HILLTOP VILLAS AFFORDABLE APARTMENTS 601-625 North 13Th Street, Las Vegas, Nevada

OFFERING MEMORANDUM HILLTOP VILLAS AFFORDABLE APARTMENTS 601-625 North 13th Street, Las Vegas, Nevada

DOWNTOWN LAS VEGAS NEIGHBORHOOD CONFIDENTIALITY AGREEMENT

1 Purpose. Company and Recipient wish to explore a potential business opportunity of mutual interest and in connection with this opportunity, Company may disclose to Recipient certain confidential technical and business information, which Company desires Recipient to treat as confidential. 2 “Confidential Information” means (a) any information disclosed by Company to Recipient, either directly or indirectly, in writing, orally or by inspection of tangible objects, including, without limitation, algorithms, business plans, business systems, customer data, customer lists, customer names, designs documents, drawings, logos, proposed trademarks or similar intellectual property, engineering information, financial analysis, forecasts, formulas, hardware configuration information, know-how, ideas, inventions, market information, marketing plans, processes, products, product plans, research, specifications, software, source code, trade secrets or any other information which is designated as “confidential,” “proprietary” or some similar designation (collectively, the “Disclosed Materials”) and (b) any information otherwise obtained, directly or indirectly, by Recipient through inspection, review or analysis of the Disclosed Materials. Confidential Information may also include information of a third party that is in the possession of Company and is disclosed to Recipient under this Agreement. Confidential Information shall not, however, include any information that (i) was publicly known and made generally available in the public domain prior to the time of disclosure by Company; (ii) becomes publicly known and made generally available after disclosure by Company to Recipient through no action or inaction of Recipient; (iii) is already in the possession of Recipient at the time of disclosure by Company as shown by Recipient’s files and records immediately prior to the time of disclosure; (iv) is obtained by Recipient from a third party lawfully in possession of such information and without a breach of such third party’s obligations of confidentiality; or (v) is independently developed by Recipient without use of or reference to Company’s Confidential Information, as shown by documents and other competent evidence in Recipient’s possession. 3 Non-use and Non-disclosure. Recipient agrees not to use any Confidential Information for any purpose except to evaluate and engage in discussions concerning a potential business relationship between Recipient and Company. Recipient agrees not to disclose any Confidential Information to third parties or to employees of Recipient, except to those employees who are required to have the information in order to evaluate or engage in discussions concerning the contemplated business relationship. Recipient shall not reverse engineer, disassemble or decompile any prototypes, software or other tangible objects which embody Company’s Confidential Information and which are provided to Recipient hereunder. 4 Maintenance of Confidentiality. Recipient agrees that it shall take all reasonable measures to protect the secrecy of and avoid disclosure and unauthorized use of the Confidential Information. Without limiting the foregoing, Recipient shall take at least those measures that Recipient takes to protect its own most highly confidential information and shall have its employees who have access to Confidential Information sign a non-use and non-disclosure agreement in content substantially similar to the provisions hereof, prior to any disclosure of Confidential Information to such employees. Recipient shall not make any copies of Confidential Information unless the same are previously approved in writing by the Company. Recipient shall reproduce Company’s proprietary rights notices on any such approved copies, in the same manner in which such notices were set forth in or on the original. Recipient shall immediately notify Company in the event of any unauthorized use or disclosure of the Confidential Information. 5 No Obligation. Nothing herein shall obligate Company or Recipient to proceed with any transaction between them, and each party reserves the right, in its sole discretion, to terminate the discussions contemplated by this Agreement concerning the business opportunity; provided, however, such termination shall in no way diminish, terminate or otherwise affect Recipient’s non-disclosure and confidentiality obligations hereunder. 6 No Warranty. ALL CONFIDENTIAL INFORMATION IS PROVIDED “AS IS.” COMPANY MAKES NO WARRANTIES, EXPRESS, IMPLIED OR OTHERWISE, REGARDING ITS ACCURACY, COMPLETENESS OR PERFORMANCE. 7 Return of Materials. All documents and other tangible objects containing or representing Confidential Information and all copies thereof which are in the possession of Recipient shall be and remain the property of Company and shall be promptly returned to Company upon Company’s request. 8 No License. Nothing in this Agreement is intended to grant any rights to Recipient under any patent, mask work right or copyright of Company, nor shall this Agreement grant Recipient any rights in or to Confidential Information except as expressly set forth herein. 9 Non-Circumvention. Upon execution of this Agreement, Recipient agrees to refrain from, directly or indirectly, circumventing Company’s interest in any business opportunity which it becomes aware of as a result of any Confidential Information. Recipient is not under any duty or obligation to disclose or offer any business opportunity to the other Company that is unrelated to the business of Company. 10 Relationship Between the Parties. Nothing contained in this Agreement shall be deemed to constitute a partnership or joint venture between Recipient and Company to give rise to any license or right of either of the parties to any information owned or controlled by the other Party. 11 Term. This Agreement shall survive until such time as all Confidential Information disclosed hereunder becomes publicly known and made generally available through no action or inaction of Recipient. 12 Remedies. Recipient agrees that any violation or threatened violation of this Agreement will cause irreparable injury to the Company, entitling Company to obtain injunctive relief in addition to all legal remedies, and should Company have to retain the services of an attorney to enforce its rights hereunder as against Recipient, and Company is the substantially prevailing party, then Company shall be awarded its costs and legal fees to the fullest extent permitted by applicable law. 13 Recipient Information. Company does not wish to receive any confidential information from Recipient, and Company assumes no obligation, either express or implied, with respect to any information disclosed by Recipient. 14 Miscellaneous. This Agreement shall bind and inure to the benefit of the parties hereto and their successors and assigns. This Agreement shall be governed by the laws of the State of Nevada, without reference to conflict of laws principles. This document contains the entire agreement between the parties with respect to the subject matter hereof. Any failure to enforce any provision of this Agreement shall not constitute a waiver thereof or of any other provision hereof. This Agreement may not be amended, nor any obligation waived, except by a writing signed by both parties hereto.

OFFERING MEMORANDUM | HILLTOP VILLAS APARTMENTS 02 TABLE OF CONTENTS

04 EXECUTIVE SUMMARY Property Summary Property Photos Floor Plans Aerials Annual Property Operating Data Nevada Housing Division

14 INCOME APPROACH TO VALUE Pro Forma Financial Model Nevada Housing Division

20 COMPARABLES Rent Comparables Overall Construction Summary Under Construction Properties Affordable Housing Sales Activity Affordable Housing Sale Comparables Sales Pricing Sales Volume Cap Rates

33 DEMOGRAPHICS

35 DOWNTOWN CENTRAL LAS VEGAS MULTIFAMILY Overview Vacancy

38 LAS VEGAS MULTIFAMILY MARKET REPORT Overview Vacancy Economy

43 DOWNTOWN PROJECT

45 LAS VEGAS OVERVIEW

03 EXECUTIVE SUMMARY

OFFERING MEMORANDUM | HILLTOP VILLAS APARTMENTS 04 PROPERTY No. of Units: 111 Stories: 2 PROPERTY SUMMARY Avg. Unit Size: 876 SF Buildings: 31 Hilltop Villas is in the Las Vegas Downtown Submarket. Easy access to Rent Type: Affordable US-95 & I-15 freeways, public transportation, and shopping. Hilltop Villas Year Built: 1969 Parking: 32 Spaces; 0.3 per Unit is close to work, schools, dining, and entertainment such as the Fremont Assessor’s Parcel 139-26-413-003, Street Experience, and many hotels, casinos. The property offers 2 and Number* 139-26-413-004, 139-26-412-016 3-bedroom apartments equipped with central heating and air conditioning, *The reader should note that APN -016 is noncontiguous and is separated by 12th Street. laundry facilities, children’s play area, and assigned parking. PRICE: $6,921,654 APARTMENT FEATURES ENTERTAINMENT • Refrigerator • Marriage Can Be Murder • Air Conditioning • Le Reve • Electric Range • KÀ by Cirque du Soleil CAP RATE: • Garbage Disposal • Michael Jackson One by Cirque du Soleil • All Utilities Included • Neon Museum 5.4% • Fremont Street Experience Estimated T 1 Annualized as of 07/30/2018 SHOPPING • The Market EDUCATION AND EMPLOYMENT • Albertsons Grocery Store • The D Las Vegas PRICE/UNIT: • Vons • Downtown Grand Hotel • Smith’s • Downtown Project $61,800 • Mariana’s • Howard E Hollingsworth Elementary School Buyer must be approved by the NHD • John C Fremont Middle School DINING • Rancho High School The property is being offered through the • Chart House Nevada Housing Authority’s (NHD) Qualified • Grotto Italian Ristorante Contract Sale Program. Prospective Buyers • Carson Kitchen must maintain and operate the property in • Magnolia’s Veranda accordance with the Low Income Housing Tax • Chicago Joe’s Restaurant Credit Program ( LIHTC), administered by the Nevada Housing Authority ( NHD)

The subject property is encumbered by a land use restriction agreement (LURA) and is 160% affordable with all units rent restricted, serving tenants with less than 60% of the area median income.

OFFERING MEMORANDUM | HILLTOP VILLAS APARTMENTS 05 PROPERTY SUMMARY

ASKINGASKING RENTSRENTS PERPER UNIT/SF UNIT/SF VACANCYVACANCY 12 MONTH12 NETMONTH ABSORPTION NET ABSORPTION Current:Current:ASKING RENTS PER$669$669 UNIT/SF $0.76 $0.76 /SF /SF Current:VACANCYCurrent: 4.2%4.2% 5 Units 5 Units Current:12 MONTHCurrent: NET ABSORPTION1 Unit 1 Unit Current: $669 $0.76 /SF Current: 4.2% 5 Units Current: 1 Unit LastLast Quarter: Quarter: $669$669 $0.76 $0.76 /SF /SF LastLast Quarter: Quarter: 4.2%4.2% 5 Units 5 Units CompetitorCompetitor Total: (84) Total: Units (84) Units Last Quarter: $669 $0.76 /SF Last Quarter: 4.2% 5 Units Competitor Total: (84) Units YearYear Ago: Ago: $617$617 $0.70$0.70 /SF /SF YearYear Ago: Ago: 4.2% 4.2% 5 Units5 Units CompetitorCompetitor Avg: (4.9) Avg: Units (4.9) Units Year Ago: $617 $0.70 /SF Year Ago: 4.2% 5 Units Competitor Avg: (4.9) Units Competitors:Competitors: $713$713 $0.89$0.89 /SF /SF Competitors:Competitors: 11.6% 11.6% 524 Units524 UnitsSubmarketSubmarket Total: 309 Total: Units 309 Units Competitors: $713 $0.89 /SF Competitors: 11.6% 524 Units Submarket Total: 309 Units Submarket:Submarket: $785$785 $1.01$1.01 /SF /SF Submarket:Submarket: 5.1% 5.1% 2,139 Units2,139 UnitsSubmarketSubmarket Avg: 0.3 Avg: Units 0.3 Units Submarket: $785 $1.01 /SF Submarket: 5.1% 2,139 Units Submarket Avg: 0.3 Units

UNIT BREAKDOWN UNITUNIT BREAKDOWN BREAKDOWN Unit Mix Availability Avg Asking Rent Avg Eective Rent UnitUnit Mix Mix AvailabilityAvailability Avg AskingAvg Rent Asking Rent Avg EectiveAvg Rent Eective Rent Bed Bath Avg SF Units Mix % Units Percent Per Unit Per SF Per Unit Per SF Concessions BedBed Bath Avg Avg SF SF UnitsUnits Mix %Mix %Units UnitsPercent PercentPer Unit Per UnitPer SF PerPer SF Unit PerPer Unit SF Concessions Per SF Concessions 2 1 840 96 81.4% 0 0.0% $650 $0.77 $647 $0.77 0.5% 2 1 840 96 81.4% 0 0.0% $650 $0.77 $647 $0.77 0.5% 23 2 1 1,034 840 22 96 18.6% 81.4% 0 0 0.0% 0.0% $750 $650 $0.73 $0.77 $743 $647 $0.72 $0.77 0.9% 0.5% 33 2 21,034 1,03422 2218.6% 18.6%0 00.0% 0.0%$750 $750$0.73 $0.73$743 $743$0.72 $0.720.9% 0.9% Totals Avg SF Units Mix % Units Percent Per Unit Per SF Per Unit Per SF Concessions Totals Avg SF Units Mix % Units Percent Per Unit Per SF Per Unit Per SF Concessions TotalsAll 2 Beds Avg840 SF 96 Units 81.4% Mix % 0 Units 0.0% Percent $650 Per Unit $0.77 Per SF $647 Per $0.77Unit Per 0.5% SF Concessions All 2 Beds 840 96 81.4% 0 0.0% $650 $0.77 $647 $0.77 0.5% AllAll 2 3 Beds Beds 1,034840 22 96 18.6% 81.4% 0 0 0.0% 0.0% $750 $650 $0.73 $0.77 $743 $647 $0.72 $0.77 0.9% 0.5% All 3 Beds 1,034 22 18.6% 0 0.0% $750 $0.73 $743 $0.72 0.9% AllTotals 3 Beds 8761,034 118 22 100% 18.6% 0 0 0.0% 0.0% $669 $750 $0.76 $0.73 $665 $743 $0.76 $0.72 0.6% 0.9% Totals 876 118 100% 0 0.0% $669 $0.76 $665 $0.76 0.6% Estimate Updated June 27, 2018 Totals 876 118 100% 0 0.0% $669Estimate $0.76 $665Updated June $0.76 27, 2018 0.6% Estimate Updated June 27, 2018 SITE AMENITIES SITE AMENITIES Laundry Facilities Laundry Service Playground Laundry Facilities Laundry Service Playground SITEProperty AMENITIES Manager on Site LaundryProperty Facilities Manager on Site Laundry Service Playground PropertyUNIT AMENITIES Manager on Site AirUNIT Conditioning AMENITIES Cable Ready Disposal Air Conditioning Cable Ready Disposal UNITHeating AMENITIES Range Refrigerator Heating Range Refrigerator Air Conditioning Cable Ready Disposal Heating Range Refrigerator

OFFERING MEMORANDUM | HILLTOP VILLAS APARTMENTS 06 PROPERTY PHOTOS

OFFERING MEMORANDUM | HILLTOP VILLAS APARTMENTS 07 FLOOR PLANS

3 Bedroom 2 Bath ±1,038 SF

OFFERING MEMORANDUM | HILLTOP VILLAS APARTMENTS 08 95 APEX INDUSTRIAL PARK

KYLE CANYON RD KYLE SPRING SILVERSTONE IRON CANYON MOUNTAIN MOUNTAIN 157 GATEWAY RANCH RANCH GRAND TETON DRIVE PARK HIGHLANDS SEVERENCE LANE ALIANTE 15

PROVIDENCE ELKHORN ROAD 215 93

N TENAYA N WAY S

ELKHORN L

L A 95 OSS

DEER SPRINGS WAY M B

SPRINGS E R

B L

V D

D W CENTENNIAL PARKWAY LAS VEGAS

MOTOR SPEEDWAY 604

N JONES N

215 EL DORADO RO ECOS

D ECATURBLV W ANN ROAD ANN ROAD

S C

I LAS VEGAS MAPR A

A SHADOW PAINTED DESERT M

LOS I

O UNION PACIFIC RR D O WASHBURN RD N CREEK

A PRADOS S

N 5 L

IVE

RANCHO N TH

REE O

R NELLIS AFB

W LONE MOUNTAIN ROAD T E STREET

T DEL NORTE RANCHO 15 ALTA MIRA CRAIG ROAD

CRAIG ROAD 573

I F

F W ALEXANDER ROAD 93

NELLIS AFB

H N RAINBOWN BLVD

BUFFALO DRIVE A

D O

W NORTH VD

D CCSN

R AS BL M CHEYENNE

I 599 G

V A E E CAMPUS V LAS VEGAS RTIN L DURANGO LAS N

W CHEYENNE AVENUE HILLS U LOSEE RD. TH E CHEYENNE AVENUE 574 ER

KING JR B

SUN CITY LAS VEGAS LV SUNRISE HIGHLAND PALM DESERT E EVANS AVE SHORES NORTH LAS VEGAS VISTA FALLS VALLEY AIRPORT D

NELLIS BLVD 147 SMOKE RANCH RO AD ST BELMONT E CAREY AVE VD EAGLE 95 E LAKE MEAD BL CREST W LAKE MEAD BLVD N E LAKE MEAD BLVD 147 RAN

147 N

C B

HO R UC

N E

VEGAS DRIVE DR E E OWENS AVENUE

S T PECOS ROAD

A LAMB BLVD LAMB

STER

TPC AT LAS VEGAS H

N AVE 15 GTON AVE L SUMMERLIN W WASHINGTON DRIVE MUNICIPAL E WASHIN YW

RKWAY O SUMMERLIN SUMMERLIN PA O

TPC AT V E BONANZA ROAD D ANGEL WESTCLIFF DRIVE 95 D CANYONS E LAS VEGAS S E R T PARK DESERT PINES NU F ART AVE E O ALTA DRIVE STEW O T 515 93 H

I L BADLANDS L S UNIVERSITY RED ROCK NATIONAL AREA CONSERVATION

D R W CHARLESTON BLVD MEDICAL CENTER E CHARLESTON BLVD

T O 159

W FREMON

CCSN

C CHARLESTON L

E L T

N CAMPUS

Y S

T PECCOLE T

R DESERT

I 607 HILLTOP VILLAS E

D CANYON W

R RANCH 595

E ST LOUIS AVE

V R ROSE

E O

GATE L N A

W D SAHARA AVE OS

215 589 F

RED E

BUFFALO I

E SAHARA AVE I

Z Z S ROCK VEGAS VALLEY DRIVE T

THE LAKES

DRIVE S J D O LAS VEGAS A

612 HOL E “THE STRIP” ROYAL

BL CC E DERTES INN ROAD LYW VD LINKS 147

W DESERT INN ROAD SPRING MOUNTAIN RD INDUSTRIAL RO O O

WYNN BOULEVARD D LAKE

S RAINBOW BLVD B

MALL L LAS VEGAS VD 604 95 STALLION BEAR’S FLAMINGO ROAD FLAMINGO ROAD MOUNTAIN

502 N DECATUR P REFLECTION BEST H ARADI UALAPAI DESERT SPRINGS BAY S L SPRING E HOSPITAL A SIENA EAST K E

RD WAY UNLV L AS VALLEY 582 V BLVD E G TROPICANA AVENUE LAS VEGAS A S

TROPICANA AVENUE M P

A SUNRISE K

593 R

Y BO W

L S Y A

S N U

A COLONY D LDE N

SPANISH TRAIL D

PA H R B I R HACIENDA AVE L R K O V L HWY

W A A D

R L A B

O L Y E

SPRING E N

Y T

VALLEY THE V 15 B

I L

HOSPITAL E E RUSSELL ROAD

V W D

P FALLS

FO R B

BUFFALO DRIVE RO L C EL O

DUR RUSS

R W O

A MC CARRAN

BALI R

APACH O A A

N Y D A GO GO INT’L AIRPORT KW 595 HAI D PAR EROAD MEA DR TUSCANY E LAKE

I WHITNEY V E E SUNSET ROAD

W SUNSET RO AD S RANCH SOUTHERN PEC

TOWN N

HILLS HOSPITAL

SUNSET S

OS TE

SQUARE PHAN 215 PARK E SUNSET ROAD

RO IE STRE IE

ST. ROSE V 564 W ARBY AVE A WILDHORSEL N SAN MARTIN L E A R HOSPITAL V R ET E EASTGATE RD S EASTERNS AVENUE O

R W WARM SPRINGS ROAD 93 RACETR Y

OFFERING MEMORANDUM | HILLTOP VILLAS APARTMENTS D O WARM SPRINGS ROAD E

G 09

D BLVD RANDE UPRR R

RICHARD CK CORONADO GREEN SON DRIVE

NEVADA ROAD

515 C

E N

RANCH T

TRAILS E

VALLEY 582 R

UNION PACIFIC RR PACIFIC UNION ST GIBSON Rd.

S WINDMILL LANE AMERICAN PACIFIC DR RHODES WINDMILL LN R ST. ROSE A 95

INBO DOMINICAN HOSPITAL RANCH BUR

W B W KHOLD SOUTH E R BLVD S W WIGWAM AVE LVD W LEGACY A E T

S D L VA ER S A N

DEAN DEAN MARTIN DR W S S V AG T E 607 EN

C E

E E PEBBLE ROAD N

A S

GAS BLVD GAS T

UR BL BE W HENDERSON

MA M

VD S

MA RYLA

F D 215 G

I A 160 BLUE DIAMOND ROAD C

R G

E PKWY I E DG A R I

R C N

N VE E

D O W

D N Z

S S I

R BLACK AY

V FORT FORT

P O S JONE S

A H KWAY AR

SOUTHFORK L W E MOUNTAIN AP EQUESTRI Y AN DR

GOMER ROAD

BLVD A

HE W SILVERADO RANCH BLVD

FOO

A T

A DRAGON RIDGE

H L

OOS

LL MOUNTAINS EDGE PKWY B CCSN

U S

515 A HENDERSON CAMPUS

RD D

FA SOUTHERN ST. ROSE R L DOMINICAN HOSPITAL DEL WEBB O

DRI HIGHLANDS SIENA CAMPUS W CACTUS AVE MACDONALD RANCH

W CACTUS AVE SILVERADO SUN CITY GREENWAY RD V COLLEGE COLLEGE DR E 146 MISSION DR RANCH SUNRIDGE WEST CANYON 93 SHINNECOCK HILLS AVE ay SO U arkw E PARADISE HILLS DR TH P MACDONALD ER se N MOUNTAIN’S HI Ro GH t HIGHLANDS L S S RAILROAD AN E EDGE D V S E 604 N SEVEN HILLS PA R HENDERSON H PASS K I W L LS A Y EXECUTIVE DR RIO SECCO AIRPORT

ANTHEM 93

VOLUNTEER BLVD REVERE DEL WEBB’S 95 15 ANTHEM

A AY NTHEM PARKW Vicinity Map HILLTOP VILLAS APARTMENTS

July 09, 2018

HILLTOP VILLAS APARTMENTS

BOOK T20S R61E 26 S 2 SW 4 139-26-4 Michele W. Shafe - Assessor 099 100 101 102 103 No liability is assumed for the accuracy of the data deliniated herein. 8 4 8 4 PARCEL BOUNDARY ROAD PARCEL NUMBER 6 5 4 3 2 1 CONDOMINIUM UNIT 001 126 Information on roads and other non-assessed parcels may be obtained 125 124 123 122 5 1 5 1 from the Road Document Listing in the Assessor's Office. SUB BOUNDARY AIR SPACE PCL 001 PARCEL NUMER 121110987 PM/LD BOUNDARY ACREAGE 137 18 17 16 15 1314 RIGHT OF WAY PCL 1.00 138 139 140 141 6 2 ROAD EASEMENT 2 6 19 23222120 24 This map is compiled from official records, including surveys and deeds, MATCH / LEADER LINE SUB-SURFACE PCL 202 PARCEL SUB/SEQ NUMBER 164 163 161162 160 30 29 28 27 26 25 7 3 7 3 but only contains the information required for assessment. See the HISTORIC LOT LINE PB 24-45 PLAT RECORDING NUMBER NOTES recorded documents for more detailed legal information. HISTORIC SUB BOUNDARY 31 3635343332 L=536.74 BLOCK NUMBER 175 176 177 178 179 8 4 8 4 USE THIS SCALE(FEET) WHEN MAP REDUCED FROM 11X17 ORIGINAL 5 HISTORIC PM/LD BOUNDARY 428.7 L=73.3 PARCEL MAP MAP LEGEND 5 LOT NUMBER 475.68 SECTION LINE 5 51 1 0 100 200 400 600 800 GL5 GOV. LOT NUMBER Scale: 1" = 200 ' Rev: 02/09/2011

R=422.82

59.79 001 L=144.51 5.44 303 2 006

42.92 329.55 203 200 80.19 102 30 302.13 1042.66 007 346.62 165.29 HARRIS AVE 348.69 019 001 018 67.5 62 62 61.5 61.5 65.72 80 68 63 022 021 90 R=20 140 20 140 80 140 20 140 80 140 096 097 098 099 100 101 102 103 104 105 106 107 108 109 110 111 110

109 16

50 50

50 50 50

50 002 003 004

109.5 110.5

111.01 111.5 109.67 109.84 111.22 110.67 110.83 110.17 110.33

079 080 109.17 109.34 111.38 111.76 111.63 001 105 102 108.5 108.67 108.84 1 22 1 22 1 108.32 145 126.49 130 131 132 133 134135 136 137 138 139140 141 142 143 144 223 222 219220221 7 5 67.45 63 63 005 . 62 62 62 62 62 62 62 61.5 61.5 61.5 61.5 61.5 61.5 61.5 65.72 68 63 63 50 6

50 12 50 002 104 50 103 078 081 5 2 2 21 2 21 2 30 60 60 MC WILLIAMS AVE GREATER LAS VEGAS MC WILLIAMS AVE 30

50 50 50 50

50 50 011 003 3 042 20 077 082 ADDITION NO 2 034 035 3 20 3 87.66 74 77.5 65 65 65 63 63 63 63 70 71 103.22 67 62 67 67 111 77 039 5 95.1 30 30 60

36.2375.51 PM 100-38 72 72

6 40 50

50 50 50 050 50 81.1 98 98 004 19 043 076 083 001 102 98 4 4 74.94 123 104 105 106

4 19 006 64.94 045 046 047 048 049

040 041 042 043 044 102

331.78 14 76 174175 105 122 173 161 114115 116 117 118119 120 121 67 62

66 113 67

50 67 50 50 036 50 84

4 005 038 044 075 084 66

7 66 98 68.23 5 18 5 98

98.39 5 18 051 185.18

124 62 12 92.8 12 103 74.6 62 002 74.6 59 107 63

50 018 50 50 11 176 50 13 031 187 38 38 085 3 3 60 045 074 160

037 6 6 102 106.23 037 6 17 102 90.09 8 17 039 038 037 036 035 034 033 032 102

210.03 5.1 62.02 TANKELS 114.11 006 3 5 PB 7-57 104 120.32030 052 108109 105 33.3 125

60.51 1 112 110111 107 106 102

50 50 62

50 50 50 NORTH 63 073 086 77.5 65 65 65 63 63 63 108 70.85 046 7 16 036 7 16 7 003 74.6 103 177 186 2 038 ADDITION 12 95.14 13 159 008 1 9 60.62 62.67 2 50.93 7 38.57 129.99 . 9

72 60 60 . 0 MARGARET AVE 50 50

4 50 50 053

4 78 62 62 5050

71 072 087 62 59.99 71 047 89.56 9 007 035 6 126 8 15 8 15 8 029 101 109 63 = 415 178 185 R 102

70 103 158 004 74.6 77.5 65 65 65 65 65

85 028 85 027 11 50

50 60

50 50 100 87.33 048 071 088 008 14 034 9 14 9 74 66 66 66 101112 085 054 62

9 62 63 63 80 71 56 100 110 63

102 127 091 090 089 088 087 086 102 96 101028 179 184 102.63 414

SEVENTEENTH ST 157

50 50

WILSON AVE 50 50 50 50 019 92 93 94 95

089 102.39 005 74.6 90 91 50 009 033 049 070 156.77

10 13 10 13 10 10 77.5 65 65

5 66 510 64 74 BILTMORE ADDITION 0.38 64

016 055 62 63 62 63

084 63 73 60 60 45 100 72.5 100 97 027 128 099 111 010 105.42 50

50 009 180 183

50 50 4510 101.98 010 050 45 2.5 100 156

12 032 090 9 70 70 11 140 140 11 140 069140 11 117.54 75 10 12 2 7 092 98

. 18 110 13 102 10 89 080

VAC 950629:1253 VAC 816:775634 5 006

74.6 110

100 079 100 081 082 025 026 R=25 6

85 71

9 70 68

68 74

5 74 74 74 66

VAC 1732:1691733 68 PB 1-57 1 = 104.35 57.84 083 026 056 098 112 104.72 129 181 182 R

7 8 9 10 80 69 68 98 99 002 WILSON AVE 98 48 78.54 42.99 53 60 60 60 1 57.5 65 103 100 103.22 155 410 VAC 1732:1691733 SIXTEENTH ST 1045.2 GARDEN 175.16 093 BRUCE ST 280.39 412 FOURTEENTH ST 88

STEWART ADDITION 10 10

007 74.6 L=35.3 72 WILSON AVE 53.9 140 140 140 140 70 47.46 102 60 8 130 078 WILSON AVE PB 4-87 43.47 50 50 50 1 011 22 031 1 051 22 068 50 1 24 1005 72 TERRACE 98 53.9 70 70 NINTH ST 57.5 65 103.22 2248 091 092 THIRTEENTH ST 094 100 103.22 154 87 101.92 67

104.35 57.84 67 67 67 30 008 67 75 50 50 74.6

50 75 502 50 012 21 030 2 052 21 067 2 23 2006 TANKELS 073 025 057 073 7 67 151 98 35 074 54 110 075 110 074 77 153

PB 1-94 077 076 102

75 70 NORTH 70 152 101.92 095 104.42 50 54 50 NO 1 50 20 053 20 066 3 3007 73 74 75 76 41.6 .6 013 029 3 86 62 62

3 22 63 MARYLAND PKWY 63 72.5 100 65 63 072

100 67 024 058 54 67 805 ADDITION 009 74 072 36 66 150 093 6 77.5 65 65 78

50 50 4 054 19 065 504 50 50 4008 AMD 4 100 19 028 21 98 097 146

67 67 79.44 107 63 63 63 071

107 065 066 067 068 069 070 023 65059 149 148 147 75

010 75 37 79.44 TWELFTH ST 74.6 50 50 50 071 60 98 505 50 101 18 027 5 055 18 064 5 094 20 5009 017 79 32 5 85 828384 8081 100 6 012 77.5 65 65 65 65 65 103.22 60 63 6 63 RYAN AVE 550

50 50 50 50 50 33 022 76 060 50 50 003 004 50 015 17 026 6 056 17 063 6 095 010 38 64 60 6 2 19 RYAN AVE 004 60 103.22 57.32 TENTH ST 011 74.6

4 535.08 65.87 ELEVENTH ST 550 57.32 91.22 61.39 103 43 40 4 62.52

545.10 35.88 147.83

50 50 50 50 67 67 67 62 62 62 29

50 7 79 7 016 16 025 7 057 16 062 7 096 18 011 63061 067 132.75 021 109.2 19 141.12 413 109 068 012 63.91 64.85 107 74.6 110.89 50 53 50 107 95 50 8 017 15 024 8 058 061 8 097 17 8012 3 012 013 014 015 016 017 018 019 39 140 15 020 6162 062 61 066 48 47 46 42434445 41 40 18 20 21 22 139.86 PT14 PB 5-14 62 124 54.38 80.63

63.21 61.75

47 50 50 50 50

50 9 109.99 9 018 14 023 9 059 060 9 098 16 013 127.9 81 65 139.86 62 77.93 74.6 PT14 013 74.6 9 2 063 065 123.81 RESUBDIVISION OF PB 2-50 61 17 50 50 LOTS 10 11 12 13 50 10 019 13 022 10 15 10014 003 004 005 104.8 67.06 122 69.91 125 011 010 009 008 007 006 005 004 003 002 105.65 063

001 124.6

002 80 124.7 124.43 124.34 124.25 124.16 124.08 124.52 001

80 099 124.89 124.79 87.81 75.06 PB 2-50 14 30 014 64.95 064 064

30 30 55 57 58 59 67.28 15 R=25 11 11 54 56 68.99 14 R=450 50 411 51 52 53 11 020 12 021 30 29 28 27 26 25 L=35.39 L=35.35 015 1 49 50 60 80 16 103 62.75 65 R=460 20 053 140 20 114.95 46.67 46.67 20 46.6746.67 46.67 97.84 60 102 56.58 101.13 74.01 79 67 67 67 62 62 62 62 62 62 62 116 020 013 014 104.49 99.51 40 015 200 003 40 80 80 016

.03 054 > > BONANZA RD 30 203 30

60 60 203 30 142.14 15 142.14 L=35.26 L=35.42 20 126.89 20330 100 100 130 130 130 20 130 60 100 100 30 001 68.7 91.31 001 003 004 40 15 >

1 065 001 029 R=25 002 064 105 110 R=20 148

61.91

61.91 61.91 61.91 55.13 61.91

61.91 61.91 61.91

61.91 61.91 61.91 R=20

042 61.21 61.91 70 1 61.91 106 147 70 1 18 1 1 12 063 14 1 41.91 12 50 18 001 1 14 1 30

130 20 20 2 25 25 200 50 53

50 50 50 50 50 53 50 5 002 028 2 60 60 065 104 107 60 60 50 16 2 2 149 2 17 17 13 2 13 4060 40 3 2 11 2 2 11 001 165 166 252550

53 50 169.14 50 50

50 5050 50 50

53 26 50 15 3 25 3 16 3 60 3 12 3 12 60 60

4 16 3 105 3 10 TAX DIST1 2 3203,2004 5 6 7 89 10

50 50 50 50 25 53 14 50 50

53 15

4 4 4 11 416 11 16 60

15 60 60 60 60 4 60 15 PM 8 4 9 4 5 112-96 OFFERING MEMORANDUM | HILLTOP VILLAS APARTMENTS 13 INCOME APPROACH TO VALUE

OFFERING MEMORANDUM | HILLTOP VILLAS APARTMENTS 14 Hilltop Villas Apartments Pro Forma Financial Model Assumptions

GNIMIT SISYLANA GNIMIT TBED GNICNANIF Start of Analysis Aug-18 sisylanA fo raeY tsriF fo dnE fo tsriF raeY fo sisylanA 91-luJ Debt 1 Proposed Financing sisylanA fo dnE fo sisylanA 82-luJ desoporP ro gnitsixE Proposed doireP sisylanA doireP 01 sraeY naoL :epyT gnizitromA ro tseretnI ylnO Amortizing Current TTM Jun-18 Loan Origination Date Jan-19 )FCD no desaB( rY noitazilibatS rY desaB( no )FCD raeY 4 lanigirO Loan Amount $5,191,240 sutatS ledoM amroforP ledoM sutatS LANIF naoL tnuomA sa fo tratS fo sisylanA 0$ oitaR ecirP selaS-ot-naoL ecirP oitaR %00.0 MONTHLY RENT ROLL REPORT Interest Rate Methodology (360 or 365) 365 Rent Roll Report Dated 06/30/18 Interest Rate 4.140% Occupied Units Base Rent $59,359 Mortgage Premium Insurance 0.000% Vacant Units at Market Rent $7,900 mreT 80.03 sraeY tneR laitnetoP ssorG laitnetoP tneR 952,76$ mreT gniniameR 80.03 sraeY tneR tekraM ta stinU llA stinU ta tekraM tneR 596,79$ noitazitromA doireP 360 Months esaeL-ot-)ssoL( niaG esaeL-ot-)ssoL( )634,03$( naoL tnatsnoC %668.5 Annual Debt Service Payment (P&I only) $304,542 INVESTMENT ASSUMPTIONS Maturity Date Jan-49 Sales Price $6,921,654 Outstanding Loan Balance at Maturity ($25,378) Loan Fee - ,1.% $0 Acquisition Reserves Include Loan Fee in Cash Flow Operations NO Due Diligence & Closing Costs $50,000 Include Loan Fee in Acquisition Reserve YES Prepayment Penalty $0 Unit/Common Area Rehab $840,000 Roof Replacement $0 eeF naoL eeF 0$

Total Unleveraged Acquisition Cost 456,118,7$ deriuqeR ytiuqE deriuqeR 456,118,7$

Total Leveraged Acquisition Cost 456,118,7$ deriuqeR ytiuqE deriuqeR 456,118,7$ %00.001oitaR tsoC noitisiuqcA degareveL latoT-ot-ytiuqE degareveL noitisiuqcA tsoC %00.001oitaR PRO FORMA FINANCIAL MODEL latoT naoL tnuomA 0$ oitaR tsoC noitisiuqcA degareveL latoT-ot-naoL degareveL noitisiuqcA tsoC oitaR %00.0 Hilltop Villas Apartments Terminal CAP Rate 5.75% Pro Forma Financial Model Assumptions Cost of Sale 1.00%

GNIMIT SISYLANA GNIMIT TBED MARKEGNICNANIF T RENT GROWTH Start of Analysis Aug-18 raeY 1 %00.0 sisylanA fo raeY tsriF fo dnE fo tsriF raeY fo sisylanA 91-luJ Debt 1 PrraeY 2 oposed Financing %00.0 sisylanA fo dnE fo sisylanA 82-luJ raeY 3 desoporP ro gnitsixE Proposed %05.1 doireP sisylanA doireP 01 sraeY raeY 4 naoL :epyT gnizitromA ro tseretnI ylnO Amortizing %00.0 Current TTM Jun-18 LoanraeY 5 Origination Date Jan-19 %00.0 )FCD no desaB( rY noitazilibatS rY desaB( no )FCD raeY 4 3 raeY lanigirO LoanegarevA Amount $5,191,240 %00.0 sutatS ledoM amroforP ledoM sutatS LANIF 5 raeY naoL egarevA tnuomA sa fo tratS fo sisylanA 0$ %00.0 oitaR ecirP selaS-ot-naoL ecirP oitaR %00.0 MONTHLY RENT ROLL REPORT GROSSInterest POTENTIAL Rate M RENethodoT (GlogyPR )(360 GROWTH or 365) 365 Rent Roll Report Dated 06/30/18 InterestraeY 1 Rate 4.140% %00.0 Occupied Units Base Rent $59,359 MraeY ortgage2 Premium Insurance 0.000% %52.54 Vacant Units at Market Rent $7,900 raeY 3 mreT 80.03 sraeY %05.1 tneR laitnetoP ssorG laitnetoP tneR 952,76$ raeY 4 mreT gniniameR 80.03 sraeY %00.0 tneR tekraM ta stinU llA stinU ta tekraM tneR 596,79$ raeY 5 noitazitromA doireP 360 Months %00.0 esaeL-ot-)ssoL( niaG esaeL-ot-)ssoL( )634,03$( 3 raeY naoL egarevA tnatsnoC %668.5 %85.51 Hilltop Villas Apartments 5 AnnuaraeY l DebtegarevA Service Payment (P&I only) $304,542 %53.9 INVESTMENT ASSUMPTIONS Maturity Date Jan-49 Pro Forma Financial Model Sales Price $6,921,654 Outstanding Loan Balance at Maturity ($25,378) Assumptions Loan Fee - ,1.% $0 Acquisition Reserves Include Loan Fee in Cash Flow Operations NO Due DiligenceSISYLANA & ClosGNIMIT ing Costs $50,000 TBED IncludeGNICNANIF Loan Fee in Acquisition Reserve YES PrepaySmtartent ofPena Analtylysis $0 Aug-18 Unit/CommdnE onfo AreatsriF ReharaeY bfo sisylanA $840,000 91-luJ Debt 1 Proposed Financing Roof RepldnE ace fo ment sisylanA $0 82-luJ desoporP ro gnitsixE Proposed eeF naoL eeF sisylanA doireP 0$ 01 sraeY naoL :epyT gnizitromA ro tseretnI ylnO Amortizing Current TTM Jun-18 Loan Origination Date Jan-19 Total Unleveraged AcqunoitazilibatS isitirY on CdesaB( ost no )FCD 456,118,7$ raeY 4 lanigirO Loan Amount $5,191,240 deriuqeR ytiuqE deriuqeR amroforP ledoM sutatS 456,118,7$ LANIF naoL tnuomA sa fo tratS fo sisylanA 0$ oitaR ecirP selaS-ot-naoL ecirP oitaR %00.0 Total LeveragedMONTHLY Acquisition RENT ROLL Cost REPORT 456,118,7$ Interest Rate Methodology (360 or 365) 365 deriuqeR ytiuqE Rent RoderiuqeR ll Report Dated 456,118,7$ 06/30/18 Interest Rate 4.140% Occupied UnilatoT-ot-ytiuqE ts Base degareveL R ent noitisiuqcA tsoC %00.001oitaR $59,359 Mortgage Premium Insurance 0.000% tnuomA naoL latoT VanaoL cant UnitstnuomA at Market Rent 0$ $7,900 mreT 80.03 sraeY tneR laitnetoP ssorG latoT-ot-naoL laitnetoP degareveL tneR noitisiuqcA tsoC oitaR %00.0 952,76$ mreT gniniameR 80.03 sraeY tneR tekraM ta stinU llA stinU ta tekraM tneR 596,79$ noitazitromA doireP 360 Months Terminal CAP niaG Rate esaeL-ot-)ssoL( 5.75% )634,03$( naoL tnatsnoC %668.5 Annual Debt Service Payment (P&I only) $304,542 Cost ofIN SaleVESTMENT ASSUMPTIONS 1.00% Maturity Date Jan-49 Sales Price $6,921,654 Outstanding Loan Balance at Maturity ($25,378) MARKET RENT GROWTH Loan Fee - ,1.% $0 1 raeY 1 Acquisition Reserves %00.0 Include Loan Fee in Cash Flow Operations NO Due Diligence & Closing Costs $50,000 Include Loan Fee in Acquisition Reserve YES The financialraeY 2 model is based on the assumption that investing $840,000 to refurbish%00.0 the units & Prepayment Penalty $0 commonraeY 3 areas over a 3 year period will obtain rent premiums below NHP maximum rent%05.1 limits. 4 raeY 4 Unit/Common Area Rehab %00.0 $840,000 5 raeY 5 Roof Replacement %00.0 $0 egarevA raeY 3 raeY egarevA naoL eeF %00.0 0$ egarevA raeY 5 raeY egarevA %00.0 ASSUMPTIONS Total Unleveraged Acquisition Cost 456,118,7$ GROSS POTENTIAL RENytiuqE T (GPR) deriuqeR GROWTH 456,118,7$ 1 raeY 1 %00.0 2 raeY 2 Total Leveraged Acquisition Cost %52.54 456,118,7$ OFFERING MEMORANDUM | HILLTOP VILLAS APARTMENTS 3 raeY 3 ytiuqE deriuqeR %05.1 456,118,7$ 15 4 raeY 4 latoT-ot-ytiuqE degareveL noitisiuqcA tsoC %00.0 %00.001oitaR 5 raeY 5 latoT naoL tnuomA %00.0 0$ egarevA raeY 3 raeY egarevA latoT-ot-naoL degareveL noitisiuqcA tsoC oitaR %85.51 %00.0 egarevA raeY 5 raeY egarevA %53.9 Terminal CAP Rate 5.75%

Cost of Sale 1.00%

MARKET RENT GROWTH 1 raeY 1 %00.0 2 raeY 2 %00.0 3 raeY 3 %05.1 4 raeY 4 %00.0 5 raeY 5 %00.0 egarevA raeY 3 raeY egarevA %00.0 egarevA raeY 5 raeY egarevA %00.0

GROSS POTENTIAL RENT (GPR) GROWTH 1 raeY 1 %00.0 2 raeY 2 %52.54 3 raeY 3 %05.1 4 raeY 4 %00.0 5 raeY 5 %00.0 egarevA raeY 3 raeY egarevA %85.51 egarevA raeY 5 raeY egarevA %53.9 PRO FORMAHilltop FINANCIAL Villas Apartments MODEL Pro Forma Financial Model Unit Summary

Two Bedroom One Bath Rentable Total Jun-2018 Jun-2018 Jun-2018 No. of Square Rentable Market Market Total Market Unit Type Units Feet Sq. Ft. Rent/Unit Rent/SF Rent Potential 2 Bedroom 1 Bath 84 Units 840 SF 70,560 SF $849.00 $1.01 SF $71,316 Totals / Wtd. Averages 84 Units 840 SF 70,560 SF $849.00 $1.01 SF $71,316

Three Bedroom Rentable Total Jun-2018 Jun-2018 Jun-2018 Unit Type No.Units of SquareFeet RentableSq. Ft. Rent/Unit Market Rent/SFMarketRent TotalPotential Market 3 Bedroom 2 Bath 27 Units 1,034 SF 27,918 SF $977.00 $0.94 SF $26,379 Totals / Wtd. Averages 27 Units 1,034 SF 27,918 SF $977.00 $0.94 SF $26,379

Hilltop Villas Apartments Proforma Financial Model Unit Summary

Rentable Total Jun-2018 Jun-2018 Jun-2018 No. of Square Rentable Market Market Total Market Unit Type Units Feet Sq. Ft. Rent/Unit Rent/SF Rent Potential Two Bedroom One Bath 84 Units 840 SF 70,560 SF $849.00 $1.01 SF $71,316 Three Bedroom 27 Units 1,034 SF 27,918 SF $977.00 $0.94 SF $26,379 Totals / Wtd. Averages 111 Units 887 SF 98,478 SF $880.14 $0.99 SF $97,695

Unit Mix Unit Market Rent

$1,200 $1.20 SF

0% $1,000 $1.00 SF 24%

$800 $0.80 SF

$600 $0.60 SF

Rent per Month $400 $0.40 SF 76% Rent per SF/Month

$200 $0.20 SF

$0 $0.00 SF Two Bedroom One Bath Three Bedroom Three Bedroom Two Bath

Two Bedroom One Bath Three Bedroom Three Bedroom Two Bath Rent Rent SF

UNIT SUMMARY

OFFERING MEMORANDUM | HILLTOP VILLAS APARTMENTS 16 PRO FORMA FINANCIAL MODEL

Hilltop Villas Apartments Pro Forma Financial Model 1 2 3 4 5 6 7 8 9 10 11 Pro Forma Cash Flow INCOME All Units at Market Rent $1,172,340 $1,172,340 $1,189,925 $1,189,925 $1,189,925 $1,189,925 $1,207,774 $1,207,774 $1,207,774 $1,207,774 $1,225,891 Gain (Loss)-to-Lease (365,232) 0000000 018,1170

Gain (Loss)-to-Lease INPUT % 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 1.50% 0.00%

GROSS POTENTIAL RENT $807,108 $1,172,340 $1,189,925 $1,189,925 $1,189,925 $1,189,925 $1,207,774 $1,207,774 $1,207,774 $1,225,891 $1,225,891

Premiums From Rehabbed Units -$ $ 39,000 $ 78,000 $ 117,000 $ 117,000 $117,000 $117,000 $117,000 $117,000 $117,000 $117,000

RUBS INCOME $0 0000000 0 00 OTHER INCOME TOTAL OTHER INCOME $13,861 $14,277 $14,705 $15,146 $15,601 $16,069 $16,551 $17,047 $17,559 $18,085 $18,628 GROSS POTENTIAL INCOME $820,969 $1,225,617 $1,282,630 $1,322,071 $1,322,526 $1,322,994 $1,341,325 $1,341,821 $1,342,333 $1,360,976 $1,361,519 Vacancy/Collection Allowance (% of GPR) (48,426) (70,340) (71,396) (71,396) (47,597) (47,597) (48,311) (48,311) (48,311) (49,036) (49,036) Model Apartments 0 0000000 0 00 Concessions (% of GPR) 0 0 0 0 0 0 0 0 0 0 0 Bad Debt Allowance (4,036) (5,862) (5,950) (5,950) (5,950) (5,950) (6,039) (6,039) (6,039) (6,129) (6,129)

EFFECTIVE GROSS INCOME $768,507 $1,149,415 $1,205,285 $1,244,726 $1,268,979 $1,269,447 $1,286,975 $1,287,471 $1,287,983 $1,305,811 $1,306,354

EXPENSES Real Estate Taxes $25,960 $26,220 $26,482 $26,747 $27,014 $27,284 $27,557 $27,833 $28,111 $28,392 $28,676 Insurance 33,408 34,410 35,443 36,506 37,601 38,729 39,891 41,088 42,320 43,590 44,898 Utilities 102,333 105,403 108,565 111,822 115,177 118,632 122,191 125,857 129,632 133,521 137,527 Repairs & Maintenance 58,839 60,604 62,422 64,295 66,224 68,211 70,257 72,365 74,535 76,772 79,075 Marketing & Promotion 3,548 3,654 3,764 3,877 3,993 4,113 4,236 4,364 4,495 4,629 4,768 On-Site Payroll 78,182 80,527 82,943 85,432 87,995 90,634 93,353 96,154 99,039 102,010 105,070 General & Administrative 25,680 26,450 27,244 28,061 28,903 29,770 30,663 31,583 32,531 33,507 34,512 Management Fee 23,055 34,482 36,159 37,342 38,069 38,083 38,609 38,624 38,639 39,174 39,191 Replacement & Reserves 27,750 28,583 29,440 30,323 31,233 32,170 33,135 34,129 35,153 36,207 37,294 TOTAL EXPENSES $413,235 $435,849 $449,041 $462,081 $475,016 $487,598 $501,064 $514,401 $528,133 $542,791 $557,348

NET OPERATING INCOME $355,272 $713,566 $756,244 $782,645 $793,963 $781,849 $785,911 $773,070 $759,849 $763,020 $749,006

CASH FLOW

OFFERING MEMORANDUM | HILLTOP VILLAS APARTMENTS 17 PRO FORMA FINANCIAL MODEL Hilltop Villas Apartments Pro Forma Financial Model Leveraged IRR & PV Analysis

KEY ASSUMPTIONS Equity Required $7,811,654 CURRENT RETURN/RESIDUAL VALUE RATIO - LEVERAGED Total Leveraged Acquisition Cost $7,811,654 Total Loan Amount $0 Percent of Cost per Unit $70,375 Total Loan-to-Value Ratio 0.00% IRR Total Return Analysis Period 10 Years Effective Interest Rate 4.197% Total Internal Rate of Return - 10 Year 18.31% 100.00% Terminal CAP Rate 5.75% Effective Loan Constant 0.000% Cash Flow with No Appreciation 13.34% 72.85% Cost of Sale 1.00% Total Annual DS Payment $0 Appreciation Return 4.97% 27.15%

Fiscal Year Ending 012345678910 RETURNS - Leveraged Equity Jul-2019 Jul-2020 Jul-2021 Jul-2022 Jul-2023 Jul-2024 Jul-2025 Jul-2026 Jul-2027 Jul-2028 NOI $355,272 $713,566 $756,244 $782,645 $793,963 $781,849 $785,911 $773,070 $759,849 $763,020 Leveraged Cash Flow (7,811,654) 5,368,862 409,024 451,702 478,103 489,421 477,307 481,369 468,528 455,308 458,478 NOI Return 5 Yr Avg: 8.71% 4.55% 9.13% 9.68% 10.02% 10.16% 10.01% 10.06% 9.90% 9.73% 9.77% Cash to Initial Equity 5 Yr Avg: 18.43% 68.73% 5.24% 5.78% 6.12% 6.27% 6.11% 6.16% 6.00% 5.83% 5.87% Internal Rate of Return 10 Yr IRR: 18.31% 60.20% 43.49% 35.32% 30.14% 26.11% 23.81% 21.78% 20.24% 19.30% 18.31%

Present Values at Various Discount Rates & Holding Periods - Leveraged Cash Flows & Reversion PRESENT VALUES Fiscal Year Ending 12345678910 Jul-2019 Jul-2020 Jul-2021 Jul-2022 Jul-2023 Jul-2024 Jul-2025 Jul-2026 Jul-2027 Jul-2028 Discount Rate 14.00% $10,977,581 $11,157,600 $11,079,789 $10,830,296 $10,388,649 $10,131,365 $9,782,924 $9,477,529 $9,298,677 $9,057,588 14.50% $10,929,644 $11,080,842 $10,977,496 $10,707,549 $10,253,070 $9,983,133 $9,627,988 $9,318,249 $9,133,499 $8,891,322 15.00% $10,882,124 $11,004,995 $10,876,786 $10,587,147 $10,120,553 $9,838,760 $9,477,585 $9,164,115 $8,974,156 $8,731,380 15.50% $10,835,015 $10,930,042 $10,777,625 $10,469,032 $9,991,013 $9,698,122 $9,331,551 $9,014,920 $8,820,393 $8,577,464 16.00% $10,788,312 $10,855,971 $10,679,983 $10,353,149 $9,864,363 $9,561,097 $9,189,727 $8,870,469 $8,671,969 $8,429,291

GOING-IN CAP RATE SENSITIVITY TERMINAL CAP RATE SENSITIVITY LEVERAGED LEVERAGED Terminal Acquisition Going-In 10 Year Year 1 Terminal Acquisition Going-In 10 Year Year 1 CAP Rate Cost Equity CAP Rate IRR Cash/Cash CAP Rate Cost Equity CAP Rate IRR Cash/Cash 5.75% $7,920,280 $7,920,280 4.49% 17.88% 67.79% 5.00% $7,423,772 $7,423,772 4.79% 21.33% 72.32% 5.75% $7,747,559 $7,747,559 4.59% 18.58% 69.30% 5.25% $7,423,772 $7,423,772 4.79% 20.86% 72.32% 5.75% $7,582,211 $7,582,211 4.69% 19.28% 70.81% 5.50% $7,423,772 $7,423,772 4.79% 20.41% 72.32% 5.75% $7,423,772 $7,423,772 4.79% 19.99% 72.32% 5.75% $7,423,772 $7,423,772 4.79% 19.99% 72.32% 5.75% $7,271,820 $7,271,820 4.89% 20.70% 73.83% 6.00% $7,423,772 $7,423,772 4.79% 19.58% 72.32% 5.75% $7,125,964 $7,125,964 4.99% 21.42% 75.34% 6.25% $7,423,772 $7,423,772 4.79% 19.19% 72.32% 5.75% $6,985,843 $6,985,843 5.09% 22.15% 76.85% 6.50% $7,423,772 $7,423,772 4.79% 18.82% 72.32%

15.00% Discount Rate

$12,000,000

$10,000,000

$8,000,000

$6,000,000 Present Values Values Present

$4,000,000

$2,000,000

$0 12345678910

LEVERAGED IRR & PV ANALYSIS

OFFERING MEMORANDUM | HILLTOP VILLAS APARTMENTS 18 NEVADA HOUSING DIVISION ABOUT NEVADA HOUSING DIVISION The mission is to provide affordable housing opportunities and improve the quality of life for Nevada residents. Nevada Housing Division (NHD), a division of the State of Nevada Department of Business and Industry, was created by the Nevada State Legislature in 1975. NHD is committed to making Nevada a better place to live and work. We connect Nevadans with homes by providing financing to developers to build affordable apartment homes, by providing innovative mortgage solutions, and by making more homes energy efficient, thereby lowering utility expenses.

PROGRAMS AT A GLANCE Low Income Housing Tax Credit (LIHTC) Since 1986 the LIHTC program has assisted in the financing of 11,203 multi-family housing units in the State of Nevada with a total of nearly $108 million in housing tax credits allocated. The following objectives are identified in the 2018 Qualified Allocation Plan (QAP): > Increase the amount of safe and livable affordable rental housing in Nevada. > Preserve existing affordable rental housing. > Contribute to a vibrant and sustainable economy by supporting and facilitating the construction of affordable workforce housing near employment centers. > Increase the availability of housing with supportive services, including veterans housing. > Support the housing goals and objectives stated in the State of Nevada Consolidated Plan.

LOW INCOME HOUSING TAX CREDIT/BOND PROGRAM 2018 Income limits effective March 6, 2018.

INCOME # IN 1 PERSON 2 PERSON 3 PERSON 4 PERSON 5 PERSON 6 PERSON 7 PERSON 8 PERSON HOUSEHOLD 60% 26,460 30,240 34,020 37,740 40,800 43,800 46,800 49,860 55% 24,255 27,720 31,185 34,595 37,400 40,150 42,900 45,705 Las Vegas/ 50% 22,050 25,200 28,350 31,450 34,000 36,500 39,000 41,550 Clark County 45% 19,845 22,680 25,515 28,305 30,600 32,850 35,100 37,395 $61,900 (median) 40% 17,640 20,160 22,680 25,160 27,200 29,200 31,200 33,240 35% 15,435 17,640 19,845 22,015 23,800 25,550 27,300 29,085 30% 13,230 15,120 17,010 18,870 20,400 21,900 23,400 24,930

Clark County Maximum Rents as of March 6, 2018. CLARK (LV) 0 BEDROOM 1 BEDROOM 2 BEDROOM 3 BEDROOM 4 BEDROOM 60% 661.5 708.8 850.5 981.8 ,1095.0 55% 606.4 649.7 779.6 899.9 1,003.8 50% 551.3 590.6 708.8 818.1 912.5 45% 496.1 531.6 637.9 736.3 821.3 40% 441.0 472.5 567.0 654.5 730.0 35% 385.9 413.4 496.1 572.7 638.8 30% 330.8 354.4 425.3 490.9 547.5

Utility Allowances are included in the Maximum Rents.

OFFERING MEMORANDUM | HILLTOP VILLAS APARTMENTS 19 COMPARABLES

OFFERING MEMORANDUM | HILLTOP VILLAS APARTMENTS 20 RENT COMPARABLES Source - CoStar Analytics No. Rent Comps Avg. Rent Per Unit Avg. Rent Per SF Avg. Vacancy Rate 14 $778 $0.86 3.6% RENT COMP LOCATIONS

RENT COMPS SUMMARY STATISTICS

OFFERING MEMORANDUM | HILLTOP VILLAS APARTMENTS 21 RENT COMPARABLES Source - CoStar Analytics

OFFERING MEMORANDUM | HILLTOP VILLAS APARTMENTS 22 OVERALL CONSTRUCTION SUMMARY Source - CoStar Analytics All-Time Annual Average Delivered Past 4 Quarters Deliveries Next 4 Quarters Proposed Next 4 Quarters 180 0 327 0 MAP OF 12 MONTH DELIVERIES, UNDER CONSTRUCTION, PROPOSED

Overall Construction Summary 601-625 N 13th St - Hilltop Villas

All-Time Annual Average Delivered Past 4 Quarters Deliveries Next 4 Quarters Proposed Next 4 Quarters 180 0 327 0 MAP OF 12 MONTH DELIVERIES, UNDER CONSTRUCTION, PROPOSED

PASTPAST AND AND FUTURE FUTURE DELIVERIES DELIVERIES

OFFERING MEMORANDUM | HILLTOP VILLAS APARTMENTS 7/3/2018 23 Copyrighted report licensed to Colliers International - 508596. Page 43 Under Construction Properties 601-625 N 13th St - Hilltop Villas

Properties Units Percent Of Inventory Avg. No. Units UNDER CONSTRUCTION PROPERTIES Source - CoStar Analytics

Properties3 327Units Percent0.9% of Inventory 109Avg. No.Units UNDER CONSTRUCTION3 PROPERTIES 327 0.9% 109 UNDER CONSTRUCTION PROPERTIES

UNDER CONSTRUCTION CONSTRUCTION SUMMARY SUMMARY STATISTICS STATISTICS Low Average Median High Property Size in Units 48 109 48 231 Number of Stories 3 4 4 5 Average Unit Size 708 SF 775 SF 775 SF 842 SF

Star Rating

Estimated Delivery Date Aug 2018 Sep 2018 Aug 2018 Dec 2018 Months to Delivery 1 2 1 5 Construction Period in Months 12 19 19 27

OFFERING MEMORANDUM | HILLTOP VILLAS APARTMENTS 24

7/3/2018 Copyrighted report licensed to Colliers International - 508596. Page 44 Affordable Housing Sales Activity Sales Volume Survey Min Max For Sale Survey Min Max Transactions 15 - - Listings -- - Sold Units 2,403Affordable 72 Housing236 Units Sales Activity -- - Source - CoStar Analytics AFFORDABLESales Volume HOUSING(Mil.) $155.01 $1.70SALES$26.00 ForACTIVITY Sale Volume (Mil.) -- - Sales Volume Survey Min Max For Sale Survey Min Max TransactionsAvg Units 166Affordable15 72 - Housing236- ListingsPrice Sales Per Unit Activity -- - SalesSold Units Volume Survey2,403Min 72 Max236 ForUnits Sale Survey--Min Max- TransactionsSales Volume (Mil.) $155.0115 $1.70- $26.00- ListingsFor Sale Volume (Mil.) ---- - SoldAvg Units Units 2,40316672 236 UnitsPrice Per Unit ---- - Sales Volume (Mil.) $155.01Survey $1.70Min $26.00Max ForProperties Sale Volume (Mil.) Survey- Min- Max- AvgSale Units Price Per Unit $71,595166 $9,39972 $116,071236 PriceExisting Per Units Unit 2,401- 72- 236- Avg Sale Price (Mil.) $12 $1.7 $26 Vacancy Rate 8.4% 0.8% 48.0% Cap Rate 5.8% 4.7% 6.9% Asking Rent $834 $545 $1,051 Sales Survey Min Max Properties Survey Min Max SalePercent Price Leased Per Unit $71,59590.7%$9,399 82.0% $116,07198.0% Existing12 Mo. Absorp Units Units 2,4011772 1 2364 SalesAvg Sale Price (Mil.) Survey$12 $1.7Min Max$26 PropertiesVacancy Rate Survey8.4% 0.8%Min 48.0%Max SaleCap RatePrice Per Unit $71,5955.8% $9,3994.7% $116,0716.9% ExistingAsking Rent Units 2,401$834 $545 72 $1,051236 AvgPercent Sale Leased Price (Mil.) 90.7%$1282.0% $1.7 98.0%$26 Vacancy12 Mo. Absorp Rate Units 8.4%17 0.8%1 48.0%4 Cap Rate 5.8% 4.7% 6.9% Asking Rent $834 $545 $1,051 PercentSales LeasedVolume 90.7% 82.0% 98.0% Average12 Mo. Absorp Sale Units Price Per Unit 17 1 4

Sales Volume Average Sale Price Per Unit

Cap Rate Sales Volume by Buyer Type

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7/19/2018 Copyrighted report licensed to Colliers International - 508596.

7/19/2018 Copyrighted report licensed to Colliers International - 508596. AFFORDABLE HOUSING SALES COMPARABLES

Source - CoStar Analytics 1 601-625 N 13th St - Hilltop Villas (Part of Multi-Property) SOLD

Las Vegas, NV 89101 Clark County Sale Date: 01/09/2018 Bldg Type: Class C Multi-FamilyApartments Sale Price: $4,000,000- Year Built/Age: Built 1969 Age: 49 Price/SF: - RBA: 108,432 SF Price/Unit: - # of Units: 118 Pro Forma Cap - Parcel No: Actual Cap Rate: - Comp ID: 4108525 GRM/GIM: - Research Status: Research Complete Sale Conditions: - 2 701 N 13th St - Maryland Villas SOLD

Las Vegas, NV 89101 Clark County Sale Date: 10/05/2017 Bldg Type: Class B Multi-FamilyApartments Sale Price: $4,860,000 - Confirmed Year Built/Age: Built 2006 Age: 11 Price/SF: $36.65 RBA: 132,612 SF Price/Unit: $45,000 # of Units: 108 Pro Forma Cap - Parcel No: 139-26-412-018, 139-26-412-019 Actual Cap Rate: - Comp ID: 4033041 GRM/GIM: - Research Status: Confirmed Sale Conditions: - 3 3580 E Alexander Rd - Millennium East Luxury Apartments SOLD

Las Vegas, NV 89115 Clark County Sale Date: 02/27/2018 Bldg Type: Class B Multi-FamilyApartments Sale Price: $25,960,000 - Confirmed Year Built/Age: Built 2000 Age: 18 Price/SF: $116.47 RBA: 222,884 SF Price/Unit: $110,000 # of Units: 236 Pro Forma Cap - Parcel No: 140-06-414-001, 140-06-414-002, 140-06-414- Actual Cap Rate: 6.00% 003, 140-06-414-004 [Partial List] Comp ID: 4154951 GRM/GIM: - Research Status: Confirmed Sale Conditions: - 4 6170 Boulder Hwy - Silver Creek SOLD

Las Vegas, NV 89122 Clark County Sale Date: 06/13/2018 Bldg Type: Class B Multi-FamilyApartments Sale Price: $26,000,000 - Full Value Year Built/Age: Built 2002 Age: 16 Price/SF: $116.48 RBA: 223,209 SF Price/Unit: $116,071 # of Units: 224 Pro Forma Cap - Parcel No: 161-27-402-004 Actual Cap Rate: 5.35% Comp ID: 4301432 GRM/GIM: - Research Status: Full Value Sale Conditions: - 5 3675 Cambridge St - Skyline Parc SOLD

Las Vegas, NV 89169 Clark County Sale Date: 12/21/2017 (259 days on mkt) Bldg Type: Class C Multi-FamilyApartments Sale Price: $11,000,000 - Confirmed Year Built/Age: Built 1972 Age: 45 Price/SF: $71.32 RBA: 154,236 SF Price/Unit: $56,995 # of Units: 191 Pro Forma Cap 6.87% Parcel No: 162-15-601-005 Actual Cap Rate: - Comp ID: 4087836 GRM/GIM: - Research Status: Confirmed Sale Conditions: 1031 Exchange 6 3985 E Cheyenne Ave - Las Brisas De Cheyenne SOLD

Las Vegas, NV 89115 Clark County Sale Date: 06/26/2018 Bldg Type: Class B Multi-FamilyApartments Sale Price: $12,425,000 Year Built/Age: Built 1999 Age: 19 Price/SF: $44.32 RBA: 280,376 SF Price/Unit: $70,597 # of Units: 176 Pro Forma Cap - Parcel No: 140-18-501-003 Actual Cap Rate: - Comp ID: 4347225 GRM/GIM: - Research Status: In Progress Sale Conditions: -

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OFFERING MEMORANDUM | HILLTOP VILLAS APARTMENTS Page 1 26 AFFORDABLE HOUSING SALES COMPARABLES

Source - CoStar Analytics

7 1626 Davis Pl - Owens Senior Apartments SOLD

North Las Vegas, NV 89030 Clark County Sale Date: 05/14/2018 Bldg Type: Class B Multi-FamilyApartments Sale Price: $1,700,000 Year Built/Age: Built 2001 Age: 17 Price/SF: $27.25 RBA: 62,380 SF Price/Unit: $23,611 # of Units: 72 Pro Forma Cap - Parcel No: 139-22-810-039 Actual Cap Rate: - Comp ID: 4269048 GRM/GIM: - Research Status: Research Complete Sale Conditions: - 8 990 Equestrian Dr - Horizon Seniors SOLD

Henderson, NV 89002 Clark County Sale Date: 02/22/2018 Bldg Type: Class B Multi-FamilyApartments Sale Price: $2,143,000 Year Built/Age: Built 2001 Age: 17 Price/SF: $7.34 RBA: 292,029 SF Price/Unit: $9,399 # of Units: 228 Pro Forma Cap - Parcel No: 179-28-101-011 Actual Cap Rate: - Comp ID: 4166983 GRM/GIM: - Research Status: Research Complete Sale Conditions: - 9 5540 W Harmon Ave - Madison at Spring Valley SOLD

Las Vegas, NV 89103 Clark County Sale Date: 08/31/2017 Bldg Type: Class B Multi-FamilyApartments Sale Price: $18,200,000 - Confirmed Year Built/Age: Built 2001 Age: 16 Price/SF: $116.51 RBA: 156,208 SF Price/Unit: $108,333 # of Units: 168 Pro Forma Cap - Parcel No: 163-24-202-004, 163-24-202-005 Actual Cap Rate: 4.70% Comp ID: 4000635 GRM/GIM: - Research Status: Confirmed Sale Conditions: LIHTC 10 3240 N Las Vegas Blvd - Cheyenne Pointe-Las-vegas SOLD

Las Vegas, NV 89115 Clark County Sale Date: 11/01/2017 (15 days on mkt) Bldg Type: Class B Multi-FamilyApartments Sale Price: $17,442,000 - Confirmed Year Built/Age: Built 1999 Age: 18 Price/SF: $89.23 RBA: 195,480 SF Price/Unit: $85,500 # of Units: 204 Pro Forma Cap - Parcel No: 140-18-102-025 Actual Cap Rate: 5.51% Comp ID: 4045882 GRM/GIM: - Research Status: Confirmed Sale Conditions: - 11 3201 S Mojave Rd - Sierra Pines SOLD

Las Vegas, NV 89121 Clark County Sale Date: 12/15/2017 Bldg Type: Class C Multi-FamilyApartments Sale Price: $4,325,000 - Full Value Year Built/Age: Built 1998 Age: 19 Price/SF: $50.68 RBA: 85,338 SF Price/Unit: $48,056 # of Units: 90 Pro Forma Cap - Parcel No: 162-12-802-001 Actual Cap Rate: - Comp ID: 4090540 GRM/GIM: - Research Status: Full Value Sale Conditions: - 12 4485 Pennwood Ave - Woodcreek Apartment Homes SOLD

Las Vegas, NV 89102 Clark County Sale Date: 08/31/2017 (147 days on mkt) Bldg Type: Class C Multi-FamilyApartments Sale Price: $16,000,000 - Confirmed Year Built/Age: Built 1978 Age: 39 Price/SF: $73.97 RBA: 216,314 SF Price/Unit: $68,966 # of Units: 232 Pro Forma Cap - Parcel No: 162-07-301-004 Actual Cap Rate: 6.00% Comp ID: 3992845 GRM/GIM: - Research Status: Confirmed Sale Conditions: Debt Assumption, LIHTC

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Page 2 7 1626 Davis Pl - Owens Senior Apartments SOLD

Las Vegas, NV 89121 Clark County Sale Date: 12/15/2017 Bldg Type: Class C Multi-FamilyApartments Source - CoStar Analytics Sale Price: $4,325,000 - Full Value Year Built/Age: Built 1998 Age: 19 Price/SF: $50.68 RBA: 85,338 SF Price/Unit: $48,056 # of Units: 90 Pro Forma Cap - Parcel No: 162-12-802-001 Actual Cap Rate: - Comp ID: 4090540 GRM/GIM: - Research Status: Full Value Sale Conditions: - 12 4485 Pennwood Ave - Woodcreek Apartment Homes SOLD

13 2601 Stewart Ave - Stewart VillasCopyrighted (Part of report Multi-Property) licensed to Colliers International - 508596. 7/19/2018SOLD

Las Vegas, NV 89101 Clark County Sale Date: 01/09/2018 Bldg Type: Class C Multi-FamilyApartments Page 2 Sale Price: $4,750,000 - Allocated Year Built/Age: Built 1962 Age: 56 Price/SF: $46.13 RBA: 102,980 SF Price/Unit: $41,666 # of Units: 114 Pro Forma Cap - Parcel No: Actual Cap Rate: - Comp ID: 4108526 GRM/GIM: - Research Status: Allocated Sale Conditions: - 14 301 Taylor St - Highland Village SOLD

Henderson, NV 89015 Clark County Sale Date: 11/29/2017 Bldg Type: Class C Multi-FamilyApartments Sale Price: - Year Built/Age: Built 1983 Age: 34 Price/SF: - RBA: 98,400 SF Price/Unit: - # of Units: 120 Pro Forma Cap - Parcel No: 179-07-801-009 Actual Cap Rate: - Comp ID: 4079483 GRM/GIM: - Research Status: Research Complete Sale Conditions: - 15 740 E Warm Springs Rd - Paseo Del Prado SOLD

Henderson, NV 89015 Clark County Sale Date: 02/15/2018 Bldg Type: Class B Multi-FamilyApartments Sale Price: $10,200,000 - Confirmed Year Built/Age: Built 1996 Age: 22 Price/SF: $96.83 RBA: 105,337 SF Price/Unit: $85,000 # of Units: 120 Pro Forma Cap - Parcel No: 179-08-601-004, 179-08-601-005 Actual Cap Rate: 5.60% Comp ID: 4147875 GRM/GIM: - Research Status: Confirmed Sale Conditions: LIHTC

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Page 3 AFFORDABLE HOUSING SALES COMPARABLES

Source - CoStar Analytics

OFFERING MEMORANDUM | HILLTOP VILLAS APARTMENTS Copyrighted report licensed to Colliers International - 508596. 29 7/19/2018

Page 4 Sales Pricing 601-625 N 13th St - Hilltop Villas SaSleales sP rPicricining g 601-625601-625 N 13thN 13th St St- Hilltop - Hilltop Villas Villas LAS VEGAS PRICE PER UNIT INDEX

LASLAS VEGAS VEGAS PRICES aPRICEle PERs PERP UNITric UNITin INDEXg INDEX SALES PRICING 601-625 N 13th St - Hilltop Villas

LAS LASVEGAS VEGAS PRICE PER PRICE UNIT INDEX PER UNIT INDEX

UNITED STATES PAST YEAR BY PRICE PER UNIT LAS VEGAS PAST YEAR BY PRICE PER UNIT UNITED STATES PAST YEAR BY PRICE PER UNIT LAS VEGAS PAST YEAR BY PRICE PER UNIT UNITEDUNITEDUNITED STATES STATES PAST PAST PASTYEAR YEAR BY YEAR BY PRICE PRICE BY PER PERPRICE UNIT UNIT PER UNIT LASLAS LASVEGAS VEGAS VEGAS PAST PAST YEAR PAST YEAR BY BY YEARPRICE PRICE PERBY PER UNITPRICE UNIT PER UNIT

PRICE PER UNIT SUMMARY FOR SALES IN PAST YEAR

Geography Transactions Low Bottom 25% Median Average Top 25% High PRICE PER UNIT SUMMARY FOR SALES IN PAST YEAR PRICE PER UnitedUNIT States SUMMARY FOR 20,237SALES IN $5,000 PAST YEAR $35,638 $112,000 $146,805 $396,408 $83,333,333 PRICEPRICE PER PER UNITLas UNIT SUMMARYVegas SUMMARY FOR FOR SALES SALES IN PASTIN 184PAST YEAR YEAR $8,750 $42,263 $70,298 $112,960 $148,895 $251,960 Geography Transactions Low Bottom 25% Median Average Top 25% High Downtown/Central Las Vegas 72 $8,750 $34,876 $55,547 $85,495 $113,318 $216,666 UnitedGeography States Transactions20,237 Low$5,000 Bottom$35,638 25% Median$112,000 Average$146,805 Top$396,408 25% $83,333,333High Geography Downtown Las Vegas Transactions 30Low $8,750Bottom $26,972 25% $48,333Median $59,543Average $109,119Top 25% $216,666 High LasUnitedUnited Vegas States StatesSelected Sale Comps 20,23720,237184 7 $5,000$8,750 $5,000 $32,352 $35,638$42,263 $35,638 $38,676 $112,000 $50,000$70,298 $112,000 $51,497$146,805$112,960 $146,805 $69,655 $396,408$148,895 $396,408 $79,310$83,333,333$83,333,333$251,960 Downtown/CentralLasLas Vegas Vegas Las Vegas 18472184 $8,750$8,750 $8,750 $42,263$34,876 $42,263 $70,298$55,547 $70,298 $112,960$85,495 $112,960 $148,895$113,318 $148,895 $251,960$216,666$251,960 DowntownDowntown/CentralDowntown/Central Las Vegas Las Las Vegas Vegas 723072 $8,750$8,750 $8,750 $34,876$26,972 $34,876 $55,547$48,333 $55,547 $85,495$59,543 $85,495 $113,318$109,119 $113,318 $216,666$216,666$216,666 SelectedDowntownDowntown Sale Las LasComps Vegas Vegas 30730$32,352 $8,750 $8,750 $26,972$38,676 $26,972 $48,333$50,000 $48,333 $59,543$51,497 $59,543 $109,119 $109,119$69,655 7/3/2018$216,666$216,666$79,310 Copyrighted report licensed to Colliers International - 508596. Page 67 SelectedSelected Sale Sale Comps Comps 77 $32,352 $32,352 $38,676 $38,676 $50,000 $50,000 $51,497 $51,497 $69,655 $69,655 $79,310$79,310

OFFERING MEMORANDUM | HILLTOP VILLAS APARTMENTS 7/3/2018 30 Copyrighted report licensed to Colliers International - 508596. 7/3/2018Page7/3/2018 67 CopyrightedCopyrighted report report licensed licensed to Colliers to Colliers International International - 508596. - 508596. PagePage 67 67 Sales Volume SALES VOLUMESales Volume 601-625 N 13th St - Hilltop Villas LAS VEGAS METRO SALES VOLUME IN UNITS 601-625 N 13th St - Hilltop Villas LASSa VEGASles Vo METROlum SALESe VOLUME IN UNITS LAS VEGAS METRO SALES VOLUME IN UNITS 601-625 N 13th St - Hilltop Villas

LAS VEGAS METRO SALES VOLUME IN UNITS

DOWNTOWN/CENTRAL LAS VEGAS SUBMARKET SALES VOLUME IN UNITS DOWNTOWN/CENTRAL LAS VEGAS SUBMARKET SALES VOLUME IN UNITS DOWNTOWN/CENTRAL LAS VEGAS SUBMARKET SALES VOLUME IN UNITS

DOWNTOWN/CENTRAL LAS VEGAS SUBMARKET SALES VOLUME IN UNITS

DOWNTOWN LAS VEGAS NEIGHBORHOOD SALES VOLUME IN UNITS DOWNTOWN LAS VEGAS NEIGHBORHOOD SALES VOLUME IN UNITS DOWNTOWN LAS VEGAS NEIGHBORHOOD SALES VOLUME IN UNITS DOWNTOWN LAS VEGAS NEIGHBORHOOD SALES VOLUME IN UNITS

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UNITED STATES CAP RATES PAST YEAR LAS VEGAS CAP RATES PAST YEAR

UNITEDUNITED STATES STATES STATES CAP RATES CAP CAP RATESPAST RATES YEAR PAST YEAR PAST YEAR LAS VEGASLASLAS VEGAS CAP VEGAS RATES CAP RATESPAST CAP YEAR PAST RATES YEAR PAST YEAR UNITED STATES CAP RATES PAST YEAR LAS VEGAS CAP RATES PAST YEAR

CAP RATE SUMMARY STATISTICS IN PAST YEAR

Geography Transactions Low Bottom 25% Median Average Top 25% High CAP RATECAP SUMMARY RATE SUMMARY STATISTICS STATISTICS IN PAST IN YEAR PAST YEAR CAPUnited RATE RATE States SUMMARY SUMMARY STATISTICS STATISTICS IN9,838 PAST YEAR 1.0% IN PAST 3.7% YEAR 5.6% 6.1% 9.2% 37.6% GeographyLas VegasGeography Transactions114TransactionsLow4.2%Low Bottom 5.1% 25%Bottom 25%Median 5.8%Median Average 6.3%Average Top 8.5% 25%Top 25% 12.0%High High UnitedGeographyDowntown/Central StatesUnited States Las Vegas Transactions9,83836 9,838Low5.2% 1.0% 1.0%Bottom 5.4% 3.7% 25% 3.7%Median 6.3% 5.6% 5.6% 6.8%Average 6.1% 6.1% 8.9%Top 9.2% 25% 9.2% 10.0%High37.6% 37.6% LasUnitedDowntown Vegas StatesLas LasVegas Vegas 9,83811416 114 5.2%4.2%1.0% 4.2% 5.6%5.1%3.7% 5.1% 6.8% 5.8%5.6% 5.8% 7.2% 6.3%6.1% 6.3% 9.2% 8.5%9.2% 8.5% 10.0%12.0%37.6%12.0% Downtown/CentralLasSelected VegasDowntown/Central Sale Comps Las Vegas Las Vegas 114364 36 5.6%5.2%4.2% 5.2% 5.6%5.4%5.1% 5.4% 6.4% 6.3%5.8% 6.3% 6.4% 6.8%6.3% 6.8% 7.0% 8.9%8.5% 8.9% 7.0%10.0%12.0%10.0% DowntownDowntown/CentralDowntown Las Vegas Las Las Vegas Vegas 1636 16 5.2%5.2% 5.2%5.6%5.4% 5.6% 6.8%6.3% 6.8% 7.2%6.8% 7.2% 9.2%8.9% 9.2% 10.0%10.0%10.0% SelectedDowntownSelected Sale Las Comps Vegas Sale Comps 164 4 5.6%5.2% 5.6%5.6%5.6% 5.6% 6.4%6.8% 6.4% 6.4%7.2% 6.4% 7.0%9.2% 7.0% 7.0%10.0%7.0% Selected Sale Comps 4 5.6% 5.6% 6.4% 6.4% 7.0% 7.0% 7/3/2018 Copyrighted report licensed to Colliers International - 508596. Page 68

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OFFERING MEMORANDUM | HILLTOP VILLAS APARTMENTS 33 Demographic Overview 811-821 Bridger Ave

DEMOGRAPHICPopulation (1OVERVIEW mi) Avg. HH Size (1 mi)Source - CoStar AnalyticsAvg. Age (1 mi) Med. HH Inc. (1 mi) Population23,575 (1 mi) Avg. HH Size2.2 (1 mi) Average41 Age (1 mi) $23,008Med. HH Inc. (1 mi) 23,575DEMOGRAPHIC RADIUS RINGS 2.2 41 $23,008 RENT COMP LOCATIONS

DEMOGRAHIC SUMMARY

DEMOGRAPHICPOPULATION SUMMARY 1 MILE 3 MILES 5 MILES 2018 Population 23,575 205,959 561,169 Population 1 Mile 3 Mile 5 Mile 20232018 Population Population 25,126 23,575 224,015 205,595 611,568 561,169 Pop2023 Growth Population 2018-2023 6.6% 25,126 9.0% 224,015 9.0% 611,568 2018Pop Avg. Growth Age 2018-2023 41 6.6% 37 9.0% 36 9.0% HOUSEHOLDS2018 Average Age 41 37 36 2018Households Households 8,666 69,804 193,356 2018 Households 8,666 69,804 193,356 2023 Households 9,280 76,171 210,775 2023 Households 9,280 76,171 210,775 Household Growth 2018-2023 7.1% 9.1% 9.0% Household Growth 2018-2023 7.1% 9.1% 9.0% Median HH Income $23,008 $30,416 $35,295 Median Household Income $23,008 $30,416 $35,295 Avg.Average HH Income Household Size 2.2 2.2 2.8 2.8 2.8 2.8 Avg.Average HH Vehicles HH Vehicles 1 1 1 1 1 1 HOUSINGHousing MedianMedian Home Home Value Value $164,650$164,650 $165,576$165,576 $161,036 $161,036 MedianMedian Year Year Built Built 1964 1964 1974 1974 1980 1980

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OFFERING MEMORANDUM | HILLTOP VILLAS APARTMENTS 35 OvervieSourcew - CoStar Analytics OVERVIEW Downtown/Central Las Vegas Multi-Family

12 Mo. Delivered Units 12 Mo. Absorption Units Vacancy Rate 12 Mo. Asking Rent Growth

12 Mo. Delivered0 Units 12 Mo. Absorption168 Units Vacancy6.0% Rate 12 Mo.6.5% Asking Rent Growth

The Downtown/Central Las Vegas Submarket mainly developers focus on higher-end projects in southwest attracts renters0 looking for affordability168 and short Las Vegas6.0% and Henderson. Lack of new product6.5% coupled Thecommutes. Downtown/Central The submarket’s Las Vegas abundance Submarket of older,mainly lower-attracts renterswith looking steady for demand affordability has led and vacancies short commutes. to compress The submarket’s abundancequality inventory of older, helps lowerquality keep rents inventory low, although helps keep recent rents low, althoughsignificantly recent since growth the hasrecession. been notable. This has New attracted construction in this submarketgrowth has has been been notable. minimal New in the construction current cycle in as this developers focusinvestor on higher-end interest projectsto the area, in southwest and transaction Las Vegas volume and Henderson. was Lacksubmarket of new hasproduct been coupled minimal with in thesteady current demand cycle has as led vacanciesstrong to compress here in significantly2017 and 2016. since the recession. This has attracted investor interest to the area, and transaction volume was strong here in 2017 and 2016.

KEYKEY INDICATORS

Absorption Under Constr Current Quarter Units Vacancy Rate Asking Rent Effective Rent Delivered Units Units Units 4 & 5 Star 3,335 5.2% $988 $981 25 0 327 3 Star 15,691 5.5% $850 $834 104 0 0 1 & 2 Star 9,583 7.3% $656 $650 10 0 0 Submarket 28,609 6.0% $813 $801 139 0 327

Historical Forecast Annual Trends 12 Month Peak When Trough When Average Average Vacancy Change (YOY) -0.6% 9.4% 6.3% 13.9% 2009 Q4 6.0% 2018 Q2 Absorption Units 168 5 154 843 2004 Q3 (904) 2010 Q2 Delivered Units 0 88 141 663 2009 Q2 0 2018 Q1 Demolished Units 0 104 0 921 2010 Q4 0 2018 Q1 Asking Rent Growth (YOY) 6.5% 1.8% 2.6% 8.0% 2016 Q2 -9.1% 2009 Q4 Effective Rent Growth (YOY) 7.0% 1.7% 2.7% 7.5% 2016 Q1 -9.1% 2009 Q4 Sales Volume $302 M $136.2 M N/A $370.1 M 2017 Q1 $3.6 M 2009 Q3

Downtown Las Vegas is the central business district and historic as well as residential and retail developments. Downtown is in center of Las Vegas, Nevada. It is the original townsite and was the center of the Las Vegas Valley and just north of the Las Vegas the gambling district of Las Vegas prior to the Strip, and the area Strip, centered on Fremont Street, the Fremont Street Experience still incorporates downtown gaming. As the urban core of the Las and Fremont East. The city defines the area as bounded by I-15 Vegas Valley, it features a variety of hotel and business high-rises, on the west, Washington Avenue on the north, Maryland Parkway cultural centers, historical buildings and government institutions, on the east and Sahara Avenue on the south.

OFFERING MEMORANDUM | HILLTOP VILLAS APARTMENTS 36

5/21/2018 Copyrighted report licensed to Colliers International - 508596. Page 91 Vacancy Downtown/Central Las Vegas Multi-Family

Along with the Strip, Downtown/Central Las Vegas offers prominent office-using employers—such as RSM, the lowest cost of living in the metro. While ongoing Fidelity National Title Insurance, or one of the law revitalization efforts could change that dynamic, firms—typically commute from outside of the submarket. demographics do not support strong demand for new Residents of the submarket rely on the abundance of product. Instead, renters generally choose the submarket retail trade jobs, the eight hospitals located here, and the for its affordability, bolstering demand for the abundance gaming industry. While Vegas’s economy continues to of old 1 & 2 and 3 Star inventory. With very little new diversify, the leisure and hospitality sector still accounts development this cycle, vacancies were more than 200 for a large portion of employment in the metro, and many basis points below the historical average as of 18Q1. renters in Downtown/Central Las Vegas work in the gaming industry. This sector has continued to recover Home values in Las Vegas were considerably impacted since it was hit hard by the recession, and it is expected by the housing bust, and the market is still recovering. to be one of the top-performing sectors of the economy Source - CoStar Analytics Las Vegas had one of the highest foreclosure rates in in the near term. VACANCY the nation and from 2010–15 the median home value in the market was reduced by about 20%. Even though the Downtown Las Vegas is in the midst of a revitalization submarket has some of the most affordable homes in the effort, known as the Downtown Project, launched in 2013 metro, saving up for a 20% down payment could be by Zappos CEO Tony Hsieh. Hsieh promised to provide difficult for many residents, because median household $350 million to launch the program with the goal of incomes tend to be low. This is evidenced by a reinventing downtown Las Vegas as the thriving urban homeownership rate that has declined from 64% in 2007 area it once was by attracting new businesses, retailers, to around 50% today. and residents. Fremont 9, the first 4 Star apartment community built here in more than a decade, is expected While the submarket is home to a substantial to deliver during 18Q1, and the performance of that employment base, the majority of jobs cater to low- asset will help gauge the prospects of Hsieh’s bet on the income workers. Those who work for one of the few area. Along with the Strip, Downtown/Central Las Vegas offers the lowest cost of ABSORPTION,ABSORPTION, NET DELIVERIES & VACANCY NET DELIVERIES & VACANCY living in the metro. While ongoing revitalization efforts could change that dynamic, demographics do not support strong demand for new product. Instead, renters generally choose the submarket for its affordability, bolstering demand for the abundanceof old 1 & 2 and 3 Star inventory. With very little new development this cycle, vacancies were more than 200 basis points below the historical average as of 18Q1.

Home values in Las Vegas were considerably impacted by the housing bust, and the market is still recovering. Las Vegas had one of the highest foreclosure rates in the nation and from 2010–15 the median home value in the market was reduced by about 20%. Even though the submarket has some of the most affordable homes in the metro, saving up for a 20% down payment could be difficult for many residents, because median household incomes tend to be low. This is evidenced by a homeownership rate that has declined from 64% in 2007 to around 50% today.

While the submarket is home to a substantial employment base, the majority of jobs cater to low income workers. Those who work for one of Downtown Las Vegas is in the midst of a revitalization effort, known as the 5/21/2018 Copyrighted report licensed to Colliers International - 508596. the few prominent office-using employers—such as RSM, Fidelity National Downtown Project, launched in 2013 by Zappos CEO Tony Hsieh. Hsieh Page 92 Title Insurance, or one of the law firms—typically commute from outside of promised to provide $350 million to launch the program with the goal of the submarket. Residents of the submarket rely on the abundance of retail reinventing downtown Las Vegas as the thriving urban area it once was by trade jobs, the eight hospitals located here, and the gaming industry. While attracting new businesses, retailers, and residents. Fremont 9, the first 4 Vegas’s economy continues to diversify, the leisure and hospitality sector Star apartment community built here in more than a decade, is expected to still accounts for a large portion of employment in the metro, and many deliver during 18Q1, and the performance of that asset will help gauge the renters in Downtown/Central Las Vegas work in the gaming industry. This prospects of Hsieh’s bet on the area. sector has continued to recover since it was hit hard by the recession, and it is expected to be one of the top-performing sectors of the economy in the near term.

OFFERING MEMORANDUM | HILLTOP VILLAS APARTMENTS 37 LAS VEGAS MULTIFAMILY MARKET REPORT

OFFERING MEMORANDUM | HILLTOP VILLAS APARTMENTS 38 LAS VEGAS MULTIFAMILY OVERVIEW Source - CoStar Analytics

Overview Las Vegas Multi-Family 12 Mo. Delivered Units 12 Mo. Absorption Units Vacancy Rate 12 Mo. Asking Rent Growth 12 Mo. Delivered Units 12 Mo. Absorption Units Vacancy Rate 12 Mo. Asking Rent Growth 2,0482,048 2,0672,067 6.1%6.1% 6.2%6.2%

WhileWhile LasLas Vegas’s Vegas’s recovery recovery initially initially lagged lagged behind behind that that of of many expectedother metros to sustain across thatthe country,growth in the the market near term. has reasons to be optimistic.many other Both metros employment across the and country, population the market growth has have been Developmentwell above the has national been quietaverage compared over the with last the couple of years andreasons show to no be signs optimistic. of slowing Both inemployment the near term. and Median householdexplosion income of hasresidential begun constructionto grow after during several the flat housing years and is expectedpopulation to growth sustain have that been growth well in above the near the term.national Developmentbubble—but has been quietconstruction compared has with picked the up explosion of late, of residential constructionaverage over during the last the couple housing of years bubble—but and show construction no signs hasspecifically picked up in of southwest late, specifically Las Vegas in andsouthwest Henderson. Las Vegas and Henderson.of slowing in Transaction the near term. volume Median in the household first quarter income of 2018 was Transactionsolid due to volumea couple in of the notable first quarter trades. of 2018 was solid has begun to grow after several flat years and is due to a couple of notable trades.

KEY INDICATORS KEY INDICATORS

Absorption Under Constr Current Quarter Units Vacancy Rate Asking Rent Effective Rent Delivered Units Units Units 4 & 5 Star 58,804 6.3% $1,162 $1,143 588 343 3,403 3 Star 75,251 5.2% $932 $915 397 0 356 1 & 2 Star 24,938 8.1% $700 $689 53 0 0 Market 158,993 6.1% $989 $972 1,038 343 3,759

Historical Forecast Annual Trends 12 Month Peak When Trough When Average Average Vacancy Change (YOY) -0.2% 7.9% 6.9% 11.0% 2009 Q4 5.7% 2006 Q2 Absorption Units 2,067 1,851 1,607 5,775 2004 Q2 (1,242) 2007 Q2 Delivered Units 2,048 2,270 1,955 5,911 2008 Q1 0 2013 Q2 Demolished Units 248 317 0 1,464 2006 Q2 0 2018 Q1 Asking Rent Growth (YOY) 6.2% 1.8% 2.5% 7.0% 2015 Q3 -9.4% 2009 Q4 Effective Rent Growth (YOY) 6.6% 1.7% 2.6% 6.6% 2015 Q2 -9.5% 2009 Q4 Sales Volume $2.2 B $893.7 M N/A $2.2 B 2017 Q4 $62.9 M 2009 Q3

OFFERING MEMORANDUM | HILLTOP VILLAS APARTMENTS 39

5/21/2018 Copyrighted report licensed to Colliers International - 508596. Page 110 Source - CoStar Analytics LAS VEGAS MULTIFAMILY VACANCYVacancy Las Vegas Multi-Family

Despite a slow recovery, Las Vegas’s fundamentals recent report, about one fifth of Las Vegas homeowners continue to improve. While the metro unemployment are still underwater on their mortgages. number sits slightly above the national average at about 5%, this is almost half of where unemployment was The recession was particularly destructive here, pushing during the downturn. Jobs have put roofs over heads, vacancies above 10% for a short period. Time and an and apartments and rental homes remain the most improving economy boosted apartment demand, and affordable options. The metro’s homeownership rate vacancies have compressed to around 6.09%. However peaked at 64% in 2007 and today that rate is close to with rents rising and vacancies recovering further, 50%. As a result, the metro’s renter pool has grown development quickly resurfaced. More than 8,000 units substantially, with many former homeowners finding have delivered since 2014, and plenty more are themselves renting apartments. Many residents are underway. As a result, deliveries outpaced absorption in entering the renter pool by default due to one of the 2017, forcing vacancies to expand, while remaining well- highest foreclosures rates in the nation. According to a below the market's historical average. Despite a slow recovery, Las Vegas’s fundamentals continue to improve. While the ABSORPTION,ABSORPTION, NET DELIVERIES & VACANCY NET DELIVERIES & VACANCY metro unemployment number sits slightly above the national average at about 5%, this is almost half of where unemployment was during the downturn. Jobs have put roofs over heads, and apartments and rental homes remain the most affordable options. The metro’s homeownership rate peaked at 64% in 2007 and today that rate is close to 50%. As a result, the metro’s renter pool has grown substantially, with many former homeowners finding themselves renting apartments. Many residents are entering the renter pool by default due to one of the highest foreclosures rates in the nation. According to a recent report, about one fifth of Las Vegas homeowners are still underwater on their mortgages.

The recession was particularly destructive here, pushing vacancies above 10% for a short period. Time and an improving economy boosted apartment demand, and vacancies have compressed to around 6.09%. However with rents rising and vacancies recovering further, development quickly resurfaced. More than 8,000 units have delivered since 2014, and plenty more are underway. As a result, deliveries outpaced absorption in 2017, forcing vacancies to expand, while remaining well below the market’s historical average.

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OFFERING MEMORANDUM | HILLTOP VILLAS APARTMENTS 40 LAS VEGAS EcMULTIFAMILYonomy ECONOMY Source - CoStar Analytics Economy Las Vegas Multi-Family LAS VEGAS EMPLOYMENT BY INDUSTRY IN THOUSANDS Las Vegas Multi-Family LAS VEGAS EMPLOYMENT BY INDUSTRY IN THOUSANDS

LAS VEGAS EMPLOYMENT BY INDUSTRY IN THOUSANDSCurrent Jobs Current Growth 10 Yr Historical 5 Yr Forecast

NAICS Industry JobsCurrent JobsLQ MarketCurrent GrowthUS Market10 Yr HistoricalUS Market5 Yr ForecastUS Manufacturing 24 0.3 3.15% -0.41% -0.98% -1.08% -0.39% -1.23% NAICS Industry Jobs LQ Market US Market US Market US Trade, Transportation and Utilities 178 1.0 2.64% 1.18% 0.89% 0.42% 0.62% 0.28% Manufacturing 24 0.3 3.15% -0.41% -0.98% -1.08% -0.39% -1.23% Retail Trade 109 1.0 1.10% 0.35% 0.79% 0.30% 0.64% 0.28% Trade, Transportation and Utilities 178 1.0 2.64% 1.18% 0.89% 0.42% 0.62% 0.28% Financial Activities 51 0.9 3.11% 0.70% 0.63% 0.26% 1.54% 0.76% Retail Trade 109 1.0 1.10% 0.35% 0.79% 0.30% 0.64% 0.28% Government 105 0.7 4.76% 0.11% 0.41% -0.05% 0.83% 0.50% Financial Activities 51 0.9 3.11% 0.70% 0.63% 0.26% 1.54% 0.76% Natural Resources, Mining and Construction 64 1.2 9.07% 3.87% -3.96% -0.35% 2.89% 1.63% Government 105 0.7 4.76% 0.11% 0.41% -0.05% 0.83% 0.50% Education and Health Services 100 0.6 4.65% 1.61% 4.25% 2.04% 2.67% 1.27% Natural Resources, Mining and Construction 64 1.2 9.07% 3.87% -3.96% -0.35% 2.89% 1.63% Professional and Business Services 140 1.0 1.81% 2.46% 2.06% 1.52% 1.82% 1.50% Education and Health Services 100 0.6 4.65% 1.61% 4.25% 2.04% 2.67% 1.27% Information 11 0.6 -3.47% 0.26% -0.26% -0.95% 0.43% 0.29% Professional and Business Services 140 1.0 1.81% 2.46% 2.06% 1.52% 1.82% 1.50% Leisure and Hospitality 294 2.7 1.42% 1.87% 0.71% 1.79% 2.23% 1.29% Information 11 0.6 -3.47% 0.26% -0.26% -0.95% 0.43% 0.29% Other Services 32 0.8 3.81% 0.77% 2.21% 0.44% 0.66% 0.41% Leisure and Hospitality 294 2.7 1.42% 1.87% 0.71% 1.79% 2.23% 1.29% Total Employment 1,000 1.0 2.97% 1.28% 0.77% 0.68% 1.67% 0.80% Other Services 32 0.8 3.81% 0.77% 2.21% 0.44% 0.66% 0.41% Source: Moody's Analytics Total Employment 1,000 1.0 2.97% 1.28% 0.77% 0.68%LQ 1.67% = Location Quotient 0.80% Source: Moody's Analytics YEAR OVER YEAR JOB GROWTH LQ = Location Quotient

YEAR OVER OVER YEAR YEAR JOB GROWTH JOB GROWTH

Source: Moody’s Analytics

OFFERING MEMORANDUM | HILLTOP VILLAS APARTMENTS 41

5/21/2018 Copyrighted report licensed to Colliers International - 508596. Page 123 5/21/2018 Copyrighted report licensed to Colliers International - 508596. Page 123 LAS VEGAS MULTIFAMILY ECONOMY Source - CoStar Analytics

Economy Las Vegas Multi-Family

DEMOGRAPHICDEMOGRAPHIC TRENDS TRENDS

Current Level Current Change 10-Year Change Forecast Change

Demographic Category Metro U.S. Metro U.S. Metro U.S. Metro U.S. Population 2,253,945 327,709,991 2.4% 0.7% 1.7% 0.8% 2.4% 0.7% Households 831,404 125,947,070 2.5% 0.9% 1.6% 0.8% 2.7% 1.1% Median Household Income $57,811 $60,526 4.3% 3.5% 0.1% 1.6% 2.4% 3.0% Labor Force 1,100,101 161,536,667 3.9% 1.0% 1.2% 0.5% 1.8% 0.8% Unemployment 5.2% 4.1% 0.2% -0.3% 0% -0.1% - - Source: Moody’s Analytics

POPULATION GROWTH LABOR FORCE GROWTH INCOME GROWTH

Source: Moody's Analytics

OFFERING MEMORANDUM | HILLTOP VILLAS APARTMENTS 42

5/21/2018 Copyrighted report licensed to Colliers International - 508596. Page 124 DOWNTOWN PROJECT

OFFERING MEMORANDUM | HILLTOP VILLAS APARTMENTS 43 Source - CoStar Analytics

Downtown Project is a privately-funded, for-profit enterprise dedicated to helping revitalize part of downtown Las Vegas by investing in people.

Founded in January 2012, it is the umbrella under which an extensive portfolio of small business, tech, real estate, and other significant local investments are developed, coordinated, and managed. To date, Downtown Project has allocated/invested $350 million towards this vision, resulting in more than 165 new businesses and more than 1,000 new jobs.

Downtown Project was founded in January 2012 with the idea that if you accelerate co-learning, collisions, and connectedness in the city’s urban core, productivity, innovation, growth, and happiness will fall into place.

The Downtown Project has allocated $350 million toward revitalization, with $200 million in real estate and development, $50 million in small businesses, $50 million in technology and startups through VegasTechFund, and $50 million in arts and culture, education, and healthcare.

A large portion of the investment was allocated toward real estate and development in the Fremont East/East Village districts of downtown Las Vegas. Downtown Projects controls approximately 45 acres.

OFFERING MEMORANDUM | HILLTOP VILLAS APARTMENTS 44 LAS VEGAS OVERVIEW

OFFERING MEMORANDUM | HILLTOP VILLAS APARTMENTS 45 LAS VEGAS ECONOMIC TRENDS (Las Vegas Convention and Visitors Authority)

Statistic 2012 2013 2014 2015 2016

Visitor Volume 3 9,7 27,02 2 39,668,221 41,126,512 42,312,216 42,936,109

Gaming Revenue $9.3bn $9.6bn $9.5bn $9.6bn $9.7bn Las Vegas Room Occupancy 84.4% 84.3% 86.8% 87.7 % 89.1% Area Overview Average Daily Room Rates $108.08 $110.72 $116.73 $120.67 $125.96 Clark County, the most populous of

Conventions Held 21,615 22.027 22,103 21,306 21,864 Nevada’s 17 counties, is home to more than two million residents, about 73% Convention Delegates 4,944,014 5,107,416 5,169,054 5,761,366 6,310,616 of the state’s population. The estimated Total En/Deplaned 41,667,596 41, 8 557,0 0 9 42,878,346 45,389,074 47,43 5,640 average household income is approximately Passengers $62,201. The city of Las Vegas sits at the Room Inventory 150,524 150.103 150,126 149,612 149,339 heart of Clark County and is internationally renowned as the world capital of entertainment. Las Vegas’ gaming, dining, VISITOR VOLUME VS. GAMING REVENUE shopping and business conventions are major attractions for national and international visitors. Las Vegas has approximately 149,339 hotel rooms.

Over 42.9 million people visited Las Vegas in 2016, an all-time high

OFFERING MEMORANDUM | HILLTOP VILLAS APARTMENTS 46 Las Vegas Employment Overview As of 2016, Las Vegas unemployment stands at 6.2%, which is about 60 basis points lower than it was in 2015 at 6.8%. Tourism is the highest economic sector for Las Vegas representing 30.8% of the market, however professional and business services and retail trade make a significant impact representing 13.7% and 11.7% of the market, respectively.

LAS VEGAS TOP EMPLOYERS Firm Employees Gaming, government, tourism and education are the leading areas of Station Casinos Inc. 13,000-13,499 Nellis Air Force Base 12,000-12,499 employment in Las Vegas. Although in recent years, several new industries Boyd Gaming Corp. 9,000-9,499 Las Vegas Sands Corp. 8,500-8,999 such as data centers, high tech manufacturing and healthcare services are Wynn Las Vegas LLC 8,000-8,499 helping to diversify the local economy. MGM Resorts International 8,000-8,499 Bellagio LLC 8,000-8,499 Aria Resort & Casino 7,000-7,499 300,000 new jobs Prestigious Companies Mandalay Bay Resort & Casino 7,000-7,499 Wal-Mart Stores Inc. 6,000-6,499 Expected In The Next 20 Years With Major 8 Fortune 1000 Companies Headquartered Gains In Technology, Healthcare & In Las Vegas Caesars Entertainment Corp. 5,500-5,999 Infrastructure Sectors The Valley Health System 5,000-5,499 University of Nevada-Las Vegas 5,000-5,499 Las Vegas Metropolitan Police Department 4,500-4,999 $2.5 Billion+ $4 Billion+ Mirage Casino-Hotel 4,500-4,999 In Manufacturing/Tech Facility In Public Infrastructure The Venetian Casino Resort 4,000-4,499 Investment Underway Investment Underway SUPERVALU Inc. 4,000-4,499 Cosmopolitan of Las Vegas 4,000-4,499 The Palazzo Casino Resort 3,500-3,999 University Medical Center of Southern Nevada 3,000-3,499

OFFERING MEMORANDUM | HILLTOP VILLAS APARTMENTS 47 Las Vegas Highlights

20,000 Seats NHL Expansion The Las Vegas Raiders T-Mobile Arena, a multi-use indoor arena T-Mobile Arena will host over 150 events The relocation of the Oakland Raiders on the Las Vegas Strip opened in April 2016 per year and is the current home of the is anticipated to create a $600+ million NHL Golden Knights economic impact add 450,000+ incremental visitors and host 45+ events annually

Mandalay Bay LVCC Expansion $1 billion public Convention Center Las Vegas Convention Center works project is currently undergoing a $2.5 billion, recently underwent a 350,000 square foot underway to modernize and expand 600,000 square foot expansion to absorb expansion and is now the 5th largest Las Vegas vehicular infrastructure convention center in North America excess demand

Steady Growth The University continues to grow with a total student headcount of 28,600 (2015)

OFFERING MEMORANDUM | HILLTOP VILLAS APARTMENTS 48 Las Vegas #1 Trade Show Destination for 22 consecutive years -Trade Show News Network

3 out of the 5 Largest Convention Centers in the U.S. are Located in Las Vegas Convention Centers While Las Vegas has historically been known as a gaming destination, the city’s diverse non-gaming allure continues to strengthen and has far surpassed gambling demand. 66,500 jobs and generates One such demand driver is the unparalleled convention and meeting space capacity more than $9.3 billion in available throughout the city. In 2016, Las Vegas held nearly 22,000 conventions and hosted over 6.3 million convention delegates. economic impact. The Las Vegas M.I.C.E . Las Vegas also hosted four of the top 10 and ten of the top 22 largest (meetings, incentives, conferences, and events) sector conventions/trade shows held in the U.S.

Las Vegas visitation numbers posted its 3rd consecutive year of growth with a record high of 42.9M visitors in 2016. A 10% increase over its pre-recession peak.

There is also a 17.8 increase in International visitation from 2013-2015. McCarran International Airport benefits from the increased visitation making it the No. 26 busiest airport in the world.

OFFERING MEMORANDUM | HILLTOP VILLAS APARTMENTS 49 Developments in the Las Vegas valley

NFL - LAS VEGAS RAIDERS $1.9 Billion estimated cost Professional Sport Franchises Las Vegas’ First NFL Team – On March 27th, 2017, the NFL owners approved the Raiders’ relocation to Las Vegas. The $1.9 billion stadium is expected to take As a means to continue the diversification three years to build and will be located near the southern end of the Las Vegas of its economy, Nevada successfully Strip (near Mandalay Bay). This new stadium will also host world-class events received its first professional sports including college football games, big-name concerts, major UFC fights, March franchise in 2016 concurrent with the Madness, soccer matches and political events. The Raiders are expected to completion of its T-Mobile Arena. play in the 65,000-seat domed stadium by the 2020 season. The Southern Furthermore, in November 2016, Las Nevada Tourism Infrastructure Committee (SNTIC) estimates that Las Vegas Vegas approved a hotel tax ordinance to can expect $100 million worth of media exposure a year from the Raiders help fund the stadium for the NFL’s which is excellent publicity across the Las Vegas community. Oakland Raiders relocation.

OFFERING MEMORANDUM | HILLTOP VILLAS APARTMENTS 50 Developments in the Las Vegas valley This popular destination is the 31st largest Metropolitan Statistical Area in the United States with over two million residents. With its strong economic recovery, Las Vegas has about $15 billion in construction projects that are planned, proposed or under construction. The following pages include a summary of these projects.

WYNN PARADISE PARK RESORTS WORLD $1.5 Billion estimated cost $4 Billion estimated cost LAS VEGAS PARK MGM & Wynn Resorts announced “Wynn Broke ground May of 2015. Upon their Paradise Park” as their latest project CONVENTION CENTER 2020 completion date, this $4 billion NOMAD LAS VEGAS which has been estimated to cost $1.5 EXPANSION Asian-themed resort will include 3,000 billion. This project will be built on the hotel rooms and will consist of 175,000 $450 Million estimated cost

130-acre golf course located east of $2.3 Billion estimated cost square feet of gaming. It’s estimated Wynn Las Vegas and Encore Resort that there will be 3,500 slot machines MGM Resorts International and Sydell

and Casino. The idea is to transform and table games. Genting BHD, Group announced a partnership to The Las Vegas Convention and Visitors The Wynn Golf Club into an expansive Southeast Asia’s largest casino rebrand Monte Carlo Resort & Casino Authority (“LVCVA”) has a planned new development which would include operator, is developing this property in with two distinct hotel experiences expansion and renovation project a 20-acre lagoon which would host multiple phases. The first phase is — Park MGM and NoMad Las Vegas. intended to make the Las Vegas watersports in the day and fireworks expected to be completed in 2019. Costing approximately $450 million to Convention Center the best meeting at night, a 1,000-room hotel tower, Once fully finished, there will be four construct, the renovation and rebrand and convention facility in the World. approximately 260,000 square-feet of towers totaling the room count to will touch every aspect of the The $2.3 billion project, named the Las meeting space, new restaurants, new 6,583. Resorts World Las Vegas will property. Experiences include: Vegas Global Business District, is the retail, and a white sandy beach with a help the Las Vegas employment market “a Las Vegas version of Sydell’s widely largest economic development boardwalk. Construction will begin the by employing 13,000 direct and indirect acclaimed NoMad Hotel, and the initiative the LVCVA has undertaken end of 2017 or early 2018. It’s been jobs. It will also contribute greatly to launch of a new luxury hotel named since the Las Vegas Convention estimated to open in 2020. the Las Vegas economy which is Park MGM.” Construction is expected Center was originally built in the late projected to generate $155 million in to commence in late 2016 and 1950s. The expansion project is annual tax revenue. conclude in late 2018. expected to lead to an additional 480,000 new attendees as current conventions grow and through attracting an estimated 20 new trade shows and conventions. OFFERING MEMORANDUM | HILLTOP VILLAS APARTMENTS 51 Developments in the Las Vegas valley GOLDEN KNIGHTS HOCKEY TEAM PRACTICE FACILITY $30 Million estimated cost

In October of 2016, Downtown Summerlin held a groundbreaking event to kick off the construction of the Las Vegas NHL’s practice facility. Costing $30 million to construct, this 146,000 square-foot facility is located near Pavilion Center Drive and Griffith Peak Drive and will include two full sheets of ice that will service not only Las Vegas’ first major professional NHL sports team (Vegas Golden Knights) but also local youth and adult leagues. This practice facility opened in September of 2017. Additionally, the Vegas Golden Knights are playing in the 2017-2018 season and will play more than 40 home games each season at the T-Mobile Arena.

HOME TO THE FIRST PROFESSIONAL SPORTS FRANCHISE IN LAS VEGAS.

OFFERING MEMORANDUM | HILLTOP VILLAS APARTMENTS 52 Developments in the Las Vegas valley This popular destination is the 31st largest Metropolitan Statistical Area in the United States with over two million residents. With its strong economic recovery, Las Vegas has about $15 billion in construction projects that are planned, proposed or under construction. The following pages include a summary of these projects.

UNION VILLAGE LAS VEGAS MEDICAL DISTRICT $1.6 Billion estimated cost & UNLV MEDICAL LAS VEGAS PROJECT NEON Union Village is the first Integrated SCHOOL Health Village in the world and is listed ALL NET ARENA $900 Million estimated cost as the “largest healthcare building $3.6 Billion estimated cost project in the United States,” $1.4 Billion estimated cost Project Neon is the largest public according to Health Facilities Manage- works project in Nevada history. The Las Vegas Medical District was ment. This +/-$1.6 billion project is The All Net Arena’s site is located on Costing $900 million to complete, this initially concieved in 2002 in order to located at U.S. 95 and Galleria Drive in the north end of the Las Vegas Strip project will widen 3.7 miles of created a cohesive area for medical Henderson, Nevada. Sitting on where the former Wet ‘n’ Wild site Interstate 15 between Sahara Avenue education and healthcare that was 228-acres, this mixed-use healthcare was once located (just south of the and the “Spaghetti Bowl” interchange central to the Las Vegas Valley. It is complex is projected to create more SLS Resort). Construction is in downtown Las Vegas. This is known currently undergoing a $3.6 billion than 17,000 direct, indirect and underway on this $1.4 billion project for being the busiest stretch of expansion which is inclusive of a UNLV construction jobs. Once fully complete and will consist of +/-860,000 square highway in Nevada with 300,000 Medical School. This district is in 2022, it is expected to attract feet once completed in 2019. vehicles per day (one-tenth of the expected to bring in $181 million in 15,000 to 30,000 people a day. Additionally, the All Net Arena will state population). Currently, this Government revenue, as well as 24,182 Henderson Hospital opened fall of include a 22,000 seat retractable corridor has approximately 25,000 jobs by 2030. 2016 and is located inside the Union roof, a Victory Plaza shopping/dining lane changes in an hour and it’s been Village development. Costing $168 district, and a 44-story hotel with 500 predicted that traffic will double along million to construct, this local specialty suites. this stretch by 2035. Project Neon has acute-care hospital is part of the an estimated completion date of 2019. Valley Health System.

OFFERING MEMORANDUM | HILLTOP VILLAS APARTMENTS 53 PREPARED BY: 69 countries Tom Naseef, CCIM, SIOR Garry Cuff, CCIM Senior Vice President Vice President $2.7 +1 702 836 3720 +1 702 836 3716 [email protected] [email protected] billion in annual revenue* Jeff Naseef Phillip Frank Associate Senior Associate +1 702 836 3731 +1 702 836 3775 [email protected] [email protected] 2.0 billion square feet under management 15,400 professionals and staff $116 billion in total transaction value

*All statistics are for 2017, are in U.S. dollars and include affiliates.

Copyright © 2018 Colliers International. The information contained herein has been obtained from sources deemed reliable. While every reasonable effort has been made to ensure its accuracy, we cannot guarantee it. No responsibility is assumed for any inaccuracies. Readers are encouraged to consult their professional advisors prior to acting on any of the material contained in this report.

OFFERING MEMORANDUM | HILLTOP VILLAS APARTMENTS 54