PROPOSAL FOR MANAGEMENT AND LEASING OF THE COMMONS AT WILLOWBROOK Presented to: L&B Realty Advisors, LLP Department
OCTOBER 2014 THE COMMONS AT WILLOWBROOK
TABLE OF CONTENTS
Section 1 Executive Summary
Section 2 Company Background
Section 3 Project Staffing
Section 4 Property Management
Section 5 Financial Reporting and Budgeting
Section 6 Construction Management
Section 7 Leasing and Marketing
Section 8 Other Requirements
Section 9 Fee Recommendation
Appendix Section I - Executive Summary
THE COMMONS AT WILLOWBROOK | Property Management and Leasing Services Proposal 3 THE COMMONS AT WILLOWBROOK | Property Management and Leasing Proposal
Transwestern is pleased to present its qualifications to provide management and leasing services for L&B Realty Advisors, LLP, at The Commons at Willowbrook in Houston, Texas. We understand the importance of this assignment and we are dedicating our most senior professionals who know retail and have operating knowledge of L&B Realty Advisors, LLP procedures from our Houston headquarters Why Transwestern? to direct the management and leasing of this project, we have developed the following overview that outlines why we believe Transwestern has been involved in UHERP Transwestern is the best full-service provider to steward the future of since its inception, creating value and this important L&B Realty Advisors, LLP asset. operational functionality and property Our People enhancement Transwestern believes the strength of our company resides in our ▪▪ Long History of Value Creation for our people, values and systems. Transwestern focuses on hiring quality Clients people, developing them and retaining them. Our Senior Property Managers have an average of 20 years of experience in Houston. ▪▪ Yardi Expertise
Our Vision ▪▪ Seamless Take-Over Strategy Our vision is to be the “#1 Real Estate Value Creator in America” – and ▪ Continuity of Building Service our history shows it. It is our goal to consistently deliver unrivaled ▪ Excellence value to our clients by empowering our people and fostering an entrepreneurial environment. ▪▪ Houston is Our Home - Unparalleled Our Values Depth of Relationships and Resources
Our values drive our operating systems and standards with ▪▪ Market Presence, Depth of Local, exceptionally strong local, regional and national support. The guiding Regional and National Resources principles that make up our culture include integrity, mutual respect, legendary service, teamwork, financial strength, life balance and the ▪▪ Experienced Property & Facility value of relationships. Management Professionals Our Performance ▪▪ Senior Level Leadership and Strategy Our management and leasing expertise is based on strong policies, procedures and is unparalleled in the real estate industry. ▪▪ National Procurement Program As an example, Transwestern Accounting ranked 96% for Overall Satisfaction in the recent Kingsley Survey. Additionally, Transwestern ▪▪ Deep Experience and Excellence with ranked 89% for Overall Satisfaction with Kingsley Survey and Trophy Projects achieved an 84% Renewal (Tenant Retention) Rate versus 51% for the Kingsley Index. ▪▪ Business Continuity and Emergency Preparedness Program Further, our energy expertise and municipal relationships have saved our ▪▪ Nationally Recognized for Leadership clients millions of dollars and added tens in the Energy Star® and LEED® Programs of millions in value. Transwestern has been recognized by ENERGY STAR for ▪▪ Committed to Green sustainability 11 consecutive years: as a Partner of the Year in 2004 and 2005 and a Sustained Excellence recipient in 2006 through 2014 – the first third-party commercial real estate services provider to achieve both. Transwestern is confident our strong credentials, unsurpassed management and leasing abilities and company resources will bring the most comprehensive and knowledgeable team available in the market. We are proactive in our thought process on management and leasing issues and bring this process to every property and situation.
Section I - Executive Summary 4 Section II - Company Background
THE COMMONS AT WILLOWBROOK | Property Management and Leasing Services Proposal 5 THE COMMONS AT WILLOWBROOK | Property Management and Leasing Proposal
a Organization overview
Transwestern is a privately held real estate firm specializing in agency leasing, property and facilities management, tenant advisory, capital markets, research and sustainability. The fully integrated global enterprise leverages competencies in office, industrial, retail, multifamily and healthcare properties to add value for investors, owners and occupiers of real estate. As a member of the Transwestern family of companies, the firm capitalizes on market insights and operational expertise of independent affiliates specializing in development, real estate investment management and research. Transwestern has 34 U.S. offices and assists clients through more than 181 offices in 40 countries as part of a strategic alliance with Paris-based BNP Paribas Real Estate.
B Corporate organizational chart
Regional Leadership operational Leadership
Rob Bagguley Robert Duncan Steve Harding Colleen Dolan Market Leader, Executive Vice President Chairman Chief Financial Officer West (interim) Human Resources
Jack Eimer Larry Heard Tom McNearney Eugene Kesselman President, Central President & CEO Chief Investment Officer Chief Information Officer
Keith Foery Chip Clarke Mark Doran Rob Bagguley Mike McLain Executive Managing Director President, Americas Chief Operating Officer Chief Innovation Officer Chief Accounting Officer Market Leader, Mid-Atlantic
Bruce Ford Steve Pumper Allan Skodowski Executive Vice President Managing Senior VP President, Southeast Capital Markets Sustainability Services
Phil McCarthy Amber Strang Vicki Hollon Executive Managing Director Executive Managing Dir. Managing Senior VP IQA Market Leader, Mid-Atlantic Tenant Advisory Services
Steve Purpura Kim Croley Executive Managing Director Senior Vice President Market Leader, Northeast National Marketing & Comm.
Kevin Roberts President, Southwest
Mike Watts President, Midwest
Section II - Company Background 6 THE COMMONS AT WILLOWBROOK | Property Management and Leasing Proposal
Transwestern National Team
ROBERT DUNCAN, Chairman LARRY P. HEARD, President and Chief Executive Officer Robert founded Transwestern in 1978. He has directed Transwestern’s expansion from a As President and Chief Executive Officer, local development company based in Texas Larry provides executive leadership to to a major national diversified commercial Transwestern and is actively involved in real estate organization today. business development, client relations and delivering the firm’s resources to our clients.
CHIP CLARKE, President | Americas MARK DORAN, Chief Operating Officer As President | Americas, Chip directs As Chief Operating Officer, Mark provides Transwestern’s overall operations in North leadership and support for the national and and South America. In this position, he major growth initiatives of Transwestern. oversees the firm’s brokerage services and In addition, Mark works closely with other property management projects across the members of senior management in the Americas. He is responsible for securing development and execution of company and growing all service lines in markets strategies. targeted for expansion by Transwestern, and he handles the creation and management of strategic initiatives with international partners in the Americas.
STEVE HARDING, Chief Financial Officer STEVE PUMPER, Executive Managing Director Investment & Asset Services As Chief Financial Officer, Steve oversees all financial matters of the company, including Steve oversees Transwestern’s investment accounting and reporting, cash management and asset services group and provides and forecasting and internal auditing. Steve national leadership for Transwestern’s also oversees project accounting and the institutional new business development and development of national standards and client service delivery. policies for financial projects undertaken in the regions.
TOM MCNEARNEY, Executive Managing Director, Development and Investment Tom leads Transwestern’s capital market efforts for its development and investment projects nationwide. He has extensive experience in securing, structuring and negotiating capital, both debt and equity, for acquisitions, developments and sales.
Section II - Company Background 7 THE COMMONS AT WILLOWBROOK | Property Management and Leasing Proposal
Transwestern Executive Team
REGIONAL LEADERSHIP CORPORATE LEADERSHIP
Rob Bagguley Robert Duncan Larry Heard Market Leader, West (interim) Chairman President & CEO
Mark Doran Chip Clarke Chief Operating Bruce Ford President, Americas Officer President, Southeast
OPERATIONAL LEADERSHIP
Kevin Roberts Steve Harding President, Southwest Chief Financial Officer
Jack Eimer Tom McNearney President, Central Chief Investment Officer
Phil McCarthy Rob Bagguley Executive Managing Dir. — Market Leader, Mid-Atlantic Chief Innovation Officer
Mike Watts Steve Pumper President, Midwest Executive Vice President, Capital Markets
Keith Foery Amber Strang Executive Managing Dir. — Market Leader, Mid-Atlantic Executive Managing Director, Tenant Advisory Services
Kim Croley Steve Purpura Senior Vice President, National Marketing & Executive Managing Dir. — Market Leader, Northeast Communication
Section II - Company Background 8 THE COMMONS AT WILLOWBROOK | Property Management and Leasing Proposal
C Houston regional organization chart
EXECUTIVE STRATEGIC LEADERSHIP
Robert Duncan Steve Harding Chairman Chief Financial Officer
Larry Heard Chip Clarke President & Chief President, Americas Executive Officer
Kevin Roberts President, Southwest
Property TENANT ADVISORY Retail Accounting Healthcare OFFICE Management
Justin Leighton Nick Hernandez Steve Ash, CPM® Elton Cribbs, CPA® Eric Johnson Doug Little Managing Director, Managing Director, Managing Senior Vice Senior Vice President National Director, Senior Managing Senior Vice President Retail Services President & Controller Healthcare Services Director
Eric Anderson Executive Vice President
David Baker Executive Vice President
INVESTMENT SALES CAPITAL MARKETS DEVELOPMENT INDUSTRIAL MULTIFAMILY
Jan Sparks Carleton Riser Ken Page Managing Director, Brian Gammill Ed Cummins President, Transwestern Managing Director Structured Finance Managing Director Senior Vice President Development Company Group
Section II - Company Background 9 THE COMMONS AT WILLOWBROOK | Property Management and Leasing Proposal
d Regions and size of organization including asset mixchart
Transwestern OFFICE LOCATIONS
SEATTLE
MINNEAPOLIS BOSTON GREENWICH MILWAUKEE NEW YORK DETROIT NEW JERSEY CHICAGO SAN FRANCISCO SALT LAKE CITY WALNUT CREEK BALTIMORE BETHESDA SILICON VALLEY DENVER WASHINGTON DC ST. LOUIS NORTHERN VIRGINIA
LOS ANGELES ORANGE COUNTY OKLAHOMA CITY SAN DIEGO PHOENIX ATLANTA
FORTWORTH DALLAS
AUSTIN SAN ANTONIO HOUSTON NEW ORLEANS ORLANDO
FORT LAUDERDALE MIAMI-DADE
Transwestern Publishes Market Reports In All 34 Office Locations Transwestern’s robust research platform – steeped in 35+ years of real estate acumen – is a valuable service for clients. In-house researchers generate market reports containing comprehensive data on dozens of markets in which we do business. Standardized reporting provides the capability to evaluate specific data points across multiple U.S. markets. Transwestern proactively identifies trends and analyzes market data, enabling clients to make informed decisions concerning assets, investments and strategies. Delta Associates, Transwestern’s real estate consulting affiliate with more than 30 years in the business, interprets metrics and trends to provide advisory and publication services for specific property types; development or redevelop location opportunities; forecasting; and highest and best use studies. In addition, Delta Associates publishes a National Economy report.
Section II - Company Background 10 THE COMMONS AT WILLOWBROOK | Property Management and Leasing Proposal
e Other properties and portfolio size managed and/or leased in the Houston market
Project experience
West Ave Pinecroft Center I&II City Centre River Oaks District Westheimer Rd & Kirby Dr Lake Woodlands Dr & Pinecroft Dr Beltway 8 & Queensbury Ln Kettering Dr & Westheimer Rd
Sienna Village Highstreet La Centerra at Cinco Ranch Kingwood Parc Highway 6 & Sienna Parkway Westheimer Rd & W Lane Dr Grand Parkway & Cinco Ranch Blvd Kingwood Drive & Highway 59
Market Street River Park Shopping Center Village at West Oaks Springwoods Village Lake Woodlands Dr & Six Pines Dr Highway 59 & Grand Parkway Highway 6 & Westheimer Rd I-45 & Grand Parkway
Deerbrook Marketplace Wood Ridge Plaza Sugar Land Town Square Cypresswood Court Highway 59 & FM 1960 I-45 & Lake Woodlands Parkway Highway 6 & Highway 59 I-45 & Cypresswood Drive
FAL FAL LBR LBR OO OO K K DR DR Copperfield Corners Telfair Crossing @ 518 The Market at Crenshaw Highway 6 & FM 529 Highway 6 & University Highway 288 & FM 518 Beltway 8 & Crenshaw Rd
HWY 249 HWY 249
NORTHWEST PARK NORTHWEST PARK ANTOINE DR ANTOINE DR
52,000 CPD 52,000 CPD SM SM IL IL IN IN G G W 20,240 CPD W 20,240 CPD O O O O D D L N L N
249 249 WEST RD WEST RD 17,710 CPD 17,710 CPD
N HOUSTON ROSSLYN RD N HOUSTON ROSSLYN RD SITE SITE 51,000 CPD 51,000 CPD
River Pointe Center I-45 & Richey 249 & Antoine Northpoint Crossing Highway 59 & Grand Parkway College Station
Section II - Company Background 11 THE COMMONS AT WILLOWBROOK | Property Management and Leasing Proposal
f Availability of competent staff support to provide management backup, administrative support, lease administration, MIS support, construction management, building systems technical services, marketing, advertising aupport
Steve Ash, CPM® Managing Sr. VP – Gulf Coast Region 22 years Roy Cook Managing Sr. VP – Engineering /Due Diligence 26 years John Wheeler II, RPA® SVP, Senior Property Manager 30 years Elton Cribbs, CPA® SVP, Controller – Gulf Coast Region 24 years Victoria Hollon, CPM® Managing Sr. VP, Management Services Operations 28 years Brett Williams, CPM® SVP, Senior Property Manager 15 years Stephanie Swanson, CPM®, LEED GA VP, Senior Property Manager 21 years Fred K. Whitty, RPA® VP, Senior Property Manager 32 years Robert Nguyen, CSM VP – Retail Services & Project Management 23 years
Billy Reed, CPM® VP, Senior Property Manager 26 years Lynn Thoms (CPM® Candidate) VP, Senior Property Manager 20 years Tod Harrison, CPM® VP/Senior Property Manager 24 years Ben Quinton, CPM® Senior Property Manager 29 years Kevin Drewes, LEED GA Senior Property Manager 24 years Morris Chen, LEED AP General Manager 9 years Cindy Ray, CPM®, General Manager 23 years Joseph Hebert General Manager 13 Years Cindy Niles, CPM® General Manager 20 Years construction: Jerry Allen SVP, Director of Eng & Construction 27 years Adam Lindsay VP, Director of Eng & Construction 22 years Mark Johnson Construction Manager 13 years
it: located in houston
Eugene Kesselman Chief Information Officer 14 years Alister Hibbert IT Ambassador 25 years
Marketing / advertising:
Shannon Bedinger Regional Marketing Director 12 years Rachel Alexander Director of Market Research 3 years Gregorio Barrera Creative Director 7 years
Section II - Company Background 12 THE COMMONS AT WILLOWBROOK | Property Management and Leasing Proposal
g Three institutional, third-party ownership references, preferably in the Houston market
SUN CaPITAL ADVISERS LLC TIAA-CREF invesco Matt Fortuin, Senior Director Duane Hale, Asset Manager Bill Brown, CPM - Asset Manager 781.466.1881 949.244.6807 972.715.5846 [email protected] [email protected] [email protected]
h Firm accreditations / certifications / memberships
VOTED BEST PLACES TO WORK - AUSTIN, CHICAGO, HOUSTON, ENERGY STAR® SUSTAINED EXCELLENCE WINNER LOS ANGELES, PHOENIX AND SAN ANTONIO For 11 consecutive years, Transwestern has been For many years, Transwestern's offices have been named recognized by the U.S. Environmental Protection Agency to local magazine and business journal "Best Places to (EPA) as ENERGY STAR® Partner of the Year (2004, 2005) Work" lists. and as a Sustained Excellence Partner (2006 - 2014) for outstanding contribution in reducing greenhouse gas BEST COMPANIES TO WORK FOR IN TEXAS emissions. For the seventh consecutive year, Transwestern has been RESPONSIBILITY TO OUR COMMUNITIES named in Texas Monthly magazine as a Best Company to Work For in Texas. This award program was designed As a company, Transwestern has a long-standing to identify, recognize and honor the best employers in commitment to give back to the communities we serve. Texas, benefiting the state's economy, its workforce and That same commitment is also firmly ingrained in the businesses. hearts of our people. In the last year alone, Transwestern team members have been active in hundreds of community and charity organizations.
i Conflicts of interest – service performed on competitive properties or other existing or potential conflicts
The Plazas at Lakewood Forest
Location 11550 Louetta Rd, Houston, TX 77070
GLA 26,439 SF
Role (Leasing, Mgmt, Development, Other) Retail Leasing & Mgmt
Date of Project Start 4Q 2012
Expected End Date of Project unknown
Competitive for Commons at Willowbrook tenants? No
Compensation: JV equity, Commission, Flat fee, Other? Commission
Section II - Company Background 13 Section III - Project Staffing
THE COMMONS AT WILLOWBROOK | Property Management and Leasing Services Proposal 14 THE COMMONS AT WILLOWBROOK | Property Management and Leasing Proposal
a Staffing Plan for property management, engineering and maintenance, leasing, accounting, construction management and other services proposed for this asset
The Commons at Willowbrook Houston, Texas L&B Realy Advisors, LLP
Grant Walker Vice President Kevin Roberts Retail Services Nick Hernandez President, Managing Director Southwest Crystal Allen Vice President Retail Services
Kristy Willoughby Robert Nguyen Vice President ® Chip Clarke Assistant Property Manager Steve Ash, CPM Managing Senior VP President, Americas Tobey Wilson LaTisha C. Staten General Manager Management Services Admin. Associate Management Services
Elton Cribbs, CPA® Larry Heard TBD George Minter Sr. VP / Sr. Controller President & CEO Engineer Project Accountant Irene Yong Accounting Manager
Robert Duncan Chairman Transwestern
b Responsibilities of each team member
GRANT WALKER, Vice President, Retail Services Grant will serve as the principal point of contact for Commons at Willowbrook and L&B Realty Advisors, LLC. Grant will work closely with the Transwestern Commons at Willowbrook team leaders to create value enhancement and top of the market retail deliverables for the project. Grant will lead the Leasing value by targeting all potential tenant mix strategies. cRYSTAL aLLEN, Vice President, Retail Services Crystal will lead the leasing and marketing efforts for the Commons at Willowbrook. She will prepare and distribute all marketing materials, leasing reports and leasing budgets, oversee all lease transactions and organize a strategy that will engage opportunities to effectively increase occupancy and net operating income. nICK hERNANDEZ, Managing Director Nick plays a leading role in the strategic direction and leadership of Transwestern in the area of retail services on a regional and national basis. With his Houston team, he is responsible for overseeing and executing retail transactions in the greater Houston/South Texas market place.
Section III - Project Staffing 15 THE COMMONS AT WILLOWBROOK | Property Management and Leasing Proposal
Kristy willoughby, Assistant Property Manager Kristy will be the onsite manager for the Commons at Willowbrook taking care of every day matters. Kristy will be responsible for operational duties, tenant relations, contract service administration, property payables/receivables, as well as reporting. LaTisha Staten, General Manager LaTisha will supervise and assist the on-site management team at the Commons at Willowbrook. LaTisha has direct experience working as a Property Manager for L&B previously at City Centre in Houston, Texas and knows their preferences and processes. She will be onsite at the Commons at Willowbrook regularly each month. She will lead property operations strategy, reporting, capital planning, lease administration and tenant relations Robert Nguyen, Vice President Robert will be overseeing the full retail management services delivery, personnel and will lead all Construction at the Commons at Willowbrook. Adam Lindsay, Vice President, Engineering and Construction Adam will support the property management in engineering supervision and large capital strategy at the Commons at Willowbrook. Steve Ash, CPM, Managing Sr. Vice President – Management Services Steve leads management services in Houston for a portfolio of approximately 30 million square feet. He will be responsible for the global staff resources, ensuring that the onsite team receives consistent, quality services and the staff is up to date on the latest changes in the industry. Steve will ensure that all Transwestern resources are made available where opportunities to add value and improve service exist. Elton Cribbs, CPA®, Senior Vice President – Senior Controller Elton will oversee the financial review of all accounting and reporting required for the project and assists the general manager, accounting manager and accounting team in coordinating the accounting to meet the needs of the ownership. Tobey Wilson, Administrative Associate Tobey will support the Commons at Willowbrook in payables/receivables, reporting, insurance certificate confirmation and vendor coordination.
c Contractor used and description/information of contractor if any of the services listed above are provided by a third party contractor
N/A
Section III - Project Staffing 16 THE COMMONS AT WILLOWBROOK | Property Management and Leasing Proposal
D Executive level oversight process and how it will be achieved
Commons at Willowbrook Houston, Texas L&B Realy Advisors, LLP
Grant Walker Vice President Kevin Roberts Retail Services Nick Hernandez President Managing Director Southwest Region Crystal Allen Vice President Retail Services
Robert Nguyen Kristy Willoughby ® Vice President Steve Ash, CPM Chip Clarke Assistant Property Manager LaTisha C. Staten Managing Senior VP President, Americas Tobey Wilson Management Services General Manager Admin. Associate Management Services
Elton Cribbs, CPA® Larry Heard TBD George Minter Sr. VP / Sr. Controller President & CEO Engineer Project Accountant Irene Yong Accounting Manager
Robert Duncan Chairman Transwestern
Section III - Project Staffing 17 THE COMMONS AT WILLOWBROOK | Property Management and Leasing Proposal
E Resumes of each team member
GRANT WALKER, Vice President, CRYSTAL ALLEN, Vice President, Retail Services Retail Services Grant currently serves as Vice President of Crystal specializes in Landlord Leasing the Retail Services Group for Transwestern and Tenant Representation. Prior to joining in Houston. He specializes in Tenant Transwestern, Crystal was a Senior Leasing Representation, assisting with site selection Representative at Brixmor Property Group, and market penetration for several national the second largest owner of community and and regional clients, as well as his continued neighborhood shopping centers in the US, work as a Retail Leasing Agent for multiple where she was a top producer executing Landlords throughout the Houston market. over two million square feet in transactions. Prior to Transwestern, Grant worked for Crystal is engaged in the marketing of Page Partners and The Weitzman Group in neighborhood, lifestyle/mixed used and new Houston, Texas. While at Page Partners and developments for a number of Landlord’s now at Transwestern, Grant specializes in to include Inland Lodging, Patrinely Group, Tenant Representation for national and local JEFCO Development, OliverMcMillan, Walton clients such as Darden Restaurants (Olive Street Capital and Ley Wilson Development. Garden, Red Lobster, Longhorn Steakhouse, Crystal also represents both national and Bahama Breeze, Season’s 52, Capital Grille local tenants to include Willa Boutique, and Eddie V’s), The Children’s Place, Lidia’s DEFINE Body and Mind, Menchie’s Frozen Italy, Wendy’s, Games Workshop, Marcos Yogurt and TF Supplements. Pizza, just to name a few. During his tenure with Page Partners, he was also involved with STEVE ASH, Managing Senior VP, Property some of Houston’s most high profile lifestyle / Management mixed use developments such as City Centre at Town & Country, La Centerra at Cinco Stephen is a member of Transwestern’s Ranch and High St in the Galleria. While with National Property Management Advisory The Weitzman Group, Grant specialized in Group and is also responsible for the Project Leasing with his portfolio containing property management and reporting over 2,000,000 square feet. During his tenure activities of approximately 34 million square there, he leased several notable grocery feet of commercial properties in Houston anchored/ power centers and assisted in site and Louisiana. Beginning his career in 1988, selection for regional and national tenants. Steve has contributed and overseen to the management of real estate projects in NICK HERNANDEZ, Managing Director, commercial office, industrial, healthcare and Retail Services retail properties including the 1.7 million square foot Four Oaks Place, the 1.55 million Nick plays a leading role in the strategic square foot Williams Tower, Marathon Oil direction and leadership of Transwestern in Tower, One Shell Square, Greenspoint the area of retail services on a regional and Plaza, 3D/International Tower, The Esperson national basis. With his Houston team, he is Buildings, and the Lakes on Post Oak. responsible for overseeing and executing Previously, he was an Asset Manager with retail transactions in the greater Houston/ NationsBank handling property management South Texas market place. A specialist in tenant and disposition. He has extensive experience representation, Nick’s client portfolio includes in building operations, financial reporting, many national and local retail and restaurant training of personnel, tenant improvement, tenants such as Darden Restaurants (Olive construction and leasing for office, industrial, Garden, Red Lobster, LongHorn Steakhouse, retail and medical real estate services. Capital Grille, Seasons 52, Eddie V’s, Bahama Breeze and Yardhouse), Enlightened Hospitality Group, Shake Shack, The Men’s Wearhouse, The Children’s Place, Peter Piper Pizza, K & G Menswear, Blue Lemon, Bombay Bowl, and Mod Pizza. Nick is also a veteran of project leasing using his skills in the urban/ lifestyle/mixed used developments, including Market Street at The Woodlands, LaCenterra at Cinco Ranch, Sugar Land Town Square, CityCentre at Town & Country, High Street, and West Ave. Section III - Project Staffing 18 THE COMMONS AT WILLOWBROOK | Property Management and Leasing Proposal
KRISTY WILLOUGHBY, Assistant Property LATISHA C. STATEN, General Manager, Manager, Facilities & Management Services Management Services Kristy serves as an Assistant Property As General Manager, LaTisha is responsible manager in the Retail Division of for managing a total of 1.8 million square Transwestern. Kristy currently manages feet in Houston which includes portfolios primarily neighborhood shopping centers in owned by KBS Realty, Travelers, BlackRock Houston for Sun Life Assurance Company of and TA Realty. LaTisha previously was Senior Canada. Her experience includes managing Property Manager for City Centre in Houston Spec’s Liquor, Goodwill, Aldi, Office Max and where she served L&B Realty Advisors, LLC Anna’s Linens. for tenants including Anthropologie, Houston Motor Club, J Crew, LuluLemon, Cyclone Anaya’s, Brios & Eddie V.’ Steakhouse
MARK JOHNSON, Project Manager- ROBERT N. NGUYEN, Vice President, Construction, Management Services Retail Services As Project Manager-Construction for Robert is currently responsible for sourcing Transwestern's Gulf Coast region, Mark new retail development opportunities for is responsible for providing project the company and supervises all functions management for Tenant Advisory Services of retail site management and construction and Property Management. project management. Robert also performs architectural design and space planning production internally. Robert has more than 19 years of experience in architecture design and consulting and over 29 years of retail ADAM LINDSAY, Vice President, Engineering management experience in the Houston and Construction area handling such accounts as Sharpstown As Vice President of Engineering and Mall, Marq-E Entertainment Center, Town & Construction Services, Adam is responsible Country Mall and Pasadena Mall. His previous for tracking and setting engineering experience includes seven years with standards for Transwestern in the Houston General Growth Properties in various malls market, as well as providing project throughout Texas. Robert has been involved coordination and oversight for as a select in several major construction projects such as portfolio of Houston properties. the Marq-E Entertainment Center, as well as numerous tenant improvement projects for planning and execution.
Elton Cribbs, CPA®, Senior Vice President – Senior Controller Elton oversees financial and accounting services for approximately 170 third-party commercial and development properties located in over 10 states. He directs the financial reporting, budgeting, and financial controls for the Houston and Chicago Transwestern accounting offices.
Section III - Project Staffing 19 THE COMMONS AT WILLOWBROOK | Property Management and Leasing Proposal
f Projects other than Commons at Willowbrook that involve these individuals - proposed allocation of time and expense
Management Team: Robert Nguyen, Vice President, Retail Services Robert is involved in supervising all of Transwestern’s retail assignments, as well as the strategy and implementation of large tenant improvements and unique capital projects. He will not be charged to Commons at Willowbrook. Robert will be at Commons at Willowbrook several days per month supervising the Transwestern Retail Management Services. LaTisha Staten, General Manager Retail Services LaTisha will be the responsible Manager for Commons at Willowbrook. She will be onsite weekly. We are asking for a 5% direct allocation reimbursement, but expect her involvement much closer to 20% during initial transition, data setup and L&B Realty’s procedures implementation, as well as strategic planning. LaTisha manages a portfolio of assets for travelers and AEN Kristy Willoughby, Assistant Property Manager Retail Services Kristy will be available to office onsite at Commons at Willowbrook three days per week for operations deliverables and highly responsive tenant relations, and property services. We are asking for a 50% direct allocation reimbursement for the onsite Assistant Property Manager. Kristy manages a portfolio for Sunlife Assurance.
G Principal point of contact and how management of this asset will be conducted through this individual
GRANT WALKER, Vice President, Retail Services Grant will serve as the principal point of contact for Commons at Willowbrook and L&B Realty Advisors, LLC. Grant will work closely with the Transwestern Commons at Willowbrook team leaders to create value enhancement and top of the market retail deliverables for the project. Grant will lead the leasing team value by targeting all potential tenant mix strategies.
Section III - Project Staffing 20 Section IV - Property Management
THE COMMONS AT WILLOWBROOK | Property Management and Leasing Services Proposal 21 THE COMMONS AT WILLOWBROOK | Property Management and Leasing Proposal
a Respondent’s management and engineering procedures and standards One of Transwestern’s core competencies is property management. We have an owner’s mentality that brings out the highest standards in any building we operate. It is our passion, and it shows. Transwestern’s property management team will maintain a superior service level, while consciously providing that service in a manner which achieves the lowest operating costs possible. Property management will play a significant role in attracting new tenants and preserving existing tenants. Transwestern has a highly talented and diverse pool of building engineers from which to draw for direction and support. Because of our experience in a variety of office projects, we can deliver the desired results to any engineering related issue that may develop. Our Houston-based national engineering leader, Roy Cook, and our respective local engineering leaders, are available to fully evaluate the mechanical and electrical systems and plant equipment of all buildings. Inspections are conducted immediately upon asset takeover and recur on a semi-annual basis. Once all building data is compiled, it is entered into Transwestern’s work order maintenance program. Scheduled reports can be customized to an owner’s needs and are typically distributed monthly for review by the owner as well as the senior property management team. Our engineers are provided continuing education classes in life safety, risk management, and OSHA requirements on a semi-annual basis, and we take pride in our Accident-Free Workplace Safety record. Our senior engineers are involved in the training, support, and supervision of all on-site engineering staff. In addition, we sponsor team members in BOMA, SMA, and SMT designations. As one of only a few companies in Texas who have a structured engineering department, we seek out the best engineers and have a track record of retaining them. Building operations is one of the management aspects in which we excel, bringing considerable value to this prestigious portfolio. Our integrated national engineering team led by Roy Cook provides the following resources unequaled in the industry: ▪▪ Written engineering training program, which allows continuing current education in applicable trades. ▪▪ Variable computerized preventative maintenance and tenant work order system electronically tracks engineering activities and bill backs. The system implementation will be at owner’s discretion and as approved in the annual budget process. ▪▪ Automatic Work Order Generation: wireless and paperless. ▪▪ Maximization of equipment and system reliability and occupant comfort while minimizing operating expenses and eliminating safety risks. ▪▪ Prevention of machine failures and extension of equipment life through predictive maintenance. ▪▪ Implementation of sound purchasing and inventory control practices. ▪▪ Focus on energy accounting and energy management to control utility costs - one of the highest expense components in a property’s budget. ▪▪ Identification of projects that can physically improve the property, lowering operating expenses, which improves overall tenant satisfaction and retention.
b How respondent will establish management and tenant services standards for the property and monitor the performance of service contractors and vendors Transwestern performs a physical site inspection to set a baseline for all capital and maintenance needs for the project. This inspection includes assessment of roof, rooftop equipment conditions/installations/risk, parking structure, striping, signage, landscape, painting conditions, graphics, lighting, waste area, as well as tenant façade signage/lighting. Our team prioritizes the needs to immediate/year 1, through year 5 based on best valuation and impact to ROI. Transwestern has an established network of proven vendors to facilitate repairs and other service needs to our managed projects. We hold them to the risk and quality standards required of our clients, as well as Transwestern. No project is complete until the Transwestern Manager inspects the assignment and approves it for payment. Our managers are responsible for the results. Tenant relations are core to our management success. Timely and professional responses to our tenants are the highest of priorities. A satisfied tenant renews, expands and ultimately pays higher rents. Transwestern measures our tenant relations by offering Kingsley Surveys annually to our projects at leveraged pricing. Personal interface is the key to successful tenant relations.
Section IV - Property Management 22 THE COMMONS AT WILLOWBROOK | Property Management and Leasing Proposal
c Respondent’s bid process for new contracts and evaluation methods for performance One of Transwestern’s critical responsibilities as a client-driven, results-oriented management group is the hiring and supervision of a team of qualified, reliable and cost-effective service providers. Transwestern works with numerous third-party vendors and service providers. It is Transwestern’s policy to obtain at least three bids for all service contracts utilizing a well-defined and precise set of specifications and review pricing for all major bids on an annual basis for the duration of the contract. The firm believes that a competitive bidding process among pre-qualified firms ensures the best pricing and service for owners. Transwestern has developed standardized specifications for services such as janitorial and security to maintain a consistent and high level of performance in all managed properties. Boilerplate service agreements developed by the firm’s in-house legal team are utilized as the contracting document unless owner requirements specify their pre- approved forms be employed. Insurance requirements, as individually established by each owner or as defined in Transwestern’s policies and procedures documentation, are rigorously checked and enforced. Transwestern’s clout and purchasing power accrued from the size of the firm’s management portfolio translates directly into volume savings for clients in the form of lower operating expenses. The firm has no ownership interest in any contract service provider and, as such, can obtain the best competitive prices. Transwestern runs internal comparisons between comparable properties to ensure all projects are receiving the best possible price and performance for janitorial, security and all other contract services. Transwestern has already implemented a number of volume discount programs. First, the company has negotiated several national purchase agreements based upon either a fixed discount or a discount on bid prices based upon Transwestern’s purchase volume with the particular vendor. This approach allows Transwestern the opportunity to monitor prices on an ongoing basis for each owner while obtaining a discount on the overall purchase volume of the company as a whole. Otis Elevators, Phillips Lighting, Pollock Paper Distributors, Nalco Water Treatment and Grainger Industrial Supply are just a few examples of the companies with which Transwestern has national agreements. Additionally, Transwestern has formed a national agreement with GE Power Buyer as a means of procuring a variety of goods and services. Utilizing Transwestern’s national purchasing power of more than 341 million square feet of managed and leased space, the firm routinely realizes consolidated purchasing leverage for clients. By streamlining the procurement process, this relationship helps owners and managers of real estate save time and money, as well as gain enhanced control over their operations.
d How respondent will identify and screen potential candidates and select and train building staff
The selection process for a Transwestern employee includes a rigorous interviewing schedule with appropriate supervisors, peers, and other subject matter experts. A proprietary skills test which indicates the candidate’s reasoning ability and experience level in various property management and finance tasks is included in the selection process as well. Our post-offer screening includes a thorough background check; including education, previous employment and criminal records, as well as a drug screen and US work authorizations. All of the selection criteria must be met before the candidate’s offer becomes final and a date to begin employment is established. The Management Services Boot Camp is a unique training program designed for new Property Management team members, based on their specific job responsibilities and property management role. The program is intended to ensure that new members of our property management team understand their roles and responsibilities, and are trained to perform these activities successfully, as well as to continually increase the competencies of our property management team. Not only does this program deepen Transwestern’s commitment as a learning organization, it also strengthens the financial performance of our buildings under management and enables the team members assigned to each property to perform at the highest possible level. As new hires progress through their individual training experience, from day 1 to year 2, they receive not only training in Transwestern’s policies and procedures, but also industry and client-specific training to help them succeed in their role. These training offerings include both on-line, classroom and one-on-one instruction to ensure that each team member receives the best and most current information. In addition, training resources are available 24 hours to our team members through our Intranet database known as TranSource. Each team leader sets specific team member goals and training needs and monitors their progress and rewards those achievements.
Section IV - Property Management 23 THE COMMONS AT WILLOWBROOK | Property Management and Leasing Proposal
Transwestern takes pride in our people, and helping them to succeed benefits our teams, our clients and our communities.
e Where proposed property management staff will be located Based on the size and quality of Commons at Willowbrook, Transwestern recommends onsite management presence. We are suggesting the Assistant Property Manager be onsite three days per week and have full office capabilities there at the agreed to vacancy location at the center. Additionally, the general manager, and designated engineer will be at the Commons at Willowbrook weekly to manage operations and provide strategic planning for operational management and provide managerial reporting and accounting.
Section IV - Property Management 24 THE COMMONS AT WILLOWBROOK | Property Management and Leasing Proposal
f Respondent’s approach with respect to the following miscellaneous inquiries:
Tenant Services: Tenant satisfaction and cultivating tenant relationships are critical to creating value through the achievement of above-market retention rates and market-leading rents. Transwestern’s tenant satisfaction program is one of the firm’s greatest strengths, and it consistently surpasses the highest service levels offered by competitors. Personal contact is supplemented by immediate access tenants have to each property manager, and all team members are empowered to resolve tenant issues on the spot. Transwestern maintains contact with each tenant in person, via telephone and in writing. Tenant satisfaction is directly correlated to tenant renewals and new tenant referrals. Excellent communication between property management and tenants is surprisingly easy to achieve. It is critical to know a tenant’s concerns, needs, issues and suggestions throughout the management process. These informal conversations and meetings provide a basis to identify specific problems or concerns and take necessary corrective action. In addition, anonymous surveys conducted annually by Kingsley Associates, a third-party consulting group, allow the firm to benchmark ongoing performance against other Transwestern properties nationally, as well as thousands of properties surveyed by Kingsley each year. Unless the property owner prefers another survey firm, Transwestern contracts Kingsley Associates to benchmark and measure tenant satisfaction at our commercial buildings. Maximizing The Efficiency of Building Systems and Energy Consumption: Operational audits are conducted by our senior engineering teams. These site inspections result in detailed reports that include current operational performance and recommendations for improvements as needed. Areas covered in these reports include: ▪▪ Chillers ▪▪ Lighting ▪▪ Cooling Tower ▪▪ Emergency Systems ▪▪ Energy Management ▪▪ Elevators ▪▪ Air Handling Equipment ▪▪ Structural / Roof / Curtain Wall Accounts Receivable and collection of Delinquent Accounts: Transwestern is mindful of the importance of monitoring and addressing Accounts Receivable issues. We have implemented the procedures below to expedite and facilitate cash collections and the proper recording of cash. ▪▪ Daily posting of cash ▪▪ Property Manager reviews application of cash to tenants’ accounts for propriety before it is posted to the ledger ▪▪ Monthly tenant statements are mailed or emailed so the tenant has at least a written monthly reminder of amounts due ▪▪ Accounts receivable aging reports are printed weekly and reviewed by the property manager Property manager follows up as needed with the tenant with calls or demand/default letters Transwestern recommends several automated business solutions to increase efficiencies and protect assets. For cash receipts we would recommend using an electronic solution, COLLECT. COLLECT is an automated receivables solution that eliminates the costly manual process of receiving, entering and depositing tenant rent payments. COLLECT enables tenants to pay their rent via U.S. mail (lock box) or online via an automated clearing house (ACH). COLLECT then imports the tenant cash receipts into the accounting application’s open batches for editing and posting in MRI. COLLECT offers same day processing, deposits and supports recurring ACH with varying monthly totals. Property Managers and Accountants get real-time access to the transaction process and the system is Sarbanes-Oxley compliant.
Section IV - Property Management 25 THE COMMONS AT WILLOWBROOK | Property Management and Leasing Proposal
COLLECT benefits: ▪▪ Provides real-time visibility of A/R cash flow ▪▪ Eliminates daily trips to the bank to make deposit deadlines ▪▪ Provides flexibility in payment options leading to tenant satisfaction ▪▪ Improves controls and consistency ▪▪ Frees up property personnel to focus on the property and tenants In the absence of an electronic solution, we would recommend the opening of a lockbox where all tenant payments are sent. Another electronic solution that assists in the communication of accounts receivable is the TANS – Tenant Account Notification System. TANS, our Tenant Account Notification System, was designed to automatically generate and deliver monthly statements via secure email. Tenants utilizing TANS receive statements electronically and immediately after rent charges have been processed. Lease Administration: One of the most important – and unforgiving – metrics with which to evaluate a property management firm is a property’s accounts receivable report. Central to the property management function is the firm’s ability to interpret a lease, infallibly invoice tenants in accordance with the lease, and promptly and professionally collect amounts when due. Good collection procedures lead to improved cash flow to the owner and help identify and correct payment problems in their infancy. When the firm takes over a new building or receives a new lease in a managed building, Transwestern assigns a professional lease administrator to review and abstract each lease. The lease administrator is responsible for locating and correcting lease errors (like an incorrect lease escalation date) or oversights (a lack of square feet listed in the lease). This prevents information from entering the lease database until it is 100 percent accurate and fully vetted. Once data is certified the administrator enters it into lease administration software and forwards the lease and abstract to the property accountant for entry into the accounting software. Before an invoice is generated for the tenant, the property manager reviews the lease, abstract and tenant information to ensure the lease has been interpreted and entered into the accounting software with unfailing accuracy. Property Appearance and Cleanliness: Through in-house education programs, Transwestern team members are trained to regularly view projects with a critical eye. In order to achieve the highest possible rent rates and increase tenant retention, the curb appeal of each property must be consistently exemplary. Transwestern provides all managers with a comprehensive property checklist that must be returned to the senior manager on a regular basis. Additionally, senior management and the regional Director of Engineering will complete a thorough inspection of the property at least once each year. Although local teams are empowered to oversee the property and its operations, senior managers take an active role in ensuring the property is managed to the highest standards of performance. Building Systems and Operations: On a national, regional and local basis, building automation systems (BAS) have been specified, designed, installed and programmed by Transwestern team members. Team members are also exceptionally skilled at programming building automation systems to deliver incremental cost savings without any interruption or change to service as perceived by the end-user. Transwestern provides these consulting services to clients across the country: ▪▪ Design, operation and maximum utilization of automated energy management systems ▪▪ Green Lights program requirements ▪▪ ENERGY STAR® building initiatives ▪▪ Tracking consumption, performing energy audits, identifying and initiating energy savings programs
Section IV - Property Management 26 THE COMMONS AT WILLOWBROOK | Property Management and Leasing Proposal
Preventative and Recurring Maintenance We highly recommend and provide access to a comprehensive, proprietary computerized work-order system, Angus Anywhere, as an Internet-based solution to properly administer: ▪▪ Tenant Maintenance Work Order Requests/Tracking and Billing Interface ▪▪ Physical Equipment Preventive Maintenance Program and Scheduling In addition to helping produce a more stabilized cash flow as ‘emergency’ repairs are minimized, our thorough, documented preventive maintenance program keeps building systems operating at peak efficiency. An effective preventive maintenance program begins with proper employee staffing, coupled with ongoing education and training, augmented by a comprehensive software program, and finished off by the necessary resources to properly maintain building systems. A well-designed, mechanized preventive maintenance software program allows for benchmarking in such areas as tenant service calls and ongoing repairs/maintenance issues. Efficiencies and streamlined procedures can be implemented based on data and trend analyses that ultimately result in cost savings for our managed assets and enhanced value for our owners. Utilizing standardized processes and established best practices, Transwestern’s corporate engineers have developed and initiated standard preventative tasks and procedures which are then incorporated into Angus AnyWhere, the firm’s standard Work Order and Preventative Maintenance Program. Developed by the Angus Systems Group, Angus AnyWhere’s web-based maintenance platform is implemented in more than 450 million square feet of commercial real estate throughout North America. Angus is a real-time application that interacts with most any handheld wireless messaging device to automatically dispatch and speed service delivery. Specialized request management tools keep coordinators constantly in touch with service levels, ensuring consistent attention to service. Customized, easy to use Tenant Services Interface reduces phone requests by approximately 80%. Transwestern intends to have the project webpages include tenant direct links to the Angus Anywhere Work Order System (https://www.ng1.angusanywhere.com/AA/LogIn/?ReturnUrl=%2faa). This provides critical electronic records for proactive management services and 24-hour access availability by tenants. Tenant Service Request pre-defines tenant billing rules, simplifies tenant chargeback processes, reduces revenue leakage and increases accuracy. The information gathered through Angus is used by Transwestern management and engineering for budget development, capital expenditure recommendations and preventative maintenance scheduling. Transwestern can provide this at our preferred rate of approximately $.01-.015/sf per year. The detailed information and favorable tenant responses will more than justify this property expense.
Section IV - Property Management 27 THE COMMONS AT WILLOWBROOK | Property Management and Leasing Proposal
Capital Improvements: Transwestern works closely with ownership in analyzing the costs and benefit of capital improvements as there are many variations in how these costs are considered. The process typically commences with a property review and assessment of the capital needs for the building. During the budgeting process, Transwestern develops a detailed multi-year capital plan for the building with the owner. During the budgeting phase, Transwestern looks at the potential payback and return on investment in a number of different ways: ▪▪ Increased energy efficiency resulting in lower annual energy costs (e.g. replacement of an inefficient chiller or boiler) ▪▪ Improvements to areas that may make the property more competitive in the given submarket ▪▪ Amortization of the capital improvement/replacement over a number of years and recovery through building operating expenses (i.e. pass through to tenants), provided this doesn’t contradict with terms of individual tenant leases Transwestern analyzes and discusses with the owner the property’s short- and long-term holding strategy. This may dictate what recommended capital improvements are considered immediately necessary or what can reasonably be expected as an “allowance/offset” when a potential purchaser completes its due diligence inspections (i.e., is it better to complete the capital improvement now or negotiate with the potential purchaser what the offset will be in the purchase price). In determining if a proposed capital improvement project should be recommended to ownership, Transwestern’s primary evaluative criteria is the project’s return on investment (ROI). Capital projects should generally only be undertaken if they can be shown to improve or maintain a property’s value. Numerous variables must be considered, including ownership’s projected holding period, the stage of the property’s life cycle, government regulations, opportunity costs and impact on tenants. Once a decision is reached to proceed with a capital improvement, the client receives professional attention to every detail, from initial budgeting through design, construction and punch list completion. Security, Fire/Life Safety and Emergency Procedures: Transwestern creates property-specific Tenant Emergency Manuals containing information about the following threats:
▪▪ Fire ▪▪ Crime ▪▪ Bomb ▪▪ Elevator Entrapment ▪▪ Severe Weather ▪▪ Hazardous Materials ▪▪ Snow/Ice ▪▪ Spill Containment ▪▪ Flood ▪▪ Bloodborne Pathogens ▪▪ Earthquake ▪▪ Hazard Communication (HAZCOM) ▪▪ Medical Emergency In addition, the firm’s Emergency Manuals include information about the property’s emergency systems, life safety equipment and organization of the property’s Emergency Response Team (ERT). The ERT is an integral part of a building’s life safety plan, and Transwestern devotes a considerable effort to the development of Emergency Manuals.
Section IV - Property Management 28 Section V - Financial Reporting and Budgeting
THE COMMONS AT WILLOWBROOK | Property Management and Leasing Services Proposal 29 THE COMMONS AT WILLOWBROOK | Property Management and Leasing Proposal
a Respondent’s ability to provide an operating and capital budget — budget format to be provided by L&B
See Apendix
b Information on respondent’s accounting system, including details of hardware and software and disaster recovery plan Transwestern’s information services environment is based on a Windows platform. The primary accounting software applications used by Transwestern are MRI and Yardi. MRI is housed on a Windows Server 2008 R2. MRI has two main processing databases. The databases are housed on a SQL Server 2008. Yardi is housed on a Windows Server 2008 R2 and has two main processing databases. The databases are housed on a SQL Server 2008 R2. Both the MRI and Yardi commercial accounting software were designed for real estate and as such, are able to manage the entire real estate lifecycle. MRI and Yardi allow users the ability to process transactions for accounts payable, accounts receivable and the general ledger. The systems include a full commercial management system that tracks lease information, rent rolls, recoveries and escalations. Other capabilities include a tool for forecasting, budgeting and projection, a job costing system and ability to prepare consolidations for portfolio accounting requirements. The ability to customize reports is also available that allows flexibility by clients who might require specialized reporting services.
c Sample reporting package — reporting package dictated by L&B (attached)
See Apendix
d Respondent's ability to comply with the accounting, financial control, leasing administration and reporting requirements as outlined in the management agreement (attached) Transwestern is able to comply with L&B Realty’s accounting, financial control, leasing administration and reporting requirements. See Transwestern’s SAS 70 Report (now known as SSAE16) in Appendix.
e Respondent's internal control environment for rent receipts and expense payments, and project cash management procedures Financial reviews are conducted by a quality assurance analyst to ensure that Transwestern’s systems and internal controls are in place and that procedures are performed appropriately. Areas where efficiencies, timeliness and security can be improved are identified. Objectives during each review include: accounting systems and operations, leases and security deposits, balance sheet and income statement and recovery schedule. We select 15-20 properties a year to undergo these detailed reviews and report findings to the properties reviewed as well as report an overall summary of findings annually to our property management teams.
f Respondent's experience with Yardi or comparable accounting systems and ability to convert the reporting function to yardi Transwestern is highly experienced with various software packages. As a company we host Yardi software on our servers. Our in-house Accounting Support team has a long, productive relationship with Yardi and provides us with quick and efficient resolution to any software issues. The Houston accounting team is knowledgeable and proficient in the use of Yardi whether our hosted software or logging into a client hosted software. Our property managers around the country also have vast experience in different accounting and budgeting software packages as required by our clients. Transwestern will work with RMR to train the property managers on ARGUS Enterprise to meet the budgeting and reforecasting requirements. We have experts in ARGUS within our regional offices around the country who can assist in supporting our team with any requirements needed of our Property Managers who will be directly managing the RMR portfolio.
G Respondent's accounting point of contact
Elton Cribbs, CPA – Senior Vice President/Controller
H Where accounting services will be performed
Transwestern’s Corporate Office - Houston, Texas
Section V - Financial Reporting and Budgeting 30 Section VI - Construction Management
THE COMMONS AT WILLOWBROOK | Property Management and Leasing Services Proposal 31 THE COMMONS AT WILLOWBROOK | Property Management and Leasing Proposal
a Resumes and organization of construction management staff
Robert Nguyen, Vice President Mark Johnson , Construction Manager Robert will be overseeing the full As Project Manager-Construction for Transwestern's retail management services delivery, Gulf Coast region, Mark is responsible for providing personnel and will lead all Construction project management for Tenant Advisory Services at the Commons at Willowbrook. and Property Management. He will support The Commons at Willowbrook and Robert Nguyen as needed.
b Responsibilites of construction management staff for construction plan review and management of tenant construction and property capital projects. Job cost threshold (if any), for construction management staff responsibility and management of construction jobs
Transwestern Construction Managers are responsible for assisting the Property Managers in pricing projects for budgeting and planning. Once a project is approved, our construction managers three bid the project and coordinate project meetings throughout project completion, focusing on quality, timeliness, adherence to plans, lien release and final punch lists PHASE 1: STRATEGY Transwestern performs due diligence, strategically consulting with your team on how best to spend your resources in order to maximize asset value and drive rental rates. PHASE 2: CONCEPT AND DESIGN Budgets are created and refined, and initial code compliance and environmental issues are addressed. We work with the architects and engineers to evaluate the viability of the design, ensuring value-added design that will ultimately attract tenants. PHASE 3: BID Transwestern manages the bid process, qualifying and choosing the right general contractor and vendors for the project. We perform a thorough cost analysis, recommending value engineering as required to stay within budget. PHASE 4: CONSTRUCTION Transwestern actively oversees the entire construction process, ensuring the sequence of the project is proceeding as planned. Liability, compliance, inspections and other legal aspects are closely monitored. Important considerations of building operations such as tenant and property management relations are also managed. PHASE 5: CONSTRUCTION SUPERVISION Transwestern team members will be on site to monitor construction progress, attend progress meetings, and assist in requests for information. Further, as project completion nears, punch lists and walk-throughs will be conducted to ensure all details are completed. PHASE 6: COMPLETION Construction wraps up with Transwestern following through with the contractors to ensure all punch list items are completed, invoices are submitted for final payments, lien releases are submitted accordingly, permitting is closed and close out documents are provided for record keeping. We will work with you through the lease-up phase to ensure the timely delivery of space to your tenants. JOB COST THRESHOLD Smaller tenant improvements will be handled by the property manager or engineer. Generally, tenant improvement projects exceeding 10,000 SF or $250,000 will be handled by the Transwestern construction manager. The property manager and engineer will lead all capital projects.
Section VI - Construction Management 32 THE COMMONS AT WILLOWBROOK | Property Management and Leasing Proposal
c Responsibilities of on-site management staff (if any) for construction plan review, coordination and management of tenant construction and property capital projects
The onsite property management team, along with the General Manager will coordinate, plan, budget and handle all administrative areas of onsite construction. If the project is a small tenant improvement or a typical capital item, the General Manager will take the lead on construction management. Otherwise, Robert Nguyen will lead construction projects for the Commons at Willowbrook.
The job is not done until each project is delivered, lien releases received, and projects are paid. We manage all construction projects until the project is closed out.
Section VI - Construction Management 33 THE COMMONS AT WILLOWBROOK | Property Management and Leasing Proposal
Retail Construction Management Experience
Copperfield village
In 2013, Transwestern Retail assisted CopperfieldV illage Investor to convert former Randall’s space into 3 junior anchor spaces; and provide construction management for 25,000 square feet Sprout’s Farmer Market, 23,500 square feet Goody Goody Liquor and 10,000 square feet Five Below. In addition Transwestern Retail managed over 15,000 square feet of in-line spaces for Tenants construction.
Cypresswood court
Transwestern Retail is currently providing construction management to LNR Partners, LLC at Cypresswood Court Shopping Center; Transwestern Retail built and delivered 22,500 square feet Staples, converted the former Blockbuster building into a Multi-Tenant building for Smashburger, Visionworks and Smoothie King. Transwestern also provided construction management for the followings tenants: Ulta Beauty, Kirklands and 15,000 square feet of small in-line spaces.
Section VI - Construction Management 34 THE COMMONS AT WILLOWBROOK | Property Management and Leasing Proposal
Marq-E Transwestern Retail assisted ORIX as the construction manager for the Marq-E Entertainment Center located in Houston, Texas. The development comprised of 630,000 SF of mixed used retail & entertainment. The center is anchored by Edwards IMAX 22 screens Cinemas. In addition, Transwestern Retail constructed an 8-story 1,400 parking spaces garage to make up for lost parking spaces due to I-10 expansion.
shadow creek town center
Transwestern Retail developed Shadow Creek Ranch Town Center located in Pearland, Texas. The development comprised of 529,000 SF retail space with unique blend of specialty soft good retailers, restaurants and service retail. The center is anchored by 150,615 square foot H-E-B Plus, six juniors anchors, 52 in-line tenants and 11 pad sites.
Section VI - Construction Management 35 THE COMMONS AT WILLOWBROOK | Property Management and Leasing Proposal
Spring Cypress Village
Transwestern Retail assisted Sun Life Assurance company to convert former Kroger grocery space into 2 junior anchor spaces; and provide construction management for approximately 28,000 square feet Sprout’s Farmer Market and 15,668 square feet Spec’s Liquor. In addition Transwestern Retail provided construction management for 10,000 square feet YES Fitness and 14,000 square feet of in-line spaces.
Atascocita
Transwestern Retail assisted Red Tail Acquisitions Company to converted former Palais Royal space into 2 junior anchor spaces; and provides construction management for approximately 21,893 square feet Aldi Grocery and 8,110 square feet FINS. In addition Transwestern Retail provided construction management for over 10,000 square feet of in-line spaces.
Section VI - Construction Management 36 THE COMMONS AT WILLOWBROOK | Property Management and Leasing Proposal
Representative Construction tenants
Section VI - Construction Management 37 Section VII - Leasing and Marketing
THE COMMONS AT WILLOWBROOK | Property Management and Leasing Services Proposal 38 THE COMMONS AT WILLOWBROOK | Property Management and Leasing Proposal
A Review of competitive properties in the competitive set and analysis of the strengths and weaknesses of the property in comparison to its competitive set.
1. Willowbrook Court 5. Willowchase Center ▪▪ Toys ‘R’ Us, Babies ‘R’ Us ▪▪ Jo-Ann Fabric, Fiesta, Family Dollar, Rooms To Go ▪▪ In-line: $20.00 - $24.00 PSF ▪▪ In-line: $25.00 - $28.00 PSF ▪▪ Box: N/A ▪▪ Box: $18.00 PSF ▪▪ NNN: $4.50 ▪▪ NNN: $ 4.25 ▪▪ GLA: 119,404 SF ▪▪ GLA: 224,440 SF 2. Champions Stonebridge 6. Willowbrook Shopping Center (100% Leased) ▪▪ Target ▪▪ Office Depot, REI, PetSmart, Ashley Furniture, Pier 1 ▪▪ In-line: $26.00 PSF Imports ▪▪ Box: $18.00 - $19.00 PSF ▪▪ In-line: N/A ▪▪ NNN: $6.52 ▪▪ Box: N/A ▪▪ GLA: 232,434 SF ▪▪ NNN: N/A 3. Champion Villages Shopping Center ▪▪ GLA: 186,965 ▪▪ Palais Royal, Stein Mart, Sun & Ski, Golf Smith, 7. Willowbrook Plaza Kirkland’s Home, Hallmark, Barnes & Noble, Randalls ▪▪ Five Below, Bel Furniture, World Market, Bed Bath & ▪▪ In-line: $18.00 - $29.00 PSF Beyond, Buy Buy Baby ▪▪ Box: $12.00 PSF ▪▪ In-line: $18.00 - $30.00 PSF ▪▪ NNN: $5.83 PSF ▪▪ Box: N/A ▪▪ GLA: 405,167 SF ▪▪ NNN: $5.00 4. Champion Forest Plaza ▪▪ GLA: 384,556 SF ▪▪ The Container Store, GAP, Victoria Secret, Talbots, 8. Willowbrook mall Sur La Table, Jos. A. Bank ▪▪ Nordstrom Rack, Macy’s, Sears, Dillard’s, JCPenney, ▪▪ In-line: $38.00 PSF H&M, Forever 21 ▪▪ Box: N/A ▪▪ GLA: 555,930 SF ▪▪ NNN: $6.75 PSF ▪▪ GLA: 91,046 SF
4 3
249 Champion Forest Dr
The Commons FM 1960 at Willowbrook 2
5 Willowbrook 1 8 6 Mall
7
Section VII - Leasing and Marketing 39 THE COMMONS AT WILLOWBROOK | Property Management and Leasing Proposal
Strengths: Opportunities: ▪▪ Caters to a trade area with a population of over 286,000 ▪▪ Only center in the trade area with an available 50,000+ people within a 3 mile radius SF box ▪▪ Offers great access to FM 1960 and Hwy 249 ▪▪ Upgrade the tenant mix as renewals come up if current ▪▪ Combined traffic count of over 180,000 vehicles per day tenant is underperforming ▪▪ Located directly across FM 1960 from Willowbrook ▪▪ Increase current tenants that are not paying market rate Mall, the #5 mall in sales per square foot in the greater upon renewal Houston metroplex ▪▪ Additional pad creation ▪▪ Anchored by strong mix of national tenants which drives ▪▪ Possible expansions and / or relocation for healthy a higher market rate in the small shop space tenants Weaknesses: Threats: ▪▪ Vacancies in the east portion of the center lack visibility ▪▪ Direct competition for in-line tenants in adjacent and access comparable centers such as Champions Village, ▪▪ Existing national tenants could cause exclusivity issues Willowbrook Plaza, and Willowchase Center ▪▪ Center’s look and feel is outdated as compared to the ▪▪ Willowchase (NWC of SH 249 & FM 1960) & competition in the market Willowbrook Plaza (SWC of SH 249 & FM 1960) were both was recently purchased and are being completely remodeled which will bring additional competition to the market
B Respondent’s market research capabilities
Market Analysis Marketing ▪▪ Demographic Studies – radius reports, polygon maps, ▪▪ Marketing Package heat maps ▪▪ Media Outlets – Transwestern website, email blasts to a ▪▪ Psychographic Studies – market visits, economic list of over 1,200 contacts, Loopnet, Costar, economic development development sites ▪▪ Market Void Opportunities – void analysis ▪▪ Industry Relationships – existing and new ▪▪ Competitive Environment – competition map, establish ▪▪ Conventions & Networking – ReCon Las Vegas, I CSC market rate, competing tenant interviews Texas, New York, Chicago and San Diego, Retail 101, WIRED, I CSC Site Analysis ▪▪ Houston, ICSC N ext Generation, CREW, O’Connor & ▪▪ Trade Area Location – trade area aerial, relative Associates, Chamber of Commerce positioning, ease of access ▪▪ Prospecting ▪▪ Physical Condition – site visit with property management, vacancy report Potential Revenue Analysis ▪▪ Signage – existing condition and opportunities ▪▪ New Leasing ▪▪ SWOT Analysis ▪▪ Renewal Increases Tenant Analysis ▪▪ Expansion Opportunities ▪▪ Pad Site Creation ▪▪ Tenant Profiles – category, operation, physical condition, collection status, sales volumes, existing ▪▪ Ancillary Income rights and options and lease expiration ▪▪ Redevelopment ▪▪ Tenant Upgrade Opportunity ▪▪ Target Tenants
Section VII - Leasing and Marketing 40 THE COMMONS AT WILLOWBROOK | Property Management and Leasing Proposal
C Summary of credit review services respondent will preform to evaluate
Company History Company Financial Review ▪▪ Years in Business ▪▪ Current and Three year Balance Sheets ▪▪ Number of Locations ▪▪ Current and Three Year Profit and Loss ▪▪ Financial Structure Statements ▪▪ Personal Location Visit ▪▪ Statement of Cash Flows ▪▪ Current Bank Statements Business Plan Personal Financial Review Operator and Management Bios ▪▪ Summary of Net Worth ▪▪ Current Bank Statements ▪▪ Credit Report
Section VII - Leasing and Marketing 41 THE COMMONS AT WILLOWBROOK | Property Management and Leasing Proposal
D Example of leasing and marketing reports currently used by respondent
Commons at Willowbrook 0 - No Interest Marketing Report 1 - Reviewing Site Last Updated: Friday, October 03, 2014 2 - Interested Prospect 3 - Final Review & Tour
Tenant Proposed Category Location Tenant P.O.C. Contact Info Comments Status SF
Restaurant - They are End Cap Artisan Pizza 3 CA 2,800 Fast Casual touring 10/06
John Smith Conference Retail Anchor Boots R Us 3 GW 20,000 - Smith Call schduled Brokerage for 10/08
LOI to Tenant Fitness In-line Cable Provider 3 CA 4,000 9/26
Toured site; Restaurant - Southwest End Cap 3 GW 3,400 awaiting Italian Grill financials
Awaiting committee Children’s Retail In-line 2 CA 6,000 response; Boutique Committee meets 10/22
Response to Retail In-line Dress Shop 2 GW 7,000 us by 10/15
Interested. Retail In-line Cell Phone 1 GW 1,200 Reviewing site.
Touring Retail In-line Juice Bar 1 CA 1,200 11/15/2014
Info sent 07/22; Touring Retail In-line Optical 1 CA 4,000 in a few weeks.
Section VII - Leasing and Marketing 42 THE COMMONS AT WILLOWBROOK | Property Management and Leasing Proposal
Leasing Report Renewal Renewal Rent Increase % Comments Com/ SF TA/ SF stimated Costs Costs E stimated TI/SF Rent/ SF Term New Rent Start Date If Vacating Move Out Date ACTION Current Current Forecast - Rent/ SF Current Current Foreca/ st - Term Current Current Forecast - New Rent Start Date AR over 30 Days As of
2011 Sales ANT C ES C A SPA V 2012 Sales % Due ease ease ease ease xpirations E xpirations xpirations E xpirations 2013 L 2014 L Breakpoint Breakpoint Next Next Opt Term Next Next Opt Amt PSF A R > $1,000 Next Next Opt Notice Date Next Next Incr PSF Next Next Incr Date ortfolio PSF Amt- Rent GLA exas Retail P Retail exas T Lease Lease End Date Unit AGENT P R OPOSED 2013 B U DGET AGENT S outhwest DBA DBA
Section VII - Leasing and Marketing 43 Leasing Budget COMMONS ATTHE WILLOWBROOK
**Exclusivity ***Co-tenancy Competitive Status *Renewal Shopping Center Owner Provisions Provisions Projects 1) Executed Lease 1) Grocery Anchor 2) Lease out for signature 2) Fashion Tenant Sample Transwestern 3) Negotiating LOI 3) Restaurant LEASE STATUS/ACTIVITY REPORT 4) In Discussion: Have met with Updated: XX/XX/XXXX 5) In Discussion: Have met with - Pads 6) Prospective Tenant - Package Sent |Property ManagementandLeasing Proposal 7) Prospective Tenant - Pads 8) No Interest ECONOMICS PROPOSED Tenant Status Tenant Category / Use S. F. Comments Point of Contact Date TA/SF $/SF 1st yr min rent % Rent Commencement Contact
FULLY EXECUTED
TOTAL SQUARE FEET EXECUTED: 0 PERCENTAGE OF TOTAL SF LEASED: 0% LEASES OUT FOR SIGNATURE
TOTAL SQUARE FEET AT LEASE: 0 PERCENTAGE OF TOTAL SF AT LEASE: 0% NEGOTIATING LETTER OF INTENT
TOTAL SQUARE FEET NEGOTIATED LOI: 0 Section PERCENTAGE OF TOTAL SF AT LOI: 0% IN DISCUSSION: HAVE MET WITH VII -Leasing TOTAL SQUARE FEET: 0 IN DISCUSSION: HAVE MET WITH - PADS
TOTAL SQUARE FEET: 0 and Marketing PROSPECTIVE TENANT - PACKAGE SENT
TOTAL SQUARE FEET OF PROSPECTS: 0 PROSPECTIVE TENANT - PADS
TOTAL SQUARE FEET OF PROSPECTS: 0 NO INTEREST 44 THE COMMONS AT WILLOWBROOK | Property Management and Leasing Proposal
E Method by which lease expirations, renewal options, refusal rights, rent increases and other tenant or lease clauses are monitored
Transwestern lease administration provides real estate portfolio management needs through customized lease administration service to meet our client’s needs. Lease administration is a core deliverable to manage and maintain our client’s lease portfolio and to be their single point of contact for day-to-day real property information. The Transwestern Team of professionals proactively manages the projects real estate portfolio. Transwestern works with industry leading lease administration software providers including MRI, YARDI, as well as AMT Direct and Lease Harbor. Transwestern assists in implementing the system that integrates accounting, legal and administrative information into one lease administration database. The Transwestern Property Managers are responsible, and they are assisted and verified by the assigned Project Accountant to ensure accuracy of the lease administration information and mitigate any potential risks. Each tenant lease is freshly briefed by Transwestern’s Property Management Manager, Admin Assistant; the lease brief is further reviewed and confirmed by the Project Accountant and approved by the Accounting Manager, and finally by the Supervising Property Manager. Transwestern lease administration manages tenant critical dates, tracks the transaction process and updates the portfolio as new documents are executed. We customize our processes to fit each client’s scope and align our procedures to their business objectives. Our depth of services is dictated by each client’s specific portfolio needs.
▪▪ Management of portfolio critical dates ▪▪ Designing customized online client portfolio ▪▪ Monthly reporting of pending critical dates ▪▪ Maintaining lease administration database ▪▪ Tracking notes on active transactions ▪▪ Tenant invoice review ▪▪ Reconciling lease expenses ▪▪ Subtenant billing ▪▪ Audit response of CAM/Operating Expenses ▪▪ Bill payment receipt ▪▪ Portfolio Ad Hoc reporting ▪▪ Hazard Communication (HAZCOM)
Section VII - Leasing and Marketing 45 Section VIII - Other Requirements
THE COMMONS AT WILLOWBROOK | Property Management and Leasing Services Proposal 46
X Crime - Primary X X X $5,000,000 $5,000,000 $100,000
Section IX - Fee Recomendation
THE COMMONS AT WILLOWBROOK | Property Management and Leasing Services Proposal 49 THE COMMONS AT WILLOWBROOK | Property Management and Leasing Proposal
MANAGEMENT FEE SCHEDULE COMPENSATION The following terms are proposed as pricing for services provided by Transwestern to L&B Realty Advisors, LLP for the Commons at Willowbrook in Houston, Texas. TERM The term of this agreement will be for one year; however, either party may terminate the agreement with thirty (30) days prior written notice. MANAGEMENT FEES The management fee payable to manager for its services shall be $9,350 per month, payable and actually collected for the month. STAFF REIMBURSEMENT
VP/Sr. Property Manager – Robert Nguyen, CSM $ 0 General Manager – LaTisha Staten $ 5,000
Asst. Property Manager – Kristy Willoughby (on site) $ 30,000 Admin. Assistant – Tobey Wilson $ 10,000 Engineer - TBD $ 10,000 Total Base Salary Reimbursement Estimate $ 55,000 Bonus Estimate $ 4,000 Salary Burden Estimate (28%) $ 16,520 Total Salary Reimbursement Estimate $ 75,520 ($.25/sf) Monthly Salary Reimbursement Estimate $ 6,293
Section IX - Fee Recomendation 50 THE COMMONS AT WILLOWBROOK | Property Management and Leasing Proposal
LEASING FEE Recommendation NEW LEASES
<15,000 SF >15,000 SF NO CO BROKER The greater of: The lesser of: 1. 4% of Minimum Base Rent 1. 4% of Minimum Base Rent throughout the Primary Term, not throughout the Primary Term, not to exceed 10 years to exceed 10 years 2. $4.00/SF 2. $3.00/SF 3. $3,500.00 CO-BROKER The greater of: The lesser of: 1. 6% of Minimum Base Rent 1. 6% of Minimum Base Rent throughout the Primary Term, not throughout the Primary Term, not to exceed 10 years to exceed 10 years 2. $6.00/SF 2. $4.50/SF 3. $3,500.00
RENEWALS, EXPANSIONS & RELOCATIONS with BROKER INVOLVEMENT
<15,000 SF >15,000 SF NO CO BROKER The greater of: The lesser of: 1. 4% of Minimum Base Rent 1. 4% of Minimum Base Rent throughout the Extended Term, throughout the Extended Term, not to exceed 10 years not to exceed 10 years 2. $2.00/SF 2. $1.50/SF 3. $2,500.00 CO-BROKER The greater of: The lesser of: 1. 4% of Minimum Base Rent 1. 4% of Minimum Base Rent throughout the Extended Term, throughout the Extended Term, not to exceed 10 years not to exceed 10 years 2. $3.00/SF 2. $2.00/SF 3. $3,500.00
Section IX - Fee Recomendation 51 Appendix
THE COMMONS AT WILLOWBROOK | Property Management and Leasing Services Proposal 52 THE COMMONS AT WILLOWBROOK | Property Management and Leasing Proposal section v. A
SAMPLE YARDI COMPARATIVE BUDGET
Appendix 53 THE COMMONS ATTHE WILLOWBROOK 207,960 207,960.00 207,960 Sq.Ft. Financial summary 09/24/2014 Financial Summary Detail Page 1 of 3
Account 2015 Budget 2014 Reforecast 2014 Budget 2013 Actuals Number Description Total PSF Total PSF Total PSF Total PSF 2012 Actuals 2011 Actuals 2010 Actuals
RENTAL INCOME 40175-0000 Base Rental Income 837,857 4.03 794,991 3.82 756,815 3.64 770,742 3.71 810,118 791,248 675,635 TOTAL RENTAL INCOME 837,857 4.03 794,991 3.82 756,815 3.64 770,742 3.71 810,118 791,248 675,635
RECOVERY INCOME |Property ManagementandLeasing Proposal 41105-0000 Recovery Income - CAM 120,151 0.58 126,621 0.61 130,699 0.63 131,255 0.63 175,721 117,721 98,245 41110-0000 Recovery Income - Insurance 22,810 0.11 33,187 0.16 33,685 0.16 35,324 0.17 32,442 24,489 27,580 41115-0000 Recovery Income - RE Tax 160,829 0.77 230,404 1.11 218,623 1.05 219,014 1.05 195,623 174,598 162,049 41130-0000 Recovery Income - Prior Year 0 0.00 -16,436 -0.08 0 0.00 7,721 0.04 2,981 0 1,123 TOTAL RECOVERY INCOME 303,790 1.46 373,776 1.80 383,007 1.84 393,314 1.89 406,767 316,808 288,997
OTHER INCOME 42144-0000 Termination/Cancellation Fees 0 0.00 2,610 0.01 0 0.00 18,272 0.09 0 0 0 42195-0000 Miscellaneous Income 0 0.00 0 0.00 0 0.00 0 0.00 0 0 1,132 TOTAL OTHER INCOME 0 0.00 2,610 0.01 0 0.00 18,272 0.09 0 0 1,132 TOTAL INCOME 1,141,647 5.49 1,171,377 5.63 1,139,822 5.48 1,182,328 5.69 1,216,885 1,108,057 965,764
TOTAL REVENUES 1,141,647 5.49 1,171,377 5.63 1,139,822 5.48 1,182,328 5.69 1,216,885 1,108,057 965,764 PROPERTY EXPENSES
BUILDING REPAIRS & 50110-0000 Electric R & M 1,221 0.01 1,946 0.01 2,400 0.01 1,808 0.01 1,622 1,680 5,299 50116-0000 Fire/Safety Equipment 0 0.00 271 0.00 0 0.00 0 0.00 0 0 0 50140-0000 Painting - Exterior 0 0.00 0 0.00 0 0.00 0 0.00 57,428 0 0 50146-0000 Pest Control/Extermination 2,598 0.01 2,605 0.01 2,616 0.01 2,598 0.01 2,598 2,598 2,598 50148-0000 Plumbing R & M 1,800 0.01 446 0.00 798 0.00 341 0.00 547 2,189 1,466 50150-0000 Roofing R & M 4,100 0.02 1,040 0.01 7,496 0.04 6,117 0.03 1,691 3,536 1,375 50195-0000 Miscellaneous R & M 1,500 0.01 567 0.00 1,400 0.01 0 0.00 663 1,182 295 TOTAL BUILDING REPAIRS & 11,219 0.05 6,875 0.03 14,710 0.07 10,865 0.05 64,548 11,185 11,033
COMMON AREA MAINTENANCE 52114-0000 Fire Protection 6,523 0.03 18,957 0.09 10,402 0.05 9,413 0.05 9,555 5,023 12,068 52120-0000 Landscape Exterior - Contract 11,919 0.06 12,951 0.06 13,015 0.06 14,509 0.07 11,919 12,506 12,730 52122-0000 Landscape Exterior - Supplies 4,825 0.02 4,785 0.02 4,336 0.02 4,956 0.02 7,061 8,722 4,221 52132-0000 Non-Billable CAM 2,750 0.01 2,221 0.01 600 0.00 180 0.00 0 130 2,416 52136-0000 Management Office Expenses 0 0.00 0 0.00 0 0.00 13 0.00 0 0 0 Appendix 52144-0000 Parking Lot Maintenance 1,050 0.01 1,222 0.01 5,722 0.03 5,194 0.02 2,945 2,980 1,859 52146-0000 Parking Lot Sweeping 3,840 0.02 2,998 0.01 3,700 0.02 2,884 0.01 2,698 2,654 2,887 52150-0000 Security Patrol/Courtesy Officer 0 0.00 0 0.00 0 0.00 0 0.00 0 1,775 2,994 52195-0000 Miscellaneous CAM 0 0.00 0 0.00 0 0.00 0 0.00 0 0 267 TOTAL COMMON AREA 30,906 0.15 43,134 0.21 37,775 0.18 37,148 0.18 34,178 33,790 39,441 54 THE COMMONS ATTHE WILLOWBROOK 207,960 207,960.00 207,960 Sq.Ft. Financial summary 09/24/2014 Financial Summary Detail Page 2 of 3
Account 2015 Budget 2014 Reforecast 2014 Budget 2013 Actuals Number Description Total PSF Total PSF Total PSF Total PSF 2012 Actuals 2011 Actuals 2010 Actuals
UTILITIES 53104-0000 Electric - Common 13,126 0.06 14,803 0.07 16,651 0.08 11,999 0.06 10,826 12,615 14,240 53106-0000 Electric - Vacancy or Corporates 0 0.00 0 0.00 0 0.00 0 0.00 0 201 2,085 53114-0000 Gas & Fuel - Common 250 0.00 317 0.00 413 0.00 242 0.00 215 227 219 53130-0000 Water/Sewer 26,087 0.13 25,663 0.12 27,576 0.13 31,700 0.15 29,141 27,834 13,935 |Property ManagementandLeasing Proposal TOTAL UTILITIES 39,463 0.19 40,783 0.20 44,640 0.21 43,941 0.21 40,183 40,876 30,479
PROPERTY MANAGEMENT FEES 55105-0000 Property Management Fees 34,073 0.16 36,671 0.18 35,877 0.17 35,321 0.17 36,400 34,771 30,898 TOTAL PROPERTY 34,073 0.16 36,671 0.18 35,877 0.17 35,321 0.17 36,400 34,771 30,898
INSURANCE 56105-0000 Property Casualty Insurance 32,371 0.16 33,141 0.16 35,325 0.17 35,324 0.17 32,442 24,201 29,815 TOTAL INSURANCE 32,371 0.16 33,141 0.16 35,325 0.17 35,324 0.17 32,442 24,201 29,815
REAL ESTATE TAXES 57105-0000 Property Taxes 235,434 1.13 230,402 1.11 230,404 1.11 210,489 1.01 188,127 166,197 165,394 57115-0000 Taxes, Licenses & Other 0 0.00 0 0.00 0 0.00 8,525 0.04 7,496 7,007 6,984 57120-0000 Tax Consulting Fee 0 0.00 0 0.00 0 0.00 0 0.00 0 0 1,484 TOTAL REAL ESTATE TAXES 235,434 1.13 230,402 1.11 230,404 1.11 219,014 1.05 195,623 173,204 173,862
MARKETING EXPENSES 58105-0000 Advertising Expense 1,700 0.01 100 0.00 1,200 0.01 271 0.00 246 277 179 TOTAL MARKETING 1,700 0.01 100 0.00 1,200 0.01 271 0.00 246 277 179
ADMINISTRATIVE EXPENSES 59102-0000 Appraisal Fees 0 0.00 0 0.00 0 0.00 4,000 0.02 0 0 2,900 59104-0000 Audit/Accounting Fees 4,119 0.02 4,119 0.02 0 0.00 4,857 0.02 4,750 4,821 4,464 59116-0000 Legal Fees 0 0.00 0 0.00 0 0.00 0 0.00 590 523 990 59118-0000 Professional & Consulting Fees 1,500 0.01 1,128 0.01 1,000 0.00 38 0.00 0 0 0 59120-0000 Tax Prep Fees 3,000 0.01 0 0.00 2,500 0.01 4,000 0.02 0 2,500 0 59195-0000 Miscellaneous General & 805 0.00 978 0.00 1,782 0.01 169 0.00 413 659 873 TOTAL ADMINISTRATIVE 9,424 0.05 6,224 0.03 5,282 0.03 13,065 0.06 5,753 8,503 9,227
TOTAL PROPERTY EXPENSES 394,590 1.90 397,331 1.91 405,213 1.95 394,947 1.90 409,373 326,807 324,933 Appendix
PROPERTY NET OPERATING 747,057 3.59 774,047 3.72 734,609 3.53 787,381 3.79 807,512 781,249 640,831
ADJUSTMENTS
REAL ESTATE INVESTMENTS 55 14135-0000 Building Improvements 0 0.00 0 0.00 0 0.00 0 0.00 0 0 0 THE COMMONS ATTHE WILLOWBROOK |Property ManagementandLeasing Proposal
207,960 207,960.00 207,960 Sq.Ft. Financial summary 09/24/2014 Financial Summary Detail Page 3 of 3
Account 2015 Budget 2014 Reforecast 2014 Budget 2013 Actuals Number Description Total PSF Total PSF Total PSF Total PSF 2012 Actuals 2011 Actuals 2010 Actuals 14140-0000 Tenant Improvements - New 0 0.00 0 0.00 -18,180 -0.09 0 0.00 0 -1,741 -22,717 14140-1000 Tenant Improvements - Renewal -32,580 -0.16 0 0.00 0 0.00 0 0.00 0 0 0 14140-5000 CM Fee - Tenant Improvements -1,629 -0.01 0 0.00 0 0.00 0 0.00 0 0 0 14150-0000 Deferred Leasing Costs - New 0 0.00 -39,659 -0.19 -33,313 -0.16 0 0.00 0 0 -35,859 14150-1000 Deferred Leasing Costs - Renewal -89,139 -0.43 -148 0.00 0 0.00 -267,563 -1.29 0 0 0 TOTAL REAL ESTATE -123,348 -0.59 -39,807 -0.19 -51,493 -0.25 -267,563 -1.29 0 -1,741 -58,575
TOTAL ADJUSTMENTS -123,348 -0.59 -39,807 -0.19 -51,493 -0.25 -267,563 -1.29 0 -1,741 -58,575
CASH FLOW 623,709 3.00 734,240 3.53 683,116 3.28 519,817 2.50 807,512 779,509 582,255 Appendix 56 THE COMMONS ATTHE WILLOWBROOK 146,340 146,340.00 146,340 Sq.Ft. Financial summary 09/24/2014 Financial Summary Detail Page 1 of 3
Account 2015 Budget 2014 Reforecast 2014 Budget 2013 Actuals Number Description Total PSF Total PSF Total PSF Total PSF 2012 Actuals 2011 Actuals 2010 Actuals
RENTAL INCOME 40175-0000 Base Rental Income 613,165 4.19 547,312 3.74 547,312 3.74 531,212 3.63 571,891 562,992 554,437 TOTAL RENTAL INCOME 613,165 4.19 547,312 3.74 547,312 3.74 531,212 3.63 571,891 562,992 554,437
RECOVERY INCOME |Property ManagementandLeasing Proposal 41105-0000 Recovery Income - CAM 55,546 0.38 89,924 0.61 96,231 0.66 92,360 0.63 123,654 82,286 74,562 41110-0000 Recovery Income - Insurance 16,029 0.11 23,544 0.16 24,858 0.17 24,857 0.17 22,829 17,030 20,982 41115-0000 Recovery Income - RE Tax 116,583 0.80 162,131 1.11 162,134 1.11 154,119 1.05 136,132 120,455 123,060 41130-0000 Recovery Income - Prior Year 0 0.00 -10,162 -0.07 0 0.00 5,433 0.04 3,525 1 869 TOTAL RECOVERY INCOME 188,159 1.29 265,437 1.81 283,223 1.94 276,769 1.89 286,140 219,772 219,473
OTHER INCOME 42195-0000 Miscellaneous Income 0 0.00 0 0.00 0 0.00 0 0.00 0 0 0 TOTAL OTHER INCOME 0 0.00 0 0.00 0 0.00 0 0.00 0 0 0 TOTAL INCOME 801,324 5.48 812,749 5.55 830,535 5.68 807,981 5.52 858,031 782,764 773,910
TOTAL REVENUES 801,324 5.48 812,749 5.55 830,535 5.68 807,981 5.52 858,031 782,764 773,910 PROPERTY EXPENSES
BUILDING REPAIRS & 50110-0000 Electric R & M 1,000 0.01 1,125 0.01 1,200 0.01 1,273 0.01 1,194 1,182 2,279 50116-0000 Fire/Safety Equipment 0 0.00 190 0.00 0 0.00 0 0.00 0 0 0 50140-0000 Painting - Exterior 0 0.00 0 0.00 0 0.00 0 0.00 40,412 0 0 50146-0000 Pest Control/Extermination 1,429 0.01 1,433 0.01 1,440 0.01 1,497 0.01 1,191 1,407 1,562 50148-0000 Plumbing R & M 900 0.01 165 0.00 396 0.00 240 0.00 385 114 1,005 50150-0000 Roofing R & M 2,050 0.01 520 0.00 4,248 0.03 3,859 0.03 1,190 2,141 967 50195-0000 Miscellaneous R & M 750 0.01 327 0.00 700 0.00 0 0.00 466 662 112 TOTAL BUILDING REPAIRS & 6,129 0.04 3,761 0.03 7,984 0.05 6,869 0.05 44,838 5,507 5,925
COMMON AREA MAINTENANCE 52114-0000 Fire Protection 4,030 0.03 11,592 0.08 6,798 0.05 5,716 0.04 7,258 3,582 9,224 52120-0000 Landscape Exterior - Contract 8,387 0.06 9,121 0.06 9,175 0.06 10,210 0.07 8,387 8,800 9,272 52122-0000 Landscape Exterior - Supplies 3,395 0.02 3,367 0.02 3,050 0.02 3,487 0.02 4,919 5,880 2,970 52132-0000 Non-Billable CAM 750 0.01 150 0.00 300 0.00 62 0.00 0 92 38
Appendix 52136-0000 Management Office Expenses 0 0.00 0 0.00 0 0.00 11 0.00 0 0 0 52144-0000 Parking Lot Maintenance 1,050 0.01 362 0.00 1,899 0.01 3,655 0.02 1,029 2,059 1,022 52146-0000 Parking Lot Sweeping 2,702 0.02 1,933 0.01 2,440 0.02 2,101 0.01 1,898 1,868 2,032 52150-0000 Security Patrol/Courtesy Officer 0 0.00 0 0.00 0 0.00 0 0.00 0 1,153 2,077 52195-0000 Miscellaneous CAM 0 0.00 0 0.00 0 0.00 0 0.00 0 0 188 20,315 0.14 26,524 0.18 23,662 0.16 25,241 0.17 23,491 23,435 26,823
57 TOTAL COMMON AREA THE COMMONS ATTHE WILLOWBROOK 146,340 146,340.00 146,340 Sq.Ft. Financial summary 09/24/2014 Financial Summary Detail Page 2 of 3
Account 2015 Budget 2014 Reforecast 2014 Budget 2013 Actuals Number Description Total PSF Total PSF Total PSF Total PSF 2012 Actuals 2011 Actuals 2010 Actuals UTILITIES 53104-0000 Electric - Common 3,858 0.03 5,730 0.04 8,760 0.06 6,321 0.04 6,563 5,226 6,256 53106-0000 Electric - Vacancy or Corporates 0 0.00 0 0.00 0 0.00 0 0.00 0 0 0 53114-0000 Gas & Fuel - Common 0 0.00 85 0.00 204 0.00 0 0.00 19 0 0 53130-0000 Water/Sewer 22,667 0.15 20,339 0.14 19,404 0.13 26,776 0.18 19,236 19,951 11,923 |Property ManagementandLeasing Proposal TOTAL UTILITIES 26,525 0.18 26,154 0.18 28,368 0.19 33,097 0.23 25,817 25,177 18,179
PROPERTY MANAGEMENT FEES 55105-0000 Property Management Fees 24,040 0.16 25,328 0.17 25,967 0.18 24,920 0.17 25,665 24,511 23,184 TOTAL PROPERTY 24,040 0.16 25,328 0.17 25,967 0.18 24,920 0.17 25,665 24,511 23,184
INSURANCE 56105-0000 Property Casualty Insurance 22,779 0.16 23,321 0.16 24,858 0.17 24,855 0.17 22,829 17,186 20,921 TOTAL INSURANCE 22,779 0.16 23,321 0.16 24,858 0.17 24,855 0.17 22,829 17,186 20,921
REAL ESTATE TAXES 57105-0000 Property Taxes 165,673 1.13 162,134 1.11 162,135 1.11 148,121 1.01 132,384 116,812 116,423 57115-0000 Taxes, Licenses & Other 0 0.00 0 0.00 0 0.00 4,263 0.03 3,748 3,504 3,492 57120-0000 Tax Consulting Fee 0 0.00 0 0.00 0 0.00 0 0.00 0 0 1,044 TOTAL REAL ESTATE TAXES 165,673 1.13 162,134 1.11 162,135 1.11 152,383 1.04 136,132 120,316 120,959
MARKETING EXPENSES 58105-0000 Advertising Expense 700 0.00 50 0.00 600 0.00 271 0.00 173 184 126 TOTAL MARKETING 700 0.00 50 0.00 600 0.00 271 0.00 173 184 126
ADMINISTRATIVE EXPENSES 59102-0000 Appraisal Fees 0 0.00 0 0.00 0 0.00 2,000 0.01 0 0 2,030 59104-0000 Audit/Accounting Fees 2,083 0.01 2,083 0.01 0 0.00 2,429 0.02 2,375 2,411 2,232 59116-0000 Legal Fees 0 0.00 0 0.00 0 0.00 0 0.00 0 0 990 59118-0000 Professional & Consulting Fees 750 0.01 -688 0.00 500 0.00 27 0.00 0 0 0 59120-0000 Tax Prep Fees 2,111 0.01 0 0.00 1,759 0.01 2,815 0.02 0 1,759 0 59195-0000 Miscellaneous General & 566 0.00 679 0.00 1,272 0.01 119 0.00 273 464 619 TOTAL ADMINISTRATIVE 5,510 0.04 2,074 0.01 3,531 0.02 7,389 0.05 2,648 4,634 5,871
TOTAL PROPERTY EXPENSES 271,671 1.86 269,346 1.84 277,105 1.89 275,024 1.88 281,593 220,949 221,987 Appendix PROPERTY NET OPERATING 529,653 3.62 543,403 3.71 553,430 3.78 532,957 3.64 576,438 561,814 551,923
ADJUSTMENTS
REAL ESTATE INVESTMENTS
58 14135-0000 Building Improvements 0 0.00 0 0.00 0 0.00 0 0.00 0 0 0 14140-0000 Tenant Improvements - New 0 0.00 0 0.00 0 0.00 0 0.00 0 0 0 THE COMMONS ATTHE WILLOWBROOK |Property ManagementandLeasing Proposal
146,340 146,340.00 146,340 Sq.Ft. Financial summary 09/24/2014 Financial Summary Detail Page 3 of 3
Account 2015 Budget 2014 Reforecast 2014 Budget 2013 Actuals Number Description Total PSF Total PSF Total PSF Total PSF 2012 Actuals 2011 Actuals 2010 Actuals 14150-0000 Deferred Leasing Costs - New 0 0.00 -1,348 -0.01 0 0.00 0 0.00 0 0 0 14150-1000 Deferred Leasing Costs - Renewal 0 0.00 -148 0.00 0 0.00 -267,563 -1.83 0 0 0 TOTAL REAL ESTATE 0 0.00 -1,495 -0.01 0 0.00 -267,563 -1.83 0 0 0
TOTAL ADJUSTMENTS 0 0.00 -1,495 -0.01 0 0.00 -267,563 -1.83 0 0 0
CASH FLOW 529,653 3.62 541,908 3.70 553,430 3.78 265,394 1.81 576,438 561,814 551,923 Appendix 59 THE COMMONS ATTHE WILLOWBROOK 61,620 61,620.00 61,620 Sq.Ft. Financial summary 09/24/2014 Financial Summary Detail Page 1 of 3
Account 2015 Budget 2014 Reforecast 2014 Budget 2013 Actuals Number Description Total PSF Total PSF Total PSF Total PSF 2012 Actuals 2011 Actuals 2010 Actuals
RENTAL INCOME 40175-0000 Base Rental Income 224,692 3.65 247,679 4.02 209,503 3.40 239,530 3.89 238,226 228,257 121,198 TOTAL RENTAL INCOME 224,692 3.65 247,679 4.02 209,503 3.40 239,530 3.89 238,226 228,257 121,198
RECOVERY INCOME |Property ManagementandLeasing Proposal 41105-0000 Recovery Income - CAM 64,605 1.05 36,697 0.60 34,468 0.56 38,894 0.63 52,068 35,435 23,683 41110-0000 Recovery Income - Insurance 6,781 0.11 9,643 0.16 8,827 0.14 10,467 0.17 9,613 7,459 6,598 41115-0000 Recovery Income - RE Tax 44,246 0.72 68,273 1.11 56,489 0.92 64,895 1.05 59,491 54,143 38,988 41130-0000 Recovery Income - Prior Year 0 0.00 -6,274 -0.10 0 0.00 2,288 0.04 -544 -1 254 TOTAL RECOVERY INCOME 115,631 1.88 108,339 1.76 99,784 1.62 116,544 1.89 120,627 97,036 69,523
OTHER INCOME 42144-0000 Termination/Cancellation Fees 0 0.00 2,610 0.04 0 0.00 18,272 0.30 0 0 0 42195-0000 Miscellaneous Income 0 0.00 0 0.00 0 0.00 0 0.00 0 0 1,132 TOTAL OTHER INCOME 0 0.00 2,610 0.04 0 0.00 18,272 0.30 0 0 1,132 TOTAL INCOME 340,323 5.52 358,628 5.82 309,287 5.02 374,346 6.08 358,854 325,293 191,853
TOTAL REVENUES 340,323 5.52 358,628 5.82 309,287 5.02 374,346 6.08 358,854 325,293 191,853 PROPERTY EXPENSES
BUILDING REPAIRS & 50110-0000 Electric R & M 221 0.00 821 0.01 1,200 0.02 536 0.01 427 498 3,021 50116-0000 Fire/Safety Equipment 0 0.00 80 0.00 0 0.00 0 0.00 0 0 0 50140-0000 Painting - Exterior 0 0.00 0 0.00 0 0.00 0 0.00 17,016 0 0 50146-0000 Pest Control/Extermination 1,169 0.02 1,172 0.02 1,176 0.02 1,100 0.02 1,407 1,191 1,036 50148-0000 Plumbing R & M 900 0.01 281 0.00 402 0.01 101 0.00 162 2,075 461 50150-0000 Roofing R & M 2,050 0.03 520 0.01 3,248 0.05 2,258 0.04 501 1,394 407 50195-0000 Miscellaneous R & M 750 0.01 239 0.00 700 0.01 0 0.00 196 521 183 TOTAL BUILDING REPAIRS & 5,090 0.08 3,114 0.05 6,726 0.11 3,996 0.06 19,710 5,678 5,108
COMMON AREA MAINTENANCE 52114-0000 Fire Protection 2,493 0.04 7,365 0.12 3,604 0.06 3,698 0.06 2,297 1,440 2,844 52120-0000 Landscape Exterior - Contract 3,532 0.06 3,831 0.06 3,840 0.06 4,299 0.07 3,532 3,706 3,458 52122-0000 Landscape Exterior - Supplies 1,430 0.02 1,418 0.02 1,286 0.02 1,468 0.02 2,142 2,841 1,251
Appendix 52132-0000 Non-Billable CAM 2,000 0.03 2,071 0.03 300 0.00 118 0.00 0 38 2,378 52136-0000 Management Office Expenses 0 0.00 0 0.00 0 0.00 2 0.00 0 0 0 52144-0000 Parking Lot Maintenance 0 0.00 860 0.01 3,823 0.06 1,539 0.02 1,916 921 836 52146-0000 Parking Lot Sweeping 1,138 0.02 1,066 0.02 1,260 0.02 783 0.01 799 787 855 52150-0000 Security Patrol/Courtesy Officer 0 0.00 0 0.00 0 0.00 0 0.00 0 622 917 52195-0000 Miscellaneous CAM 0 0.00 0 0.00 0 0.00 0 0.00 0 0 79 60 TOTAL COMMON AREA 10,592 0.17 16,610 0.27 14,113 0.23 11,907 0.19 10,687 10,355 12,617 THE COMMONS ATTHE WILLOWBROOK 61,620 61,620.00 61,620 Sq.Ft. Financial summary 09/24/2014 Financial Summary Detail Page 2 of 3
Account 2015 Budget 2014 Reforecast 2014 Budget 2013 Actuals Number Description Total PSF Total PSF Total PSF Total PSF 2012 Actuals 2011 Actuals 2010 Actuals
UTILITIES 53104-0000 Electric - Common 9,268 0.15 9,073 0.15 7,891 0.13 5,678 0.09 4,264 7,389 7,984 53106-0000 Electric - Vacancy or Corporates 0 0.00 0 0.00 0 0.00 0 0.00 0 201 2,085 53114-0000 Gas & Fuel - Common 250 0.00 232 0.00 209 0.00 242 0.00 197 227 219 |Property ManagementandLeasing Proposal 53130-0000 Water/Sewer 3,420 0.06 5,324 0.09 8,172 0.13 4,924 0.08 9,905 7,882 2,012 TOTAL UTILITIES 12,938 0.21 14,629 0.24 16,272 0.26 10,844 0.18 14,365 15,699 12,300
PROPERTY MANAGEMENT FEES 55105-0000 Property Management Fees 10,033 0.16 11,343 0.18 9,909 0.16 10,401 0.17 10,735 10,260 7,714 TOTAL PROPERTY 10,033 0.16 11,343 0.18 9,909 0.16 10,401 0.17 10,735 10,260 7,714
INSURANCE 56105-0000 Property Casualty Insurance 9,591 0.16 9,820 0.16 10,467 0.17 10,469 0.17 9,613 7,015 8,894 TOTAL INSURANCE 9,591 0.16 9,820 0.16 10,467 0.17 10,469 0.17 9,613 7,015 8,894
REAL ESTATE TAXES 57105-0000 Property Taxes 69,761 1.13 68,268 1.11 68,269 1.11 62,368 1.01 55,743 49,384 48,971 57115-0000 Taxes, Licenses & Other 0 0.00 0 0.00 0 0.00 4,263 0.07 3,748 3,504 3,492 57120-0000 Tax Consulting Fee 0 0.00 0 0.00 0 0.00 0 0.00 0 0 440 TOTAL REAL ESTATE TAXES 69,761 1.13 68,268 1.11 68,269 1.11 66,630 1.08 59,491 52,888 52,903
MARKETING EXPENSES 58105-0000 Advertising Expense 1,000 0.02 50 0.00 600 0.01 0 0.00 73 93 53 TOTAL MARKETING 1,000 0.02 50 0.00 600 0.01 0 0.00 73 93 53
ADMINISTRATIVE EXPENSES 59102-0000 Appraisal Fees 0 0.00 0 0.00 0 0.00 2,000 0.03 0 0 870 59104-0000 Audit/Accounting Fees 2,036 0.03 2,036 0.03 0 0.00 2,429 0.04 2,375 2,411 2,232 59116-0000 Legal Fees 0 0.00 0 0.00 0 0.00 0 0.00 590 523 0 59118-0000 Professional & Consulting Fees 750 0.01 1,815 0.03 500 0.01 11 0.00 0 0 0 59120-0000 Tax Prep Fees 889 0.01 0 0.00 741 0.01 1,185 0.02 0 741 0 59195-0000 Miscellaneous General & 239 0.00 299 0.00 510 0.01 50 0.00 140 195 255 TOTAL ADMINISTRATIVE 3,913 0.06 4,150 0.07 1,751 0.03 5,675 0.09 3,105 3,869 3,357
Appendix TOTAL PROPERTY EXPENSES 122,919 1.99 127,984 2.08 128,107 2.08 119,923 1.95 127,779 105,858 102,946
PROPERTY NET OPERATING 217,404 3.53 230,644 3.74 181,180 2.94 254,423 4.13 231,075 219,435 88,907
ADJUSTMENTS 61 REAL ESTATE INVESTMENTS 14135-0000 Building Improvements 0 0.00 0 0.00 0 0.00 0 0.00 0 0 0 THE COMMONS ATTHE WILLOWBROOK |Property ManagementandLeasing Proposal
61,620 61,620.00 61,620 Sq.Ft. Financial summary 09/24/2014 Financial Summary Detail Page 3 of 3
Account 2015 Budget 2014 Reforecast 2014 Budget 2013 Actuals Number Description Total PSF Total PSF Total PSF Total PSF 2012 Actuals 2011 Actuals 2010 Actuals 14140-0000 Tenant Improvements - New 0 0.00 0 0.00 -18,180 -0.30 0 0.00 0 -1,741 -22,717 14140-1000 Tenant Improvements - Renewal -32,580 -0.53 0 0.00 0 0.00 0 0.00 0 0 0 14140-5000 CM Fee - Tenant Improvements -1,629 -0.03 0 0.00 0 0.00 0 0.00 0 0 0 14150-0000 Deferred Leasing Costs - New 0 0.00 -38,312 -0.62 -33,313 -0.54 0 0.00 0 0 -35,859 14150-1000 Deferred Leasing Costs - Renewal -89,139 -1.45 0 0.00 0 0.00 0 0.00 0 0 0 TOTAL REAL ESTATE -123,348 -2.00 -38,312 -0.62 -51,493 -0.84 0 0.00 0 -1,741 -58,575
TOTAL ADJUSTMENTS -123,348 -2.00 -38,312 -0.62 -51,493 -0.84 0 0.00 0 -1,741 -58,575
CASH FLOW 94,056 1.53 192,332 3.12 129,687 2.10 254,423 4.13 231,075 217,694 30,332 Appendix 62 THE COMMONS AT WILLOWBROOK | Property Management and Leasing Proposal OCCUPANCY
Appendix 63 THE COMMONS AT WILLOWBROOK | Property Management and Leasing Proposal
Page 1 of 1
Stacking Plan - Occupancy Date: 9/24/2014 Name imf00901 - Building 1 City Houston TX Number of Units 1 Total Area 146,340 Building clay d1
Floor Area Tenants 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
1 146,340 Suite 100 - Interceramic, Inc. (146,340Sf at $4.08) - 1/31/2019 Industrial
Vacant M to M 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 >2023
Area Expiring 0 0 0 0 0 0 0 146,340 0 0 0 0 0 % Expiring 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 100.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Rent Roll Suite Tenant Area Lease Exp Rent/SF 100 Tenant A 146,340 1/31/2019 $4.08
https://www.yardiasp.com/36349taassociates/reports/Comm_Stacking_Expiring_Space.as... 9/24/2014
Appendix 64 THE COMMONS AT WILLOWBROOK | Property Management and Leasing Proposal
Page 1 of 1
Stacking Plan - Occupancy Date: 9/24/2014 Name imf00902 - Building 2 City Houston TX Number of Units 2 Total Area 61,620 Building P2
Floor Area Tenants 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
1 61,620 Suite 100 - Tenant A (43,440Sf at $3.96) - 6/30/2015 Suite 190 - CWP Asset Corp. (18,180Sf at $4.68) - 2/28/2019 Industrial Industrial
Vacant M to M 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 >2023
Area Expiring 0 0 0 43,440 0 0 0 18,180 0 0 0 0 0 % Expiring 0.00% 0.00% 0.00% 70.50% 0.00% 0.00% 0.00% 29.50% 0.00% 0.00% 0.00% 0.00% 0.00%
Rent Roll Suite Area Lease Exp Rent/SF 100 Tenant A 43,440 6/30/2015 $3.96 190 Tenant B. 18,180 2/28/2019 $4.68
https://www.yardiasp.com/36349taassociates/reports/Comm_Stacking_Expiring_Space.as... 9/24/2014
Appendix 65 THE COMMONS ATTHE WILLOWBROOK |Property ManagementandLeasing Proposal
Occupancy 09/24/2014 2015 Occupancy Summary Page 1 of 1
Suite Tenant Comm Exp RSF 01/15 02/15 03/15 04/15 05/15 06/15 07/15 08/15 09/15 10/15 11/15 12/15 Average
100 Tenant A 12/1/13 1/31/19 146,340 146,340 146,340 146,340 146,340 146,340 146,340 146,340 146,340 146,340 146,340 146,340 146,340 146,340 100 Tenant A 4/1/14 6/30/15 43,440 43,440 43,440 43,440 43,440 43,440 43,440 0 0 0 0 0 0 21,720 100 Tenant A 7/1/15 12/31/15 43,440 0 0 0 0 0 0 43,440 43,440 43,440 43,440 43,440 43,440 21,720 190 Tenant B 2/1/14 2/28/19 18,180 18,180 18,180 18,180 18,180 18,180 18,180 18,180 18,180 18,180 18,180 18,180 18,180 18,180 IMRF Buildings 1 - 2 Summary 207,960 Occupied RSF: 207,960 207,960 207,960 207,960 207,960 207,960 207,960 207,960 207,960 207,960 207,960 207,960 207,960 Total RSF - Calculated: 207,960 207,960 207,960 207,960 207,960 207,960 207,960 207,960 207,960 207,960 207,960 207,960 - Actual: 207,960 207,960 207,960 207,960 207,960 207,960 207,960 207,960 207,960 207,960 207,960 207,960 207,960 % Occupied: 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
% Vacant: 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Appendix 66 THE COMMONS ATTHE WILLOWBROOK |Property ManagementandLeasing Proposal
Occupancy 09/24/2014 2015 Occupancy Summary Page 1 of 1
Suite Tenant Comm Exp RSF 01/15 02/15 03/15 04/15 05/15 06/15 07/15 08/15 09/15 10/15 11/15 12/15 Average
100 Tenant A 12/1/13 1/31/19 146,340 146,340 146,340 146,340 146,340 146,340 146,340 146,340 146,340 146,340 146,340 146,340 146,340 146,340 IMRF Building 1 Summary 146,340 Occupied RSF: 146,340 146,340 146,340 146,340 146,340 146,340 146,340 146,340 146,340 146,340 146,340 146,340 146,340 Total RSF - Calculated: 146,340 146,340 146,340 146,340 146,340 146,340 146,340 146,340 146,340 146,340 146,340 146,340 - Actual: 146,340 146,340 146,340 146,340 146,340 146,340 146,340 146,340 146,340 146,340 146,340 146,340 146,340 % Occupied: 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
% Vacant: 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Appendix 67 THE COMMONS ATTHE WILLOWBROOK |Property ManagementandLeasing Proposal
Occupancy 09/24/2014 2015 Occupancy Summary Page 1 of 1
Suite Tenant Comm Exp RSF 01/15 02/15 03/15 04/15 05/15 06/15 07/15 08/15 09/15 10/15 11/15 12/15 Average
100 Tenant A 4/1/14 6/30/15 43,440 43,440 43,440 43,440 43,440 43,440 43,440 0 0 0 0 0 0 21,720 100 Tenant A 7/1/15 12/31/15 43,440 0 0 0 0 0 0 43,440 43,440 43,440 43,440 43,440 43,440 21,720 190 Tenant B 2/1/14 2/28/19 18,180 18,180 18,180 18,180 18,180 18,180 18,180 18,180 18,180 18,180 18,180 18,180 18,180 18,180 IMRF Building 2 Summary 61,620 Occupied RSF: 61,620 61,620 61,620 61,620 61,620 61,620 61,620 61,620 61,620 61,620 61,620 61,620 61,620 Total RSF - Calculated: 61,620 61,620 61,620 61,620 61,620 61,620 61,620 61,620 61,620 61,620 61,620 61,620 - Actual: 61,620 61,620 61,620 61,620 61,620 61,620 61,620 61,620 61,620 61,620 61,620 61,620 61,620 % Occupied: 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
% Vacant: 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Appendix 68 THE COMMONS ATTHE WILLOWBROOK |Property ManagementandLeasing Proposal
Commercial Lease Expiration Schedule Page 1 of 1 Property = imf00901,imf00902 As of 01/01/2015 Calendar Year Data as of Sep 24 2014 3:12PM
Lease Lease Property Tenant From To Units SF Vacant 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Thereafter imf00901 - Building 1 1 146,340 - - - - - 146,340 ------imf00902 - Building 2 2 61,620 - 43,440 - - - 18,180 ------Total 3 207,960 - 43,440 - - - 164,520 ------100% 0% 21% 0% 0% 0% 79% 0% 0% 0% 0% 0% 0%
Lease Lease Property - Unit Tenant From To Units SF Vacant 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Thereafter imf00901 - 100 Tenant A (t0050123) 12/01/13 01/31/19 1 146,340 - - - - - 146,340 ------imf00902 - 100 Tenant A (t00500 10/01/04 06/30/15 1 43,440 - 43,440 ------imf00902 - 190 Tenant B (t0107680) 02/01/14 02/28/19 1 18,180 - - - - - 18,180 ------Total 3 207,960 - 43,440 - - - 164,520 ------100% 0% 21% 0% 0% 0% 79% 0% 0% 0% 0% 0% 0% Appendix 69 THE COMMONS ATTHE WILLOWBROOK |Property ManagementandLeasing Proposal
Commercial Lease Expiration Schedule Page 1 of 1 Property = imf00901 As of 01/01/2015 Calendar Year Data as of Sep 24 2014 3:14PM
Lease Lease Property Tenant From To Units SF Vacant 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Thereafter imf00901 - Building- 1 1 146,340 - - - - - 146,340 ------Total 1 146,340 - - - - - 146,340 ------100% 0% 0% 0% 0% 0% 100% 0% 0% 0% 0% 0% 0%
Lease Lease Property - Unit Tenant From To Units SF Vacant 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Thereafter imf00901 - 100 Tenant A (t0050123) 12/01/13 01/31/19 1 146,340 - - - - - 146,340 ------Total 1 146,340 - - - - - 146,340 ------100% 0% 0% 0% 0% 0% 100% 0% 0% 0% 0% 0% 0% Appendix 70 THE COMMONS ATTHE WILLOWBROOK |Property ManagementandLeasing Proposal
Commercial Lease Expiration Schedule Page 1 of 1 Property = imf00902 As of 01/01/2015 Calendar Year Data as of Sep 24 2014 3:15PM
Lease Lease Property Tenant From To Units SF Vacant 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Thereafter imf00902 - Building- 2 2 61,620 - 43,440 - - - 18,180 ------Total 2 61,620 - 43,440 - - - 18,180 ------100% 0% 70% 0% 0% 0% 30% 0% 0% 0% 0% 0% 0%
Lease Lease Property - Unit Tenant From To Units SF Vacant 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Thereafter imf00902 - 100 Tenant A (t00500 10/01/04 06/30/15 1 43,440 - 43,440 ------imf00902 - 190 Tenant B (t0107680) 02/01/14 02/28/19 1 18,180 - - - - - 18,180 ------Total 2 61,620 - 43,440 - - - 18,180 ------100% 0% 70% 0% 0% 0% 30% 0% 0% 0% 0% 0% 0% Appendix 71 THE COMMONS ATTHE WILLOWBROOK |Property ManagementandLeasing Proposal
Leasing Activity By Suite Page 1 of 2 Leasing activity Data as of Sep 24 2014 3:18PM SqFt Building 207,960 Property Square Start End $/SF/ Monthly Annualized Total Total Unit Name Feet Tenant Date Date Term Year Amount Amount TIs $/SF LCs $/SF New 100 Building- 2 43,440 New Tenant (20% New) 7/1/2015 8/31/2020 62 months 43,440 Total - New - -
Renewal 100 Building- 2 43,440 Tenant A (80% R 7/1/2015 8/31/2020 62 months 32,580 0.75 63,005 1.45 Base Rent 7/1/2015 6/30/2016 4.56 16,507 198,086 7/1/2016 6/30/2017 4.68 16,953 203,435 7/1/2017 6/30/2018 4.81 17,411 208,927 7/1/2018 6/30/2019 4.94 17,881 214,569 7/1/2019 6/30/2020 5.07 18,363 220,362 7/1/2020 8/31/2020 5.21 18,859 226,312
Free Rent (2 months) 7/1/2015 8/31/2015 (4.56) (16,507)
43,440 Total - Renewal 32,580 0.75 63,005 1.45 Appendix 72 THE COMMONS ATTHE WILLOWBROOK |Property ManagementandLeasing Proposal
Leasing Activity By Suite - Expirations Page 2 of 2 Leasing activity Data as of Sep 24 2014 3:18PM
Occupancy/Leasing Projections Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Average Occupied RSF 207,960 207,960 207,960 207,960 207,960 207,960 164,520 164,520 164,520 164,520 164,520 164,520 186,240 % Occupied 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 79.11% 79.11% 79.11% 79.11% 79.11% 79.11% 89.56% New + Renew RSF ------43,440 43,440 43,440 43,440 43,440 43,440 21,720 % New + Renew 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 20.89% 20.89% 20.89% 20.89% 20.89% 20.89% 10.44% Total Building RSF 207,960 207,960 207,960 207,960 207,960 207,960 207,960 207,960 207,960 207,960 207,960 207,960 207,960
Lease Expirations Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Total Lease Expirations 43,440 - - - 164,520 - - - - - % of Building Total 20.89% 0.00% 0.00% 0.00% 79.11% 0.00% 0.00% 0.00% 0.00% 0.00% Appendix 73 THE COMMONS AT WILLOWBROOK | Property Management and Leasing Proposal BUDGET
Appendix 74 THE COMMONS ATTHE WILLOWBROOK 207,960 207,960.00 budget Explanation 09/24/2014 207,960 Sq.Ft. 2015 Budget Explanation Page 1 of 4
Annual Total RSF Comments
RENTAL INCOME 40175-0000 Base Rental Income 837,857 4.03 TOTAL RENTAL INCOME 837,857 4.03
RECOVERY INCOME
41105-0000 Recovery Income - CAM 120,151 0.58 |Property ManagementandLeasing Proposal 41110-0000 Recovery Income - Insurance 22,810 0.11 41115-0000 Recovery Income - RE Tax 160,829 0.77 TOTAL RECOVERY INCOME 303,790 1.46 TOTAL INCOME 1,141,647 5.49
TOTAL REVENUES 1,141,647 5.49 PROPERTY EXPENSES
BUILDING REPAIRS & 50110-0000 Electric R & M 1,221 0.01 01/01/2015-Quarterly expenses for repairs and maintenance to exterior lighting. 01/01/2015-Quarterly expenses for repairs and maintenance to exterior lighting. 50146-0000 Pest Control/Extermination 2,598 0.01 01/01/2015-Monthly Service for perimeter treatment to building exterior (includes ant and rodent control). 01/01/2015-Monthly Service for perimeter treatment to building exterior (includes ant and rodent control). 50148-0000 Plumbing R & M 1,800 0.01 01/01/2015-Contingency budgeted for possible repairs and maintenance to the main lines servicing the building. 01/01/2015-Contingency budgeted for possible repairs and maintenance to the main lines servicing the building. 50150-0000 Roofing R & M 4,100 0.02 01/01/2015-Expenses budgeted for anticipated roof R&M. 08/01/2015-Expenses budgeted for annual roof inspection 01/01/2015-Expenses budgeted for anticipated roof R&M. 08/01/2015-Expenses budgeted for annual roof inspection 50195-0000 Miscellaneous R & M 1,500 0.01 01/01/2015-Contingency expense for Repairs and maintenance not covered in a specific category. 01/01/2015-Contingency expense for Repairs and maintenance not covered in a specific category. TOTAL BUILDING REPAIRS & 11,219 0.05
Appendix COMMON AREA MAINTENANCE 52114-0000 Fire Protection 6,523 0.03 01/01/2015-Quarterly and annual inspections to the fire system. weekly fire pump testing and possible repairs per inspection reports. 01/01/2015-Quarterly and annual inspections to the fire system. weekly fire pump testing and possible repairs per inspection
75 reports. THE COMMONS ATTHE WILLOWBROOK 207,960 207,960.00 budget Explanation 09/24/2014 207,960 Sq.Ft. 2015 Budget Explanation Page 2 of 4
Annual Total RSF Comments 52120-0000 Landscape Exterior - Contract 11,919 0.06 01/01/2015-Expenses based on contract with Van Sant Landscaping for 44 visits per year. 01/01/2015-Expenses based on contract with Van Sant Landscaping for 44 visits per year. 52122-0000 Landscape Exterior - Supplies 4,825 0.02 01/01/2015-Expenses budgeted for possible plant replacement due to weather conditions, irrigation repairs and seasonal color changes and annual mulch. 05/01/2015-Expenses budgeted in April for annual tree |Property ManagementandLeasing Proposal trimming. 01/01/2015-Expenses budgeted for possible plant replacement due to weather conditions, irrigation repairs and seasonal color changes and annual mulch. 05/01/2015-Expenses budgeted in April for annual tree trimming. 52132-0000 Non-Billable CAM 2,750 0.01 01/01/2015-Contingency expense budgeted for possible repairs and maintenance not included in reimbursable cam. 01/01/2015-Contingency expense budgeted for possible repairs and maintenance not included in reimbursable cam 52144-0000 Parking Lot Maintenance 1,050 0.01 01/01/2015-Expenses budgeted for possible pot hole and curb repairs and annual cost of parking lot striping. 01/01/2015-Expenses budgeted for possible pot hole and curb repairs and annual cost of parking lot striping. 52146-0000 Parking Lot Sweeping 3,840 0.02 01/01/2015-sweeping Contract with Porter Service for parking lot cleaning and maintenance weekly and possible heavy trash removal projected quarterly. 01/01/2015-sweeping Contract with Porter Service for parking lot cleaning and maintenance weekly and possible heavy trash removal projected quarterly. TOTAL COMMON AREA 30,906 0.15
UTILITIES 53104-0000 Electric - Common 13,126 0.06 01/01/2015-Building electricity expense is based on prior year actuals. 01/01/2015-Building electricity expense is based on prior year actuals. 53114-0000 Gas & Fuel - Common 250 0.00 01/01/2015-Building gas services provided by Centerpoint energy. Expenses based on prior year actuals. 53130-0000 Water/Sewer 26,087 0.13 01/01/2015-Building water based on prior year actuals. 01/01/2015-Building water based on prior year actuals.
Appendix TOTAL UTILITIES 39,463 0.19
PROPERTY MANAGEMENT FEES 55105-0000 Property Management Fees 34,073 0.16 01/01/2015-Property Management fees are based on 3% of gross revenues projected. 01/01/2015-Property Management fees are based on 3% of
76 gross revenues projected. TOTAL PROPERTY 34,073 0.16 THE COMMONS ATTHE WILLOWBROOK 207,960 207,960.00 budget Explanation 09/24/2014 207,960 Sq.Ft. 2015 Budget Explanation Page 3 of 4
Annual Total RSF Comments INSURANCE 56105-0000 Property Casualty Insurance 32,371 0.16 01/01/2015-Premiums based on 3% increase over 2014. 01/01/2015-Premiums based on 3% increase over 2014. TOTAL INSURANCE 32,371 0.16
REAL ESTATE TAXES 57105-0000 Property Taxes 235,434 1.13 01/01/2015-Property taxes based on estimate provided by tax |Property ManagementandLeasing Proposal consultant with an estimated value of 8.5M (Building 1 - 70.37% of total expense) 01/01/2015-Property taxes based on estimate provided by Tax Consultant with an estimated value of 8.5M (bldg. 2 - 29.6% of total) TOTAL REAL ESTATE TAXES 235,434 1.13
MARKETING EXPENSES 58105-0000 Advertising Expense 1,700 0.01 01/01/2015-Expenses budgeted for tenant holiday gifts and site plan updates. 01/01/2015-Expenses budgeted for tenant holiday gifts and site plan updates. TOTAL MARKETING 1,700 0.01
ADMINISTRATIVE EXPENSES 59104-0000 Audit/Accounting Fees 4,119 0.02 59118-0000 Professional & Consulting Fees 1,500 0.01 01/01/2015-Contingency for possible legal fees. 01/01/2015-Contingency for possible legal fees. 59120-0000 Tax Prep Fees 3,000 0.01 01/01/2015-Annual tax protesting fee for Pace Tax Consulting. 01/01/2015-Annual tax protesting fee for Pace Tax Consulting. 59195-0000 Miscellaneous General & 805 0.00 01/01/2015-Miscellaneous administrative fees including IT, bank fees, courier/delivery fees, yardi licenses, etc. 01/01/2015-Miscellaneous administrative fees including IT, bank fees, courier/delivery fees, yardi licenses, etc. TOTAL ADMINISTRATIVE 9,424 0.05
TOTAL PROPERTY EXPENSES 394,590 1.90
PROPERTY NET OPERATING 747,057 3.59
ADJUSTMENTS Appendix REAL ESTATE INVESTMENTS 14140-1000 Tenant Improvements - Renewal -32,580 -0.16 07/01/2015-Improvements budgeted for Tenant A renewal at a rate of .75/psf 14140-5000 CM Fee - Tenant Improvements -1,629 -0.01 07/01/2015-5% CM fee budgeted for Tenant A renewal 07/01/2015-Leasing Commission budged for Tenant A renewal 14150-1000 Deferred Leasing Costs - Renewal -89,139 -0.43 (4% outside broker, 2% inside broker). 77
TOTAL REAL ESTATE -123,348 -0.59 THE COMMONS ATTHE WILLOWBROOK |Property ManagementandLeasing Proposal
207,960 207,960.00 budget Explanation 09/24/2014 207,960 Sq.Ft. 2015 Budget Explanation Page 4 of 4
Annual Total RSF Comments
TOTAL ADJUSTMENTS -123,348 -0.59
CASH FLOW 623,709 3.00 Appendix 78 THE COMMONS ATTHE WILLOWBROOK 146,340 146,340.00 budget Explanation 09/24/2014 146,340 Sq.Ft. 2015 Budget Explanation Page 1 of 2
Annual Total RSF Comments
RENTAL INCOME 40175-0000 Base Rental Income 613,165 4.19 TOTAL RENTAL INCOME 613,165 4.19
RECOVERY INCOME
41105-0000 Recovery Income - CAM 55,546 0.38 |Property ManagementandLeasing Proposal 41110-0000 Recovery Income - Insurance 16,029 0.11 41115-0000 Recovery Income - RE Tax 116,583 0.80 TOTAL RECOVERY INCOME 188,159 1.29 TOTAL INCOME 801,324 5.48
TOTAL REVENUES 801,324 5.48 PROPERTY EXPENSES
BUILDING REPAIRS & 50110-0000 Electric R & M 1,000 0.01 01/01/2015-Quarterly expenses for repairs and maintenance to exterior lighting. 50146-0000 Pest Control/Extermination 1,429 0.01 01/01/2015-Monthly Service for perimeter treatment to building exterior (includes ant and rodent control). 50148-0000 Plumbing R & M 900 0.01 01/01/2015-Contingency budgeted for possible repairs and maintenance to the main lines servicing the building. 50150-0000 Roofing R & M 2,050 0.01 01/01/2015-Expenses budgeted for anticipated roof R&M. 08/01/2015-Expenses budgeted for annual roof inspection 50195-0000 Miscellaneous R & M 750 0.01 01/01/2015-Contingency expense for Repairs and maintenance not covered in a specific category. TOTAL BUILDING REPAIRS & 6,129 0.04
COMMON AREA MAINTENANCE 52114-0000 Fire Protection 4,030 0.03 01/01/2015-Quarterly and annual inspections to the fire system. weekly fire pump testing and possible repairs per inspection reports. 52120-0000 Landscape Exterior - Contract 8,387 0.06 01/01/2015-Expenses based on contract with Van Sant Landscaping for 44 visits per year. 52122-0000 Landscape Exterior - Supplies 3,395 0.02 01/01/2015-Expenses budgeted for possible plant replacement due to weather conditions, irrigation repairs and seasonal color changes and annual mulch. 05/01/2015-Expenses budgeted in April for annual tree Appendix trimming. 52132-0000 Non-Billable CAM 750 0.01 01/01/2015-Contingency expense budgeted for possible repairs and maintenance not included in reimbursable cam. 52144-0000 Parking Lot Maintenance 1,050 0.01 01/01/2015-Expenses budgeted for possible pot hole and curb repairs and annual cost of parking lot striping. 52146-0000 Parking Lot Sweeping 2,702 0.02 01/01/2015-sweeping Contract with Porter Service for parking 79 lot cleaning and maintenance weekly and possible heavy trash removal projected quarterly. TOTAL COMMON AREA 20,315 0.14 THE COMMONS ATTHE WILLOWBROOK 146,340 146,340.00 budget Explanation 09/24/2014 146,340 Sq.Ft. 2015 Budget Explanation Page 2 of 2
Annual Total RSF Comments
UTILITIES 53104-0000 Electric - Common 3,858 0.03 01/01/2015-Building electricity expense is based on prior year actuals. 53130-0000 Water/Sewer 22,667 0.15 01/01/2015-Building water based on prior year actuals. TOTAL UTILITIES 26,525 0.18 |Property ManagementandLeasing Proposal PROPERTY MANAGEMENT FEES 55105-0000 Property Management Fees 24,040 0.16 01/01/2015-Property Management fees are based on 3% of gross revenues projected. TOTAL PROPERTY 24,040 0.16
INSURANCE 56105-0000 Property Casualty Insurance 22,779 0.16 01/01/2015-Premiums based on 3% increase over 2014. TOTAL INSURANCE 22,779 0.16
REAL ESTATE TAXES 57105-0000 Property Taxes 165,673 1.13 01/01/2015-Property taxes based on estimate provided by Pace Tax Services with an estimated value of 8.5M (Building 1 - 70.37% of total expense) TOTAL REAL ESTATE TAXES 165,673 1.13
MARKETING EXPENSES 58105-0000 Advertising Expense 700 0.00 01/01/2015-Expenses budgeted for tenant holiday gifts and site plan updates. TOTAL MARKETING 700 0.00
ADMINISTRATIVE EXPENSES 59104-0000 Audit/Accounting Fees 2,083 0.01 59118-0000 Professional & Consulting Fees 750 0.01 01/01/2015-Contingency for possible legal fees. 59120-0000 Tax Prep Fees 2,111 0.01 01/01/2015-Annual tax protesting fee for Pace Tax Consulting. 59195-0000 Miscellaneous General & 566 0.00 01/01/2015-Miscellaneous administrative fees including IT, bank fees, courier/delivery fees, yardi licenses, etc. TOTAL ADMINISTRATIVE 5,510 0.04
TOTAL PROPERTY EXPENSES 271,671 1.86
529,653 3.62 Appendix PROPERTY NET OPERATING
CASH FLOW 529,653 3.62 80 THE COMMONS ATTHE WILLOWBROOK 61,620 61,620.00 budget Explanation 09/24/2014 61,620 Sq.Ft. 2015 Budget Explanation Page 1 of 3
Annual Total RSF Comments
RENTAL INCOME 40175-0000 Base Rental Income 224,692 3.65 TOTAL RENTAL INCOME 224,692 3.65
RECOVERY INCOME
41105-0000 Recovery Income - CAM 64,605 1.05 |Property ManagementandLeasing Proposal 41110-0000 Recovery Income - Insurance 6,781 0.11 41115-0000 Recovery Income - RE Tax 44,246 0.72 TOTAL RECOVERY INCOME 115,631 1.88 TOTAL INCOME 340,323 5.52
TOTAL REVENUES 340,323 5.52 PROPERTY EXPENSES
BUILDING REPAIRS & 50110-0000 Electric R & M 221 0.00 01/01/2015-Quarterly expenses for repairs and maintenance to exterior lighting. 50146-0000 Pest Control/Extermination 1,169 0.02 01/01/2015-Monthly Service for perimeter treatment to building exterior (includes ant and rodent control). 50148-0000 Plumbing R & M 900 0.01 01/01/2015-Contingency budgeted for possible repairs and maintenance to the main lines servicing the building. 50150-0000 Roofing R & M 2,050 0.03 01/01/2015-Expenses budgeted for anticipated roof R&M. 08/01/2015-Expenses budgeted for annual roof inspection 50195-0000 Miscellaneous R & M 750 0.01 01/01/2015-Contingency expense for Repairs and maintenance not covered in a specific category. TOTAL BUILDING REPAIRS & 5,090 0.08
COMMON AREA MAINTENANCE 52114-0000 Fire Protection 2,493 0.04 01/01/2015-Quarterly and annual inspections to the fire system. weekly fire pump testing and possible repairs per inspection reports. 52120-0000 Landscape Exterior - Contract 3,532 0.06 01/01/2015-Expenses based on contract with Van Sant Landscaping for 44 visits per year. 52122-0000 Landscape Exterior - Supplies 1,430 0.02 01/01/2015-Expenses budgeted for possible plant replacement due to weather conditions, irrigation repairs and seasonal color changes and annual mulch. Appendix 05/01/2015-Expenses budgeted in April for annual tree trimming. 52132-0000 Non-Billable CAM 2,000 0.03 01/01/2015-Contingency expense budgeted for possible repairs and maintenance not included in reimbursable cam 52146-0000 Parking Lot Sweeping 1,138 0.02 01/01/2015-sweeping Contract with Porter Service for parking lot cleaning and maintenance weekly and possible heavy trash 81 removal projected quarterly. TOTAL COMMON AREA 10,592 0.17 THE COMMONS ATTHE WILLOWBROOK 61,620 61,620.00 budget Explanation 09/24/2014 61,620 Sq.Ft. 2015 Budget Explanation Page 2 of 3
Annual Total RSF Comments UTILITIES 53104-0000 Electric - Common 9,268 0.15 01/01/2015-Building electricity expense is based on prior year actuals. 53114-0000 Gas & Fuel - Common 250 0.00 01/01/2015-Building gas services provided by Centerpoint energy. Expenses based on prior year actuals. 53130-0000 Water/Sewer 3,420 0.06 01/01/2015-Building water based on prior year actuals. TOTAL UTILITIES 12,938 0.21 |Property ManagementandLeasing Proposal
PROPERTY MANAGEMENT FEES 55105-0000 Property Management Fees 10,033 0.16 01/01/2015-Property Management fees are based on 3% of gross revenues projected. TOTAL PROPERTY 10,033 0.16
INSURANCE 56105-0000 Property Casualty Insurance 9,591 0.16 01/01/2015-Premiums based on 3% increase over 2014. TOTAL INSURANCE 9,591 0.16
REAL ESTATE TAXES 57105-0000 Property Taxes 69,761 1.13 01/01/2015-Property taxes based on estimate provided by Tax Consultant with an estimated value of 8.5M (bldg. 2 - 29.6% of total) TOTAL REAL ESTATE TAXES 69,761 1.13
MARKETING EXPENSES 58105-0000 Advertising Expense 1,000 0.02 01/01/2015-Expenses budgeted for tenant holiday gifts and site plan updates. TOTAL MARKETING 1,000 0.02
ADMINISTRATIVE EXPENSES 59104-0000 Audit/Accounting Fees 2,036 0.03 59118-0000 Professional & Consulting Fees 750 0.01 01/01/2015-Contingency for possible legal fees. 59120-0000 Tax Prep Fees 889 0.01 01/01/2015-Annual tax protesting fee for Pace Tax Consulting. 59195-0000 Miscellaneous General & 239 0.00 01/01/2015-Miscellaneous administrative fees including IT, bank fees, courier/delivery fees, yardi licenses, etc. TOTAL ADMINISTRATIVE 3,913 0.06
TOTAL PROPERTY EXPENSES 122,919 1.99 Appendix PROPERTY NET OPERATING 217,404 3.53
ADJUSTMENTS
REAL ESTATE INVESTMENTS
82 14140-1000 Tenant Improvements - Renewal -32,580 -0.53 07/01/2015-Improvements budgeted for Tenant A renewal at a rate of .75/psf THE COMMONS ATTHE WILLOWBROOK |Property ManagementandLeasing Proposal
61,620 61,620.00 budget Explanation 09/24/2014 61,620 Sq.Ft. 2015 Budget Explanation Page 3 of 3
Annual Total RSF Comments 14140-5000 CM Fee - Tenant Improvements -1,629 -0.03 07/01/2015-5% CM fee budgeted for Tenant A renewal 07/01/2015-Leasing Commission budged for Tenant A renewal 14150-1000 Deferred Leasing Costs - Renewal -89,139 -1.45 (4% outside broker, 2% inside broker).
TOTAL REAL ESTATE -123,348 -2.00
TOTAL ADJUSTMENTS -123,348 -2.00
CASH FLOW 94,056 1.53 Appendix 83 THE COMMONS AT WILLOWBROOK | Property Management and Leasing Proposal
207,960 207,960.00 0.00 Annual Budget Summary 09/24/2014 207,960 Sq.Ft. 2015 Annual Budget Summary Page 1 of 2
Total $/RSF
RENTAL INCOME Base Rental Income 837,857 4.03 TOTAL RENTAL INCOME 837,857 4.03
RECOVERY INCOME Recovery Income - CAM 120,151 0.58 Recovery Income - Insurance 22,810 0.11 Recovery Income - RE Tax 160,829 0.77 TOTAL RECOVERY INCOME 303,790 1.46 TOTAL INCOME 1,141,647 5.49
TOTAL REVENUES 1,141,647 5.49 PROPERTY EXPENSES
BUILDING REPAIRS & MAINTENANCE Electric R & M 1,221 0.01 Pest Control/Extermination Contract Services 2,598 0.01 Plumbing R & M 1,800 0.01 Roofing R & M 4,100 0.02 Miscellaneous R & M 1,500 0.01 TOTAL BUILDING REPAIRS & MAINTENANCE 11,219 0.05
COMMON AREA MAINTENANCE Fire Protection 6,523 0.03 Landscape Exterior - Contract 11,919 0.06 Landscape Exterior - Supplies 4,825 0.02 Non-Billable CAM 2,750 0.01 Parking Lot Maintenance 1,050 0.01 Parking Lot Sweeping 3,840 0.02 TOTAL COMMON AREA MAINTENANCE 30,906 0.15
UTILITIES Electric - Common 13,126 0.06 Gas & Fuel - Common 250 0.00 Water/Sewer 26,087 0.13 TOTAL UTILITIES 39,463 0.19
PROPERTY MANAGEMENT FEES Property Management Fees 34,073 0.16 TOTAL PROPERTY MANAGEMENT FEES 34,073 0.16
INSURANCE Property Casualty Insurance 32,371 0.16 TOTAL INSURANCE 32,371 0.16
REAL ESTATE TAXES Property Taxes 235,434 1.13 TOTAL REAL ESTATE TAXES 235,434 1.13
MARKETING EXPENSES Advertising Expense 1,700 0.01 TOTAL MARKETING EXPENSES 1,700 0.01
ADMINISTRATIVE EXPENSES Audit/Accounting Fees 4,119 0.02 Professional & Consulting Fees 1,500 0.01 Tax Prep Fees 3,000 0.01 Miscellaneous General & Administrative Expenses 805 0.00
Appendix 84 THE COMMONS ATTHE WILLOWBROOK
207,960 207,960.00 0.00 |Property ManagementandLeasing Proposal Annual Budget Summary 09/24/2014 207,960 Sq.Ft. 2015 Annual Budget Summary Page 2 of 2
Total $/RSF TOTAL ADMINISTRATIVE EXPENSES 9,424 0.05
TOTAL PROPERTY EXPENSES 394,590 1.90
PROPERTY NET OPERATING INCOME 747,057 3.59
ADJUSTMENTS
REAL ESTATE INVESTMENTS Tenant Improvements - Renewal -32,580 -0.16 CM Fee - Tenant Improvements -1,629 -0.01 Deferred Leasing Costs - Renewal -89,139 -0.43 TOTAL REAL ESTATE INVESTMENTS -123,348 -0.59
TOTAL ADJUSTMENTS -123,348 -0.59
CASH FLOW 623,709 3.00 Appendix 85 THE COMMONS ATTHE WILLOWBROOK |Property ManagementandLeasing Proposal 207,960 207,960.00 207,960 Sq.Ft. GL Account Detail 09/24/2014 Reforecast Books: Forecast3 53130-0000 Water/Sewer Page 18 of 25
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total $/RSF 1,889 1,889 1,889 1,889 1,889 1,889 1,889 1,889 1,889 1,889 1,889 1,889 22,667 0.11
2015 Budget 2,174 2,174 2,174 2,174 2,174 2,174 2,174 2,174 2,174 2,174 2,174 2,174 26,087 0.13
2014 Reforecast 3,879 -950 878 1,876 2,636 3,220 2,633 2,298 2,298 2,298 2,298 2,298 25,663 0.12
2014 Budget 2,298 2,298 2,298 2,298 2,298 2,298 2,298 2,298 2,298 2,298 2,298 2,298 27,576 0.13
2013 Actual 3,192 319 2,008 2,089 3,041 2,421 2,621 2,055 2,132 247 9,401 2,174 31,700 0.15
2012 Actual 2,886 1,275 1,332 2,183 1,606 3,049 4,145 1,687 3,001 2,081 2,285 3,610 29,141 0.14
2011 Actual 1,758 947 429 1,878 2,899 2,023 5,954 1,028 2,996 902 4,886 2,133 27,834 0.13
2010 Actual 1,616 1,267 1,615 875 -3,181 1,845 1,631 2,838 1,777 1,370 858 1,423 13,935 0.07
2009 Actual 0 0 3,158 0 0 3,724 1,833 0 0 0 6,302 1,558 16,574 0.08
Budget Details:
imf00902-Total for Account- 285 285 285 285 285 285 285 285 285 285 285 285 3,420 0.02
Total 2,174 2,174 2,174 2,174 2,174 2,174 2,174 2,174 2,174 2,174 2,174 2,174 26,087 0.13
Budget Narratives: Vendor History (trailing 36 months): 01/01/2015-(Expenses1) -Building water based on prior year actuals. CITY OF HOUSTON (72ci0164 ) 81,315 01/01/2015-(Expenses2) -Building water based on prior year actuals. 81,315 Appendix 86 THE COMMONS ATTHE WILLOWBROOK
207,960 207,960.00 |Property ManagementandLeasing Proposal 207,960 Sq.Ft. GL Account Detail 09/24/2014 Reforecast Books: Forecast3 55105-0000 Property Management Fees Page 19 of 25
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total $/RSF 2015 Budget 2,891 2,935 2,940 2,940 2,940 2,940 2,748 2,748 2,748 2,748 2,748 2,748 34,073 0.16
2014 Reforecast 2,500 3,135 3,135 2,935 3,148 3,579 3,787 2,891 2,891 2,891 2,891 2,891 36,671 0.18
2014 Budget 2,644 2,942 2,942 2,942 2,942 2,942 2,942 3,116 3,116 3,116 3,116 3,116 35,877 0.17
2013 Actual 2,943 2,982 3,062 3,385 2,636 3,206 2,921 2,620 3,222 2,921 2,921 2,500 35,321 0.17
2012 Actual 2,783 3,151 3,611 2,963 3,025 3,002 2,976 2,976 2,976 2,976 2,976 2,989 36,400 0.18
2011 Actual 5,336 2,488 2,622 2,500 2,725 2,725 2,725 2,725 2,725 2,725 2,725 2,751 34,771 0.17
2010 Actual 2,531 2,531 2,544 2,500 2,500 2,500 2,500 2,549 2,549 2,611 2,549 3,033 30,898 0.15
2009 Actual 0 0 7,556 0 0 10,040 36 2,536 2,536 2,536 2,500 2,509 30,247 0.15
Budget Details:
imf00901-Mgmt Fee from TA Budget Recover 1,963 2,007 2,007 2,007 2,007 2,007 2,007 2,007 2,007 2,007 2,007 2,007 24,040 0.12
imf00902-Mgmt Fee from TA Budget Recover 928 928 933 933 933 933 741 741 741 741 741 741 10,033 0.05
Total 2,891 2,935 2,940 2,940 2,940 2,940 2,748 2,748 2,748 2,748 2,748 2,748 34,073 0.16
Budget Narratives: Vendor History (trailing 36 months): 01/01/2015-(Expenses1) -Property Management fees are based on 3% of gross revenues TRANSWESTERN COMMERCIAL SERVICES (72tr1365 ) 107,589 projected. 107,589 01/01/2015-(Expenses2) -Property Management fees are based on 3% of gross revenues projected. Appendix 87 THE COMMONS AT WILLOWBROOK | Property Management and Leasing Proposal section v. c
Owner XYZ
Project Management Report
August 2014
Prepared By: LaTisha Staten Transwestern
Appendix 88 THE COMMONS AT WILLOWBROOK | Property Management and Leasing Proposal
1900 West Loop South Suite 1300 Houston, Texas 77027 Phone: 713-270-7700 Fax: 713-271-8063
September 09, 2014
Mr. xxxxxxxxxxx Asset Manager Entity Real Estate Street Houston, TX 77027
RE: August 2014 Management Report
Dear Owner,
Please find enclosed the Management Report for Project X for the period ending August 31, 2014. The following is a summary of the performance during the month.
Financial Performance: Current Current Current Budget Actual Variance
Total Revenues $103,879 $106,041 $2,163 Total Expenses $32,911 $36,149 -$3,238 Net Operating Income $70,967 $69,892 -$1,076
YTD YTD YTD Budget Actual Variance
Total YTD Revenues $724,308 $755,452 $31,144 Total YTD Expenses $265,067 $268,940 -$3,873 YTD Net Operating Income $459,241 $486,511 $27,271
Accounts Receivable:
• None to report
Leasing Performance
• During August, the occupancy at Building 1 was 100%. The occupancy at Building 2 was also 100%. The consolidated occupancy at Project X is 100%.
The Performance Advantage in Real Estate
Appendix 89 THE COMMONS AT WILLOWBROOK | Property Management and Leasing Proposal
Tenant Relations:
• Tenant A reported issues with HVAC. PM has received repair proposals from Infinity Air.
Operational Issues:
• No outstanding issues.
Capital Projects:
• No outstanding issues.
If you have any questions or concerns, please do not hesitate to contact me at 713-272-1206.
Very truly yours,
LaTisha Staten General Manager
Appendix 90 THE COMMONS AT WILLOWBROOK | Property Management and Leasing Proposal
BIP-Project X
BUILDING NAME SQ. FT.
BIP-Project X Tenant B Tenant A Tenant A 207,960 18,180 sf 43,440 sf 146,340 sf 2/28/2019 Expires 6/30/2015 Expires 1/31/2019
Vacant 2013 2014 2015 and beyond
Appendix 91 THE COMMONS AT WILLOWBROOK | Property Management and Leasing Proposal
Monthly Report Checklist For the month of: August 25, 2014
Fund / Separate Account: Property Name and Number: Property A - IMF00901-02 Management Company: Transwestern
Check if Included
I Financials Balance Sheet X Income Statement X Cash Flow X
II Comparison Reports Variance Narrative X Capital Expenditure Schedule X
III Bank Reconciliation(s) Bank Reconciliation(s) X Outstanding Checks Report X Intercompany Backup N/A Cash Rollforward Template(KAR, LBH, PRIM, TCRS, UCAL, VRS) N/A
IV Supporting Schedules Aged Receivables Report (from Yardi) with Explanations X Allowance for Doubtful Accounts Reserve Calculation N/A Receivables X Prepaid Expenses N/A Other Assets X Accounts Payable and Accrued Expenses X Check Summary (from Yardi) X Insurance Schedule X Insurance Bill (in the month when paid) X Utility Bond Invoices (in the month when paid) N/A Tax Schedule X Tax Bill (in the month when paid) N/A Mortgage Payable (Amortization Schedule) N/A Mortgage Escrow schedule N/A Other Liabilities X Contingent Liabilities N/A Property Tax Refund Liability X Management Fee Calculation X Cash Receipts Reconciliation X Receivable Summary by Charge Code (from Yardi) X Legal Fees Schedule N/A Bad Debt Write Off Approval Form N/A Portfolio Status/Marketing & Leasing Report N/A Tenant Sales Schedule (for retail properties: year end) N/A Quarterly recovery calculation support N/A
V Rent Roll Rent Roll (from Yardi) X Income Reconciliation Schedule X
Prepared by: Digitally signed by [email protected] Date: 2014.08.28 10:10:57 -05'00' 8/25/2014 512-314-3966 [email protected] Signature - Preparer Date Telephone Number Email Address
Reviewed and Approved by:
8/25/2014 512.314.3578 [email protected] TriciaSignature - Acctg Mitchell Manager Date Telephone Number Email Address
Reviewed and Approved by: LaTisha Staten LaTisha Staten 2014.09.09 13:04:58 -05'00' 8/25/2014 713.272.1206 [email protected] Signature - Property Manager Date Telephone Number Email Address
Appendix 92
Monthly report checklist THE COMMONS AT WILLOWBROOK | Property Management and Leasing Proposal
FINANCIALS
Appendix 93 THE COMMONS AT WILLOWBROOK | Property Management and Leasing Proposal
Property = imf00901 imf00902 Page 1 Balance Sheet Period = Aug 2014 Book = Accrual Current Balance ASSETS
CASH Property Operating -5,523.96 TOTAL CASH -5,523.96
RECEIVABLES AR - Qtrly Recovery Reconciliation 268.31 TOTAL RECEIVABLES 268.31
PREPAID EXPENSES Prepaid Insurance (Prop) 10,527.00 TOTAL PREPAID EXPENSES 10,527.00
REAL ESTATE INVESTMENTS Land Basis - Original Cost 1,263,629.02 Building Basis - Original Cost 7,952,104.86 Building Improvements 35,826.00 Tenant Improvements - New 53,077.96 Deferred Leasing Costs - New 146,586.85 Deferred Leasing Costs - Renewal 267,710.66 Market Value Adjustment 5,282,559.65 TOTAL REAL ESTATE INVESTMENTS 15,001,495.00
TOTAL ASSETS 15,006,766.35
LIABILITIES & EQUITY
LIABILITIES
ACCOUNTS PAYABLE & ACCRUED EXPENSES Accrued - Qtrly Recovery Reconciliation 11,729.26 Accrued - Real Estate Tax 153,600.00 Property Tax Refund Liability 21,635.69 Accrued - Other (Prop) 12,085.63 TOTAL ACCOUNTS PAYABLE & ACCRUED EXPENSES 199,050.58
PREPAID INCOME Prepaid Rental Income 22,262.39 TOTAL PREPAID INCOME 22,262.39
TENANT DEPOSITS Security Deposits 15,226.25 TOTAL TENANT DEPOSITS 15,226.25
TOTAL LIABILITIES 236,539.22
EQUITY Partners Equity (Prop) 9,141,553.58
FUNDING TO Funding To - Transwestern 2,293,953.55 TOTAL FUNDING TO 2,293,953.55
FUNDING FROM
Tuesday, September 09, 2014 11:10 AM
Appendix 94 THE COMMONS AT WILLOWBROOK | Property Management and Leasing Proposal
Property = imf00901 imf00902 Page 2 Balance Sheet Period = Aug 2014 Book = Accrual Current Balance Funding From - CBRE, Inc -155,000.00 Funding From - Transwestern -8,749,552.51 TOTAL FUNDING FROM -8,904,552.51
RETAINED EARNINGS Retained Earnings 4,968,017.23 Prior Periods' Retained Earnings 7,271,255.28 TOTAL RETAINED EARNINGS 12,239,272.51 TOTAL EQUITY 14,770,227.13
TOTAL LIABILITIES & EQUITY 15,006,766.35
Tuesday, September 09, 2014 11:10 AM
Appendix 95 THE COMMONS AT WILLOWBROOK | Property Management and Leasing Proposal
Property = imf00901 imf00902 Page 1 Income Statement Period = Aug 2014 Book = Accrual Period to Date % Year to Date % REVENUES
RENTAL INCOME Base Rental Income 71,180.80 67.13 510,267.60 67.54 TOTAL RENTAL INCOME 71,180.80 67.13 510,267.60 67.54
RECOVERY INCOME Recovery Income - CAM 11,594.85 10.93 82,605.50 10.93 Recovery Income - Insurance 2,944.55 2.78 21,679.60 2.87 Recovery Income - RE Tax 19,203.65 18.11 153,607.30 20.33 Recovery Income - Prior Year 0.00 0.00 -16,436.07 -2.18 TOTAL RECOVERY INCOME 33,743.05 31.82 241,456.33 31.96
OTHER INCOME Termination/Cancellation Fees... 0.00 0.00 2,610.23 0.35 Miscellaneous Income 1,117.38 1.05 1,117.38 0.15 TOTAL OTHER INCOME 1,117.38 1.05 3,727.61 0.49 TOTAL INCOME 106,041.23 100.00 755,451.54 100.00
TOTAL REVENUES 106,041.23 100.00 755,451.54 100.00 PROPERTY EXPENSES
BUILDING REPAIRS & MAIN... Electric R & M 0.00 0.00 746.36 0.10 Fire/Safety Equipment 0.00 0.00 270.63 0.04 Pest Control/Extermination Co... 216.49 0.20 1,731.92 0.23 Plumbing R & M 0.00 0.00 113.67 0.02 Miscellaneous R & M 378.88 0.36 595.38 0.08 TOTAL BUILDING REPAIR... 595.37 0.56 3,457.96 0.46
COMMON AREA MAINTENANCE Fire Protection 5,299.50 5.00 20,406.43 2.70 Landscape Exterior - Contract 993.25 0.94 8,521.57 1.13 Landscape Exterior - Supplies 392.62 0.37 1,516.42 0.20 Non-Billable CAM 0.00 0.00 1,920.90 0.25 Parking Lot Sweeping 0.00 0.00 1,543.37 0.20 TOTAL COMMON AREA M... 6,685.37 6.30 33,908.69 4.49
UTILITIES Electric - Common 666.55 0.63 8,531.79 1.13 Gas & Fuel - Common 20.62 0.02 166.00 0.02 Water/Sewer 3,157.74 2.98 17,330.39 2.29 TOTAL UTILITIES 3,844.91 3.63 26,028.18 3.45
PROPERTY MANAGEMENT FEES Property Management Fees 3,181.24 3.00 25,399.09 3.36 TOTAL PROPERTY MAN... 3,181.24 3.00 25,399.09 3.36
INSURANCE Property Casualty Insurance 2,631.75 2.48 21,054.00 2.79 TOTAL INSURANCE 2,631.75 2.48 21,054.00 2.79
REAL ESTATE TAXES Property Taxes 19,200.00 18.11 153,600.00 20.33 TOTAL REAL ESTATE TAXES 19,200.00 18.11 153,600.00 20.33
Tuesday, September 09, 2014 11:13 AM
Appendix 96 THE COMMONS AT WILLOWBROOK | Property Management and Leasing Proposal
Property = imf00901 imf00902 Page 2 Income Statement Period = Aug 2014 Book = Accrual Period to Date % Year to Date %
ADMINISTRATIVE EXPENSES Audit/Accounting Fees 0.00 0.00 4,118.58 0.55 Professional & Consulting Fees 0.00 0.00 1,127.50 0.15 Miscellaneous General & Admi... 10.66 0.01 246.11 0.03 TOTAL ADMINISTRATIVE... 10.66 0.01 5,492.19 0.73
TOTAL PROPERTY EXPENSES 36,149.30 34.09 268,940.11 35.60
PROPERTY NET OPERATING... 69,891.93 65.91 486,511.43 64.40
NET OPERATING INCOME B... 69,891.93 65.91 486,511.43 64.40 DEBT SERVICE
NET OPERATING INCOME A... 69,891.93 65.91 486,511.43 64.40
UNREALIZED APPRECIATION... Unrealized Appreciation 0.00 0.00 -2,561,688.38 -339.09 TOTAL UNREALIZED APP... 0.00 0.00 -2,561,688.38 -339.09
NET INCOME 69,891.93 65.91 3,048,199.81 403.49
Tuesday, September 09, 2014 11:13 AM
Appendix 97 THE COMMONS AT WILLOWBROOK | Property Management and Leasing Proposal
Consolidated Statement STATEMENT OF CASH FLOWS
Unaudited
Month Year to Date Aug 2014 Aug 2014
Cash flows from (used by) operating activities:
Property operating income 69,892 486,511 Adjustments to reconcile property operating income to net cash from operating activities by changes in: Accounts receivable - net 0 43,239 Prepaid expenses and other assets 2,632 (10,527) Accounts payable and accrued expenses (39) 33,044 Accrued real estate taxes 19,200 (56,889) Prepaid rental income (1,117) (555) Tenant security deposits 0 1,697
Net cash from (used by) operating activities 90,567 496,521
Cash flows from (used by) investing activities:
Additions to real property 0 (39,807)
Net cash from (used by) investing activities 0 (39,807)
Cash flows from (used by) financing activities:
Draws (repayments) of intercompany balances (93,234) (461,899)
Net cash from (used by) financing activities (93,234) (461,899)
Increase/(decrease) in cash and cash equivalents (2,667) (5,184) Cash and cash equivalents at beginning of period (2,857) (339) Cash and cash equivalents at end of period ($5,524) ($5,524)
Appendix 98 THE COMMONS AT WILLOWBROOK | Property Management and Leasing Proposal
COMPARISON REPORTS
Appendix 99 THE COMMONS ATTHE WILLOWBROOK 9/9/2014 1:14 PM
Property = imf00901 imf00902 Budget Comparison Cash Flow Period = Aug 2014 Book = Accrual
YTD Actual YTD Budget Variance % Var Explanations for variances of over $1,000 and 5%
REVENUES |Property ManagementandLeasing Proposal RENTAL INCOME Favorable variance is due to unbudgeted rental income for new tenant A at Retail Center Road, Suite 100. Tenant A lease expired 1/31/14 and space not budgeted Base Rental Income 510,267.60 474,272.40 35,995.20 7.59 to lease until 8/1/2014. TOTAL RENTAL INCOME 510,267.60 474,272.40 35,995.20 7.59
RECOVERY INCOME Unfavorable variance is due to 1st and 2nd quarter CAM Recovery Income - CAM 82,605.50 85,105.38 -2,499.88 -2.94 accruals. Recovery Income - Insurance 21,679.60 21,969.68 -290.08 -1.32 Favorable variance is due to unbudgeted income for new tenant A at Retail Center Road, Suite 100. Tenant B lease expired 1/31/14 and space not budgeted to lease until Recovery Income - RE Tax 153,607.30 142,960.44 10,646.86 7.45 8/1/2014. Variance is due to 2013 Reconciliation billings billed in April. Recovery Income - Prior Year -16,436.07 0.00 -16,436.07 N/A TOTAL RECOVERY INCOME 241,456.33 250,035.50 -8,579.17 -3.43
OTHER INCOME Termination/Cancellation Fees Income 2,610.23 0.00 2,610.23 N/A Termination cancellation fee for Tenant B Variance is due to income relative to move-out charges for Tenant B in Suite 190 (HVAC maintenance, overhead door Miscellaneous Income 1,117.38 0.00 1,117.38 N/A repairs). TOTAL OTHER INCOME 3,727.61 0.00 3,727.61 N/A TOTAL INCOME 755,451.54 724,307.90 31,143.64 4.30
TOTAL REVENUES 755,451.54 724,307.90 31,143.64 4.30 PROPERTY EXPENSES
BUILDING REPAIRS & MAINTENANCE Favorable variance is due to budgeted exterior lighting Electric R & M 746.36 1,800.00 1,053.64 58.54 maintenance not necessary to date. Appendix Fire/Safety Equipment 270.63 0.00 -270.63 N/A Pest Control/Extermination Contract Services 1,731.92 1,744.00 12.08 0.69 Plumbing R & M 113.67 532.00 418.33 78.63 Favorable variance is due to expenses budgeted for roof Roofing R & M 0.00 1,664.00 1,664.00 100.00 repairs and annual maintenance not necessary to date. Miscellaneous R & M 595.38 700.00 104.62 14.95 100 TOTAL BUILDING REPAIRS & MAINTENANCE 3,457.96 6,440.00 2,982.04 46.30
Page 1 of 3 THE COMMONS ATTHE WILLOWBROOK 9/9/2014 1:14 PM
Property = imf00901 imf00902 Budget Comparison Cash Flow Period = Aug 2014 Book = Accrual
YTD Actual YTD Budget Variance % Var Explanations for variances of over $1,000 and 5%
COMMON AREA MAINTENANCE Unfavorable variance is due to unbudgeted expenses for the |Property ManagementandLeasing Proposal installation of Fire boxes and FDC signage required by the City. Variance is also due to the installation of additional sprinklers Fire Protection 20,406.43 5,200.00 -15,206.43 -292.43 per Fire Marshal inspection. Landscape Exterior - Contract 8,521.57 8,676.64 155.07 1.79 Favorable variance is due to expenses budgeted for plant replacement, irrigation repairs, flower changes and mulch not Landscape Exterior - Supplies 1,516.42 3,886.00 2,369.58 60.98 necessary to date. Unfavorable variance is due move-out expenses for SFS which Non-Billable CAM 1,920.90 450.00 -1,470.90 -326.87 will be deducted from tenant security deposit. Favorable variance is due to budgeted expenses for parking lot Parking Lot Maintenance 0.00 4,722.00 4,722.00 100.00 maintenance, not necessary to date. Parking Lot Sweeping 1,543.37 2,381.00 837.63 35.18 TOTAL COMMON AREA MAINTENANCE 33,908.69 25,315.64 -8,593.05 -33.94
UTILITIES Favorable variance is due to electricity expenses being less Electric - Common 8,531.79 11,100.64 2,568.85 23.14 than budget. Gas & Fuel - Common 166.00 275.36 109.36 39.72 Favorable variance is due to water and sewer expenses being Water/Sewer 17,330.39 18,384.00 1,053.61 5.73 less than budget. TOTAL UTILITIES 26,028.18 29,760.00 3,731.82 12.54
PROPERTY MANAGEMENT FEES Unfavorable variance is due to timing of rent collections as Management fees are based on gross rents collected. Also Property Management Fees 25,399.09 23,411.06 -1,988.03 -8.49 due to higher income from CWP lease. TOTAL PROPERTY MANAGEMENT FEES 25,399.09 23,411.06 -1,988.03 -8.49
INSURANCE Property Casualty Insurance 21,054.00 23,550.00 2,496.00 10.60 Favorable variance is due to prepaid insurance. TOTAL INSURANCE 21,054.00 23,550.00 2,496.00 10.60
REAL ESTATE TAXES
Appendix Property Taxes 153,600.00 153,602.64 2.64 0.00 TOTAL REAL ESTATE TAXES 153,600.00 153,602.64 2.64 0.00
MARKETING EXPENSES Advertising Expense 0.00 800.00 800.00 100.00
101 TOTAL MARKETING EXPENSES 0.00 800.00 800.00 100.00
ADMINISTRATIVE EXPENSES
Page 2 of 3 THE COMMONS ATTHE WILLOWBROOK 9/9/2014 1:14 PM
Property = imf00901 imf00902 Budget Comparison Cash Flow Period = Aug 2014 Book = Accrual
YTD Actual YTD Budget Variance % Var Explanations for variances of over $1,000 and 5%
Audit/Accounting Fees 4,118.58 0.00 -4,118.58 N/A Unfavorable variance is due to property audit fees. Professional & Consulting Fees 1,127.50 1,000.00 -127.50 -12.75 |Property ManagementandLeasing Proposal Tax Prep Fees 0.00 0.00 0.00 N/A Miscellaneous General & Administrative Expenses 246.11 1,188.00 941.89 79.28 TOTAL ADMINISTRATIVE EXPENSES 5,492.19 2,188.00 -3,304.19 -151.01
TOTAL PROPERTY EXPENSES 268,940.11 265,067.34 -3,872.77 -1.46
PROPERTY NET OPERATING INCOME 486,511.43 459,240.56 27,270.87 5.94
NET OPERATING INCOME BEFORE DEBT SERVICE 486,511.43 459,240.56 27,270.87 5.94 DEBT SERVICE
NET OPERATING INCOME AFTER DEBT SERVICE 486,511.43 459,240.56 27,270.87 5.94
UNREALIZED APPRECIATION & DEPRECIATION Unrealized Appreciation -2,561,688.38 0.00 2,561,688.38 N/A TOTAL UNREALIZED APPRECIATION & DEPRECIATION -2,561,688.38 0.00 2,561,688.38 N/A
NET INCOME 3,048,199.81 459,240.56 2,588,959.25 563.75 Appendix 102
Page 3 of 3 THE COMMONS ATTHE WILLOWBROOK Property Name & Number: Project IMF00901-02 Capital Expenditures Schedule Aug-14
YTD ACTUAL TOTALS SHOULD AGREE TO G/L ACTIVITY. YTD & ANNUAL BUDGET TOTALS SHOULD AGREE TO THE APPROVED BUDGET.
T ot al C ost Basi s as of L ast Y ear $9,679,129 M arket Value Adjustment as of Last Year $4,532,560
Year to Date Total Project / Annual Budget
Building I mprovements (14135-0000) Proj ected YTD YTD YTD Month of Proj ected Total Annual Proj ect Explanation for any variances equal to or above $5,000 for either the Proj ect % Complete A ctual Budget V ari ance Completion Proj ect A ctual Budget V ari ance Y T D or the T otal Pr oj ect sections.
Pr oj ect Name 0% $0 $0 $0 M onth $0 $0 $0 Explain why a project is under or over budget. |Property ManagementandLeasing Proposal
$0 $0 $0 $0 $0 $0
CM Fee - Building I mprovements (14135-5000)
Pr oj ect Name 0% $0 $0 $0 M onth $0 $0 $0 Explain why a project is under or over budget.
$0 $0 $0 $0 $0 $0
TOTAL Building I mprovements $0 $0 $0 $0 $0 $0
Tenant I mprovements (14140-XXXX) Proj ected TI Type (New, Renewal , YTD YTD YTD Month of Proj ected Total Annual Proj ect Tenant Expansi on, M ake Ready) % Complete A ctual Budget V ari ance Completion Proj ect A ctual Budget V ari ance Expl anati on
Spec Tenant New 0% $0 $0 $0 Aug $18,180 $18,180 $0 Proj ected New Tenant $1.00 Per Sq Ft
$0 $0 $0 $18,180 $18,180 $0
CM Fee - Tenant I mprovements (14140-5000)
Spec Tenant New 0% $0 $0 $0 Aug $0 $0 $0 Proj ected New Tenant $1.00 Per Sq Ft
$0 $0 $0 $0 $0 $0
TOTAL Tenant I mprovements $0 $0 $0 $0 $0 $0
Lease Commissions * (14150-XXXX) Proj ected L C Type (New, Renewal , YTD YTD YTD Month of Proj ected Total Annual Proj ect Tenant Expansion) A ctual Budget V ari ance Completion Proj ect A ctual Budget V ari ance Expl anati on
Variance is due to space being leased prior to budgeted time line. Tenant A NEW $39,659 $33,313 ($6,346) April $38,312 $33,313 ($4,999) Tenant B Lease Consultation Renewal 148 0 ($148)
TOTAL Lease Commissions $39,807 $33,313 ($6,494) $38,312 $33,313 ($4,999)
* L ease commi ssi ons shoul d i ncl ude l egal f ees associ ated wi th the negoti ati on of the speci f i c l ease.
Appendix M arket Value Adjustment in current year $750,000 YTD Total Real Estate Investments $15,001,495 103
Capital Expenditure Schedul THE COMMONS AT WILLOWBROOK | Property Management and Leasing Proposal
BANK RECONCILIATION(S)
Appendix 104 THE COMMONS ATTHE WILLOWBROOK SUPPORTING SCHEDULES |Property ManagementandLeasing Proposal
Aged Receivable Current 0-30 31-60 61-90 Over Pre- Total Property Customer Lease Name Status Memo Owed Owed Owed Owed 90 Owed Payments Owed
imf00902 - Building - 2 t0050095 Tenant A t0107680 Current 0.00 0.00 0.00 0.00 0.00 -22,261.79 -22,261.79 09.14 Prepaid Rent imf00902 - Building - 2 Tenant B Current 0.00 0.00 0.00 0.00 0.00 -0.60 -0.60 05/25/14 Over Payment imf00902 - Clay Distribution- 2 0.00 0.00 0.00 0.00 0.00 -22,262.39 -22,262.39
Grand Total 0.00 0.00 0.00 0.00 0.00 -22,262.39 -22,262.39
UserId : 72tmitchell Date : 8/27/2014 Time : 7:42 AM Appendix 105 THE COMMONS ATTHE WILLOWBROOK
Aging Detail Page 1 DB Caption: LIVE All Selected Properties Status: Current, Past, Future Age As Of: 08/31/2014 Post To: 08/2014 Property Customer Lease Status Tran# Charge Date Month Current 0-30 31-60 61-90 Over Pre- Total Code Owed Owed Owed Owed 90 Owed payments Owed |Property ManagementandLeasing Proposal Building- 2 (imf00902) Tenant A (t0050095) imf00902 Tenant A Current R- Prepay 01/23/2014 01/2014 0.00 0.00 0.00 0.00 0.00 -921.20 -921.20 3467617 imf00902 Tenant A Current R- Prepay 02/23/2014 02/2014 0.00 0.00 0.00 0.00 0.00 -0.19 -0.19 3507738 imf00902 Tenant A Current R- Prepay 03/22/2014 03/2014 0.00 0.00 0.00 0.00 0.00 -0.20 -0.20 3544688 imf00902 Tenant A Current R- Prepay 08/25/2014 08/2014 0.00 0.00 0.00 0.00 0.00 -21,340.20 -21,340.20 3757609 Tenant A 0.00 0.00 0.00 0.00 0.00 -22,261.79 -22,261.79
Tenant B (t0107680) imf00902 Tenant B Current R- Prepay 02/28/2014 03/2014 0.00 0.00 0.00 0.00 0.00 -0.20 -0.20 3516651 imf00902 Tenant B Current R- Prepay 05/05/2014 05/2014 0.00 0.00 0.00 0.00 0.00 -0.40 -0.40 3605459 Tenant B 0.00 0.00 0.00 0.00 0.00 -0.60 -0.60
imf00902 0.00 0.00 0.00 0.00 0.00 -22,262.39 -22,262.39
Grand 0.00 0.00 0.00 0.00 0.00 -22,262.39 -22,262.39 Total
UserId : 72lstaten Date : 9/9/2014 Time : 10:25 AM Appendix
Tuesday, September 09, 2014 10:25 AM 106 THE COMMONS AT WILLOWBROOK | Property Management and Leasing Proposal
Property Name & Number: Project - IMF00901-02 AR Other 11115-0000 August 25, 2014
Bal ance per GL Dat e Sent Vendor
Margin tax adjustment
TOTAL 0.00
Not e 1: Not e 2: Not e 3: Not e 3:
Appendix 107 THE COMMONS AT WILLOWBROOK | Property Management and Leasing Proposal
Property Name & Number: Project - IMF00901-02 AR Other 11117-0000 August 25, 2014
Bal ance per GL Date Sent Vendor 4th Q (2013) CAM rec accrual 36,011.97 12/31/13 Various 4th Q (2013) CAM rev accrual (36,011.97) 03/25/14 Various 1st Q (2014) CAM rec accrual 285.33 01/00/00 Various 1st Q (2014) CAM rev accrual (285.33) 01/00/00 Various 2nd Q (2014) CAM accrual 268.31 01/00/00 Various 01/00/00 Various 01/00/00 Various
TOTAL 268.31 Acct # 11117-0000
Note 1: Note 2: Note 3: Note 3:
Appendix 108 THE COMMONS ATTHE WILLOWBROOK
Payment Summary Page 1 Property=imf00901,imf00902 AND Bank=72ap2imf AND mm/yy=08/2014-08/2014 AND All Checks=Yes AND Include Voids=All Checks Check Post Total Date Bank Check# Vendor Date Month Amount Reconciled 72ap2imf - IMRF AP- 875 72ci0164 - CITY OF HOUSTON 08/07/2014 08/2014 2,934.76 08/25/2014 72ap2imf - IMRF AP- 876 72fe1351 - FEDEX-TAX DEPARTMENT 08/07/2014 08/2014 5.33 08/25/2014 72ap2imf - IMRF AP- 877 72gk1646 - GKII CLAY CROSSING LP 08/07/2014 08/2014 0.00 72ap2imf - IMRF AP- 878 72ma1456 - MARAVILLA DRYWALL & PAINTING 08/07/2014 08/2014 378.88 08/25/2014 72ap2imf - IMRF AP- 879 72po7695 - CHARLES DAVID JONES 08/07/2014 08/2014 491.46 08/25/2014 72ap2imf - IMRF AP- 880 72tr1365 - TRANSWESTERN COMMERCIAL SERVICES08/07/2014 08/2014 3,787.13 08/25/2014
72ap2imf - IMRF AP- 881 72va5181 - VAN SANT LANDSCAPE MANAGEMENT 08/07/2014 08/2014 1,234.86 08/25/2014 |Property ManagementandLeasing Proposal 72ap2imf - IMRF AP- 882 72ch6581 - MAJID MASHAYEKHI 08/25/2014 08/2014 216.49 72ap2imf - IMRF AP- 883 72fe1351 - FEDEX-TAX DEPARTMENT 08/25/2014 08/2014 5.33 72ap2imf - IMRF AP- 884 72hg1351 - HG FIRE SYSTEMS, LP 08/25/2014 08/2014 4,416.60 72ap2imf - IMRF AP- 885 72re1351 - RELIANT ENERGY, INC. 08/25/2014 08/2014 885.54 14,356.38 Appendix
109 Tuesday, September 09, 2014 10:27 AM THE COMMONS ATTHE WILLOWBROOK I nsurance Schedule
Pr oper ty Name & Number Project - IMF00901-02 Date 8/25/2014
Paid Per iod Pr epaid Accr ued Property Insurance I ns Payment Cover ed By I nsurance YTD I nsurance YTD E xpense YTD ( C ash Basi s) I ns Payment 12110-0000 Pr epaid 20150-0000 Accr ual 56105-0000 E xpense Balance @ (Date)
January 0.00 0.00 2,944.01 2,944.01 2,944.01 2,944.01 |Property ManagementandLeasing Proposal February 0.00 0.00 2,944.01 5,888.02 2,944.01 5,888.02 M arch Paid Willis 31,581.00 12/31/13-12/31/14 23,685.75 (23,685.75) (5,888.02) 0.00 2,007.23 7,895.25 April (2,631.75) (21,054.00) 0.00 0.00 2,631.75 10,527.00 M ay (2,631.75) (18,422.25) 0.00 0.00 2,631.75 13,158.75 June (2,631.75) (15,790.50) 0.00 0.00 2,631.75 15,790.50 Jul y (2,631.75) (13,158.75) 0.00 0.00 2,631.75 18,422.25 August (2,631.75) (10,527.00) 0.00 0.00 2,631.75 21,054.00 September 0.00 (10,527.00) 21,054.00 October 0.00 (10,527.00) 21,054.00 November 0.00 (10,527.00) 21,054.00 December 0.00 (10,527.00) 21,054.00
T otal : $0.00 (10,527.00) 0.00 0.00 21,054.00 21,054.00
NOTE: Appendix
110 Insurance THE COMMONS ATTHE WILLOWBROOK Tax Schedule
Property Name & Number Project- IMF00901-02 Date 8/25/2014
Estimate Per iod Pr epaid Accr ued RE Tax |Property ManagementandLeasing Proposal
Tax Payment Cover ed By RE T axes YTD RE T axes YTD Expense YTD ( C ash Basi s) Tax Payment 12115-0000 Pr epaid 20155-0000 Accr ual 57105-0000 Expense Balance @ (Date) $230,404.00 01/01/14-12/31/14 $0.00 $0.00
January (19,200.00) (19,200.00) 19,200.00 19,200.00 February (19,200.00) (38,400.00) 19,200.00 38,400.00 M arch (19,200.00) (57,600.00) 19,200.00 57,600.00 April (19,200.00) (76,800.00) 19,200.00 76,800.00 M ay (19,200.00) (96,000.00) 19,200.00 96,000.00 June (19,200.00) (115,200.00) 19,200.00 115,200.00 Jul y (19,200.00) (134,400.00) 19,200.00 134,400.00 August (19,200.00) (153,600.00) 19,200.00 153,600.00 September (153,600.00) 0.00 153,600.00 October (153,600.00) 0.00 153,600.00 November (153,600.00) 0.00 153,600.00 December (153,600.00) 0.00 153,600.00
T otal : $230,404.00 0.00 (153,600.00) 153,600.00
IMF00901 = 70.37% (13,511.04) NOTE: IFM00902 = 29.63% (5,688.96) Total (19,200.00) Appendix
Taxes 111 THE COMMONS AT WILLOWBROOK | Property Management and Leasing Proposal
Analysis of Other Assets or Other Liabilities
Property Name & Number: Project IMF00901-02 Accrued - Other 20195-0000 Date: 08/25/14
Month Payee Descr iption Account Amount
Aug-14 Rel i ant Energy Accrue Electric 08/04-08/31/14 53104 $ 747.12 Aug-14 Centerpoi nt Accrue Gas 06/14, 07/14, 08/14 53114 $ 61.86 Aug-14 City of Houston Accrue Water 07/29-08/31/14 53130 $ 3,228.23 Aug-14 Transwestern Accrue 08.14 Mgmt Fee 55105 $ 3,181.24 Aug-14 Fi re Protecti on A ccrual 52114 $ 644.75 Aug-14 Landscaping Ext Supplies 52122 $ 151.01 Aug-14 Recurring Audit Fees Posted 06/14 59104 $ 4,071.43
Y TD G/L Bal ance: $ 12,085.63
Note: This schedule can be used for any type of asset or liability account that needs to be supported in detail. The schedule should provide a detail of exactly what makes up the balance in the account. It is not simply a rollforward from last month's or last year's balances.
Other Liabilities-Accruals
Appendix 112 THE COMMONS AT WILLOWBROOK | Property Management and Leasing Proposal
Analysis of AP Tenants
Property Name & Number: Project IMF00901-02 20147-0000 Accrued Qtrly Rec Date: 8/25/2014
Month Payee Descr iption Amount
Dec-13 various tenants 2013 4th Q CAM accrual (8,601.91) M ar-14 various tenants Rev 4th Q CA M accrual 8,601.91 M ar-14 various tenants 1st Q CA M accrual (7,972.60) Jun-14 various tenants Rev 1st Q CA M accrual 7,972.60 Jun-14 various tenants 2nd Q CAM accrual (11,729.26) various tenants Rev 2nd Q CAM accrual various tenants 3rd Q CAM accrual various tenants 3rd Q CA M accrual Rev various tenants 4th Q CAM accrual Y TD G/L Bal ance: ($11,729.26)
Note:
Appendix 113 THE COMMONS AT WILLOWBROOK | Property Management and Leasing Proposal
Schedule of Property Tax Refund
Property Name & Number: I M F00901-02 Aug-14 20157-0000
M onth Fr om Descr iption Amount 14-Feb Harris County 2012 Tax Refund 6,274.37 14-Feb Spring Branch 2012 Tax Refund 6,860.58 14-M ar Spring Branch M gmt 2012 Tax Refund 491.97 14-M ar Spring Branch I SD 2013 Tax Refund 4,183.50 14-Apr Mike Sullivan Tax 2013 Tax Refund 3,825.27
Y TD G/L Bal ance: 21,635.69
Note: Under Review with Asset Manager 08.14
Appendix 114 THE COMMONS AT WILLOWBROOK | Property Management and Leasing Proposal
Calculation of Pr oper ty M anagement F ees
Property Name & Number: Project - IMF00901-02 Aug-14 55105-0000
Month Receipts (1) F ee % (2) Amount
January $44,507.80 3.00% 2,500.00
February 104,489.65 3.00% 3,134.69
M arch 104,489.45 3.00% 3,134.69
April 97,833.85 3.00% 2,935.02
M ay 104,923.85 3.00% 3,147.72
June 119,286.74 3.00% 3,578.60
Jul y 126,237.48 3.00% 3,787.12
August 106,041.23 3.00% 3,181.24
September 3.00% 0.00
October 3.00% 0.00
November 3.00% 0.00
December 3.00% 0.00 Minimum Mgmt Fee . Total $807,810.05 $25,399.08
Reconciling Items: (3)
AR Bal ance @ 12/31/13 0.00 11105-0000 Current AR Bal ance 0.00 11105-0000 Termi nati on f ee 2,610.23 42144-0000 Current Recovery Income True Up & Reversal Prior Year (11,460.95) Recovery Income Adjustment -Margin Tax (7,495.82) 11115-0000 Tenant B Overpaid Rent 0.00 PY CAM accrual JE (36,011.97)
Total Reconciling Items: (52,358.51)
Total Revenue per I ncome Statement: $755,451.54 Per I ncome Statement $755,451.54 Y TD Total f rom I ncome Statement $0.00 (1) Recei pts shoul d be the i ncome recei ved, on whi ch the management f ee i s based. (2) See M anagement A greement f or f urther i nf ormati on. (3) Reconci l i ng i tems shoul d be any i tems whi ch are excl uded f rom revenues bef ore cal cul ati ng the f ee (e.g. accounts recei vabl e bal ances, etc...)
Mgmt Fees
Appendix 115 THE COMMONS AT WILLOWBROOK | Property Management and Leasing Proposal
Property Name & Number: Project - IMF00901-02 Date: 8/25/2014
Cash Receipts Reconciliation:
Cash receipts per activity reconciliation $104,923.85
Less: Prepaid rent amounts 0.00
Less: Security deposits 0.00
Less: T.I. Overage 0.00
Less: Termination Fee 0.00
Other relevant adjustments 1,117.38 Apply prepaid rent
Cash receipts used in management fee calculation $106,041.23
Please note:
- Adjustments should be made to the cash receipts in accordance with the specific requirements of the management fee agreement for the property.
- All "other" adjustments on the schedule need to be explained.
- The schedule in the report should only include information for the current month.
Cash Receipts Recon
Appendix 116 THE COMMONS AT WILLOWBROOK | Property Management and Leasing Proposal
Receivable Summary By Charge Code Property=imf00901,imf00902 AND mm/yy=08/2014-08/2014
Charge Charge Balance Ending Charge Receipt Code Name Forward Balance -23,379.77 0.00 -1,117.38 -22,262.39 cabrent Base Rent 0.00 71,180.80 71,180.80 0.00 cabrfree Free Rent Credit 0.00 0.00 0.00 0.00 caesc Escalation Rent 0.00 0.00 0.00 0.00 cdsec Security Deposit Comm / Res 0.00 0.00 0.00 0.00 cecam CAM Estimate 0.00 11,594.85 11,594.85 0.00 ceins Insurance Estimate 0.00 2,944.55 2,944.55 0.00 ceret Real Estate Tax Estimate 0.00 19,203.65 19,203.65 0.00 cmisc Miscellaneous 0.00 1,117.38 1,117.38 0.00 cpycam Prior Year CAM 0.00 0.00 0.00 0.00 cpyins Prior Year Insurance 0.00 0.00 0.00 0.00 cpyret Prior Year Real Estate Tax 0.00 0.00 0.00 0.00 ctenbill Tenant Billback 0.00 0.00 0.00 0.00 ctermfee Termination Fees 0.00 0.00 0.00 0.00 ctireim TI Reimbursable 0.00 0.00 0.00 0.00 z_cdsecr DO NOT USE Sec Dep - Required 0.00 0.00 0.00 0.00 -23,379.77 106,041.23 104,923.85 -22,262.39
Appendix 117 THE COMMONS ATTHE WILLOWBROOK RENT ROLL
Rent Roll Summary Page 1 of 3 Property = imf00901,imf00902 As of 08/31/2014 Report Created Sep 9 2014 10:30AM
Base Rent CAM Real Estate Tax Insurance Utilities Sec Dep/LOC Gross Rent |Property ManagementandLeasing Proposal Rolling 12 Months Gross Free Net Per Per Per Per Per Security Letter of Per Property Monthly Rent Rent Rent SF/Year Monthly SF/Year Monthly SF/Year Monthly SF/Year Monthly SF/Year Deposit Credit Monthly SF/Year Building - 1 (imf00901) 49,755.60 607,267 - 607,267 4.15 8,019.00 0.66 13,511.00 1.11 2,072.00 0.17 - - - - 73,357.60 6.02 Building - 2 (imf00902) 21,425.40 229,950 - 229,950 4.22 3,575.85 0.70 5,692.65 1.11 872.55 0.17 - - 15,226.25 - 31,566.45 6.15 Grand Total 71,181.00 837,217 - 837,217 4.17 11,594.85 0.67 19,203.65 1.11 2,944.55 0.17 - - 15,226.25 - ######## 6.05
Physical Occupancy - Units Leased Occupancy - Units Property Total Occupied % Vacant % Total Leased % Available % Building - 1 (imf00901) 1 1 100.00% - 0.00% 1 1 100.00% - 0.00% Building - 2 (imf00902) 2 2 100.00% - 0.00% 2 2 100.00% - 0.00% Grand Total - Units 3 3 100.00% - 0.00% 3 3 100.00% - 0.00%
Physical Occupancy - Square Feet Leased Occupancy - Square Feet Property Total Occupied % Vacant % Total Leased % Available % Building - 1 (imf00901) 146,340 146,340 100.00% - 0.00% 146,340 146,340 100.00% - 0.00% Building - 2 (imf00902) 61,620 61,620 100.00% - 0.00% 61,620 61,620 100.00% - 0.00% Grand Total - Square Feet 207,960 207,960 100.00% - 0.00% 207,960 207,960 100.00% - 0.00% Appendix 118 THE COMMONS ATTHE WILLOWBROOK
Rent Roll Page 2 of 3 Building - 1 (imf00901) As of 08/31/2014 Report Created Sep 9 2014 10:30AM Lease Charges Base Rent CAM Real Estate Tax Insurance Utilities Gross Rent Security Fixed Pro |Property ManagementandLeasing Proposal Square Square Start End Amend Per % Rent Rolling Per Per Per Per Per Deposit Rata Percent Per Feet Charge Type Unit(s) Feet Date Date Type Monthly Annualized SF/Year Bump 12 Months SF/Year Monthly SF/Year Monthly SF/Year Monthly SF/Year Monthly SF/Year Letter of Share Occupancy Monthly SF/Year imf00901 - Current
Tenant A (t0050123) 12/1/2013 1/31/2019 49,755.60 597,067.20 4.08 607,267.10 4.15 8,019.00 0.66 13,511.00 1.11 2,072.00 0.17 - - - 0.00% 100.00% 73,357.60 6.02 146 ,340 146,340 Base Rent 100 146,340 12/1/2013 1/31/2015 Ren 49,755.60 597,067.20 4.08 250,270.67 100 146,340 2/1/2015 1/31/2016 Ren 51,219.00 614,628.00 4.20 2.94% 356,996.43 100 146,340 2/1/2016 1/31/2017 Ren 52,682.40 632,188.80 4.32 2.86% - 100 146,340 2/1/2017 1/31/2018 Ren 54,145.80 649,749.60 4.44 2.78% - 100 146,340 2/1/2018 1/31/2019 Ren 55,609.20 667,310.40 4.56 2.70% -
imf00901 - Total - Base Rent 49,755.60 607,267.10 imf00901 - Total 49,755.60 607,267.10 4.15 8,019.00 0.66 13,511.00 1.11 2,072.00 0.17 - - - S 73,357.60 6.02 - - LOC
Physical Occupancy Leased Occupancy Total Occupied % Vacant % Total Leased % Available % Units 1 1 100.00% - 0.00% 1 1 100.00% - 0.00% Square Feet 146,340 146,340 100.00% - 0.00% 146,340 146,340 100.00% - 0.00% Appendix 119 THE COMMONS ATTHE WILLOWBROOK |Property ManagementandLeasing Proposal
Rent Roll Page 3 of 3 Building - 2 (imf00902) As of 08/31/2014 Report Created Sep 9 2014 10:30AM Lease Charges Base Rent CAM Real Estate Tax Insurance Utilities Gross Rent Fixed Pro Square Square Start End Amend Per % Rent Rolling Per Per Per Per Per Security Deposit Rata Percent Per Feet Charge Type Unit(s) Feet Date Date Type Monthly Annualized SF/Year Bump 12 Months SF/Year Monthly SF/Year Monthly SF/Year Monthly SF/Year Monthly SF/Year Letter of Credit Share Occupancy Monthly SF/Year imf00902 - Current
Tenant A (t0050095) 10/1/2004 6/30/2015 14,335.20 172,022.40 3.96 143,782.06 3.96 2,379.00 0.66 4,011.00 1.11 615.00 0.17 - - 5,000.00 S 0.00% 70.50% 21,340.20 5.90 43 ,440 43,440 Base 100 43,440 4/1/2014 6/30/2015 O 14,335.20 172,022.40 3.96 143,782.06
Tenant B (t0107680) 2/1/2014 2/28/2019 7,090.20 85,082.40 4.68 86,167.75 4.74 1,196.85 0.79 1,681.65 1.11 257.55 0.17 - - 10,226.25 S 0.00% 29.50% 10,226.25 6.75 18 ,180 18,180 Base Rent 190 18,180 2/1/2014 2/28/2015 O 7,090.20 85,082.40 4.68 42,753.91 190 18,180 3/1/2015 2/29/2016 O 7,272.00 87,264.00 4.80 2.56% 43,413.84 190 18,180 3/1/2016 2/28/2017 O 7,453.80 89,445.60 4.92 2.50% - 190 18,180 3/1/2017 2/28/2018 O 7,635.60 91,627.20 5.04 2.44% - 190 18,180 3/1/2018 2/28/2019 O 7,817.40 93,808.80 5.16 2.38% -
imf00902 - Total - Base Rent 21,425.40 229,949.81 imf00902 - Total 21,425.40 229,949.81 4.22 3,575.85 0.70 5,692.65 1.11 872.55 0.17 - - 15,226.25 S 31,566.45 6.15 - - LOC
Physical Occupancy Leased Occupancy Total Occupied % Vacant % Total Leased % Available % Units 2 2 100.00% - 0.00% 2 2 100.00% - 0.00% Square Feet 61,620 61,620 100.00% - 0.00% 61,620 61,620 100.00% - 0.00% Appendix 120 THE COMMONS ATTHE WILLOWBROOK
Property Name & Number: Project - IMF00901-02 |Property ManagementandLeasing Proposal Rent Reconciliation 8/25/2014
Bal ance Per Rent Roll Adjustments Adjusted Bal. Bal ance Per I /S V ari ance
Base Rent 71,181 0 71,181 71,181 0 CAM 11,595 0 11,595 11,595 0 Insurance 2,945 0 2,945 2,945 0 RE Tax 19,204 0 19,204 19,204 0 PY Recovery I ncome 0 0 0 0 TI Income 0 0 0 0 0 M i sc I ncome-Termi nati on f ee 0 0 0 0 I nterest I ncome 0 0 0 0 0
TOTAL 104,924 0 104,924 104,924 0
N ote 1: N ote 2: N ote 3: N ote 4: Run Commercial Rent Roll (Conductor) Appendix 121 THE COMMONS AT WILLOWBROOK | Property Management and Leasing Proposal
1900 West Loop South Suite 1300 Houston, Texas 77027 Phone: 713-270-7700 Fax: 713-271-8063
Friday Flash Report – xxxx 2014
date September 30, 2014
property XYZ
ownership XYZ
property manager LaTisha Staten
company Transwestern Commercial Services
phone 713.272.1206
Project Status Year-to-date Absorption SF % SF Transactions Leased and Occupied 207,690 100.0 Renewals Leased and not 0 0 Expansions Occupied Vacant – lease under 0 0 New Leases negotiation Vacant – available for 0 0 Terminations lease Total Project 207,690 100.0% Net Absorption
Operations: Summary of significant physical maintenance or critical operational issues: • Fountain is being enjoyed daily by the community; handling maintenance in-house until new vendor/contract is in place. • Security Guard service added to project resulting in only one attempted car break-in. • Trash compactor site identified; developing site plan with vendor. • Bidding window washing services. • Working with lighting contractor to possibly install energy efficient lighting in each garage. • Working with banner arm supplier/manufacturer on installation of banners.
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1900 West Loop South Suite 1300 Houston, Texas 77027 Phone: 713-270-7700 Fax: 713-271-8063
• Working with valet company to develop satisfactory compromise on complimentary service for retail tenants. • Bulkhead cleats to be installed in December. • Umbrellas on order for common area tables.
Capital Summary of significant capital projects or issues: Improvement: • None at this time.
Leasing: Summary of significant leasing, marketing programs or promotions: • Tenant B is under construction with projected December 1 opening. • Tenant A has signed 1st Amendment and prepaid $30,000 in rent but no additional payments toward required prepaid rent. • Monthly newsletter emailed to 800 recipients. • Two billboard advertisements are in place. Accounting/ Summary of tenant bankruptcies, rent-relief requests or delinquencies: Receivables: • Tenants in default are listed in the Legal Update section of this report.
Legal Update: Summary of significant litigation or legal matters: • Legal proceedings with Tenants D and E are ongoing.
Local Market Summary of significant local market changes affecting the investment: Updates: • There are no significant changes to this market at this time.
Tax Assessments Summary of any status changes or critical issues: & Appeals Update: • Values have not been finalized for 2014.
Additional Other critical issues affecting the investment: Comments: • None at this time.
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Appendix 172 1900 West Loop South, Suite 1300 Transwestern is a privately held real estate firm specializing in agency leasing, property and facilities Houston, Texas 77027 management, tenant advisory, capital markets, research and sustainability. The fully integrated global enterprise leverages competencies in office, industrial, retail, multifamily and healthcare properties to 713.270.7700 add value for investors, owners and occupiers of real estate. As a member of the Transwestern family of For more information, visit us at companies, the firm capitalizes on market insights and operational expertise of independent affiliates specializing in development, real estate investment management and research. Transwestern has 34 U.S. www.transwestern.com offices and assists clients through more than 181 offices in 40 countries as part of a strategic alliance with Paris-based BNP Paribas Real Estate.