Parc at Champion Forest by CPI CAPITAL

Empowering investors to earn passive income through real estate investing. December 2021

AVA BENESOCKY

SOHEIL “AUGUST”

Managing Partner

BINIAZ

604-828-8302 ava@cpicapital.ca

Managing Partner 604-363-4797 august@cpicapital.ca

This document is confidential and may not be reproduced or redistributed. The information presented herein has been prepared for informational purposes only and is not an offer to buy or sell, or a solicitation of an offer to buy or sell any security or fund interest or any financial instrument and is not to be considered investment advice. This presentation is for institutional use only and is not to be distributed to any party other than its intended recipient. The following materials present information regarding a proposed creation of a special purpose vehicle (the “Issuer”) which would offer securities (the “Securities”) to indirectly finance its acquisition of a portfolio of financial assets to be selected and managed by the portfolio manager referred to herein (the “Manager”). These materials have been prepared to provide preliminary information about the Issuer and the transactions described herein to a limited number of potential underwriters of the Securities for the sole purpose of assisting them to determine whether they have an interest in underwriting the Securities. All securities are sold through CPI Capital EMD TokenFunder. Forward-Looking Statements This document includes “forward-looking statements” and “forward-looking information” (collectively, “forward- looking statements”) and “financial outlook” within the meaning of applicable securities laws. All statements other than statements of historical facts included in this document, including, without limitation, statements regarding the future financial position, targeted or projected investment returns, business strategy, budgets and projected costs of the Partnership and plans and objectives of the Partnership for further operations, are forward-looking statements or financial outlook. In addition, forward-looking statements and financial outlook generally can be identified by the use of forward-looking terminology such as “may,” “will,” “expect,” “intend,” “forecasted,” “projected,” “estimate,” “anticipate,” “believe,” or “continue” or the negative usages thereof or variations thereon or similar terms, although not all forward-looking statements or financial outlook contain these identifying words. Forward-looking statements and financial outlook reflect our current expectations and assumptions as of the date of the statements and are subject to a number of known and unknown risks, uncertainties and other factors, including, without limitation, those listed under the heading “Risk Factors” below, many of which are beyond our control, which may cause actual results, performance or achievements to be materially different from any anticipated future results, performance or achievements expressed or implied by the forward-looking statements. Although we believe that the assumptions on which the forward-looking statements are made and the financial outlook is based, including, without limitation, those assumptions listed under heading “Assumptions” below, are reasonable, based on the information available to it on the date such statements were made, no assurances can be given as to whether these assumptions will prove to be correct. Given these uncertainties, readers are cautioned that forward-looking statements and financial outlook contained herein are not guarantees of future performance; accordingly, readers should not place undue reliance on forward-looking statements or financial outlook. To the extent any forward-looking statements in this this document constitute “financial outlook” within the meaning of applicable securities laws, such information is being provided, so that readers are aware of management’s current estimate of future financial performance of the Partnership (which estimates are subject to change). We will not update any forward-looking statements or financial outlook except as, and to the extent, required by applicable securities laws. The forward-looking statements and financial outlook contained herein, and all subsequent written and oral forward-looking statements and financial outlook attributable to the Partnership, or persons acting on any of their behalf, are expressly qualified in their entirety by this cautionary statement. No representation or warranty is made by the Partnership as to the accuracy or completeness of any of the information contained herein. No securities commission or similar regulatory authority has passed on the merits of the securities referred to hereunder and any representation to the contrary is an offence. In considering the prior performance information contained herein, prospective investors should bear in mind that past performance is not necessarily indicative of future results, and there can be no assurance that the Partnership will achieve comparable results. Risk Factors Investment in the Partnership involves a high degree of risk and is suitable only for sophisticated investors who can withstand the loss of their entire investment and requires the financial ability and willingness to accept the high risks and lack of liquidity inherent in an investment in the Partnership. No assurance, representation or warranty can be given that the Partnership’s investment objectives will be achieved or that investors will receive a return of their capital. An investment in Units is subject to risk. Standard risks applicable to investments of this nature include: 1.No market for Units: There is currently no resale market for the Units and it is not guaranteed that any market will develop. The Units are not transferable without the approval of General Partner and in compliance with applicable securities laws and regulations.

1.Vacancy Rates: The apartment building business relies on a steady supply of good quality tenants. A shortage of quality tenants due to an economic downturn or job losses in a given marketplace could result in higher than expected vacancy and lower than expected revenue. 1. No guaranteed return: The projected returns described in this Investment Summary are not guaranteed. An investment in Units is not suitable for investors who cannot afford to assume significant risks in connection with their investments. 1. Tax matters: Investors should consult their own tax advisors for advice with respect to the tax consequences of an investment in the units based on their particular circumstances. 1. The Partnership: intends to acquire units in a USLP (Investment), Delaware limited partnership, and the Partnership will own units in the 1.USLP (Investment). In the event of a refinancing of the property, the Partnership will be entitled to participate in the net proceeds of the refinancing on a pari passu basis. Subject however, to the final terms of the USLP (investment) agreement which may include a Preferred Equity Partner that may receive preferred preferential rights of return (see Two-Tiered Equity Structure for more details). For more information, investors are advised to review the agreements governing the relationships described herein. 1.Covid-19: As the impact and extent of the COVID-19 outbreak is not known as of the date of this document, all forward looking statements in this document are qualified by the risks associated with the COVID-19 outbreak. There is significant risk that the COVID-19 outbreak will cause the assumptions underlying the forward-looking information in this document to change and the actual results and performance of the Partnership to differ materially from the forward-looking statements contained herein.

Assumptions Material factors or assumptions that were applied in drawing a conclusion or making an estimate set out in the forward- looking statements and financial outlook contained herein include that: building upgrade plans and related expenses will proceed as anticipated; the Partnership will remain in good standing with respect to its obligations to any senior lenders; the general economy is stable; local real estate conditions are stable; interest rates are relatively stable; equity and debt markets continue to provide access to capital; and that the Partnership’s expenses will not be materially greater than anticipated. These factors and assumptions should be considered carefully by readers. Readers are cautioned not to place undue reliance on the forward-looking statements or financial outlook or the assumptions on which the forward-looking statements and financial outlook are based on. Investors are further cautioned that the foregoing list of factors and assumptions is not exhaustive. In addition, information regarding targeted returns is based on the following principles and assumptions: the Partnership will maintain a consistent level of cash flow and indebtedness and will not materially incur additional indebtedness, other than with respect to ordinary operating costs or as disclosed herein; the consumer price index, property taxes, operating expense growth, and market rent growth will be as anticipated; existing tenants will fulfil their current contractual lease obligations and remain in occupancy and pay rent for the term of their leases; upon expiry of their leases, the number of retained tenants will meet historical retention experience; and the Partnership will maintain cash reserves as anticipated. Other assumptions: • Effective Gross Income Year to Year increase year one 4%, year two 11%, year three 7%, year four 3%, year five 3% • Asset Value at time of sale is calculated using a 4.09% CAP rate. Although we believe that the assumptions on which the forward-looking statements are made are reasonable, based on the information available to it on the date such statements were made, no assurances can be given as to whether these assumptions will prove to be correct. Accordingly, readers should not place undue reliance on forward-looking statements. We will not update any forward-looking information except as, and to the extent, required by applicable securities laws. The forward-looking statements contained herein, and all subsequent written and oral forward-looking statements attributable to the Partnership, or persons acting on any of their behalf, are expressly qualified in their entirety by this cautionary statement. Market data and certain industry statistics used throughout this executive summary were obtained from market research, informational and marketing materials provided to the CPI Capital, publicly available information and industry publications. Industry publications generally state that the information contained therein has been obtained from sources believed to be reliable, but that the accuracy and completeness of such information is not guaranteed. No representation or warranty is made by the Partnership as to the accuracy or completeness of any of the information contained herein. No securities commission or similar regulatory authority has passes on the merits of the securities referred to hereunder and any representation to the contrary is an offence. In considering the prior performance information contained herein, prospective investors should bear in mind that past performance is not necessarily indicative of future results, and there can be no assurance that the Partnership will achieve comparable results.

Institutional Quality Investment

The following information is an investment summary provided to prospective investors and others. This information is not an offering to sell either a security or a solicitation to sell a security. At the request of a receipt, the Company will provide a subscription agreement and Limited Partnership Agreement. The Managing Member in no way guarantees the projections contained herein. Real estate values, income, expenses and development costs are all affected by a multitude of forces outside the Managing Member’s control. This investment is illiquid and only those persons that are able and willing to risk their entire investment should participate. Please consult your attorney, CPA and/or professional financial advisor regarding the suitability of an investment by you.

Table of Contents Parc at Champion Forest Executive Summary

Investment Offering

Property Profile

Financial Analysis

The Teams

Investment Overview ✓ ✓ ✓ ✓

Executive Summary Investment Offering Market Overview Value-Add Opportunity

CPICapital.ca |

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Executive Summary OFFERING SUMMARY

CPI Capital has identified Parc at Champion Forest for acquisition. The asset is a 232-unit, Class B multifamily value-add investment opportunity in fast-growing Northwest Houston, TX. Completed in 2000, this beautiful property was thoughtfully designed with stately architecture, quality floor plans and a serene landscape making it one of the most attractive communities in the area. Parc at Champion Forest is conveniently located along FM1960 about halfway between I-45 and SH 249, 2 minutes from Walmart and Home Depot, and a short drive to major employers, including Amazon distribution centers HOU2 and HOU7, and Hospitals HCA Houston Healthcare Northwest and Houston Methodist at Willowbrook. This offering is a 45-106 – Prospectus Exemption and is open to only accredited investors. An accredited investor has either financial assets exceeding $1 million, or net assets of at least $5 million, or an annual income of $200,000 (or $300,000 if married) for the last two years and you have a reasonable expectation that it will continue.

Cap Rate

4.09%

Exit Cap Rate

4.75%

Operating Expense Ratio (OER) (3-yr average)

51%

Occupancy rate

94.4%

Interest Coverage Ratio (ICR) (year one)

1.44x

Interest Coverage Ratio (ICR) (stabilized)

1.94x

Purchase Price

$30,500,000

Hold Time

3 years

Equity Required (total)

$7,785,000

Sponsor Equity

$865,000

Limited Partner Average Annual Return

18.7%*

Major Partner Average Annual Return

19.9%*

(previously referred to as Class A)

(Previously referred to as Class B)

* See slide 15 for details

CPICapital.ca |

Strong Local Markets The northwest Houston area is home to the operations and headquarters of ten Fortune 500 companies. 6 of the top 10 Houston manufacturers have located their operations here. The region boasts an abundant & diverse workforce, access to the port of Houston, proximity to George Bush international airport, relaxed land use regulations, and good transportation infrastructure. Parc’s natural setting and well-designed floor plans offer superior potential to nearby comps, which have seen 12.7% rent growth in the past year.

Partially Updated, Poised For Takeoff Built in 2000, Parc has been well-maintained, and all but three roofs were replaced in 2017–2019. Units are 48% / 52% mix of 1bed and 2-bed / 3-bed floor plans, with average size of 912 square feet at $1,046 monthly rent. All units (including 95 partials) will be renovated to a luxury granite / stainless finish level. Washer-dryer machines installed in all units, and smart home door locks / climate control as a finishing touch. Once complete, Parc will offer a complete lifestyle to residents at competitive rents vs. nearby comps.

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Convenience & Accessibility Parc at Champion Forest is located about halfway between I45 and SH 249, 2 minutes from Walmart and Home Depot, and a short drive to major employers, including Amazon distribution centers HOU2 and HOU7, and Hospitals HCA Houston Healthcare Northwest and Houston Methodist at Willowbrook. Traffic count on Bammel N Houston Blvd is 50k. Willowbrook Mall, which boasts 160+ retailers, and the George Bush international Airport, the 15th busiest in the country, are both located within a half hour’s drive.

Demand Drivers The northwest area of Houston has greatly benefited from the city’s outward population growth: over the past 15 years, more than 80% of Harris County’s population growth has occurred in unincorporated Harris County, which contains Northwest Houston and the Champions submarket. Convenience and affordability underpin continued rental upside.

CPICapital.ca |

Two-Tiered Equity Structure Allows Investors to Match Investment Goals Two-Tiered Return Structure: A two-tiered return structure gives investors more choices when placing their equity. Investors have the opportunity to invest as either a Limited- or Major Partner, relative to meeting the minimum investment requirements. Limited Partner (Previously referred to as Class A): These investors receive a preferred return of 8% which will accrue over the life of the investment. Shortfalls in this preferred payment will accrue and compound at the preferred return rate. Cashflow from operations will be distributed monthly. Upon a capital event, investors are first entitled to their preferred return and 100% return of their original capital. The minimum investment as a Limited Partner (previously referred to as Class A) is $50,000.

Major Partner (Previously referred to as Class B): These investors receive a preferred return of 9% which will accrue over the life of the investment. Shortfalls in this preferred payment will accrue and compound at the preferred return rate. Cashflow from operations will be distributed monthly. Upon a capital event, investors are first entitled to their preferred return and 100% return of their original capital. The minimum investment as a Major Partner (previously referred to as Class B) is $100,000 with a 30% promote (no secondary hurdle). 14 | CPICapital.ca

GENERAL PARTNER MAJOR PARTNER

$8,650,000

LIMITED PARTNER

$26,010,655

30% Ownership

70% Ownership

DEBT

LIMITED PARTNER STRUCTURE 8% Preferred to Investor

Investor Distribution of Cashflow Membership Ownership

S Distributions after 15% IRR are split 50/50 to LP/GP

MAJOR PARTNER STRUCTURE Investor Distribution of Cashflow Membership Ownership

9% Preferred to Investor Distributions after 15% IRR are split 70/30 to LP/GP

Below are sample returns based on each investment option: Limited Partner (Previously referred to as Class A) is provided strong cashflow over the life of the investment. Preferred returns of 8% are cumulative and compounding. Distributions after 15% IRR are split 50/50.

INVESTOR RETURNS BASED ON $50,000 INVESTMENT FOR A LIMITED PARTNER (previously referred to as Class A) Investment Year 1 Year 2 Investor Annual Percent Return 5.1% 7.1% Cash Flow -$50,000 $2,530 $3,537 Total Return – Limited Partner -$50,000 $2,530 $3,537

Year 3 9.1% $4,543 See below

Major Partner (Previously referred to as Class B) is provided strong cashflow over the life of the investment. Preferred returns of 9% are cumulative and compounding. Distributions after 15% IRR are split 70/30 to the benefit of LP.

INVESTOR RETURNS BASED ON $100,000 INVESTMENT FOR A MAJOR PARTNER (previously referred to as Class B) Year 1 Year 2 Investor Annual Percent Return 5.1% 7.1% Cash Flow -$100,000 $5,059 $7,074 Total Return – Limited Partner -$100,000 $5,059 $7,074

Year 3 9.1% $9,085 See below

RETURN SUMMARY

Limited Partner (Previously referred to as Class A) Sensitivity Range (based on $50,000 investment)

Major Partner (Previously referred to as Class B) Sensitivity Range (based on $100,000 investment)

Cap Rate

Return on Disposition (excludes cash flow)

IRR

Equity Multiple

Avg CoC

Annualized

4.90%

$63,971

14.9%

1.49x

7.1%

16.4%

4.75%

$67,426

16.7%

1.56x

7.1%

18.7%

4.60%

$71,072

18.6%

1.63x

7.1%

18.6%

4.45%

$74,963

20.5%

1.71x

7.1%

23.7%

4.30%

$79,125

22.4%

1.79x

7.1%

26.5%

4.90%

$128,946

15.2%

1.50x

7.1%

16.7%

4.75%

$138,528

17.7%

1.60x

7.1%

19.9%

4.60%

$148,736

20.2%

1.70x

7.1%

23.3%

4.45%

$159,630

22.8%

1.81x

7.1%

27.0%

4.30%

$171,286

25.4%

1.93x

7.1%

30.8%

CPICapital.ca |

Investment Offering CPI Capital is pleased to present this investment offering of the 232-unit, Parc at Champion Forest. Completed in 2000, Parc at Champion Forest represents top-quality suburban living in a rapidly growing area of northwest Houston, TX, approximately 20 miles from downtown. The asset is a thoughtfully designed, low density community complete with spacious one-, two-, and threebedroom apartments with convenient access to major employers and thoroughfares, including the FM-1960 and major employers, such as two Amazon distribution centers, HCA Houston Healthcare Northwest and Houston Methodist at Willowbrook hospital.

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Parc at Champion Forest

15330 Bammel North Houston Road | Houston, TX

232

912

2000

211,484

Units

Average Unit Square Feet

Year Built

Rentable Square Feet

94%

10.79

$1.21

$1,360

Acres

Average Rent/SF

Average Market Rent

Occupancy

CPICapital.ca |

Convenience and Affordability with Neighborhood Lifestyle Appeal Attracts Discerning Renters Parc is situated on Bammel N Houston Rd just off FM-1960, with traffic count over 50k cars per day. This area has benefited strongly from Houston’s outward population growth: over the past 15 years, more than 80% of Harris County’s population growth has occurred in unincorporated Harris County, which contains Northwest Houston and the Champions submarket. Convenience and affordability underpin continued rental upside.

TRAVEL TIMES TO KEY EMPLOYERS AND LIFESTYLE DESTINATIONS Downtown Houston

30 minutes

HCA Houston Healthcare Northwest

10 minutes

University of Houston

30 minutes

Houston Methodist Willowbrook Hospital

12 minutes

Amazon HOU2 Distribution Centre

16 minutes

Willowbrook Mall

10 minutes

Amazon HOU7 Distribution Centre

15 minutes

George Bush International Airport

24 minutes

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Market Overview Powerful Rent Growth Asking rents in Northwest Houston average $1,200 /month. 4 & 5 Star units (including Parc) average $1,360/month, less expensive than in the nearby Woodlands and Southeast Montgomery County. Due to the affordability factor, tenants can rent at a discount to nearby submarkets and still be located close to an array of well-paying jobs with a short commute. Mirroring the metro trend, rent growth in Northwest Houston has improved considerably over the past few months. Annual growth of 10.8% is an all-time high and above the metro average of around 9.3% (CoStar 2021-12-06, p. 120) 14%

Forecast

$1,500

12%

$1,400

10%

$1,300

$1,200

$1,100

$1,000

$900

$800

-2% 2016

2017

Market Rent Growth Y/Y

2018

2019

Effective Rent Per Unit

2020

2021

2022

2023

Houston Market Rent Per Unit

2024

Annual Rent Growth

Rent Per Unit

$1,600

2025 Market Rent Per Unit

CPICapital.ca |

Area Demand Drivers Affordability and Convenience in Northwest Houston FM-1960 Corridor Parc is situated on Bammel N Houston Rd just off FM-1960, with traffic count over 50k cars per day. This area has benefited strongly from Houston’s outward population growth: over the past 15 years, more than 80% of Harris County’s population growth has occurred in unincorporated Harris County, which contains Northwest Houston and the Champions submarket. Convenience and affordability underpin continued rental upside. HOU2 and HOU7 Amazon Distribution Centers Parc sits midway between Amazon HOU7 (Sam Houston Tollway and 249. 13min / 5.4mi) / HOU2 (Greenspoint, SW – Ella Blvd. 12min / 6.4mi). Typical centers employ 1,500+ employees. (below). HCA Houston Healthcare Northwest, Houston Methodist Willowbrook 423 and 312 beds employing over 1k healthcare workers. 3.5mi, 5.6mi, 10 minutes from Parc. (top right). Willowbrook Mall 1.4M SF enclosed mall, 160+ retailers. 19M+ shoppers per year. 5.7mi from Parc. (bottom right).

Vintage Park (380ac mixed-use development) 380-acre upscale mixed-use development + 150-acre park. 9.6mi from Parc. George Bush International Airport (IAH) 15th busiest airport in North America. Contributed over $22B to the economy, supporting 170,000 local jobs.

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KEMAH BOARDWALK

NASA Johnson Space Center

Clear Lake Park

Sam Houston Race Park

Washington Avenue Coalition / Memorial Park

CPICapital.ca |

Classic Unit

Proven, Value Add Opportunity The current unit interiors are a mix of original (137) and partially updated (95) units which we will be updating to maximize rents. These units are slightly less competitive with more modern assets in the submarkets as renter preferences are maturing and evolving. Newer assets in the market are achieving rent premiums of $175 greater than at Parc at Champion Forest, providing upside for our ownership.

OUR PLANNED INTERIOR UPGRADES INCLUDE: •

Install washer & dryer in all units

•

Granite Countertops & Backsplash

•

Stainless Appliances as appropriate

•

Framed Mirrors

•

Oval Soaking Tubs

•

Smart Home Tech Package

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We are planning to spend $7,000 per unit on the interior upgrades of the classic units. The upgraded units will achieve $175 rent premium, creating $9,756,463 in value to the asset.

Stainless Steel Appliances Granite countertops and backsplash

Framed Mirrors

Oval Soaker Tubs Smart Home Tech Package Images from similar property

CPICapital.ca |

Value-Add Opportunity

Interior Unit Upgrades

232x average spend: $5,319/unit

+$68/unit/month rent premium

Washer / Dryer

Added Value!

232x W/D spend: $1,125/unit

+$35/unit/month rent premium

Smart Home Package

232x average spend: $400/unit

$468,884 Added Value!

$248k overall exterior spend of which $79,500 is allocated to amenities rather than curb appeal or maintenance work. No specific revenue allocation however it supports the overall rent increases specified in interior unit upgrades above.

Total Value Created 24 | CPICapital.ca

$2,051,368 Added Value!

+$15/unit/month rent premium –$7/unit/month contract services expense

Amenity Enhancements

$3,985,516

$9,756,463

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Property Profile ✓ Unit mix ✓ Amenity Upgrades

CPICapital.ca |

Unit Mix Parc at Champion Forest is a 232-unit Class B apartment community COMMUNITY AMENITIES

UNIT FEATURES

$1.44

Gym

$1.35

$1.44

Lounge

791

$1.18

$1.37

Business center

137 classic units: white appliances, gray flat front cabs.

$1,080

791

$1.26

$1.37

Beautiful wide lawn

$1,063

$1,165

940

$1.13

$1.24

Landscaped pool area

$1,141

$1,165

940

$1.21

$1.24

2BR/2BA

$1,277

$1,440

1,120

$1.14

$1.29

2BR/2BA R

$1,341

$1,440

1,120

$1.20

$1.29

3BR/2BA

$1,390

$1,600

1,265

$1.10

$1.26

3BR/2BA

$1,587

$1,600

1,265

$1.25

$1.26

TOTAL/ AVG

232

$1,103

$1,205

912

$1.22

$1.33

All 1 Beds

112

$951

$1,054

750

$1.27

$1.41

All 2 Beds

108

$1,216

$1,318

1,040

$1.17

$1.27

All 3 Beds

$1,505

$1,600

1,265

$1.19

$1.26

Type

Units

Rent

Pro Forma

SQ FT

Rent/SF

Pro Forma/SF

1BR/1BA A

$936

$1,035

719

$1.30

1BR/1BA R

$968

$1,035

719

1BR/1BA B

$936

$1,080

1BR/1BA B R

$999

2BR/1BA

2BR/1BA R

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Grilling stations

Leasing center

95 partially updated units: resurfaced counters, black appliances, cabinet handles. Resurfaced countertops with flat mirrors in bathrooms

3 bedroom, 5%

2 bedroom, 47%

1 bedroom, 48%

CPICapital.ca |

Amenity Upgrades In addition to upgrading the interior of the units at Parc at Champion Forest, we plan to spend $250,000 on capital project to improve and modernize the amenities and exterior. These include: • Adding equipment to the gym and playground • Repairing the pool deck • Upgrading the gas grills • Improving lighting and security • Enhancing the dog park and landscaping • Adding new package lockers and computers to the business center

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Financial Analysis ✓ ✓ ✓ ✓ ✓ ✓

Offering Summary Debt Financing Pro Forma Financials Rent Comparables Sales Comparables Sensitivity Analysis

CPICapital.ca |

Financial Overview

OFFERING SUMMARY Cap Rate

4.09%

Exit Cap Rate

4.75%

Operating Expense Ratio (OER) (3-yr average)

51%

Occupancy rate

94%

Interest Coverage Ratio (ICR) (year one)

1.44x

Interest Coverage Ratio (ICR) (stabilized)

1.94x

Purchase Price

$30,500,000

Hold Time

3-7 years

Equity Required (total)

$7,785,000

Sponsor Equity

$865,000

Limited Partner IRR & Avg Annual Return

18.7%*

Major Partner Return

19.9%*

(Previously referred to as Class A)

(Previously referred to as Class B)

* See slide 15 for details

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DEBT FINANCING Principal Balance

$26,010,655

Loan to Value

80%

Loan Type

Bridge

Interest Rate

3.65%

Months of Interest Only Payments

Full term

Term

3Y + 2x 1 year extensions

Fixed or Adjustable

Fixed

Amortization Period

I/O

CPICapital.ca |

Pro Forma Projections Parc at Champion Forest – Income & Expenses Trailing

Per Unit

Year 1

Per Unit

Year 2

Year 3

Year 4

Year 5

$3,070,572

$13,235

$3,179,085

$13,703

$3,420,427

$3,603,173

$3,712,766

$3,825,694

RUBS

$140,089

$604

$141,381

$609

$144,234

$147,146

$150,116

$153,146

Other Income

$159,288

$687

$170,396

$734

$194,943

$210,346

$214,592

$218,923

Loss to Lease

-$129,840

-$560

-$117,974

-$509

-$88,827

-$72,063

-$74,255

-$76,514

Vacancy Loss

-$107,790

-$465

-$158,954

-$685

-$171,021

-$180,159

-$185,638

-$191,285

Concessions/Non-Rev

-$175,883

-$758

-$150,880

-$650

-$90,045

-$54,048

-$55,691

-$57,385

Bad Debt

-$59,051

-$255

-$58,014

-$250

-$59,813

-$54,048

-$55,691

-$57,385

$2,897,386

$12,489

$3,005,040

$12,953

$3,706,197

$3,815,193

INCOME Gross Potential Rent

EFFECTIVE GROSS INCOME YoY Increase

$3,349,899 $3,600,347 11%

OPERATING EXPENSES Payroll

$346,636

$1,494

$324,800

$1,400

$328,340

$334,968

$341,729

$348,626

Contract Services

$57,077

$246

$77,488

$334

$78,333

$79,914

$81,527

$83,172

Repairs & Maintenance

$43,826

$189

$46,400

$200

$46,906

$47,853

$48,818

$49,804

Turnover

$75,720

$326

$69,600

$300

$70,359

$71,779

$73,228

$74,706

Utilities

$183,803

$792

$183,803

$792

$183,803

$185,497

$189,242

$193,061

Administrative

$64,960

$280

$46,400

$200

$46,906

$47,853

$48,818

$49,804

Marketing

$35,466

$153

$34,800

$150

$35,179

$35,889

$36,614

$37,353

Insurance

$155,764

$671

$157,434

$679

$159,150

$162,363

$165,640

$168,983

$100,825

$435

$90,151

$389

$100,497

$108,010

$111,186

$114,456

Property Taxes

$435,042

$1,875

$541,677

$2,335

$558,725

$591,475

$626,145

$662,847

Replacement Reserves

$58,000

$250

$58,000

$250

$58,000

$9,590

$41

$11,124

$48

$11,246

$11,473

$11,704

$11,940

$1,566,709

$6,753

$1,641,678

$7,076

$1,677,444

$1,735,073

$1,792,650

$1,852,752

50%

48%

49%

$1,672,455

$1,865,274

$1,913,547

$1,962,441

23%

12%

Management Fee

3.0%

Franchise Taxes TOTAL OPERATING EXPENSES % of EGI NET OPERATING INCOME

$1,330,677 YoY Increase

33 | CPICapital.ca

54%

55% $5,736

$1,363,362 2%

$5,877

Rent Comparables Parc at Champion Forest

Property Name Northgate Oaks Greenwood Forest Emile Northchase Village Willow Bend Abbey at Champions Champion Oaks Average of Comps Parc (going-in) Parc (proforma)

Year Built 2009 1994 1999 2006 1980 1981 1984 1993 2000 2000

Units 312 316 240 232 333 152 252 262 232 232

Property Name Greenwood Forest Northchase Village Northgate Oaks Willow Bend Emile Abbey at Champions Champion Oaks Average of Comps Parc (going-in) Parc (proforma)

Year Built 1994 2006 2009 1980 1999 1981 1984 1993 2000 2000

Units 316 232 312 333 240 152 252 262 232 232

Property Name Northchase Village Emile Greenwood Forest Average of Comps Parc (going-in) Parc (proforma)

Year Built 2006 1999 1994 2000 2000 2000

Units 232 240 316 263 232 232

One Bedroom Occupancy 99.4% 96.5% 100.0% 97.0% 95.8% 98.2% 96.9% 97.7% 91.4% 91.4% Two Bedroom Occupancy 96.5% 97.0% 99.4% 95.8% 100.0% 98.2% 96.9% 97.7% 91.4% 91.4% Three Bedroom Occupancy 97.0% 100.0% 96.5% 97.8% 91.4% 91.4%

Distance 0.49 mi 1.73 mi 0.75 mi 0.88 mi 1.25 mi 1.18 mi 1.63 mi 1.13 mi N/A N/A

SQ FT 766 792 815 736 703 656 629 728 750 750

Rent $1,170 $1,060 $1,051 $1,038 $872 $864 $837 $985 $951 $1,084

Rent/SQ FT $1.53 $1.34 $1.29 $1.41 $1.24 $1.32 $1.33 $1.35 $1.27 $1.45

Distance 1.73 mi 0.88 mi 0.49 mi 1.25 mi 0.75 mi 1.18 mi 1.63 mi 1.13 mi N/A N/A

SQ FT 1,067 1,102 1,130 939 1,051 965 993 1,035 1,040 1,040

Rent $1,538 $1,475 $1,433 $1,314 $1,280 $1,214 $1,120 $1,339 $1,216 $1,350

Rent/SQ FT $1.44 $1.34 $1.27 $1.40 $1.22 $1.26 $1.13 $1.29 $1.17 $1.30

Distance 0.88 mi 0.75 mi 1.73 mi 1.12 mi N/A N/A

SQ FT 1,295 1,282 1,413 1,330 1,265 1,265

Rent $1,650 $1,647 $1,631 $1,643 $1,505 $1,640

Rent/SQ FT $1.27 $1.28 $1.15 $1.24 $1.19 $1.30

CPICapital.ca |

Sales Comparables Parc at Champion Forest

Sales Comparables

Property Name

YoC

Units

Roundhill Townhomes

1982

134

3.46 mi

205,422

1,533

Mar-21

$21,825,000

$162,873

$106.2

Arium Towne Lake

2008

366

13.50 mi

370,392

1,012

Jan-21

$53,150,000

$145,219

$143.5

Avana Cypress Estates

2003

336

6.76 mi

320,544

954

Nov-20

$44,000,000

$130,952

$137.3

Stone Canyon

1999

216

8.33 mi

194,400

900

Oct-20

$28,550,000

$132,176

$146.9

Aviara

1995

404

2.61 mi

370,872

918

Oct-19

$46,000,000

$113,861

$124.0

Lakeview Estates

1999

288

2.03 mi

342,720

1,190

Nov-18

$36,000,000

$125,000

$105.0

Average of Comps

1998

291

6.12 mi

300,725

1,085

May-20

$38,254,167

$135,014

$127.2

Parc

2000

232

N/A

211,484

912

Dec-21

$30,500,000

$131,466

$144.2

35 | CPICapital.ca

Distance Total SQ FT

Avg SQ FT Sale Date

Sale Price

Price $/Unit Price $/SQ FT

Sensitivity Analysis Parc at Champion Forest Average annual return is projected at 18.7% over a 3-year hold period with a significant downturn scenario of -0.9% with both weak rent growth and weak exit pricing, to a potential upside of 36.1% with strong rent growth and high valuation environment. Equity multiple is projected at 1.56x over a 3-year hold period with a significant downturn scenario of 0.97x with both weak rent growth and weak exit pricing, to a potential upside of 2.08x with strong rent growth and high valuation environment. Average Annual Return Sensitivity Rent Growth

Exit Cap Rate

2.00%

2.25%

2.50%

2.75%

3.00%

3.25%

3.50%

3.75%

4.00%

5.50%

-0.9%

0.4%

1.6%

2.9%

4.1%

5.4%

6.7%

8.0%

8.9%

5.25%

5.0%

6.3%

7.6%

8.7%

9.6%

10.6%

11.5%

12.4%

13.4%

5.00%

10.5%

11.5%

12.4%

13.4%

14.4%

15.3%

16.3%

17.0%

17.8%

4.75%

15.6%

16.5%

17.3%

18.0%

18.7%

19.4%

20.1%

20.9%

21.6%

4.50%

19.8%

20.6%

21.3%

22.1%

22.8%

23.6%

24.4%

25.1%

25.9%

4.25%

24.3%

25.1%

25.9%

26.7%

27.5%

28.3%

29.1%

29.9%

30.7%

4.00%

29.3%

30.1%

31.0%

31.8%

32.7%

33.5%

34.4%

35.2%

36.1%

Equity Multiple Sensitivity Rent Growth

Exit Cap Rate

156.1%

2.00%

2.25%

2.50%

2.75%

3.00%

3.25%

3.50%

3.75%

4.00%

5.50%

0.97x

1.01x

1.05x

1.09x

1.12x

1.16x

1.20x

1.24x

1.27x

5.25%

1.15x

1.19x

1.23x

1.26x

1.29x

1.32x

1.35x

1.37x

1.40x

5.00%

1.32x

1.34x

1.37x

1.40x

1.43x

1.46x

1.49x

1.51x

1.53x

4.75%

1.47x

1.50x

1.52x

1.54x

1.56x

1.58x

1.60x

1.63x

1.65x

4.50%

1.59x

1.62x

1.64x

1.66x

1.68x

1.71x

1.73x

1.75x

1.78x

4.25%

1.73x

1.75x

1.78x

1.80x

1.82x

1.85x

1.87x

1.90x

1.92x

4.00%

1.88x

1.90x

1.93x

1.95x

1.98x

2.01x

2.03x

2.06x

2.08x

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The Teams ✓ ✓ ✓ ✓

Portfolios Property Management Sponsorship & Management Teams Real Estate Term and Definitions

37 | CPICapital.ca

CPI Capital Multifamily Portfolio

Braxton Waterleigh Property closed July 2021. Projected annual CoC returns of 9% (class a) and 7.1% (class b) and an IRR of 19.1% (class b) over a 5-year hold. PROPERTY

DETAILS

CL A SS

C O N S TR U C T E D

2021

L O C AT I O N

Orlando, FL

U N IT S

354

PURCHASE PRICE

$91.6MM

S T R U CT U R E

CO-GP

This asset is located in the rapidly growing Horizon West community of Winter Garden, which boasts stellar demographics and is home to notable white-collar employers and medical jobs. The Orlando MSA was one of the top investment markets prior to the COVID-19 pandemic and is rapidly making its way back to the top with strong job gains and overall population growth that ranked #3 in the country for 2020. Ascend Waterleigh is a thoughtfully designed, low density community complete with spacious one-, two-, and three-bedroom apartments with convenient access to white-collar employment and major Orlando thoroughfares.

CPICapital.ca |

CPI Capital Multifamily Portfolio

Bluewater at Bolton’s Landing Property closed September 2021. Projected annual CoC returns of 9% (class a) and 7.3% (class b) and an IRR of 18.4% (class b) over a 5-year hold. PROPERTY

DETAILS

CL A SS

C O N S TR U C TE D

2019

L O C AT I O N

Charleston, SC

U N IT S

350

PURCHASE PRICE

$85,850.000

S T R U CT U R E

CO-GP

This asset is located in the highly sought-after west Ashley submarket of the Charleston MSA. Completed in 2019, this true, Class A community was thoughtfully designed with stately architecture. quality floor plans and o serene landscape making it one of the premier communities in Charleston. Bluewater at Bolton's Landing is situated in the heart of West Ashley which boasts stellar demographics and is in close proximity to major employers and medical jobs. The property also is minutes from the excitement of downtown Charleston and Folly Beach, James island, Johns island, and Kiawah islands.

39 | CPICapital.ca

CPI Capital Multifamily Portfolio

The Richmond Apartments Property closed in 2018. Projected is Currently under Development.

PROPERTY DETAILS CL ASS

CONSTRUCTED

2024

L O C AT I O N

Richmond, BC

UNITS

PURCHASE PR ICE

$8.7M

S TR U CT U R E

Structure Joint Venture

Ideally located in Richmond’s family-oriented area of No 4 Road and Steveston Highway. This project offers easy access to Vancouver, Delta and the US border. With a lot size of 41,169 square feet and sellable area of over 27,000 square feet, the average square feet per unit is 1400 per unit. This 19- unit townhome development features a large spacious family style living.

CPICapital.ca |

Full Service Property Management Radiance Living is Lone Star Capital’s wholly-owned management subsidiary. Radiance vertically integrates Lone Star's property management capabilities by bringing in-house and executing the day-to-day management of Lone Star’s portfolio, optimizing operational processes, implementing capital expenditures projects and furnishing institutional-quality accounting and financial reporting. Radiance will become a tech-driven leader in property operations and a trusted name for residents.

41 | CPICapital.ca

Sponsorship / Management Team

AVA BENESOCKY

AUGUST BINIAZ

Chief Executive Officer

Chief Marketing Officer

PHILLIP LASSMAN Director, Asset Management

DR. DRUV AMBATI Strategic Advisor

DAN DRAGONETTI, MBA, BCOMM, BGNST, PMP Executive Director

ALAN WUNSCHE, MBA, CPA, CA, BSC, CBP EMD, Advisor

Featured in

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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 as: Annual Dollar Income Return / Total Equity Invested = Cash-on-Cash • Debt Service Coverage Ratio (DSCR) – It is the multiples of cash flow available to meet annual interest and principal payments on debt. This ratio should ideally be over 1. That would mean the property is generating enough income to pay its debt obligations. • 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

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