COURTYARDS AT MADISON RANCH BUILD FOR RENT PORTFOLIO

COURTYARDS AT MADISON RANCH BUILD FOR RENT PORTFOLIO 82 HOME BFR SINGEL FAMILY INVESTMENT PORTFOLIO Michael Finch Senior Vice President 480.626.0219 michael.qnch@svn.com Je7 Cline Senior Vice President 480.626.0210 jep.cline@svn.com SVN RealStar Advisors 10789 N. 90th St., Suite 203, Scottsdale, AZ 85260 OFFERING MEMORANDUM

PROPERTY INFORMATION 3 Property Summary Property Description Complete Highlights Additional Photos LOCATION INFORMATION 8 Regional Map Location Maps Aerial Map Site Plan FINANCIAL ANALYSIS 13 Investment Overview DEMOGRAPHICS 15 Demographics Report Demographics Map ADVISOR BIOS 18 Advisor Bio & Contact 1 Advisor Bio & Contact 2 Disclaimer SVN RealStar Advisors 10789 N. 90th St., Suite 203, Scottsdale, AZ 85260 OFFERING MEMORANDUM

FOR SALE 82 HOME BUILD FOR RENT (BFR) SFR INVESTMENT PORTFOLIO 82 HOME BUILD FOR RENT (BFR) SFR INVESTMENT PORTFOLIO 82 HOME BFR SINGEL FAMILY INVESTMENT PORTFOLIO 1 PROPERTY INFORMATION 1 PROPERTY INFORMATION 82 HOME BFR SINGEL FAMILY INVESTMENT PORTFOLIO COURTYARDS AT MADISON RANCH BUILD FOR RENT PORTFOLIO 1826 W POLLACK ST PHOENIX, AZ 85041 SVN RealStar Advisors Page 3 All SVN OEces Independently Owned and Operated The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

Property Summary OFFERING SUMMARY Sale Price: $20,768,000 Number Of Units: 82 Cap Rate: 5.69% NOI: $1,182,193 Lot Size: 0.05 Acres Year Built: 2017 Building Size: 174,229 Zoning: Market: Submarket: Residential Phoenix Southwest Phoenix Price / SF: $119.20 PROPERTY OVERVIEWVIEW This 82 Home Build For Rent Single Family Residential Investment Portfolio is located in the beautifully designed & gated community in the Courtyards at Madison Ranch. This subdivision is well positioned in the growing Southwest Phoenix submarket, only 5 miles from downtown Phoenix and minutes away from the largest municipal park in the country, South Mountain Park. This Build For Rent (BFR) investment opportunity consisting of 82 Build For Rent (BFR) Detached Single Family Residential Rental investment properties have already begun construction. Residents in the Courtyards at Madison Ranch Qnd great appeal within the securely gated community. Perfect for families looking for well-designed homes with expansive greenbelt areas, pedestrian friendly walkways, picnic areas, playgrounds, gated community pool, and soccer Qeld in the heart of the community for the kids to practice & play! The community, via in place HOA, meticulously maintains front yard landscaping. These 82 quality new build homes for rental investment features an opportunity for Buyer to purchase homes at CertiQcate of Occupancy and place tenants prior to completion so the investment is immediately cash Rowing. Currently, 6 homes are ready for immediate purchase and another 7 will be available at CertiQcate of Occupancy in October of 2017. This provides an investor an opportunity to have immediate cash Row with the purchase of the Qrst six homes while pre-leasing the next seven to be delivered shortly thereater. COURTYARDS AT MADISON RANCH BUILD FOR RENT PORTFOLIO 1826 W POLLACK ST, PHOENIX, AZ 85041 SVN RealStar Advisors Page 4

Property Description PROPERTY OVERVIEWVIEW The Courtyard at Madison 82 Home Build For Rent (BFR) portfolio opers almost no capital expenditures for several years ater occupancy. The Developer/Builder here is a seasoned Builder, with vast experience in the regional market place and is well known for quality & integrity. Our 82 BFRs oper spacious Roor plans throughout, all two story 3 & 4 bed and 2.5 bath homes with two car garages. Rental rates today are between rents between $1450-$1700 per month for these beautiful homes. Pre-Leasing can begin once homes are under contract, as some homes are available for immediate purchase and Builder can quickly Qnish out the remaining by Q2 of 2018, opering buyer very near term cash Row with a conservatively anticipated year 1 stabilized Cap Rate of 5.69%. Courtyards at Madison Ranch can provide immediate cash Row and return on your investment from day one! LOCATION OVERVIEWVIEW Courtyard at Madison Ranch is located in Phoenix, Arizona. More speciqcally, the property is part of the Southwest Phoenix submarket directly across from the South Mountain Pavilion Shopping Center, a major power center, opering residents over 230,000/sf of national & regional retailers on the signalized corner of West Baseline Road and South 19th Avenue. Only 2 miles east on Baseline Rd is a Fry s Food & Grocery Store as well. The community opers excellent drive by visibility with major frontage on 19th Ave and West Baseline Rd is one of the most traveled thoroughfares south of the I-10 Freeway. South 19th Avenue has direct on and op-ramp access to I-10 and is a major north/south thoroughfare in Phoenix. It is very hard to Qnd such quality living for at apordable prices with all the necessary amenities residents desire, but the Courtyards at Madison Ranch have exceeded expectations. COURTYARDS AT MADISON RANCH BUILD FOR RENT PORTFOLIO 1826 W POLLACK ST, PHOENIX, AZ 85041 SVN RealStar Advisors Page 5

Complete Highlights SALE HIGHLIGHTS Increase Your IRR and Yield with a New Build SFR Investment Portfolio Investment Opportunity with Little to No Capital Expenditures Strong Year 1 Stabilized Cap Rate of 5.69% with Zero Cap Ex Five Miles from Downtown Phoenix & Sky Harbor International Airport Major Employers within 10 miles in Almost All Directions Job Increases of 2.7% Annually are Projected for Next 5 Years Excellent Access & Visibility from Major Arterial Streets at 19th Ave & Baseline Rd TraSc Count on Baseline Rd is Over 33,000 Vehicles Per Day 82 Build For Rent (BFR) Detached Single Family Residential Rental Investment Portfolio Experienced Regional Builder Provides Homes at CertiQcate of Occupancy (C.O.) Builders Warranty on Brand New Homes with Greatly Reduced Capital Expenditures & Reserves Additional Home Warranty Package on Big Ticket Items Giving Nearly 5 Years of Limited Cap EX COURTYARDS AT MADISON RANCH BUILD FOR RENT PORTFOLIO 1826 W POLLACK ST, PHOENIX, AZ 85041 SVN RealStar Advisors Page 6

Additional Photos COURTYARDS AT MADISON RANCH BUILD FOR RENT PORTFOLIO 1826 W POLLACK ST, PHOENIX, AZ 85041 SVN RealStar Advisors Page 7

FOR SALE 82 HOME BUILD FOR RENT (BFR) SFR INVESTMENT PORTFOLIO 82 HOME BUILD FOR RENT (BFR) SFR INVESTMENT PORTFOLIO 82 HOME BFR SINGEL FAMILY INVESTMENT PORTFOLIO 2 LOCATION INFORMATION 2 LOCATION INFORMATION 82 HOME BFR SINGEL FAMILY INVESTMENT PORTFOLIO COURTYARDS AT MADISON RANCH BUILD FOR RENT PORTFOLIO 1826 W POLLACK ST PHOENIX, AZ 85041 SVN RealStar Advisors Page 8 All SVN OEces Independently Owned and Operated The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

Regional Map Courtyards at Madison Ranch Build For Rent Portfolio COURTYARDS AT MADISON RANCH BUILD FOR RENT PORTFOLIO 1826 W POLLACK ST, PHOENIX, AZ 85041 SVN RealStar Advisors Page 9

Location Maps COURTYARDS AT MADISON RANCH BUILD FOR RENT PORTFOLIO 1826 W POLLACK ST, PHOENIX, AZ 85041 SVN RealStar Advisors Page 10

Aerial Map Courtyards at Madison Ranch Build For Rent Portfolio COURTYARDS AT MADISON RANCH BUILD FOR RENT PORTFOLIO 1826 W POLLACK ST, PHOENIX, AZ 85041 SVN RealStar Advisors Page 11

Site Plan COURTYARDS AT MADISON RANCH BUILD FOR RENT PORTFOLIO 1826 W POLLACK ST, PHOENIX, AZ 85041 SVN RealStar Advisors Page 12

FOR SALE 82 HOME BUILD FOR RENT (BFR) SFR INVESTMENT PORTFOLIO 82 HOME BUILD FOR RENT (BFR) SFR INVESTMENT PORTFOLIO 82 HOME BFR SINGEL FAMILY INVESTMENT PORTFOLIO 3 FINANCIAL ANALYSIS 3 FINANCIAL ANALYSIS 82 HOME BFR SINGEL FAMILY INVESTMENT PORTFOLIO COURTYARDS AT MADISON RANCH BUILD FOR RENT PORTFOLIO 1826 W POLLACK ST PHOENIX, AZ 85041 SVN RealStar Advisors Page 13 All SVN OEces Independently Owned and Operated The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

Investment Overview SFRhub BFR BROCHURE INVESTMENT OVERVIEW 82 BFR Courtyard at Madison Ranch Operating Year: Year 2 Year 5 Year 7 INVESTMENT OVERVIEW: Stabilized Year: Year 1; T-12 Year 3; T-36 Year 5; T-60 a) Buy Price $20,768,000 b) Buy Price Per Unit $253,268 c) Cap Rate Stabilized Year 1/3/5 5.69% 6.29% 6.73% d) Cap Rate Adjusted with Cost Segregation Year 1/3/5 7.27% 7.87% 6.73% e) Gross Yield Year 1/3/5 8.03% 8.78% 9.31% f) Net Operating Income, Year 1/3/5 (N.O.I.) $1,182,193 $1,307,139 $1,397,321 g) Unleveraged Internal Rate of Return (I.R.R.) Year 1/3/5 Year Hold 8.22% 10.55% 11.38% h) Leveraged Internal Rate of Return (I.R.R.) Year 1/3/5 Year Hold 27.41% 35.15% 37.93% i) Leveraged Cash on Cash Return (ROI) Year 1/3/5 Year Hold 10.05% 12.06% 8.24% OPERATING PRO FORMA j) Gross Scheduled Income, Year 1/3/5 $1,668,417 $1,823,124 $1,934,152 k) Other Income (App. Fees, Pet Fees, Late Fees) $0 $0 $0 l) Average Lease Rate, (P.S.F.) Year 1/3/5 $0.80 $0.87 $0.93 m) Vacancy 0.0% 0.0% 0.0% n) Operating Expenses, Year 1/3/5 $486,224 $515,985 $536,831 o) Net Operating Income, (N.O.I.) Year 1/3/5 $1,182,193 $1,307,139 $1,397,321 p) Advanced Cost Segregation Benefit, Additional Annual Cash Flow $328,000 $328,000 $0 q) Adjusted Net Operating Income with Cost Segregation Benefit $1,510,193 $1,635,139 $1,397,321 DEBT OVERVIEW r) Debt Amount at 70% LTC $14,537,600 s) Annual Debt Service Payment (P&I) $883,908 t) Estimated Annual Market Valuation Appreciation (National) - Year 1/3/5 5.40% 5.40% 5.40% COURTYARDS AT MADISON RANCH BUILD FOR RENT PORTFOLIO 1826 W POLLACK ST, PHOENIX, AZ 85041 SVN RealStar Advisors Page 14

FOR SALE 82 HOME BUILD FOR RENT (BFR) SFR INVESTMENT PORTFOLIO 82 HOME BUILD FOR RENT (BFR) SFR INVESTMENT PORTFOLIO 82 HOME BFR SINGEL FAMILY INVESTMENT PORTFOLIO 4 DEMOGRAPHICS 4 DEMOGRAPHICS 82 HOME BFR SINGEL FAMILY INVESTMENT PORTFOLIO COURTYARDS AT MADISON RANCH BUILD FOR RENT PORTFOLIO 1826 W POLLACK ST PHOENIX, AZ 85041 SVN RealStar Advisors Page 15 All SVN OEces Independently Owned and Operated The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

Demographics Report 3 MILES 5 MILES 10 MILES Total population 79,543 165,327 773,086 Median age 28.1 29.1 29.6 Median age (male) 27.4 28.5 29.3 Median age (female) 28.8 29.5 29.8 Total households 22,793 46,817 254,430 Total persons per HH 3.5 3.5 3.0 Average HH income $54,829 $55,972 $57,535 Average house value $169,136 $246,087 $281,364 * Demographic data derived from 2010 US Census COURTYARDS AT MADISON RANCH BUILD FOR RENT PORTFOLIO 1826 W POLLACK ST, PHOENIX, AZ 85041 SVN RealStar Advisors Page 16

Demographics Map POPULATION 3 MILES 5 MILES 10 MILES Total population 79,543 165,327 773,086 Median age 28.1 29.1 29.6 Median age (male) 27.4 28.5 29.3 Median age (Female) 28.8 29.5 29.8 HOUSEHOLDS & INCOME 3 MILES 5 MILES 10 MILES Total households 22,793 46,817 254,430 # of persons per HH 3.5 3.5 3.0 Average HH income $54,829 $55,972 $57,535 Average house value $169,136 $246,087 $281,364 * Demographic data derived from 2010 US Census COURTYARDS AT MADISON RANCH BUILD FOR RENT PORTFOLIO 1826 W POLLACK ST, PHOENIX, AZ 85041 SVN RealStar Advisors Page 17

FOR SALE 82 HOME BUILD FOR RENT (BFR) SFR INVESTMENT PORTFOLIO 82 HOME BUILD FOR RENT (BFR) SFR INVESTMENT PORTFOLIO 82 HOME BFR SINGEL FAMILY INVESTMENT PORTFOLIO 5 ADVISOR BIOS 5 ADVISOR BIOS 82 HOME BFR SINGEL FAMILY INVESTMENT PORTFOLIO COURTYARDS AT MADISON RANCH BUILD FOR RENT PORTFOLIO 1826 W POLLACK ST PHOENIX, AZ 85041 SVN RealStar Advisors Page 18 All SVN OEces Independently Owned and Operated The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

Advisor Bio MICHAEL FINCH Senior Vice President 10789 N. 90th St., Suite 203 Scottsdale, AZ 85260 T 480.626.0219 C 480.797.9825 michael.qnch@svn.com AZ #SA576104000 PROFESSIONAL BACKGROUND Michael Finch began his successful career over 10 years ago in Phoenix, Arizona. Mr. Finch was able to expand his expertise from commercial and sales and development. He has developed broad local and national relationships with the top ranked high density mid to large scale developers for Commercial Mixed Use & Multifamily Development. As markets shifed, Mr. Finch leveraged lender relationships formed in previous years, to plan and begin distressed real estate disposition. Michael was able to develop and grow these relationships to become an integral part of the acquisition and disposition team. Michael has developed and managed an extensive pipe line of lender owned assets, short sales, and portfolio note sales. Michael has continued to deliver value add deals for existing multifamily assets as well as several income producing segments to his growing client base. With an extensive national network, Mr. Finch has been successful and enjoys being an integral partner for client teams focused on large scale income producing portfolios which include existing multifamily, retail, oece, medical & hospitality assets. COURTYARDS AT MADISON RANCH BUILD FOR RENT PORTFOLIO 1826 W POLLACK ST, PHOENIX, AZ 85041 SVN RealStar Advisors Page 19

Advisor Bio JEFF CLINE Senior Vice President 10789 N. 90th St., Suite 203 Scottsdale, AZ 85260 T 480.626.0210 C 480.442.8395 jep.cline@svn.com AZ #SA650889000 PROFESSIONAL BACKGROUND Mr. Cline has worked with top industry professionals and has personal advanced knowledge and experience in small to very large-scale commercial real estate brokerage, asset management, acquisition, Dnancing, development and construction segments. As a principal, Mr. Cline has completed approximately $2+ billion of commercial real estate property development and construction in most segments including approximately 22,000 multifamily units. Mr. Cline s specidc experience includes commercial real estate leadership in general management, team building and managing, corporate and construction Dnancing, business development, asset management, property management, development management, marketing, disposition of new construction projects including multi-family, hotel, oece, industrial and senior assisted living properties. JeC s top executive and mid-management level combined with front-line experience across most segments of commercial real estate in retail / management operations, design and general contracting, development, Dnancing, property management and real estate brokerage. Over 38+ years, JeC has established an expanding local and national network of industry leaders as partners, clients and associates. COURTYARDS AT MADISON RANCH BUILD FOR RENT PORTFOLIO 1826 W POLLACK ST, PHOENIX, AZ 85041 SVN RealStar Advisors Page 20

Disclaimer The material contained in this OPering Brochure is furnished solely for the purpose of considering the purchase of the property within and is not to be used for any other purpose. This information should not, under any circumstances, be photocopied or disclosed to any third party without the written consent of the SVN Advisor or Property Owner, or used for any purpose whatsoever other than to evaluate the possible purchase of the Property. The only party authorized to represent the Owner in connection with the sale of the Property is the SVN Advisor listed in this proposal, and no other person is authorized by the Owner to provide any information or to make any representations other than contained in this OPering Brochure. If the person receiving these materials does not choose to pursue a purchase of the Property, this OPering Brochure must be returned to the SVN Advisor. Neither the SVN Advisor nor the Owner make any representation or warranty, express or implied, as to the accuracy or completeness of the information contained herein, and nothing contained herein is or shall be relied upon as a promise or representation as to the future representation of the Property. This OPering Brochure may include certain statements and estimates with respect to the Property. These Assumptions may or may not be proven to be correct, and there can be no assurance that such estimates will be achieved. Further, the SVN Advisor and the Owner disclaim any and all liability for representations or warranties, expressed or implied, contained in or omitted from this OPering Brochure, or any other written or oral communication transmitted or made available to the recipient. The recipient shall be entitled to rely solely on those representations and warranties that may be made to it in any Qnal, fully executed and delivered Real Estate Purchase Agreement between it and Owner. The information contained herein is subject to change without notice and the recipient of these materials shall not look to Owner or the SVN Advisor nor any of their oscers, employees, representatives, independent contractors or asliates, for the accuracy or completeness thereof. Recipients of this OPering Brochure are advised and encouraged to conduct their own comprehensive review and analysis of the Property. This OPering Brochure is a solicitation of interest only and is not an oper to sell the Property. The Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest to purchase the Property and expressly reserves the right, at its sole discretion, to terminate negotiations with any entity, for any reason, at any time with or without notice. The Owner shall have no legal commitment or obligation to any entity reviewing the OPering Brochure or making an oper to purchase the Property unless and until the Owner executes and delivers a signed Real Estate Purchase Agreement on terms acceptable to Owner, in Owner s sole discretion. By submitting an oper, a prospective purchaser will be deemed to have acknowledged the foregoing and agreed to release the Owner and the SVN Advisor from any liability with respect thereto. To the extent Owner or any agent of Owner corresponds with any prospective purchaser, any prospective purchaser should not rely on any such correspondence or statements as binding Owner. Only a fully executed Real Estate Purchase Agreement shall bind the property and each prospective purchaser proceeds at its own risk. COURTYARDS AT MADISON RANCH BUILD FOR RENT PORTFOLIO 1826 W POLLACK ST, PHOENIX, AZ 85041 SVN RealStar Advisors Page 21