1 4 2 0 E 6 T H S T | I R V I N G , T X

O F F E R I N G M E M O R A N D U M

MATTHEWS REAL ESTATE INVESTMENT SERVICES2

C O N T E N T S

4 PROPERTYOVERVIEW 6 FINANCIAL

OVERVIEW 10 AREAOVERVIEW

DAVID J. HARRINGTON National Director - Multifamily

Direct (310) 295-1170Mobile (310) 497-5590david.harrington@matthews.comLicense No. 01320460 (CA)

DANNY MCQUAID Associate - Multifamily

Direct (214) 932-1284Mobile (903) 237-8901daniel.mcquaid@matthews.comLicense No. 673000 (TX)

PROPERTYOVERVIEW

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P R O P E R T Y D E S C R I P T I O N

• Located in the heart of Irving, TX

• Value-add opportunity with 45% rental upside

• Close proximity to Bowie Middle School

• 8 Unit Apartment Building

• Year Built: 1959

• Number of Stories: 2

• Building Area: 5,928 sqft

• Close proximity to University of Dallas

• Close proximity to dining and entertainment

• Close proximity to Trinity Groves and Downtown Dallas

• Lot Size: 10,230 sqft

• 8 Units: 2 Bedroom - 2 Bathroom

• Windows A/C

FINANCIALOVERVIEW

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UNIT MIX

Total Units Unit Mix Unit Mix % Current Avg Rent Current Monthly Rent Market Rent Market Monthly Rent

8 2+2 100% $553 $4,425 $800 $6,400

Scheduled Monthly Rent: $4,425 $6,400Scheduled Yearly Rent: $53,100 $76,800

INVESTMENT SUMMARY

Offering Price: $500,000 Number of Units: 8Property: 1420 E 6th St Year Built: 1959

Irving, TX 75060 APN: 65-10557-151-006-00-00Price Per Unit: $62,500 Gross Sq. Ft.: 5,928Price Per S.F.: $84.35 Average S.F. Per Unit: 741Cap (current / market): 6.09% / 8.07% Lot Size (Acres): 0.24GRM (current / market): 9.42 / 6.51 Density 33

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MATTHEWS REAL ESTATE INVESTMENT SERVICES8

ANNUALIZED OPERATING DATA

Current MarketScheduled Gross Income: $53,100 $76,800Less Vacancy Reserve: $2,655 $3,840Gross Operating Income: $50,445 $72,960Expenses: $20,006 $32,631Net Operating Income: $30,439 $40,329

PRO FORMA ANNUAL OPERATING EXPENSES

Current Per Unit % of SGIProperty Taxes 2.693% x Sale Price $5,025 $628 9.96%Off-Site Management 6.0% x GOI $3,027 $378 6.00%Insurance $0.35 x GSF $2,074 $259 4.11%Reserves $250 x Units $2,000 $250 3.96%Repairs & Maintenance $400 x Units $3,200 $400 6.34%Turnover $200 x Units $1,600 $200 3.17%Landscaping $50 x Units $400 $50 0.79%Pest Control $100 x Units $800 $100 1.59%Utilities $185 x Units $1,480 $185 2.93%Trash $50 x Units $400 $50 0.79%

Total Expenses $20,006 $2,501 39.66%

Current Per Unit % of SGINon-controllable expenses: Taxes, Ins., Reserves: $9,099 $1,137 17.1%Total Expense without Taxes $14,981 $1,873 28.21%

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RENT ROLL

# Unit Mix Rent Market Rent

1 101 2+2 $575 $800

2 102 2+2 $550 $8003 103 2+2 $550 $8004 104 2+2 $550 $800

5 105 2+2 $550 $800

6 106 2+2 $550 $800

7 107 2+2 $550 $800

8 108 2+2 $550 $800

Totals $4,425 $6,400

Averages $553 $800

AREAOVERVIEW

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#9SAFEST BIG CITY IN THE US

3.2%UNEMPLOYMENT RATE

32.3MEDIAN AGE IN IRVING

I R V I N G , T X Irving is a principal city in Dallas County in the U.S. state of Texas and it is also an inner ring suburb of the city of Dallas, TX. Irving includes the Las Colinas community, one of the first master-planned developments in the United States and once the largest mixed-use development in the Southwest with a land area of more than 12,000 acres. Las Colinas is home to the Mustangs at Las Colinas, which is the largest equine sculpture in the world, as well as many Fortune 500 companies, such as ExxonMobil, Kimberly-Clark, and Fluor Corporation.

In January 2011, the city completed the Irving Convention Center at Las Colinas and continues to develop the area into a mixed-use complex, including a special entertainment district.In the spring, the Four Seasons Resort and Club Dallas at Las Colinas hosts the Byron Nelson Championship, an annual PGA Tour golf tournament. The Las Colinas Country Club hosts the LPGA Tour's Volunteers of America Texas Shootout each spring as well.

POPULATION 1-MILE 3-MILE 5-MILE

2022 Projection 14,014 96,134 230,487

2017 Estimate 13,350 91,316 216,900

2010 Census 12,699 86,374 199,427

Growth 2017-2022 4.97% 5.28% 6.26%

Growth 2011-2017 5.13% 5.72% 8.76%

HOUSEHOLDS

2022 Projection 4,323 29,007 65,423

2017 Estimate 4,124 27,571 71,530

2010 Census 3,932 26,163 75,942

Growth 2017-2022 4.83% 5.38% 9.34%

Growth 2011-2017 4.88% 5.21% 6.17%

D E M O G R A P H I C S

INCOME

2017 Average Household Income $49,824 57,093 62,510

2017 Median Household Income $36,517 $41,176 $44,818

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IRVING

With over 230,000 residents and a work force of 3.3 million people, Irving is a keystone city in the Dallas/Fort Worth Metroplex. Home to

8,500 local and multi-national companies, including the global headquarters of five Fortune 500 corporations and more than 45 Fortune

1,000 companies, Irving's convenient location to two major airports and its sprawling urban business districts are major attractions to the

corporate world.

Attractions

Venues

Restaurants

E C O N O M I C S N A P S H O T

The City of Irving, Texas, is conveniently located in the heart of Central Texas, within the Central Time Zone, and just minutes away from the Dallas/Fort Worth (DFW) International Airport - the country’s fourth busiest airport. Five Fortune 500 and nine Fortune 1000 companies have their global headquarters located in Irving. Irving is home for more than 8,500 companies - large, small and mid-size. With more than 140 international companies currently operating throughout the city, Irving is striving to be the leading international business center in America.

• Several highways transverse Irving. The Airport Freeway, SH 183, runs east-west in the city center, while LBJ Freeway or I-635 crosses the city's northern edge in the same direction. John Carpenter Freeway, SH 114, and the President George Bush Turnpike create an X running northwest-to-southeast and southwest-to-northeast respectively. The Las Colinas area is centered near the intersection of 114 and the President George Bush Turnpike.

• Irving is one of 13 member-cities of the Dallas region's transit agency, Dallas Area Rapid Transit (DART). Currently, Irving is served by numerous bus routes and has two stops along the Trinity Railway Express route. In addition, DART's Orange Line through runs through Irving and Las Colinas to DFW Airport. This connects northern Irving with Dallas through rail in addition to bus routes.

• Currently, the unemployment rate in Irving is 3.4 percent, compared to 5.1 percent in Texas and 4.9 percent nationally, according to the Texas Workforce Commission (February 2017). Irving continues to shine as a vibrant urban community that is a destination for investment and high-wage jobs.

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U P C O M I N G P R O J E C T S

Pioneer Natural Resources' $213 million headquarters • Developer KDC is building the more than 1

million-square-foot complex on Hidden Ridge Drive as part of a larger $1.5 billion mixed-use project

Westin Hotel at the Irving Convention Center• The second-largest Irving project to start this

year, with a value of $82 million. It's next to the $180 million Irving Music Factory entertainment district

C O M P A N Y H E A D Q U A R T E R S

M AT T H E W S R E A L E S TAT E I N V E S T M E N T S E R V I C E S1 4

IRVING, TEXAS

IRVING ATTRACTIONSMandalay Canal The Texas Musicians Museum

The Mustangs at Las ColinasCampion Trails Lake Carolyn

Jackie Townsell Bear Creek Heritage Center

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MATTHEWS REAL ESTATE INVESTMENT SERVICES16

The Dal las-Fort Worth Metroplex is the largest metropol i tan area in the South, and fourth largest in the United States. I t is a center for sport ing events, tour ism and manufactur ing. Dal las and i ts suburbs have one of the highest concentrat ions of corporate headquarters in the United States. Dal las is a center for corporate America. Because of i ts central locat ion relat ive to the rest of the United States, Dal las is a popular convent ion s i te and s i te for many corporate headquarters and home to 21 Fortune 500 companies. Business management and operat ions is a major part of the economy. The Metroplex also contains the largest Informat ion Technology industry base in the state. On the other end of the business spectrum, and on the other s ide of the Metroplex, the Texas farming and ranching industry is based in Fort Worth.

D A L L A S - F O R T W O R T H M S A E C O N O M Y

The central core of Dal las has exper ienced a steady and s igni f icant growth that speaks to i ts h ighly divers i f ied economy. I t has become a hub for real estate and business, establ ishing i tsel f as one of the largest concentrat ions of corporate headquarters for publ ic ly t raded companies such as American Air l ines, Neiman Marcus, Kimberly-Clark, JCPenney, ExxonMobi l and many others. In 2015, Forbes reported that Dal las is “ the best place for business and careers” in Texas. I t ’s the perfect blend of big c i ty l iv ing and rust ic southern charm.

The Dal las economy is expected to grow over the next couple of decades making i t the perfect t ime to not only invest in Dal las real estate, but a lso relocate. As the 9th largest c i ty in the country, Dal las has something for everyone. I t combines c lashing images of the c i ty skyl ine and cowboy vibes. Yet , the c i ty of Dal las descr ibes i tsel f best with the motto: “Big Things Happen Here.”

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S P O R T SThe City of Dal las and the Dal las metropol i tan area is home to teams in s ix major sports : the Dal las Cowboys (Nat ional Footbal l League) , Dal las Maver icks (Nat ional Basketbal l Associat ion) , Texas Rangers (Major League Basebal l ) , FC Dal las (Major League Soccer) , Dal las Stars (Nat ional Hockey League) , and Dal las Wings (Women's Nat ional Basketbal l Associat ion) . Dal las area major col lege sports programs include Patr iots basebal l of Dal las Bapt ist Univers i ty located in southwest Dal las, and the Mustangs of Southern Methodist Univers i ty, located in the enclave of Univers i ty Park. Neighboring c i t ies Fort Worth, Ar l ington, and Denton are home to the Texas Chr ist ian Univers i ty Horned Frogs, Univers i ty of Texas at Ar l ington Maver icks, and Univers i ty of North Texas Mean Green, respect ively.

E V E N T SState Fair of Texas, which has been held annual ly at Fair Park s ince 1886. The fa i r is a massive event , br inging in an est imated $350 mi l l ion to the c i ty 's economy annual ly. The Red River Shootout , which pi ts the Univers i ty of Texas at Aust in against The Univers i ty of Oklahoma at the Cotton Bowl a lso br ings s igni f icant crowds to the c i ty. The ci ty a lso hosts the State Fair Classic and Heart of Dal las Bowl at the Cotton Bowl . Other wel l -known fest ivals in the area include several Cinco de Mayo celebrat ions hosted by the c i ty 's large Mexican American populat ion, and Saint Patr ick 's Day parade along Lower Greenvi l le Avenue, Juneteenth fest iv i t ies, Taste of Dal las, the Deep El lum Arts Fest ival , the Greek Food Fest ival of Dal las, and the annual Hal loween event "The Wake" featur ing lots of local art and music .

P A R K SDal las maintains and operates 406 parks on 21 ,000 acres of parkland. The ci ty 's parks contain 17 separate lakes, including White Rock and Bachman lakes, spanning a total of 4 ,400 acres. In addit ion, Dal las is t raversed by 61 .6 mi les of bik ing and jogging tra i ls , including the Katy Trai l , and is home to 47 community and neighborhood recreat ion centers , 276 sports f ie lds, 60 swimming pools , 232 playgrounds, 173 basketbal l courts , 1 12 vol leybal l courts , 126 play s labs, 258 neighborhood tennis courts , 258 picnic areas, s ix 18-hole gol f courses, two dr iv ing ranges, and 477 athlet ic f ie lds.

CONFIDENTIALITY AND DISCLAIMER STATEMENT

This Offering Memorandum contains select information pertaining to the business and affairs of 1420 E 6th St, Irving, TX 75060 (“Property”). It has been prepared by Matthews Real Estate Investment Services. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Matthews Real Estate Investment Services. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence.

By acknowledging your receipt of this Offering Memorandum for the Property, you agree:

1 . The Offering Memorandum and its contents are confidential;2. You will hold it and treat it in the strictest of confidence; and3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimentalto the interest of the Seller.

Owner and Matthews Real Estate Investment Services expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered.

If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum.

A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Matthews Real Estate Investment Services or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property.

This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum.

E X C L U S I V E L Y L I S T E D B Y :

DAVID J. HARRINGTON National Director - Multifamily

Direct (310) 295-1170Mobile (310) 497-5590david.harrington@matthews.comLicense No. 01320460 (CA)

DANNY MCQUAID Associate - Multifamily

Direct (214) 932-1284Mobile (903) 237-8901daniel.mcquaid@matthews.comLicense No. 02013115 (TX)