2018 NEWSLETTER

We hope you enjoy reviewing our first annual newsletter highlighting some of our activity from 2018 and including a few notes regarding our anticipated focus for 2019. RGI and Marc Realty Capital (“MRC”) have remained very active since the downturn in 2008. Between 2009 and 2015 we were focused on buying a deal every 10 days in core Chicago neighborhoods, mostly from distressed sellers. In 2016, we were forced to shift away from Chicago multifamily as pricing appeared too high for our risk tolerance. Rather than limit ourselves to one niche market, we spent significant time finding operating partners nationally to capitalize on numerous and potentially uncorrelated niche markets ranging from real estate to oil and gas to revenue generating growth companies. We even traveled to Dubai and sub-Saharan Africa in search of mispriced opportunities.

While we are in the process of developing several institutional real estate assets, we tend to also thrive in mid-market private investment deals.

50% or more of a deal’s success is based on the market, which we can not control. However, we do have control over buying the right assets in attractive markets as well as partnering with and overseeing the best operators.

BELOW IS A SAMPLING OF SOME OF THE DEALS THAT RGI SUCCESSFULLY COMPLETED IN 2018: REAL ESTATE

800 S WELLS, CHICAGO, IL $150,000,000 All-In Basis DECEMBER 21, 2018

This transaction is the largest ever condo deconversion globally, comprising 449 residential units, 250,000 NRSF of retail and office space, and 150 parking spaces. RGI partnered with The Wolcott Group, MRC and Fred Bronstein running point for the real estate team at Elliott Management Corporation to purchase this building known as “River City.” If fully rented today, in its current condition, the as-is cap rate of this purchase is around 6% and we believe we will stabilize this to over a 7% cap rate. The all-in project costs will exceed $150,000,000. The acquisition basis on the residential piece of the deal is $202,000 per door and the acquisition basis on the commercial is $82 per NRSF (assumes $30,000 per parking space). We believe our purchase was opportunistic given that Related is building 11,000,000 SF to the direct south, Lend Lease is building 4,000 apartment units to the direct north, Blackstone is investing $600,000,000 to improve the Willis Tower 4 blocks to the north, and across the river to the west 601 Capital is developing 3,000,000 SF of commercial anchored by Walgreens’ downtown HQ. While we are modeling a 15% IRR on a 5-year hold, the RGI Principals believe the IRR achieved will be higher given the unprecedented action in the immediate vicinity of the subject property.

We are proud of the hard work, persistence, legal expertise, creativity and collaborative teamwork that enabled us to execute this complex transaction. 1/10 RGI AND DDG PARTNERSHIP

RGI, MRC and DDG are currently live on two development deals in which we recently secured equity from a single source investor. The partnership’s most high-profile deal is a 260-room lifestyle hotel with a total development budget of $90m. The iconic brand we are implementing will be a great fit for the West Loop location that we are under contract to purchase. We are currently in the zoning process and the will be 50% debt and 50% equity. Our development yield on cost will be around 10%. At 1400 North Orleans, RGI, MRC and DDG are building an $88M apartment building consisting of 252 units. The $350,000 per door basis is well below exit comps which are around $500,000 per door. Our untrended yield on cost is 6.25% and the market exit cap rates for stabilized buildings such as these are 4.5% to 5.25%. This means our margin on cost is between 19% to 39%. We recently partnered with JAB to build a smaller new construction apartment at 227 W North and exited the deal at a 2x on equity, so we have a lot of momentum in this section of Old Town.

We are also working with DDG on compelling deals in Southern California, Miami Beach and Wynwood. We anticipate growing this partnership to over $1B+ of development deals.

RGI AND CHURCHILL PARTNERSHIP

RGI has partnered with Churchill, which is led by Justin Ehrlich and Sorabh Maheshwari, to capitalize on the distress that is pervasive throughout the NYC condominium development market. Prior to founding Churchill in 2013, Justin Ehrlich was a prolific and successful investor having built 2 million square feet of condos mostly in the Tribeca area between 2009-2013. Prior to Churchill, Sorabh ran the credit portfolio for Onex Real Estate, focusing primarily on Manhattan lending markets. Since inception, Churchill has originated over $1B of loans in Manhattan and the best locations in Brooklyn. In addition to issuing loans and structured products, Churchill has been buying distressed debt throughout Manhattan. We love the fact that Churchill’s deals can achieve a 15-20% IRR if the developer can successfully pay off, and, if the project ends up troubled, Churchill has the ability to finish the development and deliver its investors a strong equity multiple. There will be continued distress and therefore opportunity in the Manhattan residential condominium market over the next few years and we anticipate that our already robust activity with Churchill will increase in 2019 and 2020. In addition to the residential distress, we believe that traditional banks will soon have to write down their loans backed by NYC retail and we are ready to act upon on these opportunities as they emerge.

5181 SOUTH HARVARD AVE, TULSA, OK (WATERFORD APARTMENTS) Purchased for $26,372,000 NOVEMBER 1, 2018

RGI, along with Marc Kulick and his firm, Vesta Realty Partners, purchased a 97% occupied 344-unit multi-family apartment complex in Tulsa, OK. The total project cost equates to $68,500 per unit which is 10%+ less than the sales comps in the area. The metrics are compelling with the as-is cap rate over 6.5%, a projected investor IRR over a 10-year hold at 17.0%, and year 1 cash-on-cash return at over 10%.

We locked in a 10-year loan at closing which limits global macro risks. Our DSCR is over 1.8x so there would have to be a lot of pain in Tulsa and or the broader US market to impair our investment.

The economy in Tulsa is growing and diversifying from being purely energy driven. Tulsa has been the biggest winner in the Aerospace industry with American, Spirit, and several smaller players moving substantial facilities to Tulsa. Furthermore, both St Francis and St Johns have anchored a tremendous medical expansion with 5 new facilities being delivered throughout 2018, and at least 3 scheduled for 2019. There has also been substantial growth in the financial sector backed by George Kaiser and the Bank of Oklahoma.

Despite the above, the main reason we made this investment was to establish a relationship with Marc Kulick whom we believe to be one of the nation’s most talented emerging property managers. We plan on helping Kulick grow his management portfolio from 2,000 units to over 10,000 units within the next 5 years. You will probably be hearing a lot about Kulick from RGI’s principals. We love the fact that he lived in all the properties he managed over the past decade up until 3 months ago when his girlfriend forced him to move into a house. 2/10 345 E 33RD, MANHATTAN – SOLD INVESTMENT DATE: AUGUST 1, 2017 EXIT DATE: DECEMBER 18, 2018 INVESTOR IRR: 18.58% EQUITY MULTIPLE: 1.27X

RGI partnered with Jared Pinchasick (JAM Partners) to purchase this 17-unit apartment building located in Murray Hill on August 1, 2017. The walk-up building was purchased for $7,200,000 which equates to $424,000 per unit, $678 PSF, and a cap rate of 4.00% on as-is income. The plan – which we executed on budget, ahead of schedule and with rents higher than proforma – was to stabilize to between a 5.5% and 6.0% yield on cost. We capitalized the deal with a 2-year construction loan at 63% of total project cost. We entered this deal contemplating that the downside scenario could be execution risk coupled with rising cap rates during our stabilization period. If cap rates did rise, we would own a fully rented apartment building with low leverage in the best city in the world while we waited for the market to rebound. During our holding period of this asset, the apartment sales market in NYC was negatively impacted by both the crash occurring in residential condos as well as rising cap rates and interest rates. Despite a correction in the NYC apartment market, we were able to successfully exit this asset at an investor level IRR of 19.0%.

Had the sales world been as fluid and robust as it was when we bought this asset, our IRR would have been much higher. Nevertheless, we are certainly excited about getting everyone such a great IRR given the minimal risk we believe we took on this investment.

746 PROSPECT PL, BROOKLYN, NY Purchased for $1,490,000 AUGUST 14, 2018

RGI partnered with a local operator to purchase this off market 6-unit apartment building in Brooklyn for $331 PSF / $298,000 per unit. This is our 3rd deal with the operator. Our PSF and per unit bases are well below comparable trades. The property is in a gentrifying area that is close to a subway station as well as the second largest park in NYC – Prospect Park. The area defines hipster and the economics on this transaction are compelling. The deal is all about handling the rent-controlled units. At closing we had one market rate unit and 5 rent controlled / stabilized units. We have successfully bought out 2 of the 5 non-free market units (“NFM”) and we are currently in the process of rehabbing the 3 free market (“FM”) units while negotiating the 3 remaining NFM units. With just the 3 FM units, we will stabilize to a 6.5% cap rate and if we get all 6 FM units, then we will be at north of a 7% cap rate. We are unlevered on this deal as we did not want to add a layer of risk to a deal that hinged on negotiations with unsophisticated counter parties. Our operating partner is doing a great job managing this deal. We believe this to be a relatively low risk investment given that we are all cash, and this is a great location at a great basis. Our mark to market IRR is over 20% and we may consider a sale or refinance in 2019. We are actively seeking to purchase more properties with the operator, however the market may remain too hot for us to buy similar deals at the disciplined pricing RGI requires to transact.

RGI AND R2 PARTNERSHIP 2018 ACTIVITY

RGI and R2 have partnered on over 15 deals in the past decade, and we have 3 deals we executed in 2018 that we would like to highlight:

RGI partnered with R2 to purchase Germania Place, an iconic Chicago asset located at 108 W Germania. The as-is cap rate was just over 5.0% and we seek to stabilize this to over a 6.5% cap rate. This deal was purchased in a trade from the sale of the northwest corner of Fulton and Halsted to Thor Equities. Germania Place is a trophy asset with an amazing location. R2 continues to be a strong operating partner of ours and we have several well performing investments with them.

Another deal we want to highlight with R2 as an operating partner is the Loft Portfolio which is comprised of 500,000 SF of Chicago loft office space and 75,000 SF of land sites in core Chicago locations. This was a $150M deal. We have sold 2 of the 9 Loft Portfolio assets that we acquired with R2 and an institutional partner and we should be selling the remaining 7 assets shortly.

The last deal we want to highlight in which R2 is our operating partner is the Alden Hotel, located at 2925 N Indian Creek in Miami Beach. The asset comprised 72 condo hotel units and through R2 and Aryn Spahr’s tremendous efforts, we now own all 72 units in a single pin. 3/10 RGI was invited to participate in this deal by R2 due to our intimate and local knowledge of Miami Beach and this particular submarket of Mid Beach in which also sits the Faena and The Edition. Our acquisition basis is $230,000 per door which is significantly below both replacement costs and hotel comps in this area.

In addition to the above, R2 and RGI successfully exited our 30,000 SF property at 1000 W Washington at an 18% IRR. We also sold 1210 W Lake, a 12,000 SF bow truss building, at north of a 30% IRR.

2513 HOLT ROAD, INDIANAPOLIS, INDIANA Purchased for $5,400,000 DECEMBER 6, 2018

RGI invested in this 141,785 SF industrial facility in Indianapolis with Dayton Street as the sponsor.

This was a single tenant facility leased to Advanced Waste Services of Indiana through 2028. The lease is guaranteed by Covanta Holdings Corporation (CVA), a publicly traded company on the NYSE.

The 10-year NN lease is fully guaranteed by CVA. The going in cap rate is 8.75% and the year 1 cash on cash is 10.6%. There appears to be minimal downside. By the time the current lease expires, we expect all of the equity to be returned and the loan will be paid down by $950k. The basis of the property will be down to $18.50 PSF from our going in basis of $34.00 PSF. The Year 5 Investor IRR is projected to be 16.23% with an equity multiple of 1.91x.

2500 N MILWAUKEE, CHICAGO, IL Contributed to Fifield Development Venture at $13,560,000 JUNE 17, 2018

RGI partnered with MRC and Terraco to purchase this property in 2014 for $8,900,000. Scott Gendell of Terraco performed well by getting the property zoned for the current program that Fifield is now executing. Fifield is developing 67,000 SF of retail and 220 residential units.

We were attracted to the original investment because it is not often we can buy over 3 acres of land in an established yet growing neighborhood like Logan Square for under $3,000,000 per acre. Having local expertise is irreplaceable and that is why we always work with a top operating partner when purchasing an asset outside of our backyards.

111 S PEORIA, CHICAGO, IL New Construction Condo Development for $85,000,000 100% SELL OUT IN DECEMBER 2018

We put this then vacant 28,500 SF site under contract in 2014 for $6,250,000 with a zoning condition of us achieving a 5.0x FAR. The acquisition price of $31 per zoned SF was safe at the time for both an apartment and condo basis. We encountered a two-year zoning battle which included a lawsuit from neighbors against us and the city of Chicago. The two-year fight was worth it as the settlement with all interested parties was that we build condos on this site and not a rental product. We closed on this land purchase in 2016. With a projected basis of $436 per net salable SF, the Google effect and continued West Loop momentum, and a complete lack of new construction condos in Chicago, we were confident that we could achieve at least a 2.0x on our equity with 75% leverage. At the time we started building this 81-unit project, RGI / MRC was responsible for over 33% of the new construction condos being built in Chicago as most developers hurt in the crash had shifted to apartments.

Our thesis proved correct as we are now 100% sold out and we achieved a 2.5x on our invested equity.

4/10 1951 NE 167TH ST AND 16890 NE 21ST AVE, NORTH MIAMI BEACH FL $3,250,000 FEBRUARY 19, 2018

We formed a joint-venture between RGI and Chaim Cahane (Forte Capital Management) to purchase two apartment buildings totaling 30 units in North Miami Beach. We had studied the Miami market for over 5 years but had not found a qualified operating partner until recently and we decided to pursue this deal with Chaim. This asset is similar to the properties purchased by RGI / MRC in 2009 to 2015. These two buildings were owned by a single seller and Chaim sourced this as an off-market acquisition. The basis was far below replacement cost, the area is rapidly improving, and the sponsor had successfully implemented an identical value-add deal around the corner from our subject properties. We made the acquisition at a 6.5% cap rate and after improving the properties we should be north of a 6.5% yield on cost in a market that trades at a 5.0% cap rate.

ALTERNATIVE INVESTMENTS Our team has made and investments that range from pre-profit startups to later stage pre-IPO companies. Listed below are a selection of investments that members of our team have made directly or through entities they control:

RIPPLE Stock Purchase DECEMBER 10, 2018

RGI purchased shares from an employee of Ripple that was sourced by our partners at Nebari. We did not purchase coins, but bought equity in Ripple which is an operating company that has a software business and owns XRP coins. Ripple allows banks to send real-time international payments to each other without the need for a central counterparty or clearance hub and is designed in a way that it complies with all the banks and central banking institutions. Thus, it removes enormous amount of costs and inefficiencies from the FX and banking system. Ripple can be implemented on top of the swift infrastructure which all the banks currently have. Ripple, specifically, is solving the valid problem of international remittances which is a $700B market according to World Bank Estimates.

We purchased Ripple equity at a $2B valuation ($12/share). With 60B XRP coins controlled by Ripple, $300M of USD cash, as well as $20M of 2018 revenue from their blockchain software business, we saw this as an opportunity with great asymmetric upside. At the current price of $0.30 per XRP coin, Ripple’s owned XRP have a value of $18B. The volume of traded XRP does not support Ripple selling all of the coins it can as quickly as possible. However, given that this is the second largest coin by market cap, with a public float of $15B, Ripple’s own coins in its balance sheet clearly have real value. The company has 7B XRP outside of escrow today and 53B within escrow. It is worth noting that the 7B of XRP not in escrow is worth slightly more than our purchase price of $2B.

Prior to Ripple, we experimented in the cryptocurrency market when Bitcoin (“BTC”) was trading at $5,000 per coin. After receiving a 2x on our investment through both dollar cost averaging BTC purchases and proactively trading alt coins with our trader, Aron Hiltzik, we sold our crypto assets near the peak of the market with BTC trading at almost $20,000. We had doubled our investment within a short period in a highly speculative asset class, with no real experts, and in which we have no expertise or knowledge. We had no plan to invest in the crypto market again but given that we could purchase XRP at under 10% of its then current value, we saw this as a compelling investment with astronomical upside.

In addition, the software business has clients including Itaú, Santander, and American Express, so if the bank transfer business succeeds, we make our money through the venture capital aspect of this investment. Furthermore, if the company establishes itself as a leading blockchain services company and their revenue grows, that should give more credibility and hence value to the XRP coin. If the coin trades around its previous high of $3.50 USD / XRP then the value of the coins on Ripple’s balance sheet would suggest a 100x+ on our invested capital. Also, the $300M of fiat cash on Ripple’s balance sheet should give the company at least a decade of working capital, thereby providing a long runway for the company to grow into its potential.

Given the relationship that Nebari has with a C-Suite executive at Ripple, we anticipate further stock purchases in 2019 as employees of Ripple seek to monetize their employee shares so as to diversify their personal portfolios.

While this deal holds the most obvious risk of all our deals in 2018, we see this to have the most upside as well. This investment defines “Hero or Zero.” 5/10 RAWIDE — NEBARI INVESTMENT DATE: 08/01/17 PAYOFF DATE: 12/31/18 IRR: 21.0% EQUITY MULTIPLE: 1.28X IN 1 YEAR AND 5 MONTHS

RGI’s partner on this loan secured by natural resource extraction and equipment is Nebari. Their preferred means of investing is 1st lien senior secured credit with 10-30% loan to value. Nebari often underwrites 15-20% IRRs on credit and over 20% IRRs including equity kickers.

Rawhide was attractive for the following reasons: (1) $6.25M 1st lien credit on assets believed to be worth $30-60M; (2) Backed by strong equity sponsors (Schlumberger and Marciano families); (3) 15.5% annual coupon paid quarterly; (4) 1.5% free equity in the business with a put option to the company; (5) In production from an existing heap leach generating EBITDA at time of deal close; (6) Upside potential with a fresh mine which was awaiting permitting which could generate $40M of cumulative EBITDA; (7) the liquidation value of just the borrower’s Caterpillar equipment exceeded the value of the loan; (8) Favorable jurisdiction in Nevada, USA.

WISH.COM Stock Purchase

RGI is an advisor to Alpha Venture Partners and through this great relationship with the sponsor, Steve Brotman, we were able to buy shares in Wish at a valuation of $4B. The company is on the verge of being EBITDA positive and their T-12 revenues at the time of our investment was $5B. Soon after we purchased our shares in a secondary off market transaction, Wellington led a formal $250M Series G at $134/share, representing a post-money valuation of $8.75B. Mark to market we are up 2.18x and we assume that Wellington and the other investors in the Series G are targeting for a 2x + on their investment. We anticipate there being a sale or IPO that monetizes our investment at a 5x or greater. While this can turn into a homerun investment, we believe our downside was breakeven at worse given that we were buying our secondary shares at a discount to market value.

We have seen that these secondary purchases of under $10M are great spaces to play because the institutional money managers are focusing on larger checks in formal rounds which enables us to buy into these great companies at a discount. This strategy worked well and last year we realized significant profits in our Spotify and Snapchat investments made in 2016. The way we look at this strategy is that if our Raymond James or JP Morgan Wealth Managers called us and asked if we wanted to buy into the IPOs of companies like Wish, Snapchat and Spotify, we would without hesitation buy IPO shares. Therefore, we are jumping all over this pre-IPO investment strategy. Buying pre-IPO can be rewarding if you invest an amount of money in which you are liquidity agnostic.

REKT GLOBAL $75MM Series B DECEMBER 30, 2018

RGI is an investor and Advisor in ReKTGlobal. ReKT is an esports venture that brings best practices from the sports, media and entertainment industries to the burgeoning esports market. ReKT owns and operates Team Rogue, a competitive esports team and owns 25% of Overpowered Network (OPN), a content/production company for the Middle East owned and operated by the Royal Family of Bahrain Al-Khalifa Family. ReKT is the agency of record for State Farm, the top U.S. sports advertiser. ReKT also negotiated multi-year deals with numerous top competitive platforms including, League of Legends, Rocket League, NBA2K, etc. In 2018, ReKT generated $4M in revenue. In 2019 ReKT anticipates $12M in revenue and $30M+ in 2020. Current market valuations for teams are between $150-300M+ (TEAM Liquid, Cloud 9, TSM, etc),

RGI viewed ReKT as an opportunity to establish a footprint in the rapidly growing esports industry. The increase in viewership from live-streaming, larger prize pools and improved infrastructure for pro leagues has made ReKT a prominent player in the space. Gaming has been prevalent in the US, Europe and particularly Asia for the past 4 decades so this is not a new space but rather the logical step in the monetization of an already robust industry.

6/10 QUIP Stock Purchase FEBRUARY 1, 2018

We purchased shares in the first to market, direct-to-consumer oral care company, Quip. We are co-investors alongside Sherpa Capital, one of the premier San Francisco-based venture capital firms that led early investments in the likes of Uber, , PillPack, and Slack among others. The company has demonstrated consistent revenue growth, and is expanding into new markets and product offerings, including dental , which provides additional business opportunities that are ripe for disruption by this innovative brand. We could be sitting on an early investment in a company that becomes a “Unicorn.”

CANTIUM / SOLE SOURCE CAPITAL Equity Investment

RGI invested in SSC Partners Cantium LP, a special purpose vehicle managed by the investment firm Sole Source Capital LLC (“SSC”), which in partnership with funds managed by York Capital Management (“York”), completed the acquisition of Chevron’s Bay Marchand and Main Pass shallow water Gulf of Mexico assets. The acquisition consisted of 300 active wells, 151 platforms, caissons and other offshore structures, along with the Port Fourchon onshore treatment plant from Chevron. SSC and York partnered with a senior management team highly skilled and experienced in offshore oil extraction and with these specific assets.

Prior to engaging in lengthy negotiations with SSC and York, Chevron reportedly made a strategic decision to sell these shallow water assets to focus on other much larger investments in deepwater, shale and foreign assets. Cantium’s assets are of high-quality and are well-understood geologically, described by some experts as Gulf of Mexico’s “crown jewels.” The financial profile was strong, with substantial cash generation from currently producing wells as well as a portfolio of high-return work-over opportunities. Additionally, the management team was experienced and well-suited to operate these assets.

Overall, early indications for this investment are extremely positive and the investment has been marked at a 4.2x MOIC within the first 18 months.

LATERAL CAPITAL RGI joined the Advisory Board in 2018

Lateral Capital invests in early and growth stage technology businesses in sub-Saharan Africa. They partner with companies that solve significant pain points across critical infrastructure including financial services, healthcare, and energy. They are a team of 6 professionals across Nairobi, Lagos, Johannesburg and New York with over 35 years of collective African investment experience across 15 countries.

RGI met Steven Grin and his partner through a mutual friend who created family wealth in the emerging markets and, in particular, SE Asia. This investor, a member of one of the most successful family offices in Europe, believes that what happened in Asia 20 years ago is now transpiring in Africa.

Jonny Gordon traveled to Africa in October with Steven to see the opportunities and meet a few of the Lateral backed founders. RGI saw a deep value opportunity to invest in the fastest growing region in the world: (1) 7 of the 10 fastest growing economies are in Africa, (2) 70% of the population is under 30 and (3) the middle class is already 330 million people and growing 10% per annum.

We decided to invest after that trip joining a group of unique family offices including Bill Gates’ having backed their vision and provided the funding to execute on a $100m fund in one of the most dynamic regions in the world.

7/10 LOUDPACK Equity Investment / Cannabis Allocation OCTOBER 1, 2018

We began investing in Loudpack in 2017. We were attracted to this cannabis company for a few reasons. 1) We wanted an allocation to the emerging cannabis space, 2) The leadership of this company appeared best in class as the C-Suite consisted of super successful real estate developers based in NYC as well as California based cannabis experts, and 3) The company was generating $50M of annual revenue and was EBITDA positive. We invested in a follow-on round in 2018 as well as a debt vehicle which paid off with over a 20% IRR within 6 months. We expect this company to go public in 2019 and we are excited to be a part of this industry leading company.

CLOSING SUMMARY:

In addition to the above deals in which we were key principals in 2018, we advised, led and invested in the following deals: Concerted Care Group’s (CCG) addiction centers in Baltimore servicing over 1,000 patients daily, CCG’s luxurious addiction center in Vail, Colorado, multifamily fix and flip deals in LA and elsewhere, over 3,000 garden style apartments nationally, multiple loan originations as well as payoffs, and covered land plays in core locations. There were two deals that we were under contract on and in which the price we were paying was simply too high for our risk tolerance and we were fortunate enough to flip both of those contracts.

The last quarter of 2018 was very volatile in global stock markets with the American indices ending down 5 to 10% for the year. The Chinese stock market was down over 20% for 2018. Coupled with Europe’s lack of growth and therefore close to 0 interest rates, the most important borrowing index, the US 10-year treasury, is still at historic lows despite the Fed raising short term rates to a range of 2.25% to 2.50%. The 10-year spread to the short-term rate is close to inverted meaning a lot of investors are either projecting a recession or they have enough excess cash that they will take 10 years of certainty rather than short term risk. We have seen 10+ years of up and to the right and no bull market can last forever. RGI will continue to seek the best deals available. We will continue to focus on value add and occupied apartment buildings in 93%+ occupied markets. By locking 10-year debt at under 5.0% and by using moderate to low leverage, we can mitigate risk and still provide strong cash on cash returns, pay down principal, and probably see asset appreciation over 10 year holds. In addition, we will continue to work with the best operating partners. We anticipate that half of our non-institutional transactions will be in real estate with a heavy focus on long duration apartment transactions. Around 25% of our transactions will be in debt positions while the other 25% will be in private companies such as the ones we invested in throughout 2018.

The distress we have seen recently in real estate has been limited to suburban office and retail assets as well as suburban single-family housing. We don’t have interest in investing in these areas as this distress is structural in nature. The distress in urban residential assets is currently specific to NYC condos and we are going to continue to capitalize on this with Churchill. When banks start writing down their retail loans in NYC, we will be ready to buy some of these great located assets.

In general, we were pretty pessimistic about most investment opportunities in 2018 and this was one of our slowest years in terms of number of deals executed. We would not be surprised if 2019 proves to be a tougher year than 2018 to buy cash flowing assets due to interest rates being low coupled with a tight job market and limited growth.

Thanks for taking the time to read our first annual newsletter and we welcome any and all feedback. Feel free to call Jonny Gordon at 917.755.5099, Konrad Zieba at 312.618.5803 and David Ruttenberg at 847.275.6570. Of particular note, please ask us why we left out any discussion of opportunity zones, marijuana sale leaseback situations, and other hot areas in today’s real estate investment climate.

RGI’S PE / VC INVESTMENTS TO DATE:

8/10 9/10 A SELECTION OF OUR CHICAGO REAL ESTATE:

2028 N Winchester 227 W North Ave 847 N Rockwell 55 E Washington 2 W Delaware 1314 N Wood 1940 Elston 678 Kingsbury 3559 N Milwaukee 1641 N Waveland 1450 W Barry 800 S Wells 3001 Spaulding 2641 N Fairfield 1364 Hamlin 108 W Germania 412 W Chicago 810 W Randolph 2240 Morse 245 W North 1166 N Milwaukee 2235 W Washington 1334 Cleaver 14000 Orleans 2010 W Chicago 2117 W Washington 1448 N Leavitt 2616 N Milwaukee 4132 W Addison 5432 S Woodlawn 1054 Ashland 312 W Chestnut 7255 N Bell 5713 Kenmore 2025 North Ave 36 N Paulina 1615 W Columbia 2853 Kedzie 7601 Sheridan 3000-3076 S Cicero Ave 3128 N Lincoln 102 W Washington 1455 Summerdale 800 W Washington 6318 N Albany 3530 N Ashland 4368 Milwaukee 770 N Halsted 2103 W Berwyn 1406 W Superior 2020 N Bissell 855 W Belmont 1626 W Fargo 2519 N Marshfield 934 North Branch 130 S Jefferson 2035 W Arthur 3722 Southport 5135 Drexel 641 W Lake 2102 N Damen 7328 Winchester Cicero Plaza 901 W Jackson 4022 N Sheridan 1130 Bryn Mawr 5417 Drexel 445 W Erie 1000 W Washington 1536 W North 1665 N Milwaukee 542 S Dearborn 5626 N Broadway 2034 W Arthur 111 South Peoria 708 N Wayman 3307 Belden 3829 N Kedzie 1739 N Milwaukee 640 W Randolph 118 S CLinton 1455 Taylor 7215 Oakley 907 W Armitage 1659 W Division 1210 W Diversey 1900 Clark 776 S Dearborn 122-128 S Green St 1452 Western 619 S LaSalle 416 W Ontario

A SELECTION OF OUR NATIONAL REAL ESTATE:

746 Prospect Pl, Brooklyn, NY 287 Clarkson Ave, Brooklyn, NY 345 E 33rd St, New York, NY 95 Gilligan Rd, East Greenbush, NY 436 & 442 East 13th St, New York, NY 5200 Plank Rd, Waterford, NY 737 Columbia Turnpike, East Greenbush, NY 1951 NE 167th St, North Miami Beach, FL 1503 Hillside Ave, Niskayuna, NY 16890 NE 21st Ave, North Miami Beach, FL 2925 Indian Creek Rd, Miami Beach, FL 5928 Firestone Rd, Jacksonville, FL 222 Blairmore Blvd E, Orange Park, FL 10700 MacArthur Blvd, Oakland, CA 1601 Dunn Ave, Jacksonville, FL 5400 East Avenue, West Palm Beach, FL 222 Clematis Street, West Palm Beach, FL 1412 Banbury Rd, Kalamazoo, MI 107 S Washington Ave, Saginaw, MI 424 Gatewood Rd, Garland, TX 500 Downs Blvd, Franklin, TN 825 3rd Ave S, Nasheville, TN 70 Lafayette Ave, Chelsea, MA 2109 Newton Road, Hampton, VA 3501 Terrace Dr, Suitland, MD 30 W Patrick St, Frederick, MD 3737 Branch Ave, Hillcrest Heights, MD Northwest Medical Plaza, Houston, TX 705 Pool Rd, Richmond, VA

A SELECTION OF ACTIVE FIRST MORTGAGE AND STRUCTURED LOANS:

1358 W Chestnut 2332 W Charleston 2145 W North 1704 N Damen 907 Hoyne 2652 W Logan 10/10 DAVID L. RUTTENBERG JONATHAN D. GORDON [email protected] [email protected] (847) 275-6570 (917) 755-5099

KONRAD ZIEBA ARYN SPAHR [email protected] [email protected] (312) 618-5803 (917) 514-0306

WWW.RUTTENBERGGORDON.COM

RGI OFFICES

NEW YORK CHICAGO 7 Mercer Street 55 E Jackson Blvd 2nd Floor Suite 500 New York, NY 10013 Chicago, IL 60604

MIAMI LOS ANGELES 1815 Purdy Avenue 1540 Flower Street Miami Beach, FL 33139 Glendale, CA 91201

* Nothing herein shall constitute an offer to buy or sell or the solicitation of an offer to buy or sell any securities or make any investments. © Hidden Valley Capital LLC doing business as Ruttenberg Gordon Investments. All Rights Reserved.