OFFERING MEMORANDUM ™

4710 LAKE AVENUE , TX 1 4710 LAKE AVENUE

DALLAS, TX

LISTED BY

NICK DELL Associate - Multifamily 04-05 [email protected] PROPERTY direct (214) 932-9155 SECTION OVERVIEW mobile (214) 232-1532 01 Lic # 676985 (TX) 06-09 AREA SECTION 02 OVERVIEW DAVID HARRINGTON EVP & National Director - Multifamily 10-13 [email protected] SECTION FINANCIAL direct (310) 295-1170 03 OVERVIEW mobile (310) 497-5590 Lic # 01320460 (CA)

™ 3 01 SECTION PROPERTY OVERVIEW PROPERTY DESCRIPTION

• 4710 Lake Avenue is located just northwest of in the extremely desirable Medical District • 4710 Lake Avenue is a three-story, Class-B apartment community that was built in 1976 • The Lake Avenue Apartments is comprised of 100 units with 99 – 1 bed 1 bath units and 1 studio unit Number of Units: 100 • There is ample surface parking for each resident that is accessible by an automatic Year Built: 1976 gate on the southeast portion of the property • The entire community is surrounded by metal fencing for added security Gross Sq. Ft.: 51,521 Average S.F. Per Unit: 515 OPPORTUNITY Lot Size (Acres): 1.72 • 4710 Lake Avenue is located in one of the most attractive submarkets of Dallas, Density: 58 TX • The Medical District has been one of the fastest growing submarkets in the core Dallas area • 4710 Lake Avenue is located right around the corner from UT Southwestern Medical Center campus, Parkland Hospital, Children’s Medical Center, and Airport • An investor has a unique opportunity to acquire a sound, value-add opportunity with significant upside in a vastly growing submarket of Dallas

4 5 7 7 02 SECTION AREA OVERVIEW POINTS OF INTEREST

Medical District Home to several of Dallas’ most important hospitals and research institutions, including UT Southwestern Medical Center, Parkland Memorial Hospital, and Children’s Medical DALLAS, TX Center Dallas, recent years have brought new housing to the neighborhood that largely serves the professionals who work in the district. The area is located northwest of Dallas is a city where big ideas meet big opportunity. The city downtown Dallas, off I-35 in a cluster that branches off . The UT revolves around a bustling downtown area that expands through an Southwestern Medical Center campus anchors the Medical District. assortment of neighborhoods and commercial centers, supported by a network of freeways that exceeds almost any other city. It boasts the largest urban arts district in the nation; where you’d be Oak Lawn more likely to come across a world-class exhibit than a broken pair Oak Lawn is an upscale district known for Cedar Springs Road, the heart of the city’s of chaps. Its past and present is rich in culture, an All-American city gay scene. It’s lined with lively bars and DJ-driven clubs, as well as venues for karaoke, that was built on legends. drag shows, and country and western dancing. Popular hiking and bike trails run alongside nearby Turtle Creek and cut through green spaces like Oak Lawn Park, home to the The central core of Dallas has experienced a steady and stately Arlington Hall events venue. significant growth that speaks to its highly diversified economy. It has become a hub for real estate and business, establishing itself as one of the largest concentrations of corporate headquarters for publicly Uptown traded companies such as American Airlines, Neiman Marcus, Just north of Downtown Dallas, separated by Klyde Warren Park and surplus of food Kimberly-Clark, JCPenney, ExxonMobil and many others. In trucks that line the streets. Uptown is known for its various options for shopping, dining, 2015, Forbes reported that Dallas is “the best place for business and nightlife. Uptown is a more upscale area in Dallas. This area is very common among and careers” in Texas. It’s the perfect blend of big city living and young professionals and is abundant in multi-use developments on the rise. The district is one of the most dense in Dallas and is home to a diverse set of establishments including rustic southern charm. office buildings, residential towers, apartment complexes, retail centers, nightlife strips, and hotels. Uptown is one of the most pedestrian-friendly areas in Dallas. The Dallas economy is expected to grow over the next couple of decades making it the perfect time to not only invest in Dallas real estate but also relocate. As the 9th largest city in the country, Dallas Love Field Airport Dallas has something for everyone. It combines clashing images of The City of Dallas owns and operates Dallas Love Field, one of the finest general-purpose the city skyline and cowboy vibes. Yet, the city of Dallas describes airports in the world. The airfield is located seven miles northwest of the downtown itself best with the motto: “Big Things Happen Here.” central business district and is managed by the City’s Department of Aviation.

Dallas Love Field provides the best that can be offered in a convenient, efficient airport, serving both commercial airline and corporate user needs. Located in the heart of Dallas, Herb Kelleher Way (formerly Cedar Springs Road) at Mockingbird, the airfield is 20 minutes from the Downtown Convention Center, West End, Infomart, and the Dallas Market Center. 7 7 7 DALLAS-FT WORTH MSA

The Dallas-Fort Worth Metroplex is the largest metropolitan area in the South, and fourth DEMOGRAPHICS largest in the United States. It is a center for sporting events, tourism, and manufacturing. POPULATION 1-MILE 3-MILE 5-MILE Dallas and its suburbs have one of the highest concentrations of corporate headquarters in 2010 Census 22,423 141,907 327,253 the United States. Dallas is a center for corporate America. Because of its central location 2018 Estimate 25,149 175,092 391,690 relative to the rest of the United States, Dallas is a popular convention site and site for many corporate headquarters and home to 21 Fortune 500 companies. Business management 2023 Projection 27,683 188,871 419,007 and operations is a major part of the economy. The Metroplex also contains the largest Percent Change: 2010 to 2018 12.16% 23.39% 19.69% Information Technology industry base in the state. On the other end of the business Percent Change: 2018 to 2023 10.08% 7.87% 6.97% spectrum, and on the other side of the Metroplex, the Texas farming and ranching industry is HOUSEHOLDS 1-MILE 3-MILE 5-MILE based in Fort Worth. 2010 Census 8,578 68,354 140,526 2018 Estimate 9,909 88,441 174,728 2023 Projection 10,971 95,911 188,801 Percent Change: 2010 to 2018 15.52% 29.39% 24.34% Percent Change: 2018 to 2023 10.72% 8.45% 8.05%

INCOME 1-MILE 3-MILE 5-MILE 2017 Average $56,556 $111,214 $113,140 Household Income 2017 Median $39,016 $66,215 $63,921 Household Income

8 8 REGIONAL

4710 Lake Ave

LOCAL

4710 Lake Ave

8 9 03 SECTION FINANCIAL OVERVIEW

Investment Summary

Offering Price $7,700,000 Number of Units: 100

Property 4710 Lake Ave Year Built: 1976

Dallas, TX 75219 Gross Sq. Ft.: 51,521 List Price: $7,700,000 Price Per Unit $77,000 Average S.F. Per Unit: 515 Price Per S.F. $149.45 Lot Size (Acres): 1.72 Price Per Unit: $77,000 APN: 00-00021-046-300-00-00 Density: 58 Price Per Foot: $149.45 Number of Units: 100 Year Built: 1976 UNIT MIX & SCHEDULED INCOME Totals Units Unit Mix Unit Mix Current Avg Rent Current Monthly Rent Market Rent Market Monthly Rent 74 1+1 74% $707 $52,310 $1,000 $74,000

26 (Currently Vacant) 1+1 - V 26% $0 $0 $1,000 $26,000

Scheduled Monthly Rent: $52,310 $100,000

Scheduled Yearly Rent: $627,720 $1,200,000

10 Current Annual Operating Expenses

% of SGI Current Per Unit Property Taxes 2.719% x Sale Price 24.93% $156,488 $1,565 Off-Site Management 5.0% x GOI 5.00% $31,386 $314 Insurance $0.45 x GSF 3.69% $23,184 $232 Reserves $250 x Units 3.98% $25,000 $250 On-Site Management Actual 2018 T-3 4.82% $30,236 $302 Repairs & Maintenance Actual 2018 T-3 15.38% $96,548 $965 Make-Ready Actual 2018 T-3 16.53% $103,744 $1,037 Landscaping Actual 2018 T-3 1.15% $7,200 $72 Pest Control Actual 2018 T-3 0.16% $977 $10 Utilities Actual 2018 T-3 13.68% $85,884 $859 General Administration Actual 2018 T-3 1.40% $8,784 $88 Total Expenses 90.71% $569,431 $5,694 Current Per Unit % of SGI Non-controllable expenses: Taxes, Ins., Reserves: $204,672 $2,047 32.6% Total Expense without Taxes $412,943 $4,129 65.78%

11 RENT ROLL

Unit Mix Rent Market Rent Unit Mix Rent Market Rent Unit Mix Rent Market Rent 101 1+1 $850 $1,000 135 1+1 $795 $1,000 231 1+1 $775 $1,000 102 1+1 $795 $1,000 136 1+1 $495 $1,000 232 - V 1+1 - V $0.00 $1,000 103 1+1 $820 $1,000 137 1+1 $795 $1,000 233 1+1 $795 $1,000 104 1+1 $750 $1,000 138 1+1 $820 $1,000 234 1+1 $475 $1,000 105 1+1 $495 $1,000 201 1+1 $795 $1,000 235 1+1 $805 $1,000 106 1+1 $820 $1,000 202 1+1 $795 $1,000 236 1+1 $795 $1,000 107 - V 1+1 - V $0.00 $1,000 203 1+1 $820 $1,000 237 1+1 $475 $1,000 108 1+1 $795 $1,000 204 - V 1+1 - V $0.00 $1,000 238 1+1 $795 $1,000 109 1+1 $795 $1,000 205 - V 1+1 - V $0.00 $1,000 239 1+1 $375 $1,000 110 1+1 $795 $1,000 206 1+1 $775 $1,000 301 - V 1+1 - V $0.00 $1,000 111 1+1 $750 $1,000 207 1+1 $795 $1,000 302 1+1 $795 $1,000 112 1+1 $795 $1,000 208 1+1 $800 $1,000 303 1+1 $800 $1,000 113 - V 1+1 - V $0.00 $1,000 209 1+1 $795 $1,000 304 1+1 $795 $1,000 114 1+1 $795 $1,000 210 1+1 $795 $1,000 305 - V 1+1 - V $0.00 $1,000 115 1+1 $795 $1,000 211 1+1 $795 $1,000 306 - V 1+1 - V $0.00 $1,000 116 1+1 $750 $1,000 212 1+1 $795 $1,000 307 - V 1+1 - V $0.00 $1,000 117 1+1 $795 $1,000 213 - V 1+1 - V $0.00 $1,000 308 - V 1+1 - V $0.00 $1,000 118 - V 1+1 - V $0.00 $1,000 214 - V 1+1 - V $0.00 $1,000 309 - V 1+1 - V $0.00 $1,000 119 - V 1+1 - V $0.00 $1,000 215 1+1 $775 $1,000 338 1+1 $475 $1,000 120 1+1 $800 $1,000 216 - V 1+1 $0.00 $1,000 311 1+1 $600 $1,000 121 1+1 $775 $1,000 217 1+1 $475 $1,000 312 1+1 $600 $1,000 122 1+1 $950 $1,000 218 1+1 $775 $1,000 336 1+1 $450 $1,000 123 1+1 $805 $1,000 219 - V 1+1 - V $0.00 $1,000 337 1+1 $450 $1,000 124 1+1 $775 $1,000 220 - V 1+1 - V $0.00 $1,000 315 1+1 $510 $1,000 125 1+1 $820 $1,000 221 1+1 $800 $1,000 326 1+1 $495 $1,000 126 - V 1+1 - V $0.00 $1,000 222 1+1 $475 $1,000 327 1+1 $450 $1,000 127 1+1 $795 $1,000 223 - V 1+1 - V $0.00 $1,000 334 1+1 $795 $1,000 128 - V 1+1 - V $0.00 $1,000 224 - V 1+1 - V $0.00 $1,000 319 1+1 $745 $1,000 129 - V 1+1 - V $0.00 $1,000 225 1+1 $775 $1,000 321 1+1 $450 $1,000 130 - V 1+1 - V $0.00 $1,000 226 1+1 $795 $1,000 323 1+1 $400 $1,000 131 - V 1+1 - V $0.00 $1,000 227 1+1 $795 $1,000 324 1+1 $425 $1,000 132 1+1 $795 $1,000 228 1+1 $750 $1,000 325 - V 1+1 - V $0.00 $1,000 133 - V 1+1 - V $0.00 $1,000 229 1+1 $800 $1,000 Totals $52,310 $100,000 134 1+1 $795 $1,000 230 1+1 $800 $1,000 Averages $523 $1,000

12 SUBJECT PROPERTY

MAPLE AVE ±17,000 VPD

13 MATTHEWS™ PROPERTY MANAGEMENT We run your business with the future in mind

24/7 Resident Service Requests Vendor Management Residents are able to submit maintenance Oversee and supervise vendors, analyze requests 24/7 through our online portal. contracts, and negotiate fees.

Rent Collection & Cash Management Financial Reporting & Accounting We ensure timely rent collection through Detailed accounting of all income, expenses, electronic payment options providing the and capital expenditures through dynamic funds necessary to manage all bills and and insightful monthly reporting. payments.

Tenant Screening & Credit Checks Define Optimal Maintenance Plan We ensure timely rent collection through Matthews™ coordinates all on-site electronic payment options providing the maintenance and achieves optimal pricing funds necessary to manage all bills and through established rates and relationships payments. with preferred vendors.

Management Quote: • Rate: 8% of Effective Gross Income for this property

Management quote provided by Matthews Asset Services based on property information at this time. Actual rates and terms will vary based on property information at closing. Asset services takes a long-term approach to management by creating consistent value for your property through effective leasing strategies, uncovering new sources of revenue, reducing expenses, and minimizing risks.

Please contact Tim Woods or Cesar Ponce at the information below: Tim Woods: (310) 919-5725 or [email protected] ™ Cesar Ponce: (310) 919-5786 or [email protected] CONFIDENTIALITY & DISCLAIMER STATEMENT

This Offering Memorandum contains select information pertaining to the business and affairs of located at 4710 Lake Ave, Dallas TX 75219 (“Property”). It has been prepared by Matthews Retail Advisors. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Matthews Retail Advisors. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence.

By acknowledging your receipt of this Offering Memorandum for the Property, you agree:

1. The Offering Memorandum and its contents are confidential;

2. You will hold it and treat it in the strictest of confidence; and

3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller.

Owner and Matthews Retail Advisors expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered.

If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum.

A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Matthews Retail Advisors or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property.

This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum.

15 LISTED BY OFFERING MEMORANDUM

NICK DELL Associate - Multifamily [email protected] direct (214) 932-9155 mobile (214) 232-1532 Lic # 676985 (TX)

DAVID HARRINGTON EVP & National Director - Multifamily [email protected] direct (310) 295-1170 mobile (310) 497-5590 Lic # 01320460 (CA)

4710 LAKE AVENUE ™ DALLAS, TX 11-2-2015 Information About Brokerage Services Texas law requires all real estate license holders to give the following informaƟon about brokerage services to prospecƟve buyers, tenants, sellers and landlords.

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

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

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

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

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

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

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

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

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

Kyle Matthews/Matthews Retail Group Inc. 678067 [email protected] (310) 919-5757 Licensed Broker /Broker Firm Name or License No. Email Phone Primary Assumed Business Name Kyle Matthews 678067 [email protected] (310) 919-5757 Designated Broker of Firm License No. Email Phone

Licensed Supervisor of Sales Agent/ License No. Email Phone Associate

Sales Agent/Associate’s Name License No. Email Phone

Buyer/Tenant/Seller/Landlord Initials Date

Regulated by the Texas Real Estate Commission InformaƟon available at www.trec.texas.gov IABS 1-0