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WINDCREST ON WESTVIEW - Houston Income Properties_ Inc

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					912 S. Capital of Texas Hwy.                                                                                                                                                                                                                             Main Office ~ 6363 Woodway
Suite 230                                                                                                                                                                                                                                                                   Suite 370
Austin, TX 78746                                                                                                                                                                                                                                                  Houston, TX 77057
Telephone: 512-610-8000                                                                                                                                                                                                                                    Telephone: 713-783-6262
Fax: 512-610-8001                                                                                                                                                                                                                                                  Fax: 713-783-6767
                                                                                            www.houstonincomeproperties.com
                                                                                                      Broker's License #0393404
BROKER: Bishale Patel                                                                                                                                                    Email Address: bpatel@houstonincomeproperties.com

                          Windcrest on Westview
9595 Westview Drive
                                                                        "All Cash"
Houston, TX 77055                                             Buyer to Obtain New Financing
Key Map:     450X
           FINANCIAL INFORMATION                                          PROPERTY INFORMATION

Asking Price:                                     $3,550,000           Units:                                          154
Price/Unit                                              $23,052        Avg Size:                                       890
Price / SF                                               $25.89        Date Built:                   1974
Seller's Equity:                                  $3,550,000           "E" Mtr/"W" Mtr Individual / Master
Est "New Loan" Dn Pmt.:       $1,420,000                               Roof:                                           Flat
Est. Down Payment % of Price:       40%                                Land Area (Acres):                             4.48     The Windcrest on Westview Apartments is located in
    Buyer to Obtain New Financing         Rentable Sq Ft:           137,105                                                    northwest Houston, Texas. The property is east of Beltway
        TOTAL COLLECTIONS (Approximately 94% Occupancy as of 7-31-09)                                                          8 and west of 610 Loop. The property is located in an area
   Mth.   Avg Apr-Jun 09     Jun 09           May 09            Apr 09                                                         of Spring Branch that has become very popular due to its
   Coll.             $76,715                       $75,106                   $75,677                    $79,361                close-in location and convenient access to shopping, dining
  % BY UNIT TYPE                                   Unit Mix Stats                               % BY UNIT S.F.
                                                                                                                               and employment. A major revitalization of the area is taking
                                                                                                                               place causing healthy increases in property values. The
   1%                                                              1%                                                          complex is individual metered for electricity. The property
                    17%                                                               17%                                      has Low income Tax Credit Restrictions in place
                                      23%                                                              23%
           4%                                                             4%                                                   (tenants must not make more than 60% of the area
                                                                                                                               median income, adjusted by family size), the original tax
                                                                                   29%              26%                        credits have been spent and the 15 year compliance
                       55%
                                                                                                                               period ends December 2009 at which time the (15 Yr)
                                                                                                                               extended use period begins.
                                                                                                                                                                                                                UNIT MIX

                                                                      675      945       900      940      1,200       300                                               Utilities                                                                                                                             Rent Per
        EFF         1-1       2-1.5        2-1        3-2                                                                         #Units           Type                                            SF                      Total SF                            Rent              Total Rent
                                                                                                                                                                         Unit/Mt                                                                                                                                 SF
                                                                                                                                     27            1-1                                         675                         18,225                             $555                  $14,985                     0.822
                                                   COMMENTS                                                                          36           2-1.5                                        945                        34,020                              $650                  $23,400                     0.688
1. OFFERED "ALL CASH" GOOD SPRING BRANCH LOCATION!                                                                                   40            2-1                                         900                         36,000                             $625                  $25,000                     0.694
2.  The above collection figures have been reduced to reflect the bad debt  expense,                                                 44            2-1                                         940                         41,360                             $630                  $27,720                     0.670
which the owner reports in the property's expenses and not in the property's                                                          6            3-2                                        1,200                         7,200                             $800                   $4,800                     0.667
income section.                                                                                                                       1           EFF                                          300                           300                              $505                    $505                      1.683
3. Good Condition ~ Substantial Rehab in 1992‐1993 in accordance with Tax Credit                                                    154                                   94%                  890                        137,105                             $626                  $96,410                     0.703
Program                                                                               total units                                                                         occ                 avg sf                             total/sf                 avg rent                  total rent                 avg$/sf
4. $195K in capital expenditure for the trailing 12 mths from Jun 09                                                                                                      RENT COMPARABLES (O'Connor on Line)
5.  A new manager has been put in place and collections are  improving
6. Blocks from numerous entertainment venues, Major employers in close proximity                                                                                         Yr Blt               Occ               #Units               Meter Avg SF                                  Avg Rent                     P/SF
                                                                                                                               Property Name
                                                                                                                                  Hunter's Chase     1969                                     85%                 328                                           785                        $573                 0.73
      Windcrest on Westview                                                                                                     Kempwood Hollow 1978                                          91%                 327                                           923                        $698                 0.76
                                                                                                                                    Spring Pines     1964                                     96%                 136                                           870                        $632                 0.73
                                                                                                                               Spring Shadows South 1978                                      89%                 549                                           856                        $652                 0.76
                                                                                                                                      Westway        1971                                     90%                 316                                           965                        $727                 0.75
                                                                                                                               Totals/Avgs Comps                                              90%                1,656                                          880                        $656                 0.75
                                                                                                                               Windcrest on Westview 1974                                     94%                 154                                           890                        $626                 0.70
                                                                                                                               Spring Branch "C" SubMkt.                                      89%                8,433                                          909                        $642                 0.71
                                                                                                                               Houston "C" Market                                             86%               140,555                                         826                        $582                 0.70

                                                                                                                                                                                                                                                        Rent Comparison Chart
                                                                                                                                  $0.80
                                                                                                                                                                                               Spring Shadows




                                                                                                                                  $0.70
                                                                                                                                                                                                South, $0.76
                                                                                                                                                     Spring Branch "C"




                                                                                                                                                                                                                                                                                             Westview, $0.70
                                                                                                                                                                          Houston "C" Mkt.,
                                                                                                                                                      SubMkt., $0.71




                                                                                                                                  $0.60
                                                                                                                                                                                                                                                                                              Windcrest on
                                                                                                                                                                                                                 Hollow, $0.76




                                                                                                                                                                                                                                                         Hunter's Chase,
                                                                                                                                                                                                                                       Westway, $0.75




                                                                                                                                                                                                                                                                           Spring Pines,
                                                                                                                                                                                                                  Kempwood




                                                                                                                                  $0.50
                                                                                                                                                                                                                                                                              $0.73
                                                                                                                                                                                                                                                             $0.73
                                                                                                                                                                               $0.70




                                                                                                                                  $0.40
                                                                                                                                  $0.30
                                                                                                                                  $0.20
Directions to Windcrest on Westview: From Downtown Houston, take I-10 W
                                                                                                                                  $0.10
towards San Antonio, approximately 10.1, to the Blalock Rd. exit, take the exit and
turn right onto Blalock Rd. Take Blalock to Westview Dr. and turn left the property                                               $0.00
will be on the corner of Cedar Post Ln and Westview Dr. on the Left hand side.                                                                                                                                                                           SUBJECT
Disclaimer: The information contained herein has either been given to us by the owner of the property or obtained from sources that we deem reliable. We have no reason to doubt its accuracy but we do not guarantee it. Vacancy factors used herein are an
arbitrary percentage used only as an example. It does not necessarily relate to actual vacancy, if any. The value of the investment is dependent upon these estimates and assumptions made above, as well as the investment income, the tax bracket and other
factors which your tax advisor and/or legal counsel should evaluate. THE PROSPECTIVE BUYER SHOULD CAREFULLY VERIFY EACH ITEM OF INCOME, EXPENSE, AND ALL OTHER INFORMATION CONTAINED HEREIN, and should also perform a
detailed inspection of the property. We have not determined whether the property complies with city ordinances and recommend that you determine whether or not the property complies with deed restrictions and the City of Houston life safety ordinance, whether
or not a certificate has been issued, and whether or not the property contains asbestos, lead paint and/or mold and whether or not the property lies within a flood plain .
912 S. Capital of Texas Hwy.                                                                                                                                                              Main Office ~ 6363 Woodway
Suite 230                                                                                                                                                                                                    Suite 370
Austin, TX 78746                                                                                                                                                                                   Houston, TX 77057
Telephone: 512-610-8000                                                                                                                                                                    Telephone: 713-783-6262
Fax: 512-610-8001                                                                                                                                                                                 Fax: 713-783-6767
                                                                                   www.houstonincomeproperties.com
                                                                                         Broker's License #0393404
Agent: Bishale Patel                                                                                                                                          Email: bpatel@houstonincomeproperties.com

                   Windcrest on Westview                                                                                                        Rent Comparables
9595 Westview Dr
Houston, TX 77055
Key Map:        450X
                                          Hunter's Chase
                                               ●
                                                   Located 2.3 mile northwest of the Subject
                                               ● # Units:                                     328

                                               ● Avg Size Unit:                               785

                                               ● Avg. Rent Per Unit:                         $573

                                               ● Avg Rent / SF                               $0.73

                                             Spring Pine
                                               ●
                                                   Located 1.8 miles west of the Subject
                                               ● # Units:                                     136

                                               ● Avg Size Unit:                               870

                                               ● Avg. Rent Per Unit:                         $632

                                               ● Avg Rent / SF                               $0.73

                                        Kempwood Hollow
                                               ●
                                                   Located 3.4 miles northwest of the Subject
                                               ● # Units:                                     327

                                               ● Avg Size Unit:                               923

                                               ● Avg. Rent Per Unit:                         $698

                                               ● Avg Rent / SF                               $0.76

                                     Spring Shadows South
                                               ●
                                                   Located 3.5 miles northwest of the Subject
                                               ● # Units:                                     549

                                               ● Avg Size Unit:                               856

                                               ● Avg. Rent Per Unit:                         $652

                                               ● Avg Rent / SF                               $0.76

                                               Westway
                                               ●
                                                   Located 2.7 miles northwest of the Subject
                                               ● # Units:                                     316
                                                                                                                                                      Apartment Rent Comparables
                                               ● Avg Size Unit:                               965           Property Name                    Yr Blt        Occ         #Units       Notes       Avg SF         $/Unit         $/SF
                                                                                                                 Hunter's Chase
                                                                                                                                             1969          85%          328                       785           $573         0.730
                                               ● Avg. Rent Per Unit:                         $727           10000 Hammerly
                                                                                                                   Spring Pine
                                                                                                                                             1964          89%          136                       870           $632         0.726
                                               ● Avg Rent / SF                               $0.75          1554 Gessner
                                                                                                               Kempwood Hollow
                                                                                                                                             1978          91%          327                       923           $698         0.756
                                    Windcrest on Westview                                                   9999 Kempwood
                                                                                                             Spring Shadows South            1978          89%          549                       856           $652         0.762
                                                                                                            10105 Kempwood
                                                                                                                     Westway
                                                                                                                                             1971          90%          316                       965           $727         0.753
                                                                                                             10580 Hammerly

                                                                                                            Average Comps Only               1972          89%         331                        880           $656          0.75
                                                                                                            Windcrest on Westview 1979                     90%         154                        890           $626          0.70
                                                                                                            Spring Branch "C" SubMkt.                      89%        8,433                       909           $642          0.71
                                                                                                            Houston "C" Market                             86%       140,555                      826           $582          0.70
Disclaimer: The information contained herein has either been given to us by the owner of the property or obtained from sources that we deem reliable. We have no reason to doubt its accuracy but we do not guarantee it. Vacancy
factors used herein are an arbitrary percentage used only as an example. It does not necessarily relate to actual vacancy, if any. The value of the investment is dependent upon these estimates and assumptions made above, as
well as the investment income, the tax bracket and other factors which your tax advisor and/or legal counsel should evaluate. THE PROSPECTIVE BUYER SHOULD CAREFULLY VERIFY EACH ITEM OF INCOME, EXPENSE,
AND ALL OTHER INFORMATION CONTAINED HEREIN, and should also perform a detailed inspection of the property. We have not determined whether the property complies with city ordinances and recommend that you
determine whether or not the property complies with deed restrictions and the City of Houston life safety ordinance, whether or not a certificate has been issued, and whether or not the property contains asbestos, lead paint and/or
mold and whether or not the property lies within a flood plain .
912 S. Capital of Texas Hwy.                                                                                                                                                    Main Office ~ 6363 Woodway
Suite 230                                                                                                                                                                                          Suite 370
Austin, TX 78746                                                                                                                                                                         Houston, TX 77057
Telephone: 512-610-8000                                                                                                                                                           Telephone: 713-783-6262
Fax: 512-610-8001                                                                                                                                                                         Fax: 713-783-6767
                                                                             www.houstonincomeproperties.com
                                                                                      Broker's License #0393404
BROKER: Bishale Patel                                                                                                                 Email Address: bpatel@houstonincomeproperties.com

                  Windcrest on Westview
9595 Westview Drive
Houston, TX 77055
Key Map:       450X
                  Regional Economy
 The Texas Economy: Texas economy continues to create more jobs.
Industries including education, health services, leisure and hospitality and
the government sector had more jobs in June 2009 than in June 2008.
 The state’s education and health services industry added 58,900 jobs
from June 2008 to June 2009, an annual growth rate of 4.6 percent. Jobs
gained consisted of 59,900 in health care and social assistance. The states
educational services lost 1,000. The state’s government sector added
40,600 jobs from June 2008 to June 2009, an annual growth rate of 1.5
percent. Government job gains consisted of 23,700 in local government,
11,900 in state government and 5,000 in federal government. The state’s
leisure and hospitality industry gained 3,000 jobs from June 2008 to June
2009, an annual growth rate of 0.3 percent.
 The next quarter century should be marked by prosperity in Texas, driven
by population and job growth. By 2030, the state is expected to have
added 13.6 million people, the equivalent of another Dallas‐Fort Worth,
San Antonio, Houston and Corpus Christi combined.

 The Houston Economy: The City of Houston, the largest city in Texas
                                                                                                                                      COMPETITIVE UNIT MIX ANALYSIS
and the fourth largest city in the United States is home to a diverse array
of industries and cultures. Houston is home to the sixth largest port in                                   Property Name
                                                                                                                                       1B AVERAGE                        2B AVERAGE                   3B AVERAGE
the world and is located in Harris County, the nations third most populace
                                                                                                           Windcrest on
                                                                                                                                  SQ FT RATE P/SF                 SQ FT     RATE        P/SF SQ FT RATE P/SF
county. According to economist Barton Smith, even with a slow down,                                         Westview
Houston's economy is much better off than the rest of the nation, the                                        SUBJECT
                                                                                                                                    675      $555     $0.82        928      $634        $0.68 1,200 $800         $0.67
area's dominance in the energy industry and its strong job growth would
                                                                                                         Hunter's Chase             605      $468     $0.77        833      $574        $0.69 1,205 $785         0.651
help the region avoid major effects of a major slowdown or a recession.
 Since the 80's Houston has reclaimed its title as energy capital of the U.S.                            Kempwood Hollow            836      $648     $0.78        1,100    $797        $0.72     -        -          -
which does not necessarily have to be oil; Vestas, the world's largest
wind‐turbine manufacturer, announced plans for a new U.S. research                                         Spring Pines             665      $538     $0.81        845      $646        $0.76 1,130 $725         $0.64
center, and has picked Houston out of 42 states that lined up to make                                     Spring Shadows
sales pitches. Houston will be rewarded with hundreds of jobs, millions in                                                          756      $595     $0.79        925      $660        $0.71 1,296 $990         0.764
                                                                                                               South
tax revenue, and green‐business cachet. Since the 80's Houston has also
                                                                                                             Westway                575      $560     $0.97        887      $677        $0.76 1,231 $813          0.66
added aerospace, technology and medical companies to the mix,
generating over 100,000 jobs in 2008. Other factors, driving Houston's                                       Avg Comps              687      $562     $0.82        918      $671        $0.73 1,216 $828         $0.68
economy that are worth mentioning are the Texas Medical Center (the                                       "C" Submarket             677      $528     $0.78        957      $643        $0.67 1,286 $762         $0.59
largest medical center in the world), which brings in international visitors;                          Houston "C" Market           666      $489     $0.73        942      $628        $0.67 1,205 $772         $0.64
NASA, which brings in lucrative government contracts; and the Port of                                                                  {Source: O'Connor Data Service}
                                                                                                                          The rents below are the rents used in the pro forma
Houston.                                                                                                                                                        Current                                 LURA/TDHC
Even in Houston the current credit crunch has slowed the sale of homes,                                  #Units        Type         SF       Total SF                      Total Rent     Rent/SF
                                                                                                                                                                 Rent                                   Max. Rents
but on a positive note, this allows the apartment market to see solid                                      27          1-1  675              18,225             $565       $15,255         0.837               $687
demand growth, driven by continued local job growth and by the tighter                                     36         2-1.5 945              34,020             $670       $24,120         0.709               $825
credit standards that keep renters from becoming homeowners.                                               40          2-1  900              36,000             $645       $25,800         0.717               $825
                                                                                                           44          2-1  940              41,360             $660       $29,040         0.702               $825
                                                                                                           6           3-2 1,200             7,200              $825       $4,950          0.688               $953
                                                                                                           1          EFF   300               300               $526        $526           1.753               $642

                                                                                                          154                      890 137,105                  $647       $99,691         0.727
                                                                                                       total units                avg/sf       total/sf         avg/rent   total rent      avg$/sf
                                                                                                                          Rent Comps compared with Pro forma rents above
                                                                                                                                   Yr Blt    Occ     #Units Notes Avg SF                 Avg Rent              P/SF
                                                                                                       Property Name
                                                                                                         Hunter's Chase      1969           85%       328                   785           $573                 0.73
                                                                                                        Kempwood Hollow      1978           91%       327                   923           $698                 0.76
                                                                                                          Spring Pines       1964           96%       136                   870           $632                 0.73
                                                                                                        Spring Shadows South 1978           89%       549                   856           $652                 0.76
                                                                                                              Westway        1971           90%       316                   965           $727                 0.75
                                                                                                       Totals/Avgs Comps                    90%      1656                   880           $660                 0.75
                                                                                                       Pro forma rents (Subject)                          154                890          $647                 0.73
Disclaimer: The information contained herein has either been given to us by the owner of the property or obtained from sources that we deem reliable. We have no reason to doubt its accuracy but we do not guarantee it.
Vacancy factors used herein are an arbitrary percentage used only as an example. It does not necessarily relate to actual vacancy, if any. The value of the investment is dependent upon these estimates and assumptions
made above, as well as the investment income, the tax bracket and other factors which your tax advisor and/or legal counsel should evaluate. THE PROSPECTIVE BUYER SHOULD CAREFULLY VERIFY EACH ITEM
OF INCOME, EXPENSE, AND ALL OTHER INFORMATION CONTAINED HEREIN, and should also perform a detailed inspection of the property. We have not determined whether the property complies with city
ordinances and recommend that you determine whether or not the property complies with deed restrictions and the City of Houston life safety ordinance, whether or not a certificate has been issued, and whether or not
912 S. Capital of Texas Hwy.                                                                                                             Main Office ~ 6363 Woodway
Suite 230                                                                                                                                                   Suite 370
Austin, TX 78746                                                                                                                                  Houston, TX 77057
Telephone: 512-610-8000                                                                                                                    Telephone: 713-783-6262
Fax: 512-610-8001                                                                                                                                  Fax: 713-783-6767
                                                           www.houstonincomeproperties.com
                                                                 Broker's License #0393404
BROKER: Bishale Patel                                                                                     Email Address: bpatel@houstonincomeproperties.com
                                                                                               AMENITIES (Features Vary By Individual Floor Plan )
                Windcrest on Westview
9595 Westview Drive                   Good Upside Potential
Houston, TX 77055                       with Stabilization                       Dishwashers, Ceiling Fans, Mini-Blinds, Walk-In Closets, Frost-Free Refrigerators,
Key Map:      450X                                                             Breakfast Bars, Perimeter Fence, Swimming, Balconies, Controlled Access Gates, Tot-
                                          PROPERTY TAX INFOR.                                      Lot, School Bus Pick-Up, Two Laundry Rooms,
                                               HCAD NO.
                                                   681430000025
                                     Taxing Authority         Rate/$100                                           AREA INFORMATION
                                     Harris County             0.61809
                                     Spring Branch ISD         1.38250
                                     Port of Houston Authy     0.01773
                                     Spring Branch MGT DIST    0.10000
                                     City of Houston           0.63875

                                     2008 Rate / $100 of Value      $2.7571
                                     2009 Prelim. Tax Assmt      $3,159,908
                                     2008 Approx. Total Tax         $87,121
                          CONSTRUCTION                                        Windcrest on Westview is conveniently located just off the corner of Westview Dr.
Hot Water:             Boilers    Cert.of Occ:               ?                and Cedar Post Lane just a few blocks west of Blalock Rd. in the desirable Spring
Elec Meter:          Individual   Materials:      Brick, Wood and Stucco
                                                            2
                                                                              Branch area of northwest Houston. The area has excellent cross town access via
A/C:                 Individual   # of Stories:
Water Meter:          Master      Parking:      257 Spaces, Some Covered      Beltway 8 and Interstate 10 all of which are within a mile of the property allowing
Access Gates:           Yes       # Buildings:              25                good access to every important business center in the Houston area, including an
Roof:                   Flat      Units/Acre:             34.38               approximate 11.5 mile commute to Downtown Houston. The property is just a
                  AERIAL ~ Windcrest on Westview                              few miles from two of the most premier business districts in Houston, Galleria
                                             Windcrest on Westview            Uptown and the Westchase District. Also located within a short commute are the
                                                                              bedroom communities of northwest Houston such as the Villages of the Memorial
                                                                              area, the city of Katy, Brookshire, and Rosenberg. The property's tenants have
                                                                              convenient access to major retail centers such as the upscale Town and Country
                                                                              Mall and Memorial City Mall.


                                                                              The Memorial District ~ just a few miles south of the property, it is a wealthy district and
                                                                              shares the same school district with the property. The northeast area near I-10 and
                                                                              Beltway 8 is home to Memorial City Mall (over 1.7 M Sq Ft of Retail Space) and the
                                                                              newer, more upscale Town & Country Village lifestyle center, plus the emerging edge city
                                                                              around them.
                                                                              The Westchase District ~approximately 8 miles south of the property, covers 4.2 square
                                                                              miles (2,700 acres) and is one of Houston's premier business addresses. The District
                                                                              employs more than 56,000 people. This area is home to 14.4 million square feet of office
                                                                              space and is becoming one of the fastest growing business centers in Houston, housing
                                                                              over 83 major tenants.
                                                                              The Galleria Uptown ~just 8 miles southeast of the property and houses more than 23.6
                                                                              million square feet of commercial office space which represents approximately 12
                                                                              percent of Houston’s total office space, making it second in size to Downtown Houston.
                                                                              It is home to approximately 2,000 companies, ranging from small to large - sized
                                                                              commercial businesses, representing a variety of diverse industries.
                                                                                                2008 DEMOGRAPHICS - Geography - 3 Mile Radius

                                                                                   Estimated Population 2008                         2008 Housing Units
                                                                                                                                   Total Housing Units: 52,116
                                                                                     3 Mile Radius - 137,790
                                                                                                                                        Occupied: 46,696
                                                                                     5 Mile Radius - 362,430             Total Housing Units:
                                                                                                                                    Owner Occupied: 26,892 37802
                                                                                                     White, 74.5%
                                                                                                                         Occupied: Renter Occupied: 19,80431,564
                                                                                                                                       Vacant
                                                                                                                         Owner Occupied: Units: 5,420 10,433
                                                                                                                         Renter Occupied:             21,131
                                                                                                                         Vacant Units:                62,373
                                                                               Black, 4.4%                                Estimated Average Income 3 Mile Radius
                                                                                                    %'s Based on 2007           Avg. Income Subject: $94,158
                                                                                Asian, 6.0%          Est. Population            Avg. Income Houston: 63,112
                                                                                                      within a 3 mile
                                                                                                           radius         2008 Est. Hispanic Ethnicity-3 Mile Radius
                                                                                                                             Of Hispanic
                                                                               Other, 12.7%                                   Ethnicity                  Not Hispanic
                                                                                                                                 48%           48%           52%
                                                                                 Multi-Race, 2.3%                                                 52%
912 S. Capital of Texas Hwy.                                                                                                                                                                                                                        Main Office ~ 6363 Woodway
Suite 230                                                                                                                                                                                                                                                              Suite 370
Austin, TX 78746                                                                                                                                                                                                                                             Houston, TX 77057
Telephone: 512-610-8000                                                                                                                                                                                                                               Telephone: 713-783-6262
Fax: 512-610-8001                                                                                                                                                                                                                                             Fax: 713-783-6767

                                                                                                              www.houstonincomeproperties.com
                                                                                                                      Broker's License #0393404

BROKER: Bishale Patel                                                                                                                                                                               Email Address: bpatel@houstonincomeproperties.com
Windcrest on Westview
9595 Westview Drive
Houston, TX 77055
                                                                                                                                                              Estimated New Loan
        PHYSICAL INFORMATION                                                   FINANCIAL INFORMATION                                                                                                                              OPERATING INFORMATION
                                                                                                                                                                  Parameters
Number of Units                                     154              Asking Price                      $3,550,000                            Lender                               Bank Loan                              Current Mkt Rent {Oct-08}              $96,410
Avg Unit Size                                       890              Est. Total Assumable Debt                   $0                          Interest Rate                           7.00%                               Current Collec. {Avg Apr-Jun 09}       $76,715
Net Rentable Area                               137,105              Price Per Unit Price                   $23,052                          Est. New Loan Amount              $2,314,800                                Current Occ. {Jul-30-09}                   94%
Land Area (Acres)                                  4.48              Price Per SF                            $25.89                          Est Mtly P & I Payment                $17,947                               Est. Ins per Unit per Yr                   $350
Units per Acre                                     34.4              Est. Rehab/Upgrade/Unit                 $2,000                          Amortizing {YRS}                            20                              Pro Forma Rents Used / Mth.            $99,691
Date Built                                         1974              Est. Total Rehab/Upgrade              $308,000                          Term                                3-5 Years                                           Property Tax Information
e-Met / w-Met                       Individual / Master              Asking Price + Rehab/Upgrade        $3,858,000                          Reserve for Replacement/ U / YR          $250                               2008 Rate / $100 of Value              2.52871
Roof Style                                          Flat                     Estimated Buyer's Equity                                        Estimated Loan Constant                 9.30%                               2009 Prelim. Tax Assmt              $3,159,908
HVAC System                                 Individual               Down Pmt. on Ask Price + Rehab 40% $1,543,200                                         Note is Based on 60%                                          Pro forma Est. assessment used $3,159,908
                                                                                                                                                       of the Asking Price + Rehab
                                                                                                  MODIFIED ACTUALS                                                                               STABILIZED PRO FORMA
                                                                                  Income is Actual Apr 09-Jun 09 Annualized*                                                                          INCOME IS PRO FORMA
                                                                                              Expenses are Jul 08-Jun 2009                                                                        EXPENSES ARE PRO FORMA
                                                                                                  Except where noted                                                                                 Except where noted
INCOME
                        Current Market Rent with a {3% } Rent Increase                                                                                                                                                                       $1,196,292       $99,691 / Mo
                         Loss to Lease {1.0%} of Total Street Rent-Estimated                                                                                                                                                                    (11,963)      1.0%
                        Estimated Gross Potential Income                                                                                                                                                                                     $1,184,329       99.0%
                         Vacancy Estimated at {10.0%}                                                                                                                                                                                          (119,629)      10.0%
                         Credit/Concess/Admin/Other Rental Losses Estimated at {1.0%}                                                                                                                                                           (11,963)      1.0%
                        Total Rental Income {Estimated}                                                                                                                                                                                      $1,052,737       88.0%
                         Other Income                                                                                                                                                                                                            38,500       $250 / Unit / Yr
                        Total Income                                               $920,574                                                                 $76,715 / Mo                                                                     $1,091,237       $90,936 / Mo
EXPENSE                                                                                          Modified Actuals                                                                                      Estimated
     Fixed Expenses                                                                            Fixed Expenses                                                                                 Fixed Expenses
      Taxes                                                                               $79,905 $519 per Unit                         2009 Assmt. and 2008 Rate                       $79,905 $519 per Unit                            Pro forma Assmt. and 2008 Rate
      Taxes Other                                                                          $162    $1 per Unit                          Per P & L Stmt                                   $162    $1 per Unit
      Insurance                                                                           $33,785 $219 per Unit                         Per P & L Stmt                                  $53,900 $350 per Unit                            Estimated
     Total Fixed Expense                                                                                                                  113,852 $739 / Unit                                                                               133,967 $870 / Unit

     Utilities                                                                                           Utilities                                                                               Estimated Utilities
      Electric                                                                            $35,718         $232 per Unit                                                                 $35,718        $232 per Unit
      Rubbish Removal                                                                     $16,708         $108 per Unit                                                                 $17,000        $110 per Unit
      Gas                                                                                 $65,250         $424 per Unit                                                                 $65,250        $424 per Unit
      Telephone                                                                            $3,378         $22 per Unit                                                                   $3,300        $21 per Unit
      Water                                                                               $77,002         $500 per Unit                                                                 $77,002        $500 per Unit
     Total Utilities                                                                                                                        198,056 $1,286 / Unit                                                                             198,270 $1,287 / Unit

  Other Expenses                                                                              Other Expenses                                                                             Estimated Other Expenses
    General & Admin                                                                      $22,342 $145 per Unit                                                                          $23,100 $150 per Unit
    Leasing/Marketing                                                                    $44,423 $288 per Unit                                                                          $23,100 $150 per Unit
    Repairs/Maint. and Supplies                                                          $126,969 $824 per Unit                                                                         $69,300 $450 per Unit
    Labor Costs {Salaries + Burden}                                                      $103,929 $675 per Unit                                                                         $130,900 $850 per Unit
    Monthly Serv. {Patrol,Lawn,Pest}                                                     $42,646 $277 per Unit                                                                          $38,500 $250 per Unit
    Licenses and Fees                                                                      $660   $4 per Unit                                                                             $660   $4 per Unit
    Management Fees                                                                      $47,897 5.2% $311 per Unit based on above income                                               $43,649 4.00% $283 per Unit                      Calculated at 4% of Ttl. Income
  Total Other Expense                                                                                                                       388,868         $2,525 / Unit                                                                     329,209         $2,138 / Unit
               Operating Expense                                                                                                            700,776         $4,550 / Unit                                                                     661,447         $4,295 / Unit
               Reserve for Replacement {Estimated}                                                                                           38,500         $250 / Unit                                                                        38,500         $250 / Unit
            Total Est. Operating Expenses                                                                                                   739,276         $4,800 / Unit                                                                     699,947         $4,545 / Unit
Net Operating Income                                                                                                                        181,298         $1,177 / Unit                                                                      391,290        $2,541 / Unit

Total Price                                                                                                                                $3,550,000 Without Upgrades                                                                         3,858,000 Includes Upgrades
Cap Rate                                                                                                                                         5.11%                                                                                            10.14%
            Debt                                                                                                                             2,130,000 {60% } of the Asking Price                                                              2,314,800 {60% } of the All InCost
            Equity                                                                                                                           1,420,000 {40% } of the Asking Price                                                              1,543,200 {40% } of the All InCost
            Debt Service                                                                                                                       198,166                                                                                           215,359
            Cash Flow                                                                                                                          (16,868)                                                                                          175,931
Cash on Cash                                                                                                                                    -1.19%                                                                                            11.40%
NOTES ON MODIFIED ACTUALS: Income is Jan 09-Jun 09 Annualized. Taxes are at 2008 rate and 20089assessment. Expenses are Jul 08-Jun 09 except where noted. The management fee of 5.2% is based
on the % of the fee on the operating stmt. *Bad Debt has been deducted from the income and removed as an expense (see operating stmt).
NOTES ON PRO FORMA: Income is Pro Forma as noted. Taxes are estimated at 2008 rate and 2009 assessment. Other income is estimated, Loan is Estimated at 60% of the "All In" cost at an interest rate of
7%.

Disclaimer: The information contained herein has either been given to us by the owner of the property or obtained from sources that we deem reliable. We have no reason to doubt its accuracy but we do not guarantee it. Vacancy factors used herein are an arbitrary percentage used only
as an example. It does not necessarily relate to actual vacancy, if any. The value of the investment is dependent upon these estimates and assumptions made above, as well as the investment income, the tax bracket and other factors which your tax advisor and/or legal counsel should
evaluate. THE PROSPECTIVE BUYER SHOULD CAREFULLY VERIFY EACH ITEM OF INCOME, EXPENSE, AND ALL OTHER INFORMATION CONTAINED HEREIN, and should also perform a detailed inspection of the property. We have not determined whether the property
complies with city ordinances and recommend that you determine whether or not the property complies with deed restrictions and the City of Houston life safety ordinance, whether or not a certificate has been issued, and whether or not the property contains asbestos, lead paint and/or
912 S. Capital of Texas Hwy.                                                                                                                                                            Main Office ~ 6363 Woodway
Suite 230                                                                                                                                                                                                  Suite 370
Austin, TX 78746                                                                                                                                                                                 Houston, TX 77057
Telephone: 512-610-8000                                                                                                                                                                   Telephone: 713-783-6262
Fax: 512-610-8001                                                                                                                                                                                 Fax: 713-783-6767
                                                                                    www.houstonincomeproperties.com
                                                                                             Broker's License #0393404
BROKER: Bishale Patel                                                                                                                        Email Address: bpatel@houstonincomeproperties.com

                   Windcrest on Westview                                                                                                   Sales Comparables
9595 Westview Drive
Houston, TX 77055
Key Map:       450X
                                           Springtowne
                                              ●
                                                  Located 1.8 miles northwest of the Subject
                                              ● Sold Date:                                8/20/09

                                              ● Sales Price:                            $6,062,500

                                              ● Price Per Unit:                           $27,065

                                              ● Price Per SF:                             $30.55

                                      Spring Brook Village
                                              ● Located 2.5 miles northeast of the Subject

                                              ● Sold Date:                            Current Listing

                                              ● Sales Price:                            $2,250,000

                                              ● Price Per Unit:                           $21,635

                                              ● Price Per SF:                             $29.47

                                            Witte Oaks
                                              ● Located 1.7 miles northwest of the Subject

                                              ● Sold Date:                                4/15/09

                                              ● Sales Price:                            $3,250,000

                                              ● Price Per Unit:                           $26,210

                                              ● Price Per SF:                             $29.74

                                          Cedar Branch
                                              ● Located 0.7 miles east of the Subject

                                              ● Sold Date:                                4/17/09

                                              ● Sales Price:                            $4,625,000

                                              ● Price Per Unit:                           $19,597

                                              ● Price Per SF:                             $23.52

                                       Green Oaks Village
                                              ● Located 2.4 miles north of the Subject

                                              ● Sold Date:                                 1/1/08
                                                                                                                                   Apartment Sales Comparables (sorted by $/per/sf)
                                              ● Sales Price:                            $8,200,000        Property Name                   Sold       Total SF Avg/SF          Price          Pr./U      Pr./SF      Blt.    #/U
                                                                                                                Springtowne
                                                                                                                                       08/20/09 198,432 886 $6,062,500 $27,065 $30.55 1969 224
                                              ● Price Per Unit:                           $21,579         1776 Gessner
                                                                                                            Spring Brook Village        Current
                                                                                                                                                     76,336       734 $2,250,000 $21,635 $29.47 1972 104
                                              ● Price Per SF:                             $25.26          3402 Blalock                  Listing
                                                                                                                 Witte Oaks
                                                                                                                                       04/15/09 109,290 881 $3,250,000 $26,210 $29.74 1964 124
                                    Windcrest on Westview                                                 1655 Witte Rd
                                                                                                                Cedar Branch
                                                                                                                                       04/17/09 196,664 833 $4,625,000 $19,597 $23.52 1974 236
                                                                                                          1217 Blalock
                                                                                                             Green Oaks Village
                                                                                                                                       01/01/08 324,672 854 $8,200,000 $21,579 $25.26 1973 380
                                                                                                          3400 Campbell


                                                                                                          Average Comps Only                        181,079 838 $4,877,500 $23,217 $27.71 1970 214

                                                                                                             Windcrest on Westview                  137,105 890 $3,550,000 $23,052 $25.89 1974 154
Disclaimer: The information contained herein has either been given to us by the owner of the property or obtained from sources that we deem reliable. We have no reason to doubt its accuracy but we do not guarantee it.
Vacancy factors used herein are an arbitrary percentage used only as an example. It does not necessarily relate to actual vacancy, if any. The value of the investment is dependent upon these estimates and assumptions made
above, as well as the investment income, the tax bracket and other factors which your tax advisor and/or legal counsel should evaluate. THE PROSPECTIVE BUYER SHOULD CAREFULLY VERIFY EACH ITEM OF INCOME,
EXPENSE, AND ALL OTHER INFORMATION CONTAINED HEREIN, and should also perform a detailed inspection of the property. We have not determined whether the property complies with city ordinances and recommend
that you determine whether or not the property complies with deed restrictions and the City of Houston life safety ordinance, whether or not a certificate has been issued, and whether or not the property contains asbestos, lead
paint and/or mold and whether or not the property lies within a flood plain .
912 S. Capital of Texas Hwy.                                                                                                    Main Office ~ 6363 Woodway
Suite 230                                                                                                                                          Suite 370
Austin, TX 78746                                                                                                                         Houston, TX 77057
Telephone: 512-610-8000                                                                                                           Telephone: 713-783-6262
Fax: 512-610-8001                                                                                                                         Fax: 713-783-6767
                                                    www.houstonincomeproperties.com
                                                         Broker's License #0393404
BROKER: Bishale Patel                                                                             Email Address: bpatel@houstonincomeproperties.com

            Windcrest on Westview

                                                              Floor Plans

                                                                                                                       BEDROOM          BEDROOM
                         BEDROOM                              BEDROOM         BEDROOM




                                                                                     CLOSET
                                                                                                                                         CLOSET
                                  Kitchen




                                                                                       KITCHEN




                                                                                                                                                KITCHEN
                         LIVING


                                                                LIVING                                                 LIVING
                                                                                DINING
                                                                                                                                           DINING
                One Bedroom
                  One Bath
               675 Square Feet

                                                                     1 Bedroom                                                  2 Bedroom
                                                                        1 Bath                                                     2 Bath
                                                                   940 Square Feet                                            945 Square Feet




                                                                               BEDROOM
                                                                                                       BEDROOM

                      Kitchen     Dining    Bath    BEDROOM
                                                                                                                    BEDROOM

                                                                                                                                K
                                                                                                                                I
                                                                                                                                T
                                                                                                                                C
                        LIVING                                                                                                  H
                                                                                                                                E
                                                                                                                                N
                                            BEDROOM                             LIVING

                                                                                                        DINING      KITCHEN




                                   Two Bedroom                                                      3 Bedroom
                                     One Bath                                                         2 Bath
                                  900 Square Feet                                                1200 Square Feet




Disclaimer: The information contained herein has either been given to us by the owner of the property or obtained from sources
that we deem reliable. We have no reason to doubt its accuracy but we do not guarantee it. Vacancy factors used herein are an
arbitrary percentage used only as an example. It does not necessarily relate to actual vacancy, if any. The value of the investment
is dependent upon these estimates and assumptions made above, as well as the investment income, the tax bracket and other
factors which your tax advisor and/or legal counsel should evaluate. THE PROSPECTIVE BUYER SHOULD CAREFULLY
VERIFY EACH ITEM OF INCOME, EXPENSE, AND ALL OTHER INFORMATION CONTAINED HEREIN, and should also
perform a detailed inspection of the property. We have not determined whether the property complies with city ordinances and
recommend that you determine whether or not the property complies with deed restrictions and the City of Houston life safety
ordinance, whether or not a certificate has been issued, and whether or not the property contains asbestos, lead paint and/or
mold and whether or not the property lies within a flood plain .
912 S. Capital of Texas Hwy.                                                                                Main Office ~ 6363 Woodway
Suite 230                                                                                                                      Suite 370
Austin, TX 78746                                                                                                     Houston, TX 77057
Telephone: 512-610-8000                                                                                       Telephone: 713-783-6262
Fax: 512-610-8001                                                                                                     Fax: 713-783-6767
                                                www.houstonincomeproperties.com
                                                     Broker's License #0393404
BROKER: Bishale Patel                                                              Email Address: bpatel@houstonincomeproperties.com

            Windcrest on Westview

                                                           Site Plan




Disclaimer: The information contained herein has either been given to us by the owner of the property or obtained from sources that
we deem reliable. We have no reason to doubt its accuracy but we do not guarantee it. Vacancy factors used herein are an arbitrary
percentage used only as an example. It does not necessarily relate to actual vacancy, if any. The value of the investment is
dependent upon these estimates and assumptions made above, as well as the investment income, the tax bracket and other factors
which your tax advisor and/or legal counsel should evaluate. THE PROSPECTIVE BUYER SHOULD CAREFULLY VERIFY EACH
ITEM OF INCOME, EXPENSE, AND ALL OTHER INFORMATION CONTAINED HEREIN, and should also perform a detailed
inspection of the property. We have not determined whether the property complies with city ordinances and recommend that you
determine whether or not the property complies with deed restrictions and the City of Houston life safety ordinance, whether or not a
certificate has been issued, and whether or not the property contains asbestos, lead paint and/or mold and whether or not the
property lies within a flood plain .
912 S. Capital of Texas Hwy.                                                                                                                                                Main Office ~ 6363 Woodway
Suite 230                                                                                                                                                                                      Suite 370
Austin, TX 78746                                                                                                                                                                     Houston, TX 77057
Telephone: 512-610-8000                                                                                                                                                       Telephone: 713-783-6262
Fax: 512-610-8001                                                                                                                                                                     Fax: 713-783-6767
                                                                             www.houstonincomeproperties.com
                                                                                     Broker's License #0393404
BROKER: Bishale Patel                                                                                                               Email Address: bpatel@houstonincomeproperties.com

                    Windcrest on Westview




Disclaimer: The information contained herein has either been given to us by the owner of the property or obtained from sources that we deem reliable. We have no reason to doubt its accuracy but we do not guarantee
it. Vacancy factors used herein are an arbitrary percentage used only as an example. It does not necessarily relate to actual vacancy, if any. The value of the investment is dependent upon these estimates and
assumptions made above, as well as the investment income, the tax bracket and other factors which your tax advisor and/or legal counsel should evaluate. THE PROSPECTIVE BUYER SHOULD CAREFULLY VERIFY
EACH ITEM OF INCOME, EXPENSE, AND ALL OTHER INFORMATION CONTAINED HEREIN, and should also perform a detailed inspection of the property. We have not determined whether the property complies
with city ordinances and recommend that you determine whether or not the property complies with deed restrictions and the City of Houston life safety ordinance, whether or not a certificate has been issued, and
whether or not the property contains asbestos, lead paint and/or mold and whether or not the property lies within a flood plain .
                                  Approved by the Texas Real Estate Commission for Voluntary Use

                              Texas law requires all real estate licensees to give the following information
                             about brokerage services to prospective buyers, tenants, sellers and landlords.


                 Information About Brokerage Services

 B       efore working with a real estate broker, you should
         know that the duties of a broker depend on whom
         the broker represents. If you are a prospective
         seller or landlord (owner) or a prospective buyer or
 tenant (buyer), you should know that the broker who lists
                                                                                      Act. The broker must obtain the written consent of each
                                                                                      party to the transaction to act as an intermediary. The
                                                                                      written consent must state who will pay the broker and, in
                                                                                      conspicuous bold or underlined print, set forth the broker’s
                                                                                      obligations as an intermediary. The broker is required to
 the property for sale or lease is the owner’s agent. A                               treat each party honestly and fairly and to comply with
 broker who acts as a subagent represents the owner in                                The Texas Real Estate License Act. A broker who acts
 cooperation with the listing broker. A broker who acts as                            as an intermediary in a transaction:
 a buyer’s agent represents the buyer. A broker may act as                                 (1) shall treat all parties honestly;
 an intermediary between the parties if the parties                                        (2) may not disclose that the owner will accept a
 consent in writing. A broker can assist you in locating a                                 price less than the asking price unless authorized in
 property, preparing a contract or lease, or obtaining                                     writing to do so by the owner;
 financing without representing you. A broker is obligated                                 (3) may not disclose that the buyer will pay a price
 by law to treat you honestly.                                                             greater than the price submitted in a written offer
                                                                                           unless authorized in writing to do so by the buyer; and
 IF THE BROKER REPRESENTS THE OWNER:                                                       (4) may not disclose any confidential information or
 The broker becomes the owner’s agent by entering into an                                  any information that a party specifically instructs the
 agreement with the owner, usually through a written -                                     broker in writing not to disclose unless authorized in
 listing agreement, or by agreeing to act as a subagent by                                 writing to disclose the information or required to do so
 accepting an offer of subagency from the listing broker. A                                by The Texas Real Estate License Act or a court
 subagent may work in a different real estate office. A                                    order or if the information materially relates to the
 listing broker or subagent can assist the buyer but does                                  condition of the property.
 not represent the buyer and must place the interests of                              With the parties’ consent, a broker acting as an
 the owner first. The buyer should not tell the owner’s                               intermediary between the parties may appoint a person who
 agent anything the buyer would not want the owner to                                 is licensed under The Texas Real Estate License Act
 know because an owner’s agent must disclose to the                                   and associated with the broker to communicate with and
 owner any material information known to the agent.                                   carry out instructions of one party and another person who
                                                                                      is licensed under that Act and associated with the broker
 IF THE BROKER REPRESENTS THE BUYER:                                                  to communicate with and carry out instructions of the
 The broker becomes the buyer’s agent by entering into an                             other party.
 agreement to represent the buyer, usually through a
 written buyer representation agreement. A buyer’s agent                              If you choose to have a broker represent you,
 can assist the owner but does not represent the owner                                you should enter into a written agreement with the broker
 and must place the interests of the buyer first. The owner                           that clearly establishes the broker’s obligations and your
 should not tell a buyer’s agent anything the owner would                             obligations. The agreement should state how and by
 not want the buyer to know because a buyer’s agent must                              whom the broker will be paid. You have the right to
 disclose to the buyer any material information known to the                          choose the type of representation, if any, you wish to
 agent.                                                                               receive. Your payment of a fee to a broker does not
                                                                                      necessarily establish that the broker represents you. If you
 IF THE BROKER ACTS AS AN INTERMEDIARY:                                               have any questions regarding the duties and
 A broker may act as an intermediary between the parties                              responsibilities of the broker, you should resolve those
 if the broker complies with The Texas Real Estate License                            questions before proceeding.



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




Buyer, Seller, Landlord or Tenant                                                                                                  Date


             Texas Real Estate Brokers and Salespersons are licensed and regulated by the Texas Real Estate Commission (TREC). If you have a question   EQUAL HOUSING
                                                                                                                                                        OP P O RT U N I T Y
             or complaint regarding a real estate licensee, you should contact TREC at P.O. Box 12188, Austin, Texas 78711-2188 or 512-465-3960.



                                                                                                                                   01A              TREC No. OP-K

				
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