ACQUISITION STRATEGY

Purchase at a Steep Discount – 10.5% Cap on existing Net Operating Income and less than $38k/unit compared to replacement costs of ~ $75k/unit

Upgrade Asset – Inject capital in high-impact, building exterior and common areas

Restructure Utilities – Prior property owner paid utilities and the cost was not passed through to tenants

Normalize Rents – Drive rents at each unit type to the maximum currently demonstrated at the property

EXECUTION

Capital Improvements: Invest $350,000 for property level improvements including landscaping, signage, paving/striping, window clean-up, and relocation of management office

On-site Management: Professional property management drove all new leases at market rent plus full payment of utilities

RESULTS

New Leases: 71 of 99 units at market rent and paying full utilities

Monthly Gross Potential Rent: Increased from $57,941 to $74,135

Utility Cost: Monthly property level utilities decreased from $8,997 to $7,455

INVESTOR RETURNS

Returns NET of all fees.