BROKER'S OPINION OF VALUE

132 OYSTER CREEK DR., LAKE JACKSON, TX 77566 A 80 Unit ● Class C ● Multi-Family Asset

4295 San Felipe ● Suite 355 ● , TX 77027 www.ketent.com PEARL AT OYSTER CREEK 132 OYSTER CREEK DR., LAKE JACKSON, TX 77566

APARTMENTS FOR SALE Market PRICE/UNIT: #VALUE! PRICE/SF: #VALUE! Units: 72 TERMS: ALL CASH Avg Size: 958 PRO-FORMA CAP RATE: #VALUE! Date Built: 1970 Rentable Sq. Ft.: 69,000 High Valuation #VALUE! Acreage: 3.83 Occupancy: 94% Mid Range Market Class: B-/C+ Low Valuation #VALUE!

SALIENT FACTS: ♦ Available on an Assumption Basis Only ♦ Extensively updated over the past 5 years ♦ Located in the Lake Jackson submarket ♦ Aggressive new on-site management ♦ Had a "to the studs" rehab in 2014 ♦ Lake Jackson is home to many petroleum plants including ♦ Great drive-by on Oyster Creek Dow Chemical

For More Information Please Contact:

Tom Wilkinson [email protected] 713-355-4646 ext 102

4295 San Felipe, Suite 355 Houston, TX 77027 www.ketent.com PEARL AT OYSTER CREEK 132 OYSTER CREEK DR., LAKE JACKSON, TX 77566

Physical Information Financial Information Existing Loan Parameters Operating Information Number of Units 72 Asking Price Market Mortgage Balance $3,770,000 Est Mkt Rent (Nov-18) $87,155 Avg Unit Size 958 Price Per Unit N/A Amortization (months) 360 12 Mo Avg $63,025 Net Rentable Area 69,000 Price Per Sq. Ft. N/A Debt Service $221,231 Physical Occ (Jan-19) 94% Land Area (Acres) 3.83 Stabilized NOI $434,872 Interest Only $18,436 Est Ins per Unit per Yr $733 Units per Acre 18.799 Stabilized Value Capped @ 7.% $6,212,454 Interest Rate 4.20% Property Tax Information Date Built 1970 Est Rehab/Upgrade @ $4,000/unit $288,000 Date Due 2/18/2023 Tax Rate (2018) 2.44113 Water Meter / Master Master Est. Entrepreneurial Profit $0 Est Res for Repl/Unit/Yr $300 2018 Tax Assessment $2,482,730 Elec Meter Master Est. Carry to Stabilization $30,000 Yield Maintenance Yes 2018 Taxes $60,607 Roof Style Flat Calculation of Value $5,894,454 Freddie Mac Small Loan Balance is not Est Future Tax Assessment $3,547,710 A/C Type: HVAC-Indiv *Current Value is Stabilized Value less Rehab, Profit and Carry resizable per the Mortgage Broker Est Future Taxes $86,604

INCOME MODIFIED ACTUALS PRO-FORMA PRO-FORMA INCOME Current Street Rent with a 5% Increase 1,098,153 $91,513 / Mo Estimated Gross Scheduled Income 1,098,153 $91,513 / Mo Estimated Loss to Lease (2% of Total Street Rent) (21,963) 2% Estimated Vacancy (11% of Total Street Rent) (120,797) 11% Estimated Concessions and Other Rental Losses (5% of Total Street Rent) (54,908) 5% Estimated Utilities Income $ / Unit / Yr Estimated Other Income 48,584 $675 / Unit / Yr Estimated Total Rental Income 949,069 ESTIMATED TOTAL PRO-FORMA INCOME 949,069 $79,089 / Mo

12 Mo Avg Income Annualized $756,299 11/18 operating statement EXPENSE Nov 2018 YTD Expenses Estimated Expenses Fixed Expenses Fixed Expenses Estimated Fixed Expenses Taxes $62,354 $866 per Unit 11/18 operating statement $86,604 $1,203 per Unit 2018 Tax Rate & Future Assessment Insurance $52,757 $733 per Unit Per owner, feels high! $52,757 $733 per Unit Estimated Total Fixed Expense 115,112 $1,599 per Unit 139,362 $1,936 per Unit Utilities Utilities Estimated Utilities Electricity $78,686 $1,093 per Unit $78,686 $1,093 per Unit Water & Sewer $40,561 $563 per Unit $40,561 $563 per Unit Gas $9,500 $132 per Unit $9,500 $132 per Unit Trash $17,917 $249 per Unit $17,917 $249 per Unit Total Utilities 146,664 $2,037 per Unit 146,664 $2,037 per Unit

Other Expenses Other Expenses Estimated Other Expenses General & Admin & Marketing $38,703 $538 per Unit $18,720 $260 per Unit Repairs & Maintenance $80,609 $1,120 per Unit includes deferred maint. $36,000 $500 per Unit Labor Costs $131,931 $1,832 per Unit higher than normal $100,800 $1,400 per Unit Contract Services $13,089 $182 per Unit $13,089 $182 per Unit Management Fees $30,794 4.07% $428 per Unit $37,963 4.00% $527 per Unit Total Other Expense 295,127 $4,099 per Unit 206,571 $2,869 per Unit

Total Operating Expense 556,903 $7,735 per Unit 492,597 $6,842 per Unit

Reserve for Replacement 21,600 $300 per Unit 21,600 $300 per Unit

Total Expense 578,503 $8,035 per Unit 514,197 $7,142 per Unit Net Operating Income (Actual Underwriting) 177,797 434,872

Asking Price Market Market Cap Rate #VALUE! #VALUE! Proposed Debt 3,770,000 3,770,000 Equity #VALUE! #VALUE! Estimated Debt Service 221,231 221,231 Cash Flow (43,435) 213,640 Cash on Cash #VALUE! #VALUE!

NOTES: ACTUALS: Income and Expenses calculated using owner's 11/18 operating statement. PRO FORMA: Income is Pro Forma as Noted. Taxes were calculated using 2018 Tax Rate & Future Assessment. Insurance is estimated. Management Fees calculated as 4.% of Gross Income, Other expenses are Estimated for the Pro Forma.

DISCLAIMER: The information contained herein has been obtained from sources that we deem reliable. We have no reason to doubt the accuracy of the information, but we have not verified it and make no guaranty, warranty or representation about it. It is your resonsibility to independently confirm its accuracy and completeness. We have not determined whether the property complies with deed restrictions or any city licensing or ordinances including life safety compliance or if the property lies within a flood plain. THE PROSPECTIVE BUYER SHOULD CAREFULLY VERIFY EACH ITEM OF INCOME OR EXPENSE AND PERFORM OR HAVE PERFORMED ANY INSPECTIONS TO VERIFY POSSIBLE CONTAMINATION BY ASBESTOS, LEAD PAINT, MOLD OR ANY OTHER HAZARDOUS SUBSTANCES. The owner reserves the right to withdraw this listing or change the price at anytime without notice during the marketing period.

1/8/2019 PearlatOysterCreek PROPERTY OVERVIEW PEARL AT OYSTER CREEK 132 OYSTER CREEK DR., LAKE JACKSON, TX 77566 Keymap: Construction Quality: B PROPERTY INFORMATION AMENITIES EXISTING MORTGAGE TAXING AUTHORITY - BRAZORIA COUNTY Age: 1970 Access Gates Park & Ride Nearby Mortgage Balance $3,770,000 ACCT NO: 223944 Elec Meter: Master Cable Ready Walk-In Closets Amortization 360 City of Lake Jackson $0.335200 A/C Type: HVAC-Indiv Club House School Bus Pick-up Interest Only $18,436 Velasco Drainage District $0.084120 Water: Master Laundry Rooms Shuttle Route Type Freddie Mac Brazoria County $0.367914 Wiring: Copper Mini Blinds Patios/Balconies Assumable Yes Brazosport College $0.298500 Roof: Flat Pool Monthly Escrow Yes Port Freeport $0.040100 Paving: Concrete Bookshelves Origination Date 1/21/2011 Road and Bridge Fund $0.060000 Materials: Brick/Wood Outside Storage Due Date 2/18/2023 Brazosport ISD $1.255300 # of Stories: 2 Ceiling Fans Interest Rate 4.20% Parking: Open Buildings: 12 Yield Maintenance Yes 2018 Tax Rate/$100 $2.441134 Units/Acre: 18.80 Transfer Fee 1%+app+legal 2018 Tax Assessment $2,482,730 *In Select Units Not Resizable - Freddie Mac small loan

COLLECTIONS

Total $ 756,299 $80,000

Dec 2017 $ 64,388 12 Mo Avg $ 63,025 $70,000 Jan 2018 $ 66,970 $60,000 Feb 2018 $ 66,229 $50,000 Mar 2018 $ 59,466 9 Mo Avg $ 62,079 Apr 2018 $ 60,025 $40,000 May 2018 $ 68,500 $30,000 June 2018 $ 62,919 6 Mo Avg $ 61,787 $20,000 July 2018 $ 63,502 $10,000 Aug 2018 $ 63,444 $- Sept 2018 $ 63,078 3 Mo Avg $ 60,285 Oct 2018 $ 62,829 Nov 2018 $ 54,949

PLEASE DO NOT VISIT THE SITE WITHOUT AN APPOINTMENT MADE THROUGH THE BROKER.

PROPERTY HIGHLIGHTS

The Pearl at Oyster Creek Apartments is a two story, garden-style, apartment community located in the Lake Jackson submarket. The asset was built in 1970. Residents enjoy ample amenities which include: mini-blinds, kitchen pantries, ceiling fans, laundry facilities, patios and balconies, walk-in closets, wood burning fireplaces.

Currently there are no reported leasing concessions. The property appears to have excellent driveby. On a recent tour, the street was packed.

Per owner, some roofs have been replaced and not all units have been updated. There is a small vacant tract that reportedly was a 12 unit apartment building but it had a fire and the building was scraped. The owner says that per the City of Lake Jackson, this could be rebuilt on the same footprint as was previously in place, but no other construction, such as a miniwarehouse or retail is permissable. This site could be used for a fancy dog park or as a children's playground. The property charges $35/mo for covered parking.

The Brokers feel that the exterior paint and landscaping could be updated as well as the interiors. New on site management in place should increase in place collections.

Loan terms: WRT Freddie SBL, interest only until November with a 20 year term, 30 year amortization and 4.2% fixed rate for 7 years, with the last 13 yrs floating based on LIBOR + 2.75% Per owner, there is a contract with Coinmach. However, half the property has washers/dryers in unit so, the laundry facility does not generate much revenue. Ideally, shrinking the laundry room and making it usable as a party space would help. The owner also suggests adding a playground and perhaps a soccer field on the vacant lot. 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. PEARL AT OYSTER CREEK 132 OYSTER CREEK DR., LAKE JACKSON, TX 77566 Unit Mix UNIT MIX Market Floor Plan No. Units Sq Ft Total SqFt Total Rent Rent/SF Rent

2 Bed/1 Bath 28 875 24,500 $1,095 $30,660 $1.25

Washer/Dryer 2 Bed/1 Bath 12 875 10,500 $1,195 $14,340 $1.37

Washer/Dryer 2 Bed/1 Bath 12 875 10,500 $1,250 $15,000 $1.43

3 Bed/2 Bath 8 1,175 9,400 $1,295 $10,360 $1.10

3 Bed/2 Bath 11 1,175 12,925 $1,395 $15,345 $1.19

Washer/Dryer 3 Bed/2 Bath 1 1,175 1,175 $1,450 $1,450 $1.23

72 958 69,000 $1,210 $87,155 $1.26 Total Average Total Sq. Average TOTALS AND AVERAGES Total Rent Average Rent/ SF Units Sq. Ft. Feet Rent/Unit Source: 11/28/18 Rent Roll

UNITS BY TYPE

28%

72%

2 Bed/1 Bath 3 Bed/2 Bath PROPERTY LOCATION PEARL AT OYSTER CREEK 132 OYSTER CREEK DR., LAKE JACKSON, TX 77566

DIRECTIO PEARL AT OYSTER CREEK 132 OYSTER CREEK DR., LAKE JACKSON, TX 77566 RENT COMPARABLES PEARL AT OYSTER CREEK 132 OYSTER CREEK DR., LAKE JACKSON, TX 77566

RENT COMPARABLES (2018 ADS & Enriched Data) Sorted by Avg Rent/Unit Property Name Yr Blt Occ #Units Avg SF Avg Rent EWG P/SF

1 Monaco Villas 1978 82% 160 792 $930 EWG 1.174 460 W Highway 332

2 Palms of Lake Jackson 1972 95% 184 1074 $968 EWG 0.901 440-45 Highway 332

3 Villages of Lake Jackson 1999 95% 174 869 $1,196 EW 1.376 504 Highway 332

4 Gateway at Lake Jackson 1999 80% 160 1058 $1,227 EW 1.160 111 Loganberry St

5 Oaks of Lake Jackson 1975 95% 144 934 $1,276 EW 1.366 127 Plantation Dr West *Resident Pays E(Electric), W(Water), G(Gas) M = master meter M rents reduced by .15/mo Totals/Averages Comps 1985 89% 164 945 $1,130 $1.195 Pearl at Oyster Creek M 1970 94% 72 958 $1,067 EWG $1.113 132 Oyster Creek Dr Sub-Market Averages(Lake Jackson) 86% 10,525 825 $879 $1.065 Houston Market Avgs 85% 656,042 882 $988 $1.125

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5 4 SALES COMPARABLES PEARL AT OYSTER CREEK 132 OYSTER CREEK DR., LAKE JACKSON, TX 77566

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

1 Lake Vue Pending $26,280,000 277,984 $73,000 $94.54 1980 360 200 Brazoswood

2 Crescentwood Pending $17,064,000 186,288 $79,000 $91.60 1983 216 100 Lakeview

3 Shadow Park Pending $13,172,000 126,480 $74,000 $104.14 1980 178 420 Garland

4 Oyster Creek 217 $17,460,000 176,752 $86,866 $98.78 1976 201 105 Anyway

5 Treasure Bay 2/17 $16,590,000 157,464 $82,950 $105.36 1972 200 415 Garland Dr

Totals/Averages Comps $18,113,200 184,994 $79,163 $98.88 1978 231

Pearl at Oyster Creek M Market 69,000 1970 72 132 Oyster Creek Dr

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1 HOUSTON, 2 0 1 8 B A C K O N T R A C K

REGION IN PERSPECTIVE

The City of Houston, the largest city in Texas and the fourth largest city in the United States, is located on the coastal prairies of southeast Texas and is home to a diverse array of industries and cultures. Houston is located in Harris County, the nation’s third most populous county. The Houston region, officially designated as the Houston - Woodlands - Sugar Land Metropolitan Statistical Area (MSA), comprises Harris County and eight other counties: Austin, Brazoria, Chambers, Fort Bend, Galveston, Liberty, Montgomery, and Waller. The Houston MSA has a population of approximately 6,772,470 according to new U.S. Census Bureau estimates as of July 1, 2016. The nine county metropolitan area is the fifth-largest metropolitan area in the nation and covers 9,444 square miles. The most urbanized portions of the Houston area are in Harris County, the southern part of Montgomery County, and the eastern section of Fort Bend County. Houston is home to the tenth largest port in the world and is in close proximity to Mexico, a key trading partner. It has a temperate climate and an affordable cost of living. Source: Greater Houston

Partnership - Dec 2017

Ever since its founding as a port city, Houston has been a dynamic international marketplace, attracting capital and people from all over the world. Today, Houston is the nation's fourth largest economy, and what Forbes calls "America's next great global city."

With a population of 2,303,482, according to estimates by the U.S. Census Bureau as of July 1, 2016, the population base includes a wide variety of racial and ethnic groups that give Houston a rich diversity and cosmopolitan feel. Among the nation’s

of metropolitan areas, the Houston MSA ranked fourth in number of Hispanics (2,429,487), seventh in number of Blacks (1,122,767) third and seventh in number of Asians (497,099), according to the Census Bureau’s 2015 American Community Survey. Harris County Statistical covers 1,778 square miles, enough space to fit New York City, Philadelphia, Boston, Chicago, Seattle, Austin and , with room Liberty, still to spare. At 655 square miles, the City of Houston is larger than six European countries, ranking just below Luxembourg and Bureau above Malta. 444 and The City of Houston lies in three counties: Harris, Fort Bend and Montgomery. Harris County contains the bulk of the City of Houston Mexico, with small portions of the city lying in Fort Bend and Montgomery counties. Houston is the county seat, or administrative center, of Harris County. Harris County contains all or part of 34 incorporated cities. The Houston MSA includes 124 incorporated Houston communities.

Source: Greater Houston Partnership - Dec 2017

If the MSA were an independent nation its economy would rank 24th largest in the world, behind Taiwan ($523.0 billion), but ahead of Sweden ($497.9 billion).

182 nonstop destinations

Since the dramatic fall of oil prices that occurred in late 2014, Houston’s economy slowed significantly and grew at a lesser pace in 2015, 2016 and 2017 than its’ average annual rate. Even though Houston’s economy saw accelerated growth in 2017, it was well below Houston’s potential. Future growth forecasts are promising as local economists forecast about 45,000 jobs or slightly more in 2018 and expect that number to increase annually through 2021.

.1000 Houston Firms Report

a Foreign Ownership nation’s ) .5,000+ Houston Companies County are doing Business Abroad maintain trade and commercial offices in room Houston and .90+ Nations have Consular 35 active foreign chambers of Representation in Houston

Houston .Houston has the 3rd Largest of Foreign Representation in the incorporated Nation GDP expected to more than double between '15 and '40

Source: Greater Houston Partnership - Dec 2017 Harvey, tax code changes may spur apartment demand Houston’s dumped occurred destroying As the energy capital of the world, Houston was brought interruptions, slowed along on a roller coaster ride. Despite the tumult that occurred in energy, Houston still managed to produce job retail , Houston’s strategic growth primarily in industries dependent on population then Even growth (e.g., public education, health care, leisure and location and core strengths, hospitality). Job losses occurred primarily in sectors that consumer accelerated including an expanding include Houston’s economic base (e.g., oil and gas, replacement healthcare sector, cutting-edge Houston’s manufacturing). medical advancements, promising technological breakthroughs or across industries and strong to import/export trade activity (No. 1 US port in foreign tonnage), uniquely position it to play a vital role in meeting national and Houston has the largest export global market demands. Houston has and will continue to stand as market in the U.S. a leader among U.S. metros and the world. .Port of Houston Ranks 1st in import tonnage for 26 straight years

.Port of Houston is the largest Gulf Coast container port

.Port of Houston ranks 2nd in total tonnage for 24 straight years

.The is the world's largest medical complex with $3 billion in construction projects under

.The Texas Medical Center has 50 million developed square feet Source: Greater Houston Partnership - Dec 2017 2 0 1 8 E c o n o m i c F o r e c a s t mortgage owning that

Harvey, tax code changes may year,

few spur apartment demand Bahrami Houston’s economy was jolted in August 2017 when Hurricane Harvey slammed the Texas Gulf Coast and foreclosures leverage," dumped over 50 inches of rain over a three-day period. The event caused widespread flooding, destroying homes, businesses and infrastructure. Further, the historical rainfall totals caused supply chain year interruptions, halted distribution logistics and shut down the Port of Houston, manufacturing plants and retail stores for at least a week. Houston area retail spending rose the week leading up to the event and landlords then plummeted 58.7% the week after. The good news is that Houston’s resiliency lead to an uptick in thousands consumer spending within weeks after the event, mostly caused by area residents purchasing McClenny replacement items damaged by the storm. Boriack

Houston Landlords are Bullish Source: Houston Chronicle 1/24/18

Houston apartment landlords are bullish going into the new year amid an improving job market, lower supply pipeline and a post-Harvey environment in which many Houstonians flooded out of their homes are likely to remain renters.

."The numbers of people moving back to homes is going to be much less than anticipated," multifamily analyst Bruce McClenny said Wednesday morning at an annual meeting of the Houston Apartment Association.

. McClenny estimates about 19,000 units were leased as a result of the devastating August hurricane. Several thousand could stay in apartments.

.A healthier job market in 2018 will bolster demand for rentals.

.When the price of oil was $52 a barrel, Patrick Jankowski, senior vice president of research for the Greater Houston Partnership, forecast 45,500 jobs would be created this year. It closed Wednesday at $65.61. "If oil prices stay above $60 for two quarters, my forecast will be low," he said at the Galleria-area industry event.

.Camden Property Trust recently started construction on an apartment tower downtown after it had been delayed during the energy downturn. The company's CEO said Wednesday that changes in the federal tax code will benefit renters.

."When you double the standard deduction and limit mortgage deduction ... you have shifted the incentives for IN SUMMARY owning a home versus renting," Ric Campo said. "Doubling that creates more income for our residents." "When you double the

.Local apartment rents could grow as much as 2 percent this standard deduction and year, said McClenny, president of ApartmentData.com. limit mortgage deduction ... .Despite low oil prices and an oversupply of rental units the last few years, the market fared reasonably well, said Cyrus you have shifted the Bahrami of Alliance Residential. "We didn't have a lot of foreclosures. We structured our deals better, with less incentives for owning a leverage," Bahrami said, referring to the industry as a whole. home versus renting," Ric .The market hit bottom in 2016 and began to turn around last year. Campo said. "Doubling that

creates more income for .The hurricane damaged some 15,662 units and by year's end landlords saw an annual average of $42 in rent growth as our residents." thousands of flooded homeowners leased apartments, McClenny said.

."We saw the concessions go away," said landlord John Boriack. Source: Houston Chronicle 1/24/18

Demand Surge Puts Houston on Top in 4Q 2017

Houston was the nation's leader for apartment demand in the 4th quarter 2017 as a flurry of leasing activity following Hurricane Harvey drove up the metro's overall numbers. The big surge in demand provided a shot in the arm to an apartment market which had struggled over the past two years.

The number of occupied units in the Houston metro jumped by 13,755 in the final three months of 2017. Houston's demand figure was nearly three times that of the nationl's #2 metro, Dallas, which absorbed 4,715 units in the quarter.

Houston's elevated demand volumnes at the end of 2017 were bolstered by displaced residents turning to apartments for alterntive housing. Coupled with the changes to the tax laws the incentive for home ownership in the 25 to 40 year age group has lost the appeal it once had. Millinials are increasingly lured by apartment living that gives them more economic and personal freedom, free from the upkeep of a home. Source: realpage.com 2/7/18

IN SUMMARY The storm passed, businesses reopened, employees returned to work, and recovery efforts were underway. Houstonians started rebuilding their homes and replacing storm-damaged furniture and clothing. Families living in hotels and households without kitchens ate at local restaurants and cafés. limit mortgage deduction ... Businesses took on contract workers to help with the cleanup. And wholesalers filled their warehouses and added to their payrolls to better serve the growing retail and construction trade.

Q4/17 proved to be the best fourth quarter on record for overall job growth in Houston. The region added 66,200 jobs the last three months of the year. 3 Construction, retail, restaurants, wholesale trade Campo said. "Doubling that and employment services set records for job growth in the quarter. Granted, some of the Q4 job growth

resulted from hiring that didn’t occur in September being rolled into October. But even if one subtracts anticipated September growth (10,000 jobs) from Q4/17, the region

experienced its second best quarter on record. Source: Greater Houston Partnership March 2018

The Long-Term Outlook

The Perryman Group, a Texas-based economic and financial analysis firm, recently released its latest GDP, population and employment forecasts. The group expects the Houston metro area’s GDP to grow at a compound annual growth rate (CAGR) of 3.1 percent from ’15 to ’40 and reach $998.8 billion in ’40. The fastest growing sectors during this period are projected to be in management of companies and enterprises (4.3 percent CAGR), administrative and support and waste management (4.0 percent), and health care and social assistance (3.9 percent). Houston will continue to account for approximately 30 percent of the state’s GDP throughout the forecast period. The Perryman Group expects Texas’ GDP to grow at an annual rate of 3.2 percent from ’15 to ’40, outpacing the U.S. rate of 2.7 percent. The firm sees Houston’s population growing at a CAGR of 1.6 percent from ’15 to ’40, reaching 9.9 million in ’40. Wage and salary employment is expected to increase 1.7 percent annually to 4.7 million in ’40. The Houston metro area is forecasted to add 3.3 million residents and an additional 1.6 million jobs during this period, accounting for 28.0 percent of Texas’ population growth and onefourth of the state’s employment gains.

Source: Greater Hoston Partnership - March 2018 PEARL AT OYSTER CREEK 132 OYSTER CREEK DR., LAKE JACKSON, TX 77566 Lake Jackson/Freeport

Lake Jackson is located in south central Brazoria County, Texas, within the Houston-Sugar Land- DOW CHEMICAL EXPANSION HOUSTON (KTRK) March, 2013 -- Thousands of jobs are going to be available now that . Baytown Metropolitan Area Dow Chemical is expanding again. It's all due to natural gas derivatives, and the move It is bordered to the east by the cities of Clute and Richwood, and to the southwest will bring jobs to the Freeport area. by the Brazos River. , the Nolan Ryan Expressway, runs through the city, leading 10 miles north to Angleton, the county seat, 52 miles north Dow Chemical announced plans for its second and third major plant expansion in to downtown Houston, and 9 miles southeast to Freeport on the Gulf of Mexico. Brazoria Tuesday. One will be an herbicide plant and the other two are production The Brazosport Center for the Arts and Sciences in Lake Jackson offers an art facilities for natural gas components. That means a lot of jobs in a still-recovering gallery, two theaters, a museum of natural science, and a nature center and economy. For a small Texas town, this is an especially big deal. In the next five to planetarium, while the city maintains a number of parks, including Wilderness Park, seven years, up to 5,000 construction jobs to build three new chemical plants. "It does a large undeveloped area that extends to the bank of the Brazos. take my breath away. Three large investments all in 60 days, building some of the planet's most valuable building blocks for products that 95 percent of everything you The Dow Chemical Company and the Brazosport Independent School District are touch every day needs these building blocks," Dow Chemical Chairman Andrew Liveris the two major employers. Dow is considered to have given birth to the idea of Lake said. From plastic bottles, to parts of the cars you drive and the phones you use to Jackson in 1941 as a community for workers at its Freeport plant, and is referred to communicate, the natural gas derivatives produced there will mean big money for by some as "Daddy Dow." Its population is said to have diversified beyond its southeast Texas. It's made possible, in part, by a huge investment by the state of Texas chemical roots and Lake Jackson is now home to other chemical and manufacturing and what Gov. Rick Perry calls the right kind of environment to attract big business. facilities along with many other types of businesses. In Lake Jackson's early days, "They're not coming here just because we've got great music and beer and BBQ, they're Dow helped to create a booming economy and it continues to do that today with its coming here because they know that they can keep more of what they work for and they expansion project that is estimated to bring nearly 2,000 employees to the area. can in turn pour that back into this company," Perry said. But it's not just the business climate that made this enormous expansion possible for Dow Chemical. It's also the The unemployment rate in Lake Jackson, TX, is 4.8%. Future job growth over the incredibly low cost of natural gas. Domestically produced, it's much cheaper than oil right next ten years is predicted to be 36.40%. The income per capita is $32,965, which now and makes production of those chemical building blocks all the more desirable. includes all adults and children. The average household income is $80,013. Source: Wikipedia, Jun e 17, 2014 "The availability of low-cost fuel, low-cost natural gas, will help reindustrialize certain sectors of the American economy," said Bob Tippee with the Oil & Gas Journal. Eventually, the cost of natural gas will go up, but as long as it stays low, expect this influx of business and jobs to be just the beginning. "You can't write the history of Dow without a chapter or two on Texas and I'd like to think that the reverse is true as well,"

Liveris said.

On top of the thousands of construction jobs, once those three plants are complete, Dow Dow’s Freeport site (prior to current expansion) has more than estimates they'll collectively employ 300 full-time workers. 4,200 employees. More than 88 percent live in Brazoria County. (Copyright ©2013 KTRK-TV/DT. All Rights Reserved.) Southern Brazoria County is home to 79 percent. Lake Jackson

.

PEARL AT OYSTER CREEK 132 OYSTER CREEK DR., LAKE JACKSON, TX 77566 Lake Jackson/Freeport

DOW CHEMICAL EXPANSION

Rendering of the new Dow Chemical Co. Research and Development Center in Lake Jackson

The Dow Chemical Company is building a new research and development center in Lake Jackson, near its massive chemical complex in Freeport. The new Texas Innovation Center will replace the Michigan-based chemical giant’s current R&D facility in Freeport. When complete, which is expected in 2016, the center will have

lab and office space for more than 2,000 employees. Square footage of the space was not immediately available. “The enhanced capabilities at our new location will continue the tradition of R&D expertise in Texas by delivering leading-edge technology,” Andrew Liveris, Dow’s chairman and CEO, said in a statement. Dow added that the center is designed to lead to advances in the innovation and commercialization of chemical solutions that impact the food packaging, personal care and automotive industries. Houston-based Core Real Estate LLC is developing the center, and Houston-based Kirksey Architecture is designing it.

Dow did not immediately respond to inquires about the R&D center. Dow is investing in much more than a new innovation center in Houston, though. The company, which employs more than 6,000 people in the Houston area, is also pursuing a more than $4 billion petrochemical expansion throughout the Gulf Coast. Many of the projects in this expansion are adding capacity to the company’s operations in Freeport.

Currently, Dow’s Texas plants produce 44 percent of the company’s products sold in the U.S. However, with the current expansions underway, this number could increase. “In the next five years our (Freeport) site will see remarkable growth in manufacturing and the Texas Innovation Center will bolster our R&D operations on a long-term path forward as well,” Earl Shipp, Dow’s vice president of U.S. Gulf Coast operations, said in a statement. Outside of the expansions, Dow is in the process of restructuring its chlorine busines, which could impact the company’s Freeport site.

Source: Houston Business Journal, March 11, 2014 Dow’s Freeport site (prior to current expansion) has more than 4,200 employees. More than 88 percent live in Brazoria County. Southern Brazoria County is home to 79 percent. Lake Jackson is where most employees live (41 percent).

. PEARL AT OYSTER CREEK 132 OYSTER CREEK DR., LAKE JACKSON, TX 77566

DEMOGRAPHICS

1 Mile 3 Mile Radius 5 Mile Radius Radius 2017 Estimated Population 7,141 22,622 35,942 2022 Projected Population 7,981 25,256 40,254 24% 2010 Census Population 7,314 22,113 35,034 2000 Census Population 7,679 22,427 33,185 6% 58% Projected Annual Growth 2017 to 2022 2.4% 2.3% 2.4% 4% 8% POPULATION Historical Annual Growth 2000 to 2017 -0.4% 0.1% 0.5%

2017 Median Age 35.3 36.5 35.3 White Black Asian Other Hispanic

2017 Estimated Households 2,895 8,837 14,122 2022 Projected Households 3,194 9,744 15,613 2010 Census Households 2,866 8,370 13,348 2000 Census Households 2,762 8,022 12,064

Projected Annual Growth 2017 to 2022 2.1% 2.1% 2.1% HOUSEHOLDS Historical Annual Growth 2000 to 2017 0.3% 0.6% 1.0% 24.0% Non-Hispanic 2017 Estimated White 76.6% 75.0% 74.1% Hispanic 2017 Estimated Black or African American 10.2% 10.9% 11.3% 76.0% 2017 Estimated Asian or Pacific Islander 5.1% 5.8% 4.9% 2017 Estimated American Indian or Native Alaskan 0.6% 0.5% 0.5% 2017 Estimated Other Races 7.4% 7.8% 9.1%

2017 Estimated Hispanic 24.0% 22.7% 26.4% RACE AND ETHNICITY

2017 Estimated Average Household Income $105,303 $110,939 $106,216 2017 Estimated Median Household Income $74,582 $78,659 $74,311

INCOME 2017 Estimated Per Capita Income $42,707 $43,348 $41,752

2017 Estimated Elementary (Grade Level 0 to 8) 3.4% 3.7% 4.1% $120,000 $105,303 2017 Estimated Some High School (Grade Level 9 to 11) 4.6% 4.1% 5.0% 2017 Estimated High School Graduate 18.6% 21.6% 24.7% $100,000 2017 Estimated Some College 32.3% 30.6% 29.5% 2017 Estimated Associates Degree Only 11.1% 10.6% 10.3% $80,000 $72,073 (AGE 25+)

EDUCATION 2017 Estimated Bachelors Degree Only 20.9% 19.9% 18.0% 2017 Estimated Graduate Degree 9.1% 9.4% 8.4% $60,000

$40,000 2017 Estimated Total Businesses 700 973 1,325 2017 Estimated Total Employees 7,134 10,595 14,065 $20,000 2017 Estimated Employee Population per Business 10.2 10.9 10.6 BUSINESS 2017 Estimated Residential Population per Business 10.2 23.3 27.1 $0 Subject Houston PEARL AT OYSTER CREEK 132 OYSTER CREEK DR., LAKE JACKSON, TX 77566 PEARL AT OYSTER CREEK 132 OYSTER CREEK DR., LAKE JACKSON, TX 77566 PEARL AT OYSTER CREEK 132 OYSTER CREEK DR., LAKE JACKSON, TX 77566 PEARL AT OYSTER CREEK 132 OYSTER CREEK DR., LAKE JACKSON, TX 77566 A 268 UNIT CLASS "B-/C+" GARDEN APARTMENT COMMUNITY

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