LIHTC Advisors. Kingsway Apartments EXCLUSIVE OFFERING. 28 Units 116 Ohara Circle King, NC 27021

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1 LIHTC Advisors Kingsway Apartments 28 Units 116 Ohara Circle King, NC EXCLUSIVE OFFERING

2 LIHTC Advisors W. Explorer Drive Suite 200 Boise, ID CONFIDENTIALITY & DISCLAIMER Jordan Skyles (phone) (direct) (fax) John Nicolas (phone) (direct) (fax) The information contained in this package is confidential and is intended for review solely by the person receiving it directly from LIHTC Advisors. It should not be copied, distributed, nor made available to any person without the written consent from LIHTC Advisors. The information in this package has been obtained from sources we believe reliable. However, LIHTC Advisors has not verified and will not verify, any of the information contained herein and makes no guarantee, warranty, or representation about it. It is the sole responsibility of any interested parties to independently confirm the accuracy and completeness of the information provided herein. All prospective clients must conduct their own due diligence and take appropriate measures to verify all information. Jeff Irish (phone) (direct) (fax) In Cooperation with: John L. Ruffin, CCIM LIHTC ADVISORS KINGSWAY 28 UNITS

3 Kingsway Apartments 28 Units 116 Ohara Circle King, NC Table of Contents PROPERTY OVERVIEW Description Area Highlights Summary Photos Area Maps FINANCIAL ANALYSIS Executive Summary Income & Expenses Cash Flow Summary Unit Mix Income & Rent Limits Historical AMI, MAX Rent, & FMR COMPARABLE PROPERTIES Rent Comparables Map Rental & Occupancy Statistics Rent Comparable Details DEMOGRAPHIC ANALYSIS Demographic Analysis 3 LIHTC ADVISORS KINGSWAY 28 UNITS

4 Property Overview HIGHLIGHTS Existing LIHTC Property Placed in Service in 2000 Current Rents are Below Max Net Rents King is Located in the Piedmont Triad and is Less than an Hour from Greensboro and Winston-Salem Priced Well Below Replacement Cost 4 LIHTC ADVISORS KINGSWAY 28 UNITS

5 Property Description Kingsway Apartments is a 28-unit affordable housing community located in King, NC. The property is located within minutes to retail, schools, restaurants, and other area amenities. Kingsway was built and placed in service in 2000 under the Section 42 Low-Income Housing Tax Credit (LIHTC) program. There is an existing regulatory agreement in place which requires units to be rented to income qualifying residents earning no more than 50% HOME and 60% of Area Medium Income (AMI) limits, which are provided by the North Carolina Federal Tax Reform Allocation Committee. The property is out of its initial tax credit compliance period. Please see the Property Summary page and the Unit Mix Page for further details. A qualified purchaser can be a non-profit or for-profit entity that agrees to maintain the affordability restrictions. The property offers two and three bedroom apartment homes featuring full appliance package, central heat & air, on-site leasing office, and playground. COMMUNITY AMENITIES Playground On-Site Leasing Office UNIT AMENITIES Full Appliance Package Central Heat & Air 5 LIHTC ADVISORS KINGSWAY 28 UNITS

6 Area Highlights King is a city in Stokes and Forsyth counties, North Carolina, and has a population of 7,025, up 1.8% since King is part of the Piedmont Triad metropolitan area, located northwest of Winston-Salem. The Piedmont Triad (or simply the Triad) is a north-central region of the U.S. state of North Carolina that consists of the area within and surrounding the three major cities of Greensboro, Winston-Salem, and High Point. The Triad area is notable for large textile, tobacco, and furniture corporations. The Triad remains a national center for textile manufacturing, represented by corporations including Hanes based in Winston-Salem, and International Textile Group, based in Greensboro. Tobacco remains a prominent crop in the Triad s rural areas and many tobacco companies like Lorillard Tobacco Company of Greensboro, and Reynolds American, based in Winston-Salem, call the Piedmont Triad home. Numerous furniture manufacturers are also headquartered in the Triad area. ECONOMY Recent job growth in King is positive. Jobs have increased by 0.4% since March COST OF LIVING The cost of living in King is 1% lower than the state average and 6% lower than the rest of the country as of Q POPULATION The population in King is 7,025 people as of July 2016, up 1.8% since REAL ESTATE The median home cost in King is $144,400. Median rent is $659 a month. SOURCE: homefacts.com, areavibes.com NEIGHBORHOOD AMENITIES Walmart (1.1 miles) King Public Library (1.4 miles) Lowes Foods (1.5 miles) City of King Police Department (1.6 miles) Stokes Family YMCA (2.7 miles) LOCATION HIGHLIGHTS Population: 7,025 Job Growth in King is Positive Part of the Piedmont Triad metropolitan area STOKES COUNTY TOP EMPLOYERS Stokes County Board of Education Kobe Wieland Copper Products, LLC County of Stokes Stokes- Reynolds Memorial Hospital Autumn Corporation Walnut Cove Healthcare 6 LIHTC ADVISORS KINGSWAY 28 UNITS

7 Property Summary NAME & LOCATION Property Name Kingsway Apartments Property Address 116 Ohara Circle King, NC SECTION 42 LIHTC RESTRICTIONS Placed in Service 2000 End of Initial Compliance Period 12/31/2015 End of Extended Use Period 12/31/2030 SITE INFORMATION Assessor s Parcel Number Number of Units 28 Number of Buildings 8 (including office) Number of Stories 1 Rentable Square Feet 25,692 Year Built 2000 Lot Size 3.23 Acres Density 8.67 Units/ Acre Type of Ownership Fee Simple Landscaping Mature Trees, Shrubs & Grass Topography Relatively Flat UTILITIES Water City of King Electric Duke Power CONSTRUCTION Exterior Vinyl Siding Roof Composite Shingle # OF UNITS RENTABLE SF PLACED IN SERVICE LOT SIZE 28 25, acres 7 LIHTC ADVISORS KINGSWAY 28 UNITS

8 Aerial Map Kingsway 28 Units 116 Ohara Circle King, NC LIHTC ADVISORS KINGSWAY 28 UNITS

9 Local Map Kingsway A Walmart (1.1 miles) B Wendy s, McDonald s, Pizza Hut, Burger King, Taco Bell, Rite Aide, Food Lion (1.4 miles) C E C D E King Public Library (1.4 miles) Lowes Foods (1.5 miles) City of King Police Department (1.6 miles) F G F King Elementary School, King High School (2.6 miles) G Stokes Family YMCA (2.7 miles) D A B 9 LIHTC ADVISORS KINGSWAY 28 UNITS

10 Local Map KINGSWAY King High School LIHTC ADVISORS KINGSWAY 28 UNITS

11 Regional Map Winston-Salem, NC (16 miles) Greensboro, NC (44 miles) Durham, NC (95 miles) Raleigh, NC (118 miles) KING 11 LIHTC ADVISORS KINGSWAY 28 UNITS

12 Financial Analysis LIST PRICE PRICE/UNIT PRICE/SF PROFORMA NOI PROFORMA NOI/UNIT PROFORMA CAP RATE $1,000,000 $35,714 $38.92 $70,170 $2, % 12 LIHTC ADVISORS KINGSWAY 28 UNITS

13 Executive Summary PROPERTY INFORMATION Name Kingsway Apartments Address 116 Ohara Circle City, State, Zip King, NC County Stokes County Year Built 2000 Placed In Service 10/1/00 End of Initial Tax Credit Compliance Period Qualified Contract Eligible December 31, 2015 No Total Number of Units 28 Net Rentable Square Feet 25,692 SF FINANCIAL SUMMARY PRICING FIGURES - WITH PROPOSED NEW FINANCING LIST PRICE $1,000,000 Price per Unit $35,714 Price per SF $38.92 PROFORMA 10-Year All Cash IRR%* 8.06% PROFORMA 10-Year Leveraged Cash IRR%* 14.47% Closing Cost $10,000 Capital Expense $28,000 Total Acquisition Cost $1,038,000 * IRR Analysis assumes 1.00% in Closing Costs, $1,000 per unit in Capital Expense, 7.50% exit cap, with a 6.00% cost of sale. 13 LIHTC ADVISORS KINGSWAY 28 UNITS

14 Executive Summary FINANCING PROPOSED NEW FINANCING Program Conventional Loan to Value % 75.00% Interest Rate 4.50% Interest Only Period (Months) 0 Amortization Period (Years) 30 Total Acquisition Cost $1,038,000 Loan Amount $750,000 Loan 1.00% $7,500 Down Payment $295,500 Annual Debt Service - P&I $45,602 Year 1 PROFORMA Debt Coverage Ratio 1.54 VITAL DATA PROFORMA CAP Rate 7.02% NOI $70,170 Year 1 Debt Service $45,602 Net Cash Flow After Debt Service $24,568 Cash on Cash % 8.31% 14 LIHTC ADVISORS KINGSWAY 28 UNITS

15 Income & Expenses OPERATIONAL ANALYSIS PROFORMA PER UNIT INCOME Gross Potential Rent $196,874 $7,031 POTENTIAL RENTAL INCOME $196,874 $7,031 (1) Economic Loss Vacancy Loss 4.00% ($7,875) ($281) (2) Bad Debt 1.50% ($2,953) ($105) Concessions 0.25% ($492) ($18) Model/Office/Empl. - Non Revenue 0.00% $0 $0 Total Economic Loss 5.75% ($11,320) ($404) NET RENTAL INCOME $185,554 $6,627 Other Income Forfeited Security Deposits/Lease Termination $0 $0 Laundry and Vending Revenue $338 $12 Misc. Other Income $1,607 $57 Total Other Income $1,945 $69 EFFECTIVE GROSS INCOME $187,498 $6,696 EXPENSES FIXED OPERATIONAL EXPENSE Total Real Estate Property Taxes 4% $8,300 $296 (3) Total Property Insurance Expense 4% $6,677 $238 Total Property Utility Expense 17% $31,484 $1,124 TOTAL FIXED OPERATIONAL EXP 25% $46,462 $1,659 VARIABLE OPERATIONAL EXPENSE Total Maint. Contract Services 3% $5,600 $200 (4) Total Repairs & Maintenance 7% $14,000 $500 (4) Total Administrative Expenses 6% $10,687 $382 (5) Total Leasing & Marketing 0% $297 $11 Total Payroll and Salary Expenses 11% $20,633 $737 Property Management Fee 6.00% $11,250 $402 (6) TOTAL VARIABLE OPERATIONAL EXP 33% $62,467 $2,231 TOTAL FIXED & VARIABLE EXPENSES 58% $108,929 $3,890 Reserves & Replacements $8,400 $300 TOTAL OPERATING EXPENSES 63% $117,329 $4,190 NET OPERATING INCOME $70,170 $2, LIHTC ADVISORS KINGSWAY 28 UNITS

16 Comments to Income & Expenses NOTES TO PROFORMA (1) (2) (3) (4) (5) (6) Potential Rental Income: Analysis is based on the current asking rents increased by 2.5% and annualized. Vacancy: Analysis uses a 4% vacancy factor going forward. Real Estate Taxes: See notes below. Repairs & Maintenance and Contracts: Analysis assumes a reduction to reflect current market underwriting. Administrative: Proforma assumes that the cost of an audit will no longer be required after a sale. Property Management Fee: Analysis assumes a reduction to reflect current market underwriting. REAL ESTATE TAX ANALYSIS Parcel #: Proforma Land $114,700 $118,141 Improvements $630,100 $649,003 Total Market Value $744,800 $767,144 Exemptions $0 $0 Value after Exemptions $744,800 $767,144 Assessment Ratio % % Assessed Value $744,800 $767,144 Tax Rate 1.082% 1.082% Ad Valorem Taxes $8,059 $8,300 Sales Tax Credit $0 $0 Total Taxes Due $8,059 $8,300 Notes Per the County Assessor's office, properties are evaluated every four years and taxes are calculated by applying the tax rate to the value. A transfer will not trigger a reassessment. The property was just reassessed in Analysis assumes that real estate taxes will be based on the current tax expense for 2017, but increased by 3%. 16 LIHTC ADVISORS KINGSWAY 28 UNITS

17 Cash Flow PROPERTY CASH FLOW ANALYSIS - ASSUMPTIONS YEAR 1 OPERATIONS BASED ON Proforma Gross Potential Rent Growth NA 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% Other Income Growth NA 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% Loss to Lease 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Vacancy 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% Bad Debt 1.50% 1.50% 1.50% 1.50% 1.50% 1.50% 1.50% 1.50% 1.50% 1.50% Concessions 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% Property Taxes NA 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% Insurance NA 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% Utilities NA 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% Property Management Fee 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% Other Expenses NA 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% Replacement Reserves NA 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% CASH FLOW SUMMARY Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 INCOME Gross Potential Rent $196,874 $201,796 $206,841 $212,012 $217,312 $222,745 $228,313 $234,021 $239,872 $245,868 Gain (Loss) to Lease $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 POTENTIAL RENTAL INCOME $196,874 $201,796 $206,841 $212,012 $217,312 $222,745 $228,313 $234,021 $239,872 $245,868 Economic Operational Loss Vacancy Loss ($7,875) ($8,072) ($8,274) ($8,480) ($8,692) ($8,910) ($9,133) ($9,361) ($9,595) ($9,835) Bad Debt ($2,953) ($3,027) ($3,103) ($3,180) ($3,260) ($3,341) ($3,425) ($3,510) ($3,598) ($3,688) Concessions ($492) ($504) ($517) ($530) ($543) ($557) ($571) ($585) ($600) ($615) Model/Office/Empl. - Non Revenue $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Operational Loss ($11,320) ($11,603) ($11,893) ($12,191) ($12,495) ($12,808) ($13,128) ($13,456) ($13,793) ($14,137) NET RENTAL INCOME $185,554 $190,192 $194,947 $199,821 $204,816 $209,937 $215,185 $220,565 $226,079 $231,731 Total Other Income $1,945 $1,993 $2,043 $2,094 $2,147 $2,200 $2,255 $2,312 $2,370 $2,429 EFFECTIVE GROSS INCOME $187,498 $192,186 $196,991 $201,915 $206,963 $212,137 $217,441 $222,877 $228,449 $234,160 OPERATIONAL EXPENSES FIXED OPERATIONAL EXPENSE Total Real Estate Property Taxes $8,300 $8,550 $8,806 $9,070 $9,342 $9,623 $9,911 $10,209 $10,515 $10,830 Total Property Insurance Expense $6,677 $6,844 $7,015 $7,191 $7,370 $7,555 $7,744 $7,937 $8,136 $8,339 Total Property Utility Expense $31,484 $32,271 $33,078 $33,905 $34,752 $35,621 $36,512 $37,425 $38,360 $39,319 TOTAL FIXED OPERATIONAL EXP $46,462 $47,665 $48,899 $50,166 $51,465 $52,798 $54,167 $55,570 $57,011 $58,488 VARIABLE OPERATIONAL EXPENSE Total Maint. Contract Services $5,600 $5,740 $5,884 $6,031 $6,181 $6,336 $6,494 $6,657 $6,823 $6,994 Total Repairs & Maintenance $14,000 $14,350 $14,709 $15,076 $15,453 $15,840 $16,236 $16,642 $17,058 $17,484 Total Administrative Expenses $10,687 $10,954 $11,228 $11,509 $11,796 $12,091 $12,394 $12,703 $13,021 $13,346 Total Leasing & Marketing $297 $304 $312 $320 $328 $336 $344 $353 $362 $371 Total Payroll and Salary Expenses $20,633 $21,149 $21,678 $22,220 $22,775 $23,345 $23,928 $24,526 $25,140 $25,768 Property Management Fee $11,250 $11,531 $11,819 $12,115 $12,418 $12,728 $13,046 $13,373 $13,707 $14,050 TOTAL VARIABLE OPERATIONAL EXP $62,467 $64,028 $65,629 $67,270 $68,952 $70,675 $72,442 $74,253 $76,110 $78,012 TOTAL FIXED & VARIABLE EXPENSE $108,929 $111,693 $114,528 $117,436 $120,417 $123,474 $126,609 $129,824 $133,120 $136,501 Replacement Reserves $8,400 $8,400 $8,400 $8,400 $8,400 $8,400 $8,400 $8,400 $8,400 $8,400 TOTAL OPERATING EXPENSES $117,329 $120,093 $122,928 $125,836 $128,817 $131,874 $135,009 $138,224 $141,520 $144,901 PROPERTY NET OPERATING INCOME $70,170 $72,093 $74,062 $76,080 $78,146 $80,263 $82,432 $84,653 $86,928 $89,259 1ST MTG DEBT SERVICE EXPENSES First Mortgage Interest $33,502 $32,947 $32,365 $31,757 $31,121 $30,456 $29,760 $29,032 $28,271 $27,475 First Mortgage Principal $12,099 $12,655 $13,236 $13,844 $14,480 $15,146 $15,842 $16,569 $17,330 $18,127 TOTAL 1ST MTG DEBT SERVICE $45,602 $45,602 $45,602 $45,602 $45,602 $45,602 $45,602 $45,602 $45,602 $45,602 CASH FLOW AFTER DEBT SERVICE $24,568 $26,491 $28,460 $30,478 $32,545 $34,662 $36,830 $39,051 $41,327 $43,657 DEBT SERVICE COVERAGE RATIO INDICATED CAPITALIZATION RATE 7.02% 7.21% 7.41% 7.61% 7.81% 8.03% 8.24% 8.47% 8.69% 8.93% 17 LIHTC ADVISORS KINGSWAY 28 UNITS

18 Unit Mix UNIT TYPE SET-ASIDE # OF UNITS UNIT SIZE ASKING RENT RENT PER SF PROFORMA RENT PROFORMA RENT PER SF MAX TC RENT CURRENT UA MAX NET RENT 2 BD 1 BTH 50% HOME $502 $0.58 $515 $0.60 $708 $88 $620 2 BD 1 BTH 60% $577 $0.67 $591 $0.69 $850 $88 $762 2 BD UNIT TOTAL 20 17,180 $10,790 $11,060 $15,580 $13,820 2 BD UNIT AVG 859 $540 $0.63 $553 $0.64 $779 $691 3 BD 2 BTH 50% HOME 4 1,064 $627 $0.59 $643 $0.60 $819 $106 $713 3 BD 2 BTH 60% 4 1,064 $677 $0.64 $694 $0.65 $983 $106 $877 3 BD UNIT TOTAL 8 8,512 $5,216 $5,346 $7,208 $6,360 3 BD UNIT AVG 1,064 $652 $0.61 $668 $0.63 $901 $795 TOTAL 28 25,692 $16,006 $16,406 $22,788 $20,180 AVERAGE 918 $572 $0.62 $586 $0.64 $814 $721 AFFORDABILITY RESTRICTIONS LIHTC Regulatory Agreement: 100% of units at 60% AMI with restrictions running through December HOME LURA: At the time of the analysis, the HOME LURA was unavailable. Per the Rider to Declaration of Deed Restrictions related to the HOME Loan, 14 units must be rented at or below 50% AMI and 14 units at or below 60% AMI. The affordability term is 20 years and is estimated to run at least through LIHTC ADVISORS KINGSWAY 28 UNITS

19 Stokes County Effective Year: 2017 Area Median Income: $56,900 Kingway is a Section 42 LIHTC property which means that federal tax credits were given to help finance the property. The property currently is required to hold the maximum rent charged at or below a level considered appropriate for the households that have incomes at or below 50% and 60% of the local Area Median Income (AMI) for the county. Tax Credit Property Income Limits INCOME 50% 60% 1 Person $22,050 $26,460 2 Person $25,200 $30,240 3 Person $28,350 $34,020 4 Person $31,500 $37,800 5 Person $34,050 $40,860 6 Person $36,550 $43,860 7 Person $39,100 $46,920 Tax Credit Maximum Allowable Rents Set Aside Unit Type # of Units Max Rent Current UA Max Net Rent 50% HOME 2 BD 10 $708 $88 $620 60% 2 BD 10 $850 $88 $762 50% HOME 3 BD 4 $819 $106 $713 60% 3 BD 4 $983 $106 $877 Unit Breakdown By Unit Type 29% 71% $900 $800 $700 $600 $500 $400 $300 $200 $100 $0 Basic Market Rents to Net Max Tax Credit Rents $795 $691 $652 $540 2 BD 3 BD 2 BD 3 BD Asking Rent Net Max Rent 19 LIHTC ADVISORS KINGSWAY 28 UNITS

20 AMI Growth Rate Year AMI % Change 2012 $62, $59,500 (4.03%) 2014 $56,000 (5.88%) 2015 $56, % 2016 $58, % 2017 $56,900 (2.74%) 3 Yr Avg 0.57% 5 Yr Avg (1.64%) $63,000 $62,000 $61,000 $60,000 $59,000 $58,000 $57,000 $56,000 $55,000 $54,000 $53, *The high watermark year was 2012 at $62,000 Max Allowable LIHTC Rent Growth- 2BD/ 60% Year Rent % Change 2012 $ $ % 2014 $ % 2015 $ % 2016 $ % 2017 $ % 3 Yr Avg 0.00% 5 Yr Avg 0.00% $900 $800 $700 $600 $500 $400 $300 $200 $100 $ SOURCE: novoco.com 20 LIHTC ADVISORS KINGSWAY 28 UNITS

21 FMR Averages Year FMR Avg. % Change 2012 $ $ % 2014 $ % 2015 $839 (0.89%) 2016 $836 (0.36%) 2017 $ % 3 Yr Avg 1.96% 5 Yr Avg 4.31% $900 $880 $860 $840 $820 $800 $780 $760 $740 $ Fair Market Rents Year 2 BD 3 BD 2012 $618 $ $678 $ $693 $1, $687 $ $698 $ $753 $1,038 SOURCE: novoco.com 21 LIHTC ADVISORS KINGSWAY 28 UNITS

22 Rent Comparables KINGSWAY OCCUPANCY COMPS AVERAGE OCCUPANCY KINGSWAY RENT/SF COMPS AVERAGE RENT/SF 96% 94% $0.62 $ LIHTC ADVISORS KINGSWAY 28 UNITS

23 Rent Comparables Map B A C Kingsway Apts. B Kelleystone Apts. A Pilot View Townhomes C Country Squire Apts. 23 LIHTC ADVISORS KINGSWAY 28 UNITS

24 Occupancy & Rent per SF Occupancy- 94% Average 98% 96% 94% 92% 90% 88% 86% 84% 82% 80% * A C D Rent Per SF- $0.62 Average $0.70 $0.65 $0.60 $0.55 $0.50 $0.45 $0.40 * A C D Kingsway Apts. B Kelleystone Apts. A Pilot View Townhomes C Country Squire Apts. 24 LIHTC ADVISORS KINGSWAY 28 UNITS

25 Rent Comparables KINGSWAY 28 UNITS OCCUPANCY: 96% YEAR BUILT: 2000 Unit Type # of Units Rent SF Rent Per SF 2BD 1BTH- 50% HOME 10 $ $0.58 2BD 1BTH- 60% 10 $ $0.67 3BD 2BTH- 50% HOME 4 $627 1,064 $0.59 3BD 2BTH- 60% 4 $677 1,064 $0.64 TOTALS/AVG. 28 $ $ Ohara Circle King, NC A PILOT VIEW 78 UNITS OCCUPANCY: 93% YEAR BUILT: 1986 REHABBED: 2014 Unit Type # of Units Rent SF Rent Per SF 1BD 1BTH 26 $ $0.67 2BD 2BTH 52 $ $0.70 TOTALS/AVG. 78 $ $0.69 *Market Rate & LIHTC Property with 60% Units 600 Newsome Road King, NC Distance to Subject: 1.7 miles 25 LIHTC ADVISORS KINGSWAY 28 UNITS

26 Rent Comparables B KELLEYSTONE 40 UNITS OCCUPANCY: 97% YEAR BUILT: 1986 Unit Type # of Units Rent SF Rent Per SF 2BD 1BTH 40 $ $0.60 TOTALS/AVG. 40 $ $ Kelleystone Drive King, NC Distance to Subject: 1.4 miles C COUNTRY SQUIRE 24 UNITS OCCUPANCY: 92% YEAR BUILT: 1976 Unit Type # of Units Rent SF Rent Per SF 2BD 1BTH 24 $ $0.57 TOTALS/AVG. 24 $ $ Ingram Street King, NC Distance to Subject: 1.1 miles 26 LIHTC ADVISORS KINGSWAY 28 UNITS

27 Demographics KING MEDIAN HOME COST KING MEDIAN RENT KING UNEMPLOYMENT RATE $144,400 $ % (4/2017) KING JOB GROWTH 0.4% (since 3/2017) SOURCE: homefacts.com, areavibes.com 27 LIHTC ADVISORS KINGSWAY 28 UNITS

28 Demographic Analysis POPULATION 1 MILE 3 MILES 5 MILES 2017 Estimated Population 3,633 13,027 23,345 Population Growth (3.74%) (0.45%) (0.33%) HOUSEHOLDS 2017 Estimated Households 1,560 5,375 9,483 Household Growth (3.53%) (0.28%) (0.21%) INCOME 2017 Household Income: Average $56,927 $62,687 $60, Household Income: Median $43,869 $52,000 $48,849 HOUSEHOLD INCOME LEVELS BY POPULATION 3,000 2,500 2,000 1,500 1, Under $25,000 $25,000- $50,000 $50,000- $75,000 $75,000- $100,000 $100,000- $125,000 $125,000- $150,000 $150,000- $200,000 $200,000+ OWNER 79% RENTER 21% OCCUPIED 93% VACANT 7% SOURCE: CoStar 28 LIHTC ADVISORS KINGSWAY 28 UNITS

29 LIHTC Advisors