“Unique & contemporary luxury 20 unit townhome

development in thriv ingEast Vi l lage Dallas”

OFFERINGMEMORANDUM

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LISTED BY

DANNY MCQUAIDSenior Associate, Multifamily

+1 (214) 932-1284danny.mcquaid@matthews.comLicense No. 673000 (TX)

KYLE MATTHEWSChairman & CEO

+1 (310) 919-5757kyle.matthews@matthews.comLicense No. 9005919 (TX)

This Offering Memorandum contains select information pertaining to the business and affairs of Sanctuary 1518 at 1518 N Carroll Ave, Dallas, TX(“Property”). It has been prepared by Matthews Retail

Advisors. This Offering Memorandum may not be all-inclusive or contain all of the information a prospectivepurchaser may desire. The information contained in this Offering Memorandum is confidential and

furnished solely for the purpose of a review by a prospectivepurchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller

or Matthews Retail Advisors. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers,

employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents and no legal liability is assumed or

shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own

due diligence.

By acknowledging your receipt of this Offering Memorandum for the Property, you agree:

1. The Offering Memorandum and its contents are confidential;

2. You will hold it and treat it in the strictest of confidence; and

3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller.

Owner and Matthews Retail Advisors expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any

person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and

delivered. If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property

including this Offering Memorandum.A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the

sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims

against Seller or Matthews Retail Advisors or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action

relating to this solicitation process or the marketing or sale of the Property.

This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date

this Offering Memorandum.

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04

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TABLE OF CONTENTS

Property Overview

Area Overview

Financial Overview

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0 1PROPERTY OVERVIEW

SANCTUARY1518D A L L A S , T E X A S

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THE OPPORTUNITY Matthews Real Estate Investment Services™ is pleased to present the Sanctuary 1518 Townhomes, a 20-Unit Class A Townhome-Style Multifamily asset. Built in 2019, Sanctuary 1518 consists of 20 Units across six buildings, and is ideally located in one of DFW’s most desirable and highest barrier to entry submarket’s, East Village. Qualif ied investors are offered the rare opportunity to acquire a new construction multifamily asset in one of the fastest growing MSA’s in the country.

PROPERTY DESCRIPTION• Units: 20 – Townhome Style

• Year Built: 2019

• Net Rentable SF: 29,706

• Proximate to Dallas-Fort Worth’s Most Influential and Dynamic Economic Drivers

• High Barrier to Entry Submarket

• Exceptional Property Demographics

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CEILING HEIGHT

• First Floor: 8.5’

• Second Floor: 10’

• Third Floor: Vaulted in Bedrooms

STAIRS

• First Floor: Red Oak

• Second Floor: Carpet

FLOORS

• First Floor: Polished Concrete

• Second Floor: 5” Red Oak Hardwood

• Third Floor: Carpet

• Bathrooms: Porcelain Tile

KITCHEN COUNTERTOPS

• 2cm Arctic White quartz

KITCHEN BACKSPLASH

• 2x8 Subway tile in a stacked pattern

BATH COUNTERTOPS

• 2cm Arctic White quartz

SHOWER DOORS

• Frameless tempered glass

CABINETS

• Drawer Banks on Lower Cabinets for Easier Access to Pots/Pans/etc.

EXTERIOR PAINT

• One color exterior acrylic paint

INTERIOR PAINT

• Enamel Paint on Walls & Trim

INTERIOR TRIM

• MDF base and door trim/MDF Closet shelves

WINDOWS

• White vinyl insulated to meet energy code

LIGHTING

• pre-wired for ceiling fans, entry pendant & island pendants

EXTERIOR

• Brick, stucco and cement f iber board siding

• Oversized f ront yards fenced and gated (on select units)

FEATURES

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LANDSCAPING

• Fully Landscaped and Irrigated Front Yards

FOUNDATION

• Post tension slab on grade; engineered per soils reports

EXTERIOR DOORS

• Masonite f iberglass door with light kit

ROOF

• 25 Year composition shingle; black

GARAGE DOOR

• 16x7 steel door with one Liftmaster opener and two controls with multi button - no return, programmable remotes

FENCE

• Cedar Board on Board with Top Cap & 4’ iron Fencing at Yards

ACCESS CONTROLLED

• Controlled Access Gates w/ Fob Openers

COMMUNITY AMENITIES

• Firepit with Seating Area and Dog Park

SMART HOME SECURITY SYSTEM

• Vivint Smart Home technology including: Video doorbell, door sensors, smart thermostats, 7”control panel, keyless entry, 2 automated light switches.

• Upgradeable to add video connection

INSULATION

• R13 f iberglass batt between units with 2 layers of 5/8’’ gyp with acoustical caulk for sound attenuation / R38 Batt of ceilings / R19 batt at exterior walls

HVAC

• Carrier 15 Seer dual zoned system with dampers

ELECTRICAL

• All wiring on the house side of the meter to be copper and comply with local electrical codes

HOT WATER

• Tankless water heater

• Water and sewer bill back

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0 2AREAOVERVIEW

SANCTUARY1518D A L L A S , T E X A S

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DALLAS-FORT WORTH METROPLEX As the largest metropolitan area in the South and the fourth largest in the U.S., the Dallas-Fort Worth Metroplex is the economic and cultural hub of Texas. Companies are investing in the region, recognizing it as a hub of creativity, ingenuity and high-tech innovation.

Dallas has become an essential part of growth strategies for companies and is acknowledged as one of the top 10 metropolitan areas in the U.S. for high-tech workers with over 230,000 employed workers across a variety of industries.

The cities of Dallas and Fort Worth comprise the two largest urban centers of the continuously expanding Metroplex, respectively.

On the eastern side of the metro area, Dallas is the larger of the two cities with an economy based on business management and operations. The Dallas economy is expected to grow over the next couple of decades making it the perfect time to not only invest in Dallas real estate, but also to relocate. It combines clashing images of the city skyline and cowboy vibes. Yet, the city of Dallas describes itself best with the motto: “Big Things Happen Here.”

FIFTH LARGEST CITY IN THE U.S.- STAR TELEGRAM ARCHIVES, 2018

24.9 MILLION ANNUAL VISITORS- VISITDALLAS.COM, 2018

BEST PLACE FOR BUSINESS AND CAREERS IN TEXAS- FORBES, 2015

DALLAS, TEXASDallas is a city where big ideas meet big opportunity. The city revolves around a bustling downtown area that expands through an assortment of neighborhoods and commercial centers, supported by a network of freeways that exceeds almost any other city.

It boasts the largest urban arts district in the nation; where you’d be more likely to come across a world-class exhibit than a broken pair of chaps. Its past and present is rich in culture, an All-American city that was built on legends. The central core of Dallas has experienced a

steady and significant growth that speaks to its highly diversified economy. It has become a hub for real estate and business, establishing itself as one of the largest concentrations of corporate headquarters for publicly traded companies.

POPULATION

1.34MMEDIAN AGE

32.4MEDIAN HOUSEHOLD INCOME

$50,627# OF EMPLOYEES

513K

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KNOX/HENDERSON The Knox-Henderson neighborhood is a pedestrian-f riendly area f illed with shops, bars, and eateries that radiate out in all directions, the neighborhood manages to maintain a cozy vibe despite its central Dallas location. East Dallas’ popular Henderson Avenue corridor is headed for a major makeover with a new mixed-use project.

LOWER GREENVILLE Lower Greenville is a major entertainment district in Dallas containing many popular bars, restaurants, boutique stores and live music venues. Thanks to a recent face-lift, Lower Greenville a has evolved f rom being to a casually hip ‘hood boasting an ever-growing crop of eclectic shops, laid-back watering holes, and delicious dining gems.

LAKEWOOD Nestled beside the shores of White Rock Lake, the neighborhood of Lakewood is an idyllic place for families and professionals alike. Boasting year-wide seasonal exhibits, including a huge autumn festival that features life-sized fairy tales houses made out of pumpkins, this neighborhood has a laid-back atmosphere, along with beautiful green spaces and parks.

EAST DALLAS East Dallas, also referred to as the Lake & Garden District, is an expansive area of numerous communities and neighborhoods in Dallas, Texas. White Rock Lake, located in the center of East Dallas, is considered “the crown jewel of the Dallas parks system”. The lake, along with the Dallas Arboretum and Botanical Garden located on the east side of the lake, has strongly influenced and shaped the identity of the East Dallas area.

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WHITE ROCK LAKE 1,015-acre city lake located approximately 5 miles northeast of downtown Dallas, offering a variety of natural areas and wildlife in an urban setting.

GRANADA THEATRE A Dallas staple, Granada Theatre has been entertaining audiences since 1946. The venue has amassed several awards along the way including “Best Live Music Venue”.

KATY TRAIL 3.5-mile premier urban trail, linking the business district with recreational opportunities, shopping, and residential neighborhoods.

DALLAS ARBORETUM AND BOTANICAL GARDEN One of the most beautiful outdoor attractions in Dallas, features 66-acres of gardens that showcase flora collections in a serene setting.

POPULATION 1-MILE 3-MILE 5-MILE

2024 Projection 37,761 206,822 414,561

2019 Estimate 35,194 193,820 390,167

2010 Census 29,033 162,310 338,772

Growth 2019-2024 7.29% 6.71% 6.25%

Growth 2010-2019 21.22% 19.41% 15.17%

HOUSEHOLDS 1-MILE 3-MILE 5-MILE

2024 Projection 17,302 99,595 183,203

2019 Estimate 16,044 92,605 171,665

2010 Census 12,767 74,984 145,988

Growth 2019-2024 7.84% 7.55% 6.72%

Growth 2010-2019 25.67% 23.50% 17.59%INCOME 1-MILE 3-MILE 5-MILE

2019 Avg. Household Income $76,760 $117,943 $112,836

PROPERTY DEMOGRAPHICS

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0 3FINANCIALOVERVIEW

SANCTUARY1518D A L L A S , T E X A S

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1518 N CARROLL AVEDALLAS, TX 75204

Pricing: TBD By Market

Number of Units: 20

Year Built: 2019

APN: 00000118222000000

Gross Sq. Ft.: 29,706

Average S.F. Per Unit: 1,485

Lot Size (Acres): 0.68

Density: 29

TOTALUNITS

UNIT MIX

UNITMIX %

AVG. SQUARE FEET

AVG. RENT P.S.F

CURRENT MARKET

AVG RENT MONTHLY RENT RENT RENT P.S.F. MONTHLY

RENT

1 2+2.5A 5% 1,427 $1.83 $2,613 $2,613 $2,718 $1.90 $2,718

4 2+2.5B 20% 1,436 $1.78 $2,558 $10,230 $2,660 $1.85 $10,639

1 2+2.5C 5% 1,426 $1.76 $2,507 $2,507 $2,607 $1.83 $2,607

8 2+2.5D 40% 1,564 $1.89 $2,963 $23,700 $3,081 $1.97 $24,648

1 2+2.5E 5% 1,427 $2.00 $2,850 $2,850 $2,964 $2.08 $2,964

4 2+2.5F 20% 1,436 $1.83 $2,633 $10,530 $2,738 $1.91 $10,951

1 2+2.5G 5% 1,426 $1.93 $2,750 $2,750 $2,860 $2.01 $2,860

Scheduled Monthly Rent: $55,180 $57,387

Scheduled Yearly Rent: $662,160 $688,646

INVESTMENT SUMMARY

UNIT MIX

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CURRENT MARKET

Scheduled Gross Income: $662,160 $688,646 4% Upside

Less Vacancy Reserve: $33,108 5.0% $34,432 5.0%

RUBS Income: $19,380 $19,380

Other Income (Fee's): $25,750 $25,750

Gross Operating Income: $674,182 $699,344

Expenses: $248,866 37.6% $250,124 36.32% *

Net Operating Income: $425,316 $449,220

PRO FORMA ESTIMATES

% OF SGI CURRENT PER UNIT MARKET PER UNIT % OF SGI

Property Taxes 21.24% $143,177 $7,159 $143,177 $7,159 20.8%

Off-Site Management 5.0% x GOI 5.00% $33,709 $1,685 $34,967 $1,748 5.1%

Insurance $0.75 x GSF 3.30% $22,280 $1,114 $22,280 $1,114 3.2%

Reserves $200 x Units 0.59% $4,000 $200 $4,000 $200 0.6%

Advertising $500 x Units 1.48% $10,000 $500 $10,000 $500 1.5%

Repairs & Maintenance $400 x Units 1.19% $8,000 $400 $8,000 $400 1.2%

Make Ready $100 x Units 0.30% $2,000 $100 $2,000 $100 0.3%

Landscaping $125 x Units 0.37% $2,500 $125 $2,500 $125 0.4%

Pest Control $25 x Units 0.07% $500 $25 $500 $25 0.1%

Utilities $1,035 x Units 3.07% $20,700 $1,035 $20,700 $1,035 3.0%

General Administration $100 x Units 0.30% $2,000 $100 $2,000 $100 0.3%

Total Expenses 36.91% $248,866 $12,443 $250,124 $12,506 36.3%

CURRENT PER UNIT % OF SGI

Non-controllable expenses: Taxes, Ins., Reserves: $169,457 $8,473 25.6%

Total Expense without Taxes $105,689 $5,284 15.96%

ANNUAL OPERATING SUMMARY

PRO FORMA ANNUAL OPERATING EXPENSES

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# UNIT MIX RENT S.F RENT/S.F. MARKET RENT MKT RENT/S.F.

1 101 2+2.5A $ 2,613 1,427 $1.83 $2,718 $1.90

2 102 2+2.5B $ 2,430 1,436 $1.69 $2,660 $1.85

3 103 2+2.5B $ 2,650 1,436 $1.85 $2,660 $1.85

4 104 2+2.5B $ 2,650 1,436 $1.85 $2,660 $1.85

5 105 2+2.5B $ 2,500 1,436 $1.74 $2,660 $1.85

6 106 2+2.5C $ 2,507 1,426 $1.76 $2,607 $1.83

7 107 2+2.5D $ 3,000 1,564 $1.92 $3,081 $1.97

8 108 2+2.5D $ 3,000 1,564 $1.92 $3,081 $1.97

9 109 2+2.5D $ 3,040 1,564 $1.94 $3,081 $1.97

10 110 2+2.5D $ 3,000 1,564 $1.92 $3,081 $1.97

11 111 2+2.5D $ 3,040 1,564 $1.94 $3,081 $1.97

12 112 2+2.5D $ 3,040 1,564 $1.94 $3,081 $1.97

13 113 2+2.5D $ 2,790 1,564 $1.78 $3,081 $1.97

14 114 2+2.5D $ 2,790 1,564 $1.78 $3,081 $1.97

15 115 2+2.5E $ 2,850 1,427 $2.00 $2,964 $2.08

16 116 2+2.5F $ 2,580 1,436 $1.80 $2,738 $1.91

17 117 2+2.5F $ 2,650 1,436 $1.85 $2,738 $1.91

18 118 2+2.5F $ 2,650 1,436 $1.85 $2,738 $1.91

19 119 2+2.5F $ 2,650 1,436 $1.85 $2,738 $1.91

20 120 2+2.5G $ 2,750 1,426 $1.93 $2,860 $2.01

Totals 20 $55,180 29,706 $1.86 $57,387 $1.93

Averages $2,759 1,485 $1.86 $2,869 $1.93

RENT ROLL

LISTED BY

DANNY MCQUAIDSenior Associate, Multifamily

+1 (214) 932-1284danny.mcquaid@matthews.comLicense No. 673000 (TX)

KYLE MATTHEWSChairman & CEO

+1 (310) 919-5757kyle.matthews@matthews.comLicense No. 9005919 (TX)

11-2-2015

Information About Brokerage ServicesTexas law requires all real estate license holders to give the following informaƟon about

brokerage services to prospecƟve buyers, tenants, sellers and landlords.

TYPES OF REAL ESTATE LICENSE HOLDERS: .• A BROKER is responsible for all brokerage acƟviƟes, including acts performed by sales agents sponsored by the broker. • A SALES AGENT must be sponsored by a broker and works with clients on behalf of the broker.

A BROKER’S MINIMUM DUTIES REQUIRED BY LAW (A client is the person or party that the broker represents): • Put the interests of the client above all others, including the broker’s own interests; • Inform the client of any material informaƟon about the property or transacƟon received by the broker; • Answer the client’s quesƟons and present any offer to or counter-offer from the client; and • Treat all parƟes to a real estate transacƟon honestly and fairly.

A LICENSE HOLDER CAN REPRESENT A PARTY IN A REAL ESTATE TRANSACTION:

AS AGENT FOR OWNER (SELLER/LANDLORD): The broker becomes the property owner's agent through an agreement with the owner, usually in a wriƩen lisƟng to sell or property management agreement. An owner's agent must perform the broker’s minimum duƟes above and must inform the owner of any material informaƟon about the property or transacƟon known by the agent, including informaƟon disclosed to the agent or subagent by the buyer or buyer’s agent.

AS AGENT FOR BUYER/TENANT: The broker becomes the buyer/tenant's agent by agreeing to represent the buyer, usually through a wriƩen representaƟon agreement. A buyer's agent must perform the broker’s minimum duƟes above and must inform the buyer of any material informaƟon about the property or transacƟon known by the agent, including informaƟon disclosed to the agent by the seller or seller’s agent.

AS AGENT FOR BOTH - INTERMEDIARY: To act as an intermediary between the parƟes the broker must first obtain the wriƩen agreement of each party to the transacƟon. The wriƩen agreement must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker's obligaƟons as an intermediary. A broker who acts as an intermediary:

• Must treat all parƟes to the transacƟon imparƟally and fairly; • May, with the parƟes' wriƩen consent, appoint a different license holder associated with the broker to each party (owner and

buyer) to communicate with, provide opinions and advice to, and carry out the instrucƟons of each party to the transacƟon. • Must not, unless specifically authorized in wriƟng to do so by the party, disclose:

ᴑ that the owner will accept a price less than the wriƩen asking price; ᴑ that the buyer/tenant will pay a price greater than the price submiƩed in a wriƩen offer; and ᴑ any confidenƟal informaƟon or any other informaƟon that a party specifically instructs the broker in wriƟng not to

disclose, unless required to do so by law.

AS SUBAGENT: A license holder acts as a subagent when aiding a buyer in a transacƟon without an agreement to represent the buyer. A subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first.

TO AVOID DISPUTES, ALL AGREEMENTS BETWEEN YOU AND A BROKER SHOULD BE IN WRITING AND CLEARLY ESTABLISH: • The broker’s duƟes and responsibiliƟes to you, and your obligaƟons under the representaƟon agreement. • Who will pay the broker for services provided to you, when payment will be made and how the payment will be calculated.

LICENSE HOLDER CONTACT INFORMATION: This noƟce is being provided for informaƟon purposes. It does not create an obligaƟon for you to use the broker’s services. Please acknowledge receipt of this noƟce below and retain a copy for your records.

Licensed Broker /Broker Firm Name or Primary Assumed Business Name

License No. Email Phone

Designated Broker of Firm License No. Email Phone

Licensed Supervisor of Sales Agent/Associate

License No. Email Phone

Sales Agent/Associate’s Name License No. Email Phone

Regulated by the Texas Real Estate Commission

Buyer/Tenant/Seller/Landlord Initials

InformaƟon available at www.trec.texas.gov IABS 1-0

Date

Kyle Matthews/Matthews Retail Group Inc. 678067 kyle.matthews@matthews.com (310) 919-5757

Kyle Matthews 678067 kyle.matthews@matthews.com (310) 919-5757