DEVELOPMENT ACRON LAKE CAROLYN RESIDENTIAL AG THE CAROLYN LUXURY MULTI-FAMILY PROPERTY DALLAS, TEXAS. IRR: 15.4% p.a. MULTIPLE: 1.

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1 DEVELOPMENT ACRON LAKE CAROLYN RESIDENTIAL AG THE CAROLYN LUXURY MULTI-FAMILY PROPERTY DALLAS, TEXAS USA INVESTMENT: Luxury multi family waterfront property; consists of four court- yards with 319 apartments within a mixed-use planned community ASSET CLASS: Class A, high-quality multi family residence LOCATION: Situated in Las Colinas Urban Center, on one of the last developable parcels in the heart of the Dallas-Fort Worth Metroplex PARTNER: American Residential Group, TDK Construction Company, Lincoln Property Company COMPLETION: End of 2018 IRR: 15.4% p.a. MULTIPLE: 1.5x ESTIMATED

2 Rendering of The Carolyn by HFF ACRON is pleased to present an outstanding investment opportunity for the development of The Carolyn, a luxury multi-family (MF) waterfront property situated in the heart of the Las Colinas Urban Center, Dallas-Fort Worth Metroplex, Texas. Facing Lake Carolyn, the four courtyards include 319 units of Class A, high-quality MF residences with best-in-class finishes coupled with a rich amenity package in a walkable urban setting. REASONS TO INVEST Short term investment period or long term income upon investor s direction High-Quality Class A Residences, Unique location, Las Colinas Market: booming business community, nestled in the heart of the DFW-Metroplex, steps from the DART and just minutes from the Airport DFW Growth Engine: job & population growth High entry barriers: one of the last developable parcels Completion guarantee Outstanding Partner, Strength of Development Team & Loan Guarantors: American Residential Group TDK Construction Company Lincoln Property Company ACRON USA Aligned interests through co-investment of ACRON and Investors Attractive Exit Options INVESTMENT SCHEDULE (PRELIMINARY) (rounded) USD SOURCES Total debt Investment 38,874,300 Total equity 21,550,000 Sponsors equity 1,000,000 Investor equity 20,550,000 TOTAL SOURCES 60,424,300 USES Construction costs Hard costs Hard costs 43,330,000 Hard costs contingency 1,500,000 Total hard costs 44,830,000 Soft costs Soft costs 6,169,300 Soft cost contingency 1,000,000 Total soft costs 7,169,300 Project carry costs Interest carry 420,000 Operating carry 370,000 Total project carry costs 790,000 Total construction costs 52,789,300 Land acquisition 4.6 acres 6,125,000 Investment costs 1,510,000 TOTAL USES 60,424,300 PROFIT Distribution of cash flow and sale proceeds 30,178,000 Investor equity 20,550,000 PROFIT 9,628,000 Internal rate of return (IRR) p.a. 15.4% Equity multiple 1.5x 2 ACRON LAKE CAROLYN RESIDENTIAL AG

3 LAS COLINAS Las Colinas, a 12,000-acre business and residential master-planned community positioned in the City of Irving. Strategically adjacent to the DFW International Airport, Las Colinas spans 18 square miles and is home to approximately 2,000 companies including 30 Fortune 500 firms. The Las Colinas submarket contains over 22 million SF of multi-tenant and single-tenant office space, approximately 10 million SF of industrial space, nearly 4 million SF of retail shopping, 4,300 luxury and business class hotel rooms and more than 100 restaurants. THE CAROLYN LAS COLINAS, DALLAS, TEXAS Asset class Residential property Year issued 2017 USD 21,550,000 Total equity (max.) (ACRON-Investors: 20,550,000 Sponsor: 1,000,000) Construction start September 2017 Completion End of 2018 Address Las Colinas, Dallas, Texas Units 319 Parking 550 parking spaces Secured bike room Special amenities Prime Waterfront Views, Dog Spa Land size Gross building area Net rentable area Efficiency ratio 4.60 acres / 200,319 sq ft 279,591 sq ft (inl. Corridors) 265,611 sq ft 95% (NRSF % from sq ft) NOI 2021 (95% Occupancy) USD 4,572,342 INVESTMENT HIGHLIGHTS Unique Location and Product The best remaining developable site on Lake Carolyn. A true Transit Oriented Development (TOD), only steps from the DART Orange Line station. Proximate to new-to-market and highlyanticipated entertainment/restaurant options at both Water Street and Irving Music Factory, an amenity base never before seen in Las Colinas. Four lake-front courtyards with amenities such as infinity pool, recreation areas, fireplace, dog park, and outdoor bar/seating areas. 10 ceilings throughout; conditioned corridors; 60% of units with water views. Economics* Profit: USD 9,628,000 Internal rate of return (IRR) p.a.: 15.4% Equity multiple: 1.5x Advantageous Construction Loan Terms Construction financing anticipated at 70% LTC, Libor +300 bps through long-standing relationship with Bank of Oklahoma. DFW Growth Engine DFW is projected to lead the nation in both job growth ( ~ 306,000) and population growth ( ~ 593,000) from (Moody s; Jan 2017). Exceptionally tight single-family market, with continually rising home values and abnormally low inventory of available homes in more than half of Dallas markets (<2 months, vs. 6 month inventory in a normal market). Las Colinas Market A 12,000 acre, master-planned development in the center of the Dallas/Fort Worth MSA, Las Colinas is highly sought-after by corporate tenants due to its central location, proximity to both airports, diverse amenity base and abundant residential options. *estimated ACRON LAKE CAROLYN RESIDENTIAL AG 3

4 10-YEAR ECONOMIC PROFORMA (IN USD) YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8 YEAR 9 YEAR 10 FOR THE YEARS ENDING May 2018 May 2019 May 2020 May 2021 May 2022 May 2023 May 2024 May 2025 May 2026 May 2027 POTENTIAL GROSS REVENUE GPR Growth Rate 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% Gross Potential Revenue 6,260,146 6,447,951 6,641,389 6,840,631 7,045,850 7,257,225 7,474,942 7,699,191 7,930,166 8,168,071 Gross Potential Revenue 6,260,146 6,447,951 6,641,389 6,840,631 7,045,850 7,257,225 7,474,942 7,699,191 7,930,166 8,168,071 Other Income Other Income Growth Rate 6.78% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% Other Income 0 104, , , , , , , , ,178 Total Other Income 0 104, , , , , , , , ,178 Gross Potential Rent (GPR) 6,260,146 6,552,879 7,021,906 7,246,960 7,464,368 7,688,300 7,918,948 8,156,517 8,401,212 8,653,249 Revenue Adjustments Vacancy Factor (% of PGI) 8.77% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% Economic Vacancy/ Collection Loss (6,260,146) (4,939,634) (615,629) (362,348) (373,218) (384,415) (395,947) (407,826) (420,061) (432,662) Total Revenue Adjustments (6,260,146) (4,939,634) (615,629) (362,348) (373,218) (384,415) (395,947) (407,826) (420,061) (432,662) Effective Gross Income (EGI) 8,400 1,638,446 6,431,477 6,909,812 7,116,350 7,329,085 7,548,201 7,773,891 8,006,352 8,245,786 LESS OPERATING EXPENSES Operating Expenses Growth Rate 2.67% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% Leasing & Advertising (12,760) (51,687) (65,085) (66,820) (68,156) (69,520) (70,910) (72,328) (73,775) (75,250) Administrative (12,760) (51,687) (65,085) (66,820) (68,156) (69,520) (70,910) (72,328) (73,775) (75,250) Utilities (23,925) (96,913) (122,033) (125,288) (127,793) (130,349) (132,956) (135,615) (138,328) (141,094) R&M (R&M general, turnover, grounds) (25,520) (103,373) (130,169) (133,640) (136,313) (139,039) (141,820) (144,656) (147,549) (150,500) Payroll (73,370) (297,198) (374,236) (384,215) (391,900) (399,738) (407,732) (415,887) (424,205) (432,689) Management Fees (2.75% of EGI) 0 (44,364) (176,173) (189,327) (195,007) (200,857) (206,883) (213,089) (219,482) (226,066) Property Tax 0 0 (638,254) (1,255,407) (1,569,818) (1,731,593) (1,783,148) (1,836,250) (1,890,944) (1,947,280) Insurance (13,823) (53,624) (65,085) (66,820) (68,156) (69,520) (70,910) (72,328) (73,775) (75,250) Replacement Reserves (10,368) (40,218) (48,169) (49,132) (50,115) (51,117) (52,140) (53,182) (54,246) (55,331) Total Operating Expenses (172,526) (739,064) (1,684,287) (2,337,469) (2,675,414) (2,861,252) (2,937,408) (3,015,664) (3,096,078) (3,178,711) Net Operating Income (NOI) (164,126) 899,382 4,747,190 4,572,342 4,440,936 4,467,833 4,610,793 4,758,227 4,910,274 5,067,075 4 ACRON LAKE CAROLYN RESIDENTIAL AG

5 NET CASH FLOW OVERVIEW CASH FLOW PROJECTIONS YEAR 1 YEAR 2 YEAR 3 YEAR 4 Months in period Date Dec. 31, 2017 Dec. 31, 2018 Dec. 31, 2019 May 31, 2020 Effective Gross Income (EGI) 0 262,846 5,018,021 2,797,455 Total Operating Expenses 0 519,158 1,188, ,863 Net-Operating Income (NOI) 0-256,311 3,829,165 1,909,592 Asset Management Fees 0-19, , ,382 Cash Flow before Debt Service 0-275,411 3,578,808 1,798,210 Debt Service 0-489,361-1,789, ,386 Working Capital Reserve 0 764,773 35,609 0 Cash Flow after Debt Service 0 0 1,824,837 1,028,824 Participation Sponsors ,242 51,441 Distribution to Investors 0 0 1,733, ,383 in % of initial Equity p.a. 0.0% 0.0% 8.4% 9.5% TRANSACTION PROJECTIONS Cap Rate 5.6% Multifamily NOI at Disposition (based on re-assessment) 4,002,688 Sale Proceeds 71,477,000 Repayment of Mortgage Debt -38,874,262 Costs of Sale (1,25%) -893,463 GROSS RESIDUAL 31,709,276 Participation Sponsors 4,241,912 NET RESIDUAL 27,467,363 EQUITY INVESTOR YEAR 1 YEAR 2 YEAR 3 YEAR 4 Dec. 31, 2017 Dec. 31, 2018 Dec. 31, 2019 May 31, 2020 Cash Flow Operations 0 0 1,733, ,383 Sale Proceeds ,467,363 TOTAL CASH DISBURSED TO EQUITY INVESTORS 0 0 1,733,595 28,444,746 in % of initial Equity 0.0% 0.0% 8.4% 138.4% TOTAL DISBURSEMENTS TO EQUITY INVESTOR 30,178,341 Cash Equity Partner IRR 15.4% Equity Multiple 1.5x ACRON LAKE CAROLYN RESIDENTIAL AG 5

6 Direct visibility to 140,000 VPD on 114 and Northwest Hwy Over 1M VPD within a 5 mile radius Over a quarter of a million people within a 5 mile radius 10-MILE RADIUS 5-MILE RADIUS Over 1 million people within the immediate trade area Office Daytime population of over 100,000 people within Las Colinas alone 6 ACRON LAKE CAROLYN RESIDENTIAL AG

7 DALLAS/FORT WORTH DFW AND ITS ECONOMY DFW strategic position in the geographic middle of the nation is convenient to North America s five largest business centers: New York City, Chicago, Los Angeles, Mexico City and Toronto. Located at the Lake Carolyn Parkway and N O Conner intersection, residents of The Carolyn enjoy easy access to the major freeway systems, SH-348 and SH-114, and are within ten minutes of three other main arteries (SH-183, I-635, I-35, and Loop 12), giving residents outstanding access to the entire region. Dallas Area Rapid Transit (DART) works to manage a convenient structure of buses and rails to 13 cities in and around the DFW metro. In June 2012, DART marked its 250 millionth light rail passenger mark, making it one of the nation s fastest growing public transportation systems. In August 2014, the DART expanded to DFW International Airport by way of the Orange Line, providing convenient access to the Center Business District. DFW International Airport is the fourth busiest airport in the world in terms of operations (takeoffs and landings), handling over 1,850 flights per day and 66 million passengers for the year ending October 2016 Texas and the Dallas/Fort Worth Metro remain national leaders in population and employment growth, continually beating the national unemployment rate. Population growth in the Dallas/Fort Worth region is expected to remain impressive well into the future far exceeding national population growth rates. From 2017 to 2021, DFW is projected to add 593,191 residents, the highest forecast total in the entire U.S. 1 The Metroplex is projected to generate 305,868 new jobs from 2017 through 2021, ranking first in the nation in job growth 1. The Dallas/Fort Worth MSA economy is one of the most diverse in the country with major players in key long-term growth industries including aerospace/defense, transportation, healthcare, financial services, high technology, distribution and trade. The long-term outlook suggests the health and expansion of the DFW economy will continue for years to come, as the metro is projected to rank first in the nation in absolute change in population growth, while also ranking first nationally in absolute change in job growth during the five year period ending Moody s Economy.com report as of January 2017 In essence, long-term, above-average population growth, coupled with strong demographics, has positioned the DFW Metroplex as one of the top regional economies in the U.S., not only today, but into the future. THE CAROLYN The Carolyn Tier 1 Comps Tier 2 Comps Other MF Under Construction MF Planned MF MF Zoned Land Office/Hotel/FS Resid. Mixed-Use/Other DFW s diversified economic base and proactive business climate continue to attract both people and businesses to the area. DFW is expected to remain on its long-term growth trends for the near and extended future, outpacing the state and the nation on most major measures. ACRON LAKE CAROLYN RESIDENTIAL AG 7

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10 Unit units average net total initial rents stabilized rents* sf sf base rent p.a. base rent p.a. One bedroom total (A) ,165 $3,486,947 $3,736,295 Two bedroom total (B) 104 1, ,726 $2,494,464 $2,672,841 Three bedroom total (C) 10 1,372 13,720 $278,736 $298,668 Total ,611 $6,260,146 $6,707,803 Assumes 3% annual market rent growth, and stabilization in Month 29, based on 15% pre-leasing and leasing 25 units per month. FLOOR PLAN - ONE-BEDROOM FLOOR PLAN - TWO-BEDROOM FLOOR PLAN - THREE-BEDROOM 10 ACRON LAKE CAROLYN RESIDENTIAL AG

11 PROJECT PARTNERS ACRON and American Residential Group (ARG), both located in Tulsa, Oklahoma, entered into a Joint Venture to develop, own and operate the 319 Class A luxury multifamily residential located on waterfront property in the heart of the Las Colinas Urban Center. ACRON (MANAGER) Founded in 1981, ACRON is headquartered in Zurich, Switzerland and in Tulsa, US, with subsidiaries in Luxembourg, Germany and Brazil. ACRON focuses on real estate investments for high net-worth clients intending to create sustained wealth and value for investors. Its assets are first-class properties and prime projects in the world s safe havens. ACRON s solid track record comprises 39 US properties including residential apartments, office and retail properties, senior living communities and hotels, e.g. award winning Solís Hotel Two Porsche Drive in Atlanta; Navy Pier Hotel Chicago in Illinois and Sheraton Fisherman s Wharf in San Francisco. The first US residential investment dates back to Texas has been a regional focus for ACRON ever since, as totally 11 out of 39 investment properties are located in this region. In its more than 35 year history ACRON has realized average returns of above 10% p.a. for its investors with real estate investments. AMERICAN RESIDENTIAL GROUP American Residential Group is a multifamily real estate company focused on the development, acquisition, and management of residential and mixed-use communities in the southern United States. Headquartered in Tulsa, Oklahoma, ARG has acquired, developed, managed, and subsequently sold more than 10,000 units in six states since its inception in 1997 (including Texas, Colorado, New Mexico, Georgia, Tennessee and Oklahoma). Jay Helm and Steve Ganzkow, former Oklahoma partners with Lincoln Property Company with more than 70 years of combined experience in the real estate industry, founded ARG with the mission of creating a world-class residential product to deliver to their communities. In the past 18 years, ARG has become the largest private apartment owner/ developer in downtown Tulsa. ARG is also actively seeking management, development, and acquisition opportunities across the Unities States. TDK CONSTRUCTION COMPANY TDK Construction Company (TDK) began in 1959 as a general contractor. In the last 10 years, TDK has grown to be one of the most active construction companies in Tennessee, developing over $300 million in multifamily assets. The company is one of the nation s top construction firms, receiving many accolades in its fifty year history, such as Best in Class by Multifamily Executive Magazine. The developer and general contractor is headquartered in Murfreesboro, TN and constructs properties throughout the Southeast, Southwest and Midwest. The company owns approximately 3,700 apartment units with another 1,500 in its development pipeline and has developed over 7,500 units since TDK primarily develops multifamily housing but also student housing, health care and assisted facilities, government facilities, office buildings and schools. LINCOLN PROPERTY COMPANY Lincoln Property Company (LPC) offers its clients and business partners unmatched service by drawing on a wealth of knowledge summoned from over 50 years of experience developing, constructing, and managing all types of apartment communities across the nation. Founded in 1965, LPC has become the 2nd largest apartment manager in the United States, with over 164,000 units under management. As a full-service real estate firm, LPC services and core competencies include, but are not limited to: property management, development/construction services, asset management/financial and deal sourcing, preacquisition due diligence, transition planning and execution, business intelligence software, custom marketing solution. With 4,900 employees within it ranks, LPC has developed 210,000 units (valued at over $12 billion) and has acquired $6 billion in multifamily projects; establishing themselves as one of the largest non-reit multifamily developers in the country. LPC has a deep understanding of real estate fundamentals that dictate exceptional returns on investment. As an operator with an apparent focus on Class A product, LPC separates themselves from the competition by utilizing their own proprietary software that allows performance benchmarking with property Business Intelligence. With the combination of those aforementioned capabilities bundled with LPC s national purchasing power and nationally recognized training initiatives, it is no wonder why LPC has established itself as a leading national multifamily operator. ACRON LAKE CAROLYN RESIDENTIAL AG 11

12 Disclaimer The information contained in this document serves only as non-binding information and should be viewed as a conceptual plan. No commitment can be made regarding actual implementation and set-up at the moment. This may depend on negotiation success, adequate demand for financing and regulatory requirements for marketing and distribution. ACRON AG reserves the right to change, amend or limit the information at any time and the right to abandon the set-up without assuming liability for losses, costs, or expenses of the recipient or other third parties. Any distribution or offering of this investment may be restricted in certain jurisdictions. Any persons in possession of this document and any persons being interested to make an investment are responsible to inform themselves of, and to observe, all applicable laws and regulations of any relevant jurisdictions. Any persons in possession of this document should not treat the content of this document as advice relating to legal, taxation or investment matters and are advised to consult their own professional advisers concerning the acquisition, holding or disposal of the investment referred to in this document. This document does not constitute an offer to anyone or solicitation by anyone in any country or jurisdiction (i) in which such an offer or solicitation is not authorized, (ii) in which the person making such an offer or solicitation is not qualified to do so or (iii) in which such an offer or solicitation would otherwise be unlawful. No action has been taken that would, or is intended to, permit a public offer of shares in any country or jurisdiction where any such action for that purpose is required. Accordingly, shares, if any, may not be offered or sold, directly or indirectly, and neither this document nor any other information, form of application, advertisement, or other document may be distributed or published, in any country or jurisdiction except under circumstances that will result in compliance with any applicable laws and regulations. ACRON AG is not making any representation or warranty to any prospective investor regarding the legality of an investment by such person under appropriate securities or similar laws. This document was produced by ACRON AG and/or its affiliates with the greatest of care and to the best of its knowledge and belief. This document is based on the information and data made available to ACRON AG. Some information has also been taken from accessible sources, which have not been separately verified by ACRON AG. ACRON AG provides no guarantee with regard to the content and completeness of this document and does not accept any liability for losses that might arise from making use of this information. This document may not be transmitted or reproduced either in part or in full without the prior written permission of ACRON AG and shall be treated strictly confidential. 2017; ACRON AG, Splügenstrasse 14, 8002 Zurich, Commercial Register of the Canton of Zurich, CHE ZURICH, SWITZERLAND Klaus W. Bender, Chairman phone: +41 (0) klaus.bender@acron.ch Peer Bender, CEO phone: +41 (0) mobile: +41 (0) peer.bender@acron.ch André N. Lagler, Managing Director, Head of Sales phone: +41 (0) mobile: +41 (0) andre.lagler@acron.ch DÜSSELDORF, GERMANY Kai Bender, Managing Director phone: +49 (0) kai.bender@acron.de TULSA, USA Greg W. Wilson, President phone: gw@acronusa.com LUXEMBOURG Ertan Isen, Managing Director phone: ertan.isen@acron.lu Document: October 24, 2017