Retreat at Stone Mountain Disclaimer

The information contained in this overview and initial plan is considered confidential and is solely for the use of prospective investors to determine the level of interest in the Retreat at Stone Mountain apartment complex located in , GA. While the information contained in this overview, plan and model has been compiled from various sources, and we believe it to be reliable based on the data used but neither Ben Suttles, Feras Moussa, or Mark Kenney or its representatives make any representation or warranties as to the accuracy or completeness herein. All financial information and projections are provided for reference only and are based on assumptions relating to economy, market conditions, and other factors beyond our control. All prospective investors are encouraged to conduct their own independent due diligence investigation, review, financial projections, and consult with their legal, tax, and other professional advisors before making an investment decision. Meeting Agenda

• Executive Summary • Market Overview • Property Characteristics • Business Plan • Next Steps • Q&A Sponsor Team

Ben Suttles Feras Moussa Mark Kenney Managing Member Managing Member Managing Member

Ben is an entrepreneur having owned half a Feras is a serial entrepreneur with a tech Mark has a passion for real estate and has dozen companies with revenues at $10MM per background. Feras formerly worked as a been investing in real estate for over 20 year. He has helped syndicate 5 multifamily Program Manager at Microsoft, and is now years and currently owns over 4000 units. projects, totaling close to 800 doors and a focused on Multi-Family investing. Feras owns Mark purchased his first real estate property $40MM portfolio value. He recently sold his first and manages a rental portfolio of 4-plexs, when he was 23 years old. He has also syndication for over a 300% return in less than single-family homes, and multiple condos, and raised millions of dollars to purchase two and half years, and has raised over $10MM has closed over 500 units and $25MM in properties. in his career for various real estate projects. Multifamily acquisitions. Sponsor Team

Josh Benporat David Gerber Juan Vargas Co-Sponsor Co-Sponsor Co-Sponsor

Josh grew up in Dallas, however after making the With more than 25 years experience in financial services, Juan has been actively engaged in all aspects of move to Houston in 2012 he proudly calls this city his David was constantly surprised how many clients and real estate sales, investment, management, home. Josh has over a decade of experience in sales colleagues limited their portfolios to stocks, bonds, and financing and construction for more than ten years. and is a licensed attorney in the state of Texas. After cash. Too many failed to diversify sufficiently into direct He is a licensed commercial agent and has discovering his passion for commercial real estate real estate. For good reason! Even passive investments experience with residential as well as multi- two years ago he shifted his focus to multifamily require a lot of upfront due diligence, even if you can residential, including owning 4 single family homes investing and the rest is history. access deals. David founded Cove Investments to help and owning and operating a 32 unit multifamily individual investors access direct, passive real estate property in the Houston MSA. He is a KP in 90 opportunities, with taxable funds or in their retirement multifamily units in Atlanta and has also invested accounts! passively in 321 multifamily units. Juan was raised with strong family values and is known for his unique ability to uncover apartment investment deals with value add potential. Executive Summary

Average Annualized Returns 6 Year Return Capex Improvements 16%+ ~100% $950k

Location Management High-Demand North ATL location which allows Out of State institutional Current rents are low residents to enjoy easy access to owners who had “hands off” $0.70s/ft. Underwritten management style. Provence at $0.82/ft. While I-285 (204,000 vehicles per day), managed deal across the Market average is high which facilitates quick commutes street for years $0.80s/ft and into the to major metro employers. 90’s. Why Atlanta and Retreat at Stone Mountain

• Built in 1983, Retreat at Stone Mountain apartments feature quality construction elements including pitched roofs, covered exterior breezeways, washer/dryer connections, and low- maintenance brick and vinyl exteriors.

• Nearby competitors of similar age receive average rents that are $175 to $300 higher than Retreat at Stone Mountain’s average market rent.

• Atlanta is expected to add 43,200 jobs in the next twelve months. MPF’s forecast calls for increases in organic rent growth of +3.3% over the next year

• Home to nearly 5.9 million residents, Metro Atlanta is the largest metro in and the ninth-largest metro area in the United States.

• Greater Atlanta’s population is forecast to grow 9.6% over the next five year’s surpassing 6.4 million residents Market Overview

The Atlanta Metropolitan Statistical Area’s total population now exceeds 5.9 million people and has grown 79% since 1990, making it the nation’s ninth-largest MSA and one of its fastest growing.

• Atlanta is expected to add 43,200 jobs in the next twelve months. • Top 5 projected job growth metro through 2020. • The massive 29-county region is also home to 15 Fortune 500 companies, 66 institutions of higher learning, and the busiest airport in the world in terms of annual passengers.

Apartment Market Overview

SUBMARKET OVERVIEW

• Retreat is located within one of the top performing submarkets in the Atlanta MSA.

• The Stone Mountain submarket saw a 5.5% annual rent growth in Q2 2018. This rent growth is a result of no new supply in the area and the submarket’s proximity to Atlanta.

• Supply-demand imbalance fuels submarket fundamentals, bolstering property Year 1 projections are $916/unit performance trends and indicating strong future organic growth

Nearby Entertainment

Stone Mountain Park - Its centerpiece is the East Lake Golf Club - a private golf club that is the world’s largest exposed piece of and is oldest golf courses in the city of Atlanta. the number one tourist attraction in Georgia. Visitors can travel to the summit and explore North Dekalb Mall - is a 635,000 SF center of the park’s 3,200 acres of lakes and woodlands shopping, dining, and entertainment destinations. which features, boat rides, adventure and climbing areas, plantation, Civil War museum, laser show, and carillon. Wade-Walker- is DeKalb’s largest park and recreational facility. The park features baseball, Northlake Mall - 1.0 million SF is anchored by softball, soccer, tennis, as well as street hockey. The Macy’s, Sears, and JCPenney, and also has more park also provides a swimming pool, playgrounds, than 100 other retailers. picnic areas, pavilions, a lake, and walking trails.

The Fernbank Museum of Natural History- 8 million dollar exhibit which includes dinosaur skeletons and an IMAX theater.

Nearby Entertainment

Stone Mountain Park East Lake Golf Club Northlake Mall Nearby Employers

Retreat at Stone Mountain

MIDTOWN

Emory University and CDC HQ DECATUR Marta Rail

GSU Perimeter College

Memorial Bend

H a m b r i c k R o a d

Retreat at Stone Mountain Property Summary

400 Ashley Place, Stone Mountain, GA Address 30083 Year Built 1983 Units 212 Total SF 238,140 Avg Unit Size 1,123 Land Size (acres): 19.7 Physical Occupancy 95%

Highlights

• Negotiated off market. Purchased at less than $67k/door. • Property is well kept, but not well managed. There is both a management and value-add play. • 1983-built asset features desirable construction features including brick and pitched roofs. • The asset features 100% two-and three-bedroom spacious roommate-style floorplans (averaging 1,123 SF). • Market-supported organic rent increase based on rent comp set. • Had 6 fire units recently, these were rehabbed nicely and were quickly leased up for a $100 premium • Property next door is a 100% replica of property, same builder. Next door property has rents in the $0.90s/ft. • 100%+ total return in 6 years, on conservative underwriting, with 8 pref and 75/25 split.

Floor Plans

T WO BEDROOM / ONE BATH GARDEN T WO BEDROOM / T WO BATH GARDEN T WO BEDROOM / T WO BATH GARDEN 1,029 Square Feet 1,096 Square Feet 1,058 Square Feet Floor Plans

THREE BEDROOM / TWO BATH GARDEN THREE BEDROOM / TWO BATH GARDEN 1,278 Square Feet 1,310 Square Feet Property Characteristics- Interiors

Upgraded unit Property Characteristics - Interiors

Classic Unit Property Characteristics- Exteriors Property Characteristics - Exteriors Property Amenities

• Swimming Pool • Gated Access • Office • Two Playgrounds • Picnic Areas • Sport Court • Washer/Dryer Connections in all units

Property Amenities The Opportunity

# Units 212 Loan Type Purchase Price $14,200,000 Traditional Agency Debt Price/Unit $66,981 (Fannie Mae) Earnest Money $200,000

1st Mortgage $9,800,000

Mortgage Terms 10 year Hunt Mortgage – sponsors

Interest Rate ~4.40% have other properties with the

Interest Only 4 Years same lender

Rehab Budget ~$950,000 30 year amortization Acquisition Fee 2%

Reserves/Additional $100,000 Rehab

Total Needed to Close $6,025,000 Investment Projections

9-10%+ cash flow throughout the hold

100%+ total return in 6 years

~16%+ average annualized return Rent Comps

Two Bedrooms Three Bedrooms $1,400 $1,200 $1,275 $1,055 $1,065 $1,163 $990 $1,000 $1,200 $1,100 $1,000 $917 $1,070 $795 $1,000 $800 $870 $800 $600 $600 $400 $400 $200 $200 $0 The Haverly Polo Club Wildwood at The Life at The Pointe Sterling $0 at Stone (1,094 sf) Stone Clifton Glen (1,055 sf) Chase Polo Club Wildwood at The Life at The Pointe Sterling Chase Mountain Mountain (1,200 sf) (1,096 sf) (1,300 sf) Stone Mountain Clifton Glen (1,255 sf) (1,310 sf) (1308 sf) (1,060 sf) (1,274 sf) (1,500 sf)

~$210 delta on average ~$280 delta on average Sales Comparables

Sale Year Price per Property Name Date Units Built Price Unit Address City

Subj. Retreat at Stone - 212 1983 $14,200,000 $66,981 400 Ashley Place Stone Mountain, GA Mountain 1 Stanford Oaks Aug-18 202 1968 $19,000,000 $94,257 2035 Idlewood Road Tucker, GA

2 Rainbow Forest Aug-18 156 1972 $11,500,000 $73,718 3100 Rainbow Forest Circle Decatur, GA

3 Clifton Glen Jul-18 556 1972 $40,866,000 $73,500 500 Hambrick Road Stone Mountain, GA

4 Summit Grove Jun-18 64 1966 $4,800,000 $75,391 2340 Lawrenceville Highway Decatur, GA

5 Villas of Embry Hills Jun-18 124 1964 $12,000,000 $67,643 3317 Chamblee Tucker Road Atlanta, GA

6 Heritage Reserve Feb-18 210 1989 $14,200,000 $67,643 10 Creste Drive Decatur, GA

7 Azalea Ridge Jan-18 281 1969 $19,100,000 $68,000 3214 Valley Bluff Drive Doraville, GA

8 Cambridge Heights Dec-17 132 1989 $8,950,000 $67,803 6136 Hillandale Drive Lithonia, GA

9 Sonoma Ridge Nov-17 440 1986 $39,300,000 $89,318 4659 Dawson Boulevard Atlanta, GA

10 The Arbors Sep-17 140 1987 $12,300,000 $87,500 100 Arbor Circle Tucker, GA

11 Grove Mountain Park Apr-17 268 1989 $21,600,000 $80,637 1900 Glenn Club Drive Stone Mountain, GA

12 Lavista Crossing Jan-17 240 1969 $22,700,000 $94,688 3797 Lavista Road Tucker, GA

Total/Average 2,813 $226,316,000 $80,454 Business Plan

Management Professional Property Management – currently manage 8,000+ units in SE, with the majority in the ATL MSA; managed The Life at Clifton Glen, across the street, for several years until July 2018 Capex $950,000 in improvements to interiors and exteriors, and addition of various amenities, including paint, roofs, update office, and upgrade 100-150 units.

Property Improvements Improve signage of the property to give a modern feel, add new amenities such as a dog park and functional office/clubhouse, new pool furniture and establish clean, quality housing. Increase NOI, Reduce Expenses Update strategic units, move rents to market and reduce expenses Professional Management-

• Current owners are out of state & institutional and take a very “hands off” style of ownership and management

• Provence Real Estate will manage the property for us upon takeover

• Provence currently manages 8000+ units total, & manage 900+ units for us in Atlanta

• Toured the property, conducted lease audits, reviewed budgets and projections Estimated Rehab Budget

Rehab Rehab

Roofs $150,000 Office/Clubhouse/Pool $25,000

Exterior Improvements $150,000 Solar Screens $40,000

Dog Park/Pergola/BBQ Pits $25,000 Other $40,000

Gate Repairs $15,000

Landscaping/Signage/Fencing $90,000

Interior upgrades $415,000

Total: ~$950,000 Increase NOI

• Bring rents to market – High renter demand & limited supply

• Professional Property Management with years of experience in this pocket

• Update units to better standard in order to push rents to a premium

• Add amenities to attract premium rents and improve property look & feel

• Tighter management control of the asset helping streamline expenses Proforma Table Assumptions Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Rent Growth 3% 3% 2% 2% 2% Expenses Growth 3% 3% 2% 2% 2% Economic Vacancy 18% 11% 11% 11% 11% 11%

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Gross Rents $2,342,280 $2,412,548 $2,484,925 $2,534,623 $2,585,316 $2,637,022 Economic $421,610 $265,380 $273,341 $278,808 $284,385 $290,072 Vacancy Other Income $231,000 $237,930 $245,068 $249,969 $254,969 $260,068 Net Income $2,151,670 $2,385,098 $2,456,651 $2,505,784 $2,555,900 $2,607,018 Operating $1,088,000 $1,120,640 $1,154,259 $1,177,344 $1,200,891 $1,224,909 Expenses Capex $53,000 $53,000 $53,000 $53,000 $53,000 $53,000 Reserves Net Operating $1,010,670 $1,211,458 $1,249,392 $1,275,440 $1,302,008 $1,329,109 Income Projected Investor Return All numbers below are net returns to investors – Net of Debt Service, 1.5% Asset Management Fee and 20% Sponsor Compensation Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

Before Tax Cash Flow $531,628 $678,401 $704,818 $722,957 $589,833 $608,706 Cash on Cash Return 8.77% 11.21% 11.67% 11.98% 9.80% 10.13% 7% Exit Cap. Total Return 32.53% 50.74% 67.21% 84.15% 101.61% ~15% total IRR Average Annualized Return 8.77% 16.27% 16.91% 16.80% 16.83% 16.93%

Average Annualized Return 9.98% 10.53% 16.59% 16.60% 16.70% Sample Investment Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 ($100,000) Cash-on-Cash Return $8,772 $11,213 $11,669 $11,983 $9,800 $10,126

Cumulative Cash-on-Cash $8,772 $19,985 $31,654 $43,637 $53,437 $63,563

Equity Gain on Sale - - - - - $38,046

Return of Capital - - - - - $100,000

Total Return $8,772 $19,985 $31,654 $43,637 $53,437 $201,609 Post Acquisition Expectations

Monthly Reports Investors will receive a monthly report with highlights and financials

Quarterly Distributions Investors should expect distributions quarterly, starting at 6 months after acquisition

Communication Sponsorship team will keep communication channels open and communicate the good and bad Next Steps

1. Review and complete Investment Packet, to be sent out February 4th 2. Sponsors review and accept investment packet 3. Wire investment to banking instructions prior to February 20th The investment packet contains the Offering documents (PPM, Subscription Agreement, etc.). Open to both sophisticated and accredited investors

Investments will be accepted on a first come first serve basis on the completion and delivery of the offering documents, as well as wiring of funds.

Minimum Investment - $75,000 Will accept IRA Funds Q&A

Have questions? Feel free to ask.