HAMPTON PLACE HAMPTON, SC 41 UNITS

HAMPTON PLACE HAMPTON, SC 41 UNITS

TABLE OF CONTENTS Property Profile...3 Location Overview...7 Financial Analysis...13 HAMPTON PLACE 425 WADE HAMPTON ROAD HAMPTON, SC The Kirkland Company is proud to present the following Offering Memorandum for Hampton Place, 41 Studio, 1BD & 2BD units in Hampton, South Carolina. The asset sits just off of W Carolina Ave. (11,500 VPD) and 3rd St. NE (5,200 VPD). As a part of the South Carolina Low Country, Hampton is known for being a region along South Carolinas coast rich in historic cities and communities, natural environment, and cultural heritage. Hampton is conveniently located 75 miles west of Charleston, SC, 50 miles north of Savannah, GA, 60 miles northwest of Hilton Head Island, and 75 miles east of Augusta, GA. The asset is a 25-minute drive from The University of South Carolina Salkehatchie, one of four USC regional campuses with a total enrollment of 1,108 students and 57 members of their academic staff. Augusta Columbia Hampton Place Chris Yeagle cyeagle@thekirklandco.com Kyle Chase kchase@thekirklandco.com In a 2012 census Hampton County had a total employment of 91,673. The county s largest employers include Brunson Building Supply Co. (2.2 miles), Elliott Sawmilling Co. (18.2 miles), Hampton Regional Medical Center (1.1 miles), LeCruset of America (12.2 miles), and Palmetto State Bank (1.4 miles). In addition to these, Hampton County is known for its three industrial parks, one of those covering a portion of a foreign trade zone. Hampton s main entertainment stems from Palmetto Theater, Bar Hampton, and Spinbad records. Hampton also has two medical centers, Beaufort Memorial Harrison Peeples Care Center and Hampton Regional Medical Center, the main emergency center in the town. Hampton Regional covers 82,000 SF, has 32 beds, and 30 members on its physician staff. The hospital operates under the guiding principle that people living in rural areas deserve local access to the finest medical care available. Neil Chrisp nchrisp@thekirklandco.com Confidentiality & Disclaimer 2 Charlotte Nashville Charleston T: 704.208.3800 The information contained in the following Offering Memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from The Kirkland Company and should not be made available to any other person or entity without the written consent of The Kirkland Company. This Offering Memorandum has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. The Kirkland Company has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant s plans or intentions to continue its occupancy of the subject property. The information contained in this Offering Memorandum has been obtained from sources we believe to be reliable; however, The Kirkland Company has not verified, and will not verify, any of the information contained herein, nor has The Kirkland Company conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR KIRKLAND COMPANY AGENT FOR MORE DETAILS. 3

OFFERING SUMMARY PRICING SUMMARY Offering Price $1,600,000 CAP Rate (Pro ) 9.09% Year 1 Cash-on-Cash 13.18% SITE Number of Units 41 Rentable Square Feet 36,700 Average Square Feet Per Unit 895 Financing Offered All Cash Number of Apartment Buildings 5 Year Built 1985 INVESTMENT HIGHLIGHTS Modern Construction Recently Renovated 100% Occupied W/D Connections Acreage 4.14 Density (Units Per Acre) 9.90 Access Type Wade Hampton Road CONSTRUCTION & UTILITIES Exterior Vinyl Siding Newest Product In Market Roof Parking Surface Electricity Water & Sewer Pitched / Shingles Asphalt South Carolina Electric & Gas Lowcountry Regional Water System UNIT BREAKDOWN Type Units Unit SF Total SF Studio 1 700 700 1BD/1BA 8 700 5,600 2BD/1BA 32 950 30,400 Total/Avgs 41 895 36,700 4 5

LOCATION OVERVIEW

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FINANCIAL ANALYSIS

FINANCIAL ANALYSIS INCOME May-17 T12 % of Gross May-17 T3 % of Gross Year 1 Pro % of Gross Year 2 Pro Year 3 Pro Year 4 Pro Year 5 Pro Market Rent $240,300 $240,300 $265,200 $273,156 $281,351 $289,791 $298,485 Rent Growth $0 $0 $7,956 $8,195 $8,441 $8,694 $8,955 Scheduled Rent $240,300 $240,300 $273,156 $281,351 $289,791 $298,485 $307,439 Notes on Financials The rent roll includes 40 units. However, the property is renovating a small office building to be a studio. This unit is assumed to have 700 Square Feet and a market rent of $500 preleased. As of July 1, the property assessed a $25 per month rent increase to all tenants not at the standard rate. This increase has been included on the 28 rents below the standard rate for this analysis. (Vacancy: Loss-to-Lease) $0 $0 ($5,304) 2.00% ($5,463) ($5,627) ($5,796) ($5,970) Gross Potential Rent $240,300 $240,300 $267,852 $275,888 $284,164 $292,689 $301,470 Type Units Vacant Units Unit SF Total SF In-Place Rent Market Rent In-Place Rent (Monthly) Market Rent (Monthly) (Vacancy: General) ($38,272) 15.93% ($16,728) 6.96% ($10,608) 4.00% ($10,926) ($11,254) ($11,592) ($11,939) Net Rental Income $202,028 $223,572 $257,244 $264,961 $272,910 $281,097 $289,530 Plus: Late Fee $580 $420 $420 $433 $446 $459 $473 Plus: Other Income ($1,057) $0 $0 $0 $0 $0 $0 Effective Gross Income $201,551 $223,992 $257,664 $265,394 $273,356 $281,556 $290,003 Studio 1 0 700 700 $500 $500 $500 $500 1BD/1BA 8 0 700 5,600 $441 $450 $3,525 $3,600 2BD/1BA 32 0 950 30,400 $496 $500 $15,875 $16,000 Totals / Avgs 41 0 895 36,700 $485 $490 $19,900 $20,100 Rental income was not included on the financials provided for April and May. The rental income from March has been used for April and May. EXPENSES May-17 T12 Per Unit May-17 T12 Per Unit Year 1 Pro Per Unit Year 2 Pro Year 3 Pro Year 4 Pro Year 5 Pro Real Estate Taxes $27,218 $664 $27,218 $664 $32,162 $784 $33,127 $34,121 $35,145 $36,199 Insurance $11,503 $281 $11,503 $281 $9,225 $225 $9,502 $9,787 $10,080 $10,383 Electricity $9,436 $230 $9,436 $230 $9,719 $237 $10,011 $10,311 $10,620 $10,939 The line item Balance Adjustment from the financials provided has been removed from this analysis. Rent Growth is based off 3% growth each year. Other Income: All Other Income items are anticipated to grow at 3% per year throughout the pro forma for the sake of this analysis. Real Estate Taxes: Water & Sewer $4,135 $101 $4,135 $101 $4,259 $104 $4,386 $4,518 $4,654 $4,793 Pest Control $1,715 $42 $1,715 $42 $1,766 $43 $1,819 $1,874 $1,930 $1,988 Tax Reappraisal Schedule Last Reassessment Year Next Reassessment Year Assessment Ratio Total Millage Rate Manager Payroll $7,136 $174 $7,136 $174 $7,350 $179 $7,570 $7,797 $8,031 $8,272 Security $700 $17 $700 $17 $721 $18 $743 $765 $788 $811 Every 5 Years 2016 2021 6% $44.67 per $100 of assessed value Administrative $5,808 $142 $5,808 $142 $5,982 $146 $6,162 $6,347 $6,537 $6,733 Internet $585 $14 $585 $14 $603 $15 $621 $639 $659 $678 Time Period Parcel ID Appraised Value Assessed Value Hampton Co. Millage Rate Hampton Millage Rate Real Estate Taxes Maintenance & Repairs $5,846 $143 $5,846 $143 $6,150 $150 $6,335 $6,525 $6,720 $6,922 Cleaning & Decorating $1,952 $48 $1,952 $48 $5,125 $125 $5,279 $5,437 $5,600 $5,768 2016 119-12-07-001 $1,146,100 $68,766 $0.79 $43.88 $30,718 Landscaping & Grounds $785 $19 $785 $19 $809 $20 $833 $858 $884 $910 Professional $412 $10 $412 $10 $424 $10 $437 $450 $464 $477 Management (% of EGI) $10,737 5.33% $10,737 4.79% $13,527 5.25% $13,933 $14,351 $14,782 $15,225 Capital Reserves $4,569 $111 $4,569 $111 $14,350 $350 $14,350 $14,350 $14,350 $14,350 Total Expenses $92,537 $2,257 $92,537 $2,257 $112,172 $2,736 $115,107 $118,130 $121,243 $124,450 Net Operating Income $109,014 $131,455 $145,492 $150,287 $155,226 $160,313 $165,553 The state of South Carolina allows the appraised value at the time of sale to be equal to 75% of the sales price. While this reduction is state law, it must be requested. It is recommended that investors contact a professional for more specific information relating to this law. Travel expenses, including fuel and meals, have been removed from this analysis. The Total Maintenance Expense figure is an indicator for informational purposes only that we calculate by adding together the following line item expenses: Maintenance Payroll, Maintenance & Repairs, Cleaning & Decorating, and Capital Reserves. All expenses are anticipated to grow at 3% per year throughout the pro forma for the sake of this analysis. 14 15

Chris Yeagle cyeagle@thekirklandco.com Kyle Chase kchase@thekirklandco.com Charlotte Nashville Charleston T: 704.208.3800 Neil Chrisp nchrisp@thekirklandco.com