URBAN 188 APARTMENTS 1601 W. CAMELBACK ROAD, PHOENIX, AZ 85015

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1 OFFERING MEMORANDUM URBAN 188 APARTMENTS 1601 W. CAMELBACK ROAD, PHOENIX, AZ EXCLUSIVELY LISTED BY NORTHMARQ MULTIFAMILY

2 TABLE OF CONTENTS Presented by: NorthMarq Multifamily Trevor Koskovich PRESIDENT T C tkoskovich@northmarq.com Bill Hahn EXECUTIVE VICE PRESIDENT T C bhahn@northmarq.com Visit us online at northmarq.com Phoenix Office 3200 E. CAMELBACK ROAD, SUITE 253 PHOENIX, AZ Jesse Hudson VICE PRESIDENT T C jhudson@northmarq.com PROPERTY INFORMATION... 8 RENT COMPARABLES FINANCIAL ANALYSIS SALES COMPARABLES LOCATION MAPS MULTIFAMILY, MANUFACTURED HOUSING & INVESTMENT SALES THIS DOCUMENT/ HAS BEEN PREPARED BY NORTHMARQ MULTIFAMILY FOR ADVERTISING AND GENERAL INFORMATION ONLY. NORTHMARQ MULTIFAMILY MAKES NO GUARANTEES, REPRESENTATIONS OR WARRANTIES OF ANY KIND, EXPRESSED OR IMPLIED, REGARDING THE INFORMATION INCLUDING, BUT NOT LIMITED TO, WARRANTIES OF CONTENT, ACCURACY AND RELIABILITY. ANY INTERESTED PARTY SHOULD UNDERTAKE THEIR OWN INQUIRIES AS TO THE ACCURACY OF THE INFORMATION. NORTHMARQ MULTIFAMILY EXCLUDES UNEQUIVOCALLY ALL INFERRED OR IMPLIED TERMS, CONDITIONS AND WARRANTIES ARISING OUT OF THIS DOCUMENT AND EXCLUDES ALL LIABILITY FOR LOSS AND DAMAGES ARISING THERE FROM. THIS PUBLICATION IS THE COPYRIGHTED PROPERTY OF NORTHMARQ MULTIFAMILY AND/OR ITS LICENSOR(S) ALL RIGHTS RESERVED.

3 4 NORTHMARQ MULTIFAMILY URBAN 188 APARTMENTS 5

4 PROPERTY & AREA PROPERTY SUMMARY UNIT MIX BREAKDOWN PROPERTY PHOTOS CAPITAL IMPROVEMENTS FLOOR PLANS AREA DESCRIPTION

5 PROPERTY SUMMARY OFFERING MECHANICAL Price Terms Market Price Cash - Fee Simple Heating / Cooling Hot Water Roof-Mounted Units One Compresser Per 3 Stacked Units Individual Thermostats Tankless Water Heaters (Two Mechanical Rooms Containing 6 Heaters in Each) Electricity Partially Reimbursed by Tenant SITE DESCRIPTION Water / Sewer Partially Reimbursed by Tenant Apartment Community Urban 188 Electric Wiring Copper Location 1601 W. Camelback Rd. Phoenix, AZ CONSTRUCTION Total Units 188 Style Courtyard Style Year Built 1970 Foundation Concrete Net Rentable Square Feet 94,320 Framing Concrete Block Number of Buildings 10 Exterior Painted Block Number of Stories 3 Roof Flat Sub-market Uptown Phoenix Parking Surface Asphalt Land Size 2.65 Acres PROPERTY TAXES Density Units Per Acre Number of Parcels 2 Parking Laundry 188 Uncovered Spaces Two On-Site Laundry Facilities (6 Washers and Dryers in Each) Tax Parcel Number A; -003A 2017 Property Tax $51,238 8 NORTHMARQ MULTIFAMILY URBAN 188 APARTMENTS 9

6 UNIT MIX BREAKDOWN UNIT TYPE # OF UNITS % OF COMPLEX SQUARE FEET TOTAL SF VACANT NON-REV RENT MAREKT RENT / SF AVERAGE IN-PLACE RENT AVERAGE RENT / SF TOTAL RENT TOTAL AVERAGE RENT Studio % , $695 $1.48 $650 $1.38 $75,060 $70,200 1BD/1BA % , $810 $1.50 $783 $1.45 $51,840 $50,112 1BD/1BA - Premium % 540 8, $870 $1.61 $835 $1.55 $13,050 $12,525 2BD/1BA % $950 $1.06 $950 $1.06 $950 $950 TOTAL / AVERAGE % , $749 $1.49 $712 $1.42 $140,900 $133,787 UNIT MIX BREAKDOWN AS OF: 3/8/2018 Premiums: Premium one-bedrooms include full-size range, stainless steel backsplash, LED cabinet lighting, and new dual-pane windows in bedrooms. $200 for furniture rental (12 units available). UNIT MIX BREAKDOWN UNIT MIX BREAKDOWN 2BD/1BA 1% PREMIUM ONE-BEDROOM 1BD/1BA 42% Studio 57% 10 NORTHMARQ MULTIFAMILY URBAN 188 APARTMENTS 11

7 Capital Improvements AREA OF WORK CAP EX $ PER UNIT Unit Interiors $930,036 $4,947 HVAC $540,000 $2,872 HVAC permits $12,000 $64 Roof $110,000 $585 "Tankless" Water Heaters $48,000 $255 Pools $50,000 $266 Pool Fencing $4,000 $21 BBQs $12,000 $64 Pedestrian Gates $6,000 $32 Access Control $20,000 $106 Driveway Gate $15,000 $80 Driveway Gate Controllers $13,000 $69 Yoga Decks and Water Features $10,500 $56 Landscaping & Irrigation $30,000 $160 Asphalt $65,000 $346 Dog Park $5,500 $29 Office $15,000 $80 Lighting $25,000 $133 Community Garden & Kitchen $15,000 $80 Laundry Rooms $6,000 $32 Mini-storage (S Set) $20,000 $106 Material Storage $15,000 $80 Construction Management $188,600 $1,003 Capex Fee $194,704 $1,036 Contingencies $314,841 $1,675 TOTAL CAPEX $2,665,181 $14,176 Cohesive, environmentally-conscious apartment community with mid-century modern and industrial design elements ADDITIONAL AMENITIES & FEATURES > > Fully-gated with key fob access > > Two new laundry facilities > > 35 storage units ($50/month) > > New apartment doors Community Garden + Harvesting Parties Community Garden + Harvesting Parties > > New windows screens > > Newly renovated interiors > > Along Metro Light Rail > > New gas BBQ grills Community Garden + Harvesting Parties Community Garden + Harvesting Parties Community Garden + Harvesting Parties HIGHLIGHTS 12 NORTHMARQ MULTIFAMILY URBAN 188 APARTMENTS 13

8 VALUE-ADD OPPORTUNITIES HIGHLIGHTS > > Installation of landlord owned in-unit washer and dryer will generate additional income ($50-$75 rent premium). > > Improve utility reimbursement plan. Current owner charges $90-$95 per month for utilities in addition to the rent. Similar properties charge up to $150. > > Installing covered parking spaces and/or carports can generate additional ancillary income. ASSET HIGHLIGHTS > > Major capital improvements were already addressed by current owner (see capital improvements page). This provides new investors the opportunity to focus on operations. > > Strategically located in the heart of Metropolitan Phoenix s business and cultural center, the property is in the hub of Midtown and Uptown Phoenix. > > Close to three different major freeways (less than two miles to the I-17/Black Canyon Freeway and just over three miles to the I-10/Papago Freeway and the SR-51/Piestewa Freeway). > > The area around the property is comprised of a dense population and high employment demographics (165,000 residents and 115,000 employees within three miles). > > The asset features a beneficial position with frontage along the light rail on Camelback Road, with an average of 80,000 vehicles going through the intersection of 19th Avenue and Camelback Road on a daily basis. 14 NORTHMARQ MULTIFAMILY URBAN 188 APARTMENTS 15

9 FLOOR PLANS NOT TO SCALE (108) STUDIO 470 SF (79) 1 BEDROOM / 1 BATH 540 SF (1) 2 BEDROOM / 1 BATH - FLOOR PLAN NOT AVAILABLE 16 NORTHMARQ MULTIFAMILY URBAN 188 APARTMENTS 17

10 PROPERTY EXTERIOR PHOTOS 18 NORTHMARQ MULTIFAMILY URBAN 188 APARTMENTS 19

11 PROPERTY INTERIOR PHOTOS 20 NORTHMARQ MULTIFAMILY URBAN 188 APARTMENTS 21

12 AREA DESCRIPTION URBAN 188 AREA BREAKDOWN AREA INFORMATION Urban 188 Apartments is located at 1601 West Camelback Road in Phoenix, Arizona. The property is situated immediately east of the southeast corner of Camelback Road and 17th Avenue. There are several schools within one mile of the property including Osborn Middle School, Midtown Primary School, Valley Lutheran High School, Rancho Solano Private School, and Solano School. Nearby grocery store options include Fry s Food and Drug Store, 366,000 WORKFORCE SOURCE: COSTAR/ 5-MILE RADIUS 34,000 BUSINESSES SOURCE: COSTAR/ 5-MILE RADIUS 40,000 TRAFFIC COUNT SOURCE: COSTAR/ EAST ON CAMELBACK RD. 35 AVERAGE AGE SOURCE: COSTAR/ 1-MILE RADIUS AJ s Fine Foods, and Bash s. Access to Interstate-17 (Black Canyon Freeway) is less than two miles west. There is an abundance of manufacturing and warehousing employment nearby along Interstate-17, one and one-half miles west of the property. Urban 188 is conveniently located along the Metro light rail line with a station located just two blocks west at the intersection of 19th Avenue and Camelback Road, providing easy access to Downtown Phoenix, Tempe and Mesa. Proximity to the light rail has historically been $206,200 SF HOME MEDIAN LIST PRICE SOURCE: TRULIA/85015 $40,200 MEDIAN HOUSEHOLD INCOME SOURCE: COSTAR/ 3-MILE RADIUS 9.13% POPULATION GROWTH SOURCE: COSTAR/ 1-MILE RADIUS 94% SUB- OCCUPANCY SOURCE: COSTAR/ MIDTOWN shown to improve property values as it encourages redevelopment and gentrification of the surrounding areas. The immediate neighborhood surrounding Urban 188 comprises a mixture of single-family homes, multifamily projects, and commercial developments. Nearby shopping malls including the JcPenney and Target anchored Christown Spectrum Mall, located less than one mile north of the property, and the Macy s anchored Biltmore Fashion Park, less than four miles east of the property. Additionally, Phoenix Baptist Hospital is located within one mile northwest of the property. Nearby Junior Colleges include Phoenix College, located at 15th Avenue and Thomas Road, and Rio Salado located at 19th Avenue and Northern Avenue. There is an abundance of manufacturing and warehousing employment to the north along the Interstate-17 creating major housing demand in the area. SUB ASKING RENTS INCREASED OVER 18% SINCE 2015 SUB ASKING RENT PER UNIT SUB ASKING RENT PER SQUARE FOOT $893 $1.17 Urban 188 is minutes from Arizona State University downtown campus and Grand Canyon University. Arizona State University has three campuses in the Phoenix Metropolitan Area that included an enrollment of over 100,000 undergraduates in Grand Canyon University (2015 on-campus enrollment: 14,500 and 2015 overall enrollment: 74,200) is $132 INCREASE $0.18 INCREASE located less than a mile from Urban 188 and is aggressively growing their presence as an $0.99 $761 educational institution. GCU is currently undergoing a campus expansion project that will include adding a variety of residence halls, classroom buildings, dining facilities and student amenities. This has significantly increased the demand for housing in the area which will continue as GCU expands within their 100 acre site. 22 NORTHMARQ MULTIFAMILY URBAN 188 APARTMENTS 23

13 NUMBER OF JOBS IN THE AREA ±9,800 JOBS WITHIN A ONE MILE RADIUS FROM THE PROPERTY ±115,300 JOBS WITHIN A THREE MILE RADIUS FROM THE PROPERTY ±357,500 JOBS WITHIN A FIVE MILE RADIUS FROM THE PROPERTY ±357,500 JOBS ±115,300 JOBS ±9,800 JOBS 1 MILE 3 MILES DEMOGRAPHICS RADIUS FROM PROPERTY 1 MILE 3 MILE 5 MILE Population: 2022 Projection 27, , , Estimate 25, , , Census 21, , ,393 Growth % 8.39% 8.11% Growth % 12.53% 10.85% 2017 Population Hispanic Origin 10,979 83, , Population by Race: White 18, , ,408 Black 2,634 14,869 36,674 Am. Indian & Alaskan 1,821 10,286 23,434 Asian 1,118 8,030 16,031 Hawaiian & Pacific Island ,334 Other 889 5,807 13,975 U.S. Armed Forces: Households: 2022 Projection 10,806 78, , Estimate 9,906 72, , Census 8,413 64, ,299 Growth % 8.36% 8.17% Growth % 12.53% 11.27% Owner Occupied 3,923 31,719 80,988 Renter Occupied 5,983 40,561 95, Avg Household Income $46,518 $58,849 $55, Med Household Income $33,062 $40,143 $37, Households by Household Inc: <$25,000 3,853 23,855 63,079 $25,000 - $50,000 2,640 18,923 46,471 $50,000 - $75,000 1,706 12,355 27,377 $75,000 - $100, ,364 15,358 $100,000 - $125, ,943 9,002 $125,000 - $150, ,936 4,290 $150,000 - $200, ,213 4,874 $200, ,690 5,687 N 24 NORTHMARQ MULTIFAMILY 5 MILES URBAN 188 APARTMENTS 25

14 Washington High School MIDTOWN / UPTOWN PHOENIX Bethany Square Shopping Center Retail Retail Retail Washington Park Phoenix Baptist Hospital Christown Spectrum Mall Palo Verde Golf North Central Phonenix Neighborhood Dynamic neighborhood with trendy shops and restaurants. Alhambra Little League Cordova Middle School Little Canyon Park Simpson School Local Restaurants and Shops Grand Canyon University Grand Canyon University Expansion Plan Santa Fe Phoenix Alhambra High School Pane Industrial District Cielito Park Granada Elementary School Plaza Del Sol Shopping Airhaven Industrial Westwood Primary Horizon Village Shopping Center Phx Christian High School Osborn Middle School Melrose Marketplace Melrose District Brophy/Xavier College Prep Central High School Steele Indian School Park VA Medical Center URBAN 188 Clarendon Elementary Encanto Elementary Retail Arizona Collegiate High School UPS Customer Metro Tech High School Phoenix Community College N26 NORTHMARQ MULTIFAMILY Encanto Park URBAN 188 APARTMENTS & Golf Course St. Joseph s Hospital 27

15 AREA HIGHLIGHTS Midtown Phoenix URBAN 188 IS WITHIN EASY ACCESS TO: Light Rail Stations 7th Avenue > > Sky Harbor International Airport one of the top ten busiest airports in the nation with more than 100,000 passengers daily, over 31,000 employees & a daily economic impact of $90 million. > > Metrocenter Mall million square foot super-regional shopping mall in northwest Phoenix with over 100 retailers and restaurants. Currently being transformed by initiating a new Planned Urband Development (PUD) Zoning Overlay to accommodate a 2,700,000 square feet mixed-use environment, including office, medical and residential units. New 148,000 square feet Walmart Supercenter opened July th Avenue > > Desert Ridge Marketplace - premier shopping and entertainment destination with over 110 retailers and restaurants. > > Arrowhead Towne Center - anchored by Macy s, Sears, Dillard s, JCPenney, and AMC Theatres and is home to 132 tenants. Metro Light Rail Line > > Paradise Valley Mall - anchored by Macy s, Sears, Dillard s, JCPenney, and Costco and is home to 160 tenants. > > Biltmore Fashion Park - over 600,000 square feet of luxury outdoor retail and dining. Camelback Road > > HonorHealth Deer Valley Medical Center - Magnet status 204-bed full service hospital. > > HonorHealth John C. Lincoln Medical Center - Magnet status 266-bed full service hospital. > > Banner Thunderbird Medical Center bed hospital ranked 6th best in Phoenix metro area. > > Abrazo Scottsdale Campus bed acute care hospital. > > Phoenix Children s Hospital bed hospital currently undergoing a $60M expansion project which will accommodate up to 100,000 patients per year (existing capacity is 22,000 patients). N 28 NORTHMARQ MULTIFAMILY URBAN 188 APARTMENTS 29

16 URBAN 188 IS WITHIN EASY ACCESS TO: > > Thunderbird School of Global Management - top ranked global business school with over 1,000 students enrolled (recently acquired by ASU). > > Midwestern University - top physician assistant program (#20) in the country with 3,000 students enrolled. > > Grand Canyon University - rapidly expanding educational institution with over 74,000 students enrolled. > > Arizona State University Main Campus largest in the nation with over 100,000 students enrolled. > > SkySong - a 1.2 million square foot mixed-use project with more than 1,000 employees and 50 companies. > > New $1.4 billion Phoenix Metro Light Rail connecting Tempe to Mesa, Downtown & Greater Phoenix. Light Rail Station 19th Avenue Metro Light Rail Line 17th Avenue > > Downtown Phoenix - #1 employment center with over $3 billion in new development planned or underway. Camelback Road > > Camelback Corridor/Biltmore area - 12,400+ employees and over 100 companies (20th Street to 32nd Street along Camelback Road). > > South Scottsdale features dozens of restaurants and bars, the 1.6-million square foot Scottsdale Fashion Square Mall. > > Mill Avenue District (Downtown Tempe) unique urban environment with countless commercial, retail & office developments and over 30,000 workers. > > Tempe Town Lake & Beach Park over 6 million square feet in new development planned, under construction or recently completed including Marina Heights, a $600M, 20-acre, mixed-use development that will include five office buildings leased by State Farm, retail amenities and a 10-acre plaza to be constructed over the next four years. 30 NORTHMARQ MULTIFAMILY URBAN 188 APARTMENTS N 31

17 OVERVIEW & FINANCIAL ANALYSIS RENT COMPARABLES FINANCIAL ANALYSIS SALES COMPARABLES

18 RENT COMPARABLES NO. PROPERTY YEAR BUILT UNITS UNIT SIZE AVG. SF PHYSICAL OCCUPANCY RENT/ UNIT RENT/ UNIT MANAGED BY PROPERTY RUBS GAS ELECTRIC WATER GATED ACCESS DOG PARK CLUB HOUSE GYM SPORT COURT COVERED PARKING KIDS PLAYGROUND S Urban W Camelback Rd. Phoenix, AZ % $749 $1.49 $748 $1.49 Shelton-Cook Urban W Camelback Rd. Phoenix, AZ $90/$95 (Including $45 For Internet) Master Master Master 1 Pinewood Village 4802 N. 15th Ave. Phoenix, AZ % $830 $1.32 $796 $1.27 Chamberlin Pinewood Village 4802 N. 15th Ave. Phoenix, AZ $75/$100 Master Master Master 2 Colter Park 909 W. Colter St % $853 $1.29 $844 $1.27 Living Well Homes Colter Park 909 W. Colter St. Allocation Individual Individual Individual 3 Aura at Midtown N. 5th Ave % $952 $1.08 $912 $1.04 Shelton-Cook Aura at Midtown N. 5th Ave. Included Individual Individual Master Turney 801 W. Turney Ave % $970 $1.49 $970 $1.49 Chamberlin 801 Turney 801 W. Turney Ave. $25/$35 Individual Individual Master 5 Bella Solano 5656 N. 17th Ave. Phoenix, AZ % $759 $1.27 $759 $1.27 AMC Bella Solano 5656 N. 17th Ave. Phoenix, AZ Allocation Master Individual/ Master Master 6 Revival on 7th Street 6060 N. 7th St. Phoenix, AZ % $748 $1.70 $748 $1.70 Chamberlin Revival on 7th Street 6060 N. 7th St. Phoenix, AZ Included Master Master Master 7 El Cortez 3130 N 7th Ave % $676 $1.66 $676 $1.66 Trinity El Cortez 3130 N 7th Ave. Included None Master Master Average % $827 $1.36 $815 $ NORTHMARQ MULTIFAMILY URBAN 188 APARTMENTS 35

19 RENT COMPARABLES DETAILS Urban W Camelback Rd. Phoenix, AZ WALK 68 Pinewood Village 4802 N. 15th Ave. Phoenix, AZ WALK Turney 801 W. Turney Ave. WALK 73 Bella Solano 5656 N. 17th Ave. Phoenix, AZ WALK 74 OWNER: Preferred Property Mgmt MANAGED BY: Shelton-Cook TRANSIT 56 S OWNER: Mac 6 MANAGED BY: Chamberlin TRANSIT 55 1 OWNER: Newcastle Realty Services MANAGED BY: Chamberlin TRANSIT 52 4 OWNER: Andrew L. Ellis MANAGED BY: AMC TRANSIT 56 5 UNIT TYPE UNITS SF UNIT TYPE UNITS SF UNIT TYPE UNITS SF UNIT TYPE UNITS SF Studio $695 $1.48 $678 $1.44 1BD/1BA $768 $1.45 $736 $1.39 1BD/1BA $900 $1.50 $900 $1.50 Studio $1,017 $0.95 $1,017 $0.95 1BD/1BA $810 $1.50 $793 $1.47 2BD/1BA $897 $1.23 $860 $1.18 2BD/1BA $1,050 $1.48 $1,050 $1.48 1BD/1.5BA $500 $0.73 $500 $0.73 1BD/1BA - Premium $870 $1.61 $853 $1.58 TOTAL/AVG $751 $1.20 $733 $1.17 TOTAL/AVG $785 $1.20 $778 $1.19 2BD/1.5BA $640 $1.04 $640 $1.04 2BD/1BA $950 $1.06 $933 $1.04 2BD/1.5BA $704 $1.03 $704 $1.03 TOTAL/AVG $749 $1.49 $688 $1.37 2BD/1.5BA $640 $1.04 $640 $1.04 Note: $200 premium for furniture rental. 2BD/1.5BA $700 $1.40 $500 $1.00 2BD/1.5BA $640 $1.04 $640 $1.04 TOTAL/AVG $606 $0.92 $599 $0.91 Colter Park 909 W. Colter St. WALK 66 Aura at Midtown N. 5th Ave. WALK 77 Revival on 7th Street 6060 N. 7th St. Phoenix, AZ WALK 71 El Cortez 3130 N 7th Ave. WALK 66 OWNER: Sheiner Group MANAGED BY: Living Well Homes UNIT TYPE UNITS SF TRANSIT 56 Studio $770 $1.67 $770 $1.67 1BD/1BA $845 $1.21 $828 $1.18 2BD/2BA $1,040 $1.08 $1,040 $1.08 TOTAL/AVG $847 $1.28 $837 $1.26 Note: $45-$100 premium for upgraded units. 2 OWNER: Capital Real Estate MANAGED BY: Shelton-Cook UNIT TYPE UNITS SF TRANSIT 56 1BD/1BA $875 $1.23 $839 $1.17 1BD/1BA $875 $1.18 $839 $1.13 2BD/1.5BA $975 $1.09 $934 $1.04 2BD/2BA $995 $0.99 $954 $0.94 2BD/2BA $995 $0.94 $954 $0.90 3BD/2BA $1,400 $1.14 $1,342 $1.10 TOTAL/AVG $934 $1.06 $896 $1.02 Note: $75-$225 premium for upgraded units. Upgrades include new cabinets, new appliances, ceiling fans, and new carpet. 3 OWNER: Mentor Properties MANAGED BY: Chamberlin UNIT TYPE UNITS SF 36 NORTHMARQ MULTIFAMILY URBAN 188 APARTMENTS TRANSIT 45 Studio $699 $1.86 $699 $1.86 1BD/1BA $799 $1.57 $799 $1.57 TOTAL/AVG $693 $1.57 $686 $ OWNER: FPA Multifamily MANAGED BY: Trinity Property UNIT TYPE UNITS SF TRANSIT 55 Studio $670 $1.65 $670 $1.65 Studio $838 $1.85 $838 $1.85 TOTAL/AVG $667 $1.63 $662 $

20 RENT COMPARABLES MAP 6 S 1 Urban W Camelback Rd. Phoenix, AZ Pinewood Village 4802 N. 15th Ave. Phoenix, AZ Colter Park 909 W. Colter St. S Aura at Midtown N. 5th Ave Turney 801 W. Turney Ave. 3 5 Bella Solano 5656 N. 17th Ave. Phoenix, AZ Revival on 7th Street 6060 N. 7th St. Phoenix, AZ N 7 El Cortez 3130 N 7th Ave. 38 NORTHMARQ MULTIFAMILY URBAN 188 APARTMENTS 39

21 PRO FORMA OPERATIONS PRO FORMA OPERATING INCOME Monthly Scheduled Gross Rent $140,900 Annual Scheduled Gross Rent $1,690,800 Physical Vacancy 4.00% -$67,632 Model Units* 1.07% -$18,092 Economic Vacancy 5.00% -$84,540 Net Rental Income $1,520,536 RUBS $199,526 Furniture Income (12 Units with $200 Premium) $28,800 Storage Units (35 Units at $50 Rent - 96% Occupied) $20,160 Laundry Income $10,892 Other Income (Late Fees, Pet Fees, Application Fees, Etc.) $74,475 Gross Operating Income $1,854,390 PRO FORMA OPERATING EXPENSES PER UNIT Property Taxes $273 $51,238 Insurance $175 $32,900 Maintenance & Repairs $350 $65,800 Turnover $200 $37,600 Contract Services $100 $18,800 Electricity $307 $57,677 Gas $94 $17,654 Sewer and Water $294 $55,233 Trash $33 $6,205 Payroll $1,000 $188,000 Management Fee 3.00%OF GOI $296 $55,632 Marketing $100 $18,800 Administrative Expenses $150 $28,200 Capital Reserve $300 $56,400 TOTAL OPERATING EXPENSES $690,139 Operating Cost Per Unit $3,671 Operating Cost Per Sq Ft $7.32 PRO FORMA OPERATING INCOME $1,164,251 UNIT TYPE UNITS SF NOTES RENTS Current asking rents. *MODEL UNITS Amount of rent forgone for a Studio and 1 BD/1BA model unit. PHYSICAL VACANCY Consistent with submarket performance. RUBS Based on $90 and $95 flat fees per unit type. LAUNDRY AND OTHER INCOME Increased 20% from T-12 income operations. PROPERTY TAXES 2017 Annual property taxes quoted from the Maricopa County Treasurer. INSURANCE Premium quoted per Garzella Group Multifamily Risk Advisors. UTILITIES Electricity and Sewer and Water estimated based upon similar properties. Gas and Trash increased 3% from adjusted T-12 operations. OPERATIONAL EXPENSES Based on industry standards of similar properties. MONTHLY RENT Studio $695 $75,060 1BD/1BA $810 $51,840 1BD/1BA - Premium $870 $13,050 2BD/1BA $950 $950 TOTAL/AVG $749 $140, NORTHMARQ MULTIFAMILY URBAN 188 APARTMENTS 41

22 SALES COMPARABLES NO. PROPERTY YEAR BUILT UNITS PRICE $/UNIT $/SF SALE DATE S 1 Urban W Camelback Rd. Phoenix, AZ Arcadia Walk 2606 N. 44th St. Phoenix, AZ On Market $16,750,000 $113,176 $ /13/ Mission Palms 6131 N 16th St. Phoenix, AZ Madison Grove 7045 N. 7th St. Phoenix, AZ $16,000,000 $128,000 $ /31/ $21,450,000 $125,439 $ /23/2018 S Arcadia Gardens 3101 N 32nd St. Phoenix, AZ $8,475,000 $111,513 $ /21/ Vertu 1212 E. Bethany Home Rd. Phoenix, AZ $19,575,000 $130,500 $ /17/ Arcos PHX 1637 E Missouri Ave. Phoenix, AZ $5,475,000 $105,288 $ /11/2017 Average $118,986 $ N 42 NORTHMARQ MULTIFAMILY URBAN 188 APARTMENTS 43

23 SALES COMPARABLES Buyer Richard Vann 4445 Eastgate Mall San Diego, CA Buyer Jason McCool 20 Sedgwick Dr. Cherry Hills Village, CO Seller Western Wealth Capital 197 Forester Street #201 North Vancouver, BC V7T 0A6 Seller Clear Sky Capital, Inc E Camelback Rd. Phoenix, AZ Sale Price $16,750,000 Price / Unit $113,175 Price / SF $ Sale Date 3/13/2018 Sale Price $16,000,000 Price / Unit $128,000 Price / SF $ Sale Date 1/31/2018 Submarket Central East Phoenix Submarket South Paradise Valley Location/Property B / B- Location/Property B+ / B- ARCADIA WALK Electric Metering Individual/Master MISSION PALMS Electric Metering Individual 2606 N. 44TH ST., PHOENIX, AZ Year Built N. 16TH ST., PHOENIX, AZ Year Built 1975 Building S.F. 94,704 Building S.F. 103,925 Total Units 148 Total Units 125 UNIT TYPE UNITS SF UNIT TYPE UNITS SF 1 BD / 1 BA $779 $1.27 STUDIO $793 $1.77 FINANCING 1 BD / 1 BA $815 $1.13 FINANCING 1 BD / 1 BA $846 $1.56 Lender RCC Real Estate 2 BD / 1.5 BA $855 $1.01 Lender Firstbank 1 BD / 1 BA $765 $ BD / 2 BA $1,005 $1.23 Loan Amount $14,350,000 2 BD / 2 BA $1,000 $ BD / 2 BA 26 1,013 $1,141 $1.13 Loan Amount $12,000,000 TOTAL/AVG $826 $1.29 Loan-to-Value 85% TOTAL/AVG $919 $1.11 Loan-to-Value 75% 44 NORTHMARQ MULTIFAMILY URBAN 188 APARTMENTS 45

24 SALES COMPARABLES Buyer Rincon Partners, LLC N Tatum Blvd. Phoenix, AZ Buyer Rincon Partners, LLC N Tatum Blvd. Phoenix, AZ Seller ESI Enterprises, Inc Canoga Ave. Woodland Hills, CA Seller Glasir Capital Partners 1017 N Central Ave. Phoenix, AZ Sale Price $21,450,000 Price / Unit $125,439 Price / SF $ Sale Date 1/23/2018 Sale Price $8,475,000 Price / Unit $111,513 Price / SF $ Sale Date 11/21/2017 Submarket North Central Phoenix Submarket East Camelback Location/Property B+ / B Location/Property C+ / B- MADISON GROVE Electric Metering Individual ARCADIA GARDENS Electric Metering Individual 7045 N. 7TH ST., PHOENIX, AZ Year Built N. 32ND ST., PHOENIX, AZ Year Built 1969 Building S.F. 98,640 Building S.F. 39,330 Total Units 171 Total Units 76 UNIT TYPE UNITS SF STUDIO $726 $1.61 FINANCING UNIT TYPE UNITS SF FINANCING 1 BD / 1 BA $858 $1.53 Lender Bellwether Enterprise Mortgage STUDIO $615 $1.59 Lender Holliday Fenoglio Fowler 1 BD / 1 BA $908 $ BD / 2 BA $1,359 $1.63 Loan Amount $16,579,000 1 BD / 1 BA $785 $ BD / 1 BA $930 $1.11 Loan Amount $6,173,000 TOTAL/AVG $893 $1.55 Loan-to-Value 77.29% TOTAL/AVG $745 $1.49 Loan-to-Value 72.84% 46 NORTHMARQ MULTIFAMILY URBAN 188 APARTMENTS 47

25 SALES COMPARABLES Buyer Baron Properties th St. Denver, CO Buyer Andrew Ellis 4404 The Strand Manhattan Beach, CA Seller Gelt Inc Reseda Blvd. Tarzana, CA Seller Charles Duff 1402 E Caroline Ln. Tempe, AZ Sale Price $19,575,000 Price / Unit $130,500 Price / SF $ Sale Date 10/17/2017 Sale Price $5,475,000 Price / Unit $105,288 Price / SF $ Sale Date 8/11/2017 Submarket Midtown Submarket Midtown Location/Property B / B Location/Property B / C VERTU Electric Metering Master ARCOS PHX Electric Metering Master 1212 E. BETHANY HOME RD., PHOENIX, AZ Year Built E. MISSOURI AVE., PHOENIX, AZ Year Built 1966 UNIT TYPE UNITS SF Building S.F. 129,150 Building S.F. 23,452 STUDIO $795 $2.27 Total Units 150 Total Units 52 STUDIO $845 $ BD / 1 BA $925 $ BD / 1 BA $850 $1.15 FINANCING FINANCING 2 BD / 2 BA 51 1,040 $970 $0.93 Lender American National Insurance Company UNIT TYPE UNITS SF Lender Sabal 2 BD / 2 BA 16 1,073 $1,075 $ BD / 2 BA 1 1,250 $1,460 $1.17 Loan Amount $15,880,000 STUDIO $749 $ BD / 1 BA $730 $1.30 Loan Amount $4,100,000 TOTAL/AVG $938 $1.09 Loan-to-Value 81.12% TOTAL/AVG $745 $1.68 Loan-to-Value 74.89% 48 NORTHMARQ MULTIFAMILY URBAN 188 APARTMENTS 49

26 LOCATION MAPS REGIONAL MAP NEIGHBORHOOD MAP BIRDS EYE VIEW PARCEL MAP

27 PHOENIX MSA REGIONAL MAP N N 52 NORTHMARQ MULTIFAMILY URBAN 188 APARTMENTS 53

28 BIRDS EYE AND PARCEL MAP Camelback Road A A N 54 NORTHMARQ MULTIFAMILY URBAN 188 APARTMENTS N 55

29 MULTIFAMILY, MANUFACTURED HOUSING & INVESTMENT SALES VALUATION NorthMarq Multifamily Trevor Koskovich PRESIDENT T C tkoskovich@northmarq.com Bill Hahn EXECUTIVE VICE PRESIDENT T C bhahn@northmarq.com Jesse Hudson VICE PRESIDENT T C jhudson@northmarq.com NorthMarq Capital James DuMars MANAGING DIRECTOR T C jdumars@northmarq.com Griffin Martin VICE PRESIDENT T C gmartin@northmarq.com Visit us online at northmarq.com Phoenix Office 3200 E. CAMELBACK ROAD, SUITE 253 PHOENIX, AZ