Heights at Harper's Preserve

Class A+ Garden Asset Well Below Replacement Cost minutes from the Woodlands

Confidential Offering Memorandum 328 UNITS 1

Investment Sales Capital Markets offer process

david.wylie@ngkf.com adam.allen@ngkf.com exclusive representation
T 713-425-5410 T 713-425-5433
M 832-526-5206 M 713-824-6066 Newmark Knight Frank has been exclusively retained to represent the Seller in the disposition of HEIGHTS AT
HARPER’S PRESERVE. All inquiries about the Offering or the Property should be directed to Newmark Knight Frank.
zach.springer@ngkf.com tip.strickland@ngkf.com
T 713-425-5428 T 713-337-5810 offering process
M 713-897-9670 M 832-724-4288
The Property is being offered on an “All Cash” basis to qualified purchasers.
david.mitchell@ngkf.com david.schwarz@ngkf.com Prospective purchasers will have the opportunity to visit the Property through scheduled tours with Newmark Knight
T 713-425-5421 T 713-337-5811 Frank.
M 713-503-2513 M 713-412-9055 Please do not contact the on-site management directly.

thomas.alleman@ngkf.com purvesh.gosalia@ngkf.com offer requirements

T 713-425-5434 T 713-300-7954 Offers should be presented in the form of a non-binding Letter of Intent, and must include at least:
» Asset Pricing
M 713-305-3827 M 313-570-5221 » Due Diligence and Closing Time frame
» Earnest Money Deposit
jonathan.powell@ngkf.com kevin.amend@ngkf.com » Description of Debt/Equity Structure
T 713-425-5432 T 713-337-5813 » Qualifications to Close
M 512-810-1555 M 832-387-7620
Purchase terms shall require cash to be paid at closing. Offers should be delivered to the attention of David Wylie via
brett.benton@ngkf.com kristen.wiehe@ngkf.com email.
T 713-337-5800 T 713-337-5814
M 210-860-5515 M 512-639-0129 financing

NEWMARK KNIGHT FRANK For parties interested in receiving debt quotes, please contact our Capital Markets team, Adam Allen, Tip Strickland,
1700 Post Oak Blvd | 2 BLVD Place, Suite 400 David Schwarz Purvesh Gosalia, Kevin Amend, or Kristen Wiehe. Newmark Knight Frank facilitates agency, life
Houston, TX 77056 | T 713-599-1800 | F 713-599-1801 company, bank, bridge, and mezzanine financing options.

underwriting

For questions regarding the underwriting presented in this offering memorandum please contact Chirag Batavia at
713-554-0134 or chirag.batavia@ngkf.com.

property tours

To accommodate the Property’s ongoing operations, Newmark Knight Frank requests 24-hour advance notice to
schedule a tour.

2

table of contents 20-3p3ages 34-3p7ages

4-19pages property details financial analysis
pro forma
executive summary
investment highlights

38-4p1ages 42-4p5ages

market overview appendix
rent comparables

3

executive
summary

4

5

executive property financial market appendix
summary details analysis overview

investment highlights

SUMMARY CLASS A+ GARDEN ASSET WELL BELOW REPLACEMENT COST, LOCATED WITHIN THE HARPER’S RESERVE
MASTER PLANNED COMMUNITY AND MINUTES AWAY FROM THE WOODLANDS
HEIGHTS AT HARPER’S PRESERVE
• The Property distinguishes itself from its competitors with exquisite amenities and modern interior finishes in
17116 HARPER’S TRACE, CONROE, TX 77385 addition to its attractive natural surroundings
» Community amenities include an expansive fitness center w/ cardio & strength equipment, resort-style
swimming pool, cyber lounge, exuberant courtyards with grilling stations, social lounge w/ double sided
fireplace, and car care center w/ vacuum
» Apartment amenities include SS appliance packages, vinyl plank flooring, granite countertops, accent
backsplashes, two types of designer kitchen cabinets, kitchen islands, 36” vanity height cabinets w/ double
sinks, and sunrooms w/ juliet balconies

Woodlands/Conroe South

SUBMARKET

2016 328 Garden

YEAR COMPLETED UNITS STYLE

XXXXXX sf XXX sf

NET RENTABLE AREA AVERAGE UNIT SIZE

$XXXX per unit | $XXX per sf

AVERAGE MARKET RENT

XX%

OCCUPANCY JAN-2020

XXXX acres | XXXX units/acre

ACREAGE & DENSITY

All Cash

TERMS

6

executive property financial market appendix
summary details analysis overview

DIRECTLY ADJACENT & WALKABLE TO CHI ST. LUKE’S THE HOUSTON METHODIST
THE BRAND-NEW MARKET AT HARPER’S WOODLANDS HOSPITAL THE WOODLANDS HOSPITAL
PRESERVE (H-E-B ANCHORED NEW
DEVELOPMENT) 2 MILES

• Market at Harper’s Preserve conveniently IRONS JUNIOR HIGH SCHOOL
sits just a few steps away from the Property
providing excellent walkability TEXAS CHILDREN’S HOSPITAL CHI ST. LUKE’S THE MEMORIAL HERMANN
THE WOODLANDS LAKESIDE HOSPITAL THE WOODLANDS HOSPITAL
• Anchored by H-E-B with leases signed with
Great Clips, Crust Pizza, Pacific Dental, THE WOODLANDS
Twin Liquors, and Nail Bar of Texas
ZONED TO DESIRABLE CONROE ISD OAK RIDGE HIGH SCHOOL
• Pad sites with leases signed include OAK RIDGE ELEMENTARY SCHOOL
Valvoline and Regions Bank with • One of the fastest growing school districts in the State
McDonalds currently proposed with an average enrollment growth of 1,500 students VOGEL INTERMEDITATE SCHOOL
per year
• Additional space is available for future Woodlands Pkwy
anchored tenants
• Graduation rate of 95.7% is among the highest in the

State

Kuykendahl Rd 3MM SF complex 45
10,000 employees
SPRING
Main St

PAD

Nail Bar of Texas

249

Tomball Pkw Spring Cypress Rd 7

executive property financial market appendix
summary details analysis overview

EXCELLENT ACCESS TO THE WOODLANDS TOP EMPLOYMENT
CENTERS AND BENEFICIARY OF MEDICAL EXPANSIONS

• The Property sits less than 2-miles from major healthcare (3,409 CHI ST. LUKE’S THE HOUSTON METHODIST
empl.) and 3-miles from major energy employers (9,928 empl.) WOODLANDS HOSPITAL THE WOODLANDS HOSPITAL

• Medical employers include CHI St. Lukes Hospital, Houston
Methodist, Texas Children’s Hospital, and Memorial Hermann

• Energy employers include Anadarko, ExxonMobil, Baker Hughes,
Entergy, and Halliburton

EXCELLENT RENTAL TREND WITH FAVORABLE FUNDAMENTALS TEXAS CHILDREN’S HOSPITAL CHI ST. LUKE’S THE MEMORIAL HERMANN
SUPPORTING STRONG RENT GROWTH THE WOODLANDS LAKESIDE HOSPITAL THE WOODLANDS HOSPITAL

5 MILES THE WOODLANDS

• The last 25 new leases and renewals have had 6.4% and 3.1% MARKET STREET THE WOODLANDS MALL
rent growth over prior leases, respectively (based on same- 34-ACRE RETAIL 1.3M SF RETAIL
store lease terms 12 – 14 months)
CYNTHIA WOODS Woodlands Pkwy THE WOODLANDS TOWN CENTER
• The Property had 7% and 4% occupancy and effective rental MITCHELL PAVILION 6.9M SF OFFICE SPACE
income growth, respectively, over the last 12-months ending WOODLANDS
Dec’19 COUNTRY CLUB

• Effective gross income increased 11% over the last 12-months WOODLANDS RESORT &
ending Dec’19 CONFERENCE CENTER

• Currently there is nothing under construction within a 3.5-mile
radius of the Property

AFFLUENT SURROUNDING DEMOGRAPHICS (3-MILE RADIUS) Kuykendahl Rd 3MM SF complex 45
10,000 employees
Main St SPRING
SPRINGWOODS VILLAGE
• Average household income is $120K and is estimated to 2,000-ACRE GROUND-UP DEVELOPMENT
increase 11.2% in the next 5-years CAPACITY FOR 9M SF OF COMMERCIAL SPACE
35,000-50,000 POTENTIAL EMPLOYEES

• 51% of households have average incomes greater than $100K

• 45% population growth from 2010 - 2019 CHI ST. LUKE’S HEALTH
SPRINGWOODS VILLAGE

• 68% white collar jobs 249

8 Kuykendahl RdSpring Cypress Rd
Louetta Rd
Hufsmith-Kohrville Rd
Tomball Pkwy Cypress Creek Pkwy

1960 1960

executive property financial market appendix
summary details analysis overview

45 1.75 MILES 1.75 MILES lone star
1.25 MILES college
halliburton
north belt campus

firehouse lane suchma tx-242
elementary school

harper’s school road the market harper’s trace
at harper’s preserve
Gerald D. Irons, Sr.
Junior High School

9

executive property financial market appendix
summary details analysis overview

major employers

GREEN BRIDGE DR COLLEGE PARK DR

11 GOSLING RD 45 Employment

8 1] Anadarko
2] Entergy
6 3] Chevron Phillips
4] Huntsman
9 RESE8ARCH FOREST DR 7 5] McKesson
3 6 6] Baker Hughes
LAKE WOODLANDS DR 7] Memorial Hermann The
10 2
5 MILES 5 Woodlands Medical Center
8] CB&I
24 9] Repsol
10] Alight Solutions
2 1 3 11] Lone Star Corporate Campus
2 3 74 1
retail/entertanment
5
1] Cynthia Woods Mitchell Pavillion
WOODLANDS PKWY 2] Market Street
3] Cinemark
4] The Woodlands Mall
5] Pinecroft Center
6] Portofino Shopping Center
7] Waterway Square
8] Woodforest Bank Stadium

10

Huntsman - 1,018 Employees
executive pHSdrWoePptaN-eilr2st-y,410,500E0mEmplopyloeyeeses financial market
summary analysis overview appendix

ABS - 600 Employees
1ExxonMobil - 1A0N,0A0D0AERmKpOloPyeEeTsROLEUM CORPORATION
ECnhteevrrgoyn--570801»EE mmpeWpxloolporlylodyer’easetelisaosrngaesntdinpdroedpuecntdioennst Oil and natural gas
company
BAankaedraHrkuog-h3e,s3»-0 595EeE0mmmppEpllmoolyyoepsry3lioe,n3eyT3esh9eepsWeoopoldelaannddsis the 2nd largest
Huntsman - 1,018 Employees

5.7-miles SHSAEWBP, S1N-2-2I--6,N4m100,0i50nP0EEc0RmmoEOmpmplmolGopyuyleRoeteyeeEseseSsS

4 HUNTSMAN CORPORATIONEExnxteorngMyo-db5ii0ls0-ta1E0nm,0cp0elo0syEemesployees
» A multinational chemical productCshperovdruocner - 781 Employees
» Employs more than 10,000 peoplBeawkoerlrdwHiudeghes - 550 Employees
and 1,018 people in The WoodlanAdns adarko - 3,309 Employees
Huntsman - 1,018 Employees

5.6-miles SE, 16-min commute HP - 2,400 Employees
SWN - 1,500 Employees
ABS - 600 Employees
3 CHEVROEENxnxtPeoHrngIMLyLo- Ib5Pi0lS0- 1CE0mH,0Ep0Mlo0yIECemeAspLloCyOeMesPANY
» A globaCl lheaedverroinnt-he7p8r1odEumctiponlooyf eoleesfins and
polyoleBfinask,ehreaHduqugahrteersed- 5in5T0heEWmopodlolaynedes s
» EmployAs n5,a0d00arpkeoop-le3w,3o0rld9wEidme wpiltohy7e8e1semployed in
The WoHodulanntdssman - 1,018 Employees

5.5-miles SE, 16-min commute

10 ALIGHT SOLUTIONS

» A provider of benefits administration and
cloud based HR and financial solutions

» Headquartered in The Woodlands and
employs 1,800 people

4.3-miles SE, 15-min commute

11

executive property financial market appendix
summary details analysis overview

at a glance: 35 - 50K workforce (at completion) $111K Average Household income
Springwoods Village - 2,000-acres 590 hotel rooms
CityPlace - 60-acres 4M SF Office space, 400K SF retail 290-acres parks and trails
4 corporate campuses - 14.7K employees

1 AUDUBON GROVE 1 EXXON MOBIL 2 ABS 3 SOUTHWESTERN ENERGY

NEW HOMES BY TAYLOR MORRISON 10,000 EMPLOYEES 600 EMPLOYEES 1,500 EMPLOYEES

HOME VALUES TO $775,000 4 HEWLETT-PACKARD 5 CHI-ST. LUKES 6 MARRIOTT CITYPACE

2 HARPER WOODS

NEW HOMES BY SULLIVAN BROTHERS 2,400 EMPLOYEES 500 EMPLOYEES RECENTLY COMPLETED

HOME VALUES TO $470,000

Exxon Mobil North American Headquarters • Its subsidiary, XTO Energy, moved 1,200 employees to the Exxon Mobil

(9.6-miles SW, 15-min commute) Houston Campus in 2018 and is expected to move an additional 400

• Exxon Mobil is now occupying their new 3-million square foot campus employees in 2020

• Accommodates 10,000 Exxon employees

• Campus will initially include 20 buildings totaling three million square

feet

12

executive property financial market appendix
summary details analysis overview

springwoods village

4 Y
H A RD
HP
Plaza T O
LL
Future
RO
4Development AD

1 45
ExxoEnxxMon oMbobilil CCoorproproatrioantCioamnpCusampus
retaiL| entertainment
park 12 E N E R G Y D R IV E 2
EMPLOYER | OFFICE 1 Nature A CITYPLACE
P R Southwestern
1 Exxon Mobil (10,000 jobs) Preserve K Energy
2 SWN (1,500 jobs) W
3 ABS (600 jobs) AY SouCthawmespteurns
4 HP (2,400 jobs) Energy
5 CHI St. Luke’s Health (1,650 jobs) IN IN G Company
1 Springwoods Village Preserve G E Luxury Headquarters I- 4 5 N O R TH FR E E W AY
2 CityPlace Park V ILL A
1 The Market at Springwoods Village LAKE Apartments 3
2 CityPlace SP R IN G W O O D S
PLAZA SH O P P IN G / D CITYPLACE
Future CITYPLACE
Retail PLAZA
2 ABS P32laza 6C I T Y
SPRING PLAZA DRIVE DRIVESCMeHitFryoavuPrtilrecllia-loectte PARK

1 PINE EAST MO SSY

EAST MO SSY Fire/ FOREST Future O AK
EMT Corporate
Future CityPlace R
Development Campus
O AK
Future DRIV
R Development AD 4.4M SF Mixed-Use Future
O O CCoFarCpumCootFuparrpaurumeottseupraruetse Retail
A Hotel R
D Hotel

Elementary S E Residential
School K
2Residential A
O

Y Future
S Corporate
S
O Campus
M

H O LZW ARTH E AST

Future Luxury CHI
Retail Apartments St. Luke’s

RO AD 5HCeHaI lth
CampSt. Luke’s u s
Medical
Campus

G RAND PARKW AY 5

HP Campus (9.2-miles S, 13-min commute) 4455

American Bureau of Shipping (ABS) (9.8-miles S, 15-min commute)

• HP recently built two office buildings that consist of 378,000 square • ABS moved their global headquarters to the Springwoods Village

feet on 12 acres in Springwoods Village and employs 2,400 people development
HOLZWARTH ROAD
Future Development • The global headquaFurtturee rDsevelocpomenntsists of a 10-story, 326,000 square foot

Southwestern Energy (SWN) (9.5-miles S, 13-min commute) mixed-usTKerhogeberuM, CioalldrdkSietnotngeaCtraeSanpmrdeirny,egB.wmGoopooddleo,sMyVOsDilPla6izgz0ae,0BanpfieeldoPept Hleospital,
1 Tarka Indian Kitchen, Zoe’s Kitchen, The Big Salad, Edible Arrangements,
• A global energy company headquartered in Springwoods Village
Jinya Ramen Bar, Torchy’s Tacos, Regions Bank, Chick-fil-A
• SWN is third largest producer of natural gas in the lower 48 states in

the nation SPRING STUEBNER ROAD

• The 515,000 square foot headquarters’ is home to 1,500 employees, SPRING

which is expected to grow to over 3,000

P L A ZA 13

DR

executive property financial market appendix
summary details analysis overview

medical major employers

5,863

EMPLOYEES

RESEARCH FOREST DR the HealthcareGREEN BRIDGE DR industry represents 1
18% of The Woodlands employment, and 2
boasts two of the top five employers COLLEGE PARK DR 3

the woodlands is Projected to become the secondGOSLING RD 45
largest medical center district in the greater
Houston area, second to the Texas Medical Center 4

Booming Healthcare developments are expected
to meet the 14% projected population growth

over the next five years

RESEARCH FOREST DR

14

executive property Baker Hughes - 550 Employees appendix Baker Hughe
summary details Anafidnaanrkcioal- 3,309 Employees market Anadarko - 3
Hunatnsamlyasins - 1,018 Employees overview Huntsman - 1

Houston Methodist Hospital CHI St. Luke’s – The Woodland’s Hospital

1.25-miles W, 3-min commute 1 21.75-miles W, 4-min commute

HP - 2,400 Employees HP - 2,400 Em
SWN - 1,500 Employees SWN - 1,500
ABS - 600 Employees ABS - 600 Em
ExxonMobil - 10,000 Employees ExxonMobil -
Entergy - 500 Employees Entergy - 500
Chevron - 781 Employees Chevron - 78
• A recently opened 470,000-square foot state-of-the- ABHanukanedtrsamHrkuaogn-h-3e1,s3,0-0159••85 E0EmmEiTAnpmhpc6leoll2puoym-ldyoeaieeneycdeegsriesec4asm4l e5cdariemcgapilsuctsearhmeadpsunasutrwositetahsl 242-private beds Baker Hughe
• art hospital with a total of 246-beds and 10 operating of 1,650 employees Anadarko - 3
rooms Huntsman - 1
The hospital employs 925 people

Texas Children’s Hospital Memorial Hermann – The Woodlands

1.75-miles W, 11-min commute 3 4.5-miles SW, 9-min commute 4

• A 349,755-square foot hospital built Feb’2017 and • A 258-bed medical center with three professional
employs 834 people office buildings

• The hospital consists of 120 exam rooms, 32 acute • The medical center employs 2,454 people
care beds, 28 critical care beds, a 25-position
emergency department, and four operating rooms 15

executive property 45 financial Huntsman - 1,018 Employees appendix
summary details analysis market
overview
retail
1 HP - 2,400 Employees
STWhNe- W1,5o00oEdmlaplnoydesesMall (5.3-miles SW)
A» BS -16.030-mEmillpiolonyseqeusare feet of shopping and dining
EE»xn xteornOgMyveo-rb52i0l00-01E0mre,0pt0alo0ilyeEermsesployees
Dining food

C»h evAronnch- o78r 1stEomrepsloinyceleusde Dillard’s, M1]aScyt’asr, aNrotrdstrom, JCPenney, and Forever
AHBSAH»Wa nBPukSanN-edt-2rsO2SJ-a6,mH4a1rt1u0ko0cu,ta05ord0kgne0E,o-hEs0-mPo3em1iEor,snp3,mpt0cc-0ltol1ole5o9puy8ur5yldEeyor0eEmeetyBemyEseAspaameprnrlsodlnptoyh,llyoeiPrenoeyoekesptseeotdeslortygoiBeTa,hrBenaWKnaiodnosad, 111lARa564nennpdusTbaWlyicalo,treBrLawornaftey,.sUS&rtboNarenosbOlieun,tcJfliuattdneeires,&
6

PINECROFT DR EExnxteornWgMyho-itb5ei0lH0-o1Eu0ms,0pe0lBo0ylEaemcekspMloayrekeest, Williams Sonoma
DAVID MEMORIAL DR 2 BCA»Mah nkeaaevdrrr3aokH4rnkeu-oag-tc-7hSr38ee,1st3sr-0Ehe5m9o5eEpp0mtploEip(nym5legope,.ylsd8oeieyn-esimnegsialensd
SW) event destination

special

H» Pun-t2sH,m4y0a0tntE-Cm1e,p0nl1tor8iyceE7ems0p-lgouyesetsroom boutique hotel
AS»W BSN-U-61p0,s05c0Ea0mleEpmrleoptyaleoileyeseressand restaurants, such as Brooks Brothers, Michael Kors,
RESEARCH FOREST DR

ExxonCMhaorbmili-n1g0C,0h0a0rlEiem’sp,lMoyaegegsie’s, Orvis, Sur la Table, Tiffany & Co., and Z
EnterGgyal-le5r0ie0 Employees
5LAKE FRONT CIRCLE
3 ABHC»Wah nPkeaa-evd2rtrTa,oeH4hrnk0rueow0g-W-7hEa38oem,1osy3pd-0ElSl5mo9a5ynqEp0edmlueoEsspymaWleorpeayelstoeeeyDreswiesasytrisicat1(.45-.m6i-lem-loinlegslanSdWsca)ped water feature
21 SHWunNtst-hm1a,a5tn0c0-a1nE,m0b1ep8leoEnymjeoepysleodyeoensthe Water Taxi or by kayak. The Waterway includes
4 ABS -7630-0aEcmrepsloofyeoeffsice, retail, and residential
4 HEEHSEACBA»»CxnxWah nBuPxxykteSanNe-ooevdnt-r2nnrschrFRg-a6t,omMMHo4eir1ayh0gnka0nu,naoo0-5hoi0tvg-knbb50uaEea-7ehEii00r-mllns38deem0W1--Et,1ssp33ia,11mEpo0-0Els100moolo1n5mo9p.,,yt8u002o5pylchEeopt0080eEleedmoy00loemnoEsmeyssfspEEtymeepeetmmlieesohlclMrpleo,siyoepplosy1oenllitneoo2eytodeyye7scsp-seee,qmh2ee5su6ssoe0a4srlat-elmshfPqeepueaahatvivrtiClehiylleafiueasosetsenetArdos(foai5nrfmef.ittpc6haheei-lis,tmwhapeonaiardcllteede1,srf77oi0nrrSe,t0tsWihc0teak0)euw-trsoasqrnaultdlaserasenfdoaost
LAKE WOODLANDS DR 3 EC»nh teevrrHgoyons--t5s708a01pEpEmrmopxpliolmoyyeaeeteessly 75 evenStscfhroomoMlsarch to November

GROGANS MILL RD B»a kerTHhuegohffeisci-a5l5s0umEmm1pe]lroMyheoaemrskeWofhHCohuastrotenrSSymchpohonl y in1992
SIX PINES DR
5 Anadarko - 3,309 Employees
H»P uinntseOPmoucwtardnoeor-foc1tre,s0Cn,1Bte8eernEdfmteBeapatlrtuohry(ie&4neg.Bs9p443eyo-opmnudlia,lreBrse1estatSiBlWeurys2),,CsouscthPalsusAWcaodreldmMy aSrpkoertt,sM&arshalls

Mega Store, Office Max, Ross, and Ulta

6 Portofino Shopping Center (4.2-miles SW)
» Hosts dining options such as Buca di Beppo, BJ’s Restaurant and

Brewhouse, El Bosque Mexican Grill, Pie Town Café, and Pei Wei Asian

WOODLANDS PKWY Diner 1

16 » Shopping stores include Old Navy, Pe16tSmart, Sports Authority, DSW Shoe
Warehouse, Michael’s Arts and Crafts Store, and Bath & Body Works
10 11
13

executive property financial market appendix
summary details analysis overview

education

Lone Star College System Campuses Near the Property Include:
• Lone star college is the largest higher education institution in the
Lone Star College-Montgomery
Houston area and serves a 1,400-square mile area with a population (2.6-miles W)
of 2.1 million
• System-wide student enrollment is 89,150 as of Fall 2018 15,266 students enrolled
• The Lone Star System has more than 5,700 employees
• Contributes an annual economic impact of nearly $3 billion to the local Lone Star College-Creekside Center
and regional economy (11.6-miles SW)
• Offers 180 programs of study including associate degrees, workforce
certificates, life-long learning, dual credit courses, transfer courses, 1,155 students enrolled
online programs, and basic adult education and literacy and completed building a $15.4 million

Conroe ISD science center in Fall of 2017
• The largest employer in Montgomery County with over 4,100 employees

and serves over 61,000 students across 62 campuses
• The 13th largest district in the State and the 65th largest in the United

States
• One of the fastest growing school districts in the State with an average

enrollment growth of 1,500 students per year
• Graduation rate of 95.7% is among the highest in the State
• Supports three K-6 schools, 30 elementary schools, 7 Junior High

Schools, 10 high schools, 9 Intermediate Schools, and 3 Academies

17

executive property financial market appendix
summary details analysis overview

12

woodforest bank 45

1 stadium
THE WOODLANDS MALL | 1.3M SF Retail

2
MARKET STREET | 34-Acre Retail

suchma
elementary school

the market tx-242
at harper’s preserve harper’s trace

Gerald D. Irons, Sr.
Junior High School

18

executive property financial market appendix
summary details analysis overview

Gerald D. Irons, Sr. tx-242
Junior High School
suchma
the market elementary school
at harper’s preserve
firehouse lane
needham
fire & rescue

19

property
details

20

21

executive property financial market appendix
summary details analysis overview

firehouse lane

suchma
elementary school

harper’s school road

harper’s trace

22

executive property financial market appendix
summary details analysis overview

Need site plan

23

executive property financial market appendix
summary details analysis overview

community amenities

Complimentary Continental Breakfast and Coffee Bar
Resort-Style Swimming Pool
Fitness Center w/ Cardio & Strength Equipment
Poolside Entertainment Area w/ Grilling Station
Exuberant Courtyards w/ Grilling Stations
Elegant Clubhouse w/ Free Wi-Fi
Cyber Lounge w/ Mac Computers & Wi-Fi
Resident Social Lounge w/ Double Sided Fireplace
24/7 Package Concierge
Convenient Car Care Center w/ Vacuum
Controlled Access Entry Gates
Monthly Social Gatherings
Pet Friendly Community
Valet Trash and Recycling
Valet Dry Cleaning
Housekeeping Services Available

24

executive property financial market appendix
summary details analysis overview

25

executive property financial market appendix
summary details analysis overview

interior features

Spacious Gourmet Kitchens w/ Granite Countertops
Stainless Steel Whirlpool Appliance Package
Two Selections of Designer Kitchen Cabinets
Kitchen Islands *
Accent Tile Backsplash
Flat Top, Electric Range/Oven Combination
Nine Foot and Tray Ceilings
Elegant Double Crown Molding
Vinyl Plank Flooring *
Spacious Floor Plans
Built-In Bookcases/Desks/Entertainment Centers *
Upgraded Cut Pile Carpets
36” Vanity Height Cabinets w/ Double Sinks *
Garden Tubs & Shower* *
Designer Ceramic Tile Floors in Kitchen and Bath
Sunrooms w/ Juliet Balconies *
In-Unit Washer and Dryers *
High Speed Internet Media Cabling
USB Ports

* In select apartments

26

executive property financial market appendix
summary details analysis overview

27

executive property financial market appendix
summary details analysis overview

unit mix UNITS % OF TYPE UNIT SF MKT RENT/ MKT RENT/ TOTAL SF MONTHLY ANNUAL
UNIT/MO SF/MO MARKET MARKET
UNIT DESCRIPTION 48 12.50% 644 30,912 TOTAL TOTAL
1-BED/1-BATH 48 12.50% 760 $1,046 $1.62 36,480
1-BED/1-BATH 48 12.50% 773 $1,091 $1.44 37,104 $50,230 $602,760
1-BED/1-BATH 30 7.81% 793 $1,112 $1.44 23,790 $52,360 $628,320
1-BED/1-BATH 30 7.81% 840 $1,061 $1.34 25,200 $53,390 $640,680
1-BED/1-BATH 36 9.38% 1,144 $1,202 $1.43 41,184 $31,840 $382,080
2-BED/2-BATH 30 7.81% 1,169 $1,373 $1.20 35,070 $36,070 $432,840
2-BED/2-BATH 48 12.50% 1,169 $1,413 $1.21 56,112 $49,425 $593,100
2-BED/2-BATH 30 7.81% 1,243 $1,429 $1.22 37,290 $42,400 $508,800
2-BED/2-BATH 36 9.38% 1,351 $1,469 $1.18 48,636 $68,590 $823,080
3-BED/2-BATH 384 100% 968 $1,754 $1.30 371,778 $44,065 $528,780
TOTALS/AVERAGES $1,280 $1.32 $63,145 $757,740
$491,515 $5,898,180

unit breakdown fees & deposits

9% 53% 1 BEDROOM | 1 BATH APPLICATION FEE $50
38% 2 BEDROOM | 2 BATH 1 BEDROOM DEPOSIT $150
3 BEDROOM | 2 BATH 2 BEDROOM DEPOSIT $250
28 3 BEDROOM DEPOSIT $350
ADMINISTRATIVE FEE $150
SATELLITE DISH DEPOSIT $350
PEST CONTROL FEE $5
PET FEE $350 non-refundable
PET DEPOSIT $150
PET RENT $15/month
PET RESTRICTIONS 2 pet, 80 lbs., non-aggressive breeds

executive property financial market appendix
summary details analysis overview

construction features personnel

STYLE Garden style MANAGER 1 Full-Time
NUMBER OF BUILDINGS
FOUNDATION 16 three-story residential buildings ASSISTANT MANAGER 1 Full-time
14 detached garage buildings
1 leasing office/clubhouse LEASING CONSULTANTS 3 Full-Time (Lease Up)
1 maintenance shop
1 mailroom MAINTENANCE SUPERVISOR 1 Full-Time

Concrete post tension slabs MAINTENANCE ASSISTANT 1 Full-Time

EXTERIOR WALLS Stucco, Hardiplank, brick and stone PORTER 1 Full-Time

ROOF TYPE Pitched composition shingles HOUSEKEEPER 1 Full-Time
COURTESY OFFICER
FLOOR COVERING Vinyl plank TOTAL 1 lives on site; $624/
month
PAVING Concrete paved with curbs
9 + 1 Courtesy Officer

WIRING Copper

PIPING Pex, PVC parking

mechanical systems OPEN SURFACE SPACES 633
TANDEM SURFACE SPACES
ELECTRICITY Individually metered DETACHED GARAGES 32
WATER/SEWER Master-metered, sub-metered HANDICAP SPACES
HOT WATER Individual heaters TOTAL PARKING SPACES 100 (60% occupied)
HVAC Individually climate controlled units $100/garage
TRASH 100% billed to tenants
15

780 parking spaces
2.03 parking spaces/unit

* Plenty of space to add covered parking

29

executive property financial market appendix
summary details analysis overview

FLOOR
PLANS

a2 a3

1 Bedroom 1 Bath 1 Bedroom 1 Bath
810 SF 783 SF

30 a6a

1 Bedroom 1 Bath
770-872 SF

a4

1 Bedroom 1 Bath
769 SF

executive property financial market appendix
summary details analysis overview

FLOOR
PLANS

a6b a6c

1 Bedroom 1 Bath 1 Bedroom 1 Bath
770-872 SF 770-872 SF

b1

2 Bedroom 2 Bath
1,072 SF

31

executive property financial market appendix
summary details analysis overview

FLOOR
PLANS

b2 b4a

2 Bedroom 2 Bath 2 Bedroom 2 Bath
1,200 SF 1,201-1,319 SF

b4c

2 Bedroom 2 Bath
1,201-1,319 SF

b4b

2 Bedroom 2 Bath
1,201-1,319 SF

32

executive property financial market appendix
summary details analysis overview

FLOOR b7a
PLANS
2 Bedroom 2 Bath
1,121-1,261 SF

b7b

2 Bedroom 2 Bath
1,121-1,261 SF

b7c c1

2 Bedroom 2 Bath 3 Bedroom 2 Bath
1,121-1,261 SF 1,398 SF

33

financial
analysis

34

35

executive property financial market appendix
summary details analysis overview

pro forma

PRO FORMA FINANCIAL ANALYSIS

INCOME % of GSR Totals Per Unit Per SF
Gross Scheduled Rent 100.00% $5,528,748 $16,856 $16.65
Less: (Gain)/Loss-to-Lease
Gross Potential Income 9.00% 497,587 1,517 1.50
Less: Vacancy 91.00% $5,031,161 $15,339 $15.15
Less: Non-Revenue Units 5.00%
Less: Collection Loss 0.50% 276,437 843 0.83
Total Rental Income 0.25% 27,644 84 0.08
85.25% 13,822 42 0.04
Plus: Utility Reimbursements % of GSR $4,713,258 $14,370 $14.20
Plus: Parking 2.30% Totals Per Unit Per SF
Plus: Trash 1.46% 127,351 388 0.38
Plus: Other 1.27% 80,563 246 0.24
Total Other Income 2.65% 70,239 214 0.21
Effective Gross Income 7.68% 146,334 446 0.44
EXPENSES 92.93% 424,488 1,294 1.28
Repairs and Maintenance % of EGI $5,137,745 $15,664 $15.47
Payroll 3.83% Totals Per Unit Per SF
Administrative 8.62% 196,800 600 0.59
Marketing 1.60% 442,800 1,350 1.33
Trash 1.92% 82,000 250 0.25
Utilities 1.64% 98,400 300 0.30
Total Variable Expenses 4.42% 84,155 257 0.25
Taxes 22.02% 227,028 692 0.68
Franchise Tax 19.36% $1,131,183 $3,449 $3.41
Property Owners Association Fee 0.33% 994,802 3,033 3.00
Insurance 1.28% 17,006 52 0.05
Management Fee 2.55% 65,600 200 0.20
Total Operating Expenses 2.50% 131,200 400 0.40
Capital Reserves 48.04% 128,444 392 0.39
Total Expenses 1.28% $2,468,234 $7,525 $7.43
49.32% 65,600 200 0.20
36 Net Operating Income $2,533,834 $7,725 $7.63

$2,603,911 $7,939 $7.84

executive property financial market appendix
summary details analysis overview

underwriting assumptions

Gross Scheduled Rent (GSR) – Pro Forma Year 1 GSR is pro- Repairs and Maintenance – In Pro Forma Year 1, Repairs and Maintenance expenses are projected at $196,800 an-
jected at $5,528,748 annually, or $460,729 per month. nually, or $600 per unit, which are in line with surrounding comparable properties and historical Repairs and Mainte-
nance expenses.
Loss-to-Lease (LTL) – Pro Forma Year 1 LTL is projected at
$497,587 annually, or $41,466 per month. Payroll – In Pro Forma Year 1, Payroll expenses are projected at $442,800 annually, or $1,350 per unit, which are in
line with surrounding comparable properties and historical Payroll expenses.
Gross Potential Income (GPI) – Pro Forma Year 1 GPI is pro-
jected at $5,031,161 annually, or $419,263 per month. Administrative – In Pro Forma Year 1, Administrative expenses are projected at $82,000 or $250 per unit, which are
consistent with historical Administrative expenses and properties of this size.
Vacancy Loss – In Pro Forma Year 1, the Property is expected
to maintain at least a 95% occupancy rate. Marketing – In Pro Forma Year 1, Marketing expenses are projected at $98,400 annually, or $300 per unit, which are
consistent with historical Marketing expenses and properties of this size.
Non-Revenue Units – In Pro Forma Year 1, Non-Revenue Units
are assumed at 0.50% of GSR. Trash Expense – In Pro Forma Year 1, Trash Expense expenses are projected at $84,155 annually, or $257 per unit,
which are consistent with historical Trash Expense expenses and properties of this size.
Collection Loss – In Pro Forma Year 1, Collection Loss is
assumed at 0.25% of GSR. Utilities – The property has an average Utilities cost for apartment communities of this quality and area. Utilities are
based on historical operations and grown 3.00%. They are projected at $227,028 annually, or $692 per unit.
Total Rental Income – Total Rental Income equals GPI less
Vacancy, Non-Revenue Units, and Collection Loss. Pro Forma Real Estate Taxes – Heights at Harper’s Preserve is located in Montgomery County. The 2018 property assessment
Year 1 totals $4,713,258 annually, or $392,771 per month. was $26,000,000 and the assessment for 2019 increased to $30,000,000. The Pro Forma Year 1 Tax expense is calcu-
lated by growing the 2019 assessed value by 5% and multiplying by the 2019 tax rate (3.1581 per $100). The projected
Utility Reimbursements – Utility Reimbursements for Pro For- Pro Forma Year 1 taxes are $994,802 or $3,033 per unit.
ma Year 1 is projected at $127,351 annually, or $388 per unit.
This value is based off Dec’19 T12 actuals and grown 3.0%. Franchise Taxes – In Pro Forma Year 1, Franchise Tax is calculated by taking 33.1% of 1% of Effective Gross Income,
which equates to $17,006 per year.
Parking – Parking Income for Pro Forma Year 1 is projected
at $80,563 annually, or $246 per unit. This value is based off Property Owners Association Fee – In Pro Forma Year 1, Property Owners Association Fee expense is projected at
Dec’19 T12 actuals and grown 3.0%. $65,600, or $200 per unit. This is the annual Property Owners Association Fee for the Harper’s Preserve Master
Planned Community
Trash – Trash Income for Pro Forma Year 1 is projected at
$70,239 annually, or $214 per unit. This value is based off Insurance – In Pro Forma Year 1, Insurance expenses are projected at $131,200, or $400 per unit. Insurance expenses
Dec’19 T 12actuals and grown 3.0%. vary depending on the coverage and deductible selected by the investor, and whether the Property is included on a
single-asset or a blanket policy.
Other – Other Income for Pro Forma Year 1 is projected at
$70,239 annually, or $214 per unit. This value is based off
Dec’19 T12 actuals and grown 3.0%.

Effective Gross Income – Effective Gross Income equals Total
Rental Income plus Utility Reimbursements, Parking, Trash,
and Other Income is projected at $5,137,745 in Pro Forma Year
1, or $428,145 per month.
income Management Fee – Management Fee is projected to be 2.50% of Effective Gross Income, which equals $128,444
expenses annually, or $392 per unit in Pro Forma Year 1. This is in line with properties in this submarket of this size and quality.

Capital Reserves – The Property was built in 2016. Pro Forma Year 1 Capital Reserves are projected at $65,600 annu-
ally, or $200 per unit.

Total Operating Expenses – Total Operating Expenses (including Capital Reserves) in Pro Forma Year 1 are projected
to be $2,533,834 annually, or $7,725 per unit.

Net Operating Income – Pro Forma Year 1 Net Operating Income (after Capital Reserves) is 37
projected at $2,603,911.

market
overview

38

39

executive property financial market appendix
summary details analysis overview

rent comparables

# PROPERTY YOC OCCUPANCY UNIT TYPE # OF UNITS AVG. SF MARKET MARKET EFFECTIVE EFFECTIVE EFF. RENT
RENT RENT PSF RENT RENT PSF DELTA
1-Bed 257 823 $1,895
2-Bed 125 1,287 $2,899 $2.30 $1,579 $1.92 (Comp vs. Subject)
91% 8 1,648 $4,128 $2.25 $2,416
3-Bed 390 989 $2,263 $2.50 $3,440 $486
Total/Avg. $2.29 $1,885
1 One Lakes Edge 2015 162 763 $1,615 $1.88 $1,042
127 1,156 $2,229
25 1,414 $3,159 $2.09 $1,749
314 974 $1,986
$1.91 $627
265 759 $1,484
2 Millennium Six 2014 1-Bed 118 1,176 $2,170 $2.12 $1,476 $1.93 $383
Pines, The 2-Bed 8 1,476 $3,035 $1.93 $2,033 $1.76 $659
91% 391 900 $1,723 $2.23 $3,056 $2.16 $1,365
3-Bed $2.04 $1,827 $1.88 $568
Total/Avg. 276 770 $1,535
174 1,307 $2,336
3 Millennium 2010 1-Bed 450 978 $1,845 $1.96 $1,484 $1.96 $391
Waterway, The 2-Bed $1.85 $2,170 $1.85 $796
91% 261 777 $1,181 $2.06 $3,035 $2.06 $1,344
3-Bed 80 1,265 $1,721 $1.92 $1,723 $1.92 $464
Total/Avg. 32 1,538 $2,052
27 1,917 $2,349
4 Boardwalk At 2006 1-Bed 400 1,012 $1,438 $1.99 $1,299 $1.69 $206
Town Center 40% 2-Bed $1.79 $1,977 $1.51 $603
244 779 $1,535 $1.89 $1,561 $1.60 $303
Total/Avg. 125 1,242 $2,317
18 1,501 $2,766
5 Mansions 2016 1-Bed 27 1,917 $2,349 $1.52 $1,097 $1.41 $4
Woodland, The 2-Bed 389 971 $1,843 $1.36 $1,598 $1.26 $224
95% 3-Bed $1.33 $1,905 $1.24 $214
4-Bed 149 795 $1.23 $2,181 $1.14 N/A
Total/Avg. 161 1,170 $1.42 $1,335 $1.32 $76
18 1,398
1-Bed 328 1,012 $1.97 $1,378 $1.77 $286
$1.87 $2,064 $1.66 $690
TOTALS/ 2-Bed $1.84 $2,591 $1.73 $900
AVERAGES 92% 3-Bed $1.23 $2,181 $1.14 N/A
$1.90 $1,655 $1.71 $396
4-Bed

Total/Avg.

* Broadwalk at Town Center is excluded from the avg. occupancy as it is in lease-up

SUBJECT Heights at 2016 1-Bed $1,145 $1.44 $1,093 $1.37
Harper's 2-Bed $1,587 $1.36 $1,374 $1.18
Preserve 94% $1,929 $1.38 $1,691 $1.21
3-Bed $1,405 $1.39 $1,259 $1.25
Total/Avg.

40 * Subject rents and occupancy are based on the current rent roll and may not tie to the financials

executive property financial market appendix
summary details analysis overview

rent comp map

MANSIONS WOODLANDS

THE WOODLANDS

BOARDWALK
AT TOWN CENTER

ONE LAKE’S EDGE Woodlands Pkwy MILLENNIUM WATERWAY

MILLENNIUM SIX PINES

41

appendix

42

43

executive property financial market appendix
summary details analysis overview

news article

ECONOMIC OUTLOOK CONFERENCE TAKEAWAYS: HEALTH CARE NOW TOP are Conroe ISD, Memorial Hermann The Woodlands Medical Center and ExxonMobil.
EMPLOYER IN THE WOODLANDS Anadarko was bought by Occidental Petroleum Corp. in 2019, which is now at the
fourth position with 2,020 employees in The Woodlands area compared to 2,666
By Vanessa Holt that Anadarko had employed.
Community Impact Newspaper
February 21, 2020 Jesse Thompson, a senior business economist with the Houston branch of the
Federal Reserve Bank of Dallas, said that economic expansion is continuing, with
Health care has risen to the position of top employment sector in The Woodlands modest regional growth expected in 2020. He said the Houston Metropolitan area
region, overtaking energy, according to information released at The Woodlands Area job market grew by 1.6%, or 55,000 jobs, from December 2018-December 2019.
Chamber of Commerce’s annual Economic Outlook Conference at The Woodlands
Waterway Marriott Hotel and Convention Center on Feb. 21. Thompson said there will probably not be considerable growth in the energy industry
in the next two years.
Health care jobs now make up 26% of The Woodlands area’s nonretail jobs, with
more than 10,000 jobs in the area, said Gil Staley, CEO of The Woodlands Economic “In terms of jobs, I don’t think we can count on the energy industry to have a lot of
Development Partnership. jobs this year and probably not next year unless something ... happens to cause oil
prices to increase substantially,” Thompson said.
The 2020 conference focused on the theme “Innovative Solutions in a Diverse
Community,” highlighting economic growth locally and nationally. Among other speakers at the event, U.S. Rep. Kevin Brady, R-The Woodlands,
discussed economic optimism and the effects of the tax code revisions that took
The energy sector has dropped from 27% to 22.4% of local jobs, but growth has effect in 2017. He said since that code was introduced, 3.2 million additional jobs
occurred within individual businesses, as ExxonMobil has added more than 500 have been created, and unemployment is at a 50-year low.
jobs and moved to the top tier of regional employers, Staley said.

“We have for the first time more job openings than unemployed,” Brady said.
“We’re excited about this decade ... and what the future holds for us,” Staley said.

Among other local data shared at the conference, The Woodlands Area EDP He also said he believes income inequality is becoming less severe.
released its list of major nonretail employers for 2020. Major employers are defined
as companies with 100 or more employees. “Income inequality is declining in all measures for the first time in decades,” Brady
said.

The top three employers in the region last year were Conroe ISD, Anadarko Petroleum
Corp. and Memorial Hermann The Woodlands Medical Center. In 2020, the top three Brady said he hopes to see the 2017 tax cuts made permanent.

44

executive property financial market appendix
summary details analysis overview

news article

ECONOMIC OUTLOOK CONFERENCE
TAKEAWAYS: HEALTH CARE NOW TOP
EMPLOYER IN THE WOODLANDS

By Vanessa Holt
Community Impact Newspaper
February 21, 2020

45

executive property financial market appendix
summary details analysis overview

information on brokerage services

LICENSE HOLDER CONTACT TEXAS LAW REQUIRES ALL REAL ESTATE LICENSE HOLDERS TO GIVE THE FOLLOWING INFORMATION ABOUT BROKERAGE
INFORMATION: This notice is being SERVICES TO PROSPECTIVE BUYERS, TENANTS, SELLERS AND LANDLORDS.
provided for information purposes. It
does not create an obligation for you TYPES OF REAL ESTATE LICENSE HOLDERS:
to use the broker’s services. Please • A BROKER is responsible for all brokerage activities, including acts performed by sales agents sponsored by the broker.
acknowledge receipt of this notice below • A SALES AGENT must be sponsored by a broker and works with clients on behalf of the broker.
and retain a copy for your records.
A BROKER’S MINIMUM DUTIES REQUIRED BY LAW (A client is the person or party that the broker represents):
Southwest Residential Partners, Inc. • Put the interests of the client above all others, including the broker’s own interests;
BROKER FIRM NAME • Inform the client of any material information about the property or transaction received by the broker;
456477 • Answer the client’s questions and present any offer to or counter-offer from the client; and
LICENSE NO. • Treat all parties to a real estate transaction honestly and fairly.
aimee.hawthorne@ngkf.com
EMAIL A LICENSE HOLDER CAN REPRESENT A PARTY IN A REAL ESTATE TRANSACTION:
713-425-5430
PHONE 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
David Mitchell duties above and must inform the owner of any material information about the property or transaction known by the agent, including
DESIGNATED BROKER’S NAME information disclosed to the agent or subagent by the buyer or buyer’s agent.
499823
LICENSE NO. AS AGENT FOR BUYER/TENANT: The broker becomes the buyer/tenant’s agent by agreeing to represent the buyer, usually through a
david.mitchell@ngkf.com written representation agreement. A buyer’s agent must perform the broker’s minimum duties above and must inform the buyer of any
EMAIL material information about the property or transaction known by the agent, including information disclosed to the agent by the seller
713-425-5421 or seller’s agent.
PHONE
AS AGENT FOR BOTH - INTERMEDIARY: To act as an intermediary between the parties the broker must first obtain the written
agreement of each party to the transaction. The written agreement must state who will pay the broker and, in conspicuous bold or
underlined 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 and

buyer) 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; and
• any confidential information or any other information that a party specifically instructs the broker in writing not to disclose,

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 the buyer.
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.

46

executive property financial market appendix
summary details analysis overview

disclaimer

The information contained herein has been obtained from sources deemed reliable but has not been verified and no guarantee, warranty
or representation, either express or implied, is made with respect to such information. Terms of sale or lease and availability are subject
to change or withdrawal without notice.

Newmark Knight Frank (the “Agent”) has been engaged as the exclusive sales representative for the sale of Heights at Harper’s Preserve,
17116 Harper’s Trace, Conroe, TX 77385 (the ”Property”) by the “Seller”.

OFFERING MEMORANDUM
This Memorandum does not constitute a representation that the business or affairs of the Property or Seller since the date of
preparation (January 2020) of this Memorandum have remained the same. Analysis and verification of the information contained in this
Memorandum are solely the responsibility of the prospective purchaser.

Additional information and an opportunity to inspect the Property will be made available upon written request of interested and qualified
prospective purchasers. Seller and Agent each expressly reserve the right, at their sole discretion, to reject any or all expressions of
interest or offers regarding the Property, and/or terminate discussions with any party at any time with or without notice. Seller reserves
the right to change the timing and procedures for the Offering process at any time in Seller’s sole discretion. Seller shall have no legal
commitment or obligations to any party reviewing this Memorandum, or making an offer to purchase the Property, unless and until such
offer is approved by Seller, and a written agreement for the purchase of the Property has been fully executed and delivered by Seller and
the Purchaser thereunder.

This Memorandum and the contents, except such information which is a matter of public record or is provided in sources available to the
public, are of a confidential nature. By accepting this Memorandum, you agree that you will hold and treat it in the strictest confidence,
that you will not forward, photocopy or duplicate it, that you will not disclose this Memorandum or any of the contents to any other entity
(except to outside advisors retained by you, if necessary, for your determination of whether or not to make a proposal and from whom
you have obtained an agreement of confidentiality) without the prior written authorization of Seller or Agent, and that you will not use
this Memorandum or any of the contents in any fashion or manner detrimental to the interest of Seller or Agent.

47

More information is available on our website at:

http://arausa.listinglab.com/HeightsAtHarpersPreserve

INVESTMENT SALES debt & structured finance

CENTRAL - HOUSTON David Wylie David Mitchell Adam Allen David Schwarz
1700 Post Oak Blvd david.wylie@ngkf.com david.mitchell@ngkf.com adam.allen@ngkf.com david.schwarz@ngkf.com
2 BLVD Place, Suite 400 T 713-425-5410 T 713-425-5421 T 713-425-5433 T 713-337-5811
Houston, TX 77056 M 832-526-5206 M 713-503-2513 M 713-824-6066 M 713-412-9055
T 713-599-1800 | F 713-599-1801
Zach Springer Thomas Alleman Tip Strickland Purvesh Gosalia
zach.springer@ngkf.com thomas.alleman@ngkf.com tip.strickland@ngkf.com purvesh.gosalia@ngkf.com
T 713-425-5428 T 713-425-5434 T 713-337-5810 T 713-300-7954
M 713-897-9670 M 713-305-3827 M 832-724-4288 M 313-570-5221