BERKSHIRE COURT, KENSINGTON SQUARE, AND DEVONSHIRE VILLAGE SHREVEPORT, LA

OFFERING MEMORANDUM CAPITAL MARKETS | INVESTMENT PROPERTIES TABLE OF CONTENTS

3 EXECUTIVE SUMMARY

15 FINANCIAL ANALYSIS

25 RENT COMPARABLES

35 SALE COMPARABLES EXECUTIVE SUMMARY Executive summary

BERKSHIRE COURT, KENSINGTON SQUARE, INVESTMENT HIGHLIGHTS AND DEVONSHIRE VILLAGE RENTAL UPSIDE Current asking rents are $150-250 below maximum allowable rents, 2120/2130/2140 NORTH HEARNE AVENUE with opportunity to increase rents immediately SHREVEPORT, LA 71107 ATTRACTIVE PRICE PER UNIT Well below replacement cost and sales comparables Units: 150 Year built: 2002/2003/2002 LIHTC RESTRICTIONS Price: $4,150,000 Only 13 years left on LIHTC restrictions on the majority of units Price per unit: $27,667 RESYNDICATION Section 42 LIHTC Excellent resyndication opportunity with 10-year chain of title intact and located in a Qualified Census Tract (QCT) Financing: New NEW FINANCING Year 0 cap rate: 7.11% Buyer may place new financing on the asset 10-year leveraged IRR: 18.15% 10-year average cash-on-cash: 14.41% PROPERTY HIGHLIGHTS

UNIT FEATURES Rentable square feet: 113,400 One-, two-, three-, and four-bedroom units feature a self-cleaning Price per square foot: $36.60 oven, refrigerator, and air conditioning COMMUNITY FEATURES Initial TCCP ends: 2016/2018/2016 Community amenities include a leasing office, clubhouse, on-site Final year of LIHTC restrictions: 2031/2033/2031 laundry facility, barbeque and picnic area, and playground Qualified Contract Eligible

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Berkshire Court, Kensington Square, and Devonshire Village | 4 Executive summary

BERKSHIRE COURT PROPERTY DETAIL

YEAR BUILT 2002 RENTAL WASHERS/DRYERS No

NUMBER OF BUILDINGS 13 WATER Paid by owner

NUMBER OF UNITS 58 ELECTRIC Swepco

NUMBER OF STORIES 1 TELEPHONE AT&T

PARCEL NUMBER 181423-000-0135-00 FOUNDATION Slab on grade

ZONING Residential FRAMING Wood

LOT SIZE 5 acres EXTERIOR Vinyl siding

DENSITY 11.6 units/acre PARKING SURFACE Concrete

PARKING SPACES 123 ROOF Pitched

PARKING RATIO 2.12 spaces/unit AGE OF ROOF 16 years

LANDSCAPING Trees, shrubs, grass HVAC Individual heat pumps

TOPOGRAPHY Flat WIRING Copper

IN-UNIT WASHER/DRYER No FIRE PROTECTION Smoke detectors

WASHER/DRYER Yes PLUMBING PVC CONNECTIONS

BERKSHIRE COURT AFFORDABLE RESRTICTIONS

Berkshire Court currently operates under the Section 42 Low Income Housing Tax Credit (LIHTC) program, and has the following restrictions. Buyer must agree to maintain the affordable restrictions through the extended use period, including operating the property in compliance with state and federal regulatory agreements.

INITIAL TCCP ENDS: 2016 CADDO PARISH, LA (SHREVEPORT-BOSSIER CITY, LA MSA) FINAL YEAR OF RESTRICTIONS: 2031 2018 4-PERSON AMI: $62,700 • LIHTC LURA: Restricts 100% of units at 60% AMI, and 25% of units are income-only restricted at 20% 2018 INCOME LIMITS 20% 60% AMI AMI 1 person $8,780 $26,340 2 people $10,040 $30,120 3 people $11,300 $33,900 4 people $12,540 $37,620 5 people $13,560 $40,680 6 people $14,560 $43,680

Berkshire Court, Kensington Square, and Devonshire Village | 5 Executive summary

KENSINGTON SQUARE PROPERTY DETAIL

YEAR BUILT 2003 RENTAL WASHERS/DRYERS No

NUMBER OF BUILDINGS 12 WATER Paid by owner

NUMBER OF UNITS 40 ELECTRIC Swepco

NUMBER OF STORIES 1 TELEPHONE AT&T

PARCEL NUMBER 181423-000-0137-00 FOUNDATION Slab on grade

ZONING Residential FRAMING Wood

LOT SIZE 4.08 acres EXTERIOR Vinyl siding

DENSITY 9.80 units/acre PARKING SURFACE Concrete

PARKING SPACES 97 ROOF Pitched

PARKING RATIO 2.43 spaces/unit AGE OF ROOF 14 years

LANDSCAPING Trees, shrubs, grass HVAC Individual heat pumps

TOPOGRAPHY Flat WIRING Copper

IN-UNIT WASHER/DRYER No FIRE PROTECTION Smoke detectors

WASHER/DRYER Yes PLUMBING PVC CONNECTIONS

KENSINGTON SQUARE AFFORDABLE RESRTICTIONS

Kensington Square currently operates under the Section 42 Low Income Housing Tax Credit (LIHTC) program, and has the following restrictions. Buyer must agree to maintain the affordable restrictions through the extended use period, including operating the property in compliance with state and federal regulatory agreements.

INITIAL TCCP ENDS: 2018 CADDO PARISH, LA (SHREVEPORT-BOSSIER CITY, LA MSA) FINAL YEAR OF RESTRICTIONS: 2033 2018 4-PERSON AMI: $62,700 • LIHTC LURA: Restricts 100% of units at 60% AMI

2018 INCOME LIMITS 60% AMI 1 person $26,340 2 people $30,120 3 people $33,900 4 people $37,620 5 people $40,680 6 people $43,680

Berkshire Court, Kensington Square, and Devonshire Village | 6 Executive summary

DEVONSHIRE VILLAGE PROPERTY DETAILS

YEAR BUILT 2002 RENTAL WASHERS/DRYERS No

NUMBER OF BUILDINGS 13 WATER Paid by owner

NUMBER OF UNITS 52 ELECTRIC Swepco

NUMBER OF STORIES 1 TELEPHONE AT&T

PARCEL NUMBER 181423-000-0134-00 FOUNDATION Slab on grade

ZONING Residential FRAMING Wood

LOT SIZE 5 acres EXTERIOR Vinyl siding

DENSITY 10.4 units/acre PARKING SURFACE Concrete

PARKING SPACES 105 ROOF Pitched

PARKING RATIO 2.02 spaces/unit AGE OF ROOF 16 years

LANDSCAPING Trees, shrubs, grass HVAC Individual heat pumps

TOPOGRAPHY Flat WIRING Copper

IN-UNIT WASHER/DRYER No FIRE PROTECTION Smoke detectors

WASHER/DRYER In select units PLUMBING PVC CONNECTIONS

DEVONSHIRE VILLAGE AFFORDABLE RESRTICTIONS Devonshire Village currently operates under the Section 42 Low Income Housing Tax Credit (LIHTC) program, and has the following restrictions. Buyer must agree to maintain the affordable restrictions through the extended use period, including operating the property in compliance with state and federal regulatory agreements.

INITIAL TCCP ENDS: 2016 CADDO PARISH, LA (SHREVEPORT-BOSSIER CITY, LA MSA) FINAL YEAR OF RESTRICTIONS: 2031 2018 4-PERSON AMI: $62,700 • LIHTC LURA: Restricts 100% of units at 60% AMI, and 25% of units are income-only restricted at 20% 2018 INCOME LIMITS 20% 60% AMI AMI 1 person $8,780 $26,340 • 25% of units (13 units) are for specials needs 2 people $10,040 $30,120 households 3 people $11,300 $33,900 4 people $12,540 $37,620 5 people $13,560 $40,680 6 people $14,560 $43,680

Berkshire Court, Kensington Square, and Devonshire Village | 7 Executive summary

UNIT AMENITIES Self-cleaning oven | Refrigerator | Air conditioning

Berkshire Court, Kensington Square, and Devonshire Village | 8 Executive summary

COMMUNITY AMENITIES Leasing office | Clubhouse | On-site laundry facility | Barbecue and picnic area | Playground

Berkshire Court, Kensington Square, and Devonshire Village | 9 Executive summary

LOCAL MAP WALMART SUPERCENTER

SHREVEPORT DOWNTOWN AIRPORT

BERKSHIRE COURT TINSLEY ATHLETIC COMPLEX DEVONSHIRE VILLAGE KENSINGTON SQUARE PIERRE BOSSIER MALL SHREVEPORT

BARKSDALE AIR FORCE BASE SHREVEPORT MUNICIPAL AUDITORIUM

OVERTON BROOKS VA MEDICAL CENTER SAVE-A-LOT

MEADOWS MUSEUM OF ART

SHREVE CITY SHOPPING

REGIONAL MAP

EAST TEXAS REGIONAL AIRPORT KENSINGTON, DEVONSHIRE, BERKSHIRE

KISATCHIE NATIONAL FOREST

TEXAS A&M UNIVERSITY LOUISIANA STATE UNIVERSITY BATON ROUGE

Berkshire Court, Kensington Square, and Devonshire Village | 10 Executive summary

AERIAL MAP

BERKSHIRE COURT

DEVONSHIRE VILLAGE

KENSINGTON SQUARE

Berkshire Court, Kensington Square, and Devonshire Village | 11 Executive summary

SHREVEPORT, LA

LOCATION OVERVIEW GROCERY STORES Shreveport is located in the northwest region of Louisiana extending » along the western side of the Red River and part of Caddo Parish. » COUNTY MARKET (1.1 MILES) »» BROOKSHIRE’S OF SHREVEPORT (2.3 MILES) The city is also situated in the 200-mile wide area known as “Ark-La- »» SAVE-A-LOT (3.8 MILES) Tex,” where the borders of Arkansas, Louisiana, and Texas meet. Pine »» QUICK PACK GROCERY (5.3 MILES) forests, cotton fields, wetlands, and waterways sweep the outskirts of the city, offering beautiful hiking paths and a diverse range of NEIGHBORHOOD AMENITIES scenery for wildlife viewing. The proximity of the properties to Red »» SHREVE MEMORIAL LIBRARY (2.8 MILES) River and Cross Lake provides ample opportunity for fishing, including »» SHREVEPORT FARMERS’ MARKET (2.8 MILES) competitions such as the Fishing League Worldwide College Fishing »» YMCA (2.8 MILES) Tournament and the Bass Pro Shops Central Open. »» US POST OFFICE (4.0 MILES) »» ANYTIME FITNESS (6.3 MILES) Unique opportunities for shopping are a hallmark of the area. The 850,000-square-foot Louisiana Boardwalk is the largest collection of RETAIL AND RESTAURANTS shopping, dining, and entertainment spaces in the state and is also one of the most popular tourist attractions. Shreveport also benefits »» PODNUH’S BAR-B-Q (1.3 MILES) »» WAFFLE HOUSE (5.7 MILES) from a range of multimodal transportation. Both Shreveport Downtown »» FUMBLEBREWSKI SPORTS GRILL & BAR (2.3 MILES) Airport and Shreveport Regional Airport are centrally located, with »» LOUISIANA BOARDWALK (3.3 MILES) quick access via interstates 20, 49, and 220. BASS PRO SHOPS, BANANA REPUBLIC, BUFFALO WILD WINGS, REGAL CINEMAS, GAP, COLD STONE CREAMERY, CHEESECAKE BISTRO »» WALMART (6.6 MILES) »» TARGET (6.8 MILES) NEIGHBORHOOD HIGHLIGHTS TRANSPORTATION • Several grocery centers are located within three miles of the properties, including Brookshire’s of Shreveport, Save-A-Lot, and »» US ROUTE 71 (0.5 MILE) »» INTERSTATE 220 (1.7 MILES) County Market »» SHREVEPORT DOWNTOWN AIRPORT (2.4 MILES) • Conveniently located less than two miles to Interstate 220 and »» SPORTRAN TERMINAL (3.7 MILES) US Route 71 »» SHREVEPORT REGIONAL AIRPORT (7.5 MILES) • Within eight miles of a variety of household and retail shopping, including The Louisiana Boardwalk, Walmart, and Target • Only 2.2 miles to Shreveport Downtown Airport and 7.6 miles to Shreveport Regional Airport

Berkshire Court, Kensington Square, and Devonshire Village | 12 Executive summary

ECONOMIC HIGHLIGHTS MAJOR EMPLOYERS • Third-largest city in Louisiana, with a population of 200,692 »» BARKSDALE AIR FORCE BASE (10,284 EMPLOYEES) • Ranked 13th in the US for “Cost of Doing Business” by Forbes »» CADDO PUBLIC SCHOOLS (6,815 EMPLOYEES) • Ranked 18th in the US for “Best Large Cities to Start a Business” »» STATE OF LOUISIANA (6,549 EMPLOYEES) »» UNIVERSITY HEALTH (6,200 EMPLOYEES) by WalletHub »» WILLIS-KNIGHTON HEALTH SYSTEM (6,145 EMPLOYEES) • Home to six casinos along the Red River, Shreveport is a cultural »» BOSSIER PARISH SCHOOL SYSTEM (2,926 EMPLOYEES) »» CITY OF SHREVEPORT (2,729 EMPLOYEES) and gaming center located on the Louisiana/Texas border »» WALMART (2,006 EMPLOYEES) »» CHRISTUS SCHUMPERT HEALTH SYSTEM (1,800 EMPLOYEES) »» HARRAH’S/HORSESHOE CASINOS (1,800 EMPLOYEES) ECONOMIC OVERVIEW Shreveport is the economic hub for business and tourism in northwestern HOSPITALS AND PHARMACIES Louisiana. Major industries include defense, health care, education, »» CVS (0.5 MILE) biotech, energy, advanced manufacturing, and film. Leading the local »» WILLIS-KNIGHTON BOSSIER HOSPITAL (3.6 MILES) economy is the 22,000-acre Barksdale Air Force Base, which provides »» OVERTON BROOKS VA MEDICAL CENTER (4.8 MILES) employment for more than 10,000 people. SCHOOLS Northwest Louisiana also serves as the medical hub for the state’s northern region, East Texas, and Southern Arkansas. Major hospitals »» NORTH HIGHLANDS ELEMENTARY (3.6 MILES) such as Willis-Knighton Health System and Christus Schumpert Health »» LINEAR JUNIOR HIGH SCHOOL (4.8 MILES) »» GREEN OAKS HIGH SCHOOL (5.2 MILES) System are also top employers. Additionally, Louisiana State University »» LOUISIANA TECHNICAL COLLEGE (1.4 MILES) Shreveport’s medical school is one of the largest medical schools in »» NORTHWESTERN STATE UNIVERSITY (4.4 MILES) the state. »» LOUISIANA STATE UNIVERSITY SHREVEPORT (10.2 MILES)

Shreveport has been recognized as one of the nation’s best large cities to start a business. This is due to the low land costs, multimodal transportation, access to several interstate routes, and a regional airport active in international trade, offering companies a variety of business advantages.

Home to six casinos, all accessible by riverboat, tourism is booming in Shreveport. The casinos not only bring in tourists, providing significant contributions to the local economy, but also provide a variety of employment opportunities to residents.

BARKSDALE AIR FORCE BASE LOUISIANA BOARDWALK

Berkshire Court, Kensington Square, and Devonshire Village | 13 Executive summary

MARDI GRAS PARADE INDEPENDENCE STADIUM

ATTRACTIONS AND ENTERTAINMENT EVENTS Shreveport exhibits the friendly and gracious charm of a smaller »» MARDI GRAS PARADE community, while providing the cultural amenities of a larger city. »» RED RIVER REVEL Riverboat casinos along the Red River evoke the glamour of the past, »» THE STATE FAIR OF LOUISIANA while providing modern travelers with the thrills of gambling and other »» CHAMPION LAKE PRO CLASSIC WATER-SKIING entertainment. Another source of excitement is Mardi Gras, which is »» PEACHES GALORE »» HIGHLAND JAZZ AND BLUES FESTIVAL an essential part of Shreveport’s cultural identity. Over the course of two weekends in February, the Mardi Gras parades attract as many as 400,000 visitors to the city. VENUES

Red River Revel, the largest outdoor arts festival in North Louisiana, is »» SHREVEPORT OPERA (2.6 MILES) »» SHREVEPORT METROPOLITAN BALLET (2.8 MILES) hosted in Shreveport every October and attracts more than 180,000 »» BARNWELL GARDEN AND ART CENTER (2.9 MILES) people. This eight-day festival is dedicated to providing the finest in »» ROBINSON FILM CENTER (2.9 MILES) visual and performing arts and has been named one of the “Top 20 »» SHREVEPORT MUNICIPAL AUDITORIUM (3.0 MILES) Events in the Southeast” by the Southeast Tourism Society. »» STRAND THEATRE (3.1 MILES) »» SHREVEPORT SYMPHONY ORCHESTRA (4.0 MILES) Shreveport Metropolitan Ballet provides entertainment year-round »» HIRSCH MEMORIAL COLISEUM (4.5 MILES) »» INDEPENDENCE STADIUM (4.3 MILES) enriching the community with a variety of classical and holiday- oriented dance performances. A much-anticipated holiday ritual is the company’s annual production of “The Nutcracker Suite,” which PARKS AND RECREATION includes a cast of more than 150. »» MAMIE HICKS RECREATION CENTER (1.6 MILES) »» LAKESIDE PARK & COMMUNITY CENTER (2.3 MILES) Athletic events abound in Northwest Louisiana, providing Shreveport’s »» CROSS LAKE (4.1 MILES) sports enthusiasts with a variety of options. From crowd-rousing »» CADDO LAKE (22.7 MILES) games of football and rugby to baseball and golf, there’s something in Northwest Louisiana for everyone. Matches at the 6​5,000-seat Independence Stadium bring past and present college football greats to the area for pre-bowl game events and public celebrations, including parades and player gatherings.

Berkshire Court, Kensington Square, and Devonshire Village | 14 FINANCIAL ANALYSIS Financial analysis

PROPERTY INFORMATION

Berkshire Court / Kensington Square / Devonshire Village General Partner Tra-Dor, Inc. 2120 / 2130 / 2140 North Hearne Avenue Management Tra-Dor, Inc. Shreveport, LA 71107 Projected Closing Date January 1, 2019 Caddo County Hold Period 10 Years Hold Period 10 Years

Berkshire Court Kensington Square Year Built 2002 Year Built 2003 Number of Units 58 Number of Units 40 Property Type LIHTC - Family Property Type LIHTC - Family

Placed In Service May 8, 2002 Placed In Service December 22, 2003 End of TCCP December 31, 2016 End of TCCP December 31, 2018 Final Year of LIHTC Restrictions 2031 (Extended Use: 15 Yrs) Final Year of LIHTC Restrictions 2033 (Extended Use: 15 Yrs)

Qualified Contract Eligible Yes Qualified Contract Eligible Yes Right of First Refusal No Right of First Refusal No

Devonshire Village Year Built 2002 Year Built 0 Number of Units 52 Number of Units 0 Property Type LIHTC - Family Property Type 0

Placed In Service April 19, 2002 Placed In Service January 0, 1900 End of TCCP December 31, 2016 End of TCCP January 0, 1900 Final Year of LIHTC Restrictions 2031 (Extended Use: 15 Yrs) Final Year of LIHTC Restrictions 1900 (Extended Use: Yrs)

Qualified Contract Eligible Yes Qualified Contract Eligible 0 Right of First Refusal No Unhide for Multiple Phases YIELD ANALYSIS

IRR Year 0 Cash on Cash Year 1 Cash on Cash Year 0 Cap Rate Year 1 Cap Rate 18.15% 6.32% 10.93% 7.11% 8.67% 10-Yr Leveraged IRR 12.33% 3-Yr Avg 14.41% 10-Yr Avg $294,974 NOI $359,626 NOI Cash on Cash Cash on Cash $4,150,000 Price $4,150,000 Price

Purchase Price $4,150,000 Per Unit $27,667 Per SF $36.60 Total Debt $3,113,000 Aggregate LTV 75.0% Total Acquisition Costs $4,516,130 Aggregate LTC 68.9% Cost Per Unit $30,108 Cost Per SF $39.82 Equity $1,403,130 Profit $3,529,137 Exit Cap Rate 8.00% Multiple 3.52x Cost of Sale 3.00%

Current Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Cash on Cash Return 1.26% 6.32% 10.93% 12.78% 13.27% 13.77% 14.27% 14.78% 15.29% 15.81% 16.34% 16.86% Cap Rate 5.40% 7.11% 8.67% 9.29% 9.46% 9.63% 9.80% 9.97% 10.14% 10.32% 10.49% 10.67% Cap Rate on Cost 4.96% 6.53% 7.96% 8.54% 8.69% 8.85% 9.00% 9.16% 9.32% 9.48% 9.64% 9.81% Average Loan Constant 6.63% 6.63% 6.63% 6.63% 6.63% 6.63% 6.63% 6.63% 6.63% 6.63% 6.63% 6.63% Cap Rate on Cost Arbitrage -1.67% -0.09% 1.34% 1.91% 2.06% 2.22% 2.38% 2.53% 2.69% 2.85% 3.02% 3.18% Amortizing DSCR 1.09 1.43 1.74 1.87 1.90 1.94 1.97 2.01 2.04 2.08 2.11 2.15 Internal Rate of Return 25.43% 22.44% 21.21% 20.43% 19.86% 19.41% 19.03% 18.70% 18.41% 18.15%

Cash on Cash Return Internal Rate of Return 18.00% 30.00%

16.00% 25.00% 14.00%

12.00% 20.00%

10.00% 15.00% 8.00%

6.00% 10.00%

4.00% 5.00% 2.00%

0.00% 0.00% YR 1 YR 2 YR 3 YR 4 YR 5 YR 6 YR 7 YR 8 YR 9 YR 10 YR 1 YR 2 YR 3 YR 4 YR 5 YR 6 YR 7 YR 8 YR 9 YR 10

Berkshire Court, Kensington Square, and Devonshire Village | 16 Financial analysis

SOURCES AND USES OF FUNDS

Uses of Funds - Close of Escrow Sources of Funds - Close of Escrow $ Per Unit % $ Per Unit % Purchase Price 4,150,000 27,667 91.89% First Mortgage 3,113,000 20,753 68.93% Second Mortgage $0 0 0.00% Due Diligence & Closing Costs 35,000 233 0.77% Third Mortgage $0 0 0.00% Capital Improvements 300,000 2,000 6.64% Fourth Mortgage $0 0 0.00% Financing Costs 31,130 208 0.69% Fifth Mortgage $0 0 0.00% Total Debt 3,113,000 20,753 68.93%

Total Equity 1,403,130 9,354 31.07% Total Uses of Funds $4,516,130 $30,108 100.00% Total Sources of Funds $4,516,130 $30,108 100.00%

LOAN ASSUMPTIONS

First Mortgage - New Financing Original Loan Amount $3,113,000 Loan to Value 75.0% Loan Amount at Start of Analysis $3,113,000 Loan to Cost 68.9% Proposed or Existing Proposed Term 10.0 Years Origination Date January 1, 2019 Maturity Date December 1, 2028 Permanent Interest Rate 5.25% Amortizing Annual Debt Service $206,281 Interest Rate Method 30/360 Amortizing DSCR (Year 0) 1.43 Interest-Only Period (In Months) 0 Amortizing DSCR (Year 1) 1.74 Amortization (In Months) 360 Loan Constant 6.63% Loan Origination Fee 1.00%

Notes Analysis reflects new financing.

Berkshire Court, Kensington Square, and Devonshire Village | 17 Financial analysis

PROPERTY UNIT MIX

Immediate 2018 Max # of Current Year 0 Year 1 Year 1 Utility Net Unit Type Phase AMI % SF Rent Allowable Units Asking Rent Rents Rent Growth Rents Allowance Max Rent Increase Rent 1x1 Berkshire 60 24 600 470 50 520 12 532 705 87 618 2x1 Berkshire 60 24 750 560 50 610 14 624 847 104 743 4x2 Berkshire 60 10 1,100 705 50 755 17 772 1,092 138 954 1x1 Kensington 60 14 600 470 50 520 12 532 705 87 618 2x1 Kensington 60 20 750 560 50 610 14 624 847 104 743 4x2 Kensington 60 6 1,100 705 50 755 17 772 1,092 138 954 1x1 Devonshire 60 16 600 470 50 520 12 532 705 87 618 2x1 Devonshire 60 24 750 560 50 610 14 624 847 104 743 3x2 Devonshire 60 4 900 635 35 670 15 685 978 121 857 4x2 Devonshire 60 8 1,100 705 50 755 17 772 1,092 138 954 Total 150 113,400 $82,920 $7,440 $90,360 $2,033 $92,393 $125,786 $15,566 $110,220 Average 756 $553 $50 $602 $14 $616 $839 $104 $735

Notes • 23% of the units are occupied by tenants utilizing Section 8 Vouchers. • Current asking rents above reflect most recent move-in on rent roll dated October 7, 2018. Unit Mix • Immediate rent increase above is an estimate based on LIHTC and unrestricted rents at comparable properties in the submarket. • Historically, the 20% AMI income-only restriction has been covered by Section 8 voucher tenants. 4x2 16% Affordability Restrictions 3x2 1x1 • Berkshire Court - LIHTC LURA: Restricts 100% of units at 60% AMI. 25% of units are income-only restricted at 20% AMI. Final year of restrictions is 3% 2031. 36% • Kensington Square - LIHTC LURA: Restricts 100% of units at 60% AMI. Final year of restrictions is 2033. • Devonshire Village - LIHTC LURA: Restricts 100% of units at 60% AMI. 25% of units are income-only restricted at 20% AMI. 25% of units (13 units) for special needs households. Final year of restrictions is 2031.

2x1 45%

Asking Rents vs. Net Max Rents $1,200

$1,000 $954 $857 $800 $743 $705 $618 $635 $600 $560 $470 Asking Rent $400 Net Max Rent

$200

$0 60 60 60 60 600 750 900 1100 1x1 2x1 3x2 4x2

Berkshire Court, Kensington Square, and Devonshire Village | 18 Financial analysis

OPERATING HISTORY AND PRO FORMA

September 2018 2017 Year 0 Year 1 Trailing 12 Income Per Unit Per Unit Per Unit Per Unit Market Rents 885,296 5,902 995,040 6,634 1,084,320 7,229 1,108,717 7,391 (1) Loss to Lease 0.00% 0 0 6.49% 64,608 431 8.23% 89,280 595 3.00% 33,262 222 (2) Gross Potential Rents $885,296 5,902 $930,432 6,203 $995,040 6,634 $1,075,456 7,170 (3) Vacancy (-) 0.00% 0 0.00% 0 6.00% 59,702 5.00% 53,773 (4) Bad Debt (-) 2.52% 22,334 4.34% 40,423 2.00% 19,901 2.00% 21,509 Concessions (-) 0.00% 0 0.00% 0 0.00% 0 0.00% 0 Total Economic Loss 2.52% $22,334 149 4.34% $40,423 269 8.00% $79,603 531 7.00% $75,282 502 Net Rental Income $862,962 5,753 $890,009 5,933 $915,437 6,103 $1,000,174 6,668 Damages/Cleaning/Forf. Dep. (654) (882) 0 0 Laundry & Vending 1,832 1,674 1,674 1,711 Termin./MTM/Late/NSF 15,055 14,795 14,795 15,128 Misc. Income (App, Pet, Other) 8,089 7,403 7,403 7,569 Total Other Income $24,322 162 $22,989 153 $23,871 159 $24,408 163 Effective Gross Income $887,284 5,915 $912,999 6,087 $939,308 6,262 $1,024,582 6,831

Operating Expenses Real Estate & Other Taxes Real Estate Taxes 58,560 58,560 59,940 61,589 (5) Total Real Estate Taxes $58,560 390 $58,560 390 $59,940 400 $61,589 411 Insurance Property 32,251 44,962 44,962 46,198 Other Insurance 3,895 3,810 3,810 3,915 Total Insurance $36,146 241 $48,772 325 $48,772 325 $50,113 334 Utilities Electricity 14,863 16,946 16,946 17,412 Water 32,888 30,918 30,918 31,768 Sewer 79,778 93,892 93,892 96,474 Garbage Collection 15,409 15,084 15,084 15,499 Total Utilities $142,938 953 $156,840 1,046 $156,840 1,046 $161,154 1,074 Total Fixed Expenses $237,644 1,584 $264,173 1,761 $265,553 1,770 $272,855 1,819 Contract Services Landscaping 20,433 13,029 13,029 13,387 Pest Control 20,174 19,031 19,031 19,554 Total Contract Services $40,607 271 $32,060 214 $32,060 214 $32,941 220 Repairs & Maintenance General R&M 72,321 57,799 30,000 30,825 HVAC & Plumbing 23,498 33,470 13,000 13,358 Turnover 6,105 12,041 5,000 5,138 Total Repairs & Maintenance $101,924 679 $103,310 689 $48,000 320 $49,320 329 (6) Marketing & Promotion Advertising 4,566 4,897 4,897 5,031 Total Marketing & Promotion $4,566 30 $4,897 33 $4,897 33 $5,031 34 On-Site Payroll Manager and Leasing 52,171 42,021 59,280 60,910 Maintenance Staff 20,469 31,331 62,920 64,650 Subtotal On-Site Payroll $72,640 484 $73,352 489 $122,200 815 $125,561 837 Payroll Taxes & Benefits 21.59% 15,686 22.84% 16,757 22.84% 27,916 22.84% 28,683 Total On-Site Payroll $88,326 589 $90,108 601 $150,116 1,001 $154,244 1,028 (7) Professional Mgmt. Fee 11.79% 104,582 697 11.57% 105,600 704 7.00% $65,752 438 7.00% $71,721 478 (8) Administrative Expenses Audit/Accounting Fees 10,895 10,955 0 0 (9) Legal & Professional Fees 2,450 3,354 3,354 3,446 Supplies/Copier/Computer 6,519 4,616 4,616 4,743 Phone/Internet/Answering Service 4,865 6,844 6,844 7,032 Miscellaneous 17,721 17,394 17,394 17,873 Total Administrative $42,449 283 $43,163 288 $32,208 215 $33,094 221 Total Variable Expenses $382,454 2,550 $379,137 2,528 $333,031 2,220 $346,351 2,309 LIHTC Monitoring Fee 750 750 750 750 Replacement & Reserves 45,000 300 45,000 300 45,000 300 45,000 300 Total Expenses $665,848 4,439 $689,060 4,594 $644,334 4,296 $664,956 4,433 Net Operating Income $221,435 1,476 $223,939 1,493 $294,974 1,966 $359,626 2,398 Expenses As A % of EGI 75.04% 75.47% 68.60% 64.90% Cap Rate (Price $4,150,000) 5.34% 5.40% 7.11% 8.67%

Berkshire Court, Kensington Square, and Devonshire Village | 19 Financial analysis

INCOME AND EXPENSE NOTES

(1) Market Rent Growth: The property is located in the Shreveport-Bossier City, LA MSA. All units are currently renting for below the maximum allowable LIHTC rents. Analysis assumes an immediate rent increase based on the internal rent comparability study. Stabilized rent growth is based on REIS forecasted growth in the submarket.

(2) Loss-to-Lease: Analysis assumes all new leases and renewals will be rented at the Year 0 rents over the next 12 months and stabilize in Year 2. (3) Gross Potential Rent: Year 0 reflects gross potential rent from the rent roll dated October 7, 2018 annualized. (4) Vacancy: Historical vacancy is not broken out in the operating statements provided. As of October 7, 2018, the property was 94.7% occupied. Underwriting assumes Year 0 occupancy in line with most recent rent roll. Subsequently, stabilized occupancy is based on REIS forecasted occupancy in Shreveport, LA. (5) Real Estate Taxes: See Real Estate Tax Analysis on the following page. (6) Payroll: See Payroll Analysis on the following page. (7) Repairs & Maintenance: Reduction based on CBRE estimate of market underwriting. (8) Management Fee: Reduction based on CBRE estimate of market underwriting. (9) Audit: Excludes the audit expense which will not be required after a sale.

Berkshire Court, Kensington Square, and Devonshire Village | 20 Financial analysis

PROPERTY TAX AND PAYROLL ANALYSIS

Real Estate Tax Analysis Berkshire - 2017 Kensington - 2017 Devonshire - 2017 Year 0 - Combined Land Value $243,940 $99,530 $243,940 $603,564 Improvement Value $806,667 $510,033 $668,140 $2,039,423 Net Value $1,050,607 $609,563 $912,080 $2,642,987 Assessment Ratio - Land 10% 10% 10% 10% Assessment Ratio - Improvements 15% 15% 15% 15% Taxable Value $145,394 $86,458 $124,615 $366,270 Millage Rate 163.651 163.651 163.651 163.651 Total Real Estate Taxes $23,794 $14,149 $20,393 $59,940

Notes Parcel: 181423-0-135, 181423-0-137, 181423-0-134 Year 0 reflects the 2017 assessed values increased by 2.75%. According to the assessor's office, a sale could trigger a reassessment if there is a significant difference between the sale price and assessed value. Underwriting assumes the property is currently assessed to approximately 60% of the fair market value, therefore Year 0 does not reflect a reassessment.

According to the county assessor's office, the property was last reassessed in 2016. The next reassessment will most likely be in 2020.

Payroll Analysis Administrative Staffing # Hourly Wage Hours / Week Annual $ On-Site Community Manager 1 $18.00 40 37,440 Assistant Manager/Administrative 1 $14.00 30 21,840 Total Office & Leasing 2.0 $59,280

Maintenance Staffing Maintenance/Repair Supervisor 1 $18.00 40 37,440 Maintenance Assistant 1 $14.00 35 25,480 Total Maintenance 2.0 $62,920

Payroll Analysis Summary Total Wages 4.0 $122,200 Total Payroll & Benefits 22.84% $27,916 Staff Apartments $0 Total Property Payroll $150,116 Per Unit $1,001

Notes Analysis assumes an incoming buyer can operate the properties using the payroll schedule shown above.

Berkshire Court, Kensington Square, and Devonshire Village | 21 Financial analysis

GROWTH RATE AND OCCUPANCY ASSUMPTIONS

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

Income Growth Rental Income Growth 11.42% 2.25% 2.25% 2.25% 2.25% 2.25% 2.25% 2.25% 2.25% 2.25% Other Income Growth 2.25% 2.25% 2.25% 2.25% 2.25% 2.25% 2.25% 2.25% 2.25% 2.25% Economic Loss Vacancy (-) * 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% Bad Debt (-) * 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% Concessions (-) * 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Total Economic Loss 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% Expense Growth Real Estate & Other Taxes 2.75% 2.75% 2.75% 2.75% 2.75% 2.75% 2.75% 2.75% 2.75% 2.75% Insurance 2.75% 2.75% 2.75% 2.75% 2.75% 2.75% 2.75% 2.75% 2.75% 2.75% Utilities 2.75% 2.75% 2.75% 2.75% 2.75% 2.75% 2.75% 2.75% 2.75% 2.75% Contract Services 2.75% 2.75% 2.75% 2.75% 2.75% 2.75% 2.75% 2.75% 2.75% 2.75% Repairs & Maintenance 2.75% 2.75% 2.75% 2.75% 2.75% 2.75% 2.75% 2.75% 2.75% 2.75% Marketing & Promotion 2.75% 2.75% 2.75% 2.75% 2.75% 2.75% 2.75% 2.75% 2.75% 2.75% On-Site Payroll 2.75% 2.75% 2.75% 2.75% 2.75% 2.75% 2.75% 2.75% 2.75% 2.75% Professional Mgmt. Fee ** 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% Administrative 2.75% 2.75% 2.75% 2.75% 2.75% 2.75% 2.75% 2.75% 2.75% 2.75% LIHTC Monitoring Fee 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Replacement & Reserves 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

Notes: * Calculated as a Percentage of Gross Potential Rent | **Calculated as a Percentage of Effective Gross Income

Berkshire Court, Kensington Square, and Devonshire Village | 22 Financial analysis

HISTORICAL RENT AND INCOME LIMITS

Area Median Income Effective Income Limit Non-HERA Limit 64,000

62,000

60,000

58,000

56,000

54,000

52,000 2010 2011 2012 2013 2014 2015 2016 2017 2018

Notes • The property is located in the Shreveport-Bossier City, LA HUD Metro FMR Area • The historical Consumer Price Index data below reflects the South Urban and is obtained from the US Bureau of Labor Statistics

2010 2011 2012 2013 2014 2015 2016 2017 2018 Percent Below Effective Peak Area Median Income 0.00% 0.00% 0.00% 0.00% 3.65% 0.34% 9.14% 0.00% HERA Special Bonus 0.00% 0.00% 0.00% 0.00% 0.00% 3.65% 0.34% 9.14% 0.00% 4-Person 50% Income Limit Non-HERA 26,300 27,150 27,550 27,750 29,100 28,800 29,750 28,300 31,350 % Growth 3.23% 1.47% 0.73% 4.86% -1.03% 3.30% -4.87% 10.78% Effective Limit 26,300 27,150 27,550 27,750 29,850 29,850 29,850 29,850 31,350 % Growth 3.23% 1.47% 0.73% 7.57% 0.00% 0.00% 0.00% 5.03%

3-Bedroom Rent at 60% AMI Non-HERA 820 847 860 866 908 899 928 883 978 % Growth 3.29% 1.53% 0.70% 4.85% -0.99% 3.23% -4.85% 10.76% Effective Limit 821 847 860 866 931 931 931 931 978 % Growth 3.17% 1.53% 0.70% 7.51% 0.00% 0.00% 0.00% 5.05%

HISTORICAL AMI, NON-HERA RENT, CPI, AND FMR

Year Area Median Income Non-Hera (3BR @ 60%) Consumer Price Index 2BR Fair Market Rent 2008 49,600 774 209 634 2009 52,300 5.44% 816 5.43% 209 0.00% 677 6.78% 2010 52,600 0.57% 820 0.49% 208 -0.40% 719 6.20% 2011 54,300 3.23% 847 3.29% 211 1.68% 742 3.20% 2012 55,100 1.47% 860 1.53% 219 3.44% 715 -3.64% 2013 55,500 0.73% 866 0.70% 223 2.11% 785 9.79% 2014 59,700 7.57% 908 4.85% 227 1.56% 757 -3.57% 2015 57,600 -3.52% 899 -0.99% 231 1.69% 842 11.23% 2016 59,500 3.30% 928 3.23% 230 -0.18% 819 -2.73% 2017 54,700 -8.07% 883 -4.85% 233 1.11% 878 7.20% 2018 62,700 14.63% 978 10.76% 237 2.05% 820 -6.61%

3-Yr Avg 3.29% 3.05% 0.99% -0.71% 5-Yr Avg 2.78% 2.60% 1.25% 1.11% 10-Yr Avg 2.54% 2.44% 1.31% 2.79%

Berkshire Court, Kensington Square, and Devonshire Village | 23 Financial analysis

10-YEAR CASH FLOW

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Period Ending Dec-2019 Dec-2020 Dec-2021 Dec-2022 Dec-2023 Dec-2024 Dec-2025 Dec-2026 Dec-2027 Dec-2028

Unleveraged Acquisition Costs Purchase Price 4,150,000 Due Diligence & Closing Costs 35,000 Capital Improvements 300,000 Total Unlev. Acq. Costs $4,485,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Income Market Rents 1,084,320 1,108,717 1,133,663 1,159,171 1,185,252 1,211,920 1,239,188 1,267,070 1,295,579 1,324,730 1,354,536 Loss-to-Lease (%) 8.23% 3.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% Gross Potential Rent $995,040 $1,075,456 $1,122,327 $1,147,579 $1,173,400 $1,199,801 $1,226,797 $1,254,400 $1,282,624 $1,311,483 $1,340,991 Vacancy (-) 59,702 53,773 56,116 57,379 58,670 59,990 61,340 62,720 64,131 65,574 67,050 Bad Debt (-) 19,901 21,509 22,447 22,952 23,468 23,996 24,536 25,088 25,652 26,230 26,820 Concessions (-) 0 0 0 0 0 0 0 0 0 0 0 Total Economic Loss $79,603 $75,282 $78,563 $80,331 $82,138 $83,986 $85,876 $87,808 $89,784 $91,804 $93,869 % Economic Loss 8.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% Total Other Income $23,871 $24,408 $24,958 $25,519 $26,093 $26,680 $27,281 $27,895 $28,522 $29,164 $29,820

Effective Gross Income $939,308 $1,024,582 $1,068,721 $1,092,768 $1,117,355 $1,142,495 $1,168,202 $1,194,486 $1,221,362 $1,248,843 $1,276,942 % Change 2.88% 9.08% 4.31% 2.25% 2.25% 2.25% 2.25% 2.25% 2.25% 2.25% 2.25%

Operating Expenses Real Estate & Other Taxes 59,940 61,589 63,282 65,023 66,811 68,648 70,536 72,476 74,469 76,517 78,621 Insurance 48,772 50,113 51,491 52,907 54,362 55,857 57,393 58,971 60,593 62,259 63,972 Utilities 156,840 161,154 165,585 170,139 174,818 179,625 184,565 189,640 194,855 200,214 205,720 Contract Services 32,060 32,941 33,847 34,778 35,734 36,717 37,727 38,764 39,830 40,926 42,051 Repairs & Maintenance 48,000 49,320 50,676 52,070 53,502 54,973 56,485 58,038 59,634 61,274 62,959 Marketing & Promotion 4,897 5,031 5,170 5,312 5,458 5,608 5,762 5,921 6,083 6,251 6,422 On-Site Payroll 150,116 154,244 158,485 162,844 167,322 171,923 176,651 181,509 186,501 191,629 196,899 Professional Mgmt. Fee 65,752 71,721 74,811 76,494 78,215 79,975 81,774 83,614 85,495 87,419 89,386 Administrative 32,208 33,094 34,004 34,939 35,900 36,887 37,901 38,943 40,014 41,115 42,245 LIHTC Monitoring Fee 750 750 750 750 750 750 750 750 750 750 750 Replacement & Reserves 45,000 45,000 45,000 45,000 45,000 45,000 45,000 45,000 45,000 45,000 45,000 Total Expenses $644,334 $664,956 $683,102 $700,255 $717,871 $735,963 $754,544 $773,627 $793,226 $813,354 $834,026

Net Operating Income $294,974 $359,626 $385,620 $392,513 $399,484 $406,532 $413,657 $420,859 $428,136 $435,489 $442,916 % Change 31.72% 21.92% 7.23% 1.79% 1.78% 1.76% 1.75% 1.74% 1.73% 1.72% 1.71%

Gross Sale Proceeds 0 0 0 0 0 0 0 0 0 5,630,203 Less Existing Debt Balance 0 0 0 0 0 0 0 0 0 2,551,050 Less Cost of Sale 0 0 0 0 0 0 0 0 0 168,906 Net Sale Proceeds $0 $0 $0 $0 $0 $0 $0 $0 $0 $2,910,247

First Mortgage - New Financing Principal Payments 43,895 46,256 48,743 51,365 54,127 57,039 60,106 63,339 66,745 70,335 Interest Payments 162,386 160,026 157,538 154,916 152,154 149,243 146,175 142,942 139,536 135,946 Mortgage Repaid 0 0 0 0 0 0 0 0 0 0 Mortgage Funding Proceeds (3,113,000) 0 0 0 0 0 0 0 0 0 0 Loan Fees 31,130 0 0 0 0 0 0 0 0 0 0 Total DS - First Mortgage ($3,081,870) $206,281 $206,281 $206,281 $206,281 $206,281 $206,281 $206,281 $206,281 $206,281 $206,281 Net Cash Flow $153,345 $179,339 $186,232 $193,203 $200,251 $207,376 $214,578 $221,855 $229,208 $236,635

Total Lev. Cash Flow ($1,403,130) $153,345 $179,339 $186,232 $193,203 $200,251 $207,376 $214,578 $221,855 $229,208 $3,146,882 Debt Service Coverage Ratio 1.74 1.87 1.90 1.94 1.97 2.01 2.04 2.08 2.11 2.15

Berkshire Court, Kensington Square, and Devonshire Village | 24 RENT COMPARABLES Rent Comparables

Devonshire / Berkshire / Kensington Summary of Rent Comparables Shreveport, LA Year Built: 2002 / 2002 / 2003 Units: 150

One Bedroom / One Bath AMI Year Low Market High Market Average Average Net Rent After Distance to Property Average SF Vacancy Restrictions Built Rent Rent Market Rent Rent PSF Concessions Subject (Miles) United Jewelers 2000 634 $1,020 $1,020 $1,020 $1.61 $1,020 11% 3.1 Fairmont 60% Unknown 544 $660 $660 $660 $1.21 $660 14% 3.0 Lee Hardware 60% 2000 748 $627 $627 $627 $0.84 $627 15% 3.1 Jefferson 60% 1922 477 $585 $585 $585 $1.23 $585 7% 3.1 Bayou Oaks 1969 600 $581 $581 $581 $0.97 $581 5% 1.4 Vieux Carre 2004 626 $539 $539 $539 $0.86 $539 7% 5.9 Yorkshire 60% 2000 600 $535 $535 $535 $0.89 $535 0% 0.2 Windsor Village 60% 2000 600 $535 $535 $535 $0.89 $535 2% 0.2 Devonshire Village 60% 2002 600 $470 $470 $470 $0.78 $470 6% Berkshire Court 60% 2002 600 $470 $470 $470 $0.78 $470 7% Kensington Square 60% 2003 600 $470 $470 $470 $0.78 $470 3% Isabella II Estates 2007 600 $430 $430 $430 $0.72 $430 6% 6.7 Villa Norte 1972 552 $399 $449 $424 $0.77 $424 19% 0.7 Averages: 598 $563 $567 $565 $0.95 $565 8%

Two Bedroom / One Bath AMI Year Low Market High Market Average Average Net Rent After Distance to Property Average SF Vacancy Restrictions Built Rent Rent Market Rent Rent PSF Concessions Subject (Miles) United Jewelers 2x2 2000 1035 $1,074 $1,074 $1,074 $1.04 $1,074 11% 3.1 Lee Hardware 60% 2000 981 $751 $751 $751 $0.77 $751 15% 3.1 Fairmont 2x2 60% Unknown 805 $750 $750 $750 $0.93 $750 14% 3.0 Bayou Oaks 1969 800 $646 $646 $646 $0.81 $646 5% 1.4 Yorkshire 60% 2000 750 $644 $644 $644 $0.86 $644 0% 0.2 Windsor Village 60% 2000 750 $644 $644 $644 $0.86 $644 2% 0.2 Vieux Carre 2x2 2004 821 $608 $608 $608 $0.74 $608 7% 5.9 Jefferson 60% 1922 734 $600 $600 $600 $0.82 $600 7% 3.1 Devonshire Village 60% 2002 750 $560 $560 $560 $0.75 $560 6% Berkshire Court 60% 2002 750 $560 $560 $560 $0.75 $560 7% Kensington Square 60% 2003 750 $560 $560 $560 $0.75 $560 3% Villa Norte 2x1.5 1972 880 $499 $525 $512 $0.58 $512 19% 0.7 Isabella II Estates 2007 900 $506 $506 $506 $0.56 $506 6% 6.7 Averages: 824 $646 $648 $647 $0.78 $647 8%

Three Bedroom / Two Bath AMI Year Low Market High Market Average Average Net Rent After Distance to Property Average SF Vacancy Restrictions Built Rent Rent Market Rent Rent PSF Concessions Subject (Miles) Bayou Oaks 1969 1000 $776 $776 $776 $0.78 $776 5% 1.4 Vieux Carre 2004 1011 $700 $700 $700 $0.69 $700 7% 5.9 Devonshire Village 60% 2002 900 $635 $635 $635 $0.71 $635 6% Isabella II Estates 2007 1100 $610 $610 $610 $0.55 $610 6% 6.7 Villa Norte 3x1.5 1972 910 $599 $599 $599 $0.66 $599 19% 0.7 Averages: 984 $664 $664 $664 $0.68 $664 9%

Four Bedroom / Two Bath AMI Year Low Market High Market Average Average Net Rent After Distance to Property Average SF Vacancy Restrictions Built Rent Rent Market Rent Rent PSF Concessions Subject (Miles) Yorkshire 60% 2000 1100 $800 $800 $800 $0.73 $800 0% 0.2 Windsor Village 60% 2000 1100 $800 $800 $800 $0.73 $800 2% 0.2 Devonshire Village 60% 2002 1100 $705 $705 $705 $0.64 $705 6% Berkshire Court 60% 2002 1100 $705 $705 $705 $0.64 $705 7% Kensington Square 60% 2003 1100 $705 $705 $705 $0.64 $705 3% Isabella II Estates 2007 1200 $618 $618 $618 $0.52 $618 6% 6.7 Averages: 1117 $722 $722 $722 $0.65 $722 4%

Berkshire Court, Kensington Square, and Devonshire Village | 26 Rent Comparables

Devonshire Village Subject Property

Insert Picture Property Details 2130 North Hearne Avenue Shreveport, LA 71107 Units: 150 Height 3.25" LIHTC - Family Width 4.33" Units: 52 Management: N/A Black Border Occupancy: 94% Year Built: 2002 Left: Left of Column A Top: Top of "Property Details" Tenant Charges Water/Sewer Included/Landlord Pays Garbage Included/Landlord Pays Electricity Tenant Pays Electric Heat Tenant Pays Other Charges N/A Unit Type Square Feet Asking Rent Rent/Square Foot Amenity Package 1x1 (60% AMI) 600 $470 $0.78 Common Area 2x1 (60% AMI) 750 $560 $0.75 Leasing office | Clubhouse | On-site laundry 3x2 (60% AMI) 900 $635 $0.71 facility | Barbecue and picnic area | Playground 4x2 (60% AMI) 1100 $705 $0.64

Unit Self-cleaning oven | Refrigerator | Air conditioning

Concessions None Comments None

Berkshire Court Subject Property

Insert Picture Property Details 2120 North Hearne Avenue Shreveport, LA 71107 Height 3.25" LIHTC - Family Width 4.33" Units: 58 Management: N/A Black Border Occupancy: 93% Ownership: N/A Year Built: 2002 Distance from Subject: Miles Left: Left of Column A Top: Top of "Property Details" Tenant Charges Water/Sewer Included/Landlord Pays Garbage Included/Landlord Pays Electricity Tenant Pays Electric Heat Tenant Pays Other Charges N/A Unit Type Square Feet Asking Rent Rent/Square Foot Amenity Package 1x1 (60% AMI) 600 $470 $0.78 Common Area 2x1 (60% AMI) 750 $560 $0.75 Leasing office | Clubhouse | On-site laundry 4x2 (60% AMI) 1100 $705 $0.64 facility | Barbecue and picnic area | Playground

Unit Self-cleaning oven | Refrigerator | Air conditioning

Concessions None Comments None

Berkshire Court, Kensington Square, and Devonshire Village | 27 Rent Comparables

Kensington Square Subject Property

Insert Picture Property Details 2140 North Hearne Avenue Shreveport, LA 71107 Units: 150 Height 3.25" LIHTC - Family Width 4.33" Units: 40 Management: N/A Black Border Occupancy: 98% Ownership: N/A Year Built: 2003 Distance from Subject: Miles Left: Left of Column A Top: Top of "Property Details" Tenant Charges Water/Sewer Included/Landlord Pays Garbage Included/Landlord Pays Electricity Tenant Pays Electric Heat Tenant Pays Other Charges N/A Unit Type Square Feet Asking Rent Rent/Square Foot Amenity Package 1x1 (60% AMI) 600 $470 $0.78 Common Area 2x1 (60% AMI) 750 $560 $0.75 Leasing office | Clubhouse | On-site laundry 4x2 (60% AMI) 1100 $705 $0.64 facility | Barbecue and picnic area | Playground

Unit Self-cleaning oven | Refrigerator | Air conditioning

Concessions None Comments None

Yorkshire Rent Comparable

Insert Picture Property Details 2020 North Hearne Avenue Shreveport, LA 77107 Height 3.25" LIHTC - Family Width 4.33" Units: 84 Management: N/A Black Border Occupancy: 100% Ownership: N/A Year Built: 2000 Distance from Subject: 0.2 Miles Left: Left of Column A Top: Top of "Property Details" Tenant Charges Water/Sewer Included/Landlord Pays Garbage Tenant Pays Electricity Tenant Pays Electric Heat Tenant Pays Other Charges N/A Unit Type Square Feet Asking Rent Rent/Square Foot Amenity Package 1x1 (60% AMI) 600 $535 $0.89 Common Area 2x1 (60% AMI) 750 $644 $0.86 Leasing Office | Clubhouse | Playground | 4x2 (60% AMI) 1100 $800 $0.73 Laundry Facilities | BBQ/Picnic Area

Unit Balcony or Patio | Air Conditioning | Self-Clean Oven | Refrigerator

Concessions None Comments None

Berkshire Court, Kensington Square, and Devonshire Village | 28 Rent Comparables

Windsor Village Rent Comparable

Insert Picture Property Details 1920 North Hearne Avenue Shreveport, LA 71107 Units: 150 Height 3.25" LIHTC - Family Width 4.33" Units: 47 Management: N/A Black Border Occupancy: 98% Ownership: N/A Year Built: 2000 Distance from Subject: 0.2 Miles Left: Left of Column A Top: Top of "Property Details" Tenant Charges Water/Sewer Included/Landlord Pays Garbage Tenant Pays Electricity Tenant Pays Electric Heat Tenant Pays Other Charges N/A Unit Type Square Feet Asking Rent Rent/Square Foot Amenity Package 1x1 (60% AMI) 600 $535 $0.89 Common Area 2x1 (60% AMI) 750 $644 $0.86 Leasing Office | Clubhouse | Playground | Laundry 4x2 (60% AMI) 1100 $800 $0.73 Facilities

Unit Air Conditioning | Self-Clean Oven | Refrigerator

Concessions None Comments None

Fairmont Rent Comparable

Insert Picture Property Details 726 Cotton Street Shreveport, LA 71101 Height 3.25" LIHTC - Family Width 4.33" Units: 254 Management: NMI Property Management LLC Black Border Occupancy: 86% Ownership: NMI Property Management LLC Year Built: Unknown Distance from Subject: 3 Miles Left: Left of Column A Top: Top of "Property Details" Tenant Charges Water/Sewer Included/Landlord Pays Garbage Included/Landlord Pays Electricity Included/Landlord Pays Electric Heat Tenant Pays Other Charges Pet Fee $10 Unit Type Square Feet Asking Rent Rent/Square Foot Amenity Package Studio (60% AMI) 429-543 $600 $1.10-1.40 Common Area 1x1 (60% AMI) 503-584 $660 $1.13-1.31 Leasing Office | Pool | Fitness Center | Pets Allowed | 2x2 (60% AMI) 752-858 $750 $0.87-1.00 Laundry Facilities

Unit Hardwood Floors | Self-Clean Oven | Microwave | Dishwasher | Garbage Disposal | Refrigerator

Concessions None Comments None

Berkshire Court, Kensington Square, and Devonshire Village | 29 Rent Comparables

Jefferson Rent Comparable

Insert Picture Property Details 907 Louisiana Avenue Shreveport, LA 71101 Units: 150 Height 3.25" LIHTC - Family Width 4.33" Units: 70 Management: NMI Property Management LLC Black Border Occupancy: 93% Ownership: NMI Property Management LLC Year Built: 1922 Distance from Subject: 3.1 Miles Left: Left of Column A Top: Top of "Property Details" Tenant Charges Water/Sewer Included/Landlord Pays Garbage Included/Landlord Pays Electricity Included/Landlord Pays Gas Heat Included/Landlord Pays Other Charges N/A Unit Type Square Feet Asking Rent Rent/Square Foot Amenity Package Studio (60% AMI) 280-311 $500 $1.61-1.79 Common Area 1x1 (60% AMI) 424-529 $585 $1.11-1.38 Leasing Office | Pool | Fitness Center | Pets 2x1 (60% AMI) 700-767 $600 $0.78-0.86 Allowed | Laundry Facilities

Unit Hardwood Floors | Self-Clean Oven | Microwave | Dishwasher | Garbage Disposal | Refrigerator

Concessions None Comments None

Villa Norte Rent Comparable

Insert Picture Property Details 1620 Fullerton Street Shreveport, LA 71107 Height 3.25" Market Rate Width 4.33" Units: 184 Management: Platinum Black Border Occupancy: 81% Ownership: National Corporation for Housing Partnership Year Built: 1972 Distance from Subject: 0.7 Miles Left: Left of Column A Top: Top of "Property Details" Tenant Charges Water/Sewer Included/Landlord Pays Garbage Included/Landlord Pays Electricity Tenant Pays Electric Heat Tenant Pays Other Charges N/A Unit Type Square Feet Asking Rent Rent/Square Foot Amenity Package 1x1 462-642 $399-449 $0.70-0.86 Common Area 2x1.5 850-910 $499-525 $0.58-0.59 Leasing Office | Pool | Playground | Laundry 3x1.5 910 $599 $0.66 Facilities

Unit Balcony or Patio | Hardwood Floors | Walk-In Closet | Self-Clean Oven | Microwave | Dishwasher | Garbage Disposal | Refrigerator

Concessions None Comments None

Berkshire Court, Kensington Square, and Devonshire Village | 30 Rent Comparables

Lee Hardware Rent Comparable

Insert Picture Property Details 719 Edwards Street Shreveport, LA 71101 Units: 150 Height 3.25" LIHTC - Family Width 4.33" Units: 55 Management: HRI - Lee Hardware Black Border Occupancy: 85% Ownership: Berkadia Real Estate Advisors Year Built: 2000 Distance from Subject: 3.1 Miles Left: Left of Column A Top: Top of "Property Details" Tenant Charges Water/Sewer Included/Landlord Pays Garbage Included/Landlord Pays Electricity Tenant Pays Electric Heat Tenant Pays Other Charges Garage $50, Carport $40, Pet Fee $15 Unit Type Square Feet Asking Rent Rent/Square Foot Amenity Package 1x1 (60% AMI) 721-775 $627 $0.81-0.87 Common Area 2x1 (60% AMI) 981 $751 $0.77 Leasing Office | Clubhouse | Pool | Fitness Center | Pets Allowed | Laundry Facilities | BBQ/Picnic Area

Unit Hardwood Floors | Washer/Dryer In Unit | Self- Clean Oven | Microwave | Dishwasher | Garbage Disposal | Refrigerator

Concessions None Comments None

United Jewelers Rent Comparable

Insert Picture Property Details 301 Crockett Street Shreveport, LA 71101 Height 3.25" Market Rate Width 4.33" Units: 54 Management: HRI Properties Black Border Occupancy: 89% Ownership: HRI Properties Year Built: 2000 Distance from Subject: 3.1 Miles Left: Left of Column A Top: Top of "Property Details" Tenant Charges Water/Sewer Included/Landlord Pays Garbage Included/Landlord Pays Electricity Tenant Pays Electric Heat Tenant Pays Other Charges Garage $50, Carport $40, Pet Fee $15 Unit Type Square Feet Asking Rent Rent/Square Foot Amenity Package 1x1 538-730 $1020 $1.40-1.90 Common Area 2x2 991-1079 $1074 $1.00-1.08 Leasing Office | Clubhouse | Pool | Pets Allowed | BBQ/Picnic Area

Unit Washer/Dryer In Unit | Self-Clean Oven | Microwave | Dishwasher | Garbage Disposal | Refrigerator

Concessions None Comments None

Berkshire Court, Kensington Square, and Devonshire Village | 31 Rent Comparables

Bayou Oaks Rent Comparable

Insert Picture Property Details 2100 Grimmett Drive Shreveport, LA 71107 Units: 150 Height 3.25" Market Rate Width 4.33" Units: 150 Management: Walker Holder Black Border Occupancy: 95% Ownership: Son of Ryer Investment Year Built: 1969 Distance from Subject: 1.4 Miles Left: Left of Column A Top: Top of "Property Details" Tenant Charges Water/Sewer Included/Landlord Pays Garbage Included/Landlord Pays Electricity Tenant Pays Electric Heat Tenant Pays Other Charges N/A Unit Type Square Feet Asking Rent Rent/Square Foot Amenity Package 1x1 600 $581 $0.97 Common Area 2x1 800 $646 $0.81 Pool | Laundry Facilities 3x2 1000 $776 $0.78

Unit Microwave | Refrigerator

Concessions None Comments None

Isabella II Estates Rent Comparable

Insert Picture Property Details 4201 Cadbury Court Shreveport, LA 71107 Height 3.25" Market Rate Width 4.33" Units: 44 Management: Tra-Dor Inc Black Border Occupancy: 94% Ownership: Tra-Dor Inc Year Built: 2007 Distance from Subject: 6.7 Miles Left: Left of Column A Top: Top of "Property Details" Tenant Charges Water/Sewer Included/Landlord Pays Garbage Included/Landlord Pays Electricity Tenant Pays Gas Heat Tenant Pays Other Charges N/A Unit Type Square Feet Asking Rent Rent/Square Foot Amenity Package 1x1 600 $430 $0.72 Common Area 2x1 900 $506 $0.56 Leasing Office | Laundry Facilities | BBQ/Picnic 3x2 1100 $610 $0.55 Area 4x2 1200 $618 $0.52

Unit Washer/Dryer Connections | Refrigerator

Concessions None Comments None

Berkshire Court, Kensington Square, and Devonshire Village | 32 Rent Comparables

Vieux Carre Rent Comparable

Insert Picture Property Details 3210 Cloverdale Place Bossier City, LA 71111 Height 3.25" Market Rate Width 4.33" Units: 64 Management: Veiux Carre Black Border Occupancy: 93% Ownership: Monarch Realty and Management Inc Year Built: 2004 Distance from Subject: 5.9 Miles Left: Left of Column A Top: Top of "Property Details" Tenant Charges Water/Sewer Included/Landlord Pays Garbage Included/Landlord Pays Electricity Tenant Pays Electric Heat Tenant Pays Other Charges N/A Unit Type Square Feet Asking Rent Rent/Square Foot Amenity Package 1x1 626 $539 $0.86 Common Area 2x2 821 $608 $0.74 Laundry Facilities 3x2 1011 $700 $0.69

Unit Refrigerator

Concessions None Comments None

Berkshire Court, Kensington Square, and Devonshire Village | 33 Rent Comparables

1. Devonshire Village, Berkshire Court, Kensington Square

2. Yorkshire

3. Windsor Village

4. Fairmont

5. Jefferson

6. Villa Norte

7. Lee Hardware

8. United Jewelers

9. Bayou Oaks

10. Isabella II Estates

11. Viex Carre

Berkshire Court, Kensington Square, and Devonshire Village | 34 SALE COMPARABLES Sale Comparables

Berkshire / Kensington / Devonshire Sales Comparable Summary Shreveport, LA Year Built: 2002 / 2003 / 2002 Units: 150

Sorted by Sales Price Per Unit Distance to Sales Price Per Property Property Type Close Date Year Built Sale Price Units CAP Rate Average Rent Subject Unit (Miles) North Pointe Market Rate May-17 1987 $6,400,000 104 $61,538 N/A $881 6.2 North Park HAP Dec-17 2004 $5,400,000 110 $49,091 N/A $726 5.2 Grand Oaks Market Rate May-18 1988 $3,300,000 73 $45,205 6.00% N/A 6.6 Berkshire / Kensington / Devonshire LIHTC - Family 2002 / 2003 / 2002 $4,150,000 150 $27,667 7.11% $553 Yorkshire & Windsor LIHTC - Family Sep-17 2000 $3,125,000 132 $23,674 7.93% $524 0.2 Averages: 1995 $4,475,000 114 $41,435 7.01% $671

Sorted by CAP Rates Distance to Sales Price Per Property Property Type Close Date Year Built Sale Price Units CAP Rate Average Rent Subject Unit (Miles) Grand Oaks Market Rate May-18 1988 $3,300,000 73 $45,205 6.00% N/A 6.6 Berkshire / Kensington / Devonshire LIHTC - Family 2002 / 2003 / 2002 $4,150,000 150 $27,667 7.11% $553 Yorkshire & Windsor LIHTC - Family Sep-17 2000 $3,125,000 132 $23,674 7.93% $524 0.2 North Pointe Market Rate May-17 1987 $6,400,000 104 $61,538 N/A $881 6.2 North Park HAP Dec-17 2004 $5,400,000 110 $49,091 N/A $726 5.2 Averages: 1995 $4,475,000 114 $41,435 7.01% $671

Sorted by Average Rents Distance to Sales Price Per Property Property Type Close Date Year Built Sale Price Units CAP Rate Average Rent Subject Unit (Miles) North Pointe Market Rate May-17 1987 $6,400,000 104 $61,538 N/A $881 6.2 North Park HAP Dec-17 2004 $5,400,000 110 $49,091 N/A $726 5.2 Berkshire / Kensington / Devonshire LIHTC - Family 2002 / 2003 / 2002 $4,150,000 150 $27,667 7.11% $553 Yorkshire & Windsor LIHTC - Family Sep-17 2000 $3,125,000 132 $23,674 7.93% $524 0.2 Grand Oaks Market Rate May-18 1988 $3,300,000 73 $45,205 6.00% N/A 6.6 Averages: 1995 $4,475,000 114 $41,435 7.01% $671

Berkshire Court, Kensington Square, and Devonshire Village | 36 Sale Comparables

Yorkshire & Windsor Sale Comparable

Insert0Picture Property Details Unit Type Number of Units 2020 North Hearne Avenue 1x1 32 Shreveport, LA 71107 2x1 79 4x2 21 Height 3.25" Width 4.33" LIHTC - Family Units: 132 Black Border Occupancy: 94% Year Built: 2000 Left: Left of Column A Close Date: September 27, 2017 Top: Top of "Property Details" Sale Specifics Sale Price: $3,125,000 Buyer: Marc Menowitz Properties Price/Unit: $23,674 Price/SF: $30.77 Average Rent: $524 Average SF: 769 CAP Rate: 7.93% GRM: N/A Comments CBRE Affordable Housing sale. Cap rate is high due to immediate capital improvement needs at the time of sale.

Grand Oaks Sale Comparable

Insert Picture Property Details Unit Type Number of Units 1601 North Forty Loop 1x1 6 Shreveport, LA 71107 2x1 55 3x2 12 Height 3.25" Width 4.33" Market Rate Units: 73 Black Border Occupancy: N/A Year Built: 1988 Left: Left of Column A Close Date: May 16, 2018 Top: Top of "Property Details" Sale Specifics Sale Price: $3,300,000 Buyer: Thara Properties Price/Unit: $45,205 Price/SF: $53.82 Average Rent: N/A Average SF: 840 CAP Rate: 6.00% GRM: N/A Comments

North Pointe Sale Comparable

Insert Picture Property Details Unit Type Number of Units 2604 Benton Road 1x1 24 Bossier City, LA 71111 2x2 72 3x2 8 Height 3.25" Width 4.33" Market Rate Units: 104 Black Border Occupancy: 97% Year Built: 1987 Left: Left of Column A Close Date: May 11, 2017 Top: Top of "Property Details" Sale Specifics Sale Price: $6,400,000 Buyer: Monarch Realty & Management Price/Unit: $61,538 Price/SF: $51.42 Average Rent: $881 Average SF: 1,197 CAP Rate: N/A GRM: N/A Comments

Berkshire Court, Kensington Square, and Devonshire Village | 37 Sale Comparables

North Park Sale Comparable

Insert Picture Property Details Unit Type Number of Units 2500 Montgomery Lane 1x1 40 Bossier City, LA 71111 2x1 30 3x1 30 Height 3.25" Width 4.33" HAP 4x2 10 Units: 110 Black Border Occupancy: 99% Year Built: 2004 Left: Left of Column A Close Date: December 15, 2017 Top: Top of "Property Details" Sale Specifics Sale Price: $5,400,000 Buyer: Triumph Management Group Price/Unit: $49,091 Price/SF: $67.50 Average Rent: $726 Average SF: 727 CAP Rate: N/A GRM: N/A Comments

Berkshire Court, Kensington Square, and Devonshire Village | 38 Sale Comparables

1. Devonshire Village, Berkshire Court, Kensington Square

2. Yorkshire & Windsor

3. Grand Oaks

4. North Pointe

5. North Park

Berkshire Court, Kensington Square, and Devonshire Village | 39 AFFILIATED BUSINESS DISCLOSURE

CBRE, Inc. operates within a global family of companies with many subsidiaries and related entities (each an “Affiliate”) engaging in a broad range of commercial real estate businesses including, but not limited to, brokerage services, property and facilities management, valuation, investment fund management and development. At times different Affiliates, including CBRE Global Investors, Inc. or Trammell Crow Company, may have or represent clients who have competing interests in the same transaction. For example, Affiliates or their clients may have or express an interest in the property described in this Memorandum (the “Property”), and may be the successful bidder for the Property. Your receipt of this Memorandum constitutes your acknowledgement of that possibility and your agreement that neither CBRE, Inc. nor any Affiliate has an obligation to disclose to you such Affiliates’ interest or involvement in the sale or purchase of the Property. In all instances, however, CBRE, Inc. and its Affiliates will act in the best interest of their respective client(s), at arms’ length, not in concert, or in a manner detrimental to any third party. CBRE, Inc. and its Affiliates will conduct their respective businesses in a manner consistent with the law and all fiduciary duties owed to their respective client(s).

CONFIDENTIALITY AGREEMENT

Your receipt of this Memorandum constitutes your acknowledgement that (i) it is a confidential Memorandum solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property, (ii) you will hold it in the strictest confidence, (iii) you will not disclose it or its contents to any third party without the prior written authorization of the owner of the Property (“Owner”) or CBRE, Inc., and (iv) you will not use any part of this Memorandum in any manner detrimental to the Owner or CBRE, Inc. If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return it to CBRE, Inc.

DISCLAIMER

This Memorandum contains select information pertaining to the Property and the Owner, and does not purport to be all-inclusive or contain all or part of the information which prospective investors may require to evaluate a purchase of the Property. The information contained in this Memorandum has been obtained from sources believed to be reliable, but has not been verified for accuracy, completeness, or fitness for any particular purpose. All information is presented “as is” without representation or warranty of any kind. Such information includes estimates based on forward-looking assumptions relating to the general economy, market conditions, competition and other factors which are subject to uncertainty and may not represent the current or future performance of the Property. All references to acreages, square footages, and other measurements are approximations. This Memorandum describes certain documents, including leases and other materials, in summary form. These summaries may not be complete nor accurate descriptions of the full agreements referenced. Additional information and an opportunity to inspect the Property may be made available to qualified prospective purchasers. You are advised to independently verify the accuracy and completeness of all summaries and information contained herein, to consult with independent legal and financial advisors, and carefully investigate the economics of this transaction and Property’s suitability for your needs. ANY RELIANCE ON THE CONTENT OF THIS MEMORANDUM IS SOLELY AT YOUR OWN RISK.

The Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or to terminate discussions at any time with or without notice to you. All offers, counteroffers, and negotiations shall be non-binding and neither CBRE, Inc. nor the Owner shall have any legal commitment or obligation except as set forth in a fully executed, definitive purchase and sale agreement delivered by the Owner. arm Drive Rouge, LA 70806 Baton & Blum, Inc. NAI Latter 1700 City F CBRE AFFORDABLE HOUSING CBRE AFFORDABLE 1700 SUITE AVENUE, 1420 FIFTH 98101 WA SEATTLE, HANNAH THOMPSON + 1 206 664 9330 [email protected] TO SCHEDULE YOUR TOUR OF THE PROPERTY, PLEASE CONTACT: TO SCHEDULE YOUR TOUR OF THE PROPERTY, VITALIY GOLUBOVICH VITALIY + 1 206 826 5647 [email protected] VITALIY. FOR UNDERWRITING QUESTIONS, PLEASE CONTACT: FOR UNDERWRITING QUESTIONS, PLEASE CONTACT: CHRIS GREMILLION + 1 225 297 7445 LIC. 995683909 [email protected]

JEFF KUNITZ + 1 206 826 5778 LIC. 87462 [email protected] JEFF. JOSHUA RUSSELL + 1 206 826 5642 LIC. 116542 [email protected] BEN BARKER + 1 206 826 5715 LIC. 23085 [email protected]

FOR MORE INFORMATION, PLEASE CONTACT THE LISTING BROKERS BELOW: BROKERS THE LISTING CONTACT PLEASE MORE INFORMATION, FOR

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