44 Units 0.99 ACRES 5701 Schumacher Lane | Houston, TX 77057 2

49M SF 150,000+ 9 1.2M SF MINUTE MAID PARK TOYOTA CENTER CLASS A Employees FORTUNE GEORGE R. BROWN HOUSTON ASTROS HOUSTON ROCKETS OFFICE 500 CONVENTION CENTER COMPANIES cbd 2,000 82,000+ 21M SF OF 5M SF 1,000+ 14TH LARGEST COMPANIES EMPLOYEES OFFICE SPACE OF RETAIL STORES BUSINESS DISTRICT IN NATION 7 uptown/g alleria mi

610

1 mi chimney rock rd richmond ave

anderson park

fullyfountain renovated view dr located in Supply Outlook Excellent asset with uptown/galleria, Produces Infill Location minimal deferred one of houston’s Favorable Providing maintenance most desirable Multifamily Immediate Access submarkets Fundamentals to 350,000 Jobs

44 units 0.99 ACRES 5701 schumacher lane | Houston, TX 77057 2

PRICE # OF UNITS YEAR BUILT TBD 44 1965

TOTAL AVERAGE OCCUPANCY ACREAGE UNIT SIZE (LEASED)

0.99 703 sf 93%

NET RENTABLE AVG MARKET RENT AVG MARKET RENT AREA PER MONTH PER SF

30,948 sf $949 $1.35

anderson park 3

investment fully renovated asset highlights Minimal deferred maintenance

Faux wood flooring Granite countertops asset in rapidly improving submarket

• T12 Rent Growth in Galleria/Uptown uptown | galleria Submarket: 5% Galleria/Uptown Submarket Performance • T12 Occupancy Growth: $1.50 92% 5.0% $1.48 90% • Class B Rent have $1.46 grown nearly 6.0% after $1.44 bottoming out at $1.13 in 88% June 2017 $1.42 $1.40 86%

$1.38

84% $1.36

$1.34 82%

$1.32

$1.30 80% Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18

Occ% Rate 2018 Proj rent growth 4.5%

2019 Proj rent growth 4.3% 4

investment supply outlook produces highlights Favorable Multifamily Fundamentals 45 69 45 69

supply 2014-2016 10 current supply 10 MEMORIAL MEMORIAL PARK PARK 1,466 acres CENTRAL 1,466 acres CENTRAL 4M annual visitors BUSINESS 4M annual visitors BUSINESS DISTRICT DISTRICT UPTOWN/ UPTOWN/ GALLERIA GALLERIA 45 45

45 45 69 69

610 610

HERMANN PARK/ HERMANN PARK/ HOUSTON ZOO HOUSTON ZOO • Over 2,500 units delivered between 2014-2016 • One 69Property under construction in submarket between 2018-2020:69 Hanover Blvd Place • Using historical T24 absoroption, the Galleria submarketTEXAS is MEDICAL projected to stabilize by 4Q of 2018 TEXAS MEDICAL CENTER CENTER HORN HORN ELEMENTARY ELEMENTARY Excellent Infill LocationNRG PARK Providing NRG PARK 610 • Majestic Apartments610 Immediate Access to 350,000 Jobs provides immediate commutes to 5 of Houston’s top How long is employment hubs the drive? • Opportunity for a covered land play TO # of Miles Galleria < 1 - 5 min Greenway Plaza < 2 - 10 min Texas Medical Center < 5 - 12 mn 610 Westchase District < 5 - 10 min Memorial City < 5 - 14 min 5 45 610 MILES 10

ENERGY CORRIDOR MEMORIAL CITY 48K employees 610 CENTRAL BUSINESS DISTRICT 94K employees 158K employees

UPTOWN | GALLERIA 82K employees GREENWAY PLAZA WESTCHASE DISTRICT 25K employees 93K employees 45

TEXAS MEDICAL CENTER 106K employees 5

»» 14th largest business uptown/galleria district in the US business district »» 82,000 employees »» Five million square feet of retail space and more than 1,000 stores »» The Galleria hosts 26 million visitors annually, making it the number one shopping and tourist attraction in Houston

Galleria/Uptown District Greenway Plaza

2,000 82,000+ 28M SF OF 106, 000 5, 000 50,000 COMPANIES EMPLOYEES CLASS A OFFICE LARGEST EMPLOYEES DOCTORS STUDENTS MEDICAL COMPLEX #14 IN THE WORLD 10 BUILDING 25,000+ 4.25M SF COMPLEX EMPLOYEES OF CLASS A OFFICE 5M SF 1,000+ 14TH LARGEST OF RETAIL STORES BUSINESS DISTRICT MASTER-PLANNED MIXED-USE 52-ACRE SITE IN NATION PREMIER FRONTAGE ALONG U.S. HIGHWAY 59 21 15,000 45.8M SF OF 5,700 7.2M+ VISITORS HOSPITALS NURSES COMMERCIAL RESEARCHERS PER YEAR SPACE $1 BILLION IN $5 MILLION RENOVATIONS UNDERWAY IN RENOVATIONS 1.3 MILLION SF UNDER RECENTLY COMPLETED CONSTRUCTION 8TH LARGEST $7 BILLION 1,345 ACRES IN EXPANSIONS BUSINESS DISTRICT IN NATION 6

Major

employers 19

14 13 9 21 20 18 15 16 12 11 4 10

23 6 1 22 5

2 UPTOWN/GALLERIA MAJOR EMPLOYERS 1] Galleria Office Towers

2] Williams Tower Williams Companies, Rowan Companies, Quanta Services 3 15] Marathon Oil 3] Bechtel Oil, Gas & Chemicals 16] 5151 San Felipe Goodman Manufacturing Company, 4] Amegy Bank HQ Columbia Pipeline Group 24 5] Silicus Technologies, LLC 17] Post Oak Central Stewart Title Co., Apache Corporation, Engie North America 6] AECOM 18] Schlumberger 7] BBVA Compass Plaza 19] Riverway Office Park Northwestern Mutual, 8] Four Oaks Plaza Morgan Stanley, SureTec, Riverway Title Company, Aly Energy Services Main Street Capital 20] San Felipe Plaza Chase, Amerifirst 9] 1400 Post Oak Ln Select Energy, JLL 21] Burns & McDonnel 10] Transwestern 22] 5718 Westheimer Capital One, DCP Midstream 11] 1800 West Loop South Blue Cross Blue Shield of Texas, Pierpont Communications, Anheuser-Busch 23] Enbridge

12] BLVD Place Frost Bank, Cantor Fitzgerald, ARA Newmark Greenway Plaza Occidental Petroleum, Transocean, 24] Chicago Title, Camden, Solvay Chemicals, Invesco, 13] Landry’s Inc Direct Energy 7

GREENWAY PLAZA

Galleria/Uptown District Greenway Plaza

»» Ten-building complex totaling over 4.25 million square feet of Class A office space »» 25,000 employees »» Master-planned mixed-use 52-acre site with premier frontage along U.S. Highway 59 »» $5 million in renovations recently completed

energy corridor westchase district 5.5 mi

5 3 mi 300 94,000 22M SF OF 29M SF 3RD LARGEST COMPANIES EMPLOEES OFFICE SPACE OF RETAIL EMPLOMENT CENTER IN HOUSTON

1,500 93,000 18M SF OF 21M SF COMPANIES EMPLOEES OFFICE SPACE OF RETAIL westheimer rd richmond ave

Houston Camera Exchange

fountain view dr Kawai Piano Gallery

Sam’s Boat Uptown Lounge anderson park

chimney rock rd 9

energy corridor westchase district 5.5 school MECHANICAL mi OVERVIEW SYSTEMS 5 3 mi 300 94,000 22M SF OF 29M SF 3RD LARGEST COMPANIES EMPLOEES OFFICE SPACE OF RETAIL EMPLOMENT CENTER SCHOOL DISTRICT ELECTRICITY IN HOUSTON Houston Independent School District Individually metered 1,500 93,000 18M SF OF 21M SF ELEMENTARY SCHOOL WATER/SEWER COMPANIES EMPLOEES OFFICE SPACE OF RETAIL St. George Place Master-metered, Owner pays westheimer rd MIDDLE SCHOOL HOT WATER richmond ave Tanglewood 2 boilers HIGH SCHOOL HVAC Wisdom Individual climate controlled units

Houston Camera Exchange CONSTRUCTION PARKING fountain view dr Kawai Piano Gallery Sam’s Boat DETAILS INFORMATION Uptown Lounge anderson STYLE OPEN, UNRESERVED SPACES park Garden-style 53 NUMBER OF BUILDINGS PARKING SPACES PER UNIT 4 two-story buildings 1.2 FOUNDATION Concrete post-tension slab chimney rock rd EXTERIOR WALLS Stucco and stacked stone? ROOF TYPE Flat FLOOR COVERING Faux wood and ceramic tile PAVING Concrete and asphalt paved with curbs WIRING Aluminum, CO/ALR PIPING PVC 10

pro forma

PRO FORMA FINANCIAL ANALYSIS INCOME % of GSR Totals Per Unit Per SF Gross Scheduled Rent 100.00% $511,020 $11,614 $16.51 Less: (Gain)/Loss-to-Lease 3.00% 15,331 348 0.50 Gross Potential Income 97.00% $495,689 $11,266 $16.02 Less: Vacancy 5.00% 25,551 581 0.83 Total Rental Income 92.00% $470,138 $10,685 $15.19 % of GSR Totals Per Unit Per SF Plus: Other 1.08% 5,517 125 0.18 Total Other Income 1.08% 5,517 125 0.18 Effective Gross Income 93.08% $475,655 $10,810 $15.37 EXPENSES % of EGI Totals Per Unit Per SF Repairs and Maintenance 4.63% 22,000 500 0.71 Payroll 10.18% 48,400 1,100 1.56 Administrative 0.23% 1,100 25 0.04 Marketing 0.23% 1,100 25 0.04 Utilities 3.68% 17,528 398 0.57 Total Variable Expenses 18.95% $90,128 $2,048 $2.91 Taxes 16.17% 76,932 1,748 2.49 Insurance 3.70% 17,600 400 0.57 Management Fee 4.00% 19,026 432 0.61 Total Operating Expenses 42.82% $203,686 $4,629 $6.58 Capital Reserves 3.24% 15,400 350 0.50 Total Expenses 46.06% $219,086 $4,979 $7.08 Net Operating Income $256,569 $5,831 $8.29 11

pro forma assumptions

RENTAL INCOME Gross Scheduled Rent – based on current market rents in the 7/5/2018 rent roll and grown 2%

Loss-to-Lease – assumed at 3.00% of GSR

Vacancy – assumed at 5.00% of GSR which is consistent with June’18 T3 actuals

OTHER INCOME

Other Income – based on June’18 T3 actuals and grown 3.00%

EXPENSES

Repairs and Maintenance – assumed $500/unit which is based on June’18 T3 actuals and adjusted for market norms

Payroll – assumed $1,100/unit which is based on June’18 T3 actuals and adjusted for market norms

Administrative – assumed $25/unit which is consistent with June’18 T3 actuals

Marketing – assumed $25/unit which is consistent with June’18 T3 actuals

Utilities – based on June’18 T3 actuals and grown 3%; tenants are responsible for their own electric but property covers water, sewer and gas

Property Tax – the Property is in Harris County and has tax ID # 0741650040072; 2018 appraised value was $2,768,344; pro forma taxes are based on Year 1 appraisal growth of 10% over current appraised value and multiplied by the 2018 millage rate of 2.52635%

Insurance – assumed $400/unit; insurance expenses vary depending on the coverage and deductible selected by the investor and whether the Property is included on a single-asset or blanket policy

Management Fee – assumed 4.00% of EGI based on the size of the property and market norms 12

• Beautiful courtyard • Ceiling fans • Gated parking • Walk-in closets • Picnic area with barbecue grills • Frost-free refrigerators, dishwashers amenities & • Onsite laundry facility and garbage disposals • Intercom access for each apartment features • Faux wood flooring • Granite counter tops 13 14

rent comparables

EFF. RENT # OF AVG. MARKET MARKET EFFECTIVE EFFECTIVE # PROPERTY YOC OCC. UNIT TYPE DELTA UNITS SQ FT RENT RENT PSF RENT RENT PSF (Comp vs. Subject) 1-Bed 73 704 $838 $1.19 $838 $1.19 $119 Tanglewood 1 1976 99% 2-Bed 13 978 $1,029 $1.05 $1,029 $1.05 $19 Place Total/Avg. 86 746 $867 $1.16 $867 $1.16 $62

1-Bed 35 576 $842 $1.46 $842 $1.46 $123 2 Atrium Regency 1989 96% 2-Bed 87 1,155 $1,223 $1.06 $1,223 $1.06 $213 Total/Avg. 122 989 $1,113 $1.13 $1,113 $1.13 $309

1-Bed 67 688 $879 $1.28 $851 $1.24 $132 Constitution 3 1970 92% 2-Bed 12 951 $1,067 $1.12 $1,042 $1.10 $32 Square Total/Avg. 79 728 $907 $1.25 $880 $1.21 $76

1-Bed 89 580 $834 $1.44 $834 $1.44 $115 Montebello 4 1974 96% 2-Bed 20 930 $1,036 $1.11 $1,036 $1.11 $26 Gardens Total/Avg. 109 644 $871 $1.35 $871 $1.35 $67

1-Bed 62 651 $821 $1.26 $821 $1.26 $102 5 Gallery 1972 97% 2-Bed 36 968 $1,071 $1.11 $1,071 $1.11 $61 Total/Avg. 98 767 $913 $1.19 $913 $1.19 $109

1-Bed 65 643 $842 $1.31 $837 $1.30 $118 TOTALS/ 96% 2-Bed 34 1,060 $1,142 $1.08 $1,140 $1.08 $130 AVERAGES Total/Avg. 99 785 $944 $1.20 $940 $1.20 $136

1-Bed 32 643 $855 $1.33 $719 $1.12 Majestic 1965 93% 2-Bed 12 864 $1,200 $1.39 $1,010 $1.17

SUBJECT Total/Avg. 44 703 $949 $1.35 $804 $1.14 HAMMERLY BLVD

45 HOUSTONrent 10 COUNTRYcomparables CLUB map MEMORIAL PARK MEMORIAL DR

CHIMNEY ROCK RD CENTRAL BUSINESS DISTRICT BRIAR FOREST DR

WESTHEIMER RD VOSS RD 69

BISSONNET ST

KIRBY DR

69 AVE HILLCROFT

HOLCOMBE BLVD

1 Tanglewood Place 610 TEXAS MEDICAL CENTER S MAIN

2 Atrium Regency

610 3 Constitution Square

4 Montebello Gardens

5 Gallery INVESTMENT SALES Brad Shaffer Brandon Miller Taylor Gaspard [email protected] [email protected] [email protected] T 713-337-5806 T 713-554-0132 T 713-337-5805 M 713-775-6888 M 956-533-4237 M 979-709-8554

Russell Jones Matt Saunders Zach Springer [email protected] [email protected] [email protected] T 713-425-5422 T 713-554-1303 T 713-425-5428 M 832-541-1499 M 281-300-1468 M 713-897-9670 capital markets Adam Allen Tip Strickland David Schwarz Purvesh Gosalia [email protected] [email protected] [email protected] [email protected] T 713-425-5433 T 713-337-5810 T 713-337-5811 T 713-300-7954 M 713-824-6066 M 832-724-4288 M 713-412-9055 M 313-570-5221

ARA - HOUSTON 1700 Post Oak Blvd 2 BLVD Place, Suite 400 Houston, TX 77056 T 713-599-1800 F 713-599-1801