Seasons at Turlock/Boise

Seasons at Turlock Boise Portfolio Consolidated Returns California and Idaho

Seven (7) Year Results for Years 2011 Through 2017

2011 2012 2013 2014 2015 2016 2017*

Occupancy 89.30% 92.20% 93.70% 93.60% 90.70% 92.10% 92.80%

Revenues 7,250,831 7,445,264 7,565,983 7,792,242 7,718,595 8,277,751 8,752,788 Operating Expenses 4,795,126 5,198,182 5,481,489 5,547,126 5,770,873 6,128,715 6,419,991

Net Operating Income 2,455,705 2,247,082 2,084,494 2,245,116 1,947,722 2,149,036 2,342,797

Debt Service 1,453,220 1,450,220 1,453,220 1,125,445 1,048,594 1,048,594 1,010,391

Cash Flow 1,002,485 796,862 631,274 1,119,671 899,128 1,100,442 1,332,406

Equity Invested 1,464,332 1,464,332 1,464,332 1,464,332 1,464,332 1,464,332 1,464,332

Cash on Cash 68.46% 54.42% 43.11% 76.46% 61.40% 75.15% 90.99% *Annualized

easons at Turlock/Boise is a two-property/two-city portfolio of process and restructure the defaulted mortgage. Kodiak S Assisted Living Memory Care projects in Turlock, California and simultaneously co-invested and raised an additional $1.5MM of Boise, Idaho. The acquisition of the Seasons portfolio was syndicated new equity to satisfy delinquent mortgage payments, legal fees to TIC investors by Evergreen Realty Group on January 23, 2007. and deferred maintenance. Kodiak, as Managing Member, then Starting in early 2009, the TIC investors stopped receiving monthly successfully “rolled-up” the existing TIC investors into a new LLC distributions. Soon after, Evergreen stopped making debt service which entered into a modified loan extension through April 2014. payments and the property was posted for foreclosure. The portfolio was stabilized within the next twelve (12) months At that point, the equity value of the TIC investors was zero. and monthly distribution resumed January 1, 2011 and have Kodiak Senior Living Management Company, an affiliate composed continued through December, 2017. The Seven (7) year average cash of Kodiak Capital Advisors was hired on March 1, 2010 as on cash return for the portfolio is 10.42% on post foreclosure based asset manager for the Seasons portfolio. Kodiak immediately began on original equity. negotiations with the existing lender, GE, to stop the foreclosure See attached schedule of cash flow from 2011 through 2017.

Denny Landers [email protected] 214.560.0800 Case Study: Seasons at Turlock/Boise

Put the power of Kodiak Capital behind your DST 1031 Exchange 14160 Dallas Parkway . Suite 700 . Dallas, TX 75254 . 214.953.1031 . Fax: 214.501.0751 . KodiakCapitalAdvisors.com Put the power of Kodiak Capital behind your DST 1031 Exchange Overland Court Paramount Court

When you choose a property and asset management company you should first make sure they are experienced, knowledgeable and approach ______Boise ______5 SUMMARY OF SALIENT FACTS 26 55 National 75 SUMMARY OF SALIENT FACTS Forest Yosemite problem solving with a plan that is hands on and disciplined. Your asset and property management company will have a direct impact on Building: OVERLAND Regional Analysis: STOCKTON National Memory Care COURT Sawtooth Park Property: SENIOR National Property: Forest The subject property is located in Turlock in the performance and return on your real estate investment. Kodiak specializes in asset and property management and with a proven record Overland Court Senior Living Size (Gross Square Feet): 18,801 MERIDIAN LIVING Paramount Court Senior Living 120 NAMPA BOISE Stanislaus County, California. Turlock is TRACY of high performance, integrity and commitment to its clients. The goal is to increase property performance and value for the client. Assisted Living / Memory Care 580 Number of Stories: 1 Address: PARAMOUNT 84 part of the Turlock Metropolitan Statistical COURT Address: 3791 Crowell Road, Turlock, California 95382 MODESTO SENIOR 132 Year Built: 95 20 LIVING Turlock Lake State 10172 & 10250 West Smoke Ranch Drive, 2002 ______Area. As of the 2010 census, the city had a Recreation Area Morley Nelson Snake River Boise, Idaho 83709 Birds of Prey National population of 68,549 people, up from 55,810 TURLOCK Exterior: Stucco, brick and vinyl siding Conservation Area 5 ______Size: 3.76 acres, or 163,786 square feet 33 165 99 at the 2000 census, making it the second- ABOUT KODIAK CAPITAL Framing: Wood Shape: Rectangular 140 MERCED Size: 4.97 acres, or 216,628 square feet largest city in the county following Modesto. Henry W. Coe San Luis National Quality: Good Zoning: R-L (Low Density Residential) Turlock covers a total area of 16.9 square State Park Wildlife Refuge Shape: Irregular odiak Capital Advisors, LLC (“KCA”) was founded by Denny Landers in 2016. KCA was established as a commercial real estate miles, with a population density of 4,100 Condition: Good Corner Influence:Corner investment and management company specializing in real estate syndications and property asset management services. The Company Zoning: R-2D (Combined Residential) people per square mile. K ______Licensed Capacity: 38 Memory Living Beds Corner Influence:Corner County is bordered by Canyon County to the west, ______will have an emphasis on 1031 Exchanges using fractional ownership in a Delaware Statutory Trust (DST) structure. The company will act Building: ______Operating Capacity: Gem and Boise counties to the north, Elmore Assisted Living as a Sponsor/Manager entity that will offer to Exchange a DST interest in real property. The Sponsor/Manager will secure non recourse 38 Memory Living Beds Transportation: County to the east and Owyhee County to the south. Size (Gross Square Feet): 55,955 Building: Assisted Living Total Units: 35 The city has several transportation linkages financing as well as prepare a comprehensive Private Placement Memorandum detailing the property and DST Exchange. ______Number of Stories: 1 to surrounding areas. State Route 99 provides Size (Gross Square Feet): 48,397 Operating Units: 35 Prior to the formation of Kodiak Capital Advisors, the previous thirty-eight (38) years were spent syndicating and managing over Transportation: ______Year Built: 2001 access to Stockton to the northwest and $160 million of 1031 Exchange equity in Tenant In Common (TIC) co-ownership structures in over a million square feet of commercial Number of Stories: 1 The city has adequate transportation linkages to Merced to the southeast. Interstate 5, located Regional Analysis: surrounding areas. Boise is served by Interstate 84, Exterior: properties comprising multi-tenant office buildings, retail, office/flex and single-tenant office/warehouse NNN properties; acquiring Year Built: 1999 Stucco and brick just southwest of Turlock, provides access The subject property is located in Boise, Ada which connects Boise with Portland, Oregon to the Framing: Wood to Tracy to the northwest and Bakersfield to the 5.3 million square feet of Class A/B multi tenant office buildings and 500 units of multi-family apartments located in seven (7) states and Exterior: Stucco, brick and vinyl siding County, Idaho. Boise is the capital of and largest city northwest and Salt Lake City, Utah, to the southeast. southwest. Other major roadways include fourteen (14) different market places; and forming a management company to provide both property and asset management services to Framing: Wood in Idaho. It is the seat of Ada County, which is Interstate 184 (locally known as “The Connector”) Quality: Good located in southwest Idaho. Boise is located along is a nearly five-mile stretch of freeway connecting state routes 4, 33, 108, 120 and 132. all separate ownership entities. During this thirty-eight (38) year period over seventy (70) properties were assembled for various closely related Condition: Good Quality: Good the Boise River and anchors the Boise City-Nampa Interstate 84 with the downtown Boise area that ownership groups. Condition: Good Metropolitan Area, which is home to approximately begins approximately one mile northeast of the subject. Licensed Capacity: 100 Residential Care for The management team of KCA has extensive experience with acquisition, financing/refinancing, due diligence and disposition 616,500 people and is the most populous State Highway 55 extends to the northeast, while the Elderly (RCFE) beds Licensed Capacity: 98 Assisted Living Beds metropolitan area in Idaho. It contains the state’s State Route 16 provides access to the city of Emmett. services for both domestic US and foreign real estate investors. On their behalf, over $685 million was invested in the acquisition/ Operating Capacity: 100 Residential Care for Operating Capacity: 98 Assisted Living Beds three largest cities, Boise, Nampa and Meridian, Public transportation includes a series of bus lines the Elderly (RCFE) beds management of commercial and multi-family properties. and is the largest city between Salt Lake City, Utah, operated by Valley Ride. Passenger airline transportation Total Units: 82 Total Units: 81 The strength of Kodiak Capital Advisors lies within the management’s lengthy and broad-based experience in all areas of real and Portland, Oregon. Boise State University is provided by Boise Airport, located 4.6 miles east Operating Units: 81 is located southwest of the downtown area. Ada of the subject property. estate investing, property and asset management, 1031 Exchanges and Tenant In Common syndications. Operating Units: 80 The Company will provide a full range of services designed to maximize the returns on commercial properties with long-term NNN 2011 2012 2013 2014 2015 2016 2017* 2011 2012 2013 2014 2015 2016 2017* leases and will be offered in a DST ownership structure. Occupancy 89.90% 85.30% 90.40% 92.30% 86.40% 87.80% 92.80% Occupancy 93.50% 95.60% 95.40% 94.20% 92.80% 94.20% 92.80%

Revenues 3,569,717 3,687,973 3,887,360 3,975,161 3,962,373 4,358,922 4,851,889 Revenues 3,681,114 3,757,291 3,678,623 3,817,081 3,756,222 3,918,659 3,910,899 Operating Expenses 2,797,466 2,996,071 3,204,671 3,236,715 3,348,732 3,591,348 3,847,417 Operating Expenses 1,997,660 2,202,111 2,276,818 2,310,411 2,422,141 2,537,367 2,572,574

Net Operating Income 772,251 691,902 682,689 738,446 613,642 767,574 1,004,472 Net Operating Income 1,683,453 1,555,180 1,401,806 1,506,670 1,334,082 1,381,292 1,338,325

Debt Service 479,564 479,564 479,564 369,009 341,220 341,220 328,331 Debt Service 973,656 973,656 973,656 756,436 707,374 707,374 682,060

Cash Flow 292,687 212,338 203,125 369,437 272,422 426,354 676,141 Cash Flow 709,797 581,524 428,150 750,234 626,707 673,918 656,265

Equity Invested 483,228 483,228 483,228 483,228 483,228 483,228 483,228 Equity Invested 981,099 981,099 981,099 981,099 981,099 981,099 981,099

Cash on Cash 60.57% 43.94% 42.04% 76.45% 56.38% 88.23% 139.92% Cash on Cash 72.35% 59.27% 43.64% 76.47% 63.88% 68.69% 66.89% *Annualized *Annualized

Country Club, Frisco, TX Lakewood Ranch, Bradenton, FL Uptown Center, Dallas, TX Capital Improvements 2011 - Sept 2017 2011 2012 2013 2014 2015 2016 2017 TOTAL Capital Improvements 2011 - Sept 2017 2011 2012 2013 2014 2015 2016 2017 TOTAL

Land Improvements** 10,821 0 16,748 0 6,791 0 6,000 40,360 Land Improvements** 0 7,466 0 0 9,380 0 0 16,846 Building Improvements 9,081 63,458 18,066 18,300 152,507 52,427 69,281 383,121 Building Improvements 4,340 14,689 13,810 1,250 4,943 62,672 0 101,705 Furniture 16,743 650 0 10,022 4,810 736 79,335 112,295 Furniture 16,029 644 1,200 813 10,622 5,670 54,583 89,560 Equipment 5,155 1,736 17,259 23,414 12,527 14,164 8,713 82,969 Equipment 0 5,882 21,774 2,893 21,787 15,374 2,208 69,918 Computers 800 1,309 852 1,832 0 1,724 0 6,517 Computers 4,776 10,892 6,779 0 3,529 0 0 25,977

TOTAL 42,600 67,153 52,926 53,568 176,635 69,050 163,329 625,262 TOTAL 25,145 39,574 43,563 4,955 50,261 83,717 56,791 304,006 **NOTE: Related to Exterior Landscaping, Irrigation, and Parking Lot Repairs **NOTE: Related to Exterior Landscaping, Irrigation, and Parking Lot Repairs Seasons at Turlock Boise Portfolio Consolidated Returns California and Idaho