Waterstone

EXCLUSIVE INSTITUTIONAL-LEVEL INVESTMENT OPPORTUNITY A Stellar & Performing Class B Asset with Significant Value-Add Opportunity in One of Atlanta’s Most Affluent Submarkets

3

CONTACT INFORMATION ELLIE PERLMAN

JEANNETTE ROBINSON

BLUE LAKE CAPITAL

Founder & CEO

Director, Investor Relations

83 Morse St., Bldg. 6

Direct +1 401 200-8380

Direct +1 210 740 5431

Norwood, MA 02062

info@bluelake-capital.com

jeannette@bluelake-capital.com

Office: +1 401 200 8380

4

INVESTMENT S U M M A RY

DEBT FINANCING

THE OPPORTUNITY Blue Lake Capital has identified Waterstone, a 296-unit multifamily property located in 1851 Satellite Blvd, Buford, GA, 30518 for acquisition (“Property”). Blue Lake Capital is extending Investors the opportunity to invest in BLV Waterstone Investors, LLC, an entity that has been created to acquire the

fee simple interest of the Property.

The Property is a 2011 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

Conservative Loan*

interiors in order to better compete with nearby properties, while

Principal Balance

increasing rents, as well as adding new amenities.

Loan to Purchase Price

$61,600,000 75.8%

Interest Rate

3%

Distributions will be made monthly. Investors will receive the

Interest Only

60 months

cash distribution first. Blue Lake will be paid after a 6% and 8%

Term

annualized cash return are distributed to our Class A and Class

Amortizing Period (Years)

5 years

B investors. * Subject to final approval from lender

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.

30

Purchase Price

$81.25MM

Vintage

2011

No of Units

296

Hold Time

5 years

Cap Rate (T12)

3.23%

Occupancy (as of 10/9/21)

96%

DSCR

1.51

Equity Required (Total)

$28,400,000*

Equity Required (Class A)

$285,000

Class A IRR**

8%

Class A Equity Multiple

1.4x

Equity Required (Class B)

$28,115,000

Class B Average Cash-On-Cash**

5.6% - 6.2%

Class B Equity Multiple

1.6x – 1.8x

Class B Average Annual Return***

14% - 16%

Class B Internal Rate of Return

12%-13%

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

INVESTMENT HIGHLIGHT

WHY INVEST IN WATERSTONE? TOP PERFORMING ASSET IN ONE OF ATLANTA’S

SPONSOR PROVEN TRACK RECORD

MOST AFFLUENT SUBMARKETS

Blue Lake Capital owns $530M+ AUM, specializing in Waterstone ownership has raised rents by 27%, with

multifamily

units

no concessions, while the Property maintained 96%

is

occupancy and very minimal bad debt.

throughout the Southeast. The Blue Lake team has a

implementing

diverse

across

the

professional,

background

in

U.S.

Our

expertise

value-add

strategies

multifamily

acquisitions,

Waterstone is located in Buford, one of Atlanta’s most

financing, asset management, disposition, and value-

sought after submarkets.

The average household

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

income in 1-mile radius is above $100,000/year, and

asset management, and the assets we have been

single home prices range between $300,000 and

managing

$500,000.

pandemic. Since April 2020, we have collected

have

performed

very

well

during

the

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

Ellie Perlman is personally investing her money, and her family’s money, in Waterstone.

We have implemented hands-on strategies to lower costs and maximize collections, and pushed rents

by up to 59.9% 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 has exited 2 deals in Atlanta, after holding them for ONLY 22

months, with a net return of 25% IRR to investors.

INVESTMENT SUMMARY CONSERVATIVE UNDERWRITING BACKED BY

VALUE ADD PLAN

HARD DATA

Current ownership has only marginally renovated 10 Those who have invested with us in the past know that

units (which is an outdated-looking kitchen), leaving

we are very conservative in our underwriting, and this

room for Blue Lake Capital to renovate 100% of the

time is no different. Our underwriting includes lower

units and bring the Property up to market standard.

premiums than older nearby properties are charging, higher vacancy, concessions and bad debt, even

EXIT STRATEGY

though the Property is a stellar performer even during COVID.

Blue Lake plans to hold the property for 5 years, and to then sell it to an institutional buyer. Blue Lake will also

Nearby renovated comps charge rents that are higher

examine refinancing prior to selling the property, as long

by a weighted average up to $548. This proves that

as it is attainable. This is a conservative deal. We have

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

underwritten the deal at over 80 basis points higher cap

is significant room for growth, both of which mitigate

rate at exit, to account for market fluctuations.

risk for investors.

Even though the market indicates a significant rent growth potential, we have underwritten to lower premiums, just to be on the safe side.

INVESTMENT SUMMARY EXCEPTIONALLY DESIRABLE TENANT BASE

MARKET SENTIMENT

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

This proves the market is willing to pay a premium, and

about the strength of the tenant base, both of which

that there is significant room for growth, both of which

have been Blue Lake’s focus. Waterstone has a

mitigate risk for investors.

strong and desirable tenant base, including tech, medical, and business owners. An indication to the

INSTITUTIONAL SELLER KEPT THE ASSET IN GREAT

strength of its tenant base, out of 296 tenants, only 3

CONDITION

tenants owe rent to current ownership, which is 1% of all tenants.

Waterstone is owned by an institutional seller – one of America’s most known families, who kept the property in

RENT ARE SIGNIFICANTLY BELOW MARKET

great condition, with minimal deferred maintenance, leaving us the opportunity to focus on unit renovation

The Property’s rents are below market – whether compared to classic or renovated comps. OLDER and SMALLER renovated comp rents are higher

by a weighted average of up to $548 below market. To be conservative, we underwritten the deal at about $300 rent premiums only.

and increasing rents.

TWO TIER EQUITY OPTIONS Investors can choose to

invest in Class A, Class B, or a

Projected Total Capitalization of Waterstone

combination of both Classes. The two-tier structure gives investors

the flexibility to choose the right investment class that matches their

$57,930,000*

goals.

DEBT

CLASS A INVESTORS

$1,000,000 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 investment to participate in the A share

70% Ownership

CLASS B INVESTORS

$27,600,000 GENERAL PARTNER

30% Ownership

class is $250,000. This tier offers stronger projected cash flow and reduced risk compared to Class B Investors. Class A investors have

* Subject to change

no upside in the sale at the end of the business plan or any capital event. This tier is for investors who prefer stronger cashflow

Investors can split their investment between both

and minimal risk.

Class A and Class B shares, as long as their total investment is $250,000 minimum.

Class B Investors earn a 5.6% Preferred Return after Class A has been paid. Upon the disposition of Waterstone, payment of debt and

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

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, it 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.

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

CONSERVATIVE UNDERWRITING NET OPERATING INCOME (NOI) GROWTH Though Blue Lake’s portfolio in the Atlanta MSA has been increasing during COVID., and though

we plan to increase the Property’s Net Operating Income (NOI) during Year 1, we have underwritten very conservatively.

This is a strong asset, that attracts medical, tech, and business professional tenants, and is located in a fantastic A+ area in Atlanta, and yet we are underwriting to a (negative) - 3%

NOI decrease during the first year of operations, since we’d like to stay very conservative.

BAD DEBT The Property’s bad debt has been minimal (<1%) in the past 3 months, and the numbers are getting better. Despite the downward trend in bad debt and the decrease in unemployment in the

U.S. market in general, we assumed higher bad debt at 2% in Y1.

CONCESSIONS The Property’s concessions have been been historically low (0.01% - 0.03%), and recently was down to almost 0%. Despite Waterstone’s strong performance, we've underwritten the deal

assuming the highest concession amount in the past 12 months year over year, just to be on the safe side.

CASH RESERVES Blue Lake is raising capital for cash reserves at approx. $0.7M to account for any major changes

in the economy in the near future, that might impact operations and income.

BUSINESS PLAN HIGHLIGHTS 1

4

UNIT RENOVATION

ADDITIONAL INCOME CREATION

Blue Lake Capital plans to complete interior

• Amazon Lockers: The Property has

renovations for an expected budget of appx.

great amenities, but lacks the very

$11,400 per unit.

This will yield a premium of

desirable Amazon package lockers,

$300 per month rent for each renovated unit. In

which tenants have been requesting

addition, Blue Lake will offer tenants in-unit

from current management. Blue Lake

washers and dryers, and charge $40 premiums

will add the lockers and charge

per unit.

tenants $7 a month.

• Valet Trash: Blue Lake will add a

2

valet trash service and charge tenants

UPGRADE AMENITIES The fitness center and game rooms will be renovated,

3

and

the

leasing

office

will

be

an increased mandatory monthly fee of $30.

transformed into a collaborative workplace, which

• Washer/Dryer: Blue Lake will offer

is a desired feature by the property’s tenants, with

tenants in-unit washers and dryers for

whom many work from home.

$40 premiums.

ENHANCE CURB APPEAL The property’s exterior requires mainly cosmetic touch-ups, such as restriping the parking lot, power washing, landscaping refresh, etc.

TRUE VALUE-ADD POTENTIAL

BLUE LAKE PREMIUM VALUE-ADD SCOPE: • Granite Countertops • Stainless Steel Appliances • Upgraded Backsplash

• Brushed Nickel Hardware • Modern Lighting Package • Pendant Lighting Package • Modern Cabinetry • Faux Wood Flooring CLASSIC UNITS

•

OLDER & SMALLER renovated comp

rents

are

higher

by

a

weighted average of up to $548

below market.

•

To be conservative, we underwritten the

deal

at

about

$300

rent

premiums only.

BLUE LAKE RENOVATION

BIG POTENTIAL FOR AMENTITIES RENOVATING THE LEASING OFFICE Currently

underutilized,

the

leasing

center would be transformed to a

collaborative workspace with modern finishes and décor.

Small breakout

spaces will help make efficient use of the

area. A much-needed Package

Locker will also be placed there.

UPGRADE THE FITNESSCLASSIC CENTER UNITS New equipment, modern, muted paint colors, and enhanced

lighting fixtures

will elevate the fitness center to a stateof- the-art workout space.

REVAMPING THE GAME AREA

A game selection akin to residents’ favorite

entertainment

venues

will

establish the game room as a go-to gathering space.

BLUE LAKE RENOVATION

PROPERTY OV E RV I E W

ATTRACTIVE AMENTITIES PACKAGE

CLUBHOUSE

COMMUNITY KITCHEN

GAME ROOM WITH BILLIARDS AND SHUFFLEBOARD

FITNESS CENTER

WI-FI SUNDECK AND PAVILION

DOG PARK

WI-FI BUSINESS CENTER WITH COFFEE BAR

SWIMMING POOL

CHARCOAL AND GAS GRILLS

PRIVACY GATES

AUTO DETAILING ATTACHED & DETACHED BAY GARAGES

ATTRACTIVE AMENTITIES PACKAGE

PROPERTY UNIT INTERIORS

DESIRABLE UNIT MIX

Unit Mix & Current Market Rents Unit Type

Units

Size (SF)

Market Rent

Effective Rent

1 Bedroom 2 Bedrooms 3 Bedrooms

92 164 40

864 1,196 1,496

$1,238 $1,600 $1,835

$1,236 $1,491 $1,614

Effective Rent/SF $1.43 $1.25 $1.08

Total/Avg

296

1,133

$1,519

$1,428

$1.26

UNIT MIX BREAKDOWN 3 Bedroom 40 Units 31%

2 Bedroom 164 Units 55%

1 Bedroom 92 Units 14%

FINANCIAL

A N A LYS I S

COMPS ARE BELOW MARKET

PROPERTY 1 Preserve at Mill Creek 2 3

Preston Hills

Summer Park

4 Century at the Ballpark

DISTANCE 1.43 miles 1.93 miles 2.28 miles

2.4 miles

5 Waterstone Averages* *Averages do not include subject property

UNITS

BUILT

OCCUPANCY

AVG SF

AVG RENT

RENT / SF

400

2001

96%

985

$1,573

$1.60

464

2000

97%

1,111

$1,677

$1.51

358

2001

96%

1,077

$1,760

$1.63

248

2013

100%

1,090

$1,638

$1.50

296

2011

95%

1,133

$1,428

$1.26

353

2005

97%

1,079

$1,615

$1.50

PROJECTED RETURNS

Annual Percent Return Return on Investment Return from Disposition Total Return

Annual Percent Return Return on Investment Return from Disposition Total Return

Class A - Investor Returns Based on $1,000,000 Investment Investment Year 1 Year 2 Year 3 8.0% 8.0% 8.0% ($1,000,000) $80,000 $80,000 $80,000

Year 4 8.0% $80,000

Year 5 8.0% $80,000 $1,000,000 $1,400,000

Class B - Investor Returns Based on $1,000,000 Investment Investment Year 1 Year 2 Year 3 4.5% 5.55% 6.34% ($1,000,000) $45,000 $55,500 $63,400

Year 4 6.41% $64,100

Year 5 6.51% $65,100 $1,430,165 $1,723,165

Class A Investors

Class B Investors

Conservative

Base

Optimistic

Average Cash on Cash*

8%

Average Cash on Cash**

5.6%

6%

6.2%

Total Average Return**

8%

Average Annual Return**

14%

15%

16%

Equity Multiple

1.4X

Equity Multiple

1.6x

1.7x

1.8x

Internal Rate of Return

8.3%

Internal Rate of Return

12%

12.5%

13%

* Excludes proceeds from sale ** Includes proceeds from sale

PROFORMA

Year 1 Nov 2022 REVENUE Gross Market Rent Premiums Achieved Loss to Lease Gross Potential Rent Vacancy Concessions Bad Debt Model Unit Employee Unit

Year 2 Nov 2023

Year 3 Nov 2024

Year 4 Nov 2025

Year 5 Nov 2026

5,494,604 284,491 (329,091) 5,450,005 (272,500) (1,847) (109,000) (18,563) -

100.00% 5.18% -5.99% 99.19% 4.96% 0.03% 1.98% 0.34% 0.00%

5,688,982 908,809 (312,288) 6,285,503 (314,275) (2,131) (62,855) (19,220) -

5,859,652 1,137,842 (292,358) 6,705,135 (335,257) (2,273) (33,526) (19,796) -

6,035,441 1,171,977 (270,952) 6,936,467 (346,823) (2,351) (34,682) (20,390) -

6,216,505 1,207,136 (247,998) 7,175,643 (358,782) (2,432) (35,878) (21,002) -

5,048,094

91.87%

5,887,023

6,314,284

6,532,220

6,757,549

OTHER INCOME Other Income New Other Income

190,449 47,577

3.47% 0.87%

193,948 107,198

201,679 111,486

209,747 115,945

218,136 120,583

Utility Reimbursements (RUBS) Total Other Income

250,873 488,899

66.35% 8.90%

253,582 554,728

258,654 571,819

263,827 589,519

269,104 607,823

Effective Gross Income

5,536,994

100.8%

18,706

6,441,751

6,886,103

7,121,738

7,365,372

EXPENSES Payroll

BLC (421,800)

% 7.62%

Per Unit 1,425

(426,356)

(434,883)

(443,580)

(452,452)

Repairs and Maintenance Contract Services Turnover Utilities General/Admin Marketing Insurance Franchise Tax Misc Real Estate Taxes

(92,367) ($82,732) (73,583) (389,448) (70,758) (66,600) (135,788) (16,742) (1,088,920)

1.67% 1.49% 1.33% 7.03% 1.28% 1.20% 2.45% 0.00% 0.30% 19.67%

312 280 249 1,316 239 225 459 57 3,679

(93,365) (83,626) (74,378) (393,654) (71,522) (67,319) (137,254) (16,923) (1,153,452)

(95,232) (85,298) (75,866) (401,527) (72,952) (68,666) (139,999) (17,261) (1,176,521)

(97,137) (87,004) (77,383) (409,557) (74,411) (70,039) (142,799) (17,606) (1,200,051)

(99,080) (88,744) (78,930) (417,749) (75,900) (71,440) (145,655) (17,958) (1,224,052)

Property Management Fee Total Expenses

(143,962) (2,582,699)

2.60% 46.6%

486 8,725

(167,486) (2,685,334)

(179,039) (2,747,244)

(185,165) (2,804,735)

(191,500) (2,863,460)

2,954,295

53.4%

9,981

3,756,418

4,138,859

4,317,004

4,501,911

Effective Rental Income

Net Operating Income

CAPEX BUDGET

INTERIOR RENOVATIONS & NEW INCOME

Interior Renovations

$3,670,165

Washers/Dryers

$296,000

Amazon Package Lockers

$40,000

TOTAL

$4,006,165

EXTERIOR & DEFERRED MAINTENANCE Parking Lot Restriping

$40,000

Clubhouse Improvements

$60,000

New Sign

$25,000

Dog Park

$15,000

Gym Expansion

$40,000

Power Wash

$50,000

Landscaping

$50,000

Deferred Maintenance

$50,000

TOTAL Contingency TOTAL CAPEX BUDGET

$330,000 $433,617 $4,769,782

MARKET

OV E RV I E W

ATLANTA IS A LEADING MARKET

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, along with a cooling construction pipeline.

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

STRONG DEMOGRAPHIC & SCHOOLS

Located 4 miles from Waterstone, the historic

AREA DEMOGRAPHICS

3-Mile

5-Mile

2021 Average Household Income

$103,097

$108,539

2021 Average Home Value

$400,000

$600,000

Source: CBRE Research Analytics

Waterstone is zoned for A-rated, top-ranked, Lanier High School, Lanier Middle School, and Sugar Hill Elementary.

TOP-RANKED, A-RATED SCHOOLS Lanier High School Lanier Middle School Sugar Hill Elementary School

city of Buford is one of the largest and oldest cities in Gwinnett County. Residents enjoy convenient access to Lake Lanier, a thriving arts community, and the largest shopping destination in the

state at the Mall of

Georgia. Over the last decade, Buford has grown by 40.2%.

MAJOR RETAIL MINUTES AWAY

The Mall of Georgia has Established itself as a Dining and Entertainment Destination Just 1.7 miles from Waterstone, Mall of Georgia is a 1.8-million-square-foot super-regional shopping center featuring a unique outdoor shopping village modeled after an old-fashioned Georgia town square. Ranked as the Atlanta Metro’s largest mall, the center has six major department stores, more than 225 specialty retailers, eight full-service restaurants, and a variety of other

on-site eateries. Anchored by Mall of Georgia, a robust retail corridor has developed in the mall’s surrounding area along Buford Drive.

MAJOR RETAIL MINUTES AWAY

The I-85 Industrial Corridor Continues to Grow

Amazon’s New State-Of-The-Art Facility Added 1,000 Jobs in Q3 2020 Known as “Project Rocket”, the distribution center stands 70 feet tall, allowing for 3 million SF of fulfillment space.

Employees

at the new fulfillment center pack and ship

customer orders. Additionally, Amazon has hired roles in human resources,

operations

management, safety,

security, finance and information technology. The state-ofthe-art development

carried a total price tag of $237

million.

RECENT ANNOUNCEMENTS: •Wheel Pros (after-market wheel distribution): 333,000 SF •Ta Chen International (stainless steel distribution): 310,500 SF •Ainfox (e-commerce): 236,000 SF

Northeast/I-85 Industrial Submarket has historically been the favored area of bulk tenants.

The Northeast/I-85 Industrial Submarket has absorbed nearly 5.1 million SF of product in the past year. Developers continue to be optimistic about the submarket with 5.8 million SF under construction.

MANAGEMENT T EA M

MANAGEMENT TEAM

ELLIE PERLMAN, FOUNDER & CEO – SPONSOR

VEENA JETTI, JV PARTNER – SPONSOR

The founder of Blue Lake Capital, Ellie Perlman, has over a

Veena Jetti is the founding partner of Vive Funds, a unique

decade of experience in real estate investment, law, and

commercial real estate firm that specializes in curating

property management. Ellie leads Blue Lake Capital, which

conservative opportunities for investors. Veena brings a

owns and manages over 2,600 multifamily units across the

dynamic perspective to targeting, acquiring, managing, and

U.S., worth over $530MM.

operating assets using best practices combined with cutting edge technologies. Her professional expertise includes driving

Ellie started her career in Israel as a commercial real estate

corporate strategy and business development opportunities.

lawyer, leading real estate transactions for Israel’s largest development company. Later, as a property manager for one

After graduating from the University of Illinois at Chicago with

of Israel's most prominent oil and gas companies, she oversaw

a degree in Finance at 20 years old, she pursued her passion

properties worth over $100M.

of real estate. Veena has over a decade of real estate experience and over $1B+ in real estate assets over her

Ellie holds an MBA from MIT Sloan School of Management Bachelor's and Masters in Law from Bar-Ilan University in Israel, as well as a Bachelor's Degree in Law. Ellie is a Forbes author on real estate investing, and the host of the podcast “REady2Scale”.

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

NYAL MC DONOUGH, DIRECTOR, ASSET MANAGMENT

MARK GLEASON – DIRECTOR, ACQUISITIONS

Nyal is a multifamily Asset Manager for Blue Lake Capital and

Mark is an experienced multifamily finance professional with

oversees the company’s portfolio across the U.S. He has over

over ten years of experience serving the real estate finance,

twenty-five years experience in asset management, due

acquisition, and development industry. Mark joined Blue Lake

diligence, value-add, budgeting & oversight, and asset

Capital in 2020 and oversees the acquisition process for Blue

repositioning.

Lake. Over the past ten years, Mark has underwritten and closed over $2.0 Billion in multifamily real estate transactions,

Prior to joining Blue Lake Capital, Nyal was a Senior Asset Manager for Taurus Investment Holdings responsible for 3 industrial portfolios totaling 12.3M sqft and $940M in asset value. The portfolio was comprised of 172 assets and 578

while underwriting over $1Billion of multifamily annually. Mark has experience in a vast array of financial and partnership

structures including mezzanine financing, tax credit financing, and ground lease structures.

tenants in six major markets.

He is a Board Member and former President of the Real Estate Investment Advisory Council (Boston), and a member of the Urban Land Institute, Nyal has a Bachelor of Arts degree in finance from Boston College and a Master’s of Business Administration from Babson College.

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 –DIRECTOR, INVESTOR RELATIONS

PRIYA RAJE – MANAGER, INVESTOR RELATIONS

Jeannette is responsible for facilitating the company’s strategy,

Priya Raje's background includes a dedicated focus to investor

growth opportunities, and business initiatives with Blue Lake

experience and strategy. Her external marketing focus is

Capital’s

consistent

dedicated to ensure that Vive Fund's investors receive white

communications and provides support and oversight with all

glove treatment throughout the lifecycle of their investment.

investor relations. Prior to joining Blue Lake, Jeannette worked

Additionally, Priya manages all financial transactions to ensure

as Chief Relationship Officer for a technology-based company

the utmost integrity and care is taken on each asset.

investor community.

She

manages

focused on providing support to the veteran community.

Priya's background includes a Bachelor's degree in Health Jeannette has more than 20 years’ experience in volunteering and working with non-profits, where she specialized in donor relations. She has received numerous awards and honors for

Services Management. Prior to joining Vive, she was a strategic manager at another nine-figure apartment portfolio targeting similar assets.

leadership, most recently named “Woman of the Year” by Operation Supply Drop for her work and service to the veteran

community. Jeannette received her BAAS from Howard Payne University and spends her free time serving as a passionate advocate for children with disabilities.

She drives value through implementing and developing

strategic and cutting-edge processes to drive efficiency and optimization from the top down. Her total portfolio experience is over $500,000,000 of multifamily assets.

MANAGEMENT TEAM

BRENNA SHELTON – MARKETING SPECIALIST

UZIEL SINVANI – ACQUISITIONS ANALYST

Brenna supports the marketing arm of Blue Lake Capital and

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

communicates the company’s mission and vision across all

analyzing financial and operational data to further improve the

social media platforms. She collaborates on design, strategy,

acquisition process through data interpretation, identification of

and execution of all marketing and public relations campaigns,

trends, and overall operational efficiencies. His insights and

and provides reporting and data analytics in support of

continual monitoring help ensure an additional layer of quality

growing the Blue Lake Capital brand.

control remains intact for all Blue Lake Capital transactions.

Uziel's background includes a blend of both technical and

Brenna is a recent graduate of Emerson College, having

operational leadership.

acquired a diverse and strong foundation in marketing and psychology while earning her BA in Journalism.

He formerly served in the Israeli Air Force and is currently pursuing his BA in Social Sciences Management.

CONTACT INFORMATION ELLIE PERLMAN

JEANNETTE ROBINSON

BLUE LAKE CAPITAL

Founder & CEO

Director, Investor Relations

83 Morse St., Bldg. 6

Direct +1 401 200-8380

Direct +1 210 740 5431

Norwood, MA 02062

info@bluelake-capital.com

jeannette@bluelake-capital.com

Office: +1 401 200 8380

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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.