BROKER'S OPINION OF VALUE

www.ketent.com4295 San Felipe ● Suite 355 ● Houston, TX 77027

A 80 Unit ● Class C ● Multi-Family Asset

615 ADAMS STREET, BEAUMONT, TX 77705

HATFIELD 615 ADAMS STREET BEAUMONT, TX 77705APARTMENTS FOR SALE

PRICE/UNIT: $35,000PRICE/SF: $77.78

Units: 6 TERMS: ALL CASHAvg Size: 450 PRO-FORMA CAP RATE: 10.70%Date Built: 1973Rentable Sq. Ft.: 2,700Acreage: 0.15Occupancy: 100%Class: C

SALIENT FACTS:

♦ Available on an All Cash Basis only! ♦ Beaumont is Located 90 Miles East of Houston and 25

♦ Located in Beaumont, TX Miles West of Louisiana♦ Strong blue collar profile ♦ Area Plants are Booming♦ Value add potential ♦ Motivated Seller!♦ Across from the new Lamar University building ♦ Remodeled with approximately $21,000 in CapEx Spent!

$210,000

For More Information Please Contact:

Tom Wilkinsontwilk4@ketent.com

713-355-4646 ext 102

1770 St. James Place Suite 382Houston, TX 77056

www.ketent.com

HATFIELD 615 ADAMS STREET BEAUMONT, TX 77705

Asking Price Est Mkt Rent (Mar-20)Price Per Unit Amortization (months) 12 Mo AvgPrice Per Sq. Ft. Debt ServiceStabilized NOI Monthly P & I

Interest RateDate Due

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

Pitched

PRO-FORMA INCOMECurrent Street Rent with a 5% Increase $3,386 / MoEstimated Gross Scheduled Income $3,386 / MoEstimated Loss to Lease (2% of Total Street Rent) 2%Estimated Vacancy (7% of Total Street Rent)Estimated Concessions and Other Rental Losses (3% of Total Street Rent) 3%Estimated Utilities IncomeEstimated Other Income $175 / Unit / YrEstimated Total Rental IncomeESTIMATED TOTAL PRO-FORMA INCOME $3,192 / Mo

Estimated 2020 Income

Fixed Expenses2019 Tax Rate & Future Assessment

Estimated

$830 per Unit $809 per Unit

Gas

Total Utilities $930 per Unit $930 per Unit

Other ExpensesGeneral & Admin & MarketingRepairs & MaintenanceLabor CostsContract ServicesManagement Fees 0.00% $ per Unit 0.00% $ per UnitTotal Other Expense $650 per Unit $650 per Unit

Total Operating Expense $2,410 per Unit $2,389 per UnitReserve for Replacement $ per Unit $250 per Unit

Total Expense $2,410 per Unit $2,639 per UnitNet Operating Income (Actual Underwriting)

Asking Price "As-Is" Price "All In" PriceCap Rate

Proposed DebtEquityEstimated Debt ServiceCash Flow

Cash on Cash

147,00063,000

$2,754

Estimated 2020 Expenses

$2,100$350 per Unit$2,100$2,880 2019 Tax Rate & 2019 Assessment

$350 per Unit

$1,080

$459 per Unit$350 per Unit

16,071

24,240

0

Estimated Utilities

$0 $ per Unit

$2,400 $400 per Unit

$50 per Unit$300$ per Unit

$0

5,580Trash

Water & Sewer

$180 per Unit

Date Built

$0 $ per Unit

UtilitiesTotal Fixed Expense

UtilitiesElectricity $400 per Unit$2,400

4,980

$2,100

INCOME

$480 per UnitTaxes

EXPENSE$38,700

Fixed Expenses

Insurance

2.72636Tax Rate (2019)

Est Future Taxes @ 80%

38,309

$101,030

$101,030Est 2019 Taxes

$ per Unit

14,460

$50 per Unit

Other Expenses

$600 per Unit$ per Unit

$3,600

$350 per Unit

$180 per Unit$1,080

Estimated Other Expenses

MODIFIED ACTUALS

$0$ per Unit

3,900

4,854

(813)

Operating Information

NOTES: ACTUALS: Income and Expenses areestimated. Taxes are based on the 2019 Tax Rate & 2019 Assessment. PRO FORMA: Income is Pro Forma as Noted. Taxes were calculated using 2019 Tax Rate & Future Assessment. Insurance is estimated. Management Fees calculated as .% of Gross Income, Other expenses are Estimated for the Pro Forma.

14,460

5,580

$2,100

100%

7%

$350$8,169

360

$681

$300

3.75%

2019 Tax Assessment$2,754

40,635

Est Ins per Unit per Yr

$3,225$3,225

10 Yrs

Yes

Property Tax Information

Net Rentable Area

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 responsibility 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.

22.71%

$0

63,000

$0

$0$300

25.51%

$3,600$0

147,000

8,169

$600 per Unit

210,000210,00011.54%

14,334

22,47415,834

3,900

1,500

14,305

10.70%

8,169

Physical Occ (Mar-20)2,7000.15Land Area (Acres) $22,474

1973

Indiv

Units per Acre

Elec MeterRoof Style

Proposed Loan Parameters

$35,000

A/C Type: HVAC-Indiv

Physical Information

Number of Units

$77.78

New Loan @ 70% of Asking

40.214

Avg Unit Size

Financial Information

6450

$147,000$210,000

1,050

(1,219)1,500 $250 / Unit / Yr

Estimated Fixed Expenses

Estimated Expenses

(2,844)

$2,754

PRO-FORMA

40,635

38,309

Est Future Tax Assessment

4/21/2020 HatfieldBeaumont

PROPERTY OVERVIEW

HATFIELD 615 ADAMS STREET BEAUMONT, TX 77705 Keymap: Construction Quality: C

Age: 1973 Cable Ready Park & Ride Nearby Mortgage BalanceElec Meter: Indiv Mini Blinds Walk-In Closets Amortization Beaumont ISD $1.224050A/C Type: HVAC-Indiv Ceiling Fans School Bus Pick-up P & I City of Beaumont $0.710000Water: RUBS Shuttle Route Type Port of Beaumont $0.114674Plumbing: Copper? Patios/Balconies Assumable Sabine Neches Nav Dist $0.092067Roof: Pitched Monthly Escrow Drainage Dist #6 $0.220587Paving: Concrete Origination Date Jefferson County $0.364977Materials: Brick/Wood Due Date# of Stories: 2 Interest RateParking: OpenBuildings: 2 Yield Maintenance 2019 Tax Rate/$100 $2.726355Units/Acre: 40.21 Transfer Fee 2019 Tax Assessment $101,030

*In Select Units

Est Avg Mo 38,700$

Jan 2020 3,225$ 12 Mo Avg 3,225$ Feb 2020 3,225$ Mar 2020 3,225$ Apr 2020 3,225$ 9 Mo Avg 3,225$ May 2020 3,225$ June 2020 3,225$ July 2020 3,225$ 6 Mo Avg 3,225$ Aug 2020 3,225$ Sept 2020 3,225$ Oct 2020 3,225$ 3 Mo Avg 3,225$ Nov 2020 3,225$ Dec 2020 3,225$

ACCT NO: 43013AMENITIESPROPERTY INFORMATION TAXING AUTHORITY - JEFFERSON COUNTYEXISTING MORTGAGE

COLLECTIONS

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

PROPERTY HIGHLIGHTS

$-

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

The Hatfield Apartments, is a two story, garden-style, brick apartment community located in Beaumont, Texas. The asset was built in 1973. Resident amenities include: mini-blinds, kitchen pantries, ceiling fans, patios and balconies.

Capital Expenditures include: $6000 on the fence, $4000 refreshing outside, $5000 cutting trees around the property and $6,000 on interior upgrades.

Currently there are no reported leasing concessions. Blue collar profile, ideal for a small investor to own!

IMPORTANT: Seller desires to sell to an ALL CASH buyer!

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, KETEnterprises 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 legaland 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 concerningenvironmental issues, if any.

HATFIELD 615 ADAMS STREET BEAUMONT, TX 77705 Unit Mix

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

1 Bed/1 Bath 1 450 450 $325 $325 $0.721 Bed/1 Bath 1 450 450 $450 $450 $1.001 Bed/1 Bath 1 450 450 $625 $625 $1.391 Bed/1 Bath 1 450 450 $650 $650 $1.441 Bed/1 Bath 1 450 450 $625 $625 $1.391 Bed/1 Bath 1 450 450 $550 $550 $1.22

6 450 2,700 $538 $3,225 $1.19

F

Source: Owner's 4-20 Rent Roll

UNIT MIX

TOTALS AND AVERAGES Total UnitsAverage Sq. Ft.

Total Sq. Feet

Average Rent/Unit Total Rent Average Rent/ SF

AB

C-All Bill PaidD-All Bill PaidE-All Bill Paid

HATFIELD 615 ADAMS STREET BEAUMONT, TX 77705

PROPERTY LOCATION

HATFIELD 615 ADAMS STREET BEAUMONT, TX 77705

RENT COMPARABLESHATFIELD 615 ADAMS STREET BEAUMONT, TX 77705

1 Natalie Apartments 3755 Natalie

2 Beaupart3580 S MLK Jr Pkwy

3 University Drive Apartments755 E Florida Ave

4 Cardinal Oak Apartments1280 Saxe St

5 The Edge5230 S MLK Jr Pky

Totals/Averages Comps 1985 92 555 $744 $1.340Hatfield

615 Adams

RENT COMPARABLES

1.410

1978 72 757 $600 0.793

1985 120 465 $656

P/SF

1.027

2006 96 306 $526 1.719

1983

$1.194

152 835 $858

1973 100% 6 450 $538 EWG

1975 20 414 $725 1.752

Property Name Yr Blt #Units Avg Size Avg Rent

3

21

4

5

The economy of Beaumont-Port Arthur, TX Metro Area employs 173,900 people. The economy of Beaumont-Port Arthur, TX Metro Area isspecialized in Mining, Quarrying, Oil, Gas Extraction; Construction; and Utilities, which employs respectively 2.89; 1.82; and 1.46 times morepeople than what would be expected in a location of this size.

The largest industries in Beaumont-Port Arthur, TX Metro Area are Healthcare & Social Assistance (21,151), Manufacturing (20,933), and Retailtrade (20,415), and the highest paying industries are Management of Companies & Enterprises ($74,911), Utilities ($53,155), and Mining,Quarrying, Oil, Gas Extraction ($51,230).

Median household income in Beaumont-Port Arthur, TX Metro Area is $49,364.

The Beaumont-Port Arthur, TX Metro Area has a population of 409,901 people with a median age of 36.7 and a median household incomeof $49,364.

Between 2015 and 2016 the population of Beaumont-Port Arthur, TX Metro Area grew from 408,216 to 409,901, a 0.41% increase and its medianhousehold income declined from $49,787 to $49,364, a 0.85% decrease.

The population of Beaumont-Port Arthur, TX Metro Area is 56.9% White, 24.3% Black, and 14.8% Hispanic. 15.6% of the people in Beaumont-PortArthur, TX Metro Area speak a non-English language, and 94.4%are U.S. citizens.The largest universities in Beaumont-Port Arthur, TX Metro Area are Lamar University, with 3,775graduates, Lamar State College-Port Arthur,with 641graduates, and Lamar State College-Orange, with 530 graduates.

The median property value in Beaumont-Port Arthur, TX Metro Area is $107,800, and the homeownership rate is 65.6%.Most people in Beaumont-Port Arthur, TX Metro Area commute by Drove Alone, and the average commute time is 22.4 minutes. The averagecar ownership in Beaumont-Port Arthur, TX Metro Area is 2 cars per household.

Beaumont-Port Arthur, TX Metro Area is a metropolitan statistical area containing Jefferson County, TX; Orange County,TX; and Hardin County,TX and the census places Beaumont, TX; Port Arthur, TX; and Orange, TX.

BEAUMONT-PORT ARTHUR, TX METRO AREA

HATFIELD 615 ADAMS STREET BEAUMONT, TX 77705

DEMOGRAPHICS

1 Mile Radius 2 Mile Radius 3 Mile Radius

2019 Estimated Population 10,634 23,022 30,5382024 Projected Population 10,552 23,128 30,5062010 Census Population 10,883 23,789 30,8652000 Census Population 10,805 25,200 32,657

Projected Annual Growth 2019 to 2024 -0.2% - -Historical Annual Growth 2000 to 2019 - -0.5% -0.3%

2019 Median Age 28.7 32.6 33.7

2019 Estimated Households 3,497 8,179 11,1062024 Projected Households 3,594 8,524 11,5042010 Census Households 3,425 8,089 10,7842000 Census Households 3,774 9,048 11,689

Projected Annual Growth 2019 to 2024 0.6% 0.8% 0.7%Historical Annual Growth 2000 to 2019 -0.4% -0.5% -0.3%

2019 Estimated White 19.0% 16.4% 17.5%2019 Estimated Black or African American 58.7% 62.4% 62.0%2019 Estimated Asian or Pacific Islander 6.2% 4.6% 3.7%2019 Estimated American Indian or Native Alaskan 1.3% 0.9% 0.9%2019 Estimated Other Races 14.7% 15.8% 15.9%

2019 Estimated Hispanic 21.7% 23.3% 23.8%

2019 Estimated Average Household Income $40,184 $41,622 $41,7022019 Estimated Median Household Income $35,110 $35,348 $34,2352019 Estimated Per Capita Income $13,892 $15,198 $15,652

2019 Estimated Elementary (Grade Level 0 to 8) 9.2% 11.0% 10.4%2019 Estimated Some High School (Grade Level 9 to 11) 11.6% 12.4% 12.3%2019 Estimated High School Graduate 36.5% 36.1% 36.0%2019 Estimated Some College 22.1% 23.4% 23.8%2019 Estimated Associates Degree Only 7.4% 6.2% 6.2%2019 Estimated Bachelors Degree Only 6.0% 6.0% 6.6%2019 Estimated Graduate Degree 7.2% 4.9% 4.6%

2019 Estimated Total Businesses 174 489 1,8572019 Estimated Total Employees 4,549 7,922 27,8762019 Estimated Employee Population per Business 26.2 16.2 15.02019 Estimated Residential Population per Business 61.3 47.1 16.4

INC

OM

EED

UC

ATI

ON

(AG

E 25

+)B

USI

NES

SH

OU

SEH

OLD

S R

AC

E A

ND

ETH

NIC

ITY

POPU

LATI

ON

15%

46%5%

12%

22%

White  Black  Asian Other Hispanic

$40,184

$91,524

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

$90,000

$100,000

Subject Houston

78.3%

21.7%Non‐Hispanic

Hispanic

HATFIELD 615 ADAMS STREET BEAUMONT, TX 77705

HATFIELD 615 ADAMS STREET BEAUMONT, TX 77705

A 268 UNIT CLASS "B-/C+" GARDEN APARTMENT COMMUNITY