Retreat at Stone Mountain

Disclaimer

The information contained in this overview and initial plan is

considered confidential and is solely for the use of prospective

investors to determine the level of interest in the Retreat at

Stone Mountain apartment complex located in Atlanta, GA.

While the information contained in this overview, plan and

model has been compiled from various sources, and we believe

it to be reliable based on the data used but neither Ben Suttles,

Feras Moussa, or Mark Kenney or its representatives make any

representation or warranties as to the accuracy or

completeness herein. All financial information and projections

are provided for reference only and are based on assumptions

relating to the general economy, market conditions, and other

factors beyond our control. All prospective investors are

encouraged to conduct their own independent due diligence

investigation, review, financial projections, and consult with their

legal, tax, and other professional advisors before making an

investment decision.

Meeting Agenda

• Executive Summary

• Market Overview

• Property Characteristics

• Business Plan

• Next Steps

• Q&A

Sponsor Team

Ben Suttles

Managing Member

Feras Moussa

Managing Member

Mark Kenney

Managing Member

Ben is an entrepreneur having owned half a

dozen companies with revenues at $10MM per

year. He has helped syndicate 5 multifamily

projects, totaling close to 800 doors and a

$40MM portfolio value. He recently sold his first

syndication for over a 300% return in less than

two and half years, and has raised over $10MM

in his career for various real estate projects.

Feras is a serial entrepreneur with a tech

background. Feras formerly worked as a

Program Manager at Microsoft, and is now

focused on Multi-Family investing. Feras owns

and manages a rental portfolio of 4-plexs,

single-family homes, and multiple condos, and

has closed over 500 units and $25MM in

Multifamily acquisitions.

Mark has a passion for real estate and has

been investing in real estate for over 20

years and currently owns over 4000 units.

Mark purchased his first real estate property

when he was 23 years old. He has also

raised millions of dollars to purchase

properties.

Sponsor Team

Josh Benporat

Co-Sponsor

David Gerber

Co-Sponsor

Juan Vargas

Co-Sponsor

Josh grew up in Dallas, however after making the

move to Houston in 2012 he proudly calls this city his

home. Josh has over a decade of experience in sales

and is a licensed attorney in the state of Texas. After

discovering his passion for commercial real estate

two years ago he shifted his focus to multifamily

investing and the rest is history.

With more than 25 years experience in financial services,

David was constantly surprised how many clients and

colleagues limited their portfolios to stocks, bonds, and

cash. Too many failed to diversify sufficiently into direct

real estate. For good reason! Even passive investments

require a lot of upfront due diligence, even if you can

access deals. David founded Cove Investments to help

individual investors access direct, passive real estate

opportunities, with taxable funds or in their retirement

accounts!

Juan has been actively engaged in all aspects of

real estate sales, investment, management,

financing and construction for more than ten years.

He is a licensed commercial agent and has

experience with residential as well as multi-

residential, including owning 4 single family homes

and owning and operating a 32 unit multifamily

property in the Houston MSA. He is a KP in 90

multifamily units in Atlanta and has also invested

passively in 321 multifamily units. Juan was raised

with strong family values and is known for his

unique ability to uncover apartment investment

deals with value add potential.

16%+

Average Annualized Returns

~100%

6 Year Return

$950k

Capex Improvements

Executive Summary

Location Management High-Demand

North ATL location which allows

residents to enjoy easy access to

I-285 (204,000 vehicles per day),

which facilitates quick commutes

to major metro employers.

Out of State institutional

owners who had “hands off”

management style. Provence

managed deal across the

street for years

Current rents are low

$0.70s/ft. Underwritten

at $0.82/ft. While

Market average is high

$0.80s/ft and into the

90’s.

Why Atlanta and Retreat at Stone Mountain

• Built in 1983, Retreat at Stone Mountain apartments feature quality construction elements

including pitched roofs, covered exterior breezeways, washer/dryer connections, and low-

maintenance brick and vinyl exteriors.

• Nearby competitors of similar age receive average rents that are $175 to $300 higher than

Retreat at Stone Mountain’s average market rent.

• Atlanta is expected to add 43,200 jobs in the next twelve months. MPF’s forecast calls for

increases in organic rent growth of +3.3% over the next year

• Home to nearly 5.9 million residents, Metro Atlanta is the largest metro in Georgia and the

ninth-largest metro area in the United States.

• Greater Atlanta’s population is forecast to grow 9.6% over the next five year’s surpassing

6.4 million residents

Market Overview

The Atlanta Metropolitan Statistical Area’s

total population now exceeds 5.9 million

people and has grown 79% since 1990,

making it the nation’s ninth-largest MSA and

one of its fastest growing.

• Atlanta is expected to add 43,200 jobs in

the next twelve months.

• Top 5 projected job growth metro through

2020.

• The massive 29-county region is also

home to 15 Fortune 500 companies, 66

institutions of higher learning, and the

busiest airport in the world in terms of

annual passengers.

Apartment Market Overview

SUBMARKET OVERVIEW

• Retreat is located within one of the top

performing submarkets in the Atlanta MSA.

• The Stone Mountain submarket saw a 5.5%

annual rent growth in Q2 2018. This rent

growth is a result of no new supply in the

area and the submarket’s proximity to

Atlanta.

• Supply-demand imbalance fuels submarket

fundamentals, bolstering property

performance trends and indicating strong

future organic growth

Year 1 projections are $916/unit

Nearby Entertainment

Stone Mountain Park - Its centerpiece is the

world’s largest exposed piece of granite and is

the number one tourist attraction in Georgia.

Visitors can travel to the summit and explore

the park’s 3,200 acres of lakes and woodlands

which features, boat rides, adventure and

climbing areas, plantation, Civil War museum,

laser show, and carillon.

Northlake Mall - 1.0 million SF is anchored by

Macy’s, Sears, and JCPenney, and also has more

than 100 other retailers.

The Fernbank Museum of Natural History- 8

million dollar exhibit which includes dinosaur

skeletons and an IMAX theater.

East Lake Golf Club - a private golf club that is the

oldest golf courses in the city of Atlanta.

North Dekalb Mall - is a 635,000 SF center of

shopping, dining, and entertainment destinations.

Wade-Walker- is DeKalb’s largest park and

recreational facility. The park features baseball,

softball, soccer, tennis, as well as street hockey. The

park also provides a swimming pool, playgrounds,

picnic areas, pavilions, a lake, and walking trails.

Nearby Entertainment

Stone Mountain Park Northlake Mall East Lake Golf Club

Retreat at Stone Mountain

Nearby Employers

Marta Rail

DECATUR

MIDTOWN

Emory University and CDC HQ

GSU Perimeter

College

Memorial Bend

H a m b r i c k R o a d

Retreat at Stone Mountain

Property Summary

1983

212

238,140

1,123

19.7

95%

400 Ashley Place,

Stone Mountain, GA

30083 Address

Year Built

Units

Total SF

Avg Unit Size

Land Size (acres):

Physical Occupancy

• Negotiated off market. Purchased at less than $67k/door.

• Property is well kept, but not well managed. There is both a

management and value-add play.

• 1983-built asset features desirable construction features

including brick and pitched roofs.

• The asset features 100% two-and three-bedroom spacious

roommate-style floorplans (averaging 1,123 SF).

• Market-supported organic rent increase based on rent comp set.

• Had 6 fire units recently, these were rehabbed nicely and were

quickly leased up for a $100 premium

• Property next door is a 100% replica of property, same builder.

Next door property has rents in the $0.90s/ft.

• 100%+ total return in 6 years, on conservative underwriting,

with 8 pref and 75/25 split.

Highlights

Floor Plans

T WO BEDROOM / O N E BATH GARDEN 1,029 Square Feet

T WO BEDROOM / T WO BATH GARDEN 1,058 Square Feet

T WO BEDROOM / T WO BATH GARDEN 1,096 Square Feet

Floor Plans

THREE BEDROOM / TWO BATH G AR DEN 1,278 Square Feet

THREE BEDROOM / TWO BATH G AR DEN 1,310 Square Feet

Property Characteristics- Interiors

Upgraded unit

Property Characteristics - Interiors

Classic Unit

Property Characteristics- Exteriors

Property Characteristics - Exteriors

Property Amenities

• Swimming Pool

• Gated Access

• Office

• Two Playgrounds

• Picnic Areas

• Sport Court

• Washer/Dryer Connections in all units

Property Amenities

The Opportunity Loan Type

Traditional Agency Debt

(Fannie Mae)

Hunt Mortgage – sponsors

have other properties with the

same lender

30 year amortization

# Units 212

Purchase Price $14,200,000

Price/Unit $66,981

Earnest Money $200,000

1st Mortgage $9,800,000

Mortgage Terms 10 year

Interest Rate ~4.40%

Interest Only 4 Years

Rehab Budget ~$950,000

Acquisition Fee 2%

Reserves/Additional

Rehab $100,000

Total Needed to Close $6,025,000

9-10%+ cash flow throughout the hold

100%+ total return in 6 years

Investment Projections

~16%+ average annualized return

Rent Comps

$917 $990

$1,055 $1,000

$1,065

$795

$0

$200

$400

$600

$800

$1,000

$1,200

The Haverly

at StoneMountain

(1308 sf)

Polo Club

(1,094 sf)

Wildwood at

StoneMountain

(1,060 sf)

The Life at

Clifton Glen(1,200 sf)

The Pointe

(1,055 sf)

Sterling

Chase(1,096 sf)

Two Bedrooms

$1,163

$1,070 $1,100

$1,275

$870

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

Polo Club

(1,300 sf)

Wildwood at

Stone Mountain(1,274 sf)

The Life at

Clifton Glen(1,500 sf)

The Pointe

(1,255 sf)

Sterling Chase

(1,310 sf)

Three Bedrooms

~$280 delta on average ~$210 delta on average

Sales Comparables

Property Name

Sale

Date

Units

Year

Built

Price

Price per

Unit

Address

City

Subj. Retreat at Stone

Mountain

- 212 1983 $14,200,000 $66,981 400 Ashley Place Stone Mountain, GA

1 Stanford Oaks Aug-18 202 1968 $19,000,000 $94,257 2035 Idlewood Road Tucker, GA

2 Rainbow Forest Aug-18 156 1972 $11,500,000 $73,718 3100 Rainbow Forest Circle Decatur, GA

3 Clifton Glen Jul-18 556 1972 $40,866,000 $73,500 500 Hambrick Road Stone Mountain, GA

4 Summit Grove Jun-18 64 1966 $4,800,000 $75,391 2340 Lawrenceville Highway Decatur, GA

5 Villas of Embry Hills Jun-18 124 1964 $12,000,000 $67,643 3317 Chamblee Tucker Road Atlanta, GA

6 Heritage Reserve Feb-18 210 1989 $14,200,000 $67,643 10 Creste Drive Decatur, GA

7 Azalea Ridge Jan-18 281 1969 $19,100,000 $68,000 3214 Valley Bluff Drive Doraville, GA

8 Cambridge Heights Dec-17 132 1989 $8,950,000 $67,803 6136 Hillandale Drive Lithonia, GA

9 Sonoma Ridge Nov-17 440 1986 $39,300,000 $89,318 4659 Dawson Boulevard Atlanta, GA

10 The Arbors Sep-17 140 1987 $12,300,000 $87,500 100 Arbor Circle Tucker, GA

11 Grove Mountain Park Apr-17 268 1989 $21,600,000 $80,637 1900 Glenn Club Drive Stone Mountain, GA

12 Lavista Crossing Jan-17 240 1969 $22,700,000 $94,688 3797 Lavista Road Tucker, GA

Total/Average 2,813 $226,316,000 $80,454

Management Professional Property Management – currently manage 8,000+ units in SE, with the majority in the ATL MSA; managed The Life at Clifton Glen, across the street, for several years until July 2018

Capex $950,000 in improvements to interiors and exteriors, and addition of various amenities, including paint, roofs, update office, and upgrade 100-150 units.

Property Improvements Improve signage of the property to give a modern feel, add new amenities such as a dog park and functional office/clubhouse, new pool furniture and establish clean, quality housing.

Business Plan

Increase NOI, Reduce Expenses Update strategic units, move rents to market and reduce expenses

Professional Management-

• Current owners are out of state & institutional and take a very “hands off”

style of ownership and management

• Provence Real Estate will manage the property for us upon takeover

• Provence currently manages 8000+ units total, & manage 900+ units for us

in Atlanta

• Toured the property, conducted lease audits, reviewed budgets and

projections

Estimated Rehab Budget Rehab

Roofs $150,000

Exterior Improvements $150,000

Dog Park/Pergola/BBQ Pits $25,000

Gate Repairs $15,000

Landscaping/Signage/Fencing $90,000

Interior upgrades $415,000

Total: ~$950,000

Rehab

Office/Clubhouse/Pool $25,000

Solar Screens $40,000

Other $40,000

Increase NOI

• Bring rents to market – High renter demand & limited supply

• Professional Property Management with years of experience in this pocket

• Update units to better standard in order to push rents to a premium

• Add amenities to attract premium rents and improve property look & feel

• Tighter management control of the asset helping streamline expenses

Proforma Table

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

Gross Rents $2,342,280 $2,412,548 $2,484,925 $2,534,623 $2,585,316 $2,637,022

Economic

Vacancy $421,610 $265,380 $273,341 $278,808 $284,385 $290,072

Other Income $231,000 $237,930 $245,068 $249,969 $254,969 $260,068

Net Income $2,151,670 $2,385,098 $2,456,651 $2,505,784 $2,555,900 $2,607,018

Operating

Expenses $1,088,000 $1,120,640 $1,154,259 $1,177,344 $1,200,891 $1,224,909

Capex

Reserves $53,000 $53,000 $53,000 $53,000 $53,000 $53,000

Net Operating

Income $1,010,670 $1,211,458 $1,249,392 $1,275,440 $1,302,008 $1,329,109

Assumptions Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

Rent Growth 3% 3% 2% 2% 2%

Expenses Growth 3% 3% 2% 2% 2%

Economic Vacancy 18% 11% 11% 11% 11% 11%

Projected Investor Return

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

Before Tax Cash Flow $531,628 $678,401 $704,818 $722,957 $589,833 $608,706

Cash on Cash Return 8.77% 11.21% 11.67% 11.98% 9.80% 10.13%

Total Return 32.53% 50.74% 67.21% 84.15% 101.61%

Average Annualized Return 8.77% 16.27% 16.91% 16.80% 16.83% 16.93%

Average Annualized Return 9.98% 10.53% 16.59% 16.60% 16.70% Sample Investment

($100,000) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

Cash-on-Cash Return $8,772 $11,213 $11,669 $11,983 $9,800 $10,126

Cumulative Cash-on-Cash $8,772 $19,985 $31,654 $43,637 $53,437 $63,563

Equity Gain on Sale - - - - - $38,046

Return of Capital - - - - - $100,000

Total Return $8,772 $19,985 $31,654 $43,637 $53,437 $201,609

All numbers below are net returns to investors – Net of Debt Service, 1.5% Asset Management Fee and 20% Sponsor Compensation

7% Exit Cap.

~15% total IRR

Post Acquisition Expectations

Monthly Reports Investors will receive a monthly report with highlights and financials

Quarterly Distributions Investors should expect distributions quarterly, starting at 6 months after acquisition

Communication Sponsorship team will keep communication channels open and communicate the good and bad

Next Steps

1. Review and complete Investment Packet, to be sent out February 4th

2. Sponsors review and accept investment packet

3. Wire investment to banking instructions prior to February 20th

The investment packet contains the Offering documents (PPM, Subscription Agreement, etc.).

Open to both sophisticated and accredited investors

Investments will be accepted on a first come first serve basis on the completion and

delivery of the offering documents, as well as wiring of funds.

Minimum Investment - $75,000

Will accept IRA Funds

Q&A

Have questions? Feel free to ask.