WESTMINSTER APARTMENTS Macon, GA NON - ENDORSEMENT and DISCLAIMER NOTICE

Offering Memorandum

WESTMINSTER APARTMENTS Macon, GA NON - ENDORSEMENT AND DISCLAIMER NOTICE

Confidentiality and Disclaimer The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB's or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant's plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. Â© 2017 Marcus & Millichap. All rights reserved.

Non-Endorsement Notice Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation's logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

WESTMINSTER APARTMENTS Macon, GA ACT ID Y0230385 WESTMINSTER APARTMENTS

TABLE OF CONTENTS

SECTION

INVESTMENT OVERVIEW 01 Offering Summary Regional Map Local Map Aerial Photo

FINANCIAL ANALYSIS 02 Rent Roll Summary Rent Roll Detail Operating Statement Pricing Detail Acquisition Financing Growth Rate Projections Cash Flow

MARKET COMPARABLES 03 Sales and On-Market Comparables

Rent Comparables

MARKET OVERVIEW 04 Market Analysis Demographic Analysis WESTMINSTER APARTMENTS

INVESTMENT OVERVIEW

4 WESTMINSTER APARTMENTS

OFFERING SUMMARY EXECUTIVE SUMMARY

VITAL DATA Price $1,400,000 CURRENT PROFORMA - YEAR 1 Down Payment 30% / $420,000 CAP Rate 9.50% 10.82% MAJOR EMPLOYERS Loan Amount $980,000 GRM 5.87 5.66 Net Operating Loan Type Proposed New $132,980 $151,425 Income EMPLOYER # OF EMPLOYEES Net Cash Flow Interest Rate / Amortization 4.50% / 30 Years 17.47% / $73,394 20.44% / $85,839 Bibb County Board Education 4,200 After Debt Service Price/Unit $35,000 Total Return 21.24% / $89,203 24.37% / $102,375 Personnel Department 3,800 Price/SF $31.53 Central GA Hlth Systems Inc 3,601 Number of Units 40 Hospice of Central Georgia 3,300 Rentable Square Feet 44,400 Professional Systems LLC 3,200 Year Built / Renovated 1972 / 2014 Corporation of Mercer Univ 1,632 Mercer Univ Schl Medicine 1,200 County of Bibb 863 Norfolk Southern Corporation 535 UNIT MIX BellSouth 500 NUMBER APPROX. UNIT TYPE McDonalds 489 OF UNITS SQUARE FEET Armstrong World 453 4 1 Bedroom 600 24 2 Bedroom 1,100 12 3 Bedroom 1,300 DEMOGRAPHICS

40 Total 44,400

1-Miles 3-Miles 5-Miles 2016 Estimate Pop 5,503 49,322 96,530 2016 Census Pop 5,563 49,335 96,520 2016 Estimate HH 2,195 18,603 37,080 2016 Census HH 2,222 18,543 37,076 Median HH Income $26,281 $25,819 $31,171 Per Capita Income $14,424 $16,022 $20,062 Average HH Income $35,994 $41,811 $50,811

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OFFERING SUMMARY INVESTMENT OVERVIEW

PROPERTY OVERVIEW: Marcus & Millichap is pleased to present for sale the Westminster Apartments located at 1655 North Atwood Drive, Macon, Georgia 31204. Built in 1972, the property is a 40-unit, townhome-style apartment complex that comprises four 1 bedroom/1 bath units, 24 2 bedroom/1.5 bath units, and 12 3 bedroom/1.5 bath units. Total rentable square footage for the property is 44,400 SF. Each unit features a washer/dryer hookup, central heating and air conditioning, ceiling fans, and complete kitchen appliances including a trash disposal and dishwasher.

MARKET OVERVIEW: Macon (officially MaconBibb County) is a city located in the state of Georgia, United States. Macon lies near the geographic center of the state, approximately 85 miles (137 km) south of Atlanta, hence the city's nickname "the Heart of Georgia."

Settled near the fall line of the Ocmulgee River, Macon is the county seat of Bibb County and had a 2014 estimated population of 153,691. Macon is the principal city of the Macon metropolitan area, which had an estimated population of 231,259 in 2014. Macon is also the largest city in the MaconWarner Robins Combined Statistical Area (CSA), a larger trading area with an estimated 417,473 residents in 2014; the CSA abuts the Atlanta metropolitan area just to the north.

The subject property is located off of Columbus Road (2014 Average Daily Traffic Counts: 32,900 Vehicles per Day) which feeds from Mercer University Drive; the property is also located a half mile from Eisenhower Parkway (2015 Average Daily Traffic Counts: 21,200 Vehicles per Day). Both thoroughfares flank Macon Mall and other various retail shopping centers that feature prominent retailers and eateries such as Olive Garden, Macy's, Burlington Coat Factory, Chick-fil-A, BB&T, Applebee's, The Home Depot, PetSmart, Guitar Center, Marshalls, Target, Walmart Supercenter, Best Buy, Kroger, and much more. The property is also surrounded by many residential neighborhoods and housing developments . Located approximately two miles from the property are entry and exit points to Interstate 475. Also located approximately 2.5 miles from the property is Middle Georgia State University - Macon Campus.

INVESTMENT OVERVIEW: The Westminster Apartments is being offered for $1.4 Million or a 9.50% cap rate on current income. This property is ideal for an investor who is looking to acquire an asset that not only is generating generous cash flows but also does not need a lot of hands-on management from the potential owner. The current owner has maintained a below market expense-to-income ratio at 36.7%. Current physical occupancy is at 88% versus below 50% when the current owner took over the property. Two units are currently being used as an office and additional storage space. A potential investor has the opportunity to transition those two units into profit-generating units.

#6 WESTMINSTER APARTMENTS

OFFERING SUMMARY INVESTMENT OVERVIEW

INVESTMENT HIGHLIGHTS

▪ Price per Unit: $45,000; 88% Physical Occupancy ▪ Excellent 5-Mile Demos: Population - 96,530 People; Avg. HHI - $50,811

▪ Current CAP: 9.50% | Proforma CAP: 10.82% ▪ Potential 17.47% Cash-on-Cash Return ▪ Centrally Located to Lots of Retail Shopping Options and Other Services

#7 WESTMINSTER APARTMENTS

OFFERING SUMMARY PROPERTY SUMMARY

THE OFFERING PROPOSED FINANCING Property Westminster Apartments First Trust Deed Price $1,400,000 Loan Amount $1,260,000 Property Address 1655 North Atwood Drive,Macon,GA Loan Type Proposed New Assessors Parcel Number M084-0193 Interest Rate 4.50% Zoning R-3 Amortization 30 Years SITE DESCRIPTION Loan Term 10 Years Number of Units 40 Loan to Value 70% Number of Buildings 7 Debt Coverage Ratio 2.23 Number of Stories 2 Year Built/Renovated 1972 Rentable Square Feet 44,400 Lot Size 2.75 Acres Type of Ownership Fee Simple Parking 80 Spaces Parking Ratio 2 Spaces per Unit Landscaping Minimal Topography Mostly Flat CONSTRUCTION Foundation Poured Concrete Framing Wood and Drywall Exterior Masonry Brick and Vinyl Siding Parking Surface Asphalt Roof Gable Design with Asphalt Shingles MECHANICAL HVAC Central Air and Heating Wiring Copper Fire Protection Yes

#8 WESTMINSTER APARTMENTS

REGIONAL MAP

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LOCAL MAP

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AERIAL PHOTO

11 WESTMINSTER APARTMENTS

PHOTOS – 1 Bedroom

Kitchen Hallway

Living Room Dining Room

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PHOTOS – 2 Bedroom

Stairway to Apartment Hallway Living Room

Utility Closet Full Bath Half Bath

Kitchen Small Bedroom Large Bedroom

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PHOTOS – 3 Bedroom

Stairway to Apartment Kitchen

Large Bedroom

14 WESTMINSTER APARTMENTS

FINANCIAL ANALYSIS

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FINANCIAL ANALYSIS RENT ROLL SUMMARY

16 WESTMINSTER APARTMENTS

FINANCIAL ANALYSIS RENT ROLL DETAIL

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FINANCIAL ANALYSIS RENT ROLL DETAIL

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FINANCIAL ANALYSIS OPERATING STATEMENT

19 WESTMINSTER APARTMENTS

FINANCIAL ANALYSIS PRICING DETAIL

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FINANCIAL ANALYSIS GROWTH RATE PROJECTIONS

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FINANCIAL ANALYSIS CASH FLOW

22 WESTMINSTER APARTMENTS

ACQUISITION FINANCING

MARCUS & MILLICHAP CAPITAL CORPORATION WHY MMCC?

CAPABILITIES Optimum financing solutions to enhance value MMCC—our fully integrated, dedicated financing arm—is committed to providing superior capital market expertise, precisely managed execution, and unparalleled access to capital sources providing the most competitive rates and Our ability to enhance terms. buyer pool by expanding finance options We leverage our prominent capital market relationships with commercial banks, life insurance companies, CMBS, private and public debt/equity funds, Fannie Mae, Freddie Mac and HUD to provide our clients with the greatest range of Our ability to enhance financing options. seller control • Through buyer Our dedicated, knowledgeable experts understand the challenges of financing qualification support and work tirelessly to resolve all potential issues to the benefit of our clients. • Our ability to manage buyers finance expectations • Ability to monitor and manage buyer/lender progress, insuring timely, predictable closings • By relying on a world class Closed 1,651 National platform $5.1 billion Access to set of debt/equity sources debt and equity operating total national more capital financings within the firm’s volume in 2016 sources than and presenting a tightly in 2016 brokerage any other firm underwritten credit file offices in the industry

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MARKET COMPARABLES

24 WESTMINSTER APARTMENTS

8 SALES COMPARABLES MAP

WESTMINSTER APARTMENTS (SUBJECT) Linkwood Manor 1 Apartments 2 Creekside Vistas

3 Grove at River Place

4 North Avenue Apartments

5 650 Pebble Street

6 Twin Oaks Apartments

7 3561-3569 Thorpe Street

8 275 Straight Street

25 PROPERTYWESTMINSTERNAME APARTMENTS

COMPARABLES SALES COMPARABLES SALES COMPS AVG

ON MARKET COMPARABLES ON MARKET COMPS AVG

Average Cap Rate

11 Avg. 9.32% 10

8 Avg. 9.39%

0 Westminster Linkwood Creekside Grove at North 650 Pebble Twin Oaks 3561-3569 275 Apartments Manor Vistas River Place Avenue Street Apartments Thorpe Straight Apartments Apartments Street Street

26 PROPERTYWESTMINSTERNAME APARTMENTS

COMPARABLES SALES COMPARABLES SALES COMPS AVG

ON MARKET COMPARABLES ON MARKET COMPS AVG

Average Price Per Square Foot

$63.00

$56.70

$50.40

$44.10 Avg. $37.60 $37.80

Avg. $38.16 $31.50

$25.20

$18.90

$12.60

$6.30

$0.00 Westminster Linkwood Creekside Grove at North 650 Pebble Twin Oaks 3561-3569 275 Apartments Manor Vistas River Place Avenue Street Apartments Thorpe Straight Apartments Apartments Street Street

27 PROPERTYWESTMINSTERNAME APARTMENTS

COMPARABLES SALES COMPARABLES SALES COMPS AVG

ON MARKET COMPARABLES ON MARKET COMPS AVG

Average Price Per Unit

$70,000

$63,000

$56,000

$49,000

$42,000 Avg. $34,273 $35,000

$28,000 Avg. $32,859

$21,000

$14,000

$7,000

$0 Westminster Linkwood Creekside Grove at North 650 Pebble Twin Oaks 3561-3569 275 Apartments Manor Vistas River Place Avenue Street Apartments Thorpe Straight Apartments Apartments Street Street

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SALESMARKETING COMPARABLES TEAM

SALES COMPARABLES ON MARKET COMPARABLES

LINKWOOD MANOR APARTMENTS CREEKSIDE VISTAS WESTMINSTER APARTMENTS 3389 Sherry Dr, Macon, GA, 31206 4690 Log Cabin Dr, Macon, GA, 31204 1655 North Atwood Drive, Macon, GA, 31204 1 2

rentpropertyname1 rentpropertyname1 rentpropertyname1

Units Unit Type Units Unit Type Units Unit Type Offering Price: $1,400,000 4 1 Bdr Close Of Escrow: 11/4/2016 40 1 Bdr Bath Close Of Escrow: 12/20/2016 68 1 Bdr 1 Bath Price/Unit: $35,000 24 2 Bdr Sales Price: $1,400,000 15 2 Bdr Bath Days On Market: 201 32 2 Bdr 1.5 Bath Price/SF: $31.53 12 3 Bdr Price/Unit: $25,000 1 3 Bdr Bath Sales Price: $2,550,000 CAP Rate: 9.50% Price/SF: $31.25 Price/Unit: $25,500 Total No. of Units: 40 CAP Rate: 7.00% Price/SF: $32.25 Year Built: 1972 Total No. of Units: 56 CAP Rate: 12.02% Year Built: 1968 Total No. of Units: 100 Year Built: 1973

rentpropertyaddress1 rentpropertyaddress1 rentpropertyaddress1 Underwriting Criteria Underwriting Criteria Income $209,966 Expenses $76,986 Income $655,920 Expenses $350,255 NOI $132,980 Vacancy ($29,442) NOI $306,451

NOTES NOTES On November 4th, 2016 the 56 unit apartment building at 3389 Sherry Formerly WoodCreek Apartments On December 20th, 2016 the 100 unit Drive in Macon, GA 31206 was sold for $1,400,000, or $25,000 per unit. apartment community known as the Creekside Vistas at 4690 Log Cabin The property was sold as an investment at a cap rate of 7% with 100% Drive in Macon, GA was sold for $2,550,000, or $25,500 per unit. The occupancy, according to the listing broker. The buyer indicated that the property was sold as an investment at a reported cap rate of 11.95%. cap rate was closer to 11%. Information was verified with the buyer and Infomration was verified with the listing broker. the listing broker.

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SALESMARKETING COMPARABLES TEAM

SALES COMPARABLES ON MARKET COMPARABLES

GROVE AT RIVER PLACE NORTH AVENUE APARTMENTS 650 PEBBLE STREET 4501 Sheraton Dr, Macon, GA, 31210 853 North Ave, Macon, GA, 31211 650 Pebble St, Macon, GA, 31201

3 4 5

rentpropertyname1 rentpropertyname1 rentpropertyname1

Units Unit Type Units Unit Type Units Unit Type Close Of Escrow: 2/1/2016 100 1 Bdr Bath Close Of Escrow: 5/16/2016 20 2 Bdr 1.5 Bath On Market 16 2 Bdr Bath Days On Market: 139 60 2 Bdr Bath Sales Price: $620,000 Days On Market: 27 Sales Price: $14,525,000 80 2 Bdr Bath Price/Unit: $31,000 List Price: $325,000 Price/Unit: $60,521 Price/SF: $28.97 Price/Unit: $20,312 Price/SF: $61.82 CAP Rate: 11.71% Price/SF: $31.25 CAP Rate: 6.15% Total No. of Units: 20 CAP Rate: 10.30% Total No. of Units: 240 Year Built: 1968 Total No. of Units: 16 Year Built: 1988 Year Built: 1967

rentpropertyaddress1 rentpropertyaddress1 rentpropertyaddress1

NOTES On February 1st, 2016, Madison River Place, a 240-unit multi-family community located at 4501 Sheraton Rd, Macon, GA traded from Equus Capital Partners to a JV Partnership consisting of Mulberry Properties and BRT Realty Trust for a confirmed sales price of $14.525MM. Mulberry Properties has a 20% interest in the property and BRT has an 80% interest in the property. An in-place Cap Rate was reported at 6.15% or an NOI of $893,288. The property was at 96% occupancy at the time of closing. $11.2MM of mortgage debt was obtained in connection with the acquisition. The mortgage matures in 2026 with a 4.39% interest rate. 30 Additional lender information was not available at the time of this report. The property delivered in 1988 and sits on 19.73 acres. The community has a mixture of 1BR (120) and 2BR (138) and 3BR (10) units. Community ammenties include a business center, fitness center, laundry facilities, PROPERTYWESTMINSTERNAME APARTMENTS

SALESMARKETING COMPARABLES TEAM

SALES COMPARABLES ON MARKET COMPARABLES

TWIN OAKS APARTMENTS 3561-3569 THORPE STREET 275 STRAIGHT STREET 185 Clisby Pl, Macon, GA, 31204 3561 Thorpe St, Macon, GA, 31204 275 Straight St, Macon, GA, 31204

6 7 8

rentpropertyname1 rentpropertyname1 rentpropertyname1

Units Unit Type Units Unit Type On Market On Market 8 1 Bdr 1 Bath On Market 4 1 Bdr Bath Days On Market: 9 Days On Market: 63 Days On Market: 641 List Price: $275,000 List Price: $139,000 List Price: $100,000 Price/Unit: $68,750 Price/Unit: $17,375 Price/Unit: $25,000 Price/SF: $60.25 Price/SF: $33.90 Price/SF: $27.23 CAP Rate: 7.85% CAP Rate: 8.00% CAP Rate: 11.40% Total No. of Units: 4 Total No. of Units: 8 Total No. of Units: 4 Year Built: 1920 Year Built: 1961 Year Built: 1969

rentpropertyaddress1 rentpropertyaddress1 rentpropertyaddress1

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8 RENT COMPARABLES MAP

WESTMINSTER APARTMENTS (SUBJECT)

Prospect Heights/Carroll 1 Gardens

2 English Village Apartments

3 Log Cabin Courts

4 Oak Hill Apartments

5 Vista Oaks

6 Carroll Gardens

7 Ridge Pointe

8 Pursley Court Apartments

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RENT COMPARABLES AVERAGE OCCUPANCY

Avg. 90.62%

0 Westminster Prospect English Log Cabin Oak Hill Vista Oaks Carroll Ridge Pursley Apartments Heights/Carroll Village Courts Apartments Gardens Pointe Court Gardens Apartments Apartments

33 PROPERTYWESTMINSTERNAME APARTMENTS

RENT COMPARABLES AVERAGE RENT - MULTIFAMILY

1 Bedroom 2 Bedroom

$600 $700

$540 $630 Avg. $588 $480 Avg. $485 $560

$420 $490

$360 $420

$300 $350

$240 $280

$180 $210

$120 $140

$60 $70

$0 $0 Westminster Prospect Carroll Ridge Pursley Westminster Prospect English Log Cabin Oak Hill Vista Oaks Carroll Ridge Apartments Heights/Carroll Gardens Pointe Court Apartments Heights/Carroll Village Courts Apartments Gardens Pointe Gardens Apartments Gardens Apartments

3 Bedroom

$800

$720 Avg. $709 $640

$560

$480

$400

$320

$240

$160

$80

$0 Westminster English Carroll Ridge Apartments Village Gardens Pointe Apartments

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RENTMARKETING COMPARABLES TEAM

PROSPECT HEIGHTS/CARROLL GARDENS ENGLISH VILLAGE APARTMENTS WESTMINSTERrentpropertyname1 APARTMENTS 365 Rogers Ave, Macon, GA, 31204 2350 English Ave, Macon, GA, 31204 1655 North Atwood Drive, Macon, GA, 31204 rentpropertyaddress1 1 2

rentpropertyname1 rentpropertyname1 rentpropertyname1

Unit Type Units SF Rent Rent/SF Unit Type Units SF Rent Rent/SF Unit Type Units SF Rent Rent/SF 1 Bdr 4 600 $450 $0.75 1 Bdr 4 700 $497 $0.71 2 Bdr 23 1,048 $515 $0.49 2 Bdr 24 1,100 $481 $0.44 2 Bdr 32 950 $650 $0.68 3 Bdr 26 1,310 $578 $0.44 3 Bdr 12 1,300 $542 $0.42 Total/Avg. 36 922 $633 $0.69 Total/Avg. 49 1,187 $548 $0.46 Total/Avg. 40 1,110 $496 $0.45

YEAR BUILT: 1972 OCCUPANCY: 73% | YEAR BUILT: 1973 OCCUPANCY: 92% | YEAR BUILT: 1972 NOTES NOTES Air Conditioning, Alarm, Courtyard, Heating, Tub/Shower, Washer/Dryer, Air Conditioning, Ceiling Fans, Dishwasher, Disposal, Heating, Kitchen, rentpropertyaddress1 Washer/Dryer Hookuprentpropertyaddress1 Concessions: 1 Amenities: Air Conditioning, Oven, Range, Refrigerator,rentpropertyaddress1 Washer/Dryer Hookup Concessions: 0.8 Alarm, Courtyard, Heating, Tub/Shower, Washer/Dryer, Washer/Dryer Amenities: Air Conditioning, Ceiling Fans, Dishwasher, Disposal, Heating, Hookup Kitchen, Oven, Range, Refrigerator, Washer/Dryer Hookup

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RENTMARKETING COMPARABLES TEAM

LOG CABIN COURTS OAK HILL APARTMENTS VISTA OAKS 4053 LOG CABIN DR, MACON, GA, 31204 3330 RIDGE AVE, MACON, GA, 31204 1335 HARTLEY ST, MACON, GA, 31206 3 4 5

LOG CABIN COURTS LOG CABIN COURTS LOG CABIN COURTS

Unit Type Units SF Rent Rent/SF Unit Type Units SF Rent Rent/SF Unit Type Units SF Rent Rent/SF 2 Bdr 20 900 $450 $0.50 2 Bdr 36 1,150 $651 $0.57 2 Bdr 28 1,080 $500 $0.47 Total/Avg. 20 900 $450 $0.50 Total/Avg. 36 1,150 $651 $0.57 Total/Avg. 28 1,080 $500 $0.46

OCCUPANCY: 92% | YEAR BUILT: 1973 OCCUPANCY: 94% | YEAR BUILT: 1970 OCCUPANCY: 92% | YEAR BUILT: 1974 NOTES NOTES NOTES Dining Room, Kitchen, Oven, Range, Washer/Dryer Hookup Air Conditioning, Ceiling Fans, Dishwasher, Heating, Ice Maker, Kitchen, Heating, Kitchen, Oven, Range Concessions: 0.8 Amenities: Heating, Concessions:4053 0.8 LOG Amenities: CABIN Dining DR, Room, MACON, Kitchen, GA, Oven, 31204 Range, Range, Refrigerator,4053 LOG Walk CABIN-In Closets, DR, MACON,Washer/Dryer GA, Hookup, 31204 Yard Kitchen, Oven,4053 Range LOG CABIN DR, MACON, GA, 31204 Washer/Dryer Hookup Concessions: 0.7 Amenities: Air Conditioning, Ceiling Fans, Dishwasher, Heating, Ice Maker, Kitchen, Range, Refrigerator, Walk-In Closets, Washer/Dryer Hookup, Yard

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RENTMARKETING COMPARABLES TEAM

CARROLL GARDENS RIDGE POINTE PURSLEY COURT APARTMENTS 520 BAXTER AVE, MACON, GA, 31201 2981 RIDGE AVE, MACON, GA, 31204 455 PURSLEY ST, MACON, GA, 31201 6 7 8

CARROLL GARDENS CARROLL GARDENS CARROLL GARDENS

Unit Type Units SF Rent Rent/SF Unit Type Units SF Rent Rent/SF Unit Type Units SF Rent Rent/SF 1 Bdr 8 700 $459 $0.66 1 Bdr 16 881 $595 $0.68 1 Bdr 26 450 $390 $0.87 2 Bdr 32 950 $656 $0.70 2 Bdr 16 1,240 $696 $0.57 Total/Avg. 26 450 $390 $0.87 3 Bdr 4 1,200 $755 $0.63 3 Bdr 8 1,344 $795 $0.60 Total/Avg. 44 927 $629 $0.68 Total/Avg. 40 1,117 $675 $0.61

OCCUPANCY: 92% | YEAR BUILT: 1971 OCCUPANCY: 98% | YEAR BUILT: 1987 OCCUPANCY: 92% | YEAR BUILT: 1980 NOTES NOTES NOTES Accent Walls, Air Conditioning, Cable Ready, Carpet, Ceiling Fans, Air Conditioning, Alarm, Cable Ready, Ceiling Fans, Dishwasher, Disposal, Range, Refrigerator, Tub/Shower Concessions: 0.9 Amenities: Range, Heating, Kitchen,520 BAXTERLaundry Facilities, AVE, Oven,MACON, Range, GA, Refrigerator, 31201 Tile Floors, Fireplace, Heating,520 BAXTER Ice Maker, AVE, Kitchen, MACON, Oven, Range, GA, 31201Refrigerator, Refrigerator,520 Tub/Shower BAXTER AVE, MACON, GA, 31201 Vinyl Flooring, Washer/Dryer Hookup Concessions: 0.8 Amenities: Sunroom, Trash Pickup - Curbside, Tub/Shower, Washer/Dryer Hookup Accent Walls, Air Conditioning, Cable Ready, Carpet, Ceiling Fans, Concessions: 0.4 Amenities: Air Conditioning, Alarm, Cable Ready, Heating, Kitchen, Laundry Facilities, Oven, Range, Refrigerator, Tile Floors, Ceiling Fans, Dishwasher, Disposal, Fireplace, Heating, Ice Maker, Vinyl Flooring, Washer/Dryer Hookup Kitchen, Oven, Range, Refrigerator, Sunroom, Trash Pickup - Curbside, Tub/Shower, Washer/Dryer Hookup

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MARKET OVERVIEW

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MARKET OVERVIEW

ATLANTA METRO AREA

Diverse Growth Igniting Apartment Demand, Declining Vacancy and Elevating Rents

Vacancy remains tight despite substantial construction. Growth in degreed fields will expand recruiting to outside of Atlanta and support additional relocations to the metro during 2017, fortifying rental housing demand. New industries will also play a vital role. Notably, the metro has become a hotbed for television and film production, which are bringing hundreds of new jobs to the area. A shortage of production facilities represents the motivation for Georgia Motion Picture Studios to build a $280 million mixed-use development that will become the state’s largest TV and film production lot. Construction begins this year along Atlanta’s northeast perimeter and will include more than 600 apartments. Construction crews remain active around the metro, with several complexes coming online in Midtown and Buckhead. Despite another year of sizable supply growth, healthy tenant demand will tighten the vacancy rate for an eighth consecutive year and raise the average rent to an all-time high in 2017.

Value-add opportunities dominating deal flow. Investor optimism regarding the metro’s economic outlook will encourage transaction activity this year and create new opportunities for owners to bring their properties to market. Investors favor Class B/C garden-style properties within the perimeter near access to major transportation routes. In these areas, improvements and updated amenities can increase market rents and raise property revenue. First-year returns for these assets typically start in the high-5 percent band. The Cumberland/Galleria area also will draw investor interest this year as a new stadium for the Atlanta Braves opens. Several multifamily complexes will be completed near the stadium, providing potential opportunities for investors in institutional-grade assets. Complexes in this area typically trade with cap rates in the low-6 percent range, but the new demand drivers could intensify bidding and place downward pressure on first- year returns.

*Estimate ** Forecast Sources: Marcus & Millichap Research Services; BLS; CoStar Group, Inc.

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MARKET OVERVIEW

ATLANTA METRO AREA

2017 Market Forecast

NMI Rank Corporate expansions drive household growth, moving Atlanta up 14, up 6 places six positions.

Employment Atlanta employers will create 68,000 positions in 2017, extending gains up 2.5% recorded over the past six years. Last year, approximately 79,000 jobs were added.

Construction More than 12,000 apartments remain on track for delivery this year, up from 12,000 units 10,800 units in 2016.

Vacancy Strong tenant demand pushes vacancy down to 4.3 percent. Net down 20 bps absorption of 12,600 units cut the vacancy rate 50 basis points one year ago.

Rent Positive demand drivers and a reduction in vacancy support a 5.0 percent up 5.0% rise in the average rent to $1,128 per month in 2017. An increase of 6.7 percent was posted last year.

Investment Cap rates in the low-6 percent area remain up to 150 basis points higher than the typical first-year returns in gateway cities and will attract out-of- state investors, primarily from New York, California and South Florida, to the Atlanta apartment market.

* Estimate ** Forecast Sources: Marcus & Millichap Research Services; CoStar Group, Inc.; Real Capital Analytics

40 PROPERTYWESTMINSTERNAME APARTMENTS

MARKETINGDEMOGRAPHICS TEAM Created on May 2017

POPULATION 1 Miles 3 Miles 5 Miles HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles ▪ 2021 Projection ▪ 2016 Estimate Total Population 5,547 48,405 95,286 $200,000 or More 0.25% 1.49% 2.29% ▪ 2016 Estimate $150,000 - $199,000 0.81% 0.98% 1.65% Total Population 5,503 49,322 96,530 $100,000 - $149,000 3.18% 4.12% 6.46% ▪ 2010 Census $75,000 - $99,999 5.51% 5.62% 7.84% Total Population 5,563 49,335 96,520 $50,000 - $74,999 14.90% 13.12% 14.84% ▪ 2000 Census $35,000 - $49,999 12.98% 12.95% 12.86% Total Population 5,558 51,074 98,244 $25,000 - $34,999 14.53% 12.96% 11.70% ▪ Daytime Population $15,000 - $24,999 20.03% 19.39% 16.16% 2016 Estimate 7,186 56,062 131,834 Under $15,000 27.79% 29.35% 26.21% HOUSEHOLDS 1 Miles 3 Miles 5 Miles Average Household Income $35,994 $41,811 $50,811 ▪ 2021 Projection Median Household Income $26,281 $25,819 $31,171 Total Households 2,231 18,317 36,877 Per Capita Income $14,424 $16,022 $20,062 ▪ 2016 Estimate POPULATION PROFILE 1 Miles 3 Miles 5 Miles Total Households 2,195 18,603 37,080 ▪ Population By Age Average (Mean) Household Size 2.53 2.59 2.47 2016 Estimate Total Population 5,503 49,322 96,530 ▪ 2010 Census Under 20 31.02% 32.03% 29.15% Total Households 2,222 18,543 37,076 20 to 34 Years 21.92% 21.21% 21.94% ▪ 2000 Census 35 to 39 Years 5.77% 5.60% 5.82% Total Households 2,194 19,961 38,576 40 to 49 Years 11.03% 11.35% 11.58% Growth 2015-2020 1.64% -1.54% -0.55% 50 to 64 Years 18.31% 17.67% 18.39% HOUSING UNITS 1 Miles 3 Miles 5 Miles Age 65+ 11.94% 12.13% 13.13% ▪ Occupied Units Median Age 32.62 32.34 34.10 2021 Projection 2,231 18,317 36,877 ▪ Population 25+ by Education Level 2016 Estimate 2,475 22,316 44,279 2016 Estimate Population Age 25+ 3,348 29,450 60,143 Owner Occupied 945 7,967 17,506 Elementary (0-8) 3.88% 4.39% 3.72% Renter Occupied 1,250 10,637 19,574 Some High School (9-11) 15.13% 16.17% 14.28% Vacant 280 3,713 7,199 High School Graduate (12) 40.70% 37.56% 33.11% ▪ Persons In Units Some College (13-15) 20.19% 19.29% 19.92% 2016 Estimate Total Occupied Units 2,195 18,603 37,080 Associate Degree Only 8.62% 6.78% 6.29% 1 Person Units 27.61% 29.66% 32.10% Bachelors Degree Only 8.19% 9.02% 13.12% 2 Person Units 31.57% 28.60% 30.17% Graduate Degree 2.32% 5.08% 7.90% 3 Person Units 18.41% 17.38% 16.02% ▪ Population by Gender 4 Person Units 12.39% 12.11% 11.33% 2016 Estimate Total Population 5,503 49,322 96,530 5 Person Units 6.20% 6.62% 5.70% Male Population 44.04% 45.52% 46.89% 6+ Person Units 3.83% 5.63% 4.68% Female Population 55.96% 54.48% 53.11%

41 PROPERTYWESTMINSTER NAME APARTMENTS

MARKETINGDEMOGRAPHICS TEAM

Population Race and Ethnicity In 2016, the population in your selected geography is 49,322. The The current year racial makeup of your selected area is as follows: population has changed by -3.43% since 2000. It is estimated that 20.78% White, 75.38% Black, 0.03% Native American and 0.86% the population in your area will be 48,405.00 five years from now, Asian/Pacific Islander. Compare these to US averages which are: which represents a change of -1.86% from the current year. The 70.77% White, 12.80% Black, 0.19% Native American and 5.36% current population is 45.52% male and 54.48% female. The median Asian/Pacific Islander. People of Hispanic origin are counted age of the population in your area is 32.34, compare this to the US independently of race. average which is 37.68. The population density in your area is 1,744.61 people per square mile. People of Hispanic origin make up 2.74% of the current year population in your selected area. Compare this to the US average of 17.65%.

Households Housing There are currently 18,603 households in your selected geography. The median housing value in your area was $80,406 in 2016, compare The number of households has changed by -6.80% since 2000. It is this to the US average of $187,181. In 2000, there were 10,093 owner estimated that the number of households in your area will be 18,317 occupied housing units in your area and there were 9,868 renter five years from now, which represents a change of -1.54% from the occupied housing units in your area. The median rent at the time was current year. The average household size in your area is 2.59 persons. $349.

Income Employment In 2016, the median household income for your selected geography is In 2016, there are 20,562 employees in your selected area, this is also $25,819, compare this to the US average which is currently $54,505. known as the daytime population. The 2000 Census revealed that The median household income for your area has changed by -1.96% 52.75% of employees are employed in white-collar occupations in since 2000. It is estimated that the median household income in your this geography, and 47.21% are employed in blue-collar occupations. area will be $30,121 five years from now, which represents a change In 2016, unemployment in this area is 9.37%. In 2000, the average of 16.66% from the current year. time traveled to work was 22.00 minutes.

The current year per capita income in your area is $16,022, compare this to the US average, which is $29,962. The current year average household income in your area is $41,811, compare this to the US average which is $78,425.