Holliday Fenoglio Fowler, L.P. ( HFF ) an Illinois licensed real estate broker.

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1 HOFFMAN ESTATES ILLINOIS EXECUTIVE SUMMARY Holliday Fenoglio Fowler, L.P. ( HFF ) an Illinois licensed real estate broker.

2 TOURS Tours: Tours must be scheduled in advance by contacting Marty O Connell or Sean Fogarty see contact information at the back of this offering. The Owner and HFF respectively request that interested parties refrain from contacting on-site personnel or residents. Holliday Fenoglio Fowler, L.P. ( HFF ) is pleased to present Berkshires at Hoffman Estates, a 642-home multi-family apartment community located in Hoffman Estates, Illinois. Berkshires at Hoffman Estates is situated near I- and within the renowned Northwest suburban office and entertainment corridor. The community s immediate access to Chicago s highway system and Metra commuter rail offers direct access to downtown Chicago, O Hare International Airport and the greater metropolitan area. Investors have an opportunity to acquire an institutionally owned and managed community with excellent value-add potential, strong historical occupancies and attractive cash flow located within a premier suburban submarket. 2

3 Libertyville Bluff 59 outstanding amenities including two heated outdoor swimming pools, a hot tub, a Wauconda 14 Cary office/clubhouse. The community includes a mix of one and two-bedroom apartments located in 30 three-story apartment buildings set among a mature, manicured landscape with three on-site ponds Winnetka 53 Hoffman Estates Arlington Heights 14 Des Plaines 2 COOK COUNTY DU PAGE COUN TY Bartlett Although ownership has continued to invest in the property, there is opportunity for an Roselle 59 KANE C O U NTY DU PAGE C O U NTY Batavia Carol Glendale Stream Heights Park Niles Ridge 14 Lincolnwood Warrenville Elmhurst Melrose Park Lombard Oakbrook Terrace Oak Park 2 Westchester Evanston Skokie Wheaton Morton Grove 19 Addison 355 West Chicago INTERNATIONAL AIRPORT 19 Bloomingdale investor to realize additional upside potential. Current ownership has upgraded 400 homes Elk Grove Village O HARE 20 Geneva Schaumburg WOODFIELD MALL to a Bronze standard and 242 homes to a Silver standard realizing rent premiums of $65 - Northbrook 58 to ensure the property s position as a leading apartment community in Hoffman Estates. can be upgraded by further renovating Bronze apartment homes to the Silver standard. Wheeling 12 Elgin St Charles Highland Park COOK COUNTY Buffalo Grove LAKE COUNTY $150 (see page for detailed renovation overview). This verifiable value-add road map Lincolnshire 22 Barrionton 31 Forest Zurich Carpentersville Approximately $11.6 million has been invested into the property by existing ownership 94 Vernon Hills Algonquin West Dundee = METRA COMMUTER TRAIN LINES 176 M C H ENRY C O U NTY L A K E C O U NTY Crystal sand volleyball court, two tennis courts, a dog park, playground, fitness center, and K AN E C OU NTY CO OK CO UNTY B erkshires at Hoffman Estates is a garden-style apartment complex featuring North Chicago Island Oak Brook 294 Brookfield 43 LAKE MICHIGAN CHICAGO CBD Cicero 41 Chicago Regional Map and Metra Commuter Rail Lines EXECUTIVE SUMMARY 3

4 OFFERING SUMMARY Name: Address: Berkshires at Hoffman Estates 875 Pacific Avenue Hoffman Estates, IL Number of Buildings: 30 three-story apartment buildings 1 two-story office/clubhouse 1 one-story maintenance shop Number of Homes: 642 Gross Building Area: Rentable Square Feet: Average Home Size: 702,312 SF 619,0 SF 966 SF Cypress (Silver) Kitchen Occupancy: 95.0% Year Built: Site Area: acres Parking: 1,316 surface spaces Parking Ratio: 2.05 spaces per home Financing*: Available "All-Cash" *Please contact Matthew Schoenfeldt for current debt pricing (see back of this offering for contact information). BERKSHIRES AT HOFFMAN ESTATES UNIT MIX SUMMARY* CODE DESCRIPTION # OF UNITS SQ. FT AVERAGE ASKING RENT RENT PSF 1x1 Diamond (Bronze) $1,062 $1.33 1x1 Diamond (Silver) $1,128 $1.41 2x1 Cypress (Bronze) $1,125 $1.25 2x1 Cypress (Silver) $1,209 $1.34 2x2A Bradford (Bronze) 31 1,000 $1,182 $1.18 2x2A Bradford (Silver) 13 1,000 $1,265 $1.27 2x2B Ashley (Bronze) 118 1,100 $1,284 $1.17 2x2B Ashley (Silver) 102 1,100 $1,369 $1.24 Total/Average $1,208 $1.25 *See Financial Overview Section for additional details 4

5 d Jane Addams Memorial Tollway WOODFIELD MALL Higgin CURRENT LOCATION p r e s s w ay ROSE LL E onq uin M em or Ro D ad i y 83 A ELK GROVE VILLAGE O Hare Chicago CBD Biesterfield Road (16 miles southeast) International Airport Devon Avenue 3 (6.0 mile east) Area Map of Top Employers, Shopping & Entertainment Investment Highlights PROXIMITY TO PREEMINENT EMPLOYMENT CORRIDOR O U T S TA N D I N G S H O P P I N G & E N T E R TA I N M E N T Hoffman Estates is located within the Northwest suburban office submarket, the The I- (Jane Addams Memorial Tollway) corridor offers retail amenities unparalleled in largest employment center outside of downtown Chicago accounting for 26.5% suburban Chicago including regional shopping centers, lifestyle centers, and destination of the total Chicago suburban office market. Residents are in close proximity to retailers. Woodfield Mall, just 6.2 miles east of Berkshires at Hoffman Estates, is many leading Chicago blue-chip employers including AT&T (3.3 miles), Sears (6.2 miles), the largest shopping center in Illinois and 4th most-visited in America. Chicago s Zurich American Insurance (6.3 miles), The Nielsen Company (6.8 miles), IBM (7.1 miles), first IKEA and Cabela s are both located within a short 15 minute drive of the property. and Motorola Solutions (7.5 miles). EXECUTIVE SUMMARY 5 York road Schaumburg Airport re Ex Alg ms Busse Road Bartlett Schaumburg Nerge Road H a da a MILWAUKEE DISTRICT WEST LINE Elgin O 3 Ad lw (4.0 miles fromthe Property) Gol l To Hanover Park Metra Station MT al t Busse Forest Nature Preserve S CH AU M B UR G Road ne STREETS OF WOODFIELD Rohlwing Road Stree Plum Grove Road Park Roselle Road Barrington Road 19 Irving Schaumburg Road Ja oa d Bode Road s Road 14 Central Road 58 Meacham Road Bartlett Road FUTURE LOCATION Golf Road s Road 58 Golf Road oad 62 Higgin Poplar Creek Forest Preserve off R n H eigh ts R ST. ALEXIUS MEDICAL CENTER Kirch Busse Road New Sutton Road HOF FMAN E STATE S Schaumburg Road Kensington Road we st Hig hw ay to HEADQUARTERS 59 ad ng n Ro SOLUTIONS rth rli Roa No Euclid A Elmhurst Road ins nqui Wilke Road Higg 53 Algo Meacham Road HEADQUARTERS SEARS CENTRE ARENA Paul Douglas Forest Preserve 59 HE I GHT S oad MEADOWS Euclid Avenue

6 TRANSPORTATION GATEWAY Fitness Center Located in close proximity to I-, I-2, and the new Elgin-O Hare Expressway (Route 3) expansion project, residents can quickly access downtown Chicago (34 miles) and the network of highways serving the broader Chicago area. Berkshires at Hoffman Estates is just 4.0 miles from the Hanover Station of the Metra Milwaukee District West Line (MD- W) providing convenient transportation for residents commuting for work or pleasure. ADJACENT TO LEADING MEDICAL CENTER St. Alexius Medical Center is a 339-bed community hospital located just 1.0 mile north of Berkshires at Hoffman Estates. St. Alexius is both a top employer in Hoffman Estates (2,550 employees) and the #5 ranked hospital in Illinois with several specialties ranked nationally by U.S. News & World Report. Two Heated Outdoor Swimming Pools VERIFIABLE VALUE-ADD OPPORTUNITY Current ownership has invested $6.3 million in upgrading apartment interiors ($11.6 million total across property) realizing premiums of $65 on Bronze and $150 on Silver standard renovations. An opportunity exists for an investor to continue this renovation program by upgrading the 400 Bronze standard homes to Silver standard and realize significant rent premiums. An investor could also invest capital in office/clubhouse and amenity upgrades to further drive rent growth. ATTRACTIVE FLOOR PLANS & AMENITIES All homes feature large, functional floor plans and are equipped with microwaves, dishwashers, central heat and air conditioning, gas fireplace, and in-unit washer and dryer 1. The fully-amenitized community includes two heated outdoor swimming pools, a hot tub, a sand volleyball court, two tennis courts, a dog park, playground, fitness center, and trails Playground winding through the mature, manicured landscape with three on-site ponds Twelve (12) homes do not include in-unit washer/dryer

7 Community Center STRONG MARKET FUNDAMENTALS The Northwest Cook submarket has historically been one of the strongest performing submarkets in the region due to proximity of major employment and entertainment corridors. Axiometrics forecasts average effective rent growth of 4.5% annually over the next three years. Strong future rent growth and a low vacancy rate (4.3% HISTORICAL CASH FLOW & OCCUPANCY Berkshires at Hoffman Estates maintains a high occupancy rate (95.0% as of March 2015) and generates strong cash flows (T-12 February 2015 operating expense ratio of 45.5%) reflective of strong market fundamentals, sound management, and robust demand for housing in the attractive suburban market of Hoffman Estates. in 2014) are supported by municipal resistance to new apartment development, lack of feasible development sights, and shortage of new supply currently under construction. ALL-CASH OFFERING The property can be purchased on an all-cash basis, thereby allowing investors the ability to capitalize on current advantageous financing available. EXECUTIVE SUMMARY 7

8 INVESTMENT CONTACTS MARTY F. O CONNELL Managing Director moconnell@hfflp.com SEAN P. FOGARTY Managing Director sfogarty@hfflp.com WICK B. KIRBY Associate Director wkirby@hfflp.com RYAN T. SOULS Analyst rsouls@hfflp.com FINANCING CONTACT MATTHEW R. SCHOENFELDT Managing Director mschoenfeldt@hfflp.com HFF CHICAGO 181 West Madison Street Suite 30 Chicago, IL hfflp.com 2015 HFF and HFFS (HFF Securities L.P.) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 22 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry. HFF together with its affiliate HFFS offer clients a fully integrated national capital markets platform including debt placement, investment sales, equity placement, advisory services, loan sales and commercial loan servicing. For more information please visit hfflp.com or follow HFF on HFF has been engaged by the owner of the property [properties] to market it [them] for sale. Information concerning the property [properties] described herein has been obtained from sources other than HFF and we make no representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all references to age, square footage, income, expenses and any other property specific information are approximate. Any opinions, assumptions, or estimates contained herein are projections only and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a buyer. Buyers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change. Atlanta Austin Boston Charlotte CHICAGO Denver Dallas Florham Park (NJ) Houston Indianapolis Los Angeles Miami New York Orange County (CA) Orlando Philadelphia Pittsburgh Portland (OR) San Diego San Francisco Tampa Washington, DC