Case Study: Seasons at Turlock/Boise

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1 S easons at Turlock/Boise is a two-property/two-city portfolio of Assisted Living Memory Care projects in Turlock, California and Boise, Idaho. The acquisition of the Seasons portfolio was syndicated to TIC investors by Evergreen Realty Group on January 23, Starting in early 2009, the TIC investors stopped receiving monthly distributions. Soon after, Evergreen stopped making debt service payments and the property was posted for foreclosure. At that point, the equity value of the TIC investors was zero. Kodiak Senior Living Management Company, an affiliate composed of Kodiak Capital Advisors was hired on March 1, 2010 as asset manager for the Seasons portfolio. Kodiak immediately began negotiations with the existing lender, GE, to stop the foreclosure process and restructure the defaulted mortgage. Kodiak simultaneously co-invested and raised an additional $1.5MM of new equity to satisfy delinquent mortgage payments, legal fees and deferred maintenance. Kodiak, as Managing Member, then successfully rolled-up the existing TIC investors into a new LLC which entered into a modified loan extension through April The portfolio was stabilized within the next twelve (12) months and monthly distribution resumed January 1, 2011 and have continued through December, The Seven (7) year average cash on cash return for the portfolio is 10.42% on post foreclosure based on original equity. See attached schedule of cash flow from 2011 through Case Study: Seasons at Turlock/Boise

2 Put the power of Kodiak Capital behind your DST 1031 Exchange When you choose a property and asset management company you should first make sure they are experienced, knowledgeable and approach problem solving with a plan that is hands on and disciplined. Your asset and property management company will have a direct impact on the performance and return on your real estate investment. Kodiak specializes in asset and property management and with a proven record of high performance, integrity and commitment to its clients. The goal is to increase property performance and value for the client. ABOUT KODIAK CAPITAL Kodiak Capital Advisors, LLC ( KCA ) was founded by Denny Landers in KCA was established as a commercial real estate investment and management company specializing in real estate syndications and property asset management services. The Company will have an emphasis on 1031 Exchanges using fractional ownership in a Delaware Statutory Trust (DST) structure. The company will act as a Sponsor/Manager entity that will offer to Exchange a DST interest in real property. The Sponsor/Manager will secure non recourse financing as well as prepare a comprehensive Private Placement Memorandum detailing the property and DST Exchange. Prior to the formation of Kodiak Capital Advisors, the previous thirty-eight (38) years were spent syndicating and managing over $160 million of 1031 Exchange equity in Tenant In Common (TIC) co-ownership structures in over a million square feet of commercial properties comprising multi-tenant office buildings, retail, office/flex and single-tenant office/warehouse NNN properties; acquiring 5.3 million square feet of Class A/B multi tenant office buildings and 500 units of multi-family apartments located in seven (7) states and fourteen (14) different market places; and forming a management company to provide both property and asset management services to all separate ownership entities. During this thirty-eight (38) year period over seventy (70) properties were assembled for various closely related ownership groups. The management team of KCA has extensive experience with acquisition, financing/refinancing, due diligence and disposition services for both domestic US and foreign real estate investors. On their behalf, over $685 million was invested in the acquisition/ management of commercial and multi-family properties. The strength of Kodiak Capital Advisors lies within the management s lengthy and broad-based experience in all areas of real estate investing, property and asset management, 1031 Exchanges and Tenant In Common syndications. The Company will provide a full range of services designed to maximize the returns on commercial properties with long-term NNN leases and will be offered in a DST ownership structure. Country Club, Frisco, TX Lakewood Ranch, Bradenton, FL Uptown Center, Dallas, TX

3 Seasons at Turlock Boise Portfolio Consolidated Returns California and Idaho Seven (7) Year Results for Years 2011 Through * Occupancy 89.30% 92.20% 93.70% 93.60% 90.70% 92.10% 92.80% Revenues 7,250,831 7,445,264 7,565,983 7,792,242 7,718,595 8,277,751 8,752,788 Operating Expenses 4,795,126 5,198,182 5,481,489 5,547,126 5,770,873 6,128,715 6,419,991 Net Operating Income 2,455,705 2,247,082 2,084,494 2,245,116 1,947,722 2,149,036 2,342,797 Debt Service 1,453,220 1,450,220 1,453,220 1,125,445 1,048,594 1,048,594 1,010,391 Cash Flow 1,002, , ,274 1,119, ,128 1,100,442 1,332,406 Equity Invested 1,464,332 1,464,332 1,464,332 1,464,332 1,464,332 1,464,332 1,464,332 Cash on Cash 68.46% 54.42% 43.11% 76.46% 61.40% 75.15% 90.99% *Annualized

4 Overland Court SUMMARY OF SALIENT FACTS Property: Overland Court Senior Living Assisted Living / Memory Care Address: & West Smoke Ranch Drive, Boise, Idaho Size: 4.97 acres, or 216,628 square feet Shape: Irregular Zoning: R-2D (Combined Residential) Corner Influence: Corner Building: Assisted Living Size (Gross Square Feet): 48,397 Number of Stories: 1 Year Built: 1999 Exterior: Stucco, brick and vinyl siding Framing: Wood Quality: Good Condition: Good Licensed Capacity: 98 Assisted Living Beds Operating Capacity: 98 Assisted Living Beds Total Units: 82 Operating Units: 81 Building: Memory Care Size (Gross Square Feet): 18,801 Number of Stories: 1 Year Built: 2002 Exterior: Stucco, brick and vinyl siding Framing: Wood Quality: Good Condition: Good Licensed Capacity: 38 Memory Living Beds Operating Capacity: 38 Memory Living Beds Total Units: 35 Operating Units: 35 Regional Analysis: The subject property is located in Boise, Ada County, Idaho. Boise is the capital of and largest city in Idaho. It is the seat of Ada County, which is located in southwest Idaho. Boise is located along the Boise River and anchors the Boise City-Nampa Metropolitan Area, which is home to approximately 616,500 people and is the most populous metropolitan area in Idaho. It contains the state s three largest cities, Boise, Nampa and Meridian, and is the largest city between Salt Lake City, Utah, and Portland, Oregon. Boise State University is located southwest of the downtown area. Ada 26 OVERLAND COURT SENIOR MERIDIAN LIVING NAMPA Boise National 75 Forest BOISE 84 Morley Nelson Snake River Birds of Prey National Conservation Area Sawtooth National Forest County is bordered by Canyon County to the west, Gem and Boise counties to the north, Elmore County to the east and Owyhee County to the south. Transportation: The city has adequate transportation linkages to surrounding areas. Boise is served by Interstate 84, which connects Boise with Portland, Oregon to the northwest and Salt Lake City, Utah, to the southeast. Interstate 184 (locally known as The Connector ) is a nearly five-mile stretch of freeway connecting Interstate 84 with the downtown Boise area that begins approximately one mile northeast of the subject. State Highway 55 extends to the northeast, while State Route 16 provides access to the city of Emmett. Public transportation includes a series of bus lines operated by Valley Ride. Passenger airline transportation is provided by Boise Airport, located 4.6 miles east of the subject property * Occupancy 89.90% 85.30% 90.40% 92.30% 86.40% 87.80% 92.80% Revenues 3,569,717 3,687,973 3,887,360 3,975,161 3,962,373 4,358,922 4,851,889 Operating Expenses 2,797,466 2,996,071 3,204,671 3,236,715 3,348,732 3,591,348 3,847,417 Net Operating Income 772, , , , , ,574 1,004,472 Debt Service 479, , , , , , ,331 Cash Flow 292, , , , , , ,141 Equity Invested 483, , , , , , ,228 Cash on Cash 60.57% 43.94% 42.04% 76.45% 56.38% 88.23% % *Annualized Capital Improvements Sept TOTAL Land Improvements** 10, , , ,000 40,360 Building Improvements 9,081 63,458 18,066 18, ,507 52,427 69, ,121 Furniture 16, ,022 4, , ,295 Equipment 5,155 1,736 17,259 23,414 12,527 14,164 8,713 82,969 Computers 800 1, , , ,517 TOTAL 42,600 67,153 52,926 53, ,635 69, , ,262 **NOTE: Related to Exterior Landscaping, Irrigation, and Parking Lot Repairs

5 Paramount Court SUMMARY OF SALIENT FACTS Property: Paramount Court Senior Living Address: 3791 Crowell Road, Turlock, California Size: 3.76 acres, or 163,786 square feet Shape: Rectangular Zoning: R-L (Low Density Residential) Corner Influence: Corner Building: Assisted Living Size (Gross Square Feet): 55,955 Number of Stories: 1 Year Built: 2001 Exterior: Stucco and brick Framing: Wood Quality: Good Condition: Good Regional Analysis: The subject property is located in Turlock in Stanislaus County, California. Turlock is part of the Turlock Metropolitan Statistical Area. As of the 2010 census, the city had a population of 68,549 people, up from 55,810 at the 2000 census, making it the secondlargest city in the county following Modesto. Turlock covers a total area of 16.9 square miles, with a population density of 4,100 people per square mile. Transportation: The city has several transportation linkages to surrounding areas. State Route 99 provides access to Stockton to the northwest and Merced to the southeast. Interstate 5, located just southwest of Turlock, provides access to Tracy to the northwest and Bakersfield to the southwest. Other major roadways include state routes 4, 33, 108, 120 and TRACY 5 STOCKTON Henry W. Coe State Park 5 MODESTO PARAMOUNT COURT SENIOR LIVING TURLOCK MERCED San Luis National Wildlife Refuge Yosemite National Park 132 Turlock Lake State Recreation Area Licensed Capacity: 100 Residential Care for the Elderly (RCFE) beds Operating Capacity: 100 Residential Care for the Elderly (RCFE) beds Total Units: 81 Operating Units: * Occupancy 93.50% 95.60% 95.40% 94.20% 92.80% 94.20% 92.80% Revenues 3,681,114 3,757,291 3,678,623 3,817,081 3,756,222 3,918,659 3,910,899 Operating Expenses 1,997,660 2,202,111 2,276,818 2,310,411 2,422,141 2,537,367 2,572,574 Net Operating Income 1,683,453 1,555,180 1,401,806 1,506,670 1,334,082 1,381,292 1,338,325 Debt Service 973, , , , , , ,060 Cash Flow 709, , , , , , ,265 Equity Invested 981, , , , , , ,099 Cash on Cash 72.35% 59.27% 43.64% 76.47% 63.88% 68.69% 66.89% *Annualized Capital Improvements Sept TOTAL Land Improvements** 0 7, , ,846 Building Improvements 4,340 14,689 13,810 1,250 4,943 62, ,705 Furniture 16, , ,622 5,670 54,583 89,560 Equipment 0 5,882 21,774 2,893 21,787 15,374 2,208 69,918 Computers 4,776 10,892 6, , ,977 TOTAL 25,145 39,574 43,563 4,955 50,261 83,717 56, ,006 **NOTE: Related to Exterior Landscaping, Irrigation, and Parking Lot Repairs

6 Denny Landers Put the power of Kodiak Capital behind your DST 1031 Exchange Dallas Parkway. Suite 700. Dallas, TX Fax: KodiakCapitalAdvisors.com