EXP DALLAS

214.522.7200

JOE CAPUTO

joe@exp1031.com

BOB MOORHEAD

bob@exp1031.com

property. 142,229+ SF building on 24.80+ acre site.

tenant. Lessee: FedEx Ground, 2nd largest small-package ground carrier in North America. Subsidiary of FedEx Corporation (NYSE: FDX)

lease structure. New, 10-year, corporate absolute NNN lease with rent bump in year 6.

location. The subject property is located along McKinney Falls Parkway near Austin Bergstrom International Airport. The site is also just south of State Highway

71 (49,643 Cars / Day) and Interstate 35 (160,000 Cars / Day). Austin Bergstrom International Airport serves over 9 million passengers annually. The immediate

trade area also has the advantage of railroad access. The low distribution costs associated with the intermodal access of the trade area has attracted a significant

influx of industrial development.

EXCLUSIVE OFFERING | $18,172,000 - 6.50% CAP

Fedex distribution center

4117 McKinney Falls Parkway, Austin, Texas

REPRESENTATIVE PHOTO

EXP Realty Advisors, Inc. (“Agent”) has been engaged as an agent for the sale of the

property located at 4117 McKinney Falls Parkway, Austin, TX the owner of the Property

(“Seller”). The Property is being offered for sale in an “as-is, where-is” condition and Seller

and Agent make no representations or warranties as to the accuracy of the information

contained in this Offering Memorandum. The enclosed materials include highly confidential

information and are being furnished solely for the purpose of review by prospective

purchasers of the interest described herein. The enclosed materials are being provided

solely to facilitate the prospective investor’s own due diligence for which it shall be fully and

solely responsible. The material contained herein is based on information and sources

deemed to be reliable, but no representation or warranty, express or implied, is being made

by Agent or Seller or any of their respective representatives, affiliates, officers, employees,

shareholders, partners and directors, as to the accuracy or completeness of the information

contained herein. Summaries contained herein of any legal or other documents are not

intended to be comprehensive statements of the terms of such documents, but rather only

outlines of some of the principal provisions contained therein. Neither the Agent nor the

Seller shall have any liability whatsoever for the accuracy or completeness of the

information contained herein or any other written or oral communication or information

transmitted or made available or any action taken or decision made by the recipient with

respect to the Property. Interested parties are to make their own investigations, projections

and conclusions without reliance upon the material contained herein. Seller reserves the

right, at its sole and absolute discretion, to withdraw the Property from being marketed for

sale at any time and for any reason. Seller and Agent each expressly reserves the right, at

their sole and absolute discretion, to reject any and all expressions of interest or offers

regarding the Property and/or to terminate discussions with any entity at any time, with or

without notice. This offering is made subject to omissions, correction of errors, change of

price or other terms, prior sale or withdrawal from the market without notice. Agent is not

authorized to make any representations or agreements on behalf of Seller. Seller shall

have no legal commitment or obligation to any interested party reviewing the enclosed

materials, performing additional investigation and/or making an offer to purchase the

Property unless and until a binding written agreement for the purchase of the Property has

been fully executed, delivered, and approved by Seller and any conditions to Seller’s

obligations hereunder have been satisfied or waived. By taking possession of and

reviewing the information contained herein, the recipient agrees that (a) the enclosed

materials and their contents are of a highly confidential nature and will be held and treated

in the strictest confidence and shall be returned to Agent or Seller promptly upon request;

and (b) the recipient shall not contact employees or tenants of the Property directly or

indirectly regarding any aspect of the enclosed materials or the Property without the prior

written approval of the Seller or Agent; and (c) no portion of the enclosed materials may be

copied or otherwise reproduced without the prior written authorization of Seller and Agent.

PAGE 3: INVESTMENT | TENANT | LEASE OVERVIEW

PAGE 1: COVER

PAGE 2: TABLE OF CONTENTS | DISCLAIMER

PAGE 9-10: LOCATION MAPS

Table of contents | Disclaimer Fedex distribution center

4117 McKinney Falls Parkway, Austin, Texas

PAGE 6-7: AERIAL PHOTOS

PAGE 8: LOCATION OVERVIEW

Disclaimer

2

PAGE 11: DEMOGRAPHICS

REPRESENTATIVE PHOTO

PAGE 5: PROPERTY PHOTOS

PAGE 4: PRICING & LOAN MATRIX

SUBJECT PROPERTY PRIOR TO PANDA EXPRESS EXPANSION

FedEx Ground

The FedEx Ground business segment is the 2nd largest small-package ground carrier in North

America. The Company has a network of more than 500 distribution hubs and local pick-up

and delivery terminals throughout the United States and Canada. FedEx Ground handles

about 2.3 million shipments per day.

FedEx Corporation | www.fedex.com

FedEx Corporation provides transportation, e-commerce, and business services in the United

States and internationally. It operates in four segments: FedEx Express, FedEx Ground,

FedEx Freight, and FedEx Services. The FedEx Express segment offers various shipping

services for the delivery of packages and freight. This segment also provides international

trade services specializing in customs brokerage, and ocean and air freight forwarding

services; customs clearance services, as well as global trade data, an information tool that

allows customers to track and manage imports; and international trade advisory services,

including assistance with the customs-trade partnership against terrorism program, as well as

publishes customs duty and tax information in various customs areas.

FedEx Freight segment offers less-than-truckload freight services, as well as freight-shipping

services. As of May 31, 2012, this segment operated approximately 58,000 vehicles and

trailers from a network of 366 service centers. The FedEx Services segment provides sales,

marketing, information technology, communications, customer service support, and other

back-office support services; and access to copying and digital printing through retail and

Web-based platforms, signs and graphics, professional finishing, computer rentals, and a

range of ground shipping and time-definite express shipping services. The company was

founded in 1971 and is headquartered in Memphis, Tennessee.

Over the previous 12-month period the company had $43.86 billion in revenue, net income

available to common shareholders of $1.80 billion, operating cash flow of $4.79 billion.

PRICE: $18,172,000

CAP RATE: 6.50%

NET OPERATING INCOME: $1,181,136

BUILDING AREA: 142,229 + Square Feet

LAND AREA: 24.80+ Acres

YEAR BUILT : 2008

OWNERSHIP: Fee Simple Interest

Tenant overview

3

Investment overview Fedex distribution center

4117 McKinney Falls Parkway, Austin, Texas

Lease Expiration: October 2022

Rent Commencement: October 2012

Initial Lease Term: 10-Years

FedEx Ground

Rent Increases: 2.4% in Lease Year 6

Year 1-6 Annual Rent (Current): $1,181,136

Lease Type: Absolute NNN

Year 6-10 Annual Rent: $1,209,396

Loan underwriting

Combined Loan Amount $11,513,757

Loan to Value 63%

Combined Debt Service $831,767

Down Payment $6,657,566

Cash Flow $349,369

Cash on Cash 5.25%

Loan Amount (First Loan) $5,113,394

Interest Rate 6.50%

Amortization 25 Years

Debt Service $414,312

Loan Amount (Second Loan) $3,922,364

Interest Rate 4.50%

Amortization 18 Years

Debt Service $318,335

Loan Amount (Third Loan) $2,478,000

Interest Rate 4.00%

Amortization Interest Only

Debt Service $99,120

4

PROPERTY PHOTOS Fedex distribution center

4117 McKinney Falls Parkway, Austin, Texas

5

Aerial photo Fedex distribution center

4117 McKinney Falls Parkway, Austin, Texas

Austin Bergstrom

International Airport Omni Business Park

Southpark Commerce

Center

Ben White

Business Park Southpark Corporate

Center

MoPac Business Park

6

Aerial photo Fedex distribution center

4117 McKinney Falls Parkway, Austin, Texas

IMMEDIATE TRADE AREA

The subject property is located along McKinney Falls Parkway near Austin

Bergstrom International Airport. The site is also just south of State Highway 71

(49,643 Cars / Day) and Interstate 35 (160,000 Cars / Day). Austin Bergstrom

International Airport serves over 9 million passengers annually. The immediate

trade area also has the advantage of railroad access.

The low distribution costs associated with the intermodal access of the trade

area has attracted a significant influx of industrial development. The site is

across from the Omni Business Park and near the Southpark Corporate

Center, Southpark Commerce Center, Ben White Business Park, and MoPac

Business Park. 9,100 people are employed in the manufacturing and

transportation industries within a 3-mile radius of the subject property. The

recent rapid residential growth near the site is expected to continue. The

population within a 1-mile radius is expected to increase by 24.4% over the

next 5-years.

AUSTIN, TX

Austin is the capital of Texas and the seat of Travis County. Austin has a

population of 786,386 and is the cultural and economic center of the Austin–

Round Rock-San Marcos MSA. The city is located in Central Texas on the

eastern edge of the American Southwest, and is the 4th largest city in Texas

and the 15th most populous city in the United States. From 2000 to 2006,

Austin was the 3rd fastest growing city in the nation.

Austin is considered to be a major center for high tech. Thousands of

graduates each year from the engineering and computer science programs at

the University of Texas at Austin provide a steady source of employees that

help to fuel Austin's technology and defense industry sectors. The region's

rapid growth has led Forbes to rank the Austin metropolitan area #1 among all

big cities for jobs for 2012 in their annual survey.

High-tech companies with operations in Austin include Nvidia, 3M, Apple,

Hewlett-Packard, Google, AMD, Applied Materials, Cirrus Logic, Cisco

Systems, Flextronics, eBay/PayPal, Bioware, Blizzard Entertainment, Hoover's,

Intel Corporation, National Instruments, Samsung Group, Buffalo Technology,

Silicon Laboratories, Xerox, Oracle, Hostgator, HomeAway, and United

Devices. Austin is home to the University of Texas at Austin (UT), the flagship

institution of the University of Texas System with over 38,000 undergraduate

students and 12,000 graduate students.

7

Location overview Fedex distribution center

4117 McKinney Falls Parkway, Austin, Texas

The university consistently ranks consistently among the top 50 "National

Universities” by U.S. News and World Report. UT has annual research

expenditures of over $640 million and has the highest-ranked business,

engineering, and law programs of any university in the state of Texas. Other

institutions of higher learning in Austin include Concordia University, St.

Edward's University, Seminary of the Southwest, Acton School of Business,

Austin Graduate School of Theology, Art Institute of Austin, and Austin

Conservatory.

AUSTIN-ROUND ROCK-SAN MARCOS METROPOLITAN AREA

The Austin–Round Rock-San Marcos Metropolitan Statistical Area is also

referred to as Central Texas or Greater Austin, and consists of 5 counties. The

population of Austin-Round Rock-San Marcos was 1,769,952 in 2009, making it

one of the 5 fastest-growing metro areas in the nation and the 35th-largest

MSA in the United States.

Thousands of graduates each year from the engineering and computer science

programs at The University of Texas at Austin provide a steady source of

employees that help to fuel Austin's technology and defense industry sectors.

Austin's largest employers include Dell, the U.S. Federal Government, IBM, St.

David's Healthcare Partnership, Seton Family of Hospitals, Texas State

University–San Marcos, The University of Texas, 3M, Apple Inc., Hewlett-

Packard, Google, Cisco Systems, eBay/PayPal, Blizzard Entertainment,

Hoover's, Intel Corporation, National Instruments, and Samsung Group. The

proliferation of technology companies has led to the region's nickname, “The

Silicon Hills", and spurred development that greatly expanded the city.

Central Texas is also emerging as a hub for pharmaceutical and biotechnology

companies. About 85 companies from this industry are based in Austin. The

city was ranked by the Milken Institute as the #12 biotech and life science

center in the United States.

The Greater Austin area is home to many companies, including the

headquarters of four Fortune 500 corporations: Whole Foods Market,

Freescale Semiconductor, Forestar Group, and Dell. In 2010, 43% of adults in

the City of Austin held college degrees, fourth place among the 77 largest cities

in the U.S. On average, 35% of the MSA’s population is college graduates, compared to 23% for all of Texas and 24% for the entire U.S.

8

Location map Fedex distribution center

4117 McKinney Falls Parkway, Austin, Texas

9

Location map Fedex distribution center

4117 McKinney Falls Parkway, Austin, Texas

10

Demographics Fedex distribution center

4117 McKinney Falls Parkway, Austin, Texas

Demographic snapshot

Austin Bergstrom International Airport

Downtown Austin, TX

Radius 1 Mile 3 Mile 5 Mile

2016 Projection 2,739 36,115 156,963

2011 Estimate 2,201 33,498 142,481

2010 Census 2,033 33,109 140,138

Growth 2011-2016 24.40% 7.80% 10.20%

Growth 2010-2011 8.30% 1.20% 1.70%

Households:

2016 Projection 828 11,468 55,316

2011 Estimate 672 10,655 50,207

2010 Census 621 10,539 49,368

Growth 2011-2016 23.30% 7.60% 10.20%

Growth 2010-2011 8.20% 1.10% 1.70%

Owner Occupied 501 3,805 18,076

Renter Occupied 171 6,850 32,131

2011 Avg Household Income $46,900 $43,877 $47,267

2011 Med Household Income $30,489 $35,419 $36,399

2011 Per Capita Income $14,711 $15,863 $17,536

2011 Households by Household Inc:

Income Less than $15,000 144 2,064 8,281

Income $15,000 - $24,999 107 1,387 7,512

Income $25,000 - $34,999 133 1,793 8,081

Income $35,000 - $49,999 84 2,006 9,290

Income $50,000 - $74,999 123 2,160 9,687

Income $75,000 - $99,999 23 689 3,843

Income $100,000 - $149,999 32 373 2,340

Income $150,000 - $199,999 5 95 526

Income $200,000+ 20 87 646