E X P E R I E N C E D T E A M | P R O V E N C A P A B I L I T Y | S O L I D R E S U L T S

PROPERTY LINESC O R P O R AT E N E W S L E T T E R | S P R I N G • S U M M E R 2 0 1 8

R E T A I L L E A S I N G

D E V E L O P M E N T

T E N A N T R E P R E S E N T A T I O N

A C Q U I S I T I O N

L A N D B R O K E R A G E

I N V E S T M E N T S A L E S

C O N S T R U C T I O N

P R O P E R T Y M A N A G E M E N T

With several major new centers opened or preparing for delivery, NewQuest properties is in high-energy mode for 2018. Leasing activity continues at a healthy pace, with clients realizing the great business potential in the strategic locations and tenant mix of NewQuest projects.

With plans for several new developments under negotiation, and ‘green lights’ for Phase II expansions on several existing projects, NewQuest is providing a host of new opportunities for retailers in 2018 and beyond.

FOR 2018M O M E N T U M

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• 75+ Tenant Representation Accounts

• 210,833 Square Feet Total Built Space — available inventory

• 261,169 Square Feet completed in 2017

• 165 Pads and 327 acres of available commercial land

• 10.8 MM Square Feet managed by NewQuest

• Extensive Land Brokerage Division

• CLOSED 4 new development deals in 2017

• $2.07 billion in assets

• NEWQUEST INVESTMENT COMPANY Acquisition Division/Grocery Anchored Developments

• NEWQUEST CROSSWELL Investment/Build to Suit Division

EXPERIENCED TEAMPROVEN CAPABILITYSOLID RESULTS

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STABLESIDE AT FALCON LANDING

KATY GRAND

CROSS CREEK COMMONS

Greater Houston Metro

Dallas/Ft. Worth Area Shreveport

FRISCO RANCH

LANTANA TOWN CENTER

NORTH TARRANT MARKETPLACE

FAIRF IELD MARKETPLACE

SHOPS AT KATY RESERVEGRAND MORTON TOWN CENTER

MARKETPLACE AT N INETY-S IX

CARROLLTON TOWN CENTER

CAMP FORBING MARKETPLACE

TX LA

CONTINUEDD E V E L O P M E N T S

· NEC of W. Grand Pkwy S & W. Airport Blvd. in Richmond, TX

· $115,000 Average Household Income

· 210,708 Current Population

· Master-planned community of Aliana will have 4,200 homes at completion

· SEC of I-10 and Pederson Rd. in Katy, TX

· Up to 450,000-square-feet of mixed use retail

· Groundbreaking in 2019 with 2020 opening

· Over 10,000 future lots platted or under development

IN THE WORKSD E V E L O P M E N T S

THE GRAND AT ALIANA

TEXAS HERITAGE MARKETPLACE

COMING SOONN E W Q U E S T S P O T L I G H T

NewQuest’s comprehensive knowledge of the market, combined with our relationships and successful experiences with local, regional, and national retailers, allows us to secure the best possible locations at the most favorable terms. As our clients’ outsourced real estate department, our team conducts and constantly refines an in-depth analysis of the short-term and long-term needs of our clients, enabling us to prepare and execute a strategic plan for the growth of their business. Our team represents seventy unique retailers and tenants, making our experience and scope of service deliverables our top priority.

®

EATS • DRINKS • SCENIC VIEWS

TENANTR E P R E S E N T A T I O N

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PUBLIC HOUSEGOURDOUGH’S

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LONE STARS T A T E O F T H I N G S

CHAMBERS TOWN CENTER CONTINUES RETAIL GROWTH IN EAST HOUSTON

The Baytown community is quickly expanding thanks to the area’s multi-billion-dollar refinery industry. Area workers and residents now have the convenience of Chambers Town Center, a 350,000-square-foot retail center anchored by a WalMart Superstore and other big-box brands. With excellent visibility and access to Interstate 10 and SH 146, the development offers one of the strongest retail opportunities in the market. Chambers Town Center boasts an excellent mix of quick service restaurants and sit-down dining. From Shogun Japanese Grill, Pho House,

and Fuzzy’s Taco Shop to Chick-Fil-A, Dickey’s BBQ, and Domino’s Pizza, there is something for every palate. Other tenants include Showbiz Cinemas, United Methodist, Davita, Vision Source, Sport Clips, and Mattress Firm.

To accommodate high demand, another 20,000 square feet of retail space has been constructed with plans for an additional 45,000 square feet, making Chambers Town Center the epicenter of shopping, dining and entertainment in the Baytown/East Houston market.

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NewQuest Properties is planning for a Fall groundbreaking on Katy Grand’s Phase II, where the “dinner and a movie” concept will undergo a major makeover to reel in present-day and next-generation moviegoers.

With several leases signed and three more nearing the finish line, NewQuest is unveiling details of its plan for the 7.43-acre expansion of Katy Grand and completion of the 21.7-acre first phase. A 19-screen Cinemark theater anchors the project, located at the junction of Interstate 10 and Grand Parkway in west Houston. The expansion calls for two retail/restaurant buildings, totaling 36,000 square feet to house a host of new-to-the-market restaurants and specialty retailers. The buildings will deliver in late fall.

KATY GRAND ANNOUNCESPHASE II GROUNDBREAKING

“We are creating a crossroads of culture for international dining and shopping experiences.” says Heather Nguyen, development partner for Houston-based NewQuest. “We’ve been quietly working hard to attract new restaurants and specialty retail brands to Greater Houston.” She and Rebecca Le, a NewQuest vice president, are pre-leasing the project. Choosing Katy Grand’s second phase for its market entry is Kinokuniya Books. Leases also have been signed with 85C° Bakery Café and Kura Revolving Sushi Bar, both of which have other locations in the region. Katy Grand is a walk-able design with green space and a dedicated children’s area. At completion, the project will house a dozen restaurants, seven specialty retail shops, the Cinemark, and a six-story, 1,727-space Metro parking structure. Within the five-mile trade area, there are nearly 236,000 residents with an average household income of $122,385 per year. The population has spiked more than 23% since 2010.

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Phase I of Marketplace at Ninety Six has reached capacity, with Phase II now leasing. This Kroger Marketplace-anchored development sits on 36 prime acres in League City, just south of Houston.

The goal here was to put together a tenant base focused on community needs, including quick-service and casual dining restaurants, medical services, and financial institutions. New tenants Valvoline and Regions Bank have signed leases for pad sites, and Ivy Kids will open 3rd Q2018. Ace Hardware recently signed and is taking 10,000 square feet. Sports Clips, SuperCuts, Better Homes and Gardens Real Estate Gary Greene, a nail salon, and a pediatric dentist will also open in Phase II this year.

MARKETPLACE AT NINETY-SIX EXPANDS INTO PHASE II DEVELOPMENT

Other tenants, including T Jin’s China Diner, Marco’s Pizza, League City Eye Center, Great Clips, Bao’s Cafe, Nail Bar of Texas, Pet Supermarket, CKO Kickboxing, El Dorado Mexican Restaurant, and Dental Etc., have already opened for business.

Located on the northeast corner of TX 96/League City Parkway and Hobbs Road, less than one mile west of Interstate 45, this area has become a development hotspot, with the completion of infrastructure projects geared toward facilitating new growth. Demographics within a two-mile trade area include an average annual household income of $118,604 with a median age of 33. Key to the site’s development strength is its location in Clear Creek ISD, a top-ranked educational system.

Each 123,000-square-foot Kroger Marketplace store offers full-service grocery, pharmacy, prepared foods, jewelry, baby clothes, toys, and general home-related merchandise, as well as a Kroger Fuel Center. More than 120 of Kroger’s nearly 3,000 locations are Marketplace stores.

KROGER MARKETPLACEM A K E S I T S M A R K

A unique opportunity to benefit from one of North Texas’ most successful retail communities, three pads sites are available to tenants looking to take advantage of the center’s success.

Situated at N. Tarrant Parkway and Precinct Line Road (along which the pads are located), this Kroger-anchored center also offers a new 37,000-square-foot L.A. Fitness, and other tenants include CVS, Chick-Fil-A, Whataburger, GNC, Wendy’s, Chef Blythe’s Southern Bistro, Tokyo Sushi, Banfield Pet Hospital, Mattress Firm, The Joint, Jersey Mike’s Subs, Cellphone Trendz, and Wag N’ Wash.

NORTH TARRANT MARKETPLACE OFFERS PAD SITES IN 100%-LEASED CENTER

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Located at the main entrance to Fairfield, a 5,800-household master-planned community, this 22-acre, well-situated development is quickly leasing up its pad sites, professional offices and approximately 30,000 square feet of retail space. Signed tenants include Pet Supermarket, Texas Children’s Pediatric Care, Strong Vision, Zaxby’s, Xfinity, T-Mobile, Wendy’s, a nail salon, and a dry cleaner.

Location plays a big part in the development’s success. Not only is it adjacent to an eight-story Memorial Hermann Hospital, it’s less than two miles from the the Grand Parkway.

FAIRFIELD SUCCEEDS IN THE DYNAMIC CITY OF CYPRESS

LANTANA TOWN CENTER NOW LEASING PHASE II

Lantana Town Center is the retail component of Republic Property Group’s Lantana Master-Planned Community, recently awarded ‘Community of the Year’ by the Dallas Builder’s Association. Due to the success of Phase I leasing, this mixed-use development is now leasing Phase II. Casa Mia Mexican Restaurant and Great Clips have already signed.

Located in Denton County, less than 15 miles north of DFW Airport, Phase II will incorporate restaurants, office space, and retail, all of which are now leasing. Lantana Town Center’s current tenant mix includes Starbucks, Hollywood Feed, Tokyo Samurai, ATI Physical Therapy, AT&T, and Firestone. Uptown Salon Lantana will be opening soon.

With the first phase leased up and Phase II well on the way, Shops at Katy Reserve is the first grocery-anchored retail center at the crossroads of three popular communities—Reserve at Katy, Firethorne, and Woodcreek. Located one-half mile south of Interstate 10 on the east and west sides of the FM 1463-Spring Creek Boulevard intersection, this is one of the highest growth areas in the nation.

The 39.8-acre development is a mix of restaurant, retail, and ground-lease pad sites, with current tenants including Pet Supermarket, 24-Hour Fitness, Wendy’s, Great Clips, Social Pub and Grill, Tiger Noodle Chinese Cuisine, and Vision Source.

The highly rated Katy ISD has opened a high school, junior high and elementary school, all within one mile of the Shops at Katy Reserve to support this high-density residential area, making it a prime spot for shopping, dining, and services.

SHOPS AT KATY RESERVE EXPANDSTO SERVE GROWING RESIDENTIAL

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Not only have more tenants recently signed leases at Grand Morton Town Center, but Insite has developed 400,000 square feet of office space just south of the location, which will bring a healthy amount of daytime traffic to the center.

This 85-acre development is anchored by Kroger Marketplace and WalMart, two big draws for the area’s growing families, and Regions Bank has recently signed. Tenants include MedExpress, Chick-Fil-A, Auto Zone, Taco Bell, McDonald’s, Whataburger, Chase Bank, 9 Round, Cricket Wireless, Kumon, Little Caesars, and UPS. Coming soon will be Michael’s and Home Goods.

Grand Morton Town Center is surrounded by a residential market with an excellent school district and one of the highest growth rates in the country. It encompasses 150,000-square-feet of retail space and 20 pad sites located on both the northeast and southeast corners of Grand Parkway and Morton Ranch Road.

GRAND MORTON TOWN CENTER NEARING 100% LEASED

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NewQuest Properties and VillaSport Athletic Club and Spa inked a landmark lease to kick off Stableside at Falcon Landing’s second phase of construction, bringing an amenity-rich health club and spa to the 270,000-square-foot retail development. Construction on the resort-style facility is set to begin in the summer. VillaSport Athletic Club and Spa will be developing a 90,000-square-foot structure with amenities that include NBA regulation-size basketball courts plus group studios for spinning, yoga, mind/body, Pilates, and TRX workouts. There will be more than 120 cardio machines, a full lineup of workout equipment, upward of 185 free exercise classes for members, and a 12,000-sqaure-foot kids-only club. The complex is expected to be completed within 15 months.

Located in the bullseye of the west Katy and Fulshear trade area, a 102,473-square-foot Kroger Signature store anchors the first phase of Stableside at Falcon Landing, which fronts Katy’s Gaston Road between Greenbusch Road and Falcon Landing Boulevard. Phase I includes 28,700 square feet of inline retail space, as well as a 7,350-square-foot multi-tenant building and four pad sites, each roughly one acre.

The first phase includes Spec’s, Raising Cane’s, Hollywood Feed, GNC, SportsClips, Iconic Eye Care, Deca Dental, and Regions Bank. Phase II will be the project’s “destination” component, featuring an oversized shared green space with patio seating for restaurants and boutiques. Signed tenants include Crust Pizza Company, Blockhouse Coffee, Main Squeeze Juice Company, and Sub Zero Ice Cream, with many full service restaurants currently in negotiations.

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VILLASPORT ATHLETIC CLUB AND SPAANNOUNCES LATEST LOCATION AT STABLESIDE AT FALCON LANDING

NewQuest’s Carrollton Town Center is a brand new concept in retail development — an eclectic shopping and dining experience targeted at the area’s growing Asian population. The incredible success of that project has spurred the creation of a second Asian shopping and “foodie” destination: Frisco Ranch.

DALLAS/FT. WORTHA R E A D E V E L O P M E N T S

The second incarnation of a highly successful retail concept, Frisco Ranch is an eclectic shopping and dining experience targeted at North Texas’ growing Asian population.

Set to deliver in mid 2018, Frisco Ranch offers 110,000-square-feet of specialty retail strategically located on nine acres just northeast of the Preston Road-Warren Parkway intersection.

“Frisco Ranch follows on the achievements of Carrolton Town Center, the first of this Asian-centric retail concept,” says Heather Nguyen. “We have a solid base of top-of-the-line brands from throughout Asian countries, and the healthy traffic we’re seeing at Carrolton is expected to equal—or surpass—the customers visiting Frisco Ranch.”

FRISCO RANCH LEASING AT A VERY HEALTHY PACE

Anchor tenants include 99 Ranch Market, a California-based Asian supermarket chain (44,875 square feet); Daiso Japan, a Home goods retailer with broad appeal throughout Asia (10,000 square feet); and 85°C Bakery Café, a bakery and coffee concept from Taiwan (3,000 square feet). Several restaurant options include Kickin’ Crab, Churro Alley, T-Swirl Crepes, Rice Chicken, Too Thai Street Food, and 8 Fahrenheit Ice Cream.

Frisco’s population currently is 163,656 residents, approximately 18% of whom are Asian. Median household income in Frisco is $123,055 and the median age is 37—young professionals and Millennials with growing families.

Meanwhile, Carrollton Town Center continues its success with the first Texas location for Kinokuniya Books, a popular Japanese book store. This center has become the “main and main” intersection of Asian inspired food and retail services in Carrollton, TX.

LOUISIANA’SL A T E S T D E V E L O P M E N T S

Camp Forbing Town Center in Shreveport is part of a 47-acre development site that includes retail, restaurants, a community center, lighted pedestrian walkways, outdoor seating, and natural landscaping. Located at the northwest corner of East Flournoy Lucas at Ellerbe Road, the project brings much-needed resources to this under-served area. NewQuest is proud to work with Shreveport officials and community leaders to make the development a success. Current tenants include Silver Star Grille, SportsClips, Pita Pit, along with Paciugo, Willis-Knighton Urgent Care, and Sprint.

CC’s Coffee House recently opened and RunWild recently signed. Thrifty Liquor and Wonderful Nail Spa are also now open.

CAMP FORBING TOWN CENTER:SHREVEPORT’S FIRST PLANNEDUNIT DEVELOPMENT

Camp Forbing Town Center is NewQuest’s first development in Louisiana. Along with a 123,000square foot Kroger Marketplace, a proposed state-of-the-art YMCA facility will anchor the project.

LAND BROKERAGE

Brad Elmore Brad LyBrand Danny McCormack

Frank Fitzgerald Glenn Dickerson Jeff Lokey Neal Thomson

Ori Batagower Rob Whitaker

DAVE RAMSEY TOP OVERALL PRODUCER & LAND BROKER

Dave Ramsey, vice president in NewQuest Properties Land Group, has earned the Top Overall and Top Land Producer’s honor for 2017 for the company.

The ten-broker division’s transactions volume topped $230.4 million and more than 3,552 acres in Texas. Ramsey’s sales accounted for $101.9 million of the grand total and 2,844 acres, the largest of which was nearly 704 acres at FM 529 and Grand Parkway in Katy. He has been involved in the sale of 15,451 acres since 2011.

Earlier in his career, Ramsey facilitated shopping center developments in Dallas, Houston and Charleston, S.C., where he lived about six years. He returned to Houston in 1991, traveling and working independently for national retail clients before landing at NewQuest and following in his father’s footsteps as a land broker.

“NewQuest’s land group is really busy, with a lot of deals at the title company. There’s a lot of money chasing land,” Ramsey says. “It’s a fun time to be in the land business in Houston.”

Matt ReedJJ McDermott John NguyenJeffrey Hayes Josh FriedlanderHeather Nguyen Hugh Ruggles Jon Jamison

Grace La

TEAMT H E N E W Q U E S T

RETAIL LEASING AND TENANT REPRESENTATION

Ashley Strickland Austin Alvis Bob Conwell

Rachael KeenerMeredith McLeod-Cobb

Ryan Kelsall Sam SeligmannRebecca Le Shireen Owlia

Austen Baldridge Chris DrayBrett Strake Caroline Daggett Dave Ramsey

JEFFREY S. HAYESTOP HYBRID BROKER

BOB CONWELLTOP PROJECT LEASING PRODUCER

Jeffrey S. Hayes has represented both national and local retailers and investors throughout the Houston

market. Hayes’ areas of expertise include tenant representation, retail, land and project development. Focused on long-term, full-service relationships with key retailers, his clients have included 24 Hour Fitness, Cinemark, Children’s Learning Adventure, Verizon Wireless, Capital One Bank, Five Below, and Lovett Dental. Hayes has advised and represented retailers in the site selection, market analysis and purchase and or lease negotiations in all of the major sub markets throughout the Houston area and South Texas.

Bob Conwell is a native Houstonian with more than 31 years in real

estate – 21 of those years have been with NewQuest Properties. Prior to NewQuest, he was Vice President at University Savings and Loan. Bob has represented such clients as Inland, RPI Management, and NewQuest, and currently represents Malibu Tan and Shogun Japanese Grill and Steakhouse. He attended the University of Houston and is an avid supporter of Cougar football. Bob is also a member of Preservation Houston and the International Council of Shopping Centers.

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TEAMT H E N E W Q U E S T

2017 TOP BROKERS

DAVE RAMSEY TOP OVERALL PRODUCER& TOP LAND BROKER

MATT REEDTOP RETAIL BROKER

Dave Ramsey specializes in the acquisition and disposition of large

residential and mixed use properties. With more than 32 years of experience in the real estate industry, Dave has been involved in transactions totaling more than 11,000-acres of property. Dave is consistently listed among the “Heavy Hitters in Commercial Real Estate” in the Houston Business Journal. He graduated from the University of Texas in Austin with B.S. degrees in Real Estate and Marketing. Dave is a member of the International Council of Shopping Centers and is a licensed Real Estate Broker in the State of Texas.

Matt Reed joined NewQuest in 2004 and specializes in Tenant Representation. He has been in the real estate business

since 2002 and has been named a Houston Business Journal “Heavy Hitter” and an “MVP” numerous times. He was awarded the Top Retail Broker by NewQuest last year. His clients include Dick’s Sporting Goods, ULTA Cosmetics, Ross Dress for Less, PETCO, El Pollo Loco, Lane Bryant, 99 Cents Only, Yum Brands, European Wax Center, Full Psycle, and Mi Doctor. Matt is a 1993 graduate of the United States Military Academy with a degree in Aeronautical Engineering, and a member of the International Council of Shopping Centers.

NORTHWEST PARK CROSSING | HOUSTON, TEXAS • 4 acre development project • Tenants include: Raising Cane’s, Wendy’s, and Hotel Bella

COTTONWOOD CREEK MARKET | WAC0, TEXAS • 143 acre master planned development • I-35 retail, medical office & multi-family

SHADOW CREEK RANCH | PEARLAND, TEXAS • 40 acre mixed-use development in Pearland, TX • 5.47 acre ground lease with large national hospital • Retail pads sold to Panda Express and Hooters

CONROE WATERFRONT CENTER | CONROE, TEXAS • 115 acre master planned mix-use development • 12 acre I-45 retail & 12 acre multi-family under development 1Q 2018

ACADEMY | D’IBERVILLE, MISSISSIPPI • 7.55 acre BTS development • Located in major retail center known as Lakeview Village

SLIM CHICKENS | HOUSTON, TEXAS • Completed a 4 unit BTS development program in Houston, TX • Locations in Katy & Spring, Humble and Cypress, TX

SOUTH SHORE RETAIL | AUSTIN, TEXAS • 5 acre development • Walgreens ground lease • Tenants include: Starbucks, Chipotle and AT&T

NEWQUEST CROSSWELLDEVELOPMENTS

CROSSWELLN E W Q U E S T

NewQuest Crosswell’s build-to-suit program is geared towards high growth, investment and sub-investment grade credit retailers, restaurants, non-profit organizations, financial institutions, service and healthcare providers.

The program allows clients to expand their businesses within their desired market areas without needing to commit resources or substantial amounts of capital for land and construction costs. As a turn-key build-to-suit developer, NewQuest Crosswell acts as a single source of responsibility for both delivery and financing. NewQuest Crosswell is self-funded and the capital invested is its own.

BUILD TO SUITPROGRAM

NewQuest Crosswell (NQC) is a division of NewQuest Properties and is a privately held real estate development and investment firm specializing in single tenant build-to-suit development opportunities. Leveraging over 50 years combined experience and deep market relationships, NewQuest Crosswell invests for its own account through a broad platform of real estate ownership and development services to provide exceptional risk-adjusted returns to its partners. Regardless of the deal’s size, sophistication or challenge, NewQuest Crosswell’s style is straightforward, direct and responsive.

NewQuest Investment Company (NQIC), a division of NewQuest Properties, acquires existing grocery-anchored retail centers in strategic markets nationwide. NQIC combines the strengths of an institutional investment organization with a $2.07 billion, multi-faceted real estate development, leasing and management company to provide investors with a programmatic national grocery-anchored acquisition platform.

MARKETPLACEIndependence, MO

MARKET SQUARE AT ELDRIDGEHouston, TX

PLAZA NORTHOmaha, NE

PRAIRIE POINTAurora, IL

SILVER STATESparks, NV

NQICPROJECTS

INVESTMENT COMPANY

N E W Q U E S T

CURRENT PORTFOLIO CONSISTING OF

1.1M SF

$116M IN VALUE

5 PROPERTIES

LEASING | TENANT REPRESENTATION | DEVELOPMENT | LAND BROKERAGE | ACQUISITION | PROPERTY MANAGEMENT

8827 W. SAM HOUSTON PARKWAY N. | SUITE 200 | HOUSTON, TEXAS 77040

OUR QUESTI S Y O U R S U C C E S S

99 retail centers and office buildings: 5.6M Square Feet

2018 Pipeline: Under contract or closed on an additional 109 acres

18 On-Going Developments across Texas

NewQuest Investment Company Current Portfolio:5 Properties - 1.1 M Square Feet

NewQuest Crosswell 2018 Current Pipeline:7 Build-To-Suit Developments

9.9M SFOWNED

12.1M SFLEASED

10.8M SFMANAGED