MULTIFAMILY OFFERING | SHOWN BY APPT. WITH LISTING AGENTS

INVESTMENT HIGHLIGHTS

Trendy South Central Austin | 255 Units

Tremendous Value Add Opportunity

Excellent Location | 15 Minutes to the CBD, State Capitol, the University of Texas

Easy Access North and South via S. First, S. Congress, IH-35 and MoPac (Loop 1)

One of Austin’s Fastest Growing Submarkets

Convenient Access to Public Transportation Low Density, All Two-Story Garden Style Apartments | 410 Parking Spaces

Shown By Appt. with Listing Agents

739 W. William Cannon Dr. | Austin, TX 78745

Ellen Muskin - 512.343.2700 x1 Daniel Elam - 512.343.2700 x2 [email protected] [email protected]

Investment Opportunity

• The property benefits from high visibility at the quadrant of West William Cannon Drive and South First Street. These thoroughfares provide direct access to the city’s main highways, IH-35, Mopac (Loop 1) and Hwy 71. Downtown and its related amenities are located approximately six miles north via South First Street, with the University of Texas located about eight miles north. The area surrounding fundamentals continue to progress.

• Austin in the second-best place to live in the U.S., according to a new ranking from U.S. News and World Report (Mar. 2016). According to a 2015 report from Money, Austin is the best city in the U.S. for adults ages 20 to 34: “...projected job growth through 2019 is a robust 13.3% - thanks in part to big tech and telecom employers like Dell, IBM and AT&T.”

• The South submarket is experiencing extremely strong rent growth, primarily due to Austin’s thriving apartment outlook; and continued new construction in the Central Business District, which is forcing residents southward in search of affordability.

• According to Austin Investor Interests Report, in 1Q 2016 the Austin area added 2,066 units, with 1,833 units quickly absorbed. There have now been over 3.5 years of positive absorption in the Austin area.

Well located in the rapidly improving South submarket – The Place at West Village is situated in the South submarket, one of the most exciting submarkets in the Austin MSA. This area benefits greatly from the new developments to the north in the eclectic 78704 zip code, and from the south, home of South Park Meadows retail development. The property is at the quadrant of West William Cannon Dr. and South First Street, conveniently situated between IH-35 and Mopac. Downtown is approximately 5 miles to the north, which can easily be accessed without highway use. The University of Texas, one of the largest campuses in the nation with 50,000+ students, is located about 7 miles north.

Value Add Opportunity – The property’s average rental rate is $917/unit, more affordable as compared to the Austin MSA average of $1,167/unit, according to Austin Investor Interests’ (AII) 1Q 2016 Trend Report. Increased rents are achievable with minimal unit enhancements and curb appeal. Rehabbed properties of comparable vintage in this submarket range between $995 - $1,150 for a 1BR and $1,195 - $1,350 for a 2BR. The average annual rent growth in the submarket is 4.6%, according to AII’s 1Q 2016 Trend Report, with a city growth rate of 6.2%. The South submarket occupancy rate averaged 92.4%, just slightly below the city-wide average of 94.1%.

Property Enhancements - The 255-unit community has an average unit size of 699+/- square feet, with a wide variety of 1BR and 2BR units. The roofs are pitched composition shingle. The exteriors are a combination of brick, hardiboard and wood exteriors. Located on 8.7820+/- acres (according to TCAD records), the community consists of 16 two-story buildings with individual HVAC and two central gas boilers. All units enjoy plank faux flooring throughout the kitchens and bathrooms, with the first floor offering additional faux flooring in the living rooms. Kitchens feature new appliance packages, breakfast bars, updated lighting, pantries and some upgraded with modern painted kitchen cabinets. Leasing efforts are enhanced by a fitness center, elegant swimming pool, two clothes care facilities, 16 units with W / D connections and a dog park. Google fiber cable is currently being installed at the property. Major recent renovations of approximately $1.8M include six roofs replaced within the past year, all buildings painted in the last three months, new siding and the parking lot surface coated and striped.

Economic Fundamentals Improving – 2015 Household Average income in a 1-mile radius was $63,323 and $87,787 in a 5-mile radius. Austin added 34,900 net new jobs, or 3.8%, in the 12 months ending in December 2015, making Austin the third fastest growing major metro (U.S Bureau of Labor Statistics). Rents in Austin are forecasted to rise 5% throughout 2016. Austin is ranked at the top of the list of U.S. cities most likely to prosper during the next 10 years (Forbes, America’s Next Boom Town, January 2016). Population within a 1-mile radius grew 11% since 2010, and the Metro Austin population increased over 16% during that same span. The Austin population now exceeds 2 million.

The Place at West Village | 255 Units

Property Features

Vaulted Ceilings in Second Floor Units* Stackable Washer/Dryer Connections* All Electric Gourmet Kitchens | Gooseneck Faucets Pass –Through Breakfast Bars * Cast Iron Tubs with Ceramic Tiled Surrounds City of Austin Programmable Thermostats Wood-Burning Brick Fireplaces * Faux Wood-Look Flooring | Vertical Blinds Spacious Walk-In Closets Multiple Floor Plans to Attract Residents Private Balconies and Patios with Outside Storage Property Abuts South First Street *In Select Units

Full Exterior Painting (Finished 2016) New Roof Replacements - Six Buildings Newly Redecorated Management Office | Coffee Bar & WiFi Centrally Located, Shimmering Swimming Pool Two On-Site Clothes Care Facilities Large, Mature Trees, Landscaping and Xeriscaping Wrought Iron Perimeter Gates

Convenient Access to Public Transportation Fitness Center | Package Holding Area Google Fiber Currently Being Installed Pet Friendly Community and Dog Park Excellent Location to CBD, “78704” Zip, Major Thoroughfares COMMERCIAL

The Place at West Village | 255 Units

MUSKIN

FINANCIAL ANALYSIS

PROPERTY HIGHLIGHTS INVESTMENT OUTLINE UNITS 255 PRICE $24,500,000 BUILT 1983 TERMS Cash or New Loan BUILDINGS 16 Two-Story Garden Style Buildings PROPOSED NEW LOAN 70% LTV / $17,150,000 EXTERIOR Brick & Hardiboard Siding RATE/AMORT/PMT 4.25% / 30Y / $84,368 METERING Electric - Individual TOTAL SQUARE FEET 178,227 +/- HVAC Individual Units - Electric LAND SIZE 8.7820 +/- Acres (TCAD) HOT WATER 2 Gas Boilers PARKING SPACES 410

UNIT MIX

MONTHLY ANNUAL UNIT TOTAL MARKET MARKET MARKET RENT UNITS SF +/- SF +/- RENT RENT RENT SF +/-

52 1 Bed / 1 Bath 518 26,936 $829 $43,108 $517,296 $1.60 31 1 Bed / 1 Bath 577 17,887 $849 $26,319 $315,828 $1.47 56 1 Bed / 1 Bath 664 37,184 $869 $48,664 $583,968 $1.31 28 1 Bed / 1 Bath 725 20,300 $889 $24,892 $298,704 $1.23 40 2 Bed / 1 Bath 850 34,000 $1,014 $40,560 $486,720 $1.19 16 2 Bed / 1 Bath - W/D 850 13,600 $1,044 $16,704 $200,448 $1.23 32 2 Bed / 2 Bath 885 28,320 $1,049 $33,568 $402,816 $1.19 255 699+/- 178,227+/- $917 $233,815 $2,805,780 $1.31

Square footage is approximate. Muskin Commercial, LLC makes no representations or warranties regarding the square footages and has not independently verified this information.

NOTES TO PRO FORMA:

*T-12 Cap Ex Figures are adjusted to Industry Standards **2015 Cap Ex totaled $80,927

PRO FORMA ANALYSIS T-3 Rental Income STABILIZED (Feb—Apr 2016) 2015 Year End INCOME UNDERWRITING Annualized Actuals SCHEDULED MARKET RENT $2,805,780 $2,767,540 $2,699,451 Less: Loss to Lease 3.00% ($84,173) ($111,888) ($119,394) Less: Vacancy 5.00% ($140,289) ($197,564) ($157,973) Less: Concessions 0.25% ($7,014) ($17,056) ($4,586) Less: Employee / Model Units 0.25% ($7,014) ($11,718) ($13,595) Less: Non-Revenue Units / Bad Debt 0.25% ($7,014) $10,335 ($8,456) NET RENTAL INCOME $2,560,274 $2,439,650 $2,395,447 Plus: Laundry Income $25,000 $22,696 $20,571 Plus: Fee Income $80,000 $78,274 $78,603 Plus: RUBS Income $170,000 $153,042 $149,076 Plus: Other Income $30,000 $25,169 $22,127

TOTAL OPERATING INCOME (EGI) $2,865,274 $2,718,831 $2,665,824

T-12 Expenses EXPENSES PER UNIT From Apr 2016 Administrative $176 $45,000 $69,572 $58,880 Advertising & Promotion 157 $40,000 $40,300 $43,572 Payroll $1,150 $293,250 $362,047 $371,763 Repairs & Maintenance $450 $114,750 $114,284 $109,313 Management Fee (3.00%) $337 $85,958 $80,538 $79,874 Utilities $1,196 $305,000 $307,605 $298,324 Contracted Services $157 $40,000 $38,766 $39,028 Real Estate Taxes**(2.296081%) $1,765 $450,032 $379,414 $361,633 Franchise Tax $98 $25,000 $28,136 $22,964 Insurance $200 $51,000 $42,898 $44,935

Replacement Reserve/Cap Ex $250 $63,750 $63,750 $63,750 Total Expenses $1,513,740 $1,527,036 $1,494,036 Per Unit $5,936 $5,988 $5,859 Per SF $8.49 $8.57 $8.38 Net Operating Income $1,351,534 $1,191,795 $1,171,788

NOTES TO PRO FORMA:

*T-12 Cap Ex Figures are adjusted to Industry Standards **2015 Cap Ex totaled $80,927

Lady Bird Lake | Congress Ave. Bridge

University of Texas (Main Campus) Neighborhood Overview Sixth Street | Warehouse District

Retail Area Employers Restaurants & Entertainment

 Southpark Meadows  Advanced Micro Devices (AMD)  Cinemark Southpark Meadows  HEB Grocery Stores  Motorola  St. Elmo’s Market  Walmart Super Center  Texas State Capitol  Trudy’s South Star  The Home Depot  St. David’s Healthcare (Corp. Office)  Yard Dog Art Gallery  Whole Foods Market  The University of Texas  Frank Erwin Center  Apple Store  Austin Chamber of Commerce  Alamo Draft House  Lowe’s Home Improvement  Seton Family of Hospitals  Home Slice Pizza  Melrose Clothing  Sematech  Paramount Theatre  PetSmart  Toyko Electron  Magnolia Café South  Super Target  Texas Workforce Commission  Darrell K. Royal Football Stadium  Bed Bath & Beyond  Freescale  Amy’s Ice Cream  Academy Sports and Outdoors  St. Edwards University  Blanton Museum of Art (U.T.)  Ulta Beauty  Internal Revenue Service (IRS)  Regal Cinemas Metropolitan 14  Barton Creek Square Mall  Oracle (New Campus)  Umlauf Sculpture Garden  TOMS Austin  Time Warner Cable  The Long Center for the  By George  Google Performing Arts  South Congress Books  Cirrus Logic  Warehouse Saloon & Billiards  Allen’s Boots  Facebook  Emo’s  Kendra Scott Jewelry  HomeAway  Hotel San Jose  Ashley Furniture Home Store  Austin Community College (ACC)  Harry Ransom Center (U.T.)  Walgreen’s Pharmacy  DropBox  LBJ Library (U.T.)  Bath & Body Works  State Government Offices Outdoors

 Barton Creek Greenbelt The Place at West Village | 739 W. William Cannon Dr.  Zilker Park  Barton Springs Pool  Lady Bird Wildflower Center Easy Access Additional Destinations  Williamson Creek East Greenbelt  Mabel Davis District Park  Interstate Highway 35  6.2 mi. to CBD  Blunn Creek Nature Preserve  Highway 71 / Ben White  8.4 mi. to U.T. (Main Campus)  Loop One (MoPac Expwy)  3.8 mi. to St. Edward’s University  William Cannon Drive  7.4 mi. to Austin Convention Center AISD Schools  South Congress Avenue  0.1 mi. to South First Street  Williams Elementary School  South First Street  0.8 mi. to South Congress Avenue  Bedichek Middle School  South Lamar Boulevard  11 mi. to Austin-Bergstrom  Crockett High School  Manchaca Road International Airport (ABIA)

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Area Map

The Place at West Village | 739 W. Williamwww.muskincommercial.com Cannon Dr.

Austin Attributes One of the Best Cities for Millennials

Percent of Population (Age 25-34): 21.2% Millennial Newcomers: 3.12% Unemployment Rate: 2.6%

(Forbes, 2015) Photo courtesy of Forbes Magazine Texas to see Explosive Growth: Population to Double by 2050

(Austin Business Journal, 2015)

Photo courtesy of utexas.edu The Austin metropolitan area added 43,400 net 11th Largest new jobs, or 4.7%, in the Population 12 months ending in January 2016 Among U.S. (U.S. bureau of Labor Statistics, 2016) Cities Photo courtesy of Trip Advisor

(U.S. Census, 2015) The Place at West Village is a short drive to downtown Austin, the State Capitol, and many of the city’s largest employers including Advanced Micro Devices, the IRS, Sematech, Motorola and Tokyo Electron. It is also minutes from Austin’s newest mixed-use communities, South Park Meadows (www.southparkmeadows.com); and area colleges and universities, including the University of Texas (main campus), St. Edwards University, Austin Community College, Huston-Tillotson and Texas State University (San Marcos). Photo courtesy of 6thstreet.com

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

MULTIFAMILY INVESTMENTS SALES

www.muskincommercial.com

Ellen Muskin | [email protected] Daniel Elam | [email protected] (512) 343-2700 Ph