3 Property Portfolio College Ave New Brunswick Campus

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1 3 Property Portfolio College Ave New Brunswick Campus Umang Swali of KWC - Power Moves Team is proud to present an opportunity to purchase a portfolio of 3 cash cow properties housing a total of 31 students on the Rutgers New Brunswick College Ave Campus. Since the early 2000s, the portfolio has held a 0% vacancy rate. Rents have increased 2.5% or greater year over year, leasing up a record pace. The Rutgers New Brunswick campus has 42,000 students enrolled. Rutgers University Housing only has 16,000 beds; there is a shortfall in supply of off campus housing. The situation is undersupplied such that RU Housing hosts a lottery for student housing. Since 2011, students were housed in hotels 15 minutes from campus due to the lack of housing supply. These three properties continue to benefit from rent increases, and no vacancy. 5 Out of the 6 Units in this portfolio have already been rented at higher rents for the upcoming term. Moreover, 2 of 3 of these lots are adjacent, creating potential for a future development opportunity. The strength of this deal lies in the location, strong cash flow, reliably tenancy, and upside in future land value. A lender is ready to finance this purchase with 25% down for a creditworthy sponsor. 2,471,000 Purchase Price NOI 176,831 Cap Rate 7.16% Cash on Cash Returns: 10.74% Lender Ready to Finance With 25% down Long Term Tenancy Leased Through June 2017 Fully Leased 6 months prior to expiration Discounted from 2,704,938 If purchased as a package

2 167 Hamilton Street (CLICK) 171 Hamilton Street (CLICK) 3 Family Unit 11 Total Students 1 Family Unit 6 Total Students Rent Unit 1: 1,306 Rent Unit 2: 2,163 Total Rent: 4,066 ( ) Rent Unit 3: 3,520 Total Rent : 6989 ( ) 173 Hamilton Street (CLICK) 2 Family Unit 14 Student Occupants Rent Unit 1: 2,524 Rent Unit 2: 6,022 Total Rent: 8,546

3 INVESTMENT SUMMARY STUDENT HOUSING Price: 2,471,000 Net Operating Income: 176,831 Acquisition Cap Rate: 7.16% CASH ON CASH RETURNS: 10.74% COMMERCIAL LENDER READY TO FINANCE Housing 31 Students 3 Properties One Three (3) Unit property One Two (2) Unit Property One One (1) Unit Unit Property All Legal, Registered Rents with the City of New Brunswick Well-Maintained Assets Private Garbage Removal Updated Kitchens & Bathrooms, recessed lighting New roofs and Windows installed in early 2000s In House Washer / Dryer in most units Dishwasher in most units No Oil Tanks Steam & Gas Heat Private Backyards Private Basement None of the properties are in a flood zone Separately Metered Tenants Pay All Utilities including Sewer, Gas, Electric, Etc. Fully Leased through June 2016 Every Year, Portfolio Leases up 6 months before Expiration In 2014, 2015 Portfolio Leased up 6 Months Before Expiration (Fastest on Record) 4.1% Rent Increase June Year <10 Minute walk to Lecture Halls, Student Center, College Ave Gym, Restaurants and Amenities

4 Executive Summary We are proud to present this opportunity to purchase a portfolio of 3 cash flowing properties located on Rutgers University s College Avenue Campus in New Brunswick, New Jersey. The portfolio is comprised of one, two and three family units, housing a total of 31 students. The properties are located less than 10 minutes walking distance to College Ave, Robert Wood Johnson Hospital, Rutgers University Facilities, Lecture Halls, Bookstores, Student Center, Buses, Gyms, NJ Transit, Restaurants, and the arts district of New Brunswick. The majority of the units feature in-house washer/dryer, dishwasher, steam/gas heat, and private garbage removal. All of the properties have been fully occupied with a 0% vacancy rate for over 15 years. Going forward, the landlord has signed leases for the June school year. This turn-key stable investment opportunity is a cash cow with upside potential as the Rutgers Campus expands with the growing Student Enrollment at Rutgers New Brunswick. The properties are primarily located within the 6 th ward of New Brunswick. While all of the properties are income producing, it is important to note two of the three properties are adjacent to one another, and the third offered property is separated by just one other owner. As Rutgers University expands its campus to accommodate its rapid growth, the land these properties are on may increase in desirability.

5 Fastest Lease Up Since 2009 All of the five properties within this portfolio have signed leases in place for the June May 2016 year. The entire portfolio was leased up, at higher rents by November 15, 2014, seven months before lease expiration. The Landlord states that normally they all lease up by March, three months before expiration. This year set a record for fastest lease up period. Moreover, the rent roll is to increase by 2% starting June, Growth & Demand Drivers Landlords in the New Brunswick College Avenue Campus benefit from robust demand generated by a fast growing student population. Enrollment in Rutgers University has increased 14% since Lender Ready To Finance Given the portfolio s stability and irreplaceable location, there is a lender ready to finance this portfolio purchase. The lender is offering fixed rate financing with recourse and non-recourse options. Please review the Buy Side Analysis and Key Facts (pages 8-10 for details). The university had an increase in enrollment of 7% from the school year. Rutgers received 33,315 applications from new students and transfer students in 2013 across its three campuses. That is more than 1,700 more than 2012 year and a 5 percent increase. The Association for International Educators awarded Rutgers University with the Simon Award in the year of The university has welcomed international students and scholars on a record basis each year. Rutgers had a 61% increase in undergraduate international student enrollment and 13% increase in graduate international student enrollment between the and academic years. In , Rutgers New Brunswick Campus had a 17.6% increase. This translates to 3,900 international students housed on the New Brunswick campus as of 2014.

6 UMDNJ MERGER In July of 2013, Rutgers University acquired 7 of the 8 colleges run by the University of Medicine and Dentistry of NJ (UMDNJ). Accordingly, the number of students at Rutgers University has grown from 40,000 to 65,000 students from 2010 to 2014, making it the largest increase in students in the University s history. BIG TEN CONFERENCE In November 2012, Rutgers was accepted into the Big 10 Conference. This 14 member conference is made up of prominent academic institutions. The conference, which includes Penn State, Ohio State, University of Michigan, collectively awards 15% of the nation s doctoral degrees. The most popular conference in the nation has driven a national spotlight on the University. EMPLOYMENT CENTER The City of New Brunswick is buoyed by many other demand factors including major employers like Robert Wood Johnson, St Peters Hospital, Johnson & Johnson, Research Centers, and the thousands of employees of the city. New Brunswick houses employers in the Information Technology, Banking & Insurance Services, Real Estate, Legal, and Accounting Industries. New Housing Supply Before 2010, the last time Rutgers built new housing was in the 1980s. By April 2009, the University was holding lotteries for students in need of Rutgers Housing. In 2010 and 2011, the university was short 600 dorms on the College Avenue campus. The students who did not win the lottery were put in hotel rooms in Somerset, NJ. The Gateway Center at Easton Ave & Somerset Street, built by DevCo, added 192 rental units, 42 condos, and 60,000 square feet of retail space to the supply of housing. The entire project sold out in 2012, including the retail, rentals and the condominiums. Today, the same condominiums are selling for 13% higher than 2012, yielding an average equity appreciation of 6.5% year-over-year. The rentals sold out at 1900 per month for 1BR/1BA units. Tenants have to meet salary requirements of 35X monthly Rent.

7 Infrastructure - Transit The city of New Brunswick is served rail by NJ Transit and Amtrak. With NJTransit, Patrons can reach New York City within 1 hour, and Philadelphia within 1 hour. The major highway arteries serving New Brunswick include Route 18, Route 1, Route 27, Interstate 287 and NJ Turnpike. The Newark International Airport is 40 minutes north by Train or Car. New Brunswick is served by two major hospitals, including Robert Wood Johnson (on College Ave Campus) and St. Peters Hospital. The University is served by an extensive bus transportation system, connecting all campus facilities for students across the campuses with very short commute times for students and faculty. In September 2013, DevCo broke ground on a new 330,000,000 project, known as the College Avenue Redevelopment Initiative. This project will add a new Exclusive Honors College, Academic Building, Honors-Student Dorms, and a Campus Green with a 600-foot Outdoor Screen to broadcast football games and movies. DevCo will also build new facilities for Rutgers Hillel and the New Brunswick Theological Seminary. The College Avenue Campus Redevelopment Initiative will provide long overdue infrastructure improvements along College Avenue and connections between the new facilities by upgrading utility installments, pedestrian walkways, bike paths, ADA accessibility as well as other essential and aesthetic streetscape elements.

8 Key Facts Hamilton Street - Rutgers Campus Portfolio Address 167 Hamilton 171 Hamilton 173 Hamilton Total Monthly Rent 6,989 4,066 8,546 Lease Commencement June 1, 2015 June 1, 2015 June 1, 2015 Lease Expiration May 18, 2016 May 18, 2016 May 18, 2016 Number of Students Legal Occupancy BR/BA Unit 1 1BR/1BA 3BR/2BA 2BR/1BA BR/BA Unit 2 4BR/1BA 5BR/2BA BR/BA Unit 3 5BR/2BA Number of doubles Number of Singles Lot Block Lot Size 33 x x x 146 Lot Size (Acreage) acres acres acres Year Built Dishwasher N Y Apt 1 NO / Apt 2 Yes Washer/Dryer in unit N Y Y Oil Tank N N N Radiant Heat Y Y Y AC Wall Units N Central AC Apt 2 Central AC Garage N N N Driveway Y N N Private Garbage Removal N N N Water Heater install date (if Recent Recent Recent available) Boilers installation date (if Recent Recent Recent available) Property Survey Available Yes Yes Yes Video Tour Yes Yes Yes

9 Total Monthly Rent % of Gross Total Yearly Rent 100% If Sold As Individual Sales Price Per Property Income & Expenses 167 Hamilton 6,989 83, , Hamilton 4,066 48, ,108 Lease Commencement Jun-15 Jun-15 Jun-15 Lease Expiration May-16 May-16 May-16 Number of Students Legal Occupants Permitted Hamilton ,546 19, , ,212 1,179,348 2,704,938 Total Students 31 Operating Expenses % of Gross Property Taxes 15.41% 12,924 6,120 17,280 36,324 Snow Removal 0.39% Landscaping 0.48% ,200 Repairs & maintenance 1.11% 1, ,700 Three Year Fire Safety Inspection 0.04% Property Management (3%) (see notes) 3% 2,516 1,464 3,077 7,056 Vacancy Allowance (2%) (see notes) 2% 1, ,051 4,704 Gas & Electric (Tenant) Sewer (City Bills LL, Tenant Pays) Garbage Removal (Private) 0.60% ,500 Insurance (through June 2015) 1.70% 1,428 1,140 1,248 3,816 Total Expenses 24.72% 20,955 11,760 25,666 58,381 Net Operating Income 62,913 37,032 76, ,831

10 Buy Side Analysis Down Payment 25% Purchase Price (As a Package of three) 2,471,000 Down Payment (Equity) - Includes Closing Costs* 657,750 Est Closing Costs (Mortgage Broker, Legal, Inspection, Appr. Env. Etc) 40,000 Mortgage Amount (Debt) 1,853,250 Monthly Net Operating Income 14, Monthly Mortgage (4%, 5/30, Reset) 8,847 Monthly Profit (Cash Flow) 5,889 Yearly Profit (Cash Flow) 70,662 Debt Coverage Ratio 1.67 Cash on Cash Returns 10.74% The portfolio houses total 31 students (all legal). Landlord makes 355 day leases, commencing June 1, and ending on May 18. This Gives Landlord 13 days time to accommodate the space for new tenants. 171 & 173B forced hot air & central air conditioning. 167A, 167B & 173A hot water baseboard. 167C Steam. None of the properties have oil tanks, as per Landlord. Community Bank is offering purchase financing with 25% down payment. They also have a NON-RECOURSE option with a larger down payment A lender is interested in providing one commercial mortgage for the entire portfolio. Verbal Terms Quoted 5 years fixed 30 years amortization - reset after 5 years 4% % Interest Rate With 25% down payment, bank requires personal guarantees Standard environmental, appraisal, commitment fees and prepayment fees involved.

11 Underwriting Facts One 3-family, one 2-family and one 1-family properties. All units pre-leased for the as well as school year, 6 months before expiration. Leases (12 months) Begin June 1, 2014 and expire May 18, 2015 Leases have been signed for June 1, 2015 to May 18, 2016 term Rent increases every year through its holding period Property Management (3%) is not an actual expense to Landlord. Vacancy (2%) is not an actual expense to LL. The Landlord's ACTUAL Vacancy has been 0% per year since taking ownership (15+ years). Broker has deducted for conservative underwriting. All Leases have 1.5 months security deposit All rents are registered rents with the city of New Brunswick Landlord Pays extra for private garbage removal on all of the properties. Tenants Pay All Utilities LL Collects Water and Sewer Bill and Tenant Reimburses

12 OFFERING OVERVIEW We are proud to present you with this stable, cash-flowing investment portfolio in the burgeoning New Brunswick College Ave Market. The portfolio has held a 0% vacancy rate since ownership, and is fully leased for the coming school year at increased rents. Moreover, these houses are adjacent and therefore have future development potential. This investment offers long term upside while providing reliable cash flows for years to come. A lender has stepped up to the plate to offer competitive terms on financing the purchase. Please note* Investors are free to use any source of funding they choose. PLEASE SWALI@KWCOMMERCIAL.COM OR CALL XT 166 TO CONFIRM AN APPOINTMENT Feel free to CALL SWALI with any questions XT 166 Thank you for your time in considering this investment opportunity!