1111Gillingham

Su g ar Land, Tex as

Rusty Tamlyn, CCIM, SIOR Trent Agnew

Senior Managing Director Analyst
Tel (713) 852-3561 Tel (713) 852-3431
rtamlyn@hfflp.com tagnew@hfflp.com

www.hfflp.com

9 Greenway Plaza, Suite 700 • Houston, Texas 77046 • Tel (713) 852-3500 • Fax (713) 852-3490
Property Highlights

The Investment Sales Group of Holliday Fenoglio Fowler, L.P. is pleased to offer for
sale the ownership’s 100% fee simple interest in 1111 Gillingham, a 489,263 square
foot Class A 100% HVAC manufacturing facility built in 1995-1997 that is currently
occupied by two (2) tenants with expirations in 2013 and 2019. 1111 Gillingham is
located within the prestigious Sugar Land Business Park in southwest Houston, home to an
impressive list of corporate users.

Address: 1111 - 1113 Gillingham - Sugar Land, Texas 77478

Land Size: 33.4709 acres
NRA: 489,263 square feet
% of Office Space: 14.5% Impressive List of Corporate Neighbors, Strong Submarket
Year Built: 1995 - Phase I (266,663 SF); 1997 - Phase II (222,600 SF) Sugar Land Business Park is one of five major business parks located within Fort Bend County and is generally regarded
Parking: 1,176 (2.40/1,000 SF) as the most desirable of the five due to its location, amenity base, and infrastructure. As a result, a number of high-
profile corporate users have developed and/or leased industrial facilities within the park, including Tramontina USA,
Baker Hughes, AmeriSource Bergen, Thermo Fisher Scientific, Schlumberger, and Ashley Furniture. Planned Community

Investment Highlights Developers began developing the park in 1977 and the park sold out in 2005. The entire Sugar Land industrial submarket

Outstanding Industrial Location consists of over 14 million square feet of industrial space and currently enjoys an occupancy rate of 94.6%. A number

1111 Gillingham is located along a high-profile street in arguably Houston’s premier industrial park, Sugar Land Business of tenants, both in Sugar Land Business Park and the larger Sugar Land industrial market, have manufacturing operations

Park, a 902 acre, mixed-use, deed restricted business park near the intersection of U.S. Highway 59 and U.S. Highway requiring 100% HVAC that would fit well with the improvements in place at 1111 Gillingham.

90A in the southwest suburb of Sugar Land. The park has frontage on four major thoroughfares: U.S. 90A, Eldridge Road,
Institutional Ownership, New Roof
West Airport Boulevard, and Dairy Ashford Road. 1111 Gillingham is located within a mile of the U.S. Highway 59 and
Developed in the mid-1990’s, 1111 Gillingham has been either owned by the user or by an institution since inception. As
U.S. Highway 90A intersection, providing it easy access from both surrounding residential and commercial areas, along
a result it is in remarkable physical condition and should require very little capital on a go-forward basis. The current owner
with downtown Houston and other parts of the city. Ongoing infrastructure improvements in the area will only enhance the
is installing a new roof which will be subject to a 20-year warranty. In addition, Suntron has a 10-ton overhead bridge
area’s accessibility and cement Sugar Land Business Park as the preferred industrial location within southwest Houston.
crane that can run almost the entire length of its space, a great feature to have if a tenant requires it.

Considerable Tenant Commitment

1111 Gillingham was built by Suntron Corporation in 1995. Suntron occupied the entire facility until 2006, when
they sold the building to the current owner. At that time, Suntron downsized by approximately one-half to its current
footprint and the new owner put several protective measures in place to ensure that Suntron would remain through
the lease term, which runs until March 2013. These measures include a $1.0 million “Deferred Purchase Price”
and two letters of credit totaling $2.0 million. This lease collateral will be assigned to the Buyer upon a sale.
In 2008, FairfieldNodal signed a long-term lease, which expires in January 2019 and moved their headquarters into
the facility. Fairfield has invested over $14 million of its own capital to improve its space, including the installation
of a large server room and substantial increases to the electrical capacity including six 225kVA Liebert FPCs and
four Leibert FDCs. Due to their considerable investment, we believe the likelihood of Fairfield vacating in the future is
substantially mitigated.
Resilient Industrial Market
Houston’s industrial market has remained steady compared with its peers across the country. At the end of the fourth quarter
2009, the city’s 272 million square feet of inventory averaged occupancy of 89.5%, with warehouse space faring even
better at 90.1%. Given a negligible construction pipeline of only 1.24 million square feet, the market is now poised to
participate in the economic recovery currently taking shape and rental rates should show strong growth as absorption picks
up, particularly in submarkets like Sugar Land, where there is very little overhang of new supply.
Rebounding Local Economy
Houston is forecast to remain one of the nation’s most robust economies. The Houston MSA added 18,200 jobs in the
last three months of 2009 and several economists project employment growth of approximately 40,000 jobs in 2010.
Furthermore, Moody’s economy.com recently published forecasts predicting Houston will be #1 in both employment and
population growth through 2013.

1111Gillingham w w w . hff l p. c o m
Property Highlights
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1111Gillingham w w w . hff l p. c o m
Contact Information

Rusty Tamlyn, CCIM, SIOR

Senior Managing Director
Phone (713) 852-3561 TEXAS
MEDICAL
GALLERIA CBD CENTER
rtamlyn@hfflp.com

Trent Agnew WEST SAM HOUS TON TOLLW

AY

Analyst US 59

Phone (713) 852-3431

tagnew@hfflp.com

HOLLIDAY FENOGLIO FOWLER, L.P.

BAKER HUGHES
9 Greenway Plaza
Suite 700 TRAMONTINA

TRAMONTINA
Houston, Texas 77046 W AIRPO RT BLVD USA HEADQUARTERS

Phone (713) 852-3500 THERMO

ELECTRON
Fax (713) 852-3490 ASHLEY
TRAMONTINA MANUFACTURING
FURNITURE
G IL LI N
GHAM
www.hfflp.com LN

TRAMONTINA 1111 GILLINGHAM

LAND

ELDR
ID G E
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© 2010 Holliday Fenoglio Fowler, L.P. HFF (NYSE: HF) operates out of 17 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry. HFF offers clients a fully
integrated national capital markets platform including debt placement, investment sales, structured finance, private equity, note sales and note sale advisory services and commercial loan servicing.

Holliday Fenoglio Fowler, L.P. (“HFF”) has been engaged by the owner of the property [properties] to market it [them] for sale. Information concerning the property [properties] described herein has been obtained from sources other than
HFF and we make no representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all references to age, square footage, income, expenses and any other property specific information
are approximate. Any opinions, assumptions, or estimates contained herein are projections only and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a buyer. Buyers should
conduct their own independent investigation and rely on those results. The information contained herein is subject to change.