BARRJ, Inc.

BRYAN, ANTHONY, RYAN, ROBERT, JENAE

Plano Texas- Smart People. Smart

Place

Location: North of major cities Dallas and Fort Worth

Population: 266,740

Median Household Income: $82,484

School Systems: Rated Exemplary on all academic reports to date

The Plano of the next decade will continue to be a safe, vibrant

work center with beautiful neighborhoods. Plano is a city where our
residents enjoy educational, recreational and cultural opportunities
in abundance. (Plano Economic Development)

Property Summary

Class B Office in Plano, TX

Site Address: 6500-6620 Chase Oaks Blvd. Plano, TX

Property type: Corporate headquarters

Zoning: CC-Corridor commercial

Campus size: 5 buildings (936,311 sq. ft.)

Acreage: 84 acres including 16 undeveloped acres

Parking: 4,186 surface spaces

Texas Instruments: Owns land. Leased buildings 1 and 2 through

2016, and is currently the sole tenant

Property Highlights:
- Administrative offices
- Labs
- Conference center
- 133 seat auditorium
- Warehouse
- Fitness Center
Close Proximity:
- I-75/Central
Expressway
- Rail system
- DFW Airport
- Retail (malls,
restaurants)
- Parks

Property Upgrades:
-

1997 Building 2 lobby upgrade

2000 Building 1 roof replacement
2001 Fitness Center chiller package
replacement 2002 Building 2 ADA restroom
upgrade
2003 Skylight replacements
2004 Upgraded all AHU to VFD drives
2004 Install demand control ventilation
2004 Install new Simplex Fire Alarm System
2004 Building 1 cooling tower replacement
2005 Outdoor pool heater upgrade and
replacement 2006 Restroom refurbished-fixture
upgrade (touch less)
2006 Fitness Center new hardwood Aerobic
floor
2006 Retrofitted all fluorescent overhead
lighting to T-8 lights & electronic ballasts
2007 Refinished aerobic and gym hardwood
floors 2008 Retrofitted and upgrades all
Emergency overhead lighting to T-8 & new
battery packs
2013 Building 1 cooling tower replacement

Appropriate Uses

Corporate Office Campus

Liberty Mutual

USAA

Market Analysis

Market Rents for Office: $21.50 psf

Office vacancy in Plano - 25%

Comp

Strategy

Repurpose for Education

Texas Instruments lease expires 12/31/2016

Construct dormitory towers on

undeveloped parcel

University tenant occupies 1/1/2017

Existing Private Universities

Texas A&M

Texas Christian University

Embry Riddle

Southern Methodist University

Collin College

Rice University

Property Purchase

Purchase Price: $75,000,000

Equity: $50,000,000

Loan: $50,000,000

5.11%, 15-yr Term/Amortization, 1% origination fee

Purchase Cap Rate: 11%

Assumes Texas Instruments is paying market rents

Financial Assumptions

Market Rents: $21.50

Rents & OPEX escalates at CPI ~2%

Market Cap Rates for Office: 6.75%

Cap Rates at 7 years: 10%

Exit Sale Price: $230 MM

University rents: $17.70

IRR: 33%

Sensitivity Analysis

University Rents - $4.00 psf = -4.19% IRR

Exit Cap Rate + 1% = -1.17% IRR

3% CPI = -.63% IRR

No Dorm Bulding = 7.37% IRR

All Sensitivities Combined: 26.74%

Alternative Approach- Corporate

Park

Opportunity:

Develop a Corporate Campus for a single tenant interested in

expanding and having access to a booming business market.

In the News: Legacy West Expansion

Legacy West is a $2 billion, 240-acre corporate magnet

Toyota steers into Plano as its biggest relocation deal of 2014

Liberty Mutual confirms bringing up to 5,000 jobs to a new campus

at Plano's $2 billion Legacy West development by 2017

IRR: 25.31% at Below-Market Rents

Risks & Mitigants

University not interested in whole development

Consider Corporate Park

Corporate R&D Opportunity

Can rent only 60% of space

Loan conditions?

IRR: 20%

Market Rents

Ground Lease on 16-acre parcel

Approve the BARRJ Proposal

IRR: 32.68%