OFFERING MEMORANDUM

LEXINGTON ON THE LAKE

A CHARMING APARTMENT COMMUNITY IN BEAUMONT, TEXAS NON-ENDORSEMENT & DISCLAIMER NOTICE

CONFIDENTIALITY & DISCLAIMER The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB's or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant's plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap. All rights reserved.

NON-ENDORSEMENT NOTICE Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation's logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

OFFICES THROUGHOUT THE U.S. AND CANADA www.marcusmillichap.com EXCLUSIVELY LISTED BY

KENT MYERS First Vice President Investments Austin, Texas Direct: (512) 338-7853 [email protected] License: TX 0561047

TABLE OF CONTENTS 02 01 PROPERTY DESCRIPTION // 13 03 EXECUTIVE SUMMARY // 7 FINANCIAL ANALYSIS // 23

04 05 RENT COMPARABLES // 27 MARKET OVERVIEW // 35 This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap section 1 Executive Summary

offering summary

summary of terms

investment overview

investment highlights OFFERING SUMMARY

LEXINGTON ON THE LAKE

Total Price Total Price to Be Determined By Market 45 Units Rentable Square Feet 138,692 SF

Number of Buildings 10

Number of Stories 2

Year Built 2000

Lot Size 17.32 AC

8 EXECUTIVE SUMMARY SUMMARY OF TERMS

INTEREST OFFERED Marcus and Millichap has been retained on an exclusive basis to offer fee simple interest to qualified investors.

TERMS OF SALE Lexington on the Lake is offered free and clear of any existing debt.

PROPERTY TOURS Prospective purchasers are encouraged to visit the subject property prior to submitting offers. However, all property tours must be arranged with the Marcus & Millichap listing agent. At no time shall the tenants, on-site management or staff be contacted without prior approval.

EXECUTIVE SUMMARY 9 10 EXECUTIVE SUMMARY LEXINGTON ON THE LAKE

6195 N. Major Drive, Beaumont, TX, 77713

Lexington on the Lake is a charming apartment community in Beaumont, Texas where luxury meets value. Built in 2000, the complex consists of 152 units arranged in ten two-story buildings. Lexington on the Lake offers three spacious floorplans: a one-bedroom/one-bathroom measuring 696 square feet, a two-bedroom/two-bathroom measuring 946 square feet, and a three-bedroom/two-bathroom measuring 1,096 square feet. Lexington on the Lake is focused on providing residents a comfortable and convenient place to call home. The well-appointed units feature fully equipped kitchens, dining areas, ceiling fans, oversized closets, washer/dryer connections, private balconies or patios, and select units boast nine-foot ceilings and wood finish flooring. The community offers residents many amenities to enjoy including a sparkling swimming pool, fitness center, clubhouse, on-site management and maintenance, carports, tons of open green space, and, of course, the lake, which is stocked for fishing. With stylish homes and conveniences abound, residents find it easy to come home to Lexington on the Lake.

Lexington on the Lake is located in the city of Beaumont, part of the in southeast Texas. Beaumont is conveniently located off the Gulf of Mexico and shares borders with the Houston metro to the west and the Lake Charles market in Louisiana to the east. Lexington on the Lake is a tranquil, suburban property closely surrounded by employment opportunities, a strong retail presence, and recreational activities. Within just a few miles, residents can find an H-E-B plus!, Target, CVS, the Parkdale Mall, several schools and parks, a plethora of restaurant and eateries, and much more. The apartments are located at the intersection of TX-105 and US-96, giving residents easy means to everything Beaumont has to offer as well as interregional access. A best-in-class asset, this unique offering provides investors long term stability with upside potential and long-term value appreciation.

INVESTMENT HIGHLIGHTS

Shopping, Restaurants, & Recreation Nearby

Highly Visible Location at Intersection of TX-105 & US-96

Conveniently Located Between Houston and Louisiana’s Lake Charles Market

One of the Nation’s Largest Petrochemical Refining Areas

Home to the Nation’s Fifth Largest Port EXECUTIVE SUMMARY 11 This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap section 2 Property Description

regional maps

property details

amenities LEXINGTON ON THE LAKE

14 PROPERTY DESCRIPTION LEXINGTON ON THE LAKE

152 UNITS

PROPERTY DESCRIPTION 15 PROPERTY DESCRIPTION // Lexington on the Lake

Parcel 039070-000-000100-00000-6 Number of Units 152 Year Built 2000 Number of Buildings 10 Number of Stories 2 Acreage 17.32 Density 8.76 Units/Acre Exterior Brick & Wood Siding Roof Type Pitched Composition Shingle Rentable Square Footage 138,692 SF Parking Open Surface Spaces; Coverd Parking Available Laundry Connections in Units

FEES Application Fee $40

PETS Deposit $100 Per Pet One-Time Fee $150 For Dogs; $50 For Cats Policies 2 Pet Limit; Weight Restrictions UTILITIES Electricity Tenant Responsible Water Billed Back to Tenants Cable/Internet Tenant Responsible Trash Included Sewer Included SCHOOLS Beaumont ISD 29 Campuses; ~18,697 Students ~14,793 Students

TAXES 2019 Assessed Value $3,817,860 2019 Total Tax Rate 2.726355% 16 PROPERTY DESCRIPTION County Jefferson FLOORPLANS // Lexington on the Lake

1 Bedroom / 1 Bathroom 2 Bedroom / 2 Bathroom 696 Sq Ft 946 Sq Ft

3 Bedroom / 2 Bathroom 1,196 Sq Ft

PROPERTY DESCRIPTION 17 Common Area AMENITIES

Sparkling Swimming Pool

Fitness Center

Fishing at the Lake

Clubhouse

Lots of Open Green Space

Carports

On-Site Management & Maintenance

Pet Friendly

18 PROPERTY DESCRIPTION PROPERTY DESCRIPTION 19 Living Unit AMENITIES

Spacious Open Floorplans

Fully Equipped Kitchen

Dining Area

Wood Finish Flooring*

9 Foot Ceilings*

Ceiling Fans

Oversized Closets

Washer/Dryer Connections

Private Patio/Balcony

Some Bills Paid 20 PROPERTY DESCRIPTION *In Select Units PROPERTY DESCRIPTION 21 This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap section 3 Financial Analysis

operating statement OPERATING STATEMENT // Lexington on the Lake

INCOME T8 10/18 ANNUALIZED EOY 1 NOTES PER UNIT PER SF

Gross Potential Rent 1,526,676 1,526,676 [6] 10,044 11.01

Gross Scheduled Rent 1,526,676 1,526,676 10,044 11.01

Physical Vacancy (143,968) (110,654) 7.3% [5] (728) (0.80)

Economic Vacancy

Bad Debt (12,394) (12,394) 0.8% (82) (0.09)

Concession 0 (3,450) 0.2% (23) (0.02)

Total Vacancy ($156,362) ($126,498) 7.4% ($832) ($1)

Economic Occupancy

Effective Rental Income 1,370,314 1,400,178 9,212 10.10

Other Income

Utility Bill-Back 47,997 47,997 316 0.35

All Other Income 100,677 57,257 [1] 377 0.41

Total Other Income $148,674 $148,674 $978 $1.07

Effective Gross Income $1,518,988 $1,505,432 $9,904 $10.85

NOTES ►► [1] EOY 1 Has FEMA income omitted

►► [5] Vacancy is trailing 3 months annualized

►► [6] Value is July 2019 rent roll annualized

24 FINANCIAL ANALYSIS OPERATING STATEMENT // Lexington on the Lake

EXPENSES T8 10/18 ANNUALIZED EOY 1 NOTES PER UNIT PER SF

Real Estate Taxes 104,088 261,730 [2] 1,722 1.89

Insurance 40,044 40,044 263 0.29

Utilities - Electric 13,552 13,552 89 0.10

Utilities - Water & Sewer 69,118 69,118 455 0.50

Contract Services 48,119 48,119 317 0.35

Repairs & Maintenance 57,095 57,095 376 0.41

Payroll 126,836 126,836 834 0.91

General & Administrative 43,210 43,210 284 0.31

Turnover 46,077 46,077 303 0.33

Operating Reserves 38,000 38,000 [4] 250 0.27

Management Fee 61,998 3.5% 52,690 3.5% [3] 347 0.38

Total Expenses $648,137 $796,471 $5,240 $5.74

Expenses as % of EGI 42.7% 52.9%

Net Operating Income $870,851 $708,961 $4,664 $5.11

NOTES ►► [2] EOY 1 Property taxes are 80% of the proposed sale value by the Jefferson County Mil rate of 2.726355

►► [3] Market management fee has been underwritten

►► [4] $250 per unit per annum is used for replacement reserves

FINANCIAL ANALYSIS 25 This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap section 4 Rent Comparables LEXINGTON ON THE LAKE

152 UNITS 6

5 2 3 1 4

7

28 RENT COMPARABLES RENT COMPARABLES // Lexington on the Lake

# OF DISTANCE AVG AVG RENT AVG RENT PROPERTIES UNITS FROM SUBJECT SQ FT PER UNIT PER SQ FT OCCUPANCY

LEXINGTON ON THE LAKE 152 912 $867 $0.96 86% // 6195 N. Major Drive, Beaumont, TX, 77713

CHELSEA 144 3.4 Mi 983 $1,156 $1.20 96% 1 // 4630 Collier Street, Beaumont, TX 77706

BREAKWATER BAY 176 1.3 Mi 848 $952 $1.12 94% 2 // 4375 N. Major Drive, Beaumont, TX 77713

EAGLES LANDING 196 1.4 Mi 894 $1,135 $1.31 96% 3 // 3980 N. Major Drive, Beaumont, TX 77713

THE TRACE AT NORTH MAJOR 110 1.4 Mi 850 $760 $0.90 96% 4 // 3875 N. Major Drive, Beaumont, TX 77713

THE POINTE 152 2.5 Mi 941 $1,055 $1.17 96% 5 // 4165 Old Dowlen Road, Beaumont, TX 77713

CREEKWOOD VILLAGE 152 2.8 Mi 772 $802 $1.04 93% 6 // 7655 Park North Drive, Beaumont, TX 77708

CYPRESS BEND 192 4.1 Mi 846 $870 $1.04 92% 7 // 1605 Cornerstone Court, Beaumont, TX 77706

Average 159 2.4 Mi 881 $950 $1.09 94%

RENT COMPARABLES 29 LEXINGTON ON THE LAKE Total Total Year 6195 N. Major Drive, Beaumont, TX, 77713 152 Units 86% Occupancy Built 2000

UNIT TYPE # OF UNITS SQUARE FEET RENT RENT/SF

1 Bed / 1 Bath 42 696 $750 $1.08

2 Bed / 2 Bath 74 946 $850 $0.90

3 Bed / 2 Bath 36 1,096 $1,000 $0.91

TOTAL/WTD. AVG. 152 913 $867 $0.96

1 CHELSEA Total Total Year 4630 Collier Street, Beaumont, TX 77706 144 Units 96% Occupancy Built 1999

UNIT TYPE # OF UNITS SQUARE FEET RENT RENT/SF

1 Bed / 1 Bath 36 618 $899 $1.45

1 Bed / 1 Bath 36 739 $950 $1.29

2 Bed / 1 Bath 8 969 $1,190 $1.23

2 Bed / 1 Bath 8 1,005 $1,190 $1.18

2 Bed / 2 Bath 20 1,037 $1,205 $1.16

2 Bed / 2 Bath 20 1,075 $1,205 $1.12

3 Bed / 2 Bath 8 1,182 $1,305 $1.10

3 Bed / 2 Bath 8 1,239 $1,305 $1.05

TOTAL/WTD. AVG. 144 983 $1,156 $1.20 30 RENT COMPARABLES 2 BREAKWATER BAY Total Total Year 4375 N. Major Drive, Beaumont, TX 77713 176 Units 94% Occupancy Built 2004

UNIT TYPE # OF UNITS SQUARE FEET RENT RENT/SF

1 Bed / 1 Bath 48 630 $788 $1.25

2 Bed / 1 Bath 40 795 $811 $1.02

2 Bed / 2 Bath 64 911 $908 $1.00

3 Bed / 2 Bath 24 1,056 $1,301 $1.23

TOTAL/WTD. AVG. 176 848 $952 $1.12

3 EAGLES LANDING Total Total Year 3980 N. Major Drive, Beaumont, TX 77713 196 Units 96% Occupancy Built 2003

UNIT TYPE # OF UNITS SQUARE FEET RENT RENT/SF

1 Bed / 1 Bath 56 620 $950 $1.53

1 Bed / 1 Bath 56 711 $975 $1.37

1 Bed / 1 Bath 20 802 $1,075 $1.34

2 Bed / 2 Bath 40 1,040 $1,225 $1.18

3 Bed / 2 Bath 24 1,295 $1,450 $1.12

TOTAL/WTD. AVG. 196 894 $1,135 $1.31

RENT COMPARABLES 31 4 THE TRACE AT NORTH MAJOR Total Total Year 3875 N. Major Drive, Beaumont, TX 77713 110 Units 96% Occupancy Built 1984

UNIT TYPE # OF UNITS SQUARE FEET RENT RENT/SF

1 Bed / 1 Bath 60 750 $735 $0.98

2 Bed / 1 Bath 50 950 $785 $0.83

TOTAL/WTD. AVG. 110 850 $760 $0.90

5 THE POINTE Total Total Year 4165 Old Dowlen Road, Beaumont, TX 77713 152 Units 96% Occupancy Built 2001

UNIT TYPE # OF UNITS SQUARE FEET RENT RENT/SF

1 Bed / 1 Bath 24 667 $880 $1.32

1 Bed / 1 Bath 2 675 $1,120 $1.66

1 Bed / 1 Bath 24 788 $885 $1.12

2 Bed / 2 Bath 24 1,081 $1,055 $0.98

2 Bed / 2 Bath 4 1,201 $1,200 $1.00

2 Bed / 2 Bath 74 1,232 $1,190 $0.97

TOTAL/WTD. AVG. 152 941 $1,055 $1.17

32 RENT COMPARABLES 6 CREEKWOOD VILLAGE Total Total Year 7655 Park North Drive, Beaumont, TX 77708 152 Units 93% Occupancy Built 1984

UNIT TYPE # OF UNITS SQUARE FEET RENT RENT/SF

1 Bed / 1 Bath 64 615 $635.00 $1.03

2 Bed / 2 Bath 48 800 $835.00 $1.04

2 Bed / 2 Bath 40 900 $935.00 $1.04

TOTAL/WTD. AVG. 152 772 $802 $1.04

7 CYPRESS BEND Total Total Year 1605 Cornerstone Court, Beaumont, TX 77706 192 Units 92% Occupancy Built 2008

UNIT TYPE # OF UNITS SQUARE FEET RENT RENT/SF

1 Bed / 1 Bath 104 647 $735 $1.14

1 Bed / 1 Bath 40 902 $915 $1.01

2 Bed / 2 Bath 48 989 $960 $0.97

TOTAL/WTD. AVG. 192 846 $870 $1.04

RENT COMPARABLES 33 This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap section 5 Market Overview

city overview

local attractions

demographics BEAUMONT TEXAS

POPULATION 119,500

36 MARKET OVERVIEW Quality of Life City Of Beaumont is a great place to live, work and play where metropolitan amenities blend with small town hospitality and BEAUMONT values. The YMBL Southeast Texas State Fair, the Beaumont Farmers Market, Heritage Happy Hour, the , Dogtober Fest, and the concerts of the Symphony of Southeast Texas are just a few of the events that bring Beaumont is located in southeast Texas, within the Beaumont- Port alive throughout the year. Beaumont boasts a great deal of history Arthur- Orange MSA, known as the Golden Triangle. The metro consists with many museums to visit including the famous - of the counties of Newton, Hardin, Jefferson and Orange and contains Gladys City Boomtown Museum, a recreated town showing life in 413,000 people and growing. The southeast Texas population is expected the early 1900’s at the start of the Texas oil boom. Numerous parks to grow 4.6% by 2020. Beaumont is the most populous city with 119,500 and other natural amenities in the area allow for many outdoor residents. The city is located off the Gulf of Mexico, approximately 90 miles recreational activities. Additionally, the affordable housing east of Houston and 60 miles west of Louisiana, providing businesses and market enhances the quality of life of Beaumont’s residents and companies with access to more than 2.5 million people within a two-hour newcomers. The cost of living in Beaumont is 7% below national drive. Beaumont benefits from being situated in between Houston, the average. nation’s fourth most populous city with booming energy, manufacturing, aeronautics, and transportation industries, and Lake Charles, Louisiana, the fastest growing city in Louisiana with more than $40 billion in planned Market Drivers capital investments for the region. Beaumont is easily accessible by land EXXONMOBIL REFINERY: The 2,400 acre complex immediately (Interstate 10), sea (), train and air (Jack Brooks Airport). southeast of downtown Beaumont employs over 2,000 people and pays over fifty million dollars in local taxes each year. The flagship Energy-sector activities play a significant part in the metro’s refinery of ExxonMobil produces over 2.8 billion gallons of fuel economy. Companies represented in the area include Gulf Oil, Humble annually. Oil, Magnolia Petroleum Co. and Exxon Mobil. The area is home to a large portion of the nation’s refining capacity. Aside from corporate PORT OF BEAUMONT: With annual economic activity exceeding headquarters and the energy industry, large employers represent diverse $1.8 billion and more than $111 million being contributed to the employment sectors and generate large staff counts. These include Conn’s, economy via re-spending and local consumption, the Port of Lamar University, Christus St. Elizabeth Hospital and Memorial Baptist Beaumont is the fourth busiest port in the United States and the Hospital. The Sabine-Neches Waterway ranks among the top in the U.S. nation’s busiest military port. in terms of commercial military outload and is one of the nation’s largest waterway by cargo volume. MARKET OVERVIEW 37 LOCAL ATTRACTIONS

Miles +/- to Lexington on the Lake:

Retail Eateries Parkdale Mall 2.4 Mi Sonic 0.5 Mi Dowlen Towne Center 2.9 Mi Jack in the Box 0.5 Mi Dollar General 0.5 Mi Church’s Chicken 0.7 Mi H-E-B plus! 3.7 Mi Waffle House 1.7 Mi Market Basket 1.6 Mi McDonald’s 2.0 Mi CVS 2.3 Mi Target 3.0 Mi Convenience Academy Sports 2.1 Mi Guess Elementary School 1.4 Mi & Outdoors Medical Center of 3.1 Mi Southeast Texas Recreation Shell 0.5 Mi Klein Park 0.4 Mi Planet Fitness 2.4 Mi Regal Star 12 2.8 Mi

38 MARKET OVERVIEW LEXINGTON ON THE LAKE

152 UNITS

Klein Park

Dowlen Towne Center

MARKET OVERVIEW 39 DEMOGRAPHICS // Lexington on the Lake LEXINGTON ON THE LAKE

48.01% 152 UNITS

71,995 GENDER Total Population Within 5 Mile Radius 51.99%

$99,800 1-Mile Average$79,369 Household Income within Median Property Value within 5 5 Mile Radius Mile Radius 3-Mile

5-Mile 29,558 1.56% Total Households in 5 Mile Radius From 2015

40 MARKET OVERVIEW POPULATION 1 Mile 3 Miles 5 Miles HOUSEHOLDS BY INCOME 1 Mile 3 Miles 5 Miles 2023 Projection 2018 Estimate Total Population 4,689 26,937 72,296 $200,000 or More 2.98% 4.23% 4.92% 2018 Estimate $150,000 - $199,000 4.75% 5.87% 5.19% Total Population 4,598 26,337 71,995 $100,000 - $149,000 13.56% 12.31% 12.97% 2010 Census $75,000 - $99,999 12.49% 10.94% 11.46% Total Population 4,300 25,054 70,914 $50,000 - $74,999 24.88% 22.84% 20.17% 2000 Census $35,000 - $49,999 12.06% 11.78% 12.35% Total Population 3,118 19,843 65,719 $25,000 - $34,999 8.73% 9.60% 9.29% Daytime Population $15,000 - $24,999 13.68% 11.72% 11.50% 2018 Estimate 3,042 24,518 68,674 Under $15,000 6.87% 10.69% 12.12% HOUSEHOLDS 1 Mile 3 Miles 5 Miles Average Household Income $74,989 $77,671 $79,369 2023 Projection Median Household Income $59,334 $57,323 $55,722 Total Households 1,962 11,629 30,020 Per Capita Income $30,917 $33,222 $32,670 2018 Estimate POPULATION PROFILE 1 Mile 3 Miles 5 Miles Total Households 1,889 11,238 29,558 Population By Age Average (Mean) Household Size 2.34 2.32 2.42 2018 Estimate Total Population 4,598 26,337 71,995 2010 Census Under 20 26.62% 26.39% 26.83% Total Households 1,785 10,726 29,211 20 to 34 Years 26.24% 24.18% 21.53% 2000 Census 35 to 39 Years 7.03% 6.85% 6.49% Total Households 1,275 8,382 26,892 40 to 49 Years 11.77% 11.81% 11.36% Growth 2015-2020 3.86% 3.48% 1.56% 50 to 64 Years 18.56% 19.13% 19.65% HOUSING UNITS 1 Mile 3 Miles 5 Miles Age 65+ 9.79% 11.67% 14.15% Occupied Units Median Age 33.26 34.63 36.22 2023 Projection 1,962 11,629 30,020 Population 25+ by Education Level 2018 Estimate 2,138 12,688 33,015 2018 Estimate Population Age 25+ 3,041 17,518 47,922 Owner Occupied 871 5,511 17,393 Elementary (0-8) 2.24% 2.57% 3.16% Renter Occupied 1,018 5,727 12,165 Some High School (9-11) 5.10% 5.07% 6.05% Vacant 248 1,450 3,456 High School Graduate (12) 31.87% 31.01% 29.39% Persons In Units Some College (13-15) 23.79% 23.51% 25.12% 2018 Estimate Total Occupied Units 1,889 11,238 29,558 Associate Degree Only 7.60% 7.84% 6.91% 1 Person Units 32.13% 32.88% 29.39% Bachelors Degree Only 19.45% 19.55% 19.14% 2 Person Units 31.92% 32.39% 33.71% Graduate Degree 8.10% 9.05% 9.15% 3 Person Units 16.94% 15.85% 16.41% Population by Gender 4 Person Units 11.33% 11.47% 11.97% 2018 Estimate Total Population 4,598 26,337 71,995 5 Person Units 4.87% 4.92% 5.31% Male Population 48.28% 48.19% 48.01% 6+ Person Units 2.86% 2.48% 3.20% Female Population 51.72% 51.81% 51.99%

MARKET OVERVIEW 41 INFORMATION ABOUT BROKERAGE SERVICES Texas law requires all real estate license holders to give the following information about brokerage services to prospective buyers, tenants, sellers and landlords. 11-2-2015

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.

Marcus & Millichap 9002994 [email protected] 972-755-5200 Licensed Broker /Broker Firm Name or Primary Assumed Business Name License No. Email Phone Tim A. Speck 432723 [email protected] 972-755-5200 Designated Broker of Firm License No. Email Phone Craig R. Swanson 538612 [email protected] 512-338-7800 Licensed Supervisor of Sales Agent/Associate License No. Email Phone

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 IABS 1-0 EXCLUSIVELY LISTED BY

KENT MYERS First Vice President Investments Austin, Texas Direct: (512) 338-7853 [email protected] License: TX 0561047