| EXCLUSIVE MULTIFAMILY OFFERING

DAVID OAKLEY Senior Vice President 205.918.0785 [email protected]

DAVID ETCHISON Senior Associate 205.918.0785 [email protected] 5800 Eagle Circle | Montgomery, AL 36116 ROYCE EMERSON 392 Units | Built: 1986 | $15,000,000 Senior Associate 205.918.0785 [email protected]

Attractive Double-Digit Cash-on-Cash Returns Superior Unit Mix and Amenities Value-Add Opportunity through Interior Upgrad Employment Growth Outpacing National Average

For Real-Time Property Information go to: eaglelanding.hpapts.com DAVID OAKLEY Attractive Double-Digit Cash-on-Cash Returns Senior Vice President 205.918.0785 Superior Unit Mix and Amenities [email protected]

DAVID ETCHISON Value-Add Opportunity through Interior Upgrad Senior Associate 205.918.0785 Employment Growth Outpacing National Average [email protected]

ROYCE EMERSON Senior Associate 205.918.0785 [email protected] For Real-Time Property Information Scan QR code or go to:

eaglelanding.hpapts.com Alabama Office 2120 16th Avenue South Suite 101 HENDRICKS & PARTNERS IS NOW HENDRICKS-BERKADIA Birmingham, Alabama 35205 To find out more visit HendricksBerkadia.com/merger Phone: 205.918.0785 Fax: 205.918.0786

hendricksberkadia.com apartmentupdate.com THE ASSET The Opportunity 1 Property Summary 3 Upgraded Units 5 Location Description 6 Location Map 8 Aerials 9 Floor Plans 12 Property Photos 13

VALUATION Financial Analysis 16 Notes to Pro Forma 23

MARKET POSITIONING Comparable Rental Properties 25 Comparable Sale Properties 30

APPENDIX Economic & Demographic Profile 32 Demographics 37

EAGLE LANDING eaglelanding.hpapts.com THE OPPORTUNITY

Hendricks-Berkadia is pleased to announce the exclusive opportunity to acquire Eagle Landing, a 392-unit garden style apartment community in the rejuvenated Eastern submarket of Montgomery, Alabama. Investors have the opportunity to purchase a well-positioned multifamily asset that received over $1,500,000 in renovations in the past two years. This solid "B" quality community boasts an average floor plan size of 992 square feet with washer/dryer connections in every unit. With stabilizing operations and continuing the already proven value-add interior upgrade program, Eagle Landing is poised to experience strong rental demand and consistent future income growth.

In a submarket dominated by 1970’s communities, Eagle Landing’s 1986 brick construction sets it apart as a premier asset among the competition. Eagle Landing, a gated and fenced community, in the heart in the thriving Eastern submarket of Montgomery, AL will continue to realize pent up demand from the strong work force housing.

Positive Trending Property Operations – Eagle Landing has seen increases in occupation and rent collection in the Q1 of 2013. The positive trends are continuing and Eagle Landing is primed to see continued income growth.

Superior Unit Mix – Eagle Landing has a marketable unit mix of one-, two- and three-bedroom units to accommodate a variety of household sizes. With a bigger variety of units than the competition, Eagle Landing will see continued organic rent growth. With the minor interior upgrades or property updates, Eagle Landing could also see further rent growth Year One.

Exceptional Double-Digit Cash Yield - Investors can take advantage of attractive agency financing, and interest only debt options that are currently available. Based on the recent collections and the projected future earnings, Eagle Landing will deliver above average cash-on-cash returns to investors.

Significant Value-Add Opportunity – Ability to increase rental income through interior unit upgrades such as hardwood flooring, new lighting packages, cabinet and hardware upgrades, and other minor cosmetic finishes.

EAGLE LANDING 1 eaglelanding.hpapts.com THE OPPORTUNITY

Close Proximity to Demand Drivers – Located in close proximity to downtown Montgomery, Alabama State Capital, the Hyundai Motor Manufacturing plant, Maxwell Air Force base, and other major employment - all with easy access to major interstates.

Excellent Apartment Market Fundamentals

Positive Rent Growth: For fiscal year 2013, fair market rents, as defined by the U.S. Department of Housing & Urban Development (HUD) ranged from $629 for efficiency units to $1,291 for four-bedroom units in the Montgomery MSA. Compared to five years earlier, fair market rents have risen by a range of 11.7% to 26.8%, depending on unit type.

Sustainable Employment: Over the year ended in April of 2013, the Montgomery MSA recorded an employment gain of 1.3%, equating to the addition of 2,100 jobs. This marked the metro area’s strongest employment growth rate for any April since 2007. According to Moody’s, employment growth in Montgomery will rise to 2.7% in 2014 as a net total of 4,600 jobs are added to local payrolls.

Constant Demand: From 1990 to 2013, the population of the Montgomery MSA rose from 305,175 to 383,358, an increase of 25.6%. By 2018, the area’s population is projected to rise to 397,969, up by an annual average of 0.75% over the next five years, compared to 0.68% nationally. The median age for the metro area is 36.2 years, with 21.3% of residents within the key renter demographic of 20 to 34 years of age, slightly above the national share of 20.6%.

EAGLE LANDING 2 eaglelanding.hpapts.com PROPERTY SUMMARY

Address 5800 Eagle Circle Montgomery, AL 36116

Number of Units 392 Total

Year Built 1984-1986

Total Rentable Square Footage 388,800

Average Square Footage 992

Acreage +/- 23.16

Parking 690 Spaces 1.72 Spaces per Unit

Number of Buildings 49, Two-Story Rental Buildings

Structure Wood Frame Reinforced Concrete

Roofs Pitched Asphalt/Fiberglass 20 Buildings Have New Roofs* (*within the last 18 months)

Exterior Brick & Masonite Exterior

Patio/Balconies Wood Decking / Concrete

Unit Interiors Ceiling Fans in Select Units Washer/Dryer in Select Units Washer/Dryer Connections in All Units Balconies/Patios Vinyl and Carpet Flooring Fireplaces Walk-In Closets Central A/C Heating High Speed Internet Cable TV Available

Kitchens Built-In Microwaves in Select Units Frost Free Refrigerators w/Ice Makers Electric Ovens/Stoves w/Vent Hood Dishwashers Garbage Disposal Stainless-Steel Sink Stained Walnut Cabinetry

Bathrooms Vinyl Flooring Walnut Wood Cabinetry

EAGLE LANDING 3 eaglelanding.hpapts.com PROPERTY SUMMARY

Plumbing Copper & PVC

Wiring Copper

HVAC Central Heating & Air with Individual Exterior Ground-Mounted Units

Community Amenities Multi-Functional Area-Basketball, Volleyball, Four Square, Etc. Business Center Onsite Three Swimming Pools Three Playgrounds Fitness Center Courtyard Clubhouse 392 Exterior Storage Units Gated / Controlled Access Public Transportation Freeway Access

Schools Montgomery School District Brewbaker Elementary Brewbaker Intermediate Brewbaker Junior High School Brewbaker Tech Magnet High

Utilities Utility/Service Provider Separately Metered Residents Pay Residents Reimburse Directly Property Electricity Alabama Power Yes Yes No

Gas N/A No N/A N/A

Water/Sewer Montgomery Water No No No Works Cable/Internet Knology & AT&T Yes Yes No

Trash Advanced Disposal No No No

EAGLE LANDING 4 eaglelanding.hpapts.com UPGRADED UNITS

Eagle Landing has fully upgraded 50 units (13% of units) and STANDARD has leased upgraded units at an average $50 premium above the then-current effective street rents. Of the 392 units at Eagle Landing 280 have received partial or full renovations, bringing total interior renovation cost to $700,000. Fully upgraded interiors include new black appliances, vinyl flooring, counter top restoration, new cabinet doors, new lighting fixtures, and new carpet. Costs to implement the upgrade are approximately $2,950 per unit. With the recent completion of the comprehensive clubhouse / leasing office / amenity package upgrade, the property is now ideally positioned to accelerate the unit interior upgrade program and to get more aggressive on the premium charged for renovated units.

RENOVATION COST SUMMARY Upgrades Average Cost Appliances $1,500 Fixtures/Hardware $250 UPGRADE Flooring $1,200 Total $2,950

The average upgraded unit rental premium achieved to date has been $50 in excess of the base rent for a non-upgraded unit of the same floor plan type. At $2,950/unit upgrade cost this premium generates a 20% ROI. Since the completion of the major renovations, the demand for the newly renovated interiors has increased significantly.

EAGLE LANDING 5 eaglelanding.hpapts.com LOCATION DESCRIPTION

Eagle Landing is located at 5800 Eagle Circle in Montgomery, AL, conveniently situated near U.S. Highway 80 and Interstate Highway 85, the major east-west freeway traversing Montgomery. Neighborhood shopping, services, and conveniences include Walmart, Target, Walgreens, CVS, Winn-Dixie, Publix, Texas Roadhouse, and Red Lobster. Additional retail and dining is located nearby at Eastdale Mall, a 964,717-square foot enclosed center anchored by Sears, Dillard’s, and JCPenney. This shopping destination currently hosts over 80 different retailers including Montgomery’s only ice skating rink. Also close by is The Shoppes at EastChase, a premier 400,000-square-foot lifestyle center as well as an additional 500,000-square-foot power center component featuring Dillards, Kohls, and Target. This newly built shopping venue features an impressive list of other national retailers such as Ann Taylor, Banana Republic, Williams-Sonoma, Cost Plus World Market, and Pier 1 Imports.

Eagle Landing is strategically located to take advantage of the city’s major demand generators, many of which are within close proximity to the property. Maxwell-Gunther Air Force base, the city’s largest employer, with 12,280 employees is located nine miles to the north. Another major employer, UAB Hospital, is located approximately three miles west of the property and employs over 18,750 employees. Additionally, Faulkner University with over 3,500 students is located approximately five miles to the north and Auburn University at Montgomery, which enrolls more than 5,000 students, is located within six miles northeast of Eagle Landing. Eagle Landing is situated within the Montgomery School District, the third-largest district in Alabama. Brewbaker Elementary School, Brewbaker Intermediate School, and Brewbaker Technology Magnet High School service the property.

With a population of 207,233 residents, Montgomery is the largest city in the Montgomery metro area, which is home to 380,504 people and encompasses Autauga, Elmore, Lowndes, and Montgomery counties. With its central location along the Alabama River and rail connections, Montgomery is a processing hub for crops as well as a regional distribution hub for a wide range of industries. Major industries for the area include fabricated metals, automotive, plastics, warehouse/distribution, and state and regional government. Notable employers include the State of Alabama (9,500 employees), Montgomery Public Schools (4,524 employees), and Hyundai Motor Manufacturing (2,700 employees). Beginning along the riverfront, Montgomery has added value to their downtown with construction of a boardwalk, large convention center, a four-star hotel and the 7,000 seat RiverWalk Stadium. The metro area also offers a number of entertainment and recreation options including state parks, museums and festivals, including Rosa Parks Library and Museum, Montgomery Museum of Fine Arts, Montgomery Zoo and Civil Rights Memorial Center.

EAGLE LANDING 6 eaglelanding.hpapts.com LOCATION DESCRIPTION

UNIT AMENITIES COMMON AREA AMENITIES

Frost-Free Refrigerators w/Ice Makers Three Swimming Pools Dishwashers Three Playgrounds Stoves with Vent Hood Fitness Center Double Stainless-Steel Sinks Courtyard Built-In Microwaves in Select Units Resident Clubhouse Washer/Dryer Connections Controlled Access Gate Walnut Stained Wood Cabinetry Exterior Storage Per Unit Wood-Look Vinyl Floors Recently Converted Sports Court Walk-In Closets Balconies/Patios Central Heating & A/C High-Speed Internet/Cable Access

EAGLE LANDING 7 eaglelanding.hpapts.com LOCATION MAP

EAGLE LANDING 5800 Eagle Circle Montgomery, AL 36116

EAGLE LANDING 8 eaglelanding.hpapts.com AERIALS

EAGLE LANDING 9 eaglelanding.hpapts.com AERIALAERIALS

Redevelopment Map

Eagle Landing is located in a neighborhood that is experiencing an infusion of capital dollars. Below is a map diagramming the areas of redevelopment this market is experiencing.

EAGLE LANDING 10 eaglelanding.hpapts.com AERIALS

EAGLE LANDING 11 eaglelanding.hpapts.com FLOOR PLANS

THE EAGLET THE EAGLE

One-Bedroom / One-Bath Two-Bedroom / Two-Bath 800 Square Feet 1,000 Square Feet

THE NEST

Three-Bedroom / Two-Bath 1,200 Square Feet

EAGLE LANDING 12 eaglelanding.hpapts.com PROPERTY PHOTOS

EAGLE LANDING 13 eaglelanding.hpapts.com PROPERTY PHOTOS

EAGLE LANDING 14 eaglelanding.hpapts.com PROPERTY PHOTOS

EAGLE LANDING 15 eaglelanding.hpapts.com FINANCIAL ANALYSIS

PRO FORMA INCOME & EXPENSES Eagle Landing 5800 Eagle Circle, Montgomery AL 36116 1986

Monthly Annual Units Type Unit SF Total SF Market Rent Rent / SF Mkt. Rent Mkt. Rent 44 1X1B 800 35,200 $580 $25,520 $306,240 $0.73 27 1X1C 800 21,600 $589 $15,903 $190,836 $0.74 1 1X1P 800 800 $615 $615 $7,380 $0.77 194 2X2B 1,000 194,000 $640 $124,160 $1,489,920 $0.64 65 2X2C 1,000 65,000 $639 $41,535 $498,420 $0.64 5 2X2P 1,000 5,000 $699 $3,495 $41,940 $0.70 38 3X2B 1,200 45,600 $750 $28,500 $342,000 $0.63 15 3X2C 1,200 18,000 $769 $11,535 $138,420 $0.64 3 3X2P 1,200 3,600 $799 $2,397 $28,764 $0.67 392 992 388,800 $647 $253,660 $3,043,920 $0.65

Hendricks May 2013 May 2013 Berkadia Trailing-6 Trailing 12 Income Pro Forma Annualized Annualized

Scheduled Market Rent $3,043,920 $3,040,804 $3,035,758 Less: Loss to Lease 3.25% ($98,927) ($114,892) ($111,646) Less: Vacancy 10.00% ($304,392) ($568,725) ($574,834) Less: Concessions 3.75% ($114,147) ($108,490) ($128,506) Less: Non-Rev / Bad Debt / Adjust 3.00% ($91,318) ($186,297) ($180,437) Net Rental Income $2,435,136 $2,062,400 $2,040,335

Plus: Fee Income $80,951 $77,024 $78,593 Plus: RUBS / Cable Income $2,410 $1,660 $830 Plus: Other Income $56,257 $55,566 $54,619 Total Operating Income (EGI) $2,574,754 $2,196,651 $2,174,377

Expenses Per Unit Administrative $175 $68,600 $64,982 $62,849 Advertising & Promotion $100 $39,200 $37,372 $33,111 Payroll $950 $372,400 $404,095 $398,745 Repairs & Maintenance / Turnkey $488 $191,100 $243,677 $225,705 Grounds & Landscaping $75 $29,400 $35,811 $30,358 Management Fee 3.00% $197 $77,243 $76,856 $75,665 Utilities-Electric / Gas $209 $82,047 $76,763 $80,403 Utilities-Water / Sewer $353 $138,445 $138,378 $145,936 Pest Control / Garbage $124 $48,563 $38,877 $36,142 Real Estate Taxes 0.7300% $279 $109,500 $75,600 $69,973 Insurance $200 $78,400 $78,750 $75,377 Replacement Reserve $300 $117,600 $0 $0 Total Expenses $1,352,498 $1,271,161 $1,234,264

Per Unit: $3,450 $3,243 $3,149 Per SF: $3.48 $3.27 $3.17

Net Operating Income $1,222,257 $925,490 $940,113

Less: Debt Service ($676,027) Projected Net Cash Flow $546,229 Total Economic Loss 20.0% Cash-on-Cash Return 14.14% Debt Service Coverage 1.81

Cap Rate Analysis Price $/Unit $/Foot Cap Rate Listing Price $15,000,000 $38,265 $38.58 8.15%

All Financing Total Loan Amount Down Payment LTV Mo. Payment Debt Constant $11,250,000 $3,862,500 75% ($56,336) 6.0%

New First Mortgage (to be originated at purchase) LTV for this loan Amount Interest Rate Amortization Payment Fees I/O Term (yrs) 75% $11,250,000 4.40% 30 ($56,336) 1.00% 0

I MPORTANT I NFORMATI ON & DI SCLAI MER: The information contained herein is assumed to be correct and market-supported. Output produced from this model should not be considered an appraisal. Projections are forecasts and are not to be considered fact. The information contained in this file is privileged and confidential; it is intended only for use by Hendricks-Berkadia and their clients. This file may not be reproduced physically or in electronic format without the expressed written consent of Hendricks-Berkadia. CAUTION: Security codes have been included into this file and unauthorized use may render this file useless. Hendricks-Berkadia Employees, affiliates, and contractors are instructed to hard-code this model for reproduction and distribution. Not responsible for errors and omissions. COPYRIGHT 2013, All Rights Reserved. DRAFT REPORT: Privileged & Confidential, For Discussion Purposes Only

DRAFT REPORT: Privileged & Confidential, For Discussion Purposes Only

EAGLE LANDING 16 eaglelanding.hpapts.com FINANCIAL ANALYSIS

PRO FORMA / HISTORICAL OPERATIONS COMPARISON Eagle Landing

May 2013 Trailing-6 Income Pro Forma NET CHANGE Annualized Scheduled Market Rent $3,043,920 0.1% $3,040,804 Less: Loss to Lease 3.25% ($98,927) ($114,892) Less: Vacancy 10.00% ($304,392) ($568,725) Less: Concessions 3.75% ($114,147) ($108,490) Less: Non-Rev / Bad Debt / Adjust 3.00% ($91,318) ($186,297) Net Rental Income $2,435,136 18.1% $2,062,400 Plus: Fee Income $80,951 5.1% $77,024 Plus: RUBS / Cable Income $2,410 45.2% $1,660 Plus: Other Income $56,257 1.2% $55,566 Total Operating Income (EGI) $2,574,754 17.2% $2,196,651

Net Rental Income / Month $202,928 $171,867 Total Operating Income (EGI) / Month $214,563 $183,054 Total Operating Income (EGI) / Unit $547 $467

Expenses Per Unit Per Unit Administrative $175 $68,600 5.6% $64,982 $166 Advertising & Promotion $100 $39,200 4.9% $37,372 $95 Payroll $950 $372,400 -7.8% $404,095 $1,031 Repairs & Maintenance / Turnkey $488 $191,100 -21.6% $243,677 $622 Grounds & Landscaping $75 $29,400 -17.9% $35,811 $91 Management Fee $197 $77,243 0.5% $76,856 $196 Utilities-Electric / Gas $209 $82,047 6.9% $76,763 $196 Utilities-Water / Sewer $353 $138,445 0.0% $138,378 $353 Pest Control / Garbage $124 $48,563 24.9% $38,877 $99 Real Estate Taxes $279 $109,500 44.8% $75,600 $193 Insurance $200 $78,400 -0.4% $78,750 $201 Replacement Reserve $300 $117,600 $0 $0 Total Expenses $1,352,498 6.4% $1,271,161

Net Operating Income $1,222,257 32.1% $925,490 Less: Debt Service ($676,027) ($676,027) Projected Net Cash Flow $546,229 $249,463 Cash on Cash Return (Based on Ask Price) 14.14% 6.46%

IMPORTANT INFORMATION & DISCLAIMER: The information contained herein is assumed to be correct and market-supported. Output produced from this model should not be considered an appraisal. Projections are forecasts and are not to be considered fact. The information contained in this file is privileged and confidential; it is intended only for use by Hendricks-Berkadia and their clients. This file may not be reproduced physically or in electronic format without the expressed written consent of Hendricks-Berkadia. CAUTION: Security codes have been included into this file and unauthorized use may render this file useless. Hendricks-Berkadia Employees, affiliates, and contractors are instructed to hard-code this model for reproduction and distribution. Not responsible for errors and omissions. COPYRIGHT 2013, All Rights Reserved. DRAFT REPORT: Privileged & Confidential, For Discussion Purposes Only

DRAFT REPORT: Privileged & Confidential, For Discussion Purposes Only

EAGLE LANDING 17 eaglelanding.hpapts.com FINANCIAL ANALYSIS

TECHNICAL ANALYSIS OF PROPERTY Eagle Landing

Revenue Allocation

Scheduled Gross Revenue Allocation

Economic Vacancy 17.2% 19.1% 21.2% Expenses 39.0%

Property Tax 3.4% Debt Servicing

Net Cash Flow

Distribution of Expenses Total Expense Allocation

Administrative

Advertising & Promotion 8.7% 5.1% 2.9% 5.8% Payroll 8.1% 27.5% Repairs & Maintenance / Turnkey Management Fee 14.1% 3.6% Utilities-Electric / Gas

6.1% Pest Control / Garbage 5.7% Real Estate Taxes

Insurance

Replacement Reserve

Equity Position / Growth 25,000,000

20,000,000

15,000,000

10,000,000

5,000,000

0 123456789 10

Mortgage Balance Projected Value

IMPORTANT INFORMATION & DISCLAIMER: The information contained herein is assumed to be correct and market-supported. Output produced from this model should not be considered an appraisal. Projections are forecasts and are not to be considered fact. The information contained in this file is privileged and confidential; it is intended only for use by Hendricks-Berkadia and their clients. This file may not be reproduced physically or in electronic format without the expressed written consent of Hendricks-Berkadia. CAUTION: Security codes have been included into this file and unauthorized use may render this file useless. Hendricks-Berkadia Employees, affiliates, and contractors are instructed to hard-code this model for reproduction and distribution. Not responsible for errors and omissions. COPYRIGHT 2013, All Rights Reserved. DRAFT REPORT: Privileged & Confidential, For Discussion Purposes Only

DRAFT REPORT: Privileged & Confidential, For Discussion Purposes Only

EAGLE LANDING 18 eaglelanding.hpapts.com FINANCIAL ANALYSIS

EXECUTIVE SUMMARY Eagle Landing

Property I nformation

Number of Units 392 Rentable Square Feet 388,800 Average Square Feet per Unit 992 Vacancy 10.00% Year Built 1986 Average Market Rent $647

Purchase Summary

Residual Property Value Offering Price $15,000,000 25,000,000 Price Per Unit $38,265

20,000,000

Price Per Square Foot $38.58

GRM 4.93 15,000,000 Capitalization Rate 8.15%

10,000,000 $22,768,275 $22,356,545 $22,356,545 $18,915,940 $18,915,940 $20,062,480 $20,062,480 $21,854,195 $21,854,195 $20,636,735 $20,636,735 $18,375,175 $18,375,175

All Cash 10-Year IRR 12.70% $17,292,660 $15,480,260 $15,480,260 Leveraged 10-Year IRR 26.60% 5,000,000 $16,219,010 0 EOY EOY EOY EOY EOY EOY EOY EOY EOY EOY 1 2 3 4 5 6 7 8 9 10

Year One Forecasted Operations Summary

Net Operating Income Effective Gross Income $2,574,754 2,500,000 Operating Expenses $1,234,898

2,000,000

Capital Reserves $117,600

1,500,000

Net Operating Income (NOI) $1,222,257 $1,885,855

1,000,000 $1,985,950 $1,780,857 $1,680,396 $1,584,289 $1,492,363 $1,404,451

500,000 $1,317,304 $1,257,286 $1,222,257

0 EOY EOY EOY EOY EOY EOY EOY EOY EOY EOY 1 2 3 4 5 6 7 8 9 10

DRAFT REPORT: Privileged & Confidential, For Discussion Purposes Only

EAGLE LANDING 19 eaglelanding.hpapts.com FINANCIAL ANALYSIS (8,981,160) 22,768,024 esponsible for errors and omissions. pressed consent written of Hendricks-Berkadia. Security CAUTION: DRAFT REPORT: Privileged For Confidential, & Discussion Purposes Only onsidered an appraisal. Projections are forecasts and are not to be consideredfact. The ees, affiliates, and contractors are instructed to hard-code for reproduction this model and distribution. Not r -Berkadia and their clients. This file may not be reproduced-Berkadia and their clients. may or the electronic ex physically in file This without format 2,410 2,495 2,582 2,672 2,766 2,863 2,963 3,066 3,1748.15% 8.38% 3,285 8.78% 3,400 9.36% 9.95% 10.56% 11.20% 11.87% 12.57% 13.24% iscussion Purposes Only 80,95156,257 83,784 58,226 86,717 60,264 89,752 62,373 92,893 64,557 96,144 66,816 99,509 69,155 102,992 71,575 106,597 74,080 110,32814.14% 76,673 114,189 11.35% 15.05% 12.09% 79,356 16.60% 12.90% 18.86% 13.23% 21.13% 12.86% 23.51% 13.07% 26.00% 12.86% 28.60% 13.02% 31.32% 12.85% 33.91% 12.70% (98,927)(91,318) (92,231) (92,231) (86,236) (94,075) (80,748) (96,898) (75,217)(68,600)(39,200) (100,289) (69,199) (69,972)(29,400) (39,984) (103,799)(82,047) (62,669) (71,371) (29,988) (40,784) (107,432)(48,563) (83,688) (55,596)(78,400) (72,799) (30,588) (111,192) (41,599) (49,534) (85,362) (47,952) (79,968) (74,255) (115,084) (31,200) (42,431) (50,525) (87,069) (81,567) (75,740) (31,824) (39,704) (119,112) (43,280) (51,535) (88,811) (83,199) (77,255) (123,281) (32,460) (41,094) (44,146) (52,566) (90,587) (84,863) (78,800) (33,109) (45,028) (53,617) (92,399) (86,560) (80,376) (33,771) (45,929) (54,689) (94,247) (88,291) (34,447) (81,983) (55,783) (46,848) (96,132) (90,057) (83,623) (56,899) (35,136) (47,785) (91,858) (98,054) (35,838) (58,037) (100,015) (93,695) (59,198) (95,569) (304,392)(114,147) (292,064) (107,603) (282,226) (101,915) (274,543) (96,898) (284,152) (91,932) (294,098)(372,400)(191,100) (86,499) (304,391) (379,848) (194,922)(138,445) (315,045) (80,574) (387,445) (198,820)(109,500) (141,214) (326,071) (395,194) (74,128)(117,600) (202,797) (111,690) (144,038) (403,098) (117,600) (67,132) (337,484) (206,853) (113,924) (146,919) (411,160) (117,600) (349,296) (210,990) (116,202) (149,857) (69,482) (419,383) (117,600) (215,210) (118,526) (152,855) (71,914) (427,771) (117,600) (219,514) (120,897) (155,912)(184,723) (436,326) (117,600)(491,304) (223,904) (123,315) (159,030) (193,017) (117,600) (483,011) (445,052) (125,781) (162,211) (228,382) (201,683) (117,600) (474,344) (453,954) (128,297) (232,950) (210,738) (117,600) (165,455) (465,289) (130,863) (220,200) (168,764) (455,827) (117,600) (133,480) (230,086) (445,941) (117,600) (240,417) (435,610) (251,211) (424,816) (262,490) (413,537) (274,275) (401,752) 1,222,257 1,257,286 1,317,304 1,404,451 1,492,363 1,584,289 1,680,396 1,780,857 1,885,855 1,985,950 2,080,327 2,435,136 2,490,231 2,571,3942,574,754 2,680,835 2,634,736 2,791,379 2,720,957 2,906,377 2,835,633 3,026,006 2,951,595 3,150,448 3,072,200 3,279,894 3,197,633 3,328,082 3,404,617 3,463,745 3,523,778 3,594,902 3,720,724 EOY 1 EOY 2 EOY 3 EOY 4 EOY 5 EOY 6 EOY 7 EOY 8 EOY 9 EOY 10 EOY 11 (1,352,498) (1,377,450) (1,403,653) (1,431,182) (1,459,231) (1,487,911) (1,517,237) (1,547,224) (1,577,890) (1,608,952) (1,640,397) $3,043,920 $3,074,359 $3,135,846 $3,229,922 $3,342,969 $3,459,973 $3,581,072 $3,706,410 $3,836,134 $3,970,399 $4,109,362 10-YEAR CASH FLOW PROJECTION FLOW CASH 10-YEAR Eagle Landing Eagle $11,250,000 Acquisition The information contained herein is information assumed to be correctThe market-supported. and Output should produced not be c this model from Less: Loss to Lease Less: Vacancy Less: Concessions Less: Non-Rev Debt / Bad / Adjust Plus: Fee Income Plus: Income / RUBS Cable Plus: Other Income Administrative Advertising Promotion & Payroll Repairs Maintenance& / Turnkey Grounds Landscaping & FeeManagement Utilities-Electric / Gas Utilities-Water / Sewer Pest Control / Garbage EstateReal Taxes Insurance ReserveReplacement 3.00%Purchase Price Improvements Capital Reversion Proceeds Mortgages Mortgage Origination FeesPrincipal Interest (77,243) Rate Capitalization ($15,000,000) Leveraged Cash-on-Cash Return (79,042)of Sale Cash Year -All By IRR ($112,500) (81,629) (85,069) (88,548) (92,166) (95,929) (99,842) (103,912) (107,847) (111,622) Scheduled Market Rent Net Income Rental (EGI) Income TotalOperating Total Expenses Cash Flow Before DebtCash Flow After Debt Service ($15,000,000) ($3,862,500) 1,222,257 1,257,286 546,229 1,317,304 581,258 1,404,451 1,492,363 641,276 1,584,289 728,423 1,680,396 816,336 1,780,857 908,262 1,885,855 1,004,369 24,753,974 1,104,830 1,209,828 15,096,787 codes have render use and unauthorized useless. this this been included into file may file Hendricks-BerkadiaEmploy Income Operating Expenses OperatingNet Income (NOI) IMPORTANT INFORMATION & DISCLAIMER: contained is thisprivileged in file for information is use only it and confidential; Hendricks intended by Rights Reserved. 2013, All COPYRIGHT DRAFT REPORT: Privileged For Confidential, & D

EAGLE LANDING 20 eaglelanding.hpapts.com FINANCIAL ANALYSIS o be be o tten tten 27.91% 28.31% 29.56% 13.02% 30.04% 12.86% 32.11% 13.07% 32.54% 12.86% 31.16% 11.35% 12.09% 12.90% 13.23% 28.45% IRR IRR 981,160) re instructed to hard-code this model for for model this hard-code to instructed re considered an appraisal. Projections are forecasts and are not t not are and forecasts are Projections appraisal. an considered roduced physically or in electronic format without the expressed wri expressed the without format electronic in or physically roduced DRAFT REPORT: Privileged For & Confidential, Discussion Purposes Only leged & Confidential, For Discussion Purposes Only Purposes Discussion For Confidential, & leged le useless. Hendricks-Berkadia Employees, affiliates, and contractors a contractors and affiliates, Employees, Hendricks-Berkadia useless. le Eagle Landing Eagle market-supported. Output produced from this model should not be be not should model this from produced Output market-supported. by Hendricks-Berkadia and their clients. This file may not be rep be not may file This clients. their and Hendricks-Berkadia by RESIDUAL CALCULATIONS & YIELD SCHEDULE & YIELD CALCULATIONS RESIDUAL cluded into this file and unauthorized use may render this fi this render may use unauthorized and file this into cluded 8.00% 8.00% 8.00% 8.00% 8.25% 8.25% 8.50% 8.50% 8.75% 9.00% EOY 1 EOY 2 EOY 3 EOY 4 EOY 5 EOY 6EOY 1 EOY 7 EOY 2 EOY 8 EOY 3 EOY 9 EOY 4 EOY 10 EOY 5 EOY 11 EOY 6 EOY 7 EOY 8 EOY 9 EOY 10 15,480,260 16,219,010 17,292,660 18,375,175 18,915,940 20,062,480 20,636,735 21,854,195 22,356,545 22,768,275 missions. COPYRIGHT 2013, All Rights Reserved. DRAFT REPORT: Privi REPORT: DRAFT Reserved. Rights All 2013, COPYRIGHT missions. privileged and confidential; it is intended only for use use for only intended is it confidential; and privileged The information contained herein is assumed to be correct and and correct be to assumed is herein contained information The

Initial Initial (3,862,500) 546,229 581,258 641,276 728,423 816,336 908,262 1,004,369 1,104,830 1,209,828 15,773,065 32.54% (15,000,000) 1,222,257 1,257,286 1,317,304 1,404,451 1,492,363 1,584,289 1,680,396 1,780,857 1,885,855 24,754,225 13.23% Annual Residual Appreciation Residual Annual 4.8% 4.8% 6.6% 6.3% 2.9% 6.1% 2.9% 5.9% 2.3% 1.8% Gross Price/Unit Residual $40,092 $42,005 $44,786 $47,589 $48,990 $51,959 $53,446 $56,599 $57,901 $58,967 Net Capital Proceeds $4,414,983 $5,346,750 $6,622,082 $7,915,335 $8,676,300 $10,052,927 $10,867,598 $12,336,269 $13,101,110 $13,787,115 Peak ReturnPeak Period Flows: Cash and (Outstanding Debt) (11,065,277) (10,872,260) (10,670,578) (10,459,840) (10,239,640) (10,009,553) (9,769,137) (9,517,926) (9,255,435) (8, Year 10 (3,862,500) 546,229 581,258 641,276 728,423 816,336 908,262 1,004,369 1,104,830 1,209,828 15,773,065 26.60% Net Residual Year 9 (3,862,500) 546,229 581,258 641,276 728,423 816,336 908,262 1,004,369 1,104,830 14,310,938 27.01% (Selling Expense) (235,740) (246,990) (263,340) (279,825) (288,060) (305,520) (314,265) (332,805) (340,455) (346,725) Peak ReturnPeak Period Flows: Cash and Residual ValueResidual $15,716,000 $16,466,000 $17,556,000 $18,655,000 $19,204,000 $20,368,000 $20,951,000 $22,187,000 $22,697,000 $23,115,000 Year 10 (15,000,000) 1,222,257 1,257,286 1,317,304 1,404,451 1,492,363 1,584,289 1,680,396 1,780,857 1,885,855 24,754,225 12.70% Year 8 (3,862,500) 546,229 581,258 641,276 728,423 816,336 908,262 1,004,369 13,441,100 Cap Rate Year 7 (3,862,500) 546,229 581,258 641,276 728,423 816,336 908,262 11,871,967 Year 9 (15,000,000) 1,222,257 1,257,286 1,317,304 1,404,451 1,492,363 1,584,289 1,680,396 1,780,857 24,242,400 12.85% Year 6 (3,862,500) 546,229 581,258 641,276 728,423 816,336 10,961,189 Year 8 (15,000,000) 1,222,257 1,257,286 1,317,304 1,404,451 1,492,363 1,584,289 1,680,396 23,635,052 Net Operating Income $1,222,257 $1,257,286 $1,317,304 $1,404,451 $1,492,363 $1,584,289 $1,680,396 $1,780,857 $1,885,855 $1,985,950 $2,080,327 Year 5 (3,862,500) 546,229 581,258 641,276 728,423 9,492,636 Year 7 (15,000,000) 1,222,257 1,257,286 1,317,304 1,404,451 1,492,363 1,584,289 22,317,131 Year 4 (3,862,500) 546,229 581,258 641,276 8,643,759 Year 6 (15,000,000) 1,222,257 1,257,286 1,317,304 1,404,451 1,492,363 21,646,769 Year 3 (3,862,500) 546,229 581,258 7,263,359 Year 2Year 3Year 4Year 5 (15,000,000) (15,000,000) (15,000,000) (15,000,000) 1,222,257 1,222,257 17,476,296 1,222,257 1,257,286 1,222,257 1,257,286 18,609,964 1,257,286 1,317,304 1,317,304 19,779,626 1,404,451 20,408,303 Holding Period Year 1 (15,000,000)4 Years 16,702,517 Holding Period Year 1 (3,862,500)3 Years 4,961,212 Year 2 (3,862,500) 546,229 5,928,008 Residual Calculations Residual Yields Cash Yields Leveraged reproduction and distribution. Not responsible for errors and o and errors for responsible Not distribution. and reproduction considered fact. The information contained in this file is file this in contained information The fact. considered in been have codes Security CAUTION: Hendricks-Berkadia. of consent IMPORTANT INFORMATION & DISCLAIMER: & INFORMATION IMPORTANT

EAGLE LANDING 21 eaglelanding.hpapts.com FINANCIAL ANALYSIS d d to to contractors are instructed to hard-code this e considered an appraisal. Projections are forecasts and are not are Projections and forecasts appraisal. are an considered e reproduced physically or in electronic format without the expresse REPORT: Privileged & Confidential, For Discussion Purposes Only Purposes Discussion For Confidential, & Privileged REPORT: der der this file useless. Hendricks-Berkadia Employees, affiliates, and Eagle Landing Eagle d market-supported. Output produced from this model should not b not should model this from produced Output market-supported. d r use by Hendricks-Berkadia and their clients. This file may not be 10-YEAR DEBT SCHEDULE PAYMENT 10-YEAR DRAFT REPORT: Privileged & Confidential, For Discussion Purposes Only Purposes Discussion For Confidential, & Privileged REPORT: DRAFT been included into this file and unauthorized use may ren Month1 Month2 Month3 Month4 Month5 Month6 Month7 Month8 Month9 Month10 Month11 Month12 rrors and omissions. COPYRIGHT 2013, All Rights Reserved. DRAFT DRAFT Reserved. Rights All 2013, COPYRIGHT omissions. and rrors ($4,491,432) ($2,268,840) $8,981,160 is privileged and confidential; it is intended only fo The information contained herein is assumed to be correct an correct be to is assumed herein contained information The

EOY ($184,723) ($15,086)($193,017) ($15,141) ($15,196) ($15,763)($201,683) ($15,252) ($15,821) ($15,308) ($15,879) ($16,471)($210,738) ($15,364) ($15,937) ($16,531) ($15,421) ($15,995) ($16,592) ($17,210)($220,200) ($15,477) ($16,054) ($16,652) ($17,273) ($15,534) ($16,113) ($16,714) ($17,337) ($17,983)($230,086) ($15,591) ($16,172) ($16,775) ($17,400) ($18,049) ($15,648) ($16,231) ($16,836) ($17,464) ($18,115) ($18,790)($240,417) ($15,705) ($16,291) ($16,898) ($17,528) ($18,181) ($18,859) ($16,351) ($16,960) ($17,592) ($18,248) ($18,928) ($19,634)($251,211) ($16,410) ($17,022) ($17,657) ($18,315) ($18,998) ($19,706) ($17,085) ($17,722) ($18,382) ($19,067) ($19,778) ($20,515)($262,490) ($17,147) ($17,786) ($18,450) ($19,137) ($19,851) ($20,591) ($17,852) ($18,517) ($19,207) ($19,923) ($20,666) ($21,437)($274,275) ($17,917) ($18,585) ($19,278) ($19,997) ($20,742) ($21,515) ($18,653) ($19,349) ($20,070) ($20,818) ($21,594) ($22,399) ($18,722) ($19,420) ($20,143) ($20,894) ($21,673) ($22,481) ($19,491) ($20,217) ($20,971) ($21,753) ($22,564) ($19,562) ($20,291) ($21,048) ($21,832) ($22,646) ($20,366) ($21,125) ($21,912) ($22,729) ($20,440) ($21,202) ($21,993) ($22,813) ($21,280) ($22,073) ($22,896) ($21,358) ($22,154) ($22,980) ($22,236) ($23,065) ($22,317) ($23,149) ($23,234) ($23,319) Total Interest: Total Principal: Balance: Loan Balance:Interest:Principal: Balance:Interest:Principal: ($491,304)Balance:Interest: ($41,250)Principal: ($483,011) $11,250,000 ($41,195) $11,234,914Balance: $11,219,773Interest: ($41,139) ($40,573)Principal: $11,204,577 ($474,344) $11,189,325 $11,065,277 ($41,083) ($40,515) $11,174,017 $11,049,514Balance: $11,158,653 $11,033,693Interest: ($41,028) ($40,457) $11,143,232 ($39,865)Principal: $11,017,815 ($465,289) $11,127,755 $11,001,878 ($40,971) $10,872,260 ($40,399) $11,112,221 ($39,805) $10,985,882 $10,855,790Balance: $11,096,630 $10,969,828 ($40,915) $10,839,259Interest: ($40,340) $11,080,982 ($39,744) $10,953,715 ($39,125)Principal: $10,822,667 ($455,827) $10,937,543 ($40,859) $10,806,015 ($40,282) $10,670,578 ($39,683) $10,921,312 ($39,062) $10,789,301 $10,653,367Balance: $10,905,021 ($40,802) $10,772,526 ($40,223) $10,636,094Interest: ($39,622) $10,888,671 ($38,999) $10,755,690 ($38,353)Principal: $10,618,758 ($445,941) ($40,745) $10,738,792 ($40,164) $10,601,357 ($39,561) $10,459,840 ($38,935) $10,721,832 ($38,287) $10,583,893 $10,441,857 ($40,688)Balance: $10,704,810 ($40,104) $10,566,365 ($39,499) $10,423,808Interest: ($38,872) $10,687,725 ($38,221) $10,548,773 ($37,545)Principal: $10,405,693 ($435,610) ($40,630) ($40,045) $10,531,116 ($39,438) $10,387,512 ($38,808) $10,239,640 ($38,154) $10,513,395 ($37,476) $10,369,264 $10,220,850 ($39,985)Balance: $10,495,608 ($39,376) $10,350,949 ($38,743) $10,201,990Interest: ($38,088) $10,477,757 ($37,407) $10,332,566 ($36,702)Principal: $10,183,062 ($424,816) ($39,925) ($39,313) $10,314,117 ($38,679) $10,164,064 ($38,021) $10,009,553 ($37,338) $10,295,600 ($36,630) $10,144,997 ($39,251)Balance: $10,277,015 $9,989,920 ($38,614) $10,125,860 ($37,953)Interest: ($37,268) $10,258,361 ($36,557) $10,106,652 $9,970,214 ($35,820)Principal: ($413,537) ($39,188) ($38,549) $10,087,374 ($37,886) ($37,198) $9,950,436 ($36,485) $10,068,026 $9,769,137 ($35,745) ($38,484) $9,930,585 $10,048,606 ($37,818) ($37,128) $9,748,621 ($36,412) $10,029,116 ($35,669) $9,910,661 ($34,899) ($401,752) ($38,418) $9,728,031 ($37,751) ($37,058) ($36,339) $9,890,665 ($35,594) $9,707,364 $9,517,926 ($34,820) ($37,682) $9,870,595 ($36,987) $9,686,622 ($36,266) $9,496,489 ($35,518) ($34,742) $9,850,452 ($33,937) ($37,614) $9,665,804 $9,474,974 ($36,916) ($36,192) ($35,441) $9,830,234 ($34,662) $9,644,910 $9,453,380 $9,255,435 ($33,854) ($36,845) $9,809,943 ($36,118) $9,623,939 $9,431,707 ($35,365) $9,233,036 ($34,583) ($33,772) $9,789,577 ($36,773) $9,602,891 $9,409,954 $9,210,555 ($36,044) ($35,288) ($34,503) ($33,689) $9,581,766 $9,388,121 $9,187,992 ($35,970) ($35,211) $9,560,564 $9,366,209 $9,165,345 ($34,423) ($33,606) ($35,895) $9,539,284 $9,344,216 $9,142,616 ($35,133) ($34,343) ($33,523) $9,322,143 $9,119,803 ($35,055) ($34,262) $9,299,988 $9,096,907 ($33,439) ($34,977) $9,277,753 $9,073,927 ($34,181) ($33,355) $9,050,862 ($34,100) ($33,271) $9,027,713 ($34,018) $9,004,479 ($33,186) ($33,102) ($33,016) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year Year 10 Year IMPORTANT INFORMATION & DISCLAIMER: & INFORMATION IMPORTANT be be considered fact. The information contained in this file written consent of Hendricks-Berkadia. CAUTION: Security codes have model for reproduction and distribution. Not responsible for e for responsible Not distribution. and reproduction for model

EAGLE LANDING 22 eaglelanding.hpapts.com NOTES TO PRO FORMA

INCOME ASSUMPTIONS

. Scheduled Market Rent: Scheduled Market Rents total $3,043,920 annually or $0.65/SF. We project rental increases of 1% beginning Year Two and moving to 3.5% beginning Year Five annually for the entirety of this analysis based on submarket averages and historical performance.

. Loss to Lease: Loss-to-Lease is defined as the difference between current market rent and actual contract rent per the leases. We project 3.25% Year One for Loss-to-Lease and trend this figure down by .25% per year to 1% by Year Ten of this analysis.

. Vacancy / Occupancy: Situated in Montgomery County, Eagle Landing is located within the Eastern submarket of Montgomery. The property is currently 86% occupied and leased to 95%. We project 10% vacancy Year One and decrease this figure to 8.5% by Year Four, where it stabilizes for remainder of this analysis.

. Concessions: We project 3.75% for Concessions Year One and trend this number down by .25% per year to 1.75% in Year Nine where it remains for the entirety of this analysis. This is less than historical figures, but in line with submarket averages.

. Non-Rev Units / Bad Debt / Adjustments: This line item includes Employee Units, Bad Debt Allowance, and Bad Debt Rec from Collections. We project 3% for these line items and maintain this figure for the entirety of this analysis.

Current management accounts for Bad Debt in a more conservative way than typical operators in order to more accurately project Bad Debt figures and avoid unexpected impact to cash flow. Bad Debt is traditionally accounted for in the current month. The present operator combines Bad Debt for the current month with estimated uncollectable rent in future months and moves these losses to the balance sheet. Future losses are calculated based on the following parameters: 100% of unpaid balances for eviction units and 50% of unpaid balances for residents that are one month or more behind on their rent. Though the Bad Debt Allowance line item shows $20,001 for May 2013, this value includes projected potential Bad Debt. The actual Bad Debt for May 2013 was $7,825.

. Fee Income: Fee income includes Application Fees, Pet Fee Income, Lease Termination Fees, Late Fees, NSF Fees, Legal Fees, and Damages & Cleaning Fees on the P&L. We have projected Fee income at $80,951 Year One. This figure 3% over the T12 and in line with market averages.

. RUBS / Cable Income: RUBS/Cable Income includes the Water Reimbursement line item on the P&L and we have projected $2,410 for Year One. This figure is 3% over the T12 and reasonable considering the existing operations and the increase in current occupancy. RUBS was implemented in a small number of units until the rents were stabilized, full roll out of the RUBS program is planned for the near future.

. Other Income: Other income includes Washer / Dryer Rental, Interest Income, Pet Rent, Forfeited Security Deposits, Lock Change, MTM Income, Cable Commission, and Other Income on the P&L. We have projected Other Income at $56,257 for Year One. This is 3% over the T12 and in line with market averages.

. Total Income: Total projected operating income Year One is $2,574,754. With recent capital improvements and attractive floor plans, Eagle Landing will continue to experience strong demand in its submarket.

EXPENSE ASSUMPTIONS

. Administrative: Administrative expenses include Total Administrative Expenses minus Advertising, Payroll, and Management Items on P&L. We project $175/unit/year based on market averages or $68,600 annually.

. Advertising & Promotion: We assumed $100/unit or $39,200 per year for this line item.

EAGLE LANDING 23 eaglelanding.hpapts.com NOTES TO PRO FORMA

EXPENSE ASSUMPTIONS (CONTINUED)

. Payroll: Payroll includes Office Salaries, Employee Benefits, Maintenance Salaries, Payroll Taxes, Workers Compensation, and Employee Insurance on the P&L. We project Year One Payroll of $950/unit/year, or $372,400 annually, which is consistent with market averages for a property this size.

. Repairs & Maintenance / Turnkey: This includes Total Repairs & Maintenance minus landscaping supplies/repairs/contracts, Total Turnover Costs, and Fire Alarm/Sprinkler line items on the P&L. We project $325/unit/year for repair and maintenance given the vintage and recent improvement at the property. We project the cost for paint, punch, and cleaning to be $325/unit based on average unit size. Using a 50% turnover rate, we calculate the total for Repair & Maintenance / Turnkey to be $488/unit/year ($325 + (50% X $325)). This totals $191,000 annually which is in line with market averages.

. Grounds & Landscaping: This includes the Grounds Supplies and Grounds Contracts category on the P&L. We project $75/unit or $29,400/year.

. Management Fee: We assume a management fee of 3%, which is $197/unit/year, or $77,243 Year One, consistent with similar properties of this size and bracket of revenue.

. Utilities – Electric: We project $209/unit/year for Electric or $82,047 annually. This is lower than historical figures as Vacant Electric was unusually high due to past vacancy and recent capital improvements.

. Utilities – Water & Sewer: We calculate $353/unit/year or $138,445 annually for Water and Sewer, which is 3% over the trailing-twelve figure.

. Pest Control / Garbage: This line item includes the Exterminating Contract as well as the Garbage and Trash Removal line items on the P&L. We project $48,563/year, or $124/unit/year, which is in line with historical averages.

. Real Estate Taxes: Eagle Landing is located in Montgomery County and is subject to its taxing authority. We projected taxes Year One as if they were re-assessed at the suggested purchase price. Owners do have a right to appeal the tax assessor’s valuations each year. However, we strongly recommend consulting a tax professional regarding this line item.

Real estate taxes were estimated as follows: Purchase Price $15,000,000 X 20% X .0365 Millage Rate

. Insurance: We projected $200/unit/year or $78,400 annually in our analysis Year One for insurance figures at Eagle Landing.

. Replacement Reserves: We assumed $300/unit for replacement reserves, or $117,600/year.

Net Operating Income (NOI): Projected FY1 Net Operating Income, after replacement reserves, is $1,222,257.

PRICING AND FINANCING OPTIONS

For purposes of this analysis, we have assumed a Purchase Price of $15,000,000, All Cash with purchaser placing new debt under the following assumptions: . 75% LTV or $11,250,000 . Fixed Rate of 4.4% on a 10-Year Term . 30-Year Amortization . It is likely an investor could obtain 12 months of interest only; however, we did not make this assumption. . 1% of Fees

EAGLE LANDING 24 eaglelanding.hpapts.com COMPARABLE RENTAL PROPERTIES

1. Foxcroft Units Built Occupancy 5701 Calmar Drive 132 1972 94% Montgomery, AL 36116

Type SF Asking Rent Rent / SF 1/1.00 720 $460 $0.64 2/1.00 975 $525 $0.54 2/2.00 1,015 $550 $0.54 3/2.00 1,270 $650 $0.51 Weighted 960 $ 531 $0.55 Avg.

2. Fox Run Units Built Occupancy 5601 Calmar Drive 125 1969 90% Montgomery, AL 36116

Units Type SF Asking Rent Rent / SF 1 0/1.00 800 $499 $0.62 24 1/1.00 902 $499 $0.55 24 2/1.50 1,150 $649 $0.56 28 2/2.00 1,050 $579 $0.55 20 2/2.00 1,075 $599 $0.56 28 3/2.00 1,400 $699 $0.50 125 Weighted 1,121 $ 607 $0.54 Avg.

3. The Belmont Units Built Occupancy 3580 McGehee Place 467 1987 91% Drive South Montgomery, AL 36111 Units Type SF Asking Rent Rent / SF 120 1/1.00 673 $610 $0.91 68 1/1.00 753 $625 $0.83 152 2/2.00 900 $655 $0.73 104 2/2.00 1,076 $710 $0.66 23 3/2.00 1,200 $850 $0.71 467 Weighted 874 $ 661 $0.76 Avg.

EAGLE LANDING 25 eaglelanding.hpapts.com COMPARABLE RENTAL PROPERTIES

4. Arbor Station Units Built Occupancy 2495 Meadow Ridge Lane 288 1988 96% Montgomery, AL 36117

Units Type SF Asking Rent Rent / SF 112 1/1.00 935 $635 $0.68 152 2/2.00 1,205 $740 $0.61 24 3/2.00 1,475 $865 $0.59 288 Weighted 1,123 $ 710 $0.63 Avg.

5. Stratford Village Units Built Occupancy 2000 London Town Lane 224 1986 92% Montgomery, AL 36117

Units Type SF Asking Rent Rent / SF 68 1/1.00 700 $569 $0.81 24 1/1.00 725 $540 $0.74 68 2/2.00 1,050 $659 $0.63 32 2/2.00 1,075 $698 $0.65 32 3/2.00 1,200 $792 $0.66 224 Weighted 934 $ 644 $0.69 Avg.

6. Village Green Units Built Occupancy 101 South Burbanks Drive 337 1972 91% Montgomery, AL 36117

Units Type SF Asking Rent Rent / SF 104 1/1.00 750 $535 $0.71 144 2/2.00 950 $615 $0.65 89 3/2.00 1,250 $705 $0.56 337 Weighted 968 $ 614 $0.63 Avg.

EAGLE LANDING 26 eaglelanding.hpapts.com COMPARABLE RENTAL PROPERTIES

7. Woodmere at the Lake Units Built Occupancy 1421 Stonehenge Place 200 1977 78% Montgomery, AL 36117

Units Type SF Asking Rent Rent / SF 96 1/1.00 698 $520 $0.74 72 2/1.00 898 $590 $0.66 32 3/1.50 1,100 $720 $0.65 200 Weighted 834 $ 577 $0.69 Avg.

8. Zelda Pointe Units Built Occupancy 2845 Zelda Road 160 1989 94% Montgomery, AL 36106

Units Type SF Asking Rent Rent / SF 32 1/1.00 667 $654 $0.98 128 2/2.00 1,013 $754 $0.74 160 Weighted 944 $ 734 $0.78 Avg.

9. Park Place Units Built Occupancy 6121 Eden East Drive 200 1978 90% Montgomery, AL 36117

Units Type SF Asking Rent Rent / SF 56 1/1.00 600 $550 $0.92 48 1/1.00 700 $590 $0.84 40 2/1.00 900 $705 $0.78 56 3/2.00 1,155 $780 $0.68 200 Weighted 839 $ 655 $0.78 Avg.

EAGLE LANDING 27 eaglelanding.hpapts.com COMPARABLE RENTAL PROPERTIES

S. Eagle Landing Units Built Occupancy 5800 Eagle Circle 392 1986 86% Montgomery, AL 36116

Units Type SF Asking Rent Rent / SF 44 1/1.00 800 $580 $0.73 27 1/1.00 800 $589 $0.74 1 1/1.00 800 $615 $0.77 65 2/2.00 1,000 $639 $0.64 194 2/2.00 1,000 $640 $0.64 5 2/2.00 1,000 $699 $0.70 38 3/2.00 1,200 $750 $0.63 15 3/2.00 1,200 $769 $0.64 3 3/2.00 1,200 $799 $0.67 392 Weighted 992 $ 647 $0.65 Avg.

EAGLE LANDING 28 eaglelanding.hpapts.com COMPARABLE RENTAL PROPERTIES

S. Eagle Landing 5800 Eagle Circle Montgomery AL

1. Foxcroft 5701 Calmar Drive Montgomery AL 2. Fox Run 5601 Calmar Drive Montgomery AL 3. The Belmont 3580 McGehee Place Drive South Montgomery AL 4. Arbor Station 2495 Meadow Ridge Lane Montgomery AL 5. Stratford Village 2000 London Town Lane Montgomery AL 6. Village Green 101 South Burbanks Drive Montgomery AL 7. Woodmere at the Lake 1421 Stonehenge Place Montgomery AL 8. Zelda Pointe 2845 Zelda Road Montgomery AL 9. Park Place 6121 Eden East Drive Montgomery AL

EAGLE LANDING 29 eaglelanding.hpapts.com COMPARABLE SALE PROPERTIES

PROPERTY INFORMATION SALES DATA Property Units Built Rentable SF Price Price/Unit Price/SF Sale Date The Belmont 467 1987 392,104 $18,350,000 $39,293 $46.80 10/12 1. 3580 McGehee Place Drive South Montgomery, AL 36111

Halcyon Park 2. 112 1990 108,800 $7,100,000 $63,393 $65.26 5/12 7880 Taylor Park Road Montgomery, AL 36117

Magnolia Terrace 3. 176 1986 155,704 $11,600,000 $65,909 $74.50 6/09 155 Sylvest Drive Montgomery, AL 36117

Peppertree 4. 208 1997 198,400 $16,250,000 $78,125 $81.91 5/12 8201 Vaughn Road Montgomery, AL 36116

The Ashton 520 1973 413,380 $23,200,000 $44,615 $56.12 2/09 5. 5600 Carmichael Road Montgomery, AL 36117

Zelda Pointe 160 1989 151,008 $9,150,000 $57,188 $60.59 1/09 6. 2845 Zelda Road Montgomery, AL 36106

Summerchase 7. 152 1987 135,317 $8,525,000 $56,086 $63.00 7/09 100 McQueen Smith Road Prattville, AL 36066

Hillwood 8. 118 1981 167,480 $6,720,000 $56,949 $40.12 7/13 1 Gatsby Drive Montgomery, AL 36106

Averages $57,695 $61.04

S. Eagle Landing 392 1986 388,800 $15,000,000 $38,265 $38.58 5800 Eagle Circle Montgomery, AL 36116

EAGLE LANDING 30 eaglelanding.hpapts.com COMPARABLE SALE PROPERTIES

S. Eagle Landing 5800 Eagle Circle Montgomery AL

1. The Belmont 3580 McGehee Place Drive South Montgomery AL 2. Halcyon Park 7880 Taylor Park Road Montgomery AL 3. Magnolia Terrace 155 Sylvest Drive Montgomery AL 4. Peppertree 8201 Vaughn Road Montgomery AL 5. The Ashton 5600 Carmichael Road Montgomery AL 6. Zelda Pointe 2845 Zelda Road Montgomery AL 7. Summerchase 100 McQueen Smith Road Prattville AL 8. Hillwood 1 Gatsby Drive Montgomery AL

EAGLE LANDING 31 eaglelanding.hpapts.com ECONOMIC & DEMOGRAPHIC PROFILE

INTRODUCTION HISTORIC POPULATION MONTGOMERY, AL MSA The capital of Alabama, Montgomery is located just 425,000 southeast of the center of the state, 94 miles from Birmingham and 162 miles from Atlanta. The city of 400,000 Montgomery is the second-largest in Alabama and is the 375,000 primary city of the Montgomery Metropolitan Statistical Area, 350,000 which consists of Autauga, Elmore, Lowndes, and Montgomery counties. 325,000

300,000 397,969 383,358 374,536

275,000 346,528

250,000 305,175 1990 2000 2010 2013 2018* *PROJECTED

According to the Montgomery Metropolitan Planning Association, Autauga, Elmore, and Montgomery counties Montgomery has a significant military presence as the home combined will add more than 57,000 new households over of Maxwell-Gunter Air Force Base; the city is also home to the 30-year period ended in 2035. numerous colleges and universities. High-tech manufacturers

are also located in the area, such as Hyundai Motor HOUSING Manufacturing, which has expanded its local plant, resulting According to the 2010 Census, the Montgomery MSA in the creation of more than 3,000 jobs, including the recent contained 161,573 housing units, with 67.1% owner creation of 877 new positions with the addition of a third occupied and 32.9% renter occupied. shift at the plant.

In April of 2013, the median home price in the Montgomery MSA was $121,000, down 5.7% from a year prior.

Multifamily permits (including both rental and for-sale units) have fluctuated over the past few years in the Montgomery MSA. A total of 702 units were permitted in 2007, declining to merely eight units in 2008, remaining subdued at 30 units the following year. In 2010, permits soared to 465 units, while 174 units were permitted in 2011. Permits climbed to 474 units in 2012, their highest level since 2007, but are projected to moderate to 125 units in 2013.

MULTIFAMILY PERMITS MONTGOMERY MSA

2013* 125 2012 474 2011 POPULATION 174 2010 465 From 1990 to 2013, the population of the Montgomery MSA rose from 305,175 to 383,358, an increase of 25.6%. By 2009 30 2018, the area’s population is projected to rise to 397,969, 2008 8 up by an annual average of 0.75% over the next five years, compared to 0.68% nationally. 2007 702 0 200 400 600 800 The median age for the metro area is 36.2 years, with 21.3% *PROJECTED of residents within the key renter demographic of 20 to 34 years of age, slightly above the national share of 20.6%. For fiscal year 2013, fair market rents, as defined by the U.S. Department of Housing & Urban Development (HUD) ranged

EAGLE LANDING 32 eaglelanding.hpapts.com ECONOMIC & DEMOGRAPHIC PROFILE

from $629 for efficiency units to $1,291 for four-bedroom employs 472 people, with plans for future expansions. Lear units in the Montgomery MSA. Compared to five years Corp. added nearly 100 new jobs in 2012, bringing its total earlier, fair market rents have risen by a range of 11.7% to local employment to 335. 26.8%, depending on unit type. New Medical School – In May of 2014, a new regional MONTGOMERY MSA medical school will open in Montgomery as part of the FAIR MARKET RENTS University of Alabama-Birmingham Health System. The medical school will start with 10 students, rising to 40 by FY 2013 FY 2008 CHANGE 2016. The school will be located at the Montgomery Efficiency $629 $496 26.8% Cardiovascular Institute at Baptist Medical Center South. One-Bedroom $665 $586 13.5% Two-Bedroom $790 $660 19.7% Interstate 85 Extension – The proposed $500 million Three-Bedroom $1,086 $875 24.1% extension of I-85 will connect I-65 in South Montgomery to I- Four-Bedroom $1,291 $1,156 11.7% 85 near the Waugh exit, thus alleviating congestion on I-85

Source: U.S. Department of Housing and Urban Development through the central city. The roadway is in heavy usage as it is used by Hyundai to deliver engines to the Kia Motors ECONOMIC DEVELOPMENT / NEW CONSTRUCTION Manufacturing facility in West Point, Georgia. Work on phase I, dubbed the Montgomery Outer Loop, is underway, Hyundai Heavy Industries – This firm opened its first North with the $150 million project running 3.4 miles, from American plant in Montgomery at Interstate Industrial Park in Vaughn Road to I-85; estimated completion: 2014. This late 2011; the site produces 500-ton power transformers. project will create an estimated 3,500 to 4,000 jobs during The $108 million plant created 480 jobs. construction. Also planned is a $120 million project that will extend I-85 for nine miles, linking Vaughn Road to Carter Hill Road, then Carter Hill Road to US 231.

Park Crossing – This two-mile roadway, linking from Taylor Road to Ray Thorington Road in Montgomery opened in 2012. The city expects that the road will open up 4,000 acres of new land for development, with projections calling for the area to accommodate 11,880 housing units and 27,300 residents at build-out.

VA Clinic – A new 112,000-square-foot outpatient VA clinic in eastern Montgomery, on Chantilly Parkway, was announced in 2011; the clinic will create 300 jobs at Hyundai Motor Manufacturing – A $173 million expansion of completion. Estimated completion: first quarter of 2014. the company’s Montgomery plant was completed in 2012, creating 214 jobs. In September of 2012, Hyundai added a Questplex – Expected to support economic development and third shift at the plant, creating 877 additional jobs. This visitor activity downtown, this $20 million revamp of the One brought the total jobs created by the plant to more than Court Square building will entail the development of a new 3,000. county-city public library and a new home for the Children’s Museum of Alabama. The 175,000-square-foot building DAS North America – A supplier to Hyundai and Kia, DAS could reopen in 2015. North America announced in is building a $37 million manufacturing site in Montgomery. DAS currently employs STERIS Corp. – This firm announced in 2012 that it will invest about 100 people at a temporary manufacturing site while it more than $11 million to expand in Montgomery’s Gunter builds its 300,000-square-foot facility at the Montgomery Industrial Park. The medical manufacturer plans to add 80 Industrial Park. The company plans to employ 400 people by jobs as part of the expansion, bringing its total local 2018, as announced in June of 2013. employment to 350.

Other Hyundai Supplier Expansions – In recent years, ECONOMY / EMPLOYMENT Hyundai suppliers have expanded in tandem with the Key industries in the Montgomery area include automotive company’s plant. For example, MOBIS Alabama has manufacturing, fabricated metals, plastics, warehousing / invested $108.6 million and created 572 jobs from 2010- distribution, and state / regional government. 2012, while GLOVIS Alabama invested $20 million and now

EAGLE LANDING 33 eaglelanding.hpapts.com ECONOMIC & DEMOGRAPHIC PROFILE

Maxwell Gunter Air Force Base is the area’s largest Hyundai Motors Manufacturing opened its Montgomery plant employer, with 12,280 personnel. The base is home to the in 2005; the plant now produces the Elantra and Sonata 42nd Air Base Wing, along with the 908th Airlift Wing, the models. Following recent expansions, the company now 754th Electronic Systems Group, and more than 30 tenant employs more than 3,000 people locally. units. Air University is headquartered at the base; it is the Air Force’s center for professional education. Other employers with a significant presence in the area include Koch Foods, Regions Bank, US Food Service, Webster Industries, Big Lots Stores, Russell Brands, Neptune Technology Group, and Creek Casinos.

Major retail centers include Eastdale Mall, located at Eastern Boulevard and Highway 80, with 964,717 square feet of space. The Shoppes at EastChase is an upscale lifestyle center that totals 407,419 square feet. The neighboring EastChase Plaza boasts 325,000 square feet of space.

Alabama State University plays a major role in the local economy, with an annual economic impact of $885 million, supporting 9,714 local jobs both directly and indirectly.

The State of Alabama is the area’s second leading More than 46% of employed Montgomery MSA residents employer, accounting for 9,500 local jobs. work in the services sector, followed by 11.6% in retail trade and 11.0% in public administration. Nearly 63% of employed metro area residents are employed in white-collar positions.

EMPLOYMENT BY INDUSTRY MONTGOMERY, AL MSA

15.5% Services Retail Trade 7.5% Public Administration 46.4% Manufacturing 8.0% F.I.R.E. Other 11.0% 11.6% LARGEST EMPLOYERS MONTGOMERY,AL MSA Maxwell-Gunter Air Force Base 12,280 State of Alabama 9,500 Montgomery Public Schools 4,524 Baptist Health Systems 4,300 Hyundai Motor Manufacturing Alabama 3,100 Alfa Insurance Companies 2,568 City of Montgomery 2,500 Jackson Hospital & Clinic, Inc. 1,300 MOBIS Alabama, LLC 1,221 Rheem Water Heaters 1,173 GKN Aerospace 1,000 Source: Montgomery Chamber of Commerce, 2013 Over the year ended in April of 2013, the Montgomery MSA recorded an employment gain of 1.3%, equating to the addition of 2,100 jobs. This marked the metro area’s

EAGLE LANDING 34 eaglelanding.hpapts.com ECONOMIC & DEMOGRAPHIC PROFILE

strongest employment growth rate for any April since 2007. EDUCATION According to Moody’s, employment growth in Montgomery The Montgomery County Schools system operates 46 will rise to 2.7% in 2014 as a net total of 4,600 jobs are elementary, 19 middle, five junior high, and 12 senior high added to local payrolls. schools. The system enrolls nearly 32,000 students. Numerous private schools are also located in the area. The local unemployment rate was 7.5% in 2012, the lowest rate for any year since 2008. This rate was below the Nearly 26,000 students attend local institutions of higher national figure (8.1%) for 2012. Local unemployment is learning, serving as demand generators for apartments. The forecasted to decline to 6.8% in 2013. largest schools include Alabama State University, where 55% of students live off campus, and Auburn University at ANNUAL UNEMPLOYMENT RATES Montgomery, with 88% of students living off campus. MONTGOMERY, AL MSA

2013* 6.8% Alabama State opened its new $62 million, 26,000-seat 7.5% football stadium in November of 2012. The stadium design 2011 8.8% allows for a future expansion to 55,000 seats; it is part of a 8.9% $600 million, 30-year plan to modernize and upgrade the 2009 9.3% 5.1% campus, with completion estimated for 2035. 2007 3.4% 3.4% 2005 3.7% 4.9% 2003 5.1% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% *PROJECTED

According to the Montgomery Metropolitan Planning Association, Autauga, Elmore, and Montgomery counties combined will add approximately 96,000 jobs from 2005 to 2035.

INCOME The median household income in the Montgomery MSA rose from $26,235 in 1990 to $45,746 in 2013, equating to an increase of 74.4%. By 2018, this figure is expected to COLLEGES & UNIVERSITIES advance to $52,974, up about 16% from 2013. This MONTGOMERY, AL MSA increase will surpass the projected national gain of 13.4% for Alabama State University 5,425 this period. Auburn University at Montgomery 5,305 Troy State University at Montgomery 4,312 MEDIAN HOUSEHOLD INCOME Faulkner University 3,143 MONTGOMERY, AL MSA Tuskegee University 2,994 $60,000 Trenholm State Technical College 1,758 Huntingdon College 1,075 $50,000 South University - Montgomery 661 Ingram State Technical College 543 $40,000

$30,000 TRANSPORTATION

$52,974 Montgomery is served by Interstate 65 and I-85, along with $20,000 $45,746

$37,222 federal highways 231, 31, 331, 80, and 82. Public transit is

$26,235 provided by the Montgomery Area Transit System (MATS), $10,000 which operates buses throughout the area. 1990 2000 2013 2018* *PROJECTED Dannelly Field offers 17 daily flights from Delta Connection / ASA, American Eagle, and US Airways Express, linking to Atlanta, Dallas, Charlotte, and Memphis.

EAGLE LANDING 35 eaglelanding.hpapts.com ECONOMIC & DEMOGRAPHIC PROFILE

TOURISM & RECREATION

Major attractions in the Montgomery area include the following:

» Alabama Shakespeare Festival » Rosa Parks Museum » Civil Rights Memorial » Montgomery Biscuits (baseball) » Navistar LPGA Classic » Hank Williams Museum » Montgomery Museum of Fine Arts » Montgomery Zoo » Montgomery Symphony » Montgomery Ballet » F. Scott & Zelda Fitzgerald Museum

Sources Hendricks-Berkadia Research Services; ESRI; Bureau of Labor Statistics; U.S. Census Bureau; Economic Development Partnership of Alabama; Wikipedia; Alabama Center for Real Estate; Montgomery Advertiser; AL.com; Montgomery Business Journal; Montgomery Area Chamber of Commerce; Birmingham Business Journal; Maxwell-Gunter AFB; Eastdale Mall; Bayer Properties; Peterson’s; Universities.com; 50States.com; Montgomery Metropolitan Planning Organization; WSFA

EAGLE LANDING 36 eaglelanding.hpapts.com DEMOGRAPHICS

Site Map

Eagle Landing 5800 Eagle Cir, Montgomery, AL, 36116 Latitude: 32.3253 Ring: 1, 3, 5 Miles Longitude: -86.2288

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EAGLE LANDING 37 eaglelanding.hpapts.com DEMOGRAPHICS

Market Profile

Eagle Landing 5800 Eagle Cir, Montgomery, AL, 36116 Latitude: 32.3253 Ring: 1 mile radius Longitude: -86.2288 1 mile 3 miles 5 miles Population Summary 2000 Total Population 9,115 55,217 122,124 2010 Total Population 9,759 61,490 131,028 2012 Total Population 9,813 62,498 132,330 2012 Group Quarters 68 253 3,270 2017 Total Population 9,997 64,897 136,106 2012-2017 Annual Rate 0.37% 0.76% 0.56% Household Summary 2000 Households 3,880 23,035 50,053 2000 Average Household Size 2.32 2.38 2.37 2010 Households 3,884 25,264 53,382 2010 Average Household Size 2.50 2.42 2.39 2012 Households 3,890 25,658 53,901 2012 Average Household Size 2.51 2.43 2.39 2017 Households 3,961 26,655 55,531 2017 Average Household Size 2.51 2.43 2.39 2012-2017 Annual Rate 0.36% 0.77% 0.60% 2010 Families 2,452 15,692 33,177 2010 Average Family Size 3.09 3.07 3.04 2012 Families 2,433 15,792 33,222 2012 Average Family Size 3.10 3.07 3.04 2017 Families 2,458 16,275 34,002 2017 Average Family Size 3.11 3.08 3.05 2012-2017 Annual Rate 0.20% 0.60% 0.46% Housing Unit Summary 2000 Housing Units 4,271 24,955 54,263 Owner Occupied Housing Units 30.8% 53.7% 57.3% Renter Occupied Housing Units 60.0% 38.6% 34.9% Vacant Housing Units 9.2% 7.7% 7.8% 2010 Housing Units 4,535 28,387 59,700 Owner Occupied Housing Units 27.4% 47.3% 52.1% Renter Occupied Housing Units 58.2% 41.7% 37.3% Vacant Housing Units 14.4% 11.0% 10.6% 2012 Housing Units 4,510 28,662 60,168 Owner Occupied Housing Units 27.6% 47.6% 52.5% Renter Occupied Housing Units 58.7% 42.0% 37.1% Vacant Housing Units 13.7% 10.5% 10.4% 2017 Housing Units 4,532 29,471 61,599 Owner Occupied Housing Units 27.6% 48.1% 53.2% Renter Occupied Housing Units 59.8% 42.3% 37.0% Vacant Housing Units 12.6% 9.6% 9.9% Median Household Income 2012 $32,198 $47,345 $47,259 2017 $35,839 $53,166 $53,673 Median Home Value 2012 $133,749 $149,454 $147,083 2017 $140,480 $160,964 $159,567 Per Capita Income 2012 $18,283 $27,064 $28,094 2017 $19,857 $29,699 $31,219 Median Age 2010 25.9 31.6 33.6 2012 26.0 31.7 33.7 2017 26.3 32.1 34.3

Data Note: Household population includes persons not residing in group quarters. Average Household Size is the household population divided by total households. Persons in families include the householder and persons related to the householder by birth, marriage, or adoption. Per Capita Income represents the income received by all persons aged 15 years and over divided by the total population. Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2012 and 2017. Esri converted Census 2000 data into 2010 geography. June 14, 2013 Made with Esri Business Analyst ©2013 Esri www.esri.com/ba 800-447-9778 Try it Now! Page 1 of 5

EAGLE LANDING 38 eaglelanding.hpapts.com DEMOGRAPHICS

Market Profile

Eagle Landing 5800 Eagle Cir, Montgomery, AL, 36116 Latitude: 32.3253 Ring: 5 mile radius Longitude: -86.2288 1 mile 3 miles 5 miles 2012 Households by Income Household Income Base 3,890 25,658 53,901 <$15,000 19.3% 12.2% 13.0% $15,000 - $24,999 19.7% 12.2% 11.8% $25,000 - $34,999 14.1% 11.1% 11.0% $35,000 - $49,999 17.0% 16.7% 16.5% $50,000 - $74,999 13.1% 18.3% 17.1% $75,000 - $99,999 8.3% 12.4% 12.3% $100,000 - $149,999 5.9% 10.3% 10.7% $150,000 - $199,999 0.7% 3.3% 3.7% $200,000+ 1.9% 3.4% 3.9% Average Household Income $46,622 $65,174 $66,927 2017 Households by Income Household Income Base 3,961 26,655 55,531 <$15,000 20.0% 11.7% 12.4% $15,000 - $24,999 16.2% 9.5% 9.0% $25,000 - $34,999 12.4% 9.4% 9.2% $35,000 - $49,999 16.8% 15.2% 15.1% $50,000 - $74,999 16.0% 22.0% 20.2% $75,000 - $99,999 9.4% 13.9% 13.6% $100,000 - $149,999 6.3% 11.1% 12.1% $150,000 - $199,999 0.8% 3.7% 4.3% $200,000+ 2.0% 3.5% 4.1% Average Household Income $50,703 $71,516 $74,466 2012 Owner Occupied Housing Units by Value Total 1,243 13,622 31,583 <$50,000 1.0% 1.0% 1.7% $50,000 - $99,999 23.7% 18.1% 20.6% $100,000 - $149,999 37.6% 31.2% 29.3% $150,000 - $199,999 22.6% 22.0% 18.3% $200,000 - $249,999 10.8% 11.6% 10.1% $250,000 - $299,999 2.7% 5.7% 5.7% $300,000 - $399,999 1.6% 5.2% 6.6% $400,000 - $499,999 0.1% 2.3% 3.1% $500,000 - $749,999 0.0% 2.0% 3.0% $750,000 - $999,999 0.0% 0.6% 0.9% $1,000,000 + 0.0% 0.2% 0.6% Average Home Value $142,327 $182,248 $193,639 2017 Owner Occupied Housing Units by Value Total 1,250 14,163 32,730 <$50,000 0.6% 0.6% 1.2% $50,000 - $99,999 19.3% 14.6% 16.6% $100,000 - $149,999 37.2% 29.4% 28.3% $150,000 - $199,999 25.0% 24.2% 20.4% $200,000 - $249,999 13.1% 13.6% 12.0% $250,000 - $299,999 3.0% 6.4% 6.4% $300,000 - $399,999 1.8% 5.6% 7.0% $400,000 - $499,999 0.1% 2.1% 2.8% $500,000 - $749,999 0.0% 2.5% 3.6% $750,000 - $999,999 0.0% 0.6% 1.1% $1,000,000 + 0.0% 0.3% 0.7% Average Home Value $149,176 $191,795 $205,605

Data Note: Income represents the preceding year, expressed in current dollars. Household income includes wage and salary earnings, interest dividends, net rents, pensions, SSI and welfare payments, child support, and alimony. Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2012 and 2017. Esri converted Census 2000 data into 2010 geography. June 14, 2013 Made with Esri Business Analyst ©2013 Esri www.esri.com/ba 800-447-9778 Try it Now! Page 2 of 5

EAGLE LANDING 39 eaglelanding.hpapts.com DEMOGRAPHICS

Market Profile

Eagle Landing 5800 Eagle Cir, Montgomery, AL, 36116 Latitude: 32.3253 Ring: 5 mile radius Longitude: -86.2288 1 mile 3 miles 5 miles 2010 Population by Age Total 9,760 61,490 131,030 0 - 4 10.7% 7.7% 7.1% 5 - 9 8.7% 7.2% 6.7% 10 - 14 7.6% 7.2% 6.8% 15 - 24 21.0% 16.3% 16.5% 25 - 34 18.9% 16.4% 14.9% 35 - 44 11.5% 13.1% 12.6% 45 - 54 9.9% 12.9% 13.3% 55 - 64 6.5% 9.8% 10.7% 65 - 74 2.6% 5.0% 5.9% 75 - 84 1.6% 3.1% 3.8% 85 + 1.1% 1.3% 1.6% 18 + 68.9% 73.5% 75.3% 2012 Population by Age Total 9,814 62,498 132,331 0 - 4 10.7% 7.7% 7.0% 5 - 9 8.6% 7.2% 6.7% 10 - 14 7.5% 7.1% 6.7% 15 - 24 21.0% 16.2% 16.3% 25 - 34 19.2% 16.7% 15.1% 35 - 44 11.1% 12.7% 12.3% 45 - 54 9.7% 12.5% 12.9% 55 - 64 6.8% 10.2% 11.2% 65 - 74 2.8% 5.3% 6.3% 75 - 84 1.5% 3.0% 3.8% 85 + 1.1% 1.4% 1.7% 18 + 69.3% 73.9% 75.8% 2017 Population by Age Total 9,996 64,899 136,105 0 - 4 10.9% 7.7% 7.0% 5 - 9 8.7% 7.2% 6.7% 10 - 14 7.6% 7.2% 6.7% 15 - 24 19.9% 15.3% 15.3% 25 - 34 19.5% 17.0% 15.2% 35 - 44 11.0% 12.5% 12.0% 45 - 54 9.1% 11.6% 12.0% 55 - 64 7.2% 10.6% 11.7% 65 - 74 3.4% 6.3% 7.6% 75 - 84 1.6% 3.1% 3.9% 85 + 1.2% 1.5% 1.8% 18 + 69.1% 74.0% 75.9% 2010 Population by Sex Males 4,373 28,167 60,613 Females 5,386 33,323 70,415 2012 Population by Sex Males 4,406 28,679 61,302 Females 5,407 33,819 71,028 2017 Population by Sex Males 4,497 29,824 63,081 Females 5,499 35,073 73,025

Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2012 and 2017. Esri converted Census 2000 data into 2010 geography. June 14, 2013 Made with Esri Business Analyst ©2013 Esri www.esri.com/ba 800-447-9778 Try it Now! Page 3 of 5

EAGLE LANDING 40 eaglelanding.hpapts.com DEMOGRAPHICS

Market Profile

Eagle Landing 5800 Eagle Cir, Montgomery, AL, 36116 Latitude: 32.3253 Ring: 5 mile radius Longitude: -86.2288 1 mile 3 miles 5 miles 2010 Population by Race/Ethnicity Total 9,758 61,489 131,028 White Alone 10.1% 29.3% 40.7% Black Alone 81.3% 64.0% 53.1% American Indian Alone 0.3% 0.2% 0.2% Asian Alone 0.7% 2.2% 2.3% Pacific Islander Alone 0.3% 0.1% 0.1% Some Other Race Alone 5.9% 2.9% 2.3% Two or More Races 1.4% 1.3% 1.2% Hispanic Origin 7.9% 4.5% 3.8% Diversity Index 42.6 54.7 58.4 2012 Population by Race/Ethnicity Total 9,812 62,498 132,330 White Alone 9.9% 28.9% 40.5% Black Alone 81.5% 64.2% 53.2% American Indian Alone 0.3% 0.3% 0.3% Asian Alone 0.7% 2.2% 2.3% Pacific Islander Alone 0.3% 0.1% 0.1% Some Other Race Alone 5.9% 2.9% 2.3% Two or More Races 1.5% 1.4% 1.4% Hispanic Origin 7.8% 4.6% 3.8% Diversity Index 42.3 54.7 58.5 2017 Population by Race/Ethnicity Total 9,997 64,896 136,106 White Alone 9.0% 27.4% 39.2% Black Alone 81.0% 64.6% 53.6% American Indian Alone 0.5% 0.4% 0.4% Asian Alone 0.6% 2.2% 2.4% Pacific Islander Alone 0.2% 0.1% 0.1% Some Other Race Alone 6.8% 3.5% 2.8% Two or More Races 1.7% 1.7% 1.6% Hispanic Origin 8.9% 5.3% 4.4% Diversity Index 44.3 55.6 59.6 2010 Population by Relationship and Household Type Total 9,759 61,490 131,028 In Households 99.3% 99.6% 97.5% In Family Households 81.2% 80.7% 79.0% Householder 24.8% 25.6% 25.3% Spouse 9.1% 14.6% 15.3% Child 36.5% 33.3% 31.8% Other relative 7.1% 4.8% 4.5% Nonrelative 3.6% 2.4% 2.1% In Nonfamily Households 18.2% 18.9% 18.5% In Group Quarters 0.7% 0.4% 2.5% Institutionalized Population 0.6% 0.4% 0.4% Noninstitutionalized Population 0.1% 0.1% 2.1%

Data Note: Persons of Hispanic Origin may be of any race. The Diversity Index measures the probability that two people from the same area will be from different race/ethnic groups. Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2012 and 2017. Esri converted Census 2000 data into 2010 geography. June 14, 2013 Made with Esri Business Analyst ©2013 Esri www.esri.com/ba 800-447-9778 Try it Now! Page 4 of 5

EAGLE LANDING 41 eaglelanding.hpapts.com DEMOGRAPHICS

Market Profile

Eagle Landing 5800 Eagle Cir, Montgomery, AL, 36116 Latitude: 32.3253 Ring: 5 mile radius Longitude: -86.2288 1 mile 3 miles 5 miles 2010 Households by Type Total 3,884 25,264 53,381 Households with 1 Person 29.4% 31.5% 31.9% Households with 2+ People 70.6% 68.5% 68.1% Family Households 63.1% 62.1% 62.2% Husband-wife Families 23.3% 35.2% 37.7% With Related Children 10.9% 15.8% 16.4% Other Family (No Spouse Present) 39.9% 26.9% 24.5% Other Family with Male Householder 6.4% 4.6% 4.5% With Related Children 3.6% 2.6% 2.4% Other Family with Female Householder 33.5% 22.2% 20.0% With Related Children 27.4% 16.8% 14.2% Nonfamily Households 7.5% 6.4% 5.9%

All Households with Children 42.3% 35.5% 33.4%

Multigenerational Households 5.1% 4.6% 4.5% Unmarried Partner Households 8.5% 6.0% 5.5% Male-female 7.8% 5.4% 4.8% Same-sex 0.8% 0.6% 0.7% 2010 Households by Size Total 3,885 25,265 53,380 1 Person Household 29.4% 31.5% 31.9% 2 Person Household 28.8% 30.4% 31.1% 3 Person Household 19.3% 17.2% 16.6% 4 Person Household 12.5% 12.3% 12.0% 5 Person Household 5.8% 5.3% 5.2% 6 Person Household 2.5% 2.1% 2.0% 7 + Person Household 1.6% 1.1% 1.2% 2010 Households by Tenure and Mortgage Status Total 3,884 25,264 53,382 Owner Occupied 32.0% 53.1% 58.3% Owned with a Mortgage/Loan 27.9% 42.8% 44.9% Owned Free and Clear 4.1% 10.3% 13.4% Renter Occupied 68.0% 46.9% 41.7%

Data Note: Households with children include any households with people under age 18, related or not. Multigenerational households are families with 3 or more parent- child relationships. Unmarried partner households are usually classified as nonfamily households unless there is another member of the household related to the householder. Multigenerational and unmarried partner households are reported only to the tract level. Esri estimated block group data, which is used to estimate polygons or non-standard geography. Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2012 and 2017. Esri converted Census 2000 data into 2010 geography. June 14, 2013 Made with Esri Business Analyst ©2013 Esri www.esri.com/ba 800-447-9778 Try it Now! Page 5 of 5

EAGLE LANDING 42 eaglelanding.hpapts.com DISCLAIMER & CONFIDENTIALITY AGREEMENT

The material contained in this document is confidential, furnished solely for the purpose of considering investment in the property described therein and is not to be copied and/or used for any purpose or made available to any other person without the express written consent of Hendricks-Berkadia. In accepting this, the recipient agrees to keep all material contained herein confidential.

This information package has been prepared to provide summary information to prospective purchasers and to establish a preliminary level of interest in the property described herein. It does not, however, purport to present all material information regarding the subject property, and it is not a substitute for a thorough due diligence investigation. In particular, Hendricks-Berkadia and seller have not made any investigation of the actual property, the tenants, the operating history, financial reports, leases, square footage, age or any other aspect of the property, including but not limited to any potential environmental problems that may exist and make no warranty or representation whatsoever concerning these issues. The information contained in this information package has been obtained from sources we believe to be reliable; however, Hendricks-Berkadia and Seller have not conducted any investigation regarding these matters and make no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. Any pro formas, projections, opinions, assumptions or estimates used are for example only and do not necessarily represent the current or future performance of the property.

Hendricks-Berkadia and Seller strongly recommend that prospective purchasers conduct an in-depth investigation of every physical and financial aspect of the property to determine if the property meets their needs and expectations. We also recommend that prospective purchasers consult with their tax, financial and legal advisors on any matter that may affect their decision to purchase the property and the subsequent consequences of ownership.

All parties are advised that in any property the presence of certain kinds of molds, funguses, or other organisms may adversely affect the property and the health of some individuals. Hendricks-Berkadia recommends, if prospective buyers have questions or concerns regarding this issue, that prospective buyers conduct further inspections by a qualified professional.

The Seller retains the right to withdraw, modify or cancel this offer to sell at any time and without any notice or obligation. Any sale is subject to the sole and unrestricted approval of Seller, and Seller shall be under no obligation to any party until such time as Seller and any other necessary parties have executed a contract of sale containing terms and conditions acceptable to Seller and such obligations of Seller shall only be those in such contract of sale.

For more information on these and other Hendricks-Berkadia exclusive listings, please call or visit our website at www.hendricksberkadia.com

Hendricks-Berkadia is the nation’s largest real estate firm focused exclusively on the sale of multifamily properties. All information contained herein is from sources deemed to be reliable; however, it is not guaranteed. Printed in the USA. All rights reserved.

Copyright 2013 © by Hendricks-Berkadia, Inc.

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