BROKER'S OPINION OF VALUE

BROKER'S OPINION OF VALUE A 80 Unit Class C Multi-Family Asset 615 HOLIDAY DR. GALVESTON, TX 77550 4295 San Felipe Suite 355 Houston, TX 77027 www.ketent.com

$2,900,000 PRICE/UNIT: $53,704 PRICE/SF: $58.62 Units: 54 TERMS: ALL CASH Avg Size: 916 PRO-FORMA CAP RATE: 8.72% Date Built: 1963 Rentable Sq. Ft.: 49,470 Acreage: 1.21 Occupancy: 98% Class: C+ SALIENT FACTS: Available on an All Cash Basis Located in Galveston, Tx off I-45 S All Bills Paid asset Extensively rehabbed Close to UTMB, a major area employer Ideal for a smaller investor Producing good cash flow Galveston has a solid economy UTMB is reportedly hiring again! Possible seller financing - ask the Broker! For More Information Please Contact: Tom Wilkinson twilk4@ketent.com 713-355-4646 ext 102 4295 San Felipe, Suite 355 Houston, TX 77027 www.ketent.com

Physical Information Financial Information Proposed Loan Parameters Operating Information Number of Units Avg Unit Size Net Rentable Area 54 916 49,470 Asking Price $2,900,000 Est Mkt Rent (Feb-14) Price Per Unit $53,704 Amortization 25 Yrs Estimated Collections Price Per Sq. Ft. $58.62 Debt Service $145,977 Physical Occ (Feb-14) Land Area (Acres) 1.21 Stabilized NOI $252,763 Units per Acre 44.628 Date Built 1963 Est New Loan @ 70% of Asking Monthly P & I Interest Rate Date Due Water Meter / Master Elec Meter Master Master Est Res for Repl/Unit/Yr Yield Maintenance Roof Style Flat HVAC System Master $2,030,000 $12,165 5.25% 10 Yrs $300 Yes Est Ins per Unit per Yr Property Tax Information Tax Rate (2013) $46,800 $43,613 98% $525 2.54242 2013 Tax Assessment $1,394,000 2013 Taxes $35,441 Est Future Tax Assessment $2,240,000 Est Future Taxes $56,950 INCOME PRO-FORMA INCOME Current Street Rent with a 6% Increase 595,296 Estimated Gross Scheduled Income 595,296 Estimated Loss to Lease (.0% of Total Street Rent) 0 0% Estimated Vacancy (1% of Total Street Rent) (5,953) 1% Estimated Concessions and Other Rental Losses (2% of Total Street Rent) (11,906) 2% Estimated Utilities Income Estimated Other Income 10,738 Estimated Total Rental Income ESTIMATED TOTAL PRO-FORMA INCOME MODIFIED ACTUALS PRO-FORMA $49,608 / Mo $49,608 / Mo 0 $ / Unit / Yr $199 / Unit / Yr 588,176 588,176 $49,015 / Mo Jan thru Dec 2013 Income EXPENSE Fixed Expenses Taxes Insurance Total Fixed Expense Utilities Electricity Water & Sewer Gas including Franchise Taxes $523,351 Jan thru Dec 2013 YTD Expense Estimated Expenses Fixed Expenses Estimated Fixed Expenses $38,237 $708 per Unit 12/13 operating statement $59,713 $1,106 per Unit 2013 Tax Rate & Est Future Assessment $26,024 $482 per Unit Estimated $28,350 $525 per Unit Estimated 64,261 88,063 $1,190 per Unit $1,631 per Unit Utilities Estimated Utilities $43,150 $799 per Unit $43,150 $799 per Unit $30,481 $564 per Unit $30,481 $564 per Unit $13,531 $251 per Unit $13,531 $251 per Unit Total Utilities 87,162 $1,614 per Unit 87,162 $1,614 per Unit Other Expenses Other Expenses Estimated Other Expenses General & Admin & Marketing Repairs & Maintenance Labor Costs Contract Services $8,432 $17,914 $75,763 $17,321 $156 per Unit $332 per Unit $1,403 per Unit $321 per Unit $14,040 $24,300 $64,800 $17,321 $260 per Unit $450 per Unit $1,200 per Unit $321 per Unit Management Fees $20,628 3.94% $382 per Unit $23,527 4.00% $436 per Unit Total Other Expense 140,058 $2,594 per Unit 143,988 $2,666 per Unit Total Operating Expense 291,481 $5,398 per Unit 319,212 $5,911 per Unit Reserve for Replacement 16,200 $300 per Unit 16,200 $300 per Unit Total Expense 307,681 $5,698 per Unit 335,412 $6,211 per Unit Net Operating Income (Actual Underwriting) 215,670 252,763 Asking Price 2,900,000 "As-Is" Price 2,900,000 "All In" Cost Cap Rate Proposed Debt Equity Estimated Debt Service Cash Flow Cash on Cash 7.44% 2,030,000 870,000 145,977 69,694 8.01% 8.72% 2,030,000 870,000 145,977 106,786 12.27% NOTES: ACTUALS: Income and Expenses were calculated using owner's 12/13 operating statement. PRO FORMA: Income is Pro Forma as Noted. Taxes were calculated using 2013 Tax Rate & Est Future Assessment. Insurance is estimated. Management Fees calculated as 4.% of Gross Income, Other expenses are Estimated for the Pro Forma. 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. 2/25/2014 CarriageHouse.xlsx

PROPERTY OVERVIEW Keymap: 775K Construction Quality: C PROPERTY INFORMATION AMENITIES EXISTING MORTGAGE TAXING AUTHORITY - GALVESTON COUNTY Age: 1963 Carports Park & Ride Nearby Mortgage Balance ACCT NO: R102892 Elec Meter: Master Cable Ready Walk-In Closets Amortization Galveston County $0.583700 A/C Type: HVAC Club House School Bus Pick-up P & I Galveston College $0.187000 Water: Master Laundry Rooms Shuttle Route Type Nav District #1 $0.046618 Wiring: Copper Mini Blinds Patios/Balconies Assumable County Rd & Flood $0.006100 Roof: Flat Pool Monthly Escrow Galveston ISD $1.165000 Paving: Concrete Bookshelves Origination Date City of Galveston $0.554000 Materials: Brick Outside Storage Due Date # of Stories: 2 Ceiling Fans Interest Rate Parking: Yield Maintenance Buildings: 7 Transfer Fee 2012 Tax Rate/$100 $2.542418 Units/Acre: 44.63 *In Select Units 2013 Tax Assessment $1,394,000 COLLECTIONS UNIT MIX No. Total 12 Mo Avg $ 43,613 $60,000 Type Units Sq Ft SqFt Rent Total Rent Rent/SF Jan 2013 $ 45,949 $50,000 Feb 2013 $ 36,266 1 Bed/1 Bath 30 876 26,280 $795 $23,850 $0.91 Mar 2013 $ 41,075 $40,000 2 Bed/1 Bath 15 950 14,250 $875 $13,125 $0.92 Apr 2013 $ 40,854 2 Bed/2 Bath 4 970 3,880 $1,050 $4,200 $1.08 $30,000 May 2013 $ 46,131 3 Bed/2 Bath 5 1012 5,060 $1,125 $5,625 $1.11 June 2013 $ 44,306 July 2013 $ 47,847 Aug 2013 $ 46,495 Sept 2013 $ 40,314 Oct 2013 $ 45,924 Nov 2013 $ 38,274 Dec 2013 $ 49,917 $20,000 $10,000 PLEASE DO NOT VISIT THE SITE WITHOUT AN APPOINTMENT MADE THROUGH THE BROKER. $- Jan 2013 Feb 2013 Mar 2013 Apr 2013 May 2013 June 2013 July 2013 Aug 2013 Sept 2013 Oct 2013 Nov 2013 Dec 2013 Source: Owner's 2/14 Unit Mix Total / Avg 54 916 49,470 $867 $46,800 $0.95 Units/Type PROPERTY HIGHLIGHTS The Carriage House Apartments, is a two story, garden-style, apartment community located in the Galveston submarket south of Houston, Texas, off I-45 south. The asset was built in 1963. Residents enjoy ample amenities which include: mini-blinds, kitchen pantries, ceiling fans, laundry facilities, patios and balconies and walk-in closets. The property is "All Bills Paid". The property was extensively rehabbed after the last storm. The asset is close to UTMB and has a lot of medical students. Galveston properties are enjoying high occupancy and rents are expected to rise. 7% 28% 9% 56% 0-Jan 2 Bed/1 Bath 2 Bed/2 Bath This asset is ideal for a long term owner operator. There may be a potential to convert to condos as well. 3 Bed/2 Bath Seller may consider owner financing with 25% down. Ask the Broker for details. 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.

PROPERTY LOCATION DIRECTIONS TO PROPERTY: From Downtown, take I-45 south towards Galveston. I-45 S will become Broadway. Make a left onto Holiday Dr. The property is on the left.

RENT COMPARABLES RENT COMPARABLES (February 2014 O'Connor & Associates) Property Name Yr Blt Occ #Units Sorted by Avg Rent/Unit Avg SF Avg Rent P/SF 1 Park at Cedar Lawn 4400 Avenue N 1975 100% 192 991 $862 0.870 2 Chateau LaFitte M 711 Holiday Dr 1958 95% 73 906 $906 1.000 3 Sandpiper Cove 3916 Winnie 1971 100% 192 817 $931 1.140 4 Villa Marina M 210 Stand Blvd 1969 86% 184 769 $938 1.220 5 Seaside Village 4925 Fort Crockett M - Master metered rents have been reduced by $.08/ft to make equivalent to individually metered rents. Totals/Averages Comps 1972 94% 147 917 $943 1.028 Carriage House M 615 Holiday Dr 1987 90% 92 1104 1963 98% 54 916 $793 $0.87 Sub-Market Averages(Galveston) 87% 5,996 825 $790 0.977 Houston Market Avgs 91% 592,478 868 $832 0.962 $1,005 0.910 4 2 CARRIAGE HOUSE APARTMENTS 3 1 5

SALES COMPARABLES SALES COMPARABLES (Sorted by Price/Sq. Ft.) Property Name Date Sold Price Sq. Ft. Price/Unit Price/SF Built Units 1 1908 Church 1908 Church 2 Windmere 7820 Seawall Blvd 3 1327 Ave M 1327 Ave M 1/2 4 2502 Ave L 2502 Ave L 5 Sealy 4209 Sealy 1/11 $312,025 6,016 $31,203 $51.87 1968 10 6/13 $4,968,750 84,825 $48,713 $58.58 1980 102 2/13 $200,000 3,234 $33,333 $61.84 1970 6 5/13 $1,275,000 20,502 $63,750 $62.19 1969 20 11/11 $661,400 9,888 $41,338 $66.89 1969 16 Totals/Averages Comps $1,483,435 24,893 $43,667 $60.27 1971 31 Carriage House M 615 Holiday Dr $2,900,000 49,470 $53,704 $58.62 1963 54 1 5 4 3 CARRIAGE HOUSE APARTMENTS 2

AREA INFORMATION STATE OF TEXAS ECONOMY Job growth, sales tax collections both from business and consumer purchases as well as automobile sales, signal that the Texas economy has emerged from the recent recession. Another indicator that the state s economy has been comparatively healthy was the U.S. Bureau of the Census report that Texas added more people (nearly 4.3 million) than any other state between the census counts of 2000 and 2010. Entering 2011, more than half the jobs shed by employers during Texas shorter recession have already been recovered as our economy recovers more quickly than the U.S. as a whole. Nationally, only 13.4 percent of recession-hit jobs had been recovered ending 2010. Texas and the nation returned to economic growth in 2010, with the nation increasing its GDP by 2.8 percent and Texas increasing its GSP by 3.4 percent. Jobs Texas December 2010 unemployment rate was 8.3 percent, up from 8.2 percent in November. Texas total nonfarm employment increased by 20,000 jobs from November to December. Between December 2009 and December 2010, Texas gained 230,800 jobs. The U.S. gained 36,000 total nonfarm jobs in January 2011. The U.S. unemployment rate was 9.0 percent in January 2011, a 0.4 percent decrease from December. The Texas unemployment rate has been at or below the national rate for 47 consecutive months. Houston Economy Though Houston's energy industry has helped the city stave off the effects of the national recession, the city's economy has been enhanced by diversification resulting in 53% independence from the energy industry, which allows for a more robust economy and supports further commercial development. The economic diversification includes growth in high technology industries (computer and aerospace), medical research, health care, social assistance, and professional services. With its favorable incentives and accommodating infrastructure, Houston has quickly become a preferred international hub. The Port of Houston is the world's sixth largest port and ranks first in the United States in terms of international tonnage and second in total tonnage. Houston's infrastructure is also strengthened by three airports, which form the fourth largest airport system in the national and sixth largest in the world, as well as a massive trucking and rail system. Numerous Fortune 500 companies, multi-nationals, and domestic companies maintain operations here. Ranking third in the nation, there are 21 Fortune 500 companies that are headquartered in Houston, and more than half of the world's largest 100 non-us based corporations have operations in Houston. Houston is a major corporate center and its geographic advantage, incentive, stable economy, and growing workforce continue to attract corporations to relocate and expand here. Houston's economic base continues to diversify and decrease it dependence on energy. In fact, nonenergy sectors have accounted for 87% of net job growth since 1987, further reducing Houston's vulnerability to downturns in the energy industry. With is rapidly expanding population and solid economic base, the city is primed to benefit from its growing international reputation as a global destination of choice for residents, tourists, and businesses alike. The Texas Workforce Commission estimates more than 2.5 million jobs exist in the Houston MSA. The workforce is characterized as young, educated, and highly skilled, which are attractive to businesses and support future job growth. Houston has the lowest median age, 32.8, of the nation's 10 largest metropolitan areas. Currently, more than 1/4th of all adult Houstonians have completed college, compared to 1/5th of the U.S. adult population. Houston has the lowest cost of living among the nation's 23 largest metropolitan area, a key contributor to Houston's ability to continually rank among the nation's most desirable cities for companies looking to relocate or expand their operations. Housing Thus far, Texas has weathered the national real estate crunch without significant damage to property values. Sales and construction activity dropped to pre-2007 levels but began to shows signs of recovery in 2010. A total of 4,170 building permits for single-family homes were issued in December 2010, 887 fewer than a year ago. In the 12 months ending in December 2010, 62,980 permits were issued, 1 percent less than one year ago. The number of multi-family building permits issued rose from 989 in December 2009 to 1,200 in December 2010. During the 12 months ending in December 2010, 18,716 permits were issued, 12 percent more than one year ago. In December 2010, sales of existing single-family homes increased by 16 percent from the previous month, to a total of 15,752. December 2010 home sales were 3 percent lower than in December 2009. In Texas, the median price for existing single-family homes increased by 4.1 percent from December 2009 to December 2010. Texas experienced 14.897 foreclosure filings in January 2011. Consumer Confidence Index U.S. consumer confidence increased by 14 percent from December 2010 to January 2011, rising to 60.6. Consumer Confidence now stands 7 percent higher than one year ago. The Texas region s consumer confidence index increased from 69.5 in December 2010 to 90.8 in January 2011, and is now up 26 percent from its level one year ago. Oil and Natural Gas Natural gas and oil production tax collections combined are 70 percent higher for the first five months of fiscal year 2011 compared to the same period in 2010. By contrast, fiscal 2010 oil and natural gas production tax collections combined were 24 percent lower than collections in 2009. After reaching a 2008 summer high closing price of $145.29 to a low of $33.98 during February 2009, crude oil futures reached a settled price of $86.73 on Feb. 10, 2011. Similarly, natural gas futures prices have followed a similar path reaching a summer 2008 high of $13.58 and then falling to a Sept. 3, 2009 low of $2.51. Prices recently settled at $3.99 on Feb. 10, 2011. Taxes Texas sales tax receipts for January 2011 were 10.4 percent higher than for January 2010. For fiscal 2010, state sales tax receipts were down 6.6 percent from fiscal 2009. Motor vehicle sales tax collections for January 2011 were 19.6 percent higher than for January 2010. Nationally, leases accounted for 28.1 percent of new vehicle sales in November 2010, an increase of 15.6 percent from November 2009. Source: Texas Ahead, February 11, 2011 - Texas Comptroller's Office

DEMOGRAPHICS 1 Mile Radius 3 Mile Radius 5 Mile Radius Population 2015 Total Population Projection 35,327 236,436 568,588 2010 Total Population 34,142 227,858 556,927 2000 Total Population 33,761 222,376 534,893 1990 Total Population 25,975 172,374 436,813 Spring 2010 Demographics Total Population 34,142 227,858 556,927 Total Households 13,200 92,331 224,117 Ethnicity Female Population 16,490 112,080 278,241 % Female 48.3% 49.2% 50.0% Male Population 17,652 115,778 278,686 % Male 51.7% 50.8% 50.0% Population Density (per Sq. Mi.) 10,867.6 8,058.7 7,090.9 17% 8% White Black Age: Median Age 31.0 31.5 33.3 53% 10% Asian Other Housing Units 12% Hispanic Total Housing Units 14,912 105,839 256,611 Owner Occupied Housing Units 17.9% 22.7% 32.7% Renter Occupied Housing Units 70.7% 64.6% 54.7% Vacant Housing Units 11.5% 12.8% 12.7% Race and Ethnicity American Indian, Eskimo, Aleut 0.3% 0.3% 0.3% Asian 21.5% 12.2% 11.5% Black 16.5% 20.3% 20.4% Hawaiian/Pacific Islander 0.1% 0.2% 0.1% White 36.7% 45.1% 50.2% Other 19.5% 17.1% 13.4% Multi-Race 5.5% 4.8% 4.1% Hispanic Ethnicity 52.8% 47.2% 39.3% Not of Hispanic Ethnicity 47.2% 52.8% 60.7% 47% Hispanic 53% Non-Hispanic Educational Attainment: Total Population Age 25+ 20,957 142,022 354,504 Grade K - 8 19.9% 15.5% 12.0% Grade 9-12 11.2% 10.2% 8.4% High School Graduate 22.9% 21.8% 19.6% Associates Degree 4.6% 5.4% 5.6% Bachelor's Degree 15.9% 19.4% 23.3% Graduate Degree 9.2% 10.3% 13.1% Some College, No Degree 16.3% 17.5% 18.0% Average Income Subject/Houston Household Income: Average Household Income $50,395 $59,866 $76,811 Median Household Income $31,205 $36,155 $44,205 Per Capita Income $19,950 $24,691 $31,437 Average Household Income - Houston $72,073 Business and Employment: Number of Employees 14,412 148,169 325,499 Number of Establishments 1,530 13,058 28,984 Subject Houston

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