Autumn Ridge 3888 Autumn Ridge Court Memphis, Tennessee 38115

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1 Autumn Ridge 3888 Autumn Ridge Court Memphis, Tennessee CSI Project Jones Lang LaSalle Multifamily, LLC 625 West College Street Grapevine, Texas November 21, 2016

2 November 21, 2016 Mary Davis Jones Lang LaSalle Multifamily, LLC 625 West College Street Grapevine, Texas Autumn Ridge 3888 Autumn Ridge Court Memphis, Tennessee CSI Project Ms. Davis, Consulting Solutions Inc. is pleased to provide Jones Lang LaSalle Multifamily, LLC with the enclosed Property Condition Assessment Report for Autumn Ridge. This report was prepared consistent with a Fannie Mae scope of work and we certify that this report meets all required minimum protocols and standards. The scope of work performed and our subsequent findings are presented in our report. Please do not hesitate to call if we can be of further assistance. Beverly Sneddon Vice President 401 N. Michigan Avenue, Suite 1200 Chicago, Illinois

3 1.1 Summary of PA Findings 1. 2 Replacement Items (Physical Needs Over the Term) 3.1 Site Components 3.2 Architectural Components 3.3 Mechanical, Electrical and Plumbing Components 4.1 Moisture and Microbial Growth 4.2 Pest Management 5.1 Special Hazards Peak Ground Acceleration Hazards / Geographic Conditions / Catastrophic Loss Potential Flood Zone Regulatory Compliance 6.1 Known Problematic Materials References used by the Property Evaluator for Preparation of PA Report 7.2 Assessment Methodology 7.3 Limitations Exhibit A: Exhibit B: Exhibit C: Exhibit D: Exhibit E: Exhibit F: Exhibit G: Photo Documentation Location Map Aerial Photo Structural Risk Evaluation Questionnaire Pre-Site Visit Questionnaire Property Evaluator Qualifications

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5 Autumn Ridge Property Condition Assessment Page 5 Consulting Solutions has completed a Fannie Mae Property Condition Assessment for Autumn Ridge in Memphis, Tennessee. This report was prepared consistent with the scope of work set forth in Fannie Mae Form 4099 ( Instructions for the Property Evaluator Version 2.1, 2016) and all required minimum protocols and standards provided by that standard have been met by our assessment and this report. No additional Fannie Mae assessment modules were utilized for this assessment. Consulting Solutions found the property to be structurally sound and in generally average overall condition. No significant issues of concern were identified with mechanical systems at the subject. No problematic materials were identified. Management reported no significant issues of concern at the subject. No major work, other than the repair of Unit , (beyond routine maintenance) was in process at the time of our inspection. Maintenance practices at the subject appear to be generally appropriate with no issues of note or concern. Select areas of sheet rock repair and flooring repair were in progress in Unit at the time of our site inspection. Management reported that a leak from a washing machine in the unit above caused the damage. CSI considers this to be a down unit, however, management anticipated the repairs to the unit would be completed within two weeks of the inspection. CSI also noted water staining and mold on the ceiling of Unit , water staining on the ceiling of Unit from a past minor leak, and mold build-up at bedroom windows in Unit and These repairs are included on the immediate repairs list. We also recommend the subject continue the implementation of the in-place Moisture Management Program. Data Collection and Records Inquiry The provided Pre-Site Visit Questionnaire was completed and is attached in the Appendix. CSI was also provided with the following maintenance and operations records, as-built drawings, surveys and other documents for review, and information from these sources have been incorporated into our findings: - ALTA/ACSM Land Title Survey prepared by GE Waggoner Sumner & Cannon, Inc., dated June 26, Mold Management Guidelines, prepared by LEDIC Management Group, dated May 2013 Remaining Economic Life Assuming timely completion of the repairs recommended in this Property Condition Assessment, continuation of appropriate maintenance and periodic replacement of site, systems and building components as necessary over the term, Consulting Solutions believes that the remaining economic life of the subject will exceed thirty-five years. Following is a summary of the recommended critical repairs: CSI recommends pedestrian paving, asphalt paving, pool deck and wood fencing repairs. The clubhouse roof has missing and damaged shingles, trim repair is recommended at some buildings. Erosion repair is recommended at Building Debris should be removed from the detention pond and interior repairs are recommended in some units. We also recommend the power washing of the building exteriors and the installation of cane rails in some locations. Life Safety Repairs Critical Repairs Deferred Maintenance Replacement Reserves (inflated) $0 $20,700 $0 $318

6 Autumn Ridge Property Condition Assessment Page 6 Autumn Ridge was constructed in 1997 and consists of 140 apartment units located within 12 two and three-story buildings with an additional leasing office / clubhouse building. Asphalt parking and drives are present, with 225 open parking spaces provided. Landscaping is well developed, consisting of mature grass, trees and shrubs. The subject is situated on a 7.00 acre parcel in a developed area and is bordered by residential developments to the east and south. A school is present to the west with undeveloped land and commercial beyond to the north. There is a detention pond on the west side of the property. The subject apartment buildings are wood framed with concrete slab foundations. Roofs are pitched, with asphalt shingles, and they are in average condition. The building exteriors are vinyl siding and soffits. The windows are aluminum assemblies with dual pane glass and screens provided. Wood framed balconies with metal railings are provided on all upper level units. Concrete patios with vinyl enclosures are present on all ground floor units. Wood framed staircases with wood treads provide access to upper level units. Water distribution pipes are CPVC, and domestic hot water is provided via individual 40 gallon electric units. Heating and cooling is provided by electric heat pumps. Electric branch wiring is copper, and each unit has 125 amp service. Smoke and fire detection is hard wired and battery powered. The buildings are fully sprinklered. Dwelling units have standard grade finishes with carpeting in the bedrooms and living areas. Sheet vinyl is present in the kitchens and baths. Provided appliances include a dishwasher, electric range, refrigerator and disposal. Laundry hook-up are provided in each unit, equipment is the responsibility of the tenant. Kitchen sinks are single tub stainless steel. Bath sinks are drop-in, surrounds are fiberglass. Mini blinds are provided in all units. A gas fireplace is present in the leasing office, but was disconnected at the time of our site visit. Tenant storage is provided off the patio / balcony area.

7 Autumn Ridge Property Condition Assessment Page 7 EXECUTIVE SUMMARY - PROPERTY NFORMATION Property Name Autumn Ridge Property Address Date CSI Inspector Date of Construction / Age Date of Renovation (if applicable) Age of Roofs Number of Residential Buildings Number of Ancillary Buildings Number of Dwelling Units Number of Stories Rentable Square Feet Gross Square Feet Site area size (acres) Buildings / Improvements in Special Flood Hazard Zone (SFHA)? Aluminum Wiring Present? Galvanized Piping Present? Polybutylene Plumbing Present? Other Problematic Materials? 3888 Autumn Ridge Court Memphis, Tennessee November 21, 2016 Richard Warren 1997 construction date / 19 years old Not applicable Seven years old 12 apartment buildings One (leasing office/clubhouse) 140 units Two and three-story buildings 145,040 square feet 173,536 gross square feet 7.0 acres No. Zone X - an area outside the 100 and 500 year floodplain Not present Not present Not present None present Centralized Heating Boilers? Centralized Domestic Hot Water Boilers? HVAC Centralized or Individual in Units? If Centralized HVAC, # per building Seismic Peak Ground Acceleration Phased Property? Non-Contiguous Parcels? ASTs or USTs present? Circuit Breakers or Fuses? Amps per Unit No No Individual Not applicable 0.12g One phase No No ASTs or USTs are present Circuit breakers present 125 amp service

8 Autumn Ridge Property Condition Assessment Page 8 EXECUTIVE SUMMARY REPLACEMENT RESERVES AND IMMEDIATE COSTS Uninflated Reserves per Unit $263 Inflated Reserves per Unit $318 Total Immediate Repair Costs $20,700 SITE SURVEY DATA Date of Survey Weather Conditions Temperature Visibility / Access to Subject November 21, 2016 Sunny Temperature in the 90s Main entry to the property from Ridgeway Boulevard at the north side of the site Property Manager (site interview) Merrie Beck Property Maintenance Manager Management Company None Ledic

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10 PROPERTY USEFUL LIFE TABLE AutumnRidge Memphis,Tennessee ConstructionDate: 1997 Item EUL Eff. Age RUL RUL: EUL Ratio Action Required Rating during Loan Term 1-5, NA (Yes/No/NA) Immediate Needs Replacement of Capital Items (per / unit) PNA Report Section Reference for Comments Source of Cost Estimate SITE IMPROVEMENTS Storm Drain Lines % 2 No $ - $ - Section 3.1 Site Signage, Monument % 2 No $ - $ - Section 3.1 Asphalt Pavement % 3 Yes $ 5,000 $ - Section 3.1 Field Experience Seal coat and Striping % 2 Yes $ - $ 71 Section 3.1 National Estimator Sidewalks, concrete % 2 Yes $ 500 $ 43 Section 3.1 Field Experience Sanitary Lines % 2 No $ - $ - Section 3.1 Water Supply Lines % 2 No $ - $ - Section 3.1 Fencing, Wood % 2 Yes $ 500 $ - Section 3.1 Field Experience Site Lighting % 2 No $ - $ - Section 3.1 Concrete, Pool Deck % 3 Yes $ 5,000 $ - Section 3.1 Field Experience Detention Pond, Cleanup Yes $ 200 $ - Section 3.1 Field Experience Erosion, Repair Yes $ 500 $ - Section 3.1 Field Experience ADA Accessibility Yes $ - $ - Section 5.3 In-house repair STRUCTURAL SYSTEMS AND BUILDING ENVELOPE Foundations % 2 No $ - $ - Section 3.2 Wood Floor Framed Structural System % 2 No $ - $ - Section 3.2 Vinyl Siding % 2 Yes $ 500 $ - Section 3.2 Field Experience Windows and Frames % 2 No $ - $ - Section 3.2 Exterior Stairs, Metal framed, concrete filled % 2 Yes $ - $ 43 Section 3.2 Field Experience Balconies, Handrails, Guardrails % 2 Yes $ - $ 43 Section 3.2 Field Experience Asphalt Shingle Roof % 2 Yes $ 500 $ 429 Section 3.2 National Estimator Building Exterior, Power wash Yes $ 1,000 $ - Section 3.2 Field Experience Cane Rails, Installation Yes $ 1,000 $ - Section 3.2 Field Experience MECHANICAL, ELECTRICAL & PLUMBING Heat Pumps NA 2 Yes $ - $ 320 Section 3.3 Property Historic Cost Domestic Water Distribution Individual Water Heaters FIRE/LIFE SAFETY % 2 No $ - $ - Section NA 2 Yes $ - $ 270 Section 3.3 Property Historic Cost Fire Suppression % 2 No $ - $ - Section 3.3 Fire Detectors NA 2 No $ - $ - Section 3.3 Fire Extinguisher NA 2 No $ - $ - Section 3.3 INTERIOR ELEMENTS Interior Carpets Vinyl Flooring Refrigerators Ranges Dishwashers NA 2 Yes $ - $ 1,050 Section NA 2 Yes $ - $ 108 Section NA 2 Yes $ - $ 420 Section NA 2 Yes $ - $ 300 Section NA 2 Yes $ - $ 240 Section 3.4 Property Historic Cost Property Historic Cost Property Historic Cost Property Historic Cost Property Historic Cost Down Unit, Repair Yes $ 5,000 $ - Section 3.4 Field Experience Mold and Water Repairs Yes $ 1,000 $ - Section 3.4 Field Experience TOTAL IMMEDIATES: $ 20,700 TOTAL RESERVES PER UNIT: $ 3,337 In completing the Property Useful Life Table for the Property, the Property Evaluator should note the following: EUL is the typical Estimated Useful Life for the specified system/component, as set forth on Appendix F to PNA Instructions Estimated Useful Life (EUL) Reference Table Eff Age is the Effective Age of the specified system or component based on the Property Evaluator s assessment of the condition of the system or component. RUL is the Remaining Useful Life of the specified system or component based on the EUL minus the Effective Age. RUL:EUL Ratio is the ratio of RUL for the specified system or component divided by the EUL for the specified system or component.

11 COST ESTIMATE SUMMARY AutumnRidge Memphis,Tennessee Immediate Repair Items Cost Reference Immediate Repairs: Life Safety Items (may impact health or safety) $ - See Table 2.3 Immediate Repairs: Critical Items (Recommend Completion within 6 months) $ 20,700 See Table 2.3 Immediate Repairs: Deferred Maintenance (Recommended Completion with 12 months) $ - See Table 2.3 Grand Total of Immediate Repairs $ 20,700 Replacement of Capital Items Cost Reference Replacement of Capital Items (Uninflated per unit) $ 278 See Table 2.4 Replacement of Capital Items (Inflated per unit) $ 335 See Table 2.4

12 Autumn Ridge Property Condition Assessment Page 12 Architectural Components No No 2.2 No No 2.2 No No 2.2 No No 2.2 Mechanical Electrical / Plumbing Systems No No 2.3 No No 2.3 No No 2.3 No No 2.3 No No 2.3 No No 2.3 No No 2.3 No No 2.3 No No 2.3 No No 2.3 No No 3.3 Yes Yes 2.3 No No 2.3 Dwelling Unit Components No No 2.4 Microbial growth At the time of our site visit, Unit was under repair for select areas of sheet rock and flooring damage. Management reported that a leak from the washing machine in the unit above caused the damage. In addition, CSI noted water staining and mold on the ceiling of Unit , water staining on the ceiling of Unit from a past minor leak, and mold build-up at bedroom windows in Unit an These repairs are included on the immediate repairs list. CSI also recommends the property continue the implementation of the in-place Moisture Management Plan.

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15 IMMEDIATE REPAIR ITEMS AutumnRidge Memphis,Tennessee Assessment Date(s): Age(s): Total Gross SF: Apartment Buildings: Stories: Dwelling Units: Parking Spaces: Interior Stairways/Hallways: Covered Common Breezeways: Roof Age: Roof Structure: November 21, , and Yes No 19 Pitched, composition shingle Life Safety: Items that may impact the health or safety of residents, employees or visitors Item Quantity Unit Unit Cost Total Cost Brief Description Section Reference None $ - $ - Subtotal: Life Safety $ - Critical Repair: Items recommended for completion within the next six months Item Quantity Unit Unit Cost Total Cost Brief Description Section Reference Pedestrian paving/hardscape 1 Allow $ 500 $ 500 Trip hazard at the southeast corner of Building Seal crack near 3929 Section 3.1 Asphaltic concrete 1 Allow $ 5,000 $ 5,000 Slurry seal and stripe parking. Repair asphalt near the leasing office and entry Section 3.1 Detention pond 1 Allow $ 200 $ 200 Remove and dispose of debris from the detention pond Section 3.1 Erosion 1 Allow $ 500 $ 500 Repair erosion at the NW corner of Building 3923 Section 3.1 Pool deck 1 Allow $ 5,000 $ 5,000 Repair cracking in the pool deck Section 3.1 Wood Fencing 1 Allow $ 500 $ 500 Repair the wood fence near the pool and dumpster enclosures Section 3.1 Down unit Allow $ 5,000 $ 5,000 Complete repairs Section 3.4 Mold / Water 1 Allow $ 1,000 $ 1,000 Repair water stains/mold at Units , & 104, and Section 3.4 Clubhouse roof 1 Allow $ 500 $ 500 Repair missing or damaged shingles on the leasing office/clubhouse roof Section 3.2 Trim repair 1 Allow $ 500 $ 500 Repair missing trim at Building 3929 and Section 3.2 Power wash 1 Allow $ 1,000 $ 1,000 Power wash buildings as needed including Building 3954 and 3907 Section 3.2 Cane rails 1 Allow $ 1,000 $ 1,000 Replace missing cane rails. Example Building 3944 Section 3.2 Subtotal: Critical Repairs $ 20,700 Deferred Maintenance: Non-recurring capital items typically recommended for completion within 12 months Item Quantity Unit Unit Cost Total Cost Brief Description Section Reference None Subtotal: Deferred Maintenance $ - Total Immediate Repairs $ 20,700 Notedrepairlocationsareforreferenceonlyandsimilarconditionsmaybepresentinotherlocations. Items of Note: Non-Life Safety, typically have an aggregate cost less than $3,000 ($1,000 or less for Small Mortgage Loans) and can be addressed by on-site staff. Item Brief Description ADA door levers Install lever door handles on the leasing office/clubhouse bathroom doors Section 5.3 Section Reference

16 REPLACEMENT REPAIR ITEMS Site Components Architectural Components Mechanical / Electrical / Plumbing Components Dwelling Unit Components Annual inflation 3.0% Cumulative Total Average Annual Cost Per Unit Per Year (uninflated) % % % % % % % % % % % % Average Annual Cost Per Unit Per Year (inflated)

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18 Autumn Ridge Property Condition Assessment Page 18 Regular One Contiguous acres Memphis Light, Gas and Water Memphis Light, Gas and Water Memphis Light, Gas and Water Memphis Light, Gas and Water Flat with a slight slope downward to the west Sheet flow to subsurface inlets Detention pond at west side of property Mature trees and shrubs with turf grass Controlled irrigation

19 Autumn Ridge Property Condition Assessment Page 19 Unknown, assumed CPVC None reported or observed Main entry to the property from Ridgeway Boulevard at the north side of the site Wood fence (small portion) near pool Monument Asphalt drive and parking area Cast in place concrete Concrete deck with metal fencing None present The subject is located in a mixed use area. Building and pole mounted fixtures Adequate, operational and effective Wood/chain link fences (not owned by subject) None present Dumpsters throughout site, wooden enclosures

20 Autumn Ridge Property Condition Assessment Page 20 SITE COMPONENTS - ISSUES OF NOTE OR CONCERN: Asphalt paving and drives Asphalt paved parking and drive areas are present throughout the site. The asphalt surfaces were in average condition with a large pot hole and deteriorated pavement noted near the clubhouse/leasing office and at the property entry drive. In addition to repairs in this area, CSI also recommends slurry seal and striping for all the asphalt paving. These have been included in the list of immediate repair Items. Limited wearing course repairs should be anticipated over the loan term. Funds for these anticipated repairs have been included in the capital reserve schedule. Pedestrian paving / hardscape Pedestrian walkways consist of cast in place concrete with a light broom finish. The pedestrian walkways were observed to be in varying condition and some past repairs were noted. CSI observed areas requiring immediate repair due to trip hazards or where sealing of cracked concrete is required and these locations are noted on the immediate repair list. Routine future repairs of the concrete surfaces should be anticipated over the loan term and are included in the reserve schedule. Trash enclosures Wooden solid waste enclosures are present at the subject property. A few broken boards were noted at the trash enclosures and this repair is included in the list of immediate repairs. Site fence Chain link and wood perimeter fences partially enclose the subject site but management indicated these fences belong to the adjoining sites. A small portion of wood fence is located on the subject property near the pool. Fencing in this location requires some repairs and is included in the immediate repair list. Landscaping Landscaping at the subject consists of turf grass, mature trees and shrubs. The landscaping is well developed and in good condition. CSI noted site erosion at the NW corner of Building 3923 and recommends replacement of eroded soil in this area and repair and extension of the downspout at the base of the building. Detention pond A detention pond is located on the west side of the property. Debris was noted in the pond and its removal is included in the list of immediate repairs. Property amenities One unheated pool is present at the subject. The maximum depth of the pool is four feet. The pool area is surrounded by a concrete deck and a metal fence. CSI recommends repairs to the cracking pool deck. This is included in the immediate repair list. The Property Manager stated that new compliant drains or related safety equipment have been installed and the property has met the Virginia Graeme Baker (VGB) Pool and Spa Safety Act requirements. Additional amenities include a fitness center, clubhouse, playground, barbecue areas and common laundry building with leased equipment. These areas were observed to be in good condition at the time of our site visit.

21 Autumn Ridge Property Condition Assessment Page apartment buildings Two and three-story buildings One (leasing office/clubhouse) None provided None provided 1997 construction date / 19 years old One phase Concrete slab on grade None present Wood framed Wood framed upper levels

22 Autumn Ridge Property Condition Assessment Page 22 Vinyl siding Pitched roof with composition shingles 6 years old (replaced in 2008 after storm damage) Gutters and downspouts Not present Wood framed, metal railing Concrete with vinyl enclosure Not present None present Exterior staircases present Wood framed stairs with wood treads and handrails Dual pane glass set in vertically sliding frames Aluminum assemblies, screens present Metal with glass

23 ARCHITECTURAL ISSUES OF NOTE OR CONCERN: Autumn Ridge Property Condition Assessment Page 23 Foundation Building plans were not reviewed at the time of our site inspection. However, based on CSI's field observations, the property's age and climate conditions for this part of the country, it appears the subject utilizes reinforced concrete slab-on-grade foundation systems. No issues of concern were visually identified with the building foundations. No structural problems were reported or observed. Building exterior The building exteriors consist of vinyl siding and soffits. The exteriors are in generally good condition, are low maintenance materials and will not require reserves over the loan term. CSI noted some areas of missing or damaged trim including the north side of Building 3953, east side of Building CSI also noted areas of algae build up on the siding that require power washing. Example locations include Buildings 3954 and These are immediate repair items. Roofing The subject buildings have sloped asphalt composition shingled roofs. The roofs were observed to be in average condition and no current roof leaks were reported or observed. No evidence of or problems with fire retardant treated (FRT) roof sheathing was observed during our assessment. Management provided insurance documentation indicating most if not all the roofs at the property had been replaced in 2008 following storm damage at the property. CSI has included reserves for partial roof replacement near the end of the loan term. CSI also noted some missing shingles on the roof of the leasing office/clubhouse and has included this in the immediate repair list. Windows & sliding doors Aluminum windows are present at the subject. The windows and sliding patio doors were in average condition. CSI noted mold build up at bedroom windows in Units and Unit The cost for these repairs have been included in the immediate repair schedule. CSI recommends management continue to implement its Moisture Management Program to address window mold build up. No significant replacement of windows or doors is anticipated over the term. Exterior staircases Upper level units are accessed via exterior staircases. The staircases are wood framed with wood treads. No issues of immediate concern were identified with staircases at the subject. CSI believes that limited repairs and replacements will be required over the loan term and we have included these costs in the reserve schedule. CSI noted cane rails at the some stairway locations where missing and has included the replacement in the list of immediate repairs. Balconies and patios Balconies are provided on all upper level units. Balconies are wood framed with metal railings and were observed to be in average condition at the time of our site visit. Patios are provided to ground floor units. Patios are concrete with vinyl enclosures and were also observed to be in average condition. Based on the age and observed condition of the balconies and patios, CSI anticipates that maintenance and repairs to the balconies and patios will be required, and we have included funds for these repairs in the reserve schedule. Common laundry One common laundry room, with leased equipment, is located at the leasing office/ clubhouse building. No issues of concern were observed.

24 Autumn Ridge Property Condition Assessment Page 24 CPVC supply lines No problematic materials were observed or reported Individual electric 40 gallon capacity Standard grade Memphis Light, Gas and Water PVC No problematic materials were observed or reported None present None present Memphis Light, Gas and Water Electric forced air Heat pumps Central air, pad mounted heat pumps None present None present

25 Autumn Ridge Property Condition Assessment Page 25 Present in kitchens and bathrooms Not present No policy in place Manual Copper branch wiring 125 amp service GFCIs present Units are individually metered Circuit breakers present Pad mounted Battery powered and hard wired Sprinklers present Hydrants on site None present Not present Fire extinguishers present Disposable with full charge Emergency lights present Carbon monoxide detectors not present None provided None provided No gate present None provided None provided

26 Autumn Ridge Property Condition Assessment Page 26 MECHANICAL / ELECTRICAL ISSUES OF NOTE OR CONCERN: Electrical No issues of concern were reported with electrical service at the subject. Service is provided via utility owned pad mounted transformers. The apartment units are individually metered with building mounted meter panels and main disconnects. Circuit breakers and GFCI outlets provide overload and safety protection. 125 amp service is provided to each unit. Branch wiring was observed to be copper. Heating The subject is heated by individual thermostatically controlled electric forced air heat pump systems. No issues of concern were identified. Air Conditioning Air conditioning is provided by heat pumps. Ongoing replacement of heat pump units should be anticipated over the loan term. Plumbing supply lines Plumbing supply lines within the walls were observed to be CPVC (at water heater connections, and reported by maintenance). Water staining and mold was noted on the ceiling of the Unit laundry room. Repair of this area is included in the immediate repairs list. Plumbing waste lines PVC waste and vent piping is present at the subject. reported or observed. No problems with the waste piping was Water heaters Domestic hot water is provided to the apartment units by individual 40 gallon electric water heaters. Ongoing replacement of water heaters is included as a reserve item. Fire Protection Fire protection at the subject consists of hard wired and battery smoke detectors, fully sprinklered buildings, hydrants and fire extinguishers on site, and emergency lighting. Management reported one tenant caused kitchen fire occurred at the subject approximately 4 years ago. Minor damage was repaired. No other fires were reported.

27 Autumn Ridge Property Condition Assessment Page 27 Carpet and tile Painted drywall Brushed metal, standard commercial grade Furniture in leasing area Standard commercial grade fixtures

28 Autumn Ridge Property Condition Assessment Page 28 DWELLING UNIT SUMMARY UNIT MIX TOTAL SQUARE FOOTAGE Two bedroom, two bath Three bedroom, two bath 48 1,128 TOTAL 140 units Down Units Reported 1 (Unit ) Vacant Units Reported 15 Vacant Units (90+ days) Reported 0 APARTMENT UNITS SURVEYED UNIT # UNIT # UNIT # DOWN OR VACANT UNITS SURVEYED Down Units Surveyed 1 down units 15 total vacant units Vacant Units Surveyed 0 units vacant longer than 90 days

29 Autumn Ridge Property Condition Assessment Page 29 Painted six panel metal, peephole & deadbolt assembly Sliding doors Not provided Not provided Mini blinds Painted drywall walls Painted drywall with textured "popcorn" ceiling Carpet in living areas and bedrooms Vinyl in kitchens and bathrooms Faux wood vinyl flooring None present Particle board with wood veneer Stainless steel single tub Provided Provided, electric four burner Provided Provided Not provided Not provided Hookups only Varied appliance models present

30 Autumn Ridge Property Condition Assessment Page 30 Particle board with wood veneer Drop-in Fiberglass surrounds Standard grade Provided Comcast Unknown DWELLING UNIT ISSUES OF NOTE OR CONCERN: Dwelling units We found the observed units to be in average to good condition. Turnover procedures appear adequate with appropriate minor repairs performed as needed by the maintenance staff. Unit was undergoing significant repair at the time of the CSI inspection and is considered a down unit. Select areas of sheetrock repair and flooring repair were in progress in Unit at the time of the site inspection. Management reported a leak from a washing machine in the unit above Unit caused the damage. CSI considers this to be a down unit, however management anticipated the repairs to the unit would be completed within two weeks of the inspection. Funds to restore the unit to rentable condition have been included in the immediate repair list. In addition, during CSI's inspection, evidence of water staining and mold was observed in some locations. Water staining was noted on the ceiling of Unit Management reported this was from a prior minor leak which had been repaired. Water staining and mold was also noted on the ceiling of the Unit laundry room. We also noted mold build up at bedroom windows in Units and Unit The cost for these repairs have been included in the immediate repair schedule. CSI recommends management continue the implementation of the in-place Moisture Management Program. Kitchen appliances Apartment units contain electric ranges/ovens, dishwashers, refrigerators, and garbage disposals. Appliances vary in age and condition and are reportedly replaced as needed. CSI recommends replacement of kitchen appliances as needed over the loan term, and reserves have been included for those replacements. All units contain washer and dryer hook ups but the property does not supply the laundry machines. Flooring Apartment units contain carpeting in living areas and bedrooms and sheet vinyl flooring in kitchens and bathrooms. Flooring appeared to be in fair to good overall condition. CSI recommends that carpeting and sheet vinyl be replaced as needed over the loan term. Reserves have been included for flooring replacements.

31 Autumn Ridge Property Condition Assessment Page 31 Appliance recalls Manufacturer recalls of appliances and other mechanical equipment unfortunately occurs with some regularity. These recalls often apply to kitchen appliances, such as Hotpoint & GE dishwashers. CSI's site inspection was limited in scope and we are unable to state whether every appliance (original or replaced) may be subject to recall. During the inspection CSI did not directly observe recalled appliances. We recommend that the subject property ensure that they have a recall monitoring program in place. Registration of equipment with the manufacturer is always recommended, and equipment vendors may also be able to assist. The Consumer Product Safety Commission is an excellent source for recall information. (

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33 Autumn Ridge Property Condition Assessment Page 33 Yes Yes Adequate Yes - continue implementation of in-place MMP Unit was under repair for select areas of sheet rock and flooring damage at the time of the inspection and management reported a leak from a washing machine in the unit above Unit caused the damage. CSI noted water staining and mold on the ceiling of Unit , water staining on the ceiling of Unit from a past minor leak and mold build up at bedroom windows in Unit an These repairs are included in the immediate repairs list of items. CSI also recommends the property continue the implementation of the in-place Moisture Management Plan. Otherwise, building components most commonly associated with potential water intrusion problems (including roofing, windows and plumbing) appeared to be properly maintained, with no evidence of current water intrusion or mold other than those listed above. Consulting Solutions did not observe evidence of active termite or other wood boring insect infestation at the subject. Management reported that Good Earth Pest Control provides routine pest control services at the subject weekly. They also reported they have a termite contract in place with James Pest Control but were not aware of termite problems at the property. Management reported a couple of previous bed bug instances but no current activity.

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35 Autumn Ridge Property Condition Assessment Page 35 Peak Ground Acceleration Pursuant to Fannie Mae Guidelines, any property located in a region with a 475-year probabilistic seismic hazard (associated with a 10% probability of exceedance in 50-years) of 0.15g or greater is subject to review for seismic risk factors that may require further seismic risk assessment reporting. The PGA for this subject (using the United States Geological Service data) is 0.12g, which is lower than the 0.15g threshold, therefore a seismic risk analysis is not required. Hazards / Geographic Conditions / Catastrophic Loss Potential With the exception of the high wind zone, the subject is not located in an area with a particular propensity toward any type of major geographic or catastrophic loss hazards. Flood Zone The subject is located in Flood Zone X which is an area outside of the 100- and 500-year floodplains. Wind Zone The subject is located in a Zone IV wind zone and is affected by 250 mph winds. The subject is not located in a hurricane susceptible region.

36 Autumn Ridge Property Condition Assessment Page 36 At the time of this report the information regarding open zoning code violations was pending, CSI will update this report when information is provided. At the time of this report the information regarding open building code violations was pending, CSI will update this report when information is provided. At the time of this report the information regarding open fire code violations was pending, CSI will update this report when information is provided. Records of agencies / persons contacted are included in the Appendix

37 Autumn Ridge Property Condition Assessment Page 37 Americans with Disabilities Act The Americans with Disabilities Act is a civil rights law intended to prevent discrimination against the disabled in public areas. The ADA applies to properties first occupied after January 26, 1993 and the Act mandates accessibility in places of public accommodation. As applied to multifamily properties, places of public accommodation include the leasing office. During the site inspection CSI conducted a Visual Accessibility Survey as outlined by ASTM E A Visual Accessibility Survey in intended to determine whether the subject has generally complied with the provisions of the ADA, including reference to the Americans with Disabilities Act Accessibility Guidelines (ADAAG) for specifications when appropriate. The survey is limited to observations of path of travel, parking, common area restrooms and elevators (if present). No measurements or counts are required for a Visual Accessibility Survey, and a Visual Accessibility Survey does not constitute a full accessibility audit. The subject property was constructed in 1997 and therefore the design provisions of the ADA apply. CSI noted that the leasing office is generally accessible, and accessible parking is available. CSI recommends the installation of lever door handles to the bathrooms at the clubhouse/leasing office and has included this on the immediate repairs list at no cost as an item of note. Otherwise, the subject appears to have complied with the provisions of the ADA. The Fair Housing Act The Fair Housing Act is a federal civil rights law that requires certain dwelling units in buildings with four or more units to be accessible and usable by persons with disabilities. The Fair Housing Act applies to all covered multifamily dwellings (all dwelling units in buildings with elevators or all ground floor units in non-elevator buildings) if the property was built for first occupancy on or after March 13, 1991 or the last building permit or renewal permit for the property was issued on or after June 15, If the property contains covered dwellings, the units must be designed and constructed in a manner that allows for: 1. Public and common use areas must be readily accessible to and usable by handicapped persons, 2. Doors and hallways into and within the covered dwellings must be sufficiently wide to allow passage by persons in wheelchairs, and 3. Covered dwellings must contain features of adaptable design. The subject property was constructed in 1997 and each building contains more than four units with no elevators. Accordingly, the provisions of the Fair Housing Act apply to all ground floor units. Management stated that there are three accessible units at the subject. CSI did not perform an exhaustive accessibility survey of the subject but a visual observation of the ground floor units and common areas indicates that the subject has incorporated design features consistent with the Fair Housing Act. Energy Benchmarking The subject is not located in a municipality that requires energy benchmarking.

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39 Autumn Ridge Property Condition Assessment Page KNOWN PROBLEMATIC MATERIALS No problematic materials such as fire retardant treated plywood (FRTP), compressed wood or composite board siding, exterior insulation finish systems (EIFS), Chinese drywall, aluminum wiring, fused subpanels, ABS sanitary lines, polybutylene water distribution lines, galvanized steel water distribution lines, Omega or Central brand fire sprinkler heads, Cadet brand electric in wall heaters, or any appliances recalled by the Consumer Product Safety Commission were observed at the subject. 6.2 SUMMARY OF HISTORICAL REPAIRS AND REPLACEMENTS Management provided insurance documentation indicating that most, if not all, the roofs at the property had been replaced in 2008 following storm damage at the property. We have included the provided documents in the Appendix. No other historical repair or replacement history was provided. 6.3 WORK IN PROGRESS Select areas of sheet rock repair and flooring repair were in progress in Unit at the time of our site inspection. Management reported that a leak from a washing machine in the unit above caused the damage. CSI considers this to be a down unit, however, management anticipated the repairs to the unit would be completed within two weeks of the inspection. No other work was in progress at the time of our site visit. 6.4 PLANNED CAPITAL IMPROVEMENTS Management reported planned capital improvements to the asphalt driveways but did not provide a cost estimate or scope of work.

40 Autumn Ridge Property Condition Assessment Page 40 MODULE: No Fannie Mae modules are required for this property.

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42 Autumn Ridge Property Condition Assessment Page 42 This PCA Report was prepared in accordance with Fannie Mae Guidelines and Fannie Mae Form 4099 Instructions for the Property Evaluator (Version 2.1, 2016). Other references or sources of information may include: Basic Property Information Provided By Client Property Owner Pre-Site Visit Questionnaire For Property Condition Assessment Property Management and Maintenance Interview National Estimator Pricing Data Memphis Building Department Memphis Fire Department Google Maps Property Website

43 Autumn Ridge Property Condition Assessment Page 43 The Property Condition Assessment ( PCA ) is an underwriting tool that provides information necessary for the Lender and Fannie Mae to assess the overall physical condition and risk of a multifamily property securing a mortgage loan to be financed by the Lender and purchased by Fannie Mae. The PCA provides: An assessment of the property s current physical condition; An estimate of the effective age and remaining useful life for each of the property s systems and components; An evaluation of past and current operating and maintenance practices at the property and suggestions for future operating and maintenance practices, and An identification of current and future physical needs, including all significant capital replacement costs and maintenance costs required at the property during the mortgage loan term. The goal of the Property Condition Assessment (PCA) is to identify and communicate physical deficiencies to the report user. The term physical deficiencies means the presence of conspicuous defects or material deferred maintenance of a subject property s material systems, components, or equipment as observed during the field observer s walkthrough survey. This definition specifically excludes deficiencies that may be remedied with routine maintenance, miscellaneous minor repairs, normal operating maintenance, etc. and excludes de minimis conditions that generally do not present material physical deficiencies of the subject property. The PCA incorporates a review of reasonably available documentation, interviews with the property owner or representative, inquiry with local officials, and a walk through survey of the subject property. The findings of the investigation are presented in a written report which includes opinions of probable costs to remedy physical deficiencies. This PCA was conducted so as to satisfy the Fannie Mae guidelines. Because the site survey consists of a representative sampling of dwelling units and other areas, it is assumed that conditions observed in the sample group are representative of the property as a whole. If, for example, in surveying 10% of the dwelling units it is observed that all of the dishwashers are inoperable, it is assumed that this condition exists throughout the subject in all units. Quantities used for cost estimating purposes are based on field observation. Specific cost information provided by on-site management is used when possible; otherwise sources such as Means, National Estimator or other industry resources are used. The Property Condition Assessment addresses infrequently occurring big ticket maintenance items, such as exterior painting, roof replacement, all deferred maintenance, and repairs or replacements which normally involve significant expense or outside contracting.

44 Autumn Ridge Property Condition Assessment Page 44 This assessment report is based on Consulting Solutions limited site investigation, and incorporates assumptions regarding the condition of the entire property based on a review of representative common areas, living units and other site features. The assessment is based on Consulting Solutions visual survey of representative areas and information provided to Consulting Solutions during the assessment process by property management, maintenance staff and other outside parties. This assessment and the resulting report have been prepared consistent with the scope of work set forth by Fannie Mae and ASTM E2018. Any survey, investigation or testing performed has been conducted or completed pursuant to this scope of work and is not intended to meet any other regulatory guidelines. Consulting Solutions cannot guarantee that information provided is accurate, and cannot be held responsible for provided information which was incorrect or undisclosed. Consulting Solutions assessment does not include verification of all provided information. The Property Condition Assessment Report is based solely on visual observations, and does not include destructive or invasive testing. This report does not constitute a structural engineering assessment, complete roofing inspection, electrical inspection, plumbing inspection, termite inspection, accessibility audit, or other detailed specific investigation. In some cases, further investigation and / or repairs or replacements are recommended as a result of our limited site survey findings. Whenever repairs or replacements are recommended, and particularly when repairs are related to structural, electrical or plumbing components, the property owner or manager should engage a qualified and licensed contractor to perform the recommended repairs and to confirm that conditions in specific locations are consistent with the reported and observed sample of conditions existing at the time our limited site survey. No representation is made herein regarding the status of title, legality of lots or zoning of the subject, nor is any representation made as to the advisability of the purchase, financing, or investment of the subject site. For purposes of this assessment it is assumed that the property and improvements meet local, state and federal building codes and requirements in place at the time of construction. This assessment does not include an exhaustive review of architectural plans, construction documents, construction budgets and other documents that may be used to verify or confirm code compliance. Cost estimates in this report are based on industry averages and Consulting Solutions cannot guarantee that actual costs will not vary from estimates presented in this report. This report is prepared solely for the use of Jones Lang LaSalle Multifamily, LLC in accordance with Fannie Mae Guidelines. Consulting Solutions services are performed in accordance with established industry standards, in accordance with customary principles and practices. This warranty is in lieu of all other warranties, expressed or implied. This report is for the use and benefit of, and may be relied upon by Jones Lang LaSalle Multifamily, LLC and Fannie Mae, with respect to any debt (or portion thereof) and/or securities secured, directly or indirectly, by the Property which is the subject of this report: any placement agent or broker/dealer and any of their respective affiliates, agents and advisors; any initial purchaser or subsequent holder of such debt and/or securities; any Servicer or other agent acting on behalf of the holders of such debt and/or securities; any indenture trustee; any rating agency; any institutional provider from time to time of any liquidity facility or credit support for such financings; and each of the foregoing parties' respective successors and assigns.

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78 Interview questions prior to inspection Consulting Solutions Inc. Page1 PROPERTY MANAGEMENT INTERVIEW QUESTIONS PRIOR TO INSPECTION Property Name: Autumn Ridge Apartments Property Address: 3888 Autumn Ridge Drive, Memphis, TN Name of individual filling out this form: J.C. Boswell Inspection date: November 21, 2016 Thank you for your cooperation with our upcoming visit to your property. Please complete this form and return it to (or by fax at ) prior to the inspection date listed above. If we do not receive this prior to inspection, please have the following information available (as applicable) for our inspector at the time of the site visit. Contact us at (847) if you have any questions. Name and phone number Years at this position Property Manager Kristina Dean 4 months Maintenance Manager Position Open GENERAL INFORMATION Subject Property Name Address Parcel number(s): Construction Date Acreage Gross Square Footage Number of Buildings- Residential Number of Buildings- Non-residential Property Owner Are there any bodies of water on the site? If yes, describe Autumn Ridge Apartments 3888 Autumn Ridge Drive, Memphis, TN (6001 Ridgeway Road) on Tax Record , Autumn Ridge, LP No

79 Interview questions prior to inspection Consulting Solutions Inc. Page2 PRIOR USE OF THE SUBJECT PROPERTY Has the subject site ever been occupied by the following: Dry Cleaner Gas Station Printing Facility Manufacturing Facility Industrial Use If yes, provide length of occupancy: NO Have any previous investigations been performed at the subject property? Yes No If Yes, are copies available? Yes If Yes, note type and describe: Phase I ESA Phase II Asbestos Lead Paint Radon ON-SITE ENVIRONMENTAL CONDITIONS Are you aware of any of the following environmental conditions, either current or former, on the subject site? NOTE: If applicable, please provide inventory records, inspection records and material safety data sheets to site inspector during site inspection. Environmental Condition/Issue Aboveground Storage Tanks Underground Storage Tanks Hazardous/Toxic Substances Response Yes No Yes No Yes No Notes on Yes Responses Stored Chemicals Yes No Chemical Spills/Releases Yes No Dump Areas/Landfills Yes No Waste Treatment Systems Yes No Wastewater Discharges Yes No Floor Drains/Sumps/Clarifiers Yes No

80 Interview questions prior to inspection Consulting Solutions Inc. Page3 ON-SITE ENVIRONMENTAL CONDITIONS CONTINUED Are you aware of any of the following environmental conditions, either current or former, on the subject site? Environmental Condition/Issue Response Notes on Yes Responses Pits, Ponds, Lagoons Yes No Standard rain water retention pond Stained Soil/Vegetation Yes No Pesticide/Herbicide Use Yes No Polychlorinated Biphenyls Yes No (PCBs) Electrical Transformers Yes No Hydraulic Lifts Yes No Elevators Yes No Asbestos Yes No Lead-based paint Yes No Oil/Gas Wells Yes No Environmental Clean-ups Yes No Environmental Permits Yes No OTHER ENVIRONMENTAL CONDITIONS Are you aware of any environmental liens recorded against the property? Yes No Are you aware of any pending, past or threatened litigation related to hazardous substances or petroleum products releases at the property? Yes No Are you aware of any cases of extreme water damage or mold throughout the building(s)? Yes No If yes, provide brief explanation. Any history of bed bugs? Occasional and immediately addressed / remediated Any history of Termites or other wood destroying insects, including treatment plans? No

81 Interview questions prior to inspection Consulting Solutions Inc. Page4 Previous Reports and / or previous Operations and Maintenance Programs: Asbestos O&M Yes No Lead O&M Yes No Moisture Management Plan Yes No Engineering Report(s): Yes No Environmental Report(s): Yes No Unit Mix information Unit Type Approximate Size (FT 2 ) Total Occupied Total Vacant Total Down Grand Total 2 bedroom / 2 bath bedroom / 2 bath 1, TOTAL UNITS Total number of ground floor units: 48 Down Units: Yes No If yes how many: List unit that is down and reason for being down: Vacants: Yes No If yes how many: 15 Models: Yes No American with Disability (ADA) On site leasing office? Yes No If yes, is bathroom accessible? : Yes No Any amenities open to the public? : Yes No if yes, describe Common areas accessible? : Yes No Pool have handicap lift? : Yes No ADA Parking available? Yes No ADA car spaces ADA van spaces (with 96 striped area) Each stall have a sign? Yes No Fair Housing Act (FHA) Accessibility: Any Units currently accessible? Yes No If yes, how many: Any units adaptable (ready for modifications to make them accessible) Yes No Describe accessibility modifications:

82 Interview questions prior to inspection Consulting Solutions Inc. Page5 Any accessibility or disability related lawsuits? NO Parking information Type # of Spaces Open Garage 0 Carport 0 Total Recent or current major renovations: List Renovations: When renovation took place: Additional information: Roof replacement information (age of roofs): Planned Renovations: (include copies of bids, if any) Mechanical: Polybutylene Plumbing Are you aware of polybutylene plumbing lines at the subject: Yes No Branch Wiring: Are you aware of aluminum branch wiring in the individual units: Yes No Appliance brands: How are recalls tracked? Thank you for your cooperation with our upcoming visit to your property. Please complete this form and return it to csi@consultingsolutionsinc.com (or by fax at ) prior to the inspection date listed above. If we do not receive this prior to inspection, please have the following information available (as applicable) for our inspector at the time of the site visit. Contact us at (847) if you have any questions.

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84 The subject property is not located in an area where energy benchmarking information is available.

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86 JONES LANG LASALLE MULTIFAMILY, LLC Checklist for Boiler and Machinery Equipment (HVAC, hot water heaters, boilers, etc.) Autumn Ridge Apartments 3888 Autumn Ridge Drive Memphis, TN Describe what kind(s) of system(s) are used at the subject property: Centralized Boiler Low Pressure Steam Centralized Boiler Low Pressure Hot Water Centralized Boiler High Pressure Steam Centralized Boiler High Pressure Hot Water Central commercial water heaters If the subject property uses centralized boilers, please answer the following items: (a) What is the pressure rating, in pounds per square inch (psi), for each unit? N/A Make, model, year, manufacturer s name and size of HVAC equipment: Electric forced air heat pump system and Pad Mounted Heat Pumps. Ages vary. 40 gallon electric water heaters. Magic Paks Rooftop Packaged Air Units Through-Wall Units Electric Wall Heaters Water Heaters 40 gallon electric Gas-Forced Air City Steam Other: Electric force air heat pump system and Pad Mounted Heat Pumps. Ages vary To be made and become a part of all physical needs assessment reports and, if applicable, on the arch/cost review on HUD new construction transactions.

87 PROJECT NAME: ADDRESS: PROJECT # Autumn Ridge 3904 Autumn Ridge Memphis, Tennessee CSI contacted the Memphis Code Enforcement Department and spoke with a representative who confirmed there are currently no open building code violations at the subject property. (901)

88 PROJECT NAME: ADDRESS: PROJECT # Autumn Ridge 3904 Autumn Ridge Memphis, Tennessee CSI sent a FOIA request to the City of Memphis Division of Fire Services Fire Prevention Bureau for information related to open fire code violations at the subject property. Patricia Alston (Fire Prevention Bureau Secretary) responded via and confirmed there are no open fire code violations at the subject property. fire.prevention@memphistn.gov

89 Cityof Memphis FIRE PREVENTION BUREAU TENNESSEE JIM STRICKLAND MAYOR DIVISION OF FIRE SERVICES November 14, 2016 Consulting solutions Inc. 401 Michigan Avenue, Ste Chicago, Illinois ATT: Olivia Seagraves Re: 3904 Autumn Ridge Court Sir/Madam: Our research of your request regarding outstanding fire code violation, for the above addresses 3904 Autumn, that we have no files for this location and NO outstanding violations. We show no records of hazardous storage, spill, releases, and underground/aboveground tanks in our office. If you need information about fire reports please call , for a quick research please all inquiries to us at fire.prevention@memphistn.gov. Also, please be advised that the following fee schedule is applied for purchases of inspections, 1 st page $10.00 each additional page-$1.00. Certified funds or money order must be made payable to City Of Memphis, prior to release of records. If this inspection is regarding hazardous materials for a property, you may contact the SORT office at Fire Training at I hope that this response adequately addresses your request. If there are any further questions, please contact our office at Respectfully, City of Memphis-Division of Fire Service Patricia Alston, Office Assistant Fire Prevention Bureau 2668 Avery Avenue Memphis, Tennessee (901) Fax (901)

90 PROJECT NAME: ADDRESS: PROJECT # Autumn Ridge 3904 Autumn Ridge Memphis, Tennessee CSI contacted the Memphis Code Enforcement Department and spoke with a representative who confirmed there are currently no open building code violations at the subject property. (901) The subject is zoned RU-3.

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100 Page 1 of 1 FloodInsights Report For: 3904 AUTUMN RIDGE CT, MEMPHIS,TN Geocoding Accuracy: S5 (Very Accurate) - single valid address match, point located at an interpolated position along street line segment Original Input Address: 3904 AUTUMN RIDGE CT, MEMPHIS,TN Flood Zone Determinations (Non-Guaranteed) SFHA Within 250 feet of multiple flood zones? Out No Map Number 47157C0465F Community Community_Name Zone Panel Panel_Dte COBRA MEMPHIS, CITY OF X 0465F September 28, 2007 COBRA_OUT FIPS CensusTract This Report is for the sole benefit of the Customer that ordered and paid for the Report and is based on the property information provided by that Customer. That Customer's use of this Report is subject to the terms agreed to by that Customer when accessing this product. No third party is authorized to use or rely on this Report for any purpose. THE SELLER OF THIS REPORT MAKES NO REPRESENTATIONS OR WARRANTIES TO ANY PARTY CONCERNING THE CONTENT, ACCURACY OR COMPLETENESS OF THIS REPORT, INCLUDING ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. The seller of this Report shall not have any liability to any third party for any use or misuse of this Report. 11/10/16