Estates at Crossroads OM - Blue Lake Capital

EXCLUSIVE MULTIFAMILY INVESTMENT OPPORTUNITY OUTSTANDING PERFORMANCE DURING THE PANDEMIC

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 recipient, Blue Lake Capital (”Manager”) will provide a private placement memorandum, subscription agreement and the Limited Liability Company Operating Agreement. Blue Lake 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 the Company’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.

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T AB L E OF CONTENTS

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T A B L E OF CONTENTS Investment Summary . . . . . . . . .. . . . . . . . . . .. 8 Investment Highlights.......................11 …..

Property Ov erv iew. . . . . . . . . . . . . . . . . . . . 23 Financial Analysis. . . . . . . . . …. . 30 Market Overview.............. 37 Management Team........ 45 Contact Info…………. 53

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T AB L E OF CONTENTS Investment Summary . . . . . . . . .. . . . .. . . . . ..4 Investment Highlights. . . . . . . . . . . . . . . . .8 Property O v e r v i e w . . . . . . . . . . . . . . . 19 Financial An al y s i s . . . . . . . . . .. . …. . 3 4 Market Overview. . . . . . . . . . . . . . 36 Management Team. . . . . . . . 45 Glossary……. . . . . . . . . . . . 49 Contact Info. . . . . . . . . 51

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This investment is open for Accredited

El l i e Perl man

Investors only

info@bluelake-capital.com (401) 200-8380

MINIMUM INVESTMENT Class A: $250,000 Class B: $100,000

Jeannette Robi ns on

Class A/B Combination: $250,000

jeannette@bluelake-capital.com WIRE DEADLINE

(210) 740-5431

W ithin 3 days of signing the PPM

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INVESTMENT

S U M M A RY

8

Purchase Price

$78.3M

Vintage

2002

No of Units

344

Hold Time

5 years

Cap Rate (T12)

4.3%

Occupancy (as of 5/15/210)

96%

DSCR

1.85

Equity Required (Total)

$28.6M*

Equity Required (Class A)

$1M

Class A IRR and Avg. Annual Return

8%

Class A Investor Equity Multiple

1.4x

Equity Required (Class B)

$27.6M

Class B Investor Average Annual Return**

6%

Class B Investor Equity Multiple

1.74x

Class B Investor Average Annual Return***

14.73%

Class B Internal Rate of Return (IRR)

12%-13%

* Subject to change **Excludes proceeds from sale ***Includes proceeds from sale

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THE OPPORTUNITY Blue Lake Capital has identified Estates at Crossroads, a 344-unit multifamily property located in 2620 N Berkeley Lake Road NW Duluth, GA 30096 for acquisition (“Property”). Blue Lake Capital is extending Investors the opportunity to invest in BLV Estates Investors LLC, an entity that has been created to acquire the fee simple interest of the Property.

The Property is a 2002 institutional-quality asset that enjoys an exceptional A+ location, great amenity package, and an interior renovation opportunity. The business plan is to renovate the unit interiors in order to better compete with nearby properties, while increasing rents, as well as adding new amenities.

Distributions will be made monthly. Investors will receive the cash distribution first. Blue Lake will be paid after a 6% and 8% annualized cash return are distributed to our Class A and Class B investors.

Blue Lake will hold the Property for 5 years to maximize growth in equity value from operating income. Blue Lake may refinance the debt in order to return most investor equity while continuing to realize returns.

DEBT FINANCING Conservative Loan*

Principal Balance

$57,930,000

Loan to Purchase Price

74%

Interest Rate

~3%

Interest Only

60 months

Term Amortizing Period (Years) * Subject to final approval from lender

5-7 years 30

INVESTMENT

HIGHLIGHTS

11

12

INVESTMENT SUMMARY STRONG WEALTH PRESERVATION OPPORTUNITY

SPONSOR PROVEN TRACK RECORD DURING COVID

While the stock market has been volatile, investors have

Blue Lake Capital owns multifamily units across the

been focusing on investing in other, safer investments

U.S. and successfully implemented value-add strategy

such as multifamily real estate. Estates at Crossroads

throughout the Southeast. The Blue Lake team has a

presents a great opportunity for such investors. At this

diverse

time, investing in a strong market with high income

financing, asset management, disposition and value-

earner tenants, is what makes the deal solid, as strong

add execution. We are very hands-on when it comes to

markets might be impacted less than others.

asset management, and the assets we have been

background

in

multifamily

acquisitions,

managing have performed very well during the Ellie Perlman is personally investing her money, and her

pandemic. Since April 2020, we have collected

family’s money, in Estates at Crossroads.

between 94% to 100% of rents month over month.

We have implemented hands-on strategies to lower costs and maximize collections, and pushed rents by up to 39% during COVID, increasing our portfolio Net Operating Income by a weighted average of up to 30% compared to pre-COVID average. Additionally, Blue Lake Capital is exiting 2 deals in Atlanta, after holding them for ONLY 21 months, and anticipating a net return of 25% IRR to investors.

INVESTMENT SUMMARY CONSERVATIVE UNDERWRITING

VALUE ADD PLAN

Those who have invested with us in the past know

Current ownership has only partly renovated some of

that we are very conservative in our underwriting,

the units (that still have carpet throughout, old style

and this time is no different, though we took our

countertop and backsplash), leaving more room for

conservatism to the next level. Our underwriting

Blue Lake Capital to renovate 100% of the units and

includes

bring the Property up to market standard, and charge

properties

lower are

premiums

than

charging,

older

higher

nearby vacancy,

modest $116-$162 premiums.

concessions and bad debt, even though the Property has been preforming well during COVID.

EXIT STRATEGY

Nearby renovated comps charge rents that are

Blue Lake plans to hold the property for 5 years, and

higher by up to $173, while an *older* nearby

then to sell it to an institutional buyer. Blue Lake will

property is charging $299 more than Estates at

also examine refinancing prior to selling the property,

Crossroads. This proves that the market is willing

as long as it is attainable. This is a conservative deal.

to pay a premium, and that there is significant

We have underwritten the deal at over 50 basis points

room for growth, both of which mitigate risk for

higher cap rate at exit, to account for market

investors. Even though the market indicates a

fluctuations.

$299

premiums

is

possible,

Blue

Lake

has

underwritten the deal to an average premium of only $128.

W H AT M A KES TH I S D EA L UN I Q UE ?

STRONG PERFORMANCE DURING COVID

STRONG TENANT BASE

Estates at Crossroads is performing well during the

In COVID era, it’s not only about location, but also

COVID-19 pandemic.

has

about the strength of the tenant base, both of which

minimal concessions and bad debt, while maintain

have been Blue Lake’s focus. Estates at Crossroads has

high occupancy of 96%. In the last 3 quarters, the

a strong and desirable tenant base, including tech,

property has increased rents by an average of 5.4%.

medical and business owners. An indication to the

The Property’s income grew 7% in the past 12

strength of its tenant base, out of 344 tenants, only 6

months.

tenants owe rent to current ownership, which is about

Estates

at

Crossroads

1.7% of all tenants. * Source: Yardi Matrix property report, 5/15/2021

Effective Rent 1,400 1,200 1,000 800 600 400 200 0 2013

2014

2015 Pro perty

2016

2017 Submarket

2018

2019 Market

* Source: Yardi Matrix property report 5/15/2021

2020

W H AT M A KES TH I S D EA L UN I Q UE ?

RENT ARE SIGNIFICANTLY BELOW MARKET

In addition, the partly renovated units have dated

The Property’s rents are below market – whether

backsplash and countertops. The classic units have

compared to classic and renovated comps. Nearby

white appliances.

renovated comps rents are higher by up to $173, while an *older* nearby property is charging $299

Blue Lake Capital will install modern apartment unit

more than Estates at Crossroads. This proves the

finishes such as stainless-steel appliances, vinyl plank

market is willing to pay a premium, and that there is

flooring, new lighting and hardware, new backsplash,

significant room for growth, both of which mitigate

etc.

risk for investors. Blue Lake has underwritten the deal to

an

average

premium

of

only

$128

to

be

conservative.

INSTITUTIONAL SELLER KEPT THE ASSET IN GREAT CONDITION

Estates at Crossroads is owned by an institutional TRUE & PROVEN VALUE-ADD OPPORTUNITY

seller who kept the property in great condition, with

Estates at Crossroads is a very well-maintained

minimal

property with a substantial value-add component.

opportunity to focus on unit renovation and increasing

Though the asset is of institutional quality and built in

rents.

2002, none of the units have been fully renovated, leaving ample room for rent growth. The partly renovated units still have carpet throughout, while faux wood flooring is the #1 request from tenants.

deferred

maintenance,

leaving

us

the

AT TRACTIVE AMENITIES PACKAGE

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AT TRACTIVE AMENITIES PACKAGE

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CONSERVATIVE UNDERWRITING ASSUMPTIONS DURING COVID RENT GROWTH/PREMIUMS

Though we have achieved up to 39.4% rent growth (up to $375)

on our other

Atlanta properties, and though other older comps rents are up to $299 higher than the Property, we have underwritten the deal at $162 rent increases only. Blue Lake intends to push rents even higher but underwritten to a conservative number to remain conservative.

BAD DEBT/DELIQUENCIES

The Property’s bad debt has been around 2.3% in the past 12 months and 1.8% in the past 30 days. Despite the downward trending in bad debt and the decrease in unemployment in the U.S. market in general, we assumed higher bad debt at 2.25% in Y1.

CONCESSIONS

The Property’s concessions have been been historically low (<1%), and recently was down to almost 0%. Despite its strong performance, we underwritten the deal assuming 0.2% concession (almost $7K a year), and a growing amount of concessions year over year, just to be on the safe side.

CASH RESERVES

Blue Lake is raising capital for cash reserves at approx. $0.8M to account for any major changes in the economy in the near future, that might impact operations and income.

NET OPERATING INCOME (NOI) GROWTH

Though Blue Lake’s portfolio in the Atlanta MSA has been increasing by over 20% during COVID., and though we plan to increase the Property’s Net Operating Income (NOI) during Year 1, we have underwritten only 1% increase in NOI during the first year of operations.

BUSINESS PLAN HIGHLIGHTS

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U N I T R E N O VAT I O N

Blue Lake Capital plans to complete interior renovations for an expected budget of appx. $6,000 per unit. This will yield a premium of $116162 per month rent for each renovated unit. In addition, Blue Lake will offer tenants in-unit washers and dryers, and charge $40 premium per unit.

Estates at Crossroad's amenities are renovated, and its curb appeal is great. The property’s exterior restriping

the

cosmetic parking

lot,

touch-ups,

• Amazon Lockers: the Property has the great amenities, but lacks the very desirable Amazon package lockers, which tenants have been requesting current management. Blue Lake will add the lockers and charge tenants $7 a

• Fenced Yards: Blue Lake will build fenced

ENHANCE PROPERTY APPEAL

mainly

A D D I T I O N A L I N C O M E C R E AT I O N

month.

2

requires

4

such

rebranding,

as

power

washing, purchase new pool furniture, etc.

yards for tenants reserved parking for a $65 monthly premium.

• Washer/Dryer: Blue Lake will offer tenants inunit washers and dryers for $40 premiums.

• Tech Package: Blue Lake will offer tenants an advanced

3

COST REDUCTION

We have underwritten the deal at a 42% expense ratio. Blue Lake manages assets in the Atlanta MSA at expense ratio of 30%-47% and will implement a cost reduction plan at Estate at Crossroads. The savings from the cost reduction plan is not included in the underwriting to remain conservative.

tech

package,

including

thermostat at $35 premium per month.

NEST

B L U E L A K E C A P I TA L R E N O VAT I O N

TRUE VALUE ADD POTENTIAL CLASSIC UNITS

PA R T LY R E N O V AT E D U N I T S

BLUE LAKE PREMIUM VALUE-ADD SCOPE: Granite countertops

CLASSIC

PARTIAL RENOVATION

BLUE LAKE RENOVATION

88

256

344

Wood, Shaker

Wood, Shaker

Wood, Shaker

White

Stainless Steel

Stainless Steel

New cabinet doorknobs

Carpet, Tile

Carpet, Tile

Vinyl Flooring

Faux wood flooring

Countertops

Laminate

Laminate

Granite

Backsplash

Old

Old

Adhesive Tile

Hardware

Original

Original

Upgraded

Lighting

Original

Upgraded

Upgraded

No. of Units Cabinets Appliances Floors

Upgraded backsplash Brushed nickel hardware Pendant lighting package

Stainless steel appliances* *In classic units only

Estates at Crossroads is well positioned for an implementation of a value-add program to increase rents, since none of the units have not been fully renovated and are subject to Blue Lake’s renovation program. Nearby renovated comps rents are higher by up to $173, while an *older* nearby property is charging $300 more than Estates at Crossroads. This proves the market is willing to pay a premium, and that there is significant room for growth, both of which mitigate risk for investors. Blue Lake has underwritten the deal to an average premium of only $128 to be conservative.

TWO-TIER EQUITY STRUCTURE OFFERS MAX FLEXIBILITY Investors can choose to invest in Class A, Class B, or a combination of both

DEBT

$57,930,000*

Classes. The two-tier structure gives investors the flexibility to choose the right investment class that matches their goals.

Class A Investors earn an 8% Preferred Return and sit behind the debt in the

capital stack. This tier is limited to only $1M of the total capital. The minimum

CLASS A INVESTORS

$1,000,000

CLASS B INVESTORS

$27,600,000

investment to participate in the A share class is $250,000. This tier offers

GENERAL PARTNER

stronger projected cash flow and reduced risk compared to Class B Investors.

70% Ownership

30% Ownership

Class A investors have no upside in the sale at the end of the business plan

Projected total capitalization of Estates at Crossroads

or any capital event. This tier is for investors who prefer stronger cashflow

* Subject to change

and minimal risk.

Class B Investors earn a 6% Preferred Return after Class A has been paid.

Upon the disposition of Estates at Crossroads, payment of debt and any pref equity, return of Class A and Class B original investments, unpaid Class A and Class B yearly returns, Class B Investors will get 70% of the profits from the sale. The minimum investment for Class B is $100,000. This tier has reduced projected cash on cash returns; however, offers greater participation upon disposition compared to Class A Investors. This tier is for investors who want to maximize their returns over the life of the investment.

Investors can split their investment between both Class A and Class B shares, as long as their total investment is $250,000 minimum.

Blue Lake will only be paid after cash returns are distributed in full to Investors.

Alternative share classes are available for minimum $500,000 investments.

PROPERTY OV E RV I E W

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PROPERTY DESCRIPTION

APARTMENT UNIT DESCRIPTION Wall Finishes Ceiling Heights/Finishes Balconies/Porches

Interior finishes include painted drywall/sheetrock walls 9' Ceilings Single doors to balcony and private entry units

SITE DESCRIPTION Address Tax Parcel Folio ID Site Area

Windows

Windows are double-pane aluminum frame windows

No. of Buildings

Floor Finishes

Commercial grade carpet flooring with tile flooring in kitchens and bathrooms

Density

Cabinets & Countertops Kitchen & Appliances Bathroom Fixtures Washers and Dryers

High quality white wood cabinets and laminate countertops Stainless steel appliances in renovated units and white appliances in classic units Bathrooms include fiberglass tubs with ceramic tile surrounds, porcelain sink and toilets All units have washer/dryer connections. 27 units have washer/dryer appliances

Parking Spaces Parking Ratio Garages Ingress/Egress Landscaping Pool Mail Service Trash Removal

2620 N Berkeley Lake Rd NW, Duluth, GA 30096 Gwinnett County: R6260 406 / City of Duluth: 6260406 21.95 acres 26 total buildings including: 13 residential buildings, one clubhouse, one carwash, 11 garages/storage builgins 15.67 units per acre 558 total parking spaces 1.62 spaces per unit 66 total garages Two gated entrances off of N Berkeley Road Extensive mature landscaping including grass, pinestraw, mulch, trees and seasonal planting beds One resort-style swimming pool One mail kiosk Valet trash throughout property

STRUCTURAL DESCRIPTION Foundation/Footings Exterior Walls

The foundation consists of poured reinforced concrete/ perimeter footings. Groudn floors are concrete slab over compacted fill.

Exterior Paint

Brick and hardboard siding exteriors All building exteriors were painted in 2016

Roof

All roofs were replaced in 2016

System

Exterior Doors

Exterior doors are insulated metal with dead bolts, door knockers and peepholes

BUILDING SYSTEMS HVAC Electrical Plumbing Fire Protection

The units feature individual "central" HVAC units with exterior mounted compressors Electrical service in all apartments includes a good complement of outlets and switches Plumbing consists of copper supply lines to the buildings and PVC lines within the buildings.

Fire alarms and sprinklers are located in each unit. Fire extinguishers are located in the breezeways

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INTERIOR FEATURES • Stainless Steel Appliances *

• Garden Tubs

• Custom Cabinetry

• Specious Closets

• Breakfast Bar

• Private Patios

• Double Vanity Sinks

• Work/Study Dens

• 9’ Ceilings

*In Select Units

• Ceiling Fans

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BEST IN CLASS AMENITY PACKAGE • Resort-Style Swimming Pool

• Access Controlled Gate

• Sundeck with Grilling Area

• Natural Trails

• Fitness Center

• Playground

• Dog Park

• Spacious Clubhouse

• Business Center

• Tennis Court

• Detached Garages

27

28

DESIRABLE UNIT MIX

Desirable Unit Mix & Current Market Rents Unit Type

Units

Size (SF)

Market Rent

Effective Rent

Effective Rent/SF

1BR – 1BA

138

810

$1,211

$1,148

$1.42

2BR – 1BA

41

940

$1,305

$1,231

$1.09

2BR – 2 BA

141

1,110

$1,367

$1,346

$1.05

3BR – 2BA

24

1,358

$1,681

$1,602

$1.09

Total/Avg

494

987

$1,319

$1,271

$1.29

3BR 2 4 UNITS

7%

1BR 1 3 8 UNITS

40%

2BR 1 8 2 UNITS

53%

29

FINANCIAL A N A LYS I S

30

PROPERTY RENTS ARE BELOW COMPS PROPERTY

AVG RENT

RENT / SF

DISTANCE

UNITS

BUILT

OCCUPANCY

AVG SF

2.5 miles

175

1983

96%

852

$1,216

$1.43

2 The Maddox

3.3 miles

372

2007

95%

1,208

$1,703

$1.40

3 The Paramont

2.0 miles

266

1985

99%

840

$1,244

$1.48

4 The Prescott

3.0 miles

384

2001

98%

1,077

$1,528

$1.42

5 Colonial Grand

2.0 miles

424

1998

97%

1,061

$1,468

$1.38

6 The Rey on Reynolds

2.3 miles

289

2021

65%

1,018

$1,661

$1.63

344

2002

96%

987

$1,271

$1.29

318

1999

92%

1,009

$1,470

$1.46

1

The Eclipse

S Estates at Crossroads Averages* *Averages do not include subject property

PROJECTED RETURNS

Class A Investors

Class A - Investor Returns Based on $1,000,000 Investment Investment Investor Annual Percent Return Investor Return on Investment

($1,000,000)

Year 1

Year 2

Year 3

Year 4

Year 5

8.0%

8.0%

8.0%

8.0%

8.0%

$80,000

$80,000

$80,000

$80,000

$80,000

Return from Disposition Yearly Return

$1,000,000 ($1,000,000)

$80,000

$80,000

$80,000

$80,000

Total Return

$1,080,000

Total Equity Average Cash on Cash*

8%

Total Average Return**

8%

Internal Rate of Return (IRR)

8.3%

Equity Multiple

1.4X

$1,400,000

Class B Investors

Class B - Investor Returns Based on $1,000,000 Investment Investment Investor Annual Percent Return Investor Return on Investment

($1,000,000)

Year 1

Year 2

Year 3

Year 4

Year 5

Total Return

($1,000,000)

Total Equity

$28,000,000

4.5%

5.5%

6.4%

6.6%

6.7%

Average Cash on Cash*

6%

$45,109

$54,853

$64,062

$65,930

$66,872

Total Average Return**

14.73%

Return from Disposition Yearly Return

$573,000

$45,109

$54,853

$64,062

$65,930

$1,439,555

Internal Rate of Return (IRR)

$1,506,427

Equity Multiple

$1,736,381

12%-13% 1.74X

* Excludes proceeds from sale ** Includes proceeds from sale

PROFORMA Year 1

Year 2

Year 3

Year 4

Year 5

Jul 2021

Jul 2022

Jul 2023

Jul 2024

Jul 2025

REVENUE

Gross Market Rent Premiums Achieved Loss to Lease Gross Potential Rent

Vacancy Concessions Bad Debt Model Unit Employee Unit Effective Rental Income

5,525,371

5,716,860

5,911,328

6,090,693

121,030

393,125

556,396

573,278

590,477

(200,330)

(178,688)

(155,210)

(129,466)

(101,983)

5,446,072

5,931,297

6,312,515

6,534,505

6,273,413

6,761,907

(272,304)

(296,565)

(315,626)

(326,725)

(7,006)

(7,630)

(8,120)

(8,406)

(338,095) (8,698)

(122,537)

(118,626)

(94,688)

(65,345)

(67,619)

(15,969)

(17,392)

(18,510)

(19,161)

(19,828)

-

-

-

-

-

5,028,257

5,491,084

5,875,571

6,114,868

6,327,667

298,575

304,060

316,180

328,827

341,981

77,966

234,886

316,122

328,767

341,917

307,836

311,160

317,384

323,731

330,206

684,376

850,107

949,686

981,326

1,014,104

5,712,633

6,341,191

6,825,257

7,096,194

7,341,771

OTHER INCOME

Other Income New Other Income Utility Reimbursements (RUBS) Total Other Income Effective Gross Income EXPENSES

Payroll

(441,211)

(445,976)

(454,896)

(463,994)

(473,274)

Repairs and Maintenance

(60,200)

(60,850)

(62,067)

(63,309)

(64,575)

Contract Services

(52,121)

(52,684)

(53,738)

(54,813)

(55,909)

Turnover

(77,400)

(78,236)

(79,801)

(81,397)

(83,025)

(341,078)

(344,762)

(351,657)

(358,690)

(365,864)

General/Admin

(68,800)

(69,543)

(70,934)

(72,353)

(73,800)

Marketing

(51,600)

(52,157)

(53,200)

(54,264)

(55,350)

Insurance

(108,360)

(109,530)

(111,721)

(113,955)

(116,234)

-

-

-

-

-

Utilities

Franchise Tax Misc Real Estate Taxes Property Management Fee Total Expenses Net Operating Income

-

-

-

-

-

(1,059,579)

(1,231,506)

(1,268,451)

(1,306,504)

(1,345,700)

(171,379)

(190,236)

(204,758)

(212,886)

(220,253)

(2,431,728)

(2,635,481)

(2,711,223)

(2,782,165)

(2,853,983)

3,280,904

3,705,710

4,114,034

4,314,029

4,487,789

CAPEX BUDGET INTERIOR RENOVATIONS & NEW INCOME

Interior Renovations Washers/Dryers

$2,096,514 $317,000

Fenced Yards

$48,000

Tech Packages

$13,125

Amazon Package Lockers

$20,000

TOTAL

$2,494,639

EXTERIOR & DEFERRED MAINTENANCE

Parking Lot Restriping

$75,000

Clubhouse Improvements

$25,000

Pool Furniture

$25,000

Playground Improvement

$5,000

Rebranding

$35,000

Amenity Upgrade

$20,000

Power Wash

$25,000

Landscaping

$50,000

Misc.

$86,000

TOTAL

$260,000

CONTINGENCY

$284,064

TOTAL CAPEX BUDGET

$3,124,703

35

36

MARKET

OV E RV I E W

37

38

PROPERTY IS CLOSE TO MULTIPLE MEDICAL CENTERS

ATLANTA IS ONE OF THE NATION’S TOP MARKETS ATLANTA MULTIFAMILY RENTS GROWTH HITS DOUBLE DIGITS

Record Demand, Strong Population Growth Drive Rents to New Heights From demand, to renter search activity to sales volume, Atlanta’s multifamily sector continues to smash records. In yet another milestone, the region recently hit 10% year-over-year apartment rent growth,

marking an impressive turnaround compared to this time last year when the coronavirus pandemic was causing significant disruption everywhere, including the multifamily market.

Multifamily owners in Atlanta can raise rents at an unprecedented pace due to the region’s strong population growth and net migration trends, consistently robust demand in urban, suburban and exurban areas and a cooling construction pipeline.

Source: CoStar Insight Atlanta Multifamily Rent Growth Hits Double Digits (5/17/2021)

Source: CoStar Insight Atlanta Multifamily Rent Growth Hits Double Digits (5/17/2021)

PROPERTY IS LOCATED IN STRONG GWINNET T SUBMARKET

PROPERTY IS LOCATED IN STRONG GWINNET T SUBMARKET

PROPERTY IS LOCATED IN STRONG GWINNET T SUBMARKET

PROPERTY IS LOCATED IN STRONG GWINNET T SUBMARKET

MANAGEMENT T EA M

45

46

MANAGEMENT TEAM

ELLIE PERLMAN, FOUNDER & CEO – SPONSOR

The founder of Blue Lake Capital, Ellie Perlman, has over 10 years of experience in real estate investment, law, and property management. Ellie leads Blue Lake, which owns and manages multifamily properties across the U.S., with a focus on TX, FL and GA. At Blue Lake, Ellie oversees the acquisitions and asset management of the company's portfolio.

Ellie started her career in Israel as a commercial real estate lawyer, leading commercial real estate transactions for Israel’s largest development company. Later, as a property manager for one of Israel's most prominent oil and gas companies, she oversaw properties worth over $100M. Ellie holds an MBA from MIT Sloan School of Management and Bachelor's and Masters in Law from Bar-Ilan University in Israel and a Bachelor's Degree in Law. Ellie is a Forbes author on real estate investing.

MANAGEMENT TEAM

VEENA JETTI - SPONSOR

Veena Jetti is the founding partner of Vive Funds, a unique commercial real estate firm that specializes in curating conservative opportunities for investors. Veena brings a dynamic perspective to targeting, acquiring, managing, and operating assets using best practices combined with cutting edge technologies. Her professional expertise includes driving corporate strategy and business development opportunities.

After graduating from the University of Illinois at Chicago with a degree in Finance at 20 years old, she pursued her passion of real estate. Veena has over a decade of real estate experience and over $1B+ in real estate assets over her career in both the startup world as well as the corporate world. Her current portfolio features multifamily, commercial, retail, and residential assets. Because of her diverse background, she is often a panelist and speaker for various podcasts, global conferences, and radio shows.

MANAGEMENT TEAM

Blue Lake Capital specializes in buying value-add apartment communities and apply a comprehensive plan to increase profitability. The Company has focus across strong markets such as Texas, Georgia, and Florida. Blue Lake Capital is a results-oriented company that has in-depth experience from beginning to end in all aspects of real estate, such as uncovering off-market opportunities, identifying and implementing unique investment strategies, financial analysis, value enhancement, property management, debt and equity financing, cash flow optimization, and value growth.

DAVE SHERBAL – ASSET MANAGER

MARK GLEASON – ACQUISITIONS MANAGER

Dave oversees Blue Lake Capital assets. He has over twenty-five years

Mark is an experienced multifamily finance professional with over ten

experience in asset management, due diligence, value-add, budgeting &

years of experience serving the real estate finance, acquisition, and

oversight, and asset repositioning. His background experience includes

development industry.

management of over 14,000 units across 10 states, with an emphasis on

oversees the acquisition process for Blue Lake. Over the past ten years,

multifamily value-add properties.

Mark has underwritten and closed over $2.0 Billion in multifamily real

Mark joined Blue Lake Capital in 2020 and

estate transactions, while underwriting over $1Billion of multifamily Dave holds multiple degrees including an M.B.A. from State University of

annually. Mark has experience in a vast array of financial and partnership

New York (SUNY) at Buffalo, NY, a in B.S. Accounting, Magma Cum

structures including mezzanine financing, tax credit financing, and ground

Laude, (SUNY) at Buffalo, NY and is affiliated with the American Institute

lease structures.

of Certified Public Accountants. In addition, Dave is an Advisory Board Member of Neighborhood Pay Services, serving actively since 2014.

Prior to joining Blue Lake Capital, Mark has served as Vice President of Finance for a national apartment owner operator with 56,000 units under management.

Mark’s prior acquisitions roles include publicly traded

companies and privately held owner operators with portfolios of $1-2 Billion.

MANAGEMENT TEAM

JEANNETTE ROBINSON – INVESTOR RELATIONS DIRECTOR

PRIYA RAJE – INVESTOR RELATIONS MANAGER

Jeannette is responsible for facilitating the company’s strategy, growth

Priya Raje's background includes a dedicated focus to investor

opportunities, and business initiatives with Blue Lake Capital’s investor

experience and strategy. Her external marketing focus is dedicated to

community. She manages consistent communications and provides

ensure that investors receive white glove treatment throughout the

support and oversight with all investor relations. Prior to joining Blue

lifecycle of their investment. Additionally, Priya manages all financial

Lake, Jeannette worked as Chief Relationship Officer for a technology-

transactions to ensure the utmost integrity and care is taken on each

based company focused on providing support to the veteran community.

asset.

Jeannette has more than 20 years’ experience in volunteering and

Priya's background includes a Bachelor's degree in Health Services

working with non-profits, where she specialized in donor relations. She

Management. Prior to joining Vive, she was a strategic manager at

has received numerous awards and honors for leadership, most recently

another nine-figure apartment portfolio targeting similar assets. She

named “Woman of the Year” by Operation Supply Drop for her work and

drives value through implementing and developing strategic and cutting-

service to the veteran community. Jeannette received her BAAS from

edge processes to drive efficiency and optimization from the top down.

Howard Payne University, and spends her free time serving as a

Her total portfolio experience is over $400,000,000 of multifamily assets.

passionate advocate for children with disabilities.

MANAGEMENT TEAM

JEN BELLUCCI – MARKETING MANAGER

UZIEL SINVANI – ACQUISITIONS ANALYST

Jen leads the marketing arm of Blue Lake Capital and communicates the

Uziel enhances the Blue Lake Capital's team by gathering and analyzing

company’s mission and vision across all social media platforms. She

financial and operational data to further improve the acquisition process

develops and executes marketing campaigns responsible for expanding

through data interpretation, identification of trends, and overall

Blue Lake’s brand by applying various marketing methods and data

operational efficiencies. His insights and continual monitoring help ensure

analytics tools. Jen brings a solid and diverse background in social media

an additional layer of quality control remains intact for all Blue Lake

marketing, campaign management and online communications. She

Capital transactions. Uziel's background includes a blend of both

received a Bachelor’s in Science and Master’s in Art from the University of

technical and operational leadership. He formerly served in the Israeli Air

Massachusetts.

Force and is currently pursuing his BA in Social Sciences Management.

DISCLAIMER & CONFIDENTIALITY

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 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.

The views and opinions expressed in this presentation are those of Blue Lake Capital LLC (“Blue Lake Capital” or “Company”) and are subject to change based on market and other conditions. Although the information presented herein has been obtained from and is based upon sources Blue Lake Capital believes to be reliable, no representation or warranty, expressed or implied, is made as to the accuracy or completeness of that information. No assurance can be given that the investment objectives described herein will be achieved. Reliance upon information in this material is at the sole discretion of the reader.

This data is for illustrative purposes only. Past performance of indices of asset classes does not represent actual returns or volatility of actual accounts or investment managers and should not be viewed as indicative of future results. The investments discussed may fluctuate in price or value. Investors may get back less than they invested.

Forward-looking information contained in these materials is subject to certain inherent limitations. Such information is information that is not purely historical in nature and may include, among other things, expected structural features, anticipated ratings, proposed or target portfolio composition, proposed diversification or sector investment, specific investment strategies and forecasts of future market or economic conditions. The forward-looking information contained herein is based upon certain assumptions, which are unlikely to be consistent with, and may differ materially from, actual events and conditions.

In addition, not all relevant events or conditions may have been considered in developing such assumptions. Accordingly, actual results will vary and the variations may be material. Prospective investors should understand such assumptions and evaluate whether they are appropriate for their purposes. These materials may also contain historical market data; however, historical market trends are not reliable indicators of future market behavior.

Information in these materials about the Manager, its affiliates and their personnel and affiliates and the historical performance of portfolios it has managed has been supplied by the Manager to provide prospective investors with information as to its general portfolio management experience and may not be viewed as a promise or indicator of the Issuer's future results. Such information and its limitations are discussed further in the sections of these materials in which such information is presented.

Past performance of indices or asset classes does not represent actual returns or volatility of actual accounts or investment managers and should not be viewed as indicative of future results. The comparisons herein of the performances of the market indicators, benchmarks or indices may not be meaningful since the constitution and risks associated with each market indicator, benchmark, or index may be significantly different. Accordingly, no representation or warranty is made to the sufficiency, relevance, important, appropriateness, completeness, or comprehensiveness of the market data, information, or summaries contained herein for any specific purpose.

Past performance is not indicative of comparable future results. Given the inherent volatility of the securities markets, it should not be assumed that investors will experience returns comparable to those shown here. Market and economic conditions may change in the future producing materially different results than those shown here. All investments have inherent risks.

Blue Lake Capital LLC. All Rights Reserved. No part of this document may be reproduced, stored, or transmitted by any means with the express written consent of Blue Lake Capital.

CONTACT INFORMATION ELLIE PERLMAN

Founder & Chief Operating Officer

BLUE LAKE CAPITAL

Direct +1 401 200-8380

10 Dorrance St, Suite 700

info@bluelake-capital.com

Providence, RI 02903

JEANNETTE ROBINSON

Office: +1 401 200 8380

Director, Investor Relations

Fax: +1 419 931 1398

Direct +1 210 740 5431

www.ellieperlman.com

jeannette@bluelake-capital.com

www.bluelake-capital.com

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