MIDLAND MULTIFAMILY PORTFOLIO

MIDLAND MULTIFAMILY PORTFOLIO MIDLAND PORTFOLIO 50 UNITS EXCEPTIONAL INVESTMENT OPPORTUNITY HIGH GROWTH MARKET Town & Country Apartments 3310 Bedford Avenue Midland, Texas 79703 Simpatico Apartments 2910 West Michigan Avenue Midland, Texas 79701 JORDAN CORTEZ Managing Principal 214-556-1951 Jordan.Cortez@VanguardREA.com MICHAEL ANDERSON 214-556-1952 Michael.Anderson@VanguardREA.com DAVID ELLIS 214-556-1953 David.Ellis@VanguardREA.com MIDLAND MULTIFAMILY PORTFOLIO 1

OFFERED PROPERTY Vanguard Real Estate Advisors is pleased to present the exclusive opportunity to purchase Town & Country and Simpatico ( Properties ) located in the heart of West Texas in the flourishing city of Midland. Each multifamily community is comprised of 25 units and consistently remains 100 percent occupied. The Properties are made up of a mixture of one- and two-bedroom floor plans and one single-family home. Town & Country and Simpatico were constructed in 1968 and 1967, respectively, and are well-maintained garden-style communities that offer investors an exceptional in-place cash flow in one of the strongest apartment markets and economies in the country. Strategically positioned within 0.9 miles of each other just west of Downtown Midland, each asset possesses an exceptional location near many of the region s largest employers, retailers and major roadways. Additionally, a new investor will benefit from capital expenditures recently undertaken by current ownership totaling approximately $140,000 and include items such as: A/C replacement, parking lot repairs, paint, pool rehab, roof replacement, landscaping, fencing and select interior unit renovations. The Properties also offer upside potential to investors through greater operating efficiencies and reduction of expenses and through the lease-up of a non-revenue generating unit. The Properties are located in the Midland Metropolitan Statistical Area ( Midland MSA ) that has a current estimated population of 159,934 and is located midway between El Paso and Dallas/Fort Worth along Interstate 20. The Midland MSA is located adjacent to the Odessa Metropolitan Statistical Area ( Odessa MSA ) which has a total population of approximately 149,000. Both the Midland and Odessa MSAs are located within the Permian Basin which is home to the second largest oil and gas shale play in the world with an economic impact of $137.8 billion and 546,000 in sustained jobs and is the primary economic driver for recent exceptional growth in the Midland and Odessa economies. TOWN & COUNTRY INVESTMENT SUMMARY Address 3310 Bedford Avenue Midland, TX 79703 Asking Price $2,075,000 Asking Price per Unit $83,000 Asking Price per Square Foot $92.50 Number of Units 25 Units Year Built 1968 Net Rentable Square Feet 22,433 SF Average Unit Size 897 SF Average Market Rent per Unit $908 Average Market Rent per SF $1.01 Occupancy 100% Pro Forma Cap Rate 8.4% Pro Forma Year 1 Cash-on-Cash Return 14.0% * Rents and Occupancy as of September 23, 2014 SIMPATICO INVESTMENT SUMMARY Address 2910 West Michigan Avenue Midland, TX 79701 Asking Price $1,750,000 Asking Price per Unit $70,000 Asking Price per Square Foot $90.57 Number of Units 25 Units Year Built 1967 Net Rentable Square Feet 19,323 SF Average Unit Size 773 SF Average Market Rent per Unit $799 Average Market Rent per SF $1.03 Occupancy 100% Pro Forma Cap Rate 9.1% Pro Forma Year 1 Cash-on-Cash Return 16.1% * Rents and Occupancy as of September 23, 2014 MIDLAND MULTIFAMILY PORTFOLIO 2

OFFERED PROPERTY (continued) The Midland MSA is currently one of the fastest growing economies in the nation and has been recognized for the following achievements: Midland has the lowest unemployment rate in the State of Texas and the fourth lowest in the nation at 2.9 percent. Midland is ranked second fastest growing metro in the nation with 10.67 percent population growth from 2010 to 2013. Odessa, Midland s sister city, was ranked fourth with 8.93 percent growth during that same time period. In December 2013, Daily Finance ranked Midland as America s top-earning metro area. The Bureau of Economic Analysis ranked Midland as the fastest growing MSA, in terms of personal income, for the third year in a row. The Bureau of Labor Statistics recorded the largest over-the-year percentage gain in employment in Midland in 2013. Midland ranked #1 for top 20 small cities in the Economic Strength Factors category and #3 in overall top 30 small cities according to Area Development. Forbes magazine ranked Midland #1 Best Small Cities for Jobs in 2013. Financing: Town & Country and Simpatico are being offered on an All-Cash basis allowing a Buyer to place new debt on the Properties. TOWN & COUNTRY UNIT MIX No. of Type Description Units SIMPATICO UNIT MIX Type Description No. of Units Unit Size* Unit Size* Market Rent Market Rent Rent per SF A1 1 Bed / 1 Bath 8 817 $813 $0.99 A2 1 Bed / 1 Bath 8 825 $900 $1.09 B1 2 Bed / 2 Bath 8 1,025 $1,013 $0.99 B2 2 Bed / 1.5 Bath 1 1,097 $900 $0.82 Total/Averages 25 897 $908 $1.01 * Square footage is approximate. Buyer is advised to verify actual net rentable square footage during due diligence. Rent per SF A1 Efficiency 4 480 $575 $1.20 A2 Efficiency 4 542 $663 $1.22 A3 1 Bed / 1 Bath 8 690 $713 $1.03 B1 2 Bed / 1 Bath 4 840 $919 $1.09 B2 2 Bed / 2 Bath 4 1,215 $1,036 $0.85 C1 3 Bed / 2 Bath 1 1,495 $1,500 $1.00 Total/Averages 25 773 $799 $1.03 * Square footage is approximate. Buyer is advised to verify actual net rentable square footage during due diligence. MIDLAND MULTIFAMILY PORTFOLIO 3

INVESTMENT DRIVERS Distinctive and Well-Maintained Apartment Communities Town & County and Simpatico were constructed in 1968 and 1967, respectively, and are comprised of 50 units total. Currently 100 percent occupied, a new owner has the opportunity to capitalize on one of the strongest economies in the country and as a result, one of the strongest multifamily markets as well. Strategically located within the submarket, both assets are within close proximity to major transportation corridors, major employers and national retailers. Town & Country and Simpatico are situated on a combined 2.301 acres and consist of an attractive mix of well-appointed one- and two-bedroom units that average 897 and 773 square feet, respectively. Both Properties feature full-size washer/ dryer connections, swimming pool and covered parking. A new investor will also benefit from recent capital expenditures undertaken by current ownership totaling approximately $140,000 which include items such as: A/C replacement, parking lot repairs, paint, pool rehab, landscaping, fencing and select interior unit renovations. Midland Park Country Club Midland College Hogan Park Midland Park Mall Midland Airpark Baker & Hughes Midland Memorial Hospital West Campus Midland High School Downtown Midland Town & Country Midland Memorial Hospital Scharbauer Sports Complex Simpatico Strategic Location Town & Country and Simpatico are located 0.9 miles from each other and offer excellent locations in northwest Midland. They are both less than 0.5 miles from Andrews Highway (Highway 158), a major thoroughfare in Midland with daily traffic counts totaling approximately 26,000 vehicles. These communities also offer convenient access to Interstate 20, approximately three miles south, Highway 191, approximately 2.4 miles west and Loop 250, approximately three miles north and west. Thriving downtown Midland is approximately 2.4 miles east, Midland International Airport is 11 miles southwest and downtown Odessa is approximately 19 miles southwest. The main campus of one of Midland s largest employment centers, Midland Memorial Hospital with a total employment of approximately 1,670, is approximately 1.6 miles southeast of Town & Country and 0.7 miles east of Simpatico. The Midland Memorial Hospital west campus is located 1.1 miles northwest of Town & Country and 1.9 miles northwest of Simpatico. Midland International Airport Warren-CAT Odessa 19 miles Beal Park Wal-Mart Super Center MIDLAND MULTIFAMILY PORTFOLIO 4

Dynamic Apartment Market Due to the strength of the economy, the rapidly growing population and the strained supply for housing options available in the region, vacancy rates are near an all-time low at 2.1 percent for assets built prior to 1970. The two-property portfolio reflects the strength of the market with a current combined occupancy of 100 percent. Over the past 12 months, rents have grown an impressive 7.8 percent, and over the past 36 months an outstanding 17.7 percent, compared to the national averages of 3.1 percent and 2.7 percent over those same time periods. The Midland-Odessa market is projected to continue with average annual rent growth of 4.7 percent over the next five years. Rents for product built prior to 1970 is currently averaging $993 per unit monthly. In respect to the subject properties, Town & Country has experienced year-overyear income growth of 16.1 percent through August 2014, and Simpatico has achieved 13.0 percent income growth over the same period. (Source: Reis, Inc.) Midland s Economic Strength Located in the Southern Plains area of Texas, the Midland Metropolitan Statistical Area ( Midland MSA ) has one of the fastest growing economies in the nation fueled by the outstanding growth in the energy sector. The population has increased by 12.89 percent since 2010 which represents an excellent annualized growth rate of 2.6 percent. Additionally, the MSA is projected to continue to grow at the same rapid pace over the next five years. Midland s recent expansion has been driven by its location on the Permian Basin and new innovations in the energy industry. The strength of the economy is reflected with an extremely low unemployment rate of 2.9 percent as of July 2014, one of the lowest in the nation. Midland is inhabited with an educated workforce desirable for employers expanding in the region, and the area features a robust airport, strong healthcare facilities and outstanding education options for new residents. MIDLAND S LARGEST EMPLOYERS COMPANY NAME EMPLOYEES Midland Independent School District 2,919 Midland Memorial Hospital 1,670 Dawson Geophysical 1,244 Wal-Mart Super Center 950 City of Midland 880 Midland College 735 Baker & Hughes 600 Warren-Cat 597 Midland County 541 Concho Resources 509 TOTAL 10,645 Source: City of Midland Strong In-Place Cash Flow with Upside Potential Town & Country and Simpatico offer exceptional in-place yields as they are both 100 percent occupied in a residential supply-constrained metropolitan area due to the phenomenal economic growth. With the shortage of housing throughout the region, a new investor will be able to realize substantial rent increases upon unit turns, thus capitalizing on the market s strong rent growth. Additionally, the Properties are located 0.9 miles from one another, allowing for economies of scale and better efficiencies in management through leveraging on-site staff to serve multiple communities. Also, the current in-place third party management company occupies a 1,097-square-foot unit utilized as their corporate office which is not listed on the current rent roll; this unit could potentially be reconfigured and leased as a residential or commercial unit, thus providing a new investor with additional upside potential. A new investor will also benefit from reducing operating expenses as the Properties currently operate several expense line items above market norms. MIDLAND MULTIFAMILY PORTFOLIO 5

MIDLAND MULTIFAMILY PORTFOLIO 6

OFFERING PROCEDURES Town & Country and Simpatico are being offered to Principals only, subject to the limiting conditions described in the Offering Memorandum and the Confidentiality Agreement. Prospective investors should recognize the following: Property Inquiries All property information inquiries should be addressed to Vanguard. Please do not contact the on-site staff directly. Please contact Jordan Cortez at 214-556-1951 (Jordan.Cortez@VanguardREA.com) or Michael Anderson at 214-556-1952 (Michael.Anderson@VanguardREA.com). Property Tours Property tours are highly recommended and will be offered upon request. To arrange a personal tour of the Property, please contact Jordan Cortez at 214-556-1951 (Jordan.Cortez@VanguardREA.com) or Michael Anderson at 214-556-1952 (Michael.Anderson@VanguardREA.com). Purchase Offer Instructions Purchase offers should be submitted on a Letter of Intent basis and should clearly reflect, at a minimum, the purchase price for the Property, earnest money deposit amounts, allocation of closing costs, due diligence period and closing period. Financing These Properties are offered on an All-Cash basis. Disclaimer Owner reserves the right, at its sole discretion, to reject any and all offers to purchase the Property and/or to terminate discussions with any prospective investors, at any time, with or without notice. Owner shall not be bound until a mutually agreed contract is executed by and delivered to all parties. CONTACT INFORMATION VANGUARD REAL ESTATE ADVISORS 3500 Oak Lawn Avenue, Suite 375 Dallas, TX 75219 www.vanguardrea.com JORDAN CORTEZ Managing Principal 214-556-1951 Jordan.Cortez@VanguardREA.com MICHAEL ANDERSON 214-556-1952 Michael.Anderson@VanguardREA.com DAVID ELLIS 214-556-1953 David.Ellis@VanguardREA.com MIDLAND MULTIFAMILY PORTFOLIO 7

INFORMATION ABOUT BROKERAGE SERVICES Before working with a real estate broker, you should know that the duties of a broker depend on whom the broker represents. If you are a prospective seller or landlord (owner) or a prospective buyer or tenant (buyer), you should know that the broker who lists the property for sale or lease is the owner s agent. A broker who acts as a subagent represents the owner in cooperation with the listing broker. A broker who acts as a buyer s agent represents the buyer. A broker may act as an intermediary between the parties if the parties consent in writing. A broker can assist you in locating a property, preparing a contract or lease, or obtaining financing without representing you. A broker is obligated by law to treat you honestly. IF THE BROKER REPRESENTS THE OWNER The broker becomes the owner s agent by entering into an agreement with the owner, usually through a written listing agreement, or by agreeing to act as a subagent by accepting an offer of subagency from the listing broker. A subagent may work in a different real estate office. A listing broker or subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first. The buyer should not tell the owner s agent anything the buyer would not want the owner to know because an owner s agent must disclose to the owner any material information known to the agent. IF THE BROKER REPRESENTS THE BUYER The broker becomes the buyer s agent by entering into an agreement to represent the buyer, usually through a written buyer representation agreement. A buyer s agent can assist the owner but does not represent the owner and must place the interests of the buyer first. The owner should not tell a buyer s agent anything the owner would not want the buyer to know because a buyer s agent must disclose to the buyer any material information known to the agent. IF THE BROKER ACTS AS AN INTERMEDIARY A broker may act as an intermediary between the parties if the broker complies with the laws of the state. The broker must obtain the written consent of each party to the transaction to act as an intermediary. The written consent must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker s obligations as an intermediary. The broker is required to treat each party honestly and fairly. A broker who acts as an intermediary in a transaction: (1) shall treat all parties honestly; (2) may not disclose that the owner will accept a price less than the asking price unless authorized in writing to do so by the owner; (3) may not disclose that the buyer will pay a price greater than the price submitted in a written offer unless authorized in writing to do so by the buyer; and (4) may not disclose any confidential information or any information that a party specifically instructs the broker in writing not to disclose unless authorized in writing to disclose the information or required to do so by a court order or if the information materially relates to the condition of the property. With the parties consent, a broker acting as an intermediary between the parties may appoint a person who is licensed under the state and associated with the broker to communicate with and carry out instructions of one party and another person who is licensed and associated with the broker to communicate with and carry out instructions of the other party. IF YOU CHOOSE TO HAVE A BROKER REPRESENT YOU, you should enter into a written agreement with the broker that clearly establishes the broker s obligations and your obligations. The agreement should state how and by whom the broker will be paid. You have the right to choose the type of representation, if any, you wish to receive. Your payment of a fee to a broker does not necessarily establish that the broker represents you. If you have any questions regarding the duties and responsibilities of the broker, you should resolve those questions before proceeding. JORDAN CORTEZ Managing Principal 214-556-1951 Jordan.Cortez@VanguardREA.com MICHAEL ANDERSON 214-556-1952 Michael.Anderson@VanguardREA.com DAVID ELLIS 214-556-1953 David.Ellis@VanguardREA.com MIDLAND PORTFOLIO Town & Country Apartments 3310 Bedford Avenue Midland, TX 79703 Simpatico Apartments 2910 West Michigan Avenue Midland, TX 79701