Hawks Nest at The Preserve Investor Summary - ARC Multifamily

4041 MacArthur Blvd Newport Beach, CA 92660

HAWKS NEST AT THE PRESERVE 115 UNITS / GAINESVILLE, GA

949.439.3539 robert@arcmf.com

Table of Contents

1. EXECUTIVE SUMMARY

4

Investment Snapshot

6

Business Plan

11

Investment Structure

12

2. AREA OVERVIEW

15

Metro-Atlanta Highlights

17

Gainesville Highlights

18

Asset Class Performance

24

3. PROPERTY OVERVIEW

27

Property Overview

28

Community and Amenities

33

Sample Unit Upgrade Plan

36

Floor Plans and Unit Mix

38

4. FINANCIAL ANALYSIS Cash Flow Projections

42

Sources & Uses of Capital

46

5. TEAM

2

41

51

Investmnent Team

53

Property Management Team

54

HAWKS NEST INVESTOR SUMMARY

“Good process drives good results”

ARC MULTIFAMILY GROUP

3

4

HAWKS NEST INVESTOR SUMMARY

Executive Summary ARC MULTIFAMILY GROUP

5

Investment Snapshot 2745 Campus Point Circle, Gainesville, GA 30504

$24,353,000

Purchase Price

$531,000

Capital Improvement Budget

$200,000

Closing Costs & Working Capital

$26,456,490 6

Total Capitalization

HAWKS NEST INVESTOR SUMMARY

115

Units

2006

93%

Year Built

Occupancy

Hawks Nest at the Preserve Value-Add Acquisition

Value-Add Strategy Roadmap

ACQUIRE Acquire the property in its current condition as a fractured condo property

PHASE ONE

8

PHASE THRE

PHASE TWO

IMPROVE

RESTRU

Make strategic capital improvements and raise rents.

Restruct HOA to m co-living

HAWKS NEST INVESTOR SUMMARY

REPOSITION With a combination of increased rents / smoother operations and also reclassified as a student/co-living housing property with more favorable financing, we open up our pool of buyers and can command a higher overall asset value.

EE

PHASE FOUR

PHASE FIVE

UCTURE

REFINANCE

ture or collapse the make it student/ g housing property.

Refinance the loan between years 2 and 3, as a student/co-living housing property after raising the net operating income.

ARC MULTIFAMILY GROUP

9

1. ACQUIRE 2. IMPROVE 3. RESTRUCTURE 4. REFINANCE 5. REPOSITION

Projected 5 Year Cash-on-Cash Expectations

10

Year 1

4.0%

Cash on Cash

Year 2

6.8%

Cash on Cash

Year 3

10.5%

Cash on Cash

Year 4

11.4%

Cash on Cash

Year 5

12.4%

Cash on Cash

HAWKS NEST INVESTOR SUMMARY

Value-Add Strategy Business Plan The Property has a total of 120 units in the association. We are acquiring 115 units at $212,000 per unit from the majority owner of the project. Our plan is to buy out the remaining 5 units and restructure / dissolve the HOA which will convert the property from a fractured condo property into a Student/Co-Living housing property. Note: Our financial projections do not include the buyout of the 5 remaining units and dissolving the HOA, in order to keep our projections conservative.

Our value-added approach during the first 18-months of ownership is to upgrade 50% of the units on the property on a rolling basis across lease expirations. These upgrades will allow us to raise rents to more market-priced rents normalizing to an average of $592 per bed or $1,775 per unit.

However, our first priority will be to upgrade the common areas that are central to the Student/ Co-Living housing complex such as the clubhouse, pool, fire pits, BBQ area and leasing center. Our strategy is to make key capital improvements to the Property that will allow for us to raise the rents, while in parallel we negotiate the purchase of the 5 remaining individual units in the complex. Between years 2 and 3, a refinance of the loan will allow for the repayment of A1 equity, and in turn increasing the cashflow returns for A2, A3, and A4 investors in years 3 onwards.

The 115 units are managed as

30 UNITS

85 UNITS

115 ARC MULTIFAMILY GROUP

Student/Co-Living Housing: — Current Average rent for 85 unfurnished units is $515 per bed / $1,545 per unit — Current Average rent for 30 furnished units is $575 per bed / $1,725 per unit

11

Investment Structure Details The Manager will fund the acquisition using a combination of debt and equity. The debt is structured with a 4.85% interest rate loan. The equity component will be funded through a limited number of equity partners (“Members”).

Class

Refinance

Sequence

Preferred

/Sales

of

Equity

Annual

Return

Upside

Payment

Multiple

Return

IRR

10%

None

1.50x

10%

10%

2.00x

20.0%

16.4%

1.99x

19.8%

16.2%

1.98x

19.6%

16.1%

A1 - Preferred Equity

Gets Paid

($1,600,000 total) A2 - Commonn Equity

A3 - Common Equity A4 - Common Equity

Average

1st before A2 - A4

9%

Yes

8%

Yes

7%

Yes

After A1 is paid

After A1 is paid After A1 is paid

Investor

Minimum

Type

Investment

IndividualCash Flow IndividualEquity

IndividualEquity IndividualEquity

$200,000

$500,000

$250,000

$100,000

- Upon a capital event, the members receive their return of capital and any accrued and unpaid preferred return. After that, any distributable profit from the capital event will be shared based on the partnership structure waterfall outlined below.

- Investors always get preferred return % first before splits between Members and the Manager - A1 investors gets paid first before A2, A3, and A4, and therefore carries lower risk

A2, A3, A4 Partnership Equity Structure Hurdle (IRR)

Member/Manager (Promote)

A2: Invest $100,000 - $249,999, up to 7% A3: Invest $250,000 - $499,999, up to 8% A4: Invest $500,000+, up to 9%

100% / 0%

Up to 12%

65% / 35%

Up to 15%

50% / 50%

> 15%

35% / 65%

12

HAWKS NEST INVESTOR SUMMARY

Sample $250k Investment Illustration 5-YEAR PROJECTIONS Cash Flow Available for

At Close

Distribution Investor’s “Cash-on-Cash” Return

Year 1

Year 2

Year 3

Year 4

Year 5

Total

$9,976

$17,082

$26,245

$28,524

$30,881

$112, 708

4%

6.8%

10.5%

11.4%

12.4%

Profit and Return of Capital at Sale Total Cash Flow Initial Investment

$9,976

$17,082

$26,245

$28,524

$385,965

$385,965

$416,846

$498,673

($250,000)

($250,000)

Net Profit

$248,673

SUMMARY $250K INVESTMENT

SALE PRICE - YEAR 5

Average Annual Return

19.9%

Net Operating Income

$1,800,640

Equity Multiple

1.99x

Exit Cap Rate

5.25%

Internal Rate of Return (IRR), Net

16.2%

Sales Price

$34,297,905

Price Per Unit

$298,243

These are projections and not guarantees. Actual returns may vary widely, due to many economic and marketplace factors beyond our control.

ARC MULTIFAMILY GROUP

13

14

HAWKS NEST INVESTOR SUMMARY

Area Overview ARC MULTIFAMILY GROUP

15

16

HAWKS NEST INVESTOR SUMMARY

Metro-Atlanta Economic Highlights • #1 Busiest Airport in the World (since 1998) • 30 Fortune 500/1000 HQs • #1 Business Climate (GA) for last 7 years • #4 in Population Growth 2010-2019 • #2 in Projected Population Growth (next 5 years) • Regained 93% of all jobs since the onset of COVID-19 pandemic • Transportation & Distribution Hub • Highly Educated Workforce • #3 City for Tech Startups

ATLANTA ECONOMIC SNAPSHOT Population

6.02 m

MSA Rank

#9

Unemployment Rate (June 2021)

4.5%

Cost of Living Index (US Average: 100)

102.4

ARC MULTIFAMILY GROUP

17

Gainesville-Hall County Highlights • 50 miles NE of Atlanta along one of Atlanta’s primary paths of growth.

• Population of ~206K, a 47% increase since 2000. Expected to grow to 245K by 2030.

• Trade area serves over 1.8 million people in NE Georgia and is the region’s major retail and employment center.

• Employment growth has outpaced the national average, similar to Atlanta.

• June 2021 unemployment rate of 3.0% (close to pre-pandemic rate of 2.8% in March 2020) • “Poultry Capital of the World,” but also home to more than 330 manufacturing and processing companies, and over 50 international companies.

• Hall County is surrounded by Lake Lanier (over 7M visitors annually).

• Cost-effective living option for those working along the I-985 corridor.

• Manufacturing, healthcare, and energy are core economic growth sectors.

18

HAWKS NEST INVESTOR SUMMARY

Georgia’s Top Performing Small Metro.

Year-After-Year Growth City.

Best Small Places for Business & Careers.

ARC MULTIFAMILY GROUP

19

University of North Georgia

Lanier Technical

20

Brenau University

HAWKS NEST INVESTOR SUMMARY

Gainesville Higher Education

UNIVERSITY OF NORTH GEORGIA - Less than 1 mile from Hawks Nest at the Preserve - 7,500+ students - $6.3B statewide economic impact

LANIER TECHNICAL COLLEGE - 5,000+ Students - New 89-acre youth sports complex announced October 2019 - $135M, 95-acre, campus opened January 2019

BRENAU UNIVERSITY - 3,500+ students - 70+ undergraduate and graduate degrees

ARC MULTIFAMILY GROUP

21

6 7 2

4 3 8 1 10 9

5

Major Employers NE ATLANTA CORRIDOR MAJOR EMPLOYERS 1

Victory Processing (1,730 Employees)

6

Kubota Manufacturing (1,600 Employees)

2

Fieldale Farms Corporation (2,550 Employees)

7

Gold Creek Foods (1,593 Employees)

3

Pilgrims (1,380 Employees)

8

Foundation Food Group (1,500 Employees)

4

Mar-Jac Pultry Inc. (1,280 Employees)

9

Cottrell Inc. (1,100 Employees)

5

NE Georgia Health System (8,914 Employees)

10

ZF Gainesville LLC (1,045 Employees)

22

HAWKS NEST INVESTOR SUMMARY

Gainesville Economic Growth The Property is in close proximity to the area’s largest employers, major retail hubs, and higher education. Several notable economic development projects underway in NE Georgia.

1. Inland Port Intermodal Facilities • The 104-acre NE Georgia Inland Port will open in 2021, proving a direct link to the Port of Savannah (2nd largest container port in the U.S.).

• Will serve existing port customers, and act as an economic development tool to draw new investment into the area.

• 5M SF of industrial space under construction or planned in Hall County.

2. Rowen Development • 2,000-acre knowledge community in Metro Atlanta; envisioned as a global destination for advanced research and discovery.

• Equidistant to Atlanta, Athens, and Gainesville.

• 18.5K jobs by 2035 and 100K new jobs at full build out.

3. Northeast Georgia Healthcare System $700M Expansion • Top healthcare employer in Hall County • Addition of a multi-story tower, graduate medical education buildings (200 new students) by 2024

KEY THREE-MILE RADIUS STATISTICS Existing SF of Office Space

798K SF

Existing SF of Retail Space

2.8M SF

Existing SF of Industrial Space

10.8M SF

Under Construction SF of Industrial Space

71.4K SF

ARC MULTIFAMILY GROUP

23

Gainesville Multi-Family Sector Performance Gainesville has experienced strong rent growth and low vacancy over the past five years, with rent growth surging in recent quarters

- #15 city in the U.S. for largest rent increases since the onset of the pandemic.

- YoY rent change in rent is currently 8.4%.

- Vacancy has remained consistently low (3-4%).

- New supply has been met with considerably strong demand.

According to EMSI, in 2019, 5,001 people migrated from the Atlanta- Sandy Springs MSA to Hall County, GA, making it one of the top cities for migrations in the U.S.

Source: Cushman & Wakefield; Stessa

24

HAWKS NEST INVESTOR SUMMARY

Gainesville Submarket Effective Rent v Vacancy

Effective Rent

Vacancy

Linear (Effective Rent)

$1,100

7.00%

$1,000

6.00%

$900

5.00%

$800

4.00%

$700

3.00%

$600

2.00%

$500

1.00%

$400

0.00% 2012

2013

2014

2015

2016

2017

2018

2019

2020

POPULATION GROWTH V DELIVERIES (HALL COUNTY)

New Residents

Deliveries

3,500 3,000 2,500

2,000 1,500

1,000

500 0 2010

2011

2012

ARC MULTIFAMILY GROUP

2013

2014

2015

2016

2017

2018

2019

2020

2021

25

26

HAWKS NEST INVESTOR SUMMARY

Property Overview ARC MULTIFAMILY GROUP

27

Property Overview: Location • Enrollment at the University of North Georgia-Gainesville campus is over 7,500 students, the highest enrollment of UNG’s 5 campuses. Within a 3-mile radius of the property, there is currently only one 54-bed designated student housing property.

• UNG-Gainesville is increasing its instruction space by 25% in Fall 2021 and investing $18.9M to expand and renovate the nursing and film/digital media programs.

• The Property’s location provides easy access to downtown Gainesville.

• Students can walk to campus or hop on a shuttle that stops at the Property.

28

HAWKS NEST INVESTOR SUMMARY

ARC MULTIFAMILY GROUP

29

Property Overview: Key Details

115

2006

units being acquired

year built

1,256

avg unit sf

141,928

Avg Market Rent / SF

Average Market Rent

$1.27

$1,593

93% Occupancy

10 Acres

rentable sf

This asset is situated adjacent to the University of North Georgia’s Gainesville campus, attracting a large student demographic. The property was originally a purpose-built student housing project that was converted to condos during the Great Financial Crisis.

30

HAWKS NEST INVESTOR SUMMARY

PROPERTY DETAILS Year Built

2006

Number of Units

115

Total Square Feet

141,928

Average Unit Size

1,256 sq ft

Land Size

10 acres/11.3 units per acre

Address

2745 Campus Pointe Circle

No. of Buildings

10 residential buildings, one clubhouse/office with fitness center building.

Roof

Pitched roof with architectural shungles.

W/D Connections

Yes

Foundation

Concrete slab

Exterior Materials

Wood-frame buildings. Brick and hardiplank.

Breezeways

Open concrete breezeways and upper-level landings.

WIndows

Dual-pane windows

Plumbing

Copper or PVC domestic supply and PVS waste lines. Units equipped with 30-gallon electric water heater.

Individual electric heat pump systmes with closet-mounted air handler and exterior pad-mounted heat pump.

HVAC Electric/Gas

Total electric

Life Safety

Fully sprinkled

Historically, Hawks Nest at the Preserve has maintained a high occupancy due to the large amount of students in the units. Furthermore, the property performs turnovers and repairs within 14 days, creating minimal gaps in income.

ARC MULTIFAMILY GROUP

31

32

HAWKS NEST INVESTOR SUMMARY

Property Overview: Community Amenities COMMUNITY AMENITIES Bike Racks Business Center Central Mall Kiosk Close to Campus Controlled Access Gate Fire Pit Fitness Center Free Parking Furnished Units Available Outdoor Grilling Area Shuttle to Campus Swimming Pool Study Room

UNIT FEATURES Fully Equipped Kitchen Black or White Appliances Ceiling Fans Washer/Dryers LVT Vinyl Plank Flooring Mini Window Blinds

ARC MULTIFAMILY GROUP

33

34

HAWKS NEST INVESTOR SUMMARY

ARC MULTIFAMILY GROUP

35

Property Overview Unit Upgrade Plan Due to the large number of student occupied units, there is a great opportunity to renovate classic units during lease turn overs and over the summer term. With all classic units and only 75% of units having upgraded laminate flooring, the asset is primed for an interior value-add that includes adding stainless steel appliances, granite countertops, tile backsplash, updated lighting package, 2” blinds, USB ports and smart thermostats.

Upgrades that we are evaluating include:

• SS Appliances • Granite Countertops • Tile Backsplash • Updated Lighting Fixtures • 2” Blinds • USB Ports • Smart Thermostat

36

HAWKS NEST INVESTOR SUMMARY

Property Original Unit

Envisioned Renovated Rendering

ARC MULTIFAMILY GROUP

37

MAIN | 3 BEDROOM, 3 BATH | 1,256 SF

Property Overview: Floor Plans and Unit Mix

CURRENT UNIT MIX SUMMARY # OF UNITS

UNIT TYPE

UNIT SIZE (SF)

AVG. IN-PLACE RENT

MARKET RENT

30

3 Bed/ 3 Bath, Furnished 3 Bed/ 3 Bath, Unfurnished

1,256

$1,725

$1,830

1,256

$1,545

$1,695

Total Averages

1,256

$1,592

$1,730

85 115

38

HAWKS NEST INVESTOR SUMMARY

CURRENT UNIT MIX SUMMARY - PROFORMA # OF UNITS

UNIT TYPE

UNIT SIZE (SF)

MARKET RENT

15

3 Bed/ 3 Bath, Furnished

1,256

$1,830

15

3 Bed/ 3 Bath, Furnished - Reno

1,256

$1,950

40

3 Bed/ 3 Bath, Unfurnished

1,256

$1,695

45

3 Bed/ 3 Bath, Unfurnished - Reno

1,256

$1,770

115

Total Averages

1,256

$1,775

ARC MULTIFAMILY GROUP

39

40

HAWKS NEST INVESTOR SUMMARY

Financial Analysis ARC MULTIFAMILY GROUP

41

Pro Forma (Unlevered) Cash Flow Pr Year 1

Year 2

Gross Potential Rent

$2,350,000

$2,449,800

(Loss to Lease, Bad Debt, Vacancy)

($235,000)

($195,984)

Net Rental Income

$2,115,000

$2,253,816

Other Income

$385,020

$455,400

Total Income

$2,500,020

$2,709,216

Contract Services

($111,600)

($113,832)

Utilities

($312,839)

($319,096)

Repairs & Maintenance

($59,225)

($60,410)

Payroll

($191,374)

($195,201)

General & Administrative

($33,900)

($34,578)

Marketing & Advertising

($9,753)

($9,948)

Insurance

($46,000)

($46,920)

Real Estate Taxes

($280,468)

($286,077)

($85,743)

($87,458)

($1,130,901)

($1,153,519)

Net Operating Income

$1,369,119

$1,555,697

Capital Reserves

($34,500)

($34,500)

Cash Flow Before Debt Service

$1,334,619

$1,5 $1,521,197 21,197

OPERATING REVENUE

OPERATING EXPENSES

Property Management Fee Total Operating Expenses

42

HAWKS NEST INVESTOR SUMMARY

rojections Year 3

Year 4

Year 5

Year 6

$2,523,294

$2,598,993

$2,676,963

$2,757,271

($201,864)

($207,919)

($214,157)

($220,582)

$2,321,430

$2,391,073

$2,462,806

$2,536,690

$469,062

$483,134

$497,628

$512,557

$2,790,492

$2,874,207

$2,960,434

$3,049,247

($116,109)

($118,431)

($120,799)

($123,215)

($325,478)

($331,987)

($338,627)

($345,400)

($61,618)

($62,850)

($64,107)

($65,389)

($199,105)

($203,087)

($207,149)

($211,292)

($35,270)

($35,975)

($36,694)

($37,428)

($10,147)

($10,350)

($10,557)

($10,768)

($47,858)

($48,816)

($49,792)

($50,788)

($291,799)

($297,635)

($303,587)

($309,659)

($89,207)

($90,991)

($92,811)

($94,667)

($1,176,590)

($1,200,122)

($1,224,124)

($1,248,606)

$1,613,903

$1,674,086

$1,736,310

$1,800,640

($34,500)

($34,500)

($34,500)

($34,500)

$1,579,403

$1,639,586

$1,701,810

$1,766,140

ARC MULTIFAMILY GROUP

43

Pro Forma (Leveraged) Cash Flow Pr IRR

At Close

Year 1

Year 2

Ye

$1,334,619

$1,521,197

$1,57

($24,657,000)

$1,334,619

$1,521,197

$1,57

$17,909,000

-

($337,900)

-

-

($300

Debt Service

-

($868,587)

($868,587)

($850

Loan Repayment

-

-

-

$17,571,100

($868,587)

($868,587)

$941

($200,000)

-

-

($120

ACQUISITION COST Purchase Price

($24,353,000)

Closing Costs (excl. Financing)

($304,000)

TOTAL

($24,657,000)

CF BEFORE DEBT SERVICE

DISPOSITION PROCEEDS Gross Sales Proceeds 5.25% Cap Selling Costs (3%) NET SALES PROCEEDS

UNLEVERAGED CASH FLOW

11.8%

FINANCING CASH FLOW Loan Drawdowns Loan Closing Costs and Fees

CASH FLOW FROM LOAN PROCEEDS

$2,09

RESERVES Reserves Funded Release of Unused Reserves

-

CASH FLOW FROM RESERVES

($200,000)

Preferred Equity Payout

$1,600,000

($160,000)

($160,000)

($5,685,900)

$306,032

$492,610

$720

($730,590)

($50,000)

($54,184)

($55

($6,416,490)

$256,032

$438,426

$66

LEVERAGED CASH FLOW

26.6%

Acquisition Fee and AM Fee PARTNERSHIP CASH FLOW

44

22.6%

($200

HAWKS NEST INVESTOR SUMMARY

($1,60

rojections

ear 3

Year 4

Year 5

This table provides a snapshot of cash flow projections after factoring in debt service, loan repayment and management of reserves to operate

79,403

$1,639,586

$1,701,,810

the property.

$34,297,905 ($1,,028,937) $33,268,968

79,403

$1,639,,586

$34,970,777

91,000

-

-

0,000)

-

-

0,000)

($850,000)

($850,000)

-

($20,,000,000)

($850,000)

($20,850,000)

-

41,000

0,000)

$400,000

0,000)

$400,000

00,000)

-

-

0,403

$789,586

$14,520,777

5,810)

($57,484)

($59,209)

64,593

$732,102

$14,461,569

ARC MULTIFAMILY GROUP

45

Pro Forma Financial Analysis Sources & Uses SOURCE OF FUNDS SOURCE

$ AMOUNT

% OF TOTAL

Preferred Equity

1,600,000

6%

Class A Investors (Equity)

6,416,490

24%

Debt

18,440,000

70%

Total Sources

26,456,490

100.00%

USE OF FUNDS

46

USE

$ AMOUNT

$ / UNIT

% OF TOTAL

Purchase Price

24,353,000

$211,765

92%

Closing Costs (excl. Financing)

304,000

$2,643

1%

Capital Expenditures

531,000

$4,617

2%

Financing Costs

263,900

$2,294

1%

Lender RE Tax and Insurance Escrow + Insurance 1Y Advance

74,000

$643

0.3%

Contingency Escrow

200,000

$1,739

1%

Acquisition Fee

730,590

$6,353

3%

Total Uses

26,456,490

100.00%

HAWKS NEST INVESTOR SUMMARY

PREFERRED EQUITY GROUP DETAILS Current Pay Notes

10% Recieves priority payment but, in exchange, has limited upside potential

LOAN DETAILS Type

Bridge Loan

Term

3 years IO + two, 1-year IO extensions

Interest Rate

435 bps + 1mo LIBOR (50bp floor); LIBOR cap 1.0% of the loan amount (waived if lender

Exit Fee

refinances the loan or provides financing to next buyer)

ARC MULTIFAMILY GROUP

47

Key Real Estate Terms & Definitions Capitalization Rate (cap Rate) - A rate of return on a real estate investment property based on the expected income that the property will generate. Capitalization rate is used to estimate the investor’s potential return on his or her investment. This is done by dividing the income the property will generate (after fixed costs and variable costs) by the total value of the property.

•

When acquiring income property, the higher the capitalization rate (“Cap Rate”), the better.

•

When selling income property, the lower the Cap Rate the better.

•

A higher cap rate implies a lower price, a lower cap rate implies a higher price.

Cash Flow - Cash generated from the operations of a company, generally defined as revenues less all operating expenses.

Cash-on-Cash - A rate of return often used in real estate transactions. The calculation determines the cash income on the cash invested.

•

Calculated: Annual Dollar Income Return/ Total Equity Invested= Cash-on-Cash

Investor Average Annual Return, excluding disposition - The average return per year during the investment hold. This calculation does not include the return of invested capital.

Investor Average Annual Return, including disposition - The average return per year including profits from disposition.

Internal Rate of Return (IRR)- The rate of return that would make the present value of future cash flows plus the final market value of an investment opportunity equal the current market price of the investment or opportunity. The higher a project’s internal rate of return, the more desirable it is to undertake the project.

Return on Equity (ROE)- The amount of net income returned as a percentage of shareholders equity.

•

ROE is expressed as a percentage and calculated as: Return on Equity= Net Income/ Shareholder’s Equity

48

HAWKS NEST INVESTOR SUMMARY

ARC MULTIFAMILY GROUP

49

50

HAWKS NEST INVESTOR SUMMARY

Management Team ARC MULTIFAMILY GROUP

51

Partner Highlights • Goldman Sachs and Credit Suisse Wall Street Experience • Decades of Real Estate Investing and Operating Experience • Deep Construction and Project Management Expertise • Capital Management and Syndication Experience • Extensive Deal Structuring Experience • 4x Inc. 500 Track Record

Investment Team Robert Pereira – Managing Partner Robert has overseen the acquisition and development of over 250 residential and multifamily projects since 2008. He has raised over $30,000,000 of private capital from his network and managed over $120,000,000 of construction loans for these projects. Since founding ARC, Robert has acquired 550 multifamily units in Georgia. He earned an undergraduate degree in Engineering (2002) at the University of Waterloo, and an MBA in Real Estate & Finance (2008) from the Paul Merage School of Business at the University of California, Irvine.

Sharran Srivatsaa – Partner Sharran is a serial entrepreneur, sought after keynote speaker, and a respected thought-leadership resource for publications such as the Wall Street Journal, SUCCESS magazine, Huffington Post and Forbes. Most recently, Sharran led Teles Properties’ unprecedented 10x growth over 5 years and a 4-year consecutive streak on the Inc. 500 fastest growing companies list resulting in its acquisition by national real estate powerhouse Douglas Elliman. Prior to Teles, Sharran worked at both Goldman Sachs and Credit Suisse, where he collaborated with management teams of fast-growing businesses around the country on investment advisory and corporate strategy. Sharran is a Principal at Srilo Ventures, a multi-factor private investment fund that focuses investing in and advising technology companies and operating businesses in the consumer space. Having successfully completed many acquisitions, joint-ventures, management buyouts, mergers, and capital raises.

ARC MULTIFAMILY GROUP

53

Property Management

Meridian Management Group (MMG) is the current operator of Hawks Nest at the Preserve. MMG will continue to operate the Property on a day-to-day basis and implement our business plan.

MMG was founded over 15 years ago to provide a more complete, personalized management solution to owners and investors in the Atlanta area. Over the years, we have become a leading provider of full-service, turn-key property management services – a company that clients trust with their most valuable investments.

MMG manages a variety of investment types, including multi-family residences, single- family homes, commercial and retail spaces. MMGs Managing Partners have over 20 years of experience in Commercial Real Estate covering the Southeast and Texas, totaling over 11,000 multi-family units, 700,000 square feet of commercial space and over 700 single-family homes.

54

HAWKS NEST INVESTOR SUMMARY

ROBERT PEREIRA

SHARRAN SRIVATSAA

949.439.3539

424.254.8628

robert@arcmf.com

sharran@arcmf.com

This material does not constitute an offer to sell or a solicitation of an offer to purchase any securities in any jurisdiction. Any such offer shall be made only pursuant to a private placement memorandum which should be reviewed in its entirety, including the risk factors set forth therein, as the information in this summary is not complete. No investment in the Property will be accepted until a subscription agreement and other documentation in form acceptable to the Manager is completed. This information relates to scenarios of possible real estate opportunities for qualified accredited investors who have established an existing substantive relationship with us or our affiliates. Natural persons may qualify as accredited investors by virtue of such pre-existing relationships and by proof of business experience, income and net worth.

Information concerning the property described herein has been obtained from sources deemed reliable. However it is subject to errors and omissions. Any information contained herein may include forward-looking statements, estimates, and projections with respect to anticipated future performance. Such forward-looking statements, estimates, and projections reflect various assumptions of management that may or may not prove to be correct and may involve various risks and uncertainties. No representation is made, and no assurance can be given, that the projected results can or will be attained. Actual results may vary, perhaps materially, from the projections. This information is made available as of the date set forth below and the Manager has no obligation to update this summary.

Projections are subject to change due to loan terms, new discovery, occupancy, additional capital investment, owner decisions, and various factors involved in property management, and there is no guarantee of the projected financials, and further there is no guarantee that the property will close on a specific date. Potential investors are advised to do their own due diligence and seek appropriate professional advice if needed.

4021 MacArthur Blvd

949.439.3539

Newport Beach, CA

robert@arcmf.com

92660