OFFERING SUMMARY SAN MARCOS, TEXAS. Holliday Fenoglio Fowler, L.P. ( HFF ) a Texas licensed real estate broker.

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1 OFFERING SUMMARY SAN MARCOS, TEXAS Holliday Fenoglio Fowler, L.P. ( HFF ) a Texas licensed real estate broker.

2 2 AQUA 16 OFFERING SUMMARY

3 EXECUTIVE SUMMARY HFF has been exclusively retained to offer an opportunity for qualified investors to purchase the fee simple interest in AQUA 16 (The Property ), a two-story, 162 unit garden apartment community located in San Marcos, TX. Situated on 7.88 acres of land with frontage on the west side of Interstate Highway 35 (I-35), the Property has excellent visibility and is less than one mile away from Texas State University which enrolls 39,000 students. Situated in between two of Texas largest metros, Austin (30 minutes) and San Antonio (40 minutes), San Marcos has experienced explosive job and population growth fueling renter demand. Aqua 16 has benefited from over $1 million in recent capital improvements addressing the Property s common areas, landscaping and unit interiors. New ownership has the opportunity to further increase revenue through the proven Designer unit upgrade that has yielded monthly rent premiums of $200. Additionally, the continued expansion of the all-in-one washer dryers as well as adding more private fenced-in yards, are excellent options to increase income. PROPERTY OVERVIEW PROPERTY NAME Aqua 16 ADDRESS 1640 Aquarena Springs Dr. San Marcos, TX NUMBER OF UNITS 162 YEAR BUILT 1974 OCCUPANCY (2/4/2019) 94.00% AVERAGE UNIT SIZE 809 RENTABLE SF 131,073 ACREAGE 7.88 TOTAL SF 131,07343,253 PARCEL # R12020, R12271, R12275 OFFERING SUMMARY AQUA 16 3

4 INVESTMENT HIGHLIGHTS DYNAMIC GROWTH REGION San Marcos is situated between Austin and San Antonio along the Interstate 35 corridor fostering an economy that offers job opportunities in both markets. In 2017, Forbes named this area along IH-35 the Next Great Metropolis and that vision is taking shape. Sitting at the crossroads of several transportation routes, major interstate highways connect San Marcos east to west and north to south. The proximity of Texas State University, the San Marcos River, Amazon s Central Texas Distribution Center, and Outlet Malls make the city a highly desirable place to live. 42,000 STUDENTS PROJECTED BY AUSTIN 35 MINUTES TO AUSTIN SAN MARCOS 40 MINUTES TO SAN ANTONIO 4 AQUA 16 OFFERING SUMMARY SAN ANTONIO

5 PLATINUM UNIT THE CITY OF SAN MARCOS IS ANTICIPATING THE POPULATION TO GROW ALMOST 30% TO OVER 80,000 PEOPLE BY THE YEAR OFFERING SUMMARY AQUA 16 5

6 PROXIMITY TO TEXAS STATE UNIVERSITY AND OTHER AREA DRIVERS AQUA 16 is ideally located on the coveted western side of IH-35 and is within walking distance of the campus bus stops and a short bike ride away from Texas State University which enrolls 39,000+ students. AQUA 16 s micro location is one of the best in all of San Marcos offering residents the privacy and independence off-campus living affords, while also providing unbeatable access to Campus, San Marcos s top economic drivers and a short commute to Austin, TX (25 minutes). SAN MARCOS/TANGER OUTLETS Located directly off I-35, less than 10 minutes from AQUA 16, The San Marcos Premium Outlets Tanger Factory Outlets combine to host over 550 stores and 3,600 employees. One of the most popular attractions in the state, the malls have over 11 million visitors annually. AMAZON DISTRIBUTION CENTER Due to the central location between Austin and San Antonio, Amazon recently opened a 855,000 square foot fulfillment center in San Marcos. Less than 8 minutes from AQUA 16 with more than 1,000 employees. Residents are presented with a multitude of necessity-based shopping and top dining options with Walmart Super Center, HEB, Walgreens, Hopdoddy, Raising Cane s, In-N-Out Burger, and many others located within a mile of the Property. In the fall of 2019, San Marcos will welcome its first Chick-fil-A franchise located adjacent to the Property and with access from IH-35 and Aquarena Springs Drive. Additionally, San Marcos has become known for its entertaining night life with 15+ bars and pubs surrounding the Square less than five minutes from AQUA 16. The greater San Marcos region sits in a large opportunity zone, surrounding the city center and AQUA 16. The opportunity zones, coupled with the tremendous growth of Central Texas and San Marcos, bodes well for the Property and the region as a whole, with investment and development expected to increase even further. 6 AQUA 16 OFFERING SUMMARY

7 SAN MARCOS/TANGER OUTLETS 550 STORES DOWNTOWN SAN MARCOS DISTRIBUTION CENTER 8 MINUTE DRIVE TIME 855,000 SF EMPLOYEES LYNDON SPRINGTOWN 510 BEDS/$2.00 PSF RENTS SPRINGTOWN TOWN CENTER SPOT BOBCAT BALLPARK BOBCAT STADIUM SPRING LAKE MIDTOWN HIGH DENSITY MIXED-USE AREA THORPE LANE COMING SUMMER-FALL ,000 VPD 28,500 VPD OFFERING SUMMARY AQUA 16 7

8 DEMOGRAPHIC HIGHLIGHTS The population of San Marcos has grown more than 30% since 2010 due in large part to it s position along the IH-35 corridor and the evolution of the mega region being formed between two of Texas largest metros, Austin and San Antonio. San Marcos is expected to continue this upward trend with population increases of 30% to over 80,000 people projected by Furthermore, 60% of the population is within the prime renter age bracket of and area rentership exceeds 70%. VALUE-ADD OPPORTUNITIES/COVERED LAND PLAY Current ownership recently invested over $1 million in various capital improvements, primarily addressing the Property s exterior and common areas. Approximately 45% of the units have been upgraded to the Platinum level which includes vinyl-plank flooring, resurfaced countertops, black appliances, and upgraded hardware/fixtures throughout. Monthly rents at AQUA 16 have been consistently strong, achieving $972/month ($1.20 PSF) due to the superb location, unique finish-outs and best-in-class amenities including a fitness center, dog park, private yards, two pools, and highspeed internet/cable package. Ownership recently renovated four units with high end finish outs. Designated Designer, these units include granite countertops, stainless steel appliances, new cabinet faces, and tile backsplashes. Offered at a $200 monthly premium, these units leased up quickly as they provide young professionals and students a luxury option at a discount to new construction and purpose-built student housing product. In addition to continuing designer-level renovations, future owners have the opportunity to add all-in-one washer/dryers and private fenced yards, which have garnered $50 and $100 per month, respectively. AQUA 16 also presents an intriguing covered land play opportunity given the size of the parcel (7.88 acres), low density development, and irreplaceable location with frontage on IH-35. Located in the Midtown corridor, AQUA 16 has CBD-5 Urban Center zoning designation, which aims to accommodate higher density mixed-use buildings per the Vision San Marcos Comprehensive Plan adopted in AQUA 16 OFFERING SUMMARY

9 DESIGNER UNIT OFFERING SUMMARY AQUA 16 9

10 APARTMENT AMENITIES THREE DISTINCT FINISH-OUTS Legacy (85 units) Carpet flooring, laminate countertops, white appliances, original cabinet faces) Platinum (72 units) Vinyl-plank flooring, resurfaced counter-tops, black appliances, updated fixtures, tile backsplash (some units). Designer (5 units) - Vinyl-plank flooring, new trim and baseboards, five-panel door, quartz counter-tops, stainless steel appliances, subway tile backsplash, modern shaker-style cabinets, ultra-thin LED lights, custom bath vanity consoles. Spectrum Select Internet & Cable Package ($100 monthly value, residents charged $20/month) New High-Speed Fiber Wi-Fi In All units 125+ Channel Spectrum TV package Walk-in Closets Patio/Balcony Electronic Thermostat Extra Storage* All-In-One Washer/Dryer * Private Yards* *Select Units COMMUNITY AMENITIES Across the Street from Texas State Campus Shuttle Highest Speed Spectrum Fiber Wi-Fi in Common Areas Two Luxurious Pools Spacious Dog Park On-site Fitness Center Two Laundry Facilities 10 AQUA 16 OFFERING SUMMARY

11 UNIT MIX Units % Unit Description Unit Type SF Total SF 1 1% Studio E % 1 BR - 1 BA A , % 1 BR BA A , % 2 BR - 1 BA B , % 2 BR BA B % 2 BR BA B , % 3 BR - 2 BA C1 1,125 2, % ,073 OFFERING SUMMARY AQUA 16 11

12 DEAL TEAM Forrest Bass Senior Director T: Matt Pohl Senior Director T: Spencer Roy Associate T: DEBT Sean Wolff Analyst T: Brandon Allen Analyst T: Chris McColpin Senior Director T: HFF has been engaged by the owner of the property to market it for sale. Information concerning the property described herein has been obtained from sources other than HFF, and neither Owner nor HFF, nor their respective equity holders, officers, employees and agents makes any representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all reference to age, square footage, income, expenses and any other property specific information are approximate. Any opinions, assumptions, or estimates contained herein are projections only and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a purchaser, and HFF, its partners, officers, employees and agents disclaim any liability that may be based upon or related to the information contained herein. Prospective purchasers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change.