IMH — 4800 Lofts Apartment Development by twh1031

4800 LOFTS

371-UNIT MULTIFAMILY PROJECT MURRAY, UTAH

PROJECT INVESTMENT SUMMARY

4800 LOFTS EXECUTIVE SUMMARY

4800 Lofts is a 371-unit multifamily project under construction in a high visibility location in Murray, Utah, approximately 10 minutes south of Salt Lake City. IMH is accepting additional investors into 4800 Lofts. Each $100,000 investment will earn a 12%* priority return, paid quarterly over the life of the investment and a 0.55% share of IMH’s profit at the time of sale. The investor’s projected multiple on investment capital (MOIC) is 2.2x with a 25% IRR.

§ 4800 Lofts was acquired and assembled by IMH over two years (from two different sellers), received final City approvals in June 2022 and development is underway. § In July 2022 IMH fully capitalized the vertical construction utilizing financing from Bank OZK and an institutional LP partner. § IMH has a fully executed Gross Max Price (GMP) contract with Pentalon, the premier Salt Lake General Contractor specializing in multifamily projects (48 projects / 7,000 units over 20 years). § The project consists of four buildings with 371 apartment units plus community amenities and a free-standing retail building.

Units

371 (market rate)

Location

Murray, UT

Total Project Cost

$119,600,000

Untrended Yield-on-Cost

5.9%

Trended Yield-on-Cost

6.9%

Construction Type

Podium (5 over 2)

General Contract

Pentalon

Architect

Beecher Walker

Amenities

Fitness, Lounge, Pool

Parking

458 (1.2x ratio)

Land Acquisition Date

Aug 2021

Final Approval Date

June 2022

Construction Start

Sept 2022

Project Completion

Q2 2025

*Investments made before or on 12/31/23 will receive a 12% priority return, investments made after will receive our standard 9%.

PROJECT PROFORMA & WATERFALL PROJECT PROFORMA Annual Cash Flows

TOTAL

Land Acquisition Development Fees Horizontal / Land Costs Vertical / Construct Costs Soft Costs

$ $ $ $ $

(8,462) (2,000) (91,726) (10,399)

$ $ $ $ $

(8,462) (81) (1,407) (1,842)

$ $ (967) $ $ (42,324) $ (5,181)

$ $ $ $ $

Finance Costs

(7,013)

$ $ $ $ $

(132) (2,055) (1,087)

$ $ $ $ $

Total Development Costs $ (119,599) Plus: Property NOI $ 21,007 Less: Non-Operating Expense $ (774) Plus Net Sales Price $ 171,450 Total Unlevered FCF $ 72,083

$ (18,805) $ $ $ $ (18,805)

$ (48,473) $ $ $ $ (48,473)

$ $ $ $ $

(49,047) 780 (41) (48,308)

$ $ $ $ $

(3,274) 4,536 (203) 1,059

$ $ $ $ $

7,697 (261) 7,435

$ $ $ $ $

7,993 (268) 171,450 179,175

Funding Debt Service

$ $

68,523 (531)

$ $

16,202 -

$ $

49,047 -

$ $

3,274 (531)

$ $

Repayment

(68,523)

$ (68,523)

Less: Construction Loan

(531)

16,202

49,047

$ (65,780)

Funding Debt Service Repayment

$ $ $

87,666 (11,010) (87,666)

$ $ $

87,666 (2,235) -

$ $ $

(4,412) -

$ $ $

(4,363) (87,666)

Less: Refi Loan

(11,010)

85,431

(4,412)

(92,030)

Common Outflow

(51,077)

$ (18,805)

$ (32,272)

Total Inflow

111,618

739

20,710

3,023

87,146

Net Project Profit

60,542

$ (18,805)

739

20,710

3,023

87,146

(820) (45,939) (2,288)

$ (32,272)

*000s omitted.

WATERFALL Investor Cash Flow & Return Metrics

Project Level Profit Calculation Sales Price

Investor Capital @ Close

(100,000)

Priority Return - Year 1 (12.0%)

12,000

171,450,000

Priority Return - Year 2

12,000

(119,599,000)

Priority Return - Year 3

12,000

188,467

124,467

174,061,000

Less: Selling Costs

(2,611,000)

Net Sales Proceeds

Less: Total Project Cost

Add: NOI (net)

8,691,000

Year 4 Sales Proceeds:

Net Project Profit

60,542,000

Return of Investment

100,000

Institutional LP Profit

46,639,000

Priority Return - Year 4

12,000

IMH Profit

13,903,000

Share of IMH Profits (0.55%)

76,467

Net Investor Profit Investor IRR

25%

Investor MOIC

2.2x

FEATURES AND AMENITIES 4800 Lofts will be the crown jewel of Murray City with creatively designed podium and rooftop level amenities that build a connection with the community. This Class A multifamily community is designed with luxury in mind. From the sparkling pools to the stylish rooftop lounges to the inviting meeting areas, 4800 Lofts will attract working professionals and millennials.

ROOFTOP LOUNGES

LUXURY POOLS

METRO AREA & MAP

4800 LOFTS

MURRAY – SALT LAKE COUNTY, UTAH § Murray is a city situated on the Wasatch Front in the core of Salt Lake Valley. Known for its central location in Salt Lake County, Murray has been called the Hub of Salt Lake County. § Murray City provides the solid foundation upon which great businesses thrive. With a diverse and stable economy, excellent transportation amenities, an extremely well-educated workforce, and cost-effective services for the residents and commercial businesses, Murray City is an ideal setting for success. § Murray is home to the Intermountain Medical Center, a medical campus that is also Murray's largest employer.

2nd LOWEST UNEMPLOYMENT RATE IN US Salt Lake City has the 2nd lowest unemployment rate in the US (at 2.1%) and has experienced consistently positive wage growth over the past 30+ years (excluding the 20092010 GFC).

TOP 20 US CITIES WITH LOWEST UNEMPLOYMENT

SOURCE: Statista July 2022

SALT LAKE CITY MACROECONOMIC DATA

2nd HIGHEST MILLENNIAL POPULATION IN US Salt Lake City has the 2nd highest Millennial population in the US (39%), with the Millennial population forecasted to increase at 5-6% per annum through 2025. US Cities With Highest Millenial Populations Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

City Madis on, WI Salt Lake City, UT Minneapolis , MN S eattle, WA Fargo, ND Columbus , OH Aus tin, TX Cincinnati, OH Nas hville, TN S t. P aul, MN S t. Louis , MO Lincoln, NE S an Francis co, CA Raleigh, NC Reno, NV Kans as City, MO Indianapolis , IN Des Moines , IA Chattanooga, TN Oklahoma City, OK Omaha, NE S ioux Falls , S D Tuls a, OK S an Jos e, CA Louis ville, KY

% of Population (20-34 yrs) 40.4% 38.8% 38.6% 38.6% 37.6% 36.6% 36.2% 34.7% 34.4% 33.1% 32.9% 32.8% 32.5% 31.8% 31.6% 31.3% 30.7% 30.6% 30.3% 29.6% 29.3% 28.6% 28.5% 27.7% 26.6%

Employment City Income Per Rate Unemployment Capita (20-34 yrs) Rate 86% 85% 84% 83% 87% 81% 81% 77% 83% 82% 80% 84% 84% 79% 85% 83% 77% 82% 84% 76% 80% 89% 78% 80% 77%

1.40% 1.40% 2.20% 3.20% 1.80% 3.00% 3.20% 3.00% 2.60% 2.20% 2.90% 1.10% 3.80% 2.80% 2.90% 2.70% 2.00% 2.60% 2.70% 1.70% 1.50% 1.80% 2.00% 3.20% 3.00%

$64,280 $58,008 $67,214 $80,420 $58,158 $56,252 $64,913 $59,607 $62,076 $67,214 $60,844 $53,057 $111,050 $60,884 $66,075 $58,057 $60,431 $58,076 $49,865 $52,688 $61,040 $67,117 $58,071 $121,619 $55,676

Housing Cost as % of income 23% 24% 22% 28% 17% 22% 27% 17% 23% 21% 17% 21% 23% 24% 22% 21% 18% 20% 21% 21% 21% 17% 18% 23% 20%

Cost of Living Index 97 97.7 103.2 112 94 94.2 101.8 93.5 97 103.2 95.7 93.8 117.4 95.7 98.9 94.7 94.7 94.9 92 93.8 95.3 94.1 92.9 112.1 91.9

# of "Fun" Businesses (2) 1,569 2,563 3,275 7,091 497 3,052 3,537 2,119 2,719 1,289 2,337 777 4,550 2,719 1,240 1,668 2,285 1,214 957 2,104 1,574 603 1,765 4,965 1,924

(1) Source: PolicyGenius - January 24, 2022 (2) "Fun Businsess" include including b ars, restaurants, and other entertainment venues

RENT VS. BUY: 2x LESS EXPENSIVE TO RENT Renting is ~2x less expensive than buying in Salt Lake City, which has created significant tailwinds for both SFR/BFR and traditional multifamily apartments in the market. Renting is the easy and economic choice for renters, particularly Millennials, in SLC.

1.8x

2.3x

9th HIGHEST RENT GROWTH IN US Through July 2022 Salt Lake City had the 9th highest year-over-year rent growth in the US.

YARDI MATRIX - JULY 2022 Top 20 Y/o/Y Rent Growth Markets in US 25% 16.20%

20%

15%

10%

Orlando

Miami Metro

Orange County

Raleigh

Tampa

Nashville

NC Triad

Salt Lake City

Dallas-Ft Worth

Charlotte

Seattle

Tucson

El Paso

Las Vegas

Indianapolis

Inland Empire

Austin

Indianapolis

Albuquerque

SW Florida

SOURCE: Yardi Matrix National Multifamily Report July 2022

CONFIDENTIALITY & DISCLAIMER This confidential investment memorandum (“memorandum”), including the attached exhibits contains confidential, non-public and proprietary information. The company provides the memorandum solely for confidential use by prospective investors. Without prior written permission from the company, prospective investors shall not release, copy, discuss or use the memorandum for any purpose other than evaluating whether to invest in the company. Each recipient agrees to return the memorandum and any other documents or information furnished by the company if the recipient declines to invest. The memorandum was prepared from information provided by the company. The company’s professional advisors did not independently verify any information contained in the memorandum or otherwise made available by the company, and therefore they do not represent or warrant the accuracy or completeness of such information. The company has not authorized any offering literature or advertising other than the memorandum. No one is authorized to provide any other information or to make any representation except those contained in the memorandum. Do not rely on any information or representation that does not appear in the memorandum. Prospective investors must rely on their own examination of the company, its proposed business and this offering, including the merits and risks involved. Prospective investors should carefully evaluate the “risk factors” described in this memorandum or in the subscription agreement. The memorandum does not offer investment, tax or legal advice to prospective investors. Prospective investors should consult their own counsel, accountant or investment advisor about the legal, tax and related implications of investing in the company. Prospective investors may ask questions and receive answers about the offering, the company or any other relevant matters. 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None of the information or analyses presented are intended to form the basis for any investment decision, and no specific recommendations are intended. Accordingly, this memorandum does not constitute investment advice or counsel or solicitation for investment in any security. This memorandum does not constitute or form part of, and should not be construed as, any offer for sale or subscription of, or any invitation to offer to buy or subscribe for, any securities, nor should it or any part of it form the basis of, or be relied on in any connection with, any contract or commitment whatsoever. The company expressly disclaims any and all responsibility for any direct or consequential loss or damage of any kind whatsoever arising directly or indirectly from: (i) reliance on any information contained in the memorandum, (ii) any error, omission or inaccuracy in any such information or (iii) any action resulting therefrom. 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