KINGSTON APARTMENTS Kingston Street. Aurora, Colorado ERIK TOLL Associate Advisor

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1 KINGSTON APARTMENTS 1400 Kingston Street Aurora, Colorado ERIK TOLL Associate Advisor JULES B. HOCHMAN Principal

2 TABLE OF CONTENTS Area Overview Aerial Map Area Demographics Property Overview Property Details Financial Analysis Income & Expense Pricing Analysis Disclaimer

3 AREA OVERVIEW

4 AREA OVERVIEW 4 MONTVIEW ELEMENTARY SCHOOL NORTH MIDDLE SCHOOL E MONTVIEW BOULEVARD FITZSIMONS PARKWAY INTERSTATE 225 PARIS ELEMENTARY SCHOOL GENERAL S PARK KINGSTON APARTMENTS E COLFAX AVENUE KNETON ELEMENTARY SCHOOL E 13TH AVENUE NOME PARK PEORIA STREET VAUGHN ELEMENTARY SCHOOL POTOMAC STREET 73 WALK SCORE AURORA CENTRAL HIGH SCHOOL Most errands can be accomplished on foot. PEORIA ELEMENTARY SCHOOL

5 AREA DEMOGRAPHICS 5 POPULATION 1 mile 30,222 3 mile 171,291 5 mile 418,421 HOUSEHOLDS 1 mile 9,798 3 mile 63,558 5 mile 167,119 AVERAGE HH INCOME 1 mile $49,093 3 mile $68,160 5 mile $76,017

6 6 PROPERTY OVERVIEW

7 PROPERTY OVERVIEW 7 The Kingston Apartments are a desirable multifamily investment opportunity, ideally situated along the east Colfax corridor in the rapidly improving Aurora submarket. Fueled by the opening of the Stanley Marketplace and a bevy of local employment opportunities, Aurora has seen unprecedented growth in recent years, offering strong yields and outsized investor equity growth. Boasting the 4th highest 2017 rent growth in Colorado and having more than 1500 units and rampant non-residential redevelopment underway, this submarket is poised to continue offering attractive returns well into the future. Price: $2,050,000 Total Units: 18 Year Built: 1957 Building GSF: 13,275 SF Land SF: 12,589 SF Construction: Brick HVAC: Boiler Parking: Off-street Roof: Flat Property Highlights: Ideal unit mix consisting of 18 1-Bedroom units Fully updated in 2012, including new roof, boiler, wiring, plumbing, and landscaping All units boast recently updated flooring, bathrooms, and cabinetry Ample off-street parking Proximate to Nome Park, Anschutz Medical Campus, and Fitzsimmons Golf Course

8 PROPERTY OVERVIEW 8

9 FINANCIAL ANALYSIS

10 FINANCIAL ANALYSIS INCOME & EXPENSES 10 KINGSTON APARTMENTS AS-IS MARKET Unit Breakdown INCOME: INCOME: Unit Type Units Avg SF 1 Bed 1 Bath Avg Rent/Unit Rent/SF Total Avg Rent/Unit Rent/SF Total $846 $1.46 $ 182,647 $900 $1.55 $ 194,400 Total 18 10,458 SF Gross Rental Income: $ 182,647 Gross Rental Income: $ 194,400 Total Units: Property Description 18 Vacancy Allowance: Effective Rental Income: 5.56% $ (10,147) Vacancy Allowance: 5.00% $ 172,500 Effective Rental Income: $ 184,680 $ (9,720) Year Built: Building GSF: Land SF: ,275 SF 12,589 SF Misc Income 6.41% $ 614 $ 11,053 Misc Income 5.99% $ 614 $ 11,053 Laundry: 4.17% $ 400 $ 7,200 Laundry: 3.90% $ 400 $ 7,200 RUBS: 5.22% $ 500 $ 8,999 RUBS: 5.85% $ 600 $ 10,800 Construction: Brick Gross Operating Income: $ 199,752 Gross Operating Income: $ 213,733 HVAC: Parking Roof: Boiler Off-street Flat EXPENSES: % of ERI Per Unit Total EXPENSES: % of ERI Per Unit Total Repairs/Maint. 7.83% $ 750 $ 13,500 Repairs/Maint. 7.31% $ 750 $ 13,500 Gas/Electric 4.11% $ 394 $ 7,090 Gas/Electric 3.84% $ 394 $ 7,090 Water/Sewer 4.35% $ 417 $ 7,512 Water/Sewer 4.07% $ 417 $ 7,512 Trash 1.02% $ 98 $ 1,760 Trash 0.95% $ 98 $ 1,760 Management 10.00% $ 958 $ 17,250 Management 10.00% $ 1,026 $ 18,468 Insurance 4.87% $ 467 $ 8,400 Insurance 4.55% $ 467 $ 8,400 Taxes 2.82% $ 270 $ 4,863 Taxes 2.63% $ 270 $ 4,863 Total Expenses: 35% $ 60,375 Total Expenses: 33% $ 61,593 Expenses Per Unit: Expenses Per SF: $ 3,354 Expenses Per Unit: $ 3,422 $ 4.55 Expenses Per SF: $ 4.64 Net Operating Income: 139,377 Net Operating Income: 152,141

11 FINANCIAL ANALYSIS PRICING ANALYSIS 11 Estimated As-Is Price: $2,050,000 Market Price: $2,050,000 Price Per Unit: $113,889 Price Per SF: $ Loan Amount: $1,537,500 Down Payment: $512,500 Interest Rate: 4.25% Amortization Years: 30 Loan to Value: 75.00% Annual Debt Service: ($90,763) Principal Reduction: $25,920 Before Tax Cash Flow: $48,614 Debt Coverage Ratio: 1.54 Cash-on-Cash Return: 9.49% Total Return: 14.54% Cap Rate: 6.80% Price Per Unit: $113,889 Price Per SF: $ Loan Amount: $1,537,500 Down Payment: $512,500 Interest Rate: 4.25% Amortization Years: 30 Loan to Value: 75.00% Annual Debt Service: ($90,763) Principal Reduction: $25,920 Before Tax Cash Flow: $61,378 Debt Coverage Ratio: 1.68 Cash-on-Cash Return: 11.98% Total Return: 17.03% Cap Rate: 7.42%

12 DISCLAIMER This confidential Offering Memorandum, has been prepared by Pinnacle Real Estate Advisors, LLC ( Pinnacle REA ) for use by a limited number of qualified parties. This Offering Memorandum has been provided to you at your request based upon your assurances that you are a knowledgeable and sophisticated investor in commercial real estate projects and developments. Pinnacle REA recommends you, as a potential buyer/investor, should perform your own independent examination and inspection of the property described herein as 1400 Kingston Street located in Aurora, CO (the Property ) and of all of the information provided herein related to the Property. By accepting this Offering Memorandum, you acknowledge and agree that you shall rely solely upon your own examination and investigation of the Property and you shall not rely on any statements made in this Offering Memorandum or upon any other materials, statements or information provided by Pinnacle REA or its brokers. Pinnacle REA makes no guarantee, warranty or representation about the completeness or accuracy of the information set forth in this Offering Memorandum. You are responsible to independently verify its accuracy and completeness. Pinnacle REA has prepared the information concerning the Property based upon assumptions relating to the general economy, its knowledge of other similar properties in the market, and on other market assumptions including factors beyond the control of the Pinnacle REA and the Owner of the Property. Pinnacle Real Estate Advisors make no representation or warranty as to either the accuracy or completeness of the information contained herein, and the information set forth in this Offering Memorandum is not intended to be a promise or representation as to the future performance of the Property. Although the information contained herein is believed to be accurate, Pinnacle REA and the Property Owner disclaim any responsibility or liability for any inaccuracies. Further, Pinnacle REA and the Property Owner disclaim any and all liability for any express or implied representations and warranties contained in, or for any omissions from, the Offering Memorandum and for any other written or oral communication transmitted or made available to you. Pinnacle REA shall make available to you, as a qualified prospective investor, additional information concerning the Property and an opportunity to inspect the Property upon written request. This Offering Memorandum and the contents are intended to remain confidential except for such information which is in the public domain or is otherwise available to the public. By accepting this Offering Memorandum, you agree that you will hold and treat Offering Memorandum in the strictest confidence, that you will not photocopy or duplicate it, or distribute it. You agree you will not disclose this Offering Memorandum or its contents to any other person or entity, except to outside advisors retained by you and from whom you have obtained an agreement of confidentiality, without the prior written authorization of Pinnacle REA. You agree that you will use the information in this Offering Memorandum for the sole purpose of evaluating your interest in the Property. If you determine you have no interest in the property, kindly return the Offering Memorandum to Pinnacle REA at your earliest convenience.

13 KINGSTON APARTMENTS 1400 Kingston Street Aurora, Colorado ERIK TOLL Associate Advisor JULES B. HOCHMAN Principal