NEAR CAMPUS PORTFOLIO

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1 Hyde Park Place NEAR CAMPUS PORTFOLIO A 3-PROPERTY, 136-UNIT VALUE-ADD OPPORTUNITY IN PREMIER CENTRAL AUSTIN LOCATION For sale as portfolio or individual assets 45 Flats 43 Hyde Park

2 portfolio overview PORTFOLIO INVESTMENT HIGHLIGHTS Irreplaceable in-fill real estate in centrally located Hyde Park, the oldest neighborhood in Austin and only two miles from the University of Texas at Austin Convenient locations provide residents easy access to major retail, dining, and entertainment less than a ½ mile from The Triangle, less than 1.5 miles from Airport Blvd, less than two miles from the Mueller Redevelopment, and less than two miles from the Burnet Road corridor Great opportunity for scale: 136 units spread across three properties allow new owner to gain a substantial footprint in Hyde Park as well as management efficiencies; can also be purchased individually Turning over the rent roll to the highest in place rental rate by unit type would gain a new owner $93,000+ in additional annual income across the portfolio, assuming a 5% vacancy factor 45 Flats has a Land Use Restriction Agreement (LURA) 21 total units must be rented to tenants below certain income thresholds 12 units must be rented to Very Low Income persons current maximum allowable rents are $693 for a studio and $795 for a 1 BR 9 units must be rented to Low Income persons current maximum allowable rents are $1,000 for a studio and $1,145 for a 1 BR Current owner has done the heavy lifting, spending over $725k across the portfolio to cure deferred maintenance and upgrade exteriors and common areas Outstanding value-add opportunity Unit interiors are primed for a new owner to provide a modern finish out and increase rental rates 4 units at 43 Hyde Park have Euro washer/dryers and are receiving a $65 premium new owner can continue installation of these across the portfolio Future interior upgrades may include cherry wood cabinets, granite/quartz countertops, black/stainless steel appliances, vinyl wood flooring throughout, updated lighting and plumbing fixtures, and modern kitchen backsplashes Other upgrade possibilities include: private patio dog yards, bike storage lockers, outdoor BBQ grills, covered parking, etc. PORTFOLIO LOCATION AERIAL RACKSPACE BURNET RD Corridor undergoing revitalization; home to numerous new restaurants and bars including Barley Swine, Bufalina Due, Lick, Taco Flats, Noble Sandwich, Little Woodrow s, and Pinthouse Pizza 2222 TX DEPT OF PUBLIC SAFETY ACC HIGHLAND CAMPUS 290 BEE CAVE RD THE TRIANGLE A 30-acre, Class A mixed-use development with living, retail and park space; tenants include Galaxy Cafe, Maudie s Tex Mex, Hopdoddy Burger Bar, and Orange Theory Fitness MEDICAL DISTRICT LAMAR CENTRAL New 165,000 SF, Class A mixed-use development; tenants include Kendra Scott (HQ), Snooze Eatery, and future restaurant from The Chameleon Group Dell Medical School and its teaching hospital, Dell Seton Medical Center at the University of Texas, are part of a vibrant health district and one of Austin s largest and most anticipated development projects; the Dell Seton Medical Center is a 500,000 square foot, 211-bed cutting-edge teaching hospital and Level 1 Trauma Center 1 N LAMAR BLVD GUADALUPE ST W 38TH ST W 45TH ST E 12TH ST DOWNTOWN AUSTIN Employment base of 150,000+ jobs; population of approx 11,000; ranked #1 Best City to Live in U.S. NORTH LOOP North central Austin s answer to edgy SoCo; a vintage-inspired out of downtown destination including Epoch Coffee, Blue Velvet, Workhorse Bar, Room Service Vintage, drink.well, and Foreign & Domestic 35 MANOR RD E 7TH ST W 51ST ST MANOR ROAD E MARTIN LUTHER KING JR BLVD Known as Restaurant Row ; eclectic restaurants, neighborhood bars and coffee shops such as Unit-D Pizzeria, Dai Due, Eastside Cafe, Salty Sow, Haymaker, Thunderbird Coffee, and Sugar Mama s Bakeshop MUELLER REDEVELOPMENT 711-acre mixed-use urban village consisting of 4M SF of office and retail, more than 5,700 homes and 140 acres of parks, trails, and open space; home to the Dell Children s Medical Center of Central Texas, Austin Studios and 83,000 SF H-E-B Grocery SPRINGDALE RD 183 NEAR CAMPUS PORTFOLIO 43 Hyde Park Hyde Park Place 45 Flats A 3-PROPERTY, 136-UNIT MULTIHOUSING INVESTMENT OPPORTUNITY For sale as a portfolio or individual assets NEAR CAMPUS PORTFOLIO

3 portfolio overview PORTFOLIO AREA HIGHLIGHTS Irreplaceable real estate located in the heart of Hyde Park, one of Austin s most desirable neighborhoods attracting students (both graduate and undergraduate) and young professionals (Austin s fastest growing demographic) Average household income of $85,590 (US Census Bureau, Oct 17) The University of Texas at Austin (UT) is the second largest university in Texas (total enrollment of approximately 51,000 students) and has an on-campus housing supply of just 8,215 beds, resulting in 16% of students living on campus; as a result, almost 43,000 students have a demand for off-campus housing each year Three miles away is the new UT Austin Medical District one of Austin s largest and most anticipated development projects; spans from 12th Street to MLK and bordered by IH-35 & Trinity The newly completed Dell Medical School is the first medical school to be built at a tier-one research university in decades The district will include over 575,000 square feet of space dedicated to education, administration, and research At completion, the medical district is expected to create 6,900 jobs Major employers in the area include the University of Texas (faculty of ±21,000), St. David s Healthcare (8,100 employees), Seton Healthcare (12,770 employees), and Austin Studios (8,000 employees) Properties are located within the historic Hyde Park neighborhood and within walking distance of the premier Triangle Development, popular North Loop District, and the growing Airport Boulevard corridor Hyde Park features several dining and retail options along nearby Duval Road including Hyde Park Bar & Grill, Mother s Cafe and Garden, Julio s Cafe, Quack s 43rd Street Bakery, Asti, Fresh Plus Grocery, Flightpath Coffee House, and Biscuits and Groovy The Triangle features 30-acres of Class A, mixed-use development with residences, park space, and retail, including local favorites like Galaxy Cafe, Maudie s Tex Mex, Hopdoddy Burger Bar, and Orange Theory Fitness The revitalized Burnet Road corridor is less than two miles away with numerous restaurants and bars, including Pinthouse Pizza, Barley Swine, Bufalina Due, Lick, Taco Flats, Noble Sandwich, and Little Woodrow s North Loop District is less than two miles from the properties and features vintage stores, record shops, coffee shops, bars, and restaurants Airport Boulevard is quickly becoming a corridor for dining, including both new options as well as local Austin institutions Just over two miles from the Mueller Redevelopment a 711-acre mixed-use urban village consisting of 4M square feet of office and retail, more than 5,700 homes and 140 acres of parks, trails, and open space; also home to the Dell Children s Medical Center of Central Texas and new 83,000 square foot H-E-B Grocery Aldrich Street (Mueller Town Center) 42 acres, 1.2M square feet of planned retail, restaurants, and entertainment, including newly opened Alamo Drafthouse; the District will be the pulse of the Mueller community and a game changer for the area New Austin Community College (ACC) Highland Mall campus: the $46M campus renovation will encompass 200,000 square feet of instruction space and house 6,000 students in its first phase Regional Workforce Innovation Center a $152.8M project including residential, retail, hospitality, office, and parkland is scheduled to be completed in 2019 Employment base of 190,060 jobs (US Census Bureau, Oct 17) Austin MSA in-migration of 58,300 from Jul 15 to Jul 16 (U.S. Census Bureau, Feb 17) Austin ranked #1 among Best Cities to Live in the U.S. (U.S. News & World, Feb 17) The Triangle Dell Medical School Hyde Park A 3-PROPERTY, 136-UNIT MULTIHOUSING INVESTMENT OPPORTUNITY For sale as a portfolio or individual assets NEAR CAMPUS PORTFOLIO

4 43 hyde park PROPERTY DETAILS SITE INFORMATION Address 4310 Avenue B, Austin, TX Number of Units 29 Year Built 1972 Land Size 0.45 acres (64.44 units/acre) NRA 12,173± SF Occupancy 100% (as of Oct 17) MECHANICAL SYSTEMS Electrical Individually metered (resident pays) HVAC Individual climate controlled units Hot Water Water/Sewer CONSTRUCTION Style Garden Foundation Reinforced concrete slabs Exterior Brick and siding Roof Flat Floor Covering Vinyl plank Paving Asphalt Wiring Aluminum PROFORMA INCOME TOTAL PER UNIT GROSS SCHEDULED RENT 1 $345,600 $11,917 Less: (Gain) / Loss-to-Lease 12, GROSS POTENTIAL INCOME $333,504 $11,500 Less: Vacancy 17, TOTAL RENTAL INCOME $316,224 $10,904 Plus: RUBS Income 2 18, Plus: Other Income 2 3, TOTAL OTHER INCOME 21, EFFECTIVE GROSS INCOME $337,662 $11,644 EXPENSES TOTAL PER UNIT Repairs and Maintenance $15,950 $550 Payroll 0 0 Administrative 1, Marketing 10, Utilities 3 21, TOTAL VARIABLE EXPENSES $49,186 $1,696 Taxes 4 70,212 2,421 Insurance 5, Management Fee 16, TOTAL OPERATING EXPENSES $142,081 $4,899 Plus: Capital Reserves 5 8, TOTAL EXPENSES $150,781 $5,199 NET OPERATING INCOME $186,881 $6, GSR based on market rents as of 9/21/17 rent roll 2. RUBS & Other Income grown 3% from Aug 17 T12 Actuals 3. Adjusted Utilities grown 3% from Aug 17 T12 Actuals 4. Taxes based on 2016 mill rate ( ) 5. Numbers do not reflect actual expense UNIT TYPE # OF UNITS SIZE (SF) PER UNIT PER SF STUDIO $975 $2.40 2BR/1BA $1,500 $1.86 AVG/TOTAL $993 $2.37 *Owner and Broker make no representation as to the actual square footage of any units. Prospective purchasers are encouraged to independently confirm the measurement of all units. INTERIOR AND COMMUNITY FEATURES Studio and two-bedroom floorplans, ideal for students and young professionals who dominate the tenancy Well-maintained, landscaped courtyard Euro washer/dryers* Vinyl plank flooring throughout Modern track lighting in kitchens Ceiling fans *in select units 43 HYDE PARK A 29-UNIT MULTIHOUSING INVESTMENT OPPORTUNITY

5 HYDE PARK PLACE PROPERTY DETAILS SITE INFORMATION Address 4400 Avenue B, Austin, TX Number of Units 40 Year Built 1971 Land Size 0.63 acres (69.84 units/acre) NRA 16,950± SF Occupancy 97.5% (as of Oct 17) MECHANICAL SYSTEMS Electrical Individually metered (resident pays) HVAC Individual climate controlled units Hot Water Water/Sewer CONSTRUCTION Style Garden Foundation Reinforced concrete slabs Exterior Brick Roof Flat Floor Covering Vinyl plank Paving Asphalt Wiring Copper PROFORMA INCOME TOTAL PER UNIT GROSS SCHEDULED RENT 1 $471,900 $11,798 Less: (Gain) / Loss-to-Lease 18, GROSS POTENTIAL INCOME $453,024 $11,326 Less: Vacancy 23, TOTAL RENTAL INCOME $429,429 $10,736 Plus: RUBS Income 2 25, Plus: Other Income 2 5, TOTAL OTHER INCOME 30, EFFECTIVE GROSS INCOME $460,384 $11,510 EXPENSES TOTAL PER UNIT Repairs and Maintenance $22,000 $550 Payroll 0 0 Administrative 2, Marketing 14, Utilities 3 30, TOTAL VARIABLE EXPENSES $68,313 $1,708 Taxes 4 95,287 2,382 Insurance 8, Management Fee 23, TOTAL OPERATING EXPENSES $194,619 $4,865 Plus: Capital Reserves 5 12, TOTAL EXPENSES $206,619 $5,165 NET OPERATING INCOME $253,765 $6, GSR based on market rents as of 9/21/17 rent roll 2. RUBS & Other Income grown 3% from Aug 17 T12 Actuals 3. Adjusted Utilities grown 3% from Aug 17 T12 Actuals 4. Taxes based on 2016 mill rate ( ) 5. Numbers do not reflect actual expense UNIT TYPE # OF UNITS SIZE (SF) PER UNIT PER SF STUDIO $975 $2.36 2BR/1BA $1,300 $1.62 AVG/TOTAL $983 $2.32 *Owner and Broker make no representation as to the actual square footage of any units. Prospective purchasers are encouraged to independently confirm the measurement of all units. INTERIOR AND COMMUNITY FEATURES Studio and two-bedroom floorplans, ideal for students and young professionals who dominate the tenancy Well-maintained, landscaped courtyard Vinyl plank flooring throughout Modern track lighting in kitchens Contemporary painted cabinetry with brushed nickle hardware Ceiling fans HYDE PARK PLACE A 40-UNIT MULTIHOUSING INVESTMENT OPPORTUNITY

6 45 flats PROPERTY DETAILS SITE INFORMATION Address Avenue A, Austin, TX Number of Units 67 Year Built 1968/1970 Land Size NRA 1.30 acres (51.54 units/acre) 24,382± SF Occupancy 100% (as of Oct 17) Electrical HVAC Hot Water Water/Sewer Style Foundation Exterior Roof Floor Covering Paving Wiring UNIT TYPE MECHANICAL SYSTEMS Individually metered (resident pays) Individual climate controlled units CONSTRUCTION Garden Reinforced concrete slabs Stone and siding Composition shingles (4454 and 4458 replaced in 2015) Vinyl plank Asphalt Copper # OF UNITS SIZE (SF) PER UNIT PER SF STUDIO $975 $2.69 PROFORMA INCOME TOTAL PER UNIT GROSS SCHEDULED RENT 1 $743,292 $11,094 Less: (Gain) / Loss-to-Lease 37, GROSS POTENTIAL INCOME $706,127 $10,539 Less: Vacancy 37, TOTAL RENTAL INCOME $668,963 $9,985 Plus: RUBS Income 2 32, Plus: Other Income 2 8, TOTAL OTHER INCOME 40, EFFECTIVE GROSS INCOME $709,867 $10,595 EXPENSES TOTAL PER UNIT Repairs and Maintenance $36,850 $550 Payroll 0 0 Administrative 3, Marketing 23, Utilities 3 44, TOTAL VARIABLE EXPENSES $107,862 $1,610 Taxes 4 145,438 2,171 Insurance 13, Management Fee 35, TOTAL OPERATING EXPENSES $302,194 $4,510 Plus: Capital Reserves 5 20, TOTAL EXPENSES $322,294 $4,810 NET OPERATING INCOME $387,574 $5, GSR based on market rents as of 9/21/17 rent roll 2. RUBS & Other Income grown 3% from Aug 17 T12 Actuals 3. Adjusted Utilities grown 3% from Aug 17 T12 Actuals 4. Taxes based on 2016 mill rate ( ) 5. Numbers do not reflect actual expense STUDIO (Low Income) $975 $2.69 STUDIO (Very Low Income) $693 $1.91 1BR/BA (Low Income) $975 $1.99 AVG/TOTAL $924 $2.54 *Owner and Broker make no representation as to the actual square footage of any units. Prospective purchasers are encouraged to independently confirm the measurement of all units. INTERIOR AND COMMUNITY FEATURES Studio and one-bedroom floorplans, ideal for students and young professionals who dominate the tenancy Vinyl plank flooring throughout Spacious built-in shelving Ceiling fans Fenced-in patio dog yards* *in select units 45 FLATS A 67-UNIT MULTIHOUSING INVESTMENT OPPORTUNITY

7 property Photos 43 HYDE PARK HYDE PARK PLACE 45 FLATS A 3-PROPERTY, 136-UNIT MULTIHOUSING INVESTMENT OPPORTUNITY For sale as a portfolio or individual assets NEAR CAMPUS PORTFOLIO

8 43 Hyde Park Hyde Park Place 45 Flats M51 Additional information for the Near Campus Portfolio is available on our website at: M52 PRIMARY CONTACTS: James Young Andrew Shih DEBT AND EQUITY CONTACTS: Matt Greer Patrick Short Matt Michelson Central Texas: 901 S. MoPac Expressway, Barton Oaks Plaza II, Suite 275, Austin, TX T This information has been derived from sources deemed reliable. However, it is subject to errors, omissions, price change and/or withdrawal, and no warranty is made as to the accuracy. Further, no warranties or representation shall be made by ARA, A Newmark Company (ARA Newmark) and/or its agents, representatives or affiliates regarding oral statements which have been made in the discussion of the above property. This presentation, prepared by ARA Newmark was sent to the recipient under the assumption that s/ he is a buying principal. Any potential purchaser is advised that s/ he should either have the abstract covering the real estate which is the subject of the contract examined by an attorney of his/her selection, or be furnished a policy of title insurance. Do not contact the Property.