The Broadmoor. Luxury Rio Rancho Apartments INVESTMENT SUMMARY. Rio Rancho, Albuquerque MSA, NM

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1 The Broadmoor Luxury Rio Rancho Apartments INVESTMENT SUMMARY Luxury apartments in booming Rio Rancho On the corner of Picuris and Horno in the Broadmoor Corridor Rio Rancho, Albuquerque MSA, NM

2 g{x UÜÉtwÅÉÉÜ e É etçv{é Located in the heart of Rio Rancho s phenomenal education system, the Broadmoor luxury fourplexes are the first fourplexes designed with both the owner occupant and the investor in mind. Property offers: - Fastest growing small city in USA ( ) - Future growth forecast shows fastest growing county (2015 to 2035) - Access to Great Schools - Quality New construction - Excellent home builder - Owners unit - three bedroom two bathroom + Attached two car garage - variety of unit floorplans Apartment: Fourplex for $495,000 Unit Mix: 1 x 3/2 1,374 sf 1 x studio sf 1 x 1/1-709 sf 1 x 2/2-878 sf Total - 3,441 sf Measures of Investment Performance: Construction: HVAC Appliances: Utilities Finishes: Amenities: Site Amenities $123,750 per unit $143.85/sf 5.28% Cap Rate 16.10% after tax IRR 2 x6 wood frame with stucco veneer Roof mounted package units Black stove, dishwasher, & refrigerator Sub-metered for gas, electric, RUBS for water/ sewer Built in washer / dryer Built in bookshelves Built in media center 2 car attached garage

3 Site Plan (view from the west) The suggested site plan for this property is subject to final approval as a 17 lot fourplex subdivision. Horno Street Picuris Avenue NE Future Mid-Rise Apartment Development (zoning allows up to 6 stories) Future Commercial Development Broadmoor Boulevard N

4 Site Plan (view from the east) The suggested site plan for this property is subject to final approval as a 17 lot fourplex subdivision. Broadmoor Boulevard Future Mid-Rise Apartment Development (zoning allows up to 6 stories) Picuris Avenue NE Horno Street

5 Suggested Building Floorplans 1st Floor 2nd Floor

6 Illustrative interiors These photos are from another Rhett Ashley homes development - Tiburon Estate. Located on Albuquerque s Westside near Albuquerque s iconic Volcanoes, this 39 lot eight acre community offers homes with a 360 degree view.

7 Northern Boulevard Eagle Ridge Middle School Stapleton Elementary School Ice Arena 2.7 miles HP, CNM and UNM campuses Downtown Rio Rancho Broadmoor Boulevard Rio Rancho High School Public Library The subject property is located in the neighborhood with some of NM s best schools. Stapleton elementary school is #15 best elementary school in the state. Cleveland High School is #6 Rio Rancho High School #17 Eagle Ridge is #13 Source: High Resort Boulevard Rio Rancho sports complex Scale: = 500 Chamisa Hills Country Club & Golf Course

8 APOD Investor Loan 75% Loan to Value

9 APOD Owner Occupant Loan 90% Loan to Value

10 Financials - 5 year IRR for Investor at 75% LTV

11 Comparable Sales

12 Rio Rancho Apartment Demand Infographic = Apartment Unit 10 people = support one apartment unit Demand = Supply = Rio Rancho 2010 population / 10=8,752 87,521 units* -3,010 units GAP = 5,742 units The City of Rio Rancho has a multifamily housing shortage as it is in need of an additional 5,742 apartment units. Couple that with forecasted population growth of 141.8% between now and 2035 and the need for additional housing units is even more severe. Investors in the Broadmoor luxury apartments will be able to capitalize on this growth. * 2020 population is forecast to be 93,318 which equates to an additional 579 units of demand. 6.82% annual Historical growth rate!

13 Downtown Rio Rancho Sandoval County Medical Center Greater Rio Rancho metro Area 64,000 acres Sandoval County Judicial Center Rio Rancho was the fastest growing small city in America Rust / Presbyterian Medical Center Cottonwood Mall Albuquerque

14 Rio Rancho, NM RIO RANCHO AT A GLANCE Facts and Figures sq. miles of land - Incorporated in minutes from ABQ Sunport - 3rd largest city in NM - Median Age of Population: Top-notch educational system - est Average Household Income: $69,250 How does Rio Rancho Rank? New Mexico Ranks 1st for Job Growth US Dept of Commerce, 2015 New Mexico 8th for Tax-Friendly State Kiplinger s, 2015 New Mexico Ranked 6th Best for Clean Tech Activity Clean Edge, 2014 New Mexico Ranked Among Tax Friendly States Kiplinger s, October 2013 Rio Rancho Ranked 58th Best Place to Live Money Magazine, 2012 NM Ranked 10th for Sustainability Site Selection, July 2011 NM Ranked 10th Among States for Lowest Tax Burden Tax Foundation, July 2011 New Mexico Ranked Best Domestic Travel Destination Global Traveler, January 2011 Rio Rancho Ranked America s 51st Best Place to Live #51 CNN Money, 2010 Rio Rancho Ranked Among Best Small Cities Money, July 2010 Four New Mexico Colleges Ranked Among Forbes Best Forbes, August 2010 Rio Rancho Ranked 83rd for Best Places to Live and Launch CNN Money, 2008 Climate - More than 300 days of sunshine each year - ClimateAnnual precipitation: 9 inches - Summer temperatures: Winter temperatures: Representative Activity - $150 million Rust Medical Center - New Sandoval Regional Medical Center - HP technical/sales support center - New UNM West Campus - Central New Mexico Community College - New 171,000 SF Lowe s store - Central Business District development - New $105 million high school - New City Main Library - Indoor Aquatic Recreation Center Source: Springer5.com

15 Albuquerque, in MSA the news: Never a boom or bust town, Albuquerque is steadily pulling itself out of the economic downturn with increasing employment in most sectors, with a particular focus on the innovation square concept at Broadway and Central (where Microsoft has just announced a new facility). Ideally situated between Los Angeles and Dallas, Phoenix and Denver, and known for its quality of living, Albuquerque is increasing its walkable/bikeable and mass transit infrastructure to continue to recruit future employment. #1 place where home prices are likely to rise 9th best mid-sized city of the Future Foreign Direct Investment magazine 03/2015 6th best city to travel to for food snobs Travel+Leisure 03/2015 America s best city for Global Trade for Skilled Workforce Global Trade magazine 11/2014 3rd best city for rent growth All Property Management as reported in ABQ Journal 10/2013 6th best city in US for connecting workers to jobs using Public Transportation Brookings Institute July 2012 On of the 10 best park systems in the nation Trust for Public Land rd most fittest city Men s Fitness Magazine rd best city to make movies Moviemaker.com Top 25 best places to Retire CNNMoney.com 15th best city in Bloomberg s Business Week (best cities) Bloomberg s Business Week 2011 #17th best bike friendly city Bicycling Magazine 2010 Top Ten for Being a Healthy Community Outside Magazine #6 August 2009 One of the Best Cities in the Nation Kiplinger Magazine #2 July 2009 Top 10 places to Live U.S. News & World Report June 2009 AAA rates Albuquerque 2nd in vacation affordability American Automobile Association June 2008 Hundreds of films have been filmed in NM, and over a dozen TV shows and movies are in the works in Forbes Ranks Albuquerque #8 in Best Cities for Jobs Forbes, October 2007 UNM Schools Ranked Among Best Hispanic Business- September 2007 Albuquerque Named 25th Among America's Hottest Job Markets Washington Business Journal Bizjournal September 2007 Albuquerque Named Among the 50 Best Adventure Towns National Geographic Magazine, September 2007 New Mexico Ranked Fifth Nationally for Manufacturing Momentum Business Facilities, June 2007 New Mexico Ranked Fifth Nationally for Manufacturing Momentum Business Facilities, June 2007 Albuquerque Ranked #9 Among Cities for Most Educated Workforce Business Facilities- June 2007 New Mexico Ranked #7 for Pro-Business Climate (#1 in the Southwest) Business Facilities, June 2007 Albuquerque Ranked #2 Arts Destination AmericanStyle Magazine, June 2007 Albuquerque Named Among the Top 20 Metros for Nanotech Wilson Center's Project on Emerging Nanotechnologies, May 2007 Albuquerque Named one of the Top 20 Midsize Cities for Doing Business Inc.com, April 2007 Albuquerque Fittest City in the Nation Men's Fitness, March 2007 Albuquerque One of America's 50 Hottest Cities, Expansion Management, February 2007 Albuquerque Named a Top 10 City for Movie Making, MovieMaker Magazine, Winter 2007 Albuquerque Ranked 3rd Smartest City to Live, Kiplinger s Personal Finance, May 2006 Albuquerque One of the Top Metros in U.S. Overall for Public Schools- Expansion Management, May 2006 Bizjournals Survey Ranks Albuquerque 18th for Jobs, BizJournals, November 2006 Albuquerque Best in Nation for Business and Careers Forbes, May 2006 Forbes Magazine Ranks Albuquerque as 5th Best Metro Overall and Lowest Cost City for Doing Business- Forbes, May 2005

16 The Development Team About the Developer Rhett Waterman, owner Rhett Ashley Homes, comes from a well known development family - his father is known for being a major building mover, and his wife s family has three generations of building some of Albuquerque's nicest apartments, office and industrial buildings. Rhett has over 25 years of building single family homes, multifamily residences and renovating office, industrial buildings. About the Architect RBA Architecture, PC has been designing some of New Mexico's signature buildings since 1981 and has designed numerous award winning buildings and a wide range of building types including Commercial, Office, Manufacturing, Churches, Shopping Centers, Hospitality including Hotels with extensive experience in Multi-Family and high end custom residential throughout New Mexico. Many of these projects have been successfully completed with this Development Team. About the Listing Broker As a fourth generation New Mexican and commercial real estate broker, Todd has over 27 years of experience in the sales of multifamily investment properties. During that time he has listed and/or sold over 11,000 units in 450 different communities.

17 HOLD my Fourplex - Reservation Agreement for Broadmoor Fourplexes Potential Buyer hereby requests a reservation for the right to purchase the following proposed Improved Lot, as shown on a copy of the preliminary plat below, together with the Residential Improvements described on Exhibit A. Buyer Name: Buyer Seller Name: MVS Development LLC Seller 1700 Louisiana NE Suite 210, Albuquerque, NM Seller s Broker: Todd Clarke CCIM, NM Apartment Advisors Inc. (505) 440-TODD tclarke@nmapartment.com Seller s Broker NMREC License #13711 Buyer s Broker: License # Buyer s Broker Fourplex Property Address:, Rio Rancho, NM 871 Property Property Lot: Lot Broadmoor Subdivision Legal Description Purchase Price: $.00 The Proposed Purchase Price Is Subject To Change At Seller's Sole Discretion. Proposed Purchase Price Title Company Kathy Becker, Fidelity National Title (505) kathy.becker@fnf.com Escrow Agent Refundable Deposit: $4,010 made payable to Fidelity National Title. Potential Buyer's check must accompany this Reservation before consideration by the Seller of the offer for a reservation. If Seller accepts this Reservation, receipt of the Deposit is hereby acknowledged by Seller and Seller agrees to deliver the same to Escrow Agent. The Deposit shall be held in a non-interest-bearing account at a federally insured national banking association opened and maintained by the Escrow Agent. Refundable Deposit RESERVED RESERVED RESERVED

18 HOLD my Fourplex - Reservation Agreement for Broadmoor Fourplexes It is the desire of both parties that the Potential Buyer be permitted to reserve a particular Lot and to make a fully refundable and escrowed deposit under the following terms and conditions, THIS LOT RESERVATION (this "Reservation") between the above mentioned Buyer and Seller is an indication of interest on the Buyer s behalf in acquiring the above mentioned fourplex from the Seller subject to the following : SELLERS COMMITMENTS: 1. The Seller will reserve the above described fourplex investment for the Buyer. 2. Seller, Sellers Broker and Buyers Broker, will work with the Buyer in executing a purchase and sale agreement. 3. Seller will provide Buyer regular updates on the progress of said property. 4. Seller: a) Owns land in Rio Rancho Estates, Sandoval County, New Mexico, that will be replatted into 17 lots ("Lot(s)"); b) Proposes to construct four-plexes on the Lots ("Residential Improvements"); and c) Proposes to offer for sale the Lots with the Residential Improvements to be constructed ("Improved Lot(s)"), after the replat is finalized. BUYER S COMMITMENTS: 1. Potential Buyer acknowledges that: a) Potential Buyer shall not rely on any representation relating to the Lots or Residential Improvements, except those that may in the future be contained in the Purchase Agreement. Prior to execution of a Purchase Agreement, development, planning or marketing information related to the Lots and Residential Improvements from the Seller or the Seller's Broker may be communicated in a verbal or written form and will not be deemed final, guaranteed or binding on Seller. b) Potential Buyer has received an executed copy of this Reservation. c) Any referenced notices to be given to Potential Buyer may be delivered to any agent representing the Potential Buyer and shall be considered delivered if received by said agent. d) This Reservation is not assignable by Potential Buyer. e) Seller has the discretion of accepting a reservation. Receipt of this Reservation by Seller or Seller's Broker does not by itself constitute an acceptance of this Reservation by the Seller. Only the mutual signatures of Seller and Potential Buyer on this Reservation shall constitute an accepted Reservation. 2. Financial Information: Potential Buyer shall provide any reasonable financial information Seller may request to show Potential Buyer s financial ability to complete the purchase of the Improved Lot. REFUND of DEPOSIT This Reservation shall immediately terminate and expire, and the Deposit shall be refunded to Potential Buyer within five (5) calendar days thereafter upon the happening of any of the following: a) Receipt by the Escrow Agent and Seller of a written notice of cancellation of this Reservation and request for a refund of the Deposit, signed by Potential Buyer, any time prior to the execution of the Purchase Agreement. b) Receipt by the Escrow Agent of a notification from Seller verifying that at least seven (7) days have elapsed since Potential Buyer was given notice of the opportunity to purchase the Improved Lot and Potential Buyer has not signed the Purchase Agreement to purchase the Improved Lot as set forth in paragraph 5 above. c) Notice is given by the Seller to Potential Buyer and Escrow Agent, exercisable by the Seller in its sole discretion, at any time prior to the execution of the Purchase Agreement that Seller is withdrawing the Lot for sale. d) Notice is given to the Escrow Agent that the final replat creating the Lots was not obtained by Seller within days after the execution of this Reservation. TERMINATION OF RESERVATION BY EXECUTION OF PURCHASE AGREEMENT This Reservation shall automatically terminate and be of no further force and effect upon the parties' execution of a Purchase Agreement. LIMITATION OF LIABILITY This instrument does not convey any legal or equitable title or interest in the Lot. The Potential Buyer has no liability until and unless Potential Buyer enters into a written Purchase Agreement to purchase the Improved Lot. Potential Buyer may, at any time prior to entering into a Purchase Agreement, terminate this Reservation and obtain a refund of the Deposit. Prior to Seller and Potential Buyer entering into a Purchase Agreement for the Improved Lot, Seller shall be under no obligation to go forward with the sale of the Improved Lot and may at any time prior to the execution of the Purchase Agreement, at its discretion, terminate this Reservation and return the Deposit to Potential Buyer.. THIS RESERVATION IS NOT A BINDING AGREEMENT FOR THE PURCHASE AND SALE OF PROPERTY NOR DOES IT CONSTITUTE AN OFFER TO SELL. OPPORTUNITY TO EXECUTE PURCHASE AGREEMENT When the Seller has obtained final approval of the replat creating the Broadmoor Subdivision, Seller shall provide to Potential Buyer the opportunity to purchase the Improved Lot at a purchase price ("Final Purchase Price") to be determined by Seller, and notice the Potential Buyer that they have seven (7) days in which to execute and deliver back to the Seller or the Seller's Broker a purchase agreement (the Purchase Agreement ) executed by Potential Buyer. If Potential Buyer elects to

19 HOLD my Fourplex - Reservation Agreement for Broadmoor Fourplexes purchase the Improved Lot, the Deposit shall be applied as partial earnest money under the Purchase Agreement and will be applied to the Final Purchase Price. At the time of executing the Purchase Agreement, an additional amount will be required from the Potential Buyer to be deposited as earnest money with the Escrow Agent, which shall total one percent (1%) of the Final Purchase Price. The Final Purchase Price for the Improved Lot contained in the Purchase Agreement may differ from the Proposed Purchase Price set forth in paragraph 1. If the Potential Buyer is obtaining third party financing for the purchase of the Improved Lot, the due diligence period shall be forty-five (45) days after the acceptance of the Purchase Agreement by Seller with closing not later than five (5) days after substantial completion of the Residential Improvements by Seller. IN WITNESS WHEREOF, the parties have executed this Reservation effective as of the date it is last executed by Seller and Potential Buyer. Buyer Seller Name: Name: MVS DEVELOPMENT LLC Phone#: Phone#: AUTHORITY OF SIGNERS: If the potential Buyer is a corporation, partnership, trust, estate, limited liability company or other entity the person executing this Reservation on its behalf warrants his or her authority to do so and to bind the Potential buyer BROKER DUTIES; DISCLOSURE: Before the time a broker generates or presents any written document that has the potential to become an express written agreement, the broker shall disclose in writing to their prospective customer or client, and obtain a written acknowledgement from their prospective customer or client, showing the delivery of the disclosure of the following broker duties: Prior to the time a broker generates or presents to their prospective customer or client any written document that has the potential to become an express written agreement, the broker shall disclose in writing to that customer or client the list of broker duties set forth in Part that are owed by brokers to their customers, clients, other parties to the transaction, and/or other brokers. The broker shall obtain from their prospective customer or client written acknowledgement that the broker has made such disclosure. Brokers owe the following duties to their customers and clients A. Honesty and reasonable care as set forth in the provisions of this section; and ethical and professional conduct B. Compliance with local, state, and federal fair housing and anti-discrimination laws, the New Mexico real estate license law and the real estate commission rules, the New Mexico uniform owner resident relations act, and other applicable local, state, and federal laws and regulations; C. Performance of any and all written agreements made with the customer or client; D. Assistance to the broker s customer or client in completing the transaction, unless otherwise agreed to in writing by the customer or client, including: Timely presentation of and response to all offers or counter-offers in a timely manner; and Active participation in assisting their customer or client assistance in complying with the terms and conditions of the contract and with the closing of the transaction; if the broker in the transaction is not providing the service, advice or assistance described in Paragraphs (1) and (2) of Subsection D of NMAC, the customer or client must agree in writing that the broker is not expected to provide such service, advice or assistance, and the broker shall disclose the existence of such agreement in writing to the other brokers involved in the transaction; E. Acknowledgement by the broker that there may be matters related to the transaction that are outside the associate broker's or qualifying broker's knowledge or expertise and that the associate broker or qualifying broker will suggest that the customer or client seek expert advice on these matters; F. Advice to clients and customers to consult with an attorney regarding the effectiveness, validity or consequences of any written document generated by the brokerage or presented to a prospective customer or client, and that has the potential to become an express written agreement. G. Prompt accounting for all money or property received by the broker; H. Written disclosure to their client or customer and to other brokers involved in the transaction of any potential conflict of interest that the broker has in the transaction including but not limited to: Any written brokerage relationship the broker has with any other parties to the transaction or; Any material interest or relationship of a business, personal, or family nature that the broker has in the transaction; Other brokerage relationship options available in New Mexico; I. Written disclosure of any adverse material facts actually known by the associate broker or qualifying broker about the property or the transaction, or about the financial ability of the parties to the transaction to complete the transaction; adverse material facts requiring disclosure do not include any information covered by federal fair housing laws or the New Mexico Human Rights Act; J. Maintenance of any confidential information learned in the course of any prior agency relationship unless the disclosure is with the former client's consent or is required by law; K. Written disclosure of brokerage relationship options available in New Mexico; L. Unless otherwise authorized in writing, an associate broker or qualifying broker shall not disclose to their customer or client during the transaction that their seller client or customer has previously indicated they will accept a sales price less than the asking or listed price of a property; that their buyer client or customer has previously indicated they will pay a price greater than the price submitted in a written offer; the motivation of their client or customer for selling or buying property; that their seller client or customer or their buyer client or customer will agree to financing terms other than those offered; or any other information requested in writing by the associate broker's or the qualifying broker's customer or client to remain confidential, unless disclosure is required by law.

20 Additional Information Property Tours: call listing agent for details Register online for additional documentation and property tour Marketing Advisors The owner and property are represented by Todd Clarke CCIM of NM Apartment Advisors Inc. NMAA has over a quarter century of experience of marketing apartments in the New Mexico area. Todd Clarke CEO NM Apartment Advisors Inc TODD tclarke@nmapartment.com