TRAILS OF WOODLAKE.xlsm
Transcription
TRAILS OF WOODLAKE.xlsm
Trails of Woodlake 2222 Westerland Houston, TX 77063 Key Map: 490T RECENT FORECLOSURE FINANCIAL INFORMATION Asking Price: Price / Unit: Price / SF: Seller's Equity $10,000,000 $40,984 $31.29 $10,000,000 Property is condo converted, therefore, the units could be sold off individually PROPERTY INFORMATION Units: Avg Size: 244 1310 1972 Date Built: "E" Mtr/"W" Mtr: Indiv. / Wtr. "RUBS" Roof: Composition / Pitched Land (Acres) Per HCAD: 17.18 319,582 Rentable Sq Ft: PRO FORMA TOTAL COLLECTIONS (Approximately 89% Occupied) Offered "all cash" the buyer is to obtain new financing. ~ "B" Grade Avg-Mth. Coll. Oct 2010 2009 Avg $178,906 $195,321 Property Highlights 1. Offered "all cash" buyer to obtain new financing. 2. "B‐" Grade Property located in a B+ Grade rental market area. 3. The possibility of individual unit sales exists as the property is already condo converted. There are 267 total units of which 23 have been sold to individuals (see page 13 for specific units ). 4. Good upside potential in the rents and collections. 5. Washer and Dryer Connections in all units. 6. Located in the Woodlake area of west Houston. It is approx. 3.2 miles from the Memorial City Mall and the Memorial Hermann Hospital Complex, approximately 2 miles from the Westchase District of Houston, approximately 7 miles to the IH‐10 Energy Corridor as well as an 11 mile commute to downtown Houston. 7. There is an HOA in place which covers the water/sewer, vacant electric and house lights, and common area maintenance, exterior building and common area insurance, gas.( this will need to be verified during due diligence). Please do not visit the property witout an appointment . Property ~ in a B+ market area. The property is condo converted, therefore, the units could be sold off individually. The community is approx. 89% occupied. The Trails of Woodlake apartment community is located in the Woodlake area of west Houston. Its location places its residents within minutes of the Memorial City Shopping Mall, City Centre Shopping and dining, the Energy Corridor, Loop 610, Galleria and multitudes of businesses and dining along the I‐10,Beltway 8 and Hwy 59 corridors. The property is located approximately 1.52 miles inside Beltway 8 in west Houston, approximately 3 miles south of I‐10, 1.5 miles north of Westpark and 1/2 a mile fromPiney Point Rd. The property has good cross‐town access via all the above mention transportation arteries. UNIT MIX (Rents as of October 2010) #Units Type 60 29 25 30 30 41 29 244 1‐1 2‐2 2‐2 2‐2.5 2‐2.5 3‐2.5 3‐2.5 total units Trails of Woodlake Rent Per SF Notes SF/Unit Total SF Rent Total Rent TH TH TH TH 89% 807 1,114 1,154 1,282 1,568 1,690 1,904 1,310 48,420 32,306 28,850 38,460 47,040 69,290 55,216 319,582 $725 $885 $895 $960 $1,105 $1,220 $1,405 $1,001 $43,500 $25,665 $22,375 $28,800 $33,150 $50,020 $40,745 $244,255 $0.90 $0.79 $0.78 $0.75 $0.70 $0.72 $0.74 $0.764 Occ. avg sf total/sf avg rent total rent avg$/sf FP = Fireplace, TH = Townhome, WD = Washer and Dryers Unit Mix Stats 22% 24% By Unit Type 25% 1‐1 2‐2 By Sq. Ft. 25% 12% 29% 2‐2.5 3‐2.5 12% 10% 12% 807 1,568 12% 17% 1,114 1,690 1,154 1,904 1,282 UNIT AMENITIES (Features vary by Individual Floor Plan) Directions from Downtown Houston: Take 59 S., travel 6.8 miles, take the Chimney Rock Rd. exit, travel 0.2 miles, turn right onto Chimney Rock Rd., travel 0.8 miles, turn left onto Westheimer Rd., travel 3.3 miles, turn right onto Westerland Dr., travel 0.2 miles, the property is on the left. Frost Free Refrig., Pantry, Dishwasher, Standard appliance package, Ice Maker, Private Patio/Balcony, Mini‐blinds, Spacious Walk‐In Closets, Personal Outside Storage, Full Size W/D Connections in all units, Wood Burning Fire Place, Built in Book Shelves, Ceramic Tile, Microwave, Self Clean Ovens, Separate Dining Rooms, Eating Bars Page 2 of 17 Good Value Add Potential Trails of Woodlake 2222 Westerland Houston, TX 77063 Recent Foreclosure - there is no current operating data available. The actual data used below is from the prior owner and the current owner does not warrant its accuracy. Physical Information Financial Information Number of Units 244 Avg Unit Size (SF) 1310 Net Rentable Area 319,582 Land Area {Acres} 17.18 Units per Acre 14.2 Date Built 1972 e‐Met Individual w‐Meter Master "RUBS" Roof Style Individual HVAC System Asking Price $10,000,000 Est. Per Unit Price $40,984 Est. Per SF Price $31.29 $2,000 Est. Rehab/Upgrades/Unit $488,000 Total Est. Rehab $10,488,000 Asking Price + Rehab EST. BUYER'S EQUITY REQUIREMENTS Est. Down Pmt. On Ask Price 30% Est. Down Pmt. With Upgrades 33% INCOME $3,000,000 $3,488,000 Estimated New Loan Parameters Lender To Be Determind 5.25% Est. Interest Rate $7,000,000 Est. New Loan Amount: $38,654 Est. Mthly. P & I : $463,851 Yearly Debt Serv: 360 Amortizing (months) : 10 Years Term: $300 Est. Reserve/Unit : 6.63% Est. Loan Constant: The estimated loan parameters are after stabilization of the property Operating Information Curr Mkt Rent {Sep‐10} $244,255 Rents Used on Pro Forma $244,255 Collections {2009 Avg} $195,321 Collections Used {Oct 2010} $178,906 Phy. Occ. 89% Est. Ins per Unit per Yr $400 Property Tax Information 2009 Rate / $100 of Value 2.52370 2010 Tax Assmt $9,500,738 $9,500,738 Post sale Tax Assessment is Estimated at {95%} of the Asking Price Modified Actuals STABILIZED PRO FORMA (1 YR OUT) Income is Oct 2010 annualized Expenses are ACTUAL 2009 except where noted Income is Estimated, Expenses are Pro Forma except where noted. 2,931,060 (29,311) 2,901,749 (205,174) (234,485) 2,462,090 73,200 2,535,290 Current Market Rent with a {0%} Rent Increase which equates to an avg rent of {$1001}/U or {.764}/SF Loss to Lease {1.0% } of Total Street Rent‐Estimated Estimated Gross Potential Income Vacancy Estimated at {7.0%} Credit/Concess/Admin/Other Rental Losses Estimated at {8.0%} 2,076,464 {71%} of Current Rents Total Rental Income {Estimated} 70,407 $289 / Unit / Yr Other Income 2,146,871 $178,906 / Mo Total Income EXPENSE Fixed Expenses Taxes Insurance Total Fixed Expense Modified Actuals Estimated Fixed Expenses Fixed Expenses $239,770 $983 per Unit $32,371 $133 per Unit 2010 Assmt and 2009 Rate $239,770 $983 per Unit Interiors Only $37,000 $152 per Unit 272,141 $1,115 / Unit Utilities Electric $20,715 $0 Gas Expense (Is in the HOA) Trash Exp $0 Water Exp $0 Water Reimbursement (244 Units Only) ($72,053) Total Utilities Other Expenses General & Admin HOA Dues for all units* Advertising/Marketing Repairs & Maintenance Labor Costs Contract Services Management Fees Total Other Expense Total Operating Expense Reserve for Replacement Estimated Total Expense Net Operating Income Utilities $86 per Unit $ per Unit $ per Unit $ per Unit $295 per Unit $244,255 / Mo 1.0% 99.0% 7.0% 8.0% {84%} of Pro Forma Rents $300 / Unit / Yr $211,274 / Mo Pro Forma Assmt. and 2009 Rate Estimated Interiors Only 276,770 $1,134 / Unit Estimated Utilities In the HOA In the HOA In the HOA Water Exp. is in HOA (51,338) $210 / Unit Other Expenses $37,938 $155 per Unit See Notes Below* $632,280 $2,591 per Unit $44,156 $181 per Unit $75,145 $308 per Unit $273,240 $1,120 per Unit $4,878 $20 per Unit $83,940 3.9% $344 per Unit Based on Income above 1,151,577 $4,720 / Unit 1,372,380 $5,625 / Unit $21,000 $0 $0 $0 ($72,053) $86 per Unit $ per Unit $ per Unit $ per Unit $295 per Unit Estimated Other Expenses $36,600 $150 per Unit $632,280 $2,591 per Unit $43,920 $180 per Unit ` $85,400 $350 per Unit $274,500 $1,125 per Unit $6,100 $25 per Unit $88,735 3.50% $364 per U Based on Income above 1,167,535 $4,785 / Unit 1,393,252 $5,710 / Unit 73,200 $300 / Unit 1,445,580 $5,925 / Unit 701,291 $2,874 / Unit In the HOA In the HOA In the HOA Water Exp is in the HOA Dues (51,053) ‐$209 / Unit 73,200 $300 / Unit 1,466,452 $6,010 / Unit 1,068,838 $4,380 / Unit Asking Price / Asking Price + Rehab 10,000,000 10,488,000 Cap Rate Debt Equity Debt Service ( P & I ) Cash Flow before Amoritization Cash on Cash 7.0% $7,000,000 $3,000,000 (463,851) $237,440 7.9% 10.2% $7,000,000 3,488,000 Incl Upgrades (463,851) $604,987 17.3% NOTES ON ACTUALS: Income is Oct 2010 annualized, Expenses are ACTUAL 2009 ,except where noted, *HOA pays for Water/Sewer, Gas, Electric Common Area and Vacants, Grounds Maintenance, Building and Common Area Insurance, and Trash Removal. The expense line items are not shown for these expenses only the amount paid into the HOA that covers them is shown. Items included in the HOA should be verified during due diligence. NOTES ON PRO FORMA: Income is Estimated, Expenses are Pro Forma except where noted. Page 3 of 17 Potential Stabilized Value Trails of Woodlake Property Information Number of Units: Date of Construction: Roofs: 244 1972 0 Approximate Net Rentable Area: Average Unit Size: Current Monthly Market Rent: 319,582 1,310 $244,255 $1,001 / Unit $.764 / SF HVAC System: Metering: Electric Individual Individual Post Rehab Stabilized Rents Used: Est. Rehab Needed : 2009 Rate / $100 of Value $244,255 $1,001 / Unit $.764 / SF $488,000 $2,000 / Unit 2.5237 Water Master "RUBS" 2010 Tax Assmt $9,500,738 89% Post Sale Assessment Used: $9,500,738 Est. Current Occupancy: STABILIZED PRO FORMA Income Current Market Rent with an approximate {0%} Rent Increase (Post Rehab) Gain/(Loss) to Lease 2,931,060 (29,311) 244,255 1% Vacancy, Credit and other Losses Credit/Concess/Admin/Other Rental Losses Estimated at {8.0%} Total Rental Income (205,174) (234,485) 2,462,090 7% 8.0% 84% Total Other Income Total Estimated Gross Annual Income 73,200 $300 / Unit 2,535,290 $211,274 / Mth Expenses Fixed Expenses Property Taxes (taxes are at 2010 Rate and 2009 assessment) Insurance Total Fixed Expenses Management Fee (Pro Forma is Estimated @ {3.50%} Payroll plus Burden Utilities (Water, Electricity) Repairs, Maintenance and Make Ready Marketing Contract Services (Landscaping, Pest Control, Refuse Removal) General and Administrative Costs HOA Dues Estimated Reserve for Replacement 239,770 Pro Forma 37,000 Est. 276,770 88,735 274,500 (51,053) 85,400 43,920 6,100 36,600 632,280 73,200 Total Expenses ~ (average Unit size is {1310} Sq. Ft.) $983 / Unit $152 / Unit $1,134 / Unit $364 / Unit $1,125 / Unit -$209 / Unit $350 / Unit $180 / Unit $25 / Unit $150 / Unit $2,591 / Unit $300 / Unit 1,466,452 $6,010 / Unit $4.59 / SF Estimated Stabilized Net Operating Income $1,068,838 Estimated Potential Value Based on a Stabilized NOI of $1,068,838 Cap Rate 8.25% 8.50% 8.75% Value Generated $53,097 / U $40.54 / SF $12,955,615 $51,535 / U $39.35 / SF $12,574,567 $50,063 / U $38.22 / SF $12,215,294 Page 4 of 17 Internal Rate of Return Analysis Trails of Woodlake UNITS SQ FT Avg Unit Size Original Sales Price (At Asking Price) $ 10,000,000 Rehab @ {$2,000} a Unit $ 488,000 "All In" Cost $ 10,488,000 Yr 1 includes a {0%} Rent Increase MONTHLY Year 1 244 319,582 1310 Year 1 Year 2 Year 4 Year 5 Potential Income Other Income $244,255 $6,100 $2,931,060 $73,200 $3,018,992 $75,396 $3,109,562 $77,658 $3,202,848 $79,988 $3,298,934 $82,387 GROSS INCOME $250,355 $3,004,260 $3,094,388 $3,187,219 $3,282,836 $3,381,321 ($468,970) 16% $2,535,290 ($483,039) 16% $2,611,349 ($497,530) 16% $2,689,690 ($512,456) 16% $2,770,380 ($527,829) 16% $2,853,492 ($1,393,252) $5,710 ($73,200) ($1,435,050) $5,881 ($73,200) ($1,478,101) $6,058 ($73,200) ($1,522,444) $6,240 ($73,200) ($1,568,118) $6,427 ($73,200) ($1,466,452) $6,010 ($1,508,250) $6,181 ($1,551,301) $6,358 ($1,595,644) $6,540 ($1,641,318) $6,727 $1,068,838 $1,103,099 $1,138,388 $1,174,736 $1,212,174 (463,851) $ Amort $604,987 $98,704 $703,691 (463,851) $ Amort $639,248 $104,012 $743,260 (463,851) $ Amort $710,885 $115,501 $826,386 (463,851) Amort $748,323 $121,713 $870,036 INCOME VAC./OTHER LOSSES Rate Used for Vacancy/Other Losses EFFECTIVE GROSS INCOME EXPENSES Operating Expenses Expenses/Unit Reserve for Replacement @ {$300} per unit TOTAL EXPENSES Total Expenses/Unit NET OPERATING INCOME DEBT SERVICE $ ANNUAL CASH FLOW Amortization Estimated ANNUAL CASH FLOW INCLUDING AMORTIZATION Year 3 (463,851) $ Amort $674,537 $109,606 $784,143 Debt Service Assumptions Used $10,488,000 "All In" Cost 33% % Down of "All In" Cost $7,000,000 Est. New Loan Amt $3,488,000 CASH EQUITY 5.25% Est. Interest Rate ($463,851) Annual Debt Service 21.31% 22.48% 23.69% 24.94% CASH ON CASH RETURN 20.17% Assumptions taken for this Analysis are; Income was increased at 3% per year from year one and Expenses were increased at 3% per year from year one. Debt Service was calculated using the information in the Debt Service box above. Future Sales Price $14,260,871 Cap 8.50% INVESTMENT AND INTERNAL RATE OF RETURN SUMMARY 5th Year NOI $1,212,174 YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 LEVERAGED Cash Equity Annual Cash Flow (Includes Amortization) Net Proceeds from Sale (96% of the Sales Proceeds) Total Cash Flow Total Discounted Cash In-flow {Rate Used is 9%} ($3,488,000) $0 $0 ($3,488,000) $0 $703,691 0 $703,691 $645,588 $0 $743,260 0 $743,260 $625,587 $0 $784,143 0 $784,143 $605,503 $0 $826,386 0 $826,386 $585,433 $0 $870,036 $6,690,437 $7,560,472 $4,913,788 $0 $1,138,388 0 $1,138,388 $879,045 $0 $1,174,736 0 $1,174,736 $832,213 $0 $1,212,174 $13,690,437 $14,902,611 $9,685,674 5TH YEAR SALE ~ LEVERAGED INTERNAL RATE OF RETURN IS {31.71%} UNLEVERAGED Cash Equity Annual Cash Flow (Without Debt Service) Net Proceeds from Sale (96% of the Sales Proceeds) Total Cash Flow Total Discounted Cash In-flow {Rate Used is 9%} ($10,488,000) $0 $0 ($10,488,000) $0 $1,068,838 0 $1,068,838 $980,586 $0 $1,103,099 0 $1,103,099 $928,457 5TH YEAR SALE ~ UNLEVERAGED INTERNAL RATE OF RETURN IS {15.27%} Discount Rate Used is {9%} Total Discounted Cash Flow (LEVERAGED) Original Investment Total Discounted Cash Flow (UNLEVERAGED) Original Investment $7,375,899 $3,488,000 Leveraged $13,305,974 Unleveraged $10,488,000 Page 5 of 17 Yr. 5 Sales Summary Cash Equity Sales Proceeds 5th Yr Cash Flow $3,488,000 $6,690,437 $870,036 $10,488,000 $13,690,437 $1,212,174 IRR 31.71% 15.27% Trails of Woodlake 2222 Westerland Houston, TX 77063 490T Key Map: STONEY BROOK ~ Stabilized at sale ~ ● Sold Date: ● Avg Sq. Ft. Unit: ● Sales Price: 1203 $5,000,000 ● Price Per Unit: $44,248 ● Price Per SF: $36.77 CONSTITUTION SQ ~ Almost Stabilized at sale ~ ● Sold Date: ● Avg Sq. Ft. Unit: ● Sales Price: Dec‐09 730 $2,700,000 ● Price Per Unit: $34,177 ● Price Per SF: $46.83 FAIRFIELD CREEK ~ Stabilized at sale ~ ● Sold Date: ● Avg Sq. Ft. Unit: ● Sales Price: Jul‐09 781 $27,000,000 ● Price Per Unit: $38,793 ● Price Per SF: $49.68 CRYSTAL FALLS ~ Stabilized at sale ~ ● Sold Date: ● Avg Sq. Ft. Unit: ● Sales Price: <> Jan‐10 Jul‐09 710 $6,500,000 ● Price Per Unit: $39,394 ● Price Per SF: $55.48 CAMDEN WEST OAKS ~ Stabilized at sale ~ ● Sold Date: ● Avg Sq. Ft. Unit: Jun‐09 Apartment Sales Comparables 726 Property Number ● Sales Price: <> $28,000,000 ● Price Per Unit: $41,729 ● Price Per SF: $57.49 LENOX ~ Stabilized at sale ~ ● Sold Date: ● Avg Sq. Ft. Unit: ● Sales Price: Jul‐09 725 $7,700,000 ● Price Per Unit: $46,951 ● Price Per SF: $64.77 Sold STONEY BROOK Jan‐10 Stabilized CONSTITUTION SQ Dec‐09 Almost Stabilized FAIRFIELD CREEK Jul‐09 Stabilized CRYSTAL FALLS Jul‐09 Stabilized CAMDEN WEST OAKS Jun‐09 Stabilized LENOX Jul‐09 Stabilized Ttl/Average Comps Trails of Woodlake Page 6 of 17 Total SF Avg/SF Price Pr./U Blt. #/U 135,972 1,203 $5,000,000 $44,248 $36.77 1972 113 57,651 730 $2,700,000 $34,177 $46.83 1972 79 543,516 781 $27,000,000 $38,793 $49.68 1982 696 117,154 710 $6,500,000 $39,394 $55.48 1984 165 487,036 726 $28,000,000 $41,729 $57.49 1982 671 118,880 725 $7,700,000 $46,951 $64.77 1972 164 $12,816,667 $40,882 $50.32 1977 315 $10,000,000 $31.29 1972 244 812 319,582 1,310 $40,984 Pr./SF Competitive Properties within a 1 mile radius Address Project Dist From Subj. Yr. Built Units SF/Unit 1 0.1 0.8 0.4 0.9 0.4 0.8 0.9 0.6 0.4 1978 1973 1978 1976 1977 1972 1974 1968 1977 1973 1975 258 564 142 131 240 222 144 504 270 511 2986 244 14340 233982 895 826 967 1093 880 1035 923 832 935 1203 959 1310 818 838 Madison Park of Westchase 9851 Meadowglen 9545 Ella Lee Ln Park at Woodlake, The 2901 Elmside Pathway, The Quadrangle of Woodlake, The 2021 S Gessner 3030 Elmside Stonecrossing of Westchase Sunblossom at Woodlake 2200 S. Gessner Victoria Place 8740 Westheimer 2501 Lazy Hollow Dr Westpoint/Creekside Woodchase 2900 S Gessner 9449 Briar Forest Woodlake on the Bayou Rent Comp Ttls / Averages Trails of Woodlake Submarket Averages "B" Properties Houston "B" Market Averages 1972 Rent/Unit Rent/SF $724 $631 $825 $877 $738 $911 $757 $851 $712 $943 $808 $1,001 $633 $682 $0.81 $0.78 $0.86 $0.82 $0.85 $0.89 $0.82 $1.03 $0.77 $0.80 $0.84 $0.76 $0.79 $0.83 Occ.. 95.00% 87.00% 93.60% 85.00% 91.00% 87.00% 89.60% 91.00% 87.00% 94.00% 90.02% 89.00% 82.42% 87.10% $682 $633 Houston "B" Market Averages Submarket Averages "B" Properties Rent Comp Averages $808 SUBJECT Trials of Woodlake Woodlake on the Bayou Sunblossom at Woodlake Quadrangle of Woodlake, The Westpoint/Creekside Pathway, The Victoria Place Stonecrossing of Westchase Madison Park of Westchase Woodchase Park at Woodlake, The $1,001 $943 $911 $877 $851 $825 Rent Comparison Chart {Rent / Unit} $757 $738 $724 $712 $631 $0 $200 $400 $600 $800 $1,200 $0.83 $0.79 $0.84 Houston "B" Market Averages Submarket Averages "B" Properties Rent Comp Averages $1.03 Westpoint/Creekside Sunblossom at Woodlake Pathway, The Stonecrossing of Westchase Victoria Place Quadrangle of Woodlake, The Madison Park of Westchase Woodlake on the Bayou Park at Woodlake, The Woodchase Trials of Woodlake $0.10 $1,000 $0.89 $0.86 $0.85 $0.82 $0.82 $0.81 $0.80 $0.78 $0.77 $0.76 SUBJECT $0.20 $0.30 $0.40 $0.50 $0.60 Page 7 of 17 $0.70 $0.80 $0.90 $1.00 Rent Comparison Chart {Rent / SF} PROPERTY AMENITIES Trails of Woodlake 2222 Westerland Houston, TX 77063 Key Map: 490T Property Amenities ~ Social Activities, Park & Ride Nearby, Playground, School Bus Pick‐up, Laundry Room, Perimeter Fence, Fitness Center, Club House, 3 Pools, Gated Community with Controlled Access Gates, Near I‐10 Energy Corridor, the Katy Freeway (IH‐10), Beltway 8, Hwy 59, Many TH Units, Assigned Covered Parking, Major employment areas in close proximity as well as dining and shopping. Good Upside Potential with Stabilization PROPERTY TAX INFOR. HCAD NO. Numerous Cad #'s Rate/$100 Taxing Authority 0.61967 Harris County 0.63875 City Of Houston 0.01636 Port of Houston Authority Houston Community Coll 0.09222 1.15670 Houston ISD 2009 Rate / $100 of Value 2010 Tax Assmt 2010 Approx. Total Tax AREA INFORMATION $2.5237 $9,500,738 $239,770 CONSTRUCTION Age: Elec Meter: HVAC: Water Meter: Access Gates: Roof: Copper Wiring: 1972 Hardi Plank/Brick/Stucco Materials: Individual 2&3 # of Stories: Individual Open / Covered / Parking Garage Parking: Master "RUBS" 34 # Buildings: Yes Composition / Pitched Units/Acre: 14.20 AERIAL ~ Trails of Woodlake Trails of Woodlake is conveniently located on Westerland between Piney Point Rd and S. Gessner in the desirable Woodlake area of Greater West Houston. It is roughly bordered by IH‐10 to the north, Beltway 8 to the west, IH 59 to the south and 610 Loop to the east. The area has excellent cross town access via all the above mentioned major transportation arteries. Greater West Houston, an area of approximately 1000 square miles in Houston's western suburbs, is one of Texas fastest growing communities. It is characterized by large master planned suburban communities and more urban‐styled living environments. Greater West Houston is a burgeoning population and job growth region centered on 3 key regional activity centers‐‐Memorial City, Energy Corridor and Westchase. Major retailing centers are Katy Mills Mall, Town & Country Village, City Centre, Memorial City Mall and Willowbrook Mall. Population of Greater West Houston in 2005 was 1.16 million and employment was 521,000 according to the Houston Galveston Regional Council. By 2035, population will reach 1.83 and employment will reach 770,000. I‐10 Energy Corridor ~ approx. 7 miles northwest of the property, Strategically located along IH 10 midway between Beltway 8 and the Grand Parkway, the Energy Corridor is home to multi‐national and local growth‐oriented companies. This corridor consists of a broad range of companies, from energy to healthcare, engineering, and financial services. Currently, the Energy Corridor is the fourth largest employment center in the region with more than 73,000 employees. City Centre ~ approx. 3 miles northwest of the property, Houston's hip new Mecca for hot retail, upscale dining, luxurious living and much more. This exciting new 37 acre mixed‐use urban development, conveniently located in West Houston at I‐ 10W and Beltway 8 in the Memorial Villages area, is destined to become one of Houston's iconic centers. The Westchase District ~ approximately 2 miles southwest of the property, covers 4.2 square miles (2,700 acres) and is one of Houston's premier business addresses. The District employs more than 56,000 people. 2009 DEMOGRAPHICS - Geography - 3 Mile Radius Estimated Population 2010 1 Mile Radius - 19,592 3 Mile Radius - 179,611 Black, 11.8% Asian, 11.2% 2010 Housing Units Total Housing Units: 97,103 28,880 Occupied: 83,799 24,605 Owner Occupied: 26,023 13,920 Renter Occupied: 57,776 10,685 Vacant Units: 13,304 4,275 Estimated Average Income 1 Mile Radius Avg. Income Subject: $96,364 Other, 12.0% Ethnicity within a 3 Mile Radius Multi-Race, 4.3% White, 60.8% Page 8 of 17 Avg Income 3 MileHouston: Radius -$66,921 $89,697 Avg. Income Avg Income Houston - $71,127 2010 Est. Hispanic Ethnicity 3 Mile Radius Of Hispanic Ethnicity 37% Not Hispanic 63% Trails of Woodlake 2222 Westerland Houston, TX 77063 490T Key Map: Area and Regional Economic Information Houston and Its Economy: According to Forbes Magazine, Joel Kotkin, distinguished in urban futures at Chapman University, states that, if you want to see successful 21st‐century urbanism, go to Houston and the Lone Star State. Houston added 141,000 residents, more than any region in the U.S. save the city's similarly sprawling rival, Dallas‐Fort Worth. Over the past decade Houston's population has grown by 24%‐‐ five times the rate of San Francisco, Boston and New York. In that time it has attracted 244,000 new residents from other parts of the U.S., while older cities experienced high rates of out‐migration. It is even catching up on foreign immigration, enjoying a rate comparable with New York's and roughly 50% higher than that of Boston or Chicago. What Houston has that these other cities lack is opportunity. Between 2000 and 2009 Houston's employment grew by 260,000. Greater New York City‐‐with nearly three times the population of Houston‐‐has added only 96,000 jobs. The Chicago area has lost 258,000 jobs, San Francisco lost 217,000, Los Angeles lost 168,000 and Boston lost 100,004. Other large cities talk about jobs, but by keeping taxes, fees and regulatory barriers high they discourage the creation of jobs, at least in the private sector. A business in San Francisco or Los Angeles never knows what bizarre new cost will be imposed by city hall. In New York or Boston you can thrive as a nonprofit executive, high‐end consultant or financier, but if you are the owner of a business that wants to grow you're out of luck. In Houston and the state of Texas these barriers are reduced substantially in favor of small business. The Texas economy is smoking. Since the collapse of the housing bubble Houston has outperformed Sunbelt counterparts like Phoenix, Las Vegas and Los Angeles. A big factor has been that manufacturing, professional services, international trade and technology industries have been the primary drivers of the city's economic growth‐‐rather than construction and speculation. Ironically, this has increased home values. Since 2007 prices of homes in Houston have ticked slightly higher, while those in Las Vegas, Phoenix, Los Angeles and the Bay Area each are down by more than 35%. Houston has considerably expanded its white‐collar workforce. According to the Praxis Strategy Group, Houston's ranks of college‐ educated residents grew 13% between 2005 and 2008. That's about on par with "creative class" capital Portland, Ore. and more than twice the rate for New York, San Francisco or Los Angeles. Houston's biggest advantage is ambition. Texas urbanites are busy constructing new suburban town centers, reviving inner‐city neighborhoods and expanding museums, recreational areas and other amenities. In contrast with recession‐battered places like Phoenix, Houston remains remarkably open to legal migrants from the rest of America and abroad. Trails of Woodlake is located in the Woodlake area of west Houston. The neighborhood is boarded by Briar Forest Dr. to the north, Westheimer Rd. to the south, Piney Point Rd to the east and Gessner to the west. The area of Piney Point Village borders the property to the east and the Briarforest area borders the property to the west, Bunker Hill Village is to the north and Weschase District is to the south. The Woodlake area has many established and well known neighborhoods with home prices ranging from $200,000 to well in excess of $1,000,000. The Memorial Hermann Memorial City Medical Center (located across from Memorial City Mall) and Memorial City Mall are two major employers in the area. Small to medium manufacturing facilities predominate with retail, restaurant and the service industries provide other employment. The area is very convenient to major employment centers in Houston such as the Galleria, the Downtown Business District, Greenway Plaza, the Westchase Business District, the I‐10 business and Energy Corridor, City Centre, and the Memorial Herman and Memorial City Mall complex as well as numerous retail venues up and down IH‐10, Beltway 8, Westheimer and Loop 610. Properties within a three miles radius of the subject are primarily B quality assets built in the '80's. According to O'Connor & Associates, the overall occupancy for the comparable properties in the Woodlake sub‐market is 90.02% and the average rents are reported as $.84 per sq. ft. both of which are above the average for all of the Houston sub‐markets combined. Page 9 of 17 Apartment Market Statistical Overview - Summary SubMarket of Houston: Alief SubMarket of Houston: Alief Nov-2010 Property / Unit Information Total # Projects Total # Units Total # Units 0BR Total # Units 1BR Total # Units 2BR Total # Units 3BR Total # Units 4BR Avg Units per Project Avg SF Total # Units Under Construction Total # Units Proposed A 4 1,182 N/A 3.00% 2.00% 0.20% N/A 296 917 N/A N/A B 57 14,340 1.70% 32.30% 24.50% 4.50% 0.40% 252 818 N/A N/A C 29 6,927 N/A 12.10% 15.00% 3.90% N/A 239 901 N/A N/A D 2 74 N/A 0.00% 0.20% 0.10% N/A 37 1367 N/A N/A Overall 92 22,523 1.70% 47.40% 41.70% 8.80% 0.40% 245 851 N/A N/A Occupancy Avg Physical Occupancy Avg Pre-Leased Occupancy A B C D 92.44% 93.03% 82.42% 84.56% 85.30% 81.30% 96.68% 93.39% A $1.03 N/A $1.08 $0.97 $1.04 N/A $935 N/A $806 $1,074 $1,464 N/A B $0.79 $0.96 $0.83 $0.75 $0.70 $0.70 $633 $463 $551 $713 $835 $837 C $0.69 N/A $0.74 $0.66 $0.63 N/A $609 N/A $507 $644 $799 N/A D $0.59 N/A $0.75 $0.61 $0.54 N/A $798 N/A $527 $883 $750 N/A Overall $0.77 $0.96 $0.82 $0.73 $0.67 $0.70 $642 $463 $556 $707 $832 $837 A 0 -11 21 B 0 25 239 C 0 3 212 D 0 0 4 Overall 0 18 476 Overall 83.86% 84.07% Rental Rates Avg Market Rent/SF Avg Market Rent/SF 0BR Avg Market Rent/SF 1BR Avg Market Rent/SF 2BR Avg Market Rent/SF 3BR Avg Market Rent/SF 4BR Avg Market Rent/Unit Avg Market Rent/Unit 0BR Avg Market Rent/Unit 1BR Avg Market Rent/Unit 2BR Avg Market Rent/Unit 3BR Avg Market Rent/Unit 4BR Absorption (In Units) Current Month-to-Date Current Quarter-to-Date Year-to-Date Page 10 of 17 Apartment Market Statistical Overview - Summary Houston Rental Market Market(s): Houston Nov-2010 Property / Unit Information Total # Projects Total # Units Total # Units 0BR Total # Units 1BR Total # Units 2BR Total # Units 3BR Total # Units 4BR Avg Units per Project Avg SF Total # Units Under Construction Total # Units Proposed A 588 158,647 0.20% 14.30% 10.30% 1.30% 0.00% 270 954 2,358 2,799 B 1,103 233,982 1.00% 22.40% 17.20% 3.00% 0.30% 212 838 2,346 1,032 C 769 138,730 0.70% 12.40% 11.10% 1.90% 0.10% 180 826 N/A 157 D 152 20,338 0.00% 1.50% 1.90% 0.40% 0.00% 134 905 N/A N/A Overall 2,612 551,697 1.80% 50.60% 40.40% 6.60% 0.50% 211 868 4,704 3,988 Occupancy Avg Physical Occupancy Avg Pre-Leased Occupancy A B C D 91.34% 92.91% 87.10% 89.03% 82.32% 84.19% 83.95% 85.60% 86.99% 88.81% A $1.18 $1.53 $1.23 $1.11 $1.05 $0.98 $1,118 $849 $959 $1,279 $1,485 $1,740 B $0.83 $1.06 $0.88 $0.79 $0.74 $0.64 $682 $483 $595 $761 $883 $856 C $0.72 $0.93 $0.75 $0.69 $0.66 $0.69 $583 $428 $499 $644 $802 $932 D $0.63 $0.83 $0.67 $0.61 $0.57 $0.62 $555 $413 $466 $586 $723 $779 Overall $0.89 $1.04 $0.94 $0.83 $0.77 $0.66 $767 $492 $671 $853 $972 $893 A 0 311 11621 B -2 276 2535 C -2 -150 -559 D 0 14 -35 Overall -5 451 13562 Overall Rental Rates Avg Market Rent/SF Avg Market Rent/SF 0BR Avg Market Rent/SF 1BR Avg Market Rent/SF 2BR Avg Market Rent/SF 3BR Avg Market Rent/SF 4BR Avg Market Rent/Unit Avg Market Rent/Unit 0BR Avg Market Rent/Unit 1BR Avg Market Rent/Unit 2BR Avg Market Rent/Unit 3BR Avg Market Rent/Unit 4BR Absorption (In Units) Current Month-to-Date Current Quarter-to-Date Year-to-Date Page 11 of 17 Trails of Woodlake Page 12 of 17 Trails of Woodlake HOA Dues for the 23 Individually Owned Units *The property has an HOA in place . The management is reponsible for collection of the dues from the individually owned units as well as the 244 units that are for sale. The chart to the right depicts the Mthly dues charged to each individually owned unit. The HOA on the property is reponsible for the water/sewer, vacant electric and house lights, common area maintenance, exterior building and common area insurance and Gas. ( this will need to be verified during due diligence) The management RUBS water/sewer to the other 244 rented units and shows it as an offset to Utilities. Page 13 of 17 * Trails of Woodlake Two Bedroom , Two Bath 1,154 Sq Ft Two Bed, Two and One-Half Bath 1,282 Sq Ft One Bed, One Bath 807 Sq Ft Three Bed, Two and One-Half Bath 1,690 Sq Ft Two Bed, Two and One-Half Bath 1,568 Sq Ft Three Bed, Two and One-Half Bath 1,904 Sq Ft Page 14 of 17 Trails of Woodlake Page 15 of 17 Trails of Woodlake Disclaimer: While the floodplain data that is shown on the map is the same, this map is not an official effective FEMA Flood Insurance Rate Map (FIRM). This map is for informational purposes only. For an official flood zone determination please contact your insurance agent or floodplain administrator. Please visit the FEMA Map Store at http://msc.fema.gov to create a FIRMette which is an official FEMA FIRM. Page 16 of 17 Trails of Woodlake Page 17 of 17