JKP Real Estate Consulting

Samples of Deliverables

p2. Consolidated Portfolio Summary Example

p3. Consolidated Portfolio Cash Flow Example

p4. Mixed-Use Assumptions Example

p5. Value-Add Income & Expenses Example

p6. Valuation Summary Example

p7. Data Visualization Example

p8. Equity Waterfall Example

2018

1

Example of Portfolio SummaryExample

Residential Units

Office Gross

SF

Retail Gross

SF

Park Allocation

%

Construction Start

Date

Total

Capitalization Total Equity LP Equity GP Equity

Building 1 294,118 5,556 22.5% 12/31/2018 87,473,467 33,728,982 30,356,084 3,372,898

IRR: 6.1% 6.1% 6.1%

Building 2 300 5,556 22.5% 3/31/2019 52,564,886 19,943,557 17,949,201 1,994,356

IRR: 16.9% 15.1% 28.2%

Building 3 235,294 5,556 22.5% 4/30/2019 57,959,496 4,996,454 4,496,809 499,645

IRR: 122.1% 87.3% 261.7%

Building 4 200 5,556 22.5% 10/31/2020 35,123,509 13,339,932 12,005,939 1,333,993

IRR: 16.5% 14.8% 27.8%

Building 5 55,556 10.0% 7/31/2019 13,478,555 5,022,361 4,520,125 502,236

IRR: 19.1% 16.4% 34.5%

Totals 500 529,412 77,778 100% 246,599,913 77,031,289 69,328,158 7,703,129

IRR: 26.4% 18.2% 81.0%

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7

Consolidated Cash Flows Aug-18 Aug-19 Aug-20 Aug-21 Aug-22 Aug-23 Aug-24 Aug-25 Total

Effective Gross Income 0 0 7,818,793 19,931,689 22,693,453 26,469,847 27,302,172 28,123,695 132,339,649

Gross Expenses 0 0 (4,350,816) (8,892,516) (9,699,838) (10,819,776) (11,356,761) (11,606,327) (56,726,034)

Net Operating Income 0 0 3,467,977 11,039,173 12,993,615 15,650,072 15,945,411 16,517,368 75,613,616

Operating Cash Flow 0 0 3,467,977 10,966,038 12,893,107 15,509,031 12,559,732 12,972,323 68,368,208

Acquisition/Development Costs (21,262,585) (69,587,380) (67,888,028) (23,521,053) (12,134,483) (397,048) (310,184) (319,489) (195,420,250)

Sales Proceeds 0 0 0 0 0 71,189,967 0 228,548,981 299,738,948

Unleveraged Net Cash Flow (21,262,585) (69,587,380) (64,420,051) (12,555,016) 758,624 86,301,950 12,249,548 241,201,815 172,686,905

Construction Loan Proceeds 0 31,551,930 64,805,309 14,920,269 11,338,763 0 0 0 122,616,271

Interest/Amort/Repayment/Fees 0 (1,039,598) (4,242,355) (61,814,270) (45,037,936) (1,141,514) (23,020,533) 0 (136,296,206)

Permanent Financing 0 0 0 95,440,100 60,810,463 0 35,045,994 0 191,296,557

Interest/Amort/Repayment/Fees 0 0 0 (2,456,288) (8,820,359) (49,039,777) (9,876,332) (152,786,282) (222,979,037)

Leveraged Net CF (21,262,585) (39,075,049) (3,857,097) 33,534,796 19,049,555 36,120,659 14,398,677 88,415,533 127,324,490

IRR Multiple

LP 18.2% 2.21x (19,136,326) (35,167,543) (3,471,388) 13,583,313 16,886,479 17,702,012 12,958,809 73,379,557 76,734,914

GP 81.0% 8.21x (2,126,258) (3,907,505) (385,710) 19,951,483 2,163,075 18,418,648 1,439,868 15,035,976 50,589,576

Portion of GP CF from Promote 0 0 0 18,442,226 286,800 16,451,757 0 6,882,691 42,063,475

2

Example of Consolidated Cash Flows

Cash Flow Projections Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Total

Year Ending Aug-18 Aug-19 Aug-20 Aug-21 Aug-22 Aug-23 Aug-24 Aug-25 Aug-26 Aug-27 Aug-28 Yrs. 0-10

Income

Market Residential Income 0 0 0 4,609,727 6,905,966 10,334,474 10,682,687 11,003,168 11,333,263 11,673,261 12,023,459 78,566,006

ADU Residential Income 0 0 0 0 0 0 0 0 0 0 0 0

Retail Income 0 0 150,620 1,514,619 1,825,992 1,974,565 2,033,801 2,094,815 2,157,660 2,222,390 2,289,061 16,263,524

Office Income 0 0 3,637,188 7,208,594 12,096,258 12,693,626 13,074,435 13,466,668 13,870,668 14,286,788 14,715,392 105,049,617

Parking Income 0 0 0 0 0 0 0 0 0 0 0 0

Other Income 0 0 0 0 0 0 0 0 0 0 0 0

Retail Reimbursements 0 0 43,892 441,370 532,107 575,402 592,664 610,444 628,757 647,620 667,048 4,739,303

Office Reimbursements 0 0 1,059,902 2,100,634 3,524,933 3,699,011 3,809,981 3,924,280 4,042,009 4,163,269 4,288,167 30,612,185

Gross Potential Income 0 0 4,891,600 15,874,945 24,885,256 29,277,077 30,193,569 31,099,376 32,032,357 32,993,328 33,983,127 235,230,635

Vacancy/Credit Loss - Resi 6.0% 0 0 0 (276,584) (414,358) (620,068) (640,961) (660,190) (679,996) (700,396) (721,408) (4,713,960)

Vacancy/Credit Loss - Retail 10.0% 0 0 (19,451) (195,599) (235,810) (254,997) (262,647) (270,526) (278,642) (287,001) (295,611) (2,100,283)

Vacancy/Credit Loss - Office 10.0% 0 0 (469,709) (930,923) (1,562,119) (1,639,264) (1,688,442) (1,739,095) (1,791,268) (1,845,006) (1,900,356) (13,566,180)

Effective Gross Income 0 0 4,402,440 14,471,840 22,672,969 26,762,749 27,601,519 28,429,565 29,282,452 30,160,925 31,065,753 214,850,212

Operating Expenses

Property Tax - Unabated 0 0 (1,061,394) (2,896,366) (4,290,326) (4,795,309) (4,891,216) (4,989,040) (5,568,231) (5,568,231) (5,568,231) (39,628,345)

Tax Abatement Savings 0 0 0 0 0 0 0 0 0 0 0 0

Utilities 0 0 0 (99,778) (149,717) (224,852) (232,434) (239,407) (246,590) (253,987) (261,607) (1,708,372)

Insurance 0 0 0 (117,017) (160,813) (225,665) (232,434) (239,407) (246,590) (253,987) (261,607) (1,737,521)

Marketing 0 0 0 (29,254) (40,203) (56,416) (58,109) (59,852) (61,647) (63,497) (65,402) (434,380)

Water & Sewer 0 0 0 (99,778) (149,717) (224,852) (232,434) (239,407) (246,590) (253,987) (261,607) (1,708,372)

Contracts 0 0 0 (70,210) (80,635) (86,655) (89,255) (91,932) (94,690) (97,531) (100,457) (711,366)

Property Management Fee 0 0 0 (129,994) (194,748) (291,432) (301,252) (310,289) (319,598) (329,186) (339,062) (2,215,561)

Payroll 0 0 0 (117,017) (160,813) (225,665) (232,434) (239,407) (246,590) (253,987) (261,607) (1,737,521)

Repairs and Maintenance 0 0 0 (112,250) (168,432) (252,958) (261,489) (269,333) (277,413) (285,736) (294,308) (1,921,919)

Administrative 0 0 0 (29,254) (40,203) (56,416) (58,109) (59,852) (61,647) (63,497) (65,402) (434,380)

Landscaping 0 0 0 (14,627) (20,102) (28,208) (29,054) (29,926) (30,824) (31,748) (32,701) (217,190)

Parking Rent 0 0 0 0 0 0 0 0 0 0 0 0

Retail Expense 0 0 (57,310) (468,207) (532,107) (575,402) (592,664) (610,444) (628,757) (647,620) (667,048) (4,779,558)

Office Expense 0 0 (1,255,311) (2,198,533) (3,591,272) (3,699,011) (3,809,981) (3,924,280) (4,042,009) (4,163,269) (4,288,167) (30,971,833)

Gross Expenses 0 0 (2,374,015) (6,382,286) (9,579,088) (10,742,840) (11,020,865) (11,302,579) (12,071,176) (12,266,265) (12,467,206) (88,206,319)

Resi Expense Ratio 0.0% 0.0% 0.0% 85.7% 84.0% 66.6% 65.9% 65.4% 69.5% 67.9% 66.5%

Net Operating Income 0 0 2,028,426 8,089,554 13,093,881 16,019,909 16,580,654 17,126,986 17,211,275 17,894,661 18,598,547 126,643,893

Capital Expenditures

Broker Fees (2nd Lease) - Retail 0 0 0 0 0 0 0 0 0 0 0 0

Broker Fees (2nd Lease) - Office 0 0 0 0 0 0 0 0 0 0 0 0

TI (2nd Lease) - Retail 0 0 0 0 0 0 0 0 0 0 0 0

TI (2nd Lease) - Office 0 0 0 0 0 0 0 0 0 0 0 0

Capital Reserves 0 0 0 (73,136) (100,508) (141,040) (145,272) (149,630) (154,119) (158,742) (163,504) (1,085,951)

Total CapEx 0 0 0 (73,136) (100,508) (141,040) (145,272) (149,630) (154,119) (158,742) (163,504) (1,085,951)

Operating Cash Flow 0 0 2,028,426 8,016,418 12,993,373 15,878,869 16,435,383 16,977,356 0 0 0 72,329,824

Acquisition/Development

Acquisition (19,636,848) 0 0 0 0 0 0 0 0 0 0 (19,636,848)

Acquisition Fee (1,294,358) 0 0 0 0 0 0 0 0 0 0 (1,294,358)

Closing Costs (392,737) 0 0 0 0 0 0 0 0 0 0 (392,737)

PreDevelopment Costs 0 (801,399) (183,217) (15,385) 0 0 0 0 0 0 0 (1,000,000)

Construction Costs 0 (68,695,073) (74,195,770) (81,862,675) (11,794,081) 0 0 0 0 0 0 (236,547,599)

Asset Management Fee 0 0 (66,037) (217,078) (340,095) (401,441) (414,023) (426,443) 0 0 0 (1,865,116)

Total Acquisition/Development Costs (21,323,943) (69,496,471) (74,445,023) (82,095,137) (12,134,176) (401,441) (414,023) (426,443) 0 0 0 (260,736,658)

Residual Value

Gross Sale Proceeds Resi 0 0 0 0 0 0 0 112,419,215 0 0 0 112,419,215

Gross Sale Proceeds Retail 0 0 0 0 0 0 0 26,843,118 0 0 0 26,843,118

Gross Sale Proceeds Office 0 0 0 0 0 0 0 172,562,863 0 0 0 172,562,863

NPV - Tax Abatement 0 0 0 0 0 0 0 0 0 0 0 0

Selling Costs 0 0 0 0 0 0 0 (6,236,504) 0 0 0 (6,236,504)

Total Residual 0 0 0 0 0 0 0 305,588,692 0 0 0 305,588,692

Unleveraged Net Cash Flow (21,323,943) (69,496,471) (72,416,598) (74,078,719) 859,197 15,477,427 16,021,360 322,139,605 0 0 0 117,181,859

Construction Financing

Loan Amount 0 31,551,930 64,805,309 60,570,501 11,338,763 0 0 0 0 0 0 168,266,502

Repayment 0 0 0 (56,857,754) (42,887,183) (45,650,231) (22,802,849) 0 0 0 0 (168,198,017)

Amortization 0 0 0 0 (41,054) 0 (27,432) 0 0 0 0 (68,485)

Interest Payments 0 (186,732) (3,598,431) (5,711,143) (4,392,211) (1,902,352) (190,252) 0 0 0 0 (15,981,121)

Financing Fees 0 (852,866) (643,924) (1,027,208) 0 0 0 0 0 0 0 (2,523,998)

Perm Financing

Loan Amount 0 0 0 55,138,933 60,810,463 47,091,891 35,045,994 0 0 0 0 198,087,281

Repayment 0 0 0 0 0 0 0 (188,218,637) 0 0 0 (188,218,637)

Amortization 0 0 0 (132,780) (1,217,967) (2,239,107) (3,018,197) (3,260,592) 0 0 0 (9,868,644)

Interest Payments 0 0 0 (459,215) (4,094,090) (7,252,586) (9,366,038) (9,499,912) 0 0 0 (30,671,841)

Financing Fees 0 0 0 (827,084) (912,157) (706,378) (525,690) 0 0 0 0 (2,971,309)

Refinance Fee 0 0 0 0 0 0 0 0 0 0 0 0

Total Debt Proceeds/Pymts 0 30,512,332 60,562,954 50,694,249 18,604,564 (10,658,763) (884,464) (200,979,141) 0 0 0 (52,148,268)

Leveraged Net CF (21,323,943) (38,984,140) (11,853,644) (23,384,470) 19,463,761 4,818,665 15,136,896 121,160,464 0 0 0 65,033,591

Internal Returns

Unleveraged IRR 8.3%

Leveraged IRR - Deal 10.5%

Equity Multiple - Deal 1.7x

Leveraged IRR - LP's 10.3%

Equity Multiple - LP's 1.7x 3

Example of Assumptions0 Apartments w/ 200,000 SF of Office and 5,000 SF of Retail

Timeline Residential Unit Mix 85% Efficient Growth Rate Expense Growth Office Rent Growth Resi Rent Growth ADU Rent Growth Retail Rent Growth

Commencement Date 8/31/18 Type Number of Units Average SF Monthly Rent Market Rent / SF Net SF Gross SF Year 0 0.00% 0.00% 0.00% 0.00% 0.00%

Predevelopment Period 22 Months Studio 0 0 0 0.00 0 0 Year 1 0.00% 2.00% 2.00% 2.00% 0.00%

Construction Months 12 Months 1 Bedroom 0 0 0 0.00 0 0 Year 2 0.00% 2.00% 2.00% 2.00% 0.00%

Completion Date 6/30/21 2 Bedroom 0 0 0 0.00 0 0 Year 3 0.00% 3.00% 3.00% 3.00% 2.00%

Residential Lease Up Period 6 Months 3 Bedroom 0 0 0 0.00 0 0 Year 4 0.00% 3.00% 3.00% 3.00% 2.00%

Refinance Date 12/31/22 4 Bedroom 0 0 0 0.00 0 0 Year 5 3.00% 3.00% 3.00% 3.00% 5.00%

Hold Period 84 Months Studio ADU 0 0 0 0.00 0 0 Year 6 3.00% 3.00% 3.00% 3.00% 5.00%

Sale Date 8/31/25 1 Bedroom ADU 0 0 0 0.00 0 0 Year 7 3.00% 3.00% 3.00% 3.00% 3.00%

2 Bedroom ADU 0 0 0 0.00 0 0 Year 8 3.00% 3.00% 3.00% 3.00% 3.00%

Basis Assumptions 3 Bedroom ADU 0 0 0 0.00 0 0 Year 9 3.00% 3.00% 3.00% 3.00% 3.00%

Total 16.1 Acre Land Acquisition 19,636,848 4 Bedroom ADU 0 0 0 0.00 0 0 Year 10 3.00% 3.00% 3.00% 3.00% 3.00%

Land % Associated with Development 22.50% 0 0 0.00 0 0 Year 11 3.00% 3.00% 3.00% 3.00% 3.00%

Land Acquisition 4,418,291 Year 12 3.00% 3.00% 3.00% 3.00% 3.00%

Acquisition Fee 290,487 Commercial Space Year 13 3.00% 3.00% 3.00% 3.00% 3.00%

2% Closing Costs 88,366 Type Net SF Market Rent / SF TI / SF Expenses / Sq Ft Efficiency Factor Gross SF Year 14 3.00% 3.00% 3.00% 3.00% 3.00%

PreDevelopment Costs 200,000 Retail 5,000 25 50 7.29 90% 5,556 Year 15 3.00% 3.00% 3.00% 3.00% 3.00%

Construction Costs 53,100,273 Office 200,000 25 50 7.29 85% 235,294 Year 16 3.00% 3.00% 3.00% 3.00% 3.00%

All in Basis 58,097,417 205,000 Total 240,850 Year 17 3.00% 3.00% 3.00% 3.00% 3.00%

Equity Required 20,334,096 Year 18 3.00% 3.00% 3.00% 3.00% 3.00%

Parking Assumptions Year 19 3.00% 3.00% 3.00% 3.00% 3.00%

Acquisition Financing Type Parking Spots Project Rent Tenant Rent Year 20 3.00% 3.00% 3.00% 3.00% 3.00%

Loan to Cost 0.00% Structured Parking - Owned 800 0 0 Year 21 3.00% 3.00% 3.00% 3.00% 3.00%

Loan Proceeds 0 Parking - Leased for Project 0 0 0 Year 22 3.00% 3.00% 3.00% 3.00% 3.00%

Interest Rate 4.25% Year 23 3.00% 3.00% 3.00% 3.00% 3.00%

Amortization Period Interest Only Revenue Assumptions Taxes No Abatement Year 24 3.00% 3.00% 3.00% 3.00% 3.00%

Loan Fees 0.5% % Pre Lease - Residential 35.00% Completion Value 58,097,417 Year 25 3.00% 3.00% 3.00% 3.00% 3.00%

Residential Vacancy - Stabilized 6.00% Tax Appraisal % of Value 90.00% Year 26 3.00% 3.00% 3.00% 3.00% 3.00%

Construction Financing Tax Appraisal Value 52,287,675 Year 27 3.00% 3.00% 3.00% 3.00% 3.00%

Loan to Cost 65.00% Commercial Leasing Assumptions Tax Rate 2.82% Year 28 3.00% 3.00% 3.00% 3.00% 3.00%

Loan Proceeds 37,763,321 Retail Pymt Start Date 6/30/21 Tax Year 1 6.13 Per SF 1,475,244 Year 29 3.00% 3.00% 3.00% 3.00% 3.00%

Loan Check Good Retail Lease Term 10 Years Tax Growth Rate - Post Construction 2.00% Year 30 3.00% 3.00% 3.00% 3.00% 3.00%

Fixed/Floating? Fixed Retail Vacancy - Stabilized 10.00% Sale Price 77,102,938 Year 31 3.00% 3.00% 3.00% 3.00% 3.00%

Fixed Interest Rate 5.00% Retail Broker Fee 5.00% Tax Appraisal % of Sale 90.00% Year 32 3.00% 3.00% 3.00% 3.00% 3.00%

Floating Interest Rate L + 3.00% Retail Expense Reimbursement 100.00% Tax Appraisal Value - Post Sale 69,392,644 Year 33 3.00% 3.00% 3.00% 3.00% 3.00%

Amortization Period 30 Years Retail Lease Up Period 1 Months Tax Rate - Post Sale 2.82% Year 34 3.00% 3.00% 3.00% 3.00% 3.00%

Interest Only Period 36 Months Retail % Pre Lease 100.00% Tax Year 8 1,957,844 Year 35 3.00% 3.00% 3.00% 3.00% 3.00%

Loan Fees 1.5% Office Pymt Start Date 6/30/21 Year 36 3.00% 3.00% 3.00% 3.00% 3.00%

Office Lease Term 10 Years Resi Expense Assumptions Fixed / Variable Per Unit Annual Year 37 3.00% 3.00% 3.00% 3.00% 3.00%

Permanent Financing Office Vacancy - Stabilized 10.00% Utilities Variable 0 0 Year 38 3.00% 3.00% 3.00% 3.00% 3.00%

Required DSCR 1.25 Office Broker Fee 5.00% Insurance Fixed 0 0

Months of Stabilized Data Needed 12 Months Office Expense Reimbursement 100.00% Marketing Fixed 0 0 Tax Schedule

Interest 5.00% Office Lease Up Period 6 Months Water & Sewer Variable 0 0 State Tax City Tax District Tax Total

Amortization 30 Years Office % Pre Leased 50.00% Contracts Fixed 0 0 1.43% 1.25% 0.14% 2.82%

Loan Fees 1.00% Property Management Fee 0 0.00%

Payroll Fixed 0 0

Disposition Assumptions Other Income Assumptions Per Unit Repairs and Maintenance Variable 0 0

Selling Costs 2.00% Pet Fees 0 Administrative Fixed 0 0

Exit Cap Rate - Residential 6.00% Amenity Fees 0 Landscaping Fixed 0 0

Exit Cap Rate - Retail 7.00% Other Fees 0 Other 1 Fixed 0 0

Exit Cap Rate - Office 7.00% Storage 0 Other 2 Fixed 0 0

Tax Abatement Cap Rate 6.50% Total 0 Other 3 Fixed 0 0

Other 4 Fixed 0 0

Waterfall Split Sponsor Fees Other 5 Fixed 0 0

Pref 10.00% Acquisition Fee 0.5% of All-In Basis Other 6 Fixed 0 0

Promote Post Pref 30.00% Acquisition Fee 0.0% of Purchase Price Other 7 Fixed 0 0

2nd IRR Hurdle 15.00% Asset Management Fee 1.50% of EGI Other 8 Fixed 0 0

Promote Post 2nd Hurdle 50.00% Refinance Fee 0.00% of Refi Total Other 9 Fixed 0 0

3rd IRR Hurdle 20.00% 0% Overhead Reimbursement 0 Capital Reserves Fixed 0 0

Promote Post 3rd Hurdle 50.00% 3% Development Fee 1,789,662

Deal Returns Construction Assumptions

Unleveraged IRR 10.1% Type Costs Per SF Gross SF Total Costs

Leveraged IRR - Deal 14.8% Residential Hard Cost 165 Per SF 0 0

Equity Multiple - Deal 2.0x Retail Hard Costs 150 Per SF 5,556 833,333

Leveraged IRR - LP's 13.5% Office Hard Costs 123 Per SF 235,294 28,968,927

Equity Multiple - LP's 1.8x Hard Cost Contingency 10% 2,980,226

TI Budget - Retail 50 Per SF 250,000

TI Budget - Office 50 Per SF 9,999,995

Brokerage Fee - Retail 74,252

Brokerage Fee - Office 3,028,878

Soft Costs 19 Per SF 240,850 4,500,000

Soft Costs Contingency 10% 450,000

Overhead Reimbursement 0

Development Fee 1,789,662

Parking Deck Cost to Build 15,000 Per Spot 194,286 12,000,000

City Parking Contribution 100% (12,000,000)

City Park Cost to Build 450,000

City Park Contribution 50% (225,000)

Total 435,135 53,100,273

4

Income & Expense ExampleT3 Income T12 Income

T12 Expenses T12 Expenses End of Year 1 End of Year 2

Actuals % of GPR Per Month Per Unit Adjusted Expenses % of GPR Per Month Per Unit Projection % of GPR Per Month Per Unit Projection % of GPR Per Month Per Unit

INCOME

GROSS POTENTIAL RENT

All Units at Market Rent 988,980 T3 82,415 $12,679 1,010,592 T12 84,216 $12,956 1,032,975 86,081 $13,243 1,092,080 91,007 $14,001

Gain (Loss)-to-Lease $0 T3 0.00% $0 $0 $0 T12 0.00% $0 $0 $0 0.00% $0 $0 $0 0.00% $0 $0

GROSS POSSIBLE RENT 988,980 82,415 $12,679 1,010,592 84,216 $12,956 1,032,975 86,081 $13,243 1,092,080 91,007 $14,001

Physical/Economic Loss

1 Physical Vacancy $22,478 T3 2.27% $1,873 $288 $57,847 T12 5.72% $4,821 $742 $57,847 5.60% $4,821 $742 $61,156 5.92% $5,096 $784

2 Bad Debts $13,217 T3 1.34% $1,101 $169 $7,231 T12 0.72% $603 $93 $7,231 0.70% $603 $93 $7,645 0.74% $637 $98

3 Discounts $17,400 T3 1.76% $1,450 $223 $3,615 T12 0.36% $301 $46 $3,615 0.35% $301 $46 $3,822 0.37% $319 $49

4 Concessions Allowance $3,468 T3 0.35% $289 $44 $3,615 T12 0.36% $301 $46 $3,615 0.35% $301 $46 $3,822 0.37% $319 $49

Total Physical/Economic Loss $56,563 5.72% $4,714 $725 $72,308 7.16% $6,026 $927 $72,308 7.00% $6,026 $927 $76,446 7.40% $6,370 $980

NET RENTAL INCOME $932,417 $77,701 $938,284 $78,190 $960,667 $80,056 $1,015,635 $84,636

Other Income

5 Application Fees $2,628 T3 0.27% $219 $34 $2,628 T12 0.26% $219 $34 $2,707 0.26% $226 $35 $2,788 0.27% $232 $36

6 Admin Fees $401 T3 0.04% $33 $5 $401 T12 0.04% $33 $5 $413 0.04% $34 $5 $425 0.04% $35 $5

7 Non Refundable Pet Fees $840 T3 0.08% $70 $11 $840 T12 0.08% $70 $11 $865 0.08% $72 $11 $891 0.09% $74 $11

8 NSF / Late Fees $10,469 T3 1.06% $872 $134 $10,469 T12 1.04% $872 $134 $10,783 1.04% $899 $138 $11,107 1.08% $926 $142

9 Unallocated Prepays $23,854 T3 2.41% $1,988 $306 $23,854 T12 2.36% $1,988 $306 $24,570 2.38% $2,047 $315 $25,307 2.45% $2,109 $324

10 Month to Month Fee $0 T3 0.00% $0 $0 $0 T12 0.00% $0 $0 $0 0.00% $0 $0 $0 0.00% $0 $0

11 Maintenance $0 T3 0.00% $0 $0 $0 T12 0.00% $0 $0 $0 0.00% $0 $0 $0 0.00% $0 $0

12 Utility Income $0 T3 0.00% $0 $0 $0 T12 0.00% $0 $0 $0 0.00% $0 $0 $0 0.00% $0 $0

13 Other $0 T3 0.00% $0 $0 $0 T12 0.00% $0 $0 $0 0.00% $0 $0 $0 0.00% $0 $0

14 Other 1 $0 T3 0.00% $0 $0 $0 T12 0.00% $0 $0 $0 0.00% $0 $0 $0 0.00% $0 $0

15 Other 2 $0 T3 0.00% $0 $0 $0 T12 0.00% $0 $0 $0 0.00% $0 $0 $0 0.00% $0 $0

16 Other 3 $0 T3 0.00% $0 $0 $0 T12 0.00% $0 $0 $0 0.00% $0 $0 $0 0.00% $0 $0

17 Other 4 $0 T3 0.00% $0 $0 $0 T12 0.00% $0 $0 $0 0.00% $0 $0 $0 0.00% $0 $0

18 Other 5 $0 T3 0.00% $0 $0 $0 T12 0.00% $0 $0 $0 0.00% $0 $0 $0 0.00% $0 $0

19 Other 6 $0 T3 0.00% $0 $0 $0 T12 0.00% $0 $0 $0 0.00% $0 $0 $0 0.00% $0 $0

Total Other Income $38,192 3.86% $3,183 $490 $38,192 3.78% $3,183 $490 $39,338 3.81% $3,278 $504 $40,518 3.92% $3,376 $519

EFFECTIVE GROSS INCOME $970,609 $80,884 $12,444 $976,476 $81,373 $12,519 $1,000,005 $83,334 $12,821 $1,056,152 $88,013 $13,540

Expenses

Real Estate Taxes

20 2018 Taxes Paid $75,554 T12 7.64% $6,296 $969 $75,554 T12 7.48% $6,296 $969 $77,821 7.53% $6,485 $998 $80,155 7.76% $6,680 $1,028

Total Real Estate Taxes $75,554 7.64% $6,296 $969 $75,554 7.48% $6,296 $969 $77,821 7.53% $6,485 $998 $80,155 7.76% $6,680 $1,028

21 Liability Insurance (Non Controllable) $13,601 T12 1.38% $1,133 $174 $13,601 T12 1.35% $1,133 $174 $14,009 1.36% $1,167 $180 $14,429 1.40% $1,202 $185

22 Utilities

Natural Gas $0 T12 0.00% $0 $0 $0 T12 0.00% $0 $0 $0 0.00% $0 $0 $0 0.00% $0 $0

Water & Sewer $25,546 T12 2.58% $2,129 $328 $25,546 T12 2.53% $2,129 $328 $26,312 2.55% $2,193 $337 $27,102 2.62% $2,258 $347

Trash Removal $16,104 T12 1.63% $1,342 $206 $16,104 T12 1.59% $1,342 $206 $16,587 1.61% $1,382 $213 $17,085 1.65% $1,424 $219

Electricity $6,454 T12 0.65% $538 $83 $6,454 T12 0.64% $538 $83 $6,648 0.64% $554 $85 $6,847 0.66% $571 $88

Telephone & Answering $1,008 T12 0.10% $84 $13 $1,008 T12 0.10% $84 $13 $1,038 0.10% $87 $13 $1,069 0.10% $89 $14

Electricity - Vacant $1,646 T12 0.17% $137 $21 $1,646 T12 0.16% $137 $21 $1,695 0.16% $141 $22 $1,746 0.17% $146 $22

Fire Alarm $13,618 T12 1.38% $1,135 $175 $13,618 T12 1.35% $1,135 $175 $14,027 1.36% $1,169 $180 $14,447 1.40% $1,204 $185

Total Utilities (Non Controllable) $64,376 6.51% $5,365 $825 $64,376 6.37% $5,365 $825 $66,307 6.42% $5,526 $850 $68,296 6.61% $5,691 $876

Total Non-Controllable Expenses $153,531 25.11% $12,794 $1,968 $153,531 26.13% $12,794 $1,968 $158,137 26.12% $13,178 $2,027 $162,881 27.09% $13,573 $2,088

Contract Services

23 Total Apt. Turnover Expense $9,672 T12 0.98% $806 $124 $9,672 T12 0.96% $806 $124 $9,962 0.96% $830 $128 $10,261 0.99% $855 $132

24 Contractors $13,771 T12 1.39% $1,148 $177 $13,771 T12 1.36% $1,148 $177 $14,184 1.37% $1,182 $182 $14,610 1.41% $1,217 $187

Total Contract Services $23,443 2.37% $1,954 $301 $23,443 2.32% $1,954 $301 $24,146 2.34% $2,012 $310 $24,871 2.41% $2,073 $319

25 Advertising & Promotion $13,649 T12 1.38% $1,137 $175 $13,649 T12 1.35% $1,137 $175 $14,058 1.36% $1,172 $180 $14,480 1.33% $1,207 $186

26 General & Administrative $8,204 T12 0.83% $684 $105 $8,204 T12 0.81% $684 $105 $8,450 0.82% $704 $108 $8,704 0.80% $725 $112

27 Repairs & Maintenance $22,411 T12 2.27% $1,868 $287 $22,411 T12 2.22% $1,868 $287 $23,083 2.23% $1,924 $296 $23,776 2.18% $1,981 $305

28 Payroll & Benefits $41,026 T12 4.15% $3,419 $526 $41,026 T12 4.06% $3,419 $526 $42,257 4.09% $3,521 $542 $43,524 3.99% $3,627 $558

29 Management Fee $39,439 T12 3.99% $3,287 $506 $39,439 T12 3.90% $3,287 $506 $35,000 3.39% $2,917 $449 $36,965 3.38% $3,080 $474

30 Appliance Rentals $20,002 T12 2.02% $1,667 $256 $20,002 T12 1.98% $1,667 $256 $20,602 1.99% $1,717 $264 $21,220 1.94% $1,768 $272

31 Other $0 T12 0.00% $0 $0 $0 T12 0.00% $0 $0 $0 0.00% $0 $0 $0 0.00% $0 $0

32 Other 1 $0 T12 0.00% $0 $0 $0 T12 0.00% $0 $0 $0 0.00% $0 $0 $0 0.00% $0 $0

33 Other 2 $0 T12 0.00% $0 $0 $0 T12 0.00% $0 $0 $0 0.00% $0 $0 $0 0.00% $0 $0

34 Other 3 $0 T12 0.00% $0 $0 $0 T12 0.00% $0 $0 $0 0.00% $0 $0 $0 0.00% $0 $0

35 Other 4 $0 T12 0.00% $0 $0 $0 T12 0.00% $0 $0 $0 0.00% $0 $0 $0 0.00% $0 $0

36 Other 5 $0 T12 0.00% $0 $0 $0 T12 0.00% $0 $0 $0 0.00% $0 $0 $0 0.00% $0 $0

37 Other 6 $0 T12 0.00% $0 $0 $0 T12 0.00% $0 $0 $0 0.00% $0 $0 $0 0.00% $0 $0

38 Capital Reserves $0 T12 0.00% $0 $0 $0 T12 0.00% $0 $0 $0 0.00% $0 $0 $0 0.00% $0 $0

Total Controllable Expenses $168,174 17.00% $14,015 $2,156 $168,174 16.64% $14,015 $2,156 $167,597 16.22% $13,966 $2,149 $173,540 16.02% $14,462 $2,225

TOTAL EXPENSES $321,705 42.11% $26,809 $4,124 $321,705 42.77% $26,809 $4,124 $325,734 42.34% $27,145 $4,176 $336,421 43.11% $28,035 $4,313

NET OPERATING INCOME $648,904 65.61% $54,075 $8,319 $654,771 64.79% $54,564 $8,832 $674,270 65.27% $56,189 $9,067 $719,731 65.90% $59,978 $9,688

Year 1 (Pro-Forma)Current Trailing Year 0 (Projected Going-In) Year 2 (Pro-Forma)

5

Example of Value Summary

Anticipated Value Range Cap Rate

Price Per Unit Per RSF Trailing Year 0 Year 1 (All-In)

$13,360,000 $171,282 $195 4.86% 4.90% 5.39% 4.14%

$12,860,000 $164,872 $187 5.05% 5.09% 5.60% 4.71%

$12,610,000 $161,667 $184 5.15% 5.19% 5.71% 5.05%

Target Value $12,360,000 $158,462 $180 5.25% 5.30% 5.82% 5.45%

$12,110,000 $155,256 $176 5.36% 5.41% 5.94% 5.91%

$11,860,000 $152,051 $173 5.47% 5.52% 6.07% 6.46%

$11,610,000 $148,846 $169 5.59% 5.64% 6.20% 7.13%

Purchase Price Analysis Assumptions Rent Summary (Monthly) Property Description

Target Purchase Price $12,360,000 Analysis Period 10 Years Avg. Current Market Rent 1,450

Per Unit $158,462 Analysis Start Date Jul-18 Per RSF $7.90

Per RSF $180 Avg. Terminal Cap Rate 5.00% Avg. Effective Rent 1,057

Cost of Sale 5.00% Per RSF $5.76

Acquisition / Additional Costs Avg Projected Rent 236

Purchase Price $12,360,000 Acquisition Financing Summary Per RSF $1.29

Closing Costs $0 Loan Amount $9,270,000 Total Expenses Summary (Per Unit)

Loan Fee $92,700 Loan to Value (LTV) 75.00% Trailing 4,124

Other $0 Loan to Cost (LTC) 75.00% Year 0 4,124

Total Acquisition Costs $12,452,700 Existing or Proposed Loan Proposed Year 1 4,176

Origination Date Jul-18 NOI Summary

Total ("All-In") Cost Interest Rate 5.13% Trailing 648,904

Total Cost $12,452,700 Years Interest Only 3.00 Year 0 654,771

Per Unit $159,650 Trailing DSCR (Fully Amortizing) Year 1 674,270

Per RSF $181 Year 0 DSCR (Fully Amortizing) Economic Loss Summary

Equity Required $3,182,700 Current Economic Loss 56,563

Equity to Value 25.75% Year 0 Economic Loss 72,308

Equity to Cost 25.56% 10-Year Projected Avg. 84,893

Property Name

Address

City, State

Construction Type

County

Year Built

Property Type

Rentable Sq Ft

Avg. Unit Size (RSF)

Number of Units 78

68,640

880

Roof Type

Lot Size

4.42%

4.76%

5.17%

5.65%

6.23%

5.79%

6.24%

6.78%

7.41%

8.17%

Current Ownership

Current Mgmnt

5.22%

5.63%

6.11%

6.68%

7.37%

Cash-on-Cash Return

Year 0Trailing

4.28%

4.87%

Year 1

4.75%

5.40%

3.62%

4.12%

Year 4 (Fully Amortizing)

6

Example of Unit Mix Summary

Unit Type No. of Units Rentable SF Total SF Rent / Units Per SF Total Monthly Rent / Unit Total Monthly No. of Units Rent / Unit Per SF Total Monthly

1 BED 1 BATH 54 Units 800 SF 43,200 SF $1,000.00 $1.25 SF $54,000 $979 $52,844 54 Units $1,030 $1.29 SF $55,620

2 BED 2 BATH 24 Units 1,060 SF 25,440 SF $1,259.00 $1.19 SF $30,216 $1,232 $29,571 24 Units $1,297 $1.22 SF $31,122

Totals / Wtd. Averages 78 Units 880 SF 68,640 SF $1,079.69 $1.22 SF $84,216 $1,057 $82,415 78 Units $1,112 $1.27 SF $86,742

Per SF

Current Market Rent Average Effective

$1.22 SF

$1.16 SF

Pro Forma Projection

69%

31%

Unit Distribution

1 BED 1 BATH

2 BED 2 BATH

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

1 BED 1 BATH 2 BED 2 BATH

Ren

t P

er M

on

th

Unit Market Rent

Market Avg Effective Pro Forma Projection

100%

0%

0%

Current Occupancy

Occupied Units Vacant Units Model Units

7

Example of Waterfall

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Aug-18 Nov-18 Feb-19 May-19 Aug-19 Nov-19 Feb-20 May-20 Aug-20 Nov-20 Feb-21 May-21 Aug-21 Nov-21 Feb-22 May-22 Aug-22 Nov-22 Feb-23 May-23 Aug-23

LEVERAGED NET CASH FLOW 122.1% IRR (4,796,454) (75,000) (75,000) (50,000) 0 0 135,151 505,477 747,678 770,283 762,925 762,925 40,026,884 149,029 141,524 141,524 141,524 177,713 170,057 170,057 32,385,689

15.45x Multiple

EQUITY CASH FLOW (4,796,454) (75,000) (75,000) (50,000) 0 0 135,151 505,477 747,678 770,283 762,925 762,925 40,026,884 149,029 141,524 141,524 141,524 177,713 170,057 170,057 32,385,689

100% Distributions 0 0 0 0 0 0 135,151 505,477 747,678 770,283 762,925 762,925 40,026,884 149,029 141,524 141,524 141,524 177,713 170,057 170,057 32,385,689

100% Contributions (4,796,454) (75,000) (75,000) (50,000) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

LP Contributions 90.0% (4,316,809) (67,500) (67,500) (45,000) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

GP Contributions 10.0% (479,645) (7,500) (7,500) (5,000) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

First

100% to Equity until 10% IRR to LP 10% 100% 0 0 0 0 0 135,151 505,477 747,678 770,283 762,925 762,925 2,682,048 0 0 0 0 0 0 0 0

0% to GP Promote until 10% IRR to LP 0% 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Total split #1 distribution 0 0 0 0 0 0 135,151 505,477 747,678 770,283 762,925 762,925 2,682,048 0 0 0 0 0 0 0 0

LP Equity Distributioms 90.0% ` 0 0 0 0 0 0 121,636 454,929 672,910 693,255 686,632 686,632 2,413,843 0 0 0 0 0 0 0 0

GP Equity Distributions 10.0% 0 0 0 0 0 0 13,515 50,548 74,768 77,028 76,292 76,292 268,205 0 0 0 0 0 0 0 0

LP Cash Flow 10.0% (4,316,809) (67,500) (67,500) (45,000) 0 0 121,636 454,929 672,910 693,255 686,632 686,632 2,413,843 0 0 0 0 0 0 0 0

GP Cash Flow 10.0% (479,645) (7,500) (7,500) (5,000) 0 0 13,515 50,548 74,768 77,028 76,292 76,292 268,205 0 0 0 0 0 0 0 0

Remaining to be Distributed 0 0 0 0 0 0 0 0 0 0 0 0 37,344,836 149,029 141,524 141,524 141,524 177,713 170,057 170,057 32,385,689

Second

70% to Equity until 15% IRR to LP 15% 70% 0 0 0 0 0 0 0 0 0 0 0 805,672 0 0 0 0 0 0 0 0

30% to GP Promote until 15% IRR to LP 30% 0 0 0 0 0 0 0 0 0 0 0 0 345,288 0 0 0 0 0 0 0 0

Total split #2 distribution 0 0 0 0 0 0 0 0 0 0 0 0 1,150,960 0 0 0 0 0 0 0 0

LP Equity Distributioms 90.0% ` 0 0 0 0 0 0 0 0 0 0 0 0 725,105 0 0 0 0 0 0 0 0

GP Equity Distributions 10.0% 0 0 0 0 0 0 0 0 0 0 0 0 80,567 0 0 0 0 0 0 0 0

LP Cash Flow 15.0% (4,316,809) (67,500) (67,500) (45,000) 0 0 121,636 454,929 672,910 693,255 686,632 686,632 3,138,948 0 0 0 0 0 0 0 0

GP Cash Flow 32.2% (479,645) (7,500) (7,500) (5,000) 0 0 13,515 50,548 74,768 77,028 76,292 76,292 694,060 0 0 0 0 0 0 0 0

Remaining to be Distributed 0 0 0 0 0 0 0 0 0 0 0 0 36,193,876 149,029 141,524 141,524 141,524 177,713 170,057 170,057 32,385,689

Third

50% to Equity until 20% IRR to LP 20% 50% 0 0 0 0 0 0 0 0 0 0 0 890,910 0 0 0 0 0 0 0 0

50% to GP Promote until 20% IRR to LP 50% 0 0 0 0 0 0 0 0 0 0 0 0 890,910 0 0 0 0 0 0 0 0

Total split #2 distribution 0 0 0 0 0 0 0 0 0 0 0 0 1,781,819 0 0 0 0 0 0 0 0

LP Equity Distributioms 90.0% ` 0 0 0 0 0 0 0 0 0 0 0 0 801,819 0 0 0 0 0 0 0 0

GP Equity Distributions 10.0% 0 0 0 0 0 0 0 0 0 0 0 0 89,091 0 0 0 0 0 0 0 0

LP Cash Flow 20.0% (4,316,809) (67,500) (67,500) (45,000) 0 0 121,636 454,929 672,910 693,255 686,632 686,632 3,940,767 0 0 0 0 0 0 0 0

GP Cash Flow 64.8% (479,645) (7,500) (7,500) (5,000) 0 0 13,515 50,548 74,768 77,028 76,292 76,292 1,674,061 0 0 0 0 0 0 0 0

Remaining to be Distributed 0 0 0 0 0 0 0 0 0 0 0 0 34,412,056 149,029 141,524 141,524 141,524 177,713 170,057 170,057 32,385,689

50% to Equity 50% 0 0 0 0 0 0 0 0 0 0 0 0 17,206,028 74,515 70,762 70,762 70,762 88,856 85,028 85,028 16,192,844

LP Equity Distributioms 90.0% 0 0 0 0 0 0 0 0 0 0 0 0 15,485,425 67,063 63,686 63,686 63,686 79,971 76,526 76,526 14,573,560

GP Equity Distributions 10.0% 0 0 0 0 0 0 0 0 0 0 0 0 1,720,603 7,451 7,076 7,076 7,076 8,886 8,503 8,503 1,619,284

50% to GP Promote 50% 0 0 0 0 0 0 0 0 0 0 0 0 17,206,028 74,515 70,762 70,762 70,762 88,856 85,028 85,028 16,192,844

Total LP 87.3% 8.41x (4,316,809) (67,500) (67,500) (45,000) 0 0 121,636 454,929 672,910 693,255 686,632 686,632 19,426,192 67,063 63,686 63,686 63,686 79,971 76,526 76,526 14,573,560

Total GP 261.7% 78.82x (479,645) (7,500) (7,500) (5,000) 0 0 13,515 50,548 74,768 77,028 76,292 76,292 20,600,692 81,966 77,838 77,838 77,838 97,742 93,531 93,531 17,812,129

8