braeswood plaza - loopnet...of bellaire is almost100% high‐end and as available construction sites...

| Multi-Family Brokerage | 713.783.6262 or 512.610.8000 |

License #0393404 | hipapt.com

Braeswood PlazaA 66 Unit, Houston, Texas Apartment Community

Located in the Braeswood Area of Southwest Houston

offer terms and requirements

EXCLUSIVE OFFERING: Braeswood Plaza| 5430 Birdwood| Houston, TX 77096LISTING BROKER: Bishale Patel| Houston Income Properties, Inc. | 713.783.6262

Offer Date: To Be DeterminedOffering Process: The Property is being offered on an "All Cash" basis to qualified purchasers (New Loan Required).

Sale Condition: The owner of the Property is selling the Property in a "As-Is, Where-Is" condition and without representations or warranties, expressed or implied, of any kind.

Offer Guidelines: Offers should be presented in the form of a non-binding Letter-of-Intent and must include at least:·Purchase Price·Earnest Money Deposit Amount·Feasibility Period·Description of Equity Source·Closing Date·Other terms and conditions particular to the buyer’s investment process·Summary of buyer’s qualifications and evidence of financial ability to close

Site Visits: All requests for additional information are to be made through the broker—713-783-6262

Disclaimer: The offering is subject to the Disclaimer contained herein.

Principals and their representatives shall please refrain from contacting any onsite personnel or residents.



2

table of contentsEXECUTIVE SUMMARY 4

• Investment Summary• Property Information (2 pages)• Location Maps (2 Pages)• Property Aerial

FINANCIAL ANALYSIS 11• Actual and Pro Forma Analysis• 10 Year Cash Flow Analysis• Value Projection at 60 Months

PROPERTY INFORMATION 15• Community Features• Unit Mix with Floor Plans• Site Map• Neighborhood Aerial• Harris County Plat• Flood Map

MARKET OVERVIEW 22• Primary Market Statistics• Sub Market Statistics• Comparative Rental Properties• Comparative Rental Properties Map

REGIONAL HIGHLIGHTS 27• County Location Map• Snapshot of Harris County• Houston Area Map• Houston MSA Facts (2 pages)• Houston Business• Area Development• Houston Demographics• Neighborhood Demographics

PHOTO GALLERY 37• Property Photos (5 pages)

LEGAL INFORMATION• Brokerage Services Information 43• Disclaimer 44



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PROPERTY DESCRIPTIONBraeswood Plaza ALL CASH - Buyer to Acquire a New Loan5430 Birdwood No Official Asking PriceHouston, Texas 77096

Garden Style - 2 Story Buildings As of 11-26-2017Water, Pest, Trash

1970 HOUSTONMostly Brick with some Siding BRAESWOOD

$48,230 / Mth

637 S.F.

investment summary

Primary Market Area:Secondary Market Area:

For Current and Projected NOI see analysis in

the financial section

INVESTMENT PROFILE

Projected NOI: $270,704

Name:Address:

City / State:

Type of Sale:ASKING PRICE:

Current NOI:

42,027Scheduled Market Rent:66

Property Type:No. of Buildings: 5

$731Avg. Rent / Unit:

Yr. of Construction:Materials:

Per HCAD

$247,704PLEASE DO NOT VISIT THE PROPERTY WITHOUT MAKING AN APPOINTMENT THROUGH THE BROKER.

Avg. Rent / SF: $1.15

95%Current Occupancy:RUBS:

Number of Units:

Avg. Unit Size:Total Rentable SF:

INVESTMENT HIGHLIGHTS: Braeswood Plaza Apartments lie on the border of the Bellaire City Limits and is a possible future land play. The property is zoned forthe prestigious Bellaire High School (in the .50% academically in the U.S.). The trend in this area is to acquire existing older developments and redevelop thesites with high‐end class "A" construction. The property is located between multi‐million dollar neighborhoods within the city of Bellaire and neighborhoodswithin the Meyerland area where older homes built in the 60's are averaging over $540K+ and new homes are selling for well over $1 million. It is also withinclose proximity to the community of Westbury where 1960 built homes are selling for an average of $300K+ or $159.92/sf. Braeswood Plaza is potentially a landbank opportunity given the close proximity to Loop 610 (1.3 miles) and the surrounding areas that are going through gentrification.LOCATION: The subject property is located on the fringe of the Bellaire city limits and just west of the Meyerland area. It is located 3.5 miles southwest of theprestigious Galleria Shopping and Employment District. The property has easy access to major employers, health care, schools, shopping and dining in thesurrounding areas. The location is convenient to the Westpark Toll Way, which connects West Houston to the Galleria, Loop 610, the Sam Houston Toll Way(Beltway 8) and Hwy 69/Southwest Frwy. It is a short commute to Houston's largest employment centers including the Galleria, Westchase District, GreenwayPlaza, Texas Medical Center and Downtown Houston. The area surrounding the property consists of high‐end neighborhoods such as the Galleria area to thenorth and the city of Bellaire just to the north and east where the construction is predominately "A" quality. The trend in these neighborhoods (due to location)is to purchase an older home, demolish it and rebuild with high‐end construction. Within the city of Bellaire, in 2017, the average purchase price of a single familyhome is $279/sf, which is higher than the Houston Metro average of $116/sf. The median home listing price in 2017 is $1,094,000. New construction in the cityof Bellaire is almost 100% high‐end and as available construction sites disappear, developers will begin to encroach surrounding areas. Braeswood Plaza appearsto be in a prime location poised for commercial or residential redevelopment, due to its location just a 1/2 mile outside the Bellaire city limits, where the land values,depending on location and lot size, range between $73/sf to $80/sf and it close proximity to Loop 610.



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Roof:

8 EFF 348 2,784 $575 $4,600 $1.65

4 2-1 830 3,320 $845 $3,380 $1.02

626 6261 1-1

Individual

Rentable Sq. Ft:

$0.93921

$895

$575 $575 $1.23

$1.25

650 5,200 $745 $5,960 $1.15

626 18,780 $735 $22,050 $1.17

PROPERTY INFORMATION

Estimated Total Collections ~ (Occupancy is {95%} as of 11-26-2017 BOX SCORE)

1 3-1 896 896

Mth.Coll.

Jul-2017Aug-2017Sep-2017Sept. 2017 T-3 AVG$45,877 $47,537 $43,298 $46,797

1970#UNITS

4

1

8 1-1

EFF 396 1,584 $1.45

EFF 468 468

property information

PRICING INFORMATION

No Official Asking PriceUnits:

Avg. Size Unit:

Year Built:

Electric Meter:

66

637 S.F. UNIT

TYPESQ. FT.

RENT /

UNIT

RENT

PER SF

TOTAL

RENT

TOTAL

SQ. FT.NOTES

UNIT MIX - CURRENT MARKET RENTS (please verify)

$1.00

6 2-1 939 5,634 $845 $5,070 $0.90

2 2-1

1 2-2 893 893 $895 $895 $1.00

AVG.

RENT/SF

66 95% 637 42,027 $731 $48,230 $1.15

Pitched & Flat

$895

TOTAL

UNITS

Est.

Occupancy

AVG.

SQ. FT.

TOTAL SQ.

FT.

AVG.

RENT/U

TOTAL RENT

$785 $785

$575 $2,300

1.48Land (Acres) Per CAD:

42,027

1,842 $860 $1,720

30 1-1

Braeswood Plaza is a 95% occupied "B-" apartment community in a "B"area of southwest Houston. It is located between the City of Bellaire,Westbury and Meyerland areas in Southwest Houston. The propertyoffers investors an attractive, well-positioned asset in one of Houston'smost densely populated areas with good upside potential. The communityspans 1.48 acres and consists of 66 units in four buildings with oneadditional building for the office. The property has flat and pitched roofswith a mostly brick exterior and gated access. All units are comfortablyappointed with individual controlled AC/Heat, fully equipped kitchens, tilesurround tubs in bathrooms, tile flooring, W/D connection.

Braeswood Plaza is located just west of Meyerland where average homeprices are $540K+ with an average SF of 2,658. Its location providesexcellent access to health care, area schools (all within a mile and a half ofthe property) and large employment centers such as Houston BaptistUniversity, Memorial Hermann SW Hospital, Greenway Plaza, HoustonChinatown, Texas Medical Center, all of which are within five miles or lessof the property. The property's location has ease of access to Loop 610,IH 59 and many major thoroughfares within the neighborhood such asBellaire Blvd, Bissonnet St., Braeswood Blvd., S. Rice Blvd, Chimney RockRd. and Beechnut St.

20% 60%

15%3%2%

By Unit Type

EFF 1-1 2-1 2-2 3-1

12%

6%

2%

46%

2%12%

6%9%3%

2%By Sq. Ft.

348 396 468 626 626650 830 939 921 893

Unit Mix Stats



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Individual

Roof: Pitched & Flat

Paving: Asphaltic Concrete

Exterior Construction: Mostly Brick with some Siding

No. of Buildings:

# of Stories: Garden Style - 2 Story Buildings

Units / Acre:

6.) Located across from homes in the $500,000+ range

7.) Located within minutes of H‐E‐B, WalMart Supercenter, Target, , Loop 610, Hwy 59, AltHwy 90, Westpark Tollway and Beltway 8

Hou Comm College 0.100263

Houston ISD

City of Houston

Harris County

Port of Houston 0.01256

Parking: Open Spaces

$51,057

1970

Master - No RUBS is in Place

Electric Meter:

Gas Fired Boilers

5

Gas: Master - No RUBS in Place

45

property information

Hot Water:

2017 Tax Rate

2017 Assmt.

Approx. Total Tax

1.2067

0.58421

HCAD# 0950420000001

Taxing EntityRate/$100 of Value

Age:

0.622615

Water:

2.526348

A/C Type: Individual HVAC

$2,021,0008.) Less than 6 miles to major employment areas, such as Greenway Plaza, Galleria Houston,Texas Medical Center, Houston Chinatown, Westchase District, and many neighborhoodbusinesses. It is approximately 3 miles to Houston Community College, Houston BaptistUniversity, Memorial Hermann Southwest, Plaza Americas, Rice Village and the City limits ofBellaire, West University. It is an 8 mile commute to downtown Houston and an 9.5 milecommute to Houston's Energy Corridor

1.) Property is being offered "All Cash" (buyer to acquire new loan)

2.) 1970 Built "B‐" Grade, Garden Style Apartment Complex located in a B area

3.) The property is located less than a mile south of the city limits of Bellaire, a city locatedwithin the city of Houston with higher than Houston's average land and home values

4.) Zoned for Bellaire High School

5.) Located within a densely populated area of southwest Houston

PROPERTY HIGHLIGHTS

CONSTRUCTION FEATURES

PROPERTY TAX

REGIONAL HIGHLIGHTSBraeswood Plaza is located in one of the two most densely populated areas in Houston. Likeany other neighborhood near Loop 610 of Houston it is undergoing gentrification.Developers are coming in and buying up older properties in the area that were built in the50's and 60's and demolishing them and rebuilding high‐end homes and retail centers.The property's location is less than a mile south of the city limits of Bellaire, an enclavecommunity surrounded by the big city of Houston. Bellaire is both inside and outside Loop610 of Houston. It is an affluent area with average home values upwards of $1,000,000 andaverage land values are $70/SF and higher, depending on the size and location of the lot.Braeswood Plaza, although not located within the city limits of Bellaire, is zoned for BellaireHigh School, the preferred high school in the area due to its academic achievements and itslocation within the city limits of Bellaire. High‐rise office buildings are located along Loop610, but Bellaire is largely known as a prestigious residential city.



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location map



Braeswood PlazaA p a r t m e n t C o m m u n i t y

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location map




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property aerial




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FINA

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LYSIS



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INCOME (See Details on the left)Gross Scheduled Rent is {Current Rent} Annualized + 5% Incr. N/A $607,698 $50,642 / Mo

(Loss)/Gain to Lease - Pro Forma Estimated at {1%} of GSR N/A (6,077) 1%

Estimated Annual Gross Potential Rental Income N/A 601,621 99%

Vacancy Loss - Pro-Forma Estimated at {5%} of GSR N/A ($30,385) 5%

Non-Revenue Units - Pro Formas Estimated at {1%} GSR N/A (3,038) 0.50%

Other Losses - Pro Forma Estimated at {1%} GSR N/A (3,038) 0.50%

$48,230 / Mo $731 / Unit $1.15 / S.F. Total Annual Rental Income 551,060 {95%} of GSR 565,159 {93%} of GSR

Actual Income Used September-2017 $47,537 Total Other Income (Pro Forma Implements a Water RUBS) 19,380 $294 / Unit / Yr 42,900 $650 / Unit / Yr

Actual Income Used "Annualized" $570,440

Leased Occupancy As of 11-26-2017 95%

$50,642 / Mo $767 / Unit $1.20 / S.F. EXPENSES (See Details on the Left)Fixed Expenses

Property Taxes (See Details on the left) $51,057 $774 Unit $76,551 $1,160 per Unit

2017 Tax Rate Actual 2.526348% Property Insurance {per Owner's Sept. T-12 P & L} - Includes Flood Insurance 27,221 $412 per Unit 27,221 $412 per Unit

2017 Assmt. Actual $2,021,000 Total Fixed Expenses 78,279 $1,186 per Unit 103,772 $1,572 per Unit

Pro forma Rate Used 2017 Tax Rate 2.526348%

Pro Forma Estimated Post Sale Assmt. $3,030,096 Utility CostsElectric - {Common Area and Vacants} 5,740 $87 per Unit 5,740 $87 per Unit

Water & Sewer & Stormwater 29,873 $453 per Unit 29,873 $453 per Unit

Gas 6,738 $102 per Unit 6,738 $102 per Unit

Utility Billing Service 0 $ per Unit 0 $ per Unit

Total Utility Costs 42,351 $642 per Unit 42,351 $642 per Unit

Est. Ins. / Unit / Yr Actual $412

Est. Reserve / Unit / Yr Estimated $300 Other ExpensesGeneral & Administrative - Includes Telephone 14,295 $217 per Unit 13,200 $200 per Unit

Other Expenses 0 $ per Unit 0 $ per Unit

Number of Units 66 Advertising/Marketing/Residents Activities 1,733 $26 per Unit 1,650 $25 per Unit

Avg Unit Size 637 S.F. Repairs/Maintenance 30,093 $456 per Unit 29,700 $450 per Unit

Net Rentable Area 42,027 Payroll + Burden + Commissions 90,187 $1,366 per Unit 89,100 $1,350 per Unit

Land {Acres} Per HCAD 1.48 Contract Services {Trash, Pest, Grounds} 17,476 $265 per Unit 16,500 $250 per Unit

Units per Acre 44.56 Management Fees {Calculated on the Income above} 28,522 5.00% 21,282 3.50%

Date Built / Per CO's 1970 Total Other Expenses 182,306 $2,762 per Unit 171,432 $2,597 per Unit

e-Meter Individual Reserve for Replacement 19,800 $300 per Unit 19,800 $300 per Unit

RUBS Water, Pest, Trash Total Operating Expenses 322,736 $4,890 per Unit 337,355 $5,111 per Unit

Hot Water Supply Gas Fired BoilersHVAC Individual HVAC

ACTUAL AND PRO FORMA ANALYSIS STABILIZED PRO FORMA ACTUAL Sept. 2017 Annualized

ACTUAL Sept. 2017 T-12 PRO FORMA

Net Operating Income $247,704 $3,753 per Unit $270,704 $4,102 per Unit

PROPERTY TAX DETAILS

INCOME DETAILS

EXPENSE, INSURANCE AND RESERVE DETAILS

PROPERTY DETAILS

Pro forma Scheduled Rents include a {5.00%} Rent Increase

ASKING PRICE

Current Scheduled Rents (CSR)

MARKET TO DETERMINE THE PRICE

Post Sale Assmt. is the 2017 Assmt increased by {50%}

Actual Expense Column is September 2017 Trailing 12 Months Actual, except where noted.

Total Gross Annual Income 570,440 $47,537 / Mo 608,059 $50,672 / Mo

Monticello SquareA P A R T M E N T C O M M U N I T Y

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HOUSTON INCOME PROPERTIES, INC.

Braeswood Plaza UNITS:

SQ. FT:

AVG UNIT SIZE:

INCOME MONTHLY YEAR 1 YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8 YEAR 9 YEAR 10

Annual Market Rent Growth Rates Used

Potential IncomeOther Income

Gross IncomeVacancy / Other Losses

Economic Loss % Includes Bad Debt

EFFECTIVE GROSS INCOME

Annual Operating Expense Growth Rates Used

EXPENSES

Operating Expenses

Expenses / Unit

Reserve for Replacement @ {$300} per unit

TOTAL EXPENSES

Total Expenses / Unit

NET OPERATING INCOME

NOI GROWTH RATE

Year 1 has a {5.00%} rent increase post

upgrades, see stabilized pro forma on

the previous page

10 year cash flow analysis

Ten Year Cash Flow Analysis

42,027

637

66

3.0%

3.0%

($327,082) ($336,894) ($347,001) ($357,411) ($368,134)

13.25% 3.0% 3.0% 3.0% 3.0%

$50,642$3,575

$54,217

$607,698$42,900

$650,598

$5,558

$310,922

3.2%

3.0%

3.2%

3.0%

3.0% 3.0% 3.0% 3.0%

3.0% 3.0%

$725,623$51,225

$776,848($36,281)

5.0%$740,567

$52,762

$800,153($37,370)

$341,589

3.2%

$747,392

($337,355)

$5,111

$270,704

9.3%

7.0%

($42,539)

$608,059

$4,811

($317,555)

$625,928.94$44,187

$670,116($31,296)

5.0%$638,819

$4,956

3.0%

($19,800)

$690,219($32,235)

5.0%

3.0%

($19,800)

($346,882)

$5,256

$291,938

7.8%

$301,290

3.2%

$657,984

$5,104($19,800)

($356,694)

$5,404

$664,048$46,878

$710,926($33,202)

5.0%$677,724

$5,258($19,800)

($366,801)

3.0%

$644,707$45,512.61

$6,045

$320,844

3.2%

$704,489$49,733

$754,221($35,224)

5.0%$718,997

$5,578($19,800)

($387,934)

$5,878

$331,063

3.2%

$698,055

$5,415($19,800)

($377,211)

$5,715

$683,969$48,284

$732,254($34,198)

$785,667

($402,270)

$6,095($19,800)

($422,070)

$6,395

$363,598

5.0%$762,784

($390,553)

$5,917($19,800)

($410,353)

$6,217

$352,431

($398,978)

5.0%

3.0%

($379,178)

$5,745($19,800)

$809,237

($414,338)

$6,278($19,800)

($434,138)

$792,908$55,975

$848,883($39,645)

5.0%

3.2%

$769,814$54,344

$824,158($38,491)

5.0%

$6,578

$375,100

3.2%



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Braeswood Plaza

Number of Units: 66

Year Built: 1970

Roofs: Pitched & Flat

HVAC System: Individual HVAC

Metering: Electric: Individual

Water, Trash, Pest RUBS in Place

Hot Water: Gas Fired Boilers

Est. Occupancy at Stabilization: 95%

REVENUE AND COLLECTIONS% of Gross Potential Income

Total Gross Rent PotentialVacancy/Other Rental Losses {5%} of Gross Rent Potential

Estimated Gross Potential Income {95%} of Gross Rent Potential

Total Other Income Potential $732 / Unit/Yr

Total Estimated Gross Annual Income $10,577 / Unit/Yr

EXPENSES

Total Expenses ~ ( average Unit size is {637 S.F.} ) $5,715 / Unit $8.98 / SF Cap Rate Value Generated

$145.41/SFEstimated Stabilized Net Operating Income $138.80/SF

( at 84 Months Post Stabilization ) $132.77/SF

Projection is based on the stabilized year 1 pro

forma with a 3% rent and a 3% expense growth

rate for years 2 thru 5

$5,833,528

$5,579,897

100%$683,969.45

$48,284$649,771($34,198)

Estimated Potential Value Based on Stabilized NOI of {$320,844} ( at 60 Mths Post Stabilization)

STABILIZED PRO FORMAProjected at 60 Months Post Purchase and Income Stabilization

$84,544/U

($377,211)

$320,844$6,111,315

5.75%

value projection at 60 months (5 yrs)

5.25%5.50%

PROPERTY INFORMATION42,027

637 S.F.

$56,997 $864 / Unit

Approx. NRA:

Average Unit Size:

Proposed Mthly. Mkt. Rent at 60 Mths (5 YRS): $1.356 / SF

$698,055

$92,596/U$88,387/U



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community features

9 distinct floor plans to choose from.

Unit Features (Interior appointments may vary in each design) Kitchen Pantry Fully Equipped All Electric Kitchen Private Dining Room Serve Through Kitchen Bars Individual Controlled A/C and Heat Black or White AppliancesWasher and Dryer Connections Tile Floors

Property Amenities

Minutes From Interstate 59 and 610 Loop Zoned for Bellaire High School On-Site Management Assigned Parking Gated Access Perimeter Fence Picnic Area with Barbecue Public Parks Nearby Mature Landscaping Clothes Care Center High Speed Internet Ready Close to Major Employment Perimeter Fencing Minutes from Major Neighborhood Transportation Arteries and Easy Access to Freeways

Faux Wood Flooring Ceiling FansWalk-In Closets Frost-Free RefrigeratorWindow Coverings Shower / Bath Combination Recently Renovated Interiors

Community Benefits Braeswood Plaza Apartments



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floor plans

Beds: 1

Baths: 1Sq. Ft:

Studio

1348

Beds:

Baths:Sq. Ft:

Sq. Ft: 830

2

Baths:

Beds: 3

Baths:

Beds: 2

Baths: 21

Beds: 2

Baths: 1

Beds:

Beds:

Studio

Baths: 1Sq. Ft: 396 626

Beds: 1

Baths: 1Sq. Ft: 650

Beds: 2

Baths: 1Sq. Ft: 939

Sq. Ft: 921 Sq. Ft: 9212

Sq. Ft: 893



17

site plan

HWY 290



18

neighborhood aerial



19

HARRIS COUNTY APPRISAL DISTRICT MAP




20

flood map




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MA

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A B C D OVERALLTotal # Projects 1 13 37 13 64Total # Units 428 5,358 11,221 1,466 18,473

Total # Units 0BR N/A 0.50% 0.80% 0.00% 1.30%

Total # Units 1BR 1.50% 21.70% 37.90% 4.90% 66.00%

Total # Units 2BR 1.00% 7.60% 18.60% 2.90% 30.00%

Total # Units 3BR N/A 0.40% 1.60% 0.20% 2.20%

Total # Units 4BR N/A 0.00% 0.10% N/A 0.10%

Avg Units per Project 428 412 303 113 289

Avg SF 931 789 806 852 808Total # Units Under N/A N/A N/A N/A N/A

Total # Units Proposed N/A N/A N/A N/A N/A

A B C D OVERALLAvg Physical Occupancy 94% 92% 75% 89% 81%Avg Pre-Leased Occupancy 96% 92% 76% 89% 82%

A B C D OVERALLAvg Market Rent/SF 1.244 0.99 0.885 0.735 0.912Avg Market Rent/SF 0BR N/A 1.309 1.265 0.969 1.277Avg Market Rent/SF 1BR 1.323 1.017 0.93 0.766 0.955Avg Market Rent/SF 2BR 1.123 0.931 0.851 0.734 0.869Avg Market Rent/SF 3BR N/A 0.886 0.822 0.747 0.829Avg Market Rent/SF 4BR N/A 1.563 0.847 N/A 1.026Avg Market Rent/Unit 1131.26 767.86 704.84 620.7 726.32Avg Market Rent/Unit 0BR N/A 620.78 558.75 387.5 580.33Avg Market Rent/Unit 1BR 992.35 710.92 641.84 563.86 666.52Avg Market Rent/Unit 2BR 1342.07 945.6 862.26 761.6 888.84Avg Market Rent/Unit 3BR N/A 1119.34 1043.4 992.93 1054.56Avg Market Rent/Unit 4BR N/A 2500 1396.17 N/A 1672.13

primary market statistics

APARTMENT MARKET STATISTICS OVERVIEW - SUMMARYHOUSTONNov-2017

Property / Unit Information

Occupancy



23

A B C D OVERALLTotal # Projects 3 30 50 5 88Total # Units 425 5,841 12,647 1,654 20,567

Total # Units 0BR N/A 0.60% 2.30% 0.00% 3.00%

Total # Units 1BR 1.40% 12.70% 30.70% 2.30% 47.10%

Total # Units 2BR 0.70% 12.00% 26.80% 4.40% 44.00%

Total # Units 3BR N/A 0.40% 3.10% 1.60% 5.10%

Total # Units 4BR N/A 0.00% 0.00% N/A 0.00%

Avg Units per Project 142 195 253 331 234

Avg SF 938 813 824 898 830Total # Units Under N/A N/A N/A N/A N/A

Total # Units Proposed N/A N/A N/A N/A N/A

A B C D OVERALLAvg Physical Occupancy 97% 84% 80% 80% 81%Avg Pre-Leased Occupancy 98% 86% 79% 64% 80%

A B C D OVERALLAvg Market Rent/SF 1.451 1.076 0.905 0.822 0.955Avg Market Rent/SF 0BR N/A 1.301 1.221 0.57 1.229Avg Market Rent/SF 1BR 1.518 1.074 0.955 0.915 1.002Avg Market Rent/SF 2BR 1.321 1.068 0.859 0.804 0.918Avg Market Rent/SF 3BR N/A 0.762 0.81 0.749 0.787Avg Market Rent/SF 4BR N/A 0.66 0.447 N/A 0.636Avg Market Rent/Unit 1346.44 814.69 729.73 723.24 764.95Avg Market Rent/Unit 0BR N/A 621.74 612.6 285 610.15Avg Market Rent/Unit 1BR 1197.08 737.62 648.8 594.64 686.65Avg Market Rent/Unit 2BR 1637.88 912.81 822.85 737.3 852.25Avg Market Rent/Unit 3BR N/A 1002.1 999.59 876.09 960.74Avg Market Rent/Unit 4BR N/A 915 820 N/A 904.44

Occupancy

sub-market statistics

APARTMENT MARKET STATISTICS OVERVIEW - SUMMARYBRAESWOOD

Nov-2017

Property / Unit Information



24

comparative rental propertiesBraeswood PlazaA P A R T M E N T C O M M U N I T Y

1 2 3

4 5 5



Project Built # UnitsAvg. SF /

UnitAvg Rent /

UnitAvg Rent /

SFLeased

1 Crossings at St Charles 5505 Pine, Houston, TX 77081 1971 40 660 $730 $1.11 94%2 Crossings at Berkley 5900 N Braeswood 1970 151 721 $791 $1.10 94%3 Falls of Maplewood 9600 Glenfield Ct 1977 108 650 $749 $1.15 97%4 Meyerland Court 9700 Glenfield Court 1977 169 781 $836 $1.07 99%5 Ashford Buena Vista 6000 Bissonnet 1970 207 958 $863 $0.90 90%6 Valerie 6226 Valerie 1964 64 734 $752 $1.02 100%

Rent Comp Ttls / Average 1972 123 751 $795 $1.06 96%

7 Braeswood Plaza 1970 66 628 $726 $1.16 95%5430 Birdwood

MARKET RENTS

Address / Zip

25

rent comparatives map



26

REG

ION

AL H

IGH

LIGH

TS



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county location map

HarrisC o u n t y M a p

Harris County is the 3rd most populous county in the nation, with more residents than 24 states



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SNAPSHOT OF HARRIS COUNTY

Sustained Rapid GrowthHarris County’s population rose dramatically between 2000 and 2010. Population for the Houston MSA during thistime increased by 1,231,393 persons and Harris County percent of this growth was 56.2. Harris County continues tobe the third largest county in terms of population and one of the fastest growing counties with 67% growth since1990. The chart below shows the percentage of population growth for Harris County, the entire nation and both LAand Cook counties, which are the only two counties with more population than Harris County in the US. Over a 26year period, Harris County's population has grown more than twice as fast as the nation's population. HarrisCounty is on track to pass Cook County and become the second most populous U.S. County within the next five toseven years.

Major Employment Sectors include (in order of share of percentage of employment); Trade, Transportation andUtilities, Professional and Business Services, Educational and Health Services

Harris County Housing Trends: As growth occurs residential stock must keep up or housing markets tighten. Since2010, population growth has eclipsed the production of housing in Harris County. The result is a tighter market,with only 8 percent of all units vacant in 2015. Though the countywide vacancy rate is lower today than at any pointin the past 10 years, the completion of several large multi‐family properties and the recent economic slowdown inHouston may increase the share of available housing in the near future, especially for renters at the upper end ofthe market. A result of slowed housing production is higher prices for all types of housing across the county. Thisreality complicates Houston’s reputation as an affordable city. In 2007, the median price for a home in HarrisCounty was $121,000. That number dropped to $100,000 in 2012 but has since grown to nearly $141,000 in 2017.While the median home price is lower than in many other metros, the significant jump in price hits especially hardfor low‐income buyers and renters.

Harris County, Texas - is the third largest county in theUnited States by population, ranking behind only LosAngeles County (Los Angeles, CA) and Cook County (Chicago,IL). Its county seat is Houston, Texas, also the fourth largestcity in the nation. Harris County sits on the Gulf of Mexico inthe Houston‐Galveston Area Council region of southeasternTexas and it is central to the Houston Metro Area. The2010 Census figures showed that half of the growth inpopulation was attributed to movement of immigrants tothe area and half to natural increase.• Harris County is part of the Houston, Woodlands‐Sugarland‐MSA with a total population of approximately 6.7million residents.• Harris County ranks first among Texas counties with acurrent population of approximately 4.7 million residents.• The county's largest employer is the Government (local,state and federal) and public education. Other majoremployers are concentrated in industries relating tosemiconductors, software, engineering and healthcare.

HARRIS COUNTY REGION



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Houston area map

Greater Houston Area



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houston msa facts



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houston msa facts



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HOUSTON BUSINESS

ADVANCED MANUFACTURINGHouston ranked as the No. 1 City for Manufacturing in the U.S. by Forbes in 2014. Across 6,300 manufacturingestablishments in the region, $80 billion dollars of products are produced annually.

ADVANCED TECHNOLOGIESHouston’s vibrant technology industry centers on traditional strengths in energy, medicine and aerospace. Theregion’s innovation flows from NASA, the Texas Medical Center and three tier one universities including RiceUniversity, the University of Houston and Texas A&M University. More than 175,850 high‐tech professionals callHouston home.

ENERGYThe Houston MSA is home to more than 4,800 energy‐related establishments and employs nearly a third of thenation’s jobs in oil and gas extraction. The local energy industry extends from traditional fossil fuels to alternativeand renewable energy.

HEADQUARTERS & BUSINESS SERVICESThe professional and business services sector thrives in the Houston region and employs nearly 460,000Houstonians, representing 15.4 percent of all jobs in the region.

LIFE SCIENCESHouston is the birthplace of nanotechnology and is home to the largest medical complex in the world ‐ the TexasMedical Center (TMC). Houston has more than 190 life science and biotechnology companies as well as academicpartnerships; 132 cutting edge hospitals and health clinics, and the country’s top research facilities.

TRANSPORTATION & LOGISTICSHouston is a gateway for trade to Mexico, Canada and the enormous expanding markets of Latin America.Houston’s geographic advantages and proximity to major metropolitan centers throughout the U.S. Midwestmakes it an ideal venue to set up manufacturing and logistics facilities with fewer supply chain costs.

The Houston ‐ The Woodlands ‐ Sugar Land MetropolitanStatistical Area (Houston MSA) consists of 9 counties:Austin, Brazoria, Chambers, Fort Bend, Galveston, Harris,Liberty, Montgomery and Waller. Additional facts about theHouston region:

• The City of Houston is the nation’s fourth most populouscity with a population of 2.3 million.• The Houston region ranks fifth among U.S. metropolitanstatistical areas (MSA) with a population of 6.7 million.• The Houston MSA has a gross domestic product of $525billion, fourth largest in the nation.• The Houston Airport System (HAS) serves 198 domesticand international destinations.• The Port of Houston is ranked first in the U.S. in foreigntonnage and is the largest Gulf Coast container port and the2nd in total tonnage.



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AREA DEVELOPMENT

Braeswood Plaza is located in the Braeswood area of southwest Houston, just south of the City of Bellaire. Bellaire is a city within thecity of Houston and is roughly bounded by Westpark Dr. as the far most northern boundary, Beechnut Street as the far southern boundary New Castleand Ferris Dr. as the eastern boundary and Renwick as the furthest western boundary. Bellaire is both inside and outside Loop 610 of Houston. It is anaffluent area with homes upwards of $1,000,000. Monticello, although not located within the city limits of Bellaire, is zoned for Bellaire High School, thepreferred high school in the area due to its location within the city limits of Bellaire.

Employment- Due to the property's location in the Braeswood area of southwest Houston, one of the densest areas in Harris County, it has anabundance of employment within a short commute. In addition the property is located within minutes Bissonnet St., Bellarie Blvd., Gulfton, Chimney Rock,Beechnut St, and West Park Toll Road as well as the 610 Loop and Hwy 59 (SW Fwy.) (all are major transportation arteries of the area and Houston). Mostof the major employment areas of Houston are within a 5 to 45 minute commute of the property such as the Westchase District, Houston BaptistUniversity, Memorial Hermann Southwest Hospital District, Greenway Plaza, Houston Chinatown, NRG Park, Texas Medical Center, Downtown Houston,Energy Corridor, Rice Village, City of Bellaire, and the city of Sugar Land.

Area Development :Bellaire Area Development: H-E-B closed its Bellaire location and plans to demolish it to make way for the San Antonio-based grocer’s first two-storyfood emporium in the Houston area on the 3.055 acre site. Using the two-story format allows H-E-B to penetrate Houston’s upscale urban submarketswhere development sites are scarce and land is expensive. The store is expected to be about 70,000-SF. Bellaire Town Center, a retail/office complexthat opened in 1950 in the heart of Bellaire is targeted for redevelopment and expansion. The development covers more than 3 acres. The new developmentwill be a two-story retail center with office, retail and restaurants. In today’s market, the location is one in highest demand, infill markets in Texas. The site islocated about two miles due south of the Galleria and is expected fall 2018. Chevron's 30.5 acre facility along Loop 610 in Bellaire is on the market. It isexpected to attract interest from significant developers from around the nation. Bellaire City Council voted to adopt planning language that could pave theway for more dense development on the site.Westchase District Development: Lockton Place a new eight-story, 186,000-square-foot office building for Lockton Cos., a property and casualtyinsurer with 300 full-time employees in Houston. Houston-based Neighbors Health, LLC relocated its corporate headquarters in spring 2017, leasing98,000 SF in Richmond Park Westchase, 10800 Richmond Ave. Transwestern is developing two multi-tenant retail centers on a 3-acre site located on thesouthwest corner of Westheimer and CityWest Blvd. The eastern building is under construction. It will be 12,000 square feet. Signed tenants include Zoe’sKitchen and Yogurt Land. The first building opened April 2017. The second building will be 10,600 square feet and construction began in spring 2017.Houston Community College is building the 112,000 square-foot West Houston Institute, adjacent to its existing Westchase District campus location at2811 Hayes Road.Galleria Uptown Area Development:Simon Property Group is spending $30 million to transform the former Saks Fifth Ave. store in The Houston Galleria into 110,000 sf of new retail andrestaurant space, now called Galleria VI. The 180-foot retail corridor connects The Galleria’s Neiman Marcus store to the new Saks Fifth Avenue Houstonstore. The renovation will cost $30 million, and will feature two floors of luxury retail, including 35 luxury retailers, several of whom are new toHouston. The Boulevard Project is designed to solve the area’s crushing mobility problem. The Boulevard Project consists of designing a grand boulevardwhile creating a beautifully landscaped pedestrian environment, preserving existing automobile lanes on Post Oak and substantially improving transit servicein order to address the continuing growth of Houston. The $200 million project ties the area into Metro’s Park & Ride system basically from I-10 and 290that will continue on to I-610. The six lanes boulevard will be constructed in three phases and it is estimated to be completed by August 2018.



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HOUSTON demographics



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neighborhood demographics



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Braeswood Plaza66 unit, Houston, texas apartment community



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information on brokerage relationships

Before working with a real estate broker, you should know that the duties of a broker depend on whom the broker represents. If you are a prospective seller or landlord (owner) or a prospective buyer or tenant (buyer), you should know that the broker who lists the property for sale or lease is the owner’s agent. A broker who acts as a subagent represents the owner in cooperation with the listing broker. A broker who acts as a buyer’s agent represents the buyer. A broker may act as an intermediary between the parties if the parties consent in writing. A broker can assist you in locating a property, preparing a contract or lease, or obtain financing without representing you. A broker is obligated by law to treat you honestly.

IF THE BROKER REPRESENTS THE OWNER:The broker becomes the owner’s agent by entering into an agreement with the owner, usually through a written listing agreement, or by agreeing to act as a subagent by accepting an offer of sub agency from the listing broker. A subagent may work in a different real estate office. A listing broker or subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first. The buyer should not tell the owner’s agent anything the buyer would not want the owner to know because an owner’s agent must disclose to the owner any material information known to the agent.

IF THE BROKER REPRESENTS THE BUYER:The broker becomes the buyer’s agent by entering into an agreement to represent the buyer, usually through a written buyer representation agreement. A buyer’s agent can assist the owner but does not represent the owner and must place the interests of the buyer first. The owner should not tell a buyer’s agent anything the owner would not want the buyer to know because a buyer’s agent must disclose to the buyer any material information known to the agent.

IF THE BROKER ACTS AS AN INTERMEDIARY:A broker may act as an intermediary between the parties if the broker complies with The Texas Real Estate License Act. The broker must obtain the written consent of each party to the transaction to act as an intermediary. The written consent must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker’s obligations as an intermediary. The broker is required to treat each party honestly and fairly and to comply with The Texas Real Estate License Act. A broker who acts as an intermediary in a transaction: (1) shall treat all parties honestly;(2) may not disclose that the owner will accept a price less than the asking price unless authorized in writing to do so by the owner;(3) may not disclose that the buyer will pay a price greater than the price submitted in a written offer unless authorized in writing to do so by the buyer; and(4) may not disclose any confidential information or any information that a party specifically instructs the broker in writing not to disclose unless authorized in writing to disclose the information or required to do so by The Texas Real Estate License Act or a court order or if the information materially relates to the condition of the property.With the parties’ consent, a broker acting as an intermediary between the parties may appoint a person who is licensed under The Texas Real Estate License Act and associated with the broker to communicate with and carry out instructions of one party and another person who is licensed under that Act and associated with the broker to communicate with and carry out instructions of the other party.

If you choose to have a broker represent you, you should enter into a written agreement with the broker that clearly establishes the broker’s obligations and your obligations. The agreement should state how and by whom the broker will be paid. You have the right to choose the type of representation , if any, you wish to receive. Your payment of a fee to a broker does not necessarily establish that the broker represents you. If you have any questions regarding the duties and responsibilities of the broker, you should resolve those questions before proceeding.

Real estate licensee asks that you acknowledge receipt of this information about brokerage services for the licensee’s records.

_______________________________________________________________________________________________________________________________________ Buyer, Seller, Landlord or Tenant Date



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disclaimer

The information provided in this offering memorandum is either provided to us by the owner of the property or obtained from sources thatwe deem reliable. We have no reason to doubt its accuracy but we do not guarantee it. It is the responsibility of the reviewer to verifyavailability and specific property information. Availability, pricing and terms are subject to change without notice. Owners reserve the rightto withdraw their listing, without any notice at any time during the marketing period.

Houston Income Properties, Inc. has not determined whether the property complies with deed restrictions or city or other municipalitylicensing or ordinances. THE PROSPECTIVE BUYER SHOULD CAREFULLY VERIFY EACH ITEM OF INCOME, EXPENSE AND PERFORM OR HAVEPERFORMED ANY INSPECTIONS TO VERIFY POSSIBLE CONTAMINATION BY ASBESTOS, LEAD PAINT, MOLD OR ANY OTHER HAZARDOUSSUBSTANCES.

While the Owners and Houston Income Properties, Inc. have no reason to believe that the information provided herein or in subsequentinformation updates delivered to potential purchasers contains any material inaccuracies, neither the Owners nor Houston IncomeProperties, Inc. nor any of the Owners’ or Houston Income Properties, Inc.'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, asto the validity, accuracy or completeness of the information provided or to be provided, and nothing herein shall be deemed to constitute arepresentation, warranty or promise by any such parties as to the future performance of the Property or any other matters set forth herein.We do not guarantee or warrant the accuracy, reliability, completeness, or usefulness of the information in this offering memorandum or onmarketing websites, whether ours or other industry sites to which we link, it is the prospective purchasers responsibility to confirm accuracyand completeness. Any use of or reliance upon information from this memorandum or from company websites or a linked site is at theuser's risk.

The information contained in this offering memorandum does not constitute legal, accounting, or other professional advice. Prospectivepurchasers are not to construe the contents of this Offering or any prior or subsequent information communications from the Owners or anyof their respective officers, employees or agents as legal, tax or other advice. Prior to purchasing, prospective purchasers should consult withtheir own legal counsel, personal accountants and tax advisors to determine the consequences of an investment in the Property and arriveat an independent evaluation of such investment.

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



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exclusive offering memorandum

For More Information Please Contact:

Jim Hurd - President - Listing [email protected]

Bishale Patel - Vice President Sales - [email protected]

Peter Huang - [email protected]

HOUSTON OFFICE6363 WoodwaySuite 370Houston, TX 77057T - 713-783-6262F - 713-783-6767

AUSTIN OFFICE912 S. CAPITAL OF TEXAS HWY

Suite 360Austin, TX 78746T - 512-610-8000F - 512-640-8001

Gwyn VonHeeder - Vice President Operations - [email protected]

Mitul Patel - [email protected]

Lucas Fertitta - [email protected]



braeswood plaza - loopnet...of bellaire is almost100% high‐end and as available construction sites...

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