Encore at Murrells Inlet OM by MultifamilyInvestorNation

DAN HANDFORD

Managing Partner

404-316-8550

dan@passiveinvesting.com

DANNY RANDAZZO

Managing Partner

248-931-2528

danny@passiveinvesting.com

CONFIDENTIAL INVESTMENT MEMORANDUM

This document is confidential and may not be reproduced or redistributed. The information presented herein has been prepared for informational purposes only and is not an offer to buy or sell, or a solicitation of an offer to buy or sell any security or fund interest or any financial instrument and is not to be considered investment advice. This presentation is for institutional use only and is not to be distributed to any party other than its intended recipient.

The following materials present information regarding a proposed creation of a special purpose vehicle (the “Issuer”) which would offer securities (the “Securities”) to finance its acquisition of a portfolio of financial assets to be selected and managed by the portfolio manager referred to herein (the “Manager”). These materials have been prepared to provide preliminary information about the Issuer and the transactions described herein to a limited number of potential underwriters of the Securities for the sole purpose of assisting them to determine whether they have an interest in underwriting the Securities.

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

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

Forward-looking information contained in these materials is subject to certain inherent limitations. Such information is information that is not purely historical in nature and may include, among other things, expected structural features, anticipated ratings, proposed or target portfolio composition, proposed diversification or sector investment, specific investment strategies and forecasts of future market or economic conditions. The forward-looking information contained herein is based upon certain assumptions, which are unlikely to be consistent with, and may differ materially from, actual events and conditions. In addition, not all relevant events or conditions may have been considered in developing such assumptions. Accordingly, actual results will vary and the variations may be material. Prospective investors should understand such assumptions and evaluate whether they are appropriate for their purposes. These materials may also contain historical market data; however, historical market trends are not reliable indicators of future market behavior.

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

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

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

Institutional Quality Investment

The following information is an investment summary provided to prospective investors and others. This information is not an offering to sell either a security or a solicitation to sell a security. At the request of a recipient, the Company will provide a private placement memorandum, subscription agreement and the Limited Liability Company Operating Agreement. The Managing Member in no way guarantees the projections contained herein. Real estate values, income, expenses and development costs are all affected by a multitude of forces outside the Managing Member’s control. This investment is illiquid and only those persons that are able and willing to risk their entire investment should participate. Please consult your attorney, CPA and/or professional financial advisor regarding the suitability of an investment by you.

CORD GRASS LOOP MURRELLS INLET, SC

Investment Highlights

Newer Class-A Asset

Encore at Murrells Inlet is a build-to-rent townhome community delivered in 2022 featuring modern design and quality finishes.

Build-to-Rent Townhome Product

The community offers larger floorplans and direct-entry garages, providing renters with the space and privacy typically associated with single-family homes.

Strategic Coastal Location

Located in Murrells Inlet within the Myrtle Beach metropolitan area, a growing coastal market attracting new residents and lifestyle migration.

Strong Demographic Profile

The surrounding area benefits from favorable household income levels and population growth supporting long-term rental demand.

Attractive Housing Alternative

Townhome communities appeal to renters seeking more space than traditional apartments while maintaining the flexibility of renting.

Limited New Supply in Submarket

Development barriers and local constraints have limited the pipeline of new multifamily construction in the immediate area.

A Class-A build-to-rent community positioned in the growing Murrells Inlet submarket of the Myrtle Beach MSA.

Projected Returns

Investors benefit from a tiered preferred return structure that increases both income and profit participation at higher investment levels.

The structure aligns investor and sponsor incentives by prioritizing investor returns through the preferred return before profit sharing.

Capital Structure

Total Purchase Price

$36,000,000

The acquisition will be financed through a combination of senior debt and investor equity. Limited partner investors participate through Class A, B or C equity and receive a preferred return and profit participation based on investment tier.

CAPITAL STACK

$13,570,000

$24,983,000

Encore at Murrells Inlet

Encore at Murrells Inlet is a quality build-to-rent townhome community delivered in 2022. The property features modern coastal architecture, spacious floorplans, and direct-entry garages designed to appeal to renters seeking the space and privacy of single-family living with the flexibility of renting.

at Murrells Inlet Townhomes

Encore at Murrells Inlet Townhomes - Google Maps

Unit Mix

The property offers a mix of spacious townhome floorplans designed to appeal to renters seeking the comfort and privacy of single-family style living.

BEDROOM FLOOR PLAN

Amenities

Encore at Murrells Inlet’s modern coastal design and curated amenity package provide a best-in-class resident experience.

COMMUNITY AMENITIES

Fitness Center

Yoga & Spin Room

Resort-Style Pool

Tanning Shelf Clubhouse

Gaming Lounge

Bike & Kayak Storage

Leashless Dog Park

Dog Wash Station

Golf-Putting Green

Fire-Pit

Car Wash

Grilling Station

Outdoor Living Area

UNIT

FEATURES

Attached Garages*

Custom Shaker Cabinetry

Granite Countertops

Stainless Steel Appliances

Walk-In Closets*

Walk-In Showers*

Wood-Look Flooring

9’ Ceilings

Garden-Style Tubs*

Private Screened-In Porches

Pantries*

Dedicated Laundry Rooms

Washer/Dryer Appliances

Kitchen Island or Peninsula*

Pendant Lighting

Subway Tile Backsplash

*Select Units

LOCATION OVERVIEW

MYRTLE BEACH

South Carolina

National Recognition

Top U.S. Retirement Destination (U.S. News & World Report)

One of the Fastest Growing U.S. Metro Areas (U.S. Census Bureau)

Top Coastal Relocation Destination (United Van Lines Migration Study)

Among the Most Popular Beach Destinations in the U.S. (TripAdvisor / Travel rankings)

Coastal Migration

MYRTLE BEACH AT FOREFRONT OF HISTORIC POPULATION GROWTH

Southeast coastal markets continue to experience strong domestic migration, driven by lifestyle advantages, affordability, and expanding economic opportunities. Cities such as Myrtle Beach, Charleston, Wilmington, and Savannah have emerged as leading relocation destinations for residents leaving higher-cost metropolitan areas across the Northeast and Midwest.

Among these markets, Myrtle Beach has consistently ranked as one of the fastest-growing metropolitan areas in the United States, benefiting from strong population inflows, favorable tax advantages, and good quality of life. This sustained migration trend continues to support housing demand and long-term growth in the region’s rental market.

Southeast coastal markets continue to attract strong domestic migration, driving population expansion and long-term rental housing demand.

Myrtle Beach has emerged as one of the fastest-growing coastal markets in the United States, driven by sustained in-migration and strong housing demand.

Housing Demand

Rapid population growth and limited housing supply have significantly increased home prices across the Myrtle Beach MSA, pushing more residents toward rental housing.

The Myrtle Beach metropolitan area has experienced significant home price appreciation over the past decade as migration and population growth have accelerated housing demand. With a growing number of residents relocating to the region and housing supply struggling to keep pace, homeownership has become increasingly less attainable for many households.

As home prices and mortgage rates rise, many prospective buyers are choosing rental housing as a more flexible and affordable option. These trends continue to support strong demand for quality rental communities across the Myrtle Beach market.

Mortgage payments have more than doubled since 2020 due to rising interest rates and home prices.

Migration Growth Housing Shortage Rental Demand

Coastal Lifestyle

Myrtle Beach’s coastal lifestyle, recreation amenities, and year-round tourism continue to attract new residents and support strong long-term housing demand.

60+

Miles Of Pristine Beach Minutes Away10

Myrtle Beach consistently ranks among the top retirement destinations in the United States, supported by its coastal lifestyle, affordability, and favorable tax environment.11

17M+ Annual Visitors Each Year9

90+ Golf Courses in the Region9

Myrtle Beach offers one of the most desirable coastal lifestyles in the United States, combining more than 60 miles of coastline with world-class golf, entertainment, and dining. The region’s tourism economy continues to attract millions of visitors annually while also drawing a growing number of permanent residents seeking a high quality of life.

The area benefits from convenient regional access via Highway 17 and Myrtle Beach International Airport, supporting continued population growth and economic expansion across the Myrtle Beach metropolitan area.

Murrells Inlet Submarket

Murrells Inlet offers convenient access to Myrtle Beach’s coastal recreation, employment, and retail while maintaining a quieter residential environment along the South Strand.

5 Minutes

Murrells Inlet MarshWalk

10 Minutes Garden City Beach

20 Minutes Market Common

Murrells Inlet combines coastal lifestyle amenities with convenient access to the broader Myrtle Beach employment and retail corridors.

Demographic Strength

POPULATION GROWTH & HOUSING DEMAND

Population growth and rising incomes continue to support rental housing demand across the Myrtle Beach market.

The Myrtle Beach metropolitan area has experienced sustained population growth over the past decade1 as domestic migration continues to drive new residents to the region. Favorable tax policies, a lower cost of living relative to many coastal markets, and a desirable coastal lifestyle have made the market an increasingly attractive relocation destination for retirees, remote workers, and families alike.

As the population expands, the local housing market has faced increasing pressure from limited housing supply and rising homeownership costs. Home prices have increased significantly over the past several years, pushing many prospective buyers toward rental housing as a more attainable and flexible option.

These demographic trends have helped support strong multifamily fundamentals across the Myrtle Beach market. Rising population levels, favorable household incomes, and steady in-migration continue to contribute to growing demand for quality rental communities throughout the region.

Economic Drivers

Economic growth across the Myrtle Beach region supports continued population expansion and demand for rental housing.

The Myrtle Beach metropolitan area benefits from a diverse economic base supported by tourism11, healthcare, retail, and logistics industries. Continued population growth across Horry and Georgetown counties has expanded demand for healthcare services, retail development, and supporting employment sectors throughout the region.

Tourism remains a key economic driver with more than 17 million visitors traveling to the Grand Strand annually. At the same time healthcare and service industries continue to expand to support the region’s growing population, creating stable employment opportunities across the Myrtle Beach market.

RECENT ECONOMIC NEWS

• 2025: Trader Joe’s announced its first Myrtle Beach location, reflecting continued retail expansion driven by strong population growth in the region.

• 2024: DC BLOX completed a subsea cable landing station in Myrtle Beach, representing approximately $58 million in infrastructure investment and strengthening the region’s technology and data connectivity.

• 2024: Tidelands Health announced continued expansion of healthcare services and facilities across Horry and Georgetown counties to support the region’s rapidly growing population.

• 2023: Coastal Carolina University and HTC expanded technology and workforce development initiatives supporting growth in the region’s technology and telecommunications sectors.

• 2023: Horry County continued to experience strong employment growth driven by healthcare, retail, construction, and tourism-related industries.

• 2023: Myrtle Beach Regional Economic Development Corporation reported multiple new business recruitment and expansion projects supporting continued job growth across Horry County.

Barefoot Landing

Top Golf

INVESTMENT STRATEGY

Debt Advantage

The acquisition benefits from an assumable fixed rate loan that provides interest rate stability and reduces exposure to rising borrowing costs.

Encore at Murrells Inlet benefits from an attractive financing structure through the assumption of the existing fixed rate loan on the property. This approach allows the investment to maintain predictable borrowing costs and avoid the volatility that has impacted many multifamily investments financed with floating-rate debt. By locking in long-term financing at a fixed rate, the investment is positioned to provide greater stability during periods of interest rate uncertainty.

In recent years, rising interest rates have placed significant pressure on multifamily assets with variable rate loans, increasing debt service costs and reducing cash flow. By assuming an existing fixed rate loan, the investment is positioned to maintain stable financing costs throughout the hold period while preserving cash flow for investors. This structure helps protect operating performance and reduces the risk associated with future interest rate fluctuations.

DEBT FINANCING

Investment Rationale

Encore at Murrells Inlet offers a combination of operational advantages limited housing supply and stable rental demand within the Myrtle Beach market.

The property is located within 30 minutes from key members of ownership and regional property management team. This proximity allows for active operational oversight and responsive management throughout the hold period.

Murrells Inlet and the South Strand submarket have experienced strong population growth while maintaining relatively limited new multifamily construction. This supply imbalance continues to support stable occupancy and rental demand. SUPPLY CONSTRAINED SUBMARKET

Encore at Murrells Inlet offers townhome-style units that provide residents with more space privacy and functionality compared to traditional apartments. This housing style typically results in longer resident tenure and lower turnover.

The investment strategy focuses on retaining the existing resident base while implementing modest rent increases over time. This approach supports steady income growth while minimizing disruption to occupancy levels.

STICKY RESIDENT BASE

APPENDIX

Pro Forma Projections

Vertically Integrated Management

OWNER-OPERATED APPROACH

Properties are managed with the mindset of ownership, aligning operational decisions with long-term investment performance.

Solure Group provides in-house property management focused on operational efficiency and resident experience.

Solure Group will assume property management of Encore at Murrells Inlet, providing a vertically integrated approach to operations and oversight. As an owner-operated platform, Solure brings a hands-on management style that prioritizes both operational performance and the resident experience.

The team manages communities with the perspective of ownership, focusing on efficient operations, responsive service, and well-maintained properties. This approach is designed to support long-term asset performance while creating an environment residents are proud to call home.

HANDS-ON LOCAL OVERSIGHT

A dedicated team provides active management with a focus on responsiveness and attention to detail.

RESIDENT

EXPERIENCE FOCUS

Operations are designed to create communities residents are proud to call home through service, maintenance, and care.

OPERATIONAL EFFICIENCY

Processes and systems are built to streamline operations and support consistent property performance.

Integrated management allows for greater control, faster decisionmaking, and alignment with investment objectives.

Class A Returns

Below is a sample return based on a $100,000 investment as a Limited Partner:

LP RETURNS BASED ON $100,000 INVESTMENT

INVESTOR RETURNS BASED ON $100,000 INVESTMENT - CLASS A

Limited Partner

Sensitivity Range

*Excludes proceeds from sale, **Includes proceeds from sale

Below is a sample return based on a $250,000 investment as a Limited Partner:

LP RETURNS BASED ON $250,000 INVESTMENT

INVESTOR RETURNS BASED ON $100,000 INVESTMENT - CLASS A

Limited Partner

Sensitivity Range

RETURN SUMMARY

*Excludes proceeds from sale, **Includes proceeds from sale

Class C Returns

Below is a sample return based on a $500,000 investment as a Limited Partner: INVESTOR RETURNS BASED ON $100,000 INVESTMENT -

LP RETURNS BASED ON $500,000 INVESTMENT

RETURN SUMMARY

*Excludes proceeds from sale, **Includes proceeds from sale

Assets Under Management

PassiveInvesting.com is a private equity real estate investment firm focused on building passive income and equity for its investors through risk-adjusted real estate investments in the hottest real estate markets in the United States.

In 2018, the managing partners, Dan Handford and Danny Randazzo joined forces and have since then acquired over $2 Billion in real estate assets. Currently, the portfolio consists of $1.2 Billion AUM in 5 different asset classes and just over 1,800 investors active in those assets.

PassiveInvesting.com currently manages and is actively acquiring the following asset types: multifamily, car wash, self-storage and hotel. In addition, Rehab Wallet is the private lending arm of the company: funding fix and flips and providing bridge loans to customers across the United States.