Ashford Park

AshfordParkApartments
JimHurd7137836262 TomWilkinson7133554646
MultiFamilyOffering
Good WestheimerCorridorLocation C+GradePropertyinaB MarketArea

92%Occupied AskingPrice~$5,000,000
$27,777/Unit $29.25/SF
HOUSTON INCOME PROPERTIES, INC. KET ENTERPRISES INCORPORATED

TEXAS MULTI-FAMILY BROKERAGE BROKER: Jim Hurd HOUSTON INCOME PROPERTIES, INC. (713) 783-6262 Broker's License #0393404 Email: jhurd@houstonincomeproperties.com BROKER: Tom Wilkinson KET ENTERPRISES INCORPORATED (713) 355-4646 Broker's License #0406902 Email: twilk4@ketent.com
Ashford Park Apartments

2700 Dairy Ashford Houston, TX 77082 Key Map: 488V
Asking Price: Price / Unit: Price / SF: Seller's Equity:
RecentForeclosure~Available"AllCash"~ BuyertoObtainNewFinancing PROPERTY INFORMATION Units: Avg Size: Date Built: "E" Mtr/"W" Mtr: Roof: Rentable Sq Ft: Land Area (Acres): 180 950 1982
FINANCIAL INFORMATION
$5,000,000 $27,778 $29.25 $5,000,000
Indiv / Mast.
Composition/Pitched
Good Value Add Investment Opportunity Post Rehab & Stabilization

Mth. Coll.
The property is 91% occupied as of 72511. The Ashford Park apartment community has a good Westheimer corridor location placing its residents within minutes of over 35,000 sf of prime commercial space found in the Galleria $109,668 $109,474 $104,517 $100,968 Financial District and the Westchase Financial District just to the east of the Property Highlights community. Numerous major retail outlets including Randall's, WalMart, Sam's 1. Recent Foreclosure ~ Available "All Cash" / No Owner Financing ~ Buyer Club, Walgreen's, Lowes and Home Depot are basically within walking distance to Obtain new financing. Grade C+ Property in a "B" market area. from the site. Its location near Beltway 8 (which loops around Houston) and its 2. Good Westheimer Corridor Location. Located in the desirable Greater proximity to the Westpark Tollway and IH10 allows the property to have access West Houston area surrounded by upscale neighborhoods with much higher to most of the major employment areas of Houston as well as shopping and than average median household incomes and home values. The property is dining. The property's unit mix consists of seven different 1, 2 and 3 bedroom less than 1 mile from the prestigious Westside Tennis Club and Westside floor plans which includes some townhomes. Golf Club just a few miles from the Energy Corridor and the Westchase UNIT MIX (Rents as of Mar, 2011) District of Houston. 3. "B" Grade Occupancies are in the mid to high 90% range within a mile #Units Type Notes SF/Unit Total SF Rent Total Rent Rent Per SF radius of the property. 4. Good Upside Potential ~ The property has a low turnover rate, a new 35 11 FP 622 21,770 $520 $18,200 $0.836 owner should see upside in the collections with interior upgrades and 8 11 FP 776 6,208 $575 $4,600 $0.741 29 11 Den 790 22,910 $675 $19,575 $0.854 correction of deferred maintenance on this property. Some units may be 68 22 FP 1,103 75,004 $760 $51,680 $0.689 heavy turns. 8 22 THFP 1,113 8,904 $760 $6,080 $0.683 5. There are approx. 8 tenants that receive rent subsidy from the 1,125 $799 $19,176 $0.710 24 32 FP 27,000 government. 8 32 THFP 1,142 9,136 $799 $6,392 $0.700 950 170,932 $698 $125,703 $0.735 180 92% TOTALCOLLECTIONS(Approximately92%Occupancyasof72511) Jul2011 Jun2011 May2011 Apr2011
total units Occ. avg sf total/sf avg rent total rent avg$/sf
6.49 Recent Foreclosure ~ Good Value Add Deal ~ with interior upgrades and the 170,932 correction of deferred maintenance. Available All Cash ~ No Owner Financing.
Ashford Park Apts.
OneoftheUnitsisbeingusedastheLeasingOffice FP=Fireplace,TH=Townhome
Unit Mix Stats
40%
ByUnitType
5% 19% 4%
16%
BySq.Ft.
38%
18%
11 22
42%
13% 5%
776 1,125 790 1,142 1,103
32
622 1,113
UNIT AMENITIES (Features vary by Individual Floor Plan)
Directions from Downtown Houston: Take I10 W., travel 14.5 miles, take the Dairy Ashford Rd. exit, travel 0.2 mile, turn left onto N.DairyAshfordRd.,travel3.6miles,thepropertyisontheright.
WoodBurningFireplace,CentralAir/Heat,CarpetedFloors,Huge WalkInClosets,Individual HotWaterHeater,Dishwasher,FullSize Washer/Dryer Connections, BreakfastBarwithServingArea,Large SpaciousPantry,CeilingFans,VaultedCeilings, OutsideStorage
Page 1 of 16

TEXAS MULTI-FAMILY BROKERAGE
BROKER: Jim Hurd
BROKER: Tom Wilkinson

2700 Dairy Ashford Houston, TX 77082
Good Value Add Potential Post Rehab
PhysicalInformation
NumberofUnits 180 AvgUnitSize(SF) 950 NetRentableArea 170,932 LandArea{Acres} 6.49 UnitsperAcre 27.7 DateBuilt 1982 Individual eMet wMeter Master RoofStyle Composition/Pitched HVACSystem Individual
FinancialInformation
AskingPrice $5,000,000 $27,778 Est.PerUnitPrice Est.PerSFPrice $29.25 $2,000 Est.Rehab/Upgrades/Unit $360,000 TotalEst.Rehab $5,360,000 AskingPrice+Rehab
EST. BUYER'S EQUITY REQUIREMENTS
Down Pmt. On Ask Price Down Pmt. With Rehab
35% 35%
$1,750,000 $1,876,000
Estimated NewLoanParameters Lender ToBeDetermined 6.50% Est.InterestRate Est.NewLoanAmount: $3,484,000 $23,524 Est.P&I: 300 Amortizing(months): 10Years Term: $300 Est.Reserve/Unit: 8.10% Est.LoanConstant: EstimatedLoaniswiththeEstimated RehabDollarsIncluded
OperatingInformation
CurrMktRent{Jul11} $125,703 $125,703 RentsUsedonProForma $106,157 Collections{JulT4Avg} $109,474 Collections{Jul2011} EstPhy.Occ.{7252011} 92% Est.InsperUnitperYr $400 PropertyTaxInformation 2010Rate/$100ofValue 2.70753 2011TaxAssmt $4,717,755 Tax Assmt. @ 95% of Asking Price $4,750,000
MODIFIED ACTUALS
Income is Actual July 2011 Annualized Due to Foreclosure Expenses are Pro Forma Except where noted
STABILIZED PRO FORMA

Income is Estimated Expenses are Estimated Except where noted
INCOME
CurrentMarketRentwitha{%}RentIncreasewhichequatestoanavgrentof{$698}/Uor{.735}/SF LosstoLease{1.0%}ofTotalStreetRentEstimated EstimatedGrossPotentialIncome VacancyEstimatedat{7.0%} Credit/Concess/Admin/OtherRentalLossesEstimatedat{7.0%} 1,202,211 {80%}ofCurrentMarketRents TotalRentalIncome{Estimated} 71,670 $398/Unit/Yr OtherIncome{IncludesLaundry,ForfeituresandMisc.} 1,273,881 $106,157/Mo TotalIncome
1,508,436 (15,084) 1,493,352 (105,591) (105,591) 1,282,171 60,000 1,342,171
$125,703/Mo 1.0% 99.0% 7.0% 7.0% {85%}ofProFormaR $333/Unit/Yr $111,848/Mo
EXPENSE
FixedExpenses Taxes Insurance TotalFixedExpense Utilities Electricity Water/Sewer Water/RUBS Gas TotalUtilities OtherExpenses General&Admin Advertising/Marketing Repairs&Maintenance LaborCosts ContractServices ManagementFees TotalOtherExpense
Estimated
Estimated
FixedExpenses
$127,735 $710perUnit $65,160 $362perUnit 2010Assmt.and2010Rate Estimated 192,895 $1,072/Unit
FixedExpenses
$128,608 $714perUnit $72,000 $400perUnit ProFormaAssmt.and2009Rate
Estimated 200,608 $1,114/Unit
Utilities
$23,223 $76,280 $0 $1,391 $129perUnit $424perUnit $perUnit $8perUnit
EstimatedUtilities Actual Actual Not Implemented Actual 100,894 $561 / Unit Estimated Estimated Estimated Estimated Estimated
Basedonaboveincome 386,586 $2,148/Unit 680,375 $3,780/Unit $24,000 $77,000 ($42,350) $1,400 $133perUnit $428perUnit $235perUnit $8perUnit
Est. 55% Penetration 60,050

$334 / Unit
OtherExpenses
$22,500 $22,500 $72,000 $180,000 $45,000 $44,586 $125perUnit $125perUnit $400perUnit $1,000perUnit $250perUnit 3.5% $248perU
TotalOperatingExpense ReserveforReplacementEstimated TotalExpense NetOperatingIncome AskingPrice/AskingPrice+Rehab Debt Equity DebtService CashFlow CashonCash CapRate
EstimatedOtherExpenses $22,500 $125perUnit $22,500 $125perUnit ` $72,000 $400perUnit $180,000 $1,000perUnit $45,000 $250perUnit $46,976 3.5% $261perU Based on above income 388,976 $2,161/Unit 649,634 $3,609/Unit
54,000 $300/Unit 734,375 $4,080/Unit 539,506 $2,997/Unit 5,000,000 10.8%

withoutrehab
54,000 $300/Unit 703,634 $3,909/Unit 638,537 $3,547/Unit 5,360,000 11.9%

3,484,000 1,876,000 282,291 356,246 withrehab
19.0%
NOTES ON ACTUALS: Income is July 2011 T-4 annualized, Expenses are Actual 2010 and Pro Forma where noted. NOTES ON PRO FORMA: Income is Pro Forma as Noted. Expenses are Estimated. Taxes are estimated using the 100% Asking Price for the assessment and 2010 rate.
DISCLAIMER: The information contained in this Memorandum reflects material from sources deemed to be reliable, including data such as operating statements, rent rolls, etc provided by the Owner. Notwithstanding, Houston Income Properties, Inc. 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 tax and legal advice. This offering is "As-Is, Where-Is" and subject to prior withdrawal without notice. Answers to specific inquiries will have to be supplied by the Owner and are available upon request. Rates of return on this apartment investment vary daily. No representations are made concerning environmental issues, if any. Information about Brokerage Services has been provided with this offering memorandum.
Page 2 of 16

TEXAS MULTI-FAMILY BROKERAGE
BROKER: Jim Hurd
BROKER: Tom Wilkinson

Number of Units: Date of Construction: Roofs: HVAC System: Metering:
Potential Stabilized Value ~ Post Rehab

Property Information
170,932 950 $125,703 $698 / Unit
180 Approximate Net Rentable Area: 1982 Average Unit Size: Composition/Pitched Current Monthly Market Rent: Individual Individual Master 92% Post Rehab Stabilized Rents Used: Est. Rehab Needed Per Mgmt.: 2009 Tax Rate: 2009 Tax Assessment: Post Sale Assessment Used:
$.735 / SF
Electric Water
$125,703 $698 / Unit $.735 / SF $450,000 $2,500 / Unit 2.707531 $4,717,755 $5,000,000
Assmt is 100% of the Asking Price
Est. Current Occupancy:
STABILIZED PRO FORMA Income Current Market Rent with an approximate {0%} Rent Increase (Post Rehab) Gain/(Loss) to Lease Vacancy, Credit and other Losses Credit/Concess/Admin/Other Rental Losses Estimated at {7.0%} Total Rental Income Total Other Income Total Estimated Gross Annual Income Expenses Fixed Expenses Property Taxes (taxes are at 2010 Rate and pro forma assessment) Insurance Total Fixed Expenses Management Fee (Pro Forma is Estimated @ 3.5%) Payroll plus Burden Utilities (Water, Gas, and Electricity for all units) Water Reimbursement @ 55% penetration (RUBS Implemented) Repairs, Maintenance and Make Ready Marketing Contract Services (Landscaping, Pest Control, Refuse Removal, Courtesy Patrol) General and Administrative Costs Estimated Reserve for Replacement Total Expenses ~ (average Unit size is {950} Sq. Ft.) Estimated Stabilized Net Operating Income 1,508,436 (15,084) (105,591) (105,591) 1,282,171 125,703 1% 7% 7% 85%
60,000 $333 / Unit 1,342,171 $111,848 / Mth
135,377 Pro Forma 72,000 Est. 207,377 46,976 180,000 102,400 (42,350) 72,000 22,500 45,000 22,500 54,000
$752 / Unit $400 / Unit $1,152 / Unit $261 / Unit $1,000 / Unit $569 / Unit $235 / Unit $400 / Unit $125 / Unit $250 / Unit $125 / Unit $300 / Unit
710,403 $3,947 / Unit

$4.16 / SF
$631,768
Estimated Potential Value Based on a Stabilized NOI of $631,768

Cap Rate 8.75% 9.00% 9.25% Value Generated $40,112 / U $42.24 / SF $7,220,207 $38,998 / U $41.07 / SF $7,019,645 $37,944 / U $39.96 / SF $6,829,925
Page 3 of 16


2700 Dairy Ashford Houston, TX 77082 488V Key Map:
Windemere Apts ~ Almost Stabilized at sale ~
Located 3.3 miles northwest of the Subject 8/1/09 $8,077,000 $31,428 $40.87 Sold Date: Sales Price: Price Per Unit: Price Per SF:
Mediterra At Westchase ~ Almost Stabilized at sale ~

Located 3.9 miles northeast of the Subject 1/1/11 $11,300,000 $36,334 $45.19 Sold Date: Sales Price: Price Per Unit: Price Per SF:
Green Tree Place

Located 8.7 miles northwest of the Subject 1/10/11 $8,860,000 $41,792 $55.87 Sold Date: Sales Price: Price Per Unit: Price Per SF:
Place at Green Trails ~ Almost Stabilized at sale ~

Located 1.6 miles southeast of the Subject 10/24/10 $9,000,000 $32,727 $42.04 Sold Date: Sales Price: Price Per Unit: Price Per SF:
Water Song ~ Stabilized at sale ~

Located 2.8 miles northwest of the Subject 9/1/10
Property Number
Sold Date: Sales Price: Price Per Unit: Price Per SF:
Apartment Sales Comparables (sorted by $/per/unit)

Sold Total SF Avg/SF Price Pr./U Pr./SF Blt. #/U
$11,550,000 $42,463 $55.31
NW Houston ~ Almost Stabilized at sale ~

Located 1 mile northwest of the Subject UC $5,553,210 $28,478 $37.03 Sold Date: Sales Price: Price Per Unit: Price Per SF:
Windemere Apts Almost Stabilized Mediterra At Westchase Almost Stabilized Place at Green Trails Almost Stabilized Green Tree Place Stabilized Water Song Stabilized NW Houston Almost Stabilized
Aug-09 Jan-11 Oct-10 Jan-11 Sep-10 UC
197,633 250,044 214,079 158,580 208,822 149,955 196,519 170,932
769 804 778 748 768 769 773 950
$8,077,000 $31,428
$11,300,000 $36,334
$40.87 1982 $45.19 1981 $42.04 1983 $55.87 1984 $55.31 1978 $37.03 1982 $46.05 1982 $29.25 1982
257 311 275 212 272 195 254 180
$9,000,000 $32,727 $8,860,000 $41,792

$11,550,000 $42,463 $5,553,210 $9,056,702 $5,000,000 $28,478 $35,537 $27,778
AverageCompsOnly
AshfordParkApartments
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TEXAS MULTI-FAMILY BROKERAGE BROKER: Jim Hurd HOUSTON INCOME PROPERTIES, INC. (713) 783-6262 Broker's License #0393404 Email: jhurd@houstonincomeproperties.com 2009 O'Connor & Associates Occupancy and Rent Survey - {Rent Comps) Custom Market Area, March 2011 BROKER: Tom Wilkinson KET ENTERPRISES INCORPORATED (713) 355-4646 Broker's License #0406902 Email: twilk4@ketent.com
Rent Comparisons within a 1 mile radius
Project
Address
Dist From Subj. 0.1 0.4 0.5 0.6 0.8 0.8 0.8 0.9 0.9 0.9
Yr. Built
Units
SF/Unit
Rent/Unit Rent/SF
Occ..
Charleston 2800SDairyAshford HuntersPoint 12580PipingRockLn. MansionsofShadowbriar 12200Overbrook WestOaks 2400BriarwestBlvd 12730Whittington Gables,The 2475GrayFalls WestChaseCrossing Whittfield 12735Whittington AshtonPark 1910WestMead 2215AvenidaLaQuinta BriarwoodVillageI&II WaldenPond 12850Whittington RentCompAverages AshfordParkApartments SubmarketAverages"B"Properties Houston"B"MarketAverages
1980 1983 1983 1982 1983 1982 1983 1982 1983 1982
180
312 72 328 671 140 366 195 720 342 416 3562 180 10,918 232,493
725 749 1004 725 895 763 681 812 819 721 789 950 870 839
$581 $719 $826 $631 $729 $567 $609 $556 $638 $573 $643 $698 $690 $683
$0.81 $0.98 $0.83 $0.89 $0.82 $0.74 $0.91 $0.71 $0.78 $0.80 $0.83 $0.74 $0.81 $0.83
72.00% 94.00% 97.00% 90.00% 99.00% 90.00% 97.00% 89.00% 96.00% 95.00% 91.90% 91.67% 89.00% 87.19%
RentComparisonChart
Houston"B"Market Subject's"B"Market RentCompAverages MansionsofShadowbriar Gables,The HuntersPoint AshfordParkApartments BriarwoodVillageI&II WestOaks Whittfield Charleston WestChaseCrossing WaldenPond WestChaseCrossing AshtonPark $0 $100 $200 $683 $690 $643 $826 $729 $719 $698 $638 $631 $609 $581 $567 $573 $567 $556 $300 $400 $500 $600 $700 $800 $900
SUBJECT
Rent/Unit
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AMENITIES (Features Vary By Individual Floor Plan )

2700 Dairy Ashford Houston, TX 77082 Key Map: 488V
Good Upside Potential with Stabilization PROPERTY TAX INFOR.
HCAD NO. 402250010001 Rate/$100 Taxing Authority 0.02054 Port of Houston Authy 0.61602 Harris County 1.34000 Alief ISD City of Houston 0.63875 Houston Community Colleg 0.09222 2010 Rate / $100 of Value 2011 Tax Assmt 2011 Approx. Total Tax $2.7075 $4,717,755 $127,735
UnitAmenities~PrivateBalcony/Patio,Miniblinds,Dishwasher,Disposal,CeilingFans, Pantry,WalkInCloset,FrostFreeRefr.,WoodBurningFireplace,Washer/Dryer Connections,VaultedCeiling,ExtraOutsideStorage,PropertyAmenities ~FitnessCenter, TennisCourt,VideoLibrary,Clubhouse,CableTVAvailable,SwimmingPools,Convenient LaundryCenters,DiningRooms,VarietyofFloorPlansincludingsomeTownhomes, Playground,PerimeterFence,EntranceGate,Park&RideNearby,SchoolBusPickUp AREA INFORMATION
CONSTRUCTION
Hot Water: Elec Meter: AC: Water Meter: Access Gates: Roof: Copper Indv. Hot Water Htrs Wiring: Brick and Hardiplank Materials: Individual 2 # of Stories: Individual Parking: Open Master 28 # Buildings: Yes Composition/Pitched Units/Acre: 27.73 AERIAL ~ Ashford Park Apartments
Ashford Park
is conveniently located in west of Downtown Houston off Dairy Ashford and Westheimer Rd. The location has good access to most areas of Houston via Beltway 8, Hwy 6, Westpark Tollway, Westheimer and S. Gessner Dr. The property is just a few miles from two of the most premier business districts in Houston, Galleria Uptown and the Westchase District. Also located within a short commute are the bedroom communities of southwest Houston such as Sugar Land (approximately 6 miles), Stafford (approximately 12 miles), Bellaire (approximately 11 miles). The area has excellent cross town access via Beltway 8, WestPark Tollway, Gessner, Westheimer all of which connect to one of the major freeways of the area and are just a few miles from the property allowing good access to most of the important business center in the Houston area, including an approximate 19 mile commute to Downtown Houston. The property's tenants have convenient access to major retail centers and numerous entertainment and dining venues as well. The Westchase District ~approximately 3 miles east 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 Area ~ just under 11 miles east of the property and houses more than 23.6 million square feet of commercial office space which represents approximately 12 percent of Houstons 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.
2010 DEMOGRAPHICS - Geography - 3 Mile Radius Estimated Population 2010 1 Mile Radius - 20,974 3 Mile Radius - 162,222
Black, 16.50% Asian, 14.60%
2010 Housing Units

Total Housing Units: 80,584 Occupied: 65,675 Owner Occupied: 28,607 Renter Occupied: 37,068 Vacant Units: 14,873 Estimated Average Income 1 Mile Radius Avg. Income Subject: $85,140 Avg. Income Houston: $71,127 2009 Est. Hispanic Ethnicity-3 Mile Radius
Of Hispanic Ethnicity 31% Not Hispanic 69%
Other, 8.90%
Population within a 3 mile radius
Multi-Race, 4.40%
White, 55.60%
Page 6 of 16


2700 Dairy Ashford Houston, TX 77082 488V Key Map: Area and Regional Economic Information
Houston and Its Economy: According to Forbes Magazine, Joel Kotkin, distinguished in urban futures at Chapman University, states that, if you want to see successful 21stcentury urbanism, go to Houston and the Lone Star State. Houston added 141,000 residents, more than any region in the U.S. save the city's similarly sprawling rival, DallasFort Worth. Over the past decade Houston's population has grown by 24%five times the rate of San Francisco, Boston and New York. In that time it has attracted 244,000 new residents from other parts of the U.S., while older cities experienced high rates of outmigration. Houston is the fourth largest city in U.S. but the population growth rate has taken this metropolis at 2nd position. A remarkable difference can be seen in the population growth of the state in last decade. The well educated environment has even not let this factor affect the development of the state. It is even catching up on foreign immigration, enjoying a rate comparable with New York's and roughly 50% higher than that of Boston or Chicago. What Houston has that these other cities lack is opportunity. A study by the Brookings Institution indicates that Houston is impressively outpacing many other global cities heading out of the recession . Other large cities talk about jobs, but by keeping taxes, fees and regulatory barriers high they discourage the creation of jobs, at least in the private sector. In Houston and the state of Texas these barriers are reduced substantially in favor of small business. The Texas economy is smoking. Since the collapse of the housing bubble Houston has outperformed Sunbelt counterparts like Phoenix, Las Vegas and Los Angeles. A big factor has been that manufacturing, professional services, international trade and technology industries have been the primary drivers of the city's economic growthrather than construction and speculation. Ironically, this has increased home values. Since 2007 prices of homes in Houston have ticked slightly higher, while those in Las Vegas, Phoenix, Los Angeles and the Bay Area each are down by more than 35%. Houston has considerably expanded its whitecollar workforce. According to the Praxis Strategy Group, Houston's ranks of college educated residents grew 17% between 2005 and 2010. That's about on par with "creative class" capital Portland, Ore. and more than twice the rate for New York, San Francisco or Los Angeles. Houston's biggest advantage is ambition. Texas urbanites are busy constructing new suburban town centers, reviving innercity neighborhoods and expanding museums, recreational areas and other amenities. In contrast with recessionbattered places like Phoenix, Houston remains remarkably open to legal migrants from the rest of America and abroad.
Ashford Park is located in the Far West submarket of Houston. This market consists of mainly "B" grade apartment communities with a few "A" properties. The property's location is within a few miles of the Energy Corridor and the Westchase District, two of Houston's most prestigious business districts and top performing office markets. These business districts have over 20 million square feet of office space, over one million square feet of retail space, and a workforce of over 100,000. The property is within 1/2 mile of the Westside Tennis Club, one of the better clubs of its type in Houston. The single family residential neighborhoods to the north of the property are upscale neighborhoods with much higher than average median household incomes and home values. Well maintained Multi-family properties with good tenant services within a mile of Ashford Park seem to maintain occupancy in the mid to upper 90% range, and above average rents compared to similar properties in other areas of Houston.
Page 7 of 16

2009 O'Connor & Associates
1-800-856-REAL www.oconnordata.com market.research@poconnor.com
Apartment Market Statistical Overview - Summary
SubMarket of Houston: Far West Mar-11
Far West Submarket of Houston
Property / Unit Information

Total # Projects Total # Units Total # Units 0BR Total # Units 1BR Total # Units 2BR Total # Units 3BR Total # Units 4BR Avg Units per Project Avg SF Total # Units Under Construction Total # Units Proposed A 41 12,062 0.20% 22.70% 17.40% 2.60% N/A 294 976 N/A N/A B 41 10,918 0.50% 23.40% 15.80% 3.00% 0.10% 266 870 144 N/A C 19 3,448 0.00% 2.10% 5.70% 3.80% 0.90% 181 1149 N/A N/A D 2 453 N/A 0.30% 0.80% 0.70% N/A 227 1250 N/A N/A Overall 103 26,881 0.70% 48.50% 39.70% 10.10% 0.90% 261 959 144 N/A
Occupancy
A Avg Physical Occupancy Avg Leased Occupancy 88.00% 94.55% B 89.00% 92.81% C 82.92% 76.50% D 89.22% 73.34% Overall 87.29% 91.10%
Rental Rates
Avg Market Rent/SF Avg Market Rent/SF 0BR Avg Market Rent/SF 1BR Avg Market Rent/SF 2BR Avg Market Rent/SF 3BR Avg Market Rent/SF 4BR Avg Market Rent/Unit Avg Market Rent/Unit 0BR Avg Market Rent/Unit 1BR Avg Market Rent/Unit 2BR Avg Market Rent/Unit 3BR Avg Market Rent/Unit 4BR A $1.16 $2.00 $1.21 $1.12 $1.08 N/A $1,128 $1,080 $954 $1,311 $1,643 N/A B $0.81 $0.99 $0.84 $0.77 $0.74 $0.58 $690 $496 $593 $790 $936 $1,028 C $0.70 $0.69 $0.77 $0.70 $0.68 $0.61 $776 $483 $555 $734 $916 $1,021 D $0.58 N/A $0.64 $0.58 $0.55 N/A $713 N/A $556 $657 $836 N/A Overall $0.95 $1.23 $1.01 $0.91 $0.79 $0.61 $893 $635 $760 $1,008 $1,103 $1,021
Absorption (In Units)

A Current Month-to-Date Current Quarter-to-Date Year-to-Date 89 65 -31 5 134 124 B 0 90 87 C D 0 -7 -7 Overall 94 283 173
Page 8 of 16

2009 O'Connor & Associates
1-800-856-REAL www.oconnordata.com market.research@poconnor.com
Apartment Market Statistical Overview - Summary

Market(s): Houston Mar-11
Houston Rental Market
Property / Unit Information

Total # Projects Total # Units Total # Units 0BR Total # Units 1BR Total # Units 2BR Total # Units 3BR Total # Units 4BR Avg Units per Project Avg SF Total # Units Under Construction Total # Units Proposed A 595 160,100 0.10% 14.40% 10.40% 1.30% 0.00% 269 954 2,081 1,383 B 1,098 232,493 1.00% 22.30% 17.10% 3.00% 0.40% 212 839 2,519 968 C 775 139,768 0.70% 12.50% 11.00% 1.80% 0.10% 180 826 N/A N/A D 154 20,503 0.00% 1.50% 1.90% 0.40% 0.00% 133 903 N/A N/A Overall 2,622 552,864 1.80% 50.60% 40.40% 6.50% 0.50% 211 868 4,600 2,351
Occupancy
A Avg Physical Occupancy Avg Pre-Leased Occupancy 92.16% 93.63% B 87.19% 88.48% C 81.39% 82.93% D 83.55% 85.19% Overall
87.06% 88.49%
Rental Rates
Avg Market Rent/SF Avg Market Rent/SF 0BR Avg Market Rent/SF 1BR Avg Market Rent/SF 2BR Avg Market Rent/SF 3BR Avg Market Rent/SF 4BR Avg Market Rent/Unit Avg Market Rent/Unit 0BR Avg Market Rent/Unit 1BR Avg Market Rent/Unit 2BR Avg Market Rent/Unit 3BR Avg Market Rent/Unit 4BR A $1.18 $1.57 $1.23 $1.11 $1.05 $0.98 $1,118 $857 $960 $1,280 $1,487 $1,740 B $0.83 $1.05 $0.88 $0.79 $0.74 $0.64 $683 $482 $597 $763 $883 $872 C $0.72 $0.93 $0.76 $0.68 $0.66 $0.68 $583 $431 $502 $644 $800 $927 D $0.63 $0.84 $0.67 $0.62 $0.57 $0.60 $555 $416 $466 $585 $720 $762 Overall $0.89 $1.04 $0.94 $0.83 $0.77 $0.66 $768 $489 $673 $855 $975 $897
Absorption (In Units)

A Current Month-to-Date Current Quarter-to-Date Year-to-Date 320 970 604 262 271 -190 B 294 301 -3 C D 9 60 46 Overall 886 1604 457
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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 .
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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 .
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Disclaimer: While the floodplain data that is shown on the map is the same, this map is not an official effective FEMA Flood Insurance Rate Map (FIRM). This map is for informational purposes only. For an official flood zone determination please contact your insurance agent or floodplain administrator. Please visit the FEMA Map Store at http://msc.fema.gov to create a FIRMette which is an official FEMA FIRM.
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AshfordParkApartmentCommunity
Exclusively Presented By:
HoustonIncomeProperties,Inc. KETEnterprisesIncorporated
HoustonIncomeProperties,Inc. License#0393404
JimHurdBroker 7137836262 jhurd@houstonincomeproperties.com HOUSTON 6363Woodway#370 Houston,Texas77057 7137836262 AUSTIN 912S.CapitalOfTexasHwy#230 Austin,Texas78746 5126108000
KETEnterprisesIncorporated License#0406902
TomWilkinsonBroker 7133554646 Twilk4@ketent.com HOUSTON 4295SanFelipe#355 Houston,Texas77027 7137836262

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Ashford Park

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AshfordParkApartments

Good WestheimerCorridorLocation C+GradePropertyinaB MarketArea

HOUSTON INCOME PROPERTIES, INC. KET ENTERPRISES INCORPORATED

Ashford Park Apartments

$5,000,000 $27,778 $29.25 $5,000,000

Good Value Add Investment Opportunity Post Rehab & Stabilization

Ashford Park Apts.

UNIT AMENITIES (Features vary by Individual Floor Plan)

WoodBurningFireplace,CentralAir/Heat,CarpetedFloors,Huge WalkInClosets,Individual HotWaterHeater,Dishwasher,FullSize Washer/Dryer Connections, BreakfastBarwithServingArea,Large SpaciousPantry,CeilingFans,VaultedCeilings, OutsideStorage

HOUSTON INCOME PROPERTIES, INC. KET ENTERPRISES INCORPORATED

BROKER: Jim Hurd

BROKER: Tom Wilkinson

Ashford Park Apartments

Good Value Add Potential Post Rehab

Down Pmt. On Ask Price Down Pmt. With Rehab

STABILIZED PRO FORMA

1,508,436 (15,084) 1,493,352 (105,591) (105,591) 1,282,171 60,000 1,342,171

$125,703/Mo 1.0% 99.0% 7.0% 7.0% {85%}ofProFormaR $333/Unit/Yr $111,848/Mo

Estimated 200,608 $1,114/Unit

Est. 55% Penetration 60,050

54,000 $300/Unit 734,375 $4,080/Unit 539,506 $2,997/Unit 5,000,000 10.8%

54,000 $300/Unit 703,634 $3,909/Unit 638,537 $3,547/Unit 5,360,000 11.9%

HOUSTON INCOME PROPERTIES, INC. KET ENTERPRISES INCORPORATED

BROKER: Jim Hurd

BROKER: Tom Wilkinson

Ashford Park Apartments

Potential Stabilized Value ~ Post Rehab

Est. Current Occupancy:

60,000 $333 / Unit 1,342,171 $111,848 / Mth

710,403 $3,947 / Unit

Estimated Potential Value Based on a Stabilized NOI of $631,768

HOUSTON INCOME PROPERTIES, INC. KET ENTERPRISES INCORPORATED

Ashford Park Apartments

Mediterra At Westchase ~ Almost Stabilized at sale ~

Green Tree Place

Place at Green Trails ~ Almost Stabilized at sale ~

Water Song ~ Stabilized at sale ~

Apartment Sales Comparables (sorted by $/per/unit)

$11,550,000 $42,463 $55.31

NW Houston ~ Almost Stabilized at sale ~

Aug-09 Jan-11 Oct-10 Jan-11 Sep-10 UC

197,633 250,044 214,079 158,580 208,822 149,955 196,519 170,932

769 804 778 748 768 769 773 950

257 311 275 212 272 195 254 180

$9,000,000 $32,727 $8,860,000 $41,792

HOUSTON INCOME PROPERTIES, INC. KET ENTERPRISES INCORPORATED

Rent Comparisons within a 1 mile radius

HOUSTON INCOME PROPERTIES, INC. KET ENTERPRISES INCORPORATED

Ashford Park Apartments

2010 Housing Units

Population within a 3 mile radius

HOUSTON INCOME PROPERTIES, INC. KET ENTERPRISES INCORPORATED

Ashford Park Apartments

HOUSTON INCOME PROPERTIES, INC. KET ENTERPRISES INCORPORATED

2009 O'Connor & Associates

1-800-856-REAL www.oconnordata.com market.research@poconnor.com

Apartment Market Statistical Overview - Summary

SubMarket of Houston: Far West Mar-11

Far West Submarket of Houston

Property / Unit Information

Absorption (In Units)

HOUSTON INCOME PROPERTIES, INC. KET ENTERPRISES INCORPORATED

2009 O'Connor & Associates