ABOUT

US

Quadrant Investment Properties is

a real estate investment company
that acquires and redevelops office
2012
formed
buildings with a focus on creating
communities for the next generation
user. The company creates value on an
1.66
million sf redeveloped
asset specific basis by physically
repositioning buildings while
implementing an aggressive,
$210
million placed
proactive ownership approach. QIP is
a best-inclass operator, providing the
highest level of service to their clients,
tenants, and investors.
 B A
E F
3102 Oak Lawn Avenue F T
Dallas, TX 75219 O E
R R
E

. The Centrum consists of 336,140 square feet of office space and 56,824 square feet of retail
space for a total of 392,964 square feet
. Located on Oak Lawn Avenue and Cedar Springs adjacent to retail and multifamily
. Over a $25 MM renovation added amenities like a tenant lounge, conference rooms and
fitness center
. Successfully utilized bridge loan totaling $66.1 MM for purchase and renovation

. Office redevelopment in Turtle Creek submarket

DEAL
PROFILE . Value-add creation through leasing and rental rate growth

ACQUISITIONS PROJECT SUMMARY CURRENT PROJECT SUMMARY

Project Size 373,819 sf Project Size 392,964 sf

Occupancy 74% Occupancy 79%

In-place rents (BY+E) $17.88 In-place rents (NNN) $24.14

Market rate (BY+E) $31.51 Market rate (NNN) $30.00

Avg. remaining lease term 3.4 yrs Avg. remaining lease term 4.1 yrs

PROJECT METRICS

Parking ratio 3:2 : 1000

Tenant retention ratio 16:35

Year Built 1987

Capital Improvements +$25 MM

Stories 11

Floor Plates 28,500 sf

 B A
E F
750 N Saint Paul Street F T
Dallas, TX 75201 O E
R R
E
. Newly constructed tenant lounge creates greater tenant community

. QIP’s aggressive spec suite program has been successful in increasing rental rate

. Impeccable location adjacent to the Art’s District and Klyde Warren Park

. 360 degree view of the Dallas skyline

. Future capital investment in the area is being focused towards multifamily and retail

. Initial In-place rents 23.26% below market

. Value add investment in Dallas CBD

DEAL
PROFILE . Prestigious tenant base including Costar and D Magazine

ACQUISITIONS PROJECT SUMMARY CURRENT PROJECT SUMMARY

Project Size 273,217 sf Project Size 273,217 sf

Occupancy 77% Occupancy 73%

In-place rents (BY+E) $20.43 In-place rents (NNN) $13.96

Market rate (BY+E) $26.62 Market rate (NNN) $20.00

Avg. remaining lease term 3.9 yrs Avg. remaining lease term 2.7 yrs

PROJECT METRICS

Parking ratio 1:4 : 1000

Tenant retention ratio 25:42

Year Built 1983

Capital Improvements $3 MM

Stories 22

Floor Plates 13,700 sf

 B A
E F
Hall Street AT T H E C E N T R U M
750 N Saint Paul Street
Dallas, TX 75201
F
O
T
E
R R
E

. Located across the street from The Centrum giving Hall St tenants access to Class A amenities

. Has great access to tenant amenities, retail and restaurants featuring a Walk Score® of 89
. Moroch Holding occupies 63,176 square feet (54.8% of total building) and has a lease
expiration date of 01/31/2024 providing consistent cash flow with contractual rent escalations
. In-place rental rates of $22.82 per square foot rental rates are 31% below Turtle Creek
submarket

. Stable rent roll with diversified tenant base

DEAL . Value-add return profile

PROFILE
. Initial rental rates below market providing opportunity for
significant value growth

ACQUISITIONS PROJECT SUMMARY CURRENT PROJECT SUMMARY

Project Size 112,225 sf Project Size 115,254 sf

Occupancy 89% Occupancy 74%

In-place rents (BY+E) $22.82 In-place rents (NNN) $11.64

Market rate (BY+E) $30.00 Market rate (NNN) $24.00

Avg. remaining lease term 4.1 yrs Avg. remaining lease term 5.5 yrs

PROJECT METRICS

Parking ratio 3:0 : 1000

Tenant retention ratio 14:20

Year Built 1982

Capital Improvements $1.2 MM

Stories 11

Floor Plates 12,500 sf

 PARKSIDE : EXIT ANALYSIS
Purchase Date November 2012
Purchase Price $9,090,000
Price / SF $92.76

PORTFOLIO SUMMARY
Sale Date December 2014
GROSS NET DEFEASANCE
Sale Price $14,180,000 $14,180,000
Price / SF $144.70 $144.70
Project Level IRR 56.89% 56.89%
Original Pro-Forma Project IRR 22.14%
Project Level Equity Multiple 2.30x 2.30x
OVERVIEW : EXIT ANALYSIS
Limited Partner IRR 48.82% 48.82%
Original Pro-Forma LP IRR 20.76%
Total Rentable Square Feet 572,158 sf Limited Partner Equity Multiple 2.10x 2.10x

Total Acquisition Capitalization $58,690,000 UNION BOWER : EXIT ANALYSIS

Avg. Price / SF $102.58 Purchase Date July 2013

Purchase Price $13,100,000
Avg. Hold Length 3.1 yrs Price / SF $43.14
Sale Date November 2016
GROSS NET DEFEASANCE
GROSS NET DEFEASANCE
Total Disposition Capitalization $85,486,008 $81,535,722 Sale Price $20,106,008 $17,845,646
Price / SF $66.21 $58.76
Avg. Price / SF $149.41 $142.51
Project Level IRR 29.40% 20.20%
Wtd. Avg. Project Level IRR 30.86% 28.08% Original Pro-Forma Project IRR 19.46%
Project Level Equity Multiple 2.20x 1.75x
Wtd. Avg. Pro-Forma Project IRR 18.32% Limited Partner IRR 26.13% 18.40%

Project Level Equity Multiple 2.05x 1.93x Original Pro-Forma LP IRR 17.81%
Limited Partner Equity Multiple 2.03x 1.66x
Wtd. Avg. Limited Partner IRR 30.09% 27.66%
UPTOWN PORTFOLIO : EXIT ANALYSIS
Wtd. Avg. Pro-Forma LP IRR 17.31%
Purchase Date April 2014
Limited Partner Equity Multiple 1.90x 1.79x Purchase Price $36,500,000
Price / SF $214.11
Sale Date July-2017-Aug-2017
GROSS NET DEFEASANCE
Sale Price $51,200,000 $49,510,076
Price / SF $300.34 $290.42
Project Level IRR 24.23% 23.20%
Original Pro-Forma Project IRR 16.82%
Project Level Equity Multiple 1.92x 1.87x
Limited Partner IRR 21.66% 20.95%
Original Pro-Forma LP IRR 16.15%
Limited Partner Equity Multiple 1.80x 1.76x
2811 MCKINNEY 2811 McKinney Avenue
Dallas, TX 75204

UPTOWN PORTFOLIO
. 95% leased with diverse tenant mix

. Property required minimal capital improvement for significant upside

. Building construction higher quality than competitive set

. Unique location in Uptown near high end Class AA real estate

DEAL . Class B property located on the busy McKinney Avenue
PROFILE
. Core investment characteristics with value add return

ACQUISITIONS PROJECT SUMMARY CURRENT PROJECT SUMMARY

Project Size 94,095 sf Project Size 94,095 sf

Occupancy 98% Occupancy 95%

In-place rents (BY+E) $21.35 In-place rents (NNN) $21.02

Market rate (BY+E) $27.00 Market rate (NNN) $23.00

Avg. remaining lease term 4.4 yrs Avg. remaining lease term 3.0 yrs

PROJECT METRICS

Parking ratio 3:04 : 1000

Tenant retention ratio 17:25

Year Built 1985

Capital Improvements $1.1 MM

Stories 3

Floor Plates 15,276 sf

3400 CARLISLE 3400 Carlisle Street
Dallas, TX 75204

UPTOWN PORTFOLIO
. 92% leased with diverse tenant mix

. Requires minimal capital improvement for significant upside

. Uptown Class B office market showing con-sistent growth prior to acquisition

. Class B office building

DEAL . Value add returns with core property characteristics
PROFILE
. Stabilized property with rents significantly below market

ACQUISITIONS PROJECT SUMMARY CURRENT PROJECT SUMMARY

Project Size 76,381 sf Project Size 76,381 sf

Occupancy 98% Occupancy 92%

In-place rents (BY+E) $23.42 In-place rents (NNN) $16.18

Market rate (BY+E) $27.27 Market rate (NNN) $23.00

Avg. remaining lease term 3.8 yrs Avg. remaining lease term 3.3 yrs

PROJECT METRICS

Parking ratio 3:43 : 1000

Tenant retention ratio 12:18

Year Built 1985

Capital Improvements $500 K

Stories 5

Floor Plates 15,276 sf

 B A
E F
HILLCREST OAKS 6600 - 6606 LBJ Freeway
Dallas, TX 75240
F
O
T
E
R R
E

. Excellent exposure/accessibility to recently improved LBJ Freeway and Quorum Bent Tree
area
. Existing vacancy has been upgraded with superior finishes; move-in ready

. QIP has implemented an aggressive spec suite plan that has proven successful in pushing rate

. Well-positioned next to affluent neighborhoods

. Suburban office building

DEAL . Significantly leased providing consistent return
PROFILE
. Stable rent roll with diversified tenant base

ACQUISITIONS PROJECT SUMMARY CURRENT PROJECT SUMMARY

Project Size 181,072 sf Project Size 183,980 sf

Occupancy 58% Occupancy 89%

In-place rents (BY+E) $13.71 In-place rents (BY+E) $16.68

Market rate (BY+E) $15.50 Market rate (BY+E) $19.50

Avg. remaining lease term 2.7 yrs Avg. remaining lease term 5.2 yrs

PROJECT METRICS

Parking ratio 3:32 : 1000

Tenant retention ratio 9:18

Year Built 1983

Capital Improvements +$3.7 MM

Stories 2

Floor Plates 44,609 sf

PARKSIDE 16301 Quorum Drive
Addison, TX 75001

. Achieve value add returns on an asset with core plus characteristics

. Property is currently 98% leased with diverse tenant mix

. Property constructed in 1998 making it the newest property in the competitive set

. Value add office investment

DEAL . Modern glass and brick features make Parkside Corporate Cen-
PROFILE
ter a unique asset in its competitive set

ACQUISITIONS PROJECT SUMMARY CURRENT PROJECT SUMMARY

Project Size 97,995 sf Project Size 97,995 sf

Occupancy 98% Occupancy 95%

In-place rents (BY+E) $16.28 In-place rents (BY+E) $18.70

Market rate (BY+E) $17.00 Market rate (BY+E) $21.00

Avg. remaining lease term 3.8 yrs Avg. remaining lease term 3.5 yrs

PROJECT METRICS

Parking ratio 3:77 : 1000

Tenant retention ratio 7:12

Year Built 1998

Capital Improvements +$700 K

Stories 2

Floor Plates 24,500 sf

PRESTON TRAIL 17330 Preston Road
Dallas, TX 75240

. Investment offers opportunity to reposition a stabilized multi-tenant Class B office building

located in the mature North Dallas submarket
. Renovation strategy: Update lobby and perform exterior cosmetic improvements

. Current tenancy in need of internal square foot expansion

. Significantly lower in-place rents than the surrounding competitive set

. Two story suburban office building

DEAL . Value add investment opportunity
PROFILE
. Off-market transaction

ACQUISITIONS PROJECT SUMMARY CURRENT PROJECT SUMMARY

Project Size 117,530 sf Project Size 120,418 sf

Occupancy 95% Occupancy 82%

In-place rents (BY+E) $16.45 In-place rents (BY+E) $17.74

Market rate (BY+E) $18.30 Market rate (BY+E) $20.00

Avg. remaining lease term 2.3 yrs Avg. remaining lease term 2.6 yrs

PROJECT METRICS

Parking ratio 4:46 : 1000

Tenant retention ratio 13:30

Year Built 1982

Capital Improvements $1.4 MM

Stories 2

Floor Plates 59,882 sf

 B

UNION BOWER 1001 Union Bower Drive E

Irving, TX 75061 F
O
R
E

. Property is under managed with under capitalized ownership

. The seller was distressed and forced to sell the property

. Building provides a diverse income stream with twenty existing tenants

. Six building industrial park portfolio A

F
DEAL . Located near I-820 and I-35W intersection T
PROFILE E
. Building functionally superior than all competitive properties R

ACQUISITIONS PROJECT SUMMARY CURRENT PROJECT SUMMARY

Project Size 302,848 sf Project Size 303,687 sf

Occupancy 83% Occupancy 95%

In-place rents (NNN) $3.60 In-place rents (NNN) $4.15

Market rate (NNN) Avg. $4.25 Market rate (NNN) $5.64

Avg. remaining lease term 3.9 yrs Avg. remaining lease term 3.5 yrs

PROJECT METRICS

Parking ratio 1:78 : 1000

Tenant retention ratio 14:24

Year Built 1996

Capital Improvements +$950 K

Stories 1

Floor Plates 50,614 sf

QIP TEAM MEMBERS

CHAD COOK formed QIP in 2012. Prior to QIP Chad was Vice President,
Acquisitions for Hillwood Investment Properties, where, from 2004 to 2012,
he focused on development and acquisition opportunities in numerous markets
nationally. In addition to helping lead the company’s acquisition team Chad
coordinated over $1 billion in dispositions. He also played an integral role
in the sourcing and structuring of numerous institutional join ventures and
development partnerships. Prior to joining Hillwood, Chad was a Director of
Leasing and Dispositions with Emerson Partners, a Dallas based owner and
operator of office and industrial properties.

KIMBERLY MAY joined QIP in 2015 to serve as the director of asset

management, overseeing the daily operations of QIP’s o ce and industrial
portfolio. Prior to joining QIP, Kimberly spent 14 years with GE Capital Real
Estate with her most recent role as an asset manager overseeing a $500 million
portfolio of debt and equity asset located across the United States. Kimberly’s
focus with GE was primarily on troubled debt management, restructuring, and
REO repositioning and disposition. While with GE, Kimberly worked closely
with third party professionals to execute upon value enhancement strategies,
capital projects, leasing, and disposition objectives. Kimberly is a graduate of
Baylor University with a BBA in Real Estate from the Hankamer School of
Business.

TY LEE joined QIP in 2016 as Director of Project Management to oversee

improvements and related activities for QIP’s portfolio of assets. From 2004 to
2014 he worked as a registered architect designing and managing commercial,
institutional and corporate projects. Most recently, Ty was a Senior Project
Manager at CBRE and personally oversaw more than $75 million dollars of
project costs. His background and experiences ensure a creative, thorough and
rigorous approach to construction management.
QIP TEAM MEMBERS QIP ADVISORY BOARD
BRENDAN DEMUTH joined QIP in 2017 as Director of Acquisitions, MICHAEL YOUNG has been President of Quadrant Capital Partners, Inc. since November
overseeing office and industrial underwriting, as well as capital structuring 2003. From 1994 to October 2003, Mr. Young served as Managing Director and Head of
for acquisitions. From 2015 to May 2017, Brendan was a part of JLL’s Real Estate Investment Banking for CIBC World Markets. Mr. Young was appointed Global
Southwest Capital Markets team focusing on Office Investment Sales. Head of Real Estate for CIBC World Markets in 1997. He has been Trustee of Calloway
During his tenure at JLL, Brendan was a key team member overseeing Real Estate Investment Trust (TSX), now SmartREIT, since November 2003 and currently
underwriting, due diligence and capital sourcing on over $250 million in acts as Lead Independent Trustee. He was a Director of Brookfield Residential Properties
dispositions. Brendan is a graduate of The Ohio State University with a Inc. (NYSE/TSX) from March 2011 and a Director of Brookfield Homes since 2007. On
BBA in Investments and Securities from the Max M. Fisher College of March 12, 2015 Brookfield Residential Propertiescompleted a “going private” transaction
Business and a Minor in Entrepreneurship. with Brookfield Asset Management as the purchaser. Mr. Young has been a Trustee, and
Chairman of the Board of Milestone Apartments REIT (TSX) since March of 2013. He also
serves asChairman of the Board of the American Friends of the Art Gallery of Ontario and
of Dignitas International U.S.A. Mr. Young holds a Bachelors degree from the University of
Western Ontario. He is also a member of Canada’s Sports Hall of Fame.
CHRIS LICATA joined QIP in 2017 as an Analyst, supporting the
underwriting, due diligence, structuring and management of commercial
real estate acquisition and asset management of investments made by
QIP. Chris is a graduate of Southern Methodist University with a Bachelor RANDY FLEISHER has been involved with commercial real estate since 1993 and is
of Business Administration in Real Estate Finance. presently the Managing Director of Jones Lang LaSalle (JLL) Dallas Debt & Equity platform.
Prior to joining JLL Randy was the founding Managing Parnter of Quandrant Realty Finance
(QRF), a boutique Real Estate Investment Banking firm located in Dallas, Texas which JLL
acquired on June, 19, 2013. Since its formation in 2010, QRF placed over $1.5B in debt
& equity financings. Prior to joining QRF he was a Managing Director at CBRE where he
was consistently recognized as a member of Colbert Coldwell Circle as one of the highest
producing employees. Prior to his employment with CBRE, Randy was an attorney with
the law firm of Monk Goodwin in Winnioeg Canada, practicing real estate and commercial
law. Randy holds a Bachelor of Law from the University of Manitoba, a Master of Science
in Real Estate & Finance from the University of North Texas and a Bachelor of Business
Administration in Finance, Investment and Banking from the University of Wisconsin.

HOWARD RACHOFSKY a Dallas native, earned a B.S. degree in economics in 1966 from
the University of Pennsylvania, Wharton School of Business and later his Juris Doctorate
degree in 1970 from the University of Texas at Austin. As a hedge fund manager for thirty
years, he started the Regal group of companies in the 1970s and acted as the Managing
Partner of Regal Securities Investment, L. P. and President and Chairman of the Board of
Regal Capital Company. Howard also serves as an active member for several boards, such
as Dia Center for the Arts in New York, the AT&T Performing Arts Center, the Dallas
Symphony Association, and Lumin Education. He is also a member of the Collections and
Finance Committees and on the Board of Trustees at the Dallas Museum of Art and acts as
Advisory Director to the University of Texas, School of Architecture.
3102 Oak Lawn Avenue, Suite 210 quadrantinvestmentproperties.com
Dallas, Texas 75219 214.855.2948