ALPINALPIN PARKPARK APARTMENTSAPARTMENTS 124124 Value-AddValue-Add MultifamilyMultifamily UnitsUnits

1572615726 ChaseChase HillHill BlvdBlvd SanSan Antonio,Antonio, TXTX 7825678256 OFFER PROCESS

Submitting Offers

Offers should be presented in the form of a non-binding Letter of Intent, setting the significant terms and conditions of Purchasers’ offers including, at minimum, (1) asset pricing, (2) due diligence and closing time frames, (3) earnest money deposit, (4) proof of funds and (5) other qualifications to close. Seller-financing is not available. Offers should be delivered to the attention of primary broker at the mailing address, email and/or fax number listed.

Property Visits

In order to adhere to COVID-19 restrictions and minimize impact to the property, tenants and management, property tours require advance notice and scheduling. These tours will include access to a representative sampling of units and other facilities. TABLEOF CONTENTS 32 28 19 12 7 5 MARKET OVERVIEW PRICING &FINANCIAL ANALYSIS APARTMENT MARKET COMPARABLES INVESTMENT DESCRIPTION MAPS &PROPERTY AERIALS EXECUTIVE SUMMARY EXECUTIVESUMMARY EXECUTIVESUMMARY

15726 Chase Hill Blvd | San Antonio, TX 78256

PROPERTY DESCRIPTION

124 877 2007 108,780 UNITS AVG UNIT YEAR RENTABLE SF BUILT SF

98% 6.19 $0.95 $834 OCCUPANCY ACRES AVG MKT RENT/SF AVG MKT RENT

5 EXECUTIVESUMMARY

15726 Chase Hill Blvd | San Antonio, TX 78256

PROPERTY HIGHLIGHTS DOUBLE PLAY VALUE-ADD Alpin Park’s in-place average rents are significantly lower than the average rents of the competition. A new owner can also generate tremendous upside by renovating all 124 units, bringing them to a new value-add level.

PRIDE OF LONG-TERM OWNER Alpin Park has been meticulously maintained and managed by the original owner/developer since 2007. The top-quality construction features 9-foot ceilings, all new 25-year roofs in 2016, poured concrete double plated second and third floors, 100% stucco exteriors, all interior and exterior lighting replaced with LED, and the entire parking lot is concrete.

LIVE – WORK - PLAY OPPORTUNITY New ownership has the opportunity to develop out property amenities to enhance the Live – Work – Play culture popular among Millennial and Gen Z residents, which dominate the area’s demographics.

POTENTIAL PHASE II DEVELOPMENT Property includes a half-acre site, which has been prepped with plans and utilities for an additional 72 units, creating significant upside for a new owner. This land could also be developed to further enhance amenities.

STELLAR LOCATION Property is expertly located 1 mile north of the University of Texas San Antonio. With just under 32,000 students, UTSA is the premier university of San Antonio. The property will also draft off the nearby La Cantera Crossing shopping and retail development anchored by Alamo Draft House, set to open 150 yards from Alpin Park in late 2020.

6 MAPS & PROPERTYAERIALS MAPS & PROPERTYAERIALS

15726 Chase Hill Blvd | San Antonio, TX 78256

LA CANTERA PKWY

CHASE HILL BLVD

8 MAPS & PROPERTYAERIALS 15726 Chase Hill Blvd | San Antonio, TX 78256

CHASE HILL BLVD

LA CANTERA PKWY

9 MAPS & PROPERTYAERIALS 15726 Chase Hill Blvd | San Antonio, TX 78256

Government Canyon State Natural Area

10 MAPS & PROPERTYAERIALS 15726 Chase Hill Blvd | San Antonio, TX 78256

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11 INVESTMENTDESCRIPTION INVESTMENTDESCRIPTION 15726 Chase Hill Blvd | San Antonio, TX 78256

COMMUNITY AMENITIES Swimming Pool Fitness Center Volleyball & Basketball Court BBQ Grills / Picnic Laundry Facility Access Gates Walk or Bike to UTSA On UTSA Bus Route

UNIT FEATURES Ceiling Fans Ceramic Tile Mini Blinds Outside Storage Patio / Balcony Walk-in Closets Dishwashers Washer / Dryer Connections

*representative photos 13 INVESTMENTDESCRIPTION 15726 Chase Hill Blvd | San Antonio, TX 78256

PROPERTY SUMMARY Number of Units 124 Units Year Completed 2007 Number of Buildings 12 Number of Stories 3 Net Rentable Area 108,780 SF Average Unit Size 877 SF SITE Address 15726 Chase Hill Boulevard San Antonio, Texas 78256 County Bexar County Size/Density 6.19 acres / 20 units per acre Property Schools District: Northside Independent School District Elementary School: Mary Elementary Middle School: Hector Garcia Middle High School: Brandeis High Parking 217 open surface spaces available PROPERTY TAX INFORMATION Parcel Size 6.19 acres Density 20 units per acre Parcel ID 621380, 119688, 621379 2019 Assessed Value $8,300,000 Total Tax Rate 2.608832% 2019 Taxes $216,533 14 INVESTMENTDESCRIPTION 15726 Chase Hill Blvd | San Antonio, TX 78256

LOREM IPSUM

POPULATION 1 MILE 3 MILES 5 MILES

2024 Projection 6,924 78,807 182,809 D 2019 Estimate 6,576 70,976 166,454 2010 Census 5,859 53,218 133,233 E Growth 2019-2024 1.04% 2.12% 1.89% Growth 2010-2019 1.26% 3.16% 2.44% M O RESIDENTS G 2024 Projection 9,365 40,968 67,807 2019 Estimate 8,618 37,327 61,488 R 2010 Census 7,977 32,122 50,981 Growth 2019 - 2024 8.67% 9.75% 10.28% A Growth 2010 - 2019 8.04% 16.20% 20.61% Owner Occupied 695 13,393 34,602 P Renter Occupied 1,147 13,459 30,787 H 2023 HOUSING UNITS I <$50,000 0 22 63 C $50,000 - $99,999 1 128 242 $100,000 - $149,999 20 778 1,776 S $150,000 - $199,999 150 3,049 6,163 $200,000 - $249,999 129 3,101 8,050 $250,000 - $299,999 134 2,284 5,195 $300,000 - $399,999 172 2,536 6,664 $400,000+ 79 1,302 4,182

15

856 Square Feet 1 Bedroom | 1 Bath

542 Square Feet

2 Bedroom | 1 Bath 2 Bedroom | 2 Bath

1,050 Square Feet 1,150 Square Feet APARTMENTCOMPARABLES MARKET APARTMENTCOMPARABLES MARKET

PROPERTY # UNITS YEAR BUILT OCCUPANCY AVG. SF MKT. RENT EFF. RENT/SF ALPIN PARK APARTMENTS 124 2007 100.00% 877 $834 $0.95 1 CHASE HILL APARTMENTS 200 1977 90.00% 711 $854 $1.20 2 HIGH VIEW APARTMENTS 174 2008 81.00% 1,153 $1,995 $1.73 3 MAVERICK CREEK VILLAS 258 1998 82.76% 1,039 $1,383 $1.33 4 ROW APARTMENTS 100 1985/2015 87.00% 911 $1,074 $1.18 5 SKYVUE 232 1972/2018 80.00% 773 $877 $1.13 6 TETRO STUDENT VILLAGE 198 2013 90.00% 1,435 $1,904 $1.33

TOTAL / AVG. 1,162 85.13% 1,004 $1,348 $1.32

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4 20 APARTMENTCOMPARABLES MARKET

ALPIN PARK APARTMENTS

15726 CHASE HILL BLVD UNIT MIX SAN ANTONIO, TX 78256 UNIT TYPE # UNITS SIZE SF TOTAL SF MKT. RENT RENT/SF 1 BR / 1 BA 36 542 19,512 $688 $1.27 TOTAL UNITS: 124 YEAR BUILT: 2007 1 BR / 1 BA 28 856 20,544 $807 $0.94 RENTABLE AREA (SF): 108,780 2 BR / 1 BA 37 1,050 25,200 $898 $0.86 OCCUPANCY: 100% 2 BR / 2 BA 23 1,150 46,000 $990 $0.86 Total / Avg. 124 Units 897 111,256 $834 $0.95

UNIT FEATURES COMMUNITY AMENITIES • Ceiling Fans • Swimming Pool • Ceramic Tile • Fitness Center • MIni Blinds • Volleyball and Basketball Court • Outside Storage • BBQ Grills / Picnic • Patio / Balcony • Laundry Facility • Walk-in Closets • Access Gates

21 APARTMENTCOMPARABLES MARKET

CHASE HILL APARTMENTS

15801 CHASE HILL BLVD UNIT MIX SAN ANTONIO, TX 78256 UNIT TYPE # UNITS SIZE SF TOTAL SF MKT. RENT RENT/SF 0 BR / 1 BA 32 454 14,528 $723 $1.59 TOTAL UNITS: 200 1 BR / 1 BA 60 614 36,840 $798 $1.30 YEAR BUILT: 1977 2 BR / 1 BA 52 812 42,224 $893 $1.10 RENTABLE AREA (SF): 142,277 2 BR / 2 BA 55 862 47,410 $948 $1.10 OCCUPANCY: 90.00% 3 BR / 2 BA 1 1,275 1,275 $1,230 $0.96 Total / Avg. 200 Units 711 142,277 $854 $1.20

UNIT FEATURES COMMUNITY AMENITIES • Mini Blinds • BBQ Grills • Walk-in Closets • Laudry Facility 1 • Dishwasher • Swimming Pool • Ceiling Fans • Gated - Limited Access

22 APARTMENTCOMPARABLES MARKET

HIGH VIEW APARTMENTS

15949 CHASE HILL BLVD UNIT MIX SAN ANTONIO, TX 78256 UNIT TYPE # UNITS SIZE SF TOTAL SF MKT. RENT RENT/SF 1 BR / 1 BA 36 600 21,600 $920 $1.53 TOTAL UNITS: 174 2 BR / 1 BA 74 816 60,384 $1,120 $1.37 YEAR BUILT: 2008 3 BR / 1 BA 74 1,096 81,104 $1,395 $1.27 RENTABLE AREA (SF): 200,610 4 BR / 2.5 BA 74 1,418 104,932 $1,860 $1.31 OCCUPANCY: 81.00% Total / Avg. 258 Units 1,039 268,020 $1,383 $1.33

UNIT FEATURES COMMUNITY AMENITIES 2 • Mini Blinds • Swimming Pool • Walk-in Closets • Fitness Center • Ceiling Fans • BBQ Area • Dishwasher • Courtesy Patrol • Washer /Dryer

23 APARTMENTCOMPARABLES MARKET

MAVERICK CREEK VILLAS

15651 CHASE HILL BLVD UNIT MIX SAN ANTONIO, TX 78256 UNIT TYPE # UNITS SIZE SF TOTAL SF MKT. RENT RENT/SF 1 BR / 1 BA 36 600 21,600 $920 $1.53 TOTAL UNITS: 258 2 BR / 1 BA 74 816 60,384 $1,120 $1.37 YEAR BUILT: 1998 3 BR / 1 BA 74 1,096 81,104 $1,395 $1.27 RENTABLE AREA (SF): 268,020 4 BR / 2.5 BA 74 1,418 104,932 $1,860 $1.31 OCCUPANCY: 82.76% Total / Avg. 258 Units 1,039 268,020 $1,383 $1.33

UNIT FEATURES COMMUNITY AMENITIES • Mini Blinds • Swimming Pool • Celing Fans • Fitness Room • Walk-in Closets • BBQ Area • Dishwashers • Laundry Facility 3 • Extra Storage • Courtesy Patrol • Club Room

24 APARTMENTCOMPARABLES MARKET

ROW APARTMENTS 7302 7302 UNIVERSITY ROW UNIT MIX SAN ANTONIO, TX 78256 UNIT TYPE # UNITS SIZE SF TOTAL SF MKT. RENT RENT/SF 1 BR / 1 BA 16 610 9,760 $850 $1.39 TOTAL UNITS: 100 2 BR / 2 BA 56 890 49,840 $1,050 $1.18 YEAR BUILT: 1985/2015 2 BR / 2.5 BA 28 1,125 31,500 $1,250 $1.11 RENTABLE AREA (SF): 91,100 Total / Avg. 100 Units 911 91,100 $1,074 $1.18 OCCUPANCY: 87.00%

UNIT FEATURES COMMUNITY AMENITIES • Mini Blinds • Swimming Pool • Walk-in Closets • Dog Park • Dishwashers • BBQ Area • Ceiling Fans • Playground • Washer/ Dryer Connections

4 25 APARTMENTCOMPARABLES MARKET

SKYVUE

15800 CHASE HILL BLVD UNIT MIX SAN ANTONIO, TX 78256 UNIT TYPE # UNITS SIZE SF TOTAL SF MKT. RENT RENT/SF 1 BR / 1 BA 40 500 20,000 $750 $1.50 TOTAL UNITS: 232 1 BR / 1 BA 40 641 25,640 $740 $1.15 YEAR BUILT: 1972/2018 2 BR / 1 BA 72 810 58,320 $875 $1.08 RENTABLE AREA (SF): 179,240 2 BR / 2 BA 80 941 75,280 $1,010 $1.07 OCCUPANCY: 80.00% Total / Avg. 232 Units 773 179,240 $877 $1.13

UNIT FEATURES COMMUNITY AMENITIES • Mini Blinds • Swimming Pool 5 • Walk-in Closets • Fitness Room • Ceiling Fans • BBQ Area • Dishwashers • Laundry Facility • Gated

26 APARTMENTCOMPARABLES MARKET

TETRO STUDENT VILLAGE

7023 N LOOP 1604 W UNIT MIX SAN ANTONIO, TX 78249 UNIT TYPE # UNITS SIZE SF TOTAL SF MKT. RENT RENT/SF 2 BR / 2 BA 21 840 17,640 $1,410 $1.68 TOTAL UNITS: 198 2 BR / 2 BA 60 888 53,280 $1,410 $1.59 YEAR BUILT: 2013 3 BR / 3 BA 40 1174 46,960 $1,875 $1.60 RENTABLE AREA (SF): 284,200 4 BR / 4 BA 77 2160 166,320 $2,440 $1.13 OCCUPANCY: 90.00% T otal / Avg. 198 Units 1,435 284,200 $1,904 $1.33

UNIT FEATURES COMMUNITY AMENITIES • Mini Blinds • Swimming Pool 5 • Walk-in Closets • Fitness Room • Celing Fans • BBQ Area • Dishwashers • Security Patrol • Washer/ Dryer • Gated • Dog Park • Clubhouse

27 PRICING & FINANCIALANALYSIS Units: 124 Year Built: 2007 MIX Total Area (SF): 111,256 UNIT Site Size (Acres): 6.19 Density (Units Per Acre): 20.03 Occupancy (As of March 01, 2020): 98.4%

ALPIN PARK APARTMENTS

UNIT MIX MARKET RENT MARKET UNIT TYPE # UNITS SIZE SF TOTAL SF MARKET RENT RENT/SQ. FT. MONTHLY RENT ANNUAL RENT 1 BR / 1 BA 36 542 19,512 $715 $1.32 $25,740 $308,880 1 BR / 1 BA 24 856 20,544 $820 $0.96 $19,680 $236,160 2 BR / 1 BA 24 1,050 25,200 $900 $0.86 $21,600 $259,200 2 BR / 2 BA 40 1,150 46,000 $1,020 $0.89 $40,800 $489,600 Total / Avg. 124 Units 897 111,256 $870 $0.97 $107,820 $1,293,840

LEASE RENT MARKET RENT AFTER UPGRADES # UNITS LEASE RENT / VALUE-ADD VALUE-ADD OCCUPIED LEASE RENT SQ. FT. RENT RENT/SQ. FT. MONTHLY RENT ANNUAL RENT 36 $688 $1.27 $865 $1.60 $31,140 $373,680 24 $801 $0.94 $970 $1.13 $23,280 $279,360 24 $870 $0.83 $1,050 $1.00 $25,200 $302,400 38 $956 $0.83 $1,170 $1.02 $46,800 $561,600 122 $830 $0.98 $1,020 $1.14 $126,420 $1,517,040

VALUE-ADD ASSUMPTIONS & SUMMARY

VALUE-ADD / CAPITAL NEEDS RENT PREMIUMS RETURN ON INVESTMENT Value Add Cost (124 units at $6500 / Unit) $806,000 Monthly Premium $18,600 Additional Capital Needs $0 1 BR Units $150 Annual Premium $223,200 Total Cost $806,000 2 BR Units $150 ROI 28%

29 OPERATINGSTATAEMENT

DECEMBER 2O19 DECEMBER 2O19 SACA T-12 ACTUAL T-6 INCOME/T-12 EXPENSES PRO FORMA TOTAL PER UNIT TOTAL PER UNIT TOTAL PER UNIT INCOME Scheduled Market Rent 1,293,840 $10,434 $1,293,840 $10,434 $1,293,840 $10,434 Pro Forma Rent Increase 0 0 0 0 38,815 3.0% Pro Forma Upgrade Premium 0 0 0 0 74,400 600 Gain/(Loss) to Lease 0 0.0% 0 0.0% (21,106) -1.5% Total Gross Potential $1,293,840 $10,434 $1,293,840 $10,434 $1,385,949 $11,177 Vacancy (79,303) -6.1% (79,303) -6.1% (69,297) -5.0% Bad Debt/Write-Offs 0 0.0% 0 0.0% (20,789) -1.5% Concessions 0 0.0% 0 0.0% (20,789) -1.5% Net Rental Income $1,214,537 $9,795 $1,214,537 $9,795 $1,275,073 $10,283 Spectrum Royalty Income 5,252 42 5,252 42 5,252 42 Utility Reimbursement 0 0 0 0 37,619 50% Other Income 0 0 0 0 62,000 500 Total Other Income $9,976 $42 $5,252 $42 $104,871 $846 Total Operating Income $1,219,789 $9,837 $1,219,789 $9,837 $1,379,945 $11,129 Pro forma Increase: 13% vs T-12 Income Pro forma Increase: 13% vs T-12 Income EXPENSES Electricity 7,043 57 7,043 57 7,184 58 Water/Sewer 59,945 483 59,945 483 61,144 493 Trash Removal 6,776 55 6,776 55 6,912 56 Subtotal Utilities 73,764 595 73,764 595 75,239 607 Repairs, Maintenance, Make-Ready 110,749 893 110,749 893 62,000 500 Subtotal Repairs & Maintenance 110,749 893 110,749 893 62,000 500 Payroll & Burden 56,674 457 56,674 457 136,400 1,100 General & Administrative 11,297 91 11,297 91 12,400 100 Advertising 4,846 39 4,846 39 12,400 100 Property Management Fee 0 0.0% 0 0.0% 48,298 3.5% Real Estate Taxes 220,877 1,781 220,877 1,781 240,012 1,936 Property Insurance 40,350 325 40,350 325 40,300 325 Capital Reserves 0 0 0 0 31,000 250 Total Operating Expenses $518,557 $4,182 $518,557 $4,182 $658,049 $5,307 $5.91

NET OPERATING INCOME $701,232 $5,655 $701,232 $5,655 $721,895 $5,822

30 FOOTNOTESFOOTNOTES

HISTORICAL & PRO FORMA INCOME FOOTNOTES HISTORICAL & PRO FORMA EXPENSE FOOTNOTES 1 Scheduled Market Rent 11 Water/Sewer The Scheduled Market Rent of $1,293,840, or $107,820 per month, is based on the current highest Water/Sewer recast at actual T-6 expense. Someone in the neighborhood was turning on the hose bibs at leased rent shown on the Rent Roll dated 3-1-20. night for about six months. There were no plumbing leaks. Proforma Landscaping/Pest recast at $125/unit. Included in owner's Actual Repairs and Maintenance. 2 Pro Forma Rent Increase The Pro Forma assumes a 3% annual market rent increase. 12Repairs, Maintenance, Make-Ready The Pro Forma assumes a Repairs & Maintenance expense of $650/unit. 3 Pro Forma Upgrade Premium The pro forma assumes the property will begin upgrades in Year 1. Proposed upgrades are 13Payroll & Burden expected to take approximately 3 years to complete. The anticipated gain through rent premiums The Pro Forma assumes Payroll & Burden of $1,100/unit. for the upgrades is expected to be around $74,400/year throughout the course of the upgrade period. 14 General & Administrative General & Administrative recast at $100/unit. 4 Gain/(Loss) to Lease The pro forma assumes Gain/(Loss) to Lease to be -1.5% of Scheduled Market Rent. 15 Advertising Advertising recast at $50/unit. 5 Vacancy The Apartment Trends quotes Vacancy in the FNW Submarket built from 2000 - 2010 to be 5.2%. 16 Property Management Fee The pro forma assumes vacancy equivalent to -5.0% of the Gross Potential Income. The asset is currently self-managed. The Pro Forma assumes a management fee expense of 3.5% The pro forma Management Fee is 3.5% of Total Operating Income. 6 Bad Debt/Write-Offs The pro forma assumes Bad Debt/Write-Offs of -1.5% of pro forma Gross Potential Income. 17 Real Estate Taxes 7 Concessions Property Taxes The Apartment Trends quotes Concessions in the FNW Submarket to be 2.0%. Pro forma assumes State Texas 2019 Tax Value $8,300,000 concessions of -1.5% of Gross Potential Income. County Bexar Assessed Value $8,300,000 City San Antonio Tax Rate 2.609% 8 Spectrum Royalty Income Real Property Tax $216,533 10-year contract with Spectrum transfers to new owner. Lump sum of $4,776 for the year paid at Tax Assess Ratio 100% Stormwater Fees $0 signing; paid quarterly thereafter. Tax Parcel ID(s) 621380, 1119688, 621379 Property Tax Rebate $0 Personal Prop/Bus Tax $0 9 Utility Reimbursement 2019 Total Property Taxes $216,533 Tenants only reimburse $15/month per adult in lease. Proforma is based on 50% of actual T-12 expense for common electric, water/sewer and trash expense. 18 Property Insurance The pro forma Property Insurance is assumed to be $325/unit. 10Other Income The Pro Forma assumes $500/unit annual income for miscellaneous income items under a 19Capital Reserves stabilized management operation. Owner owns both maint and mgmt companies. T-12 Maint expense has been reduced by $250/unit Replacement reserves; $2,583/month. The Pro Forma Capital Reserves are based on a typical $250/unit.

31 MARKETOVERVIEW MARKETOVERVIEW

San Antonio topped the nation for population growth in 2017 and is projected to continue on its upward trend. Bexar County is expected to add up to 1.1M new residents and 500,000 new jobs by 2040. Ron Nirenberg, the San Antonio mayor, pledged in April 2018 to create 70,000 new area jobs over the next two years. According to Forbes, San Antonio experienced the largest millennial influx in the country between 2000 and 2013.

#2 City in the U.S. for population growth (2018)

#9 Largest Boomtown in the Country - Forbes 2018

#11 Best Job Market for 2017 Grads - Thumbtack 33 MARKETOVERVIEW

3.4% UNEMPLOYMENT RATE TOP 10 BEST STATE BEST BUSINESS TAX FOUNDATION’S 2017 STATE CLIMATE 2017 BUSINESS TAX INDEX BUSINESS FACILITIES MAGAZINE

TEXAS HAS ONE OF THE LOWEST TAX BURDENS NO CORPORATE INCOME TAX | NO INDIVIDUAL INCOME TAX 1.4% 191,400 INCREASE JOBS ADDED IN 2017 BEST STATE FOR BUSINESS 2019 (and 2018, 2017, 2015, 2014, 2013, .... within Top State for Business 2012, 2011 #1 #10 &2010) STATE FOR EXPORTS - 16th LARGEST ECONOMY IN CONSECUTIVE YEAR THE WORLD BASED ON GDP #1 #7 BEST STATE FOR BUSINESS - CONSECUTIVE SITE 14TH CONSECUTIVE YEAR SELECTION GOVERNOR’S CHIEF EXECUTIVE MAGAZINE CUP AWARD 34 MARKETOVERVIEW

San Antonio: Energetic Alamo City

San Antonio is a unique Texas city with a rich Colonial heritage and progressive economic base. Well known as the site of The Alamo, an 18th century Spanish mission that marks the site of the 1836 battle for Texan independence from Mexico, San Antonio ranks as one of the world’s top travel destinations and welcomes an estimated 30 million visitors annually.

30M $15.2B ESTIMATED ESTIMATED ANNUAL VISITORS ECONOMIC IMPACT

The Alamo is today part of the San Antonio Missions World Heritage Site. Traversed by the San Antonio River, Downtown San Antonio features the popular River Walk, a landmark pedestrian promenade lined with cafes and shops, and HemisFair Park’s 750-foot Tower of the Americas.

35 MARKETOVERVIEW TOP 10 HEADQUARTERS San Antonio’s thriving tourism industry supplements a broad economic COMPANY SECTOR # EMPLOYED base that encompasses flourishing IT and cybersecurity fields, H-E-B Super Market Chain 20,000 established financial services, expanding biomedical and biotech USAA Financial Services 18,305 sectors, a booming new energy sphere, and a robust manufacturing sector ranging from aircrafts to Toyota trucks. Bill Miller Bar-B-Q Fast Food Chain 4,500 Valero Energy Oil Refiner & Gasoline Mktg 4,000 The area has attracted operations for Petco, Oracle, Microsoft, Cullen / Frost Bankers Financial Services 3,982 Medtronic, H-E-B, Whataburger, Toyota Motor Manufacturing Texas, and more. Rackspace IT Managed Hosting Solutions 3,540 Toyota Motor Manu TX Auto Manufacturing 3,200 Metro employment increased by 24,600 jobs between Feb17 to Feb18. CPS Energy Utilities 3,125 During the same period, unemployment averaged 3.5%, compared to Clear Channel Comm., Inc. TV & Radio Stations, Outdoor Ads 2,800 4.1% in Texas and 4.1% in U.S for same time period. Southwest Research Institute Applied Research 2,715

2.56M 2.14M MSA POPULATION MSA POPULATION (2019) (2010)

17.2% 3.1%

MSA POP. GROWTH UNEMPLOYMENT (2010-2018) RATE (MAY 2018)

36 MARKETOVERVIEW

#1 City in Economic Growth Potential

San Antonio is recognized as the #1 City for Economic Growth Potential by Business Facilities, as well as one of the strongest-performing economies among the nation’s 100 largest metros and #1 in overall employment performance per The Brookings Institution. Anchoring San Antonio’s economic sustainability and growth potential is its booming workforce.

MAJOR METRO EMPLOYERS

• Lackland Air Force Base - 37,000 • Harland Clarke - 5,000 • Fort Sam Houston-U.S. Army - 32,000 • JP Morgan Chase - 5,000 • H-E-B - 20,000 • Andeavor (oil refiner) - 5,000 • USAA - 18,305 • Bill Miller BBQ - 4,500 • Randolph Air Force Base - 11,000 • AT&T - 4,300 • Methodist Healthcare System - 9,620 • Valero Energy Corp. - 4,000 • City of San Antonio - 9,145 • Rackspace - 3,540 • Baptist Health System - 6,383 • CPS Energy - 3,125 • Wells Fargo - 5,073 • Six Flags Fiesta Texas - 3,000

37 MARKETOVERVIEW

Comprehensive Bio/Healthcare Base

One in every six San Antonio employees works in the Bioscience/Healthcare industry, within which 50,000 net new jobs have been added over the past decade. The region is home to two of the largest military medical centers in the country and a highly-ranked 5,618-bed healthcare community. San Antonio is also home to two medical schools and a dental school operated by the University of Texas and University of the Incarnate Word.

Methodist Hospital University Hospital Brooke Army Medical Center

NOTABLE MEDICAL FACILITIES

Brooke Army Medical Center and the 59th Medical Wing comprise the San Antonio Military Health System, representing the largest military healthcare establishment in the country and supporting over 250,000 beneficiaries. Further, medics from all branches of the U.S. military are trained in San Antonio at the Medical Education and Training complex, which is the world’s largest allied health training complex.

San Antonio’s major biomedical research institutions have been awarded more than $325 million in external research grants. Baptist Health System, CHRISTUS Santa Rosa Health System, Methodist Health System, and University Health System have all been recognized by U.S. News and World Report for clinical excellence.

BIGGEST HOSPITALS (# OF BEDS)

• Methodist Hospital & Methodist Heart Hospital - 685 • CHRISTUS Santa Rosa System/Hospital - 668 • Baptist Medical Center - 627 • Methodist Specialty and Transplant Hospital - 379 • Metropolitan Methodist Hospital - 329 • Nix HealthCare System - 297 • St. Luke’s Baptist Hospital - 295 38 MARKETOVERVIEW

Joint Base San Antonio (JBSA)

With 4 major military bases, San Antonio is home to an active duty population of more than 60,000 people, one of the largest military populations in the nation.

The military has had a significant presence in San Antonio for years. Among its many military related accolades: the first military flight took place at Fort Sam Houston in 1910, the Air Intelligence Agency is located at Lackland Air Force Base, Brooke Army Medical Center is the leading treatment center for burn victims in the military, and Fort Sam Houston is the home of Army medicine.

Missing Man Monument- Randolph Air Force Base

MILITARY AT A GLANCE

Nearly 285,000 regional jobs are generated by JBSA installations:

• Randolph Air Force Base – Headquarters for Air POWERFUL REGIONAL INFLUENCE Education and Training Command and the Air Force 282,995 Military Personnel Center Joint Base San Antonio (JBSA) has an estimated $48.7 JOINT BASE SAN ANTONIO • Fort Sam Houston – Brooke Army Medical Center, Institute of Surgical Research, Defense Medical billion impact on the regional economy, contributes TOTAL JOBS 65% of Texas’ total military GDP, and generates an Readiness Training Institute annual disposable personal income of approximately • Lackland Air Force Base – Air Force Basic Training and $17 billion. 77,659 headquarters for Air Force Intelligence Agency DIRECT JBSA JOBS • Camp Bullis – Provides Base Operations Support and With one in eight people in Bexar County associated Training Support to JBSA with JBSA, the Alamo Region’s military employment accounts for 3.4% of the area’s total employment and 205,336 64% of Texas’ total military population. INDIRECT JBSA JOBS 39 MARKETOVERVIEW

Impactful IT/Cyber Industry

San Antonio has one of the largest concentrations, across multiple agencies, of IT, Information Assurance (IA), and cybersecurity professionals in the nation. Locally, the industry employs 34,000 IT professionals and generates an annual economic impact of nearly $10 billion. The state of Texas is #2 in the nation for science and technology, and per Computerworld Magazine, San Antonio is #2 in the nation for information assurance, behind only Washington, D.C. The 24th Air Force, the Air Force Cyber Command, and the Air Education and Personnel Command are headquartered in San Antonio, as well as other entities with a significant local information security missions.

EXPANDING CYBERSECURITY IT/CYBER HIGHLIGHTS

Today, with more than forty cybersecurity firm The regional talent pipeline is fueled through massive local investment and commitment to headquarters, San Antonio has one of the largest education and a highly skilled Cybersecurity workforce. concentrations of IT, Information Assurance (IA) and cybersecurity professionals in the nation. In 2014, • Nearly 900 Department of Labor-designated IT companies USCYBERCOMM announced 1,000 new jobs coming to • 80+ companies in the San Antonio Defense Technology Cluster San Antonio and in 2015 the 25th Air Force ISR was • 56,000+ science and technology workforce redesignated/created, as well as the U.S. Army • 20,000 IT-related positions announcing its Cyber Protection Team in San Antonio. • 7,500 SCI-cleared personnel • Host of major nationally recognized cyber-related professional events • Large Certified Information Systems Security Professionals (CISSPs) workforce

40 MARKETOVERVIEW

Backed by a robust education system of 15 colleges and universities coupled with supplemental training programs that begin as early as middle school, San Antonio’s workforce is amplified by a highly-educated, youth-inspired vigor. With regard to early education, 17 Independent School Districts (ISDs) serve an estimated 340,500 students in the region. The Alamo Heights and Boerne ISDs rank among the 25 top performing school districts in Texas.

UNIVERSITY OF TEXAS AT SAN ANTONIO (UTSA) TOP TEN LARGEST UNIVERSITIES & ENROLLMENT*

With enrollment exceeding 33,000 students, UTSA is San Antonio’s largest university • University of Texas San Antonio - 33,000+ and has four campuses: Main, Downtown, Hemisfair, and Park West. Among many • University of the Incarnate Word - 10,390 accolades, its cybersecurity program was recently ranked No. 1 in the nation by • Texas A&M University San Antonio - 6,500 Hewlett-Packard/Ponemon Institute. As an integral part of downtown San Antonio’s • UT Health San Antonio - 3,250 urban growth and livability, UTSA’s downtown campus enrollment of 4,000 students • Our Lady of the Lake - 3,100 today is envisioned to almost quadruple over the coming decade. • St. Mary’s University - 2,300+ • Alamo Community Colleges (San Antonio, Northwest Vista, The downtown campus is the site of several proposed advanced cyber St. Phillips, Palo Alto, Northwest Lakeview - 62,500+) security-oriented facilities. One is a $33M, 80,000 SF National Security Collaboration Center (NSCC) that will among many capabilities serve as a major hub for government, *Latest figure quoted by institution university, and industry partners in the cybersecurity field. The second will be a new $57M, 138,000 SF School of Data Science, which will provide a new home for UTSA’s computer science, computer engineering, statistics and data sciences, information systems and cyber security. It will also house the university’s Open Cloud Institute. 41 MARKETOVERVIEW

San Antonio’s aerospace industry has expanded by over 400% during the last 25 years. More than 13,000 are employed locally in aerospace-related maintenance, repair, and operations (MRO), manufacturing, military, and air transportation services industries. San Antonio also boasts the Alamo Area Aerospace Academy program, which works in close partnership with industry and serves as a national model for developing a pipeline between local high school students and aerospace employers.

PORT SAN ANTONIO

Port San Antonio is a 1,900-acre platform for aerospace, heavy industrial, and international logistics. The site features an industrial airport, Kelly Field (SKF), which offers the region’s largest runway. The Port also operates an adjacent 350-acre railport, East Kelly Railport, directly accessible by cargoes that travel on Union Pacific and BNSF Railway trains. Anchor tenants include marquee names like Boeing, Lockheed Martin Commercial Engine Solutions, Chromalloy, GDC Technics, SAFRAN, and Standard Aero. A Foreign Trade Zone, the Port is situated midway between the East and West coasts and at the center of the NAFTA Corridor between Mexico and Canada. 42 MARKETOVERVIEW

Advanced Manufacturing

San Antonio has a large and diverse manufacturing industry, with virtually every major sector of U.S. manufacturing present in the community, including materials and electricity, equipment and metal, transportation, and diversified products. A 2016 impact study indicated that regional manufacturing had an economic impact of $40.1 billion, employed over 51,000 San Antonians, and paid 23% above the average annual salary.

TOYOTA MOTOR MANUFACTURING, TEXAS, INC. (TMMTX)

In October 2018, TMMTX celebrated their 15-year anniversary in San Antonio, where the auto giant manufactures the Tundra fullsize pickup and the Tacoma compact pickup. Established in 2003 with a $2.1 billion investment, the 2,000-acre south San Antonio assembly plant site employs 3,200. Toyota’s on-site suppliers provide a myriad of parts, materials and logistics services.

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Vital Crossroads for Commerce & Culture

Positioned 190 miles west of Houston, 75 miles southwest of Austin, 135 miles from the U.S./Mexico border, and 135 miles north of the Gulf of Mexico, San Antonio is a vital economic crossroads and situated at the center of the NAFTA Corridor between Mexico and Canada.

AIR RAIL

The San Antonio Airport System includes San Antonio Amtrak, BNSF Railway, and Union Pacific rail serve the region. Given International Airport and Stinson Municipal Airport. approval of the Union Pacific/Southern Pacific merger, San Antonio offers competitive rail services to the entire U.S., various border crossing points • San Antonio International: Offers 122 daily flights and into Mexico, and deep water ports along the Gulf of Mexico. serves 8.3+ million passengers annually. The airport’s largest direct industry employer is VT San Antonio Aerospace, which employs 1,200.

• Stinson Municipal: Built in 1915, is the second oldest ROADS general aviation airport in continuous operation in the U.S.; employs 500, handles 150,000 aircraft operations San Antonio offers a comprehensive system of roads and transit services. annually, and is planning expansion. • Crossroads of I-10 and I-35, I-410 urban loop, numerous regional highways. • Current bus, paratransit and bus rapid transit. • An array of motor freight carriers.

NEW ENERGY $1.4B NEE ANNUAL ECONOMIC IMPACT San Antonio is home to CPS Energy, the largest municipally-owned, vertically integrated, gas and electric utility company 900+ in the U.S. Through its New Energy NEE JOBS Economy (NEE), CPS Energy has spurred the creation of a solar manufacturing and $200M+ clean energy technology hub in San NEE EDUCATIONAL AND CAPITAL Antonio. As a result, NEE has led to more than $1.4 billion in annual economic INVESTMENT impact, 900 jobs, and $200+ million in educational and capital investment. 44 MARKETOVERVIEW

River Walk

San Antonio’s regeneration of urban districts such as The Pearl and trails. The Alamo, River Walk, Market Square (El Mercado), Sea Southtown are prime examples of how the city’s historic areas have World Texas, Schlitterbahn Waterpark and Resort, and Six Flags been revived. The Pearl district originated from the Pearl Brewing Fiesta Texas are not only tourist attractions, they provide company in the late 1800s, and its fascinating evolution through residents with entertainment options unmatched in other cities. time has culminated into a thriving cultural hub. Southtown district Notably, San Antonio was named a “creative city of gastronomy” offers grassroots art communities and notable architectural gems. in 11/2018 by UNESCO, the 2nd in the US to earn distinction and San Antonio offers an inviting array of parks, gardens, rivers, and first in Texas.

Pearl District Market Square (El Mercado) Six Flags Fiesta Texas

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This Proposal of the property is being delivered subject to the terms of the Confidentiality Agreement (the “Confidentiality Agreement”) signed by you and constitutes part of the Confidential Information (as defined in the Confidentiality Agreement). It is being given to you for the sole purpose of evaluating the possible sale of Alpin Park Apartments, San Antonio, TX (the “Property”), and is not to be used for any other purpose or made available to any other party without the prior written consent of San Antonio Commercial Advisors. This proposal MARK V. DIEBOLD was prepared by San Antonio Commercial Advisors based primarily on information supplied by the Owner. It contains select information about the Property and the real estate market DIRECTOR but does not contain all the information necessary to evaluate the Property. The financial projections contained herein (or in any other Confidential Information) are for general +1 210 305 4282 reference only. They are based on assuptions relating to the overall economy and local competition, among other factors. Accordingly, actual results may vary materially from such [email protected] projections. Various documents have been summarized herein to facilitate your review; these summaries are not intended to be a comprehensive statement of the terms or a legal analysis of such documents. While the information contained in this proposal and any other Confidential Information is believed to be reliable, neither San Antonio Commercial Advisors nor Owner guarantees its accuracy or completeness. Because of the foregoing and since the MIKE WATSON investment in the Property is being offered on an “As Is, Where Is” basis, a prospective investor or other party authorized by the prospective investor to use such material solely to SENIOR DIRECTOR facilitate the prospective purchaser’s investigation, must make its independent investigations, projections and conclusions regarding the investment in the Property without +1 210 824 9080 reliance on this proposal or any other Confidential Information. Although additional Confidential Information, which may include engineering, environmental or other reports, [email protected] may be provided to qualified parties as the marketing period proceeds, prospective purchasers should seek advice from their own attorneys, accountants, engineers and environmental experts. Neither San Antonio Commercial Advisors nor Owner guarantees the accuracy or completeness of the information contained in this proposal or any other

& Confidential Information provided by San Antonio Commercial Advisors and Owner. Owner BRYAN VANCURA expressly reserves the right, at its sole discretion, to reject any offer to invest in the Property or to terminate any negotiations with any party at any time with or without written notice. ASSOCIATE Owner shall have no legal commitment or obligations to any prospective investor unless and +1 210 321 9143 until a written sale agreement has been fully executed, delivered and approved by Owner and any conditions to Owner’s obligations thereunder have been satisfied or waived. Owner has [email protected] retained San Antonio Commercial Advisors as its exclusive broker and will be responsible for any commission due to San Antonio Commercial Advisors in connection with a transaction relating to the Property pursuant to a separate agreement. San Antonio Commercial Advisors is not authorized to make any representation or agreement on behalf of Owner. Each prospective investor will be responsible for any claims for commissions by any other broker 200 E. Grayson, Suite 124 in connection with an investment in the Property if such claims arise from acts of such prospective investor or its broker. This proposal is the property of Owner and all parties San Antonio, TX 78215 | USA approved by Owner and may be used only by parties approved by Owner. No portion of this proposal may be copied or otherwise reproduced or disclosed to anyone except as permitted www.sacadvisors.com under the Confidentiality Agreement.

©2020 San Antonio Commercial Advisors NO WARRANTY OR REPRESENTATION, EXPRESS OR IMPLIED, IS MADE TO THE ACCURACY OR COMPLETENESS OF THE INFORMATION CONTAINED HEREIN, AND SAME IS SUBMITTED SUBJECT TO ERRORS, OMISSIONS, CHANGE OF PRICE, RENTAL OR OTHER CONDITIONS, WITHDRAWAL WITHOUT NOTICE, AND TO ANY SPECIAL LISTING CONDITIONS IMPOSED BY THE PROPERTY OWNER(S). AS APPLICABLE, WE MAKE NO REPRESENTATION AS TO THE CONDITION OF THE PROPERTY (OR PROPERTIES) IN QUESTION. ANY SPECIAL LISTING CONDITIONS IMPOSED BY THE PROPERTY OWNER(S). AS APPLICABLE, WE MAKE NO REPRESENTATION AS TO THE CONDITION OF THE PROPERTY (OR PROPERTIES) IN QUESTION. CONTACTS DISCLAIMER