Geyer Commons Development Geyser Boutique Hotel Phase II Limited Partnership

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Eugene Thomas
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1 927 Webster Ave. - The Historic Geyser Ice Plant Waco, Texas Geyer Commons Development Geyser Boutique Hotel Phase II Limited Partnership Diamante Development, LLC Bosque Blvd., Ste. 675 Waco, Texas 76710

2 Investment Overview Project Name: Geyser Commons Geyser Boutique Hotel Address: Description: 927 Webster Ave., Waco, TX. This master development, anchored by the historic Geyser Boutique Hotel, is proposed for the Silo District of Downtown Waco, Tx., 2 blocks away from the Fixer Upper/Magnolia Silos. This location is perfect for shopping, warehouse & office space, restaurants, general retail or residential development. In addition to featuring the Magnolia Market, the Silo District also features The Findery home boutique, The Backyard live music venue, Hotel Indigo and Balcones Distillery, and is only a short drive from Baylor University and McLane Stadium. Access to Interstate-35 is less than five minutes away. This location is a great jumping off point to explore everything else Downtown Waco has to offer. With a free trolley, Geyser Commons could be another muststop along the Silo District tour. Geyser Commons would encompass almost 30 acres over 8-9 city blocks. Development Concept: Current Owner: Geyser Commons will be an anchor destination in downtown Waco, Tx. Complimented by nearby shopping, residential, entertainment and office venues, Geyser Commons will be anchored by the Historic Geyser Boutique Hotel. This unique hotel will feature a 57- rooms, a bar/lounge location and an upscale restaurant. We believe that with the right operators and development partners in place, Geyser Commons and the Geyser Hotel will find immediate success Diamante' Development, LLC. and other area property owners Investment Objective: Geyser Commons Development, GP. aims to purchase 1,324,980 square feet of commercial property in downtown Waco, Tx. for redevelopment. Purchase price for said property will average $9.23/s.f.. The Geyser Phase II Limited Partnership will purchase 25% of the Geyser Commons Development GP. for a purchase price of $3,133,826.13, with anticipate sale at $15.62/s.f.

3 Financial Summary: Geyser Commons Development, G.P. Objective: Purchase 1,324,980 s.f. of commercial property in downtown Waco, Tx. for commercial development. Basics Geyser Commons Capital Stack GP Volume $12,535,305 Diamante' Development, LLC. 28% $3,509, Geyser Commons GP Term 36-Month SALP 25% $3,133, GP Min $3,000,000 Managing GP 1% $125, Open 1/1/2018 CSTRE-PE Fund 46% $5,766, Close 12/31/2020 $12,535, Land Purchase Square Footage Purchase Price/s.f. $9.23 $12,229, Appraised Value on Comps $15.62 $20,696, Proposed Gain on Sale $8,466, Investors Risk Simple ROI 69.23% Early PREF 0% Open PREF N/A IRR 20.23% Front Fee Comm 0.00% MGT 2.5% Annual Fee Comm 0.00% MGT 0% Targets Q $3,635,238 Q $3,133,826 Q $5,766,240 Total Raise $12,535,305

4 Geyser Commons Development SALP (Single Asset Limited Partnership) Objective: 25% Participation in Geyser Commons Development, GP. Basics SALP Volume $3,133,826 SALP Term 36-Month SALP Min $1,000,000 Open 1/1/2018 Close 12/31/2020 Investment Risk Simple ROI 68.00% Early PREF 6% Open PREF N/A IRR 17.16% Front Fee Comm 0.00% MGT 2.5% Annual Fee Comm MGT Targets Sep-17 $313,383 Oct-17 $1,253,530 Nov-17 $1,253,530 Dec-17 $313,383 $3,133,826

5 SALP Investment PREF Proceeds Fees Net Proceeds IRR (3,133,826) 564,089 5,250,482 (78,346) 0 2,602,399 Before Tax IRR 2017 (3,133,826) , , , ,250, IRR 17.16% Before Tax IRR 17.16%

Development Magnets: Magnolia Silos 2 blocks away The Findery 1 block away The Backyard 1 block away Balcones Distillery 2 blocks away Chamber of Commerce renewed focus on downtown development

8 Development Magnets: Magnolia Silos 2 blocks away The Findery 1 block away The Backyard 1 block away Balcones Distillery 2 blocks away Chamber of Commerce renewed focus on downtown development Located in the Waco TIF Zone Approximately 11,800 employees currently working downtown for 810 employers Located only.3 miles from Baylor University Located only.4 miles from the Brazos River Located in Silo bus route. City of Waco and Greater Waco Chamber of Commerce support Located in Historic Building Located only.75 miles from the new Baylor Stadium Recent Downtown Development: New $300 Million Baylor Stadium Magnolia Silos Altura Luxury Lofts Historic Waco High Lofts- 104 units in three buildings $9 million

9 Development Information Geyser Ice Plant History Heritage Quarters-368 bed student housing 100% occupied leased for average $1.70/ft Waco Town Square- $60 million, 17-acre, mixed-use development between S. Third and S. Fourth Streets. 70 residential units 100% occupied leased for average $1.50/ft Hilton Hotel- $16 million renovation Waco Convention Center- $17.5 million renovation Historic Roosevelt Hotel- $15 million renovation into Class A office Space. 94% occupied Well Fargo Bank-$3.5 million new bank Greater Waco Chamber of Commerce- $4 million new building Franklin Place-$9 million mixed use development Indigo Hotel-Upscale 120 room Hotel Austin Ave Lofts- $1.5 Million Renovation of former Wells Fargo Building Construction of new Boutique Grocery Store on University Parks Dr Ninfa s Banquet Hall on Mary and 2 nd Staybridge Suites-90 room Hotel The Historic Geyser Ice Plant offers one of the most unique investment opportunities for the serious equity investor in our region today. Waco, Tx. is in the midst of what many call a 100 year boom. With the advent of the Magnolia Silos, Baylor s state-of-the-art McLane Stadium, and new shopping, entertainment and hospitality developments popping up throughout the city, Waco is transitioning beyond its former reputation as a pass-through city along I-35, and is becoming a true destination for many discerning Texas travelers. The original Geyser Ice Plant was built at 927 Webster Ave., in Waco, in It quickly became a central destination in the city, as it provided ice to Waco, and the surrounding area. The property changed hands many times and endured several renovations, and was ultimately owned and operated by the Reddy Ice Corp., as late as Not long after that, however, the building was vacated by Reddy Ice and was soon after, abandoned altogether. In June of 2017, the original property and the existing buildings were purchased by Diamante Development, LLC., a Waco, Tx. commercial property developer. The new owners plan to demolish some of the out-lying buildings on the property, followed by a complete renovation of the historic buildings and conversion into a destination boutique hotel and entertainment venue in downtown Waco.

10 The Waco Boom! Following the national recession in 2008, Waco, Tx., has experienced incredible growth and development over the past several years. All indications are that the momentum to develop new destinations in downtown Waco is growing. In 2014, Baylor University introduced McLane Stadium, home to the Baylor Bears NCAA football program. McLane Stadium is widely recognized as a state of the art facility, and hosts over 50 sporting and entertainment events throughout the year. In 2015, stars of the A&E reality television series Fixer Upper, Chip & Joanne Gains, opened the Magnolia Market at the Silos in downtown Waco. The success of this retail shopping outlet has been nothing short of remarkable. Literally hundreds of thousands of people per year travel to downtown Waco to visit the silos and the Magnolia Bakery, also owned by the Gaines. The success of the silos signaled a new growth boom in what s being called the Silo District in downtown Waco. Other businesses who have capitalized on this growth are The Findery, The Backyard, Hotel Indigo and Balcones Distillery, all of which have come to life which have opened their doors in recent years. The Geyser Ice Plant is located at 927 Webster Ave., right in the heart of this explosive growth district. Our property is only 2-blocks for the Magnolia Silos and Balcones, and only 1-block from The Findery and The Backyard. According to a study by Rice University in 2016, the Waco, Tx. area is expected to grow by as much as 40% within the next years. Additionally, the local economy is expected to swell from $14,000,000,000 to as much as 30,000,000,000 in coming years. Boutique Hotel The Geyser Hotel concept will feature 57 immaculately designed and decorated rooms & suites. 27 of these rooms will be located in the historic Geyser Ice cooling tower, which will be converted into a 3-story main hotel building. The remaining rooms will employ a storage container housing concept. The storage container housing and hospitality concept is one of the fastest growing commercial development trends in our country today. Urban centers where the storage container housing, hospitality and retail concept is widely used are Dallas, Phoenix, San Antonio, San Diego, Atlanta, New York, Chicago, Seattle & Denver, just to name a few. The Geyser developers are meticulously scrutinizing potential hotel operators who not only demonstrate a track record of success in the hospitality industry, but also see the vision of the developers and our ownership group.

11 Across the United States, the boutique hotel concept is quickly gaining momentum. With the advent of the AirBNB & Boutique Hotel concept, travelers across the country are choosing to be more selective about their travel accommodations. These industries are seeing explosive growth, especially in urban areas where revitalization is a key component of the development. The following is an excerpt from an article by Rina Raphael, published June 16, 2017, in Fast Company magazine, which speak directly to this growth opportunity. On a corner in downtown El Paso, a sleek steel structure stands out on an avenue of warehouse complexes. The newly refurbished 50-year-old building rises above the dramatic red mountain skyline and a busy highway intersection that leads to Juarez, Mexico. It s home to the Hotel Indigo, a new boutique inn whose industrial chic decor captures the region s past and future: Cement floors and walls contrast with Southwestern-flavored cacti, adobe vases, and tapestries. The hotel opened last year as part of a larger experiment. If you plant a cool place in a deserted downtown, will the area bloom? The answer appears to be yes. The Indigo has helped usher in a new era for the strip, which was once a vibrant commercial hub. In the last two years, the neighborhood has become flush with art galleries, restaurants, cocktail bars, and a new baseball stadium. Three other hotels (including a Starwood) are moving in, and there are plans to build a trolley to shuttle visitors to and from the University of Texas, El Paso. Miguel Diaz, the Indigo s general manger, was confident the hotel would contribute to the area s revitalization. There was enough data out there for us to say, This is going to be a domino effect, it s gonna multiply,' he says. It s not a goal anymore. It s happening. The pattern is becoming familiar across the country, as hotel operators hedge their bets on up-andcoming, midsize cities. Some are already cultural hubs, others are moving in that direction. Hospitality companies are setting their sights on downtowns across the country, continuing a revival of the local city square that s been ongoing for years. From Detroit and Milwaukee to Asbury Park and Pittsburg, investors are scrutinizing the cities profiles, looking for economic growth, young demographics, and a sustainable arts culture. They re searching for what appeals to the millennial market the next Portland, a once ignored place that, with the right new businesses, can become an edgy-cool destination. Over the past few years in Savannah, Georgia, alone, nearly a dozen new hotels have set up shop. Interest in smaller markets is paying off, according to Yan Freitag, SVP of the travel industry consulting firm STR. The growth rates are pretty staggering, but that s because it [started] at zero. Compared to so-called first-tier cities, land in these areas is relatively cheap, so boutique owners can purchase and refurbish old buildings that have character and history and are cherished by the local community. In many instances, these buildings cannot sustain big hotel chains, which require a certain footprint or amenities like elevators. Booking.com reports a substantial increase in boutique stays in smaller American cities over the last year. In terms of hotel room booking popularity rankings, Milwaukee jumped from 111 to 101, Cleveland from 120 to 86, and Cincinnati from 221 to 210. While these might not sound like monumental increases, they show promising growth for cities outside of America s top 20. Savannah, Pensacola, Memphis, Charleston, and Little Rock also experienced more than a 10% increase in tourism compared to the previous five years.

In these areas, you ll find boutique hotels which have seen a 5% annual growth in the last five years as well as established chains masquerading as small through their soft brands, such as Marriott s

12 In these areas, you ll find boutique hotels which have seen a 5% annual growth in the last five years as well as established chains masquerading as small through their soft brands, such as Marriott s Autograph Collection, Choice s Ascend Collection, or Hilton s Tapestry. Autograph is in the middle of revamping a 109- year-old athletic club into a 167-room hotel in Pittsburgh. El Paso s Hotel Indigo is part of the InterContinental Hotels Group, parent company to the Holiday Inn and Crowne Plaza. Everyone wants in on the trend. Boutique and big brands take various routes to capitalize on these less-flashy areas. Some come to court consumers who prefer midsize cities, while others want to be part of the ongoing revitalization and get travelers excited about the areas. Some are trying to encourage an arts culture, while others strive to highlight the city s traditions and history. Regardless of the path, one thing is clear: There s big money in small(er) America. Without question, cities like Waco, Tx., are in the midst of an opportunity. The Geyser Ice Plant development opportunity is perfectly positioned to seize upon this opportunity.

Investment Prospectus

Viewpoint Equity Partners The Historic Geyser Ice Plant Waco, Texas Investment Prospectus Investment Overview Viewpoint Equity Partners Project Name: Project Address: Description: Geyser Ice Plant Development