RYLAND RIDGE

26 UNITS

HUNTSVILLE, AL

BUILT 2001-2015

OFFERING MEMORANDUM 2 RYLAND RIDGE 113 RYLAND RIDGE CIRCLE, HUNTSVILLE, AL 35811

4 INVESTMENT HIGHLIGHTS 8 LOCATION OVERVIEW 16 PROPERTY DESCRIPTION 20 FINANCIALS 26 MARKET RENT ANALYSIS 30 ABOUT ROCK

MICAH DODD Senior Associate [email protected] 205 458 8021

DONALD GAMBRIL Director [email protected] 205 458 8110

BO FARLOW Associate [email protected] 205 458 8120 3 4 Investment Highlights INVESTMENT HIGHLIGHTS Investment Highlights 5 INVESTMENT HIGHLIGHTS

PROVEN VALUE ADD POTENTIAL • A mixture of strong demand and under market rents, Ryland Ridge maintains 100% occupancy with a wait list. A new owner can increase rents $100+ over in-place rents with a light value add program (modern paint scheme & updated counters)

• Below-market rents allow for organic rent increases if a new investor elects not to renovate. Turned units can rent for $800-$825/month without renovation

• Completing the current utility reimbursement program will result in a $6,840 increase to NOI, assuming 95% occupancy. The current owner has implemented $25 monthly utility reimbursement charges on two units. A new owner has the opportunity to implement these $25 monthly charges on the remaining 24 units

• New owner has the option to convert ground-level space into a 27th unit. The unit is located in the basement of unit 113 and currently has plumbing & drywall installed. Estimated cost to convert the space is ~$30,000 and would result in additional revenue of $9,600 annually, assuming rent of $800/month.

LOCATED IN BOOMING HUNTSVILLE • Huntsville has the most compelling job story in Alabama, adding over 9,000 jobs in 2018

• Recent announcements by Toyota-Mazda (4,000 jobs), Facebook ($750M investment), and Polaris (1,700 jobs) continue unprecedented momentum for Huntsville’s economy

• Ryland Ridge is in close proximity to new retail developments including Publix, Walmart, and Starbucks

6 Investment Highlights APPEALING AND EFFICIENT DESIGN • Units at Ryland Ridge were built between 2001-2015, and can be purchased well below replacement cost

• The single-family design at Ryland Ridge is appealing to renters and offers unique amenities including private driveways, front & back yards, stained concrete floors, etc.

• Current ownership has reinvested significant capital into the asset, and positioned a new investor to take over a well-maintained asset with no significant deferred maintenance

DELIVERED FREE & CLEAR • The property will be delivered free & clear of any existing debt. The property sizes well for Freddie & Fannie small balance programs along with traditional bank financing

Investment Highlights 7 8 Location Overview LOCATION OVERVIEW Location Overview 9 KEY FACTS KEY FACTS EDUCATION EDUCATION

455,631 455,63K1EY FACTS38.8 38.8 EDUCATION KEY FACTS 10% 10% EDUCATION HUNTSVILLE, ALABAMA PopulationHUNTSVILLEPopulation MSA KEY FACTS With an MSA population of 455,631, Huntsville is the third largest 455,631 Median Age Median Age 38.8 No High 10% No High 29% 29% city in Alabama. Nicknamed the Rocket City, Huntsville was an 45Population5,631 38.8 School School 2.4 2.4 Diploma 10% Diploma Some College Some College Population $58,58Med0 ian$5 Age 8,580 23% 23% 37% 37% integral part of the space program, and this identity allowed Average Average Median HouseholdMedian MedianAge Household No HighHigh School High School29%Bachelor's/Grad/Prof Bachelor's/Grad/Prof Household Size Household Size Income Income NSchooo HighGlraduate Graduate Degree Degree Huntsville to position itself as one of the major high-tech cities 2.4 Diploma Some29% College $58,580 School 23% 37% 2.4 $58,580 Diploma Some College in the southeast. Recently listed as number 22 on the New York Average BUSINESS BUSINESSMedian Household EMPLOYMENTHigh23% School EMPLOYMENTBachelor's/Grad/Prof37% Income Graduate Degree HouseholdAverage Size Median Household High School Bachelor's/Grad/Prof Times’ top 52 places to visit in the world in 2019, and number 7 Household Size Income Graduate Degree on US News and World Report’s 25 best places to live in 2018, BUSINESS EMPLOYMENT67% 67% BUSINESSBUSINESS White Collar White Collar EMPLOYMENT Huntsville’s explosive economic growth and vibrant culture 19% 67%6.5%19% 6.5% cement Huntsville as a desirable place to live, work, and play. 67% Downtown Huntsville Blue Collar White CollarBlue Collar 16,049 16,049 270,426 270,426 White Collar Unemployment Unemployment 14% 19%Rate14%6.5% Rate Total Businesses Total Businesses Total Employees Total Employees 6.5% REDSTONE ARSENAL Services Blue CollarServices 19% 16,049 270,426 Blue Collar Unemployment Rate Home to the eight square mile Redstone Arsenal that employs 16,049 270,426 Households By IncomHousehoe lds By Income 14% Unemployment Total BusinessesINCOME INCOMETotal Employees Rate The largest groServicesup: $50,000The - $74 larges,999t gro (17.6%)up: $50,000 - $74,99914% (17.6%) roughly 35,000 military and civilian personnel, Huntsville is the Total Businesses Total Employees The smallest groServicesup: $200,000+The sm (5.alles8%)t group: $200,000+ (5.8%) Indicator IndicatorValue Difference Value Difference defense and tech epicenter of the Southeast. The Redstone INCOMEINCOME Households By Income <$15,000 <$15,00011.0% -0.6% 11.0% -0.6% INCOME HousehoThe largestld gros Byup: I ncom$50,000e - $74,999 (17.6%) $15,000 - $24,999 $15,00010.0% - $24,999 -1.9% 10.0% -1.9% Arsenal is a catalyst to numerous military contractors as well as The lsmargesallest grot group:up: $50, $200,000+000 - $74 (5.,9998%) (17.6%) $25,000 - $34,999 $25,0009.5% - $34,999 -1.8% 9.5% -1.8% TheIndicator smallest group: $200,000+Value (5.8%) Difference $35,000 - $49,999 $35,00011.8% - $49,999 -2.2% 11.8% -2.2% other high tech companies. The base is continually growing its Indicator<$15,000 Value11.0% Difference-0.6% $50,000 - $74,999 $50,00017.6% - $74,999 -0.9% 17.6% -0.9% <$15,000$15,000 - $24,999 11.0%10.0% -0.6%1.9% $75,000 - $99,999 $75,00011.9% - $99,999 +0.1% 11.9% +0.1% footprint in Alabama. Senior officials expect the base to employ $15,000$25,000 - $24,999$34,999 10.0%9.5% -1.9%1.8% $100,000 - $149,999 $100,00015.6% - $149,999+2.9% 15.6% +2.9% $25,000$35,000 - $34,999$49,999 9.5%11.8% -1.8%2.2% $150,000 - $199,999 $150,0006.6% - $199,999+1.2% 6.6% +1.2% 50,000 Alabamians and military personnel by 2025. Along with $58,580 $58$,3538,0112 $3$113,1121,697 $111,697$35,000$50,000 - $49,999$74,999 11.8%17.6% -2.2%0.9% $200,000+ $200,0005.8%+ +3.1% 5.8% +3.1% $50,000$75,000 - $74,999$99,999 17.6%11.9% -+0.1%0.9% military personnel and civilian defense contractors, Redstone Median Household MedianPer Household Capita Income Per CapitaMedian Income Net Worth Median Net Worth$75,000$100,000 - $99,999- $149,999 11.9%15.6% +0.1%+2.9% Arsenal is home to other federal agencies such as the FBI and Income $58,580Income $33,112 $111,697 $100,000$150,000 - $149,999$199,999 15.6%6.6% +2.9%+1.2% Redstone Arsenal KEY FACTS $58,580 $EDUCATION33,112 $111,697 $200,000$150,000+ - $199,999 6.6%5.8% Bars+1.2%+3.1% show deviation from Bars show deviation from $200,000+ 5.8% +3.1% ATF. In 2016, the FBI’s Terrorist Explosive Devise Analytical Center Median Household EDUCATIONPer Capita Income Median Net Worth Limestone County Limestone County MedianIncome Household Per Capita Income Median Net Worth (TEDAC) moved from Quantico, Virginia to Huntsville, which kick 455,631 Income Bars show deviation from 38.8 LBarsimeston showe deviationCounty from TOPPopulation AREA EMPLOYERS 10% started an expansion at the arsenal. Recently, the FBI began Limestone County Median Age construction on a 200 acre site within the Arsenal in order to EMPLOYER EMPLOYEES No High 29% School expand its TEDAC presence. The FBI’s expansion could bring as 2.4 Diploma Some College Redstone Arsenal $58, 58 35,0000 23% 37% many as 1,350 FBI jobs to the Arsenal, as well as upwards of 1,500 MarshallAverage Space Flight Center (NASA)Median Household 6,500 High School Bachelor's/Grad/Prof Household Size Income Graduate Degree civilian contracted jobs in support of the center. Generating over Huntsville Hospital 6,341 $100 billion in economic impact each year, the arsenal currently Huntsville City SchoolsBUS INESS 3,000 EMPLOYMENTEMPLOYMENT accounts for 9.8% of Alabama’s GDP, and it is continually growing. The Boeing Company 2,600 67% Madison City Schools 2,389 In addition to the defense work conducted on the base, the White Collar SAIC 2,277 Redstone Arsenal has served as a catalyst for high tech businesses 19% 6.5%2.9% City of Huntsville 2,206 such as those located in the adjacent Redstone Gateway and Blue Collar Huntington16,0 Ingalls49 Industries 270,42 6 2,000 Unemployment nearby Cummings Research Park, the second largest research 14% Rate UniversityTotal Businesses of Alabama in Huntsville Total Employees 1,660 park in the nation. Services

INCOME Households By Income The largest group: $50,000 - $74,999L oca(17.6%) tion Overview 10 The smallest group: $200,000+ (5.8%) Indicator Value Difference <$15,000 11.0% -0.6% $15,000 - $24,999 10.0% -1.9% $25,000 - $34,999 9.5% -1.8% $35,000 - $49,999 11.8% -2.2% $50,000 - $74,999 17.6% -0.9% $75,000 - $99,999 11.9% +0.1% $100,000 - $149,999 15.6% +2.9% $58,580 $33,112 $111,697 $150,000 - $199,999 6.6% +1.2% $200,000+ 5.8% +3.1%

Median Household Per Capita Income Median Net Worth Income Bars show deviation from Limestone County CUMMINGS RESEARCH PARK Established in 1964, Cummings Research Park is now home to more than 300 companies and 25,000 employees involved in technology research and development. Occupied by companies like Lockheed Martin and Northrop Grumman Corporation, the park attracts some of the largest defense contractors as well as other research firms. The park is currently highlighted by the Hudson-Alpha Institute for Biotechnology, situated on 120 acres of the park. Cummings Research Park, along with Huntsville’s reputation as a Southeastern hub for technology research and development, has recently captured the attention of large tech companies. Facebook has announced its plans to build a $750 million project for a 970,000 square foot data center.

UNIVERSITY OF ALABAMA IN HUNTSVILLE The University of Alabama in Huntsville boasts close to 10,000 in Cummings Research Park student enrollment each year between its 89 different degrees. UAH is conveniently located three miles from Cummings Research Park, and the university maintains a large research and development presence. This unique opportunity gives its undergraduate and graduate students access to research opportunities that few other universities in the US can offer.

AUTO MANUFACTURING Toyota Mazda Manufacturing Site Along with a strong technology sector, Huntsville continues to be a manufacturing leader in the Southeast. Mazda and Toyota have entered into a joint venture (Mazda Toyota Manufacturing USA, Inc), and this venture plans to build a $1.6 billion manufacturing plant that will eventually employ 4,000 people. The company broke ground in nearby Limestone County in late 2018, and the plant is set to be fully operational in 2021. Since announcing their plans to open a plant, the two companies have collectively donated upwards of $1 million to local charities. UAH Campus US Space and Rocket Center

Location Overview 11 MEDICAL NORTH HUNTSVILLE RETAIL INDUSTRIAL PARK EDUCATION 9,700 JOBS SUPPORTED BUSINESS MILITARY INDUSTRIAL SITE

JETPLEX

MIDCITY HUNTSVILLE 100 AC MIXED-USE DEVELOPMENT

GREENBRIER UAH 9,101 STUDENTS HUNTSVILLE CBD 1,660 EMPLOYEES LOWE

CUMMINGS RESEARCH PARK HUNTSVILLE HOSPITAL 300+COMPANIES 6,341 EMPLOYEES PEEBLES I-565 25,000 EMPLOYEES

REDSTONE ARSENAL TOYOTA-MAZDA PLANT 35,000 EMPLOYEES $1.6 BILLION - 4,000 JOBS Demographics 1D13e Rylanmod gRidraphicsge Cir, Huntsville, Alabama, 35811 (3 miles) 3 Mile Radius 113 Ryland Ridge Cir, Huntsville, Alabama, 35811 Latitude: 34.76811 113 Ryland Ridge Cir, Huntsville, Alabama, 35811 (3 miles) 3 Mile Radius Ring of 3 miles Longitude: -86.48375 113 Ryland Ridge Cir, Huntsville, Alabama, 35811 Latitude: 34.76811 Ring of 3 miles Longitude: -86.48375

KEY FACTS EDUCATION KEY FACTS EDUCATION 11,154 41.3 7% 11Population,154 41.3 Population Median Age 7% Median Age No High 36% School Demographics 2.5 DNiplomo Higha Some36% College $78,194 School 18% 40% Demo113g Rylanraphicsd DRidegemo Cir, Huntsville,graphics Alabama, 35811 (3 miles) 2.5 3 MileDiplom Radiusa Some College Bachelor's/Grad/Prof 113 Rylan11d3 RRylanidged Ci 1Rr,1id 3Huntsville,ge Rylan Cir,d Huntsville, Ri dAlabama,ge Cir, Alabama,Huntsville, 35811 (3 35811 Alabama,miles) 35811 (3 miles) Average $7Median8,194 Household 3 MileLatitude: Radius 34.768113 Mile RadiusHigh18% School 40% Ring of 3 miles Household Size Income Longitude: -86.48375 Graduate Degree 113 Ryland Ridge Ci1r,1 3Huntsville, Ryland Ri dAlabama,ge Cir, Huntsville, 35811 Alabama, 35811 Average Median Household Latitude: 34.76811Latitude: 34.76811High School Bachelor's/Grad/Prof RYLANDRing of 3 mile RIDGEs Ring of 3 miles Household Size Income Longitude: -86.48375Longitude: -86.48375Graduate Degree BUSINESS EMPLOYMENT 10 MINUTES TO KEY FACTS EDUCATION BUSINESS EMPLOYMENT DOWNTOWN KEY FACTS KEY FACTS EDUCATION EDUCATION 72% HUNTSVILLE11,154 White Collar 72% CHASE INDUSTRIAL PARK 41.3 7% 11,154Population11,154 41.3 41.3 White Collar 1,700 AC 7% 7% 16% 4.3% Population Population Median Age 4.3% Median Age Median Age No High 36% Blue Collar 16% Demographics School Unemployment No High245 No High 4,161 Blue Collar 2.5 Diploma 36%Some College36% Rate Demo1g13raphics RylanDd Reidmoge Cir,g Huntsville,raphics Alabama, 35811 (3 miles) $78,194 School School3 Mile Radius 12% Unemployment Total 24Businesses5 18% Tota4,161l Employees 40% Demographics 113 Ryland Ridge Cir, Huntsville, Alabama, 35811 2.5 2.5 Diploma DiplomLatitude:a 34.76811Some College Some College Rate 113 Ryland Ridge Ci1r,1 3Huntsville, Ryland R iAlabama,dge Cir, Huntsville, 35811 (3 Alabama,miles) 35811 (3 miles) $78,194$78,194 3 Mile Radius 3 Mile Radius Bachelor's/Grad/ProfServices 113 Ryland Ridge Cir, Huntsville, Alabama, 35811 (3 miles) Ring of 3 miles Average 3 Mile Radius Median Household Longitude:18%High -86.48375 School 18% 40% 40% 12% 113 Ryland Ridge Ci1r,1 3Huntsville, Ryland R iAlabama,dge Cir, Huntsville, 35811 Alabama, 35811 Total BusinessesLatitude: 34.76811 Latitude: 34.76811Total Employees Degree Household Size Income Graduate Bachelor's/Grad/ProfBachelor's/Grad/ProfServices 113 Ryland Ridge Cir, Huntsville, Alabama, 35811 Ring of 3 miles Ring of 3 miles RYLANDAverage RIDGEAverage Latitude: DEMOGRAPHICS 34.7M6811edian HouseholdMedian Household - 3 MILELongitude: HighRADIUS -86.48375 SchoolLongitude:High -86.48375 School Ring of 3 miles Household Size HouseholdLongitude: Size -86.48375 Income Income GraduateINCOME Graduate Degree HouseholdsDegree By Income KEY FACTS BUSINESS EDUCATION INCOMEEMPLOYMENT TheHouseholds largest group: By Income$100,000 - $149,999 (21.9%) TheThe smallestlargest g groroup:up: $100,000 <$15,000 - (5.1%)$149,999 (21.9%) KEY FACTS KEY FACTS BUSINESS BUSINESS EDUCATION EDUCATION EMPLOYMENTEMPLOYMENT Indicator Value Difference KEY FACTS EDUCATION The smallest group: <$15,000 (5.1%) <$15,000 5.1% -5.6% Indicator Value Difference 72% $15,000 - $24,999 5.1% -3.6% 11,154 41.3 <$15,000 5.1% -5.6% 7% White Collar 72% 72% $25,000 - $34,999 7.1% -1.8% 11,154Population11,154 41.3 41.3 $15,000 - $24,999 5.1% -3.6% 11,154 White Collar White Collar $35,000 - $49,999 12.2% +0.6% 41.3 Population Population 7% 7% $25,000 - $34,999 7.1% -1.8% Median Age 4.3%$50,000 - $74,999 17.4% +1.1% Population 7% 16% $35,000 - $49,999 12.2% +0.6% Median Age Median Age No High $75,000 - $99,999 17.9% +5.3% HUNTSVILLE HOSPITAL 36% 4.3% $50,0004.3% - $74,999 17.4% +1.1% Median Age School Blue Collar 16% 16% No High No High $100,000 - $149,999 21.9% +4.7% 2.5 245 Diploma 4,161 36%Some College36% Unemployment$75,000 - $99,999 17.9% +5.3% No High School School Blue Collar Blue Collar 6,341 EMPLOYEES $78,19436% Rate $150,000 - $199,999 6.7% -0.8% School2.5 Demographics 18%Some College Some College 40% Unemployment Unem$100,000ployment - $149,999 21.9% +4.7% 2.5 245 24Diplom5 a D4,161iploma 4,161$78,194 $36,439 $2512%7,506 $200,000+ 6.6% +0.1% 2.5 Diploma $78,194MediSomean Household$7Total College Businesses8,194 18%TotaHighl Employees School18% 40%Bachelor's/Grad/Prof40% Rate $150,000Rate - $199,999 6.7% -0.8% $78,194 Average 113 Ryland Ridge Cir, Huntsville, Alabama, 35811 (3 miles) $78,194Services $36,439 12% 12%3 Mile Radius Household Size 18% TotalIncom Businessese Total Businesses40% Total EmployeesGraduateTotal Employees Degree $257,506 $200,000+ 6.6% +0.1% Average Average 113 Ryland MRidedigean Ci r,Household Huntsville,M Alabama,edian Household 35811 High School High SchoolMedian HouseholdBachelor's/Grad/ProfBachelor's/Grad/ProfPer Capita Income MedianLatitude: Net Worth 34.76811 High School Bachelor's/Grad/Prof Services Services Average Median HouseholdHousehold Size Household SizeRing of 3 miles Income Income Graduate Graduate Income Degree Degree Longitude: -86.48375 Household Size GOVERNORS DR SE Income Graduate DegreeINCOME Median HouseholdHouseholds ByPer Income Capita Income Median Net Worth Bars show deviation from BUSINESS EMPLOYMENTIncome INCOME INCOME HouseholdsThe larges By Incomet Hgroup:ouseholds $100,000 By -Income $149,999 (21.9%) Bars shMadisonow deviation Count fromy BUSINESS BUSINESS EMPLOYMENTEMPLOYMENTThe smallest group: <$15,000 (5.1%) BUSINESS EMPLOYMENT KEY FACTS The largest group: $100,000The largesEDUCATIO -t $149,999group: $100,000 (21.N 9%) - $149,999 (21.9%) Madison County The smallestIndicat groorup:The <$15,000 smallest (5.1%) group:Value <$15,000 (5.1%)Difference Indicat72%or <$15,000 Indicator Value 5.1%DifferenceValue-5.6% Difference White Collar 72% <$15,000$15,00072% - $24,99<$15,0009 5.1% 5.1% -5.6% 5.1%-3.6% -5.6% 72% $25,000 - $34,999 7.1% -1.8% 11,154 White Collar 41Whi.3te Collar $15,000 - $24,999 $15,000 - $24,995.1%9 -3.6% 5.1% -3.6% White Collar $25,000 -$35,000 $34,999 - $49,99$25,0004.3%9 - $34,9997.1% 12.2%-1.8% 7.1%+0.6% -1.8% Population 7%16% $35,000 -$50,000 $49,994.3%9 - $74,999$35,000 - $49,99124.3%.2%9 17.4%+0.6% 12+1.1%.2% +0.6% Blue Collar 16% 16% 4.3% Median Age $50,000 -$75,000 $74,999 - $99,99$50,0009 - $74,99917.4% 17.9%+1.1% 17+5.3%.4% +1.1% 245 4,16116% Unemployment Blue Collar Blue Collar No High$75,000 -$100,000 $99,999 - $149$75,000,999 - $99,9917.9%9 21.9%+5.3% 17+4.7%.9% +5.3% Blue Collar Rate 36% 245 245 4,161 4,161 School$100,00012%Unem$150,000 - $149ployment,999 - $199,$100,000999Unem - $14921.9%ployment,9996.7% +4.7% 21-0.9%.8% +4.7% 245 4,161 Total Businesses 2.5Tota$7l E8mployees,194 Unem$36,439ployment $257,506Diploma Rate SRateome College Services$78,194 12% $150,000$200,000+ - 12%$199,999 $150,000 - $199,6.7%9996.6% -0.8% 6.7%+0.1% -0.8% Total Businesses Total Businesses Tota$l E7mployees8,194Tota12%$l 7Employees8,194$36,439Rate $36,439$257,506$257,506 18% 40% Total Businesses Total Employees Services Services $200,000+ High School$200,000+ 6.6% +0.1% 6.6%Bachelor's/Grad/Prof+0.1% Services AveraMgeedian Household Per CapitaMedi Incomean Household Median Net Worth INCOMEHousehold SizeIncome HouseholdsIncom eBy Income Graduate Degree Median HouseholdMedian HouseholdPer Capita IncomePer CapitaMedian Income Net WorthMedian Net Worth Bars show deviation from INCOME INCOMEIncome Income HouseholdsThe largesBy IncomeHt ouseholdsgroup: $100,000 By Income - $149,999 (21.9%) INCOME Households By Income The smallest group: <$15,000 (5.1%) Bars show deviationMadison fromBars Count showy deviation from BUSINESSThe largest group: $100,000The larges - t$149,999 group: $100,000 (21.9%) - $149,999 (21.9%) EMPLOYMENT The largest group: $100,000 - $149,999 (21.9%) The smallestIndicat groorup:The <$15,000 smallest (5.1%) group: <$15,000Value (5.1%)Difference Madison County Madison County The smallest group: <$15,000 (5.1%) Indicator <$15,000Indicator Value 5.1%DifferenceValue-5.6% Difference Indicator Value Difference <$15,000 $15,000 - $24,99<$15,0009 5.1% 5.1%-5.6% 5.1%-3.6% -5.6% <$15,000 5.1% -5.6% $15,000 - $24,99$25,0009 - $34,999$15,000 - $24,995.1%9 7.1%-3.6% 5.1%-1.8% -3.6% 72% $15,000 - $24,999 5.1% -3.6% $25,000 - $34,999$35,000 - $49,99$25,0009 - $34,9997.1% 12.2%-1.8%Whi7.1%te+0.6% Collar -1.8% $25,000 - $34,999 7.1% -1.8% $35,000 - $49,99$50,0009 - $74,999$35,000 - $49,9912.2%9 17.4%+0.6% 12.2%+1.1% +0.6% $35,000 - $49,999 12.2% +0.6% $75,000 - $99,999 17.9% +5.3% 4.3% $50,000 - $74,999 $50,000 - $74,99917.4% +1.1% 17.4% +1.1% 16% $50,000 - $74,999 17.4% +1.1% $75,000 - $99,99$100,0009 - $75,000$149,999 - $99,9917.9%9 21.9%+5.3% 17.9%+4.7% +5.3% $75,000 - $99,999 17.9% +5.3% Blue Collar $100,000 - $150,000$149,999 - $100,000$199,999 - $14921.9%,999 6.7%+4.7% 21.9%-0.8% +4.7% Unemployment $78,194$100,000 - $149,999$36,43921.9%245 +4.7%$257,506 $200,000+4,161 6.6% +0.1% $150,000 - $199,999 $150,000 - $199,6.7%999 -0.8% 6.7% -0.8% Rate $78,194 $78$150,000,194$36,439 - $199,999 $36,4396.7%$257,506-0.8% $257,506 12% $78,194 $36,439 Total Businesses $200,000+ Total Employees$200,000+ 6.6% +0.1% 6.6% +0.1% $257,506Median Household$200,000+ Per Capita Income6.6% +0.1%Median Net Worth Services Income Median HouseholdMedian HouseholdPer Capita IncomePer CapitaMedian Income Net WorthMedian Net Worth Bars show deviation from Median Household Per Capita Income Median NetIncome Worth Income Income INCOME Households ByBars Income show deviationMadison fromBars sh Countow devy iation from Bars show deviation from The largest group: $100,000Madison - Count $149,999y (21.Madison9%) County Madison County The smallest group: <$15,000 (5.1%) Indicator Value Difference <$15,000 5.1% -5.6% $15,000 - $24,999 5.1% -3.6% $25,000 - $34,999 7.1% -1.8% $35,000 - $49,999 12.2% +0.6% $50,000 - $74,999 17.4% +1.1% $75,000 - $99,999 17.9% +5.3% $100,000 - $149,999 21.9% +4.7% $150,000 - $199,999 6.7% -0.8% $78,194 $36,439 $257,506 $200,000+ 6.6% +0.1%

Median Household Per Capita Income Median Net Worth Income Bars show deviation from Madison County HUNTSVILLE: IN THE NEWS

“Huntsville: 6th in Nation for Job Growth in 2018” – 24/7 Wall Street

“WSJ: Huntsville #3 on List of Where You Should Move to Make the Most Money” – The Wall Street Journal

“Facebook to Invest $750 Million in New Data Center in Huntsville” – Huntsville Chamber of Commerce

“Google Plans Largest Solar Farms in Alabama, Tennessee” _ AL.com

“Inc. Puts Huntsville No. 2 Among the Top Six “Attention-Grabbing Cities for Tech Start-Ups” – Inc. Magazine

“Many New Establishments Joining Huntsville Activity in 2019 Including Dave and Busters, Chuy’s, Duluth Trading Company and Many Others” – AL.com

“Huntsville Named One of the 52 Places to Visit in 2019” – New York Times

“Cummings Research Park is 2nd Largest Research Park in the Country and Fourth Largest in the World” – CummingsResearchPark.com

14 Location Overview Facebook Data Center Downtown Huntsville

Google Data Center – Bridgeport, AL 26,500 SF Dave and Busters - 7/19 Cummings Research Park

Location Overview 15 16 Property Description PROPERTY DESCRIPTION Property Description 17 ADDRESS JURISDICTION AND TAXES 113 Ryland Ridge Circle, Huntsville, Alabama 35811 Jurisdiction: Madison County

Parcel ID number: 1306230001001036 LOCATION 1306230001001041 1306230001001042 The property is situated 0.5 miles from US Highway 72. Approximately five miles west of 1306230001001043 the subject, Highway 72 joins Interstate 565, which then continues westward to Interstate Assessment Ratio: 20.00% 65. It provides great access within the neighborhood and to other areas of the Hunts- Tax Rate: 3.6500% ville MSA. Other key traffic carriers through the neighborhood include Winchester Road, Tax Year: 2017 Ryland Pike, Maysville Road, and Jordan Road.

SITE LAYOUT The property consists of 26 patio homes constructed between 2001 and 20015. The total net rentable area is 21,339 square feet. The improvements are situated on approximately 5.46 acres of land, which is comprised of four continuous parcels.

LAND AREA This site sits on 5.46 acres.

ZONING The property is zoned R3 Multifamily Residential.

UTILITIES Utilities serving the subject include public water and electricity. Septic systems are used for wastewater removal.

ACCESS / SIGNAGE / VISIBILITY The property has access frontage at the southern terminus of Ryland Ridge Circle. From said road, there is an ingress-egress easement extending southward providing access to the subject units. The easement is a two-lane, asphalt drive.

18 Property Description UTILITY/ SEPARATELY RESIDENTS UNIT INTERIORS PROVIDER SERVICE METERED PAY DIRECTLY Alabama Power Electricity Yes Yes KITCHENS Company Kitchens include frost-free refrigerator/freezer, electric oven/range with vent hood, Water/ Sewer Madison County No No double stainless sink, dishwasher, and laminate countertops (granite countertops in Cable TV/ Various Yes Yes 1 unit) Internet

BATHROOMS Bathrooms include porcelain sink in laminate countertop, porcelain commode, and FLOOD HAZARD 01089O0215E fiberglass tub and shower combination unit Panel Number: Date: 2-Dec-14

Flood Zone: Zone X MISCELLANEOUS All units include washer/dryer units (with two exceptions), rear patio/decks, ceiling Flood Insurance Required No fans, and private two-car concrete parking pad

SCHOOL ZONING Elementary Central School (PK-8) High Madison High School (9-12)

Property Description 19 20 Financials FINANCIALS Financials 21 SUMMARY

PROPERTY OVERVIEW Ryland Ridge Apartments 113 Ryland Ridge Circle Huntsville, AL 35811 Madison County

Year Built 2001-2015 No. of Units 26 Acres 5.46 Units Per Acre 0.18 Total Sq Ft 21,339 Current Occupancy 100%

UNIT MIX SUMMARY Current Mkt Renovated Renovated Type No. Units Unit SF In-Place Rent Rent Mkt Rent PSF 1BR/1BA 1 741 $675 $775 $825 $1.11 2BR/1BA 5 700 $755 $800 $875 $1.25 2BR/1BA 2 752 $750 $800 $875 $1.16 2BR/1BA 8 774 $759 $800 $875 $1.13 2BR/1BA 8 865 $742 $800 $875 $1.01 2BR/1BA 1 1,112 $875 $875 $900 $0.81 2BR/1BA 1 1,370 $850 $875 $900 $0.66 Total/Avg 26 821 $757 $805 $875 $1.09

22 Financials RETURNS

Financials 23 HISTORICAL & PROFORMA

January 2019 January 2019 Rock Advisors T-12 T-3 Annualized / T-12 Proforma Notes Total Per Unit Total Per Unit Total Per Unit INCOME Current Market Rents (CMR) $221,983 $8,538 $239,220 $9,201 $251,100 $9,658 Projected Rent Increase - - - - 21,896 842 8.7% Scheduled Market Rents (SMR) $221,983 $8,538 $239,220 $9,201 $272,996 $10,500 Less: Loss to Lease - - - - (2,730) (105) 1% of SMR Gross Potential Rent (GPR) $221,983 $8,538 $239,220 $9,201 $270,266 $10,395 Less: Vacancy Loss - - - - (13,513) (520) 5% of GPR Less: Credit Loss - - - - (676) (26) 0.25% of GPR Total Effective Income (EI) $221,983 $8,538 $239,220 $9,201 $256,077 $9,849 Add: Other Income 1,058 41 - - 1,300 50 Proforma Add: Utility Income 841 32 600 23 7,410 285 $25/unit @ 95% occupancy Total Income (TI) $223,883 $8,611 $239,820 $9,224 $264,787 $10,184

EXPENSES Administrative - - - - 1,950 75 Proforma 1 Utilities 14,237 548 14,237 548 14,237 548 T12 Repair & Maintenance 19,395 746 19,395 746 19,395 746 T12 Management Fee 15,262 587 15,262 587 17,925 689 7% of EI Taxes 8,449 325 8,449 325 8,449 325 Actual Insurance 7,928 305 7,928 305 7,928 305 Actual Total Operating Expenses $65,272 $2,510 $65,272 $2,510 $69,885 $2,688 Replacement Reserves 6,500 250 6,500 250 6,500 250 $250 Per Unit Total Expenses $71,772 $2,760 $71,772 $2,760 $76,385 $2,938

NET OPERATING INCOME (NOI) $152,111 $5,850 $168,048 $6,463 $188,402 $7,246 1 T12 Utitlies have been normalized for the month of January

24 Financials Debt Service Exit Assumptions Loan Amount $1,875,000 Exit Cap Rate 7.25% LTV 75% Exit Year Year 6 Interest Rate 4.76% Selling Expense 2.25% Amortization (Years) 30 Sales Price (w/ Fees) $2,898,384 I/O Period (Months) CA12SNetH ProceedsFLOW $1,280,004 Term (Years) 10 IRR 22.52%

FY0 FY1 FY2 FY3 FY4 FY5 FY6 Operating Revenue Total Effective Income $256,077 $262,479 $269,041 $275,767 $282,661 $289,728 Add: Other Income 1,300 1,339 1,379 1,421 1,463 1,507 Add: Utility Income 7,410 7,632 7,861 8,097 8,340 8,590 Total Income (TI) $264,787 $271,450 $278,281 $285,285 $292,464 $299,825 Operating Expenses Total Controllable Expenses $35,582 $36,294 $37,020 $37,760 $38,515 $39,286 Management Fee 17,925 19,002 19,480 19,970 20,472 20,988 Taxes 8,449 8,618 8,791 8,966 9,146 9,329 Insurance 7,928 8,087 8,248 8,413 8,582 8,753 Total Operating Expenses $69,885 $72,000 $73,538 $75,110 $76,715 $78,355 Replacement Reserves 6,500 6,500 6,500 6,500 6,500 6,500 Total Expenses $76,385 $78,500 $80,038 $81,610 $83,215 $84,855 Net Operating Income (NOI) $188,402 $192,950 $198,243 $203,675 $209,249 $214,970

Cash Flow Assumptions Proforma FY2 FY3 FY4 FY5 FY6 Rent Growth 8.72% 2.50% 2.50% 2.50% 2.50% 2.50% Loss to Lease 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% VacancyFY1 LossASSUMPTIONS 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% Non-Rev Units 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% ConcessionsINCOME 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Credit• LossCurrent Market Rent includes rent levels at CMR levels0.25% (Rent=$805/unit)0.25% 0.25% 0.25% 0.25% 0.25% Other• Income8.7% Growth rent increase assuming light renovation plan is implemented (Rent=$875/unit)3.00% 3.00% 3.00% 3.00% 3.00% Expenses• Growth1% loss to lease 2.00% 2.00% 2.00% 2.00% 2.00% Replacement• 5% Reserves vacancy 0.00% 0.00% 0.00% 0.00% 0.00% • 0.25% credit loss • $50/unit other income • $285/unit utility income: assumes full adoption of $25/month reimbursement @ 95% occupancy

EXPENSES • $75/unit administrative expense (proforma) • $548/unit utility expense (T12) • $746/unit R&M expense, which includes contract services such as pest control, garbage, and grounds • 7% management fee (proforma), in line with market mgmt. fee for properties without onsite staff • $8,449 tax expense (2018) • $305/unit insurance expense (actual premium) • $250/unit replacement reserve – Freddie & Fannie SBL programs will underwrite replacement reserves

Financials 25 26 Market Rent Analysis MARKET RENT ANALYSIS Market Rent Analysis 27 OCCUPANCY AND RENTAL RATES

Huntsville Product Built Between 2000-2010

28 Market Rent Analysis ASKING RENT PER UNIT BY BEDROOM

Huntsville Product Built Between 2000-2010

Market Rent Analysis 29 WHO WE ARE

INDEPENDENT FIRM WITH INSTITUTIONAL RESOURCES EXPERIENCE Rock, uniquely positioned as the Southeast’s premier Rock’s talented team has brokered apartment independent multifamily brokerage firm, has provided transactions exceeding $2 Billion in total sales since exceptional service to its clients since 2003. We operate a its inception in 2003. Our team understands how to specialized boutique firm focused on consulting relationships position properties for sale and match the correct buyer with our clients. We are not just another satellite office merged and capital source for the seller to realize its exit strategy. into a national platform focused on transactional volume to cover overhead. We provide unbiased, honest advisory TEAM APPROACH service through a process that translates into tangible value Rock approaches the multifamily brokerage business for our clients both local and institutional. with a unique team model – collectively working on each transaction. Each team member contributes to and is engaged in every disposition assignment. MARKET KNOWLEDGE Due to our singular focus on the apartment sector and our INTEGRITY innovative team approach, we are able to effectively compile Each team member at Rock engages in the brokerage relevant market data and collectively understand multi-family business with honesty and integrity. We seek to provide markets better than other commercial real estate firms. We realistic and practical assessments of property value, not leverage our market knowledge to service and benefit our merely induce owners into signing listing agreements clients. based on unreasonable expectations.

30 About Rock RECENT TRANSACTIONS

LOCATION UNITS STATUS Jackson, MS 207 Closed Savannah, GA 32 Closed Foley, AL 60 Closed Birmingham, AL 12 Closed Sylacauga, AL 80 Closed Jackson, MS 399 Closed Gadsden, AL 248 Closed Jackson, MS 144 Closed Huntsville, AL 100 Closed Pensacola, FL 218 Closed Ridgeland, MS 316 Closed Jackson, MS 80 Closed Birmingham, AL 114 Closed Biloxi, MS 257 Closed Birmingham, AL 193 Closed Birmingham, AL 87 Closed Birmingham, AL 168 Closed Huntsville, AL 65 Closed Selma, AL 36 Closed Montgomery, AL 35 Closed Birmingham, AL 153 Closed Birmingham, AL 36 Closed Baton Rouge, LA 328 Closed Montgomery, AL 56 Closed Auburn, AL 214 Closed Huntsville, AL 336 Closed Anniston, AL 200 Closed Birmingham, AL 30 Closed Biloxi, MS 240 Closed Dothan, AL 160 Closed Jackson, MS 280 Closed OVER $2 BILLION IN SALES Tuscaloosa, AL 244 Closed Mobile, AL 152 Closed Gadsden, AL 100 Closed Natchez, MS 80 Closed Montgomery, AL 277 Closed Jackson, MS 528 Closed Saraland, AL 192 Closed

About Rock 31