ACQUISITION STRATEGY

Purchase Off-Market at a Steep Discount: Secured at ~ 45% of replacement value

Install Professional Ownership and Property Management: Poor management practices, and no multifamily ownership experience, lead to poor operational execution, wide rent spectrum and inconsistent occupancy

Complete Significant Value Add: Deploy $1.5m to upgrade 100% of the unit interiors while enhancing the clubhouse and amenity package

Normalize Rents – Property significantly lagged market comparables in occupancy and rents

EXECUTION

Capital Improvements: 100% of units and amenities upgraded within 13 months, on time and below budget

Professional and Active Ownership: While completing capital improvements, increase occupancy from 60% at purchase to 95%

RESULTS

Increased Revenue: Collections increased 75% from month prior to purchase to final month of ownership

Increase NOI: Increased from $441,236 to $704,112 (Oct 2018 Income Statement annualized)

INVESTOR RETURNS

Returns NET of all fees.