82 Unit Class C Asset Located in Beaumont Texas

Home , Crockett Street, Edison Plaza, Julie Rogers Theater

82 Unit

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Class C Asset

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Located in Beaumont Texas PARKWAY APARTMENTS ● 155 E. Florida Ave ● Beaumont, TX 77705

Apartments For Sale $2,419,000

Price Per Unit $29,500 Units: 82 Price Per Sq. Ft. $35.84 Avg Size: 823 Stabilized NOI $234,212 Date Built: 1968 Value Capped @ 8.5% $2,755,434 Rentable Sq. Ft.: 67,488 Acreage: 2.71 Occupancy: 90% Class: C+

HIGHLIGHTS

♦ Great Area Job Base! ♦ Upgrades to the Property in the Last 3 Years Include: ♦ Beaumont is a Strong Petrochemical Based Market A/C's, Roofs, Ceramic Tile, HardiPlank Siding, A/C Cages ♦ Property has been Rehabbed ♦ Lamar University is Slowly buying all the Real Estate Adjacent ♦ Good Drive-by and Curb Appeal to the Campus ♦ Well Maintained Smaller Asset in a Strong Area ♦ Please note that Parkway consist of 4 addresses:

♦ Located in Beaumont, Texas Approx 90 Miles East of ♦ 117 North Parkway 24 Units Houston ♦ 120 North Parkway 3 Units ♦ Area Benefits from Texas Gulf Coast Economic Boom ♦ 155 E. Florida Avenue 23 Units ♦ Student Housing Component - on Lamar University Campus ♦ 1140 Georgia 32 Units

PLEASE DO NOT VISIT THE PROPERTY OR TALK TO THE STAFF WITHOUT AN APPOINTMENT MADE THROUGH THE BROKER!

For More Information Please Contact:

Hashir Saleem, Senior Associate [email protected] l 713-355-4646 l ext 106

KET ENTERPRISES INCORPORATED 4295 San Felipe l Suite 355 l Houston, TX 77027 www.ketent.com

Broker License #0406902

PARKWAY APARTMENTS ● 155 E. Florida Ave ● Beaumont, TX 77705

Physical Information Financial Information Proforma Loan Parameters Operating Information Number of Units 82 Asking Price $2,419,000 Proposed Loan at 70% $1,693,300 Est Mkt Rent (Sep-14) $46,900 Avg Unit Size 823 Price Per Unit $29,500 Amortization (months) 300 5 Mo Avg $41,308 Net Rentable Area 67,488 Price Per Sq. Ft. $35.84 P & I $9,653.80 Physical Occ (Aug-14) 90% Land Area (Acres) 2.71 Stabilized NOI $234,212 Debt Service/year 115,845.57 Est Ins per Unit per Yr $369 Units per Acre 30.296 Value Capped @ 8.5% $2,755,434 Origination Date Closing Property Tax Information Date Built 1968 Due Date 10 years 2013 Tax Rate/$100 2.68965 Water Meter / Master Master Interest Rate 4.8% 2014 Tax Assessment $1,458,140 Elec Meter Indiv Type Conduit Est 2014 Taxes $39,219 Roof Style Pitched Yield Maintenance Yes Est Future Tax Assessment $3,082,000 HVAC System Indiv Est Future Taxes $82,895 * per unit -; per ft - INCOME MODIFIED ACTUALS PRO-FORMA PRO-FORMA INCOME Current Street Rent with a % Increase 562,800 $46,900 / Mo Estimated Gross Scheduled Income 562,800 $46,900 / Mo Estimated Loss to Lease (8% of Total Street Rent) (45,024) 8% Estimated Vacancy (12% of Total Street Rent) (67,536) 12% Estimated Concessions and Other Rental Losses (10% of Total Street Rent) (56,280) 10% Estimated Utilities Income 188,100 $2,294 / Unit / Yr Estimated Other Income 23,000 $280 / Unit / Yr Estimated Total Rental Income 605,060 ESTIMATED TOTAL PRO-FORMA INCOME 605,060 $50,422 / Mo

Apr thru Aug 2014 Income Annualized $495,694 1

EXPENSE Jan thru Aug 2014 Expenses Annualized Estimated FutureExpenses Fixed Expenses Fixed Expenses Estimated Fixed Expenses Taxes $39,219 $478 per Unit 2013 Tax Rate & 2014 Assessment $82,895 $1,011 per Unit 2013 Tax Rate & Est Future Assessment Insurance $30,280 $369 per Unit $30,258 $369 per Unit Estimated Total Fixed Expense 69,499 $848 per Unit 113,153 $1,380 per Unit Utilities Utilities Estimated Utilities Electricity $5,408 $66 per Unit $5,732 $70 per Unit Gas $ per Unit $ per Unit Water & Sewer $47,051 $574 per Unit $47,051 $574 per Unit

Total Utilities 52,459 $640 per Unit 52,783 $644 per Unit

Other Expenses Other Expenses Estimated Other Expenses General & Admin & Marketing $16,400 $200 per Unit 2. Adjusted by Broker $21,320 $260 per Unit Repairs & Maintenance $66,738 $814 per Unit $41,000 $500 per Unit Labor Costs $53,300 $650 per Unit 2. Adjusted by Broker $82,000 $1,000 per Unit Contract Services $11,789 $144 per Unit $11,789 $144 per Unit Management Fees $19,828 4.00% $242 per Unit 3. Added by Broker $24,202 4.00% $295 per Unit Total Other Expense 168,055 $2,049 per Unit 180,312 $2,199 per Unit

Total Operating Expense 290,013 $3,537 per Unit 346,248 $4,223 per Unit

Reserve for Replacement ` 24,600 $300 per Unit 24,600 $300 per Unit

Total Expense 314,613 $3,837 per Unit 370,848 $4,523 per Unit Net Operating Income (Actual Underwriting) 181,081 234,212

Asking Price 2,419,000 2,419,000 Cap Rate 7.49% 9.68% Proposed Debt 1,693,300 1,693,300 Equity 725,700 725,700 Proposed Debt Service 115,846 115,846 Cash Flow 65,236 118,366 Cash on Cash 8.99% 16.31%

NOTES: ACTUALS: Actuals are from Owner's Jan thru July 2014 operating statement. Reserve for Replacement estimated on actual and pro forma at $300/unit/year. 1. Per Owner, total income includes late fees, application fees, vending, etc.; however, there is no line item for miscellaneous income. 2. Parkway Apartment pays the bulk of property labor and maintenance charges, therefore an adjustment to these accounts has been made by the broker. 3. Management fees were added by the broker.

PRO FORMA: Insurance is estimated. Taxes are 2013 rate and estimated future assessment. All other expenses are estimated.

10/1/2014 Parkway.xlsx PARKWAY APARTMENTS ● 155 E. Florida Ave ● Beaumont, TX 77705 PROPERTY OVERVIEW

PROPERTY INFORMATION TAXING AUTHORITY JEFFERSON COUNTY Age: 1968 ACCT ID Year Renovated: 2010 55691 Elec Meter: Indiv 62323 A/C Type: HVAC 45873 Water: Master Beaumont ISD $1.315000 Wiring: Copper City of Beaumont $0.690000 Roof: Pitched Port of Beaumont $0.069692 Paving: Concrete SabineNeches NAV Drainage $0.029374 Materials: Brick/HardiPlank Drainage District #6 $0.220587 # of Stories: 2 Jefferson County $0.365000 Parking: Open/Covered

Buildings: 5 2013 Tax Rate/$100 $2.689653 Units/Acre: 30.30 2014 Tax Assessment $1,458,140

Please note that Parkway Apartments consists COLLECTIONS of 4 addresses: 5 Mo Avg $ 41,308 $50,000 1. 117 N. Parkway 24 units Sep 2013 $ 36,160 $45,000 $40,000 Oct 2013 $ 36,160 2. 155 E. Florida Ave. 23 units $35,000 Nov 2013 $ 36,160 $30,000 3. 1140 Georgia 32 units Dec 2013 $ 36,160 $25,000 Jan 2014 $ 31,401 $20,000 4. 120 N. Parkway 3 units Feb 2014 $ 31,080 $15,000 Mar 2014 $ 32,911 $10,000 Apr 2014 $ 45,460 $5,000 May 2014 $ 39,342 $- Jun 2014 $ 38,018 Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug 2013 2013 2013 2013 2014 2014 2014 2014 2014 2014 2014 2014 Jul 2014 $ 37,918 Aug 2014 $ 45,801 PLEASE DO NOT VISIT THE SITE OR TALK TO THE STAFF WITHOUT AN APPOINTMENT MADE THROUGH THE BROKER. PROPERTY HIGHLIGHTS

A steady state opportunity, Parkway Apartments is an 82 unit garden style apartment complex, located on East Florida Avenue in Beaumont, TX. The property provides a playground, covered parking and patios/balconies. The project is across from Lamar University and maintains a strong occupancy while school is in session.

The owner has recently painted the exterior and replaced wood siding with Hardi Plank. The asset historically maintains high occupancy due to its close proximity to the nearby University. It is in very good condition as well. Currenlty there is no utility RUBS. A water/sewer RUBS could be implemented for additional income.

This property is an ideal candidate for low interest long-term debt, or the Lamar University officials may buy it.

Disclaimer : The information contained in this Memorandum reflects material from sources deemed to be reliable, including data such as operating statements, rent roll, etc. provided by the Owner. Notwithstanding, KET Enterprises Incorporated does not make any warranties about the information contained in this marketing package. Every prospective purchaser should verify the information and rely on his accountants or attorneys for legal and tax advice. This offer is “As-Is, Where-Is”. Answers to specific inquiries will have to be supplied by the Owner and are available upon request. Rates of return vary daily. No representations are made concerning environmental issues, if any. THIS IS A BROKER PRICE OPINION OR COMPARATIVE MARKET ANALYSIS AND SHOULD NOT BE CONSIDERED AN APPRAISAL. In making any decision that relies upon my work, you should know that I have not followed the guidelines for development or an appraisal or analysis contained in the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation.

PARKWAY APARTMENTS ● 155 E. Florida Ave ● Beaumont, TX 77705 Unit Mix September 2014

Type No. Units Sq Ft Total SqFt Rent Total Rent Rent/SF Source: Owner

1BR / 1BA 32 630 20,160 $500 $16,000 $0.79 2BR / 1BA 39 871 33,969 $600 $23,400 $0.69 2BR / 1BA 4 993 3,972 $650 $2,600 $0.65 3BR / 2BA 7 1341 9,387 $700 $4,900 $0.52

Total / Avg 82 823 67,488 $572 $46,900 $0.69

UNITS BY SIZE UNITS BY TYPE

7 7 4

32 32

43 39

1BR / 1BA 2BR / 1BA 2BR / 1BA 3BR / 2BA 32 ea 1BR / 1BA 43 ea 2BR / 1BA 7 ea 3BR / 2BA

Apartment Features Community Features

Spacious Floorplans Conveniently Located to Nearby University Ceramic Tile Flooring Excellent Frontage Convenient Laundry Room Convenient Access to Freeway Large bedrooms with Natural Sunlight Across From Lamar College Ample Closet and Storage Space Central Air Conditioning Full Size Refrigerator Garbage Disposal Dishwasher Ceiling Fans PARKWAY APARTMENTS ● 155 E. Florida Ave ● Beaumont, TX 77705

RENT COMPARABLES - September 2014 Property Name Year Built Occ #Units Avg SF Avg Rent P/SF

1 Parkdale Place 1978 99% 72 722 $490 0.679 4165 Crow Rd.

2 University Place 1978 99% 72 757 $550 0.727 755 E Florida Ave

3 Parkdale Plaza 1978 99% 52 952 $600 0.630 4215 Crow Rd.

4 Ashley Square TH 1968 99% 47 1,300 $663 0.510 2323 Evalon Ave.

5 Laurel Square TH 1988 99% 21 1,200 $685 0.571 3720 Laurel

Totals/Averages Comps 1978 99% 53 986 $615 0.623 Parkway 1968 90% 82 823 $572 $0.69 155 E. Florida Ave.

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2 PARKWAY APARTMENTS ● 155 E. Florida Ave ● Beaumont, TX 77705

SALES COMPARABLES (Sorted by Price/Sq. Ft.) Property Name Date Sold Price Sq. Ft. Units Price/SF Price/Unit Built

1 Normandy Apartments 02/02/11 $3,850,000 138,235 143 $27.85 $26,923 1975 3800 Normandy Dr., Port Arthur

2 Dove Landing 03/28/12 $700,000 19,710 28 $35.51 $25,000 1984 2719 Avenue H, Nederland

3 Carriage House 89/21/12 $2,650,000 70,361 84 $37.66 $31,548 1978 1803 Nederland Ave, Nederland

4 3910 Treadway Apts 09/20/12 $3,602,500 90,450 112 $39.83 $32,165 1975 3910 Treadway Road, Beaumont

5 1924 Avenue H 10/29/13 $630,000 7,142 16 $88.21 $39,375 1972 1924 Avenue H, Nederland, TX

Totals/Averages Comps 06/20/12 $2,286,500 65,180 77 $45.81 $31,002 1977

Parkway $2,419,000 67,488 82 $35.84 $29,500 1968 155 E. Florida Ave.

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1 PARKWAY APARTMENTS ● 155 E. Florida Ave ● Beaumont, TX 77705 Location PARKWAY APARTMENTS ● 155 E. Florida Ave ● Beaumont, TX 77705

DIRECTIONS TO PROPERTY:

From Downtown Houston

Take I-10 East towards Beaumont. Merge onto US 287 by way of the Port Arthur exit. Exit Highland Ave and make a left. Make a right onto Florida Ave. The property is on the left. . PARKWAY APARTMENTS ● 155 E. Florida Ave ● Beaumont, TX 77705 Beaumont, Texas

Beaumont

The entire Beaumont area was changed on January 10, 1901, when the Lucas well at Spindletop blew in from a depth of 1,020 feet with oil gushing 200 feet into the air. This discovery began an era of prosperity for southeast Texas that influences the economy to this day. The oil boom days of the early 20th century have returned to southeast Texas with more than $12 billion in industrial projects planned, proposed or currently underway. These projects will add more than 15,000 new jobs to the Beaumont Economy.

The petrochemical industry continues to drive economic growth in southeast Texas. Projects include the $2 billion Golden Pass LNG terminal and the $7 billion expansion of Motiva's Port Arthur refinery. The Motiva Port Arthur Refinery has recently completed an expansion that will allow the facility to

process 325,000 extra barrels of crude oil per day. The $7 billion-plus

expansion includes the installment of 600 miles of pipe, doubling the facility's Beaumont, Texas is located on Interstate 10, just 90 miles east of processing capacity to the largest in the nation. Houston and 25 miles from the Louisiana border. Beaumont is a city in

and county seat of Jefferson County, within the Beaumont–Port Arthur Another prominent employer for the area is the federal Bureau of Prisons, Metropolitan Area. The city's population was 118,548 at the 2011 which operates the Beaumont Federal Correctional complex in an census. With Port Arthur and Orange, it forms the Golden Triangle, a unincorporated area in Jefferson County, near Beaumont. The correctional major industrial area on the Gulf Coast. Beaumont is on Texas' facilities employ approximately 5,000 individuals. coastal plain, about 30 miles inland from the Gulf of Mexico, and just

south of the dense pine forests of East Texas. The city is bordered on

the east by the Neches River and to the north by Pine Island Bayou. Home to Lamar University, Beaumont has a long history as one of the first major oil-producing cities in America. Oil was discovered at Spindletop on January 10, 1901, which became the first major oil field and one of the largest in American history. That heritage has shaped Beaumont as it grew from a small rice and lumber town to a major player in the oil industry. The city has a an incredible variety of historical buildings including the 1903 built First Baptist Church, now known as the Tyrrell Historical Library. Other architecture includes Jefferson Theater, Julie Rogers Theater and Edison Plaza soaring at 254 feet. The city boasts about its historic Crockett Street Entertainment District located downtown. The District offers everything from the Spindletop Restaurant to the Dixie Dance Hall, with a number of other dining places, clubs and bars to visit. Beaumont is the city known as Texas with A Little Something Extra. The Cajuns call it

Lagniappe, meaning a little something extra, which pretty much Beaumont is not only a city with a rich heritage it is also a city which has describes Beaumont. The city's Bayou roots make it a combination of seen dramatic change in recent years. Much of the economic growth has two colorful cultures; Texas with Bayou influences. come from petrochemical, refinery and call center expansions, but . commercial retail development and single-family construction have also

increased. The city is ideally located on major highways and can be accessed via road, rail, air or water.

SUMMARY PROFILE 2000-2010 Census, 2012 Estimates with 2017 Projections

Calculated using Proportional Block Groups PARKWAY APARTMENTS ● 155 E. Florida Ave ● Beaumont, TX 77705 Demographics

Lat/Lon: 30.0357/-94.0847 1 Mile 3 Mile 5 Mile Radius Radius Radius

PARKWAY APARTMENTS ● 155 E. Florida Ave ● Beaumont, TX 77705 Ethnicity - 1 Mile Radius

2012 Estimated Population 9,339 20,212 30,796 2017 Projected Population 9,615 20,879 31,830 2010 Census Population 9,216 19,911 30,330 2000 Census Population 8,374 20,287 32,181 16% 18% White Projected Annual Growth 2012 to 2017 0.6% 0.7% 0.7% Black Historical Annual Growth 2000 to 2012 1.0% - -0.4% 11% Asian POPULATION 2012 Median Age 26.7 30.3 31.8 5% Other Hispanic 50% 2012 Estimated Households 2,936 6,963 10,624 2017 Projected Households 3,168 7,515 11,465 2010 Census Households 2,829 6,708 10,233 2000 Census Households 2,991 7,294 11,199

Projected Annual Growth 2012 to 2017 1.6% 1.6% 1.6% Historical Annual Growth 2000 to 2012 -0.2% -0.4% -0.4% HOUSEHOLDS 16%

2012 Estimated White 21.0% 17.3% 18.6% Non- 2012 Estimated Black or African American 60.1% 65.3% 62.7% Hispanic 2012 Estimated Asian or Pacific Islander 5.5% 3.6% 3.3% Hispanic 2012 Estimated American Indian or Native Alaskan 1.9% 1.3% 1.2% 2012 Estimated Other Races 11.4% 12.5% 14.3% 84% 2012 Estimated Hispanic 15.5% 17.2% 20.7% RACE AND ETHNICITY

2012 Estimated Average Household Income $30,070 $32,129 $39,016 2012 Estimated Median Household Income $27,208 $28,035 $30,211 2012 Estimated Per Capita Income $13,859 $14,194 $16,884 INCOME Average Income Subject - 1 Mile Radius 2012 Estimated Elementary (Grade Level 0 to 8) 7.5% 8.6% 10.4% $45,000 2012 Estimated Some High School (Grade Level 9 to 11) 15.4% 16.8% 16.8% $40,283 2012 Estimated High School Graduate 39.0% 38.2% 35.4% $40,000 2012 Estimated Some College 27.4% 24.3% 23.8% $35,000 2012 Estimated Associates Degree Only 2.3% 3.2% 4.2% $30,070 $30,000 2012 Estimated Bachelors Degree Only 6.1% 5.9% 5.8% (AGE 25+)

EDUCATION 2012 Estimated Graduate Degree 2.4% 3.1% 3.6% $25,000 $20,000 $15,000 2012 Estimated Total Businesses 151 413 977 2012 Estimated Total Employees 3,005 6,916 14,874 $10,000 2012 Estimated Employee Population per Business 19.9 16.7 15.2 $5,000 2012 Estimated Residential Population per Business 62.0 48.9 31.5

BUSINESS $0 Subject Beaumont

Assumption

N/A

EXCLUSIVELY PRESENTED BY

KET ENTERPRISES INCORPORATED

4295 San Felipe, Suite 355 Houston, TX 77027

Tel: (713)355-4646 Fax: (713)355-4331

www.ketent.com FOR MORE INFORMATION PLEASE CALL:

PRIMARY CONTACT:

HASHIR SALEEM Senior Associate (713) 355-4646 xt 106 [email protected]

Disclaimer: The information contained in this Memorandum reflects material from sources deemed to be reliable, including data such as operating statements, rent rolls, etc. However, we (KET Enterprises Incorporated, any of the Owners or officers, directors, employees, agents or representatives of any such entities) have not verified its accuracy and make no guarantee or representation about it. It is submitted subject to the possibility of errors, omissions, change of rental or other conditions. We include projections, opinions, assumptions or estimates for example only, and they may not represent current or future performance of the property. We make no representations or warranties, expressed or implied, as to the validity, accuracy or completeness of the information provided or to be provided, and nothing herein shall be deemed to constitute a representation, warranty or promise by any such parties as to the future performance of the Property or any other matters set forth herein. You and your tax and legal advisors should verify the information and rely on his accountants or attorneys for legal and tax advice. Rates of return vary daily. No representations are made concerning environmental issues, if any.