AUSTIN, TEXAS MUELLER ROSE INVESTMENT SUMMARY 181 UNIT APARTMENT COMMUNITY

AUSTIN, TEXAS MUELLER ROSE INVESTMENT SUMMARY 181 UNIT APARTMENT COMMUNITY

EXECUTIVE SUMMARY HFF has been exclusively retained to offer qualified investors the opportunity to purchase the fee simple interest in Mueller Rose Apartments (the Property ). Built in 1970, Mueller Rose apartment community is comprised of 181 units spread across nine well-maintained buildings on a 5-acre site, complete with a large pool, expansive outdoor grilling/ picnic area with a playground and a newly renovated leasing office. Located in the dynamic Northeast Central submarket of Austin, TX, Mueller Rose is ideally situated to benefit from the reverberating growth north of Downtown Austin and adjacent Mueller Master-Planned community. Prominently positioned along Cameron Road, just off of Interstate Highway 35 (IH-35), the Property has immediate access to US-183 and US-290 providing residents with superior connectivity to the economic hubs found throughout the Austin metro. The infill, Northeast location allows for direct access to the top employers and entertainment options in Mueller (1 Mile), ACC Highland redevelopment (2 Miles), University of Texas (4 Miles) and Downtown (5 miles). Consistently occupied above 95%, Mueller Rose presents investors with an exciting opportunity to add value and increase rents with targeted interior renovations, capturing the pent up demand in this pocket for upgraded finish-outs. With zero new unit deliveries over the last 10 years and no units in the pipeline, demand for renovated product in this submarket is at an all-time high as a result of Austin s continued market-leading population and job growth showing no signs of slowing down. 2 EXECUTIVE SUMMARY MUELLER ROSE

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Property Overview Location Map Address 5700 Cameron Road Year Built 1970 Units 181 Avg. Unit Size 717 NORTHWEST HILLS WEST ANDERSON LANE WINDSOR HILLS Rentable SF 129,780 Occupancy (as of 8/13/2018) 98% Zoning CS-MU-V-CO-NP Acres 5.105 Parcel # 223354 WESTLAKE HILLS WESTLAKE TARRYTOWN CRESTVIEW HIGHLAND N LAMAR BLVD AIRPORT BLVD MUELLER ROSE MUELLER EAST AUSTIN DOWNTOWN OAK HILL SOUTH AUSTIN EAST RIVERSIDE Austin International Airport 4 EXECUTIVE SUMMARY MUELLER ROSE

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UPGRADED UNITS 6 EXECUTIVE SUMMARY MUELLER ROSE

INVESTMENT HIGHLIGHTS Current ownership has recently spent over $500,000 on various capital improvements, enhancing the properties curb appeal, as well as structural and mechanical items. New ownership is presented with the ideal opportunity to modernize the property through both exterior upgrades and higher end interior finish outs, which is becoming common place within this highly desirable submarket. Renovated class B &C product has performed exceptionally well as evidenced by 8% rent growth realized over the last 2 years in the submarket. In-place rents at Mueller Rose ($863/month, $1.20/SF) are approximately 25% below comparable market rents ($1,065/month, $1.41/sf). Single family home prices have monumentally risen nearly 70% over the last 5 years in this submarket, leading the entire Austin MSA. The renovation of single family homes in the immediate area has been extremely successful as young families and millennials continue to move to the quickly gentrifying location. The average sale price of $200/SF is still affordable when compared to the greater Austin area average of $300/SF. Covered Land Play The rectangular 5.105 land tract on the hard corner of Cameron and Reinli Road is an ideal urban land tract to be redeveloped into a larger scale mixed-use community. These size sites in highly desirable, high growth locations are becoming increasingly difficult to find as Austin continues to benefit from a robust economy. Demographic Highlights Within a 5-mile Radius of Mueller Rose 15.63% Population Growth 2010 2018 Over the next five years, the population is projected to grow by 8.10% Average household income is $92,607 $345K Median Housing Value 63% have a professional occupation 7

EXCELLENT INFILL LOCATION IN DYNAMIC GROWTH CORRIDOR Ideally located in Northeast Central Austin, Mueller Rose benefits from being positioned within the North Austin growth corridor as continuous expansion and revitalization reverberates outwards from the CBD and the Mueller Development Mueller Rose is conveniently situated between ACC Highlands Redevelopment to the northwest and the Mueller Master Planned Community to the southeast o o Mueller 700-acre master-planned community with approximately 4.6 million square feet of commercial and retail space expected upon completion. Alamo Draft House, Dell Children s Hospital and a brand new HEB Grocery headline new developments within the community, just to name a few. Highland Mall 81-acre future mixed-use development with 4 million square feet of commercial and residential space expected. Austin Community College anchors the development with 6,000 students expected to enroll upon completion. Located just off of IH-35 at the hard corner of Reinli Street and Cameron Road, the Property offers immediate access and connectivity to the city s major economic drivers located in the CBD less than 5 miles away. Additionally Mueller Rose offers convenient access to Austin s largest corporate users and technology tenants found in North Austin including Dell, Amazon, Google, Apple, IBM, Visa, Hanger, Charles Schwab, National Instruments, etc. The immediate micro location offers several nearby retailers including Target, HEB Grocery, Ross Dress for Less, The Home Depot, and more. Enhanced ingress/egress options with direct access to Austin s main IH-35, US-290, and US-183 thoroughfares. Additionally, Mueller Rose is located directly adjacent to city bus stops, allowing residents quick and easy use of public transportation. 8 EXECUTIVE SUMMARY MUELLER ROSE

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DOWNTOWN AUSTIN MUELLER DEVELOPMENT 64% have a Bachelor s Degree or Higher Population Growth: 62% Since 2010 Average Household Income: $90,626 Estimated Median Housing Value: $455,411 MUELLER DEVELOPMENT Dell Children s Thinkery Alamo Drafthouse H-E-B Grocery The Home Depot Marshalls Old Navy Starbucks Petsmart Best Buy Bed Bath & Beyond Staples ENROLLMENT Undergraduate CONFERENCE Graduate CAPITAL PLAZA Target Ross Foot Locker Champs CiCi s Pizza #5 Largest University in the U.S. #16 62% APPLICATION GROWTH Cumulative Over Last 10 Years US NEWS National Public University Ranking CAPITAL PLAZA MUELLER ROSE HIGHLAND REDEVELOPMENT THE LINC HIGHLAND REDEVELOPMENT Austin Film Society Office Depot Gold s Gym Pluckers WINDSOR PARK MEDIAN HOME VALUE: $345,000 11

CONTACTS MATT POHL Senior Director T: 512-532-1929 mpohl@hfflp.com SEAN SORRELL Sr. Managing Director T: 512-532-1924 ssorrell@hfflp.com SPENCER ROY Associate T: 512-532-1977 sroy@hfflp.com SEAN WOLFF Analyst T: 512-532-1954 swolff@hfflp.com MUELLER ROSE Financing: ROBERT WOOTEN Managing Director T: 512-532-1925 rwooten@hfflp.com hfflp.com FORREST BASS Senior Director T: 512-532-1964 fbass@hfflp.com MATT POHL Senior Director T:512-532-1929 mpohl@hfflp.com SPENCER ROY Associate T: 512-532-1977 sroy@hfflp.com DEAL TEAM SEAN WOLFF Analyst T: 512-532-1954 swolff@hfflp.com BRANDON ALLEN Analyst T: 512-532-1972 ballen@hfflp.com DEBT CONTACT: CASEY WENZEL Senior Director T: 512-532 -1923 cwenzel@hfflp.com 2018 Holliday Fenoglio Fowler, L.P., HFF Real Estate Limited (collectively, HFF ), HFF Securities L.P. and HFF Securities Limited (collectively, HFFS ) are owned by HFF, Inc. (NYSE: HF). HFF and its affiliates operate out of 25 offices and are a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform including debt placement, investment advisory, equity placement, funds marketing, M&A and corporate advisory, loan sales and loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF. Holliday Fenoglio Fowler, L.P. ( HFF ) has been engaged by the owner of the property to market it for sale. Information concerning the property described herein has been obtained from sources other than HFF and we make no representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all references to age, square footage, income, expenses and any other property specific information are approximate. Any opinions, assumptions, or estimates contained herein are projections only and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a buyer. Buyers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change.