THE

THE SARAH

A Luxury Class A+ Multifamily Investment Opportunity

THE SARAH AT LAKE HOUSTON

Humble,Texas

# 0

IN RENT GROWTH

0 %

population GROWTH

$ 0 K

AVG INCOME

Investment Highlights THE SARAH AT LAKE HOUSTON

The Sarah at Lake Houston is a 350-unit, 2020 construction, Class A+ multifamily community located in the fastest growing submarket within the Houston MSA. The property features unique lakeside living and an exceptional amenities package highlighted by a resort style pool, biergarten, multi-sport simulator, state-of-the-art athletic center, executive business and conference center, and dog park, along with luxurious interior finishes.

350

UNITS

2020

YEAR BUILT

17.35

ACRES

911

AVG UNIT SQFT

98%

OCCUPANCY

318,746

RENTABLE SQFT

The Sarah at Lake Houston Drone Video

Play Video

WHY WE LOVE THE SARAH AT LAKE HOUSTON

Rent Growth - Management has been able to push rents up between $200-$500 during our contract period for various units with no CAPEX

Location, Location, Location - Submarket is a HOT Class A location with retail, access to major highways and about 15 minutes from George Bush International Airport

Increasing NOI - In spite of increasing interest rates we have been able to keep the projected cashflow in place due to increasing NOI

Other Income Generation Opportunities - Lot of low-hanging fruit to further push up revenues with boat-parking, building out covered parking, renting out clubhouse and covered pool cabana, premiums for units with views of lake and pool and yards.

Recession-resistant Asset - Brand-new luxury construction means low expense ratios and low Capex budgets. No big budget repairs to plan for and a great solid property to park money over a recession.

Institutional Quality Asset - Highly desirable asset to institutional buyers like REITs.

High income demography - both on property and in 1 mile radius. Stable tenants and low delinquency issues during a downturn.

Long-term Hold Options - High quality new build gives us the option to refinance and hold longer if needed.

Instant Equity - Third party appraisal report came out at an as-is value $2M higher than our purchase price and a stabilized value that is $5M higher

Cost Segregation Benefits - Last but not least an estimated cost segregation depreciation about 90%

EXECUTIVE SUMMARY

DEAL HIGHLIGHTS

CLASS A+
ASSET

The Sarah at Lake Houston is a newly constructed class A+ asset, built in 2020. The property features unique lakeside living and an exceptional amenities package.

#1IN RENT
GROWTH

The Lake Houston submarket is the #1 top Houston submarket when it comes to rent growth over the last 6 months, with a whopping 17.1% in rent growthbover the last 6 months,annualized.

120% POP
GROWTH

Population growth within a 1-mile radius of the Sarah at Lake Houston between 2010 and 2021 was 120%. Further, with only 179 units currently under construction within a 7-mile radius, multifamily supply is extremely limited.

$135K AVG
INCOME

Affluent surrounding demographics continue to drive rental demand. The average household income is $135k within a 1-mile radius of the property and $122k within a 3-mile radius.

IDEAL
LOCATION

The Sarah at Lake Houston is just 10 minutes from Generation Park – a master planned commercial development anchored by Fortune 500 company TechnipFMC (2,000+ high tech jobs) – and just 30 minutes from downtown Houston (158k+ jobs).

WHY WE LOVE THE SARAH AT LAKE HOUSTON

Rent Growth

Management has been able to push rents up between $200-$500 during our contract period for various units with no CAPEX

Location

Submarket is a HOT Class A location with retail, access to major highways and about 15 minutes from George Bush International Airport

Increasing NOI

In spite of increasing interest rates we have been able to keep the projected cashflow in place due to increasing NOI

Other Income Generation Opportunities

Lot of low-hanging fruit to further push up revenues with boat-parking, building out covered parking, renting out clubhouse and covered pool cabana, premiums for units with views of lake and pool and yards.

Recession Resistant Asset

Brand-new luxury construction means low expense ratios and low Capex budgets. No big budget repairs to plan for and a great solid property to park money over a recession.

Institutional Quality Asset

Highly desirable asset to institutional buyers like REITs.

High Income Demography

Both on property and in 1 mile radius. Stable tenants and low delinquency issues during a downturn.

Long-term Hold Options

High quality new build gives us the option to refinance and hold longer if needed.

Cost Segregation Benefits

Last but not least an estimated cost segregation depreciation about 90%

BEST IN CLASS AMENITIES

LUXURY INTERIORS

MULTI-TIERED EQUITY STRUCTURE

Class A

Class A investors sit in the prime position in the capital stack. Class A has a preferred return (pref) of 9% – paid out
monthly.

The minimum investment is $100,000.

Due to the position in the capital stack,Class A investors have no upside upon disposition or another capital event and do not share in depreciation or other profits or losses.

This tier is for investors who prefer stronger cash flow and minimal risk.

Class B & C

Class B, C, D, & E investors are at the same payment priority level in the capital stack and sit behind Class A investors, per the diagram.

The minimum investment is $50,000 for Class B and $200,000 for Class C.

The pref is 7% for Class B and 8% for Class C. Cash flow from operations remaining after paying out Class A will be distributed to Class B & C investors on a quarterly basis.

These tiers are for investors who want strong returns over the life of the investment, including both cash flow and equity. Class B & C investors will participate in the upside upon disposition or capital events.

Class D & E

Class B, C, D, & E investors are at the same payment priority level in the capital stack and sit behind Class A investors, per the diagram.

The minimum investment is $500,000 for Class D and $2,000,000 for Class E.

The pref is 9% for both Class D and Class E. Cash flow from operations remaining after paying out Class A will be distributed to Class D & E investors on a quarterly basis.

These tiers are our premier classes for investors who want to maximize their returns over the life of the investment. Class D & E investors will participate in the upside upon disposition or capital events.