BROKER'S OPINION OF VALUE

www.ketent.com4295 San Felipe ● Suite 355 ● Houston, TX 77027

A 80 Unit ● Class C ● Multi-Family Asset

11505 KEEGANS RIDGE RD, Houston, TX 77031

POINT OF THE SOUTHWEST 11505 KEEGANS RIDGE HOUSTON, TX 77031APARTMENTS FOR SALE

Units: 250Avg Size: 729Date Built: 1976Rentable Sq. Ft.: 182,200Acreage: 7.33Occupancy: 100.0%Class: C

SALIENT FACTS:

♦ Owner financing! ♦ Close to the Fort Bend County line

♦ Ideal for an upgrade♦ The existing debt can be prepaid but with a large penalty

♦ Blue collar tenant profile ♦ Located in SW Houston near Ft Bend County♦ Great access to Sam Houston Tollway and US 59; Metro Park & Ride within 1 mile of property

Market

♦ Owner will finance with 10% down; wrap first at par and carry equity for 1 to 2 years at a 7% rate

For More Information Please Contact:

Tom Wilkinson twilk4@ketent.com

713-355-4646 ext 102 4295 San Felipe, Suite 355

Houston, TX 77027 www.ketent.com

2/26/2015 PointoftheSouthwest.xlsx

POINT OF THE SOUTHWEST 11505 KEEGANS RIDGE HOUSTON, TX 77031

Asking Price Est Mkt Rent (Dec-14)Amortization (Months) Estimated CollectionsDebt ServiceMonthly P & IInterest RateEst Date Due

Water Meter / Master RUBS Est Res for Repl/Unit/YrEst Yield Maintenance

Pitched

PRO-FORMA INCOMECurrent Street Rent with a 10% Increase $153,472 / MoEstimated Gross Scheduled Income $153,472 / MoEstimated Loss to Lease (2% of Total Street Rent) 2%Estimated Vacancy (6% of Total Street Rent)Estimated Concessions and Other Rental Losses (6% of Total Street Rent) 6%Estimated Utilities Income(After adding RUBS)Estimated Other Income $175 / Unit / YrEstimated Total Rental IncomeESTIMATED TOTAL PRO-FORMA INCOME $142,298 / Mo

Sept 2014 thru Dec 2014 Income

Fixed Expenses2013 Tax Rate & Est Future Assessment

Estimated

$766 per Unit $993 per Unit

GasTrash

Total Utilities $948 per Unit $948 per Unit

Other ExpensesGeneral & Admin & MarketingRepairs & MaintenanceLabor CostsContract ServicesManagement Fees 0.00% $ per Unit 3.25% $222 per UnitTotal Other Expense $1,433 per Unit $2,132 per Unit

Total Operating Expense $3,148 per Unit $4,073 per Unit

Reserve for Replacement $300 per Unit $300 per Unit

Total Expense $3,448 per Unit $4,373 per Unit

Net Operating Income (Actual Underwriting)

ValuationCap Rate

Current DebtEquityCurrent Debt ServiceCash Flow

Cash on CashNOTES: ACTUALS: Income and Expenses were calculated using owner's 12/14 operating statement. PRO FORMA: Income is Pro Forma as Noted. Taxes were calculated using 2013 Tax Rate & Est Future Assessment. Insurance is estimated. Management Fees calculated as 3.25% of Gross Income, Other expenses are Estimated for the Pro Forma. Flood plain insurance is priced here.

$250,000$632 per Unit

861,903558,402

75,000

358,358

104,655

$150 per Unit$37,500$1,000 per Unit

1,093,264

532,996$55,496

75,000

MODIFIED ACTUALS

Date Built Units per Acre

Elec MeterRoof Style

237,114

$668 per UnitWater & Sewer

$34 per Unit

786,903

$140 per Unit

Other Expenses

$500 per Unit$260 per Unit

$125,000

$668 per Unit

Estimated Other Expenses

$12,504 $50 per Unit $12,504 $50 per Unit

237,114

$166,999

100%

6%

160,569453,748

5,558,615

10/2016

8%+

Property Tax Information2.63151Tax Rate (2014)

Est Future Tax Assessment $5,155,000

$450

$5,125,5912014 Taxes

Est Future Taxes

$18,783 $75 per Unit

$453,748

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 to independentlyconfirm 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 SHOULD CAREFULLY VERIFY EACHITEM 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 right to withdraw this listing or changethe price at anytime without notice during the marketing period.

$65,000

$157,920$34,944

$156,938$8,556

5,558,615

453,748

$628 per Unit

MarketMarket

1,018,264

614,317

360

$37,812

$300

6.16%

2014 Tax Assessment$134,880

1,841,664

Est Ins per Unit per Yr

$139,520$118,359

Physical Occ (Jan-15)

$112,500$281 per Unit$70,340$121,091

182,2007.33Land Area (Acres)

12/14 operating statement $543 per Unit$484 per UnitTaxes

EXPENSE$1,420,305

Fixed Expenses

1976

Insurance

Indiv

Current Loan Parameters

HVAC System Indiv

Jan '14 thru Dec '14 Expenses

1,707,581

Physical Information

Number of Units

Net Rentable Area

MarketAvg Unit Size

Financial Information

250729

$5,558,615

Operating Information

Mortgage Balance

34.106

INCOME

248,154

(36,833)(110,500)

$135,654

PRO-FORMA

1,841,664

1,707,58143,750

(110,500)80,000 $320 / Unit / Yr

Estimated Fixed Expenses

Estimated Expenses

$450 per Unit$135,654

Estimated Utilities

$38,828 $155 per Unit $38,828 $155 per Unit

UtilitiesTotal Fixed Expense

UtilitiesElectricity $75 per Unit$18,783

191,431

$166,999

PROPERTY OVERVIEW

POINT OF THE SOUTHWEST 11505 KEEGANS RIDGE HOUSTON, TX 77031 Keymap: 529Z

Construction Quality: C

Age: 1976 Access Gates Park & Ride Nearby Mortgage BalanceElec Meter: Indiv Cable Ready Walk-In Closets Amortization (months) Houston ISD $1.186700A/C Type: HVAC-Indiv Club House School Bus Pick-up P & I Harris County $0.414550Water: RUBS Laundry Rooms Shuttle Route Type Harris County Flood Control $0.028270Wiring: Copper Mini Blinds Patios/Balconies Assumable Port of Houston Authority $0.017160Roof: Pitched Pool Monthly Escrow Harris County Hospital District $0.170000Paving: Concrete Bookshelves Origination Date Harris County Education Dept $0.006358Materials: Brick/Wood Outside Storage Due Date Houston Community College $0.069717# of Stories: 2 Ceiling Fans Interest Rate City of Houston $0.638750Parking: Yield Maintenance HC ID 5 $0.100000Buildings: 16 Transfer Fee 2014 Tax Rate/$100 $2.631505Units/Acre: 34.11 *In Select Units 2014 Tax Assessment $5,125,591

UNIT MIX

4 Mo Avg 118,359$ Type Sq Ft Rent Total Rent Rent/SF

Jan 2014 108,423$ 1 Bed/1 Bath 128 625 80,000 $480 $61,440 $0.77Feb 2014 110,228$ 1 Bed/1 Bath 50 700 35,000 $520 $26,000 $0.74Mar 2014 114,033$ 2 Bed/2 Bath 48 900 43,200 $700 $33,600 $0.78Apr 2014 116,813$ 2 Bed/2 Bath 24 1000 24,000 $770 $18,480 $0.77May 2014 115,165$ June 2014 115,853$ July 2014 115,281$ Aug 2014 116,597$ Sept 2014 115,948$ Oct 2014 117,576$ Nov 2014 119,926$ Dec 2014 119,985$

Total / Avg 250 729 182,200 $558 $139,520 $0.771/15 RR

Yes1%+app+legal

Yes$21,215

10/20166.16%

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

PROPERTY HIGHLIGHTS

Total SqFt

PROPERTY INFORMATION TAXING AUTHORITY - HARRIS COUNTYEXISTING MORTGAGE ACCT NO: 0410560000057

AMENITIES

COLLECTIONSNo.

Units

$5,558,615360

$37,812Conv

71%

29% 1 Bed/1 Bath

2 Bed/2 Bath

$102,000

$104,000

$106,000

$108,000

$110,000

$112,000

$114,000

$116,000

$118,000

$120,000

$122,000

Jan 2

014

Feb 2

014

Mar 2

014

Apr 2

014

May 2

014

June

2014

July

2014

Aug 2

014

Sept

2014

Oct 2

014

Nov 2

014

Dec 2

014

The Point of the Southwest Apartments, is a two story, garden-style, apartment community located in the Braeswood submarket of southwest Houston,Texas. The asset was built in 1976. Residents enjoy ample amenities which include: mini-blinds, kitchen pantries, ceiling fans, laundry facilities, patios and balconies and walk-in closets. Per O'Connor Online, currently there are no leasing concessions. Collections appear to be rising. The broker feels that an interior and exterior rehab could drastically improve collections. A recent site visit revealed that the property needs new roofs, exterior paint and woodwork. It could also benefit from a good landscaping job. An estimate is $2.500 to $3,000/unit. Per the FEMA map, the property appears to be in the flood plain so insurance was conservatively raised to $450/unit.

Units/Type

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, KET Enterprises Incorporated 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.

PROPERTY LOCATION

POINT OF THE SOUTHWEST 11505 KEEGANS RIDGE HOUSTON, TX 77031

DIRECTIONS TO PROPERTY: From downtown Houston, travel south on I-59 (Southwest Frwy)

and exit at Bellfort. Turn left / east on Bellfort

and continue to Keegan's Ridge. Turn left / north on Keegan's

Ridge to the property.

RENT COMPARABLESPOINT OF THE SOUTHWEST 11505 KEEGANS RIDGE HOUSTON, TX 77031

1 Bristol Court8404 South Course

2 Ashford Pointe3950 Ashburnham

3 Idlewood Park11675 West Bellfort

4 Beacon Hill8110 Creekbend

5 Casa Del Sol9501 W Sam Houston Pkwy S

Totals/Averages Comps 1982 96% 268 774 $715 0.924Point of the Southwest11505 Keegans Ridge

Sub-Market Averages(Braeswood) 90% 20,370 832 $662 0.812Houston Market Avgs 91% 600,257 869 $842 $0.975

RENT COMPARABLES (Jan 2015 O'Connor & Associates) Sorted by Avg Rent/Unit

Property Name Yr Blt Occ #Units

1976 100% 250 729 $558 $0.77

Avg SF Avg Rent P/SF

1982

1983

1984

1983

1980

90% 164 748

98% 660

97% 268 688

95% 121 766 0.960

0.890

$735

$89799% 126 1008

659

0.790

0.970

1.010

$591

$639

$695

POINT OF THE SOUTHWEST

APARTMENTS

1

4

3

2

5

SALES COMPARABLESPOINT OF THE SOUTHWEST 11505 KEEGANS RIDGE HOUSTON, TX 77031

1 Idlewood Park11675 W Bellfort

2 Miramar13150 Bissonnett

3 Braes Hollow87015 Braeswood

4 Las Americas 5909 Glenmont

5 Fountain Oaks 5601 Chimney Rock

Totals/Averages Comps $8,917,700 209,738 $32,121 $43.67 1977 293

Point of the Southwest11505 Keegans Ridge

11/13 $7,500,000 200,178 $28,302 $37.47 1972 265

10/13 $6,300,000 202,804 $24,803 $31.06 1977 254

11/13 $13,884,000 344,834 $26,000 $40.26 1972 534

10/13 $11,256,000 184,392 $42,000 $61.04 1983 268

pending $5,648,500 116,480 $39,500 $48.49 1983 143

SALES COMPARABLES (Sorted by Price/Sq. Ft.)

Property Name Date Sold Price Sq. Ft. Price/Unit Price/SF Units

Market 182,200 1976 250

Built

POINT OF THE SOUTHWEST

APARTMENTS

1

4

3 2

5

SALES COMPS AVAILABLE UPON REQUEST

Houston

1Source: Marcus & Millichap Apartment Research Market Report Dec 2013 & CB Richard Ellis Mar 2014

. 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 –

Sugar Land – Baytown Metropolitan Statistical Area (MSA), comprises

Harris County and nine other counties: Austin, Brazoria, Chambers,

Fort Bend, Galveston, Liberty, Montgomery, San Jacinto and Waller.

The Houston MSA has a population of 5.9 million, according to new

2010 census figures, up from 5.5 million reported in the 2000 census.

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

in the nation; combined with its zone of extraterritorial jurisdiction, an

area extending five miles beyond the city’s boundary, the city controls

1,906 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 sixth

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. The cost of living is about 12% lower than the United States

average and overall housing costs are 25% lower than the national

average.

Houston Economy

■ Employment Forecast: The Greater Houston Partnership expects

69,800 new jobs to be created in 2014, supporting the downward

unemployment trend. In November 2013, Houston's unemployment

rate dropped to 5.6% while National unemployment averaged 6.6%.

■ Construction Forecast: There were 17,614 units under construction

for the 4th Quarter 2013 with 20,820 proposed units for 2014.

■ Occupancy Forecast: Citywide the occupancy rates are above 90%

and are expected to remain on the upswing despite an increase in

delivery of units, mostly Class A. The average occupancy for all

classes is 90.5%, up from 89.6% in the 3rd Quarter 2013.

■ Rent Forecast: Positive rent growth was experienced in 2013 across

all classes, reaching $0.98 per sq. ft. by the 4th Quarter 2013. Despite

strong unit delivery, rent growth is anticipated to remain positive in

2014.

■ Investment Forecast: Class B/C demand is on the rise, but

development is limited almost entirely to Class A product. As a result,

smaller 1970s and early-1980s properties which tend to trade at cap

rates upwards of 9 percent, should garner stronger investor attention

this year.1

.

2014 Market Outlook

Effectively, Houston’s employment cycle entered a recovery stage in 2012 and the city is

expected to remain a top performer relative to other MSA’s nationwide in the longterm. According

to Moodysanalytics.com, not only will Houston rank second in the nation in job growth between

2009 and 2014 (310,600 jobs), but Texas will boast five of the top twenty cities nationally in job

creation. As the domestic and international center for virtually every segment of the petroleum

and natural gas industries, Houston is known as the “Energy Capital of the World.” In the

Medical/Life/Sciences/Biotechnology arena, Houston's health care industry continues to boom.

The Houston Airport System is the fourth-largest airport system in the United States and sixth-

largest in the world. The Port of Houston continues to be a dominant force throughout the nation

and the world. The port has been ranked first in the United States in foreign tonnage for 10

consecutive years, first in imports for 15 consecutive years and second in total tonnage for 15

consecutive years. The Port of Houston is the sixth largest port in the world and ranks tenth in

the world for total tonnage.1

Economic Drivers

POINT OF THE SOUTHWEST 11505 KEEGANS RIDGE HOUSTON, TX 77031

DEMOGRAPHICS

1 Mile Radius 3 Mile Radius 5 Mile Radius

2011 Estimated Population 11,130 69,856 166,3002016 Projected Population 11,908 75,099 179,4942010 Census Population 10,478 65,644 156,0422000 Census Population 11,216 63,958 151,872

Projected Annual Growth 2011 to 2016 1.4% 1.5% 1.6%Historical Annual Growth 2000 to 2011 -0.1% 0.7% 0.7%

2011 Median Age 32.9 31.1 31.7

2011 Estimated Households 3,908 24,459 57,6632016 Projected Households 4,212 26,536 62,8122010 Census Households 3,669 22,886 53,8462000 Census Households 3,952 23,278 54,210

Projected Annual Growth 2011 to 2016 1.6% 1.7% 1.8%Historical Annual Growth 2000 to 2011 -0.1% 0.4% 0.5%

2011 Estimated White 38.2% 35.6% 35.6%2011 Estimated Black or African American 29.0% 32.1% 31.1%2011 Estimated Asian or Pacific Islander 10.0% 11.0% 12.1%2011 Estimated American Indian or Native Alaskan 0.7% 0.6% 0.7%2011 Estimated Other Races 22.0% 20.7% 20.6%

2011 Estimated Hispanic 46.2% 45.9% 44.2%

2011 Estimated Average Household Income $50,989 $48,581 $51,0222011 Estimated Median Household Income $46,356 $44,518 $46,0442011 Estimated Per Capita Income $17,915 $17,041 $17,721

2011 Estimated Elementary (Grade Level 0 to 8) 16.6% 16.7% 16.1%2011 Estimated Some High School (Grade Level 9 to 11) 11.1% 11.7% 11.6%2011 Estimated High School Graduate 24.5% 24.0% 23.9%2011 Estimated Some College 21.0% 21.9% 21.1%2011 Estimated Associates Degree Only 4.4% 4.2% 4.5%2011 Estimated Bachelors Degree Only 15.3% 14.8% 15.7%2011 Estimated Graduate Degree 7.0% 6.7% 7.1%

2011 Estimated Total Businesses 989 3,779 6,9732011 Estimated Total Employees 9,944 45,184 78,5292011 Estimated Employee Population per Business 10.1 12.0 11.32011 Estimated Residential Population per Business 11.3 18.5 23.9

EDU

CA

TIO

N(A

GE

25+)

BU

SIN

ESS

POPU

LATI

ON

HO

USE

HO

LDS

RA

CE

AN

D E

THN

ICIT

Y IN

CO

ME

21%

16%

5% 12%

46%

White Black Asian Other Hispanic

$50,989

$72,073

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

Subject Houston

53.8%

46.2% Non-Hispanic

Hispanic

POINT OF THE SOUTHWEST 11505 KEEGANS RIDGE HOUSTON, TX 77031

POINT OF THE SOUTHWEST 11505 KEEGANS RIDGE HOUSTON, TX 77031

POINT OF THE SOUTHWEST 11505 KEEGANS RIDGE HOUSTON, TX 77031

A 268 UNIT CLASS "B-/C+" GARDEN APARTMENT COMMUNITY