THE MONTROSE PORTFOLIO 8 HOUSTON, TX...Uptown/Montrose area. Montrose has been crowned Houston’s most desirable inner loop neighborhoods with a small town feel. Montrose features

THE MONTROSE PORTFOLIO HOUSTON, TX

98 Units8

2

contacts & offer process

Investment Sales

BRETT [email protected] T 713-337-5800M 210-860-5515

CARTER [email protected] T 713-554-0133M 832-457-7843

ZACH [email protected] T 713-425-5428M 713-897-9670

RUSSELL [email protected] T 713-425-5422M 832-541-1499

MATT [email protected] T 713-554-1303M 281-300-1468

DEBT & STRUCTURED FINANCE

ADAM [email protected] 713-425-5433M 713-824-6066

TIP [email protected] 713-337-5810M 832-724-4288

DAVID [email protected] T 713-337-5811M 713-412-9055

PURVESH [email protected] T 713-300-7954M 313-570-5221

exclusive representationNewmark Knight Frank has been exclusively retained to represent the Seller in the disposition of THE MONTROSE 8 PORTFOLIO. All inquiries about the Offering or the Property should be directed to Newmark Knight Frank.

offering processThe Property is being offered on an “All Cash” or “Loan Assumption”basis to qualified purchasers. Prospective purchasers will have the opportunity to visit the Property through scheduled tours with Newmark Knight Frank. Please do not contact the on-site management directly.

offer requirementsOffers should be presented in the form of a non-binding Letter of Intent, and must include at least:

» Asset Pricing » Due Diligence and Closing Time frame » Earnest Money Deposit » Description of Debt/Equity Structure » Qualifications to Close

Purchase terms shall require cash to be paid at closing. Offers should be delivered to the attention of Brett Benton via email.

financingFor parties interested in receiving debt quotes, please contact our Capital Markets team, Adam Allen, Tip Strickland, David Schwarz or Purvesh Gosalia. Newmark Knight Frank facilitates agency, life company, bank, bridge, and mezzanine financing options.

underwritingFor questions regarding the underwriting presented in this offering memorandum please contact Carter Mizell at 713-554-0133 or [email protected].

property toursTo accommodate the Property’s ongoing operations, Newmark Knight Frank requests 24-hour advance notice to schedule a tour.

presented by

offer process

NEWMARK KNIGHT FRANK1700 Post Oak Blvd | 2 BLVD Place, Suite 400Houston, TX 77056 | T 713-599-1800 | F 713-599-1801

3

table of contents

DAVID [email protected] T 713-337-5811M 713-412-9055

PURVESH [email protected] T 713-300-7954M 313-570-5221

NEWMARK KNIGHT FRANK1700 Post Oak Blvd | 2 BLVD Place, Suite 400Houston, TX 77056 | T 713-599-1800 | F 713-599-1801

pages

Executive SummaryInvestment Highlights

4-19pages

Property SummaryProperty Details

20-35pages

Financial AnalysisPro Forma

36-37

pages

Market OverviewRent Comparables

38-39pages

Appendix

40-43

4

executive summary

NKF is pleased to represent the Seller in the disposition of The Montrose 8 Portfolio. With eight assets located in the heart of Montrose, it creates the opportunity for a future buyer to obtain top of the market boutique-style communities in one of Houston’s fastest growing centers. These eight properties have undergone a complete transformation from 2015-2018 and now sit atop the boutique apartment community boasting stainless steel appliances, premier countertops, tile backsplashes, shaker cabinets with pulls, SMART Home Systems, walk-in showers, updated light fixtures, remote controlled ceiling fans, and USB outlets.

The Montrose submarket has experienced vast rent growth over the past several months including 9% over the last 6 months and 21% over the past 3 months, which is the highest of any submarket in the Houston MSA. The submarket is currently ranked the second hottest submarket in Houston by Apartment Data Services, with rents averaging $1.89, just shy of Downtown. Rents in the submarket are currently higher than most submarkets in Houston coupled with rent growth as high as 21%, suggests strong future rent and occupancy fundamentals for the Uptown/Montrose area.

Montrose has been crowned Houston’s most desirable inner loop neighborhoods with a small town feel. Montrose features local cafes, restaurants, icehouses, live music venues along with timeless boutiques, galleries, and antique shops. The Montrose 8 portfolio consists of eight multifamily communities located amongst Westheimer and Montrose Boulevard, two of Houston’s major thoroughfares, which provides excellent walkability as well as transportation to Houston’s major employment centers. The irreplaceable location coupled with outstanding submarket rent growth presents a great opportunity for a future buyer to acquire eight fully renovated boutique communities in one of the hottest submarkets in Houston.

5

Central Business District | 158K Employees

45

richm

ond a

ve

w alabama

dunlavy st

montrose blvd

westheimer rd1423 Kipling

3412 Graustark

3414 Graustark

2008 Colquitt

1717 Norfolk

2043 Sul Ross

shepherd dr

4321 Mt. Vernon

SPUR 527

400 Westmoreland

executive summary

1423 Kipling 3412 Graustark 3414 Graustark 2008 Colquitt 1717 Norfolk 2043 Sul Ross 400 Westmoreland 4321 Mt. Vernon Totals/AvgsUnits 8 8 8 8 20 14 16 16 98YOC 1965 1958 1965 1965 1953 1961 1965 1945 1960Avg SF 800 722 659 950 570 820 678 511 683Market Rents $1,313 $1,444 $1,434 $1,624 $1,334 $1,518 $1,431 $1,283 $1,407Occupancy 100% 100% 100% 100% 95% 100% 100% 100% 99%

Offering All Cash All Cash or Assumption

All Cash or Assumption

All Cash or Assumption All Cash All Cash or

Assumption All Cash All Cash

6

INVESTMENT HIGHLIGHTS area map

Washington Corridor

montroseHome Prices up to $3.2M

midtownHome Prices up to $1.3M

central businessdistrict

158,000 Employees

45

45

10

Richmond Ave

Shepherd Dr

Montrose Blvd

Taft St

Sawyer St

Houston Ave

Westheimer Rd

W Alabama St

Fairview St

W Dallas St

Eman

cipat

ion

Dr

Craw

ford

St

Mai

n St

Fann

in S

t

Loui

siana

St

Elyu

sian

St

Alabama St

Elgin St

McGowen St

Leeland St

Pease St

Harrisburg Blvd

Canal St

Polk St

Rusk St

Prairie St

W Gray St

Allen Pkwy

Waugh D

r

Memorial Dr

metrorailredline

Saint ArnoldBrewing Company

University ofHouston Downtown

DowntownAquarium-Houston

Toyota Center

Randalls

Discovery Green

The MenilCollection Buffalo

Soldiers Museum

Buffalo BayouPark

Eleanor TinsleyPark

Revention Music Center

Hobby Center

Market SquarePark

Wortham Theater

Alley Theatre

HoustonCommunity College

MidtownParkFuture

Whole Foods

BBVA Stadium

River OaksPlaza

WholeFoods

River OaksShopping Center

GreenStreet

Sam HoustonPark

Warehouse LiveGeorge R. Brown

Convention Center

Minute Maid Park

University ofSt. Thomas

Spotts Park

The Washington Corridor | Restaurants - Bars - NightclubsBluefishCoco’sTapsW GrillRebels

Chatter’s Cafe & BistroAbsolve Wine LoungeCounter BurgerThe Glass HouseMax’s Wine Dive

Molina’sCafe LuxorLaurenzo’sAURAPearl Bar

Winston’sWoodrow’s HeightsSoma SushiZoe’s KitchenNinja Ramen

Darwin’s TheoryPorch Swing PubHickory HollowSawyer ParkLes Givral’s Kahve

Ann TaylorChico’sEm & LeeEventsGAPGymboree

J. JillJos. A. BankLuke’s LockerTalbotsBarnes & NobleBath Junkie

AmericasCirca LightingCafe GingerOolong ArtThe Mad PotterCafe Express

La Grigliala MadeleineMacaron by PatissePaula Fridkin DesignsMarble Slab CreameryMia Bridal Couture

River Oaks Shopping Center

Forever 21Hotel AlessandraMain St StudioMcCormick & Schmick’sSalataGuadalajara Del Centro

Cafe BeneIII Forks SteakhouseEsperson GalleryMake (Her) BoutiqueAT&T SportsNetMia Bella Trattoria

House of BluesPete’s Dueling Piano BarLucky StrikeNRGSpencer OgdenEnertia Software

GreenStreet

Little Woodrow’s MidtownGloria’s Latin CuisineWeights + MeasuresMai’sThe Breakfast KlubAxelrad Beer Garden

The DogwoodRicosJINYA Ramen BarLes Givral’sPho Siagon Noodle House13 celsius

Brennan’s of HoustonThein An SandwichesPhil & Derek’s3rd FloorWooster’s GardenHowl at the Moon

Midtown Retail

Lilly & BloomThai CafeLine & LariatRoman’s PizzaBoomtown Coffee Main StThe Honeymoon Cafe & BarThe Pastry War1150 WinesLive Sports Bar & GrillThe Commoner & The Boulevardier

Boots n ShootsThe Moonshiners Southern Table + BarMolly’s PubShay McElroy’s Irish PubChipotle Mexican GrillLone Star Taco CoThe DistrictCafe ExpressFlying Saucer Draught Emporium

Main Street Area Retail

1423 Kipling

3412 Graustark 3414 Graustark

2008 Colquitt

1717 Norfolk

2043 Sul Ross

4321 Mt. Vernon

400 Westmoreland

7

INVESTMENT HIGHLIGHTS

Current ownership has completed extensive interior/exterior renovations and repositioned each property as a Class A+ boutique multifamily community with condo-quality finishes. A new owner will benefit from zero deferred maintenance and the ability to continue pushing rents while maintaining a price point below new development in the area. The significant renovations completed also offer a new owner the ability to convert the units to condominiums.

E X T E N S I V E I N T E R I O R R E N O VA T I O N S C O M P L E T E D - C O N D O - Q U A L I T Y F I N I S H E S

Stainless Steel Appliances

Tile Backsplashes

Entrance/Exit GatesSiding Replacement

Stand-Up Showers

Interior Renovations• Stainless Steel Appliances• Granite/Quartz Countertops• Tile Backsplash• Faux-Wood Flooring Throughout

(including bedrooms)• New Paneled Shaker Cabinets and

Doors• 2’’ Blinds• Stand-Up Showers• Brushed Nickel Plumbing Fixtures• Modern Lighting Package• SMART Home Features• Washer/Dryer Units• Remote Controlled Ceiling Fans

Exterior Renovations• Siding Replacement• Signage• Roof Repairs/Replacement• Boiler Replacement• PVC Plumbing• Copper Wiring• HVAC Systems• Entrance/Exit Gates• Paint

8


Uptown Galleria | 84K Employees

richmond ave

w alabama

montroseup to $3.2M

midtownup to $552K

montrose blvd

Recreated LOGO

river oaksup to $20M

upper kirbyup to $3.2M

610

SPUR 527

Greenway Plaza | 25K EmployeesTHEGALLERIA MALL

RIVER OAKSDISTRICT


1423 Kipling 3412 Graustark3414 Graustark

2008 Colquitt1717 Norfolk

2043 Sul Ross

4321 Mt. Vernon

400 Westmoreland

9


The Montrose submarket has experienced major rent growth over the past several months including 9% over the last 6 months and 21% over the past 3 months, which is the highest of any submarket in the Houston MSAThe Midtown/Montrose submarket is currently ranked the second hottest submarket in Houston by Apartment Data Services, with rents averaging $1.89, just shy of DowntownClass B performance alone has witnessed a steep increase in rents over the past 24 months, totaling a 7% increase since July of 2017Average effective rents for the portfolio are still well below both overall rents for the submarket as well as Class A rentsRents in the submarket are currently higher than most submarkets in Houston coupled with rent growth of 21%, suggests strong future rent and occupancy fundamentals for the Midtown/Montrose area

O U T S TA N D I N G S U B M A R K E T P E R F O R M A N C E

$900

$1,000

$1,100

$1,200

$1,300

$1,400

$1,500

$1,600

$1,700

$1,800

$1,900

80%

82%

84%

86%

88%

90%

92%

Montrose/Museum/Midtown Overall Submarket Performance

Occupancy Overall Effective Rent Class A Effective Rent Class B Effective Rent Portfolio Average

M O N T R O S E / M U S E U M / M I D T O W N O V E R A L L S U B M A R K E T P E R F O R M A N C E

O V E R A L L R E N T G R O W T H T R E N D S

Last 3 months

+21.0%Last 6 months

+9.4%Last 12 months

+1.5%

10


Texas Medical Center | 110K Employees

HERMANN PARK/HOUSTON ZOO

university placeup to $4.3M

west universityup to $6.5M

SPUR 527

Greenway Plaza | 25K Employees

montroseup to $3.2M

midtownup to $552K

1423 Kipling

3412 Graustark3414 Graustark

2008 Colquitt1717 Norfolk

2043 Sul Ross4321 Mt. Vernon

400 Westmoreland

westheimer rd

bagb

y


braz

os

11

area HIGHLIGHTS

610

610

45

10

610

45

GREENWAY PLAZA25K employees

TEXAS MEDICAL CENTER110K employees

UPTOWN | GALLERIA84K employees

CENTRAL BUSINESS DISTRICT158K employees

5 MILES

ENERGY CORRIDOR94K employees

WESTCHASE DISTRICT93K employees

MEMORIAL CITY48K employees

montrose

How longis the drive?

TOCentral Business District

Texas Medical CenterGreenway PlazaUptown/Galleria

# of Minutes< 10< 10< 10< 15

The Montrose Portfolio

8

uptown/galleria

texas medical centercentral business district greenway plaza

employment centers

I M M E D I A T E LY A C C E S S I B L E T O H O U S T O N ’ S I N F I L L E M P L O Y M E N T C E N T E R S

12

area HIGHLIGHTS employment centers

Galleria/Uptown District

84,000+ EMPLOYEES

2,000COMPANIES

28M SF OF CLASS A OFFICE

1,000+ STORES

5M SF OF RETAIL

14TH LARGEST BUSINESS DISTRICT

IN NATION

25,000+ EMPLOYEES

10 BUILDINGCOMPLEX

4.25M SF OF CLASS A OFFICE

$5 MILLION IN RENOVATIONS

RECENTLY COMPLETED

$7 BILLION IN EXPANSIONS

MASTER-PLANNED MIXED-USE 52-ACRE SITE PREMIER FRONTAGE ALONG U.S. HIGHWAY 59

Greenway Plaza

110, 000 EMPLOYEES

5, 000 DOCTORS

21 HOSPITALS

50,000 STUDENTS

15,000 NURSES

45.8M SF OF COMMERCIAL

SPACE

5,700RESEARCHERS

7.2M+ VISITORSPER YEAR

LARGEST MEDICAL COMPLEX

IN THE WORLD

$1 BILLION IN RENOVATIONS UNDERWAY

1.3 MILLION SF UNDERCONSTRUCTION


IN NATION

#14

1,345 ACRES


84,000+ EMPLOYEES

2,000COMPANIES


1,000+ STORES

5M SF OF RETAIL


IN NATION

25,000+ EMPLOYEES

10 BUILDINGCOMPLEX



RECENTLY COMPLETED



Greenway Plaza

110, 000 EMPLOYEES

5, 000 DOCTORS

21 HOSPITALS

50,000 STUDENTS

15,000 NURSES


SPACE

5,700RESEARCHERS



IN THE WORLD




IN NATION

#14

1,345 ACRES

GREENWAYPLAZA

Veteran Affairs Hospital

Ben Taub Hospital

MemorialHermannHospital

UT Medical School

Methodist Hospital

Baylor College of MedicineMD Anderson

Cancer Center

CHI St Luke’s Hospital

Texas Children’s Hospital

MD Anderson Cancer Center

ALMEDA ROAD

OLD SPANISH TRAIL

Baylor McNair Campus » World’s largest medical complex » 110,000 Employees - More people than

Exxon, Apple, or Google » 1,345 Acres - TMC is the eighth-largest

business district in the country - right after Philadelphia and Seattle

» 7.2 Million Visits Per Year - More than the populations of Los Angeles, Houston, and San Francisco—combined

» 18 Miles of Public and Private Streets

TEXAS MEDICAL CENTER

» Ten-building complex totaling over 4.25 million square feet of Class A office space

» 25,000 employees » Master-planned mixed-use 52-acre site with premier frontage

along U.S. Highway 59 » $5 million in renovations recently completed

13

area HIGHLIGHTSemployment centers

7

713

12

10

2

9

5

6

11

8

15

16

17

14

1

34

MEDICAL CENTERS

1] Memorial Hermann Hospital

2] UT Medical School

3] Ben Taub Hospital

4] Methodist Hospital

5] Texas Medical Center

6] Baylor College of Medicine

7] MD Anderson Cancer Center

8] CHI-St. Luke’s Hospital

9] Veterans Affairs Hospital

10] Texas Children’s Hospital

11] Baylor McNair Campus

12] Shriners Hospital for Children

13] Texas Orthopedic Hospital

14] The Woman’s Hospital of Texas

15]Kindred Hospital Houston Medical Center

16] Park Plaza Hospital

17]Cornerstone Hospital of Houston Medical Center

TEXAS MEDICAL CENTERMAJOR INSTITUTIONS

TEXAS CHILDREN’S HOSPITAL

• $506 million expansion

• Adding 19 floors to existing tower for new heart center, expanded critical care, and diagnostic and therapeutic services

• Phase I completed in 2018

BAYLOR ST. LUKE’S MCNAIR CAMPUS

• New 1.2-million-square-foot facility

• In various stages of completion, renovation and construction

M.D. ANDERSON ALKEK HOSPITAL

• $293 million expansion added nine floors (478,000 square feet) to existing 755,764-square-foot hospital

• Four floors were completed in 2013, three in 2014, and the last two in 2016

UNIVERSITY OF TEXAS M.D. ANDERSON CANCER CENTER


• Will add 184,000 square feet to the existing building

HOUSTON METHODIST


• Recently completed a 390-bed inpatient tower at the main campus

• Completed in 2018

MEMORIAL HERMANN

• $650 million renovation and expansion

• Building new patient care building and upgrading infrastructure

• Adding 1.3 million square feet in a new space and increasing their size by 50%

• Completed in 2018

RECE

NTLY

COMP

LETE

D | U

NDER

CONS

TRUC

TION

PROJ

ECTS

14

area HIGHLIGHTS employment centers

MINUTE MAID PARKHOUSTON ASTROS

TOYOTA CENTERHOUSTON ROCKETS

1.2M SF GEORGE R. BROWN

CONVENTION CENTER

158,000+ EMPLOYEES

9 FORTUNE

500COMPANIES

49M SFCLASS A OFFICE

EMPLOYER # CBD EMPLOYEES 1] City of Houston 10,000 2] Chevron 8,000 3] Deloitte LLP 1,960 4] Houston Community College 1,853 5] Kinder Morgan 1,850 6] CenterPoint Energy 1,803 7] Accenture 1,800 8] Ernst & Young 1,738 9] Pricewaterhouse Coopers 1,66410] St Josephs Medical Center 1,46711] Enterprise Products Partners 1,38612] University of Houston Downtown 1,34113] United Airlines 1,25014] KPMG 1,24415] LyondellBasell 1,00216] EOG Resources 90017] NRG Energy 87818] Enbridge Energy 50019] Hilton America’s Houston 80020] Trans Canada Corp 65021] Wells Fargo Bank 61822] Vinson & Elkins 61623] PROS Holdings 55024] Norton Rose Fulbright 524

CENTRAL BUSINESS DISTRICT

MAJOR EMPLOYERS

» 150,000 employees | 9 Fortune 500 companies

» Major employers (number of employees) include Chevron (8,000), Chase Bank (4,695), KBR (3,175), ExxonMobil Corporation (3,000), Deloitte (1,960), Kinder Morgan (1,850), CenterPoint Energy (1,803), Hess Corporation (1,870), United Airlines (1,840), Accenture (1,800) and Wells Fargo (1,695)

» Home to Minute Maid Park (Houston Astros) and Toyota Center (Houston Rockets)

» Contains 1.2 million square foot George R. Brown Convention Center

CENTRAL BUSINESS DISTRICT

15


12

20

14

22

713

10

2

9 5

611

17

15

8

19

24

1

163

4

21 18

23

EMPLOYER

1] City of Houston

2] Chevron

3] Deloitte LLP

4] Houston Community College

5] Kinder Morgan

6] CenterPoint Energy

7] Accenture

8] Ernst & Young

9] Pricewaterhouse Coopers

10] St Josephs Medical Center

11] Enterprise Products Partners

12] University of Houston Downtown

13] United Airlines

14] KPMG

15] LyondellBasell

16] EOG Resources

17] NRG Energy

18] Enbridge Energy

19] Hilton America’s Houston

20] Trans Canada Corp

21] Wells Fargo Bank

22] Vinson & Elkins

23] PROS Holdings

24] Norton Rose Fulbrightsource: Houston Business Journal

CENTRAL BUSINESS DISTRICTMAJOR EMPLOYERS

16

employment centersarea HIGHLIGHTS


84,000+ EMPLOYEES

2,000COMPANIES


1,000+ STORES

5M SF OF RETAIL


IN NATION

25,000+ EMPLOYEES

10 BUILDINGCOMPLEX



RECENTLY COMPLETED



Greenway Plaza

110, 000 EMPLOYEES

5, 000 DOCTORS

21 HOSPITALS

50,000 STUDENTS

15,000 NURSES


SPACE

5,700RESEARCHERS



IN THE WORLD




IN NATION

#14

1,345 ACRES

» 14th largest business district in the US

» 84,000 employees

» Five million square feet of retail space and more than 1,000 stores

» The Galleria hosts 30 million visitors annually, making it the number one shopping and tourist attraction in Houston

UPTOWN | GALLERIABUSINESS DISTRICT

17


EMPLOYER1] Galleria Office Towers

2] Williams Tower Williams Companies, Rowan Companies, Quanta Services

3] Bechtel Oil, Gas & Chemicals4] Amegy Bank HQ5] Silicus Technologies, LLC6] AECOM7] BBVA Compass Plaza

8] Four Oaks Plaza Morgan Stanley, SureTec, Main Street Capital

9] 1400 Post Oak Ln Select Energy, JLL

10] Transwestern

11] 1800 West Loop South Blue Cross Blue Shield of Texas, Pierpont Communications, Anheuser-Busch

12] BLVD Place Frost Bank, Cantor Fitzgerald, ARA Newmark

13] Landry’s Inc14] BHP Billiton Petroleum15] Marathon Oil

16] 5151 San Felipe Goodman Manufacturing Company, Columbia Pipeline Group

17] Post Oak Central Stewart Title Co., Apache Corporation, Engie North America

18] Schlumberger

19] Riverway Office Park Northwestern Mutual, Riverway Title Company, Aly Energy Services

20] San Felipe Plaza Chase, Amerifirst

21] Burns & McDonnel

22] 5718 Westheimer Capital One, DCP Midstream

23] Enbridge

24]Greenway Plaza Occidental Petroleum, Transocean, Chicago Title, Camden, Solvay Chemicals, Invesco, Direct Energy

UPTOWN|GALLERIAMAJOR EMPLOYERS

12

14

8

9

161820

22

23

4

24

7

13

10

2

56

11

17

15

19

1

3

21

18

demographicsarea HIGHLIGHTS

Average Household Income within a 1-mile radius of the Montrose 8 Portfolio is $136K and is projected to grow 9% in 2024 to $147K

• Based on this income, average affordability is $3,777 per month

• This is $2,374 above effective rents of the portfolio, signaling ample room to greatly increase rents

The population within a 3-mile radius of the portfolio grew 30% from 2010-2019 and is projected to continue to see this vast amount of population growth for the next 5 years

S T R O N G S U R R O U N D I N G D E M O G R A P H I C S

1-mile 3-mile 5-mile2019 Total Population $30,797 $204,145 $519,121Population Growth (2010-2019) 22% 30% 23%Average Household Income $135,590 $140,340 $119,862Average Home Value $755,251 $700,530 $605,165Civilian Unemployed (Unemployment Rate) 2.5% 2.5% 3.6%

$135,590household income

1-mile

$140,340household income

3-mile

22%population growth

2010-19

THE MONTROSE PORTFOLIO

8

19

residential listings area highlights

mandell heights$799,000

T O W N H O M E L I S T I N G S

S I N G L E - F A M I LY L I S T I N G S

driscoll street$1,000,000

michigan street$895,000

topaz villas condominiums$1,404,480

mandell place$1,775,000

richwood$1,849,000

winlow place$1,790,000

chaney smith$1,550,00 0

20

property overview 1423 kipling

1 4 2 3 K I P L I N G | H O U S T O N , T X 7 7 0 0 6

Avg SF Current Market Rent

1Bed/1Bath 4 650 $1,150

2Bed/1Bath 4 950 $1,475

1423 Kipling St is a 8 unit apartment complex built in 1965 in the well-established submarket known as Montrose between Westheimer Rd. and W. Alabama, within walking distance to St. Thomas University and Menil Collection. The property is minutes from downtown Houston, The Medical Center, Museum District and River Oaks. The property is in close proximity to major employment centers such as the central business district (downtown), Greenway Plaza, and the Medical Center.The townhouse style boutique apartments were renovated in 2015 with granite counter tops, porcelain tile, central a/c, remote controlled fans, assigned gated parking, secured gated access, brazilian wood siding and SMART home system with live security monitoring in each unit. The property also has an on-site laundry room.

unit mix

property summary

TOTAL NUMBER OF UNITS

8

YEAR OF CONSTRUCTION

1965

LOT SIZE

5,950 sf

YEAR RENOVATED

2015

A L L C A S H

OCCUPANCY (JULY 2019)

100%

21

property overview1423 kipling

STYLE Garden

NUMBER OF BUILDINGS 2 two-story residential buildings

LAUNDRY FACILITY OR W/D INCLUDED Onsite laundry facility

FOUNDATION Concrete post tension slab

EXTERIOR WALLS Stucco, cedar siding

ROOF TYPE Pitched composition shingles

FLOOR COVERING Carpeting, ceramic tile

PAVING Concrete

WIRING Copper

PIPING PVC

OPEN SPACES7

COVERED SPACESN/A

TOTAL7 spaces or 0.87 spaces per unit

Construction Details

PARKING

ELECTRICITY Submetered

WATER/SEWERRUBS

HOT WATER Boiler; 10 year warranty

HVAC Individual climate controlled units

MECHANICAL SYSTEMS

APPLICATION FEE $60

DEPOSITSEqual to one month’s rent

PET FEE$250 one time fee

PET DEPOSIT$250

PET RESTRICTIONS2 pets maximum | Breed restrictions

FEES & DEPOSITS

22

property overview 3412 graustark

3 4 1 2 G R A U S TA R K | H O U S T O N , T X 7 7 0 0 6


1Bed/1Bath 5 675 $1,350

1Bed/1Bath 1 850 $1,400

2Bed/1Bath 2 775 $1,700

3412 Graustark St is an 8 unit apartment complex built in 1958 in the well-established submarket known as Montrose between Westheimer Rd. and W. Alabama, within walking distance to St. Thomas University and Menil Collection. The property is minutes from downtown Houston, The Medical Center, Museum District and River Oaks. The property was recently renovated in 2018 with a complete redesign of the exterior and interior units. The units were renovated down to the studs with updated electrical, plumbing and HVAC systems. Each unit features an open floor plan with wood flooring, quartz countertops, shaker cabinets, SS appliances, washer/dryer in each unit, frameless glass stand-up showers, large closets and remote controlled ceiling fans. SMART Home Systems with live security monitoring were installed into each unit along with USB outlets. Keyless access for each unit and property entrance gate into courtyard.

A L L C A S H O R A S S U M P T I O N

unit mix

property summary


8


1958

LOT SIZE

7,125 sf

YEAR RENOVATED

2018


100%

23

property overview3412 graustark

STYLE Garden

NUMBER OF BUILDINGS 1 two-story residential building

LAUNDRY FACILITY OR W/D INCLUDED W/D included

FOUNDATION Concrete post tension slabs

EXTERIOR WALLS Brick, cedar siding, metal siding


FLOOR COVERING Faux wood plank

PAVING Concrete/asphalt

WIRING Copper

PIPING PVC

OPEN SPACES4

COVERED SPACES4



PARKING


WATER/SEWERRUBS



MECHANICAL SYSTEMS

APPLICATION FEE $60



PET DEPOSIT$250


FEES & DEPOSITS

A L L C A S H O R A S S U M P T I O N loan detailsASSUMABLE FREDDIE MAC SBL LOAN

LOAN AMOUNT: $1,250,000

INTEREST RATE: 4.75%

AMORTIZATION: 30 years

MATURITY: May 2022

24

property overview 3414 graustark

3 4 1 4 G R A U S TA R K | H O U S T O N , T X 7 7 0 0 6


1Bed/1Bath 4 600 $1,350

1Bed/1Bath 1 675 $1,350

1Bed/1Bath 1 700 $1,400

2Bed/1Bath 2 750 $1,663

3414 Graustark St is a 8 unit apartment complex built in 1965 in the well established submarket known as Montrose between Westheimer Rd. and W. Alabama, within walking distance to St. Thomas University and Menil Collection. The property is minutes from downtown Houston, The Medical Center, Museum District and River Oaks. The property is in close proximity to major employment centers such as the central business district (downtown) and museums such as the Menil Collection, Museum of Fine Arts and host of other world-renowned art galleries.The property was recently renovated in 2017 with a complete redesign of the exterior and interior units. The units were renovated down to the studs with updated electrical, plumbing and HVAC systems. Each unit features an open floor plan with wood flooring, quartz countertops, shaker cabinets, SS appliances, washer/dryer in each unit, frameless glass stand-up showers, large closets and remote controlled ceiling fans. SMART Home Systems with live security monitoring were installed into each unit along with USB outlets. Keyless access for each unit and property entrance gate into courtyard.

unit mix

property summary


8


1965

LOT SIZE

6,250 sf

YEAR RENOVATED

2017


100%


25

property overview3414 graustark

STYLE Garden



FOUNDATION Concrete post tension slabs

EXTERIOR WALLS Brick, cedar siding, metal siding


FLOOR COVERING Faux wood plank, ceramic tile

PAVING Concrete/asphalt

WIRING Copper

PIPING PVC


OPEN SPACES3

COVERED SPACES4


PARKING


WATER/SEWERRUBS



MECHANICAL SYSTEMS

APPLICATION FEE $60



PET DEPOSIT$250


FEES & DEPOSITS





MATURITY: May 2022

26

property overview 2008 colquitt

2 0 0 8 C O L Q U I T T | H O U S T O N , T X 7 7 0 0 6


2Bed/1Bath 8 950 $1,624

2008 Colquitt is a vintage 8 unit apartment complex built in 1965 located within the submarket of Montrose between W. Alabama and Richmond Ave, just 5 minutes from downtown Houston, The Medical Center, Museum District and River Oaks. The property was recently renovated in 2017 with a complete redesign of the exterior and interior units. The units were renovated down to the studs with updated electrical, plumbing and HVAC systems. Each unit features an open floor plan with wood flooring, quartz countertops, shaker cabinets, SS appliances, washer/dryer in each unit, frameless glass stand-up showers, large closets and remote controlled ceiling fans. SMART Home Systems with live security monitoring were installed into each unit along with USB outlets. Keyless access for each unit and property entrance gate into courtyard.


unit mix

property summary


8


1965

LOT SIZE

7,500 sf

YEAR RENOVATED

2017


100%

27

property overview2008 colquitt

STYLE Garden




EXTERIOR WALLS Brick, stone, and hardi-plank

ROOF TYPE Modified


PAVING Concrete

WIRING Copper

PIPING PVC


OPEN SPACES7

COVERED SPACESN/A


PARKING


WATER/SEWERRUBS



MECHANICAL SYSTEMS

APPLICATION FEE $60



PET DEPOSIT$250


FEES & DEPOSITS





MATURITY: May 2022

28

property overview 1717 norfolk

1 7 1 7 N O R F O L K | H O U S T O N , T X 7 7 0 9 8


1Bed/1Bath 18 550 $1,332

1Bed/1Bath 2 750 $1,350

1717 Norfolk St is a vintage 20 unit apartment complex built in 1953 located within the submarket of Montrose between Richmond Ave and 59 South Freeway, just 5 minutes from downtown Houston, The Medical Center, Museum District and River Oaks. The property sits on 21,717 SF of land and would be a great future ground up development opportunity.The property was recently renovated in 2018 with a complete redesign of the exterior and interior units. The units were renovated down to the studs with updated electrical, plumbing and HVAC systems. Each unit features an open floor plan with wood flooring, quartz countertops, shaker cabinets, SS appliances, washer/dryer in each unit, frameless glass stand-up showers, large closets and remote controlled ceiling fans. SMART Home Systems with live security monitoring were installed into each unit along with USB outlets. Keyless access for each unit and property entrance gate into courtyard. It backs up to a public park and dog park which makes a great off site amenity for the tenants.

unit mix

property summary


20


1953

LOT SIZE

21,717 sf

YEAR RENOVATED

2018


95%

A L L C A S H

29

property overview1717 norfolk

STYLE Garden



FOUNDATION Concrete post tension slab, pier/beam

EXTERIOR WALLS Brick, hardi-plank

ROOF TYPE Pitched-Modified (2017)


PAVING Concrete

WIRING Copper

PIPING PVC

OPEN SPACES10

COVERED SPACES10



PARKING


WATER/SEWERRUBS



MECHANICAL SYSTEMS

APPLICATION FEE $60



PET DEPOSIT$250


FEES & DEPOSITS

30

property overview 2043 Sul ross

2 0 4 3 S U L R O S S | H O U S T O N , T X 7 7 0 9 8


1Bed/1Bath 1 650 $1,350

1Bed/1Bath 8 700 $1,369

1Bed/1Bath 1 975 $1,850

2Bed/1Bath 3 1,000 $1,767

2Bed/1Bath 1 1,250 $1,800

2043 Sul Ross is a vintage 14 unit apartment complex built in 1961 located within the submarket of Montrose between W. Alabama and Richmond Ave, just 5 minutes from downtown Houston, The Medical Center, Museum District and River Oaks. The property was recently renovated in 2017 with a complete redesign of the exterior and interior units. The units were renovated down to the studs with updated electrical, plumbing and HVAC systems. Each unit features an open floor plan with wood flooring, quartz countertops, shaker cabinets, SS appliances, washer/dryer in each unit, european-style walk-in showers, large closets and remote controlled ceiling fans. SMART Home Systems with live security monitoring were installed into each unit along with USB outlets. Keyless access for each unit and property entrance gate into courtyard.

unit mix

property summary


14


1961

LOT SIZE

12,500 sf

YEAR RENOVATED

2017


100%


31

property overview2043 sul ross

STYLE Garden




EXTERIOR WALLS Brick, hardi-plank, cedar siding

ROOF TYPE Modified


PAVING Concrete

WIRING Copper

PIPING PVC


OPEN SPACES8

COVERED SPACES6


PARKING

ELECTRICITY Master metered

WATER/SEWERRUBS


HVAC Chiller system

MECHANICAL SYSTEMS

APPLICATION FEE $60



PET DEPOSIT$250


FEES & DEPOSITS





MATURITY: May 2022

32

property overview 400 westmoreland

4 0 0 W E S T M O R E L A N D | H O U S T O N , T X 7 7 0 9 8


Studio 2 450 $1,100

1Bed / 1Bath 6 600 $1,350

1Bed / 1Bath 4 650 $1,363

2Bed / 1Bath 3 850 $1,650

3Bed / 2Bath 1 1200 $2,200

400 Westmoreland is a vintage 16 unit apartment complex built in 1965 located in the Historical Westmoreland District within the submarket of Montrose between Westheimer Rd. and W. Alabama, just 3 minutes from downtown Houston, The Medical Center, Museum District and River Oaks..The property was recently renovated in 2017 with a complete redesign of the exterior and interior units. The units were renovated down to the studs with updated electrical, plumbing and HVAC systems. Each unit features an open floor plan with wood flooring, quartz countertops, shaker cabinets, SS appliances, washer/dryer in each unit, european-style walk-in showers, large closets and remote controlled ceiling fans. SMART Home Systems with live security monitoring were installed into each unit along with USB outlets. Keyless access for each unit and property entrance gate into courtyard.

unit mix

property summary


16


1965

LOT SIZE

10,000 sf

YEAR RENOVATED

2017


100%

A L L C A S H

33

property overview400 westmoreland

STYLE Garden




EXTERIOR WALLS Brick, hardi-plank, cedar siding

ROOF TYPE Pitched composition shingles (2015)


PAVING Concrete

WIRING Copper

PIPING PVC

OPEN SPACES8

COVERED SPACES6



PARKING


WATER/SEWERRUBS



MECHANICAL SYSTEMS

APPLICATION FEE $60



PET DEPOSIT$250


FEES & DEPOSITS

34

property overview 4321 mt vernon

4 3 2 1 M T V E R N O N | H O U S T O N , T X 7 7 0 0 6


1Bed/1Bath 2 402 $1,250

1Bed/1Bath 1 505 $1,250

1Bed/1Bath 8 523 $1,283

1Bed/1Bath 2 530 $1,303

1Bed/1Bath 3 543 $1,305

4321 Mt. Vernon is a 16 unit apartment complex built in 1945 in the well-established submarket known as Montrose between Richmond and I-59, within walking distance to St. Thomas University and Menil Collection. The property is minutes from downtown Houston, The Medical Center, Museum District and River Oaks. Located right off Highway 59, it provides tenants excellent access to one of Houston’s largest thoroughfares. The property was recently renovated in 2016 with a complete redesign of the exterior and interior units. The units were renovated down to the studs with updated electrical, plumbing and HVAC systems. Each unit features an open floor plan with wood flooring, quartz countertops, modern cabinets, SS appliances, washer/dryer in each unit, frameless glass stand-up showers, large closets and remote controlled ceiling fans. SMART Home Systems with live security monitoring were installed into each unit along with USB outlets, along with keyless access for each unit.

unit mix

property summary


16


1945

LOT SIZE

10,000 sf

YEAR RENOVATED

2016


100%

A L L C A S H

35

property overview4321 mt vernon

STYLE Garden




EXTERIOR WALLS Brick, cedar siding

ROOF TYPE TPO (2018)


PAVING Concrete

WIRING Copper

PIPING PVC

OPEN SPACES12

COVERED SPACESN/A



PARKING


WATER/SEWERRUBS



MECHANICAL SYSTEMS

APPLICATION FEE $60



PET DEPOSIT$250


FEES & DEPOSITS

36

portfolio pro formafinancial analysis

INCOMEGross Scheduled RentLess: VacancyLess: Collection LossTotal Rental Income

Plus: Utility ReimbursementsPlus: OtherTotal Other IncomeEffective Gross IncomeEXPENSESRepairs and MaintenanceMarketingUtilitiesTotal Variable ExpensesTaxesFranchise TaxInsuranceManagement FeeTotal Operating ExpensesCapital ReservesTotal Expenses

Net Operating Income $1,126,818 $11,498 $16.83

32.57% $544,257 $5,554 $8.130.88% 14,700 150 0.22

31.69% $529,557 $5,404 $7.915.00% 83,554 853 1.252.05% 34,300 350 0.510.33% 5,531 56 0.08

15.41% 257,568 2,628 3.858.89% $148,604 $1,516 $2.223.91% 65,304 666 0.980.29% 4,900 50 0.074.69% 78,400 800 1.17

% of EGI Totals Per Unit Per SF101.12% $1,671,075 $17,052 $24.96

4.22% 69,713 711 1.040.91% 15,099 154 0.233.30% 54,614 557 0.82

% of GSR Totals Per Unit Per SF96.90% $1,601,362 $16,340 $23.920.10% 1,653 17 0.023.00% 49,578 506 0.74

100.00% $1,652,592 $16,863 $24.69% of GSR Totals Per Unit Per SF

PRO FORMA FINANCIAL ANALYSIS

37

underwriting assumptions financial analysis

Gross Scheduled Rent (GSR) – Pro Forma Year 1 GSR is projected at $1,652,592 annually, or $137,716 per month, which is in line with current market rents across the portfolio

Vacancy Loss – In Pro Forma Year 1, the Property is expected to maintain at least a 97% occupancy rate which is in line with market vacancy for similar boutique properties.

Total Rental Income – Total Rental Income equals GPI less Vacancy and Collection Loss. Pro Forma Year 1 totals $1,601,362 annually, or $133,447 per month.

Utility Reimbursements – Utility Reimbursements for Pro Forma Year 1 is projected at $54,614 annually, or $557 per unit. This value is based off actuals from May’19 financials.

Other – Other for Pro Forma Year 1 is projected at $15,099 annually, or $154 per unit. This value is based off May’19 actuals

Effective Gross Income – Effective Gross Income equals Total Rental Income plus Utility Reimbursements and Other Income and is projected at $1,671,075 in Pro Forma Year 1, or $139,256 per month.

I N C O M E E X P E N S E SRepairs and Maintenance – In Pro Forma Year 1, Repairs and Maintenance expenses are projected at $78,400 annually, or $800 per unit, which are in line with surrounding comparable properties and historical Repairs and Maintenance expenses.

Marketing – In Pro Forma Year 1, Marketing expenses are projected at $4,900 annually, or $50 per unit, which are consistent with Marketing expenses at properties of this size.

Utilities – The property has an average Utilities cost for apartment communities of this quality and area. Utilities are based on historical operations. They are projected at $65,304 annually, or $666 per unit.

Real Estate Taxes – CBMJ Montrose Portfolio is located in Harris County. The 2018 property assessment across the eight properties was $9,361,768 and the assessment for 2019 increased to $9,694,072. The Pro Forma Year 1 Tax expense is calculated by growing the 2019 assessed value by 5% and multiplying by the 2019 tax rate (2.5304 per $100). The projected Pro Forma Year 1 taxes are $257,568 or $2,628 per unit.

Franchise Taxes – In Pro Forma Year 1, Franchise Tax is calculated by taking 33.1% of 1% of Effective Gross Income, which equates to $5,531 per year.

Insurance – In Pro Forma Year 1, Insurance expenses are projected at $34,300, or $350 per unit. Insurance expenses vary depending on the coverage and deductible selected by the investor, and whether the Property is included on a single-asset or a blanket policy.

Management Fee – Management Fee is projected to be 5.00% of Effective Gross Income, which equals $83,554 annually, or $853 per unit in Pro Forma Year 1. This is in line with Urban One’s current management fee structure as shown on page 40.

Capital Reserves – The Properties average YOC is 1960. Pro Forma Year 1 Capital Reserves are projected at $14,700 annually, or $150 per unit.

Total Operating Expenses – Total Operating Expenses (including Capital Reserves) in Pro Forma Year 1 are projected to be $544,257 annually, or $5,554 per unit.

Net Operating Income – Pro Forma Year 1 Net Operating Income (after Capital Reserves) is projected at $1,126,818.

38

rent comparablesmarket overview

# Property Address Built # of Units Avg SF Avg Rent Rent PSF1 Mt Vernon Montrose Lofts 2019 42 644 $1,293 $2.01

2 Le Palais 2018 165 902 $2,145 $2.38

3 2030 Portsmouth St 1955 6 400 $1,154 $2.89

4 1901 Whitney St 1952 9 396 $1,126 $2.84

5 1501 Hyde Park Blvd 1956 32 600 $1,309 $2.18

6 1600 River Oaks Blvd 1982 12 600 $1,308 $2.18

1423 Kipling 1965 8 800 $1,279 $1.60

3412 Graustark 1958 8 722 $1,477 $2.05

3414 Graustark 1965 8 659 $1,413 $2.14

2008 Colquitt 1965 8 950 $1,617 $1.70

1717 Norfolk 1953 20 570 $1,333 $2.34

2043 Sul Ross 1961 14 820 $1,469 $1.79

400 Westmoreland 1965 16 678 $1,413 $2.08

4321 Mt. Vernon 1945 16 511 $1,273 $2.49

Comparable Set Average 1980 44 783 $1,815 $2.32

Montrose 8 Portfolio Average 1960 12 683 $1,393 $2.04

39

rent comparables map market overview

montrose

midtown

central businessdistrict

greenwy plaza

45

45

10

Richmond Ave

Kirb

y D

r

Shepherd Dr

Montrose Blvd

Taft St

Sawyer St

Houston Ave

Westheimer Rd

W Alabama St

Fairview St

W Dallas St

Eman

cipat

ion

Dr

Craw

ford

St

Mai

n St

Fann

in S

t

Loui

siana

St

Elyu

sian

St

Alabama St

Elgin St

McGowen St

Leeland St

Pease St

Harrisburg Blvd

Canal St

Polk St

Rusk St

Prairie St

W Gray St

Allen Pkwy

Waugh D

r

Memorial Dr

metrorailredline

1423 Kipling

3412 Graustark 3414 Graustark

2008 Colquitt

1717 Norfolk

2043 Sul Ross

4321 Mt. Vernon

400 Westmoreland

Washington Corridor

1

3

42

5

6

40

49

Property Management

Exclusively Presented By CBMJ Investments and Development

UrbanOne was founded in 2016 and it works alongside Bran Enterprises and CBMJ Investments & Development, LLC in order to manage multifamily properties that have been recently purchased and completely renovated.

The 82 unit portfolio will have daily oversite by UrbanOne Properties (“UrbanOne”). UrbanOne will be responsible for tenant relationships, daily maintenance of each Property, Property operating budgets, tenant charges reconciliation, and net income statements.

UrbanOne operates each property to create a consistent experience of quality, value, and satisfaction for its residents. Its consistent and personal resident focus assures maximum achievable rents for all properties, thus creating maximum achievable values and returns.

- Only manages current owner’s multifamily portfolio- Over 450 units under management in Montrose- Full time property manager, assistant manager, leasing assistant and 4 maintenance staff team- 5% Management Fee (market for these smaller assets are 8% to 12%)

UrbanOne was founded in 2016 and it works alongside Bran Enterprises and CBMJ Investments & Development, LLC in order to manage multifamily properties that have been rcently purchased and completely renovated.

The 98 unit portfolio will have daily oversight by UrbanOne Properties (“UrbanOne”). UrbanOne will be responsible for tenant relatioships, daily maintenance of each Property, Property operating budgets, tenant charges reconciliation, and net income statements.

UrbanOne operates each property to create a consistent experience of quality, value, and satisfaction for its residents. Its consistent and personal resident focus assures maximum achievable rents for all properties, thus creating maximum achievable values and returns.

• Only manages current owner’s multifamily portfolio• Over 450 units under management in Montrose• Full time property manager, assistant manager, leasing assistant, and 4 maintenance staff team• 5% Management Fee (market for these smaller assets are 8% to 12%)

property managementappendix

41

48

Rent Management

Leasing & Marketing

Resident Services

Property Management

Exclusively Presented By CBMJ Investments and Development

property management appendix

42

information on brokerage servicesappendix

TEXAS LAW REQUIRES ALL REAL ESTATE LICENSE HOLDERS TO GIVE THE FOLLOWING INFORMATION ABOUT BROKERAGE SERVICES TO PROSPECTIVE BUYERS, TENANTS, SELLERS AND LANDLORDS.

TYPES OF REAL ESTATE LICENSE HOLDERS: • A BROKER is responsible for all brokerage activities, including acts performed by sales agents sponsored by the

broker.• A SALES AGENT must be sponsored by a broker and works with clients on behalf of the broker.

A BROKER’S MINIMUM DUTIES REQUIRED BY LAW (A client is the person or party that the broker represents):• Put the interests of the client above all others, including the broker’s own interests;• Inform the client of any material information about the property or transaction received by the broker;• Answer the client’s questions and present any offer to or counter-offer from the client; and• Treat all parties to a real estate transaction honestly and fairly.

A LICENSE HOLDER CAN REPRESENT A PARTY IN A REAL ESTATE TRANSACTION:

AS AGENT FOR OWNER (SELLER/LANDLORD): The broker becomes the property owner’s agent through an agreement with the owner, usually in a written listing to sell or property management agreement. An owner’s agent must perform the broker’s minimum duties above and must inform the owner of any material information about the property or transaction known by the agent, including information disclosed to the agent or subagent by the buyer or buyer’s agent.

AS AGENT FOR BUYER/TENANT: The broker becomes the buyer/tenant’s agent by agreeing to represent the buyer, usually through a written representation agreement. A buyer’s agent must perform the broker’s minimum duties above and must inform the buyer of any material information about the property or transaction known by the agent, including information disclosed to the agent by the seller or seller’s agent.

AS AGENT FOR BOTH - INTERMEDIARY: To act as an intermediary between the parties the broker must first obtain the written agreement of each party to the transaction. The written agreement must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker’s obligations as an intermediary. A broker who acts as an intermediary:• Must treat all parties to the transaction impartially and fairly;• May, with the parties’ written consent, appoint a different license holder associated with the broker to each party

(owner and buyer) to communicate with, provide opinions and advice to, and carry out the instructions of each party to the transaction.

• Must not, unless specifically authorized in writing to do so by the party, disclose:• that the owner will accept a price less than the written asking price;• that the buyer/tenant will pay a price greater than the price submitted in a written offer; and• any confidential information or any other information that a party specifically instructs the broker in writing not to

disclose, unless required to do so by law.

AS SUBAGENT: A license holder acts as a subagent when aiding a buyer in a transaction without an agreement to represent the buyer. A subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first.

TO AVOID DISPUTES, ALL AGREEMENTS BETWEEN YOU AND A BROKER SHOULD BE IN WRITING AND CLEARLY ESTABLISH:• The broker’s duties and responsibilities to you, and your obligations under the representation agreement.• Who will pay the broker for services provided to you, when payment will be made and how the payment will be

calculated.

LICENSE HOLDER CONTACT INFORMATION: This notice is being provided for information purposes. It does not create an obligation for you to use the broker’s services. Please acknowledge receipt of this notice below and retain a copy for your records.

Southwest Residential Partners, Inc.

BROKER FIRM NAME

345433

LICENSE NO.

[email protected]

EMAIL

713-425-5430

PHONE

David Oelfke

DESIGNATED BROKER’S NAME

456477

LICENSE NO.

[email protected]

EMAIL

713-425-5405

PHONE

43

disclaimer appendix

Prospective purchasers are hereby advised the Owner (“Owner”) of THE MONTROSE 8 PORTFOLIO (“Property”) is soliciting offers through Newmark Knight Frank, which may be accepted or rejected by the Owner at the Owner’s sole discretion.

Any solicitation of an offer for the Property offered hereunder will be governed by this Offering, as it may be modified or supplemented. Prospective purchasers are advised that as part of the offer process, the Owner will be evaluating several factors including the experience and financial qualifications of the purchasing entity.

The Owner shall have no obligation to accept any offer from any prospective purchaser. The Owner reserves the right to withdraw the Property from consideration at any time prior to final execution of a Purchase Agreement.

This Offering document is furnished to prospective purchasers for the purpose of determining whether to invest in the Property offered hereby. The information contained herein, or any other related information provided by the Owner, may not be reproduced, redistributed or used in whole or in part without the prior written consent of the Owner.

No person has been authorized to give any information or make any representation or warranty, either expressed or implied and, if given or made, such information or representation must not be relied upon.

While the Owner and Newmark Knight Frank have no reason to believe that the information provided herein or in subsequent information updates delivered to potential purchasers hereunder contains any material inaccuracies, neither the Owner nor Newmark Knight Frank nor any of the Owner’s or Newmark Knight Frank’s respective subsidiaries, affiliates, companies, or the officers, directors, employees, agents and representatives of any such entities, etc., make any representations or warranties, expressed or implied, as to the validity, accuracy or completeness of the information provided or to be provided, and nothing herein shall be deemed to constitute a representation, warranty or promise by any such parties as to the future performance of the Property or any other matters set forth herein.

Any obligations to prospective purchasers that the Owner may have with respect to the Property are limited to those expressly set forth in a fully executed Purchase Agreement between the parties. Prospective purchaser’s sole and exclusive rights against the Owner, with respect to this prospective transaction, the Property, or information provided herein or subsequently, shall be limited to those remedies expressly provided in an executed Purchase Agreement, which shall not survive the closing. Further, in no event shall prospective purchasers have any claims against the Owner, Newmark Knight Frank, or any of their respective affiliates for any damages, liability, or causes of action relating to the Purchase Agreement.

Prospective purchasers are not to construe the contents of this Offering or any prior or subsequent information communications from the Owner or any of their respective officers, employees or agents as legal, tax or other advice. Prior to purchasing, prospective purchasers should consult with their own legal counsel and personal and tax advisors to determine the consequences of an investment in the Property and arrive at an independent evaluation of such investment.

No commission or finder’s fee shall be payable to any party by the Owner nor any affiliate or agent thereof in connection with the sale of the Property unless otherwise agreed to by the Owner in writing.

Acquisition of properties such as this offered hereunder involves a high degree of risk and are suitable only for persons and entities of substantial financial means.

CENTRAL - HOUSTON1700 Post Oak Blvd2 BLVD Place, Suite 400Houston, TX 77056T 713-599-1800 | F 713-599-1801

Brett [email protected] T 713-337-5800M 210-860-5515

Carter [email protected] T 713-554-0133M 832-457-7843

Russell [email protected] T 713-425-5422M 832-541-1499

Matt [email protected] T 713-554-1303M 281-300-1468

Zach [email protected] T 713-425-5428M 713-897-9670

Adam [email protected] T 713-425-5433M 713-824-6066

Tip [email protected] 713-337-5810M 832-724-4288

David [email protected] T 713-337-5811M 713-412-9055

Purvesh [email protected] T 713-300-7954M 313-570-5221

INVESTMENT SALES debt & structured finance

More information is available on our website at: http://arausa.listinglab.com/MontroseCBMJ

THE MONTROSE PORTFOLIO 8 HOUSTON, TX...Uptown/Montrose area. Montrose has been crowned Houston’s most desirable inner loop neighborhoods with a small town feel. Montrose features

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