94.8 % 3.4 % average annual effective rent growth since ,501 average market rent per unit as of Q M total sales volume YTD 2018

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1 SPOTLIGHT ON CAPITOL HEIGHTS SUITLAND FEDERAL CENTER EXCLUSIVE OFFERING: ELSINORE COURTYARD & FITCH APARTMENTS Market Overview 94.8 % overall occupancy as of Q % Three Bedroom Rental Overview 4% Four Bedroom 2% Studio 3.4 % average annual effective rent growth since 2013 $ 1,501 average market rent per unit as of Q % Two Bedroom Inventory Composition 39% One Bedroom $ 64.0M total sales volume YTD 2018 Studio 1 BDR 2 BDR $1,125 $1,259 $1,510 Data courtesy of Greysteel Research, CoStar Realty Information, Inc. 3 BDR $1,667 Survey includes multifamily properties greater than 10 units (9,630 units in aggregate). Fully affordable properties and the following asset types are excluded from the survey: senior, corporate, military and student. 4 BDR $1,791 $0 $500 $1,000 $1,500 $2, Greysteel / 1

2 Rent Comparables The report below features a sampling of properties located in the Greater Capitol Heights submarket cluster. Please note the different locations and adjust comparisons accordingly. Mosaic at Largo Station Villages at Morgan Metro Cameron Pointe Lorring Park Verona at The Park Property Year Built Occupancy 95.9% 94.7% 95.7% 96.7% 83.8% Rental Rates Unit Type Per Unit Per SF Per Unit Per SF Per Unit Per SF Per Unit Per SF Per Unit Per SF 1 BDR $1,657 $2.00 $1,120 $2.11 $1,302 $1.48 $1,158 $ BDR $2,162 $1.69 $1,653 $1.67 $1,310 $1.75 $1,325 $1.30 $1,455 $ BDR $1,899 $1.48 $1,609 $1.63 $1,607 $1.46 $1,706 $ BDR $2,102 $1.51 Amenities Balcony/Patio Ceiling Fans Dishwasher Fitness Center Pet-Friendly Pool Premium Countertops Premium Flooring Stainless Steel Appliances Walk-in Closets Washer/Dryer Listed properties represent a small cross-sampling of the overall market. Data courtesy of CoStar Realty Information, Inc. CONTINUE TO SALES COMPARABLES 2018 Greysteel / 2

3 Recent Sales The report below features a sampling of properties sold since December 2017 in the Greater Capitol Heights area. Please note that different locations, amenity base, asset vintage, unit sizes and mixes, and other variables contribute to variances in sales metrics, and adjustments to comparisons should be made accordingly. Also note that sales comparables provide a snapshot of recent transactions and are not a perfect predictor of future market movement and behavior. PARKLAND SQUARE 2100 County Road Forestville, MD THE VERONA AT LANDOVER HILLS 4085 Warner Avenue Landover Hills, MD TRIBECA AT CAMP SPRINGS 4701 Old Soper Road Camp Springs, MD STEEPLECHASE APARTMENTS 150 Steeplechase Way Largo, MD MIDTOWN AT CAMP SPRINGS 4400 Telfair Boulevard Camp Springs, MD Property Close Date June 2018 June 2018 January 2018 January 2018 December 2017 No. of Units Year Built/ Year Renovated 1963 / Price $19,100,000 $104,500,000 $40,163,000 $44,500,000 $63,200,000 Price/Unit $129,932 $143,741 $208,098 $185,417 $217,182 Price/SF $ $ $ $ $ Cap Rate 6.25% 5.33% % 5.79% Listed properties represent a small cross-sampling of the overall market. Data courtesy of Greysteel Research, CoStar Realty Information, Inc. CONTINUE TO EXCLUSIVE LISTING 2018 Greysteel / 3

4 Exclusive Listing FITCH APARTMENTS & ELSINORE COURTYARD Fitch Apartments Elsinore Courtyard Year Built Year Built 1968 Units 75 Units 152 Construction Brick Façade Construction Brick Façade Zoning R-3 Zoning R-3 Total Rentable SF 54,630 Total Rentable SF 122,351 Average Unit Size 728 SF Average Unit Size 805 SF Average HCVP Rent $1,334 Average HCVP Rent $1,158 Average Rent Roll Rent $1,137 Average Rent Roll Rent $1,048 Value-Add Opportunity Economies of Scale Since current rents are below market rates by over 10% and a substantial portion of the Properties are vacant, new ownership has the ability to immediately increase revenues. Rental rates increases can be accomplished by implementing a rent growth strategy using various methods including the utilization of the Housing Choice Voucher Program (HCVP) where rent levels are set outside building rent control limits, or by incremental rent increases upon turnover. Located in the Marshall Heights neighborhood of Southeast Washington, D.C., Elsinore Courtyard and Fitch Apartments would total 227 units. The communities close proximity to one another and central management office in Elsinore Courtyard provide for management efficiencies that wouldn t otherwise be achievable in a submarket like Marshall Heights with low density residential zoning. For more information about this listing, please contact: W. KYLE TANGNEY Managing Director ktangney@greysteel.com HERBERT SCHWAT hschwat@greysteel.com TOPA Exempt The Properties have a special exemption from the District s Tenant Opportunity to Purchase Act (TOPA) because of the current receivership status and thus avoids the time-consuming closing periods and the subsequent inefficiencies TOPA imposes on financing and construction timelines. New ownership will realize immediate value in the ability to perform a quick close without uncertainty and avoid expenses associated with TOPA Greysteel / 4

5 DC WASHINGTON, D.C Old Georgetown Road, Suite 301 Bethesda, MD P F New York Los Angeles Dallas Fort Worth Washington D.C. Philadelphia Phoenix Denver Baltimore Norfolk SALES: FINANCE: ARI FIROOZABADI W. KYLE TANGNEY HERBERT SCHWAT BRENDAN SCANLON President & CEO Managing Director Senior Director INVESTMENT SALES DEBT & STRUCTURED FINANCE TRANSACTION SERVICES Ash Helmi Mark Bittenbender Senior Vice President Ari Firoozabadi** President & CEO Duerk Brewer Chief Operating Officer Yassi Farzaneh Corporate Services Director Christian Alves Investment Associate Jake Ruppert Finance Associate Rebecca Wiley Marketing Director Keeley Byer Lead Research Analyst Kristen Singletary Senior Designer Dutch Seitz Investment Associate Nicole Capobianco Transaction Services Director * Corporate Headquarters and Transaction Services Center ** For more information or to inquire about Greysteel, please contact Ari Firoozabadi, CEO & President (af@greysteel.com ) Greysteel is licensed in: California / LL Washington D.C. / Maryland / RB Pennsylvania / Texas / Virginia / RB Delaware / New York 2018 Greysteel / 5