Windemere Apartments 2001 Wesley Arlington, TX 76012

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1 OFFERING MEMORANDUM 60 UNITS Windemere Apartments Investment Highlights 9.66% CAP RATE 98% Physical Occupancy New Roofs in 2009 Value Add: Rental Increases/RUBS Onsite laundry Facility Exterior Paint in 2010 Exclusively Offered by: Dallas Office: Dallas Pkwy, Ste 1275 Dallas, TX Office West Texas Office: th Street Lubbock, TX Office Fax

2 exterior photographs

3 PROPERTY DESCRIPTION & AMENITIES / STRUCTURAL & MECHANICAL OVERVIEW DESCRIPTION UTILITY OVERVIEW Windemere Apartments is a 60 unit, Class C residential community located in North Arlington. The property is comprised of a nice unit mix of, one s, two s and three bedroom floor plans with spacious footages. It was built in 1983 and renovated 2000 with all new roofs in 2009 and 2010 exterior paint. The property has the lowest rents PSF of all its competitors and the timing would be optimal for rental increases and/or utility bill-back of water. Frost Free Refrigerators Icemakers Mini-Blinds Self-cleaning Ovens Ceiling Fans Walk-In Closets Patio or Balcony Dishwasher/Disposal W/D Connections in 3/2 s UNIT AMENITIES COMMUNITY AMENITIES Swimming Pool Lush Landscaping Laundry Facility On-Site Management School Bus Pick Up BBQ Grills / Picnic Area Electricity Individual Water / Sewer master Metered Paid by Landlord rubs Billing :: Velocity Gas master Metered Paid by Landlord Trash Paid by Landlord Telephone Individually Metered Paid by Resident :: AT&T Cable Individually Metered Paid by Resident :: AT&T High-Speed Internet Individually Metered Paid by Resident :: Resident s Choice HVAC Individual Air-Forced Units (Electric AC & Heat) Hot Water Individual CONSTRUCTION OVERVIEW Built 1983 / Renovated in 2000 Building Style garden Style Foundations Poured Concrete Slab on Grade Building Exterior Brick Veneer & Siding Roofs Pitched; Composition Shingles replaced 2009 Stairways metal Stingers, Risers & Rail ings withconcrete Treads Patios / Balconies Poured Concrete Windows single-pane Glass in Metal Frames Gutter System n/a Interior Parking & Drives Poured & Striped Concrete Interior Curbs & Sidewalks Poured Concrete

4 SITE SUMMARY PROPERTY OVERVIEW No. Units 60 Net Rentable SF 47,600 (per rent roll) Avg. Unit SF 793 Built 1983 / Reno 2000 No. Buildings 6 Stories 2 Parking Spaces Unknown PROPERTY STAFF Owner Managed Part-time Manager 1 SITE OVERVIEW EMPLOYEE / MODEL UNITS Gross Land Area (Acres) Gross Land Area (SF) Zoning /- per Tarrant CAD 112,167 +/- per Tarrant CAD B1 Employee Units Model Unit n/a n/a OFFERING SUMMARY Offering Price $1,900,000 Price / Unit $31,666 Price / Rentable SF $39.91 Terms ALL CASH No. Units 75 Rentable SF 47,600 (Per Rent Roll) Structure SF 55,840 (per Tarrant CAD)

5 MARKET AREA SUMMARY POPULATION fort worth, TX The Dallas-Fort Worth-Arlington MSA is one of the fastest growing metro areas in the nation. The estimated population for the North Texas Region is 6,637,230. In 2009, Fort Worth s population grew to 720,250, the 17th largest city in the nation. Both the City of Fort Worth and the Fort Worth - Arlington Metro Division (Tarrant, Johnson, Parker and Wise Counties) populations continue to grow. Fort Worth added 17,400 new residents in 2008, leading the region s growth. The same year, Tarrant County added 27,650 persons, pushing the county s total population to 1,807,750 residents. The Fort Worth - Arlington Metro Division forms the western half of the Dallas-Fort Worth Metroplex. With a population of over 6.6 million, the DFW Metroplex is the largest market in the southern U.S. and fourth largest in the nation. TOP FORT WORTH EMPLOYERS Company Employment employees AMR/American Airlines 24,540 Texas Health Resources 18,448 Lockheed Martin Aeronautics Company 13,500 Fort Worth ISD 10,316 Arlington ISD 8,126 City of Fort Worth 6,558 Bell Helicopter Textron, Inc. 5,718 University of Texas at Arlington 5,422 JPS Health Network 4,633 Texas Health Harris Methodist Fort Worth 4,500 Cook Children s Health Care System 4,326 Chase Bank 4,200 Tarrant County Government 4,173 Keller ISD 3,492 Alcon Laboratories 3,299 Fidelity 3,200 market information/articles Dallas-Fort Worth apartment demand surges in quarter 12:00 AM CDT on Wednesday, September 29, 2010 By STEVE BROWN / The Dallas Morning News Renters gobbled up twice as many apartments in Dallas-Fort Worth as developers added to the market in the third quarter. The surge in demand was enough to increase rents by more than 1 percent, the first gain in more than a year, according to statistics from MPF Research Inc. Average monthly rent in the D-FW area is up to $762 in the third quarter. Fantastic lease-ups for the recently completed apartments are playing a huge role in the general upturn, said Greg Willett, vice president of research for the Carrollton-based apartment analyst. The improving local economy is helping to produce the apartment demand momentum that is needed to get the market back on track. Through August, about 30,000 jobs have been added to the North Texas economy from the same time last year. The employment rebound and mortgage standards that make it harder to buy a home are fueling an apartment rental boom. During the third quarter, D-FW area renters leased an additional 7,800 apartments. That brings the net leasing total so far in 2010 to 22,970 units. Just in the last nine months, net apartment leasing in North Texas has been stronger than the last four years combined, according to MPF Research s figures. And 9,200 apartments have opened in D-FW so far in About 4,300 apartments remain in the construction pipeline. No wonder apartment vacancy rates dropped in the area to 8.5 percent at the end of September. The biggest jump in leasing has been in new high-end rental units, Willett said. Coming out of a slump, it s usually the top end of the market where recovery is first apparent, and that s what we re seeing now, he said. Once we get a little farther down the road, progress will begin to show up more clearly in the middle tier and bottom end of the product spectrum. Some Dallas-area apartment markets have seen significant increases in occupancy this year, including a 14 percentage point gain in Frisco and a 7 percent rise in central Dallas. Apartment rents have increased more than 6 percent in North Fort Worth, Frisco and central Dallas. The spike in apartment leasing has been high enough that developers have broken ground on more than 1,100 apartments in the area this year. But with lenders keeping a tight fist on construction loans, analysts don t anticipate that apartment development will keep up with demand in the months ahead. Tenants can expect more rent increases and fewer giveaways if that s the case.

6 0.5 MI DEMOGRAPHICS Subject Number Percent Subject Number Percent Total population 5, % HISPANIC OR LATINO AND RACE SEX AND AGE Total population 5, % Male 2, % Hispanic or Latino (of any race)* 1, % Female 2, % Mexican Salvadoran Under 5 years % Puerto Rican 5 to 9 years % South American 10 to 14 years % Cuban 15 to 19 years % Honduran 20 to 24 years % Guatemalan 25 to 34 years 1, % Other Hispanic or Latino 35 to 44 years % Not Hispanic or Latino 4, % 45 to 54 years % White alone 3, % 55 to 59 years % 60 to 64 years % RELATIONSHIP 65 to 74 years % Total population 5, % 75 to 84 years % In households 5, % 85 years and over % Householder 2, % Spouse % Median age (years) 37.3 Child 1, % Own child under 18 years 1, % 18 years and over 4, % Other relatives % Male 2, % Under 18 years % Female 1, % Nonrelatives % 21 years and over 3, % Unmarried partner* 62 years and over % In group quarters 6 0.1% 65 years and over % Institutionalized population 0 0.0% Male % Noninstitutionalized population 6 0.1% Female % HOUSEHOLDS BY TYPE RACE Total households 2, % One race 5, % Family households (families) 1, % White 3, % With own children under 18 years % Black or African American % Married-couple family % American Indian and Alaska Native % With own children under 18 years % Asian* % Female householder, no husband present % Asian Indian 0 0.0% With own children under 18 years % Cambodian 0 0.0% Nonfamily households % Chinese 0 0.0% Householder living alone % Filipino 0 0.0% Householder 65 years and over % Japanese 0 0.0% Korean 0 0.0% Households with individuals under 18 years % Laotian 0 0.0% Households with individuals 65 years and over % Pakistani 0 0.0% Vietnamese 0 0.0% Average household size 2.47 Other Asian (1) 0 0.0% Average family size 2.89 Native Hawaiian and Other Pacific Islander* 3 0.1% Native Hawaiian 0 0.0% HOUSING OCCUPANCY Guamanian or Chamorro 0 0.0% Total housing units 2, % Samoan 0 0.0% Occupied housing units 2, % Tongan 0 0.0% Vacant housing units % Other Pacific Islander (2) 3 0.1% For seasonal, recreational, or occasional use 7 0.3% Some other race % Two or more races % Homeowner vacancy rate (percent) 2.4 (X) Rental vacancy rate (percent) 9.3 (X) Race alone or in combination with one or more other races: (3) HOUSING TENURE White 3, % Occupied housing units 2, % Black or African American % Owner-occupied housing units % American Indian and Alaska Native % Renter-occupied housing units 1, % Asian % Native Hawaiian and Other Pacific Islander 4 0.1% Average household size of owner-occupied units 2.48 (X) Some other race % Average household size of renter-occupied units 2.71 (X) For information on confidentiality protection, nonsampling error, and definitions, see Source: U.S. Census Bureau, Compiled by the North Central Texas Council of Governments

7 LOCATION MAP / AERIAL MAP LOCATION MAP AERIAL MAP

8 PRO FORMA INCOME & EXPENSES Income PRO FORMA INCOME & EXPENSES Windemere Apartments, Units Type Unit SF Total SF Market Rent Monthly Annual Mkt. Rent Mkt. Rent Rent / SF 40 1 Bed / 1 Bath ,960 $495 $19,800 $237,600 $ Bed / 2 Bath ,440 $675 $10,800 $129,600 $ Bed / 2 Bath 1,300 5,200 $900 $3,600 $43,200 $ ,600 $570 $34,200 $410,400 $0.72 WBG Pro Forma Seller's 2011 (Jan- Mar) Annualized 2011 (Jan-Mar) Annualized w/ Add.'s Scheduled Market Rent $410,400 $374,100 $374,100 Less: Loss to Lease 1.00% ($4,104) $0 $0 $0 Less: Vacancy 5.00% ($20,520) ($21,420) ($21,420) $0 Less: Concessions 0.00% $0 $0 $0 $0 Less: Non-Revenue Units & Bad Debt 1.00% ($4,104) $0 $0 $0 Net Rental Income $381,672 $352,680 $352,680 $0 Plus: Fee Income $600 $0 $0 $8,320 Plus: Laundry $3,000 $0 $0 $0 Total Operating Income (EGI) $385,272 $352,680 $352,680 $8, Actuals Expenses Per Unit Administrative $125 $7,500 $0 $7,500 $5,877 Advertising & Promotion $50 $3,000 $0 $3,000 $1,970 Payroll $600 $36,000 $21,600 $21,600 $98,585 Repairs & Maintenance $536 $32,160 $32,160 $32,160 $79,779 Management Fee 5.00% $321 $19,264 $0 $17,634 $27,989 Utilities $608 $36,454 $35,360 $35,360 $241,674 Real Estate Taxes $670 $40,227 $40,227 $40,227 $43,762 Insurance $196 $11,736 $11,736 $11,736 $25,664 Total Expenses $186,341 $141,083 $169,217 $525,300 Per Unit: $3,106 $2,351 $2,820 $8,755 Per SF: $3.91 $2.96 $3.55 $11.04 Net Operating Income $198,931 $211,597 $183,463 -$516,980 Less: Debt Service ($102,523) ($102,523) ($102,523) ($102,523) Projected Net Cash Flow $96,408 $109,074 $80,940 ($619,503) Total Economic Loss 7.0% 5.7% 5.7% #DIV/0! Cash-on-Cash Return (Based on Ask High Low Price) 19.71% 19.92% 20.80% 22.29% 22.52% 22.97% 16.54% 16.74% 17.19% % % % Debt Service Coverage 1.94 Cap Rate Analysis Price $/Unit $/Foot Cap Rate Cap Rate Cap Rate Cap Rate Offering Price Expected High Offer $1,900,000 $1,890,000 $31,667 $31,500 $39.92 $ % 10.45% 11.20% 11.14% 9.71% 9.66% % % All Financing Total Loan Amount Down Payment LTV Mo. Payment Debt Constant $1,425,000 $489,250 75% ($8,544) 7.2% Existing Assumable Loans Original Amount Current Balance Interest Rate Amort. Payment Orig. Date Current Date $0 $0 0.00% 30 $0 September-05 April-11 $0 $0 5.75% 30 $0 April-11 New First Mortgage LTV for this loan Amount Interest Rate Amortization Payment Fees I/O Term (yrs) 75% $1,425, % 30 ($8,544) 1.00% 5 COMMERICAL REAL ESTATE This is an opinion of value or comparative market analysis and should not be considered an appraisal. In making a decision that relies upon our work, you should know that we have not followed the guidelines for development of an appraisal or analysis contained in the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation.

9 rent roll and financials COMMERICAL REAL ESTATE This is an opinion of value or comparative market analysis and should not be considered an appraisal. In making a decision that relies upon our work, you should know that we have not followed the guidelines for development of an appraisal or analysis contained in the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation.

10 rent roll and financials COMMERICAL REAL ESTATE This is an opinion of value or comparative market analysis and should not be considered an appraisal. In making a decision that relies upon our work, you should know that we have not followed the guidelines for development of an appraisal or analysis contained in the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation.

comparable apartment analysis COMMERICAL REAL ESTATE This is an opinion of value or comparative market analysis and should not be considered an appraisal.

11 comparable apartment analysis COMMERICAL REAL ESTATE This is an opinion of value or comparative market analysis and should not be considered an appraisal. In making a decision that relies upon our work, you should know that we have not followed the guidelines for development of an appraisal or analysis contained in the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation.

12 LEGAL DISCLAIMER The material contained in this document is confidential, furnished solely for the purpose of considering investment in the property described therein and is not to be copied and / or used for any purpose or made available to any other person without the express written consent of W Brokerage Group. In accepting this, the recipient agrees to keep all material contained herein confidential. The Seller retains the right to withdraw, modify or cancel this offer to sell at any time and without any notice or obligation. Any sale is subject to the sole and unrestricted approval of Seller, and Seller shall be under no obligation to any party until such time as Seller and any other necessary parties have executed a contract of sale containing terms and conditions acceptable to Seller and such obligations of Seller shall only be those in such contract of sale. This information package has been prepared to provide summary information to prospective purchasers and to establish a preliminary level of interest in the property described herein. It does not, however, purport to present all material information regarding the subject property, and it is not a substitute for a thorough due diligence investigation. In particular, W Brokerage Group and seller have not made any investigation of the actual property, the tenants, the operating history, financial reports, leases, square footage, age, or any other aspect of the property, including but not limited to any potential environmental problems that may exist and make no warranty or representation whatsoever concerning these issues. The information contained in this information package has been obtained from sources we believe to be reliable; however, W Brokerage Group and Seller have not conducted any investigation regarding these matters and make no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. Any proformas, projections, opinions, assumptions or estimates used are for example only and do not necessarily represent the current or future performance of the property. W Brokerage Group and Seller strongly recommend that prospective purchasers conduct an in-depth investigation of every physical and financial aspect of the property to determine if the property meets their needs and expectations. We also recommend that prospective purchasers consult with their tax, financial and legal advisors on any matter that may affect their decision to purchase the property and the subsequent consequences of ownership. Agreement / Signature Date Printed Name COMMERICAL REAL ESTATE

13 Dallas Office: Dallas Pkwy, Ste 1275 Dallas, TX Office West Texas Office: th Street. Lubbock, TX Office Fax I N F O R M A T I O N O N B R O K E R A G E S E R V I C E S Before working with a real estate broker, you should know that the duties of a broker depend on whom the broker represents. If you are a prospective seller or landlord (owner) or a prospective buyer or tenant (buyer), you should know that the broker who lists the property for sale or lease is the owner s agent. A broker who acts as a subagent represents the owner in cooperation with the listing broker. A broker who acts as a buyer s agent represents the buyer. A broker may act as an intermediary between the parties if the parties consent in writing. A broker can assist you in locating a property, preparing a contract or lease, or obtaining financing without representing you. A broker is obligated by law to treat you honestly. IF THE BROKER REPRESENTS THE OWNER: The broker becomes the owner s agent by entering into an agreement with the owner, usually through a written listing agreement, or by agreeing to act as a subagent by accepting an offer of subagency from the listing broker. A subagent may work in a different real estate office. A listing broker or subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first. The buyer should not tell the owner s agent anything the buyer would not want the owner to know because an owner s agent must disclose to the owner any material information known to the agent IF THE BROKER REPRESENTS THE BUYER: The broker becomes the buyer s agent by entering into an agreement to represent the buyer, usually through a written buyer representation agreement. A buyer s agent can assist the owner but does not represent the owner and must place the interests of the buyer first. The owner should not tell a buyer s agent anything the owner would not want the buyer to know because a buyer s agent must disclose to the buyer any material information known to the agent. IF THE BROKER ACTS AS AN INTERMEDIARY: A broker may act as an intermediary between the parties if the broker complies with The Texas Real Estate License Act. The broker must obtain the written consent of each party to the transaction to act as an intermediary. The written consent must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker s obligations as an intermediary. The broker is required to treat each party honestly and fairly and to comply with The Texas Real Estate License Act. A broker who acts as an intermediary in a transaction: (1) shall treat all parties honestly (2) may not disclose that the owner will accept a price less than the asking price unless authorized in writing to do so by the owner (3) may not disclose that the buyer will pay a price greater than the price submitted in a written offer unless authorized in writing to do so by the buyer; and (4) may not disclose any confidential information or any information that a party specifically instructs the broker in writing not to disclose unless authorized in writing to disclose the information or required to do so by The Texas Real Estate License Act or a court order or if the information materially relates to the condition of the property. With the parties consent, a broker acting as an intermediary between the parties may appoint a person who is licensed under The Texas Real Estate License Act and associated with the broker to communicate with and carry out instructions of one party and another person who is licensed under that Act and associated with the broker to communicate with and carry out instructions of the other party. If you choose to have a broker represent you, you should enter into a written agreement with the broker that clearly establishes the broker s obligations and your obligations. The agreement should state how and by whom the broker will be paid. You have the right to choose the type of representation, if any, you wish to receive. Your payment of a fee to a broker does not necessarily establish that the broker represents you. If you have any questions regarding the duties and responsibilities of the broker, you should resolvethose questions before proceeding. Real estate licensee asks that you acknowledge receipt of this information about brokerage services for the licensee s records. Buyer, Seller, Landlord or Tenant Texas Real Estate Brokers and Salespersons are licensed and regulated by the Texas Real Estate Commission (TREC). If you have a question or complaint regarding a real estate licensee, you should contacct TREC at P.O. Box 12188, Austin, Texas or Date

NE Houston land for sale FM 1314 near Highway Acres

NE Houston land for sale FM 1314 near Highway 59 9.8642 Acres Clay Trozzo W 832-804-8524 C 713-705-8600 ctrozzo@propertycommerce.com FOR SALE - $6.00/sf N METRO Houston Located in the EMCID. Great Apartment