WILLIAMSTOWN OFFERS DUE: 5:00 Pm CST, Wed

A 272-Unit Multifamily Offering Brochure Investment Opportunity in Houston, Texas WILLIAMSTOWN OFFERS DUE: 5:00 pm CST, Wed. August 22th, 2012 9

INVESTMENT HIGHLIGHTS • Well maintained multifamily community with very stable occupancy • Immediate upside potential through moderate interior and exterior enhancements • Over $135,000 in recent capital improvements • Variety of desirable floorplans (one and two-bedroom options) with unit sizes ranging from 612 to 1,000 SF • Exceptional location and frontage on Bissonnet St., just east of U.S. Highway 59 • Less than 8 miles from the Westchase District (71,000 employees) and Uptown/Galleria District (80,000 employees) • Just minutes from the Memorial Hermann Hospital Southwest campus (3,000 employees), Houston Baptist University and the recently renovated PlazAmericas (formerly known as Sharpstown Mall) • Available All Cash PROPERTY DETAILS PROPERTY Williamstown PRICE To Be Determined TERMS All Cash ADDRESS 9200 Bissonnet St. Houston, Texas 77074 UNITS 272 YEAR BUILT 1977

OCCUPANCY (Jun 2012) 90% NET RENTABLE SF 205,344 AVG. UNIT SIZE 755 AVG. RENT/UNIT $582 AVG. RENT/SF $0.77 STORIES 2 LOT SIZE 7.94 acres DENSITY 34.3 units / acre

COMMUNITY AMENITIES • Sparkling swimming pool • Clothes care centers • Fitness center • Perimeter fence and access gate • Proximity to major employment, shopping and entertainment centers

INTERIOR FEATURES • Full-size W/D connections * • Bookshelves * • Patios / balconies * • Fully equipped kitchens (FF refrigerator, stove, dishwasher and disposal) • Kitchen pantries • Ceramic tile (bathroom, kitchen and dining room) • Mini-blinds • Two-tone paint • Coat and linen closets * • Walk-in closets

* in select units SITE INFORMATION

ADDRESS: UTILITIES: 9200 Bissonnet St. Electrical Individually metered Houston, Texas 77074 HVAC Individual climate- controlled units PROPERTY: Water Master metered Units 272 Total Rentable SF 205,344 2 Central boilers Year Built 1977 # of Buildings 19 Gas Gas heated water Avg. Unit SF 755 Stories 2 RUBS Water, gas, pest, trash Avg. Rent / Unit $582 Lot Size (acres) 7.94 Full-size W/D connections 176 units Avg. Rent / SF $0.77 Density (units / acre) 34.3 PROPERTY STAFF: CONSTRUCTION: Property Manager 1 Style Garden-style Assist Mgr. / Leasing 1 Foundation Concrete slab Lead Maintenance 1 Framing Wood Make Ready 1 Exterior Brick and wood Porter 1 Roof Pitched with composite shingles Housekeeper 1 Paving Concrete TOTAL 6 Wiring Copper DEPOSITS/OTHER FEES: HVAC Individual ground-mounted units Application Fee (non-refundable) $35 per applicant Plumbing Copper Administration Fee $50 SCHOOLS: 1 Bedroom Deposit $150 School District Alief I.S.D. 2 Bedroom Deposit $250 Elementary Best Pet Deposit $250 Middle Klentzman (Intermediate) / Olle (Middle) (% Non-refundable) 50% High Elsik / Hastings Restrictions No aggressive breeds PARKING: Pet weight limit Under 85 lbs. Spaces 366 uncovered spaces (3 handicap, 7 outside gate) Ratio 1.345 spaces per unit FLOORPLANS

1 Bedroom/1 Bath 1 Bedroom/1 Bath 612 SF 614 SF 1 Bedroom/1 Bath 612 SF

2 Bedroom/1 Bath 838 SF 1 Bedroom/1 Bath 1 Bedroom/1 Bath 646 SF 709 SF N

SITE PLAN

2 Bedroom/2 Bath 2 Bedroom/2 Bath 931 SF 1,000 SF

[email protected]

2 Bedroom/2 Bath 931 SF BISSONNET ST. PROFORMA UNIT MIX ANNUAL MONTHLY Market Market Unit # of % of Avg Rent / Rent / Gross Potential Rent $1,900,680 $158,390 Description Units Total Unit SF Unit SF Est. Increase in Market Rents 4.00% 76,027 6,336 1Bed/1Bath 24 8.8% 612 $520 $0.85 Loss/Gain to Lease 2.00% (39,534) (3,295) 1Bed/1Bath 48 17.6% 612 $525 $0.86 Adjusted Gross Potential Rent 1,937,173 161,431 1Bed/1Bath 24 8.8% 614 $530 $0.86 Vacancy Loss 6.00% (116,230) (9,686) 1Bed/1Bath 1 0.4% 614 $540 $0.88 Concessions 2.00% (77,487) (6,457) 1Bed/1Bath 15 5.5% 646 $540 $0.84 Models 0.74% (6,586) (549) 1Bed/1Bath 48 17.6% 709 $550 $0.78 Bad Debt 2.00% (29,058) (2,421) 2Bed/1Bath 40 14.7% 838 $625 $0.75 Total Rental Income 1,707,812 142,318 2Bed/2Bath 26 9.6% 931 $650 $0.70 2Bed/2Bath 22 8.1% 931 $675 $0.73 Other Income 128,042 10,670 2Bed/2Bath 24 8.8% 1,000 $675 $0.68 Utility Reimbursements 85,032 7,086 Totals/Avg 272 100% 755 $582 $0.77 Total Other Income 213,074 17,756 Effective Gross Income 1,920,886 160,074

Operating Expenses Payroll & Benefits 272,000 22,667 General & Administrative 40,800 3,400 Repairs & Maintenance 122,400 10,200 Contract Services 74,800 6,233 Advertising & Promotion 31,280 2,607 Controllable Expenses 541,280 45,107

Utilities 207,301 17,275 Insurance 122,400 10,200 Management Fee 57,627 4,802 Gross Receipts Tax 11,045 920 Property Taxes 210,090 17,507

Operating Expenses Before Reserves (1,149,742) (95,812) Replacement Reserves 81,600 6,800 Total Operating Expense (1,231,342) (102,612)

NET OPERATING INCOME $689,543 $57,462

PROFORMA NOTES 1. Gross Potential Rent is per the current rent schedule 2. Other Income and Utility Reimbursements are based on trailing twelve actuals through May 2012 3. Utilities expense is based on trailing twelve actuals through May 2012 4. Management Fee is based on 3.00% of Effective Gross Income 5. Property Taxes based on 100% of the 2012 assessed value at the 2011 tax rate 6. Replacement reserves are estimated to be $300 per unit and do not reflect actual capital expenditures

TAX INFORMATION Appraisal District Harris County 2011 Tax Rate 2.802533%

Account # 0430-64000-0013 Land $1,556,415 Improvements $5,940,008 Total 2012 Tax Value $7,496,423

Disclaimer: The proforma is delivered only as an accomodation and neither Seller, Transwestern nor any of their respective affiliates, agents, representatives, employees, parents, subsidiaries, members, managers, partners, shareholders, directors, or officers, makes any representation or warranty regarding such proforma. Purchaser must make its own investigation of the Property and any existing or available financing, and must independently confirm the accuracy of the projections contained in the proforma. RENT COMPARABLES N BEECHNUT ST.

WILLIAMSTOWN 1

WESTWOOD S. GESSNER RD. Market Market COUNTRY Unit Total Avg Rent / Rent / CLUB Property Type Units SqFt Unit SqFt

BISSONNET ST.

6 9200 Bissonnet St. 1 BR 160 645 $534 $0.83 BISSONNET ST. Houston, TX 77074 2 BR 112 913 $651 $0.71 5 Built: 1977 S. BRAESWOOD BLVD.

Occupancy: 90% 2 4 Totals/Avg 272 755 $582 $0.77 3

Market Market Market Market Unit Total Avg Rent / Rent / Unit Total Avg Rent / Rent / Property Type Units SqFt Unit SqFt Property Type Units SqFt Unit SqFt

1 Braeburn Colony 4 Fairfield Trails

8917 S. Gessner 1 BR 117 667 $497 $0.75 10750 Westbrae Pkwy. 1 BR 144 675 $629 $0.93

Houston, TX 77074 2 BR 114 928 $608 $0.66 Houston, TX 77031 2 BR 144 909 $817 $0.90

Built: 1970 3 BR 44 1,111 $719 $0.65 Built: 1984

Occupancy: 90% Occupancy: 95%

Totals/Avg 275 847 $579 $0.68 Totals/Avg 288 792 $723 $0.91

2 Crescent Place 5 The Madison

10222 S. Gessner 1 BR 83 707 $616 $0.87 9701 Forum Park Dr. 1 BR 77 761 $612 $0.80

Houston, TX 77071 2 BR 36 1,003 $719 $0.72 Houston, TX 77036 2 BR 40 1,110 $805 $0.73

Built: 1985 Built: 1983

Occupancy: 92% Occupancy: 82%

Totals/Avg 119 797 $647 $0.81 Totals/Avg 117 880 $678 $0.77

3 Crystal Falls 6 Stoneriver

10950 Westbrae Parkway EFF 32 432 $530 $1.23 8901 Bissonnet St. 1 BR 146 704 $490 $0.70

Houston, TX 77031 1 BR 112 701 $693 $0.99 Houston, TX 77074 2 BR 90 1,058 $611 $0.58

Built: 1984 2 BR 21 1,128 $1,024 $0.91 Built: 1977 3 BR 88 1,250 $725 $0.58

Occupancy: 99% Occupancy: 80%

Totals/Avg 165 704 $703 $1.00 Totals/Avg 324 951 $588 $0.62

DEMOGRAPHICS (Population) SUBMARKET Radius 1 Mile 3 Mile 5 Mile Braeswood/ Fondren SW 2016 Projection 27,406 224,964 548,622 Occupancy +7.6% (annualized) in last 3 months 2011 Estimate 26,338 212,947 512,264 Rental Rates +6.7% (annualized) in last 3 months 2010 Census 27,107 214,108 510,755 Absorption +358 units in last 3 months (1.58% of submarket) Growth 2011 - 2016 4.10% 5.60% 7.10% Occupancy Class A: 81%, Class B: 94%, Class C: 82%, Class D: 71% Growth 2010 - 2011 -2.80% -0.50% 0.30% Averages Size: 838 SF Eff. Rent: $584 Eff. Rate: $0.70 N N

BELLAIRE BLVD.

WILLIAMSTOWN F O N D R E N R D .

BEECHNUT ST. S. GESSNER RD.

BISSONNET ST.

D. BLV S. BRAESWOOD BISSONNET ST. S. B RAES WOO D BL VD. UPTOWN WESTCHASE DISTRICT/ DISTRICT THE GALLERIA N (71,000 EMPLOYEES) WILLIAMSTOWN (80,000 EMPLOYEES)

H IL L C R SHARPSTOWN O F GOLF T

COURSE A V

PLAZAMERICAS E MALL . (FKA: SHARPSTOWN BELLAIRE BLVD. MALL)

F O N D R E N R D . HOUSTON BAYLAND WILLIAMSTOWN MEMORIAL BAPTIST PARK HERMANN UNIVERSITY HOSPITAL SW

S BEECHNUT ST. . G ES S N E R BISSONNET ST.

WESTWOOD D

COUNTRY . CLUB

SOUTHWEST

CORPORATE

CENTER BR U BRAE-BURN AYS AYO BISSONNET ST. COUNTRY B CLUB

FOR MORE INFORMATION, PLEASE CONTACT: Ed Cummins Clint Duncan Senior Vice President Vice President 1900 West Loop South, Suite 1300 Houston, Texas 77027 713.272.1288 713.270.3316 T 713.270.7700 F 713.271.8172 [email protected] [email protected] www.transwestern.net

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 © 2012 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.