offering memorandum...back online. • no deferred maintenance.little or • owing and dense...

INVESTMENT SALES GROUP

Chiquita Apartments

OFFERING MEMORANDUM

MICHAEL TRECHA, Advisor

972-432-4373 • [email protected] FRANKS, CCIM, Managing Director

972-916-9397 • [email protected]

FOR MORE INFORMATION, CONTACT:


MICHAEL TRECHA972-432-4373 • [email protected]

TODD FRANKS, CCIM972-916-9397 • [email protected]

6320 LBJ Freeway, Suite 228Dallas, TX 75240

214-206-9559 • svn-isg.com


PROPERTY OVERVIEWExecutive Summary .............................6Location Highlights ..............................7Property Details ...................................8Amenities .............................................9

PROPERTY PHOTOSAerial View | Site Outline ...................12Property Photos .................................14

FINANCIAL OVERVIEWUnit Mix ..............................................20 Average Rent Comparison ................21Trending Analysis ...............................22Capital Expenditure ...........................228-Year Cash Flow Analysis ................24

COMPARABLESRent Comparables .............................28Average Rent Comparison ................29

LOCATION OVERVIEWArea Highlights - Aerial View .............32Demographic Overview .....................34

MARKET OVERVIEW Economic Overview...........................38

LEGAL INFORMATIONDisclaimer ..........................................43Disclosure ..........................................44

TABLE OF CONTENTS

CHIQUITAAPARTMENTSOFFERING MEMORANDUM

4 SVN | INVESTMENT SALES GROUP 214-206-9559 SVN-ISG.COM

CHIQUITA APARTMENTS OFERING MEMORANDUM 5

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EXECUTIVE SUMMARY

CHIQUITA APARTMENTS OVERVIEWPROPERTY OVERVIEWSVN | Investment Sales Group is proud to announce the exclusive listing of Chiquita Apartments. Chiquita is located in Cockrell Hill, a small suburban enclave in Southwest Dallas County in the Kiest submarket. The submarket continues to attract investors with workforce property sales reflecting an increase of 33.7% from 2017-2018.

Built in 1962 and renovated in 2017-2018, Chiquita is a community of three, two-story buildings and one small laundry facility building. The buildings are of wood frame construction with brick veneers underneath flat roofs. The property's unit mix is comprised of 24 two-bedroom/two-bath units.

EXECUTIVE SUMMARY

INVESTMENT HIGHLIGHTS• Chiquita boasts an average occupancy of 92% and

an average rental rate of $988.

• Value–add opportunity through upgrading five remaining classic units and bringing laundry facility back online.

• Little or no deferred maintenance.

• Growing and dense industrial/manufacturing area within one mile of property reflecting economic growth in the area.

• Sale prices in the Keist submarket increased from $69,514 per unit in 2017 to $80,397 per unit in 2018. This upward trend is expected to continue through 2019. (See graph to right.)

SALE PRICE $1,700,000

PROPERTY ADDRESS 3955 Mather Court Dallas, Texas

NUMBER OF UNITS 24

RENTABLE SF 18,720 SF

LOT SIZE 0.95 AC +/-

YEAR BUILT | RENOVATED 1962 | 2017-18

ZONING Multifamily

MARKET Dallas | Fort Worth

SUBMARKET Keist

LOCATION Located apx. 10 miles west of Downtown Dallas

Avg Sale price/unit in 2017: $69,514

Avg Sale price/unit in 2018: $80,397

Keist Submarket

Submarket Sale Price Activity

Rare opportunity to acquire value-add opportunity in

Southwest Dallas County submarket.

The Dallas-Fort Worth MSA was named the #15 Best Place to Live and the #11 Best Place to retire out of 125 Metro Areas for 2018 (U.S. News and World Report).

Source: Yardi Matrix


LOCATION HIGHLIGHTS

STRONG LOCATIONChiquita is located in a highly dense residential neighborhood. Chiquita offers many families the convenience of nearby schools. Anson Jones Elementary is located across the street on the south side of the property while Raul Quintanilla Middle School and Sunset High School are located within two miles.

Pinnacle Park, an 880-acre mixed-use site comprised of industrial, commercial, and residential properties is located a half-mile north of Chiquita. This site economically enhances the area by providing jobs to 1,620 nearby residents.

Mountain Creek Lake, home to the Grand Prairie Armed Forces Reserve Complex, is located approximately three miles west of Chiquita. This facility is shared by the Texas Air National Guard, Army Reserves, and Marine Forces Reserve. Other

LOCATION HIGHLIGHTS• Strategically located in close proximity to

Interstate 30 allowing commuters easy access to the entire DFW metro.

• Excellent access to public transportation.

• Anson Jones Elementary School is located directly across the street and is undergoing major interior and exterior renovations.

Dr. Pepper Snapple

Cequent Performance

Products

RPG Innovations

Hilti Distribution Center

Geodis

Quality Logistics Systems

Danco

Air Vent

Walmart

Lowe's

Home Depot

NEARBY MAJOR EMPLOYERS

local attractions include Lone Star Park which is home to DFW' s horse racing community and Joe Pool Lake.

• Raul Quintanilla Middle School and Sunset High School are located less than two miles from the property.

• 6 miles west of Dallas CBD

• 3.3 miles west of Bishop Arts District

• 2.2 miles from I-30

• 2.5 miles from TX-12 Loop


UTILITY METERINGElectricity Individual Metered

Water Master Metered

GasMaster Metered (Laundry/Hot Water Only)

Trash Paid by Owner

PROPERTY DETAILS

SITE DESCRIPTIONProperty Name Chiquita

Address3955 Mather Court Dallas, TX 75211

County Dallas

CAD Account #s: 00000348280000000

Number of Units: 24

Lot Size 0.95 AC

Number of Buildings Three (3) plus laundry

Density 25.15 Units Per Acre

Laundry Onsite Laundry Facility*

* Not currently operational. Upside bringing it back online.

CONSTRUCTIONYear Built | Renovated 1962 | 2018

Number of Buildings 3 Buildings

Number of Stories Two Stories

Foundation Concrete Slab

Framing Wood

Roof Flat

Building Exterior Brick Veneer

Parking Ample Parking

MECHANICAL SYSTEMSHVAC Individual - Electric

Water Heater Individual - Gas

Electrical Wiring Copper

STAFFManagement One: Part-Time

Maintenance One: Part-Time


AMENITIES

UNIT AMENITIES• Black and Stainless Steel

Applicance Packages

• New Cabinetry

• New Flooring

• New Countertops

• New Fixtures

• Ceiling Fans

• Dishwashers

• Microwaves

• Pet Friendly

COMMUNITY AMENITIES• Onsite Laundry Facility*

• Ample Parking

• Near Public Transportation

• Directly across the street from Anson Jones Elementary School

• Within two miles of Raul Quintanilla Middle School and Sunset High School

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AERIAL VIEW

CHIQUITAAPARTMENTS

ORLANDO COURT

MATHER COURT


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AERIAL VIEW

Site boundary for visual purposes only.

MERIDITH AVENUE

ANSON JONES ELEMENTARY

SCHOOL

SOUTH ALBROOK STREET


PROPERTY PHOTOS

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UNIT MIX

FINANCIAL OVERVIEW

Two Bedroom100%

Type # Units SF/Unit Total SFEffective

Rent | UnitEffective

Rent | PSFMarket

Rent | UnitMarket

Rent | PSFPro Forma Rent | Unit

Pro Forma Rent | PSF

2/1 downstairs 12 780 9,360 $948 $1.22 $1,000 $1.28 $1,020 $1.31

2/1 upstairs 12 780 9,360 $904 $1.16 $975 $1.25 $975 $1.28

Totals/ Averages 24 780 18,720 $926 $1.19 $988 $1.27 $1,008 $1.29


890

900

910

920

930

940

950

960

970

980

990

1000

Two Bedroom

AVERAGE RENT COMPARISON

UNIT MIX

$926

Two Bedroom

$988 $1,008

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Monthly Rent per Unit


As of December 2018 T-12 T-6 T-3 T-1 Pro FormaAnnualized $/Unit Annualized $/Unit Annualized $/Unit Annualized $/Unit Projection $/Unit

INCOME

Potential Market Rent $284,400 $11,850 $284,400 $11,850 $284,400 $11,850 $284,400 $11,850 $290,160 $12,090

Loss-to-Lease/Gain-to-Lease (17,662) (736) (17,662) (736) (17,662) (736) (17,662) (736) 0 0

Gross Potential Revenue $266,738 $11,114 $266,738 $11,114 $266,738 $11,114 $266,738 $11,114 $290,160 $12,090

Economic Vacancy (34,437) (1,435) (36,982) (1,541) (27,326) (1,139) (5,486) (229) (23,213) (967)

Base Rental Revenue $232,301 $9,679 $229,756 $9,573 $239,412 $9,976 $261,252 $10,886 $266,947 $11,123

RUB Income 0 0 0 0 0 0 0 0 10,560 440

Other Income 0 0 0 0 0 0 0 0 2,880 120

Total Other Income $0 $0 $0 $0 $0 $0 $0 $0 $13,440 $560

Effective Gross Revenue $232,301 $9,679 $229,756 $9,573 $239,412 $9,976 $261,252 $10,886 $280,387 $11,683

EXPENSES

Repairs & Maintenance $11,763 $490 $11,763 $490 $11,763 $490 $11,763 $490 $11,763 $490

Contract Services 7,858 327 7,858 327 7,858 327 7,858 327 7,858 327

Payroll 24,000 1,000 24,000 1,000 24,000 1,000 24,000 1,000 24,000 1,000

Administration/Misc. 5,179 216 5,179 216 5,179 216 5,179 216 5,179 216

Electricity 20,728 864 20,728 864 20,728 864 20,728 864 20,728 864

Water & Sewer 17,128 714 17,128 714 17,128 714 17,128 714 17,128 714

Gas 3,552 148 3,552 148 3,552 148 3,552 148 3,552 148

Real Estate Taxes 36,277 1,512 36,277 1,512 36,277 1,512 36,277 1,512 36,277 1,512

Insurance 6,716 280 6,716 280 6,716 280 6,716 280 6,716 280

Management Fee (5%) 11,615 484 11,488 479 11,971 499 13,063 544 14,019 584

Total Expenses $144,816 $6,034 $144,689 $6,029 $145,171 $6,049 $146,263 $6,094 $147,220 $6,134

Net Operating Income $87,485 $85,067 $94,241 $114,989 $133,167 * Operating expenses are the Pro Forma expenses.

TRENDING ANALYSIS

FINANCIAL OVERVIEW

CAPITAL EXPENDITURES 2017-2018

The owner has invested more than $170k in capital expenditures for interior and exterior upgrades. An investor has the opportunity to create further value through continued improvements to the subject property.


As of December 2018 T-12 T-6 T-3 T-1 Pro FormaAnnualized $/Unit Annualized $/Unit Annualized $/Unit Annualized $/Unit Projection $/Unit

INCOME

Potential Market Rent $284,400 $11,850 $284,400 $11,850 $284,400 $11,850 $284,400 $11,850 $290,160 $12,090

Loss-to-Lease/Gain-to-Lease (17,662) (736) (17,662) (736) (17,662) (736) (17,662) (736) 0 0

Gross Potential Revenue $266,738 $11,114 $266,738 $11,114 $266,738 $11,114 $266,738 $11,114 $290,160 $12,090

Economic Vacancy (34,437) (1,435) (36,982) (1,541) (27,326) (1,139) (5,486) (229) (23,213) (967)

Base Rental Revenue $232,301 $9,679 $229,756 $9,573 $239,412 $9,976 $261,252 $10,886 $266,947 $11,123

RUB Income 0 0 0 0 0 0 0 0 10,560 440

Other Income 0 0 0 0 0 0 0 0 2,880 120

Total Other Income $0 $0 $0 $0 $0 $0 $0 $0 $13,440 $560

Effective Gross Revenue $232,301 $9,679 $229,756 $9,573 $239,412 $9,976 $261,252 $10,886 $280,387 $11,683

EXPENSES

Repairs & Maintenance $11,763 $490 $11,763 $490 $11,763 $490 $11,763 $490 $11,763 $490

Contract Services 7,858 327 7,858 327 7,858 327 7,858 327 7,858 327

Payroll 24,000 1,000 24,000 1,000 24,000 1,000 24,000 1,000 24,000 1,000

Administration/Misc. 5,179 216 5,179 216 5,179 216 5,179 216 5,179 216

Electricity 20,728 864 20,728 864 20,728 864 20,728 864 20,728 864

Water & Sewer 17,128 714 17,128 714 17,128 714 17,128 714 17,128 714

Gas 3,552 148 3,552 148 3,552 148 3,552 148 3,552 148

Real Estate Taxes 36,277 1,512 36,277 1,512 36,277 1,512 36,277 1,512 36,277 1,512

Insurance 6,716 280 6,716 280 6,716 280 6,716 280 6,716 280

Management Fee (5%) 11,615 484 11,488 479 11,971 499 13,063 544 14,019 584

Total Expenses $144,816 $6,034 $144,689 $6,029 $145,171 $6,049 $146,263 $6,094 $147,220 $6,134

Net Operating Income $87,485 $85,067 $94,241 $114,989 $133,167 * Operating expenses are the Pro Forma expenses.

TRENDING ANALYSIS

2017Contract Services $46,986Materials $77,362

2018Contract Services $10,079Materials $37,076

Total $171,503


8-YEAR CASH FLOW ANALYSIS

FINANCIAL OVERVIEW

1. Income. Gross Potential Revenue is based on rental rates shown in the unit mix table. Market rents grow at 3.0% after Year 1. Loss-to-lease is currently 6.2%.2. Vacancy. Vacancy is currently 9.6%. Vacancy is projected to be 8.0% after Year 1 and thereafter.3. Other Income. Other income is projected to be at $2,880 and grows 3.0% per year. Other income likely to be higher on the laundry income, late fees, application fees, etc.4. RUB. Implemented $440/unit water utility reimbursement.

5. Repairs & Maintenance. Increased Repairs & Maintenance expense to be $490 per unit, and grows 3.0% per year.6. Contract Services. Contract services expense is projected to be at $327 per unit, and grows 3.0% per year.7. Payroll. Personnel expense is projected to be at $1,000 per unit, and grows 3.0% per year as this smaller asset can be managed remotely.8. Administrative Expenses. Administrative expense is projected to be at $216 per unit, and grows 3.0% per year.9. Electricity. Electricity expense is based on T-12 historical expenses

NOTES

CURRENT YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8INCOMEPotential Market Rent $284,400 $287,280 $290,160 $298,865 $307,831 $317,066 $326,578 $336,375 $346,466

(Loss to Lease) / Gain to Lease (17,662) 6.2% (8,831) 3.1% (1,440) 0.5% (1,483) 0.5% (1,528) 0.5% (1,574) 0.5% (1,621) 0.5% (1,669) 0.5% (1,719) 0.5%

Gross Potential Revenue1 $266,738 $278,449 $288,720 $297,382 $306,303 $315,492 $324,957 $334,706 $344,747

RENTAL LOSSESEconomic Vacancy2 (27,326) 9.6% (25,269) 8.8% (23,213) 8.0% (23,909) 8.0% (24,626) 8.0% (25,365) 8.0% (26,126) 8.0% (26,910) 8.0% (27,717) 8.0%

Base Rental Revenue $239,412 $253,180 $265,507 $273,472 $281,677 $290,127 $298,831 $307,796 $317,029

OTHER INCOMEOther Residential Income3 0 $0 1,440 $60 2,880 $120 2,966 $124 3,055 $127 3,147 $131 3,241 $135 3,339 $139 3,439 $143

RUB Income4 0 $0 5,280 $220 10,560 $440 10,877 $453 11,203 $467 11,539 $481 11,885 $495 12,242 $510 12,609 $525

Total Other Income $0 $6,720 $13,440 $13,843 $14,258 $14,686 $15,127 $15,581 $16,048 Effective Gross Revenue $239,412 $259,900 $278,947 $287,316 $295,935 $304,813 $313,958 $323,376 $333,078

EXPENSESRepairs & Maintenance5 $3,435 $143 $11,763 $490 $11,763 $490 $12,115 $505 $12,479 $520 $12,853 $536 $13,239 $552 $13,636 $568 $14,045 $585

Contract Services6 5,133 214 7,858 327 7,858 327 8,094 337 8,337 347 8,587 358 8,845 369 9,110 380 9,383 391

Payroll7 49,865 2,078 24,000 1,000 24,000 1,000 24,720 1,030 25,462 1,061 26,225 1,093 27,012 1,126 27,823 1,159 28,657 1,194

Administration/Misc.8 112 5 5,179 216 5,179 216 5,334 222 5,494 229 5,659 236 5,829 243 6,004 250 6,184 258

Electricity9 20,728 864 20,728 864 20,728 864 21,350 890 21,991 916 22,650 944 23,330 972 24,030 1,001 24,751 1,031

Water & Sewer10 17,128 714 17,128 714 17,128 714 17,641 735 18,171 757 18,716 780 19,277 803 19,856 827 20,451 852

Gas11 3,552 148 3,552 148 3,552 148 3,658 152 3,768 157 3,881 162 3,998 167 4,118 172 4,241 177

Real Estate Taxes12 22,193 925 36,277 1,512 36,277 1,512 37,365 1,557 38,486 1,604 39,641 1,652 40,830 1,701 42,055 1,752 43,316 1,805

Insurance13 7,922 330 6,716 280 6,716 280 6,918 288 7,125 297 7,339 306 7,559 315 7,786 324 8,020 334

Management Fee (5%)14 0 0 12,995 541 13,947 581 14,366 599 14,797 617 15,241 635 15,698 654 16,169 674 16,654 694

Total Operating Expenses $130,068 $5,420 $146,196 $6,091 $147,148 $6,131 $151,563 $6,315 $156,109 $6,505 $160,793 $6,700 $165,617 $6,901 $170,585 $7,108 $175,703 $7,321Replacement Reserves15 6,000 $250 6,000 $250 6,000 $250 6,000 $250 6,000 $250 6,000 $250 6,000 $250 6,000 $250

Net Operating Income $109,344 6.4% $107,704 6.3% $125,799 7.4% $129,753 7.6% $133,826 7.9% $138,020 8.1% $142,341 8.4% $146,791 8.6% $151,375 8.9%

DEBT SERVICE YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8Loan Payments (82,134) (82,134) (82,134) (82,134) (82,134) (82,134) (82,134) (82,134)

Total Debt Service Amount ($82,134) ($82,134) ($82,134) ($82,134) ($82,134) ($82,134) ($82,134) ($82,134)

NET CASH FLOW $25,570 5.7% $43,665 9.7% $47,619 10.6% $51,692 11.5% $55,887 12.4% $60,207 13.4% $64,657 14.4% $69,241 15.4%

Principle Reduction 18,811 19,773 20,785 21,848 22,966 24,141 25,376 26,675

Total Return $44,381 9.9% $63,439 14.1% $68,404 15.2% $73,540 16.3% $78,853 17.5% $84,348 18.7% $90,034 20.0% $95,916 21.3%


LOAN INFO

CASH FLOW ANALYSIS

ASSUMPTIONSLikely Sale Price $1,700,000

Price/Unit $70,833

Price/SF $90.81

Total Units 24

Total Costs $1,700,000

Pro Forma Cap Rate 7.00%

NEW LOAN ASSUMPTIONSLoan Amount $1,275,000

Date of Origination 6/25/19

Interest Rate 5.00%

Amortization (Years) 30

Loan Constant 6.44%

Maturity Date 6/25/2029

CLOSING ASSUMPTIONSEstimated Closing Date 6/25/19

Loan Amount at Closing $1,275,000

Loan Percentage 75%

Term (Months) 120

Equity Requirement (includes 2% for origin.) $450,500

REVERSION - 5TH YEAREstimated Selling Price $2,253,981

Less: Sales Expenses (2%) ($45,080)

Less: Principal Outstanding ($1,094,624)

Net Proceeds $1,114,277

CURRENT YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8INCOMEPotential Market Rent $284,400 $287,280 $290,160 $298,865 $307,831 $317,066 $326,578 $336,375 $346,466

(Loss to Lease) / Gain to Lease (17,662) 6.2% (8,831) 3.1% (1,440) 0.5% (1,483) 0.5% (1,528) 0.5% (1,574) 0.5% (1,621) 0.5% (1,669) 0.5% (1,719) 0.5%

Gross Potential Revenue1 $266,738 $278,449 $288,720 $297,382 $306,303 $315,492 $324,957 $334,706 $344,747

RENTAL LOSSESEconomic Vacancy2 (27,326) 9.6% (25,269) 8.8% (23,213) 8.0% (23,909) 8.0% (24,626) 8.0% (25,365) 8.0% (26,126) 8.0% (26,910) 8.0% (27,717) 8.0%

Base Rental Revenue $239,412 $253,180 $265,507 $273,472 $281,677 $290,127 $298,831 $307,796 $317,029

OTHER INCOMEOther Residential Income3 0 $0 1,440 $60 2,880 $120 2,966 $124 3,055 $127 3,147 $131 3,241 $135 3,339 $139 3,439 $143

RUB Income4 0 $0 5,280 $220 10,560 $440 10,877 $453 11,203 $467 11,539 $481 11,885 $495 12,242 $510 12,609 $525

Total Other Income $0 $6,720 $13,440 $13,843 $14,258 $14,686 $15,127 $15,581 $16,048 Effective Gross Revenue $239,412 $259,900 $278,947 $287,316 $295,935 $304,813 $313,958 $323,376 $333,078

EXPENSESRepairs & Maintenance5 $3,435 $143 $11,763 $490 $11,763 $490 $12,115 $505 $12,479 $520 $12,853 $536 $13,239 $552 $13,636 $568 $14,045 $585

Contract Services6 5,133 214 7,858 327 7,858 327 8,094 337 8,337 347 8,587 358 8,845 369 9,110 380 9,383 391

Payroll7 49,865 2,078 24,000 1,000 24,000 1,000 24,720 1,030 25,462 1,061 26,225 1,093 27,012 1,126 27,823 1,159 28,657 1,194

Administration/Misc.8 112 5 5,179 216 5,179 216 5,334 222 5,494 229 5,659 236 5,829 243 6,004 250 6,184 258

Electricity9 20,728 864 20,728 864 20,728 864 21,350 890 21,991 916 22,650 944 23,330 972 24,030 1,001 24,751 1,031

Water & Sewer10 17,128 714 17,128 714 17,128 714 17,641 735 18,171 757 18,716 780 19,277 803 19,856 827 20,451 852

Gas11 3,552 148 3,552 148 3,552 148 3,658 152 3,768 157 3,881 162 3,998 167 4,118 172 4,241 177

Real Estate Taxes12 22,193 925 36,277 1,512 36,277 1,512 37,365 1,557 38,486 1,604 39,641 1,652 40,830 1,701 42,055 1,752 43,316 1,805

Insurance13 7,922 330 6,716 280 6,716 280 6,918 288 7,125 297 7,339 306 7,559 315 7,786 324 8,020 334

Management Fee (5%)14 0 0 12,995 541 13,947 581 14,366 599 14,797 617 15,241 635 15,698 654 16,169 674 16,654 694

Total Operating Expenses $130,068 $5,420 $146,196 $6,091 $147,148 $6,131 $151,563 $6,315 $156,109 $6,505 $160,793 $6,700 $165,617 $6,901 $170,585 $7,108 $175,703 $7,321Replacement Reserves15 6,000 $250 6,000 $250 6,000 $250 6,000 $250 6,000 $250 6,000 $250 6,000 $250 6,000 $250

Net Operating Income $109,344 6.4% $107,704 6.3% $125,799 7.4% $129,753 7.6% $133,826 7.9% $138,020 8.1% $142,341 8.4% $146,791 8.6% $151,375 8.9%

ASSUMPTION YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8Rental Inflation 1.01% 1.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%Vacancy/Concession/Credit Loss 11.87% 8.50% 8.50% 8.50% 8.50% 8.50% 8.50% 8.50%Other Income Inflation 0.00% 100.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%Expenses Inflation 7.46% 0.82% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%Real Estate Tax Inflation 63.46% 0.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%

DEBT SERVICE YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8Loan Payments (82,134) (82,134) (82,134) (82,134) (82,134) (82,134) (82,134) (82,134)

Total Debt Service Amount ($82,134) ($82,134) ($82,134) ($82,134) ($82,134) ($82,134) ($82,134) ($82,134)

NET CASH FLOW $25,570 5.7% $43,665 9.7% $47,619 10.6% $51,692 11.5% $55,887 12.4% $60,207 13.4% $64,657 14.4% $69,241 15.4%

Principle Reduction 18,811 19,773 20,785 21,848 22,966 24,141 25,376 26,675

Total Return $44,381 9.9% $63,439 14.1% $68,404 15.2% $73,540 16.3% $78,853 17.5% $84,348 18.7% $90,034 20.0% $95,916 21.3%

RETURN & DSCR SUMMARY YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8Return On Equity 5.68% 9.69% 10.57% 11.47% 12.41% 13.36% 14.35% 15.37%Debt Service Coverage 1.31 1.53 1.58 1.63 1.68 1.73 1.79 1.84

and grows 3.0% per year.10. Water & Sewer. Water expense is based on T-12 historical expenses and grows 3.0% per year.11. Gas. Gas expense is based on T-12 historical expenses and grows 3.0% per year.12. Real Estate Taxes. Increased real estate taxes to 75% of the transaction value of $1,700,000 multiplied by 2018 tax rate of 2.85% .Taxes grow 3.0% per year.13. Insurance. Decreased insurance to $280 per unit per internal

insurance calculation. The expense grows 3.0% per year.14. Management Fee. Property management fee is projected to be 5.0% of effective gross revenue.15. Replacement Reserves. Replacement reserves are projected to be $250 per unit annually. * Projected income and expenses in the calculations are according to 2018 National Apartment Association survey of income and expenses for Dallas submarket.

Downtown DallasSix Miles from Subject Property

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RENT COMPARABLES

Map# Property Name

Total Units

Average SF/Unit

OccupancyRate

YearBuilt

Avg. Effective Rent/Unit

Avg. Effective Rent PSF

Avg. Market Rent/Unit

Avg. Market Rent PSF

1 Oakwood 101 830 94% 1968 $938 $1.13 $938 $1.13

2 Sonoma 60 850 100% 1964 $919 $1.08 $919 $1.08

3 Moulin Rogue 141 872 97% 1968 $1,114 $1.28 $1,114 $1.28

4 Telstar 100 714 95% 1969 $910 $1.27 $910 $1.27

5 Cedars Square 116 662 93% 1963 $876 $1.32 $876 $1.32

6 Casa De Loma 102 831 90% 1964 $1,045 $1.26 $1,045 $1.26

7 French Colony 94 746 94% 1963 $923 $1.24 $923 $1.24

Average 102 786 95% $970 $1.22 $970 $1.22

★ Chiquita 24 780 92% 1962 $926 $1.19 $988 $1.27

Variance (78) (6) (3%) ($44) ($0.03) $18 $0.05

46

8

9CHIQUITA

★

7

21

3

4

5

6


$1.19 $1.22$1.13

$1.08

$1.28 $1.27 $1.32$1.26 $1.24

$0.00

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

$1.40

$500

$600

$700

$800

$900

$1,000

$1,100

$1,200

Chiquita SurveyAverage

Oakwood Sonoma MoulinRogue

Telstar CedarsSquare

Casa DeLoma

FrenchColony

Average EFF Rent/Unit Average EFF Rent/Sf

RENT COMPARABLES

AVERAGE RENT COMPARISON

$926$970 $938 $919

$1,114

$910$876

$1,045

$923

Average Effective Rent / Unit Average Effective Rent / PSF

AVG EFFECTIVERENT/UNIT

AVG. EFFECTIVE RENT/PSF

RENT COMPARISON BY UNIT TYPE Pro Forma Projections

Map # Property Bed

Bath

Total Units

UnitSF

Avg. Effective Rent/Unit

Avg. Effective Rent PSF

Avg. Market Rent/Unit

Avg. Market Rent PSF Rent Rent/SF

Chiquita Downstairs 2 1 12 780 $948 $1.22 $1,000 $1.28 $1,020 $1.31

Chiquita Upstairs 2 1 12 780 $904 $1.16 $975 $1.25 $995 $1.28

1 Oakwood 2 1 18 808 $950 $1.18 $950 $1.18

2 Sonoma 2 1 10 800 $923 $1.15 $923 $1.15

3 Cedar Square 2 1 40 722 $910 $1.26 $910 $1.26

4 Cedar Square 2 1 8 792 $930 $1.17 $930 $1.17

5 Telstar 2 1 22 862 $1,015 $1.18 $1,015 $1.18

6 Casa De Loma 2 1 44 832 $1,050 $1.26 $1,050 $1.26

7 French Colony 2 1 50 880 $975 $1.11 $975 $1.11

Average $976 $1.19 $976 $1.19


Downtown Fort Worth28 Miles from Subject Property


LO

CA

TIO

N O

VE

RV

IEW


AREA HIGHLIGHTS

12

180 W DAVIS ST

MEREDITH AVE

W JEFFERSON BLVD

Dallas National Golf Club

S COC

KREL

L RDMt. St. Michael >

Catholic School

St. Clara of Assisi > Catholic Church

and Academy

Dr Pepper >Snapple Group

Cequent Performance

Products>

Danco >

Neiman >Marcus Direct

>

>

< Arcadia Park Elementary School

Celestino Maurico Soto > Jr. Elementary School

FedEx Freight>

< Stitch FixMIssion Foods >


AREA HIGHLIGHTS

ChiquitaApartments

FORT WORTH AVE

MEREDITH AVE

S WES

TMOR

ELAN

D RD

< Anson Jones Elementary School

S COC

KREL

L RD

Cequent Performance

Products>

RPG Innovations>

Geodis

Danco > < Quality Logistics Systems

< Air Vent

Hilti Dist. Center >

Kehe Food Distributors

>

Pinnacle Industrial Center

>

< Golden Rule Charter School

< Raul Quintanilla Sr. Middle School

< Stevens Park ElementarySchool

< George Peabody Elementary School

HAMP

TON R

D

Sunset High School >

N

ONE MILE


AREA OVERVIEW

Five Mile Radius

Three Mile Radius

One Mile Radius

ChiquitaApartments


DEMOGRAPHIC OVERVIEW

Five Mile Radius

KEY FACTS

20,525Population

28.0

Median Age

3.8

AverageHousehold Size

$40,330Median Household

Income

EDUCATION

52%

No HighSchool

Diploma 28%High School

Graduate

15%Some College 5%

Bachelor's/Grad/ProfDegree

BUSINESS

282Total Businesses

2,184Total Employees

EMPLOYMENT

36%White Collar

47%Blue Collar

16%Services

5.1%

UnemploymentRate

INCOME

$40,330

Median HouseholdIncome

$13,073

Per Capita Income

$25,482

Median Net Worth

Households By IncomeThe largest group: $50,000 - $74,999 (21.3%)

The smallest group: $200,000+ (0.6%)Indicator Value Difference

<$15,000

$15,000 - $24,999

$25,000 - $34,999

$35,000 - $49,999

$50,000 - $74,999

$75,000 - $99,999

$100,000 - $149,999

$150,000 - $199,999

$200,000+

10.0%

13.6%

17.1%

20.8%

21.3%

8.3%

7.0%

1.4%

0.6%

-0.6%

+3.5%

+6.3%

+6.8%

+2.8%

-2.7%

-5.8%

-3.8%

-6.4%

Bars show deviation from

Dallas County

KEY FACTS

129,845Population

29.4

Median Age

3.5



Income

EDUCATION

43%

No HighSchool


Graduate

18%Some College 12%


BUSINESS

2,307Total Businesses


EMPLOYMENT

41%White Collar

40%Blue Collar

18%Services

5.8%

UnemploymentRate

INCOME

$40,751


$15,879

Per Capita Income

$24,036

Median Net Worth



<$15,000

$15,000 - $24,999

$25,000 - $34,999

$35,000 - $49,999

$50,000 - $74,999

$75,000 - $99,999

$100,000 - $149,999

$150,000 - $199,999

$200,000+

14.5%

13.1%

14.1%

17.7%

19.3%

9.7%

7.7%

2.0%

1.9%

+3.9%

+3.0%

+3.3%

+3.7%

+0.8%

-1.3%

-5.1%

-3.2%

-5.1%


Dallas County

KEY FACTS

265,910Population

30.1

Median Age

3.4



Income

EDUCATION

39%

No HighSchool


Graduate

20%Some College 13%


BUSINESS



EMPLOYMENT

44%White Collar

37%Blue Collar

19%Services

6.2%

UnemploymentRate

INCOME

$38,458


$17,118

Per Capita Income

$20,487

Median Net Worth



<$15,000

$15,000 - $24,999

$25,000 - $34,999

$35,000 - $49,999

$50,000 - $74,999

$75,000 - $99,999

$100,000 - $149,999

$150,000 - $199,999

$200,000+

16.6%

13.9%

14.4%

17.0%

17.7%

8.9%

7.3%

2.3%

1.7%

+6.0%

+3.8%

+3.6%

+3.0%

-0.8%

-2.1%

-5.5%

-2.9%

-5.3%


Dallas County

ONE MILE RADIUS THREE MILE RADIUS FIVE MILE RADIUS

KEY FACTS

20,525Population

28.0

Median Age

3.8



Income

EDUCATION

52%

No HighSchool


Graduate

15%Some College 5%


BUSINESS

282Total Businesses


EMPLOYMENT

36%White Collar

47%Blue Collar

16%Services

5.1%

UnemploymentRate

INCOME

$40,330


$13,073

Per Capita Income

$25,482

Median Net Worth



<$15,000

$15,000 - $24,999

$25,000 - $34,999

$35,000 - $49,999

$50,000 - $74,999

$75,000 - $99,999

$100,000 - $149,999

$150,000 - $199,999

$200,000+

10.0%

13.6%

17.1%

20.8%

21.3%

8.3%

7.0%

1.4%

0.6%

-0.6%

+3.5%

+6.3%

+6.8%

+2.8%

-2.7%

-5.8%

-3.8%

-6.4%


Dallas County

KEY FACTS

129,845Population

29.4

Median Age

3.5



Income

EDUCATION

43%

No HighSchool


Graduate

18%Some College 12%


BUSINESS



EMPLOYMENT

41%White Collar

40%Blue Collar

18%Services

5.8%

UnemploymentRate

INCOME

$40,751


$15,879

Per Capita Income

$24,036

Median Net Worth



<$15,000

$15,000 - $24,999

$25,000 - $34,999

$35,000 - $49,999

$50,000 - $74,999

$75,000 - $99,999

$100,000 - $149,999

$150,000 - $199,999

$200,000+

14.5%

13.1%

14.1%

17.7%

19.3%

9.7%

7.7%

2.0%

1.9%

+3.9%

+3.0%

+3.3%

+3.7%

+0.8%

-1.3%

-5.1%

-3.2%

-5.1%


Dallas County

KEY FACTS

265,910Population

30.1

Median Age

3.4



Income

EDUCATION

39%

No HighSchool


Graduate

20%Some College 13%


BUSINESS



EMPLOYMENT

44%White Collar

37%Blue Collar

19%Services

6.2%

UnemploymentRate

INCOME

$38,458


$17,118

Per Capita Income

$20,487

Median Net Worth



<$15,000

$15,000 - $24,999

$25,000 - $34,999

$35,000 - $49,999

$50,000 - $74,999

$75,000 - $99,999

$100,000 - $149,999

$150,000 - $199,999

$200,000+

16.6%

13.9%

14.4%

17.0%

17.7%

8.9%

7.3%

2.3%

1.7%

+6.0%

+3.8%

+3.6%

+3.0%

-0.8%

-2.1%

-5.5%

-2.9%

-5.3%


Dallas County

KEY FACTS

20,525Population

28.0

Median Age

3.8



Income

EDUCATION

52%

No HighSchool


Graduate

15%Some College 5%


BUSINESS

282Total Businesses


EMPLOYMENT

36%White Collar

47%Blue Collar

16%Services

5.1%

UnemploymentRate

INCOME

$40,330


$13,073

Per Capita Income

$25,482

Median Net Worth



<$15,000

$15,000 - $24,999

$25,000 - $34,999

$35,000 - $49,999

$50,000 - $74,999

$75,000 - $99,999

$100,000 - $149,999

$150,000 - $199,999

$200,000+

10.0%

13.6%

17.1%

20.8%

21.3%

8.3%

7.0%

1.4%

0.6%

-0.6%

+3.5%

+6.3%

+6.8%

+2.8%

-2.7%

-5.8%

-3.8%

-6.4%


Dallas County

KEY FACTS

129,845Population

29.4

Median Age

3.5



Income

EDUCATION

43%

No HighSchool


Graduate

18%Some College 12%


BUSINESS



EMPLOYMENT

41%White Collar

40%Blue Collar

18%Services

5.8%

UnemploymentRate

INCOME

$40,751


$15,879

Per Capita Income

$24,036

Median Net Worth



<$15,000

$15,000 - $24,999

$25,000 - $34,999

$35,000 - $49,999

$50,000 - $74,999

$75,000 - $99,999

$100,000 - $149,999

$150,000 - $199,999

$200,000+

14.5%

13.1%

14.1%

17.7%

19.3%

9.7%

7.7%

2.0%

1.9%

+3.9%

+3.0%

+3.3%

+3.7%

+0.8%

-1.3%

-5.1%

-3.2%

-5.1%


Dallas County

KEY FACTS

265,910Population

30.1

Median Age

3.4



Income

EDUCATION

39%

No HighSchool


Graduate

20%Some College 13%


BUSINESS



EMPLOYMENT

44%White Collar

37%Blue Collar

19%Services

6.2%

UnemploymentRate

INCOME

$38,458


$17,118

Per Capita Income

$20,487

Median Net Worth



<$15,000

$15,000 - $24,999

$25,000 - $34,999

$35,000 - $49,999

$50,000 - $74,999

$75,000 - $99,999

$100,000 - $149,999

$150,000 - $199,999

$200,000+

16.6%

13.9%

14.4%

17.0%

17.7%

8.9%

7.3%

2.3%

1.7%

+6.0%

+3.8%

+3.6%

+3.0%

-0.8%

-2.1%

-5.5%

-2.9%

-5.3%


Dallas County

KEY FACTS

20,525Population

28.0

Median Age

3.8



Income

EDUCATION

52%

No HighSchool


Graduate

15%Some College 5%


BUSINESS

282Total Businesses


EMPLOYMENT

36%White Collar

47%Blue Collar

16%Services

5.1%

UnemploymentRate

INCOME

$40,330


$13,073

Per Capita Income

$25,482

Median Net Worth



<$15,000

$15,000 - $24,999

$25,000 - $34,999

$35,000 - $49,999

$50,000 - $74,999

$75,000 - $99,999

$100,000 - $149,999

$150,000 - $199,999

$200,000+

10.0%

13.6%

17.1%

20.8%

21.3%

8.3%

7.0%

1.4%

0.6%

-0.6%

+3.5%

+6.3%

+6.8%

+2.8%

-2.7%

-5.8%

-3.8%

-6.4%


Dallas County

KEY FACTS

129,845Population

29.4

Median Age

3.5



Income

EDUCATION

43%

No HighSchool


Graduate

18%Some College 12%


BUSINESS



EMPLOYMENT

41%White Collar

40%Blue Collar

18%Services

5.8%

UnemploymentRate

INCOME

$40,751


$15,879

Per Capita Income

$24,036

Median Net Worth



<$15,000

$15,000 - $24,999

$25,000 - $34,999

$35,000 - $49,999

$50,000 - $74,999

$75,000 - $99,999

$100,000 - $149,999

$150,000 - $199,999

$200,000+

14.5%

13.1%

14.1%

17.7%

19.3%

9.7%

7.7%

2.0%

1.9%

+3.9%

+3.0%

+3.3%

+3.7%

+0.8%

-1.3%

-5.1%

-3.2%

-5.1%


Dallas County

KEY FACTS

265,910Population

30.1

Median Age

3.4



Income

EDUCATION

39%

No HighSchool


Graduate

20%Some College 13%


BUSINESS



EMPLOYMENT

44%White Collar

37%Blue Collar

19%Services

6.2%

UnemploymentRate

INCOME

$38,458


$17,118

Per Capita Income

$20,487

Median Net Worth



<$15,000

$15,000 - $24,999

$25,000 - $34,999

$35,000 - $49,999

$50,000 - $74,999

$75,000 - $99,999

$100,000 - $149,999

$150,000 - $199,999

$200,000+

16.6%

13.9%

14.4%

17.0%

17.7%

8.9%

7.3%

2.3%

1.7%

+6.0%

+3.8%

+3.6%

+3.0%

-0.8%

-2.1%

-5.5%

-2.9%

-5.3%


Dallas County

Population Population PopulationMedian Age Median Age Median Age

Average Household Size



Median Household

Income

Median Household

Income

Median Household

Income

Total Businesses Total Businesses Total BusinessesTotal Employees Total Employees Total Employees

KEY DEMOGRAPHIC FACTS

BUSINESS

EMPLOYMENT

EDUCATION

Unemployment Rate

Unemployment Rate

Unemployment Rate

White Collar White Collar White Collar

Blue Collar Blue Collar Blue Collar

Services Services Services

No High School

Diploma

No High School

Diploma

No High School

DiplomaHigh

School Graduate

High School

Graduate

High School

Graduate

Some College

Some College

Some CollegeBachelor's/

Grad/Prof Degree

Bachelor's/Grad/Prof Degree

Bachelor's/Grad/Prof Degree

MA

RK

ET

OV

ER

VIE

W


MetropolitanStatistical Areas

Change inTotal Population

Percentage ofPopulation Change

Atlanta 89,013 1.51%

Charlotte 49,786 1.89%

Chicago -13,286 -0.14%

Dallas-Fort Worth 146,238 1.97%

Denver 36,379 1.12%

Houston 94,417 1.37%

Los Angeles 25,646 0.19%

New York 45,697 0.22%

Philadelphia 18,968 0.31%

Phoenix 88,772 1.87%

San Diego 20,485 0.61%

San Francisco 28,280 0.59%

COMPONENTS OF POPULATION CHANGE - JULY 1, 2016-JULY 1, 2017Source: ACS 5-year estimates (2012-2017), US Census Bureau

DALLAS-FORT WORTH

BY THE NUMBERSThe Dallas-Fort Worth region offers an attractive quality of life, a strong regional and

state economy, a low cost of living, a skilled labor force, and a pro-business mindset

offering an absence of corporate and personal income taxes.

The region is the nation's fourth-largest metro area positioned in the middle of the

United States, and offers competitive advantages for businesses that locate here.

The region's central location allows it to function as an international distribution hub.

DFW ranks among the top three U.S metropolitan areas for business expansions,

relocations and employment growth.

DFW's young, highly educated workforce of more than 3.8 million people is growing

quickly, providing companies with the abundance of talent they need to make their

businesses successful.

MA

RK

ET

OV

ER

VIE

W


DFW POPULATION

390+RESIDENTS ADDED PER DAY

7,399,662CURRENT RESIDENTS

146,000RESIDENTS WERE ADDED

2017-2018

10,676,844PREDICTION OF

POPULATION BY 2040


Dallas-Fort Worth continues to bring Fortune and Global 500 corporate headquarters to the region. It's a testament to the dynamic economy in the region today. DFW is home to 42 Fortune 1,000 headquarters, with four of those companies being on the Fortune Global 500 list.

Texas is one of three states in the U.S. that have 50 or more Fortune 500 headquarters. At 50, Texas is behind only New York (54) and California (53). DFW is the third largest metroplex in the country to have more than 20 Fortune 500 headquarters with 22, behind New York-Newark, Jersey City (69) and Chicago, Naperville, Elgin (33).

Major relocations and expansions have occurred in the past several years with notable Fortune 500 and Forbes Top Private companies. Recently companies like Fluor, Comerica, Golden Living and AT&T have moved to the region joining other industry leaders such as Toyota, Top Golf, Jamba, and NTT Data. Concurrently BMW, General Motors, Galderma, Amazon, and Bed Bath & Beyond all have expanded into distribution, manufacturing, and logistics. Other noteworthy companies such as American Airlines, Liberty Mutual, State Farm, FedEx, and 7-Eleven have moved to larger office spaces.

DENTON

Sally Beauty #592

IRVING

Exxon Mobil #4

Fluor #149

Kimberly Clark #155

Celanese #484

Michaels Stores #496

Commercial Metals #535

Flowserve #589

Pioneer Natural Resources #606

Darling Ingredients #665

MCKINNEY

Torchmark Corp #580

PLANO

JCPenney #221

Alliance Data Systems #378

Yum China Holdings #399

Dr Pepper Snapple Group #416

Rent-A-Center #735

Cinemark Holdings #744

RICHARDSON

Lennox International #627

Fossil #723

DALLAS-LBJ CORRIDOR

Texas Instruments #206

Alon USA #605

Atmos Energy #670

Brinker International #684

GRAPEVINE-SOUTHLAKE

Gamestop #321

Sabre Corp #668

Nationstar Mortgage #852

1

2

3

4

5

6

7

DALLAS LOVE FIELD

Southwest Airlines #138

8

DALLAS-FORT WORTH

42HEADQUARTERS

IN DALLAS- FORT WORTH

FORTUNE 1,000 M

AR

KE

T O

VE

RV

IEW


12 11

10

6

7

8

9

5

4

3

21

DOWNTOWN DALLAS (CBD & UPTOWN)

AT&T #9

Energy Transfer Equity #79

Tenet Healthcare #134

Jacobs Engineering #259

Hollyfrontier Corp #274

Dean Foods #351

Builders Firstsource #421

Vista Energy #499

Neiman Marcus #515

Trinity Industries #539

Comerica #736

Primoris Services Corp #938

FORT WORTH

American Airlines #67

ARLINGTON

D.R. Horton #232

FORT WORTH CBD

Pier 1 Imports #967

9 10

11

12

Source: DRC Research; Fortune Magazine; Forbes Magazine

DALLAS LOVE FIELD

Southwest Airlines #138

DALLASFORT WORTH

FORTUNE 1,000 HEADQUARTERS IN DFW METRO


Disclosures


The material contained in this Offering Brochure is

furnished solely for the purpose of considering the

purchase of the property within and is not to be used

for any other purpose. This information should not,

under any circumstance, be photocopied or disclosed

to any third party without the written consent of

the SVN® Advisor or Property Owner, or used for

any purpose whatsoever other than to evaluate the

possible purchase of the Property.

The only party authorized to represent the Owner in

connection with the sale of the Property is the SVN®

Advisor listed in this brochure, and no other person is

authorized by the Owner to provide any information

or to make any representations other than contained

in this Offering Brochure. If the person receiving these

materials does not choose to pursue a purchase of the

Property, this Offering Brochure must be returned to

the SVN® Advisor.

Neither the SVN® Advisor nor the Owner make any

representation or warranty, express or implied, as

to the accuracy or completeness of the information

contained herein, and nothing contained herein is or

shall be relied upon as a promise or representation

as to the future representation of the Property. These

Assumptions may or may not be proven to be correct,

and there can be no assurance that such estimates

will be achieved. Further, the SVN® Advisor and the

Owner disclaim any and all liability for representations

or warranties, expressed or implied, contained

in or omitted from this Offering Brochure, or any

other written or oral communication transmitted or

made available to the recipient. The recipient shall

be entitled to rely solely on those representations

and warranties that may be made to it in any final,

fully executed and delivered Real Estate Purchase

Agreement between it and Owner.

The information contained herein is subject to change

without notice and the recipient of those materials

shall not look to Owner or the SVN® Advisor nor

any of their officers, employees, representatives,

independent contractors or affiliates, for the accuracy

or completeness thereof. Recipients of this Offering

Brochure are advised and encouraged to conduct

their own comprehensive review and analysis of the

Property.

This Offering Brochure is a solicitation of interest only

and is not an offer to sell the Property. The Owner

expressly reserves the right, at its sole discretion, to

reject any or all expressions of interest to purchase

the Property and expressly reserves the right, at its

sole discretion, to terminate negotiations with any

entity, for any reason, at any time with or without

notice. The Owner shall have no legal commitment

or obligation to any entity reviewing the Offering

Brochure or making an offer to purchase the Property

unless and until the Owner executes and delivers a

signed Real Estate Purchase Agreement on terms

acceptable to Owner, in Owner’s sole discretion. By

submitting an offer, a prospective purchaser will be

deemed to have acknowledged the foregoing and

agreed to release the Owner and the SVN Advisor from

any liability with respect thereto.

To the extent Owner or any agent of Owner or any

agent of Owner corresponds with any prospective

purchaser, any prospective purchaser should not

rely on any such correspondence or statements as

binding Owner. Only a fully executed Real Estate

Purchase Agreement shall bind the property and each

prospective purchaser proceeds at its own risk.

6320 LBJ Freeway, Suite 228Dallas, TX 75240

214-206-9559 •svn-isg.com


DISCLAIMER


DISCLOSUREInformation About Brokerage Services 11-2-2015

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’S MINIMUM DUTIES REQUIRED BY LAW (A client is the person or party that the broker represents):

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

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.

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; andTreat all parties to a real estate transaction honestly and fairly.

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 dutiesabove and must inform the owner of any material information about the property or transaction known by the agent, includinginformation 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 awritten representation agreement. A buyer's agent must perform the broker’s minimum duties above and must inform the buyer of anymaterial information about the property or transaction known by the agent, including information disclosed to the agent by the seller orseller’s agent.

AS AGENT FOR BOTH - INTERMEDIARY: To act as an intermediary between the parties the broker must first obtain the writtenagreement of each party to the transaction. The written agreement must state who will pay the broker and, in conspicuous bold orunderlined 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 andbuyer) 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; andany confidential information or any other information that a party specifically instructs the broker in writing not todisclose, 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 thebuyer. 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 foryou to use the broker’s services. Please acknowledge receipt of this notice below and retain a copy for your records.

Licensed Broker/Broker Firm Name orPrimary Assumed Business Name

License No. Email Phone

Designated Broker of Firm License No. Email Phone

Licensed Supervisor of Sales Agent/ License No. Email PhoneAssociate

Phone: Fax:

Produced with zipForm® by zipLogix 18070 Fifteen Mile Road, Fraser, Michigan 48026 www.zipLogix.com

Sales Agent/Associate's Name License No. Email Phone

Buyer/Tenant/Seller/Landlord Initials Date

Regulated by the Texas Real Estate Commission Information available at www.trec.texas.gov

IABS 1-0TAR 2501

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TJF Investments LP 9001221 [email protected] (214)206-9559

Todd Franks 479935 [email protected] (214)206-9559



TJF Investments LP, 6320 LBJ Frwy. #228 Dallas, TX 75240 (214)206-9559 (214)206-9616Todd Franks

IABS - Jon Krebbs


NOTES

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TODD FRANKS, CCIMManaging Director

[email protected]

SHAN ZAIDIAdvisor

[email protected]

February 28, 2019 8:31 AM

MICHAEL TRECHAAdvisor

[email protected]

offering memorandum...back online. • no deferred maintenance.little or • owing and dense...

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