RAMA APARTMENTS C

Transcription

1 Exclusive Offering RAMA APARTMENTS C Grade Units Houston, Texas RAMA APARTMENTS Woodfair Dr., Houston, Texas Units 1978 Construction 1 Mile from the New Houston China Town District HOUSTON INCOME PROPERTIES, INC. Bishale Patel Listing Agent License #:

2 TABLE OF CONTENTS EXECUTIVE SUMMARY 3 Offering Summary Property Information Sheets (2 pages) FINANCIAL INFORMATION 6 Actual and Pro Forma Analysis Value Projection at 60 months Post Sale MARKET OVERVIEW 8 Rent Comparisons Sub-Market Overview Primary Market Overview PROPERTY INFORMATION 11 Regional and Area Economics Location Maps Floor Plans / Features / Amenities Harris County Plat / Property Site Map Survey Flood Map County Location Aerial Property Aerials PROPERTY PHOTOS 19 Photo Pages (2 pages) SALE INFORMATION 21 Brokerage Services Information

3 PROPERTY DESCRIPTION Name: Rama Apartment Homes Address: 9290 Woodfair City / State: Houston, TX Offering Summary INVESTMENT PROFILE Type of Sale: Conventional Asking Price: $9,975,000 Current NOI: $755,977 For Current and Projected Proj. NOI: $1,013,296 NOI see analysis on pages 6 and 7 in the financial section Property Type: Multi-family - Garden Style Current Occupancy: 91% As of March 31, 2017 No. Buildings: 24 RUBS: Water-Trash Yr. of Constr./Renov: 1978 Primary Market Area: Houston Materials: Brick / Wood Sub-Market Area: Sharpstown / Westwood Number or Units: 232 Scheduled Potential Rent: $142,250 / Month as of April 2017 Total Rentable SF: Avg. Unit Size: 170,268 SF 734 SF Avg. Rent / Unit: Avg Rent / SF: $ SF Unit The Rama Apartment Community consists of 232 units built in It is well located in Sharpstown / Westwood area of southwest Houston, Texas. The community benefits from its convenient location near near two major transportation arteries of Houston, IH 59 and the Sam Houston Tollway as well as a 6 mile commute to loop 610. The property is located in a densely populated area of Houston. It is within a few miles of the Houston Baptist University, which is undergoing a $160 Million dollar expansion to beautify the area and reposition itself and the economic opportunities in the Sharpstown area. Houston's China Town District with its ever expanding borders sits just 1 mile from the property. Unit Features Fully Equipped Kitchens, Spacious Floor Plans, Fire Places, Pass thru Kitchen Serving Bars, Walk in Closets, Patios / Balconies, Fully Equipped Kitchens, Washer and Dryer Connections, Townhome Floor Plans, Cable Ready, (Interior appointments vary in each design). Community Amenities Cable Available, Convenient Access to Major Transportation Arteries in the area, Within walking distance to Shopping and Dining, On site Laundry Facility, Ample Parking, an Onsite Picnic and Barbeque areas, Pool, Controlled Access, located on the Metro Bus Route. Property Information The current owner has recently replaced some AC's, flooring and flood lights. In addition he has done some roof repair. In 2013 and 2014 a minor exterior rehab was performed. Financing The property is being offered on an "All Cash" basis allowing for unrestricted financing options to a buyer. EXECUTIVE SUMMARY - Page 3 of 22

4 PRICING INFORMATION PROPERTY INFORMATION Asking Price: $9,975,000 Units: 232 Avg Size: 734 Price / Unit: $42,996 Date Built / Renovated: 1978 Price / Sq. Ft. $58.58 "E" Mtr/"W" Mtr: Indiv. / Master (RUBS) Good Upside Potential Post Roof: Pitched and Flat Mansard Renovation / Upgrades Land (Acres) Per HCAD: 6.78 No Owner Financing Rentable Sq Ft: 170,268 TOTAL/AVG COLLECTIONS ( 91% Occupancy as of RR) Mth. May 2017, T 12 Av May 2017 Apr 2017 Mar 2017 Feb 2017 Jan 2017 Dec 2016 Coll. $128,067 $126,656 $126,217 $127,821 $122,457 $128,245 $128,935 Possible Upside with Interior Upgrades. Please do not disturb the on-site staff. To schedule a property tour please contact the listing Broker's office at The Rama Apartment Community is a 232 unit, garden style apartment community located at 9290 Woodfair Drive, just northeast of the intersection of Bissonnet Road and the Sam Houston Tollroad in Southwest Houston. The Property is located less than three miles from over 15,000,000 square feet of commercial office space and nearby to shopping, schools, employment centers, andiswithinahalfmileofthewestwoodgolfandcountryclub. It is also within 1 mile of the ever expanding borders of the vibrant Houston China Town. The Rama Apartments were built in The proprety had a minor exterior rehab in 2013/14 which consisted of, but not limited to, wood replacement, walkway and parking lot repairs, exterior painting, fencing repairs/replacement, landscaping improvements and the renovation of the pool. The property is comprised of 24 two story buildings, plus a leasing office. The exteriors are brick and wood siding built on poured in place concrete foundations with pitched and flat mansard tile roofs. The driveways and parking areas are concrete and provide ample parking for the property s residents and guests. Some units have washer/dryer connections. The property is individually metered for electricity with the residents being responsible for their own electricity bills. The property is set up for water RUBS but the current owner is not utilizing the RUBS system at this time. A new owner could implement the RUBS and the residents would pay their pro rata share of the water/sewer charges, thus increasing the property s income stream. UNIT MIX - Rents as of #Units Notes Type Avg SF Total SF Rent / Rent/ Total Rent Unit SF ,806 11,400 13,750 $500 $525 $550 $13,000 $10,500 $12,100 $0.94 $0.92 $ ,600 $550 $2,200 $ ,268 $550 $6,600 $ ,798 $600 $10,800 $ TH ,932 $600 $31,200 $ D ,666 $675 $25,650 $ D 907 7,256 $700 $5,600 $ FP ,680 $750 $15,000 $ TH ,112 $800 $9,600 $ % ,268 $613 $142,250 $0.84 total units est. occ. avg / sf total / sf avg rent total rent avg$/sf 78% By Unit Type 5% 9% 8% Unit Mix Stats 9% 10% 2% 5% 8% 11% 22% By Sq. Ft. 5% 9% 16% 3% FP 2 2.5TH EXECUTIVE SUMMARY - Page 4 of 22

5 PROPERTY TAX INFOR. HCAD# Taxing Authority Rate/$100 Harris County Alief ISD City of Houston Port of Houston Authy Houston Comm Coll Southwest Mgmt. Dist Rate / $100 of Value: Assessment: $3,584,550 Estimated Property Tax $97,029 CONSTRUCTION FEATURES Hot Water: Gas Fired Boilers Parking: Open Elec Meter: Individual Materials: Brick / Wood HVAC: Electric Individual HVAC Units # of Stories: 2 Water: Master Paving: Asphaltic Concrete Access Gates: Yes # Apt. Buildings: 24 Roof: Pitched and Flat Mansard Units/Acre: Demographics 1 Mile Radius Estimated Population 2016 Asian, 8.30% Other, 21.80% 1 Mile Radius - 36,535 3 Mile Radius - 221,053 Multi-Race, 5.20% Black, 27.10% Ethnicity within a 1 Mile Radius White, 37.60% Estimated Average Income 1 Mile Radius Avg. Income Subject: $32,494 Avg. Income Houston: $67, Est. Hispanic Ethnicity 1 Mile Radius Not Hispanic 40% Hispanic 60% The Rama Apartment Community is a "C" grade, 232 unit, 2 story, garden style apartment complex located in Houston, Texas. This distinctive Class "C" property is located in southwest Houston approximately half way between W Sam Houston Tollway (1/2 mile west of the property) and the Southwest Frwy (just over a 1/2 mile east of the property). It is approximately 6 miles west of Loop 610, positioned between Bissonnet, Beechnut, S. Gessner and Beltway 8 (Sam Houston Tollway). These are all major thoroughfares in the area. This allows ease of access to most of the employment in the immediate and surrounding areas. The property's residents benefit from the nearby schools, employment, entertainment, dining and shopping. There are fast food eateries less than a quarter mile from the property as well as banks, food markets, parks and other entertainment venues. The property is approximately 1 miles south of the border of Houston China Town. Within 2 miles of the property is the Memorial Herman Southwest Hospital which is part of the Memorial Herman Hospital System employing over 20,000 people and the premier private college Houston Baptist University which is undergoing a $160 million dollar expansion that will change the look and potentially reposition the economics of its immediate area. Houston Baptist University approximately two miles northeast of the property, a 158 acre campus in southwest Houston with 2800 students and is estimated to double its student population in the next 5 years. Fastly becoming one of Houston's premier private universities. HBU has begun work on several key components of a broad campus master plan that will ultimately benefit not only the University's student body, but also the surrounding community in southwest Houston. It has plans to expand to the freeway from S Gessner to Beechnut with a 160 Million dollar project to beautify the area and reposition itself and the economic opportunities in the Sharpstown area. It is expected to employ an additional 200 employees once the expansion is complete. Memorial Hermann Southwest Hospital System approximately two miles northeast of the property sits next to the Houston Baptist University. The hospital has been recognized for the last 3 years as one of Americas 50 best hospitals by HealthGrades, an independent health quality ratings company. Memorial Hermann is a world class health system with locations throughout Houston and the surrounding areas and employs in excess of 20,000 people. The Westchase District approximately 3 miles north of the property, covers 4.2 square miles (2,700 acres) and is one of Houston's premier business addresses. The District employs more than 56,000 people. This area is home to 15 million square feet of office space and is becoming one of the fastest growing business centers in Houston, housing over 83 major tenants. Galleria Uptown approximately 6 miles northeast of the property and houses more than 23.6 million square feet of commercial office space which represents approximately 12 percent of Houston s total office space, making it second in size to Downtown Houston. It is home to approximately 2,000 companies, ranging from small to large sized commercial businesses, representing a variety of diverse industries. EXECUTIVE SUMMARY - Page 5 of 22

6 Actual and Pro Forma Analysis Physical Information Financial Information Estimated Proposed Loan Parameters Operating Information Number of Units: 232 Asking Price: $9,975,000 Lender To Be Determined Curr Mkt Rent {Mar 17}: $142,250 Avg Unit Size (SF): 734 Price / Unit: $42, Est. Interest Rate: 4.30% Rents Used on Pro Forma: $149,363 Net Rentable Area: 170,268 Price / SF: $58.58 New 75% of "All In" Cost: $8,003,250 Collec. Used May 2017, T 12 Avg $128,067 Land Area {Acres}: 6.78 Upgrades/Def Maint/Unit: $3,000 Mthly. P & I: $43,581 Collections Annualized : $1,536,807 Units per Acre: 34.2 Total Upgrades/Def Maint: $696,000 Est. Yearly Debt Service: $522,972 Phy. Occ. { }: 91.4% Date Built: 1978 Total "All In" Cost: $10,671,000 Amortizing (months): 300 Est. Ins per Unit per Yr: $350 e Meter: Individual Total "All In" Equity: $2,667,750 Term (Years): 5 Property Tax Information RUBS: Water Trash Reserve/Unit: $ Rate / $100 of Value: Roof Style: Pitched and Flat Mansard 2017 Assessment: $3,584,550 HVAC Sys.: Electric Individual HVAC Estimated Post Sale Tax Assmt: $6,000,000 Estimated Proposed Loan is for a Bank Loan Units Post Sale Assmt. Is the 2017 Tax Assmt increased by Hot Water: and includes Rehab $$ Gas Fired Boilers {67%} Modified Actuals Year 1, Post Acquisition and Renovation Income is May 2017 T-12 Actual Income is Pro forma - Post Renovation Expenses are March 2017 T-12 Actuals Expenses are Pro forma except where noted except where noted REVENUE AND COLLECTIONS Estimate Gross Potential Rent, which includes a {5.0%} Rent Increase which equates to an avg rent of {$644}/U or {.88}/SF 1,792,350 $149,363 / Mo (Loss)/Gain to Lease {1% } of Total Street Rent Estimated (17,924) 1.0% Estimated Gross Potential Income 1,774, % Vacancy (89,618) 5.0% Credit/Concess/Admin/Other Rental Losses Estimated at {5%} (89,618) 5.0% Total Rental Income {Estimated} 1,243,681 $103,640 / Mo 1,595,192 {89.0%} of EGPR Other Income (Includes RUBS Water and Trash) 293,126 $1,263 / Unit / Yr 301,600 $1,300 / Unit / Yr Total Income 1,536,807 $128,067 / Mo 1,896,792 $158,066 / Mo EXPENSES AND RESERVES Fixed Expenses Estimated Estimated Fixed Expenses Fixed Expenses Taxes $97,029 $418 per Unit 2017 Tax Assmt and 2016 rate $162,412 $700 per Unit Est. Post Sale Assmt. and 2016 Rate Insurance Property $50,112 $216 per Unit Estimated $81,200 $350 per Unit Estimated Total Fixed Expense 147,141 $634 / Unit 243,612 $1,050 / Unit Utilities Estimated Estimated Water/Sewer $251,856 $1,086 per Unit $170,000 $733 per Unit Add Water Saving Devices Gas Electricity (Vacant Units and Common Area) $30,609 $13,371 $132 per Unit $58 per Unit $30,609 $13,371 $132 per Unit $58 per Unit Total Utilities 295,837 $1,275 / Unit 213,981 $922 / Unit Other Expenses Estimated Estimated General & Admin Includes Internet $3,464 $15 per Unit $34,800 $150 per Unit Advertising/Marketing $0 $ per Unit $11,600 $50 per Unit Repairs/Maint./Make Ready Exp Payroll + Burden $132,585 $571 per Unit $115,957 $500 per Unit $92,800 $232,000 $400 per Unit $1,000 per Unit Contract Services (Grounds, Pest Control, Trash) Management Fee $16,248 $0 $70 per Unit 0.00% $ per Unit $58,000 $56,904 $250 per Unit 3.00% $245 per UnBased on Total Income Above Total Other Expense 268,253 $1,156 / Unit 486,104 $2,095 / Unit Reserve for Replacement 69,600 $300 / Unit 69,600 $300 / Unit 780,831 1,013,296 Total Operating Expense $3,366 / Unit $4,368 / Unit Net Operating Income $755,977 $3,259 / Unit $883,495 $3,808 / Unit Cap Rate On Asking Price Proposed Debt 7.58% $7,481,250 No Deferred Included 8.86% $8,003,250 With Deferred Included Estimated Cash Equity $2,493,750 25% of Ask Price $2,667,750 25% of "All In" Cost Estimated Debt Service $488,862 No Deferred Included $522,972 With Deferred Included Estimated Cash Flow Cash on Cash Return $267, % $360, % Disclaimer: The information contained herein has either been given to us by the owner of the property or obtained from sources that we deem reliable. We have no reason to doubt its accuracy but we do not guarantee it. Vacancy factors used herein are an arbitrary percentage used only as an example. It does not necessarily relate to actual vacancy, if any. The value of the investment is dependent upon these estimates and assumptions made above, as well as the investment income, the tax bracket and other factors which your tax advisor and/or legal counsel should evaluate. THE PROSPECTIVE BUYER SHOULD CAREFULLY VERIFY EACH ITEM OF INCOME, EXPENSE, AND ALL OTHER INFORMATION CONTAINED HEREIN, and should also perform a detailed inspection of the property. We have not determined whether the property complies with city ordinances and recommend that you determine whether or not the property complies with deed restrictions and any City Permiting requirements, whether or not a certificate has been issued, and whether or not the property contains asbestos, lead paint and/or mold and whether or not the property lies within a flood plain. FINANCIAL INFORMATION - Page 6 of 22

7 Stabilized Value Property Information Number of Units: 232 Approximate Net Rentable Area: 170,268 Date Built / Renovated: 1978 Average Unit Size: 734 Roofs: Pitched and Flat Year 1 Pro-forma Market Rent Post Renovation : $149,363 $644 / Unit $.877 / SF HVAC System: Individual Metering: Electric Individual Water,Gas,Trash Master Est. Occupancy at Stabilization : 95% Projection is based on the stabilized year 1 pro forma with a 3% rent and a 3% expense growth rate for years 2 thru 5 Revenue and Collections STABILIZED PRO FORMA Projected at 60 Months Post Rehab and Income Stabilization Total Gross Rent Potential 2,134, % % of Gross Potential Income Total Other Income Potential 339, % Estimated Gross Potential Income 2,474, % VAC./OTHER RENTAL LOSSES (298,880) {14%} of Gross Rent Potential Total Estimated Gross Annual Income $2,175,429 {88%} of Gross Potential Income Expenses Total Expenses ~ (average Unit size is {734} Sq. Ft.) Reserve for Replacement Total Expenses ~ (average Unit size is {734} Sq. Ft.) (1,015,229) $4,376 / Unit (69,600) $300 / Unit (1,084,829) $4,676 / Unit Estimated Stabilized Net Operating Income $1,090,600 $5.96 / SF Estimated Potential Value Based on a Stabilized NOI of $1,090,600 Cap Rate 7.00% 7.25% 7.50% Value Generated $15,580,002 $67,155 / U $91.50 / SF $15,042,761 $64,839 / U $88.35 / SF $14,541,336 $62,678 / U $85.40 / SF FINANCIAL INFORMATION - Page 7 of 22

8 Competitive Properties Occupancy and Rent Survey - {Rent Comps} Project Address Built # Units Avg. SF / U Avg Rent / U Avg Rent / SF Occ. 1 Mar Del Sol 9303 Woodfair $548 $ % 2 Premier on Woodfair 9502 Woodfair $645 $ % 3 Reserve at Westwood Bissonnet St $955 $ % 4 Riveraine 8181 Colony $703 $ % 5 Sebring 9501 Beechunt $631 $ % 6 Villa Ana W Sam Houston Pkwy $640 $ % Rent Comp Ttls / Average $696 $ % 7 Rama Apartment Homes 9290 Woodfair $613 $ % E D G A B C F A) Mar Del Sol B) Premier on Woodfair C) Reserve at Westwood D) Riveraine E) Sebring F) Villa Ana MARKET OVERVIEW - Page 8 of 22

9 Sub-Market Apartment Market Statistical Overview Summary Property / Unit Information A B C D Overall Total # Projects N/A Total # Units N/A 6,212 16,689 2,427 25,328 Total # Units 0BR N/A 1.20% 2.30% 0.10% 3.60% Total # Units 1BR N/A 10.70% 40.10% 5.50% 56.30% Total # Units 2BR N/A 10.40% 22.20% 3.90% 36.50% Total # Units 3BR N/A 1.30% 2.00% 0.40% 3.60% Total # Units 4BR N/A N/A 0.10% N/A 0.10% Avg Units per Project N/A Avg SF N/A Total # Units Under Construction N/A N/A N/A N/A N/A Total # Units Proposed N/A N/A N/A N/A N/A Occupancy A B C D Overall Avg Physical Occupancy N/A 93% 90% 76% 89% Avg Pre-Leased Occupancy N/A 95% 90% 76% 90% Rental Rates Sharpstown / Westwood Apr-2017 A B C D Overall Avg Market Rent/SF N/A $0.91 $0.82 $0.71 $0.83 Avg Market Rent/SF 0BR N/A $1.22 $0.98 $0.94 $1.06 Avg Market Rent/SF 1BR N/A $0.94 $0.86 $0.77 $0.86 Avg Market Rent/SF 2BR N/A $0.87 $0.79 $0.62 $0.79 Avg Market Rent/SF 3BR N/A $0.84 $0.73 $0.73 $0.77 Avg Market Rent/SF 4BR N/A N/A $0.65 N/A $0.65 Avg Market Rent/Unit N/A $754 $618 $587 $648 Avg Market Rent/Unit 0BR N/A $516 $487 $436 $496 Avg Market Rent/Unit 1BR N/A $637 $560 $534 $572 Avg Market Rent/Unit 2BR N/A $857 $749 $635 $767 Avg Market Rent/Unit 3BR N/A $1,004 $883 $909 $928 Avg Market Rent/Unit 4BR N/A N/A $1,020 N/A $1,020 Absorption (In Units) A B C D Overall Current Month-to-Date N/A N/A Current Quarter-to-Date N/A N/A Year-to-Date N/A MARKET OVERVIEW - Page 9 of 22

10 Primary Market Apartment Market Statistical Overview Summary Property / Unit Information A B C Overall Total # Projects 770 1, ,873 Total # Units 207, , ,155 18, ,135 Total # Units 0BR 0.20% 1.10% 0.70% 0.00% 2.00% Total # Units 1BR 16.20% 20.60% 12.50% 1.20% 50.40% Total # Units 2BR 11.30% 16.20% 11.20% 1.50% 40.30% Total # Units 3BR 1.60% 2.90% 1.80% 0.40% 6.60% Total # Units 4BR 0.00% 0.40% 0.10% 0.00% 0.60% Avg Units per Project Avg SF Total # Units Under Construction 15, N/A 32 15,605 Total # Units Proposed 7, N/A N/A 7,470 Occupancy A B C Overall Avg Physical Occupancy 90% 92% 90% 85% 90% Avg Pre-Leased Occupancy 91% 93% 90% 86% 91% Rental Rates Houston, Texas Apr-2017 A B C Overall Avg Market Rent/SF $1.35 $0.98 $0.87 $0.73 $1.05 Avg Market Rent/SF 0BR $1.96 $1.31 $1.13 $0.93 $1.30 Avg Market Rent/SF 1BR $1.44 $1.06 $0.93 $0.81 $1.14 Avg Market Rent/SF 2BR $1.26 $0.93 $0.84 $0.71 $0.99 Avg Market Rent/SF 3BR $1.19 $0.85 $0.80 $0.69 $0.91 Avg Market Rent/SF 4BR $1.08 $0.77 $0.84 $0.71 $0.79 Avg Market Rent/Unit $1,270 $805 $696 $637 $908 Avg Market Rent/Unit 0BR $1,103 $608 $530 $420 $623 Avg Market Rent/Unit 1BR $1,117 $725 $614 $551 $819 Avg Market Rent/Unit 2BR $1,454 $904 $783 $678 $1,017 Avg Market Rent/Unit 3BR $1,724 $1,016 $971 $862 $1,165 Avg Market Rent/Unit 4BR $1,670 $1,052 $1,127 $929 $1,078 Absorption (In Units) A B C Overall Current Month-to-Date N/A Current Quarter-to-Date N/A Year-to-Date MARKET OVERVIEW - Page 10 of 22

11 Texas Regional Economic Information Regional and Area Economics Houston Area Economic Information Texas' economic outlook: The Texas Unemployment rate is 4.9% for February 2017, the national average is 4.9%. Small businesses are hiring workers at a healthy pace, and Texas ranks fourth in the nation in jobs added by companies that employ fewer than 50 people. These small employers are helping soften the blow of layoffs in the oil and gas industry brought on by low commodity prices. They are indicative of a diverse economy. Liquefied Natural Gas exports: Thanks to the shale boom, the United States has moved from a position of energy scarcity to a position of strength and abundance. By liquefying surplus natural gas supplies and exporting it to allies overseas, the U.S. is able to solidify its place as a global energy provider while at the same time creating jobs at home and strengthening our own economy. Texas is uniquely positioned to become a leader in the next chapter in America's energy transformation due to our abundant natural gas supply, infrastructure and access to deep water ports. According to studies, LNG exports will create up to 155,000 Texas jobs in construction, operations, exploration and production by 2035 and contribute up to $31.4 billion to our local economies. LNG exports are expected to generate as much as $86 billion in net benefits to the U.S. economy and help create up to 2.4 million American jobs by 2035, according to a recent report from NERA Economic consulting. Additionally, a 2015 peer reviewed study by Carnegie Mellon University found that exporting LNG from the U.S. to Asia or Europe can help reduce greenhouse gas emissions compared with burning coal. Texas Ports: Houston, widely known as a major port for foreign trade, ranks second in the U.S. for domestic maritime jobs. The local strength helped boost Texas to a No. 3 ranking among states, according to the PricewaterhouseCoopers study commissioned by the American Maritime Partnership. It estimated the industry has an economic impact of nearly $8 billion in the state. The report demonstrates exactly just how much of an economic driver that Texas' maritime industry is for the local economy, the state's economy and the national economy. The area is a world leader in the maritime industry. Texas supports about 39,000 domestic maritime jobs. Population: It is estimated that the Texas population will soon grow by an amazing 120 percent. Texas added more people between July 2014 and July 2015 than any other state, according to new U.S. Census population data released March Nearly two thirds of the almost 500,000 new Texas residents migrated from other states as Dallas, Houston, Austin and other metro areas lured companies ranging from Toyota and State Farm to Kubota and JP Morgan Chase. Most have taken advantage of generous relocation incentive packages offered by Texas while fleeing high housing, taxes and business cost areas. Texas s success in luring people and companies has created a more diversified economy that has helped shield the Lone Star State from the worst effects of the oil crash. Houston and Dallas FortWorthplacedfirstandsecondinpopulationgainsamong the largest U.S. metropolitan areas Houston is thriving! Even as oil prices have declined over the past few years, people are still moving to Houston, buoyed by the city s thriving medical, Petrochemical and technology sectors. Expansionintheseand other economic sectors is expected to moderate the overall negative impact and generate growth in years to come. The big driver is petrochemical expansions as well as the near completion of the Panama Canal expansion and the Port of Houston and Eastern seaboard are almost finished. Houston's health care development is booming due to several factors such as the impact from the Texas Medical Center, a growing and aging population base and the Affordable Care Act. According to Trans western's Houston Healthcare Market first quarter 2016 report there is roughly $5 billion in medical construction and development underway in the Bayou City. It's not just hospitals being built, medical office buildings are on the rise, and Houston's biggest health care institutions, such as Memorial Hermann, Houston Methodist and Baylor College of Medicine all are expanding their presence in Houston's suburbs. The costliest medical office building under construction belongs to Memorial Hermann, which is building a $66.5 million, 175,000 sf medical office building in The Woodlands and is to be completed in Analysts expect a booming petrochemical market and healthy retail developments to help mitigate the negative effects of declining oil prices. Between 2010 and 2023, more than 200 U.S. chemical production projects worth $147 billion are expected to have been completed in the Gulf Coast region. Houston's industrial market has gotten stronger since 2002, andthat pattern should continue in the upcoming year demand and transactions that are in lease negotiations or are in a negotiation for design are strong. Houston s retail market is poised for a strong growth year. Driven by rapid five year population gains and an expanding consumer base, Houston s retail sector lags the city s other commercial sectors and is currently in the midst of new development and robust leasing cycles. Suburban development, particularly surrounding the newly opened 180 mile long Grand Parkway circumnavigating the entire metro area, will kick start Houston s next large scale series of retail expansion. More than 8,000 freighters and tankers docked at the Port of Houston in The Texas Medical Center will treat another 7.2 million patients. Area refiners will continue to supply one fourth of the nation s gasoline, diesel and jet fuel needs. More than 125,000 Houstonians hold jobs in manufacturing not tied to upstream energy. The surge in chemical plant construction won t peak for another year. More than 5,700 Houston firms engage in international business and that number is expected to rise as more businesses seek opportunities overseas. PROPERTY INFORMATION - Page 11 of 22

12 Location Maps Rama Apartments 9290 Woodfair Houston, Tx From North Houston: Travel south on US 59. Exit Bissonnet St. Turn right on Club Creek Dr. Turn left onto Woodfair Dr. The property will be on the right. From South Houston: Travel north on US 59. Exit Bissonnet St. Turn left on Bissonnet St. Turn right onto Woodfair Dr. The property will be on the left. PROPERTY INFORMATION - Page 12 of 22

13 Sample Floor Plans 2B 2B 984 SF 1B 1B SF 1B 1.5B TH SF 2B 2.5B TH 1176 SF Floor Plans shown are a sampling of the units and may or may not be exact in size and shape. Amenities 1B 1B SF Community Amenities: Pool, Patios / Balconies, Laundry Facilities, Picnic Areas with Grills and Tables, On Metro Bus Route, Controlled Access Gates, On Site Management Unit Amenities: Spacious Floor Plans, Fire Places, Pass thru Kitchen Serving Bars, Walk in Closets, Patios / Balconies, Fully Equipped Kitchens, Washer and Dryer Connections, Townhome Floor Plans Features Vary by Individual Floor Plan PROPERTY INFORMATION - Page 13 of 22

14 Harris County Plat S Property Site Map PROPERTY INFORMATION - Page 14 of 22

15 Property Survey PROPERTY INFORMATION - Page 15 of 22

16 Flood Map Rama Apartments 9290 Woodfair Houston, Tx DISCLAIMER: While the floodplain data that is shown on the map is the same, this map is not an official effective FEMA Flood Insurance Rate Map (FIRM). This map is for information purposes only. For an official flood zone determination please contact your insurance agent or floodplain administrator. PROPERTY INFORMATION - Page 16 of 22

17 County Location Aerial Rama Apartments 9290 Woodfair Houston, Tx PROPERTY INFORMATION - Page 17 of 22

18 Aerials H E B Kingsway Buffet Viet Hoa International Foods Lee's Sandwitches KFC International Oilwell City Pets Bluebonnet Learning Center Westwood Golf Club Food Town Grociery Harmony School of Innovation Walmart Supercenter Sterling McCall Toyota PROPERTY INFORMATION - Page 18 of 22

19 Property Photos PROPERTY PHOTOS - Page 19 of 22

20 Property Photos PROPERTY PHOTOS - Page 20 of 22

21 Brokerage Services Disclaimer: The information contained herein has either been given to us by the owner of the property or obtained from sources that we deem reliable. We have no reason to doubt its accuracy but we do not guarantee it. Vacancy factors used herein are an arbitrary percentage used only as an example. It does not necessarily relate to actual vacancy, if any. The value of the investment is dependent upon these estimates and assumptions made above, as well as the investment income, the tax bracket and other factors which your tax advisor and/or legal counsel should evaluate. THE PROSPECTIVE BUYER SHOULD CAREFULLY VERIFY EACH ITEM OF INCOME, EXPENSE, AND ALL OTHER INFORMATION CONTAINED HEREIN, and should also perform a detailed inspection of the property. We have not determined whether the property complies with city ordinances and recommend that you determine whether or not the property complies with deed restrictions and the City of Houston life safety ordinance, whether or not a certificate has been issued, and whether or not the property contains asbestos, lead paint and/or mold and whether or not the property lies within a flood plain. SALE INFORMATION - Page 21 of 22

22 Houston Income Properties, Inc. Brokering Since 1988 Houston Income Properties, Inc. License# Jim Hurd President - Broker Austin and Houston Locations jhurd@houstonincomeproperties.com Houston Office Brokers / Agents: Jim Hurd - Broker - President jhurd@houstonincomeproperties.com HOUSTON OFFICE 6363 Woodway #370 Houston, Texas AUSTIN OFFICE 912 S. Capital of Texas Hwy # 230 Austin, Texas Gwyn VonHeeder Agent Vice President Operations gvonheeder@houstonincomeproperties.com Bishale Patel Broker Vice President of Sales bpatel@houstonincomeproperties.com Peter Huang Sales Associate phuang@houstonincomeproperties.com Mitul Patel Sales Associate mpatel@houstonincomeproperties.com Austin Office Brokers / Agents: Jim Hurd President - Broker jhurd@houstonincomeproperties.com Peter Huang Sales Associate phuang@houstonincomeproperties.com