College Street Project Iowa City

Iowa City College Street Project Investor Presentation

info@thetailwindgroup.com

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www.thetailwindgroup.com

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507.322.1200

property overview

Tailwind Group is pleased to present an investment opportunity in our newest project within the University of Iowa market “THE NEST”. This project consists of a restoration of six existing buildings located directly on the PED mall designated as landmark historic status complimented with the addition of a newly constructed 11 story residential building. Given the historical growth of the Iowa City market and university along with projections supporting continued growth, the supply and demand conditions should be favorable for this future development.

• Core “A+” location • LEED Silver design • TIF, Historic Preservation & Non-Profit • Refurbishment of historic buildings • New-construction of vertical tower (11 stories)

ADDRESS

109 - 127 College Street, Iowa City IA

UNIVERSITY

University of Iowa

YEAR BUILT

2022

UNITS / BEDS

96 / 184

CURRENT OCCUPANCY

N/A

AVERAGE $ / BED

$1,213

DISTANCE TO CAMPUS

0.10 Miles

INVESTMENT HIGHLIGHTS Waterfall • Preferred Return: 8% • Split on Net Proceeds: 80% to LP

Financial Highlights • Forecasted Total ROI: 12% - 13% • Forecasted Avg Annual ROI: 7%

UNIT MIX UNIT COUNT

BED COUNT

SF / UNIT

1 Bedroom

24

24

350

2 Bedroom

56

112

650

3 Bedroom

16

48

1,078

TOTAL/AVG

96

184

700

FLOORPLAN

COLLEGE STREET PROJECT

property description Tailwind Group’s rich background in commercial, retail and residential sectors makes it uniquely qualified to contribute an appropriate, lasting, and sustainable environment to downtown Iowa City. The team plans to develop a mixed-use commercial and residential project on the south side of the Ped Mall from 109 E College St to 127 E College St. The proposed project includes sensitive refurbishment of brick masonry buildings along the Ped Mall and the addition of a new building behind them, along the alley.

COMMERCIAL The three original buildings that comprise the project site are known as the Dooley Block, the Crescent Block, and the College Block. The project will re-activate over 11,400-sf of vacant space on the basement, first, and second floors of the Dooley Block as well as 9,250-sf of vacant space on the second and third floors of the Crescent Block.

Targeted uses include: • Redeveloped space will include clubhouse/amenity space for housing development • Redeveloped space for retail including bars, restaurants and clothing • Redeveloped space for the local arts non-profit organization tenant.

• Redeveloped space for additional housing

In addition, the College Block has been granted landmark status. Tailwind Group has committed to working with the City to also designate the Crescent Block and the Dooley Block ‘Local Historic Landmarks,’ assuring the buildings’ longevity and maintaining Iowa City’s rich history.

VERTICAL The new building will provide 9 floors of residential units and 2 levels of structured parking. Its height will coordinate with that of the nearby Graduate Hotel. Tailwind is utilizing weathered steel for the exterior finish which forms a textured oxide surface film on the panel and as time passes, and the panel is exposed to the different weather elements like rain or snow, it begins rusting into a unique patina-like color. Weathering steel is extremely resistant to corrosion caused by weather and other atmospheric conditions. We believe this unique look will enhance the historic feel of the commercial development.

MARKET OVERVIEW

The subject property is located in Iowa City (population 67,862) in the county of Johnson, the county seat. The community of Coralville is adjacent to Iowa City and is considered the general market area. This area is a dynamic regional trade center with thriving business and world-class medical facilities and a highly educated work force.

The region has been recognized in national publications numerous times for business, education and quality of life. The University of Iowa has been a critical factor in these awards, and is a driver in the growth and success of the city.

COLLEGE OVERVIEW

The University Iowa is a NCAA Division I university in the Big10 Conference. The campus spans 1,700 acres along the banks of the Iowa River. The University of Iowa continues to invest in the facilities, adding a first class football operations facility completed in Spring 2015(cost $35 Million); Art Building complex totaling 126,000 SF to be completed in mid-2016 (cost $77 million); Hancher Art / Music building to be completed in Summer 2016 (Cost $176 Million); PappaJohn Biomedical Discovery Building completed in summer 2014 (Cost $130 Million); and the University of Iowa Children’s Hospital to be completed in Mid-2016 – including parking facility – building totaling 480,000 SF (cost $357 Million). The University is well respected in virtually all areas of study and is highly regarded throughout the Midwest and Nationally.

HOUSING: (PER REAL PAGE)

Enrollment growth at the University of Iowa is projected to remain moderate during the outlook period, averaging over 1% growth and growing to over 33,000 students by 2022. The Private Student housing stock has limited supply forecasted in the future and the occupancy outlook is to remain near 100%. Rent growth is forecasted to be approximately 1.50% - to 2.00% through 2024.

YEAR

2017

2018

2019F

2020F

2021F

2022F

Enrollment

32,166

31,656

31,524

31,675

32,535

33,115

Ocupancy

96.5%

97.6%

97%

97.5%

98.1%

98.2%

Rent Growth

1.1%

1.5%

1.8%

1.4%

1.8%

1.2%

Waterfall Summary

IOWA CITY STUDENT HOUSING PROJECT

NO.

Limited Partner Equity Target

$5 – 7 million

General Partner Equity

$2.5 million

Close Target

August 15, 2020

Preferred return Rate

8.0%

Accrual

Yes, annual accrual

First Pay

4th Quarter 2022

Pay Frequency

Monthly

Cash Distribution Payout Rate

7.0% - 11% annual

SHORT DESC.

1.

8.0% Accrued Return – Limited Partners

2.

8.0% Accrued return - General Partners

DETAIL Limited partners in proportion to their unreturned capital; accrued but undistributed cumulative non-compounding preferred return (8.0%. ) Upon catch up of limited partners accrual, 8.0% catch up to GP accrual.

DISTRIBUTION OF NET CAPITAL PROCEEDS (SALE EVENT) NO.

SHORT DESC.

DETAIL

1.

8.0% unpaid accrued return – Limited Partners

Limited Partners in proportion to their unreturned capital; accrued but undistributed cumulative non-compounding preferred return

2.

8.0% unpaid accrued return – General Partners

General Partners in proportion to their unreturned capital; accrued but undistributed cumulative non-compounding preferred return

3.

Return of capital – Limited Partners

4.

Return of capital – General Partners

5.

Split on net proceeds – 80% to Limited Partners

Net proceeds equals: upon sale or refinance events, after payment of selling costs, debt, accruals and capital the net proceed split

General structure provides a priority return structure to limited partners with the sponsor subordinating returns and capital to the limited partner class for additional strength to the LP equity.

ASSUMPTIONS IMPORTANT INFORMATION ABOUT YOUR INVESTMENT The financial information contained herein is based on assumptions concerning future events, many of which are subject to significant uncertainties and contingencies beyond the control of Tailwind Group, the Company Manager. The degree of uncertainty inherent in the financial assumptions presented here increases with each subsequent year forecasted. Further, some of the following assumptions inevitably will not materialize and unanticipated events and circumstances may occur subsequent to the date of this forecast which would make the assumptions relied upon no longer reasonable. Therefore, the actual results achieved during the forecasted periods will vary from the projections presented here. The variations may material and they may be adverse. The financial forecast is included herein to assist prospective investors in analyzing the potential risks and benefits of an investment. This financial forecast is not a representation by anyone affiliated with Tailwind Group Inc. or anyone else affiliated with any of the mentioned entities that the Company will actually achieve the results set forth herein for the periods presented. Any such investment with the Company and Tailwind Group Inc. will entail some degree of risk, including risk of losing all principle invested.

DISCLAIMER The preferred units have not been, and are not intended to be registered. This summary is not an offer to sell or a solicitation of an offer to buy preferred units. An offer can only be made through the Offering Memorandum and accepted through a subscription, and only in states where such is permitted. The preferred units are offered through exemption from registration under federal and state securities laws. The Company may pay commissions to securities broker/dealers in connection with the Offering. Any offering that is conducted will be intended for Accredited Investors who understand the business, investment and tax risks associated with a purchase of preferred units, including the absence of a trading market and risk of loss of investment, and who intend to purchase preferred units as a long-term investment.

For more information about this opportunity and the preferred units, please contact: Michael Sather 530 S. Front St., Suite 100, Mankato, MN 56001 Telephone: 507-405-2805 E-mail: msather@thetailwindgroup.com Josh Sherburne 530 S. Front St., Suite 100, Mankato, MN 56001 Telephone: 612.387.5163

E-mail: jsherburne@thetailwindgroup.com

Tailwind - The Preeminent Firm in Student Housing Tailwind Group is a vertically integrated real estate company specializing in the acquisition, development, repositioning, and management of residential and commercial properties. We offer our investors the opportunity to invest in student housing with a targeted investment strategy comprised of periodic cash flows and long term capital appreciation. Tailwind Group is always seeking new and strategic investment opportunities focusing on the following: • Development of residential, student housing communities • Acquiring under-managed or under-performing student housing properties Setting new standards in the real estate industry, Tailwind Group has earned a stellar reputation for its dedication to the development and management of quality properties distinguished by functional design, gracious floor plans and first class amenities.

Tailwind has a history of meeting or exceeding investor expectations on all legacy properties.

With over 50 years of combined experience, Tailwind Group is focused on putting our clients’ interests first, delivering on our commitments and applying a keen understanding of real estate and risk management. Our emphasis on building and sustaining unique, amenity-rich developments creates a setting where property values exceed market trends and people understand the true meaning of community. We continue to strive to be the best in the industry in all that we do and provide our investors with competitive returns while protecting capital.

Michael Sather

CFO msather@thetailwindgroup.com (O) 507-405-2805 (C) 612-581-6061

Tailwind Historical Performance summary College/University

Year

Type

Total Beds

Total Cost

College Town

Minnesota State University, Mankato

2013

New Build

485

$23M

$28M

10%

The Quarters at Mankato

Minnesota State University, Mankato

2016

New Build

496

$28M

$30M

8.0%

The Quarters at Iowa City

University of Iowa

2016

Remodel

876

$61M

$75M

8.5%

The Quarters at Cedar Falls

University of Northern Iowa

2017

Remodel

480

$17M

$19M

8.0%

The Quarters at East Lansing

Michigan State University

2018

Remodel

385

$20M

$22M

8.0%

The Quarters at Ames

Iowa State University

2018

New Build

518

$33.5M

$38M

9.5%

The Quarters at West Lafayette

University of Purdue

2018

Remodel

653

$21M

$32M

8.0%

The Quarters at Laramie

University of Wyoming

2018

Remodel

481

$15M

$19M

12.0%

The Griff

Ohio State University

2018

Acquisition

586

$71M

$75M

8.0%

The Quarters of Vermillion

University of South Dakota

2018

New Build

496

$29M

$29M

8.0%

The Quarters Bloomington

Indiana University

2019

Acquisition

477

$43M

$43M

10%

Property Name / Investment

Total Value

Cash on Cash

Past Property Summary

MN SD

WY

MI IA IN

OH

OK AL

bed count 8,700

9,000

8,200

8,000 6,880

7,000 6,000 4,690

5,000 4,000 3,000 2,000

2,200 1,352

2,696

1,592

1,000 2013

2014

2015

2016

2017

2018

2019

2020