Energy Crossing I

Location: Houston, Texas

Capital Commercial Investments, Inc. (“CCI”) is pleased to present our latest investment opportunity, Energy Crossing I, located at 15021 Katy Freeway (“EC1”) in Houston, Texas. CCI is under contract on Energy Crossing I for $17,250,000 ($72/SF) with closing scheduled on July 11th. The Property enjoys a highly visible location along the Katy Freeway (I-10) in Houston’s sought-after Energy Corridor submarket. EC1 is strategically positioned approximately thirty (30) minutes from Downtown Houston, twenty-five (25) minutes from the Houston Galleria, and fifteen (15) minutes from Downtown Katy, providing excellent connectivity to key business districts and desirable suburbs. The surrounding area features myriad corporate headquarters, prestigious residential neighborhoods, including Memorial and Cinco Ranch, and is in close proximity to various amenities such as dining, entertainment, and recreation. Capital Commercial Investments (CCI) invites you to explore an ultra-contrarian opportunity in the Texas suburban office market, which has quietly outperformed urban areas. Right now, there is an opportunity to purchase office properties at an incredible discount, and here's why: Constructed in 2008, this 6-story, 240,166 SF property features a 3.87/1000 SF parking ratio with 888 garage spaces and 42 surface space (929 total spaces). Energy Crossing I offers efficient floor plans, making it ideal for a large corporate user or multiple tenants, thanks to its average floorplates of 40,000 SF. The building’s first-generation space is in excellent condition, enhanced by high-end finishes like polished granite floors, Venetian plaster, and floor-to-ceiling glass with sound-dampening glazing, positioning it as a premier suburban Houston office asset. The building contains multiple amenities of key importance to tenants in today’s market: a fitness center of exceptional quality, offering free weight and machine workout equipment, within Energy Crossing II is accessible to tenants in Energy Crossing I. The facility is equipped with club-style locker rooms with controlled access for maximum security and after-hours access. On site delicatessen and café. Property Overview Completed in January 2008, the 240,166 square foot, “Class A” office building is ideally suited for corporate users looking to attract top talent in one of the most desirable submarkets in Houston. CCI has the opportunity to acquire the Property at a total purchase price of $17.25 million, equivalent to 17% of the estimated replacement cost of $114.1 million ($475/SF) of the building and four-level parking garage. This competitive price, significantly below the estimated replacement cost, provides substantial optionality and basis-play pricing power in a prime office submarket. Energy Crossing I is currently home to several tenants, including MD Anderson, Entech Civil Engineers, and Morgan Stanley. The Property's rectangular floor plates average approximately 40,000 square feet flexibility for future potential occupants, with the ability to accommodate a variety of leasing configurations suitable for both large corporate users and smaller tenants in efficient, modern envelopes. The Property has been institutionally owned and managed since its completion, showcasing a commitment to quality and tenant satisfaction. Energy Crossing I is designed to LEED specifications and is currently LEED certified, offering energy-efficient technologies and wellness attributes that are increasingly sought after by tenants. The architectural design includes polished granite floors and floor-to-ceiling glass, creating an exceptional and modern workspace. With a parking garage and surface parking providing 929 spaces (3.87 spaces per 1,000 Square feet), Energy Crossing I offers an abundance of parking, enhancing its appeal to tenants. The Property's location within the Energy Corridor, combined with its high-quality amenities and modern design, and its adjacency to Katy ISD the #1 ranked Houston public school district , aligns perfectly with the current trend of tenants seeking premium office spaces in submarkets that allow access to top school districts. This makes Energy Crossing I a highly desirable choice for businesses looking for a top-tier office experience in Houston's dynamic market. Location Strategically located along Interstate 10, Energy Crossing II offers excellent connectivity to major business districts, including Downtown Houston and the Galleria. “Class A” office property built in January 2008 by Opus, currently 38.8% occupied Submarket expertise: CCI owns three (3) other buildings in the immediate vicinity and has already signed over 100k SF of new leases at these properties since mid-2024 Outperformance of high-quality office assets in Energy Corridor: Avg Weighted Occupancy: 85% (5-Star Weighted Avg Occupancy: 90%1, 4- Star Weighted Avg Occupancy: 82%) Prime frontage on the Katy Fwy (I-10), adjacent to 4-way exit. Avg. Vehicles Per Day (2022): 263,771 The Right Time to Buy: Continued “flight-to-quality” trends; companies moving closer to their employees in suburbs west of Houston make the Energy Corridor one of the most attractive office submarkets in the US for real estate investors Capitalization CCI is seeking total capital commitments for the CCI-Energy Crossing I partnership of $7,500,000. The $7.5 million of equity will be available as Class A LP shares, Class B LP shares or 12% notes. Any LP share is available as full shares of $100,000, half shares of $50,000 and quarter shares of $25,000. Minimum investment is $25,000. INVESTMENT OPTION 1 - Class A LP Shares $25,000 Minimum (Up to $7,500,000 Available) Investors who purchase Class “A” Units will become Class “A” Limited Partners in the Partnership. 15% Preferred return, and 15% pro-rata allocation of net profits. CCI anticipates accruing the preferred return to the limited partners until the property is sold. Projected Returns 3 Year Hold – 23.4% IRR and 1.88x equity multiple 4 Year Hold – 19.4% IRR and 2.03x equity multiple. INVESTMENT OPTION 2 - Class B LP Shares $25,000 Minimum (14% Preferred Return, Accrued) Investors who purchase Class “B” Units will become Class “B” Limited Partners in the Partnership. 14% Preferred return, and no additional allocation of net profits. The LP share capital will be guaranteed by Paul D. Agarwal. CCI anticipates accruing the preferred return current to the limited partners until the property is sold. INVESTMENT OPTION 2 –Note $25,000 Minimum (12% Yield Paid Current) Investors who purchase Energy Crossing II notes will have Class “A” Limited Partners shares as collateral for the Note. The Note principal and interest will be personally guaranteed by Paul D. Agarwal. The note will have a 12% yield and is paid current monthly. Investment term options of either 2 or 3 years. Funds received will be accepted on a first come first serve basis until fully subscribed . Due to high investor demand we anticipate this investment to subscribe quickly. We also highly encourage all CCI employees to take advantage of this opportunity.