144 Units Market Pricing |

| EXCLUSIVE MULTIFAMILY OFFERING a Berkshire Hathaway and Jefferies Financial Group company

144 Units | Market Pricing 361 Covington Drive Detroit, MI 48203

For Real-Time Property Information go to: PalmerPark4.BerkadiaREA.com

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Exceptional Growth Market

Premiere Location

Detroit Investment Market

Attractive Financing

For Real-Time Property Information visit: PalmerPark4.BerkadiaREA.com

INVESTMENT ADVISORS

KEVIN P. DILLON JASON KRUG CHARLEY HENNEGHAN CARLY DIETZ RICK BRACE Senior Managing Director Managing Director Associate Director Director Senior Director 248.341.3309 248.341.3344 248.341.3303 248.341.3327 248.341.3319 [email protected] [email protected] [email protected] [email protected] [email protected]

FINANCING

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PORTFOLIO OVERVIEW / THE OPPORTUNITY Financial Analysis 21 Financial Analysis 37 The Opportunity 5 Property Tax Analysis 24 Property Tax Analysis 40 PARKVIEW COURT EAST PARKWAY COMPARABLE PROPERTIES Property Description 9 Property Summary 25 Comparable Rental Properties & Map 41 Boundary Aerial 11 Boundary Aerial 27 Comparable Sales Properties 48 Floor Plan 12 Floor Plans 28 PALMER PARK DEVELOPMENT AND CONSTRUCTION Financial Analysis 13 Financial Analysis 29 Palmer Park Development and Construction 52 Property Tax Analysis 16 Property Tax Analysis 32 APPENDIX PARKVIEW COURT WEST WHITMORE PLAZA Economic and Demographic Overview 55 Property Summary 17 Property Summary 33 Detroit Construction and Proposed Multifamily Projects 71 Boundary Aerial 19 Boundary Aerial 35 Floor Plan 20 Floor Plan 36

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4 PALMER PARK PORTFOLIO PARK PALMER

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In the heart of Detroit’s Palmer Park neighborhood is an opportunity to acquire four prime apartment buildings consisting of 144 units, The Palmer Park Four Portfolio. These properties are poised for renovation offering strong value creation through revenue growth. The Portfolio represents an extraordinary cash flow investment opportunity located in the well-known Detroit neighborhood of Palmer Park. Each of these properties are poised for a new investor to provide a different style or quality of services and upgrades to increase revenue over the annual organic market rent growth. The Palmer Park Four also provides substantial economies of scale with 144 total units, which is a significant portion of this Submarket.

Exceptional Growth Market: Primary economic factors regarding the potential offered at the Palmer Park Four are the exceptional rising single family residential property values in the Sherwood Forest, Palmer Woods, University District, and Palmer Park neighborhoods.

PORTFOLIO OVERVIEW / THE OPPORTUNITY THE / OVERVIEW PORTFOLIO The improving property values illustrate the growth and stability of this Detroit Submarket. These neighborhoods are outpacing Metro area appreciation rates. Detroit’s overall growth also continues due to the outstanding improvements in Downtown and Suburban markets.

Premiere Location: Situated just West of Woodward Avenue and a short drive to 8 Mile Rd, residents can access I-75 and all major freeways, including the I-94/M-10 interchange, thus creating ample access to the metro area’s business environments. Residents can enjoy short walks to the popular and beautiful Palmer Park. Additionally, the Portfolio offers strong location with easy access to major employers and shopping destinations including downtown Detroit, Dearborn, Ferndale, Madison Heights, and Royal Oak. Entertainment venues including Little Caesars’ Arena (District Detroit), Comerica Park and Ford Field are just a short drive down Woodward.

Detroit Investment Market: The Detroit region has experienced significant economic growth and stability as the Global Automotive Capital of the world and as a leader in the High Technology industry. The Downtown Detroit employment market is led by Quicken Loans, Compuware, Detroit Medical Center, Henry Ford Medical Center, GM, Wayne State, Casinos (3), and the Lions, Tigers, and Red Wings. The industry diversification and current development pipeline project a strong employment base in the region. Attractive Financing: The properties are available free and clear of any financing at closing. Investors can take advantage of the exceptionally competitive capital markets with maximum leverage, low interest rates thus providing exceptional return on investment.

6 PALMER PARK PORTFOLIO PARK PALMER

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Consolidated Palmer Park Portfolio Market Monthly Annual Units Type Unit SF Total SF Rent Mkt Rent Mkt Rent Rent/SF 1 Studio 400 400 $450 $450 $5,400 $1.13 26 1 Bed / 1 Bath 654 17,004 $541 $14,072 $168,867 $0.83 31 1 Bed / 1 Bath 654 20,274 $528 $16,368 $196,416 $0.81 48 1 Bed / 1 Bath 654 31,392 $537 $25,776 $309,312 $0.82 38 2 Bed / 1 Bath 807 30,666 $635 $24,111 $289,332 $0.79 144 693 99,736 $561 $80,777 $969,327 $0.81

Berkadia Income ProForma June 2018 T3 June 2018 T12 2017 Annualized

Scheduled Market Rent $969,327 $811,928 $774,406 $765,929 Less: Loss-to-Lease 2.16% ($20,931) $0 $0 $0 Less: Vacancy 5.00% ($48,463) $0 $0 $0 Less: Non-Rev/Bad Debt/Adjust 2.14% ($20,731) $0 $0 $0 Net Rental Income $879,202 $811,928 $774,406 $765,929

Plus: Fee Income $16,803 $16,313 $16,256 $15,982 Plus: RUBS Income $27,001 $26,215 $16,177 $14,082 Plus: Other Income $927 $900 $1,268 $1,520 Total Operating Income (EGI) $923,933 $855,356 $808,107 $797,513

Expenses Per Unit June 2018 T12 June 2018 T12 2017 Administrative $105 $15,186 $10,846 $10,846 $14,892 Advertising & Promotion $81 $11,724 $11,438 $11,438 $11,299 Payroll $967 $139,300 $214,573 $214,573 $241,114 Repairs & Maintenance/Turnover $650 $93,623 $110,625 $110,625 $66,044 Management Fee 4.41% $297 $42,732 $48,000 $48,000 $48,000 Utilities $1,410 $203,048 $198,096 $198,096 $188,925 Contracted Services $175 $25,200 $5,519 $5,519 $7,482 Real Estate Taxes $439 $63,218 $43,526 $43,526 $116,748 Insurance $219 $31,550 $24,485 $24,485 $50,456 Replacement Reserve $300 $43,200 $43,200 $43,200 $43,200 Total Expenses $668,781 $710,308 $710,308 $788,161

Per Unit: $4,644 $4,933 $4,933 $5,473 PALMER PARK PORTFOLIO Per SF: $6.71 $7.12 $7.12 $7.90

Net Operating Income $255,152 $145,048 $97,799 $9,352

IMPORTANT INFORMATION & DISCLAIMER: The information contained herein is assumed to be correct and market-supported. Output produced from this model should not be considered an appraisal. Projections are forecasts and are not to be considered fact. The information contained in this file is privileged and confidential; it is intended only for use by Berkadia and their clients. This file may not be reproduced physically or in electronic format without the expressed written consent of Berkadia. CAUTION: Security codes have been included into this file and unauthorized use may render this file useless. Berkadia Employees, affiliates, and contractors are instructed to hard-code this model for reproduction and distribution. Not responsible for errors and omissions. COPYRIGHT 2018. All Rights Reserved. DRAFT REPORT: Privileged & Confidential, For Discussion Purposes Only

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8 PALMER PARK PORTFOLIO PARK PALMER

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Address: 361 Covington Road Pakie Cout East is a -uit, id-ise apatet ouity loated i the Detoit Suu Detroit, MI 48203 of Highlad Pak, Mihiga. Built i 9, this popety featues oe, fou-stoy uildig osisig of oe-edoo / oe-ath uits, easuig suae feet eah. Uit County: Wayne Aeiies at this ouity ilude efigeato, age, ad hadood loos. The outside of Units: 24 the uildig featues aiued shus ad gass la. The popety ofes the folloig ouity aeiies: PARKVIEW COURT EAST COURT PARKVIEW Year Built: 1937 Parcel: 02002614 • Olie aiteae euest syste, olie et payet • -hou aiteae, o-site laudy, pet-fiedly Total SF: 15,696 • O-site staf, high-speed Iteet aess Average SF: 654 • Sufae-leel pakig, aied loo plas Number of Buildings: 1

Stories 4

Type of Buildings: Mid-Rise Roofs: Flat Exterior: Masonry Metering: Resident Pays Electricity Property pays Water, Sewer, Trash, Gas

Entryways: Indoor Corridor

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PalmerPark4.BerkadiaREA.com 11 1

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ONE BEDROOM / ONE BATH 654 SQUARE FEET

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Monthly Annual Units Type Unit SF Total SF Market Rent Mkt Rent Mkt Rent Rent/SF 24 1 Bed / 1 Bath 654 15,696 $537 $12,883 $154,601 $0.82 24 654 15,696 $537 $12,883 $154,601 $0.82

Berkadia June 2018 June 2018 Income ProForma T-3 T-12 2017

Scheduled Market Rent $154,601 $114,928 $97,850 $86,367 Less: Loss-to-Lease 2.00% ($3,092) $0 $0 $0 Less: Vacancy 5.00% ($7,730) $0 $0 $0 Less: Non-Rev/Bad Debt/Adjust 3.50% ($5,415) $0 $0 $0 Net Rental Income $138,364 $114,928 $97,850 $86,367

Plus: Fee Income $1,265 $1,430 $1,228 $1,483 Plus: RUBS Income $2,715 $5,280 $2,635 $1,445 Plus: Other Income $258 $0 $250 $408 Total Operating Income (EGI) $142,601 $121,638 $101,964 $89,703

Berkadia June 2018 June 2018 Expenses Per Unit ProForma T-12 T-12 2017 Administrative $105 $2,522 $2,460 $2,460 $2,603 Advertising & Promotion $56 $1,352 $1,319 $1,319 $1,589 Payroll $1,000 $24,000 $35,225 $35,225 $39,171 Repairs & Maintenance/Turnover $650 $15,600 $23,339 $23,339 $11,448 Management Fee 5.00% $297 $7,130 $5,835 $5,835 $5,796 Utilities $1,366 $32,792 $31,992 $31,992 $37,164 Contracted Services $175 $4,200 $694 $694 $807 Real Estate Taxes $323 $7,758 $4,344 $4,344 $13,099 Insurance $275 $6,600 $3,809 $3,809 $10,159 Replacement Reserve $300 $7,200 $7,200 $7,200 $7,200 Total Expenses $109,154 $116,217 $116,217 $129,036 PALMER PARK PORTFOLIO Per Unit: $4,548 $4,842 $4,842 $5,376 Per SF: $6.95 $7.40 $7.40 $8.22

Net Operating Income $33,447 $5,421 ($14,253) ($39,333)

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INCOME ASSUMPTIONS EXPENSE ASSUMPTIONS

▪ Scheduled Market Rent: The market rents used in the Pro Forma ▪ Administrative: Administrative expenses include Telephone, Internet, analysis for Parkview Court East are per the 6/30/2018 rent roll. Answering Service, Legal Expense, Bank Charges, Office Supplies, Scheduled Market Rents total $154,601 annually or $0.82 per Uniforms, Food & Drink, Employee Party, Postage,

PARKVIEW COURT EAST COURT PARKVIEW square foot. Computer/Buildium, Backgrnd & Credit, Gasoline/Mileage, Bank Fees. Administrative Expenses were increased by 2.5% over the ▪ Loss to Lease: The Loss to Lease represents the difference between Trailing 12-Month Financials and in each year in the 10-Year the contract rents and market rents. The current Loss to Lease is Projection. projected at 2.0% in the Pro Forma Valuation, and decreases to 1.0% in years 2-10 in the 10-year projection. ▪ Advertising & Promotion: The Advertising and Promotion expenses include Media Advertising & Internet Adv.. Advertising and Promotion ▪ Vacancy / Occupancy: As of 6/30/2018, the physical occupancy expenses were increased by 2.5% over the Trailing 12-Month was 87.50%. Based on recent trends and economic forecasts, the Financials and in each year in the 10-year projection. market occupancy should remain at or above 95.0%. Based on industry standards, the occupancy is underwritten at 95.0%. ▪ Payroll: Payroll expenses includes Mgmt & Admin, Leasing & Mktg, Maintenence Staff, Janitorial, Commissions, Bonus Staff, Bonus ▪ Concessions: There were no Concessions included in the Pro Forma Mgmt, Employee Educ. Payroll Expenses were decreased by ~30% Valuation. to $1,000/unit from the Trailing 12-Month Financials in Year 1 of the Pro Forma Valuation, and then increased by 2.5% in each year in ▪ Non-Rev Units / Bad Debt / Adjustments: This item reflects the 10-Year Projection. adjustments made for non-revenue generating units and bad debts that have not been collected. We projected a 3.5% Non- ▪ Repairs & Maintenance / Turnkey: This category includes General Revenue/Bad Debt adjustment for Y1 in the Pro Forma Valuation. Maint. - Other, Electrical Parts, Plumbing Supplies, Carpentry Supplies, Appliance Supplies, Misc Constr Sup, Plumbing Contract, ▪ Fee Income: The Fee Income category includes Application Fee Roof Contract, Appliance Contract, Hvac Contract, Other Mtce Income, Legal Fines & Fees, Late Fee Income, Nsf Fee Income & Expense, Paint Supplies Occupied/Common, Paint Supplies, Convenience Fee. Fee Income in the Pro Forma Valuation was Cleaning Supplies, Carpet Cleaning And Supplies, Plumbing increased by 3.0% from the Trailing 12-Month Financials. Supplies, Lock & Key Supplies, Misc Const. Supp, Contract Painting. Repairs and Maintenance Expenses were decreased by 34.5% from ▪ RUBS Income: The RUBS Income category includes Utility the Trailing 12-Month financials in year 1 of the Pro Forma Reimbursement Income. RUBS Income in the Pro Forma Valuation Valuation, and then increased by 2.5% in each year in the 10-year was increased by 3.0% from the Trailing 12-Month Financials. projection.

▪ Other Income: The Other Income category includes Forfeited ▪ Management Fee: We assume a 5.0% management fee, consistent Security Deposits, Legal Notice & Termination. Other Income in the with market standards and similar properties of this size and bracket Pro Forma Valuation was increased by 3.0% from the Trailing 12- of revenue. Month Financials. ▪ Utilities: This line item includes Electric House, Electric Unit, Water, ▪ Total Income: Total Operating Income Y1 is projected at $142,601. Sewer, Gas House, Gas Unit. Utility Expenses were increased by 2.5% over the Trailing 12-Month Financials and in each year in the 10-Year Projection.

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▪ Contracted Services: This line item includes Landscaping - Lawn, Landscaping - Snow, Exterminating, Grounds Supplies. Contracted Services were increased by 613% to $175/unit over the Trailing 12- Month Financials and then were increased by 2.5% in each year in the 10-Year Projection.

▪ Real Estate Taxes: Parkview Court East is located in Wayne County and is subject to its taxing authority. We strongly recommend consulting a tax professional regarding this line item.

Parkview Court East taxes were adjusted to reflect the 2018 State Equalized Value (SEV). Taxes were also increased 2.0% annually in the 10-Year Projection. A detailed Property Tax Analysis is included in the following pages.

▪ Insurance: Insurance Expenses were decreased by 14% from the Trailing 12-Month Financials and then increased by 2.5% annually in each year in the 10-Year Projection.

▪ Replacement Reserves: A Replacement Reserve of $300 per unit is factored into the Pro Forma and 10-year projection. This is consistent with industry standards and lender requirements today.

▪ Net Operating Income (NOI): Projected FY1 Net Operating Income after replacement reserves is $33,447.

FINANCING

Parkview Court East is being offered as All Cash.

PALMER PARK PORTFOLIO

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TAX ANALYSIS Address: 361 Covington Rd PARKVIEW COURT EAST COURT PARKVIEW City, State: Detroit, MI Zip: 48203 Units: 24 Parcel #: 02002614 2016 2017 2018

SEV $81,600 $82,800 $88,600 Taxable Value $81,600 $82,334 $84,063

Millage Rates Summer 76.697 77.475 76.231 Winter 11.393 9.393 9.393 Total 88.091 86.868 85.624

Admin Fees $71.87 $71.51 $71.51 Interest Fees $581.12 $0.00 $0.00 Inspection Fee $100.00 $100.00 $100.00 Total Fees $752.99 $171.51 $171.51

Total Taxes based on SEV (+ Fees) $7,941 $7,364 $7,758 Total Taxes based on Taxable Value (+Fees) $7,941 $7,324 $7,369 $/Unit (SEV) $331 $307 $323 $/Unit (Taxable) $331 $305 $307

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This text is here to lock in the rotation orientation. It has to be longer than the tab texts in order to register so I'm padding this not as much as possible PROPERTY SUMMARY PROPERTY DESCRIPTION

Address: 361 Covington Road Pakie Cout West is a -uit, id-ise apatet ouity loated i the Detoit Detroit, MI 48203 Suu of Highlad Pak, Mihiga. Built i 9, this popety featues oe, fou-stoy uildig osisig of oe-edoo / oe-ath uits, easuig suae feet eah. Uit County: Wayne Aeiies at this ouity ilude efigeato, age, ad hadood loos. The outside of Units: 24 the uildig featues aiued shus ad gass la. The popety ofes the folloig ouity aeiies:

PARKVIEW COURT WEST COURT PARKVIEW Year Built: 1937 Parcel: 02002615 • Olie aiteae euest syste, olie et payet • -hou aiteae, o-site laudy, pet-fiedly Total SF: 15,696 • O-site staf, high-speed Iteet aess Average SF: 654 • Sufae-leel pakig, aied loo plas Number of Buildings: 1

Stories 4

Type of Buildings: Mid-Rise Roofs: Flat Exterior: Masonry Metering: Resident Pays Electricity Property pays Water, Sewer, Trash, Gas

Entryways: Indoor Corridor

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PalmerPark4.BerkadiaREA.com 19 1

ONE BEDROOM / ONE BATHROOM 654 SQUARE FEET

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Monthly Annual Units Type Unit SF Total SF Market Rent Mkt Rent Mkt Rent Rent/SF 24 1 Bed / 1 Bath 654 15,696 $537 $12,883 $154,601 $0.82 24 654 15,696 $537 $12,883 $154,601 $0.82

Berkadia June 2018 June 2018 Income ProForma T3 T12 2017

Scheduled Market Rent $154,601 $116,983 $117,409 $123,132 Less: Loss-to-Lease 3.00% ($4,638) $0 $0 $0 Less: Vacancy 5.00% ($7,730) $0 $0 $0 Less: Non-Rev/Bad Debt/Adjust 3.50% ($5,415) $0 $0 $0 Net Rental Income $136,818 $116,983 $117,409 $123,132

Plus: Fee Income $1,833 $160 $1,779 $1,900 Plus: RUBS Income $7,448 $12,855 $7,231 $5,502 Plus: Other Income $258 $0 $250 $250 Total Operating Income (EGI) $146,356 $129,998 $126,669 $130,784

June 2018 June 2018 Expenses Per Unit T12 T12 2017 Administrative $100 $2,400 $937 $937 $1,629 Advertising & Promotion $56 $1,352 $1,319 $1,319 $1,589 Payroll $1,000 $24,000 $36,339 $36,339 $40,375 Repairs & Maintenance/Turnover $650 $15,600 $18,003 $18,003 $10,491 Management Fee 5.00% $305 $7,318 $7,491 $7,491 $7,482 Utilities $891 $21,392 $20,870 $20,870 $26,081 Contracted Services $175 $4,200 $788 $788 $1,037 Real Estate Taxes $406 $9,753 $3,744 $3,744 $15,207 Insurance $267 $6,415 $3,809 $3,809 $6,259 Replacement Reserve $300 $7,200 $7,200 $7,200 $7,200 Total Expenses $99,630 $100,501 $100,501 $117,349

Per Unit: $4,151 $4,188 $4,188 $4,890 Per SF: $6.35 $6.40 $6.40 $7.48 PALMER PARK PORTFOLIO

Net Operating Income $46,726 $29,497 $26,168 $13,435

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INCOME ASSUMPTIONS EXPENSE ASSUMPTIONS

▪ Scheduled Market Rent: The market rents used in the Pro Forma ▪ Administrative: Administrative expenses include Telephone, Internet, analysis for Parkview Court West are per the 6/30/2018 rent roll. Answering Service, Bank Charges, Office Supplies, Food & Drink, Scheduled Market Rents total $154,601 annually or $0.82 per Employee Party, Uniforms, Postage, Computer/Buildium, Backgrnd &

PARKVIEW COURT WEST COURT PARKVIEW square foot. Credit, Gasoline/Mileage. Administrative Expenses were increased 144% over the Trailing 12-Month Financials to $100/unit. ▪ Loss to Lease: The Loss to Lease represents the difference between Administrative Expenses were then increased 2.5% in each year of the contract rents and market rents. The current Loss to Lease is the 10-Year Projection. projected at 3.0% in the Pro Forma Valuation, and decreases to 1.0% in years 2-10 in the 10-year projection. ▪ Advertising & Promotion: The Advertising and Promotion expenses include Media Advertising, Internet Adv.. Advertising and Promotion ▪ Vacancy / Occupancy: As of 6/30/2018, the physical occupancy expenses were increased by 2.5% over the Trailing 12-Month was 91.67%. Based on recent trends and economic forecasts, the Financials and in each year in the 10-year projection. market occupancy should remain at or above 95.0%. Based on industry standards, the occupancy is underwritten at 95.0%. ▪ Payroll: Payroll expenses includes Mgmt & Admin, Leasing & Mktg, Maintenence Staff, Janitorial, Commissions, Bonus Staff, Bonus ▪ Concessions: We assumed Concessions of Concessions Percentage Mgmt, Employee Educ. Payroll Expenses were decreased by ~33% Y1 where it remains for the rest of this analysis. The submarket has to $1,000/unit from the Trailing 12-Month Financials in Year 1 of seen Calculation Method among properties of this age/vintage. the Pro Forma Valuation, and then increased by 2.5% in each year in the 10-Year Projection. ▪ Non-Rev Units / Bad Debt / Adjustments: This item reflects adjustments made for non-revenue generating units and bad debts ▪ Repairs & Maintenance / Turnkey: This category includes Trash that have not been collected. We projected a 3.5% Non- Removal, General Maint. Other, Plumbing Supplies, Carpentry Revenue/Bad Debt adjustment for Y1 in the Pro Forma Valuation. Supplies, Hardware Supplies, Misc Constr Sup, Plumbing Contract, HVAC Contract, HVAC Supplies, Lock & Key Supplies, Lock & Key ▪ Fee Income: The Fee Income category includes Legal Fines & Fees, Contract, Other Mtce Expense, Contract Painting, Paint Supplies, Application Fee Income, Late Fee Income, Convenience Fee. Fee Hardware Supplies, Lock & Key Supplies, Plumbing Supplies, Misc Income in the Pro Forma Valuation was increased by 3.0% from the Const. Supp, Contract Painting. Repairs and Maintenance Expenses Trailing 12-Month Financials. were decreased by ~8% from the Trailing 12-Month financials in year 1 of the Pro Forma Valuation, and then increased by 2.5% in ▪ RUBS Income: The RUBS Income category includes Utility each year in the 10-year projection. Reimbursement Income. RUBS Income in the Pro Forma Valuation was increased by 3.0% from the Trailing 12-Month Financials. ▪ Management Fee: We assume a 5.0% management fee, consistent with market standards and similar properties of this size and bracket ▪ Other Income: The Other Income category includes Forfeited of revenue. Security Deposits. Other Income in the Pro Forma Valuation was increased by 3.0% from the Trailing 12-Month Financials. ▪ Utilities: This line item includes Electric House, Electric Unit, Water, Sewer, Gas House. Utility Expenses were increased by 2.5% over the ▪ Total Income: Total Operating Income Y1 is projected at $146,356. Trailing 12-Month Financials and in each year in the 10-Year Projection.

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▪ Contracted Services: This line item includes Landscaping Lawn, Landscaping Snow, Exterminating. Contracted Services were increased to $175/unit, which is in line with this caliber of property. Conctracted Services were then increased by 2.5% in each year in the 10-Year Projection.

▪ Real Estate Taxes: Parkview Court West is located in Wayne County and is subject to its taxing authority. We strongly recommend consulting a tax professional regarding this line item.

Parkview Court West taxes were adjusted to reflect the 2018 State Equalized Value (SEV). Taxes were also increased 2.0% annually in the 10-Year Projection. A detailed Property Tax Analysis is included in the following pages.

▪ Insurance: Insurance Expenses were increased by 2.5% over the Trailing 12-Month Financials and in each year in the 10-Year Projection.

▪ Replacement Reserves: A Replacement Reserve of $300 per unit is factored into the Pro Forma and 10-year projection. This is consistent with industry standards and lender requirements today.

▪ Net Operating Income (NOI): Projected FY1 Net Operating Income after replacement reserves is $46,726.

FINANCING

Parkview Court West is being offered as All Cash.

PALMER PARK PORTFOLIO

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TAX ANALYSIS Address: 381 Covington Dr

PARKVIEW COURT WEST COURT PARKVIEW City, State: Detroit, MI Zip: 48203 Units: 24 Parcel #: 00284421 2016 2017 2018

SEV $105,000 $106,600 $111,900 Taxable Value $84,485 $85,245 $87,035

Millage Rates Summer 76.697 77.475 76.231 Winter 11.393 9.393 9.393 Total 88.091 86.868 85.624

Admin Fees $74.41 $74.04 $71.51 Interest Fees $577.02 $0.00 $0.00 Inspection Fee $100.00 $100.00 $100.00 Total Fees $751.43 $174.04 $171.51

Total Taxes based on SEV (+ Fees) $10,001 $9,434 $9,753 Total Taxes based on Taxable Value (+Fees) $8,194 $7,579 $7,624 $/Unit (SEV) $417 $393 $406 $/Unit (Taxable) $341 $316 $318

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This text is here to lock in the rotation orientation. It has to be longer than the tab texts in order to register so I'm padding this not as much as possible PROPERTY SUMMARY PROPERTY DESCRIPTION

Address: 661 Covington Drive Paka Apatets is a -uit, to-sto, gade-stle apatet ouit loated i the Detoit Suu of Highlad Pak, Mihiga. Built i , this popet featues oe, to- PARKWAY Detroit, MI 48203 sto uildig ith idoo oido aess. The uit i osists of oe-edoo / oe- County: Wayne ath uits easuig feet, ad to-edoo / oe-ath uits easuig suae Units: 47 feet. The aeage uit size is suae feet. Uit Aeiies at this ouit ilude efigeato, age, ad hadood loos. The outside of the uildig featues aiued Year Built: 1949 shus ad gass la.

Parcel: 02-00261-626 The popet ofes the folloig ouit aeiies:

Total SF: 33,186 • Olie aiteae euest sste, olie et paet Average SF: 706 • -hou aiteae, o-site laud, pet-fiedl Number of Buildings: 1 • O-site staf, high-speed Iteet aess Stories 2 • Sufae-leel pakig, aied loo plas Type of Buildings: Two-Story, Garden-Style Roofs: Pitched, Composition Shingle Exterior: Masonry Metering: Individual

Entryways: Indoor Corridor

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PalmerPark4.BerkadiaREA.com 27 1

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ONE BEDROOM / ONE BATH 700 SQUARE FEET

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Market Monthly Annual Units Type Unit SF Total SF Rent Mkt Rent Mkt Rent Rent/SF 31 1 Bed / 1 Bath 654 20,274 $528 $16,358 $196,301 $0.81 16 2 Bed / 1 Bath 807 12,912 $635 $10,166 $121,988 $0.79 47 706 33,186 $564 $26,524 $318,290 $0.80

Berkadia Jun 2018 Income ProForma T3 Jun 2018 T12 2017 Annualized

Scheduled Market Rent $318,290 $282,910 $288,338 $286,216 Less: Loss-to-Lease 2.00% ($6,366) $0 $0 $0 Less: Vacancy 5.00% ($15,914) $0 $0 $0 Less: Non-Rev/Bad Debt/Adjust 1.50% ($4,774) $0 $0 $0 Net Rental Income $291,235 $282,910 $288,338 $286,216

Plus: Fee Income $7,070 $7,213 $6,864 $6,877 Plus: RUBS Income $2,929 $4,400 $2,844 $2,648 Plus: Other Income $268 $660 $260 $355 Total Operating Income (EGI) $301,502 $295,183 $298,306 $296,096

Expenses Per Unit Jun 2018 T12 Jun 2018 T12 2017 Administrative $114 $5,364 $5,234 $5,234 $6,133 Advertising & Promotion $138 $6,468 $6,310 $6,310 $5,332 Payroll $900 $42,300 $73,868 $73,868 $83,311 Repairs & Maintenance/Turnover $650 $30,550 $38,187 $38,187 $21,360 Management Fee 4.00% $257 $12,060 $17,967 $17,967 $17,827 Utilities $1,662 $78,105 $76,200 $76,200 $69,848 Contracted Services $175 $8,225 $2,424 $2,424 $3,632 Real Estate Taxes $494 $23,213 $22,859 $22,859 $50,109 Insurance $220 $10,340 $8,872 $8,872 $17,518 Replacement Reserve $300 $14,100 $14,100 $14,100 $14,100 Total Expenses $230,725 $266,020 $266,020 $289,171

Per Unit: $4,909 $5,660 $5,660 $6,153 PALMER PARK PORTFOLIO Per SF: $6.95 $8.02 $8.02 $8.71

Net Operating Income $70,778 $29,163 $32,286 $6,925

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▪ Scheduled Market Rent: The market rents used in the Pro Forma ▪ Administrative: Administrative expenses include Telephone, Internet, analysis for Parkway Apartments are per the 6/30/2018 rent roll. Answering Service, Legal Expense, Other Prof Fees, Office Lease, Scheduled Market Rents total $318,290 annually or $0.80 per Bank Charges, Office Supplies, Food & Drink, Employee Party, square foot. Uniforms, Postage, Computer/Buildium, Backgrnd & Credit, Gasoline/Mileage, Licenses & Other, Bank Fees. Administrative ▪ Loss to Lease: The Loss to Lease represents the difference between Expenses were increased by 2.5% over the Trailing 12-Month the contract rents and market rents. There is no current projected Financials and in each year in the 10-Year Projection. Loss to Lease in the Notes to Pro Forma. ▪ Advertising & Promotion: The Advertising and Promotion expenses ▪ Vacancy / Occupancy: As of 6/30/2018, the physical occupancy include 64501 - Media Advertising, 64502 - Internet Adv. was 100.00%. Based on recent trends and economic forecasts, the Advertising and Promotion expenses were decreased by 59% from market occupancy should remain at or above 95.0%. Based on the Trailing 12-Month Financials and then increased by 2.5% in industry standards, the occupancy is underwritten at 95.0%. each year of the 10-Year Projection.

▪ Concessions: There were no Concessions included in the Pro Forma ▪ Payroll: Payroll expenses includes Mgmt & Admin, Leasing & Mktg, Valuation. Maintenence Staff, Janitorial, Commissions, Bonus Staff, Bonus Mgmt, Employee Educ. Payroll Expenses were decreased by ~43% ▪ Non-Rev Units / Bad Debt / Adjustments: This item reflects to $900/unit from the Trailing 12-Month Financials in Year 1 of the adjustments made for non-revenue generating units and bad debts Pro Forma Valuation, and then increased by 2.5% in each year in the that have not been collected. We projected a 0.75% Non- 10-Year Projection. Revenue/Bad Debt adjustment for Y1 in the Pro Forma Valuation. ▪ Repairs & Maintenance / Turnkey: This category includesTrash ▪ Fee Income: The Fee Income category includes Legal Fines & Fees, Removal, Fire Safety Monitor, Alarm Monitor, Parking/Valet, General Application Fee Income, Late Fee Income, NSF Fee Income, Maint. - Other, Common Area Sup Plumbing Supplies, - Carpentry Convenience Fee, Month to Month Fees. Fee Income in the Pro Supplies, Hardware Supplies, Masonry SuppliesWindow Coverings, Forma Valuation was increased by 3.0% from the Trailing 12-Month Windows,Glass, HV AC Supplies, Lock & Key Supplies, Light Bulb & Financials. Fixt, Misc Constr Sup, Electric Contract, Carpentry Contract, HVAC Contract, Lock & Key Contract, Fire Safety Mtce, Other Mtce ▪ RUBS Income: The RUBS Income category includes Utility Expense, Paint Supplies Occupied/Common, Contract Painting, Turn Reimbursement Income. RUBS Income in the Pro Forma Valuation Costs – Other, Turn Costs, Paint SuppliesCleaning Supplies, was increased by 3.0% from the Trailing 12-Month Financials. Electrical Supplies, Plumbing Supplies, Carpentry Supplies, Hardware Supplies, Window Coverings, Lock & Key Supplies, Misc Const. ▪ Other Income: The Other Income category includes Pet Monthly Supp, Turn Labor, Contract Painting. Repairs and Maintenance Rent, Forfeited Security Deposits, Keys & Lock Outs, Appliance Rental Expenses were decreased by 34.5% from the Trailing 12-Month Income. Other Income in the Pro Forma Valuation was increased by financials in year 1 of the Pro Forma Valuation, and then increased 3.0% from the Trailing 12-Month Financials. by 2.5% in each year in the 10-year projection.

▪ Total Income: Total Operating Income Y1 is projected at $301,502. ▪ Management Fee: We assume a 5.0% management fee, consistent with market standards and similar properties of this size and bracket of revenue.

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▪ Utilities: This line item includes Electric House, Electric Unit, Water, Sewer, Gas House, Gas Unit. Utility Expenses were increased by 2.5% over the Trailing 12-Month Financials and in each year in the 10-Year Projection.

▪ Contracted Services: This line item includes Landscaping - Lawn, Landscaping - Snow, Exterminating. Contracted Services were increased by 239% to $175/unit over the Trailing 12-Month Financials and then were increased by 2.5% in each year in the 10- Year Projection.

▪ Real Estate Taxes: Parkway Apartments is located in Wayne County and is subject to its taxing authority. We strongly recommend consulting a tax professional regarding this line item.

Parkway taxes were adjusted to reflect the 2018 State Equalized Value (SEV). Taxes were also increased 2.0% annually in the 10-Year Projection. A detailed Property Tax Analysis is included in the following pages.

▪ Insurance: Insurance Expenses were increased by 2.5% over the Trailing 12-Month Financials and annually in each year in the 10- Year Projection.

▪ Replacement Reserves: A Replacement Reserve of $300 per unit is factored into the Pro Forma and 10-year projection. This is consistent with industry standards and lender requirements today.

▪ Net Operating Income (NOI): Projected FY1 Net Operating Income after replacement reserves is $70,778.

FINANCING

Parkway Apartments is being offered as All Cash.

PALMER PARK PORTFOLIO

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PARKWAY TAX ANALYSIS Address: 661 Covington Dr City, State: Detroit, MI Zip: 48203 Units: 47 Parcel #: 02002616-26 2016 2017 2018

SEV $252,500 $256,300 $269,100 Taxable Value $194,646 $196,397 $200,521

Millage Rates Summer 76.697 77.475 76.231 Winter 11.393 9.393 9.393 Total 88.091 86.868 85.624

Admin Fees $171.45 $170.59 $71.51 Interest Fees $1,306.20 $0.00 $0.00 Inspection Fee $100.00 $100.00 $100.00 Water/Sewer Fee $0.00 $2,750.04 $0.00 Total Fees $1,577.65 $3,020.63 $171.51

Total Taxes based on SEV (+ Fees) $23,821 $25,285 $23,213 Total Taxes based on Taxable Value (+Fees) $18,724 $20,081 $17,341 $/Unit (SEV) $507 $538 $494 $/Unit (Taxable) $398 $427 $369

32 PALMER PARK PORTFOLIO PARK PALMER

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This text is here to lock in the rotation orientation. It has to be longer than the tab texts in order to register so I'm padding this not as much as possible PROPERTY SUMMARY PROPERTY DESCRIPTION

Address: 300 Whitmore Road Whitoe Plaza is a -uit, fou-sto, id-ise apatet ouit loated i the Detoit Detroit, MI 48203 Suu of Highlad Pak, Mihiga. Built i , this popet featues oe, fou-sto uildig ith idoo oido aess. The uit i osists of oe studio apatet easuig County: Wayne feet, ad oe-edoo / oe-ath uits easuig suae feet, ad to-

WHITMORE PLAZA WHITMORE Units: 49 edoo / oe-ath uits easuig suae feet. The aeage uit size is suae feet. Uit Aeiies at this ouit ilude efigeato, age, ad hadood loos. The Year Built: 1928 outside of the uildig featues aiued shus ad gass la.

Parcel: 02-002603 The popet ofes the folloig ouit aeiies:

Total SF: 35,158 • Olie aiteae euest sste, olie et paet Average SF: 718 • -hou aiteae, o-site laud, pet-fiedl Number of Buildings: 1 • O-site staf, high-speed Iteet aess Stories 4 • Sufae-leel pakig, aied loo plas Type of Buildings: Mid-rise Roofs: Pitched and Flat Exterior: Masonry Metering: Individual

Entryways: Indoor Corridor

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PalmerPark4.BerkadiaREA.com 35 1

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TWO BEDROOM / ONE BATH 1,050 SQUARE FEET

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Market Monthly Annual Units Type Unit SF Total SF Rent Mkt Rent Mkt Rent Rent/SF 1 Studio 400 400 $450 $450 $5,400 $1.13 26 1 Bed / 1 Bath 654 17,004 $541 $14,072 $168,867 $0.83 22 2 Bed / 1 Bath 807 17,754 $634 $13,958 $167,501 $0.79 49 718 35,158 $581 $28,481 $341,768 $0.81

Berkadia Income ProForma June 2018 T3 June 2018 T12 2017 Annualized

Scheduled Market Rent $341,768 $297,107 $270,809 $270,213 Less: Loss-to-Lease 2.00% ($6,835) $0 $0 $0 Less: Vacancy 5.00% ($17,088) $0 $0 $0 Less: Non-Rev/Bad Debt/Adjust 1.50% ($5,127) $0 $0 $0 Net Rental Income $312,718 $297,107 $270,809 $270,213

Plus: Fee Income $7,736 $7,510 $6,385 $5,723 Plus: RUBS Income $3,790 $3,680 $3,467 $4,487 Plus: Other Income $247 $240 $507 $507 Total Operating Income (EGI) $324,491 $308,537 $281,168 $280,931

Expenses Per Unit June 2018 T12 June 2018 T12 2017 Administrative $100 $4,900 $2,215 $2,215 $4,527 Advertising & Promotion $52 $2,551 $2,489 $2,489 $2,789 Payroll $1,000 $49,000 $69,142 $69,142 $78,257 Repairs & Maintenance/Turnover $650 $31,873 $31,096 $31,096 $22,745 Management Fee 5.00% $331 $16,225 $16,707 $16,707 $16,896 Utilities $1,444 $70,759 $69,033 $69,033 $55,832 Contracted Services $175 $8,575 $1,614 $1,614 $2,006 Real Estate Taxes $459 $22,494 $12,580 $12,580 $38,334 Insurance $167 $8,194 $7,994 $7,994 $16,520 Replacement Reserve $300 $14,700 $14,700 $14,700 $14,700 Total Expenses $229,272 $227,571 $227,571 $252,605

Per Unit: $4,679 $4,644 $4,644 $5,155 PALMER PARK PORTFOLIO Per SF: $6.52 $6.47 $6.47 $7.18

Net Operating Income $95,219 $80,966 $53,597 $28,325

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INCOME ASSUMPTIONS EXPENSE ASSUMPTIONS

▪ Scheduled Market Rent: The market rents used in the Pro Forma ▪ Administrative: Administrative expenses include Telephone, Internet, WHITMORE PLAZA WHITMORE analysis for Whitmore Plaza are per the 6/30/2018 rent roll. Answering Service, Legal Expense, Bank Charges, Office Supplies, Scheduled Market Rents total $341,768 annually or $0.81 per Food & Drink, Employee Party, Uniforms, Postage, square foot. Computer/Buildium, Backgrnd & Credit, Gasoline/Mileage, Bank Fees. Administrative Expenses were increased to $100/unit over the ▪ Loss to Lease: The Loss to Lease represents the difference between Trailing 12-Month Financials and increased by 2.5% in each year of the contract rents and market rents. There is no current projected the 10-Year Projection. Loss to Lease in the Notes to Pro Forma. ▪ Advertising & Promotion: The Advertising and Promotion expenses ▪ Vacancy / Occupancy: As of 6/30/2018, the physical occupancy include Media Advertising, Internet Adv. Advertising and Promotion was 93.88%. Based on recent trends and economic forecasts, the expenses were decreased by 59% from the Trailing 12-Month market occupancy should remain at or above 95.0%. Based on Financials and then increased by 2.5% in each year of the 10-Year industry standards, the occupancy is underwritten at 95.0%. Projection.

▪ Concessions: There were no Concessions included in the Pro Forma ▪ Payroll: Payroll expenses includes Salaries & Employee, Employee Valuation. Educ, Mgmt & Admin, Leasing & Mktg, Maintenence Staff, Janitorial, Commissions, Bonus Staff, Bonus Mgmt. Payroll Expenses ▪ Non-Rev Units / Bad Debt / Adjustments: This item reflects were decreased by ~29% to $1,000/unit from the Trailing 12- adjustments made for non-revenue generating units and bad debts Month Financials in Year 1 of the Pro Forma Valuation, and then that have not been collected. We projected a 0.75% Non- increased by 2.5% in each year in the 10-Year Projection. Revenue/Bad Debt adjustment for Y1 in the Pro Forma Valuation. ▪ Repairs & Maintenance / Turnkey: This category includes Trash ▪ Fee Income: The Fee Income category includes Legal Fines & Fees, Removal, Fire Safety Monitor, Alarm Monitor, General Maint.Other, Application Fee Income, Late Fee Income, NSF Fee Income, Electrical parts, Plumbing Supplies, Carpentry Supplies, Hardware Convenience Fee. Fee Income in the Pro Forma Valuation was Supplies, Window Coverings, Appliance Supplies, HVAC Supplies, increased by 3.0% from the Trailing 12-Month Financials. Lock & Key Supplies, Light Bulb & Fixt, Misc Constr Sup, Electric Contract, Plumbing Contract, Hardware/Locks Contract, Boiler ▪ RUBS Income: The RUBS Income category includes Utility Contract, Roof Contract, HVAC Contract, Alarm Maintenance, Other Reimbursement Income. RUBS Income in the Pro Forma Valuation mtce Expense, Paint Supplies, Cleaning Supplies, Plumbing Supplies, was increased by 3.0% from the Trailing 12-Month Financials. Hardware Supplies, Lock & Key Supplies, Light Bikbs & Fixt, Misc Const. Supp, Contract Painting. Repairs & Maintenance expenses ▪ Other Income: The Other Income category includes Laundry Room were increased by 2.5% over the Trailing 12-Month Financials and in Income, Pet Monthly Rent, Forfeited Security Deposits. Other Income each year in the 10-Year Projection. in the Pro Forma Valuation was increased by 3.0% from the Trailing 12-Month Financials. ▪ Management Fee: We assume a 5.0% management fee, consistent with market standards and similar properties of this size and bracket ▪ Total Income: Total Operating Income Y1 is projected at $324,491. of revenue.

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▪ Utilities: This line item includes Electric House, Electric Unit, Water, Sewer, Gas House. Utility Expenses were increased by 2.5% over the Trailing 12-Month Financials and in each year in the 10-Year Projection.

▪ Contracted Services: This line item includes LandscapingLawn, LandscapingSnow. Contracted Services were increased by 431% to $175/unit over the Trailing 12-Month Financials and then were increased by 2.5% in each year in the 10-Year Projection.

▪ Real Estate Taxes: Whitmore Plaza is located in Wayne County and is subject to its taxing authority. We strongly recommend consulting a tax professional regarding this line item.

Whitmore Plaza taxes were adjusted to reflect the 2018 State Equalized Value (SEV). Taxes were also increased 2.0% annually in the 10-Year Projection. A detailed Property Tax Analysis is included in the following pages.

▪ Insurance: Insurance Expenses were increased by 2.5% over the Trailing 12-Month Financials and annually in each year in the 10- Year Projection.

▪ Replacement Reserves: A Replacement Reserve of $300 per unit is factored into the Pro Forma and 10-year projection. This is consistent with industry standards and lender requirements today.

▪ Net Operating Income (NOI): Projected FY1 Net Operating Income after replacement reserves is $95,219.

FINANCING

Whitmore Plaza is being offered as All Cash.

PALMER PARK PORTFOLIO

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TAX ANALYSIS Address: 300 Whitmore Rd City, State: Detroit, MI Zip: 48203 WHITMORE PLAZA WHITMORE Units: 49 Parcel #: 02002603 2016 2017 2018

SEV $240,000 $243,600 $260,700 Taxable Value $240,000 $242,160 $247,245

Millage Rates Summer 76.697 77.475 76.231 Winter 11.393 9.393 9.393 Total 88.091 86.868 85.624

Admin Fees $211.41 $210.35 $71.51 Interest Fees $1,691.44 $0.00 $0.00 Inspection Fee $100.00 $100.00 $100.00 Total Fees $2,002.85 $310.35 $171.51

Total Taxes based on SEV (+ Fees) $23,145 $21,471 $22,494 Total Taxes based on Taxable Value (+Fees) $23,145 $21,346 $21,342 $/Unit (SEV) $472 $438 $459 $/Unit (Taxable) $472 $436 $436

40 PALMER PARK PORTFOLIO PARK PALMER

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This text is here to lock in the rotation orientation. It has to be longer than the tab texts in order to register so I'm padding this not as much as possible COMPARABLE RENTAL PROPERTIES SUMMARY

DISTANCE (MI)

PROPERTY CITY FROM SUBJECT UNITS BUILT OCCUPANCY SF ASKING RENT RENT / SF

S Palmer Park Portfolio Detroit 144 0 693 $561 $0.81

1 Palmer Park Garden Apartments Highland Park 6.82 47 1925 841 $874 $1.04

2 980 Whitmore Road Detroit 7.14 44 1940 800 $700 $0.88

3 Hampshire House Detroit 7.13 72 1949 550 $650 $1.18 COMPARABLE PROPERTIES COMPARABLE

4 Cook Apartments Highland Park 7.11 21 1940 750 $603 $0.80

5 The Woodford Highland Park 6.33 87 1923 666 $531 $0.80

6 Palmer Park Estates Highland Park 7.03 69 1928 94.2% 926 $773 $0.83

7 LaVogue Square Detroit 6.76 41 1952 967 $720 $0.74

Totals / Averages* 6.90 54 94% 765 $683 $0.89

*does not include subject

Palmer Park Garden 980 Whitmore Road Hampshire House Cook Apartments The Woodford Palmer Park Estates LaVogue Square Apartments

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ASKING UNIT MIX: UNITS TYPE SF RENT RENT / SF NOTES S 1 0/1.00 400 $450 $1.13 31 1/1.00 654 $528 $0.81 48 1/1.00 654 $537 $0.82 26% 26 1/1.00 654 $541 $0.83 Studio / 1 Bath 1% 38 2/1.00 807 $635 $0.79 1 Bed / 1 Bath 73% 144 693 $561 $0.81 2 Bed / 1 Bath 26% 73% PALMER PARK PORTFOLIO 361 Covington Drive Detroit, MI 48203

UNITS: 144

ASKING UNIT MIX: UNITS TYPE SF RENT RENT / SF NOTES 1 15 1/1.00 654 $765 $1.17 16 2/1.00 904 $872 $0.96 16 3/2.00 954 $979 $1.03 47 841 $874 $1.04 34% 32% 1 Bed / 1 Bath 32% 2 Bed / 1 Bath 34% 3 Bed / 2 Bath 34%

34% PALMER PARK GARDEN APARTMENTS 17111 2nd Ave Highland Park, MI 48203 PALMER PARK PORTFOLIO

DISTANCE (MI): 6.82 UNITS: 47 BUILT: 1925

PalmerPark4.BerkadiaREA.com 43 1

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ASKING UNIT MIX: UNITS TYPE SF RENT RENT / SF NOTES 2 44 2/1.00 800 $700 $0.88 44 800 $700 $0.88

100% 2 Bed / 1 Bath 100% COMPARABLE PROPERTIES COMPARABLE 980 WHITMORE ROAD 950 Whitmore Road Detroit, MI 48203

DISTANCE (MI): 7.14 UNITS: 44 BUILT: 1940

ASKING UNIT MIX: UNITS TYPE SF RENT RENT / SF NOTES 3 72 1/1.00 550 $650 $1.18 72 550 $650 $1.18

100% 1 Bed / 1 Bath 100%

HAMPSHIRE HOUSE 885 Covington Drive Detroit, MI 48203

DISTANCE (MI): 7.13 UNITS: 72 BUILT: 1949

44 PALMER PARK PORTFOLIO PARK PALMER

ASKING UNIT MIX: UNITS TYPE SF RENT RENT / SF NOTES 4 21 1/1.00 750 $603 $0.80 21 750 $603 $0.80

100% 1 Bed / 1 Bath 100%

COOK APARTMENTS 951 Whitmore Rd Highland Park, MI 48203

DISTANCE (MI): 7.11 UNITS: 21 BUILT: 1940

ASKING UNIT MIX: UNITS TYPE SF RENT RENT / SF NOTES 5 7 0/1.00 500 $537 $1.07 68 1/1.00 650 $517 $0.80 14% 12 2/1.00 850 $604 $0.71 87 666 $531 $0.80 Studio / 1 Bath 8% 1 Bed / 1 Bath 78% 2 Bed / 1 Bath 14%

78% THE WOODFORD 15948 Woodward Avenue Highland Park, MI 48203 PALMER PARK PORTFOLIO DISTANCE (MI): 6.33 UNITS: 87 BUILT: 1923

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ASKING UNIT MIX: UNITS TYPE SF RENT RENT / SF NOTES 6 30 1/1.00 750 $671 $0.89 33 2/1.00 1,000 $795 $0.80 9% 6 3/2.00 1,400 $1,157 $0.83 69 926 $773 $0.83 1 Bed / 1 Bath 43% 43% 2 Bed / 1 Bath 48% 48% 3 Bed / 2 Bath 9% COMPARABLE PROPERTIES COMPARABLE PALMER PARK ESTATES 1941 West McNichols Road Highland Park, MI 48203

DISTANCE (MI): 7.03 UNITS: 69 BUILT: 1928 OCCUPANCY: 94.2%

ASKING UNIT MIX: UNITS TYPE SF RENT RENT / SF NOTES 7 16 1/1.00 686 $483 $0.70 16 2/1.00 976 $780 $0.80 9 3/2.00 1,450 $1,033 $0.71 22% 41 967 $720 $0.74 39% 1 Bed / 1 Bath 39% 2 Bed / 1 Bath 39% 3 Bed / 2 Bath 22%

39% LAVOGUE SQUARE 225 Merton Road Detroit, MI 48203

DISTANCE (MI): 6.76 UNITS: 41 BUILT: 1952

46 PALMER PARK PORTFOLIO PARK PALMER

Subject: Palmer Park Portfolio 361 Covington Drive Detroit, MI 48203

1. Palmer Park Garden Apartments 17111 2nd Ave Highland Park, MI 48203

2. 980 Whitmore Road 950 Whitmore Road Detroit, MI 48203

3. Hampshire House 885 Covington Drive Detroit, MI 48203

4. Cook Apartments 951 Whitmore Rd Highland Park, MI 48203

5. The Woodford 15948 Woodward Avenue Highland Park, MI 48203

6. Palmer Park Estates 1941 West McNichols Road Highland Park, MI 48203

7. LaVogue Square 225 Merton Road Detroit, MI 48203 PALMER PARK PORTFOLIO

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PROPERTY UNITS BUILT SALE DATE PRICE PRICE / UNIT PRICE / SF AVG. SF CAP RATE GRM UNIT MIX S Palmer Park Portfolio 144 0 693 1% - Studio / 73% - 1 bed 361 Covington Drive 26% - 2 bed Detroit, MI 48203 1 Russell Woods 156 1960 04/18 $3,700,000 $23,718 $30.08 788 62% - 1 bed / 38% - 2 bed 2255 Webb Street Detroit, MI 48206 2 Palmer Park Cooperative 32 1952 10/16 $900,000 $28,125 $45.92 613 13.97% 2.93 50% - 1 bed / 50% - 2 bed

COMPARABLE PROPERTIES COMPARABLE 811 Covington Drive Highland Park, MI 48203 3 Village Square 190 1964 09/16 $5,450,000 $28,684 $56.52 507 10.45% 4.21 17150 Meyers Road Detroit, MI 48235 4 Westfield Place 54 1960 12/17 $1,420,000 $26,296 $44.53 591 9.10% 85% - 1 bed / 15% - 2 bed 16501 Greenfield Road Detroit, MI 48235 5 Village Square 190 1964 09/16 $5,450,000 $28,684 $56.52 507 10.45% 4.21 17150 Meyers Road Detroit, MI 48235 6 Marwood 53 1924 09/16 $2,050,000 $38,679 $51.63 749 13.85% 3.96 74% - 1 bed / 17% - 2 bed 53 Marston Street 9% - 3 bed Detroit, MI 48202 Totals / Averages* $29,031 $47.53 626 11.56% 3.83

*does not include subject

Russell Woods Palmer Park Cooperative Village Square Westfield Place Village Square Marwood

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PALMER PARK PORTFOLIO RUSSELL WOODS PALMER PARK COOPERATIVE VILLAGE SQUARE 361 Covington Drive 2255 Webb Street 811 Covington Drive 17150 Meyers Road Detroit, MI 48203 Detroit, MI 48206 Highland Park, MI 48203 Detroit, MI 48235

UNITS: 144 BUILT: 1960 BUILT: 1952 BUILT: 1964 AVG SF: 693 UNITS: 156 UNITS: 32 UNITS: 190 LIST PRICE: Market Pricing PRICE / UNIT: $23,718 PRICE / UNIT: $28,125 PRICE / UNIT: $28,684 PRICE / SF: $30.08 PRICE / SF: $45.92 PRICE / SF: $56.52 AVG SF: 788 AVG SF: 613 AVG SF: 507 SOLD FOR: $3,700,000 SOLD FOR: $900,000 SOLD FOR: $5,450,000 CLOSED ON: 4/18 CLOSED ON: 10/16 CLOSED ON: 9/16 CAP RATE: 14.0% CAP RATE: 10.5% GRM: 2.93 GRM: 4.21

UNIT MIX: UNIT MIX: UNIT MIX: Studio - 1% One Bedroom - 62% One Bedroom - 50%

One Bedroom - 73% Two Bedroom - 38% Two Bedroom - 50% Two Bedroom - 26% PALMER PARK PORTFOLIO

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4 5 6 COMPARABLE PROPERTIES COMPARABLE

WESTFIELD PLACE VILLAGE SQUARE MARWOOD 16501 Greenfield Road 17150 Meyers Road 53 Marston Street Detroit, MI 48235 Detroit, MI 48235 Detroit, MI 48202

BUILT: 1960 BUILT: 1964 BUILT: 1924 UNITS: 54 UNITS: 190 UNITS: 53 PRICE / UNIT: $26,296 PRICE / UNIT: $28,684 PRICE / UNIT: $38,679 PRICE / SF: $44.53 PRICE / SF: $56.52 PRICE / SF: $51.63 AVG SF: 591 AVG SF: 507 AVG SF: 749 SOLD FOR: $1,420,000 SOLD FOR: $5,450,000 SOLD FOR: $2,050,000 CLOSED ON: 12/17 CLOSED ON: 9/16 CLOSED ON: 9/16 CAP RATE: 9.1% CAP RATE: 10.5% CAP RATE: 13.9% GRM: 4.21 GRM: 3.96

UNIT MIX: UNIT MIX: One Bedroom - 85% One Bedroom - 74%

Two Bedroom - 15% Two Bedroom - 17% Three Bedroom - 9%

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Subject: Palmer Park Portfolio

Detroit, MI 48203

1. Russell Woods 2255 Webb Street Detroit, MI 48206

2. Palmer Park Cooperative 811 Covington Drive Highland Park, MI 48203

3. Village Square 17150 Meyers Road Detroit, MI 48235

4. Westfield Place 16501 Greenfield Road Detroit, MI 48235

5. Marwood 53 Marston Street Detroit, MI 48202 PALMER PARK PORTFOLIO

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This text is here to lock in the rotation orientation. It has to be longer than the tab texts in order to register so I'm padding this not as much as possible PALMER PARK DEVELOPMENT MAP PALMER PARK DEVELOPMENT AND CONSTRUCTION PALMER PARK PORTFOLIO

1. Michigan State Fairgrounds 2. Fitzgerald Neighborhood Redevelopment 3. Livernois & 7 Mile

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1-Michigan State Fairgrounds 2-Fitzgerald Neighborhood 3-Livernois & 7Mile Redevelopment

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This text is here to lock in the rotation orientation. It has to be longer than the tab texts in order to register so I'm padding this not as much as possible ECONOMIC AND DEMOGRAPHIC OVERVIEW APPENDIX Downtown Development

From 2017 to 2020, development in Downtown Detroit is expected to total $5.4 billion - Benzinga.com

Hotbed for Tech Jobs

Detroit ranked No. 3 in the U.S. as a "hotbed" for tech jobs based on percentage of jobs considered tech - Oregon Bureau of Economic Analysis

INTRODUCTION Billions of dollars are being invested in Metro Detroit, rapidly attracting new businesses, creating jobs, and drawing Millennials. The six-county region in southeast Michigan, the Detroit-Warren-Dearborn, MI, Metropolitan International Trade Hub Statistical Area (MSA), encompasses nearly 3,900 square miles. Home to more than 4.3 million residents, Metro Detroit is the 14th-largest MSA in The Detroit MSA boasts the ifth largest export market in the United States, the nation and a key pillar of the U.S. economy. Increased investment is with shipments totaling $53.2 billion rejuvenating downtown and driving growth as businesses, investors, and - Detroit Chamber of Commerce entrepreneurs are recognizing Detroit as a city of opportunity.

Greater Detroit is the epicenter of the global automotive industry and home to other specialized industries including health care, defense, information technology, and life sciences. The area is home to 10 of the 16 Fortune 500 companies headquartered in Michigan, including General Motors (No. 10), Ford Motor Company (No. 11), Lear Corporation (No. Fortune 500 148), and Ally Financial Inc. (No. 299). Greater Detroit is home to 10 Fortune 500 headquarters, six of which are ailiated with the automotive industry - Fortune Magazine

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DEMOGRAPHICS

ST RD 64% OF WORKERS ARE IN 1 MOST POPULATED 3 FOR CITIES RAPIDLY METRO AREA WHITE-COLLAR ATTRACTING IN MICHIGAN POSITIONS METROWIDE MILLENNIAL JOB SEEKERS

4.3m 875.6k 414.3k 954.8k $64.0k

The Detroit MSA is home The metro area’s median 30% of Greater Detroit 24% of Metro Detroit 22% of MSA residents to more than 4.3 million household income is residents age 25 and households earn are within the key renter residents projected to reach older hold a bachelor’s $100,000 or more age group of 18 to 35 $64,034 by 2023, up degree or higher annually years

15.6% from 2018 PALMER PARK PORTFOLIO

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Industry Breakdown Jul-17 Jul-18

Professional and Business Services

Trade, Transportation, and Utilities

Education and Health Services

Manufacturing

Leisure and Hospitality JOB GROWTH 11,200 jobs

Government created in the Leisure and Hospitality sector (Y-o-Y July '18) Financial Activities

Construction

Other Services

Information

0 100,000 200,000 300,000 400,000

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METRO EMPLOYMENT TRENDS

JULY 2018 5.0% the metro's monthly unemployment rate was unchanged annually Employment Trends DETROIT, MI MSA 18% 100,000 LARGEST EMPLOYERS Ford Motor Co. 48,000 15% 50,000 General Motors Co. 37,710

University of Michigan 32,750

12% 0 FCA US LLC 32,510

Beaumont Health System 28,040

9% (50,000) U.S. Government 18,920 Henry Ford Health System 17,610

Rock Ventures 16,620 6% (100,000) Trinity Health Michigan 14,670

Ascension Michigan 11,890

3% (150,000) Source: Detroit Chamber of Commerce, 2017 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018*

*Projected Unemployment Rate Jobs Added / Lost

JULY 2018 28,000 jobs PALMER PARK PORTFOLIO were created in the Detroit

metro area, a 1.4% Y-o-Y increase

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% GM DETROIT-HAMTRACK ASSEMBLY PLANT 98,400+ 40 Of Manufacturing Jobs Jobs Supported in Detroit Metro Area

$57 billion Statewide Economic Impact

Detroit is known as the automotive capital of the world, producing more cars and trucks than any other state in the country. More than 98,400 residents are in motor vehicle / parts manufacturing jobs metrowide, accounting for nearly 40% of all regional manufacturing jobs. Michigan nationally ranks number one in having the highest concentration of mechanical and industrial engineers. The Detroit metro is home to global automotive companies, such as Ford and General Motors, with the industry generating an economic impact of $57 billion statewide.

TRADE AND TRANSPORTATION

$ DETROIT–WINDSOR BORDER 53.2 billion 371,700 Merchandise Export Jobs Supported Value

$340 million Detroit–Windsor Daily Trade Crossing

The region’s trade and transportation industry is supported by seven international border crossings, one of which ranks as the busiest northern border crossing in North America. The Detroit–Windsor border crossing ranks among the richest border crossings in the world with over $340 million in goods crossing daily. The Detroit MSA ranked ifth amongst U.S. metros in merchandise export value, totaling $53.2 billion. The trade and transportation sector supports approximately 371,700 jobs throughout Greater Detroit.

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INFORMATION TECHNOLOGY

GENERAL MOTORS AUTONOMOUS VEHICLE TESTING 2,600 94,000+ Annual Graduates with Information Technology IT-Speciic Degrees Professionals

600 Software Patents by GM Since 2011

The convergence of automotive manufacturing and software development has created a thriving IT environment in Metro Detroit, with more than 94,000 IT professionals and 2,600 annual graduates with degrees in computer and information sciences from 60 local institutions. Since 2011, General Motors has iled for roughly 600 software patents, accounting for more than 15% of their patent activity during that time. Since 2009, Detroit’s IT job growth outpaced the state and the nation, and is expected to continue through 2025.

HEALTH CARE

$ DMC HARPER UNIVERSITY HOSPITAL 286,800 36 billion Annual Economic Jobs Supported Impact

$60,000 Annual Median Salary

Greater Detroit's health care sector is comprised of more than 13,000 businesses that support approximately 286,800 jobs, spurring an economic impact of roughly $36 billion annually. Employees in the health care industry earn a median salary of nearly $60,000 annually, about

7% above the metro's median household income. In 2017, Beaumont Hospital Royal Oak, DMC PALMER PARK PORTFOLIO Harper University Hospital, and University of Michigan Hospitals, all based in the Detroit region, were ranked among the top ive best hospitals in Michigan.

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GORDIE HOWE INTERNATIONAL BRIDGE THE DISTRICT DETROIT

43,000+ $1.8 billion Direct and Indirect Economic Impact Jobs Created

$2.1 billion 1,100 Development Permanent Jobs

The entire southeastern Michigan region will beneit from the new $2.1 billion The District Detroit is a 50-block, downtown development project, estimated to Gordie Howe International Bridge over the Detroit River, providing another fuel a $1.8 billion local economic impact and create more than 1,100 permanent link between the U.S. and Canada. More than 200,000 Michigan jobs depend and 8,000 construction jobs. The development includes a $450 million, on U.S.-Canada trade, and the project will generate an additional 12,000 18,000-seat sports and entertainment venue, the new home to both the Red jobs directly and 31,000 indirectly. The six-lane bridge will link Interstate 75 Wings and Pistons professional franchises. In addition, $200 million in private and Highway 401 from Detroit’s Delray neighborhood to Windsor, Canada. A investment for a mixed-use component will include a 300-450 room hotel, 150 groundbreaking ceremony took place in July 2018 on the project, to be followed residential units, and 200,000 square feet of retail, restaurant, and oice space. by full-scale construction as early as October. Completion of the bridge and The arena opened last September for the teams' 2017 seasons, bringing all four opening to traic is slated by 2023. In addition to the bridge, a 167-acre U.S. major sports teams within a few blocks from each other. The remainder of the customs plaza is planned that will spread from the bridge’s footprint. project is expected to be completed by the summer of 2019.

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CONSTRUCTION AND DEVELOPMENT

DETROIT RIVERFRONT PROJECT BEDROCK DOWNTOWN INVESTMENTS

$50 million 3.1 million Investment SF of Development

22-acre $2.2 billion Park Investment

The development of the Detroit Riverfront is underway. What was historically In December 2017, Dan Gilbert's real estate development company broke industrial land is now in the process of becoming a mixed-use development, ground on a $2.2 billion investment featuring various city projects. with the help of an engaged Detroit community. The riverfront project will Highlighting the investments are the $900 million Hudson Site and $830 mainly feature the 22-acre West Riverfront Park surrounded by residential million Monroe Blocks projects. The Hudson site will include one million buildings and retailers. A $50 million investment is currently focused on the square feet of residential, retail, and oice space. The Monroe Blocks project West Riverfront park. Other upgrades are already underway, including the will include a 35-story, 814,000-square-foot building with oice space, 482 redevelopment of the Stone Soap building. The building will feature food residential units, retail space, and three public plaza areas. The four projects retailers and a new home for the performing arts nonproit Shakespeare in will create 3.1 million square feet of downtown oice, retail, and residential PALMER PARK PORTFOLIO Detroit. Roads and walkways are currently under construction to provide space. In addition to 15,000 construction jobs, the projects are expected to residents easier access to the Riverfront. create 7,740 permanent jobs averaging $34 per hour once completed in 2022.

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GENERAL MOTORS WARREN TECH CAMPUS FORD DEARBORN CAMPUS MODERNIZATION

$1 billion 12,000 Investment New Jobs Created

2,600 7.5 million Salaried Jobs Created Square-Feet

General Motors is more than halfway complete on a $1 billion renovation Ford is working to consolidate their more than 44,000 employees in and expansion of its 326-acre, 6.2-million-square-foot, Technical Center Dearborn into two locations on one sprawling campus that will encompass in Warren. The center currently employs 19,000 people and plans to add the construction and renovation of more than 7.5 million square feet, which is 2,600 salaried jobs ranging from infotainment to IT to advanced powertrain anticipated to take more than a decade to build out. Construction of the new manufacturing. The project will include the construction of new design product campus at the Ford Research and Engineering Center is underway and studios and an information technology building, new testing areas at the will double the center's current employee count to 24,000 when completed Advanced Energy Center, and extensive renovations of existing oice, in 2023-24. The second project around Ford World Headquarters will break research and development facilities. General Motors will break ground by ground in 2021 with a scheduled completion date in 2026. This phase will year-end 2018 on the new studio building, which will surround the Design include a 700,000-square-foot design center, outdoor space, and a Ford Dome Auditorium. showroom and event venue.

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CONSTRUCTION AND DEVELOPMENT

HENRY FORD HEALTH SYSTEM PACKARD PLANT REDEVELOPMENT

300-acre 40-acre Detroit Campus Project

$500 million 3.5 million Expansion Project SF Complex

Henry Ford Health System is in the midst of a $500 million expansion and In May of 2017, the $300 million redevelopment of the Packard Plant— neighborhood improvement project of its 300-acre Detroit campus. The currently the nation's largest renovation project—broke ground. Over the project’s 10–15-year vision includes commercial, retail, residential, and green next 10 to 15 years, the 40-acre site will become a mixed-use development. space. In May of 2015, the new $30 million, 275,000-square-foot Cardinal The irst phase, a $23 million investment, will be concentrated at the former Health Distribution Center opened, generating approximately 100 new administration building. Six businesses will occupy this building, scheduled permanent jobs. The $155 million, six-story, 187,000-square-foot Brigitte for completion by year-end 2018. The developer, Fernando Palazuelo of Harris Cancer Pavilion is expected to open in early 2020. The Henry Ford Arte Express, plans to redevelop the 3.5 million-square-foot property in Health System currently employs more than 17,300 workers in metro Detroit three additional phases. Future phases include spaces for living, work, and PALMER PARK PORTFOLIO and generates more than $6 billion in annual economic activity. recreational use.

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NEW NET DELIVERIES 271 units ABSORPTION 1,071 units through June 2018 through 2Q18

In recent years, Detroit's economy is recovering with the Big Three automakers DETROIT METRO APARTMENT MARKET aiding in job growth. This boost in overall jobs has spurred demand for apartments, especially in the downtown area where more businesses are 6,000 Construction vs. Absorption opening new oices. About 30 properties are underway throughout Metro Detroit with several more being planned. 4,500

Deliveries in the Detroit metro totaled 271 new apartment units through the irst half of 2018, a year-over-year decrease of 71.5%. Development activity is 3,000 expected to total 1,115 units in 2018, equating to an annual decrease of 15.6%. 1,500 Through June 2018, net move-ins in the Detroit metro apartment market totaled 1,071 units, down about half of the number of units absorbed over the same time period one year prior. By the end of 2018, net absorption is expected 0 to settle at 259 units. (1,500) 2012 2013 2014 2015 2016 2017 2018*

*PROJECTED Deliveries Absorption

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RENT / OCCUPANCY

EFFECTIVE $ OCCUPANCY RENT 951 RATE 96.5%

in June 2018, up 2.6% from one through 2Q18, down 10 basis year prior points annually

2016 was a strong year for new deliveries in Greater Detroit, causing occupancy DETROIT METRO APARTMENT MARKET to fall slightly. Billion of dollars of new investment are being poured into the Central Business District (CBD), creating additional supply as well as jobs. 98% Occupancy & Ask Rent $1,000 Despite an increase in recent supply, demand for new units is causing strong rent growth with increases above the metro's historical and national averages. 96% $900 As of June 2018, average effective rent in the Detroit metro apartment market was $951 per month, up 2.6% from one year prior. By the end of 2018, average efective rent is projected to reach $963, equating to an annual increase of 94% $800 3.4%. Since 2012, efective rent in Metro Detroit has increased by 16.6%

Through the irst half of 2018, the metro's occupancy rate decreased 10 basis 92% $700 points annually to 96.5%. By the end of 2018, the market's occupancy rate is projected to decrease 50 basis points year over year, to a still healthy 95.9%. $799 $816 $837 $874 $910 $931 $963 90% $600 2012 2013 2014 2015 2016 2017 2018* *PROJECTED Rent Occupancy PALMER PARK PORTFOLIO

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HIGHER DEGREES & EDUCATION 140,830 CERTIFICATIONS 380+ students metrowide ofered at Wayne State University

More than 140,830 students attend colleges and universities in Greater Detroit, generating DETROIT, MI MSA signiicant apartment demand metro wide. HIGHER EDUCATION Oakland University (OU) enrolls more than 19,330 students, with attendance projected to rise Wayne State University 27,090 to 25,000 students by 2020. Oakland University has experienced a 19% increase in enrollment Macomb Community College 20,800 over the past decade. Oakland University 19,330 With an enrollment of approximately 27,090 students, Wayne State University is one of the Oakland Community College 17,420 largest universities in Michigan. The university is distinguished as a Carnegie-rated research institution, with post-graduate programs including a law school and medical school, and other Wayne County Community College District 14,300 specialty programs. Henry Ford Community College 13,270

Schoolcraft College 10,870

University of Michigan - Dearborn 9,340

University of Detroit - Mercy 5,110

Madonna University 3,300

Source: Michigan Association of College Registrars & Admissions Oicers; Individual College Websites

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TRANSPORTATION

DTW SMART AIRPORT 34.7m PASSENGERS 36,000 passengers served in 2017 average weekday ridership

The Detroit region ofers immediate access to Canada via the Ambassador DETROIT METROPOLITAN WAYNE COUNTY AIRPORT (DTW) Bridge and the Detroit-Windsor Tunnel. Major interstates include I-94, I-96, and I-75.

Public transit is provided by the Detroit Department of Transportation and Suburban Mobility Authority for Regional Transportation (SMART), ofering 44 ixed-route bus lines around Greater Detroit. The Detroit People Mover (DPM) is a light rail system operating on an elevated loop in Detroit’s CBD, and the QLINE light rail began its operations in May of 2017, running north through the city on Woodward Avenue.

Airports serving the Detroit region include Detroit Metropolitan Wayne County Airport (DTW), Oakland County International Airport, and Coleman A. Young International Airport. PALMER PARK PORTFOLIO

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TOTAL POPULATION MEDIAN AGE 2010 4,296,250 2010 38.4

2018* 4,326,960 2018* 40.6

2023* 4,340,844 2023* 41.2 Growth Rate (2018 - 2023) 0.3%

TOTAL HOUSEHOLDS MEDIAN HOME PRICE 2010 1,682,111 July - 2017 $142,000 2018* 1,696,864 July - 2018 $156,100

2023* 1,702,082 Growth Rate Y-o-Y 9.9% Growth Rate (2018 - 2023) 0.3%

MEDIAN INCOME RENT VS. OWN 2010 $52,901 Average Mortgage Payment** $955

2018* $55,385 Efective Rent $951

2023* $64,034 Diference $4 Growth Rate (2018 - 2023) 15.6% *Projected **30-yr ixed; 20% down; 4.65% interest rate; 1.75% property taxes; $1,000 annual homeowner's insurance

Sources: Berkadia; Tetrad; U.S. Census Bureau; U.S. Bureau of Labor Statistics; Fortune/Money.CNN.com; Forbes; Moody’s; Wikipedia; Axiometrics; HUDUser.gov; District Detroit; M-1 Rail; Detroit Chamber of Commerce; Oakland Daily Press; Oakland Business Review; Detroit Free Press; The Detroit News; Michigan Economic Development Corporation; Michigan International Trade Association; Metro Detroit Convention and Visitors Bureau; City of Detroit Partnership; Metromode. com; MetroAirport.com; Wayne State University; Crain’s Detroit Business; Farmington Hills-based Realcomp Ltd. II; The Wall Street Journal; Henry Ford Health System; dbusiness; USA Today.; Mortgage Calculator; Michigan Association of College Registrars & Admissions Oicers; Oakland University; University of Michigan–Dearborn; University of Detroit–Mercy; Madonna University; Detroit Curbed; GMAuthority.com; The Architects Newspaper; Benzinga.com; Zillow; DBusiness.

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ID PROPERTY UNITS 69 Little Mack Avenue 60 1 Encore at Ashby Preserve 75 70 Erin Park 52 2 Montclair at Partridge Creek 613 71 Lakeside Circle Senior 57 3 Orchard Brook 274 72 Riverland District 200 4 Philip Houze 106 73 Iron Ridge 75 5 Worthington Crossing 109 74 Royal Oak Mixed - Use 92 6 River Birch Bend 140 75 Big Beaver Road 96 7 Peninsula Ridge 138 76 Millennial Place 100 40 Total Lease-Up 1,455 77 Troy Town Center 850 8 Book Tower 95 78 Maple & Woodward 50 9 Corner, The 111 79 North Old Woodward & Bates Street 100 10 City Club 288 80 Woodward Avenue 50 11 Baltimore Station 161 81 Orchard Lake Road Mixed-Use / Keego Harbor 205 12 Blossom Ridge 189 82 Orchard Mews 200 13 Cedar Valley 86 83 Thomas Street 155 14 Ferndalehaus Lofts 90 84 Milford Place Project 100 15 Elton Park 151 85 Blossom Mills 137 41 16 400 North Main 91 86 21 Mile Road & Hayes Road 96 3 17 Hamilton, The 97 87 Sycamore Glen Phase II 90 12 18 Third and Grand 231 88 Worthington Crossing Phase II 58 13 39 23 19 Wellington Square 111 89 East Jefferson 213 85 20 Gabriel Houze 110 90 Eastern Market Gateway 400 21 Farwell, The 82 91 Leland, The 339 87 22 Beechcrest Phase II 68 92 Brewster - Douglass Site 850 5 88 86 23 Mosaic of Auburn Hills 81 93 Midtown West 175 6 Total Under Construction 2,042 94 Sugar Hill 84 71 2 24 Detroit Free Press Building, The 100 95 Van Dyke at Kercheval 76 81 96 Lee Plaza 250 25 Hastings Place 60 84 26 Hudson's Site 330 Total Prospective 8,795 38 27 Shapero Hall 314 22 78 37 1 28 United Artists Theater 148 LEGEND 79 77 75 80 36 29 One Eleven West 80 Lease-Up 76 72 82 30 University Meadows Phase II 88 Under Construction 31 Albert Kahn Building Redevelopment 200 32 Cass and York 133 Planned 69 33 Michigan State Fairgrounds 200 Prospective 16 74 34 Harrison Phase II, The 76 34 73 35 SoMa 240 35 70 36 McClure 140 83 14 37 Zen 286 63 33 61 38 Marquette, The 100 66 68 39 City 60 40 Abbey Ridge Apartment Homes Phase II 100 41 Encore at Deerhill Villas 92 67 65 42 Grand Jefferson 240 43 Brush Park Redevelopment 303 44 Eddystone Hotel Redevelopment 100 56 45 Russell Flats, The 82 46 Woodbridge Estates Phase II 80 19 53 47 Woodward at Midtown, The 110 31 Total Planned 3,662 11 48 Blenheim Building Redevelopment 100 18 62 49 Fine Arts Building Redevelopment 100 50 Gateway Center Building Redevelopment 200 32 51 Monroe Block 482 52 Orleans Landing Phase II 230 96 57 95 53 7198 Gratiot Avenue 100 54 American, The 163 94 55 Brewster Wheeler Recreation Center Redevelopment 150 PALMER PARK PORTFOLIO 59 60 56 Packard Plant Phase III 100 30 92 57 Sanctuary Homeless Housing, The 75 17 45 42 58 Temple Street 100 93 47 55 59 Wayne State University 248 46 43 54 44 90 60 Jefferson Avenue & Van Dyke Street 63 48 58 29 10 7 61 Benjamin O. Davis Veterans Village 50 49 27 62 West Grand Boulevard & Woodward Avenue 100 4 25 63 Michigan State Fairgrounds Phase II 300 28 8 89 64 91 26 64 Elton Park Phases II - IV 250 9 21 51 52 15 50 65 Inn At St. Johns Mixed-Use, The 234 20 66 Northville Downs 150 24 67 Village at Northville, The 190 68 Haggerty Square 200 5 mi Source: Yardi Matrix

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FORECASTED ID PROPERTY NAME ADDRESS CITY STATE ZIP STATUS UNITS SUBMARKET PERMIT DATE COMPLETION DATE START OF RENT-UP 1 Encore at Ashby Preserve 25879 Ashby Drive Harrison Township MI 48045 Lease Up 75 Harrison Township 12/01/2015 03/31/2019 06/14/2016 2 Montclair at Partridge Creek 17721 Montage West Clinton Township MI 48038 Lease Up 613 Clinton Township - west 09/08/2015 12/31/2018 05/30/2016 3 Orchard Brook 57163 Cypress Street Washington Township MI 48094 Lease Up 274 Washington\Richmond 06/01/2015 12/31/2018 03/01/2016 4 Philip Houze 415 Clifford Street Detroit MI 48226 Lease Up 106 Detroit - Downtown 08/29/2016 07/31/2018 04/18/2018 5 Worthington Crossing 103 Redwood Blvd White Lake MI 48383 Lease Up 109 Holly\White Lake 06/01/2017 07/31/2018 09/25/2017 6 River Birch Bend 45800 Beacon Drive Shelby Township MI 48315 Lease Up 140 Shelby Township 08/01/2015 07/31/2018 08/15/2016 7 Peninsula Ridge 24881 Redwood Blvd Brownstown MI 48134 Lease Up 138 Woodhaven\Brownstown 07/01/2015 07/31/2018 03/31/2016

TOTAL LEASE-UP 1,455

8 Book Tower 1265 Washington Blvd Detroit MI 48226 Under Construction 95 Detroit - Downtown 09/01/2017 12/31/2019 9 Corner, The 1620 Michigan Avenue Detroit MI 48216 Under Construction 111 Detroit - south 04/01/2017 08/31/2019 10 City Club 1539 Washington Blvd Detroit MI 48226 Under Construction 288 Detroit - Downtown 12/01/2017 06/30/2019 11 Baltimore Station 6408 Woodward Avenue Detroit MI 48202 Under Construction 161 Detroit - New Center 04/30/2017 03/31/2019 12 Blossom Ridge 3050 Dutton Road Rochester Hills MI 48306 Under Construction 189 Clarkston\Orion 09/15/2017 01/31/2019 13 Cedar Valley 1401 South Rochester Road Rochester MI 48307 Under Construction 86 Rochester Hills 11/01/2017 12/31/2018 14 Ferndalehaus Lofts 430 West Nine Mile Road Ferndale MI 48220 Under Construction 90 Royal Oak\Oak Park 10/24/2016 10/31/2018 15 Elton Park 8th Street & Plum Street Detroit MI 48216 Under Construction 151 Detroit - south 07/24/2017 09/30/2018 16 400 North Main 400 North Main Street Royal Oak MI 48067 Under Construction 91 Royal Oak\Oak Park 08/01/2017 09/30/2018 17 Hamilton, The 40 Davenport Street Detroit MI 48201 Under Construction 97 Detroit - Midtown 12/08/2017 09/30/2018 18 Third and Grand 2921 West Grand Blvd Detroit MI 48202 Under Construction 231 Detroit - New Center 10/01/2017 09/30/2018 19 Wellington Square 59 Seward Avenue Detroit MI 48202 Under Construction 111 Detroit - New Center 03/20/2017 09/30/2018 20 Gabriel Houze 305 Michigan Avenue Detroit MI 48226 Under Construction 110 Detroit - Downtown 07/03/2017 08/31/2018 21 Farwell, The 1249 Griswold Street Detroit MI 48226 Under Construction 82 Detroit - Downtown 08/02/2016 06/30/2018 22 Beechcrest Phase II 2799 Heron Hills Drive Wolverine Lake MI 48390 Under Construction 68 Wixom\Walled Lake 10/16/2017 06/30/2018 23 Mosaic of Auburn Hills 3331 Antigua Drive Auburn Hills MI 48326 Under Construction 81 Auburn Hills 03/14/2016 06/30/2018

TOTAL UNDER CONSTRUCTION 2,042

24 Detroit Free Press Building, The 321 West Lafayette Blvd Detroit MI 48226 Planned 100 Detroit - Downtown 25 Hastings Place 1468 Randolph Street Detroit MI 48226 Planned 60 Detroit - Downtown 26 Hudson's Site 1206 Woodward Avenue Detroit MI 48226 Planned 330 Detroit - Downtown 27 Shapero Hall 1010 Rivard Street Detroit MI 48207 Planned 314 Detroit - Downtown 28 United Artists Theater 150 Bagley Avenue Detroit MI 48226 Planned 148 Detroit - Downtown 29 One Eleven West 111 Henry Street Detroit MI 48201 Planned 80 Detroit - Midtown 30 University Meadows Phase II 4500 Trumbull Avenue Detroit MI 48208 Planned 88 Detroit - Midtown 31 Albert Kahn Building Redevelopment 7430 2nd Avenue Detroit MI 48202 Planned 200 Detroit - New Center 32 Cass and York 445 York Street Detroit MI 48202 Planned 133 Detroit - New Center 33 Michigan State Fairgrounds West State Fair Avenue & Woodward Avenue Detroit MI 48203 Planned 200 Detroit - north 34 Harrison Phase II, The 531 East Harrison Avenue Royal Oak MI 48067 Planned 76 Royal Oak\Oak Park 35 SoMa West 10 Mile Road & South Main Street Royal Oak MI 48067 Planned 240 Royal Oak\Oak Park 36 McClure 3142 McClure Drive Troy MI 48084 Planned 140 Troy 37 Zen 888 West Big Beaver Road Troy MI 48084 Planned 286 Troy 38 Marquette, The 300 East Huron Street Milford MI 48381 Planned 100 South Lyon\Milford 39 City 1468 North Rochester Road Rochester Hills MI 48307 Planned 60 Rochester Hills 40 Abbey Ridge Apartment Homes Phase II 211 East Market Street Oxford MI 48371 Planned 100 Clarkston\Orion 41 Encore at Deerhill Villas NEC Deerhill Drive & Dixie Hwy Clarkston MI 48346 Planned 92 Holly\White Lake 42 Grand Jefferson 7045 East Jefferson Avenue Detroit MI 48207 Planned 240 Detroit - Downtown 43 Brush Park Redevelopment Alfred Street & Brush Street Detroit MI 48201 Planned 303 Detroit - Midtown 44 Eddystone Hotel Redevelopment 110 Sproat Street Detroit MI 48201 Planned 100 Detroit - Midtown 45 Russell Flats, The 2801 Russell Street Detroit MI 48207 Planned 82 Detroit - Midtown 46 Woodbridge Estates Phase II 1200 Martin Luther King Jr Blvd Detroit MI 48201 Planned 80 Detroit - Midtown 47 Woodward at Midtown, The 3439 Woodward Avenue Detroit MI 48201 Planned 110 Detroit - Midtown

TOTAL PLANNED 3,662

48 Blenheim Building Redevelopment 2218 Park Avenue Detroit MI 48201 Prospective 100 Detroit - Downtown 49 Fine Arts Building Redevelopment 48 West Adams Avenue Detroit MI 48226 Prospective 100 Detroit - Downtown

Source: Yardi Matrix 72 PALMER PARK PORTFOLIO PARK PALMER

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FORECASTED ID PROPERTY NAME ADDRESS CITY STATE ZIP STATUS UNITS SUBMARKET PERMIT DATE COMPLETION DATE START OF RENT-UP 50 Gateway Center Building Redevelopment 1101 Washington Blvd Detroit MI 48226 Prospective 200 Detroit - Downtown 51 Monroe Block Farmer Street & Monroe Avenue Detroit MI 48226 Prospective 482 Detroit - Downtown 52 Orleans Landing Phase II Atwater Street & Orleans Street Detroit MI 48207 Prospective 230 Detroit - Downtown 53 7198 Gratiot Avenue 7198 Gratiot Avenue Detroit MI 48213 Prospective 100 Detroit - Midtown

54 American, The 408 Temple Street Detroit MI 48201 Prospective 163 Detroit - Midtown

55 Brewster Wheeler Recreation Center Redevelopment 2900 St. Antoine Street Detroit MI 48201 Prospective 150 Detroit - Midtown

56 Packard Plant Phase III 1580 East Grand Blvd Detroit MI 48211 Prospective 100 Detroit - Midtown 57 Sanctuary Homeless Housing, The Gratiot Avenue & Mack Avenue Detroit MI 48207 Prospective 75 Detroit - Midtown 58 Temple Street 640 Temple Street Detroit MI 48201 Prospective 100 Detroit - Midtown 59 Wayne State University West Canfield Street & Cass Avenue Detroit MI 48201 Prospective 248 Detroit - Midtown 60 Jefferson Avenue & Van Dyke Street 7903 East Jefferson Avenue Detroit MI 48214 Prospective 63 Detroit - east 61 Benjamin O. Davis Veterans Village 4777 Outer Drive East Detroit MI 48234 Prospective 50 Detroit - northeast 62 West Grand Boulevard & Woodward Avenue 2974 West Grand Blvd Detroit MI 48202 Prospective 100 Detroit - New Center 63 Michigan State Fairgrounds Phase II West State Fair Avenue & Woodward Avenue Detroit MI 48203 Prospective 300 Detroit - north 64 Elton Park Phases II - IV 8th Street & Plum Street Detroit MI 48216 Prospective 250 Detroit - south 65 Inn At St. Johns Mixed-Use, The 44045 Five Mile Road Plymouth MI 48170 Prospective 234 Canton\Plymouth 66 Northville Downs 301 South Center Street Northville MI 48167 Prospective 150 Canton\Plymouth 67 Village at Northville, The NWC 5 Mile Road & Beck Road Northville MI 48168 Prospective 190 Canton\Plymouth 68 Haggerty Square 19700 Haggerty Road Northville MI 48167 Prospective 200 Livonia\Redford 69 Little Mack Avenue 29000 Little Mack Avenue Saint Clair Shores MI 48081 Prospective 60 St. Claire Shores\Gross Pointe 70 Erin Park 23111 Dale Avenue Eastpointe MI 48021 Prospective 52 Roseville 71 Lakeside Circle Senior 14460 Lakeside Circle Sterling Heights MI 48313 Prospective 57 Sterling Heights 72 Riverland District 15 Mile Road & Ryan Road Sterling Heights MI 48310 Prospective 200 Sterling Heights 73 Iron Ridge 10 Mile Road & Bermuda Street Pleasant Ridge MI 48067 Prospective 75 Royal Oak\Oak Park 74 Royal Oak Mixed - Use West 6th Street & South Lafayette Avenue Royal Oak MI 48067 Prospective 92 Royal Oak\Oak Park 75 Big Beaver Road Bellingham Drive & East Big Beaver Road Troy MI 48083 Prospective 96 Troy 76 Millennial Place 1300 Livernois Road Troy MI 48083 Prospective 100 Troy 77 Troy Town Center East Big Beaver Road & Livernois Road Troy MI 48083 Prospective 850 Troy 78 Maple & Woodward 34952 Woodward Avenue Birmingham MI 48009 Prospective 50 Bloomfield Hills\Birmingham 79 North Old Woodward & Bates Street West Maple Road & North Old Woodward Street Birmingham MI 48012 Prospective 100 Bloomfield Hills\Birmingham 80 Woodward Avenue 34965 Woodward Avenue Birmingham MI 48009 Prospective 50 Bloomfield Hills\Birmingham 81 Orchard Lake Road Mixed-Use / Keego Harbor 3170 Orchard Lake Road Keego Harbor MI 48320 Prospective 205 Farmington Hills\West Bloomfield 82 Orchard Mews 7100 Orchard Lake Road West Bloomfield MI 48322 Prospective 200 Farmington Hills\West Bloomfield 83 Thomas Street Thomas Street & Warner Street Farmington MI 48336 Prospective 155 Farmington Hills\West Bloomfield 84 Milford Place Project 505 North Main Street Milford MI 48381 Prospective 100 South Lyon\Milford 85 Blossom Mills 333 East 2nd Street Rochester MI 48307 Prospective 137 Rochester Hills 86 21 Mile Road & Hayes Road 21 Mile Road & Hayes Road Shelby Carter Township MI 48044 Prospective 96 Shelby Township 87 Sycamore Glen Phase II 1 Carnegie Way Macomb MI 48042 Prospective 90 Chesterfield\New Baltimore 88 Worthington Crossing Phase II 103 Redwood Blvd White Lake MI 48383 Prospective 58 Holly\White Lake 89 East Jefferson 1475 East Jefferson Avenue Detroit MI 48207 Prospective 213 Detroit - Downtown 90 Eastern Market Gateway 2011 Russell Street Detroit MI 48207 Prospective 400 Detroit - Downtown 91 Leland, The 400 Bagley Avenue Detroit MI 48226 Prospective 339 Detroit - Downtown

92 Brewster - Douglass Site 2900 St. Antoine Street Detroit MI 48201 Prospective 850 Detroit - Midtown PALMER PARK PORTFOLIO 93 Midtown West 901 Selden Street Detroit MI 48201 Prospective 175 Detroit - Midtown 94 Sugar Hill Garfield Street & John R Street Detroit MI 48201 Prospective 84 Detroit - Midtown 95 Van Dyke at Kercheval 8003 Kercheval Avenue Detroit MI 48214 Prospective 76 Detroit - east 96 Lee Plaza 2240 West Grand Blvd Detroit MI 48208 Prospective 250 Detroit - New Center

TOTAL PROSPECTIVE 8,795

TOTAL DETROIT 15,954

© 2018 Berkadia Real Estate Advisors LLC. Berkadia® is a trademark of Berkadia Proprietary Holding LLC. Investment sales and real estate brokerage businesses are conducted exclusively by Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. In California, Berkadia Real Estate Advisors Inc. conducts business under CA Real Estate Broker License #01931050; Vincent B. Norris, CA BRE Lic. # 843890. Berkadia Commercial Mortgage LLC conducts business under CA Finance Lender & Broker Lic. #988-0701; and Berkadia Commercial Mortgage Inc. under CA Real Estate Broker Lic. #01874116. For state licensing details visit: http://www.berkadia.com/legal/licensing.aspx Source: Yardi Matrix 73 1

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The material contained in this document is confidential, furnished solely for the purpose of considering investment in the property described therein and is not to be copied and/or used for any purpose or made available to any other person without the express written consent of Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. In accepting this, the recipient agrees to keep all material contained herein confidential.

This information package has been prepared to provide summary information to prospective purchasers and to establish a preliminary level of interest in the property described herein. It does not, however, purport to present all material information regarding the subject property, and it is not a substitute for a thorough due diligence investigation. In particular, Berkadia Real Estate Advisors LLC, Berkadia Real Estate Advisors Inc. and Seller have not made any investigation of the actual property, the tenants, the operating history, financial reports, leases, square footage, age or any other aspect of the property, including but not limited to any potential environmental problems that may exist and make no warranty or representation whatsoever concerning these issues. The information contained in this information package has been obtained from sources we believe to be reliable; however, Berkadia Real Estate Advisors LLC, Berkadia Real Estate Advisors Inc. and Seller have not conducted any investigation regarding these matters and make no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. Any pro formas, projections, opinions, assumptions or PalmerPark4.BerkadiaREA.com estimates used are for example only and do not necessarily represent the current or future performance of the property.

Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. and Seller strongly recommend that prospective purchasers conduct an in-depth investigation of every physical and financial aspect of the property to determine if the property meets their needs and expectations. We also recommend MICHIGAN OFFICE that prospective purchasers consult with their tax, financial and legal advisors on any matter that may affect their decision to purchase the property and the 28411 Northwestern Highway, Suite 300 subsequent consequences of ownership. Southfield, MI 48034 All parties are advised that in any property the presence of certain kinds of molds, funguses, or other organisms may adversely affect the property and the 248.646.7701 | Fax: 248.646.0320 health of some individuals. Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. recommend, if prospective buyers have questions or concerns regarding this issue, that prospective buyers conduct further inspections by a qualified professional.

The Seller retains the right to withdraw, modify or cancel this offer to sell at any time and without any notice or obligation. Any sale is subject to the sole and unrestricted approval of Seller, and Seller shall be under no obligation to any party until such time as Seller and any other necessary parties have executed a contract of sale containing terms and conditions acceptable to Seller and such obligations of Seller shall only be those in such contract of sale.

For more information on these and other Berkadia© exclusive listings, please visit our website at Berkadia.com All information contained herein is from sources deemed to be reliable; however, it is not guaranteed. Printed in the USA. All rights reserved. Copyright 2018 © by Berkadia Proprietary Holding LLC Berkadia© is a trademark of Berkadia Proprietary Holding LLC Investment sales and real estate brokerage businesses are conducted exclusively by Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. Commercial mortgage loan origination and servicing businesses are conducted exclusively by Berkadia Commercial Mortgage LLC and Berkadia Commercial Mortgage Inc. In California, Berkadia Real Estate Advisors Inc. conducts business under CA Real Estate Broker License #01931050; Vincent B. Norris, CA BRE Lic. #843890. Berkadia Commercial Mortgage LLC conducts business under CA Finance Lender & Broker Lic. #988-0701; and Berkadia Commercial Mortgage Inc. under CA Real Estate Broker Lic. #01874116. This proposal is not intended to solicit commercial mortgage loan brokerage business in Nevada. For state licensing details visit: http://www.berkadia.com/legal/licensing.aspx

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