PREPARED BY: KET Enterprises Incorporated Mark Kalil

PREPARED BY:

KET Enterprises Incorporated

&

Mark Kalil & Associates, Inc.

●12 renovated, upscale assets, positioned in the highly sought after Inner Loop of Houston.

● Ideal for condo conversion.

●Excellent potential land play opportunity.

●Located in the Inner Loop/Montrose/West U. area of

Houston.

●8 properties are cross-collateralized.

●Dura-Last roofs have been installed on all the the properties except 2.

●Easy access to the University of St. Thomas and major employment centers including Downtown Houston, the Galleria, Greenway Plaza and The

Medical Center.

● Strong area demographics.

● The properties are very well maintained, in upscale condition and are incomparable to others in the area.

F6/MIDTOWN PORTFOLIO HIGHLIGHTS


3701 Kirby, Suite 1000 | Houston, TX 77098 T 713.799.8700 | F 713.799.8703 | C 713.829.3765

[email protected] | www.markkalil.com


4295 San Felipe, Suite 355 | Houston, TX 77027 T 713.355.4646 | F 713.355.4331 | C 713.628.9408 [email protected] | www.ketent.com

Updated 2/28/2014

Feb '14 Debt In Place

Property Location Units Age Occ Sq Ft Market Rent Debt Service NOI

1 1901 Whitney Montrose 9 1952 100% 3,560 $7,785 $0 $0 $52,838

2 3402 Garrott Montrose 15 1968 88% 9,232 $16,285 $0 $0 $146,439

3 4414 Yupon Montrose 10 1960 100% 4,950 $8,785 $0 $0 $55,957

4 1219 Banks Museum District 7 1962 100% 5,748 $9,770 $0 $0 $71,271

5 1916-1926 Norfolk Montrose 30 1961/1965 100% 29,807 $1,350 $1,989,644 $131,819 $264,903

6 1903 Portsmouth Montrose 29 1964 97% 24,222 $40,825 $2,171,064 $143,839 $284,030

7 2322 Richton Upper Kirby 20 1962 95% 12,236 $22,640 $838,322 $55,541 $123,336

8 4115 Drake West U 16 1962 100% 10,201 $16,630 $892,263 $60,510 $97,485

9 2300 Park Montrose 20 1966 97% 12,533 $24,760 $1,134,376 $75,155 $180,834

10 3602 Garrott Montrose 20 1963 100% 11,487 $22,735 $1,156,306 $76,608 $52,838

11 3618-3620 Garrott Montrose 16 1960 88% 7,711 $15,275 $809,526 $54,837 $99,670

12 420 W Alabama Montrose 16 1968 100% 9,457 $16,755 $914,005 $60,626 $127,753

Totals/Averages 208 1962 97% 141,144 $203,595 $9,905,505 658,936 $1,557,354

Notes: The F6 properties (highlighted above) are cross-collateralized.

Asking

Market

Market

Market

Market

Market

Market

Market

Market

Market

Market

Market

Market

Market

F6/MIDTOWN PORTFOLIO SUMMARY


3701 Kirby, Suite 1000 | Houston, TX 77098

T 713.799.8700 | F 713.799.8703 | C 713.829.3765 [email protected] | www.markkalil.com


4295 San Felipe, Suite 355 | Houston, TX 77027 T 713.355.4646 | F 713.355.4331 | C 713.628.9408 [email protected] | www.ketent.com

F6/MIDTOWN PORTFOLIO MAP

1

2

3

4

5 6

7

8

9

10 11

12

F6/MIDTOWN PORTFOLIO PICTURES

1901 Whitney 3402 Garrott 4414 Yupon

1219 Banks 1916 Norfolk 1903 Portsmouth

2322 Richton 4115 Drake 2300 Park

3602 Garrott 3618 Garrott 420 W Alabama

1901 WHITNEY ST., HOUSTON, TX 77006

Asking Est Mkt Rent (Dec-13)

Price Per Unit Amortization (months) Estimated Collections

Price Per Sq. Ft. Debt Service

Stabilized NOI Monthly P & I

Interest Rate

Date Due

Water Meter / Master RUBS Est Res for Repl/Unit/Yr

Yield Maintenance

Flat

PRO-FORMA INCOMECurrent Street Rent with a 6% Increase $8,252 / Mo

Estimated Gross Scheduled Income $8,252 / Mo

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

Estimated Vacancy (1% of Total Street Rent)Estimated Concessions and Other Rental Losses (1% of Total Street Rent) 1%

Estimated Utilities IncomeEstimated Other Income $83 / Unit / Yr

Estimated Total Rental Income

ESTIMATED TOTAL PRO-FORMA INCOME $8,214 / Mo

Oct '13 thru Dec '13 Income

Fixed Expenses12/13 OS 2013 Tax Rate & Future Assessment

2014 Insurance Quote 2014 Insurance Quote

$1,372 per Unit $2,382 per Unit

Gas

Total Utilities $665 per Unit $665 per Unit

Other ExpensesGeneral & Admin & MarketingR&M (including maint salaries)Labor CostsContract ServicesManagement Fees 3.75% $379 per Unit 3.75% $411 per Unit

Total Other Expense $1,988 per Unit $1,833 per Unit

Note: $3727.72 of CapEx have been removed from the Repairs & Maintenance section of Expenses

Total Operating Expense $4,025 per Unit $4,881 per Unit

Reserve for Replacement $200 per Unit $200 per Unit

Total Expense $4,225 per Unit $5,081 per Unit

Net Operating Income (Actual Underwriting)

Physical Information Financial Information Proposed Loan Parameters Operating Information

Avg Unit Size 396 N/A $7,572

Number of Units 9 Market Est New Loan @ 70% of Asking $7,785

Units per Acre 78.408 Property Tax Information

Land Area (Acres) 0.11 $52,837 Est Ins per Unit per Yr $259

Net Rentable Area 3,560 N/A Physical Occ (Dec-13) 100%

Elec Meter Indiv Yes 2013 Taxes $11,043

2013 Tax Assessment $375,817

Date Built 1952 Tax Rate (2013) 2.93839

INCOME

99,025

99,025

HVAC System Indiv *Current Value is Stabilized Value less Rehab, Profit and Carry Est Future Taxes $19,108

Roof Style Est Future Tax Assessment $650,300

(1,981)

(990) 1%

MODIFIED ACTUALS PRO-FORMA

98,563

98,563

(990)

2,749 $305 / Unit / Yr

750

Insurance $2,329 $259 per Unit

$90,865

EXPENSE December 2013 YTD Expenses Estimated Expenses

Fixed Expenses Estimated Fixed Expenses

$2,329 $259 per Unit

Total Fixed Expense 12,348 21,437

Utilities Utilities Estimated Utilities

Taxes $10,019 $1,113 per Unit $19,108 $2,123 per Unit

Electricity $1,119 $124 per Unit $1,119 $124 per Unit

Water & Sewer $3,704 $412 per Unit $3,704 $412 per Unit

$1,166 $130 per Unit $1,166 $130 per Unit

$6,699 $744 per Unit $4,500 $500 per Unit

5,989 5,989

Other Expenses Estimated Other Expenses

$2,180 $242 per Unit $2,700 $300 per Unit

$3,407 Added by Broker $3,696

17,890 16,500

$3,343 $371 per Unit $3,343 $371 per Unit

$2,261 $251 per Unit $2,261 $251 per Unit

52,838 52,837

36,227 43,926

1,800 1,800

38,027 45,726

NOTES: ACTUALS: Actuals are based on owner's 12/13 YTD operating statement. PRO FORMA: Insurance is estimated. Taxes are 2013 rate and estimated future assessment. All other expenses are

estimated. The owner keeps the assets much cleaner than normal.

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. THIS IS A BROKER PRICE OPINION OR COMPARATIVE MARKET ANALYSIS AND SHOULD NOT BE CONSIDERED AN APPRAISAL. In making any decision that relies upon my work, you should know that I have not followed the

guidelines for development or an appraisal or analysis contained in the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation.

2/28/2014 MidtownPortfolio-Summary.xlsx

1901 WHITNEY ST., HOUSTON, TX 77006 Keymap: 493N

Construction Quality: B+

Age: 1952 Access Gates Park & Ride Nearby Mortgage Balance

Elec Meter: Indiv Cable Ready Shuttle Route Amortization Houston ISD $1.186700

A/C Type: HVAC Ceiling Fans School Bus Pick-up P & I Harris County $0.414550

Water: Indiv Mini Blinds Type Harris County Flood Control $0.282700

Wiring: Copper Covered Parking Assumable Port of Houston Authority $0.017160

Roof: Flat Monthly Escrow Harris County Hospital District $0.170000

Paving: Concrete Origination Date Harris County Education Dept $0.006358

Materials: Brick/Wood Due Date Houston Community College $0.097173

# of Stories: 2 Interest Rate City of Houston $0.638750

Parking: Yield Maintenance HC ID 6 $0.125000

Buildings: 1 Transfer Fee 2013 Tax Rate/$100 $2.938391

Units/Acre: 78.41 *In Select Units 2013 Tax Assessment $375,817

3 Mo Avg 7,572$

Jan 2013 5,492$ Feb 2013 6,897$ Mar 2013 3,291$ Apr 2013 6,831$ May 2013 8,447$ June 2013 7,872$ July 2013 6,418$ Aug 2013 4,464$ Sept 2013 7,361$ Oct 2013 7,337$ Nov 2013 7,286$ Dec 2013 8,093$

PROPERTY INFORMATION AMENITIES EXISTING MORTGAGE TAXING AUTHORITY - HARRIS COUNTYACCT NO: 0090980000001

COLLECTIONS

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

PROPERTY HIGHLIGHTS

$-

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

Jan 2013

Feb 2013

Mar 2013

Apr 2013

May 2013

June 2013

July 2013

Aug 2013

Sept 2013

Oct 2013

Nov 2013

Dec 2013

The 1901 Whitney Apartments, is a two story, garden-style, apartment community located in the Montrose submarket of Houston,Texas. The asset was originally built in 1960. Residents enjoy ample amenities which include: mini-blinds, ceiling fans, a an appliance package which includes a gas stove, refrigerator and a dishwasher, and a beautifully landscaped courtyard. Currently there are no leasing concessions. The asset is covered under a blanket insurance policy that has better than full replacement coverage and a 2% deductible for wind, named storms and full liability. The owner has extremely and carefully upgraded this asset. .

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. THIS IS A BROKER PRICE OPINION OR COMPARATIVE MARKET ANALYSIS AND SHOULD NOT BE CONSIDERED AN APPRAISAL. In making any decision that relies upon my work, you should know that I have not followed the guidelines for development or an appraisal or analysis contained in the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation.

1901 WHITNEY ST., HOUSTON, TX 77006 Unit Mix

Unit # Type No. Units Sq Ft Total SqFt Market Rent Total Rent Rent/SF

1 1 Bed/1 Bath 1 396 396 $995 $995 $2.52

2 1 Bed/1 Bath 1 396 396 $895 $895 $2.26

3 1 Bed/1 Bath 1 396 396 $775 $775 $1.96

4 1 Bed/1 Bath 1 396 396 $895 $895 $2.26

5 1 Bed/1 Bath 1 396 396 $750 $750 $1.90

6 1 Bed/1 Bath 1 396 396 $975 $975 $2.46

7 1 Bed/1 Bath 1 396 396 $875 $875 $2.21

8 1 Bed/1 Bath 1 396 396 $975 $975 $2.46

9 1 Bed/1 Bath 1 396 396 $650 $650 $1.64

9 396 3,560 $865 $7,785 $2.19

Apartment Features Community FeaturesAppliance Package(Gas Stove, dishwasher, refrigerator) Great Inner Loop Location

Renovated Interiors Gated Community w/off Street Parking

Onsite Laundry Facility

Sprinkler System

Covered Parking

UNIT MIX JAN 2014

TOTALS AND AVERAGES Total UnitsAverage Sq.

Ft.

Total Sq.

Feet

Average

Rent/Unit

Total

Rent

Average

Rent/ SF

3402 GARROTT ST., HOUSTON, TX 77006

h





Interest Rate

Date Due


Yield Maintenance

Pitched










####


Gas


Other ExpensesGeneral & Admin & MarketingR&M (including maint salaries)Labor CostsContract Services (including trash)Management Fees 3.75% $505 per Unit 3.75% $524 per Unit


Note: $4,228.41 of CapEx have been removed from the Repairs & Maintenance section of Expenses






Avg Unit Size 615 N/A 300 $16,846





Elec Meter Indiv 2013 Taxes $9,129



INCOME

205,191

205,191

HVAC System Indiv Est Future Taxes $41,595

Roof Style Est Future Tax Assessment $1,430,663

(4,104)

(2,052) 1%


209,513

209,513

(4,104)

5,369 $358 / Unit / Yr

9,213


$202,150



$8,155 $544 per Unit



Taxes $8,598 $573 per Unit $41,595 $2,773 per Unit



$2,142 $143 per Unit $2,142 $143 per Unit

11,411 11,411


$2,276 $152 per Unit $3,900 $260 per Unit

$4,837 $322 per Unit $7,500 $500 per Unit

$5,545 $370 per Unit $5,545 $370 per Unit

24,547 29,110

52,711 90,271

3,000 3,000

$4,309 $287 per Unit $4,309 $287 per Unit


55,711 93,271

146,439 116,241


estimated.







3402 GARROTT ST., HOUSTON, TX 77006 Keymap: 493S





Water: RUBS Outside Storage Type Harris County Flood Control $0.282700

Wiring: Copper Mini Blinds Assumable Port of Houston Authority $0.017160

Roof: Pitched Monthly Escrow Harris County Hospital District $0.140000







3 Mo Avg 16,846$



COLLECTIONS


PROPERTY HIGHLIGHTS

$-

$5,000

$10,000

$15,000

$20,000

$25,000

Jan 2013

Feb 2013

Mar 2013

Apr 2013

May 2013

June 2013

July 2013

Aug 2013

Sept 2013

Oct 2013

Nov 2013

Dec 2013

The 3402 Garrott Apartments, is a two story, garden-style, apartment community located in the Montrose submarket of Houston,Texas. The asset was originally built in 1968. Residents enjoy ample amenities which include: mini-blinds, kitchen pantries, ceiling fans, a full appliance package, and a beautifully landscaped courtyard with a water feature. Currently there are no leasing concessions. 15 of the 17 units here are owned by the owner (fractured condo project). The asset is covered under a blanket insurance policy that has better than full replacement coverage and a 2% deductible for wind, named storms and full liability. The property is in excellent condition. This property is available all cash or new loan, with no debt impediments.


3402 GARROTT ST., HOUSTON, TX 77006 Unit Mix


1 1 Bed/1 Bath 1 570 570 $895 $895 $1.57

2 1 Bed/1 Bath 1 570 570 $1,125 $1,125 $1.98

3 2 Bed/1.5 Bath 1 1,003 1,003 $1,225 $1,225 $1.22

4 1 Bed/1 Bath 1 553 553 $1,050 $1,050 $1.90

5 1 Bed/1 Bath 1 553 553 $1,095 $1,095 $1.98

6 1 Bed/1 Bath 1 553 553 $1,095 $1,095 $1.98

7 1 Bed/1 Bath 1 553 553 $1,095 $1,095 $1.98

8 2 Bed/1.5 Bath 1 1,003 1,003 $1,295 $1,295 $1.29*9 Maintenance fee 1 884 884 $200 $20010 1 Bed/1 Bath 1 553 553 $995 $995 $1.80*11 Maintenance fee 1 $200 $200

12 1 Bed/1 Bath 1 553 553 $695 $695 $1.2613 1 Bed/1 Bath 1 553 553 $925 $925 $1.6714 1 Bed/1 Bath 1 553 553 $1,250 $1,250 $2.2615 1 Bed/1 Bath 1 553 553 $1,095 $1,095 $1.9816 1 Bed/1 Bath 1 553 553 $1,175 $1,175 $2.1217 1 Bed/1 Bath 1 553 553 $875 $875 $1.58

* Units are individually owned and are not being conveyed

17 595 10,116 $958 $16,285 $1.61

Apartment Features Community FeaturesAppliance Package Great Inner Loop Location



Sprinkler System

Water Feature

UNIT MIX JAN 2014

TOTALS AND AVERAGESTotal

Units

Average Sq.

Ft.

Total Sq.

Feet

Average

Rent/Unit

Total

Rent

Average

Rent/ SF

% Units by Type

88%

12%

1 Bed/1 Bath

2 Bed/1.5 Bath

4414 YUPON ST., HOUSTON, TX 77006





Interest Rate

Date Due


Yield Maintenance

Pitched










####


Gas


















INCOME

110,691

110,691



(2,214)

(1,107) 1%


111,284

111,284

(1,107)

3,416 $342 / Unit / Yr

1,604


$105,977



$3,459 $346 per Unit




Electricity $583 $58 per Unit $583 $58 per Unit


$860 $86 per Unit $860 $86 per Unit

5,557 5,557


$1,425 $143 per Unit $2,600 $260 per Unit

$2,351 $235 per Unit $2,351 $235 per Unit


$13,802 $1,380 per Unit $5,000 $500 per Unit

$3,714 $371 per Unit $3,714 $371 per Unit

50,021 50,747

55,957 60,537

25,267 17,838

48,021 48,747

2,000 2,000


estimated.







4414 YUPON ST., HOUSTON, TX 77006 Keymap: 493W




A/C Type: Wall Units Ceiling Fans School Bus Pick-up P & I Harris County $0.414550

Water: RUBS Laundry Rooms Gated Parking Type Harris County Flood Control $0.282700









3 Mo Avg 8,831$



COLLECTIONS


PROPERTY HIGHLIGHTS

$-

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

Jan 2013

Feb 2013

Mar 2013

Apr 2013

May 2013

June 2013

July 2013

Aug 2013

Sept 2013

Oct 2013

Nov 2013

Dec 2013

The 4414 Yupon Apartments, is a two story, garden-style, apartment community located in the Montrose submarket of Houston,Texas. The asset was originally built in 1960. Residents enjoy ample amenities which include: mini-blinds, kitchen pantries, ceiling fans, laundry facilities , a beautifully landscaped courtyard and walk-in closets. Currently there are no leasing concessions. The asset is covered under a blanket insurance policy that has better than full replacement coverage and a 2% deductible for wind, named storms and full liability. The property is in excellent condition. .


4414 YUPON ST., HOUSTON, TX 77006 Unit Mix


1 1 Bed/1 Bath 1 495 495 $895 $895 $1.81

2 1 Bed/1 Bath 1 495 495 $850 $850 $1.72

3 1 Bed/1 Bath 1 495 495 $895 $895 $1.81

4 1 Bed/1 Bath 1 495 495 $895 $895 $1.81

5 1 Bed/1 Bath 1 495 495 $1,075 $1,075 $2.17

6 1 Bed/1 Bath 1 495 495 $815 $815 $1.65

7 1 Bed/1 Bath 1 495 495 $775 $775 $1.57

8 1 Bed/1 Bath 1 495 495 $895 $895 $1.81

9 1 Bed/1 Bath 1 495 495 $795 $795 $1.6110 1 Bed/1 Bath 1 495 495 $895 $895 $1.81

10 495 4,950 $879 $8,785 $1.77

Apartment Features Community FeaturesGreat Inner Loop Location



Sprinkler System

UNIT MIX JAN 2014


Ft.

Total Sq.

Feet

Average

Rent/Unit

Total

Rent

Average

Rent/ SF

1219 BANKS ST., HOUSTON, TX 77006





Interest Rate

Date Due


Yield Maintenance

Flat










2014 Insurance quote


Gas

Total Utilities $1,131 per Unit $1,131 per Unit
















INCOME

123,102

123,102

HVAC System Indiv *Current Value is Stabilized Value less Rehab, Profit and Carry Est Future Taxes $24,434


(2,462)

(1,231) 1%


122,692

122,692

(1,231)

3,403 $486 / Unit / Yr

1,112


$120,476





Insurance $3,493 $499 per Unit 2014 Insurance quote $3,493 $499 per Unit

Electricity $526 $75 per Unit $526 $75 per Unit


7,914 7,914


$303 $43 per Unit $1,820 $260 per Unit

$961 $137 per Unit $961 $137 per Unit

$150 $21 per Unit $150 $21 per Unit


$13,589 $1,941 per Unit Higher than normal $2,310 $330 per Unit

$2,600 $371 per Unit Added by Broker $2,600 $371 per Unit

49,205 48,723

71,271 73,969

21,160 11,481

47,805 47,323

1,400 1,400

NOTES: ACTUALS: Actuals are based on owner's 12/13 YTD operating statement. Taxes were estimated by the Broker. PRO FORMA: Insurance is estimated. Taxes are 2013 rate and estimated future

assessment. All other expenses are estimated.







1219 BANKS ST., HOUSTON, TX 77006 Keymap: 493W





Water: RUBS Laundry Rooms 1 Enclosed Garage Type Harris County Flood Control $0.028270






Parking: Garage Yield Maintenance HC ID 11 $0.125000



3 Mo avg 10,040$



COLLECTIONS


PROPERTY HIGHLIGHTS

$-

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

Jan 2013

Feb 2013

Mar 2013

Apr 2013

May 2013

June 2013

July 2013

Aug 2013

Sept 2013

Oct 2013

Nov 2013

Dec 2013

The 1219 Banks Apartments, is a two story, garden-style, apartment community located in the Montrose submarket of Houston,Texas. The asset was originally built in 1962. Residents enjoy ample amenities which include: mini-blinds, kitchen pantries, ceiling fans, laundry facilities,a full appliance package, 1 enclosed garage space and a beautifully landscaped courtyard. Currently there are no leasing concessions. The asset is covered under a blanket insurance policy that has better than full replacement coverage and a 2% deductible for wind, named storms and full liability. .


1219 BANKS ST., HOUSTON, TX 77006 Unit Mix


1 1 Bed/1 Bath 1 1,007 1,007 $1,550 $1,550 $1.54

2 2 Bed/1 Bath 1 832 832 $1,295 $1,295 $1.56

3 1 Bed/1 Bath 1 707 707 $1,250 $1,250 $1.77

4 2 Bed/1 Bath 1 832 832 $1,250 $1,250 $1.50

5 2 Bed/1 Bath 1 832 832 $1,650 $1,650 $1.98

6 1 Bed/1 Bath 1 707 707 $1,225 $1,225 $1.73

7 1 Bed/1 Bath 1 832 832 $1,550 $1,550 $1.86

7 821 5,748 $1,396 $9,770 $1.70

Apartment Features Community Features

Full Appliance Package Great Inner Loop Location



Sprinkler System

One enclosed garage

UNIT MIX JAN 2014


Ft.

Total Sq.

Feet

Average

Rent/Unit

Total

Rent

Average

Rent/ SF

43%

57%

2 Bed/1 Bath

1 Bed/1 Bath

% of Units by Type

1916-1926 NORFOLK & 1919 PORTSMOUTH, HOUSTON, TX 77098





Interest Rate

Date Due


Yield Maintenance

Flat








Jan '13 thru Dec '13 Income



Gas









Physical Information Financial Information Existing Loan Parameters Operating Information

Avg Unit Size 994 N/A 360 $39,592

Number of Units 30 Market Mortgage Balance $1,989,644 $40,330

Units per Acre 43.560 5.22% Property Tax Information

Land Area (Acres) 0.69 $280,397 $10,985 Est Ins per Unit per Yr $515

Net Rentable Area 29,807 N/A $131,819 Physical Occ (Dec-13) 100%

Elec Meter Sub-Metered Yes 2013 Taxes $53,493

2013 Tax Assessment $2,080,266

Date Built 1961/1965 8/1/2023 Tax Rate (2013) 2.57146

INCOME

508,158

508,158

HVAC System Sub-Metered Est Future Taxes $88,742


(10,163)

(5,082) 1%


525,232

525,232

(5,082)

31,101 $1,037 / Unit / Yr

6,299


$475,106



2014 Insurance Quote $15,458 $515 per Unit 2014 Insurance Quote






$5,097 $170 per Unit $5,097 $170 per Unit

$11,143 $371 per Unit $28,500 $950 per Unit

45,059 45,059


$8,571 $286 per Unit $7,800 $260 per Unit

$9,015 $300 per Unit $9,015 $300 per Unit


$43,647 $1,455 per Unit $15,000 $500 per Unit

210,202 244,835

264,903 280,397

90,192 86,576

204,202 235,835

6,000 9,000


estimated.







1916-1926 NORFOLK & 1919 PORTSMOUTH, HOUSTON, TX 77098 Keymap: 492Z


Age: 1961/1965 Access Gates Park & Ride Nearby Mortgage Balance

Elec Meter: Sub-Metered Cable Ready Pool Amortization Houston ISD $1.186700


Water: Master/All Bills Paid Mini Blinds Shuttle Route Type Harris County Flood Control $0.028270






Parking: Yield Maintenance HCID ID 11 $0.125000


Units/Acre: 43.56 *In Select Units 2013 Tax Assessment $2,080,266

3 Mo 2013 42,214$


PROPERTY INFORMATION AMENITIES EXISTING MORTGAGE TAXING AUTHORITY - HARRIS COUNTY

1%+app+legal

$1,989,644 ACCT NO: 0571230000011360

$10,985

Fixed

Yes

$7,029

9/1/2013

8/1/2023

5.22%

Yes

COLLECTIONS


PROPERTY HIGHLIGHTS

$-

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

Jan 2013

Feb 2013

Mar 2013

Apr 2013

May 2013

June 2013

July 2013

Aug 2013

Sept 2013

Oct 2013

Nov 2013

Dec 2013

The 1916-1926 Norfolk & 1919 Portsmouth Apartments, is a two story, garden-style, apartment community located in the Montrose submarket of Houston,Texas. The asset was originally built in 1961/1965. Residents enjoy ample amenities which include: mini-blinds, kitchen pantries, ceiling fans,a full appliance package a beautifully landscaped courtyard and a swimming pool. Currently there are no leasing concessions. The asset is covered under a blanket insurance policy that has better than full replacement coverage and a 2% deductible for wind, named storms and full liability. Highly rehabbed asset in excellent condition. .


1916-1926 NORFOLK & 1919 PORTSMOUTH, HOUSTON, TX 77098 Unit Mix


1 1 Bed/1 Bath 1 725 725 $925 $925 $1.28

2 1 Bed/1 Bath 1 725 725 $1,195 $1,195 $1.65

3 1 Bed/1 Bath 1 725 725 $1,150 $1,150 $1.59

4 1 Bed/1 Bath 1 999 999 $1,595 $1,595 $1.60

5 1 Bed/1 Bath 1 999 999 $1,595 $1,595 $1.60

6 1 Bed/1 Bath 1 725 725 $895 $895 $1.23

7 1 Bed/1 Bath 1 725 725 $1,225 $1,225 $1.69

8 1 Bed/1 Bath 1 725 725 $925 $925 $1.28

9 1 Bed/1 Bath 1 725 725 $1,195 $1,195 $1.65

10 2 Bed/1 Bath 1 999 999 $1,395 $1,395 $1.40

11 2 Bed/1 Bath 1 999 999 $1,195 $1,195 $1.20

12 1 Bed/1 Bath 1 724 724 $1,095 $1,095 $1.51

13 1 Bed/1 Bath 1 724 724 $1,195 $1,195 $1.65

14 2 Bed/2 Bath 1 1,600 1,600 $1,545 $1,545 $0.97

15 1 Bed/1 Bath 1 954 954 $1,295 $1,295 $1.36

16 1 Bed/1 Bath 1 954 954 $1,095 $1,095 $1.15

17 2 Bed/2.5 Bath 1 1,156 1,156 $1,650 $1,650 $1.43

18 2 Bed/2.5 Bath 1 1,156 1,156 $1,295 $1,295 $1.12

19 2 Bed/2.5 Bath 1 1,156 1,156 $1,750 $1,750 $1.51

20 2 Bed/2.5 Bath 1 1,156 1,156 $1,350 $1,350 $1.17

21 2 Bed/2.5 Bath 1 1,156 1,156 $1,595 $1,595 $1.38

22 2 Bed/2.5 Bath 1 1,156 1,156 $1,795 $1,795 $1.55

23 1 Bed/1 Bath 1 954 954 $1,250 $1,250 $1.31

24 1 Bed/1 Bath 1 954 954 $1,095 $1,095 $1.15

25 2 Bed/2.5 Bath 1 1,156 1,156 $1,595 $1,595 $1.38

26 2 Bed/2.5 Bath 1 1,156 1,156 $1,550 $1,550 $1.34

27 2 Bed/2.5 Bath 1 1,156 1,156 $1,695 $1,695 $1.47

28 2 Bed/2.5 Bath 1 1,156 1,156 $1,395 $1,395 $1.21

29 2 Bed/2.5 Bath 1 1,156 1,156 $1,650 $1,650 $1.43

30 2 Bed/2.5 Bath 1 1,156 1,156 $1,350 $1,350 $1.1730 994 29,807 $1,351 $40,530 $1.36

Full Appliance Package

Renovated InteriorsGreat Inner Loop Location

Gated Community w/Covered Parking


Swimming Pool

Apartment/Community Features

UNIT MIX JAN 2014

TOTALS AND AVERAGESTotal

Units

Average Sq.

Ft.

Total Sq.

Feet

Average

Rent/Unit

Total

Rent

Average

Rent/ SF

50%

7%

40%

3%

1 Bed/1 Bath

2 Bed/1 Bath

2 Bed/2.5 Bath

2 Bed/2 Bath

% of Units by Type

1903 and 1917 PORTSMOUTH, HOUSTON, TX 77098





Interest Rate

Date Due


Yield Maintenance

Pitched












Gas










Avg Unit Size 835 N/A 360 $38,929






$200 2013 Tax Assessment $1,515,000

Date Built 1964 8/1/2023 Tax Rate (2013) 2.68396

INCOME

514,395

514,395



(10,288)

(15,432) 3%


484,571

484,571

(10,288)

2,495 $86 / Unit / Yr

3,689


$467,148



$15,833 $546 per Unit




Electricity $29,216 $1,007 per Unit $29,216 $1,007 per Unit


$4,598 $159 per Unit $4,598 $159 per Unit

$34,284 $1,182 per Unit $14,500 $500 per Unit

47,702 47,702


$4,581 $158 per Unit $7,540 $260 per Unit


73,121 56,950

$10,771 $371 per Unit $10,771 $371 per Unit

$5,967 $206 per Unit $5,967 $206 per Unit

284,030 269,321

177,319 209,451

5,800 5,800

183,119 215,251


estimated.







1903 and 1917 PORTSMOUTH, HOUSTON, TX 77098 Keymap: 492Z



Elec Meter: Master Cable Ready Pool Amortization(months) Houston ISD $1.186700

A/C Type: Chill Water Ceiling Fans School Bus Pick-up P & I Harris County $0.414550

Water: Master/All Bills Paid Mini Blinds Shuttle Route Type Harris County Flood Control $0.028270









3 Mo Avg 38,929$



1%+app+legal

$2,171,064 ACCT NO: 0571230000014360

$11,987

Fixed

Yes

$5,434

9/1/2013

8/1/2023

5.22%

Yes

COLLECTIONS


PROPERTY HIGHLIGHTS

$-

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

Jan 2013

Feb 2013

Mar 2013

Apr 2013

May 2013

June 2013

July 2013

Aug 2013

Sept 2013

Oct 2013

Nov 2013

Dec 2013

The 1903 Portsmouth Apartments, is a two story, garden-style, apartment community located in the Montrose submarket of Houston,Texas. The asset was originally built in 1961/1965. Residents enjoy ample amenities which include: mini-blinds, kitchen pantries, ceiling fans, a full appliance package a beautifully landscaped courtyard and a swimming pool. Currently there are no leasing concessions. Asset is "All Bills Paid". The asset is covered under a blanket insurance policy that has better than full replacement coverage and a 2% deductible for wind, named storms and full liability. The property is in excellent condition. .


1903 and 1917 PORTSMOUTH, HOUSTON, TX 77098 Unit Mix


Storage 1 Bed/1 Bath 0 80 0 $0 $0 $0.00

2 1 Bed/1 Bath 1 664 664 $1,195 $1,195 $1.80

3 1 Bed/1 Bath 1 658 658 $1,295 $1,295 $1.97

4 1 Bed/1 Bath 1 658 658 $1,195 $1,195 $1.82

5 1 Bed/1 Bath 1 658 658 $1,195 $1,195 $1.82

6 1 Bed/1 Bath 1 658 658 $1,295 $1,295 $1.97

7 1 Bed/1 Bath 1 658 658 $1,125 $1,125 $1.71

8 1 Bed/1 Bath 1 658 658 $1,295 $1,295 $1.97

9 1 Bed/1 Bath 1 658 658 $1,225 $1,225 $1.86

10 1 Bed/1 Bath 1 658 658 $1,050 $1,050 $1.60

11 2 Bed/1 Bath 1 861 861 $1,695 $1,695 $1.97

12 2 Bed/2 Bath 1 980 980 $1,500 $1,500 $1.53

13 2 Bed/2 Bath 1 980 980 $1,475 $1,475 $1.51

14 2 Bed/2 Bath 1 980 980 $1,495 $1,495 $1.53

15 2 Bed/1 Bath 1 961 961 $950 $950 $0.99

16 2 Bed/2 Bath 1 980 980 $1,650 $1,650 $1.68

17 1 Bed/1 Bath 1 658 658 $1,350 $1,350 $2.05

18 1 Bed/1 Bath 1 658 658 $1,225 $1,225 $1.86

19 1 Bed/1 Bath 1 658 658 $1,125 $1,125 $1.71

20 1 Bed/1 Bath 1 658 658 $1,250 $1,250 $1.90

21 2 Bed/1.5 Bath 1 1,020 1,020 $1,595 $1,595 $1.56

22 2 Bed/1.5 Bath 1 980 980 $1,695 $1,695 $1.73

23 2 Bed/1.5 Bath 1 980 980 $1,795 $1,795 $1.83

24 2 Bed/1.5 Bath 1 1,020 1,020 $1,495 $1,495 $1.47

25 2 Bed/1.5 Bath 1 1,020 1,020 $1,795 $1,795 $1.76

26 2 Bed/1.5 Bath 1 980 980 $1,525 $1,525 $1.56

27 2 Bed/1.5 Bath 1 980 980 $1,450 $1,450 $1.48

28 2 Bed/1.5 Bath 1 980 980 $1,595 $1,595 $1.63

29 2 Bed/1.5 Bath 1 980 980 $1,525 $1,525 $1.56

30 2 Bed/1.5 Bath 1 980 980 $1,550 $1,550 $1.5829 835 24,222 $1,400 $40,605 $1.68


Renovated Interiors

Great Inner Loop Location

Gated Community w/Covered Parking


Swimming Pool


UNIT MIX JAN 2014

TOTALS AND AVERAGES Total UnitsAverage

Sq. Ft.

Total Sq.

Feet

Average

Rent/Unit

Total

Rent

Average

Rent/ SF

48%

7%

41%

4%

1 Bed/1 Bath

1 Bed/1 Bath

1 Bed/1 Bath

2 Bed/2 Bath

% of Units by Type

2322 RICHTON HOUSTON, TX 77098





Interest Rate

Date Due


Yield Maintenance

Flat









Fixed Expenses2013 Tax Rate & Future Assessment 2013 Tax Rate & Future Assessment



Gas










Avg Unit Size 612 N/A 360 $19,563

Number of Units 20 Market Mortgage Balance $838,322 $22,640





$250 2013 Tax Assessment $1,097,045


INCOME

285,264

285,264



(5,705)

(2,853) 1%


278,684

278,684

(5,705)

5,209 $260 / Unit / Yr

2,474


$234,751



$14,828 $741 per Unit






$2,225 $111 per Unit $2,225 $111 per Unit

$24,180 $1,209 per Unit $10,000 $500 per Unit

12,702 12,702


$7,368 $368 per Unit $5,200 $260 per Unit


49,021 34,321

$7,429 $371 per Unit $7,429 $371 per Unit

$1,242 $62 per Unit $1,242 $62 per Unit

123,336 158,092

107,415 116,592

4,000 4,000

111,415 120,592









2322 RICHTON HOUSTON, TX 77098 Keymap: 492U



Elec Meter: Indiv Cable Ready Pool Amortization(months) Houston ISD $1.186700


Water: RUBS Wine Storage Shuttle Route Type Harris County Flood Control $0.282700






Parking: Yield Maintenance



Avg Mo 2013 19,563$



1%+app+legal

$838,322 ACCT NO: 0741070090014360

$4,628

Fixed

Yes

$4,433

9/1/2013

8/1/2023

5.22%

Yes

COLLECTIONS


PROPERTY HIGHLIGHTS

$-

$5,000

$10,000

$15,000

$20,000

$25,000

Jan 2013

Feb 2013

Mar 2013

Apr 2013

May 2013

June 2013

July 2013

Aug 2013

Sept 2013

Oct 2013

Nov 2013

Dec 2013

The 2322 Richton Apartments, is a two story, garden-style, apartment community located in the Montrose submarket of Houston,Texas. The asset was originally built in 1962. Residents enjoy ample amenities which include: mini-blinds, kitchen pantries, ceiling fans,a full appliance package a beautifully landscaped courtyard and a swimming pool. Currently there are no leasing concessions. The asset is covered under a blanket insurance policy that has better than full replacement coverage and a 2% deductible for wind, named storms and full liability. The property is in excellent condition. .


2322 RICHTON HOUSTON, TX 77098 Unit Mix


1 2 Bed/1 Bath 1 907 907 $1,495 $1,495 $1.65

2 1 Bed/1 Bath 1 615 615 $975 $975 $1.59

3 1 Bed/1 Bath 1 552 552 $1,125 $1,125 $2.04

4 1 Bed/1 Bath 1 552 552 $1,150 $1,150 $2.08

5 1 Bed/1 Bath 1 552 552 $1,195 $1,195 $2.17

6 1 Bed/1 Bath 1 552 552 $1,195 $1,195 $2.17

7 1 Bed/1 Bath 1 552 552 $975 $975 $1.77

8 1 Bed/1 Bath 1 552 552 $1,150 $1,150 $2.08

9 1 Bed/1 Bath 1 615 615 $1,175 $1,175 $1.9110 2 Bed/1 Bath 1 907 907 $1,050 $1,050 $1.16

11 2 Bed/1 Bath 1 907 907 $1,550 $1,550 $1.71

12 1 Bed/1 Bath 1 653 653 $1,095 $1,095 $1.6813 1 Bed/1 Bath 1 396 396 $1,150 $1,150 $2.9114 1 Bed/1 Bath 1 552 552 $1,150 $1,150 $2.0815 1 Bed/1 Bath 1 552 552 $1,050 $1,050 $1.9016 1 Bed/1 Bath 1 552 552 $925 $925 $1.6817 1 Bed/1 Bath 1 552 552 $1,195 $1,195 $2.1718 1 Bed/1 Bath 1 552 552 $1,095 $1,095 $1.98

19 2 Bed/2.5 Bath 1 552 552 $1,095 $1,095 $1.9820 2 Bed/1 Bath 1 907 907 $1,595 $1,595 $1.76

20 626 12,528 $1,169 $23,385 $1.87

Apartment Features Community FeaturesFull Appliance Package Great Inner Loop LocationRenovated Interiors Gated Community w/off Street Parking

Onsite Laundry FacilitySwimming Pool

UNIT MIX JAN 2014


Ft.

Total Sq.

Feet

Average

Rent/Unit

Total

Rent

Average

Rent/ SF

75%

20%

5%

1 Bed/1 Bath

2 Bed/1 Bath

2 Bed/2.5 Bath

% of Units by Type

4115 DRAKE HOUSTON, TX 77005




Monthly P & I

Interest Rate

Date Due


Yield Maintenance

Flat









Fixed Expenses2013 Tax Rate & Future Assessment

2014 Insurance Quote


Gas










Avg Unit Size 638 N/A 360 $16,962








INCOME

209,538

209,538



(4,191)

(2,095) 1%


207,019

(4,191)

5,566 $348 / Unit / Yr

2,392

$203,541



207,019



Insurance $9,057 $566 per Unit 2014 Insurance Quote $9,057 $566 per Unit

Taxes $32,179 $2,011 per Unit 2013 Tax Rate & Future Assessment $39,262 $2,454 per Unit



$1,908 $119 per Unit $1,908 $119 per Unit

$28,060 $1,754 per Unit $8,000 $500 per Unit

11,091 11,091


$3,738 $234 per Unit $4,160 $260 per Unit

$5,156 $322 per Unit $5,156 $322 per Unit



106,057 93,632

97,485 113,387

50,530 31,022

102,857 90,432

3,200 3,200









4115 DRAKE HOUSTON, TX 77005 Keymap: 492W



Elec Meter: Indiv Cable Ready Wine Storage Amortization Houston ISD $1.186700


Water: RUBS Pool Shuttle Route Type Harris County Flood Control $0.282700

Wiring: Copper Mini Blinds Covered Parking Assumable Port of Houston Authority $0.017160


Paving: Asphalt Origination Date Harris County Education Dept $0.006358






3 Mo Avg 16,962$



1%+app+legal

$892,263 ACCT NO: 0552910000004360

$5,043

Fixed

Yes

$4,007

9/1/2013

8/1/2023

5.42%

Yes

COLLECTIONS


PROPERTY HIGHLIGHTS

$-

$5,000

$10,000

$15,000

$20,000

$25,000

Jan 2013

Feb 2013

Mar 2013

Apr 2013

May 2013

June 2013

July 2013

Aug 2013

Sept 2013

Oct 2013

Nov 2013

Dec 2013

The 4115 Drake Apartments, is a two story, garden-style, apartment community located in the West University submarket in Houston,Texas. The asset was originally built in 1962 and remodeled in 2001. Residents enjoy ample amenities which include: mini-blinds, kitchen pantries, ceiling fans, a full appliance package and a beautifully landscaped courtyard. Currently there are no leasing concessions. Per owner's operating statement, expenses are higher than normal due to the roof maintenance and exterior painting. The asset is covered under a blanket insurance policy that has better than full replacement coverage and a 2% deductible for wind, named storms and full liability. The property is in excellent condition.


4115 DRAKE HOUSTON, TX 77005 Unit Mix


1 1 Bed/1 Bath 1 603 603 $1,025 $1,025 $1.70

2 1 Bed/1 Bath 1 603 603 $975 $975 $1.62

3 1 Bed/1 Bath 1 603 603 $825 $825 $1.37

4 2 Bed/1 Bath 1 792 792 $1,395 $1,395 $1.76

5 1 Bed/1 Bath 1 570 570 $1,050 $1,050 $1.84

6 1 Bed/1 Bath 1 570 570 $875 $875 $1.54

7 1 Bed/1 Bath 1 570 570 $895 $895 $1.57

8 2 Bed/1 Bath 1 792 792 $1,200 $1,200 $1.52

9 1 Bed/1 Bath 1 603 603 $875 $875 $1.4510 2 Bed/1 Bath 1 603 603 $1,050 $1,050 $1.74

11 1 Bed/1 Bath 1 603 603 $1,195 $1,195 $1.98

12 2 Bed/1 Bath 1 792 792 $1,350 $1,350 $1.7013 1 Bed/1 Bath 1 570 570 $1,195 $1,195 $2.1014 1 Bed/1 Bath 1 570 570 $925 $925 $1.6215 1 Bed/1 Bath 1 570 570 $1,195 $1,195 $2.1016 2 Bed/1 Bath 1 792 792 $1,125 $1,125 $1.42

16 638 10,201 $1,072 $17,150 $1.68

Apartment Features Community FeaturesFull Appliance Package Great Inner Loop Location

Renovated Interiors Gated Community w/Covered Parking


Sprinkler System

Swimming Pool

UNIT MIX JAN 2014


Ft.

Total Sq.

Feet

Average

Rent/Unit

Total

Rent

Average

Rent/ SF

69%

31%

1 Bed/1 Bath

2 Bed/1 Bath

% Units by Type

2300 PARK ST., HOUSTON, TX 77019




Monthly P & I

Interest Rate

Date Due


Yield Maintenance

Flat












Gas




Note than $1,152.92 has been removed from R&M as capex






Avg Unit Size 627 N/A 360 $24,694








INCOME

311,976

311,976



(6,240)

(3,120) 1%


309,184

309,184

(6,240)

7,325 $366 / Unit / Yr

5,482


$296,332



$10,933 $547 per Unit






12,695

$2,215 $111 per Unit $2,215 $111 per Unit

12,695


$9,743 $487 per Unit $6,821 $341 per Unit

$5,081 $254 per Unit $5,081 $254 per Unit


$20,897 $1,045 per Unit Higher than normal $10,000 $500 per Unit

$7,429 $371 per Unit $7,429 $371 per Unit

115,498 132,464

180,834 176,721

54,261 40,925

111,498 128,464

4,000 4,000


estimated.







2300 PARK ST., HOUSTON, TX 77019 Keymap: 492Z



Elec Meter: Indiv Cable Ready Fountain Amortization Houston ISD $1.186700


Water: RUBS Wine Storage Shuttle Route Type Harris County Flood Control $0.282700

Wiring: Copper Mini Blinds Gazbeo/Courtyard Assumable Port of Houston Authority $0.017160


Paving: Asphalt Origination Date Harris County Education Dept $0.006358






3 Mo Avg 24,694$



1%+app+legal

$1,134,376 ACCT NO: 0180580000001360

$6,263

Fixed

Yes

$4,538

9/1/2013

8/1/2023

5.22%

Yes

COLLECTIONS


PROPERTY HIGHLIGHTS

$-

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

Jan 2013

Feb 2013

Mar 2013

Apr 2013

May 2013

June 2013

July 2013

Aug 2013

Sept 2013

Oct 2013

Nov 2013

Dec 2013

The 2300 Park Apartments, is a two story, garden-style, apartment community located in the Montrose submarket of Houston,Texas. The asset was originally built in 1966. Residents enjoy ample amenities which include: mini-blinds, kitchen pantries, ceiling fans, a full appliance package and a beautifully landscaped courtyard. Currently there are no leasing concessions. The asset is covered under a blanket insurance policy that has better than full replacement coverage and a 2% deductible for wind, named storms and full liability. The property is in excellent condition. .


2300 PARK ST., HOUSTON, TX 77019 Unit Mix


1 2 Bed/1 Bath 1 746 746 $1,325 $1,325 $1.78

2 1 Bed/1 Bath 1 606 606 $1,195 $1,195 $1.97

3 2 Bed/1 Bath 1 746 746 $1,225 $1,225 $1.64

4 1 Bed/1 Bath 1 518 518 $1,195 $1,195 $2.31

5 1 Bed/1 Bath 1 518 518 $1,075 $1,075 $2.08

6 1 Bed/1 Bath 1 518 518 $1,225 $1,225 $2.37

7 1 Bed/1 Bath 1 518 518 $1,195 $1,195 $2.31

8 2 Bed/1 Bath 1 746 746 $1,225 $1,225 $1.64

9 1 Bed/1 Bath 1 606 606 $1,225 $1,225 $2.02

10 2 Bed/1 Bath 1 746 746 $1,450 $1,450 $1.94

11 2 Bed/1 Bath 1 746 746 $1,450 $1,450 $1.94

12 1 Bed/1 Bath 1 606 606 $1,175 $1,175 $1.94

13 1 Bed/1 Bath 1 746 746 $1,195 $1,195 $1.60

14 1 Bed/1 Bath 1 518 518 $1,195 $1,195 $2.31

15 1 Bed/1 Bath 1 518 518 $1,195 $1,195 $2.31

16 1 Bed/1 Bath 1 518 518 $1,195 $1,195 $2.31

17 1 Bed/1 Bath 1 518 518 $925 $925 $1.79

18 2 Bed/1 Bath 1 746 746 $1,495 $1,495 $2.00

19 1 Bed/1 Bath 1 606 606 $1,150 $1,150 $1.90

20 2 Bed/1 Bath 1 746 746 $1,450 $1,450 $1.94

20 627 12,533 $1,238 $24,760 $1.98


Renovated Interiors

Great Inner Loop Location

Gated Community w/off Street ParkingOnsite Laundry Facility


UNIT MIX JAN 2014


Ft.

Total Sq.

Feet

Average

Rent/Unit

Total

Rent

Average

Rent/ SF

35%

65%

1 Bed/1 Bath

2 Bed/1 Bath

% of Units by Type

3602 GARROTT HOUSTON, TX 77006





Interest Rate

Date Due


Yield Maintenance

Pitched











$527 per Unit $3,414 per Unit

Gas


Other ExpensesGeneral & Admin & MarketingRepairs & MaintenanceLabor CostsContract ServicesManagement Fees 3.75% $461 per Unit 3.75% $538 per Unit








Avg Unit Size 574 N/A 360 $20,478




Net Rentable Area 11,487 N/A 76608.36 Physical Occ (Dec-13) 100%




INCOME

286,461

286,461



(5,729)

(2,865) 1%


287,039

287,039

(5,729)

6,490 $324 / Unit / Yr

8,412


$245,738



$9,324 $466 per Unit






$2,247 $112 per Unit $2,247 $112 per Unit

11,389 11,389


$2,798 $140 per Unit $5,200 $260 per Unit

$24,493 $1,225 per Unit $10,000 $500 per Unit

$7,429 $371 per Unit $7,429 $371 per Unit

$3,231 $162 per Unit $3,231 $162 per Unit


73,088 122,290

172,650 164,750

47,165 36,624

69,088 116,290

4,000 6,000









3602 GARROTT HOUSTON, TX 77006 Keymap: 492W





Water: RUBS Pool Type Harris County Flood Control $0.282700









Avg Mo 2013 20,478$



1%+app+legal

$1,156,306 ACCT NO: 0370400000011360

$6,384

Fixed

Yes

$3,925

9/1/2013

8/1/2023

5.22%

Yes

COLLECTIONS


PROPERTY HIGHLIGHTS

$-

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

Jan 2013

Feb 2013

Mar 2013

Apr 2013

May 2013

June 2013

July 2013

Aug 2013

Sept 2013

Oct 2013

Nov 2013

Dec 2013

The 3602 Garrott Apartments, is a two story, garden-style, apartment community located in the Montrose submarket of Houston,Texas. The asset was originally built in 1963. Residents enjoy ample amenities which include: mini-blinds, kitchen pantries, ceiling fans, a full appliance package, swimming pool and a beautifully landscaped courtyard. Currently there are no leasing concessions. Per owner's operating statement, expenses are higher than normal due to the roof maintenance and exterior painting. The asset is covered under a blanket insurance policy that has better than full replacement coverage and a 2% deductible for wind, named storms and full liability. The property is in excellent condition.


3602 GARROTT HOUSTON, TX 77006 Unit Mix


1 Bed/1 Bath 1 563 563 $1,195 $1,195 $2.12

1 Bed/1 Bath 1 563 563 $1,125 $1,125 $2.00

1 Bed/1 Bath 1 563 563 $995 $995 $1.77

1 Bed/1 Bath 1 563 563 $1,095 $1,095 $1.94

1 Bed/1 Bath 1 630 630 $1,250 $1,250 $1.98

1 Bed/1 Bath 1 563 563 $1,195 $1,195 $2.12

1 Bed/1 Bath 1 563 563 $995 $995 $1.77

1 Bed/1 Bath 1 563 563 $1,100 $1,100 $1.95

1 Bed/1 Bath 1 563 563 $1,095 $1,095 $1.941 Bed/1 Bath 1 563 563 $1,195 $1,195 $2.12

1 Bed/1 Bath 1 563 563 $1,275 $1,275 $2.26

1 Bed/1 Bath 1 563 563 $1,050 $1,050 $1.871 Bed/1 Bath 1 563 563 $1,125 $1,125 $2.001 Bed/1 Bath 1 563 563 $1,095 $1,095 $1.941 Bed/1 Bath 1 723 723 $1,250 $1,250 $1.731 Bed/1 Bath 1 563 563 $1,225 $1,225 $2.181 Bed/1 Bath 1 563 563 $1,100 $1,100 $1.951 Bed/1 Bath 1 563 563 $1,100 $1,100 $1.95

1 Bed/1 Bath 1 563 563 $1,250 $1,250 $2.221 Bed/1 Bath 1 563 563 $1,025 $1,025 $1.82

20 574 11,487 $1,137 $22,735 $1.98

Apartment Features Community FeaturesFull Appliance Package Great Inner Loop Location



Sprinkler System

Swimming Pool

UNIT MIX JAN 2014


Ft.

Total Sq.

Feet

Average

Rent/Unit

Total

Rent

Average

Rent/ SF

18

1 1

1 Bed/1 Bath-563

1 Bed/1 Bath-630

1 Bed/1 Bath-723

# Units by Size

3618-3620 GARROTT ST., HOUSTON, TX 77006




Monthly P & I

Interest Rate

Date Due


Yield Maintenance

Pitched












Gas










Avg Unit Size 482 N/A 360 $13,429








INCOME

192,465

192,465



(3,849)

(1,925) 1%


190,973

190,973

(3,849)

5,019 $314 / Unit / Yr

3,113


$161,148



$6,761 $423 per Unit






8,562 8,562


$2,305 $144 per Unit $4,160 $260 per Unit

$2,087 $130 per Unit $2,087 $130 per Unit


$11,502 $719 per Unit Higher than normal $8,000 $500 per Unit

58,278 80,222

3,200 4,800

$1,317 $82 per Unit $1,317 $82 per Unit


61,478 85,022

99,670 105,952

27,110 26,582


estimated.







3618-3620 GARROTT ST., HOUSTON, TX 77006 Keymap: 493S



Elec Meter: Indiv Cable Ready Shuttle Route Amortization(months) Houston ISD $1.186700

A/C Type: Wall Unit Ceiling Fans School Bus Pick-up P & I Harris County $0.414550

Water: RUBS Mini Blinds Type Harris County Flood Control $0.282700

Wiring: Copper Assumable Port of Houston Authority $0.017160








Avg Mo 2013 13,429$



1%+app+legal

$809,526 ACCT NO: 0370400000007360

$4,570

Fixed

Yes

$2,778

9/1/2013

8/1/2023

5.42%

Yes

COLLECTIONS


PROPERTY HIGHLIGHTS

$-

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

$18,000

Jan 2013

Feb 2013

Mar 2013

Apr 2013

May 2013

June 2013

July 2013

Aug 2013

Sept 2013

Oct 2013

Nov 2013

Dec 2013

The 3402 Garrott Apartments, is a two story, garden-style, apartment community located in the Montrose submarket of Houston,Texas. The asset was originally built in 1960. Residents enjoy ample amenities which include: mini-blinds, ceiling fans and a beautifully landscaped courtyard with a water feature. Currently there are no leasing concessions. The asset is covered under a blanket insurance policy that has better than full replacement coverage and a 2% deductible for wind, named storms and full liability. The property is in excellent condition. .


3618-3620 GARROTT ST., HOUSTON, TX 77006 Unit Mix


1 1 Bed/1 Bath 1 534 534 $995 $995 $1.86

2 1 Bed/1 Bath 1 482 482 $975 $975 $2.02

3 1 Bed/1 Bath 1 482 482 $785 $785 $1.63

4 1 Bed/1 Bath 1 443 443 $875 $875 $1.98

5 1 Bed/1 Bath 1 534 534 $1,025 $1,025 $1.92

6 1 Bed/1 Bath 1 482 482 $785 $785 $1.63

7 1 Bed/1 Bath 1 482 482 $950 $950 $1.97

8 1 Bed/1 Bath 1 443 443 $1,025 $1,025 $2.32

9 1 Bed/1 Bath 1 482 482 $1,000 $1,000 $2.0710 1 Bed/1 Bath 1 482 482 $995 $995 $2.06

11 1 Bed/1 Bath 1 443 443 $895 $895 $2.02

12 1 Bed/1 Bath 1 534 534 $1,075 $1,075 $2.0113 1 Bed/1 Bath 1 482 482 $1,050 $1,050 $2.1814 1 Bed/1 Bath 1 482 482 $1,050 $1,050 $2.1815 1 Bed/1 Bath 1 443 443 $975 $975 $2.2016 1 Bed/1 Bath 1 482 482 $1,025 $1,025 $2.13

16 482 7,711 $968 $15,480 $2.01

Apartment Features Community FeaturesRenovated Interiors Great Inner Loop Location

Gated Community w/off Street Parking


Sprinkler System

Water Feature

UNIT MIX JAN 2014


Ft.

Total Sq.

Feet

Average

Rent/Unit

Total

Rent

Average

Rent/ SF

3

9

4

1 Bed/1 Bath-534

1 Bed/1 Bath-482

1 Bed/1 Bath-443

# Units by Size

420 WEST ALABAMA., HOUSTON, TX 77006





Interest Rate

Date Due


Yield Maintenance

Flat









Fixed Expenses2013 Tax Rate & Future Assessment 2013 Tax Rate & Future Assessment



Gas




Note: $7377.76 of CapEx have been removed from the Repairs & Maintenance section of Expenses






Avg Unit Size 591 N/A 360 $16,550








INCOME

211,113

211,113



(4,222)

(2,111) 1%


209,280

209,280

(4,222)

5,034 $315 / Unit / Yr

3,689


$198,605



$6,958 $435 per Unit






$2,112 $132 per Unit $2,112 $132 per Unit

$9,237 $577 per Unit $8,000 $500 per Unit

9,567 9,567


$1,710 $107 per Unit $4,160 $260 per Unit


27,496 29,110

$5,943 $371 per Unit $5,943 $371 per Unit

$3,159 $197 per Unit $3,159 $197 per Unit

127,753 117,831

67,652 88,249

3,200 3,200

70,852 91,449









420 WEST ALABAMA., HOUSTON, TX 77006 Keymap: 493S





Water: RUBS Mini Blinds Covered Parking Type Harris County Flood Control $0.282700

Wiring: Copper Assumable Port of Houston Authority $0.017160








3 Mo Avg 16,550$



1%+app+legal

$914,005 ACCT NO: 0370360000010360

$5,052

Fixed

Yes

$2,833

9/1/2013

8/1/2023

5.22%

Yes

COLLECTIONS


PROPERTY HIGHLIGHTS

$-

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

$18,000

$20,000

Jan 2013

Feb 2013

Mar 2013

Apr 2013

May 2013

June 2013

July 2013

Aug 2013

Sept 2013

Oct 2013

Nov 2013

Dec 2013

The 420 W Alabama Apartments, is a two story, garden-style, apartment community located in the Montrose submarket of Houston,Texas. The asset was originally built in 1968. Residents enjoy ample amenities which include: mini-blinds, kitchen pantries, ceiling fans, a full appliance package and a beautifully landscaped courtyard with a water feature. Currently there are no leasing concessions. The asset is covered under a blanket insurance policy that has better than full replacement coverage and a 2% deductible for wind, named storms and full liability. The property is in excellent condition. .


420 WEST ALABAMA., HOUSTON, TX 77006 Unit Mix


1 1 Bed/1 Bath 1 480 480 $1,195 $1,195 $2.49

2 1 Bed/1 Bath 1 670 670 $1,025 $1,025 $1.53

3 1 Bed/1 Bath 1 540 540 $1,195 $1,195 $2.21

4 1 Bed/1 Bath 1 540 540 $1,195 $1,195 $2.21

5 1 Bed/1 Bath 1 540 540 $850 $850 $1.57

6 1 Bed/1 Bath 1 670 670 $775 $775 $1.16

7 1 Bed/1 Bath 1 480 480 $1,035 $1,035 $2.16

8 1 Bed/1 Bath 1 810 810 $1,325 $1,325 $1.64

9 1 Bed/1 Bath 1 480 480 $1,175 $1,175 $2.4510 1 Bed/1 Bath 1 670 670 $1,095 $1,095 $1.63

11 1 Bed/1 Bath 1 540 540 $800 $800 $1.48

12 1 Bed/1 Bath 1 540 540 $895 $895 $1.6613 1 Bed/1 Bath 1 540 540 $825 $825 $1.5314 1 Bed/1 Bath 1 670 670 $995 $995 $1.4915 1 Bed/1 Bath 1 480 480 $1,125 $1,125 $2.3416 1 Bed/1 Bath 1 810 810 $1,295 $1,295 $1.60

16 591 9,457 $1,050 $16,800 $1.78

Apartment Features Community Features

Full Appliance Package Great Inner Loop Location

Newly Renovated Interiors Gated Community w/Covered Parking


Sprinkler System

Water Feature

UNIT MIX JAN 2014


Ft.

Total Sq.

Feet

Average

Rent/Unit

Total

Rent

Average

Rent/ SF

4

4

6

2

1 Bed/1 Bath-480

1 Bed/1 Bath-670

1 Bed/1 Bath-540

1 Bed/1 Bath-810

# Units by Size

F6/MIDTOWN PORTFOLIO AREA INFORMATION

Houston Economy

Though Houston's energy industry has helped the city stave off the effects of the national recession, the city's economy has been enhanced by diversification resulting in 53% independence from the energy industry, which allows for a more robust economy and supports further commercial development. The economic diversification includes growth in high technology industries (computer and aerospace), medical research, health care, social assistance, and professional services. With its favorable incentives and accommodating infrastructure, Houston has quickly become a preferred international hub. The Port of Houston is the world's sixth largest port and ranks first in the United States in terms of international tonnage and second in total tonnage. Houston's infrastructure is also strengthened by three airports, which form the fourth largest airport system in the national and sixth largest in the world, as well as a massive trucking and rail system. Numerous Fortune 500 companies, multi-nationals, and domestic companies maintain operations here. Ranking third in the nation, there are 21 Fortune 500 companies that are headquartered in Houston, and more than half of the world's largest 100 non-US based corporations have operations in Houston. Houston is a major corporate center and its geographic advantage, incentive, stable economy, and growing workforce continue to attract corporations to relocate and expand here. Houston's economic base continues to diversify and decrease it dependence on energy. In fact, non-energy sectors have accounted for 87% of net job growth since 1987, further reducing Houston's vulnerability to downturns in the energy industry. With is rapidly expanding population and solid economic base, the city is primed to benefit from its growing international reputation as a global destination of choice for residents, tourists, and businesses alike. The Texas Workforce Commission estimates more than 2.5 million jobs exist in the Houston MSA. The workforce is characterized as young, educated, and highly skilled, which are attractive to businesses and support future job growth. Houston has the lowest median age, 32.8, of the nation's 10 largest metropolitan areas. Currently , more than 1/4th of all adult Houstonians have completed college, compared to 1/5th of the U.S. adult population. Houston has the lowest cost of living among the nation's 23 largest metropolitan area, a key contributor to Houston's ability to continually rank among the nation's most desirable cities for companies looking to relocate or expand their operations.

STATE OF TEXAS ECONOMY Job growth, sales tax collections – both from business and consumer purchases – as well as automobile sales, signal that the Texas economy has emerged from the recent recession. Another indicator that the state’s economy has been comparatively healthy was the U.S. Bureau of the Census report that Texas added more people (nearly 4.3 million) than any other state between the census counts of 2000 and 2010. Entering 2011, more than half the jobs shed by employers during Texas’ shorter recession have already been recovered as our economy recovers more quickly than the U.S. as a whole. Nationally, only 13.4 percent of recession-hit jobs had been recovered ending 2010. Texas and the nation returned to economic growth in 2010, with the nation increasing its GDP by 2.8 percent and Texas increasing its GSP by 3.4 percent. Jobs •Texas’ December 2010 unemployment rate was 8.3 percent, up from 8.2 percent in November. •Texas total nonfarm employment increased by 20,000 jobs from November to December. Between December 2009 and December 2010, Texas gained 230,800 jobs. •The U.S. gained 36,000 total nonfarm jobs in January 2011. •The U.S. unemployment rate was 9.0 percent in January 2011, a 0.4 percent decrease from December. •The Texas unemployment rate has been at or below the national rate for 47 consecutive months. Housing •Thus far, Texas has weathered the national real estate crunch without significant damage to property values. Sales and construction activity dropped to pre-2007 levels but began to shows signs of recovery in 2010. •A total of 4,170 building permits for single-family homes were issued in December 2010, 887 fewer than a year ago. In the 12 months ending in December 2010, 62,980 permits were issued, 1 percent less than one year ago. •The number of multi-family building permits issued rose from 989 in December 2009 to 1,200 in December 2010. During the 12 months ending in December 2010, 18,716 permits were issued, 12 percent more than one year ago. •In December 2010, sales of existing single-family homes increased by 16 percent from the previous month, to a total of 15,752. December 2010 home sales were 3 percent lower than in December 2009. •In Texas, the median price for existing single-family homes increased by 4.1 percent from December 2009 to December 2010. •Texas experienced 14.897 foreclosure filings in January 2011. Consumer Confidence Index •U.S. consumer confidence increased by 14 percent from December 2010 to January 2011, rising to 60.6. Consumer Confidence now stands 7 percent higher than one year ago. •The Texas region’s consumer confidence index increased from 69.5 in December 2010 to 90.8 in January 2011, and is now up 26 percent from its level one year ago. Oil and Natural Gas •Natural gas and oil production tax collections combined are 70 percent higher for the first five months of fiscal year 2011 compared to the same period in 2010. •By contrast, fiscal 2010 oil and natural gas production tax collections combined were 24 percent lower than collections in 2009. •After reaching a 2008 summer high closing price of $145.29 to a low of $33.98 during February 2009, crude oil futures reached a settled price of $86.73 on Feb. 10, 2011. •Similarly, natural gas futures prices have followed a similar path reaching a summer 2008 high of $13.58 and then falling to a Sept. 3, 2009 low of $2.51. Prices recently settled at $3.99 on Feb. 10, 2011. Taxes •Texas sales tax receipts for January 2011 were 10.4 percent higher than for January 2010. •For fiscal 2010, state sales tax receipts were down 6.6 percent from fiscal 2009. •Motor vehicle sales tax collections for January 2011 were 19.6 percent higher than for January 2010. •Nationally, leases accounted for 28.1 percent of new vehicle sales in November 2010, an increase of 15.6 percent from November 2009. Source: Texas Ahead, February 11, 2011 - Texas Comptroller's Office

F6/Midtown Portfolio Area Information

2900 West Dallas, is the newest project claiming land in

Houston's Inner Loop. Developed by Marvy Finger of the Finger

Companies, this six-story, 435 unit, luxury apartment development

that cost approximately $85 million to construct has upscale

amenities from tile entries to red oak wood flooring. Reportedly,

white collar job growth in the area has boosted the demand for

luxury rentals. Residents began moving into the upscale complex

in November and when its all complete there will be four pools,

beautifully landscaped courtyards, a two-story fitness center, a

marble staircase and the list goes on. A 755 sq.ft. one bedroom

unit starts at $1700 and a 1,551 sq.ft. two bedroom starts at $2600.

The property is currently 35% pre-leased and tenants range from

legal and energy industry professionals to retirees. Source: Houston Chronicle

AREA DEVELOPMENT

AREA INFORMATION

Montrose, a central Houston community established in 1911, is a

demographically diverse neighborhood with renovated mansions,

bungalows with wide porches, and cottages located along tree-lined

boulevards. Montrose is a major cultural hub. The area was named as

one of the "ten great neighborhoods in America" by the American

Planning Association, in 2009. Because of the inclusion of Montrose, the

Houston Heights, and the Rice University area, it is nicknamed "hipstrict",

referring to its progressive and urban ethic Montrose houses five of the

city's 15 designated historic districts. Houston Mayor, Anise Parker, a

longtime resident of Montrose, started her political career by

representing Montrose as an at-large city council member. Development

over the years has maintained, if not added to, the community’s

distinctive personality which encompasses an interesting selection of

architecture. Whether its antique shopping in the West Gray/River Oaks

shopping areas, enjoying art, science or history at one of the various

museums or simply hanging with friends at a local restaurant or bar,

there is always something to see and do in the Montrose area.

F6/MIDTOWN PORTFOLIO RENT COMPS

1 2212 Dunlavy

2212 Dunlavy

2 2020 Huldy

2020 Huldy

3 1507 California

1507 California

4 Carriage Square

2320 McCue

5 Marquee Uptown

2306 McCue

Totals/Averages of Rent Comps 1963 98% 838 $1,220 $1.46

Sub-Market Averages(Montrose/Memorial Heights) 87% 5,115 948 $1,361 $1.45

Houston Market Avgs 91% 591,814 867 $826 $0.96

420 West Alabama 1968

3618-3620 Garrott 1960 88% 16 482 $955

3602 Garrott 1963 100% 20 574 $1,137

$1,408

2300 Park St 1966 97% 20 627 $1,238

4115 Drake 1962 100% 16 638 $1,039

1960 100% 10 495

2322 Richton 1962 95%

1219 Banks 1962 100% 7 821

1903 Portsmouth 1964 97% 29 835

$1,518

$879 $1.77

$1.69

$1,350

$1,396

Totals/Averages of Subject Properties 1962 97% 640 $1,128 $1.79

$1.48

1901 Whitney 1952 396 $865

1966 91% 58 1026

3402 Garrott 1968

1916-1926 Norfolk 1961/1965 100% 30 994

4414 Yupon

100%

$1.98

$1.63

$1.98

$1.85

$2.19

88% 15 615 $1,086 $1.76

16 591 $1,047 $1.77

$1.98

$1.70

$1.17

20 612 $1,132

100% 9

1960 100% 40 902 $1,353 $1.50

1965 100% 18 725 $1,125 $1.55

RENT COMPARABLES (January 2014 O'Connor & Associates)

Property Name Yr Blt Occ #Units Avg SF Avg Rent P/SF

1963 100% 12 961 $1,053 $1.10

1960 100% 20 575 $950 $1.65

F6/MIDTOWN PORTFOLIO SALES COMPS

1 Branard McDuffie

2010 Branard

2 1410 Hyde Park

1410 Hyde Park

3 Gramercy Place

242 Portland

4 4722 Aftonshire

4722 Aftonshire

5 4105 Garrott

4105 Garrott

Totals/Averages of Sales Comps $2,059,000 15,898 $102,054 $133.56 1956 20

Market 141,144 N/A N/A 1962 208

16

SALES COMPARABLES

Market 9,457 N/A N/A 1968

1963 20

Market 7,711 N/A N/A 1960 16

N/A N/A 1962 16

1966

Market

24,222 N/A N/A

11,487 N/A N/A

1964 29

Market 12,236 N/A N/A 1962 20

2012,533 N/A N/A

5,748 N/A N/A 1962 7

29,807 N/A N/A 1961/1965 30

N/A 1968 15

Market 4,950 N/A N/A 1960 10

N/A

3602 Garrott

3618-3620 Garrott

420 West Alabama

Market

Market

Market

3402 Garrott

4414 Yupon

1219 Banks

1916-1926 Norfolk

1903 Portsmouth

2322 Richton

2300 Park St Market

Market

Market

4115 Drake

Totals/Avg of Subjects

10,201

9,232

6/13 $730,000 5,100 $121,667 $143.14 1960 6

314/13

Pending $3,850,000 30,000 $104,054 $128.33 1976 37

173/13 $1,450,000 14,144 $85,294 $102.52 1960

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

25,961 $116,129 $138.67 1935$3,600,000

8

1901 Whitney Market 3,560 N/A N/A 1952 9

12/12 $665,000 4,286 $83,125 $155.14 1950

F6/MIDTOWN PORTFOLIO DEMOGRAPHICS

1 Mile Radius

3 Mile Radius

5 Mile Radius

2011 Estimated Population 20,919 77,820 192,2952016 Projected Population 23,106 85,913 212,0612010 Census Population 20,044 74,580 184,3872000 Census Population 16,959 64,725 167,957

Projected Annual Growth 2011 to 2016 2.1% 2.1% 2.1%Historical Annual Growth 2000 to 2011 1.8% 1.6% 1.1%

2011 Median Age 37 38.2 36.2

2011 Estimated Households 10,572 38,520 89,5562016 Projected Households 11,596 42,244 98,2122010 Census Households 10,128 36,900 85,7872000 Census Households 8,720 32,612 79,807

Projected Annual Growth 2011 to 2016 1.9% 1.9% 1.9%Historical Annual Growth 2000 to 2011 1.6% 1.4% 0.9%

2011 Estimated White 81.4% 79.4% 72.2%2011 Estimated Black or African American 3.7% 4.2% 6.0%2011 Estimated Asian or Pacific Islander 10.3% 10.4% 10.1%2011 Estimated American Indian or Native Alaskan 0.2% 0.3% 0.6%2011 Estimated Other Races 4.4% 5.7% 11.1%

2011 Estimated Hispanic 12.2% 15.5% 27.5%

2011 Estimated Average Household Income $144,592 $145,591 $125,3432011 Estimated Median Household Income $106,127 $105,251 $89,2972011 Estimated Per Capita Income $73,030 $72,319 $58,666

2011 Estimated Elementary (Grade Level 0 to 8) 1.8% 2.3% 8.0%2011 Estimated Some High School (Grade Level 9 to 11) 2.0% 2.3% 4.3%2011 Estimated High School Graduate 7.9% 7.9% 9.8%2011 Estimated Some College 12.8% 13.3% 14.3%2011 Estimated Associates Degree Only 4.4% 4.0% 4.0%2011 Estimated Bachelors Degree Only 39.4% 37.2% 32.4%2011 Estimated Graduate Degree 31.7% 33.1% 27.3%

2011 Estimated Total Businesses 2,174 10,113 20,2222011 Estimated Total Employees 27,690 137,002 248,3552011 Estimated Employee Population per Business 12.7 13.5 12.32011 Estimated Residential Population per Business 9.6 7.7 9.5

INC

OM

EE

DU

CA

TIO

N

(AG

E 2

5+

)B

US

INE

SS

HO

US

EH

OL

DS

RA

CE

AN

D E

TH

NIC

ITY

P

OP

UL

AT

ION

72%

3%

9%

4% 12%

White Black Asian Other Hispanic

$144,592

$72,073

0

20000

40000

60000

80000

100000

120000

140000

160000

Subject Houston

87.8%

12.2%

Non-Hispanic

Hispanic

Assumption

N/A

Disclaimer: The information contained in this Memorandum reflects material from sources deemed to be reliable, including data such as operating statements, rent rolls, etc. However, we (KET Enterprises Incorporated, any of the Owners or officers, directors, employees, agents or representatives of any such entities) have not verified its accuracy and make no guarantee or representation about it. It is submitted subject to the possibility of errors, omissions, change of rental or other conditions. We include projections, opinions, assumptions or estimates for example only, and they may not represent current or future performance of the property. We make no representations or warranties, expressed or implied, as to the validity, accuracy or completeness of the information provided or to be provided, and nothing herein shall be deemed to constitute a representation, warranty or promise by any such parties as to the future performance of the Property or any other matters set forth herein. You and your tax and legal advisors should verify the information and rely on his accountants or attorneys for legal and tax advice. Rates of return vary daily. No representations are made concerning environmental issues, if any.

FOR MORE INFORMATION ON THIS PROPERTY PLEASE CALL:

TOM WILKINSON, Broker (713) 355-4646 xt 102 [email protected] or MARK KALIL, Broker (713) 799-8700 [email protected]

EXCLUSIVELY PRESENTED BY

KET ENTERPRISES INCORPORATED 4295 San Felipe, Suite 355

Houston, TX 77027

Tel: (713)355-4646 Fax: (713)355-4331

www.ketent.com

and

MARK KALIL & ASSOCIATES, INC. 3701 Kirby, Suite 1000 | Houston, TX 77098

Houston, TX 77030

Tel: (713)799-8700 Fax: (713)799-8703

www.markkalil.com

Documents

PREPARED BY: KET Enterprises Incorporated Mark Kalil