DOVER APARTMENTS MULTIFAMILY INVESTMENT OPPORTUNITY Dover Avenue Houston, Texas 77087

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1 MULTIFAMILY INVESTMENT OPPORTUNITY DOVER APARTMENTS 4137 Dover Avenue Houston, Texas Residents enjoy sizable greenspace overlooking Sims Bayou All 2 Bedroom Units Available "All Cash" Certificates of Occupancy in place Habitability requirements have been met- Waiting on final Inspection Consistent high occupancy Property Owned Laundry Facility Individually Metered/Individual HVAC SCOTT GRAY Scott-gray@att.net

2 THE OPPORTUNITY PROPERTY DESCRIPTION The Dover Apartments is a 32 unit apartment community located in close proximity to the I45/Broadway Intersection. The project, consisting of two flat roofed, brick (with cedar shake siding) buildings on poured-in-place concrete slabs were built in The current owner has made major upgrades in the past three years transforming Dover Place into a quiet, desirable apartment community as evidenced by little vacancy. Major improvements to the property include exterior paint, upgraded landscaping, stairwell and landing repairs, property owned laundry room and most recently the installation of a new 100 gallon water heater (8-14). Additionally, the current owner has been through a significant number of units in the past few years eliminating much of the need for major work when turning a unit. Dover Apartments is the ideal investment for the smaller project owner looking for a user friendly investment. The current on-site manager, with six years+ tenure, is responsible for most aspects of the operation except for bill paying and financial reporting. LOCATION The asset is located just west of the I-45 South and Broadway intersection. The project, located within a quiet, clean residential neighborhood is home for many working class families. Access to I-45, Loop 610 and the Beltway 8 provides Dover Place residents employment opportunities as well as an abundance of shopping, restaurants and medical facilities. DOVER APARTMENTS 2

3 INVESTMENT SUMMARY INVESTMENT INFORMATION Price Determined by Market Occupancy 97% Net Operating Income $100,141 Cap Rate 7.70% Loan Amount $975,000 Down Payment $325,00 Property Address Units 32 PROPERTY SUMMARY Net Rentable SF 28,224 Year Built Dover Avenue Houston, Texas Interest Rate 4.50% Amortization 25 Years P&I $5,419.00/Month Cash Flow $35,108 ROI 10.8% Site Acreage ± 1.18 Acres AMENITIES Mechanical System Electricity HVAC Individual Metering Central Laundry Room Clubhouse Patio/Balcony Perimeter Fence Miniblinds Cable Ready Ceiling Fans Smoke Alarms Spacious Courtyards Hot Water Gas Water Master Metered Construction Style Two-story, Garden Exterior Brick Roof Flat Paving Asphalt Wiring Aluminum-Collared No. of Buildings 2 Houston ISD Park Place Elementary Ortiz Middle School Chavez High School HCAD Tax ID No DOVER APARTMENTS 3

4 FINANCIAL ANALYSIS UNIT MIX Units Type Average SF Market Rent Average Rent/SF $625 $0.71 Totals 32 28,224 $20,000 $0.71 INCOME AND EXPENSES INCOME SRG Proforma July YTD 2014 Gross Scheduled Rent $245,760 $245,760 Less: Vacancy 7.00% ($17,023) Less: Loss to Lease 3.00% ($7,373) Net Rental Income $221,184 $204,174 Plus: Other Income $10,000 $7,986 Total Income $231,184 $212,160 EXPENSES Administrative $4,500 $4,544 Advertising & Promotion $1,000 $1,234 Payroll $28,800 $10,345 Repair & Maintenance $17,000 $18,000 Management Fee 5.00% $11,559 $10,608 Utilities $22,000 $21,029 Contracted Services $4,184 $6,687 Real Estate Taxes $20,000 $16,556 Insurance $14,000 $13,824 Replacement Reserve $8,000 $17,000 Total Expenses $131,043 $119,827 Per Unit: $4,095 $3,745 Per Foot: $4.64 $4.25 Net Operating Income $100,141 $92,333 DOVER APARTMENTS 4

5 AERIAL VIEW Park Place Blvd. Park Place Elementary Chavez High School S Telephone Rd. Ortiz Middle School Broadway St. Monroe Rd. DOVER APARTMENTS 5

6 RENT COMPARABLES Units Type Average SF Market Rent Average Rent/SF Built Occupanc y SUBJECT $625 $ % 1 Le Montreal $620 $ % 2 Patrician $625 $ % 3 Colony Manor $800 $ % 4 Encanto ,200 $731 $ % Averages $694 $ % S 1 DOVER APARTMENTS 6

7 DISCLAIMER The information contained in this document has been derived from sources deemed reliable and is subject to errors, omissions, price changes and/or withdrawal. Scott Gray Commercial Real Estate makes no warranty or representation about the content of this brochure. The Purchaser should verify all information contained herein and have it reviewed by his legal counsel and/or tax advisor. FOR MORE INFORMATION ON THIS PROPERTY PLEASE CONTACT SCOTT GRAY