Property Details. 330 Units SORELLE APARTMENTS. 36% 2 BED/2 BATH 120 Units. 45% 1 BEDROOM 150 Units. 18% 2 BED/1 BATH 60 Units.

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1 37 property Property Details SORELLE APARTMENTS Community Address Calle Sombra, Moreno Valley, CA Buildings 33 Residential Buildings; 1 Leasing Ofce/Clubhouse Stories Two-Story Residential Buildings, Single Story Leasing Ofce/Clubhouse Year Built 1986 SITE DESCRIPTION Units 330 Total Net Rentable SF 283,320 Parcel Size Acres Density 20 DU/Acre UNIT TYPE UNITS UNIT SIZE 1 Bed/1 Bath Bed/1 Bath Bed/2 Bath Totals/Average: LOSS-TO-LEASE 12.6% 15.8% 14.5% 13.9% PARKING BREAKDOWN Covered Spaces Uncovered Spaces 322 Hicapped Spaces 9 TOTAL 657 Parking Ratio 2.03 Spaces : 1 Unit 36% 2 BED/2 BATH 120 Units 330 Units 45% 1 BEDROOM 150 Units 18% 2 BED/1 BATH 60 Units

2 Lighted Ceiling Fans Shaker Style Cabinets 17 Horizontal Blinds Quartz Countertops/Backsplash Pull-Down Kitchen Faucet Double Basin Kitchen Sink Example: Renovated Unit at a Comparable Property in Moreno Valley Additionally, we will have to incorporate a higher end renovation scope similar to or properties in immediate area capture additional rent premiums. Potential renovation concepts are highlighted here. SPotential Interior Upgrades:» Quartz Countertops/Backsplash» Shaker Style Cabinets» Pull-Down Kitchen Faucet/Rainfall Shower Heads» Double Basin Kitchen Sink» Horizontal Blinds» Lighted Ceiling Fans

3 THE OFFERING Institutional Property Advisors, as exclusive listing agent, is pleased to present to acquire Sorelle Apartments, a 330-unit multifamily community in Moreno Valley, California. Originally constructed in 1986, represents Originally constructed in Sorelle 1986, Apartments Sorelle Apartments a proven value add that is well suited for an represents a proven value-add that is Originally constructed in 1986, Sorelle Apartments interior renovation program that will reposition it as one that ofthat well suited an interior renovation program represents aforproven value-add market leaders. ownership has program completed will reposition itfor ascurrent one of market leaders. Current is well suited an interior renovation renovations on 98 units which achieve up to $180which rent ownership has completed renovations 98 units that will reposition it as one of on market leaders. premiums. Investors will have to capture will achieve higher rent premiums. We will have Current ownership has completed renovations on value by upgrading remaining unrenovated partially to capture value remaining 98 units which achieve upby toupgrading $180 rent premiums. upgraded apartment homes based on current renovation unrenovated partially apartment homes Investors willhave upgraded to capture scope. Additionally, re is an for investors to value byupgrading remaining unrenovated based on current renovation scope. Additionally, re incorporate quartz countertops, shaker style cabinets, upgraded based on is an partially for us to apartment incorporate homes quartz countertops, lighting/ plumbing fixture upgrades into renovation scope current renovation scope. Additionally, re is shaker style cabinets, lighting/ plumbing fixture to capture additional premiums. an for investors to incorporate quartz upgrades into renovation scope to capture additional countertops, shaker style cabinets, lighting/ premiums. The Inl Empire continues to experience impressive growth plumbing xture upgrades into renovation scope job creation. The region currently has more industrial to capture additional premiums. The continues to experience spaceinl under Empire construction than anywhere else in impressive United growth job The region currently States fromcreation. April 2017 to April 2018, has more local The Inlspace Empire continues experience impressive industrial construction than anywhere in employment baseunder increased by to 3.1% besting both else state growth job creation. The region currently has wideunited (2.1%) national (1.6%) over States from April 2017 to April 2018, this local more industrial space under construction than anywhere else in United States from April 2017 to April 2018, local employment base increased by 3.1% besting both state-wide (2.1%) 8 SORELLE APARTMENTS same period. This surge byin3.1% economic activity has employment base increased besting both stateintensified dem for housing in region as wide (2.1%) national (1.6%) over this national (1.6%) over this same period. evidenced by surge 7.7%in economic effective rent same period. activity has intensified This surge inthis economic activity annual has intensi ed growth infor for Moreno Valley submarket last by three dem housing region as evidenced dem housing inin region asover evidenced by years, while occupancies remained strong 7.7% annual effective rent growth in in Moreno 7.7% annual effective rent growth at 95.4%.submarket Having cemented its as a leader Valley over last three years, while Moreno Valley already submarket over status last three years,in last mile logistics in strong Inl Empire, with millions occupancies remained at 95.4%. Having already while occupancies remained strong at 95.4%. of square feet of additional office as industrial space cemented its status as a leader in last-mile logistics Having already cemented its status a leader in last-inin Inl development Moreno Valley is uniquely mile logistics in pipeline, Inl Empire, with millions Empire, with millions of square feetofof positioned to advantage ofspace future growth square feetoffice of take additional of ce industrial space in additional industrial in economic development in region. development is uniquely pipeline, Moreno pipeline, Valley is Moreno uniquely Valley positioned to take positioned takeeconomic advantage of future economic advantage oftofuture growth in region. growth in region.economic momentum in Moreno Given positive Valley, strong submarket fundamentals, proven value Given positive economic momentum in Moreno Given positive economic momentum in Moreno add, Sorelle Apartments offers investors an Valley, strong submarket fundamentals, proven valuevalley, strong submarket proven excellent tofundamentals, acquireoffers a large multifamily add, Sorelle Apartments us an excellent value-add Sorelle Apartments offers asset in one, of fastest growing submarkets in Sourn to acquire a large multifamily asset in one of investors an excellent to acquire a California. fastest growing submarkets in Sourn California. large multifamily asset in one of fastest growing submarkets in Sourn California.

4 INVESTMENT HIGHLIGHTS Proven Value-Add Opportunity Sorelle Apartments presents us with a proven value-add. We will have to complete current renovation plan capture increased monthly premiums on remaining partially upgraded unrenovated units. Additionally, re is an to incorporate a higher end renovation scope that includes quartz countertops, shaker style cabinets, lighting/ plumbing fixture upgrades, to capture additional premiums. 330 UNITS ACRES 283,320 NRSF Moreno Valley is a Leader in Last-Mile Logistics Moreno Valley is an attractive location for warehousing distribution facilities due to availability of large relatively affordable warehousing space, various economic incentive programs offered by City, its location in a foreign trade zone, its proximity to major freeways thoroughfares, railways, ports of Long Beach Los Angeles. Ongoing expansion plans, such as World Logistics Center, a multi-billion dollar project that will include 40.6 million square feet of space add $2.5 billion in annual economic activity, are expected to add thouss of local jobs over next 5-10 years reby furr enhancing dem for housing. Regional Accessibility The subject property s location in Moreno Valley provides close proximity to 215, 91, 60, 15, 10 freeways, three Metrolink lines, two international airports. Residents are within a minute drive of 1.95 million jobs in Inl Empire. 10 SORELLE APARTMENTS

5 11 executive summary Strong Inl Empire Submarket Fundamentals The Inl Empire is California s fastest growing economy. From April 2017 to April 2018, local employment base increased by 3.1% besting both state-wide (2.1%) national (1.6%) over this same period bringing unemployment rate to 4.1%. The Inl Empire continues to exp currently has more industrial space under construction than anywhere else in United States. This surge in economic activity has intensi ed dem for housing in region as evidenced by 7.7% annual effective rent growth in Moreno Valley submarket over last three years, while occupancies remained strong at 95.4%. Strong Local Dem Drivers Sorelle Apartments is located within close proximity to several prominent retail centers, expansive business parks, acclaimed healthcare centers, recreational amenities, a strong base of local employers that result in strong dem for housing in North Moreno Valley. According to Zillow, North Moreno Valley home values have increased 9.20 percent over past year Zillow predicts a 2.60 percent increase over coming year. Similarly, Axiometrics projects 4.80 percent rent growth in 2018 with 3.09 percent projected rent growth over next four years. Outsting Physical Plant Previous ownership has invested $3.2 million in recent upgrades to physical plant including enhancements to many of property systems improvements to property s resort-like amenities. Notable amenity upgrades include: two newly renovated swimming pools spas, a state-of--art fitness center with new machines, new resident lounge, new dog park, renovated clubhouse & leasing center.

6 49 financial summary SVALUATION FINANCIAL SUMMARY Property Description Property Property Address Number of Units 330 Net Rentable Area 283,320 SF Year Built 1986 Sorelle Apartments Calle Sombra City, State, Zip Moreno Valley, CA 92557

7 Outsting Physical Plant $3.2 Million in Capital Expenditures on Sorelle Apartments Prior To Our Purchase Much of se capital expenditures have focused on systems upgrades/enhancements asset preservation projects thus allowing us to focus on revenue generating upgrades going forward. Shown here are notable renovations completed at property prior to our ownership from 2016 to now. 12 SORELLE APARTMENTS Interiors» Plumbing» Electrical» HVAC» Appliances» Flooring» Water Heaters Exteriors» Leasing Office/Clubhouse Renovation» Model Furniture» Leasing Office Furniture» Monument Signage» Parking Lot Repaving» Roofing Work» Exterior Paint» Exterior Trim» New Exterior Lighting» Controlled Access System» New Dog Park» Upgraded Pool Furniture» Fitness Center Equipment Flooring Upgrades» Lscaping Upgrades» New Maintenance Golf Cart

8 13 THE OPPORTUNITY

9 Value-Add Opportunity Originally constructed in 1986, Sorelle Apartments represents a proven valueadd that is well suited for an interior renovation program that will reposition it as one of market leaders. Renovations on 98 units have already been completed are achieving higher rent premiums. We will have to capture value by upgrading remaining unrenovated partially upgraded apartment homes based on current renovation scope. Subject Property: Partially Upgraded Unit Subject Property: Most Recent Renovated Unit 16 SORELLE APARTMENTS

10 35 THE PROPERTY property

11 THE PROPERTY Sorelle Apartments is a 330-unit multifamily community located on a acre lot in Moreno Valley, California. The property consists of 283,200 net rentable area features three floorplans including bedroom/1 bathroom units measuring 750 square feet, 60 2-bedroom/1-bathroom units measuring 875 square feet bedroom/2-bathroom units measuring 986 square feet. Originally built in 1986, property has undergone various renovations since Unit interiors include vinyl or wood-inspired luxury plank ooring in kitchens living areas, carpeting in bedrooms, formica or granite-inspired resurfaced countertops, washer dryer hook-ups, black or stainless steel appliances (range, refrigerator, dishwasher, microwave), new lighting plumbing xtures, new base boards, repainted cabinetry with chrome hardware. Select units have fullsize washer dryers, replaces, /or lighted ceiling fans. The gated community offers an extensive amenity package including two newly renovated swimming pools spas, a newly upgraded tness center with cardio machines, a new resident lounge, a new dog park, clubhouse, leasing center, business center, two tennis courts, two on-site laundry facilities, a children s play area, covered parking. 36 SORELLE APARTMENTS

12 FINANCIAL SUMMARY 48 SORELLE APARTMENTS

13 14 SORELLE APARTMENTS

14 EXECUTIVE SORELLE APARTMENTS SUMMARY Property Description: Location: 330 Rental Homes Calle Sombra Moreno Valley, CA Price: $ 56,250,000 Financing (70%): $ 39,375,000 Down Payment (30%): $ 16,875,000 Gross Rent Multiplier (GRM): Cap Rate on Stabilized Proforma: Price Per Unit: Approximate Cost Per Rentable Sq Ft: 10.7 % 5.57 % $ 170,455 $ Unit Mix: BR / 1 BA (46 approx. 750 sq. ft BR / 1 BA (19 approx. 875 sq. ft BR / 2 BA (33 approx. 986 sq. ft. 330 Approximate Rentable Sq. Ft.: 283,320 Parcel Size (Acres): Units per Acre: 19.5 Year Built: 1986 Parking: 326 Covered Spaces 322 Uncovered Spaces 9 Hicapped Spaces 657 Total Spaces Community Features: Unit Features: Unit Features (Renovated): Two Newly Renovated Pools & Spas Renovated State of Art Fitness Center New Resident Lounge New Dog Park Renovated Clubhouse & Leasing Center Business Center Children s Playground Two Lighted Tennis Courts Two On Site Laundry Facilities Ample Parking (2.03 Spaces / Unit) Covered Parking Available (±50% of Spaces) Fully Equipped Kitchens Including Range, Refrigerator, Dishwasher, Microwave Full Size Washer Dryer Hook Ups Central Heating Air Conditioning Individual Water Heaters Private Patio or Balcony with Storage Walk In Closets in Two Bedroom Units Fireplace* Lighted Ceiling Fans* Wood Inspired Luxury Plank Flooring in Kitchens Living Areas Full Size Washers Dryers Plush Carpeting in Bedrooms Resurfaced Formica Countertops Stainless Steel Appliances New Base Boards Repainted Cabinetry with Chrome Hardware *In Select Units