BUILD FOR RENT(BFR) 22 HOME SFR PORTFOLIO IN OASIS IN THE FOOTHILLS

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1 BUILD FOR RENT(BFR) 22 HOME SFR PORTFOLIO IN OASIS IN THE FOOTHILLS S 10TH ST PHOENIX AZ Je9 Cline Senior Vice President jeo.cline@svn.com Michael Finch Senior Vice President michael.pnch@svn.com SVN RealStar Advisors N. 90th St., Suite 203, Scottsdale, AZ OFFERING MEMORANDUM

2 PROPERTY INFORMATION 3 Property Summary Property Description Complete Highlights Additional Photos LOCATION INFORMATION 8 Regional Map Location Maps Aerial Map Site Plan FINANCIAL ANALYSIS 13 PDF with Header/Footer DEMOGRAPHICS 15 Demographics Report Demographics Map ADVISOR BIOS 18 Advisor Bio & Contact 1 Advisor Bio & Contact 2 Disclaimer SVN RealStar Advisors N. 90th St., Suite 203, Scottsdale, AZ OFFERING MEMORANDUM

3 FOR SALE BUILD FOR RENT(BFR) 22 HOME SFR PORTFOLIO IN OASIS IN THE FOOTHILLS BUILD FOR RENT(BFR) 22 HOME SFR PORTFOLIO IN OASIS IN THE FOOTHILLS S 10TH ST PHOENIX AZ PROPERTY INFORMATION 1 PROPERTY INFORMATION S 10TH ST PHOENIX AZ BUILD FOR RENT(BFR) 22 HOME SFR PORTFOLIO IN OASIS IN THE FOOTHILLS 1010 E LIBERTY LN PHOENIX, AZ SVN RealStar Advisors Page 3 All SVN OHces Independently Owned and Operated The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

4 Property Summary OFFERING SUMMARY Sale Price: $7,750,000 Number Of Units: 22 Cap Rate: 5.51% NOI: $426,642 Lot Size: 0.06 Acres Year Built: 2017 Building Size: 47,787 Zoning: Market: Submarket: Residential Phoenix Ahwatukee Foothills Price / SF: $ PROPERTY OVERVIEWVIEW These 22 Build For Rent Single Family Residential homes, Oasis in the Foothills, are located in the Ahwatukee Foothills submarket at the southern tip of greater Phoenix, quietly tucked behind South Mountain. This Build For Rent (BFR) investment opportunity consisting of 22 Build For Rent (BFR) Detached Single Family Residential Rental investment properties have already begun construction. Oasis in the Foothills is located in a highly sought ater residential neighborhood where residents live, work, and play in this thriving & tightly knit community, which in years past was rated as one of the best places to live by Money Magazine. The community is equipped with gated pool, has direct & gated access to the YMCA next door, walking distance to Sierra Grade School & the Keystone Montessori School, both of which are on Liberty Lane either directly east of property or across the street from property. Oasis in the Foothills is also walking distance to neighborhood park & grocery store. BUILD FOR RENT(BFR) 22 HOME SFR PORTFOLIO IN OASIS IN THE FOOTHILLS 1010 E LIBERTY LN, PHOENIX, AZ SVN RealStar Advisors Page 4

5 Property Description PROPERTY OVERVIEWVIEW Residents Pnd great appeal with the strong educational system located here, which is part of the Kyrene School District, which consistently excels as a top performer in the State. GreatSchools.org rankings for Oasis in the Foothills is an amazing 10/10/9 ranking, which is top rated in the country! Adding further value to the immediate area directly across from Oasis is a 63 acre to be developed high end luxury home subdivision that will Pll in the last remaining developable parcel in the immediate submarket for new home building, which will only add to home values in Oasis in the Foothills. These 22 quality new build homes for rental investment features an opportunity for Buyer to purchase homes at CertiPcate of Occupancy and place tenants prior to completion so the investment is immediately cash Qowing. LOCATION OVERVIEWVIEW Oasis in the Foothills is located 14 miles south of downtown Phoenix and less than 20 minutes from the Phoenix Sky Harbor International Airport. Oasis s site is easily accessible to Interstate 10, which quickly connects to U.S 60 & Loop 202 to the rest of the Valley. The nearby South Mountain Freeway has begun construction and will further enhance access to the Oasis in the Foothills community and the Valley at large. The Ahwatukee Foothills is distinctive from most communities in the greater Phoenix area with it s access to South Mountain, dramatic elevation changes, and scenic biking & hiking routes surrounded by the beautiful Sonoran Desert. BUILD FOR RENT(BFR) 22 HOME SFR PORTFOLIO IN OASIS IN THE FOOTHILLS 1010 E LIBERTY LN, PHOENIX, AZ SVN RealStar Advisors Page 5

6 Complete Highlights SALE HIGHLIGHTS Increase Your IRR and Yield with a New Build SFR Investment Portfolio Investment Opportunity with Little to No Capital Expenditures Strong Year 1 Stabilized Cap Rate of 5.51% with Zero Cap Ex ASuent Submarket with Best School Rating in State 22 Build For Rent (BFR) Detached Single Family Residential Rental Investment Portfolio Quick Access to Arterial Streets, Freeways, and Phoenix Metro Valley Experienced Regional Builder Provides Homes at CertiPcate of Occupancy (C.O.) Builders Warranty on Brand New Homes with Greatly Reduced Capital Expenditures & Reserves Additional Home Warranty Package on Big Ticket Items Giving Nearly 5 Years of Limited Cap EX BUILD FOR RENT(BFR) 22 HOME SFR PORTFOLIO IN OASIS IN THE FOOTHILLS 1010 E LIBERTY LN, PHOENIX, AZ SVN RealStar Advisors Page 6

7 Additional Photos BUILD FOR RENT(BFR) 22 HOME SFR PORTFOLIO IN OASIS IN THE FOOTHILLS 1010 E LIBERTY LN, PHOENIX, AZ SVN RealStar Advisors Page 7

8 FOR SALE BUILD FOR RENT(BFR) 22 HOME SFR PORTFOLIO IN OASIS IN THE FOOTHILLS BUILD FOR RENT(BFR) 22 HOME SFR PORTFOLIO IN OASIS IN THE FOOTHILLS S 10TH ST PHOENIX AZ LOCATION INFORMATION 2 LOCATION INFORMATION S 10TH ST PHOENIX AZ BUILD FOR RENT(BFR) 22 HOME SFR PORTFOLIO IN OASIS IN THE FOOTHILLS 1010 E LIBERTY LN PHOENIX, AZ SVN RealStar Advisors Page 8 All SVN OHces Independently Owned and Operated The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

9 Regional Map Build For Rent(BFR) 22 Home SFR Portfolio in Oasis in the Foothills BUILD FOR RENT(BFR) 22 HOME SFR PORTFOLIO IN OASIS IN THE FOOTHILLS 1010 E LIBERTY LN, PHOENIX, AZ SVN RealStar Advisors Page 9

10 Location Maps BUILD FOR RENT(BFR) 22 HOME SFR PORTFOLIO IN OASIS IN THE FOOTHILLS 1010 E LIBERTY LN, PHOENIX, AZ SVN RealStar Advisors Page 10

11 Aerial Map Build For Rent(BFR) 22 Home SFR Portfolio in Oasis in the Foothills BUILD FOR RENT(BFR) 22 HOME SFR PORTFOLIO IN OASIS IN THE FOOTHILLS 1010 E LIBERTY LN, PHOENIX, AZ SVN RealStar Advisors Page 11

12 Site Plan BUILD FOR RENT(BFR) 22 HOME SFR PORTFOLIO IN OASIS IN THE FOOTHILLS 1010 E LIBERTY LN, PHOENIX, AZ SVN RealStar Advisors Page 12

13 FOR SALE BUILD FOR RENT(BFR) 22 HOME SFR PORTFOLIO IN OASIS IN THE FOOTHILLS BUILD FOR RENT(BFR) 22 HOME SFR PORTFOLIO IN OASIS IN THE FOOTHILLS S 10TH ST PHOENIX AZ FINANCIAL ANALYSIS 3 FINANCIAL ANALYSIS S 10TH ST PHOENIX AZ BUILD FOR RENT(BFR) 22 HOME SFR PORTFOLIO IN OASIS IN THE FOOTHILLS 1010 E LIBERTY LN PHOENIX, AZ SVN RealStar Advisors Page 13 All SVN OHces Independently Owned and Operated The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

14 Investment Overview SFRhub BFR BROCHURE INVESTMENT OVERVIEW 22 BFR Oasis in the Foothills Operating Year: Year 2 Year 5 Year 7 INVESTMENT OVERVIEW: Stabilized Year: Year 1; T-12 Year 3; T-36 Year 5; T-60 a) Buy Price $7,750,000 b) Buy Price Per Unit $352,273 c) Cap Rate Stabilized Year 1/3/5 5.51% 6.09% 6.51% d) Cap Rate Adjusted with Cost Segregation Year 1/3/5 6.64% 7.22% 6.51% e) Gross Yield Year 1/3/5 7.77% 8.49% 9.01% f) Net Operating Income, Year 1/3/5 (N.O.I.) $426,642 $471,734 $504,280 g) Unleveraged Internal Rate of Return (I.R.R.) Year 1/3/5 Year Hold 8.04% 10.35% 11.18% h) Leveraged Internal Rate of Return (I.R.R.) Year 1/3/5 Year Hold 26.81% 34.51% 37.26% i) Leveraged Cash on Cash Return (ROI) Year 1/3/5 Year Hold 7.95% 9.89% 7.50% OPERATING PRO FORMA j) Gross Scheduled Income, Year 1/3/5 $602,116 $657,949 $698,018 k) Other Income (App. Fees, Pet Fees, Late Fees) $0 $0 $0 l) Average Lease Rate, (P.S.F.) Year 1/3/5 $1.05 $1.15 $1.22 m) Vacancy 0.0% 0.0% 0.0% n) Operating Expenses, Year 1/3/5 $175,474 $186,214 $193,737 o) Net Operating Income, (N.O.I.) Year 1/3/5 $426,642 $471,734 $504,280 p) Advanced Cost Segregation Benefit, Additional Annual Cash Flow $88,000 $88,000 $0 q) Adjusted Net Operating Income with Cost Segregation Benefit $514,642 $559,734 $504,280 DEBT OVERVIEW r) Debt Amount at 70% LTC $5,425,000 s) Annual Debt Service Payment (P&I) $329,856 t) Estimated Annual Market Valuation Appreciation (National) - Year 1/3/5 5.40% 5.40% 5.40% BUILD FOR RENT(BFR) 22 HOME SFR PORTFOLIO IN OASIS IN THE FOOTHILLS 1010 E LIBERTY LN, PHOENIX, AZ SVN RealStar Advisors Page 14

15 FOR SALE BUILD FOR RENT(BFR) 22 HOME SFR PORTFOLIO IN OASIS IN THE FOOTHILLS BUILD FOR RENT(BFR) 22 HOME SFR PORTFOLIO IN OASIS IN THE FOOTHILLS S 10TH ST PHOENIX AZ DEMOGRAPHICS 4 DEMOGRAPHICS S 10TH ST PHOENIX AZ BUILD FOR RENT(BFR) 22 HOME SFR PORTFOLIO IN OASIS IN THE FOOTHILLS 1010 E LIBERTY LN PHOENIX, AZ SVN RealStar Advisors Page 15 All SVN OHces Independently Owned and Operated The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

16 Demographics Report 1 MILE 3 MILES 5 MILES Total population 7,190 29,094 72,748 Median age Median age (male) Median age (female) Total households 2,598 10,289 25,666 Total persons per HH Average HH income $132,929 $136,313 $113,985 Average house value $501,017 $491,112 $459,311 * Demographic data derived from 2010 US Census BUILD FOR RENT(BFR) 22 HOME SFR PORTFOLIO IN OASIS IN THE FOOTHILLS 1010 E LIBERTY LN, PHOENIX, AZ SVN RealStar Advisors Page 16

17 Demographics Map POPULATION 1 MILE 3 MILES 5 MILES Total population 7,190 29,094 72,748 Median age Median age (male) Median age (Female) HOUSEHOLDS & INCOME 1 MILE 3 MILES 5 MILES Total households 2,598 10,289 25,666 # of persons per HH Average HH income $132,929 $136,313 $113,985 Average house value $501,017 $491,112 $459,311 * Demographic data derived from 2010 US Census BUILD FOR RENT(BFR) 22 HOME SFR PORTFOLIO IN OASIS IN THE FOOTHILLS 1010 E LIBERTY LN, PHOENIX, AZ SVN RealStar Advisors Page 17

18 FOR SALE BUILD FOR RENT(BFR) 22 HOME SFR PORTFOLIO IN OASIS IN THE FOOTHILLS BUILD FOR RENT(BFR) 22 HOME SFR PORTFOLIO IN OASIS IN THE FOOTHILLS S 10TH ST PHOENIX AZ ADVISOR BIOS 5 ADVISOR BIOS S 10TH ST PHOENIX AZ BUILD FOR RENT(BFR) 22 HOME SFR PORTFOLIO IN OASIS IN THE FOOTHILLS 1010 E LIBERTY LN PHOENIX, AZ SVN RealStar Advisors Page 18 All SVN OHces Independently Owned and Operated The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

19 Advisor Bio JEFF CLINE Senior Vice President N. 90th St., Suite 203 Scottsdale, AZ T C jeo.cline@svn.com AZ #SA PROFESSIONAL BACKGROUND Mr. Cline has worked with top industry professionals and has personal advanced knowledge and experience in small to very large-scale commercial real estate brokerage, asset management, acquisition, Gnancing, development and construction segments. As a principal, Mr. Cline has completed approximately $2+ billion of commercial real estate property development and construction in most segments including approximately 22,000 multifamily units. Mr. Cline s specigc experience includes commercial real estate leadership in general management, team building and managing, corporate and construction Gnancing, business development, asset management, property management, development management, marketing, disposition of new construction projects including multi-family, hotel, ohce, industrial and senior assisted living properties. JeF s top executive and mid-management level combined with front-line experience across most segments of commercial real estate in retail / management operations, design and general contracting, development, Gnancing, property management and real estate brokerage. Over 38+ years, JeF has established an expanding local and national network of industry leaders as partners, clients and associates. BUILD FOR RENT(BFR) 22 HOME SFR PORTFOLIO IN OASIS IN THE FOOTHILLS 1010 E LIBERTY LN, PHOENIX, AZ SVN RealStar Advisors Page 19

20 Advisor Bio MICHAEL FINCH Senior Vice President N. 90th St., Suite 203 Scottsdale, AZ T C michael.pnch@svn.com AZ #SA PROFESSIONAL BACKGROUND Michael Finch began his successful career over 10 years ago in Phoenix, Arizona. Mr. Finch was able to expand his expertise from commercial and sales and development. He has developed broad local and national relationships with the top ranked high density mid to large scale developers for Commercial Mixed Use & Multifamily Development. As markets shiied, Mr. Finch leveraged lender relationships formed in previous years, to plan and begin distressed real estate disposition. Michael was able to develop and grow these relationships to become an integral part of the acquisition and disposition team. Michael has developed and managed an extensive pipe line of lender owned assets, short sales, and portfolio note sales. Michael has continued to deliver value add deals for existing multifamily assets as well as several income producing segments to his growing client base. With an extensive national network, Mr. Finch has been successful and enjoys being an integral partner for client teams focused on large scale income producing portfolios which include existing multifamily, retail, ohce, medical & hospitality assets. BUILD FOR RENT(BFR) 22 HOME SFR PORTFOLIO IN OASIS IN THE FOOTHILLS 1010 E LIBERTY LN, PHOENIX, AZ SVN RealStar Advisors Page 20

21 Disclaimer The material contained in this OOering Brochure is furnished solely for the purpose of considering the purchase of the property within and is not to be used for any other purpose. This information should not, under any circumstances, be photocopied or disclosed to any third party without the written consent of the SVN Advisor or Property Owner, or used for any purpose whatsoever other than to evaluate the possible purchase of the Property. The only party authorized to represent the Owner in connection with the sale of the Property is the SVN Advisor listed in this proposal, and no other person is authorized by the Owner to provide any information or to make any representations other than contained in this OOering Brochure. If the person receiving these materials does not choose to pursue a purchase of the Property, this OOering Brochure must be returned to the SVN Advisor. Neither the SVN Advisor nor the Owner make any representation or warranty, express or implied, as to the accuracy or completeness of the information contained herein, and nothing contained herein is or shall be relied upon as a promise or representation as to the future representation of the Property. This OOering Brochure may include certain statements and estimates with respect to the Property. These Assumptions may or may not be proven to be correct, and there can be no assurance that such estimates will be achieved. Further, the SVN Advisor and the Owner disclaim any and all liability for representations or warranties, expressed or implied, contained in or omitted from this OOering Brochure, or any other written or oral communication transmitted or made available to the recipient. The recipient shall be entitled to rely solely on those representations and warranties that may be made to it in any Pnal, fully executed and delivered Real Estate Purchase Agreement between it and Owner. The information contained herein is subject to change without notice and the recipient of these materials shall not look to Owner or the SVN Advisor nor any of their orcers, employees, representatives, independent contractors or arliates, for the accuracy or completeness thereof. Recipients of this OOering Brochure are advised and encouraged to conduct their own comprehensive review and analysis of the Property. This OOering Brochure is a solicitation of interest only and is not an ooer to sell the Property. The Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest to purchase the Property and expressly reserves the right, at its sole discretion, to terminate negotiations with any entity, for any reason, at any time with or without notice. The Owner shall have no legal commitment or obligation to any entity reviewing the OOering Brochure or making an ooer to purchase the Property unless and until the Owner executes and delivers a signed Real Estate Purchase Agreement on terms acceptable to Owner, in Owner s sole discretion. By submitting an ooer, a prospective purchaser will be deemed to have acknowledged the foregoing and agreed to release the Owner and the SVN Advisor from any liability with respect thereto. To the extent Owner or any agent of Owner corresponds with any prospective purchaser, any prospective purchaser should not rely on any such correspondence or statements as binding Owner. Only a fully executed Real Estate Purchase Agreement shall bind the property and each prospective purchaser proceeds at its own risk. BUILD FOR RENT(BFR) 22 HOME SFR PORTFOLIO IN OASIS IN THE FOOTHILLS 1010 E LIBERTY LN, PHOENIX, AZ SVN RealStar Advisors Page 21