NEAR CAMPUS PORTFOLIO

43 Hyde Park

45 FlatsHyde Park PlaceA 3-PROPERTY, 136-UNIT

VALUE-ADD OPPORTUNITY IN PREMIER CENTRAL AUSTIN LOCATIONFor sale as portfolio or individual assets

NEAR CAMPUS PORTFOLIO

portfolio overview

PORTFOLIO INVESTMENT HIGHLIGHTS

183

SPRI

NGDA

LE R

D

183

290

W ANDERSON LN

W RUNDBERG LN

DESS

AU R

D

DECK

ER L

N

W BRAKER LN

BURN

ET R

D

N LAM

AR B

LVD

GU

AD

ALU

PE S

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N LA

MAR

BLV

D

E HOWARD LN

W 45TH ST

W 51ST STW 38TH ST

BEE CAVE RD

MANOR RD

E MARTIN LUTHER KING JR BLVD

E 12TH ST

E 7TH ST

360

275

360

2222

2222

620

1

1

MANOR ROADKnown as “Restaurant Row”; eclectic restaurants, neighborhood bars and coffee shops such as Unit-D Pizzeria, Dai Due, Eastside Cafe, Salty Sow, Haymaker, Thunderbird Coffee, and Sugar Mama’s Bakeshop

NORTH LOOP North central Austin’s answer to edgy SoCo; a vintage-inspired out of downtown destination including Epoch Coffee, Blue Velvet, Workhorse Bar, Room Service Vintage, drink.well, and Foreign & Domestic

MUELLER REDEVELOPMENT711-acre mixed-use urban village consisting of 4M SF of office and retail, more than 5,700 homes and 140 acres of parks, trails, and open space; home to the Dell Children’s Medical Center of Central Texas, Austin Studios and 83,000 SF H-E-B Grocery

THE DOMAINAustin’s premier retail and entertainment destination with 1.3M SF of retail, dining, hotels, and entertainment; major employers include HomeAway, Amazon, TippingPoint, Hanger Inc., and IBM

JJ PICKLE RESEARCH CAMPUS

NATIONAL INSTRUMENTS

ACC HIGHLAND CAMPUS

TX DEPT OF PUBLIC SAFETY

DELLYODLE

RACKSPACE

GM

THE ARBORETUMA premier outdoor mixed-use lifestyle center home to more than 40 fine retailers and restaurants

BURNET RDCorridor undergoing revitalization; home to numerous new restaurants and bars including Barley Swine, Bufalina Due, Lick, Taco Flats, Noble Sandwich, Little Woodrow’s, and Pinthouse Pizza

LAMAR CENTRALNew 165,000 SF , Class A mixed-use development; tenants include Kendra Scott (HQ), Snooze Eatery, and future restaurant from The Chameleon Group

THE TRIANGLEA 30-acre, Class A mixed-use development with living, retail and park space; tenants include Galaxy Cafe, Maudie’s Tex Mex, Hopdoddy Burger Bar, and Orange Theory Fitness

BAZAARVOICE

INDEED.COM

SAMSUNG

35

35

E PARMER LN

DOWNTOWN AUSTINEmployment base of 150,000+ jobs; population of approx 11,000; ranked #1 “Best City to Live in U.S.”

MEDICAL DISTRICTDell Medical School and its teaching hospital, Dell Seton Medical Center at the University of Texas, are part of a vibrant health district and one of Austin’s largest and most anticipated development projects; the Dell Seton Medical Center is a 500,000 square foot, 211-bed cutting-edge teaching hospital and Level 1 Trauma Center

PORTFOLIO LOCATION AERIAL


43 Hyde Park

Hyde Park Place

45 Flats

• Irreplaceable in-fill real estate in centrally located Hyde Park, the oldest neighborhood in Austin and only two miles from the University of Texas at Austin

• Convenient locations provide residents easy access to major retail, dining, and entertainment – less than a ½ mile from The Triangle, less than 1.5 miles from Airport Blvd, less than two miles from the Mueller Redevelopment, and less than two miles from the Burnet Road corridor

• Great opportunity for scale: 136 units spread across three properties allow new owner to gain a substantial footprint in Hyde Park as well as management efficiencies; can also be purchased individually

• Turning over the rent roll to the highest in place rental rate by unit type would gain a new owner $93,000+ in additional annual income across the portfolio, assuming a 5% vacancy factor

• 45 Flats has a Land Use Restriction Agreement (LURA) – 21 total units must be rented to tenants below certain income thresholds

– 12 units must be rented to Very Low Income persons – current maximum allowable rents are $693 for a studio and $795 for a 1 BR

– 9 units must be rented to Low Income persons – current maximum allowable rents are $1,000 for a studio and $1,145 for a 1 BR

• Current owner has done the heavy lifting, spending over $725k across the portfolio to cure deferred maintenance and upgrade exteriors and common areas

• Outstanding value-add opportunity

– Unit interiors are primed for a new owner to provide a modern finish out and increase rental rates

– 4 units at 43 Hyde Park have Euro washer/dryers and are receiving a $65 premium – new owner can continue installation of these across the portfolio

– Future interior upgrades may include cherry wood cabinets, granite/quartz countertops, black/stainless steel appliances, vinyl wood flooring throughout, updated lighting and plumbing fixtures, and modern kitchen backsplashes

– Other upgrade possibilities include: private patio dog yards, bike storage lockers, outdoor BBQ grills, covered parking, etc.


A 3-PROPERTY, 136-UNITMULTIHOUSING INVESTMENT OPPORTUNITY

PRICE: TBD BY MARKETFor sale as a portfolio or individual assets

portfolio overview

PORTFOLIO AREA HIGHLIGHTS

• Irreplaceable real estate located in the heart of Hyde Park, one of Austin’s most desirable neighborhoods attracting students (both graduate and undergraduate) and young professionals (Austin’s fastest growing demographic)

• Average household income of $85,590 (US Census Bureau, Oct ‘17)• The University of Texas at Austin (UT) is the second largest university in Texas (total enrollment of approximately 51,000 students) and has

an on-campus housing supply of just 8,215 beds, resulting in 16% of students living on campus; as a result, almost 43,000 students have a demand for off-campus housing each year

• Three miles away is the new UT Austin Medical District – one of Austin’s largest and most anticipated development projects; spans from 12th Street to MLK and bordered by IH-35 & Trinity

• The newly completed Dell Medical School is the first medical school to be built at a tier-one research university in decades

• The district will include over 575,000 square feet of space dedicated to education, administration, and research

• At completion, the medical district is expected to create 6,900 jobs

• Major employers in the area include the University of Texas (faculty of ±21,000), St. David’s Healthcare (8,100 employees), Seton Healthcare (12,770 employees), and Austin Studios (8,000 employees)

• Properties are located within the historic Hyde Park neighborhood and within walking distance of the premier Triangle Development , popular North Loop District, and the growing Airport Boulevard corridor

• Hyde Park features several dining and retail options along nearby Duval Road including Hyde Park Bar & Grill, Mother’s Cafe and Garden, Julio’s Cafe, Quack’s 43rd Street Bakery, Asti, Fresh Plus Grocery, Flightpath Coffee House, and Biscuits and Groovy

• The Triangle features 30-acres of Class A, mixed-use development with residences, park space, and retail, including local favorites like Galaxy Cafe, Maudie’s Tex Mex, Hopdoddy Burger Bar, and Orange Theory Fitness

• The revitalized Burnet Road corridor is less than two miles away with numerous restaurants and bars, including Pinthouse Pizza, Barley Swine, Bufalina Due, Lick, Taco Flats, Noble Sandwich, and Little Woodrow’s

• North Loop District is less than two miles from the properties and features vintage stores, record shops, coffee shops, bars, and restaurants

• Airport Boulevard is quickly becoming a corridor for dining, including both new options as well as local Austin institutions

• Just over two miles from the Mueller Redevelopment – a 711-acre mixed-use urban village consisting of 4M square feet of office and retail, more than 5,700 homes and 140 acres of parks, trails, and open space; also home to the Dell Children’s Medical Center of Central Texas and new 83,000 square foot H-E-B Grocery

• Aldrich Street (Mueller Town Center) – 42 acres, 1.2M square feet of planned retail, restaurants, and entertainment, including newly opened Alamo Drafthouse; the District will be the “pulse of the Mueller community” and a game changer for the area

• New Austin Community College (ACC) Highland Mall campus: the $46M campus renovation will encompass 200,000 square feet of instruction space and house 6,000 students in its first phase

• Regional Workforce Innovation Center – a $152.8M project including residential, retail, hospitality, office, and parkland is scheduled to be completed in 2019

• Employment base of 190,060 jobs (US Census Bureau, Oct ‘17)

• Austin MSA in-migration of 58,300 from Jul ‘15 to Jul ‘16 (U.S. Census Bureau, Feb ‘17)

• Austin ranked #1 among “Best Cities to Live in the U.S.” (U.S. News & World, Feb ‘17)

Dell Medical School

Hyde Park

The Triangle




SITE INFORMATION

Address 4310 Avenue B, Austin, TX 78751

Number of Units 29

Year Built 1972

Land Size 0.45 acres (64.44 units/acre)

NRA 12,173± SF

Occupancy 100% (as of Oct ‘17)

MECHANICAL SYSTEMS

Electrical Individually metered (resident pays)

HVAC Individual climate controlled units

Hot Water Master-metered (resident pays)

Water/Sewer Master-metered (resident pays)

CONSTRUCTION

Style Garden

Foundation Reinforced concrete slabs

Exterior Brick and siding

Roof Flat

Floor Covering Vinyl plank

Paving Asphalt

Wiring Aluminum

INTERIOR AND COMMUNITY FEATURES• Studio and two-bedroom floorplans, ideal for students and young

professionals who dominate the tenancy

• Well-maintained, landscaped courtyard

• Euro washer/dryers*

• Vinyl plank flooring throughout

• Modern track lighting in kitchens

• Ceiling fans

*in select units

43 hyde park PROPERTY DETAILS

UNIT TYPE # OF UNITS

SIZE (SF)

MKT RENT PER UNIT

MKT RENT PER SF

STUDIO 28 406 $975 $2.40

2BR/1BA 1 805 $1,500 $1.86

AVG/TOTAL 29 420 $993 $2.37 *Owner and Broker make no representation as to the actual square footage of any units. Prospective

purchasers are encouraged to independently confirm the measurement of all units.

PROFORMAINCOME TOTAL PER UNIT

GROSS SCHEDULED RENT1 $345,600 $11,917

Less: (Gain) / Loss-to-Lease 12,096 417

GROSS POTENTIAL INCOME $333,504 $11,500

Less: Vacancy 17,280 596

TOTAL RENTAL INCOME $316,224 $10,904

Plus: RUBS Income2 18,039 622

Plus: Other Income2 3,400 117

TOTAL OTHER INCOME 21,438 739

EFFECTIVE GROSS INCOME $337,662 $11,644

EXPENSES TOTAL PER UNIT

Repairs and Maintenance $15,950 $550

Payroll 0 0

Administrative 1,450 50

Marketing 10,150 350

Utilities3 21,636 746

TOTAL VARIABLE EXPENSES $49,186 $1,696

Taxes4 70,212 2,421

Insurance 5,800 200

Management Fee 16,883 582

TOTAL OPERATING EXPENSES $142,081 $4,899

Plus: Capital Reserves5 8,700 300

TOTAL EXPENSES $150,781 $5,199

NET OPERATING INCOME $186,881 $6,4441. GSR based on market rents as of 9/21/17 rent roll2. RUBS & Other Income grown 3% from Aug’17 T12 Actuals3. Adjusted Utilities grown 3% from Aug’17 T12 Actuals4. Taxes based on 2016 mill rate (2.228941)5. Numbers do not reflect actual expense

43 HYDE PARKA 29-UNIT MULTIHOUSING INVESTMENT OPPORTUNITY

PRICE: TBD BY MARKET

HYDE PARK PLACE PROPERTY DETAILS

SITE INFORMATION

Address 4400 Avenue B, Austin, TX 78751

Number of Units 40

Year Built 1971


NRA 16,950± SF

Occupancy 97.5% (as of Oct ‘17)

MECHANICAL SYSTEMS





CONSTRUCTION

Style Garden


Exterior Brick

Roof Flat


Paving Asphalt

Wiring Copper

INTERIOR AND COMMUNITY FEATURES• Studio and two-bedroom floorplans, ideal for students and young


• Well-maintained, landscaped courtyard


• Modern track lighting in kitchens

• Contemporary painted cabinetry with brushed nickle hardware

• Ceiling fans


SIZE (SF)

MKT RENT PER UNIT

MKT RENT PER SF

STUDIO 39 414 $975 $2.36

2BR/1BA 1 804 $1,300 $1.62

AVG/TOTAL 40 424 $983 $2.32 *Owner and Broker make no representation as to the actual square footage of any units. Prospective

purchasers are encouraged to independently confirm the measurement of all units.











EXPENSES TOTAL PER UNIT


Payroll 0 0





Taxes4 95,287 2,382

Insurance 8,000 200






HYDE PARK PLACEA 40-UNIT MULTIHOUSING INVESTMENT OPPORTUNITY


45 flats PROPERTY DETAILS

SITE INFORMATION

Address 4546-4558 Avenue A, Austin, TX 78751

Number of Units 67

Year Built 1968/1970


NRA 24,382± SF

Occupancy 100% (as of Oct ‘17)

MECHANICAL SYSTEMS





CONSTRUCTION

Style Garden


Exterior Stone and siding

Roof Composition shingles (4454 and 4458 replaced in 2015)


Paving Asphalt

Wiring Copper

INTERIOR AND COMMUNITY FEATURES• Studio and one-bedroom floorplans, ideal for students and young



• Spacious built-in shelving

• Ceiling fans

• Fenced-in patio dog yards*

*in select units


SIZE (SF)

MKT RENT PER UNIT

MKT RENT PER SF

STUDIO 46 362 $975 $2.69

STUDIO (Low Income) 8 362 $975 $2.69

STUDIO (Very Low Income)

12 362 $693 $1.91

1BR/BA (Low Income) 1 490 $975 $1.99

AVG/TOTAL 67 364 $924 $2.54

*Owner and Broker make no representation as to the actual square footage of any units. Prospective purchasers are encouraged to independently confirm the measurement of all units.











EXPENSES TOTALPER UNIT


Payroll 0 0





Taxes4 145,438 2,171

Insurance 13,400 200






45 FLATSA 67-UNIT MULTIHOUSING INVESTMENT OPPORTUNITY


property Photos

43 HYDE PARK HYDE PARK PLACE 45 FLATS




This information has been derived from sources deemed reliable. However, it is subject to errors, omissions, price change and/or withdrawal, and no warranty is made as to the accuracy. Further, no warranties or representation shall be made by ARA, A Newmark Company (ARA Newmark) and/or its agents, representatives or affiliates regarding oral statements which have been made in the discussion of the above property. This presentation, prepared by ARA Newmark was sent to the recipient under the assumption that s/ he is a buying principal. Any potential purchaser is advised that s/ he should either have the abstract covering the real estate which is the subject of the contract examined by an attorney of his/her selection, or be furnished a policy of title insurance. Do not contact the Property.

www.aranewmark.comCentral Texas: 901 S. MoPac Expressway, Barton Oaks Plaza II, Suite 275, Austin, TX 78746 T 512.342.8100

PRIMARY CONTACTS: DEBT AND EQUITY CONTACTS:

Matt Michelson512.637.1214 [email protected]

James [email protected]

Matt Greer512.637.1236 [email protected]

Patrick Short512.637.1295 [email protected]

Andrew [email protected]

M52

M51

Additional information for the Near Campus Portfolio is available on

our website at: http://arausa.listinglab.com/NearCampusPortfolio

45 FlatsHyde Park Place43 Hyde Park

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NEAR CAMPUS PORTFOLIO