(1) 1221 7th ST. Triple Net Lease with Airgas a publicly traded company. 2,400 SF building, 2 warehouses with 4,000 total SF, 8,000 SF concrete paving. 250’ frontage including 150’ on 7th ST. 15,000 SF (0.34 acres) corner lot. Property triple net leased. Based on a 10.27% cap through August 2011 with annual escalation provisions. $732,240.

(2) 1201 7th ST. 24,000 SF (0.55 acres) corner lot. 310’ frontage including 150’ on 7th ST. Potential 20% owner subordinated 2nd loan. $74,600. Great location for new retail, professional or office space. Extensive unmet retail demand in the City and Zip Code provide outstanding opportunities

(3) 1218 8th ST. 12,000 SF (0.28 acres) lot. 230’ frontage. Potential 20% owner subordinated 2nd loan. $24,640. With no zoning, the property flexibility is outstanding. Great treed lot for residential or multi-family. Buy with 1221 7th ST to provide access to 7th ST, 8th ST and AVE A for commercial uses.

(4) 1225 7th ST. Combination of (2) and (3) above. 36,000 SF (0.83 acres) lot. 460’ frontage including 150’ on 7th ST. Potential 20% owner subordinated 2nd loan. $99,240.

(5) 1231 7th ST. Combination of (1) and (2) above. 39,000 SF (0.90 acres) lot. 560’ frontage including 300’ on 7th ST. Potential limited owner subordinated 2nd loan. $806,840.

(6) 1237 7th ST. Combination of (1), (2) and (3) above. 51,000 SF (1.17 acres) lot. 790’ frontage including 300’ on 7th ST. 1 property is a triple net lease. Potential limited owner subordinated 2nd loan. $831,480.

All offerings include 3% buyer broker commission.

This offering is for 1221 7th ST (ONLY the Airgas triple net lease).

HIGHLIGHTS

(1) 10.27% current cap triple Net Lease a publicly traded company, Airgas, as the tenant, with annual rent escalations for up to 11 additional years.

(2) Cap rate range beginning 08/11 has annual escalators including 2-5 year optional renewals ranging from 10.58% to 15.51% with a 12.64% avg!

(3) Government assistance includes tax abatement, tax free bonds, assistance with jobs training and recruitment, access to the Texas Capital Fund and a local SBDC.

(4) Superior regional location just 68 mi. to South Houston (TX 288 at the Beltway), Sugar Land and Victoria, 79 mi. to Houston Hobby & 99 mi. to Houston Bush.

(5) $1B+ County economy with local incomes growing at a 2.5% annual rate located in the Houston DMA, a global and national economic and jobs leader.

(6) Excellent area household demographics with 10% generating $100K+ annual incomes, 25%+net worth of $100K-$499K, and 3%+ net worth $1M+.

(7) Very good school system with the District being a TEA “Recognized” and an elementary with a TEA “Exemplary” rating.

(8) Community anchored by a diversified employment base including nuclear energy, Lyondell, chemical production, steel and compressor fabrication

(9) 16,500 avg. daily two-way traffic located directly on TX HWY 35 is the primary east-west corridor into and out of downtown Bay City.

(10) Comparing the Census Tract to all Benchmarks*, it has the Highest % with no mortgage, % service employees and % government employees; highest avg. household size; and lowest divorce rate.

*Benchmarks include: 1-mile radius; Bay City; 77414 zip code; Matagorda County; Wharton; El Campo; the Houston DMA; Texas; and the US.

OWNER IS A CCIM REAL ESTATE BROKER

The owner is a licensed real estate broker in Texas. He also holds a CCIM designation. He is not receiving any commissions payable under the listing agreement.

TRIPLE NET LEASE

This is a tremendous opportunity to acquire a Triple Net lease in the Houston DMA with a credit worthy, publicly traded tenant in a County with a $1B+ economy and local incomes growing on average of 2.5%+ per year.

(11) Tenant is a publicly traded company. Airgas Corp. Ticker symbol: ARG.

(12) Tenant primary client. The tenant’s primary client is STP Nuclear Operating Company an electricity generator. STP is the largest private employer in Matagorda County. We believe this relationship between the tenant and the largest area private employer significantly strengthens the probability of the current tenant renewing for additional 5-year periods.

(13) Lease type. Triple net single tenant retail/warehouse.

(14) Expiration date. August 31, 2012

(15) Options. Two for 5-years each with escalation provisions.

(16) Cap rate basis. Sale price of $732,240 for 1207 7th ST ONLY.

(17) Cap rate through 08/2011. 10.27%.

(18) Cap rate range from 08/2011 through 2-5 year optional renewals. 10.58% to 15.51%

(19) Average cap rate for 12 year period in (5) above. 12.64%.

(20) Lease disclosure. Upon execution of a confidentiality agreement, we will provide you a copy.

PROPERTY

(21) Lease description. Absolute triple net retail/warehouse lease with Airgas.

(22) Acreage. 0.34 acres (15,000 SF) per MCAD.

(23) Total frontage. 250’*.

(a) 7th Street (TX Highway 35) frontage. 150’*.

(b) Avenue B frontage. 100’*.

(24) Flood plain. None of the property is in a flood plain.

(25) Utilities. All City utilities on site

(26) Improvements. 3 structures per MCAD. Sold “as is where is”.

(a) Retail building. 2,400 SF concrete block. Year built not reported.

(b) Warehouse for storage # 1. 2,400 SF attached to Retail building. Year built not reported.

(c) Warehouse for storage # 2. 1,600 SF attached to Retail building. Year built not reported.

(d) Concrete paving. 8,000 SF.

(27) 1221 7th Street legal information.

(a) Legal description. Bay City original Town Site, Block 21, Lot 11-22.

(b) Tax ID. PIDN: 24582 GEO: 1161-0210-001100.

(c) In City limits? Yes.

(d) School district. Bay City ISD

(e) Zoning. None.

(f) 2010 taxes. $4,343.73.

(28) Tax considerations. Consult your tax advisor regarding your expected taxes.

RETAIL GAP ANALYSIS

(29) Definition. Retail gap analysis estimates unmet local retail demand. To calculate retail gap: Local Retail Demand – Local Retail Supply = Retail (gap/surplus).

(a) If DEMAND EXCEEDS SUPPLY there is a GAP or OPPORTUNITY.

(b) If SUPPLY EXCEED DEMAND there is a SURPLUS.

(30) Area analyzed. We utilized the 77414 zip code. We assume that the City and immediately outlying areas provide primary services in the zip code.

(31) Top 10 retail opportunities.

#1. Auto Sales & Parts Store. $22M+ Total Potential Revenues (Total $), $2,470 annually per HH. $927 annually per person.

#2. Limited Service Eating Place. $8.7M+ Total $. $947 annually per HH. $356 annually per person.

#3. Food & Beverage Store (groceries, etc.). $8.3M+ Total $. $904 annually per HH. $339 annually per person.

#4. Gasoline Station. $3.7M+Total $. $405 annually per HH. $152 annually per person.

#5. Specialty Food Store. $3M+ Total $. $328 annually per HH. $123 annually per person.

#6. Hardware Store (like an ACE Hardware). $2.9M+ Total $. $323 annually per HH. $121 annually per person.

#7. Drinking Place (alcoholic beverages). $1.8M+ Total $. $203 annually per HH. $76 annually per person.

#8. Electronics & Appliances Store (like a mini-Best Buy). $1.6M+ Total $. $179 annually per HH. $67 annually per person.

#9. Clothing & Accessories Store. $1.2M+ Total $. $134 annually per HH. $50 annually per person.

# 10. Health & Personal Care (like a CVS). $630K+ Total $. $69 annually per HH. $26 annually per person.

LOCATION

(32) Community anchored by a diversified employment base. Largest private employers by number of employees:

#1. STP Nuclear Operating Company. Electricity generation. STP is the primary client of the Triple Net Leased Client.

#2. OXEA Corporation. Chemical products.

#3. Lyondell Chemical. Plastics and manufacturing.

#4. Valerus Compressors. Compressor fabrication.

#5. Henderson Manufacturing. Steel fabrication.

(33) 16,500 avg. daily two-way traffic. 2nd highest traffic count reported in Bay City. Data point is 2 blocks east of property on TX HWY 35. The #1 traffic count in Bay City is about 0.5 mi. East on TX HWY 35 eastbound from TX HWY 60. Data from CCIM and ESRI and © 2010 MPSI Systems Inc. d.b.a. DataMetrix®.

(34) Directly on 7th Street (TX HWY 35). TX HWY 35 is the primary east-west corridor into and out of downtown Bay City.

(35) 4 blocks west of the primary downtown Bay City interchange. The primary downtown interchange is TX HWY 35 and TX HWY 60.

(36) Easy area access. 25 mi. to Wharton, 25 mi. to West Columbia, 34 mi. to El Campo, 42 mi. to Lake Jackson and 52 mi. to Rosenberg.

(37) Superior regional location. 68 mi. to Southern Houston (TX 288 at the Beltway), Sugar Land and Victoria.

(38) Easy airport access. 62 mi. to Victoria Regional Airport (VCT) with commuter service to IAH, 79 mi. to Houston Hobby International Airport (HOU) and 99 mi. to Houston Bush Intercontinental Airport (IAH).

(39) In the very affluent Houston DMA. The Houston DMA is one of the strongest regional economies in the US and globally.

INCENTIVES & ASSISTANCE FOR LOCATING OR EXPANDING

(40) Tax Abatement. Matagorda County and Bay City have tax abatement policies for companies expanding or locating in their jurisdictions. School taxes are NOT included in those abatements. School districts must be approached individually to seek real estate value caps on qualified industrial projects as permitted by state law.

(41) Job Training & Recruitment. The WorkSource in Bay city is available to assist new and existing businesses hire and train needed employees at no cost. The WorkSource can draw upon a job seeker database covering the Houston region. The Bay City Synergy Training Center provides technical and academic courses by a consortium of Wharton County Junior College, Texas State Technical College, Brazosport College, Victoria College and Texas A&M. Texas State Technical College also teaches certification courses in Palacios.

(42) Texas Capital Fund. This state incentive program provides competitive funds to the community and companies to assist in extending off-site infrastructure to a project site.

(43) Small Business Development Center. The University of Houston offers personalized assistance to entrepreneurs and existing small business owners to help them develop and grow their businesses.

(44) Business Assistance Center. This center in Bay City provides office space, computer services, technical support and business mentoring to entrepreneurs and existing businesses to help them grow from ideas to successful businesses and from small existing businesses to larger ones.

(45) Tax Free Bonds: The authorities of the two commercial ports in Matagorda County can issue tax-free bonds for construction of new facilities and infrastructure in support of industrial projects that increase business at the ports.

SCHOOLS AND SCHOOL DISTRICT REVIEW

We utilize GreatSchools for comparative analysis of school districts and schools across geographic areas.

(46) Bay City Independent School District.

(a) Students. 3,781.

(b) Schools. 7.

(c) GreatSchools rating. 4 out of 10.

(d) TEA Accountability Rating. “Recognized”

(47) Cherry Elementary School (grades PK-3).

(a) Students. 296.

(b) TEA Accountability Rating. “Exemplary”.

(c) GreatSchools rating. 7 out of 10.

(d) Overall GreatSchools reviews. 5 of 5 stars.

(e) Teacher quality GreatSchools reviews. 5 of 5 stars.

(f) Principal leadership GreatSchools reviews. 5 of 5 stars.

(g) Parent involvement GreatSchools reviews. 5 of 5 stars.

(48) Bay City Intermediate School (4-5)

(a) Students. 238.

(b) TEA Accountability Rating. “Recognized”.

(c) GreatSchools rating. 4 out of 10.

(d) Overall GreatSchools reviews. 4 of 5 stars.

(e) Teacher quality GreatSchools reviews. 4 of 5 stars.

(f) Principal leadership GreatSchools reviews. 4 of 5 stars.

(g) Parent involvement GreatSchools reviews. 2 of 5 stars.

(49) Bay City Junior High School (6-8).

(a) Students. 846.

(b) TEA Accountability Rating. “Exemplary”.

(c) GreatSchools rating. 4 out of 10.

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(d) Overall GreatSchools reviews. 3 of 5 stars.

(e) Teacher quality GreatSchools reviews. 3 of 5 stars.

(f) Principal leadership GreatSchools reviews. 3 of 5 stars.

(g) Parent involvement GreatSchools reviews. 3 of 5 stars.

(50) Bay City High School (9-12)

(a) Students. 1,120.

(b) TEA Accountability Rating. “Academically Acceptable”.

(c) GreatSchools rating. 3 out of 10.

(d) Overall GreatSchools reviews. 4 of 5 stars.

(e) Teacher quality GreatSchools reviews. 4 of 5 stars.

(f) Principal leadership GreatSchools reviews. 3 of 5 stars.

(g) Parent involvement GreatSchools reviews. 2 of 5 stars.

DEMOGRAPHICS & ECONOMETRICS

(51) AREA Benchmarks.

(a) Census Tract

(b) 1-mile radius

(c) Bay City

(d) 77414 zip code

(e) Matagorda County

(f) Wharton

(g) El Campo

(52) ALL Benchmarks.

(h) AREA Benchmarks

(i) Houston DMA

(j) Texas

(k) US

(53) Reference Benchmark to analyze this location. We utilized the smallest area by population, the Census Tract, for comparative analysis.

(54) Data baselines. All data is 2010 and from CCIM unless otherwise defined. Annual % change calculations are proprietary to CBC Southwest Partners.

(55) Econometric overview City, zip code and County.

(a) Total estimated economy.

? City. $534M+.

? Zip $719M+.

? County. $1.07B+.

(b) % $100K+ HH income and annual % growth through 2015.

? City. 10.1% in 2010 increasing 3.6% annually to 11.9% in 2015.

? Zip. 9.9% in 2010 increasing 3.2% annually to 11.5% in 2015.

? County. 9.9% in 2010 increasing 3.4% annually to 11.4% in 2015.

(c) % $250K+ HH income and annual % growth through 2015.

? City. 0.6% in 2010 increasing 6.7% annually to 0.8% in 2015.

? Zip. 0.6% in 2010 increasing 6.7% annually to 0.8% in 2015.

? County. 0.8% in 2010 increasing 5.0% annually to 1.0% in 2015.

(d) Avg household income (“HHI”) and annual % growth through 2015.

? City. $48,047 with 2.63% annual growth.

? Zip. $48,874 with 2.42% annual growth.

? County. $48,364 with 2.67% annual growth.

(e) % $100K-$499K household net worth.

? City. 24.3%.

? Zip. 27.8%.

? County. 28.6%.

?

(f) % $500K-$999K household net worth.

? City. 4.3%.

? Zip. 4.8%.

? County. 5.2%.

?

(g) % $1M+ household net worth.

? City. 2.0%.

? Zip. 2.4%.

? County. 2.6%.

(56) Demographic overview City, zip code and County.

(a) Population and annual % growth through 2015.

? City. 18,632 with 0.10% annual growth.

? Zip. 24.490 with 0.10% annual growth.

? County 37,565 with 0.08% annual growth.

(b) % population under 18 years old.

? City. 25.3%.

? Zip. 23.6%.

? County 22.7%.

(c) % population 25-54 years old.

? City. 43.2%.

? Zip. 43.9%.

? County 47.0%.

(d) % population 65 years old and older.

? City. 12.5%.

? Zip. 13.9%.

? County 11.8%.

(e) Households and annual % growth through 2015.

? City. 6.940 with 0.15% annual growth.

? Zip. 9.196 with 0.15% annual growth.

? County. 13.854 with 0.12% annual growth.

(57) Census Tract vs. AREA Benchmarks.

(f) Highest %:

? $300K-$399K home values

? $1M+ household net worth

(g) Highest avg.:

? Avg. monthly mortgage

(58) Census Tract vs. ALL Benchmarks.

(h) Highest %:

? No monthly mortgage

? Ser vice employees

? Government employees

? $1K-$1.5K monthly mortgage

(i) Highest avg.:

? Avg. household size

(j) Lowest %:

? Divorced

(59) Census Tract definition. A Census Tract, census area, or census district is a geographic region defined for the purpose of taking a census. Usually these coincide with the limits of cities, towns or other administrative areas and several tracts commonly exist within a county. In unincorporated areas of the United States these are often arbitrary, except for coinciding with political lines.

3% BUYER BROKER COMMISSION

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A buyer broker does NOT have to accompany their buyer to any showings.

CONTACT INFORMATION

Call 1.979.421.9996 to set up an appointment, request additional information or answer any questions.

GRAPHIC ANALYSIS

All analysis is based on defined and published sources. Unless otherwise noted, all demographic and econometric data is from Site to do Business, the demographic & econometric arm of the Certified Commercial Investment Member (CCIM) Commercial Investment Real Estate Institute. This CCIM service is in collaboration with ESRI.

Most annual % change estimates and traffic projections are based on Coldwell Banker Commercial Southwest Partners proprietary models.

*Estimates by Coldwell Banker Commercial Southwest Partners.

All other calculations such as # of improvements, SF, Acres, etc. are based on MCAD unless otherwise specifically defined.

There are 1,777 underlying PDF sets. All are available on the property website or on request.

There are 52 property and area links. All are available on the property website or on request.

DISCLOSURES & COPYRIGHTS

Coldwell Banker Commercial Southwest Partners is a wholly owned franchise of Alexander Tiffany Southwest, LLC. Analysis is preliminary, based on proprietary systems and models, is time sensitive and based on assumptions-stated and unstated. Graphics are only renderings. Measurements are only estimates. No warranties are expressed or implied. All content is protected by copyright laws, is only for prospects or legal representatives, and should not replace buyers own due diligence and analysis. Any other use is prohibited.