250-UNIT, VALUE-ADD MULTI-HOUSING COMMUNITY IN PHOENIX, ARIZONA

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1 hfflp.com 250-UNIT, VALUE-ADD COMMUNITY IN, ARIZONA Holliday Fenoglio Fowler, L.P. ( HFF ), a licensed Arizona real estate broker.

2 2 SEDONA RIDGE APARTMENT HOMES SEDONA RIDGE APARTMENT HOMES 3 THE OFFERING HFF is pleased to present the opportunity to acquire Sedona Ridge ( Property ), a 250-unit garden-style apartment community located in the Ahwatukee Foothills of Phoenix, Arizona. Located west of I-10, off Elliot Road, Sedona Ridge grants residents immediate access to major retail and employment centers, as well as numerous recreational amenities. Constructed in 1989, the Property offers residents spacious one, two, and three-bedroom floor plans coupled with upscale amenities. As a highly accessible community with a proven value-add program, Sedona Ridge offers investors a unique opportunity to acquire an institutional quality asset, in a high barrier-to-entry submarket, with significant upside potential. ADDRESS 5010 E Cheyenne Dr, Phoenix, AZ APARTMENT HOMES 250 RENTABLE SQUARE FOOTAGE 235,345 AVERAGE UNIT SIZE 941 YEAR BUILT 1989 OCCUPANCY [1] 95% ASSET TYPE 2-Story, Garden-Style 2 BED / 2 BATH 47% 3 BED / 2 BATH 6% UNIT MIX 1 BED / 1 BATH 47% FINANCING [1] Rent roll as of 6/13/2018 Free and Clear

3 4 SEDONA RIDGE APARTMENT HOMES SEDONA RIDGE APARTMENT HOMES 5 INVESTMENT HIGHLIGHTS VALUE-ADD OPPORTUNITY The Property currently offers a range of unit finishes with a selection of classic units as well as moderate upgrades from prior and current ownership. A new investor has the compelling opportunity to renovate all units to the higher end finishes that are common to the market. $1,600 $1,500 $1,400 $1,300 $1,200 $1,100 $1,000 $900 $800 $700 $600 Sedona Ridge MONTHLY RENT Mountainside RUNWAY TO RENT GROWTH Galleria Palms AVERAGE MONTHLY RENT Reflections at San Melia Gila Springs MONTHLY RENT PSF Sonoran Apartments PRIME OFFERS CONNECTIVITY TO MAJOR EMPLOYMENT HUBS Nestled along South Mountain Park, the Property sits at the doorstep to the Southeast Valley which is the fastest growing region in Metro Phoenix. The unbeatable access to I-10 connects residents to major job corridors with over 418,000 jobs within a 20-minute drive. Sedona Ridge offers residents easy and convenient connectivity to the Valley s most prominent employers, including: Arizona State University, Intel, Honeywell, GoDaddy, Orbital ATK, JPMorgan, State Farm, Northern Trust, and Bank of the West. $1.70 $1.50 $1.30 $1.10 $0.90 $0.70 $0.50 AVERAGE RENT PSF Post Renovation effective rents at competitive properties are nearly 30% higher than in place rents at Sedona Ridge. Additionally, there is an opportunity to enhance the property with upgraded landscaping and repositioning of underutilized common area space, including a significant expansion of the fitness center.

4 6 SEDONA RIDGE APARTMENT HOMES SEDONA RIDGE APARTMENT HOMES 7 STRONG DEMOGRAPHICS Demographics within a three-mile radius of Sedona Ridge reveal an affluent and educated population attracted to the neighborhood for proximity to employers, top schools, retail, and lifestyle amenities. High Earners Average household income of ±$92,000, with nearly 29% earning over $100,000. Population Growth The population within three miles of the property grew over 11% since 2010 and is expected to grow another 8% over the next five years. Median Home Value A high median home value of ±$315,000 and a current median listing price of ±$354,000 makes renting in the neighborhood very appealing. Sedona Ridge average rents are nearly half the monthly cost of ownership. Ultra-Low Unemployment Rate 3.24% unemployment rate within one mile of the property outperforms the MSA. Top School District Kyrene School District recognized with A+ School of Excellence Award. FAVORABLE MARKET FUNDAMENTALS WITH HIGH BARRIERS The South Tempe/Ahwatukee submarket outperforms the MSA due to its superior accessibility and strong demographics. Occupancy Current submarket occupancy of approximately 95%, projected to remain flat through Effective Rents Average effective rents for the competitive set of ±$1,355, approximately $340 above the MSA average. Rent Growth Through the 12 months ending March 2018, submarket rent growth was over 6%, 141 basis points greater than the MSA. Average submarket rent growth is expected to be 3.6% through Supply Pipeline With natural barriers and no sizeable infill sites, Ahwatukee has no multi-family units scheduled for delivery. JOB GROWTH AND LOW UNEMPLOYMENT IS A CATALYST FOR INVESTMENT Phoenix has outpaced the entire country in regard to job growth, economic growth, and unemployment rate. A new diversified local economy is driving growth and capital investment across Metro Phoenix. The Southeast Valley has been one of the biggest benefactors of corporate expansions and has attracted nationally recognized corporations to the area. The strong employment landscape has also resulted in robust population growth with Phoenix ranking 2nd in the nation for top-20 metro areas.

5 8 SEDONA RIDGE APARTMENT HOMES SEDONA RIDGE APARTMENT HOMES 9 DOWNTOWN MIDTOWN CAMELBACK CORRIDOR SKY HARBOR INTERNATIONAL AIRPORT +43 million passengers pass through annually. Ranked #3 best airports in the country for business travelers. MOUNTAIN PRESERVE Valley s second highest point TEMPE DIABLO STADIUM CAMELBACK MOUNTAIN Thousands of hikers a year, valley s highest point at 2,707 feet of elevation. MARINA HEIGHTS TEMPE State Farm Campus 5 buildings, +580,000 SF FASHION SQUARE MALL DOWNTOWN SCOTTSDALE DOWNTOWN TEMPE +72,000 Students +8,000 Employees SOUTH MOUNTAIN PARK & RESERVE One of the largest municipal parks in the world at over 16,000 acres ARIZONA GRAND GOLF COURSE TEMPE RESIDENTIAL Median Home Price $299,000 Headquarters since 1988, providing technology solutions to consumers and businesses worldwide TEMPE MARKETPLACE +100 Stores +1,300,000 SF AHWATUKEE FOOTHILLS RESIDENTIAL Median Home Price $354,000 E ELLIOT RD 10 S 48TH ST S 51ST ST TEMPE AUTOPLEX 12 Car Dealerships

6 Investment Advisors SEAN P. DEASY SENIOR MANAGING DIRECTOR CA Lic MIKE HIGGINS DIRECTOR, INVESTMENT ADVISORY AZ Lic. SA SHANE ESSERT REAL ESTATE ANALYST AZ Lic. SA Debt Financing BRAD MINER SENIOR DIRECTOR, DEBT AZ Lic. SA Broker of Record RYAN FITZPATRICK BROKER OF RECORD AZ LIC. # BR Holliday Fenoglio Fowler, L.P., HFF Real Estate Limited (collectively, HFF ), HFF Securities L.P. and HFF Securities Limited (collectively, HFFS ) are owned by HFF, Inc. (NYSE: HF). HFF and its affiliates operate out of 26 offices and are a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform including debt placement, investment advisory, equity placement, funds marketing, M&A and corporate advisory, loan sales and loan servicing. For more information please visit hfflp.com or follow HFF on