BROKER'S OPINION OF VALUE

www.ketent.com4295 San Felipe ● Suite 355 ● Houston, TX 77027

A 80 Unit ● Class C ● Multi-Family Asset

132 OYSTER CREEK DR., LAKE JACKSON, TX 77566

PEARL AT OYSTER CREEK 132 OYSTER CREEK DR., LAKE JACKSON, TX 77566

APARTMENTS FOR SALE

PRICE/UNIT: #VALUE!

PRICE/SF: #VALUE!

Units: 72 TERMS: ALL CASH

Avg Size: 958 PRO-FORMA CAP RATE: #VALUE!

Date Built: 1970Rentable Sq. Ft.: 69,000 High Valuation

Acreage: 3.83Occupancy: 88% Mid Range

Class: B-/C+Low Valuation

SALIENT FACTS:

♦ Available on an Assumption Basis Only ♦ Extensively updated over the past 5 years

♦ Located in the Lake Jackson submarket ♦ Aggressive new on-site management

♦ Had a "to the studs" rehab in 2014 ♦ Lake Jackson is home to many petroleum plants including

♦ Great drive-by on Oyster Creek Dow Chemical

#VALUE!

Market

#VALUE!

Market

For More Information Please Contact:

Tom Wilkinson

twilk4@ketent.com 713-355-4646 ext 102

4295 San Felipe, Suite 355 Houston, TX 77027

www.ketent.com

PEARL AT OYSTER CREEK 132 OYSTER CREEK DR., LAKE JACKSON, TX 77566

Asking Price Est Mkt Rent (Jun-18)

Price Per Unit Amortization (months) 12 Mo Avg

Price Per Sq. Ft. Debt Service

Stabilized NOI Interest Only

Stabilized Value Capped @ 7.% Interest Rate

Est Rehab/Upgrade @ $4,000/unit Date Due

Water Meter / Master Master Est. Entrepreneurial Profit Est Res for Repl/Unit/Yr

Est. Carry to Stabilization Yield Maintenance

Pitched Calculation of Value

PRO-FORMA INCOMECurrent Street Rent with a 5% Increase $95,078 / Mo

Estimated Gross Scheduled Income $95,078 / Mo

Estimated Loss to Lease (2% of Total Street Rent) 2%

Estimated Vacancy (11% of Total Street Rent)Estimated Concessions and Other Rental Losses (5% of Total Street Rent) 5%

Estimated Utilities IncomeEstimated Other Income $751 / Unit / Yr

Estimated Total Rental Income

ESTIMATED TOTAL PRO-FORMA INCOME $82,470 / Mo

12 Mo Avg Income Annualized

Fixed Expenses2017 Tax Rate & Future Assessment

Per owner, feels high! Estimated

$1,476 per Unit $1,927 per Unit

Gas

Total Utilities $2,029 per Unit $2,029 per Unit

Other ExpensesGeneral & Admin & MarketingRepairs & Maintenance includes deferred maint.

Labor Costs higher than normal

Contract ServicesManagement Fees 4.11% $447 per Unit 4.00% $550 per Unit

Total Other Expense $3,872 per Unit $2,892 per Unit

Total Operating Expense $7,377 per Unit $6,847 per Unit

Reserve for Replacement $300 per Unit $300 per Unit

Total Expense $7,677 per Unit $7,147 per Unit

Net Operating Income (Actual Underwriting)

Asking Price

Cap RateProposed DebtEquityEstimated Debt ServiceCash Flow

Cash on Cash

$39,586

21,600

253,794

#VALUE!

221,231

3,770,000

228,970

21,600

#VALUE!

$87,323

July 2018 YTD Expenses

$51,408$714 per Unit$51,408

$54,874 7/18 operating statement $1,213 per Unit

$714 per Unit

146,094

$ per Unit

Trash

Water & Sewer

$ per Unit

$762 per UnitTaxes

EXPENSE

$781,746

Fixed Expenses

Insurance

2.46138Tax Rate (2017)

Est Future Taxes

989,643

$3,547,710

$2,140,590

2018 Taxes

$529 per Unit

531,176

$182 per Unit

Other Expenses

$500 per Unit

$260 per Unit

$36,000

$ per Unit

$ per Unit$0

Estimated Other Expenses

MODIFIED ACTUALS

$100,800$1,746 per Unit

278,799

138,731

(22,819)

Operating Information

NOTES: ACTUALS: Income and Expenses calculated using owner's 7/18 operating statement. PRO FORMA: Income is Pro Forma as Noted. Taxes were calculated using 2017 Tax Rate & Future Assessment. Insurance is estimated. Management Fees calculated as 4.% of Gross Income, Other expenses are Estimated for the Pro Forma.

552,776

146,094

$0

88%

11%

$714

$221,231

360

$18,436

$300

4.20%

2018 Tax Assessment

$52,688

1,140,930

Est Ins per Unit per Yr

$90,550

$65,145

2/18/2023

Yes

Property Tax Information

Net Rentable Area

DISCLAIMER: The information contained herein has been obtained from sources that we deem reliable. We have no reason to doubt the accuracy of the information, but we have not verified it and make no guaranty, warranty or representation about it. It is your resonsibility to

independently confirm its accuracy and completeness. We have not determined whether the property complies with deed restrictions or any city licensing or ordinances including life safety compliance or if the property lies within a flood plain. THE PROSPECTIVE BUYER SHOULD

CAREFULLY VERIFY EACH ITEM OF INCOME OR EXPENSE AND PERFORM OR HAVE PERFORMED ANY INSPECTIONS TO VERIFY POSSIBLE CONTAMINATION BY ASBESTOS, LEAD PAINT, MOLD OR ANY OTHER HAZARDOUS SUBSTANCES. The owner reserves the

right to withdraw this listing or change the price at anytime without notice during the marketing period.

#VALUE!

$18,720

#VALUE!

$125,745

$32,151

$13,087

#VALUE!

$69,709

$38,107

3,770,000

221,231

$968 per Unit

MarketMarket

#VALUE!

493,017

475,025

7,738

$182 per Unit$13,087

$1,400 per Unit

514,617

208,192

INCOME

$30,000

Physical Occ (Aug-18)69,000

3.83Land Area (Acres) $475,025

1970

Master

Freddie Mac Small Loan Balance is not

Units per Acre

$0

$288,000

Elec Meter

Roof Style Est Future Tax Assessment

Date Built

Existing Loan Parameters

N/A

$6,786,072

A/C Type: *Current Value is Stabilized Value less Rehab, Profit and CarryHVAC-Indiv

$6,468,072

Physical Information

Number of Units

N/A

resizable per the Mortgage Broker

Mortgage Balance

18.799

Avg Unit Size

Financial Information

72

958

$3,770,000Market

54,080

(57,047)

$ / Unit / Yr

Estimated Fixed Expenses

Estimated Expenses

(125,502)

$87,323

PRO-FORMA

1,140,930

989,643

Estimated Utilities

$ per Unit $0 $ per Unit

Utilities

Total Fixed Expense

Utilities

Electricity/Water/Gas $2,029 per Unit$146,094

106,283

$146,094 $2,029 per Unit

8/24/2018 PearlatOysterCreek

PROPERTY OVERVIEW

PEARL AT OYSTER CREEK 132 OYSTER CREEK DR., LAKE JACKSON, TX 77566 Keymap:

Construction Quality: B

Age: 1970 Access Gates Park & Ride Nearby Mortgage Balance

Elec Meter: Master Cable Ready Walk-In Closets Amortization City of Lake Jackson $0.337500

A/C Type: HVAC-Indiv Club House School Bus Pick-up Interest Only Velasco Drainage District $0.085000

Water: Master Laundry Rooms Shuttle Route Type Brazoria County $0.380234

Wiring: Copper Mini Blinds Patios/Balconies Assumable Brazosport College $0.303249

Roof: Pitched Pool Monthly Escrow Port Freeport $0.040100

Paving: Concrete Bookshelves Origination Date Road and Bridge Fund $0.060000

Materials: Brick/Wood Outside Storage Due Date Brazosport ISD $1.255300

# of Stories: 2 Ceiling Fans Interest Rate

Parking: Open

Buildings: 12 Yield Maintenance 2017 Tax Rate/$100 $2.461383

Units/Acre: 18.80 Transfer Fee 2018 Tax Assessment

*In Select Units

Total 781,746$

Aug 2017 64,011$ 12 Mo Avg 65,145$ Sept 2017 67,278$ Oct 2017 71,285$ Nov 2017 67,173$ 9 Mo Avg 64,352$ Dec 2017 64,388$ Jan 2018 66,970$ Feb 2018 66,229$ 6 Mo Avg 63,440$ Mar 2018 59,466$ Apr 2018 60,025$ May 2018 68,500$ 3 Mo Avg 64,974$ June 2018 62,919$ July 2018 63,502$

Freddie Mac

Yes

1%+app+legal

Yes

Yes

1/21/2011

2/18/2023

4.20%

ACCT NO: 223944AMENITIES

$3,770,000

360

$18,436

PROPERTY INFORMATION TAXING AUTHORITY - BRAZORIA COUNTYEXISTING MORTGAGE

$2,140,590

PLEASE DO NOT VISIT THE SITE WITHOUT AN APPOINTMENT MADE THROUGH THE BROKER.

PROPERTY HIGHLIGHTS

COLLECTIONS

Not Resizable - Freddie Mac small loan

$52,000

$54,000

$56,000

$58,000

$60,000

$62,000

$64,000

$66,000

$68,000

$70,000

$72,000

$74,000

The Pearl at Oyster Creek Apartments is a two story, garden-style, apartment community located in the Lake Jackson submarket. The asset was built in 1970. Residents enjoy

ample amenities which include: mini-blinds, kitchen pantries, ceiling fans, laundry facilities, patios and balconies, walk-in closets, wood burning fireplaces.

Currently there are no reported leasing concessions. The prpoerty appears to have excellent driveby. On a recent tour, the street was packed.

All the units underwent a "to the studs" rehab in 2009 and 2014. There is a small vacant tract that reportedly was a 12 unit apartment building but it had a fire and the building was

scraped. The owner says that per the City of Lake Jackson, this could be rebuilt on the same footprint as was previously in place, but no other construction, such as a

miniwarehouse or retail is permissable. This site could be used for a fancy dog park or as a children's playground. The property charges $35/mo for covered parking.

The Brokers feel that the exterior paint and landscaping could be updated as well as the interiors. New on site management in place should increase in place collections.

Loan terms: WRT Freddie SBL, interest only until November with a 20 year term, 30 year amortization and 4.2% fixed rate for 7 years, with the last 13 yrs floating based on LIBOR

+ 2.75%

Per owner, there is a contract with Coinmach. However, half the property has washers/dryers in unit so, the laundry facility does not generate much revenue. Ideally, shrinking the

laundry room and making it usable as a party space would help. The owner also suggests adding a playground and perhaps a soccer field on the vacant lot.

Disclaimer: The information contained in this Memorandum reflects material from sources deemed to be reliable, including data such as operating statements, rent roll, etc. provided by the Owner. Notwithstanding, KET Enterprises Incorporated does not make any warranties about the information contained in this marketing package. Every prospective purchaser should verify the information and rely on his accountants or attorneys for legal and tax advice. This offer is “As-Is, Where-Is”. Answers to specific inquiries will have to be supplied by the Owner and are available upon request. Rates of return vary daily. No representations are made concerning environmental issues, if any.

PEARL AT OYSTER CREEK 132 OYSTER CREEK DR., LAKE JACKSON, TX 77566 Unit Mix

Floor Plan No. Units Sq Ft Total SqFt Market Rent Total Rent Rent/SF

2 Bed/1 Bath 28 875 24,500 $1,150 $32,200 $1.31

2 Bed/1 Bath 12 875 10,500 $1,300 $15,600 $1.49

2 Bed/1 Bath 12 875 10,500 $1,300 $15,600 $1.49

3 Bed/2 Bath 8 1,175 9,400 $1,350 $10,800 $1.15

3 Bed/2 Bath 11 1,175 12,925 $1,350 $14,850 $1.15

3 Bed/2 Bath 1 1,175 1,175 $1,500 $1,500 $1.28

72 958 69,000 $1,258 $90,550 $1.31

Source: Property

UNIT MIX AUG 2018

TOTALS AND AVERAGES Total Units

Average Sq. Ft.

Total Sq. Feet

Average Rent/Unit Total Rent Average Rent/ SF

Washer/Dryer

Washer/Dryer

Washer/Dryer

72%

28%

2 Bed/1 Bath 3 Bed/2 Bath

UNITS BY TYPE

PROPERTY LOCATION

PEARL AT OYSTER CREEK 132 OYSTER CREEK DR., LAKE JACKSON, TX 77566

DIRECTIO

PEARL AT OYSTER CREEK 132 OYSTER CREEK DR., LAKE JACKSON, TX 77566

RENT COMPARABLESPEARL AT OYSTER CREEK 132 OYSTER CREEK DR., LAKE JACKSON, TX 77566

1 Monaco Villas

460 W Highway 332

2 Palms of Lake Jackson

440-45 Highway 332

3 Villages of Lake Jackson

504 Highway 332

4 Gateway at Lake Jackson

111 Loganberry St

5 Oaks of Lake Jackson

127 Plantation Dr West

*Resident Pays E(Electric), W(Water), G(Gas) M = master meter M rents reduced by .15/mo

Totals/Averages Comps 1985 89% 164 945 $1,130 $1.195

Pearl at Oyster Creek M

132 Oyster Creek Dr

Sub-Market Averages(Lake Jackson) 86% 10,525 825 $879 $1.065

Houston Market Avgs 85% 656,042 882 $988 $1.125

RENT COMPARABLES (2018 ADS & Enriched Data) Sorted by Avg Rent/Unit

1.160

1975 95% 144 934 $1,276 EW 1.366

1999

$1.1621970 88% 72 958 $1,114 EWG

80% 160 1058 $1,227 EW

0.901

1999 95% 174 869 $1,196 EW 1.376

1972 95% 184 1074 $968 EWG

P/SF

1978 82% 160 792 $930 EWG 1.174

Property Name Yr Blt Occ #Units Avg SF Avg Rent EWG

3

2

1

4 5

SALES COMPARABLESPEARL AT OYSTER CREEK 132 OYSTER CREEK DR., LAKE JACKSON, TX 77566

1 Lake Vue

200 Brazoswood

2 Crescentwood

100 Lakeview

3 Shadow Park

420 Garland

4 Oyster Creek

105 Anyway

5 Treasure Bay

415 Garland Dr

Totals/Averages Comps $18,113,200 184,994 $79,163 $98.88 1978 231

Pearl at Oyster Creek M

132 Oyster Creek Dr

2/17 $16,590,000 157,464 $82,950 $105.36 1972 200

Pending $13,172,000 126,480 $74,000 $104.14 1980 178

217 $17,460,000 176,752 $86,866 $98.78 1976 201

Pending $26,280,000 277,984 $73,000 $94.54 1980 360

Pending $17,064,000 186,288 $79,000 $91.60 1983 216

SALES COMPARABLES (Sorted by Price/Sq. Ft.)

Property Name Date Sold Price Sq. Ft. Price/Unit Price/SF Units

Market 69,000 1970 72

Built

1

4

3 2

5

HOUSTON, TEXAS 2 0 1 8 B A C K O N T R A C K

REGION IN

PERSPECTIVE

The City of Houston, the largest city in Texas and the fourth largest city in the United States, is located on the coastal prairies of

southeast Texas and is home to a diverse array of industries and cultures. Houston is located in Harris County, the nation’s third

most populous county. The Houston region, officially designated as the Houston - Woodlands - Sugar Land Metropolitan Statistical

Area (MSA), comprises Harris County and eight other counties: Austin, Brazoria, Chambers, Fort Bend, Galveston, Liberty,

Montgomery, and Waller. The Houston MSA has a population of approximately 6,772,470 according to new U.S. Census Bureau

estimates as of July 1, 2016. The nine county metropolitan area is the fifth-largest metropolitan area in the nation and covers 9,444

square miles. The most urbanized portions of the Houston area are in Harris County, the southern part of Montgomery County, and

the eastern section of Fort Bend County. Houston is home to the tenth largest port in the world and is in close proximity to Mexico,

a key trading partner. It has a temperate climate and an affordable cost of living. Source: Greater Houston

Partnership - Dec 2017

of

third

Statistical

Liberty,

Bureau

444

and

Mexico,

Houston

With a population of 2,303,482, according to estimates by the U.S. Census Bureau as of July 1, 2016, the population base includes a

wide variety of racial and ethnic groups that give Houston a rich diversity and cosmopolitan feel. Among the nation’s

metropolitan areas, the Houston MSA ranked fourth in number of Hispanics (2,429,487), seventh in number of Blacks (1,122,767)

and seventh in number of Asians (497,099), according to the Census Bureau’s 2015 American Community Survey. Harris County

covers 1,778 square miles, enough space to fit New York City, Philadelphia, Boston, Chicago, Seattle, Austin and Dallas, with room

still to spare. At 655 square miles, the City of Houston is larger than six European countries, ranking just below Luxembourg and

above Malta.

The City of Houston lies in three counties: Harris, Fort Bend and Montgomery. Harris County contains the bulk of the City of Houston

with small portions of the city lying in Fort Bend and Montgomery counties. Houston is the county seat, or administrative center, of

Harris County. Harris County contains all or part of 34 incorporated cities. The Houston MSA includes 124 incorporated

communities.

Ever since its founding as a port city, Houston

has been a dynamic international

marketplace, attracting capital and people

from all over the world. Today, Houston is the

nation's fourth largest economy, and what

Forbes calls "America's next great global city."

Source: Greater Houston Partnership - Dec 2017

a

nation’s

)

County

room

and

Houston

of

incorporated GDP expected to more than double between '15 and '40

If the MSA were an independent nation its

economy would rank 24th largest in the world,

behind Taiwan ($523.0 billion), but ahead of

Sweden ($497.9 billion).

maintain trade and commercial offices in Houston

35 active foreign chambers of

Since the dramatic fall of oil prices that occurred

in late 2014, Houston’s economy slowed

significantly and grew at a lesser pace in 2015,

2016 and 2017 than its’ average annual rate. Even

though Houston’s economy saw accelerated

growth in 2017, it was well below Houston’s

potential. Future growth forecasts are promising

as local economists forecast about 45,000 jobs or

slightly more in 2018 and expect that number to

increase annually through 2021.

1000 Houston Firms Report

Foreign Ownership

5,000+ Houston Companies

are doing Business Abroad

90+ Nations have Consular

Representation in Houston

Houston has the 3rd Largest

Foreign Representation in the

Nation

182 nonstop destinations

Source: Greater Houston Partnership - Dec 2017

Houston’s

dumped

destroying

interruptions,

retail

then

consumer

replacement

Harvey, tax code changes may

spur apartment demand

occurred

slowed

,

Even

accelerated

Houston’s

promising

or

to

Houston’s strategic location and core strengths,

including an expanding healthcare sector, cutting-edge medical advancements, technological breakthroughs across industries and strong import/export trade activity (No. 1 US port in foreign tonnage), uniquely position it to play a vital role in meeting national and global market demands. Houston has and will continue to stand as a leader among U.S. metros and the world.

Houston has the largest export market in the U.S.

As the energy capital of the world, Houston was brought

along on a roller coaster ride. Despite the tumult that

occurred in energy, Houston still managed to produce job

growth primarily in industries dependent on population

growth (e.g., public education, health care, leisure and

hospitality). Job losses occurred primarily in sectors that

include Houston’s economic base (e.g., oil and gas,

manufacturing).

Port of Houston Ranks 1st in import tonnage for 26

straight years

Port of Houston is the largest Gulf Coast container port

Port of Houston ranks 2nd in total tonnage for 24 straight

years

The Texas Medical Center is the world's largest medical

complex with $3 billion in construction projects under

The Texas Medical Center has 50 million developed

square feet

Source: Greater Houston Partnership - Dec 2017

Houston Landlords are Bullish Source: Houston Chronicle 1/24/18

Houston’s economy was jolted in August 2017 when Hurricane Harvey slammed the Texas Gulf Coast and

dumped over 50 inches of rain over a three-day period. The event caused widespread flooding,

destroying homes, businesses and infrastructure. Further, the historical rainfall totals caused supply chain

interruptions, halted distribution logistics and shut down the Port of Houston, manufacturing plants and

retail stores for at least a week. Houston area retail spending rose the week leading up to the event and

then plummeted 58.7% the week after. The good news is that Houston’s resiliency lead to an uptick in

consumer spending within weeks after the event, mostly caused by area residents purchasing

replacement items damaged by the storm.

Harvey, tax code changes may

spur apartment demand

Houston apartment landlords are bullish going into the new year amid an

improving job market, lower supply pipeline and a post-Harvey

environment in which many Houstonians flooded out of their homes are

likely to remain renters.

"The numbers of people moving back to homes is going to be much less

than anticipated," multifamily analyst Bruce McClenny said Wednesday

morning at an annual meeting of the Houston Apartment Association.

McClenny estimates about 19,000 units were leased as a result of the

devastating August hurricane. Several thousand could stay in apartments.

A healthier job market in 2018 will bolster demand for rentals.

When the price of oil was $52 a barrel, Patrick Jankowski, senior vice

president of research for the Greater Houston Partnership, forecast 45,500

jobs would be created this year. It closed Wednesday at $65.61. "If oil

prices stay above $60 for two quarters, my forecast will be low," he said at

the Galleria-area industry event.

Camden Property Trust recently started construction on an apartment

tower downtown after it had been delayed during the energy downturn.

The company's CEO said Wednesday that changes in the federal tax code

will benefit renters.

2 0 1 8 E c o n o m i c F o r e c a s t mortgage

owning

that

year,

few

Bahrami

foreclosures

leverage,"

year

landlords

thousands

McClenny

Boriack

Houston was the nation's leader for apartment demand in the 4th quarter 2017 as a flurry of leasing activity

following Hurricane Harvey drove up the metro's overall numbers. The big surge in demand provided a shot in

the arm to an apartment market which had struggled over the past two years.

The number of occupied units in the Houston metro jumped by 13,755 in the final three months of 2017. Houston's

demand figure was nearly three times that of the nationl's #2 metro, Dallas, which absorbed 4,715 units in the

quarter.

Houston's elevated demand volumnes at the end of 2017 were bolstered by displaced residents turning to

apartments for alterntive housing. Coupled with the changes to the tax laws the incentive for home ownership in

the 25 to 40 year age group has lost the appeal it once had. Millinials are increasingly lured by apartment living

that gives them more economic and personal freedom, free from the upkeep of a home. Source:

realpage.com 2/7/18

"When you double the standard deduction and limit

mortgage deduction ... you have shifted the incentives for

owning a home versus renting," Ric Campo said. "Doubling

that creates more income for our residents."

Local apartment rents could grow as much as 2 percent this

year, said McClenny, president of ApartmentData.com.

Despite low oil prices and an oversupply of rental units the last

few years, the market fared reasonably well, said Cyrus

Bahrami of Alliance Residential. "We didn't have a lot of

foreclosures. We structured our deals better, with less

leverage," Bahrami said, referring to the industry as a whole.

The market hit bottom in 2016 and began to turn around last

year.

The hurricane damaged some 15,662 units and by year's end

landlords saw an annual average of $42 in rent growth as

thousands of flooded homeowners leased apartments,

McClenny said.

"We saw the concessions go away," said landlord John

Boriack. Source: Houston Chronicle 1/24/18

Demand Surge Puts Houston on Top in 4Q 2017

"When you double the

standard deduction and

limit mortgage deduction ...

you have shifted the

incentives for owning a

home versus renting," Ric

Campo said. "Doubling that

creates more income for

our residents."

IN SUMMARY

limit mortgage deduction ...

Campo said. "Doubling that

The storm passed, businesses reopened, employees returned to work, and recovery efforts were

underway. Houstonians started rebuilding their homes and replacing storm-damaged furniture and

clothing. Families living in hotels and households without kitchens ate at local restaurants and cafés.

Businesses took on contract workers to help with the cleanup. And wholesalers filled their warehouses

and added to their payrolls to better serve the growing retail and construction trade.

Q4/17 proved to be the best fourth quarter on record for overall job growth in Houston. The region

added 66,200 jobs the last three months of the year. 3 Construction, retail, restaurants, wholesale trade

and employment services set records for job growth in the quarter. Granted, some of the Q4 job growth

resulted from hiring that didn’t occur in September being rolled into October. But even if one

subtracts anticipated September growth (10,000 jobs) from Q4/17, the region

experienced its second best quarter on record. Source: Greater Houston Partnership March 2018

IN SUMMARY

The Perryman Group, a Texas-based economic and financial analysis firm, recently released its latest GDP,

population and employment forecasts. The group expects the Houston metro area’s GDP to grow at a

compound annual growth rate (CAGR) of 3.1 percent from ’15 to ’40 and reach $998.8 billion in ’40. The fastest

growing sectors during this period are projected to be in management of companies and enterprises (4.3 percent

CAGR), administrative and support and waste management (4.0 percent), and health care and social assistance

(3.9 percent). Houston will continue to account for approximately 30 percent of the state’s GDP throughout the

forecast period. The Perryman Group expects Texas’ GDP to grow at an annual rate of 3.2 percent from ’15 to ’40,

outpacing the U.S. rate of 2.7 percent. The firm sees Houston’s population growing at a CAGR of 1.6 percent from

’15 to ’40, reaching 9.9 million in ’40. Wage and salary employment is expected to increase 1.7 percent annually

to 4.7 million in ’40. The Houston metro area is forecasted to add 3.3 million residents and an additional 1.6 million

jobs during this period, accounting for 28.0 percent of Texas’ population growth and onefourth of the state’s

employment gains.

The Long-Term Outlook

Source: Greater Hoston Partnership - March 2018

PEARL AT OYSTER CREEK 132 OYSTER CREEK DR., LAKE JACKSON, TX 77566

HOUSTON (KTRK) March, 2013 -- Thousands of jobs are going to be available now that

Dow Chemical is expanding again. It's all due to natural gas derivatives, and the move

will bring jobs to the Freeport area.

Dow Chemical announced plans for its second and third major plant expansion in

Brazoria Tuesday. One will be an herbicide plant and the other two are production

facilities for natural gas components. That means a lot of jobs in a still-recovering

economy. For a small Texas town, this is an especially big deal. In the next five to

seven years, up to 5,000 construction jobs to build three new chemical plants. "It does

take my breath away. Three large investments all in 60 days, building some of the

planet's most valuable building blocks for products that 95 percent of everything you

touch every day needs these building blocks," Dow Chemical Chairman Andrew Liveris

said. From plastic bottles, to parts of the cars you drive and the phones you use to

communicate, the natural gas derivatives produced there will mean big money for

southeast Texas. It's made possible, in part, by a huge investment by the state of Texas

and what Gov. Rick Perry calls the right kind of environment to attract big business.

"They're not coming here just because we've got great music and beer and BBQ, they're

coming here because they know that they can keep more of what they work for and they

can in turn pour that back into this company," Perry said. But it's not just the business

climate that made this enormous expansion possible for Dow Chemical. It's also the

incredibly low cost of natural gas. Domestically produced, it's much cheaper than oil right

now and makes production of those chemical building blocks all the more desirable.

"The availability of low-cost fuel, low-cost natural gas, will help reindustrialize certain

sectors of the American economy," said Bob Tippee with the Oil & Gas Journal.

Eventually, the cost of natural gas will go up, but as long as it stays low, expect this

influx of business and jobs to be just the beginning. "You can't write the history of Dow

without a chapter or two on Texas and I'd like to think that the reverse is true as well,"

Liveris said.

On top of the thousands of construction jobs, once those three plants are complete, Dow

estimates they'll collectively employ 300 full-time workers.

(Copyright ©2013 KTRK-TV/DT. All Rights Reserved.)

.

DOW CHEMICAL EXPANSION

Dow’s Freeport site (prior to current expansion) has more than 4,200 employees. More than 88 percent live in Brazoria County. Southern Brazoria County is home to 79 percent. Lake Jackson

Lake Jackson/Freeport

Lake Jackson is located in south central Brazoria

County, Texas, within the Houston-Sugar Land-

Baytown Metropolitan Area.

It is bordered to the east by the cities of Clute and Richwood, and to the southwest

by the Brazos River. Texas State Highway 288, the Nolan Ryan Expressway, runs

through the city, leading 10 miles north to Angleton, the county seat, 52 miles north

to downtown Houston, and 9 miles southeast to Freeport on the Gulf of Mexico.

The Brazosport Center for the Arts and Sciences in Lake Jackson offers an art

gallery, two theaters, a museum of natural science, and a nature center and

planetarium, while the city maintains a number of parks, including Wilderness Park,

a large undeveloped area that extends to the bank of the Brazos.

The Dow Chemical Company and the Brazosport Independent School District are

the two major employers. Dow is considered to have given birth to the idea of Lake

Jackson in 1941 as a community for workers at its Freeport plant, and is referred to

by some as "Daddy Dow." Its population is said to have diversified beyond its

chemical roots and Lake Jackson is now home to other chemical and manufacturing

facilities along with many other types of businesses. In Lake Jackson's early days,

Dow helped to create a booming economy and it continues to do that today with its

expansion project that is estimated to bring nearly 2,000 employees to the area.

The unemployment rate in Lake Jackson, TX, is 4.8%. Future job growth over the

next ten years is predicted to be 36.40%. The income per capita is $32,965, which

includes all adults and children. The average household income is $80,013.

Source: Wikipedia, Jun e 17, 2014

PEARL AT OYSTER CREEK 132 OYSTER CREEK DR., LAKE JACKSON, TX 77566

Dow’s Freeport site (prior to current expansion) has more than 4,200 employees. More than 88 percent live in Brazoria County. Southern Brazoria County is home to 79 percent. Lake Jackson

is where most employees live (41 percent). .

The Dow Chemical Company is building a new research and development center in Lake Jackson, near its

massive chemical complex in Freeport. The new Texas Innovation Center will replace the Michigan-based

chemical giant’s current R&D facility in Freeport. When complete, which is expected in 2016, the center will have

lab and office space for more than 2,000 employees. Square footage of the space was not immediately available. “The enhanced capabilities

at our new location will continue the tradition of R&D expertise in Texas by delivering leading-edge technology,” Andrew Liveris, Dow’s chairman and CEO, said in a

statement. Dow added that the center is designed to lead to advances in the innovation and commercialization of chemical solutions that impact the food packaging,

personal care and automotive industries. Houston-based Core Real Estate LLC is developing the center, and Houston-based Kirksey Architecture is designing it.

Dow did not immediately respond to inquires about the R&D center. Dow is investing in much more than a new innovation center in Houston, though. The company,

which employs more than 6,000 people in the Houston area, is also pursuing a more than $4 billion petrochemical expansion throughout the Gulf Coast. Many of the

projects in this expansion are adding capacity to the company’s operations in Freeport.

Currently, Dow’s Texas plants produce 44 percent of the company’s products sold in the U.S. However, with the current expansions underway, this number could

increase. “In the next five years our (Freeport) site will see remarkable growth in manufacturing and the Texas Innovation Center will bolster our R&D operations on a

long-term path forward as well,” Earl Shipp, Dow’s vice president of U.S. Gulf Coast operations, said in a statement. Outside of the expansions, Dow is in the process

of restructuring its chlorine busines, which could impact the company’s Freeport site.

Source: Houston Business Journal, March 11, 2014

Rendering of the new Dow Chemical Co. Research and Development Center in Lake Jackson

Lake Jackson/Freeport

DOW CHEMICAL EXPANSION

PEARL AT OYSTER CREEK 132 OYSTER CREEK DR., LAKE JACKSON, TX 77566

DEMOGRAPHICS

1 Mile Radius

3 Mile Radius 5 Mile Radius

2017 Estimated Population 7,141 22,622 35,9422022 Projected Population 7,981 25,256 40,2542010 Census Population 7,314 22,113 35,0342000 Census Population 7,679 22,427 33,185

Projected Annual Growth 2017 to 2022 2.4% 2.3% 2.4%Historical Annual Growth 2000 to 2017 -0.4% 0.1% 0.5%

2017 Median Age 35.3 36.5 35.3

2017 Estimated Households 2,895 8,837 14,1222022 Projected Households 3,194 9,744 15,6132010 Census Households 2,866 8,370 13,3482000 Census Households 2,762 8,022 12,064

Projected Annual Growth 2017 to 2022 2.1% 2.1% 2.1%Historical Annual Growth 2000 to 2017 0.3% 0.6% 1.0%

2017 Estimated White 76.6% 75.0% 74.1%2017 Estimated Black or African American 10.2% 10.9% 11.3%2017 Estimated Asian or Pacific Islander 5.1% 5.8% 4.9%2017 Estimated American Indian or Native Alaskan 0.6% 0.5% 0.5%2017 Estimated Other Races 7.4% 7.8% 9.1%

2017 Estimated Hispanic 24.0% 22.7% 26.4%

2017 Estimated Average Household Income $105,303 $110,939 $106,2162017 Estimated Median Household Income $74,582 $78,659 $74,3112017 Estimated Per Capita Income $42,707 $43,348 $41,752

2017 Estimated Elementary (Grade Level 0 to 8) 3.4% 3.7% 4.1%2017 Estimated Some High School (Grade Level 9 to 11) 4.6% 4.1% 5.0%2017 Estimated High School Graduate 18.6% 21.6% 24.7%2017 Estimated Some College 32.3% 30.6% 29.5%2017 Estimated Associates Degree Only 11.1% 10.6% 10.3%2017 Estimated Bachelors Degree Only 20.9% 19.9% 18.0%2017 Estimated Graduate Degree 9.1% 9.4% 8.4%

2017 Estimated Total Businesses 700 973 1,3252017 Estimated Total Employees 7,134 10,595 14,0652017 Estimated Employee Population per Business 10.2 10.9 10.62017 Estimated Residential Population per Business 10.2 23.3 27.1

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24.0% Non-Hispanic

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PEARL AT OYSTER CREEK 132 OYSTER CREEK DR., LAKE JACKSON, TX 77566

PEARL AT OYSTER CREEK 132 OYSTER CREEK DR., LAKE JACKSON, TX 77566

PEARL AT OYSTER CREEK 132 OYSTER CREEK DR., LAKE JACKSON, TX 77566

PEARL AT OYSTER CREEK 132 OYSTER CREEK DR., LAKE JACKSON, TX 77566

A 268 UNIT CLASS "B-/C+" GARDEN APARTMENT COMMUNITY

N/A