The Cottage Green

The Opportunity

The Location

The Property

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Tucker Knight

Senior Managing Director Mortgage Banking +1 (713) 469-4515 tucker.knight@berkadia.com

TUCKER FAMA

Financial Analyst +1 (281) 923-3856 tucker.fama@berkadia.com

JEFFREY SKIPWORTH

Managing Director +1 (214) 533-3322 jeffrey.skipworth@berkadia.com TX CRE #560404

KYLE WHITNEY

Director +1 (713) 724-1456 kyle.whitney@berkadia.com TX CRE #658451

JOEY RIPPEL

Managing Director +1 (601) 919-5155 joey.rippel@berkadia.com TX CRE #654288

CHRIS young

Managing Director +1 (972) 743-5742 chris.young@berkadia.com TX CRE #630674

2229 San Felipe Suite 1600 Houston, TX 77019 +1 (713) 974-1300 Berkadia.com

houston OFFICE

Houston, TX Office

2229 San Felipe, Suite 1600 Houston, TX 77019 +1 (713) 974-1300 | Berkadia.com

15770 Old Conroe Rd Conroe, TX 77384

Jed Dalton

Senior Financial Analyst +1 (346) 444-8993 jed.dalton@berkadia.com TX CRE #787068

MARKET

PRICE

ALL CASH

TERMS

2023/2024

year BUILT

TOTAL ACREAGE

314

TOTAL UNITS

285,672

TOTAL SF

910

AVG UNIT SF

$1,878

AVG RENT/UNIT

$2.10

AVG RENT.SF

58%*

OCCUPIED

Phase 1 of the community completed construction in 2023. It is comprised of 225 units and is 74% occupied, as of June 4, 2024. Phase 2 completed construction in April 2024. It is comprised of 89 units and is 17% occupied, as of June 4, 2024.

Investment summary

Investment Highlights

Designed for Best-in-Class Performance

One of few cottage-style, BTR assets in market and in such close proximity to The Woodlands

Captures true, gated, master-planned single-family community experience with picturesque ‘Main Street’ corridor, exclusive, first-to-market amenities, and individual homes with private entrances

BTR product can command premium rents and often has higher retention rates and lower turnover costs

Taxes comprise lower percentage of income due to lower millage rate in Montgomery County and no MUD in location

Lower insurance rates in Montgomery County than Harris County

Can decrease payroll and marketing expenses upon completion of lease-up

Directly north of The Woodlands, ranked as the #2 Best City to Live in America and #2 Best City Raise a Family in America (Niche)

The Woodlands is known to have more jobs (67K) than houses (49K) and single-family is nearly built out with plans remaining for only 200 homes

The Woodlands averaged an amount equal to 7 new people added and 5 new jobs created daily from 2010 to 2020 and as it approaches buildout, still averages 3 new people and 4 new jobs daily

Health care drives The Woodlands economy, representing 31% of the overall workforce in 2023

Outstanding area demographics include $156K average household income within one mile

Significant premium to own with $1.2 million average home prices in The Woodlands

The Woodlands is #1 for rent levels in Houston’s suburbs (MRI Apartment Data)

Strong Demand Drivers for Multifamily Investment

the property: Photo Gallery

the location

Unit Amenities

Community Amenities

Unit Amenities

Community Amenities

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Cottages

patio homes

porches

townhomes

Cottages

patio homes

porches

townhomes

Unit Photos

Community Photos

the property: Photo Gallery

Community Photos

Unit Photos

the property: amenities

investment sales and mortgage banking

Paul Harris

Senior Managing Director +1 (972) 764-8490 paul.harris@berkadia.com TX CRE #300179

Greg Smith

Senior Managing Director +1 (972) 764-8499 greg.smith@berkadia.com TX CRE #403280

CHRIS CURRY

Senior Managing Director +1 (713) 553-0151 chris.curry@berkadia.com TX CRE #566750

Cutt Ableson

Senior Managing Director Mortgage Banking +1 (713) 469-4503 cutt.ableson@berkadia.com

Leasing office Clubhouse lounge & catering kitchen with covered porch Conference room Complimentary Wi-Fi in common areas Fully equipped fitness center Luxe swimming pool with tanning ledge Sundeck with poolside loungers and covered tables Outdoor entertainment area with gas grills and picnic tables Tiki cabana and bar Italian string lighting Two large ponds Access to nature & walking trails Pocket parks throughout the community Private dog park Sand court Outdoor fire pit Adirondack seating area Clock tower Electric car charging stations Surface parking, covered parking, and detached/attached garages Front door package delivery service Valet trash service Gated community entrance

Community Amenities

1, 2 & 3 Bedroom cottages, patio homes and townhomes available Private front-porch entries 9’ ceilings Open-concept, spacious floorplans Hardwood-inspired flooring in living areas and bedrooms 2-inch faux wood blinds Double-pane, Low-E windows LED recessed lighting Ceiling fans in living areas and bedrooms Gourmet kitchens with custom-designed islands Kitchen pantries Stainless steel GE appliances Single basin undermount sinks with gooseneck faucets Modern Moen plumbing fixtures Quartz countertops Tile backsplashes White or grey shaker-style cabinets Walk in closets with wood shelving Linen closets* Walk-in glass showers Fully tiled shower surrounds Full-size GE washers & dryers included Utility closets Private fenced in front & back yards* Picket fences* Exterior storage closets* High-speed internet & cable access *In select units

Unit Amenities

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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.

Excellent tenant profile with average age of 39 and $104K average household income

70% to 80% retention of first set of renewals for Phase I leases

Newly Completed Phase II, Increasing Cash Flows, and Financing Flexibility

Highly differentiated, best-in-class, and trophy quality BTR asset

Phase II completion in 2024 has accelerated traffic, retention, and leasing velocity

Phase I nearing stabilization with 25% increased occupancy since end of last year

Mark-to-market opportunity for new ownership on 2nd generation leases

Incomparable location just north of The Woodlands, one of the most desirable residential addresses in the U.S.

More jobs than houses, expensive home prices, and barriers-to-entry for multifamily in The Woodlands, creating consistent demand for housing along its borders

The Cottage Green is offered with the unique opportunity to close both phases together or separately. Closing both phases separately can secure more attractive financing terms and maintain operational consistency through the stabilization of Phase II.

Incomparable and difficult to replicate site with ultra-low density of 7.93 units per acre that creates a wholly unique sense of place for residents

Heading into the prime summer leasing season, Phase I should stabilize in July and Phase II should stabilize in November.

Under construction pipeline for BTR product is one-fifth the size of the lease-up pipeline, illustrating the substantial decline in new supply and highlighting the opportunity to increase rents in an improved market in the future