BROKER'S OPINION OF VALUE

BROKER'S OPINION OF VALUE A 80 Unit Class C Multi-Family Asset 67 BREES BLVD, SAN ANTONIO, TX 78209 4295 San Felipe Suite 355 Houston, TX 77027 www.ketent.com

APARTMENTS FOR SALE Market PRICE/UNIT: PRICE/SF: Units: 98 TERMS: ALL CASH Avg Size: 1107 PRO-FORMA CAP RATE: Date Built: 1972 Rentable Sq. Ft.: 108,526 Acreage: 4.85 Occupancy: 92% Class: B- SALIENT FACTS: Asking Price Market Available on an All Cash or New Loan Basis Great land location Close proximity to The University of Incarnate Word Strong rental area Located in the Alamo Heights submarket of San Antonio, TX For More Information Please Contact: Tom Wilkinson twilk4@ketent.com 713-355-4646 ext 102 Potential condo conversion Located in Alamo Heights District, best in San Antonio Jim Hurd, Broker 713-783-6262 jhurd@houstonincomeproperties.com

Physical Information Number of Units Avg Unit Size Asking Price Market New Loan @ 75% of Asking Est Mkt Rent (Dec-18) Price Per Unit Amortization (months) 360 3 Mo Avg Net Rentable Area 108,526 Price Per Sq. Ft. Debt Service Land Area (Acres) Units per Acre Date Built 4.85 20.211 1972 Stabilized NOI $793,642 Monthly P & I Interest Rate Date Due Water Meter / Master Elec Meter RUBS Indiv/Master Metered Est Res for Repl/Unit/Yr Yield Maintenance Roof Style Pitched A/C Type: HVAC-Indiv INCOME PRO-FORMA INCOME Current Street Rent with a 6% Increase 1,405,599 Estimated Gross Scheduled Income 1,405,599 Estimated Loss to Lease (1% of Total Street Rent) (14,056) 1% Estimated Vacancy (4% of Total Street Rent) (56,224) 4% Estimated Concessions and Other Rental Losses (2% of Total Street Rent) (28,112) 2% Estimated Utilities Income Estimated Other Income 54,343 Estimated Total Rental Income 1,443,326 ESTIMATED TOTAL PRO-FORMA INCOME 1,443,326 Trailing 3 Mo 2018 Income EXPENSE Fixed Expenses Property Taxes Franchise Taxes $2,508 $26 per Unit Insurance $11,181 Total Fixed Expense $117,133 / Mo $117,133 / Mo 81,777 $834 / Unit / Yr $555 / Unit / Yr $120,277 / Mo 2018 Tax Rate & Future Assessment 12/18 operating statement $11,181 $114 per Unit Estimated 213,239 $2,176 per Unit 263,404 $2,688 per Unit Utilities Utilities Estimated Utilities Electricity $70,547 $720 per Unit $70,547 $720 per Unit Water & Sewer $49,120 $501 per Unit $49,120 $501 per Unit Telephone & Internet $4,366 $45 per Unit $4,366 $45 per Unit Trash $8,454 $86 per Unit $8,454 $86 per Unit Total Utilities 132,487 $1,352 per Unit 132,487 $1,352 per Unit Other Expenses Other Expenses Estimated Other Expenses General & Admin & Marketing Repairs & Maintenance Labor Costs Contract Services $26,979 $74,648 $105,114 $0 $275 per Unit $762 per Unit $1,073 per Unit $ per Unit $26,979 $49,000 $105,114 $0 $275 per Unit $500 per Unit $1,073 per Unit $ per Unit Management Fees $46,648 3.50% $476 per Unit $43,300 3.00% $442 per Unit Total Other Expense 253,389 $2,586 per Unit 224,393 $2,290 per Unit Total Operating Expense 599,115 $6,113 per Unit 620,284 $6,329 per Unit Reserve for Replacement 29,400 $300 per Unit 29,400 $300 per Unit Total Expense 628,515 $6,413 per Unit 649,684 $6,629 per Unit Net Operating Income (Actual Underwriting) 704,278 793,642 Asking Price Cap Rate Proposed Debt Equity Estimated Debt Service Cash Flow Cash on Cash 98 1107 Financial Information MODIFIED ACTUALS Fixed Expenses $1,332,793 December 2018 YTD Expenses $199,550 $2,036 per Unit 2018 Tax Billing $114 per Unit Proposed Loan Parameters PRO-FORMA Estimated Expenses Estimated Fixed Expenses Physical Occ (Dec-18) 92% Est Ins per Unit per Yr $114 Property Tax Information Tax Rate (2018) 2.55833 2018 Tax Assessment $7,800,000 2018 Taxes $199,550 Est Future Tax Assessment $9,760,868 Est Future Taxes $249,715 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. Market Operating Information NOTES: ACTUALS: Income and Expenses are from owner's 12/18 operating statement. PRO FORMA: Income is Pro Forma as Noted. Taxes were calculated using 2018 Tax Rate & Future Assessment. Insurance is estimated. Management Fees calculated as 3.% of Gross Income, Other expenses are Estimated for the Pro Forma. 704,278 $249,715 4.5% 10 Yrs $300 Yes $2,548 per Unit $2,508 $26 per Unit 3/5/2019 AshfordTanglewood Market 793,642 $110,503 $111,066

PROPERTY OVERVIEW Keymap: 583D6 Construction Quality: B- PROPERTY INFORMATION AMENITIES EXISTING MORTGAGE TAXING AUTHORITY - BEXAR COUNTY Age: 1972 Access Gates Park & Ride Nearby Mortgage Balance ACCT NO: 511318 Elec Meter: Indiv/Master Metered Cable Ready Walk-In Closets Amortization Bexas CO RD & Flood $0.023668 A/C Type: HVAC-Indiv Club House School Bus Pick-up P & I SA River Authority $0.018580 Water: RUBS Laundry Rooms Shuttle Route Type Alamo Community College $0.149150 Wiring: Copper Mini Blinds Patios/Balconies Assumable University Health System $0.276235 Roof: Pitched Pool Monthly Escrow Bexar County $0.277429 Paving: Asphalt Bookshelves Origination Date City of San Antonio $0.558270 Materials: Brick/Wood Outside Storage Due Date Alamo Height ISD $1.255000 # of Stories: 2 Ceiling Fans Interest Rate Parking: Covered Buildings: 19 Yield Maintenance 2018 Tax Rate/$100 $2.558332 Units/Acre: 20.21 Transfer Fee 2018 Tax Assessment $7,800,000 *In Select Units COLLECTIONS Total $ 1,225,411 Jan 2018 $ 96,944 12 Mo Avg $ 102,118 Feb 2018 $ 89,749 Mar 2018 $ 89,965 Apr 2018 $ 94,919 9 Mo Avg $ 105,417 May 2018 $ 102,498 June 2018 $ 101,016 July 2018 $ 102,020 6 Mo Avg $ 108,387 Aug 2018 $ 105,867 Sept 2018 $ 109,233 Oct 2018 $ 112,607 3 Mo Avg $ 111,066 Nov 2018 $ 109,239 Dec 2018 $ 111,352 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $- PLEASE DO NOT VISIT THE SITE WITHOUT AN APPOINTMENT MADE THROUGH THE BROKER. PROPERTY HIGHLIGHTS The Ashford Tanglewood Apartments, is a two story, garden-style, apartment community located in the Alamo Heights submarket of San Antonio, Texas. The asset was built in 1972 and per owner, was renovated in 2017. Residents enjoy ample amenities which include: 2" wood blinds, kitchen pantries, upgraded ceiling fans and fixtures, laundry facilities, patios and balconies and walk-in closets. There are stainless steel appliances and/or granite counter tops in some units The property is located in a Class A location. The units are 1,107 sq.ft., much larger than normal. The property is ideal for long term hold and is a candidate for possible condo conversion. The Broker feels that additional upgrades could produce additional revenue. Per owner, the property is half master metered and half individually metered, half boilers and half individual water heaters. It is all HVAC with no window units. There is copper wiring, confirmed per owner and all out door lights are LED. The leasing office has been completely remodeled and expanded and a new AC unit was installed. There are washer/dryer connections in 50% of the units. Offering washer/dryers in the units could generate additional revenue. Alamo Heights is one of the best school districts in San Antonio. 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.

Unit Mix UNIT MIX Type No. Units Sq Ft Total SqFt Market Rent Total Rent Rent/SF 1 Bed/1 Bath 6 663 3,978 $805 $4,828 $1.21 1 Bed/1 Bath 2 663 1,326 $967 $1,933 $1.46 1 Bed/1 Bath 7 777 5,439 $835 $5,842 $1.07 1 Bed/1 Bath 1 777 777 $1,009 $1,009 $1.30 1 Bed/1 Bath 6 804 4,824 $905 $5,427 $1.13 1 Bed/1 Bath 2 804 1,608 $1,037 $2,074 $1.29 2 Bed/1 Bath 6 998 5,988 $1,011 $6,067 $1.01 2 Bed/1 Bath 2 998 1,996 $1,305 $2,609 $1.31 2 Bed/1 Bath 10 1,044 10,440 $1,038 $10,379 $0.99 2 Bed/1 Bath 3 1,044 3,132 $1,041 $3,123 $1.00 2 Bed/2 Bath 14 1,114 15,596 $1,096 $15,345 $0.98 2 Bed/2 Bath 6 1,114 6,684 $1,352 $8,109 $1.21 2 Bed/2 Bath 11 1,285 14,135 $1,136 $12,496 $0.88 2 Bed/2 Bath 1 1,285 1,285 $1,409 $1,409 $1.10 3 Bed/2 Bath 2 1,449 2,898 $1,315 $2,630 $0.91 3 Bed/2 Bath 2 1,449 2,898 $1,615 $3,230 $1.11 3 Bed/2 Bath 6 1,452 8,712 $1,363 $8,176 $0.94 3 Bed/2 Bath 2 1,452 2,904 $1,675 $3,350 $1.15 3 Bed/2 Bath 7 1,676 11,732 $1,404 $9,827 $0.84 3 Bed/2 Bath 1 1,676 1,676 $1,765 $1,765 $1.05 Efficiency 1 498 498 $875 $875 $1.76 98 1107 108,526 $1,128 $110,503 $1.02 TOTALS AND AVERAGES Total Units Average Sq. Ft. Total Sq. Feet Average Rent/Unit Total Rent Average Rent/ SF UNITS BY TYPE AMENITIES 2/19 RR 1% Upgraded Ceiling Fans & Fixtures High-Speed Internet Dishwasher Reserved Parking 20% 25% Patios/Balconies Walk-In Closets 24hr Emergency Maintenance Carports 2 Inch Wood Blinds Park & Ride Nearby Disposals Laundry Rooms 33% 21% Stainless Steel Appliances* Granite Countertops* Swimming Pools Bookshelves Washer/Dryer Connections* Outside Storage 1 Bed/1 Bath 2 Bed/1 Bath 2 Bed/2 Bath 9ft Ceilings 3 Bed/2 Bath Efficiency *In select units

PROPERTY LOCATION

RENT COMPARABLES (2019) Sorted by Avg Rent/Unit Property Name Yr Blt Occ Rehabbed #Units Avg SF Avg Rent P/SF 1 Sunset Ridge 116 Vanderheck 1949 88% 2004 324 861 $1,085 1.260 2 The Beverly 123 Brackenridge Ave 3 Keystone at Alamo Heights 384 Treeline Park 1968 96% 1997 137 856 $1,121 1994 82% N/A 224 943 $1,198 1.310 1.270 4 Chelsea 151 Treasure Way 1969 85% N/A 89 1323 $1,058 0.800 5 The Crescent 340 Treeline Park 1993 87% N/A 306 990 $1,297 1.310 Totals/Averages Comps 1975 88% 216 995 $1,184 $1.190 Ashford Tanglewood 67 Brees Blvd 1972 92% 2017 98 1,107 $1,128 $1.018 Sub-Market Averages(Alamo Heights) 88% 4,543 921 $1,082 $1.191 San Antonio Market Avgs 90% 153,935 830 $856 $1.057 4 3 5 1 2

DEMOGRAPHICS 1 Mile 3 Mile Radius 5 Mile Radius POPULATION 2018 Estimated Population 14,460 49,746 102,665 2023 Projected Population 15,656 53,635 110,431 2010 Census Population 12,422 42,924 90,557 2000 Census Population 12,750 43,292 90,321 Projected Annual Growth 2018 to 2023 1.7% 1.6% 1.5% Historical Annual Growth 2000 to 2018 0.7% 0.8% 0.8% 2% 2% 5% 27% 64% 2018 Median Age 39.1 39.9 36.8 White Black Asian Other Hispanic EDUCATION BUSINESS INCOME RACE AND ETHNICITY HOUSEHOLDS (AGE 25+) 2018 Estimated Households 6,299 21,038 40,296 2023 Projected Households 6,581 22,003 42,219 2010 Census Households 5,678 18,907 36,909 2000 Census Households 5,868 19,102 37,825 Projected Annual Growth 2018 to 2023 0.9% 0.9% 1.0% Historical Annual Growth 2000 to 2018 0.4% 0.6% 0.4% 2018 Estimated White 86.6% 81.2% 75.2% 2018 Estimated Black or African American 3.4% 5.6% 7.8% 2018 Estimated Asian or Pacific Islander 2.8% 3.1% 3.1% 2018 Estimated American Indian or Native Alaskan 0.4% 0.6% 0.7% 2018 Estimated Other Races 6.7% 9.5% 13.2% 2018 Estimated Hispanic 28.0% 34.7% 43.4% 2018 Estimated Average Household Income $145,271 $134,671 $105,636 2018 Estimated Median Household Income $101,908 $90,977 $73,482 2018 Estimated Per Capita Income $63,307 $57,282 $42,369 2018 Estimated Elementary (Grade Level 0 to 8) 1.0% 2.4% 4.0% 2018 Estimated Some High School (Grade Level 9 to 11) 2.4% 3.7% 5.9% 2018 Estimated High School Graduate 9.4% 13.5% 18.7% 2018 Estimated Some College 15.2% 19.2% 20.9% 2018 Estimated Associates Degree Only 5.2% 5.5% 6.5% 2018 Estimated Bachelors Degree Only 35.7% 30.7% 25.2% 2018 Estimated Graduate Degree 31.1% 25.0% 18.8% 2018 Estimated Total Businesses 802 3,365 6,979 2018 Estimated Total Employees 9,962 36,729 76,964 2018 Estimated Employee Population per Business 12.4 10.9 11.0 2018 Estimated Residential Population per Business 18.0 14.8 14.7 26.0% $160,000 $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $0 72.0% $145,271 Subject Non-Hispanic Hispanic $72,073 Houston

Thriving Economy SAN ANTONIO San Antonio is building the economy of the future. The area is already home to a thriving business community, including the headquarters for 2 Fortune Global 500 firms and 7 Fortune 1000 companies. Through the City s SA2020 initiative, it is focused on aggressively growing its unique business assets that attract talent, and foster innovation in key industries. These industries include: Aerospace Biosciences/Healthcare Defense Energy Information Technology & Cybersecurity Manufacturing These industries compliment the region s strengths, one of which is a labor force that's experienced, professional, diverse and growing. San Antonio s long history of military service and geographic location have produced a workforce that is adept at problem solving and naturally inclined to working across cultures. The city is also home to more 130,000 students studying at colleges and universities rapidly growing in both size and stature. San Antonio's excellent workforce pipeline is complemented by the region s cost of living, which is among the lowest among America s large cities. This allows companies to save costs doing business and allow its employees to enjoy an incredible quality of life. Add a central geographic location, a versatile transportation infrastructure that connects you to the entire continent, and the Alamo City is one of the best places to live, work, and enjoy the good life in the Americas.

Once known for its commitment to tradition, San Antonio has emerged as a renaissance city that is said to be the poster child of what booming American cities will look like in the future. The regeneration of urban space has created a culture that is not only unique to Texas, but the entire United States. Iconic areas such as The Pearl and Southtown are prime examples of how the City is resparking its appeal and repurposing historic areas to offer contemporary value. Young professionals, established businesses and fresh start ups that crave an environment in which to thrive and catapult their ideas and aspirations will all find their niche and contribute to the movement of boundless possibilities. SAN ANTONIO, TEXAS Located in the central southwest United States, San Antonio has the culture for business. Located at the confluence of several important logistical routes, as well as a crossroads of cultures, the city is uniquely positioned as central hub for North America. San Antonio sits along the historic Camino Real which linked modern day Mexico with the United States, and has nurtured its important two way business relationships for centuries. As a result, the local workforce is unique in its ability to understand business south of the border and help get your business setup faster and cheaper than anywhere else. The city s culture is also one of collaboration. Whether it is between the public and private sector or between government agencies, trust in San Antonians to come together and get the job done quickly. Business leaders across multiple industries have praised the city s effective and open communication style along with its attitude toward partnering with businesses. METRO POPULATION 2,332,345 MEDIAN ANNUAL SALARY $45,210 AVG HIGH/LOW TEMPS 80.2º / 58.6º MEDIAN AGE 34.4 MEDIAN HOME PRICE $210,000 AVG ANNUAL RAINFALL 32.3 inches Source: http://www.sanantonioedf.com June 2018

SAN ANTONIO, TEXAS CORPORATE HEADQUARTERS Employer Sector Number of Local Employees H-E-B SuperMarket Chain 20,000 USAA Financial Services & Insurance 17,000 Cullen / Frost Bankers Financial Services 3,982 Bill Miller Bar-B-Q Fast Foop Chain 3,540 Rackspace IT Managed Hosting Solutions 3,300 CPS Energy Utilities 3,022 Toyota Motor Manufacturing Auto Manufacturing 2,900 Clear Channel Communications, Inc. TV & Radio Stations, Outdoor Ads 2,800 Southwest Research Institute Applied Research 2,715 Valero Energy Oil Refiner & Gasoline Manufacturing 1,653 Harland Clarke Check Printing 1,500 KCI Medical Supplies 1,400 Tesoro Oil Refiner & Petroleum Products 1,300 HVHC Optical Manufacturing 1,200 Security Service Federal Credit Union Financial Institution 1,200 SWBC Insurance 1,200 NuStar Energy Energy 550 The 2017 Book of Lists, The San Antonio Business Journal and by contact with company representatives. Source: http://www.sanantonioedf.com June 2018

SAN ANTONIO, TEXAS MAJOR REGIONAL EMPLOYERS Employer Sector Number of Local Employees Lackland Air Force Base Military 37,000 Fort Sam Houston-U.S. Army Military 32,000 H-E-B Super Market Chain 20,000 USAA Financial Services and Insurance 18,305 Randolph Air Force Base Military 11,000 Methodist Healthcare System Health Care Services 9,620 City of San Antonio San Antonio 9,145 Baptist Health System Health Care Services 6,383 Wells Fargo Financial Services 5,703 Harland Clarke Managed Services 5,000 JP Morgan Chase Financial Services 5,000 Andeavor Oil Refiner 5,000 Bill Miller BBQ Restaurant Chain 4,500 AT&T Phone, Wireless and Internet Services 4,300 Valero Energy Corp. Oil Refiner and Gasoline Mktg 4,000 Rackspace IT Managed Hosting Solutions 3,540 CPS Energy Utilities 3,125 Six Flags Fiesta Texas Entertainment 3,000 Toyota Motor Manufacturing Manufacturing 2,834 CitiBank Financial 2,600 Southwest Research Institute Applied Research 2,574 Frost Bank Financial 2,242 The 2017 Book of Lists, The San Antonio Business Journal and by contact with company representatives. Source: http://www.sanantonioedf.com June 2018

A 268 UNIT CLASS "B-/C+" GARDEN APARTMENT COMMUNITY