Product Portfolio

Exclusively Presented

By

NATIONAL APARTMENT INVESTORS

Marty Cleckler
Rick Sherwood

1504 Main Street

Lubbock, TX 79401

500 Throckmorton
Fort Worth, TX 76102

877-661-STAR
 Previous Ownership

Arlington Arlington
127 units 147 units

Lubbock Euless
32 units 235 units

Fort Worth Arlington

114 units 303 units

Euless
192 units
Direct Investment
Whispering Oaks Apartments, Lubbock, Texas

Whispering Oaks was the first purchase of Marty Cleckler in August

1998 using friends and family members as investors. It was
purchased at a time when the market was very soft and should have
been sold when the market hit its peak in 2001 as the value
increased from $460,000 to $885,000. However, Mr. Cleckler
refinanced the property and the market turned rapidly due to an
over-supply in new construction in 2003 that taught a valuable
lesson as the market softened again. Lubbock can absorb 300 to
350 units per year through employment and population growth but
2003 and 2004 brought new construction representing almost 10
years worth of new supply. Naturally, supply and demand factors
are now watched closely. This property is still owned by Mr.
Cleckler.

Sponsorship

In a 90/10 equity partnership with a friend from Denver, the

following properties were purchased and renovated over the last
few years. All of these properties were Class C apartment
properties.

Mr. Cleckler and Mr. Sherwood oversaw construction and

management for the following portfolio which provided critical
lessons in construction timelines, marketing execution, and
management oversight.

Twin Bridge Apartments, Euless, Texas

Twin Bridge Apartments, consisting of 234 units, was purchased

in June 2005 for $4,300,000. Existing management, prior to the
sale, was having a hard time leasing the property and the lack of
cash flow was hindering required maintenance and the properties
curb appeal. At closing, the property was below 80% physical
occupancy. With the implementation of a name change, Bear
Creek, and a change in the on-site staff, occupancy was
increased to 93% within six months. After burning off
concessions and essentially eliminating loss to lease, the
property was refinanced in December 2006, based on an
appraised value of $8,050,000.

Castle Pines Apartments, Arlington, Texas

Castle Pines Apartments, previously Woodland Creek
Apartments, was acquired in June 2005, for $3,300,000. This
property consists of 132 units with a central boiler/chiller system.
Due to severe mismanagement, physical occupancy was less
than 70% and utility costs were twice the area average. During
due diligence, it was found that there were numerous
underground water leaks associated with the central
boiler/chiller. After closing, minor rehabilitation was performed
along with the name change. Costs for improvements were
approximately $400,000. As part of the rehab work, the
underground water leaks were repaired, significantly reducing
the existing utility costs. Based on current occupancy and the
reduction in utility costs, current value is $4,356,000.

Brentwood Country Estates Apartments, Euless, Texas

Brentwood consists of 192 units and was purchased from a

lender in January 2006 who had taken the property in foreclosure
proceedings. At $2,750,000, the property was priced
considerably below market value. At closing the property
showed a 40% economic vacancy and the property required
extensive renovations in order to be competitive in the market.
Obtaining an 80% loan to appraised value after stabilization,
allowed for the financing of the required $750,000 in rehab costs.
Renovations included interior updating, exterior paint, parking lot
repairs, pool and recreational equipment repair, new signage and
significant landscaping. Over the past five months, the rehab is
nearly complete and the lease up stage of the management plan
has been implemented. The anticipated reversion value, year
three, has been calculated at $6,850,000.

Arlington/Fort Worth Portfolio

This portfolio consists of three properties, Madison Creek,

Olympic Gardens, and Cherry Hills comprising 565 units.
Purchased in April 2005 for $9,150,000 and the assumption of
the sellers’ existing loan, all three properties showed tremendous
upside potential. Purchased from an out-of-state investor, due
diligence showed that all three properties needed extensive
repairs in order to demand the market rents for the area.
Renovations in excess of $2,500,000 took approximately one
year to complete. Based on the renovation and the current
leasing activity the properties have been appraised for
$15,250,000.
Realization

The total purchase price for this small portfolio was $19,500,000.
Loans for rehab and purchase were obtained and 20% equity was
injected. The culmination of these endeavors resulted in the
realization of property appreciation in excess of $14 million. Upon
refinancing in early 2007, NAI’s ownership interest was bought out and
rewarded with a 300% return on its initial investment.
Sample Photography
The Next Generation
With an aggressive value-add philosophy and a targeted
market focus, NAI expects to bring luxury to Class B residents.
Illustration Photography