WILLIAMSTOWN. A Multifamily Investment Opportunity with value-add... potential in southwest Houston, Texas OFFERING BROCHURE 272 UNITS

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1 WILLIAMSTOWN A P A R T M E N T S OFFERING BROCHURE 272 UNITS A Multifamily Investment Opportunity with value-add potential in southwest Houston, Texas

2 WILLIAMSTOWN A P A R M E N T S PROPERTY OVERVIEW Williamstown Apartments is a 272-unit, Class C, multifamily asset located in southwest Houston, Texas. The property was built in 1977 and constructed with brick and wood exteriors. Occupancy is currently at 95%. The property is in an excellent location on Bissonnet St., a major frontage road to Interstate 59, which receives an average daily traffic count of over 40,000 vehicles. Interstate 59 and the Sam Houston Tollway are conveniently within two miles for access. There are no apartments under construction or proposed to be constructed in the Braeswood/ Fondren submarket which creates a favorable opportunity for the property to raise rents. Residents are within an 8 miles distance to major employment districts including Westchase (71,000 employees) and Uptown/ Galleria (80,000 employees). Other service facilities nearby include : Texas Instruments (12 minutes), Southwest Corporate Center (4 minutes), and Houston Tribology Consultant Firm (7 minutes). INVESTMENT HIGHLIGHTS Significant value-add opportunity to convert Class C property to a solid Class B asset Comparable market rents are $ $1.04 per SF versus $0.82 per SF at Williamstown Apartments Market average occupancy for Class B properties is 93%, class C assets is 94%, subject is currently 95% occupied Variety of desirable floorplans (one and two bedroom options) with unit sizes ranging from 612 to 1,000 SF Exceptional location and frontage on Bissonnet St., just east of U.S. Highway 59 with a traffic count of 40,000+ vehicles daily The property is near many commercial and retail outlets such as : PlazAmericas Shopping Centre (8 minutes), Sterling McCall Dealerships (Lexus, Hyundai, and Toyota) (5 minutes) and Walmart Supercenter/H-E-B (6 minutes). The remainder of the area is built out with nice single-family homes and competing multifamily properties. With a strong employment base surrounding the property and no current comparable units being delivered to the submarket, Williamstown Apartments is exceptionally positioned to capture increased rents through a value-add program. 2 PRICE PRICE PER UNIT/ SF TERMS TBD TBD All Cash Less than 8 miles from both the Westchase Business District (71,000 employees) and Uptown/ Galleria District (80,000 employees) Just minutes from Memorial Hermann Hospital Southwest campus (3,000 employees), Houston Baptist University (over 3,000 students) and the recently renovated PlazAmericas Shopping Centre (formerly known as Sharpstown Mall) Available All Cash

3 INTERIOR FEATURES Full-size W/D connections * Bookshelves* Patios/ Balconies* Frost Free Refrigerators Garbage disposals Electric Stoves Dishwashers Kitchen pantries Ceramic tile (living room, bathroom, kitchen and dining room) Mini-blinds Two-tone paint Coat and linen closets Walk-in closets COMMUNITY AMENITIES Sparkling Swimming Pool Three Laundry Care Centers Perimeter fence Access Gate Proximity to major employment, shopping and entertainment centers 3

4 SITE INFORMATION ADDRESS: 9200 Bissonnet St. Houston, Texas PROPERTY: Units 272 Total Rentable SF 205,376 Year Built 1977 # of Buildings 19 Avg. Unit SF 755 Stories 2 Avg. Rent / Unit $621 Lot Size (acres) 7.94 Avg. Rent / SF $0.82 Density (units / acre) 34.3 CONSTRUCTION: Style Garden-style Foundation Concrete slab Framing Wood Exterior Brick and wood Roof Pitched with composite shingles Paving Concrete Wiring Copper HVAC Individual ground-mounted units Plumbing Copper SCHOOLS: School District Alief I.S.D. Elementary Best Middle Klentzman (Intermediate) / Olle (Middle) High Elsik / Hastings PARKING: Spaces 366 uncovered spaces (3 handicap/ 7 outside of gate) Ratio spaces per unit UTILITIES: Electrical HVAC Water Gas RUBS Full-size W/D connections PROPERTY STAFF: Individually metered Individual climatecontrolled units Master metered 2 Central boilers Gas heated water Water, gas, pest, trash 176 units Property Manager 1 Assist Mgr. / Leasing 1 Lead Maintenance 1 Make Ready 1 Porter 1 Housekeeper 1 TOTAL 6 DEPOSITS/OTHER FEES: Application Fee (non-refundable) Administration Fee $35 per applicant N/A 1 Bedroom Deposit $100 2 Bedroom Deposit $200 Pet Deposit $250 (% Non-refundable) 50% Restrictions Pet weight limit No aggressive breeds Under 85 lbs. 4 4

5 Park WILLIAMSTOWN Hollow APARMENTS FLOORPLANS A 1 Bedroom 1 Bath 612 SF B 1 Bedroom 1 Bath 612 SF C 1 Bedroom 1 Bath 614 SF D 1 Bedroom 1 Bath 646 SF E 1 Bedroom 1 Bath 709 SF F 2 Bedroom 1 Bath 838 SF G 2 Bedroom 2 Bath 931 SF H 2 Bedroom 2 Bath 931 SF I 2 Bedroom 2 Bath 1,000 SF 5

6 SITE PLAN PROFORMA NOTES UNIT MIX 6

7 WILLIAMSTOWN PROFORMA : UNIT MIX : PROPERTY TAXES ANNUAL MONTHLY PER UNIT PER SF Gross Potential Rent $2,624,160 $218,680 $9,648 $12.78 Loss/Gain to Lease 2.00% (52,483) (4,374) (193) (0.26) Adjusted Gross Potential Rent 2,571, ,306 9, Vacancy Loss 6.00% (154,301) (12,858) (567) (0.75) Concessions 0.00% Models 0.00% Bad Debt 1.00% (25,717) (2,143) (95) (0.13) Total Rental Income 2,391, ,305 8, Other Income Utility Reimbursements 204,933 17, Total Other Income 205,013 17, Effective Gross Income 2,596, ,389 9, Operating Expenses Payroll & Benefits 272,000 22,667 1, General & Administrative 34,000 2, Repairs & Maintenance 104,720 8, Contract Services 50,320 4, Advertising & Promotion 23,120 1, Controllable Expenses 484,160 40,347 1, Utilities 315,281 26,273 1, Insurance 122,400 10, Management Fee 77,900 6, Gross Receipts Tax 14,931 1, Property Taxes 261,457 21, Operating Expenses Before Reserves (1,276,129) (106,344) (4,692) (6.21) Replacement Reserves 81,600 6, Total Operating Expense (1,357,729) (113,144) (4,992) (6.61) NET OPERATING INCOME $1,238,943 $103,245 $4,555 $6.03 Unit Description # of Units % of Total Avg Unit SF Market Rent / Unit Market Rent / SF Post- Upgrade Rent / Unit Post- Upgrade Rent / SF 1Bed/1Bath % 612 $550 $0.90 $700 $1.14 1Bed/1Bath % 614 $550 $0.90 $700 $1.14 1Bed/1Bath % 646 $570 $0.88 $740 $1.15 1Bed/1Bath % 709 $595 $0.84 $825 $1.16 2Bed/1Bath % 838 $690 $0.82 $875 $1.04 2Bed/2Bath % 931 $700 $0.75 $880 $0.95 2Bed/2Bath % 1,000 $720 $0.72 $950 $0.95 Totals/Avg % 755 $621 $0.82 $804 $1.06 Appraisal District Harris County 2014 Tax Rate % Account # Land $1,556,415 Improvements $4,772,836 Total 2015 Tax Value $6,329, Gross Potential Rent is per the Post-Upgrade rent schedule 2. Other Income per the T12 actuals through Mar Utility Reimbursements: 65% recapture of Utilities expense 4. Utilities expense per the T12 actuals through Mar Management Fee is based on 3.00% of Effective Gross Income 6. Property Taxes: 150% of 2015 assessed tax value at 2014 tax rate 7. Replacement reserves are estimated to be $300 per unit and do not reflect actual capital expenditures 7

8 RENT COMPARABLE SUMMARY PROPERTY TOTAL # OF UNITS OCC. YEAR BUILT NRSF UNIT TYPE # OF UNITS % OF TOTAL AVG UNIT SF MARKET RENT $MARKET RENT PSF 1 Crescent Place S Gessner Rd % ,812 1BR 2BR Totals / Avg % 30.2% 707 1, $728 $869 $771 $1.03 $0.87 $ Crystal Falls Westbrae Pkwy % ,081 EFF 1BR 2BR Totals / Avg % 67.9% 12.7% , $605 $776 $1,149 $791 $1.40 $1.11 $1.02 $ Fairfield Trails Westbrae Pkwy % ,492 1BR 2BR Totals / Avg % 48.2% $729 $914 $818 $1.08 $1.01 $ Beacon Hill 8110 Creekbend Dr % ,062 1BR 2BR 3BR Totals / Avg % 29.8% 0.8% , $715 $856 $1,000 $759 $1.00 $0.97 $0.84 $ Reserve at Braes Forest,The 8000 Creekbend Dr % ,230 EFF 1BR 2BR Totals / Avg % 69.1% 23.2% , $555 $702 $938 $745 $1.39 $1.06 $0.91 $ Reserve At Westwood,The Bissonnet St % ,680 1BR 2BR Totals / Avg % 40.7% 704 1, $765 $1,032 $873 $1.09 $0.93 $1.01 TOTALS / AVERAGE 95% 803 $819 $1.02 Williamstown 9200 Bissonnet St % ,376 1BR 2BR Totals /Avg % 41.2% $566 $701 $621 $0.88 $0.77 $0.82 8

9 Park WILLIAMSTOWN Hollow APARMENTS RENT COMPARABLES MAP WILLIAMSTOWN A P A R M E N T S CRESENT PLACE 2 3 FAIRFIELD TRAILS CRYSTAL FALLS 4 BEACON HILL 5 6 RESERVE AT WESTWOOD RESERVE AT BRAES FOREST 9

10 WILLIAMSTOWN A P A R M E N T S 10

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12 WILLIAMSTOWN AREA DEMOGRAPHICS Radius 1 Mile 3 Mile 5 Mile Population 2020 Projections 30, , , Estimate 27, , , Census 25, , ,278 Growth % 8.72% 8.91% Growth % 9.04% 7.85% 2015 Population by Hispanic Origin 17, , , Population by Race 27, , ,315 White 18, % 138, % 329, % Black 7, % 62, % 131, % American Indian and Alaskan % 3, % 9, % Asian 1, % 25, % 68, % Hawaiian and Pacific Islander % % % Other Race % 4, % 10, % Households 2020 Projection 10,461 87, , Estimate 9,616 80, , Census 8,786 74, ,989 Growth % 8.61% 8.79% Growth % 8.50% 7.23% Owner Occupied 1, % 26, % 70, % Renter Occupied 7, % 54, % 129, % 2015 Households by HH Income 9,618 80, ,440 Income Less Than $25,000 4, % 31, % 64, % Income: $25,000 - $50,000 3, % 24, % 58, % Income: $50,000 - $75, % 10, % 29, % Income: $75,000 - $100, % 5, % 16, % Income: $100,000 - $125, % 3, % 10, % Income: $125,000 - $150, % 1, % 5, % Income: $150,000 - $200, % 2, % 6, % Income: $200,000 or more % 1, % 8, % 2015 Avg Household Income $36,712 $48,363 $59, Med Household Income $25,928 $32,632 $38,581 Source: CoStar Realty Information, Inc, July

13 WILLIAMSTOWN SUBMARKET OVERVIEW BRAESWOOD/ FONDREN SW Floorplans (ALL) The table shows statistics for ALL the units in the submarket. Along with the totals, the table displays the information by Class (A,B,C and D). Prices and rental rates are displayed as effective - net of concessions and electric utility adjustments. Total Class A Class B Class C Class D # of Communities # of Units 21, ,832 9,319 8,522 Avg. Size (SF) 839 1, Avg. Price ($/month) $693 $1,269 $872 $715 $571 Avg. Rate ( /SF/month) Occupancy 88.9% 93.9% 93.2% 94.4% 80.8% Market Summary This table shows the general statistics for the market. The prices and rental rates are displayed as effective - net of concessions and electric utility adjustments. Occupancy and Rental Rate Trends This table shows the occupancy and rental rate trends that have occurred over the last 3, 6, and 12 months. These trends are expressed in annualized terms. Absorption This table shows the absorption (change in the number of occupied units) for the market on a quarterly basis. The table displays the number of units absorbed as well as the percentage of units absorbed in relation to the total number of units in the market. (* indicates partial quarter) Construction This table shows the new construction that has occurred in the market. The average year of construction is calculated based on the number of communities and the number of units in the market. Deposits/Rental Concessions This table shows the deposits and rental concessions for the market. Three types of concessions are tracked: move-in specials, months free specials, and floorplan specific specials. # of Operating Communities 84 # of Operating Units 21,937 Avg. Units / Community 261 Avg. Size (SF) 839 Avg. Price ($/month) 693 Avg. Rental Rate ( /SF/month) 82.6 Avg. Occupancy 88.9% Occupancy: Last 3 months -4.8% Last 6 months -0.3% Last 12 months 0.3% Rental Rates: Last 3 months 9.2% Last 6 months 8.8% Last 12 months 5.5% 4/15 to 6/15 Units absorbed -217 % of market -0.99% 1/15 to 3/15 Units absorbed 150 % of market 0.68% 10/14 to 12/14 Units absorbed -16 % of market -0.07% 7/14 to 9/14 Units absorbed 5 % of market 0.02% Units built in 2010 or after 100 % of market 0.5% Avg. YOC / community 1980 Avg. YOC / unit 1979 Avg. Security Deposit $221 Avg. Pet Deposit $322 # of Communities with: Move-in Specials - Months-Free Specials 3 Floorplans Specials 10 Source: Apartment Data Services, Inc., July

14 MAJOR EMPLOYERS HOUSTON BAPTIST UNIVERSITY COMPANY (Miles from property) ) Houston Baptist University (2.6 miles) 250 employees ALS Environmental (5.7 miles) 5,000 total laboratory employees Southwest Corporate Center ( 0.6 miles) 525,580 SF Texas Instruments (9.9 miles) 375 employees Baylor St. Luke s Medical Center (11.9 miles) 4,000 employees Verifinc Corporation (9.1 miles) 5,000 employees TEXAS INSTRUMENTS BAYLOR ST. LUKE S MEDICAL CENTER National Oilwell Varco (5.9 miles) 400 employees Noble Corporation - corporate office ( 5.7 miles) 500 employees Methodist Hospital - Sugar Land (8.8 miles) 600 employees SOUTHWEST CORPORATE CENTER CVR Energy (aka Cvr Refining Holdings, LLC) (7.9 miles) 805 employees Baker Hughes (5.1 miles) 400 employees Shell Information Center (8.8 miles) 1,000 employees Source: REscour, August ALS LABORATORY GROUP

15 WILLIAMSTOWN AREA ATTRACTIONS PARKS AND RECREATION BraeBurn Country Club (1.2 miles) BraeBurn Glen Park (0.6 mile) Fondren Park (5.8 miles) Brays Bayou Hike/Bike Trail (6.8 miles) Brays Bayou Park (1.6 miles) Westwood Golf Club (1.3 miles) RETAIL / ENTERTAINMENT PlazAmericas Mall (3.3 miles) Museum of Southern History (2.4 miles) Sterling McCall Lexus (0.8 mile) Sterling McCall Hyundai (1.2 miles) Sterling McCall Toyota (0.5 mile) Momentum BMW (1 mile) Gillman Honda (1.8 mile) Walmart Supercenter (2 miles) H-E-B (2.7 miles) EDUCATIONAL INSTITUTIONS Houston Baptist University (2.6 miles) Everest Institute Houston (.08 mile) Strake Jesuit College Preparatory (2.9 miles) Baylor College of Medicine (11.5 miles) The University of Texas Health Science Center at Houston (8.9 miles) Source: REscour, August

16 WILLIAMSTOWN LOCATION MAP Spring Future Grand Pkwy Intercontinental Airport Greenspoint Grand Pkwy Katy Energy Corridor 6 Westchase 10 Galleria Greenway Plaza Medical Center 610 Houston Houston CBD Port of Houston Pasadena Sugarland 288 Pearland Hobby Airport Ellington Field WILLIAMSTOWN A P A R M E N T S 16 13

17 WILLIAMSTOWN AERIAL MAP WILLIAMSTOWN N A P A R M E N T S N BELLAIRE BLVD. FO N D N RE. RD BEECHNUT ST. S. GESSNER RD. ET. ST S BIS BISSONNET ST. BISSONNET ST. N ON S. BRAESWOOD. BLVD S. BR AESW OOD BLVD. UPTOWN DISTRICT/ THE GALLERIA WESTCHASE DISTRICT (8 MILES 71,000 EMPLOYEES) N (8 MILES 80,000 EMPLOYEES) CR LL H I O SHARPSTOWN GOLF COURSE AV FT BELLAIRE BLVD. E. PLAZAMERICAS MALL (FKA: SHARPSTOWN MALL) FO N EN DR. RD WILLIAMSTOWN A P A R M E N T S BEECHNUT ST. S. GE SS. ST D. BISSONNET ST. T NE N SO BIS RR NE WESTWOOD COUNTRY CLUB SOUTHWEST CORPORATE CENTER BAYLAND PARK HOUSTON BAPTIST MEMORIAL HERMANN UNIVERSITY HOSPITAL SW BRAE-BURN COUNTRY CLUB BRA U YS BAYO. 17

18 FOR MORE INFORMATION, PLEASE CONTACT: INVESTMENT CONTACTS Ed Cummins Senior Vice President Tim Gregory Senior Vice President PROPERTY TOUR INQUIRIES April Darner Marketing Coordinator West Loop South, Suite 1300 Houston, Texas T F The information provided herein was obtained from sources believed reliable; however, Transwestern makes no guarantees, warranties or representations as to the completeness or accuracy thereof. The presentation of this property is submitted subject to errors, omissions, change of price or conditions, prior sale or lease, or withdrawal without notice. Copyright 2015 Transwestern This offering is submitted and received with the understanding that all offers for the acquisition of the herein described property will be conducted through Transwestern. The Seller, Transwestern expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers to purchase the Property and/or terminate discussions with any entity at any time with or without notice.