Open House Meeting

Page 1

Open House Meeting: 2301 N. Central Expressway, Richardson, Texas September 15th, 2022

Discussion Topics:

Jason

Pictured (left to right):

Evan

Ethan Frey, COO, Principal Ehrenfeld, CEO, Principal Elover, CFO, Principal Gallant, CIO, Principal

Jonathan

EXTENDED STAY HOTEL LIFE CYCLEExtended Stay Hotel Life Cycle 21 43

BeforeAfter

BEFORE AFTER

Before After

Extended Stay Hotel Life Cycle:

EXTENDED STAY HOTEL LIFE CYCLEExtended Stay Hotel Life Cycle 21 43

Upper Tier Extended Stay Brands – Years 1 – 20 (Initial Franchise Term = 20 years) Lower Tier Extended Stay Brands – Years 20+ (Franchise Term = 10 years +) Owner Profile: Institutional/Fund, REIT, Middle-Market Guest Profile: Business Traveler(s) and Families (Vacation, Home Renovation, etc.) Owner Profile: Individuals, Small Partnerships Guest Profile: Contractors/Construction Workers, Apartment-style Dwellers, Budget-conscious

Phase 2: Year 20 + Lower-Tier Brand, Declining Rates and Profit Margins Leading to Longer-term/Apartment-style leases, Deferred Maintenance Grows, Police Department Oversight Expands Phase 1: Construction through Year 20 +/ Top-tier performer, Continued Investment Due to Healthy Profit Margins SCENARIO 1: Upper Tier Owner sells to Individual/Small Partnership, Hotel is “Down-Flagged” to Lower-Tier Brand

Phase 2: Year 20 + Significant Re-Investment Into Property Due to Healthy Profit Margins and Finance-ability of Multifamily, Stabilizing of Tenancy, Crime Reduce Materially, Curb Appeal Enhanced Phase 1: Construction through Year 20 +/ Top-tier performer, Continued Investment Due to Healthy Profit Margins SCENARIO 2: Upper Tier Owner sells to Upscale Multifamily Converter

10710 Beaver Dam Road, Hunt Valley, MD (f.k.a Quality Suites):

2301 N. Central Expressway (Hyatt House Richardson): 250 Municipal Drive (Hawthorn Suites Richardson):

Avg. Calls (per year): 78.60 390.00 85.00 5.00 Avg. Calls (per month): 6.55 32.50 7.08 0.42 Avg. Calls (per week): 1.51 7.50 1.63 0.10 Common Crimes/Reporting: Suspicious Person/Prowler; Disturbance; Assault; Narcotics; Theft Burglary; Vandalism, Criminal Tresspassing, Murder, etc. Narcotics, Sexual Offense, Burglary, Family Violence, Suspicious Person, Suicide, Trafficing, Vandalism, etc. Overdose, Prostitution, Death, Assault (2nd Degree), Missing Child, Attempted Murder, Narcotics, Abandoned Warant/Summons,Vehicle,etc. Trespassing Data Source: Richardson Police Dept. Richardson Police Dept. Hunt Valley/Cockeysville Police Dept. Hunt Valley/Cockeysville Police Dept.

10710 Beaver Dam Road, Hunt Valley, MD (TRELLIS Hunt Valley):

COMMUNITY IMPACT OF AGING EXTENDED STAY HOTELS: 1) Crime & Police Burden 2)Local School Impact 4)3)BlightReduced Property Values 5) Housing of Last Resort / No Screening

2301 N. Central Expressway - Existing Conditions

Examples of current conditions –Down Units (8/26/22)

Examples of current conditions – Down Units

Studio Floorplan 70% of the Unit Mix)

(~

Conceptual Unit Interior Renovations – One Bedroom Floorplan (~ 30% of the unit mix)

BRANDING

Before After

Before After

Before After

COMMUNITY IMPACT OF TRELLIS CONVERSION: 1) Dramatic reduction in crime & police burden - 98% decrease in police reporting & 100% elimination of felony crimes at TRELLIS Hunt Valley) 1) Local School Impact - Minimal-to-none; Anticipated zero students will enroll based on current TRELLIS occupant statistics 2) Substantial investment in exterior curb appeal & aesthetics 3) Increased & stabilized property values 4) Screening of 100% of applicants - Credit, Criminal & Sex Offenses

TRELLIS Investment Partners: - Walker & Dunlop Investment Partners (“WDIP”); Range Summit Capital; and - Key Bank Real Estate Capital

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