322 UNITS | BUILT IN 1985/2003 fort worth, Texas

INVESTMENT HIGHLIGHTS

UNLOCKING THE VALUE-ADD POTENTIAL Over the past 3 years, the Heights of Benbrook has benefitted from substantial capital improvements such as an interior upgrade program consisting of new cabinet fronts, new sinks, resurfaced countertops, brushed nickel hardware, tile backsplash, plank flooring, and upgraded lighting package with ceiling fans. Several competitive properties in the submarket have implemented a higher level of upgrade and are achieving significant premiums. Suggested upgrades may include a technology package, granite or quartz countertops, USB outlets, adding washers and dryer appliances, and the addition of fenced yards. Additionally, the difference in rents from Phase 1, completed in 2003 compared to Phase II, completed in 1985, currently averages only $39 for similarly sized units with very similar floor plans. The difference between nearby competing renovated communities built in the 1980’s as compared to renovated communities built in the 1990’s or early 2000’s is well over $200. There should be a natural premium for the newer phase, in addition there is substantial value to be added across all units in both phases. An analysis of premiums availablefor specific upgrades can be seen in the table below.

OPPORTUNITIES TO INCREASE OTHER INCOME The opportunity exists for a new owner to significantly increase other income through a variety of different revenue streams including the addition of carports on Phase II, and by implementing a premium for the 156 carports already included in the rent in Phase I. Nearby communities average $30 per month for covered parking. With the addition of 164 carports on Phase II, the total covered parking income potential would be an extra $115,920 per year.

HEALTHY SUBMARKET AND PROPERTY RENT GROWTH TRENDS Heights of Benbrook is in a prime location within the Southwest Fort Worth submarket, which has averaged an impressive 94.4% occupancy over the last 5 years, and 95.2% in the most recent 24 months. The area within 1-mile of the property has no other large apartment communities. However, one property is currently under construction which will have rents of $1,350 or $1.40 per square foot. The nearby competition is performing extremely well as is evidenced by the submarket rent growth table below.

REALIZABLE VALUE-ADD POTENTIAL Heights of Benbrook has been transformed over the last 3 years with a systematic interior value add program. The 286 units that have been renovated are currently achieving premiums of $98 over 1BR units, and $104 over 2BR units.

NEW DEVELOPMENT ALONG THE CHISHOLM TRAIL PARKWAY Southwest Fort Worth continues to experience tremendous growth following the 2014 completion of the Chisholm Trail Parkway and the population will continue to proliferate over the next decade. Exceptional development projects such as Waterside, Clearfork, Ventana, Walsh Ranch, and Tavolo Park are responsible for providing major economic impact for the entire city of Fort Worth as well as surrounding areas. Additionally, the Chisholm Trail Parkway has turned the once minimum 30-minute commute from Heights of Benbrook to Downtown Fort Worth into a maximum of 15-minutes.

POWERFUL ECONOMIC AND EMPLOYMENT DRIVERS Fort Worth is the 15th largest city in the nation and the fifth largest city in Texas. With more than 30,000 companies, including three on the Fortune 500 list, Fort Worth ranks among the top business destinations in the world. Tourism brings in approximately 7.5 million visitors annually and contributes over $900 million annually to the local economy. The Fort Worth-Arlington Metropolitan Division, which accounted for the remaining 29 percent of the area’s workforce, added 31,300 jobs during the 12-month period, a gain of 3%. This is evident by the extremely low unemployment rate in Fort Worth of 3.8% and this trend is expected to continue due to the continued announcement of new businesses in the area.

MINUTES FROM PRIME NEW RETAIL Residents can enjoy the convenient access to many nearby retail and entertainment options,but the most exciting is the Waterside development which is home to Whole Foods.

Fort Worth, TX Overview

The city of Fort Worth is rich in culture, entertainment and business and now home to more than 875,000 residents. Fort Worth added 18,664 residents over the last year, the 4th most of any city in the country, and is now the nation’s 15th largest city. With a thriving and diverse business environment, Fort Worth has become a major center for industry, technology, distribution, and transportation. Fort Worth is a vibrant and booming city with an average age of 31.5 which ranks as the youngest city in Texas.

Fort Worth’s central U.S. location, low tax structure, cost effective environment, highly skilled workforce, abundant labor pool, quality schools, and pro-business attitude help make the city an ideal location for any business. American Airlines, Lockheed Martin, BNSF Railway, Pier 1 Imports, Acme Brick, Justin Brands, and GE Manufacturing Solutions are among the household names that call Fort Worth home. With more than 30,000 companies, including three on Fortune 500 list, Fort Worth ranks among the top business destinations in the world.

Fort Worth is consistently ranked among the top places in the nation to work, live and do business by Money, Fortune, Site Selection, and Newsweek magazines. One of the inescapable variables in choosing a place to live and work is cost of living, and Fort Worth’s cost of living is nearly 14 percent below the national average.

Designated as one of America’s “Most Livable Communities” by the Partners for Livable Communities, Fort Worth prides itself on being a city of cowboys, culture, commerce, and community. With more than 109 acres of museum space, Fort Worth has the second-largest number of accredited museums within walking distance of each other, second only to Washington D.C. There are many things to do and see in Fort Worth and tourism brings in approximately 7.5 million visitors and contributing over $900 million annually to Fort Worth’s economy.

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invESTMENT ADVISORS

WILLIAM JARNAGIN

Senior Director

972.458.6868

will.jarnagin@berkadia.com

TAYLOR HILL

Senior Director

972.458.4591

taylor.hill@berkadia.com

jay gunn

Managing Director

972.458.4589

jay.gunn@berkadia.com

Tom burns

Managing Director

972.458.6833

tom.burns@berkadia.com

Michael Ware

Senior Director

972.458.6841

michael.ware@berkadia.com

FINANCING

JASON RICE

Managing Director

214.360.3811

jason.rice@berkadia.com

JOHN REED Senior Managing Director 804.780.9210 john.reed@berkadia.com

DALLAS OFFICE

5960 Berkshire Lane Suite 1000 Dallas, TX 75225

Berkadia®, a joint venture of Berkshire Hathaway and Jefferies Financial Group, is an industry leading commercial real estate company providing comprehensive capital solutions and investment sales advisory and research services for multifamily and commercial properties. Berkadia® is amongst the largest, highest rated and most respected primary, master and special servicers in the industry.

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