THE VERNON ON WASHINGTON MULTI-FAMILY

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1 THE VERNON ON WASHINGTON MULTI-FAMILY MULTIFAMILY INVESTMENT OPPORTUNITY Offering Unpriced - Free & Clear of Existing Debt 18 total units Built in 2017 KANSAS CITY, MO

2 OPPORTUNITY: NEW CONSTRUCTION

3 OPPORTUNITY AREA Real Estate Advisors is pleased to present the Exclusive offering of The Vernon on Washington Apartments, a 18-unit apartment community built in 2017, and located at 4445 Washington Street in Kansas City, MO. The property consists of 9 one bedroom one bath units, and 9 two bedrooms two bath units with a combined average square footage of 763. The Vernon on Washington offers investors the opportunity to purchase a well-constructed, new, and stabilized apartment community in one of Kansas City Premier rental markets that uniquely appeals to young professionals, by choice renters and medical professionals alike. OPPORTUNITY HIGHLIGHTS: THE OPPORTUNITIES & HIGHLIGHTS Stabilized New Construction Attractive Unit Layouts Luxury Finishes Walkability to both the Country Club Plaza and Old Westport Off-Street Secure Parking with Car Charging Station Continued Rental Upside SMART Apartment Technology AREA ATTRACTIONS Strategically located at 44th and Washington, The Vernon on Washington offers tenants the unique lifestyle of extreme walkability to two of Kansas City s most desirable areas. Named in the Project for Public Spaces list 60 of the World s Great Places, The Country Club Plaza comprises high-end retail establishments, restaurants, and entertainment venues, as well as offices. To the north, Westport is one of the oldest neighborhoods in Kansas City. Known for its blend of tasty eateries, trendy boutiques and popular nighttime hotspots. The constant buzz of residents and tourists gives Westport a distinct Kansas City experience. The property is also located adjacent to Saint Luke s Hospital of Kansas City a Tertiary care hospital with more than 450 skilled physicians. The Hospital is known for its Mid America Heart Institute which is currently undergoing a $330 million expansion.

4 WHY INVEST IN THE MIDWEST

5 WHY THE MIDWEST The Midwest is a cultural crossroads in the heart of the U.S. With low costs of living and an innate passion for community, residents of the region are proud and rooted in strong family values. Low home prices and access to fruitful jobs mean high discretionary incomes are prevalent. Affordable land, housing and low cost of living Midwest common sense Storied work ethic Culturally rich in food, arts & entertainment THE KANSAS CITY METRO The Kansas City region covers roughly 9,193 square miles about the size of New Jersey. KC s 2.5 million residents reside in 18 counties in Kansas and Missouri. Kansas City is an energetic city forged by a rich history, KC is brimming with culture and activities for locals and visitors alike. KC has invested over 6 billion dollars to create new attractions from performing arts districts to world-renowned athletic facilities. Not to mention more than 55 million Americans can get to Kansas City in less than a day s drive and KC s International Airport is just a three-hour flight from each coast. It was voted as one of the Best Cities to Live In by Money Magazine, Forbes Magazine and Livability.com. WHY INVEST IN THE MIDWEST Metro population of 2.1 million KCI airport is a 3 hour flight from each coast Home to American Century, Hallmark, Garmin & Sprint Saveur magazine called KC America s next great culinary destination First Google Fiber equipped city KC Royals World Series Champs! Accessible to 55 million Americans in less than a day s drive Travel + Leisure s #1 affordable getaway The birth place of Jazz Known as the City of Fountains Home to more than 100 BBQ establishments

POPULATION GROWTH 435,121 475,539 507,087448,157 456,622 442,369 459,787 481,420 1950 1960 1970

..515,022 AVG HH INCOME...$71,959 SOME COLLEGE OR HIGHER...515,876 TOTAL EMPLOYEES.

Cerner Corporation - 12,890 employees 2. HCA Midwest Health System - 9,924 employees 3.

, KC Assembly Plant - 7,720 employees 5. Children s Mercy Hospital - 6,969 employees 6.

6 POPULATION GROWTH 435, , ,087448, , , , , MINUTE DRIVE TIME DEMOGRAPHICS POPULATION...1,242,539 HOUSEHOLDS...515,022 AVG HH INCOME...$71,959 SOME COLLEGE OR HIGHER...515,876 TOTAL EMPLOYEES...751,100 ABOUT KANSAS CITY, MO TOP AREA PRIVATE EMPLOYERS 1. Cerner Corporation - 12,890 employees 2. HCA Midwest Health System - 9,924 employees 3. Saint Luke s Health System - 8,123 employees 4. Ford Motor Co., KC Assembly Plant - 7,720 employees 5. Children s Mercy Hospital - 6,969 employees 6. Sprint Corporation - 6,000 employees 7. DST Systems, Inc. - 4,990 employees 8. Garmin, Ltd. - 3,384 employees 9. Truman Medical Center - 3,225 employees 10. Prime Healthcare Services - 3,058 employees

7 THE VERNON ON WASHINGTON PROPERTY HIGHLIGHTS

8 Area Real Estate Advisors is please to present The Vernon on Washington, a 18-unit apartment community built in Located at 4445 Washington Street in Kansas City, MO. The Vernon on Washington offers investors a stablized turn-key investment opportunity to purchase a property that has recently been developed right in the heart of one of the city's most attractive entertainment locations, Plaza Westport. PROPERTY HIGHLIGHTS Name: Address: City, State: Units: Built: Stories: # of Buildings: Average SF: Roof: Net Site Size: The Vernon on Washington 4445 Washington St Kansas City, MO SF Pitched Composition Shingle 0.51 Acres Property Characteristics: Utilities Metering: Unit Mix: 9- One Bedroom/One Bath 9- Two Bedroom/Two Bath Avg SF: 650 Avg SF: 875 Avg Rent: $1,262 Avg Rent: $1,675 Rent PSF: $1.94 Rent PSF: $1.91 Private Balconies/Patios Washer/Dryer Off-Street Secure Parking Car Charging Station Granite Countertops Stainless Steel Appliances Amazon s Echo Dot Nest Smart Thermostats Phillips Smart LED Lighting Outdoor Lounge with Fire Pit All units are individually metered

9 PHOTOS/ AMENITIES

10 PROPERTY AERIAL

11 THE VERNON ON WASHINGTON FINANCIAL ANALYSIS

12 The Vernon on Washington 4445 Washington St. Kansas City, MO Property Information Number of Units 18 Units Rentable Square Feet 13,725 SF Average Square Feet per Unit 763 SF Year Built 2017 Forecasted Operations Scheduled Market Rent per Month Effective Gross Income (EGI) per Month Net Operating Income (NOI) per Month $26,433 per Month $29,609 per Month $23,197 per Month Real Estate Taxes per Unit Insurance per Unit Utilities per Unit Total Controllable Expenses per Unit Total Expenses per Unit $525 per Unit $300 per Unit $1,410 per Unit $1,878 per Unit $4,113 per Unit FINANCIAL ANALYSIS Management Fee 3.50% of EGI Replacements & Reserves per Unit $300 per Unit Assumptions Annual Increase in Income 3% Loss to Lease 0.5% Vancancy Rate 10% Annual Increase in Expenses 2%

13 UNIT MIX Units Type Unit SF Total SF Market Rent Monthly Mkt. Rent Annual Mkt. Rent Rent/SF Unit Mix % 9 2bd/2ba 875 7,875 $1,675 $15,075 $180,900 $ % 9 1bd/ 1ba 650 5,850 $1,262 $11,358 $136,296 $ % ,725 $1,469 $26,433 $317,196 $ % Income Scheduled Market Rent Less: Loss to Lease Less: Vacancy Net Rental Income T-12 Acutals T-6 Annualized Pro Foma $200,560 $298,200 $317,196 ($11,171) ($10,980) 0.5% ($1,586) ($71,460) ($93,321) 10.00% ($31,720) $117,929 $193,899 $283,890 FINANCIAL ANALYSIS Plus: Fees Plus: AirBnB Total Other Income Effective Gross Income $1,008 $976 $6,000 $28,560 $32,940 $32,949 $29,568 $33,916 $38,949 $147,497 $227,815 $322,839

14 Effective Gross Income $227,815 $322,839 Expenses Per Unit Actuals Per Unit Pro Forma Real Estate Taxes $1,022 $18,396 $525 $9,450 Insurance $395 $7,110 $300 $5,400 Utilities $1,446 $26,028 $1,410 $25,380 Contract Services $150 $2,700 $200 $3,600 R&M $621 $11,178 $550 $9,900 Marketing $219 $3,942 $50 $900 General Admin $383 $6,894 $150 $2,700 Management Fee 3.5% $617 $11,106 $628 $11,299 Replacement Reserves $300 $5,400 $300 $5,400 Total Expenses $5,153 $92,754 $4,113 $74,029 FINANCIAL ANALYSIS Real Estate Taxes, Insurance, & Utilities Per Unit: $2,863 $51,534 $2,235 $40,230 Total Controllable Expenses Per Unit: $2,290 $41,220 $1,878 $33,799 Total Expenses Per Unit: $5,153 $92,754 $4,113 $74,029 Net Operating Income $135,061 $248,810

15 CASH FLOW PROJECTION Income Monthly EOY 1 EOY 2 EOY 3 EOY 4 EOY 5 EOY 6 EOY 7 EOY 8 EOY 9 EOY 10 Scheduled Market Rent $26,433 $317,196 $326,712 $336,513 $346,609 $357,007 $367,717 $378,749 $390,111 $401,814 $413,869 Loss to Lease ($132) ($1,586) ($1,634) ($1,683) ($1,733) ($1,785) ($1,839) ($1,894) ($1,951) ($2,009) ($2,069) Vancacy ($2,643) ($31,720) ($32,671) ($33,651) ($34,661) ($35,701) ($36,772) ($37,875) ($39,011) ($40,181) ($41,387) Other Income $3,246 $38,949 $40,117 $41,321 $42,561 $43,837 $45,153 $46,507 $47,902 $49,339 $50,820 Effective Gross Income $26,903 $322,839 $332,525 $342,500 $425,563 $438,330 $451,480 $465,024 $478,975 $493,344 $508,145 Expenses Real Estate Taxes $788 $9,450 $9,639 $9,832 $10,028 $10,229 $10,434 $10,642 $10,855 $11,072 $11,294 Insurance $450 $5,400 $5,508 $5,618 $5,731 $5,845 $5,962 $6,081 $6,203 $6,327 $6,453 Utilities $2,115 $25,380 $25,888 $26,405 $26,933 $27,472 $28,022 $28,582 $29,154 $29,737 $30,331 Contracted Services $300 $3,600 $3,672 $3,745 $3,820 $3,897 $3,975 $4,054 $4,135 $4,218 $4,302 Repairs & Maintenance $825 $9,900 $10,098 $10,300 $10,506 $10,716 $10,930 $11,149 $11,372 $11,599 $11,831 Marketing $75 $900 $918 $936 $955 $974 $994 $1,014 $1,034 $1,054 $1,076 General & Administrative $225 $2,700 $2,754 $2,809 $2,865 $2,923 $2,981 $3,041 $3,101 $3,163 $3,227 Management Fee 3.5% $11,299 $11,638 $11,988 $14,895 $15,342 $15,802 $16,276 $16,764 $17,267 $17,785 Replacement Reserve $450 $5,400 $5,400 $5,400 $5,400 $5,400 $5,400 $5,400 $5,400 $5,400 $5,400 Total Expenses $5,228 $74,029 $75,515 $77,034 $81,134 $82,797 $84,499 $86,239 $88,018 $89,838 $91,700 Op Ex % of Gross Income 23% 23% 22% 19% 19% 19% 19% 18% 18% 18% Net Operating Income $21,676 $248,810 $257,010 $265,467 $344,429 $355,533 $366,981 $378,786 $390,957 $403,506 $416,445

16 FOR MORE INFORMATION GRANT KOLLMAN D E GKOLLMAN@OPENAREA.COM

PARK PLACE KANSAS CITY, MISSOURI. 34 total units Built in 1979 A 4800 MAIN ST, SUITE 400, KANSAS CITY, MO P W OPENAREA.

PARK PLACE KANSAS CITY, MISSOURI 34 total units Built in 1979 OPPORTUNITY: RECENTLY RENOVATED STABILIZED ASSETS OPPORTUNITY THE OPPORTUNITIES & HIGHLIGHTS AREA Real Estate Advisors is pleased to present