The Park at Buckingham

THE PARK AT

BUCKINGHAM 583 UNITS | HOMEWOOD, AL Excellent Value Add Opportunity in A+ Suburb OFFERING TERMS Property is offered on an all-cash basis.

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. TABLE OF CONTENTS

INVESTMENT SUMMARY / PG. 01

PROPERTY DESCRIPTION / PG. 17

LOCATION OVERVIEW / PG. 33

APARTMENT MARKET / PG. 45

FINANCIAL ANALYSIS / PG. 61 THE PARK AT BUCKINGHAM

INVESTMENT SUMMARY

1 INVESTMENT SUMMARY 2 THE PARK AT BUCKINGHAM

INVESTMENT OFFERING INVESTMENT HIGHLIGHTS

The Multifamily Advisory Group is pleased to present the exclusive listing of The Park at Buckingham – 583 units located in Birmingham’s Homewood submarket, which is ranked #2 of Alabama’s top suburbs. Homewood maintains heavy restrictions on new multifamily development, resulting in zero under-construction units and less than 750 delivered units over the past 10 years. Residents at the subject property are afforded easy access to dense cores of quality jobs and upper echelon retail options. Constructed in 1972, The Park at Buckingham features substantial, untapped value add upside within the premier suburban district of Homewood.

THE PARK AT BUCKINGHAM

Address 114 Aspen Circle, Homewood, AL 35209 County Jefferson County School District Homewood City Schools Number of Units 583 Units Year Built 1972 Rentable Area 532,496 SF Avg. Unit Size 913 SF Site Size 33.47 Acres Avg. Market Rent $696 Avg. Market Rent/SF $0.76 Occupancy 94.7%

3 INVESTMENT SUMMARY INVESTMENT HIGHLIGHTS

MASSIVE VALUE ADD POTENTIAL A+ HOMEWOOD MARKET The subject is currently 95% occupied with most Ranked #2 of Alabama’s top suburbs, Homewood recent leases achieving 3%+ above market rents – is heavily sought-after for its highly-ranked school 1 creating space for organic rent growth. The next 4 system, low crime rates, and boutique retail. High investor can push rents and revenue via value add. barriers to entry have escalated property values.

HEAVY OPERATIONAL UPSIDE ACCESS TO JOBS & EDUCATION The Park at Buckingham heavily exceeds The property is approximately 3 miles from comparable properties in Payroll, Insurance, downtown and The University of AL at Birmingham 2 and Utilities expenses. The next investor can add 5 (UAB). UAB has an annual economic impact of over $650k+ to bottom line NOI via expense savings. $7B with over 21,000 jobs.

BOOMING BIRMINGHAM ECONOMY SIGNIFICANT BARRIERS TO ENTRY Birmingham has added 25,000 jobs in the last 5 Homewood heavily restricts new multifamily years and is a focal point of economic growth in zoning and development, resulting in no current or the state. Amazon’s new distribution center is 3 planned construction and rising occupancy. 6 underway and will add 1,500 – 3,000 new jobs.

4 THE PARK AT BUCKINGHAM

1. MASSIVE VALUE ADD POTENTIAL

ROOM TO PUSH RENTS AND REVENUE The subject is currently 95% occupied with most recent leases achieving 3%+ above market rents – creating space for organic rent growth. The next investor can push rents and revenue via value add.

The next investor at The Park at Buckingham will be acquiring an asset with massive upside potential, already proven in the surrounding rental market. The subject lags comparable $5,000 48% $200+ properties in effective rents per month by an average of $190 in Est Cost for Unit Return on Projected 1BR floor plans, $280 in 2BR floor plans, and $300 in 3BR floor Upgrades Investment Premiums plans.

Several adjacent properties have undergone renovations and are The Park at Buckingham has cycled through 3 property management firms during the now achieving considerable rent premiums of $150-$420. With tenure of current ownership. The turnover has deflated occupancy, resident retention, the initiation of a value add campaign, the next investor has the and the asset’s net cash flow. An effective property management team will be able opportunity to increase rental rates across the board and create to leverage the asset’s size, amenities, and location to generate stronger demand and outstanding exit value. streamline operations.

VALUE ADD - MARKET ANALYSIS

$1,050 $289 $1,000 Rent Gap

$950

$900

$850

$800

$750

$700

$650

$600 The Park at Homewood Abbey at Elevation Valora at Marq Vestavia* Average Crescent at Brookwood AVIA* Buckingham Heights Regents Walk Homewood* Homewood* Lakeshore* *Under Renovation

5 INVESTMENT SUMMARY SIGNIFICANT RENTAL PREMIUMS ACHIEVABLE SUCCESSFUL VALUE ADD CAMPAIGNS IN HOMEWOOD

The Park at Buckingham is primed to receive unit upgrades in order to compete at competitive market levels. The subject’s current market gap $419 validates the significant upside through strategic capital improvements. AVIA Post-Reno

Broker recommended upgrades:

• New Interior & Exterior Paint Schemes • Granite Countertops $203 Brookwood Post-Reno • New Windows & Doors • Stainless Appliances

$189 Crescent Lakeshore Post-Reno Envisioned Paint Scheme

$267 Marq Vestavia Post-Reno

$288 Valora Homewood Post-Reno

$153 Elevation Homewood Post-Reno

$167 Homewood Heights Post-Reno

$0 $500 $1,000 $1,500 Market Rent

Post-Reno Pre-Reno

6 THE PARK AT BUCKINGHAM

1. MASSIVE VALUE ADD POTENTIAL (CONTINUED)

UP-TRENDING LEASE TRAJECTORY

The subject is also experiencing an outstanding lease trajectory as loss-to-lease has steadily diminished since 2015. The most recent leases are achieving 3%+ above asking rent which is a drastic improvement over the rent roll average of -2.5%. This positive lease trend underlines the untapped revenue growth potential at The Park at Buckingham.

EMBEDDED ORGANIC RENT GROWTH

The last 75 leases (moved in since July 2018) kick- started the gain-to-lease trend at an average of 0.71% collected rent above asking rates. With the most recent leases achieving 3%+ above asking rates, new management should have room to raise the market rent threshold organically. As this trend continues to bake into the rent roll, Year 1 collections should grow substantially for the next investor.

LEASE TRAJECTORY

3.50%

2.50%

1.50% Lease % -

to 0.50% 0% LTL Rent Roll last 100 Move-Ins Last 75 Move-Ins Last 25 Move-Ins Last 10 Move-Ins Last 5 Move-Ins -0.50% Loss/Gain -

-1.50%

-2.50%

7 INVESTMENT SUMMARY 10 4 7 5 18,333 STUDENTS 4,786 EMPLOYEES 11 1 2 3 23,000 EMPLOYEES (SYSTEM WIDE) 9

8 4,800 JOBS

65 530 JOBS

NEW HOMEWOOD 6 12 E POLICE STATION HQ V A Y $22M PROJECT / BROKE E L L GROUND IN JUNE 2018 A V

THE PARK AT BUCKINGHAM

6 2,200 JOBS

 RETAIL  MAJOR EMPLOYERS  EDUCATION  POINTS OF INTEREST

1. Brookwood Village 2. Brookwood Baptist Medical Center 7. UAB (18,333 Students) 9. Downtown Homewood Target, Macy’s, The 3. Children’s of Alabama (4,800 Jobs) 8. Samford University (5,509 Students) 10. Vulcan Park Fresh Market, DSW, 4. UAB (23,000 Jobs) 11. The Club Books-A-Million 5. St. Vincent’s Birmingham (4,786 Jobs System Wide) 12. New Homewood Police Station 6. Buffalo Rock (2,200 Jobs) Headquarters ($22M Project / Broke Ground in June 2018)

8 THE PARK AT BUCKINGHAM

2. HEAVY OPERATIONAL UPSIDE

OPPORTUNITY TO MITIGATE ABOVE-MARKET EXPENSES The Park at Buckingham heavily exceeds comparable properties in Payroll, Insurance, and Utilities expenses. The next investor can add $650k+ to bottom line NOI via expense savings. $761 $243 $122 $650k+ Net Utilities Payroll Expense Insurance Above Potential Added NOI Above Market/Unit Above Market/Unit Market/Unit via Expense Reduction

EXPENSE COMPS COMP 1 COMP 2 COMP 3 COMP 4 THE PARK AT BUCKINGHAM COMP AVERAGE Location Birmingham Homewoood Birmingham Homewood Homewood - Year Built 1979/1990 1973 1970 1971/2002 1972 1972 Units 176 96 196 219 583 172 Average Unit Size 868 914 837 997 913 907

R&M $621 $505 $538 $495 $774 $541 Payroll 1,141 1,069 888 1,202 1,321 1,078 Utilities Electric 223 139 197 210 334 200 Natural Gas 5 9 0 2 21 3 Water and Sewer 827 491 682 660 800 685 Cable/Internet/Misc. 17 304 14 0 320 51 Trash Removal 9 101 82 56 283 58 Total Utilities 1,081 1,044 975 928 1,758 997 Administrative 239 225 236 526 209 328 Advertising 45 128 200 175 135 142 PM Fee 231 378 282 365 251 309 Taxes 420 572 752 410 836 533 Insurance 260 201 201 129 315 193 Reserves 300 300 300 300 300 300 Total / AVG $4,338 $4,422 $4,372 $4,530 $5,899 $4,421

9 INVESTMENT SUMMARY RECOMMENDATIONS

The next investor in at The Park at Buckingham can substantially boost Net Operating Income by achieving operational efficiencies at the property, which boasts over 580 units. The property’s utilities costs run well-above the market average (+$761). The next investor can add $400k+ via utilities expense reduction alone. The subject also heavily exceeds the market in Payroll expense (+$243/unit), with comparables containing far less units. Other comparable properties are capturing an approximately 64% of combined taxes and insurance costs per unit compared to the subject.

• Streamline personnel on-site • Place targeted capital across the property • Install in energy-efficient plumbing and electrical fixtures

MAJOR SCALE ACHIEVABLE IN HOMEWOOD SUBMARKET

The next investor at The Park at Buckingham has the opportunity to establish a firm foothold in the Homewood submarket. The average Homewood apartment community consists of 215+- units. At 583 units, The Park at Buckingham constitutes nearly 10% of gross apartment supply in Homewood with no new supply in the pipeline.

10 THE PARK AT BUCKINGHAM

3. SIGNIFICANT BARRIERS TO ENTRY 4. A+ HOMEWOOD MARKET

TIGHTENING MARKETS WITH NO NEW DEVELOPMENT Homewood heavily restricts new multifamily zoning and Zero <750 development, resulting in no current or planned construction and Units Units rising occupancy. Under Construction Built in the Last Decade The Park at Buckingham is located within the Homewood submarket, which does not allow for new multifamily zoning. The result is an apartment stock that is decreasing in size and at least ten years old, other than two developments in Downtown Homewood. The Homewood developments were previous multifamily communities that are now re-purposed. DOWNTOWN Thus, there is an inherent value in existing buildings and land, with multifamily communities positioned for rental upside via higher occupancy and rates with the modernization of existing units.

Historical Vacancy has trickled downward over the last 4 years in the MOUNTAIN BROOK submarket, and is expected to continue as a result of limited new supply. US-280 CORRIDOR

HOMEWOOD HISTORICAL VACANCY

7.80%

7.60% VESTAVIA HILLS 7.40%

7.20%

7.00%

6.80% 6.60% HOOVER 6.40%

6.20%

6.00%

5.80% Subject Property Class A Property Heavy multifamily 2014 Q1 2015 Q1 2016 Q1 2017 Q1 development restrictions

11 INVESTMENT SUMMARY 4. A+ HOMEWOOD MARKET

TOP-5 RANKED SUBURB Ranked #2 of Alabama’s top suburbs, Homewood is heavily sought-after for its highly-ranked school system, low crime rates, and boutique retail. High barriers to entry have escalated property values.

BOOMING HOUSING MARKET Downtown Homewood

Arguably the hottest real estate market in the entire state, Homewood has experienced accelerated economic growth and property values due to severe lack of land for development and attractive community aspects. The suburb’s school system is consistently ranked the 2nd best public school district in Alabama.

Homewood’s unemployment rate (2.6%) is ranked the 2nd lowest in Alabama behind neighboring Vestavia Hills and has seen a 30% increase in its public school enrollment over the past 10 years as a younger demographic floods the submarket. 9 Days $600K+ Avg Time on Market Avg New Construction Home Value

Situated just south of Downtown, Homewood offers market-best access TOP 10 ALABAMA SCHOOL DISTRICTS - 2018 to UAB, Samford, Central Business District, upcoming retail/entertainment 1 Mountain Brook 6 Auburn developments downtown, and a wealth of other community amenities. 2 Homewood 7 Muscle Shoals The suburb has transformed into truly one of the most heavily desired 3 Vestavia Hills 8 Enterprise areas in both the metro and entire state of Alabama. 4 Madison 9 Hartselle 5 Hoover 10 Florence

Top 5 #2 #2 Best Suburb to Live in AL Best Suburb for Millennials in AL Best Public School District in AL

*Source for all: Niche, 2018

12 THE PARK AT BUCKINGHAM

5. ACCESS TO JOBS & EDUCATION

CONNECTIVITY TO SURGING DOWNTOWN & UAB The property is approximately 3 miles from downtown Birmingham and The University of Alabama at Birmingham (UAB). UAB is the metro’s #1 economic engine, generating an annual economic impact of over $7B with over 21,000 jobs.

The communities are approximately 3 miles south of Downtown Birmingham, currently experiencing a massive resurgence with over $1 Billion in capital investment since 2014 and key developments such as Railroad Park, Regions Field, the Birmingham-Jefferson Convention Complex (BJCC) $300M renovation, etc. The $300M BJCC upgrade will be anchored by a brand new multipurpose stadium (2020 delivery) and is home to a brand new Topgolf. Approximately 80K jobs are located in Downtown Birmingham.

UAB is an internationally renowned research university and medical center, the core of the Birmingham Metro. UAB serves as the region’s primary economic engine with a whopping $7.15 Billion annual economic impact. UAB is showing solid overall growth in both the medical and educational branches of the campus. Salaries at UAB Hospital alone have increased dramatically over the last year (7.8%), as patient visits and hospital traffic continue to grow.

Located just 4 miles SE of The Park at Buckingham, Samford University is a premier nationally ranked Christian university. The institution enrolls 5,600+ students annually and is ranked the #1 university in AL by the Wall Street Journal.

DOWNTOWN REVITALIZATION Pizitz Building Renovation >> City Market Birmingham-Jefferson Convention Complex >> • Redevelopment began in 2015 to include Entertainment Complex 142 apartments, 11K SF of office, and an • $300 Million renovation entertainment venue • TopGolf, New Football Stadium, and outdoor • Features a food court, boutique retail, office greenspace space, & apartments

Powell Steam Plant Redevelopment >> Historic Ideal Building Renovation >> Retail & Office Retail/Office/Venue Space Space • Alabama Power plans to redevelop the former • Originally was a department store industrial power plant into an entertainment • Sold to an Atlanta investor that plans to and cultural centerpiece redevelop the 25K SF building into Class A • Extensive renovations have been underway retail and office since 2014

Empire Building & Former Alagasco HQ >> Two Thomas Jefferson Hotel Redevelopment >> New Marriott Hotels Historic Apartments • Plans for $27M Empire Hotel with 117 rooms • The 1929 hotel will be converted into 96 Class A historic apartments, 7K SF of retail, and 28K • Alagasco HQ will become an $18M Marriott SF of event space Autograph Collection Hotel with 120 rooms

13 INVESTMENT SUMMARY DOWNTOWN BIRMINGHAM 13 59 1 12 7 11 8 2 5 18,333 STUDENTS 20 3 23,000 EMPLOYEES 4,786 EMPLOYEES HQ 9,000 Jobs 6 (SYSTEM WIDE) 1,466 Jobs 4 10 2,765 JOBS

4,800 JOBS 9

NEW HOMEWOOD POLICE STATION HQ $22M PROJECT / BROKE GROUND IN JUNE 2018 65 14 VE EY A ALL W V THE PARK AT BUCKINGHAM 7

 MAJOR EMPLOYERS  EDUCATION  POINTS OF INTEREST

1. Regions National HQ (9,000 Jobs) 7. UAB (18,333 Students) 8. Downtown Birmingham 2. Wells Fargo (1,466 Jobs) 9. George Ward Park 3. BBVA Compass (2,765 Jobs) 10. Regions Field & Railroad Park 4. Children’s of Alabama (4,800 Jobs) 11. BJCC & TopGolf 5. UAB (23,000 Jobs) 12. Sloss Furnaces 6. St. Vincent’s Birmingham (4,786 Jobs System Wide) 13. Birmingham-Shuttlesworth International Airport 14. New Homewood Police Station Headquarters ($22M Project / Broke Ground in June 2018)

14 THE PARK AT BUCKINGHAM

6. BOOMING BIRMINGHAM ECONOMY

AL’S ECONOMIC FOCAL POINT BIRMINGHAM550,000 EMPLOYMENT TRENDS

Birmingham has added 25,000 jobs in the last 540,000 5 years and is the primary driver of economic 530,000 10K Jobs growth in the state. Amazon’s new distribution Added in the last year center is underway and will add 1,500 – 3,000 520,000 new jobs. 510,000 # OF JOBS Birmingham is the state’s economic engine. 500,000 Economic attributes include being the country’s ninth largest financial center, home to 5 Fortune 490,000 1000 companies, and an expanding start-up tech scene which was recently recognized by Forbes. 480,000 Shipt recently announced another 800+ jobs for the metropolitan area with an average salary of $50K. 470,000 2010 2011 2012 2013 2014 2015 2016 2017 2018

2nd in U.S. for Median Income Growth, +9.4% Wall Street Journal

15 INVESTMENT SUMMARY BIRMINGHAM FAST FACTS MASSIVE CAPITAL INVESTMENT • Birmingham ranked #1 in US for healthcare There are nearly 90,000 jobs and $24.5 Billion in capital investment coming to jobs, 2018 Alabama over the next five years. • Birmingham added 8,000+ jobs in 2016 • Birmingham is the largest city in the state of Alabama is on the upswing, with substantial job growth and business investment scheduled Alabama with a population over 1.2 million for the state over the next five years. Birmingham has constituted a massive chunk of historical • The city is home to five Fortune 1000 growth, representing nearly 1/5 of the state’s job growth. companies: Regions Financials, Protective Life, Vulcan Materials, Encompass Health and Energen GROWTH SINCE 2015 • Birmingham is the country’s ninth leading financial center ALABAMA BIRMINGHAM • The University of AL at Birmingham (UAB), Birmingham’s top employer, will densify 89,000+ New Jobs 17,000+ New Jobs its downtown campus core with a $650M $11.3B Capital Investment $1.7B Capital Investment Master Plan to accommodate UAB’s record enrollment and trending growth (20,902 Birmingham constitutes nearly 1/5 students and 23,000 employees) of Alabama’s job growth since 2015. TWO NEW SPORTS FRANCHISES COMING

A Downtown Renaissance and planned $300M Birmingham-Jefferson Convention Complex (BJCC) upgrades have been massive for the metro, attracting a wealth of new development and two new sports franchises.

• Professional Football Franchise: in 2018, Birmingham announced the capture of a new football franchise. The unnamed team will play in the AAF league (Alliance of American Football) and is scheduled to play its first game in February 2019. The team will play at the new BJCC complex. • Legion FC: Birmingham also recently landed a professional soccer team, dubbed Legion FC. The team will also launch in Feb 2019.

16 THE PARK AT BUCKINGHAM

PROPERTY DESCRIPTION

17 INVESTMENTPROPERTY DESCRIPTION SUMMARY 18 THE PARK AT BUCKINGHAM

PROPERTY SUMMARY Number of Units: 583 Units Year Completed: 1972 Stories: 3 Stories Net Rentable Area: 532,496 SF Average Unit Size: 913 SF

SITE Address 114 Aspen Circle, Homewood, AL 35209 County Jefferson County Size/Density 33.47 Acres / 17.42 Units per Acre West side of I-65 and SW of the 5 Points South community. Location Approximately 3 miles SW of Downtown Birmingham, and 3 miles from Brookwood Mall. Green Springs Hwy: 22,250 VPD Traffic Counts Interstate 65: 104,350 VPD

UTILITIES SERVICE/UTILITY PAID BY HVAC/Hot Water/Cooking Resident Water/Sewer Resident Trash Removal Resident Cable/Internet & Phone Resident Pest Control Resident

19 INVESTMENTPROPERTY DESCRIPTION SUMMARY IMPROVEMENTS Twenty-two residential buildings, clubhouse/office, two Buildings laundry buildings and maintenance building. American Craftsman Style wood-frame buildings on concrete Structures slabs with lightweight concrete upper level subfloors. Exteriors are stacked stone and vinyl/wood. Pitched with wood truss framing and composition shingles. Roofs Gutters and downspouts on all buildings. Open, painted concrete breezeways and upper level Breezeways landings. Studio buildings (11+15) have interior hallways. Stairs are metal with concrete treads and metal railings. Unit entry doors are flat insulated steel. Interior doors are flat Windows/ solid wood. Windows are double-hung in wood frames with Doors horizontal sliders. Sliding doors open to patio/balcony.

SYSTEMS Individual electric heat pump systems with closet-mounted HVAC air handler and exterior pad-mounted condensing unit (roof top). Electric / Gas Units are all electric and individually metered. Cast iron waste lines and copper supply lines. Units are Plumbing equipped with 40-gallon electric water heaters. Buildings are fully sprinklered. Units are equipped with hard- Life Safety wired smoke detectors with battery back-up. Property has fire extinguishers in the units.

INTERIORS 8’ Ceilings; painted walls and ceilings; carpeted, vinyl, and hardie plank living areas; vinyl entry, kitchen, and Finish bathroom floors; ceiling fans. Some are equipped with W/D connections. Wood and laminate cabinets; laminate countertops; frost- free refrigerator with icemaker; electric range/oven with Kitchens overhead microwave oven; dishwasher; and double-bowl stainless steel sink with disposal. Base vanity cabinet; wood and laminate cabinets; laminate countertop with porcelain sink; porcelain commode; Bathrooms fiberglass garden tub/shower and tub/showers with ceramic tile surrounds; vanity mirror; and decorative lighting. 2/2.5 TH floor plans have free-standing shower stalls.

20 THE PARK AT BUCKINGHAM

COMMUNITY AMENITIES • Business Center • Gated • Children’s Playground • Cyber Cafe with Wi-FI Access • Lighted Championship Size Tennis Courts • On-Site Laundry Facilities • Pool Table • Sand Volley Ball Court • Clubhouse with Coffee Bar • Fitness Center • Theater Room • Two Sparkling Pools with Sun Decks

21 INVESTMENTPROPERTY DESCRIPTION SUMMARY 22 THE PARK AT BUCKINGHAM

23 INVESTMENTPROPERTY DESCRIPTION SUMMARY 24 THE PARK AT BUCKINGHAM

UNIT FEATURES • Full Size Washer/Dryer Connections* • Dishwasher* • Ceiling Fan • Refrigerator • 2 California Style Plantation Blinds* • Beveled Mirrors* • Breakfast Bar* • Floating Plank Flooring* • Fully Equipped Contemporary Kitchens* • Gooseneck Faucets* • Ornamental Chair Rails • Private Balcony or Patio • Spacious Walk-In Closets • Two-Tone Colored Interiors*

* Select Units

25 INVESTMENTPROPERTY DESCRIPTION SUMMARY 26 THE PARK AT BUCKINGHAM

27 INVESTMENTPROPERTY DESCRIPTION SUMMARY 28 THE PARK AT BUCKINGHAM

UNIT MIX SUMMARY TYPE # UNITS % UNITS SIZE (SF)* 0 BR / 1 BA 48 8% 491 SF 0 BR / 1 BA 72 12% 491 SF 1 BR / 1 BA 144 25% 800 SF 2 BR / 2 BA 61 10% 936 SF 1 BR / 1.5 BA 14 2% 1,000 SF 2 BR / 1 BA 24 4% 1,000 SF 2 BR / 2 BA 80 14% 1,066 SF 2 BR / 2 BA 110 19% 1,200 SF 3 BR / 2 BA 20 3% 1,400 SF 2 BR / 2.5 BA 10 2% 1,800 SF Total / Avg. 583 Units 913 SF Avg.

*Unit sizes are based on the rent roll. *The property currently has 8 down units under renovation. 491 SF | 491 1 BATH THE ELM | STUDIO, | 800 SF | 1 BEDROOM, BATH THE LAUREL

31 INVESTMENTPROPERTY DESCRIPTION SUMMARY 32 THE PARK AT BUCKINGHAM

LOCATION OVERVIEW

33 INVESTMENTLOCATION OVERVIEW SUMMARY 34 BIRMINGHAM KEY 3 PORTFOLIO | KNOLL CREST & OLYMPIA VILLAGE

BIRMINGHAM BIRMINGHAM, ALABAMA by the numbers

MSA Population - April 2018 1,154,600 Total Employment - 2018 537,700 Unemployment Rate (April 2018) 3.4% Cost of Living Index 97% Cost of Business Index 98% Key Industries: Financial Center, Technology, Life Sciences, Healthcare, Education, Logistics Primary Growth Sectors: Healthcare & Education

AWARDS AND ACCOLADES

• 2018 – Named an up-and-coming Tech Hotspot, Livability • 2018 – Highlands Bar & Grill earns the prestigious James Beard Award as best restaurant in America • 2017 – Ranked one of the top 25 best cities to find a job, glassdoor • 2017 – Ranked among the top 52 Places to Go in 2017, The New York Times • 2017 – Mountain Brook & Vestavia Hills High School ranked among top 10 high schools in Alabama • 2017 - 20th Street tech hub: $1.8 million project to create a hub of medical technology companies in downtown. Estimated to create 200 new well-paying high-tech jobs • 2017 - STERIS/IMS investing $1.6 Million for its Birmingham operations expansion • 2016 - One of Nation’s Best Places to Start a Business, WalletHub

35 INVESTMENTLOCATION OVERVIEW SUMMARY BIRMINGHAM, ALABAMA

SHAPING INTO A SOUTHEASTERN POWERHOUSE ECONOMIC DEVELOPMENT NEWS

Birmingham is the economic focal point of Alabama and largest 2018 city in the seven-county Birmingham-Hoover MSA. • Aviation company Stewart Industries plans to add 500 jobs in the area • Hoover is the likely destination for new Medical West Hospital, 1,000 jobs The metro is located 140 miles west of Atlanta and 90 miles north of Montgomery. With heavy job creation, new entertainment venues taking • Amazon fulfillment center announced for Bessemer, up to 3,000 jobs shape, and professional franchises flocking, Birmingham is in position to become a true southeastern magnet. Since 2015, more than 17,000 2017 new jobs and more than $1.7B in capital investment in 90 projects were • Autocar announces Center Point plant, 750 direct jobs & 1,500 indirect announced in Birmingham, and is becoming a highly desirable destination • Shipt, a growing eCommerce grocer, adds 150 new jobs - Acquired by for both Millennials and new businesses. An affordable tax climate, low Target in $550 Million merger cost of living, and charming overall appeal are trademarks of the metro. • Pack Health, a healthcare management company, adds 175 new jobs Expanding capital investment represents confidence in the Birmingham • Iberia Bank undergoes $24.5M expansion, hires 100 business climate and continued economic growth. 2016 DOWNTOWN BIRMINGHAM • RxBenefits adds 475 jobs to payroll in Birmingham • Flex-n-Gate invests $54M in assembly plant, adds 145 jobs • Gestamp North America announces major $132M investment • Kamtek expands again, $20M with 100 new jobs

2015 • Publix announces expansion, adds 200 jobs in $30M investment • HealthSouth (Encompass Health) expands HQ with $76M, 200 jobs • Kamtek announces $530M expansion, adds 354 jobs • Viva Health renovates downtown headquarters, creating 400 jobs • Wells Fargo hires 300 new employees in Homewood

STATS SINCE 2015 90+ 17,000+ $1.7B Economic Dev. Projects Jobs Added Capital Investment

36 THE PARK AT BUCKINGHAM

WELCOME TO “THE MAGIC CITY” UAB

At the height of the nation’s manufacturing age, the city of Birmingham grew so fast in population, it was dubbed “The Magic City”. Today, it has transformed itself into a medical research, banking and service-based economic engine, making it one of the nation’s most livable cities.

STATE’S LARGEST METRO

Birmingham is the largest metropolitan area in the entire state of Alabama, with a population of 1.2 million. The metro has proven to be the preferred living destination in the entire state, offering the largest employment base, best retail/entertainment amenities, and four of the state’s top 5 school districts.

The city is home to five Fortune 1000 companies: Regions Financials, Protective Life, Vulcan Materials, Encompass Health and Energen. Birmingham is on a swift upward trend, positioning itself to compete with nearby Southeastern metros in attracting Millennials and quality jobs.

As enrollment rises in Alabama colleges, the Birmingham workforce will ST. VINCENT’S continue to strengthen and pave the way for further notable job growth.

AMAZON COMING TO BIRMINGHAM

A new Amazon fulfillment center is under construction Birmingham, which is the last major metro to not already host the retail giant. The development is projected to add anywhere from 1,500 to 3,000 new jobs for the area. The development, nicknamed Project Bluebird, is one of the largest economic development wins for Birmingham in the last decade. The Birmingham City Council has already approved significant tax credit incentives for the development.

1,500+ Possible new jobs from Amazon fulfillment center

37 INVESTMENTLOCATION OVERVIEW SUMMARY FINANCIAL DISTRICT REGIONS BANK HEADQUARTERS

With a 2015 annual average employment of nearly 43,000 in the Financial Activities sector, the city is a major exporter of banking and insurance processing services. According to the Federal Reserve, Birmingham has nearly $220B in bank assets, ranking it as the second largest banking center in the South and 9th nationally.

In addition to being the corporate headquarters for Regions Financial Corporation, BBVA Compass, Cadence Bank and ServisFirst Bank, the metro area serves as the corporate headquarters for major insurance companies, such as Infinity Auto Insurance, Protective Life Corporation, and Blue Cross Blue Shield of Alabama. More than 30 banking and insurance companies have back-office operations in the region, including State Farm Insurance, Wells Fargo and Allstate. Birmingham also serves as one of four regional processing center for the U.S. Social Security Administration.

TOP EMPLOYERS 560 BIRMINGHAM560 EMPLOYMENT TRENDS COMPANY # 5OF50 JOBS 550

UAB ) 21,245 ) 540 540 Regions Financial Corporation 9,000 00's 530 00's 530 Children's of Alabama 4,800

St. Vincent’s Health System nt (0 5204,786 nt (0 520

Baptist Health System, Inc. me 5104,633 me 510

AT&T oy 4,517 oy 500 500 Honda Manufacturing of Alabama 4,500 mpl mpl

E 490 E 490

Alabama Power Co. l 3,982 l

*Source: Birmingham Business Alliance, July 2017 ta 480 ta 480 o o T T 470 470 460 460 2006 2007 2008 20092006 20102007 20112008 20122009 20132010 20142011 20120125 20120136 20172014 2012018 5 20192016 2017 2018 2019

38 THE PARK AT BUCKINGHAM

RENOWNED HEALTHCARE CENTER CHILDREN’S OF ALABAMA

Healthcare is highly specialized in Birmingham and employs 62,300 regionally, anchored by UAB University Hospital, the largest in Alabama and third largest in the nation.

The most prominent regional medical centers include: St. Vincent’s Hospital (4,786 employed), Children’s Health System (4,800), and UAB Health Services Foundation (2,800). In 2016, Baptist Health System and Brookwood Medical Center merged, creating the largest health care network in Alabama. Now named Brookwood Baptist Health, it encompasses five hospitals, one freestanding emergency department, 77 outpatient offices and more than 1,300 doctors. It is estimated that Brookwood Baptist employs over 5,000 employees.

GRANDVIEW MEDICAL CENTER

The $280M 372-bed Grandview Medical Center on Hwy 280 opened in Fall 2015. This 1.6M SF facility comprises one of the most technologically advanced medical facilities in the country, with state-of-the-art imaging systems and surgical suites outfitted with robotic and microscopic technologies. Activities related what has been dubbed the “AL Mega GRANDVIEW MEDICAL CENTER Project” have generated 3,931 jobs and $125M+ in earnings. The facility will employ 5,500 and have an estimated regional economic impact totaling 9,000+ jobs and $405M in earnings. The facility has already spawned additional supportive medical facilities and commercial services along the Highway 280 corridor.

OTHER SIGNIFICANT HEALTHCARE DEVELOPMENTS:

(1) Children’s of Alabama’s 2012 opening of their $400M, 760,000 SF Benjamin Russell Hospital for Children (BRHFC) represented the largest single medical facility expansion project in Alabama history. As the third- largest pediatric hospital in the country and the state’s only freestanding pediatric hospital, the 332-bed facility includes 48 neonatal intensive care unit (NICU) bassinets.

(2) Birmingham is a veritable hub for sports medicine, orthopedics, and physical therapy. Andrews Sports Medicine on the campus of St. Vincent’s Hospital has treated such superstar athletes as Bo Jackson and Jack Nicklaus.

39 INVESTMENTLOCATION OVERVIEW SUMMARY UNIVERSITY OF ALABAMA AT BIRMINGHAM (UAB) Encompassing 83 downtown Birmingham city blocks, the 42,000 University of Alabama Birmingham (UAB) ranks as Alabama’s Total Number of Jobs and Students at UAB largest employer, with a job force of 21,245 and 20,902 students. The hospital/college combo is responsible for more than 64,000 indirect jobs.

An estimated 10% of the jobs in the Birmingham-Hoover MSA and 1 in 33 UAB’S $65M 2020 MASTER PLAN: jobs in the state are directly or indirectly related to UAB. In 2017 Forbes Parkside District 15th Street Corridor, an expanded College of Nursing, new named UAB a top 75 “Large Employer” in the US and No. 5 among athletic facilities, Collat School of Business and Institute for Innovation, and universities. UAB’s received a ranking of 69 on the country’s top large a 1,200-vehicle parking structure. A new $35M, 159K SF student center and employers, a list that is reserved for companies who employ more than $46M, 714-bed residence hall opened in Fall 2015. 5,000 people. UAB has an annual economic impact exceeding $7 billion in the state of Alabama. SECOND CONSECUTIVE YEAR OF RECORD ENROLLMENT

With rising hospital activity over the last year, UAB has generated year- UAB has achieved a second consecutive year of record-breaking student over-year 4% total salaries growth for its employees (7.8% at UAB Hospital enrollment, with 20,902 total students in Fall 2017 (7% growth since 2016). individually). The hospital is ranked #1 in Alabama according to US News & The Birmingham Business Alliance has calculated that, for every 1,000 new World Report 2018. UAB students, $50M is added annually to the school’s economic impact.

UNIVERSITY OF ALABAMA BIRMINGHAM

40 THE PARK AT BUCKINGHAM

DOWNTOWN EMERGING

The many cranes dotting the downtown skyline today will be replaced by hundreds of hotel rooms, new residences, greenspaces and event venues. Birmingham is now a major attractor for a huge generation of urban-focused millennials seeking urban entertainment & lifestyle.

REGIONS FIELD, RAILROAD PARK, & ROTARY TRAIL REGIONS FIELD

Home field for the Birmingham Barons minor league baseball team, the 8,500-seat Regions Field opened in 2013 and has become a catalyst for development in the surrounding area. Local partners are incorporating branding, signage, and pedestrian right-of-ways in the 30-block adjacent Parkside District to promote the Live-Work-Play concept to attract new retailers, restaurants, entertainment venues, and creative office spaces.

Parkside is one of the metro’s fastest growing districts. The district abuts Railroad Park, 19 acres of greenspace that celebrates the industrial and artistic heritage of Birmingham. The park was recently named by Care2.com as one of six “Urban Green Areas That Are Revitalizing U.S. Cities.” Home to 600 trees, three skate bowls, and the Birmingham History Wall, the park is also the 2012 winner of the Urban Land Institute’s Open Space Award.

Considered an extension of the park, Rotary Trail, from 20th-24th Streets along 1st Avenue South, is a greenway through downtown with walking paths, benches, landscaping, lighting, boardwalks, an amphitheater and a 46-foot sign modeled after the historic “Birmingham the Magic City” sign. ROTARY TRAIL The trail is just one segment of a greenway that will ultimately connect the CrossPlex venue in Five Points West to Sloss Furnaces near the city center.

RAILROAD PARK

41 INVESTMENTLOCATION OVERVIEW SUMMARY BIRMINGHAM-JEFFERSON CONVENTION COMPLEX (BJCC)

BIRMINGHAM-JEFFERSON CONVENTION COMPLEX (BJCC) WILL BE A GAME-CHANGER

The Birmingham-Jefferson Convention Complex (BJCC) is set to receive a $300M upgrade that will be anchored by a brand new multipurpose stadium (2020 delivery). The development is situated in the $70M Uptown District, also home to a brand new Topgolf. The project has already helped attract two sports franchises.

The BJCC is Birmingham’s premier entertainment district, a massive mixed- TWO NEW SPORTS FRANCHISES COMING use development featuring Legacy Arena, two hotels, the $70M Uptown The planned BJCC renovations have already been massive for the metro, District, convention halls, and a brand new Top Golf delivered in 2017. The attracting a professional football franchise and soccer franchise. BJCC attracts major events and concerts throughout the year, and is an icon of the metro’s typical weekend outing. • Professional Football Franchise: in 2018, Birmingham announced the capture of a new football franchise. The unnamed team will play in the In March 2018, The Birmingham City Council approved funding for a AAF league (Alliance of American Football) and is scheduled to play its $300M upgrade to the BJCC. The project, expected to start construction first game in February 2019. The team will play at the new BJCC complex. in 2019, will be anchored by an open-air stadium. Expected to be a massive game-changer for Downtown and Birmingham as a whole, the • Legion FC: Birmingham also recently landed a professional soccer team, dubbed Legion FC. The team will also launch in February 2019. development is expected to be equivalent to Atlanta’s “The Battery”.

42 THE PARK AT BUCKINGHAM

THE STATE’S MAIN RETAIL DESTINATION RIVERCHASE GALLERIA MALL

Birmingham boasts nearly 15 million total square feet of quality retail space, providing residents with access to major name brand stores and a wide array of dining amenities.

THE SUMMIT

The Summit serves as the premier retail hotspot of the Birmingham metro, the area’s true pillar for lifestyle and fashion. Built in 1997 and boasting one million square feet of retail space, the high end mixed-use center offers an attractive combination of both big box retail, boutique vendors, and up- and-coming dining options.

The Summit has bucked the national retail trend and maintained outstanding occupancy over the past decade (98%). Notable tenants include Apple, Belk, Trader Joe’s, Barnes & Noble, Saks 5th Avenue, Bed Bath & Beyond, Pottery Barn, Lululemon, Brooks Brothers, and West Elm.

THE SUMMIT HOOVER’S RETAIL HUB Riverchase Village, Riverchase Promenade, Riverchase Galleria Mall, and Patton Creek are located in the Hoover submarket. Riverchase Galleria Mall, which has over 1.9 million square feet of retail shopping space, is the largest shopping center in the Greater Birmingham area and is the 29th largest in the country. The mall recently underwent a $75M renovation. Adjacent to the Galleria is Patton Creek, a 600,000 SF retail development inclusive of specialty shops, restaurants, and a 15-screen IMAX movie theater. Construction began in April 2015 on the area’s newest tenant, Whole Foods, which recently opened to the public.

TATTERSALL PARK (UPCOMING)

EBSCO, in conjunction with RBY Retail, has revived plans for a 75-acre mixed use development on US-280. Upon completion, the project will include 375,000 SF of retail space, 80,000 SF of mid-rise office space, and a 254,000 SF, 200-room hotel. This development will be a major game changer for the US-280 corridor and South Birmingham. Growth in the metro is pointing “over-the-mountain”, and Tattersall Park will enhance the local economy and attract more residents to the area.

43 INVESTMENTLOCATION OVERVIEW SUMMARY EXCEPTIONAL TRANSPORTATION INFRASTRUCTURE Birmingham’s central regional location is a major catalyst for economic growth. Served by four rail freight carriers, Amtrak passenger service, five interstates (I-20, I-22, I-59, I-65 and I-459), more than 100 truck lines, five air cargo companies and seven barge lines, Birmingham is among the most accessible business centers in the nation.

The U.S. 280 Corridor is one of the most highly traveled non-interstate BIRMINGHAM-SHUTTLESWORTH INTERNATIONAL AIRPORT roadways in Birmingham, with average daily traffic estimated at 89,500 vehicles. Other major highways in the area include Interstate-459, I-20, I-65, and I-22. This network provides connectivity to the entire Southeastern region, and has paved the way for major auto job growth.

In 2014, the Birmingham-Shuttlesworth International Airport, which handles three million passengers per year, completed Phase II of Air Cargo expansion and the end of runway 6-24. The 12,000-foot runway accommodates a fully loaded and fully fueled 747 cargo aircraft taking off on a nonstop overseas flight. The airport has continued to see steady growth in overall passenger traffic, and recently added Frontier Airlines to its list of tenants..

DOWNTOWN BIRMINGHAM

44 THE PARK AT BUCKINGHAM

APARTMENT MARKET

45 INVESTMENTAPARTMENT MARKETSUMMARY 46 THE PARK AT BUCKINGHAM

RENT COMPARABLES SUMMARY RENT COMPARABLES THE PARK AT BUCKINGHAM 5

3 4

RENT COMPARABLES PROPERTY # UNITS YEAR BUILT OCCUPANCY AVG. SF MKT. RENT EFF. RENT EFF. RENT/SF The Park at Buckingham 583 1972 95% 913 $690 $682 $0.75 1 Homewood Heights 96 1973 97% 914 $823 $823 $0.90 2 Abbey at Regents Walk 219 1971 100% 997 $901 $901 $0.90 3 Crescent at Lakeshore* 220 1965 TBD 929 $1,026 $1,026 $1.10 4 Elevation Homewood* 198 1972 TBD 1,107 $1,019 $934 $0.84 5 Valora at Homewood* 722 1969 TBD 1,080 $969 $969 $0.90 6 Brookwood 274 1968 94% 1,049 $1,130 $1,115 $1.06 7 AVIA* 163 1975 TBD 1,253 $1,355 $1,355 $1.08 8 Marq Vestavia* 170 1973 TBD 923 $1,036 $971 $1.05 TOTAL / AVG 294 1971 97% 1,018 $995 $976 $0.96 * Under Renovation * Under Renovation 47 INVESTMENTAPARTMENT MARKETSUMMARY

Broker THE PARK AT BUCKINGHAM

THE PARK AT BUCKINGHAM 114 Aspen Circle UNIT MIX Birmingham, AL 35209 UNIT TYPE # UNITS SIZE (SF) MKT. RENT EFF. RENT EFF. RENT/SF Jefferson County 0BR-1BA 48 491 $484 $482 $0.98 Total Units: 583 0BR-1BA, R 72 491 $504 $500 $1.02 Year Built: 1972 1BR-1BA 144 800 $638 $626 $0.78 Rentable Area (SF): 532,496 1BR-1.5BA, TH 14 1,000 $734 $733 $0.73 Occupancy: 95% 2BR-1BA 61 936 $754 $747 $0.80 Managed by Arlington Properties, Inc. 2BR-1BA 24 1,000 $714 $707 $0.71 2BR-2BA 80 1,066 $714 $707 $0.66 2BR-2BA 110 1,200 $804 $800 $0.67 UNIT FEATURES COMMUNITY AMENITIES 2BR-2.5BA, TH 10 1,800 $1,039 $1,035 $0.58 Breakfast Bar/Pass-Through* Clubhouse/Leasing Center 3BR-2BA 20 1,400 $1,064 $1,044 $0.75 Cable & Internet Ready Fitness Center Entry Foyer with Closet* Games/Billiards TOTAL / AVG 583 913 $690 $682 $0.75 Fully Equipped Kitchens Grilling/Picnic Area(s) Kitchen Pantry* Homewood School System Patio or Balcony Laundry Facility (2) Separate Bath Vanity Area* Media/Entertainment Lounge (with COMMENTS UTILITIES surround sound) Separate Dining Area* The property was recently offering TYPE PAID BY Playground W/D Connections* concessions for new move-ins but has Resident Business Center since discontiued all leasing specials. Electric Resident Walk-In Closets* (most) Swimming Pool (2; one Olympic) Water and Sewer Resident Window Blinds WiFi Available Natural Gas Resident * Select Units Trash Removal Resident

UNIT MIX BREAKDOWN

3 BR 0 BR 3% 2 1%

2 BR 49% 1 BR 27%

48 THE PARK AT BUCKINGHAM THE PARK AT BUCKINGHAM

1 HOMEWOOD HEIGHTS 403 Edgecrest Drive UNIT MIX Homewood, AL 35209 UNIT TYPE # UNITS SIZE (SF) MKT. RENT EFF. RENT EFF. RENT/SF Jefferson County 1BR-1BA, - R 40 850 $760 $760 $0.89 Total Units: 96 2BR-1BA, - R 48 950 $830 $830 $0.87 Year Built: 1973 3BR-2BA, - R 8 1,020 $1,090 $1,090 $1.07 Rentable Area (SF): 87,760 TOTAL / AVG 96 914 $823 $823 $0.90 Occupancy: 97%

Managed by S&S Property Management

COMMENTS UTILITIES UNIT FEATURES COMMUNITY AMENITIES Fully renovated units besides 25% that TYPE PAID BY Brushed Nickel Finishes Business Center have not turned in the last 5 years. Mandatory fee of $85 includes W&S, trash, Electric Resident Faux Granite Countertops Coffee & Tea Bar & pest. $25 premium for W/D connections. Water and Sewer Resident Fully Equipped Kitchens Homewood School System Large Closets Laundry Facility Natural Gas None New Appliances* New Fitness Center Trash Removal Property Tile Shower Surrounds On-Site Management Team W/D Connections Swimming Pool Walk-In Closets UNIT MIX BREAKDOWN Wood-Style Laminate Floors

3 BR 8% 1 BR 42%

2 BR 50%

49 INVESTMENTAPARTMENT MARKETSUMMARY THE PARK AT BUCKINGHAM

2 ABBEY AT REGENTS WALK 726 Raleigh Court UNIT MIX Birmingham, AL 35209 UNIT TYPE # UNITS SIZE (SF) MKT. RENT EFF. RENT EFF. RENT/SF Jefferson County 1BR-1BA 40 700 $769 $769 $1.10 Total Units: 219 1BR-1BA 50 800 $792 $792 $0.99 Year Built: 1971 2BR-2BA 50 1,050 $895 $895 $0.85 Rentable Area (SF): 218,360 2BR-2BA 60 1,200 $999 $999 $0.83 Occupancy: 100% 3BR-2BA 16 1,300 $1,149 $1,149 $0.88 Managed by Abbey Residential 3BR-2BA, Suite 2 1,680 $1,312 $1,312 $0.78 3BR-2.5BA, TH 1 1,700 $1,285 $1,285 $0.76 TOTAL / AVG 219 997 $901 $901 $0.90 UNIT FEATURES COMMUNITY AMENITIES Breakfast Bar/Pass-Through* Clubhouse/Leasing Center Crown Molding Conference Room Fully Equipped Kitchens Games/Party Room COMMENTS UTILITIES Kitchen Pantry* Homewood School System All units are fully renovated. An amenity Patio or Balcony Laundry Facility TYPE PAID BY package that includes cable, trash, & pest Separate Dining Area* Media/Entertainment Lounge for $52 is mandatory and added onto rent. Electric Resident W/D Appliances Included Resident Business Center Water and Sewer Resident (stacked; 1050 SF only) Swimming Pool Natural Gas Resident W/D Connections Walk-In Closets Trash Removal Resident

* Select Units UNIT MIX BREAKDOWN

3 BR 9% 1 BR 4 1%

2 BR 50%

50 THE PARK AT BUCKINGHAM THE PARK AT BUCKINGHAM

3 CRESCENT AT LAKESHORE 1 Rue Maison UNIT MIX Birmingham, AL 35209 UNIT TYPE # UNITS SIZE (SF) MKT. RENT EFF. RENT EFF. RENT/SF Jefferson County 2BR-1BA 48 810 $935 $935 $1.15 Total Units: 220 2BR-1.5BA 52 812 $965 $965 $1.19 Year Built: 1965 2BR-2BA 51 960 $978 $978 $1.02 Rentable Area (SF): 204,464 2BR-2BA 37 992 $1,025 $1,025 $1.03 Occupancy: TBD 3BR-2BA 32 1,178 $1,340 $1,340 $1.14 Managed by Farris Properties TOTAL / AVG 220 929 $1,026 $1,026 $1.10

UNIT FEATURES COMMUNITY AMENITIES FF Refrigerator w/Icemaker* Business Center COMMENTS UTILITIES Frost-Free Refrigerator Clubhouse/Leasing Center Under complete renovation. TYPE PAID BY Fully Equipped Kitchens Fitness Center Laundry/Utility Room* Homewood School System Electric Resident Patio or Balcony (most) Laundry Facility Water and Sewer None W/D Appliances Included On-Site Maintenance Team Natural Gas Resident (stackable, select units) Playground Trash Removal Resident W/D Connections* Resident Business Center Walk-In Closets* Swimming Pool

* Select Units UNIT MIX BREAKDOWN

3 BR 15 %

2 BR 85%

51 INVESTMENTAPARTMENT MARKETSUMMARY THE PARK AT BUCKINGHAM

4 ELEVATION HOMEWOOD 1301 Lakeshore Place UNIT MIX Birmingham, AL 35209 UNIT TYPE # UNITS SIZE (SF) MKT. RENT EFF. RENT EFF. RENT/SF Jefferson County 1BR-1BA 28 825 $870 $798 $0.97 Total Units: 198 2BR-2BA 96 1,050 $975 $894 $0.85 Year Built: 1972 2BR-2BA 24 1,150 $1,025 $940 $0.82 Rentable Area (SF): 219,200 2BR-2.5BA, TH 36 1,200 $1,175 $1,077 $0.90 Occupancy: TBD 3BR-2.5BA, TH 14 1,750 $1,210 $1,109 $0.63 Managed by Elmington Capital TOTAL / AVG 198 1,107 $1,019 $934 $0.84 Group/Elmington Management

UNIT FEATURES COMMUNITY AMENITIES Cable & Internet Ready Clubhouse/Leasing Center COMMENTS UTILITIES Fully Equipped Kitchens Controlled Access Gates The property is wrapping up renovations, TYPE PAID BY Patio or Balcony Fitness Center thus 85% occupancy. Units have garnered Separate Bth Vanity Area* Homewood School System $180-$350 rent premiums depending on Electric Resident Separate Dining Area* Laundry Facility floor plan. Currently offering 1 month free. Water and Sewer None W/D Connections (all but 1BRs) Picnic Area Natural Gas Resident Walk-In Closets* Resident Business Center Trash Removal Resident Walk-In Shower* Swimming Pool Window Blinds UNIT MIX BREAKDOWN * Select Units

3 BR 1 BR 7% 14 %

2 BR 79%

52 THE PARK AT BUCKINGHAM THE PARK AT BUCKINGHAM

5 VALORA AT HOMEWOOD 915 Valley Ridge Drive UNIT MIX Homewood, AL 35209 UNIT TYPE # UNITS SIZE (SF) MKT. RENT EFF. RENT EFF. RENT/SF Jefferson County 1BR-1BA 77 725 $795 $795 $1.10 Total Units: 722 1BR-1BA 84 740 $795 $795 $1.07 Year Built: 1969 1BR-1BA 84 800 $815 $815 $1.02 Rentable Area (SF): 779,785 1BR-1BA 41 900 $795 $795 $0.88 Occupancy: TBD 1BR-1BA 20 1,075 $895 $895 $0.83 Managed by Lurin Capital 2BR-1BA 80 1,075 $975 $975 $0.91 2BR-1BA 90 1,100 $935 $935 $0.85 2BR-2BA 80 1,130 $975 $975 $0.86 UNIT FEATURES COMMUNITY AMENITIES 2BR-2BA 30 1,200 $1,075 $1,075 $0.90 Breakfast Bar/Pass-Through* Car Care Center (2) 2BR-2BA 26 1,450 $1,125 $1,125 $0.78 Built-In Wet Bar* Clubhouse/Leasing Center Ceramic Tile Flooring (kitchen, Fitness Center 2BR-2.5BA, TH 52 1,450 $1,255 $1,255 $0.87 baths) Homewood School System (& 2BR-2.5BA, TH 8 1,650 $1,450 $1,450 $0.88 Fully Equipped Kitchens Birmingham) 3BR-2BA 20 1,850 $1,475 $1,475 $0.80 Kitchen Pantry* Laundry Facility 3BR-2.5BA, TH 23 2,050 $1,475 $1,475 $0.72 Laundry/Utility Room* Playground 3BR-2.5BA, TH 7 2,050 $1,575 $1,575 $0.77 Patio or Balcony Swimming Pool (2) Separate Bth Vanity Area* Tennis Courts (2, lighted) TOTAL / AVG 722 1,080 $969 $969 $0.90 Separate Dining Area (all but 1BRs) W/D Connections Walk-In Closets Window Blinds COMMENTS UTILITIES Under complete renovation. TYPE PAID BY * Select Units Electric Resident Water and Sewer Resident Natural Gas Resident Trash Removal Resident

THE PARK AT BUCKINGHAM UNIT MIX BREAKDOWN

3 BR 7% 1 BR 42% 2 BR 5 1%

53 INVESTMENTAPARTMENT MARKETSUMMARY THE PARK AT BUCKINGHAM

6 BROOKWOOD 3450 Manor Drive UNIT MIX Birmingham, AL 35209 UNIT TYPE # UNITS SIZE (SF) MKT. RENT EFF. RENT EFF. RENT/SF Jefferson County 1BR-1BA 29 650 $870 $855 $1.32 Total Units: 274 1BR-1BA 30 750 $890 $875 $1.17 Year Built: 1968 1BR-1BA 43 850 $1,155 $1,140 $1.34 Rentable Area (SF): 287,500 2BR-1BA 52 1,050 $1,130 $1,115 $1.06 Occupancy: 94% 2BR-2BA 80 1,250 $1,225 $1,210 $0.97 Managed by US Residential Group 3BR-2BA 30 1,350 $1,275 $1,260 $0.93 3BR-2BA 10 1,450 $1,290 $1,275 $0.88 TOTAL / AVG 274 1,049 $1,130 $1,115 $1.06 UNIT FEATURES COMMUNITY AMENITIES Breakfast Bar or Island (750 SF) Clubhouse/Leasing Center (two- story) Ceramic Tile Flooring (kitchen, baths) Fitness Center (with playroom) Crown Molding Homewood School System COMMENTS UTILITIES Double-Sink Vanity (1,050 SF) Laundry Facility (2) No current leasing specials. TYPE PAID BY Entry Foyer with Closet* Playground Electric Resident French Doors Resident Business Center (with conf. area) Water and Sewer Resident Fully Equipped Kitchens Swimming Pool (3) Natural Gas Resident Patio or Balcony Valet Trash Service Separate Bth Vanity Area* Trash Removal Resident Separate Dining Area* Stainless Steel Appliances W/D Connections* UNIT MIX BREAKDOWN Walk-In Closets Window Blinds (2")

Wood Flooring Available (main 3 BR living area) 15 % 1 BR 37% * Select Units

2 BR 48%

54 THE PARK AT BUCKINGHAM THE PARK AT BUCKINGHAM

7 AVIA 1922 Tree Top Lane UNIT MIX Vestavia Hills, AL 35216 UNIT TYPE # UNITS SIZE (SF) MKT. RENT EFF. RENT EFF. RENT/SF Jefferson County 1BR-1BA 23 728 $995 $995 $1.37 Total Units: 163 2BR-1BA 25 1,035 $1,275 $1,275 $1.23 Year Built: 1975 2BR-1.5BA, TH 23 1,280 $1,285 $1,285 $1.00 Rentable Area (SF): 204,171 2BR-2BA 23 1,118 $1,240 $1,240 $1.11 Occupancy: TBD 2BR-2BA, TH 23 1,440 $1,525 $1,525 $1.06 Managed by Arlington Properties, Inc. 3BR-2BA 23 1,484 $1,325 $1,325 $0.89 3BR-2.5BA, TH 23 1,702 $1,850 $1,850 $1.09 TOTAL / AVG 163 1,253 $1,355 $1,355 $1.08 UNIT FEATURES COMMUNITY AMENITIES Ceiling Fans Business/Leasing Office Granite Countertops Clubhouse Patio or Balcony* Coffe Bar COMMENTS UTILITIES Patio/Balcony Grill Area Property did not renew any new leases in Separate Bth Vanity Area* On-Site Maintenance TYPE PAID BY order to fully renovate. 40% of units have Sunken Living Room* On-Site Manager been renovated and are back online. Rents Electric Resident W/D Appliances Pet Play Area are based on renovated rates. Water and Sewer Property Walk-In Closets* Pool Table Natural Gas Resident Window Blinds Saltwater Swimming Pool Trash Removal Resident Vestavia Hills Schools * Select Units

UNIT MIX BREAKDOWN

1 BR 3 BR 14 % 28%

2 BR 58%

55 INVESTMENTAPARTMENT MARKETSUMMARY THE PARK AT BUCKINGHAM

8 MARQ VESTAVIA 1800 Arboretum Circle UNIT MIX Birmingham, AL 35216 UNIT TYPE # UNITS SIZE (SF) MKT. RENT EFF. RENT EFF. RENT/SF Jefferson County 1BR-1BA 48 702 $899 $834 $1.19 Total Units: 170 2BR-1BA 81 933 $1,019 $954 $1.02 Year Built: 1973 2BR-1.5BA, TH 9 1,184 $1,099 $1,034 $0.87 Rentable Area (SF): 156,917 3BR-2BA 32 1,156 $1,269 $1,204 $1.04 Occupancy: TBD TOTAL / AVG 170 923 $1,036 $971 $1.05 Managed by Springer Capital LLC

UNIT FEATURES COMMUNITY AMENITIES COMMENTS UTILITIES Ceiling Fans 24-Hour Fitness Center Property is currently under complete TYPE PAID BY Dishwasher Clubhouse/Leasing Center renovatoin. Rents are based on renovated Electric Resident Granite Countertops Coffee Bar rates. Offering 1 month free with a 12 month lease. New French Doors Grilling Area Water and Sewer Resident New Windows Laundry Facility Natural Gas Resident Oversized Closets Sun Deck Trash Removal Resident Patio or Balcony Swimming Pool Stainless Steel Appliances Vestavia Hills Schools W/D Appliances* UNIT MIX BREAKDOWN W/D Connections

* Select Units 3 BR 1 BR 19 % 28%

2 BR 53%

56 THE PARK AT BUCKINGHAM THE PARK AT BUCKINGHAM SSTUTUDDIOIO

RANKED BY RENT PER UNIT RANKED BY RENT PER UNIT /SF PROPERTY UNIT TYPE SIZE (SF) EFF. RENT RENT /SF PROPERTY UNIT TYPE SIZE (SF) EFF. RENT RENT /SF The Park at Buckingham 0BR-1BA, R 491 $500 $1.02 The Park at Buckingham 0BR-1BA, R 491 $500 $1.02 The Park at Buckingham 0BR-1BA 491 $482 $0.98 The Park at Buckingham 0BR-1BA 491 $482 $0.98 TOTAL / AVG 491 $491 $1.00 TOTAL / AVG 491 $491 $1.00

OONENE B BEDROOMEDROOM

RANKED BY RENT PER UNIT RANKED BY RENT PER UNIT /SF PROPERTY UNIT TYPE SIZE (SF) EFF. RENT RENT /SF PROPERTY UNIT TYPE SIZE (SF) EFF. RENT RENT /SF Brookwood 1BR-1BA 850 $1,140 $1.34 AVIA 1BR-1BA 728 $995 $1.37 AVIA 1BR-1BA 728 $995 $1.37 Brookwood 1BR-1BA 850 $1,140 $1.34 Valora at Homewood 1BR-1BA 1,075 $895 $0.83 Brookwood 1BR-1BA 650 $855 $1.32 Brookwood 1BR-1BA 750 $875 $1.17 Marq Vestavia 1BR-1BA 702 $834 $1.19 Brookwood 1BR-1BA 650 $855 $1.32 Brookwood 1BR-1BA 750 $875 $1.17 Marq Vestavia 1BR-1BA 702 $834 $1.19 Abbey at Regents Walk 1BR-1BA 700 $769 $1.10 Valora at Homewood 1BR-1BA 800 $815 $1.02 Valora at Homewood 1BR-1BA 725 $795 $1.10 Elevation Homewood 1BR-1BA 825 $798 $0.97 Valora at Homewood 1BR-1BA 740 $795 $1.07 Valora at Homewood 1BR-1BA 725 $795 $1.10 Valora at Homewood 1BR-1BA 800 $815 $1.02 Valora at Homewood 1BR-1BA 740 $795 $1.07 Abbey at Regents Walk 1BR-1BA 800 $792 $0.99 Valora at Homewood 1BR-1BA 900 $795 $0.88 Elevation Homewood 1BR-1BA 825 $798 $0.97 Abbey at Regents Walk 1BR-1BA 800 $792 $0.99 Homewood Heights 1BR-1BA, - R 850 $760 $0.89 Abbey at Regents Walk 1BR-1BA 700 $769 $1.10 Valora at Homewood 1BR-1BA 900 $795 $0.88 Homewood Heights 1BR-1BA, - R 850 $760 $0.89 Valora at Homewood 1BR-1BA 1,075 $895 $0.83 The Park at Buckingham 1BR-1.5BA, TH 1,000 $733 $0.73 The Park at Buckingham 1BR-1BA 800 $626 $0.78 The Park at Buckingham 1BR-1BA 800 $626 $0.78 The Park at Buckingham 1BR-1.5BA, TH 1,000 $733 $0.73 TOTAL / AVG 806 $830 $1.05 TOTAL / AVG 806 $830 $1.05

57 INVESTMENTAPARTMENT MARKETSUMMARY THE PARK AT BUCKINGHAM TTWWOO B BEDROOMEDROOM

RANKED BY RENT PER UNIT RANKED BY RENT PER UNIT /SF PROPERTY UNIT TYPE SIZE (SF) EFF. RENT RENT /SF PROPERTY UNIT TYPE SIZE (SF) EFF. RENT RENT /SF AVIA 2BR-2BA, TH 1,440 $1,525 $1.06 AVIA 2BR-1BA 1,035 $1,275 $1.23 Valora at Homewood 2BR-2.5BA, TH 1,650 $1,450 $0.88 Crescent at Lakeshore 2BR-1.5BA 812 $965 $1.19 AVIA 2BR-1.5BA, TH 1,280 $1,285 $1.00 Crescent at Lakeshore 2BR-1BA 810 $935 $1.15 AVIA 2BR-1BA 1,035 $1,275 $1.23 AVIA 2BR-2BA 1,118 $1,240 $1.11 Valora at Homewood 2BR-2.5BA, TH 1,450 $1,255 $0.87 Brookwood 2BR-1BA 1,050 $1,115 $1.06 AVIA 2BR-2BA 1,118 $1,240 $1.11 AVIA 2BR-2BA, TH 1,440 $1,525 $1.06 Brookwood 2BR-2BA 1,250 $1,210 $0.97 Crescent at Lakeshore 2BR-2BA 992 $1,025 $1.03 Valora at Homewood 2BR-2BA 1,450 $1,125 $0.78 Marq Vestavia 2BR-1BA 933 $954 $1.02 Brookwood 2BR-1BA 1,050 $1,115 $1.06 Crescent at Lakeshore 2BR-2BA 960 $978 $1.02 Elevation Homewood 2BR-2.5BA, TH 1,200 $1,077 $0.90 AVIA 2BR-1.5BA, TH 1,280 $1,285 $1.00 Valora at Homewood 2BR-2BA 1,200 $1,075 $0.90 Brookwood 2BR-2BA 1,250 $1,210 $0.97 The Park at Buckingham 2BR-2.5BA, TH 1,800 $1,035 $0.58 Valora at Homewood 2BR-1BA 1,075 $975 $0.91 Marq Vestavia 2BR-1.5BA, TH 1,184 $1,034 $0.87 Elevation Homewood 2BR-2.5BA, TH 1,200 $1,077 $0.90 Crescent at Lakeshore 2BR-2BA 992 $1,025 $1.03 Valora at Homewood 2BR-2BA 1,200 $1,075 $0.90 Abbey at Regents Walk 2BR-2BA 1,200 $999 $0.83 Valora at Homewood 2BR-2.5BA, TH 1,650 $1,450 $0.88 Crescent at Lakeshore 2BR-2BA 960 $978 $1.02 Homewood Heights 2BR-1BA, - R 950 $830 $0.87 Valora at Homewood 2BR-1BA 1,075 $975 $0.91 Marq Vestavia 2BR-1.5BA, TH 1,184 $1,034 $0.87 Valora at Homewood 2BR-2BA 1,130 $975 $0.86 Valora at Homewood 2BR-2.5BA, TH 1,450 $1,255 $0.87 Crescent at Lakeshore 2BR-1.5BA 812 $965 $1.19 Valora at Homewood 2BR-2BA 1,130 $975 $0.86 Marq Vestavia 2BR-1BA 933 $954 $1.02 Abbey at Regents Walk 2BR-2BA 1,050 $895 $0.85 Elevation Homewood 2BR-2BA 1,150 $940 $0.82 Elevation Homewood 2BR-2BA 1,050 $894 $0.85 Crescent at Lakeshore 2BR-1BA 810 $935 $1.15 Valora at Homewood 2BR-1BA 1,100 $935 $0.85 Valora at Homewood 2BR-1BA 1,100 $935 $0.85 Abbey at Regents Walk 2BR-2BA 1,200 $999 $0.83 Abbey at Regents Walk 2BR-2BA 1,050 $895 $0.85 Elevation Homewood 2BR-2BA 1,150 $940 $0.82 Elevation Homewood 2BR-2BA 1,050 $894 $0.85 The Park at Buckingham 2BR-1BA 936 $747 $0.80 Homewood Heights 2BR-1BA, - R 950 $830 $0.87 Valora at Homewood 2BR-2BA 1,450 $1,125 $0.78 The Park at Buckingham 2BR-2BA 1,200 $800 $0.67 The Park at Buckingham 2BR-1BA 1,000 $707 $0.71 The Park at Buckingham 2BR-1BA 936 $747 $0.80 The Park at Buckingham 2BR-2BA 1,200 $800 $0.67 The Park at Buckingham 2BR-1BA 1,000 $707 $0.71 The Park at Buckingham 2BR-2BA 1,066 $707 $0.66 The Park at Buckingham 2BR-2BA 1,066 $707 $0.66 The Park at Buckingham 2BR-2.5BA, TH 1,800 $1,035 $0.58 TOTAL / AVG 1,151 $1,032 $0.91 TOTAL / AVG 1,151 $1,032 $0.91

58 THE PARK AT BUCKINGHAM TWO BEDROOM

THERA PARKNKE ATD BYBUCKINGHAM RENT PER UNIT RANKED BY RENT PER UNIT /SF PROPERTY UNIT TYPE SIZE (SF) EFF. RENT RENT /SF PROPERTY UNIT TYPE SIZE (SF) EFF. RENT RENT /SF TTHHRREEEE B BEDROOMEDROOM

RANKED BY RENT PER UNIT RANKED BY RENT PER UNIT /SF PROPERTY UNIT TYPE SIZE (SF) EFF. RENT RENT /SF PROPERTY UNIT TYPE SIZE (SF) EFF. RENT RENT /SF AVIA 3BR-2.5BA, TH 1,702 $1,850 $1.09 Crescent at Lakeshore 3BR-2BA 1,178 $1,340 $1.14 Valora at Homewood 3BR-2.5BA, TH 2,050 $1,575 $0.77 AVIA 3BR-2.5BA, TH 1,702 $1,850 $1.09 Valora at Homewood 3BR-2BA 1,850 $1,475 $0.80 Homewood Heights 3BR-2BA, - R 1,020 $1,090 $1.07 Valora at Homewood 3BR-2.5BA, TH 2,050 $1,475 $0.72 Marq Vestavia 3BR-2BA 1,156 $1,204 $1.04 Crescent at Lakeshore 3BR-2BA 1,178 $1,340 $1.14 Brookwood 3BR-2BA 1,350 $1,260 $0.93 AVIA 3BR-2BA 1,484 $1,325 $0.89 AVIA 3BR-2BA 1,484 $1,325 $0.89 Abbey at Regents Walk 3BR-2BA, Suite 1,680 $1,312 $0.78 Abbey at Regents Walk 3BR-2BA 1,300 $1,149 $0.88 Abbey at Regents Walk 3BR-2.5BA, TH 1,700 $1,285 $0.76 Brookwood 3BR-2BA 1,450 $1,275 $0.88 Brookwood 3BR-2BA 1,450 $1,275 $0.88 Valora at Homewood 3BR-2BA 1,850 $1,475 $0.80 Brookwood 3BR-2BA 1,350 $1,260 $0.93 Abbey at Regents Walk 3BR-2BA, Suite 1,680 $1,312 $0.78 Marq Vestavia 3BR-2BA 1,156 $1,204 $1.04 Valora at Homewood 3BR-2.5BA, TH 2,050 $1,575 $0.77 Abbey at Regents Walk 3BR-2BA 1,300 $1,149 $0.88 Abbey at Regents Walk 3BR-2.5BA, TH 1,700 $1,285 $0.76 Elevation Homewood 3BR-2.5BA, TH 1,750 $1,109 $0.63 The Park at Buckingham 3BR-2BA 1,400 $1,044 $0.75 Homewood Heights 3BR-2BA, - R 1,020 $1,090 $1.07 Valora at Homewood 3BR-2.5BA, TH 2,050 $1,475 $0.72 The Park at Buckingham 3BR-2BA 1,400 $1,044 $0.75 Elevation Homewood 3BR-2.5BA, TH 1,750 $1,109 $0.63 TOTAL / AVG 1,541 $1,318 $0.88 TOTAL / AVG 1,541 $1,318 $0.88

Broker

59 INVESTMENTAPARTMENT MARKETSUMMARY 60 THE PARK AT BUCKINGHAM

FINANCIAL ANALYSIS

61 INVESTMENTFINANCIAL ANALYSIS SUMMARY 62 THE PARK AT BUCKINGHAM

SEPTEMBER 2018 SEPTEMBER 2018 T-12 ACTUAL T-1 INCOME / T-12 EXPENSES PRO FORMA TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH TOTAL PER UNIT PER MONTH INCOME 1 Scheduled Market Rent $4,850,114 $8,319 $404,176 $4,877,304 $8,366 $406,442 $4,872,048 $8,357 $406,004 2 Gain/(Loss) to Lease (183,793) -3.8% (15,316) (84,754) -1.7% (7,063) 0 0.0% 0

Total Gross Potential $4,666,321 $8,004 $388,860 $4,792,550 $8,220 $399,379 $4,872,048 $8,357 $406,004 3 Vacancy (521,650) -11.2% (43,471) (220,079) -4.6% (18,340) (243,602) -5.0% (20,300) Non-Revenue Units (168,529) -3.6% (14,044) (83,472) -1.7% (6,956) (48,720) -1.0% (4,060) 4 Bad Debt/Write-Offs (33,698) -0.7% (2,808) (89,400) -1.9% (7,450) (24,360) -0.5% (2,030) 5 Concessions (126,981) -2.7% (10,582) (310,225) -6.5% (25,852) (97,441) -2.0% (8,120)

Net Rental Income $3,815,463 $6,545 $317,955 $4,089,374 $7,014 $340,781 $4,457,924 $7,647 $371,494 Cable & Internet 171,381 294 14,282 181,517 311 15,126 185,147 318 15,429 Electricity Income 95,017 163 7,918 100,026 172 8,335 102,026 175 8,502 6 Pest Control 38,396 66 3,200 39,667 68 3,306 40,460 69 3,372 7 Water/Sewer Income 331,637 569 27,636 351,836 603 29,320 358,872 77% 29,906 8 Trash Income 138,829 238 11,569 147,625 253 12,302 150,578 258 12,548 Other Income 243,959 418 20,330 280,830 482 23,403 291,500 500 24,292

Total Other Income $1,019,219 $1,748 $84,935 $1,101,501 $1,889 $91,792 $1,128,584 $1,936 $94,049 Total Operating Income $4,834,682 $8,293 $402,890 $5,190,875 $8,904 $432,573 $5,586,508 $9,582 $465,542

EXPENSES Electric - Common Area $136,860 $235 11,405 $136,860 $235 11,405 $137,005 $235 11,417 Electric - Vacant 57,471 99 4,789 57,471 99 4,789 58,300 100 4,858 Natural Gas 12,250 21 1,021 12,250 21 1,021 14,575 25 1,215 Cable Expense 186,707 320 15,559 186,707 320 15,559 189,475 325 15,790 Water/Sewer 466,308 800 38,859 466,308 800 38,859 466,400 800 38,867 Trash Removal 164,837 283 13,736 164,837 283 13,736 166,155 285 13,846 Subtotal Utilities 1,024,433 1,757 85,369 1,024,433 1,757 85,369 1,031,910 1,770 85,993 Landscaping 81,017 139 6,751 81,017 139 6,751 58,300 100 4,858 Turnover 152,503 262 12,709 152,503 262 12,709 145,750 250 12,146 Repairs & Maintenance 217,773 374 18,148 217,773 374 18,148 174,900 300 14,575 Subtotal Repairs & Maintenance 451,293 774 37,608 451,293 774 37,608 378,950 650 31,579 Payroll & Burden 770,194 1,321 64,183 770,194 1,321 64,183 641,300 1,100 53,442 General & Administrative 121,615 209 10,135 121,615 209 10,135 116,600 200 9,717 Advertising 78,929 135 6,577 78,929 135 6,577 87,450 150 7,288 9 Property Management Fee 146,284 3.0% 12,190 146,284 2.8% 12,190 167,595 3.0% 13,966 10 Real Estate Taxes 435,078 746 36,257 435,078 746 36,257 435,078 746 36,257 Miscellaneous Taxes 52,704 90 4,392 52,704 90 4,392 53,000 91 4,417 11 Property Insurance 183,584 315 15,299 183,584 315 15,299 145,750 250 12,146 12 Capital Reserves 174,900 300 14,575 174,900 300 14,575 174,900 300 14,575

Total Operating Expenses $3,439,013 $5,899 $286,584 $3,439,013 $5,899 $286,584 $3,232,533 $5,545 $269,378

NET OPERATING INCOME $1,395,669 $2,394 $116,306 $1,751,862 $3,005 $145,988 $2,353,975 $4,038 $196,165

Unless otherwise noted on the footnotes page, Pro forma figures are based on a 2.0% increase over the respective September 2018 T-1 Income / T-12 Expenses figure.

63 INVESTMENTFINANCIAL ANALYSIS SUMMARY HISTORICAL & PRO FORMA INCOME FOOTNOTES 1 Scheduled Market Rent The Scheduled Market Rent of $4,872,048, or $406,004 per month, is based on the current market rent shown on the Rent Roll dated 10-16-18. 2 Gain/(Loss) to Lease The pro forma assumes Gain/(Loss) to Lease to be 0.0% of Scheduled Market Rent. 3 Vacancy The pro forma assumes vacancy equivalent to -5.0% of the Gross Potential Income. 4 Bad Debt/Write-Offs The pro forma assumes Bad Debt/Write-Offs of -0.5% of pro forma Gross Potential Income. 5 Concessions Pro forma assumes concessions of -2.0% of Gross Potential Income. 6 Pest Control The pro forma Pest Control figure is based on the monthly fee of Base Year x 1.02, adjusted for pro forma occupancy. 7 Water/Sewer Income The pro forma Water/Sewer Income is based on a typical figure of Base Year x 1.02 of Water/Sewer Expense. Water/Sewer Income represents a 77% recapture rate of Water/ Sewer Expense. 8 Trash Income The pro forma Trash Income is based on a monthly fee of Base Year x 1.02, adjusted for pro forma occupancy.

HISTORICAL & PRO FORMA EXPENSE FOOTNOTES 9 Property Management Fee The pro forma Management Fee is 3.0% of Total Operating Income. 10 Real Estate Taxes PROPERTY TAXES State Alabama 2017 Tax Value $29,002,200 County Jefferson County Assessed Value $5,800,440 City Homewood Millage Rate 75.008 mills Real Property Tax $435,078 Tax Assessment Ratio 20% Stormwater Fees $0 Tax Parcel ID Number(s) Three Parcels Property Tax Rebate $0 Personal Prop/Bus Tax $0 2017 Total Property Taxes $435,078 11 Property Insurance The subject property is located in Flood Zone(s) X. The pro forma Property Insurance is assumed to be $250/unit. 12 Capital Reserves The pro forma Capital Reserves are based on a typical $300/unit.

64 THE PARK AT BUCKINGHAM PARK AT BUCKINGHAM PARK AT BUCKINGHAM 114 Aspen Circle Homewood,Address Alabama 35209114 Aspen Circle 1 BR Homewood, AL 35209 27% 1 BR Jefferson County 27% County Jefferson County Studio 21% Studio Number of Units 583 Units 21% Units: 583 Year Built 1972 Year Built: 1972 Rentable Area 532,496 SF 3 BR Total Area (SF): 3% 532,496 Site Size 33.47 Acres 3 BR Site Size (Acres): 33.47 3% Density 17.42 Units per Acre 2 BR Density (Units Per Acre): 17.42 49% Occupancy* 94.7% 2 BR Occupancy (As of Oct 16, 2018): 94.7% 49% *As of October 16, 2018

UNIT MIX MARKET RENT LEASE RENT UNIT # OF SIZE TOTAL MARKET MARKET MONTHLY ANNUAL # UNITS LEASE LEASE RENT TYPE UNITS SQ. FT. SQ. FT. RENT RENT/SQ. FT. RENT RENT OCCUPIED RENT/SQ. FT. 0 BR / 1 BA 48 491 23,568 $484 $0.99 $23,232 $278,784 44 $482 $0.98 0 BR / 1 BA - R 72 491 35,352 $504 $1.03 $36,288 $435,456 70 $500 $1.02 1 BR / 1 BA 144 800 115,200 $638 $0.80 $91,848 $1,102,176 140 $626 $0.78 2 BR / 1 BA 61 936 57,096 $754 $0.81 $45,994 $551,928 57 $747 $0.80 1 BR / 1.5 BA - TH 14 1,000 14,000 $734 $0.73 $10,276 $123,312 14 $733 $0.73 2 BR / 1 BA 24 1,000 24,000 $714 $0.71 $17,136 $205,632 23 $707 $0.71 2 BR / 2 BA 80 1,066 85,280 $764 $0.72 $61,120 $733,440 78 $762 $0.72 2 BR / 2 BA 110 1,200 132,000 $804 $0.67 $88,440 $1,061,280 97 $800 $0.67 3 BR / 2 BA 20 1,400 28,000 $1,064 $0.76 $21,280 $255,360 20 $1,044 $0.75 2 BR / 2 BA - TH 10 1,800 18,000 $1,039 $0.58 $10,390 $124,680 9 $1,035 $0.57

TOTALS / AVERAGES 583 913 532,496 $696 $0.76 $406,004 $4,872,048 552 $689 $0.79

*Currently 8 down units (under renovation) UTILITIES COMMENTS SEPARATELY None. TYPE OF SERVICE PROVIDER WHO PAYS MONTHLY FEE METERED Electric n/a Yes Tenant - Water & Sewer n/a No Tenant $49-$79 Natural Gas n/a Yes Tenant - Trash Removal n/a n/a Tenant $26

65 INVESTMENTFINANCIAL ANALYSIS SUMMARY RE: THE PARK AT BUCKINGHAM (the ''Property'')

FINANCING STRATEGY:

THE PARKTHE ATPARK BUCKINGHAM AT BUCKINGHAM - Potential - PO FinancingTENTIAL Options FINANCING OPTIONS | INDICATIVE QUOTES AS OF 10/30/18 Indicative Quotes as of 10/30/18 METRICS FIXED FIXED FIXED FIXED FLOATING AGENCY AGENCY AGENCY AGENCY DEBT FUND LTV 65% - 70% 65% - 70% 60% - 65% 60% - 65% 75% - 80% Future Funding Supplemental Supplemental Supplemental Supplemental 100% CapEx Term 7 10 7 10 3+1+1 Index 3.05% 3.10% 3.05% 3.10% 2.30% Spread 1.65% 1.65% 1.45% 1.45% 2.75% Interest Rate 4.70% 4.75% 4.50% 4.55% 5.05% Years of I/O 1-2 years 3-5 years Up to Full Term Up to Full Term Full Term Amortization 30-year 30-year 30-year 30-year Interest-Only Constant 6.22% 6.26% 6.08% 6.12% 5.05% DSCR 1.25 1.25 1.35 1.35 1.10 Recourse Non Recourse Non Recourse Non Recourse Non Recourse Non Recourse *Quoted Agency spreads assume Green discount with additional pricing waivers **Agecy+Pref blended interest rate reflects current pay only. Pref will also have an accrual rate of +/- 5.00% on the backend.

66 global basis as part of the Broker Capital Markets Group. Headquartered in New York City, Broker Equity, Debt & Structured Finance has additional offices in Atlanta, Boston, Chicago, Dallas, Los Angeles, Miami, Phoenix, San Diego, San Francisco and Washington DC. CONFIDENTLY GLOBAL, EXPERTLY LOCAL. The Multifamily 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 20 17 +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.