Huntington Ridge Apartments Norwich, CT 100 Unit Apartment Community

OFFERING MEMORANDUM Huntington Ridge Apartments Norwich, CT 100 Unit Apartment Community Offering Price: $11,300,000

Exclusive Offering Memorandum Exclusively Presented by: Chozick Realty, Inc. 100 Wells Street STE 1D Hartford, CT 06103 (860) 247-7400 phone (860) 247-7401 fax www.chozickrealty.com All information contained herein is from sources deemed reliable; however, no representations or warranties are made as to accuracy or completeness and is provided subject to errors, omission, change, prior sale and withdrawal from market, all without notice. This information is confidential and is provided strictly as background information for the sole use of the prospective purchaser and its representatives. All interested parties are encouraged to make their own independent review and investigation of the property. 2

Confidentiality Agreement The information contained in this offering memorandum is offered to you under the following terms. Your acceptance of this offering memorandum shall be deemed to be acceptance of the terms herein. Should you not agree to these terms, please return this offering memorandum to Chozick Realty, Inc. This information is provided to you for your sole use and the use of your partners, investors and advisors in assisting you with the review and potential purchase of the property. You agree to keep this information confidential and shall instruct any others that you must share this information with of this agreement and ensure that they too will be bound by these terms. This offering memorandum is intended to provide an overview of the property offering. While information is from sources deemed reliable, it is offered subject to errors, omissions, change, prior rental or sale, or withdrawal from the market, all without notice. No representations or warranties of any kind are made by Chozick Realty, Inc. or the Owner. You represent that you are a qualified and knowledgeable investor and that any and all review, investigation or confirmation of this information and property related information both physical and financial is your sole responsibility. While Buyer Broker participation is welcomed, neither Chozick Realty, Inc. nor the owner will pay any referral, brokerage, finder or other fee to another Broker or Finder. Any fee due to any broker or finder other than Chozick Realty, Inc. shall be paid by Buyer if you so choice to engage a buyer s broker or finder. 3

Introduction Chozick Realty, Inc. is pleased to offer Huntington Ridge Apartments. This Class A rental community offers 100 units built in 2006 located just one exit from Mohegan Sun Resort & Casino in Norwich, CT OPPORTUNITY Huntington Ridge is a 100 unit apartment community constructed in 2006, making it one of Norwich s newest residential addresses. This 100 unit community is situated at exit 80 off of I-395, just one exit from the Mohegan Sun Resort and Casino. Located in a residential setting, yet just minutes away from a wealth of employment, entertainment and historical venues offered in Southeastern Connecticut, Huntington Ridge offers an outstanding location in which to live and invest. Offering Summary Price $11,300,000 Total Units 100 Net Rentable Area +/- 90,106 Number of Buildings 4 Construction 2006 Parcel Size 13.4 Acres The spacious residences offered at Huntington Ridge consist of 21 one bed/one bath, 61 two bed/two bath and 18 three bedroom apartment homes. Unit sizes range from 700 to 1,192 SF. All apartments have resident paid high efficiency HVAC systems, well appointed GE applicanced kitchens and resident amenities include a clubhouse and playground. 4

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INVESTMENT HIGHLIGHTS Huntington Ridge Apartments 100 Unit Apartment Community Constructed in 2006 - Immediate upside room in rental rates supported by market survey Large Apartment Homes with 21 one bed 700-800 sf; 48 two bed, two bath 850-980 sf; 18 three bed two bath 1192 sf Amenities include Club House with Fitness Room, Meeting Room, Kitchen, On Site Office, Laundry, Playground, Fully applianced Kitchens, Generous Closet Space, 13 units with vaulted ceilings and onsite parking for 152 cars High efficiency resident paid gas fired heating and central air conditioning 13.37 acre site Ideal location at exit 80, just one exit from the Mohegan Sun Resort Casino Original site plan has location for swimming pool Condominium public offering statement completed and ready to file if condo sales are a desired exit strategy NORWICH HIGHLIGHTS Norwich is located in Vibrant New London County with a growing population of 273,723 Norwich Population is 40,378 as of 2014, projected to grow to 45,132 by 2020 The Norwich/Groton/New London market is home to such employers as Pfizer, General Dynamics Submarine ship yard, US Navy Submarine Base, Foxwoods Resort Casino, Mohegan Sun Resort Casino and the US Coast Guard Academy Midway between Boston (100 miles) and New York (136 miles). Just 15 miles to Groton and New London, 42 miles to Hartford and 51 miles to Providence RI Serviced by Amtrak rail service, Groton/New London Airport, Intestate 95 and 395 as well as Routes 2,12,32,82,165 and 169 Median Household Income over $70,000 within a three mile radius of Stonington Estates 7

PROPERTY SUMMARY Huntington Ridge Apartments is a Class A 100 unit multifamily complex completed in 2006. Set in a residential setting, yet only one highway exit away from the Mohegan Sun Resort Casino, Huntington Ridge offers a location second to none. The four attractive colonial style buildings offer spacious garden style apartments with 21 one bedroom, 61 two bedroom and 18 three bedroom residences, with two and three bedroom units having two bathrooms. Each residence is equipped with individual tenant paid Carrier high efficiency gas heat and central air conditioning. The buildings on this 13.37 acre site are terraced into a rolling hillside, offering an attractive site design, while maximizing the efficiency of the buildings. Huntington Ridge offers a free standing office/clubhouse building and a fully equipped playground. As a relatively new community, together with a size and style of apartments and outstanding location, the property lends itself to condominium conversion. While 00% of the property is owned and operated as a rental community, Huntington Ridge has a full public offering statement completed and ready to file, offering flexibility to the investor in providing a highly profitable exit strategy as condominium ownership is warranted in the Norwich market. 8

Apartment units are fully equipped and well designed. Kitchens offer wall and base cabinets, GE appliances including refrigerator, dishwasher, electric stove and laminate countertops. Apartments have wall to wall carpeting throughout the unit with laminate floor covering in bathrooms and kitchens. Units are large with one bedrooms ranging from 700-800 SF, two bedrooms ranging from 850-980 SF and three bedroom units ranging from 950-1,192 SF. Thirteen upper floor apartments have highly attractive vaulted ceilings. Sixteen apartment units are considered handicapped accessible with grab bars in bathrooms and emergency strobe lights. The site has 152 surface parking spaces. There are grills for resident use and a fully remodeled and renovated laundry facility owned by the property. Roofs are pitched asphalt shingle. Heat is supplied by resident paid Carrier gas HVAC systems. Windows are double hung with storm and screens. 9

Executive Summary Address Total Units 100 SF Finished Area 31-61 Henry Street Norwich, CT 06360 122,040 SF (90,106 SF Net Rentable) Unit Mix Unit Type No. Units Size (SF) 1BR, 1BA 17 700 Handicap Units Parking Year Built 2006 Number of Buildings Construction Foundation Roof Windows Doors Walls/Ceilings Heat/AC Hot Water Electrical Water/Sewer Available Utilities 1BR, 1BA 4 800 2BR, 2BA 18* 850 *2 units with vaulted ceilings 2BR, 2BA 30* 980 *11 units with vaulted ceilings 3BR, 2BA 13 950 3BR, 2BA 2 1,192 3BR, 1BA 3 1,192 18 Handicap units; 4 1BRs & 14 2BRs Equipped with grab bars & call switches in bathrooms and emergency strobe lights 152 spaces Four Residential, One Clubhouse/Office Wood frame with vinyl siding Poured Concrete Pitched asphalt shingle Double pane, double hung, vinyl Unity entry doors are solid core. Interior doors are six panel wood Painted Sheetrock; 13 units offer vaulted ceilings Individual resident paid Carrier Gas HVAC units in each apartment Individual resident paid 40 Gallon capacity AO Smith hot water heaters in each unit Individual resident paid Circuit panels located in each unit Municipal Electric, Gas, High Speed Internet, Cable Television, Telephone 10

Floor Covering Kitchens Appliances Bathrooms Amenities Laundry Life Safety Wall to wall carpet Vinyl & tile in kitchens and baths Carpet in common areas Raised oak panel wall and base cabinets Formica counter tops Refrigerator, Electric Range, Hood, Dishwasher & Garbage Disposal 1 & 2BR units with three fixture, combo tub/shower, water closet & sink/vanity Handicap units have grab bars & call switches Clubhouse/Office with fitness area, kitchen & sliders to a balcony Equipped Playground Washer/Dryer hookups have been installed in a limited number of units Common laundry room located in Building 2 with 10 vender owned washers & dryers Each apartment contains sprinklers & each room contains a smoke detector Executive Summary 11

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NORWICH, CONNECTICUT Norwich is located on 28 square miles in southeastern Connecticut within New London County. Both Norwich and New London County have growing populations, with Norwich growing from 36,111 people in 2000 to an estimated population of 45,132 by 2020. The Norwich population stands at 40,378 as of 2014, representing a healthy 11.8% growth rate from 2014 to 2020. The Norwich area and New London County are home to such major employers as Pfizer Pharmaceuticals, with its world research center located in nearby Groton. Also in nearby Groton is General Dynamics, one of only two submarine ship building yards in the United States. With over $24 billion of new contracts since 2014, General Dynamics is in the beginning stages of a generational expansion of the US Naval growth in the submarine warfare preparedness through the revamping of the Virginia Class and development of the new class of submarine to replace the Ohio Class. Other major employers in the area include the US Navy submarine base, the US Coast Guard, Mohegan Sun Resort and Casino and Foxwoods Resort and Casino. This dynamic area of the state is well served by the highway system with Interstates 95 and 395 running through Norwich as well as Routes 2, 12, 32, 82, 9, 165 and 169 providing access to the surrounding communities as well as the entire region. Norwich Location Description 18

PRO FORMA INTRODUCTION Operating Statement Huntington Ridge Apartments is owned and operated by an investor whose main business is outside of real estate ownership. As such the property is managed and operated by a family member. While well run and maintained the property offers immediate upside potential from tighter operations and maximization of current rental rates bringing them to the market level as outlined in the rental survey following in this report. The following Pro Forma operating statement utilizes a current September 2016 rent roll annualized as well as a comparison column indicating operations at market rents. Expenses are year end 2015 unless noted. It should be noted that real estate taxes were increased during the 2013 revaluation process and have not been challenged by current ownership even though the increase was substantial. While no representation is made, tax savings may be a possibility through the appeal process in the future should the purchaser wish to appeal after taking ownership. 19

Operating Statement Huntington Ridge Apartments Pro Forma Current Market INCOME Scheduled Rent Rents Comments Residential Gross Potential $1,299,000 $1,501,200 Current: Sept RR Annualized/Market $1075 1bed; $1275 2bed; $1375 3 bed Less Vacancy & Loss -$51,960 -$60,048 4% of Gross Potential Net Potential Rental Income $1,247,040 $1,441,152 Other Income Laundry $11,768 $11,768 2016 YTD Annualized Mis. Tenant Charges & Fees $11,250 $11,250 Estimate for late fees, transfer fees, Damages, Applications etc Total Other Income $23,018 $23,018 TOTAL INCOME $1,270,058 $1,464,170 EXPENSES Management/Leasing/Admin/Office $37,411 $43,235 Property is self managed by ownership. 3% of NPRI Used Professional Fees $6,526 $6,526 2105 year end Telephone/Internet/Data $2,880 $2,880 2015 year end adjusted for personal phones Advertising $8,843 $8,843 2015 year end Repairs & Maintenance $15,338 $15,338 2015 year end Supplies $7,423 $7,423 2015 year end Cleaning & Cleaning supplies $1,211 $1,211 2015 year end Trash $15,178 $15,178 2015 year end Landscaping $8,295 $8,295 2015 year end Snow Removal $6,526 $6,526 2015 year end Payroll $77,326 $77,326 2015 year end. One office staff; one full time super Payroll Burden $15,465 $15,465 20% of payroll Utilities $85,253 $85,253 2015 year end. Residents pay for heat, AC, Hot Water & Electricity Insurance $40,448 $40,448 2015 year end Real Estate Tax $275,028 $275,028 Current RE Tax from Norwich tax collect TOTAL OPERATING EXPENSES $603,151 $608,975 NET OPERATING INCOME $666,907 $855,195 OFFERING PRICE $11,300,000 $11,300,000 INDICATED CAP RATE 5.90% 7.57% 20

Rental Comps 3. Meadow Ridge 4. Thames River 1. Huntington Ridge Apartments 5. Cambridge Estates 6. Summit Wood 2. Stonington Estates Apartments 7. Rose Hill 21

Rental Comps Name Units Rental Rates Square Footage Heat/HW Property Amenities 1. Huntington Ridge 100 1 Bed 1 Bath $900 700-800 sf Resident Paid Clubhouse, playground, fitness room 100 Henry St 2 Bed 2 Bath $1,100 850-980 sf Pet Friendly Norwich, CT 3 Bed 2 Bath $1,200 950-1192 sf BUILT 2006 2. Stonington Estates 71 2 Bed 1 Bath $1,275 850 sf Resident paid Fitness Center, Tennis Court, Balconies 102 Stonington Road Pet Friendly Norwich, CT BUILT 2005 3. Meadow Ridge 120 1 BR 1 Bath $1,095-$1105 900 sf Resident Paid Pool 4 Plumtree Dr 2 BR 2 Bath $1,170-$1,300 1,100 sf Pet Friendly Norwich, Ct 2 BR TH 1.5 Bth $1280-1430 1,200 sf BUILT 1985 4. Thames River 225 1Bed 1 Bath $975 850 sf Resident Paid Basketball, Playground, Fitness, Pool 495 Laurel Hill Rd 2Bed 1 Bath $1015-1,135 1000 sf Pet Friendly Norwich, Ct 3 Bed 1 Bath $1,310 1250 sf BUILT 1975 5. Cambridge Estates 92 1Bed 1 Bath $999 550-750 sf Property Paid Pool 9 Oxford Drive 2Bed 1.5 Bth$1,250-1,299 1,000 SF Pet Friendly Norwich CT BUILT 1977 6. Summitwoods Apts 120 1Bed 1 Bath $800 725 sf Resident Paid Playground, Basketball 3 Summitwood Drive 2 Bed 1 Bath $900 950 sf Pet Friendly Norwich, CT 3 Bed 2 Bath $1,150 1326 sf BUILT 1991 7. Rose Hill Apts 185 1 Bed 1 Bth $874-$980 708 sf Property Paid Clubhouse, Playground 10 Gregory Road 2 Bed 1 Bth $1012-1170 869 sf Pet Friendly Norwich, CT 3 Bed 1 Bth $1455-$1530 1161 sf BUILT 1972 22

Name # of Units Sale Date Price/Unit Sale Price 1. Stonington Estates 71 8/23/2016 $95,775 $6,800,000 102 Stonington Rd Norwich, CT Blt 2005 71 2 Bed; 1 bath Name # of Units Sale Date Price/Unit Sale Price Sales Comps 2. Cambridg/Meadow Rdg 212 5/31/2016 $89,150 $18,900,000 4 Pumtree & 9 Oxford Dr Norwich, CT Blt 1977/1986 90 1 bed; 122 2 bd Name # of Units Sale Date Price/Unit Sale Price 3. 6-7 Woods Drive 25 4/5/2016 $106,875 $2,137,500 6-7 Woods Drive Norwich, CT Blt 2011 5-2 bed; 15 3 bed Name # of Units Sale Date Price/Unit Sale Price 4. Fieldstone Apts 60 6/21/2016 $80,833 $4,850,000 99 Grove Ave Groton, CT Blt 1970 20 1 bed; 40 2 bed Name # of Units Sale Date Price/Unit Sale Price 6. Ledges Apartments 339 9/24/2014 $142,330 $48,250,000 11 Ledgewood Dr Groton, CT Built 2003 23