Kingsgate Apartments Offering Brochure

KINGSGATE APARTMENTS OFFERING BROCHURE

96 UNITS A Multifamily Investment Opportunity with value-add potential in Beaumont, Texas KINGSGATE APARMENTS

PROPERTY OVERVIEW INVESTMENT HIGHLIGHTS Kingsgate Apartments is a 96-unit , Class A, multifamily asset located in northwest Beaumont, Texas. The City of Beaumont is • Class “A” apartment community well in southeast Texas minutes from the Louisiana border, 90 miles (1 located on N. Major Dr. in northwest hour) Northeast of Houston, with a population of (2014) 117,769. Beaumont, TX Beaumont is one of the three neighboring cities along with Port Arthur and Orange, forming: ”The Golden Triangle”. • Impeccably maintained with low-density The property benefits from an excellent location at the intersection layouts of North Major Dr. and State Highway 105, which receives an average daily traffic count of over 13,800 vehicles. Interstate 10 is 8 miles south of the property and Highway 287 is 2.5 miles • Opportunity to increase income with east. Kingsgate was built in 1999 and constructed with brick and minor interior upgrades hardiplank exteriors. Occupancy is currently at 98% (August 2015). Currently, there are only 328 apartment units under construction • Few units under construction and none in Beaumont, Texas. With limited exposure to new supply, a new proposed in the immediate submarket owner has the opportunity to raise rental rates.

Residents are within close proximity to major employers including • Near the Port of Beaumont recognized as Memorial Hermann Baptist Hospital (8 miles, 1,620 employees) the busiest military port in the world and Christus St. Elizabeth Hospital (6 miles, 1,574 employees), combined with the Port of Port Arthur, ExxonMobil Oil Corporation (10 miles, 2,000 employees and 1,000 the 4th largest port in tonnage in the U.S. contractors) among many others.

Beaumont has a rich history in the oil industry and an abundance • Excellent proximity to high-end retail of museums, parks, and retail venues. A few noteworthy include: and entertainment venues including the Parkdale Mall (4 minutes), McFaddin-Ward House (13 minutes) and 1.35 million SF Parkdale Mall Texas Energy Museum (15 minutes).

With a strong employment base surrounding the property and few • Located within minutes of major comparable units being delivered to the submarket, Kingsgate employers and medical facilities Apartments is exceptionally positioned to capture increased rents through a minor value-add program. • Within the recognized Beaumont I.S.D. (11 Exemplary Schools)

PRICE TBD • Available All Cash PRICE PER UNIT/ SF TBD TERMS All Cash

2 INTERIOR FEATURES • Open Concept • Two-tone paint Design • Walk-in closets • Washer/Dryers* • Elegant Crown • Bookshelves Molding • Patios/ Balconies • High-grade • Frost Free carpets Refrigerators with • Ceiling Fans Ice Maker • Nine-foot ceilings • Garbage • GE appliances disposals • Double-sink • Dishwashers Vanities • Kitchen pantries • Computer Desk • Faux Wood Area Flooring * • Mini-blinds * in select units

COMMUNITY AMENITIES • Resort-Style • 24-Hr Fitness Swimming Pool Center • Custom Laundry • Picnic Areas Facilities • Outdoor Grills • Perimeter fence • Valet Trash • Limited Access Service Gates • Covered Parking • Pet Park • 24-Hr Emergency • Pet Shower Maintenance • Car Care Center • Concierge Services • Boat & RV Parking • Playground • Business Center 3 • Wi-Fi pool side KINGSGATE 5750 n. major dr. | beaumont, texas | 77713 APARTMENTS SITE INFORMATION

ADDRESS UTILITIES 5750 N. Major Dr. Beaumont, TX 77713 Electrical Individually metered PROPERTY HVAC Individual climate-controlled units Units 96 Total Rentable Sf 83,808 Water Individual hot water heaters Year Built 1999 Number of Buildings 7 + office # of Gallons 38 Gallons per individual heater Avg. Unit Sf 873 Stories 2 Electric Electric heated water

Avg. Rent / Unit $904 Lot Size (Acres) 5.68 RUBS Water and Sewer

Avg. Rent / Sf $1.04 Density (Units / Acre) 16.90 Full-size W/D connections 48 units CONSTRUCTION Stackable W/D connections 24 units Style Garden-style Units with no connections 24 units (All 1 BR) Foundation Concrete slab PROPERTY STAFF Framing Wood Property Manager 1 Exterior Brick and Hardiplank siding Lead Maintenance 1 Roof Pitched with composite shingles TOTAL 2 Paving Concrete DEPOSITS/OTHER FEES Wiring Copper & SER Cable feed Application Fee $35 per applicant HVAC Individual ground-mounted units (non-refundable) Plumbing Copper-PVC $50 per couple SCHOOLS Administration Fee $75 School District Beaumont I.S.D. 1 Bedroom Deposit $200 Elementary Guess 2 Bedroom Deposit $300 Middle MLK 3 Bedroom Deposit $400 High West Brook or Central Covered Parking $30 (per month) PARKING Pet Deposit $400 Spaces 153 uncovered spaces/ 38 covered (8 handicap) Non-refundable $300 Ratio 2.07 spaces per unit Pet Rent $10 per month Restrictions No aggressive breeds

4 KINGSGATE 5750 n. major dr. | beaumont, texas | 77713 APARTMENTS FLOORPLANS

5 KINGSGATE 5750 n. major dr. | beaumont, texas | 77713 APARTMENTS SITE PLAN

BARBECUE GRILLS

PICNIC AREA

CAR CARE CENTER PLAYGROUND

PROFORMA NOTES UNIT MIX DOG PARK

BARBECUE GRILLS / PICNIC AREA

6 KINGSGATE 5750 n. major dr. | beaumont, texas | 77713 APARTMENTS PROFORMA: UNIT MIX: PROPERTY TAXES

ANNUAL MONTHLY PER UNIT PER SF Gross Potential Rent $1,167,816 $97,318 $12,165 $13.93 Loss/Gain to Lease 2.00% (23,356) (1,946) (243) (0.28) Adjusted Gross Potential Rent 1,144,460 95,372 11,921 13.66 Vacancy Loss 5.00% (57,223) (4,769) (596) (0.68) Concessions 0.14% (1,638) (136) (17) (0.02) Models 0.92% (10,514) (876) (110) (0.13) Employee Units 0.08% (948) (79) (10) (0.01) Non Revenue Units 0.56% (6,380) (532) (66) (0.08) Total Rental Income 1,067,757 88,980 11,122 12.74 Other Income 72,693 6,058 757 0.87 Utility Reimbursements 48,010 4,001 500 0.57 Total Other Income 120,703 10,059 1,257 1.44 Effective Gross Income 1,188,460 99,038 12,380 14.18 Operating Expenses Payroll & Benefits 115,200 9,600 1,200 1.37 General & Administrative 18,720 1,560 195 0.22 Repairs & Maintenance 47,520 3,960 495 0.57 Contract Services 49,440 4,120 515 0.59 Advertising & Promotion 7,200 600 75 0.09 Controllable Expenses 238,080 19,840 2,480 2.84 Utilities 68,586 5,715 714 0.82 Insurance 48,000 4,000 500 0.57 Management Fee 35,654 2,971 371 0.43 Gross Receipts Tax 6,834 569 71 0.08 Property Taxes 118,730 9,894 1,237 1.42 Operating Expenses Before Reserves (515,883) (42,990) (5,374) (6.16) Replacement Reserves 24,000 2,000 250 0.29 Total Operating Expense (539,883) (44,990) (5,624) (6.44) NET OPERATING INCOME $648,577 $54,048 $6,756 $7.74

Post- Post- Appraisal District Jefferson County Market Market Avg Upgrade Upgrade Unit # of % of Rent / Rent / Unit Rent / Rent / 2014 Tax Rate 2.744638% Description Units Total Unit SF SF Unit SF Property ID # 128215

1Bd/1Bth (downstairs) 16 16.7% 568 $679 $1.20 $758 $1.33 Land $298,160

1Bd/1Bth (upstairs) 16 16.7% 568 $729 $1.28 $815 $1.44 Improvements $3,634,470

1Bd/1Bth (downstairs) 8 8.3% 685 $769 $1.12 $861 $1.26 Total 2015 Tax Value $3,932,630

1Bd/1Bth (upstairs) 8 8.3% 685 $789 $1.15 $884 $1.29

2Bd/2Bth 24 25.0% 963 $959 $1.00 $1,080 $1.12

3Bd/2Bth 24 25.0% 1,315 $1,199 $0.91 $1,344 $1.02

Totals/Avg 96 100% 873 $904 $1.04 $1,014 $1.16

1. Gross Potential Rent is per the Post-Upgrade rent schedule 2. Other Income per the T12 actuals through Aug. 2015 3. Utility Reimbursements: 70% recapture of Utilities expense 4. Utilities expense per the T12 actuals through Aug. 2015 5. Management Fee is based on 3.00% of Effective Gross Income 6. Property Taxes: 110% of 2015 assessed tax value at 2014 tax rate 7. Replacement reserves are estimated to be $250 per unit and do not reflect actual capital expenditures 7 KINGSGATE 5750 n. major dr. | beaumont, texas | 77713 APARTMENTS AREA DEMOGRAPHICS

Radius 1 Mile 3 Mile 5 Mile

2015 Population by Hispanic Origin 606 2,629 8,631

2015 Population by Race 5,958 29,226 75,398

White 3,360 56.39% 16,204 55.44% 42,338 56.15%

Black 2,093 35.13% 10,598 36.26% 28,386 37.65%

American Indian and Alaskan 47 0.79% 206 0.70% 587 0.78%

Asian 327 5.49% 1,666 5.70% 2,792 3.70%

Hawaiian and Pacific Islander 3 0.05% 13 0.04% 48 0.06%

Other Race 128 2.15% 538 1.84% 1,246 1.65%

Households

Owner Occupied 1,106 42.26% 6,921 55.63% 18,322 59.37%

Renter Occupied 1,511 57.74% 5,520 44.37% 12,539 40.63%

2015 Households by HH Income 2,615 12,442 30,861

Income Less Than $25,000 682 26.08% 3,167 25.45% 8,890 28.81%

Income: $25,000 - $50,000 500 19.12% 2,804 22.54% 7,409 24.01%

Income: $50,000 - $75,000 520 19.89% 2,240 18.00% 5,637 18.27%

Income: $75,000 - $100,000 371 14.19% 1,050 8.44% 2,532 8.20%

Income: $100,000 - $125,000 196 7.50% 877 7.05% 1,990 6.45%

Income: $125,000 - $150,000 124 4.74% 624 5.02% 1,310 4.24%

Income: $150,000 - $200,000 140 5.35% 741 5.96% 1,312 4.25%

Income: $200,000 or more 82 3.14% 939 7.55% 1,781 5.77%

2015 Avg Household Income $69,581 $78,869 $69,639

2015 Med Household Income $55,080 $52,708 $46,869

Source: CoStar Realty Information, Inc., Aug. 2015

8 Park HollowKINGSGATE APARMENTS 5750 n. major dr. | beaumont, texas | 77713 APARTMENTS RENT COMPARABLES HELBIG RD. 2

E AS C 3 TE O X F NC W OR Y D RD. PARKDALE MALL 6

DOWLEN RD.

5 1 N. MAJOR DRIVE MAJOR N.

TOTAL # OF YEAR UNIT # OF % OF AVG MARKET $MARKET PROPERTY UNITS OCC. BUILT NRSF TYPE UNITS TOTAL UNIT SF RENT RENT PSF

The Chelsea 144 97% 2011 126,280 1BR 72 50% 679 $850 $1.25 1 4630 Collier St. 2BR 56 39% 1,036 $1,010 $0.97 3BR 16 11% 1,211 $1,301 $1.07 Totals / Avg 144 877 $962 $1.10

Beaumont Trace 160 94% 2009 148,496 1BR 80 50% 736 $913 $1.24 2 6105 N. Major Dr. 2BR 64 40% 1,069 $1,180 $1.10 3BR 16 10% 1,328 $1,470 $1.11 Totals / Avg 160 982 $1,076 $1.16

The Preserve at Old Dowlen 96% 2008 292,000 1BR 155 51% 745 $1,160 $1.56 5350 Old Dowlen Rd. 2BR 125 41% 1,152 $1,505 $1.31 3 3BR 24 8% 1,348 $1,459 $1.08 Totals / Avg 304 960 $1,326 $1.38

Sienna 176 95% 2008 160,000 1BR 96 55% 669 $862 $1.29 4 6155 Sienna Trail 2BR 80 45% 948 $1,080 $1.14 Totals / Avg 176 796 $961 $1.21

West End Lodge 360 95% 2007 289,872 1BR 180 50% 681 $937 $1.38 5 4215 N. Major Dr. 2BR 180 50% 1,037 $1,124 $1.08 Totals / Avg 360 859 $1,030 $1.20

Stoneleigh at Major 288 94% 2010 1BR 168 58% 690 $975 $1.41 4550 N. Major Dr. 2BR 104 36% 1,021 $1,221 $1.20 6 3BR 16 6% 1,150 $1,666 $1.45 Totals / Avg 288 835 $1,103 $1.32

TOTALS / AVERAGE 95% 885 $1,076 $1.23

Kingsgate 96 98% 1999 83,808 1BR 48 50% 607 $729 $1.20 5750 N. Major Dr. 2BR 24 25% 963 $959 $1.00 3BR 24 25% 1,315 $1,199 $0.91 Totals /Avg 96 873 $904 $1.04

9 KINGSGATE APARMENTS

10 KINGSGATE APARMENTS

11 KINGSGATE 5750 n. major dr. | beaumont, texas | 77713 APARTMENTS

MEMORIAL HERMANN BAPTIST HOSPITAL MAJOR EMPLOYERS # of Company Miles Employees

Memorial Hermann Baptist Hospital 7.7 1,620

Invensys Process Systems Inc. 8.9 2,000

1,183 employees Lamar University 11.1 15,000 students

Dragon Products, Ltd. 6.4 1,000

2,000 employees ExxonMobil Oil Corporation 9.7 1,000 contractors LAMAR UNIVERSITY

Jefferson County 8.4 1,206 EXXONMOBIL OIL CORPORATION City of Beaumont 8.4 1,355

various Conn’s Appliances 4,615 locations Beaumont Independent School 3.8 2,536 District

Christus St. Elizabeth Hospital 5.9 1,574

CHRISTUS ST. ELIZABETH HOSPITAL Source: REscour, August 2015

JEFFERSON COUNTY COURT HOUSE

12 KINGSGATE 5750 n. major dr. | beaumont, texas | 77713 APARTMENTS

AREA ATTRACTIONS

Parks and Recreation Miles

Morgan Park 5.7

Quinn Soccer Complex 2.9

Henry Homberg Golf Course 11.3

Beaumont Country Club 6.6

Ida Reed Dog Park 5.8

Beautiful Mountain Skate Plaza 7.7

Tyrrell Park 10.5

Gulf Terrace Park 4.0

Retail / Entertainment

Parkdale Mall 2.6

Texas Energy Museum/ The Edison Museum 7.8

Beaumont Botanical Gardens 11

McFaddin Ward House 6.6

Julie Roberts Theater & Jefferson Theater 8

Spindletop-Gladys City Boomtown Museum 13.7

Fire Museum of Texas 7.5

Educational Institutions/ Event Centers

Lamar University 11.1

MCM Elegante’ Hotel & Conference Center 8

The Event Centre 7.9

Broussard’s Centre’ 6.7

Beaumont Civic Center 8.0

Source: REscour, August 2015

13 KINGSGATE 5750 n. major dr. | beaumont, texas | 77713 APARTMENTS LOCATION MAP

KINGSGATE APARMENTS

45 287 96 Conroe

45 The 59 Woodlands 10 90 Beaumont

Intercontinental Airport 8 6 Houston 10 Port of Baytown Houston 124 610

Hobby Airport Sugarland

288 Galveston

14 KINGSGATE 5750 n. major dr. | beaumont, texas | 77713 APARTMENTS AERIAL MAP

N N. MAJOR DR.

KINGSGATE APARMENTS

N KLEIN PARK MORGAN PARK

PARKDALE MALL KINGSGATE FOLSOM DR.

APARMENTS DOWLEN RD. DOWLEN

BEAUMONT . CBD PORT N. MAJOR DRIVE MAJOR N. D PHELAN BLV OF BEAUMONT MLK JR. PARKWAYBEAUMONT MUNICIPAL AIRPORT COLLEGE ST.

PORT ARTHUR (20 MILES SOUTHEAST) HOUSTON (90 MILES WEST)

15 INVESTMENT CONTACTS PROPERTY TOUR INQUIRIES

Ed Cummins Tim Gregory April Darner Senior Vice President Senior Vice President Marketing Coordinator 713.272.1288 713.272.1224 713.272.1276 [email protected] [email protected] [email protected]

Kenady Davis Vice President 713.231.1655 [email protected]

The information provided herein was obtained from sources believed reliable; however, Transwestern makes no guarantees, warranties or representations as to the completeness or accuracy thereof. The presentation of this property is submitted subject to errors, omissions, change of price or conditions, prior sale or lease, or withdrawal without notice. Copyright © 2015 Transwestern. 10-1035.0610. This offering is submitted and received with the understanding that all offers for the acquisition of the herein described property will be conducted through Transwestern. The Seller, Transwestern expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers to purchase the Property and/or terminate discussions with any entity at any time with or without notice.

1900 West Loop South, Suite 1300 Houston, Texas 77027 | T 713.270.7700 | F 713.271.8172 | www.transwestern.com