49M SF 150,000+ 9 1.2M SF MINUTE MAID PARK TOYOTA CENTER CLASS A Employees FORTUNE GEORGE R. BROWN HOUSTON ASTROS HOUSTON ROCKETS OFFICE 500 CONVENTION CENTER COMPANIES cbd 2,000 82,000+ 21M SF OF 5M SF 1,000+ 14TH LARGEST COMPANIES EMPLOYEES OFFICE SPACE OF RETAIL STORES BUSINESS DISTRICT IN NATION 7 uptown/galleria mi 610 1 mi chimney rock rd richmond ave anderson park fullyfountain renovated view dr located in Supply Outlook Excellent asset with uptown/galleria, Produces Infill Location minimal deferred one of houston’s Favorable Providing maintenance most desirable Multifamily Immediate Access submarkets Fundamentals to 350,000 Jobs 44 units 0.99 ACRES 5701 schumacher lane | Houston, TX 77057 2 PRICE # OF UNITS YEAR BUILT TBD 44 1965 TOTAL AVERAGE OCCUPANCY ACREAGE UNIT SIZE (LEASED) 0.99 703 SF 93% NET RENTABLE AVG MARKET RENT AVG MARKET RENT AREA PER MONTH PER SF 30,948 SF $949 $1.35 anderson park 3 investment fully renovated asset highlights Minimal deferred maintenance Faux wood flooring Granite countertops asset in rapidly improving submarket • T12 Rent Growth in Galleria/Uptown uptown | galleria Submarket: 5% Galleria/Uptown Submarket Performance • T12 Occupancy Growth: $1.50 92% 5.0% $1.48 90% • Class B Rent have $1.46 grown nearly 6.0% after $1.44 bottoming out at $1.13 in 88% June 2017 $1.42 $1.40 86% $1.38 84% $1.36 $1.34 82% $1.32 $1.30 80% Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Occ% Rate 2018 Proj rent growth 4.5% 2019 Proj rent growth 4.3% 4 investment supply outlook produces highlights Favorable Multifamily Fundamentals 45 69 45 69 supply 2014-2016 10 current supply 10 MEMORIAL MEMORIAL PARK PARK 1,466 acres CENTRAL 1,466 acres CENTRAL 4M annual visitors BUSINESS 4M annual visitors BUSINESS DISTRICT DISTRICT UPTOWN/ UPTOWN/ GALLERIA GALLERIA 45 45 45 45 69 69 610 610 HERMANN PARK/ HERMANN PARK/ HOUSTON ZOO HOUSTON ZOO • Over 2,500 units delivered between 2014-2016 • One 69Property under construction in submarket between 2018-2020:69 Hanover Blvd Place • Using historical T24 absoroption, the Galleria submarketTEXAS is MEDICAL projected to stabilize by 4Q of 2018 TEXAS MEDICAL CENTER CENTER HORN HORN ELEMENTARY ELEMENTARY Excellent Infill LocationNRG PARK Providing NRG PARK 610 • Majestic Apartments610 Immediate Access to 350,000 Jobs provides immediate commutes to 5 of Houston’s top How long is employment hubs the drive? • Opportunity for a covered land play TO # of Miles Galleria < 1 - 5 min Greenway Plaza < 2 - 10 min Texas Medical Center < 5 - 12 mn 610 Westchase District < 5 - 10 min Memorial City < 5 - 14 min 5 45 610 MILES 10 ENERGY CORRIDOR MEMORIAL CITY 48K employees 610 CENTRAL BUSINESS DISTRICT 94K employees 158K employees UPTOWN | GALLERIA 82K employees GREENWAY PLAZA WESTCHASE DISTRICT 25K employees 93K employees 45 TEXAS MEDICAL CENTER 106K employees 5 » 14th largest business uptown/galleria district in the US business district » 82,000 employees » Five million square feet of retail space and more than 1,000 stores » The Galleria hosts 26 million visitors annually, making it the number one shopping and tourist attraction in Houston Galleria/Uptown District Greenway Plaza 2,000 82,000+ 28M SF OF 106, 000 5, 000 50,000 COMPANIES EMPLOYEES CLASS A OFFICE LARGEST EMPLOYEES DOCTORS STUDENTS MEDICAL COMPLEX #14 IN THE WORLD 10 BUILDING 25,000+ 4.25M SF COMPLEX EMPLOYEES OF CLASS A OFFICE 5M SF 1,000+ 14TH LARGEST OF RETAIL STORES BUSINESS DISTRICT MASTER-PLANNED MIXED-USE 52-ACRE SITE IN NATION PREMIER FRONTAGE ALONG U.S. HIGHWAY 59 21 15,000 45.8M SF OF 5,700 7.2M+ VISITORS HOSPITALS NURSES COMMERCIAL RESEARCHERS PER YEAR SPACE $1 BILLION IN $5 MILLION RENOVATIONS UNDERWAY IN RENOVATIONS 1.3 MILLION SF UNDER RECENTLY COMPLETED CONSTRUCTION 8TH LARGEST $7 BILLION 1,345 ACRES IN EXPANSIONS BUSINESS DISTRICT IN NATION 6 Major employers 19 8 14 13 9 21 20 18 15 16 12 11 4 10 17 7 23 6 1 22 5 2 UPTOWN/GALLERIA MAJOR EMPLOYERS 1] Galleria Office Towers 2] Williams Tower Williams Companies, Rowan Companies, Quanta Services 3 15] Marathon Oil 3] Bechtel Oil, Gas & Chemicals 16] 5151 San Felipe Goodman Manufacturing Company, 4] Amegy Bank HQ Columbia Pipeline Group 24 5] Silicus Technologies, LLC 17] Post Oak Central Stewart Title Co., Apache Corporation, Engie North America 6] AECOM 18] Schlumberger 7] BBVA Compass Plaza 19] Riverway Office Park Northwestern Mutual, 8] Four Oaks Plaza Morgan Stanley, SureTec, Riverway Title Company, Aly Energy Services Main Street Capital 20] San Felipe Plaza Chase, Amerifirst 9] 1400 Post Oak Ln Select Energy, JLL 21] Burns & McDonnel 10] Transwestern 22] 5718 Westheimer Capital One, DCP Midstream 11] 1800 West Loop South Blue Cross Blue Shield of Texas, Pierpont Communications, Anheuser-Busch 23] Enbridge 12] BLVD Place Frost Bank, Cantor Fitzgerald, ARA Newmark Greenway Plaza Occidental Petroleum, Transocean, 24] Chicago Title, Camden, Solvay Chemicals, Invesco, 13] Landry’s Inc Direct Energy 7 GREENWAY PLAZA Galleria/Uptown District Greenway Plaza » Ten-building complex totaling over 4.25 million square feet of Class A office space » 25,000 employees » Master-planned mixed-use 52-acre site with premier frontage along U.S. Highway 59 » $5 million in renovations recently completed 2,000 82,000+ 28M SF OF 106, 000 5, 000 50,000 COMPANIES EMPLOYEES CLASS A OFFICE LARGEST EMPLOYEES DOCTORS STUDENTS MEDICAL COMPLEX #14 IN THE WORLD 10 BUILDING 25,000+ 4.25M SF COMPLEX EMPLOYEES OF CLASS A OFFICE 5M SF 1,000+ 14TH LARGEST OF RETAIL STORES BUSINESS DISTRICT MASTER-PLANNED MIXED-USE 52-ACRE SITE IN NATION PREMIER FRONTAGE ALONG U.S. HIGHWAY 59 21 15,000 45.8M SF OF 5,700 7.2M+ VISITORS HOSPITALS NURSES COMMERCIAL RESEARCHERS PER YEAR SPACE $1 BILLION IN $5 MILLION RENOVATIONS UNDERWAY IN RENOVATIONS 1.3 MILLION SF UNDER RECENTLY COMPLETED CONSTRUCTION 8TH LARGEST $7 BILLION 1,345 ACRES IN EXPANSIONS BUSINESS DISTRICT IN NATION 8 energy corridor westchase district 5.5 mi 5 3 mi 300 94,000 22M SF OF 29M SF 3RD LARGEST COMPANIES EMPLOEES OFFICE SPACE OF RETAIL EMPLOMENT CENTER IN HOUSTON 1,500 93,000 18M SF OF 21M SF COMPANIES EMPLOEES OFFICE SPACE OF RETAIL westheimer rd richmond ave Houston Camera Exchange fountain view dr Kawai Piano Gallery Sam’s Boat Uptown Lounge anderson park chimney rock rd 9 energy corridor westchase district 5.5 school MECHANICAL mi OVERVIEW SYSTEMS 5 3 mi 300 94,000 22M SF OF 29M SF 3RD LARGEST COMPANIES EMPLOEES OFFICE SPACE OF RETAIL EMPLOMENT CENTER SCHOOL DISTRICT ELECTRICITY IN HOUSTON Houston Independent School District Individually metered 1,500 93,000 18M SF OF 21M SF ELEMENTARY SCHOOL WATER/SEWER COMPANIES EMPLOEES OFFICE SPACE OF RETAIL St. George Place Master-metered, Owner pays westheimer rd MIDDLE SCHOOL HOT WATER richmond ave Tanglewood 2 boilers HIGH SCHOOL HVAC Wisdom Individual climate controlled units Houston Camera Exchange CONSTRUCTION PARKING fountain view dr Kawai Piano Gallery Sam’s Boat DETAILS INFORMATION Uptown Lounge anderson STYLE OPEN, UNRESERVED SPACES park Garden-style 53 NUMBER OF BUILDINGS PARKING SPACES PER UNIT 4 two-story buildings 1.2 FOUNDATION Concrete post-tension slab chimney rock rd EXTERIOR WALLS Stucco and stacked stone? ROOF TYPE Flat FLOOR COVERING Faux wood and ceramic tile PAVING Concrete and asphalt paved with curbs WIRING Aluminum, CO/ALR PIPING PVC 10 pro forma PRO FORMA FINANCIAL ANALYSIS INCOME % of GSR Totals Per Unit Per SF Gross Scheduled Rent 100.00% $511,020 $11,614 $16.51 Less: (Gain)/Loss-to-Lease 3.00% 15,331 348 0.50 Gross Potential Income 97.00% $495,689 $11,266 $16.02 Less: Vacancy 5.00% 25,551 581 0.83 Total Rental Income 92.00% $470,138 $10,685 $15.19 % of GSR Totals Per Unit Per SF Plus: Other 1.08% 5,517 125 0.18 Total Other Income 1.08% 5,517 125 0.18 Effective Gross Income 93.08% $475,655 $10,810 $15.37 EXPENSES % of EGI Totals Per Unit Per SF Repairs and Maintenance 4.63% 22,000 500 0.71 Payroll 10.18% 48,400 1,100 1.56 Administrative 0.23% 1,100 25 0.04 Marketing 0.23% 1,100 25 0.04 Utilities 3.68% 17,528 398 0.57 Total Variable Expenses 18.95% $90,128 $2,048 $2.91 Taxes 16.17% 76,932 1,748 2.49 Insurance 3.70% 17,600 400 0.57 Management Fee 4.00% 19,026 432 0.61 Total Operating Expenses 42.82% $203,686 $4,629 $6.58 Capital Reserves 3.24% 15,400 350 0.50 Total Expenses 46.06% $219,086 $4,979 $7.08 Net Operating Income $256,569 $5,831 $8.29 11 pro forma assumptions RENTAL INCOME Gross Scheduled Rent – based on current market rents in the 7/5/2018 rent roll and grown 2% Loss-to-Lease – assumed at 3.00% of GSR Vacancy – assumed at 5.00% of GSR which is consistent with June’18 T3 actuals OTHER INCOME Other Income – based on June’18 T3 actuals and grown 3.00% EXPENSES Repairs and Maintenance – assumed $500/unit which is based on June’18 T3 actuals and adjusted for market norms Payroll – assumed $1,100/unit which is based on June’18 T3 actuals and adjusted for market norms Administrative – assumed $25/unit which is consistent with June’18 T3 actuals Marketing – assumed $25/unit which is consistent with June’18 T3 actuals Utilities – based on June’18 T3 actuals and grown 3%; tenants are responsible for their own electric but property covers water, sewer and gas Property Tax – the Property is in Harris County and has tax ID # 0741650040072; 2018 appraised value was $2,768,344; pro forma taxes are based on Year 1 appraisal growth of 10% over current appraised value and multiplied by the 2018 millage rate of 2.52635% Insurance – assumed $400/unit; insurance expenses vary depending on the coverage and deductible selected by the investor and whether the Property is included on a single-asset or blanket policy Management Fee – assumed 4.00% of EGI based on the size of the property and market norms 12 • Beautiful courtyard • Ceiling fans • Gated parking • Walk-in closets • Picnic area with barbecue grills • Frost-free refrigerators, dishwashers amenities & • Onsite laundry facility and garbage disposals • Intercom access for each apartment features • Faux wood flooring • Granite counter tops 13 14 rent comparables EFF.