Lofts at Willow Creek OM by Jordan.Dickman

THE

LOFTS AT

WILLOW CREEK

BROKER CAPABILITIES & OPINION OF VALUE

SUBMITTED BY: LEAD AGENTS

Nicholas Andrews First Vice President Investments Cincinnati Office D. 513.878.7741 C. 614.402.66852 nicholas.andrews@marcusmillichap.com

Jordan Dickman First Vice President Investments Cincinnati Office D. 513.878.7735 C. 440.474.2269 jordan.dickman@marcusmillichap.com

NON-ENDORSEMENT & DISCLAIMER NOTICE CONFIDENTIALITY DISCLAIMER THIS IS A BROKER PRICE OPINION OR COMPARATIVE MARKET ANALYSIS OF VALUE AND SHOULD NOT BE CONSIDERED AN APPRAISAL. This information has been secured from sources we believe to be reliable, but we make no representations or warranties, express or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies.

NON-ENDORSEMENT NOTICE Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

CONTENTS

B R O K E R

06 | M & M AD VAN TA G E PL AT F ORM

C A P A B I L I T I E S &

2 0 | PR OPER T Y ANALY SIS

36 | PR OPER T Y F I NANCIAL S

4 6 | C OM BINED F I NANCIAL S

5 3 | PR OPER T Y C OM PAR ABLE S

O P I N I O N O F V A L U E

Dear Mr. Birkla, Offices Throughout the U.S. and Canada www.marcusmillichap.com

Thank you for allowing Marcus & Millichap the opportunity to provide a current Broker Pricing Opinion (Proposal) for The Lofts At Willow Creek (The “Property”), located in Beavercreek, Ohio. We are excited about the possibility to work with you on the marketing and sale of this asset. Our team has been extremely successful in executing similar transactions in the Cincinnati/Dayton MSA. Throughout the greater Dayton, Ohio area, we have an excellent track record of selling the “story” behind each asset we market. By identifying a select and diverse buyer pool, Marcus & Millichap will maximize value by creating the most competitive marketing situation fundamentally possible for the property.

Nicholas Andrews

Jordan Dickman

S E C T I O N

THE

LOFTS AT

WILLOW CREEK

BROKER CAPABILITIES & OPINION OF VALUE

M&M ADVANTAGE

2020

VA L U E O F R E C E N T LY C L O S E D

TRANSACTIONS

8 | M&M ADVANTAGE

$43.4 BILLION M&M ADVANTAGE | 9

PREMIER INVESTMENT SERVICES ACCESS TO THE INDUSTRY’S

LARGEST POOL OF PRIVATE & INSTITUTIONAL INVESTORS R E S U LT I N G I N T H E MOST EFFICIENT PROCESS OF

MATCHING BUYERS & SELLERS L O C A L LY, R E G I O N A L LY & N A T I O N A L LY.

10 | M & M A D V A N T A G E

Marcus & Millichap is the premier commercial real estate investment services firm in the United States. Founded in 1971 on a unique model that matches each property with the largest pool of pre-qualified investors, we leverage nearly five decades’ worth of experience and relationships to handle all of your commercial real estate needs. Our team of more than 2,000 professionals in the U.S. and Canada focuses exclusively on real estate investment sales, financing, research, and advisory services.

FOUNDED IN 1971 ON A UNIQUE METHODOLOGY

LARGEST POOL OF PRE-QUALIFIED INVESTORS IN THE INDUSTRY

MOVES CAPITAL ACROSS OUR NETWORK OF INVESTMENT PROFESSIONALS

W I T H AN E X C LU S I V E F O C U S O N R E AL E S TAT E I N V E S TME N T S ALE S , FI N AN C I N G , RE S E AR C H, AN D AD V I S O R Y S E R V I C E S

MORE THAN 2,000 INVESTMENT PROFESSIONALS IN THE U.S. & CANADA

NATIONAL PLATFORM WITH LEADING RESULTS 8 0 + O F F I C E S T H R O U G H O U T T H E U N I T E D S TAT E S & C A N A D A

#1 U.S. brokerage in number of transactions Marcus & Millichap is the premier commercial real estate investment services firm in the United States. Founded in 1971 with a unique model that matches each property with the largest pool of pre-qualified investors, we leverage nearly five decades of experience and relationships to handle all your commercial real estate needs. Our team of more than 2,000 professionals in the United States and Canada focuses exclusively on real estate investment sales, financing, research and advisory services.

9,726 Transactions Closed in 2019

4.84

Transactions closed Every Business Hour

MOVING CAPITAL. MAXIMIZING VALUE.

1031 EXCHANGE LEADER We execute more tax-deferred exchanges than any other firm in the United States (32% of total transactions), and our market share is a direct benefit to clients. Over the years, we have developed the skills and expertise to maximize value and meet sensitive timelines required in a 1031 Exchange. With billions of dollars of commercial real estate exclusively listed with us at any time, motivated exchange buyers seek out Marcus & Millichap for quality investment opportunities. Through our industry-leading inventory, we deliver the best of both worlds – we maximize the value of your asset through our unparalleled marketing. We then help identify appropriate upleg options to execute a successful tax deferral acquisition.

M & M A D V A N T A G E | 11

THE MARCUS & MILLICHAP ADVANTAGE AT MARCUS & MILLICHAP, WE TAILOR OUR INVESTMENT STRATEGIES TO MEET THE UNIQUE NEEDS AND GOALS OF EACH CLIENT. TO BEST SERVE OUR CLIENTS AND TO MAXIMIZE VALUE, WE COMBINE OUR COLLABORATIVE CULTURE WITH THE WORLD’S MOST ADVANCED TECHNOLOGY TO CREATE THE INDUSTRY’S MOST POWERFUL PROPRIETARY MARKETING SYSTEM.

REAL ESTATE INVESTMENT SALES

12 | M & M A D V A N T A G E

FINANCING

RESEARCH

Largest commercial real estate brokerage firm in the country, with specializations in all major property types and more than 2,000 professionals collaborating at every stage

Superior capital market expertise, precisely managed financing, and unparalleled access to the most competitive rates, terms, and capital sources through MMCC

Provides clients with the latest local and national market trends based on real-time data to create optimal positioning, pricing, and marketing strategies

Access to the industry’s largest inventory of quality investment opportunities

Prominent capital market relationships with commercial banks, secured lenders, debt and equity funds, life insurance companies, and private and public funds

Industry’s most indepth understanding of a variety of property types in numerous local and national markets,with more than 1,000 research products produced annually

ADVISORY SERVICES

Comprehensive advisory and consulting services to give you buy-sellhold decisions based on real-time market knowledge and research Maximizes value for our clients in each transaction and shapes long-term portfolio strategies

MARCUS & MILLICHAP C A PA B I L I T I E S

A WIDE RANGE OF CAPABILITIES WITH A PROVEN E XECUTION PR OCE S S AND DE C ADE S OF SUCCESS ENSURES OUR CLIENTS WITH THE BEST RESULTS

• Investment Sales and Product Specialization • Largest Collaborative Investment Sales Force

47%

• Local Submarket Client Coverage • Industry Leading Technology Platform • Real-Time Access to Transaction Data • Access to Competitive Financing • Largest Pool of Exclusive Inventory

PERFECTED PROCESS-DRIVEN EXECUTION

TRANSACTIONS CLOSED WITH OUT-OF-STATE CAPITAL IN 2019

• Pricing, Marketing, and Positioning Strategy to Drive Competitive Bidding • Timeline-Driven Escrow Management to Mitigate Risk • Transaction Execution for 1031 Exchange Candidates

M & M A D V A N T A G E | 13

INVESTMENT OPTIONS AND OPPORTUNITIES

The success of Marcus & Millichap is based on our collaborative culture of information sharing across our network of more than 2,000 investment professionals, which maximizes value for each of our clients. Working with a unique platform that is antithetical to the concept of “pocket listings,” our investment professionals share all listings with the entire Marcus & Millichap team. Each professional specializes in a property type and has a database of local properties and owners, which is leveraged in every client assignment. Because each local

2,021 INVESTMENT PROFES SIONAL S

agent specializes in a single product type in a specific geographic region, our clients have exposure across the U.S. and Canada with every investment.. Our foundation of information sharing maximizes pricing for our clients and gives us the largest inventory of any firm in the industry.

THE SIZE AND ACCE S SIBILIT Y OF OUR INVENTORY ENABLE S YOU TO SELL YOUR PROPERT Y AND QUICKLY MOVE INTO ANOTHER PROFITABLE INVE STMENT.

14 | M & M A D V A N T A G E

$43.4B VALUE OF RECENTLY CLOSED TRANSACTIONS

3,859 RETAIL 3,378 MULTI HOUSING

GAIN ACCESS TO THE NATION’S LARGEST E XCLUSIVE INVENTORY OF PROPERTIES FOR ALL PRODUCT T YPES

673 OFFICE 424

INDUSTRIAL

353 LAND

9,726

277 HOSPITALITY

E X C LU S I VE LI S TI N G S

271 MIXED-USED/OTHER 227 SELF-STORAGE 170 MANUFACTURED HOUSING 94 SENIOR HOUSING

M & M A D V A N T A G E | 15

ADVISORY SERVICES ACROSS THE OWNERSHIP LIFE CYCLE Whether you’re looking to buy, sell, refinance, or hold, Marcus & Millichap leverages real-time market research to assess local and

MANAGE & OPERATE

DISPOSITION & EXCHANGE

ACQUISITION

INVESTOR CONCERNS

• Is holding my asset the most

• Is now the right time to sell?

• When is the right time to buy?

• How can I leverage the capital

• What investment opportunities are

profitable choice in this market? • How can I best take advantage

markets to maximize my results?

available for my consideration?

of the capital markets to maximize my returns?

• How do I optimize my position via a disposition?

• What are the risks in the current market?

• Based on my investment risk tolerance and objectives, what opportunities should I consider?

• What alternatives and associated

• What are my financing options?

investment returns would I have in the event of a sale?

• How should I position my

• How will an acquisition impact my portfolio’s returns?

portfolio for potential changes in market conditions?

national trends, with specialized focus on individual property types. Backed by the collaborative culture of industry experts, your local investment professional will walk you through each phase of your investment strategy.

MARCUS & MILLICHAP’S SOLUTIONS

• Strategic “hold” analysis

• Value and market positioning

• Pre-acquisition analysis

• Refinance and capitalization options • Quarterly investment return analysis • Ongoing market and submarket research • Ongoing product-specific research

16 | M & M A D V A N T A G E

analysis • Financial investment analysis • Disposition buyer financing • Market and submarket research • New acquisition financing • Product-specific research • 1031 exchange investment alternatives analysis

MARCUS & MILLICHAP

CAPITAL CORPORATION CAPABILITIES MMCC—our fully integrated, dedicated financing arm—is committed to providing superior capital market expertise, precisely managed execution, and unparalleled access to capital sources, providing the most competitive rates and terms.

W HY MMC C ?

We leverage our prominent capital market relationships with commercial banks, life insurance companies, CMBS, private and public debt/equity funds, Fannie Mae, Freddie Mac, and HUD to provide our clients with the greatest range of financing options.

Optimum financing solutions to enhance value

Our dedicated, knowledgeable experts understand the challenges of financing and work tirelessly to resolve all potential issues for the benefit of our clients.

Enhanced control through MMCC’s ability to qualify investor finance contingencies

Enhanced control through quickly identifying potential debt/equity sources, processing, and closing buyer’s finance alternatives

Enhanced control through MMCC’s ability to monitor investor/due diligence and underwriting to ensure timely, predictable closings

CLOSED 1,944 DEBT AND EQUITY FINANCINGS IN 2019

NATIONAL PLATFORM OPERATING WITHIN THE FIRM’S BROKERAGE OFFICES

$7.18 BILLION TOTAL NATIONAL VOLUME IN 2019

ACCESS TO MORE CAPITAL SOURCES THAN ANY OTHER FIRM IN THE INDUSTRY

M & M A D V A N T A G E | 17

EXECUTING TODAY. PLANNING FOR THE FUTURE.

Our cutting-edge market research helps us advise our clients of existing asset performance and future opportunities.

Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this advertisement. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for informational purposes only. The information contained in this report was obtained from sources deemed to be reliable. Diligent efforts were made to obtain accurate and complete information; however, no representation, warranty or guarantee, express or implied, may be made as to the accuracy or reliability of the information contained herein. Note: Metro-level employment growth is calculated based on the last month of the quarter/year. Sales data includes transactions valued at $1,000,000 and greater unless otherwise noted. This is not intended to be a forecast of future events and this is not a guaranty regarding a future event. This is not intended to provide specific investment advice and should not be considered as investment advice. *Source: CoStar

S E C T I O N

THE

LOFTS AT

WILLOW CREEK

BROKER CAPABILITIES & OPINION OF VALUE

PROPERTY ANALYSIS

PROPERTY SUMMARY 2621 Hibiscus Way & 3667 Park Overlook Drive Beavercreek, OH 45431

335,279 RE N TABLE S Q UARE FE E T

325 TOTAL UNI T S

22 | T H E L O F T S A T W I L L O W C R E E K P R O P E R T Y A N A L Y S I S

2009/2012 YE AR B UILT

#1 Bedrooms

140

#2 Bedrooms

185

# Stories

% Leased

100%

Land Area (Acres)

22.42

Density (Units / Acre)

14.50

INVESTMENT HIGHLIGHTS

T H E L O F T S AT W I L L O W C R E E K A 325-unit apartment complex in the hyper-growth Beavercreek submarket of Dayton, Ohio Marcus & Millichap is pleased to exclusively offer for sale The Lofts at Willow Creek, a 325-unit apartment complex in the hyper-growth Beavercreek submarket of Dayton, Ohio. Built in 2009, the asset totals about 335,000 square feet on a 22.42-acre lot. The building features one- and two-bedroom apartments with an occupancy rate of 100%, averaging 789 square feet, and 1,215 square feet.

Dayton submarket

The asset is divided into two sections, L1 and L2, with L2 being recently renovated with hardwood flooring, granite countertops, new cabinetry and new paint throughout. Community amenities include a heated pool with sundeck, movie theatre, dog park, fitness center and a reservable clubhouse with a lounge. Unit amenities include over-sized closets, frieze carpeting, all black appliances, plantation wood-style blinds and private patios and balconies.

• The asset has upside potential by completing all unit upgrades and raising rents.

Recently renovated with upside 325-unit apartment complex in favorable

• Wright State University is located 6 minutes from the subject, with 12,000 students and 276 degree programs.

• 325-unit newly upgraded asset in Beavercreek, Ohio. • Select units recently renovated and include hardwood flooring, granite countertops, new cabinetry and new paint throughout. • Community amenities include heated pool with sundeck, movie theatre, dog park, fitness center and a reservable clubhouse with a lounge.

Located in Dayton’s highest profile retail submarket with nearby demand drivers • Within 5 minutes (1.4 miles) of The Mall at Fairfield with retailers include Macy’s, Dick’s Sporting Goods, H&M and JCPenney. • Within 14 minutes (8 miles) of The Greene, a mixed-use asset featuring offices, apartments and retail destinations including Apple, Forever 21, Lululemon and Nordstrom Rack.

B E A V E R C R E E K / D A Y T O N

• Wright Patterson Air Force Base is located within 15 minutes (6 miles) of the subject, with 20,000+ civilian employees and 7,000+ military personnel.

Dayton’s booming downtown neighborhood and thriving healthcare sector • Downtown Dayton, the region’s entertainment hub, is located within 15 minutes of the asset and offers professional sports, farmers markets, museums, nightlife and concert venues. • Dayton’s four largest medical employers, Premier Health Partners, Kettering Health Network, Children’s Hospital and CareSource, are all within 15 minutes of property and total 25,085 employees.

Dayton metro’s explosive apartment rent growth • Dayton metro’s apartment rental growth income has been explosive over the past 5 years. Between 2015 and 2020, apartment rents are projected to increase at an average of 4.7% year-over-year, from $764 to $855.

T H E L O F T S A T W I L L O W C R E E K P R O P E R T Y A N A L Y S I S | 23

2621 Hibiscus Way Beavercreek, OH 45431

The Lofts L2

24 | T H E L O F T S A T W I L L O W C R E E K P R O P E R T Y A N A L Y S I S

K R A

L R E

V RI

The Lofts L1

HIB

ISC

T H E L O F T S A T W I L L O W C R E E K P R O P E R T Y A N A L Y S I S | 25

T H E L O F T S AT W I L L O W C R E E K

AMENITIES

COMMUNITY Heated Pool with Sundeck and Jacuzzi

24-Hour Package Center

Poolside Fire Pit and Grills

Private Garages

On Demand Movie Theatre

Private Resident Storage

Reservable Clubhouse and Lounge

Complimentary Internet Café

Bike Storage

Nearby Walking Trails

Large Dog Park

Online Rent Payments

State of the Art Fitness Center

Online Maintenance Requests

Lounge with Indoor/Outdoor Fireplaces, Grill and Patio

Pet Friendly

Billiards Lounge

Sand Volleyball Court

Valet Dry Cleaning

Nearby Access to Interstate 675, 75, and 70

L1 UNITS

L2 UNITS

Over-sized Closets

Glass Top Range

Over-sized Closets in Select Units

10-Foot High Ceilings

Walk-in Closets in Select Units

Oversized Garden Tubs

Walk-in Closets in all Units

Plantation Style Wooden Blinds

Wide Plank Floors in Entryways

Walk-in Showers

Granite Counter-tops

All Black Appliances

Washer and Dryer Connections

Private Patio / Balcony

Washer and Dryer in all Units

Glass Top Range

12” Ceramic Tiles

Ceiling Fan in Master Bedroom

Contemporary Style Kitchen and Baths

Oversized Garden Tubs

Designed for Wall Mounted TV’s

Garbage Disposal

Over-sized Porcelain Tiles

Private Patio or Balcony

Multiple Color Options

Ice Maker in Freezer

Built-in Computer Niches

Ceiling Fan in Master Bath

Multiple View Options

ADA Accessible Apartments

Designed for Wall Mounted TVs

Garbage Disposal

Frieze Carpeting

Double Sink in Master Bath

42-inch Upper Cabinets

Ice Maker in Freezer

9-Foot High Ceilings

Modern Lighting

Frieze Carpeting

Multiple View Options

Plantation Wooden Style Blinds

Built-in Computer Niches

Double Sink in Master Bath

ADA Accessible Options

All Black Appliances

Laundry Connections

Single Piece Porcelain Vanities

Stainless Steel Appliances in Select Units

Luxury Kitchens and Baths

26 | T H E L O F T S A T W I L L O W C R E E K P R O P E R T Y A N A L Y S I S

SOP ANALYSIS

STRENGTHS

• Located in Beavercreek, one of the fastest growing submarkets in Dayton that is home to top notch employment from business such as Kettering Health, Synchrony Financial, Reynolds and Reynolds, L Brands, and Tenneco • Newer construction in a submarket with limited supply a phase 1 was constructed in 2009 and phase 2 was constructed in 2012 and these units are the only new supply added to Beavercreek within the last 10 years • Property already has proven upside as renovated units are already proving the ability to achieve higher rents • Overall property value will attract the interest of both private and institutional (interstate) buyers

OPPORTUNITIES

• Rental rates for phase 1 non-renovated units are currently below market providing the opportunity to push rents through unit upgrades • Loss-to-lease and concession burn off will provide the opportunity to recapture income • New tax levy being proposed that would implement an income tax of 1% which may cause property taxes in the future to be reassessed less aggressively, keeping property taxes at a moderate level • Requires new financing, interest rates continue to impress, buyers will have ample capital market flexibility

PERCEIVED LIABILITIES

• In today’s ever aggressive market, Debt Service Coverage Ratio, has become the most consistent constraint on market pricing. The asset will need adhere to a 1.2-1.25 DSCR on its adjusted trailing financials with an adjusted tax reassessment. Trailing numbers, which directly affect the maximum achievable price, will be underwritten to a different standard that will be dictated by each financial institution at their discretion. • Rental rates for phase 2 are near the top of the rental range in immediate area as property is newer construction and competing with 80s and 90s construction • Uncertainty remains from COVID-19 pandemic

T H E L O F T S A T W I L L O W C R E E K P R O P E R T Y A N A L Y S I S | 27

T H E L O F T S AT W I L L O W C R E E K

VA L U E - A D D O P P O R T U N I T Y – L 1 & L 2 Trailing LTL, GSR, and GPR Graph – L1 currently has $3,094,323 in gross scheduled rent with $3,,168,780 in gross potential rent, resulting in a loss-to-lease of $74,457 (2.35 percent). At cap rate of 5.44% percent, this provides the opportunity to add $5,768,190 in value. Cost to Renovation and YOY Return by Unit Type Graph—Lofts at Willow Creek is a property with great potential for an incoming investor. L1 provides the opportunity to increase returns through the implementation of CapEx. It is projecting that implementing $5,500$7,500 per unit of CapEx will provide a total return near 35 percent.

COST TO RENOVATE AND YOY RETURN BY UNIT TYPE

28 | T H E L O F T S A T W I L L O W C R E E K P R O P E R T Y A N A L Y S I S

TRAILING GSR, LTL & GPR

Unico 2x2 Renovated Oase 2x2 Renovated Aventura 1x1 Renovated

Estilo 1x1 Renovated

Rifugio 2x2

Rifugio 2x2 Renovated

VACANT UNITS

Rofuto 2x2

Oase 2x2

VACANT UNITS

Rofuto 2x2 Renovated Attico 1x1 Renovated

LOSS TO LEASE BY UNIT TYPE

NEW LEASE RENT GROWTH

T H E L O F T S A T W I L L O W C R E E K P R O P E R T Y A N A L Y S I S | 29

LOCAL MARKET HIGHLIGHTS

D AY T O N , O H I O

Dayton is the sixth-largest city in Ohio and the county seat of Montgomery County. The city is located within Ohio’s Miami Valley region, just north of Greater Cincinnati. Dayton’s public transportation infrastructure features the Greater Dayton Regional Transit Authority, which services 31 routes across Montgomery County. The city’s road transportation offers access in all directions via Interstate 75 running north to south and Interstate 70 running east to west. Air transportation is offered by the Dayton International Airport just north of the city. Between 2010 and 2018, the Dayton metro’s population increased from 800,289 to 806,259. During that same period, average household income increased from $63,118 to $74,657.

EMPLOYEES

P R E M I E R H E A L T H P A R T N E R S

12,425

DAYTON’S ECONOMY CLUSTERS IN HEALTHCARE, EDUCATION AND MEDIA Dayton’s three largest industry clusters are healthcare, education and media. Dayton’s largest healthcare employers include Premier Health Partners, Kettering Health Network and Children’s Medical Hospital, totaling 25,085 employees. Dayton’s education includes Sinclair Community College, The University of Dayton and Dayton Public Schools, totaling 8,225 employees. Dayton’s largest media employers are Cox Media and Taylor Communications at 1,150 total employees.

30 | T H E L O F T S A T W I L L O W C R E E K P R O P E R T Y A N A L Y S I S

LOCATION HIGHLIGHTS • Dayton is the 6th largest city in Ohio and the county seat of Montgomery County

M A L L A T F A I R F I E L D

• Between 2010 and 2018, the Dayton metro’s population increased from 800,289 to 806,259. During that same period, average household income increased from $63,118 to $74,657

G R E E N E

Nightlife in Dayton is highlighted by its Oregon District, featuring Brown Street’s row of restaurants and coffeehouses. Live music abounds in Dayton, including live concerts at City Folk and late-night jazz at Gilly’s. Dayton’s art scene includes several local galleries and exhibits at the Dayton Art Institute and the Dayton Visual Arts Center. Impressive retail options include the Dayton Mall, the Mall at the Fairfield Commons and The Greene. The Schuster Performing Arts Center and Victoria Theatre offer world-class performances.

• Healthcare is Dayton’s largest industry sector, with employers including Premier Health Partners, Kettering Health Network and Children’s Medical Hospital

T H E

C O M M O N S VIBRANT NIGHTLIFE, RETAIL OPTIONS, ARTS AND CULTURE

• Dayton’s three largest industry clusters are healthcare, education and media

T H E L O F T S A T W I L L O W C R E E K P R O P E R T Y A N A L Y S I S | 31

T H E L O F T S AT W I L L O W C R E E K

MARKET DRIVERS

H J

32 | T H E L O F T S A T W I L L O W C R E E K P R O P E R T Y A N A L Y S I S

A C

G A

Wright State University (2 miles)

Wright-Patterson AFB (6 miles)

The Mall at Fairfield Commons (1.3 miles)

The Greene (8 miles)

National Museum of the US Air Force (4.6 miles)

University of Dayton (8.5 miles)

Beavercreek Golf Club (2.7 miles)

The Dayton Art Institute (10.7 miles)

Dayton Children’s Hospital (8 miles)

The Kettering Tower (8.7 miles)

W R I G H T S T A T E U N I V E R S I T Y

20,000+ 7,000+ CIVILIAN EMPLOYEES

W R I G H T - P A T T E R S O N A I R F O R C E B A S E

12,000

MILITARY PER SONNEL

STUDENTS

DEGREE PROGRAMS

COLLEGES

SCHOOL S

O F

N A T I O N A L M U S E U M T H E U S A I R F O R C E

276

T H E L O F T S A T W I L L O W C R E E K P R O P E R T Y A N A L Y S I S | 33

T H E L O F T S AT W I L L O W C R E E K

B E AV E R C R E E K S U B M A R K E T The Lofts at Willow Creek’s rental submarket, Beavercreek, is a young and educated renter base with high disposable income. Beavercreek’s average household income is $111,562 and the property’s median age within one mile is 28.8. Dayton Metro’s apartment rental growth has been explosive over the past 5 years. Between 2015 and projected 2020, apartment rents increased at an average of 4.7% year over year from $764 to $855

34 | T H E L O F T S A T W I L L O W C R E E K P R O P E R T Y A N A L Y S I S

48,520 2023* POPULATION

$111,562 AVERAGE 2018 HOUSEHOLD INCOME

42.1

2018 MEDIAN AGE

POPULATION WITH BACHELOR’S DEGREE OR HIGHER

50% 28%

BE AVERCREEK CIT Y

DAY TON ME TRO

T H E L O F T S A T W I L L O W C R E E K P R O P E R T Y A N A L Y S I S | 35

S E C T I O N

THE

LOFTS AT

WILLOW CREEK

BROKER CAPABILITIES & OPINION OF VALUE

FINANCIAL ANALYSIS

T H E L O F T S AT W I L L O W C R E E K

U N I T M I X— T H E L O F T L 1 AV E R A G E E F F E C T I V E NO. OF U N I TS

T E N TA B L E S F

T OTA L S F

RENT/UNIT

SUMMARY One Bedroom Two Bedroom

86 123

780 SF 1,198 SF

67,050 SF 147,319 SF

Totals / Wtd. Averages

209

1,026 SF

214,369 SF

UNIT TYPE

UNIT DISTRIBUTION

MARKET

RENT/SF

T O TA L R E N T POTENTIAL

RENT/UNIT

$1,085.22 $1,345.28

$1.39 $1.13

$93,329 $165,470

$1,238.27

$1.21 SF

$258,799

P RO J E CT E D

RENT/SF

T O TA L R E N T POTENTIAL

RENT/UNIT

RENT/SF

TOTA L R E N T P OT E N T I A L

RENT I N C R E AS E

% RENT I N C R E AS E

$1,116.30 $1,416.38

$1.43 SF $1.18 SF

$96,002 $174,215

$1,157.19 $1,478.92

$1.48 SF $1.24 SF

$99,518 $181,907

$72 $134

6.63% 9.93%

$1,292.90

$1.26 SF

$270,217

$1,346.53

$1.31 SF

$281,425

$108

8.74%

UNIT RENTS

CURRENT OCCUPANCY

One Bedroom

209

UNITS Two Bedroom

38 | T H E L O F T S A T W I L L O W C R E E K F I N A N C I A L A N A L Y S I S

169

OCCUPIED UNITS

T H E L O F T S AT W I L L O W C R E E K

R E N T R O L L— T H E L O F T L 1 AV E R A G E E F F E C T I V E NO. OF UNITS

T E N TA B L E S F

TOTA L S F

RENT/UNIT

ONE BEDROOM 1BR/1BA - Attico 1BR/1BA - Aventura 1BR/1BA - Estilo 1BR/1BA - Mezzanine

32 Units 6 Units 46 Units 2 Units

676 SF 812 SF 841 SF 930 SF

21,632 SF 4,872 SF 38,686 SF 1,860 SF

Totals / Wtd. Averages

86 Units

780 SF

TWO BEDROOM 2BR/2BA - Freistatte 2BR/2BA - Pajar 2BR/2BA - Rifugio 2BR/2BA - Oase 2BR/2BA - Rofuto 2BR/2BA - Sostanza 2BR/2BA - Unico

4 Units 18 Units 75 Units 2 Units 12 Units 4 Units 8 Units

Totals / Wtd. Averages

123 Units

UNIT TYPE

MARKET

RENT/SF

T O TA L R E N T POTENTIAL

RENT/UNIT

$994.69 $1,168.00 $1,133.93 $1,165.00

$1.47 SF $1.44 SF $1.35 SF $1.25 SF

$31,830 $7,008 $52,161 $2,330

67,050 SF

$1,085.22

$1.39 SF

1,062 SF 1,125 SF 1,175 SF 1,238 SF 1,242 SF 1,374 SF 1,443 SF

4,248 SF 20,250 SF 88,125 SF 2,476 SF 14,904 SF 5,496 SF 11,544 SF

$1,211.25 $1,257.50 $1,320.36 $1,395.00 $1,399.83 $1,573.75 $1,635.00

1,195 SF

147,043 SF

$1,345.28

P RO J E CT E D

RENT/SF

T O TA L R E N T POTENTIAL

RENT/UNIT

RENT/SF

TOTA L R E N T P OT E N T I A L

RENT I N C R E AS E

% RENT I N C R E AS E

$1,055.00 $1,207.00 $1,145.00 $1,165.00

$1.56 SF $1.49 SF $1.36 SF $1.25 SF

$33,760 $7,242 $52,670 $2,330

$1,089.00 $1,215.00 $1,195.00 $1,205.00

$1.61 SF $1.50 SF $1.42 SF $1.30 SF

$34,848 $7,290 $54,970 $2,410

$94 $47 $61 $40

9.48% 4.02% 5.39% 3.43%

$93,329

$1,116.30

$1.43 SF

$96,002

$1,157.19

$1.48 SF

$99,518

$72

6.63%

$1.14 SF $1.12 SF $1.12 SF $1.13 SF $1.13 SF $1.15 SF $1.13 SF

$4,845 $22,635 $99,027 $2,790 $16,798 $6,295 $13,080

$1,225.00 $1,265.00 $1,425.00 $1,395.00 $1,445.00 $1,595.00 $1,645.00

$1.15 SF $1.12 SF $1.21 SF $1.13 SF $1.16 SF $1.16 SF $1.14 SF

$4,900 $22,770 $106,875 $2,790 $17,340 $6,380 $13,160

$1,280.00 $1,300.00 $1,495.00 $1,485.00 $1,515.00 $1,650.00 $1,689.00

$1.21 SF $1.16 SF $1.27 SF $1.20 SF $1.22 SF $1.20 SF $1.17 SF

$5,120 $23,400 $112,125 $2,970 $18,180 $6,600 $13,512

$69 $43 $175 $90 $115 $76 $54

5.68% 3.38% 13.23% 6.45% 8.23% 4.85% 3.30%

$1.13 SF

$165,470

$1,416.38

$1.18 SF

$174,215

$1,478.92

$1.24 SF

$181,907

$134

9.93%

T H E L O F T S A T W I L L O W C R E E K F I N A N C I A L A N A L Y S I S | 39

INCOME EXPENSE

T H E L O F T S AT W I L L O W C R E E K

O P E R AT I N G S TAT E M E N T— T H E L O F T L 1

GROSS POTENTIAL RENT All Units at Market Rent Gain (Loss) to Lease GROSS SCHEDULED RENT Other Income Garage Income Sewer Reimbursement Lease Buyout Trash Reimbursement Water Reimbursement Pet Rent Electric Reimbursement Deposit Alt Application Fee Early Move-Out Utility Billing Pet Fee Short Term Lease Income Cleaning Month-To-Month Income Late Charge Security Depa Renter's Liability Move-In / Adn Cable Common Total Other Income GROSS POTENTIAL INCOME Physical Vacancy Non-Revenue Units Bad Debt Concessions Allowance EFFECTIVE GROSS INCOME NON-CONTROLLABLE Real Estate Taxes 2020 Taxes Paid Adjustment for Sale Total Real Estate Taxes Insurance Utilities Electric Electric Vacant Gas Water & Sewage Trash Removal Utility Processing Fee Total Utilities Total Non-Controllable CONTROLLABLE Contract Services Security Expense Snow Removal Landscaping/Grounds Pest Control Pool Pond/Fountain Fire Protection Total Contract Services Repairs & Maintenance Marketing & Promotion Payroll Payroll Taxes & Benefits General & Administrative Management Fee Telephone & Cable Replacement & Reserves Total Controllable TOTAL EXPENSES NET OPERATING INCOME

CURRENT (Rent Roll / T12 Income; T12 Expenses) % of GPR Per Unit $3,168,780 T3 15,162 ($74,457) T3 2.35% (356) $3,094,323 T3 14,805 $74,903 $60,040 $48,440 $48,380 $39,045 $23,415 $20,474 $17,812 $16,160 $14,100 $12,720 $12,000 $11,100 $9,045 $6,000 $6,000 $4,244 $3,516 $2,400 $2,012 $433,806 $3,528,129 ($180,618) ($17,340) ($19,182) ($35,403) $3,275,586

T3 T3 T3 T3 T3 T3 T3 T3 T3 T3 T3 T3 T3 T3 T3 T3 T3 T3 T3 T3

2.42% 1.94% 1.57% 1.56% 1.26% 0.76% 0.66% 0.58% 0.52% 0.46% 0.41% 0.39% 0.36% 0.29% 0.19% 0.19% 0.14% 0.11% 0.08% 0.07% 14.02%

T3 T3 T3 T3

5.84% 0.56% 0.62% 1.14% 89.49%

YEAR 1 (Stabilized LTL, Occupancy, and Other Income; Normalized Expenses) % of GPR Per Unit $3,377,100 Note 2 16,158 ($135,084) Note 3 4.00% (646) $3,242,016 15,512

358 287 232 231 187 112 98 85 77 67 61 57 53 43 29 29 20 17 11 10 2,076 16,881 (864) (83) (92) (169) 15,673

$77,150 $61,841 $49,893 $49,831 $40,217 $24,118 $21,088 $18,346 $16,645 $14,523 $13,102 $12,360 $11,433 $9,317 $6,180 $6,180 $4,371 $3,621 $2,472 $2,073 $446,820 $3,688,836 ($162,101) ($18,600) ($32,420) ($32,420) $3,443,295

$478,405 Auditor $0 $478,405 $48,573 T12

% of EGI Per Unit 14.61% 2,289 0.00% 0 14.61% 2,289 1.48% 232

$478,405 $207,059 $685,464 $62,700

$18,899 $23,024 $1,336 $113,434 $36,092 $10,707 $203,492 $730,470

T12 T12 T12 T12 T12 T12

0.58% 0.70% 0.04% 3.46% 1.10% 0.33% 6.21% 22.30%

90 110 6 543 173 51 974 3,495

$19,277 $23,484 $1,363 $115,703 $36,814 $10,921 $207,562 $955,726

0.56% 0.68% 0.04% 3.36% 1.07% 0.32% 6.03% 27.76%

$2,428 $6,384 $47,150 $2,048 $25,909 $6,182 $4,594 $94,694 $137,762 $52,050 $338,028 $0 $54,946 $114,381 $5,528

T12 T12 T12 T12 T12 T12 T12

0.07% 0.19% 1.44% 0.06% 0.79% 0.19% 0.14% 2.89% 4.21% 1.59% 10.32% 0.00% 1.68% 3.49% 0.17%

12 31 226 10 124 30 22 453 659 249 1,617 0 263 547 26

$3,135 $7,315 $48,070 $3,135 $26,125 $6,270 $4,807 $98,857 $125,400 $41,800 $209,000 $52,250 $47,025 $120,515 $7,315

4,115 7,610 8,062

$766,116 $1,721,842 $1,721,453

T12 T12 T12 T12 T12 T12

$62,700 Note 1

$860,090 $1,590,560 $1,685,027

1.91%

26.26% 48.56% 51.44%

300

$63,954

2.38% 1.91% 1.54% 1.54% 1.24% 0.74% 0.65% 0.57% 0.51% 0.45% 0.40% 0.38% 0.35% 0.29% 0.19% 0.19% 0.13% 0.11% 0.08% 0.06% 13.78%

Note 4 Note 4

Note 5

Note 6 Note 7 Note 8 Note 8 Note 6 Note 9

YEAR 2 $3,478,413 ($69,568) $3,408,845

% of GPR 2.00%

Per Unit 16,643 (333) 16,310

$3,582,765 ($71,655) $3,511,110 $81,849 $65,607 $52,932 $52,866 $42,666 $25,586 $22,372 $19,464 $17,658 $15,407 $13,899 $13,113 $12,129 $9,884 $6,180 $6,180 $4,371 $3,621 $2,472 $2,073 $472,390 $3,983,500 ($175,556) ($19,733) ($35,111) ($35,111) $3,717,990

% of GPR Per Unit 17,142 2.00% (343) 16,800

369 296 239 238 192 115 101 88 80 69 63 59 55 45 30 30 21 17 12 10 2,138 17,650 (776) (89) (155) (155) 16,475

$79,465 $63,696 $51,390 $51,326 $41,423 $24,841 $21,721 $18,897 $17,144 $14,959 $13,495 $12,731 $11,776 $9,596 $6,180 $6,180 $4,371 $3,621 $2,472 $2,073 $459,416 $3,868,261 ($170,442) ($19,158) ($34,088) ($34,088) $3,610,484

5.00% 0.56% 1.00% 1.00% 90.44%

380 305 246 246 198 119 104 90 82 72 65 61 56 46 30 30 21 17 12 10 2,198 18,508 (816) (92) (163) (163) 17,275

% of EGI Per Unit 13.89% 2,289 6.01% 991 19.91% 3,280 1.82% 300

$478,405 $207,059 $685,464 $63,954

% of EGI 13.25% 5.73% 18.99% 1.77%

Per Unit 2,289 991 3,280 306

$478,405 $207,059 $685,464 $65,233

% of EGI Per Unit 13.25% 2,289 5.73% 991 18.99% 3,280 1.81% 312

92 112 7 554 176 52 993 4,573

$19,662 $23,954 $1,390 $118,017 $37,551 $11,140 $211,713 $961,131

0.54% 0.66% 0.04% 3.27% 1.04% 0.31% 5.86% 26.62%

94 115 7 565 180 53 1,013 4,599

$20,055 $24,433 $1,418 $120,377 $38,302 $11,363 $215,947 $966,645

0.56% 0.68% 0.04% 3.33% 1.06% 0.31% 5.98% 26.77%

96 117 7 576 183 54 1,033 4,625

0.09% 0.21% 1.40% 0.09% 0.76% 0.18% 0.14% 2.87% 3.64% 1.21% 6.07% 1.52% 1.37% 3.50% 0.21%

15 35 230 15 125 30 23 473 600 200 1,000 250 225 577 35

$3,198 $7,461 $49,031 $3,198 $26,648 $6,395 $4,903 $100,834 $127,908 $42,636 $213,180 $53,295 $47,966 $126,367 $7,461

0.09% 0.21% 1.36% 0.09% 0.74% 0.18% 0.14% 2.79% 3.54% 1.18% 5.90% 1.48% 1.33% 3.50% 0.21%

15 36 235 15 128 31 23 482 612 204 1,020 255 230 605 36

$3,262 $7,611 $50,012 $3,262 $27,180 $6,523 $5,001 $102,851 $130,466 $43,489 $217,444 $54,361 $48,925 $130,130 $7,611

0.09% 0.21% 1.39% 0.09% 0.75% 0.18% 0.14% 2.85% 3.61% 1.20% 6.02% 1.51% 1.36% 3.50% 0.21%

16 36 239 16 130 31 24 492 624 208 1,040 260 234 605 36

22.25% 50.01% 49.99%

3,666 8,238 8,237

$784,880 $1,746,011 $1,864,473

21.74% 48.36% 51.64%

3,755 8,354 8,921

$801,813 $1,768,457 $1,949,532

22.10% 48.98% 54.00%

3,818 8,462 9,328

5.00% 0.57% 1.00% 1.00% 88.43%

1.86%

306

$65,233

2.33% 1.87% 1.51% 1.51% 1.22% 0.73% 0.64% 0.55% 0.50% 0.44% 0.40% 0.37% 0.35% 0.28% 0.18% 0.18% 0.13% 0.11% 0.07% 0.06% 13.48%

YEAR 3

1.81%

312

$66,538

2.33% 1.87% 1.51% 1.51% 1.22% 0.73% 0.64% 0.55% 0.50% 0.44% 0.40% 0.37% 0.35% 0.28% 0.18% 0.18% 0.13% 0.11% 0.07% 0.06% 13.45% 5.00% 0.56% 1.00% 1.00% 90.44%

1.84%

392 314 253 253 204 122 107 93 84 74 67 63 58 47 30 30 21 17 12 10 2,260 19,060 (840) (94) (168) (168) 17,789

318

UNDERWRITING NOTES # 1 2 3 4 5 6 7 8 9

NOTE

Replacement & Reserves: added based on market norm of $300 per unit per year Increased rents based on market and highest units rented Added to keep rent increases closer to market average of 5% Added based on market norms Taxes reassessed based on 75% LTV Based on trailing Above market norm for newer construction More conservative payroll approach Fannie and Freddie Standard

T H E L O F T S A T W I L L O W C R E E K F I N A N C I A L A N A L Y S I S | 41

T H E L O F T S AT W I L L O W C R E E K

U N I T M I X— T H E L O F T L 2 AV E R A G E E F F E C T I V E NO. OF UNITS

T E N TA B L E S F

TOTA L S F

RENT/UNIT

SUMMARY One Bedroom Two Bedroom

54 62

805 SF 1,249 SF

43,446 SF 77,464 SF

Totals / Wtd. Averages

116

1,042 SF

120,910 SF

UNIT TYPE

UNIT DISTRIBUTION

MARKET

RENT/SF

T O TA L R E N T POTENTIAL

RENT/UNIT

$1,099.81 $1,434.90

$1.37 $1.15

$59,390 $88,964

$1,278.91

$1.23 SF

$148,354

P RO J E CT E D

RENT/SF

T O TA L R E N T POTENTIAL

RENT/UNIT

RENT/SF

TOTA L R E N T P OT E N T I A L

RENT I N C R E AS E

% RENT I N C R E AS E

$1,165.00 $1,531.55

$1.45 SF $1.23 SF

$62,910 $94,956

$1,216.11 $1,543.06

$1.51 SF $1.24 SF

$65,670 $95,670

$116 $108

10.57% 7.54%

$1,360.91

$1.31 SF

$157,866

$1,390.86

$1.33 SF

$161,340

$112

8.75%

UNIT RENTS

CURRENT OCCUPANCY

One Bedroom

116

UNITS Two Bedroom

42 | T H E L O F T S A T W I L L O W C R E E K F I N A N C I A L A N A L Y S I S

106

OCCUPIED UNITS

T H E L O F T S AT W I L L O W C R E E K

R E N T R O L L— T H E L O F T L 2 AV E R A G E E F F E C T I V E NO. OF U N I TS

T E N TA B L E S F

TOTA L S F

RENT/UNIT

12 42

698 SF 835 SF

8,376 SF 35,070 SF

54 Units

805 SF

TWO BEDROOM 2BR/2BA - Rifugio

2BR/2BA - Oase 2BR/2BA - Rofuto

UNIT TYPE

ONE BEDROOM 1BR/1BA - Attico 1BR/1BA - Estilo Totals / Wtd. Averages

Totals / Wtd. Averages

MARKET

RENT/SF

T O TA L R E N T POTENTIAL

RENT/UNIT

$1,055.75 $1,112.40

$1.51 SF $1.33 SF

$12,669 $46,721

43,446 SF

$1,099.81

$1.37 SF

1,208 SF

7,248 SF

$1,352.17

20 36

1,232 SF 1,266 SF

24,640 SF 45,576 SF

62 Units

1,249 SF

77,464 SF

P RO J E CT E D

RENT/SF

T O TA L R E N T POTENTIAL

RENT/UNIT

RENT/SF

TOTA L R E N T P OT E N T I A L

RENT I N C R E AS E

% RENT I N C R E AS E

$1,046.00 $1,199.00

$1.50 SF $1.44 SF

$12,552 $50,358

$1,150.00 $1,235.00

$1.65 SF $1.48 SF

$13,800 $51,870

$94 $123

8.93% 11.02%

$59,390

$1,165.00

$1.45 SF

$62,910

$1,216.11

$1.51 SF

$65,670

$116

10.57%

$1.12 SF

$8,113

$1,440.00

$1.19 SF

$8,640

$1,525.00

$1.26 SF

$9,150

$173

12.78%

$1,460.20 $1,434.63

$1.19 SF $1.13 SF

$29,204 $51,647

$1,497.00 $1,566.00

$1.22 SF $1.24 SF

$29,940 $56,376

$1,500.00 $1,570.00

$1.22 SF $1.24 SF

$30,000 $56,520

$40 $135

2.73% 9.44%

$1,434.90

$1.15 SF

$88,964

$1,531.55

$1.23 SF

$94,956

$1,543.06

$1.24 SF

$95,670

$108

7.54%

T H E L O F T S A T W I L L O W C R E E K F I N A N C I A L A N A L Y S I S | 43

EXPENSE

T H E L O F T S AT W I L L O W C R E E K

O P E R AT I N G S TAT E M E N T— T H E L O F T L 2

INCOME

CURRENT (Rent Roll / T3 Income; Adjusted Trailing Expenses) GROSS POTENTIAL RENT All Units at Market Rent Gain (Loss) to Lease GROSS SCHEDULED RENT Other Income Garage Income Sewer Reimbursement Trash Reimbursement Water Reimbursement Lease Buyout Month-To-Month Electric Reimbursement Deposit Altera Pet Rent Pet Fee Application Fee Cleaning Income Short Term Lease Income Storage Income Utility Billing Fee Early Move-Out Fee Late Charge Income Cable Reimbursement Miscellaneous Security Depa Total Other Income GROSS POTENTIAL INCOME Physical Vacancy Bad Debt Concessions Allowance EFFECTIVE GROSS INCOME NON-CONTROLLABLE Real Estate Taxes 2019 Taxes Paid Adjustment for Sale Total Real Estate Taxes Insurance Utilities Electric Electric Vacant Gas Water & Sewage Trash Removal Utility Processing Fee Total Utilities Total Non-Controllable CONTROLLABLE Contract Services Security Expense Snow Removal Landscaping/Grounds Pest Control Pool Pond/Fountain Fire Protection Total Contract Services Repairs & Maintenance Marketing & Promotion Payroll Payroll Taxes & Benefits General & Administrative Management Fee Internet, Telephone & Cable Replacement & Reserves Total Controllable TOTAL EXPENSES NET OPERATION INCOME

$1,750,848 T3 $2,658 T3 $1,753,506 T3 $35,973 $34,145 $26,096 $22,104 $19,875 $15,419 $14,195 $12,672 $12,340

T3 T3 T3 T3 T3 T3 T3 T3 T3

$2,400 $268,349 $2,021,855 ($181,338) ($21,232) ($25,312) $1,793,972

$10,000 $9,760 $8,353 $7,620 $7,368 $6,660 $5,596 $5,200 $4,488 $2,539

% of GPR Per Unit 15,094 -0.15% 23 15,116

YEAR 1 (RECAPTURE Ltl, Stabilize Occupancy, And Other Income; Normalized Expenses) % of GPR Per Unit $1,936,080 Note 2 16,690 ($116,165) Note 3 6.00% (1,001) $1,819,915 15,689

2.05% 1.95% 1.49% 1.26% 1.13% 0.88% 0.81% 0.72% 0.70%

310 294 225 191 171 133 122 109 106

0.14% 15.30%

T3 T3 T3

10.34% 1.21% 1.44% 87.16%

21 2,313 17,430 (1,563) (183) (218) 15,465

$2,472 $276,400 $2,096,315 ($90,996) ($18,199) ($18,199) $1,968,921

% of EGI Per Unit 15.13% 2,340 0.00% 0 15.13% 2,340 1.61% 249

T3 T3 T3 T3 T3 T3 T3 T3 T3 T3

$271,478 Auditor $0 $271,478 $28,835 T12

0.57% 0.56% 0.48% 0.43% 0.42% 0.38% 0.32% 0.30% 0.26% 0.14%

86 84 72 66 64 57 48 45 39 22

$37,052 $35,169 $26,879 $22,767 $20,471 $15,882 $14,620 $13,052 $12,710

YEAR 2 (..STABILIZED OCCUPANCY)

$1,994,162

% of GPR

YEAR 3 (PROJECTED RENT INCREASE AFTER STABILIZATION) Per Unit 17,191 (516) 16,675

$2,053,987

($59,825)

3.00%

$38,164 $36,224 $27,685 $23,450 $21,085 $16,358 $15,059 $13,444 $13,091

1.97% 1.87% 1.43% 1.21% 1.09% 0.85% 0.78% 0.70% 0.68%

329 312 239 202 182 141 130 116 113

0.13% 14.67%

$39,309 $37,311 $28,516 $24,153 $21,718 $16,849 $15,511 $13,847 $13,484 $10,927 $10,665 $9,127 $8,327 $8,051 $6,860 $5,764 $5,356 $4,623 $2,615 $2,472 $291,198 $2,304,106 ($100,645) ($20,129) ($20,129) $2,163,202

$1,934,338

($41,080)

$2,012,908

2.04% 1.93% 1.48% 1.25% 1.12% 0.87% 0.80% 0.72% 0.70%

319 303 232 196 176 137 126 113 110

0.14% 15.19%

21 2,383 18,072 (784) (157) (157) 16,973

$2,472 $283,690 $2,218,027 ($96,717) ($19,343) ($19,343) $2,082,624

5.00% 1.00% 1.00% 90.00%

21 2,446 19,121 (834) (167) (167) 17,954

$271,478 $121,558 $393,036 $34,800

% of EGI Per Unit 13.79% 2,340 Note 5 6.17% 1,048 19.96% 3,388 1.77% 300

$271,478 $121,558 $393,036 $35,496

% of EGI 13.04% 5.84% 18.87% 1.70%

Per Unit 2,340 1,048 3,388 306

$271,478 $121,558 $393,036 $36,206

$10,300 $10,053 $8,603 $7,849 $7,589 $6,860 $5,764 $5,356 $4,623 $2,615

0.57% 0.55% 0.47% 0.43% 0.42% 0.38% 0.32% 0.29% 0.25% 0.14%

Note 4 Note 4

5.00% 1.00% 1.00% 87.00%

89 87 74 68 65 59 50 46 40 23

$10,609 $10,354 $8,861 $8,084 $7,816 $6,860 $5,764 $5,356 $4,623 $2,615

0.55% 0.54% 0.46% 0.42% 0.40% 0.35% 0.30% 0.28% 0.24% 0.14%

91 89 76 70 67 59 50 46 40 23

% of GPR Per Unit 17,707 2.00% (354) 17,353 1.95% 1.85% 1.42% 1.20% 1.08% 0.84% 0.77% 0.69% 0.67% 0.54% 0.53% 0.45% 0.41% 0.40% 0.35% 0.30% 0.28% 0.24% 0.14% 0.13% 14.47% 5.00% 1.00% 1.00% 91.00%

339 322 246 208 187 145 134 119 116 94 92 79 72 69 59 50 46 40 23 21 2,510 19,863 (868) (174) (174) 18,648

% of GPR Per Unit 13.04% 2,340 5.84% 1,048 18.87% 3,388 1.74% 312

$15,739 $9,226 $2,375 $52,743 $18,075 $8,827 $106,984 $407,297

T12 T12 T12 T12 T12 T12

0.88% 0.51% 0.13% 2.94% 1.01% 0.49% 5.96% 22.70%

136 80 20 455 156 76 922 3,511

$16,054 $9,410 $2,422 $53,797 $18,437 $9,003 $109,124 $536,960

0.82% 0.48% 0.12% 2.73% 0.94% 0.46% 5.54% 27.27%

138 81 21 464 159 78 941 4,629

$16,375 $9,599 $2,471 $54,873 $18,806 $9,183 $111,307 $539,839

0.79% 0.46% 0.12% 2.63% 0.90% 0.44% 5.34% 25.92%

141 83 21 473 162 79 960 4,654

$16,702 $9,791 $2,520 $55,971 $19,182 $9,367 $113,533 $542,775

0.80% 0.47% 0.12% 2.69% 0.92% 0.45% 5.45% 26.06%

144 84 22 483 165 81 979 4,679

$1,815 $3,543 $25,531 $763 $5,957 $3,431 $2,550 $43,590 $65,770 $24,280 $178,785 $0 $17,375 $68,143 $17,162 $34,800 $449,906 $857,203 $936,769

T12 T12 T12 T12

0.10% 0.20% 1.42% 0.04% 0.33% 0.19% 0.14% 2.43% 3.67% 1.35% 9.97% 0.00% 0.97% 3.80% 0.96% 1.94% 25.08% 47.78% 52.22%

16 31 220 7 51 30 22 376 567 209 1,541 0 150 587 148 300 3,878 7,390 8,076

$2,320 $4,060 $25,520 $1,740 $6,380 $3,480 $2,668 $46,168 $69,600 $23,200 $116,000 $29,000 $26,100 $68,912 $17,400 $35,496 $431,876 $968,836 $1,000,085

0.12% 0.21% 1.30% 0.09% 0.32% 0.18% 0.14% 2.34% 3.53% 1.18% 5.89% 1.47% 1.33% 3.50% 0.88% 1.80% 21.93% 49.21% 50.79%

20 35 220 15 55 30 23 398 600 200 1,000 250 225 594 150 306 3,723 8,352 8,621

$2,366 $4,141 $26,030 $1,775 $6,508 $3,550 $2,721 $47,091 $70,992 $23,664 $118,320 $29,580 $26,622 $72,892 $17,748 $36,206 $443,115 $982,954 $1,099,670

0.11% 0.20% 1.25% 0.09% 0.31% 0.17% 0.13% 2.26% 3.41% 1.14% 5.68% 1.42% 1.28% 3.50% 0.85% 1.74% 21.28% 47.20% 52.80%

20 36 224 15 56 31 23 406 612 204 1,020 255 230 628 153 312 3,820 8,474 9,480

$2,414 $4,224 $26,551 $1,810 $6,638 $3,621 $2,776 $48,033 $72,412 $24,137 $120,686 $30,172 $27,154 $75,712 $18,103 $36,930 $453,340 $996,114 $1,167,088

0.12% 0.20% 1.27% 0.09% 0.32% 0.17% 0.13% 2.31% 3.48% 1.16% 5.79% 1.45% 1.30% 3.50% 0.87% 1.77% 21.63% 47.83% 56.04%

21 36 229 16 57 31 24 414 624 208 1,040 260 234 628 156 318 3,884 8,587 10,061

T12 T12 T12 T12 T12 T12 T

Note 6 Note 7 Note 8 Note 8 Note 6 Note 9

UNDERWRITING NOTES # 1 2 3 4 5 6 7 8 9

NOTE

T H E L O F T S A T W I L L O W C R E E K F I N A N C I A L A N A L Y S I S | 45

S E C T I O N

THE

LOFTS AT

WILLOW CREEK

BROKER CAPABILITIES & OPINION OF VALUE

COMBINED FINANCIALS

T H E L O F T S AT W I L L O W C R E E K

U N I T M I X— T H E L O F T S C O M B I N E D AV E R A G E E F F E C T I V E NO. OF UNITS

T E N TA B L E S F

TOTA L S F

RENT/UNIT

SUMMARY One Bedroom Two Bedroom

140 185

789 SF 1,214 SF

110,496 SF 224,507 SF

Totals / Wtd. Averages

325

1,031 SF

335,003 SF

UNIT TYPE

UNIT DISTRIBUTION

MARKET

RENT/SF

T O TA L R E N T POTENTIAL

RENT/UNIT

$1,090.85 $1,375.32

$1.38 $1.13

$152,719 $254,433

$1,252.78

$1.22 SF

$407,152

P RO J E CT E D

RENT/SF

T O TA L R E N T POTENTIAL

RENT/UNIT

RENT/SF

TOTA L R E N T P OT E N T I A L

RENT I N C R E AS E

% RENT I N C R E AS E

$1,135.09 $1,454.98

$1.44 SF $1.20 SF

$158,912 $269,171

$1,179.91 $1,500.42

$1.49 SF $1.24 SF

$165,188 $277,577

$89 $125

8.16% 9.10%

$1,317.18

$1.28 SF

$428,083

$1,362.35

$1.32 SF

$442,765

$110

8.75%

UNIT RENTS

CURRENT OCCUPANCY

One Bedroom

116

UNITS Two Bedroom

48 | T H E L O F T S A T W I L L O W C R E E K F I N A N C I A L A N A L Y S I S

106

OCCUPIED UNITS

T H E L O F T S AT W I L L O W C R E E K

R E N T R O L L— T H E L O F T S C O M B I N E D AV E R A G E E F F E C T I V E NO. OF U N I TS

T E N TA B L E S F

TOTA L S F

RENT/UNIT

ONE BEDROOM 1BR/1BA - Attico - L1 1BR/1BA - Attico - L2 1BR/1BA - Aventura - L1 1BR/1BA - Estilo - L2 1BR/1BA - Estilo - L1 1BR/1BA - Mezzanine - L1

32 Units 12 Units 6 Units 42 Units 46 Units 2 Units

676 SF 698 SF 812 SF 835 SF 841 SF 930 SF

21,632 SF 8,376 SF 4,872 SF 35,070 SF 38,686 SF 1,860 SF

Totals / Wtd. Averages

140 Units

789 SF

TWO BEDROOM 2BR/2BA - Freistatte - L1 2BR/2BA - Pajar - L1 2BR/2BA - Rifugio - L1 2BR/2BA - Rifugio - L2 2BR/2BA - Oase - L2 2BR/2BA - Oase - L1 2BR/2BA - Rofuto - L1 2BR/2BA - Rofuto - L2 2BR/2BA - Sostanza -L1 2BR/2BA - Unico - L1

4 Units 18 Units 75 Units 6 Units 20 Units 2 Units 12 Units 36 Units 4 Units 8 Units

Totals / Wtd. Averages

185 Units

UNIT TYPE

MARKET

RENT/SF

T O TA L R E N T POTENTIAL

RENT/UNIT

$994.69 $1,055.75 $1,168.00 $1,112.40 $1,133.93 $1,165.00

$1.47 SF $1.51 SF $1.44 SF $1.33 SF $1.35 SF $1.25 SF

$31,830 $12,669 $7,008 $46,721 $52,161 $2,330

110,496 SF

$1,090.85

$1.38 SF

1,062 SF 1,125 SF 1,175 SF 1,208 SF 1,232 SF 1,238 SF 1,242 SF 1,266 SF 1,374 SF 1,443 SF

4,248 SF 20,250 SF 88,125 SF 7,248 SF 24,640 SF 2,476 SF 14,904 SF 45,576 SF 5,496 SF 11,544 SF

$1,211.25 $1,257.50 $1,320.36 $1,352.17 $1,460.20 $1,395.00 $1,399.83 $1,434.63 $1,573.75 $1,635.00

1,214 SF

224,507 SF

$1,375.32

P RO J E CT E D

RENT/SF

T O TA L R E N T POTENTIAL

RENT/UNIT

RENT/SF

TOTA L R E N T P OT E N T I A L

RENT I N C R E AS E

% RENT I N C R E AS E

$1,055.00 $1,046.00 $1,207.00 $1,199.00 $1,145.00 $1,165.00

$1.56 SF $1.50 SF $1.49 SF $1.44 SF $1.36 SF $1.25 SF

$33,760 $12,552 $7,242 $50,358 $52,670 $2,330

$1,089.00 $1,150.00 $1,215.00 $1,235.00 $1,195.00 $1,205.00

$1.61 SF $1.65 SF $1.50 SF $1.48 SF $1.42 SF $1.30 SF

$34,848 $13,800 $7,290 $51,870 $54,970 $2,410

$94 $94 $47 $123 $61 $40

9.48% 8.93% 4.02% 11.02% 5.39% 3.43%

$152,719

$1,135.09

$1.44 SF

$158,912

$1,179.91

$1.49 SF

$165,188

$89

8.16%

$1.14 SF $1.12 SF $1.12 SF $1.12 SF $1.19 SF $1.13 SF $1.13 SF $1.13 SF $1.15 SF $1.13 SF

$4,845 $22,635 $99,027 $8,113 $29,204 $2,790 $16,798 $51,647 $6,295 $13,080

$1,225.00 $1,265.00 $1,425.00 $1,440.00 $1,497.00 $1,395.00 $1,445.00 $1,566.00 $1,595.00 $1,645.00

$1.15 SF $1.12 SF $1.21 SF $1.19 SF $1.22 SF $1.13 SF $1.16 SF $1.24 SF $1.16 SF $1.14 SF

$4,900 $22,770 $106,875 $8,640 $29,940 $2,790 $17,340 $56,376 $6,380 $13,160

$1,280.00 $1,300.00 $1,495.00 $1,525.00 $1,500.00 $1,485.00 $1,515.00 $1,570.00 $1,650.00 $1,689.00

$1.21 SF $1.16 SF $1.27 SF $1.26 SF $1.22 SF $1.20 SF $1.22 SF $1.24 SF $1.20 SF $1.17 SF

$5,120 $23,400 $112,125 $9,150 $30,000 $2,970 $18,180 $56,520 $6,600 $13,512

$69 $43 $175 $173 $40 $90 $115 $135 $76 $54

5.68% 3.38% 13.23% 12.78% 2.73% 6.45% 8.23% 9.44% 4.85% 3.30%

$1.13 SF

$254,433

$1,454.98

$1.20 SF

$269,171

$1,500.42

$1.24 SF

$277,577

$125

9.10%

T H E L O F T S A T W I L L O W C R E E K F I N A N C I A L A N A L Y S I S | 49

EXPENSE

T H E L O F T S AT W I L L O W C R E E K

O P E R AT I N G S TAT E M E N T— C O M B I N E D

INCOME

CURRENT GROSS POTENTIAL RENT All Units at Market Rent Gain (Loss) to Lease GROSS SCHEDULED RENT Other Income Garage Income Sewer Reimbursement Trash Reimbursement Lease Buyout Water Reimbursement Pet Rent Electric Reimbursement Deposit Altera Application Fee Pet Fee Month-To-Month Early Move-Out Fee Utility Billing Fee Short Term Lease Income Cleaning Income Late Charge Income Storage Income Security Depa Cable Reimbursement Renter's Liability Total Other Income GROSS POTENTIAL INCOME Physical Vacancy Non-Revenue Units Bad Debt Concessions Allowance EFFECTIVE GROSS INCOME NON-CONTROLLABLE Real Estate Taxes 2020 Taxes Paid Adjustment for Sale Total Real Estate Taxes Insurance Utilities Electric Electric Vacant Gas Water & Sewage Trash Removal Utility Processing Fee Total Utilities Total Non-Controllable CONTROLLABLE Contract Services Security Expense Snow Removal Landscaping/Grounds Pest Control Pool Pond/Fountain Fire Protection Total Contract Services Repairs & Maintenance Marketing & Promotion Payroll Payroll Taxes & Benefits General & Administrative Management Fee Telephone & Cable Replacement & Reserves Total Controllable TOTAL EXPENSES NET OPERATING INCOME

$4,919,628 T3 ($71,799) T3 $4,847,829 T3 $110,876 $94,184 $74,476 $68,315 $61,149 $35,755 $34,668 $30,484 $25,920 $22,000 $21,419 $19,696

$5,313,180 Note 2 ($212,527) Note 3 $5,100,653

2.29% 1.94% 1.54% 1.41% 1.26% 0.74% 0.72% 0.63% 0.53% 0.45% 0.44% 0.41%

341 290 229 210 188 110 107 94 80 68 66 61

$702,156 $5,549,985 ($361,956) T3

14.48%

7.47%

2,160 17,077 (1,114)

$723,220 $5,823,873 ($255,033)

($40,414) T3 ($60,715) T3 $5,069,560

0.83% 1.25% 88.63%

(124) (187) 15,599

% of EGI Per Unit 14.79% 2,307 0.00% 0 14.79% 2,307 1.53% 238

$19,380 $18,720 $17,398 $11,200 $7,368 $6,644 $6,501 $5,704

T3 T3 T3 T3 T3 T3 T3 T3 T3 T3 T3 T3

YEAR 1

% of GPR Per Unit 15,137 1.46% (221) 14,916

T3 T3 T3 T3 T3 T3 T3 T3

($17,340) T3

$749,883 Auditor $0 $749,883 $77,408 T12

0.40% 0.39% 0.36% 0.23% 0.15% 0.14% 0.13% 0.12% 0.36%

60 58 54 34 23 20 20 18

(53)

$114,202 $97,010 $76,710 $70,364 $62,983 $36,827 $35,708 $31,399 $26,698 $22,660 $22,062 $20,287

YEAR 2 % of GPR Per Unit 16,348 4.00% (654) 15,694 2.24% 1.90% 1.50% 1.38% 1.23% 0.72% 0.70% 0.62% 0.52% 0.44% 0.43% 0.40%

351 298 236 217 194 113 110 97 82 70 68 62

14.18% 5.00%

2,225 17,920 (785)

($51,007) Note 4 ($51,007) Note 4 $5,448,647

1.00% 1.00% 88.64%

$749,883 $347,442 Note 5 $1,097,325 $97,500

$5,472,575 ($109,452) $5,363,124

2.00%

YEAR 3 Per Unit 16,839 (337) 16,502

2.19% 1.86% 1.47% 1.35% 1.21% 0.71% 0.69% 0.60% 0.51% 0.44% 0.42% 0.39%

362 307 243 223 200 117 113 100 85 72 70 64

$743,632 $6,106,756 ($268,156)

13.87%

(157) (157) 16,765

% of EGI Per Unit 13.76% 2,307 6.38% 1,069 20.14% 3,376 1.79% 300

$19,961 $19,282 $17,920 $11,536 $7,589 $6,843 $6,696 $5,875

0.39% 0.38% 0.35% 0.23% 0.15% 0.13% 0.13% 0.12%

($18,180)

0.36%

61 59 55 35 23 21 21 18

(56)

$117,629 $99,920 $79,012 $72,475 $64,873 $37,932 $36,780 $32,340 $27,499 $23,340 $22,724 $20,895

% of GPR

$5,636,753 ($112,735) $5,524,018

% of GPR Per Unit 17,344 2.00% (347) 16,997 2.19% 1.86% 1.47% 1.35% 1.21% 0.71% 0.69% 0.60% 0.51% 0.44% 0.42% 0.39% 0.38% 0.37% 0.33% 0.22% 0.14% 0.13% 0.12% 0.11% 13.84%

5.00%

2,288 18,790 (825)

$121,157 $102,918 $81,382 $74,649 $66,819 $39,070 $37,883 $33,311 $28,323 $24,040 $23,406 $21,522 $21,177 $20,456 $17,920 $12,239 $7,589 $7,260 $6,696 $6,233 $764,657 $6,288,675 ($276,201)

5.00%

373 317 250 230 206 120 117 102 87 74 72 66 65 63 55 38 23 22 21 19 2,353 19,350 (850)

($53,631) ($53,631) $5,712,612

1.00% 1.00% 90.65%

(165) (165) 17,577

($55,240) ($55,240) $5,882,706

1.00% 1.00% 90.65%

(170) (170) 18,101

$749,883 $347,442 $1,097,325 $99,450

% of EGI 13.13% 6.08% 19.21% 1.74%

Per Unit 2,307 1,069 3,376 306

$749,883 $347,442 $1,097,325 $101,439

$20,560 $19,860 $17,920 $11,882 $7,589 $7,048 $6,696 $6,051

($18,725)

0.38% 0.37% 0.33% 0.22% 0.14% 0.13% 0.12% 0.11% 0.35%

63 61 55 37 23 22 21 19

(58)

($19,287)

0.35%

(59)

% of GPR Per Unit 13.13% 2,307 6.08% 1,069 19.21% 3,376 1.78% 312

$34,638 $32,250 $3,711 $166,177 $54,167 $19,534 $310,477 $1,137,768

T12 T12 T12 T12 T12 T12

0.68% 0.64% 0.07% 3.28% 1.07% 0.39% 6.12% 22.44%

107 99 11 511 167 60 955 3,501

$35,331 $32,895 $3,785 $169,501 $55,250 $19,925 $316,687 $1,511,512

0.65% 0.60% 0.07% 3.11% 1.01% 0.37% 5.81% 27.74%

109 101 12 522 170 61 974 4,651

$36,037 $33,553 $3,861 $172,891 $56,355 $20,323 $323,020 $1,519,795

0.63% 0.59% 0.07% 3.03% 0.99% 0.36% 5.65% 26.60%

111 103 12 532 173 63 994 4,676

$36,758 $34,224 $3,938 $176,348 $57,482 $20,730 $329,481 $1,528,245

0.64% 0.60% 0.07% 3.09% 1.01% 0.36% 5.77% 26.75%

113 105 12 543 177 64 1,014 4,702

$4,243 $9,927 $72,681 $2,811 $31,866 $9,613 $7,144 $138,285 $203,532 $76,330 $516,813 $0 $72,321 $182,524 $22,690 $97,500 $1,309,995 $753,336 $2,621,797

T12 T12 T12 T12 T12 T12 T12

0.08% 0.20% 1.43% 0.06% 0.63% 0.19% 0.14% 2.73% 4.01% 1.51% 10.19% 0.00% 1.43% 3.60% 0.45% 1.92% 25.84% 43.60% 51.72%

13 31 224 9 98 30 22 425 626 235 1,590 0 223 562 70 300 4,031 6,494 8,067

$6,500 $11,375 $71,500 $4,875 $32,500 $9,750 $7,475 $143,975 $195,000 $65,000 $325,000 $81,250 $73,125 $190,703 $22,750 $99,450 $1,196,253 $868,764 $2,740,883

0.12% 0.21% 1.31% 0.09% 0.60% 0.18% 0.14% 2.64% 3.58% 1.19% 5.96% 1.49% 1.34% 3.50% 0.42% 1.83% 21.96% 45.55% 50.30%

20 35 220 15 100 30 23 443 600 200 1,000 250 225 587 70 306 3,681 7,489 8,433

$6,630 $11,603 $72,930 $4,973 $33,150 $9,945 $7,625 $146,855 $198,900 $66,300 $331,500 $82,875 $74,588 $199,941 $23,205 $101,439 $1,225,602 $879,759 $2,967,214

0.12% 0.20% 1.28% 0.09% 0.58% 0.17% 0.13% 2.57% 3.48% 1.16% 5.80% 1.45% 1.31% 3.50% 0.41% 1.78% 21.45% 44.57% 51.94%

20 36 224 15 102 31 23 452 612 204 1,020 255 230 615 71 312 3,771 7,584 9,130

$6,763 $11,835 $74,389 $5,072 $33,813 $10,144 $7,777 $149,792 $202,878 $67,626 $338,130 $84,533 $76,079 $205,895 $23,669

0.12% 0.21% 1.30% 0.09% 0.59% 0.18% 0.14% 2.62% 3.55% 1.18% 5.92% 1.48% 1.33% 3.50% 0.41%

21 36 229 16 104 31 24 461 624 208 1,040 260 234 615 73

$1,252,069 $890,631

21.81% 45.12%

3,834 7,678

T12 T12 T12 T12 T12 T12 Note 1

Note 6 Note 7 Note 8 Note 8 Note 6 Note 9

$103,468

$3,102,393

1.81%

54.31%

318

9,546

UNDERWRITING NOTES # 1 2 3 4 5 6 7 8 9

NOTE

T H E L O F T S A T W I L L O W C R E E K F I N A N C I A L A N A L Y S I S | 51

S E C T I O N

THE

LOFTS AT

WILLOW CREEK

BROKER CAPABILITIES & OPINION OF VALUE

PROPERTY COMPARABLES

T H E L O F T S AT W I L L O W C R E E K

L O C A L S A L E C O M PA R A B L E S M A P *

THE LOFT AT WILLOW CREEK

The Flats at Austin Landing

Grand at Florence

Somerset at Deerfield

Latitude at Deerfield Crossing

The Gantry

* 6 3

6 Mason Grand 2

54 | T H E L O F T S A T W I L L O W C R E E K C O M P A R A B L E S

T H E L O F T S AT W I L L O W C R E E K

L O C A L S A L E C O M PA R A B L E S LOCATION

COE

UNITS

YEAR BUILT

PRICE

PRICE/UNIT

PRICE/SF

TTM CAP RATE

AVERAGE RENT

BEAVERCREEK

N/A

325

2009/2012

$48,007,075

$147,714

$143.18

4.84%

$1,250

MIAMISBURG

6/12/2019

276

2015

$33,250,000

$120,471

$148.18

TBD

$1,356

FLORENCE

11/27/2018

236

2016

$40,150,000

$170,127

$151.33

5.46%

$1,266

SOMERSET AT DEERFIELD

MASON

11/14/2018

498

2000

$93,200,000

$187,148

$102.65

5.85%

$1,362

LATITUDE AT DEERFIELD CROSSING

MASON

6/18/2018

227

2017

$33,500,000

$147,577

$117.61

6.16%

$1,369

CINCINNATI

10/30/2017

131

2016

$19,600,000

$149,618

$189.92

5.67%

$1,108

MASON

3/16/2017

294

2014

$51,000,000

$173,469

$80.52

6.15%

$1,373

PROPERTY

THE LOFT AT WILLOW CREEK THE FLATS AT AUSTIN LANDING GRAND AT FLORENCE

THE GANTRY MASON GRAND

$158,068

$131.70

$1,306

AVERAGE PRICE/UNIT

AVERAGE PRICE/SF

AVERAGE RENT

T H E L O F T S A T W I L L O W C R E E K C O M P A R A B L E S | 55

T H E L O F T S AT W I L L O W C R E E K

L O C A L S A L E C O M PA R A B L E S

THE FLATS AT AUSTIN LANDING Miamisburg, OH

Sales Date Sales Price Price Per Unit Price Per SF Cap Rate: TTM

06/12/2019 $33,250,000 $120,471 $148.18 TBD

Units Year Built Average In-Place Rent Seller Buyer

276 2015 $1,356 The Fortus Group The Connor Group

UNIT MIX

GRAND AT FLORENCE

Florence, KY

Sales Date Sales Price Price Per Unit Price Per SF Cap Rate: TTM

11/27/2018 $40,150,000 $170,127 $151.33 5.46%

Units Year Built Average In-Place Rent Seller Buyer

236 2016 $1,266

Schottenstein Real Estate Group The Solomon Organization

56 | T H E L O F T S A T W I L L O W C R E E K C O M P A R A B L E S

10 146 120

Mason, OH

Sales Date Sales Price Price Per Unit Price Per SF Cap Rate: TTM

11/01/2018 $93,200,000 $187,149 $102.65 5.85%

Units Year Built Average In-Place Rent Seller Buyer

498 2000 $1,361 The Connor Group Coastal Ridge Real Estate

UNIT MIX

UNIT MIX STUDIO: 1 BD / 1 BA: 2 BD / 2 BA:

SOMERSET AT DEERFIELD

1 BD / 1 BA: 2 BD / 2 BA: 2 BD / 2.5 BA: 3 BD / 2.5 BA:

52 104 60 20

1 BD / 1 BA: 2 BD / 2 BA: 3 BD / 2 BA:

169 215 114

T H E L O F T S AT W I L L O W C R E E K

L O C A L S A L E C O M PA R A B L E S

LATITUDE AT DEERFIELD CROSSING Mason, OH

Sales Date Sales Price Price Per Unit Price Per SF Cap Rate: TTM

06/03/2018 $33,500,000 $147,577 $147.58 6.00%

Units Year Built Average In-Place Rent Seller Buyer

227 2015 $1,377 Andereson Birkla PLK Communities

THE GANTRY

Cincinnati, OH

Sales Date Sales Price Price Per Unit Price Per SF Cap Rate: TTM

10/30/2017 $19,600,000 $149,618 $189.92 5.67%

Units Year Built Average In-Place Rent Seller Buyer

131 2016 $1,089 Milhaus / White Oak PLK Communities

UNIT MIX

UNIT MIX 1 BD / 1 BA: 2 BD / 2 BA:

90 137

MASON GRAND Mason, OH

Sales Date Sales Price Price Per Unit Price Per SF Cap Rate: TTM

03/16/2017 $51,000,000 $173,469 $80.52 6.65%

Units Year Built Average In-Place Rent Seller Buyer

294 2014 $1,373

Schottenstein Real Estate Group Town Management

UNIT MIX STUDIO: 1 BD / 1 BA: 2 BD / 2 BA:

35 59 37

1 BD / 1 BA: 2 BD / 2 BA: 2 BD / 2.5 BA: 3 BD / 2.5 BA:

60 120 84 50

T H E L O F T S A T W I L L O W C R E E K C O M P A R A B L E S | 57

1 3

* S ALE S C OMPAR ABLE S

58 | T H E L O F T S A T W I L L O W C R E E K C O M P A R A B L E S

The Pointe

Andover Park

Lennox Flats

The Maxwell Apartments

The Chelsea

Alexander Park

T H E L O F T S AT W I L L O W C R E E K

R E G I O N A L S A L E C O M PA R A B L E S *

THE LOF T AT WILLOW CREEK Address

2621 Hibiscus Way 3667 Park Overlook Dr. Beavercreek, OH 45431

THE POINTE Address

A N D O V E R PA R K

4890 Edwards Farm Road Hillard, OH 43026

Address

1261 Gabrielle Elaine Drive Columbus, OH 43228

Sale Date

—

Sale Date

Aug-19

Sale Date

Nov-18

Year Built

2009/2012

Year Built

2017

Year Built

2014

Units Unit SF Sale Price $/Unit $/SF Yr 1 Stabilized Cap Rate

325 1,032 $48,007,075 $147,714 $330.45

Units Unit SF Sale Price $/Unit $/SF

230 1,047 $33,750,000 $154,817 $99.74

Units

264

Unit SF

981

Sale Price $/Unit $/SF

$31,759,200 $120,300 $112.61

5.47%

T H E L O F T S A T W I L L O W C R E E K C O M P A R A B L E S | 59

T H E L O F T S AT W I L L O W C R E E K

R E G I O N A L S A L E C O M PA R A B L E S 3

L E N N O X F L AT S Address

T H E M A X W E L L A PA R T M E N T S

815 Kinnear Road Columbus, OH 43212

Address

530 East Ohio Street Indianapolis, IN 46204

THE CHELSEA Address

4120 Quentin Boulevard Columbus, OH 43230

Sale Date

Dec-19

Sale Date

Sep-17

Sale Date

Jan-18

Year Built

2012

Year Built

2009

Year Built

2013

Units

194

Units

Unit SF

555

Unit SF

Sale Price $/Unit $/SF

$30,000,000 $154,639 $278.11

60 | T H E L O F T S A T W I L L O W C R E E K C O M P A R A B L E S

Sale Price $/Unit $/SF

105 1,031 $20,000,000 $190,476 $100.10

Units

312

Unit SF

862

Sale Price $/Unit $/SF

$36,800,000 $117,949 $122.40

T H E L O F T S AT W I L L O W C R E E K

R E G I O N A L S A L E C O M PA R A B L E S

A L E X A N D E R PA R K Address

747 Worthington Woods Blvd. Worthington, OH 43085

Sale Date

Dec-17

Year Built

2008

Units Unit SF Sale Price $/Unit $/SF

204 1,066 $26,220,000 $128,529 $114.81

T H E L O F T S A T W I L L O W C R E E K C O M P A R A B L E S | 61

4 3

8 5

REN T C OMPAR ABLE S 1

Waterford at Sugarcreek

The Greene

The Promenade at Beavercreek

The Province Dayton

The Village at Stone Falls

Fairfield Lakes Townhouses

Emerald Lakes

Ashton Brooke of Beavercreek

Redwood Fairborn

THE LOF T AT WILLOW CREEK Occupancy Units Avg. SF Year Built Market Price ($/mo) Market Rate ($/SF)

62 | T H E L O F T S A T W I L L O W C R E E K C O M P A R A B L E S

Effective Price ($/mo)

100% 325 1,031 2009/2012 $1,317.18 $1.28 $1,252.78

Effective Rate ($/SF)

$1.22

Concessions

1.28%

T H E L O F T S AT W I L L O W C R E E K

R E N T C O M PA R A B L E S

WAT E R F O R D AT S U G A R C R E E K Occupancy

91%

THE PROMENADE AT BE AVERCREEK

THE GREENE Occupancy

80%

Occupancy

206

Units

98% 238

Units

231

Units

Avg. SF

959

Avg. SF

1,013

Avg. SF

1,032

Year Built

2006

Year Built

2008

Year Built Market Price ($/mo) Market Rate ($/SF) Effective Price ($/mo)

2018 $1,420 $1.48 $1,385

Market Price ($/mo) Market Rate ($/SF) Effective Price ($/mo)

$1,370 $1.35 $1,333

Market Price ($/mo) Market Rate ($/SF) Effective Price ($/mo)

$1,260 $1.22 $1,225

Effective Rate ($/SF)

$1.44

Effective Rate ($/SF)

$1.32

Effective Rate ($/SF)

$1.19

Concessions

0.9%

Concessions

1.0%

Concessions

0.3%

T H E L O F T S A T W I L L O W C R E E K C O M P A R A B L E S | 63

T H E L O F T S AT W I L L O W C R E E K

R E N T C O M PA R A B L E S

T H E P R O V I N C E D AY T O N Occupancy

T H E V I L L A G E AT S T O N E F A L L S 80%

Occupancy

100%

FAIRFIELD L AKE S TOWNHOUSE S Occupancy

Units

201

Units

Avg. SF

757

Avg. SF

1,058

Avg. SF

1,120

Year Built

1999

Year Built

1997

Year Built Market Price ($/mo) Market Rate ($/SF) Effective Price ($/mo)

2009 $1,345 $1.78 $1,305

Market Price ($/mo) Market Rate ($/SF) Effective Price ($/mo)

174

$1,135 $1.07 $1,095

Units

85%

Market Price ($/mo) Market Rate ($/SF) Effective Price ($/mo)

101

$1,395 $1.25 $1,380

Effective Rate ($/SF)

$1.72

Effective Rate ($/SF)

$1.03

Effective Rate ($/SF)

$1.23

Concessions

1.0%

Concessions

0.3%

Concessions

1.0%

Note: 2-bedroom only

64 | T H E L O F T S A T W I L L O W C R E E K C O M P A R A B L E S

T H E L O F T S AT W I L L O W C R E E K

R E N T C O M PA R A B L E S

EMERALD LAKES

A SHTON BROOKE OF BE AVERCREEK

REDWOOD FAIRBORN

Occupancy

85%

Occupancy

Units

280

Units

412

Units

Avg. SF

921

Avg. SF

985

Avg. SF

1,294

Year Built

2016

Year Built Market Price ($/mo) Market Rate ($/SF) Effective Price ($/mo)

1999 $1,195 $1.30 $1,134

Year Built Market Price ($/mo) Market Rate ($/SF) Effective Price ($/mo)

Effective Rate ($/SF)

$1.23

Effective Rate ($/SF)

Concessions

1.0%

Concessions

100%

2002 $1,095 $1.11 $1,016 $1.03 0%

Occupancy

Market Price ($/mo) Market Rate ($/SF) Effective Price ($/mo)

100% 102

$1,441 $1.11 $1,396

Effective Rate ($/SF)

$1.08

Concessions

0.3%

Note: 2-bedroom only

T H E L O F T S A T W I L L O W C R E E K C O M P A R A B L E S | 65

THE

LOFTS AT

WILLOW CREEK

BROKER CAPABILITIES & OPINION OF VALUE

2621 Hibiscus Way, Beavercreek, OH 45431