Glen Hollow Apartments

Glen Hollow Apartments www.franklinst.com 1554 Lake Avenue, Tallahassee, Florida 32310 www.franklinst.com

FRANKLIN STREET CONFIDENTIALITY AGREEMENT This is a confidential Memorandum intended solely for your limited use and benefit in determining whether you desire to express further interest into the acquisition of the Subject Property. This Memorandum contains selected information pertaining to the Property and does not purport to be a representation of state of affairs of the Owner or the Property, to be all-inclusive or to contain all or part of the information which prospective investors may require to evaluate a purchase of real property. All financial projections and information are provided for general reference purposes only and are based on assumptions relating to the general economy, market conditions, competition, and other factors beyond the control of the Owner or Real Estate Services, LLC. Therefore, all projections, assumptions, and other information provided and made herein are subject to material variation. All references to acreages, square footages, and other measurements are approximations. Additional information and an opportunity to inspect the Property will be made available to all interested and qualified prospective purchasers. Neither the Owner or Real Estate Services, LLC., nor any of their respective directors, officers, affiliates or representatives are making any representation or warranty, expressed or implied, as to the accuracy or completeness of this Memorandum or any of its contents, and no legal commitment or obligation shall arise by reason of your receipt of this Memorandum or use of its contents; and you are to rely solely on your own investigations and inspections of the Property in evaluating a possible purchase of the real property. The Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase Property, and/or to terminate discussions with any entity at any time with or without notice which may arise as a result of review of this Memorandum. The Owner shall have no legal commitment or obligation to any entity reviewing this Memorandum or making an offer to purchase the Property unless and until written agreement(s) for the purchase of the Property have been fully executed, delivered, and approved by the Owner and any obligations therein have been satisfied or waived. By receipt of the Memorandum, you agree that this Memorandum and its contents are of a confidential nature, that you will hold and treat it in the strictest confidence and that you will not disclose this Memorandum or any of its contents to any other entity without the prior written authorization of the Owner or the Franklin Street Real Estate Services, LLC. Furthermore, you agree not to use this Memorandum or any of its contents in a manner detrimental to the interest of the Owner or Real Estate Services, LLC. In this Memorandum, certain documents, including leases and other materials, are described in summary form. These summaries do not purport to be complete nor necessarily accurate descriptions of the full agreements referenced. Interested parties are so advised and expected to review all such summaries and other documents of whatever nature independently and not to rely on the contents of this Memorandum in any manner. ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR FRANKLIN STREET REAL ESTATE SERVICES, LLC AGENT FOR MORE DETAILS. 2 Jim Reed Director, Multifamily Investment Sales Jim.Reed@FranklinSt.com 904.899.0310

TABLE OF CONTENTS Investment Summary 4 Area Overview 6 Financial Overview 10 Comparables 14 About 22 3

Investment Summary Area Overview Financial Overview Comparables About INVESTMENT HIGHTLIGHTS Value Add Opportunity New Roof With 30 Year Transferrable Warranty Below Market Rents Provide Significant Upside Potential One Bedroom Units Are Ideal For The Area Demographics High Demand For Section 8 Units In This Market Location is Less Than One Mile From Florida State University and Florida A&M University PROPERTY DESCRIPTION Located Less Than 1/2 Mile From Innovation Park and FAMU-FSU College of Engineering Located in The Path Of Progress in Tallhassee s Blueprint 2000 Initiative and FAMU Way Street Renovation is pleased to offer an outstanding opportunity to purchase a stabilized multifamily asset with value add potential in Tallahassee, Florida. Glen Hollow is a three-story wood frame apartment building with 48 one-bedroom units of approximately 450 square feet each. The units feature a spacious kitchen with dining area and walk-in closets. Work is currently underway to install a new roof with 30-year warranty, which will be completed prior to closing. In addition, the building has recently been painted and all exterior components are in excellent condition. Within this submarket, rents for one-bedroom units are $450 per month, compared to effective rents at Glen Hollow now averaging $350 per month, representing significant potential upside for the investor. The property is in a quiet and safe residential neighborhood located less than a mile from the campus of Florida A&M University and less than a mile from the Florida State University campus. Less than ½ mile from the subject is the FAMU-FSU College of Engineering, which is in Innovation Park, the home of many high-tech companies and university affiliated enterprises, employing over 1,900 people.

Investment Summary Area Overview Financial Overview Comparables About PRICING SUMMARY LIST PRICE Price: $1,200,000 Price Per Unit: $25,000 Price Per Sq Ft: $55.56 Current Occupancy: 90.00% LOCATION & PARCEL DETAIL Address: 1554 Lake Avenue City, State ZIP: Tallahassee, FL 32310 County: Leon Parcel/Folio: 41-02-30-00O-008.4 Submarket: Providence Walk Score R : Car Dependent (21) Asking Price $1,699,000 Price Per Unit $53,094 Price Per Sq Ft $51.80 SITE DETAIL CONSTRUCTION DETAIL PARKING DETAIL No. of Units: 48 Units Framing: Wood Frame Paving: Asphalt No. of Buildings: 1 Buildings Exterior Wall: Composite Siding Parking Spaces: 48 Parking Spaces No. of Stories: 3 Stories Roof Structure: Wood Truss-Gable Spaces per Unit: 1.00 Year Built: 1974 Roof Cover: Composite Shingle Rentable Sq Feet: 21,600 HVAC: Wall Units Lot Size: 0.84 Acres 5

Investment Overview Area Area Overview Financial Overview Comparables About REGIONAL MAP Atlantic Blvd. Beach Blvd. 6

Investment Overview Area Area Overview Financial Overview Comparables About NEIGHBORHOOD MAP Florida State University Doak Stadium Florida A & M University Innovation Park Glen Hollow Apartments FAMU Stadium 7

Investment Overview Area Area Overview Financial Overview Comparables About ABOUT TALLAHASSEE 1554 LAKE AVENUE - DEMOGRAPHICS Median Home Price $175,000 UNEMPLOYMENT RATES Median Household Income $47,767 United States 4.9% Median Age 30.3 Florida 4.8% Tallahassee MSA Population 375,270 Tallahassee MSA 4.8% Tallahassee, Florida s capital, is home to Florida State University, Florida A&M University, and Tallahassee Community College with a total student population of more than 65,000 POPULATION 1 Mile 3 Mile 5 Mile Estimated Population (2016) 10,620 86,931 154,339 Projected Population (2021) 11,144 89,927 160,171 Census Population (2010) 9,167 81,267 144,453 Census Population (2000) 8,988 71,942 128,578 HOUSEHOLDS Estimated Households (2016) 5,071 34,755 66,312 Projected Households (2021) 5,407 36,780 70,183 Census Households (2010) 4,204 30,972 59,555 Census Households (2000) 4,224 28,620 54,587 INCOME Estimated Per Capita Income $12,515 $14,455 $20,439 Estimated Median Household Income $21,424 $27,673 $37,603 Estimate Average Household Income $26,005 $34,634 $46,757 8

Investment Overview Area Area Overview Financial Overview Comparables About SITE AERIAL 9

Investment Overview Area Overview Investment Financial Overview Comparables About UNIT MIX Current Pro Forma Units Unit Type Approx Sq Feet Current Rent Rent/Sq Foot Rent Rent/Sq Ft Rent Increase 48 1Bdr 1Bath 450 $400 $0.8549 $450 $1.00 12.50% *Asking rents are $400 per month. Effective rents are currently $325-350 per month / $0.78 per Sq Foot. The difference is reflected in Loss to Lease. *There are currently 8 units not producing revenue. 1Bdr 1Bath, 100.00% Investment Overview Current Potential Monthly Gross Rent $19,200 Pro Forma Monthly Gross Potential Rent $21,600 Current Annual Gross Potential Rent $230,400 Pro Forma Annual Gross Potential Rent $259,200 10

Investment Overview Area Overview Investment Overview Comparables About Financial Overview 11

Investment Overview Area Overview Investment Financial Overview Comparables About INCOME & EXPENSES CURRENT / T-6 ANNUALIZED AQUISTITION / YEAR ONE PRO FORMA INCOME PER UNIT TOTAL PER UNIT TOTAL PER UNIT TOTAL Gross Potential Rent (GPR) $4,800 $230,400 $4,800 $230,400 $5,400 $259,200 Utility Recovery $0 $0 $0 $0 $300 $14,400 Total Other Income $0 $0 $0 $0 $300 $14,400 Gross Potential Income (GPI) $4,800 $230,400 $4,800 $230,400 $5,700 $273,600 ECONOMIC LOSS Vacancy (-) $480 $23,040 $192 $9,216 $216 $10,368 Loss to Lease (-) $596 $28,620 $233 $11,200 $108 $5,184 Bad Debt (-) $33 $1,580 $48 $2,304 $54 $2,592 Model Units (-) $0 $0 $0 $0 $0 $0 Staff Units (-) $100 $4,800 $100 $4,800 $0 $0 Office Units $100 Investment $4,800 Overview $100 $4,800 $0 $0 Storage Unit $100 $4,800 $100 $4,800 $0 $0 Total Economic Loss -$1,409 -$67,640 -$773 -$37,120 -$378 -$18,144 Effective Gross Income (EGI) $3,391 $162,760 $4,027 $193,280 $5,322 $255,456 2017 Taxable Value $718,429 2017 Millage Rate 19.5227 Pro Forma Taxable Value $960,000 Non-Ad Valorem Taxes $0 12

Investment Overview Area Overview Investment Overview Comparables About Financial Overview INCOME & EXPENSES CURRENT / T-6 ANNUALIZED AQUISTITION / YEAR ONE PRO FORMA EXPENSES PER UNIT TOTAL PER UNIT TOTAL PER UNIT TOTAL Taxes (1) $271 $12,996 $375 $17,992 $375 $17,992 Insurance $236 $11,340 $276 $13,250 $276 $13,250 Utilities (2) $379 $18,202 $387 $18,566 $396 $19,000 Repairs & Maintenance (3) $114 $5,466 $400 $19,200 $400 $19,200 Landscape Maintenance $0 $0 $50 $2,400 $50 $2,400 Management Fees (4) $0 $0 $346 $16,614 $457 $21,959 Salaries & Wages $542 $26,000 $0 $0 $0 $0 General & Administrative $17 $800 $17 $800 $21 $1,000 Contract Services $69 $3,324 $69 $3,324 $69 $3,324 Total Expenses $1,628 $78,128 $1,920 $92,146 $2,044 $98,125 Net Operating Income (NOI) $1,763 $84,632 $2,107 $101,134 $3,278 $157,331 (1) Pro Forma Taxes are based on 80% of List Price x 2016 Millage Rate (2) Utilites include trash hauling by City (3) Includes materials only; maintenance labor included in Salaries & Wages (4) Contract Services = dumpster rental PRELIMINARY FINANCING QUOTE Type Fixed Rate, Community Bank Loan Amount 60% LTV Term 5 years Interest Rate 4.75% - 5.00% Amortization 25 Years DSCR 1.25 minimum Recourse Full Reserves TBD Current rates and terms are based on market conditions as of June 1, 2017. For additional details or questions, please contact the FSCA professional listed to the right. *This is not a binding quote. Terms and conditions are subject to change due to fluctuations in capital markets, realestate markets, and the strength of the guarantor. FOR FINANCING QUOTE INFORMATION CONTACT Ben Miller Phone: (813) 839-7300 ext. 369 Email: Ben.Miller@FranklinSt.com Casey Siggins Phone: (813) 839-7300 ext. 385 Email: Casey.Siggins@FranklinSt.com 13

Investment Overview Area Overview Financial Overview Comparables About RENT COMPARABLES Glen Hollow Apartments 1554 Lake Ave. Tallahassee, FL 32310 Occupancy: 88% Year Built: 1974 Total Units: 48 Unit Type # of Units Avg SF Rent Rent/SF 1Bdr 1Bath 48 450 $400 $0.89 Total/Avg 48 450 $400 $0.89 *Effective rents are $325-$350 per month / $0.78 per SF Utilities included in rent 1 Alpine Apartments 1517 Levy Ave. Tallahassee, FL 32310 Occupancy: 76% Year Built: 1967 Total Units: 80 Unit Type # of Units Avg SF Rent Rent/SF 1Bdr 1Bath 80 700 $440 $0.63 Total/Avg 80 700 $440 $0.63 *Utilities included in rent 2 The Oaks 1619 Lake Ave. Tallahassee, FL 32310 Occupancy: 65% Year Built: 1971 Total Units: 71 Unit Type # of Units Avg SF Rent Rent/SF 1Bdr 1Bath 71 500 $500 $1.00 Total/Avg 71 500 $500 $1.00 *Rent includes an additional $50 per month for water & sewer 14

Investment Overview Area Overview Financial Overview Comparables About RENT COMPARABLES 3 Ashton Glen 1616 McCaskill Ave. Tallahassee, FL 32310 Occupancy: 65% Year Built: 1972 Total Units: 95 Unit Type # of Units Avg SF Rent Rent/SF 1Bdr 1Bath 63 600 $500 $0.83 2Bdr 1Bath 32 900 $625 $0.69 Total/Avg 95 701 $542 $0.77 *Rent includes an additional $50 per month for water & sewer 4 Providence Pointe 1242 Stuckey Ave. Tallahassee, FL 32310 Occupancy: 90% Year Built: 1974 Total Units: 48 Unit Type # of Units Avg SF Rent Rent/SF 1Bdr 1Bath 48 540 $475 $0.88 Total/Avg 48 540 $475 $0.88 *Water and sewer included in rent 5 Harmony Crossing 1698 Stuckey Ave. Tallahassee, FL 32310 Occupancy: 90% Year Built: 1974 Total Units: 30 Unit Type # of Units Avg SF Rent Rent/SF 1Bdr 1Bath 20 600 $494 $0.82 2Bdr 1Bath 10 750 $595 $0.79 Total/Avg 30 650 $528 $0.81 *Water and sewer included in rent. 6 Lake Lodge Occupancy: 89% Unit Type # of Units Avg SF Rent Rent/SF 1320 Lake Ave. Year Built: 1989 Tallahassee, FL 32310 1Bdr 1Bath 55 450 $392 $0.87 Total Units: 89 Total/Avg 55 450 $392 $0.87 *Water and sewer included in rent. 15

Investment Overview Area Overview Financial Overview Comparables About Occupancy Rates Rates Average Unit Size Size Unit 100.00% 90.00% 80.00% 70.00% 60.00% 50.00% 81.54% 800 700 600 500 400 570 40.00% 30.00% 20.00% 10.00% 300 200 100 0.00% 0 Average Asking Rent Rent Rent per Square Foot Foot $600 $500 $400 $300 $200 $100 $0 $468 $1.00 $0.90 $0.84 $0.80 $0.70 $0.60 $0.50 $0.40 $0.30 $0.20 $0.10 $0.00 16

Investment Overview Area Overview Financial Overview Comparables About RENT COMPARABLES MAP 5. Venetia Plaza 17

Investment Overview Area Overview Financial Overview Comparables About SALE COMPARABLES 1 2 Glen Hollow Apartments 1554 Lake Ave. Tallahassee, FL 32310 Park Avenue Apartments 638 E. Park Ave. Tallahassee, FL 32301 Alpine Apartments 1517 Levy Ave. Tallahassee, FL 32310 Details Unit type # Units Sale date On Market 1Bdr 1Bath 48 Total units 48 Sale price $1,200,000 Price Per Unit $25,000 Price Per SF $55.56 Year Built 1974 Details Unit type # Units Sale date June-17 1Bdr 1Bath 48 Total units 48 Sale price $1,200,000 Price Per Unit $25,000 Price Per SF $58.82 Year Built 1950 Details Unit type # Units Sale date April-17 1Bdr 1Bath 80 Total units 80 Sale price $1,575,000 Price Per Unit $19,688 Price Per SF $28.10 Year Built 1967 Auction sale; short sale; 76% occupancy at time of sale. 18

Investment Overview Area Overview Financial Overview Comparables About SALE COMPARABLES 3 4 5 Palm Beach Apartments 503 Palm Beach St. Tallahassee, FL 32310 1607 McCaskill & Bali Club Apts 1607 McCaskill Ave Tallahassee, FL 32310 Ashton Glen & The Oaks Apartments 1616 McCaskill Ave. Tallahassee, FL 32310 Details Unit type # Units Sale date September-16 1Bdr 1Bath 37 Total units 53 2Bdr 1Bath 16 Sale price $1,180,000 Price Per Unit $22,264 Price Per SF $42.37 Year Built 1970/2004 Details Unit type # Units Sale date On Market 1Bdr 1Bath 14 Total units 28 2Bdr 1Bath 14 Sale price $1,150,000 Price Per Unit $41,071 Price Per SF $43.27 Year Built 1969 Details Unit type # Units Sale date On Market 1Bdr 1Bath (Ashton) 63 Total units 166 2Bdr 1Bath (Ashton) 32 Sale price Market Price 1Bdr 1Bath (The Oaks) 71 Price Per Unit Price Per SF N/A N/A Year Built 1971 & 1972 *65% occupancy; some renovations have been completed Likely to sell at $25,000 per unit 19

Investment Overview Area Overview Financial Overview Comparables About SALE COMPARABLES Price Per Square Foot Price Per Square Foot Price Price Per Per Unit $60.00 $50.00 $40.00 $30.00 $20.00 $10.00 $0.00 $45,000 $40,000 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $0 20

Investment Overview Area Overview Financial Overview Comparables About SALE COMPARABLES MAP 1 4 5 2 5. Venetia Plaza 3 21

Investment Overview Area Overview Financial Overview Comparables About ABOUT FRANKLIN STREET Our Services INVESTMENT SALES INSURANCE SERVICES MANAGEMENT SERVICES LANDLORD PROPERTY MANAGEMENT VALUATION ADVISORY TENANT REPRESENTATION COLLABORATION ACHIEVING RESULTS THROUGH COLLABORATION Founded in 2006 during one of the toughest real estate climates, has blossomed into one of the fastest-growing full-service commercial real estate firms in the Southeast, with offices in Tampa, Atlanta, Jacksonville, Orlando, Miami, and Fort Lauderdale. Our family of real estate companies - which include Investment Sales, Tenant and Landlord Representation, Capital, Insurance, Management, and Valuation - is focused on delivering value-added solutions to the evolving demands of our clients. OUR MISSION STATEMENT and our family of full-services companies are committed to providing supreme advisory services for our clients through the collaboration of each member in our team of professionals. By embracing technology and the development and recruitment of top-level employees, we are able to deliver precise and accurate information to help clients make the most successful decisions in real estate, insurance, capital, management and valuation. 22

Investment Overview Area Overview Financial Overview Comparables About MARKET EXPERTISE Multifamily Retail Industrial Office TRANSACTION VOLUME $736,514,361 2011 2012 2013 2014 2015 2016 YEAR $10+ BILLION IN VALUATIONS 6,500 ASSIGNMENTS COMPLETED PROPERTY MANAGEMENT 7.8 MILLION SQUARE FEET ALL ASSET TYPES THROUGHOUT THE U.S. 30 MILLION SF OF COMMERCIAL PROPERTY MORE THAN $500 MILLION IN LOAN ORIGINATIONS REPRESENTATION OF 70 RETAILERS IN 9 STATES LOCAL, REGIONAL, AND NATIONAL CLIENTS Clients Represented: Tenant, Landlord, Management, and Valuation Caribbean Offices Closed Transactions: Investment Sales, Insurance TAMPA Caribbean ATLANTA JACKSONVILLE ORLANDO FT.LAUDERDALE FT MIAMI 13 MILLION SQUARE FEET LANDLORD REPRESENTATION LOCAL, REGIONAL, AND NATIONAL CLIENTS ATLANTA JACKSONVILLE 2016 TENANT TRANSACTIONS TOTALING ORLANDO $42+ MILLION OFFICE AND INDUSTRIAL LOCAL, REGIONAL, AND NATIONAL CLIENTS TAMPA FT.LAUDERDALE FT MIAMI 23

7751 Belfort Franklin Parkway, Street Suite 110 24 Jacksonville, Florida 32256 Presented By: Jim Reed Director, Multifamily Investment Sales Jim.Reed@FranklinSt.com 904.899.0310 PHONE: 904.271.4120 FAX: 904.899.5890 www.franklinst.com www.twitter.com/franklinst_jax Multifamily Investment Sales Team Ricky Jones, Director Zach Ames, Director Hernando Perez, Director Jim Reed, Director Matt Kesterson, Senior Director Jake Reid, Senior Director Greg Matus, SVP Investment Sales Darron Kattan, Managing Director Kurt Keaton, President, RE SVS & MGMNT SVS