Investment Highlights

INVESTMENT HIGHLIGHTS

Seller Currently Renovating Laundry Room with New Washers and Dryers (which would be owned by Property) and Flooring

Tremendous Visibility along W. William Cannon Drive (27,525 +/- cars per day according to TxDOT)

Strong Value-Add Opportunity with Continued Unit Interior Upgrades

Excellent Location | Close to CBD, Texas State Capitol, Convention Center, University of Texas (Dell Medical School), Austin Community College, and Lady Bird Lake

One of Austin’s Fastest Growing and Vibrant Submarkets

Convenient Access to Public Transportation

1980’s Construction with Pitched Composition Shingle Roofs

Available on an All Cash or Third-Party Financed Basis

2121 W. William Cannon Dr. | Austin, TX 78745 Shown By Appointment Only

Ellen Muskin - 512.343.2700 x3 Daniel Elam -512.343.2700 x4 [email protected] [email protected] Investment OPPORTUNITY

Well located in the rapidly gentrifying South submarket — Cheshire Gardens is situated at 2121 W. William Cannon Drive, just west of Manchaca Road, and conveniently located between Interstate Highway-35 (with traffic flow from Canada to Mexico) and MoPac Expressway (aka Loop One). William Cannon Drive is an East/West thoroughfare and well known as one of the more popular submarkets in the Austin MSA. This area benefits greatly from the growing developments to the north (Downtown, Warehouse District, Sixth Street, SoCo, Rainey Street, Austin Convention Center, State Capitol complexes, and SoLa). Further south are popular attractions, including South Park Meadows, the Lady Bird Johnson Wildflower Center, other major retail developments and flourishing single-family neighborhoods. Downtown is approximately 5 miles to the north. The University of Texas, including the newly opened Dell Medical Center/teaching Hospital, is one of the largest campuses in the nation — with 50,000+ students, and is located about 6.5 miles north.

Value-Add Opportunity — The property’s average rental rate is currently $833/unit, which is more affordable as compared to the Austin MSA average of $1,224/unit, according to Austin Investor Interests’ (AII) 2Q 2017 Trend Report. Increased rents are achievable with some unit interior enhancements, which might include new cabinetry, granite or hard surface countertops, dynamic paint colors, lighting and hardware upgrades, and black or stainless appliances. There is also one on-site laundry facility with washer/dryers owned by the Property. Improvements to that facility would be favorably received by the tenants. Rehabbed properties of comparable vintage in this submarket have rents starting at $1,025 for a 1BR and $1,245 for a 2BR. Potential ideas to improve the property exteriors include re-branding with new signage. Exterior paint was completed in Summer 2016. Interior renovations could include installation of granite countertops, tile back-splash, upgraded hardware package, bowls, sinks, etc.

According to Austin Investors Interest (2Q Trend Report), the South Austin submarket is averaging a healthy occupancy of 93.2% in all product classes. Transactions in 2Q included 23 assets that sold at an average price of $152,830/unit and $174/PSF. Investment OPPORTUNITY

Property Enhancements — The 58-unit community has an average unit size of 623+/- square feet, with a variety of studios, 1BR and 2BR units. Roofs are pitched composition shingle and exteriors are a combination of brick, stucco-like composite and hardi-board exteriors. Located on 1.457+/- acres (according to TCAD records), Cheshire Gardens consists of two and three-story buildings with individual electric HVAC systems and individual hot water in all residents’ units. Other property features are faux wood vinyl flooring throughout living rooms, bathrooms with ceramic tile tub surrounds, built-in bookshelves and spacious kitchens with darker wood cabinetry. Eight of the units were rebuilt due to a tenant-related fire that occurred in January 2015. Leasing efforts are enhanced by a convenient on-site management office, and community features include the central owner-operated laundry facility, private balconies and patios, stone walkways and brick pavers, swimming pool, lush landscaping, BBQ areas, and surface parking (82+/- spaces). The smaller size of Cheshire Gardens offers a true “community feel” amongst its residents. High-speed internet access is available to residents, and Google fiber is present in this vicinity. Located in the AISD School District, children would attend: Cunningham Elementary, Covington Middle School and Crockett High School, all very conveniently located close-by Cheshire Gardens Apartments. Cheshire Gardens DETAILS

Price: $6,100,000

Terms: All Cash

Pro Forma Cap: 5.5%

# of Units: 58

Total NRSF: 36,158 ±

Land Area: 1.457 ± ACR (TCAD)

Exterior: Siding, Hardi and Brick

Roofs: Pitched, Comp.

HVAC: Indiv. Electric

Hot Water: Indiv. in Units

Parking: 82 ± Spaces

Community FEATURES

Owner-Operated Laundry Facility (New Washer/Dryers and Flooring Currently Being Installed)

Spacious and Roomy Floorplans

Convenient On-Site Leasing Office

Sparkling Swimming Pool with New Outdoor Furniture

Brick Pavers Amidst Lush Landscaping

Picnic and BBQ Area | Pet Friendly Community

Ample On-Site Surface Parking

Close to Public Transportation Hubs

Private Balconies and Patios for Residents

Wood-look Faux Flooring

Walking Distance to Major Retail Centers

Easy Access to Downtown via IH-35, MoPac, and Smaller Arterials (S. First, S. Congress, Manchaca & Lamar) Financial ANALYSIS

UNIT MIX Unit Total Market Monthly Annual Rent Units SF± SF± Rent Mkt. Rent Mkt. Rent SF± 8 Studio 400 3,200 $700 $5,600 $67,200 $1.75 44 1 Bed/1 Bath 633 27,852 $895 $39,380 $472,560 $1.41 6 2 Bed/1 Bath 851 5,106 $1,065 $6,390 $76,680 $1.25 58 623 36,158 $886 $51,370 $616,440 $1.42

Trailing-12 from 2016 YE INCOME Pro Forma Sept. 2017 Actuals Scheduled Market Rent $616,440 — — Net Rental Income (before Insurance Rent) — $530,629 $462,989 Less: Loss to Lease 1.00% ($6,164) — * Less: Vacancy 4.00% ($24,658) — * Less: Concessions 0.50% ($3,082) — * Less: Non-Revenue Units & Bad Debt 0.25% ($1,541) $2,701 * Plus: Loss of Revenue-Insurance (Fire Units) — $16,890 $67,560 Net Rental Income $580,995 $550,220 $530,549

Plus: Fee Income (incl. Pet Fees) $18,000 $8,955 $10,126 Plus: RUBS Income $25,000 $21,452 $20,193 Plus: Laundry Income $4,000 $758 $2,359 Plus: Other Income $6,000 $1,964 $5,263 Total Operating Income (EGI) $633,995 $583,349 $568,489

EXPENSES Per Unit Pro Forma Administrative $147 $8,500 $7,584 $9,741 Advertising & Promotion $78 $4,500 $4,112 $1,245 Payroll $1,000 $58,000 $56,925 $73,433 Repairs & Maintenance $450 $26,100 $35,893 $26,659 Management Fee 4.00% $437 $25,360 $22,476 $20,526 Utilities $776 $45,000 $43,446 $36,060 Contracted Services $138 $8,000 $9,185 $7,294 Real Estate Taxes — 80% of ask price 2.213985% $1,863 $108,042 $49,632 $54,632 Insurance $275 $15,950 $13,652 $16,915 Total Expenses $299,452 $242,905 $246,506

Per Unit: $5,163 $4,188 $4,250 Per SF: $8.28 $6.72 $6.82 Net Operating Income $334,542 $340,444 $321,984

Notes: • *Fire occurred January 2015 in one building (8 units); property returned to 100% occupancy in December 2016 • Real Estate Taxes for 2017 based on Assessed Value of $2,556,700 at 2.213985% (2017 rate) • 2017 Insurance based on Building Insurance = $9,081, GL = $4,570.65 and Umbrella = $13,651.65 combined • Actual Cap Ex = $21,971 (Sept. 2017 T-12), $56,527 (2016), $46,696 (2015), $101,492 (2014) and $56,285 (2013) Floor PLANS

2 BR x 1 BATH

1 BR x 1 BATH

STUDIO Site & Location MAPS Laundry Recepticals 2 219 220 1 115 116 215 216 120 321 322 323 324 217 218 201 221 222 223 224 101

119 121 122 123 124 117 118 102 202

Patio 103 203 1 213 214 114

Pool Pinic Area 113 104 204 212 112

Office 310 309 308 307 306 305

211 111 210 209 208 207 206 205 111 109 108 107 106 105

W . William Cannon Dr

. Area MAP Neighborhood OVERVIEW

RETAIL RESTAURANTS ENTERTAINMENT

Southpark Meadows Kerbey Lane Alamo Draft House Slaughter Lane HEB Grocery Stores LongHorn Steakhouse Cinemark Southpark Meadows Sprouts Farmers Market Cane Rosso Regal Cinemas Westgate 11 Central Market Mighty Fine Frank Erwin Center Walgreens Radio Coffee & Beer Paramount Theatre Lowe’s Home Improvement Azul Tequila Blanton Museum of Art (U.T.) Sunset Valley Village Chuy’s Tex-Mex Umlauf Sculpture Garden Home Depot Evangeline Cafe The Long Center for the Performing Arts Shady Hollow Shopping Center The ABGB Harry Ransom Center (U.T.) Kohl’s Cafe Malta Circuit of The Americas DSW Starbuck’s Coffee Darrell K. Royal Football Stadium (U.T.) Costco Casa Garcia’s Frank Erwin Center (U.T.) Whole Foods Moontower Saloon Altitude Trampoline Park Arbor Trails Torchy’s Tacos Blue Starlite Mini Urban Drive In Town Square Shopping Center Galaxy Cafe Broken Spoke South Oaks Shopping Center Maudie’s Hacienda Westgate Lanes Cherry Creek Plaza Hyde Park Bar & Grill The Continental Club Tanglewood Village Shopping Center Madam Mam’s Thai Cuisine ZACH Theatre

EASY ACCESS OUTDOORS ADDITIONAL DESTINATIONS

Interstate Highway 35 Barton Creek Greenbelt 6 mi. to CBD Highway 71 / Ben White Zilker Park 9.7 mi. to U.T. (Main Campus) Loop One (MoPac Expwy) Barton Springs Pool 5 mi. to St. Edward’s University Brodie Lane Lady Bird Wildflower Center 8.2 mi. to Austin Convention Center South Congress Avenue Williamson Creek East Greenbelt 1.3 mi. to South First Street South First Street Mabel Davis District Park 1.9 mi. to South Congress Avenue South Lamar Boulevard Blunn Creek Nature Preserve 12 mi. to Austin-Bergstrom International Manchaca Road Airport (ABIA)

AISD SCHOOLS

Cunningham Elementary School CHESHIRE GARDENS Covington Middle School Crockett High School 2121 W. WILLIAM CANNON DR. Austin Economic FACTS

Economic Fundamentals Improving

Austin, Texas is ranked “The best place to invest in property and develop in 2017,” according to the annual Emerging Trends in Real Estate report by the Urban Land Institute and PricewaterhouseCoopers.

Forbes continues to rank Austin #1 as the “Next Biggest Boom Town in the U.S.” Austin also consistently sits atop Forbes’ annual list of the best cities for jobs.

Austin added 28,300 net new jobs, a growth of 2.8%, in the 12 months ending in May, making Austin the 12th fastest growing major metro (Austin Chamber of Commerce).

Austin is the No. 2 Best-Performing City in annual assessment of Where America’s Jobs are Created and Sustained, according to the Milken Institute in a December 2016 report.

According to a February 2015 report from U.S. News and World Reports, Austin was named #1 Best Place To Live in the USA.

Top Austin Employers State of Texas Government 63,000 University of Texas at Austin Higher education, public 23,131 Dell Technologies Computer technology solutions & equipment mfg./sales (Hdq.) 13,000 City of Austin Government 12,580 Austin Independent School District Public education 12,395 Federal Government Government 11,900 Seton Healthcare Family Healthcare (Hdq.) 10,270 St. David's Healthcare Partnership Healthcare (Hdq.) 8,598 Samsung Austin Semiconductor Semiconductor chip mfg., R&D (Hdq.) 6,074 Apple Computer maker's tech, chip engineering, & admin support center (Americas Hdq.) 6,000 IBM Corp. Computer systems, hardware, software, & chip R&D 6,000 Round Rock Independent School District Public education 5,798 Travis County Government 5,288 U.S. Internal Revenue Service Government (regional call & processing center) 5,200 NXP Semiconductors Semiconductor chip design & mfg. (Hdq.) 5,000 Texas State University-San Marcos Higher education, public 4,873 Leander Independent School District Public education 4,243 Austin Community College Higher education, public 3,553 Applied Materials Semiconductor production equipment mfg. & R&D 3,100 Others: Amazon, Bazaarvoice, IRS, Whole Foods Market, Accenture, AMD, Homeway, HP, Intel, GM, Activision Blizzard, Cisco Systems

(Source: Austin Chamber of Commerce) Information About Brokerage Services 11-2-2015 Texas law requires all real estate license holders to give the following information about brokerage services to prospective buyers, tenants, sellers and landlords.

TYPES OF REAL ESTATE LICENSE HOLDERS: • A BROKER is responsible for all brokerage activities, including acts performed by sales agents sponsored by the broker. • A SALES AGENT must be sponsored by a broker and works with clients on behalf of the broker.

A BROKER’S MINIMUM DUTIES REQUIRED BY LAW (A client is the person or party that the broker represents): • Put the interests of the client above all others, including the broker’s own interests; • Inform the client of any material information about the property or transaction received by the broker; • Answer the client’s questions and present any offer to or counter-offer from the client; and • Treat all parties to a real estate transaction honestly and fairly.

A LICENSE HOLDER CAN REPRESENT A PARTY IN A REAL ESTATE TRANSACTION:

AS AGENT FOR OWNER (SELLER/LANDLORD): The broker becomes the property owner's agent through an agreement with the owner, usually in a written listing to sell or property management agreement. An owner's agent must perform the broker’s minimum duties above and must inform the owner of any material information about the property or transaction known by the agent, including information disclosed to the agent or subagent by the buyer or buyer’s agent.

AS AGENT FOR BUYER/TENANT: The broker becomes the buyer/tenant's agent by agreeing to represent the buyer, usually through a written representation agreement. A buyer's agent must perform the broker’s minimum duties above and must inform the buyer of any material information about the property or transaction known by the agent, including information disclosed to the agent by the seller or seller’s agent.

AS AGENT FOR BOTH - INTERMEDIARY: To act as an intermediary between the parties the broker must first obtain the written agreement of each party to the transaction. The written agreement must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker's obligations as an intermediary. A broker who acts as an intermediary: • Must treat all parties to the transaction impartially and fairly; • May, with the parties' written consent, appoint a different license holder associated with the broker to each party (owner and buyer) to communicate with, provide opinions and advice to, and carry out the instructions of each party to the transaction. • Must not, unless specifically authorized in writing to do so by the party, disclose: that the owner will accept a price less than the written asking price; that the buyer/tenant will pay a price greater than the price submitted in a written offer; and any confidential information or any other information that a party specifically instructs the broker in writing not to disclose, unless required to do so by law.

AS SUBAGENT: A license holder acts as a subagent when aiding a buyer in a transaction without an agreement to represent the buyer. A subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first.

TO AVOID DISPUTES, ALL AGREEMENTS BETWEEN YOU AND A BROKER SHOULD BE IN WRITING AND CLEARLY ESTABLISH: • The broker’s duties and responsibilities to you, and your obligations under the representation agreement. • Who will pay the broker for services provided to you, when payment will be made and how the payment will be calculated.

LICENSE HOLDER CONTACT INFORMATION: This notice is being provided for information purposes. It does not create an obligation for you to use the broker’s services. Please acknowledge receipt of this notice below and retain a copy for your records.

Muskin Commercial,LLC 9000275 [email protected] (512)343-2700 Licensed Broker/Broker Firm Name or License No. Email Phone Primary Assumed Business Name

Ellen Muskin 334236 [email protected] (512)343-2700 Designated Broker of Firm License No. Email Phone

Ellen Muskin 334236 [email protected] (512)343-2700 Licensed Supervisor of Sales Agent/ License No. Email Phone Associate

Daniel Elam 616676 [email protected] (512)343-2700 Sales Agent/Associate's Name License No. Email Phone

Buyer/Tenant/Seller/Landlord Initials Date Regulated by the Texas Real Estate Commission Information available at www.trec.texas.gov TAR 2501 IABS 1-0 Muskin Commerical, LLC, 4705 Spicewood Springs Rd, Ste 200 Austin, TX 78759 Phone: (512)343-2700 Fax:(512)343-2703 IABS Ellen Muskin Produced with zipForm® by zipLogix 18070 Fifteen Mile Road, Fraser, Michigan 48026 www.zipLogix.com Muskin Commercial, LLC has prepared this brochure to provide summary information to prospective purchasers and makes no warranty or representation about the content. While this information has been obtained from sources believed to be reliable; Muskin Commercial, LLC has not conducted any investigation regarding these matters and prospective purchasers should independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are examples only and do not necessarily represent the current or future performance of the property. This brochure does not constitute an offer of sale, but is merely an invitation to bid.

MULTIFAMILY INVESTMENTS SALES

4601 Spicewood Springs Road, Bldg 4, Suite 101, Austin, TX 78759

ELLEN MUSKIN DANIEL ELAM 512.343.2700 x3 512.343.2700 x4 [email protected] [email protected]