78 SHERIDAN 17 UNITS | , GA ()

Luxury Asset in Atlanta’s Most In-Demand Submarket OFFERING TERMS Property is offered on an all-cash basis.

TOUR DATES Available upon request.

DATA ACCESS

OFFERING PROCESS

Offers should be in the form of a Letter of Intent (LOI) and at minimum include: Price, Earnest Money, Due Diligence Time Period, and Closing Period.

DIRECTIONS FROM AIRPORT

Follow signs for I-85N/I-20/I-75N and merge onto I-85N; continue on I-75N/I-85N; keep right at the fork to continue on I-75N toward Marietta/Chattanooga; take exit 252A for US-41/Northside Dr.; turn right onto Northside Dr.; turn right onto W. Wesley Rd.; turn left onto Peachtree Rd.; turn right onto Sheridan Dr. TABLE OF CONTENTS

INVESTMENT SUMMARY / PG. 1

PROPERTY DESCRIPTION / PG. 23

LOCATION OVERVIEW / PG. 29

APARTMENT MARKET / PG. 37

FINANCIAL ANALYSIS / PG. 49 78 SHERIDAN

INVESTMENT SUMMARY

PEACHTREE ROAD

78 SHERIDAN

1 INVESTMENT SUMMARY OFFERING HIGHLIGHTS ATLANTA’S GROWTH CONTINUES The Multifamily Advisory Group is pleased to present the Atlanta, the economic capital of the Southeast and global exclusive listing of the 17- unit 78 Sheridan apartment business hub is one of the fastest growing metros, with 1 the 10th largest GDP in the U.S. community located in north metro Atlanta, Fulton County, . This asset is situated a walkable 0.14-miles east of DIRECT ACCESS TO NORTH ATL JOBS iconic Peachtree Road, within Atlanta’s top urban The subject is located in the Buckhead submarket, submarket posting the metro’s strongest rent growth. Built which offers a superlative central location and prime in 1965 this boutique Buckhead offering presents a rare 2 connectivity to Metro Atlanta’s 590K+ jobs. opportunity to invest in Atlanta’s most exclusive neighborhood. BUCKHEAD MARKET SURGING The cost to build in Buckhead has reached an all-time high, which has allowed existing properties to maximize 3 rents through value-add programs. This submarket offers 17.4M SF of top-dollar office space. 78 SHERIDAN DESIRABLE MICRO LOCATION Address 78 Sheridan Drive Atlanta, GA 30305 The subject’s proximity to high paying jobs has resulted County Fulton County in a 59% increase in average effective rent since 2010. 4 The average HHI within a three-mile radius is $129K. Number of Units 17 Units Year Built 1965 STRONG PROPERTY PERFORMANCE Rentable Area 17,544 SF 78 Sheridan has shown strong performance during the Avg. Unit Size 1,032 SF last 12 months with rental income, total income, and Site Size 0.39 Acres 5 average effective rent all increasing. Additionally, as of September the subject is 100% preleased. Avg. Market Rent $1,262 (09/10/18) Avg. Market Rent/SF $1.22 MARKET-PROVEN VALUE ADD Occupancy* 94.1% An investor can see additional upside by renovating all Preleased* 100% units to the “elite” level at an average cost of $12K/unit in * 09/10/18 6 order to achieve $352 premiums on average effective rent.

2 78 SHERIDAN

1. ATLANTA’S GROWTH CONTINUES 2. DIRECT ACCESS TO NORTH ATLANTA JOBS

Top state Moving Next big tech Openings business destination hubs still for STEM # climate # in the nation # affordable # graduates 1 - Site Selection 2017 1 - Penske, 2017 2 - Realtor.com, 2017 1 - WalletHub, 2017

RECENT METRO ATLANTA RANKINGS #1 #1 #1 Metro for 1 of 10 best cities in the for distribution remote workers nation for open jobs job postings - Forbes, 2017 - Glassdoor, 2017 - Site Selection Group, 2017

ECONOMIC CAPITAL OF THE SOUTHEAST & GLOBAL BUSINESS HUB 9th 10th Projected to be 3rd 4th largest MSA in the largest economy in 6th largest concentration North American metro U.S., boasting a the U.S., according most populated of FORTUNE 500 area for competitiveness population of to the U.S. Bureau of metro area by headquarters of any in the transportation & 5.5M+ people Economic Analysis 2020 U.S. city logistics industries

3 INVESTMENT SUMMARY 2. DIRECT ACCESS TO NORTH ATLANTA JOBS

CONNECTIVITY TO 590,000+ JOBS THROUGHOUT ATLANTA METRO Atlanta is winning key Fortune 500 firms, attracting fast-growing technology, and focusing on cutting-edge development. 78 Sheridan, located in the heart of Buckhead, benefits from its superlative location and offers excellent connectivity to major Atlanta job hubs. A proposed 8.8-mile light rail line will connect the Lindbergh MARTA station to the Avondale MARTA station, and offer additional commuting options.

N. FULTON/ALPHARETTA N. GWINNETT/SUGARLOAF (18M SF office / 89K jobs) #9 (5.4M SF office / 38K jobs) • Avalon Mixed-Use Development: 500K best place for • District at Duluth: $64M mixed-use SF retail destination; 105K SF office over business and project, two restaurants, 11 retail/office retail; Generating $26M annually in tax careers in U.S. fronts, 375 apartments; The Residential revenue Group; Complete by end of 2018 —Forbes, 2016

PLATINUM TRIANGLE (21.4M SF office / 125K jobs) (22.3M SF office / 125K jobs)

• New Braves Stadium & The Battery: • State Farm HQ: 2.2M SF 26-story tower; $622M Atlanta Braves stadium; $400M 8,000 jobs; 1.6M SF in future phases mixed-use ; 630K SF Class A office; 500K SF retail; 450 hotel rooms; 500 • Mercedes-Benz HQ: $93M 225K SF office; residences 1,000 jobs; $27M in incentives

INTERSTATE 85 285 MIDTOWN DORAVILLE (17.5M SF office / 100K jobs) 285 • Assembly Yards: Planned mixed-use development on former GM site to serve • NCR Headquarters: 3,600 employees #1 film industry and new MARTA rail stop; Ph. I plus 1,600 if they do Ph. II; destination in U.S. of cross- 270K SF office, 60K SF sound stages, 20K HQ previously in Gwinnett; $16M in SF production facilities incentives border capital in multifamily (past 12 months) and #2 • Techsquare: Coda: 2,400 permanent jobs; 620K SF office space; 40K SF (past 24 months) BUCKHEAD retail; 80K SF data center —RCA Analytics, Jan 2017 (17.4M SF office / 100K jobs)

“A surge in population and job growth in the Atlanta metro area • Three Alliance: 500K SF Class A 30-story DOWNTOWN during the next two decades will bode well for the multifamily office tower in heart of Buckhead; One of (14.9M SF office / 100K jobs) Buckhead’s last office parcels; Delivered sector. The job growth multiplier for the demand for new apartments late 2017 • New Falcons Stadium: $1.5B; retractable used to be five to one, meaning for every five jobs created, you • Emory-Hawks: Sports science practice and roof; 2M SF total space; 71,000 stadium could take one unit of inventory. This year and next in Atlanta, that seats; selected to host Super Bowl in sports-med facility for Atlanta Hawks; First ratio sits around seven to one.” 2019 of its kind; Opened in 2017. —Southeast Real Estate Business

4 GA | ATLANTA BUCKHEAD GEORGIA

ATLANTA

BUCKHEAD BUCKHEAD ATLANTA GA | ATLANTA BUCKHEAD GEORGIA CHAMBLEE

BROOKHAVEN ATLANTA

BUCKHEAD

CHAMBLEE

BROOKHAVEN 78 SHERIDAN

3. BUCKHEAD MARKET SURGING 400

EXCLUSIVE LOCATION Square footage in Buckhead is extremely limited. Land prices here will continue to rise, and development costs BROOKHAVEN are forcing higher densities. 141 MID-RISE ($240K/U) New construction is almost exclusively high-rise — indicated by UPTOWN the recent closing of Alliance Henri’s site in Buckhead Village: 1.1 BUCKHEAD acres for $15.2M to Alliance.

HIGH-RISE DEVELOPMENT TREND RELAYS INTO BUCKHEAD CORE SUCCESSFUL VALUE-ADD STRATEGIES HIGH-RISE ($350K/U) 19 ROXBORO The more mature multifamily assets in the increasingly high-rise PODIUM ($375K/U) submarkets, such as 78 Sheridan, Ansley Forest, COHO Atlanta, 13 and Uptown Buckhead, all have taken advantage of the higher rent ceilings and initiated aggressive value-add upgrades, while BUCKHEAD VILLAGE still remaining priced well under the new construction rents. HIGH-RISE ($350K/U)

78 SHERIDAN

COST TO BUILD (1,000S OF DOLLARS)

41 LINDBERGH Roxboro 350 MID-RISE ($250K/U)

Buckhead Village 350 PIEDMONT MID-RISE ($250K/U) CHESHIRE Buckhead Core 350 MID-RISE ($240K/U)

Lindbergh 250

Piedmont 250 23 Brookhaven 240 MORNINGSIDE MID-RISE ($240K/U) Morningside 240

Cheshire 240 = COST TO BUILD TODAY

100 150 200 250 300 350 400

5 INVESTMENT SUMMARY BUCKHEAD MARKET INDICATORS • Metro’s highest average class A rent ($35.37/SF) and lowest vacancy (16.5%). • 14M SF Class A office market includes financial, real estate, law, and IT firms. Atlanta’s hottest new office, 500K SF Three Alliance, delivered in early 2017. • New core Buckhead apartment construction, fueled by Millennials, commands metro’s highest average rent ($2,075). • Significant apartment rent growth in 2016 (18.5%) is pushing renters to core- located alternatives like 78 Sheridan. • Three , Buckhead’s newest trophy tower, has topped out and welcomed its first occupants in May 2017.

BUCKHEAD OFFICE SUBMARKET

$33.00 30.00% 27.00% $32.00 32% Office Rent Growth 24.00% $31.00 Over Five Years 21.00% $30.00 18.00% $29.00 15.00% $28.00 12.00% 9.00% $27.00 6.00% $26.00 3.00% $25.00 0.00% 2014 Q3 2015 Q3 2016 Q3 2017 Q3

PSF Rent Overall Vacancy

1.5M SF 612K SF Class A office delivered since 2010: Class A office delivered since 2017: Phipps Tower, 3630 Peachtree, The Shops of Buckhead (SPANX) Three Alliance, The 309

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The Shops Buckhead Atlanta

Buckhead

78 SHERIDAN

7 INVESTMENT SUMMARY Terminus

One Buckhead Plaza

Lenox Square Mall

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4. DESIRABLE MICRO LOCATION

1 BUCKHEAD CBD 6 LINDBERGH PLACE • Ninth wealthiest zip code in the DEVELOPMENT country • High density mixed-use site being developed by Fuqua • 23M SF of office space 10 • 225 Townhomes • 3M SF of retail 9 • 5K hotel rooms • 250K SF of retail (Kroger) • 300+ restaurants 1 • Three-acre urban park 7 BUCKHEAD PLAZA 2 PEACHTREE HILLS • Features two class A office buildings PLACE (U/C) totaling 671K SF • 20-acre upscale retirement complex 3 • Includes Ovation condos and St. 7 • Units starting at $700K and selling for 8 Regis Hotel as much as $2M • Restaurants include King & Duke, • Includes 85 condos and eight single- Seasons 52, Chops, and Umi family homes 4 8 THE SHOPS BUCKHEAD 3 THE CHARLES (U/C) ATLANTA • 57 condo units • 300K+ SF of upscale retail • Units starting at $1.3M and selling for • 100K SF luxury office up to $4M • 400K SF high-rise residential • Condos average 2,900 SF 5 6 9 LENOX MALL & PHIPPS 4 BRAND PROPERTIES OFFICE AND RETAIL PLAZA (PROPOSED) • Top two high-end shopping 2 destinations in the Southeast • Nine stories office and boutique retail with six-story parking deck • 1.5M SF Lenox Mall anchored by Macy’s, Bloomingdale’s, Neiman • Replaces iconic Garden Hills Marcus Shopping Center • 825K SF Phipps Plaza anchored by • Adjacent to planned renovation of Nordstrom, Belk, Saks Fifth Avenue, Buckhead Fellini’s Pizza and AMC Theatres The Charles The Emerson 5 THE EMERSON (U/C) 10 PIEDMONT CENTER • 44 condo units • One of Atlanta’s premier office parks • 21 stories • 15 office buildings totaling 2.1M SF • Condos will start at $2M • 52 total acres • Penthouse is under contract for $6M+, one of the most expensive condo pre- sales in Atlanta history

9 INVESTMENT SUMMARY MIDTOWN (14.9M SF OFFICE, 100K JOBS) (17.5M SF OFFICE, 100K JOBS)

Y T R E P O R P BUCKHEAD M O (17.4M SF OFFICE, 100K JOBS) R F

S E L 4 I 3 M

5

78 SHERIDAN

2 1

D A O R

E E R T H C A E P

RETAIL

1. The Peach Shopping Center: Starbucks, 2. Walgreens Planet Smoothie, Barnes & Noble, , 3. Fellini’s Pizza Party City, Restaurants 4. Peachtree Road Farmers Market

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4. DESIRABLE MICRO LOCATION (CONTINUED)

EXCELLENT CONNECTIVITY TO TOP-RANKED JOB EXCEPTIONAL PROXIMITY TO EMPLOYMENT CENTERS EMPLOYMENT ZONE DISTANCE FROM SUBJECT TOTAL JOBS

78 Sheridan’s location offers direct access to Atlanta’s most prolific Buckhead French Quarter embedded within 100,000+ employment centers, including Buckhead, Emory/Clifton Corridor Midtown 2.5 miles 100,000+

Midtown, Downtown, and Perimeter Center. Clifton Corridor 3 miles 40,000

Downtown 5 miles 100,000+

BUCKHEAD HAS SOUTHEAST’S HIGHEST PROFILE Central Perimeter 5 miles 125,000 78 Sheridan is embedded in Atlanta’s best growth story — Buckhead — and has unmatched access to all of Atlanta’s major employment hubs. BUCKHEAD SKYLINE • Embedded in the Southeast’s highest profile; highest rents; high-end business district • Situated amidst Buckhead’s trophy office and retail • 78 Sheridan also offers back-door access to ’s 40,000 “Meds & Eds” jobs • Anchor office tenants of Buckhead include Spanx, SunTrust, Greenberg Traurig, Kaiser Permanente, BlueCross BlueShield, Novelis, Merrill Lynch, UBS, CoStar, Wells Fargo, and Morgan Stanley among others.

EMORY UNIVERSITY

ATLANTA JOB MARKET FLEXING • Metro Atlanta ranked as the #2 metro for year-over-year percentage job growth from 2015 to 2016 • It is projected Atlanta will rank third in the country in terms of job growth from 2016 through 2020, reflecting 10% total growth • Metro Atlanta’s non-farm employment grew by 2.0% in 2016, well ahead of the U.S. average of 1.2% during the same period • According to WalletHub, Atlanta ranks among the top markets for STEM (science, technology, engineering and math) professionals and is third in STEM employment growth

11 INVESTMENT SUMMARY PERIMETER CENTER 8 (22.3M SF OFFICE, 125K JOBS)

3

BUCKHEAD (17.4M SF OFFICE, 100K JOBS) 2 7 1

4

5

6

78 SHERIDAN

RETAIL POINTS OF INTEREST

1. Buckhead Crossing Shopping 3. Mall (1.5M SF w/ 4. Atlanta International School 7. Frankie Allen Park Center: Starbucks, Ross, Marshalls. anchors Bloomingdale’s Neiman 5. Garden Hills Elementary School 8. DeKalb-Peachtree Airport 2. Shops of Miami Circle (Boutiques, Marcus, Macy’s), Retail District, and 6. Garden Hills Park Restaurants) Lenox MARTA Transit Station

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4. DESIRABLE MICRO LOCATION (CONTINUED)

STRONG DEMOGRAPHICS DRIVE BUCKHEAD DEMOGRAPHICS SUMMARY RENT GROWTH ONE-MILE THREE-MILE FIVE-MILE Within a three-mile radius of 78 Sheridan, Average HH Income $126,594 $129,351 $119,623 average effective rent has increased by 59% Expected Income Growth by 2022 23.9% 20.5% 18.3% % of Pop. with College Education 88.3% 86.5% 83.1% since 2010. White Collar Employment 84.9% 82.1% 80.3% This rapid growth has been sparked by an affluent % of Population Between the Ages 20-35 30.6% 33.7% 34.8% demographic base where the majority of the population is employed in a white-collar capacity. The average household income within a three-mile radius is $129,351 and is expected to grow by 20.5% through 2022.

Buckhead has seen a surge in rent growth with average effective rent reaching $1.63/SF in 2018. 78 Sheridan’s rents can be pushed to compete in this high-growth submarket.

Homes selling for up to $1.4M within Homes selling for up to $3M within 0.1 miles of subject 0.3 miles of subject

BUCKHEAD SUBMARKET EFFECTIVE RENT VS. VACANCY

11.00% $1,605 59% $1,505 8.00% Effective Rent $1,405 Growth 2010-2018 $1,305 5.00%

$1,205 2.00% $1,105 Vacancy Rate $1.63/ft

Average Effective Rent $1,005 -1.00% Average Effective 2005 2007 2009 2011 2013 2015 2017 Rent per SF Effective Rent Overall Vacancy

13 INVESTMENT SUMMARY 4

7 LINDBERGH

5 6 10

3 BUCKHEAD (17.4M SF OFFICE, 100K JOBS) 8 9

78 SHERIDAN

P E A 2 C H T R E E 1 R O A D

E DRIV DAN SHERI

RETAIL POINTS OF INTEREST

1. The Peach Shopping Center: Starbucks, 4. Lenox Square Mall (1.5M SF w/anchors 6. Lindbergh Plaza Shopping Center: Chick- 8. Atlanta International School Barnes & Noble, Publix, Party City, Bloomingdale’s Neiman Marcus, Macy’s), fil-A, The Home Depot, Best Buy, The 9. Garden Hills Elementary School Restaurants Retail District, and Lenox MARTA Transit Dump Furniture Outlet 10. Frankie Allen Park 2. Walgreens Station 7. Shops of Miami Circle (Boutiques, 3. The Shops at Buckhead: Christian 5. Buckhead Crossing Shopping Center: Restaurants) Louboutin, Tom Ford Atlanta, Atlanta Starbucks, Ross, Marshalls. Fish Market, Bella Bag, Fado Irish Pub, L’Occitan Buckhead, The Capital Grill

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5. STRONG PROPERTY PERFORMANCE 6. MARKET-PROVEN VALUE ADD

ASSET ARRIVES WITH EXCELLENT FUNDAMENTALS 78 Sheridan has performed exceptionally well during the last 12 months, with total collections and rental collections enjoying significant and ongoing increases. In addition to improved income, the subject is 100% preleased as of September 2018.

T12 RENTAL INCOME T12 TOTAL INCOME

$16,500 $19,000

$16,000 $18,000

$15,500 $17,000 $15,000 $16,000 $14,500 $15,000 $14,000 Income Total Rental Income Rental

$13,500 $14,000

$13,000 $13,000 Trailing 12 Trailing 6 Trailing 3 Jul-18 Trailing 12 Trailing 6 Trailing 3 Jul-18 Months Months Months Months Months Months

UNIT RENOVATION BREAKDOWN

23.53%23.53% ELITE Classic Units 52.94% Renovated Units CLASSIC 23.53% 52.94% Elite Renovated Units RENOVATED 23.53%

15 INVESTMENT SUMMARY 6. MARKET-PROVEN VALUE ADD

DEMONSTRABLE VALUE ADD IN SUBMARKET 78 SHERIDAN CURRENT “CLASSIC” KITCHEN The current value-add program consists of four “elite” upgraded units, four “renovated” units and nine “classic” units. With proven demand for high-end finishes in the submarket and ample room to push rents relative to competitors, 78 Sheridan presents an excellent value-add opportunity.

Upgrading nine “classic” units and four “renovated” to the “elite” unit level, which includes granite countertops, modern hardware, contemporary lighting, vinyl flooring, new cabinet fronts, tile backsplash and stainless steel appliances can generate an average effective rent premium of $352. These upgrades can be accomplished at an average cost of $12K/unit.

AVERAGE EFFECTIVE RENT COMPARISON

$1,800 $1,700 $352 $1,600

t proposed

Ren effective rent

tive $1,500 78 SHERIDAN CURRENT “ELITE” KITCHEN ec f f premium $1,400 erage E v A $1,300

$1,200

$1,100

$1,000 3 2 0 3 68 25 04 30 4 59 300 07 7 7 17 ,295 ,5 ,58 , 1, 1 $ $1 $1, $1, $1 $1 $1, $1, $1, $ $900 The Park at 78 Sheridan (In- Peachtree Hills Mathieson House Market Average 78 Sheridan The Aster CoHo Atlanta Elle of Buckhead Ansley Forest Peachtree Hills Place) Court (Value-Add) Buckhead

$12K 34% $295 Cost of upgrading a Return on Average subject’s “classic or renovated” investment effective rents trail comps

16 78 SHERIDAN

6. MARKET-PROVEN VALUE ADD (CONTINUED)

CLASSIC KITCHEN

17 INVESTMENT SUMMARY ELITE KITCHEN UPGRADE

18 78 SHERIDAN

6. MARKET-PROVEN VALUE ADD (CONTINUED)

SIGNIFICANT EXTERIOR IMPROVEMENTS Unrenovated Window Current ownership has done a full renovation on the 78 Sheridan exteriors, which has allowed the subject to reposition within the submarket. Despite the extensive work done to the exteriors of the property, a new owner can further elevate this asset by improving amenities.

AMENITY/SITE VALUE ADD

The subject has an extensive amount of exterior improvements including painting brick exteriors, repairing iron work, painting exterior doors, installing wood/metal decorative facade and double pane slider windows in all “elite” units. The current owner has enough double pane slider windows to install in all units, but is waiting to install them as units turnover. The new owner will receive the full inventory along with the acquisition.

A new owner can continue the exterior renovation program by adding a small dog park, greenery in the exterior hallways, Amazon lockers behind Double Pane Slider Windows the building and completing the windows installs as turned.

KEY EXTERIOR/SITE UPGRADES COMPLETED: • Painted Exteriors • Installed Wood/Metal Facade • Repaired Iron Fencing • New Windows on “elite” units • Painted Exterior Doors

KEY ENVISIONED EXTERIOR/SITE UPGRADES: • Create Small Dog Park • Install Amazon Lockers • Install Greenery in Exterior • Finish Window Install as Units Hallways Turn

19 INVESTMENT SUMMARY AMENITIES PRESENT SIGNIFICANT UPSIDE OPPORTUNITY The property can further reposition itself within the submarket by improving upon its existing amenities and adding new paint to the exteriors.

INSTALL AMAZON LOCKERS

Amazon lockers can be easily installed on either side of the subject’s exterior to offer residents a convenient package pickup location.

CREATE SMALL DOG PARK

Behind the subject there is room for a small dog park, which will offer a new owner additional revenue upside by attracting residents who will pay pet rent.

DOG PARK BEHIND BUILDING

INSTALL GREENERY IN EXTERIOR HALLWAYS

The exterior hallways can be easily improved by adding some greenery along the iron railings.

20 78 SHERIDAN

6. MARKET-PROVEN VALUE ADD (CONTINUED)

OLD EXTERIOR

21 INVESTMENT SUMMARY NEW EXTERIOR

22 78 SHERIDAN

PROPERTY DESCRIPTION

23 INVESTMENTPROPERTY DESCRIPTION SUMMARY PROPERTY SUMMARY Number of Units 17 Units Year Built 1965 Stories Two-Three Stories Net Rentable Area 17,544 SF Average Unit Size 1,032 SF

SITE Address 78 Sheridan Drive, Atlanta, GA 30305 County Fulton County Size/Density 0.39 Acres / 43.59 Units per Acre East side of Peachtree Rd., just north of E. Wesley Rd. and one-half mile south of E. Paces Ferry Rd. The property is 1 mile southwest of the intersection of Peachtree and Piedmont Rds., 1.2 miles southwest of Lenox Square/Phipps Location Plaza retail district, and 1.4 miles northwest of the GA- 400/I-85 interchange. The asset is situated between the Lenox MARTA station (1.2 miles to the northeast) and the Lindbergh MARTA station (1.7 miles southeast of subject). Overall radius is 5 miles north of downtown Atlanta. Peachtree Rd. at Subject: 36,700 VPD Traffic Counts E. Paces Ferry Rd. near Subject: 9,570 VPD Peachtree/Piedmont Rd. Intersection: 31,800 VPD

UTILITIES SERVICE/UTILITY SOURCE/COMPANY PAID BY* Air Cond/Hot Water/Cooking Electric / Georgia Power Resident Heat Gas / Georgia Natural Gas Resident Water/Sewer Atlanta Watershed Resident Trash Removal & Pest Control Consolidated Waste & Price Property Pest Control *Residents are billed $60/mo. for water/sewer utilities.

UNIT MIX SUMMARY TYPE # UNITS % UNITS SIZE (SF) 2BR-1BA, Gdn 17 100% 1,032 SF Total / Avg. 17 Units 1,032 SF Avg.

24 78 SHERIDAN

COMMUNITY AMENITIES • Central Mail Kiosk • Off-Street Parking

UNIT FEATURES • Cable & Internet Ready • Ceiling Fans* • Ceramic Tile Flooring* • Ceramic Tile Tub Surround • Entry Foyer w/Closet • FF Refrigerator w/Icemaker • Faux-Granite Countertops* • Fully Equipped Kitchen • Gooseneck Faucets* • Granite or Quartz Countertops* • Laundry/Utility Closet • Microwave Oven* • Patio or Balcony • Stainless Steel Appliances* • Tile Backsplash in Kitchen* • Track Lighting* • Undermount Sinks* • W/D Appliances Included* • W/D Connections • Walk-In Closets • Window Blinds • Wood-Look Flooring*

* Select Units

25 INVESTMENTPROPERTY DESCRIPTION SUMMARY 26 78 SHERIDAN

27 INVESTMENTPROPERTY DESCRIPTION SUMMARY Ref W/D

D/W 32 SF Range 0 Mechanical TH | 1, A AN | 2 BEDROOM, 1 B THE SHERID

28 78 SHERIDAN

BUCKHEAD BUCKHEAD: “BEVERLY HILLS OF THE EAST” ECONOMIC GROWTH & RECENT ANNOUNCEMENTS

LOCATION • The newly developing 5.2-mile PATH400 Greenway Trail will be the spine of Buckhead’s Trails and Greenways Subsystem. OVERVIEW • Jan 2017: Livable Buckhead’s “BUCKHEAD REdeFINED” master plan update underway to reduce traffic congestion and add greenspace. • Dec 2016: 100,000 SF startup hub ‘TechRise’ planned for Buckhead at Lenox & Piedmont Roads • Oct 2016: Buckhead’s Prominence will be home to GE’s new 400-job IT hub. • April 2016: Rubicon will relocate HQ from Central Perimeter to 34-story office tower, create 300 jobs. • March 2016: Atlanta philanthropist Bernie Marcus donates $75M to Piedmont Healthcare to launch expansion. • Feb 2016: Equity One redeveloping Piedmont Peachtree Crossing (Disco Kroger). • Jan 2016: Merchant e-Solutions will invest $5M in HQ at Live Oak Square (140 jobs). • Dec 2015: Cloud tech sales/marketing firm N3 LLC to establish new Piedmont Center HQ, growing to about 500 employees. • Sept 2015: UGA School of Law opened Atlanta Campus in Spring 2016 in the Terry College of Business Executive Education Center, across from Lenox Square Mall. • July 2015: Chicago-based CareerBuilder. com LLC leased 30,000+ SF in Buckhead to accommodate 200 employees; the firm employs 675 at Gwinnett County IT HQ.

29 INVESTMENTLOCATION OVERVIEW SUMMARY BUCKHEAD: “BEVERLY HILLS OF THE EAST”

Traversed by famed Peachtree Street, Atlanta’s exclusive Buckhead Phipps Plaza Hermes - Buckhead Atlanta community is one of the most affluent and largest mixed-use urban areas in the country. Its skyline of glass office towers, first- class hotels, and highrise residential buildings encompasses posh retailers and expensive neighborhoods.

Over the past several years, portion’s of Buckhead’s Peachtree Road Corridor have been transformed into “boulevard” areas lined with trees, Lenox Square wide pedestrian walkways, and new lighting and signs. The resulting improved pedestrian and traffic flow has encouraged street-level retail development among office and residential towers.

Buckhead’s 82,718-resident population climbs to a daytime level of 140,000. Per the Buckhead Coalition, Buckhead has 23M SF of office space, 5,257 hotel rooms, 1,500 retail outlets, 300 dining establishments, 31,000+ multifamily residences, and 17,821 single-family homes. Home to the Governor’s Mansion, Buckhead contains just 2% of Atlanta’s total single- family inventory, yet 40%+ of the metro region’s most expensive homes LUXURY RETAIL DESTINATION (which typically range from $600,000 to $1,000,000+). Home to thousands of national retailers and designer boutiques, Buckhead is the shopping mecca of the Southeast. A BUCKHEAD ESTATE Buckhead’s famous 56-year-old Lenox Square, 1.5M SF anchored by Neiman Marcus and Bloomingdale’s, attracts 35M shoppers annually. Last renovated in 2014, Lenox’s upscale retailers include Burberry, Brooks Brothers, Bvlgari, Cartier, Coach, Diane Von Furstenberg, Ferragamo, and Fendi.

Anchored by Saks Fifth Avenue, Nordstrom, and Belk, designer mall Phipps Plaza offers Celine, Gucci, Tiffany, Armani, Jimmy Choo, and Versace, among others. Legoland Discovery Center opened in 2012. The Phipps complex recently underwent a transforming facelift and added a 164-room AC Hotel by Marriott.

Broadening Buckhead’s luxury appeal is Oliver McMillan’s new Buckhead Atlanta haute couture development. With 800,000+ SF that includes 300,000 SF of upscale retail; 100,000+ SF of office; and 400,000+ SF high-rise residential units, Buckhead Atlanta features Hermes, Prada, Helmut Lang, Jimmy Choo, Christian Louboutin, and La Perla.

30 78 SHERIDAN

ATLANTA METRO ATLANTA - CAPITAL OF SOUTHEAST REGION by the numbers

10-Co. MSA Population - 2017 4,480,100 Unemployment Rate (July 2018) 3.8% Cost of Living Index 101% Cost of Business Index 88% Moody’s Cycle Phase Expansion Key Industries: Corporate Services, Government, Education & Health Services, Manufacturing Primary Growth Sectors: Distribution, corporate HQ, manufacturing, bio-tech health industries.

Awards and Accolades • 2018 - #10 Metro Area for STEM professionals, WalletHub • 2017 - Atlanta 3rd fastest-growing metro population in the nation, U.S. Census • 2017 - Atlanta No. 3 U.S. city poised to become tech mecca, Forbes • 2017 - No. 2 ‘Next Top Tech Town,’ Realtor. com • 2017 - The Country’s Hottest Industrial Market, bisnow • 2017 - Atlanta is getting younger, more educated, Savills Studley • 2017 - Metro leads nation in available housing lots with 80,000, Federal Reserve Bank • 2016 - Among Top 19 “Knowledge Capitals” of U.S. & Europe, Brookings Institute • 2016 - #6 U.S. metro exceeding projected job growth, CareerBuilder • 2016 - #1 Top Moving Destination, Penske Truck Leasing • 2016 - Among Top 10 Cities to Launch a Startup, DataFox

31 INVESTMENTLOCATION OVERVIEW SUMMARY METRO ATLANTA - CAPITAL OF SOUTHEAST REGION

Atlanta, the economic capital of the Southeast and a global business hub, DOWNTOWN ATLANTA is the center of one of the fastest growing metros in the country and the 10th largest GDP in the U.S.

Atlanta’s highly-charged critical mass of economic growth was ignited two decades ago when the city hosted the 1996 Summer Olympic Games, and that growth has not slowed since. In 2017, Atlanta’s population ranked as the third-fastest growing in the country. Per GSU Economic Forecasting, 261,900 jobs were added during 2014-2016 and 60,000 in 2017; 58,100 new jobs are projected in 2018. The region is expected to add 2.5M residents and an additional 1.5M jobs by 2040.

GAME-CHANGING ECONOMIC GROWTH

Atlanta is advancing toward a new cycle of economic prosperity and position thanks to a multitude of major corporate and technology commitments by firms such as Amazon, Facebook, Duracell, State Farm, Mercedes-Benz, Porsche, Kaiser Permanente, KPMG, Google, WorldPay, GE, NCR, Honeywell, and Anthem.

Dramatic developments are underway in healthcare and technology sectors. Film making has become big business in Georgia and Atlanta. Emerging technologies and the infrastructure to support start-up companies are another bright spot. Atlanta is now a leader in mobile technology, supply chain management, internet security, healthcare IT, and payments processing, all growth industries. Technical and professional services will continue to be key employment generators, and the rebound in these high-wage industries is driving above-average income growth. MAJOR SE CITIES JOB GROWTH 2011-2015

DIVERSE CORPORATE ANCHOR 18.0% 16.0% Atlanta’s legendary diverse and inherently resilient economic base is its ongoing 14.0% h t 12.0% hallmark, and it ranks among the country’s Top 5 cities in Fortune 500 HQ. Twenty- w o

r 10.0% G five metro Atlanta headquartered firms are among America’s largest corporations b 8.0% o J

qualifying as the 2016 FORTUNE 1000, of which 16 rank among the 2016 FORTUNE t 6.0% n e

c 4.0%

500: The Home Depot, UPS, The Coca-Cola Company, Delta Air Lines, The Southern r e Company, Genuine Parts Company, First Data, HD Supply Holdings, Inc., Veritiv, P 2.0% 0.0% SunTrust Banks, AGCO Corporation, Asbury Automotive, Coca-Cola European Partners, NCR Corporation, PulteGroup, and Newell Brands.

* Source: US Bureau of Labor Statistics, Moody’s Analytics

32 78 SHERIDAN

INTELLECTUAL CAPITAL SUSTAINS DEEP TALENT POOL , BUCKHEAD

Atlanta is a magnet for higher education, consistently ranking among the top 10 metro areas in educational achievement. Atlanta ranks in the Top five “U.S. Cities for Recent College Graduates,” per Bloomberg 2015. Georgia residents have access to the HOPE scholarship/grant program. Young, educated professionals are a major draw for new businesses coming into the region and also encourage entrepreneurship.

Fifty-seven metro colleges and universities enroll a total of 250,000+ students regionally. Atlanta’s three largest public universities include the newly consolidated GA State University/GA Perimeter College (GSU), Kennesaw State University (KSU), and GA Institute of Technology. Other public universities include Southern Polytechnic State, Clayton State, and the University of West GA. The Atlanta University Center (AUC) is home to Clark Atlanta University, Morehouse School of Medicine, Morehouse College, and Spelman College. Seven regional technical colleges have a combined total enrollment of nearly 60,000 students.

Emory University’s graduate programs in medicine, law, and business consistently rank among the nation’s highest rated. Atlanta’s Agnes Scott College, Mercer University, and Oglethorpe University are highly-ranked private local institutions.

GEORGIA INSTITUTE OF TECHNOLOGY CAMPUS, AT CORE OF STATE-WIDE TECH GROWTH

Georgia’s bioscience and health IT industries are responsible for almost $30 billion in annual reported revenue and 120,000 employees. The state’s health IT industry already leads the nation with 200+ companies, 15,000 employed, and $4B+ in annual reported revenue. With an annual economic impact of $23B, the state’s bioscience industry is also firmly rooted.

Powered by the strength of 13,000+ technology companies, Atlanta has a long history of success in attracting and growing top high-tech firms and stands as one of the country’s most significant and innovative technology hubs.

Metro Atlanta has the 9th-largest employed technology talent pool in the U.S. with more than 134,700 related jobs. It has also produced the 3rd-fastest tech growth since 2012, adding 34,700+ new tech jobs. Only Toronto and Charlotte produced more tech jobs during that period.

33 INVESTMENTLOCATION OVERVIEW SUMMARY NOTABLE NEW ECONOMIC GROWTH

State Farm Porsche Jacoby Development - former OFS site

• State Farm’s new 2.2M SF Perimeter Center • Anthem’s new 352,000 SF Midtown • UPS is creating 1,250 jobs at new 1.3M SF, campus will include three towers that will Technology Center is under construction $400M logistics hub next to Charlie Brown house the southeastern operations for the as of early 2018 and will employ 3,000 IT Airport, the firm’s 3rd largest such facility. insurance company and 8,000+ workers. workers when completed. • San Francisco-based Flexport Inc. will (C&W represented landlord in transaction.) • In 2016, General Electric Co. picked Atlanta establish 50,000 SF sales/operations hub at • Kaiser Permanente’s 150,000 SF, $20M info for a $3M global digital operations center — a Bank of America Plaza in Midtown, 330 jobs. tech campus in Midtown will create 900+ project that will create 250 jobs in Midtown. • Staffing giant Jackson Healthcare’s $100M jobs by 2019, bringing firm’s GA presence to • Google’s new 1.2M SF data center repair expansion of Alpharetta campus to include 4,000+ employees and physicians. facility opened in 2015 at Fairburn Logistics 1,400 new employees over 5 years. opened Center, a cross-dock facility launched in 2014 • Porsche Cars North America, Inc. • Duracell plans to employ up to 800 at 874K $100M U.S. HQ in 2015 next to Hartsfield- by TPA Group. SF Core5 Logistics Center at Shugart Farms Jackson Airport and added 400 jobs (100 • Shire Pharmaceuticals’ (fka Baxter) new in Fairburn/South Fulton County. new to GA). (C&W represented Porsche.) $1.2B Stanton Springs plant (Newton County) • Amazon.com Inc.’s 25,000 SF Atlantic • Mercedes-Benz USA is creating 1,000 jobs is nearing completion and about halfway Station logistics tech center opened in 2017. with its HQ move to Atlanta from NJ. Their through hiring 1,600 workers. new 250,000 SF office within 12-acre HQ • In 2018, Facebook Inc. bought 416 acres for • The Integral Group’s 165-acre “Assembly” Sandy Springs campus opened in 2017. new $42B data center campus at Stanton mini-city (fka GM Doraville plant) will include Springs (Newton County), to create several • Worldpay’s new $10M office 10M SF of mixed-use space. Capstone South’s hundred jobs. (2015) employs 1,200. “Third Rail Studios” is the first development. • $400M Phase I of planned 70-acre Quarry opened new 750,000 SF global HQ and partners are planning to turn • NCR • Jacoby Yards next to Bankhead MARTA station will campus in Midtown in 2018. Their two towers 114 acres of Gwinnett’s OFS optic fiber include 575,000 SF office, 75,000 SF retail, a near Georgia Tech will employ 5,000. manufacturing site (formerly Lucent) into hotel, and 850 residential units. 1.2M SF • Honeywell chose Midtown in 2017 for Atlanta Media Campus and Studios (film school, housing, hotel, etc.) • In July 2018, Thyssenkrupp announced plans software development center and HQ of for new $200M North American HQ campus $10B Home and Building Technologies unit • Alcon Laboratories creating 300+ jobs for its elevator division at The Battery at and will hire 830 over next five years. at $275M Johns Creek campus. Atl beat SunTrust Park; will house 900+ employees. Singapore and Germany for expansion.

34 78 SHERIDAN

RAPID POPULATION GROWTH CONTINUES Long reputed for its rapid growth, metro Atlanta had the third highest population gain of any metro in the country, adding nearly 90,000 new residents between 2016 and 2017 and bringing the total regional population to almost 5.9 million residents.

Per recent Atlanta Regional Commission statistics, 78,300 of those new residents were in the core 10-county Atlanta area. Fulton County grew the most, adding 17,100 residents, just ahead of Gwinnett’s 16,900. The city of Atlanta added 9,900 residents, up 2,000 from the prior year, an increase accompanied by a boom in multifamily housing.

INFRASTRUCTURE INVESTMENT THE ATLANTA BELTLINE

ATLANTA-REGION TRANSIT LINK AUTHORITY - “THE ATL” The Atlanta BeltLine is the most comprehensive revitalization effort ever undertaken in Atlanta and among the most wide-ranging urban Atlanta’s rapid growth requires major investment in infrastructure. In March redevelopment and mobility projects in the country. Conceived in 2018, GA passed landmark legislation that sets in place funding framework 1999 by a Georgia Tech graduate student, the BeltLine is creating a and a regional transit governing system for all of metro Atlanta. By 2023, new framework for sustainable regional growth and revitalizing under- the region’s transit systems will be folded into a single brand name—the performing areas of the city, increasing real estate value along its path. Atlanta-region Transit Link Authority, or The ATL. The ATL will be charged with transit planning across 13 metro counties, utilizing existing systems The BeltLine links a network of public parks, multi-use trails, and MARTA, CobbLinc, Gwinnett County Transit, and GRTA’s Xpress service. transit through historic railroad corridors that encircle downtown and interconnecting 45 neighborhoods. New multi-use trails will accompany Already planned MARTA expansion projects will infuse an estimated $5.2B the 22-mile transit loop, and 11 miles of additional trails will extend into into regional economy. Transit expansions are expected to create 45,000 surrounding neighborhoods. jobs and $116M in additional annual wages by 2040.

35 INVESTMENTLOCATION OVERVIEW SUMMARY HARTSFIELD-JACKSON INTERNATIONAL AIRPORT (ATL) HARTSFIELD-JACKSON INTERNATIONAL AIRPORT

ATL is a dominant economic engine for the region and one of GA’s most critical assets. As the state’s largest job base (63,300+ direct, 450,000+ indirect jobs), ATL boasts a regional economic impact of $64.2B and $70.9B in Georgia. In 2017, for the 20th year in a row, ATL secured its “world’s busiest airport” title by serving 104M passengers. ATL also tops the world in aircraft movements, with 879,560 operations in 2017.

The airport is the anchor of a growing “Aerotropolis” economic district catalyzed by the new Porsche North American HQ. The Aerotropolis Atlanta Alliance’s new blueprint lays out a vision to transform the entire South Atlanta region into a thriving mixed-use Airport City submarket. The city of College Park is moving forward with plans for a 320-acre, $500M+ “Airport City College Park” mixed-use development with potential to create thousands of jobs.

ATLANTIC STATION

SMART GROWTH FUTURE

By focusing on improving transportation and connectivity issues, Atlanta is becoming one of the nation’s top Smart Growth cities. Planned expansions of MARTA, including a GA 400 corridor extension from the current North Springs terminus north to Alpharetta, a heavy rail line along I-20 East, and a light rail line from Lindbergh to Avondale, are expected to catalyze metro Atlanta’s smart growth future.

ATLANTIC STATION, MIDTOWN ATLANTA

As the initial catalyst of the rapid expansion of Atlanta’s West Midtown district, Atlantic Station is a national model for smart growth. Its stunning mix of low to high-rise buildings presents a modern architectural skyline and most buildings have LEED certification. Several of the region’s most notable banking and law firms have marquees at Atlantic Station, including Wells Fargo and BB&T. Sage Software established it North American HQ there, where 350 are employed.

36 78 SHERIDAN

APARTMENT MARKET

37 INVESTMENTAPARTMENT MARKETSUMMARY RENT COMPARABLES SUMMARY RENT COMPARABLES 78 SHERIDAN

1

2 3

7 6 4

5

RENT COMPARABLES PROPERTY # UNITS YEAR BUILT OCCUPANCY AVG. SF MKT. RENT EFF. RENT* EFF. RENT/SF S 78 Sheridan 17 1965 94% 1,032 $1,262 $1,173 $1.14 1 Mathieson House 18 1950 100% 925 $1,300 $1,300 $1.41 2 Elle of Buckhead 373 2013 95% 926 $1,704 $1,704 $1.84 3 The Aster Buckhead 224 2000 88% 1,023 $1,625 $1,583 $1.55 4 CoHo Atlanta 128 1948 90% 1,115 $1,592 $1,592 $1.43 5 Ansley Forest 269 1960 98% 939 $1,730 $1,730 $1.84 6 Peachtree Hills Court 32 1959 95% 950 $1,295 $1,295 $1.36 7 The Park at Peachtree Hills 118 1965 91% 592 $1,070 $1,070 $1.81 TOTAL / AVG 166 1971 94% 924 $1,474 $1,468 $1.59

* Based on September 2018 rent surveys. Effective rents reflect concessions, and also exclude values of any included services/utilities, where applicable.

38

Broker 78 SHERIDAN 78 SHERIDAN

78 SHERIDAN 78 Sheridan Drive UNIT MIX Atlanta, GA 30305 UNIT TYPE # UNITS SIZE (SF) MKT. RENT EFF. RENT EFF. RENT/SF Fulton County 2BR-1BA 9 1,032 $1,150 $1,069 $1.04 Total Units: 17 2BR-1BA, ER 4 1,032 $1,525 $1,450 $1.41 Year Built: 1965 2BR-1BA, R 4 1,032 $1,250 $1,200 $1.16 Rentable Area (SF): 17,544 TOTAL / AVG 17 1,032 $1,262 $1,173 $1.14 Occupancy: 94% Preleased: 100%

COMMENTS UTILITIES UNIT FEATURES COMMUNITY AMENITIES TYPE PAID BY Cable & Internet Ready Central Mail Kiosk Electric Resident Ceiling Fans* On-Site Parking Water and Sewer Resident Ceramic Tile Flooring* Ceramic Tile Tub Surround* Natural Gas None Entry Foyer w/Closet Trash Removal Property Faux-Granite Countertops* FF Refrigerator w/Icemaker Fully Equipped Kitchen UNIT MIX BREAKDOWN Gooseneck Faucets* Granite Countertops* Laundry/Utility Closet Microwave Oven* Patio or Balcony Quartz Countertops*

Stainless Steel Appliances* 2 B R Tile Backsplash in Kitchen* 10 0 % Track Lighting* Undermount Sinks* W/D Appliances Included* W/D Connections Walk-In Closets Window Blinds Wood-Look Flooring*

* Select Units

39 INVESTMENTAPARTMENT MARKETSUMMARY 78 SHERIDAN

1 MATHIESON HOUSE 3196 Mathieson Drive UNIT MIX Atlanta, GA 30305 UNIT TYPE # UNITS SIZE (SF) MKT. RENT EFF. RENT EFF. RENT/SF Fulton County 2BR-1BA 18 925 $1,300 $1,300 $1.41 Total Units: 18 TOTAL / AVG 18 925 $1,300 $1,300 $1.41 Year Built: 1950 Rentable Area (SF): 16,650 Occupancy: 100% COMMENTS UTILITIES Managed by OCD Management, Inc. (Atl) Some units have w/d included. Upgrades TYPE PAID BY include granite countertops, stainless steel appliances, wood-look flooring, new carpet, Electric Resident UNIT FEATURES COMMUNITY AMENITIES new lighting/fixtures, and hardware. Water and Sewer Resident Cable & Internet Ready Courtyard Natural Gas Resident Ceiling Fans Detached Garages Available Trash Removal Resident Fully Equipped Kitchen Elevator Hardwood Floors Available Laundry Facility Microwave Oven On-Site Parking UNIT MIX BREAKDOWN Patio or Balcony Separate Dining Area Stainless Steel Appliances Walk-In Closets* Window Blinds

* Select Units

2 B R 10 0 %

40 78 SHERIDAN 78 SHERIDAN

2 ELLE OF BUCKHEAD 235 Pharr Road UNIT MIX Atlanta, GA 30305 UNIT TYPE # UNITS SIZE (SF) MKT. RENT EFF. RENT EFF. RENT/SF Fulton County 0BR-1BA, S1 49 664 $1,313 $1,313 $1.98 Total Units: 373 1BR-1BA, A1 84 773 $1,683 $1,683 $2.18 Year Built: 2013 1BR-1BA, A2 97 835 $1,590 $1,590 $1.90 Rentable Area (SF): 345,224 1BR-1BA, A3 Den 1 1,048 $1,630 $1,630 $1.56 Occupancy: 95% 1BR-2BA, A4 Loft 8 1,333 $1,902 $1,902 $1.43 Managed by Lincoln Property Company 2BR-2BA, B1 38 1,067 $1,745 $1,745 $1.64 2BR-2BA, B7 1 1,145 $2,067 $2,067 $1.81 2BR-2BA, B3 34 1,150 $2,054 $2,054 $1.79 UNIT FEATURES COMMUNITY AMENITIES 2BR-2BA, B4 24 1,157 $1,904 $1,904 $1.65 10' and 12' Ceilings Billiards/Pool Table 2BR-2BA, B2 29 1,194 $1,983 $1,983 $1.66 2" Blinds Conference & Media Room 42" Cabinets Controlled Access Building 2BR-2BA, B6 4 1,385 $1,963 $1,963 $1.42 Breakfast Bar or Island Courtyard 2BR-2BA, B5 4 1,581 $2,426 $2,426 $1.53 Ceiling Fans Demonstration Kitchen TOTAL / AVG 373 926 $1,704 $1,704 $1.84 Ceramic Tile Baths Entertainment Lounge *Effective rents exclude value of direct-access attached garages, where applicable. Curved Shower Rods EV Charging Stations Custom Maple Cabinetry Fire Pit Gathering Area Dual Sink Vanity* Fitness Center COMMENTS UTILITIES Framed Bathroom Mirrors Fountain Current concessions include $500 off 1BRs, TYPE PAID BY Fully Equipped Kitchen Library 1 month free on 2BRs. Electric Resident Granite Countertops Parking Garage (Free) Hardwood Floors Available* Poolside Kitchen Water and Sewer Resident Loft-Style Available* Resident Business Center Natural Gas None Microwave Oven Rooftop Lounge (Indoor/Outdoor) Trash Removal Resident Oversized Windows Shuffleboard Table Patio or Balcony Sprinklered Buildings Side-by-Side Refrigerator* Swimming Pool UNIT MIX BREAKDOWN Stainless Steel Appliances WiFi in Amenity Areas Tile Backsplash in Kitchen Yoga and Pilates Room

Track & Pendant Lighting Zen Garden (3) 0 B R 13 % Transom Windows 2 BR Undermount Kitchen Sinks 36% W/D Appliances Included Walk-In Closets 1 B R 5 1% Walk-In Shower*

* Select Units

41 INVESTMENTAPARTMENT MARKETSUMMARY 78 SHERIDAN

3 THE ASTER BUCKHEAD 2900 Pharr Court South NW UNIT MIX Atlanta, GA 30305 UNIT TYPE # UNITS SIZE (SF) MKT. RENT EFF. RENT EFF. RENT/SF Fulton County 1BR-1BA 16 675 $1,262 $1,220 $1.81 Total Units: 224 1BR-1BA 36 786 $1,343 $1,301 $1.66 Year Built: 2000 1BR-1BA 71 885 $1,448 $1,406 $1.59 Rentable Area (SF): 229,248 2BR-1BA 4 1,162 $1,671 $1,629 $1.40 Occupancy: 88% 2BR-2BA 34 1,147 $1,607 $1,565 $1.36 Managed by Greystar 2BR-2BA 46 1,279 $1,967 $1,925 $1.50 3BR-2BA 17 1,461 $2,406 $2,364 $1.62 TOTAL / AVG 224 1,023 $1,625 $1,583 $1.55 UNIT FEATURES COMMUNITY AMENITIES 2" Plantation Blinds Business/Leasing Office Effective rents reflect concessions. 9' Ceilings w/Cr. Molding Coffee & Tea Bar Alarm System Available Controlled Access Gates COMMENTS UTILITIES Bay Window* Courtyards with Gardens Upgraded units have wood-look flooring, Black Appliances* Dog Park/Play Area TYPE PAID BY quartz or granite countertops, tile Breakfast Bar or Island Fitness Center backplash, microwave oven, new lighting, Electric Resident Built-in Desks/Shelving* Fountain fixtures and hardware. Clubhouse being Water and Sewer Resident renovated. Cable & Internet Ready Gazebo Natural Gas None Ceiling Fans Parking Garage Trash Removal Resident Ceramic Tile Kitchen Floor* Poolside Grilling Area Ceramic Tile Tub Surround* Rentable Storage Units (25 @ $50- $125) Curved Shower Rods Resident Business Center UNIT MIX BREAKDOWN Dining Room w/Chair Rail* Resident Lounge Dual Sink Vanity* Sprinklered Buildings Framed Bathroom Mirrors* Swimming Pool 3 B R Fully Equipped Kitchen 8% Garden Tubs 2 BR Gooseneck Faucets 1 B R 38% 54% Granite Countertops* Microwave Oven* Patio or Balcony Quartz Countertops* Shower Stall* Stainless Steel Appliances Sunroom* Tile Backsplash in Kitchen Track Lighting Trey Ceilings* Undermount Sinks* W/D Appliances Included (All)

42 78 SHERIDAN 78 SHERIDAN

4 COHO ATLANTA 177 N.Colonial Homes Circle UNIT MIX Atlanta, GA 30309 UNIT TYPE # UNITS SIZE (SF) MKT. RENT EFF. RENT EFF. RENT/SF Fulton County 2BR-1BA 32 1,077 $1,444 $1,444 $1.34 Total Units: 128 2BR-1.5BA 64 1,087 $1,649 $1,649 $1.52 Year Built: 1948 2BR-1.5BA 32 1,209 $1,624 $1,624 $1.34 Rentable Area (SF): 142,720 TOTAL / AVG 128 1,115 $1,592 $1,592 $1.43 Occupancy: 90%

Managed by Venterra Realty (Canada HQ)

COMMENTS UTILITIES UNIT FEATURES COMMUNITY AMENITIES Major Exterior & Interior Renovation in TYPE PAID BY Alarm System Available Clubroom/Resident Lounge 2015: stainless steel appliances, granite countertops, tile backsplash, faux Electric Resident Cable & Internet Ready Covered Parking Available (12 @ $60) hardwood flooring, gas ranges, Water and Sewer Resident Ceiling Fans hardware/fixtures/plumbing, and two-tone Detached Garages Available (50 @ Natural Gas Resident Fully Equipped Kitchen $125) custom paint. Gas Range/Oven Dog Park/Play Area Trash Removal Resident Golf Course Views Dog Spa/Grooming Station Granite Countertops Fire Pit Gathering Area Microwave Oven Fitness Center UNIT MIX BREAKDOWN Patio or Balcony Grilling/Picnic Area Stainless Steel Appliances Laundry Facility (2) Tile Backsplash in Kitchen On BeltLine (at Dellwood Drive) W/D Appliances Included Poolside Cabanas Window Blinds Swimming Pool Wood-Look Flooring

2 B R 10 0 %

43 INVESTMENTAPARTMENT MARKETSUMMARY 78 SHERIDAN

5 ANSLEY FOREST 1616 Piedmont Avenue UNIT MIX Atlanta, GA 30324 UNIT TYPE # UNITS SIZE (SF) MKT. RENT EFF. RENT EFF. RENT/SF Fulton County 0BR-1BA, Studio 33 468 $1,115 $1,115 $2.38 Total Units: 269 1BR-1BA 49 729 $1,375 $1,375 $1.89 Year Built: 1960 2BR-1BA 65 917 $1,570 $1,570 $1.71 Rentable Area (SF): 252,586 2BR-1BA 12 917 $1,650 $1,650 $1.80 Occupancy: 98% 2BR-1BA 33 965 $1,570 $1,570 $1.63 Managed by Madison Property 2BR-2BA, TH 22 936 $1,775 $1,775 $1.90 Management (Atl) 3BR-2.5BA, TH 55 1,425 $2,700 $2,700 $1.89 TOTAL / AVG 269 939 $1,730 $1,730 $1.84 UNIT FEATURES COMMUNITY AMENITIES Breakfast Bar or Island Across from Ansley Mall Ceiling Fans Close to Ceramic Tile Baths Fitness Center COMMENTS UTILITIES Ceramic Tile Tub Surround Laundry Facility Major Exterior & Interior Renovations in Flat Panel Cabinets (Italian) Leasing/Business Office TYPE PAID BY 2015: white appliances, wood-look flooring, Gooseneck Faucets MARTA Bus Line granite countertops, cabinetry, tile Electric Resident Juliette Balcony* Resident Business Center backsplash, new lighting, fixtures, hardware, Water and Sewer Resident integral quartz porcelain countertops in Kitchen Pantry Swimming Pool Natural Gas Resident bathrooms, fabric shades, and floor plan Microwave Oven Walk to Atlanta BeltLine modifications. Trash Removal Resident Patio or Balcony* Pendant & Track Lighting Quartz or Granite Counters UNIT MIX BREAKDOWN Separate Dining Area* Stainless Steel Appliances* Tile Backsplash in Kitchen 0 B R 3 B R Under Cabinet Lighting 12 % 20% Undermount Kitchen Sinks 1 B R 18 % W/D Connections (Except Studio) Walk-In Closets* 2 B R Window Blinds 50% Wood or Wood-Look Flooring

* Select Units

44 78 SHERIDAN 78 SHERIDAN

6 PEACHTREE HILLS COURT 370 Peachtree Hills Avenue UNIT MIX Atlanta, GA 30306 UNIT TYPE # UNITS SIZE (SF) MKT. RENT EFF. RENT EFF. RENT/SF Fulton County 2BR-1BA 32 950 $1,295 $1,295 $1.36 Total Units: 32 TOTAL / AVG 32 950 $1,295 $1,295 $1.36 Year Built: 1959 Rentable Area (SF): 30,400 Occupancy: 95% COMMENTS UTILITIES Managed by MLC Properties (Atl) TYPE PAID BY Electric Resident UNIT FEATURES COMMUNITY AMENITIES Water and Sewer Resident Cable & Internet Ready Courtyard Natural Gas Resident Ceiling Fans MARTA Rail Available (Lindbergh Station) Trash Removal Resident Faux-Granite Countertops On-Site Parking Fully Equipped Kitchen Kitchen Window UNIT MIX BREAKDOWN W/D Connections Window Blinds Wood Flooring Available

2 B R 10 0 %

45 INVESTMENTAPARTMENT MARKETSUMMARY 78 SHERIDAN

7 THE PARK AT PEACHTREE HILLS 480 Peachtree Hills Avenue NE UNIT MIX Atlanta, GA 30305 UNIT TYPE # UNITS SIZE (SF) MKT. RENT EFF. RENT EFF. RENT/SF Fulton County 0BR-1BA, Studio 12 400 $950 $950 $2.38 Total Units: 118 1BR-1BA 94 600 $1,075 $1,075 $1.79 Year Built: 1965 2BR-1BA 12 725 $1,149 $1,149 $1.58 Rentable Area (SF): 69,900 TOTAL / AVG 118 592 $1,070 $1,070 $1.81 Occupancy: 91%

Managed by First Communities Management, Inc. COMMENTS UTILITIES UNIT FEATURES COMMUNITY AMENITIES Renovating units with wood-look flooring, TYPE PAID BY Black/Stainless Appliances* Car Charging Station faux-granite countertops, stainless steel appliances. They charge $100 more for Electric Resident Breakfast Bar/Pass-Through* Grilling/Picnic Area upgraded units. Water and Sewer Resident Cable & Internet Ready Laundry Facility Ceiling Fans On-Site Parking Natural Gas Resident Ceramic Tile Flooring* Swimming Pool Trash Removal Resident Ceramic Tile Tub Surround Walking/Jogging Trail Curved Shower Rods* Faux-Granite Countertops* UNIT MIX BREAKDOWN Fully Equipped Kitchen Gas Range/Oven

Gooseneck Faucets 2 B R 0 BR 10 % 10 % Patio or Balcony Separate Bath Vanity Area* Track Lighting

W/D Connections* 1 BR Walk-In Closets* 80% Window Blinds Wood Flooring Available* Wood-Look Flooring*

* Select Units

46 78 SHERIDAN

SALES COMPARABLES SUMMARY

2

4 5 8

10 6

9 1

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SALES COMPARABLES PROPERTY # UNITS YEAR BUILT SALE PRICE PRICE PER UNIT PRICE PER SF SALE DATE

78 Sheridan 17 1965 TBD TBD TBD TBD

1 The Maiden Apartments 7 1935 $1,332,000 $190,286 $145.15 8/8/2016 2 The Ashford 221 1968 $38,800,000 $175,566 $138.82 10/11/2016 3 The Avery 30 1969 $5,650,000 $188,333 $357.41 12/29/2016 4 Peachtree & Club 8 1960 $2,004,400 $250,550 $174.08 3/29/2017 5 Camden Buckhead Square 250 2015 $58,200,000 $232,800 $281.45 6/1/2017 6 CoHo 128 1948 $23,100,000 $180,469 $108.11 11/28/2017 7 195 Powell St 12 1964 $2,500,000 $208,333 $289.35 1/12/2018 8 32 Hundred Lenox 431 1961 $72,500,000 $168,213 $174.48 5/3/2018 9 1173 Virginia Ave NE 5 1920 $1,200,000 $240,000 $180.59 7/5/2018 10 Hanover East Paces 375 2017 $117,100,000 $312,266 $349.49 8/27/2018 TOTAL / AVG 147 1966 $32,238,640 $214,682 $219.89 N/A

47 INVESTMENTAPARTMENT MARKETSUMMARY 48 78 SHERIDAN

78 SHERIDAN FINANCIAL ANALYSIS

49 INVESTMENTFINANCIAL ANALYSIS SUMMARY 78 SHERIDAN

Address 78 Sheridan Drive Atlanta, GA 30305 County Fulton County 7Number8 SH ERof UnitsIDAN 17 Units Year78 Sher Builtidan Drive 1965 Atlanta, Georgia 30305 Rentable Area 17,544 SF Fulton Site Size 0.39 Acres Units: 43.59 Units per Acre 17 2 BR Density 100% Year Built: 1965 Occupancy* 94.1% Total Area (SF): 17,544 GSain/(Lite Size (osAcrses)) :to Lease* -5.5% 0.39

*AsD enofsi Stye (pUtneitms Pbere rA cr10e), :2018 43.59 Occupancy (As of Sep 10, 2018): 94.1% Gain/(Loss) to Lease (As of Sep 10, 2018): -5.5% UNIT MIX MARKET RENT LEASE RENT MARKET RENT AFTER UPGRADES UNIT # OF SIZE TOTAL MARKET MARKET MONTHLY ANNUAL LEASE RENT # UNITS LEASE VALUE-ADD VALUE-ADD MONTHLY ANNUAL LEASE RENT TYPE UNITS SQ. FT. SQ. FT. RENT RENT/SQ. FT. RENT RENT PREMIUM OCCUPIED RENT/SQ. FT. RENT RENT/SQ. FT. RENT RENT 2 BR / 1 BA 9 1,032 9,288 $1,150 $1.11 $10,350 $124,200 - 9 $1,069 $1.04 $1,525 $1.48 $13,725 $164,700 2 BR / 1 BA - R 4 1,032 4,128 $1,250 $1.21 $5,000 $60,000 $131 4 $1,200 $1.16 $1,525 $1.48 $6,100 $73,200 2 BR / 1 BA - ER 4 1,032 4,128 $1,525 $1.48 $6,100 $73,200 $381 3 $1,450 $1.41 $1,525 $1.48 $6,100 $73,200 TOTALS / AVERAGES 17 1,032 17,544 $1,262 $1.22 $21,450 $257,400 16 $1,173 $1.14 $1,525 $1.48 $25,925 $311,100

VALUE-ADD ASSUMPTIONS & SUMMARY COMMENTS VALUE-ADD / CAPITAL NEEDS RENT PREMIUMS (ON LEASE RENT) RETURN ON INVESTMENT Value Add Cost (13 units at $12000 / Unit) $156,000 Monthly Premium $4,475 Additional Capital Needs $0 2 BR Units $335 Annual Premium $53,700 Total Cost $156,000 ROI 34%

UTILITIES SEPARATELY TYPE OF SERVICE PROVIDER RESIDENTS PAY MONTHLY FEE METERED Electric Name of Provider Yes Utility Company Water & Sewer Name of Provider Yes Property Natural Gas Name of Provider Yes N/A Trash Removal Name of Provider Yes Property Pest Control Name of Provider n/a

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JULY 2018 JULY 2018 T-3 INCOME / T-11 EXPENSES T-1 INCOME / T-11 EXPENSES PRO FORMA TOTAL PER UNIT TOTAL PER UNIT TOTAL PER UNIT PER MONTH INCOME 1 Scheduled Market Rent $182,670 $10,745 $196,459 $11,556 $257,400 $15,141 $21,450 2 Pro Forma Upgrade Premium 0 0 0 0 53,700 3,159 4,475 3 Gain/(Loss) to Lease 0 0.0% 0 0.0% (1,556) -0.5% (130) Total Gross Potential $182,670 $10,745 $196,459 $11,556 $309,545 $18,209 $25,795 4 Vacancy 0 0.0% 0 0.0% (15,477) -5.0% (1,290) 5 Bad Debt/Write-Offs 0 0.0% 0 0.0% (1,548) -0.5% (129) 6 Concessions 0 0.0% 0 0.0% (1,548) -0.5% (129) Net Rental Income $182,670 $10,745 $196,459 $11,556 $290,972 $17,116 $24,248 7 Utility Income 5,651 332 8,655 509 11,070 651 923 8 Other Income 9,755 574 22,545 1,326 7,854 462 655 Total Other Income $15,406 $906 $31,200 $1,835 $18,924 $1,113 $1,577 Total Operating Income $198,077 $11,652 $227,659 $13,392 $309,896 $18,229 $25,825

EXPENSES Electric - Common Area $1,327 $78 $1,327 $78 $1,360 $80 113 Electric - Vacant 1,120 66 1,120 66 1,139 67 95 Water/Sewer 9,352 550 9,352 550 9,537 561 795 Trash Removal 3,408 200 3,408 200 3,485 205 290 Subtotal Utilities 15,207 895 15,207 895 15,521 913 1,293 9 Landscaping 310 18 310 18 901 53 75 10 Turnover 5,414 318 5,414 318 3,060 180 255 11 Repairs & Maintenance 20,927 1,231 20,927 1,231 6,800 400 567 Subtotal Repairs & Maintenance 26,651 1,568 26,651 1,568 10,761 633 897 12 Payroll & Burden 0 0 0 0 0 0 0 General & Administrative 5,262 310 5,262 310 3,400 200 283 Advertising 927 55 927 55 952 56 79 13 Property Management Fee 10,137 5.1% 10,137 4.5% 24,792 8.0% 2,066 14 Real Estate Taxes 19,697 1,159 19,697 1,159 47,578 2,799 3,965 15 Property Insurance 3,513 207 3,513 207 3,400 200 283 16 Capital Reserves 0 0 0 0 4,250 250 354 Total Operating Expenses $81,393 $4,788 $81,393 $4,788 $110,654 $6,509 $9,221

NET OPERATING INCOME $116,683 $6,864 $146,266 $8,604 $199,242 $11,720 $16,604

Unless otherwise noted on the footnotes page, Pro forma figures are based on a 2.0% increase over the respective July 2018 T-3 Income / T-11 Expenses figure.

INVESTMENTFINANCIAL ANALYSIS SUMMARY 9/10/5120182:17 PM p2 HISTORICAL & PRO FORMA INCOME FOOTNOTES HISTORICAL & PRO FORMA EXPENSE FOOTNOTES 1 Scheduled Market Rent 9 Landscaping The Scheduled Market Rent of $257,400, or $21,450 per month, is based on the current The pro forma Landscaping Expense is assumed to be $75/month. market rent shown on the Rent Roll dated 9-10-18. 10 Turnover 2 Pro Forma Upgrade Premium The pro forma Turnover Expense is based on an average cost of $600/turn and 30% The pro forma assumes the property will begin upgrades in Year 1. Proposed upgrades annual turnover. are expected to take approximately 1 years to complete. The anticipated gain through 11 Repairs & Maintenance rent premiums for the upgrades is expected to be around $53,700/year throughout the course of the upgrade period. The pro forma Repairs & Maintenance Expense is based on a typical figure of $400/unit. 3 Gain/(Loss) to Lease 12 Payroll & Burden The pro forma assumes Gain/(Loss) to Lease to be -0.5% of Scheduled Market Rent. The pro forma assumes that all payroll expenses are covered by the Property Management Fee. 4 Vacancy 13 Property Management Fee The pro forma assumes vacancy equivalent to -5.0% of the Gross Potential Income. The pro forma Management Fee is 8.0% of Total Operating Income. The current property 5 Bad Debt/Write-Offs management fee is 6.0%. The pro forma assumes Bad Debt/Write-Offs of -0.5% of pro forma Gross Potential 14 Real Estate Taxes Income. PROPERTY TAXES 6 Concessions State Georgia 2018 Tax Value $2,507,200 Pro forma assumes concessions of -0.5% of Gross Potential Income. County Fulton County Assessed Value $1,002,880 7 Utility Income City Unincorporated Millage Rate 43.190 mills The pro forma Utility Income is assumed to be $651/unit which represents an 85% Real Property Tax $43,314 recovery of the pro forma Water/Sewer and Trash Expenses. Tax Assessment Ratio 40% Stormwater Fees $0 Tax Parcel ID Number(s) 17-0100-0002-008 Property Tax Rebate $0 8 Other Income Personal Prop/Bus Tax $0 The pro forma Other Income is based on the average of the July 2018 T-3 and T-11 figures. 2017 Total Property Taxes $43,314

15 Property Insurance The pro forma Property Insurance is assumed to be $200/unit. 16 Capital Reserves The pro forma Capital Reserves are based on a typical $250/unit.

52 MULTIFAMILY ADVISORY GROUP

CONFIDENTLY GLOBAL, EXPERTLY LOCAL. The Advisory Group has built a reputation as one of the most dynamic, professional, and hands-on multifamily teams in the industry. With offices located throughout the Southeast, our team is strategically positioned to serve clients across the spectrum of multifamily investments, from institutional to professional equity to private capital investors. Our long- standing super regional approach to the 9 states and 33 markets ensures the team’s coverage and execution model provides clients greater market intelligence and wider market exposure when selling their assets.

$4.8 BILLION MOST 33.5% CLOSED IN 2017 +34.6% #1 ACTIVE #1 MARKET SHARE $15 BILLION YOY GROWTH SOUTHEAST SOUTHEAST 2017-YE IN LAST 5 YEARS IN SALES VOLUME FIRM 2014-2017*

*Market share reflects property volume percent of broker-attributed sales reported to CoStar for AL, Northwest FL, GA, KY, LA, MS, NC, SC and TN

REGIONAL TRANSACTION LEADERS

REGIONAL LOCATIONS ATLANTA • BIRMINGHAM • CHARLOTTE LOUISVILLE • NASHVILLE • NEW ORLEANS • RALEIGH CONFIDENTIALITY STATEMENT This Offering Memorandum (OM) was prepared by (Broker) and has been reviewed by the Owner. The OM is confidential, furnished solely for the purpose of considering the acquisition of the Property described herein, and is not to be used for any other purpose or made available to any other person without the express written consent of Broker. An opportunity to inspect the Property will be made available to qualified prospective purchasers.

The information contained herein has been obtained from sources deemed reliable, and we have no reason to doubt its accuracy. However, no warranty or representation, expressed or implied, is made by the Owner or Broker or any related entity as to the accuracy or completeness of the information contained herein, including but not limited to financial information and projections, and any engineering and environmental information. Prospective purchasers should make their own investigations, projections, and conclusions. It is expected that prospective purchasers will conduct their own independent due diligence concerning the Property, including such engineering inspections as they deem necessary to determine the condition of the Property and the existence or absence of any potentially hazardous materials used in the construction or maintenance of the building(s) or located at the land site, including but not limited to lead-based products (for compliance with “Target Housing” regulation for multifamily housing constructed prior to 1978), asbestos, etc.

The Owner and Broker expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers to purchase the Property and/or terminate discussions with any party at any time with or without notice. The Owner shall have no legal commitment or obligation to any purchaser unless a written agreement for the purchase of the Property has been delivered, approved, and fully executed by the Owner, and any conditions to the Owner’s obligations thereunder have been satisfied or waived. Broker is not authorized to make any representations or agreements on behalf of the Owner. Broker represents the Owner in this transaction and makes no representations, expressed or implied, as to the foregoing matters. The depiction of any persons, entities, signs, logos, or properties (other than Broker’s client and the Property) is incidental only and not intended to connote any affiliation, connection, association, sponsorship, or approval by or between that which is incidentally depicted and Broker or its client.

This OM is the property of Broker and may be used only by parties approved in writing by Broker. The information is privately offered and, by accepting this OM, the party in possession hereon agrees (i) to return it to Broker immediately upon request of Broker or the Owner and (ii) that this OM and its contents are of a confidential nature and will be held and treated in the strictest confidence. No portion of this OM may be copied or otherwise reproduced and/or disclosed to anyone without the written authorization of Broker and Owner. The terms and conditions set forth above apply to this OM in its entirety.

©2018 . All rights reserved. The information contained in this communication is strictly confidential. This information has been obtained from sources believed to be reliable but has not been verified. NO WARRANTY OR REPRESENTATION, EXPRESS OR IMPLIED, IS MADE AS TO THE CONDITION OF THE PROPERTY (OR PROPERTIES) REFERENCED HEREIN OR AS TO THE ACCURACY OR COMPLETENESS OF THE INFORMATION CONTAINED HEREIN, AND SAME IS SUBMITTED SUBJECT TO ERRORS, OMISSIONS, CHANGE OF PRICE, RENTAL OR OTHER CONDITIONS, WITHDRAWAL WITHOUT NOTICE, AND TO ANY SPECIAL LISTING CONDITIONS IMPOSED BY THE PROPERTY OWNER(S). ANY PROJECTIONS, OPINIONS OR ESTIMATES ARE SUBJECT TO UNCERTAINTY AND DO NOT SIGNIFY CURRENT OR FUTURE PROPERTY PERFORMANCE.