Elizabeth Portfolio 3

3 PROPERTIES | 89 UNITS ELIZABETH, NEW JERSEY

a Berkshire Hathaway and Jefferies Financial Group company

INVESTMENT ADVISORS NAT GAMBUZZA

Senior Managing Director NJ DRE #0123988 973.809.1755 nat.gambuzza@berkadia.com

TREVOR FIEBEL

Senior Director NJ DRE #1431448 908.285.6921 trevor.fiebel@berkadia.com

NICK BALANCIA

Associate Director NJ DRE #2322128 908.642.1905 nick.balancia@berkadia.com

BRIAN ANTOGNINI

Senior Transaction Manager NJ DRE #1111667 201.739.2331 brian.antognini@berkadia.com

MORRISTOWN, NEW JERSEY 17 Headquarters Plaza West Tower 8th Floor Morristown, NJ 07960

TABLE OF

CONTENTS

4 10 18 24 26 28 40

Team Capabilities The Opportunity The Location Sales Comparables Rent Comparables The Financials Create & Negotiate

T E A M C A PA B I L I T I E S | N E W J E R S E Y I N V E S T M E N T S A L E S Berkadia New Jersey Investment Sales, led by Nat Gambuzza, provides a depth

expertise and excels in the most complex transactions, including portfolio sales,

of advisory and transaction services for income generating properties that is

distressed property sales, note sales and time-sensitive 1031 tax exchange

unparalleled in the industry. Their clients include private investors, partner-

transactions. Prior to joining Berkadia in 2022, the team worked at another

ships, lenders and institutions of various net worth. The team has specialized

national real estate investment services firm.

COUNTY

UNITS

VALUE

Atlantic

549

$52,075,000

Bergen

1,643

$301,610,765

Burlington

1

$6,060,000

Camden

1,250

$92,415,300

Essex

5,391

$651,145,086

Gloucester

348

$41,215,000

Hudson

1,295

$281,988,000

Hunterdon

159

$47,880,000

Mercer

200

$33,127,500

Middlesex

1,039

$211,457,000

Monmouth

1,213

$203,647,722

Morris

499

$142,003,000

Ocean

105

$10,600,000

Out of State

930

$125,382,000

Passaic

861

$127,794,000

Somerset

780

$134,471,500

Sussex

44

$6,650,000

Union

3,549

$353,292,700

Warren

46

$2,490,000

BERKADIA / ELIZABETH PORTFOLIO

TEAM OVERVIEW

7

75 Years

19,900+

$2.8B+

TEAM MEMBERS

TOTAL UNITS SOLD

COMBINED EXPERIENCE

TOTAL CONSIDERATION

NEW JERSEY INVESTMENT PROPERTIES TEAM

4

NAT GAMBUZZA Senior Managing Director

TREVOR FIEBEL Senior Director

SPENCER BERIONT Senior Director

NICK BALANCIA Associate Director

BRIAN ANTOGNINI Senior Transaction Manager

MIKE O’REILLY Senior Financial Analyst

TIM BLASHFORD Director

T E A M C A PA B I L I T I E S | T E A M C LO S I N G S

UNION COUNTY 3,549 Units | $353,292,700

5

BERKADIA / ELIZABETH PORTFOLIO

T E A M C A PA B I L I T I E S | R E C E N T T R A C K R E CO R D ( U N I O N CO U N T Y )

611 W BLANCKE

574 JEFFERSON

MARLAW APARTMENTS

Linden, NJ Units: 8 Sales Price: UNDER CONTRACT

Elizabeth, NJ Units: 28 Sales Price: UNDER CONTRACT

Elizabeth, NJ Units: 36 Sales Price: $4,800,000 Price Per Unit: $133,333

RAHWAY & LINDEN PORTFOLIO

RAHWAY PORTFOLIO

BELLA VISTA

THE EL MORA

Rahway, NJ Units: 51 Sales Price: $7,500,000 Price Per Unit: $147,058

Elizabeth, NJ Units: 82 Sales Price: $9,750,000 Price Per Unit: $118,902

Elzabeth, NJ Units: 21 Sales Price: $3,307,500 Price Per Unit: $157,500

Rahway & Linden, NJ Units: 52 Sales Price: $11,150,000 Price Per Unit: $214,423

BERKADIA / ELIZABETH PORTFOLIO

6

ROSELLE & LINDEN PORTFOLIO Roselle & Linden, NJ Units: 35 Sales Price: $6,200,000 Price Per Unit: $177,142

T E A M C A PA B I L I T I E S | 2024 C A S E S T U D I E S The case studies below are examples of how our team has excelled for our clients in maximizing value for their assets.

611 W BLANCKE

574 JEFFERSON

LINDEN, NJ

ELIZABETH, NJ Units

28

Units

Units

8

Property Marketed by Other Firm for 12-Months

Seller Purchased for 1.34MM in August 2023

Seller Tasked Berkadia to Sell Property in Late 2023

Seller Tasked Berkadia to Sell Property in Early 2024

Berkadia has Property Under Contract

Berkadia has Property Under Contract for a 15% Increase on Price within 6-Months of Seller Ownership

51 E MAIN

11 DEHART

BERGENFIELD, NJ

MORRISTOWN, NJ

26

New Construction Property Previously Listed with Two Other Firms Seller Tasked Berkadia to Sell Property in February 2024 Berkadia Currently Negotiating Two Separate LOIs with Seller

7

Units

59

Property Previously Marketed by Other Firms Berkadia Sourced an All-Cash Buyer Berkadia Sold at Start of 2024 for Highest Price per Unit in Morristown

BERKADIA / ELIZABETH PORTFOLIO

T E A M C A PA B I L I T I E S | M A R K E T FA CTO R S The following market factors influence investor decisions while evaluating opportunities. We take this into consideration when assembling our valuations.

Elizabeth Just Underwent 1st Tax Reassessment in 50 Years; Portfolio’s Taxes are Projected to be Increasing 22.53% in 2024

Inflation Driving Up Operating Expenses, Including Utilities, Labor, and Materials

Investors are Being Cautious Short Term While Maintaining Long Term Optimism Specifically in Multifamily

Lenders Restricted by Debt Service Coverage Ratios

Rents in Market up 6.4% YoY and 29.2% Since 2018

Historically Low Rates Have Increased Substantially

Higher Interest Rates Prevent Homeownership Which Bodes Well for Rentals

Current Market Occupancy at 96.2% 4Q23 Projected to Reach 97.2% by End of 2024

Elizabeth has Prohibitive Rent Control Ordinance

BERKADIA / ELIZABETH PORTFOLIO

8

T E A M C A PA B I L I T I E S | S U P P LY A N D OCC U PA N C Y Fundamentals remain strong with absorption, rents, and occupancy.

Supply vs. Demand 3,600 2,400 1,200

Absorption is Outpacing New Deliveries/Vacancy

0 (1,200) 2018

2019

2020

2021

New Deliveries

*Projection

2022

2023

2024*

Net Absorption

Rent vs. Occupancy **

$2,400

100%

*Projection

$2,365

$1,400

$2,312

85% $2,173

$1,650 $2,019

90%

$1,845

$1,900

$1,822

95%

$1,789

$2,150

2018

2019

2020

2021

2022

2023

2024*

Effective Rent

**Rent Includes all Asset Classes and Bedroom Types

Market Occupancy Close to 99% Coupled with Significant Rental Growth

80%

Occupancy Rate 9

BERKADIA / ELIZABETH PORTFOLIO

T H E O P P O RT U N I T Y | I N V E S T M E N T S U M M A RY 662 SALEM AVENUE

151-157 STILES STREET

145-149 STILES STREET

The Elizabeth Portfolio presents an investor with a rare opportunity to purchase a total of 89 apartments in Elizabeth, NJ. The Elizabeth Portfolio sits adjacent to public transportation, is situated near stable employment centers, and is within a few blocks of numerous dining, shopping, and nightlife options. The investment benefits from an overwhelming demand for renters to live in Elizabeth, upside in current rents, and an unbeatable location to large office hubs, nightlife options, and mass transportation.

I N V E S T M E N T H I G H L I G H TS THE INVESTMENT: Spanning three properties, this garden-style apartment portfolio comprises of 89 units and offers a substantial value-add opportunity.

VALUE-ADD: Portfolio presents a significant value-add opportunity for an investor with the current rent roll 57% below market.

MARKET PERFORMANCE: The City of Elizabeth boasts a 3.8% vacancy rate, with rents up 6.4% YoY and up 29.2 % since 2018.

UNIQUE UNIT-MIX: This 3-property portfolio has an ideal overall unit mix of 4 studio apartments, 77 one-bedroom apartments, and 8 two-bedroom apartments.

STRATEGIC LOCATION: Ideal location with access by car and train to the region’s major employment centers in New York City, Newark, and Jersey City.

LONG TERM OWNERSHIP: This garden-style apartment portfolio has been owned, cared for, and managed by the same ownership group for a collective 50 years.

BERKADIA / ELIZABETH PORTFOLIO

10

NE WA RK

662 SALEM AVENUE

AV E

T H E O P P O RT U N I T Y | A E R I A L O F P RO P E RT I E S

145-149 STILES STREET

O M R

R IS

N

BR

OA D

E

ST

AV

151-157 STILES STREET

D

IEL

TF ES

W

11

BERKADIA / ELIZABETH PORTFOLIO

T H E O P P O RT U N I T Y | 145-149 S T I L E S S T R E E T

BERKADIA / ELIZABETH PORTFOLIO

12

P RO P E RT Y D E TA I L S 14 5-149 S T I L E S S T R E E T STRUCTURAL FOUNDATION

Cinderblock

FRAME

Wood Frame

EXTERIOR

Masonry

WINDOWS

Double Hung- Vinyl

ROOF

Pitched Asphalt

145-149 STILES STREET

MECHANICAL

ADDRESS

145-149 Stiles St

UTILITIES

Separately Metered

COUNTY

Union County

HOT WATER

Central Hot Water Heater

MUNICIPALITY

Elizabeth

COOLING

Through Wall A/C Sleeves

LAND AREA

0.50 Acres

HEATING

Central Boiler with Baseboard Distribution

SECURITY SYSTEM

Controlled Entry w/ Full Camera Surveillance System

YEAR BUILT

1962

# OF UNITS

34 Apartments

FIRE SAFETY

Hard-Wired in Common Areas w/ Central Monitoring System, Fully Sprinklered

PARKING SPACES

37 Surface Parking Spaces

LAUNDRY

Leased Laundry Facility

* Select Property Details Assumed Based on Asset Vintage

13

BERKADIA / ELIZABETH PORTFOLIO

T H E O P P O RT U N I T Y | 151-157 S T I L E S S T R E E T

BERKADIA / ELIZABETH PORTFOLIO

14

P RO P E RT Y D E TA I L S 15 1-157 S T I L E S S T R E E T STRUCTURAL

151-157 STILES STREET ADDRESS

151-157 Stiles Street

COUNTY

Union County

MUNICIPALITY

Elizabeth

LAND AREA

0.68 Acres

FOUNDATION

Cinderblock

FRAME

Wood Frame

EXTERIOR

Masonry/Wood Accents

WINDOWS

Double Hung- Vinyl

ROOF

Flat

MECHANICAL UTILITIES

Separately Metered

HOT WATER

Central Hot Water Heater

COOLING

Through Wall A/C Sleeves

HEATING

Central Boiler with Baseboard Distribution

SECURITY SYSTEM

Controlled Entry w/ Full Camera Surveillance System

YEAR BUILT

1972

# OF UNITS

32 Apartments

FIRE SAFETY

Hard-Wired in Common Areas with Central Monitoring System

PARKING SPACES

35 Surface Parking Spaces

LAUNDRY

Leased Laundry Facility

* Select Property Details Assumed Based on Asset Vintage

15

BERKADIA / ELIZABETH PORTFOLIO

T H E O P P O RT U N I T Y | 662 S A L E M AV E N U E

BERKADIA / ELIZABETH PORTFOLIO

16

P RO P E RT Y D E TA I L S 662 S A L E M AV E N U E STRUCTURAL FOUNDATION

Cinderblock

FRAME

Wood Frame

EXTERIOR

Masonry

WINDOWS

Double Hung- Vinyl

ROOF

Pitched Asphalt

642-650 SALEM AVENUE

MECHANICAL

ADDRESS

662 Salem Avenue

UTILITIES

Separately Metered

COUNTY

Union County

HOT WATER

Central Hot Water Heater

MUNICIPALITY

Elizabeth

COOLING

Through Wall A/C Sleeves

LAND AREA

0.38 Acres

HEATING

Central Boiler with Baseboard Distribution

SECURITY SYSTEM

Controlled Entry w/ Full Camera Surveillance System

YEAR BUILT

1962

# OF UNITS

23 Apartments

FIRE SAFETY

Hard-Wired in Common Areas with Central Monitoring System

PARKING SPACES

21 Surface Parking Spaces

LAUNDRY

Building Owned Equipment

* Select Property Details Assumed Based on Asset Vintage

17

BERKADIA / ELIZABETH PORTFOLIO

T H E LOC AT I O N | E L I Z A B E T H , N E W J E R S E Y

Elizabeth, New Jersey, is a culturally diverse city located in Union County. It is a bustling urban center that offers its residents a mix of historical charm, economic opportunities, and convenient access to transportation hubs. Elizabeth offers its residents a vibrant community atmosphere with a range of cultural, recreational, and educational opportunities. The city boasts several parks, including Warinanco Park and Mattano Park, providing green spaces for outdoor activities and relaxation. Elizabeth is home to various cultural institutions, such as the Boxwood Hall State Historic Site and the Museum of the Historical Society of Elizabeth, which offer insights into the city’s rich history. The city is home to several major employers, including: Port Newark-Elizabeth Marine Terminal, Trinitas Regional Medical Center, as well as Elizabeth Public Schools. The city is served by NJ Transit buses, which connect residents to destinations throughout New Jersey and New York City. Additionally, Elizabeth is located near Newark Liberty International Airport, offering air travel options for both domestic and international journeys. Elizabeth is served by NJ Transit’s Northeast Corridor rail line, providing commuter rail service to destinations such as New York City, Newark, and Trenton. The city also has access to the PATH train system, facilitating travel to Manhattan and other parts of New York City. Elizabeth, NJ, offers its residents a diverse and dynamic living environment with a range of amenities, employment opportunities, and transportation options, contributing to a high quality of life for its residents.

BERKADIA / ELIZABETH PORTFOLIO

18

T H E LOC AT I O N | M A P O F P RO P E RT I E S

145-149 STILES STREET

662 SALEM AVENUE

151-157 STILES STREET

19

BERKADIA / ELIZABETH PORTFOLIO

T H E LOC AT I O N | T R A N S P O RTAT I O N Through the NJ Transit Authority, residents have access to the region’s expansive public transportation options. Residents’ choices vary from NJ Transit bus system, the NJ Transit rail system, and multiple regional highways.

NJTRANSIT BUS SYSTEM: The massive NJ Transit Bus system extends residents mass transportation reach to the entire Metro New York area. NJ Transit provides bus service locally as well as to the New York Port Authority Bus Terminal. Elizabeth has bus stops scattered throughout the town with multiple different service lines.

REGIONAL HIGHWAYS: Elizabeth provides immediate access to multiple local and regional highways such as Routes 1, 9, 22, 27, 28, 78, I-95 & The Garden State Parkway.

NJTRANSIT: Northeast Corridor Line: NJ Transit commuter rail service connecting Elizabeth to destinations such as Newark, Jersey City, and New York City. Stops include Elizabeth Station and North Elizabeth Station.

REGIONAL AIRPORTS: Newark Liberty International Airport: Located nearby in Newark, NJ, Newark Liberty International Airport offers domestic and international flights, providing residents of Elizabeth with air travel options for both business and leisure purposes.

BERKADIA / ELIZABETH PORTFOLIO

20

T H E LOC AT I O N | T R A N S P O RTAT I O N

21

BERKADIA / ELIZABETH PORTFOLIO

E LIZABETH LIZABETH,, NJ

DEMOGRAPHICS

2023 Estimated Population Projected 2028 Population Population Growth (2023 – 2028) 2023 Estimated Median HHI Projected 2028 Median HHI Median HHI Growth (2023 - 2028) Households Earning $100,000+ Annually Key Renter Age Group (18 to 35) Bachelor's Degree or Higher (Age 25+) Renter-Occupied Housing Units White-Collar Workers Workplace Establishments FTE Employees*

One-Mile Radius

Three-Mile Radius

Five-Mile Radius

Union County

48,464

259,023

649,790

563,555

48,788

260,843

654,634

570,305

0.7%

0.7%

0.8%

1.2%

$57,120

$62,873

$64,076

$91,964

$64,207

$70,200

$72,155

$103,136

12.4%

11.7%

12.6%

12.1%

25%

29%

31%

46%

22%

22%

22%

22%

21%

20%

25%

38%

65%

55%

53%

38%

42%

48%

52%

62%

982

5,335

14,991

15,353

17,436

103,008

312,064

247,021

*Full-time equivalent workplace employees BERKADIA / ELIZABETH PORTFOLIO

22

KEY TAKEAWAYS

1-MILE RADIUS (TMA) (TMA ) RENT VS. OWN

LEASING ACTIVITY

Average mortgage payment: $4,188*

1,291 net move-ins in 2023

Effective rent: $2,312

3,218 net move-ins projected in 2024

Difference: $1,876

EFFECTIVE RENT

APPRECIATING HOME VALUES According to Realtor.com, the median home price in Elizabeth grew 12.0% to approximately $560,000 in February 2024

56 net move-outs during 2023

243 net move-ins expected during 2024

NEW SUPPLY

AFFLUENT HOUSEHOLDS

Would be highest annual absorption on record

The median HHI within three miles of the subject property ($62,873) is projected to reach $70,200 by 2028, equating to an 11.7% increase from 2023

1,811 new units came online in 2023

2,428 new units projected to come online in 2024

*($560,000 home price, 30-year fixed, 20% down, 6.61% interest rate, 2.33% NJ property tax, $1,635 homeowner’s insurance)

23

BERKADIA / ELIZABETH PORTFOLIO

S A L E S CO M PA R A B L E S

Address

1270 Clinton & 204 Westfield Elizabeth, NJ

32-44 Stiles Street Elizabeth, NJ

129, 233, 435 W Grand & 1247 Clinton Elizabeth, NJ

115 Orchard Street Elizabeth, NJ

432-440 Maple Avenue Elizabeth, NJ

Sale Date

7/19/2023

3/21/2024

10/25/2022

6/3/2022

2/9/2022

Year Built

1930/1966

1965

~1960s

1965

1972

44

36

110

23

24

Sale Price

$6,037,500

$4,800,000

$13,340,000

$3,550,000

$3,300,000

Price per Unit

$137,216

$133,333

$121,273

$154,348

$137,500

Two Building Portfolio

4.9% Cap Rate

Four Building Portfolio

Sold by Long Term Ownership

Direct Off-Market Purchase

Units

Notes

BERKADIA / ELIZABETH PORTFOLIO

24

S A L E S CO M PA R A B L E S M A P 1270 CLINTON PLACE

32-44 STILES STREET

1247 CLINTON PLACE 662 SALEM AVENUE

145-157 STILES STREET

115 ORCHARD STREET 204 WESTFIELD AVENUE

435 W GRAND STREET 129 W GRAND STREET 233 W GRAND STREET 432 MAPLE AVENUE

25

BERKADIA / ELIZABETH PORTFOLIO

R E N T C O M PA R A B L E S Name

Subject Portfolio

Stiles Manor

Aberdeen Arms Apartments

Turtle Village

Cambridge Manor

Address

145 Stiles & 662 Salem Avenue Elizabeth, NJ

171 Stiles Street Elizabeth, NJ

730 N Broad Street Elizabeth, NJ

461 Morris Avenue Elizabeth, NJ

539 N Broad Street Elizabeth, NJ

# of Units

89

96

52

40

69

1962/1963

1966

1965

1965

1963

2

2

2

2

2

Built/Renovated Stories

TOTAL/AVERAGES

STUDIO Range

Low

High

Low

High

Low

High

Low

High

Low

High

Low

Average

High

Rent

$845

$995

$1,525

$1,750

$0

$0

$0

$0

$1,470

$1,470

$1,470

$1,554

$1,750

$1,470

$1,554

$1,638

Average Rent

$920

$1,638

$0

$0

$1,470

ONE BEDROOM Range

Low

High

Low

High

Low

High

Low

High

Low

High

Low

Average

High

Rent

$825

$1,370

$1,745

$1,820

$1,610

$2,100

$1,721

$1,846

$1,800

$1,900

$1,610

$1,818

$2,100

$1,783

$1,818

$1,855

Average Rent

$1,098

$1,783

$1,855

$1,784

$1,850

TWO BEDROOM Range

Low

High

Low

High

Low

High

Low

High

Low

High

Low

Average

High

Rent

$1,080

$1,600

$2,070

$2,215

$2,094

$2,100

$2,155

$2,155

$2,000

$2,000

$2,000

$2,099

$2,215

$2,000

$2,099

$2,155

Average Rent

$1,340

$2,143

$2,097

$2,155

Note: Subject property rents are ranges observable from RR; for all other properties, rents are ranges available at time of survey.

BERKADIA / ELIZABETH PORTFOLIO

26

$2,000

R E N T CO M PA R A B L E S M A P

ABERDEEN ARMS APARTMENTS 662 SALEM AVENUE 145-157 STILES STREET

CAMBRIDGE MANOR

STILES MANOR

TURTLE VILLAGE 27

BERKADIA / ELIZABETH PORTFOLIO

T H E F I N A N C I A L S | 145-157 S T I L E S S T R E E T

BERKADIA / ELIZABETH PORTFOLIO

28

145-157 S T I L E S S T R E E T | R E N T RO L L A N A LY S I S Unit Type

Total

Average Rent

Current Monthly Rent

Market Rent

Market Monthly Rent

Percent Upside

Studio

3

$920

$2,760

$1,350

$4,050

46.74%

1 Bedroom

55

$1,155

$63,515

$1,800

$99,000

55.87%

2 Bedroom

8

$1,388

$11,107

$2,100

$16,800

51.26%

Total

66

$119,850

54.88%

$77,382

Monthly Rent Upside $2,500 $2,100 $2,000

$1,800

$1,500

$1,388

$1,350 $1,155

$1,000

$920

$500

$0

Studio

1 Bedroom

2 Bedroom

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.

29

BERKADIA / ELIZABETH PORTFOLIO

145 -1 5 7 S T I L E S S T R E E T | I N CO M E A N D E X P E N S E S Number of Units INCOME

66

Current

Berkadia Pro Forma

Gross Potential Rent

$928,584

$1,438,200

Estimated Market Rent

Berkadia Notes

Less Vacancy

($27,858)

($43,146)

-3% of GPR Estimate

Effective Rental Income

$900,726

$1,395,054

Laundry Income

$9,600

$9,600

Total Other Income

$9,600

$9,600

Gross Potential Income

$938,184

$1,447,800

Effective Gross Income

$910,326

$1,404,654

Based on Contract at $800/Month

EXPENSES Property Taxes*

$160,352

$2,430

$165,162

$2,502

2024 RE Tax Estimate plus 3% Based on Seller's Financials

Utilities

$103,619

$1,570

$103,619

$1,570

Total Fixed Expenses

$263,970

$4,000

$268,781

$4,072

Insurance

$39,600

$600

$39,600

$600

$600 Per Unit Estimate

Contract Services

$13,200

$200

$13,200

$200

$200 Per Unit Estimate

Superintendent

$49,500

$750

$49,500

$750

$750 Per Unit Estimate

Repairs and Maintenance

$34,650

$525

$34,650

$525

$525 Per Unit Estimate

Management Fee

$27,310

$414

$42,140

$638

3% of EGI Estimate

Total Variable Expenses

$164,260

$2,489

$179,090

$2,713

Total Expenses

$428,230

$6,488

$447,871

$6,786

Net Operating Income

$482,096

Percent Upside

$956,783

98.46%

*2024 Property Taxes are Estimates Based on New 2024 Assessments and Estimated Tax Rate

Pro Forma Income/Expense Comparison

Income/Expense Comparison

32%

53%

47% 68%

Total Expenses

BERKADIA / ELIZABETH PORTFOLIO

Total Expenses

Effective Gross Income

30

Effective Gross Income

145-157 S T I L E S S T R E E T | VA LU AT I O N Valuation Net Operating Income

Actual $482,096

Pro Forma $956,783

Current Valuation Price

$9,642,000

$9,183,000

Price Per Unit Cap Rate

$146,091 5.00%

$139,136 5.25%

$8,765,000 $132,803 5.50%

$9,800,000

5.60%

$9,600,000

5.50%

$9,400,000

5.40% 5.30%

$9,200,000

5.20%

$9,000,000

5.10%

$8,800,000

5.00%

$8,600,000

4.90%

$8,400,000

4.80%

$8,200,000

4.70% $9,642,000

$9,183,000

Cap Rate

Value

Current Valuation

$8,765,000

Current Value Price

Cap Rate

31

BERKADIA / ELIZABETH PORTFOLIO

T H E F I N A N C I A L S | 662 S A L E M AV E N U E

BERKADIA / ELIZABETH PORTFOLIO

32

662 S A L E M AV E N U E | R E N T RO L L A N A LY S I S Unit Type

Total

Average Rent

Current Monthly Rent

Market Rent

Market Monthly Rent

Percent Upside

Studio

1

$845

$845

$1,350

$1,350

59.76%

1 Bedroom

22

$1,099

$24,170

$1,800

$39,600

63.84%

Total

23

$40,950

63.70%

$25,015

Monthly Rent Upside $2,000 $1,800

$1,800 $1,600 $1,350

$1,400 $1,200 $1,000

$1,099 $845

$800 $600 $400 $200 $0

Studio

1 Bedroom

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.

33

BERKADIA / ELIZABETH PORTFOLIO

662 S A L E M AV E N U E | I N CO M E A N D E X P E N S E S Number of Units INCOME

23

Current

Berkadia Pro Forma

Berkadia Notes

Gross Potential Rent

$300,180

$491,400

Estimated Market Rent

Less Vacancy

($9,005)

($14,742)

-3% of GPR Estimate

Effective Rental Income

$291,175

$476,658

Laundry Income

$5,382

$5,382

Total Other Income

$5,382

$5,382

Gross Potential Income

$305,562

$496,782

Effective Gross Income

$296,557

$482,040

Based on 23 Units at $4.50/Week

EXPENSES Property Taxes*

$52,183

$2,269

$53,748

$2,337

2024 RE Tax Estimate plus 3%

Utilities

$29,944

$1,302

$29,944

$1,302

Based on Seller's Financials

Total Fixed Expenses

$82,126

$3,571

$83,692

$3,639

Insurance

$13,800

$600

$13,800

$600

$600 Per Unit Estimate

Contract Services

$4,600

$200

$4,600

$200

$200 Per Unit Estimate

Superintendent

$17,250

$750

$17,250

$750

$750 Per Unit Estimate

Repairs and Maintenance

$12,075

$525

$12,075

$525

$525 Per Unit Estimate

Management Fee

$8,897

$387

$14,461

$629

3% of EGI Estimate

Total Variable Expenses

$56,622

$2,462

$62,186

$2,704

Total Expenses

$138,748

$6,033

$145,878

$6,343

Net Operating Income

$157,808

Percent Upside

$336,162

113.02%

*2024 Property Taxes are Estimates Based on New 2024 Assessments and Estimated Tax Rate

Income/Expense Comparison

Pro Forma Income/Expense Comparison

30% 53%

47%

70%

Total Expenses

BERKADIA / ELIZABETH PORTFOLIO

Total Expenses

Effective Gross Income

34

Effective Gross Income

662 S A L E M AV E N U E | VA LU AT I O N Valuation Net Operating Income Current Valuation Price

Price Per Unit Cap Rate

Actual $157,808

Pro Forma $336,162

$3,156,000

$3,006,000

$137,217 5.00%

$130,696 5.25%

$2,869,000 $124,739 5.50%

$3,200,000

5.60%

$3,150,000

5.50%

$3,100,000

5.40%

Value

$3,050,000

5.30%

$3,000,000

5.20%

$2,950,000

5.10%

$2,900,000

5.00%

$2,850,000 $2,800,000

4.90%

$2,750,000

4.80%

$2,700,000

4.70% $3,156,000

$3,006,000

Cap Rate

Current Valuation

$2,869,000

Current Value Price

Cap Rate

35

BERKADIA / ELIZABETH PORTFOLIO

CO M B I N E D F I N A N C I A L S

BERKADIA / ELIZABETH PORTFOLIO

36

CO M B I N E D F I N A N C I A L S | R E N T RO L L A N A LY S I S Unit Type

Total

Average Rent

Current Monthly Rent

Market Rent

Market Monthly Rent

Percent Upside

Studio

4

$901

$3,605

$1,350

$5,400

49.79%

1 Bedroom

77

$1,139

$87,685

$1,800

$138,600

58.07%

2 Bedroom

8

$1,388

$11,107

$2,100

$16,800

51.26%

Total

89

$160,800

57.04%

$102,397

Monthly Rent Upside $2,500 $2,100 $2,000

$1,800

$1,500

$1,388

$1,350 $1,139

$1,000

$901

$500

$0

Studio

1 Bedroom

2 Bedroom

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.

37

BERKADIA / ELIZABETH PORTFOLIO

CO M B I N E D F I N A N C I A L S | I N CO M E A N D E X P E N S E S Number of Units INCOME

89

Current

Berkadia Pro Forma

Berkadia Notes

Gross Potential Rent

$1,228,764

$1,929,600

Estimated Market Rent

Less Vacancy

($36,863)

($57,888)

-3% of GPR Estimate

Effective Rental Income

$1,191,901

$1,871,712

Laundry Income

$14,982

$14,982

Total Other Income

$14,982

$14,982

Gross Potential Income

$1,243,746

$1,944,582

Effective Gross Income

$1,206,883

$1,886,694

Based on Seller’s Financials

EXPENSES Property Taxes*

$212,535

$2,388

$218,911

$2,460

2024 RE Tax Estimate plus 3%

Utilities

$133,562

$1,501

$133,562

$1,501

Based on Seller's Financials

Total Fixed Expenses

$346,097

$3,889

$352,473

$3,960

Insurance

$53,400

$600

$53,400

$600

$600 Per Unit Estimate

Contract Services

$17,800

$200

$17,800

$200

$200 Per Unit Estimate

Superintendent

$66,750

$750

$66,750

$750

$750 Per Unit Estimate

Repairs and Maintenance

$46,725

$525

$46,725

$525

$525 Per Unit Estimate

Management Fee

$36,206

$407

$56,601

$636

3% of EGI Estimate

Total Variable Expenses

$220,881

$2,482

$241,276

$2,711

Total Expenses

$566,978

$6,371

$593,749

$6,671

Net Operating Income

$639,905

Percent Upside

$1,292,945

98.46%

*2024 Property Taxes are Estimates Based on New 2024 Assessments and Estimated Tax Rate

Income/Expense Comparison

Pro Forma Income/Expense Comparison

31% 53%

47%

69%

Total Expenses

BERKADIA / ELIZABETH PORTFOLIO

Total Expenses

Effective Gross Income

38

Effective Gross Income

CO M B I N E D F I N A N C I A L S | VA LU AT I O N Valuation

Actual $639,905

Pro Forma $1,292,945

$12,798,000 $143,798 5.00%

$12,189,000 $136,955 5.25%

Net Operating Income

Current Valuation Price Price Per Unit Cap Rate

2023 Tax Rate

31.43%

2024 Estimated Tax Rate

2.10%

$11,635,000 $130,730 5.50%

2024 City of Elizabeth Property Tax Reassessment Address

2023 Assessment

2023 Tax

2024 Assessment

2024 Tax*

Estimated Tax Increase (%)

145 Stiles

$200,000

$62,860

$3,566,800

$74,903

19%

151 Stiles

$220,000

$69,146

$4,047,400

$84,995

23%

662 Salem

$131,000

$41,173

$2,484,900

$52,183

27%

138 Lincoln (Vacant Land)

$900

$283

$21,300

$447

58%

Total

$173,462

$212,528 *Projection Based on Confirmed 2024 Tax Assessment and Estimated 2024 Tax Rate (2.10%)

39

BERKADIA / ELIZABETH PORTFOLIO

C R E AT E D & N E GOT I AT E | T H E B E R K A D I A P RO C E S S

Secure and Transparent Process

Controlled Document Center with Tiered Access to Due Dilligence

Clear Guidance on Core Fixed Expenses

Tracking Buyer Activity within the Document Center

Tracking Clients who have Signed Confidentiality Agreements

Manage Distribution of Due Diligence to be Done before Contract Signing

BERKADIA / ELIZABETH PORTFOLIO

40

C R E AT E D & N E GOT I AT E | T H E B E R K A D I A P RO C E S S

Weekly Marketing Reports with Ownership Group throughout Selling Process

To Ensure a Robust Response we Will go to Market Unpriced to Drive Attention

Maximum Reach by Utilizing New Jersey Berkadia’s Database and the National Berkadia Platform

Marketing Process will Finish with a Call for Offers to Spur Action and Competition

41

Transparent Process Reduces Seller Risk in Volatile Market

BERKADIA / ELIZABETH PORTFOLIO

C R E AT E D & N E GOT I AT E | T I M E L I N E TO S U C C E S S 14 DAYS

30-40 DAYS

10-14 DAYS

5-14 DAYS

28-35 DAYS

15-30 DAYS

DISCOVERY& PRELIMINARY MARKETING

MARKETING PROCESS

INITIAL OFFERS BEST & FINAL

CONTRACT

BUYER’S DUE DILIGENCE

CLOSING PROCESS

Distribute executive summary and teaser to national & international investors

Collect initial offers

Modify seller’s prepared purchase & sale agreement with buyers best & final comments

Comprehensive property review including:

Open escrow upon delivery of contract & deposit

Zoning & city compliance

Kickoff meeting Thorough property due diligence Detailed underwriting & evaluation

Distribute comprehensive marketing package

Professional photography and video walkthrough

Buyer interviews

Create competitive environment

Set up weekly marketing updates with client

Conduct property tours

Reduce buyer’s due diligence & potential for retrade

Creates competitive environment/limits buyer contingencies

2

3

4

BERKADIA / ELIZABETH PORTFOLIO

5

6

Maximize value

Environmental Structural

Seller controls terms of transaction

Initial Offers Select a Buyer 7 8 8 9 10 10 11 12 11 12

42

Close of escrow

Title & survey

Force significant non-refundable deposit

Counter best & final offers

Marketing materials created

1

Dissemination of due diligence materials Best & final bid

Ongoing discussion with buyers

WEEKS

Evaluate offers

Coordinate transfer of funds & prorations

Minimize seller’s risk

Successful transition to new ownership

Buyer is Non-Refundable Close of Escrow 13

14

15

16

17

18

19

20

Dedicated Property Website

Email Campaign

T H E B E R K A D I A P RO C E S S Dynamic, user-friendly websites.

BEST IN CLASS SUPPORT

Speed-to-market with round-the-clock support for immediate changes.

MARKETING STRATEGY

Online document center with integrated activity tracking.

Customized to reach every potential buyer, wherever they may be.

Mobile-friendly emails to reach buyers on the go.

Reach thousands of qualified buyers with targeted lists that drive traffic to the property website.

Online Lead Registration

Print Campaign

Instant access to secure documents.

Visually compelling, data-driven marketing materials customized for your asset.

Interested buyer tracker and reporting.

Local, regional and national assignment coverage.

Enables advisors to prioritize and follow up on inquiries immediately.

Seller Access

Reach more potential buyers through re-engagement strategies.

Real-Time Nationwide Database

View prospects, buyer feedback, offer activity and status updates.

Buyer and sale information.

Effective team communication and coordination during process.

Current historical market information.

Tracking of assets and loans.

Peace of mind knowing your data is secure.

43

BERKADIA / ELIZABETH PORTFOLIO

A LONG TRADITION OF TAKING THE LONG VIEW. BERKADIA / ELIZABETH PORTFOLIO

44

Not your typical CRE firm.

Before we tell you what we are, we’d like to tell you what we’re not. We’re not tied to quarterly earnings reports, because we’re privately held. Our ownership structure is unique, so we can think, solve, and react differently.

We’re a joint venture of Berkshire Hathaway and Jefferies Financial Group – both of which are renowned for their capital strength and sophisticated investment strategies. We have Investment Sales, Mortgage Banking, and Servicing seamlessly integrated so we can adapt in real time—which means we’ll craft custom, long-term solutions that deliver the best outcomes.

We’re Berkadia. A different kind of CRE firm. With industry-leading investments in technology, and data-driven insights from the country’s most skilled CRE experts, we’re built to be more flexible, creative, and innovative.

Deal after deal. Year after year.

45

BERKADIA / ELIZABETH PORTFOLIO

INVESTMENT ADVISORS NAT GAMBUZZA

Senior Managing Director NJ DRE #0123988 973.809.1755 nat.gambuzza@berkadia.com

TREVOR FIEBEL

Senior Director NJ DRE #1431448 908.285.6921 trevor.fiebel@berkadia.com

NICK BALANCIA

Associate Director NJ DRE #2322128 908.642.1905 nick.balancia@berkadia.com

BRIAN ANTOGNINI

Senior Transaction Manager NJ DRE #1111667 201.739.2331 brian.antognini@berkadia.com

MORRISTOWN, NEW JERSEY 17 Headquarters Plaza West Tower 8th Floor Morristown, NJ 07960

DISCLAIMER 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. © 2024 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 Berkadia Affordable Tax Credit Solutions. 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 company business in Nevada. For state licensing details for the above entities, visit www.berkadia.com/licensing. ​​​​​