PREPARED BY: KET Enterprises Incorporated. & Mark Kalil & Associates, Inc.

Transcription

1 PREPARED BY: KET Enterprises Incorporated & Mark Kalil & Associates, Inc.

2 F6/MIDTOWN PORTFOLIO HIGHLIGHTS 12 renovated, upscale assets, positioned in the highly sought after Inner Loop of Houston. Ideal for condo conversion. Excellent potential land play opportunity. Located in the Inner Loop/Montrose/West U. area of Houston. 8 properties are cross-collateralized. Dura-Last roofs have been installed on all the the properties except 2. Easy access to the University of St. Thomas and major employment centers including Downtown Houston, the Galleria, Greenway Plaza and The Medical Center. Strong area demographics. The properties are very well maintained, in upscale condition and are incomparable to others in the area. Mark Kalil & Associates, Inc Kirby, Suite 1000 Houston, TX T F C mark@markkalil.com KET Enterprises Incorporated 4295 San Felipe, Suite 355 Houston, TX T F C twilk4@ketent.com

3 F6/MIDTOWN PORTFOLIO SUMMARY Updated 2/28/2014 Feb '14 Debt In Place Property Location Units Age Occ Sq Ft Market Rent Debt Service Asking NOI Whitney Montrose % 3,560 $7,785 $0 $0 Market $52, Garrott Montrose % 9,232 $16,285 $0 $0 Market $146, Yupon Montrose % 4,950 $8,785 $0 $0 Market $55, Banks Museum District % 5,748 $9,770 $0 $0 Market $71, Norfolk Montrose / % 29,807 $1,350 $1,989,644 $131,819 Market $264, Portsmouth Montrose % 24,222 $40,825 $2,171,064 $143,839 Market $284, Richton Upper Kirby % 12,236 $22,640 $838,322 $55,541 Market $123, Drake West U % 10,201 $16,630 $892,263 $60,510 Market $97, Park Montrose % 12,533 $24,760 $1,134,376 $75,155 Market $180, Garrott Montrose % 11,487 $22,735 $1,156,306 $76,608 Market $52, Garrott Montrose % 7,711 $15,275 $809,526 $54,837 Market $99, W Alabama Montrose % 9,457 $16,755 $914,005 $60,626 Market $127,753 Totals/s % 141,144 $203,595 $9,905, ,936 Market $1,557,354 Notes: The F6 properties (highlighted above) are cross-collateralized. Mark Kalil & Associates, Inc Kirby, Suite 1000 Houston, TX T F C mark@markkalil.com KET Enterprises Incorporated 4295 San Felipe, Suite 355 Houston, TX T F C twilk4@ketent.com

4 F6/MIDTOWN PORTFOLIO MAP

5 F6/MIDTOWN PORTFOLIO PICTURES 1901 Whitney 3402 Garrott 4414 Yupon 1219 Banks 1916 Norfolk 1903 Portsmouth 2322 Richton 4115 Drake 2300 Park 3602 Garrott 3618 Garrott 420 W Alabama

6 1901 WHITNEY ST., HOUSTON, TX Physical Information Financial Information Proposed Loan Parameters Operating Information Number of Units 9 Asking Market Est New 70% of Asking Est Mkt Rent (Dec-13) $7,785 Avg Unit Size 396 Price Per Unit N/A Amortization (months) Estimated Collections $7,572 Net Rentable Area 3,560 Price Per Sq. Ft. N/A Debt Service Physical Occ (Dec-13) 100% Land Area (Acres) 0.11 Stabilized NOI $52,837 Monthly P & I Est Ins per Unit per Yr $259 Units per Acre Interest Rate Property Tax Information Date Built 1952 Date Due Tax Rate () Water Meter / Master Elec Meter RUBS Indiv Est Res for Repl/Unit/Yr Yield Maintenance Yes Tax Assessment Taxes $375,817 $11,043 Roof Style Flat Est Future Tax Assessment $650,300 HVAC System Indiv *Current Value is Stabilized Value less Rehab, Profit and Carry Est Future Taxes $19,108 INCOME PRO-FORMA INCOME Current Street Rent with a 6% Increase 99,025 Estimated Gross Scheduled Income 99,025 Estimated Loss to Lease (2% of Total Street Rent) (1,981) 2% Estimated Vacancy (1% of Total Street Rent) (990) 1% Estimated Concessions and Other Rental Losses (1% of Total Street Rent) (990) 1% Estimated Utilities Income Estimated Other Income 750 Estimated Total Rental Income 98,563 ESTIMATED TOTAL PRO-FORMA INCOME 98,563 Oct '13 thru Dec '13 Income Fixed Expenses MODIFIED ACTUALS $8,252 / Mo $8,252 / Mo 2,749 $305 / Unit / Yr $83 / Unit / Yr Fixed Expenses Estimated Fixed Expenses Taxes $10,019 $1,113 per Unit 12/13 OS $19,108 $2,123 per Unit Tax Rate & Future Assessment Insurance $2,329 $259 per Unit 2014 Insurance Quote $2,329 $259 per Unit 2014 Insurance Quote Water & Sewer $3,704 $412 per Unit $3,704 $412 per Unit Gas $1,166 $130 per Unit $1,166 $130 per Unit $8,214 / Mo $1,372 per Unit $2,382 per Unit Total Utilities 5,989 $665 per Unit 5,989 $665 per Unit Other Expenses Other Expenses Estimated Other Expenses General & Admin & Marketing R&M (including maint salaries) Labor Costs Contract Services Management Fees $2,180 $6,699 $3,343 $2,261 $3,407 $242 per Unit $744 per Unit $371 per Unit $251 per Unit 3.75% $379 per Unit Added by Broker $2,700 $4,500 $3,343 $2,261 $3,696 $300 per Unit $500 per Unit $371 per Unit $251 per Unit 3.75% $411 per Unit Total Other Expense 17,890 $1,988 per Unit 16,500 $1,833 per Unit Note: $ of CapEx have been removed from the Repairs & Maintenance section of Expenses $90,865 PRO-FORMA EXPENSE December YTD Expenses Estimated Expenses Total Fixed Expense 12,348 21,437 Utilities Utilities Estimated Utilities Electricity $1,119 $124 per Unit $1,119 $124 per Unit Total Operating Expense 36,227 $4,025 per Unit 43,926 $4,881 per Unit Reserve for Replacement 1,800 $200 per Unit 1,800 $200 per Unit Total Expense 38,027 $4,225 per Unit 45,726 $5,081 per Unit Net Operating Income (Actual Underwriting) 52,838 52,837 NOTES: ACTUALS: Actuals are based on owner's 12/13 YTD operating statement. PRO FORMA: Insurance is estimated. Taxes are rate and estimated future assessment. All other expenses are estimated. The owner keeps the assets much cleaner than normal. DISCLAIMER: The information contained herein has been obtained from sources that we deem reliable. We have no reason to doubt the accuracy of the information, but we have not verified it and make no guaranty, warranty or representation about it. It is your resonsibility to independently confirm its accuracy and completeness. We have not determined whether the property complies with deed restrictions or any city licensing or ordinances including life safety compliance or if the property lies within a flood plain. THE PROSPECTIVE BUYER SHOULD CAREFULLY VERIFY EACH ITEM OF INCOME OR EXPENSE AND PERFORM OR HAVE PERFORMED ANY INSPECTIONS TO VERIFY POSSIBLE CONTAMINATION BY ASBESTOS, LEAD PAINT, MOLD OR ANY OTHER HAZARDOUS SUBSTANCES. The owner reserves the right to withdraw this listing or change the price at anytime without notice during the marketing period. THIS IS A BROKER PRICE OPINION OR COMPARATIVE MARKET ANALYSIS AND SHOULD NOT BE CONSIDERED AN APPRAISAL. In making any decision that relies upon my work, you should know that I have not followed the guidelines for development or an appraisal or analysis contained in the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation. 2/28/2014 MidtownPortfolio-Summary.xlsx

7 1901 WHITNEY ST., HOUSTON, TX Keymap: 493N Construction Quality: B+ PROPERTY INFORMATION AMENITIES EXISTING MORTGAGE TAXING AUTHORITY - HARRIS COUNTY Age: 1952 Access Gates Park & Ride Nearby Mortgage Balance ACCT NO: Elec Meter: Indiv Cable Ready Shuttle Route Amortization Houston ISD $ A/C Type: HVAC Ceiling Fans School Bus Pick-up P & I Harris County $ Water: Indiv Mini Blinds Type Harris County Flood Control $ Wiring: Copper Covered Parking Assumable Port of Houston Authority $ Roof: Flat Monthly Escrow Harris County Hospital District $ Paving: Concrete Origination Date Harris County Education Dept $ Materials: Brick/Wood Due Date Houston Community College $ # of Stories: 2 Interest Rate City of Houston $ Parking: Yield Maintenance HC ID 6 $ Buildings: 1 Transfer Fee Tax Rate/$100 $ Units/Acre: *In Select Units Tax Assessment $375,817 COLLECTIONS 3 Mo Avg $ 7,572 Jan $ 5,492 Feb $ 6,897 Mar $ 3,291 Apr $ 6,831 May $ 8,447 June $ 7,872 July $ 6,418 Aug $ 4,464 Sept $ 7,361 Oct $ 7,337 Nov $ 7,286 Dec $ 8,093 $9,000 $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $- Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec PLEASE DO NOT VISIT THE SITE WITHOUT AN APPOINTMENT MADE THROUGH THE BROKER. PROPERTY HIGHLIGHTS The 1901 Whitney Apartments, is a two story, garden-style, apartment community located in the Montrose submarket of Houston,Texas. The asset was originally built in Residents enjoy ample amenities which include: mini-blinds, ceiling fans, a an appliance package which includes a gas stove, refrigerator and a dishwasher, and a beautifully landscaped courtyard. Currently there are no leasing concessions. The asset is covered under a blanket insurance policy that has better than full replacement coverage and a 2% deductible for wind, named storms and full liability. The owner has extremely and carefully upgraded this asset.. Disclaimer: The information contained in this Memorandum reflects material from sources deemed to be reliable, including data such as operating statements, rent roll, etc. provided by the Owner. Notwithstanding, KET Enterprises Incorporated does not make any warranties about the information contained in this marketing package. Every prospective purchaser should verify the information and rely on his accountants or attorneys for legal and tax advice. This offer is As-Is, Where-Is. Answers to specific inquiries will have to be supplied by the Owner and are available upon request. Rates of return vary daily. No representations are made concerning environmental issues, if any. THIS IS A BROKER PRICE OPINION OR COMPARATIVE MARKET ANALYSIS AND SHOULD NOT BE CONSIDERED AN APPRAISAL. In making any decision that relies upon my work, you should know that I have not followed the guidelines for development or an appraisal or analysis contained in the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation.

8 1901 WHITNEY ST., HOUSTON, TX Unit Mix UNIT MIX JAN 2014 Unit # Type No. Units Sq Ft Total SqFt Market Rent Total Rent Rent/SF 1 1 Bed/1 Bath $995 $995 $ Bed/1 Bath $895 $895 $ Bed/1 Bath $775 $775 $ Bed/1 Bath $895 $895 $ Bed/1 Bath $750 $750 $ Bed/1 Bath $975 $975 $ Bed/1 Bath $875 $875 $ Bed/1 Bath $975 $975 $ Bed/1 Bath $650 $650 $1.64 TOTALS AND AVERAGES ,560 $865 $7,785 $2.19 Total Units Sq. Ft. Total Sq. Feet Rent/Unit Total Rent Rent/ SF Apartment Features Appliance Package(Gas Stove, dishwasher, refrigerator) Renovated Interiors Community Features Great Inner Loop Location Gated Community w/off Street Parking Onsite Laundry Facility Sprinkler System Covered Parking

9 3402 GARROTT ST., HOUSTON, TX Physical Information Financial Information Proposed Loan Parameters Operating Information Number of Units 15 Asking Market Est New 70% of Asking Est Mkt Rent (Dec-13) $16,285 Avg Unit Size 615 Price Per Unit N/A Amortization (months) 300 Estimated Collections $16,846 Net Rentable Area 9,232 Price Per Sq. Ft. N/A Debt Service Physical Occ (Dec-13) 88% Land Area (Acres) 0.29 Stabilized NOI $116,241 Monthly P & I Est Ins per Unit per Yr $544 Units per Acre Interest Rate Property Tax Information Date Built 1968 Date Due Tax Rate () Water Meter / Master Elec Meter RUBS Indiv Est Res for Repl/Unit/Yr Yield Maintenance Tax Assessment Taxes $314,000 $9,129 Roof Style Pitched Est Future Tax Assessment $1,430,663 HVAC System Indiv Est Future Taxes $41,595 INCOME PRO-FORMA INCOME Current Street Rent with a 5% Increase 205,191 Estimated Gross Scheduled Income 205,191 Estimated Loss to Lease (2% of Total Street Rent) (4,104) 2% Estimated Vacancy (1% of Total Street Rent) (2,052) 1% Estimated Concessions and Other Rental Losses (2% of Total Street Rent) (4,104) 2% Estimated Utilities Income Estimated Other Income 9,213 Estimated Total Rental Income 209,513 ESTIMATED TOTAL PRO-FORMA INCOME 209,513 Oct '13 thru Dec '13 Income Fixed Expenses MODIFIED ACTUALS h $17,099 / Mo $17,099 / Mo 5,369 $358 / Unit / Yr $614 / Unit / Yr Fixed Expenses Estimated Fixed Expenses Taxes Insurance $8,598 $8,155 $573 per Unit $544 per Unit 12/13 OS $41,595 $8,155 $2,773 per Unit $544 per Unit Tax Rate & Future Assessment #### Water & Sewer $7,950 $530 per Unit $7,950 $530 per Unit Gas $2,142 $143 per Unit $2,142 $143 per Unit $17,459 / Mo $1,117 per Unit $3,317 per Unit Total Utilities 11,411 $761 per Unit 11,411 $761 per Unit Other Expenses Other Expenses Estimated Other Expenses General & Admin & Marketing R&M (including maint salaries) Labor Costs Contract Services (including trash) Management Fees $2,276 $4,837 $5,545 $4,309 $7,581 $152 per Unit $322 per Unit $370 per Unit $287 per Unit 3.75% $505 per Unit Added by Broker $3,900 $7,500 $5,545 $4,309 $7,857 $260 per Unit $500 per Unit $370 per Unit $287 per Unit 3.75% $524 per Unit Total Other Expense 24,547 $1,636 per Unit 29,110 $1,941 per Unit Note: $4, of CapEx have been removed from the Repairs & Maintenance section of Expenses $202,150 PRO-FORMA EXPENSE December YTD Expenses Estimated Expenses Total Fixed Expense 16,753 49,750 Utilities Utilities Estimated Utilities Electricity $1,319 $88 per Unit $1,319 $88 per Unit Total Operating Expense 52,711 $3,514 per Unit 90,271 $6,018 per Unit Reserve for Replacement 3,000 $200 per Unit 3,000 $200 per Unit Total Expense 55,711 $3,714 per Unit 93,271 $6,218 per Unit Net Operating Income (Actual Underwriting) 146, ,241 NOTES: ACTUALS: Actuals are based on owner's 12/13 YTD operating statement. PRO FORMA: Insurance is estimated. Taxes are rate and estimated future assessment. All other expenses are estimated. DISCLAIMER: The information contained herein has been obtained from sources that we deem reliable. We have no reason to doubt the accuracy of the information, but we have not verified it and make no guaranty, warranty or representation about it. It is your resonsibility to independently confirm its accuracy and completeness. We have not determined whether the property complies with deed restrictions or any city licensing or ordinances including life safety compliance or if the property lies within a flood plain. THE PROSPECTIVE BUYER SHOULD CAREFULLY VERIFY EACH ITEM OF INCOME OR EXPENSE AND PERFORM OR HAVE PERFORMED ANY INSPECTIONS TO VERIFY POSSIBLE CONTAMINATION BY ASBESTOS, LEAD PAINT, MOLD OR ANY OTHER HAZARDOUS SUBSTANCES. The owner reserves the right to withdraw this listing or change the price at anytime without notice during the marketing period. THIS IS A BROKER PRICE OPINION OR COMPARATIVE MARKET ANALYSIS AND SHOULD NOT BE CONSIDERED AN APPRAISAL. In making any decision that relies upon my work, you should know that I have not followed the guidelines for development or an appraisal or analysis contained in the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation. 2/28/2014 MidtownPortfolio-Summary.xlsx

10 3402 GARROTT ST., HOUSTON, TX Keymap: 493S Construction Quality: B+ PROPERTY INFORMATION AMENITIES EXISTING MORTGAGE TAXING AUTHORITY - HARRIS COUNTY Age: 1968 Access Gates Park & Ride Nearby Mortgage Balance ACCT NO: Elec Meter: Indiv Cable Ready Shuttle Route Amortization Houston ISD $ A/C Type: HVAC Ceiling Fans School Bus Pick-up P & I Harris County $ Water: RUBS Outside Storage Type Harris County Flood Control $ Wiring: Copper Mini Blinds Assumable Port of Houston Authority $ Roof: Pitched Monthly Escrow Harris County Hospital District $ Paving: Concrete Origination Date Harris County Education Dept $ Materials: Brick/Wood Due Date Houston Community College $ # of Stories: 2 Interest Rate City of Houston $ Parking: Yield Maintenance HC ID 6 $ Buildings: 1 Transfer Fee Tax Rate/$100 $ Units/Acre: *In Select Units Tax Assessment $314,000 COLLECTIONS 3 Mo Avg $ 16,846 Jan $ 15,048 Feb $ 18,142 Mar $ 17,010 Apr $ 15,906 May $ 20,353 June $ 12,860 July $ 17,076 Aug $ 12,843 Sept $ 17,292 Oct $ 17,264 Nov $ 17,200 Dec $ 16,073 $25,000 $20,000 $15,000 $10,000 $5,000 $- Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec PLEASE DO NOT VISIT THE SITE WITHOUT AN APPOINTMENT MADE THROUGH THE BROKER. PROPERTY HIGHLIGHTS The 3402 Garrott Apartments, is a two story, garden-style, apartment community located in the Montrose submarket of Houston,Texas. The asset was originally built in Residents enjoy ample amenities which include: mini-blinds, kitchen pantries, ceiling fans, a full appliance package, and a beautifully landscaped courtyard with a water feature. Currently there are no leasing concessions. 15 of the 17 units here are owned by the owner (fractured condo project). The asset is covered under a blanket insurance policy that has better than full replacement coverage and a 2% deductible for wind, named storms and full liability. The property is in excellent condition. This property is available all cash or new loan, with no debt impediments. Disclaimer: The information contained in this Memorandum reflects material from sources deemed to be reliable, including data such as operating statements, rent roll, etc. provided by the Owner. Notwithstanding, KET Enterprises Incorporated does not make any warranties about the information contained in this marketing package. Every prospective purchaser should verify the information and rely on his accountants or attorneys for legal and tax advice. This offer is As-Is, Where-Is. Answers to specific inquiries will have to be supplied by the Owner and are available upon request. Rates of return vary daily. No representations are made concerning environmental issues, if any. THIS IS A BROKER PRICE OPINION OR COMPARATIVE MARKET ANALYSIS AND SHOULD NOT BE CONSIDERED AN APPRAISAL. In making any decision that relies upon my work, you should know that I have not followed the guidelines for development or an appraisal or analysis contained in the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation.

11 3402 GARROTT ST., HOUSTON, TX Unit Mix UNIT MIX JAN 2014 Unit # Type No. Units Sq Ft Total SqFt Market Rent Total Rent Rent/SF 1 1 Bed/1 Bath $895 $895 $ Bed/1 Bath $1,125 $1,125 $ Bed/1.5 Bath 1 1,003 1,003 $1,225 $1,225 $ Bed/1 Bath $1,050 $1,050 $ Bed/1 Bath $1,095 $1,095 $ Bed/1 Bath $1,095 $1,095 $ Bed/1 Bath $1,095 $1,095 $ Bed/1.5 Bath 1 1,003 1,003 $1,295 $1,295 $1.29 *9 Maintenance fee $200 $ Bed/1 Bath $995 $995 $1.80 *11 Maintenance fee 1 $200 $ Bed/1 Bath $695 $695 $ Bed/1 Bath $925 $925 $ Bed/1 Bath $1,250 $1,250 $ Bed/1 Bath $1,095 $1,095 $ Bed/1 Bath $1,175 $1,175 $ Bed/1 Bath $875 $875 $1.58 * Units are individually owned and are not being conveyed TOTALS AND AVERAGES ,116 $958 $16,285 $1.61 Total Units Sq. Ft. Total Sq. Feet Rent/Unit Total Rent Rent/ SF % Units by Type 12% 1 Bed/1 Bath 2 Bed/1.5 Bath 88% Apartment Features Appliance Package Renovated Interiors Community Features Great Inner Loop Location Gated Community w/off Street Parking Onsite Laundry Facility Sprinkler System Water Feature

12 4414 YUPON ST., HOUSTON, TX Physical Information Financial Information Proposed Loan Parameters Operating Information Number of Units 10 Asking Market Est New 70% of Asking Est Mkt Rent (Dec-13) $8,785 Avg Unit Size 495 Price Per Unit N/A Amortization (months) Estimated Collections $8,831 Net Rentable Area 4,950 Price Per Sq. Ft. N/A Debt Service Physical Occ (Dec-13) 100% Land Area (Acres) 0.17 Stabilized NOI $60,537 Monthly P & I Est Ins per Unit per Yr $346 Units per Acre Interest Rate Property Tax Information Date Built 1960 Date Due Tax Rate () Water Meter / Master Elec Meter RUBS Indiv Est Res for Repl/Unit/Yr Yield Maintenance Tax Assessment Taxes $515,312 $15,142 Roof Style Pitched Est Future Tax Assessment $745,068 HVAC System Indiv Est Future Taxes $21,893 INCOME PRO-FORMA INCOME Current Street Rent with a 5% Increase 110,691 Estimated Gross Scheduled Income 110,691 Estimated Loss to Lease (2% of Total Street Rent) (2,214) 2% Estimated Vacancy (1% of Total Street Rent) (1,107) 1% Estimated Concessions and Other Rental Losses (1% of Total Street Rent) (1,107) 1% Estimated Utilities Income Estimated Other Income 1,604 Estimated Total Rental Income 111,284 ESTIMATED TOTAL PRO-FORMA INCOME 111,284 Oct '13 thru Dec '13 Income Fixed Expenses MODIFIED ACTUALS $9,224 / Mo $9,224 / Mo 3,416 $342 / Unit / Yr $160 / Unit / Yr Fixed Expenses Estimated Fixed Expenses Taxes Insurance $13,738 $3,459 $1,374 per Unit $346 per Unit 12/03 OS $21,893 $3,459 $2,189 per Unit $346 per Unit Tax Rate & Future Assessment #### Water & Sewer $4,114 $411 per Unit $4,114 $411 per Unit Gas $860 $86 per Unit $860 $86 per Unit $9,274 / Mo $1,720 per Unit $2,535 per Unit Total Utilities 5,557 $556 per Unit 5,557 $556 per Unit Other Expenses Other Expenses Estimated Other Expenses General & Admin & Marketing R&M (including maint salaries) Labor Costs Contract Services $1,425 $13,802 $3,714 $2,351 $143 per Unit $1,380 per Unit $371 per Unit $235 per Unit $2,600 $5,000 $3,714 $2,351 $260 per Unit $500 per Unit $371 per Unit $235 per Unit Management Fees $3, % $397 per Unit Added by Broker $4, % $417 per Unit Total Other Expense 25,267 $2,527 per Unit 17,838 $1,784 per Unit Note: $47, of CapEx have been removed from the Repairs & Maintenance section of Expenses $105,977 PRO-FORMA EXPENSE December YTD Expenses Estimated Expenses Total Fixed Expense 17,197 25,352 Utilities Utilities Estimated Utilities Electricity $583 $58 per Unit $583 $58 per Unit Total Operating Expense 48,021 $4,802 per Unit 48,747 $4,875 per Unit Reserve for Replacement 2,000 $200 per Unit 2,000 $200 per Unit Total Expense 50,021 $5,002 per Unit 50,747 $5,075 per Unit Net Operating Income (Actual Underwriting) 55,957 60,537 NOTES: ACTUALS: Actuals are based on owner's 12/13 YTD operating statement. PRO FORMA: Insurance is estimated. Taxes are rate and estimated future assessment. All other expenses are estimated. DISCLAIMER: The information contained herein has been obtained from sources that we deem reliable. We have no reason to doubt the accuracy of the information, but we have not verified it and make no guaranty, warranty or representation about it. It is your resonsibility to independently confirm its accuracy and completeness. We have not determined whether the property complies with deed restrictions or any city licensing or ordinances including life safety compliance or if the property lies within a flood plain. THE PROSPECTIVE BUYER SHOULD CAREFULLY VERIFY EACH ITEM OF INCOME OR EXPENSE AND PERFORM OR HAVE PERFORMED ANY INSPECTIONS TO VERIFY POSSIBLE CONTAMINATION BY ASBESTOS, LEAD PAINT, MOLD OR ANY OTHER HAZARDOUS SUBSTANCES. The owner reserves the right to withdraw this listing or change the price at anytime without notice during the marketing period. THIS IS A BROKER PRICE OPINION OR COMPARATIVE MARKET ANALYSIS AND SHOULD NOT BE CONSIDERED AN APPRAISAL. In making any decision that relies upon my work, you should know that I have not followed the guidelines for development or an appraisal or analysis contained in the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation. 2/28/2014 MidtownPortfolio-Summary.xlsx

13 4414 YUPON ST., HOUSTON, TX Keymap: 493W Construction Quality: B+ PROPERTY INFORMATION AMENITIES EXISTING MORTGAGE TAXING AUTHORITY - HARRIS COUNTY Age: 1960 Access Gates Park & Ride Nearby Mortgage Balance ACCT NO: Elec Meter: Indiv Cable Ready Shuttle Route Amortization Houston ISD $ A/C Type: Wall Units Ceiling Fans School Bus Pick-up P & I Harris County $ Water: RUBS Laundry Rooms Gated Parking Type Harris County Flood Control $ Wiring: Copper Mini Blinds Assumable Port of Houston Authority $ Roof: Pitched Monthly Escrow Harris County Hospital District $ Paving: Concrete Origination Date Harris County Education Dept $ Materials: Brick/Wood Due Date Houston Community College $ # of Stories: 2 Interest Rate City of Houston $ Parking: Yield Maintenance HC ID 11 $ Buildings: 1 Transfer Fee Tax Rate/$100 $ Units/Acre: *In Select Units Tax Assessment $515,312 COLLECTIONS 3 Mo Avg $ 8,831 Jan $ 9,225 Feb $ 6,931 Mar $ 11,139 Apr $ 9,209 May $ 10,133 June $ 7,180 July $ 8,044 Aug $ 6,642 Sept $ 8,963 Oct $ 8,889 Nov $ 8,624 Dec $ 8,982 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $- Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec PLEASE DO NOT VISIT THE SITE WITHOUT AN APPOINTMENT MADE THROUGH THE BROKER. PROPERTY HIGHLIGHTS The 4414 Yupon Apartments, is a two story, garden-style, apartment community located in the Montrose submarket of Houston,Texas. The asset was originally built in Residents enjoy ample amenities which include: mini-blinds, kitchen pantries, ceiling fans, laundry facilities, a beautifully landscaped courtyard and walk-in closets. Currently there are no leasing concessions. The asset is covered under a blanket insurance policy that has better than full replacement coverage and a 2% deductible for wind, named storms and full liability. The property is in excellent condition.. Disclaimer: The information contained in this Memorandum reflects material from sources deemed to be reliable, including data such as operating statements, rent roll, etc. provided by the Owner. Notwithstanding, KET Enterprises Incorporated does not make any warranties about the information contained in this marketing package. Every prospective purchaser should verify the information and rely on his accountants or attorneys for legal and tax advice. This offer is As-Is, Where-Is. Answers to specific inquiries will have to be supplied by the Owner and are available upon request. Rates of return vary daily. No representations are made concerning environmental issues, if any. THIS IS A BROKER PRICE OPINION OR COMPARATIVE MARKET ANALYSIS AND SHOULD NOT BE CONSIDERED AN APPRAISAL. In making any decision that relies upon my work, you should know that I have not followed the guidelines for development or an appraisal or analysis contained in the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation.

14 4414 YUPON ST., HOUSTON, TX Unit Mix UNIT MIX JAN 2014 Unit # Type No. Units Sq Ft Total SqFt Market Rent Total Rent Rent/SF 1 1 Bed/1 Bath $895 $895 $ Bed/1 Bath $850 $850 $ Bed/1 Bath $895 $895 $ Bed/1 Bath $895 $895 $ Bed/1 Bath $1,075 $1,075 $ Bed/1 Bath $815 $815 $ Bed/1 Bath $775 $775 $ Bed/1 Bath $895 $895 $ Bed/1 Bath $795 $795 $ Bed/1 Bath $895 $895 $1.81 TOTALS AND AVERAGES Total Units ,950 $879 $8,785 $1.77 Sq. Ft. Total Sq. Feet Rent/Unit Total Rent Rent/ SF Apartment Features Renovated Interiors Community Features Great Inner Loop Location Gated Community w/off Street Parking Onsite Laundry Facility Sprinkler System

15 1219 BANKS ST., HOUSTON, TX Physical Information Financial Information Proposed Loan Parameters Operating Information Number of Units 7 Asking Market Est New 70% of Asking Est Mkt Rent (Dec-13) $9,770 Avg Unit Size 821 Price Per Unit N/A Amortization (months) Estimated Collections $10,040 Net Rentable Area 5,748 Price Per Sq. Ft. N/A Debt Service Physical Occ (Dec-13) 100% Land Area (Acres) 0.13 Stabilized NOI $73,969 Monthly P & I Est Ins per Unit per Yr $499 Units per Acre Interest Rate Property Tax Information Date Built 1962 Date Due Tax Rate () Water Meter / Master Elec Meter RUBS Indiv Est Res for Repl/Unit/Yr Yield Maintenance Tax Assessment Taxes $568,120 $15,248 Roof Style Flat Est Future Tax Assessment $910,388 HVAC System Indiv *Current Value is Stabilized Value less Rehab, Profit and Carry Est Future Taxes $24,434 INCOME PRO-FORMA INCOME Current Street Rent with a 5% Increase 123,102 Estimated Gross Scheduled Income 123,102 Estimated Loss to Lease (2% of Total Street Rent) (2,462) 2% Estimated Vacancy (1% of Total Street Rent) (1,231) 1% Estimated Concessions and Other Rental Losses (1% of Total Street Rent) (1,231) 1% Estimated Utilities Income Estimated Other Income 1,112 Estimated Total Rental Income 122,692 ESTIMATED TOTAL PRO-FORMA INCOME 122,692 Oct '13 thru Dec '13 Income Fixed Expenses MODIFIED ACTUALS $120,476 PRO-FORMA EXPENSE December YTD Expenses Estimated Expenses $10,259 / Mo $10,259 / Mo 3,403 $486 / Unit / Yr $159 / Unit / Yr Fixed Expenses Estimated Fixed Expenses Taxes $15,237 $2,177 per Unit 12/13 OS $24,434 $3,491 per Unit Tax Rate & Future Assessment Insurance $3,493 $499 per Unit 2014 Insurance quote $3,493 $499 per Unit 2014 Insurance quote Total Fixed Expense 18,731 27,928 Utilities Utilities Estimated Utilities Electricity $526 $75 per Unit $526 $75 per Unit Water & Sewer $6,428 $918 per Unit $6,428 $918 per Unit Gas $961 $137 per Unit $961 $137 per Unit $10,224 / Mo $2,676 per Unit $3,990 per Unit Total Utilities 7,914 $1,131 per Unit 7,914 $1,131 per Unit Other Expenses Other Expenses Estimated Other Expenses General & Admin & Marketing R&M (including maint salaries) Labor Costs Contract Services $303 $13,589 $2,600 $150 $43 per Unit $1,941 per Unit $371 per Unit $21 per Unit Higher than normal Added by Broker $1,820 $2,310 $2,600 $150 $260 per Unit $330 per Unit $371 per Unit $21 per Unit Management Fees $4, % $645 per Unit Added by Broker $4, % $657 per Unit Total Other Expense 21,160 $3,023 per Unit 11,481 $1,640 per Unit Total Operating Expense 47,805 $6,829 per Unit 47,323 $6,760 per Unit Reserve for Replacement 1,400 $200 per Unit 1,400 $200 per Unit Total Expense 49,205 $7,029 per Unit 48,723 $6,960 per Unit Net Operating Income (Actual Underwriting) 71,271 73,969 NOTES: ACTUALS: Actuals are based on owner's 12/13 YTD operating statement. Taxes were estimated by the Broker. PRO FORMA: Insurance is estimated. Taxes are rate and estimated future assessment. All other expenses are estimated. DISCLAIMER: The information contained herein has been obtained from sources that we deem reliable. We have no reason to doubt the accuracy of the information, but we have not verified it and make no guaranty, warranty or representation about it. It is your resonsibility to independently confirm its accuracy and completeness. We have not determined whether the property complies with deed restrictions or any city licensing or ordinances including life safety compliance or if the property lies within a flood plain. THE PROSPECTIVE BUYER SHOULD CAREFULLY VERIFY EACH ITEM OF INCOME OR EXPENSE AND PERFORM OR HAVE PERFORMED ANY INSPECTIONS TO VERIFY POSSIBLE CONTAMINATION BY ASBESTOS, LEAD PAINT, MOLD OR ANY OTHER HAZARDOUS SUBSTANCES. The owner reserves the right to withdraw this listing or change the price at anytime without notice during the marketing period. THIS IS A BROKER PRICE OPINION OR COMPARATIVE MARKET ANALYSIS AND SHOULD NOT BE CONSIDERED AN APPRAISAL. In making any decision that relies upon my work, you should know that I have not followed the guidelines for development or an appraisal or analysis contained in the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation. 2/28/2014 MidtownPortfolio-Summary.xlsx

16 1219 BANKS ST., HOUSTON, TX Keymap: 493W Construction Quality: B+ PROPERTY INFORMATION AMENITIES EXISTING MORTGAGE TAXING AUTHORITY - HARRIS COUNTY Age: 1962 Access Gates Park & Ride Nearby Mortgage Balance ACCT NO: Elec Meter: Indiv Cable Ready Shuttle Route Amortization Houston ISD $ A/C Type: HVAC Ceiling Fans School Bus Pick-up P & I Harris County $ Water: RUBS Laundry Rooms 1 Enclosed Garage Type Harris County Flood Control $ Wiring: Copper Mini Blinds Assumable Port of Houston Authority $ Roof: Flat Monthly Escrow Harris County Hospital District $ Paving: Concrete Origination Date Harris County Education Dept $ Materials: Brick/Wood Due Date Houston Community College $ # of Stories: 2 Interest Rate City of Houston $ Parking: Garage Yield Maintenance HC ID 11 $ Buildings: 1 Transfer Fee Tax Rate/$100 $ Units/Acre: *In Select Units Tax Assessment $568,120 COLLECTIONS 3 Mo avg $ 10,040 Jan $ 13,422 Feb $ 9,469 Mar $ 11,627 Apr $ 10,308 May $ 12,031 June $ 8,944 July $ 11,330 Aug $ 9,063 Sept $ 9,746 Oct $ 10,111 Nov $ 10,040 Dec $ 9,968 $16,000 $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $- Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec PLEASE DO NOT VISIT THE SITE WITHOUT AN APPOINTMENT MADE THROUGH THE BROKER. PROPERTY HIGHLIGHTS The 1219 Banks Apartments, is a two story, garden-style, apartment community located in the Montrose submarket of Houston,Texas. The asset was originally built in Residents enjoy ample amenities which include: mini-blinds, kitchen pantries, ceiling fans, laundry facilities,a full appliance package, 1 enclosed garage space and a beautifully landscaped courtyard. Currently there are no leasing concessions. The asset is covered under a blanket insurance policy that has better than full replacement coverage and a 2% deductible for wind, named storms and full liability.. Disclaimer: The information contained in this Memorandum reflects material from sources deemed to be reliable, including data such as operating statements, rent roll, etc. provided by the Owner. Notwithstanding, KET Enterprises Incorporated does not make any warranties about the information contained in this marketing package. Every prospective purchaser should verify the information and rely on his accountants or attorneys for legal and tax advice. This offer is As-Is, Where-Is. Answers to specific inquiries will have to be supplied by the Owner and are available upon request. Rates of return vary daily. No representations are made concerning environmental issues, if any. THIS IS A BROKER PRICE OPINION OR COMPARATIVE MARKET ANALYSIS AND SHOULD NOT BE CONSIDERED AN APPRAISAL. In making any decision that relies upon my work, you should know that I have not followed the guidelines for development or an appraisal or analysis contained in the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation.

17 1219 BANKS ST., HOUSTON, TX Unit Mix UNIT MIX JAN 2014 Unit # Type No. Units Sq Ft Total SqFt Market Rent Total Rent Rent/SF 1 1 Bed/1 Bath 1 1,007 1,007 $1,550 $1,550 $ Bed/1 Bath $1,295 $1,295 $ Bed/1 Bath $1,250 $1,250 $ Bed/1 Bath $1,250 $1,250 $ Bed/1 Bath $1,650 $1,650 $ Bed/1 Bath $1,225 $1,225 $ Bed/1 Bath $1,550 $1,550 $1.86 TOTALS AND AVERAGES Total Units ,748 $1,396 $9,770 $1.70 Sq. Ft. Total Sq. Feet Rent/Unit Total Rent Rent/ SF % of Units by Type 57% 43% 2 Bed/1 Bath 1 Bed/1 Bath Apartment Features Community Features Full Appliance Package Renovated Interiors Great Inner Loop Location Gated Community w/off Street Parking Onsite Laundry Facility Sprinkler System One enclosed garage

18 NORFOLK & 1919 PORTSMOUTH, HOUSTON, TX Physical Information Financial Information Existing Loan Parameters Operating Information Number of Units 30 Asking Market Mortgage Balance $1,989,644 Est Mkt Rent (Dec-13) $40,330 Avg Unit Size 994 Price Per Unit N/A Amortization (months) 360 Estimated Collections $39,592 Net Rentable Area 29,807 Price Per Sq. Ft. N/A Debt Service $131,819 Physical Occ (Dec-13) 100% Land Area (Acres) 0.69 Stabilized NOI $280,397 Monthly P & I $10,985 Est Ins per Unit per Yr $515 Units per Acre Interest Rate 5.22% Property Tax Information Date Built 1961/1965 Date Due 8/1/2023 Tax Rate () Water Meter / Master Elec Meter RUBS Sub-Metered Est Res for Repl/Unit/Yr Yield Maintenance Yes Tax Assessment Taxes $2,080,266 $53,493 Roof Style Flat Est Future Tax Assessment $3,451,035 HVAC System Sub-Metered Est Future Taxes $88,742 INCOME PRO-FORMA INCOME Current Street Rent with a 5% Increase 508,158 Estimated Gross Scheduled Income 508,158 Estimated Loss to Lease (2% of Total Street Rent) (10,163) 2% Estimated Vacancy (1% of Total Street Rent) (5,082) 1% Estimated Concessions and Other Rental Losses (1% of Total Street Rent) (5,082) 1% Estimated Utilities Income Estimated Other Income 6,299 Estimated Total Rental Income 525,232 ESTIMATED TOTAL PRO-FORMA INCOME 525,232 Jan '13 thru Dec '13 Income Fixed Expenses MODIFIED ACTUALS $42,347 / Mo $42,347 / Mo 31,101 $1,037 / Unit / Yr $210 / Unit / Yr Fixed Expenses Estimated Fixed Expenses Taxes $53,493 $1,783 per Unit 12/13 OS $88,742 $2,958 per Unit Tax Rate & Future Assessment Insurance $15,458 $515 per Unit 2014 Insurance Quote $15,458 $515 per Unit 2014 Insurance Quote Water & Sewer $16,011 $534 per Unit $16,011 $534 per Unit Gas $5,097 $170 per Unit $5,097 $170 per Unit $43,769 / Mo $2,298 per Unit $3,473 per Unit Total Utilities 45,059 $1,502 per Unit 45,059 $1,502 per Unit Other Expenses Other Expenses Estimated Other Expenses General & Admin & Marketing R&M (including maint salaries) Labor Costs Contract Services $8,571 $43,647 $11,143 $9,015 $286 per Unit $1,455 per Unit $371 per Unit $300 per Unit $7,800 $15,000 $28,500 $9,015 $260 per Unit $500 per Unit $950 per Unit $300 per Unit Management Fees $17, % $594 per Unit Added by Broker $26, % $875 per Unit Total Other Expense 90,192 $3,006 per Unit 86,576 $2,886 per Unit Note: $43, of CapEx have been removed from the Repairs & Maintenance section of Expenses $475,106 PRO-FORMA EXPENSE December YTD Expenses Estimated Expenses Total Fixed Expense 68, ,200 Utilities Utilities Estimated Utilities Electricity $23,951 $798 per Unit $23,951 $798 per Unit Total Operating Expense 204,202 $6,807 per Unit 235,835 $7,861 per Unit Reserve for Replacement 6,000 $200 per Unit 9,000 $300 per Unit Total Expense 210,202 $7,007 per Unit 244,835 $8,161 per Unit Net Operating Income (Actual Underwriting) 264, ,397 NOTES: ACTUALS: Actuals are based on owner's 12/13 YTD operating statement. PRO FORMA: Insurance is estimated. Taxes are rate and estimated future assessment. All other expenses are estimated. DISCLAIMER: The information contained herein has been obtained from sources that we deem reliable. We have no reason to doubt the accuracy of the information, but we have not verified it and make no guaranty, warranty or representation about it. It is your resonsibility to independently confirm its accuracy and completeness. We have not determined whether the property complies with deed restrictions or any city licensing or ordinances including life safety compliance or if the property lies within a flood plain. THE PROSPECTIVE BUYER SHOULD CAREFULLY VERIFY EACH ITEM OF INCOME OR EXPENSE AND PERFORM OR HAVE PERFORMED ANY INSPECTIONS TO VERIFY POSSIBLE CONTAMINATION BY ASBESTOS, LEAD PAINT, MOLD OR ANY OTHER HAZARDOUS SUBSTANCES. The owner reserves the right to withdraw this listing or change the price at anytime without notice during the marketing period. THIS IS A BROKER PRICE OPINION OR COMPARATIVE MARKET ANALYSIS AND SHOULD NOT BE CONSIDERED AN APPRAISAL. In making any decision that relies upon my work, you should know that I have not followed the guidelines for development or an appraisal or analysis contained in the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation. 2/28/2014 MidtownPortfolio-Summary.xlsx

19 NORFOLK & 1919 PORTSMOUTH, HOUSTON, TX Keymap: 492Z Construction Quality: B+ PROPERTY INFORMATION AMENITIES EXISTING MORTGAGE TAXING AUTHORITY - HARRIS COUNTY Age: 1961/1965 Access Gates Park & Ride Nearby Mortgage Balance $1,989,644 ACCT NO: Elec Meter: Sub-Metered Cable Ready Pool Amortization 360 Houston ISD $ A/C Type: HVAC Ceiling Fans School Bus Pick-up P & I $10,985 Harris County $ Water: Master/All Bills Paid Mini Blinds Shuttle Route Type Fixed Harris County Flood Control $ Wiring: Copper Covered Parking Assumable Yes Port of Houston Authority $ Roof: Flat Monthly Escrow $7,029 Harris County Hospital District $ Paving: Concrete Origination Date 9/1/ Harris County Education Dept $ Materials: Brick/Wood Due Date 8/1/2023 Houston Community College $ # of Stories: 2 Interest Rate 5.22% City of Houston $ Parking: Yield Maintenance Yes HCID ID 11 $ Buildings: 5 Transfer Fee 1%+app+legal Tax Rate/$100 $ Units/Acre: *In Select Units Tax Assessment $2,080,266 COLLECTIONS 3 Mo $ 42,214 Jan $ 36,475 Feb $ 40,649 Mar $ 40,111 Apr $ 27,857 May $ 50,130 June $ 36,951 July $ 40,405 Aug $ 31,348 Sept $ 44,538 Oct $ 41,427 Nov $ 42,745 Dec $ 42,469 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $- Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec PLEASE DO NOT VISIT THE SITE WITHOUT AN APPOINTMENT MADE THROUGH THE BROKER. PROPERTY HIGHLIGHTS The Norfolk & 1919 Portsmouth Apartments, is a two story, garden-style, apartment community located in the Montrose submarket of Houston,Texas. The asset was originally built in 1961/1965. Residents enjoy ample amenities which include: mini-blinds, kitchen pantries, ceiling fans,a full appliance package a beautifully landscaped courtyard and a swimming pool. Currently there are no leasing concessions. The asset is covered under a blanket insurance policy that has better than full replacement coverage and a 2% deductible for wind, named storms and full liability. Highly rehabbed asset in excellent condition.. Disclaimer: The information contained in this Memorandum reflects material from sources deemed to be reliable, including data such as operating statements, rent roll, etc. provided by the Owner. Notwithstanding, KET Enterprises Incorporated does not make any warranties about the information contained in this marketing package. Every prospective purchaser should verify the information and rely on his accountants or attorneys for legal and tax advice. This offer is As-Is, Where-Is. Answers to specific inquiries will have to be supplied by the Owner and are available upon request. Rates of return vary daily. No representations are made concerning environmental issues, if any. THIS IS A BROKER PRICE OPINION OR COMPARATIVE MARKET ANALYSIS AND SHOULD NOT BE CONSIDERED AN APPRAISAL. In making any decision that relies upon my work, you should know that I have not followed the guidelines for development or an appraisal or analysis contained in the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation.

20 NORFOLK & 1919 PORTSMOUTH, HOUSTON, TX Unit Mix UNIT MIX JAN 2014 Unit # Type No. Units Sq Ft Total SqFt Market Rent Total Rent Rent/SF 1 1 Bed/1 Bath $925 $925 $ Bed/1 Bath $1,195 $1,195 $ Bed/1 Bath $1,150 $1,150 $ Bed/1 Bath $1,595 $1,595 $ Bed/1 Bath $1,595 $1,595 $ Bed/1 Bath $895 $895 $ Bed/1 Bath $1,225 $1,225 $ Bed/1 Bath $925 $925 $ Bed/1 Bath $1,195 $1,195 $ Bed/1 Bath $1,395 $1,395 $ Bed/1 Bath $1,195 $1,195 $ Bed/1 Bath $1,095 $1,095 $ Bed/1 Bath $1,195 $1,195 $ Bed/2 Bath 1 1,600 1,600 $1,545 $1,545 $ Bed/1 Bath $1,295 $1,295 $ Bed/1 Bath $1,095 $1,095 $ Bed/2.5 Bath 1 1,156 1,156 $1,650 $1,650 $ Bed/2.5 Bath 1 1,156 1,156 $1,295 $1,295 $ Bed/2.5 Bath 1 1,156 1,156 $1,750 $1,750 $ Bed/2.5 Bath 1 1,156 1,156 $1,350 $1,350 $ Bed/2.5 Bath 1 1,156 1,156 $1,595 $1,595 $ Bed/2.5 Bath 1 1,156 1,156 $1,795 $1,795 $ Bed/1 Bath $1,250 $1,250 $ Bed/1 Bath $1,095 $1,095 $ Bed/2.5 Bath 1 1,156 1,156 $1,595 $1,595 $ Bed/2.5 Bath 1 1,156 1,156 $1,550 $1,550 $ Bed/2.5 Bath 1 1,156 1,156 $1,695 $1,695 $ Bed/2.5 Bath 1 1,156 1,156 $1,395 $1,395 $ Bed/2.5 Bath 1 1,156 1,156 $1,650 $1,650 $ Bed/2.5 Bath 1 1,156 1,156 $1,350 $1,350 $ ,807 $1,351 $40,530 $1.36 TOTALS AND AVERAGES Total Units Sq. Ft. Total Sq. Feet Rent/Unit Total Rent Rent/ SF 3% Apartment/Community Features 40% 7% 1 Bed/1 Bath 2 Bed/1 Bath 50% 2 Bed/2.5 Bath 2 Bed/2 Bath % of Units by Type Full Appliance Package Renovated Interiors Great Inner Loop Location Gated Community w/covered Parking Onsite Laundry Facility Swimming Pool

21 1903 and 1917 PORTSMOUTH, HOUSTON, TX Physical Information Financial Information Existing Loan Parameters Operating Information Number of Units 29 Asking Market Mortgage Balance $2,171,064 Est Mkt Rent (Dec-13) $40,825 Avg Unit Size 835 Price Per Unit N/A Amortization (months) 360 Estimated Collections $38,929 Net Rentable Area 24,222 Price Per Sq. Ft. N/A Debt Service $143,839 Physical Occ (Dec-13) 97% Land Area (Acres) 0.66 Stabilized NOI $269,321 Monthly P & I $11,987 Est Ins per Unit per Yr $546 Units per Acre Interest Rate 5.22% Property Tax Information Date Built 1964 Date Due 8/1/2023 Tax Rate () Water Meter / Master Elec Meter RUBS Indiv Est Res for Repl/Unit/Yr Yield Maintenance $200 Yes Tax Assessment Taxes $1,515,000 $40,662 Roof Style Pitched Est Future Tax Assessment $3,314,715 HVAC System Indiv Est Future Taxes $88,966 INCOME PRO-FORMA INCOME Current Street Rent with a 5% Increase 514,395 Estimated Gross Scheduled Income 514,395 Estimated Loss to Lease (2% of Total Street Rent) (10,288) 2% Estimated Vacancy (3% of Total Street Rent) (15,432) 3% Estimated Concessions and Other Rental Losses (2% of Total Street Rent) (10,288) 2% Estimated Utilities Income Estimated Other Income 3,689 Estimated Total Rental Income 484,571 ESTIMATED TOTAL PRO-FORMA INCOME 484,571 Oct '13 thru Dec '13 Income Fixed Expenses MODIFIED ACTUALS $42,866 / Mo $42,866 / Mo 2,495 $86 / Unit / Yr $127 / Unit / Yr Fixed Expenses Estimated Fixed Expenses Taxes $40,662 $1,402 per Unit 12/13 OS $88,966 $3,068 per Unit Tax Rate & Future Assessment Insurance $15,833 $546 per Unit 2014 Insurance Quote $15,833 $546 per Unit 2014 Insurance Quote Water & Sewer $13,888 $479 per Unit $13,888 $479 per Unit Gas $4,598 $159 per Unit $4,598 $159 per Unit $40,381 / Mo $1,948 per Unit $3,614 per Unit Total Utilities 47,702 $1,645 per Unit 47,702 $1,645 per Unit Other Expenses Other Expenses Estimated Other Expenses General & Admin & Marketing R&M (including maint salaries) Labor Costs Contract Services $4,581 $34,284 $10,771 $5,967 $158 per Unit $1,182 per Unit $371 per Unit $206 per Unit $7,540 $14,500 $10,771 $5,967 $260 per Unit $500 per Unit $371 per Unit $206 per Unit Management Fees $17, % $604 per Unit Added by Broker $18, % $627 per Unit Total Other Expense 73,121 $2,521 per Unit 56,950 $1,964 per Unit Note: $9, of CapEx have been removed from the Repairs & Maintenance section of Expenses $467,148 PRO-FORMA EXPENSE December YTD Expenses Estimated Expenses Total Fixed Expense 56, ,799 Utilities Utilities Estimated Utilities Electricity $29,216 $1,007 per Unit $29,216 $1,007 per Unit Total Operating Expense 177,319 $6,114 per Unit 209,451 $7,222 per Unit Reserve for Replacement 5,800 $200 per Unit 5,800 $200 per Unit Total Expense 183,119 $6,314 per Unit 215,251 $7,422 per Unit Net Operating Income (Actual Underwriting) 284, ,321 NOTES: ACTUALS: Actuals are based on owner's 12/13 YTD operating statement. PRO FORMA: Insurance is estimated. Taxes are rate and estimated future assessment. All other expenses are estimated. DISCLAIMER: The information contained herein has been obtained from sources that we deem reliable. We have no reason to doubt the accuracy of the information, but we have not verified it and make no guaranty, warranty or representation about it. It is your resonsibility to independently confirm its accuracy and completeness. We have not determined whether the property complies with deed restrictions or any city licensing or ordinances including life safety compliance or if the property lies within a flood plain. THE PROSPECTIVE BUYER SHOULD CAREFULLY VERIFY EACH ITEM OF INCOME OR EXPENSE AND PERFORM OR HAVE PERFORMED ANY INSPECTIONS TO VERIFY POSSIBLE CONTAMINATION BY ASBESTOS, LEAD PAINT, MOLD OR ANY OTHER HAZARDOUS SUBSTANCES. The owner reserves the right to withdraw this listing or change the price at anytime without notice during the marketing period. THIS IS A BROKER PRICE OPINION OR COMPARATIVE MARKET ANALYSIS AND SHOULD NOT BE CONSIDERED AN APPRAISAL. In making any decision that relies upon my work, you should know that I have not followed the guidelines for development or an appraisal or analysis contained in the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation. 2/28/2014 MidtownPortfolio-Summary.xlsx

22 1903 and 1917 PORTSMOUTH, HOUSTON, TX Keymap: 492Z Construction Quality: B+ PROPERTY INFORMATION AMENITIES EXISTING MORTGAGE TAXING AUTHORITY - HARRIS COUNTY Age: 1964 Access Gates Park & Ride Nearby Mortgage Balance $2,171,064 ACCT NO: Elec Meter: Master Cable Ready Pool Amortization(months) 360 Houston ISD $ A/C Type: Chill Water Ceiling Fans School Bus Pick-up P & I $11,987 Harris County $ Water: Master/All Bills Paid Mini Blinds Shuttle Route Type Fixed Harris County Flood Control $ Wiring: Copper Covered Parking Assumable Yes Port of Houston Authority $ Roof: Pitched Monthly Escrow $5,434 Harris County Hospital District $ Paving: Concrete Origination Date 9/1/ Harris County Education Dept $ Materials: Brick/Wood Due Date 8/1/2023 Houston Community College $ # of Stories: 2 Interest Rate 5.22% City of Houston $ Parking: Yield Maintenance Yes HC ID 11 $ Buildings: 2 Transfer Fee 1%+app+legal Tax Rate/$100 $ Units/Acre: *In Select Units Tax Assessment $1,515,000 COLLECTIONS 3 Mo Avg $ 38,929 Jan $ 36,843 Feb $ 41,549 Mar $ 39,717 Apr $ 38,794 May $ 42,496 June $ 36,659 July $ 34,676 Aug $ 28,025 Sept $ 38,823 Oct $ 38,068 Nov $ 40,079 Dec $ 38,640 $45,000 $40,000 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $- Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec PLEASE DO NOT VISIT THE SITE WITHOUT AN APPOINTMENT MADE THROUGH THE BROKER. PROPERTY HIGHLIGHTS The 1903 Portsmouth Apartments, is a two story, garden-style, apartment community located in the Montrose submarket of Houston,Texas. The asset was originally built in 1961/1965. Residents enjoy ample amenities which include: mini-blinds, kitchen pantries, ceiling fans, a full appliance package a beautifully landscaped courtyard and a swimming pool. Currently there are no leasing concessions. Asset is "All Bills Paid". The asset is covered under a blanket insurance policy that has better than full replacement coverage and a 2% deductible for wind, named storms and full liability. The property is in excellent condition.. Disclaimer: The information contained in this Memorandum reflects material from sources deemed to be reliable, including data such as operating statements, rent roll, etc. provided by the Owner. Notwithstanding, KET Enterprises Incorporated does not make any warranties about the information contained in this marketing package. Every prospective purchaser should verify the information and rely on his accountants or attorneys for legal and tax advice. This offer is As-Is, Where-Is. Answers to specific inquiries will have to be supplied by the Owner and are available upon request. Rates of return vary daily. No representations are made concerning environmental issues, if any. THIS IS A BROKER PRICE OPINION OR COMPARATIVE MARKET ANALYSIS AND SHOULD NOT BE CONSIDERED AN APPRAISAL. In making any decision that relies upon my work, you should know that I have not followed the guidelines for development or an appraisal or analysis contained in the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation.

23 1903 and 1917 PORTSMOUTH, HOUSTON, TX Unit Mix UNIT MIX JAN 2014 Unit # Type No. Units Sq Ft Total SqFt Market Rent Total Rent Rent/SF Storage 1 Bed/1 Bath $0 $0 $ Bed/1 Bath $1,195 $1,195 $ Bed/1 Bath $1,295 $1,295 $ Bed/1 Bath $1,195 $1,195 $ Bed/1 Bath $1,195 $1,195 $ Bed/1 Bath $1,295 $1,295 $ Bed/1 Bath $1,125 $1,125 $ Bed/1 Bath $1,295 $1,295 $ Bed/1 Bath $1,225 $1,225 $ Bed/1 Bath $1,050 $1,050 $ Bed/1 Bath $1,695 $1,695 $ Bed/2 Bath $1,500 $1,500 $ Bed/2 Bath $1,475 $1,475 $ Bed/2 Bath $1,495 $1,495 $ Bed/1 Bath $950 $950 $ Bed/2 Bath $1,650 $1,650 $ Bed/1 Bath $1,350 $1,350 $ Bed/1 Bath $1,225 $1,225 $ Bed/1 Bath $1,125 $1,125 $ Bed/1 Bath $1,250 $1,250 $ Bed/1.5 Bath 1 1,020 1,020 $1,595 $1,595 $ Bed/1.5 Bath $1,695 $1,695 $ Bed/1.5 Bath $1,795 $1,795 $ Bed/1.5 Bath 1 1,020 1,020 $1,495 $1,495 $ Bed/1.5 Bath 1 1,020 1,020 $1,795 $1,795 $ Bed/1.5 Bath $1,525 $1,525 $ Bed/1.5 Bath $1,450 $1,450 $ Bed/1.5 Bath $1,595 $1,595 $ Bed/1.5 Bath $1,525 $1,525 $ Bed/1.5 Bath $1,550 $1,550 $ ,222 $1,400 $40,605 $1.68 TOTALS AND AVERAGES Total Units Sq. Ft. Total Sq. Feet Rent/Unit Total Rent Rent/ SF 4% Apartment/Community Features 1 Bed/1 Bath 41% 48% 1 Bed/1 Bath 1 Bed/1 Bath Full Appliance Package Renovated Interiors 2 Bed/2 Bath Great Inner Loop Location 7% Gated Community w/covered Parking % of Units by Type Onsite Laundry Facility Swimming Pool

24 2322 RICHTON HOUSTON, TX Physical Information Financial Information Existing Loan Parameters Operating Information Number of Units 20 Asking Market Mortgage Balance $838,322 Est Mkt Rent (Dec-13) $22,640 Avg Unit Size 612 Price Per Unit N/A Amortization (months) 360 Estimated Collections $19,563 Net Rentable Area 12,236 Price Per Sq. Ft. N/A Debt Service $55,541 Physical Occ (Dec-13) 95% Land Area (Acres) 0.37 Stabilized NOI $158,092 Monthly P & I $4,628 Est Ins per Unit per Yr $741 Units per Acre Interest Rate 5.22% Property Tax Information Date Built 1962 Date Due 8/1/2023 Tax Rate () Water Meter / Master Elec Meter RUBS Indiv Est Res for Repl/Unit/Yr Yield Maintenance $250 Yes Tax Assessment Taxes $1,097,045 $30,864 Roof Style Flat Est Future Tax Assessment $1,945,744 HVAC System Indiv Est Future Taxes $54,741 INCOME PRO-FORMA INCOME Current Street Rent with a 5% Increase 285,264 Estimated Gross Scheduled Income 285,264 Estimated Loss to Lease (2% of Total Street Rent) (5,705) 2% Estimated Vacancy (1% of Total Street Rent) (2,853) 1% Estimated Concessions and Other Rental Losses (2% of Total Street Rent) (5,705) 2% Estimated Utilities Income Estimated Other Income 2,474 Estimated Total Rental Income 278,684 ESTIMATED TOTAL PRO-FORMA INCOME 278,684 Jan '13 thru Dec '13 Income Fixed Expenses MODIFIED ACTUALS $23,772 / Mo $23,772 / Mo 5,209 $260 / Unit / Yr $124 / Unit / Yr Fixed Expenses Estimated Fixed Expenses Taxes $30,864 $1,543 per Unit Tax Rate & Future Assessment $54,741 $2,737 per Unit Tax Rate & Future Assessment Insurance $14,828 $741 per Unit 2014 Insurance Quote $14,828 $741 per Unit 2014 Insurance Quote Water & Sewer $7,020 $351 per Unit $7,020 $351 per Unit Gas $2,225 $111 per Unit $2,225 $111 per Unit $23,224 / Mo $2,285 per Unit $3,478 per Unit Total Utilities 12,702 $635 per Unit 12,702 $635 per Unit Other Expenses Other Expenses Estimated Other Expenses General & Admin & Marketing R&M (including maint salaries) Labor Costs Contract Services $7,368 $24,180 $7,429 $1,242 $368 per Unit $1,209 per Unit $371 per Unit $62 per Unit $5,200 $10,000 $7,429 $1,242 $260 per Unit $500 per Unit $371 per Unit $62 per Unit Management Fees $8, % $440 per Unit Added by Broker $10, % $523 per Unit Total Other Expense 49,021 $2,451 per Unit 34,321 $1,716 per Unit Note: $23, of CapEx have been removed from the Repairs & Maintenance section of Expenses $234,751 PRO-FORMA EXPENSE December YTD Expenses Estimated Expenses Total Fixed Expense 45,692 69,569 Utilities Utilities Estimated Utilities Electricity $3,456 $173 per Unit $3,456 $173 per Unit Total Operating Expense 107,415 $5,371 per Unit 116,592 $5,830 per Unit Reserve for Replacement 4,000 $200 per Unit 4,000 $200 per Unit Total Expense 111,415 $5,571 per Unit 120,592 $6,030 per Unit Net Operating Income (Actual Underwriting) 123, ,092 NOTES: ACTUALS: Actuals are based on owner's 12/13 YTD operating statement. Taxes were estimated by the Broker. PRO FORMA: Insurance is estimated. Taxes are rate and estimated future assessment. All other expenses are estimated. DISCLAIMER: The information contained herein has been obtained from sources that we deem reliable. We have no reason to doubt the accuracy of the information, but we have not verified it and make no guaranty, warranty or representation about it. It is your resonsibility to independently confirm its accuracy and completeness. We have not determined whether the property complies with deed restrictions or any city licensing or ordinances including life safety compliance or if the property lies within a flood plain. THE PROSPECTIVE BUYER SHOULD CAREFULLY VERIFY EACH ITEM OF INCOME OR EXPENSE AND PERFORM OR HAVE PERFORMED ANY INSPECTIONS TO VERIFY POSSIBLE CONTAMINATION BY ASBESTOS, LEAD PAINT, MOLD OR ANY OTHER HAZARDOUS SUBSTANCES. The owner reserves the right to withdraw this listing or change the price at anytime without notice during the marketing period. THIS IS A BROKER PRICE OPINION OR COMPARATIVE MARKET ANALYSIS AND SHOULD NOT BE CONSIDERED AN APPRAISAL. In making any decision that relies upon my work, you should know that I have not followed the guidelines for development or an appraisal or analysis contained in the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation. 2/28/2014 MidtownPortfolio-Summary.xlsx

25 2322 RICHTON HOUSTON, TX Keymap: 492U Construction Quality: B+ PROPERTY INFORMATION AMENITIES EXISTING MORTGAGE TAXING AUTHORITY - HARRIS COUNTY Age: 1962 Access Gates Park & Ride Nearby Mortgage Balance $838,322 ACCT NO: Elec Meter: Indiv Cable Ready Pool Amortization(months) 360 Houston ISD $ A/C Type: HVAC Ceiling Fans School Bus Pick-up P & I $4,628 Harris County $ Water: RUBS Wine Storage Shuttle Route Type Fixed Harris County Flood Control $ Wiring: Copper Mini Blinds Assumable Yes Port of Houston Authority $ Roof: Flat Monthly Escrow $4,433 Harris County Hospital District $ Paving: Concrete Origination Date 9/1/ Harris County Education Dept $ Materials: Brick/Wood Due Date 8/1/2023 Houston Community College $ # of Stories: 2 Interest Rate 5.22% City of Houston $ Parking: Yield Maintenance Yes Buildings: 1 Transfer Fee 1%+app+legal Tax Rate/$100 $ Units/Acre: *In Select Units Tax Assessment $1,097,045 COLLECTIONS Avg Mo $ 19,563 Jan $ 20,185 Feb $ 21,699 Mar $ 17,328 Apr $ 18,293 May $ 20,100 June $ 20,346 July $ 18,503 Aug $ 14,981 Sept $ 21,719 Oct $ 20,755 Nov $ 20,767 Dec $ 20,073 $25,000 $20,000 $15,000 $10,000 $5,000 $- Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec PLEASE DO NOT VISIT THE SITE WITHOUT AN APPOINTMENT MADE THROUGH THE BROKER. PROPERTY HIGHLIGHTS The 2322 Richton Apartments, is a two story, garden-style, apartment community located in the Montrose submarket of Houston,Texas. The asset was originally built in Residents enjoy ample amenities which include: mini-blinds, kitchen pantries, ceiling fans,a full appliance package a beautifully landscaped courtyard and a swimming pool. Currently there are no leasing concessions. The asset is covered under a blanket insurance policy that has better than full replacement coverage and a 2% deductible for wind, named storms and full liability. The property is in excellent condition.. Disclaimer: The information contained in this Memorandum reflects material from sources deemed to be reliable, including data such as operating statements, rent roll, etc. provided by the Owner. Notwithstanding, KET Enterprises Incorporated does not make any warranties about the information contained in this marketing package. Every prospective purchaser should verify the information and rely on his accountants or attorneys for legal and tax advice. This offer is As-Is, Where-Is. Answers to specific inquiries will have to be supplied by the Owner and are available upon request. Rates of return vary daily. No representations are made concerning environmental issues, if any. THIS IS A BROKER PRICE OPINION OR COMPARATIVE MARKET ANALYSIS AND SHOULD NOT BE CONSIDERED AN APPRAISAL. In making any decision that relies upon my work, you should know that I have not followed the guidelines for development or an appraisal or analysis contained in the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation.

26 2322 RICHTON HOUSTON, TX Unit Mix Unit # Type No. Units Sq Ft Total SqFt Market Rent Total Rent Rent/SF 1 2 Bed/1 Bath $1,495 $1,495 $ Bed/1 Bath $975 $975 $ Bed/1 Bath $1,125 $1,125 $ Bed/1 Bath $1,150 $1,150 $ Bed/1 Bath $1,195 $1,195 $ Bed/1 Bath $1,195 $1,195 $ Bed/1 Bath $975 $975 $ Bed/1 Bath $1,150 $1,150 $ Bed/1 Bath $1,175 $1,175 $ Bed/1 Bath $1,050 $1,050 $ Bed/1 Bath $1,550 $1,550 $ Bed/1 Bath $1,095 $1,095 $ Bed/1 Bath $1,150 $1,150 $ Bed/1 Bath $1,150 $1,150 $ Bed/1 Bath $1,050 $1,050 $ Bed/1 Bath $925 $925 $ Bed/1 Bath $1,195 $1,195 $ Bed/1 Bath $1,095 $1,095 $ Bed/2.5 Bath $1,095 $1,095 $ Bed/1 Bath $1,595 $1,595 $ ,528 $1,169 $23,385 $1.87 TOTALS AND AVERAGES Total Units UNIT MIX JAN 2014 Sq. Ft. Total Sq. Feet Rent/Unit Total Rent Rent/ SF 5% % of Units by Type 20% 75% 1 Bed/1 Bath 2 Bed/1 Bath 2 Bed/2.5 Bath Apartment Features Full Appliance Package Renovated Interiors Community Features Great Inner Loop Location Gated Community w/off Street Parking Onsite Laundry Facility Swimming Pool

27 4115 DRAKE HOUSTON, TX Physical Information Financial Information Existing Loan Parameters Operating Information Number of Units 16 Asking Market Mortgage Balance $892,263 Est Mkt Rent (Dec-13) $16,630 Avg Unit Size 638 Price Per Unit N/A Amortization (months) 360 Estimated Collections $16,962 Net Rentable Area 10,201 Price Per Sq. Ft. N/A Debt Service $60,510 Physical Occ (Dec-13) 100% Land Area (Acres) 0.34 Monthly P & I $5,043 Est Ins per Unit per Yr $566 Units per Acre Interest Rate 5.42% Property Tax Information Date Built 1962 Date Due 8/1/2023 Tax Rate () Water Meter / Master Elec Meter RUBS Indiv Est Res for Repl/Unit/Yr Yield Maintenance Yes Tax Assessment Taxes $1,143,765 $32,179 Roof Style Flat Est Future Tax Assessment $1,395,536 HVAC System Indiv Est Future Taxes $39,262 INCOME PRO-FORMA INCOME Current Street Rent with a 5% Increase 209,538 Estimated Gross Scheduled Income 209,538 Estimated Loss to Lease (2% of Total Street Rent) (4,191) 2% Estimated Vacancy (1% of Total Street Rent) (2,095) 1% Estimated Concessions and Other Rental Losses (2% of Total Street Rent) (4,191) 2% Estimated Utilities Income Estimated Other Income 2,392 Estimated Total Rental Income 207,019 ESTIMATED TOTAL PRO-FORMA INCOME 207,019 Oct '13 thru Dec '13 Income MODIFIED ACTUALS Fixed Expenses Fixed Expenses Estimated Fixed Expenses Taxes $32,179 $2,011 per Unit Tax Rate & Future Assessment $39,262 $2,454 per Unit Insurance $9,057 $566 per Unit 2014 Insurance Quote $9,057 $566 per Unit 2014 Insurance Quote Total Fixed Expense 41,236 48,319 Water & Sewer $7,374 $461 per Unit $7,374 $461 per Unit Gas $1,908 $119 per Unit $1,908 $119 per Unit $17,462 / Mo $17,462 / Mo 5,566 $348 / Unit / Yr $150 / Unit / Yr $17,252 / Mo Tax Rate & Future Assessment $2,577 per Unit $3,020 per Unit Total Utilities 11,091 $693 per Unit 11,091 $693 per Unit Other Expenses Other Expenses Estimated Other Expenses General & Admin & Marketing R&M (including maint salaries) Labor Costs Contract Services $3,738 $28,060 $5,943 $5,156 $234 per Unit $1,754 per Unit $371 per Unit $322 per Unit Added by Broker $4,160 $8,000 $5,943 $5,156 $260 per Unit $500 per Unit $371 per Unit $322 per Unit Management Fees $7, % $477 per Unit Added by Broker $7, % $485 per Unit Total Other Expense 50,530 $3,158 per Unit 31,022 $1,939 per Unit Note: $72, of CapEx have been removed from the Repairs & Maintenance section of Expenses $203,541 PRO-FORMA EXPENSE December YTD Expenses Estimated Expenses Utilities Utilities Estimated Utilities Electricity $1,810 $113 per Unit $1,810 $113 per Unit Total Operating Expense 102,857 $6,429 per Unit 90,432 $5,652 per Unit Reserve for Replacement 3,200 $200 per Unit 3,200 $200 per Unit Total Expense 106,057 $6,629 per Unit 93,632 $5,852 per Unit Net Operating Income (Actual Underwriting) 97, ,387 NOTES: ACTUALS: Actuals are based on owner's 12/13 YTD operating statement. Taxes were estimated by the Broker. PRO FORMA: Insurance is estimated. Taxes are rate and estimated future assessment. All other expenses are estimated. DISCLAIMER: The information contained herein has been obtained from sources that we deem reliable. We have no reason to doubt the accuracy of the information, but we have not verified it and make no guaranty, warranty or representation about it. It is your resonsibility to independently confirm its accuracy and completeness. We have not determined whether the property complies with deed restrictions or any city licensing or ordinances including life safety compliance or if the property lies within a flood plain. THE PROSPECTIVE BUYER SHOULD CAREFULLY VERIFY EACH ITEM OF INCOME OR EXPENSE AND PERFORM OR HAVE PERFORMED ANY INSPECTIONS TO VERIFY POSSIBLE CONTAMINATION BY ASBESTOS, LEAD PAINT, MOLD OR ANY OTHER HAZARDOUS SUBSTANCES. The owner reserves the right to withdraw this listing or change the price at anytime without notice during the marketing period. THIS IS A BROKER PRICE OPINION OR COMPARATIVE MARKET ANALYSIS AND SHOULD NOT BE CONSIDERED AN APPRAISAL. In making any decision that relies upon my work, you should know that I have not followed the guidelines for development or an appraisal or analysis contained in the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation. 2/28/2014 MidtownPortfolio-Summary.xlsx

28 4115 DRAKE HOUSTON, TX Keymap: 492W Construction Quality: B+ PROPERTY INFORMATION AMENITIES EXISTING MORTGAGE TAXING AUTHORITY - HARRIS COUNTY Age: 1962 Access Gates Park & Ride Nearby Mortgage Balance $892,263 ACCT NO: Elec Meter: Indiv Cable Ready Wine Storage Amortization 360 Houston ISD $ A/C Type: HVAC Ceiling Fans School Bus Pick-up P & I $5,043 Harris County $ Water: RUBS Pool Shuttle Route Type Fixed Harris County Flood Control $ Wiring: Copper Mini Blinds Covered Parking Assumable Yes Port of Houston Authority $ Roof: Flat Monthly Escrow $4,007 Harris County Hospital District $ Paving: Asphalt Origination Date 9/1/ Harris County Education Dept $ Materials: Brick/Wood Due Date 8/1/2023 Houston Community College $ # of Stories: 2 Interest Rate 5.42% City of Houston $ Parking: Yield Maintenance Yes HC ID 11 $ Buildings: 1 Transfer Fee 1%+app+legal Tax Rate/$100 $ Units/Acre: *In Select Units Tax Assessment $1,143,765 COLLECTIONS 3 Mo Avg $ 16,962 Jan $ 17,151 Feb $ 17,183 Mar $ 13,138 Apr $ 17,385 May $ 19,222 June $ 16,324 July $ 15,919 Aug $ 11,179 Sept $ 16,965 Oct $ 17,012 Nov $ 16,918 Dec $ 16,956 $25,000 $20,000 $15,000 $10,000 $5,000 $- Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec PLEASE DO NOT VISIT THE SITE WITHOUT AN APPOINTMENT MADE THROUGH THE BROKER. PROPERTY HIGHLIGHTS The 4115 Drake Apartments, is a two story, garden-style, apartment community located in the West University submarket in Houston,Texas. The asset was originally built in 1962 and remodeled in Residents enjoy ample amenities which include: mini-blinds, kitchen pantries, ceiling fans, a full appliance package and a beautifully landscaped courtyard. Currently there are no leasing concessions. Per owner's operating statement, expenses are higher than normal due to the roof maintenance and exterior painting. The asset is covered under a blanket insurance policy that has better than full replacement coverage and a 2% deductible for wind, named storms and full liability. The property is in excellent condition. Disclaimer: The information contained in this Memorandum reflects material from sources deemed to be reliable, including data such as operating statements, rent roll, etc. provided by the Owner. Notwithstanding, KET Enterprises Incorporated does not make any warranties about the information contained in this marketing package. Every prospective purchaser should verify the information and rely on his accountants or attorneys for legal and tax advice. This offer is As-Is, Where-Is. Answers to specific inquiries will have to be supplied by the Owner and are available upon request. Rates of return vary daily. No representations are made concerning environmental issues, if any. THIS IS A BROKER PRICE OPINION OR COMPARATIVE MARKET ANALYSIS AND SHOULD NOT BE CONSIDERED AN APPRAISAL. In making any decision that relies upon my work, you should know that I have not followed the guidelines for development or an appraisal or analysis contained in the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation.

29 4115 DRAKE HOUSTON, TX Unit Mix UNIT MIX JAN 2014 Unit # Type No. Units Sq Ft Total SqFt Market Rent Total Rent Rent/SF 1 1 Bed/1 Bath $1,025 $1,025 $ Bed/1 Bath $975 $975 $ Bed/1 Bath $825 $825 $ Bed/1 Bath $1,395 $1,395 $ Bed/1 Bath $1,050 $1,050 $ Bed/1 Bath $875 $875 $ Bed/1 Bath $895 $895 $ Bed/1 Bath $1,200 $1,200 $ Bed/1 Bath $875 $875 $ Bed/1 Bath $1,050 $1,050 $ Bed/1 Bath $1,195 $1,195 $ Bed/1 Bath $1,350 $1,350 $ Bed/1 Bath $1,195 $1,195 $ Bed/1 Bath $925 $925 $ Bed/1 Bath $1,195 $1,195 $ Bed/1 Bath $1,125 $1,125 $1.42 TOTALS AND AVERAGES Total Units ,201 $1,072 $17,150 $1.68 Sq. Ft. Total Sq. Feet Rent/Unit Total Rent Rent/ SF % Units by Type 31% 1 Bed/1 Bath 2 Bed/1 Bath 69% Apartment Features Full Appliance Package Renovated Interiors Community Features Great Inner Loop Location Gated Community w/covered Parking Onsite Laundry Facility Sprinkler System Swimming Pool

30 2300 PARK ST., HOUSTON, TX Physical Information Financial Information Existing Loan Parameters Operating Information Number of Units 20 Asking Market Mortgage Balance $1,134,376 Est Mkt Rent (Dec-13) $24,760 Avg Unit Size 627 Price Per Unit N/A Amortization (months) 360 Estimated Collections $24,694 Net Rentable Area 12,533 Price Per Sq. Ft. N/A Debt Service $75,155 Physical Occ (Dec-13) 97% Land Area (Acres) 0.37 Monthly P & I $6,263 Est Ins per Unit per Yr $547 Units per Acre Interest Rate 5.22% Property Tax Information Date Built 1966 Date Due 8/1/2023 Tax Rate () Water Meter / Master Elec Meter RUBS Indiv Est Res for Repl/Unit/Yr Yield Maintenance Yes Tax Assessment Taxes $1,143,765 $33,608 Roof Style Flat Est Future Tax Assessment $2,175,025 HVAC System Indiv Est Future Taxes $63,911 INCOME PRO-FORMA INCOME Current Street Rent with a 5% Increase 311,976 Estimated Gross Scheduled Income 311,976 Estimated Loss to Lease (2% of Total Street Rent) (6,240) 2% Estimated Vacancy (1% of Total Street Rent) (3,120) 1% Estimated Concessions and Other Rental Losses (2% of Total Street Rent) (6,240) 2% Estimated Utilities Income Estimated Other Income 5,482 Estimated Total Rental Income 309,184 ESTIMATED TOTAL PRO-FORMA INCOME 309,184 Oct '13 thru Dec '13 Income Fixed Expenses $25,998 / Mo $25,998 / Mo 7,325 $366 / Unit / Yr $274 / Unit / Yr Fixed Expenses Estimated Fixed Expenses Taxes $33,608 $1,680 per Unit 12/13 OS $63,911 $3,196 per Unit Tax Rate & Future Assessment Insurance $10,933 $547 per Unit 2014 Insurance Quote $10,933 $547 per Unit 2014 Insurance Quote Water & Sewer $7,844 $392 per Unit $7,844 $392 per Unit Gas $2,215 $111 per Unit $2,215 $111 per Unit $25,765 / Mo $2,227 per Unit $3,742 per Unit Total Utilities 12,695 $635 per Unit 12,695 $635 per Unit Other Expenses Other Expenses Estimated Other Expenses General & Admin & Marketing R&M (including maint salaries) Labor Costs Contract Services $9,743 $20,897 $7,429 $5,081 $487 per Unit $1,045 per Unit $371 per Unit $254 per Unit Higher than normal $6,821 $10,000 $7,429 $5,081 $341 per Unit $500 per Unit $371 per Unit $254 per Unit Management Fees $11, % $556 per Unit Added by Broker $11, % $580 per Unit Total Other Expense 54,261 $2,713 per Unit 40,925 $2,046 per Unit Note than $1, has been removed from R&M as capex MODIFIED ACTUALS $296,332 PRO-FORMA EXPENSE December YTD Expenses Estimated Expenses Total Fixed Expense 44,541 74,843 Utilities Utilities Estimated Utilities Electricity $2,637 $132 per Unit $2,637 $132 per Unit Total Operating Expense 111,498 $5,575 per Unit 128,464 $6,423 per Unit Reserve for Replacement 4,000 $200 per Unit 4,000 $200 per Unit Total Expense 115,498 $5,775 per Unit 132,464 $6,623 per Unit Net Operating Income (Actual Underwriting) 180, ,721 NOTES: ACTUALS: Actuals are based on owner's 12/13 YTD operating statement. PRO FORMA: Insurance is estimated. Taxes are rate and estimated future assessment. All other expenses are estimated. DISCLAIMER: The information contained herein has been obtained from sources that we deem reliable. We have no reason to doubt the accuracy of the information, but we have not verified it and make no guaranty, warranty or representation about it. It is your resonsibility to independently confirm its accuracy and completeness. We have not determined whether the property complies with deed restrictions or any city licensing or ordinances including life safety compliance or if the property lies within a flood plain. THE PROSPECTIVE BUYER SHOULD CAREFULLY VERIFY EACH ITEM OF INCOME OR EXPENSE AND PERFORM OR HAVE PERFORMED ANY INSPECTIONS TO VERIFY POSSIBLE CONTAMINATION BY ASBESTOS, LEAD PAINT, MOLD OR ANY OTHER HAZARDOUS SUBSTANCES. The owner reserves the right to withdraw this listing or change the price at anytime without notice during the marketing period. THIS IS A BROKER PRICE OPINION OR COMPARATIVE MARKET ANALYSIS AND SHOULD NOT BE CONSIDERED AN APPRAISAL. In making any decision that relies upon my work, you should know that I have not followed the guidelines for development or an appraisal or analysis contained in the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation. 2/28/2014 MidtownPortfolio-Summary.xlsx

31 2300 PARK ST., HOUSTON, TX Keymap: 492Z Construction Quality: B+ PROPERTY INFORMATION AMENITIES EXISTING MORTGAGE TAXING AUTHORITY - HARRIS COUNTY Age: 1966 Access Gates Park & Ride Nearby Mortgage Balance $1,134,376 ACCT NO: Elec Meter: Indiv Cable Ready Fountain Amortization 360 Houston ISD $ A/C Type: HVAC Ceiling Fans School Bus Pick-up P & I $6,263 Harris County $ Water: RUBS Wine Storage Shuttle Route Type Fixed Harris County Flood Control $ Wiring: Copper Mini Blinds Gazbeo/Courtyard Assumable Yes Port of Houston Authority $ Roof: Flat Monthly Escrow $4,538 Harris County Hospital District $ Paving: Asphalt Origination Date 9/1/ Harris County Education Dept $ Materials: Brick/Wood Due Date 8/1/2023 Houston Community College $ # of Stories: 2 Interest Rate 5.22% City of Houston $ Parking: Yield Maintenance Yes HC ID 6 $ Buildings: 3 Transfer Fee 1%+app+legal 2012 Tax Rate/$100 $ Units/Acre: *In Select Units Tax Assessment $1,268,000 COLLECTIONS 3 Mo Avg $ 24,694 Jan $ 19,226 Feb $ 21,416 Mar $ 20,663 Apr $ 22,833 May $ 24,995 June $ 24,220 July $ 24,309 Aug $ 18,245 Sept $ 23,472 Oct $ 22,920 Nov $ 27,320 Dec $ 23,843 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $- Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec PLEASE DO NOT VISIT THE SITE WITHOUT AN APPOINTMENT MADE THROUGH THE BROKER. PROPERTY HIGHLIGHTS The 2300 Park Apartments, is a two story, garden-style, apartment community located in the Montrose submarket of Houston,Texas. The asset was originally built in Residents enjoy ample amenities which include: mini-blinds, kitchen pantries, ceiling fans, a full appliance package and a beautifully landscaped courtyard. Currently there are no leasing concessions. The asset is covered under a blanket insurance policy that has better than full replacement coverage and a 2% deductible for wind, named storms and full liability. The property is in excellent condition.. Disclaimer: The information contained in this Memorandum reflects material from sources deemed to be reliable, including data such as operating statements, rent roll, etc. provided by the Owner. Notwithstanding, KET Enterprises Incorporated does not make any warranties about the information contained in this marketing package. Every prospective purchaser should verify the information and rely on his accountants or attorneys for legal and tax advice. This offer is As-Is, Where-Is. Answers to specific inquiries will have to be supplied by the Owner and are available upon request. Rates of return vary daily. No representations are made concerning environmental issues, if any. THIS IS A BROKER PRICE OPINION OR COMPARATIVE MARKET ANALYSIS AND SHOULD NOT BE CONSIDERED AN APPRAISAL. In making any decision that relies upon my work, you should know that I have not followed the guidelines for development or an appraisal or analysis contained in the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation.

32 2300 PARK ST., HOUSTON, TX Unit Mix UNIT MIX JAN 2014 Unit # Type No. Units Sq Ft Total SqFt Market Rent Total Rent Rent/SF 1 2 Bed/1 Bath $1,325 $1,325 $ Bed/1 Bath $1,195 $1,195 $ Bed/1 Bath $1,225 $1,225 $ Bed/1 Bath $1,195 $1,195 $ Bed/1 Bath $1,075 $1,075 $ Bed/1 Bath $1,225 $1,225 $ Bed/1 Bath $1,195 $1,195 $ Bed/1 Bath $1,225 $1,225 $ Bed/1 Bath $1,225 $1,225 $ Bed/1 Bath $1,450 $1,450 $ Bed/1 Bath $1,450 $1,450 $ Bed/1 Bath $1,175 $1,175 $ Bed/1 Bath $1,195 $1,195 $ Bed/1 Bath $1,195 $1,195 $ Bed/1 Bath $1,195 $1,195 $ Bed/1 Bath $1,195 $1,195 $ Bed/1 Bath $925 $925 $ Bed/1 Bath $1,495 $1,495 $ Bed/1 Bath $1,150 $1,150 $ Bed/1 Bath $1,450 $1,450 $1.94 TOTALS AND AVERAGES Total Units ,533 $1,238 $24,760 $1.98 Sq. Ft. Total Sq. Feet Rent/Unit Total Rent Rent/ SF 65% 35% % of Units by Type 1 Bed/1 Bath 2 Bed/1 Bath Apartment/Community Features Full Appliance Package Renovated Interiors Great Inner Loop Location Gated Community w/off Street Parking Onsite Laundry Facility

33 3602 GARROTT HOUSTON, TX Physical Information Financial Information Existing Loan Parameters Operating Information Number of Units 20 Asking Market Mortgage Balance $1,156,306 Est Mkt Rent (Dec-13) $22,735 Avg Unit Size 574 Price Per Unit N/A Amortization (months) 360 Estimated Collections $20,478 Net Rentable Area 11,487 Price Per Sq. Ft. N/A Debt Service Physical Occ (Dec-13) 100% Land Area (Acres) 0.29 Stabilized NOI $164,750 Monthly P & I $6,384 Est Ins per Unit per Yr $466 Units per Acre Interest Rate 5.22% Property Tax Information Date Built 1963 Date Due 8/1/2023 Tax Rate () Water Meter / Master Elec Meter RUBS Indiv Est Res for Repl/Unit/Yr Yield Maintenance Yes Tax Assessment Taxes $1,031,670 $29,995 Roof Style Pitched Est Future Tax Assessment $2,027,691 HVAC System Indiv Est Future Taxes $58,953 INCOME PRO-FORMA INCOME Current Street Rent with a 5% Increase 286,461 Estimated Gross Scheduled Income 286,461 Estimated Loss to Lease (2% of Total Street Rent) (5,729) 2% Estimated Vacancy (1% of Total Street Rent) (2,865) 1% Estimated Concessions and Other Rental Losses (2% of Total Street Rent) (5,729) 2% Estimated Utilities Income Estimated Other Income 8,412 Estimated Total Rental Income 287,039 ESTIMATED TOTAL PRO-FORMA INCOME 287,039 Jan '13 thru Dec '13 Income Fixed Expenses MODIFIED ACTUALS $23,872 / Mo $23,872 / Mo 6,490 $324 / Unit / Yr $421 / Unit / Yr Fixed Expenses Estimated Fixed Expenses Taxes $1,209 $60 per Unit 12/13 OS $58,953 $2,948 per Unit Tax Rate & Future Assessment Insurance $9,324 $466 per Unit 2014 Insurance Quote $9,324 $466 per Unit 2014 Insurance Quote Water & Sewer $6,693 $335 per Unit $6,693 $335 per Unit Gas $2,247 $112 per Unit $2,247 $112 per Unit $23,920 / Mo $527 per Unit $3,414 per Unit Total Utilities 11,389 $569 per Unit 11,389 $569 per Unit Other Expenses Other Expenses Estimated Other Expenses General & Admin & Marketing Repairs & Maintenance Labor Costs Contract Services $2,798 $24,493 $7,429 $3,231 $140 per Unit $1,225 per Unit $371 per Unit $162 per Unit $5,200 $10,000 $7,429 $3,231 $260 per Unit $500 per Unit $371 per Unit $162 per Unit Management Fees $9, % $461 per Unit Added by Broker $10, % $538 per Unit Total Other Expense 47,165 $2,358 per Unit 36,624 $1,831 per Unit Note: $16, of CapEx have been removed from the Repairs & Maintenance section of Expenses $245,738 PRO-FORMA EXPENSE December YTD Expenses Estimated Expenses Total Fixed Expense 10,533 68,277 Utilities Utilities Estimated Utilities Electricity $2,449 $122 per Unit $2,449 $122 per Unit Total Operating Expense 69,088 $3,454 per Unit 116,290 $5,814 per Unit Reserve for Replacement 4,000 $200 per Unit 6,000 $300 per Unit Total Expense 73,088 $3,654 per Unit 122,290 $6,114 per Unit Net Operating Income (Actual Underwriting) 172, ,750 NOTES: ACTUALS: Actuals are based on owner's 12/13 YTD operating statement. Taxes were estimated by the Broker. PRO FORMA: Insurance is estimated. Taxes are rate and estimated future assessment. All other expenses are estimated. DISCLAIMER: The information contained herein has been obtained from sources that we deem reliable. We have no reason to doubt the accuracy of the information, but we have not verified it and make no guaranty, warranty or representation about it. It is your resonsibility to independently confirm its accuracy and completeness. We have not determined whether the property complies with deed restrictions or any city licensing or ordinances including life safety compliance or if the property lies within a flood plain. THE PROSPECTIVE BUYER SHOULD CAREFULLY VERIFY EACH ITEM OF INCOME OR EXPENSE AND PERFORM OR HAVE PERFORMED ANY INSPECTIONS TO VERIFY POSSIBLE CONTAMINATION BY ASBESTOS, LEAD PAINT, MOLD OR ANY OTHER HAZARDOUS SUBSTANCES. The owner reserves the right to withdraw this listing or change the price at anytime without notice during the marketing period. THIS IS A BROKER PRICE OPINION OR COMPARATIVE MARKET ANALYSIS AND SHOULD NOT BE CONSIDERED AN APPRAISAL. In making any decision that relies upon my work, you should know that I have not followed the guidelines for development or an appraisal or analysis contained in the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation. 2/28/2014 MidtownPortfolio-Summary.xlsx

34 3602 GARROTT HOUSTON, TX Keymap: 492W Construction Quality: B+ PROPERTY INFORMATION AMENITIES EXISTING MORTGAGE TAXING AUTHORITY - HARRIS COUNTY Age: 1963 Access Gates Park & Ride Nearby Mortgage Balance $1,156,306 ACCT NO: Elec Meter: Indiv Cable Ready Shuttle Route Amortization 360 Houston ISD $ A/C Type: HVAC Ceiling Fans School Bus Pick-up P & I $6,384 Harris County $ Water: RUBS Pool Type Fixed Harris County Flood Control $ Wiring: Copper Mini Blinds Assumable Yes Port of Houston Authority $ Roof: Pitched Monthly Escrow $3,925 Harris County Hospital District $ Paving: Concrete Origination Date 9/1/ Harris County Education Dept $ Materials: Brick/Wood Due Date 8/1/2023 Houston Community College $ # of Stories: 2 Interest Rate 5.22% City of Houston $ Parking: Yield Maintenance Yes HC ID 6 $ Buildings: 1 Transfer Fee 1%+app+legal Tax Rate/$100 $ Units/Acre: *In Select Units Tax Assessment $1,031,670 COLLECTIONS Avg Mo $ 20,478 Jan $ 20,656 Feb $ 18,731 Mar $ 21,515 Apr $ 15,639 May $ 28,824 June $ 15,161 July $ 21,502 Aug $ 17,496 Sept $ 21,647 Oct $ 21,350 Nov $ 21,351 Dec $ 21,866 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $- Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec PLEASE DO NOT VISIT THE SITE WITHOUT AN APPOINTMENT MADE THROUGH THE BROKER. PROPERTY HIGHLIGHTS The 3602 Garrott Apartments, is a two story, garden-style, apartment community located in the Montrose submarket of Houston,Texas. The asset was originally built in Residents enjoy ample amenities which include: mini-blinds, kitchen pantries, ceiling fans, a full appliance package, swimming pool and a beautifully landscaped courtyard. Currently there are no leasing concessions. Per owner's operating statement, expenses are higher than normal due to the roof maintenance and exterior painting. The asset is covered under a blanket insurance policy that has better than full replacement coverage and a 2% deductible for wind, named storms and full liability. The property is in excellent condition. Disclaimer: The information contained in this Memorandum reflects material from sources deemed to be reliable, including data such as operating statements, rent roll, etc. provided by the Owner. Notwithstanding, KET Enterprises Incorporated does not make any warranties about the information contained in this marketing package. Every prospective purchaser should verify the information and rely on his accountants or attorneys for legal and tax advice. This offer is As-Is, Where-Is. Answers to specific inquiries will have to be supplied by the Owner and are available upon request. Rates of return vary daily. No representations are made concerning environmental issues, if any. THIS IS A BROKER PRICE OPINION OR COMPARATIVE MARKET ANALYSIS AND SHOULD NOT BE CONSIDERED AN APPRAISAL. In making any decision that relies upon my work, you should know that I have not followed the guidelines for development or an appraisal or analysis contained in the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation.

35 3602 GARROTT HOUSTON, TX Unit Mix Unit # Type No. Units Sq Ft Total SqFt Market Rent Total Rent Rent/SF 1 Bed/1 Bath $1,195 $1,195 $ Bed/1 Bath $1,125 $1,125 $ Bed/1 Bath $995 $995 $ Bed/1 Bath $1,095 $1,095 $ Bed/1 Bath $1,250 $1,250 $ Bed/1 Bath $1,195 $1,195 $ Bed/1 Bath $995 $995 $ Bed/1 Bath $1,100 $1,100 $ Bed/1 Bath $1,095 $1,095 $ Bed/1 Bath $1,195 $1,195 $ Bed/1 Bath $1,275 $1,275 $ Bed/1 Bath $1,050 $1,050 $ Bed/1 Bath $1,125 $1,125 $ Bed/1 Bath $1,095 $1,095 $ Bed/1 Bath $1,250 $1,250 $ Bed/1 Bath $1,225 $1,225 $ Bed/1 Bath $1,100 $1,100 $ Bed/1 Bath $1,100 $1,100 $ Bed/1 Bath $1,250 $1,250 $ Bed/1 Bath $1,025 $1,025 $ ,487 $1,137 $22,735 $1.98 TOTALS AND AVERAGES Total Units UNIT MIX JAN 2014 Sq. Ft. Total Sq. Feet Rent/Unit Total Rent Rent/ SF 1 1 # Units by Size 1 Bed/1 Bath Bed/1 Bath Bed/1 Bath-723 Apartment Features Full Appliance Package Renovated Interiors Community Features Great Inner Loop Location Gated Community w/off Street Parking Onsite Laundry Facility Sprinkler System Swimming Pool

36 GARROTT ST., HOUSTON, TX Physical Information Financial Information Existing Loan Parameters Operating Information Number of Units 16 Asking Market Mortgage Balance $809,526 Est Mkt Rent (Dec-13) $15,275 Avg Unit Size 482 Price Per Unit N/A Amortization (months) 360 Estimated Collections $13,429 Net Rentable Area 7,711 Price Per Sq. Ft. N/A Debt Service $54,837 Physical Occ (Dec-13) 88% Land Area (Acres) 0.22 Monthly P & I $4,570 Est Ins per Unit per Yr $423 Units per Acre Interest Rate 5.42% Property Tax Information Date Built 1960 Date Due 8/1/2023 Tax Rate () Water Meter / Master Elec Meter RUBS Indiv Est Res for Repl/Unit/Yr Yield Maintenance Yes Tax Assessment Taxes $591,311 $17,375 Roof Style Pitched Est Future Tax Assessment $1,304,020 HVAC System Indiv Est Future Taxes $38,317 INCOME PRO-FORMA INCOME Current Street Rent with a 5% Increase 192,465 Estimated Gross Scheduled Income 192,465 Estimated Loss to Lease (2% of Total Street Rent) (3,849) 2% Estimated Vacancy (1% of Total Street Rent) (1,925) 1% Estimated Concessions and Other Rental Losses (2% of Total Street Rent) (3,849) 2% Estimated Utilities Income Estimated Other Income 3,113 Estimated Total Rental Income 190,973 ESTIMATED TOTAL PRO-FORMA INCOME 190,973 Jan '13 thru Dec '13 Income Fixed Expenses MODIFIED ACTUALS $16,039 / Mo $16,039 / Mo 5,019 $314 / Unit / Yr $195 / Unit / Yr Fixed Expenses Estimated Fixed Expenses Taxes $15,845 $990 per Unit 12/13 OS $38,317 $2,395 per Unit Tax Rate & Future Assessment Insurance $6,761 $423 per Unit 2014 Insurance Quote $6,761 $423 per Unit 2014 Insurance Quote Water & Sewer $5,458 $341 per Unit $5,458 $341 per Unit Gas $2,087 $130 per Unit $2,087 $130 per Unit $15,914 / Mo $1,413 per Unit $2,817 per Unit Total Utilities 8,562 $535 per Unit 8,562 $535 per Unit Other Expenses Other Expenses Estimated Other Expenses General & Admin & Marketing R&M (including maint salaries) Labor Costs Contract Services Management Fees $2,305 $11,502 $5,943 $1,317 $6,043 $144 per Unit $719 per Unit $371 per Unit $82 per Unit 3.75% $378 per Unit Higher than normal Added by Broker Added by Broker $4,160 $8,000 $5,943 $1,317 $7,161 $260 per Unit $500 per Unit $371 per Unit $82 per Unit 3.75% $448 per Unit Total Other Expense 27,110 $1,694 per Unit 26,582 $1,661 per Unit Note: $9, of CapEx have been removed from the Repairs & Maintenance section of Expenses $161,148 PRO-FORMA EXPENSE December YTD Expenses Estimated Expenses Total Fixed Expense 22,606 45,078 Utilities Utilities Estimated Utilities Electricity $1,016 $64 per Unit $1,016 $64 per Unit Total Operating Expense 58,278 $3,642 per Unit 80,222 $5,014 per Unit Reserve for Replacement 3,200 $200 per Unit 4,800 $300 per Unit Total Expense 61,478 $3,842 per Unit 85,022 $5,314 per Unit Net Operating Income (Actual Underwriting) 99, ,952 NOTES: ACTUALS: Actuals are based on owner's 12/13 YTD operating statement. PRO FORMA: Insurance is estimated. Taxes are rate and estimated future assessment. All other expenses are estimated. DISCLAIMER: The information contained herein has been obtained from sources that we deem reliable. We have no reason to doubt the accuracy of the information, but we have not verified it and make no guaranty, warranty or representation about it. It is your resonsibility to independently confirm its accuracy and completeness. We have not determined whether the property complies with deed restrictions or any city licensing or ordinances including life safety compliance or if the property lies within a flood plain. THE PROSPECTIVE BUYER SHOULD CAREFULLY VERIFY EACH ITEM OF INCOME OR EXPENSE AND PERFORM OR HAVE PERFORMED ANY INSPECTIONS TO VERIFY POSSIBLE CONTAMINATION BY ASBESTOS, LEAD PAINT, MOLD OR ANY OTHER HAZARDOUS SUBSTANCES. The owner reserves the right to withdraw this listing or change the price at anytime without notice during the marketing period. THIS IS A BROKER PRICE OPINION OR COMPARATIVE MARKET ANALYSIS AND SHOULD NOT BE CONSIDERED AN APPRAISAL. In making any decision that relies upon my work, you should know that I have not followed the guidelines for development or an appraisal or analysis contained in the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation. 2/28/2014 MidtownPortfolio-Summary.xlsx

37 GARROTT ST., HOUSTON, TX Keymap: 493S Construction Quality: B+ PROPERTY INFORMATION AMENITIES EXISTING MORTGAGE TAXING AUTHORITY - HARRIS COUNTY Age: 1960 Access Gates Park & Ride Nearby Mortgage Balance $809,526 ACCT NO: Elec Meter: Indiv Cable Ready Shuttle Route Amortization(months) 360 Houston ISD $ A/C Type: Wall Unit Ceiling Fans School Bus Pick-up P & I $4,570 Harris County $ Water: RUBS Mini Blinds Type Fixed Harris County Flood Control $ Wiring: Copper Assumable Yes Port of Houston Authority $ Roof: Pitched Monthly Escrow $2,778 Harris County Hospital District $ Paving: Concrete Origination Date 9/1/ Harris County Education Dept $ Materials: Brick/Wood Due Date 8/1/2023 Houston Community College $ # of Stories: 2 Interest Rate 5.42% City of Houston $ Parking: Yield Maintenance Yes HC ID 6 $ Buildings: 1 Transfer Fee 1%+app+legal Tax Rate/$100 $ Units/Acre: *In Select Units Tax Assessment $591,311 COLLECTIONS Avg Mo $ 13,429 Jan $ 14,028 Feb $ 15,347 Mar $ 9,839 Apr $ 16,236 May $ 15,023 June $ 9,831 July $ 14,802 Aug $ 12,078 Sept $ 14,585 Oct $ 12,468 Nov $ 14,032 Dec $ 12,935 $18,000 $16,000 $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $- Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec PLEASE DO NOT VISIT THE SITE WITHOUT AN APPOINTMENT MADE THROUGH THE BROKER. PROPERTY HIGHLIGHTS The 3402 Garrott Apartments, is a two story, garden-style, apartment community located in the Montrose submarket of Houston,Texas. The asset was originally built in Residents enjoy ample amenities which include: mini-blinds, ceiling fans and a beautifully landscaped courtyard with a water feature. Currently there are no leasing concessions. The asset is covered under a blanket insurance policy that has better than full replacement coverage and a 2% deductible for wind, named storms and full liability. The property is in excellent condition.. Disclaimer: The information contained in this Memorandum reflects material from sources deemed to be reliable, including data such as operating statements, rent roll, etc. provided by the Owner. Notwithstanding, KET Enterprises Incorporated does not make any warranties about the information contained in this marketing package. Every prospective purchaser should verify the information and rely on his accountants or attorneys for legal and tax advice. This offer is As-Is, Where-Is. Answers to specific inquiries will have to be supplied by the Owner and are available upon request. Rates of return vary daily. No representations are made concerning environmental issues, if any. THIS IS A BROKER PRICE OPINION OR COMPARATIVE MARKET ANALYSIS AND SHOULD NOT BE CONSIDERED AN APPRAISAL. In making any decision that relies upon my work, you should know that I have not followed the guidelines for development or an appraisal or analysis contained in the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation.

38 GARROTT ST., HOUSTON, TX Unit Mix UNIT MIX JAN 2014 Unit # Type No. Units Sq Ft Total SqFt Market Rent Total Rent Rent/SF 1 1 Bed/1 Bath $995 $995 $ Bed/1 Bath $975 $975 $ Bed/1 Bath $785 $785 $ Bed/1 Bath $875 $875 $ Bed/1 Bath $1,025 $1,025 $ Bed/1 Bath $785 $785 $ Bed/1 Bath $950 $950 $ Bed/1 Bath $1,025 $1,025 $ Bed/1 Bath $1,000 $1,000 $ Bed/1 Bath $995 $995 $ Bed/1 Bath $895 $895 $ Bed/1 Bath $1,075 $1,075 $ Bed/1 Bath $1,050 $1,050 $ Bed/1 Bath $1,050 $1,050 $ Bed/1 Bath $975 $975 $ Bed/1 Bath $1,025 $1,025 $2.13 TOTALS AND AVERAGES Total Units ,711 $968 $15,480 $2.01 Sq. Ft. Total Sq. Feet Rent/Unit Total Rent Rent/ SF # Units by Size Bed/1 Bath Bed/1 Bath Bed/1 Bath Apartment Features Renovated Interiors Community Features Great Inner Loop Location Gated Community w/off Street Parking Onsite Laundry Facility Sprinkler System Water Feature

39 420 WEST ALABAMA., HOUSTON, TX Physical Information Financial Information Existing Loan Parameters Operating Information Number of Units 16 Asking Market Mortgage Balance $914,005 Est Mkt Rent (Dec-13) $16,755 Avg Unit Size 591 Price Per Unit N/A Amortization (months) 360 Estimated Collections $16,550 Net Rentable Area 9,457 Price Per Sq. Ft. N/A Debt Service $60,626 Physical Occ (Dec-13) 100% Land Area (Acres) 0.21 Stabilized NOI $117,831 Monthly P & I $5,052 Est Ins per Unit per Yr $435 Units per Acre Interest Rate 5.22% Property Tax Information Date Built 1968 Date Due 8/1/2023 Tax Rate () Water Meter / Master Elec Meter RUBS Indiv Est Res for Repl/Unit/Yr Yield Maintenance Yes Tax Assessment Taxes $804,191 $23,630 Roof Style Flat Est Future Tax Assessment $1,450,233 HVAC System Indiv Est Future Taxes $42,614 INCOME PRO-FORMA INCOME Current Street Rent with a 5% Increase 211,113 Estimated Gross Scheduled Income 211,113 Estimated Loss to Lease (2% of Total Street Rent) (4,222) 2% Estimated Vacancy (1% of Total Street Rent) (2,111) 1% Estimated Concessions and Other Rental Losses (2% of Total Street Rent) (4,222) 2% Estimated Utilities Income Estimated Other Income 3,689 Estimated Total Rental Income 209,280 ESTIMATED TOTAL PRO-FORMA INCOME 209,280 Oct '13 thru Dec '13 Income Fixed Expenses MODIFIED ACTUALS $17,593 / Mo $17,593 / Mo 5,034 $315 / Unit / Yr $231 / Unit / Yr Fixed Expenses Estimated Fixed Expenses Taxes $23,630 $1,477 per Unit Tax Rate & Future Assessment $42,614 $2,663 per Unit Tax Rate & Future Assessment Insurance $6,958 $435 per Unit 2014 Insurance Quote $6,958 $435 per Unit 2014 Insurance Quote Water & Sewer $6,201 $388 per Unit $6,201 $388 per Unit Gas $2,112 $132 per Unit $2,112 $132 per Unit $17,440 / Mo $1,912 per Unit $3,098 per Unit Total Utilities 9,567 $598 per Unit 9,567 $598 per Unit Other Expenses Other Expenses Estimated Other Expenses General & Admin & Marketing R&M (including maint salaries) Labor Costs Contract Services Management Fees $1,710 $9,237 $5,943 $3,159 $7,448 $107 per Unit $577 per Unit $371 per Unit $197 per Unit 3.75% $465 per Unit Added by Broker $4,160 $8,000 $5,943 $3,159 $7,848 $260 per Unit $500 per Unit $371 per Unit $197 per Unit 3.75% $491 per Unit Total Other Expense 27,496 $1,719 per Unit 29,110 $1,819 per Unit Note: $ of CapEx have been removed from the Repairs & Maintenance section of Expenses $198,605 PRO-FORMA EXPENSE December YTD Expenses Estimated Expenses Total Fixed Expense 30,588 49,572 Utilities Utilities Estimated Utilities Electricity $1,255 $78 per Unit $1,255 $78 per Unit Total Operating Expense 67,652 $4,228 per Unit 88,249 $5,516 per Unit Reserve for Replacement 3,200 $200 per Unit 3,200 $200 per Unit Total Expense 70,852 $4,428 per Unit 91,449 $5,716 per Unit Net Operating Income (Actual Underwriting) 127, ,831 NOTES: ACTUALS: Actuals are based on owner's 12/13 YTD operating statement. Taxes were estimated by the Broker. PRO FORMA: Insurance is estimated. Taxes are rate and estimated future assessment. All other expenses are estimated. DISCLAIMER: The information contained herein has been obtained from sources that we deem reliable. We have no reason to doubt the accuracy of the information, but we have not verified it and make no guaranty, warranty or representation about it. It is your resonsibility to independently confirm its accuracy and completeness. We have not determined whether the property complies with deed restrictions or any city licensing or ordinances including life safety compliance or if the property lies within a flood plain. THE PROSPECTIVE BUYER SHOULD CAREFULLY VERIFY EACH ITEM OF INCOME OR EXPENSE AND PERFORM OR HAVE PERFORMED ANY INSPECTIONS TO VERIFY POSSIBLE CONTAMINATION BY ASBESTOS, LEAD PAINT, MOLD OR ANY OTHER HAZARDOUS SUBSTANCES. The owner reserves the right to withdraw this listing or change the price at anytime without notice during the marketing period. THIS IS A BROKER PRICE OPINION OR COMPARATIVE MARKET ANALYSIS AND SHOULD NOT BE CONSIDERED AN APPRAISAL. In making any decision that relies upon my work, you should know that I have not followed the guidelines for development or an appraisal or analysis contained in the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation. 2/28/2014 MidtownPortfolio-Summary.xlsx

40 420 WEST ALABAMA., HOUSTON, TX Keymap: 493S Construction Quality: B+ PROPERTY INFORMATION AMENITIES EXISTING MORTGAGE TAXING AUTHORITY - HARRIS COUNTY Age: 1968 Access Gates Park & Ride Nearby Mortgage Balance $914,005 ACCT NO: Elec Meter: Indiv Cable Ready Shuttle Route Amortization 360 Houston ISD $ A/C Type: HVAC Ceiling Fans School Bus Pick-up P & I $5,052 Harris County $ Water: RUBS Mini Blinds Covered Parking Type Fixed Harris County Flood Control $ Wiring: Copper Assumable Yes Port of Houston Authority $ Roof: Flat Monthly Escrow $2,833 Harris County Hospital District $ Paving: Concrete Origination Date 9/1/ Harris County Education Dept $ Materials: Brick/Wood Due Date 8/1/2023 Houston Community College $ # of Stories: 2 Interest Rate 5.22% City of Houston $ Parking: Yield Maintenance Yes HC ID 6 $ Buildings: 1 Transfer Fee 1%+app+legal Tax Rate/$100 $ Units/Acre: *In Select Units Tax Assessment $804,191 COLLECTIONS 3 Mo Avg $ 16,550 Jan $ 15,040 Feb $ 16,925 Mar $ 15,085 Apr $ 18,354 May $ 16,443 June $ 12,735 July $ 15,131 Aug $ 16,444 Sept $ 16,297 Oct $ 16,357 Nov $ 17,220 Dec $ 16,074 $20,000 $18,000 $16,000 $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $- Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec PLEASE DO NOT VISIT THE SITE WITHOUT AN APPOINTMENT MADE THROUGH THE BROKER. PROPERTY HIGHLIGHTS The 420 W Alabama Apartments, is a two story, garden-style, apartment community located in the Montrose submarket of Houston,Texas. The asset was originally built in Residents enjoy ample amenities which include: mini-blinds, kitchen pantries, ceiling fans, a full appliance package and a beautifully landscaped courtyard with a water feature. Currently there are no leasing concessions. The asset is covered under a blanket insurance policy that has better than full replacement coverage and a 2% deductible for wind, named storms and full liability. The property is in excellent condition.. Disclaimer: The information contained in this Memorandum reflects material from sources deemed to be reliable, including data such as operating statements, rent roll, etc. provided by the Owner. Notwithstanding, KET Enterprises Incorporated does not make any warranties about the information contained in this marketing package. Every prospective purchaser should verify the information and rely on his accountants or attorneys for legal and tax advice. This offer is As-Is, Where-Is. Answers to specific inquiries will have to be supplied by the Owner and are available upon request. Rates of return vary daily. No representations are made concerning environmental issues, if any. THIS IS A BROKER PRICE OPINION OR COMPARATIVE MARKET ANALYSIS AND SHOULD NOT BE CONSIDERED AN APPRAISAL. In making any decision that relies upon my work, you should know that I have not followed the guidelines for development or an appraisal or analysis contained in the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation.

41 420 WEST ALABAMA., HOUSTON, TX Unit Mix UNIT MIX JAN 2014 Unit # Type No. Units Sq Ft Total SqFt Market Rent Total Rent Rent/SF 1 1 Bed/1 Bath $1,195 $1,195 $ Bed/1 Bath $1,025 $1,025 $ Bed/1 Bath $1,195 $1,195 $ Bed/1 Bath $1,195 $1,195 $ Bed/1 Bath $850 $850 $ Bed/1 Bath $775 $775 $ Bed/1 Bath $1,035 $1,035 $ Bed/1 Bath $1,325 $1,325 $ Bed/1 Bath $1,175 $1,175 $ Bed/1 Bath $1,095 $1,095 $ Bed/1 Bath $800 $800 $ Bed/1 Bath $895 $895 $ Bed/1 Bath $825 $825 $ Bed/1 Bath $995 $995 $ Bed/1 Bath $1,125 $1,125 $ Bed/1 Bath $1,295 $1,295 $1.60 TOTALS AND AVERAGES Total Units ,457 $1,050 $16,800 $1.78 Sq. Ft. Total Sq. Feet Rent/Unit Total Rent Rent/ SF 2 4 # Units by Size 6 1 Bed/1 Bath Bed/1 Bath Bed/1 Bath Bed/1 Bath Apartment Features Full Appliance Package Newly Renovated Interiors Community Features Great Inner Loop Location Gated Community w/covered Parking Onsite Laundry Facility Sprinkler System Water Feature

42 F6/MIDTOWN PORTFOLIO AREA INFORMATION STATE OF TEXAS ECONOMY Job growth, sales tax collections both from business and consumer purchases as well as automobile sales, signal that the Texas economy has emerged from the recent recession. Another indicator that the state s economy has been comparatively healthy was the U.S. Bureau of the Census report that Texas added more people (nearly 4.3 million) than any other state between the census counts of 2000 and Entering 2011, more than half the jobs shed by employers during Texas shorter recession have already been recovered as our economy recovers more quickly than the U.S. as a whole. Nationally, only 13.4 percent of recession-hit jobs had been recovered ending Texas and the nation returned to economic growth in 2010, with the nation increasing its GDP by 2.8 percent and Texas increasing its GSP by 3.4 percent. Jobs Texas December 2010 unemployment rate was 8.3 percent, up from 8.2 percent in November. Texas total nonfarm employment increased by 20,000 jobs from November to December. Between December 2009 and December 2010, Texas gained 230,800 jobs. The U.S. gained 36,000 total nonfarm jobs in January The U.S. unemployment rate was 9.0 percent in January 2011, a 0.4 percent decrease from December. The Texas unemployment rate has been at or below the national rate for 47 consecutive months. Houston Economy Though Houston's energy industry has helped the city stave off the effects of the national recession, the city's economy has been enhanced by diversification resulting in 53% independence from the energy industry, which allows for a more robust economy and supports further commercial development. The economic diversification includes growth in high technology industries (computer and aerospace), medical research, health care, social assistance, and professional services. With its favorable incentives and accommodating infrastructure, Houston has quickly become a preferred international hub. The Port of Houston is the world's sixth largest port and ranks first in the United States in terms of international tonnage and second in total tonnage. Houston's infrastructure is also strengthened by three airports, which form the fourth largest airport system in the national and sixth largest in the world, as well as a massive trucking and rail system. Numerous Fortune 500 companies, multi-nationals, and domestic companies maintain operations here. Ranking third in the nation, there are 21 Fortune 500 companies that are headquartered in Houston, and more than half of the world's largest 100 non-us based corporations have operations in Houston. Houston is a major corporate center and its geographic advantage, incentive, stable economy, and growing workforce continue to attract corporations to relocate and expand here. Houston's economic base continues to diversify and decrease it dependence on energy. In fact, non-energy sectors have accounted for 87% of net job growth since 1987, further reducing Houston's vulnerability to downturns in the energy industry. With is rapidly expanding population and solid economic base, the city is primed to benefit from its growing international reputation as a global destination of choice for residents, tourists, and businesses alike. The Texas Workforce Commission estimates more than 2.5 million jobs exist in the Houston MSA. The workforce is characterized as young, educated, and highly skilled, which are attractive to businesses and support future job growth. Houston has the lowest median age, 32.8, of the nation's 10 largest metropolitan areas. Currently, more than 1/4th of all adult Houstonians have completed college, compared to 1/5th of the U.S. adult population. Houston has the lowest cost of living among the nation's 23 largest metropolitan area, a key contributor to Houston's ability to continually rank among the nation's most desirable cities for companies looking to relocate or expand their operations. Housing Thus far, Texas has weathered the national real estate crunch without significant damage to property values. Sales and construction activity dropped to pre-2007 levels but began to shows signs of recovery in A total of 4,170 building permits for single-family homes were issued in December 2010, 887 fewer than a year ago. In the 12 months ending in December 2010, 62,980 permits were issued, 1 percent less than one year ago. The number of multi-family building permits issued rose from 989 in December 2009 to 1,200 in December During the 12 months ending in December 2010, 18,716 permits were issued, 12 percent more than one year ago. In December 2010, sales of existing single-family homes increased by 16 percent from the previous month, to a total of 15,752. December 2010 home sales were 3 percent lower than in December In Texas, the median price for existing single-family homes increased by 4.1 percent from December 2009 to December Texas experienced foreclosure filings in January Consumer Confidence Index U.S. consumer confidence increased by 14 percent from December 2010 to January 2011, rising to Consumer Confidence now stands 7 percent higher than one year ago. The Texas region s consumer confidence index increased from 69.5 in December 2010 to 90.8 in January 2011, and is now up 26 percent from its level one year ago. Oil and Natural Gas Natural gas and oil production tax collections combined are 70 percent higher for the first five months of fiscal year 2011 compared to the same period in By contrast, fiscal 2010 oil and natural gas production tax collections combined were 24 percent lower than collections in After reaching a 2008 summer high closing price of $ to a low of $33.98 during February 2009, crude oil futures reached a settled price of $86.73 on Feb. 10, Similarly, natural gas futures prices have followed a similar path reaching a summer 2008 high of $13.58 and then falling to a Sept. 3, 2009 low of $2.51. Prices recently settled at $3.99 on Feb. 10, Taxes Texas sales tax receipts for January 2011 were 10.4 percent higher than for January For fiscal 2010, state sales tax receipts were down 6.6 percent from fiscal Motor vehicle sales tax collections for January 2011 were 19.6 percent higher than for January Nationally, leases accounted for 28.1 percent of new vehicle sales in November 2010, an increase of 15.6 percent from November Source: Texas Ahead, February 11, Texas Comptroller's Office

43 F6/Midtown Portfolio Area Information AREA INFORMATION Montrose, a central Houston community established in 1911, is a demographically diverse neighborhood with renovated mansions, bungalows with wide porches, and cottages located along tree-lined boulevards. Montrose is a major cultural hub. The area was named as one of the "ten great neighborhoods in America" by the American Planning Association, in Because of the inclusion of Montrose, the Houston Heights, and the Rice University area, it is nicknamed "hipstrict", referring to its progressive and urban ethic Montrose houses five of the city's 15 designated historic districts. Houston Mayor, Anise Parker, a longtime resident of Montrose, started her political career by representing Montrose as an at-large city council member. Development over the years has maintained, if not added to, the community s distinctive personality which encompasses an interesting selection of architecture. Whether its antique shopping in the West Gray/River Oaks shopping areas, enjoying art, science or history at one of the various museums or simply hanging with friends at a local restaurant or bar, there is always something to see and do in the Montrose area. AREA DEVELOPMENT 2900 West Dallas, is the newest project claiming land in Houston's Inner Loop. Developed by Marvy Finger of the Finger Companies, this six-story, 435 unit, luxury apartment development that cost approximately $85 million to construct has upscale amenities from tile entries to red oak wood flooring. Reportedly, white collar job growth in the area has boosted the demand for luxury rentals. Residents began moving into the upscale complex in November and when its all complete there will be four pools, beautifully landscaped courtyards, a two-story fitness center, a marble staircase and the list goes on. A 755 sq.ft. one bedroom unit starts at $1700 and a 1,551 sq.ft. two bedroom starts at $2600. The property is currently 35% pre-leased and tenants range from legal and energy industry professionals to retirees. Source: Houston Chronicle

44 F6/MIDTOWN PORTFOLIO RENT COMPS RENT COMPARABLES (January 2014 O'Connor & Associates) Property Name Yr Blt Occ #Units Avg SF Avg Rent P/SF Dunlavy 2212 Dunlavy Huldy 2020 Huldy California 1507 California 4 Carriage Square 2320 McCue % $950 $ % $1,053 $ % $1,125 $ % $1,353 $ Marquee Uptown 2306 McCue % $1,518 $1.48 Totals/s of Rent Comps % 838 $1,220 $1.46 Sub-Market s(montrose/memorial Heights) 87% 5, $1,361 $1.45 Houston Market Avgs 91% 591, $826 $ Whitney % $865 $ Garrott % $1,086 $ Yupon % $879 $ Banks % $1,396 $ Norfolk 1961/ % $1,350 $ Portsmouth % $1,408 $ Richton % $1,132 $ Drake % $1,039 $ Park St % $1,238 $ Garrott % $1,137 $ Garrott % $955 $ West Alabama % $1,047 $1.77 Totals/s of Subject Properties % 640 $1,128 $1.79

45 F6/MIDTOWN PORTFOLIO SALES COMPS SALES COMPARABLES Property Name Date Sold Price Sq. Ft. Price/Unit Price/SF Built Units 1 Branard McDuffie 2010 Branard 3/13 $1,450,000 14,144 $85,294 $ Hyde Park 1410 Hyde Park Pending $3,850,000 30,000 $104,054 $ Gramercy Place 242 Portland 4/13 $3,600,000 25,961 $116,129 $ Aftonshire 4722 Aftonshire 6/13 $730,000 5,100 $121,667 $ Garrott 4105 Garrott 12/12 $665,000 4,286 $83,125 $ Totals/s of Sales Comps $2,059,000 15,898 $102,054 $ Whitney Market 3,560 N/A N/A Garrott Market 9,232 N/A N/A Yupon Market 4,950 N/A N/A Banks Market 5,748 N/A N/A Norfolk Market 29,807 N/A N/A 1961/ Portsmouth Market 24,222 N/A N/A Richton Market 12,236 N/A N/A Drake Market 10,201 N/A N/A Park St Market 12,533 N/A N/A Garrott Market 11,487 N/A N/A Garrott Market 7,711 N/A N/A West Alabama Market 9,457 N/A N/A Totals/Avg of Subjects Market 141,144 N/A N/A

46 F6/MIDTOWN PORTFOLIO DEMOGRAPHICS 1 Mile 3 Mile 5 Mile EDUCATION BUSINESS INCOME RACE AND ETHNICITY HOUSEHOLDS POPULATION (AGE 25+) 2011 Estimated Population 20,919 77, , Projected Population 23,106 85, , Census Population 20,044 74, , Census Population 16,959 64, ,957 Projected Annual Growth 2011 to % 2.1% 2.1% Historical Annual Growth 2000 to % 1.6% 1.1% 2011 Median Age Estimated Households 10,572 38,520 89, Projected Households 11,596 42,244 98, Census Households 10,128 36,900 85, Census Households 8,720 32,612 79,807 Projected Annual Growth 2011 to % 1.9% 1.9% Historical Annual Growth 2000 to % 1.4% 0.9% 2011 Estimated White 81.4% 79.4% 72.2% 2011 Estimated Black or African American 3.7% 4.2% 6.0% 2011 Estimated Asian or Pacific Islander 10.3% 10.4% 10.1% 2011 Estimated American Indian or Native Alaskan 0.2% 0.3% 0.6% 2011 Estimated Other Races 4.4% 5.7% 11.1% 2011 Estimated Hispanic 12.2% 15.5% 27.5% 2011 Estimated Household Income $144,592 $145,591 $125, Estimated Median Household Income $106,127 $105,251 $89, Estimated Per Capita Income $73,030 $72,319 $58, Estimated Elementary (Grade Level 0 to 8) 1.8% 2.3% 8.0% 2011 Estimated Some High School (Grade Level 9 to 11) 2.0% 2.3% 4.3% 2011 Estimated High School Graduate 7.9% 7.9% 9.8% 2011 Estimated Some College 12.8% 13.3% 14.3% 2011 Estimated Associates Degree Only 4.4% 4.0% 4.0% 2011 Estimated Bachelors Degree Only 39.4% 37.2% 32.4% 2011 Estimated Graduate Degree 31.7% 33.1% 27.3% 2011 Estimated Total Businesses 2,174 10,113 20, Estimated Total Employees 27, , , Estimated Employee Population per Business Estimated Residential Population per Business % 4% 12% 9% 72% White Black Asian Other Hispanic % 87.8% $144,592 Subject $72,073 Houston Non- Hispanic Hispanic

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48 EXCLUSIVELY PRESENTED BY KET ENTERPRISES INCORPORATED 4295 San Felipe, Suite 355 Houston, TX FOR MORE INFORMATION ON THIS PROPERTY PLEASE CALL: TOM WILKINSON, Broker (713) xt 102 or MARK KALIL, Broker (713) Tel: (713) Fax: (713) and MARK KALIL & ASSOCIATES, INC Kirby, Suite 1000 Houston, TX Houston, TX Tel: (713) Fax: (713) Disclaimer: The information contained in this Memorandum reflects material from sources deemed to be reliable, including data such as operating statements, rent rolls, etc. However, we (KET Enterprises Incorporated, any of the Owners or officers, directors, employees, agents or representatives of any such entities) have not verified its accuracy and make no guarantee or representation about it. It is submitted subject to the possibility of errors, omissions, change of rental or other conditions. We include projections, opinions, assumptions or estimates for example only, and they may not represent current or future performance of the property. We make no representations or warranties, expressed or implied, as to the validity, accuracy or completeness of the information provided or to be provided, and nothing herein shall be deemed to constitute a representation, warranty or promise by any such parties as to the future performance of the Property or any other matters set forth herein. You and your tax and legal advisors should verify the information and rely on his accountants or attorneys for legal and tax advice. Rates of return vary daily. No representations are made concerning environmental issues, if any.