Offering Memorandum

OFFERING MEMORANDUM

Willow Trace Apartments 8100 Pines Road, Shreveport, LA 71129

Garden Style 1978 built - 192 Total Units

John A. Hamilton Luke Nicholls [email protected] [email protected]

For additional information, please contact the agents at this toll free number: 1-877-806-4791 330 Marshall Street, Suite 200 | Shreveport, LA 71101 | website: www.vintagemultifamily.com Table of Contents:

1 - Property Tours...... Page 3

2 - Overview...... Page 4

3 - Property & Location Highlights...... Page 5

4 - Property Summary...... Page 8

5 - Location Map...... Page 9

6 - Neighborhood Aerial...... Page 10

7 - Floor Plans...... Page 11

8 - Site Plan/Aerial...... Page 13

9 - Amenities...... Page 15

10 - Comparable Rentals...... Page 16

11 - Financials...... Page 18

12 - Comparable Sales...... Page 20

13 - Vintage Realty Company & Agent Overview...... Page 22

Prospective Purchasers will have the opportunity to visit the property via pre scheduled property tours. These tours will include access to a sampling of available units and limited access to property personnel. In order to accommodate the ongoing operations, property visitation will take place the week of September 16-20, 2019.

No property tours will be allowed under any circumstances without a scheduled appointment and prospective purchasers may not contact the property or visit the property without being accompanied by a representative of Vintage Realty Company. Call for Offers/Bid Deadline is scheduled for September 27, 2019.

Offers should be submitted in the form of a non-binding Letter of Intent, complete with all applicable terms including, but not limited to:

1) Asset pricing 2) Inspection and closing time frame 3) Deposit amount 4) Description of debt/equity structure 5) Any financing contingencies that might exist 6) Explanation of which parties pay closing costs

Offers should be delivered to the attention of John Hamilton at the email address or fax number provided herein.

John A. Hamilton | 1-877-806-4791 [email protected]

Page | 3 PROPERTY AND MARKET ANALYSIS

Strong Demand – Tucked away in a little alcove off Pines Road in the West and Southwest quadrant of Shreveport, LA, with the The Club at Huntington Park Golf Course as its neighbor and home to the solid working class of Shreveport, LA, Willow Trace is the perfect place to rent an apartment. With all of the big box users, including Super Walmart and Home Depot, and the major East/West I-20 Interstate located within minutes of the property, Willow Trace is in an ideal location. Willow Trace’s well maintained condition, expanded floor plan with washer and dryer connections, and PROPERTY HIGHLIGHTS wonderful amenities make it a prime property for this area. Rental Analysis – Organic rent growth fundementals are excellent with considerable growth back to the near record levels of 2013. Additionally, no new multi-family development permits have been pulled for the immediate or even distant future, so Willow Trace and West Shreveport are primed for unit interior upgrades. Market Analysis – Average occupancy is trending back up close to, and at the time record, 2013 levels and rents seem to have not only stabilized in the $.84 per sq. ft range, but are showing signs of continued growth as the Haynesville Shale comes back into focus. Properties with strong management teams and well maintained assets continue to lead the way in West Shreveport, driving the high end of the occupancy scale. With the Haynesville Shale seeing a spike in interest again, Oil and Gas companies are slowly migrating back into the region, giving encouraging rent growth signs to the Shreveport rental market as a whole, and West Shreveport in particular.

Vacancy Rate Market Asking Rent Per SF 12% $0.90 Forecast Forecast

$0.88 11%

$0.86 10%

$0.84 9%

$0.82 8%

$0.80

$0.78

6% $0.76

5% $0.74

4% Page | 4 09 10 11 12 13 14 15 16 17 18 19 20 $0.72 09 10 11 12 13 14 15 16 17 18 19 20

© 2019 CoStar Realty Information Inc. 06/13/2019 © 2019 CoStar Realty Information Inc. 06/13/2019 LOCATION HIGHLIGHTS Shreveport/Bossier City is part of the area called the Ark-La-Tex, a U.S. socio- economic region where Arkansas, Louisiana, Texas, and Oklahoma intersect. The Shreveport—Bossier City MSA is home to Barksdale Air Force Base, AREA AREA PROFILE Cyber Innovation Center, the CenturyLink Event Center, multiple colleges and universities, as well as several upscale riverboat casinos that bring over 2 million tourists to the area each year.

Shreveport North Louisiana’s 14 parishes of over 815,000 residents boast some of the most vibrant and diverse economies in the nation. The population within a 20 Alexandria Baton mile radius of Shreveport Bossier in 2010 was 365,719 with a projected 2022 Rouge population of 395,235. Source: US Census Bureau and ESRI forecasts.

Northwest Louisiana supports a large and sophisticated healthcare sector, a competitive manufacturing base, a reenergized oil and gas sector (through the exploration of the Haynesville Shale), a sizeable and diverse service sector and supplier network, a transforming timber/paper industry, a hospitality/ gaming industry, federal installations and more.

REGIONAL CITIES AND THEIR DISTANCE FROM SHREVEPORT, LOUISIANA INCLUDE:

El Dorado, AR 96 miles Little Rock, AR 212 miles Monroe, LA 98 miles Jackson, MS 219 miles Alexandria, LA 125 miles Houston, TX 240 miles Vicksburg, MS 175 miles New Orleans, LA 328 miles Dallas, TX 186 miles Oklahoma City, OK 390 miles

Page | 5 2010 Census Profile DEMOGRAPHIC SNAPSHOT - 1, 3, 5 MILE RADIUS 8100 Pines Rd, Shreveport, Louisiana, 71129 2 Prepared by Esri 8100 Pines Rd, Shreveport, Louisiana, 71129 Latitude: 32.42362 1 MILE Ring: 1 mile radius Longitude: -93.85721 2000-2010 2000 2010 Annual Rate Population 2010 Census Profile 2,559 3,073 1.85% Households 1,086 1,314 1.92% Housing Units 8100 Pines Rd, Shreveport, Louisiana, 71129 2 1,186 1,399 Prepared1.67% by Esri 8100 Pines Rd, Shreveport, Louisiana, 71129 Latitude: 32.42362 Population by Race Number Percent Ring: 3 mile radius Longitude: -93.85721 Total 3,074 100.0% 3 MILEPopulation Reporting One Race 3,030 98.6% 2000-2010 White 837 27.2% 2000 2010 Annual Rate Black 2,125 69.1% Population 2010 Census Profile 19,005 20,473 0.75% SNAPSHOT DEMOGRAPHIC American Indian 12 0.4% Households 7,865 8,862 1.20% Asian 8100 Pines Rd, Shreveport, Louisiana, 71129 2 21 Prepared by0.7% Esri Housing Units 8,445 9,466 1.15% Pacific Islander 8100 Pines Rd, Shreveport, Louisiana, 71129 2 Latitude: 32.423620.1% PopulationSome Other by Race Race Ring: 5 mile radius Number33 Longitude: -93.85721Percent1.1% 5 MILETotalPopulation Reporting Two or More Races 20,47444 100.0%1.4% 2000-2010 Population Reporting One Race 20,156 98.4% Total Hispanic Population 2000 201081 Annual Rate2.6% White 8,043 39.3% Population 71,627 72,597 0.13% Black Executive Summary 11,634 56.8% HouseholdsPopulation by Sex 27,584 28,703 0.40% American Indian 85 0.4% HousingMale Units 8100 Pines Rd, Shreveport, Louisiana, 71129 2 29,567 30,6871,402 Prepared0.37%45.6% by Esri Asian 177 0.9% Female 8100 Pines Rd, Shreveport, Louisiana, 71129 1,671 Latitude: 32.4236254.4% Pacific Islander 9 0.0% Population by Race Rings: 1, 3, 5 mile radii Number Longitude: Percent-93.85721 ToPopulationtalSome Other by Age Race 72,596208 100.0%1.0% 1 mile 3 miles 5 miles TotalPopulation Reporting OneTwo Raceor More Races 71,5073,073318 100.0%98.5%1.6% Mortgage Income AgeWhite 0 - 4 27,460260 37.8%8.5% Total Hispanic Population 595 2.9% AgeBlack 52019 - 9 Percent of Income for Mortgage 1 MILE21.7% 3 18.5%MILE42,553233 5 58.6%18.3%MILE7.6% AgeMedian 10 - 14 Household Income 193 6.3% PopulationAmerican by Indian Sex 283 0.4% Age 15 - 19 190 6.2% MaleAsian2019 Median Household Income $35,173 $37,9699,347627 $36,0220.9%45.7% Age 20 - 24 285 9.3% FemalePacific2024 Islander Median Household Income $38,244 $41,22211,12628 $38,5880.0%54.3% AgeSome 252019-2024 - Other29 Ra Annualce Rate 1.69% 1.66%556292 1.39%0.8%9.5% PopulationPoAgepulationAverage 30 - 34 byRe Household portingAge Two Incomeor More Races 1,089249 1.5%8.1% Age 35 - 39 206 6.7% Total 2019 Average Household Income $48,661 $51,86120,471 $52,051100.0% TotalAge Hispanic 400 - -4 44 Population 1,6501,492218 2.3%7.1%7.3% 2024 Average Household Income $55,218 $58,594 $58,663 Age 455 - -9 49 1,451196 6.4%7.1% Population2019-2024 by Sex Annual Rate 2.56% 2.47% 2.42% Age 5010 - 5414 1,394207 6.7%6.8% MalePer Capita Income 33,431 46.1% Age 5515 - 5919 1,421176 5.7%6.9% Female2019 Per Capita Income $20,995 $22,42239,166 $20,65153.9% Age 6020 - 6424 1,582141 4.6%7.7% Age 652024 - 69 Per Capita Income $23,756 $25,322 87 $23,2622.8% PopulationAge 25 - 29 by Age 1,724 8.4% Age 702019-2024 - 74 Annual Rate 2.50% 2.46% 52 2.41%1.7% TotalAge 30 - 34 72,5961,562 100.0%7.6% Age 75 - 79 41 1.3% AgeHouseholds 035 - -4 39 by Income 5,4671,363 7.5%6.7% Age 80 - 84 28 0.9% AgeCurrent 540 - -9 44 median household income is $36,022 in the area, compared to $60,548 for all U.S. households. Median5,269 1,358household income is 7.3%6.6% Age 85+ 19 0.6% Ageprojected 1045 - 1449 to be $38,588 in five years, compared to $69,180 for all U.S. households 5,2161,398 7.2%6.8% Age 1550 - 1954 5,2181,321 7.2%6.5% AgeCurrent 18+ average household income is $52,051 in this area, compared to $87,398 for all U.S. households. Average2,282 household income is 74.3% Age 2055 - 2459 5,1231,287 7.1%6.3% Ageprojected 65+ to be $58,663 in five years, compared to $99,638 for all U.S. households 227 7.4% Age 2560 - 2964 5,351985 7.4%4.8% AgeCurrent 3065 - 3469 per capita income is $20,651 in the area, compared to the U.S. per capita income of $33,028. The per 4,908capita697 income is projected6.8%3.4% to Agebe 3570 $23,262 - 3974 in five years, compared to $36,530 for all U.S. households 4,447483 6.1%2.4% Age 4075 - 4479 4,361398 6.0%1.9% Housing Age 4580 - 4984 4,819297 6.6%1.5% Age 5085+2019 - 54 Housing Affordability Index 114 1324,912261 6.8%1.3%136 Page | 6 Age 552000 - 59 Total Housing Units 1,186 8,4454,634 29,5676.4% Age 6018+ -2000 64 Owner Occupied Housing Units 502 4,67615,2883,793 18,2985.74.7%2% AgAgee 6565+ -2000 69 Renter Occupied Housing Units 584 3,1892,7842,136 9,2863.8%10.4% Age 70 -2000 74 Vacant Housing Units 100 5802,145 1,9833.0% Age 752010 - 79 Total Housing Units 1,399 9,4661,721 30,6872.4% Age 80 -2010 84 Owner Occupied Housing Units 662 4,7531,314 17,7461.8% Age 85+2010 Renter Occupied Housing Units 652 4,1091,115 10,9571.5% 2010 Vacant Housing Units 85 604 1,984 Age 18+ 53,510 73.7% Data No2019te: Hi spanicTotal Housingpopulation Units can be of any race. Census 2010 medians are computed from reported1,364 data distributions. 9,239 30,037 Age 65+ 9,079 12.5% Source: U.S.2019 Census Owner Bureau, Occupied Census Housing 2010 Summary Units File 1. Esri converted Census 2000 data into 2010598 geography. 4,084 15,542 2019 Renter Occupied Housing Units 675 4,464 August12,221 19, 2019 2019 Vacant Housing Units 91 691 2,274 2024 Total Housing Units 1,370 9,268 30,123 ©2019 Esri Page 1 of 12 2024 Owner Occupied Housing Units 590 4,041 15,356 2024 Renter Occupied Housing Units 640 4,217 11,501 2024 Vacant Housing Units 139 1,010 3,266 Data Note: Hispanic population can be of any race. Census 2010 medians are computed from reported data distributions. Source:Currentl U.S. Censusy, 51.7% Bureau, of the Census 30,037 2010 housing Summary units File 1.in Esrithe coareanve rtedare Censusowner 2000occupied; data into 40.7% 2010, geogrenterrap hy.occupied; and 7.6% are vacant. Currently, in the U.S., 56.4% of the housing units in the area are owner occupied; 32.4% are renter occupied; and 11.2% are vacant. In 2010, there were 30,687 housing units in the area - 57.8% owner occupied, 35.7% renter occupied, and 6.5% vacant. The annual rate of changeAugust in 19, 2019 housing units since 2010 is -0.95%. Median home value in the area is $134,391, compared to a median home value of $234,154 for the U.S. In five years, median value is projected to change by 2.20% annually to $149,840. ©2019 Esri Page 5 of 12

Data Note: Hispanic population can be of any race. Census 2010 medians are computed from reported data distributions. Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri converted Census 2000 data into 2010 geography.

August 19, 2019

Data Note: Income is expressed in current dollars. Housing Affordability Index and Percent of Income for Mortgage calculations are only available for areas with 50 or more owner-occupied housing units. Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2019 and 2024. Esri converted Census 2000 data into 2010 geography.

August 19, 2019

MAJOR EMPLOYERS (OVER 1,000 EMPLOYEES)

Barksdale Air Force Base 14,500 AREA RANKINGS Caddo Parish Public Schools 9,416 AREA AREA PROFILE Willis-Knighton Medical Center 7,082 North Louisiana Ranks as #1 Lowest Cost of Doing Business Study by nlep.com, 2017 Bossier Parish School Board 3,000 Shreveport—Bossier MSA ranked #10 for Economic Development LSU Health Shreveport 2,762 Site Selection, March 2012 University Health 2,673 City of Shreveport 2,569 Listed in the Top 19 Places Where It May Be Easier To Make Your Mark Horseshoe Bossier City 2,532 Forbes.com, September 2014 State of Louisiana Civil Service 2,380 Wal-Mart Stores, Inc. 2,001 Shreveport among Top 20 Fastest Growing Cities in U.S. Christus Schumpert Health 1,980 NerdWallet.com, June 2013 US Dept. of Veterans Affairs 1,682 Teleperformance, Inc. 1,623 Shreveport ranks #1 Place to Start A Business Sam’s Town Casino 1,265 WalletHub, 2016 Eldorado Resort Casino 1,214 Diamond Jacks Casino 1,200 Shreveport ranks Number 4 Nationally for Economic Potential Margaritaville Resort Casino 1,052 nlep.com, 2017 1 MILE 3 MILE 5 MILE Source: North Louisiana Economic Partnership nlep.org Shreveport-Bossier MSA ranks No. 10 for Lowest Cost of Living Business Facilities, 2017

Ten Oil & Gas Rich Markets that Offer Plenty to Non-Oil Related Companies Southern Business & Development, April 2013

Benteler Steel/Tube among “Top North American Deals of 2012” 2nd largest investment in the U.S. during 2012 Site Selection, May 2013

North Louisiana ranks as the no.1 most cost competitive with a Business Index of 91.3.

AREA RANKINGS AREA KPMG Competitive Alternatives, 2016

Shreveport-Bossier MSA ranks No. 2 as an Emerging Cybersecurity Hub Business Facilities, 2017

Shreveport ranks in “Top Ten of Millennial Friendly Cities.” Bloomberg Business, 2015 Page | 7

8100 Pines Road, Shreveport, LA 71129

Property Highlights:

Units: 192 Average Square Feet: App. 756 Year Built: App. 1978 Parking Spaces: App. 350 Total Square Feet: App. 145,088 Type of Building: Two Story Garden Style

Willow Trace offers residents primarily seven (7) floor plans averaging 756 square feet, comprised of

1 and 2 bedroom units. The 24 two-story garden style buildings are of woodframe construction with

painted stucco, brick veneer, vinyl siding and wood trim with sloped asphalt composition shingled

roofs. Wiring at Willow Trace is copper; plumbing is CPVC and PVC.

UNIT MIX Unit Count Unit Description 56 1BR/1BA - 527 sq ft 16 1BR/1BA - 696 sq ft 32 1BR/1BA - 715 sq ft 16 1BR/1BA - 830 sq ft 32 2BR/1BA - 880 sq ft 16 2BR/2BA - 940 sq ft 24 2 BR/2.5 BA - 1,045 sq ft

Page | 8 LOCATION - WILLOW TRACE 8100 PINES ROAD, SHREVEPORT, LA 71129

8100 Pines Road, Shreveport, LA 71129 N LOCATION DESCRIPTION LOCATION

3132

Willow Trace

3132

Willow Trace

Page | 9 NEIGHBORHOOD AERIAL - WILLOW TRACE 8100 PINES ROAD, SHREVEPORT, LA 71129 AERIAL Downtown Shreveport Dallas, TX Pines Rd. Libbey Glass Calumet N 580+ Employees Lubricants 300 Employees

Huntington High School th W. 70 Street Evangel Learning Center

Hyundai - Glovis (Former GM Plant) Ivan Smith

Buncombe Rd. Willow Trace Coca Cola 3132 Tire Rack Summer Grove Church

TELEPERFORMANCE 1,620+ Employees Bert Kouns Loop

Page | 10 FLOOR PLANS - WILLOW TRACE

1 BED - 1 BATH 1 BED - 1 BATH 527 SQ FT 696 SQ FT FLOOR PLANS FLOOR (56 UNITS) (16 UNITS)

1 BED - 1 BATH 2 BED - 2 BATH Bedroom TOWNHOME 830 SQ FT 715 SQ FT (16 UNITS) (32 UNITS)

Page | 11 FLOOR PLANS - WILLOW TRACE

2 BED-1 BATH 2 BED-2 BATH 880 SQ FT 940 SQ FT FLOOR PLANS FLOOR (32 UNITS) (16 UNITS)

2 BED-2.5 BATH 1045 SQ FT (24 UNITS)

Page | 12 SITE PLAN/AERIAL VIEW - WILLOW TRACE

SITE PLAN SITE N

Pines Road

Foxborough Cove

Page | 13 SITE PLAN/AERIAL VIEW - WILLOW TRACE

Pool PLAN SITE 11 Maintenance 10 9 13 8 14

15 7 16 17 18 6 Tennis Court 19 5 20 LAUNDRY 4 OFFICE Pool 22 23 3

24 2 Tennis Court 1 Road Pines 25 26

Page | 14 WILLOW TRACE AMENITIES Unit Amenities

W/D Connections in 136 units AMENITIES Fireplace In Select Units Wet Bar In Select Units Mini And Vertical Blinds Floor To Ceiling Pantry Oversized Closets Ceiling Fans Floor To Ceiling Linen Closets Patio/Balcony

Community Amenities: 2 Tennis Courts 24 Hour Emergency Service Clothing Care Center 2 Swimming Pools Pet Friendly Sundeck Online Resident Services On Site Maintenance On Site Management Online Rent Pay Courtesy Patrol Public Transportation Page | 15 COMPARABLE PROPERTIES - RENTAL

1 2 SUBJECT: Willow Trace Fox Trail Ashton Pines Apartments RENTAL - COMPARABLES 8100 Pines Road 7000 Red Fox Trail 6000 W 70th Street Shreveport, LA 71129 Shreveport, LA 71129 Shreveport, LA 71129

Units: 192 Units: 144 Units: 184 Built: 1978 Built: 1971 Built: 1973 Occupancy: 91% Occupancy: 92% Occupancy: 94% Avg. SF: 756 Avg. SF: 809 Avg. SF: 848 Avg Rent: $611 Avg Rent: $620 Avg Rent: $701 Avg Rent / SF: $0.81 Avg Rent / SF: $0.77 Avg Rent / SF: $0.83

3 4 5 Foxborough Cove Riverdale Westwood Village Apartments 8200 Pines Road 6800 Rasberry Lane 6777 Rasberry Lane Shreveport, LA 71129 Shreveport, LA 71129 Shreveport, LA 71129

Units: 272 Units: 184 Units: 248 Built: 1982 Built: 1980 Built: 1980 Occupancy: 96% Occupancy: 94% Occupancy: 95% Avg. SF: 783 Avg. SF: 922 Avg. SF: 828 Avg Rent: $685 Avg Rent: $735 Avg Rent: $680 Page | 16 Avg Rent / SF: $0.87 Avg Rent / SF: $0.80 Avg Rent / SF: $0.82 COMPARABLE PROPERTIES - RENTALS

4 5 2

1 RENTAL - COMPARABLES OF MAP

3 Willow Trace

Fox Trail Ashton Pines Foxborough Cove Riverdale Westwood Village 1 7000 Red Fox Trail 2 6000 W. 70th 3 8200 Pines Road 4 6800 Rasberry Lane 5 6777 Rasberry Lane Shreveport, LA 71129 Shreveport, LA 71129 Shreveport, LA 71129 Shreveport, LA 71129 Shreveport, LA 71120

Page | 17 FINANCIALS - PROFORMA

Property Information Assumptions/Willow Trace

Discounted Cash Flow Variables

Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10 PROFORMA

Rent Bumps/Escalation 1.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% Escalation for Expenses 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% Taxes on Property 0.00% 60.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Vacancy Rate 9.00% 9.00% 9.00% 9.00% 9.00% 9.00% 9.00% 9.00% 9.00% 9.00% Fee Income Growth Rate 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00%

10 year Cash Flow Projections

Acquisition EOY1 EOY2 EOY3 EOY4 EOY5 EOY6 EOY7 EOY8 EOY9 EOY10

Income Scheduled Market Rent $1,407,816 $1,451,884 $1,496,834 $1,542,683 $1,589,448 $1,621,237 $1,653,662 $1,686,735 $1,720,470 $1,754,879 Less: Vacancy Loss ($126,703) ($130,670) ($134,715) ($138,841) ($143,050) ($145,911) ($148,830) ($151,806) ($154,842) ($157,939)

Plus: Renovated Interior/Exterior (48 units/year@$50) $15,600$ 15,600 $15,600 $15,600

Projected Scheduled Market Rent $1,423,416 $1,467,484 $1,512,434 $1,558,283 $1,589,448 $1,621,237 $1,653,662 $1,686,735 $1,720,470 $1,754,879 Net Rental Income $1,296,713 $1,336,815 $1,377,719 $1,419,441 $1,446,398 $1,475,326 $1,504,832 $1,534,929 $1,565,628 $1,596,940 Plus: Fee Income $125,000 $126,250 $127,513 $128,788 $130,076 $131,376 $132,690 $134,017 $135,357 $136,711 Plus: Other Income $60,000 $60,600 $61,206 $61,818 $62,436 $63,061 $63,691 $64,328 $64,971 $65,621 Total Operating Income $1,481,713 $1,523,665 $1,566,437 $1,610,047 $1,638,910 $1,669,763 $1,701,214 $1,733,274 $1,765,956 $1,799,272

Operating Expenses Administrative $ 25,000 $ 25,250 $ 25,503 $ 25,758 $ 26,015 $ 26,275 $ 26,538 $ 26,803 $ 27,071 $ 27,342 Advertising & Promotion $ 18,000 $ 18,180 $ 18,362 $ 18,545 $ 18,731 $ 18,918 $ 19,107 $ 19,298 $ 19,491 $ 19,686 Payroll $ 200,000 $ 202,000 $ 204,020 $ 206,060 $ 208,121 $ 210,202 $ 212,304 $ 214,427 $ 216,571 $ 218,737 Building/Maintenance Expense $ 200,000 $ 202,000 $ 204,020 $ 206,060 $ 175,000 $ 176,750 $ 178,518 $ 180,303 $ 182,106 $ 183,927 Management Fee $ 45,000 $ 45,450 $ 45,905 $ 46,364 $ 46,827 $ 47,295 $ 47,768 $ 48,246 $ 48,729 $ 49,216 Utilites - Electric/Trash $ 45,000 $ 45,450 $ 45,905 $ 46,364 $ 46,827 $ 47,295 $ 47,768 $ 48,246 $ 48,729 $ 49,216 Utilities - Water/Sewer $ 80,000 $ 80,800 $ 81,608 $ 82,424 $ 83,248 $ 84,081 $ 84,922 $ 85,771 $ 86,629 $ 87,495 Real Estate Taxes $ 55,000 $ 55,000 $ 88,000 $ 88,000 $ 88,000 $ 88,000 $ 88,000 $ 88,000 $ 88,000 $ 88,000 Insurance $ 55,000 $ 55,550 $ 56,106 $ 56,667 $ 57,233 $ 57,806 $ 58,384 $ 58,967 $ 59,557 $ 60,153 Replacement Reserve $ 57,600 $ 57,600 $ 57,600 $ 57,600 $ 57,600 $ 57,600 $ 57,600 $ 57,600 $ 57,600 $ 57,600 Total Expenses $ 780,600 $ 787,280 $ 827,027 $ 833,841 $ 807,603 $ 814,223 $ 820,909 $ 827,662 $ 834,483 $ 841,371

Net Operating Income (NOI) $ 701,113 $ 736,385 $ 739,411 $ 776,206 $ 831,307 $ 855,540 $ 880,305 $ 905,612 $ 931,474 $ 957,901

Important Information/Disclaimer: The information obtained herein is assumed to be correct and market supported. Output produced from this model should not be considered an appraisal. Projections are forecasts and are not to be considered fact. The information contained in this file is privileged and confidential: it is intended only for use by Vintage Realty and their clients. This file may not be reproduced physically or in electronic Page | 18 format without the written consent of Vintage Realty Company. 8/2019 FINANCIALS - NOTES TO PROFORMA Income Assumptions: Expense Assumptions: SCHEDULED MARKET RENT: 1% annual rent growth based on All expense assumptions are a result of the past twelve months current trajectory and market trend. operating history of the property coupled with a detailed look at both the market averages and similar garden style communities in LESS VACANCY LOSS: Studying the recent trailing history and the the region with a 1% increase annually to account for inflation and submarket the property is in, we project 9% economic vacancy for historical sub market growth, with some exceptions noted below: PROFORMA TO NOTES the entire period of this analysis. These estimates are in line with recent historical trends for the property and consistent with the ADMINISTRATIVE: Includes all office expenses, legal, eviction, anticipated market growth given excellent management. and bad debt. RENTING: Includes advertising, marketing and promotional, RENOVATED UNIT PREMIUM: The line items includes rental renters insurance, and RUBS billing fees. premium captured by the renovation of 192 units at Willow Trace PAYROLL: Manager, leasing, and maintenance salaries are over the next 48 months (renovations could include either/and included, as well as payroll, overtime and benefits and are in line new appliance package, upgraded kitchen countertops, upgraded with per unit cost for Shreveport. flooring, etc.) Projections assumed that 4 units will be renovated each month. With an average premium of $50/unit for the upgrades, BUILDING/MAINTENANCE EXPENSE/COMMON AREA: an additional $15,600 for all four years (update 4 units/month x $50 A combination of repairs and maintenance, contract services, premium over 48 months, completing all 192 units in 48 months) maintenance supplies, repairs, and grounds, all taken from trailing This would all bring all 192 units online by end of year four. The 12 months expense statements, as well as comparable properties Renovated Unit premium for each year is added to the schduled with similar age and amenities. This expense is increased over first Market Rent of the following year by the defined growth rate. four years of 10 year projections to include additional costs for renovated units, but decreased to market averages after year four. FEE INCOME: Includes all income related to lease charges, including MANAGEMENT FEE: Management Fee is 3% of Total Operating cable and damage fees, forfeited deposits, late charges, month-to- Income. month fees, notice fees and NSF fees. UTILITIES: Includes electricity costs, water and sewer, trash removal, and vacant apartments. OTHER INCOME: Includes pet rent, vending income, and other miscellaneous income. Also includes RUBS income for water and TAXES: We are projecting an increase in taxes with the close sewer. of a sale and have projected a 60% increase in year 3 given the comparable property tax rates in the immediate area. INSURANCE: Owner’s current rates are consistent with the market averages and similar rates are used in this pro-forma. RESERVES: $300 per unit is used for reserves. PagePage | 19| 19 COMPARABLE PROPERTIES - SALES

1 2 3 SALES - COMPARABLES Northpointe Villages of Williamsburg Towers at Cross lake 2604 Benton Road, Bossier City, LA 71111 3215 Knight Street, Shreveport, LA 71105 5635 South Lakeshore Drive, Shreveport, LA 71119 Built: 1984 Built: 1974 Built: 1986 Units: 104 Units: 194 Units: 91 Price/Unit: $60,577 Price/Unit: $54,123 Price/Unit: $54,945 Sold For: $$6,300,000 Sold For: $10,500,000 Sold For: $5,000,000 Closed: 2017 Closed: 2019 Closed: 2018 Cap Rate: 7% Cap Rate: 7.5% Cap Rate: 7.25%

4 5 6 St. Charles Place Fox Trail Van Mark 2000 Old Minden Road, Bossier City, LA 71111 7000 Red Fox Trail, Shreveport, LA 71129 3980 Old Sterlington Road, Monroe, LA 71203 Built: 1975 Built: 1972 Built: 1984 Units: 226 Units: 144 Units: 144 Price/Unit: $50,885 Price/Unit: $44,965 Price/Unit: $63,194 Sold For: $11,500,000 Sold For: $6,475,000 Sold For: $9,100,000 Closed: 2019 Closed: 2019 Closed: 2019 Cap Rate: 7.5% Cap Rate: 7.8% Cap Rate: 7.25% Page | 20 COMPARABLE PROPERTIES - SALES

6 1

4 MAP OF COMPARABLES - SALES - COMPARABLES OF MAP 3 2

171 5

Willow Trace

Northpointe Villages of Williamsburg Towers at Cross Lake St. Charles Place Fox Trail Van Mark 1 2604 Benton Road 2 3215 Knight Street 3 5635 South Lakeshore 4 2000 Old Minden 5 7000 Red Fox Circle 6 3980 Old Sterlington Bossier City, LA 71111 Shreveport, LA Shreveport, LA 71119 Bossier City, LA 71111 Shreveport, LA 71129 Monroe, LA 71203

Page | 21 VINTAGE REALTY COMPANY - FULL SERVICE COMMERCIAL REAL ESTATE PROVIDER

Vintage Realty is a privately owned, full-service commercial real estate provider, specializing in the leasing, management, development and Shreveport brokerage of professional office, medical office, industrial, multi-family and Bossier City Monroe retail properties.

Alvin Childs, Jr. and David Alexander are the principal partners of the organization and began Vintage Realty Company in 1988 to meet the demands of the expanding commercial real estate market in Shreveport, Louisiana. In its over 30 year existence, Vintage has established a strong foothold in 8 additional markets. Alexandria From property acquisition to property management solutions, we provide a complete line of commercial real estate services. Vintage realizes that an owner’s property represents a large investment, therefore Vintage’s core belief is to treat all assets the same - as if they were their own. From preparing and Baton Rouge following budgets to implementing marketing plans, contract negotiations to Gonzales Lafayette Covington closings, Vintage ensures that a property gets the attention it deserves. Sulphur Lake Charles Youngsville The Multi-Family Department was created in 1993 as a response to a client request for development and management of a class A apartment community in Shreveport, LA. Since that initial development, David Alexander has been in charge of the numerous projects totaling 3,811 units throughout Louisiana and Arkansas with another 760 units in the development phase. The current Vintage multi-family portfolio represents a total Established Communities market value of approximately $450,000,000. (February 2018) The Multi Family Department at Vintage Realty Company has enjoyed a reputation as one Under Construction or In Development of the most progressive and dynamic apartment development, management and brokerage firms in Louisiana.

Page | 22 VINTAGE REALTY COMPANY - NOTABLE CLIENTS & MANAGED PROPERTIES

C-III Capital Management & Bossier Corners Shopping Center 173,614 sq. ft. Anenberg Asset Management

Crow Holdings Capital Shoppes at Bellemead 79,300 sq. ft

Hudson Advisors Mid-City Plaza South 45,800 sq. ft.

The Brookhill Group Huntington Park Shopping Center 59,265 sq. ft. Plantation Plaza Shopping Center 59,479 sq. ft.

F & A Buckner Square, Ltd. 1800 Buckner Square 53,459 sq. ft.

Anderson Oil & Gas, Inc. Provenance Traditional Neighborhood Development 350+ acres

Beaird Operating Companies, L.L.C. Beaird Tower 182,987 sq. ft.

Beaird Properties, L.L.C. One Texas Center 41,185 sq. ft. Southpointe Center 42,951 sq. ft.

Franks Management Company, L.L.C. Petroleum Square I 20,421 sq. ft. Petroleum Square II 41,205 sq. ft.

CHRISTUS Health Shreveport/Bossier Shreveport-Bossier City – 23 properties 542,672 sq. ft.

CHRISTUS St. Michael Health Texarkana, Texas -- 8 properties 273,508 sq. ft.

Kennedy Wilson RiverScape Apartment Homes 312,000 sq. ft.

Other Leasing/Management Assignments: Pierremont Office Park 195,244 sq. ft. Windrush Village 17,057 sq. ft. Knight St. Associates 45,000 sq. ft. Broadmoor Shopping Center 16,800 sq. ft. Millicent Park Place 35,500 sq. ft. Airline Retail Center 12,600 sq. ft. Line Olive 22,877 sq. ft. 6930 - 6950 Fern Avenue 11,500 sq. ft.

Page | 23 AGENT INFORMATION - JOHN A. HAMILTON

John A. Hamilton is a graduate of Louisiana State University in Shreveport in Business and Administration. After spending his first three years after graduation with a local Shreveport firm, he started Hamilton & Associates Real Estate Companies that specialized in the brokerage and development of all classifications of Multi-Family. John now brings his expertise to Vintage Realty Company to offer the full complement of consulting, development, brokerage, and management to all his Multi-Family clients. John A. Hamilton and Vintage Realty Company are licensed in and operate in Arkansas, Mississippi and Louisiana.

To contact John, call 318-222-2244 or email him at [email protected].

Below are some of the Multi-Family Properties sold by John A. Hamilton in recent years:

Live Oaks Apartments Parc at Ridgeland Apartments Bayou Rouge Apartments Towne Oaks Apartments Villa Norte Apartments Brighton Manor Apartments Chimney Hill Apartments Brandywine Apartments Centrum Apartments Hampton House Apartments Pines Apartments Cordova Apartments Grimmett Drive Apartments Towers Apartments Country Club Marina Apartments Park Place Apartments Briarwood Apartments Colony Square Apartments Briarwood Apartments Laurel Park Apartments Northgate Apartments Camellia Trace Apartments Orleans Square Apartments Quail Creek Apartments Hudson Place Apartments Stone Canyon Apartments Shirewood Apartments Guthrie Creek Apartments Southern Oaks Apartments Southport Apartments Kings Manor I Apartments Northwood Lake Apartments Tiffany Square Apartments Chateau Normady North Forty Estates Woodlawn Terrace Apartments Kings Manor II Apartments River Oaks Apartments

Page | 24 AGENT INFORMATION - LUKE NICHOLLS

Luke is licensed Commercial Real Estate Agent focusing on Multi-Family Brokerage and Development at Vintage Realty Company in Shreveport, Louisiana. He partners with John Hamilton to form a multi-family brokerage team that can provide a wide range of services to multi-family clients in Louisiana, Mississippi, Texas, and Arkansas.

Luke has been working in the commercial real estate market since 2014, and has experience in asset management, budgeting, real estate valuations, and brokerage.

Luke holds a Bachelor’s of Science in Accounting from Louisiana State University-Shreveport. In addition, Luke studied International economics, business relations, and business law in Luneburg, Germany at Leuphana Universitad.

To contact Luke, email [email protected] or call 318-222-2244 x 686.

Page | 25 For additional information, please contact the agent at this toll free number: 1-877-806-4791

John A. Hamilton Luke Nicholls [email protected] [email protected]

For additional information, please contact the agents at this toll free number: 1-877-806-4791 330 Marshall Street, Suite 200 | Shreveport, LA 71101 | website: www.vintagemultifamily.com