Martinique Apartments. Biloxi, MS Martinique Apartments $3,500,000

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1 $3,500, BR/1BA units, 1 3BR/1BA Manager's Apartment Two Stories, 112 parking spaces (including handicap) Gated Pool, Laundry Room, Built in 2001 Near -110 & -10 Keesler Air Force Base, Big Box Shopping Centers, Scarlet Pearl, mperial Palace, Boom Towne & Beau Rivage Casinos. Top Rated School District 2598 Pass Road, STE B Biloxi, MS

2 PROPERTY DESCRPTON Martinique Apts, Biloxi, MS Built in 2001 The subject property is improved with a 56-unit apartment complex, with 55 1 bedroom, 1 bath, and one 3 bedroom 1 bath "Manager's Apartment." The complex contains seven buildings. Six buildings are apartment units only. One building contains three apartment units on the second floor and one apartment unit on the first floor and an office and laundry room on the first floor. The complex also has an in-ground swimming pool that is approximately 20 x 40 feet. The pool is enclosed with a metal fence and is located near the front of the property, between Building A, which is the office/apartment/laundry building and Building B, which is a 10-unit building. The seven buildings are comprised of three building designs. Building A is the office/apartment building with the office and laundry and one apartment on the lower floor and three apartments on the second floor. Building B and Building E are 10-plex unit buildings, having 10 onebedroom apartments each. Buildings C, D, F and G are 8-plex unit buildings, having eight one-bedroom units each. Except for the manager's apartment, all units are identical in size, layout, interior decor and fixtures. Each building has an equal number of units on the first floor and second floor, except for the office building. Each unit is approximately 640 SF of heated and cooled living area. Owner pays for water, tenants pay power & cable. Page 2

3 EXECUTVE SUMMARY Acquisition Costs Purchase Price, Points and Closing Costs $3,550,000 nvestment - Cash $1,450,000 First Loan $2,100,000 nvestment nformation Purchase Price $3,500,000 Price per Unit $62,500 Price per Sq. Ft. $83.33 ncome per Unit $7,639 Expenses per Unit ($3,501) ncome, Expenses & Cash Flow Gross Scheduled ncome $427,787 Total Vacancy and Credits ($44,587) Operating Expenses ($196,059) Net Operating ncome $187,141 Debt Service ($151,087) Cash Flow Before Taxes $36,054 (After Tax Results) Total nterest (Debt Service) ($125,298) Depreciation and Amortization ($113,143) Taxable ncome (Loss) ($51,300) Tax Savings (Costs) $16,929 Cash Flow After Taxes $52,983 Financial ndicators Cash on Cash Return Before Taxes 2.49% Optimal nternal Rate of Return (yr 20) 9.52% Debt Coverage Ratio 1.24 Capitalization Rate 5.35% Gross Rent Multiplier 8.18 Gross ncome / Square Feet $10.19 Gross Expenses / Square Feet ($4.67) Operating Expense Ratio 51.16% Page 3

4 NTEROR & EXTEROR PCTURES Page 4

5 ANNUAL PROPERTY OPERATNG DATA Description Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Rental ncome $398,100 $410,043 $422,344 $435,015 $448,065 $461,507 $475,352 $489,613 $504,301 $519,430 Late Fees, Deposit Forfiet, App $29,687 $30,578 $31,495 $32,440 $33,413 $34,415 $35,448 $36,511 $37,607 $38,735 GROSS SCHEDULED NCOME $427,787 $440,621 $453,839 $467,454 $481,478 $495,922 $510,800 $526,124 $541,908 $558,165 Turnover Vacancy ($44,587) ($45,925) ($47,303) ($48,722) ($50,183) ($51,689) ($53,239) ($54,837) ($56,482) ($58,176) GROSS OPERATNG NCOME $383,200 $394,696 $406,537 $418,733 $431,295 $444,234 $457,561 $471,287 $485,426 $499,989 Expenses Maintenance ($56,122) ($56,122) ($56,122) ($56,122) ($56,122) ($56,122) ($56,122) ($56,122) ($56,122) ($56,122) Management Fees ($22,021) ($22,021) ($22,021) ($22,021) ($22,021) ($22,021) ($22,021) ($22,021) ($22,021) ($22,021) nsurance - Property ($27,132) ($27,132) ($27,132) ($27,132) ($27,132) ($27,132) ($27,132) ($27,132) ($27,132) ($27,132) nsurance - Flood ($4,942) ($4,942) ($4,942) ($4,942) ($4,942) ($4,942) ($4,942) ($4,942) ($4,942) ($4,942) Property Tax ($33,884) ($33,884) ($33,884) ($33,884) ($33,884) ($33,884) ($33,884) ($33,884) ($33,884) ($33,884) Electricity ($11,003) ($11,003) ($11,003) ($11,003) ($11,003) ($11,003) ($11,003) ($11,003) ($11,003) ($11,003) Water ($10,954) ($10,954) ($10,954) ($10,954) ($10,954) ($10,954) ($10,954) ($10,954) ($10,954) ($10,954) Sewer ($19,522) ($19,522) ($19,522) ($19,522) ($19,522) ($19,522) ($19,522) ($19,522) ($19,522) ($19,522) Garbage and Recycling ($10,154) ($10,154) ($10,154) ($10,154) ($10,154) ($10,154) ($10,154) ($10,154) ($10,154) ($10,154) Legal Expenses ($325) ($325) ($325) ($325) ($325) ($325) ($325) ($325) ($325) ($325) TOTAL OPERATNG EXPENSES ($196,059) ($196,059) ($196,059) ($196,059) ($196,059) ($196,059) ($196,059) ($196,059) ($196,059) ($196,059) NET OPERATNG NCOME $187,141 $198,637 $210,478 $222,674 $235,236 $248,175 $261,502 $275,228 $289,367 $303,930 Michael Madden, CCM, Page 5

6 PRO FORMA SUMMARY UNT MX & MONTHLY SCHEDULED Type Units Actual Total Pro Forma Total $580 $32,480 $650 $36,400 TOTALS 56 $32,480 $36,400 NVESTMENT SUMMARY Price: $3,500,000 Year Built: 2001 Units: 56 Price/Unit: $62,500 RSF: 42,000 Price/RSF: $83.33 Lot Size: 76,202 sf Floors: 2 Parking Spaces: 3.01 APN: Cap Rate: 5.11% Pro Forma Cap Rate: 6.66% GRM: 8.34 Pro Forma GRM: 7.6 FNANCNG SUMMARY Loan Amount: $2,100,000 Down Payment: $1,400,000 Loan Type: Fixed nterest Rate: 6% Term: 30 years Monthly Payment: $12,591 DCR: 1.18 ANNUALZED NCOME Description Actual Pro Forma Gross Potential Rent $389,760 $436,800 Less: Vacancy ($44,587) ($43,680) Misc. ncome $29,687 $24,000 Effective Gross ncome $374,860 $417,120 Less: Expenses ($196,059) ($184,127) Net Operating ncome $178,801 $232,993 Debt Service ($151,087) ($151,087) Net Cash Flow after Debt Service $27,714 $81,906 Principal Reduction $25,788 $25,788 Total Return $53,502 $107,695 ANNUALZED EXPENSES Description Actual Pro Forma Maintenance $56,122 $35,280 Management Fees $22,021 $28,000 nsurance - Property $27,132 $27,000 nsurance - Flood $4,942 $4,942 Property Tax $33,884 $33,884 Electricity $11,003 $6,000 Water $10,954 $10,648 Sewer $19,522 $18,912 Garbage and Recycling $10,154 $10,561 Legal Expenses $325 $8,900 Total Expenses $196,059 $184,127 Expenses Per RSF $4.67 $4.38 Expenses Per Unit $3,501 $3,288 Page 9

7 lllocx 12 l,.f 1 SCRPTON: /H. l01'3' 1 TNRU S, JHC.US/Vf C.DCK :S, AND ALSO, 1i (-NHTY, wtsslssu1. ' J 4. MA.HGA.R'S 1 "' :S kdck r2, ', COHTJJNNG Z.5 ' OW:DN """-"'«D to ntt : "..:..:DUtro. W S09"2.5'11"W 1.we :=._..._ -... " 00-0.'.llW( (."'::\ 0 - r..::: r-s rs 1ac.unr, 11--,c 11.--r,o, 1-c HWJll'tff( _..,hilll.tiu,.... OQ<a 'al.l( #Q To h,c C'Sl or "' M\.C',.) ""'5 WM;Y Wl,S ""u>aocd ntom ""' "'"'-l'lon Pt<(MD{Q ;:,r or, cw,or..,. rrrcc tporr,, u 1i i 2.fT "-tllty C$ U)(:ATCP N r,l,u, ZON( ""$ s" "" "t foh" ( TO...,. _,._w,,. Olf() 0 lijq) K!"Pecr s t" r ' 'l"'5 S A Cl.>.S3 ::!:. S'-""O.. :,. '...,;1, SURVE:Y Of 2.5 ACRE:S N H, W. ERANGAR'S MORA.NV/LL! SUBDVSON, AND BRAHG.M?'S GULr SHORCS ADDTON, JA.CKSON CO., MS, - O' J -...,.,,, C-,1'( --=a.j.1,,.. FOR: CRAY SU.Y, ft ALTO! 132 R 'rllost1'.ct W.MNC 1, llll.oxl, W:i Pl-: UJC.tH -,..ft'muy &.UOC,...,Oiuu ao..ie - "'...,, - (111) Jtt»JJ..,,. 1--

8 - ft....,.. -.,, , 1 "l'\ r.,_ ,, ( ', i,... 't i - l ' '. '! Typical One edroom FloorPl n 20' Closet.. Bath ale Bedroom 32' Kitchen r- s: 3 21 C.O Dining,

9 LOCATON MAP Page 12

10 AERAL MAP Page 13

11 DEMOGRAPHCS Population Characteristic 1 Mile 3 Mile 5 Mile Ages ,534 2,671 Ages ,990 3,323 Ages ,843 3,040 Ages ,743 2,923 Ages ,743 3,219 Ages ,724 3,490 Ages ,700 3,515 Ages ,695 3,365 Ages ,683 3,225 Ages ,771 3,211 Ages ,731 3,120 Ages ,625 2,909 Ages ,418 2,542 Ages ,147 2,053 Ages ,499 Ages ,080 Ages Race Characteristic 1 Mile 3 Mile 5 Mile Non Hispanic White 7,245 17,933 34,921 Population Black 1,476 4,518 7,034 Population Am n/ak Nat Household ncome 1 Mile 3 Mile 5 Mile Median Household ncome $38,912 $38,490 $43,858 < $ ,210 $10000-$ ,250 $15000-$ $20000-$ ,130 $25000-$ ,173 $30000-$ ,317 $35000-$ $40000-$ $45000-$ $50000-$ ,055 2,033 $60000-$ ,170 2,302 $75000-$ ,019 2,008 $ $ ,100 $ $ $ $ N/A > $ Characteristic Housing 1 Mile 3 Mile Housing Units 4,292 12,198 Occupied Housing Units 3,696 10,445 Owner Occupied Housing Units 1,776 5,603 Renter Occupied Housing Units 1,920 4,842 Vacant Housing Units 596 1,753 Page 14

12 DEMOGRAPHCS Population 1 Mile 3 Mile 5 Mile Male 4,961 (49.39 %) 12,531 (49.14 %) 23,291 (49.94 %) Female 5,083 (50.61 %) 12,968 (50.86 %) 23,347 (50.06 %) Total Population 10,044 25,499 46,638 Age Breakdown 1 Mile 3 Mile 5 Mile Ages (6.11 %) 1,534 (6.02 %) 2,671 (5.73 %) Ages (7.99 %) 1,990 (7.80 %) 3,323 (7.13 %) Ages (7.53 %) 1,843 (7.23 %) 3,040 (7.13 %) Ages (7.19 %) 1,743 (6.84 %) 2,923 (6.27 %) Ages (6.91 %) 1,743 (6.84 %) 3,219 (6.90 %) Ages (7.01 %) 1,724 (6.76 %) 3,490 (7.48 %) Ages (6.81 %) 1,700 (6.67 %) 3,515 (7.54 %) Ages (6.77 %) 1,695 (6.65 %) 3,365 (7.22 %) Ages (6.71 %) 1,683 (6.60 %) 3,225 (6.91 %) Ages (6.86 %) 1,771 (6.95 %) 3,211 (6.88 %) Ages (6.61 %) 1,731 (6.79 %) 3,120 (6.69 %) Ages (6.03 %) 1,625 (6.37 %) 2,909 (6.24 %) Ages (5.34 %) 1,418 (5.56 %) 2,542 (5.45 %) Ages (4.37 %) 1,147 (4.50 %) 2,053 (4.40 %) Ages (3.25 %) 849 (3.33 %) 1,499 (3.21 %) Ages (2.21 %) 589 (2.31 %) 1,080 (2.32 %) Ages (1.19 %) 336 (1.32 %) 654 (1.40 %) Ages (1.11 %) 378 (1.48 %) 799 (1.71 %) Page 15

13 DEMOGRAPHCS Household ncome 1 Mile 3 Mile 5 Mile Median ncome $38,912 $38,490 $43,858 Less than $10, ,210 $10,000 -$14, ,250 $15,000 - $19, $20,000 -$24, ,130 $25,000 - $29, ,173 $30,000 - $34, ,317 $35,000 - $39, $40,000 - $44, $45,000 - $49, $50,000 - $59, ,055 2,033 $60,000 - $74, ,170 2,302 $75,000 - $99, ,019 2,008 $100,000 - $124, ,100 $125,000 - $149, $150,000 - $199,999 N/A Greater than $200, Housing 1 Mile 3 Mile 5 Mile Housing Units 4,292 12,198 21,747 Occupied Units 3,696 10,445 18,433 Owner Occupied Units 1,776 5,603 10,069 Renter Occupied Units 1,920 4,842 8,364 Vacant Units 596 1,753 3,314 Race Demographics 1 Mile 3 Mile 5 Mile Population Non Hispanic White 7,245 17,933 34,921 Population Black 1,476 4,518 7,034 Population Am n/ak Nat Page 16