MULTIFAMILY OFFERING | SHOWN BY APPT. WITH LISTING AGENTS

Forest Hills INVESTMENT HIGHLIGHTS

Improved Updated Financials and NOI

210 Units | Strong Rental Growth Area

Located in Austin’s Fastest Growing and Trendy Submarket | Southeast Riverside

Great Value Add Opportunity

Underutilized Amenity Spaces

Walking Distance to Lady Bird Lake and Three Miles to Downtown | U.T.

Built in Two Phases (1983 and 1973)

Easy Access to CBD and IH-35 via Riverside

2201 Willow Creek Dr. | Austin, TX 78741

Ellen Muskin - 512.343.2700 x1 Daniel Elam - 512.343.2700 x2 [email protected] [email protected]

Investment Opportunity

• Very well located just minutes from downtown, Lady Bird Lake and the associated hike-and-bike trails. This submarket has benefited greatly from unprecedented redevelopment along Riverside Drive. The area now flourishes with brand new upper-end construction, new retail establishments, music venues and situated be- tween Class A office and industrial facilities nearby. View www.austintexas.gov/eastriverside for more information.

• This submarket is averaging an annual rent growth of 6.8%, according to Austin Investor Interests’ (AII) 4Q 2015 Trend Report.

• Unit sizes range from 554+/- SF up to 1,017 +/- SF, offering those seeking more moderately priced living a wonderful alternative to downtown housing which averages more than $2,479 in rents, and greater than $2.52 PSF.

• Austin is ranked at the top of the list of U.S. cities most likely to prosper during the next 10 years (Forbes, America’s Next Boom Town, January 2016). Property Highlights

Forest Hills Apartments are perfectly nestled just minutes from downtown Austin, offices, nightlife, dining and shopping. This is an excellent location for bike commuters, easy access to city transit, and a stress-free commute to downtown, the State Capitol, and both North and South Austin. Nicely appointed one and two bedroom apartment

homes feature spacious floor plans for a comfortable lifestyle.

The average unit size of 724 +/- SF is larger than the typical properties of this vintage, and offer a wide array of floorplans. The roofs are a combination of flat and pitched with composition shingles. The property underwent major rehabilitation in 2006 / 2007 which included full exterior painting, new roofs, resurfacing of the tennis and basketball courts, and unit interior upgrades. There was another major rehab on 2014 / 2015 (approx. $3,500,000). Exterior construction is a combination of stucco and hardi board siding. Built in two phases (1973 and 1983), the property is situated on two tracts (3.91 + 3.17 acres) totaling a 7.08 +/- acre site (according to TCAD records). The community consists of thirty (30) two and three-story buildings with individual HVAC and 96 individual water heaters, with the remainder of units utilizing a central boiler

system and master-metered for electric.

Leasing efforts benefit from this excellent location, a variety of floor plans and convenient access to public and UT bus transportation. The residents enjoy Google fiber cable, a swimming pool with sundeck, black appliances, faux wood flooring and

two centrally located clothes-care facilities.

Area amenities include close proximity to the CBD, Austin Convention Center, Lady Bird Lake, University of Texas, UT’s new medical school, ACC Riverside Campus, St. Edward’s University, downtown entertainment districts and the Plaza Saltillo Station Redevelopment, plus easy access to the Bergstrom International Airport (ABIA) only seven miles away. Drive-by traffic and walkability are excellent due to frontage on both Willow Creek and Anken Drives - just north of Oltorf Boulevard.

Forest Hills | 210 Units

Property Features

Designer Black Appliance Packages Wood-Look Vinyl Flooring Spacious Floor Plans (554 +/- SF up to 1,017 +/- SF) Resurfaced Kitchen Countertops | Bar Areas Large Walk-In Closets for Extra Storage Two-Toned Interior Color Schemes Outdoor Balcony and Patios Spaces Vaulted Ceilings | Ceiling Fans | Fireplaces Vertical Blinds Open Green Spaces Throughout Site (Some Features May Vary In Units)

Community Overview

Multiple Courtyards with Picnic Tables | Bar-B-Que Areas Basketball, Volleyball and Tennis Courts Property Wired for Google Fiber Centrally Located, Sparkling Swimming Pool Large Finished-Out Space (1,672 +/- SF) for Fitness Center | Clubhouse Two Remodeled On-Site Clothes Care Centers

Located on Both UT and Capitol Metro Shuttle Bus Routes Black Wrought Iron Perimeter Fence Pet Friendly Community and Dog “Bark Park” Close Proximity to the East Riverside Corridor Online Rent Payments and Service Request Submissions COMMERCIAL

Forest Hills | 210 Units MUSKIN

FINANCIAL ANALYSIS

PROPERTY HIGHLIGHTS INVESTMENT OUTLINE UNITS 210 plus 1 (Short-Term Rental)* NOW PRICED $18,900,000 | Cap Rate: 6.55% BUILT 1973 & 1983 (Two Phases) TERMS Cash, New Loan or Loan Assumption BUILDINGS 30 Two & Three Story Garden Style TOTAL SQUARE FEET 152,342 +/- (TCAD) EXTERIOR Stucco and Hardi Board Siding LAND SIZE 3.91 (Ph. I) + 3.17 (Ph. II) = 7.08 +/- Acres (TCAD) METERING Master-metered (Phase I) Electric - Individual (Phase II) ROOF Flat (Ph. I) & Pitched Composition Shingle (Ph. II) HOT WATER Central Boilers (6 in Phase I) Individual Water Heaters (Phase II) PARKING SPACES 312 Spaces UNIT MIX

MONTHLY ANNUAL UNIT TOTAL MARKET MARKET MARKET RENT UNITS SF +/- SF +/- RENT RENT RENT SF +/-

20 1 Bed / 1 Bath - Ph. I 554 11,080 $925 $18,500 $222,000 $1.67 4 1 Bed / 1 Bath - Ph. I 555 2,220 $925 $3,700 $44,400 $1.67 24 1 Bed / 1 Bath - Ph. II 555 13,320 $825 $19,800 $237,600 $1.49 24 1 Bed / 1 Bath - Ph. I 570 13,680 $950 $22,800 $273,600 $1.67 24 1 Bed / 1 Bath - Ph. II 591 14,184 $860 $20,640 $247,680 $1.46 12 1 Bed / 1 Bath - Ph. I 653 7,836 $975 $11,700 $140,400 $1.49 12 1 Bed / 1 Bath - Den - Ph. 1 725 8,700 $995 $11,940 $143,280 $1.37 2 1 Bed / 1 Bath - TH - Ph. I 729 1,458 $1,000 $2,000 $24,000 $1.37 16 2 Bed / 1.5 Bath - Ph. I 846 13,536 $1,100 $17,600 $211,200 $1.30 48 2 Bed / 2 Bath - Ph. II 871 41,808 $950 $45,600 $547,200 $1.09 8 2 Bed / 2 Bath - Ph. I 991 7,928 $1,150 $9,200 $110,400 $1.16 16 2 Bed / 2 Bath - Ph. I 1,017 16,272 $1,200 $19,200 $230,400 $1.18

210 724+/- 152,022+/- $965 $202,680 $2,432,160 $1.33 *$100 for utilities is included in Rental Rates for master-metered units only (approx. 114 total) *One unit, furnished, is not shown on Rent Roll (Unit #100) and rents as an Short-Term Rental (STR)

Square footage is approximate. Muskin Commercial, LLC makes no representations or warranties regarding the square footages and has not independently verified this information.

NOTES TO PRO FORMA:

Replacement Reserves reflect Industry Averages 2016 Real Estate Taxes have been protested and are now at $12,700,000

PRO FORMA ANALYSIS

STABILIZED Trailing-12 INCOME UNDERWRITING From July 2016 YE 2015

SCHEDULED MARKET RENT $2,432,160 $2,004,133 $1,906,253 Less: Loss to Lease 3.00% ($72,965) — — Less: Vacancy 5.00% ($121,608) — — Less: Concessions 0.50% ($12,161) — — Less: Employee Units 0.25% ($6,080) ($3,725) ($8,870) Less: Prepaid Rents / Dues (Net) ($5,000) $3,609 ($2,157) NET RENTAL INCOME $2,214,346 $2,004,017 $1,895,226 Plus: Fees Income $45,000 $38,471 $43,366 Plus: Laundry Income $15,000 $12,159 $12,101 Plus: RUBS Income $45,000 $42,244 $43,513 Plus: Other Income $22,500 $19,706 $11,196 TOTAL OPERATING INCOME (EGI) $2,341,846 $2,116,597 $2,005,402

EXPENSES PER UNIT Administrative $95 $20,000 $17,2026 $36,213 Advertising & Promotion $95 $20,000 $20,927 $23,499 Payroll $1,050 $220,500 $211,559 $206,781 Repairs & Maintenance $450 $94,500 $94,833 $105,768 Management Fee (3.00%) $335 $70,255 $125,927 $118,582 Utilities $952 $200,000 $207,267 $217,137 Contracted Services $238 $50,000 $54,627 $51,074 Real Estate Taxes (2.296081%) $1,550 $325,469 $229,608 $205,615 Franchise Tax $38 $8,000 $7,186 $9,109 Insurance $200 $42,000 $35,351 $33,087

Replacement Reserve/Cap Ex $250 $52,500 $52,500 $52,500 Total Expenses $1,103,225 $1,056,991 $1,059,364 Per Unit $5,253 $5,033 $5,045 Per SF $7.26 $6.95 $6.97 Net Operating Income $1,238,621 $1,059,607 $946,038 Cap Rate: 6.55% NOTES TO PRO FORMA:

Replacement Reserves reflect Industry Averages 2016 Real Estate Taxes have been protested and are now at $12,700,000

Recently Announced

 #1 Enterprise Database in the World

 Serves 420,000 global clients, including 100 of the Fortune 100

The new Oracle Campus is  Currently three existing locations in Austin approximately 1 mile away  New location to be next-generation from Forest Hills Apartments technology campus that will include some nearby housing for employees

 Over 1,000 existing Oracle employees in the Austin area

 Plans to expand number of Austin employees by 50% over the next few years

Oracle’s New Campus  Metro Austin has strongest expansion in tech

The new Oracle campus will include a 560,000 +/- SF office complex sector employment and parking development. It is to be located south of Lady Bird Lake and east of I-35, near Lakeshore Blvd in Austin’s fastest growing  Austin has highest net-migration of adults submarkets, Southeast Riverside. The company has also purchased a with college degrees 295-unit apartment building adjacent to the campus which will be used to conveniently house their employees.  Largest population of 20-34 year olds in the nation at 27% Oracle is already considered a top employer in Austin and with plans to hire some 500 more employees, the new expansion is expected to at-  Ranks #1 in location desirability among job tract more top talent and contribute to the growth of the area. In addition seekers to several other nearby destinations and easy major road access points, the Forest Hills Apartments are about one mile away, and within walking and biking distance to Oracle’s newest location.  Austin will be the fastest growing large metro economy through 2021

www.muskincommercial.com Lady Bird Lake | Congress Ave. Bridge

University of Texas (Main Campus) Neighborhood Overview Sixth Street | Warehouse District

Retail Area Employers Restaurants & Entertainment

 HEB Plus Grocery  Motorola  Wooldridge Park  Walmart Super Center  Texas State Capitol  Emo’s  Walgreen’s Pharmacy  St. David’s Healthcare (Corp. Office)  Vince Young Steakhouse  Trader Joe’s  The University of Texas  Stubb’s BBQ  Whole Foods Market  Austin Chamber of Commerce  Frank Erwin Center  The Home Depot  Seton Family of Hospitals  Alamo Draft House  Office Depot  UT Medical Research Campus  Franklin’s Barbeque  CVS Pharmacy  Children’s Hospital Association  Paramount Theatre  American Apparel  The Driskill Hotel  The Scoot Inn  Kendra Scott  J.W. Marriott  Qui | Eddie V’s  AT&T  St. Edwards University  White Horse Bar  TOMS Austin  Four Seasons Hotel  ACL Moody Theater  Design Within Reach  Pediatric Cardiology of Austin  Antone’s  Allen’s Boots  ACC - Riverside Campus  Darrell K. Royal Football Stadium  Blu Dot  Neiman Marcus  Bob Bullock Museum  REI  Google  Continental Club  Anthropologie  Cirrus Logic  Texas Rowing Center  West Elm  Facebook  Blanton Museum of Fine Arts  Urban Outfitters  Home Away  Mexic-Arte Museum  Book People  Austin Convention Center  The Horseshoe Lounge  Patagonia  DropBox  East Austin Art Studios  Brooks Brothers  Texas Workforce Commission Outdoors

 Lady Bird Lake | Hike & Bike Trails Forest Hills | 2201 Willow Creek Drive  Zilker Park  Blunn Creek Nature Preserve  Roy G. Guerrero Disc Golf Course Easy Access Additional Destinations  Norwood Tract Dog Park  Waller Creek & Beach  Interstate Highway 35  3 mi. to CBD  Congress Avenue “Bat” Bridge  Highway 71  3.8 mi. to U.T. (Main Campus)  E. Riverside Drive  2.4 mi. to ACC - Riverside Campus  E. Oltorf Street  7 mi. to Austin-Bergstrom AISD Schools  S. Pleasant Valley Road International Airport (ABIA)  Linder Elementary School  S. Congress Avenue  2.6 mi. to Austin Convention Center  Fulmore Middle School  South Lamar Boulevard  3 mi. to 6th & 2nd Streets | Warehouse  Travis High School  Loop One (MoPac Expwy) Districts

www.muskincommercial.com

Area Map

Forest Hills | 210 Units | 2201 Willowwww.muskincommercial.com Creek Drive

Austin Attributes One of the Best Cities for Millennials

Percent of Population (Age 25-34): 21.2% Millennial Newcomers: 3.12% Unemployment Rate: 2.6%

(Forbes, 2015) Photo courtesy of Forbes Magazine Texas to see Explosive Growth: Population to Double by 2050

(Austin Business Journal, 2015)

Photo courtesy of utexas.edu The Austin metropolitan area added 43,400 net 11th Largest new jobs, or 4.7%, in the Population 12 months ending in January 2016 Among U.S. (U.S. bureau of Labor Statistics, 2016) Cities Photo courtesy of Trip Advisor

(U.S. Census, 2015) The East Riverside Corridor, one mile away from the Forest Hills Apartments, is a rapidly expanding area rife with new upscale apartments, restaurants, entertainment venues, retail stores and office spaces already open, with more on the way. Photo courtesy of 6thstreet.com

Muskin Commercial, LLC has prepared this brochure to provide summary information to prospective purchasers and makes no warranty or representation about the content. While this information has been obtained from sources believed to be reliable; Muskin Commercial, LLC has not conducted any investigation regarding these matters and prospective purchasers should independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are examples only and do not necessarily represent the current or future performance of the property. This brochure does not constitute an offer of sale, but is merely an invitation to bid.

MULTIFAMILY INVESTMENTS SALES

www.muskincommercial.com

Ellen Muskin | [email protected] Daniel Elam | [email protected] (512) 343-2700 Ph