The Chateau Apartments

THE CHATEAU APARTMENTS

/ 32UNITS 1971CONSTRUCTION 2016

OFFERING MEMORANDUM 4636 ALVIN DARK AVENUE, BATON ROUGE, LOUISIANA EXCLUSIVE MARKETING ADVISORS

INVESTMENT ADVISORS CAPITAL MARKETS TEAM

CHAD RIGBY JUSTIN LANDRY Managing Director / Multifamily Sales VP of Finance THE CHATEAU APARTMENTS 225-329-0265 985-246-3729 [email protected] [email protected]

SABAN SELLERS STEPHEN FARNSWORTH Investment Advisor / Multifamily Walker & Dunlop 504-620-8122 Managing Director / Multifamily [email protected] Finance 504-585-0581 BEEZIE LANDRY [email protected] VP of Investment Advisors 985-246-3781 DOUG HART [email protected] Walker & Dunlop VP of Multifamily Finance JONATHAN WALKER 504-585-1363 Maestri-Murrell Commercial Real Estate [email protected] Senior Commercial Sales and Leasing Executive 225-810-3294 [email protected]

PROPERTY TOURS Property tours must be scheduled in advance by contacting Chad Rigby or Jonathan Walker with a minimum of 24 hours notice. Property tours will include a representative sampling of unit floor plans, community amenities, and maintenance areas as appropriate.

OFFER SUBMISSION PROCEDURE Offers should be submitted in the form of a non-binding Letter of Intent detailing terms of the purchase including:

1. Asset pricing, 2. Inspection, due diligence and closing time frame, 3. Deposit(s), and 4. Qualifications to close.

Offers should be delivered to the attention of Chad Rigby or Jonathan Walker.

The information provided in this Offering Memorandum has been derived from sources deemed reliable. However, it is subject to errors, omissions, price change and/or withdrawal, and no warranty is made as to the accuracy. Further, no warranties or representation shall be made by Stirling Properties, LLC, or its agents, representatives or affiliates regarding oral statements which have been made in the discussion of the property. This presentation, prepared by Stirling Properties, LLC, was sent to the recipient under the assumption that s/he is a buying principal. Any potential purchaser is advised that s/he should either have the abstract covering the real estate which is the subject of the contract examined by an attorney of his/her selection, or be furnished a policy of title insurance.

THE CHATEAU APARTMENTS STIRLING INVESTMENT ADVISORS 2 TABLE OF CONTENTS

EXECUTIVE SUMMARY Market Overview Major Employers Local Retail Demographics

PROPERTY DESCRIPTION Amenities Property Details

FINANCIAL ANALYSIS Pro Forma Pro Forma Assumptions

RENT COMPS

APPENDIX LREC Disclaimer Stirling Properties, LLC Maestri-Murrell, Inc. 109 Northpark Blvd., Ste. 300 9018 Jefferson Highway Covington, La 70403 Baton Rouge, LA 70809 [office] 985-898-2022 [office] 225-298-1250 [fax] 985-898-2077 [fax] 225-298-1251 StirlingProperties.com mmcre.com

THE CHATEAU APARTMENTS STIRLING INVESTMENT ADVISORS 3 INVESTMENT SUMMARY

THE CHATEAU APARTMENTS

ADDRESS: 4636 Alvin Dark Avenue, Baton Rouge, LA 70820 SALE PRICE: $1,760,000 TERMS: All-Cash Sale

SITE INFORMATION Product Type Class “C+” Apartment Community Number of Units 32 Year of Construction 1971 Year of Renovation 2016 Net Rentable Square Feet 21,304 SF Average Unit Size 666 SF Average Market Rent $730 | $1.09 PSF

THE CHATEAU APARTMENTS STIRLING INVESTMENT ADVISORS 4 EXECUTIVE SUMMARY THE CHATEAU APARTMENTS STIRLING INVESTMENT ADVISORS 5 EXECUTIVE SUMMARY - MARKET OVERVIEW

BATON ROUGE

The Baton Rouge MSA is the largest larger than Southern. Baton Rouge MSA in the state in terms of numbers is also the location of the State of parishes-- nine total, Ascension, East Capitol, which means government Baton Rouge, East Feliciana, Iberville, employment plays a major role. The Livingston, Pointe Coupee, St. Helena, region’s growing high tech sector West Baton Rouge, West Feliciana. is anchored by the IBM complex in Never has this MSA experienced an downtown Baton Rouge to the EA industrial expansion like the one Sports Studio on Louisiana State presently underway. $18.9 billion University’s campus. in announced industrial expansions in this MSA since 2012- either built, The Baton Rouge MSA is positioned under construction or in planning for a strong economic showing in phase. What differentiates this MSA 2019 and 2020, due to a variety of from New Orleans and Lake Charles- factors. This includes the industrial --sites of other major industrial boom, recent healthcare expansion announcements---is that in the Baton in the area, the continued success Rouge MSA almost all the announced of the Port of Baton Rouge, recent projects ($15.8 billion) are either positive employment trend and of MSA FAST FACTS completed or under construction. course the stable benefit of being the Baton Rouge provides jobs for over home to both the state capital and $18.9 Billion 400,000 workers and is second in size Louisiana State University. Pairing the 9 Total in Industrial in terms of population. The petro- aforementioned with Baton Rouge’s 9 Parishes chemical industry looms large in this recovery from “The Great Flood of Expansion MSA with the largest concentration 2016”, there is much to look forward of chemical employment in the state, to for this MSA in both the present 2nd Most 400,000+ the country’s fourth largest refinery, and years to come. Populated MSA Workers 2 and an unusually high concentration In Louisiana of industrial construction workers to support the industry. Both LSU and Southern University are located in Petro-Chemical State Capital this MSA along with Baton Rouge Industry Looms & Several Community College, which is now Large Universities

THE CHATEAU APARTMENTS STIRLING INVESTMENT ADVISORS 6 EXECUTIVE SUMMARY - MARKET OVERVIEW

THE INDUSTRIAL BOOM

In recent years, there has been an unprecedented amount of industrial projects announced and completed in the Baton Rouge MSA. With $18.9 billion in total industrial announcements since 2012, $15.8 billion of that has been completed or is underway, with the remaining $3.1 billion waiting for a FID (Front End Engineering & Design) and to begin construction. There are multiple industrial projects slated for completion in the near future or in pre-FID phase, which we list below:

Shintech $1.4 billion ethane cracker and connections to OVC and VCM production lines. Will create 100 new permanent jobs at an average of $68,500 annual salary annually. Shell Chemical $717 million alpha olefins plant located in Geismar. 12 new jobs at $80,000 salary annually. BASF $150 million construction expansion to double MDI output at the facility. 15 new jobs at $86,600 annual salary. Thermaldyne Construction completed on $50 million industrial project. Adding 75 new jobs with an $80,000 annual salary. Methanex $1.3 billion to build a third plant in Ascention Parish, slated for mid-2019 construction. Will create 25 permanent jobs at $80,000 annual salaries. ExxonMobil $400 million expansion to its Baton Rouge polyethylene plant, which would create 65 new jobs at $80,000 annual salaries.

While these expansions will create permanent high paying jobs, they also provide a strong demand for skilled construction workers. This will provide a positive boost in employment, as demand for skilled construction workers will increase from 8,000 to over 12,000 between 2018-2021, according to the Greater Baton Rouge Industrial Alliance.

Baton Rouge already boasts some of the largest employers in the state, many of whom are in the Industrial Sector, specifically in the chemical industries.

THE CHATEAU APARTMENTS STIRLING INVESTMENT ADVISORS 7 EXECUTIVE SUMMARY - MARKET OVERVIEW

HEALTHCARE EXPANSION In recent years, Baton Rouge has seen an expansion in its already large healthcare industry, with both recently completed projects as well as ones in line for completion in the near future. Ochsner Health has just completed its $116 million expansion of its Baton Rouge medical facilities that includes a multi-specialty clinic and surgical hospital. The new complex will serve roughly 2,000 patients a day. Upon opening, Oschner Health will create 450 permanent jobs. Our Lady of the Lake Children’s Hospital is slated to complete its $230 million, 350,000 square-foot, 13 bed facility in 2019. Provident ProtonCare is under construction on an $85 million proton therapy center that will provide 95 permanent jobs. Baton Rouge General is expanding both its cancer treatment center at the Pennington Cancer Center as well as an expansion of its Bluebonnet critical care tower, combined totaling over $50 million in project cots.

PORT OF GREATER BATON ROUGE: THE UNSUNG SUCCESS STORY

The continued success of the Port of Greater Baton Rouge is one that has not been acknowledged enough but is none-the-less one to be of note. The port is now the 9th largest port in the nation in terms of tonnage moved. This is due to the jump in tonnage handled from 2.7 to now 14.1, a 5.2x multiple. The Port of Baton Rouge was able to handle this increased tonnage due to the construction of the Louis Dreyfus grain elevator complex at the port, as well as the Drax Biomass dome storage facilities. There is also continued expansion dollars being spent to further improve the port, with a $20 million expansion by Union Pacific which will almost double its train sizes from 45-car trains to now 88-car trains.

STATE CAPITAL AND EDUCATION

Baton Rouge benefits from being the state capital, which has a direct impact on the local employment. As of September 2018, roughly 18% of total employment distribution in Baton Rouge was attributed to government related jobs. Aside from being the state capital, Baton Rouge is also home to Louisiana State University (LSU), which ranked 65th on the nations Top 100 Public Colleges. LSU is the highest rated public university in the state, with an enrollment of 31,527 on the main campus. Of the 31,527 enrollment, 22,344 students live off campus according to LSU’s 2018 Fall report. A study done by the Economics & Policy Research Group at the E.J Ourso College of Business has determined that LSU has an economic impact of $5.1 billion, which equates to $1,097 per Louisiana citizen and a return of $13.25 for every dollar of state investment. LSU also is directly responsible for 41,006 jobs, a total of 20,366 of which are directly attributable to the university across campuses, over 7,000 of which are directly on LSU’s flagship campus in Baton Rouge. All together, the entire LSU entity supports 2.6 percent of all Louisiana jobs.

THE CHATEAU APARTMENTS STIRLING INVESTMENT ADVISORS 8 EXECUTIVE SUMMARY - MARKET OVERVIEW

EMPLOYMENT

After pretty stagnant employment numbers from 2016-2018, due in large partto “The Great Flood of 2016” Baton Rouge is poised for job creation in 2019 and 2020. According to the Louisiana Economic Outlook, Baton Rouge is projected to increase employment numbers by 6,000 (1.5%) and 8,100 (1.9%), respectfully. This is adding employment to its existing employment of 412,200, second largest in the state. Other employment announcements include the following:

READY SHIELD SOLUTIONS North Baton Rouge scored this economic development win to the tune of 300 permanent jobs as well as 300 construction jobs during the buildout phase. Ready Shield Solutions builds structural panels for houses. BRNEDD estimates the company will also generate roughly $46 million in taxes over the next decade.

IBM currently employs roughly 575 full-time workers at a salary benchmark of $46,000 a year which is a deal the firm inked with the state under the Jindal-era. They must hire 225 new employees in the coming year to reach the 800 total employed benchmark agreement between IBM and the state.

Located in the Louisiana State University Innovation Park, the container security company is opening its cybersecurity-related global engineering center that will add 20 jobs at a $90,000 annual salary.

Coming off recently moving into its new $20 million building, the high-tech company now has 96 employees.

THE CHATEAU APARTMENTS STIRLING INVESTMENT ADVISORS 9 TOP EMPLOYERS IN BATON ROUGE MSA

Turner Industries | 11,300 Jobs Turner Industries employees build, maintain and service the nation’s heavy industrial sector helping make the life we live possible by supporting the companies that produce fuel, energy, and products essential to our daily existence. Since 1961, Turner has steadily worked to provide one solution for our clients success. To do this we find, develop and support the very best people for the jobs we perform throughout our four divisions: Construction; Maintenance and Turnarounds; Fabrication; and Equipment and Specialty Services.

Louisiana State University System | 6,200 Jobs LSU is the flagship school of the state of Louisiana, as well the flagship institution of the Louisiana State University System, and is the most comprehensive university in Louisiana. For the flagship, enrollment is up to 31,527, which includes the fourth largest freshman class in LSU’s history at 5,624 students. Several of LSU’s graduate schools, such as the E.J. Ourso College of Business and the Paul M. Hebert Law Center, have received national recognition in their respective fields of study.

Performance Contractors, Inc | 5,500 Jobs Performance Contractors, Inc. was established in 1979 as a Merit Shop General Industrial Contractor, providing all phases of industrial construction– from site prep through start- up. Performance Contractors serves the chemical, petrochemical, power, automotive manufacturing, steel, fertilizer, pulp and paper, and refinery industries. Performance Contractors, Inc. is currently licensed to provide industrial construction and maintenance services in 30 states.

Our Lady of the Lake Regional Medical Center | 4,500 Jobs Our Lady of the Lake is uniquely capable of caring for a full range of illness or injury, including those that are extremely complex, for both pediatric and adult patients. They have an 800-bed hospital, the area’s only Level II Trauma Center, and a dedicated Children’s Hospital, which will transition to a freestanding hospital in 2019. They serve 35,000 inpatients and 650,000 outpatients annually.

ExxonMobil | 4,200 Jobs Exxon Mobil Corporation, doing business as ExxonMobil, is an American multinational oil and gas corporation headquartered in Irving, Texas. ExxonMobil’s Baton Rouge Refinery in Baton Rouge, Louisiana is the fourth-largest oil refinery in the United States and twelfth-largest in the world.

THE CHATEAU APARTMENTS STIRLING INVESTMENT ADVISORS 10 EXECUTIVE SUMMARY - MAJOR EMPLOYERS

State Capital & Government Offices Complex

THE CHATEAU APARTMENTS STIRLING INVESTMENT ADVISORS 11 EXECUTIVE SUMMARY - LOCAL RETAIL

Towne Center at Cedar Lodge Hammond Aire Plaza

Acadian Perkins Plaza

Mall of Louisiana

Siegen Plaza

Perkins Rowe

Siegen Lane Marketplace

THE CHATEAU APARTMENTS STIRLING INVESTMENT ADVISORS 12 EXECUTIVE SUMMARY - DEMOGRAPHICS

POPULATION INCOME 2019 ESTIMATED HOUSEHOLD INCOME

$80,000 5 Miles $70,000 $60,000 $50,000 3 Miles $40,000 $30,000 1 Mile $20,000 $10,000 0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 $0 1 Mile 3 Miles 5 Miles 2024 Estimated Population 2019 Population

HOUSEHOLDS EDUCATION MEDIAN AGE

35 4% 60,000 60,000 18% 30

50,000 50,000 Elementary25 35% High School Associates20 Degree 40,000 40,000 Bachelors Degree 15 Graduate Degree 30,000 30,000 30% 10

4% 20,000 20,000 13% 5

25% 0 24% Some High School or Less 10,000 10,000 1 Mile 3 Miles 5 Miles High School Graduate Median Age Some College 0 0 1 Mile 3 Miles 5 Miles Associates Degree Bachelors Degree 2019 2024 2010 Census 2000 Census 13% Graduate Degree

29% THE CHATEAU APARTMENTS 5% STIRLING INVESTMENT ADVISORS 13 PROPERTY DESCRIPTION THE CHATEAU APARTMENTS STIRLING INVESTMENT ADVISORS 14 PROPERTY DESCRIPTION - AMENITIES

COMMUNITY AMENITIES

• Laundry Facilities

• Video Patrol

• Public Transportation

• Maintenance On Site

• Property Manager On Site

• Pool

• Gated Entry

APARTMENT AMENITIES • Ceiling Fans

• Granite Countertops

• Dark Espresso Cabinets

• Air Conditioning

• Cable Ready

• Washer/Dryer Hookup

• Washer/Dryer in Select Units

• Heating

• Tub/Shower

• Walk In Closets

• Hardwood Floors

• Tile Floors

THE CHATEAU APARTMENTS STIRLING INVESTMENT ADVISORS 15 FINANCIAL ANALYSIS THE CHATEAU APARTMENTS STIRLING INVESTMENT ADVISORS 16 FINANCIAL ANALYSIS - PRO FORMA

ANNUALIZED HISTORICAL BUYER'SPRO FORMA UW ASSUMPTIONSASSUMPTIONS PRO FORMA ASSUMPTIONS FINANCIALS Apr-19 T12 Apr-19 T6 Apr-19 T3 Apr-19 T1

Income Totals % GSR Totals % GSR Totals % GSR Totals % GSR % GSR % GSR Gross Scheduled Rent 237,104 248,052 248,986 248,197 280,128 $730 $ Unit/Mth 280,128 $730 $ Unit/Mth Loss-to-Lease - 0.0% - 0.0% - 0.0% - 0.0% (14 ,006) 5.0% % GSR (14 ,006) 5.0% % GSR Gross Potential Income $237,104 100.00% $248,052 100.00% $248,986 100.00% $248,197 100.00% $266,122 $693 $ Unit/Mth $266,122 $693 $ Unit/Mth

Economic Loss 5.0% 5.0% Vacancy - 0.0% - 0.0% - 0.0% - 0.0% (8 ,404) 3.0% % GSR (8 ,404) 3.0% % GSR Concessions (850) (0.4%) (1 ,300) (0.5%) (1 ,400) (0.6%) (1 ,200) (0.5%) (2 ,801) 1.0% % GSR (2 ,801) 1.0% % GSR Bad Debt - 0.0% - 0.0% - 0.0% - 0.0% (2 ,801) 1.0% % GSR (2 ,801) 1.0% % GSR Non-Revenue Units- 0.0% - 0.0% - 0.0% - 0.0% - 0.0% % GSR - 0.0% % GSR Total Rental Income $236,254 99.6% $246,752 99.5% $247,586 99.4% $246,997 99.5% $252,115 $657 $ Unit/Mth $252,115 $657 $ Unit/Mth

Other Income Actual $ / Unit Pro Forma $ / Unit Pro Forma $ / Unit Pro Forma $ / Unit Other Income 3,870 121 9,600 300 9,600 300 9,600 300 9,600 $300 $ Unit/Yr 9,600 $300 $ Unit/Yr RUBS Income - 0 - 0 - 0 - 0 - $0 $ Unit/Yr - $0 $ Unit/Yr Total Other Income $3,870 121 $9,600 300 $9,600 300 $9,600 300 $9,600 $25 $ Unit/Mth $9,600 $25 $ Unit/Mth

Effective Gross Income $240,124 7,504 $256,352 8,011 $257,186 8,037 $256,597 8,019 $261,715 $682 $ Unit/Mth $261,715 $682 $ Unit/Mth

Expenses Actual $ / Unit Actual $ / Unit Actual $ / Unit Actual $ / Unit Personnel 58,544 1,830 44,686 1,396 39,789 1,243 40,000 1,250 40,000 $1,250 $ Unit/Yr 28,800 $900 $ Unit/Yr Repairs and Maintenance 22,003 688 15,312 479 12,534 392 20,800 650 20,800 $650 $ Unit/Yr 22,400 $700 $ Unit/Yr Contract Services 15,609 488 15,127 473 12,486 390 15,040 470 15,040 $470 $ Unit/Yr 14,400 $450 $ Unit/Yr Turnover/Make-Ready 4,096 128 3,495 109 4,855 152 4,800 150 4,800 $150 $ Unit/Yr 4,800 $150 $ Unit/Yr Advertising/Marketing 5,480 171 5,220 163 5,640 176 4,800 150 4,800 $150 $ Unit/Yr 4,800 $150 $ Unit/Yr Administrative 22,289 697 21,438 670 21,897 684 9,600 300 9,600 $300 $ Unit/Yr 28,800 $900 $ Unit/Yr Utilities 15,988 500 14,122 441 13,706 428 15,040 470 15,040 $470 $ Unit/Yr 15,040 $470 $ Unit/Yr Total Controllable Expenses $144,008 4,500 $119,400 3,731 $110,906 3,466 $110,080 3,440 $110,080 $3,440 $ Unit/Yr $119,040 $3,720 $ Unit/Yr

Ad-Valorem Taxes 9,236 289 18,471 577 - 0 18,285 571 18,285 $571 $ Unit/Yr 18,285 $571 $ Unit/Yr Management Fee - 0 - 0 - 0 10,469 327 10,469 4.0% % EGI 10,469 4.0% % EGI Insurance 44,807 1,400 53,924 1,685 (2 ,616) (82) 11,200 350 11,200 $350 $ Unit/Yr 11,200 $350 $ Unit/Yr Total Uncontrollable Expenses $54,042 1,689 $72,395 2,262 ($2,616) (82) $39,953 1,249 $39,953 $1,249 $ Unit/Yr $39,953 $1,249 $ Unit/Yr

Total Expenses $198,050 6,189 $191,795 5,994 $108,290 3,384 $150,033 4,689 $150,033 $4,689 $ Unit/Yr $158,993 $4,969 $ Unit/Yr

Net Operating Income $42,074 1,315 $64,557 2,017 $148,896 4,653 $106,563 3,330 $111,682 $3,490 $ Unit/Yr $102,722 $3,210 $ Unit/Yr

Replacement Reserves - 0 - 0 - 0 - 0 - $0 $ Unit/Yr - $0 $ Unit/Yr Net Operating Income after Capital Costs $42,074 1,315 $64,557 2,017 $148,896 4,653 $106,563 3,330 $111,682 $3,490 $ Unit/Yr $102,722 $3,210 $ Unit/Yr

THE CHATEAU APARTMENTS STIRLING INVESTMENT ADVISORS 17 FINANCIAL ANALYSIS - UNDERWRITING ASSUMPTIONS

Analysis Period General Expense Considerations Property Taxes The Analysis Period begins with a June 2019 Expenses are grown at 2% per year for the duration The property is located within the East Baton Rouge closing and assumes a 10 year hold period. of the hold period. Appraisal District. Taxing districts include the City of Baton Rouge and the Parish Tax millage. The millage rate is currently 123.13 and the total Assessed Value Gross Scheduled Rent (GSR) EXPENSES for 2018 was $750,000. The buyer should rely on a Pro Forma Gross Scheduled Rent of $280,128 is property tax consultant to determine the potential based on the scheduled rents in the April rent roll. Payroll & Benefits changes to assessed value upon acquisition of the Rent growth is estimated to be 2% per year during property. the hold period. Personnel expenses include salaries and payroll- related benefits. Pro Forma Personnel totals PROPERTY TAX INFORMATION Loss-to-Lease $40,000 or $1,250 a unit. Taxing Jurisdiction Property Information The Property is projected to operate with a Loss- Repairs & Maintenance Millage Type: 2018 Assessment to-Lease of 3% annually throughout the holding Repairs and Maintenance is assumed to be East Baton Rouge Parish: 83.16 Land: $200,000 period. $20,800 or $650 a unit. City of Baton Rouge: 15.23 Building: $550,000 Contract Services Vacancy Loss Total 2017 Tax Rate: 96.75 Total: $750,000 Contract Services is assumed to be $15,040 or Vacancy is assumed to be of 3% of GSR to reflect $470 per unit. stabilized operations throughout the hold period. Management Fee Make Ready/Turnover Concessions The management fee is projected to be 4% of Effective Make Ready/Turnover related expenses are Gross Income. Concessions are based on recent market conditions assumed to be $4,800 or $150 per unit. and assumed to be 1% of GSR in Year 1 and in Insurance subsequent years thereafter. Marketing & Advertising Insurance expense is projected is $11,200 or $350 per Promotional marketing and advertising is $4,800 or unit based on comparable properties in the market. Bad Debt $150 per unit. General Debt Considerations Bad Debt losses are projected to be 1% of GSR in Administrative Pro Forma Year 1 and thereafter. As of June 2019 Walker & Dunlop provided the below Administrative expenses are comprised of general loan terms for a Class C multifamily deal of this general office operations expenses. Pro forma nature in Louisiana markets; Other Income Administrative totals $9,600 or $300 per unit. • 10 year term Other Income includes security deposit forfeitures, • 75% Max LTV vending income, fee income, and miscellaneous Utilities • 1.25x min DSCR income. Grown 2% per year for the hold period. Utilities are assumed to be $15,040 or $470 per • 4.55% interest rate unit. • 30-year amortization schedule

THE CHATEAU APARTMENTS STIRLING INVESTMENT ADVISORS 18 RENT COMPS RENT COMPS - SUMMARY

2 3 1

4 5

RENT COMPARABLES Property Name Built SF Units NRA Market Rent Market / SF Tiger Park 1969 1,158 111 128,500 666 0.58 Cambridge 1977 771 274 211,125 678 0.88 Tiger Plaza 1975 872 300 261,480 968 1.11 Blox at Brightside 1980 815 63 51,320 835 1.02 The Villas on Brightside 1983 889 148 131,600 902 1.01 El Cid 1970 536 78 41,790 651 1.21 Total / Average 848 SF 974 181,238 $808 $0.95

The Chateau 1971 666 SF 32 21,304 $730 $1.10

THE CHATEAU APARTMENTS STIRLING INVESTMENT ADVISORS 20 1 BEDROOM UNITS (SORTED BY MARKET RENT) Property Name Built SF Units Market Rent Market / SF Tiger Plaza 1975 687 40 804 1.17 Tiger Plaza 1975 690 52 804 1.17 The Villas on Brightside 1983 650 30 747 1.15 Cambridge 1977 450 1 727 1.62 Cambridge 1977 760 13 726 0.96 The Chateau 1971 618 24 709 1.15 El Cid 1970 630 8 700 1.11 Cambridge 1977 660 16 651 0.99 El Cid 1970 525 70 645 1.23 Cambridge 1977 770 32 626 0.81 Cambridge 1977 550 32 614 1.12 Tiger Park 1969 900 4 588 0.65 Cambridge 1977 650 26 576 0.89 Cambridge 1977 585 33 551 0.94 Tiger Park 1969 500 5 550 1.10 Cambridge 1977 300 2 476 1.59 Total / Average 633 SF 388 $679 $1.07

2 BEDROOM UNITS (SORTED BY MARKET RENT) Property Name Built SF Units Market Rent Market / SF Tiger Plaza 1975 1,009 88 1,098 1.09 Cambridge 1977 1,340 6 977 0.73 Tiger Plaza 1975 889 48 953 1.07 The Villas on Brightside 1983 950 118 942 0.99 Tiger Plaza 1975 832 40 893 1.07 Cambridge 1977 980 16 824 0.84 The Chateau 1971 809 8 791 0.98 Cambridge 1977 800 8 777 0.97 Cambridge 1977 1,140 6 777 0.68 Cambridge 1977 760 6 752 0.99 Cambridge 1977 830 28 726 0.87 Blox at Brightside RENT COMPS - PER MONTH 1980 680 12 697 1.02 Tiger Park 1969 1,200 102 675 0.56 Cambridge 1977 780 36 651 0.83 Total / Average 971 SF 522 $864 $0.89

1 BEDROOM UNITS (SORTED BY MARKET RENT) 3 BEDROOM UNITS (SORTED BY MARKET RENT) Property Name Built SF Units Market Rent Market / SF Property Name Built SF Units Market Rent Market / SF Tiger Plaza 1975 687 40 804 1.17 Tiger Plaza 1975 1,043 32 1,200 1.15 Tiger Plaza 1975 690 52 804 1.17 Cambridge 1977 1,500 6 1,045 0.70 The Villas on Brightside 1983 650 30 747 1.15 Cambridge 1977 1,400 6 1,002 0.72 Cambridge 1977 450 1 727 1.62 Cambridge 1977 950 1 877 0.92 Cambridge 1977 760 13 726 0.96 Blox at Brightside 1980 820 40 835 1.02 The Chateau 1971 618 24 709 1.15 Total / Average 994 SF 85 $1,000 $1.01 El Cid 1970 630 8 700 1.11 Cambridge 1977 660 16 651 0.99 4+ UNITS (SORTED BY MARKET RENT) El Cid 1970 525 70 645 1.23 Property Name Built SF Units Market Rent Market / SF Cambridge 1977 770 32 626 0.81 Blox at Brightside 1980 980 4 1,048 1.07 Cambridge 1977 550 32 614 1.12 Blox at Brightside 1980 920 7 949 1.03 Tiger Park 1969 900 4 588 0.65 Cambridge 1977 0 0 0 0.00 Cambridge 1977 650 26 576 0.89 Total / Average 942 SF 11 $985 $1.05 Cambridge 1977 585 33 551 0.94 Tiger Park 1969 500 5 550 1.10 Cambridge 1977 300 2 476 1.59 Total / Average 633 SF 388 $679 $1.07

2 BEDROOM UNITS (SORTED BY MARKET RENT) Property Name Built SF Units Market Rent Market / SF Tiger Plaza 1975 1,009 88 1,098 1.09 Cambridge 1977 1,340 6 977 0.73 Tiger Plaza 1975 889 48 953 1.07 The Villas on Brightside 1983 950 118 942 0.99 Tiger Plaza 1975 832 40 893 1.07 Cambridge 1977 980 16 824 0.84 The Chateau 1971 809 8 791 0.98 Cambridge 1977 800 8 777 0.97 Cambridge 1977 1,140 6 777 0.68 Cambridge 1977 760 6 752 0.99 Cambridge 1977 830 28 726 0.87 Blox at Brightside 1980 680 12 697 1.02 Tiger Park 1969 1,200 102 675 0.56 Cambridge 1977 780 36 651 0.83 Total / Average 971 SF 522 $864 $0.89

3 BEDROOM UNITS (SORTED BY MARKET RENT) Property Name Built SF Units Market Rent Market / SF Tiger Plaza 1975 1,043 32 1,200 1.15 THECambridge CHATEAU APARTMENTS1977 1,500 6 1,045 0.70 STIRLING INVESTMENT ADVISORS 21 Cambridge 1977 1,400 6 1,002 0.72 Cambridge 1977 950 1 877 0.92 Blox at Brightside 1980 820 40 835 1.02 Total / Average 994 SF 85 $1,000 $1.01

4+ UNITS (SORTED BY MARKET RENT) Property Name Built SF Units Market Rent Market / SF Blox at Brightside 1980 980 4 1,048 1.07 Blox at Brightside 1980 920 7 949 1.03 Cambridge 1977 0 0 0 0.00 Total / Average 942 SF 11 $985 $1.05 1 BEDROOM UNITS (SORTED BY MARKET PER SF) Property Name Built SF Units Market Rent Market / SF Cambridge 1977 450 1 727 1.62 Cambridge 1977 300 2 476 1.59 El Cid 1970 525 70 645 1.23 Tiger Plaza 1975 687 40 804 1.17 Tiger Plaza 1975 690 52 804 1.17 The Villas on Brightside 1983 650 30 747 1.15 The Chateau 1971 618 24 709 1.15 Cambridge 1977 550 32 614 1.12 El Cid 1970 630 8 700 1.11 Tiger Park 1969 500 5 550 1.10 Cambridge 1977 660 16 651 0.99 Cambridge 1977 760 13 726 0.96 Cambridge 1977 585 33 551 0.94 Cambridge 1977 650 26 576 0.89 Cambridge 1977 770 32 626 0.81 Tiger Park 1969 900 4 588 0.65 Total / Average 633 SF 388 $679 $1.07

2 BEDROOM UNITS (SORTED BY MARKET PER SF) Property Name Built SF Units Market Rent Market / SF Tiger Plaza 1975 1,009 88 1,098 1.09 Tiger Plaza 1975 832 40 893 1.07 Tiger Plaza 1975 889 48 953 1.07 Blox at Brightside 1980 680 12 697 1.02 The Villas on Brightside 1983 950 118 942 0.99 Cambridge 1977 760 6 752 0.99 The Chateau 1971 809 8 791 0.98 Cambridge 1977 800 8 777 0.97 Cambridge 1977 830 28 726 0.87 Cambridge 1977 980 16 824 0.84 Cambridge 1977 780 36 651 0.83 Cambridge RENT COMPS - PER SF 1977 1,340 6 977 0.73 Cambridge 1977 1,140 6 777 0.68 Tiger Park 1969 1,200 102 675 0.56 Total / Average 971 SF 522 $864 $0.89

1 BEDROOM UNITS (SORTED BY MARKET PER SF) 3 BEDROOM UNITS (SORTED BY MARKET PER SF) Property Name Built SF Units Market Rent Market / SF Property Name Built SF Units Market Rent Market / SF Cambridge 1977 450 1 727 1.62 Tiger Plaza 1975 1,043 32 1,200 1.15 Cambridge 1977 300 2 476 1.59 Blox at Brightside 1980 820 40 835 1.02 El Cid 1970 525 70 645 1.23 Cambridge 1977 950 1 877 0.92 Tiger Plaza 1975 687 40 804 1.17 Cambridge 1977 1,400 6 1,002 0.72 Tiger Plaza 1975 690 52 804 1.17 Cambridge 1977 1,500 6 1,045 0.70 The Villas on Brightside 1983 650 30 747 1.15 Total / Average 994 SF 85 $1,000 $1.01 The Chateau 1971 618 24 709 1.15 Cambridge 1977 550 32 614 1.12 4+ UNITS (SORTED BY MARKET PER SF) El Cid 1970 630 8 700 1.11 Property Name Built SF Units Market Rent Market / SF Tiger Park 1969 500 5 550 1.10 Blox at Brightside 1980 980 4 1,048 1.07 Cambridge 1977 660 16 651 0.99 Blox at Brightside 1980 920 7 949 1.03 Cambridge 1977 760 13 726 0.96 Cambridge 1977 0 0 0 0.00 Cambridge 1977 585 33 551 0.94 Total / Average 942 SF 11 $985 $1.05 Cambridge 1977 650 26 576 0.89 Cambridge 1977 770 32 626 0.81 Tiger Park 1969 900 4 588 0.65 Total / Average 633 SF 388 $679 $1.07

2 BEDROOM UNITS (SORTED BY MARKET PER SF) Property Name Built SF Units Market Rent Market / SF Tiger Plaza 1975 1,009 88 1,098 1.09 Tiger Plaza 1975 832 40 893 1.07 Tiger Plaza 1975 889 48 953 1.07 Blox at Brightside 1980 680 12 697 1.02 The Villas on Brightside 1983 950 118 942 0.99 Cambridge 1977 760 6 752 0.99 The Chateau 1971 809 8 791 0.98 Cambridge 1977 800 8 777 0.97 Cambridge 1977 830 28 726 0.87 Cambridge 1977 980 16 824 0.84 Cambridge 1977 780 36 651 0.83 Cambridge 1977 1,340 6 977 0.73 Cambridge 1977 1,140 6 777 0.68 Tiger Park 1969 1,200 102 675 0.56 Total / Average 971 SF 522 $864 $0.89

3 BEDROOM UNITS (SORTED BY MARKET PER SF) Property Name Built SF Units Market Rent Market / SF Tiger Plaza 1975 1,043 32 1,200 1.15 THEBlox atCHATEAU Brightside APARTMENTS1980 820 40 835 1.02 STIRLING INVESTMENT ADVISORS 22 Cambridge 1977 950 1 877 0.92 Cambridge 1977 1,400 6 1,002 0.72 Cambridge 1977 1,500 6 1,045 0.70 Total / Average 994 SF 85 $1,000 $1.01

4+ UNITS (SORTED BY MARKET PER SF) Property Name Built SF Units Market Rent Market / SF Blox at Brightside 1980 980 4 1,048 1.07 Blox at Brightside 1980 920 7 949 1.03 Cambridge 1977 0 0 0 0.00 Total / Average 942 SF 11 $985 $1.05 APPENDIX APPENDIX - CUSTOMER INFORMATION-LREC DISCLAIMER

CLIENT To exercise reasonable skill and care To treat all clients honestly. To provide factual information about the property. A client is one who engages a licensee for To keep information that could materially professional advice and services as their agent. harm your negotiation position confidential. To disclose all latent material defects in the property that are known to them. To present all offers in a timely manner. AGENCY To help the buyer compare financing options. To seek a transaction at the price and terms Agency means a relationship in which a real acceptable to you. To provide information about comparable estate broker or licensee represents a client by the properties that have sold, so both clients may client’s consent, whether expressed or implied, To account for all money or property recieved from make educated buying/selling decisions. in an immovable property transaction. An the client in a timely manner. agency relationship is formed when a real estate To disclose financial qualifications of the buyer/ licensee works for you in your best interest and Note: When representing you as a client, your agent lessee to the seller/lessor. represents you. Agency relationships can be formed does not breach their duty to you by showing with buyers/sellers and lessors/lessees. alternate properties to the buyers, showing To explain real estate terms. properties in which you are interested to other buyer clients, or receiving compensation based on a DESIGNATED AGENCY To help buyers/lessees arrange for property percentage of the property sales price. inspections. Designated agency means the agency To explain closing costs and procedures. relationship that shall be presumed to exist when DUAL AGENCY a licensee engaged in any real estate transaction, A dual agent may not disclose: is working with a client, unless there is a written Dual agency means an agency relationship in which agreement providing for a different relationship. a licensee is working with both buyer and seller or Confidential information of one client to the both landlord and tenant in the same transaction. other, without the client’s permission. The law presumes that the real estate licensee you However, such a relationship shall not constitute work with is your designated agent, unless you have a dual agency if the licensee is the seller of property The price the seller/lessor will take other than the written agreement otherwise. that he owns or if the property is owned by a real listing price, without the permission of the seller/ estate business of which the licensee is the sole lessor. No other licensees in the office work for you, proprietor and agent. A dual agency relationship unless disclosed and approved by you. shall not be construed to exist in a circumstance in The price the buyer/lessee is willing to pay, without which the licensee is working with both landlord the permission of the buyer/lessee. You should confine your discussions of buying/selling and tenant as to a lease which does not exceed a to your designated agent or agents only. term of three years and the licensee is the landlord. Dual agency is allowed only when informed consent is presumed to have been given by DUTIES THE DESIGNATED AGENT OWES A CLIENT any client who signed the dual agency disclosure form prescribed by the Louisiana Real Estate • To obey all lawful requests Commission. Specific duties owed to both buyer/ • To promote your best interest seller and lessor/lessee are:

THE CHATEAU APARTMENTS STIRLING INVESTMENT ADVISORS 24 APPENDIX - CUSTOMER INFORMATION-LREC DISCLAIMER

CONFIDENTIAL INFORMATION Under Louisiana’s real estate agency law, a licensee Setting an appointment to view a property. engaged in any real estate transaction shall be considered to Confidential information means information obtained be representing the person with whom he/she is working, Responding to questions from persons walking into a by a licensee from a client during the term of a brokerage unless there is a written agreement between the broker and licensee’s office concerning brokerage services offered or agreement that was made confidential by the written request the person providing that there is a different relationship or particular properties. or written instruction of the client or is information the the licensee is performing only ministerial acts on behalf of disclosure of which could materially harm the position of the the person. Accompanying an appraiser, inspector, contractor, or similar client, unless at any time any of the following occurs: third party on a visit to a property. A real estate broker and his/her associated licensees can • The client permits the disclosure by word or conduct. provide valuable real estate services, whether in the form Describing a property or the property’s condition, in response • The disclosure is required by law or would reveal serious of basic customer services, or through client-level agency to a person’s inquiry. defect. representation. The services you expect will depend upon • The information becomes public from a source other the legal relationship you establish with the company. It is Completing business or factual information for a person than the licensee. important for you to discuss the information contained inside represented by another licensee on an offer or contract with the real estate licensee, and to agree on whether your to purchase. Confidential information shall not be considered to be about business relationship will be that of a customer or a client, the physical condition of the property. and if a client, the type of agency relationship that will be in Showing a person through a property being sold by an owner your best interest. on his/her own behalf. Confidential information can be disclosed by a designated agent to his broker for the purpose of seeking advice or Referral to another broker or service provider. assistance for the benefit of the client. CUSTOMER

The customer is a person who is provided services by a real Your signature only confirms that you have received CONCLUSION estate licensee, but who is not a client of the real estate information on agency law and in no way enters you into a licensee because the licensee is only performing ministerial contract. The Louisiana Real Estate License Law and the Louisiana Real acts. In this case, the real estate licensee is not acting as an Estate Commission Rules and Regulations require a real estate agent. licensee to provide you with this informational pamphlet on The actual services you receive from a real estate licensee Buyer(s)/Lessee(s) ______brokerage agency relationships. depend on the arrangement that is established between you and the licensee. For additional information on agency disclosure matters, visit Licensees are allowed to provide ministerial ______the Louisiana Real Estate Commission website at: www.lrec. acts to customers without creating an agency gov relationship; ministerial acts are acts that a licensee may perform for a person that are informative in Seller(s)/Lessor(s) ______nature. Examples include, but are not limited to: CUSTOMER INFORMATION ______As real estate transactions have become more complex and Responding to phone inquiries by persons as to the varied, real estate brokerage arrangements have evolved to availability and pricing of brokerage services or pricing meet the changing needs of customers entering this market. on a particular piece of property or location of a property. Licensee ______This pamphlet provides a description of the different types of brokerage arrangements available to customers, so that they Conducting an open house and responding to questions may choose the brokerage services best suited to their needs. about the property from a person. ______

This information is provided in accordance with R.S. 37:1455 (A)(21) and R.S. 37:1467 to help you be more informed in the buying, selling, or leasing of real estate. In whatever manner you choose to be represented, the goal is generally the same. The real estate licensee is trying to assist you in the sale, purchase, or lease of real estate upon terms acceptable to all parties. For additional information, you may contact the Louisiana Real Estate Commission at 1-800-821- 4529 or 1-225-925-1923.

THE CHATEAU APARTMENTS STIRLING INVESTMENT ADVISORS 25 109 Northpark Boulevard, Ste. 300 9018 Jefferson Highway Covington, LA 70433 Baton Rouge, LA 70809 [office] 985-898-2022 [office] 225-298-1250 [fax] 985-898-2077 [fax] 225-298-1251 StirlingProperties.com mmcre.com