BROKER'S OPINION OF VALUE

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

A 80 Unit ● Class C ● Multi-Family Asset

4015 BELLEFONTAINE, HOUSTON, TX 77025

SOUTHSIDE PLACE

SOUTHSIDE PLACE 4015 BELLEFONTAINE HOUSTON, TX 77025APARTMENTS FOR SALE

PRICE/UNIT:PRICE/SF:

Units: 6 TERMS: ALL CASHAvg Size: 704Date Built: 1962Rentable Sq. Ft.: 4,224Acreage: 0.17Occupancy: 100%Class: C

SALIENT FACTS:

♦ Available on an All Cash or New Loan Basis ♦ Rehab candidate, should get much better rents

♦ Located in the Medical Center market of Houston ♦ Ideal for a small investor♦ The Houston Medical Center is the largest in the world! ♦ Possible covered land play♦ Huge job expansion in the area♦ Ideal for long term hold

MARKET

Mark Kalil & Associates, Inc.

2001 Holcombe Blvd, # 105 | Houston, TX 77030 T 713.799.8700 | F 713.799.8703 | C 713.829.3765

mark@markkalil.com | www.markkalil.com

KET Enterprises Incorporated

1770 St. James Place, Suite 382| Houston, TX 77056 T 713.355.4646 | F 713.355.4331 | C 713.628.9408

twilk4@ketent.com | www.ketent.com

For More Information Please Contact:

1/29/2020 SouthsidePlace

SOUTHSIDE PLACE 4015 BELLEFONTAINE HOUSTON, TX 77025

Asking Price Est Mkt Rent (Jan-20)Price Per Unit Amortization (months) 3 Mo AvgPrice Per Sq. Ft. Debt ServiceStabilized NOI Monthly P & I

Interest RateDate Due

Water Meter / Master Master Est Res for Repl/Unit/YrYield Maintenance

Pitched

PRO-FORMA INCOMECurrent Street Rent with a 60% Increase $7,440 / MoEstimated Gross Scheduled Income $7,440 / MoEstimated Loss to Lease (1% of Total Street Rent) 2%Estimated Vacancy (4% of Total Street Rent)Estimated Concessions and Other Rental Losses (2% of Total Street Rent) 2%Estimated Utilities Income from implementing RUBSEstimated Other Income $325 / Unit / YrEstimated Total Rental IncomeESTIMATED TOTAL PRO-FORMA INCOME $7,481 / Mo

3 Mo Avg Income Annualized

Fixed Expenses2019 Tax Rate & Future Assessment

Estimated Estimated

$2,958 per Unit $2,958 per Unit

Gas

Total Utilities $1,723 per Unit $1,723 per Unit

Other ExpensesGeneral & Admin & MarketingRepairs & Maintenance Capex removed

Labor CostsContract ServicesManagement Fees 0.00% $ per Unit 6.00% $898 per UnitTotal Other Expense $550 per Unit $1,524 per Unit

Total Operating Expense $5,231 per Unit $6,205 per Unit

Reserve for Replacement $300 per Unit $300 per Unit

Total Expense $5,531 per Unit $6,505 per Unit

Net Operating Income (Actual Underwriting)

Asking PriceCap Rate

Proposed DebtEquityEstimated Debt ServiceCash Flow

Cash on Cash

Estimated Utilities

$ per Unit $0 $ per Unit

UtilitiesTotal Fixed Expense

UtilitiesUtilities $890 per Unit$5,337

17,751

$4,999$5,337 $890 per Unit

1,950

(1,786)3,000 $500 / Unit / Yr

Estimated Fixed Expenses

Estimated Expenses

$671 per Unit$13,724

12/19 operating statement

Proposed Loan Parameters

N/A

A/C Type: Heat Pump W/U

2019 YTD Expenses

89,766

Physical Information

Number of Units

N/ANet Rentable Area

MARKETAvg Unit Size

Financial Information

6704

Operating Information

New Loan @ 75% of Asking

35.200

INCOME

Physical Occ (Jan-20)

$4,027$671 per Unit$4,027$13,724

4,2240.17Land Area (Acres) $50,733

2019 Tax Rate & 2019 Assessment $2,287 per Unit$2,287 per UnitTaxes

EXPENSE$50,760

Fixed Expenses

1962

Insurance

Indiv

Est Future Taxes

Date Built

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.

$389

$0

$0$971

$1,939$389

$323 per Unit

MARKETMARKET

37,233

50,733

NOTES: ACTUALS: Income and Expenses are based on owner's 12/19 operating statement. Taxes were calculated using 2019 Tax Rate & 2019 Assessment. PRO FORMA: Income is Pro Forma as Noted. Taxes were calculated using 2019 Tax Rate & Future Assessment. Insurance is estimated. Management Fees calculated as 6.% of Gross Income, Other expenses are Estimated for the Pro Forma.

33,18617,574

1,800

10,336

$4,999

100%

4%

$671

360

$300

4.00%

2019 Tax Assessment$13,724

89,280

Est Ins per Unit per Yr

$4,650$4,230

10 Yrs

Yes

Property Tax Information2.42158Tax Rate (2019)

Est Future Tax Assessment $566,733

$566,733Est 2019 Taxes

$65 per Unit

31,386

$162 per Unit

Other Expenses

$400 per Unit$65 per Unit

$2,400

$833 per Unit

$ per Unit$0

Estimated Other Expenses

MODIFIED ACTUALS

$ per Unit

3,299

17,751

(893)(1,786)

$13,724

PRO-FORMA

89,280

89,766

Units per Acre

Elec MeterRoof Style

10,336

$833 per Unit

Trash

Trash

$ per Unit

17,574

$162 per Unit$971$ per Unit

39,033

9,146$5,386

1,800

50,733

PROPERTY OVERVIEW

SOUTHSIDE PLACE 4015 BELLEFONTAINE HOUSTON, TX 77025 Keymap: 532E

Construction Quality: C

Age: 1962 Access Gates Park & Ride Nearby Mortgage BalanceElec Meter: Indiv Cable Ready Walk-In Closets Amortization Houston ISD $1.136700A/C Type: Heat Pump W/U Courtyard School Bus Pick-up P & I Harris County $0.407130Water: Master Laundry Rooms Shuttle Route Type Harris County Flood Control $0.027920Wiring: Copper Patios/Balconies Assumable Port of Houston Authority $0.010740Roof: Pitched Monthly Escrow Harris County Hospital District $0.165910Paving: Concrete Origination Date Harris County Education Dept $0.005000Materials: Brick/Wood Due Date Houston Community College $0.100263# of Stories: 2 Interest Rate City of Houston $0.567920Parking: 7 SpacesBuildings: 1 Yield Maintenance 2019 Tax Rate/$100 $2.421583Units/Acre: 35.20 Transfer Fee 2019 Tax Assessment $566,733

*In Select Units HCAD Improvement Sq.Ft. 4,224

Total 48,353$

Jan 2019 4,950$ 12 Mo Avg 4,029$ Feb 2019 4,540$ Mar 2019 2,915$ Apr 2019 3,700$ 9 Mo Avg 3,994$ May 2019 5,300$ June 2019 2,213$ July 2019 3,775$ 6 Mo Avg 4,123$ Aug 2019 6,100$ Sept 2019 2,170$ Oct 2019 3,350$ 3 Mo Avg 4,230$ Nov 2019 4,250$ Dec 2019 5,090$

COLLECTIONS

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

PROPERTY HIGHLIGHTS

PROPERTY INFORMATION TAXING AUTHORITY - HARRIS COUNTYEXISTING MORTGAGE ACCT NO: 0811750000018

AMENITIES

$-

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

The Southside Place Apartments, is a two story, garden-style, apartment community located in the Medical Center submarket of Houston,Texas. The asset was built in 1962. Residents enjoy ample amenities which include: mini-blinds, kitchen pantries, ceiling fans, laundry facilities, patios and balconies and walk-in closets. Per owner the roof is relatively new. 4 units have hard surface flooring. All units have new vinyl windows, heat pump window units and certificates of occupancy. The Texas Medical Center is one of the largest employment generators in Houston, currently undergoing a $3 billion expansion. The area incomes are maybe 50% higher than Houston averages. In the long term, the real value here is in the land. A buyer could control this asset and in the long term, look to redevelop with a denser development. The Wall Street Journal predicts that the Houston apartment market will be the strongest in the United States for the next five years. A heavy value add should greatly increase the rents! The parking lot needs work! The broker strongly recommends that the new owner protests the tax valuation. The owner reports that he has not protested the taxes. The brokers feel that the valuation should come down! 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.

SOUTHSIDE PLACE 4015 BELLEFONTAINE HOUSTON, TX 77025

Property Address Yr Built Units Impr Sq.Ft. Impr Value Impr Value/Unit Impr Value/Sq.Ft.

1 4115 Drake 4115 Drake 1962 16 11,088 $1,882,224 $117,639 $169.75

2 201 Emerson 201 Emerson 1968 20 13,989 $1,463,494 $73,175 $104.62

3 Hawthorne 405 Hawthorne 1965 24 13,625 $1,282,361 $53,432 $94.12

4 Westmoreland Central 3619 Garrott 1956 25 11,576 $1,672,729 $66,909 $144.50

5 Afton Gardens 4727 W Alabama 1962 27 19,630 $1,995,000 $73,889 $101.63

Southside Place 4015 Bellefontaine 1962 6 4,224 $566,733 $94,456 $134.17

The Brokers feel that the tax valuation should be strongly protested!

2019 KET RENT COMPARABLE TAX ANALYSIS

$124.80

KET Enterprises Incorporated I 1770 St. James Place Suite 382 I Houston, TX 77056 I 713-355-4646 I www.ketent.com

Averages 1963 20 12,355 $1,477,090 $79,916

SOUTHSIDE PLACE 4015 BELLEFONTAINE HOUSTON, TX 77025

2019 KET RENT COMPARABLE TAX ANALYSIS

KET Enterprises Incorporated I 1770 St. James Place Suite 382 I Houston, TX 77056 I 713-355-4646 I www.ketent.com

2

1

3

4 5

SOUTHSIDE PLACE 4015 BELLEFONTAINE HOUSTON, TX 77025 Unit Mix

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

1 Bed/1 Bath 1 610 610 $750 $750 $1.23

1 Bed/1 Bath 1 610 610 $700 $700 $1.15

1 Bed/1 Bath 1 762 762 $825 $825 $1.08

1 Bed/1 Bath 1 610 610 $750 $750 $1.23

1 Bed/1 Bath 1 610 610 $750 $750 $1.23

1 Bed/1 Bath 1 762 762 $875 $875 $1.15

Laundry/Utility Room 1 260 260 $0 $0 $0.00

6 704 4,224 $775 $4,650 $1.10

Owner 1-17-20

UNIT MIX

TOTALS AND AVERAGES Total Units

Average Sq. Ft.

Total Sq. Feet

Average Rent/Unit Total Rent Average Rent/ SF

PROPERTY LOCATION

SOUTHSIDE PLACE 4015 BELLEFONTAINE HOUSTON, TX 77025

SOUTHSIDE PLACE 4015 BELLEFONTAINE HOUSTON, TX 77025

RENT COMPARABLESSOUTHSIDE PLACE 4015 BELLEFONTAINE HOUSTON, TX 77025

1 4115 Drake4115 Drake

2 201 Emerson201 Emerson

3 Hawthorne405 Hawthorne

4 Westmoreland Central3619 Garrott

5 Afton Gardens4727 W Alabama

*Resident Pays E(Electric), W(Water), G(Gas)Totals/Averages Comps 1963 94% 22 576 $1,184 $2.055

Southside Place4015 Bellefontaine

Sub-Market Averages(Med Center/Braes Bayou) 91% 24,114 879 $1,288 $1.460Houston Market Avgs 85% 656,042 882 $988 $1.125

P/SF

1962 100% 16 638 $1,072 EWG 1.680

Property Name Yr Blt Occ #Units Avg SF Avg Rent EWG

25 376 $1,004 E

1.830

1965 92% 24 568 $1,091 E 1.920

1968 92% 20 649 $1,188 EWG

1962 100% 6 704 $775 EWG

RENT COMPARABLES (2020 ADS and other sources) Sorted by Avg Rent/Unit

2.670

1962 89% 27 650 $1,413 EWG 2.174

1956

$1.101

96%

3 2

1

4 5

SALES COMPARABLESSOUTHSIDE PLACE 4015 BELLEFONTAINE HOUSTON, TX 77025

1 4115 Drake R4115 Drake

2 2210 Brun R2210 Brun

3 2300 Park R2300 Park

4 1218 Jackson R1218 Jackson

5 Jackson Square R1220 Jackson

R = rehabbed; NR = not rehabbed

Totals/Averages Comps $3,550,000 21,122 $149,795 $245.30 1962 24

Southside Place4015 Bellefontaine

Built

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

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

MARKET 4,224 1962 6

7/19 $2,320,000 10,201 $145,000 $227.43 1962 16

10/19 $940,000 4,780 $156,667 $196.65 1965 6

4/18 $7,400,000 69,000 $142,308 $107.25 1956 52

7/19 $2,800,000 12,533 $140,000 $223.41 1966 20

9/16 $4,290,000 9,094 $165,000 $471.74 1962 26

1

4 3 2 5

SOUTHSIDE PLACE 4015 BELLEFONTAINE HOUSTON, TX 77025

DEMOGRAPHICS

1 Mile 2 Mile Radius 3 Mile Radius

2019 Estimated Population 20,819 80,288 191,5652024 Projected Population 21,370 82,639 198,0942010 Census Population 19,081 73,390 169,0542000 Census Population 17,554 66,814 156,470

Projected Annual Growth 2019 to 2024 0.5% 0.6% 0.7%Historical Annual Growth 2000 to 2019 1.0% 1.1% 1.2%

2019 Median Age 37.5 36.8 34.4

2019 Estimated Households 8,124 37,327 90,4232024 Projected Households 8,556 39,479 96,1282010 Census Households 7,102 32,526 75,2962000 Census Households 7,020 30,486 70,535

Projected Annual Growth 2019 to 2024 1.1% 1.2% 1.3%Historical Annual Growth 2000 to 2019 0.8% 1.2% 1.5%

2019 Estimated White 69.4% 63.9% 58.2%2019 Estimated Black or African American 8.0% 11.9% 14.6%2019 Estimated Asian or Pacific Islander 15.4% 16.5% 14.4%2019 Estimated American Indian or Native Alaskan 0.4% 0.4% 0.4%2019 Estimated Other Races 6.8% 7.4% 12.3%

2019 Estimated Hispanic 22.3% 22.3% 32.9%

2019 Estimated Average Household Income $265,801 $198,417 $144,2042019 Estimated Median Household Income $139,241 $107,099 $89,8502019 Estimated Per Capita Income $103,756 $92,282 $68,171

2019 Estimated Elementary (Grade Level 0 to 8) 1.2% 1.8% 5.9%2019 Estimated Some High School (Grade Level 9 to 11) 1.3% 1.9% 2.7%2019 Estimated High School Graduate 5.0% 6.6% 10.3%2019 Estimated Some College 8.7% 9.5% 12.5%2019 Estimated Associates Degree Only 2.3% 4.1% 4.2%2019 Estimated Bachelors Degree Only 31.3% 31.8% 30.8%2019 Estimated Graduate Degree 50.2% 44.3% 33.6%

2019 Estimated Total Businesses 628 5,590 21,3322019 Estimated Total Employees 4,427 47,733 362,4612019 Estimated Employee Population per Business 7.1 8.5 17.02019 Estimated Residential Population per Business 33.2 14.4 9.0

POPU

LATI

ON

INC

OM

EED

UC

ATI

ON

(AG

E 25

+)B

USI

NES

SH

OU

SEH

OLD

S R

AC

E A

ND

ETH

NIC

ITY

54%

6%

12%

5%

23%

White Black Asian Other Hispanic

$265,801

$72,073

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

Subject Houston

77.7%

22.3% Non-Hispanic

Hispanic

SOUTHSIDE PLACE 4015 BELLEFONTAINE HOUSTON, TX 77025

SOUTHSIDE PLACE 4015 BELLEFONTAINE HOUSTON, TX 77025

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