on a world class

set of debt/equity sources

and presenting a tightly

underwritten credit file

WHY MMCC?

Closed 1,678 debt and equity

financings in 2018

ACQUISITION FINANCING

LYDA BUILDING

16

LYDA BUILDING

17

MARKET

OVERVIEW

PROPERTY NAME

MARKETING TEAM

LYDA BUILDING

DEMOGRAPHICS

Source: © 2019 Experian

Created on February 2020

POPULATION 1 Miles 3 Miles 5 Miles

2023 Projection

Total Population 14,831 130,958 390,169

2018 Estimate

Total Population 13,656 124,438 372,984

2010 Census

Total Population 12,633 116,494 349,002

2000 Census

Total Population 9,328 104,665 311,945

Current Daytime Population

2018 Estimate 16,959 152,145 404,758

HOUSEHOLDS 1 Miles 3 Miles 5 Miles

2023 Projection

Total Households 6,454 54,824 151,932

2018 Estimate

Total Households 5,895 50,763 141,870

Average (Mean) Household Size 2.33 2.44 2.58

2010 Census

Total Households 5,450 47,324 132,485

2000 Census

Total Households 4,171 40,872 115,263

HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles

2018 Estimate

$200,000 or More 0.86% 1.67% 1.81%

$150,000 - $199,999 2.27% 2.53% 2.94%

$100,000 - $149,000 9.92% 9.64% 11.25%

$75,000 - $99,999 10.79% 11.48% 12.07%

$50,000 - $74,999 22.87% 21.50% 20.89%

$35,000 - $49,999 11.59% 15.13% 15.28%

$25,000 - $34,999 12.95% 12.42% 11.32%

$15,000 - $24,999 13.84% 10.83% 11.00%

Under $15,000 14.50% 16.77% 15.47%

Average Household Income $55,570 $59,502 $62,466

Median Household Income $45,791 $46,313 $48,829

Per Capita Income $23,996 $24,372 $23,883

POPULATION PROFILE 1 Miles 3 Miles 5 Miles

Population By Age

2018 Estimate Total Population 13,656 124,438 372,984

Under 20 25.64% 25.82% 27.04%

20 to 34 Years 26.93% 27.53% 26.41%

35 to 39 Years 7.36% 7.13% 7.13%

40 to 49 Years 11.24% 11.26% 11.84%

50 to 64 Years 15.15% 15.42% 15.98%

Age 65+ 13.67% 12.85% 11.60%

Median Age 33.51 33.03 32.91

Population 25+ by Education Level

2018 Estimate Population Age 25+ 9,136 82,552 242,699

Elementary (0-8) 3.87% 4.50% 5.65%

Some High School (9-11) 6.70% 8.32% 8.57%

High School Graduate (12) 26.35% 25.57% 25.24%

Some College (13-15) 28.50% 27.02% 25.59%

Associate Degree Only 8.90% 7.75% 7.91%

Bachelors Degree Only 17.82% 17.30% 17.03%

Graduate Degree 6.92% 7.96% 8.15%

18

PROPERTY NAME

MARKETING TEAM

LYDA BUILDING

DEMOGRAPHICS

Source: © 2019 Experian

Created on February 2020

POPULATION BY

TRANSPORTATION TO WORK1 Miles 3 Miles 5 Miles

2018 Estimate Total Population

Bicycle 0.12% 0.06% 0.07%

Bus or Trolley Bus 2.51% 2.84% 2.74%

Carpooled 7.68% 8.71% 9.49%

Drove Alone 83.75% 83.33% 81.90%

Ferryboat 0.00% 0.00% 0.01%

Motorcycle 0.23% 0.23% 0.19%

Other Means 1.40% 1.25% 1.38%

Railroad 0.00% 0.01% 0.00%

Streetcar or Trolley Car 0.00% 0.00% 0.00%

Subway or Elevated 0.00% 0.04% 0.03%

Taxicab 0.23% 0.11% 0.07%

Walked 1.25% 1.36% 1.64%

Worked at Home 2.83% 2.06% 2.48%

POPULATION BY TRAVEL TIME

TO WORK1 Miles 3 Miles 5 Miles

2018 Estimate Total Population

Under 15 Minutes 21.01% 20.66% 20.70%

15 - 29 Minutes 44.57% 46.76% 44.51%

30 - 59 Minutes 23.81% 23.60% 25.52%

60 - 89 Minutes 2.37% 2.60% 2.71%

90 or More Minutes 1.76% 1.42% 1.39%

Worked at Home 2.83% 2.06% 2.48%

Average Travel Time in Minutes 26 26 26

19

Income

In 2019, the median household income for your selected geography is$45,791, compare this to the US average which is currently $58,754.The median household income for your area has changed by 20.74%since 2000. It is estimated that the median household income in yourarea will be $53,215 five years from now, which represents a changeof 16.21% from the current year.

The current year per capita income in your area is $23,996, comparethis to the US average, which is $32,356. The current year averagehousehold income in your area is $55,570, compare this to the USaverage which is $84,609.

Population

In 2019, the population in your selected geography is 13,656. Thepopulation has changed by 46.40% since 2000. It is estimated that thepopulation in your area will be 14,831.00 five years from now, whichrepresents a change of 8.60% from the current year. The currentpopulation is 48.66% male and 51.34% female. The median age of thepopulation in your area is 33.51, compare this to the US averagewhich is 37.95. The population density in your area is 4,350.31 peopleper square mile.

Households

There are currently 5,895 households in your selected geography. Thenumber of households has changed by 41.33% since 2000. It isestimated that the number of households in your area will be 6,454five years from now, which represents a change of 9.48% from thecurrent year. The average household size in your area is 2.33persons.

Employment

In 2019, there are 10,364 employees in your selected area, this is alsoknown as the daytime population. The 2000 Census revealed that66.20% of employees are employed in white-collar occupations in thisgeography, and 34.18% are employed in blue-collar occupations. In2019, unemployment in this area is 3.51%. In 2000, the average timetraveled to work was 26.00 minutes.

Race and Ethnicity

The current year racial makeup of your selected area is as follows:70.58% White, 6.75% Black, 0.26% Native American and 4.44%Asian/Pacific Islander. Compare these to US averages which are:70.20% White, 12.89% Black, 0.19% Native American and 5.59%Asian/Pacific Islander. People of Hispanic origin are countedindependently of race.

People of Hispanic origin make up 64.15% of the current yearpopulation in your selected area. Compare this to the US average of18.01%.

PROPERTY NAME

MARKETING TEAM

LYDA BUILDING

Housing

The median housing value in your area was $135,425 in 2019,compare this to the US average of $201,842. In 2000, there were1,991 owner occupied housing units in your area and there were 2,180renter occupied housing units in your area. The median rent at thetime was $489.

Source: © 2019 Experian

DEMOGRAPHICS

20

8

LYDA BUILDING

DEMOGRAPHICS

21