FOR SALE ENTIRE APARTMENT COMMUNITY …...venues, and a Univeristy of Texas campus with over 19,000 students just outside of the gates. Featuring 98 fourplexes, Union Square Apartments

90% SOLD. RESERVE YOUR FOURPLEX TODAY!

98 FOURPLEX MULTI-FAMILY COMMUNITYINDIVIDUAL AND BULK PACKAGES OF FOURPLEXES FOR SALE

EDINBURG, TEXAS

UNION SQUARE APARTMENTS, LLC

Sales and Project Information:

Ryan HarrisPrincipal, Managing MemberUnion Square Apartments, [email protected](310) 560-9111

Business Office:4900 W. Expressway 83 Suite 239, McAllen, TX 78501

Sales and Project Information:

Janet ClementPrincipal, Managing MemberUnion Square Apartments, [email protected](310) 347-7025

98 FOURPLEX GATED COMMUNITY LOCATED IN APRIME LOCATION IN SOUTH TEXAS – CITY OF EDINBURG

mailto:[email protected]

mailto:[email protected]

❑ YOU MUST GET YOUR OWN CONSTRUCTION LOAN FOR OUR PRECONSTRUCTION PRICING.

❑ LIMITED SPEC INVENTORY AVAILABLE.

❑ SEPTEMBER 2020 BEGIN FOURPLEX CONSTRUCTION

❑ 400 UNITS IN COMMUNITY

❑ 33 ACRES DEVELOPED (37 GROSS ACRES)

❑ $5K RESERVATION FEE PER FOURPLEX UNTIL CLOSE (AUGUST 2020)

❑ EACH FOURPLEX IS A SEPARATE PROPERTY BUT CAN BE TIED TOGETHER FOR FINANCING AND PROPERTY TAX PURPOSES*

❑ 2:1 COVERED PARKING RATIO

❑ COMMUNITY PARK

❑ GATED COMMUNITY

❑ SOCIAL DISTANCING FRIENDLY DESIGN

Our design lends itself to maximizing each residences personal space as we do not have double-loaded corridors or hallways, elevators, or shared parking garages. Each yard is fenced for privacy. * Seek your own tax professional. Check with your lender.

Sugar R

d.

Russel Rd. / 17 ½ Mile Rd.

UNION SQUARE APARTMENTS, LLC proudly presents Edinburg, Texas newest multi-familyapartment community. Union Square Apartments spans over 33 developed acres, just a shortdistance from the downtown business district and the Univeristy of Texas RGV campus. Thesurrounding neighborhood is near quality public schools, coffee shops, supermarkets, winebars, fine dining, yoga classes, day care, parks and recreation, stadiums and entertainmentvenues, and a Univeristy of Texas campus with over 19,000 students just outside of the gates.

Featuring 98 fourplexes, Union Square Apartments will be Edinburg’s Premier gated apartmentcommunity built to custom home standards with real stone, real brick, and high-end finishes.Nothing is prefabricated and there is no stucco or foam used in their construction. Stainlesssteel refrigerators, washer and dryers, and window coverings are included in the package.They come with a one-year builder warranty and a 10-year structural warranty.

McAllen – Edinburg – Mission Metropolitan Statistical Area (MSA) is one of the fastest growingin the nation. It has a population over 1M now and is projected to grow to 1.8M by 2050. Thisis one of the most compelling markets in all of Texas and enjoys high occupancy rates.

Builder is offering fourplex and lot packages and fully completed spec fourplexes. The first unitswill be complete in early 2021. The community is 90% complete with the final completion justafew weeks away. In September 2020 the first round of building permits will be issued andconstruction on the fourplexes begins!

The City of Edinburg saw an increase in its population of over 8,400 in 2018 with only 600 new apartments added in 2019.

THE TEAMFoued Abboud, Guillermo Abboud, Ryan Harris, and Janet Clement are owners and managingmembers of Union Square Apartments, LLC www.UnionSquareSales.com. They havedecades of multifamily development experience. Harris and Clement are also owners /developers of a 404-unit condo development in Florida that is the largest and most successfulof its kind in its marketplace. www.UniversityGreen.com

Ryan Harris

Janet ClementFoued Abboud

Guillermo Abboud

http://www.universitygreen.com/

YELLOW = XL LOTSGREEN = MODEL ABLUE = MODEL A SIXPLEX

ELEMENTARY SCHOOL HIGH SCHOOL

IDEA EDINBURG (CHARTER SCHOOL)

DOWNTOWN EDINBURG

MIDDLE SCHOOL

690 MAJOR FREEWAY

UNIVERSITY OF TEXAS RGV

UNIVERSITY OF TEXAS RGV

The same principals and the same subcontractors that build 70 fourplexes in the 2018 and 2019 in these two Edinburg fourplex communities will build fourplexes at Union Square Apartments as Union Square Apartments, LLC.

THIS IS A SAMPLE OF TWO RECENTLY COMPLETED FOURPLEX COMMUNITY FOR REFERENCE.

Click Button to see 1 Min Video of a recently completed fourplex community in Edinburg. You can also see another completed fourplex community in some of the shots. Our principals built over 70 fourplexes in these two communities.

https://vimeo.com/360925155

TURN-KEY PROPERTY MANAGEMENT OPTION

Buyers may manage the property themselves or use a firm of their choosing. If you are new to this marketplace, you are invited to consider Magnolia Rentals, Inc. Magnolia is managing 900+ doors and is available to perform complete property management of Union Square. They have an excellent track record of fast lease-up and high occupancy with Ultimate Fourplexes. They are currently managing as large number Ultimate Fourplexes for a rate of 5% of collected rents + a $400 per unit lease-up fee. The lease up fee is only charged no more than once every 12 months and only if a unit needs to a re-leased. There is no fee if the tenant renews.

• Full-Service Property Management

• Magnolia Rentals is a full-service property management company servicing the McAllen –Edinburg, Mission MSA. Magnolia Rentals specializes in management of commercial, multi-family, single family, large and small apartment complexes, condominiums as well as townhomes.

• They handle all aspects of property management including, leasing, marketing, background checks, employment verification, eviction services, CAM reconciliation and billing, make ready service, accounting services, and property maintenance.

• Magnolia Rentals also uses the latest technology to allow tenants to pay rents electronically and provide 24-hour emergency response.

• They have a robust Owner Portal in which owners can view reports, financials, account balances, and other information.

You can find more information about Magnolia Rentals here: http://www.magnoliarentalsinc.com/

The above rates are only for clients of Union Square Apartments, LLC. They are not public rates. To receive these special rates you must come in through the proper channels. While we make nothing from property management it is essential to most of our clients including out-of-state clients. It is provided here as a courtesy. You can use any property management firm you want or manage your property yourself. Be aware that property management fees can change, and we have no control over that. Buyers to do their own due diligence on Magnolia Rentals, Inc. We are happy to arrange for a call with the owner of Magnolia upon request to make the introduction so you can get your questions answered.

http://www.magnoliarentalsinc.com/

MODEL XL MODEL XL

PRECONSTRUCTION SPEC - READY PRODUCT

SQ FT 4,294 4,294

PRICE CHARGED BY BUILDER FOR LOT AND BUILD 345,000$ 370,000$

ESTIMATED CONSTRUCTION LOAN COSTS (WILL VARY) 12,000$ -$

TOTAL COST 357,000$ 370,000$

MONTHLY GROSS RENT 3,800$ 3,800$

ANNUAL GROSS RENT (ESTIMATE - MAY VARY) 45,600$ 45,600$

VACANCY PROVISION 4% (1,824)$ (1,824)$

ANNUAL EFFECTIVE INCOME 43,776$ 43,776$

Est. HOA Dues (500)$ (500)$

Est. Homeowner's Insurance (984)$ (984)$

Est. Property Taxes (Based on actual Model A rates in Edinburg for 2020.) (8,000)$ (8,000)$ Water/Electricity/Trash - Common Area (Tenants pay own Water & Power) (1,035)$ (1,035)$

Landscaping (gravel side and rear yards) (800)$ (800)$

Maintenance/Pest Control (350)$ (350)$

Total Expenses (11,669)$ (11,669)$

ANNUAL NET INCOME 32,107$ 32,107$

CAP RATE WITH CONSTRUCTION LOAN FEES INCLUDED 9.0% 8.7%

Down Payment 20.0% 25.0%

Percent Financed 80.0% 75.0%

Amount Financed 276,000$ 277,500$

Annual Mortgage Payment 30 Year Fixed 4% Rate (15,961)$ (16,048)$

CASH FLOW 16,146$ 16,059$

DOWN PAYMENT 69,000$ 92,500$

CONSTRUCTION LOAN COSTS (WILL VARY) 12,000$ -$

PERMANENT LOAN COSTS @ 2% 5,520$ 5,550$

TOTAL CASH UP TO CLOSE ON PERMANENT LOAN 86,520$ 98,050$

CASH ON CASH RETURN 18.7% 16.4%

UNION SQUARE APARTMENTS - WITHOUT PROPERTY MANAGEMENT

DISCLAIMER AND NOTICE

1 All purchasers and prospective purchasers need do their own due diligence and cast their own projections and reply on their own work. These spreadsheets are intended to be the basis for discussions and by no means is any return or outcome promised by virtue of being in this spreasheet.

2 This spreadsheet is a product of Union Square Apartments, LLC and not any individual. It may contain errors and incorrect assumptions. There are no warranties as it its accuracy.

3 Prices subject to change without notice. No offer is created and no property is being offered in this spreadsheet. It is for discussion purposes only.

4 Rents are estimates only. They may be lower or higher than shown. There is no assurance that you will be able to raise rents in the future. All prospective purchasers should use their own income and expense figures and not reply on these to make their decision.

5 Buyers are respoinsible for doing all their own leasing and setting their own rates etc. This spreadsheet shows a third party property management company's involvement and expenses. Use of a property management company is purely optional. Actual prop management fees must be negotiated with the third party provider.

6 This spreadsheet is intended for Accredited Savvy Investors only. By reviewing this spreadsheet you agree to hold Union Square Apartments, LLC harmless for any liability that may arise due to an error or ommission contained herein. No guaranties are made, directly or indirectly about any income, cash-flow, cap rate, or return.

7 Lease up carry may be longer than shown and could add to the costs. All buyers need to be comfortable with their own assuptions.

8 No income taxes are considered in this analysis. Buyers to discuss the possibility for Accellerated Depretiation with their tax professionals.

9 The referenced 3BR/2BA may be and will be permitted as 2BR+Den / 2 BA so that the parking requirement is 2 spaces per dwelling and not 3 spaces per dwelling.

10 Square Footage for each model type may vary slightly from the amounts listed.

MODEL XL MODEL XL

PRECONSTRUCTION SPEC - READY PRODUCT

SQ FT 4,294 4,294

PRICE CHARGED BY BUILDER FOR LOT AND BUILD 345,000$ 370,000$

ESTIMATED CONSTRUCTION LOAN COSTS (WILL VARY) 12,000$ -$

TOTAL COST 357,000$ 370,000$

MONTHLY GROSS RENT 3,800$ 3,800$

ANNUAL GROSS RENT (ESTIMATE - MAY VARY) 45,600$ 45,600$

VACANCY PROVISION 4% (1,824)$ (1,824)$

ANNUAL EFFECTIVE INCOME 43,776$ 43,776$

Property Management Fee at 5% of collected rents (2,189)$ (2,189)$

Lease Up Fees at $400/Each new lease and 2 Required per year once stabilized. (800)$ (800)$

Est. HOA Dues (500)$ (500)$

Est. Homeowner's Insurance (984)$ (984)$

Est. Property Taxes (Based on actual Model A rates in Edinburg for 2020.) (8,000)$ (8,000)$ Water/Electricity/Trash - Common Area (Tenants pay own Water & Power) (1,035)$ (1,035)$

Landscaping (gravel side and rear yards) (800)$ (800)$

Maintenance/Pest Control (350)$ (350)$

Total Expenses (14,658)$ (14,658)$

ANNUAL NET INCOME 29,118$ 29,118$

CAP RATE WITH CONSTRUCTION LOAN FEES INCLUDED 8.2% 7.9%

Down Payment 20.0% 25.0%

Percent Financed 80.0% 75.0%

Amount Financed 276,000$ 277,500$

Annual Mortgage Payment 30 Year Fixed 4% Rate (15,961)$ (16,048)$

CASH FLOW 13,157$ 13,070$

DOWN PAYMENT 69,000$ 92,500$

CONSTRUCTION LOAN COSTS (WILL VARY) 12,000$ -$

PERMANENT LOAN COSTS @ 2% 5,520$ 5,550$

TOTAL CASH UP TO CLOSE ON PERMANENT LOAN 86,520$ 98,050$

CASH ON CASH RETURN 15.2% 13.3%

UNION SQUARE APARTMENTS - WITH HYPOTHETICAL PROPERTY MANAGEMENT FEES SHOWN























MODEL XL

3BR/2BA

3BR/2BA

3BR/2BA

3BR/2BA

The Model XL is a proven design and is popular witharea renters. The Principals of Union SquareApartments, LLC have built many of these all 3BRUnits (legally they are 2BR + Den and not 3BR Unitsto get around the parking requirement for 3BR units)in McAllen, Edinburg, Mission MSA. They rent upfast. Price includes appliances and windowcoverings. Rent ready.

COMPLETED FOURPLEX OPTION (No constructionloan needed) by request. $370,000.

Square Footage: 4,292 Square FeetUnit Mix: 4- 3BR/2BA (Legal 2BR+DEN) – 1,074 SF eachParking: 8 Spaces of Covered ParkingEstimated Rent: $3,800/Mo $45,600/YearPrice w/Lot: $345,000 PRECONSTRUCTIONSpec Price: $370,000 COMPLETED

MODEL XL

MODEL XL

MODEL XL

MODEL XL

MODEL XL

DEVELOPMENT TIMELINE

GroundbreakingNovember 2019

Site Work February 2020

Vertical Construction BeginsSEPTEMBER 2020

Resident Move Ins Begin 1st QTR 1

Community Complete3rd or 4th QTR 2021

ALL FUTURE DATES ARE ESTIMATES ONLY. ACTUAL DATES WILL VARY.

DEAL STRUCTURE

The process of owning in Union Square Apartments, LLC is simple and strait forward. As is the convention in this marketplace – the buyer closes on the lot or lots and then hires a builder to build the fourplex to the specs. In this case,Union Square Apartments, LLC is both the Builder and the Seller of the land offing the convenience of a one-stop shop. You must close on the land and the construction contract. There will be no lot only sales. The following is anexample of hypothetical transaction that results in the Buyer owning a brand new fourplex in Union Square Apartments. The number of draws may vary as well as the % completed at each draw. This is an example only of a singlefourplexes. Total construction time is 4-6 months but could vary. Refer to your contract for details. This is only one example folks to aid comprehension of the process.

• RESERVATION STAGE - NOWLock in your price and choose your lot(s). Open escrow with a $5,000 per fourplex earnest money deposit to be held at title until closing. Lots are moving fast at these prices and this location.

• CLOSING STAGE – 3rd QTR 2020Final Plat expected in July 2020 with closings 30 days later. Close the construction loan (unless paying cash) which will pay for the lot(s) and commence the construction loan for the build.

• CONSTRUCTION STAGE #1 – 20%Builder will use our own capital to get to prepare site, plumb site, and pour the foundation, as an example of a typical stage of completion for the first draw.

• DRAW #1 – 20%City inspector signs off on work. Builder submits a draw request. The bank will use a third-party inspector to determine % of completion. Owner can have your own inspector verify. Owner Signs off on Draw Request.Builder is reimbursed for work completed.

• CONSTRUCTION STAGE #2 – 20%Builder will use our own capital to get to get to the next state of construction – electrical, framing, ducting, and roofing.


• CONSTRUCTION STAGE #3 – 40%Builder will use its own capital to get to complete the brick and stone exteriors and finish the interior and finish the interior.


• CONSTRUCTION STAGE #4 – 20%Builder completes finish work, the fencing, driveways, carports, HVAC, and landscaping with its own capital. The fourplex is 100% complete. Banks third party inspector, owner and/or owner’s inspector sign off after allconstruction issues, if any, have been satisfied or fixed.

• DRAW #4 – 20%City inspector issues Certificate of Occupancy. Builder submits a final draw request. The bank will use a third-party inspector to determine % of completion. Owner can have your own inspector verify. Owner Signs off onfinal draw Request. Builder is reimbursed for work completed.

• BUILD COMPLETEThe owner is now the proud owner of a quality fourplex that can be rented and occupied immediately. A builder warranty is now in effect.

DEAL STRUCTURE

This is an example of the completion and inspection reporting for a single fourplex.

Texas

Texas is the #2 largest U.S. State in terms of surface area and total population. Its economy is larger than thenations of Australia and South Korea. It’s a great place to own rental property as it is landlord friendly and agrowing population ensures a need for housing well into the future. Not all geographical areas in Texas aresharing in the dramatic population increase. The map on the lower right side shows where the greatestconcentrations of populations can be found.

Source: http://worldpopulationreview.com/us-counties/tx/hidalgo-county-population/ Arrows points to our county.

http://worldpopulationreview.com/us-counties/tx/hidalgo-county-population/

Location: Edinburg, Texas

THE ULTIMATE FOURPLEXES™ are in the City of Edinburg. The following is anexcept from the Edinburg City website:

“Edinburg lies at the epicenter of one of the most dynamic regions in NorthAmerica, a region that is keeping pace with the speed of change. Edinburg is theeducational and technological capital of a Texas-Mexico border region. With apopulation of more than 2 million, this region has the highest concentration ofpeople between the ages of 18 and 24 in North America. The result is an excellentand trainable workforce and one of the largest concentrations of Maquiladoraplants along the U.S. Mexico border.

Edinburg is located in the Rio Grande Valley, a four-county area that has a largerpopulation than South Dakota, Delaware, North Dakota, Vermont, Alaska, andWyoming. With a land area of 11,122,712 square kilometers, the Rio Grande Valleyis almost twice the size of Delaware and four times the size of Rhode Island.

Edinburg is the county seat of Hidalgo, the seventh largest county in Texas and ishome to the University of Texas RGV, with over 19K students. Centrally locatedwithin one of the largest trade corridors in the world, Edinburg is also the gatewayto U.S. 281, which is being transformed in to Interstate 69 or the NAFTA Highway.In 1999, more than 54% of all trade between Mexico and the United States madeits way through South Texas ports of entry.

Edinburg is a pro-business community with an excellent quality of life, educationalfacilities and strong civic pride. It has been recognized as an All-America City threetimes by the National Civic League, placing it among a handful of outstandingcommunities in the nation. Under the auspices of The University of Texas System, itwill soon open the first major Medical Research Center along the U. S.- Mexico.”

http://mail.cityofedinburg.com/about.php


The McAllen – Edinburg – Mission MSA Metroplex

This is the 5th Largest Metroplex in the State andgrowing. The 2020 current population is estimatedat 1M and is projected to hit 1.8M by 2050. Once anmetroplex passes 1M residents it starts to getstadiums, arenas, and professional sports teams.That has already started here.

The TOP 4 MSA in Texas are mature and the low caprates reflect that. There is still time to enter theMcAllen+ MSA at an attractive price point withplenty of upside and higher current cash flow.

The MSA is home to the McAllen Foreign Trade Zone#12, which houses about 410 companies from 42countries and facilitated more than $30 billion inborder trade during 2015 (McAllen Foreign TradeZone Board; most recent data available). La Plazashopping mall in McAllen, owned by Simon Malls,reports $400M in annual sales – much of it to crossborder shoppers. There is over $3B in retail sales onan annual basis in the MSA. With its numerous top-rated hospitals this MSA is the first-choicedestination for health care for wealthy Mexicansseeking the best quality care. This is the point ofentry for all tropical fruit that is imported into theUnited States from Mexico and Central America.Firms from South Korea have been setting upfactories here. The new USMCA will only increasethe level of companies moving into the MSA, like themany South Korean firms.

That was 10 years ago. Now the population here is over 1M people.



➢ 8,400 New Residents Added ➢ But only ~600 new Apartments Constructed

These slides were taken from a real estate symposium hosted by The City of Edinburg in 2019. This barely scratches the surface if 8000 new residents show up every year.





LOCAL UNIVERISTIES AND COLLEGES

https://www.utrgv.edu/school-of-medicine/index.htmhttps://www.utrgv.edu/en-us/about-utrgv/administration/index.htm

https://mcallen.tamu.edu/https://www.southtexascollege.edu/

https://www.utrgv.edu/school-of-medicine/index.htm

https://www.utrgv.edu/en-us/about-utrgv/administration/index.htm

https://mcallen.tamu.edu/

https://www.southtexascollege.edu/

STATE FARM ARENA

BERT OGDEN ARENA - $82M Home of the Vipers Basketball Team

H-E-B PARK - EDINBURG

H-E-B Park, a $16.8+ million sports and entertainment outdoor complex that features a 9,700 seat capacity soccer-specific stadium, has scored another major goal for its hometown with news that WalletHub, a national personal finance website, has named Edinburg as 2nd Best Small City for Soccer Fans for 2017, the Edinburg Economic Development Corporation has announced. In addition, WalletHub rated Edinburg 29th best among all U.S. cities for soccer fans, an accomplishment that places it in the top 10 percent in the nation, among the cities involved in the study, for community involvement in that sport. “Once more, a national, independent, and very credible source has concluded what we know very well here at home –Edinburg has a very high quality-of-life to offer its citizens from all walks of life,” said Agustín García, Executive Director for the Edinburg Economic Development Corporation. “We have one of the best public school systems in the state, we feature one of the largest University of Texas campuses, with its own School of Medicine, our hospital systems are nationally-ranked, and by the time 2017 is completed, the construction of new homes and businesses in Edinburg for the year is anticipated to pass $200 million.”

READTHIS!

DISCLAIMER AND DISCLOSURE: This presentation is for informative and discussion purposes only. No property is for sale at this time. Union Square Apartments, LLC is accepting refundable reservation depositsonly and entertaining offers until it can legally begin entering into binding contracts. Nothing herein including floorplans, renderings, and photos should be construed as final and are subject to change.Variation may occur. Seller of lots and the builder of the fourplexes is Union Square Apartments, LLC. Union Square Apartments, LLC has an exclusive takedown agreement with the land developer AceroInvestments, LLC to buy 100% of the finished lots at Union Square Apartments for resale to purchasers who enter into an agreement to build a fourplex upon said lots. There is some common ownershipbetween Union Square Apartments, LLC and Acero Investments, LLC. Full disclosures are included in documents and available upon request. No lot sales are being made without a contract to build a fourplex.Plans are subject to change without notice. All interested parties must do their own due diligence and rely on their own projections. All estimates and projections are for YEAR 1 only – actual results may bemore or less favorable than the projection. In future years, rents and expenses may be higher or lower than the estimates shown herein. Availability and pricing subject to change at any time, without notice.There is no guaranty of any return or cap rate. No guaranty that there will be available financing. All fourplexes are delivered vacant. Buyers assume all risks and rewards of property ownership. Not intendedas a solicitation in jurisdictions where prior registration is required. Equal opportunity housing. Not responsible for errors, buyers to verify all figures prior to purchase.

For more information contact:

Ryan HarrisPrincipal, Managing MemberUnion Square Apartments, [email protected](310) 560-9111

Janet ClementPrincipal, Managing MemberUnion Square Apartments, [email protected](310) 347-7025

Documents

FOR SALE ENTIRE APARTMENT COMMUNITY …...venues, and a Univeristy of Texas campus with over 19,000 students just outside of the gates. Featuring 98 fourplexes, Union Square Apartments