esperanza - ket ent · 2 31 4 5 3 2 5 4 esperanza at birnam wood . sub-market. spring/woodlands....

Esperanza KET Enterprises Incorporated I 4295 San Felipe, Suite 355 I Houston, TX 77027 I www.ketent.com

at Birnam Woods

Esperanza at Birnam Woods ● 23003 Birnam Wood Blvd. ● Spring, TX 77373

Units: 36Avg Size: 848Date Built: 2018Rentable Sq. Ft.: 30,528Acreage: 3.19Occ (Lease-up): 83%Class: A-

► Brand New, A- Construction

► High End Finishes

► New Construction - Finished in 2018

► Generation Park, a 4,000 Acre Master Planned

►

► Very Close Proximity to Hwy 99, I-45 and the Hardy Toll

Road

►

► There is a Surge of New Home Construction in the Area

From $200,000 to $500,000

FOR MORE INFORMATION PLEASE CONTACT:

INVESTMENT HIGHLIGHTS

Convenient to the Exxon/Mobile Campus

Corporate Campus is Convenient

23003 Birnam Wood Blvd, Spring, TX 77373

High Occupancy Area With Strong Rents

MARKET TO DETERMINE PRICE

KET ENTERPRISES INCORPORATED

4205 San Felipe I Suite 355 I Houston, Tx 77027 www.ketent.com

Broker License #0406902

HASHIR SALEEM Broker/Senior Associate

[email protected]

713-355-4646 ext 106

Esperanza at Birnam Woods

10/12/2018 EsperanzaatBirnhamWood


ASKING PRICE Est Mkt Rent (Sep-18)Amortization (months) Estimated CollectionsMo. Debt Service Est Physical Occ (Oct-18)Annual P & I Interest RateDate Due

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

Pitched Mortgage Balance

PRO-FORMA INCOMECurrent Street Rent with a 5% Increase $37,800 / MoEstimated Gross Scheduled Income $37,800 / MoEstimated Loss to Lease (2% of Total Street Rent) 2%Estimated Vacancy (4% of Total Street Rent)Estimated Concessions and Other Rental Losses (2% of Total Street Rent) 2%Estimated Utilities Income (electricity, water/sewer, gas & trash)Estimated Other Income $643 / Unit / YrEstimated Total Rental IncomeESTIMATED TOTAL PRO-FORMA INCOME $37,898 / Mo

Estimated Income 2018

Fixed Expenses

$1,721 per Unit $1,982 per Unit

Gas

Total Utilities $524 per Unit $524 per Unit

Other ExpensesGeneral & Admin & MarketingRepairs & MaintenanceLabor CostsContract ServicesManagement Fees 2.35% $254 per Unit 3.00% $442 per UnitTotal Other Expense $1,681 per Unit $1,869 per Unit

Total Operating Expense $3,925 per Unit $4,374 per Unit

Reserve for Replacement $200 per Unit $200 per Unit

Total Expense $4,125 per Unit $4,574 per Unit

Stabilized Net Operating Income

Asking Price

Physical Information Financial Information Proposed Loan Information Operating Information

Avg Unit Size 848 $32,400Number of Units 36 MARKET $36,000New loan at 75%

83%Land Area (Acres) 3.19 Est Ins per Unit per YrNet Rentable Area 30,528

$472Units per Acre 11.296 Property Tax InformationDate Built 2018 2017 Tax Rate/$100 3.19808

4.80%10 Yrs

Elec Meter Indiv Yes Est 2018 Taxes $40,193$300 2018 Prelim Tax Assessment $1,256,782

INCOME

453,600453,600

HVAC System HVAC-Indiv Est Future Taxes $54,367Roof Style Est FutureTax Assessment $1,700,000

* per unit -; per ft -

Agency

(9,072)(18,144) 4%

MODIFIED ACTUALS PRO-FORMA

454,774

(13,608)18,850 $524 / Unit / Yr23,148

$388,800

EXPENSE Sept '17 thru Aug '18 Expenses Stabilized Future Expenses

Fixed Expenses Estimated Fixed Expenses

454,774

Total Fixed Expense 61,948 71,351

Utilities Utilities Estimated Utilities

Insurance $16,984 $472 per Unit $16,984 $472 per UnitTaxes $44,964 $1,249 per Unit $54,367 $1,510 per Unit

Future taxes are estimated and based on "Sister Property" Esperanza at Wilson Road

taxes are estimated and based on "Sister Property" Esperanza at Wilson Rd.

Electricity $6,165 $171 per Unit $6,165 $171 per Unit

$12,684 $352 per Unit $12,684 $352 per UnitWater & Sewer$ per Unit $ per Unit

18,850 18,850

Other Expenses Estimated Other Expenses$8,373 $233 per Unit $8,373 $233 per Unit

$8,756 $243 per Unit $8,756 $243 per Unit$9,149 $15,917

$8,516 $237 per Unit $8,516 $237 per Unit$25,718 $714 per Unit $25,718 $714 per Unit

148,509 164,680240,291 290,094

MARKET MARKET

60,512 67,280

141,309 157,4807,200 7,200

NOTES: ACTUALS: Expenses are Sept '17 thru Aug '18 Expenses pro-rated from Experanza at Wilson Road's 8/18 trailing 12 operating statement. Income is estimated. PRO FORMA: Income is Pro Forma as Noted. Taxes were calculated using . Insurance is estimated. Management Fees calculated as 3.% of Gross Income, Other expenses are Estimated for the Pro Forma.

DISCLAIMER: The information contained herein has been obtained from sources that we deem reliable. We have no reason to doubt the accuracy of the information, but we have not verified it and make no guaranty, warranty or representation about it. It is your resonsibility to independentlyconfirm its accuracy and completeness. We have not determined whether the property complies with deed restrictions or any city licensing or ordinances including life safety compliance or if the property lies within a flood plain. THE PROSPECTIVE BUYER SHOULD CAREFULLY VERIFY EACHITEM OF INCOME OR EXPENSE AND PERFORM OR HAVE PERFORMED ANY INSPECTIONS TO VERIFY POSSIBLE CONTAMINATION BY ASBESTOS, LEAD PAINT, MOLD OR ANY OTHER HAZARDOUS SUBSTANCES. The owner reserves the right to withdraw this listing or change theprice at anytime without notice during the marketing period.

Esperanza at Birnam Woods ● 23003 Birnam Wood Blvd. ● Spring, TX 77373 Property Overview

Age: 2018 Mortgage Balance Renovated: N/A Lender Spring ISD $1.510000Elec Meter: Indiv Amortization Harris County $0.418010A/C Type: HVAC P & I Harris County Flood Control $0.028310Water: RUBS Type Port of Houston Authority $0.012560Wiring: Copper Assumable Harris County Hospital District $0.171100Roof: Pitched Monthly Escrow Harris County Education Dept $0.005195Paving: Concrete Origination Date Lone Star College System $0.107800Materials: Hardi Plank Due Date HC Emerg Srv Dist 7 & 11 $0.135100# of Stories: 2 Interest Rate HC WCID 136 $0.810000Buildings: 9 Yield Maintenance 2017 Tax Rate/$100 $3.198075Parking: Surface Transfer Fee 2018 Prelim Tax Assessment $1,256,782Units/Acre: 11.30HCAD NRA Sq. Ft. 30,780

Estimated Collections 32,400$

Jan 2018Feb 2018Mar 2018Apr 2018May 2018 250$ Jun 2018 1,748$ Jul 2018 5,064$ Aug 2018 8,412$ Sep 2018 16,080$ Oct 2018Nov 2018Dec 2018

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

PROPERTY HIGHLIGHTS

ESTIMATED COLLECTIONS

TAXING AUTHORITY

Property ID: 1035150000021

CURRENT MORTGAGEPROPERTY INFORMATION Harris County

Disclaimer: The information contained in this Memorandum reflects material from sources deemed to be reliable, including data such as operating statements, rent roll, etc. provided by the Owner. Notwithstanding, KET Enterprises Incorporated does not make any warranties about the information contained in this marketing package. Every prospective purchaser should verify the information and rely on his accountants or attorneys for legal and tax advice. This offer is “As-Is, Where-Is”. Answers to specific inquiries will have to be supplied by the Owner and are available upon request. Rates of return vary daily. No representations are made concerning environmental issues, if any.

Esperanza at Birnam Wood Boulevard is brand new, beautiful construction of 9 fourplex apartment buildings on approximately 3.19 acres in Spring, Texas. All 2 bedrooms, 2 baths with wood laminate flooring, granite counter tops and all appliances, including washer/dryer in each unit, ceilings fans, and USB outlets. Ground floor units have all wood laminate flooring and upstairs units have carpet. There are storage units available on the property. Certificates of Occupancy issued in July 2018. Great area! Idea for a long term hold!

$(20,000) $(15,000) $(10,000) $(5,000)

$- $5,000

$10,000 $15,000 $20,000 $25,000 $30,000

Jan 2

018

Feb 2

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Mar 2

018

Apr 2

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May 2

018

Jun 2

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Esperanza at Birnam Woods ● 23003 Birnam Wood Blvd. ● Spring, TX 77373 Unit Mix

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

Flat - Up 2 Bed/2 Bath 18 848 15,264 $975 $17,550 $1.15Flat - Down 2 Bed/2 Bath 18 848 15,264 $1,025 $18,450 $1.21

36 848 30,528 $1,000 $36,000 $1.18

Source: Owners 9/24/18 Rent Roll

All Upstairs Units Have Carpet

Granite Counter Tops

Ceiling Fans

USB Outlets

9 Buildings With 4 Units Each

Beautiful 2 Bedroom /2 Bath Fourplexes

Full Appliance Package

Stacked Washer/Dryer in Every Unit

Ground Floor Units Have All Wood Laminate Flooring

UNIT MIX SEPT 2018

Total Units Average Sq. Ft.

Total Sq. Feet

Average Rent/Unit

Total Rent

Average Rent/ SFTOTALS AND AVERAGES

Security Cameras for the Entire Property

Key Code Entrance to Complex

LED Lighting

Assigned Parking is Available

Easy Access to I-45

18

10 7

5

7

5

2 Bed/2 Bath 2 Bed/2 Bath 2 Bed/2 Bath

2 Bed/2 Bath 2 Bed/2 Bath 2 Bed/2 Bath

Esperanza at Birnam Woods ● 23003 Birnam Wood Blvd. ● Spring, TX 77373 Rent Comparables

1

2

3

4

5

Totals/Averages Comps 2016 +EW 90% 231 853 $1,115 $1.31+E = Resident Pays ElecEsperanza at Birnam Wood23003 Birnam Wood Blvd.

93% 8,778 897 $889 $0.991Houston Market Averages 90% 646,059 882 $1,030 $1.168

Rent Comparables Sept 2018 - Apartment Data Services

Year Built Occ #Units P/SFAvg Rent

2015 90% 330 824 $1,018

1.220$1,025

1.235+EW

2016

+EWG

+EW 93% 96 799

Property Name

Esperanza at Wilson Road 1404 Wlson Rd.

+W = Resident Pays Water +G = Resident Pay Gas

98% 227 881 $1,189

Leaseup 149

+EW

The Pierpont 23770 Springwoods Village Pkwy 2017

2018 83% 36 848 $1,000 $1.18+EW

Pines at Woodcreek 21021 Aldine Westfield

Avg SF

Sub Market Averages

1.350

1.282+EW

+EW 78% 353 901 $1,303 1.446

861 $1,104

Willowbend 9393 FM 1960 Bypass W Rd. 2016

Haven at Louetta 20330 Whitewood Dr. 2017

5

5 1 2 3

2

1

4

3

4

Esperanza at Birnam Wood

Esperanza at Birnam Woods ● 23003 Birnam Wood Blvd. ● Spring, TX 77373 Sales Comparables

1

2

3

4

5

Totals/Averages Comps $29,753,600 241,639 $114,744 $124.60 2015 259Esperanza at Birnam Wood23003 Birnam Wood Blvd.

Built

$28,400,000

Advenir at Grand Parkway 5555 Long Prairie Parkway 08/01/16 $40,320,000 347,424 $120,000 $116.05 2013

245,453 $115.70

Property Name Date Sold Price Total Sq. Ft. Price/SFPrice/Unit

MARKET 30,528 36

Oaks of Northpointe 12101 Northpointe 07/01/16 2014$115,447 246

336

Haven at Liberty 14580 Crosby Fwy Asking $26,261,998

11/01/16 $27,120,000

214,279 $106,756 $122.56

Aria at Rollingbrook 1700 Rollinbrook

Haven at Westgreen 510 Westgreen 01/10/16 $26,666,000

2017 246

209,789 $113,000 $129.27 2015 240

2018

191,250 $118,516 $139.43 2016 225

Units

1

2 4 3 5 1

3

2

5 4


Sub-Market SPRING/WOODLANDS

The environment and green space has always been a priority in The Spring/ Woodlands. An emphasis on preserving the beauty of the natural environment, and setting aside large amounts of land for parks has played a key role in shaping the growth of area. This is evident in the 160 miles of hike and bike trails reaching across all Villages. Community leaders have taken the initiative to educate residents by providing "green" tips and resources for healthy sustainable living through various programs offered by the Environmental Services Department. This prime location makes the area ideal for companies conducting business locally and around the globe. Many of Houston's largest companies call this area home. The area's strengths include: ► Easy commutes to locations throughout Houston via:

Interstate 45 Sam Houston Tollroad Hardy Toll Road U.S. Hwy 59 Grand Parkway

► Exceptional IT infrastructure ► Close proximity to a diverse workforce ► Strong presence of global companies ► Incentive for developers

STRONG EMPLOYMENT BASE Farouk Systems US headquarters (1) encompasses 300,000

square feet and 600 employees. Their recent expansion in Greenspoint includes a 500,000 square foot facility and 1,200 employees, as well as projecting the addition of 4,000 employees in the next few years.

Exxon Mobil North American Headquarters (2) (New

Campus Development) has broken ground on their new three million square foot campus that will create approximately 36,000 jobs during construction and 44,000 permanent jobs after completion. It is projected to bring 15,000 to 17,000 employees to the immediate area. The campus will include 20 buildings totaling three million square feet.

Bush Intercontinental Airport (3) generates a $1.6 billion impact on

the local economy and a regional impact of $24.2 billion. The airport system supports $5 billion in total payroll and 200,000 full time jobs. It's the 8th busiest airport in the nation and is named the fastest growing airport among the top ten major airports in the nation. There is abundant retail near FM1960 and Interstate 45 including Home Depot, Kroger, PetSmart, Hobby Lobby, Mercedes Benz, BMW, Conn's, Barnes and Noble, Walmart and Sam's Club in addition to multiple retail centers, shops restaurants and entertainment.

Greenspoint Business District (4) Greenspoint Business District

covers 12 square miles, hosts Bush Intercontinental Airport, 4,400 business establishments, 20 major companies, and 70,000 employees. Major employers include Exxon Mobil (1,800), UPS (4,300), Baker Hughes (1,600), Halliburton (1,300), and Continental Airlines (700). There are approximately 80 energy related companies, 18 million square feet of retail, office and industrial space.

3 7

1

2

4

5 6

Los Prados

Sub-Market

Kennedy Greens Business Park (5) is located on John F. Kennedy Blvd., south of Beltway 8 and Aldine Bender Rd. (4444 Kennedy Commerce Dr., Houston, TX). It encompasses 186 acres of which 40 acres are devoted to a detention pond. Some important feature is offers are: Over 150 acres available for build-to-suit office and / or warehouse space Excellent access to Beltway 8, Hwy 59, I-45 and Houston Intercontinental Airport Deed restricted park wit professional management Located in Harris County, outside Houston city limits City of Houston utilities, regional detention provided ESFR available 13.30 Acres Available

Pinto Business Park (6) Located in the heart of Houston's North &

Northwest Submarket, Pinto Business Park is positioned as the region's top destination for all your light manufacturing, warehouse, supply chain distribution and the best-fit-solution for all your corporate real estate requirements. For Sale or Build to Suit: Industrial, Distribution, Data Center, Office Excellent access via I-45 & Beltway 8, to the Gulf Coast area Unique logistics-oriented environment Largest shovel ready development in the Great Houston area Approved: Greater Houston Partnership’s Certified Property Program Strategic location reduces transportation costs while increasing supply chain efficiencies Offers multiple fiber carriers with redundant lines 7 miles from IAH & 30 miles from the Port of Houston Located within the City of Houston’s ETJ / MUD 406 Cooperating brokers protected

According to KHOU Houston - There are more than 2,500 full-time positions that

need to be filled at Amazon's new robotics fullfillment center in Houston's

Pinto Park KHOU.com May 31, 2017

Prologis Greens Parkway (7) Prologis operates the world’s largest and most diverse portfolio of industrial real estate. With more than 660 million

square feet of modern facilities and nearly 8,000 acres of land in strategic global and regional markets, Prologis helps customers maximize the efficiency of their

global supply chain for distribution, logistics and light manufacturing. Prologis is the largest owner, operator and developer of industrial real estate in the United States, active in 36 markets. The company owns and operates facilities at strategic ports on both coasts, inland ports, and regional distribution hubs across the country, including rail-served and intermodal facilities. Prologis Greens Parkway is located at 1256 Greens Parkway and is a state-of-the-art industrial project located within the north Houston submarket. It provides Immediate accessibility to Beltway 8 and I-45, with close access to Hardy Toll Road and Highway 59.

Kennedy Greens Business Park

Pinto Business Park

#REF!

Beautifully wooded Humble, Texas is located 20 minutes northeast of Downtown Houston, Texas and less than 5 minutes from Bush Intercontinental Airport. Established as a small dusty logging, cattle and later oil-boom town, Humble has come quite a way as a community in its 130 plus year history. Humble has established itself as a major commercial and retail hub for the northern Houston Metropolitan area. With a population of around 37,879, Humble is located just 5 minutes from Bush Intercontinental Airport and is in the Lake Houston area of Houston. Humble is just 5 minutes from the newest commercial development in Northeast Houston, Generation Park. Generation Park, a 3,924-acre master-planned commercial development in the Lake Houston area, is 15 minutes from the Port of Houston, 5 minutes from Hwy 59 and Hwy 90 and 20 minutes from Downtown Houston and is surrounded by established neighborhoods and 3,200 acres of brand new lakefront communities. Fall Creek, a new residential development that broke ground in 2003, boasting 7,200 residents, with an average household income of $146K and average home price of $397,000 is just minutes to the east of Humble and lies between Humble and Generation Park.

Top Area Employers Bush IAH 35,000 Humble Independent School District 5,500 Insperity 1,900 Kingwood Medical Center 1,300 Memorial Hermann Hospital Northeast 1,150 APAC Customer Service 500 Kroger 500 Panalpina 380 CDI Energy Products 370 Lawler Foods 360 Union Tank Car Co. 300 Weatherford 200 Empire Steel 200 Expeditors International 200 Aspen Manufacturing 188 Jetco Delivery 160 Texas Steel Conversion 125 Forged Components 120 Tenaris Coiled Tubes 120 Faith Manufacturing 115 Orion Engineered Carbons 100 Chevron Phillips Chem Co LP 100 Humble Surgical Hospital 10

• FMC Technologies • Insperity • Tacki-Mac/Avon Grips • Lawler Foods • Pentagon Freight • DeLorean Motor Company • Royal Purple • Q Air, Inc. • Koch Specialty Plant Services, Inc. • Jetco

Company Headquarters

HUMBLE, TEXAS Lake Houston Area of Northeast Houston

Esperanza at Birnam Woods ● 23003 Birnam Wood Blvd. ● Spring, TX 77373 Northeast Houston

▌Northeast Houston Houston is booming, and no region more so than the area surrounding Generation Park. The recent half-billion dollar investment in the completion of Beltway 8/Sam Houston Tollway is evidence of what is to come. North Houston is currently experiencing unprecedented growth, and Generation Park is perfectly situated at the center of it all. With brand new grocery stores, nationally recognized schools, and a variety of attractive residential master-planned communities, there is no question that North Houston is on the rise. Companies with a broad workforce will find that Generation Park is surrounded by attractive neighborhoods well-suited to various lifestyle and budget demands. At Generation Park, executives and employees are just minutes away from affordable homes, as well as multi-million dollar homes in nearby gated communities. - Beltway 8/Sam Houston Tollway is the gateway to all major freeways: HWY 290, I-45, US 59, I-10, the new US 90 and the Hardy Toll Road. - Easy freeway access makes Generation Park convenient for commuters to and from the Medical Center (30 minutes), the Galleria (30 minutes), and Houston's Central Business District (20 minutes). There is not a single stoplight between Generation Park and downtown Houston. - Generation Park is bordered to the west by 2 miles of Union Pacific main line rail. There is currently a plan in place for a 1500-car storage-in-transit yard to serve large-scale rail users. - Travelers have direct access to and from Houston's major airports: 15 minutes to IAH and less than 30 minutes to Hobby Airport - Just 15 minutes to the Port of Houston, ranked first among U.S. ports in both foreign trade imports and total foreign tonnage. .

A Great Area to Live, Work and Play With a balanced network of tranquil neighborhoods, fantastic shopping, green forests and inviting recreational facilities, this area of Houston has it all. - A wide range of affordable and attractive master-planned communities. - Nationally recognized school districts. - Over 5,000 acres of contiguous parkland that will never be developed. - Thousands of acres near Generation Park available for outdoor recreational activities. - Onsite access to a variety of waterways, parks, and hike & bike trails. - Distinguished golf courses with both private and public access - Houston's Redstone Golf Club, home to the renowned Shell Houston Open, is just three minutes from Generation Park. - 1.5 mile long lake and signature Generation Park causeways create a stunning regional character. - Welcoming features such as bridges, canals, boardwalks and pocket parks. - At 11,854 acres, Lake Houston provides the largest recreational body of water in Houston.

Generation Park is a 4,000 acre master-planned commercial

development Ideally located on the Northeast Corner of

Beltway 8/Sam Houston tollway

GENERATION PARK

Esperanza at Wilson Road

HOUSTON, TEXAS 2 0 1 8 B A C K O N T R A C K

REGION IN PERSPECTIVE

The City of Houston, the largest city in Texas and the fourth largest city in the United States, is located on the

coastal prairies of southeast Texas and is home to a diverse array of industries and cultures. Houston is located in

Harris County, the nation’s third most populous county. The Houston region, officially designated as the Houston -

Woodlands - Sugar Land Metropolitan Statistical Area (MSA), comprises Harris County and eight other counties:

Austin, Brazoria, Chambers, Fort Bend, Galveston, Liberty, Montgomery, and Waller. The Houston MSA has a

population of approximately 6,772,470 according to new U.S. Census Bureau estimates as of July 1, 2016. The

nine county metropolitan area is the fifth-largest metropolitan area in the nation and covers 9,444 square miles.

The most urbanized portions of the Houston area are in Harris County, the southern part of Montgomery County,

and the eastern section of Fort Bend County. Houston is home to the tenth largest port in the world and is in close

proximity to Mexico, a key trading partner. It has a temperate climate and an affordable cost of living.

Greater Houston Partnership

2018 - HOUSTON BACK ON TRACT

With a population of 2,303,482, according to estimates by the U.S. Census Bureau as of July 1, 2016, the

population base includes a wide variety of racial and ethnic groups that give Houston a rich diversity and

cosmopolitan feel. Among the nation’s metropolitan areas, the Houston MSA ranked fourth in number of

Hispanics (2,429,487), seventh in number of Blacks (1,122,767) and seventh in number of Asians (497,099),

according to the Census Bureau’s 2015 American Community Survey. Harris County covers 1,778 square miles,

enough space to fit New York City, Philadelphia, Boston, Chicago, Seattle, Austin and Dallas, with room still to

spare. At 655 square miles, the City of Houston is larger than six European countries, ranking just below

Luxembourg and above Malta.

The City of Houston lies in three counties: Harris, Fort Bend and Montgomery. Harris County contains the bulk of

the City of Houston with small portions of the city lying in Fort Bend and Montgomery counties. Houston is the

county seat, or administrative center, of Harris County. Harris County contains all or part of 34 incorporated

cities. The Houston MSA includes 124 incorporated communities.

Source: Greater Houston Partnership - Dec 2017

Ever since its founding as a port city, Houston has been a dynamic international marketplace, attracting capital and people from all over the world. Today, Houston is the nation's fourth largest economy, and what Forbes calls "America's next great global city."

Nation's 5th most populous metro area


Houston - The Woodlands - Sugarland MSA GDP forecast ($ billions '09 constant

dollars) Source: Perryman Group

GDP expected to more than double between '15 and '40

If the MSA were an independent nation its

economy would rank 24th largest in the world, behind Taiwan ($523.0 billion), but ahead of

Sweden ($497.9 billion).


maintain trade and commercial offices in Houston

35 active foreign chambers of commerce

Since the dramatic fall of oil prices that occurred in

late 2014, Houston’s economy slowed significantly

and grew at a lesser pace in 2015, 2016 and 2017

than its’ average annual rate. Even though

Houston’s economy saw accelerated growth in

2017, it was well below Houston’s potential. Future

growth forecasts are promising as local economists

forecast about 45,000 jobs or slightly more in 2018

and expect that number to increase annually

through 2021.

1000 Houston Firms Report Foreign Ownership 5,000+ Houston Companies are doing Business Abroad 90+ Nations have Consular Representation in Houston Houston has the 3rd Largest Foreign Representation in the Nation

182 nonstop destinations


Houston’s strategic location and core strengths, including an expanding healthcare sector, cutting-edge medical advancements, technological breakthroughs across industries and strong import/export trade activity (No. 1 US port in foreign tonnage), uniquely position it to play a vital role in meeting national and global market demands. Houston has and will continue to stand as a leader among U.S. metros and the world.

Houston has the largest export market in the U.S.


As the energy capital of the world, Houston was brought along on a roller coaster ride. Despite the tumult that occurred in energy, Houston still managed to produce job growth primarily in industries dependent on population growth (e.g., public education, health care, leisure and hospitality). Job losses occurred primarily in sectors that include Houston’s economic base (e.g., oil and gas, manufacturing).

Port of Houston Ranks 1st in import tonnage for 26 straight years Port of Houston is the largest Gulf Coast container port Port of Houston ranks 2nd in total tonnage for 24 straight years The Texas Medical Center is the world's largest medical complex with $3 billion in construction projects under The Texas Medical Center has 50 million developed square feet


Houston Landlords are Bullish Source: Houston Chronicle 1/24/18

Houston’s economy was jolted in August 2017 when Hurricane Harvey slammed the Texas Gulf Coast and

dumped over 50 inches of rain over a three-day period. The event caused widespread flooding,

destroying homes, businesses and infrastructure. Further, the historical rainfall totals caused supply chain

interruptions, halted distribution logistics and shut down the Port of Houston, manufacturing plants and

retail stores for at least a week. Houston area retail spending rose the week leading up to the event and

then plummeted 58.7% the week after. The good news is that Houston’s resiliency lead to an uptick in

consumer spending within weeks after the event, mostly caused by area residents purchasing

replacement items damaged by the storm.

Harvey, tax code changes may spur apartment demand

Houston apartment landlords are bullish going into the new year amid an improving job market, lower supply pipeline and a post-Harvey environment in which many Houstonians flooded out of their homes are likely to remain renters. "The numbers of people moving back to homes is going to be much less than anticipated," multifamily analyst Bruce McClenny said Wednesday morning at an annual meeting of the Houston Apartment Association. McClenny estimates about 19,000 units were leased as a result of the devastating August hurricane. Several thousand could stay in apartments. A healthier job market in 2018 will bolster demand for rentals. When the price of oil was $52 a barrel, Patrick Jankowski, senior vice president of research for the Greater Houston Partnership, forecast 45,500 jobs would be created this year. It closed Wednesday at $65.61. "If oil prices stay above $60 for two quarters, my forecast will be low," he said at the Galleria-area industry event. Camden Property Trust recently started construction on an apartment tower downtown after it had been delayed during the energy downturn. The company's CEO said Wednesday that changes in the federal tax code will benefit renters.


2 0 1 8 E c o n o m i c F o r e c a s t


Houston was the nation's leader for apartment demand in the 4th quarter 2017 as a flurry of

leasing activity following Hurricane Harvey drove up the metro's overall numbers. The big

surge in demand provided a shot in the arm to an apartment market which had struggled over

the past two years.

The number of occupied units in the Houston metro jumped by 13,755 in the final three months

of 2017. Houston's demand figure was nearly three times that of the nationl's #2 metro, Dallas,

which absorbed 4,715 units in the quarter.

Houston's elevated demand volumnes at the end of 2017 were bolstered by displaced

residents turning to apartments for alterntive housing. Coupled with the changes to the tax

laws the incentive for home ownership in the 25 to 40 year age group has lost the appeal it

once had. Millinials are increasingly lured by apartment living that gives them more economic

and personal freedom, free from the upkeep of a home. Source: realpage.com 2/7/18

"When you double the standard deduction and limit mortgage deduction ... you have shifted the incentives for owning a home versus renting," Ric Campo said. "Doubling that creates more income for our residents." Local apartment rents could grow as much as 2 percent this year, said McClenny, president of ApartmentData.com. Despite low oil prices and an oversupply of rental units the last few years, the market fared reasonably well, said Cyrus Bahrami of Alliance Residential. "We didn't have a lot of foreclosures. We structured our deals better, with less leverage," Bahrami said, referring to the industry as a whole. The market hit bottom in 2016 and began to turn around last year. The hurricane damaged some 15,662 units and by year's end landlords saw an annual average of $42 in rent growth as thousands of flooded homeowners leased apartments, McClenny said. "We saw the concessions go away," said landlord John Boriack. Source: Houston Chronicle 1/24/18

Demand Surge Puts Houston on Top in 4Q 2017

"When you double the

standard deduction and

limit mortgage deduction ...

you have shifted the

incentives for owning a

home versus renting," Ric

Campo said. "Doubling that

creates more income for

our residents."


Source: Greater Hoston Partnership - March 2018

The storm passed, businesses reopened, employees returned to work, and recovery efforts were

underway. Houstonians started rebuilding their homes and replacing storm-damaged furniture and

clothing. Families living in hotels and households without kitchens ate at local restaurants and cafés.

Businesses took on contract workers to help with the cleanup. And wholesalers filled their warehouses

and added to their payrolls to better serve the growing retail and construction trade.

Q4/17 proved to be the best fourth quarter on record for overall job growth in Houston. The region

added 66,200 jobs the last three months of the year. 3 Construction, retail, restaurants, wholesale trade

and employment services set records for job growth in the quarter. Granted, some of the Q4 job growth

resulted from hiring that didn’t occur in September being rolled into October. But even if one

subtracts anticipated September growth (10,000 jobs) from Q4/17, the region

experienced its second best quarter on record. Source: Greater Houston Partnership March 2018

IN SUMMARY

The Perryman Group, a Texas-based economic and financial analysis firm, recently released its latest

GDP, population and employment forecasts. The group expects the Houston metro area’s GDP to grow

at a compound annual growth rate (CAGR) of 3.1 percent from ’15 to ’40 and reach $998.8 billion in

’40. The fastest growing sectors during this period are projected to be in management of companies

and enterprises (4.3 percent CAGR), administrative and support and waste management (4.0 percent),

and health care and social assistance (3.9 percent). Houston will continue to account for

approximately 30 percent of the state’s GDP throughout the forecast period. The Perryman Group

expects Texas’ GDP to grow at an annual rate of 3.2 percent from ’15 to ’40, outpacing the U.S. rate of

2.7 percent. The firm sees Houston’s population growing at a CAGR of 1.6 percent from ’15 to ’40,

reaching 9.9 million in ’40. Wage and salary employment is expected to increase 1.7 percent annually

to 4.7 million in ’40. The Houston metro area is forecasted to add 3.3 million residents and an additional

1.6 million jobs during this period, accounting for 28.0 percent of Texas’ population growth and

onefourth of the state’s employment gains.

The Long-Term Outlook

Esperanza at Birnam Woods ● 23003 Birnam Wood Blvd. ● Spring, TX 77373 Floodplain Map


PLEASE VERIFY!

Esperanza at Birnam Woods ● 23003 Birnam Wood Blvd. ● Spring, TX 77373 Demographics

2000-2010 Census, 2018 Estimates with 2023 Projections

Calculated using Weighted Block Centroid from Block Groups


2018 Estimated Population 9,497 39,774 60,4752023 Projected Population 9,620 41,401 63,1262010 Census Population 8,550 33,117 49,1902000 Census Population 6,853 23,780 35,119

Projected Annual Growth 2018 to 2023 0.3% 0.8% 0.9%Historical Annual Growth 2000 to 2018 2.1% 3.7% 4.0%

2018 Median Age 30.4 30.4 31

2018 Estimated Households 3,176 13,581 20,6212023 Projected Households 3,352 14,491 22,0672010 Census Households 2,758 10,895 16,1962000 Census Households 2,277 8,074 12,019

Projected Annual Growth 2018 to 2023 1.1% 1.3% 1.4%Historical Annual Growth 2000 to 2018 2.2% 3.8% 4.0%

2018 Estimated White 53.2% 52.3% 54.5%2018 Estimated Black or African American 26.6% 28.9% 26.1%2018 Estimated Asian or Pacific Islander 3.1% 3.6% 4.1%2018 Estimated American Indian or Native Alaskan 0.5% 0.6% 0.6%2018 Estimated Other Races 16.6% 14.6% 14.6%

2018 Estimated Hispanic 36.5% 32.8% 33.1%

2018 Estimated Average Household Income $64,877 $67,871 $70,3022018 Estimated Median Household Income $58,439 $61,104 $61,6712018 Estimated Per Capita Income $21,699 $23,175 $23,973

2018 Estimated Elementary (Grade Level 0 to 8) 6.6% 5.9% 5.7%2018 Estimated Some High School (Grade Level 9 to 11) 7.3% 5.4% 5.0%2018 Estimated High School Graduate 29.2% 29.8% 30.5%2018 Estimated Some College 28.8% 28.7% 28.2%2018 Estimated Associates Degree Only 10.6% 10.8% 10.1%2018 Estimated Bachelors Degree Only 12.5% 13.4% 14.1%2018 Estimated Graduate Degree 5.0% 6.0% 6.5%

2018 Estimated Total Businesses 97 488 8382018 Estimated Total Employees 764 3,608 8,4582018 Estimated Employee Population per Business 7.9 7.4 10.12018 Estimated Residential Population per Business 98.3 81.6 72.2

INC

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Average Income Subject - 1 Mile Radius

EDU

CA

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N(A

GE

25+)

BU

SIN

ESS

RA

CE

AN

D E

THN

ICIT

Y H

OU

SEH

OLD

SPO

PULA

TIO

N

SUMMARY PROFILE1 Mile Radius

2 Mile Radius

3 Mile Radius

Ethnicity - 1 Mile Radius

34%

17% 11%

37%

White Black Asian Other Hispanic

64%

37%

Non-Hispanic Hispanic

$64,877

$72,073

$60,000

$62,000

$64,000

$66,000

$68,000

$70,000

$72,000

$74,000

Subject Houston

2%

D I S C L A I M E R & N O N-E N D O R S E M E N T N O T I C E

FOR INFORMATION PLEASE CONTACT:

KET ENTERPRISES INCORPORATED

4205 San Felipe I Suite 355 I Houston, Tx 77027 www.ketent.com

Broker License #0406902

HASHIR SALEEM

Broker/Senior Associate KET Enterprises Incorporated

[email protected] 713-355-4646 ext 106

Disclaimer: The information contained in this Memorandum reflects material from sources deemed to be reliable, including data such as operating statements, rent rolls, etc. However, we (KET Enterprises Incorporated or any of the owners or officers, directors, employees, agents or representatives of any such entities) have not verified its accuracy and make no guarantee or representation about it. It is submitted subject to the possibility of errors, omissions, change of rental or other conditions. We include projections, opinions, assumptions or estimates for example only, and they may not represent current or future performance of the property. We make no representations or warranties, expressed or implied, as to the validity, accuracy or completeness of the information provided or to be provided, and nothing herein shall be deemed to constitute a representation, warranty or promise by any such parties as to the future performance of the Property or any other matters set forth herein. You and your tax and legal advisors should verify the information and rely on his accountants or attorneys for legal and tax advice. Rates of return vary daily. No representations are made concerning environmental issues, if any. Non-Endorsement Notice: KET Enterprises Incorporated is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by KET Enterprises Incorporated or any of the owners or officers, directors, employees, agents or representatives of any such entities, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY

Esperanza at Birnam Woods

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