2010 Supplemental - CWS Capital Partners LLC

Transcription

CONTE NTS
Region 1. Austin .................................. 1
Region 2. Dallas/Ft. Worth ................... 10
Region 3. San Antonio ......................... 28
Region 4. Houston ............................... 35
Region 5. Charlotte .............................. 41
Region 6. Atlanta ................................. 46
Region 7. Raleigh ................................ 53
Region 8. Denver ................................. 56
Region 9. Canada ................................ 61
R
AUSTIN
E
G
F E A T U R E D
I
O
N
P R O P E R T I E S
The Marquis at Ladera Vista
The Marquis at Caprock Canyon*
The Marquis at Barton Creek
Windsor at Barton Creek*
Northwest Hills Apartments
Riverside Square *
Riverside Place *
The Block on 28th*
The Block on Leon*
The Block on Pearl*
The Block on 23rd*
The Block on 25th*
The Block on Rio Grande *
The Marquis at Great Hills*
The Marquis at Tree Tops
The Marquis on Volente
* Due to closely held ownership or less than 12 months of
activity since date of purchase, financial pages for certain
assets have not been included in the Supplemental Report.
Contact CWS Investor Relations for more information.
CWS C
TA
API
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.PG.
1
2 010 A N N
UA L
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MACRO OVE RVIEW
S O U R C E S
Austin Investor Interests, Austin Business Journal, Business Week
• The Marquis on Volente
Four Points
• The Marquis at Ladera Vista
• The Marquis at Great Hills
Coxville
183
2222
Greenshores
360
2244
71
2222
290
290
Austin
Hyde
Park
275
• The Block on Rio Grande
• The Block on 28th
The Block on Leon • • The Block on 25th
The Block on 23rd •
University of
The Block on Pearl •
Texas–Austin
• Riverside Square
• Riverside Place
• Windsor at Barton Creek
35
Central
Business District
1
2010 was a recovery year for the Austin market. The Austin-San Marcos, TX MSA experienced a 2.2% increase in employment in
2010, equal to 17,000 new jobs. During 2010
new apartment deliveries diminished significantly with only 3,027 new units delivered
compared to approximately 7,500 new units
the previous year. Occupancy numbers also
jumped to 93.5% as apartment demand increased and a limited new supply came onto
the market. In congruence with increased
demand and limited supply, Austin absorbed
9,340 units in 2010, a 15-year high. Rents in
2010 also moved upward, increasing 2.4%.
It is anticipated that Austin will experience
183
71
similar positive results in 2011 as the market
is expected to deliver only 638 units while
MPF projects demand should reach 4,500
units. As a result, MPF projects occupancy
to reach and exceed 95% with effective rent
growth projected at 6.8%. Austin ranks as
the second strongest economy in the nation
according to Business Week. Austin’s high
quality of living, highly-educated workforce
and availability of office space should help
Austin to continue to grow faster than the
national average. It is anticipated that 2011
will be a positive year in Austin, after which
the supply and demand fundamentals point
to continued growth.
.PG.
CWS CA PITA L PA RTNER S LLC
Dessau
• The Marquis at Caprock Canyon
• The Marquis at Tree Tops
35
• Northwest Hills Apartments
Travis
• The Marquis at Barton Creek
71
734
2
2010 SUPPLEMENTA L REPORT
AUSTIN REGION
MPF Data
.PG.
3
NORTHWE ST AUSTIN
Submarket Discussion
The northwest Austin submarket continues to be
one of the strongest performing submarkets thanks
to its abundant Class A office space and the area’s
attractive quality of life. The communities of The
Marquis at Ladera Vista, The Marquis at Caprock
Canyon, Northwest Hills, and The Marquis at Tree
Tops reside in the northwest region. Well known employers such as IBM, J.J. Pickle Research Campus,
Seton Northwest Hospital, 3M, SBC Communications, Apple, National Instruments, and Advanced
Micro Devices are all located within the region. The
area has a highly skilled workforce and includes the
“Golden Triangle” highway system. The area’s excellent schools, entertainment, and some of the highest end retail and restaurants in Austin add to a high
quality of life. The Arboretum includes over one million square feet of retail and 600,000 square feet of
office space in addition to numerous hotels. Some of
the retail includes Saks Fifth Avenue, Whole Foods,
Pottery Barn, Williams Sonoma, Barnes & Noble,
Pier One Imports, and numerous national, regional,
and local retailers. The Domain is a new development
catering to Austin’s affluent population with high end
retailers including Barney’s New York, Tiffany & Co.,
and the city’s first Neiman Marcus. The development
includes popular restaurants and social settings. The
additional development phases call for three million
square feet of office space, three upscale hotels, and
3,400 residences over the next ten years. It is projected that 15,000 employees will eventually work in
the retail or office space at the Domain.
The northwest Austin submarket added only 431
units in 2010. The area’s occupancy rate is 95.6%,
well above the overall market occupancy of 93.5%.
The submarket also experienced an average rent increase of 1.9%, slightly under the 2.4% overall market
average. The northwest submarket is one of Austin’s
premier locations to live and work and is expected
to follow-up a strong performance in 2010 with an
equally strong 2011.
.PG.
4
THE MARQUIS AT LADE RA VISTA
THE MARQUIS AT LADERA VISTA
Earnings Overview
Earnings Overview
2010 Statement of Income
& 2011 Earnings Projection
Earnings
Earnings
Year 2010
Year 2011
Net Rental Income
Other Income
Interest Income
Total Revenues
$
2,240,137
241,222
414
$2,481,773
Payroll & Benefits
Marketing & Advertising
Turnover Costs
Repairs & Maintenance
Professional Services
General & Administrative
Utilities
Insurance
Property Taxes
Homeowners Association Dues
Management Expenses
Total Operating Expenses
Net Operating Income
$
(262,476) $
(37,770)
(47,806)
(35,038)
(48,949)
(56,327)
(179,455)
(39,830)
(398,655)
0
(78,353)
(1,184,658) $
1,297,114 $
(260,659)
(42,104)
(41,210)
(36,593)
(48,906)
(59,008)
(174,239)
(33,996)
(454,637)
0
(79,937)
(1,231,289)
1,303,291
Debt Service (Principal & Interest)
Lender Group Interest
Capital Expenditures
Non-Operating Expenses
Cash from Lender Group
Cash From / (To) Lender
Reserves (Net)
Cash from/(to) Reserves
Distributable Cash Flow
Limited Partner Share of
$
(914,541) $
0
(113,329)
(61,581)
0
(627,270)
0
(236,938)
(69,866)
0
$
(27,840)
(29,823)
150,000 $
0
(14,217)
355,000
$
150,000
355,000
$
$
$
2,295,888
238,692
0
$2,534,580
$
Allocations by Tenant-In-Common
Stonegate Lewisville Assoc
CWS Jollyville Assoc, Ltd
Partnership Taxable Income / (Loss)
Mortgage Interest
Estimated Depreciation
Amortization
Non-Recurring Repairs
Projected Taxable Income / (Loss)
$
$
Property Highlights
Earnings
Earnings
Year 2010
Year 2011
1,297,114 $
(860,437)
0
(552,237)
(58,533)
(0)
(61,581)
(235,673) $
1,303,291
(567,203)
0
(556,545)
(10,290)
0
(69,866)
99,387
2010
Limited Partner Return on
Outstanding Investment (ROI)
Average Physical Occupancy
Average Net Rent per Occupied Unit
$
Loan Information
Loan Balance
Lender
as of 12/2010
Freddie Mac
Freddie Mac
$ 11,560,000
$ 3,375,496
2011
4.23%
95.22%
876 $
10.01%
94.60%
904
Interest Rate
Maturity Date
5.85%
5.07%
April, 2011
April, 2011
2010
2011
2010 Actual
2011 Projected
Projected
Projected
Limited
Limited
Ownership
Taxable
Taxable
Partner
Partner
Percentage
Income
Income
Distributions
Distributions
101,724 $
(2,336)
104,793
45,207
$
248,010
106,990
150,000
$
355,000
69.86200%
30.13800%
$
(132,356) $
(103,317)
$
(235,673) $
99,387
$
* Note: Depreciation is not included as depreciable basis is not known
Year 2010 Actual Cash Outflows
Distributions
6%
Operating Expenses
48%
Year 2011 Projected Cash Outflows
Debt Service
37%
Debt Service
25%
Distributions
14%
Capital
Expenditures
5%
Cash to Reserves
2%
Operating Expenses
48%
Non-Operating
2%
Cash to Reserves
1%
Non-Operating
3%
.PG.
Capital
Expenditures
9%
5
THE MARQUIS AT TRE E TOPS
THE MARQUIS AT TREETOPS
Earnings Overview
Earnings Overview
Earnings
Earnings
Year 2010
Year 2011
Net Rental Income
Other Income
Interest Income
Total Revenues
$
3,131,068
248,583
1,544
$3,381,195
Payroll & Benefits
Turnover Costs
Utilities
Insurance
Property Taxes
Management Expenses
$
(292,338) $
(39,872)
(33,976)
(40,459)
(62,152)
(58,684)
(179,714)
(54,693)
(537,651)
0
(105,336)
(1,404,876) $
1,976,320 $
(303,941)
(40,715)
(30,387)
(32,513)
(64,165)
(65,600)
(180,229)
(53,376)
(649,749)
0
(107,023)
(1,527,698)
1,904,947
Cash from / (to) Lender
Reserves (Net)
$
(1,678,899) $
0
(151,721)
(113,856)
0
(1,678,899)
0
(385,457)
(131,681)
0
$
$
$
$
$
3,186,187
246,459
0
$3,432,646
113,453
(145,297)
0 $
0
192,000
99,089
0
$
$
Property Highlights
Earnings
Year 2011
1,976,320 $
(1,678,899)
0
(937,039)
(60,270)
0
(113,856)
(813,743) $
1,904,947
(1,678,899)
0
(943,064)
(60,270)
(0)
(131,681)
(908,966)
2010
$
Loan Information
Loan Balance
Lender
as of 12/2010
Freddie Mac
$ 29,000,000
2011
0.00%
95.12%
1,146 $
Interest Rate
0.00%
94.22%
1,179
Maturity Date
5.71% December, 2014
2010
2011
2010 Actual
2011 Projected
Projected
Projected
Limited
Limited
Ownership
Taxable
Taxable
Partner
Partner
Percentage
Income
Income
Distributions
Distributions
$
0
CWS Treetops-Bartons TVL, LP
CWS Treetops-Sunset TVL, LP
CWS Treetops-Lodge TVL, LP
CWS Treetops-Lamplighter TVL, LP
CWS Treetops-Marietta TVL, LP
CWS Treetops-Pooles TVL, LP
Autrey Tree Tops LLC *
Private Trust
Private Trust *
Mortgage Interest
Amortization
Earnings
Year 2010
14.68873%
8.72078%
15.29300%
14.79562%
20.09386%
10.17433%
10.61603%
2.21167%
3.40598%
$
CWS Treetops - Lamplighter TVL, LP ***
CWS Treetops, LP ***
Tree Tops LG One, LP ***
(111,559) $
(91,576)
(151,169)
(146,793)
(225,644)
(87,461)
13,089
(16,829)
4,199
(813,743)
(5,779)
(118,720)
(109,237)
(125,691) $
(99,966)
(165,882)
(161,027)
(244,976)
(97,250)
3,620
(18,957)
1,161
(908,966)
(6,274)
(130,395)
(119,971)
0
0
0
0
0
0
0
0
0
0
0
0
0
$
*** Includes distributions from limited partner interest in all above limited partnerships
Debt Service
50%
Capital
Expenditures
4%
Debt Service
45%
Capital
Expenditures
10%
Cash to Reserves
1%
Operating Expenses
42%
Operating Expenses
41%
Non-Operating
3%
.PG.
6
Non-Operating
4%
0
0
0
0
0
0
0
0
0
0
0
0
0
NORTHWE ST HILLS APARTME NTS
NORTHWEST HILLS APARTMENTS
Earnings Overview
Earnings Overview
Earnings
Earnings
Year 2010
Year 2011
Net Rental Income
Other Income
Interest Income
Total Revenues
$
2,573,094
291,665
819
$2,865,578
Payroll & Benefits
Turnover Costs
Utilities
Insurance
Property Taxes
Management Expenses
$
(331,023) $
(45,656)
(36,258)
(57,776)
(51,040)
(69,720)
(217,077)
(47,691)
(405,234)
0
(90,467)
(1,351,943) $
1,513,635 $
(334,331)
(47,003)
(43,981)
(72,000)
(49,732)
(74,664)
(203,394)
(40,044)
(466,853)
0
(90,850)
(1,422,852)
1,455,476
Loan Refinance Fees
Reserves (Net)
$
(1,017,722) $
0
(301,816)
(91,063)
0
(820,030)
0
(161,436)
(89,967)
(340,000)
$
$
$
2,596,359
281,969
0
$2,878,327
$
49,299
(2,334)
150,000 $
0
205,957
250,000
$
150,000
250,000
$
CWS Northwest Hills, LP
CWS VOT/SC NW Hills, LP
Private Trust *
Private Trust *
Private Trust *
Private Trust *
Private Trust *
Mortgage Interest
Amortization
$
$
Property Highlights
Earnings
Earnings
Year 2010
Year 2011
1,513,635 $
(718,550)
0
(315,936)
(58,080)
0
(91,063)
330,006 $
1,455,476
(491,217)
0
(317,330)
(9,427)
0
(89,967)
547,535
2010
$
Loan Information
Loan Balance
Lender
as of 12/2010
Freddie Mac
Freddie Mac
$ 14,274,279
$ 1,720,469
2011
3.09%
96.55%
708 $
5.15%
94.75%
729
Interest Rate
Maturity Date
LIBOR + 2.5%
LIBOR + 2.5%
October, 2011
October, 2011
2010
2011
2010 Actual
2011 Projected
Projected
Projected
Limited
Limited
Ownership
Taxable
Taxable
Partner
Partner
Percentage
Income
Income
Distributions
Distributions
41.94236%
5.55954%
6.52530%
5.90050%
21.69766%
7.49810%
10.87653%
$
$
(23,510) $
14,408
42,150
38,114
140,154
48,433
70,256
330,006 $
67,081
26,416
56,435
51,031
187,655
64,848
94,067
547,535
$
$
62,914
8,339
9,788
8,851
32,546
11,247
16,315
150,000
$
$
Distributions
5%
Operating Expenses
47%
Debt Service
35%
Distributions
9%
Capital
Expenditures
10%
Operating Expenses
52%
Non-Operating
3%
Capital
Expenditures
6%
Non-Operating
3%
.PG.
Debt Service
30%
7
104,856
13,899
16,313
14,751
54,244
18,745
27,191
250,000
SOUTHWE ST AUSTIN
The southwest submarket is one of the liveliest submarkets due to its proximity to downtown and its hill
country setting. The communities of The Marquis at
Barton Creek, Riverside Square and Riverside Place
are located within this area. Well known employers
such as Motorola, the University of Texas at Austin,
St. Edward’s University, Sematech, Applied Materials, AMD, and Barton Creek Square Mall are located in the southwest. The region’s quality of life is
highlighted by the easy access to the downtown cultural centers, Zilker Park, the Town Lake hike and
bike trail, shopping, restaurants, and employment.
Barton Creek Square Mall includes 180 retailers and
is anchored by Nordstrom.
The southwest Austin submarket added 276 units
in 2009 with an additional 436 units expected in
2010. The area’s occupancy rate is 92.9%, while the
overall market occupancy is 88.7%. While the occupancy is much stronger than the overall market,
increased competition city wide will hold back rents
until the overall market reaches a higher occupancy.
The area is one of Austin’s premier locations to live
and work so the long-term outlook for the submarket
is very favorable.
.PG.
8
THE MARQUIS AT BARTON CRE E K
THE MARQUIS AT BARTON CREEK
Earnings Overview
Earnings Overview
Earnings
Earnings
Year 2010
Year 2011
Net Rental Income
Other Income
Interest Income
Total Revenues
$
3,068,947
261,514
179
$3,330,640
Payroll & Benefits
Turnover Costs
Utilities
Insurance
Property Taxes
Management Expenses
$
(289,999) $
(71,249)
(45,863)
(50,068)
(72,344)
(58,022)
(187,610)
(51,397)
(598,627)
(38,223)
(103,819)
(1,567,219) $
1,763,421 $
(298,387)
(63,478)
(42,725)
(48,303)
(40,399)
(66,819)
(192,274)
(53,868)
(689,233)
(38,412)
(105,989)
(1,639,887)
1,760,684
Unpaid Lender Group Interest
Lender Group Advances
Cash From / (to) Lender Reserves (Net)
$
(1,356,438) $
(248,926)
(125,744)
(91,849)
59,021
381,741
(904,075)
522,849
0 $
(1,191,374)
(277,665)
(417,204)
(108,379)
58,457
0
0
175,481
0
$
$
$
$
0
$
3,157,088
243,483
0
$3,400,571
$
Mortgage Interest
Amortization
$
$
Property Highlights
Earnings
Earnings
Year 2010
Year 2011
1,763,421 $
(1,356,438)
(248,926)
(702,850)
(104,268)
(0)
(91,849)
(740,910) $
1,760,684
(1,191,374)
(277,665)
(709,098)
(79,406)
0
(108,379)
(605,239)
2010
$
Loan Information
Loan Balance
Lender
as of 12/2010
Freddie Mac
Barton Creek Lender Group
$ 20,400,000
$ 2,882,785
2011
0.00%
95.69%
1,073 $
Interest Rate
0.00%
94.27%
1,118
Maturity Date
LIBOR+3.86% September, 2017
9.50%
August, 2017
0
Creekside-Estancia, LP
Shadowood-Estancia, LP
Suburban Woods-Estancia, LP
Private Trust
Private Trust *
Private Trust *
Private Trust *
2010
2011
2010 Actual
2011 Projected
Projected
Projected
Limited
Limited
Ownership
Taxable
Taxable
Partner
Partner
Percentage
Income
Income
Distributions
Distributions
42.25219%
26.44230%
10.43338%
3.24536%
6.85871%
9.32251%
1.44555%
$
$
(418,514) $
(202,384)
(90,340)
(22,963)
(2,610)
(3,548)
(550)
(740,910) $
(361,755) $
(166,863)
(76,324)
(18,604)
7,123
9,682
1,501
(605,239) $
0
0
0
0
0
0
0
0
$
$
Debt Service
34%
Capital
Expenditures
4%
Debt Service
30%
Capital
Expenditures
14%
Operating Expenses
52%
Non-Operating
4%
Cash to Reserves
12%
Operating Expenses
47%
Non-Operating
3%
.PG.
9
0
0
0
0
0
0
0
0
DALLAS/
FT. WORTH
R
E
G
F E A T U R E D
I
O
N
P R O P E R T I E S
Brooks on Preston*
The Marquis at Waterview
The Marquis at Stonegate
The Marquis at Willow Lake
The Marquis at Turtle Creek
The Marquis at Bellaire Ranch
The Marquis on McKinney
The Marquis at West Village
The Marquis at Park Central
The Marquis on Gaston*
The Marquis at Silver Oaks*
The Park on Spring Creek*
Marquis at Lantana
The Marquis at Riverchase *
The Marquis at Stonebriar *
The Marquis on Cedar Springs
The Park at Fox Trails*
The Marquis at Texas Street
FINANCIAL
GUIDANCE
FOR A
TURBULENT
ECONOMY
SMART
INVESTING
FOR
TODAY’S
LANDSCAPE
CWS C
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.PG.
10
2 010 A N N
UA L
RE P
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MACRO OVE RVIEW
S O U R C E S
M/PF Research, Bureau of Labor Statistics
• The Park at Fox Trails
• The Park on Spring Creek
• The Marquis75at Stonebriar
• Brooks on Preston
35E
• The Marquis at Silver Oaks
• Marquis at Lantana
114
287
• The Marquis at Riverchase
Carrollton
Dallas
Fort Worth
International
Airport
35W
• The Marquis
at Waterview
•
77
635
The Marquis
at Park Central
Garland
Love Field
• The Marquis on Cedar Springs
Airport
Mesquite
183
820
820
12
360
Fort
Worth
35E
Dallas
• The Marquis at West Village
• The Marquis at Turtle Creek
• The Marquis on McKinney
• The Marquis at Texas Street
• The Marquis on Gaston
30
• The Marquis at Stonegate
• The Marquis at Bellaire Ranch
• The Marquis at Willow Lake
408
20
The Dallas-Fort Worth, TX MSA (“D/
FW”) apartment market recorded nearhistoric levels of apartment demand in 2010,
but the recovery remains in favor of higherend properties. Annual absorption reached
the highest level seen there since 2000 despite the economy posting decent, but not
spectacular, gains. According to preliminary
Bureau of Labor Statistics (BLS) data, D/
FW gained 40,600 (1.4%) jobs through the
period ending November 2010. Among the
core 64 metros in the U.S., only Washington,
D.C. added more jobs in the past year. The
metro occupancy surged 2.3 points annually averaging 91.3%. D/FW added another
45
1,498 units in the 4th quarter, bringing the
calendar year supply total to 10,753. The 4th
quarter completion tally was D/FW’s smallest since early 2002. Leading economists
predict the July-September 2010 timeframe
was probably the last quarter of 2,000+ new
units for quite some time.
After four straight quarters of price cuts,
rents have climbed on a quarterly basis in the
past three quarters. In 2010 as a whole, effective pricing improved 1%, marking the first
time in seven quarters Dallas/Fort Worth
recorded year-over-year price growth. On
an annual basis, same-store prices climbed
about 1% on both sides of the Metroplex.
.PG.
20
11
DALLAS/FT. WORTH REGION
MPF Data
.PG.
12
UPTOWN DALLAS
Uptown Dallas has emerged as the strongest residential
rental niche market in the D/FW metroplex. Uptown
Dallas, part of the larger in-town rental submarket,
persistently ranks as one of the top tier submarkets
in terms of absorption, occupancy and rental rates.
Uptown offers urban living at its finest with every
amenity possible for the cosmopolitan, on-the-go lifestyle. The Marquis at Turtle Creek, The Marquis on
McKinney, The Marquis on Gaston, The Marquis on
Cedar Springs, The Marquis at Texas Street, and The
Marquis at West Village are all within this dynamic
neighborhood. This submarket is located just north of
the Dallas Central Business District and features lavish
high-rises, multi-million dollar homes, luxury boutique
hotels, restaurants, art galleries, bars, and some of the
finest specialty retail stores in all of Texas. Nearly 50
million square feet of office space are within a few miles
including the Trammell Crow Center, the Crescent
Towers, and the Park Place Towers, all of which command the highest office rents in the metroplex.
Uptown Dallas has been a star performer as of late.
As of the fourth quarter 2010, occupancy in the Intown
submarket was 94.0%. A total of 869 units were delivered in this area over the last year. The annual same
store rent growth for the area registered a positive 9.2%
increase. Looking out longer term, replacement costs
in the area have escalated rapidly and the cost to build
further competition would require rental rates significantly higher than what is currently being achieved.
Rents will need to rise rapidly in the area before another
wave of new supply is justifiable. Further, development
sites in the area are rare.
.PG.
13
THE MARQUIS OF STATE THOMAS
THE MARQUIS AT STATE THOMAS
Earnings Overview
Earnings Overview
Earnings
Earnings
Year 2010
Year 2011
Net Rental Income
Other Income
Interest Income
Total Revenues
$
2,254,361
112,958
117
$2,367,436
Payroll & Benefits
Turnover Costs
Utilities
Insurance
Property Taxes
Management Expenses
$
(286,396) $
(226,900)
(5,131)
(29,286)
(23,088)
(54,527)
(191,156)
(51,742)
(584,375)
0
(67,637)
(1,520,237) $
847,199 $
(270,141)
(73,718)
(23,816)
(25,245)
(38,844)
(45,233)
(140,474)
(34,620)
(803,943)
0
(94,380)
(1,550,414)
1,595,589
Reserves (Net)
$
(738,933) $
0
(69,625)
(72,586)
0
(684,000)
0
(48,384)
(47,660)
0
$
$
$
$
0
33,946
0
$
$
0
$
3,023,194
122,810
0
$3,146,004
State Thomas Apartments, LP
Franciscan Partners, LLC
0
(815,545)
0
Mortgage Interest
Amortization
$
Property Highlights
Earnings
Year 2011
847,199 $
(738,933)
0
(1,000,230)
(86,119)
(0)
(72,586)
(1,050,670) $
1,595,589
(684,000)
0
(1,001,110)
(90,523)
0
(47,660)
(227,703)
2010
$
Loan Information
Loan Balance
Lender
as of 12/2010
Bank of Texas, N.A.
2011
0.00%
74.25%
1,211 $
0.00%
95.04%
1,271
Interest Rate
Maturity Date
$ 25,270,000 LIBOR + 1.55%
April, 2011
0
2010
2011
2010 Actual
2011 Projected
Projected
Projected
Limited
Limited
Ownership
Taxable
Taxable
Partner
Partner
Percentage
Income
Income
Distributions
Distributions
90.44899%
9.55101%
$
(998,672) $
(51,998)
(254,307) $
26,604
0
0
$
0
0
$ (1,050,670) $
(227,703) $
0
$
0
Debt Service
31%
Operating Expenses
63%
$
Earnings
Year 2010
Debt Service
22%
Capital
Expenditures
3%
Cash to Reserves
26%
Operating Expenses
48%
Non-Operating
3%
.PG.
Capital
Expenditures
2%
14
Non-Operating
2%
THE MARQUIS AT TE XAS STRE ET
THE MARQUIS AT TEXAS STREET
Earnings Overview
Earnings Overview
Earnings
Earnings
Year 2010
Year 2011
Net Rental Income
Other Income
Interest Income
Total Revenues
$
2,833,747
193,576
780
$3,028,102
Payroll & Benefits
Turnover Costs
Utilities
Insurance
Property Taxes
Management Expenses
$
(383,199) $
(124,532)
(78,278)
(61,879)
(109,506)
(86,332)
(124,990)
(51,565)
(74,855)
0
(95,390)
(1,190,527) $
1,837,576 $
(368,052)
(107,464)
(60,426)
(57,136)
(108,609)
(73,491)
(136,112)
(49,224)
(108,452)
0
(104,002)
(1,172,968)
2,143,751
Reserves (Net)
$
(1,502,344) $
0
(153,263)
(88,495)
0
(1,221,367)
0
(207,085)
(98,734)
0
$
$
$
3,103,128
213,591
0
$3,316,719
$
131,158
184,369
409,000
$
0
(207,565)
409,000
$
409,000
$
409,000
CWS Texas Street, LP
CWS Texas Street-Quarry, LP
FG87-Texas Street, LLC
Private Trust *
Private Trust *
Private Trust *
Private Trust *
Mortgage Interest
Amortization
$
$
Property Highlights
Earnings
Earnings
Year 2010
Year 2011
1,837,576 $ 2,143,751
(1,041,143)
(1,019,525)
0
0
(740,223)
(743,328)
(85,044)
(33,877)
(0)
0
(88,495)
(98,734)
(117,329) $
248,287
2010
$
Loan Information
Loan Balance
Lender
as of 12/2010
FHLMC
$ 21,407,816
2011
3.49%
91.69%
863 $
3.49%
94.65%
910
Interest Rate
Maturity Date
4.75%
July, 2011
2010
2011
2010 Actual
2011 Projected
Projected
Projected
Limited
Limited
Ownership
Taxable
Taxable
Partner
Partner
Percentage
Income
Income
Distributions
Distributions
(87,796) $
122,979
39,132
20,841
25,416
72,208
55,508
248,287 $
74,562
217,919
44,762
8,596
10,483
29,783
22,895
409,000
18.23043%
53.28094%
10.94431%
2.10169%
2.56306%
7.28181%
5.59776%
$
$
(154,329) $
(71,473)
(810)
13,091
15,965
45,358
34,868
(117,329) $
$
$
Distributions
12%
Operating Expenses
36%
Debt Service
38%
Debt Service
44%
Distributions
12%
Capital
Expenditures
5%
Operating Expenses
35%
Non-Operating
3%
.PG.
15
Capital
Expenditures
6%
Cash to Reserves
6%
Non-Operating
3%
74,562
217,919
44,762
8,596
10,483
29,783
22,895
409,000
THE MARQUIS AT CE DAR SPRINGS
THE MARQUIS AT CEDAR SPRINGS
Earnings Overview
Earnings Overview
Earnings
Earnings
Year 2010
Year 2011
Net Rental Income
Other Income
Interest Income
Total Revenues
$
2,066,622
115,427
531
$2,182,580
Payroll & Benefits
Turnover Costs
Utilities
Insurance
Property Taxes
Management Expenses
$
(241,596) $
(68,255)
(44,378)
(30,285)
(41,027)
(49,372)
(144,295)
(42,091)
(420,433)
0
(69,414)
(1,151,148) $
1,031,433 $
(236,706)
(74,745)
(40,263)
(26,203)
(37,440)
(44,470)
(153,070)
(36,720)
(494,210)
0
(71,000)
(1,214,827)
1,021,834
Reserves (Net)
$
(957,774) $
0
(66,160)
(61,513)
0
(957,774)
0
(216,314)
(93,333)
0
$
$
$
2,120,233
116,427
0
$2,236,660
$
0
54,014
0
$
0
245,587
0
$
0
$
0
Mortgage Interest
Amortization
$
$
Property Highlights
Earnings
Earnings
Year 2010
Year 2011
1,031,433 $
(775,031)
0
(676,096)
(60,372)
0
(61,513)
(541,579) $
1,021,834
(764,010)
0
(679,844)
(43,335)
0
(93,333)
(558,689)
2010
$
Loan Information
Loan Balance
Lender
as of 12/2010
Metropolitan Life Insurance Co.
$ 13,119,015
2011
0.00%
95.38%
1,097 $
0.00%
95.74%
1,121
Interest Rate
Maturity Date
5.87%
October, 2011
2010
2011
2010 Actual
2011 Projected
Projected
Projected
Limited
Limited
Ownership
Taxable
Taxable
Partner
Partner
Percentage
Income
Income
Distributions
Distributions
CWS Cedar Springs PV WB, LP
CWS Cedar Springs NB WB, LP
CWS Cedar Springs Pooles WB, LP
CWS Cedar Springs Bartons SC, LP
CWS Cedar Springs TLG SC, LP
CWS Cedar Springs Sunset SC, LP
CWS Cedar Springs Oakbrook, LP
CWS Cedar Springs CMHC, LLC
Private Trust *
22.14073%
16.65910%
6.12264%
7.70906%
8.11246%
10.45399%
11.77914%
12.31312%
4.70976%
$
CWS Cedar Springs PV, WB, LP ***
(140,293) $
(58,232)
(35,245)
(35,105)
(44,203)
(69,338)
(74,774)
(90,725)
6,335
(541,579)
(51,524)
(144,122) $
(61,113)
(36,304)
(36,438)
(45,606)
(71,146)
(76,811)
(92,854)
5,706
(558,689)
(53,082)
0
0
0
0
0
0
0
0
0
0
0
$
*** Includes distributions from limited partner interest in some of the above limited partnerships
Debt Service
43%
Operating Expenses
51%
Capital
Expenditures
3%
Debt Service
39%
Operating Expenses
48%
Non-Operating
3%
.PG.
16
Capital
Expenditures
9%
Non-Operating
4%
0
0
0
0
0
0
0
0
0
0
0
THE MARQUIS AT WE ST VILLAGE
THE MARQUIS AT WEST VILLAGE
Earnings Overview
Earnings Overview
Earnings
Earnings
Year 2010
Year 2011
Net Rental Income
Other Income
Interest Income
Total Revenues
$
2,463,450
159,190
355
$2,622,994
Payroll & Benefits
Turnover Costs
Utilities
Insurance
Property Taxes
Management Expenses
$
(243,239) $
(64,719)
(41,695)
(26,918)
(77,882)
(54,500)
(153,559)
(56,858)
(488,020)
0
(111,612)
(1,319,001) $
1,303,993 $
(265,402)
(71,475)
(39,375)
(37,964)
(97,538)
(47,953)
(162,168)
(62,376)
(539,693)
0
(81,710)
(1,405,654)
1,188,026
Reserves (Net)
$
(1,253,577) $
0
(88,966)
3,770
0
(1,083,093)
0
(95,433)
(13,678)
0
$
$
$
$
$
2,438,057
155,623
0
$2,593,680
(78,030)
112,810
0 $
0
0
4,177
0
$
Mortgage Interest
Amortization
$
$
Property Highlights
Earnings
Earnings
Year 2010
Year 2011
1,303,993 $
(1,098,593)
0
(683,181)
(83,668)
0
3,770
(557,680) $
2010
$
Loan Information
Loan Balance
Lender
as of 12/2010
Metropolitan Life Insurance Com $ 18,234,109
1,188,026
(1,083,093)
0
(684,916)
(60,576)
0
(13,678)
(654,236)
2011
0.00%
95.12%
1,361 $
0.00%
92.00%
1,392
Interest Rate
Maturity Date
6.01%
June, 2013
0
CWS Village Residential, LP
2010
2011
2010 Actual
2011 Projected
Projected
Projected
Limited
Limited
Ownership
Taxable
Taxable
Partner
Partner
Percentage
Income
Income
Distributions
Distributions
100.00000%
$
(557,680) $
(654,236) $
0
$
0
$
(557,680) $
(654,236) $
0
$
0
Debt Service
42%
Debt Service
47%
Operating Expenses
53%
Operating Expenses
50%
Capital
Expenditures
3%
Non-Operating
1%
.PG.
Capital
Expenditures
4%
17
THE MARQUIS AT TURTLE CRE E K
THE MARQUIS AT TURTLE CREEK
Earnings Overview
Earnings Overview
Net Rental Income
Other Income
Interest Income
Total Revenues
$
Payroll & Benefits
Turnover Costs
Utilities
Insurance
Property Taxes
Management Expenses
$
$
$
Reserves (Net)
$
$
$
Earnings
Earnings
Year 2010
Year 2011
1,288,521
68,468
17
$1,357,006
$
1,320,912
69,245
0
$1,390,157
(149,063) $
(48,224)
(23,069)
(14,604)
(33,207)
(34,678)
(96,863)
(19,661)
(235,807)
0
(44,637)
(699,812) $
657,194 $
(149,546)
(55,625)
(24,607)
(16,777)
(31,192)
(36,265)
(98,271)
(18,768)
(267,564)
0
(45,605)
(744,220)
645,937
(304,497) $
0
(54,757)
(31,785)
0
(323,405)
0
(171,368)
(35,903)
0
964
(117,119)
150,000 $
0
34,739
150,000
150,000
$
Mortgage Interest
Amortization
Earnings
Year 2011
657,194 $
(104,307)
0
(225,476)
(14,012)
0
(31,785)
281,614 $
645,937
(129,998)
0
(228,592)
(11,519)
0
(35,903)
239,925
2010
$
Loan Information
Loan Balance
Lender
as of 12/2010
Freddie Mac
2011
3.71%
94.42%
1,161 $
3.71%
95.16%
1,181
Interest Rate
Maturity Date
$ 6,131,768 Freddie Ref Bills
Rate + 1.55%
June, 2012
2010
2011
2010 Actual
2011 Projected
Projected
Projected
Limited
Limited
Ownership
Taxable
Taxable
Partner
Partner
Percentage
Income
Income
Distributions
Distributions
87.62376%
12.37624%
$
266,522
15,092
$
229,993
9,932
$
131,436
18,564
$
131,436
18,564
$
281,614
$
239,925
$
150,000
$
150,000
Debt Service
22%
Operating Expenses
52%
$
Property Highlights
Distributions
11%
$
Earnings
Year 2010
150,000
CWS Royale-Franciscan, LP
CWS Royale-SW, LP
Distributions
11%
Capital
Expenditures
4%
Capital
Expenditures
12%
Cash to Reserves
9%
Operating Expenses
51%
Non-Operating
2%
.PG.
Debt Service
23%
18
Non-Operating
3%
THE MARQUIS ON MCKINNEY
THE MARQUIS ON MCKINNEY
Earnings Overview
Earnings Overview
Earnings
Earnings
Year 2010
Year 2011
Net Rental Income
Other Income
Interest Income
Total Revenues
$
2,147,066
113,629
198
$2,260,893
Payroll & Benefits
Turnover Costs
Utilities
Insurance
Property Taxes
Management Expenses
$
(248,334) $
(76,386)
(34,895)
(35,940)
(27,873)
(52,682)
(140,262)
(43,631)
(427,301)
0
(71,754)
(1,159,056) $
1,101,836 $
(242,258)
(74,086)
(33,059)
(35,230)
(28,164)
(46,965)
(141,687)
(41,568)
(481,753)
0
(74,498)
(1,199,268)
1,154,008
Reserves (Net)
$
(815,789) $
0
(101,687)
(50,288)
0
(841,016)
0
(109,158)
(59,215)
0
45,362
(179,435)
0 $
0
(144,619)
0
$
$
$
$
0
$
2,239,221
114,055
0
$2,353,276
$
Mortgage Interest
Amortization
$
$
Property Highlights
Earnings
Earnings
Year 2010
Year 2011
1,101,836 $
(386,335)
0
(667,469)
(46,286)
0
(50,288)
(48,542) $
1,154,008
(625,607)
0
(669,232)
(19,286)
0
(59,215)
(219,332)
2010
$
Loan Information
Loan Balance
Lender
as of 12/2010
Freddie Mac
2011
0.00%
95.72%
1,308 $
0.00%
95.25%
1,378
Interest Rate
Maturity Date
$ 14,341,818 LIBOR + 2.35%
July, 2011
0
McKinney Partners, LP
CWS McKinney Investors, LP
Private Trust *
2010
2011
2010 Actual
2011 Projected
Projected
Projected
Limited
Limited
Ownership
Taxable
Taxable
Partner
Partner
Percentage
Income
Income
Distributions
Distributions
17.14947%
71.67018%
11.18035%
$
(21,276) $
(96,464)
69,198
(50,604) $
(219,028)
50,300
0
0
0
$
0
0
0
$
(48,542) $
(219,332) $
0
$
0
Debt Service
36%
Capital
Expenditures
4%
Debt Service
36%
Cash to Reserves
6%
Operating Expenses
52%
Cash to Reserves
6%
Operating Expenses
50%
Non-Operating
2%
.PG.
Capital
Expenditures
5%
19
Non-Operating
3%
NORTH AND NORTHWE ST DALLAS SUBURBS
The North Dallas area encompasses all submarkets
north of Uptown. The North and Northwest Dallas
suburbs have grown rapidly during the past decade
due to the general demographic shift north and west
of central Dallas. The communities of The Marquis at
Waterview, Brooks on Preston, The Marquis at Park
Central, and Marquis at Lantana all reside in this region. Roadways here include the Dallas North Tollway,
Central Expressway, LBJ Freeway, and George Bush
Freeway. Numerous office parks including Park Central,
the Golden Corridor, Galleria Area, Galatyn Park, and
Legacy are located within this area. The region’s quality
of life is high due to high caliber schools, recreation,
and the finest shopping in the entire D/FW region.
Northpark, Grapevine Mills, The Galleria, and Collin
Creek Mall are just a few of the popular shopping destinations in the area. Also, some of Dallas’s most affluent
areas are included here. Key CWS submarkets in north
Dallas are: Richardson, Plano, Near North Dallas,
Valley Ranch and Northeast Tarrant County. As of
fourth quarter 2010, the occupancy average for Richardson was 94.1%. Rents averaged $926, with same store
rents up 1.5%. Plano’s average occupancy was 95.7%.
Rents averaged $870, with same store rents up 3.0%.
The average occupancy for North Dallas was 92.5%.
Rents averaged $755, with same store rents down 0.4%.
Irving’s gross occupancy average was 91.6%. Rents
averaged $684, with same store rents down 0.1%. The
average occupancy for Grapevine was 92.3%. Rents
averaged $864, with same store rents up 2.1%.
.PG.
20
THE MARQUIS AT WATE RVIEW
THE MARQUIS AT WATERVIEW
Earnings Overview
Earnings Overview
Earnings
Earnings
Year 2010
Year 2011
Net Rental Income
Other Income
Interest Income
Total Revenues
$
5,799,558
616,088
529
$6,416,174
Payroll & Benefits
Turnover Costs
Utilities
Insurance
Property Taxes
Management Expenses
$
(566,463) $
(74,350)
(147,898)
(122,847)
(151,147)
(122,023)
(477,228)
(93,984)
(1,043,924)
0
(198,785)
(2,998,650) $
3,417,525 $
(525,076)
(83,887)
(137,804)
(126,688)
(142,603)
(119,652)
(468,663)
(82,392)
(1,197,345)
0
(203,754)
(3,087,864)
3,493,925
Reserves (Net)
$
(2,357,589) $
0
(430,497)
(170,170)
0
(2,497,037)
0
(503,023)
(164,036)
0
(116,991)
(22,276)
320,000 $
0
(9,829)
320,000
$
$
$
$
320,000
$
5,968,754
613,035
0
$6,581,788
$
Mortgage Interest
Amortization
$
$
Property Highlights
Earnings
Earnings
Year 2010
Year 2011
3,417,525 $ 3,493,925
(2,103,092)
(2,080,396)
0
0
(1,179,175)
(1,188,101)
(113,654)
(104,542)
(0)
0
(170,170)
(164,036)
(148,567) $
(43,150)
2010
$
Loan Information
Loan Balance
Lender
as of 12/2010
Fannie Mae
$ 34,594,744
2011
3.01%
96.66%
949 $
3.01%
96.17%
982
Interest Rate
Maturity Date
5.97%
May, 2013
320,000
CWS Crystal Lake-Waterview, LP
CWS Diamond Valley-Waterview, LP
CWS Friendly Village-Waterview, LP
CWS Palm Valley-Waterview, LP
CWS Shadow Hills-Waterview, LP
Southpac I, LP
San Antonio FB II, LP
CWS Sunset-Waterview, LP
CWS Univ Winterhaven-Waterview, LP
Private Trust *
2010
2011
2010 Actual
2011 Projected
Projected
Projected
Limited
Limited
Ownership
Taxable
Taxable
Partner
Partner
Percentage
Income
Income
Distributions
Distributions
(14,493) $
(3,455)
(18,131)
6,798
34,439
(22,656)
(30,467)
12,072
(34,753)
27,497
(43,150) $
14,557
18,420
70,768
58,450
19,959
13,939
13,939
48,817
53,467
7,685
320,000
4.54916%
5.75630%
22.11485%
18.26564%
6.23708%
4.35581%
4.35581%
15.25529%
16.70848%
2.40158%
$
$
(19,279) $
(9,510)
(41,396)
(12,417)
27,878
(27,239)
(35,050)
(3,976)
(52,330)
24,751
(148,567) $
$
$
14,557
18,420
70,768
58,450
19,959
13,939
13,939
48,817
53,467
7,685
320,000
Distributions
5%
Operating Expenses
46%
Debt Service
37%
Capital
Expenditures
7%
Distributions
5%
Cash to Reserves
2%
Operating Expenses
47%
Non-Operating
3%
.PG.
21
Debt Service
38%
Capital
Expenditures
8%
Non-Operating
2%
THE MARQUIS AT PARK CE NTRAL
THE MARQUIS AT PARK CENTRAL
Earnings Overview
Earnings Overview
Earnings
Earnings
Year 2010
Year 2011
Net Rental Income
Other Income
Interest Income
Total Revenues
$
3,359,356
253,396
1,291
$3,614,043
Payroll & Benefits
Turnover Costs
Utilities
Insurance
Property Taxes
Management Expenses
$
(362,192) $
(60,431)
(59,755)
(56,296)
(89,724)
(70,232)
(238,311)
(65,065)
(602,947)
0
(113,006)
(1,717,959) $
1,896,085 $
(371,579)
(62,380)
(58,216)
(37,205)
(82,637)
(64,789)
(246,701)
(56,928)
(717,143)
0
(115,561)
(1,813,139)
1,888,882
Reserves (Net)
$
(876,886) $
0
(216,675)
(64,703)
0
(930,208)
0
(395,668)
(106,440)
0
179,755
(499,977)
417,600 $
0
293,434
750,000
$
$
$
$
417,600
$
3,439,556
262,465
0
$3,702,020
$
Mortgage Interest
Amortization
$
$
Property Highlights
Earnings
Earnings
Year 2010
Year 2011
1,896,085 $
(293,817)
0
(766,867)
(52,210)
0
(64,703)
718,488 $
1,888,882
(376,770)
0
(772,819)
(49,493)
0
(106,440)
583,360
2010
$
Loan Information
Loan Balance
Lender
as of 12/2010
Freddie Mac
$ 19,012,589
2011
5.00%
94.36%
966 $
8.98%
94.24%
990
Interest Rate
Maturity Date
LIBOR + 1.4%
March, 2012
750,000
CWS HCN Park Central, LP
CWS HCM Park Central, LP
CWS LM Park Central, LP
CWS Park Marquis, LP
Private Trust *
Private Trust *
Private Trust *
2010
2011
2010 Actual
2011 Projected
Projected
Projected
Limited
Limited
Ownership
Taxable
Taxable
Partner
Partner
Percentage
Income
Income
Distributions
Distributions
30.82106%
16.82138%
15.55097%
19.53635%
3.49503%
11.64587%
2.12934%
$
$
173,665
116,217
96,370
75,711
51,914
172,983
31,628
718,488
$
$
131,634
93,278
75,163
49,069
47,399
157,939
28,878
583,360
$
$
128,709
70,246
64,941
81,584
14,595
48,633
8,892
417,600
$
$
231,158
126,160
116,632
146,523
26,213
87,344
15,970
750,000
CWS Park Marquis, LP ***
15,912
12,428
10,667
*** Includes distributions from limited partner interest in CWS HCN Park Central, LP, CWS HCM Park Central, LP, and CWS LM Park Central, LP
Distributions
12%
Debt Service
24%
Debt Service
23%
Distributions
19%
Capital
Expenditures
6%
Cash to Reserves
9%
Operating Expenses
47%
Operating Expenses
45%
Non-Operating
2%
.PG.
22
Capital
Expenditures
10%
Non-Operating
3%
19,157
MARQUIS AT LANTANA
THE
MARQUIS
Q
AT LANTANA
Earnings Overview
Earnings Overview
Earnings
Earnings
Year 2010
Year 2011
Net Rental Income
Other Income
Interest Income
Total Revenues
$
2,749,938
275,674
1,232
$3,026,844
Payroll & Benefits
Turnover Costs
Utilities
Insurance
Property Taxes
Management Expenses
$
(340,773) $
(42,863)
(23,091)
(38,184)
(70,314)
(61,307)
(237,940)
(46,774)
(428,509)
0
(94,759)
(1,384,513) $
1,642,331 $
(340,168)
(41,384)
(19,951)
(34,211)
(68,549)
(59,304)
(225,652)
(39,888)
(496,549)
0
(95,683)
(1,421,339)
1,638,097
Reserves (Net)
$
(657,130) $
0
(143 382)
(143,382)
(112,070)
0
(1,027,754)
0
(214 153)
(214,153)
(93,589)
0
$
$
$
$
$
2,779,910
279,526
0
$3,059,436
(113,848)
(15,900)
600,000 $
600,000
0
297,399
600,000
$
Net Operating Income / (Loss)
Mortgage Interest
Amortization
$
$
Property Highlights
Earnings
Earnings
Year 2010
Year 2011
1,642,331 $
(657,130)
0
(692,678)
(77,949)
0
(112,070)
102,504 $
1,638,097
(710,290)
0
(696,572)
(77,949)
0
(93,589)
59,698
2010
$
Loan Information
Loan Balance
Lender
as of 12/2010
Freddie Mac
2011
7.79%
95.84%
965 $
7.79%
94.98%
985
Interest Rate
Maturity Date
$18,200,000 LIBOR + 3.29%
January, 2016
600,000
Edge CC Lantana, LP
FV C Lantana, LP
FVLA C Lantana, LP
TIG C Lantana, LP
Trop C Lantana, LP
Private Trust
2010
2011
2010 Actual
2011 Projected
Projected
Projected
Limited
Limited
Ownership
Taxable
Taxable
Partner
Partner
Percentage
Income
Income
Distributions
Distributions
23,545 $
18,235
5,487
4,337
(1,425)
9,519
59,698 $
273,367
191,336
37,224
36,084
20,096
41,892
600,000
12 160
12,160
143 916
143,916
45.56122%
31.88939%
6.20407%
6.01392%
3.34941%
6.98198%
$
$
CWS Lantana
Lantana, LP ***
43,048
31,886
8,143
6,912
9
12,507
102,504
22 428
22,428
$
$
$
$
*** Includes distributions from limited partner interest in all above listed partnerships
Distributions
20%
Operating Expenses
46%
Debt Service
22%
Distributions
18%
Capital
Expenditures
5%
Capital
Expenditures
6%
Cash to Reserves
4%
Operating Expenses
42%
Non-Operating
3%
.PG.
Debt Service
31%
23
Non-Operating
3%
273,367
191,336
37,224
36,084
20,096
41,892
600,000
143 916
143,916
SOUTHWE ST FORT WORTH
Southwest Fort Worth is one of the most prestigious
locations in the D/FW region and home to the Colonial Country Club and Texas Christian University.
The Marquis at Stonegate, The Marquis at Bellaire
Ranch and The Marquis at Willow Lake are all situated along Hulen Street between Interstate 20 to the
south and Interstate 30 to the north. Southwest Fort
Worth is a likely destination for residents looking for
well-planned neighborhoods, quality schools and the
finest shopping and dining available in all of Fort
Worth. The region’s quality recreational amenities
include the Fort Worth Zoo, Botanical Gardens and
the Trinity River Trails which are perfect for biking,
walking or rollerblading. The district is also home to
the Amon Carter Art Museum of Fort Worth. Prominent Fort Worth employers such as Lockheed Martin,
Pier 1 Imports and RadioShack are within a few miles
of each community. No new apartments came online
in Southwest Fort Worth in 2010. Southwest Fort
Worth occupancy rates were 90.4% as of the fourth
quarter 2010. Same store rents increased by 1.3% with
average rents landing at $653.
.PG.
24
THE MARQUIS AT BE LLAIRE RANCH
THE MARQUIS
Q
AT BELLAIRE RANCH
Earnings Overview
Earnings Overview
Earnings
Earnings
Year 2010
Year 2011
Net Rental Income
Other Income
Interest Income
Total Revenues
$
3,951,624
469,394
2,146
$4,423,164
Payroll & Benefits
Turnover Costs
Utilities
Insurance
Property Taxes
Management Expenses
$
(369,671) $
(49,176)
(66,912)
(46,981)
(131,003)
(78,700)
(275,426)
(58,920)
(767,837)
0
(137,257)
(1,981,883) $
2,441,280 $
(390,370)
(44,482)
(63,149)
(45,581)
(129,824)
(82,267)
(272,038)
(52,332)
(921,933)
0
(141,461)
(2,143,437)
2,417,050
(1,620,380) $
0
(282 894)
(282,894)
(61,803)
0
(1,620,379)
0
(638 638)
(638,638)
(141,010)
0
$
$
Reserves (Net)
$
$
$
4,119,340
441,146
0
$4,560,487
(52,042)
627,839
1,052,000 $
$
765,136
281,318
53,655
351,996
$
Earnings
Year 2011
$
2,441,280 $ 2,417,050
(1,620,380)
(1,620,379)
0
0
(450,167)
(455,647)
(90,505)
(90,505)
(0)
(0)
(61,803)
(141,010)
$
218,424 $
109,509
Property Highlights
2010
$
Loan Information
Loan Balance
Lender
as of 12/2010
Deutsche Bank Berkshire Mtge
$30,558,000
2011
296.61%
94.09%
1,108 $
Interest Rate
Maturity Date
5.23%
April, 2015
2010
2011
2010 Actual
2011 Projected
Projected
Projected
Limited
Limited
Ownership
Taxable
Taxable
Partner
Partner
Percentage
Income
Income
Distributions
Distributions
17.97655%
29.21445%
15.73034%
20.22472%
11.23596%
5.61798%
$
$
(80,169) $
(54,483)
105,172
135,221
75,123
37,561
218,424 $
(100,851) $
(88,093)
88,901
114,301
63,501
31,750
109,509 $
137,545
223,530
120,358
154,747
85,970
42,985
765,136
$
$
*N
Note: D
Depreciation
i i iis not iincluded
l d d as d
depreciable
i bl b
basis
i iis not k
known
Distributions
21%
Distributions
7%
Debt Service
32%
Operating Expenses
44%
Non-Operating
1%
.PG.
Debt Service
33%
Capital
Expenditures
13%
Capital
Expenditures
E
di
6%
Operating Expenses
40%
98.52%
94.32%
1,152
254,139
CWS Bellaire Laguna, LP
CWS Bellaire Feliz Laguna, LP
Private Trust *
Private Trust *
Private Trust *
Private Trust *
Mortgage Interest
Amortization
Earnings
Year 2010
25
Non-Operating
3%
45,685
74,245
39,977
51,399
28,555
14,277
254,139
THE MARQUIS AT WILLOW LAKE
THE MARQUIS
Q
AT WILLOW LAKE
Earnings Overview
Earnings Overview
Net Rental Income
Other Income
Interest Income
Total Revenues
$
Payroll & Benefits
Turnover Costs
Utilities
Insurance
Property Taxes
Management Expenses
$
Reserves (Net)
$
Earnings
Earnings
Year 2010
Year 2011
1,763,342
121,910
310
$1,885,562
$
1,787,607
125,186
0
$1,912,793
(232,244) $
(26,808)
(24,376)
(42,435)
(50,805)
(44,418)
(136,439)
(29,648)
(298,073)
0
(60,612)
(945,858) $
939,704 $
(195,314)
(28,970)
(26,441)
(46,255)
(50,326)
(85,024)
(130,932)
(26,952)
(367,009)
0
(61,380)
(1,018,603)
894,190
(593,733) $
0
(151 655)
(151,655)
(74,691)
0
(593,733)
0
(159 217)
(159,217)
(76,606)
0
$
24,107
(38,440)
105,292 $
0
40,658
105,292
$
105,292
105,292
$
$
$
CWS O'Connor-Willow Lake, LP
CWS Feliz-Willow Lake, LP
CWS Margate-Willow Lake, LP
CWS Winter-Willow Lake, LP
Mortgage Interest
Amortization
$
$
Property Highlights
Earnings
Earnings
Year 2010
Year 2011
939,704 $
(593,733)
0
(491,694)
(49,200)
(0)
(74,691)
(269,614) $
894,190
(593,733)
0
(494,589)
(49,200)
0
(76,606)
(319,938)
2010
$
Loan Information
Loan Balance
Lender
as of 12/2010
Freddie Mac
$ 9,600,000
2011
6.00%
96.04%
1,109 $
Interest Rate
6.00%
95.98%
1,125
Maturity Date
6.10% September, 2012
2010
2011
2010 Actual
2011 Projected
Projected
Projected
Limited
Limited
Ownership
Taxable
Taxable
Partner
Partner
Percentage
Income
Income
Distributions
Distributions
$
(47,680) $
(66,153)
(83,239)
(72,542)
(54,357) $
(81,137)
(98,979)
(85,464)
13,970
31,351
32,934
27,036
$
13,970
31,351
32,934
27,036
$
(269,614) $
(319,938) $
105,292
$
105,292
(29 151)
(29,151)
(119,447)
(34 505)
(34,505)
(142,158)
13.26819%
29.77574%
31.27898%
25.67709%
CWS O'Connor-Willow
O'Connor Willow Lake,
Lake L.P.***
L P ***
CWS Stonelake Associates*,***
11 203
11,203
47,517
***Includes distributions from limited partner interest in all above listed partnerships
Distributions
6%
Operating Expenses
50%
Debt Service
31%
Distributions
5%
Capital
Expenditures
8%
Capital
Expenditures
8%
Cash to Reserves
1%
Operating Expenses
52%
Non-Operating
4%
.PG.
Debt Service
31%
26
Non-Operating
4%
11 203
11,203
47,517
THE MARQUIS AT STONEGATE
THE MARQUIS
Q
AT STONEGATE
Earnings Overview
Earnings Overview
Earnings
Earnings
Year 2010
Year 2011
Net Rental Income
Other Income
Interest Income
Total Revenues
$
3,234,189
307,168
883
$3,542,240
Payroll & Benefits
Turnover Costs
Utilities
Insurance
Property Taxes
Management Expenses
$
(399,375) $
(66,326)
(74,220)
(67,412)
(67,037)
(76,238)
(176,885)
(57,937)
(567,387)
0
(110,821)
(1,663,638) $
1,878,602 $
(363,837)
(66,757)
(81,403)
(65,617)
(64,292)
(74,584)
(184,275)
(54,876)
(758,740)
0
(114,250)
(1,828,631)
1,829,704
(237,533) $
0
(230 776)
(230,776)
(61,831)
0
(311,225)
0
(289 206)
(289,206)
(97,467)
0
$
$
Reserves (Net)
$
$
$
$
3,344,704
313,631
0
$3,658,335
94,308
(213,442)
1,229,328 $
913,025
0
97,522
1,229,328
$
$
$
Property Highlights
Earnings
Year 2011
1,878,602 $
(237,533)
0
(910,463)
(40,176)
0
(61,831)
628,599 $
1,829,704
(311,225)
0
(915,721)
(37,191)
0
(97,467)
468,100
2010
$
Loan Information
Loan Balance
Lender
as of 12/2010
Freddie Mac
2011
13.77%
94.06%
934 $
13.77%
94.18%
963
Interest Rate
Maturity Date
$15,900,000 LIBOR + 1.37%
June, 2012
913,025
CWS O'Connor-Stonegate, LP
CWS Fort Worth, LP
CWS Feliz-Stonegate, LP
CWS Margate-Stonegate, LP
CWS Winter-Stonegate, LP
Mortgage Interest
Amortization
Earnings
Year 2010
2010
2011
2010 Actual
2011 Projected
Projected
Projected
Limited
Limited
Ownership
Taxable
Taxable
Partner
Partner
Percentage
Income
Income
Distributions
Distributions
11.95444%
9.90151%
26.82749%
28.18189%
23.13467%
CWS O'Connor
O'Connor-Stonegate,
Stonegate L.P.***
L P ***
CWS Stonelake Associates*,***
$
48,915
54,237
203,673
181,816
139,958
$
29,728
38,346
160,615
136,584
102,827
$
109,147
90,403
244,942
257,308
211,225
$
109,147
90,403
244,942
257,308
211,225
$
628,599
$
468,100
$
913,025
$
913,025
66 598
66,598
283,467
49 520
49,520
211,035
97 148
97,148
412,025
97 148
97,148
412,025
***Includes distributions from limited partner interest in all above listed partnerships
Distributions
35%
Debt Service
7%
Distributions
33%
Capital
Expenditures
6%
Operating Expenses
47%
Capital
Expenditures
8%
Cash to Reserves
3%
Operating Expenses
49%
Non-Operating
2%
.PG.
Debt Service
8%
27
Non-Operating
2%
SAN ANTONIO
R
E
G
F E A T U R E D
I
O
N
P R O P E R T I E S
The Marquis at Deerfield
The Park at Walkers Ranch
The Marquis at Rogers Ranch
CWS C
TA
API
RT N
L PA
ERS
.PG.
28
2 010 A N N
UA L
RE P
ORT
MACRO OVE RVIEW
S O U R C E S
San Antonio Business Journal, Austin Investor Interests
• The Marquis at Rogers Ranch
36
1604
• The Marquis at Deerfield
• The Park at Walker’s Ranch
10
1535
Castle Hills
San Antonio
International
Airport
16
Windcrest
410
Leon Valley
281
Balcones
Heights
1604
421
151
Alamo Heights
36
Kirby
San Antonio
37
410
36
90
The San Antonio market experienced job
growth of 0.8% from October of 2009 to October 2010. Despite a difficult national economy, San Antonio growth was consistent
with its stable reputation. Major employers
include AT&T, H.E.B Food Stores, United
Services Automobile Association (USAA),
Baptist Health System, and the United
States military. The low cost of living, quality workforce, NAFTA-related trade hub,
and government incentives make it very appealing for corporate expansions and relocations. Rents increased by 3.6% in 2010. The
overall occupancy for the San Antonio MSA
was 91.6% at the end of 2010, compared to
88.52% at the end of 2009. During 2010,
2,600 new units were delivered in the marketplace, compared to an average of 3,300
new units over the past five years. There are
less than 1,000 additional new units expected in 2011. It is expected that 2011 will be
a positive year with growth in occupancy as
well as rents. The long-term fundamentals
for the market look very healthy, as construction has experienced a significant drop off.
San Antonio has held up relatively well compared to most cities and is an early participant in turning the corner to positive growth.
.PG.
29
SAN ANTONIO REGION
MPF Data
.PG.
30
NORTHWE ST SAN ANTONIO
The northwest San Antonio submarket is home to the
most prosperous households in the metro area. Prestigious neighborhoods, numerous parks, high quality schools, and multiple country clubs fill the Texas
hill country of northwest San Antonio. The area is
home to many of the city’s best amenities, including
shopping, entertainment, and transportation. Central
Park Mall and North Star Mall are home to San Antonio’s most renowned collection of national retailers
including Dillard’s, Macy’s and Saks Fifth Avenue.
The Shops at La Cantera, a 1.3 million square foot
shopping center, opened in 2005 and includes Nordstrom, Neiman Marcus, Dillard’s and Foley’s. The
City of San Antonio continues to develop the 311-acre
land site it purchased to create the largest park in the
city. The adjacent tract to the park, Alon Town Center,
is a new mixed-use development containing 225,000
square feet of retail and restaurants and 85,000 square
feet of luxury office space. Tenants include H.E.B’s
high end grocery store, Barnes & Noble, and a mixture
of cafes, distinctive shops, and restaurants.
The northwest submarket saw 1,488 new apartments delivered in 2010, while no apartments are expected in 2011. Occupancy for the area at the end of
2010 was 91.8%, up 1.3% from 2009 as the submarket
saw positive absorption of 1,792 units. It is unlikely
there will be significant new development in the submarket over the next few years. The lack of new construction combined with a reviving economy is a sign
of a bright future for northwest San Antonio.
.PG.
31
THE MARQUIS AT DE E RFIE LD
THE MARQUIS AT DEERFIELD
Earnings Overview
Earnings Overview
Earnings
Earnings
Year 2010
Year 2011
Net Rental Income
Other Income
Interest Income
Total Revenues
$
3,335,364
317,978
976
$3,654,319
Payroll & Benefits
Turnover Costs
Utilities
Insurance
Property Taxes
Management Expenses
$
(391,890) $
(46,941)
(48,523)
(66,432)
(65,277)
(78,524)
(186,447)
(60,440)
(708,928)
0
(114,303)
(1,767,704) $
1,886,615 $
(405,934)
(49,983)
(48,073)
(61,139)
(79,368)
(73,992)
(176,989)
(51,300)
(805,195)
0
(115,337)
(1,867,310)
1,827,247
Reserves (Net)
$
(895,434) $
0
(149,032)
(129,477)
0
0
(16,977)
(95,695)
600,000 $
(553,159)
0
(179,775)
(99,141)
0
0
0
(95,172)
900,000
$
$
$
$
600,000
$
3,376,154
318,403
0
$3,694,557
$
Mortgage Interest
Amortization
Property Highlights
$
Loan Information
Loan Balance
Lender
as of 12/2010
Freddie Mac
1,827,247
(553,159)
0
(731,358)
(9,006)
0
(99,141)
434,583
$ 15,440,000
2011
9.20%
96.16%
853 $
13.80%
94.95%
874
Interest Rate
Maturity Date
5.72%
April, 2011
2010
2011
2010 Actual
2011 Projected
Projected
Limited
Limited
Ownership
Taxable
Taxable
Partner
Partner
Percentage
Income
Income
Distributions
Distributions
17.05313%
29.41272%
21.67174%
31.86241%
$
24,823
30,062
21,103
20,227
$
82,525
129,586
94,433
128,039
$
102,319
176,476
130,030
191,174
$
153,478
264,714
195,046
286,762
$
96,214
$
434,583
$
600,000
$
900,000
Distributions
24%
Capital
Expenditures
4%
Cash to Reserves
3%
Operating Expenses
50%
Non-Operating
4%
Debt Service
15%
5%
Cash to Reserves
3%
Non-Operating
3%
.PG.
1,886,615 $
(895,434)
0
(728,089)
(37,400)
(0)
(129,477)
96,214 $
2010
Debt Service
25%
Operating Expenses
48%
$
Earnings
Year 2011
Projected
Distributions
16%
$
Earnings
Year 2010
900,000
CWS Deerfield Assoc/Huebner Bitters Assoc
Newport Coral Lake Assoc Ltd
Harbor Cove/Deerfield Assoc Ltd
Stonegate/Deerfield Assoc Ltd
32
THE PARK AT WALKE RS RANCH
THE PARK AT WALKERS RANCH
Earnings Overview
Earnings Overview
Earnings
Earnings
Year 2010
Year 2011
Net Rental Income
Other Income
Interest Income
Total Revenues
$
2,639,167
218,727
1,677
$2,859,572
Payroll & Benefits
Turnover Costs
Utilities
Insurance
Property Taxes
Management Expenses
$
(426,608) $
(64,280)
(54,721)
(50,084)
(50,665)
(66,825)
(141,133)
(61,086)
(487,227)
0
(90,314)
(1,492,943) $
1,366,629 $
(420,614)
(62,646)
(57,945)
(55,293)
(54,542)
(69,312)
(156,619)
(61,008)
(545,784)
0
(92,132)
(1,575,895)
1,345,174
Reserves (Net)
$
(1,067,234) $
(285,855)
(124,074)
(47,552)
63,406
0
(412,237)
506,918
0 $
(1,067,232)
(286,007)
(208,646)
(98,146)
63,557
0
108,512
142,788
0
$
$
$
$
0
$
2,701,473
219,596
0
$2,921,069
$
$
$
Property Highlights
1,366,629 $
(741,131)
(285,855)
(968,043)
(18,133)
0
(47,552)
(694,085) $
1,345,174
(724,451)
(286,007)
(971,837)
(16,585)
0
(98,146)
(751,851)
2010
Outstanding Investment (ROI) Class A
Outstanding Investment (ROI) Class B
$
Loan Information
Loan Balance
Lender
as of 12/2010
PNC Bank
Walkers Ranch Lender Group
$ 14,678,132
$ 3,177,850
2011
0.00%
7.00%
96.14%
764 $
Interest Rate
0.00%
7.00%
94.40%
798
Maturity Date
2010
2011
2010 Actual
2011 Projected
Projected
Projected
Limited
Limited
Ownership
Taxable
Taxable
Partner
Partner
Percentage
Income
Income
Distributions
Distributions
49.66950%
21.67037%
8.67790%
14.82465%
5.15757%
Partnerships above are not direct tenant-in-common owners effective 2010
$
(390,123) $
(136,987)
(51,089)
(76,127)
(39,759)
(418,815) $
(149,505)
(56,102)
(84,690)
(42,739)
0
0
0
0
0
$
0
0
0
0
0
$
(694,085) $
(751,851) $
0
$
0
WRLG One, LP (Class B)
222,449
Operating Expenses
61%
Earnings
Year 2011
0
CWS Walker's Ranch IR, LP
CWS Walker's Ranch IR HCN, LP
CWS Walker's Ranch IR HCM, LP
CWS Walker's Ranch IR LM, LP
Private Trust
Mortgage Interest
Amortization
Earnings
Year 2010
Debt Service
29%
Debt Service
32%
Capital
Expenditures
8%
Capital
Expenditures
5%
Operating Expenses
59%
Non-Operating
2%
.PG.
33
Non-Operating
4%
222,450
THE MARQUIS AT ROGE RS RANCH
THE MARQUIS AT ROGERS RANCH
Earnings Overview
Earnings Overview
Earnings
Earnings
Year 2010
Year 2011
Net Rental Income
Other Income
Interest Income
Total Revenues
$
2,652,004
273,611
500
$2,926,115
Payroll & Benefits
Turnover Costs
Utilities
Insurance
Property Taxes
Management Expenses
$
(338,685) $
(45,115)
(38,546)
(53,717)
(62,474)
(67,749)
(179,765)
(50,991)
(620,973)
(16,711)
(91,710)
(1,566,436) $
1,359,679 $
(336,937)
(50,829)
(35,388)
(51,241)
(65,962)
(66,076)
(172,934)
(42,744)
(689,511)
(15,312)
(95,429)
(1,622,363)
1,428,599
Reserves (Net)
$
(1,244,749) $
(153,184)
(102,732)
24,231
30,388
(1,244,748)
(153,500)
(128,502)
(75,569)
30,700
$
$
$
$
$
2,760,754
290,208
0
$3,050,962
(91,351)
177,718
0 $
0
0
143,021
0
$
Mortgage Interest
Amortization
$
$
Property Highlights
Earnings
Year 2011
1,359,679 $
(934,620)
(153,184)
(731,615)
0
0
24,231
(435,510) $
2010
$
Loan Information
Loan Balance
Lender
as of 12/2010
Freddie Mac
Rogers Ranch Lender Group
$ 14,191,633
$ 1,534,999
1,428,599
(998,554)
(153,500)
(733,951)
0
0
(75,569)
(532,975)
2011
0.00%
94.41%
959 $
Interest Rate
0.00%
94.85%
991
Maturity Date
6.52% November, 2011
10.00% December, 2011
2010
2011
2010 Actual
2011 Projected
Projected
Projected
Limited
Limited
Ownership
Taxable
Taxable
Partner
Partner
Percentage
Income
Income
Distributions
Distributions
100.00000%
$
(435,510) $
(532,975) $
0
$
0
$
(435,510) $
(532,975) $
0
$
0
Debt Service
37%
Debt Service
40%
Operating Expenses
56%
Earnings
Year 2010
0
Stonegate Austin-Rogers Ranch LP
Operating Expenses
56%
Capital
Expenditures
4%
Non-Operating
3%
.PG.
Capital
Expenditures
4%
34
HOUSTON
R
E
G
F E A T U R E D
I
O
N
P R O P E R T I E S
The Marquis at Bellaire *
The Marquis on Eldridge Parkway*
The Marquis at Pin Oak Park*
The Marquis at Westchase *
The Marquis on Westheimer *
The Marquis on Memorial*
The Marquis on Briar Forest
Marquis Downtown Lofts
CWS C
TA
API
RT N
L PA
ERS
.PG.
35
2 010 A N N
UA L
RE P
ORT
MACRO OVE RVIEW
S O U R C E S
Texas A&M Real Estate, US Bureau of Census, REIS, MPF Research, Greater Houston Partnership
1960
North
Houston
Jersey
Village
• The Marquis on Memorial
290
6
59
Highland
Heights
• The Marquis on Briar Forest
Bear
Creek
Park
East
Houston
45
610
Houston
Heights
Hunters
Creek
Village
6
10
10
Houston
• The Marquis on Elridge Parkway
• Marquis Downtown Lofts
610
• The Marquis at Westchase
• The Marquis on Westheimer
• The Marquis at Bellaire
59
Bellaire
225
• The Marquis at Pin Oak Park
610
610
288
According to the latest U.S. Census, Houston
has a population of over two million people,
making it the fourth-largest city in the nation
and the sixth-largest metropolitan area with
5.5 million people in the 10-county metro.
Houston’s economy showed signs of recovery
in 2010, recording positive job growth for the
year. The growth is expected to continue in
2011 with an estimated gain of 18,200 jobs.
Houston’s diverse markets including the energy industry, international trade through the
Port of Houston, and the Texas Medical Cen-
45
Pasadena
South
Houston
ter, the largest medical complex in the nation,
have helped to shield Houston’s unemployment rate of 8.6% as compared to the national
average of 9.2%. The metropolitan region’s
population base has grown by an impressive
677,045 people (11%) from 2005 to 2009.
The Houston MSA population is expected to
grow by another 2.9 million people by 2030.
Healthy in-migration and the youngest population of the nation’s ten largest metro areas
are major contributing factors to this future
population expansion.
.PG.
10
36
HOUSTON REGION
MPF Data
.PG.
37
E NE RGY CORRIDOR SUBMARKET
Houston’s Energy Corridor, home to The Marquis on
Briar Forest, is strategically located along Interstate
10, midway between Beltway 8 and Grand Parkway,
and is comprised of two of Houston’s most dynamic
business centers: The Energy Corridor Management
District (EMCD) and Park 10 Regional Business
Park. The Energy Corridor is the fourth largest employment center in the region with 73,000 employees
and is home to multi-national and local energy companies such as BP America Inc.’s headquarters, Shell
Exploration and Production, ExxonMobil Corpora-
tion, ConocoPhillips world headquarters, Citgo Petroleum Corporation, Cabot Oil and Gas, and Global
Santa Fe, as well as a host of additional oil and gas exploration/production companies. The Corridor currently contains over 16 million square feet of office
space, 2,000 hotel rooms, 10,000 luxury apartment
units, 1.0 million square feet of retail, and 1.4 million
square feet of service center and distribution space.
Additionally, the recent expansion of Interstate 10
along the corridor will provide increased access and
promote growth in the area.
.PG.
38
THE MARQUIS ON BRIAR FORE ST
THE MARQUIS AT BRIAR FOREST
Earnings Overview
Earnings Overview
Net Rental Income
Other Income
Interest Income
Total Revenues
$
Payroll & Benefits
Turnover Costs
Utilities
Insurance
Property Taxes
Management Expenses
$
Preferred Equity
Reserves (Net)
$
$
$
$
$
$
Earnings
Earnings
Year 2010
Year 2011
3,563,505
344,718
792
3,909,015
$
3,626,342
369,348
0
3,995,690
$
(390,905) $
(58,046)
(64,993)
(39,660)
(78,080)
(84,690)
(255,002)
(139,567)
(589,235)
0
(121,771)
(1,821,948) $
2,087,066 $
(381,085)
(60,389)
(71,933)
(38,556)
(94,310)
(94,199)
(266,208)
(132,996)
(666,135)
0
(124,371)
(1,930,182)
2,065,509
(1,776,953) $
0
(113,462)
(172,897)
380,718
(1,776,953)
0
(197,751)
(164,498)
0
36,292
(440,765)
0 $
0
0
73,693
0
$
Mortgage Interest
Amortization
$
$
Property Highlights
Earnings
Earnings
Year 2010
Year 2011
2,087,066 $
(1,418,485)
0
(893,809)
(8,990)
(0)
(172,897)
(407,115) $
2,065,509
(1,398,398)
0
(897,404)
(8,990)
0
(164,498)
(403,781)
2010
$
Loan Information
Loan Balance
Lender
as of 12/2010
PNC Bank
Briar Forest Lender Group 1
$ 25,792,957
$ 1,313,534
2011
0.00%
95.72%
788 $
Interest Rate
0.00%
94.55%
811
Maturity Date
0
2010
2011
2010 Actual
2011 Projected
Projected
Projected
Limited
Limited
Ownership
Taxable
Taxable
Partner
Partner
Percentage
Income
Income
Distributions
Distributions
2.19759%
6.33395%
21.72965%
5.73889%
17.70719%
14.58058%
26.11397%
5.59817%
(11,674)
(25,501)
(85,633)
(13,500)
(63,670)
(74,726)
(114,076)
(18,334)
(407,115)
(77,625)
(11,601)
(25,290)
(84,909)
(13,309)
(63,080)
(74,240)
(113,205)
(18,147)
(403,781)
(77,004)
CWS Briar Forest-Crystal LLC
CWS Briar Forest-Diamond LLC
CWS Briar Forest-Palm LLC
CWS Briar Forest-Shadow LLC
CWS Briar Forest-Sunset LLC
CWS Briar Forest-UWH LLC
CWS Briar Forest-Friendly LLC
Private Trust
CWS Briar Forest LP ***
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
79,942
88,112
*** Includes Distributions from limited partner interest in all above listed partnerships
Briar Forest Lender Group 1
Debt Service
41%
Capital
Expenditures
3%
Debt Service
44%
5%
Cash to Reserves
9%
Operating Expenses
43%
Operating Expenses
47%
Non-Operating
4%
.PG.
39
Non-Operating
4%
EAST DOWNTOWN HOUSTON
Marquis Downtown Lofts is located on the eastern
edge of downtown in a gentrifying neighborhood
situated near Houston’s largest employment centers:
Downtown and the Texas Medical Center. Situated
just east of downtown, residents enjoy unmatched
views of the city skyline. The property is within walking distance of Discovery Green Park, Minute Maid
Park (Astros), the George R. Brown Convention Cen-
ter, the Toyota Center (Rockets), the Houston Pavilions and The Shops at Houston Center. Residents enjoy connectivity to all points of interest in the Houston
area with convenient access to the major freeways,
major thoroughfares, METRO Transit, and the anticipated METRO Light Rail (LRT) from the East
End and Southeast corridors connecting to downtown
and the Main Street Red Line.
.PG.
40
ATLANTA
R
E
G
F E A T U R E D
I
O
N
P R O P E R T Y
The Marquis at Briarcliff
CWS C
TA
API
RT N
L PA
ERS
.PG.
41
2 010 A N N
UA L
RE P
ORT
MACRO OVE RVIEW
S O U R C E S
Metro Atlanta Chamber of Commerce, REIS, U.S. Bureau of Labor Statistics,
U.S. Census Bureau, ProximityOne, and Real Estate Center at Texas A&M University
85
75
North Atlanta
Smyrna
Tucker
141
Vinings
400
• The Marquis at Briarcliff
70
North
Decatur
85
70
285
75
Belvedere
Atlanta
20
20
Gresha Park
As the recession gripped the nation, job
creation in Atlanta came to an abrupt halt
and job losses began to mount. The Atlanta MSA suffered job losses estimated
at 140,000 in 2009 alone. It now appears
the worst is over as the initial employment
figures for 2010 indicate no change in the
number of jobs during the year. Contraction
is still occurring in construction, financial
services, and government but was offset by
gains in education and health services, pro-
fessional and business services, and trade/
transportation/utilities.
Despite the recent challenges, the outlook
remains positive over the long term. With a
metro population estimated at 5.6 million as
of 2010, the Atlanta MSA is the ninth largest in the nation. By 2020, the Atlanta MSA
population is projected to total 6.6 million,
translating into average annual population
growth of approximately 100,000 per annum over the coming decade.
.PG.
42
ATLANTA REGION
MPF Data
.PG.
43
ATLANTA
Atlanta ranks fifth in the nation among cities with the most
Fortune 500 headquarters (12). Twenty-six companies
headquartered in metro Atlanta are ranked among the latest Fortune 1,000 companies, and more than 70% of all
Fortune 1000 companies have a presence in metro Atlanta.
Additionally, metro Atlanta is home to 25 private companies that have annual revenues of at least $500 Million.
Since 2000, metro Atlanta has averaged a net population
increase of approximately 140,000 per annum. Demographers
expect average annual gains of 100,000 per annum over the
coming years as in-migration declines slightly. As a metro
area with a youthful median age of 33.0 years old, baseline
population growth attributed to natural change (births less
deaths) is estimated at more than 50,000 per annum.
Employment was essentially f lat in 2010 after job losses
totaling 200,000 for the preceding two years. The outlook
for 2011 is one of modest improvement on the employment
front, as a little over 20,000 jobs are expected to be added.
In 2012 and beyond, the pace of job growth is expected to
accelerate and build to over 100,000 in 2013 and 2014.
Atlanta has not escaped unscathed from the difficulties
experienced in the housing industry. Multi-family housing
permits dropped to approximately 1,000 units in 2010, a mere
fraction of the average over the previous decade. Over the
next few years, multi-family additions to the housing supply
are expected to increase slightly from the current level but
remain well below historical levels. Vacancy in the Atlanta
market remains high at 10.5%. Limited construction activity should help vacancy return to lower levels more quickly
as the economic conditions improve.
The Marquis at Briarcliff is located in proximity to
Atlanta’s largest employment centers. Demand for similar
in-town locations is strong as more and more residents seek
to enhance their quality of life by minimizing commuting
time and expense. The construction of new apartments in
the urban core of Atlanta will be limited due to the lack of
available zoned land. Additionally, those apartment communities that are built will be at a much higher cost basis,
due to the high cost of land and construction materials.
Therefore, well-located existing communities such as The
Marquis at Briarcliff should be able to compete effectively
for residents in the coming years.
The North DeKalb submarket includes almost 35,000
apartment units. In 2010, unit deliveries totaled 1,058 units
with absorption of 995 units. As a result, vacancy declined
marginally to 11.0%. Deliveries are expected to decline in
2011, with 353 units currently scheduled for delivery. Absorption is projected to be 367 units in 2010, implying a year-end
vacancy rate of 10.9%. As would be expected with a modest
reduction in vacancy, rents are expected to improve slightly
with a forecasted gain of 1.0%.
.PG.
44
THE MARQUIS AT BRIARCLIFF
THE MARQUIS AT BRIARCLIFF
Earnings Overview
Earnings Overview
Net Rental Income
Other Income
Interest Income
Total Revenues
$
Payroll & Benefits
Turnover Costs
Utilities
Insurance
Property Taxes
Management Expenses
$
Earnings
Year 2011
1,219,031
158,248
12
$1,377,291
$
$
Cash from / (to) Lender Reserves (Net)
Earnings
Year 2010
$
$
$
$
1,244,134
111,450
0
$1,355,583
(221,381) $
(21,687)
(26,623)
(25,155)
(30,772)
(42,043)
(112,443)
(24,130)
(185,688)
0
(45,219)
(735,139) $
642,152 $
(237,014)
(19,755)
(24,581)
(27,954)
(30,927)
(44,554)
(112,042)
(22,764)
(191,164)
0
(44,568)
(755,323)
600,261
(604,647) $
(37,612)
(88,115)
(87,615)
307,000
14,836
(29,251)
(116,749)
0 $
(525,488)
(33,312)
(115,416)
(30,400)
60,000
7,402
0
36,953
0
0
$
Mortgage Interest
Amortization
$
$
Property Highlights
Earnings
Earnings
Year 2010
Year 2011
642,152 $
(526,424)
(37,612)
(162,638)
(55,655)
(0)
(87,615)
(227,791) $
600,261
(525,488)
(33,312)
(163,728)
(33,985)
0
(30,400)
(186,652)
2010
$
Loan Information
Loan Balance
Lender
as of 12/2010
Briarcliff Lender Group
$ 8,471,604
$
307,000
2011
0.00%
95.70%
1,024 $
0.00%
95.13%
1,053
Interest Rate
Maturity Date
6.19%
9.00%
July, 2013
July, 2013
0
CWS Briarcliff VOT Shoal, LP
CWS Briarcliff Plaza Villas WB, LP
CWS Briarcliff North Bluff WB, LP
CWS Briarcliff Pooles WB, LP
Private Trust *
Private Trust
Private Trust *
2010
2011
2010 Actual
2011 Projected
Projected
Projected
Limited
Limited
Ownership
Taxable
Taxable
Partner
Partner
Percentage
Income
Income
Distributions
Distributions
12.69936%
15.68419%
13.21195%
4.85573%
5.47261%
5.47261%
42.60355%
$
$
(37,704) $
(79,711)
(43,118)
(22,912)
(3,566)
(13,024)
(27,758)
(227,791) $
(32,608) $
(73,417)
(37,816)
(20,963)
(1,255)
(10,827)
(9,767)
(186,652) $
0
0
0
0
0
0
0
0
$
$
Debt Service
35%
Capital
Expenditures
5%
Debt Service
35%
Cash to Reserves
9%
Operating Expenses
46%
Operating Expenses
55%
Non-Operating
5%
.PG.
45
Capital
Expenditures
8%
Non-Operating
2%
0
0
0
0
0
0
0
0
CHARLOTTE
R
E
G
F E A T U R E D
I
O
N
P R O P E R T I E S
The Marquis of Carmel Valley
The Preserve at Ballantyne Commons
The Marquis at Carmel Commons
The Marquis at Northcross*
CWS C
TA
API
RT N
L PA
ERS
.PG.
46
2 010 A N N
UA L
RE P
ORT
MACRO OVE RVIEW
S O U R C E S
Greater Charlotte Chamber of Commerce, Real Estate Center at Texas A&M University,
REIS, Portfolio & Property Research, and U.S. Bureau of Labor Statistics
27
16
521
77
49
74
27
Central Business District
27
Charlotte • The Marquis at Northcross
Charlotte / Douglas
International Airport
74
16
77
Matthews
218
51
521
51
49
Ballantyne
Resort
51
51
77
485
• The Marquis at Carmel Commons
• The Marquis of Carmel Valley
74
521
• The Preserve at Ballantyne Commons
16
The Charlotte MSA experienced growth of
5,000 jobs during 2010, reversing the recent
trend of job losses. More than 73,000 jobs
were lost due to the recession during 2008
and 2009. As multi-family development opportunities have been limited in the economic environment, building permits have
declined to 830 units, the lowest level posted in the last 30 years. With the addition
of 2,048 units to the multi-family market
during 2010 and absorption of 4,001 units,
vacancy dropped to 9.1%, a decline of 2.2%
over the 2009 year-end level. In this improving environment, effective rents climbed by
1.9% during 2010. Moving forward, vacancy is expected to drop further during 2011,
ending the year at approximately 8.2%. Demand for apartments in the Charlotte MSA
is expected to strengthen as the economic
recovery builds. The area’s favorable rental
demographic and the higher costs associated with homeownership in the metro area
bode well for rental demand. Furthermore,
Charlotte will mirror the current national
trend of declining homeownership percentages as more and more households are finding that renting is the best solution for their
housing needs.
.PG.
47
CHARLOTTE REGION
MPF Data
.PG.
48
SOUTHEAST CHARLOTTE
The Carmel submarket, situated in southeast Charlotte, has become the premier location in the Charlotte
MSA during the past decade due to its quality of life,
including the best schools, recreation, shopping, and
dining. The Marquis at Carmel Commons, The Marquis of Carmel Valley, and The Preserve at Ballantyne
are located in this area.
The submarket is anchored by Ballantyne, a 2000acre master planned community designed to offer a
live/work/play lifestyle. Ballantyne Corporate Park has
over three million square feet of office space at this
time and has zoning in place to accommodate an additional two million square feet. Prominent companies
such as SPX Corporation, ESPN, Bank of America,
Lending Tree, and The Equitable Life Assurance
Society have offices in the park.
South Charlotte offers a broad variety of shopping
destinations including SouthPark Mall, Carolina Place
Mall, Ballantyne Village, The Arboretum, Toringdon
Market, and Toringdon Circle. There are also a number
of country clubs in southeast Charlotte, including Ballantyne, Carmel, Quail Hollow, and TPC at Piper Glen.
The Carmel submarket includes almost 13,000
units. Although no units were delivered to the submarket during 2010, absorption for the period totaled
242 units. In 2011, another year of minimal supply is
expected.Absorption is projected to be a modest 38
units for the year. In 2010, the submarket’s vacancy
rate declined by 1.9% to 6.1% at year-end. This level of
vacancy is substantially lower than the 8.2% posted for
the overall Charlotte metro. During 2011, vacancy in
the Carmel submarket is expected to decrease by 0.3%,
resulting in a fourth quarter 2011 vacancy projection
of 5.8%. Given this low vacancy rate in the submarket,
effective rents in the submarket are expected to rise
by 2.8% during 2011.
.PG.
49
THE MARQUIS AT CARME L COMMONS
THE MARQUIS AT CARMEL COMMONS
Earnings Overview
Earnings Overview
Earnings
Earnings
Year 2010
Year 2011
Net Rental Income
Other Income
Interest Income
Total Revenues
$
2,769,732
304,403
834
$3,074,968
Payroll & Benefits
Turnover Costs
Utilities
Insurance
Property Taxes
Management Expenses
$
(347,634) $
(43,316)
(65,350)
(48,082)
(82,113)
(73,316)
(188,079)
(55,541)
(312,929)
0
(96,749)
(1,313,108) $
1,761,860 $
(361,899)
(34,834)
(55,469)
(46,709)
(80,626)
(76,655)
(182,855)
(52,596)
(321,864)
0
(98,046)
(1,311,553)
1,806,659
Reserves (Net)
$
(1,220,013) $
0
(153,043)
(88,092)
0
(1,220,013)
0
(210,163)
(87,404)
0
$
$
$
$
$
2,890,275
227,937
0
$3,118,213
1,464
(168,177)
134,000 $
134,000
$
0
210,920
500,000
Mortgage Interest
Amortization
$
$
Property Highlights
Earnings
Earnings
Year 2010
Year 2011
1,761,860 $
(1,220,013)
0
(733,681)
(170,970)
0
(88,092)
(450,895) $
2010
$
Loan Information
Loan Balance
Lender
as of 12/2010
Nomura Credit & Capital
$ 21,000,000
2011
3.49%
95.22%
780 $
Interest Rate
Maturity Date
5.73%
April, 2014
2010
2011
2010 Actual
2011 Projected
Projected
Limited
Limited
Ownership
Taxable
Taxable
Partner
Partner
Percentage
Income
Income
Distributions
Distributions
29.19859%
12.94658%
42.07460%
15.78023%
$
(129,926) $
(55,661)
(200,087)
(65,222)
(121,615) $
(51,976)
(188,112)
(60,730)
39,126
17,348
56,380
21,146
$
145,993
64,733
210,373
78,901
$
(450,895) $
(422,433) $
134,000
$
500,000
(164,235)
(153,958)
48,380
*** Includes distributions from limited partner interest in all of the above listed partnerships
Distributions
4%
Capital
Expenditures
5%
Distributions
15%
Cash to Reserves
5%
Non-Operating
3%
Operating Expenses
39%
Operating Expenses
43%
.PG.
13.02%
94.73%
817
Projected
LLTX-Carmel Valley IIB, LP ***
Debt Service
40%
1,806,659
(1,220,013)
0
(737,502)
(184,173)
0
(87,404)
(422,433)
500,000
CWS Lamplighter TX-Carmel Valley II, LP
CWS Stonegate Austin-Carmel Valley II, LP
Carmel Valley II, LP
CWS Stonegate Arlington-Carmel Valley II, LP
50
Debt Service
37%
Capital
Expenditures
6%
Non-Operating
3%
180,523
THE MARQUIS OF CARME L VALLEY
THE MARQUIS OF CARMEL VALLEY
Earnings Overview
Earnings Overview
Earnings
Earnings
Year 2010
Year 2011
Net Rental Income
Other Income
Interest Income
Total Revenues
$
3,638,464
424,050
641
$4,063,155
Payroll & Benefits
Turnover Costs
Utilities
Insurance
Property Taxes
Management Expenses
$
(436,665) $
(52,411)
(78,778)
(58,953)
(103,787)
(92,354)
(211,739)
(76,401)
(400,391)
0
(126,995)
(1,638,475) $
2,424,681 $
(439,386)
(40,056)
(86,093)
(56,602)
(95,961)
(96,598)
(208,650)
(71,760)
(411,764)
0
(127,259)
(1,634,129)
2,437,837
Reserves (Net)
$
(1,660,750) $
0
(234,530)
(100,511)
0
(1,660,750)
0
(272,616)
(111,089)
0
(7,110)
(254,780)
167,000 $
0
(113,381)
280,000
$
$
$
$
167,000
$
3,753,876
318,090
0
$4,071,966
$
Mortgage Interest
Amortization
$
$
Property Highlights
Earnings
Earnings
Year 2010
Year 2011
2,424,681 $
(1,660,750)
0
(989,684)
(75,464)
(0)
(100,511)
(401,728) $
2,437,837
(1,660,750)
0
(994,641)
(19,061)
0
(111,089)
(347,704)
2010
$
Loan Information
Loan Balance
Lender
as of 12/2010
Nomura Credit & Capital
$ 28,000,000
2011
2.99%
95.69%
749 $
5.02%
94.58%
781
Interest Rate
Maturity Date
5.85%
March, 2013
280,000
CWS Carmel Valley Assoc, LP
CWS Carmel Valley 97, LP
CWS Stonegate Austin-Carmel Valley 1, LP
2010
2011
2010 Actual
2011 Projected
Projected
Projected
Limited
Limited
Ownership
Taxable
Taxable
Partner
Partner
Percentage
Income
Income
Distributions
Distributions
62.02000%
6.82100%
31.15900%
CWS Carmel Valley 97, LLC ***
$
(314,298) $
(25,181)
(62,250)
(280,792) $
(21,496)
(45,416)
103,573
11,391
52,036
$
173,656
19,099
87,245
$
(401,728) $
(347,704) $
167,000
$
280,000
(4,736)
(4,231)
1,561
*** Includes distributions from limited partner interest in an above listed partnership
Debt Service
42%
Capital
Expenditures
6%
Distributions
4%
Cash to Reserves
6%
Operating Expenses
40%
Non-Operating
2%
Debt Service
40%
Distributions
7%
Operating Expenses
40%
.PG.
51
Capital
Expenditures
7%
Cash to Reserves
3%
Non-Operating
3%
2,617
THE PRE SE RVE AT BALLANTYNE COMMONS
PRESERVE AT BALLANTYNE COMMONS
Earnings Overview
Earnings Overview
Earnings
Earnings
Year 2010
Year 2011
Net Rental Income
Other Income
Interest Income
Total Revenues
$
2,848,530
277,921
185
$3,126,635
Payroll & Benefits
Turnover Costs
Utilities
Insurance
Property Taxes
Management Expenses
$
(322,906) $
(49,136)
(67,750)
(40,283)
(88,958)
(68,791)
(158,411)
(52,827)
(303,500)
0
(97,699)
(1,250,261) $
1,876,375 $
(313,540)
(47,662)
(77,245)
(38,190)
(85,361)
(66,954)
(158,909)
(50,016)
(312,186)
0
(98,341)
(1,248,404)
1,899,622
Reserves (Net)
$
(1,560,135) $
0
(222,701)
(111,666)
0
(1,245,784)
0
(409,061)
(104,761)
0
(6,021)
24,148
0 $
0
(90,017)
50,000
$
$
$
$
0
$
2,932,540
215,486
0
$3,148,026
$
Mortgage Interest
Amortization
$
Property Highlights
1,876,375 $ 1,899,622
(1,278,125)
(1,123,138)
0
0
(659,304)
(666,520)
(31,870)
(35,133)
0
0
(111,666)
(104,761)
(204,591) $
(29,929)
$
Loan Information
Loan Balance
Lender
as of 12/2010
$ 20,891,779
2011
0.00%
95.23%
924 $
Interest Rate
0.74%
94.80%
956
Maturity Date
2010
2011
2010 Actual
2011 Projected
Projected
Projected
Limited
Limited
Ownership
Taxable
Taxable
Partner
Partner
Percentage
Income
Income
Distributions
Distributions
6.34510%
10.73990%
3.89000%
4.92220%
18.91040%
15.61900%
5.32930%
13.04480%
14.28750%
2.98020%
3.93160%
$
$
(10,298) $
(35,343)
(16,769)
(12,983)
(51,118)
(29,375)
996
(21,388)
(47,805)
13,551
5,941
(204,591) $
770 $
(16,609)
(9,983)
(4,397)
(18,131)
(2,130)
10,292
1,368
(22,882)
18,972
12,799
(29,929) $
0
0
0
0
0
0
0
0
0
0
0
0
$
$
3,313
5,608
1,926
2,438
9,365
7,735
2,639
6,460
7,075
1,476
1,966
50,000
Debt Service
40%
Capital
Expenditures
7%
Distributions
2%
Operating Expenses
40%
Earnings
Year 2011
2010
Debt Service
49%
$
Earnings
Year 2010
50,000
CWS Stonegate Arlington-Ballantyne, LP
CWS Lamplighter TX-Ballantyne, LP
CWS Crystal Lake-Ballantyne, LP
CWS Diamond Valley-Ballantyne, LP
CWS Friendly Village-Ballantyne, LP
CWS Palm Valley-Ballantyne, LP
CWS Shadow Hills-Ballantyne, LP
CWS Sunset-Ballantyne, LP
CWS University Winterhaven-Ballantyne, LP
Private Trust *
Private Trust
Non-Operating
4%
Operating Expenses
39%
.PG.
52
Capital
Expenditures
13%
Cash to Reserves
3%
Non-Operating
3%
RALEIGH
R
E
G
F E A T U R E D
I
O
N
P R O P E R T I E S
The Marquis at Preston*
The Marquis at Silverton*
The Marquis on Edwards Mill*
The Marquis on Cary Parkway*
CWS C
TA
API
RT N
L PA
ERS
.PG.
53
2 010 A N N
UA L
RE P
ORT
MACRO OVE RVIEW
S O U R C E S
Greater Raleigh Chamber of Commerce, The Research Triangle Park, Real Estate Center at Texas A&M University,
REIS, U.S. Bureau of Labor Statistics, and Federal Housing Finance Agency
98
Durham
15
1
70
147
50
540
Raleigh-Durham
International
Airport
40
Morrisville
New Hope
• The Marquis
at Silverton
• The Marquis at Preston
55
401
• The Marquis at Edwards Mill
North
Carolina
State
University
• The Marquis on Cary Parkway
440
Raleigh
1
64
401
The Raleigh-Durham-Cary MSA has a diverse employment base consisting primarily
of technology, government, biotechnology,
and education. While the local economy has
been impacted by the recession, it has fared
better than most. After losing approximately
29,000 jobs in 2009, the trend was reversed
as initial indications are that 3,000 jobs were
added in 2010. As of third quarter 2010,
housing prices had declined by 2.4% over the
preceding year, slightly lagging the national
average of 1.2%.
Raleigh is consistently ranked among the
nation’s best places to live and work. Within
the past year, Forbes.com ranked Raleigh as
70
the fastest growing North American city and
the top housing market for investors. Bizjournals rated it as having the best quality of life
and Hanley Wood Market Intelligence rated
it as having the healthiest housing market.
Multi-family units permitted in 2010 were
substantially lower than the 2009 level, dropping to 925 units. As of third quarter 2010,
vacancy was estimated to be 7.1%. The expected vacancy in 2011 virtually level with
2010, as a vacancy rate of 7.2% is projected
for fourth quarter 2011. Vacancy is expected
to decline over the next few years, winding up
at 6.3% as of fourth quarter 2014. Effective
rents are expected to climb 2.6% in 2011.
.PG.
54
RALEIGH REGION
MPF Data
.PG.
55
R
DENVER
E
G
F E A T U R E D
I
O
N
P R O P E R T I E S
The Marquis at Town Centre
Marquis at the Parkway *
CWS C
TA
API
RT N
L PA
ERS
.PG.
56
2 010 A N N
UA L
RE P
ORT
MACRO OVE RVIEW
S O U R C E S
REIS, Broomfield Chamber of Commerce, Denver Business Journal
Broomfield
36
✖ The Marquis at Town Centre
76
Denver
International
Airport
Thornton
Westminster
270
70
Lakewood
6
Denver
470
70
Aurora
✖ Marquis at the Parkway
225
470
25
40
285
Englewood
Denver
Tech Center
Metro Denver has an enviable quality of life
that makes it one of the best places in the
United States to live and work. Denver continues to offer a lifestyle that attracts young,
educated workers and is also home to eight
Fortune 500 companies such as Qwest Communications and Dish Network. In 2010,
employment in Denver was essentially flat
with a nominal contraction of 0.1%. In this
economic environment, demand for rental
housing staged a strong recovery as vacancy dropped from 8.9% at year-end 2009 to
6.4% year-end 2010. Over the same period,
effective rents climbed by 3.8%. With a large
percentage of younger workers (below age
30), a shift away from homeownership, and
construction of new housing units at multi-
decade lows, these three factors resulted in
substantially improved market conditions
during the year. Apartment completions
during 2010 totaled only 2,483 units, a very
modest 1.5% increase in total inventory. In
addition, apartment construction activity is
expected to remain suppressed as only 3,000
units are expected to be delivered between
now and the end of 2012. The Denver apartment market outlook is for above-average
growth in 2011 and 2012, moderating to some
degree thereafter due to the expected return
of apartment construction. However, Denver’s diverse set of economic drivers which include aerospace, energy, technology, biotech,
and environmental research should keep the
local economy growing in the coming years.
.PG.
57
DE NVE R REGION
MPF Data
.PG.
58
BROOMFIE LD
Broomfield’s economy is highly diversified with significant employment in technology, manufacturing,
services, retail and wholesale trade, government, and
construction. High-tech manufacturing accounts for
over half of the jobs in Broomfield/Boulder Counties.
More than 700 firms employ 30,000+ employees in
high-tech research, manufacturing and information
technology services in the northwest quadrant of Metro
Denver. The US 36 corridor and the Interlocken Advanced Technology Environment, a 963-acre business
park, are home to IBM, Sun Microsystems, Ball Corporation, Level 3 Communications, Seagate Technology, Hunter Douglas and Covidien. ConocoPhillips, the
Houston-based energy giant, expects to open 1.6 million
square feet of facilities (more than half of its new cam-
pus) by 2013 in Louisville, CO, which is minutes from
Broomfield. The campus will occupy Conoco’s global
training facilities and new energy research and development center. By 2032, the ConocoPhillips campus could
eventually employ up to 7,000 at the former Storage
Tek campus. The Marquis at Town Centre provides
residents with convenient access to all of these employers
as well as to downtown Denver and Boulder via US 36.
Occupancy rates in the Broomfield submarket were
at 95% as of the end of 2010. There are no new units
currently under construction in the Broomfield/Interlocken submarket. Deliveries of only 150 additional
units are expected through the end of 2012, equating to
a 1.3% expansion of supply. The expectations for effective rent growth are at 2.4% per annum through 2013.
.PG.
59
THE MARQUIS AT TOWN CE NTRE
THE MARQUIS AT TOWN CENTRE
Earnings Overview
Earnings Overview
Earnings
Earnings
Year 2010
Year 2011
Net Rental Income
Other Income
Interest Income
Total Revenues
$
3,180,684
415,047
239
$3,595,971
Payroll & Benefits
Turnover Costs
Utilities
Insurance
Property Taxes
Management Expenses
$
(357,498) $
(71,046)
(40,874)
(52,294)
(68,619)
(81,620)
(239,173)
(55,322)
(217,688)
0
(119,737)
(1,303,870) $
2,292,101 $
(331,572)
(78,395)
(54,461)
(51,488)
(73,308)
(71,861)
(254,723)
(53,460)
(228,539)
0
(122,334)
(1,320,141)
2,367,656
Reserves (Net)
$
(1,630,105) $
(345,091)
(229,274)
(138,225)
81,416
(1,231,875)
(622,831)
(211,308)
(109,156)
0
(343,039)
312,217
0 $
20,847
(213,333)
0
$
$
$
$
0
$
3,348,657
339,140
0
$3,687,797
$
TIG-Town Centre, LP
Tropicana-Town Centre, LP
FVLA-Town Centre, LP
Creekside-Town Centre, LP
Metric-Town Centre, LP
Shadowood-Town Centre, LP
Private Trust*
Mortgage Interest
Amortization
$
$
Property Highlights
Earnings
Earnings
Year 2010
Year 2011
2,292,101 $
(1,630,105)
(345,091)
(945,986)
(50,627)
0
(138,225)
(817,933) $
2,367,656
(1,231,875)
(345,398)
(949,702)
(51,592)
0
(109,156)
(320,067)
2010
$
Loan Information
Loan Balance
Lender
as of 12/2010
Fannie Mae
Town Centre Lender Group 1
Town Centre Lender Group 2
$ 24,300,000
$ 2,215,803
$ 1,016,597
2011
0.00%
94.66%
991 $
Interest Rate
0.00%
94.09%
1,049
Maturity Date
5.00%
August, 2020
11.00% December, 2012
10.00% December, 2012
0
2010
2011
2010 Actual
2011 Projected
Projected
Projected
Limited
Limited
Ownership
Taxable
Taxable
Partner
Partner
Percentage
Income
Income
Distributions
Distributions
3.90505%
3.90505%
2.59133%
38.86024%
23.05870%
24.39020%
3.28943%
$
$
(32,859) $
(32,464)
(20,081)
(442,066)
(96,857)
(197,818)
4,212
(817,933) $
(13,422) $
(13,027)
(7,183)
(248,643)
17,916
(76,418)
20,711
(320,067) $
0
0
0
0
0
0
0
0
$
$
Debt Service
43%
Operating Expenses
43%
Capital
Expenditures
8%
Debt Service
25%
Cash to Reserves
1%
Operating Expenses
54%
Non-Operating
5%
.PG.
60
Capital
Expenditures
9%
Cash to Reserves
8%
Non-Operating
4%
0
0
0
0
0
0
0
0
R
FINANCIAL
CANADA
E
G
F E A T U R E D
I
O
N
SMART
P R O P E R T I E S
GUIDANCE
INVESTING
FOR A
FOR
Breakaway Bays
Crestway Bays
Crispen Bays
TURBULENT
ECONOMY
TODAY’S
LANDSCAPE
CWS C
TA
API
RT N
L PA
ERS
.PG.
61
2 010 A N N
UA L
RE P
ORT
MACRO OVE RVIEW
S O U R C E S
Canadian National and British Columbia, B.C. Stats
1
• Crestway Bays
• Crispen Bays
Delta
15
99A
91
Cloverdale
10
Langley
Surrey
10
99
British Columbia
Semiahmoo Bay
• Breakaway Bays
White Rock
The projected average population growth
for Surrey is estimated at 44,660 for the five
years between 2010 and 2014. While still recovering from a recession, Surrey was home
to $1.2 billion in building permits, with
$804 million of that in residential development. Apartment and townhouse complexes
made up approximately $250 million. The
balance in permit value was in commercial,
industrial and institutional development.
It is estimated Surrey will surpass Vancouver as British Columbia’s most populous city
within two decades. As of June, 2010, population of the City of Surrey is estimated to be
472,000. In 2011, the population is projected to be 481,030. For 2011, the annual real
GDP is forecasted to be +2.1% for British
Columbia. The labor market has improved
by 2% thus creating growth in employment
and wages.
.PG.
62
CANADA MANUFACTURE D
HOUSING COMMUNITIE S
Submarket Discussion (continued)
THE NEIGHBORHOOD
Breakaway Bays – Since December 2009, the area around
Grandview Mall, also referred to as “The Big Box Mall”,
has had concentrated residential development. In excess of 30,000 dwelling units have been constructed,
issued building permits, or approved for development.
Semiahmoo Town Centre, another area of South
Surrey/White Rock has 6,242 dwelling units that have
been constructed, issued building permits, or approved
for development. There is another application for 1,060
dwelling units currently under review.
The Semiahmoo Town Centre which includes one of
the original malls for the area is planning to expand
“up” with commercial and dwelling units since there is
no land available for ground floor expansion.
Due to the boomer generation continuing to downsize, many are looking at condominium living. As an
extension of the Grandview Mall complex, more than
450 condominiums have been constructed above a first
floor of commercial specialty stores. Condominiums
start at $439,000 and go up to $739,000. To date, sales
projections are not being met.
The City of White Rock is located less than two miles
from the US border crossings and 20 miles south of
Vancouver. The historic pier (15,500 ft. long) is a tourist
attraction where you can stroll along while taking in the
view of the Bay, San Juan Islands and majestic Mt. Baker.
In White Rock City one tower of a planned threetower project (22-story complex) has been completed.
Construction of the second and third towers was placed
on hold in 2009 and there is still no activity.
The redevelopment and upgrading of the commercial buildings on White Rocks’ East Beach continues
to progress very slowly.
A former green recycling acreage, Stokes Pit, 15 minutes Northeast of Breakaway Bays, has been partially
redeveloped as a light industrial park. During 2010,
there was minimal to no improvement of occupancy.
Approximately 50% of the units are still vacant.
The City of Surrey is still actively widening main
arteries to improve traffic flow.
Crestway & Crispen Bays – The Towers formerly
known as Infinity Phase 2 have been rebranded as Park
Place by Concord Pacific. A new development group
.PG.
63
took over the project after its previous owners went
bankrupt during the peak of the recession. There will
be no changes to the design. Construction is estimated to be complete by the Fall of 2011. It is unknown
whether Concord will pursue the future phases of what
was the Infinity master plan.
According to economic data from the City of Surrey,
new construction, through December 2010, has created 357,412 sq. ft. of commercial development valued
at $150M and 774,818 sq. ft. of industrial development
valued at $62.9M.
THE RESIDENTIAL HOUSI NG MARKET
In 2010, the Provincial Liberal Government had encouraged development, growth and financial stability within the Province of B.C. Developers have tried
to embrace this attitude. It should be noted that the
British Columbia Government is currently in a state
of turmoil and the leaders of the two major parties,
Liberals and New Democratic have resigned. At this
time both parties are trying to elect new leaders for
the balance of the term.
As developers use up all of the available vacant land,
new development is forced to move towards high rises
and further into the suburban areas. The developers
are encountering resistance whenever they try to expand in the suburban areas from the Agricultural Land
Reserve (ALR), which is a Provincial Government
Agency created to preserve farm land. Farm land is
untouchable with respect to redevelopment potential.
The centralized location of Crispen & Crestway
Bays provides affordable living in an economic zone.
Breakaway Bays is in a suburban area, which provides
an alternative upscale lifestyle for individuals desiring
affordable living.
Work projects funded by various levels of government that were successful in counteracting the financial crisis have been replaced with private construction/redevelopment contracts.
As shown below, the median selling price in 2010
for Surrey reflects a slight increase in prices. Condominium price increase was low due to new projects
that have not sold out.
2008
2010
$ 520,000
$ 510,000
$ 525,000
Townhouse
$ 330,000
$ 316,000
$ 329,000
C ondominiums
$ 210,000
$ 203,000
$ 205,000
MORTG AG E R AT E S
Early in January 2011, the federal government announced changes to Canada’s Mortgage lending rules.
These included moving away from allowing 35-year
amortization to 30-year amortization and 90% loanto-value refinancing to 85% loan-to-value refinancing. Long-term closed mortgage rates (five-year) are
currently 5.19% in 2011 compared to 5.49% in 2010
whereas variable, open rates have changed from 2.25%
in 2010 to 3.70% in 2011. The Bank of Canada rate
changed from 0.25% (May, 2010) to the current 1.00%
(January, 2011).
THE COMPETITION
During 2010, townhouse and condominium building permits totaled 1,775 units. Of those units, 999
were townhouses and 776 were condominiums/apartments. For 2010, the total value of residential building permits was $804.9 million compared to $504.1
million in 2009.
There were no new manufactured home communities built in Surrey in 2010 and as of today, none
are being proposed for 2011. In other areas of British
Columbia approximately five hours from the lower
mainland, a BC manufacturer of manufactured housing has been successful in developing a manufactured
home sub-division of approximately 150 home sites
and plans are in place for a similar manufactured
home sub-division development in the same area.
.PG.
2009
R esidential
64
OP E R AT I O N A L ACT I V I T Y
The consolidated NOI for 2011 is projected to be
$4,136,643. This is a 1.1% increase over the 2010 NOI
of $4,090,351.
The primary operational focus is increasing revenues by maximizing the rental increases and increasing
the occupancy when there is a vacancy in the communities. The B.C. Residential Tenancy Board allows a
maximum site rental increase of 2.3 % plus the increase
of government levies (electric, property taxes, utilities)
for 2009/2010. Our Canadian affiliate, Synergy Service Realty, continues to work in all the communities to
sell both inventory model homes and brokerage homes.
The manufactured home community lifestyle still continues to be both appealing and affordable to buyers.
In 2011, all of the communities will continue to offer
their residents a qualifying referral program. There
are two vacant spaces in Crestway Bays and four vacant spaces in Crispen Bays left in the Canadian portfolio of 656 spaces. The Canadian Communities will
continue to provide value and service to the residents
in addition to maintaining the high standards established by CWS Communities.
The secondary operational focus for 2011 is to continue to control expenses. The cost savings measures
are being achieved through preventative maintenance,
competitive contractor quotes, and closely adhering to
the 2011 budgets.
TH E M A N U FACTU R E D HOU S I NG M A R K ET
Manufactured home shipments to B.C. destinations
from B.C. and other manufacturers are as follows: 356
homes built in B.C. in 2009 and 489 in 2010, 47 homes
built outside of the province in 2009 and 59 in 2010.
The lack of demand for the aging 12’ wide homes is
still an issue. 12’ wide homes made up 55% of the total 656 home sites in the Canadian portfolio in 2010.
Other manufactured housing communities with substantially lower rents, ranging between $517 and $729
per month compete for our customers.
In 2010, the resident-occupied spaces in the CWS
Communities was 650 of 656 home sites (Breakaway ~
one model home, Crestway ~ two model homes & two
vacant home sites, Crispen ~ four vacant home sites).
In February 2011 a new model home is currently being sited in Breakaway Bays.
ASSET MANAGEMENT
The asset management plan for 2011 remains fundamentally identical to 2010. The Canadian team
will continue to search for qualified homes suited for
purchase to fill the remaining vacant home sites in
our communities. Our team will work with prospective residents to pre-sell these homes before they are
sited in the community. The team will also monitor homes that might leave a community and will
present offers to purchase those homes if they are
desirable. Re-saleable homes we purchase may be relocated within our communities, especially if the site
will suit a multi-section home and makes economic
sense. Double-section homes are more appealing to
today’s homebuyers.
For 2011, we will continue to try to attract residents that are being forced to relocate due to redevelopment. We will also be searching for homeowners
wanting to relocate from other manufactured home
communities in the area. Currently in other municipalities, large developers are applying for high density redevelopment permits in a number of existing
manufactured home communities. The Canadian
team is targeting these potential residents to relocate
or upgrade to Crestway or Crispen Bays. The focus
at Breakaway Bays is to continue to site and sell new
homes when a vacant home site becomes available.
.PG.
65
CANADIAN
MOBILE HOMES
HOUSING COMMUNITIE
S
Earnings
Overview
Earnings Overview
& 2011 Earnings Projection in Canadian $'s
Earnings
Earnings
Year 2010
Year 2011
Net Rental Income
Other Income
Interest Income
Total Revenues
$
5,883,346
21,731
0
$5,905,078
Payroll & Benefits
Turnover Costs
Utilities
Insurance
Property Taxes
Management Expenses
$
(445,140) $
(9,032)
0
(39,724)
(169,550)
(87,270)
(573,094)
(54,799)
(243,966)
0
(192,152)
(1,814,726) $
4,090,351 $
(470,850)
(9,769)
0
(39,479)
(214,833)
(89,040)
(612,243)
(54,503)
(256,164)
0
(197,429)
(1,944,310)
4,136,642
Synergy Operations
Reserves (Net)
$
(1,358,167) $
0
(137,032)
(182,431)
66,310
(1,358,160)
0
(129,310)
(194,627)
(59,332)
$
0
(479,031)
2,000,000 $
0
4,787
2,400,000
$
1,000,000
1,200,000
$
$
$
6,058,172
22,781
0
$6,080,952
$
Canadian Mobile Home Communities LLC
Hermitage Oaks of Texas
Irvine Meadows Associates*
Mortgage Interest
Amortization
4,090,351 $ 4,136,642
(1,358,167)
(1,358,160)
0
0
(189,159)
(196,155)
0
0
0
0
(182,431)
(194,627)
$ 2,360,595 $ 2,387,701
2010
Original Investment (ROI)
Average Economic Occupancy
Average Rent per Occupied Unit
$
Loan Information
Loan Balance
Lender
as of 12/2010
Great West Life
Assurance Company
2011
16.18%
99.70%
802 $
Interest Rate
$ 26,350,000
Maturity Date
2010
2011
2010 Actual
2011 Projected
Projected
Limited
Limited
Ownership
Taxable
Taxable
Partner
Partner
Percentage
Income
Income
Distributions
Distributions
37.50780%
16.15200%
46.34020%
$
803,387
375,647
1,181,561
$ 2,360,595
$
810,663
379,674
1,197,364
$
375,078
161,520
463,402
$
450,094
193,824
556,082
$ 2,387,701
$
1,000,000
$
1,200,000
Debt Service
23%
Debt Service
22%
Capital
Expenditures
2%
Distributions
40%
Cash to Reserves
8%
Operating Expenses
32%
Non-Operating
2%
.PG.
19.41%
99.37%
824
Projected
Operating Expenses
31%
Earnings
Year 2011
$
Property Highlights
*Note: Depreciation is not included as depreciable basis is not known
Distributions
34%
Earnings
Year 2010
66
2009 SUPPLEMENTAL REPORT
Capital
Expenditures
2%
Non-Operating
4%

2010 Supplemental - CWS Capital Partners LLC

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