O’Connor & Associates

O’Connor & Associates

Market Demand Study

Prepared by O’Connor & Associates 2200 North Loop West, #200

Houston, Texas 77018

www.poconnor.com

Subject Property

proposed S. Oklahoma Drive Apartments Subject Property Location

TBD S. Oklahoma Drive Celina, Collin County, Texas 75009

2021-0729401

Prepared for

Mr. Richard Henson S. Broadway

Development LLC

Effective Date of Report

August 20, 2021

Patrick O’ Connor & Associates, L.P. dba Patrick C. O’Connor, MAI, President Ross P. Welshimer, MAI John R. Fisher, LEED AP

August 26, 2021 Mr. Richard Henson S. Broadway Development LLC 18333 Preston Road, Suite 500 Dallas, TX 75252 Reference: Apartment Market Demand Study for the proposed S. Oklahoma Drive

Apartments. The subject site is located on the west line of S. Oklahoma Drive, north of E. Cherrywood Lane, in Celina, Collin County, Texas 75009 75009.

Dear Mr. Henson: At your request, we have completed a market demand study for the purpose of providing a market analysis for the above-referenced property. The effective date of the study is August 20, 2021. The date of the report is August 26, 2021. The date of the visit to the subject property is August 20, 2021. The analyses provided herein are subject to the assumptions and contingent and limiting conditions contained within both the body of this report and the addenda section. Based on supply and demand characteristics of the subject’s Primary Market Area (PMA), as reflected by current occupancy rates, rental rates, absorption, and projected population and job growth, there is sufficient demand to construct the subject project as of August 20, 2021. We are not qualified to detect or identify hazardous substances which may, or may not, be present on, in, or near this property. The presence of hazardous materials may negatively affect feasibility. We have analyzed the subject property as though free of hazardous materials. We urge the user of this report to obtain the services of specialists for the purpose of conducting an environmental audit to ensure that the subject property is free of hazardous materials. 2200 North Loop West, Suite 200 Houston, Texas 77018 713-686-9955 FAX 713-686-8336 www.poconnor.com

Mr. Richard Henson S. Broadway Development LLC Page 2 We certify that we have no interest, present or proposed, in the subject property, that the conclusion contained herein has been reached after a careful study, investigation, analysis, and interpretation of the pertinent data, and that our fee is in no way contingent upon the conclusion. We are neither part of the development team, owner of the subject property, nor affiliated with any member of the development team engaged in the development of the property. This market study is prepared subject to our current assumptions and limiting conditions. Your attention is directed to the following report and accompanying data, which form, in part, the basis of our conclusions. Respectfully submitted, PATRICK O’CONNOR & ASSOCIATES, LP d.b.a. O'CONNOR & ASSOCIATES

Ross P. Welshimer, MAI TX-1324328-G State Certified General Real Estate Appraiser

2021-0729401 O’Connor & Associates Page 4

TABLE OF CONTENTS

TABLE OF CONTENTS ............................................................................................................................................ 4

CERTIFICATION OF APPRAISAL ASSIGNMENT ............................................................................................. 5

ASSUMPTIONS AND LIMITING CONDITIONS ................................................................................................. 6

ENVIRONMENTAL ASSUMPTIONS ..................................................................................................................... 9

EXECUTIVE SUMMARY OF SALIENT FACTS AND CONCLUSIONS ......................................................... 11

DEFINITIONS ........................................................................................................................................................... 16

USE OF THE ASSIGNMENT .................................................................................................................................. 16

DEVELOPMENT AND REPORTING PROCESS OF THE ASSIGNMENT .................................................... 16

EFFECTIVE DATE OF THE ASSIGNMENT ....................................................................................................... 16

DATE OF THE REPORT......................................................................................................................................... 16

DALLAS / FORT WORTH AREA DATA .............................................................................................................. 25

IDENTIFICATION OF IMPROVEMENTS .......................................................................................................... 44

DENSITY ................................................................................................................................................................... 46

CONCLUSIONS ........................................................................................................................................................ 47

ECONOMIC VIABILITY ........................................................................................................................................ 70

RENT COMPARABLES .......................................................................................................................................... 72

PRIMARY MARKET AREA SUPPLY AND DEMAND ANALYSIS ................................................................. 77

EVALUATION OF SUBJECT PROPERTY .......................................................................................................... 91


CERTIFICATION OF APPRAISAL ASSIGNMENT We certify that, to the best of our knowledge and belief,... (1) The statements of fact contained in the report are true and correct. (2) The reported analyses, opinions and conclusions are limited only by the reported assumptions and

limiting conditions, and are our personal, impartial and unbiased professional analyses, opinions and conclusions.

(3) We have no present or prospective interest in the property that is the subject of this consulting report, and we have no personal interest or bias with respect to the parties involved.

(4) We have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment.

(5) Our compensation for completing this assignment is not contingent on an action or event resulting from the analyses, opinions, or conclusions in, or use of, this report, or upon developing or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. Our engagement in this assignment is not contingent upon developing or reporting predetermined results.

(6) Our analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice.

(7) Ross P. Welshimer, MAI viewed the subject property and the comparables. (8) No one provided significant real property appraisal assistance to the persons signing this report. (9) This assignment was not based on a requested minimum value, a specific valuation, or the

approval of a loan. (10) Ross P. Welshimer, MAI has performed no services as an appraiser or any other capacity

regarding the property that is the subject of the report within the three-year period immediately preceding acceptance of this assignment.

The following additional certifications relate to the MAI designation of Ross P. Welshimer. (11) The reported analysis, opinions and conclusions were developed, and this report has been

prepared, in conformity with the requirements of the Code of Professional Ethics & Standards of Professional Practice of the Appraisal Institute.

(12) Ross P. Welshimer, MAI is a designated Member of the Appraisal Institute and has completed the continuing education program of the Appraisal Institute.

(13) The use of this report is subject to the requirements of the Appraisal Institute relating to review by their duly authorized representatives.

Ross P. Welshimer, MAI TX-1324328-G State Certified General Real Estate Appraiser


ASSUMPTIONS AND LIMITING CONDITIONS

This report is subject to the following assumptions and limiting conditions: 1) No survey of the subject property was undertaken and the appraiser(s) assume no

responsibility associated with such matters. 2) The report conclusion is based on responsible ownership and competent management.

The subject property is assumed to be free and clear of all liens, except as may be otherwise herein described. No responsibility is assumed by the appraiser(s) for matters legal in character, nor is any opinion on the title rendered, which is assumed to be good and marketable.

3) The information contained herein has been gathered from sources deemed to be reliable,

but the appraiser(s) assume no responsibility for its accuracy. Correctness of estimates, opinions, dimensions, sketches and other exhibits which have been furnished and have been used in this report are not guaranteed.

4) The report conclusion rendered herein is considered reliable and valid only as of the date

of the appraisal, due to rapid changes in the external factors that can significantly affect the property value.

5) Any leases, agreements or other written or verbal representations and/or communications

and information received by the appraiser(s) have been reasonably relied upon in good faith but have not been analyzed for their legal implications. We urge and caution the user of this report to obtain legal counsel of his/her own choice to review the legal and factual matters, and to verify and analyze the underlying facts and merits of any investment decision in a reasonably prudent manner.

6) Appraiser(s) assume no responsibility for any hidden agreements known as "side letters,"

which may or may not exist relative to this property, which have not been made known to us, unless specifically acknowledged within this report.

7) This report is to be used in whole, and not in part. Any separate valuation for land and

improvements shall not be used in conjunction with any other appraisal and is invalid if so used. Possession of this report or any copy thereof does not carry with it the right of publication nor may the same be used for any purpose by anyone but the client without the previous written consent of the appraiser(s), and in any event, only in its entirety.


Assumptions and Limiting Conditions - Continued 8) The appraiser(s), by reason of this report, are not required to give testimony in court with

reference to the property appraised unless notice and proper arrangements have been previously made therefore.

9) Neither all nor any part of the contents of this report shall be conveyed to the public

through advertising, public relations, news, sales or other media without prior written consent and approval of the author.

10) No subsoil data or analysis based on engineering core borings or other tests were

furnished to us. We have assumed that there are no subsoil defects present that would impair development of the land to its maximum permitted use, or would render it more or less valuable. No responsibility is assumed for engineering which might be required to discover such factors.

11) The construction and physical condition of the improvements described herein are based

on a physical site visit as well as written information provided by the client. No liability is assumed by the appraiser(s) for the soundness of structural members since no engineering tests were conducted. No liability is assumed for the condition or adequacy of mechanical equipment, plumbing or electrical components. No responsibility is assumed for engineering which might be required to discover such factors. We urge the user of this report to retain an expert in this field.

12) Unless otherwise stated in this report, the existence of hazardous substances, including

without limitation asbestos, polychlorinated byphenyls, petroleum leakage, or agricultural chemicals, which may or may not be present in or on the property, or other environmental conditions were not called to the attention of the appraiser(s) nor did the appraiser(s) become aware of such during the appraiser(s) site visit. The appraiser(s) have no knowledge of the existence of such materials on or in the property unless otherwise stated. The appraiser(s), however, are not qualified to test such substances or conditions. If the presence of such substances as asbestos, urea formaldehyde, foam insulation or other hazardous substance or environmental conditions may affect the value of the property, the conclusion is predicated on the assumption that there is no such condition on or in the property or in such proximity thereto as to cause a loss in value. No responsibility is assumed for any such conditions, nor for any expertise or engineering knowledge required to detect or discover them. We urge the user of this report to retain an expert in the field of environmental impacts on real estate if so desired.


Assumptions and Limiting Conditions - Continued 13) The projections of income, expenses, terminal values or future sales prices are not

predictions of the future, rather, they are the best estimate of current market thinking of what future trends will be. No warranty or representation is made that these projections will materialize. The real estate market is constantly changing. It is not the task of the appraiser(s) to estimate the conditions of a future real estate market, but rather to reflect what the investment community envisions for the future, and upon what assumptions of the future investment decisions are based.

14) The client or user of this report agrees to notify the appraiser(s) of any error, omission or

inaccurate data contained in the report within 15 days of receipt, and return the report and all copies thereof to the appraiser(s) for correction prior to any use.

15) The acceptance of this report, and its subsequent use by the client or any other party in any

manner whatsoever for any purpose, is acknowledgment by the user that the report has been read and understood, and specifically agrees that the data and analyses, to their knowledge, are correct and acceptable.

16) The assignment was not based upon a requested minimum valuation, a specific valuation,

or the approval of a loan. 17) We have not made a specific compliance survey to determine if the subject property is in

compliance with the American Disabilities Act (ADA). It is possible that compliance survey of the subject property, together with a detailed analysis of the requirements of the ADA could reveal that the subject property is not in compliance with the Act. If so, this could have a negative effect upon the value of the subject property. Since we do not have any direct evidence relating to this issue, we did not consider possible noncompliance with the requirements of the ADA in considering the demand characteristics.

18) If this appraisal includes a prospective value as of a prospective date, the value conclusion

is contingent upon the assumption that market conditions do not unexpectedly change from the date of the report to the prospective date of value.


ENVIRONMENTAL ASSUMPTIONS This report is subject to the following environmental assumptions: 1) There is a safe, lead-free, adequate supply of drinking water. 2) The subject property is free of soil contamination. 3) There is no uncontained friable asbestos or other hazardous asbestos material on the

property. 4) There are no uncontained PCB's on or near the property. 5) The radon level is at or below EPA recommended levels. 6) Any functioning underground storage tanks (UST's) are not leaking and are properly

registered; any abandoned UST's are free from contamination and were properly drained, filled and sealed.

7) There are no hazardous waste sites on or near the subject property that negatively affect

the value and/or safety of the property. 8) There is no significant urea formaldehyde (UFFI) insulation or other urea formaldehyde

material on the property. 9) There is no flaking or peeling of lead-based paint on the property. 10) The property is free of air pollution. 11) There are no wetlands/flood plains on the property (unless otherwise indicated in the

report). 12) There are no other miscellaneous hazardous substances and/or detrimental environmental

conditions on or in the area of the site (excess noise, radiation, light pollution, magnetic radiation, acid mine drainage, agricultural pollution, waste heat, miscellaneous chemical, infectious medical wastes, pesticides, herbicides, and the like).


1. SUMMARY AND CONCLUSIONS


PROPOSED S. OKLAHOMA DRIVE APARTMENTS

EXECUTIVE SUMMARY OF SALIENT FACTS AND CONCLUSIONS

(A) Disclosure of Competency: O’Connor & Associates is a professional real estate

appraisal and consulting firm, providing service to a variety of corporate, institutional, governmental, and private clientele. In the past 12 months, O’Connor & Associates has completed numerous assignments involving similar properties. Ross P. Welshimer, MAI is a State Certified General Real Estate Appraiser by the Texas Appraiser Licensing and Certification Board, and has prepared numerous market studies and appraisal assignments of properties similar to this assignment.

(B) Identification of Property: The subject site is located on the west line of S. Oklahoma Drive, north of E. Cherrywood Lane, in Celina, Collin County, Texas 75009. The subject site contains ±14.8737 acres (±647,898 square feet) and appears to be flat in topography. The subject site is proposed to be improved with a Phase I of 183 revenue units of market-rate apartments. A second phase containing 120 additional units is planned if Phase I proves successful. The subject site is well suited for multifamily development. The immediate surrounding development is a mix of vacant land and single- and multifamily residential uses.

(C) Primary Market Area (PMA): Based on our research and interviews with existing property managers and leasing agents, as well as multifamily experts, a significant portion of the tenants for multifamily housing in the immediate area are driven by a desire to be within high-quality school districts, near their place of work, and near amenities such as shopping and restaurants. The location of the subject is in northwest Collin County, with easy access to the major employment centers within the Greater Dallas / Fort Worth area via Interstate Highways 35E, the Dallas North Tollway, and U. S. Highway 75. The subject’s PMA is therefore reasonably defined as that area generally east of U. S. 377, Little Elm Creek, and Lake Lewisville, west of U. S. Highway 75, Franklin Branch, and Lake Forest Drive, north of State Route 121, and south of the Collin County line. This area includes Census Tracts 48085-030202; 48085-030301; 48085-030302; 48085-030303; 48085-030304; 48085-030305; 48085-030403; 48085-030404; 48085-030405; 48085-030406; 48085-030407; 48085-030408; 48085-030504; 48085-030505; 48085-030506; 48085-030507; 48085-030508; 48085-030509; 48085-030510; 48085-030511; 48085-030512; 48085-030513; 48085-030515; 48085-030516; 48085-030517; 48085-030518; 48085-030519; 48085-030520; 48085-030521; 48085-030522; 48085-030523; 48085-030524; 48085-030525; 48085-030526; 48085-030527; 48085-030529; 48085-030530; 48085-030531; 48121-020104; 48121-020105; 48121-020108; 48121-020109; 48121-020110; 48121-020111; 48121-020112; 48121-020113; 48121-020114; 48121-020115; 48121-021515; 48121-021516; 48121-021517; 48121-021518; 48121-021519; 48121-021520; 48121-021521; 48121-021522; 48121-021523; 48121-021524; 48121-021525; 48121-021526; 48121-021527; 48121-021800; 48121-021900.

(D) According to surveys conducted by Realpage Apartment Market Report for Dallas/Fort Worth (2Q 2021), the subject is within the Frisco submarket. The respective overall average rents and vacancies for the submarket are $1,455 per month, $1.497 PSF, and


3.7%. The average vacancy rate for the DFW Metro area was reported at 5.1%, with overall average rents of $1,275 per month and $1.448 PSF. Rental rates in the Frisco market area have remained strong over the past few years, with average annual increases of 1.5% over the past five years.

(E) Comparable Properties: The selected market-rate comparable apartments surveyed in the immediate area of the subject in order to determine a market rent for the subject generally exhibited strong occupancy rates, with an average occupancy level of 93.78% and an average rental rate of ±$1.77 per square foot per month and $1,963 per month. These projects contain a total of 3,134 units.

(F) Demand: The PMA has an estimated 2021 population of 477,306 and is forecasted to grow by 1.98% annually to 524,643 by 2026. The PMA for the subject property has an estimated 157,834 households in 2021 and is forecasted to grow by 1.87% annually to 172,558 households by 2026. Approximately 21.56% of these families are renter households in 2021. The population growth in the PMA between 2000 and 2010 was 211.00%.

(G) Evaluation of Subject Property: The subject property Phase I is proposed to have 40.98% one-bedroom units, 56.83% two-bedroom units, and 2.19% three-bedroom units. Based on discussions with leasing agents and our own analysis of the selected comparables in the PMA, the unit mix appears generally balanced for a market project with 1-, 2-, and 3-bedroom units, although potentially high on 2-bedroom units and low on 3-bedroom units. The selected comparables had a range of 1-bedroom units from 26.19% to 69.28% (average of 40.70%); 2-bedrooms ranged from 25.13% to 51.63% (average of 42.46%); and 3-bedrooms ranged from 2.50% to 21.90% (average of 12.45%).

Development of the project is the maximally productive use of the site and we consider it to be an acceptable location for this development. Based on supply and demand characteristics of the subject’s Primary Market Area (PMA), as reflected by current occupancy rates, rental rates, absorption, and projected population growth, there is sufficient demand to construct the subject project as of August 20, 2021.

(H) Rental Rates: The unadjusted average of the reported rents for the conventional market-rate comparables utilized in our analysis is ±$1.77 per square foot. The developer’s projected market rents for Phase I, averaging ±$1.62 per square foot, appears at the lower end of the range.

(I) Need for Rental Housing: Population and job growth have been strong in the subject area over the last five years, with projections of continued growth in both sectors. Occupancies of competing properties have remained high, showing that supply and demand are in balance. Therefore, the subject property need only achieve moderate penetration to lease to stabilized occupancy. This is a realistic scenario considering the current and proposed supply of quality rental housing in the subject’s PMA compared to expected growth.


(J) Capture Rate: Capture Rate is defined as the percentage of households in the PMA that meet any applicable age and household size restrictions and are within any income eligible band and who have sufficient minimum income to pay the market rent without being rent overburdened, who the property must capture to fill the units and achieve stabilized occupancy. The Capture Rate is calculated by dividing the total number of units at the property by the total number of households that meet the applicable age, size and any income band requirements. The absorption rate is defined as a projection of the pace of unit lease up as units become available for occupancy.

Therefore, only the subject’s units are included in the capture calculations. Therefore, a total of 170 un-stabilized units (93% of 183 total units) are included in the capture. There are approximately 34,603 potential households based on income eligibility, housing preference, and taking into consideration the typical turnover rate in the subject’s housing market area.

Number of Existing Households in PMA 157,834

% of Renter Households 21.56%

% of Income-Qualified Households 89.89%

Estimated Current Income, Renter Qualified HH 30,589

Projected Income, Renter Qualified HH demand (3 yrs) 4,014Total Current/Projected Income/Renter Qualified HH 34,603# Subject Units (Stabilized) 170

Capture Rate 0.49%

CAPTURE RATE CALCULATION

(K) Penetration Rate: The penetration rate is defined as the percentage of age and income qualified households required to achieve stabilized occupancy at all existing and proposed projects. The existing competitive units in the PMA figure is based on the YOC 2009 or newer multifamily residential units. This figure, plus the subject proposed units, is the approximate existing/new units in the PMA. Based on our research, the following table shows the recently-completed, under-construction, and proposed apartment properties in the PMA.


Status Project Total Units

Occupancy / Pre-leased

Unstabilized Units

U/C (Est Comp 5/22) One Preston Station, S. Oklahoma Dr., Celina 240 0.00% 240

U/C (Est. Comp. 2/23) Artesia I, S. Teel Pkwy & Prosper Rd., Prosper 200 0.00% 186

U/C (Est. Comp. 1/23) Avilla Grove, 1010 Preston Rd., Celina 200 0.00% 186

U/C (Est. Comp. 11/21) Avilla Parkway, 3420 S. Dallas Pkwy, Celina 108 79.63% 14

U/C (Est. Comp. 12/21) Botanic at Stonebriar, 3030 Ohio Dr., Frisco 289 4.84% 255

U/C (Est. Comp. 12/22) Jefferson at the Grove, 16220 Phoebe Rd., Frisco 424 0.00% 394

U/C (Est. Comp. 11/22) Liv Bluewood, Choate Pkwy & Kinship Pkwy, Celina 272 0.00% 253

U/C (Est. Comp. 6/22) Mezzo, 703 FM 1385, Aubrey 378 0.00% 352

U/C (Est. Comp. 11/22) Modera Frisco Square, 5995 Gordon St., Frisco 360 0.00% 335

U/C (Est. Comp. 3/23) Satori Frisco III, 12330 Research Rd., Frisco 353 0.00% 328

U/C (Est. Comp. 11/21) Cadence at Frisco Station, 4160 Gridiron Rd., Frisco 322 30.00% 203

U/C (Est. Comp. 4/23) The District at Little Elm, 100 Main St., Little Elm 324 0.00% 301

U/C (Est. Comp. 5/22) Links on PGA Parkway, 15950 Paramount Way, Frisco 375 0.00% 349

U/C (Est. Comp. 4/23) Mansions of Oak Point, 579 Lloyds Rd., Little Elm 420 0.00% 391

U/C (Est. Comp. 12/21) The Margo, 4545 Mission Ave., Frisco 358 55.00% 136Proposed Subject 183 0.00% 170

Removals from Rental MarketNone Noted 0

4,093

SUMMARY OF PROPOSED, UNDER CONSTRUCTION, UN-STABILIZED, AND RECENTLY COMPLETED PMA PROJECTS

Net Proposed Additions/Removals from Market

The subject Phase I will contain 183 revenue units, with 170 units representing a stabilized occupancy. Therefore, a total of 4,093 new or proposed units will require absorption to a stabilized level, along with an estimated 17,674 existing rental units.

Approximate Existing Competitive Units in PMA (YOC 2009+) 17,674

Plus New Units in PMA + Subject 4,093

Approximate Existing/New Units in PMA 21,767

Total Current/Projected Income/Renter Qualified HH 34,603Approximate Existing/New Units in PMA 21,767

Penetration Rate 62.90%

PENETRATION RATE CALCULATION

(L) Absorption: According to published reports, occupancy levels in the Frisco and NW

Denton submarkets have been over or near 95% since fourth quarter 2016. Edison Frisco (257 units) opened in late 2018 and was stabilized within 12 months, for an average of 21 units per month. Satori Frisco, a 330-unit complex, opened in late 2018 and was stabilized in 12 months, for an average of 26 units per month. Landing at Little Elm, with 384 units, opened in June 2018 and leased 342 units in 17 months, for an average of 20 units per month. More recently, Gray Branch, a 300-unit complex, opened in June 2020 and leased 300 units in 10 months, for an average of 30 units per month. Vale Frisco, a 349-unit complex, opened in December 2020 and leased 324 units in 8 months, for an average of 41 units per month. The Travis, a 345-unit complex, opened in January 2021 and leased 345 units in 6 months, for an average of 58 units per month. For the


subject property, I am projecting an absorption rate of approximately 25-30 units per month. This absorption rate should apply to both phases, assuming the second phase is completed soon after Phase I

(M) Effect of Subject Property on Existing Apartment Market: Based on the high occupancy levels of the existing properties in the market, the supply of good quality housing, along with the recent strong absorption history, I project that the subject property will have minimal sustained negative impact upon the existing apartment market. Any negative impact from the subject property should be of reasonable scope and limited duration.

(N) Certification of Interest: The individual performing this study does not have any

interest or prospective interest in the development of the subject property.


DEFINITIONS The following applicable definitions are abstracted from The Appraisal of Real Estate, Fourteenth Edition, by The Appraisal Institute, and the Uniform Standards of Professional Appraisal Practice. Market Study: "A macroeconomic analysis that examines the general market conditions of supply, demand, and pricing or the demographics of demand for a specific area or property type." Feasibility Study: "In a feasibility study the appraiser develops an opinion of value for a proposed land use and tests the feasibility of that use by comparing costs and benefits." USE, DEVELOPMENT, ASSUMPTIONS Use of the Assignment The use of this assignment is understood to be for decision-making purposes of the client (Mr. Richard Henson with S. Broadway Development LLC). Development and Reporting Process of the Assignment This report has been prepared in compliance with the following: in accordance with the Uniform Standards of Professional Appraisal Practice (USPAP) Standards Rule 2-2(b) for a Restricted Appraisal Report and the Standards of Professional Appraisal Practice of the Appraisal Institute; and The Code of Professional Ethics of the Appraisal Institute. Although this report is classified as a restricted appraisal report due to the presentation of market rent, we have not determined market value for the subject property. Market data, including sales, expense, and lease information, was obtained from sources deemed to be reliable, including, but not limited to, on-site personnel. This report fully discusses all pertinent data, descriptions, and discussions germane to the subject of this report. A copy of this report and the data included herein has been retained in our files. Effective Date of the Assignment The descriptions, analyses, and conclusions of this report are applicable as of the effective date of August 20, 2021. The site was visited on August 20, 2021. Date of the Report The preparation of this report was completed on August 26, 2021.


Problem Definition The purpose of this assignment is to analyze the multifamily market in the subject property’s market area and:

1. Determine/support population and household growth going forward, while documenting recent growth trends.

2. Determine whether there is a current and projected population group to support development.

3. Support an appropriate unit mix based on market comps, with a focus on recent development and percentages of bedrooms.

4. Market penetration over the next several years, considering household growth and existing and proposed competition.

5. Determine current submarket rent levels and projected rent growth year/year for the next few years.

The population to be served is the population within the housing market area defined later in the report, due to the excellent access and mobility provided by the area’s roadway system. Highest and Best Use The highest and best use of the site as if vacant is for multifamily development. The highest and best use of the site as improved is the proposed multifamily development. Data Sources REIS and Realpage were the source for a significant amount of multifamily historical and current market data in the Dallas/Fort Worth area. Trends affecting the multifamily market are considered most representative of the subject property type; therefore, our analysis concentrates on the multifamily market. The market analyst verified all rental information for the comparable properties. Census data was obtained from The Nielsen Company, a recognized source of demographic data throughout the United States. Competency of the Appraiser Ross P. Welshimer is a Certified General Real Estate Appraiser by the State of Texas and has prepared market studies and appraisals for numerous properties similar to the subject. The appraiser has been active in the appraisal and consultation of apartment communities in Texas for at least the past ten years.


COVID-19 The World Health Organization declared the Coronavirus (COVID-19) a global pandemic on March 11, 2020, causing significant uncertainty in national and local markets. As of the effective date of this report, there is limited data to determine the magnitude or duration of the economic impact. Texas Economic Impact of COVID-19 (Based on data through July 24, 2021) The Texas Weekly Leading Index increased after decreasing the previous three weeks (Figures 1 and 2). The index has been gathering impetus and is pointing toward higher future economic activity as the reopening of the economy continues. Unfortunately, after months of declines in COVID-19 cases, the number of new cases has increased due to the number of people not yet vaccinated combined with the presence of the Delta variant that has shown to be more contagious. This has increased uncertainty surrounding the end of the pandemic. The index’s increase was mainly due to a decrease in the number of people filing for unemployment insurance. It was offset by a decrease in the number of new business applications. Even though the number of new business applications fell, the number remains high, signaling future business activity remains strong. Texas initial jobless claims decreased to 34,007 the week ending July 24 after increasing the previous three weeks. Also, continuing unemployment claims decreased to 177,902 the week ending July 10. The labor market continues to gradually recover as the transitions from unemployment to employment have likely been reduced by the effect of the pandemic on women, who were more likely than men to leave their jobs to take care of children because of in-person school and daycare closures. This outcome should be reverted once schools and daycares return to in-person learning and caregiving during the fall. Other possible factors affecting the transition from unemployment to employment could be the lingering pandemic, early retirement, and the possibility that people are taking more time to consider other career options. Record job openings suggest that while the economy is still short of pre-COVID employment levels, it is not due to insufficient labor demand. The outlook for the reopening and recovery of the state’s economy took somewhat of a hit as the number of new cases reverted their downward trend and have continued to increase the week ending July 24 (Figure 3). It is very important for vaccination rates to increase at a higher rate. This would continue to benefit consumer behavior, increasing business activity that would increase hiring and allowing people to return to the labor force. Currently, 53.0 percent of the states’ population 12 years and older is fully vaccinated based on the most current data (08/03/2021) from the Texas Department of State Health Services. In addition, a decrease in the real rate for the ten-year Treasury bill (which continues to exhibit a negative return in real terms) contributed to the increase in the weekly index. In contrast, a decrease in the real price of West Texas Intermediate (WTI) oil countered the increase in the weekly index.economy would lose around 13,000 jobs and would need to gain almost 490,000 jobs in the coming months to recuperate all the jobs lost between March and April of last year.


The rebound in Texas' economic activity could be hindered by possible upsurges in COVID-19 cases as economic and social activity increases. Further waves of infections can reverse increased mobility and spending, affecting the path to recovery.


The COVID-19 health crisis is unlike any crisis the economy has experienced before. The economy is currently going through a self-induced, sudden-stop to contain and stabilize the spread of the virus and save lives. The size of the economic shock will likely result in losses that overshadow losses from the 2008-09 financial crisis. The Texas economy is not immune to the pandemic. In fact, the state’s economy will be hit even harder than the world and the rest of the United States due to the simultaneous downturn in the oil industry. This crisis has created a need for up-to-date economic indicators that can help forecast economic changes. The Real Estate Center at Texas A&M University has constructed a high-frequency economic activity index for Texas that estimates the timing and length of future upswings and downturns on a weekly basis. New weekly data series (also called high-frequency data) and new methodologies to seasonally adjust the data on a weekly basis have allowed for the development of weekly coincident and leading economic indicators. The Center has a successful track record in estimating monthly residential and nonresidential construction leading indexes for Texas. Both indexes have proven


useful in signaling directional changes and forecasting key indicators like single family home sales, apartment vacancy rates, and commercial vacancy rates. However, the indexes do have some weaknesses. Underlying indicators are subject to revision, and while errors often cancel out across indicators, revisions impact the index and future monitoring of business cycles. In addition, although leading indicators often show the direction of a business cycle, they do not measure the magnitude of the change. Even with these caveats, leading indicators are useful for measuring business cycles. Seven variables were evaluated for this report. Four (business applications, high-propensity business applications, business applications with planned wages, and business applications from corporations) are business market variables that are tied to state business activity. One variable, weekly initial unemployment insurance claims, is tied to state employment. Another, West Texas Intermediate (WTI) real oil price deflated by the all-urban consumer price index, is related to the oil industry. The last variable, the real ten-year Treasury bill estimated using same-period inflation expectations, represents the cost of credit in the economy. Based on statistically reliable criteria, four variables were selected as economic activity leading indicators: business applications, initial unemployment insurance claims, real WTI oil price, and real ten-year Treasury bill. These variables demonstrated a significant leading relationship with Texas nonfarm employment. All other variables were found not to be statistically valuable or to perform below the business applications variable for the leading index. Detecting turning points in any leading index on a month-to-month basis is difficult, because not all downturn (upturn) movements point toward recessions (expansions). It’s even more difficult to do on a weekly basis. The Center has converted the weekly leading economic activity index into a monthly leading index to evaluate its predictive usefulness. Based on the National Bureau of Economic Research methodology, Texas nonfarm employment and the Dallas Federal Reserve Texas coincident indicator are used as references of peaks and troughs to measure the state’s business cycle (see table). This makes it possible to see if the weekly economic leading indicator can predict changes in Texas business cycles.


The Texas weekly leading index signaled a directional change in October 2007, 11 months before the prolonged downturn in employment that started in August 2008. Similarly, it signaled a recovery turning point in February 2009, 11 months before employment turned toward recovery in December 2009. In addition, it predicted turning points and duration of expansion and contraction more accurately than another institution’s leading indicator–the one produced by the St. Louis Federal Reserve (Figure 4).


According to the Federal Reserve Bank of Dallas, Texas employment grew an annualized 4.3 percent in June after upwardly revised growth of 4.4 percent in May (Chart 1). In the first half of 2021, employment rose 4.4 percent statewide. The Dallas Fed’s Texas Employment Forecast predicts 5.6 percent job growth this year (December/December), suggesting that all jobs lost in spring 2020 will be recovered by the end of the year. Across the nation, employment growth was robust. U.S. payrolls expanded 7.3 percent in June, boosting year-to-date growth to 4.6 percent.

Total Texas unemployment claims, including federal expanded benefits, ticked up the week ending June 26. Claims at the end of June were largely unchanged from their level a month prior, suggesting that the long-term decline seen in total claims slowed. However, in March, Gov. Greg Abbott declared an end to Texas’ participation in the federal expanded benefit programs (including pandemic unemployment assistance and pandemic emergency unemployment compensation), effective June 26. As Texans participating in these pandemic programs lose their unemployment benefits, it is likely the largely steady claims numbers will begin to decline again. The Texas unemployment rate inched down in June to 6.5 percent, its lowest level since the start of the COVID-19 pandemic in March 2020. The national unemployment rate ticked up in June from 5.8 to 5.9 percent. In June, the Texas Business Outlook Surveys headline indexes’ three-month moving average fell across all surveys. The smoothed retail index fell below zero for the first time since January 2021, indicating that on average more retail respondents in the second quarter reported contraction in sales than reported growth. Manufacturing and service-sector contacts continued to report net growth in production and revenue, respectively, though the level of the indexes has come down from the multiyear highs reached earlier this year. The three-month moving average of the future headline indexes for all three surveys—which sheds light on how businesses expect


production or revenue to change six months in the future—remained strong in June. This indicates continued optimism for growth among businesses across the state.


SUBJECT MARKET AREA The PMA has been defined as the central portion of Denton County because, from a tenant’s point of view, this area tends to exhibit generally similar characteristics, physical features, price desirability, and are affected by similar physical, economic, governmental, and social forces. It is likely that some tenants will be drawn from a larger area, including all of Denton County.

DALLAS / FORT WORTH AREA DATA Dallas, located in north-central Texas, is the third largest city in the state, trailing Houston and San Antonio in terms of population. The cities of Dallas and Fort Worth, some 30 miles to the west, and a number of suburban communities, serve to form the greater Dallas/Fort Worth metropolitan area, better known locally as the Metroplex. Considered the financial hub of the Southwest, Dallas’ growth has been spurred by high-tech companies, manufacturing and service industries.

The Dallas/Fort Worth CMSA is located approximately 300 miles north of the Gulf of Mexico and 50 miles south of Oklahoma. The Metroplex is centrally located within a five-state economic region, consisting of Texas, Oklahoma, New Mexico, Louisiana, and Arkansas. Dallas is the major hub city of the Dallas/Fort Worth Standard Metropolitan Statistical Area (SMSA), the fourth largest SMSA in the nation. This SMSA consists of thirteen contiguous counties, encompassing 9,286 square miles and includes Collin, Dallas, Denton, Ellis, Hood, Hunt Johnson, Kaufman, Parker, Rockwall, Somervell, Tarrant, and Wise Counties.


Dallas and Fort Worth have attracted a diverse mix of industries, resulting in great resiliency to economic recessions. In fact, Fortune magazine, in its annual ranking of the country’s hottest corporate locations, ranked Dallas as the top ranking city in the country. Milken Institute ranked Dallas as second in size and importance in high-tech economy, while Forbes magazine ranked Dallas as “A Top Business Location” in the country.

PKF states that there are more than 140,000 businesses in the Dallas area and more than 5,000 corporate headquarters. Dallas has 16 Fortune 500 companies, and 28 of the nation’s largest public firms have their headquarters in the Metroplex.

Dallas/Fort Worth has become a financial center for the Southwest and is the third largest in the nation. In addition to having 30 percent of the state’s finance, real estate, and insurance jobs located in the Metroplex, the area has evolved into the Southwest’s largest wholesale and trade center. The Eleventh District Federal Reserve Bank is located in Dallas.

Dallas also has the fourth largest concentration of insurance firms headquartered in the country and serves as the world headquarters of the US Army and Air Force Exchange Service. Surprisingly, “Big D” sitting in the middle of a vast plain, is the least densely populated metropolitan area in the world, and its cost of living is the second lowest in the list of Fortune magazine’s ten best cities for business.

The City of Dallas covers approximately 378.4 square miles, Dallas PMSA covers 6,186 square miles, and the Dallas/Fort Worth CMSA covers 9,286 square miles. Dallas has an altitude range of 382 to 750 feet. The temperature averages about 66 degrees for the year, and in July and August air conditioning reigns everywhere. The Dallas/Fort Worth CMSA is the largest metropolitan area in Texas and is the nation’s fifth largest metro area. The Dallas/Fort Worth CMSA is the fastest growing in the nation (combined).


Dallas-Fort Worth Area Employment

Dallas–Fort Worth’s economic recovery continued in June. Job growth was mixed, with payrolls contracting in the goods sector. The unemployment rate continued to decline, and the Dallas and Fort Worth business-cycle indexes expanded. Activity in the office market was still finding its footing, while industrial leasing remained remarkably strong. DFW employment growth strengthened in June, with payrolls increasing by 19,700 jobs (6.5 percent annualized) following an addition of 17,400 jobs in May. This brought payroll gains since April 2020 to a hefty 327,700—a recovery of over four-fifths of the jobs lost in the initial months of the pandemic. The unemployment rate dipped further in June to 5.4 percent in Dallas and 5.6 percent in Fort Worth. When the pandemic hit and shelter-in-place orders compelled many businesses to temporarily close their doors in early spring 2020, payrolls plunged nationally; however, the declines in Texas and DFW were less steep than in the U.S. Employment in DFW began recovering in May, though in January 2021, it remained 3.7 percent lower than prepandemic February levels; Texas was 4.5 percent below those levels in January, and the U.S. was 6.2 percent lower.

Payrolls in DFW expanded an annualized 4.4 percent (40,200 jobs) in the second quarter, an acceleration from the gains seen in the first quarter (Chart 2). Growth was mixed across sectors. Goods-sector employment contracted, with payrolls in manufacturing (0.7 percent, or 500 jobs) and construction and mining (7.2 percent, or 4,100 jobs) shrinking. On the services side, leisure and hospitality led growth (26.1 percent, or 20,300 jobs) and was followed by other services (14.4 percent, or 3,800 jobs) and professional and business services (6.8 percent, or 10,700 jobs).


The Dallas and Fort Worth business-cycle indexes—broad measures of economic activity—expanded in June, buoyed by recent job gains and unemployment rate declines. The indexes rose an annualized 12.3 percent in Dallas and 1.5 percent in Fort Worth in June, marking the 14th consecutive month of growth for both indexes and suggesting continued recovery in the DFW economy (Chart 3). Indexes remain down 0.2 percent in Dallas and 3.0 percent in Fort Worth from February 2020 levels.


DFW apartment absorption has ramped up this spring, pushing up occupancy and rents, according to ApartmentData.com. Absorption was exceptionally strong with a total of 10,399 units absorbed in April and May, up from 6,404 units in the first quarter. Average monthly rents in DFW ticked up to $1,242 per unit, up 7.0 percent year over year (Chart 5). Rent concessions were being offered mostly in Class A properties. Market-wide occupancy rose as well to 91.6 percent; however, it remained low in Class A and Class B properties that were in the lease-up phase.

Multifamily permit issuance, which leads apartment construction, dipped in May after holding steady in April and rising strongly in March. The three-month moving average rose, and through May, DFW multifamily permits are up 37.7 percent compared with the same period in 2020 (Chart 6). In 2020, DFW multifamily permits issuance was just over half that of 2019. By comparison, Texas multifamily permits fell 8.0 percent. DFW multifamily permit issuance moderated in 2020 due to the pandemic; however, construction in the metroplex has ramped up and is currently elevated at approximately 37,000 units. DFW remains the busiest market in apartment building among large U.S. metros.


Demand for office space in DFW remained weak in second quarter 2021 as tenants continued to reevaluate their space needs. Net absorption was negative for the sixth straight quarter at 358,00 square feet, pushing up the vacancy rate to a multiyear high of 24.6 percent, according to data from CBRE Research (Chart 4). This is the first time in recent history that the metro has seen six consecutive quarters of negative absorption. Availability of sublease space dipped to 8.9 million square feet or 13.7 percent of total available space (direct plus sublease). Class A properties accounted for two-thirds of the metro area’s sublease space. Business contacts expect leasing activity to gradually improve in the near term.


Leasing activity for industrial space strengthened in the second quarter, driven by demand from consumer goods, e-commerce and logistics firms, according to CBRE. Net absorption was a record 11.9 million square feet, bringing the first half of the year’s total to 22.2 million square feet (Chart 5). The vacancy rate fell from 5.4 percent to 4.6 percent, buoyed by persistent strong demand. The pandemic has boosted online sales growth, which has been a boon to distribution hubs such as DFW. Construction soared from 22.4 million square feet in the first quarter to 27.1 million square feet in the second, of which 31.9 percent was preleased.

Home Sales

DFW existing-home sales rose 1.2 percent in March and 2.8 percent in April following steep declines in February that resulted from the winter storm. Statewide, existing-home sales held steady at a high level in April (Chart 4). According to business contacts, new-home sales continue to be robust, though builders are struggling to keep up with demand and are limiting sales. Several are only building inventory homes and selling them at the drywall stage. Sales are being supported by record-low mortgage rates and increased demand for larger homes in less-dense areas. Total listings continued their downward trend in April, and existing-home inventories dipped to one month of supply.


Record home sales and tight inventories continue to boost prices. Home prices rose at their fastest monthly pace on record in March at 2.5 percent in DFW, according to the Case-Shiller House Price Index. U.S. prices similarly saw rapid increases of 1.5 percent in March. Year over year, prices were up 13.4 percent in Dallas and 13.2 percent in the U.S. (Chart 5). Moreover, the nominal median sales price reached an all-time high of $354,000 in Dallas and $292,000 in Fort Worth in April.


Conventions/Tourism

Dallas has become a major corporate training center for many Fortune 500 companies, due to its easy accessibility between the East and West Coasts, affordability, and numerous attractions. Convention activity in the City of Dallas has ranked the city among the top three convention/exposition centers in the United States. The abundance of luxury hotel rooms, many within walking distance of main attractions, is a major reason many conventions are held in Dallas. With the expansion of the Dallas Convention Center, the center became one of the ten largest in the country.

The Dallas Market Center, located on over 150 acres, is housed in eight complexes consisting of the World Trade Center, Apparel Mart, Me’s Mart, Decorative Center, Trade Mart, Furniture Mart, Market Hall, and Infomart. Dallas is one of the three principle fashion centers in the nation. The markets attract buyers from all over the U.S. and foreign countries.

Tourist attractions in and around Dallas include the State Fair of Texas, the IMAX Theater, the West End Historic District, Dallas Zoo, Old City Park, Southwestern Historical Wax Museum, Six Flags Over Texas, International Wildlife Park, Thanksgiving Square, John F. Kennedy Memorial, Owens Fine Arts Museum, Texas Sports Hall of Fame, and Hurricane Harbor (a water amusement park). Other venues include the Lone Star Class 1 horse racetrack and the Texas Motor Speedway.

The Metroplex area has several major professional sports franchises including the NFL’s Dallas Cowboys football team; NBA Dallas Mavericks basketball team; a Stanley Cup-winning hockey team, the Dallas Stars; and the American League Texas Rangers baseball team. Stadiums include the 80,000-seat Cowboys Stadium and the 72,000-seat Cotton Bowl Stadium. American Airlines Center, a 19,000 seat-multi-purpose activity center, is home of the Mavericks and Stars.

The Ballpark at Arlington, home of the Texas Rangers, is a four-level 49,000 seat structure, which was completed in 1995 at a cost of $191 million. The complex features two six-acre lakes with bordering retail and restaurant locations, an amphitheater, and adjoining park and recreation space. The Metroplex area also hosts the World Championship of Tennis Finals, Byron Nelson Golf Classic, and numerous other sporting events.

In the cultural district on the west side of downtown Fort Worth, there are three art museums as well as a museum of science and history. There is a planetarium and the art deco-designed Will Rogers Coliseum, which is home to the Southwestern Exposition and Stock Show, the nation’s oldest livestock and rodeo show. Located on the city’s north side is the historic Stockyards district, with its numerous saloons, western boutiques and restaurants.

Transportation

The Dallas/Fort Worth Airport, located directly between Dallas and Fort Worth, covers more than 17,000 acres and is the largest commercial airport in the U. S. in terms of land area. This airport is larger than Manhattan Island. You could also fit New York’s JFK, Chicago’s O’Hare, and Los Angeles’ LAX into it and still have room to spare.


Dallas/Fort Worth is the world’s third-busiest cargo airport and serves more than 60 million passengers a year (with a 76% increase in international passengers since 1993). A seven-year $2.5 billion capital improvement plan, financed by a bond issue, will make D/FW Airport even larger. Improvement projects underway include a new international terminal, an eighth runway, extension of three existing runways, and a people-mover system. The facility is currently undergoing a $2.7 billion expansion, including a new ±2 million square-foot international terminal, new high-speed trains connecting all terminals, and additional parking and runway improvements. The expansion is expected to generate over $34 billion in the local economy and create 77,000 new jobs in the next 15 years.

However, D/FW International is not the only airport in the area. Most business and private airplanes are served by three Dallas County airports: Love Field Municipal Airport near downtown Dallas; Addison Airport in northern Dallas County; and Red Bird Municipal Airport in Oak Cliff.

Fort Worth’s Alliance Airport has spurred more than $5 billion of public and private development in the north Tarrant County area. Alliance has helped to create more than 30,000 jobs for North Texas. Alliance has also become a significant site of economic activity with major corporations such as American Airlines, Burlington Northern-Santa Fe Railway, JC Penney, Nokia Mobile Phones, Nestlé’s, Federal Express, Maytag, CompUSA, and Zenith Electronics, all of which chose to be located near the airport.

In addition to the significant air facilities, the Metroplex also has a major rail hub, with six railroads offering freight service to the area, and Amtrak providing passenger service. Fifty-one truck firms have terminals in the area as well.

One of Dallas’ most attractive qualities is its highway system. Although it is no different from other major cities, experiencing traffic congestion at peak rush hours, the highway system is one of the best in the nation. The primary freeways feeding into the central city include Interstate Highway 35E, Interstate Highway 30, Interstate Highway 45, U.S. Highway 67, U.S. Highway 75, the Dallas North Tollway, and the President George Bush Tollway. Encircling the city are two loops consisting of Interstate Highway 635/Interstate Highway 20 and Loop 12.

Mass transit in the Dallas area is currently provided by Dallas Area Rapid Transit (DART). In 1990, DART approved a 67-mile light rail system throughout the Metroplex. The first eleven miles of the system opened in June of 1996. In 2002, another 20 miles opened, which provided service to Irving, D/FW Airport, and Richardson. Service to Plano began in the fourth quarter of 2002. The average daily ridership has increased from 18,900 per day in 1996 to 44,058 per day.

Education/Health Care

The Dallas Independent School District serves most of Dallas, with some 135 elementary, 25 middle schools, 34 high schools, and additional magnet or alternative schools. The City plans to build several new schools over the next few years. However, boundaries for some of the other school districts extend into the City of Dallas as well. There are approximately 16 independent school districts in Dallas County and even more in the greater metro area.


There are 80 accredited private and parochial schools within Dallas, as well as 26 four-year and 19 two-year colleges and universities within a 100-mile radius of the city. Among the 14 degree-granting institutions in the City of Dallas are Southern Methodist University, Dallas Baptist College, the University of Texas Health Science Center at Dallas and the Dallas County Community College System.

Tarrant County is served by several public school systems as well as several universities. Texas Christian University offers undergraduate and advanced degrees in art and sciences, business, education, fine arts, communications, and nursing. Texas Wesleyan University offers degree programs in business, education, fine arts, science and humanities. The Texas Wesleyan School of Law is the first full-scale institute in Tarrant County for advanced legal studies. The University of Texas at Arlington, Tarrant County Junior College also offers degrees. The Texas College of Osteopathic Medicine offers doctorates in osteopathy, and Southwestern Baptist Theological Seminary enrolls more than 4,500 students annually.

Within the Dallas PMSA are some 48 hospitals and two major medical education and research institutions. Dallas’ largest private general voluntary hospital in Texas and the second-largest in the nation is Baylor University Medical Center, east of downtown Dallas. Second in size is Parkland Memorial Hospital, a county-owned facility. Tarrant County residents can find a wide range of health care services, with the County health care workers challenging organ transplants, major trauma care, coronary surgery, cancer therapy, kidney dialysis and chemical dependency withdrawal. Cook-Fort Worth Children’s Medical Center is the largest independent pediatric treatment center in the nation.

Dallas-Plano-Irving will feel the effects of the crisis but will fare somewhat better than average because of its business service industries. Longer term, the concentration of corporate headquarters, technology businesses and financial services and above-average population growth will contribute to well above-average performance. According to Moody’s Economy.com, the MSA will recover faster than the nation through the year’s end, but it will lag the state’s robust pace of growth through the medium term. Healthcare, leisure/hospitality and construction will drive job gains and offset declines in government. Longer term, an upbeat demographic outlook suggests the MSA will outperform the U.S. with ease.

The outlook for the Dallas/Fort Worth Metroplex is projected to be optimistic.



PHYSICAL LOCATION ANALYSIS Location The subject site is located on the west line of S. Oklahoma Drive, north of E. Cherrywood Lane in Celina, Collin County, Texas 75009. The subject site is well suited for multifamily development, given the surrounding development. Site Description The subject site is an irregular-shaped tract of land containing ±14.8737 acres (±647,898 square feet) and appears to be basically flat in topography. The subject site appears to be currently vacant, with native trees and grasses. The subject site has frontage along the west line of S. Oklahoma Drive. Based on preliminary site plans, the improvements will only have access from S. Oklahoma Drive. These plans do show the proposed construction of Sunset Boulevard along the northern boundary of the subject. No access to this street is indicated. The western portion of the site has a creek extending from northeast to southwest. Based on InterFlood map panel 48085C0120J, published for Collin County and dated June 2, 2009, the eastern portion of the subject site appears to be located within Unshaded Zone X, an area determined to be outside the 100-year and 500-year flood plains. The far-western portion (essentially the western property border) appears to be located within Zone AE, an area within the 100-year flood plain. This determination was made by graphic plotting only, and accuracy is not guaranteed. Surrounding Land Uses Adjacent to the subject’s northern and western boundaries is vacant land. Doe Branch and a BNSF rail line are to the west, followed by vacant land. S. Oklahoma Drive is to the east, followed by scattered single-family residences. An under-construction apartment complex (One Preston Station with 240 proposed units) is adjacent to the south. Zoning According to on-line zoning maps, the subject site is currently zoned MF-2, Multifamily. Based on the allowable uses, it appears no zoning change would be needed to build apartments. Utilities/Public Services All public utilities are available to the subject site. We have assumed that sufficient utilities are available to the site to develop the site to its highest and best use. We have not independently verified these facts with the city. Nuisances There do not appear to be any nuisances adjacent to the subject property. No adverse easements or encroachments were noted, either on the subject or nearby properties. There exists a power-line easement extending along the southern portion of the development site; however, no improvements are to be located within the fall zone of the towers and the size of the site is adequate to create space between the power lines and the residential buildings. Accessibility The subject property has easy access to the area highway system, being located west of U. S. Highway 75 and east of Interstate Highway 35E. In addition, the Dallas North Tollway currently


ends southwest of the subject area at University Boulevard. Construction has already begun to extend this tollway north beyond Celina, further increasing the accessibility to the area. Streets At the subject site, S. Oklahoma Drive is a two-lane, two-way asphalt-paved, north / south primary roadway with open ditch drainage. Topography Based on our observation, the topography of the site appears to be generally level. Easements/Encroachments Based on our site visit and review of available maps, no easements or encroachments were noted which would be detrimental to development of the subject property. Soil and Sub-Soil Conditions No soil engineer's report was available to us and no recent soil tests are known to have been performed. Based on our observation of surrounding development in the immediate area and lack of further evidence to the contrary, we have assumed a stable soil condition that would ensure the structural integrity of any improvement which may be constructed. Our value conclusions could change should these assumptions prove incorrect. We caution and advise the user of this report to obtain engineering studies which may be required to ascertain any structural integrity. Environmental Conditions No Phase 1 Environmental Site Assessment was provided. Because we have no evidence to the contrary, we have assumed that the property is free of any material which would adversely affect the value, including, but not limited to, asbestos and toxic waste. Our value conclusions are subject to revision should these assumptions prove incorrect. We caution and advise the user of this report to obtain environmental studies which may be required to ascertain status of the property with regard to asbestos and other hazardous materials.


PHASING PLAN


ZONING MAP


PLAT MAP


FLOOD PLAIN MAP


LOCATION MAP


IDENTIFICATION OF IMPROVEMENTS

The subject site is located on the west line of S. Oklahoma Drive, north of E. Cherrywood Lane, Celina, Collin County, Texas 75009. The subject site is an irregular-shaped tract containing ±14.8737 acres (±647,898 square feet) and appears to have a basically flat topography. The site is vacant, and is proposed to be developed with a 183-unit market-rate apartment complex. Description of Subject Property The proposed improvements (Phase I) are reported to be a 183-unit (revenue units) market-rate property. Based on prevailing trends in the market, the subject should be separately-metered for electricity, water/sewer, and trash. The units are projected to be contained in 4-story apartment buildings which will likely have primarily stone veneer exterior walls, with brick veneer and fiber cement accents. The following table exhibits the unit mix for the proposed project, as supplied by the client.

No. Units SF % of Total Units16 587 8.74%

33 700 18.03%

22 765 12.02%

4 770 2.19%

86 1,013 46.99%

12 1,036 6.56%4 1,071 2.19%2 1,180 1.09%4 1,349 2.19%

183 Average Unit Size (SF) 896

SUBJECT UNIT MIX

Type

3 BR / 2 BA

1 BR / 1 BA

2 BR / 2 BA

2 BR / 2 BA

2 BR / 2 BA2 BR / 2 BA

0 BR / 1 BA

1 BR / 1 BA

1 BR / 1 BA

The following is a description of the various improvement construction components which should be present at the subject, based on a comparison to market competitors. Foundation: Reinforced concrete slab Building Type: 4-story elevator/walk-up buildings Exterior Walls: Wood frame with masonry veneer exterior walls Roofing: Pitched composition shingle roof Elevators: None Unit Finish: Partitions between units will be wood studs with painted sheetrock

panels. Floor coverings should be faux wood and ceramic tile


flooring. Ceilings should be textured sheetrock. Kitchen packages should include a refrigerator, oven/range, rangehood and fan, microwave, dishwasher, and a disposal.

Unit Configuration: Accommodation for each unit will comprise a living area, dining

room, kitchen, one, two, or three bedrooms with walk-in closets, and one or two bathrooms.

Unit Amenities: Units should feature washers and dryers, walk-in closets, kitchen

packages, ceiling fans with light kits, mini-blinds, and private patios/balconies.

Site Amenities: Site improvements should include a clubhouse with leasing office,

business center, game room, resort-style pool, fitness center, grill area, covered parking, and outdoor seating and recreation areas.

Fixtures: Plumbing and light fixtures will be assumed to be adequate for an

apartment complex in the subject area. Water Heaters: Hot water will be provided by individual electric heaters. Insulation: Adequacy not known; assumed adequate. Heating/Cooling: Individual HVAC units with individually controlled thermostats. Parking: It is assumed there will be an adequate amount of open and covered

parking spaces, per local code requirements. Landscaping: The landscaping is expected to be typical. Fence: The property will have perimeter fencing. Access Gates: The subject will have an access gate off of S. Oklahoma Drive. Laundry: Washers and dryers in each unit. Occupancy: ±93.0% (stabilized) Year Built: 2023 (Proposed) Condition: The interior of the building will be in new condition when completed.

The buildings would be estimated to have a useful life of 55 years. Functional Utility: The subject improvements are expected to be adequately functional

when compared with competing properties in the neighborhood.


Density Based on an analysis of the market-rate rent comparables surveyed, the total number of units per acre (density) ranged from approximately 11.94 units per acre to approximately 24.93 units per acre, with an average of about 16.49 units per acre. Based on the subject site being 14.8737 acres, the proposed density of 12.30 units per acre is similar to the competition, although on the lower end. Including the 120 units from the potential Phase II, the density of the subject would be 20.37 units per acre. Shopping Shopping convenient to subject property includes neighborhood shopping and strip centers near the subject property, which is typical for the immediate area. Fast food outlets, major chain pharmacies, and strip shopping centers are located along the major streets in the area. Schools / Recreational Centers As of the 2018-2019 school year (most recent reported due to closure in 2019-2020 for COVID), the Celina ISD had 2,821 students. The district received an accountability rating of A. An average teacher's salary was $55,759, which is $1,332 less than the state average. On average, teachers had 12.7 years of experience. The average SAT score at Celina ISD was 1149. The average ACT score was 23.2. In the Class of 2019, 99% of students received their high school diplomas on time or earlier (above the state average). Public Services Police protection for the subject area is provided through the City of Celina, and the Collin County Sheriff’s Department. Fire protection services for the subject area are provided by the City of Celina Fire Department. The nearest post office is at 918 W. Walnut Street, about a half mile north of the subject. The nearest police station is at 110 N. Colorado Street, less than one mile north of the subject. The nearest fire station is at 1413 S. Preston Road, less than one mile north of the subject. Churches Churches of numerous denominations are located nearby. Many of the primary religious facilities are located in the immediate subject area. Given the above linkages, the area is considered to be a good location for prospective tenants. Statement of Ownership The subject property is currently under the ownership of S. Broadway Development LLC, which purchased the site from Martinek Farming LLC on March 25, 2021 for a reported $4,321,152. No other arm’s length sales transactions involving the subject property are known to have occurred in the last three years.


Conclusions Upon completion, the subject property’s improvements should be considered to have good curb appeal and an advantage over older competing properties in the immediate market area. Prior to the past two years, apartments in Celina were few, with four older properties located northeast of the subject. Currently, One Preston Station has just begun site preparation on S. Oklahoma Drive, with 240 proposed units. The Avilla developments, single-family-style rental homes have 108 completed units and 200 more under construction. Liv Bluewood Apartments are proposed for 272 units. An additional 261 units are in the beginning stages of their due diligence. Development is continuing to occur to the south in Prosper, Aubrey, McKinney, Frisco, and Little Elm. The subject property’s improvements will be competitive to other apartments in the area due to design, distance to shopping and attractions, and its amenity package. The apartment units (all floorplans) should have adequate functional utility. To the best of our knowledge, there will be no actual or suspect code violations and/or health and safety issues.


APARTMENT MARKET ANALYSIS

We have analyzed the multifamily economic outlook, occupancy, supply and demand, rents, and a brief discussion of recent developments in the major submarkets through statistics provided by Reis, Inc., a leading source. Presented first is an overview of the Dallas metro area as a whole, followed by an analysis of the subject’s submarket. The subject is located just northwest of the Plano/Allen/McKinney submarket and just northeast of the NW Denton submarket. We consider the NW Denton submarket are best represents the subject property. Dallas Metro Analysis The Dallas apartment market is comprised of 548,232 units in twenty-five geographic concentrations ranging in size from the 70,613 unit Plano/Allen/McKinney submarket to the Ellis County submarket, which accounts for 3,315 units. In the ten year period beginning with Q3 2011, the Plano/Allen/McKinney submarket has experienced the greatest introduction of new inventory, 24,247 units, amounting to 18.4% of all new market rate rentals added to the market. National Apartment vacancy has increased by 52bps last year, and will plateau at 5.2% by the end of 2021. Both asking rent and effective rent, after four consecutive quarters of decline, trended positively in the second quarter. According to Freddie Mac’s 2021 half year report, national apartment market forecast stays positive for the rest of the year, while Sun Belt section of the country are expected to perform better. Due to speculative construction in years prior to the pandemic, Dallas’ new apartment construction already started to slow down in 2019. Apartment vacancy level was at 6.1% and has added another 10 bps in 2020. New construction still stagnated at the ‘pandemic’ level in the first half of 2021. The net absorption in Q2 2021 increased by almost 150% compared to Q1 2021, and vacancy is forecasted to decline by 2bps for the whole year. As demand continue to hold strong and new construction slows down, vacancy will keep falling for the next 10 years. Asking rent for Dallas apartment market will grow at an average rate of 3%. Asking and Effective Rent Asking rents advanced every month during the second quarter, with June's increase of 0.2% bringing the cumulative quarterly total up to 0.8%. Mean unit prices in the metro are as follows: studios $953, one bedrooms $1,063, two bedrooms $1,404, and three bedrooms $1,880. The market has now experienced three consecutive monthly gains in asking rent, for a cumulative total of 0.8%. Since the beginning of Q3 2011, the metro as a whole has recorded an annual average increase of 4.1%. Effective rents, which exclude the value of concessions offered to prospective tenants, climbed by 0.3% during June to an average of $1,168. The asking rent growth rate of the metro's twenty-five underlying submarkets over the past 12 months has been mixed, with cumulative change rates ranging from 12.6% (Far Northwest/Farmers Branch) to -6.0% (North Irving).



Competitive Inventory, Household Formations, Absorption The second quarter added 12,660 net new households to the Dallas MSA. In most cases, a portion of the newly gained households become tenants in market rate apartment units; therefore, it is prudent to consider longer-term economic and demographic performance as an influence upon the current demand for apartment units. Since the beginning of Q3 2011, household formations in Dallas have averaged 2.0% per year, representing the average annual addition of 34,300 households. During June, net absorption totaled 63 units, while there was no new development; the net effect of absorption and construction dynamics caused the vacancy rate to remain unchanged. Over the last 12 months, market absorption totaled 7,361 units, more than half the average annual absorption rate of 12,680 units recorded since the beginning of Q3 2011. In a long-term context, June vacancy rate is 1.2 percentage points higher than the 5.2% average recorded since the beginning of Q3 2011.






Outlook Between now and year's end, 7,596 units of competitive apartment stock will be introduced to the metro, and Reis estimates that net total absorption will be positive 9,370 units. In response, the vacancy rate will drift downward by 0.4 percentage points to 6.0%. During 2022 and 2023, construction activity under surveillance is projected to deliver a total of 15,893 units. Net new household formations at the metro level during 2022 and 2023 are projected to average 2.4% annually, enough to facilitate an absorption rate averaging 8,979 units per year. The market vacancy rate will finish 2022 at 5.6% and will decline 0.1 percentage points to 5.5% by year end 2023. Between now and year-end 2021 asking rents are expected to rise 2.1% to a level of $1,271, while effective rents will increase by 1.9% to $1,191. On an annualized basis through 2022 and 2023, asking and effective rents are projected to climb by 3.7% and 3.6%, respectively, to finish 2023 at $1,366 and $1,279.


Northwest Denton County Analysis The Northwest Denton County submarket, one of twenty-f ive distinct geographic concentrations within Dallas, contains 22,720 market rate rental units, or 4.1% of the metro's total inventory of market rate rental apartments. In the ten-year period beginning with Q3 2011, new additions to the submarket totaled 12,215 units, amounting to an annualized inventory growth rate of 8.0%; over the same period, the metro growth rate has been 2.8%. Celina is not in a submarket surveyed by REIS, and is located just east of this submarket, which is considered to have similar dynamics to the Celina area. Asking and Effective Rent Asking rents advanced every month during the second quarter, with June's increase of 0.5% bringing the cumulative quarterly total up to 0.9%. Mean unit prices in the submarket are as follows: studios $1,018, one bedrooms $1,153, two bedrooms $1,454, and three bedrooms $1,966. The submarket has now experienced five consecutive monthly gains in asking rent, for a cumulative total of 1.9%. The Northwest Denton County submarket's June asking rent levels and growth rates compare favorably to the metro's averages of $1,245 and 0.2%. Effective rents, which exclude the value of concessions offered to prospective tenants, climbed by 0.6% during June to an average of $1,270.




Competitive Inventory, Household Formations, Absorption Net new household formations in Dallas were 12,660 during the second quarter. In most cases, a portion of the newly gained households become tenants in market rate apartment units; therefore, it is prudent to consider longer-term economic and demographic performance as an influence upon the current demand for apartment units. Since the beginning of Q3 2011, household formations in Dallas have averaged 2.0% per year, representing the average annual addition of 34,300 households. Over the same time period, the metro experienced an average annual absorption rate of 12,680 units. During June, metropolitan absorption totaled 63 units, of which the Northwest Denton County submarket captured fewer than 20. June's positive absorption in the submarket follows modestly negative absorption observed in May. Over the last 12 months, submarket absorption totaled 999 units, 8.6% lower than the average annual absorption rate of 1,093 units recorded since the beginning of Q3 2011. The submarket's average vacancy rate drifted downward by 10 basis points during June to 8.4%, which is 1.6 percentage points higher than the long-term average, and 2.0 percentage points higher than the current metro average.





Outlook Between now and year's end, no more competitive apartment stock will be introduced to the submarket, and Reis estimates that net total absorption will be positive 433 units. As a result, the vacancy rate will continue to drift downward to finish the year at 6.5%. During 2022 and 2023, developers are expected to deliver a total of 1,391 units of market rate rental apartments to the submarket amounting to 8.8% of the new construction introduced to Dallas. Net new household formations at the metro level during 2022 and 2023 are expected to average 2.4% annually, enough to facilitate an absorption rate averaging 8,979 units per year. The Northwest Denton County submarket will capture 7.1% of this absorption. Because this amount does not exceed the forecasted new construction, the submarket vacancy rate will rise by 10 basis points to finish 2023 at 6.6%. Between now and year-end 2021 asking rents are expected to increase 1.9% to a level of $1,393, while effective rents will climb by 1.8% to $1,293. On an annualized basis, asking and effective rents are expected to rise at a rate of 4.1% through year end 2023, reaching average rates of $1,509 and $1,401 per unit, respectively.


Profile of the Area Tenant The primary market area has apartment projects of all four classes represented. Class A properties are typically the newest projects with the greatest amount of amenities. The residents in Class A projects in the area are typically local professionals or technicians with better-paying jobs. Most of these residents are singles or couples with no children. Moderate income persons and families typically reside in the Class B apartments, while lower-income persons and families live at Class C and D properties in the area. Typical reasons for living at certain properties include proximity to work, school, shopping, and community services. Young families with children tend to locate near schools.


PRIMARY MARKET AREA (PMA) MAP


DEMOGRAPHIC DATA

AREA DEVELOPMENT AND GROWTH TRENDS The neighborhood is mature in nature and is experiencing generally stable property values. In most instances, rental rates and occupancy levels have increased over the past two to three years, and near future projections are for flat rates or slow growth. Given the characteristics of the subject’s neighborhood (including its development composition, adequate recreational, educational, and cultural facilities, and access to major transportation routes), the long-term outlook for the area is stable. Demographic Profile The PMA has an estimated 2021 population of 477,306 and is forecasted to grow by 1.98% annually to 524,643 by 2026. Collin County has an estimated 2021 population of 1,072,295 and is forecasted to grow by 1.78% annually to 1,167,704 by 2026.

Households The PMA has an estimated 157,834 households for 2021, and a projected 172,558 households for the year 2026, an annual increase of 1.87%. Collin County has an estimated 383,211 households for 2021, and a projected 416,109 households for the year 2026, an annual increase of 1.72%. The following table is from the August 2021 Collin County Market at a Glance prepared by HUD-EMAD.

The population of Collin County as of July 1, 2021 is estimated at slightly more than 1.1 million people. Since 2010 the population of the county has increased by an average of 28,700, or 3.1%, annually with net in-migration averaging 22,000 people annually. The most recent population growth rate is faster than the average population increase of 29,100, or 4.8%, annually from 2000 through 2010 when there was net in-migration to the county that averaged 21,200 people annually. There are currently an estimated 402,100 households in Collin County, an increase of 10,500, or 3.1% annually, since April 2010. New household formation is above the average of 10,200 new households, or 4.5% increase, annually from 2000 through 2010. The tables below show the household growth rates of the U.S. Highway 75 corridor (Allen/McKinney/Melissa) and the Dallas North Tollway corridor (Frisco/Prosper/Celina), supporting continued population growth along the major traffic arteries north of Dallas. As areas


closer to Dallas become more developed growth rates increase farther north, as specifically shown in the years 2010-2021 and 2021-2026.

Allen McKinney Melissa

2000-2010 11.27% 14.26% 12.98%2010-2021 3.02% 4.90% 11.60%2021-2026 1.68% 1.84% 1.88%

ANNUAL HOUSEHOLDS GROWTH PERCENTAGE TRENDS

Frisco Prosper Celina

2000-2010 17.59% 25.59% 8.44%2010-2021 5.34% 12.69% 6.21%2021-2026 1.83% 1.98% 2.01%

HOUSEHOLDS GROWTH PERCENTAGE TRENDS

At the present time, the Dallas North Tollway (DNT) ends at U. S. Highway 380 (University Drive) in Prosper. North Texas Tollway Authority (NTTA) is planning to extend the DNT north by constructing main-lane bridges over U.S. Highway 380. Construction began in 2019 and is scheduled for completion in FY2021. At present time, construction is still underway. The FY2018-FY2022 Capital Plan includes the estimated project cost of $103.2 million. Total project costs are estimated at $103.5 million. The Phase 4A extension is a 6-mile section from U.S. Highway 380 to FM 428. The FY2018-FY2022 Capital Plan includes $350.0 million for planning, design and construction of 6 main-lanes. Total project costs are estimated at $350.0 million. Part of a proposed 17.6-mile extension of the DNT from U.S. 380 north to FM 121 in Grayson County, Phase 4B runs 7.7-miles from FM 428 to the Denton/Grayson county line. Construction of Phase 4B southbound frontage road from Mobberly Road to County Line Road is estimated at $23.9 million in the FY2018 – FY2022 Capital Plan.


Tenure (Owner-Occupied vs. Rental Units) In 2021, the PMA had ±123,812 (78.44%) owner-occupied housing units and ±34,022 (21.56%) renter occupied units. In 2021, Collin County had ±261,031 (68.12%) owner-occupied housing units and ±122,180 (31.88%) renter occupied units. Market Area Income Per Household The PMA had an estimated 2021 average household income of $158,692 with a median household income of $122,496. Collin County had an estimated 2021 average household income of $139,405 with a median household income of $103,507.

Subject Property


Description PMA Totals Collin County Totals

Population2026 Projection 524,643 1,167,7042021 Estimate 477,306 1,072,2952010 Census 286,205 782,3412000 Census 92,027 491,684

2021 Est. Median Age 36.04 37.792021 Est. Average Age 35.11 37.40

Households2026 Projection 172,558 416,1092021 Estimate 157,834 383,2112010 Census 96,428 283,7592000 Census 31,180 181,971

2021 Est. Average Household Size 3.02 2.79

2021 Est. Households by Household IncomeIncome Less than $15,000 3.37% 4.80%Income $15,000 - $24,999 2.57% 3.87%Income $25,000 - $34,999 3.27% 4.74%Income $35,000 - $49,999 6.89% 8.27%Income $50,000 - $74,999 11.95% 14.30%Income $75,000 - $99,999 11.40% 12.36%Income $100,000 - $124,999 11.69% 11.30%Income $125,000 - $149,999 10.70% 9.61%Income $150,000 - $199,999 15.11% 12.23%Income $200,000 - $249,999 8.11% 6.22%Income $250,000 - $499,999 9.63% 7.75%Income $500,000 and more 5.32% 4.55%

2021 Est. Average Household Income $158,692 $139,4052021 Est. Median Household Income $122,496 $103,507

2021 Est. Tenure of Occupied Housing UnitsOwner Occupied 78.44% 68.12%Renter Occupied 21.56% 31.88%

2021 Est. Median All Owner-Occupied Housing Value $395,316 $377,141Source: 2021Claritas, Inc.

DEMOGRAPHIC ANALYSIS FOR PRIMARY TRADE AREA


ECONOMIC VIABILITY

Market Area Employment The 2021 workforce by occupation data, as estimated by Environics Analytics, is presented in the table below.

Occupation Primary (%)Architect/Engineer 2.43Arts/Entertain/Sports 2.09Building Grounds Maint 1.60Business/Financial Ops 9.62Community/Soc Svcs 1.07Computer/Mathematical 8.46Construction/Extraction 2.52Edu/Training/Library 7.11Farm/Fish/Forestry 0.10Food Prep/Serving 3.47Health Practitioner/Tec 6.49Healthcare Support 1.49Maintenance Repair 1.90Legal 0.89Life/Phys/Soc Science 0.58Management 16.19Office/Admin Support 9.86Production 2.43Protective Svcs 1.82Sales/Related 13.22Personal Care/Svc 2.56Transportation/Moving 4.10Total (may not add to 100% due to rounding) 100.00Civilian Workforce 243,263

Housing Market Area Workforce by Occupation (2021)

Employment Total nonfarm employment for the Dallas-Fort Worth-Arlington MSA was estimated at 3,760,333 for June 2021. The estimate shows a gain of 7.5% over the past year. The unemployment rate is down to 5.7% from the 11.2% in June 2020, during the COVID shutdown. According to HUD-EMAD, August 2021, economic conditions in Collin County are beginning to recover from the impacts of Covid-19. Resident employment in Collin County, during the 3 months ending May 2021, increased by 43,600, or 8.6%, to 548,000, which follows a drop of 44,400, or 8.1% during the 3 months ending May 2020. Collin County has recovered more than 87% of all jobs lost during the COVID shutdown. The unemployment rate in Collin County is currently 5.0%, down from 8.7% 1 year earlier. Major employers in Collin County include Texas Instruments, Capital One, Nortel, and Toyota which each have more than 4,000 employees.


Located below is the latest report from Texas Workforce Commission on the Dallas-Fort Worth-Arlington MSA region.


RENT COMPARABLES

The subject site is proposed to be improved with a newly-constructed, market-rate apartment project, expected to have good overall market appeal. The market was researched for rent comparables which best represent the competition for the subject property. These include apartment projects in the primary market area which are as similar as possible to the subject property in terms of unit mix, age, physical condition, and property type. Ten properties were selected as being most representative of typical new construction in the local market. These properties were constructed between 2010 and 2018, and range in size from 144 units to 420 units. In addition, three recently-completed and one under-construction properties were included to support the proposed subject unit mix. Rental rates for only one of the new properties were provided. All properties operate on a rental system of sliding rents based on supply and demand. Most properties have one-, two-, and three-bedroom units, with three properties also having four-bedroom units. The average unit size is 1,112 square feet, with an average monthly rent of $1,963. The comparables are summarized on the page following the location map.



Property YOC No. UnitsAvg.

Unit Size

Avg. Eff. Rent / Month 1-BR %

1-BR Avg. Rent / Month 2-BR %



4-BR Avg. Rent / Month

Lebanon Ridge 2010 343 1,015 $1,864 43.15% $1,514 49.85% $1,882 7.00% $2,196 N/A N/A

Orion McCord Park 2014 412 1,312 $2,429 26.46% $1,603 41.02% $2,192 6.07% $2,871 26.46% $3,048Overlook by the Park 2015 382 951 $2,391 62.57% $1,482 25.13% $2,356 6.28% $2,576 6.02% $3,151Sorrel Phillips Creek Ranch 2015 351 1,129 $1,995 39.60% $1,420 48.43% $2,203 11.97% $2,361 N/A N/ALegends at Legacy 2000/2015 319 1,193 $2,384 54.86% $1,707 26.33% $2,445 18.81% $3,000 N/A N/A

Century 380 2016 420 1,105 $2,010 26.19% $1,413 45.48% $1,873 21.90% $2,119 6.43% $2,636

Cortland Windsong Ranch 2017 299 1,170 $2,383 34.78% $1,688 51.51% $2,644 13.71% $2,819 N/A N/A

Cortland Phillips Creek Ranch 2017 218 1,082 $2,164 34.86% $1,550 50.92% $2,154 14.22% $2,787 N/A N/A

Four Corners Ph 1 2018 144 1,034 $1,989 34.72% $1,415 51.39% $2,083 13.89% $2,470 N/A N/A

Four Corners Ph 2 2018 246 1,034 $1,989 34.55% $1,415 51.63% $2,083 13.82% $2,470 N/A N/AThe Mansions of Prosper 2021 450 1,202 56.00% 25.33% 9.33% 9.33%The Travis 2020 345 854 $1,593 69.28% $1,347 30.72% $1,838 N/A N/AGray Branch 2020 300 860 66.00% 31.00% 3.00% N/AOne Preston Station 2022 240 915 52.50% 45.00% 2.50% N/A

Average 326 1,112 $1,963 40.70% $1,521 42.46% $2,191 12.45% $2,567 12.06% $2,945

Subject Proposed 183 896 $1,450 40.98% $1,163 56.83% $1,634 2.19% $2,024 N/A

SUMMARY OF COMPARABLE RENTALS


Demand Analysis - Rent Conclusions The developer has projected an average monthly rental rate of $1,450. This rate is generally below the range of the established comparable properties, with the one-and two-bedroom rates similar to, but still below, the rates at The Travis, the most recent completed comparable. The Travis leased to 100% occupancy within six months, faster than typical, indicating that their rents may have been set low to spur a quick lease-up. The average subject unit size is within the range of the comparables, but on the low end, mostly due to having few three-bedroom units. The average unit size shown by the comparables is 1,112 square feet. The majority of the selected comparables range from 1,050 to 1,200 square feet. In addition, the proposed unit mix appears to be relatively balanced, with a slightly less than average number of 3-bedroom units and slightly above average on 2-bedroom units. For 1-bedroom units, the comparables range from 26.19% to 69.28% of total units, with an average of 40.70%. The developer is projecting 40.98% for the subject. For 2-bedroom units, the comparables range from 25.13% to 51.63% of total units, with an average of 42.46%. The developer is projecting 56.83% for the subject. For 3-bedroom units, the comparables range from 2.50% to 21.90% of total units, with an average of 12.45%. The developer is projecting 2.19% for the subject.


RENT VERSUS BUY ANALYSIS According to Nielsen demographic reports, approximately 78.44% of the population in the PMA owns a home while 21.56% rents. The proposed subject is located in an area of the PMA that has seen increasingly active residential construction with home prices typically ranging from the low $250,000's to well over $400,000. The nearest subdivisions to the subject are comprised of mostly traditional-style houses. Based on the above data, the primary market area offers new homes starting from the $350,000's. However, there is virtually no supply of one-bedroom homes in the area. Based on the demographic reports, the median home value was approximately $395,316. Assuming a 30-year loan with 20% down payment and a 5.00% interest rate, the median monthly payment, including property taxes and insurance, is estimated to be $1,832. Comparing the proposed average monthly rent ($1,450) at the subject property and the median payments (including taxes and insurance) on a home, it appears that the rental units are affordable, considering the units will be new compared to an average age of homes in the area of approximately 13 years. Additionally, the subject will offer attractive apartments with good amenities. It is important to consider the differences between the two types of housing. Apartments would be more desirable for those who are considered more transient due to work transfers, do not have the required down payment, or cannot obtain the necessary financing. Additionally, home ownership has the restraint of limited liquidity. The time and expense involved in selling a home can be great. In addition, the subject apartments will offer various amenities to the renters, such as a swimming pool, fitness center, business center, state-of-the art appliances, washer/dryers, etc., that may not be found in a single-family residences. Other advantages of renting include no hassles of property taxes and maintenance, and more flexibility to move. Competition from Shadow Market Additional property-types available for rent in the PMA are the single-family, condo, or townhouses. A search through MLS records indicated very few duplex, condo, or single-family units with one or two bedroom units currently available. This market segment appears to be at stabilized levels and would not be considered direct competition to the subject.


PRIMARY MARKET AREA SUPPLY AND DEMAND ANALYSIS

The following chart delineates household trends in the subject primary market area as reported by Environics Analytics.

Description PMA Totals Collin County Totals

Population2026 Projection 524,643 1,167,7042021 Estimate 477,306 1,072,2952010 Census 286,205 782,3412000 Census 92,027 491,684

2021 Est. Median Age 36.04 37.792021 Est. Average Age 35.11 37.40

Households2026 Projection 172,558 416,1092021 Estimate 157,834 383,2112010 Census 96,428 283,7592000 Census 31,180 181,971

2021 Est. Average Household Size 3.02 2.79

2021 Est. Households by Household IncomeIncome Less than $15,000 3.37% 4.80%Income $15,000 - $24,999 2.57% 3.87%Income $25,000 - $34,999 3.27% 4.74%Income $35,000 - $49,999 6.89% 8.27%Income $50,000 - $74,999 11.95% 14.30%Income $75,000 - $99,999 11.40% 12.36%Income $100,000 - $124,999 11.69% 11.30%Income $125,000 - $149,999 10.70% 9.61%Income $150,000 - $199,999 15.11% 12.23%Income $200,000 - $249,999 8.11% 6.22%Income $250,000 - $499,999 9.63% 7.75%Income $500,000 and more 5.32% 4.55%

2021 Est. Average Household Income $158,692 $139,4052021 Est. Median Household Income $122,496 $103,507

2021 Est. Tenure of Occupied Housing UnitsOwner Occupied 78.44% 68.12%Renter Occupied 21.56% 31.88%

2021 Est. Median All Owner-Occupied Housing Value $395,316 $377,141Source: 2021Claritas, Inc.

DEMOGRAPHIC ANALYSIS FOR PRIMARY TRADE AREA

The households in the primary subject market are projected to increase 1.87% per year over the next five years.


Supply The tables below summarize historic trends in construction and absorption from the REIS report for the NW Denton Submarket.



The table on the following page shows the currently proposed, under construction, un-stabilized, and recently-completed apartments in the PMA.



Unstabilized Units















U/C (Est. Comp. 12/21) The Margo, 4545 Mission Ave., Frisco 358 55.00% 136Proposed Subject 183 0.00% 170


4,093



Demand/Occupancy The following tables summarize the recent history of the subject’s submarket, as defined by RealPage, which includes the Frisco and McKinney areas.


Absorption Analysis Absorption rates for several new properties within the subject’s market area are detailed in the following table.

Year Built Project

Leased Units Months

Monthly Absorption

2020 Gray Branch, 1760 N. Ridge Road, McKinney 300 10 302020 Vale Frisco, 12020 Research Road, Frisco 324 8 412020 The Travis, 900 Gordon Heights Ln., Little Elm 345 6 58

ABSORPTION

According to published reports, occupancy levels in the Frisco and NW Denton submarkets have been over or near 95% since fourth quarter 2016. Edison Frisco (257 units) opened in late 2018 and was stabilized within 12 months, for an average of 21 units per month. Satori Frisco, a 330-unit complex, opened in late 2018 and was stabilized in 12 months, for an average of 26 units per month. Landing at Little Elm, with 384 units, opened in June 2018 and leased 342 units in 17 months, for an average of 20 units per month. More recently, Gray Branch, a 300-unit complex, opened in June 2020 and leased 300 units in 10 months, for an average of 30 units per month. Vale Frisco, a 349-unit complex, opened in December 2020 and leased 324 units in 8 months, for an average of 41 units per month. The Travis, a 345-unit complex, opened in January 2021 and leased 345 units in 6 months, for an average of 58 units per month. For the subject property, I am projecting an absorption rate of approximately 25-30 units per month. Based on REIS and RealPage data, demand and absorption of units in the subject area has been between 1,000 and 3,000 units annually. The numbers do not match between the two surveys due to differing boundaries. Households/Income Based upon the minimum concluded market rent at the subject of $1,027, and assuming rent is no more than 3 times income, the minimum income required to rent at the subject would be $36,972. In 2021, the PMA had ±34,022 (21.56%) renter occupied units. The following table applies these percentages to the income eligible residents in the PMA.


Category % of Total HH % Inc. Qualified

Less than $15,000 3.37% 0.00%

$15,000 - $24,999 2.57% 0.00%

$25,000 - $34,999 3.27% 0.00%

$35,000 - $49,999 (includes 86.85% of segment) * 6.89% 5.98%

$50,000 - $74,999 11.95% 11.95%

$75,000 - $99,999 11.40% 11.40%

$100,000 - $149,999 22.39% 22.39%

$150,000 - $249,999 23.22% 23.22%

$250,000 - $499,999 9.63% 9.63%Over $500,000 5.32% 5.32%

Total Income Qualified 100.00% 89.89%

* Based on minimum required income of $36,972 (3.0x lowest rent est. at $1,027)

INCOME QUALIFIED HOUSEHOLDS

PRIMARY MARKET AREA

The following tables break out renter percentage by income band for the PMA and Collin County, as compiled by the U. S. Census Bureau, based on most recent reported income levels. This data reveals that lower income bands tend to have a higher renter percentage, but that all income bands have rental households.

Income BracketTotal

Households

Renter Occupied

UnitsRenter %

Owner Occupied

UnitsOwner %

<$24,999 7,271 3,479 47.85% 3,792 52.15%$25,000 to $34,999 4,356 2,339 53.70% 2,017 46.30%$35,000 to $49,999 7,794 3,184 40.85% 4,610 59.15%$50,000 to $74,999 14,967 4,917 32.85% 10,050 67.15%$75,000 to $99,999 12,790 3,635 28.42% 9,155 71.58%

$100,000 to $149,999 25,284 3,770 14.91% 21,514 85.09%$150,000 and up 28,844 2,104 7.29% 26,740 92.71%

Total 122,793 23,428 19.91% 77,878 63.42%

PMA Renter Percentage

Income BracketTotal

Households

Renter Occupied

UnitsRenter %

Owner Occupied

UnitsOwner %

<$24,999 33,200 22,399 67.47% 10,801 32.53%$25,000 to $34,999 19,512 10,992 56.33% 8,520 43.67%$35,000 to $49,999 29,344 15,484 52.77% 13,860 47.23%$50,000 to $74,999 49,358 23,825 48.27% 25,533 51.73%$75,000 to $99,999 47,296 17,626 37.27% 29,670 62.73%

$100,000 to $149,999 72,035 20,371 28.28% 51,664 71.72%$150,000 and up 88,024 10,678 12.13% 77,346 87.87%

Total 338,769 121,375 35.83% 217,394 64.17%

Collin County Renter Percentage


Forecast Demand Calculation (Households) Demographic growth of 14,724 households over the next five years or 2,945 households per year, is expected within the PMA. This projected growth may be shown to be low compared to the actual rate of employment growth in the PMA. We have calculated future annual demand for the study area based on these two indicators, as follows.

Current Year Households 157,834 HH

5 Year Future Households 172,558 HH

Total Household Growth (5 Years) 14,724 HH

Annual Household Growth (5 Years) 2,945 HH/Yr.

% Renter Households 21.56%

% Income Qualified 89.89%Calculated Future Demand 571 Units/Yr.

FUTURE DEMAND CALCULATION (HOUSEHOLDS)

PRIMARY MARKET AREA

The following article was published in the Dallas Business Journal August 13, 2021: The Collin County city of Celina is booming, both in terms of rooftops and residents. Residential building permits were up 50 percent last year and they’re pacing to jump even more this year as the city tries to surpass the much larger city of Frisco in single-family home growth. Celina’s population of about 30,000 has tripled in the past four years and is expected to hit about 160,000 people by the end of the decade. Meanwhile, Corson Cramer Development, a new Dallas-based residential land development firm, has purchased 220 acres for a new community named North Sky Celina west of Preston Road off Louisiana Drive. As planned, the community will have 783 residential homesites. The homes are expected to range in price from the low $200,000s to the $400,000s. Celina has created a 30-year plan for how they want the city to grow and a vision that allows developers to deliver high-quality communities more quickly than in other North Texas cities, City Manager Jason Laumer said. In the following interview, Laumer discusses the city’s growth and other topics. What do you see as single biggest challenge right now, on the economic development front in Celina? I think it's continuing to keep up with the growth and expansion. I can't prove it, but I think we're going to be the fastest growing city in America. If you're looking at Frisco, they were No. 1 from 2010-2020 according to the Census. I think all that growth is coming our way. What is your population right now? It's approximately 30,000. When I started about four years ago we were less than 10,000 people. And now we're 30,000 people. We're expecting to add 10,000 people in 2021 alone.


What's your projection for 10 years out? We expect to be about 160,000 people in 10 years. Our ultimate buildout is about 370,000. We're slightly bigger than Frisco, just to give you an idea of our land mass. What does North Sky Celina bring to the city? Corson Cramer Development is great for the city. They're great developers. The city has been lucky because we have a lot of great developers. We're on the planning corridor 10 miles from the tollway and 10 miles from Preston. We have two great school districts, and so because of our market we're really attracting good developers who want to do high-quality projects. We like development. We're very pro-development that’s done according to our vision. What’s that vision? Our vision is trying to build neighborhoods and not just subdivisions. So when I say neighborhoods I mean, incorporating trails and open space and tying it together and providing opportunities for our residents to meet each other so they feel like they're more of a community. So that might be something as small as a fire pit with some Adirondack chairs or as large as a pool and amenity center, playgrounds. It's really neat when you can incorporate access to trails for people to walk to a playground and two moms to meet each other and their kids to meet each other. And I think that's what really builds community, and that's the kind of developments we want and I think North Sky will be like that. How much have your building permits grown by? In terms of building permits, we’ve ranked as the fastest-growing in DFW for the past two years. We were up 50 percent last year. We're the No. 2 single-family city in the Metroplex and we're tracking our permits this year to be up another 50 percent, which is really almost ridiculous. Who are you No. 2 behind? Frisco. We’re hoping to pass them up this year. Most years, Frisco does about 2,400 permits a year. Last year we did 1,862. We're on track this year, if nothing changes in the market, to do 3,000 permits. That's a huge increase. We did 776 permits in the first three months of this year. Where are your new residents coming from? It's a combination. We have a lot of people moving into the Metroplex from out of state. Someone told me the other day they were driving down Preston and saw an Arizona license plate and a California license plate an Illinois license plate. I run into a lot of families that moved here from Frisco or from Plano to try to get a little further north or they like our downtown square. You know, the feeling of community and small town charm that we're trying to keep as we grow. Where do most of the residents of Celina work? It’s also a combination. Because of COVID, because of our Internet capabilities with fiber, I think we have a lot of people that work from home or alternate between working at home and going to the office. A lot of people work down the tollway. There are as many jobs now at 121 and the tollway as there are in the Central Business District of Dallas. That's a tremendous amount of growth in jobs there, and a lot of our residents take advantage of that.


What else is driving growth, generally? It's part of the Metroplex’s overall growth. Good geography and good timing. The DFW Metroplex continues to grow. Last time I heard, it was about 100,000 people a year and I think a lot of them are deciding to pick Celina. People like the idea of small-town charm and a little bit more open space, and the historic downtown. What will the Collin County outer loop bring to Celina? The Collin County outer loop over time is going to be much like the tollway. Over time it is going to be a major transportation hub to go east-west just like tollway is to go north-south. And so as we've seen as the tollway expands, your growth continues. I think the outer loop will be the same way. Future demand, based on household growth projections of Claritas, over the next five years is calculated at 571 units per year in the PMA. The household growth is positive but appears to be understated based on the noted growth patterns in new housing in the area. We have estimated annual demand to be twice this number, or 1,141 units per year in the PMA. Future Demand Calculation (Employment) Based on the previously presented demographic data, current demographic data has projected the total household growth within the Primary Market Area over the next five years will be 14,724 households in the entire PMA and that approximately 21.56% are renters. Environics Analytics estimates the household size as 3.02 persons within the PMA. Typically, the population will increase 1.5 to 2.0 persons with every job increase, based on calculations derived by the Atlanta FED jobs calculator. As the area is a regional employment center, an analysis of future demand from employment growth is necessary. The following chart shows the employment estimates and annual growth rates as indicated by Texas A&M Real Estate Center since 2005.


Year # of Jobs# of New

Jobs % Growth

2005 351,591

2006 368,184 16,593 4.72%

2007 380,761 12,577 3.42%

2008 387,806 7,045 1.85%

2009 386,087 -1,719 -0.44%

2010 394,975 8,888 2.30%

2011 407,778 12,803 3.24%

2012 419,576 11,798 2.89%

2013 431,462 11,886 2.83%

2014 451,569 20,107 4.66%

2015 470,919 19,350 4.29%

2016 495,061 24,142 5.13%

2017 513,526 18,465 3.73%

2018 532,841 19,315 3.76%

2019 554,215 21,374 4.01%

2020 534,617 -19,598 -3.54%June 2021 553,163 18,546 3.35%

Annual Average since 2006 2.89%Average last five years (excl 2020) 4.00%

COUNTY JOB ESTIMATES

In calculating future demand based on future job growth over a five-year period, using a conservative (4.00%), moderate (4.25%) and an aggressive (4.50%) percentage compounded annually, as shown by the chart below.

4.00% 4.25% 4.50%Job Growth Job Growth Job Growth

Estimated Area Employment Growth (5 yrs) 119,844 127,972 136,179

1.75 persons per job 209,728 223,952 238,313

% renters - County Area 31.88% 31.88% 31.88%

# of renters (5 yrs) - County Area 66,861 71,396 75,974

Persons per HH (Claritas, Inc.) - County Area 2.79 2.79 2.79# of HH (5 yrs) - County Area 23,965 25,590 27,231

Average Annual Unit Demand 4,793 5,118 5,446

COUNTY ESTIMATED APT. UNIT DEMAND (BASED ON JOB GROWTH)

The estimated annual demand for apartments in Collin County over the next five years, based on the job growth calculation, indicates strong demand.


The subject PMA’s population is 44.51% of the county; therefore, it is reasonable to conclude that job growth with the PMA will be at least consistent with the county job estimated job growth.

4.00% 4.25% 4.50%Job Growth Job Growth Job Growth

Estimated Area Employment Growth (5 yrs) 53,346 56,964 60,617

1.75 persons per job 93,355 99,687 106,079

% renters - PMA 21.56% 21.56% 21.56%

# of renters (5 yrs) - PMA 20,127 21,492 22,871

Persons per HH (Claritas, Inc.) - PMA 3.02 3.02 3.02# of HH (5 yrs) - PMA 6,665 7,117 7,573

Average Annual Unit Demand 1,333 1,423 1,515

PMA ESTIMATED APT. UNIT DEMAND (BASED ON 44.51% OF COUNTY JOB GROWTH)

The estimated annual demand for apartments over the next five years, based on the job growth calculation, is shown in the previous table. Equal weight on employment growth and population growth is reasonable. Summary of Demand Estimates (Weighted Average) Combining both the estimated household growth and the estimated employment growth calculations, equal weight was given to the employment growth and household growth. The PMA household growth is expected to increase by 9.33% from 2021 to 2026, while employment growth is projected to grow by 4.0%. The projected household growth is due in large part to the projected Dallas/Fort Worth employment growth moving forward. Both demand drivers should play a significant part in the multifamily demand in the subject’s market area, with employment given more weight as it tends to be a greater growth driver.

Est. Avg. Total Apt. Demand Next 5 Years

Est. Avg. Annual

Apt. Demand

Times Weighting

Weighted Annual

Apt. Demand

Est. Household Growth 5,707 1,141 X 30% = 342Est. Employment Growth 6,665 1,333 X 70% = 933

Combined Annual Apartment Demand 1,275

SUMMARY OF APT. DEMAND ESTIMATES (USING 4.00% ANNUAL JOB GROWTH)



Est. Avg. Annual

Apt. Demand

Times Weighting

Weighted Annual

Apt. Demand

Est. Household Growth 5,707 1,141 X 30% = 342Est. Employment Growth 7,117 1,423 X 70% = 996




Est. Avg. Annual

Apt. Demand

Times Weighting

Weighted Annual

Apt. Demand

Est. Household Growth 5,707 1,141 X 30% = 342Est. Employment Growth 7,573 1,515 X 70% = 1,060



The 4.25% job growth rate was most reasonable as it is not overly aggressive but recognizes the potential changes in employment over the next five years. This growth rate and the resulting demand figure is used in the summary of demand/supply in a following section.


Summary of Total Demand The following table summarizes the proposed, under construction, un-stabilized, and recently-completed projects in the PMA (as identified by the analysts).



Unstabilized Units















U/C (Est. Comp. 12/21) The Margo, 4545 Mission Ave., Frisco 358 55.00% 136

Proposed Subject 183 0.00% 170


4,093




In summary, the following table equates the projected future demand (based on a weighted average of 30%/70% for household/employment growth at 4.25% employment growth rate) and the net additions to the market (based on our survey of the market).

PMA

Previously Estimated Future Demand (3 years)* 4,014Net Proposed Additions/Removals from Market (3 years) 4,093

Remaining Demand at end of three years from current -79

*30% Household Growth; 70% Job Growth at 4.25% Growth Rate

SUMMARY OF DEMAND/SUPPLY RELATIONSHIP

Based on these figures, the Primary Market Area has sufficient future demand to support all of the proposed construction projects in the PMA. The subject is projected to be completed in 2023; therefore, will be similar in development horizon to this time frame. Capture Rate The capture rate is defined as the percentage of age & income-qualified households required to reach a stabilized occupancy at the subject, which is calculated by dividing the number of units at the subject by the age and income-qualified households in the PMA.

Number of Existing Households in PMA 157,834

% of Renter Households 21.56%

% of Income-Qualified Households 89.89%

Estimated Current Income, Renter Qualified HH 30,589

Projected Income, Renter Qualified HH demand (3 yrs) 4,014Total Current/Projected Income/Renter Qualified HH 34,603# Subject Units (Stabilized) 170

Capture Rate 0.49%

CAPTURE RATE CALCULATION


Penetration Rate The penetration rate is defined as the percentage of age and income qualified households required to achieve stabilized occupancy at all existing and proposed projects. The existing competitive units in the PMA figure is based on the YOC 2009 or newer multifamily residential units. This figure plus the subject proposed units are the approximate existing/new units in the PMA.

Approximate Existing Competitive Units in PMA (YOC 2009+) 17,674

Plus New Units in PMA + Subject 4,093

Approximate Existing/New Units in PMA 21,767

Total Current/Projected Income/Renter Qualified HH 34,603Approximate Existing/New Units in PMA 21,767

Penetration Rate 62.90%

PENETRATION RATE CALCULATION

Conclusion Based on the above analysis, there should be sufficient demand in the PMA to absorb all subject units once they are completed, based on an annual demand of 1,338 units. Based on discussions with owners and managers, absorption rates of recently-constructed apartments ranged from 15 to 25 units per month. For the subject property, I am projecting an absorption rate of approximately 25-30 units per month.

Evaluation of Subject Property

Based on supply and demand characteristics of the subject’s Primary Market Area (PMA), as reflected by current occupancy rates, rental rates, absorption, and projected population growth, there is sufficient demand to construct the subject project as of August 20, 2021. Upon completion of the improvements, the subject property will have good curb appeal and an advantage over older competing properties in the immediate market area. The apartment units (all floorplans) will have adequate functional utility, based on the information provided by the client. To the best of our knowledge, there will be no actual or suspect code violations and/or health and safety issues, based information provided by the client. It is my conclusion that the subject property will have a competitive advantage in its micro-market area into the near future. The amenities at the subject property will be competitive with most other good-quality projects in the subject’s neighborhood. Further, the subject property will be very competitive due to its new condition. Effect of Subject Property on Existing Apartment Market Based on the high occupancy levels of the existing properties in the market, along with the low level of recent construction, we project that the subject property will have minimal sustained negative impact upon the existing apartment market. Managers interviewed indicated all indicated a need for quality housing in the subject area. Any negative impact from the subject property should be of reasonable scope and limited duration.


SUBJECT PROPERTY PHOTOGRAPHS

Subject site as seen from S. Oklahoma Drive

Subject site as seen from S. Oklahoma Drive


View facing north along S. Oklahoma Drive (subject on left)

View facing south along S. Oklahoma Drive (subject on right)

Addenda


ENGAGEMENT LETTER

Patrick O’Connor & Associates, L.P., dba

2200 N. Loop W., Suite 200 Houston, TX 77018 (713) 375-4010 Fax: (866) 491-9165 www.poconnor.com

Letter of Engagement

July 29, 2021 Mr. Richard Henson S. Broadway Development LLC 18333 Preston Rd, Suite 500 Dallas, TX 75252 Office: (214) 945-8630 Cell: (214) 755-8278 [email protected]

Parties to Agreement This agreement is between Patrick O’Connor & Associates, L.P. doing business as O’Connor & Associates and Client: Mr. Richard Henson

S. Broadway Development LLC 18333 Preston Rd, Suite 500 Dallas, TX 75252

Intended Users: S. Broadway Development LLC Subject Property: Proposed 183 unit (Phase 1) apartment project on S. Oklahoma

Drive, Celina, TX (Mkt Rate Development) Scope of Work Type of Assignment: Market Study – New Construction Type of Interest: Fee Simple Estate Purpose of Assignment: The market study will provide an investigation into current and

historical rental, occupancy, absorption, and construction trends for the subject submarket, as, well as determine the reasonableness of the development features (unit mix, etc.).

Delivery of the Report: 4 weeks from date of engagement

mailto:[email protected]


Mr. Richard Henson July 29, 2021 Page 2 Intended user Client is the user of this report/assignment and a Market Study is requested. O’Connor & Associates’ work file will contain the information necessary to support such report/assignment. The report/assignment will be prepared in accordance with the Uniform Standards of Professional Appraisal Practice, the Standards of Professional Appraisal Practice of the Appraisal Institute, and the Code of Professional Ethics of the Appraisal Institute. Fee O’Connor & Associates fee for the above-described work is detailed in the engagement terms of this contract. The contract fee includes an electronic copy of the appraisal report. We will follow up the electronic report with three hard copies. The contract fee estimate does not include time spent in negotiations, mediation, arbitration, depositions, testifying before any regulatory of judicial forum, preparation for such hearings, defending O’Connor & Associates opinion of value before the IRS, or for any services other than the work described in the Scope of Work. Any such work is billed at $350 per hour. Should such work become necessary, O’Connor & Associates will contact the client prior to commencing any additional work. Changes to Fee O’Connor & Associates has based the fee quote above on an estimate of the time it will take to complete the work described in the Scope of Work. O’Connor & Associates will notify Client in writing should it be necessary to adjust the fee due to unforeseen or changed circumstances or delays, including, but not limited to the following:

1. The engagement scope deviates from the scope described herein. 2. There are material changes to the information originally supplied by Client.

O’Connor & Associates will base any fee revision on their estimate of the additional time needed to complete the assignment, at the above hourly rate, and inform the Client prior to proceeding with any additional work. Communication in writing may include email. Limiting Conditions & Assumptions In addition to all other terms and conditions of this agreement, Appraiser and Client agree that Appraiser’s services under this agreement and appraisal report(s), and any use of the reports(s), are and will be subject to the statements, limiting conditions and other terms set forth in the appraisal reports(s). Appraiser’s standard appraisal statements, limiting conditions and terms are attached to this agreement and incorporated herein. Appraiser may determine additional conditions and terms affecting the appraisal during performance of the assignment which may be identified in the report(s).


Mr. Jordan WallaceJuly 29, 2021Page 3

By signing and returning the original of this engagement agreement, along with any indicated retainer, client accepts all terms and conditions contained herein. The due date is effective based on receipt of this signed letter, any retainer, and required information on the subject property.

Client is obligated to and agrees to pay the entire fee for a completed assignment or work-to-date fee if work is cancelled. Payment is NOT contingent upon consummation of any closing or lendingactivity associated with the subject property.

If you have any questions about our proposal, or this contract, please do not hesitate to contact me. We appreciate the opportunity to be of service and look forward to assisting you with this project.

Sincerely,Patrick O’Connor & Associates, LPdba O’Connor & Associates

_____________________________________John R. Fisher, LEED® APManaging Director, Appraisal Services

Acceptance:

"I agree to the above described terms for fee payment and to pay the full amount due upon completion of the assignment. I further agree to pay interest on any amount due past 30 days at the rate of 15% per annum until the full amount due is paid."

Mr. Jordan Wallace Name (Printed) Title

Signature Date

Any dispute, action or claim arising out of or in connection with this engagement shall be governed by the laws of the state of Texas and shall be subject to the exclusive jurisdiction of the courts of Harris County, Texas.

Contact information for appraiser site visit____________________________

Telephone ___________________________________

Richard Henson Manager

Jul 29, 2021

[email protected]

903-841-1871


Mr. Richard Henson July 29, 2021 Page 5

ASSUMPTIONS AND LIMITING CONDITIONS This report is subject to the following assumptions and limiting conditions:

1) No survey of the subject property was undertaken by the appraiser(s) and the appraiser(s) assume no responsibility associated with such matters.

2) The value is based on the assumption of responsible ownership and competent management. The subject property is assumed to be free and clear of all liens, except as may be otherwise herein described. No responsibility is assumed by the appraiser(s) for matters legal in character, nor is any opinion on the title rendered, which is assumed to be good and marketable.

3) The information contained herein has been gathered from sources deemed to be reliable, but the appraiser(s) assume no responsibility for its accuracy. Correctness of estimates, opinions, dimensions, sketches and other exhibits that have been furnished and have been used in this report are not guaranteed.

4) Any leases, agreements or other written or verbal representations and/or communications and information received by the appraiser(s) have been reasonably relied upon in good faith but have not been analyzed for their legal implications. We urge and caution the user of this report to obtain legal counsel of his/her own choice to review the legal and factual matters, and to verify and analyze the underlying facts and merits of any investment decision in a reasonably prudent manner.

5) Appraiser(s) assume no responsibility for any hidden agreements known as "side reports," which may or may not exist relative to this property, which have not been made known to us, unless specifically acknowledged within this report.

6) This report is to be used in whole, and not in part. Any separate valuation for land and improvements shall not be used in conjunction with any other valuation and is invalid if so used. Possession of this report or any copy thereof does not carry with it the right of publication nor may the same be used for any purpose by anyone but the client without the previous written consent of the appraiser(s), and in any event, only in its entirety.

7) The appraiser(s), by reason of this report, are not required to give testimony in court with reference to the property unless notice and proper arrangements have been previously made therefore.



Assumptions and Limiting Conditions - Continued

8) Neither all nor any part of the contents of this report shall be conveyed to the public through advertising, public relations, news, sales or other media without prior written consent and approval of the author.

9) No subsoil data or analysis based on engineering core borings or other tests were furnished to us. We have assumed that there are no subsoil defects present that would impair development of the land to its maximum permitted use, or would render it more or less valuable. No responsibility is assumed for engineering, which might be required to discover such factors.

10) The construction and physical condition of the improvements described herein are based on a site visit. No liability is assumed by the appraiser(s) for the soundness of structural members since no engineering tests were conducted. No liability is assumed for the condition or adequacy of mechanical equipment, plumbing or electrical components. No responsibility is assumed for engineering, which might be required to discover such factors. We urge the user of this report to retain an expert in this field.

11) Unless otherwise stated in this report, the existence of hazardous substances, including without limitation asbestos, polychlorinated, byphenyls, petroleum leakage, or agricultural chemicals, which may or may not be present in or on the property, or other environmental conditions were not called to the attention of the appraiser(s) nor did the appraiser(s) become aware of such during the appraiser(s) site visit. The appraiser(s) have no knowledge of the existence of such materials on or in the property unless otherwise stated. The appraiser(s), however, are not qualified to test such substances or conditions. If the presence of such substances as asbestos, urea formaldehyde, foam insulation or other hazardous substance or environmental conditions may affect the value of the property, the value is predicated on the assumption that there is no such condition on or in the property or in such proximity thereto as to cause a loss in value. No responsibility is assumed for any such conditions, nor for any expertise or engineering knowledge required to detect or discover them. We urge the user of this report to retain an expert in the field of environmental impacts on real estate if so desired.

12) The projections of income, expenses, terminal values or future sales prices are not predictions of the future, rather, they are the best estimate of current market thinking of what future trends will be. No warranty or representation is made that these projections will materialize. The real estate market is constantly changing. It is not the task of the appraiser(s) to estimate the conditions of a future real estate market, but rather to reflect what the investment community envisions for the future, and upon what assumptions of the future investment decisions are based.



Assumptions and Limiting Conditions - Continued

13) The client or user of this report agrees to notify the appraiser(s) of any error, omission or inaccurate data contained in the report within 15 days of receipt, and return the report and all copies thereof to the appraiser(s) for correction prior to any use.

14) The acceptance of this report, and its subsequent use by the client or any other party in any manner whatsoever for any purpose, is acknowledgment by the user that the report has been read and understood, and specifically agrees that the data and analyses, to their knowledge, are correct and acceptable.

15) This assignment was not based upon a requested minimum valuation, a specific valuation, or the approval of a loan.

16) The Americans With Disabilities Act (ADA) became effective January 26, 1992. We have not made a specific compliance survey and analysis of this property to determine whether or not it is in conformity with the various detailed requirements of the ADA. It is possible that a compliance survey of the property together with a detailed analysis of the requirements of the ADA could reveal that the property is not in compliance with one or more requirements of the act. If so, this fact could have a negative impact upon the value of the property. However, since we have no direct evidence relating to the issue of compliance, we did not consider possible noncompliance with requirements of ADA in forming an opinion of the value of the property.



ENVIRONMENTAL ASSUMPTIONS This report is subject to the following environmental assumptions:

1) There is a safe, lead-free, adequate supply of drinking water.

2) The subject property is free of soil contamination.

3) There is no uncontained friable asbestos or other hazardous asbestos material on the property. The appraiser is not qualified to detect such substances.

4) There are no uncontained PCB's on or near the property.

5) The radon level is at or below EPA recommended levels.

6) Any functioning underground storage tanks (USTs) are not leaking and are properly registered; any abandoned USTs are free from contamination and were properly drained, filled and sealed.

7) There are no hazardous waste sites on or near the subject property that negatively affect the value and/or safety of the property.

8) There is no significant urea formaldehyde (UFFI) insulation or other urea formaldehyde material on the property.

9) There is no flaking or peeling of lead-based paint on the property.

10) The property is free of air pollution.

11) There are no wetlands/flood plains on the property (unless otherwise stated in the report).

12) There are no other miscellaneous hazardous substances and/or detrimental environmental conditions on or in the area of the site (excess noise, radiation, light pollution, magnetic radiation, acid mine drainage, agricultural pollution, waste heat, miscellaneous chemical, infectious medical wastes, pesticides, herbicides, and the like).


DEMOGRAPHICS

Pop-Facts® Demographic Snapshot | SummaryTrade Area: Celina Apartments PMA

Population2000 Census 92,0272010 Census 286,2052021 Estimate 477,3062026 Projection 524,643Population GrowthPercent Change: 2000 to 2010 211.00Percent Change: 2010 to 2021 66.77Percent Change: 2021 to 2026 9.92

Households2000 Census 31,1802010 Census 96,4282021 Estimate 157,8342026 Projection 172,558Household GrowthPercent Change: 2000 to 2010 209.26Percent Change: 2010 to 2021 63.68Percent Change: 2021 to 2026 9.33

Family Households2000 Census 25,7262010 Census 76,5012021 Estimate 124,7352026 Projection 136,337Family Household GrowthPercent Change: 2000 to 2010 197.37Percent Change: 2010 to 2021 63.05Percent Change: 2021 to 2026 9.30

Benchmark: USA © 2021 Claritas, LLC. All rights reserved. Source: ©Claritas, LLC 2021 . (https://claritas.easpotlight.com/Spotlight/About/3/2021)

Pop-Facts® Demographic Snapshot | Population & RaceTrade Area: Celina Apartments PMA Total Population: 477,306 | Total Households: 157,834

Count %2021 Est. Population by Single-Classification RaceWhite Alone 308,361 64.61Black/African American Alone 61,634 12.91American Indian/Alaskan Native Alone 2,747 0.58Asian Alone 63,795 13.37Native Hawaiian/Pacif ic Islander Alone 407 0.09Some Other Race Alone 21,628 4.53Two or More Races 18,734 3.922021 Est. Population by Hispanic or Latino OriginNot Hispanic or Latino 400,103 83.83Hispanic or Latino 77,203 16.18Mexican Origin 55,204 71.50Puerto Rican Origin 3,604 4.67Cuban Origin 1,366 1.77All Other Hispanic or Latino 17,029 22.062021 Est. Pop by Race, Asian Alone, by CategoryChinese, except Taiwanese 6,514 10.21Filipino 3,912 6.13Japanese 811 1.27Asian Indian 35,035 54.92Korean 5,222 8.19Vietnamese 4,538 7.11Cambodian 550 0.86Hmong 1 0.00Laotian 58 0.09Thai 259 0.41All Other Asian Races Including 2+ Category 6,895 10.812021 Est. Population by AncestryArab 3,361 0.70Czech 1,862 0.39Danish 1,497 0.31Dutch 4,107 0.86English 34,154 7.16French (Excluding Basque) 9,267 1.94French Canadian 1,586 0.33German 52,744 11.05Greek 1,172 0.25Hungarian 1,042 0.22Irish 35,703 7.48Italian 16,019 3.36Lithuanian 583 0.12Norwegian 3,676 0.77Polish 6,910 1.45Portuguese 1,256 0.26Russian 2,474 0.52Scotch-Irish 4,812 1.01Scottish 7,883 1.65Slovak 510 0.11Sub-Saharan African 6,588 1.38Swedish 4,036 0.85Swiss 687 0.14Ukrainian 840 0.18United States or American 29,318 6.14Welsh 2,481 0.52West Indian (Excluding Hispanic groups) 963 0.20Other ancestries 169,433 35.50Ancestries Unclassif ied 72,342 15.162021 Est. Pop Age 5+ by Language Spoken At HomeSpeak Only English at Home 340,992 77.26Speak Asian/Pacif ic Isl. Lang. at Home 25,952 5.88Speak Indo-European Language at Home 17,246 3.91Speak Spanish at Home 54,731 12.40Speak Other Language at Home 2,461 0.562021 Est. Hisp. or Latino Pop by Single-Class. RaceWhite Alone 49,483 64.09Black/African American Alone 1,164 1.51American Indian/Alaskan Native Alone 854 1.11Asian Alone 428 0.55Native Hawaiian/Pacif ic Islander Alone 52 0.07Some Other Race Alone 20,692 26.80Two or More Races 4,530 5.87


Pop-Facts® Demographic Snapshot | Population & RaceTrade Area: Celina Apartments PMA Total Population: 477,306 | Total Households: 157,834

Count %2021 Est. Population by SexMale 235,072 49.25Female 242,234 50.752021 Est. Population by AgeAge 0 - 4 35,924 7.53Age 5 - 9 37,019 7.76Age 10 - 14 38,497 8.07Age 15 - 17 22,488 4.71Age 18 - 20 19,230 4.03Age 21 - 24 22,700 4.76Age 25 - 34 55,215 11.57Age 35 - 44 80,443 16.85Age 45 - 54 74,993 15.71Age 55 - 64 48,471 10.15Age 65 - 74 27,121 5.68Age 75 - 84 12,457 2.61Age 85 and over 2,748 0.58Age 16 and over 358,479 75.11Age 18 and over 343,378 71.94Age 21 and over 324,148 67.91Age 65 and over 42,326 8.87Median Age -- 36.04Average Age -- 35.112021 Est. Pop Age 15+ by Marital StatusTotal, Never Married 91,279 24.95Male, Never Married 46,310 12.66Female, Never Married 44,969 12.29Married, Spouse Present 220,463 60.26Married, Spouse Absent 11,904 3.25Widowed 11,729 3.21Male, Widowed 2,156 0.59Female, Widowed 9,573 2.62Divorced 30,491 8.33Male, Divorced 10,979 3.00Female, Divorced 19,512 5.332021 Est. Male Population by AgeMale: Age 0 - 4 18,440 7.84Male: Age 5 - 9 18,941 8.06Male: Age 10 - 14 19,675 8.37Male: Age 15 - 17 11,481 4.88Male: Age 18 - 20 9,937 4.23Male: Age 21 - 24 11,612 4.94Male: Age 25 - 34 26,131 11.12Male: Age 35 - 44 38,715 16.47Male: Age 45 - 54 37,282 15.86Male: Age 55 - 64 24,263 10.32Male: Age 65 - 74 12,040 5.12Male: Age 75 - 84 5,508 2.34Male: Age 85 and over 1,047 0.45Median Age, Male -- 35.39Average Age, Male -- 34.462021 Est. Female Population by AgeFemale: Age 0 - 4 17,484 7.22Female: Age 5 - 9 18,078 7.46Female: Age 10 - 14 18,822 7.77Female: Age 15 - 17 11,007 4.54Female: Age 18 - 20 9,293 3.84Female: Age 21 - 24 11,088 4.58Female: Age 25 - 34 29,084 12.01Female: Age 35 - 44 41,728 17.23Female: Age 45 - 54 37,711 15.57Female: Age 55 - 64 24,208 9.99Female: Age 65 - 74 15,081 6.23Female: Age 75 - 84 6,949 2.87Female: Age 85 and over 1,701 0.70Median Age, Female -- 36.63Average Age, Female -- 35.73


Pop-Facts® Demographic Snapshot | Housing & HouseholdsTrade Area: Celina Apartments PMA Total Population: 477,306 | Total Households: 157,834

Count %2021 Est. Households by Household TypeFamily Households 124,735 79.03NonFamily Households 33,099 20.972021 Est. Group Quarters Population2021 Est. Group Quarters Population 531 0.112021 HHs By Ethnicity, Hispanic/Latino2021 HHs By Ethnicity, Hispanic/Latino 19,919 12.622021 Est. Family HH Type by Presence of Own Child.Married Couple Family, own children 63,452 50.87Married Couple Family, no own children 41,307 33.12Male Householder, own children 3,578 2.87Male Householder, no own children 2,298 1.84Female Householder, own children 9,513 7.63Female Householder, no own children 4,587 3.682021 Est. Households by Household Size1-Person Household 25,439 16.122-Person Household 43,975 27.863-Person Household 30,334 19.224-Person Household 32,742 20.755-Person Household 16,272 10.316-Person Household 6,017 3.817-or-more-person 3,055 1.942021 Est. Average Household Size -- 3.022021 Est. Households by Number of VehiclesNo Vehicles 2,224 1.411 Vehicle 35,342 22.392 Vehicles 82,914 52.533 Vehicles 27,499 17.424 Vehicles 7,573 4.805 or more Vehicles 2,282 1.452021 Est. Average Number of Vehicles -- 2.082021 Est. Occupied Housing Units by TenureHousing Units, Owner-Occupied 123,812 78.44Housing Units, Renter-Occupied 34,022 21.562021 Owner Occ. HUs: Avg. Length of Residence2021 Owner Occ. HUs: Avg. Length of Residence -- 8.962021 Renter Occ. HUs: Avg. Length of Residence2021 Renter Occ. HUs: Avg. Length of Residence -- 4.682021 Est. Owner-Occupied Housing Units by ValueValue Less Than $20,000 929 0.75Value $20,000 - $39,999 354 0.29Value $40,000 - $59,999 196 0.16Value $60,000 - $79,999 196 0.16Value $80,000 - $99,999 355 0.29Value $100,000 - $149,999 1,722 1.39Value $150,000 - $199,999 4,946 4.00Value $200,000 - $299,999 23,447 18.94Value $300,000 - $399,999 31,151 25.16Value $400,000 - $499,999 24,454 19.75Value $500,000 - $749,999 24,014 19.39Value $750,000 - $999,999 8,245 6.66Value $1,000,000 - $1,499,999 2,495 2.02Value $1,500,000 - $1,999,999 705 0.57Value $2,000,000 or more 603 0.492021 Est. Median All Owner-Occupied Housing Value -- 395,315.78


Pop-Facts® Demographic Snapshot | Housing & HouseholdsTrade Area: Celina Apartments PMA Total Population: 477,306 | Total Households: 157,834

Count %2021 Est. Housing Units by Units in Structure1 Unit Attached 3,263 1.981 Unit Detached 133,223 80.652 Units 691 0.423 to 4 Units 1,488 0.905 to 19 Units 10,402 6.3020 to 49 Units 4,806 2.9150 or More Units 8,526 5.16Mobile Home or Trailer 2,746 1.66Boat, RV, Van, etc. 47 0.032021 Est. Housing Units by Year Structure BuiltBuilt 2014 or Later 53,945 32.66Built 2010 to 2013 18,105 10.96Built 2000 to 2009 59,124 35.79Built 1990 to 1999 19,129 11.58Built 1980 to 1989 6,367 3.85Built 1970 to 1979 5,510 3.34Built 1960 to 1969 1,245 0.75Built 1950 to 1959 770 0.47Built 1940 to 1949 327 0.20Built 1939 or Earlier 670 0.412021 Housing Units by Year Structure Built2021 Est. Median Year Structure Built -- 2,008.192021 Est. Households by Presence of People Under 182021 Est. Households by Presence of People Under 18 80,151 50.78Households with 1 or More People under Age 18Married Couple Family 65,140 81.27Other Family, Male Householder 3,997 4.99Other Family, Female Householder 10,566 13.18NonFamily Household, Male Householder 352 0.44NonFamily Household, Female Householder 96 0.122021 Est. Households with No People under Age 18Households with No People under Age 18 77,683 49.22Households with No People under Age 18Married Couple Family 39,603 50.98Other Family, Male Householder 1,890 2.43Other Family, Female Householder 3,547 4.57NonFamily, Male Householder 15,296 19.69NonFamily, Female Householder 17,347 22.33


Pop-Facts® Demographic Snapshot | Affluence & EducationTrade Area: Celina Apartments PMA Total Population: 477,306 | Total Households: 157,834

Count %2021 Est. Pop Age 25+ by Edu. AttainmentLess than 9th Grade 6,114 2.03Some High School, No Diploma 6,461 2.14High School Graduate (or GED) 40,590 13.46Some College, No Degree 60,922 20.21Associate's Degree 23,262 7.72Bachelor's Degree 106,485 35.33Master's Degree 46,083 15.29Professional Degree 7,357 2.44Doctorate Degree 4,174 1.392021 Est. Pop Age 25+ by Edu. Attain., Hisp./Lat.High School Diploma 6,259 15.08High School Graduate 7,737 18.64Some College or Associate's Degree 12,486 30.09Bachelor's Degree or Higher 15,017 36.192021 Est. Households by HH IncomeIncome < $15,000 5,325 3.37Income $15,000 - $24,999 4,061 2.57Income $25,000 - $34,999 5,161 3.27Income $35,000 - $49,999 10,868 6.89Income $50,000 - $74,999 18,856 11.95Income $75,000 - $99,999 17,995 11.40Income $100,000 - $124,999 18,453 11.69Income $125,000 - $149,999 16,885 10.70Income $150,000 - $199,999 23,844 15.11Income $200,000 - $249,999 12,794 8.11Income $250,000 - $499,999 15,193 9.63Income $500,000+ 8,399 5.322021 Est. Average Household Income -- 157,692.042021 Est. Median Household Income -- 122,496.452021 Median HH Inc. by Single-Class. Race or Eth.White Alone -- 124,173.61Black or African American Alone -- 104,524.14American Indian and Alaskan Native Alone -- 114,962.63Asian Alone -- 178,958.62Native Hawaiian and Other Pacif ic Islander Alone -- 75,695.12Some Other Race Alone -- 70,142.70Two or More Races -- 115,938.96Hispanic or Latino -- 89,626.23Not Hispanic or Latino -- 127,337.332021 Est. Families by Poverty Status2021 Families at or Above Poverty 121,048 97.042021 Families at or Above Poverty with children 73,573 58.982021 Families Below Poverty 3,687 2.962021 Families Below Poverty with children 2,561 2.05


Pop-Facts® Demographic Snapshot | Education & OccupationTrade Area: Celina Apartments PMA Total Population: 92,027 | Total Households: 157,834

Count %2021 Est. Employed Civilian Population 16+ by Occupation ClassificationWhite Collar 196,405 78.01Blue Collar 27,552 10.94Service and Farming 27,807 11.042021 Est. Workers Age 16+ by Travel Time to WorkLess than 15 Minutes 35,866 16.0615 - 29 Minutes 70,839 31.7230 - 44 Minutes 58,897 26.3845 - 59 Minutes 31,280 14.0160 or more Minutes 26,422 11.832021 Est. Avg Travel Time to Work in Minutes -- 34.702021 Est. Workers Age 16+ by Transp. to Work2021 Est. Workers Age 16+ by Transp. to Work 248,206 100.00Drove Alone 199,075 80.21Carpooled 16,483 6.64Public Transport 1,003 0.40Walked 1,539 0.62Bicycle 184 0.07Other Means 3,484 1.40Worked at Home 26,438 10.652021 Est. Civ. Employed Pop 16+ by Class of Worker2021 Est. Civ. Employed Pop 16+ by Class of Worker 251,764 100.00For-Prof it Private Workers 191,086 75.90Non-Prof it Private Workers) 13,053 5.18Local Government Workers 13,545 5.38State Government Workers 6,535 2.60Federal Government Workers 3,010 1.20Self-Employed Workers 24,178 9.60Unpaid Family Workers 357 0.142021 Est. Civ. Employed Pop 16+ by OccupationArchitecture/Engineering 6,115 2.43Arts/Design/Entertainment/Sports/Media 5,273 2.09Building/Grounds Cleaning/Maintenance 4,041 1.60Business/Financial Operations 24,215 9.62Community/Social Services 2,697 1.07Computer/Mathematical 21,293 8.46Construction/Extraction 6,352 2.52Education/Training/Library 17,907 7.11Farming/Fishing/Forestry 249 0.10Food Preparation/Serving Related 8,732 3.47Healthcare Practitioner/Technician 16,341 6.49Healthcare Support 3,744 1.49Installation/Maintenance/Repair 4,774 1.90Legal 2,236 0.89Life/Physical/Social Science 1,453 0.58Management 40,771 16.19Off ice/Administrative Support 24,826 9.86Production 6,109 2.43Protective Services 4,589 1.82Sales/Related 33,278 13.22Personal Care/Service 6,452 2.56Transportation/Material Moving 10,317 4.102021 Est. Pop Age 16+ by Employment StatusIn Armed Forces 287 0.08Civilian - Employed 251,917 70.27Civilian - Unemployed 8,919 2.49Not in Labor Force 97,356 27.16


Pop-Facts® Demographic Snapshot | MapTrade Area: Celina Apartments PMA Total Population: 477,306| Total Households: 157,834


Leaflet (http://leafletjs.com) | TomTom | Powered by Esri (https://www.esri.com) | USGS, NOAA

Report Details

Name: Pop-Facts® Demographic Snapshot 2021Date / Time: 8/10/2021 3:33:57 PMWorkspace Vintage: 2021

Trade Area

Name Level Geographies

Celina Apartments PMA Census Tract 48085-030202; 48085-030301; 48085-030302; 48085-030303; 48085-030304;48085-030305; 48085-030403; 48085-030404; 48085-030405; 48085-030406;48085-030407; 48085-030408; 48085-030504; 48085-030505; 48085-030506;48085-030507; 48085-030508; 48085-030509; 48085-030510; 48085-030511;48085-030512; 48085-030513; 48085-030515; 48085-030516; 48085-030517;48085-030518; 48085-030519; 48085-030520; 48085-030521; 48085-030522;48085-030523; 48085-030524; 48085-030525; 48085-030526; 48085-030527;48085-030529; 48085-030530; 48085-030531; 48121-020104; 48121-020105;48121-020108; 48121-020109; 48121-020110; 48121-020111; 48121-020112;48121-020113; 48121-020114; 48121-020115; 48121-021515; 48121-021516;48121-021517; 48121-021518; 48121-021519; 48121-021520; 48121-021521;48121-021522; 48121-021523; 48121-021524; 48121-021525; 48121-021526;48121-021527; 48121-021800; 48121-021900

Benchmark


USA Entire US United States

DataSource

Product Provider Copyright

Claritas Pop-Facts® Premier 2021 Claritas ©Claritas, LLC 2021 (https://claritas.easpotlight.com/Spotlight/About/3/2021#289)

SPOTLIGHT Pop-Facts® Premier 2021,including 2000 and 2010 US Census, 2021estimates and 2026 projections

Claritas ©Claritas, LLC 2021 (https://claritas.easpotlight.com/Spotlight/About/3/2021#289)

Pop-Facts® Demographic Snapshot | SummaryTrade Area: Collin County, TX

Population2000 Census 491,6842010 Census 782,3412021 Estimate 1,072,2952026 Projection 1,167,704Population GrowthPercent Change: 2000 to 2010 59.12Percent Change: 2010 to 2021 37.06Percent Change: 2021 to 2026 8.90

Households2000 Census 181,9712010 Census 283,7592021 Estimate 383,2112026 Projection 416,109Household GrowthPercent Change: 2000 to 2010 55.94Percent Change: 2010 to 2021 35.05Percent Change: 2021 to 2026 8.59

Family Households2000 Census 132,2662010 Census 206,7932021 Estimate 279,9082026 Projection 303,903Family Household GrowthPercent Change: 2000 to 2010 56.35Percent Change: 2010 to 2021 35.36Percent Change: 2021 to 2026 8.57


Pop-Facts® Demographic Snapshot | Population & RaceTrade Area: Collin County, TX Total Population: 1,072,295 | Total Households: 383,211

Count %2021 Est. Population by Single-Classification RaceWhite Alone 671,233 62.60Black/African American Alone 115,310 10.75American Indian/Alaskan Native Alone 5,772 0.54Asian Alone 180,995 16.88Native Hawaiian/Pacif ic Islander Alone 848 0.08Some Other Race Alone 59,412 5.54Two or More Races 38,725 3.612021 Est. Population by Hispanic or Latino OriginNot Hispanic or Latino 900,800 84.01Hispanic or Latino 171,495 15.99Mexican Origin 127,930 74.60Puerto Rican Origin 6,132 3.58Cuban Origin 2,219 1.29All Other Hispanic or Latino 35,214 20.532021 Est. Pop by Race, Asian Alone, by CategoryChinese, except Taiwanese 33,441 18.48Filipino 10,352 5.72Japanese 2,547 1.41Asian Indian 83,392 46.07Korean 10,411 5.75Vietnamese 16,359 9.04Cambodian 765 0.42Hmong 318 0.18Laotian 917 0.51Thai 1,015 0.56All Other Asian Races Including 2+ Category 21,478 11.872021 Est. Population by AncestryArab 10,844 1.01Czech 4,635 0.43Danish 2,918 0.27Dutch 8,795 0.82English 77,470 7.22French (Excluding Basque) 18,411 1.72French Canadian 2,956 0.28German 109,252 10.19Greek 2,165 0.20Hungarian 1,986 0.18Irish 76,821 7.16Italian 27,128 2.53Lithuanian 973 0.09Norwegian 7,445 0.69Polish 16,104 1.50Portuguese 1,533 0.14Russian 5,810 0.54Scotch-Irish 10,516 0.98Scottish 20,026 1.87Slovak 767 0.07Sub-Saharan African 18,103 1.69Swedish 7,809 0.73Swiss 1,673 0.16Ukrainian 1,888 0.18United States or American 80,530 7.51Welsh 5,634 0.53West Indian (Excluding Hispanic groups) 2,307 0.21Other ancestries 418,270 39.01Ancestries Unclassif ied 129,526 12.082021 Est. Pop Age 5+ by Language Spoken At HomeSpeak Only English at Home 745,668 74.04Speak Asian/Pacif ic Isl. Lang. at Home 76,425 7.59Speak Indo-European Language at Home 53,358 5.30Speak Spanish at Home 124,628 12.38Speak Other Language at Home 7,043 0.702021 Est. Hisp. or Latino Pop by Single-Class. RaceWhite Alone 98,930 57.69Black/African American Alone 2,485 1.45American Indian/Alaskan Native Alone 1,739 1.01Asian Alone 707 0.41Native Hawaiian/Pacif ic Islander Alone 92 0.05Some Other Race Alone 57,570 33.57Two or More Races 9,972 5.82


Pop-Facts® Demographic Snapshot | Population & RaceTrade Area: Collin County, TX Total Population: 1,072,295 | Total Households: 383,211

Count %2021 Est. Population by SexMale 527,538 49.20Female 544,757 50.802021 Est. Population by AgeAge 0 - 4 65,173 6.08Age 5 - 9 70,586 6.58Age 10 - 14 79,503 7.41Age 15 - 17 49,764 4.64Age 18 - 20 44,043 4.11Age 21 - 24 54,524 5.08Age 25 - 34 129,142 12.04Age 35 - 44 160,919 15.01Age 45 - 54 164,029 15.30Age 55 - 64 126,522 11.80Age 65 - 74 79,207 7.39Age 75 - 84 37,875 3.53Age 85 and over 11,008 1.03Age 16 and over 840,682 78.40Age 18 and over 807,269 75.28Age 21 and over 763,226 71.18Age 65 and over 128,090 11.95Median Age -- 37.84Average Age -- 37.502021 Est. Pop Age 15+ by Marital StatusTotal, Never Married 241,787 28.21Male, Never Married 127,021 14.82Female, Never Married 114,766 13.39Married, Spouse Present 473,394 55.24Married, Spouse Absent 33,686 3.93Widowed 32,697 3.81Male, Widowed 5,789 0.68Female, Widowed 26,908 3.14Divorced 75,469 8.81Male, Divorced 28,765 3.36Female, Divorced 46,704 5.452021 Est. Male Population by AgeMale: Age 0 - 4 33,253 6.30Male: Age 5 - 9 35,991 6.82Male: Age 10 - 14 40,496 7.68Male: Age 15 - 17 25,393 4.81Male: Age 18 - 20 22,789 4.32Male: Age 21 - 24 27,831 5.28Male: Age 25 - 34 63,895 12.11Male: Age 35 - 44 77,711 14.73Male: Age 45 - 54 81,180 15.39Male: Age 55 - 64 62,564 11.86Male: Age 65 - 74 35,960 6.82Male: Age 75 - 84 16,396 3.11Male: Age 85 and over 4,079 0.77Median Age, Male -- 36.92Average Age, Male -- 36.702021 Est. Female Population by AgeFemale: Age 0 - 4 31,920 5.86Female: Age 5 - 9 34,595 6.35Female: Age 10 - 14 39,007 7.16Female: Age 15 - 17 24,371 4.47Female: Age 18 - 20 21,254 3.90Female: Age 21 - 24 26,693 4.90Female: Age 25 - 34 65,247 11.98Female: Age 35 - 44 83,208 15.27Female: Age 45 - 54 82,849 15.21Female: Age 55 - 64 63,958 11.74Female: Age 65 - 74 43,247 7.94Female: Age 75 - 84 21,479 3.94Female: Age 85 and over 6,929 1.27Median Age, Female -- 38.67Average Age, Female -- 38.30


Pop-Facts® Demographic Snapshot | Housing & HouseholdsTrade Area: Collin County, TX Total Population: 1,072,295 | Total Households: 383,211

Count %2021 Est. Households by Household TypeFamily Households 279,908 73.04NonFamily Households 103,303 26.962021 Est. Group Quarters Population2021 Est. Group Quarters Population 4,578 0.432021 HHs By Ethnicity, Hispanic/Latino2021 HHs By Ethnicity, Hispanic/Latino 46,213 12.062021 Est. Family HH Type by Presence of Own Child.Married Couple Family, own children 124,830 44.60Married Couple Family, no own children 104,218 37.23Male Householder, own children 7,902 2.82Male Householder, no own children 6,707 2.40Female Householder, own children 22,875 8.17Female Householder, no own children 13,376 4.782021 Est. Households by Household Size1-Person Household 83,768 21.862-Person Household 113,942 29.733-Person Household 68,446 17.864-Person Household 66,289 17.305-Person Household 31,798 8.306-Person Household 12,234 3.197-or-more-person 6,734 1.762021 Est. Average Household Size -- 2.792021 Est. Households by Number of VehiclesNo Vehicles 9,402 2.451 Vehicle 107,352 28.012 Vehicles 177,433 46.303 Vehicles 63,967 16.694 Vehicles 18,659 4.875 or more Vehicles 6,398 1.672021 Est. Average Number of Vehicles -- 2.002021 Est. Occupied Housing Units by TenureHousing Units, Owner-Occupied 261,031 68.12Housing Units, Renter-Occupied 122,180 31.882021 Owner Occ. HUs: Avg. Length of Residence2021 Owner Occ. HUs: Avg. Length of Residence -- 11.602021 Renter Occ. HUs: Avg. Length of Residence2021 Renter Occ. HUs: Avg. Length of Residence -- 4.902021 Est. Owner-Occupied Housing Units by ValueValue Less Than $20,000 2,173 0.83Value $20,000 - $39,999 1,846 0.71Value $40,000 - $59,999 1,054 0.40Value $60,000 - $79,999 1,411 0.54Value $80,000 - $99,999 1,963 0.75Value $100,000 - $149,999 6,312 2.42Value $150,000 - $199,999 13,751 5.27Value $200,000 - $299,999 50,685 19.42Value $300,000 - $399,999 65,767 25.20Value $400,000 - $499,999 49,274 18.88Value $500,000 - $749,999 44,599 17.09Value $750,000 - $999,999 15,010 5.75Value $1,000,000 - $1,499,999 4,823 1.85Value $1,500,000 - $1,999,999 1,317 0.50Value $2,000,000 or more 1,046 0.402021 Est. Median All Owner-Occupied Housing Value -- 377,140.99


Pop-Facts® Demographic Snapshot | Housing & HouseholdsTrade Area: Collin County, TX Total Population: 1,072,295 | Total Households: 383,211

Count %2021 Est. Housing Units by Units in Structure1 Unit Attached 9,928 2.471 Unit Detached 278,288 69.332 Units 2,569 0.643 to 4 Units 7,701 1.925 to 19 Units 49,281 12.2820 to 49 Units 18,266 4.5550 or More Units 28,029 6.98Mobile Home or Trailer 7,050 1.76Boat, RV, Van, etc. 290 0.072021 Est. Housing Units by Year Structure BuiltBuilt 2014 or Later 84,864 21.14Built 2010 to 2013 24,358 6.07Built 2000 to 2009 98,991 24.66Built 1990 to 1999 88,000 21.92Built 1980 to 1989 59,539 14.83Built 1970 to 1979 28,930 7.21Built 1960 to 1969 8,640 2.15Built 1950 to 1959 3,589 0.89Built 1940 to 1949 1,865 0.47Built 1939 or Earlier 2,626 0.652021 Housing Units by Year Structure Built2021 Est. Median Year Structure Built -- 2,000.732021 Est. Households by Presence of People Under 182021 Est. Households by Presence of People Under 18 164,685 42.98Households with 1 or More People under Age 18Married Couple Family 129,087 78.38Other Family, Male Householder 9,078 5.51Other Family, Female Householder 25,599 15.54NonFamily Household, Male Householder 726 0.44NonFamily Household, Female Householder 195 0.122021 Est. Households with No People under Age 18Households with No People under Age 18 218,526 57.02Households with No People under Age 18Married Couple Family 99,963 45.74Other Family, Male Householder 5,513 2.52Other Family, Female Householder 10,662 4.88NonFamily, Male Householder 48,041 21.98NonFamily, Female Householder 54,347 24.87


Pop-Facts® Demographic Snapshot | Affluence & EducationTrade Area: Collin County, TX Total Population: 1,072,295 | Total Households: 383,211

Count %2021 Est. Pop Age 25+ by Edu. AttainmentLess than 9th Grade 23,807 3.36Some High School, No Diploma 20,095 2.84High School Graduate (or GED) 109,654 15.47Some College, No Degree 134,883 19.03Associate's Degree 50,730 7.16Bachelor's Degree 233,531 32.95Master's Degree 104,643 14.77Professional Degree 18,704 2.64Doctorate Degree 12,655 1.792021 Est. Pop Age 25+ by Edu. Attain., Hisp./Lat.High School Diploma 26,047 27.82High School Graduate 20,019 21.38Some College or Associate's Degree 20,359 21.75Bachelor's Degree or Higher 27,193 29.052021 Est. Households by HH IncomeIncome < $15,000 18,392 4.80Income $15,000 - $24,999 14,826 3.87Income $25,000 - $34,999 18,169 4.74Income $35,000 - $49,999 31,676 8.27Income $50,000 - $74,999 54,804 14.30Income $75,000 - $99,999 47,375 12.36Income $100,000 - $124,999 43,293 11.30Income $125,000 - $149,999 36,842 9.61Income $150,000 - $199,999 46,880 12.23Income $200,000 - $249,999 23,834 6.22Income $250,000 - $499,999 29,699 7.75Income $500,000+ 17,421 4.552021 Est. Average Household Income -- 139,405.002021 Est. Median Household Income -- 103,507.382021 Median HH Inc. by Single-Class. Race or Eth.White Alone -- 106,564.53Black or African American Alone -- 79,388.70American Indian and Alaskan Native Alone -- 109,862.95Asian Alone -- 127,385.13Native Hawaiian and Other Pacif ic Islander Alone -- 81,033.50Some Other Race Alone -- 58,200.03Two or More Races -- 87,223.76Hispanic or Latino -- 70,924.07Not Hispanic or Latino -- 108,540.012021 Est. Families by Poverty Status2021 Families at or Above Poverty 267,271 95.482021 Families at or Above Poverty with children 146,486 52.332021 Families Below Poverty 12,637 4.512021 Families Below Poverty with children 8,764 3.13


Pop-Facts® Demographic Snapshot | Education & OccupationTrade Area: Collin County, TX Total Population: 491,684 | Total Households: 383,211

Count %2021 Est. Employed Civilian Population 16+ by Occupation ClassificationWhite Collar 429,878 75.20Blue Collar 67,982 11.89Service and Farming 73,766 12.902021 Est. Workers Age 16+ by Travel Time to WorkLess than 15 Minutes 100,448 19.4615 - 29 Minutes 178,722 34.6330 - 44 Minutes 125,408 24.3045 - 59 Minutes 61,099 11.8460 or more Minutes 50,469 9.782021 Est. Avg Travel Time to Work in Minutes -- 32.002021 Est. Workers Age 16+ by Transp. to Work2021 Est. Workers Age 16+ by Transp. to Work 564,972 100.00Drove Alone 455,675 80.65Carpooled 37,305 6.60Public Transport 6,384 1.13Walked 4,735 0.84Bicycle 839 0.15Other Means 7,701 1.36Worked at Home 52,333 9.262021 Est. Civ. Employed Pop 16+ by Class of Worker2021 Est. Civ. Employed Pop 16+ by Class of Worker 571,626 100.00For-Prof it Private Workers 432,874 75.73Non-Prof it Private Workers) 27,793 4.86Local Government Workers 32,599 5.70State Government Workers 14,442 2.53Federal Government Workers 6,909 1.21Self-Employed Workers 56,145 9.82Unpaid Family Workers 864 0.152021 Est. Civ. Employed Pop 16+ by OccupationArchitecture/Engineering 19,388 3.39Arts/Design/Entertainment/Sports/Media 11,772 2.06Building/Grounds Cleaning/Maintenance 14,930 2.61Business/Financial Operations 49,858 8.72Community/Social Services 6,791 1.19Computer/Mathematical 48,100 8.41Construction/Extraction 17,485 3.06Education/Training/Library 41,020 7.18Farming/Fishing/Forestry 406 0.07Food Preparation/Serving Related 24,283 4.25Healthcare Practitioner/Technician 35,220 6.16Healthcare Support 9,354 1.64Installation/Maintenance/Repair 12,182 2.13Legal 5,995 1.05Life/Physical/Social Science 3,474 0.61Management 80,723 14.12Off ice/Administrative Support 59,005 10.32Production 14,292 2.50Protective Services 9,198 1.61Sales/Related 68,532 11.99Personal Care/Service 15,595 2.73Transportation/Material Moving 24,023 4.202021 Est. Pop Age 16+ by Employment StatusIn Armed Forces 508 0.06Civilian - Employed 571,252 67.95Civilian - Unemployed 21,096 2.51Not in Labor Force 247,826 29.48


Pop-Facts® Demographic Snapshot | MapTrade Area: Collin County, TX Total Population: 1,072,295| Total Households: 383,211


Leaflet (http://leafletjs.com) | TomTom | Powered by Esri (https://www.esri.com) | USGS, NOAA

Report Details

Name: Pop-Facts® Demographic Snapshot 2021Date / Time: 8/10/2021 10:55:50 AMWorkspace Vintage: 2021

Trade Area


Collin County, TX County Collin County, TX

Benchmark


USA Entire US United States

DataSource

Product Provider Copyright

Claritas Pop-Facts® Premier 2021 Claritas ©Claritas, LLC 2021 (https://claritas.easpotlight.com/Spotlight/About/3/2021#289)

SPOTLIGHT Pop-Facts® Premier 2021,including 2000 and 2010 US Census, 2021estimates and 2026 projections

Claritas ©Claritas, LLC 2021 (https://claritas.easpotlight.com/Spotlight/About/3/2021#289)


DEVELOPER-PROVIDED INFORMATION

Oklahoma Dr. Celina, TXBUDGET ESTIMATE - PERMIT DRAWINGS

Includes: Site, Appliances, Pool, Window Blinds, Low Volt., Access Control, & Building

183 Units Hard CostsTotal Hard Costs Net Rentable Square Footage 163,992 sf

Total # of Units Gross Balconies 15,050 sf

Net Rentable Cost per foot Lobby, Gym, Mail & Leasing 6,370 sf

Cost per Unit Breezeways/Hallways 29,900 sf

Net Rentable Square Footage Total Constructible Area 215,312 sf

Efficiency Schedule: 16.0 moPhase Description SUB Current Trade $/sqft

QTY UM UNIT TOTAL Total Total

01000 General Requirements & C.O.W. 1,234,200 5.73

General Conditions & On Site Staff 16 MO 70,000 1,120,000 1,120,000 5.20

Communications Conduit 1 ls 30,000.00 30,000 30,000 0.14

Gas Delivery 1 ls 15,000.00 15,000 15,000 0.07

Power Delivery 1 ls 40,000.00 40,000 40,000 0.19

SWPPP 16 mo 1,200 19,200 19,200 0.09

Tree Protection 16 mo 625 10,000 10,000 0.05

02300 SITEWORK 360,671 1.68

Select Fill 1' 5,506 cy 20 110,111 110,111 0.51

Earthwork 9' moisture conditioning 6.26 acres 40,000 250,560 250,560 1.16

No haul off included in price 0 0 -

02301 OFFSITEWORK includes Driveways 106,089 0.49

Traffic Control 1 ls 15,000.00 15,000 15,000 0.07

Sunset Rd. Paving & Stiping 10,495 sf 7.25 76,089 76,089 0.35

Lift Station not in budget 0 N/A 0.00 0 0 -

Approaches 1 ls 15,000.00 15,000 15,000 0.07

02500 UTILITIES 497,005 2.31

Water -

12" Water Line 2,500 lf 60 150,000 150,000 0.70

8" Water Line 1,192 lf 58 69,136 69,136 0.32

2" Water Line(Fire Line Only) 200 lf 45 9,000 9,000 0.04

Utility Select Backfill 9,132 lf 2 18,264 18,264 0.08

Tapping Sleeve & Valve 2 qty 3,000 6,000 6,000 0.03

Fire Hydrants 3 qty 1,500 4,500 4,500 0.02

Fireline Riser 3 qty 2,500 7,500 7,500 0.03

Concrete Encasement 150 lf 30 4,500 4,500 0.02

Excluded 2" Domestic Meter w/ Vault(Combo) 0 ls 0 0 0 -

Excluded 2" Irrigation Meter 0 ls 0 0 0 -

Sanitary Sewer -

6" Sanitary Sewer Line 2,035 LF 45 91,575 91,575 0.43

Oil / Sump Pump/ Sand Separator(depending

on elevators) 3 qty 2,200 6,600 6,600 0.03

Manholes 6 est. 2,000 12,000 12,000 0.06

Gas -

Propane Tank and/or Natural Gas 1 allow 5,000 5,000 5,000 0.02

Storm -

N/A 12" HDPE 500 lf 20.00 10,000 10,000 0.05

15" HDPE 220 lf 24.00 5,280 5,280 0.02

18" HDPE 1,015 lf 26.00 26,390 26,390 0.12

24" RCP 670 lf 28.00 18,760 18,760 0.09

30" HDPE 800 lf 30.00 24,000 24,000 0.11

Excluded Pond Pump 0 0.00 0 0 -

Catch Basin 10 qty 2,000.00 20,000 20,000 0.09

Detention Pond Rip Rap 1 ls 8,500.00 8,500 8,500 0.04

02900 LANDSCAPING 377,600 1.75

Demolition of Existing Fence 828 ft 2.50 2,070 2,070 0.01

Trees 135 ea 450.00 60,750 60,750 0.28

Shrubs and Groundcover 320 ea 90.00 28,800 28,800 0.13

Inorganic Rock (4") 12,000 sf 2.00 24,000 24,000 0.11

Weed Barrier, Mulch & Edging 20,000 sf 1.50 30,000 30,000 0.14

Irrigation - Heads 73,000 sf 1.10 80,300 80,300 0.37

Drip Irrigation 10,000 sf 2.25 22,500 22,500 0.10

Sleeving 400 lf 7.50 3,000 3,000 0.01

76.16%

134.81$

120,807.01$

183

8/10/2021

163,992

22,107,682$

Page 1 of 4

Phase Description SUB Current Trade $/sqft


6" Topsoil Import 750 cy 22.00 16,500 16,500 0.08

Sod 74,500 sf 1.50 111,750 111,750 0.52

02700 SITE SURFACING 924,108 4.29

Concrete Paving 6"(Parking Lot Only) 135,000 sf 5.25 708,750 708,750 3.29

Approaches 2 qty 15,000.00 30,000 30,000 0.14

Misc Concrete 2,500 sf 4.00 10,000 10,000 0.05

Concrete Dumpster Pads (added 4 more) 3 qty 4,000.00 12,000 12,000 0.06

Sidewalk south property line 10,150 sf 3.75 38,063 38,063 0.18

Sidewalks General 17,812 sf 3.75 66,795 66,795 0.31

Boardwalk Sidewalk Along the river(Concrete) 15,600 sf 3.75 58,500 58,500 0.27

HVAC Curbs (N/A, going on roof) 0 N/A 0.00 0 0 -

w/ paving Curb & Gutter 0 lf 19.00 0 0 -

02750 MISC. SITE 157,262 0.73

Striping 135,000 sf 0.15 20,250 20,250 0.09

Light Pole Bases 12 ea 1,200.00 14,400 14,400 0.07

Flagpoles 3 ea 4,000.00 12,000 12,000 0.06

Playground Equipment 0 ls 35,000.00 0 0 -

Handicap & Directional Signage 5 ea 250.00 1,250 1,250 0.01

Boardwalk Retaining Wall 300 lf 85.00 25,500 25,500 0.12

Pavers 3,600 sf 12.00 43,200 43,200 0.20

Pergolas & Pavilion 2 qty 15,000.00 30,000 30,000 0.14

Termite Control 53,308 sf 0.20 10,662 10,662 0.05

03000 BUILDING CONCRETE 981,720 4.56

Unit Floor Leveler 140,733 sf 2.40 337,759 337,759 1.57

Building Slab 53,308 sf 9.20 490,434 490,434 2.28

Breezeway Lightweight Concrete 19,191 sf 8.00 153,527 153,527 0.71

04000 MASONRY 1,068,000 4.96

Revise EIFS & Stone Facade 1 ls 1,068,000.00 1,068,000 1,068,000 4.96

05000 STRUCTURAL & MISC. STEEL 303,975 1.41

Structural Steel(Amenity & Leasing Center) 10 tn 8,000 80,000 80,000 0.37

Stairs & Rails 24 fl 4,000 96,000 96,000 0.45

Balcony Rails 183 qty 345 63,135 63,135 0.29

Misc Steel 1 ls 35,000 35,000 35,000 0.16

Pool, Dog Park, & Playground Fences 528 lf 30 15,840 15,840 0.07

N/A Site Fence without columns 0 0 0 0 -

Bollards 16 qty 250 4,000 4,000 0.02

N/A Sliding Gates(Motorized) 0 qty 0 0 -

Dumpster Gates 4 dbls 2,500.00 10,000 10,000 0.05

05700 ORNAMENTAL METALS 7,500 0.03

Ornamental Handrails at Amenity Mezzanine 50 lf 150.00 7,500 7,500 0.03

06000 WOODWORK 5,534,511 25.70

Framing Scope (see bid clarification) 215,312 sf 23.00 4,952,176 4,952,176 23.00

Common Area Millwork 1 ls 30,000 30,000 30,000 0.14

Countertops & Sinks 183 qty 1,725 315,675 315,675 1.47

Rough Carpentry 1 ls 50,000 50,000 50,000 0.23

Finish Millwork(Cabinet Material Only) 183 qty 1,020.00 186,660 186,660 0.87

07100 WEATHERPROOFING 46,262 0.21

Site Sealants 1 ls 20,000.00 20,000 20,000 0.09

Masonry Control Joints 3 bldg 2,200.00 6,600 6,600 0.03

Building Sealants 3 bldg 3,000.00 9,000 9,000 0.04

Vapor Barrier Under Slab 53,308 sf 0.20 10,662 10,662 0.05

07520 ROOFING 536,930 2.49

HVAC Chase and Pads 183 QTY 100.00 18,300 18,300 0.08

TPO 60 mil, Mech fastened, 4 1/2", tapered) 533 sqre 750.00 399,810 399,810 1.86

Roofing Gutters (6") Misc. - Not Interior Drains 3,240 lf 18.00 58,320 58,320 0.27

Misc. Metal at Roof 3 qty 8,500.00 25,500 25,500 0.12

ACM Metal Panels 1 ls 35,000.00 35,000 35,000 0.16

07810 FIREPROOFING 15,000 0.07

Fire Caulking at Elevator Shafts 3 qty 5,000 15,000 15,000 0.07

08100 DOORS, FRAMES, HARDWARE 570,000 2.65

Doors, Frames, Hardware 1,190 ea 400 475,800 475,800 2.21

Egress Doors at Stairwells(access control) 6 ea 550 3,300 3,300 0.02

Balcony Doors 183 ea 300 54,900 54,900 0.25

Access Doors & Roof Access 6 ls 6,000 36,000 36,000 0.17

08800 GLASS & GLAZING 546,290 2.54

Mirrors 320 qty 80.00 25,620 25,620 0.12

Page 2 of 4



Glass Shower Enclosures 183 qty 490.00 89,670 89,670 0.42

Leasing, Lobby, Gym Storefront 1 ls 65,000.00 65,000 65,000 0.30

Windows(From Building Facades) 915 qty 400.00 366,000 366,000 1.70

09250 DRYWALL 1,636,371 7.60

Unit Drywall(area SF for budget) w/ insulation 215,312 sf 6.50 1,399,528 1,399,528 6.50

Exterior Sheathing 215,312 sf 0.60 129,187 129,187 0.60

Gypsum Ceiling 215,312 sf 0.50 107,656 107,656 0.50

N/A Acoustical Ceiling 2x2 0 sf 4.25 0 0 -

09300 FLOORING 628,632 2.92

Unit LVT(from Unit Breakdown) 155,757 sf 2.10 327,090 327,090 1.52

Misc. Specialty Flooring 1 ls 40,000.00 40,000 40,000 0.19

Lobby, Gym, Mail & Leasing 6,370 sf 10.50 66,885 66,885 0.31

Ceramic Tile Floors 8,235 sf 5.50 45,293 45,293 0.21

Kitchen Backsplashes 3,294 sf 7.00 23,058 23,058 0.11

Tub & Shower Surrounds Tile 265 qty 476.00 126,307 126,307 0.59

09900 PAINTING 473,686 2.20

Tape/Bed/Texture Painting 215,312 sf 2.20 473,686 473,686 2.20

10000 SPECIALTIES 259,625 1.21

Corner Guards 1 ls 2,500 2,500 2,500 0.01

Unit & Interior Signage 1 allow 40,000 40,000 40,000 0.19

Exterior Building Signage - Allowance 1 ls 20,000 20,000 20,000 0.09

Fire Extinguishers & Cabinets 24 ea 50 1,200 1,200 0.01

Fire Extinguishers in units 183 ea 75.00 13,725 13,725 0.06

Mail boxes 1 ls 28,000.00 28,000 28,000 0.13

Amazon Hub 1 ls 19,000.00 19,000 19,000 0.09

Overhead Garage Doors 0 qty 800.00 0 0 -

Carports 104 spts 1,300.00 135,200 135,200 0.63

11000 EQUIPMENT 885,500 4.11

Appliances in Units(Stove, Vent Hood,

Refrigerator, Dishwasher, Sink Disposal,

Washer & Dryer) 183 units 3,000 549,000 549,000 2.55

Lobby Appliances(Microwave, Refrigerator,

Dishwasher, Sink Disposal) 1 allow 6,500 6,500 6,500 0.03

Leasing Office Appliances 1 allow 1,000 1,000 1,000 0.00

Fireplaces 2 qty 13,000 26,000 26,000 0.12

Pool 1 allow 300,000 300,000 300,000 1.39

Knox Box 6 ea 500 3,000 3,000 0.01

12000 FURNISHINGS 80,080 0.37

Dog Park Accessories 0.5 allow 28,000.00 14,000 14,000 0.07

Outdoor Amenities 0.5 allow 25,000.00 12,500 12,500 0.06

Window Blinds 915 windows 52.00 47,580 47,580 0.22

Site Benches 4 ea 1,500.00 6,000 6,000 0.03

14000 ELEVATOR 375,000 1.74

Elevators 3 ea 125,000.00 375,000 375,000 1.74

15000 MECHANICAL 1,722,664 8.00

HVAC 170,362 sf 4.00 681,448 681,448 3.16

Plumbing 170,362 sf 4.75 809,220 809,220 3.76

Water Submetering 183 unit 150.00 27,450 27,450 0.13

Fire Sprinkler - Wet Pipe with Pump 215,312 sf 0.95 204,546 204,546 0.95

NIB Fire Pump (Confirm flow test with EOR) ea 50,000 0 0 -

16000 ELECTRICAL 1,415,060 6.57

Electrical 215,312 sf 4.50 968,904 968,904 4.50

Light Fixture Package 183 un 1,500.00 274,500 274,500 1.27

Amenity Center & Leasing Lighting 1 allow 40,000.00 40,000 40,000 0.19

Fire Alarm 215,312 sf 0.50 107,656 107,656 0.50

Site Light Poles 12 ea 2,000.00 24,000 24,000 0.11

17000 COMMUNICATIONS 110,000 0.51

Data / Communications Wiring 1 ls 45,000 45,000 45,000 0.21

Excluded AV Equipment 0 ls 0 0 0 -

Security(CCTV) & Access Control 1 allow 65,000 65,000 65,000 0.30

SUBTOTAL 20,855,810 20,855,810 20,853,740 96.86

-

SUBTOTAL DIRECT COST 20,855,810 96.86

Labor Burden 30.00% 0 -

Sales Tax on Materials included

Page 3 of 4



Builder's Risk Insurance (by Owner) if needed add 1.2% 16 mo 183,531 -

General Liability Insurance add back .629% if needed 0 -

Umbrella Liability Insurance add back .086% if needed 0 -

Owner's Protective Liability Ins. .045% if needed 9,488 0.04

Pollution Protective .015% if needed 0 -

ESTIMATE CONTINGENCY 0.00% 0 -

Bond 1.00% 208,558

SUBTOTAL 21,257,387 98.73

GC Fee 4.00% 850,295 3.95

TOTAL CONSTRUCTION COST 22,107,682 102.68

Clarifications

1 Excludes design costs.

2 Excludes rock excavation.

3 Excludes permit fees.

4 Includes appliances with washer and dryer in price.

5 Excludes FF&E.

6 Includes allowance for decorative light fixtures.

7 Excludes permanent utility costs after CO.

8 Includes temp utility costs during construction

9 Includes security guards during framing.

10 Excluded fire or water booster pump.

11 Excluded motorized gates or perimeter fence per city no fence or gate required.

12 AV Equipment in operations budget.

13 Energy Inspections in soft cost budget.

14 Lab Testing in soft cost budget.

15 Includes unit signage allowance.

16 Fire Extinguishers in Units included.

17 Minimal dirt import included.

18 Excludes meter & tap fees.

19 Lumber is priced assuming lumber drops below $1,000 per 1000 bf.

Page 4 of 4

Last Modification Date: 8/10/21

S. Oklahoma DriveCelina, TX

PROJECT NAME AND LOCATION OPERATING EXPENSES AND SALES ASSUMPTIONS EQUITY ASSUMPTIONS ADDITIONAL INPUTSProject Name Resi Cap 5.00% N/A Cap 5.00% Clos. Costs Contributions LP GP Product InformationProject Location Income Forward 12 Expenses Forward 12 1.00% Equity Contributions (%) 0.0% 100.0% Region Texas

Unadjusted Adjustments Sales NOI Total Equity $1,526,625 $0 $1,526,625 Product Type SuburbanPROJECT DATES AND TIMING Residential Rent $4,274,463 $0 $4,274,463 Construction Type V

Land Closing Date Oct-21 N/A Rent 0 0 0 Preferred Return LP GP Mixed-Use Component N/APreconstruction Start Oct-21 Total Income $4,274,463 $4,274,463 Preferred Return 0.00% 0.00% Permanent Loan Terms and SizingConstruction Start Oct-21 Controllable Expenses Pref and Hurdle Compounding Rate Annually Loan Underwriting Capitalization Rate 6.00%Months Until First Lease/Opening 13 months Nov-22 Salaries & Wages $356,526 $0 $356,526 Return Equity or Pref First? Pref Amortization 25 yearsConstruction Period/Final Units 16 months Jan-23 Utilities 182,315 0 182,315 Periods per Year 12Stabilized Hold Period/Stabilization 120 months Jul-23 Repairs & Maintenance 40,514 0 40,514 Hurdles LP GP Funding Fee 0.00%Total Project Months/Divestment 142 months Jul-33 Mkting & Resi Services 52,669 0 52,669 Cash Flow Split Up to Hurdle 1 0.0% 100.0% Loan Sizing Calculations

Office & Admin 46,592 0 46,592 Hurdle 1 OFF 12.0% 12.0% Underwriting NOI $1,860,528FINANCING ASSUMPTIONS Non-Controllable Expenses Cash Flow Split Up to Hurdle 2 70.0% 30.0% Debt Service Constant 6.01%

Construction Loan Management Fees $117,548 2.75% $117,548 Hurdle 2 OFF 16.0% 16.0% Income Available for Debt Service $1,431,175Loan Balance/LTC $29,005,866 95.0% Property Tax 1,111,557 2.20% 1,020,049 Cash Flow Split Up to Hurdle 3 60.0% 40.0% Imputed Loan Amount (LTV) $24,807,040Average Interest Rate 4.25% Insurance 64,823 0 64,823 Hurdle 3 OFF 20.0% 20.0% Imputed Loan Amount (DSCR) $23,823,212

Permanent Loan CapEx 0 0 0 Cash Flow Split Up to Hurdle 4 60.0% 40.0% Assessment RatiosPermanent Financing Attained? Y CAM 42,540 0 42,540 Hurdle 4 OFF 18.0% 18.0% Land Cost 100%Months Post Stabilization 9 months Contingency 30,386 0 30,386 Residual Profit Splits 50.0% 50.0% Hard Cost 100%Financing Date Apr-24 Total Expenses $2,045,469 $1,953,962Interest Only? N Residential NOI $2,320,501 RETURNS ANALYSIS Professional Fees BudgetInterest Rate 3.50% N/A NOI 0 Residual Total $ / Unit $ / Resi SF Legal Fees $15,000Loan Sizing Constraints 80% LTV 1.30x DSCR Total Sales NOI $2,320,501 Gross Sales Price $46,410,021 $253,607 $283.00 Civil Engineer 136,517Loan Balance $23,823,212 Sales Price $46,410,021 Gross Profit $15,877,531 $86,762 $96.82 Landscape Architect 54,000

Gross Profit Margin 52.0% Tax Returns 15,000PROJECT COSTS Input Type Input Total $ / Unit $ / Resi SF Timing Manual Date Architect/ Design 395,000

Land Project Returns IRR Profits Multiple Construction Manager 300,000Land Cost Total 4,321,152$ $4,321,152 $23,613 $26.35 Once (Closing) NA Unlevered Cash Flows 9.10% $37,113,917 2.27x Lab Testing 35,000Brokerage Commission Total 0 0 0 0.00 Once (Closing) NA Levered Cash Flows 32.98% $25,935,763 17.99x Envelope Inspections 0Equity Funding Fee Total 0 0 0 0.00 Once (Closing) NA Waterproofing Consultant 0Closing Credit Total 0 0 0 0.00 Once (Closing) NA Partner Returns IRR Profits Multiple Other Consultants and Legal Fees 0

Total Land Costs $4,321,152 $23,613 $26.35 LP Cash Flows #DIV/0! #DIV/0! #DIV/0! Contingency 50,000Hard Costs GP Cash Flows N/A #DIV/0! N/A Total $1,000,517

Residential Construction Cost $ / Resi SF $134.81 $22,107,762 $120,807 $134.81 Draw Curve NAN/A Construction Cost $ / Retail SF 0.00 0 0 0.00 Draw Curve NA Ratios ROC1 ROE2 DSCR3 Predevelopment | Property Setup BudgetDeveloper Contingency Total 100,000 100,000 546 0.61 Draw Curve NA Untrended 5.98% 38.84% 1.31x Due Diligence $15,000

Total 0 0 0.00 Draw Curve NA Stabilized 5.59% 31.13% 1.23x Capital Markets M/E 8,000Total 0 0 0 0.00 Draw Curve NA Adjusted Sales 7.60% 71.25% 1.67x Developer Travel 5,000

Total Hard Costs $22,207,762 $121,354 $135.42 (1) Return on Cost: NOI / Total Project Costs Project Admin 10,000Soft Costs (2) Return on Equity: (NOI - Interest) / Initial Equity FF&E (Model, Leasing Office, Gym) 288,486

Title, Closing Total $75,000 $75,000 $410 $0.46 Once (Closing) NA (3) Debt Service Coverage Ratio: NOI / Total Construction Loan Interest Property Branding 75,000Taxes Prior to Opening Mil Rate 2.198% 171,322 936 1.04 Determined by Market Website 5,800Professional Fees Total 1,000,517 1,000,517 5,467 6.10 Once (Closing) NA OTHER ASSUMPTIONS Maintenance Setup 5,000Inspecting Engineer Total 12,000 12,000 66 0.07 Spread Equally NA Miscellaneous Club/Amenity/Setup 15,000Property Set-up Total 434,286 434,286 2,373 2.65 Once (Closing) NA Land Value/Density/Site Area $8.00 psf 15 units/acre 12.40 acres Office Setup 2,000Operating Deficit Total 330,412 330,412 1,806 2.01 Spread Equally NA Equity Funding Fee 1.00% Contingency 5,000Loan Costs % of Loan 0 0 0.00 Once (Closing) NA Preconstruction Costs 3.0% Total $434,286Developer Fee % of Cost 0.00% 0 0 0.00 75% Upfront NA Taxable Value Growth (Start/Rate) Jan Post Compl. 7.0%N/A Tenant Improvements Total 0 0 0 0.00 Once (Manual) Nov-22 Pre-Purchase Assessed Value $4,321,152N/A Leasing Commissions Total 0 0 0 0.00 Once (Manual) Nov-22 Renewal Rate (Market/Affordable) 60.0% 75.0%City Fees(Impact, Permit, Taps) Total 563,000 563,000 3,077 3.43 Draw Curve NA Management Fees HVCRE ASSUMPTIONSContingency Total 25,000 25,000 137 0.15 Once (Closing) NA Fee on Gross Revenue (Lease-Up/Stabilized) 2.75% 2.75% Required DSCR (Multiple) 1.30xAsset Management Fee % of Cost 0.00% 0 0 0.00 Spread Equally NA Minimum Management Fee 2.75% Rate Used for DSCR 3.50%

% of Loan 0.00% 0 0 0.00 Once (Closing) NA % of Stabilized Income Applied to Minimum Fee 75% NOI Lookback Dates Trailing 90Rollback Taxes Total 125,000 125,000 683 0.76 Once (Closing) NA Management Fee Floor $8,250Project Management Overhead Total 40,000 40,000 219 0.24 Once (Closing) NA Months Minimum Management Fee In Effect 11 Calculated Debt Service $1,562,992

Total 0 0 0 0.00 Once (Closing) NA Operating Expense Ratios During Pre-Opening Implied Stabilized NOI $2,031,889Total Soft Costs $2,776,537 $15,172 $16.93 3 Months Prior to Opening 25%

TOTAL LAND / HARD / SOFT COSTS $29,305,451 $160,139 $178.70 2 Months Prior to Opening 45% TAX ASSUMPTIONSInterest Expense $1,388,885 $7,590 $8.47 1 Month Prior to Opening 65% CITY OF CELINA 0.645

Less Operations Offset (161,846) (884) (0.99) COLLIN COUNTY 0.181Net Interest Reserve $1,227,039 $6,705 $7.48 COLLIN COUNTY COLLEGE 0.081

TOTAL PROJECT COSTS $30,532,490 $166,844 $186.18 CELINA ISD 1.549Possible Tax Reduction (0.258)

0.0002.198

S. Oklahoma DriveCelina, TX

183 UNITS

S. Oklahoma Drive: NOI InputS. Oklahoma DriveCelina, TX

MARKET UNIT MIX ANNUAL TOTAL OPERATING EXPENSESUnit # of Unit Market Market Total Income Income Operating Input Lease-up Total Per Per Adjustments Type Units Size (SF) Rent / SF Rent / Unit Income Per Unit Per Resi Expenses Type Expenses Expenses Unit Resi SF to Stabilized

Three Bedroom 4 1,349 $1.50 $2,024 $97,128 $531 $0.59 Controllable ExpensesTwo Bedroom B4 2 1,180 $1.60 $1,888 $45,312 $248 $0.28 Salaries & Wages $ / Resi SF $1.72 $282,066 $1,541 $1.72 $0.04 / Resi SFTwo Bedroom B3 4 1,071 $1.60 $1,714 $82,253 $449 $0.50 Utilities $ / Resi SF 0.80 131,194 717 0.80 0.10 / Resi SFTwo Bedroom B2 12 1,036 $1.60 $1,658 $238,694 $1,304 $1.46 Repairs & Maintenance$ / Resi SF 0.15 24,599 134 0.15 0.05 / Resi SFTwo Bedroom B1-HC 4 1,013 $1.60 1,621 77,798 425 0.47 Mkting & Resi Services$ / Resi SF 0.45 73,796 403 0.45 -0.19 / Resi SFTwo Bedroom B1 82 1,013 $1.60 1,621 1,594,867 8,715 9.73 Office & Admin $ / Resi SF 0.20 32,798 179 0.20 0.03 / Resi SFOne Bedroom A3 4 770 $1.60 1,232 59,136 323 0.36 Non-Controllable Expenses $544,453 $2,975 $3.32One Bedroom A2 22 765 $1.65 1,262 333,234 1,821 2.03 Management Fees % of Income 2.75% $86,137 $471 $0.53One Bedroom A1 33 700 $1.65 1,155 457,380 2,499 2.79 Property Tax Calculation 582,525 582,525 3,183 3.55Efficiency 16 587 $1.75 1,027 197,232 1,078 1.20 Insurance $ / Resi SF 0.32 52,477 287 0.32 $0.00 / Resi SF

0 0 0 0.00 CapEx $ / Resi SF 0.00 0 0 0.00 0.05 / Resi SF0 0 0 0.00 CAM $ / Resi SF 0.15 24,599 134 0.15 0.06 / Resi SF

TOTAL 183 896 $1.62 $1,449 $3,183,035 $17,394 $19.41 Contingency $ / Resi SF 0.10 16,399 90 0.10 0.05 / Resi SFAFFORDABLE UNIT MIX ANNUAL TOTAL TOTAL $1,306,591 $7,140 $7.97

Unit # of Unit Effective Effective Total Income Income Stabilized Expenses --> $8.15Type Units Size (SF) Rent / SF Rent / Unit Income Per Unit Per Resi SF

Enter Unit Type 0 0 $0.00 $0 $0 $0 $0.00Enter Unit Type 0 0 0.00 0 0 0 0.00

TOTAL 0 0 $0.00 $0 $0 $0 $0.00 NET OPERATING INCOME / RETURN ON COSTTOTAL 183 163,992 $3,183,035 $17,394 $19.41 Lease-Up (Untrended) Stabilized (Trended)

AVERAGE 896 $1.62 $1,449 Total Per Unit Per SF Total Per Unit Per SFResidential Income (Less Vacancy)$3,023,883 $16,524 $18.44 $2,943,749 $16,086 $17.95

N/A DETAIL ANNUAL TOTAL Other Income (Less Vacancy) 108,357 592 0.66 100,201 548 0.61Size (SF) Rent / SF Escalation Escalation Total Income Income N/A Income (Less Vacancy) 0 0 0.00 0 0 0.00

Lease TermOccupancy Date Date Income Per Unit Per Resi SF Total Income $3,132,240 $17,116 $19.10 $3,043,951 $16,634 $18.560 $0.00 $0.00 $0.00 $0 $0 $0.00 Total Expenses 1,306,591 7,140 7.97 1,335,937 7,300 8.15

Space 10.0 years Nov-22 Nov-27 Nov-32 N/A Net Operating Income $1,825,649 $9,976 $11.13 $1,708,013 $9,333 $10.421 Brokerage Commission: 0.00% $0 Return on Cost 5.98% 5.59%

TIA (psf): $0.00 $00 $0.00 $0.00 $0.00 $0 $0 $0.00 RENT GROWTH / EXPENSE INFLATION

Space 0.0 years Nov-22 Nov-27 Nov-32 N/A Market Growth Start: Today Opening 2023 2024 2025 2026+2 Brokerage Commission: 0.00% $0 Units Oct-22 Oct-22 Nov-22 Jan-23 Jan-24 Jan-25 Jan-26

TIA (psf): $0.00 $0 Effective Rent / SF $1.62 $1.49 $1.50 $1.55 $1.75 $1.810 $0.00 $0.00 $0.00 $0 $0 $0.00 Market Rent / SF $1.62 $1.62 $1.63 $1.69 $1.75 $1.81

Space 0.0 years Nov-22 Nov-27 Nov-32 N/A Annual Market Rent Growth 4.00% 4.00% 3.50% 3.50% 3.50% 3.00%3 Brokerage Commission: 0.00% $0 Effective Rent Growth (8.0%) 0.7% 3.5% 12.9% 3.5%

TIA (psf): $0.00 $0 Affordable Units

0 $0.00 $0.00 $0.00 $0 $0 $0.00 Rent / SF $0.00 $0.00 $0.00 $0.00 $0.00 $0.00Space 0.0 years Nov-22 Nov-27 Nov-32 N/A Annual Rent Growth 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%

4 Brokerage Commission: 0.00% $0 Annual Expense Inflation 2.00%TIA (psf): $0.00 $0

AVERAGE 0 $0.00 $0.00 $0.00 $0 $0 $0.00 MOVE-IN VELOCITYAffordable Units Market Rate Monthly Move-Ins

OTHER INCOME ASSUMPTIONS ANNUAL TOTAL Monthly Move-ins 0 Jan 14 May 21 Sep 17# of Monthly Total Total Income Income Market Rate Units Feb 14 Jun 21 Oct 16

Units Rent / Unit Mthly Rent Income Per Unit Per Resi SF Max Monthly Move-ins 25 Mar 16 Jul 20 Nov 14Covered Parking 104 $65 $6,760 $81,120 $443 $0.49 Avg Monthly Move-ins 17 Apr 18 Aug 18 Dec 14Storage 0 0 0 0 0 0.00Garage 0 0 0 0 0 0.00 VACANCY PARKINGEnter Description 0 0 0 0 0 0.00 Market 5.00% Use Spaces RatioEnter Description 0 0 0 0 0 0.00 Affordable 0.00% Residential 264 1.44 per unitEnter Description 0 0 0 0 0 0.00 N/A 0.00% N/A 0 N/APet/App/Other Fees 92 30 2,745 32,940 180 0.20 Structural 1.00%

TOTAL $9,505 $114,060 $623 $0.70CONCESSIONS

INCOME TOTALS ANNUAL TOTAL Free Rent 1.0 months# of Total Monthly Monthly Total Income Income Given Upfront

Units SF Rent / Unit Rent / SF Income Per Unit Per Resi SF Duration 15 monthsResidential 183 163,992 $1,449 $1.62 $3,183,035 $17,394 $19.41N/A 0 0 0 0.00 0 0 0.00Other NA NA NA NA 114,060 623 0.70

TOTAL $3,297,095 $18,017 $20.11


PROPERTY TAX PRINT-OUT

7/30/2021 Collin CAD - Property Search

https://www.collincad.org/propertysearch?prop=2834529 1/1

Property ID

Property Status

Geographic ID

Property Type

Total Land Area

Total Improvement Main Area

Abstract/Subdivision

Primary State Code

Legal Description

General Information

2834529

Active

R-6132-000-0410-1

Real

14.8740 acres

n/a

B B B & C Ry Co Survey

D1 (Qualified Open-space Ag Land)

ABS A0132 B B B & C RY CO SURVEY, TRACT 41, 14.874 ACRES

Owner ID

Owner Name(s)

Exemptions

Percent Ownership

Mailing Address

Owner Information

1187328

S Broadway Development LLC

None

100.00%

Po Box 787 Gilmer, TX 75644-0787

2022 Value Information

Value information for Property ID 2834529 in the 2022 tax year is unavailable. Valueinformation for prior years may be available in the Value History section below.

Improvements

Our records don't show any improvement data for Property ID 2834529 in the year 2022. Land Segment #1

State Code

Homesite

Market Value

Ag Use Value

Land Size

Land Segments

Improved Pasture

D1 (Qualified Open-space Ag Land)

No

1D1

14.8740 acres 647,911 sq. ft.

Property SearchProperty ID: 2834529 - Tax Year:

Entities

Taxing Entity Tax Rate Collected By

CCL (Celina City) 0.645000 (2020 Rate) Collin County Tax Office

GCN (Collin County) 0.172531 (2020 Rate) Collin County Tax Office

JCN (Collin College) 0.081222 (2020 Rate) Collin County Tax Office

SCL (Celina ISD) 1.483200 (2020 Rate) Collin County Tax Office

Value History

Year Improvement Land Market Ag Loss Appraised HS Cap Loss Assessed

Deed History

Deed Date Seller Buyer Instr # Volume/Page

03/25/2021 MARTINEK FARMING LLC S BROADWAY DEVELOPMENT LLC 20210329000622000

SB 541 – Amends Section 25.027 of the Property Tax Code, effective September 1, 2005RESTRICTION ON POSTING DETAILED IMPROVEMENT INFORMATION ON INTERNET WEBSITE:

Information in appraisal records may not be posted on the Internet if the information is a photograph, sketch, or floor plan of an improvement to real property that is designed primarily for use as ahuman residence. This section does not apply to an aerial photograph that depicts five or more separately owned buildings.

HB 394 – Amends Section 25.027 of the Property Tax Code, effective September 1, 2015RESTRICTION ON POSTING AGE RELATED INFORMATION ON INTERNET WEBSITE:

Information in appraisal records may not be posted on the Internet if the information indicates the age of a property owner, including information indicating that a property owner is 65 years of age orolder.

2022

https://www.collincad.org/propertysearch?subdiv_cd=A0132&year=2022

https://www.collincad.org/propertysearch?owner_id=1187328&year=2022

https://www.collincad.org/propertysearch?prop=2834529&year=2022#valuetable

https://www.collincad.org/propertysearch

https://www.collincountytx.gov/tax_assessor/Pages/property.aspx




https://www.collincad.org/propertysearch?prop=2834529&year=2022


QUALIFICATIONS

ROSS P. WELSHIMER, MAI EMPLOYMENT O’CONNOR & ASSOCIATES, HOUSTON, TX YEARS EMPLOYED (1990 - PRESENT)

APPRAISER - SENIOR TECHNICAL REVIEWER Technical reviews and appraisals of commercial property types including: multifamily communities, independent and assisted living facilities, office buildings, retail centers, service station/convenience stores, auto care facilities, restaurants, subdivisions, motels/hotels, and industrial facilities. Specialized properties appraised include: HUD-MAP market/feasibility studies and appraisals, multi-use properties, Housing Tax Credit and other subsidized housing developments, including Section 8 multifamily properties.

RESIDENTIAL FIELD APPRAISER YEARS EMPLOYED (1988- 1990) Harris County Appraisal District, Houston, Texas Duties included inspection and valuation of residential properties. ASSISTANT CHIEF DEPUTY ASSESSOR YEARS EMPLOYED (1986 - 1988) Downers Grove Township Assessor's Office, Downers Grove, Illinois Commercial appraisal department supervisor: inspection and valuation of commercial properties. EDUCATION BACHELOR OF SCIENCE YEARS ATTENDED (1981 - 1985) Illinois State University Normal, Illinois Double Major: Market Research/Business Administration APPRAISAL INSTITUTE REAL ESTATE COURSES COMPLETED Attended and successfully completed all courses relating to Appraisal Institute MAI designation, along with required education to comply with continuing education program of the Appraisal Institute. 400 - Uniform Standards of Professional Appraisal Practices; 310 - Basic Income Capitalization; 320 – General Applications; 510 – Advance Income Capitalization; 520 - Highest and Best Use and Market Analysis; 530 - Advanced Sales Comparison and Cost Approach; 540 – Report Writing and Valuation Analysis; 550 – Advanced Applications; Appraisal of Nursing Facilities; Fundamentals of Separating Real Property, Personal Property, and Intangible Business Assets; Appraising From Blueprints and Specifications; Internet Search Strategies for Real Estate Appraisers; Litigation Skills for the Appraiser: An Overview. OTHER REAL ESTATE SEMINARS AND VALUATION COURSES COMPLETED

HUD MAP Certification; Business Appraisal Workshop - 8001 (IBA); Essentials of Real Estate Finance, Basic Appraisal Practices, Cost Approach to Value, Market Approach to Value, Income Approach to Value, Introduction to Residential and Rural Property Appraisal, Introduction to Commercial and Industrial Property Appraisal, Marshall and Swift Calculator Cost Method and Segregated Cost Method, Texas Property Tax System, Introduction to Appraisal, Appraisal of Personal Property, Property Tax Law, Mass Appraisal Concepts

PROFESSIONAL AFFILIATIONS • MAI Member of the Appraisal Institute • State Certified General Real Estate Appraiser: TX-1324328-G (1992 - Present)

• Also state certified in California and Louisiana • Candidate RPA Designation (through Texas SPTB -Inactive) (1989-1990) • Certified Illinois Assessing Officer (Inactive) (1987 -1988)

Appraiser: Ross P WelshimerLicense #: TX 1324328 G License Expires: 12/31/2022

Chelsea BuchholtzCommissioner

Certified GeneralReal Estate Appraiser

Having provided satisfactory evidence of the qualifications required by the Texas Appraiser Licensing and Certification Act, Occupations Code, Chapter 1103, authorization is granted to use this title: Certified General Real Estate Appraiser

For additional information or to file a complaint please contact TALCB at www.talcb.texas.gov.

ROSS P WELSHIMER13942 JAYCREEK COURTHOUSTON, TX 77070

Documents

O’Connor & Associates