The State Apartments / Phase I

January 1, 2024

EPC Real Estate Group

The State Apartments 1500 MEADOW LAKE

C R E AT I N G A

VISION F O R T H E S TAT E A P A R T M E N T S

Table of Contents

Section 1

BIG PICTURE 7 PROJECT SNAPSHOT Section 2

DESIGNING FOR THE MARKET 11 LOCATION DESIGN CONCEPT AMENITIES / FINISHES RENTER PROFILE Section 3

PROJECT ECONOMIC ANALYSIS 31 DEVELOPMENT BUDGET COSTS & ECONOMIC RETURNS SALE EOY 4 AT STABILIZATION CASH FLOW PROJECTIONS YRS 1-10 Section 4

APPENDIX 41

PROJECT SCHEDULE UNIT MATRIX MARKET RENTAL COMPS MARKET DEMAND FACTORS

Section 1

BIG PICTURE

7

Project Snapshot

Total Units

213

Total GSF

210,334

Total NRSF

162,533

Garage Stalls

237

Surface Stalls

33

Average Unit Size

80% Efficiency

763 SF 132

61.97%

6

2.81%

2 BR

37

17.37 %

Micro

18

8.45%

Studio

20

9.39%

1 BR 1 BR + DEN

Average Rent/Unit

$1,979

Average Rent/SF

$2.59

Total Costs

$62,988,584

$295,721 / Unit

8

Section 2

DESIGNING FOR THE MARKET

11

STATE LINE ROAD

Location

MEADOW LAKE PARKWAY

12

Pedestrian Context

13

Site Plan

SITE DATA TABLE EXISTING ZONING: SITE ACREAGE:

BP3-2 3.63 AC

PROPOSED MXD BUILDING, 1 STORY PODIUM W/ 4 LEVELS OF RESIDENTIAL ABOVE. EXISTING OFFICE BUILDING TO REMAIN AND BE RE-UTILIZED FOR PARTIAL GROUND FLOOR COMMERCIAL AND APARTMENT AMENITIES. APARTMENT UNITS: 213 UNITS TOTAL MICRO-STUDIOS STUDIOS: ONE BEDS: ONE BED DENS: TWO BEDS:

38 UNITS 52 UNITS 80 UNITS 6 UNITS 37 UNITS

PARKING: 6 SURFACE STALLS 27 ANGLED STALLS 237 COVERED STALLS 270 TOTAL STALLS PROVIDED 213 DEDICATED APARTMENT STALLS CROSS PARKING AVAILABLE FOR COMMERCIAL USE.

N

SITE PLAN 1 1" = 60'-0"

14

Design Concept

NEED:

There is high demand from a broad demographic to live in “fringe” locations around the central core in Kansas City, Mo. These site an infill site currently developed for office or retail and are functionally obsolete.

EPC has a keen intuition for finding sites that meet the needs / demands of the modern renter.

LOCATION:

1500 Meadow Lake is unique in that it is a small commercial node in the middle of a residential neighborhood.

Located across the street from a new Hyvee Grocery, several local shops, gasoline, liquor and food options, it offers the neighborhood and it needs for basic service. Additional fast food, a CVS, and a car wash is just two blocks away. It is central to and approximately 1 mile from several popular retail and restaurant centers.

ARCHITECTURE:

The building exterior will offer the neighborhood a refresh of the existing office building and incorporate modern residential and industrial design. Two-story walk-up townhomes will be incorporated into the north side on 76th Street. The building colors intend to add some “pop” to the area.

TARGET USER:

Our market area extends to the entire metro but is focused within 5 miles of the site. The target renter is looking to move in the area between and Plaza on the north and I-435 on the south.

Many renters are looking to stay close the Kansas State Line but stay in Missouri. This area on both the Missouri and Kansas side is one of the hardest to find a home to buy in the KC Metro area. The target renter frequents the Plaza, Waldo, Ward Parkway Shopping Center, Corinth Shopping Center and Prairie Village Shopping Center. In addition, many friends and family reside in the area.

Many large employers also office along the Ward Parkway and State Line corridors.

15

Project Rendering

16

First and Second Level

5' - 5 11/16"

N

LEVEL 2 OVERALL PLAN 2 1" = 60'-0"

N

LEVEL 1 OVERALL PLAN 1 1" = 60'-0"

18

Upper Levels

N

LEVEL 4 OVERALL PLAN 4 1" = 60'-0"

N

LEVEL 3 OVERALL PLAN 3 1" = 60'-0"

19

Amenities Offsite / Adjacent Amenities • Hyvee Grocery, Trader Joe’s • Local and National Restaurants • Locally owned small businesses Design • Four story elevator service • Controlled access facility • Floor plans to fit demographic needs • Top of the market finishes and materials Resident Clubhouse • Clubroom for resident events • Bourbon lounge • Game room with golf simulator • 24 hour fitness center including yoga and crossfit Courtyard • Resort lagoon style pool with lounge chair wading area • Pool cabanas • Gourmet BBQ grill with outdoor seating • Fire pit with flat screen TV • v with quartz countertops • Kitchen islands avaliable • Gooseneck pull down faucet • Stainless steel appliances • Separate laundry rooms with full size washer and dryer • Two tone paint with accent wall in master and living areas • Multiple flat screen TV hookup locations • Large balconies • Simulated wood plank floors • Carpeted bedrooms • Tiled bathroom and stand up showers Concierge Services • Trash valet • Dogwash • Dry cleaning valet

20

STATE LINE ROAD

MEADOW LAKE PARKWAY

22

Courtyard Amenities

23

Finishes Our team has a high standard for our facility’s interiors. We want to deliver the best to our tenants and have a record of top quality units and common areas.

FLOORING: Each project varies slightly as new products hit the market.

We make our selections with durability and appearance top of mind.

Primarily, the flooring has been wood-like vinyl plank flooring in the kitchen and family room, carpet in the bedrooms, and tile in the restrooms and laundry room COUNTERTOPS: As a high quality developer we only use granite or quartz. Primarily, we are currently sourcing quartz, but this is constantly threatened by tariffs. We have partners we work closely with to fabricate counter tops overseas in controlled facilities where we can change 1% of the aggregate mix to avoid certain tariffs. Timing of purchase will guide this selection HARDWARE, SINKS, ETC: Similar to above, we have proprietary sources and also work closely with sub trades to get the most current looks and best value. Since these are showpieces of a unit, we are always top of the market and due to bulk purchasing for all of our properties we get preferred pricing.

Our interior designer will collaborate with Klover to ensure the best applications are selected at the right price point for our target demographic.

Below and on the following page are examples of recent projects that are representative of typical unit and common area finishes.

24

Renter Profile WHO ARE WE? Emerald City’s denizens live in lower-density neighborhoods of urbanareas throughout the country. Young and mobile, they are more likely to rent. Half have a college degree and a professional occupation. Incomes close to the US median come primarily from wages, investments, and self-employment. This group is highly connected, using the Internet for entertainment and making environmentally friendly purchases. Long hours on the Internet are balanced with time at the gym. Many embrace the “foodie” culture and enjoy cooking adventurous meals using local and organic foods. Music and art are major sources of enjoyment.

They travel frequently, both abroad and domestically.

OUR NEIGHBORHOOD •

There are mostly older, established neigh-borhoods with homes built before 1960; around 30% built before 1940.

•

Just over half of all homes are renter occupied.

•

Single-person and nonfamily types make up over half of all households.

•

Median home value and average rent are slightly above the US levels; around half of owned homes are worth $150,000–$300,000

26

SOCIOECONOMIC TRAITS OF TARGET USER • Consumers research products carefully before making purchases • They buy natural, green, and environmentally-friendly products • Very concious of nutrition, regularly buying and eating organic foods from Trader Joe’s and Whole Foods • Cell phones and text messagzing are a huge part of everyday life • They place importance on learning new things to keep life fresh and variable • They are interested in the fine arts and especially enjoy listening to music

27

Target Market - Brookside / Waldo

Prairie Village / Corinth

28

Section 3

PROJECT ECONOMIC ANALYSIS

31

Development Budget ACQUISITION COSTS Land Costs

$5,360,000

Closing Costs

$30,000

Preliminary Assessments

$0 Total Acquisition Costs: $5,390,000

HARD COSTS Site Work

$2,688,088

Construction Costs

$42,011,445

Hard Cost Contingency (3%)

$1,260,343 Total Hard Costs: $44,346,359

SOFT COSTS Architectural / Engineering / Design

$1,555,686

FFE, Gov Fees, Market Study, Startup

$1,565,830

Legal

$200,000

Marketing

$81,000

Taxes

$200,000

Insurance

$600,000

Construction Financing Costs

$4,940,513

Soft Cost Contingency (3%)

$308,960

Development & Construction Management

$2,204,600

Commercial TI Allowance

$485,756

TOTAL PROJECT COSTS

$62,988,584

32

Costs & Economic Returns

$62,988,584

Total Costs

$295,721 per unit

$5,390,000

Land Costs

$25,305 per unit

Asset Level IXRR EOY 4

Sale at stabilization - 5.00% cap rate at exit

LP IXRR EOY 4

Return to Phase I investors Initial IXRR 19.70% @ 4.75 cap

$81,125,093

Asset Value EOY 4

Projected at stabilization - 5.00% cap rate at exit

$94,430,093

10 YR Hold Value

5.00% cap rate at exit

Stabilized Yield on Cash Years 6-10

During 5 year interest only period

DSCR @ Stabilization

Assumes 70% debt

16.77%

10 YR XIRR

Asset level

6.86%

Yield on Cost

3.37x

10 Yr. Equity Multiple

5.00% cap rate at exit

60%

Reduction in Tax Expense

Port KC Tax Abatement 20 yrs

25.18% 20.16% @ 4.75 cap 18.20% @ 5.00 cap 14.52% @ 5.50 cap

10.43% 1.67

33

Underwriting Approach EPC FINANCIAL UNDERWRITING METRICS - GO OR NO-GO DECISION Typical First to Market EPC Profile or Leasehold Interest

Allowable Profile for unique growth markets (Salt Lake City, Select sites in Dallas, Austin)

Yield on Cost (NOI/Cost)

6.5% - 7.0%

Yield on Cost (NOI/Cost)

6.0% - 6.5%

Typical Exit Cap

5% - 6%

Typical Exit Cap

5.0% - 5.5%

5 YR Asset IRR Target

20%

5 YR Asset IRR Target

15%

10 YR Asset IRR Target

15%

10 YR Asset IRR Target

13%

5 YR LP Equity Multiple

2x

5 YR LP Equity Multiple

1.75x

10 YR LP Equity Multiple

3x

10 YR LP Equity Multiple

2.25x

EPC has adopted a set of metrics specific to the risk profile of the areas in which we develop. Below is a summary of the drivers which allow us and our capital partners to move forward at the outlined metrics for our projects: 1. Market driven lower cap rates at exit 2. Increased interest from capital sources (lower cost of capital due to reduced risk profile) 3. Directly in the growth path 4. Demographic Profile 5. Barrier to entry 6. Unique amenity profile in the community

34

Ownership Structure Ownership Entity:

Meadow Lake Apartments, LLC

Project Cost: $ 62,988,584

Land Aquired: September 2022

Equity Requirement (30%): $ 18,896,575

Phase I Raise (Land Investors) $ 4,470,000 23.66%

Phase II Raise (Construction Period Investors) $ 11,176,917 59.15%

Developer (EPC) $ 1,889,658 10.00% (Preferred Equity) $ 1,360,000 7.20%

100.00% Debt (70%): $ 44,092,009

Preferred Return: Common Investor - 10%

Preferred Equity - 12%

Distributions from Sale: 70% Common Investor / 30% Developer after 10% hurdle rate

Holding Period: All EPC projects are underwritten to maximize profits to our investors. At the time of stablization, the

project will be valued for immediate sale compared to refinancing and holding for up to 10 years.

EPC will crystallize its promote interest when the property is refinanced.

35

Why EPC as Partners?

Our Team is ready to deliver on our vision for The State Apartments to "Create theNext Experience" in the Kansas City market. Our expertise will make this development a smooth and straight forward process.

In the past nine years EPC has successfully developed, financed, constructed and leased close to 4,000 multifamily units at a cost of approximately $1 Billion.

EPC is in the development phase of more than $300 million in proposed developments. These deals are controlled by EPC, or are approaching the construction phase.

PRODUCT TYPES APARTMENTS OFFICE RETAIL MIXED USE MEDICAL SENIOR/ ADULT

36

Sale EOY 4 at Stabilization The State Apartments

Mixed Use Executive Summary

DEAL INPUTS

Project Timing

General Assumptions

Deal Name: Operating WS Name: City: State: Address: Analysis Start Date:

The State Apartments Multifamily Operations Kansas City MO

Property Type:

Mixed Use

Valuation Assumptions

Sale Date Sale Methodology Capped NOI Gross Sale Price (Input) Cap Rate Cost of Sale (%) Sale Price w/o TIF Cashflow NPV of Tax Reimbursement Cash Gross Sales Price Costs of Sale ($) Net Sale Proceeds Gross Leveraged IRR

Analysis Start Date: Land Hold Phase: Construction Phase: Lease-up Phase: Operations/Perm Loan Phase:

9/22/2022

Start Date

Duration

9/22/2022 9/1/2022 4/1/2024 1/1/2026 4/1/2027

$ Amount

Sources Total Detailed Sources of Capital Total Construction Loan Funding Total Equity Funding

5.00% 0.75% $77,869,536 $3,868,593 $81,738,128.92 ($613,036) $81,125,093 25.18%

Construction Financing

9/22/2022 3/31/2024 1/31/2026 3/31/2027 8/31/2032

Construction Funding: % of Total Project Costs: Interest Rate: Term:

$44,092,009 70.00% 6.50% 55 Months

Perm. Loan

SOURCES AND USES

3/31/2027 Month x 12 $3,893,477

DEBT SUMMARY

End Date 0 19 22 15 65

Uses Total Acquisition Costs Total Hard Costs Total Soft Costs Total Cash Flow from Operations

% of Total $0

0.00%

$44,092,009 $18,896,575 $62,988,584

70.00% 30.00% 100.00%

($5,830,000) ($44,346,359) ($12,812,225) $0 ($62,988,584)

9.26% 70.40% 20.34% 0.00% 100.00%

Loan Amount: LTV (Initial DCF Valuation): Additional Funded Cap: Interest Rate: Fixed or Floating: Loan Term: Funding Month: Amort Term: I/O Period: Refinance?

Loan Fee: Prepayment Penalty:

$44,092,009 66.08% $0

$0 0.0% $0

$0 0.0% $0

Fixed 30 Yrs 56 N/A 0

Fixed 20 Yrs 1 N/A N/A

0.0% 0.0%

0.0% 0.0%

Fixed 20 Yrs 1 N/A N/A No 0.0% 0.0%

Year 7 9/28 8/29

Year 9 9/30 8/31

RELEVANT METRICS AND CASH FLOW PROPERTY CASH FLOW

Total

Period Beginning Period Ending

Year 0 9/22 9/22

Year 1 9/22 8/23

OPERATING METRICS Total # Avg. # Occupied Avg. Occupancy % Development Costs TOTAL ACQUISITION COSTS TOTAL HARD COSTS TOTAL SOFT COSTS Total Cash Flow from Operations

TOTAL DEVELOPMENT COSTS

(5,830,000) (44,346,359) (12,812,225) 0 (62,988,584)

20,688,453

Year 5 9/26 8/27

Year 6 9/27 8/28

Year 8 9/29 8/30

Year 10 9/31 8/32

Year 11 9/32 8/33

0 0

0 0

0 0 0%

0 0 0%

0 0 0%

0 0 0%

0 0 0%

0 0 0%

0 0 0%

(5,830,000) 0 0 0 (5,830,000)

0 (7,590,953) (1,592,981) 0 (9,183,934)

0 (28,987,895) (5,358,340) 0 (34,346,235)

0 (7,767,511) (4,224,725) 0 (11,992,235)

0 0 (1,636,180) 0 (1,636,180)

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0

1,257,813 (728,292) 529,521 (507,056) 22,465 0 485,756 0 508,221

5,219,018 (1,349,067) 3,869,951 (32,163) 3,837,788 0 0 0 3,837,788

5,829,047 (1,400,417) 4,428,630 (32,485) 4,396,146 0 0 0 4,396,146

5,994,506 (1,428,126) 4,566,381 (32,809) 4,533,571 0 0 0 4,533,571

6,164,752 (1,457,380) 4,707,371 (33,138) 4,674,234 0 0 0 4,674,234

6,339,925 (1,522,438) 4,817,486 (33,469) 4,784,017 0 0 0 4,784,017

6,520,169 (1,571,736) 4,948,433 (33,804) 4,914,629 0 0 0 4,914,629

6,705,634 (1,602,258) 5,103,375 (34,142) 5,069,234 0 0 0 5,069,234

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0

(5,830,000)

(9,183,934) 57.5%

(34,346,235) 274.0%

(11,484,014) -66.6%

407,543 -103.5%

0 -100.0%

0

0

0

0

0

0 0 0 0

0 0 0 0

0 0 0 0

0 30,463,594 0 0

0 11,992,235 0 0

81,125,093 1,636,180 0 (44,092,009)

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

0

(5,830,000)

(9,183,934)

(3,882,641)

508,221

39,076,807

0

0

0

0

0

0

0 0 0 0 0

FUNDED PROPERTY CASH FLOW

TOTAL CASH FLOW

Year 4 9/25 8/26

0 0

DEBT SERVICE Permanent Financing Interest Permanent Financing Principal

CASH FLOW AFTER DEBT SERVICE

Year 3 9/24 8/25

0 0

PROPERTY CASH FLOW Total Effective Gross Revenue Total Operating Expenses Net Operating Income Total Capital Costs Property Cash Flow Funded Capital Expense TI & LC accounted for in Project Costs CF from Operations accounted for in Project Costs

YOY Variance / %Tot. Rev. NET FINANCING Net Sale Proceeds Loan Funding Loan Fees Loan Payoff

Year 2 9/23 8/24

37

Cash Flow Projections Years 1-10 The State Apartments

Mixed Use Executive Summary

PROPERTY CASH FLOW

Year 0 9/22 9/22

Total

Period Beginning Period Ending

Year 1 9/22 8/23

Year 2 9/23 8/24

Year 3 9/24 8/25

Year 4 9/25 8/26

Year 5 9/26 8/27

Year 6 9/27 8/28

Year 7 9/28 8/29

Year 8 9/29 8/30

Year 9 9/30 8/31

Year 10 9/31 8/32

Year 11 9/32 8/33

OPERATING METRICS Total #

0

0

0

0

0

0

0

0

0

0

Avg. # Occupied

0

0

0

0

0

0

0

0

0

0

0

0%

0% 0

Avg. Occupancy %

0

Development Costs TOTAL ACQUISITION COSTS

(5,830,000)

0

(5,830,000)

0

0

0

0

0

0

0

0

0

TOTAL HARD COSTS

(44,346,359)

0

0

(7,590,953)

(28,987,895)

(7,767,511)

0

0

0

0

0

0

0

TOTAL SOFT COSTS

(12,812,225)

0

0

(1,592,981)

(5,358,340)

(4,224,725)

(1,636,180)

0

0

0

0

0

0

Total Cash Flow from Operations

0

0

0

0

0

0

0

0

0

0

0

0

0

TOTAL DEVELOPMENT COSTS

(62,988,584)

0

(5,830,000)

(9,183,934)

(34,346,235)

(11,992,235)

(1,636,180)

0

0

0

0

0

0

Total Effective Gross Revenue

0

0

0

1,257,813

5,219,018

5,829,047

5,994,506

6,164,752

6,339,925

6,520,169

6,705,634

Total Operating Expenses

0

0

0

(728,292)

(1,349,067)

(1,400,417)

(1,428,126)

(1,457,380)

(1,522,438)

(1,571,736)

(1,602,258)

Net Operating Income Total Capital Costs

0 0

0 0

0 0

529,521 (507,056)

3,869,951 (32,163)

4,428,630 (32,485)

4,566,381 (32,809)

4,707,371 (33,138)

4,817,486 (33,469)

4,948,433 (33,804)

5,103,375 (34,142)

Property Cash Flow Funded Capital Expense

0

0

0

22,465

3,837,788

4,396,146

4,533,571

4,674,234

4,784,017

4,914,629

5,069,234

0

0

0

0

0

0

0

0

0

0

0

TI & LC accounted for in Project Costs

0

0

0

485,756

0

0

0

0

0

0

0

CF from Operations accounted for in Project Costs

0

0

0

0

0

0

0

0

0

0

0

0

0

0

508,221

3,837,788

4,396,146

4,533,571

4,674,234

4,784,017

4,914,629

5,069,234

0 0

0 0

0 0

0 0

(1,102,300) 0

(2,645,521) 0

(2,645,521) 0

(2,645,521) 0

(2,645,521) 0

(2,643,315) (221,675)

0 0

0

(5,830,000)

(9,183,934) 57.5%

(34,346,235) 274.0%

(11,484,014) -66.6%

1,099,308 -109.6%

1,750,625 59.2%

1,888,051 7.9%

2,028,713 7.5%

2,138,497 5.4%

2,049,639 -4.2%

0 -100.0%

0 0 0 0

0 0 0 0

0 0 0 0

0 30,463,594 0 0

0 11,992,235 0 0

0 45,728,189 0 (44,092,009)

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

94,430,093 0 0 (43,870,334)

0 0 0 0

0

(5,830,000)

(9,183,934)

(3,882,641)

508,221

2,735,488

1,750,625

1,888,051

2,028,713

2,138,497

52,609,399

0

0.00% / 0.00% -30.85%

0.00% / 0.00% -48.60%

0.00% / 0.00% -181.76%

0.84% / 0.04% -60.77%

6.14% / 6.09% 5.82%

7.03% / 6.98% 9.26%

7.25% / 7.20% 9.99%

7.47% / 7.42% 10.74%

7.65% / 7.60% 11.32%

7.86% / 7.80% 10.85%

8.10% / 8.05% 0.00%

PROPERTY CASH FLOW

FUNDED PROPERTY CASH FLOW DEBT SERVICE Permanent Financing Interest Permanent Financing Principal

CASH FLOW AFTER DEBT SERVICE

YOY Variance / %Tot. Rev. NET FINANCING Net Sale Proceeds Loan Funding Loan Fees Loan Payoff

TOTAL CASH FLOW YIELDS Income Yield / Cash on Cash Yield Leveraged Cash on Cash Yield

44,762,418

38

Section 4

APPENDIX

41

Project Schedule

42

Unit Matrix MEADOW LAKE APARTMENTS 9/12/2023

Unit Breakdown

DEMOGRAPHIC

Unit Type/SF

1st flr

2nd flr

3rd flr

4th flr

5th flr

TOTAL

SF

Percent

MS1 New, unique Unit Type MS2 MS3 MS3 - Slightly larger after 8/3 changes Same as the MS3

MICRO STUDIO MS1 381 S.F. OFF-MS1 420 S.F. MS2 367 S.F. MS3 446 S.F. MS3 Large 480 S.F. OFF-MS3 446 S.F.

0 0 0 0 0 0

2 0 3 1 2 2

2 3 3 1 2 2

2 0 3 2 2 0

1 0 2 1 2 0

7 3 11 5 8 4 38

2,667 S.F. 1,260 S.F. 4,037 S.F. 2,230 S.F. 3,840 S.F. 1,784 S.F. 15,818 S.F.

3% 1% 5% 2% 4% 2% 17.8%

557 S.F. 557 S.F. 649 S.F. 525 S.F.

0 0 0 0

2 1 7 0

5 2 8 1

5 0 14 0

1 0 6 0

13 3 35 1 52

7,241 S.F. 1,671 S.F. 22,715 S.F. 525 S.F. 32,152 S.F.

6% 1% 16% 0% 24.4%

861 S.F. 785 S.F. 917 S.F.

0 0 0

0 6 1

1 6 1

0 6 0

0 6 0

1 24 2

861 18,840 S.F. 1,834 S.F.

0% 11% 1%

A1 from Locale - renamed to S1 per request Similar to the S1 S2 from Locale - renamed to S2 per request New, unique Unit Type

S1 OFF-S1 S2 OFF-S2

New, unique Unit Type 225 inside corner New, unique Unit Type

OFF-A1 A2 OFF-A2

Locale Large Entry One Bed (2 Type A Units) Locale Large Entry One w/ powder Locale Large Entry One ALTERNATE Locale smaller corner unit Locale larger corner unit TH Walk up Delano

STUDIO

1 BDRM

A3

764 S.F.

0

9

10

11

6

36

27,504 S.F.

17%

A4 A4.1 A5 A6 A7 A8-TH

793 S.F. 907 S.F. 851 S.F. 729 S.F. 1,069 S.F. 1,091 S.F.

0 0 0 0 0 0

1 0 1 1 0 8

0 1 0 0 1 0

0 1 0 0 1 0

0 1 0 0 1 0

1 3 1 1 3 8 80

793 S.F. 2,721 S.F. 851 S.F. 729 S.F. 3,207 S.F. 8,728 S.F. 66,068 S.F.

0% 1% 0% 0% 1% 4% 37.6%

1 BDRM + DEN

One Bed den (2 Type A Units) One Bed den New, unique Unit Type

New, unique Unit Type Entry 2 Bed Locale Large 2 bed Locale (1 Type A Unit) Outside Corner 2 bed 225 Holiday Hills C7 New, unique Unit Type TH Walk up 2 bed Domain

B1

1,009 S.F.

0

1

1

1

0

3

3,027 S.F.

1%

B2 OFF-B2

1,109 S.F. 1,160 S.F.

0 0

0 0

0 1

1 0

1 0

2 1 6

2,218 S.F. 1,160 S.F. 6,405 S.F.

1% 0% 2.8%

1,309 S.F. 981 S.F.

0 0

1 2

1 4

0 4

0 4

2 14

2,618 S.F. 13,734 S.F.

1% 7%

OFF-B1 C1

2 BDRM

C2

1,105 S.F.

0

1

1

2

1

5

5,525 S.F.

2%

C3 C4 OFF-C5 C8-TH

1,211 S.F. 1,190 S.F. 1,272 S.F. 1,420 S.F.

0 0 0 0

3 0 0 4

3 0 1 0

3 0 0 0

1 1 0 0

10 1 1 4 37

12,110 S.F. 1,190 S.F. 1,272 S.F. 5,680 S.F. 42,129 S.F.

5% 0% 0% 2% 17.4%

0

59

61

58

35

213 Avg.

162,572 S.F. 763.2

100%

TOTAL

Future Retail Space Amenity Space / Leasing / Mail Bar / Lounge / Fitness Space

4,961 S.F. 5,699 S.F.

4,961 S.F. 5,699 S.F. 6,485 S.F.

6,485 S.F.

PARKING SPACES Angled Stalls 27 Surface Stalls 6 Covered Stalls 237 Total Stalls: 270 SUBTOTAL AMENITY AREAS

Common Area / Corridors / Storage / Mech. / Trash Room

Total without Parking

17,145 S.F.

1,787 S.F.

11,995 S.F.

10,299 S.F.

10,753 S.F.

5,664 S.F.

40,498 S.F.

220,215 S.F.

43

Market Rental Comps 1500 Meadow Lake

Property Comps | Apartments

3% Annual Escalation from 3 years from 2023 Start 1500 Waldo

Micro Studio One Bed Starter

SF Rent

1 BR + Den

$2.80 - $2.90

SF Rent

448 -557 1,295 - 1,595

Rent/sf

$2.78 - $2.95

2 BR Starter 2 BR Large 2 BR TH 2 Story

$

619 1,518

$

840 1,817

SF Rent $

785 1,895

SF Rent $

1,009 2,295 $2.27

$

$

995 2,068

SF Rent $

1,091 2,395

$

1,171 2,111

SF Rent $

981 2,495

SF Rent $

1,211 2,895

SF Rent $

1,420 3,195

Rent/sf

Rent/sf

Rent/sf

Rent/sf

Brookside 51 Westport

$2.48

$

2.16

$2.41

$2.20

$2.25

$

657 1,659

$

745 1,814

$

860 2,009

$

$

$

2.08

Woodside Village Westwood

552 1,806

$

LoCale Mission

$3.27

$

765 2,411

$

$

1,171 2,076

$

1,393 2,266

$

2.43

2.34

$

801 2,044

$

941 2,365

$

$

$

3.15

$ $

1,180 2,704

1.77

$

1,317 2,851

1.63

$

$

2.29

2.29

2.16

$

1,087 3,048

$

1,125 3,286

$

1,207 3,410

$

$

$

2.92

2.83

$

1,331 2,904

$

2.13

2.18

380 1,039

2.36

$

2.78

$

2.73

$

-

$

490 1,262

$

500 1,097

$

2.59

$

2.57

$

2.58

$

2.19

$

755 1,764

$

760 1,741

$

865 1,743

$

972 1,832

1.88

$

$

915 1,978

2.16

$

$

1,097 1,926

$

1,033 2,106

$

980 2,301

$

1,062 1,750

$

1,112 2,377

$

1,112 1,882

$

1,321 2,573

$

2.34

2.33

$

$

$

$

$

$

950 2,234

$

1,121 2,628

$

1,369 3,051

$

$

420 1,167

3.47

$

1,156 2,466

$

633 2,049

1,015 2,366

2.80

464 1,095

$

3.14

$

$

$

782 2,081

$

421 1,461

West Bottoms Flats Micro Comp

2.71

2.55

2.51

$

Arterra Micro Comp

565 1,451

$

2.66

448 1,214

Converge KC Micro Comp

$

$

$

Three Light Micro Comp

$

$

$

1,038 2,379

$

$

2.53

The Vue Overland Park

593 1,534

562 1,765

1.80

$2.54

$2.39

$

$2.45

764 1,895

Rent/sf

44 Washington Plaza

$

SF Rent $

Rent/sf

1 BR TH 2 Story

46 Penn Plaza

381 - 446 1067 - 1,295

Rent/sf

Rent/sf

1 BR Large w/ Pwdr

51 Main Plaza

$

$

2.35

2.34

2.23

$

$

$

2.29

$

$

803 1,873

2.33

2.02

1.76

2.35

2.14

1.95

$

3.24

$

755 2,700

$

775 2,143

$

977 2,944

$

1,159 3,595

$

987 3,627

$

1,229 3,641

$

1,376 8,078

$

$

$

$

$

2.04 $ #REF!

1.65

1.69

$

$

$

3.58

2.77

3.01

3.10

3.67

2.96

5.87

44

45

1.0% 0.0% 0.5%

2015

2016

2017

2015

2016

2017

2018

2019

Kansas City

0.0%

Market Demand Factors

2021

2022

2023

2021

2022

2023

National

2018

Supply: Development Pipeline as of Jun 2023 (Kansas City)

2020

2019

Kansas City

2020 National

Supply: Development Pipeline as of Jun 2023 (Kansas City)

2013

2014

2015

2016

Volume in Millions

2018

2019

2020

2021

2022

2023

0

2.0% Rent: S3 vs National (Kansas City)

1.5%

2.0% 1.0% 1.5% 0.5% 1.0% 0.0%

Kansas City

1.5%

-2 3 Ju n -2 3 Ju n

-2 3 pr A -2 3 pr A

b23 Fe b23

-2 2 D ec

ct -2 2

Fe

-2 2 D ec

ct -2 2 O National

O

-2 2 A

ug

-2 2

A

ug

-2 2 Ju n -2 2

Kansas City

Ju n

-2 2 pr A -2 2 pr A

Fe b22 Fe

Source: Yardi Matrix

-2 1

D ec

-2 1

0.0% -0.5%

b22

0.5% -0.5%

Rent: Lifestyle vs RBN (Kansas City)

National

Kansas City Rent Growth by Asset Class (Trailing 3 Months) Rent: Lifestyle vs RBN (Kansas City) 1.0% 1.5% 0.5% 1.0%

Source: Yardi Matrix

Renter-by-Necessity

-2 3 Ju n -2 3 Ju n

pr -2 3 A pr -2 3 A

b23 Fe b23

D ec -2 2 D ec

-2 2

O ct

A

ug

-2 2

-2 2

Lifestyle

Fe

-2 2

-2 2 O ct

-2 2 A

ug

-2 2 Ju n

Renter-by-Necessity

Ju n

pr -2 2 A pr -2 2 A

Fe b22 Fe

D ec D ec

-2 1

-0.5%

-2 1

O ct

-2 1

-2 1

-0.5% 0.0%

b22

0.0% 0.5%

O ct

Developers had 6,890 units underway as of June. The number of construction starts almost tripled year-to-date as of June from the same period last year. Meanwhile, investment activity tapered off, with just $238 million in multifamily assets trading through June, for a price per unit that declined 22%.

2017

Rent:City S3 vs National City) Kansas vs. (Kansas National Rent Growth (Trailing 3 Months) Number of Properties Volume in Millions

D ec

The Kansas City unemployment rate stood at 2.8% in May, a 10-basis-point increase since the start of the year, according to data from the Bureau of Labor Statistics. While it trailed Missouri (2.5%) and Kansas (2.9%), the metro led the 3.7% national rate.

The economy added 34,500 positions in the 12 months ending in April, the equivalent of a 3.2% expansion and ahead of the 2.9% national rate. All sectors gained jobs, led by leisure and hospitality (10,700 jobs). Job growth was aided by increased visitor volume, which in 2022 surpassed pre-pandemic levels.

Number of Properties

$0

ct -2 1

Kansas City displayed healthy fundamentals going into the third quarter, sustained by the metro’s affordability and steady economy. Rents advanced 0.7% on a trailing three-month basis through June, and were up 5.2% year-over-year, marking one of the year’s strongest performances. Yet with an average rent of $1,241, the metro remained among the country’s more affordable markets.

Meanwhile, the occupancy rate in stabilized properties held up relatively well, declining by 60 basis points in the 12 months ending in June, to 95.1%.

13,963 Units

43,797 Units

O

Steady Demand Boosts Rent Growth

13,963 Units

➤ Kansas City’s average asking rent rose 0.7% on basis points in the 12 months ending in June, to a trailing three-month (T3) basis through June, 95.1%. The decrease was equal across property 43,797 Units posting a remarkable performance from the segments, down 0.5% in both, to 94.8% for RBN Planned -0.2% low in January. Moreover, atProspective $1,241, theUnder Constructionand to 95.4% for Lifestyle. metro remains fairly affordable and well below ➤ Rents increased in all submarkets on a yearVolume (Kansas City) theTransactions: $1,726Total U.S. rate, which postedProspective a 0.2% in- Under Construction Planned over-year basis through June, with nine crease during the period. On a year-over-year $2,500 100 posting double-digit rent development. This performance basis, rate Total growth in Kansas City hit 5.2% as of Transactions: Volume (Kansas City) increased the number of submarkets80with rents June.$2,000 The metro came in as a top performer and $2,500 above the $1,000 mark to 27 from 21100 a year ago. was significantly ahead of the 1.8% U.S. figure. $1,500 60 The most expensive areas remained Downtown $2,000 80 ➤ Rent expansion was led by the upscale Lifestyle Kansas City (2.0% to $1,568), Overland Park$1,000 40 segment, up 0.9% on a T3 basis through June Southeast (5.7% to $1,503) and Overland Park$1,500 60 to $1,506. Meanwhile, working-class RenterSouthwest (9.6% to $1,488). $500 20 by-Necessity figures rose 0.5% to $1,033. The $1,000 40 ➤ The metro’s single-family rental segment also metro’s$0 limited supply expansion helped sustain 0 healthy as of $500 20 2013 but 2014 2015occupancy 2016 2017 2019 2020 2021annual 2022 growth, 2023 up 3.4% not just rent growth also the rate 2018 recorded June, while occupancy was down 0.2% as of May. in stabilized properties, which declined just 50

ct -2 1

Market Analysis | August 2023

6,890 Units

RENT TRENDS

O

KANSAS CITY MULTIFAMILY

6,890 Units

Lifestyle

Kansas City Multifamily | August 2023

3

46

Market Demand Factors

data by

10 Most Affordable US Markets

By Anca Gagiuc

Before the health crisis, metros located farther from gateway cities offered more attainable rents. Then the work-from-home trend morphed into a new way of living. Eliminating daily commutes enabled people to redesign their lives and suddenly, housing affordability improved, as long as relocation was considered.

Rank

Metros

Average rent RBN Segment

Rent Growth T3 % RBN

Rent Growth RBN % March 2022 vs. March 2023

1

Kansas City

$1,031

1.5%

8%

2

St. Louis

$1,055

0.3%

5.9%

3

Houston

$1,060

1.1%

5.4%

4

San Antonio

$1,078

−0.2%

5.2%

5

Indianapolis

$1,093

1.7%

9.1%

6

Columbus

$1,143

1.6%

7.2%

7

Cincinnati

$1,151

2.1%

8.8%

8

Albuquerque

$1,157

−0.4%

8.2%

9

Detroit

$1,179

−0.5%

3.3%

10

Pittsburgh

$1,198

1.5%

6.3%

Kansas City Kansas City was the most affordable major multifamily rental market, with the average RBN rent at $1,031 as of March, up 1.5% on a T3 basis and 8.0% above the rate posted in March last year. Here, RBN rent payment accounted for 23% of the area median income, the lowest rate in this group, on par with Cincinnati and Pittsburgh.

In 2023 through April, deliveries represented 0.6% of total stock, on par with Cincinnati. Last year, the metro’s stock expanded by 0.9%.

Kansas City Multifamily | August 2023

7

47