1,790 Uni t Manhattan Apartment Investment Opportunity

SAVOY PARK APARTMENTS

Savills Studley, Inc. (“Savills”) has been retained by SLM Savoy Park I, LLC (the “Owner”), as exclusive financial advisor for the recapitalization of Savoy Park Apartments, a 1,790 unit apartment community, consisting of seven, 16 story buildings located on a landscaped 10.5 acre gated site bounded by Fifth Avenue and Lenox Avenue between 139th Street and 142nd Street in Manhattan, New York (the “Property”, the “Portfolio or “Savoy Park”).

Acquired in June 2012 by affiliates L+M Development Partners (“L+M”) and Savanna (“Savanna”), (jointly, the “Sponsor” or “Sponsors”), the Property has undergone a major capital improvement/repositioning program and been managed to high institutional standards.

Savoy Park represents an extremely rare opportunity to invest in a large, irreplaceable, institutional quality Manhattan apartment community with secure cash flow and significant value-add upside.

Morris-Jumel m o Yankee r 16 Mansion e E J Stadium W 159th St. D B INVESTMENT HIGHLIGHTS 4 W 157th St. Macombs Dam 1 Park Nation’ s Strongest Apartment Market: G W

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Major Capital Expenditures Completed: The Cathedral Church Manhattan of St. John the Divine Over the past 9 years, more than $50 million of major

W 110th St. capital expenditures have been completed at Savoy B C 2 3 1 6 Park including: Unit Renovations ($34.7MM), Façade Central W 107th St. Park Work ($6.3MM), Boiler Upgrades ($2.5MM), Electri - cal/Sub-metering ($1.3MM), Security Upgrades ($1.9MM), Office Improvements ($1.1MM), Plumbing Risers/Valves ($1.0MM), Roof Fans/Intercoms/HVAC Computer/Miscellaneous Items ($3.1MM), and Site Work ($500k). In addition, windows at the Property were also replaced in the past 12 years. These ex - tensive capital improvements generate significant operating and energy expense savings and position the Property to compete effectively in the market. The improvements also dramatically reduce capital risk and requirements going forward, allowing Prop - erty ownership to focus on income producing apart - ment renovations.

2 | INVESTMENT SUMMARY Proven Value Enhancement Plan:

Since purchasing the Property in June 2012, the Sponsor has executed a suc - cessful value-add plan which included major building improvements and full ren - ovation of units as they become available through normal turnover. To date, the Sponsor has renovated 294 units at an av - erage cost of $38,278/unit, generating an average 24% return-on-cost and monthly rental increase of $750/unit. In addition, a new 40-year tax abatement agreement, improved operating efficiencies and en - ergy savings have also significantly in - creased cash flow at the Property. In aggregate, the Sponsor has increased ef - fective gross income at the Property by approximately 23.8% since acquisition, generating a compounded annual growth rate of approximately 6.9%. These results prove out operating efficiencies and future upside from renovating remaining units as they become available.

Dependable CF & Significant Upside: With major capital improvements com - pleted and institutional management in place, the Property provides highly de - pendable cash flow with exceptional value creation potential. With 53.6% of the Prop - erty’s units renovated to-date, and an av - erage $912/month estimated increase for renovated units, renovating the 800 re - maining units would generate over $9.0 million of additional annual Gross Potential Rent.

SAVOY PARK | NEW YORK CITY | 3 INVESTMENT HIGHLIGHTS (CONTINUED)

Highly Attractive Basis vs. Replacement Cost: Assets of Savoy Park’s size and scale rarely be - come available and the Property offers an oppor - tunity to invest in institutional quality Manhattan workforce housing at well below 50% of current replacement cost. Given extremely high land and construction costs, the Property is positioned to benefit from strong ongoing rental growth as de - mand continues to significantly outpace the lim - ited supply of high quality housing alternatives for middle-income New Yorkers.

Shelter Rent Tax Abatement: Current ownership entered the Property into an Article XI Regulatory Agreement to provide workforce housing which provides a tax abate - ment in the form of a Shelter Rent Tax, saving the Property approximately $2.4 million of an - nual real estate tax expense.

FOR MORE INFORMATION

Jeffrey Baker Executive Managing Director 212.328.3941 • [email protected]

Graham Hobbs Managing Director 212.328.3952 • [email protected]

David Stewart Director 212.328.3955 • [email protected]

Ashley Earnest Associate Director 212.328.3977 • [email protected]

399 Park Avenue, 11th Floor New York, NY 10022 T: 212.328.2800 • F: 212.326.1034

4 | INVESTMENT SUMMARY SAVOY PARK | NEW YORK CITY | 5