Value-Add. Contessa Townhomes INVESTMENT MULTIFAMILY OPPORTUNITY Contessa Drive, San Antonio, TX 78216

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1 Value-Add MULTIFAMILY INVESTMENT OPPORTUNITY g ble ancin a l i Ava w Fin e to N Contessa Townhomes 9526 Contessa Drive, San Antonio, TX 78216

2 Welcome Contessa Townhomes offer tenants a two-story townhome style way of life conveniently located close proximity to US-281 and IH-410 major San Antonio highways. Tenants enjoy quiet, comfortable living minutes from major retail and employment hubs. All units are townhome style with upstairs bedrooms and downstairs living quarters boasting new vinyl faux wood plank flooring. Tenants enjoy huge floor plans over 1,200 square feet for spacious living and abundant closet space. A new owner will enjoy a very well maintained asset strategically positioned for significant value-add appreciation potential in the Castle Hills submarket of San Antonio. Highlights Individually metered electricity RUBS in place for water/gas/trash All new roofs - Replaced last year New asphalt and striping entire parking lot Covered parking for every unit Additional Storage at covered parking Laundry Center on site W/D connections in 4 BR Floor Plan All New Boilers (2) Large Closets Quiet courtyards, mature landscaping No delinquency, No housing tenants Copper wiring Excellent Hwy Access (Int Hwy 410 and US-281)

3 San Antonio Economics Ranked Top 20 Performing Large Cities by Milken Institute Report Population: 1.5 million Area Median Income: $47,863 Area & Investment Highlights Balanced Economy: The public and private economic engines that fuel San Antonio, TX include military, health care, biotech, oil, and financial sector make this MSA less vulnerable to economic downturns and lends to consistent, organic growth. Abundant Nearby Retail: Contessa Townhomes are minutes from North Star Mall and Park North Plaza boasting all major retailers (Target, Best Buy, Macy s, Saks Fifth Avenue) with countless restaurants and entertainment including Cheesecake Factory and Alamo Drafthouse. Family and Schools: Excellent school district and Contessa sits adjacent to brand new campus for BASIS San Antonio Primary - North Central Campus charter school for grades K-5. Submarket evidences several assets with proven significant rent growth through value-add upgrades $1,500, Units Built in 1965

4 INCOME Trailing 6 Month Year One Feb 2018 Pro Forma PER UNIT GROSS POTENTIAL RENT $182,130 $198,000 $9,900 Less: Gain/(Loss to Lease) 0 (5,940) 3.00% GROSS SCHEDULED RENT $182,130 $192,060 $9,603 Physical Vacancy (36,982) (9,603) 5.00% Concessions/Bad Debt % TOTAL RENTAL INCOME $145,148 $182,457 $9,123 Laundry Income 1,610 1,750 $88 Utility Income (Water and Trash) 13,396 13,396 $56 Late Fees/App Fees/Pet Fees 4,463 4,500 $225 TOTAL OTHER INCOME $19,469 $19,646 $982 EFFECTIVE GROSS INCOME $164,617 $202,103 $8,421 EXPENSES ANNUALIZED Pro Forma PER UNIT Professional Management 7,086 7, % Payroll 9,360 9, Contract (Security/Pest/Landscape) 4,348 4, Repairs & Maintenance 17,709 7, General & Administrative 3,354 2, Advertising Expense 3,036 3, TOTAL CONTROLLABLE $44,893 $32,760 $1,638 Real Estate Taxes 30,037 30,037 1,502 Insurance 8,107 6, Utilities 25,606 25,606 1,280 TOTAL NON-CONTROLLABLE $63,750 $62,143 $3,107 Capital Reserves 0 5, TOTAL EXPENSES $108,643 $99,903 $4,995 NET OPERATING INCOME $55,974 $102,200 $5,110 NOTES: Pro Forma GPR based on current asking market rents by floor plan CapEx spend for Trailing 12 month not included in Actual NOI : $13,536 CapEx = A/C, Fridge, Toilet, and Floor Replacement, Exterior Plumbing, and Pavement Resurfacing Proven T12 RUBS system in place for water and trash = avg $60 per occupied unit per month Property Taxes pulled from BCAD 2017 appraisal ; mill rate 2.67% ($1,125,000 tax appraisal) SALES PRICE: $1,500,000 Contessa Townhomes Pro Forma RETURN ON INVESTMENT Annual Debt Service at 80% LTV 5 yr term / 30 yr 4.85% rate $75,987 Cash on cash Return: 8.74% Pro Forma Cap Rate: 6.81% Cap Rate on T 12: 3.73% This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as the the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for inaccuracies.

5 Contessa Townhomes Unit Mix Unit No. of Size Total Market Market Type Units Sq Ft Sq Ft Rent Rent/SF Occupancy One Bed / One Bath ,550 $700 $ % Two Bed / One Bath 15 1,200 18,000 $800 $ % Four Bed / Three Bath 2 1,400 2,800 $1,200 $ % TOTAL: 20 23,350 Average : 1,168 $825 $ % Submarket Rent Comparable Analysis March 2018 Year No. of Avg Market Market Property Built Units SF Rent Rent/SF Occupancy Contessa Townhomes ,168 $825 $ % Escondido Village $826 $ % North Star $668 $ % Oasis $848 $ % View Point $690 $ % Casa Luna $706 $ % Alamo $672 $ % Sahara Street ,072 $1,027 $ % Totals/Wtg. AVG $769 $ % Total Units Surveyed 809

6 San Antonio Local Employement Drivers: San Antonio Airport: Located minutes from the property, this is one of the largest employment drivers in the MSA with over 100,000+ related jobs and economic output circa $5 billion South Texas Medical Center: This northwest San Antonio campus consists of 900 acres of medical related facilities employing over 56,000 medical professionals, students, and staff USAA Headquarters: A Texas based Fortune 500 company, USAA is the largest private corporation in San Antonio employing over 17,000 with headquarter campus minutes from Contessa Townhomes.

7 Property Highlights: Value-add potential through continued interior upgrades Significant rent growth for very large floor plans Highly sought after north central location, Castle Hills Wood frame / attractive brick and siding exterior Excellent historic occupancy, currently 100% Parking: 35 surface spaces ; 22 covered spaces All new pavement and striping All new roofs

8 Agent Contacts: Reynold Toepfer (512) David Kanne (512) This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. ACR Multi-family 2015