altabluegoose

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THE OFFERING

Berkadia’s Multifamily Investment Sales Team is pleased to announce the exclusive listing of Alta Blue Goose (“The Property”), a 300-unit Class-A apartment community perfectly situated off Highway 290 in the burgeoning City of Manor, Texas. Developed by Wood Partners in 2023, The Property is built across 13.59 acres for a moderate density of just over 22 units per acre. The Property is conveniently located on East-West running Highway 290 which provides direct access to Austin’s core and is also within 1-mile from the onramp to the North- South running State Highway 130 (SH-130) which provides safe, efficient, and reliable access to many of the Austin MSA’s most notable entertainment and employment hubs. Additionally, Alta Blue Goose’s prime location allows residents quick and convenient access to all the major retail centers within Manor, including the highly anticipated retail center, Manor Crossing, which will sit at the northwest corner of Highway 290 and FM 973 and house retail giants such as Home Depot, T.J Maxx and HEB, among others. Alta Blue Goose’s proximity to downtown Austin and Manor coupled with direct access to SH-130 will provide a competitive advantage well into the future as more and more entertainment and employment hubs establish themselves within the massive growth corridor. Alta Blue Goose provides residents with brand-new, thoughtfully designed interior finish-outs. The interior amenities include luna pearl granite countertops, a kitchen island, stainless-steel appliance package, a sleek ceramic tile backsplash, custom cabinetry, expansive walkin closets, modern tile bath and shower decor, and nine-foot ceilings with fans. Alta Blue Goose also provides high-tech features including Energy Star full-size washers and dryers, modern plumbing and lighting fixtures, Wi-Fi programmable thermostats, USB outlets, and smart home features with Amazon Alexa connectivity in select units. Furthermore, The Properties community amenities are highlighted by a resort style swimming pool with a tanning deck and a kitchen and bar area, a spacious outdoor entertainment area with TVs and ample seating, a social clubroom with a kitchen, leisure space, and TVs, an easily accessible and reservable workspace with private offices and a conference room, an expansive fenced-in dog park, and a state-of-the-art fitness facility featuring machines, free weights and cardio equipment. Due to the thoughtfully curated amenity offering and proximity to major economic drivers, Alta Blue Goose has been the recipient of great leasing velocity realizing 22 leases per month. Alta Blue Goose provides an investor a rare opportunity to own a brand-new apartment community in one of Travis Counties fastest growing cities, and is perfectly positioned to reap the benefits of major economic drivers currently under construction and planned within the city and along SH-130.

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Berkadia®, a joint venture of Berkshire Hathaway and Jefferies Financial Group, is an industry leading commercial real estate company providing comprehensive capital solutions and investment sales advisory and research services for multifamily and commercial properties. Berkadia® is amongst the largest, highest rated and most respected primary, master and special servicers in the industry. This advertisement is not intended to solicit commercial mortgage company business in Nevada. © 2024 Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. Berkadia® and Berkadia Commercial Mortgage® are trademarks of Berkadia Commercial Mortgage LLC. Investment sales and real estate brokerage businesses are conducted exclusively by Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. Commercial mortgage loan origination and servicing businesses are conducted exclusively by Berkadia Commercial Mortgage LLC and Berkadia Commercial Mortgage Inc. Tax credit syndication business is conducted exclusively by Berkadia Affordable Tax Credit Solutions. For state licensing details for the above entities, visit www.berkadia.com/licensing.

Justin Chambers

Director 512.969.6838 justin.chambers@berkadia.com

Adam Sumrall

Director 512.960.2674 adam.sumrall@berkadia.com

Justin Cole

Managing Director 512.226.8711 justin.cole@berkadia.com

Kelly Witherspoon

Senior Managing Director 512.226.8706 kelly.witherspoon@berkadia.com

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ALL CASH TRANSACTION

Prospective investors can take advantage of the attractive financing options that exist in the marketplace today. With the combination of current market rate interest rates and an attractive in-place cap rate, Summer House presents an investor with a healthy cash-on-cash yield for a well-located, well-maintained apartment community.

PORT OF CORPUS CHRISTI CONTINUES TO SET NEW TONNAGE RECORDS

The Port of Corpus Christi, in operation since 1926, has become the nation’s leading exporter of crude oil since Congress lifted the ban on oil exports in 2015, and continues to capitalize on the pipeline infrastructure coming from the notable shale basins. Operating as the nation’s largest port in total revenue tonnage, the Port of Corpus Christi ended 2023 with customers moving more than 203 million tons of goods through the Corpus Christi Ship Channel, which was an 8.1% increase from last year. The new record can be attributed to a jump in crude oil exports to over 126 million tons in 2023, a 12.5% increase compared to 2022. The Port of Corpus Christi also saw a nearly 13.5% increase in agriculture commodities to a little over 2.2 million tons, as well as a slight increase in refined products to nearly 43 million tons. A record volume of liquified natural gas (LNG) totaling 16.3 million tons moved through the Port of Corpus Christi in 2023. The Port of Corpus Christi customers moved 51.8 million tons through the gateway during the 4Q 2023, a 4.4% increase from the same period in 2022. The leading commodities during 4Q 2023 were crude oil, refined products, and LNG. A record volume of crude oil totaling 12.2 million tons moved through the waterway in December 2023, 10.1% higher than the prior record set in September 2023. $17.0 billion in economic activity statewide Generates $19.9 billion in gross domestic product Supports 131,600 direct and indirect jobs across Texas

MAJOR CAPITAL INVESTMENT LEADS TO GROWTH IN CORPUS CHRISTI MSA

The Corpus Christi MSA’s continues to grow at a rapid pace with the population projected to increase 3% from 2023 to 2028 and median family income increasing 10.8% from 2023 to 2028 to $69,075. Additionally, the population within a three-mile radius of Summer House is forecast to grow 5.1% over the next five years to over 134,652 residents, nearly two times faster than the projected metro wide growth rate of 3.0%. Furthermore, Corpus Christi was rated by Lantern by SoFi as the number one best city to start a business in the U.S. Smart Asset ranks Corpus Christi 25th in the cities with best work-live balance survey. Ten million tourists visited the city in FY2021-2022, spending more than $1.5 billion in the local economy. Although tourism has always played a major role in the local economy, many other sectors are experiencing growth which is helping to further diversify the metro area and insulate the coastal region against unhealthy exposure to one sector. The energy, education, medical, and shipping sectors have seen $52B in regional investment throughout the Corpus Christi MSA in recent years. Projects such as the $809 million Harbor Bridge replacement and the $681 million Port of Corpus Christi improvement project, both with expected completions in 2025, are paving the way for the Port of Corpus Christi to continue to be the nation’s largest exporter of oil. The momentum at the Port has been staggering thanks in part to Port related investments such as Cheniere Energy’s $13 billion liquefaction plant, CC Polymers’ $1.3 billion plant, TPCO’s $1.3 billion steel pipe mill, and Exxon/SABIC’s $10+ billion facility. More recently, Steel Dynamics $1.9B capital investment in Sinton and Tesla’s in-house, >$1B lithium refinery underway in Robstown are further evidence of confidence in the Corpus Christi economy.

RESILIENT HOUSING MARKET FUNDAMENTALS INCENTIVIZES RENTING WITH FURTHER UPSIDE

According to Axiometrics, the Corpus Christi apartment market remains strong with an optimistic outlook. Occupancy is estimated to continue to trend positively in 2024 throughout 2027 with an overall average of 93.5%. Additionally, effective rent growth is estimated to average 2.475% from 2024 throughout 2027, which is positive for the overall fundamentals of Summer House Apartments. The median residential housing price in South Side Corpus Christi in January 2024 was $295,000, which represents a 4.1% increase as compared to January 2023. Active listings remain near 352 total listings and the market has 3.1 months of inventory. Overall, the PITI payments continue to incentivize renting as the estimated PITI payment of the median residential home near the Property would equate to a monthly PITI payment of $2,415/month* which equates to 174% of the overall Summer House market rent of $1,388/month.

*Assumes a 10% down payment, 7.0% Fixed Interest Rate, 30-year amortization, $1,500/year insurance policy, and a 2.13% Mill Rate

PREFERRED SOUTH SIDE LOCATION WITH EXCELLENT ACCESS TO EMPLOYMENT AND RETAIL

Summer House is situated in the heart of Corpus Christi's south side and offers unmatched accessibility to the entire metro given its proximity to South Padre Island Drive. The Property’s proximity to such a large concentration of employers and retailers is not only attractive to current residents but provides a significant employment base that will continue to drive demand for multifamily housing in the immediate area. Uniquely positioned just off Staples Street, Summer House is within minutes of many of Corpus Christi's well-known employment drivers including CHRISTUS Spohn Hospital - South, Corpus Christi Medical Center - Bay Area, Texas A&M University - Corpus Christi, NAS – Corpus Christi, and Corpus Christi Army Depot, among others. Additionally, the Port of Corpus Christi, the Corpus Christi CBD, and the Corpus Christi International Airport are roughly 12 miles from Summer House via accessible connections off South Padre Island Drive. Summer House also offers residents extremely quick access to the city's premier retail corridor located along South Padre Island Drive. Notably, La Palmera Mall, Moore Plaza, Sunrise Mall and Gulfway Shopping Center are all located roughly one mile away from the property at Staples Street and SPID. Additionally, several eateries and neighborhood conveniences including Andy's Tavern, Tokyo Hibachi Steak House, The VINE Juice Company, Wienerschnitzel, Authentic New York Pizza, Pooch Pad and CARisma Car Wash are within walking distance of the community.

SUMMER HOUSE RENTAL RATES OUTPERFORMING NEARBY CLASS A COMPS

Summer House has consistently demonstrated its ability to command premium rents that compete directly with Class A communities, thanks to its unique and timeless appeal. In December 2023, market rents at the property reached $1,388 per unit or $1.69 per square foot (PSF). When compared to Class A properties in the preferred south side area, Summer House market rents ranks just above Reserve at Saratoga ($1,327/unit) and Retreat by Watermark ($1,351/unit) and is just below Townhomes at Twenty01 ($1,734/unit) and Sage Corpus Christi ($1,515/unit). Overall, Summer House achieves impressive rents as compared to the competitive set and has consistently outperformed.

PROVEN VALUE-ADD OPPORTUNITY WITH ELEVATED INTERIOR POTENTIAL

The unit interior profiles at Summerhouse have been elevated to new heights by current ownership as 81 out of 136 units (59.6%) have been dynamically renovated with expansive granite peninsula-style countertops and the removal the upper cabinets making for a more open, modern look. Additionally, the units include GE stainless steel/black appliances, new cabinet fronts with modern pulls, modern tile backsplashes, gooseneck faucets, brushed nickel hardware, upgraded LED lighting fixtures, vinyl plank flooring throughout, and curved tub curtain rods. They have been able to achieve a $100/unit per month market rent premium. Furthermore, potential value-add improvements may include implementing private patio dog yards on ground floor units, upgrading the leasing office to a more contemporary design, and modernizing the exterior amenity offering including the pool and surrounding area along with the outdoor picnic/barbeque areas.

CONDO QUALITY, GARDEN HOME DESIGN WITH PRIVATE GARAGES FOR EVERY UNIT

Summer House is the only one of its kind on the south side, helping differentiate itself from other similar vintage communities, which feature traditional garden-style, surface parked site plans often with detached garages featured on perimeter boundary lines. Originally built in 1983 to condo specs, Summer House features a two-story, garden home design with private garages for every unit. The combination of these inherent characteristics has provided a noticeable competitive advantage and a stabilizing effect on operating performance.

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Major Arterials Close by Provide Efficient Connectivity to Austin Employment Drivers: Given Alta Blue Goose’s premier location, residents are within a 25-minute commute to over 169,000+ jobs throughout the Austin MSA via major corridors US 290 and SH 130. Notable employers include Tesla Giga Texas, Samsung's Semiconductor, Dell, Apple, Google, Meta, University of Texas at Austin, NXP Semiconductor Inc, and St. David’s Rehabilitation Center, to name a few. Premier Rental Demographics and Population Growth: Manor has been at the forefront of major in-migration, seeing population in the city balloon 70% from 2010-2020. Furthermore, with a median age of 27.4 years and a median annual income of $96,530, Manor is primed to benefit from the strong demographic tailwinds well into the future.

INVESTMENT HIGHLIGHTS

Newly Built Class A Property Featuring Modern Elegance: Built in 2023, Alta Blue Goose features community and interior amenities that fully cater to the modern renters’ desires and have been proven out by the strong demand to reside at the Property. Strong Lease-Up & Local Demographics Highlight Room For Rent Growth: Since beginning lease-up in May 2023, Alta Blue Goose has been the recipient of strong leasing velocity, realizing 22 leases per month with many of the leases being from young professionals working at Tesla, Applied Materials and Samsung. Heightened Homeownership Costs Incentivize Renting: With median home prices in the Manor submarket averaging $362,950, the premium to own versus renting is a staggering 172%, or $2,914/month to own versus Alta Blue Goose’s market rate of $1,612/month.

INVESTMENT HIGHLIGHTS

Equidistant to Tesla Gigafactory and Samsung: Residents at the Property are 11 minutes from Samsung (Austin), 19 minutes from the Tesla Gigafactory and 27 minutes from the Samsung (Taylor) development which is slated to open in 2025. These two major employers account for a staggering 26,500 jobs. Additionally, Opportunity Austin published an economic impact analysis on Samsung in 2023 and found that the Fortune 500 behemoth both directly and indirectly created 38,144 jobs and had a $26.8 billion impact on Central Texas. This monumental development has lead to Austin being recognized as the #1 semiconductor city in the nation. Lastly, it was recently reported by the Austin American-Statesman that Samsung is expected to get at least a $6 billion subsidy for the Taylor facility from the CHIPS Act and reportedly could add as many as 11 more chip production facilities in Central Texas in the coming decades. Crucial Economic Drivers Just Minutes from the Property: Recently, a 63-acre retail center was announced less than five miles from the Property. The development known as “Manor Crossing” will begin construction in 2025 with many notable retailers such as HEB, Home Depot, and T.J Maxx planning to set roots in the area. Most recently, Wonik Materials, a notable Samsung supplier purchased 24 acres in Manor with plans of supporting Samsungs ongoing efforts in Central Texas.

INVESTMENT HIGHLIGHTS

Andy Hill

Mananging Director512.226.8705andy.hill@berkadia.com

Brant Smith

Senior Managing Director512.226.8702brant.smith@berkadia.com

Cameron Hart

Senior Director512.226.8708cameron.hart@berkadia.com

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