Coweta, Coweta, OK BOV

BROKER OPINION OF VALUE 60 Units | 2013 Placed in Service 613 S. Guthrie Ave. Coweta, OK 74429

INVESTMENT ADVISORS JEFF IRISH

Senior Managing Director 208.286.5013 jeff.irish@berkadia.com

BRANDON GRISHAM

Senior Managing Director 253.653.3313 brandon.grisham@berkadia.com

JOHNATHAN SMITH

Senior Director 206.856.1707 johnathan.smith@berkadia.com

TREVOR MADDEN

Director 406.459.9221 trevor.madden@berkadia.com

BOISE OFFICE 6225 North Meeker Place Suite 210 Boise, ID 83713 www.Berkadia.com

TA B L E O F C O N T E N T S

PROPERTY DETAILS................................ 3 PROPERTY FINANCIALS .. ....................... 8 RENT COMPARABLES........................... 19 THE LOCATION . . ...................................... 27

P R O P E R T Y D E TA IL S PROPERTY INFORMATION Property...............................................Coweta Apartments Address................................................. 613 S. Guthrie Ave. City, State, Zip..........................................Coweta, OK 74429 Units.................................................................................60 Year Built......................................................................1972 Year Rehabbed.............................................................2013 Style............................................................2-Story Garden Net Rentable SF....................................46,012 Square Feet Acreage...............................................................4.66 Acres Density......................................................12.88 Units/Acre County................................................................... Wagoner

UNITS

60

RENTABLE SF

46,012

YEAR BUILT

1972

LOT SIZE (ACRES)

4.66

Strong AMI Growth in Wagoner County with a 19.87% Increase Since 2016

Well-Maintained LIHTC Property with a HAP Contract Covering 58 Units

Coweta is a Suburb of Tulsa and is Located Less Than 30 Minutes Southeast of Downtown Tulsa

Conveniently Located Near Shopping, Dining, Schools, and Major Transportation Arteries

REGULATORY % Units Affordable......................................................100% Year Placed in Service..................................................2013 Defer Tax Credit Start Year?........................................... Yes End of Initial Compliance.............................................2028 End of LIHTC Restrictions............................................2053 HAP Renewal Effective Date.................................. 1/1/2013 HAP Contract Term................................................20 Years Qualified Contract Eligible.............................................. No Located in QCT................................................................. No Located in Opportunity Zone........................................... No

3

PROPERTY OVERVIEW Coweta Apartments is a 60-unit affordable housing community located in Coweta, OK. The property is conveniently located minutes from shopping, dining, schools, and major transportation arteries.

The property was built in 1972 and rehabbed and placed in service in 2013 under the Section 42 Low-Income Housing Tax Credit (LIHTC) program. There is an existing regulatory agreement in place which require all units to be rented to income qualifying residents earning no more than 50% of the Area Median Income (AMI) limits, which are provided by the Oklahoma Housing Finance Agency (OHFA).

Additionally, the property is also a recipient of HUD Section 8 project based rental income assistance pursuant to a Housing Assistance Payment (HAP) contract. The current contract has an effective beginning date of January 1, 2013 and provides assistance for all units. Within the contract, Section 2(b) states that the contract runs for an effective term of 20 years, expiring on January 1, 2033. Per the Preservation Exhibit, the Renewal Contract shall automatically renew for a term of 29 months beginning on January 1, 2033.

Coweta Apartments offers one, two, and three bedroom apartment homes. Residents enjoy a variety of community amenities that include a basketball court, BBQ and picnic area, business center, and on-site laundry facility.

4

AMENITIES

• Basketball Court

• Handicap Accessible

• BBQ/Picnic Area

• Landscaped Grounds

• Business Center

• Laundry Facility

BOUNDARY AERIAL

S Ave G E 151st St S

NORTH

5

POINTS OF INTEREST

Oak Grove Shopping Center

Coweta Indian Health Center Coweta Central Elementary School Sloat Junior High School

Coweta High School Coweta Intermediate High School

72

51 B Southside Elementary School NORTH

6

L O C AT I O N Q U I C K FA C T S

C O W E TA , O K COWETA APARTMENTS NEIGHBORHOOD QUICK FACTS

11.1k Population

NEIGHBORHOOD SHOPPING

The Shops of Broken Arrow

12.2mi 300k 40

DEMAND DRIVER

4.6mi 250 138k

FROM THE PROPERTY

SF SHOPPING DESTINATION STORES AND RESTAURANTS

Target | Marshalls | rue21 | Maurices | Famous Footwear

FROM THE PROPERTY

JOBS SUPPORTED SF OCCUPIED

Walmart Supercenter

(Within Three Miles)

23%

N E I G H B O R H O O D CO N V E N I E N C E S

DEMAND DRIVER

8.8mi 400 100k

Renter Occupied Housing Units (Within Three Miles)

145.7k

$

Median Housing Unit Value (Within Three Miles)

60.3k

$

Median Household Income (Within Three Miles)

43% of Workers are in Blue-Collar Positions (Within Three Miles)

7

Within a five-mile drive of the property

P R I M A RY E D U C AT I O N

3.3k 8 550

FROM THE PROPERTY

JOBS SUPPORTED SF FACILITY

Zeeco, Inc - World Headquarters

DEMAND DRIVER STUDENTS SERVED

SCHOOLS AND CENTERS JOBS SUPPORTED

Southside ES (PK-3) | Heritage IGC (4-6) | Sloat Jr HS (7-8) Intermediate HS (9) | Coweta HS (10 - 12)

11.9mi 680 375k

FROM THE PROPERTY

JOBS SUPPORTED SF FACILITY

Flight Safety International - Manufacturing

FINANCIAL ANALYSIS

8

BOV

PRICE PER UNIT

PROFORMA NOI

PROFORMA

$3,400,000

$56,667

$227,879

6.70%

CAP R ATE

UNIT MIX

UNIT TYPE

SET-ASIDE

NUMBER OF UNITS

UNIT SIZE (RSF)

ASKING RENT

ASKING RENT PSF

PROFORMA RENT

PROFORMA RENT PSF

MAX TC RENT

CURRENT UA

MAX NET TC RENT

FMR

1 BR 1 BTH

HAP

8

624

$702

$1.13

$730

$1.17

$755

$0

$755

$724

8

4,992

$5,616

$6,040

$6,040

$5,792

624

$702

$1.13

$730

$1.17

$755

$755

$724

24

679

$785

$1.16

$816

$1.20

$906

$906

$925

24

16,296

$18,840

$21,744

$21,744

$22,200

679

$785

$1.16

$816

$1.20

$906

$906

$925

883

$1,003

$1.14

$1,043

$1.18

$1,046

$0

$1,046

$1,219

$0.91

$806

$0.91

$1,046

$0

1 BD UNIT TOTAL 1 BD UNIT AVG 2 BR 1 BTH

HAP

2 BD UNIT TOTAL 2 BD UNIT AVG 3 BR 1 BTH

HAP

3 BR 1 BTH

50%

3 BD UNIT TOTAL

26 2

883

$806

28

24,724

$27,690

883

$989

46,012

$52,146

767

$869

3 BD UNIT AVG

TOTAL AVERAGE

60

$5,841

$19,594

$28,733 $1.12

$1,026

$1.16

$54,167 $1.13

$903

$1.18

$0

$1,046

$1,219

$29,288

$29,288

$34,132

$1,046

$1,046

$1,219

$57,072

$57,072

$62,124

$951

$951

$1,035

*The unit mix above was based on the 7/15/2022 rent roll and the January 1, 2022 HUD Rent Schedule. Analysis assumes a 5th year rent adjustment of 4% in the proforma year.

9

RENT & INCOME LIMITS

Wagoner County Effective Year: 2022

Area Median Income: $82,200

Unit Breakdown by Unit Type

TAX CREDIT PROPERTY INCOME LIMITS

13%

4 7% 4 0%

1 BD

2 BD

3 BD

Asking Rents to Fair Market Rents

$1,200 $1,000 $800

$906 $755

$702

$989

$1,046

$785

$600 $400 $200 $0

1 BD

2 BD

Asking Rent

10

Net Max Rent

Coweta Apartments is a Section 42 LIHTC property which means that federal tax credits were given to help finance the property. The property currently is required to hold the maximum rent charged at or below a level considered appropriate for the households that have incomes at or below 50% of the local Area Median Income (AMI) for the county.

3 BD

INCOME

50%

1 Person

$28,200

2 Person

$32,200

3 Person

$36,250

4 Person

$40,250

5 Person

$43,500

6 Person

$46,700

7 Person

$49,950

TAX CREDIT MAXIMUM ALLOWABLE RENTS Set Aside

Unit Type

# of Units

Max TC Rent

50%

1 BD

8

$755

50%

2 BD

24

$906

50%

3 BD

28

$1,046

HISTORICAL RENT & INCOME LIMITS WAGONER COUNTY | OKLAHOMA AMI GROWTH

2 BD 50% RENT GROWTH $950

$80,000 $75,000

5 Yr Avg

5.25%

10 Yr Avg

3.20%

$900

5 Yr Avg

4.77%

10 Yr Avg

2.97%

$850

$70,000

$800

$65,000

$750

$60,000

$700

$55,000

$650

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2012

2013

OCAF

2015

2016

2017

2018

2019

2020

2021

2022

2021

2022

FMR GROWTH 1, 2, & 3 BD UNITS

3.00%

2.50%

2014

$1,000

5 Yr Avg

2.32%

10 Yr Avg

2.21%

$950

5 Yr Avg

2.36%

10 Yr Avg

2.27%

$900 $850

2.00%

$800 1.50%

$750 $700

1.00% 2012

11

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2012

2013

2014

2015

2016

2017

2018

2019

2020

FINANCIAL SUMMARY

Name Address City, State, Zip County Market Segment

PROPERTY INFORMATION

Year Built Placed In Service Defer Credit Start Year?

End of Initial Tax Credit Compliance Period End of LIHTC Restrictions Qualified Contract Eligible QCT/DDA Designated Opportunity Zone

Coweta Apartments 613 S. Guthrie Ave. Coweta, OK 74429 Wagoner Family 1972 2013 Yes December 31, 2028 December 31, 2053 No No No

Total Number of Units Net Rentable Square Feet

60 46,012 SF

FINANCIAL SUMMARY PRICING FIGURES - WITH PROPOSED NEW FINANCING BROKER'S OPINION OF VALUE Price per Unit Price per SF PROFORMA 10-Year Leveraged Cash IRR%* Closing Cost Capital Expense Total Acquisition Cost

Low $3,100,000 $51,667 $67.37

High $3,400,000 $56,667 $73.89

17.73%

13.63%

$31,000 $150,000 $3,281,000

$34,000 $150,000 $3,584,000

* IRR Analysis assumes 1.00% in Closing Costs, $2,500 per unit in Capital Expense, 7.25% exit cap, with a 4.00% cost of sale.

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IMPORTANT INFORMATION & DISCLAIMER: The information contained herein is assumed to be correct and market-supported. Output produced from this model should not be considered an appraisal. Projections are forecasts and are not to be considered fact. The information contained in this file is privileged and confidential; it is intended only for use by Berkadia® and their clients. This file may not be reproduced physically or in electronic format without the express written consent of Berkadia. Not responsible for errors and omissions.

FINANCIAL SUMMARY FINANCING PROPOSED NEW FINANCING Program Loan to Value % Interest Rate Interest Only Period (Months) Amortization Period (Years) Total Acquisition Cost Loan Amount Loan Fee @ 1.00% Down Payment Annual Debt Service - I/O Annual Debt Service - P&I

13

VITAL DATA Low Agency 80.00% 4.30% 24 30

High Agency 78.00% 4.30% 24 30

$3,281,000 $2,480,000 $24,800 $825,800

$3,584,000 $2,652,000 $26,520 $958,520

$106,640 $147,274

$114,036 $157,488

YE 2021 CAP Rate NOI Year 1 Debt Service Net Cash Flow After Debt Service Cash on Cash %

Low 5.86% $181,507 $106,640 $74,867 9.07%

High 5.34% $181,507 $114,036 $67,471 7.04%

Jun. 2022 T12 CAP Rate NOI Year 1 Debt Service Net Cash Flow After Debt Service Cash on Cash %

Low 6.28% $194,746 $106,640 $88,106 10.67%

High 5.73% $194,746 $114,036 $80,710 8.42%

Jan.2022 HUD Rent Schedule / Underwritten Exp CAP Rate NOI Year 1 Debt Service Net Cash Flow After Debt Service Cash on Cash %

Low 6.62% $205,175 $106,640 $98,535 11.93%

High 6.03% $205,175 $114,036 $91,139 9.51%

PROFORMA CAP Rate NOI Year 1 Debt Service Net Cash Flow After Debt Service Cash on Cash %

Low 7.35% $227,879 $106,640 $121,239 14.68%

High 6.70% $227,879 $114,036 $113,843 11.88%

NET PROCEEDS NET PROCEEDS BROKER'S OPINION OF VALUE OUTSTANDING DEBT AND MISCELLANEOUS PAYABLES 1st Mortgage Balance (Estimate) Prepayment Penalty Total Debt & Other Payables Net Proceeds After Debt and Other Payables

As of Dec' 2021 2021

LOW

HIGH

$3,100,000

$3,400,000

$2,025,023 $60,751 $2,085,774 $1,014,226

$2,025,023 $60,751 $2,085,774 $1,314,226

AFFORDABILITY RESTRICTIONS LIHTC Regulatory Agreement: 100% of units at 50% AMI with restrictions running through December 2053.

HAP Contract: HAP Contract covering 58 units effective 1/1/2013 and has a 20 year term, expiring on 1/1/2033. Per the Preservation Exhibit, Renewal Contract shall automatically renew for a term of 29 months beginning on 1/1/2033. Annual contract rent increases are based on OCAF, with comparability adjustments occurring every 5 years. The last 5-year market comparability adjustment occurred on 1/1/2018. Analysis assumes a new 5th year rent adjustment in the proforma year.

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INCOME & EXPENSES

YE 2021

OPERATIONAL ANALYSIS

PER UNIT

Jun. 2022 T12

Jan.2022 HUD Rent Schedule / Underwritten Exp

PER UNIT

PER UNIT

PROFORMA

PER UNIT

INCOME Gross Potential Rent Gain (Loss) to Lease POTENTIAL RENTAL INCOME % Increase over Prior Year Economic Loss Vacancy Loss Bad Debt Concessions Total Economic Loss

(0.03%)

1.53% 0.21% (0.17%) 1.57%

NET RENTAL INCOME Other Income Late Fees Laundry and Vending Revenue Misc. Other Income Total Other Income EFFECTIVE GROSS INCOME

$614,633 ($205) $614,428

$10,244 ($3) $10,240

0.03%

($9,374) ($1,296) $1,045 ($9,625)

($156) ($22) $17 ($160)

1.09% 0.09% (0.29%) 0.89%

$619,401 $160 $619,561 0.84%

$10,323 $3 $10,326

0.00%

($6,753) ($551) $1,810 ($5,494)

($113) ($9) $30 ($92)

2.50% 0.00% 0.00% 2.50%

$625,752 $0 $625,752 1.00%

$10,429 $0 $10,429

0.00%

($15,644) $0 $0 ($15,644)

($261) $0 $0 ($261)

2.50% 0.00% 0.00% 2.50%

$650,008 $0 $650,008 3.88%

$10,833 $0 $10,833

($16,250) $0 $0 ($16,250)

($271) $0 $0 ($271)

$604,803

$10,080

$614,067

$10,234

$610,108

$10,168

$633,758

$10,563

$967 $1,364 $1,781 $4,112

$16 $23 $30 $69

$1,105 $1,236 $2,295 $4,636

$18 $21 $38 $77

$1,105 $1,236 $2,295 $4,636

$18 $21 $38 $77

$1,105 $1,236 $2,295 $4,636

$18 $21 $38 $77

$608,915

$10,149

$618,703

$10,312

$614,744

$10,246

$638,394

$10,640

(1)

(2)

EXPENSES FIXED OPERATIONAL EXPENSE Total Real Estate Property Taxes Total Property Insurance Expense Total Property Utility Expense TOTAL FIXED OPERATIONAL EXP

4.04% 5.68% 15.72% 25.43%

$24,575 $34,562 $95,715 $154,852

$410 $576 $1,595 $2,581

4.12% 5.60% 17.55% 27.27%

$25,507 $34,623 $108,579 $168,709

$425 $577 $1,810 $2,812

5.63% 5.63% 17.66% 28.93%

$34,628 $34,623 $108,579 $177,830

$577 $577 $1,810 $2,964

5.42% 5.42% 17.01% 27.86%

$34,628 $34,623 $108,579 $177,830

$577 $577 $1,810 $2,964

VARIABLE OPERATIONAL EXPENSE Total Maint. Contract Services Total Repairs & Maintenance Total Administrative Expenses Total Leasing & Marketing Total Payroll and Salary Expenses Property Management Fee Compliance Fees TOTAL VARIABLE OPERATIONAL EXP

5.18% 9.95% 4.40% 0.43% 17.44% 4.09% 0.30% 41.80%

$31,536 $60,615 $26,786 $2,641 $106,215 $24,918 $1,846 $254,557

$526 $1,010 $446 $44 $1,770 $415 $31 $4,243

3.96% 8.17% 4.40% 0.42% 17.06% 4.03% 0.30% 38.35%

$24,506 $50,553 $27,253 $2,599 $105,561 $24,946 $1,830 $237,248

$408 $843 $454 $43 $1,759 $416 $31 $3,954

3.99% 4.88% 4.43% 0.00% 17.17% 4.00% 0.30% 34.77%

$24,506 $30,000 $27,253 $0 $105,561 $24,590 $1,830 $213,739

$408 $500 $454 $0 $1,759 $410 $31 $3,562

3.84% 4.70% 4.27% 0.00% 16.54% 4.00% 0.29% 33.63%

$24,506 $30,000 $27,253 $0 $105,561 $25,536 $1,830 $214,685

$408 $500 $454 $0 $1,759 $426 $31 $3,578

TOTAL FIXED & VARIABLE EXPENSES

67.24%

$409,408

$6,823

65.61%

$405,957

$6,766

63.70%

$391,569

$6,526

61.48%

$392,515

$6,542

$18,000

$300

$18,000

$300

$18,000

$300

$18,000

$300

$427,408

$7,123

$423,957

$7,066

$409,569

$6,826

$410,515

$6,842

$181,507

$3,025

$194,746

$3,246

$205,175

$3,420

$227,879

$3,798

Reserves & Replacements TOTAL OPERATING EXPENSES NET OPERATING INCOME

15

70.19%

68.52%

66.62%

64.30%

(3)

(4) (5) (6)

NOTES TO INCOME & EXPENSES NOTES TO PROFORMA (1)

Potential Rental Income: Analysis assumes Proforma Rents as displayed on the Unit Mix Page.

(2)

Vacancy: Based on the rent roll from 7/22/2022, occupancy is 100%. Analysis uses a 2.5% vacancy factor going forward.

(3)

Real Estate Taxes: See notes below.

(4)

Repairs and Maintenance: Analysis reduces "Contract Repairs - REAC" line item expenses in line with market comparables.

(5)

Marketing and Leasing: Analysis removes this expense moving forward due to the HAP contract and the historical occupancy averaging 98%+ over the previous 24 months.

(6)

Property Management Fee: Adjustment based on market comparables.

REAL ESTATE TAX ANALYSIS Parcel #: 211184-00016-000000

Land Improvement Total Market Value Exemptions Value after Exemptions Assessment Ratio Assessed Value Tax Rate Ad Valorem Taxes Special Assessments Total Taxes Due

2021 $426,690 $1,842,293 $2,268,983 $0 $2,268,983 11.20% $254,126

Proforma $426,690 $2,803,310 $3,230,000 $0 $3,230,000 11.20% $361,760

9.572% $24,325 $0 $24,325

9.572% $34,628 $0 $34,628

Sale Price $3,400,000

Reassess To 95.00%

Notes Per the County Assessor's, taxes are calculated by utilizing an 11.2% assessment ratio and a 9.572% tax rate.

Analysis assumes that the property will be based on a reassessment at time of sale. Proforma real estate taxes are calculated using the current tax rate and an assessed value of 95% of the High BOV Price.

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CASH FLOW PROPERTY CASH FLOW ANALYSIS - ASSUMPTIONS CASH FLOW SUMMARY Gross Potential Rent Growth Other Income Growth Loss to Lease Vacancy Bad Debt Concessions Property Taxes Insurance Utilities Property Management Fee Other Expenses Replacement Reserves

17

Year 1

Year 2

Year 3

Year 4

Year 5

Year 6

Year 7

Year 8

Year 9

Year 10

NA NA 0.00% 2.50% 0.00% 0.00% NA NA NA 4.00% NA NA

2.00% 2.50% 0.00% 2.50% 0.00% 0.00% 3.00% 2.50% 2.50% 4.00% 2.50% 0.00%

2.00% 2.50% 0.00% 2.50% 0.00% 0.00% 3.00% 2.50% 2.50% 4.00% 2.50% 0.00%

2.00% 2.50% 0.00% 2.50% 0.00% 0.00% 3.00% 2.50% 2.50% 4.00% 2.50% 0.00%

4.00% 2.50% 0.00% 2.50% 0.00% 0.00% 3.00% 2.50% 2.50% 4.00% 2.50% 0.00%

2.00% 2.50% 0.00% 2.50% 0.00% 0.00% 3.00% 2.50% 2.50% 4.00% 2.50% 0.00%

2.00% 2.50% 0.00% 2.50% 0.00% 0.00% 3.00% 2.50% 2.50% 4.00% 2.50% 0.00%

2.00% 2.50% 0.00% 2.50% 0.00% 0.00% 3.00% 2.50% 2.50% 4.00% 2.50% 0.00%

2.00% 2.50% 0.00% 2.50% 0.00% 0.00% 3.00% 2.50% 2.50% 4.00% 2.50% 0.00%

4.00% 2.50% 0.00% 2.50% 0.00% 0.00% 3.00% 2.50% 2.50% 4.00% 2.50% 0.00%

CASH FLOW CASH FLOW SUMMARY

Year 2

Year 3

Year 4

Year 5

Year 6

Year 7

Year 8

Year 9

Year 10

INCOME Gross Potential Rent Gain (Loss) to Lease POTENTIAL RENTAL INCOME

$650,008 $0 $650,008

$663,008 $0 $663,008

$676,269 $0 $676,269

$689,794 $0 $689,794

$717,386 $0 $717,386

$731,734 $0 $731,734

$746,368 $0 $746,368

$761,296 $0 $761,296

$776,521 $0 $776,521

$807,582 $0 $807,582

Economic Operational Loss Vacancy Loss Bad Debt Concessions Total Operational Loss

($16,250) $0 $0 ($16,250)

($16,575) $0 $0 ($16,575)

($16,907) $0 $0 ($16,907)

($17,245) $0 $0 ($17,245)

($17,935) $0 $0 ($17,935)

($18,293) $0 $0 ($18,293)

($18,659) $0 $0 ($18,659)

($19,032) $0 $0 ($19,032)

($19,413) $0 $0 ($19,413)

($20,190) $0 $0 ($20,190)

NET RENTAL INCOME

$633,758

$646,433

$659,362

$672,549

$699,451

$713,440

$727,709

$742,263

$757,108

$787,393

$4,636

$4,752

$4,870

$4,992

$5,117

$5,245

$5,376

$5,510

$5,648

$5,789

EFFECTIVE GROSS INCOME

$638,394

$651,185

$664,232

$677,541

$704,568

$718,685

$733,085

$747,774

$762,757

$793,182

OPERATIONAL EXPENSES FIXED OPERATIONAL EXPENSE Total Real Estate Property Taxes Total Property Insurance Expense Total Property Utility Expense TOTAL FIXED OPERATIONAL EXP

$34,628 $34,623 $108,579 $177,830

$35,667 $35,489 $111,293 $182,449

$36,737 $36,376 $114,075 $187,188

$37,839 $37,286 $116,927 $192,052

$38,974 $38,218 $119,850 $197,042

$40,143 $39,173 $122,847 $202,163

$41,347 $40,153 $125,918 $207,418

$42,588 $41,156 $129,066 $212,810

$43,865 $42,185 $132,292 $218,343

$45,181 $43,240 $135,600 $224,021

VARIABLE OPERATIONAL EXPENSE Total Maint. Contract Services Total Repairs & Maintenance Total Administrative Expenses Total Leasing & Marketing Total Payroll and Salary Expenses Property Management Fee Compliance Fees

$24,506 $30,000 $27,253 $0 $105,561 $25,536 $1,830

$25,119 $30,750 $27,934 $0 $108,200 $26,047 $1,830

$25,747 $31,519 $28,632 $0 $110,905 $26,569 $1,830

$26,391 $32,307 $29,348 $0 $113,677 $27,102 $1,830

$27,051 $33,114 $30,082 $0 $116,519 $28,183 $1,830

$27,727 $33,942 $30,834 $0 $119,432 $28,747 $1,830

$28,420 $34,791 $31,605 $0 $122,418 $29,323 $1,830

$29,130 $35,661 $32,395 $0 $125,478 $29,911 $1,830

$29,859 $36,552 $33,205 $0 $128,615 $30,510 $1,830

$30,605 $37,466 $34,035 $0 $131,831 $31,727 $1,830

TOTAL VARIABLE OPERATIONAL EXP

$214,685

$219,880

$225,202

$230,654

$236,779

$242,512

$248,387

$254,405

$260,571

$267,494

TOTAL FIXED & VARIABLE EXPENSE

$392,515

$402,329

$412,390

$422,706

$433,821

$444,675

$455,805

$467,215

$478,914

$491,515

Replacement Reserves

$18,000

$18,000

$18,000

$18,000

$18,000

$18,000

$18,000

$18,000

$18,000

$18,000

TOTAL OPERATING EXPENSES

$410,515

$420,329

$430,390

$440,706

$451,821

$462,675

$473,805

$485,215

$496,914

$509,515

PROPERTY NET OPERATING INCOME

$227,879

$230,856

$233,842

$236,835

$252,747

$256,010

$259,280

$262,558

$265,842

$283,667

1ST MTG DEBT SERVICE EXPENSES First Mortgage Interest First Mortgage Principal TOTAL 1ST MTG DEBT SERVICE

$114,036 $0 $114,036

$114,036 $0 $114,036

$113,169 $44,319 $157,488

$111,226 $46,262 $157,488

$109,197 $48,291 $157,488

$107,079 $50,409 $157,488

$104,868 $52,620 $157,488

$102,560 $54,928 $157,488

$100,151 $57,337 $157,488

$97,636 $59,851 $157,488

CASH FLOW AFTER DEBT SERVICE

$113,843

$116,820

$76,354

$79,347

$95,260

$98,522

$101,793

$105,071

$108,355

$126,179

Total Other Income

18

Year 1

DEBT SERVICE COVERAGE RATIO INDICATED CAPITALIZATION RATE CASH ON CASH RETURN

2.00 6.70% 11.88%

2.02 6.79% 12.19%

1.48 6.88% 7.97%

1.50 6.97% 8.28%

1.60 7.43% 9.94%

1.63 7.53% 10.28%

1.65 7.63% 10.62%

1.67 7.72% 10.96%

1.69 7.82% 11.30%

1.80 8.34% 13.16%

RENT COMPARABLES

19

COWETA APARTMENTS OCCUPANCY

COMPARABLES AVERAGE OCCUPANCY

COWETA APARTMENTS CURRENT RENT/SF

COMPARABLES AVERAGE RENT/SF

100%

96%

$1.13

$0.96

RENT C OMPA R A BLE S M A P

20

RENT C OMPA R A BLE S SUMM A RY

#

PROPERTY

S

COWETA APARTMENTS

1

Steeplechase

2

Inverness Apartments

LOCATION

RENTAL STATUS

MILES FROM SUBJECT

YEAR BUILT/ RENOV

UNITS

OCCUPANCY

AVERAGE RENT

AVERAGE SF

AVERAGE RENT/SF

COWETA

AFFORDABLE

-

1972/2013

60

100%

$869

767

$1.13

Coweta

Market

3.43

2000

96

96%

$885

948

$0.93

Broken Arrow

Market

9.37

1985

91

95%

$850

857

$0.99

187

96%

$868

904

$0.96

TOTAL/AVERAGE (LESS SUBJECT)

21

RENT C OMPA R A BLE S

COWETA APARTMENTS 613 S. Guthrie Ave. Coweta, OK 74429

60

YEAR BUILT/RENO

100%

1972/2013

UNITS 96

OCCUPANCY

YEAR BUILT

96%

RENT ANALYSIS

2000

UNITS

RENT

SF

RENT/SF

1 BEDROOM

$702

624

$1.13

2 BEDROOM

$785

679

3 BEDROOM

$989

883

91

OCCUPANCY

YEAR BUILT

95%

RENT ANALYSIS

1985

RENT ANALYSIS

RENT

SF

RENT/SF

1 BEDROOM

$725

655

$1.11

$1.16

2 BEDROOM

$869

925

$0.94

$1.12

3 BEDROOM

$989

1,130

$0.88

Tenants pay electric.

22

5150 S. Elm Pl. Broken Arrow, OK 74011

27185 E. 121st St. S. Coweta, OK 74429

UNITS OCCUPANCY

INVERNESS APARTMENTS

STEEPLECHASE

RENT

SF

RENT/SF

1 BEDROOM

$730

655

$1.11

2 BEDROOM

$952

1,031

$0.92

Tenants pay all utilities.

OC CUPA NCY

100%

100%

99%

98%

97%

96%

95%

96%

96%

Steeplechase

Average

95%

94%

93%

92% Inverness Apartments

23

Coweta Apartments

O N E B E D R O O M A N A LY S I S

$735

$1.20 $1.11

$730

$1.13

$1.11

$1.11

$730 $1.00

$728

$725

$725

$720

$0.80

$715

$710

$0.60

$705

$700

$0.40

$702

$695

$0.20

$690

$685

$0.00 Coweta Apartments

Steeplechase

Average

$/UNIT

24

$/SF

Inverness Apartments

T W O B E D R O O M A N A LY S I S

$1,000 $1.20

$1.16

$952

$900

$911 $869

$800

$1.00

$785 $0.94

$700

$0.93

$0.92 $0.80

$600

$500

$0.60

$400 $0.40

$300

$200 $0.20 $100

$0

$0.00 Coweta Apartments

Steeplechase

Average $/UNIT

25

$/SF

Inverness Apartments

T H R E E B E D R O O M A N A LY S I S

$1,200

$1.20

$1.12 $1,000

$1.00

$989

$989 $0.88

$800

$0.80

$600

$0.60

$400

$0.40

$200

$0.20

$0

$0.00 Coweta Apartments

Steeplechase $/UNIT

26

$/SF

THE LOCATION COWETA POPULATION (2022)

9,596

WAGONER COUNTY ESTIMATED POPULATION INCREASE BY 2026

5.41%

MAJOR EMPLOYERS

• • • • • •

27

St. Francis Hospital St. John Medical Center Bank of Oklahoma Total Medical Personnel Service West Corp Ford Motor Company

TULSA, OKLAHOMA | MSA DEMOGRAPHICS

38.1 MEDIAN AGE IN THE TULSA MSA

KEY RENTER AGE GROUP RESIDENTS BETWEEN 18 AND 35 YEARS OLD

POSITIONS METROWIDE

1.0M

$

131.9K

269.4K

83.2

Metro Tulsa's population is forecast to grow 3.4% over

The Tulsa MSA's median household income is projected to reach $67,232 by 2027, up 14.2% from 2022

Approximately 30% of the Tulsa MSA's households are renter-occupied

40% of residents age 25 years

The Tulsa MSA boasts an affordable cost of living with an index score of 83.2,

the next five years, surpassing 1.0 million residents

28

233.3K

38% OF WORKERS ARE IN BLUE-COLLAR

BERKADIA

67.2K

and older have obtained a high school diploma or less

compared to 100.0 nationally

ECONOMIC AND DEMOGRAPHIC OVERVIEW

TULSA, OKLAHOMA | MSA HUD FAIR MARKET RENT

FAIR MARKET RENT

925

$

for a two-bedroom unit, up

3.2% from one year prior

The Tulsa MSA is the second largest metro in Oklahoma and is located along the Arkansas River in the northeast part of the state. The city of Tulsa is well known for its vibrant art scene and is a hub for sectors like finance, aviation, telecommunications, and technology.

TULSA MSA HUD FAIR MARKET RENT

$950 $900 $850 $800 $750

$896

$925

2017

$898

2016

$865

$650

$842

$700

$818

Fair market rent in the Tulsa MSA, increased across efficiency, one-, three-, and four-bedroom unit types in FY 2022. FMR for efficiency units in the Tulsa MSA rose the most, with a 6.4% year-over-year increase, reaching $646 per month. Meanwhile, FMR for one-bedroom units appreciated 3.9% annually to $724 per month. Over the same time period, three-bedroom FMR grew 2.7% year-over-year to $1,219 per month. FMR for four-bedroom units also increased 3.4% annually to $1,428 per month in FY 2022.

HUD Fair Market Rent

$783

According to the U.S. Department of Housing and Urban Development (HUD), monthly fair market rent in the Tulsa MSA ranged from $646 for an efficiency unit to $1,428 for a four-bedroom unit in FY 2022. The fair market rent for a two-bedroom apartment unit was $925 per month in the metro, up 3.2% from FY 2021. Since 2016, fair market rent for a twobedroom apartment unit in the Tulsa MSA has increased by 13.1%.

2021

2022

$600 2018 2019 2020 Fair Market Rent

Existing inventory for fully affordable communities in the Tulsa MSA consisted of 11,288 units across 135 apartment communities as of July 2022. There are currently 249 affordable apartment units under construction in the Tulsa MSA.

29

BERKADIA

ECONOMIC AND DEMOGRAPHIC OVERVIEW

INVESTMENT ADVISORS JEFF IRISH

Senior Managing Director 208.286.5013 jeff.irish@berkadia.com

BRANDON GRISHAM

Senior Managing Director 253.653.3313 brandon.grisham@berkadia.com

JOHNATHAN SMITH

Senior Director 206.856.1707 johnathan.smith@berkadia.com

TREVOR MADDEN

Director 406.459.9221 trevor.madden@berkadia.com

BOISE OFFICE 6225 North Meeker Place Suite 210 Boise, ID 83713 www.Berkadia.com

DISCLAIMER & CONFIDENTIALITY The material contained in this document is confidential, furnished solely for the purpose of considering investment in the property described therein and is not to be copied and/ or used for any purpose or made available to any other person without the express written consent of Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. In accepting this, the recipient agrees to keep all material contained herein confidential.

This information package has been prepared to provide summary information to prospective purchasers and to establish a preliminary level of interest in the property described herein. It does not, however, purport to present all material information regarding the subject property, and it is not a substitute for a thorough due diligence investigation. In particular, Berkadia Real Estate Advisors LLC, Berkadia Real Estate Advisors Inc. and Seller have not made any investigation of the actual property, the tenants, the operating history, financial reports, leases, square footage, age or any other aspect of the property, including but not limited to any potential environmental problems that may exist and make no warranty or representation whatsoever concerning these issues. The information contained in this information package has been obtained from sources we believe to be reliable; however, Berkadia Real Estate Advisors LLC, Berkadia Real Estate Advisors Inc. and Seller have not conducted any investigation regarding these matters and make no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. Any pro formas, projections, opinions, assumptions or estimates used are for example only and do not necessarily represent the current or future performance of the property.

Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. and Seller strongly recommend that prospective purchasers conduct an in-depth investigation of every physical and financial aspect of the property to determine if the property meets their needs and expectations. We also recommend that prospective purchasers consult with their tax, financial and legal advisors on any matter that may affect their decision to purchase the property and the subsequent consequences of ownership.

All parties are advised that in any property the presence of certain kinds of molds, funguses, or other organisms may adversely affect the property and the health of some individuals. Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. recommend, if prospective buyers have questions or concerns regarding this issue, that prospective buyers conduct further inspections by a qualified professional.

The Seller retains the right to withdraw, modify or cancel this offer to sell at any time and without any notice or obligation. Any sale is subject to the sole and unrestricted approval of Seller, and Seller shall be under no obligation to any party until such time as Seller and any other necessary parties have executed a contract of sale containing terms and conditions acceptable to Seller and such obligations of Seller shall only be those in such contract of sale.

For more information on these and other Berkadia® exclusive listings, please visit our website at www.Berkadia.com Berkadia®, a joint venture of Berkshire Hathaway and Jefferies Financial Group, is an industry leading commercial real estate company providing comprehensive capital solutions and investment sales advisory and research services for multifamily and commercial properties. Berkadia® is amongst the largest, highest rated and most respected primary, master and special servicers in the industry. © 2022 Berkadia Proprietary Holding LLC Berkadia® is a trademark of Berkadia Proprietary Holding LLC Investment sales and real estate brokerage businesses are conducted exclusively by Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. Commercial mortgage loan origination and servicing businesses are conducted exclusively by Berkadia Commercial Mortgage LLC and Berkadia Commercial Mortgage Inc. Tax credit syndication business is conducted exclusively by the Tax Credit Syndication group. In California, Berkadia Real Estate Advisors Inc. conducts business under CA Real Estate Broker License #01931050; Adrienne Barr, CA DRE Lic. # 01308753. Berkadia Commercial Mortgage LLC conducts business under CA Finance Lender & Broker Lic. #988-0701; and Berkadia Commercial Mortgage Inc. under CA Real Estate Broker Lic. #01874116. This proposal is not intended to solicit commercial mortgage loan brokerage business in Nevada. For state licensing details, visit: http://www.berkadia.com/legal/licensing.

BERKADIA.COM / 800.446.2226 a Berkshire Hathaway and Jefferies Financial Group company © 2022 Berkadia Proprietary Holding LLC. Berkadia® is a trademark of Berkadia Proprietary Holding LLC. Investment sales and real estate brokerage businesses are conducted exclusively by Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. Commercial mortgage loan origination and servicing businesses are conducted exclusively by Berkadia Commercial Mortgage LLC and Berkadia Commercial Mortgage Inc. Tax credit syndication business is conducted exclusively by the Tax Credit Syndication group. This advertisement is not intended to solicit commercial mortgage loan brokerage business in Nevada. In California, Berkadia Real Estate Advisors Inc. conducts business under CA Real Estate Broker License #01931050; Adrienne Barr, CA DRE Lic. # 01308753. Berkadia Commercial Mortgage LLC conducts business under CA Finance Lender & Broker Lic. #988-0701; and Berkadia Commercial Mortgage Inc. under CA Real Estate Broker Lic. #01874116. For state licensing details for the above entities, visit: www.berkadia.com/legal/licensing.