2727 Brazos Lofts. Luxury Apartment Homes. Apartments for Sale. Mark Kalil & Associates Incorporated I

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1 2727 Brazos Lofts Luxury Apartment Homes Apartments for Sale Mark Kalil & Associates Incorporated I

2 2727 Brazos Lofts A P A R T M E N T H O M E S 2727 Brazos Lofts 2727 Brazos Street Houston, TX APARTMENTS FOR SALE Asking Price 2727 Brazos Street, Houston, Texas Market Units: 25 Avg Size: 614 Date Built: 2017 Rentable Sq. Ft.: 15,340 Acreage: 0.34 Occupancy 92% Class: A INVESTMENT HIGHLIGHTS High-end, Luxury Construction Excellent Freeway Access Minutes from Downtown and Memorial Park Well Located Just Minutes from the Prestigious Trendy Montrose Area, Upscale River Oaks, Midtown Houston Possible EB5 candidate Ideal to condo convert! FOR MORE INFORMATION PLEASE CONTACT: MARK KALIL Broker/Owner Mark Kalil & Associates Inc. mark@markkalil.com

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4 2727 Brazos Lofts 2727 Brazos Street Houston, TX Physical Information Financial Information Proposed Loan Information Operating Information Number of Units 25 Asking Price Market 1st 70% Est Mkt Rent (Sep-17) $34,825 Avg Unit Size 614 Price Per Unit Type: Agency Estimated Collections $32,039 Net Rentable Area 15,340 Price Per Sq. Ft. Debt Service Est Physical Occ (Oct-17) 92% Land Area (Acres) Units per Acre Stabilized NOI $235,925 Monthly P & I (IO) Interest Rate Est Ins per Unit per Yr Property Tax Information $350 Date Built Tax Rate/$ Water Meter Elec Meter RUBS Indiv 2017 Assessment Est 2017 Taxes $2,840,513 $75,179 Roof Style Flat Est FutureTax Assessment $2,479,311 HVAC System HVAC-Indiv Est Future Taxes $65,619 INCOME PRO-FORMA INCOME Current Street Rent with a 2% Increase 426,258 Estimated Gross Scheduled Income 426,258 Estimated Loss to Lease (2% of Total Street Rent) (8,525) 2% Estimated Vacancy (7% of Total Street Rent) (29,838) 7% Estimated Concessions and Other Rental Losses (2% of Total Street Rent) (17,050) 2% Estimated Utilities Income (electricity, water/sewer, & trash) Estimated Other Income 12,500 Estimated Total Rental Income ESTIMATED TOTAL PRO-FORMA INCOME MODIFIED ACTUALS PRO-FORMA * per unit -; per ft - $35,522 / Mo $35,522 / Mo 10,000 $400 / Unit / Yr $500 / Unit / Yr 393,344 $32,779 / Mo 393,344 Estimated Income 2017 $384,468 EXPENSE Estimated Expenses Estimated Future Expenses Fixed Expenses Fixed Expenses Estimated Fixed Expenses Taxes $43,716 $1,749 per Unit 2016 Tax Rate & 2017 Assessment $65,619 $2,625 per Unit 2016 Tax Rate & Future Assessment Insurance $8,750 $350 per Unit Estimated $8,750 $350 per Unit Estimated Total Fixed Expense 52,466 $2,099 per Unit 74,369 $2,975 per Unit Utilities Utilities Estimated Utilities Electricity $5,000 $200 per Unit $5,000 $200 per Unit Water & Sewer $12,500 $500 per Unit $12,500 $500 per Unit $1,250 $50 per Unit $1,250 $50 per Unit Trash Total Utilities 18,750 $750 per Unit 18,750 $750 per Unit Other Expenses Other Expenses Estimated Other Expenses General & Admin & Marketing Repairs & Maintenance Labor Costs Contract Services $6,250 $7,500 $27,500 $3,750 $250 per Unit $300 per Unit $1,100 per Unit $150 per Unit $6,250 $7,500 $27,500 $3,750 $250 per Unit $300 per Unit $1,100 per Unit $150 per Unit Management Fees $9, % $384 per Unit $11, % $472 per Unit Total Other Expense 54,612 $2,184 per Unit 56,800 $2,272 per Unit Total Operating Expense 125,827 $5,033 per Unit 149,919 $5,997 per Unit Reserve for Replacement 7,500 $300 per Unit 7,500 $300 per Unit Total Expense 133,327 $5,333 per Unit 157,419 $6,297 per Unit Stabilized Net Operating Income 251, ,925 Asking Price Cap Rate Proposed Debt Equity Estimated Debt Service Cash Flow Cash on Cash NOTES: ACTUALS: Income and Expenses calculated were Estimated. Taxes were calculated using 2016 Tax Rate & 2017 Assessment. PRO FORMA: Income is Pro Forma as Noted. Taxes were calculated using 2016 Tax Rate & Future Assessment. Insurance is estimated. Management Fees calculated as 3.% of Gross Income, Other expenses are Estimated for the Pro Forma. Market Market 251, ,925 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. 10/20/ Brazos

5 2727 Brazos Lofts 2727 Brazos Street Houston, TX Property Overview PROPERTY INFORMATION Age: 2017 Mortgage Balance Houston ISD $ Renovated: N/A Lender Harris County $ Elec Meter: Indiv Amortization Harris County Flood Control $ A/C Type: HVAC P & I Port of Houston Authority $ Water: RUBS Type Harris County Hospital District $ Wiring: Copper Assumable Harris County Education Dept $ Roof: Flat Monthly Escrow Houston Community College $ Paving: Concrete Origination Date City of Houston $ Materials: Masonry Due Date Midtown Mgmt District $ # of Stories: 3 Interest Rate Buildings: 1 Yield Maintenance 2016 Tax Rate/$100 $ Parking: Garage Transfer Fee 1%+app+legal 2017 Assessment $2,840,513 Units/Acre: Estimated Collections $ 32,039 ESTIMATED COLLECTIONS CURRENT MORTGAGE TAXING AUTHORITY Harris County: Jan 2017 Feb 2017 Mar 2017 Apr 2017 May 2017 Jun 2017 Jul 2017 Aug 2017 Sep 2017 Oct 2017 Nov 2017 Dec 2017 $1 $1 $1 $1 $0 $0 $- Jan 2017 Feb 2017 Mar 2017 Apr 2017 May 2017 Jun 2017 Jul 2017 Aug 2017 Sep 2017 Oct 2017 Nov 2017 Dec 2017 PLEASE DO NOT VISIT THE SITE WITHOUT AN APPOINTMENT MADE THROUGH THE BROKER. PROPERTY HIGHLIGHTS 2727 Brazos Lofts is located near the trendy Montrose area, upscale River Oaks, and Midtown Houston. The property is only minutes away from extraordinary shopping and award winning restaurants such as Uchi, Underbelly, and Anvil to name a few. There is also easy access to universities, museums parks, and hospitals Brazos Lofts offers luxurious, contemporary, exclusive floor plans The asset has chic and contemporary studios and one bedroom apartment homes that feature air conditioning, energy efficient appliances, large closets, and washer and dryers. Amenities include a gated community with controlled access and covered parking, designer cabinetry, energy-efficient appliances, granite countertops, washer/dryer connections, wood-type flooring and beautiful views of downtown Houston. The property is ideal for EB5 investors, for a second home in the City, or for possible condo conversion. Per owner the assest was completed in 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, Mark Kalil & Associates 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.

6 2727 Brazos Lofts 2727 Brazos Street Houston, TX Unit Mix UNIT MIX SEPTEMBER 2017 Floor Plan Type No. Units Sq Ft Total SqFt Market Rent Total Rent Rent/SF Flat Studio ,900 $1,275 $6,375 $2.20 Flat Studio ,960 $1,350 $16,200 $2.33 Flat 1 Bed/1 Bath ,370 $1,350 $2,700 $1.97 Flat 1 Bed/1 Bath ,370 $1,475 $2,950 $2.15 Flat 1 Bed/1 Bath ,740 $1,650 $6,600 $2.41 TOTALS AND AVERAGES ,340 $1,393 $34,825 $2.27 Total Units Average Sq. Ft. Total Sq. Feet Average Rent/Unit Total Rent Average Rent/ SF SITE AMENITIES Balcony View of Downtown Houston Covered Parking *Source: Owner's 9/11/17 Rent Roll Unit Type Gated with Controlled Access Midtown Location 5 Pet Friendly APARTMENT AMENITIES Cable Ready Ceiling Fans Designer Cabinetry Studio 17 1 Bed/1 Bath Dishwasher Electronic Thermostat Energy-Efficient Appliances Garbage Disposal Granite Countertops Microwave Large Walk-in Closets Patio or Balcony Window Coverings Wood Type Flooring 2 2 Chart Title Studio Studio 1 Bed/1 Bath 1 Bed/1 Bath 1 Bed/1 Bath

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8 2727 Brazos Lofts 2727 Brazos Street Houston, TX Aerial

9 2727 Brazos Lofts 2727 Brazos Street Houston, TX 77006

10 2727 Brazos Lofts 2727 Brazos Street Houston, TX Rent Comparables Mid Main Lofts 3500 Main St. Pearl at the Mix 2910 Milam St. Pearl Midtown 3101 Smith St. Elan Heights 825 Usener St. Property Name Hanover Montrose 3400 Montrose Blvd Rent Comparables (ADS Sept 2017) Year Year Built Occ #Units Renovated 2016 Avg Rent Totals/Averages Comps 2016 N/A 77% $1,856 $2.24 *Resident Pays E(Electric), W(Water), G(Gas) 2727 Brazos Lofts 2727 Brazos Street 2017 N/A 92% $1,393 $2.27 Sub Market Averages 87% 12, $1,685 $1.820 Houston Market Averages 88% 636, $999 $ EWG N/A 43% $1,156 +EW N/A Avg SF 94% $1, N/A 96% $1, N/A 82% $2,058 +EWG +EWG 2016 N/A 72% $2,371 +EW EW P/SF Brazos

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12 2727 Brazos Lofts 2727 Brazos Street Houston, TX Sales Comparables Property Name Date Sold Price Total Sq. Ft. Price/Unit Price/SF Built Units 1 Holden Heights 525 W 24th St. 08/01/16 $45,001, ,783 $159,578 $ Bayou on the Bend 5201 Memorial 05/10/17 $46,000, ,275 $190,083 $ The Connection at Buffalo Pointe Buffalo Speedway 12/01/16 $52,300, ,058 $148,580 $ Yale at 6th 655 Yale Street 09/08/16 $76,384, ,439 $217,000 $ The Muse at the Museum District 1301 Richmond 06/01/17 $60,000, ,221 $222,222 $ Totals/Averages Comps $55,937, ,555 $187,492 $ Brazos Lofts 2727 Brazos Street Market 15, Brazos 3

13 2727 Brazos Lofts 2727 Brazos Street Houston, TX Area Economics A DECADE ago the concept of living in or near downtown Houston was exactly that to many observers, a concept, rather than a viable option. Developers have spent more than $4 billion in the last decade to transform downtown into a vital city center, bringing a vast gamut of assets and amenities to downtown and more and more people are choosing to live in downtown Houston or in the immediate downtown area. The types of residents attracted to downtown living are young urban professionals working downtown, empty nesters, reverse commuters and, yes, even small families, from penthouse apartments to cool and funky lofts and at all price points. Downtown Houston is booming thanks to an unprecedented amount of public and private investment-- developers have spent more than $4 billion in the last decade to transform downtown into a vital city center. Downtown Houston is home to dramatic 20th Century skyscrapers housing the offices where many of downtown s 140,000 workers are employed, a world-class Theater District, a growing residential population, a popular nightlife scene centered in the Historic District, new light rail, an enhanced convention center and numerous new hotels as well as two stateof-the-art sports facilities that attract millions throughout the year. The Downtown District is bounded largely by the freeway ring around Houston s central business core, including Interstate 10, Highway 59 and Interstate 45. The Houston Downtown Management District has facilitated many of the public and private projects that have transformed downtown over the last decade. The District began its revitalization efforts in To accelerate the renewal of the city's urban core, the District set several important goals with quality of life as the underlying theme: building a lasting constituency for downtown; recruiting investors, retailers and tenants while retaining those already downtown; and making downtown clean, safe and attractive. DOWNTOWN HOUSTON QUICK FACTS Since 1996, $4 billion of construction has been completed in over 110 public and private projects Over 3,800 residents now live downtown, up from only 1,400 in the 1990's Almost 150 restaurants and clubs have opened since 1997 with a broad range of offerings 3.2 million square feet of new Class A office space has been constructed, bringing downtown to a total of over 41 million square feet 3,000 hotel rooms in 11 projects have been added bringing total rooms to 4,858 in 15 properties $500 million of infrastructure improvements by the City of Houston, METRO, TxDOT and the Downtown District including the reconstruction of 23 downtown streets 8,486 garage and lot parking spaces were added to an inventory of over 100,000

14 HOUSTON, TEXAS A T A G L A N C E The City of Houston, the largest city in Texas and the fourth largest city in the United States, is located on the coastal prairies of southeast Texas and is home to a diverse array of industries and cultures. Houston is located in Harris County, the nation s third most populous county. The Houston region, officially designated as the Houston - Woodlands - Sugar Land Metropolitan Statistical Area (MSA), comprises Harris County and eight other counties: Austin, Brazoria, Chambers, Fort Bend, Galveston, Liberty, Montgomery, and Waller. The Houston MSA has a population of approximately 6,656,947 according to new U.S. Census Bureau estimates. The nine county metropolitan area is the fifth-largest metropolitan area in the nation and covers 9,444 square miles. The most urbanized portions of the Houston area are in Harris County, the southern part of Montgomery County, and the eastern section of Fort Bend County. Houston is home to the tenth largest port in the world and is in close proximity to Mexico, a key trading partner. It has a temperate climate and an affordable cost of living. With a population exceeding 2.3 million, the population base includes a wide variety of racial and ethnic groups that give Houston a rich diversity and cosmopolitan feel. The U.S. Bureau of Economic analysis estimates metro Houston's Gross Domestic Product (GDP) at around $503.3 billion. If the MSA were an independent nation, its economy would rank 23rd largest in the world, behind Taiwan ($523.6 billion), but ahead of Sweden ($499.4 billion). Source: Greater Houston Partnership Research, December 2016

15 Ever since its founding as a port city, Houston has been a dynamic international marketplace, attracting capital and people from all over the world. Today, Houston is the nation's fourth largest economy, and what Forbes calls "America's next great global city." Houston s annual trade growth is among the highest in the nation with a total annual trade value growth of 84.6 percent, from $ million in 2005 to $ million in 2015; exceeding the nation s growth rate of 45.2 percent during that same period. Houston is already a leading exporter, and our exports have increased 189% since In fact, Houston is the #1 metro exporter in the top energy related industries. But recent low oil prices have slowed our rate of growth. A plan to boost goods exports can further diversify our economy, help existing companies grow, and create more jobs. Houston's export plan will connect small and medium-sized enterprises to growing markets, while positioning the region as a location of choice for global investors. Source: Greater Houston Partnership Research, December 2016

16 Despite Setbacks Houston Still has a Strong Economy From 2010 to 2014, Houston added nearly half a million jobs. This period of phenomenal growth provided the momentum needed to sustain the region through the early stages of the energy downturn that began at the end of '14. As oil prices and rig counts fell through '15 and early '16, Houston's job growth began to slow. In '15, the region added 15,200 jobs, and added 13,400 jobs in the 12-months ending Oct '16. In spite of the energy industry's worst downturn in history, Houston managed to post 12-month net job gains throughout this period. No Single Industry or Sector Dominates Houston Employment A strong U.S. economy, momentum from the previous economic boom, robust population growth, and the $50 billion in petrochemical plant expansions have helped offset losses in upstream energy and manufacturing. Houston's Service-Providing Sector Continued to Add Jobs During the Energy Downturn The goods-producing industries (mining and logging, construction, and manufacturing) peaked at 586,300 jobs in December '14, then fell to 536,400 jobs in October '16. Mining and logging, primarily oil and gas extraction and support activities, lost 25,600 jobs, a 22.9 percent decrease. These losses rippled through the economy, triggering declines in other sectors, particularly durable goods manufacturing, wholesale trade and professional and business services. Source: Texas Workforce Commission Aug '16 Construction, helped by the petrochemical plant expansions on the eastside of Houston, gained 6,100 jobs over the same period. Manufacturing lost 30,400 jobs and fabricated metal products lost 12,100 jobs. Construction and mining machinery lost 14,200 jobs, and computer and electronics lost 2,300 jobs. The service-providing industries added 66,600 jobs between December '14 and October '16. Gains in industries that rely on population growth offset losses in sectors tied to energy. Trade, transportation, and utilities lost 1,400 jobs, financial activities added 3,000 jobs, and professional, scientific and technical services cut 7,700 jobs. Healthcare and social assistance added 24,500 jobs, accommodation and food services added 27,600, and government gained 14,700 jobs. The service industries account for 4 out of 5 workers in the region The goods-producing sector accounts for nearly 1 in 5 of the region's jobs Source: Greater Houston Partnership Research, December 2016

17 E c o n o m i c F o r e c a s t Renowned Real Estate Economist States: ' The Downturn Seems to be Over' According to an article by Jim Gaines, a research economist at the Real Estate Center at Texas A&M University, dated January 6, 2017, in the Houston Business Journal, the economic downturn that began in November 2014 seems to be over. Jim Gaines states there's generally a two-to three-year lag between the time the energy sector goes into a slump and all of its impacts on the economy are felt. Houston's energy slump unofficially began on November 27, 2014, when OPEC announced it wouldn't adjust oil production levels. Gaines said that Houston should see some of the slump's final lag effects this year. Gaines also noted that 2016 is poised to be the best year on-record for Houston home sales. The Greater Houston Partnership recorded that November 2016's home sales were the best November on-record for single-family home sales. Much of that boom can be attributed to Houston's population growth. Despite the oil slump, few residents are leaving Houston. In 2016, Houston welcomed 132,000 new residents (45,600 households). Gaines also states that Houston's population is expected to rise to 7.4 million by 2020 and should double to 14 million by Additionally, according to an article dated January 11, 2017, by G. Scott Thomas of Buffalo Business First, a sister paper to the Houston Business Journal, Houston is on the brink of a population milestone. Buffalo Business First has developed a computer formula that uses 15 years of demographic data to estimate the population of any community at any given moment, and according to predictions by Business First Houston will reach 6.9 million on March 13, 2017 and 7.0 million on November 17, Source: 1/6/16, Cara Smith What are other signals the downturn is over? As stated by the Greater Houston Partnership's '2017 Houston Employment Forecast': West Texas Intermediate (WTI) the U.S. benchmark for light, sweet crude, now trades near $50/barrel. WTI traded as low as $26 in mid-february The number of drilling rigs working in the U.S. reached 593 in mid-november. Only 404 rigs, the fewest in recent history, were in the field in mid-may. After 21 months below 50, the Houston Purchasing Managers Index hit 51.1 in October Readings above 50 signal pending expansion; below 50, contraction. The region created 13,400 jobs in the 12 months ending October '16. Annualized growth had sunk as low as 3,200 jobs in May '16. The forecast also asserts, "the recent downturn could be compared to a tropical storm. The damage done depended on where one stood as the system passed over Houston. Those businesses closest to the energy industry felt the full fury of the storm. Those distant from oil and gas, to extend the metaphor a bit further - on the dry side of the storm - were buffeted but not blown away." The forecast calls for the strongest job growth in manufacturing, wholesale trade, retail trade, finance and insurance, real estate, business, professional and technical services, other services and government. Source: Greater Houston Partnership Research, December 2016

18 MULTI-FAMILY... Moving Forward Cautiously Since December '14, developers have added more than 37,000 units to local inventory. Another 15,000 are under construction, the majority scheduled to open in the next 12 months. That equates to 52,000 units delivered in a market that's just beginning to recover. Over the past 12 months, the region has absorbed about 6,500 units. The glut cut overall occupancy to 88.9% in November '16, down from 91.5% at its June '15 peak. Occupancy rates below 90% favor tenants. Rents have responded accordingly, dropping between 2% and 6% depending on the apartment class. The market absorbed 14,000 Class A units through the first 10 months of '16, but this performance came at the expense of Class B, C and D properties, which collectively lost 7,500 tenants over the same period. Traditional Class B and C tenants have been enticed into the Class A market with deposit waivers, free rent (as much as 3 months) and other enticements. Whether these tenants renew their leases remains to be seen, but is however, doubtful. If one uses the industry rule of thumb that for every six jobs created, the market absorbs one unit, then Houston needs to add 156,000 jobs to cut the current surplus in half. Once the economy recovers, growth should return to the long-term trend - 50,000 to 60,000 per year. Source: Greater Houston Partnership Research, December 2016 Ignoring Class B and C Apartment Market is a 'Big Mistake' Despite the fact that during the economic downturn some Class B and C tenants were lured into the Class A market with large free rent waivers and other concessions, with the improving conditions a large portion of them most likely will not renew and will return to the Class B and C market. In an article in the Houston Business Journal, dated September, 28, 2016, by Paul Takahashi, Todd Marix of Holliday, Fenoglio, Fowler (HFF) observed that ignoring the Class B and C apartment market is a 'big mistake'. As stated by the article, when Todd Marix brought Broadstone Grand Parkway to market he expected he might receive bids from six or seven interested buyers - par for the oil downturn. The 342-unit garden apartment complex, built in 2009, had solid occupancy in the high 90th percentile but was offering two months free rent amid increasing competition from nearby apartments in Katy. However, Marix's multifamily investment team at HFF received a whopping 18 bids for the property. The deal is still under contract but Marix said it sparked a bidding war between local and out-of-town private equity firms. "We were shocked by the level of participation," Marix said. "We haven't seen this kind of bidding behavior in a long time. It tells me there's some optimism in the market." Despite the oil slump, many opportunistic apartment buyers are returning to Houston in search of good deals, according to Marix. Young apartment investors are also looking to get into the market during the oil slump, Marix said. These buyers are willing to accept lower rents for one or two years and hope that Houston's apartment market will recover around "Buyers like Advenir are relatively new to Houston, but they like the recovery aspect," Marix said. "These buyers have patient capital and want to buy in Houston at an advantageous time. They know things will be bumpy for the next year or two but are hoping they will come out the other end with a great deal." Most of these new Houston buyers are focusing on the city's Class B and C apartment market during the energy downturn, Marix said. Marix estimates there are about 620,000 apartment units in Houston, of which the majority - two-thirds - are Class B and C apartments. Source: 9/28/16, Paul Takahashi

19 2727 Brazos Lofts 2727 Brazos Street Houston, TX Flood Plain Map 2727 Brazos Lofts

20 2727 Brazos Lofts 2727 Brazos Street Houston, TX Demographics SUMMARY PROFILE 1 Mile Radius 2 Mile Radius 3 Mile Radius Census, 2017 Estimates with 2022 Projections Calculated using Weighted Block Centroid from Block Groups 2727 Brazos Lofts 2727 Brazos Street Houston, TX Ethnicity - 1 Mile Radius 2017 Estimated Population 26, , , Projected Population 28, , , Census Population 21,505 85, ,823 POPULATION 2000 Census Population 16,256 73, ,216 Projected Annual Growth 2017 to % 2.0% 2.2% Historical Annual Growth 2000 to % 2.4% 1.9% 2017 Median Age % 5% 24% 47% White Black Asian Other Hispanic EDUCATION BUSINESS INCOME RACE AND ETHNICITY HOUSEHOLDS (AGE 25+) 2017 Estimated Households 15,939 51,332 90, Projected Households 17,531 57, , Census Households 12,294 40,388 72, Census Households 8,203 31,372 58,866 Projected Annual Growth 2017 to % 2.3% 2.3% Historical Annual Growth 2000 to % 3.7% 3.1% 2017 Estimated White 61.9% 57.7% 57.6% 2017 Estimated Black or African American 21.7% 26.2% 24.5% 2017 Estimated Asian or Pacific Islander 6.7% 5.7% 6.1% 2017 Estimated American Indian or Native Alaskan 0.5% 0.4% 0.5% 2017 Estimated Other Races 9.2% 9.9% 11.3% 2017 Estimated Hispanic 23.9% 24.2% 28.3% 2017 Estimated Average Household Income $110,125 $116,159 $122, Estimated Median Household Income $83,019 $87,541 $90, Estimated Per Capita Income $67,152 $59,670 $58, Estimated Elementary (Grade Level 0 to 8) 2.4% 4.8% 6.3% 2017 Estimated Some High School (Grade Level 9 to 11) 4.3% 6.8% 6.3% 2017 Estimated High School Graduate 10.0% 14.2% 13.4% 2017 Estimated Some College 17.6% 16.0% 15.6% 2017 Estimated Associates Degree Only 4.4% 3.9% 4.1% 2017 Estimated Bachelors Degree Only 35.0% 28.2% 28.2% 2017 Estimated Graduate Degree 26.2% 26.1% 26.1% 2017 Estimated Total Businesses 3,361 11,102 19, Estimated Total Employees 64, , , Estimated Employee Population per Business Estimated Residential Population per Business % 24% Non-Hispanic Hispanic 76% Average Income Subject - 1 Mile Radius $120,000 $110,125 $100,000 $80,000 $72,073 $60,000 $40,000 $20,000 $0 Subject Houston

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22 Brazos Brazos Lofts Lofts 2727 Brazos A P A R T M E N T H O M E S D I S C L A I M E R & N O N-E N D O R S E M E N T N O T I C E 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 (Mark Kalil & Associates, Inc. or 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. Non-Endorsement Notice: Mark Kalil & Associates, Inc. is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by Mark Kalil & Associates, Inc. or any of the owners or officers, directors, employees, agents or representatives of any such entities, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers. ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY FOR INFORMATION PLEASE CONTACT: MARK KALIL Broker/Owner Mark Kalil & Associates Inc. mark@markkalil.com MARK KALIL & ASSOCIATES INC Holcombe Blvd. I Suite 105 I Houston, Tx Broker License #