Appraisal Gordon October 2013

REAL ESTATE SELF-CONTAINED APPRAISAL REPORT
Subject
Value of She ExlsUng Improvements
located at
625 Gordon Street
Corpus Christi, Texas
MARKET VALUE:
October 29, 2013
ALSO KNOWN AS:
t.>oraon Street Apartmen1s REVISED
PREPARED FOR:
Azeneth Hernandez
Plains CapHal Bank
505 South McColl Road
Edinburg, Texas 78539
PREPARED BY:
David E. Jones
State Certified General Real Estate Appraiser
P.O. Box 152513
AusUn. Texas 78715-2513
DAVID E. JONES
Dovid f . Jn.s T".J<p)oor.c (800) 5512532
P.O 8"" 152513
lluttln, r..,., 7nt52513
November 1, 2013
Azenelh Hernandez
Plains Bank
505 s. McColl Road
Dear Ms. Hernandez:
Corpus Christi- Gordon Street Apartments- REVISED
As you requested. we have completed an appraisal for MARKET VALUE orthe real estate located at 625 Gordon
Street, Corpus Christi, Texas. The legal descr1pUon is "Lot 9, Block 40, Lindale Park #4," Nueces County, Texas
subject to all restrictions, easements, teases and other encumbrances.
The PURPOSE orthe appraisal is to communicate the appraise(s opinion or MARKET VALUE as defined herein.
The date or value and the dale or the last inspedion is October 29, 2013. The RIGHTS appraised are FEE SIMPLE
INTEREST In lhe surface estate subject to all tease agnaements, nastrictions and easements or nacord. limitations
caused by eminent domain, s1andby fees, taxes. assessments by taxing authOnties, esCheat, pollee power and
taxaUon. The FUNCTlON or lhe report Is to provide a basis for loan consideration.
The appraisal study contained within the attached report has been prepared in order to conform to FIRREA
Guidelines and the Uniform Standards of Professional Appraisal Practice (USPAP). The value listed below is
qualified by certain assumptions, conditions, definitions, and certificati ons set forth In this report.
In our opinion, the FINAL OPINION OF CURRENT MARKET VALUE, unencumbered, for the appraised
property described herein (land with Improvements on site), "AS IS' Is $1 ,840,000:
II E Jones &
Azeneth Hernandez
November 1. 2013
Page 2
Corpus Christl- Gordon Street Apartments - REVISED
The folloWing five points velify our compliance wnh your Instructions and compliance with FIRREA Guidelines. A
copy or your instructions is included in the Addenda to this report.
FIR REA:
1. Conform to generally accepted appraisal standards as evidenced by the Uniform Standards of
Professional Appraisal Practice (USPAP) 2012 Edition effective January 1, 2012 promulgated by the Appraisal
Standards Board or the Appraisal Foundation. unless principles of safe and sound banking require compliance
with stricter standards. Entire report
2. Be written and contain sufficient information and analysis to support the institution's decision to
engage in the transaction. Entire report
3. Analyze and report appropriate deductions and discounts for proposed construe! ion or renovation,
partially leased buildings, non-market lease temns. and tract developments with unsold units. See Cost
Approach if applicable
4. Be based upon the definHion of market value as defined herein. See definition of Marl<et Value
5. Be performed by State licensed or certified appraisers in accordance with requirements set forth. See
Appraiser's Qualifications in the Addendum
I hereby certify that this appraisal complies with the applicable standard rules or the USPAP, the Intended use,
typical bank appraisal policies and to the appraiser's peer's standards.
Thank you for this opportunity to be of service to you. If you have any questions about the attached report,
please call.
Sincerely,
David E. Jones
TX 1322216-G
ill Daviti E Jones & flssoeiates
Corpus Christi Gordon street Apartments REVISED
TABLE OF CONTENTS
TABLE OF CONTENTS ........................................................................................................................................... iv
SECTION 1 .............................................................................................................................................................. 1
EXECUTIVE SUMMARY ........................................................................... ... ...... ... .......... ............................ ....... 2
SECTION 2 .............................................................................................................................................................. 4
CERTIFICATION .. .......... ....... ................................................................. ............................. ............................. ... 5
SCOPE OF WORK ........................................................... , ................... .. ...................... ....................... ................ 6
DEFINITION OF MARKET VALUE ....... ......... .......... .. ................... ................... ...... ...... ....... ................................ 8
APPRAISAL STANDARD RULES ....................................................................................................................... 9
PROPERTY RIGHTS APPRAISED ............................................ .......... ............ ............ ...................................... . 9
THREE YEAR OWNERSHIP HISTORY ........................................................................................................... 10
OVERVIEW ........................................................................................................................................................ 10
EXTRAORDINARY ASSUMPTIONS AND HYPOTHETICAL CONDITIONS ................................................... 11
ETHICS RULE ................................................................................................................................................... 11
COMPETENCY RULE ............................ ........................................................................................................... 11
SECTION 3 ............................................................................................................................................................. 12
TEXAS ECONOMIC TRENDS .......................................................................................................................... 13
CORPUS CHRISTl MSA PROFILE SUMMARY .......... .. .......... ........................................................................ . 18
CORPUS CHRISTl SALES TAX RECIEPTS ....................................................... ............................ ............ .... . 19
SUB-MARKET AREA ANALYSIS ......................................... .................... .................. ....................................... 20
SECTION 4 ............................................................................................................................................................ 24
SITE DESCRIPTION & ANALYSIS .............. ......................................... ............................................................ 25
HIGHEST AND BEST USE ............................................................................................................................... 35
DESCRIPTION OF IMPROVEMENTS ........................................ ...................................................................... 38
SECTION 6 ............................................................................................................................................................ 42
SALES COMPARISON APPROACH ....................................................... ......................................................... 43
COMPARABLE SALES MAP ........................................................................................................... ................. 44
COMPARABLE BUILDING SALES ............... ..................... ...................................................... ......................... 45
BUILDING SALES ADJUSTMENT GRID ...... .............................. ................. ..... ................... ............ ....... .......... 50
SUMMARY OF BUILDING SALES ............................................................... ..... ... ...... ................ .... .. , ............... . 51
SECTION 6 ................. ........................................................................................................................................... 53
INCOME APPROACH TO AN INDICATION OF VALUE ....... ............ .. ............. ................................................ 54
CONTRACT/MARKET RENT ............................................................. ....... ...... ........................................... .... ... 55
INCOME PROFORMA .......................................................................................................................... ............ . 64
CAP IT ALIZA TION RATE ................................................................................................................................... 65
SECTION 7 ............................................................................................................................................................ 68
EXPOSURE TIME ............................................................................................................................................. 69
CORRELATION AND FINAL VALUE CONCLUSION ....................................................................................... 70
CERTIFICATION AND STATEMENT OF LIMITING CONDITIONS ................................................................. 72
lv Dovid c Jones & l'issociot;os
SEC110N 8 ................................................................................................................................................ ............. 76
ENGAGEMENT LETTER ........... ....... ............. ...... ........................................................ ..................................... 76
TAX DATA ...... ...... ................ .... ......... ............. ...... .......... ... ... ......... ......... .................... .. ......... ............................ 79
RENT ROLL ...... .......... .... ................................ .. ................ ............. ..... ........ ..... ............. ...................... ............... 81
SUBJECT PHOTOGRAPHS .................... ............................................ .. .......... .......... .. ................ ................ ... .. 82
SECTION 9 ............................................................................................................................................................ 93
QUAUFICATlONS OF DAVID E. JONES ................ ...... ................................................................................... 94
INVOICE ................................................................... ...... ............................................. ...................................... 98
v David Jones & 11ssociates
SECTION 1
1 David 13 Jones & l'lociat'-S
DATE OF INSPECTION:
DATE OF REPORT:
EFFECTIVE DATE OF
VALUATION:
LOCATION:
LEGAL DESCRIPTION:
SITE DATA:
Sile Size
Excess Land
Zoning
Highest & Best Use
Utililies
BUILDING DATA:
Construction Class & Type
Construction Qualily
Overall o n d ~ l o n
Highest & Best Use
Gross Building Area
Net Rentable Area
Number of Unil.s
VALUE INDICATIONS:
S.C. Approach
Income App(oach
VALUE OF NON-REALTY
INTEREST:
COST OF REPAIRS OR
ADDITIONS:
CONDITIONS OF APPRAISAL:
EXECUTIVE SUMMARY
October 29. 2013
November 1, 2013
October 29, 2013
625 Gordon Street, Corpus Christi, Texas
Lindale Par1< #4, Block 40, Lot 9, Nueces County, Texas
''As Is"
- 69,675 sguare feet(+,-) or 1.5995 acres(+,-)
None
"RM-1"
Mutti-Famlly Residential Development
Public
EXISTING
Class "D" Type Apartments"
Fair-to-Average
Fair-to-Average
Apartment Complex
38,102 square feet(+,-)
28,947 square feet(+,-)
42
11
ASISfl
$1,840,000
$1,840,000
Not considered - FFE
Assumed none
"fls is"
2 David li jone$ & II$$Ociate$
FINAL CONCLUSION OF
VALUE:
CRITERIA OF CONCLUSION:
Real Estate
FFE
Goodwill
TOTAL
"As Is"
$1 .840,000
$0
so
$1 ,840,000
The final opinion of value was based on a weighted average applying
the Sales Comparison and Income Approaches to Value.
3 Dovit! t Jt>n&S & flssociotes
Corpus Christi- Gordon Street Apartments - REVISED
SECTION 2
4 Dovid t: Jon.s & 11ssocltr
CERTIFICATION
(AS REQUIRED BY USPAP)
I certify that, to the best of my knowledge and belief:
-the statements of fact contained in this report are true and correct.
-the reported analyses, opinions, and conclusions are limited only by the reported assumptions
and limiting conditions and are my personal, impartial, and unbiased professional anal yses,
opinions, and conclusions.
- I have no present or prospective interest In the property that is the subject of this report and no
personal interest with respect to the parties Involved.
I have no bias with respect to the property that Is the subject of this report or to the parties
involved with this assi gnment.
- my engagement in this assignment was not contingent upon developing or reporting
predetermined results.
- my compensation for completing this assi gnment is not contingent upon the development or
reporting of a predetermined value or directi on 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.
my analyses, opinions, and conclusions were developed, and this report has been prepared, in
conformity with the Uniform Standards of Professional Appraisal Practice.
David Jones made a personal inspection ofthe property that is the subject of this report.
Kamle Dorris provided significant real property appraisal assistance to the person(s) signing this
certification.
- I appraised this property last year for the First National Bank of Edinburg who was bought out
by Plains Capital Bank therefore I appraised the subject for the same client about a year ago.
Dated: November 1, 2013
Appraiser
5 DRvid Jones & llsso&IRts
SCOPE OF WORK
The appraiser performed the following scope ofwor11 regarding the subject apartments:
1. The appraiser received the assignment verbally and via written Engagement letter from the client.
z. The appraiser discussed the assignment with the client and identified the problems to be solved regarding
the wor11.
3.

10
"
12.
'"'
It is understood t hat the client has requested the following: a self contalned appraisal format using an "as
Is" condition. The value will not include FF&E per client. It Is further understood that the client is the sole
and exclusive intended user of the appraisal and the only intended use Is for the client lo make
underwriting decision regarding this property which win be used as collateral
A written request was made to the cli ent to provide any Information in their possession not found in pubfic
records regarding the property that would impact the appraisal process including matters of physical, legal
or economic Characteristlcs. Information requested Included: a survey, property tax ID number, income &
expenses for the past 3 years and year to-<late and a copy of the current rent roll.
USPAP Standard 1 was used to develop the appraisal. The appraiser followed USPAP Standard 2 in
writing the report.
A typical physical inspection was performed of the entire stte and an interior Inspection of the
Improvements on sne. We are not state certified Inspectors therefore we are not trained nor qualified to
judge the structural integrity of improvemenls We recommend that a certified inspection be completed on
all structures or improvements to deal w"h suCh matters as the structura I integrity of Improvements and
any repair needs. The land and building size data was obtained from government sources or from data
provided by the criBnl This data was not lndependenUy verified by the appraiser.
A physical inspection was performed of the neighborflood.
Nueces County Appraisal District (CAD) was interviewed about the history ofthe property. They provided
the current lax assessed value and the "land card." A search of comparable sales was conducted through
CAD records. Property tax rates were provided by CAD. We reviewed tax values of similar properties and
compared their assessed value with the subject's assessed value.
Prior deed records and a tax map were researched using county cler11 or appraisal district records.
The owner was interviewed by the appraiser regarding his knowledge of the property
The appraiser gathered add"lonal Information regarding the physical Characteristics of lhe subject
property.
Purchasers, sellers, real estate brokers, attorneys, tHie agents, appraisers and lenders in the marllet area
were inteNiewed for additional mar11et information.
Research and inspection of the available apartment sales proved to be reliable and adequate to analyze
and support the conclusions relative to the assignment
6 David Jonu & flssoc/atar
..
111.
,.
17
IS
Corpus Christl- Gordon street Apartments - REVISED
Area economic Information was obtained from local banks, chambers of commerce, public libraries,
census data, and other sources.
Demographic data was obtained from the appraiser's proprietary databank.
The information necessary for this appraisal assignment was then compiled to produce this report in
accordance the Uniform Standards of Professional Appraisal Practice (USPAP), as well as,
Instructions to the appraiser from the cfient.
Data requested from the Client deemed necessary for the dewlopment of a credible report but not
provided included the following.: None
Data requested from others deemed necessary for the development of a credible report but not provided
included the following: None
7 Doviri Jones & flssociot;er
Corpus Christi- Gordon street Apartments - REVISED
DEFINITlON OF MARKET VALUE
Marl<et Value is the major focus of most real property appraisal assignments. Both economic and legal definitions
of mafl(et value have been developed and refined. A current economic definition agreed upon by agencies that
regulate federal financial institutions in the United States is:
Market yalue means the most probable price which a property should bring, ina competitive and open market wider
all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowl edgeably, and
assunting the pricej s not affected by undue stimul us. Implicit in this definition is the consummation of a sale
as of a specified date and the passing of title from seller to buyer under conditions whereby:
1. Buyer and seller are typically mctivated;
2. Botlt parties are weU infonned or well advised. and acting in wllattlley consider their own best intereslS;
3. A reasonable time is allowed for ewosure in the open market;
4. ,Payment is made in terms of cash in U.S. dollars or in terms of financial arrangemeotscomparnblc thereto;
and
5. The price represeDtS !he normal considerati on for the property sold unaffec.ted by special or creative
financi ng or sales concessions granted by anyone associated wilh lhc sale.
Source: Mafl(et Value Definition follows the Uniform Standards of Professional Appraisal Practice (USPAP) and
meets the requirements of the occ Regulation 12 CFR Part 34, FDIC Regulation 12 CFR Part 323, n ue XI of
the Financial lnsmutions Reform, Recovery and Enforcement Act of 1989 (FIRREA) and the Office ofThrifl
Supervision Regulation 564.2(1) and Trtle XI of the Financial Institutions Reform, Recovery, and Enforcement
Act (FIRREA) , 12CFR 34.42(9).
Adjustment to the comparable sales must be made for special or creative financing or sales concessions. No
adjustments are necessary for those costs which are normally paid by sellers as a result of tradnion or law in a
mafl(et area; these costs are readily identifiable si nce the seller pays these costs In virtually all sales .transactions.
Special or creati ve financing adjustments can be made to the comparable property by comparisons to financing
terms offered by a third party instnutionallender that is not already involved in the property or transaction. Any
adjustment should not be calculated on a mechanical dollar for dollar cost of the financing or concession but the
dollar amount of any adjustment should approximate the market's reaction to the financing or concessions based
on the appraiser's j udgment
8 David E .Jones & flrsocioter
APPRAISAL STANDARD RULES
According to US PAP standards Rule 2-2 (a): The oontenl or a Self-Contained Appraisal Report must be
consistent with the intended use of the appraisal and, at a minimum:
(i) state the identity of the dient and any Intended users, by name or type;
(10 state the Intended use or the appraisal;
(Ill) describe information sufficient to Identify the real estate involved in the appraisal Including the
physical and economic property characteristics relevant to the assignment;
(lv) stale the real property interest appraised;
(v) state the type and definition or value and cite the source or the definition;
(vi) state the date of the appraisal and the date of the report;
(vii) describe the scope or work used to develop the appraisal;
(viii) describe the information analyzed, the appraisal methods and techniques employed, and the
reasoning that supports the analyses, opinions, and condusions; exclusion of the sales oomparison
approach, cost approach, or income approach must be explained;
(lx) state the use or the real estate existing as of the date of value and the use or the real estate
reflected In the appraisal; and, when an opinion or highest and best use was developed by the
appraiser, describe the support and rationale for that opinion;
(x) dearl y and conspicuously:
state all extraordinary assumptions and hypothetical and
state that their use might have affected the assignment results;
(xiO lndude a signed certification In accordance wtth Standards Rule 2-3.
PROPERTY RIGHTS APPRAISED
Property rights appraised were "Fee Simple." Fee Simple is defined as "Absolute ownership unencumbered by
any other Interest or estate; subject only to nmnauons of eminent domain, escheat, pollee power, and taxation.-
(American lnsmute or Real Estate Appraiser, The Appraisal or Real Estate, 8th ed.; Chicago: American lnsmute
of Real Estate Appraisers) This appraisal, however, only considers surface rights.
9 Dt:vid Jones & flssoelobcs
Corpus Chr lstl- Gordon Street Apartments- REVISED
THREE YEAR OWNERSHIP HISTORY
The Unifonn Standan:ls of Professional Appraisal Practice requires a three-year sales history or property being
appraised. We are required to consider, analyze and report pending recent agreements, options, lisUngsand sales
lnvollllng the property being appraised. Texas laws relating to the disclosure and confidentialky or real property
sales dala often resutts In undisclosed sales prtces. A reasonable effort was made 10 oblaln Information not
available to the public.
The current owner of the property is Gordon Street Apartments LLC per tax records.
The owner (Gon:lon Street Apartments LLC) reports that the subject property Is not under current agreement or
option and is nol offered for sale on the open market. Accon:ling to public records, the subject property has not
otherwise changed hands during the past three years.
OVERVIEW
The appraiser was contacted in October 2013 by Plains Capital Bank. the intended user, to conduct an appraiSal
for market value. The subject property iS generally described as 69,675 square feet or 1.5995 acres :tor land
improved with an apartment complex. The sfie abuts single-family residences to lhe north, single-family
residences to t he south, Gordon Street & beyond are apartments to the east and Swanther Drfva & beyond is
vacant land to the west. The intended use of this appraisal is for the client's use as a tool for making an
underwriting decision using the subject property as collaleral. This is the only Intended use or the appraisal and
does not Include further use of the report for any reason. The knowledge level of the cllenl and their customer of
this property were considered in the appraisal process. Others may not have the same knowledge level or intended
use. The report is not intended to be used as a marketing tool by the owner, buyer, seder or their agents. Land
and building siZe data was obtained from government sounces or from recon:ls provided by the ~ e n t and were
not Independently verified by the appraiser. The appraiser used an appropriate approaches and methodology to
complete the assignment and produce a credible report In compliance whh USPAP Standan:ls 1 & 2 and in
accon:lance wfih the appraiser's peers with similar experience appraising similar property. The approaches used
were the Sales Comparison Approach and the Income Approach. The Cost Approach was not considered
significant because of the age of the property. The Inclusion or this approach would nol have added to the
credibility or the appraisal process but could have act ually detracted from the analysis. The deletion of the Cost
Approach In this particular appraisal compiles with the Scope of Work rule which states "The scope of work is
acceptable when it meets or exceeds: the expectations of parties who are regularly Intended users for similar
assignments; and what an appraiser's peers' aelions would be in performing the same or similar assignment"
10 David Jon.s & flttoclotes
Corpus 01rlstl- Gordon Street Apartments - REVISED
EXTRAORDINARY ASSUMP110NS AND HYPOTHETICAL CONDI110NS
There are no extraordinary assumptions or hypothetical condHions regarding this appraisal assignment
ETHICS RULE
The appraiser recognizes and accepts his fiduciary relationship with the client, Plains Capital Bank, and complies
with the defined requirements of said rule as mandated by the USPAP. Full disclosure of these rules will be
provided upon request.
COMPETENCY RULE
USPAP Competency Rules: pnor to accepting an assignment or entering into an agreement to perfonn any
assignment, an appraiser must r o p ~ y identify the problem to be addressed and have the knowledge and
experience to complete the assignment competently; or anematively, must
1. disclOse the laCk or knowledge and/or experience to the Client before accepting the assignment,
2. take all steps necessary or appropri ate to complete the assignment competently: end
3. describe the lack of knowledge and/or experience and the steps taken to complete the assignment
competently In the report.
The appraiser has ample experience appraising similar property In the market area and thereby satisfies the
competency rule.
11 Davit/ E .Jo"cs & fl ssot:iatos
SECTION 3
12 David E Jon.s & flssociotes
Corpus Chr isti- Gordon Street Apartments- REVISED
TEXAS ECONOMIC TRENDS
Key Texas Economic Indicators
r .... nortarm employment II>Ut'65ed jobs clJmo
Al9J>t :!013.-August:t012endAug\dt :!013, r..., .,..1
11Clr0m"''"*"""'"lnoeasedby274)110jobsor25percmt
Consunwr Pr1c(!o index
ikr..Ot
-
... ,....,... ... m .lll.l..!!iO
_.,_
]
Dl.9
.u.s. ...... -
- - - u.s.
..........
..,,.,__
.... lllllllle\ ..
11).1
...... ,..
w 1,.,.,.. .... 100 1111
- Oon:I-JOEWII--lllll0 11i16!!10
]-Ill( - 11.1. 99.1
9111 IllS. I w
----o---
TeuHooulng Porm<U
To .. , No .. Reslolontl.ll Buldlng Con51Ncllon Contr.ltts
-
':w-:r-" ll

.Afl.l
..... _ .... _ .. ,'

13
Ow<tt<o Pil" yoar, Te<o oddod jobs In oU at mo 11 mojo< lndus17io<,
Including bushH> ll3do. lrlinlpOrtotlon
end udllloi, ll!isureend l1<lopllallly, tdiJCal!o<\lllld ,_, '"""-

..
-
a. .... _,.., .... .OC4 ll lli410
l"....'t: ..

- u - us.
-I
73'11
Uli
w 1111
lou Nonl;um Employmtnt
.. -. (hoogo ... _,...,... ,
:1----------------__. nJ
w
lll>ngt In NOIIf>nn EmploJTODIII
Mortgogo Forodosum
David c JDnos & FlssDdates
ltvul Tracking the Texas Economy, continued -
..
Texas economy Is ever-<hanglng as It responds to
and opporiUnltles. Go 10 our website at www.ThtTtxr11honomy.org to find ma<e
dctlk'<l on the Trns economy In addllloo to timely updates.
of the state's e<onomlc lndJrata<s are pUblished In every Issue
of the CDmpuolle<'s F&al Nom newslenet which also offen an In-depth loot
at mpkS and Issues affealng the Tem economy.
To gfl J<IUI frtt sulnalption to lls<alllotes. go to IJWW.Filto/Hotts.com.
Sign up11lrtaMMWI Tlilding the laas ra..c.r,llrJight to )CHIT
lnbax"
14 David E Jones & flssoclates
Nonfilnn Emplovment
Texas
United States
Priv;ne Employment
Texas
United Slnles
Corpus Christi - Gordon street Apartments - REVISED
Table I
Texas :and U.S. U.bor Mlrlceu
August 2013
II,IS4,700
135.961.000
Ausust20!3
9.426,400
I IS.21R.OOO
AuGust 2012
10.896,200
Ill. 753.000
AUe:\!l!l 2012
9. 17 MOO
112.927.000
Change
Absolute Pc:ra:nt
258.SOO
2.208.000 L 7
Absolute
247.800
2.291.000
mml
2.1
2.0
Actual Seasonally Adju<to!l
Unemployment k;ste Augu<!2013 Ausust2012 Augu.st2013 Augu<t 2012
Tc<as 6.3 6.9 6.4 6.8
United St.ates 7.3 R.2 7.3 8.!
Sources: Texas Worlcforoe Commi1Sioo ond U.S. Bureau or LA!x>r Statistics
Table2
T eus lndunrid and Go ern.mc:nt Se<:tor JUnked by Employment Growth Rate
fmm AU!!!!!! 2012to August 2013
S::b!na'

lndu.<UV August 2013 Augyst 2012 Abwlutc
I Mining :and Logging 291,700 276,900 14,800 S.3
2 ConstnJction 623,400 595,600 27,800 4.7
3 Ld.!ure & Hospitality l.ISS,IOO 1.109,SOO 45.600 4.1
3 Professional & Scrvicd I,4R6,SOO 1.427,900 SR.600 4.1
5 lnfonnndoo 203,100 196,800 6,300 3.2
6 Tmdt 1,781,000 1,734,400 46.600 2.7
7 Financial Acti,,itie:s 680,100 665,AOO 14,700 2.2
8 Education & Health Services 1,492.800 1.463,000 29.800 2.0
9 Otbcr Servi<>cs 390,300 385,400 4,900 1.3
10 Governrncnt 1,728,300 1.717,600 10,700 0,6
II MGrlufncturing 871,900 &11,200 700 0 I
12 Tm:nsnonar:ion. Warehnudna
1
lJt1l11iet 4S0,500 4S2.SOO -2,000 -04
Sources: Texu Workforce and Reo! ll<tat< Center at Texu A&M University
Tobie J
Texas Industries and Qovcmment' Shores of Employment
lndustrv
Mining and Logging
Cun.troction
Manufacturing
Tmde
Trnnsponation. Wan:housmg, Utilities

Fin:mcw Activities
Pmf=ional 3Dd Business Services
and Health Serv!Cfi
Letsure and Hospotality
SeMccs
August
2013
2.6
5.6
7.&
16.0
4.0
1.8
6.1
13.3
13.4
10.4
3.5
August
l22Q
2.3
5.0
13.4
17.9
4.3
2.S
6.S
9.2
9.6
11.7
3.8
Oo"UDITX:nt Sector I 5 5 16 7
Sourc<>: \Vorl< force Commini0t1 and Real Estate Cmtcr at TCX8S A&M Unhmity
Nme: Components may not add to 100 due to rounding.
15
Rank
I
2
3
4
5
6
6
8
9
10
II
12
12
12
15
16
16
18
18
20
20
22
23
24
25
26
Corpus Christl- Gordon street Apartments - REVISED
Table4
Texas Metropolitan Areas Ranked by Employment Growth Rate,
August 2012 to August2013
Metro Are-.1 Percent Growth Rate
Odessa 5.2
Midland 4.6
Dallas-Plano-Irving 3.7
Fort Worth-Arlingion 3.6
Houston-Sugar Land-Baytown 3.0
Corpus Christi 2.9
Austin-Round Rock-San Marcos 2.9
Texas 2.4
Longview 2.4
Laredo 2.3
College Station-Bryan 1.9
Abi lene 1.7
Victoria 1.5
San Angelo 1. 5
Lubbock 1.5
Amarillo 1.3
McAllen-Edinburg-Mission 1.2
Waco 1.2
Killeen-Temple-Fort Hood l.t
Brownsville-Harlingen 1. 1
Sherman-Denison 0.9
San Antonio-New Brnunfels 0.9
Beaumont-Port Arthur 0.7
EI Paso 0.6
Wichita Fulls 0.2
Tyler 0.1
Texarkana 0.0
Source: Texas Workforce Commission
16 /)avid c .Jones & flssociat es
Table 5
Texas Metropolitan Areas Ranked bv Unemployment Rate, August 2013
Rank Metro Area
I Midland
2 Odessa
3 Amarillo
4 Abilene
5 SanAngclo
5 Lubbock
7 Austin-Round Rock-San Marcos
8 Victoria
9 College Station-Bryan
10 Longview
II Wichita Falls
12 Corpus Christi
12 Fon Worth-Arlington
14 Dallas-Plano-living
14 Sao Antonio-New Braunfels
16 Houston-Sugar Land-Bay1own
16 Waco
Tens
18 Shennan- Denison
19 Laredo
20 Tyler
21 Killeen-Tcmplc-Fon Hood
22 Texarkana
23 El Paso
24 Beaumont-Pan Arthur
25 Brownsville-Harlingen
26 McAllen-Edinburg-Mission
Source: Texas Workforce Commission
17
Unemployment Rate, Percent
3.2
3.9
4.7
5.0
5.1
5. 1
5.2
5.3
5.5
5.6
5.8
5.9
5.9
6.0
6.0
6.1
6. 1
6.3
6.4
6.6
6.8
7.1
7.2
8.7
9.8
10.0
10.8
!>avid li .Jones & llssociatcs
Corpus Christl - Gordon Street Apartments - REVISED
CORPUS CHRISTI MSA PROFILE SUMMARY
Corpus MSA Augusl 2013
(/va"'U\. tJI.Ii<e5. Son PT.rkiol
Industry Composition
-
-
--
-
Employment by Industry
t..&<nh f Cl\anqe
., "
"' "
... ..
..... ..
,,.._
191,0l0 191JDD ... ..,
ITlO 04"
!"'1..1Qj;Jr"4. ..W CI.JMwdul 71, 100
-
,..,
... ....
......
.,.,.
..... 10.(1)) 100 ....
33,<QO 33,400
..ll>
0 ....
-
2,000
l/1<
2,10l 0 00'1<
--
>:roo ..... 7,T'O) 0
....
""*'-- s..vites
1S,11X! ...... 1$,&0) :!00
,..,.
EdtUJOn lltiCI 32,000 3 1,1100 31,ti:IJ 200
....
........ 2<,000
-
23,70!1
-
I "'
ov...s..- 1,100 $.200 7,80:1 .... 1.210
""""'"""'
"'""'
..... 31110:1 100 .....
' !lnmml ('rnwlh Rai P. for Total Nonagnr.ullural Fmploymenl
tUN
'"'
Wages by Industry (In millions)
Ut OU.n&r 2013
lndusiJy Soze Class
Uucn 2013
AMWJ 01<.-q<
""'
-
....... , .........
...
..... ... ......
-
..
..... 2..,.

IIIlO .. ..... 22ft
....,. ,...,.

-
,.
11111
._ ...
....
.. ""
r
-
Sf 10""
.,.
1 ....

.,.,.,

20313 1 .....
100 ......
'
301 11,901 1t.a%
0 o ...

,...., ...,
141,427 ..,..,
.,..
"'""

10.1P 1 .... 14,1JO
'"'
1,000
,,..,
2 ... I{>M
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....
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, ..
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....
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I.Oll 1 012

Avatoble at t ffpffW'.w. llacel'l oom
18 David Ei Jooes & flsroclot es
Cltv;
Mondo
JAH
fEB
MAR
APR
MAY
IUN
I UL
AUG
SEP
OCT
NOV
DEc
AHNUI\l
TOTAl
MOHllllY
AVG
Corpus Christi- Gordon street Apartments- REVISED
CORPUS CHRISTl SALES TAX RECIEPTS
COrpus Christi
-
Annual
-
An.nu.l
ZOB lOU lOU 2010
llo6 llo6 llo6 '16
3.41" $5,3LS,948 II.ZJK $4,496,430 ll.B4K lli.SSK
$7,/m.sso L24" $7,537,147 u.a&K 56.619,275 12.49% $5,884, 361
13.31"
$5,598,195 7.25% :U.UK $5,891,775 0.95% $3,855,0!1 U.SOK
ss.M:z.n S.lB')! $5,411,310 n.:z% $4;457,638 $4,574,1142 1.16K
$7,240,784 8.26" $6, 638.241 9.89!1 $5,086,211 12.90% $5,390,957 LUK
$5,81.8,085 o.sm $5,437,803
IO.S3"
$4,902,182 LS.35% $4,249,670 0.40%
S5.960,5S5 6.36% $3,622,132 IUS!! $4,934,!107 1G.l3% $4,480,$10 7.nK
$6,999,820 $6,778,701 7.34!1 S5,3B,148 32.30% S4,rn,l47 9.A4K
$6,2&S,087 1.0$" $6,099,182 21.29!1 S$,028,492 13.:24% $4;440,731 LOl!l
$5,315,027
1.n"
$6,208,534 7.64!1 $5,767,858 2S.50ll $4,5!15,903 7.56!1
$6,366,855 S6,196,US 13.92!1 $5,439,022 U.SA!I
S5,8'U,481 46.39% $4,0lS,7&4 -6.09!! S4.286,805 LlS!I
$7Ual.1:10 U.nK $62. 721.4Jii l.2.lmli $55,'191,660 l.JCIK
$6.3o5.9U 5.S1K $6,-,411 17- $5,226,716 lL69% S&,OiiS,sn L11K
MSAMAP
$t PIUI
-----
Mo1gon Sinton
F'a!mAttl
"'Soon
... ., RoliSlO<o'<l

r.cen-Ten
voro.
, ....
p
Ti ft Taft
AauchwHI
19
0 "9'>ry
Fulkm
Rockpol1

Amnsas
Pooo
Ar.ansat
-
Z009
llo6
$&.S17,9ZO 3.0S!I
$5,717.4S4 10.47K
.O.U!I
$4,628,34.S 3.61"
SS.UL923 9.82!1
$&,212,597 14.96K
S4,1.S9,514 U.44K
SS,l7L19l 10.45K
$4,1'16,241 LS.46!1
$&,272.111 10.97K
S4.m,76J 14.90%
S4,229,690 17.92!1
$S1 ,31.1,1All
1.61"
S&,ns,"7 l 7.64!1
SUB-MARKET AREA ANALYSIS
The purpose of analyzing the sub-mar1<et area is to determine how the operation of social, economic,
governmental, and environmental forces influence property values in the specific area in which the subject
property is located. The sub-mar1<et area analysis provides a means of analyzing the general influences on all
property values and the study of a particular subject property.
A SUB-MARKET AREA is defined by this appraiser as a portion of a larger communny, or an entire communny,
in which there is a homogeneous grouping of lnhaMants, buildings, or building enterprises. lnha of a sub-
mar1<et area usually have a more than casual of Interest. Sub-mar1<et area boundaries may consist
of well-defined distinct change In land use or in the character of the The area most closely surrounding
the subject property, whether it contains residential properties only or a mixture of commercial and residential
properties, is called a sub-mar1<et area. A sub-!f1ar1<et area may also designat e an area comprised solely of
commercial or industrial properties, atthough tha term 'district" is often used for such properties.
SUB-MARKET AREA ANALYSIS - The objective analysis of observable andfor quan11fiable data Indicating
discernible patterns of urban growth, structure. and change th.at may detract from or enhance property values.
SUB-MARKET AREA LIFE CYCLE - The lif e of a sub-mar1<et area usually involves the following states, varying
only in intensfty and duration: growth and development, stabilny, transition and decline. This pattern may be
followed by renewal and rebabi!Halion (revitalization), at which point the cycle is repeated.
SUB-MARKET AREA BOUNDARI ES are identifted by determining the area in which the forces !Jperate on
properties in the same way that they operate on the property being appraised. II may be seen as a grouping of
properties physical boundaries. Physical boundaries are tess significant than are the boundaries of
influences on property values, even though infl uences may end at observable physical points.
20 David Jonu & flssociates
Caoani>S Fiald
Naval Ourlv!nn.+.
{
AREA MAP

@)
Corpus
Chrlsll
SUB-MARKET AREA DATA
LOCATION: The subject sub-marl<et area Is located Inside the Corpus Christi MSA.
CENSUS TRACT: The sub-marl<et area is within the foDowing census tract: 48355-0021.00
BOUNDARIES- We have defined the subject sub-mar1<et area wnh the following boundaries:
North - Interstate Highway 37
East - Corpus Christi Bay
South - State Highway 358
West - State Highway 286
MAJOR HIGHWAYS: Major highway serving the defined sub-marl<et area is State Highway 37.
SCHOOL DISTRICT: Corpus Christi Independent School District Is the school disll1ct covering the subject sub-
marl<et area.
21 Davit/ li Jones & llssociatos
Corpus Christl- Gor don Street Apartments - REVISED
LAND USE - We have surveyed the sub-mar11et area and found these general uses of both developed and
undeveloped land.
DEVELOPED:
Single-Family Residential - 55%
Multi-Family Resldentlal - 10%
Office - 10%
Retail - 12%
Industrial-5%
Other-3%
UNDEVELOPED:
Vacant- 5%
ZONING: The predominant zoning within the sub-marl<et area is single-family residential. Other zoning
designations include oommerdal, retail and industrial.
CHANGING LAND USE: Within the last few years, we have noted that land use has not changed significantly.
SUB-MARKET AREA CHARACTERISTICS: The following describes sub-mar1<el area characteristics.
Life State - The subject sub-market area Is growing at a steady pace at this lime.
Maintenance & Condition - Maintenance and property are generally considered
average the sub- market area.
Property compatibility - There are a variety of property types within this sub-marl<et area which
Is typical and average of other sub-mar11et areas in the region. Therefore, property oompatibilily
is oonsidered average.
Appeal & Appearance- The sub-mar1<et area has appeal and appearance.
Protection & Adverse Influence -Corpus Christi is subject to Hooding and wind damage from
hurricanes due to the proximlty to the ooasL
Developmental Potential- Corpus Christi has good potential for development due to liS many
appealing characteristics.
Rental Demand - Residential rental demand Is good and retail rental demand Is good at this
time.
Public Transportation- The sub-market area has average public transportation service.
Access - One of Corpus Christi's best features is liS Central Business District
Police & Fire Protection - Police and fire protection is oonsidered average.
22
UTlLmES-Corpus Christi has an adequate municipal and private utilay infrastructure to accommodat e continued
growth. The following seNices are available:
Water- Municipal water along major highways and streets
Sewer- MuniCipal sewer along major highways and streets
Electric- Underground or ovemead power lines
Gas - Natural gas lines along major highways and streets
Telephone- Underground or overhead phone lines
TYPICAL RESTRICTIONS: The sub-market area has typical private deed restrictions, cky zoning and building
codes.
AGE RANGE OF IMPROVEMENTS: Buildings within the sub-market area range In age from 0 to 50+ years.
VALUE RANGE OF IMPROVEMENTS: Values range from multi-minion dollar shopping centers to $180.000
single-family residential homes.
VACANCY RANGE AND TIME - From our survey or the sub-market area, we have estimated the following
average vacancy rate and time on the market
Single-Family- 5%, 90 days
Multi-Family - >5%, 30 days
Retaii -10%,1BOdays
Office -10%, 180 days
Industrial - >10%, 280 days
RECENT DEVELOPMENTS: There are no major recent developments in the area to report.
APPARENT EASEMENTS: The sub-market area has typical utility and public easements.
DETRIMENTAL INFLUENCES: We observed no detrimental influences on the subject sub-market area.
COMMENTS: The subject sub-market area is average and typical of surrounding and compethive sub-market
areas. There is ample land available for development with utilities, zoning, and easy access. A majority of the
buildings in the subject sut>-mari<et area are tenant-occupied. Sub-mari<et area trends are average.
23 DavitJ Ei Janes & flsso<iate<

SECT/ON4
24 David Jon.s & flssoclates
SITE DESCRIPTION & ANALYSIS
In describing land or sites we have detailed a list of factual data, induding a legal description and infonnation on
pertlnenl physical characteristics. Land is known as a site when it is improved to the extenl thai it is ready to be
used for the purpose for which H was intended.
A site can have off-site improvements only, such as sewers, ulllity lines. access to roads, and so forth, thai make
It ready for its Intended use or development; or it can have on-site improvements, such as buildings, driveways,
landscaping, ate.
We carefully studied factual data In relation 10 the sub-market area characteristics that create, enhance, or detract
from the utifrty and marketability of the land or site as compared with competing comparable land or sites.
The purpose of site or land description and analysis i s to provide the following: (1) a description of the property
being appraised; (2) a basis for an analysis of comparable sales; (3) a basis for allocating values to land and
Improvements; (4) an understanding of the property being appraised and its present use: and (5) a foundation for
detennlning the property's highest and best use.
One principal objective of a land or site analysis Is to gather the data that tends to indicate the highest and best
use of the land or site as though vacant and to opinion land value in tenns of that use.
Fee simple ownership is the most common ronn or property ownership. It affords the most rights of ownership.
We routinely make visual chedks for easements and encroachments. However, a title report, deed search,
abstract or other means may be needed by the users or this report.
Site Sl:te. shape, dimensions, street frontage, width, depth and other factors may enhance or detract from value.
Comer loiS are considered more desirable for commercial tracts but of no greater value ror residential tracts.
Excess land is the portion of a property that is not necessary to serve existing improvements. Land-to-building
ratios are considered in this report.
25 David E Jones & flssocial:es
LOCATION MAP
(Approximate Boundaries- For Illustration Only)
Lo
SITE DATA
The following data serves as general descriptions of the subject. Attached maps further identify and describe the
stte.
LEGAL DESCRIPTION: The legal description is Lot 9, Block 40, Lindale Par1<. #4," Nueces County, Texas.
26 David E Jonct & !lstociates
LOCATION/ACCESS: The subject property is located at 625 Gordon Street, Corpus ChristL The she is accessed
by Swanther Drive. There are two driveways Into the sHe. Traffic speed is approximately 30 mph along Swanther
Drille & approximately 20 mph along Gordon Street. There are two traffic lanes at the site. The she is not a comer
lot. We observed moderate and typical passenger car traffiC on swanther Drille & Gordon street during our
Inspection. The Texas Highway Depanment has furnished us wnh a Traffic Count Map which shows the nearest
traffic count to be 380 vehicles per day along Botsford Street as of the 201 o traffic count period.
Traffic Count Map
~ 7
'0
14190
27 David E Jones & flssociats
Corpus Oulstl- Gordon Street Apartments - REVISED
PHYSICAL CHARACTERISTICS: The total size is 69,675 square feet or 1.5995 acres according to Nueces
County tax maps and records. The property is slightl y Irregular in shape. The sHe has about 250-feet fronting
Swanther Drive & about 215-feet fronting Gordon Street. The present improvements use all of the l and available
therefore, there is no excess land Due to the location or the Improvements in relationship to Swanther Drive &
Gordon Street. the improvements have average commercial vlslblltty. The stte parking has about 13,824 square
reel being asphatt surface In average condttion. There are 42 covered parking spaces (or 1 parking space per
unft) as well as additional uncovered spaces at the property entrance. The City of Corpus Christi requires multi-
famDy developments to have at leaS1 one parking space for every 2 bedrooms. This amount of pa!l(ing surface
does comply wHh current use and zoning regulations. When appraising a sHe with existing improvements and wtth
no change In Intended use being considered, the appraiser relies on the assumpllon lhat current utiiHies are
adequate based on questions posed to the property owner and our research with the appropriate utiltty companies.
TOPOGRAPHY & VEGETATION: The subject site is level to street grade. Topography maps show the site to be
at about 30-feet above mean sea level. The vegetation on site is native grass and trees. At the time or the sHe
visit, we found no standing ftood water on the subject We are not qualified to comment on designated wetlands.
Topography Map
28 David J onos & llociates
COrpus Christi- Gordon REVISED
FLOOD ZONE: According to the Federal Emergency Management (FEMA) Community Panel #485<4640169C
dated July 18, 1985, the subject appears to be located in a Zone C or -areas detennined to be outside 1 DO-year
Hood plain. Due to the natura of our resource, we racommend a civil engineer surwy the sfte.
Flood Map
Moderate to Low Risk Areas
tnecttw Ott
Ju!y 11, I t&
In communtiH th.ll P11ct>ate illlle NFI>, llood lm .. lnCt II--to II P<opet1y o""""sllldrlftors 111 thtst lonK
ZONE DeSCN>IIOII
AlGa of moderate Oood UIUDIIy lt'lt are; between the lrnrts o111\e 100-yea1 and SOO.,.::at ftoo<H. Art
8 Olld X (IIIOded)
arso used ro designate base noooPiaiM orresser nuaras. such as ras DY rr-ees tOOver
fl ood, or shallownoQdlng artat w.th avttagt dtp!M of len than Qnetoot or dra1111a rees tttt ttltn
square mile.
Cane! X
AJoa of mtnrmat nood nauAl, usutll'f dtpt<ttd on FIRMs as abOVt tht SOOo-,.or nooa tawl

29 David It Jons & llsso<iots
APPARENT EASEMENTS/ ENCROACHMENTS: A professional engineering survey was not provided and would
be needed to establish easements on the stte. We do, however, assume typical utiltty easements. We assume
there are no adverse easements or encroachments.
30 David Jonu & llnociat es
Corpus Christi - Gordon Street Apartments- REVISED
ZONING: The ~ y or Corpus Christi provided us with zoning maps, which show the subject to be located in an
"RM-1 Multi-Family One" zoned area. Generally, this zoning designation is intended to provide a variety or
housing types at multi-family densHies. Current business use appears to be allowed by the "RM-1" zoning
regulations. We found no signs or apparent zoning change on the subject property or adjacent properties at the
time of the lnspec1lon. Our appraisal is subject to there being no zoning change that would affect the subject ~ e
or adjacent sites.
Zoning Map
31 David 13 Jons & flssodates
Corpus Chrlstl- Gordon Street Apartments - REVISED
ABUTTING PROPERTY -We physically observed the abutting property in all directions to report the following
land use to the reader: north - single-family residences, east - Gordon Street & beyond are apartments, south -
single-family residences and west - Swanther Drive & beyond is vacant land. The subject ~ and the adjacent
sHes seem to conform to each other from a marlletabiltty standpoint There is no negative Impact created by use
and physical appearance from the adj acent sites.
Aerial Photograph
(Approximate Boundaries- For Illustration Only)
32 David c Jonos & flssociatos
OFF..SI'TE (STREETS) IMPROVEMENTS: Swanther Drive & Gordon street are two-lane streets
with concrete curbs, storm drains and concrete sldewall<s. These off-site improvements appear to be in good
shape and are maintained for public use. We observed no alleys or railroad rights-of-way on or through the site.
Traffic speed is approximately 30 miles-per-hour along Swanther Drive & approximately 20 mnes-per-hour along
Gordon Street. The nearest stop sign Is about 650-feet to the east ofthe subject site at the Intersection of Gordon
Street and Alameda Street.
TAX DATA: The subject property is assessed for property taxes by the Nueces County Appraisal District (CAD)
as found in Tax Account #260812. The real property is currently assessed at S1, 114,671 . Estimated annual
property taxes are S28,609 based on 20t 3 rates of 2.566544%. Because CADs are public Institutions, there are
often limitations on the comparable data which the CAD may use to assess a property. It Is likely the CAD did
not have access to the same breadth of comparable data that we had for this report. It is likely, for that reason,
that over my last 28 years of appraising properties in Nueces County, I have consistently found that assessed
values are typically 50% to 200% lower than property sales prices or pending sales prices within a three-year
time period. It should be noted, however, that many of the taxing jurisdictions Nueces County, collectively
(when combining county, city, school. EMS, college, etc.) are among the highest tax rates In the State of Texas.
Based on my experience and knowledge of this market, it seems reasonable to conclude that the Nueces
County tax rates are high to ofiset the fact that the appraisal district i s unable to assess properties at or even
close to their market values.
33 David Jones & llssotlates
SUMMARY: In summary, the subject has the following posHive and negative characteristics.
PosHive:
Location - highly desirable in growth area near employment centers
GOOd % of usable area
Good frontage-to-depth ratlo
Positive surrounding properties
All
Good access - driveways, tum lanes, moderate traffiC speed
Good visibility without restrictiOns and at road grade
Proper zoning
Typical easements
Not within 1 00-year flood zone
Level topography
Negative:
Unlikely sul>-dMdable
The subject site is typical and average of surrounding sites. WHh average exposure and vislbifHy, the sHe Is suited
for its current use. The frontage-to-depth ratio is considered adequate for typical utilization. Ingress and egress
has been rated as average from our obServation.
DEED RESTRICTIONS: A deed search is beyond the scope of this appraisal assignment. We, however, assume
no deed restrictions exist that would adversely affect the value, use or marl<.etabllity of the subject site. If the
subject sHe is restricted by private deed restrictions not provided to the appraiser the impact on value could be
significant. We have relied on the client's !Hie company to provide us with deed restrictions and have received
none.
HAZARDOUS MATERIALS & WASTE: We observed no material considered by us to be hazardous. However,
please see our Hazardous Material Disclaimer section set forth In the limiting Conditions.
DATA SOURCE/DISCLAIMER: Data used In the appraisal report regarding the stte was provided from various
outside sources deemed to be accurate. However, we make no warranties, expressed or imprled, regarding
son condHions, flood hazard, hazardous material, detrimental easements, encroachments, siz.e, z.onlng, traffic or
public and private utilities. \Nhen applicable the appraiser used the following sources: the client, Nueces County
Appraisal District, Nueces courthouse records, the Geological Survey and National Ocean Service, Federal
Emergency Management Agency, Texas Department of Transportation, of Corpus Christi Utility Department
and CHy of Corpus Christi Planning Department
34 David g. .Jonas & llsrodot"r
HIGHEST AND BEST USE
The Dictionary of Real Estate Appraisal defines Highest and Best Use as follows:
The reasonably probable and legal usa of vacant land or an Improved property, wtlich Is physically
possible, appropriately supported, financially feasible, and that results in the highest value.
Implied wHhln t hese definitions is recognition of the contrlbutlon of that speclnc use to community environment or
community developed goals, in addition to wealth maximizing or i ndividual property owners.
The subject property is compatible with the surrounding sub-market area. SHe use along SwantherOrlve & Gordon
Street is predominantly and single-family residential. There is some vacant land that could be used
for development In the immediate area.
The four criteria the highest and best use must meet are as follows:
1. Physically Possible Use
2. Legally Permissible Use
3. Financiall y Feasible Use
4. Maximally Productive Use
1. Physical possibility use dealS with issues of land development, construction on the developed site, and the
location attributes of the she such as:
Site- access, geological features (topography, etc.) & utility lines
Improvements
Location - linkages - a relationship a user has wi1h other land users
Physically Feasible: The subject propeny consists of 69,675 square feet or 1.5995 acres of land that is slightly
Irregular In shape. The lot Is relatively level and not located In a nood plain nor adversely affected by any
easements. The tract is not located along a major thoroughfare. All utilities are currently available to the site.
Therefore site size, general location, zoning, configuration, and topography would allow, but not necessarily be
limited to the uses: residential use
2. Legal permissible use deals with Issues of that control or limits the site development and construction of the
Improvements. Some examples are:
Zoning (usually the principal legal consideration
Subdivision regulations
Construction codes
35 David Jones & flssociotcs
Prtvate restrictions (easements, restrictive covenants. etc.)
Legally Pennlsslble: Legal restrictions as they apply to the subject property are prtvate restrictions and the
public restrictions of zoning. The appraiser is not aware of any private restrictions affecting the development of
the sne. cny of Corpus Christi "RM-1" MuiU-FamRy One zoning regulations generally allow a variety of housing
types at multi-famllydensnies. II appears thai the mulli-family apartments_are allowed by this zoning, bull he owner
should look to his own investigation to confirm this assumption. A deed search Is beyond the scope of this
assignment. We have no knowledge of deed restrfctJons on this sne. Multi-family and single-family residential uses
appear to be the only physically feasible and legally permissible uses.
3. Financial feasible focuses on the Income and cost aspects of the specific uses that are physically and legally
possible on the sne such as:

Income considerations

Operating expenses

sne acquisnion cos1s

sne development costs

Construction costs
Financially Feasible Use: There are many factors that dictate financial feasibilny such as supply, demand, utillly
(use). economic trends, ava ilabilny of financing, and others. The supply and demand for residential land around
the subject sne is mos11y in balance. The site is not located on a major thoroughfare, Swanther Drive & Gordon
Street. As shown in the balance of this report, the existing apartments are financially feasible under current ma!Xet
and economic conditions. Research has shown that the ma!Xet rental rates currently yield the potential of a net
operating Income, which when capnBlized, would exceed the estimated land value. Therefore, removal of the
existing Improvements and placing a new structure there may not yield the highest return,
36 David jones & flssociates
Corpus Christl- Gordon Street Apartments - REVISE.D
4. Maximum productivity deals with the judgment about which of the financially feasible uses generates the highest
value for the land.
Maximally Productive Use: For a sHe to be used at Its highest and best use, that use must have the highest net
return to the land while in context with the other limitation. and the proposed development must also be financially
feasible. As noted above, some foiTTl of muHI-famlly residential development would be most appropriate to the
site and most compatible with the immediale neighborhood.
Conclusion: It is my conclusion that the Highest and Best use of the site, as is, is use as an apartment complex.
The Highest and Best Use of the property, as If vacant. would be to develop as a residential
development.
A feaslbliHy study should be conducted before changing the current use.
37 David li Jones & flssoeiotcs
DESCRIPTION OF IMPROVEMENTS
EXPLANATION OF TERMS
The purpose of the building description section of this report is to convey to the reader the building's design and
layout and its construction details.
An accurate building description is needed to anal yze comparable sales, rental property and replacement values.
All three approaches to value rely upon the accuracy of the building description.
Many times we do not know the exact age ofthe subject's improvements. However, we can determine the effective
age by i nspecting the condition of the improvements. AlSo considered is the remaining economic life of the
Improvements. The remaining economic life is the estimated period over which Improvements continue to
contribute to property value.
Gross area is de.termined by physical measurements, unless otherwise noted. Net area is determined by
estimating the usable space. Local customs call for t he use of gross area to determine leasable space i n most
cases. However, ifthere is a great loss of usable space in the building, net area square footage Is used for leasable
calculations.
style and classification ratings were taken from data provided by the Marshall & Swift Cost Handbook. A thoro ugh
description is provided for each clas.sification of building improvements.
The functional layout of the rooms was analyzed. Functional obsolescence can be found to be either curable or
incurable. A cure may be reached by additions to the building, modernization or superadequacy curement. In
each case an appraiser must consider the feasibility of curing the inadequacy. Incurable functional obsolescence
caused by a superadequacy is measured by capitalizing the net i ncome loss due to the superadequacy.
Building compalibillly means that the building is i n harmony with its use or us.es an.d its environment. Market val ue
is frequently diminished by incompatibility of design. Compatibility is influenced by :zoning, historical dist ricts,
construction and maintenance costs, land value, physical features, trends and technology. Conformity means
that the form, manner, and character of structures correspond to one another.
38 David fi Jones & llssat:iatos
DESCRIPTION OF EXISTING IMPROVEMENTS
The following data serves as the general description of the subject's existing improvements.
The subject stte has five buildings each wtth two floor elevation. It is a construction class o apartment complex
with approxlmately 38,102 square feet. Construction Class D is defined by Marshall Valuation Service as building
with combustible wood or metal- frame construction. Exterior walls are typically non-bearing wood or sandwich
panel, or non-bearing masonry veneer. Floors and roofs are supported on wood or steel joists or trusses, or the
floor may be a poured concrete slab on the ground. The quality is Fair-to-Average and the condition is Fair-to-
Average. Quality and condition ratings are defined as follows: EXCELLENT - most expensive material available;
GOOD slightly less expensive but better than average comparable; AVERAGE. typical of market; FAIR. slightly
below typical and average; and POOR minimum material and workmanship. The subject is 50 years old with an
effective age of 25 years and 20 years of remaining economic life. The building is divided up into four, 3 bedroom/2
bath units; four, 2 bedroom/2 bath units; fourteen, 2 bedroom/1 bath units; sixteen, 1 bedroom/1 ba1h units; four
efficiency studios, an office, self-serve laundry facility and a swimming pool. It has central heat and air. The
subject has asphalt paved parking.
Building Description:
Foundation:
Structure/E.xtertor Walls:
Root:
Ceilings:
Aoors:
Partitions & Wall:
HVAC:
EledricaJ:
Plumbing:
Windows:
Restrooms:
Elevators/Stairs:
Project Amennies:
The subject buildings have reinforced concrete slab foundations.
The exterior wa lis are wood framed with brick veneer.
The roof is gabl ed with composition shingle covering.
The ceilings are blown-on texture over dry wall panels. There _are
decorative, incandescent light fixtures throughout the interior.
The floors are covered with ceramic tile and carpet throughout the
interior.
The rooms are textured and painted drywall over wood framing; 2' x
4 studs on 16" o.c.
The entire building has central heat and air conditioning.
It is assumed that the subject's electrical wiring complies with city
building codes.
It is assumed that the subject's plumbing complies with city building
codes
The windows are ftxed pane in aluminum framing.
The restrooms have ceramic sink and commode, mirror and
.ceramic tile fioor covering.
The subject displays no elevator. There are stairways on the
exterior of each building that lead to the 2"" floor.
The building has a sprinkler system. wnh smoke and fire detection
39 David Jones & flssodot;es
Site Improvements:
Handicap Faeiltties:
Land to Building Ratio:
Par!{lng lo Building Ratio:
systems.
The subject par!{ing area and driveways are asphak paved. There
is typical landscaping throughout the property.
The subject does not appear to comply wfth ADA requirements
1.83 to 1
0.36 to 1
40 DovitJ Fi .Jones & flssoclotes
DISCLAIMER.: We make no warranties, implied or expressed, regarding the or structural soundness of
the improvements. The scope of our assignment is limited to a walk-through and site inspection. Our estimate or
dimensions, layout, overall size, condition, and structural should not be considered the final authority and
should not take the place of a professional engineering report. It is assumed, but not warranted, that the
improvements meet all property zoning and building codes.
SOURCE.S:
Appraisers opinion
Marshall Valuat ion SeNice
Nueces County Appraisal District
41 David E Jon & flsrociato$
Corpus Chrlstl- Gordon Street Apartments REVISED
SECTION 5
42 David E Jones & llnoclates
SALES COMPARISON APPROACH
The Safes Comparison Approach to Value is based on sales of comparable improved properties. The sales are
analyzed as to Improvements, construction types. size, age and condition. Consideration Is also given to the
circumstances surrounding the saJe. Under the definnlon of fair mar1<et value. a sate must be between a wllfing
serr er and an Informed buyer. Safes analysis rs norma fly done by breaking down comparable sales Into u ~ price
such as price per square foot. Adjustments are made to the unit values to compensate for dissimilarities in
financing terms, condHions of safe, market conditions, location and physical characteri stics. Two types of
adjustments are common - percentages and doffars. Adjustments for market conditions and location are usually
derived fn percentage terms. We have chosen to use percentage adjustments throughout the process. We convert
to dollar adjustments at the summation.
COMPARABLE BUILDING SALES SEARCH SUMMARY
Typically, we would focus on the subject's sub-market for comparable sales; however, due to the lack of recent
sales acllvny, we expanded our search to Include the foff owlng Characteristics:
1. Location: The City of Corpus Christi, Nueces County, Corpus Christi MSA or South Texas
2. Improvement Size: 10 units to 100 units
3. Sources: MLS, Loopnet.com, Real Estate Brokerage Firms and Lenders
A sequence of adjustments is required wlhenever percentage adjustments are used. The first two adjustments
are for financing tenms and conditions of sale. The resulting value equals normal sales pnce. Next. any
adjustment for market condition Is made. Market condition adjustments usually represent Changes in value over
time. Finally, adjustments are made for dissimilarities in location and physical characteristics. The resulting value
reprasents the adjusted sa.les price which can be compared to the subject property. In searching the local marl<et
and surrounding areas, we found the following comparable building sales:
43 David Jortet & flssoe/at&s
COMPARABLE SALES
\ .. 4 ..
,, . \\ -----
l -.......; _ _...__ ..-

8<ty
44 David Jonu & fissodot;t<S
.,,
II
COrpus Christl- Gordon street Apartme.nts REVISED
COMPARABLE BUILDING SALES
Comparable No. 1
Identification: 238382
location: 2630 Waldron Road
City: Corpus Christi, Texas
Legal Description: GLENOAK PARK#2, BLK 1. LOT 1, Nueces County
Land Size: 4.1607 acres (161 ,240 square reet)
Building Size: 61,786 square f eet
II of Unit.s: 89 units
Average Unit Size: 694 square feet
Building Description: Class D, Garden style apartment s
Building Quality: Average
Building Condition: Fair-to-Average
Utilities: Municipal
Use at Time of Sale: Apartment Complex
Data Source: loopnet, Nueoes County Records
Date of Sale: 4/112011
Recorded:2011011353
Grantor: CORPUS CHRISTl PROP MGMT IILP
Grantee: SYMMETRY INVESTMENTS Ill L TO
Tenns and Conditions: Cash to Seller
Sales Price: $5,170,000
Unit Price: 556,090 per ~
45 DRvitJ E Jonos & flsso<iRtor
Corpus Chrlstl- Gordon street Apartments - REVISED
Comparable No. 2
Location: 1901 Rodd Field Road
Legal Description: l.AKEVlEW ACRES, BLK 2, LOT 13, Nueces County
Land Size: 4.837 acres (210,700 square feet)
Building Size: 81,786 square feet
II of Units: 98 dwelling units
Building Description: Class D, Garden style apartments
Building Condition: Average
Utilities: Municipal
Use at Time of Sale: Rental apartments
Data Source: Loopnet, Nueces County Records
Date of Sale: 41112011
Recorded:2011011358
Grantor: CORPUS CHRISTl PROP MGMT II LP
Grantee: SYMMETRY INVESTMENTS II LTD
Tenns and Conditions: Cash to Seller
Unit Price: $34,542 per unn
46 D11vid E Jonu & flsroclat:u
Corpus Christi- Gordon Street Aparbnents- REVISED
Comparable No. 3
Location: 1001 Cannel Parkway
Legal Descri ption: Lot1, Block 1, Cannel Vlllage, Nueces County, Texas
Land Size: 2.97 acres
Building Size: 72,549 SF
#or Units: 74
Average Unit Size: 949 square reel
Building Description: Class D, Apartment Complex
Building Quanty: ~ ~ e r a g e
Utilities: Pubflc
Use at nme or Sale: Apartments
Data Source: Loop Nel, Nueces CAD
Date or Sale: 05/06/2013
Recorded: 2013017632
Grantor: 1001 Cannel LTD
Grantee: ComCapp Cannel Manor LLC
Terms and Conditions: Cash to seller
Unit Price: 535,743 per unh
47 David JtJns & llssot:ictes
Corpus Chrlst.l- Gordon Street Apartments - REVISED
Comparable No. 4
Location: 6730 Everhart Road
Legal Description: Lot 28, Block 11, Club Eslates #1 . Nueces County, Texas
Building Size: 117.442 SF
#of Units: 165
Building Description: Class o Apartment Complex
Utilities: Public
Data Source: Loop Net, Nueces CAD
Date of Sale: 0612512013
Recorded:2013025861
Grantor: Chicago Trtle Ins Co
Grantee: CaHon Investments Inc.
Terms and Conditions: Cash to seller
Unit Price: 534,091 per untt
48 David li Jones & llssoclotcs
Comparable No. 5
Location: 3150 Peachtree street
Legal Description: Lot 9 & 10, Block J, Jackson Woods, Nueces County, Texas
Building Size: 124,640 square feet
#or Units: 136 dwelling units
Building Oe.scription: Class D, Garden style apartments
Building Quality: Average-to-Good
Building Condition: Average-to-Good
U111itles: Public
Data Source: Loopnet, Nueces County Records
Date of Sale: 12128/2012
Recorded:2012050673
Grantor: Corral street LTD
Grantee: Peachtree Holdings LLC
Tamns and Conditions: Cash to Seller
Unit Prtce: $82,408 per unij
49 !>avid II Jonu & flssodal:cs
BUILDING SALES ADJUSTMENT GRID
ITE!I
SU8.1Cl Comp..-oble t1 Comparable 12 Comparable '3 Comparable ...
Unit Site a Price m.oto SJ.C,S<2 Sl$,743 UM1 sn.-
Pr-rty Riohto co,.,...yed FeeS. FeeS. IIlii fees. !!l!
feeS.
"""
f $, !Ill feeS.
Sales Price Ul,oto Sl5,743 Sl.&,Oll1 S4Z;I08
flnanctna Terme Cash Ceth !Ill Ceoh l!ll Caeh !!l! Caeh l!ll Ceoh l!ll
Adju.stad Stlaa Price SA1otO SJ-4,542 $35,143 $34091 $62,408
ConcUtlon of $ale Nonnal H.orrnal
o,; Normal Normal
()')l
""'"""''
Jl!
HOtmal
!!!
Normal Slle 1 Price SRotO SJ.C,542 5:15,743 S340V1 sn.-
Marketing Condition tTime) C-urTent -'111
1l!
-'111
1l!
5113
.all
6113
.all
12112
2li
Time Adluattel Prlee $62,116 Sl5743 Sl4.0V1 $C,656
Phyalcal Adiuotments:
L-Ion cc cc 011 cc 011 cc
"""
cc 0'11 cc ll'lo
SWt (IQUire IHII 42 .. 11'11 ..
""
74 ... 116 20'4 136 16'1.
Qualrty Fair1AY<I AY<I -6'11 AY<I
.6!(
..... .n Ava AYQIGd -101fo
Condhlon flirlA"!! folr1AV!I 011 .....
-
Avg -6'1 A"!!
-
-IO'JI
Avo'"" lllllt Sue 8S4
"' "
144 S'i
-
""
712
.,.
!116 0'11
Tolal Phyaleal Acfiuatment
!1l!
,2li
ill!
Arll w_S.,_ Prlco
'"9113
$39,111 $35,028 UIM4 S$1.f10
Total & 01 Phyalcal 3 3

Total I 01 AdJustments 4 6 J

llot Phyolul Adluotments tl% ... -2% 14% -4%
Grose Phyalt:l l Adfuatments 21% m4 18'JI, 34% 36%
Median Veluo Per SF $39,178
Mun Value Per SF $48,635
EXPLANATION OF ADJUSTMENTS:
Tile appraiser explained adjustments as required. No explanation was narrated when adjustments were not
necessary.
Marketing Conditions crunel: Real est ate values tend to move upward or downward over time due to economic
conditions. We have studied the mal1<et and interviewed ma11<et participants to determine the affect or these
trends on our subject property. Uke-kind analysis was used to chart these trends. In this analysis we Isolate the
time factor <rom other tactorn to plot the effect of market condnions. When we Interviewed ma11<et participants
such as buyers, sellern and agents, we found that multi-family developments increased in value by about 5% per
year In 2006 and 2007. Values peaking i n mld-2008 then began dropping until mid-201 0. Property values have
Increase at a rate of roughly 3% per year since mld-2010. Comparable sales were adjusted accordingly.
all other factorn are equal. larger sites and/or Improvements tend to sell for less per unit than smaller sttes
and/or improvements. Tills factor is based on the supply of capital. Fewer people have a large amount of capital
to invesl Therefore, there are fewer qualified lnvestorn for large purchases. From Interviewing market
partlclpants, buyern, sellers and brokers, we have found that for every halving in size a -1 0% adjustment to the
comparable Is appropriate. For each doubling In size. a +10% adjustment reflects the typical buyers attitude about
value. Adjustments were made accordingly.
50 David Jones & flssociaeos
quality: Buyers are typically motivated to pay more for higher quality improvements than for poor quality
improvements. Quality of construction material and wor1<manship for each comparable was considered and
compared to the subject. The subject was rated as Fair-to-Average in quality. Marshall & Swift Valuation Service
indicates a 10% difference in the cost of an average quality construction Class D building and a good quality
construction Class D building. Adjustments were made accordingly.
Condition: Age and physical condition Is also a motivating factor for buyers and sellers. Each comparable was
compared to the subject. Those improvements In superior condition were given a negative adjustment. Those
comparables with improvements in inferior condition were given a positive adjustment. The subject was rated as
Fair-to-Average regarding condition. Adjustments were made accordingly.
Average Unit Size: Based on our research, we have estimated that for every 200 square feet of additional square
feet per unit there was a 5% increase in rental income. Adjustments were made accordingly.
SUMMARY OF BUILDING SALES
In order to detennine the most appropriat e unit value, we look at several factors and the overall picture created
by comparable sales. We pay special attention to the number of overall adjustments, net percentage adjustments,
gross percentage adjustments, mean (average), and median adjusted value.
Number of Adjustments: The comparable sales required between 3 and 4 physical adjustments and 3 and 5
adjustments including economic adjustments. This Is a typical and reasonable number of adjustments for this
type orland.
Net Percentage A.djustments: Net adjustments are used to calculate the final adjusted value of a comparable.
The net adjustments ranged from -4% to 14%. This Is a typical and reasonable ~ or adjustments for the
improvement(s) on the subject site.
Gross Percentage Adjustments: Gross adjustments are calculated by dropping t he posnive and negative factors
and looking at t he total adjustments. The gross adjustments ranged from 18% to 36%. Again, this Is a typical and
reasonable range for the improvement(s) on the subject site.
Median: The median value was found by dropping the highest and lowest adjusted values, which left an Indicated
value of $39,178 per unit.
Mean: We have totaled all adjusted values for an Indicated untt value of $48,635 per unit.
51 Dovitl li jones & flssociot;cs
Conclusion: All things considered, our conclusion that the best indication of value for the subject property is
somewhere between the adjusted mean and median prices, say $43,900. Since the subject has 42 we now
multiply the indicated price per limes the number of for an i ndicated Improvement value of S1 ,843,800.
$1,840,000 (Sales Comparison Value)
The conclusion cited above falls the range of the comparable both before and after the adjustment process.
52 David E Jont & Assodatcs
SECTION6
53
INCOME APPROACH TO AN INDICATION OF VALUE
The Income Approach is based on an assumption that there Is a relationship between the amount of dollar
income a property will produce and wlue. The Income approach is defined as wluing the present worth of
Mure benefds accruing to the rights of ownership of the property.
In this analysis, "future benefrts" are defined as the income to be received f rom rental Qease) of the property. A
discounted cash flow analysis Is constructed to convert this rental income into an Indication ofwlue. The purpose
of this analysis is to detemnine the !l(esentwlue or an income stream to be receiwd during the holding period, if
any, and disposHion or the property.
This anatyai& oooollta for:
1) Ma1ket rents for comporable space;
2) Gross annual Incurred in procuring the Income:
3) Olscolried prasent 11111\lt of net operating lnoomt.
Maillet rent is deflned as "The rental income that a property would most probably command on the open martlet
or i ndicated by current rents being paid for comparable space, (as of the effective date of the appraisal).
The first step is to estimate the gross annual income the property can demand on the market. The martlet rent
was estimated by analyzing comparable rental properties and actual contract rent, if applicable.
After the gross annual income was estimated, a vacancy and collection loss was deducted, resulting In the
effective gross income. The operating expenses are then deducted from the effective gross income to derive the
net operating Income.
Net operating Income may then be discounted to its present wlue over a projection (holding) period or directly
capitaliZed when a holding period is not needed."
54 Davit/ E Jort $ & flsrociatu
CONTRACT/MARKET RENT
Contract rent is the actual rental income accruing to a property under terms of a lease or contract. This amount
can be higher or lower than mart.et rent. Market rent is the rental income that a property would most probably
command In the open marxet as Indicated by current rents being paid and asked for comparable space as of the
date of the appraisal. Overage rent is percentage rent paid over and above the level or a guaranteed minimum
rent.
Gross rental basis calls for the lessor to pay all operating expenses. Net rents have the tenant paying all such
expenses. Leases may be from monthto-month, short-term of tess than 5 years, or long-term of over 5 years.
Short-term leases usually command a higher unn lease rate.
Lease agreements may have a foced payment and terms or they may have an e51:Sialion clause. The valuation
of rea simple interests in real eslate is based on the mar1<et rent the property is capable or achieving.
Both existing contract rent (If applicable) and market (potential) rent is considered in the valuation process. Other
lease considerations are escape clauses, tenant Improvements, purchase options. escalation clauses, renewal
options and the division of expenses between the lessor and lessee. All of these considerations may have an
effect on lease values.
Comparable leases are analyzed for dlsslmllarftles In characteristics such as size, location. appeal, construction
quality, condition, etc. The following comparable leases were analyzed and later adjusted to equal the subject
property:
55 Davie/ c Jone1 & flssoclates
COMPARABLE LEASES
Lease Comparabl e 111: Regency Square Apartments is a multi-famDy apartment complex located at 3333 S.
Alameda, Corpus Christi, Texas. The apartment complex offers one bedroom/1 bathroom, two bedroom/lwo
bathroom and three bedroom/two bathroom apartments. Rental rates range from $640 for 1/1 units which are 650
square feet, $750 for 212 units which are 900 square feet, and $880 for 312 units whiCh are 1,000 square feet. The
site amenities include an outdoor swimming pool, small basketball courts, small playground, gazebo and laundry
facility.
Unit Type
1bl1b
2b/2b
3b/2b
56
Sq. ft.
650
900
1000
Rent
$640
$750
5880
David t Jonu & fltso<iat41
Corpus Christi Gordon Street Apartments - REVISED
Lease Comparable #2: The Fountains is a muHi-famity apartment complex located at 1601 Ait1ine Road,
Corpus Christi, Texas. The apartment complex offers one, two and three bedroom apartments. Rental rates
range from $675 per n ~ to $675 per n ~ The sHe amenHies include an outdoor swimming pool.
Unit Type Sq. Ft.
1bl1b 685
2bl1b 907
2bl2b 1040
3bl2b 1150
57
Rent
5650
S725
$775
S875
David ff Jones & flssociato.s
Corpus Christi - Gordon Street Apartments - REVISED
Lease Comparable #3: Churchill Square Apartmenls is a apartment complex located at 4302
Western Drive, Corpus Chlisti, Texas. The apartment complex offers one and two bedroom apartmenls. Rental
rates range from S665 per unit to $900 per unit. The site amenities include an outdoor swimming pool, frtness
center and playground.
Unit Type Sq. Ft. Rent
1b/1b 652 $665
1bl1.5b 849 $795
2bl1b 817 $765
2bl2b 890 $795
2b/2.5b 1165 $900
68 David E Jones & flssoclotcs
Lease Comparable #4: Peachtree Apar1ments is a multHamHy apartment complex located at 3150 Peachtree
Street, Corpus Christi, Texas. The apar1ment complex offers one, two and three bedroom apartments. Rental
rates range from $475 per unit to $900 per unit. The site amenities include an outdoor swimming pool,
basketball courts, tennis courts and laundry facility.
UnrtType
Effl1b
1b/1b
2b/2b
3b/2b
69
Sq. Ft.
J90
672
1042
1059
Rent
$475
$683
$815
$900
D ~ v i d Jons & flsst>clt>ts
COrpus Christi- Gordon Street Apartments- REVISED
Lease Comparable #5; Harper's Comer Apartments is a mutti-famUy apartment complex located at 6602
Evertlart, Corpus Christi, Texas. The apartment complex offers one and two bedroom apartments. Rental rates
range from $645 per unit to $815 per unit. The she amenities include an outdoor swimming pool, basketball
courts, tennis courts and laundry facility.
Unit Type Sq. FL Rent
1bl1b 650 $645
1bl1b 700 $675
1bl1b 775 $725
2bl1b 850 $785
2bl2b 910 $815
Lease Comparable Summary; In general, the comparable data had an Indicated rent rate range of $475 to 5900
per unit per month. Ba.s.ed on the subject's quality. condition, location and available amenities. we have estimated
a mar1<et derived rental rate for each unlllo be $685 on average, which equates to $28,770 per month for all units
combined times 12 months plus the additional annual income of $468 the laundry room reported by the owner on
the rent roll (annualized) for an annual potential Income of $5,616. Aithough the subject was reported to be 100%
occupied as of September 2.4, 2013, based on our survey, tne average vacancy rate (including collections loss)
for similar facilities In Corpus Chrtstlls 7 .5%. We chose not to use a discounted cash flow analysis for stabilization
because the subject is currently at100% occupancy. The following Proforma reflects one year, but with average
vacancy rates and average operating eos1s.
60 David c Jonas & ,qssoc/otcs
Corpus Chr istl- Gordon Street Apartments - REVISED
RENT ROLL
BLDG SOFT TENANT ..B!.!i Water L.fJ
1 >4 Juanita 16
UNIT
1 A Tra<:v Wrioht S55 '2 $62 Jr.l014
1 M:uv Pena 16 $536 ?130/201 0
1lff 754 linda Bullard 5555 552 ill
Jllf2014
1237 LisaG rza $85 i886
1237 'rado i922
2/11RI 1064 Dustin ate S&!i >727 3/31/2014
2m8R 1125 Kala A.kmc s655 S90 74
2i2JBR I RUdY SiW 70
t,
UNIT Rtnr.
TYPE: SQFf l t NANI Rftf Water IRentTotal I LEI SE
22G A 1BR $555 5627

A Paul
=m
jJ6
Sal rna

i36
-
June l!MCV 17 11/20
-
1 i4
LJnda Hoooar s;;
$609
- TE!R
]5;
Brenciilbarra
.S555
$60
c
iii
l lawa S495
1--
1 '5 Evlllvn lindlev

-
c
1 i4 Paul Vela

2I2BR 1125
-Mir\llo1 T allez
S655 578 1733
. 3/31/2014
3/2/BR S850

215/2014
3: e
I
Laura 38riil 815/20
_ l4i F .isa M liZ 3
ichibi
-
Mana
-
EFf 607 TesterE tilev $36 31 5131/2014
3
2f1IBj
5650 212E

I Cadrief 5/31
;....,;.,
7,
1 6R
-754
Glfb&rt S72 S6 1/31/2014
1BR 754 LOrlil8' sm 572 $627
I TOTAL $14.070
Laundry Income I
$468
528.947 GRAtiD TOTAL
61 David Jonu & flssoclatas
INCOME APPROACH (Continued)
INCOME STATEMENT
In analyzing the mar1<et rent of various comparable properties, we have estimated the annual gross income for
the subject property. As an appraiser we must look at !he property as if n were on the open mar1<et for lease or
sale. A Discounted Cash Flow Analysis was not required since the facility has reached stabilization. Instead, a
Direction Capttalization method will be used using a one-year proforma. An Income Statement Proforma for one
year is found in t he followi ng section. We will now define and explain the items as follows:
Potential Gross Income (PGI) Is defined as !he total Income attributable to a real property at t OO% occupancy
before deduction for operating expenses. As previously shown, we have arrived at an estimated PGI of $350,856
via mar1<et renlal rates and the subject's most current (annualized) figures for addnional income.
Other Income is income derived from other sources other than rental income. In this sttuation, we included the
average monthly income for lhe coin laundry facility and water reimbursement from !he tenants which was
reportedly S5,616 per year.
Vacancy and Collection Loss (VCL) is defined as an allowance for reductions in potential rental income because
space is not leased or rents that are due cannot be collected. Our survey of the local market found the subject
property wm likel y have an average 7.5% VCL
Effective Gross Income (EGI) is defined a.s the anticipated income from all operations of the real property after
allowance for VCL.
Operating Expenses are defined as periodic expendttures necessary to maintain the real property and to
continue the production of the EGI Income. Operating Expenses are explained as foll ows:
Property Taxes were based on our estimated assessed value of the subject property after reviewing current tax
records and interviewing the county Appraisal District. Earlier in the report, we estimated annual taxes to be
$28,609.
Utilities Expenses include electrical, natural gas and water charges. These charges may or may not be paid by
the landlord. We looked to the market area via a survey to determine whether to expect the landlord or tenant to
pay these expenses.
Property Insurance costs as reported on t he owner's most recent profit and loss statement of $4,003.85 for the
first 8 months of 2013 seemed much lower than what we typically see for older apartment complex developments
62
Corpus Oulstl- Gordon Street Apartments - REVISED
as this equates to $0.16 per square foot per year ($4,003.85 / 8 months x 12 months= $6005.78 annualized I
38,102 square feet= $0.1576 per square foot per year). For this reason, we have chosen to estimate the subject's
property insurance expenses at $0.35 per square foot based on our experience appraising similar properties in
the mar1<et area.
Maintenance and Repair expenses are lncurTed on all property whh improvements. We have studied the market
for several years and found \his expense to be relative to the occupancy rate of the improvements and the physical
condition of the improvements. Our survey found that EGi times 5% is average and typical of similar buildings in
this particular sub-mar1<el area. Under a triple net lease, the tenant pays these expenses except when vacant.
Management charges are usually expressed as percentages of EGI as compared to local patterns. In this
appraisal we interviewed local leasing agents and found that typically the charge for outside management
is based on 8% of EGI. Even if the property is owner-managed, this expense must be considered in an appraisal
process.
Reserve for Repl acement Expenses provide for the periodic replacement of buiiQing componenls that wear out
over a period of time greater than one year. Examples Include roof covering, carpeting, plumbing equipment,
compressors, sidewalks, driveways and exterior painting. A certain amount of money should be sal aside for future
replacement of these hems. Appraisal standards call for allowance of2.5% times EGI.
Miscellaneous Expenses are contingencies for unforeseen expenses. We have noted that 1% times
EGI is typically ample for these contingencies.
Net Operating Income (NO!) is the estimated net Income after fixed and variable expenses. H does not indude
debt repayment, depreciation or federal income tax. NOI Is used by appraisers as a factor In capitalization to
deterTnlne value in the Income Approach.
The following page represents our estimated income proforTna for the first year of operating relative to the
appraised property:
63 Davit! e .Jonu & flssociotos
Corpus Chrlstl- Gordon Street Apartments- REVISED
INCOME PROFORMA
Gross Income As Estimated Annual
Rental Income S28,no $345,240
Other Income (Laundry) $468 $6,616
Potential Gross Income $360 856
Less Vacancy Credit Loss (VCL) 7.5% $26,314
Effective Gross Income $324,642
Operating Expenses:
Property Tax $28,609 $28,609
Utilities $49,550 $49 650
Property Insurance $13,500 $13,500
Maintenance & Repair (5% of EGI) $16,227 $16 227
Management (8%) $25,963 $25,963
Miscellaneous (1%) $3,245 $3245
Reserve for Replacement (2.6% of EGI) $8,114 $8114
Total Operating Expenses $145,208
Potential Net Income $179,333
a l u e ~ NOI divided by Cap Rate of 9.76% $1 839,317
ROUNDED TO: $1,840,000 (As Is)
64 David I! Jonu & flssoelotes
CAPITAUZATlON RATE
The Direct Rate is a method used to convert a single year's estimate of Income into a value
indication In the income approach. This may be a conversion in one step by dividing the income
estimate by an appropriate income rate or by muhiplying the Income estimate by an appropriate Income factor.
The relationship of Income and value is expressed by tne Income rates. The market comparables must reftect
risk, Income, expenses, and physical and locatlonal characterist ics similar to those of t he property being
appraised.
Several techniques are used to estimate an overall capitalization rate. The accepted methods i nclude:
(1) Derivation from comparable sales;
(2) Derivation from effective gross Income
multipflers:
(3) Band or investment- mortgage and equay components:
(4) Band or investment- land and building components; and
(5) The debt service coverage formula.
The direct capitalization formula applicable to t his type of valuation is;
Value = Net Operation Income (NOt) I Overall Capitalization Rate
Over the past twenty plus years, we have analyzed all types of real estate sales to arrive at the following conClusion
which represents our best estimate of today's direct capitalization rates relative to the subject property.
Comparable Sates: Location, surrounding property use, potential property use, zoning, utilhles, growth direction,
restrictions and investor's perceptlon of risk are all Important to determine capitalization rates. For example, two
otherwise equal properties, one located in a highly developed sub-market area and one located on the outskirts,
are usually judged differently for risk and potential. Likewise, an i ncome producing property with a history or high
vacancy rates may be less f avorable than a similar property with a history of low vacancy rates. Higher risk
requires higher capitalization rates and tower risk requires lower capitalization rates. Over the past twenty plus
years we have analyzed all types of apartment complex sales to arrive at the followi ng conclusion which represents
our best estimate of Ieday's direct rete relative to the subject property. Average and typical real
estate Investors seek a rate of between 8.5% and 13% for simnar properties.
65 David E Jonu & flssociates
Corpus Christl- Gordon Street Aparbnents- REVISED
CAPITAL.IZATION RATE (Continued)
The following dat a rejjarding t he Band of Investment Method and the Debt Service Coverage Technique was
provided by Rates. Realty Rates is a nationally recognized, independent research firm specializing In
surveys of discount rates and rates.
Band of Investment (Weighted Average Cost of Capital/ Method. Rates are extracted from the marl<et utilizing
a "safe" rate, usually Treasury Bills or 5 year to 10 year U.S. Bonds, then building rates by adding for factors of
risk, liquidrty, and management. The result is a marl<et derived caprtalization rate. The formula is (loan to Value
Ratio x Mortgage Constant) + ((1 - Loan to Value Ratio) x Equrty Dividend Rate or (M x Rm) + ((1 -M) x Re) =
Ro
(75% X 6.6913%) + (25% X 10.6120%) = 7.67%
Spread Ove-r 10-Year Treasurv
Otbt Covt-r Ratio
lrlttrest R.\tt
Amortizi tion
Mortgag .. Constant
Lo.ontooValue Ratio
Equity Ql..,idtnd A.itt
Malmum
Sprtad Over WYtat l rt asury
Otbc Cout r lgt Rldo

Amortiuticn
Mort91 g Const.wtt
l o.tn-toValle Aatic
Ec;,uRijiOi'.Jidend Rate
Av.np
Over 'tear
OebtCoveuge Ratio
nttltst Aa.tt
Amorlintion

REALTY RATE SURVEY
2.63X Moftg.agt
40 Equity
0.040439 OAR
sox Aat. s
S.SIY.
5.42;. OCR
U) OJO
90>< O.C4 a 439 o.ro;ms
Kl:< o.OS8110 o.oossn
1.71 0.1Xl221 o.so
\71 of lnvstmnt
7.35:1. Mo rt9.t9_ _ SO"/. 0.1(1221 O.OS6133
t5 E.quii!J 40X 0.152576. 0.061030
0.110221 OAR
60-'X S-u RatH
15.2$><

EqlitJ
OAR
Su rvted Rato.s
7!5Y. 0.066913
2!5'/. 0.108120
7.G7
66
[)ovid g. Jones & fl srociote<
Debt SeN/ce Coverage Technique. This is a reliable method used to derive a capitalization rate. This ratio is
the rate, or ratio, of net operating income to annual debl service. The Debt Service Coverage Ratio (DSCR) was
provided by local banks. The fonnula is OSCR x Mortgage Constant (Rao) x Loan To Value Ratio (L TVR) =
Overall Rate (OAR).
1.36 X 6.6913% X 75%" 6.83%
Summary and Conclusion: The approaches provided the following range of capita&zation rates: 8.05% average
based on Realty Rates national survey, 6.83% average based on OCR Technique and 7.67% average based on
the Band or Investment TeChnique. Aner all methods, we have chosen 9.75% a.s the most
appropriate capitafization rate. Our decision was heavily influenced by the age and condition of the
improvements.
67 David f jones & Associates
Corpus Chrlst.l - Gordon Street Apartments - REVISED
SECTION 7
68 David !! Jones & llssoclats
EXPOSURE TIME
There are basically two marl<ets for real property - lhe investor and the end user. Investors usually purchase for
speculative purposes. They anticipate that profits from holding the property will not only excaed cost but that return
on capital from real estate investments will oulpertonm other investments. For example, they may Invest in a single
tract and sell for a net profrt at the most opportune time. Or. they may buy a tract of land, subdMde It, sell
subdivided tracts and realize an overall profit. Or, they may lnveSI in an income producing property such as an
office or apartment complex.
End users purChase for additional reasons. They, too, expect a return on and return of capHal. They may avoid
lease payments. build equity and customize their improvements to their needs.
Meriteting time is a factor or competitive price, terms, of the property, location of the property, appeal,
number of competitive properties on the marital. of the sales agent. interest rates, general and local
economic conditions and other factors.
Previously, we stated similar sales in our Comparable Sales Section. These sales represent a good sample of the
confinmed sales of similar properties over I he past few years. Our survey found that these Comparable sales were
on the mari<el between three months and two years. The time frame of those sales and the number of competing
properties allows us to estimate a likely mari<etlng/exposure time ror the subject property of one year. That, of
course, Is based on the subject property being placed on the mari<et at a competitive prlca and with competitive
tenms.
69 David Jonc< & flstoaotet
Corpus Chr isti - Gordon street Apartments - REVISED
CORRELATION AND FINAL VALUE CONCLUSION
To detennine the value of a property an appraiser identifies, gathers, and analyzes general and property-specific
data; detennines highest and best use; and applies the Sales Comparison, Income and/or Cost
Approaches, as warranted. When using more than one approach, each approach results In a separat e and usually
different Indication of val ue.
The Sales Comparison Approach t o Val ue extracts mari(et data from t he lransactions ln110lvlng comparable
properties In similar mari(ets. Appraisal principles of Supply and Demand, Balance, Substhutlon and Externalities
all apply to this approach t o value. The Principle or SubstHution holds that the value of a property that is
replacaable In the market tends t o be set by the cost of acquiring an equally desirable substhute property. It
suggests that when substitute properties ara not available in the mari(et, the reliability of the sales comparison
approach may be less than that of the other approaches. The Sales Comparison Approach was considered
because a typical buyer would look to the marl<et to detennine a fair buying prica. The quality and
quantity of the data available was adequate with ample comparable sales data available from the local mar1<et.
The Income Approach is based on marl<et nentals for similar or comparable properti es pnevalllng in the anea. An
income-producing property is typically purchased by an investor for the purpose of maximizing his return.
Basically, the higher the earnings the higher the value will be. An investor trades a sum or pnesent dollars for the
right to receive future dollars. Appraisal principles of Anticipation and Change, Supply & Demand, Substitution,
Balance and Externalities are considered In this approach. The Principle of Ant icipation suggests that value is
created by the or benefits to be derived In the future, and value may be defined as the present worth
of an rights to future benetHs. The Income Approach was considered significant because apartments
are often used as income producing properties. The quality and quant ity of the data available was adequate with
data lease l nfonnation from the market anea.
70 Dvid J ones & Assor.itos
CORRELATION AND FINAL VALUE CONCLUSION (Continued)
The reconciliation step in the valua,tion process is the process in which an appraiser considers and selects from
attemate value indicators to arrive at a final value opinion. We have weighed all the significant and applicable data
of each of the two values to determine the following resufts:
Sales Comparison Approach - $1,840,000
Income Approach
- $1,840,000
We have chosen to use the Weighted Average to obtain the final indication of value. The Weighted Average is
defined by The Dictionary of Real Estate Appraial 4"' Addition as An average in which each component is
adjusted by a factor that reflects its retati.ve imporiance to the whole; obtained by multiplying each component by
its assigned weight, adding the products, and dividing the sum of the products by the sum of the weights. The
USPAP Appraisal Standard No. 1-5 (3) states consider and reconcile the quaiHy and quantny of data available
and analyzed within the approaches used and the appllcabllity orsuHablltty of t he approaches used." We interpret
this to mean that all three approaches should be considered and weighed. Using a scale of one (1) to ten (10),
wHh 10 being the most weight, the Sales Comparison Approach was given a weight of four (4), and the Income
Approach was given a weight of six (6). The following calculates the Weighted Average. Following the
spreadsheet we have explained each row of this weighted method.
FINAL OPINION OF MARKET VALUE "AS IS"- EFFECTIVE October 29, 2013
Weight
S.C. Approach 4
Income Approach li
FINAL VALUE 10
Value
$1 ,840,000
$1.840.000
$1,840,000
ROUNDED TO: $1,840,000
71 David E Jones & flsscdaces
CERnFICATION AND STATEMENT OF UMITING CONDITIONS
(SPECIFIC TO THIS APPRAISAL ASSIGNMENT)
CERTIFICATION: The Appraiser certifies and agrees that
1. The Appraiser has no present or contemplated future interest in !he property appraised; and neHher !he
employment to make !he appraisal, nor the compensation for n. Is contingent upon the appraised value of the
property. The appraisal cont ained herein Is not contingent upon a required minimum value, specific value or
approval of a loan. There are no undisclosed payments of fees, commissions or other things of value connected
in the procurement of this appraisal.
2. The Appraiser has no personal interest in or bi as with respect to the subject matter or the appraisal
report or the participants t o the sale. The "Opinion of Value" In the appraisal report is not based In whole or In
part upon the race, color, or national ortgln of the present owners or occupants of !he properties In the vicinHy of
the property appraised.
3. The Appraiser has personally Inspected the property, both inside and out, and has made an exterior
Inspection of all comparable sales listed In the report. To !he best of the Appraiser's knowledge and belief. all
statements and infomnation in this report are true and correct, and the Appraiser has not knowingly overlooked
or withheld any significant information.
4. All contingent and limHing condHions are contained herein {imposed by !he terms of the assignment or
by !he undersigned affecting the analyses, opinion, and condusions contained in !he report).
5. The Appraiser's analyses, opinions, and conclusions were developed to conform wHh the requirements
of the Code of Ethics and Standards of Professional Practice ofthe professional appraisal organizations wilh
which !he Appraiser is affiliated, and in accordance wHh the standards and reporting requirements of the FDIC,
FSLIC, FHLBB, the Office of the Comptroller of Currency, and the Texas Real Estate Commission.
6. All conclusions and opinions concerning the real estate are set forth in the appraisal report by the
appraiser, unless indicated as "Review Appraiser." No change of any item In the appraisal report shall be made
by anyone other than the Appraiser, and the Appraiser shall have no responsibility for unauthorized changes.
7. The use of this report is subject to review by duly authorized representatives of the professional
appraisal organizations of which the Appraiser Is affiliated.
8. David Earl Jones is state Certified as a General Real Estate Appraiser by the TALCB, Certificate
Number: TX 1322216-G, which expires on January 31, 2014. The appraiser(s) has extensive experience
appraising commercial property. Kamle Dorrts provided significant real property appraisal assistance other !han
those signing the report
CONTINGENT AND UMITED CONDITIONS: The certification of !he Appraiser appearing in the appraisal report
Is subject to the following conditions and to such other specifiC and limiting conditions as are set forth by !he
Appraiser in the report.
1. The legal description used in !he report Is assumed to be correct.
2. The Appraiser assumes no responsibilfty for matters of a legal nature affecting the property. appraised or
the title thereto, nor does the Appraiser render any opinion as to the mte, which is assumed to be good and
marketable. All mortgages. liens, encumbrances, leases, and servitude have been disregarded unless specified
within the report.
3. ills assumed that there Is full compliance wit.h all applicable federal, slate and local environmental
regulations and laws, unless a non-conformity has been stated, defined and considered in t he appraisal report.
4. The property is appraised as though under responsible ownership and competent management.
5. Any sketch in the report may show approXImate dimensions and is Included to assist t he reader in
visualizing the property. The Appraiser has made no survey of the property.
6. It Is assumed that all applicable zoning and use regulations and restrictions have been complied with,
unless a non-conformity has been stated, defined and considered In !he appraisal report.
7. It is assumed that the utiliZation of !he land and Improvements is wHhin the boundaries or property lines
of the property described and that there is no protrusion, encroachment or trespass unless noted wHhin the
report.
8. All references to square footage or dimensions of ~ h r land or improvement is considered to be
approximate.
9. Age for the purpose of depreciation Is considered to be Effeelive Age by obstruction. Actual age may or
may not be as stated, and was detemnlned by whatever records were available or estimated by comparison wfth
other properties, or construction techniques of a specific lime period.
72 David E Jones & flstoelotet
Corpus Chrlstl- Gordon street Apartments - REVISED
1 o. An appraisal at a later date than that used in the report could indicate com parables that were
unavailable to the appraiser as of the date of value. The comparables used were considered to be the best the
appraiser could validate at the time of the assignment.
11 If improvements are located on the property, H should be noted that termHes are prevalent in the area,
and a termHe inspection and certificate is recommended.
12. Wrthout prior agreement the Appraiser Is not required to give testimony or appear In court because of
having made the appraisal wtlh reference to the property In question.
13. Any distribution of the valuation in the report between land and improvements applies only under the
existing program of utilization. The separate valuations for land and building must not be used in conjunction
with any other appraisal and are invalid If so used.
14. The Appraiser assumes that there am no hidden or unapparent conditions of the property, subsoil, or
structures, which should render conditions of the property more or less valuable. This includes problems
relating to roofs, foundations, plumbing, eledrical, HVAC, appliances and others, which require an evaluation by
experts In these respedive disciplines. The Appraiser assumes no responsibility for such factors.
15. Information, estimates. and opinions furnished to the Appraiser, and contained In the report, were
obtained from sources considered reliable and believed to be true and correct. A reasonable effort has been
made to verify such infomnation; however. no responsibiiHy for accuracy of such Hems furnished to the Appraiser
can be assumed by the Appraiser.
16. This appraisal report may not be reviewed by anyone other than the person(s) and/or organization for
whom the raport was addressed wHhout written permission from the undersigned appraiser. Compensation lor
the appraisal report does not depend upon the acceptance of the report by a reviewer.
17. Disclosure or the corrtents of the appraisal report is governed by the Bylaws and Regulations of the
professional appraisal organization wnh Which the Appraiser Is affiliated.
18. Nefther all, nor any part of the content of the report, or copy thereof (including conclusions as to the
property value, the identity of the Appraiser, professional designations, reference to any professional appraisal
organizations, or the firm with which the Appraiser Is connected), shall be used for any purposes by anyone but
the client specified in the report, the borrower If the appraisal fee Is paid by same, the mortagee or its
successors and assigns, mortgage insurers, any state or federally approved financial Institution, any
department, agency, or instrumentaity ofthe United States or any state or the District of Columbia, wHhout the
previous written conserrt of the Appraiser; nor shall it be conveyed by anyone in the public domain, other
appraisers, real estate agerrts. news agencies, sales agencies. or other media, without the written consent and
approval of the Appraiser. Any person distributing any part of this report or any conclusion of this report to any
person or agency wtlhout permission from David Earl Jones will be held fiable for damages caused thereof to
the signers oflhis report.
19. On all appraisals, subjed to satisfactory completion, repairs, or amerations, the appraisal report and
value conclusion are contingent upon completion of the improvements in a wortunanNke manner and in a timely
manner before marl<et conditions change.
20. As part of the compensation agreement relatlng to this report the sefter{s), buyer{s), lender;(s) andfor
anyone else benefrtlng from the use of this report are required to thoroughly read this report and notify the
appraiser in writing within five wor11ing days of any errors or omissions, significant or otherwise, related to factual
data or reasoning. The appraiser has a reasonable time to respond to this notification and make adjustments, if
In the appraisers sole opinion corrections ere necessary, without penaity. Those using or benefiting from this
report agree to hold harmless and defend the appraiser against liability arising from the users failure to comply
with the agreement.
21. Unplatted property located within the jurisdiction or a municipality may require permits, which may or
may not be obtainable, and extensive expenses to plat or develop. It is beyond the scope of this appraisal to
obtain bids lor platting or developing. Any person or company relying on an appraisal of unplatted land and
desiring to develop the land should seek bids from qualified developerrouilders and obtain a study
before accepting the opinion value herein. Sellers or unplatted land may be subject to fines, fees or
assessments when selling unplatted land to others wtlhln the jurisdiction of a munidpalily. This appraisal does
not account for such fines, fees or assessments (past, present or future) and assumes there are none. However,
if fines are levied in these situations there could be an impact on value not accounted lor In this appraisal. These
are legal matters beyond the scope of this appraisal.
22 A real estate property inspection Is recommended by any purchaser of real estate. It Is also
recommended that this inspection be completed by a licensed professional. Real estate appraisers are not
qualified to complete a property inspection. This appraisal was completed wnhout knowledge of an inspection.
73 David .Jones & llssoclatos
Corpus Christi- Gordon street ApartJnents- REVI SED
Should an inspection report become available we reserve the right to revise the appraisal report and value.
ENVIRONMENTAL DISCLAIMER: The value opinion in this report is based on the assumption that the property
is not negatively affected by the existence of hazardous substances or detrimental envfronmemal condijions.
The appraisefs routine inspection of and inquiries about the subject property did not unveil any Information that
signifies the presence of environmental contamination. If such a condition exists it may or may not affect the
property negatively. Due to the "Jurisdictional Exception" rule of the USPAP we cannot comment on the
existence or lead paint, asbestos or radon. Il ls possible that tests and inspections made by a qualified
hatardous substance and environmental expert would reveal the existence of hazardous materials and/or
environmental conditions on or around the property that would negatively affect its value. An Environmental Site
Assessment is recommended for any property constructed prior to 1979.
ACCEPTANCE OF THIS REPORT VERIFIES ACCEPTANCE OF ALL PROVISIONS TO THE CERTIFICATION
AND STATEMENT OF LIMITING CONDITION
Dated: November t 2013

Appraiser:
74 Davit! c Jones & flssot:.latcs
Corpus Chr istl- Gordon Street Apartments - REVISED
SECTIONS
75 Daviti Jonas & lissocits
ENGAGEMENT LETIER
76
Oclob<r 17, 2013
Do\id EJones
Do\!id E loues & AsSO<iAI ..
8700 Manchaca, Suitt 300
Ausbn, TX 78748
R.E: 13-001354-01-01
GORDO:< STREET APARU'IEl''TS LLC I 260004486
625 Gordon Su'ttl
Corpu< Cboiso1, TX 78-16.1

50S S. M<C.oD Rd.
Edinb<q. lX 7lSl9
ww-K.wcbfilb.com
Lladalt Park if <4, BlO<:k -40, Lot 9,10,11,.11 and 13 t'uts County, Ts
Thi$ along ui lh lhe .. Assignment Swnmru'Y"' will to prepare n real
estate appnrisnJ on the referenced llfOI)el1y oo bebalf ofPf41!15Capotal llus eugagenl.nlos sub;ecllo tilt
specific 1erms and ronditions out.ltned in for Proposalln RIMS including, but not limited to the
comments lttld IllY rmaclled RefeteOC'e Doc:'llmerus.
The purpose of the valu.otion ts to trutr:hi value ru. defined by the Baud of Govnnors of the Federnt
ReSet\'e Syslem, m ao<'O!drulc. with TiUt XI ofFIRliEA { 1989). Rtproseotativ .. of PlainsCapilal BMI< may
pecfonu an ad.ministrnth-:eQf ltcbaic& of the- report. Your in tl:le reviewpnxtSs is
de-emed to be- an iwtgral part of valuation
It is mutunlly agreed thnt your completed report, in the spcc.i.fic.d number of c:opies, will be de.U-,ertd to tbe
undmi111"l on cr before lhe date specified below, and lhal lh total fee (including XJl"'l-'05) will 1101 txoeed th>
fee sptedied below. A lale penally IDllybe ..,essed atth> rate ofSIOO per day foreacb clay !be ffj>Orl rellllins
outslandmg beyood five bu'""'-<s days of tbe scheduled delivery date. PlairuCapiuU Bank res<n-.s Ill< righl to
rejecllhe report aod deny paynlelll for unoimely deli\""}', Pleas ..-. on the invoice your Tax ID #, unique
invoice#, the Appntisal O:der ;; nnd propMy
On. rt t J/0412013 Total Fet: S2,800 (inclusive ofaU expenses)
Where app1kable, lhe vllluntion and report ""' lo bt prepared in collfonnanoe with !he of the
FiruulciAIJJlstitutioru; Reform, R.O\'ety :md Enf=emenl Act {FIRREA); lhelnt=gency Appraisal and
EvalliOiioo Owdelin.s; lhe PlllinsCapitai.Bttnk Apprnisal S!Jindards; and lhe Vnif<nm St:mdaids of PIOfessiooal
Prncboe {USPAP). The report shoold wclode a staoement oflhe exposure tomtw>pbot mill< value {s)
PIJliniCapital BMI< reserves me to provtde a ropy ofUtt r.port ro lbe borrow..-, the borrowtr's
...,....,tative, or any fllird parly P"lllin.sc.piiAI BMI< may deem appropriat.. Furth..-, Plamsc.pibl B.1nk
rtSM"es tM tWrl to terminate t:hU essignme.nt at any time \\itbout nny further liabiltty or obbgatioo owed to
yon. tf in the jud8Jl""t of PlaiasC.pital Bank you have l'alled to pa'fon:n in am>rdaoce wilh lh tmm and
conditions 5<1 forth in this togaso-ulleU<'f. You will main!Jlin lhe coufidentialily and pnvacy ofcusto.,.,-
i:nform3rion ObL1ined in the course of this a.ssillllUleDt in complimce with USPAP aod P. TitleV of
!he Grnmm t.ach - Bliley Financial Modeniizalion Act. Ple""' include o signed copy of UU. lett..- as llll
a<ldendum 1o lh.compl.,edreport.
Sinoerely
.4p<al,.t.t, .... -y
Apprnisal Department
Pl!Ull5Capilal Bonk

i'Toj<et#
Plsc 1 ofl
P.rinted Name: Dal.'l d E. Jones
10/18/2013
77 David li Jones & IJ$$OCiate$
Summary
Unr:
ApproacbH to Yaluto:
Addition. I Work SroP":
Rporl Typ<:
VnluAtioa Scenarios:
As:s!gumot Commnt,s:
Coutact Infomati.ou:
Rport Di<hibution:
U"' - l<>m Uodmvriling
The intrnded US< of this appnisal is for loan und<rnTiting ;wd- crtdit by
PlainsCapit:ll B:mlc >nd-or p:ltticipants
US- B:wk
Ik intonded users of this report is PlaiosCapttal B:mlc :utd-or affiliates
Approach - Sales Comp3rison
Sales Comparison Approach
Appro>ch - Income
Income Approach
Appro>ch - Cost
Cosf Approach '
Inspect - Full Subject
An interior :utd cxtmor inspection of the subject propetty insufficient det1il to
detennine marx.tability
Self-Contained / Naffi\tivc
Premist
MorketV>Iu.
Ou.alifier
As-Is
Any >pproaches not utilize must be expl>tned in tho report I When completed. please
uplo3d an e.lectranic: copy of your report and invoic.c to hrtp:l/www
CADI SHUSHAN. Property Owner
!'hone: 361 3329889
PlainsCaplrnl Bonk Contoct: Azenetb Hrnnudz
Appraisal Oep:trtn=J
956 393 6873
JuenethJ{c:m.mdez@plainseapi!al coro
78 David Jones & fissociot.s
.Propony
Account
Propes1y o: leCI12
O"'Qraphc D-. 441$-0040-00tO
T)'pt R.tal
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Corpus Christl- Gordon Street Apartments REVISED
TAX DATA
LllOAU PAR.K4W2,,4"LT &All LTS IOTHRU 12W&4 48LT 138LK40
lie.p D.
Ownu
tcame GOROO\J STRF.n ARART\I.Hns llC Owner 0' SSSI653
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79 David Jones & flssadates
Corpus Christl - Gordon street Apartments - REVISED
% 100 0000000000%
To!a!Value: 51,1,.,671
Entity De aortptton Tax RAte Appraised Value Taxable Value Estimated Tox
C03 CITY OF CC 0 585264 51.114,671 s1.11.en 50.1'23.77
CAD Al'I'RAISAl. DISTRr 0.000000 $1.1,.,671 su r.671 so.oo
GllU NUECES COUIITY 0.3-10999 51,114.671 $1,114,671 S3.a01.02
HOSP HOSPITAL IXSTIIICT 0,1l8077 51,114,671 S1 , 1 14,671 S1,6SO.S7
JRC DEL MAR JR COLL 0 250666 SI,11U71 51' 1 14,671 S2,79o4.10
RFLI FARIJ TO LIICT ROAO 0004188 '51, 114,671 $1,114,671 546.68
SE CCISD I 237350 $1.114,871 51.114,671 513,792.38
!!Ale: 2.588SU
Taxes w/Curre,t 526,608.52
Taxts wlo Exef1l)tl:lns: 526.603.52
Improvement I Building
A.Jilmprovmeta valued at In tome
Improvement *1: COYUERCII.I. SUteCode: 81 l!Ying Area: 38102.0 aqft Value: NIA
Type Dualpbon
9w..lOil
Exte.nor Wa1 YearBul SOFT
MA lo!Ail AREA. APTC2 BR 1963 381020
CPY CANOPY APTC2 1963 4598.0
Ul1L UTILITY APTC2 1963 SJ.I.O
CP CARPOI!T A.PTC2 1963 6912.0
SP POOL APTC2 1963 1 0
ASD
ASP!W.T AI'1'C2 1963 13824.0
tmprCNement : .2: COIIIJfRCII>.l.-l'ERS.I'AOPERlY State Code: Bt Uving Area: Sllft value: NIA
L Type
Oe&criptlon
t!tlu'g
Exterior Wall Yur Bull SOFT
C:..pP P.;RSONAL PROPERTY APTC2 0 42.0
... Land
# Typo Ooecription Aor110 Sqft Elf Front Eff Oep1t1 Marital Value Prod. Value'
Al APARTliEIIT I.AI<O 6967S.co o.oo o.oo so so
DeiHl History (uot 3 Deed Transacdons)
Oeoct Otto TYPo OeacrtpUOn Gr.tntor Grantee Volume Pg Deed Humber
I 1/ 14120081200,00A.M W0V \'VIO&VA.H K6elRUST OOROOH $TR!ET APA.R" 20ti8001807M"'-VL
2 .cJ$1200 12'0000 ALl SV.TN SPWIOViMH ":.SON OROV::!UEE I( a 8 TRUST 2CG&Ct&.c. 'vswav 20-J.401&.4..14t/S\\'nV
80 David Jones & flssociotcs
Corpus Olrlstl- Gordon Street Apartments- REVISED
RENT ROLL
...
,...,
81 David li Jon & fissodat-.s
PHOTOGRAPHS
82 David !! .Jones & flssociates
83 ])avid E Jon s & llssoclats
84 Dovid Jones & flssociotes
85
Back of apt. buildings from Swatner Street
86 David Jones & llssoclat s
87 Dwitl E Jonat & flssocites
88 David Janos & flsro<ioter
89 David E Jones & llssociatos
90 J)ovid li .:fonct & llnociotct
,.
' ..
/ .....
I .__
91 David ff Jones & llsso<iotes
92 Dovid Jones & flstociotu
Corpus Christ I- Gordon street Apartments - REVISED
SECTION9
93 Dovid I! Jon.r & flssoclotcs
QUALIFICATIONS OF DAVID E. JONES
David E. Jones graduated in 1969, receiving his Bachelor of Science in Business AdminiSlnltion from Louisiana
Tech UniversHy. He concentrated on Business Admini strati on while at Louisiana Tech. He later went on to do
graduate wor1< at Texas A&M University, Corpus Christi. Mr. Jones wor1<ed as an Admlnlstratlw Manager for
Brown & Root, Inc. before moving into real estate. Mr. Jones obtained his real estate salesman license In 1974
and his broke(s license In 1979. He fanned David E. Jones & Associates in 1986. The following year he
earned his designation as a Master Senior Appraiser. In 1991 he added to his qualifications by acquiring his
State Certified General Real Estate Appraisal Certification. Since 1974 he has been brokerlng and appraising
commercial property throughout Texas. Mr. Jones has qualified and testified as an expert wHness In District
Court. Bankruptcy Court and State Court on several occasions. He has been a guest lecturer at several real
estate lnsUiutions. A partial resume of specific qualifications are outlines as follows:
Educational BaCkground
B.S. Degree from Louisiana Tech University, Ruston. Louisiana
Texas Real Estate BrokerUcense#0190997
State Certified, Texas, General Real Estate Appraiser, TX1322216-G
Designations - Present and Former
State Certified Tax Consuttant
Texas Real Estate Broker
Master Senior Appraiser, MSA
Environmental Assessment Consultant, EAC
Certified Commercial investment Member Candidate, CCIM
Specific Real Estate Courses and Seminars
Real Estate Appraising
Effective Court Testimony
Financial Analysis
Direct CapHallzation
Yield CepHalization
Environmental ~ e Assessment
Commerciallnwstment Appraisal
Guest Lecturerf Teaching Experiences
National Association or Master Appraiser
Real Estate lnstHute
HalllnstHute of Real Estate
Austin lnstffute of Real Estate
Professional Memberships - Present & Fonner
National Association or Master Appraisers
National Assoclallon of ConsuHants
National Society of Environmental Consultants
Certified Commercial investment Member Candidate. CCIM
Community Service and Awards
Mr. Jones was a member of Rotary International for several years. He was a charter member and President of
Optimist Club International. He was also an assistant Boy Scout Leader for two years and the coach for LHtle
Dribblers Basketban Association. Mr. Jones was a parent volunteer for the elementary school his children
attended. He also served two years on the County appraisal Review Board.
Types of Real Estate Appraisals
The following is a breakdown of the type commercial real estate appraisals performed by the firm over the past
94 David Jon t & flstoclates
few years: commercial appraisals, industrial appraisals, business enterprise appraisals, feasibility studies, site
evaluation and selection, marlteting studies, lease analysis, property tax evaluation, minority interest in LLC and
m ~ e d Family Partnerships, multiple family housing, subdivision development and review appraising.
Types of Business Appraisals
Mr. Jones has appraised appliance stores, agricu"uratlmplement business, agnculfural supply, an airport,
athletic clubs. auto parts. auto service, bakery, bed and breakfast, buDding supply, cafeteria, camp ground, car
wash, clothing store, computer center, construction company, convenience store, credit bureau, day care, dry
cleaners, electrical contractor, electrical supply, employment agency, fabric store, fanns, fast rood restaurant,
florist, rood processing plants, franchises, gift shop, glass Installation facility, grocary store, gun shop, imports,
laundry, liquor store, locksmith, lots and acreage, lumber retailer, machine shop, manufacturing plants, marine
sales/service, mobile home park, motels, office supply, oilfield service, pest control, plant nursery, plumbing,
printing, private utility company, ranches, rental tools. restaurant, RV sales/service, servlca station, shopping
canters. sports complex, engine repair, sports awards store, subdivisions, title company, tire store. travel
agency, trucking business. truCk stop. western wear, and wholesale distributor.
Special Assignments
David E. Jones end Associates was awarded a contract to appraise three resort community golf course projects
consisting or a golf couJSe, country club, pro shop, driving range, condominiums, marina, subdivision lots and
townhouse. The assignment was due in three months with locations in Texas, North Carolina and Florida. The
finn added and trained additional staff members and accomp6shed the task on time and below budget. The finn
has completed other special assignments such as an island in Corpus Christi Bay.
References
Provided upon request
95 David Jones & flssoclatas
COURSE STUDIES
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96 Davit/ jonos & flssoelatos
Corpus Christi Gordon Street Apartments - REVISED
'OI:txas appraiser 'Etcenstng anb trtiftration joarb
P.O. Box 12188 Austin, Texas 78711-2188
Certified General Real Estate Appraiser
Number:
Issued:
TX1322216 G
01/25/2012 Expires:
01/31/2014
Appraiser:
DAVID EARL JONES
Having provided satisfactory evidence of the qualifications required by the
Texas Appraiser Licensi ng and Certification Act, Texas Occupations Code,
Chapter 1103, Is authorized to use this title, Certified General Real Estate
Appraiser.
Jj:(1:i.:;
Commissioner
97 David t Jones & llssodot:.s
BILLED TO:
ADDRESS:
CITY/STATE/ZIP:
ATIENTION:
PAYABLE TO:
ADDRESS
CITY/STATE/ZIP:
PHONE:
FAX:
TAX ID#:
TYPE SERVICE:
SUBJECT ADDRESS:
SUBJECT CITY:
ALSO KNOWN AS:
COMMENTS:
FEE QUOTE:
FILE NUMBER:
DATE COMPLETED:
PLEASE PAY:
PLEASE PAY AFTER:
INVOICE
Plains Capital Bank
505 S. McColl Road
Ms. Hemande;z:
DAVID E. JONES
P.O. BOX 152513
AUSTIN, TX 78715-2513
800-551-2532
956-692-8273
459-94-8929
APPRAISAL
625 Gordon Street
Corpus Christi
Corpus Christi- Gordon Street Apartments
Multi-family residential
$2,800
102913
November 1, 2013
$2,800
$2,950 if paid after December 2, 2013
98 Daviri c Jones & flssociatcs

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