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±3,474 acresConroe, TX

SH 242 and FM 1314

Offers due March 21, 2018

No Outside Broker Fee

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ContactsJLL Houston1400 Post Oak BoulevardHouston, Texas 77056

Simmi JaggiSenior Vice President

simmi.jaggi@am.jll.com

+1 713 888 4098

Elizabeth ClampittSenior Vice President

elizabeth.clampitt@am.jll.com

+1 713 888 4075

Dan BellowPresident

dan.bellow@am.jll.com

+1 713 888 4001

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Table of Contents

5 Introduction

6 Investment Highlights

10 Montgomery County Highlights

15 Houston Area Highlights

16 Key Industries

20 Key Markets

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5

JLL is proud to offer a unique opportunity to acquire, in

all or part, a development opportunity in Conroe, Texas,

totaling approximately 3,474 acres (the Property). The

property is located 6 miles east of The Woodlands, along

SH 242 at the FM 1314 intersection. The Property is located

among one of the fastest growing and economically

successful areas of the United States. Conroe, with a

population of over 72,000, is one of the fastest growing

communities in the Houston region and is the county seat

and power center of Montgomery County, the 25th fastest

growing county in the United States.

The Property presents an opportunity to develop a large-

scale, multi-use project akin to other nearby projects. The

size, location and natural beauty of the Property presents a

rare opportunity for a developer to create a master planned

community with unprecedented beauty, superior access,

and unmatched green-space amenity potential.

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Investment Highlights

Opportunity Highlights• Superior access along SH 242 and FM 1314

• Strong potential for a mix of development densities,

and single-family detached residential

• Minimal obstacles to development, with local

government favoring a comprehensive development of

the parcel in the near-term

• Local area experiencing consistent year-over-year

growth

• New Exxon Mobil Corporate Campus (currently under

construction) located just 9 miles Southwest of the site

LocationThe property is located on the eastern edge of Conroe,

Texas, approximately six miles east of The Woodlands, and

nine miles northeast of the new Exxon Mobil Campus. The

Property contains multiple points of ingress and egress

along SH 242 and FM 1314.

SchoolsThe property is located in the desired Conroe ISD. Conroe

ISD is one of the fastest growing school districts in the

State with an average enrollment growth of approximately

1,500 students per year. The Texas Education Agency (TEA)

released a preliminary set of accountability ratings for

school districts and campuses across the state in January

of 2017 based on a new A-F rating system. According to

the TEA, the new rating system measures year-over-year

district and student performance beyond State of Texas

Assessments of Academic Readiness results.

The new rating system looks at four separate domains on a

campus and district level. Conroe ISD scored: B|A|B|C

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BushIntercontinental

Airport

HobbyAirport

EllingtonField

Pearland

Sugar Land

Kingwood

Tomball

Missouri City

Pasad

TheWoodlands

Houston

22 miles

38 miles

8 miles

SITE

10 miles

to Conroe

Economic DriversHouston remains one of the strongest economies in the

North Houston, including The Woodlands, Shenandoah,

and Conroe, comprises one of the most active submarkets

within the greater Houston MSA, driven by population

growth, increased household income, employment growth

and major corporate investment and expansion.

Development ConceptThe property consists of densely forested areas and open

one potential layout for development and should not be

containing Preliminary Feasibility items, which outlines key

information related to the development of the site.

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9

1 100 acres

2 90 acres

3 40 acres

4 40 acres

5 831.21 acres

6 2,259.02 acres

10

Highlights

• Exxon Mobil’s global headquarters campus (just outside

Montgomery County) is open for business with some

14,000 employees, many of which relocated from other

states. The site is located ten miles south of Grand Lake

Park.

• Town Center in The Woodlands is a major employment

retail, residential, and entertainment facilities.

•

construction including the 327,000 square foot City

lower than the total Houston vacancy rate and down

nearly 3% from 2016.

• Lone Star Executive Airport is currently planning to

extend its major runway to 7,500 feet, which is expected

to expand business opportunities at the airport by

allowing larger jets to use the facility. In addition, Black

operator) facility, which is expected to increase the

• The 1,000 acre Conroe Industrial Park near the airport

continues to expand its employment base. The industrial

park is located 9 miles from Grand Lake Park.

• Nearby Lake Conroe is a major recreational amenity.

• The Conroe Independent School District offers a quality

public school system, supplemented by a select offering

of private college prep schools.

• Local government is supportive of quality development

in the region.

Montgomery CountyMeanwhile, Houston’s single family housing market has extended its hot streak in May, as realtors sold an all-time high of

9,744 units, a 12.3 percent increase year-over-year. Prices continue to hit new highs, as the median price of a single-family

home grew to $235,000, the highest median price of all time.

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ConroeThe U.S. Census Bureau rated Conroe as the fastest growing

city in the nation with a population over 50,000, having a

growth rate of 7.8% from 2015 to 2016 Located 40 miles

north of downtown Houston along Interstate 45, Conroe is a

rapidly growing city, rich with amenities and infrastructure.

The population (as of 2016) was 82,286, up from 36,811 in

2000, representing growth of 123%. With its proximity to

The Woodlands, Conroe is well positioned to continue its

growth pattern as the North Houston economy continues to

expand.

The WoodlandsThe Woodlands is an award winning master-planned

community located 32 miles north of Houston. Initially a

suburban bedroom community, it has grown to attract

multiple corporate headquarters to the area, and now

features campuses for the likes of Chevron Phillips,

Anadarko Petroleum Corporation, McKesson Corporation,

Hewitt Associates, Huntsman and more. Known for the nine

villages and districts that comprise The Woodlands, each

area has been thoughtfully developed to include shopping

centers, exceptional schools, extensive recreation facilities,

healthcare, and worship houses, much like a series of small

towns.

Quality of Life Established in 1974, The Woodlands may have started as

a suburban bedroom community, but it has grown to be

thriving destination of its own. As one of the country’s

become an international model for community planning

and development. The Woodlands has been thoughtfully

designed to preserve green space while delivering

convenient amenities and a true sense of community. Once

referred to by a visiting journalist as “the invisible city” due

to the ever present tree canopy, the Woodlands boasts over

6,950 acres of green space, including parks, golf courses,

greenbelts and forest preserves, and many of the area’s

amenities are accessible by pathways and trails.

The Woodlands is comprised of villages and districts,

ranging from an urban setting to gated communities, with

a variety of housing options in between. Each village has

its own schools, and is only minutes away from some of the

area’s best healthcare, recreation activities, as well as dining

and entertainment options.

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EducationEducation has long been held a top priority in The

Woodlands and Conroe, as evidenced by the lifetime

learning opportunities from preschool to graduate and

professional studies. The area is primarily served by the

highly-rated Conroe Independent School District, as well as

numerous private schools.

Residents in northern Houston also have the opportunity

to continue their education at the Lone Star College–

University Center in The Woodlands, with an enrollment of

over 7,500. A model distance learning program approved

by Texas Higher Education Coordinating Board, students

enrolled at Our Lady of the Lake University, Texas A&M,

Thomas undergraduate and graduate courses through LSR-

University Center.

HealthcareConvenient and comprehensive healthcare is important to

the well-being of any community. From emergencies to

surgery and childbirth to specialty services, healthcare in

The Woodlands continues to meet the growing needs of the

area.

Memorial Hermann-The Woodlands is a 351-bed state-of-

the-art facility, and the only Level III trauma center between

Houston and Dallas. Specialties include heart and vascular

services, a cancer center, a women’s center, imaging, and

pediatrics. Serving the community since 1985, it is one of 13

hospitals in the Memorial Hermann Healthcare System, one

of the top 15 healthcare systems in the country, and is the

St. Luke’s The Woodlands Hospital is part of the St. Luke’s

Episcopal System. Since opening in 2003, they have

continued to add services to the 192-private-bed hospital

through partnerships with The Texas Heart Institute, Texas

Children’s Hospital, and University of Texas M.D. Anderson

Cancer Center. In addition, numerous options for specialty

medical practitioners, doctors, dentists and clinics are

located throughout The Woodlands area.

RecreationThe Greater Houston metro area enjoys a subtropical

climate, with mild winter temperatures and hot summer

days that lend themselves to a variety of outdoor activities.

In Montgomery County, there is no shortage of outdoor

recreation opportunities that enrich the quality of life. From

other water sports activities, there is something for every

walk of life.

The Woodlands is well known for golf, having hosted

the PGA Houston Open in the past, as well as the LPGA

Samsung World Championship. With nine courses totaling

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162 holes for all skill levels, The Woodlands boasts Signature

courses from Arnold Palmer, Tom Fazio, Gary Player, and

Jack Nicklaus.

Lake Conroe provides the area with the best options for

water sports activities. At 21,000 acres, the lake was built

as an alternative water source by the city of Houston. Today

the lake has evolved into a recreation and event destination.

camp-sites ranging from primitive to deluxe cabins, as well

as hotels, motels, and residential development with access

to public and private docking services.

Retail & EntertainmentAs more companies – and more people – relocate

north of Houston, opportunities for shopping, dining,

and entertainment continue to grow. Conroe and The

Woodlands offer some of the area’s best shopping, from

specialty shops to malls and outlet centers. The Woodlands

offers the most comprehensive dining options, everything

Woodlands is also home to the Cynthia Wood Mitchell

Pavilion, a 16,000-seat performing arts center. Summer

home to the Houston Symphony, the venue also hosts a

variety of musical programming, from pops to classical and

opera.

The Woodlands, Texas

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15

Houston Area Highlights

Population & Job GrowthWith one of the strongest economies in the nation, Houston

is one of the nation’s fastest growing metropolitan areas,

expected to replace Chicago as the third-largest MSA in

America by 2020. The undeniable impact of the energy

sector, as well as elevated international trade through the

Port of Houston and a favorable business climate, has led

to consistent in-migration and economic expansion despite

the headwinds experienced during the Great Recession and

recent energy downturn.

The Houston Metro Area added 6,700 jobs in May, 2017

which nearly equals the area’s 20 year average of 6,800

jobs per month. According to the Texas Workforce

Commission (TWC), the 10-county Houston-Sugar Land-

Baytown MSA surpassed its pre-recession employment

populous metros to reach that milestone, recovering nearly

130 percent of jobs lost during the recession.

The Houston-Sugar Land-Baytown Metropolitan Statistical

area added 45,300 jobs in a 12 month period in ending May

the previous 12 month period at the height of the energy

downturn, in which the region added 4,000 jobs. The fact

that Houston has consistently added jobs throughout the

downturn is a testament to the strength and resiliency of

the region.

Houston’s May 2017 unemployment rate stands at 5.1

percent down from 5.8 Percent in May 2013 and down

nearly 300 basis points from its peak of 8.2% in 2009.

Today, over 3 million people are employed in the Greater

Houston MSA, an increase of nearly 500,000 jobs recorded

during the depths of the Great Recession.

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Key Industries

EnergyHouston is considered to be the U.S. energy headquarters

and a global leader in virtually every segment of the oil

and gas industry. The energy industry’s role in Houston’s

growing economy is undeniable. Houston is home to

over 4,800 energy-related establishments, including

establishments, and manufacturers and wholesalers of

energy-sector products. The concentration of energy

experience and expertise has translated to a large number

of corporate relocations to the Houston region, including 24

Fortune 500 and 46 fortune 1000 companies.

Eagle Ford Shale – The Eagle Ford Shale is quite possibly

the largest single economic development in the history of

the state of Texas. In 2013 alone, more than $30 billion was

invested in the area as a result of the shale boom. There are

multiple, rapidly growing unconventional oil and gas plays

across the U.S., but the Eagle Ford Shale (“EFS”) in South

Texas stands above other plays because of its heavy liquids

content, sprawling existing and proposed infrastructure,

high initial oil production rates, and proximity to some of

the largest energy markets in North America. EFS offers

geology favorable to rapid development, and is located

near many existing processing and fractionation plants,

multiple pipelines, and other infrastructure development.

Exxon Mobil – After acquiring 385 acres of undeveloped

land just south of the Woodlands, Exxon Mobil built what

is now the largest corporate complex worldwide. To date

over 10,000 employees have begun working at this new

facility. The campus was designed to be a state-of-the-

and services demands to the Montgomery County area,

including Conroe and The Woodlands.

International TradeHouston is the leader in international trade in the Gulf

States. So far in 2017, Port Houston has processed

approximately 20 million tons of cargo, up 13 percent

over the same point last year. Overall, the Port of Houston

handled $162.8 billion in trade in 2016 including $93 billion

in exports, making it the largest export market in the United

States.

expected to continue to outperform historical total in 2017.

Although petroleum products top imports and exports, if

they were subtracted from the trade through all customs

districts, Houston would drop only one spot in the rankings.

that based on those commodities alone, Houston would still

rank in the top 10 international trade districts. International

trade is also important to Houston with respect to the

demographic makeup of the city.

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Houston boasts nearly 1.5 million foreign born residents

with over 200,000 arriving since 2010. Additionally,

Houston houses 94 consulates, as well as 19 foreign banks

from 9 different countries. Houston is home to more and

5,000 international companies, more than 1,000 of which

250,000 jobs to the Houston economy.

Health Care & Life ScienceThe Houston region employs approximately 325,000

individuals in the life science and healthcare professions,

including biotechnology. Home to more than 4,000 life

science states in the country.

Houston is home to some of the best health care and life

science organizations in the nation, including the Texas

Medical Center (TMC). As the world’s largest medical

center, TMC contains 56 of the most renowned medical

research and academic institutions in the world, including

21 hospitals, three medical schools, six nursing schools,

two schools of pharmacy, as well as schools of dentistry

and public health. Exceeding thirteen hundred acres

and grossing nearly 45.8 million square feet, the TMC is

larger than downtown Dallas, and the 7th-largest business

district in the United States. A top medical destination,

TMC receives over 8 million visits annually and employs

nearly 106,000 people, including physicians, scientists,

researchers and other advanced degree professionals in the

life sciences. TMC generates an annual economic impact of

over $20 billion for the Houston region.

Engineering

economy. It reaches into every sector from private ventures

to energy to public works. As the metro area grows and

the economy continues to thrive, the need for developing

roads and buildings, providing water and waste water

solutions, as well as providing support to the oil and

gas industries, creates a strong demand for advanced

engineering and related technologies that meet these

needs. Houston’s extraordinary capabilities meet these

wide-ranging challenges on local, regional, national and

international levels. Local engineers touch nearly every

industry in Houston, from aerospace, chemicals and plastics,

environmental, forestry, construction management, land

development, power and energy, project management,

public works and transportation infrastructure.

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ChemicalsHouston is a global leader in the chemical industry, with

the capacity to produce nearly 41 percent of the base

chemicals used by downstream operations. With access

to comprehensive, developed infrastructure that includes

the most elaborate pipeline network in the world as well

as deep-water port access, Houston is a key production

center for specialty chemicals. According to the American

Chemistry Council, $85 billion worth of petrochemical

projects in the United States have been started or

completed since 2010, most of which can be found along

the Gulf Coast in or near the Houston MSA. In addition to

the exporting of crude oil derivatives meant for fuel or

lubricants, an enormous resins and plastics production

capability has been constructed in the last decade. Thanks

to this, Houston is home to the overwhelming majority of

plastics and resin production capacity in North America.

Nearly every major chemical company operates a plant

near Houston’s ship channel, including BASF Corporation,

BP, Chevron Phillips, DuPont, Shell, and Dow Chemical.

Recently, Exxon Mobil has announced plans to invest $20

plants on the Gulf Coast.

AerospaceHouston is home to Johnson Space Center, NASA’s largest

research and development facility. Located 24 miles

southeast of downtown on 1,620 acres, the JSC also serves

as the lead NASA center for communication with and

support of the International Space Station (ISS), a 16-nation

collaborative effort led by the U.S. The ISS is the largest,

most complex facility to operate in space.

As an aerospace hub for NASA-developed technology, the

metro area attracts the nation’s best high-tech professionals

over 50 aerospace contractors located in the area. In

all, JSC annually manages over $4.42 billion in federal

aerospace contracts, which include a local payroll of over

$2.0 billion annually. In addition to the considerable impact

to the Houston region throughout the Mercury, Gemini,

Apollo, and Space Shuttle programs, Houston is home to

dozens of companies that have contributed to NASA’s new

Orion Program.

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20

Key Markets

country. With over 165 million square feet of Class A

at 19.6 percent. Due to the energy downturn, Houston

has seen a spike in the amount of sublease space on the

market. However, there remains room for optimism. As

of the second quarter of 2017, the sublease inventory has

contracted in three consecutive quarters to 11.1 million

square feet, which represents a decrease of over one million

has returned to the market, as sales activity in 2017 has

proved to be much more robust following a slower 2016.

The construction pipeline of 2.3 million square feet is now

at its lowest level since 2012 and well below its ten-year

quarterly average of 4.7 million square feet. These projects

are well pre-leased, with just under seventy percent of the

developing inventory already spoken for. Looking to the

immediate future, 1.5 million square feet of the 5.8 million

square feet of active tenant requirements in the market is

lead all industries in active space requirements, accounting

for over 3.4 million square feet

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IndustrialHouston is an expanding industrial market characterized

not only by high-tech manufacturing and traditional

distribution and logistics tenants, but increasingly by large-

box eCommerce and downstream petrochem producers.

The region is utilized by many national and international

companies due to its strategic location, which includes the

areas of Conroe and The Woodlands. Positioned halfway

between the East and West coasts, only hours by air from

any metro area in the country, and home to one of the

nation’s largest and fastest growing ports.

Houston has one of the largest concentrations of industrial

space in the nation, with broad-based expansion underway.

Retail distribution, E-commerce, and plastics manufacturing

will continue to drive demand for warehouse and

distribution space. Demand from the Port of Houston, the

manufacturing industry, as well as Houston’s central location

as a logistics hub have driven industrial vacancy downward.

The Houston industrial market has maintained a healthy 5.1

percent vacancy rate despite over 43 million square feet of

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RetailThe robust local economy has had an undeniable effect on

the jobs lost during the recession, Houston’s retail market is

seeing consistent growth throughout the MSA. The leasing

market held up well in 2017, with new demand coming from

the fast casual industry across the metro, with particular

expansion occurring around Houston’s new Grand Parkway.

Although the city has suffered from big box closures like

Sears and Borders, robust demand has made it possible to

fallen to less than 5.5 percent marketwise. It is expected

that as long as the job market continues to improve and

in-migration numbers drive population growth, continued

demand for housing will have a directly positive effect on

the retail industry as well.

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Multifamily & ResidentialThe Houston apartment market continues to gather

and following negative rent growth in 2015. Houston’s

multifamily market now is facing the prospect of a much

smaller pipeline of new deliveries and more stable energy

net units absorbed, while the quarterly average from 2015

and 2016 was approximately 2,250. The stronger demand,

can be attributed to a growing population – both naturally

and by in-migration from outside the region.

According to the Greater Houston Partnership, Houston

added over 125,000 in overall population and people

continue to move to the city to capitalize on the growing

economy. Harris County is now the third-largest county in

the U.S. and continues to be a haven for moderately priced

housing, job opportunities, and elevated levels of retail and

entertainment development. While the perceived bottom

of the current Houston apartment cycle began during the

inventory, slowing construction and consistent population

growth will propel Houston to market equilibrium in the

near future.

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JLL Houston1400 Post Oak Boulevard

Houston, Texas 77056

Simmi JaggiSenior Vice President

simmi.jaggi@am.jll.com+1 713 888 4098

Elizabeth ClampittSenior Vice President

elizabeth.clampitt@am.jll.com

+1 713 888 4075

Dan BellowPresident

dan.bellow@am.jll.com

+1 713 888 4001