2727 Brazos Lofts

Luxury Apartment Homes

Apartments for Sale

Mark Kalil & Associates Incorporated I www.markkalil.com

2727 Brazos Lofts ● 2727 Brazos Street ● Houston, TX 77006

Asking Price

Units: 25Avg Size: 614Date Built: 2017Rentable Sq. Ft.: 15,340Acreage: 0.34Occupancy 92%Class: A

► High-end, Luxury Construction

► Excellent Freeway Access

► Minutes from Downtown and Memorial Park

► Well Located Just Minutes from the Prestigious

► Possible EB5 candidate

► Ideal to condo convert!

Midtown Houston

FOR MORE INFORMATION PLEASE CONTACT:

Trendy Montrose Area, Upscale River Oaks,

APARTMENTS FOR SALE

2727 Brazos Street, Houston, Texas 77006 Market

INVESTMENT HIGHLIGHTS

2727 Brazos Lofts A P A R T M E N T H O M E S

MARK KALIL Broker/Owner

Mark Kalil & Associates Inc. mark@markkalil.com

713-799-8700

10/20/2017 2727Brazos

2727 Brazos Lofts ● 2727 Brazos Street ● Houston, TX 77006

Asking Price 1st Mortgage @ 70% Est Mkt Rent (Sep-17)Price Per Unit Type: Estimated CollectionsPrice Per Sq. Ft. Debt Service Est Physical Occ (Oct-17)Stabilized NOI Monthly P & I (IO)

Interest Rate

Water Meter RUBS

Flat

PRO-FORMA INCOMECurrent Street Rent with a 2% Increase $35,522 / MoEstimated Gross Scheduled Income $35,522 / MoEstimated Loss to Lease (2% of Total Street Rent) 2%Estimated Vacancy (7% of Total Street Rent)Estimated Concessions and Other Rental Losses (2% of Total Street Rent) 2%Estimated Utilities Income (electricity, water/sewer, & trash)Estimated Other Income $500 / Unit / YrEstimated Total Rental IncomeESTIMATED TOTAL PRO-FORMA INCOME $32,779 / Mo

Estimated Income 2017

Fixed Expenses

Estimated Estimated

$2,099 per Unit $2,975 per Unit

Total Utilities $750 per Unit $750 per Unit

Other ExpensesGeneral & Admin & MarketingRepairs & MaintenanceLabor CostsContract ServicesManagement Fees 2.50% $384 per Unit 3.00% $472 per UnitTotal Other Expense $2,184 per Unit $2,272 per Unit

Total Operating Expense $5,033 per Unit $5,997 per Unit

Reserve for Replacement $300 per Unit $300 per Unit

Total Expense $5,333 per Unit $6,297 per Unit

Stabilized Net Operating Income

Asking PriceCap Rate

Proposed DebtEquityEstimated Debt ServiceCash Flow

Cash on Cash

Physical Information Financial Information Proposed Loan Information Operating Information

Avg Unit Size 614 $32,039Number of Units 25 Market $34,825

Agency92%

Land Area (Acres) 0.34 $235,925 Est Ins per Unit per YrNet Rentable Area 15,340

$350Units per Acre 72.59 Property Tax InformationDate Built 2017 2016 Tax Rate/$100 2.64666

Elec Meter Indiv Est 2017 Taxes $75,1792017 Assessment $2,840,513

INCOME

426,258426,258

HVAC System HVAC-Indiv Est Future Taxes $65,619Roof Style Est FutureTax Assessment $2,479,311

* per unit -; per ft -

(8,525)(29,838) 7%

MODIFIED ACTUALS PRO-FORMA

393,344

(17,050)10,000 $400 / Unit / Yr12,500

$384,468

EXPENSE Estimated Expenses Estimated Future Expenses

Fixed Expenses Estimated Fixed Expenses

393,344

Total Fixed Expense 52,466 74,369Utilities Utilities Estimated Utilities

Insurance $8,750 $350 per Unit $8,750 $350 per UnitTaxes $43,716 $1,749 per Unit 2016 Tax Rate & 2017 Assessment $65,619 $2,625 per Unit 2016 Tax Rate & Future Assessment

$200 per Unit $5,000 $200 per Unit$12,500 $500 per Unit $12,500 $500 per UnitWater & Sewer

18,750

Trash $50 per Unit

Electricity $5,000

18,750

Other Expenses Estimated Other Expenses$6,250 $250 per Unit $6,250 $250 per Unit

$1,250 $1,250 $50 per Unit

$3,750 $150 per Unit $3,750 $150 per Unit$9,612 $11,800

$7,500 $300 per Unit $7,500 $300 per Unit$27,500 $1,100 per Unit $27,500 $1,100 per Unit

133,327 157,419251,141 235,925

Market Market

54,612 56,800

125,827 149,9197,500 7,500

NOTES: ACTUALS: Income and Expenses calculated were Estimated. Taxes were calculated using 2016 Tax Rate & 2017 Assessment. PRO FORMA: Income is Pro Forma as Noted. Taxes were calculated using 2016 Tax Rate & Future Assessment. Insurance is estimated. Management Fees calculated as 3.% of Gross Income, Other expenses are Estimated for the Pro Forma.

DISCLAIMER: The information contained herein has been obtained from sources that we deem reliable. We have no reason to doubt the accuracy of the information, but we have not verified it and make no guaranty, warranty or representation about it. It is your resonsibility toindependently confirm its accuracy and completeness. We have not determined whether the property complies with deed restrictions or any city licensing or ordinances including life safety compliance or if the property lies within a flood plain. THE PROSPECTIVE BUYER SHOULDCAREFULLY VERIFY EACH ITEM OF INCOME OR EXPENSE AND PERFORM OR HAVE PERFORMED ANY INSPECTIONS TO VERIFY POSSIBLE CONTAMINATION BY ASBESTOS, LEAD PAINT, MOLD OR ANY OTHER HAZARDOUS SUBSTANCES. The owner reserves the rightto withdraw this listing or change the price at anytime without notice during the marketing period.

251,141 235,925

2727 Brazos Lofts ● 2727 Brazos Street ● Houston, TX 77006 Property Overview

Age: 2017 Mortgage Balance Houston ISD $1.206700Renovated: N/A Lender Harris County $0.416560Elec Meter: Indiv Amortization Harris County Flood Control $0.028290A/C Type: HVAC P & I Port of Houston Authority $0.013340Water: RUBS Type Harris County Hospital District $0.171790Wiring: Copper Assumable Harris County Education Dept $0.005200Roof: Flat Monthly Escrow Houston Community College $0.100263Paving: Concrete Origination Date City of Houston $0.586420Materials: Masonry Due Date Midtown Mgmt District $0.118100# of Stories: 3 Interest RateBuildings: 1 Yield Maintenance 2016 Tax Rate/$100 $2.646663Parking: Garage Transfer Fee 1%+app+legal 2017 Assessment $2,840,513Units/Acre: 72.59

Estimated Collections 32,039$

Jan 2017Feb 2017Mar 2017Apr 2017May 2017Jun 2017Jul 2017Aug 2017Sep 2017Oct 2017Nov 2017Dec 2017

PLEASE DO NOT VISIT THE SITE WITHOUT AN APPOINTMENT MADE THROUGH THE BROKER.

PROPERTY HIGHLIGHTS

ESTIMATED COLLECTIONS

TAXING AUTHORITY CURRENT MORTGAGEPROPERTY INFORMATION Harris County: 1363360010001

$-

$0

$0

$1

$1

$1

$1

Jan 2

017

Feb 2

017

Mar 2

017

Apr 2

017

May 2

017

Jun 2

017

Jul 2

017

Aug 2

017

Sep 2

017

Oct 2

017

Nov 2

017

Dec 2

017

Disclaimer: The information contained in this Memorandum reflects material from sources deemed to be reliable, including data such as operating statements, rent roll, etc. provided by the Owner. Notwithstanding, Mark Kalil & Associates does not make any warranties about the information contained in this marketing package. Every prospective purchaser should verify the information and rely on his accountants or attorneys for legal and tax advice. This offer is “As-Is, Where-Is”. Answers to specific inquiries will have to be supplied by the Owner and are available upon request. Rates of return vary daily. No representations are made concerning environmental issues, if any.

2727 Brazos Lofts is located near the trendy Montrose area, upscale River Oaks, and Midtown Houston. The property is only minutes away from extraordinary shopping and award winning restaurants such as Uchi, Underbelly, and Anvil to name a few. There is also easy access to universities, museums parks, and hospitals. 2727 Brazos Lofts offers luxurious, contemporary, exclusive floor plans The asset has chic and contemporary studios and one bedroom apartment homes that feature air conditioning, energy efficient appliances, large closets, and washer and dryers. Amenities include a gated community with controlled access and covered parking, designer cabinetry, energy-efficient appliances, granite countertops, washer/dryer connections, wood-type flooring and beautiful views of downtown Houston. The property is ideal for EB5 investors, for a second home in the City, or for possible condo conversion. Per owner the assest was completed in 2017.

2727 Brazos Lofts ● 2727 Brazos Street ● Houston, TX 77006 Unit Mix

Floor Plan Type No. Units Sq Ft Total SqFt Market Rent Total Rent Rent/SF

Flat Studio 5 580 2,900 $1,275 $6,375 $2.20Flat Studio 12 580 6,960 $1,350 $16,200 $2.33Flat 1 Bed/1 Bath 2 685 1,370 $1,350 $2,700 $1.97Flat 1 Bed/1 Bath 2 685 1,370 $1,475 $2,950 $2.15Flat 1 Bed/1 Bath 4 685 2,740 $1,650 $6,600 $2.41

25 614 15,340 $1,393 $34,825 $2.27

*Source: Owner's 9/11/17 Rent Roll

Window Coverings

Wood Type Flooring

Garbage Disposal

Granite Countertops

Microwave

Large Walk-in Closets

Patio or Balcony

Ceiling Fans

Designer Cabinetry

Dishwasher

Electronic Thermostat

Energy-Efficient Appliances

Pet Friendly

APARTMENT AMENITIESCable Ready

Balcony View of Downtown Houston

Covered Parking

Gated with Controlled Access

Midtown Location

SITE AMENITIES

UNIT MIX SEPTEMBER 2017

Total Units Average Sq. Ft.

Total Sq. Feet

Average Rent/Unit

Total Rent

Average Rent/ SFTOTALS AND AVERAGES

17

5

Unit Type

Studio 1 Bed/1 Bath

5

12

2

2

4

Chart Title

Studio Studio 1 Bed/1 Bath 1 Bed/1 Bath 1 Bed/1 Bath

2727 Brazos Lofts ● 2727 Brazos Street ● Houston, TX 77006 Aerial

2727 Brazos Lofts ● 2727 Brazos Street ● Houston, TX 77006

2727 Brazos Lofts ● 2727 Brazos Street ● Houston, TX 77006 Rent Comparables

1

2

3

4

5

Totals/Averages Comps 2016 N/A 77% 272 830 $1,856 $2.24

*Resident Pays E(Electric), W(Water), G(Gas)2727 Brazos Lofts2727 Brazos Street

87% 12,501 926 $1,685 $1.820Houston Market Averages 88% 636,699 882 $999 $1.133

2016

Avg Rent

2.131

+EWG

+EW

+EWG

+EWG

+EW

Rent Comparables (ADS Sept 2017)

Elan Heights 825 Usener St. 2016 82% 326 927 $2,058

Pearl Midtown 3101 Smith St.

Year Renovated

N/A 43% 357 585 1.976$1,156

2016

Year Built Occ #Units

N/A

P/SFProperty Name

Mid Main Lofts 3500 Main St.Pearl at the Mix 2910 Milam St.

Avg SF

2017 92% 25 614 $1,393

94% 196 864 $1,841

Sub Market Averages

2.220

2.307N/A

N/A

Hanover Montrose 3400 Montrose Blvd. 2016 N/A 72% 327 931 $2,371 2.547

2014 96% 154 843 $1,945

$2.27N/A

+EW

5

2727 Brazos

5 1 2 3

2

1

4

3

4

2727 Brazos Lofts ● 2727 Brazos Street ● Houston, TX 77006 Sales Comparables

1

2

3

4

5

Totals/Averages Comps $55,937,000 313,555 $187,492 $185.30 2013 3002727 Brazos Lofts2727 Brazos Street

Built

$45,001,000

Bayou on the Bend 5201 Memorial 05/10/17 $46,000,000 314,275 $190,083 $146.37 2006

398,783 $112.85

Property Name Date Sold Price Total Sq. Ft. Price/SFPrice/Unit

Market 15,340 25

Holden Heights 525 W 24th St. 08/01/16 2015$159,578 282

242

The Connection at Buffalo Pointe 10201 Buffalo Speedway 12/01/16 $52,300,000

09/08/16 $76,384,000

300,058 $148,580 $174.30

Yale at 6th 655 Yale Street

The Muse at the Museum District 1301 Richmond 06/01/17 $60,000,000

2012 352

315,439 $217,000 $242.15 2016 352

2017

239,221 $222,222 $250.81 2014 270

Units

1

2 4 3 5 1

3

2

5

4

2727 Brazos

2727 Brazos Lofts ● 2727 Brazos Street ● Houston, TX 77006 Area Economics

A DECADE ago the concept of living in or near downtown Houston

was exactly that to many observers, a concept, rather than a viable

option. Developers have spent more than $4 billion in the last

decade to transform downtown into a vital city center, bringing a

vast gamut of assets and amenities to downtown and more and

more people are choosing to live in downtown Houston or in the

immediate downtown area. The types of residents attracted to

downtown living are young urban professionals working downtown,

empty nesters, reverse commuters and, yes, even small families,

from penthouse apartments to cool and funky lofts and at all price

points .

Downtown Houston is booming thanks to an unprecedented

amount of public and private investment-- developers have spent

more than $4 billion in the last decade to transform downtown into

a vital city center. Downtown Houston is home to dramatic 20th

Century skyscrapers housing the offices where many of

downtown’s 140,000 workers are employed, a world-class Theater

District, a growing residential population, a popular nightlife scene

centered in the Historic District, new light rail, an enhanced

convention center and numerous new hotels as well as two state-

of-the-art sports facilities that attract millions throughout the year.

The Downtown District is bounded largely by the freeway ring

around Houston’s central business core, including Interstate 10,

Highway 59 and Interstate 45. The Houston Downtown

Management District has facilitated many of the public and private

projects that have transformed downtown over the last decade.

The District began its revitalization efforts in 1995. To accelerate

the renewal of the city's urban core, the District set several

important goals with quality of life as the underlying theme: building

a lasting constituency for downtown; recruiting investors, retailers

and tenants while retaining those already downtown; and making

downtown clean, safe and attractive.

DOWNTOWN HOUSTON QUICK FACTS Since 1996, $4 billion of construction has been completed in over 110 public and private projects

Over 3,800 residents now live downtown, up from only 1,400 in the 1990's

Almost 150 restaurants and clubs have opened since 1997 with a broad range of offerings

3.2 million square feet of new Class A office space has been constructed, bringing downtown to a total of over 41 million square feet

3,000 hotel rooms in 11 projects have been added bringing total rooms to 4,858 in 15 properties

$500 million of infrastructure improvements by the City of Houston, METRO, TxDOT and the Downtown District including the reconstruction of 23 downtown streets

8,486 garage and lot parking spaces were added to an inventory of over 100,000

HOUSTON, TEXAS 2 0 1 7 A T A G L A N C E

The City of Houston, the largest city in Texas and the fourth largest city in

the United States, is located on the coastal prairies of southeast Texas

and is home to a diverse array of industries and cultures. Houston is

located in Harris County, the nation’s third most populous county. The

Houston region, officially designated as the Houston - Woodlands - Sugar

Land Metropolitan Statistical Area (MSA), comprises Harris County and

eight other counties: Austin, Brazoria, Chambers, Fort Bend, Galveston,

Liberty, Montgomery, and Waller. The Houston MSA has a population of

approximately 6,656,947 according to new U.S. Census Bureau estimates.

The nine county metropolitan area is the fifth-largest metropolitan area

in the nation and covers 9,444 square miles. The most urbanized portions

of the Houston area are in Harris County, the southern part of

Montgomery County, and the eastern section of Fort Bend County.

Houston is home to the tenth largest port in the world and is in close

proximity to Mexico, a key trading partner. It has a temperate climate

and an affordable cost of living.

With a population exceeding 2.3 million, the population base includes a

wide variety of racial and ethnic groups that give Houston a rich diversity

and cosmopolitan feel.

The U.S. Bureau of Economic analysis estimates metro Houston's Gross

Domestic Product (GDP) at around $503.3 billion. If the MSA were an

independent nation, its economy would rank 23rd largest in the world,

behind Taiwan ($523.6 billion), but ahead of Sweden ($499.4 billion).

Source: Greater Houston Partnership Research, December 2016

Ever since its founding as a port city, Houston has been a dynamic international marketplace, attracting capital and people from all over the world. Today, Houston is the nation's fourth largest economy, and what Forbes calls "America's next great global city."

Houston’s annual trade growth is among the highest in the nation with a total annual trade value growth of 84.6 percent, from $136.451 million in 2005 to $251.855 million in 2015; exceeding the nation’s growth rate of 45.2 percent during that same period.

Houston is already a leading exporter, and our exports have increased 189% since 2003. In fact, Houston is the #1 metro exporter in the top energy related industries. But recent low oil prices have slowed our rate of growth. A plan to boost goods exports can further diversify our economy, help existing companies grow, and create more jobs.

Houston's export plan will connect small and medium-sized enterprises to growing markets, while positioning the region as a location of choice for global investors.

Source: Greater Houston Partnership Research, December 2016

Despite Setbacks Houston Still has a Strong Economy

From 2010 to 2014, Houston added nearly half a million jobs. This period of phenomenal growth provided the momentum needed to sustain the region through the early stages of the energy downturn that began at the end of '14. As oil prices and rig counts fell through '15 and early '16, Houston's job growth began to slow. In '15, the region added 15,200 jobs, and added 13,400 jobs in the 12-months ending Oct '16. In spite of the energy industry's worst downturn in history, Houston managed to post 12-month net job gains throughout this period. A strong U.S. economy, momentum from the previous economic boom, robust population growth, and the $50 billion in petrochemical plant expansions have helped offset losses in upstream energy and manufacturing.

The goods-producing industries (mining and logging, construction, and manufacturing) peaked at 586,300 jobs in December '14, then fell to 536,400 jobs in October '16. Mining and logging, primarily oil and gas extraction and support activities, lost 25,600 jobs, a 22.9 percent decrease. These losses rippled through the economy, triggering declines in other sectors, particularly durable goods manufacturing, wholesale trade and professional and business services. Construction, helped by the petrochemical plant expansions on the eastside of Houston, gained 6,100 jobs over the same period. Manufacturing lost 30,400 jobs and fabricated metal products lost 12,100 jobs. Construction and mining machinery lost 14,200 jobs, and computer and electronics lost 2,300 jobs. The service-providing industries added 66,600 jobs between December '14 and October '16. Gains in industries that rely on population growth offset losses in sectors tied to energy. Trade, transportation, and utilities lost 1,400 jobs, financial activities added 3,000 jobs, and professional, scientific and technical services cut 7,700 jobs. Healthcare and social assistance added 24,500 jobs, accommodation and food services added 27,600, and government gained 14,700 jobs.

Houston's Service-Providing Sector Continued to Add Jobs During the Energy Downturn

No Single Industry or Sector Dominates

Houston Employment

Source: Texas Workforce Commission Aug '16

The service industries account for 4 out of 5 workers in the region

The goods-producing sector accounts for nearly 1 in 5 of

the region's jobs Source: Greater Houston Partnership Research, December 2016

2 0 1 7 E c o n o m i c F o r e c a s t

According to an article by Jim Gaines, a research economist at the Real Estate Center at Texas A&M University, dated January 6, 2017, in the Houston Business Journal, the economic downturn that began in November 2014 seems to be over. Jim Gaines states there's generally a two-to three-year lag between the time the energy sector goes into a slump and all of its impacts on the economy are felt. Houston's energy slump unofficially began on November 27, 2014, when OPEC announced it wouldn't adjust oil production levels. Gaines said that Houston should see some of the slump's final lag effects this year. Gaines also noted that 2016 is poised to be the best year on-record for Houston home sales. The Greater Houston Partnership recorded that November 2016's home sales were the best November on-record for single-family home sales. Much of that boom can be attributed to Houston's population growth. Despite the oil slump, few residents are leaving Houston. In 2016, Houston welcomed 132,000 new residents (45,600 households). Gaines also states that Houston's population is expected to rise to 7.4 million by 2020 and should double to 14 million by 2050. Additionally, according to an article dated January 11, 2017, by G. Scott Thomas of Buffalo Business First, a sister paper to the Houston Business Journal, Houston is on the brink of a population milestone. Buffalo Business First has developed a computer formula that uses 15 years of demographic data to estimate the population of any community at any given moment, and according to predictions by Business First Houston will reach 6.9 million on March 13, 2017 and 7.0 million on November 17, 2017.

What are other signals the downturn is over? As stated by the Greater Houston Partnership's '2017 Houston Employment Forecast': West Texas Intermediate (WTI) the U.S. benchmark for light, sweet crude, now trades near $50/barrel. WTI traded as low as $26 in mid-February 2016. The number of drilling rigs working in the U.S. reached 593 in mid-November. Only 404 rigs, the fewest in recent history, were in the field in mid-May. After 21 months below 50, the Houston Purchasing Managers Index hit 51.1 in October 2016. Readings above 50 signal pending expansion; below 50, contraction. The region created 13,400 jobs in the 12 months ending October '16. Annualized growth had sunk as low as 3,200 jobs in May '16. The forecast also asserts, "the recent downturn could be compared to a tropical storm. The damage done depended on where one stood as the system passed over Houston. Those businesses closest to the energy industry felt the full fury of the storm. Those distant from oil and gas, to extend the metaphor a bit further - on the dry side of the storm - were buffeted but not blown away." The forecast calls for the strongest job growth in manufacturing, wholesale trade, retail trade, finance and insurance, real estate, business, professional and technical services, other services and government.

Renowned Real Estate Economist States: ' The Downturn Seems to be Over'

Source: Greater Houston Partnership Research, December 2016

Source: www.bizjournals.com, 1/6/16, Cara Smith

Since December '14, developers have added more than 37,000 units to local inventory. Another 15,000 are under construction, the majority scheduled to open in the next 12 months. That equates to 52,000 units delivered in a market that's just beginning to recover. Over the past 12 months, the region has absorbed about 6,500 units. The glut cut overall occupancy to 88.9% in November '16, down from 91.5% at its June '15 peak. Occupancy rates below 90% favor tenants. Rents have responded accordingly, dropping between 2% and 6% depending on the apartment class. The market absorbed 14,000 Class A units through the first 10 months of '16, but this performance came at the expense of Class B, C and D properties, which collectively lost 7,500 tenants over the same period. Traditional Class B and C tenants have been enticed into the Class A market with deposit waivers, free rent (as much as 3 months) and other enticements. Whether these tenants renew their leases remains to be seen, but is however, doubtful. If one uses the industry rule of thumb that for every six jobs created, the market absorbs one unit, then Houston needs to add 156,000 jobs to cut the current surplus in half. Once the economy recovers, growth should return to the long-term trend - 50,000 to 60,000 per year.

MULTI-FAMILY..... Moving Forward

Cautiously

Ignoring Class B and C Apartment Market is a 'Big Mistake'

Despite the fact that during the economic downturn some Class B and C tenants were lured into the Class A market with large free rent waivers and other concessions, with the improving conditions a large portion of them most likely will not renew and will return to the Class B and C market. In an article in the Houston Business Journal, dated September, 28, 2016, by Paul Takahashi, Todd Marix of Holliday, Fenoglio, Fowler (HFF) observed that ignoring the Class B and C apartment market is a 'big mistake'. As stated by the article, when Todd Marix brought Broadstone Grand Parkway to market he expected he might receive bids from six or seven interested buyers - par for the oil downturn. The 342-unit garden apartment complex, built in 2009, had solid occupancy in the high 90th percentile but was offering two months free rent amid increasing competition from nearby apartments in Katy. However, Marix's multifamily investment team at HFF received a whopping 18 bids for the property. The deal is still under contract but Marix said it sparked a bidding war between local and out-of-town private equity firms. "We were shocked by the level of participation," Marix said. "We haven't seen this kind of bidding behavior in a long time. It tells me there's some optimism in the market." Despite the oil slump, many opportunistic apartment buyers are returning to Houston in search of good deals, according to Marix.

Young apartment investors are also looking to get into the market during the oil slump, Marix said. These buyers are willing to accept lower rents for one or two years and hope that Houston's apartment market will recover around 2018. "Buyers like Advenir are relatively new to Houston, but they like the recovery aspect," Marix said. "These buyers have patient capital and want to buy in Houston at an advantageous time. They know things will be bumpy for the next year or two but are hoping they will come out the other end with a great deal." Most of these new Houston buyers are focusing on the city's Class B and C apartment market during the energy downturn, Marix said. Marix estimates there are about 620,000 apartment units in Houston, of which the majority - two-thirds - are Class B and C apartments.

Source: Greater Houston Partnership Research, December 2016

Source: www.bizjournals.com, 9/28/16, Paul Takahashi

2727 Brazos Lofts ● 2727 Brazos Street ● Houston, TX 77006 Flood Plain Map

2727 Brazos Lofts

2727 Brazos Lofts ● 2727 Brazos Street ● Houston, TX 77006 Demographics

2727 Brazos Lofts ● 2727 Brazos Street ● Houston, TX 77006

2017 Estimated Population 26,376 103,701 191,5052022 Projected Population 28,979 114,295 212,1512010 Census Population 21,505 85,614 162,8232000 Census Population 16,256 73,597 144,216

Projected Annual Growth 2017 to 2022 2.0% 2.0% 2.2%Historical Annual Growth 2000 to 2017 3.7% 2.4% 1.9%

2017 Median Age 33.7 34.1 34.2

2017 Estimated Households 15,939 51,332 90,2332022 Projected Households 17,531 57,119 100,5432010 Census Households 12,294 40,388 72,2172000 Census Households 8,203 31,372 58,866

Projected Annual Growth 2017 to 2022 2.0% 2.3% 2.3%Historical Annual Growth 2000 to 2017 5.5% 3.7% 3.1%

2017 Estimated White 61.9% 57.7% 57.6%2017 Estimated Black or African American 21.7% 26.2% 24.5%2017 Estimated Asian or Pacific Islander 6.7% 5.7% 6.1%2017 Estimated American Indian or Native Alaskan 0.5% 0.4% 0.5%2017 Estimated Other Races 9.2% 9.9% 11.3%

2017 Estimated Hispanic 23.9% 24.2% 28.3%

2017 Estimated Average Household Income $110,125 $116,159 $122,2092017 Estimated Median Household Income $83,019 $87,541 $90,5692017 Estimated Per Capita Income $67,152 $59,670 $58,982

2017 Estimated Elementary (Grade Level 0 to 8) 2.4% 4.8% 6.3%2017 Estimated Some High School (Grade Level 9 to 11) 4.3% 6.8% 6.3%2017 Estimated High School Graduate 10.0% 14.2% 13.4%2017 Estimated Some College 17.6% 16.0% 15.6%2017 Estimated Associates Degree Only 4.4% 3.9% 4.1%2017 Estimated Bachelors Degree Only 35.0% 28.2% 28.2%2017 Estimated Graduate Degree 26.2% 26.1% 26.1%

2017 Estimated Total Businesses 3,361 11,102 19,5872017 Estimated Total Employees 64,968 247,176 405,1302017 Estimated Employee Population per Business 19.3 22.3 20.72017 Estimated Residential Population per Business 7.8 9.3 9.8

SUMMARY PROFILE1 Mile Radius

2 Mile Radius

3 Mile Radius

2000-2010 Census, 2017 Estimates with 2022 ProjectionsCalculated using Weighted Block Centroid from Block Groups

Ethnicity - 1 Mile Radius

POPU

LATI

ON

RA

CE

AN

D E

THN

ICIT

Y IN

CO

ME

Average Income Subject - 1 Mile Radius

EDU

CA

TIO

N(A

GE

25+)

BU

SIN

ESS

HO

USE

HO

LDS

76%

24%

Non-Hispanic

Hispanic

$110,125

$72,073

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

Subject Houston

47%

17%

5%

7%

24% White

Black

Asian

Other

Hispanic

2727 Brazos Lofts ● 2727 Brazos

D I S C L A I M E R & N O N-E N D O R S E M E N T N O T I C E

FOR INFORMATION PLEASE CONTACT:

2727 Brazos Lofts A P A R T M E N T H O M E S

MARK KALIL Broker/Owner

Mark Kalil & Associates Inc. mark@markkalil.com

713-799-8700

MARK KALIL & ASSOCIATES INC.

2001 Holcombe Blvd. I Suite 105 I Houston, Tx 77307 www.markkalil.com

Broker License #0457578

Disclaimer: The information contained in this Memorandum reflects material from sources deemed to be reliable, including data such as operating statements, rent rolls, etc. However, we (Mark Kalil & Associates, Inc. or any of the owners or officers, directors, employees, agents or representatives of any such entities) have not verified its accuracy and make no guarantee or representation about it. It is submitted subject to the possibility of errors, omissions, change of rental or other conditions. We include projections, opinions, assumptions or estimates for example only, and they may not represent current or future performance of the property. We make no 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. You and your tax and legal advisors should verify the information and rely on his accountants or attorneys for legal and tax advice. Rates of return vary daily. No representations are made concerning environmental issues, if any. Non-Endorsement Notice: Mark Kalil & Associates, Inc. is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by Mark Kalil & Associates, Inc. or any of the owners or officers, directors, employees, agents or representatives of any such entities, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY