Appraisal Report

CBRE VALUATION & ADVISORY SERVICES

APPRAISAL

REPORT

PROPOSED EMERY VILLAGE APARTMENTS 174 EMERY AVENUE NORTHWEST CONCORD, NORTH CAROLINA 28104 CBRE FILE NO. 21-341SE-4034-1

EAGLE I PROPERTY GROUP

VALUATION & ADVISORY SERVICES

201 South College Street, Suite 1700 Charlotte, NC 28244

T (704) 376-7979 F (704) 331-1259

www.cbre.com

Date of Report: May 26, 2021

Mr. Sushanth Charabuddi EAGLE I PROPERTY GROUP One Boston Place, Suite 2600 Boston, Massachusetts 02108

RE: Appraisal of: Proposed Emery Village Apartments 174 Emery Avenue Northwest Concord, Cabarrus County, North Carolina 28104 CBRE, Inc. File No. 21-341SE-4034-1

Dear Mr. Charabuddi: At your request and authorization, CBRE, Inc. has prepared an appraisal of the market value of the referenced property. Our analysis is presented in the following Appraisal Report. The subject is an under construction 132-unit multi-family garden property located at 174 Emery Avenue Northwest in Concord, North Carolina. The property will consist of 4, three-story apartment buildings along with a clubhouse and pumphouse. The improvements will be situated on an 8.612-acre site. Site work commenced in December 2019 but was placed on hold due to Covid-19. Site work resumed in April 2021 and as of the date of our inspection the following work has been complete: asphalt roads and curbs, foundations for two of the four buildings, and 1st floor framing on one residential building. The first units are expected to be delivered in December 2021 with final completion slated for April 2022. The subject is under construction and is not stabilized, therefore, a prospective value upon completion of construction and upon stabilization have been estimated. Based on the analysis contained in the following report, the market value of the subject is concluded as follows:

MARKET VALUE CONCLUSION Appraisal Premise Interest Appraised Date of Value Value Conclusion As Is - Market Value Fee Simple Estate May 20, 2021 $8,100,000 Prospective As Complete - Market Value Leased Fee Interest April 20, 2022 $19,100,000 Prospective As Stabilized - Market Value Leased Fee Interest September 20, 2022 $19,500,000 Compiled by CBRE

The report, in its entirety, including all assumptions and limiting conditions, is an integral part of, and inseparable from, this letter. The following appraisal sets forth the most pertinent data gathered, the techniques employed, and the reasoning leading to the opinion of value. The analyses, opinions and conclusions were developed based on, and this report has been prepared in conformance with, the guidelines and recommendations set forth in the Uniform Standards of Professional Appraisal Practice (USPAP), and the requirements of the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. It also conforms to Title XI Regulations and the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) updated in 1994 and further updated by the Interagency Appraisal and Evaluation Guidelines promulgated in 2010. The intended use and user of our report are specifically identified in our report as agreed upon in our contract for services and/or reliance language found in the report. As a condition to being granted the status of an intended user, any intended user who has not entered into a written agreement with CBRE in connection with its use of our report agrees to be bound by the terms and conditions of the agreement between CBRE and the client who ordered the report. No other use or user of the report is permitted by any other party for any other purpose. Dissemination of this report by any party to any non-intended users does not extend reliance to any such party, and CBRE will not be responsible for any unauthorized use of or reliance upon the report, its conclusions or contents (or any portion thereof). It has been a pleasure to assist you in this assignment. If you have any questions concerning the analysis, or if CBRE can be of further service, please contact us.

Respectfully submitted,

CBRE - VALUATION & ADVISORY SERVICES

Benjamin Tedder, MAI Don Poore, MAI Director Managing Director Certified General – A6351 Certified General – A1084

Phone: (704) 331-1259 Phone: (704) 331-1259 Email: [email protected] Email: [email protected]

Andrew J. Loepprich Valuation Associate North Carolina Registered Trainee T6243

Phone: (704) 264-3648 Email: [email protected]

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Certification

We certify to the best of our knowledge and belief: 1. The statements of fact contained in this report are true and correct. 2. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are our personal, impartial and unbiased professional analyses, opinions, and conclusions. 3. We have no present or prospective interest in or bias with respect to the property that is the subject of this report and have no personal interest in or bias with respect to the parties involved with this assignment. 4. Our engagement in this assignment was not contingent upon developing or reporting predetermined results. 5. Our compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. 6. This appraisal assignment was not based upon a requested minimum valuation, a specific valuation, or the approval of a loan. 7. Our analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice, as well as the requirements of the State of North Carolina. 8. The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. 9. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. 10. As of the date of this report, Benjamin Tedder, MAI and Don Poore, MAI have completed the continuing education program for Designated Members of the Appraisal Institute. 11. As of the date of this report, Andrew J. Loepprich has completed the Standards and Ethics Education Requirements for Candidates/Practicing Affiliates of the Appraisal Institute. 12. Benjamin Tedder, MAI and Andrew J. Loepprich have and Don Poore, MAI has not made a personal inspection of the property that is the subject of this report. 13. Andrew J. Loepprich, North Carolina Registered Trainee #6243, provided significant professional appraisal assistance in the preparation of this report. He developed market and neighborhood descriptions, and collected and analyzed subject information necessary for the development of the valuation approaches and report narrative. All work was supervised and reviewed by Benjamin D. Tedder, MAI. 14. Valuation & Advisory Services operates as an independent economic entity within CBRE, Inc. Although employees of other CBRE, Inc. divisions may be contacted as a part of our routine market research investigations, absolute client confidentiality and privacy were maintained at all times with regard to this assignment without conflict of interest. 15. Benjamin Tedder, MAI, Don Poore, MAI, and Andrew J. Loepprich have provided services, as an appraiser most recently in June 2020, regarding the property that is the subject of this report within the three-year period immediately preceding agreement to perform this assignment.

Benjamin Tedder, MAI Don Poore, MAI Certified General – A6351 Certified General – A1084

Andrew J. Loepprich Registered Trainee – T6243

Subject Photographs

Subject

Aerial View

iii

View of Site View of Site

View of Site Street Frontage iv

Executive Summary

Property Name Emery Village Apartments Location 174 Emery Avenue Northwest Concord, Cabarrus County, NC 28104

Parcel Number(s) 56118939950000

Client Eagle I Property Group

Client Reference Number Highest and Best Use As If Vacant Multifamily As Improved Multifamily Property Rights Appraised Fee Simple Estate Date of Inspection May 20, 2021 Estimated Exposure Time 3 - 6 Months Estimated Marketing Time 3 - 6 Months Primary Land Area 8.61 AC 375,139 SF Zoning RC, Residential Compact

Improvements Comments Property Type Multifamily (Multi-Family Garden) Number of Residential Buildings 4 Number of Residential Stories 3 Gross Building Area 113,776 SF Net Rentable Area 104,904 SF Number of Units 132 Average Unit Size 795 SF Year Built 2022 Effective Age 0 Years Remaining Economic Life 50 Years Condition Excellent Buyer Profile Institutional Financial Indicators Estimated Occupancy at Completion 48.5% Stabilized Occupancy 95.0% Stabilized Credit Loss 1.0% Estimated Lease-up Period 5 Months Overall Capitalization Rate 4.75%

Pro Forma Un-Trended Pro Forma Market Value Total Per Unit Effective Gross Income $1,724,371 $13,063 Operating Expenses $806,378 $6,109 Expense Ratio 46.76% Net Operating Income $917,993 $6,954

VALUATION Total Per Unit Land Value $1,250,000 $9,470

Market Value As Complete On April 20, 2022 Cost Approach $19,100,000 $144,697 Sales Comparison Approach $19,400,000 $146,970 Income Capitalization Approach $19,100,000 $144,697

Market Value As Stabilized On September 20, 2022 Cost Approach $19,500,000 $147,727 Sales Comparison Approach $19,800,000 $150,000 Income Capitalization Approach $19,500,000 $147,727

Insurable Value $12,200,000 $92,424

CONCLUDED MARKET VALUE Appraisal Premise Interest AppraisedDate of Value Value As Is - Market Value Fee Simple EstateMay 20, 2021 $8,100,000 Prospective As Complete - Market Value Leased Fee Interest April 20, 2022 $19,100,000 Prospective As Stabilized - Market Value Leased Fee Interest September 20, 2022 $19,500,000 Compiled by CBRE

STRENGTHS, WEAKNESSES, OPPORTUNITIES AND THREATS (SWOT) Strengths/ Opportunities  The subject will represent a class “A” community which will feature high-end finishes and an extensive array of amenities.  The subject, which is expected to be complete in 2022, will require minimal capital to maintain its competitive position in the market over the near term.  The subject is proximate to major area employers such as Atrium Health Cabarrus.  The subject is proximate to major grocers including Food Lion and Harris Teeter and is proximate to Carolina Mall.  The subject has excellent access to I-85 which connects the subject with the greater region.  The subject is proximate to the Charlotte Central Business District, which features the highest concentration of office development in the Carolinas.  Investor demand for multifamily remains strong. Weaknesses/ Threats  Competition for tenants is high in the subject’s immediate neighborhood with numerous properties operating within a 3.0-mile radius of the subject.  Median household income within a 3-mile radius of the subject is considered below average for the MSA.  The overall market and submarket have significant supply side pressure from the new product entering the market and will likely impact existing properties as lease-up occurs.  Increased uncertainty and risk associated with COVID-19 (see discussion below).  Economic conditions around the world (Coronavirus, Oil, “Brexit”, etc.) could cause potential disruptions in the investment markets coupled with actions from the Federal Reserve and potential rate changes.

COVID-19 WARNING STATEMENT- MARKET UNCERTAINTY CLAUSE The outbreak of the Novel Coronavirus (COVID-19), declared by the World Health Organisation as a “Global Pandemic” on the 11th March 2020, has impacted many aspects of daily life and the global economy – with some real estate markets experiencing significantly lower levels of transactional activity and liquidity. As of the valuation date, in the case of the subject property, there is a shortage of market evidence for comparison purposes, to inform opinions of value.

Our valuation of the property is therefore reported as being subject to ‘material valuation uncertainty’. Consequently, less certainty – and a higher degree of caution – should be attached to our valuation than would normally be the case.

For the avoidance of doubt, the inclusion of the ‘material valuation uncertainty’ declaration above does not mean that the valuation cannot be relied upon. Rather, the declaration has been included to ensure transparency of the fact that – in the current extraordinary circumstances – less certainty can be attached to the valuation than would otherwise be the case. The material uncertainty clause is to serve as a precaution and does not invalidate the valuation.

Values may change more rapidly and significantly than during standard market conditions. Given the unknown future impact that COVID-19 might have on the real estate market and the difficulty in differentiating between short term impacts and long-term structural changes, we recommend that you keep the valuation contained within this report under frequent review.

EXTRAORDINARY ASSUMPTIONS An extraordinary assumption is defined as “an assignment-specific assumption as of the effective date regarding uncertain information used in an analysis which, if found to be false, could alter the appraiser’s opinions or conclusions.” 1

 The “as complete” appraisal assumes the development is fully entitled and permitted for the construction of the improvements as specifically described herein and that the project will be completed on time and within budget and in accordance with the plans and assumed good level of specifications commensurate with other new developments in the surrounding area.  The appraisal includes a prospective opinion of market value at the completion and stabilization of the property. As such, the prospective values are based on forward-looking projections that are based on current market indications and typical underwriting witnessed by market participants as of the effective date. It is noted that the COVID-19 pandemic is causing heightened uncertainty in both local and global market conditions. Any significant change in future market conditions that are inconsistent with the assumptions made herein could impact the opinions of market value.  An “as is” value is reported based on the remaining cost to complete the project. An extraordinary assumption assumes the information provided by the developer accurately reflects the remaining cost or the “as is” value conclusion would be misstated.  The use of these extraordinary assumptions may have affected the assignment results.

1 The Appraisal Foundation, USPAP, 2020-2021

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HYPOTHETICAL CONDITIONS A hypothetical condition is defined as “a condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results but is used for the purposes of analysis.” 2

 None noted

OWNERSHIP AND PROPERTY HISTORY

OWNERSHIP SUMMARY Item Current Current Ownership Owner: Emery Village Apartments, LLC Seller : New South Enterprises, LLC Purchase Price: $0 - Re Title Transaction Date: Jan 28, 2020 Sale in Last 3 Years?: Yes Legal Reference: 13971 / 0270 County/Locality Name: Cabarrus Pending Sale Under Contract: No Compiled by CBRE

The subject is currently vested in the name of Emery Village Apartments, LLC. The subject was transferred in the above transaction from New South Enterprises, LLC for no fee for retitling purposes of the property. Additionally, prior to this transaction, the title was transferred from New South Enterprises, LLC to Eagle I Property Group LLC for a similar reason. Prior to these two transactions, the subject originally consisted of six parcels within Cabarrus County: 5611-89- 2931, 5611-89-5976, 5612-80-7153, 5611-89-0642, 5611-89-7928, and 5612-80-9010. The subject parcels were purchased by New South Enterprises, LLC for $675,000 or $5,114 per proposed unit on March 23, 2018 as recorded in Cabarrus County Deed Book 12929 / Page 0252. The six parcels were then combined through the process of assemblage into the current tax parcel: 5611-89-3995. At the time of original sale, the site was primarily wooded. The “as is” value contained herein is above the most recent purchase price due to the improved market conditions since the transaction occurred and impact of assemblage along with the site and construction work completed as of the date of value.

According to county records no additional transactions have occurred during the prior three-year period. Additionally, the subject is not known as being under contract or being marketed for sale.

2 The Appraisal Foundation, USPAP, 2020-2021

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EXPOSURE/MARKETING TIME Current appraisal guidelines require an estimate of a reasonable time period in which the subject could be brought to market and sold. This reasonable time frame can either be examined historically or prospectively. In a historical analysis, this is referred to as exposure time. Exposure time always precedes the date of value, with the underlying premise being the time a property would have been on the market prior to the date of value, such that it would sell at its appraised value as of the date of value. On a prospective basis, the term marketing time is most often used. The exposure/marketing time is a function of price, time, and use. It is not an isolated estimate of time alone. In consideration of these factors, we have analyzed the following:

 exposure periods for comparable sales used in this appraisal;  exposure/marketing time information from the CBRE, Inc. National Investor Survey and the PwC Real Estate Investor Survey; and  the opinions of market participants. Our valuation is predicated on a buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. The COVID-19 pandemic has resulted in logistical constraints on property transactions such as inability to travel for due diligence/tours and closing of municipal agencies for closing/recording sale transactions. In addition, some buyers and sellers have paused or postponed transacting amid the pandemic. As of the effective date of this appraisal, this has extended the reasonable time period in which the subject could be brought to market and sold. In light of the COVID-19 pandemic and prevailing market conditions, we would anticipate a longer marketing period relative to the exposure period. The following tables presents information derived from various sources and our conclusion.

EXPOSURE/MARKETING TIME DATA Exposure/Mktg. (Months) Investment Type Range Average PwC Apartment National Data 1.0 - 12.0 5.3 Local Market Professionals 1.0 - 6.0 3.0 CBRE Exposure Time Estimate 3 - 6 Months CBRE Marketing Period Estimate 3 - 6 Months Various Sources Compiled by CBRE

Table of Contents

Certification ...... i Subject Photographs ...... iii Executive Summary ...... v Table of Contents ...... x Scope of Work ...... 1 Area Analysis ...... 5 Neighborhood Analysis ...... 9 Site Analysis ...... 14 Improvements Analysis ...... 18 Zoning ...... 25 Tax and Assessment Data ...... 26 Market Analysis ...... 28 Highest and Best Use ...... 52 Land Value ...... 54 Cost Approach ...... 59 Insurable Replacement Cost ...... 64 Sales Comparison Approach ...... 66 Income Capitalization Approach ...... 72 Reconciliation of Value ...... 102 Assumptions and Limiting Conditions ...... 103 ADDENDA A Land Sale Data Sheets B Improved Sale Data Sheets C Rent Comparable Data Sheets D Operating Data E Legal Description F Client Contract Information G Qualifications

Scope of Work

This Appraisal Report is intended to comply with the reporting requirements set forth under Standards Rule 2 of USPAP. The scope of the assignment relates to the extent and manner in which research is conducted, data is gathered, and analysis is applied.

INTENDED USE OF REPORT The appraisal is to be used for internal decision marking purposes and no other use is permitted.

CLIENT The client is Eagle I Property Group.

INTENDED USER OF REPORT This appraisal is to be used by Eagle I Property Group. No other user(s) may rely on our report unless as specifically indicated in this report.

Intended Users - the intended user is the person (or entity) who the appraiser intends will use the results of the appraisal. The client may provide the appraiser with information about other potential users of the appraisal, but the appraiser ultimately determines who the appropriate users are given the appraisal problem to be solved. Identifying the intended users is necessary so that the appraiser can report the opinions and conclusions developed in the appraisal in a manner that is clear and understandable to the intended users. Parties who receive or might receive a copy of the appraisal are not necessarily intended users. The appraiser’s responsibility is to the intended users identified in the report, not to all readers of the appraisal report. 3

PURPOSE OF THE APPRAISAL The purpose of this appraisal is to estimate the market value of the subject property.

DEFINITION OF VALUE The current economic definition of market value agreed upon by agencies that regulate federal financial institutions in the U.S. (and used herein) is as follows:

The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby:

1. buyer and seller are typically motivated;

3 Appraisal Institute, The Appraisal of Real Estate, 14th ed. (Chicago: Appraisal Institute, 2013), 50.

2. both parties are well informed or well advised, and acting in what they consider their own best interests; 3. a reasonable time is allowed for exposure in the open market; 4. payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and 5. the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. 4

INTEREST APPRAISED The values estimated represent the fee simple estate for the land and leased fee interest for the improvements as defined below:

Fee Simple Estate - Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power and escheat. 5 Leased Fee Interest - The ownership interest held by the lessor, which includes the right to receive the contract rent specified in the lease plus the reversionary right when the lease expires6 Extent to Which the Property is Identified The property is identified through the following sources:

 postal address  assessor’s records  legal description Extent to Which the Property is Inspected The extent of the inspection on May 20, 2021 included the following:

 the proposed subject site

 the surrounding neighborhood and environs

Type and Extent of the Data Researched CBRE reviewed the following:

 applicable tax data  zoning requirements  flood zone status  demographics  income and expense data  comparable data

4 Interagency Appraisal and Evaluation Guidelines; December 10, 2010, Federal Register, Volume 75 Number 237, Page 77472.

5 Dictionary of Real Estate Appraisal, 78.

6 Dictionary of Real Estate Appraisal, 128.

Type and Extent of Analysis Applied CBRE, Inc. analyzed the data gathered through the use of appropriate and accepted appraisal methodology to arrive at a probable value indication via each applicable approach to value. The steps required to complete each approach are discussed in the methodology section.

Data Resources Utilized in the Analysis

DATA SOURCES Item: Source(s): Site Data Size Survey Improved Data Building Area Developer's Proforma No. Bldgs. Site Plan Parking Spaces Site Plan Year Built/Developed Developer's Projection Economic Data Deferred Maintenance: N/A Building Costs: Developer's Construction Budget Income Data: Developer's Operating Budget Expense Data: Developer's Operating Budget Other Flood Map FEMA Compiled by CBRE

APPRAISAL METHODOLOGY In appraisal practice, an approach to value is included or omitted based on its applicability to the property type being valued and the quality and quantity of information available.

Cost Approach The cost approach is based on the proposition that the informed purchaser would pay no more for the subject than the cost to produce a substitute property with equivalent utility. This approach is particularly applicable when the property being appraised involves relatively new improvements that represent the highest and best use of the land, or when it is improved with relatively unique or specialized improvements for which there exist few sales or leases of comparable properties.

Sales Comparison Approach The sales comparison approach utilizes sales of comparable properties, adjusted for differences, to indicate a value for the subject. Valuation is typically accomplished using physical units of comparison such as price per square foot, price per unit, price per floor, etc., or economic units of comparison such as gross rent multiplier. Adjustments are applied to the physical units of comparison derived from the comparable sale. The unit of comparison chosen for the subject is then used to yield a total value. Economic units of comparison are not adjusted, but rather analyzed as to relevant differences, with the final estimate derived based on the general comparisons.

Income Capitalization Approach The income capitalization approach reflects the subject’s income-producing capabilities. This approach is based on the assumption that value is created by the expectation of benefits to be derived in the future. Specifically estimated is the amount an investor would be willing to pay to receive an income stream plus reversion value from a property over a period of time. The two common valuation techniques associated with the income capitalization approach are direct capitalization and the discounted cash flow (DCF) analysis.

Methodology Applicable to the Subject In valuing the subject, all three approaches are applicable and have been utilized.

Area Analysis

The subject is located in the Charlotte-Concord-Gastonia, NC-SC Metropolitan Statistical Area. Key information about the area is provided in the following tables.

POPULATION

The area has a population of 2,685,444 and a AREA POPULATION BY AGE median age of 38, with the largest population 400,000 group in the 30-39 age range and the smallest 300,000 population in 80+ age range. 200,000 100,000

0 Source: Esri 0‐910‐19 20‐29 30‐39 40‐49 50‐59 60‐69 70‐79 80+

Population has increased by 441,484 since POPULATION BY YEAR 3,500,000 2010, reflecting an annual increase of 1.8%. 3,000,000 2,500,000 2,920,023 Population is projected to increase by an 2,685,444 2,000,000 2,243,960 additional 234,579 by 2025, reflecting 1.7% 1,500,000 annual population growth. 1,000,000 500,000 0 Source: Esri 2010 2020 2025

INCOME

The area features an average household MEDIAN INCOME BY YEAR income of $91,129 and a median household $80,000

$60,000 $68,952 income of $63,483. Over the next five years, $63,483 median household income is expected to $40,000

increase by 8.6%, or $1,094 per annum. $20,000

$0 Source: Esri 2020 2025

EDUCATION A total of 36.4% of individuals over the age of POPULATION BY DEGREE 24 have a college degree, with 24.4% holding

a bachelor's degree and 12.0% holding a Bachelor's Degree 24.4% graduate degree. Graduate Degree 12.0% Other 63.6%

Source: Esri

EMPLOYMENT

Health Care/Social Assistance

Manufacturing

Retail Trade

Finance/Insurance

Prof/Scientific/Tech Services

Educational Services

Construction

Accommodation/Food Services

Transportation/Warehousing

Other Services (excl Publ Adm)

0% 2% 4% 6% 8% 10% 12% 14% Source: Esri

The area includes a total of 1,251,360 employees and has a 11.4% unemployment rate. The top three industries within the area are Health Care/Social Assistance, Manufacturing and Retail Trade, which represent a combined total of 35% of the population.

Local Outlook The area analysis utilizes data from the back half of 2020 and the impact of Covid-19 is clear in the unemployment rate and area income. The latest data will full April 2021 unemployment numbers for North Carolina continued a steady down trend since September, which had an unemployment rate of 7.3%. August was down from 8.5% (July), and up from 7.5% in June due to some expiration of government relief programs for small business, but down overall from the

Proposed Emery Village Apartments, Concord, North Carolina © 2021 CBRE, Inc. Area Analysis peak of 12.8% in May 2020 and 12.9% rate in April 2020 when the nationwide shutdowns were in full effect. The next few months of employment data will begin to show what type and shape of recovery the economy will have in the near term as additional government programs run off and as additional seasonal employment changes occur. Additionally, discussions for another round of relief to Americans is being discussed in congress and will have an impact on employment depending on the nature of the package in regard to individuals, local businesses, and local governments.

All non-essential travel and businesses were closed in North Carolina in early April 2020 and on May 8 2020 North Carolina began to reopen the local economy as Phase 1. The opening included personal-care services like hair salons and restaurants could offer drive-through, takeout and delivery. Public places such as beaches and parks opened but with social distancing guidelines in place and the largest group of people gathering in public settings is limited. Public places such as beaches and parks were open but with social distancing guidelines in place and the largest group of people gathering in public settings is limited. On May 22, 2020 North Carolina began Phase 2 of the reopening which included restaurants, pools for residents only, bars, and nail salons of the like but with heavy restrictions. Restrictions were lifted more and more as 2020 continued and On Friday October 2, 2020, instead of transitioning to Phase 3, Governor Cooper implemented a Phase 2.5 that included some capacity at Bank of America Stadium for Carolina Panthers games, bar can reopen but only serve beer in outdoor sections of the restaurant, indoor venues such as museums with limited capacity, expansion of attendees for outdoor events, and additional capacity for restaurants and the like. This Phase 2.5 was extended on a rolling basis as Covid-19 vaccine was rolling out across the country and as more individuals got vaccines restrictions were slowly lifted more in terms of occupancies and public restrictions. Just recently on Friday May 14, 2021, Governor Cooper removed the mask mandate and all NC restrictions related to Covid-19 for individuals who are vaccinated. Businesses and the economy will still take time to be back to normal levels as it will take time for individuals to feel comfortable and confident to resume normal life but the Summer is expected to be a very positive time on a local level.

2021 National Outlook The economy hit a soft patch during the end of 2020 as rampant COVID-19 spread—the spread was thrice the summer wave—caused economic conditions to deteriorate. Predictably, the hospitality sector was hardest hit as cold weather ruined the appetite for outdoor dining and

Proposed Emery Village Apartments, Concord, North Carolina © 2021 CBRE, Inc. Area Analysis many states implemented strict social distancing measures. Hospitality employment declined significantly in December, although most sectors expanded headcount, causing headline employment numbers to weaken only slightly. Subdued activity should continue during the winter months and the pace of first quarter growth should be just 1.3% per annum before averaging nearly 7% during the final three quarters of the year.

Positive tailwinds will support growth this year. Higher-paying occupations have generally withstood layoffs and these workers have substituted spending on services, like leisure travel, for consumer goods or have increased their savings rate to record levels. This suggests strong consumption ahead, which could expand by 5% this year. Higher-income households have also harnessed historically low interest rates to drive a boom in home sales, particularly in suburban locales. New housing starts are now trending back to pre-Global Financial Crisis (GFC) levels and residential investment is expected to be one of the fastest growing components of the economy in 2021.

The Biden administration will usher in a very aggressive fiscal stimulus package for 2021. President Biden is pushing the $1.9 trillion American Rescue Plan (ARP), which would expand direct payments to households and extend unemployment benefits and an eviction moratorium. Although not all aspects of the plan will become law, such as nationwide $15 per hour minimum wage, the overall value of the package should be close to the $1.9 trillion target.

The most important stimulus tool is the vaccines now being deployed. They will not prevent a difficult winter but should allow for some normalization of activity by the latter half of 2021. The outlook will be uneven across sectors with technology and goods-production seeing a quicker path to recovery whilst the travel and hospitality sector will operate below capacity for some time. It is likely that H2 2021 could see a boom in leisure travel as many households wish to deploy their savings on a much-needed vacation.

Neighborhood Analysis

LOCATION The subject is in the city of Concord and is considered a suburban location. The city of Concord is situated in central Cabarrus county. The subject is about 3.7-miles north of Concord and 24- miles northeast of the Charlotte Central Business District. The neighborhood characteristics are summarized below.

NEIGHBORHOOD CHARACTERISTICS Location: Suburban Built-Up: 25% - 75% Life Cycle Stage Growth Change in Present Land Use: Not Likely

Neighborhood Boundaries North: Winecoff School Road South: Davidson Highway East: Concord Parkway N West: Winecoff School Road Source: CBRE

NEIGHBORHOOD HOUSING TRENDS The local neighborhood housing trends and home prices are summarized as follows:

NEIGHBORHOOD HOUSING TRENDS Property Values: Stable Owner Occupied %: 52.1% Demand/Supply: In Balance Marketing Time: 3 - 6 Months Least Typical Range Typical Range Median Value Housing Prices: $1,000,000 - $100,000 - $149,999 $177,352 $1,499,999 Year Built: 2010 or Later 2000-2009 1983 Multiple Sources Compiled by CBRE

LAND USE The immediate area, there has been limited development in recent years. Majority of construction work has centered around Interstate 85 development, including on and off access just east of the subject at Concord Parkway North. Development centers around Concord Parkway North will continue to expand from the road’s access to Interstate 85. There is available land suitable for development around the subject area. The local land use patterns are summarized as follows:

NEIGHBORHOOD LAND USE Present Land Use % Single Unit Residential: 30% Industrial: 15% Multi-Housing: 15% Agricultural: 10% Commercial: 20% Other: 10%

Commercial Land Use Patterns Primary Commercial Thoroughfares: I-85, Concord Parkway N, Davidson Highway Major Commercial Developments: Food Lion, Harris Teeter, Shoppes at Davidson Corner, Carolina Mall, Atrium Health Cabarrus, Home Depot, Dollar General

Source: CBRE

DEMOGRAPHICS Selected neighborhood demographics in 1-, 3- and 5-mile radius from the subject are shown in the following table:

SELECTED NEIGHBORHOOD DEMOGRAPHICS

Charlotte-Concord- 174 Emery Avenue Northwest Gastonia, NC-SC 1 Mile Radius 3 Mile Radius 5 Mile Radius Concord, NC 28104 Metropolitan Statistical Area

Population 2025 Total Population 7,050 49,667 107,893 2,920,023 2020 Total Population 6,559 46,183 99,601 2,685,444 2010 Total Population 5,850 40,662 87,732 2,243,960 2000 Total Population 4,797 35,665 78,934 1,742,765 Annual Growth 2020 - 2025 1.45% 1.47% 1.61% 1.69% Annual Growth 2010 - 2020 1.15% 1.28% 1.28% 1.81% Annual Growth 2000 - 2010 2.00% 1.32% 1.06% 2.56% Households 2025 Total Households 2,986 19,630 41,972 1,118,881 2020 Total Households 2,778 18,227 38,740 1,028,266 2010 Total Households 2,465 15,838 33,905 858,500 2000 Total Households 2,108 14,030 30,765 667,966 Annual Growth 2020 - 2025 1.45% 1.49% 1.62% 1.70% Annual Growth 2010 - 2020 1.20% 1.41% 1.34% 1.82% Annual Growth 2000 - 2010 1.58% 1.22% 0.98% 2.54% Income 2020 Median Household Income $51,757 $54,311 $54,819 $63,483 2020 Average Household Income $64,997 $75,442 $76,373 $91,129 2020 Per Capita Income $27,387 $29,534 $29,734 $34,978 2020 Pop 25+ College Graduates 834 8,036 17,190 663,813 Age 25+ Percent College Graduates - 2020 19.5% 26.1% 25.5% 36.4% Source: ESRI

CONCLUSION The overall characteristics of the neighborhood are considered conducive to multifamily housing demand. The neighborhood maintains an adequate mix of residential and commercial properties with support developments including shopping centers, franchise restaurants, service stations, convenience stores, office buildings and recreational areas. The demographics of the neighborhood show strong levels of expansion in population and households, typical of growing areas in suburban locations. The income and education characteristics can best be described as middle income. We anticipate that the overall demographic nature and development character of the neighborhood will remain relatively stable into the foreseeable future.

SURVEY

FLOOD PLAIN MAP

Site Analysis

The following chart summarizes the salient characteristics of the subject site.

SITE SUMMARY AND ANALYSIS

Physical Description Gross Site Area 8.61 Acres 375,139 Sq. Ft. Net Site Area 8.61 Acres 375,139 Sq. Ft. Primary Road Frontage Emery Avenue NW 860 Feet Secondary Road Frontage Central Drive NW 250 Feet Excess Land Area None n/a Surplus Land Area None n/a Shape Irregular Topography Moderate Slope Parcel Number(s) 56118939950000

Zoning District RC, Residential Compact Flood Map Panel No. & Date 1 3710561100K 16-Nov-18 Flood Map Panel No. & Date 2 3710561200K 16-Nov-18 Flood Zone Zone X (Unshaded) Adjacent Land Uses Land & Residential Earthquake Zone N/A

Comparative Analysis Rating Visibility Average Functional Utility Average Traffic Volume Average Adequacy of Utilities Assumed adequate Landscaping Average Drainage Assumed adequate

Utilities Provider Availability Water Water & Sewer Authority of Cabarrus County Yes Sewer Water & Sewer Authority of Cabarrus County Yes Natural Gas Piedmont Natural Gas Yes Electricity Duke Energy Yes Telephone Various Yes Mass Transit CATS Yes

Other Yes No Unknown Detrimental Easements X Encroachments X Deed Restrictions X Reciprocal Parking Rights X

Source: Various sources compiled by CBRE

INGRESS/EGRESS The following chart summarizes the salient characteristics of the surrounding streets:

STREET IMPROVEMENTS SUMMARY No Lanes Name Type Direction Direct Access (total) Curbs Sidewalks Streetlights Surface Emery Avenue NW Local E/W N/A 2 No No No Asphalt Central Drive NW Local N/S N/A 2 No No No Asphalt Compiled by CBRE

EASEMENTS AND ENCROACHMENTS There are no known easements or encroachments impacting the site that are considered to affect the marketability or highest and best use. It is recommended that the client/reader obtain a current title policy outlining all easements and encroachments on the property, if any, prior to making a business decision.

COVENANTS, CONDITIONS AND RESTRICTIONS There are no known covenants, conditions or restrictions impacting the site that are considered to affect the marketability or highest and best use. It is recommended that the client/reader obtain a copy of the current covenants, conditions and restrictions, if any, prior to making a business decision.

ENVIRONMENTAL ISSUES The appraiser is not qualified to detect the existence of potentially hazardous material or underground storage tanks which may be present on or near the site. The existence of hazardous materials or underground storage tanks may affect the value of the property. For this appraisal, CBRE, Inc. has specifically assumed that the property is not affected by any hazardous materials that may be present on or near the property.

CBRE was provided a Phase I Environmental Site Assessment performed on the subject property by AEI Consultants on February 19, 2020 (AEI Project No. 418794). The findings from that report are as follow:

ADJACENT PROPERTIES The adjacent land uses are summarized as follows:

North: Land / Interstate South: Single-Family Residential East: Single-Family Residential West: Land / Single-Family Residential

CONCLUSION The site is reasonably well located and afforded good access and visibility from roadway frontage. There are no known detrimental uses in the immediate vicinity. Overall, there are no known factors which are considered to prevent the site from development to its highest and best use, as if vacant, or adverse to the proposed use of the site.

PROPOSED IMPROVEMENT SITE PLAN

Improvements Analysis

The following chart shows a summary of the proposed improvements.

PROPOSED IMPROVEMENTS SUMMARY AND ANALYSIS Property Type Multifamily (Multi-Family Garden) Number of Residential Buildings 4 Number of Residential Stories 3 Number of Ancilliary Buildings2 One-Story Clubhouse and Pump House Gross Building Area 113,776 SF Net Rentable Area 104,904 SF Number of Units 132 Average Unit Size 795 SF Development Density 15.3 Units/Acre Parking Improvements Surface Parking Spaces: 201 Parking Ratio (spaces/unit) 1.52 Year Built 2022 Actual Age 0 Years Effective Age 0 Years Total Economic Life 50 Years Remaining Economic Life 50 Years Age/Life Depreciation 0.0% Functional Utility Typical

Source: Various sources compiled by CBRE

PROPOSED UNIT MIX Percent of Unit Size Unit Mix/Type No. Units Total (SF) NRA (SF) 1BR/1BA 36 27.3% 658 23,688 2BR/2BA 96 72.7% 846 81,216 Total/Average: 132 100.0% 795 104,904

Source: Various sources compiled by CBRE

YEAR BUILT The subject is proposed, and the developer’s timeline is as follows:

 Site Work Original Start: December 2019

 Site Work Restarted: April 2021

 First Units Delivered: December 2021

 Completion: April 2022

CONSTRUCTION CLASS Building construction class is as follows:

D - Wood frame, floor and structure; considered combustible

Upon completion, the proposed construction components are assumed to be in working condition and adequate for the building.

Upon completion, the overall quality of the proposed facility is expected to be excellent for the neighborhood and age. However, CBRE, Inc. is not qualified to determine structural integrity and it is recommended that the client/reader retain the services of a qualified, independent engineer or contractor to determine the structural integrity of the improvements prior to making a business decision.

The following illustrates the key features/components of the subject improvements:

PROPOSED IMPROVEMENT DESCRIPTION & RATING Improvement Comparative Summary Description Rating Foundation Reinforced concrete slab on compact fill & plywood deck with light-weight concrete cover Good Frame Wood Good Exterior Walls Hardiboard Good Interior Walls Textured and painted drywall Good Roof Pitched asphalt shingles Good Ceiling Painted drywall Good HVAC System Pad Mounted HVAC units Good Exterior Lighting Standard exterior fixtures Good Interior Lighting Incandescent & fluorescent Good Flooring Carpet & wood like vinyl Good Plumbing Assumed adequate Good Stairwells Exterior Stairwells in breezeways Good Elevators None Good Smoke Detectors Yes Good Sprinkler System Yes Good Parking Surface - Asphalt Good Landscaping Grass, natural forest, and planted beds Good Source: Various sources compiled by CBRE  The proposed foundation is assumed to be of adequate load-bearing capacity to support the improvements.

 It is assumed the improvements will have adequate fire alarm systems, fire exits, fire extinguishers, fire escapes and/or other fire protection measures to meet local fire marshal requirements. CBRE, Inc. is not qualified to determine adequate levels of safety & fire protection, whereby it is recommended that the client/reader review available permits, etc. prior to making a business decision.

UTILITIES The following chart summarizes the proposed utility and the party responsible:

UTILITY SUMMARY Responsible Party Monthly Expense Utility Landlord Tenant Not Available Party Paid Cost Per Month Electricity X Provider ----- Water/Sewer X Provider ----- Gas X N/A ----- Cable Television/Internet X Provider ----- Pest Control X N/A ----- Trash Removal X Landlord $15 Valet Trash Removal X N/A ----- Source: Property Management  Trash removal expense based on typical market standards

PROJECT AMENITIES The following chart summarizes the proposed project amenities:

PROJECT AMENITIES Type Yes No Clubhouse/Leasing Office X Community Pool X Conference Room X Business Center X Fitness Center X Media Room X Yoga Room X Game Room X Dog Park X Outdoor Lounge / Courtyard X Grilling Area X Walking Trails X Source: Drawing Sets

APPLIANCE SUMMARY The following chart summarizes the proposed appliances available at the subject:

UNIT APPLIANCE SUMMARY Appliance Yes No Range/Oven X Vent-hood X Refrigerator X Icemaker X Garbage disposal X Dishwaser X Microwave X Washer/Dryer X Source: Drawing Sets

UNIT AMENITIES & FINISHES SUMMARY PROPOSED UNIT AMENITIES & FINISHES SUMMARY Kitchens - Wood Cabinets Counters X Granite Formica Tile Back Splash Tile Stone X None Appliances X Stainless Steel White Black Flooring Ceramic Tile X Wood like Vinyl Bathrooms - Wood Cabinets Combination Tub/Shower X Fiberglass Tile None Commode X White Almond Black Counters X Granite Formica Cultured Marble Flooring Ceramic Tile X Wood like Vinyl

Interiors Ceiling Fans X Den X Master BR X All BR Vaulted Upper Ceiling Den Master BR X None Built-in shelves Den Kitchen X None Lighting Incandescent X Fluorescent X LED Fireplace Gas Wood X None Washer/Dryer X Yes No Patio/Balcony X Yes No Storage Yes X No Source: Property Management  Unit finishes are based on provided information and assumptions based on market standards

SITE AMENITIES Parking and Drives The project plan features adequate surface parking, including reserved handicap spaces. All parking spaces and vehicle drives will be asphalt paved and considered to be in excellent condition upon completion.

FUNCTIONAL UTILITY All of the floor plans are considered to feature functional layouts and the layout of the overall project is considered functional in utility. Therefore, the unit mix is also functional, and no conversion is warranted to the existing improvements.

ADA COMPLIANCE All common areas of the property are anticipated to have handicap accessibility. The client/reader’s attention is directed to the specific limiting conditions regarding ADA compliance.

FURNITURE, FIXTURES AND EQUIPMENT The apartment units will be rented on an unfurnished basis. However, miscellaneous maintenance tools, pool furniture, leasing office furniture, recreational room and clubhouse furniture, and various exercise machines are examples of personal property associated with, and typically included in the sale of, multifamily apartment complexes. Our market value assumes any FF&E at the property would transfer if the property were to sell. This is consistent with how buyers and sellers analyze similar properties.

ENVIRONMENTAL ISSUES The appraiser is not qualified to detect the existence of any potentially hazardous materials such as lead paint, asbestos, urea formaldehyde foam insulation, or other potentially hazardous construction materials on or in the improvements. The existence of such substances may affect the value of the property. For the purpose of this assignment, we have specifically assumed there are no hazardous materials that would cause a loss in value to the subject.

CONDITION ANALYSIS No notable items of deferred maintenance, besides that associated with the remaining construction, were observed during the site inspection. According to the most recent draw schedule the remaining cost to complete is $9,227,175 .

In order for a developer/entrepreneur to take the risk of completing the construction a profit factor has been included as incentive. The following table shows the components:

REMAINING COST TO COMPLETE Developer Draw Schedule - Cost to complete $9,227,175 Subtotal $9,227,175 Plus: Profit @ 20% $1,845,435 Total Deferred Maintenance: $11,072,610

For the purposes of this analysis, the remaining cost to complete has been deducted from each approach in order to determine the “as is” value indication.

ECONOMIC AGE AND LIFE CBRE, Inc.’s estimate of the subject improvements effective age and remaining economic life is depicted in the following chart:

ECONOMIC AGE AND LIFE Actual Age 0 Years Effective Age 0 Years MVS Expected Life 50 Years Remaining Economic Life 50 Years Accrued Physical Incurable Depreciation 0.0% Compiled by CBRE

The remaining economic life is based upon our on-site observations and a comparative analysis of typical life expectancies as published by Marshall and Swift, LLC, in the Marshall Valuation Service cost guide. While CBRE, Inc. did not observe anything to suggest a different economic life, a capital improvement program could extend the life expectancy.

CONCLUSION The proposed improvements are expected to be in excellent overall condition upon completion. Overall, there are no known factors that adversely impact the marketability of the improvements.

ZONING MAP

Subject

Zoning

The following chart summarizes the subject’s zoning requirements.

ZONING SUMMARY Current Zoning RC, Residential Compact Legally Conforming No - See Comments Uses Permitted The parcel is zoned RC Residential Compact. This zoning classification is established to provide a highdensity residential district allowing compact development consisting of the full spectrum of residential unit types where facilities and services are available. Unit types may include single family attached dwellings, townhouse, duplexes and apartments, with a maximum of 15 dwelling units per acre. Zoning Change Not likely Category Zoning Requirement Minimum Lot Size 5,000 Sq. Ft. Minimum Lot Width 50 Feet Maximum Height 35 Feet Minimum Setbacks Front Yard 50 Feet Street Side Yard 50 Feet Interior Side Yard 20 Feet Rear Yard 20 Feet Maximum FAR/Density 15.0 Units/Acre Subject's Actual Density 15.3 Units/Acre Parking Requirements 1.50 Spaces / Unit Subject's Actual Parking 1.52 Spaces / Unit Source: Planning & Zoning Dept.

ANALYSIS AND CONCLUSION The proposed improvements appear to represent a legally non-conforming use due to the proposed density exceeding the maximum density allowed under the RC zoning. It is noted that the site plan has been approved and building permits have been issued for the proposed development. Additional information may be obtained from the appropriate governmental authority. For purposes of this appraisal, CBRE has assumed the information obtained is correct.

Tax and Assessment Data

The following summarizes the local assessor’s estimate of the subject’s market value, assessed value, and taxes, and does not include any furniture, fixtures or equipment. The CBRE estimated tax obligation is also shown.

In North Carolina the machinery act requires each county to revalue real property (land buildings and other improvements to land) at least every 8 years. The act also requires the counties to appraise real property uniformly at its true value in money. True value in money is the "price estimated in terms of money at which the property would change hands between a willing and financially able buyer and a willing seller", neither being under any compulsion to buy or sell and both having reasonable knowledge of all the uses to which the property is adapted and for which it is capable of being used. (NCGS 105-283).

In North Carolina, real estate is assessed on a calendar year basis as of January 1st. Corresponding taxes are due in full by December of the year following the actual assessment. State law requires reassessment no less than every eight years, however, counties can adopt a more frequent assessment cycle, if desired. Further properties are assessed on the basis of 100% of market value.

In North Carolina a sale of the subject does not trigger a reassessment of the property. Only a physical change during a reassessment cycle would provide the basis for increase.

For purposes of this analysis we are assuming any outstanding property tax liability has been paid. CBRE assumes that all taxes are current.

AD VALOREM TAX INFORMATION Pro Forma Prospective Parcel Assessor's Parcel No. Parcel Description 2020 Market Value 1 56118939950000 305,690

Subtotal $305,690 $20,501,923 % of Assessed Value 100% 100% Final Assessed Value 305,690 $20,501,923

General Tax Rate (per $100 A.V.) 1.220000 1.220000

Total Taxes $3,729 $250,123

Source: Assessor's Office

 The subject county was last reassessed in 2020 and the next re-assessment is scheduled for 2024.

TAX COMPARABLES As a crosscheck to the subject’s applicable real estate taxes, CBRE, Inc. has reviewed the real estate tax information according to Cabarrus County for comparable properties in the market area. The following table summarizes the comparables employed for this analysis:

AD VALOREM TAX COMPARABLES Skybrook Subject Pro Legacy The Station at Waterlynn at Comparable Rental Laurel View Apartment Forma Concord Poplar Tent Concord Homes Estimate

Year Built 2018 2016 2018 2018 2014 2022 No. Units 174 348 312 268 238 132 Tax Year 2021 2021 2021 2021 2021 2021 Assessor's Market Value $26,426,300 $53,002,910 $42,388,930 $45,489,940 $39,699,580 $20,501,923 AV Per Unit $151,875 $152,307 $135,862 $169,739 $166,805 $155,318

Source: Assessor's Office The current assessment reflects an assessment of the subject without any improvements therefore the current tax burden is not indicative of the subject being fully assessed as proposed.

The pro forma taxes are estimated based on the comparable properties in the community. Each comparable is similar to the subject with regard to location and were recently completed.

PRO FORMA TAX CALCULATION Tax Comparables Price Per Unit Minimum: $135,862 Maximum: $169,739 Average: $155,318 Subject No. Units Pro Forma Tax Value 132 x $155,318 = $20,501,923 Compiled by: CBRE After consideration of each similarity and disparities the reconciled tax value for the subject is presented in the preceding table. The subject, as proposed, is inferior to the properties at the upper end of the range; therefore, the average of the range is utilized.

CONCLUSION Based on the foregoing information, the subject’s pro forma estimate assessment is supported by the comparable properties shown.

Market Analysis

The market analysis forms a basis for assessing market area boundaries, supply and demand factors, and indications of financial feasibility. Primary data sources utilized for this analysis include CBRE Research, CoStar, Axiometrics 1Q 2021, and ESRI 2020 Demographics. As previously noted, as of the date of value and the date of this report, the nation, region, and market area are impacted by the COVID-19 pandemic. This could have a prolonged effect on macroeconomic conditions, though at this time the length of duration is unknown. The perceived impact on real estate varies on several factors including asset class, use, tenancy, and location. Our analysis considers available information as of the effective date.

The subject is in the Charlotte Metro Market and Concord/Kannapolis/Salisbury Submarket and is considered a Class A midrise/garden style apartment community. According to the Institute of Real Estate Management (in Income/Expense Analysis: Conventional Apartments), the following multifamily property definitions may be applicable towards the subject:

Garden Type Projects: We consider this to be a group of low-rise apartment buildings situated on a sizable landscaped plot, under one management.

METROPOLITAN CHARLOTTE METRO APARTMENT MARKET OVERVIEW Recent Performance The following table summarizes historical and projected performance for the overall metropolitan Charlotte Metro apartment market, as reported by Axiometrics.

CHARLOTTE METRO APARTMENT MARKET Inventory Completions Occupied Stock Effective Rent Effective Rent Net Absorption Year Ending Occupancy (Units) (Units) (Units) ($/Unit / Mo.) Change (Units) 2011 140,673 1,175 131,670 93.6% $762 5.67% 3,446 2012 143,113 2,440 135,299 94.5% $806 6.34% 3,633 2013 147,043 3,930 138,867 94.4% $837 3.49% 3,564 2014 153,232 6,306 145,693 95.1% $887 3.42% 6,835 2015 158,670 5,503 151,752 95.6% $951 5.42% 6,050 2016 168,016 9,346 160,170 95.3% $999 4.95% 8,414 2017 175,555 7,624 166,268 94.7% $1,039 2.68% 6,105 2018 183,326 7,771 174,068 95.0% $1,098 2.89% 7,810 2019 191,013 8,040 182,074 95.3% $1,175 4.43% 7,999 2020 197,844 6,831 189,119 95.6% $1,200 1.25% 7,051 2021 Q1 200,129 2,285 191,203 95.5% $1,217 1.45% 2,086 2021 Q2* 202,520 2,391 194,419 96.0% $1,203 -1.15% 3,096 2021 Q3* 205,993 3,473 197,753 96.0% $1,209 0.50% 3,334 2021 Q4* 208,715 2,722 200,366 96.0% $1,221 0.99% 2,613 2022* 218,324 9,609 206,753 94.7% $1,270 3.15% 6,386 2023* 226,840 8,517 213,003 93.9% $1,283 2.08% 6,250 2024* 234,847 8,007 219,347 93.4% $1,312 1.90% 6,344 2025* 241,837 6,990 225,392 93.2% $1,350 2.98% 6,045 * Future Projected Data according to Axiometrics Source: Axiometrics, 1st Quarter 2021

The Charlotte Metro apartment market consists of approximately 200,129 units of apartment space. The following observations were noted from the table above:

 As of 1st Quarter 2021, there were approximately 191,203 units of occupied apartment space, resulting in an occupancy rate of 95.5% for the submarket. This reflects a slight decrease from the previous quarter’s occupancy of 95.6%, and a slight decrease from an occupancy rate of 95.6% from last year.

 The area experienced positive 2,086 units of net absorption for the current quarter. This indicates an improvement from the previous quarter’s positive 1,993 units of net absorption, and a decline from the positive 7,051 units of net absorption from last year.

 The area had completions of positive 2,285 units for the current quarter, which indicates an increase from the previous quarter’s completions of positive 2,215 units and indicates a decline from completions of positive 6,831 units from last year.

 The area achieved average effective rent of $1,217, which indicates a slight increase from the previous quarter’s effective rent of $1,200, and a slight increase from the effective rent of $1,200 from last year.

Historical Inventory – Charlotte Metro Market

Inventory is projected to be 208,715 units at the end of the current year, which represents an increase from the previous year’s inventory of 197,844 units. Inventory for next year is projected to be 218,324 units, reflecting an increase from the current year.

Historical Occupancy - Charlotte Metro Market

At the end of the current year, the occupancy rate is projected to be 96.0%, which reflects an increase from the 95.6% occupancy rate at the end of last year. Occupancy projections for next year are projected to be 94.7%, reflecting a decrease from the current year.

Historical Net Absorption - Charlotte Metro Market

At the end of the current year, the area is projected to experience positive 11,129 units of net absorption, which an improvement from the positive 7,051 units of net absorption for the

Proposed Emery Village Apartments, Concord, North Carolina © 2021 CBRE, Inc. Market Analysis previous year. The area is projected to experience positive 6,386 units of net absorption as of the end of next year, which indicates a decline from the current year.

Historical Completions - Charlotte Metro Market

The area is projected to achieve completions of positive 10,871 units for the current year, which indicates an improvement from the previous year’s completions of positive 6,831 units. The area is projected to experience completions of positive 9,609 units as of the end of next year, which indicates a decline from the current year.

Historical Effective Rent - Charlotte Metro Market

The area is projected to achieve average effective rent of $1,221 at the end of the current year, which indicates a slight increase from the previous year’s effective rent of $1,200. The area is projected to achieve effective rent of $1,270 by the end of next year, indicating an increase from the current year.

SUBMARKET SNAPSHOT The following table summarizes the supply of apartment units for each submarket within the Charlotte Metro market as of 1st Quarter 2021.

CHARLOTTE METRO SUBMARKET SNAPSHOT Inventory Completions* Effective Rent Submarket Occupancy (Units) (Units) ($/Unit / Mo.) Ballantyne 8,376 173 $1,375 95.0% Concord/Kannapolis/Salisbury 14,198 306 $1,079 97.5% East Charlotte 17,433 273 $1,060 95.1% Far East Charlotte/Mint Hill 6,579 260 $984 95.3% Gaston County 10,479 0 $1,053 96.8% Huntersville/Cornelius 7,536 0 $1,291 96.4% Matthews/Southeast Charlotte 9,637 661 $1,215 95.2% Mooresville/Statesville 8,562 487 $1,109 97.0% Myers Park 11,885 1,022 $1,359 95.5% North Charlotte 15,981 1,480 $1,183 95.2% Rock Hill/Fort Mill 18,588 872 $1,181 96.5% South Charlotte 12,556 0 $1,160 95.3% Southwest Charlotte 19,977 733 $1,190 95.6% UNC Charlotte 18,095 995 $1,192 95.4% Uptown/South End 20,247 830 $1,576 93.8% *Completions include trailing 4 quarters Source: Axiometrics, 1st Quarter Concord/Kannapolis/Salisbury Submarket Important characteristics of the Concord/Kannapolis/Salisbury apartment market are summarized below:

CONCORD/KANNAPOLIS/SALISBURY APARTMENT SUBMARKET Inventory Completions Occupied Effective Rent Effective Rent Net Absorption Year Ending Occupancy (Units) (Units) Stock (Units) ($/Unit / Mo.) Change (Units) 2011 10,968 117 10,037 91.5% $683 4.31% 92 2012 10,968 0 10,296 93.9% $714 2.36% 260 2013 11,620 652 10,984 94.5% $740 0.14% 688 2014 11,981 361 11,439 95.5% $777 3.08% 455 2015 12,190 209 11,777 96.6% $807 4.31% 337 2016 12,581 391 12,123 96.4% $870 5.28% 347 2017 13,104 523 12,617 96.3% $863 1.95% 493 2018 13,623 519 13,112 96.3% $933 3.33% 495 2019 13,778 155 13,329 96.7% $994 5.12% 217 2020 14,104 326 13,778 97.7% $1,062 4.53% 449 2021 Q1 14,198 94 13,837 97.5% $1,079 1.62% 60 2021 Q2* 14,320 122 13,905 97.1% $1,071 -0.74% 62 2021 Q3* 14,470 150 14,050 97.1% $1,079 0.75% 146 2021 Q4* 14,625 155 14,157 96.8% $1,087 0.74% 107 2022* 14,956 331 14,328 95.8% $1,135 3.20% 155 2023* 15,370 414 14,602 95.0% $1,137 1.45% 269 2024* 15,790 420 14,922 94.5% $1,149 0.58% 321 2025* 16,125 335 15,206 94.3% $1,173 1.85% 285 *Future Projected Data according to Axiometrics Source: Axiometrics, 1st Quarter 2021

The Concord/Kannapolis/Salisbury apartment submarket consists of approximately 14,198 units of apartment space. The current submarket inventory represents approximately 7.1% of the overall market inventory. The following observations were noted from the table above:

 As of 1st Quarter 2021, there were approximately 13,837 units of occupied apartment space, resulting in an occupancy rate of 97.5% for the submarket. This reflects a slight decrease from the previous quarter’s occupancy of 97.7%, and a slight decrease from an occupancy rate of 97.7% for last year. The submarket occupancy is above the 95.5% market occupancy.

 The submarket experienced positive 60 units of net absorption for the current quarter. This indicates a decline from the previous quarter’s positive 103 units of net absorption, and a decline from the positive 449 units of net absorption from a year ago. The submarket’s current net absorption of positive 60 units is below the overall market net absorption of positive 2,086 units.

 The submarket had completions of positive 94 units for the current quarter, which indicates an increase from the previous quarter’s completions of positive 33 units, and a decrease from the completions of positive 114 units from last year.

 The submarket achieved average effective rent of $1,079, which indicates a slight increase from the previous quarter’s effective rent of $1,062, and a slight increase from the effective rent of $1,062 from last year. The submarket’s current effective rent of $1,079 is below the overall market asking rent of $1,217.

Historical Inventory - Concord/Kannapolis/Salisbury Submarket

Submarket Inventory is projected to be 14,625 units at the end of the current year, which represents an increase from the previous year’s submarket inventory of 14,104 units. Inventory for next year is projected to be 14,956 units, reflecting an increase from the current year.

Historical Occupancy - Concord/Kannapolis/Salisbury Submarket

Submarket occupancy is projected to be 96.8% at the end of the current year, which represents a decrease from the previous year’s submarket occupancy of 97.7%. Submarket occupancy for next year is projected to be 95.8%, reflecting a decrease from the current year.

Historical Net Absorption - Concord/Kannapolis/Salisbury Submarket

Net absorption in the submarket is projected to be positive 375 units at the end of the current year, reflecting an improvement from the previous year’s net absorption of positive 449 units. Net absorption for next year is projected to be positive 155 units, indicating a decline from the current year.

Historical Completions - Concord/Kannapolis/Salisbury Submarket

The area is projecting positive 521 units of completions for the submarket at the end of the current year, which indicates an improvement from the previous year’s completions of positive 326 units. Completions of positive 331 units are projected for next year, which indicates a decline from the current year.

Historical Effective Rent - Concord/Kannapolis/Salisbury Submarket

Asking rent for the submarket is projected to be $1,087 at the end of the current year, which represents an increase from the previous year’s asking rent of $1,062. Asking rent for the submarket is projected to be $1,135, reflecting an increase from the current year.

Concord/Kannapolis/Salisbury Submarket Pipeline Below is a summary chart of the developer pipeline in the subject submarket. COVID-19 is having a significant impact on developer’s ability to plan into the future and as such, the current dates below could change:

Charlotte Metro Development Pipeline The following table summarizes the number of units currently in the Charlotte Metro and submarkets in multi-family development pipeline.

Delivery Schedule Yearly Summary Submarket 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 2019 2020 2021 2022 2023 Ballantyne 99 99 33 0 28 86 87 231 201 Concord/Kannapolis/Sal 33 66 0 56 114 117 62 33 94 122 150 155 17 155 326 521 17 isbury East Charlotte 89 122 188 0 0 0 45 136 92 0 0 110 168 112 399 181 202 280 Far East Charlotte/Mint 0 0 0 37 111 112 76 148 188 Hill Gaston County 51 34 0 0 0 0 0 0 0 245 54 115 125 81 27 85 299 348 Huntersville/Cornelius 0 103 156 0 0 0 0 0 0 74 255 96 96 96 259 425 192

Matthews/Southeast 0 0 0 0 0 0 97 207 357 352 115 87 30 90 90 304 911 210 Charlotte Mooresville/Statesville 0 0 144 182 129 115 90 75 207 438 229 243 0 105 105 106 108 326 409 1,117 316 108

Myers Park 314 273 311 144 144 165 186 324 269 261 145 291 201 157 1,042 819 966 358 North Charlotte 221 370 411 320 169 140 592 490 258 101 250 87 87 58 1,322 1,391 696 145 Rock Hill/Fort Mill 201 188 36 326 13 131 196 271 274 0 0 75 182 238 751 611 349 420 Southwest Charlotte 229 149 220 308 204 222 135 184 192 537 1,147 444 169 93 906 745 2,320 262

UNC Charlotte 286 548 525 152 0 112 218 307 358 156 312 757 606 313 94 1,511 637 1,583 1,013 Uptown/South End 373 322 153 148 223 365 394 47 24 352 625 297 258 261 996 1,029 1,298 519

1,896 2,274 2,177 1,636 1,024 1,453 2,139 2,185 2,237 2,469 3,473 2,696 1,929 1,648 370 133 108 7,983 6,801 10,875 4,080 108 7,983 6,801 10,875 4,080 108 29,847 As of 1Q21, there are signs of slowing construction in the active submarkets for the remainder of 2021, even in light of the COVID-19 impact and restrictions. It is noted, most of the development for 2020 and early 2021 were in the pipeline/planned prior to COVID-19 and we are not aware of any significant changes to these projects as a result of the outbreak. Deliveries are expected to slow in 2022 and out into 2023 due to the large number of deliveries in recent years and developer’s ability to plan into the future due to uncertainty related to COVID-19 in terms of lease-up, availability of materials, and future restrictions. As shown over the prior two years, the delivery of units to the overall market has been growing as the overall Charlotte metro market has grown. There are currently 14,549 units, awaiting a permit and ready to break ground in the back half of 2021 and through 2022. Anticipated new starts is most prominent in the submarkets in proximity to Uptown Charlotte including Uptown/South End, UNC Charlotte, Southwest Charlotte, Myers Park, and North Charlotte. Additionally the Rock Hill / Fort Mill submarket is the exception to this trend given the area’s interstate access to Charlotte and growing influence of the

Carolina Panthers and David Tepper who are building a new practice facility for the team in the submarket to grow the reach of the team in the Carolinas.

INVESTMENT TRENDS: Q1 2021 The following data are findings from the CBRE Research U.S. Multifamily Team for Quarter 4 2020 (Published May 3, 2021):

Q1 multifamily investment volume totaled $35.5 billion, down by 12.0% year over year and by 43.2% from Q4’s record quarterly total of $62.5 billion. Investment volume picked up significantly in the second half of Q1 with more product coming to the market. Investor appetite for multifamily assets, especially suburban product, was very strong and pushed cap rates down. Real Capital Analytics reported a 10-bp decline in the average multifamily cap rate in Q1. CBRE investment activity, however, suggests greater cap rate compressions, especially in many hot investment markets like Phoenix, Dallas/Ft. Worth, and Austin. Investment volume for the year ending Q1 totaling $140.3 billion was down by 27.4% year over year – a smaller drop than expected given the logistical issues of executing due diligence and market uncertainty in Q2 and Q3 2020. Multifamily accounted for 36.7% of Q1’s total commercial real estate investment volume, followed by office at 21.2% and industrial at 20.3%. We expect multifamily investment volume to rise later this year due to strengthening market performance, sustained robust investor appetite and new buyers coming into the sector.

MULTIFAMILY FORECAST: 2021 OUTLOOK The following data are findings from the CBRE Research:

Path to Full Recovery in 2021 Multifamily weathered the 2020 recession better than most property sectors—only industrial held up better—and market deterioration was far less than in previous recessions. Still, it was a tough year for multifamily as many owners lost rental income plus ancillary income from waived fees, deferred rents and delinquencies.

CBRE forecasts a return to pre-COVID vacancy levels and a 6% increase in net effective rents next year, with a full market recovery occurring in early 2022. The economic rebound will lead to rising multifamily demand, largely from “unbundling”—certain renters moving out of their parents’ homes or those of friends as job opportunities provide more financial flexibility to live independently. Demand levels in 2021 likely will fall short of pre-COVID peaks in 2018 and 2019 but should rise significantly from 2020.

Vacancy rates for affordable multifamily housing will remain relatively low in 2021. Unlike in previous recessions, more affordable housing inventory (Class B and C) maintained low vacancy rates and modest rent growth in 2020. Class C properties had higher delinquencies.

Class A assets were impacted the most by COVID-19 this year due to higher turnover from young adults moving back home, steady delivery of new supply and renters seeking less expensive housing. Class B assets should continue to outperform in 2021 with low vacancy and steady rent growth. Class A assets may not begin recovering until midyear.

Development will remain robust next year. Most of 2021’s scheduled deliveries were started long before COVID-19 and likely will reach 280,000 units on top of the estimated 300,000-unit total this year. This level of new supply will temper improvement in Class A vacancies and rents in many markets.

An Urban to Suburban Shift The COVID-induced recession impacted urban submarkets much more than suburban ones in 2020. As a result, suburban submarkets will lead the multifamily sector’s recovery in 2021 while urban submarkets will lag.

Five major COVID-19-related factors diminished the appeal of urban submarkets in 2020: remote working requirements, the closing of a portion of urban amenities, the reluctance to use public transit, a desire for more living space and a desire for greater access to the outdoors. Non-COVID-related factors exacerbated the situation, including the high cost of urban apartments and shifting demographics. Millennials are reaching life stages where urban living is often traded in for larger housing options in less-dense submarkets.

There are no indications that 2020’s decline in urban multifamily demand is permanent or there is an impending return to the hollowed-out cities of the 1970s and 1980s. Yet urban submarkets will lag in the multifamily sector’s overall recovery. Lower-density and less-expensive suburban submarkets held up remarkably well in 2020 and are positioned to lead overall market performance in 2021.

Increased Multifamily Investment in 2021 With steadily improving market conditions, multifamily investment volume is expected to increase in 2021. CBRE Research predicts U.S. multifamily investment volume will reach about $148

Proposed Emery Village Apartments, Concord, North Carolina © 2021 CBRE, Inc. Market Analysis billion next year, lower than 2019’s record level of $191 billion but a 33% gain over the 2020 estimate of $111 billion.

Investor demand for multifamily assets this year was more than previous recessions would have indicated. Pricing held up quite well. Still, many investors moved to the sidelines as the COVID-19 pandemic spread. With greater clarity on future revenue streams, institutional buyers and value- add investors should become much more active next year. Offshore buyers likely will increase their activity, especially if travel restrictions are eased.

CBRE forecasts a continuation of low interest rates next year. Favorable mortgage rates will provide further incentive for increased investment. The two key multifamily lenders—Fannie Mae and Freddie Mac—should have sizeable capital availability to support increased buying activity.

Investment Strategies for 2021 Suburban assets in the Midwest and Southeast regions will provide the best opportunities for solid market performance and achieving expected revenues next year. In the Midwest, Indianapolis was the best-performing market in 2020. Memphis, Detroit, Columbus, Cleveland, Cincinnati, Kansas City, Louisville and St. Louis also were among the best in the country.

Most Southeast metros weathered the 2020 recession relatively well. The leaders were Greensboro, Jacksonville, Richmond and Virginia Beach. Atlanta, Charlotte, Raleigh and Tampa also performed relatively well and are positioned for solid performance in 2021.

Multifamily segments that had greater market deterioration in 2020—such as Class A assets in urban submarkets, particularly in gateway cities—may not stabilize until well into 2021 and

Proposed Emery Village Apartments, Concord, North Carolina © 2021 CBRE, Inc. Market Analysis present more investment risk. Buyers may seek pricing discounts for such assets, but significantly discounted pricing will remain difficult to find.

The most impacted metros in 2020 were San Francisco, San Jose and New York. Other underperformers included Los Angeles, Boston, Seattle, Oakland, Austin, Miami, Chicago, Washington, D.C. and Orlando. Among these, investors may favor high-tech markets for their potential quicker economic recovery, but tech firms’ remote working policies may not restore multifamily demand as quickly.

While the large, diversified high-growth metros of Phoenix, Dallas/Ft. Worth and Denver performed at about the national average in 2020, their demand dynamics are so compelling that they will definitely be on investors’ radar in 2021.

CONCLUSION Overall, market participants are indicating a pause in sale and lease transactions as buyers and tenants navigate this period of uncertainty. In addition to market uncertainty, government, company and individual social distancing mandates may impact property inspections resulting in extended due diligence periods.

In general, market participants are expecting a rebound between the second half of 2020 and first half of 2021, depending on the asset type and assuming the crisis is short-term in nature. Note, this reflects current sentiment from a sample of market participants and may change going forward.

DEMOGRAPHIC ANALYSIS Demand for residential properties is a direct function of demographic characteristics analyzed on the following pages.

Housing, Population and Household Formation The following table illustrates the population and household changes for the subject neighborhood with primary focus on the 1-, 3- and 5-mile radius.

POPULATION AND HOUSEHOLD PROJECTIONS Charlotte-Concord- Gastonia, NC-SC 1 Mile Radius 3 Mile Radius 5 Mile Radius Metropolitan Population Statistical Area 2025 Total Population 7,050 49,667 107,893 2,920,023 2020 Total Population 6,559 46,183 99,601 2,685,444 2010 Total Population 5,850 40,662 87,732 2,243,960 2000 Total Population 4,797 35,665 78,934 1,742,765 Annual Growth 2020 - 2025 1.45% 1.47% 1.61% 1.69% Annual Growth 2010 - 2020 1.15% 1.28% 1.28% 1.81% Annual Growth 2000 - 2010 2.00% 1.32% 1.06% 2.56% Households 2025 Total Households 2,986 19,630 41,972 1,118,881 2020 Total Households 2,778 18,227 38,740 1,028,266 2010 Total Households 2,465 15,838 33,905 858,500 2000 Total Households 2,108 14,030 30,765 667,966 Annual Growth 2020 - 2025 1.45% 1.49% 1.62% 1.70% Annual Growth 2010 - 2020 1.20% 1.41% 1.34% 1.82% Annual Growth 2000 - 2010 1.58% 1.22% 0.98% 2.54% Source: ESRI As shown, the subject’s neighborhood is experiencing moderate increases in both population and households.

Income Distributions Household income available for expenditure on housing and other consumer items is a primary factor in determining the price/rent level of housing demand in a market area. In the case of this study, projections of household income, particularly for renters, identifies in gross terms the market from which the subject submarket draws. The following table illustrates estimated household income distribution for the subject neighborhood.

HOUSEHOLD INCOME DISTRIBUTION Charlotte-Concord- Gastonia, NC-SC 1 Mile Radius 3 Mile Radius 5 Mile Radius Metropolitan Households by Income Distribution (2020) Statistical Area <$15,000 9.25% 9.02% 9.31% 8.06% $15,000 - $24,999 13.35% 11.46% 11.27% 8.38% $25,000 - $34,999 10.91% 12.20% 12.14% 9.20% $35,000 - $49,999 13.82% 12.65% 12.49% 13.07% $50,000 - $74,999 24.15% 19.38% 18.19% 17.91% $75,000 - $99,999 12.89% 11.86% 12.55% 12.87% $100,000 - $149,999 9.14% 13.67% 14.02% 15.65% $150,000 - $199,999 3.89% 4.86% 4.98% 6.74% $200,000+ 2.63% 4.90% 5.04% 8.12% Source: ESRI The following table illustrates the median and average household income levels for the subject neighborhood.

HOUSEHOLD INCOME LEVELS

Charlotte-Concord- Gastonia, NC-SC 1 Mile Radius 3 Mile Radius 5 Mile Radius Metropolitan Income Statistical Area 2020 Median Household Income $51,757 $54,311 $54,819 $63,483 2020 Average Household Income $64,997 $75,442 $76,373 $91,129 2020 Per Capita Income $27,387 $29,534 $29,734 $34,978 Source: ESRI An analysis of the income data indicates that the submarket is generally comprised of middle- income economic cohort groups, which include the target groups to which the subject is oriented.

Employment An employment breakdown typically indicates the working-class characteristics for a given market area. The specific employment population within the indicated radii of the subject is as follows:

EMPLOYMENT BY INDUSTRY

Charlotte-Concord- Gastonia, NC-SC 1 Mile Radius 3 Mile Radius 5 Mile Radius Occupation (2020) Metropolitan Statistical Area

Agric/Forestry/Fishing/Hunting 0.10% 0.53% 0.44% 0.53% Construction 6.85% 9.06% 9.58% 7.53% Manufacturing 8.03% 9.98% 10.88% 12.64% Wholesale Trade 2.11% 2.87% 3.15% 3.11% Retail Trade 15.68% 12.01% 11.03% 10.52% Transportation/Warehousing 6.44% 4.69% 4.49% 5.06% Information 2.25% 1.47% 1.41% 2.01% Finance/Insurance 3.91% 5.18% 6.34% 8.67% Prof/Scientific/Tech Services 3.43% 5.03% 5.04% 8.22% Mgmt of Companies/Enterprises 0.00% 0.35% 0.23% 0.24% Admin/Support/Waste Mgmt Srvcs 3.22% 4.07% 3.90% 4.43% Educational Services 6.16% 7.54% 7.80% 8.08% Health Care/Social Assistance 21.74% 18.02% 16.69% 13.24% Arts/Entertainment/Recreation 0.24% 1.81% 2.03% 1.64% Accommodation/Food Services 8.17% 8.04% 7.99% 6.16% Other Services (excl Publ Adm) 4.88% 5.09% 5.32% 5.04% Public Administration 6.78% 4.24% 3.71% 2.90% Source: ESRI The previous table illustrates the employment character of the submarket, indicating a predominantly middle-income employment profile, with the majority of the population holding finance, educational services, and health care related jobs.

Economic Overview Charlotte's banking industry bolstered its economy through the most recent economic downturn. The market has recovered about 70% of jobs lost since March 2020, with financial activities continuing to add jobs throughout the pandemic. Overall, Charlotte's prospects for recovery

Proposed Emery Village Apartments, Concord, North Carolina © 2021 CBRE, Inc. Market Analysis remain strong. Financial activities and broader headquarters job growth should continue to drive population growth. With the recent relaxation of some dining and in-person meeting restrictions, and the widening of vaccination eligibility, leisure and hospitality employment will begin to return and is set to outpace national averages over the next five years, according to Oxford Economics projections.

Home to the headquarters or largest employment center of three of the nation's six largest banks — Bank of America, Wells Fargo, and Truist — the relative strength of the financial activities industry stabilized job losses in industries like professional services, trade, transportation and utilities, and information, all of which beat national averages. Despite the downturn, Charlotte continues to attract headquarters and office relocations. Since 2018, four Fortune 1000 companies — Honeywell, Dentsply Sirona, Truist Financial, and Centene — have officially moved their national or regional headquarters to the market. Nine Fortune 500 and 18 Fortune 1000 companies are now headquartered here.

As technology needs grow across all industries, companies like Honeywell, Lowe's, and Allstate have expanded their tech practices in the market, particularly in Uptown and SouthEnd. Tech talent growth in Charlotte builds off momentum from the digital transformation of financial activities. In addition to growing tech workforces at big banks, homegrown payments and FinTech companies like AvidXchange and LendingTree grew from startups to large corporate tenants, paving the way for Silicon Valley firms like Credit Karma, which opened an East Coast office in the Ballantyne submarket in 2018, and Robinhood, which in March 2021 announced it would bring 389 new jobs to Charlotte, likely in Uptown's Legacy Union building. Microsoft continues to add to its 1,000-plus headcount in the city's Southwest submarket, while marketing analytics company Red Ventures employs more than 2,000 on its campus just across the South Carolina border in Lancaster County.

Charlotte's health care and life sciences industry also passed a milestone in March when Atrium Health and Wake Forest University School of Medicine announced official plans for a medical school. The Charlotte market's first four-year medical school will be located on a mixed-use campus near Atrium's flagship hospital in the Midtown submarket including up to 1.3 million SF of office, multifamily, retail, and hotel space, in addition to educational and research facilities. The first students are scheduled to arrive in fall 2024.

As a fast-growing Sunbelt region, Charlotte has long been a destination for newcomers from higher-cost regions, particularly in the Northeast and Midwest. While official statistics on migration are not yet available for 2020, early evidence indicates this trend intensified during the COVID-19 crisis. A LinkedIn report released in March 2021 ranked Charlotte as second only to Austin in growth among U.S. metros over the past year. Rapid population growth has led to a tight housing market, with the regional realtors association reporting less than three weeks of home inventory on the market as of March 2021. Median home sales prices of around $300,000, up 12% year over year, remain low compared to larger markets.

Local Demand Generators Despite the many challenges presented in 2020, the Charlotte Region continued to grow. Several transformational economic development projects were announced during the year, surpassing capital investment numbers from 2019. The region ended the year on a high note, adding 44,867 jobs (3.5% growth) in Q4, outpacing national growth of 2.3%. December job growth in the Charlotte Region remained positive while national rates declined. The Charlotte Region’s recovery continued in Q4 2020, with particularly strong growth in the Transportation and Warehousing, Government, and Retail Trade sectors. In its second quarter of recovery, the region has added back more than half of the jobs lost in the first two quarters of the year. The regional economy had tepid growth during the first quarter of 2021 as the COVID-19 caseload reached the highest to date. Encouragingly, the unemployment rate continued to tick down to 4.6% and the region continued to add jobs, albeit at a slower pace than the previous two quarters. Moving forward, business sentiment is buoyed by the ahead of schedule distribution of the COVID-19 vaccine and confidence in the Charlotte Region is illustrated by the busiest quarter for new business inquiries since 2007.

The following chart shows the most recent quarters:

AREA GROWTH New Capital Net New New New Project Investments Year Jobs Projects Jobs (Millions) 2Q 2019 14,967 17 4214 $315.4 3Q 2019 -3,267 25 4101 $222.7 4Q 2019 19,533 25 1760 $754.0 1Q 2020 -13,167 23 832 $305.9 2Q 2020 -156,033 22 2651 $1,168.4 3Q 2020 43,100 15 4447 $1,221.9 4Q 2020 44,867 24 2145 $286.5 1Q 2021 9,100 18 1315 $136.7 Source: Charlotte Chamber of Commerce Overall, the region experienced a 5.8% job loss in 2020, spurred by the COVID-19 pandemic, particularly in the leisure and hospitality industry. Though expansion and relocation announcements indicate continued confidence that the region will quickly recover. The Charlotte Region has recovered nearly 88,000 of the jobs it lost in the first and second quarters. The region added 9,100 jobs in the first quarter. Despite the gain, the Charlotte Region still has about

50,000 fewer jobs than before the pandemic (-3.7%). The region’s performance in finance and insurance, along with transportation and warehousing, has helped strengthen the region’s position.

The pace of the recovery slowed in the Q1-2021 as the number of COVID-19 cases peaked in January. As vaccinations become much more widespread and the economy’s recovery builds momentum the region is in a strong position to grow employment in the second quarter. Despite 11 straight months of job gains in the Charlotte Region, the Charlotte region is still about 50,000 jobs below its pre-pandemic peak. Part of what is driving slower employment growth is that employers are finding it difficult to find the workers they need. Many workers are caring for family members or are concerned about COVID-19. In addition, many employers are concerned that additional unemployment insurance payments are creating a disincentive to work.

Expansion and relocation have been the common theme for the past few quarters as several large corporations announced plans to either expand and/or relocate to Charlotte leaving those in the business community optimistic:

 YMCA of Greater Charlotte furloughed 240 full-time employees at its locations in Charlotte.

 Great Lakes Services LLC, doing business as Great Wolf Lodge, closed its property in Concord; laying off 254 fulltime employees.

 HMSHost, which provides hospitality services, furloughed 814 employees at Charlotte Douglas International Airport.

 Engineered Sintered Components Company, which manufactures powdered metal, laid off 292 workers at its facility in Iredell County.

 Hilton Charlotte City Center temporarily closed its uptown hotel, laying off 163 employees.

 Enterprise Holdings, a car rental agency, laid off 271 employees at its locations in Charlotte.

 DriveTime, a used-car retailer, closed its inspection center in North Charlotte, resulting in 109 layoffs.

Source: Carolina’s Real Data, March 2021 Local Economic Outlook Based on this analysis, the immediate area surrounding the subject is projected to experience positive growth relative to households and population into the near future. It appears the peak in unemployment was in May but further federal relive to individuals and businesses will have a significant impact on future job growth. The area will be impacted by Covid-19 but the strong growth and solid backdrop going into the pandemic positions the metro area to better limit the impact of the virus.

COMPETITIVE PROPERTIES Comparable properties were surveyed in order to identify the current occupancy within the competitive market. The comparable data is summarized in the following table:

SUMMARY OF COMPARABLE MULTIFAMILY RENTALS Comp. Distance from No. Name Location Subject Occupancy

1 The Bridges of Cabarrus 101 Three Mile Loop, 1.2 Miles 84% Kannapolis, NC 2 Coddle Creek Apartments 2024 Barr Road, 3.7 Miles 46% Concord, NC 3 Hawthorne at the Glen 6255 Fernwood Drive, 3.7 Miles 98% Concord, NC 4 Laurel View 350 Joshua Place NW, 3.6 Miles 96% Concord, NC 5Legacy Concord 5020 Avent Drive NW, 3.7 Miles 97% Concord, NC 6 The Station at Poplar Tent 50 Poplar Station Circle, 4.7 Miles 97% Concord, NC 7 Skybrook Apartment Homes 90 Oak Hill Court, 8.4 Miles 96% Huntersville, NC

Subject Emery Village Apartments 174 Emery Avenue Northwest, 48% Concord, North Carolina

Compiled by CBRE The comparable properties surveyed reported occupancy rates of 46% or better, and all are currently in good to excellent condition. Comparable One and Two are operating below a stabilized level as they are all in the initial lease-up phase.

SUBJECT ANALYSIS Absorption The market norm generally perceived for the lease-up of an apartment project is an absorption velocity of 10 to 25 units per month. Based on actual comparables in the market it appears the market norms are being achieved in the subject submarket.

AXIOMetrics, Inc. tracks lease-up trends in the Charlotte-Concord-Gastonia market and the subject’s Concord/Kannapolis/Salisbury submarket (as defined by AXIOMetrics). Below is a summary of recent lease-up trends over the past 18 months.

Based on the above, newly delivered projects in the overall Charlotte-Concord-Gastonia market and Concord/Kannapolis/Salisbury submarket appear to be absorbing 4 to 17 units per month which equates to 11 to 12 units per month on average.

Additionally, the following represents the recent leasing trends of comparable properties in the subject submarket that are located in proximity to the subject:

 The Bridges of Cabarrus (2021 year built 240-units) – Began preleasing in the Fall of 2020 with first move-ins March 2021. Management reported the property is 100% preleased and leased roughly 30 units a month. This speed is atypical in the market and management offered concessions to facilitate the move-in rate, but nevertheless is positive for the submarket overall.

 The Wayford at Concord (2020 year built 150-units townhome style) - Began leasing in 2020 and averaged 10 units a month over a 12 month lease up period.

Given the location of the subject property, level of construction occurring in the market, level of competition in the immediate area, and current economic conditions, an absorption rate at the market average appears appropriate. The concluded rate of 12-units per month starting with the first delivery is projected realizing the summer months will likely lease faster than the winter months, but on average the absorption figure appears reasonable based on the current and forward looking market conditions.

Occupancy CBRE, Inc.’s conclusion of stabilized occupancy for the subject is illustrated in the following table. This estimate considers the physical factors of the market.

OCCUPANCY CONCLUSIONS Concord Area 95.5% Concord/Kannapolis/Salisbury Submarket 97.5% Stabilized Rent Comparables 97.0% Subject's Occupancy at Completion 48.5% Subject's Stabilized Occupancy 95.0% Lease-up Period 5 Months Compiled by CBRE

The concluded stabilized occupancy is bracketed by the overall market, submarket level and the stabilized rent comparables.

CONCLUSION The area apartment market and the local submarket are exhibiting stabilized occupancy levels. Net rental rates are showing continued positive trends in the face of ongoing new inventory. The long-term projection for the subject submarket is for continued stability.

With respect to the subject in particular, we believe the subject is well located for an apartment project. It is in good proximity to employment centers, retail and entertainment options, major roadways, and the surrounding apartment developments are experiencing average levels of demand. Based upon our analysis, the subject should continue to experience market acceptance.

Highest and Best Use

In appraisal practice, the concept of highest and best use represents the premise upon which value is based. The four criteria the highest and best use must meet are:

 legally permissible;  physically possible;  financially feasible; and  maximally productive. The highest and best use analysis of the subject is discussed below.

AS VACANT Legal Permissibility The legally permissible uses were discussed in the Site Analysis and Zoning Sections.

Physical Possibility The subject is adequately served by utilities, and has an adequate shape and size, sufficient access, etc., to be a separately developable site. There are no known physical reasons why the subject site would not support any legally probable development (i.e. it appears adequate for development). Existing structures on similar sites provides additional evidence for the physical possibility of development.

Financial Feasibility The determination of financial feasibility is dependent primarily on the relationship of supply and demand for the legally probable land uses versus the cost to create the uses. As discussed in the market analysis, the subject multifamily market is generally stabilized. Development of new multifamily properties has occurred in the past few years. Further, within the subject market, there are proposed or under construction multifamily projects in the competitive market.

Maximum Productivity - Conclusion The final test of highest and best use of the site as if vacant is that the use be maximally productive, yielding the highest return to the land.

Based on the information presented above and upon information contained in the market and neighborhood analysis, we conclude that the highest and best use of the subject as if vacant would be the development of an multifamily property.

AS PROPOSED Legal Permissibility The site is proposed to be improved with an multifamily development that is a legal, non- conforming use.

Physical Possibility The layout and positioning of the improvements are considered functional for multifamily use. While it would be physically possible for a wide variety of uses, based on the legal restrictions and the design of the improvements, the continued use of the property for multifamily users would be the most functional use.

Financial Feasibility The financial feasibility of an multifamily property is based on the amount of rent which can be generated, less operating expenses required to generate that income; if a residual amount exists, then the land is being put to a productive use. Based upon the income capitalization approach conclusion, the subject is producing a positive net cash flow and continued utilization of the improvements for multifamily purposes is considered financially feasible. Further, the value of the improvements detailed clearly exceeds the underlying land value.

Maximum Productivity - Conclusion As shown in the applicable valuation sections, buildings that are similar to the subject have been acquired or continue to be used by multifamily owners/tenants. None of the comparable buildings have been acquired for conversion to an alternative use. The most likely buyer for the subject property is as follows:

 Institutional

Based on the foregoing, the highest and best use of the property, as improved, is consistent with the proposed use as a multifamily development.

Land Value

The following map and table summarize the comparable data used in the valuation of the subject site. A detailed description of each transaction is included in the addenda.

SUMMARY OF COMPARABLE LAND SALES Transaction Actual Sale Adjusted Sale Size Size Density Allowable Price Per Price Price Per No. Property Location Type Date Proposed Use Price Price 1 (Acres) (SF) (UPA) Units Acre Per SF Bldg Unit

1 12221 Sam Furr Road Sale Feb-21 Residential $3,900,000 $3,900,000 35.81 1,559,709 8.94 320 $108,920 $2.50 $12,188 Huntersville, NC 28078 development

2 2104 Ashley Rd Sale Dec-20 Multifamily $1,580,000 $1,580,000 5.81 253,001 25.83 150 $272,034 $6.25 $10,533 Charlotte, NC 28208

3 5050 Ridge Road Sale Jul-20 Multifamily $2,150,000 $2,150,000 10.75 468,270 24.84 267 $200,000 $4.59 $8,052 Charlotte, NC 28269

4 8150 Weddington Road Sale Feb-20 Multifamily $1,500,000 $1,500,000 11.50 500,940 12.52 144 $130,435 $2.99 $10,417 Concord, NC 28027

Subject 174 Emery Avenue Northwest, ------Multifamily ------8.61 375,139 15.33 132 ------Concord, North Carolina

1 Adjusted sale price for cash equivalency and/or development costs (where applicable) Compiled by CBRE The sales utilized represent the best data available for comparison with the subject and were selected from the Charlotte area. These sales were chosen based upon recent transaction date, proximity to the subject, and similar proposed use.

Location Adjustments The following supplemental data was collected in order to provide additional support for our location adjustments:

LAND SALES LOCATION ADJUSTMENT ANALYSIS

Comparable Number Subject1234 Address 174 Emery Avenue 12221 Sam 2104 Ashley Rd 5050 Ridge 8150 Northwest Furr Road Road Weddington Road Radius for Demographic Analysis 3 Mile Radius 3 Mile Radius 3 Mile Radius 3 Mile Radius 3 Mile Radius

2020 Households 18,227 13,711 33,011 22,715 13,306 2020 Average Household Income $75,442 $138,397 $71,965 $114,091 $109,856 AHI Relative to Subject --- 83.4% -4.6% 51.2% 45.6% 2020 Median Value of Owner Occupied Housing Units $165,800 $345,433 $133,387 $247,577 $248,244 2020 % Renter Occupied Housing Units 42.8% 23.9% 61.7% 26.1% 33.7% 2020 % College/Graduate Degree Age 25+ 26.1% 59.8% 32.8% 56.6% 47.8% 2020 Median Age 37.0 37.5 32.5 35.6 35.4 Compiled by CBRE

DISCUSSION/ANALYSIS OF LAND SALES Land Sale One This comparable represents a 35.806-acre tract of land that is generally level with good visibility and access along Sam Furr Road. This site is east of NC-115 on the north side of Sam Furr Road. The site was zoned TR (Transitional Residential) when it was placed under contract. The buyers have had the site rezoned to MR-CD (Neighborhood Residential - Conditional Use) for development to a 320-unit independent living facility. The initial rezoning application was filed in June 2020. The land has access to all utilities and is located in a developing residential and commercial market area. The seller was motivated to liquidate this asset that was in their trust according to the listing broker. At the time of sale there was a single-family residential house and the land was half wooded and half cleared at time of sale given the house was a ranch style property. The site was purchased on February 5, 2021 for $3,900,000 or $108,920 per acre or $2.50 per square foot. The sale price equates to $12,188 per proposed unit based upon a density of 8.94 units per acre.

Land Sale Two The comparable represents a 5.808-acre site that is proposed for 150-unit multi-family garden property that will be located at 2104 Ashley Road in Charlotte, North Carolina. The property will consist of 3, three-story apartment buildings, 1, three/four-split story apartment building, and 2, two/three-split story apartment buildings. Construction is anticipated to begin in April 2021 and the project is expected to be complete by October 2022. The site is currently wooded land and will need to be cleared before development can begin. Upon completion of construction the property will be placed into service under the Section 42 Low-Income Housing Tax Credit (LIHTC) program for an initial 30-year period. 100% of the units (150 units) will be rent restricted and occupied by households with incomes at or below certain area median income (AMI) designations. The property sold to ECG Acquisitions, LLC for $1,580,000 or $10,533 per proposed unit. ECG Acquisitions, LLC entered into an assignment and assumption of purchase and sale agreement with ECG Ashley, LP, who will become owners of the subject property upon

Proposed Emery Village Apartments, Concord, North Carolina © 2021 CBRE, Inc. Land Value closing. The Developer will be a to be formed affiliate of Nashville-based Elmington Capital Group (ECG) and Horizon Development Properties, Inc. (HDP). Horizon Development Properties, Inc. (HDP), a wholly owned subsidiary of Inlivian (f/k/a/ the Charlotte Housing Authority), is a nonprofit development company.

Land Sale Three This is the sale of a 10.54-acre tract of land located along the north side of Ridge Road and the southwest side of Prosperity Ridge Road in Charlotte, Mecklenburg County, North Carolina. The tract is located just east of Prosperity Church Road and north of Interstate 485 in a developing area of northern Charlotte. The site was zoned R-3 when it went under contract. The buyer had the site rezoned to MUDD-O and approved for development to a 267-unit apartment complex with 8,000 square feet of ground floor commercial space. According to a press release the property will include 260 flats with an average size of 991 square feet as well as 7 rental townhouse units. Amenities will include a pool, club-room, fitness center, and dog park. The land sold in July 2020 for $2,150,000 or $200,000 per acre or $4.59 per square foot. The sale price equates to $8,052 per proposed unit based on a density of 25.33 units per acre.

Land Sale Four This comparable is a site for a proposed 144-unit multi-family garden property located at 8150 Weddington Road in Concord, North Carolina. The property consists of a 11.5-acre portion of a larger 48.7-acre site which is proposed to be developed with a 720-unit multifamily property. Weddington Hills of Concord, LLC is purchased the Phase I portion, consisting of 11.5-acres, for $1,500,000 in February 2020. Phase I will include 144-units, which equates to $10,417 per proposed unit. The PSA also includes options for the buyer to purchase Phases II & III for $2,000,000 and $1,500,000, respectively. The property will consist of 4, three-story apartment buildings along with a clubhouse and two detached garages.

SUMMARY OF ADJUSTMENTS Based on our comparative analysis, the following chart summarizes the adjustments warranted to each comparable.

LAND SALES ADJUSTMENT GRID

Comparable Number 1 2 3 4 Subject Transaction Type Sale Sale Sale Sale --- Transaction Date Feb-21 Dec-20 Jul-20 Feb-20 --- Proposed Use Residential Multifamily Multifamily Multifamily Multifamily development Actual Sale Price $3,900,000 $1,580,000 $2,150,000 $1,500,000 --- Adjusted Sale Price 1 $3,900,000 $1,580,000 $2,150,000 $1,500,000 --- Size (Acres) 35.81 5.81 10.75 11.50 8.61 Size (SF) 1,559,709 253,001 468,270 500,940 375,139 Density (UPA) 8.94 25.83 24.84 12.52 15.33 Allowable Units 320 150 267 144 132 Price Per Unit $12,188 $10,533 $8,052 $10,417 --- Price ($ Per Unit) $12,188 $10,533 $8,052 $10,417 Property Rights Conveyed 0% 0% 0% 0% Financing Terms 1 0% 0% 0% 0% Conditions of Sale 0% 0% 0% 0% Market Conditions (Time) 0% 0% 0% 0% Subtotal $12,188 $10,533 $8,052 $10,417 Size 0% 0% 0% 0% Shape 0% 0% 0% 0% Corner 0% 0% 0% 0% Frontage 0% 0% 0% 0% Topography 0% 0% 0% 0% Location -10% -10% -10% -10% Zoning/Density -5% 5%5%0% Utilities 0% 0% 0% 0% Highest & Best Use 0% 0% 0% 0% Total Other Adjustments -15% -5% -5% -10% Value Indication for Subject $10,359 $10,007 $7,650 $9,375 Absolute Adjustment 15% 15% 15% 10% 1 Adjusted sale price for cash equivalency and/or development costs (where applicable) Compiled by CBRE

 Market Conditions (Time) is considered for comparable sales that occurred under market conditions different from those applicable to the subject on the effective date of appraisal. An adjustment for market conditions is made if general property values have increased or decrease since the transaction dates

 Size considers the economies of scale principle when acquiring different size parcels of land. This adjustment is typically only applied when the site is being value on a price per square foot or acre basis. If valued on a price per unit, bedroom, door, square foot of building area, etc the buyer is not focused on the size of the site, but more on the allowable density; therefore, an adjustment is applied in the zoning/density category if necessary.

 Shape adjustments reflect the utility gained or lost by various shaped parcels, i.e. narrow slender site, a flag shaped site with narrow access or possibly a pie shaped site verse a rectangular site.

 Corner adjustments reflect the visibility and utility gained or lost by having a feature site at a corner location verse an interior site.

 Frontage adjustments are applied to reflect differences in the amount of linear distance along a given measurement, i.e. linear feet of water or street frontage.

 Topography adjustments are applied to reflect differences in the topographical features of a site (flat, rolling, steep slope, etc.). Topography can affect factors such as construction costs, drainage, visibility, etc.

 Location is considered for each comparable with relationship to primary traffic carriers, employment centers, and overall neighborhood demographics/characteristics

 Zoning/Density is analyzed in comparison to the subject for the level of construction that is allowed on the site. The greater number of units/rooms/etc allowable on a site typically reduces the prices paid per unit/room/etc.

 Utilities factors in the availability of public utilities (water, sewer, power, etc) to a site. If utilities are not available this can represent a cost to provide service.

 Highest & Best Use is considered for each comparable based on the planned use of the site as compared to the subject.

CONCLUSION Based on the preceding analysis, Comparable Four was given primary consideration due to the least amount of net and absolute adjustments required. In conclusion, a price per unit indication within the adjusted range was most appropriate for the subject. The following table presents the valuation conclusion:

CONCLUDED LAND VALUE $ Per Unit Subject Units Total $8,000 x 132 = $1,056,000 $10,000 x 132 = $1,320,000 Indicated Value: $1,250,000 (Rounded $ Per Unit) $9,470 Compiled by CBRE

Cost Approach

In estimating the replacement cost new for the subject, the following methods/data sources have been utilized (where available):

 the comparative unit method, utilizing the Marshall Valuation Service (MVS) cost guide, published by Marshall and Swift, LLC;  the subject’s actual construction costs (where available); and  actual/budget construction cost figures available for comparable properties.

MARSHALL VALUATION SERVICE Direct Cost Salient details regarding the direct costs are summarized in the Cost Approach Conclusion at the end of this section. The MVS cost estimates include the following:

1. average architect’s and engineer’s fees for plans, plan check, building permits and survey(s) to establish building line; 2. normal interest in building funds during the period of construction plus a processing fee or service charge; 3. materials, sales taxes on materials, and labor costs; 4. normal site preparation including finish grading and excavation for foundation and backfill; 5. utilities from structure to lot line figured for typical setback; 6. contractor’s overhead and profit, including job supervision, workmen’s compensation, fire and liability insurance, unemployment insurance, equipment, temporary facilities, security, etc.; 7. site improvements (included as lump sum additions); and 8. initial tenant improvement costs are included in MVS cost estimate. However, additional lease-up costs such as advertising, marketing and leasing commissions are not included. Base building costs (direct costs) are adjusted to reflect the physical characteristics of the subject. Making these adjustments, including the appropriate local and current cost multipliers, the direct building cost is indicated.

Additions Items not included in the direct building cost estimate include parking and walks, signage, landscaping, and miscellaneous site improvements. The cost for these items is estimated separately using the segregated cost sections of the MVS cost guide.

Indirect Cost Items Several indirect cost items are not included in the direct building cost figures derived through the MVS cost guide. These items include developer overhead (general and administrative costs), property taxes, legal and insurance costs, local development fees and contingencies, lease-up and marketing costs and miscellaneous costs.

MVS Conclusion The concluded direct and indirect building cost estimates obtained via the MVS cost guide are illustrated as follows:

MARSHALL VALUATION SERVICE COST SCHEDULE Primary Building Type: Multifamily Height per Story: 10' Effective Age: 0 YRS Number of Buildings: 4 Condition: Excellent Gross Building Area: 113,776 SF Exterior Wall: Hardiboard Net Rentable Area: 104,904 SF Number of Units: 132 Average Unit Size: 795 SF Number of Stories: 3 Average Floor Area: 37,925 SF

MVS Sec/Page 11/30 12/16 Quality/Bldg. Class Good/D Good/D Building Component Clubhouse Multiple Residences Component Sq. Ft. 3,316 SF 110,360 SF Base Square Foot Cost $124.00 $129.50

Square Foot Refinements Heating and Cooling $0.00 $0.00 Sprinklers $5.00 $2.00 Other $0.00 $0.00 Other $0.00 $0.00 Subtotal $129.00 $131.50

Height and Size Refinements Number of Stories Multiplier 1.000 1.000 Height per Story Multiplier 1.000 1.000 Floor Area Multiplier 1.042 0.927 Subtotal $134.42 $121.90

Cost Multipliers Current Cost Multiplier 1.07 1.08 Local Multiplier 0.90 0.90 Final Square Foot Cost $129.44 $118.49 Base Component Cost $429,238 $13,076,257

Base Building Cost (via Marshall Valuation Service cost data) $13,505,495 Additions Signage, Landscaping, Parking/Walks & Misc. Site Improvements (not included above) $1,010,000 Pump House $23,000 Appliances $2,000/Unit $264,000 Direct Building Cost $14,802,495

Indirect Costs 15.0% of Direct Building Cost $2,220,374 Direct and Indirect Building Cost $17,022,869 Rounded $17,023,000

Compiled by CBRE

ACTUAL/BUDGET COMPARABLE CONSTRUCTION COSTS The subject’s budgeted construction costs are illustrated in the following table, along with comparable cost information on a number of comparable properties. A detailed breakdown of the subject’s cost estimate has been included in the Addenda.

CONSTRUCTION COSTS Comparable: 1 2 3 Average Subject Multi-family Multi-family Multi-family Multi-family Property Type Garden Garden Garden Garden Year of Cost Data 2021 2021 2020 2021 Cost Data Based Upon… Budget Budget Budget Budget Number of Units: 282 198 144 208 132 Cost Component Direct Cost $44,663,750 $24,181,159 $16,433,000 $28,425,970 $13,654,874 Indirect Cost $4,498,000 $6,608,246 $1,717,000 $4,274,415 $2,555,408 Total Costs $49,161,750 $30,789,405 $18,150,000 $32,700,385 $16,210,281 Rounded $32,700,000 $16,210,000 Cost Per Unit $174,332 $155,502 $126,042 $151,959 $122,805 Compiled by CBRE

DIRECT AND INDIRECT COST CONCLUSION The indicated direct and indirect building costs for the subject are illustrated as follows:

DIRECT AND INDIRECT COST CONCLUSION Source Subject Estimate Per Unit MVS Cost Guide $17,023,000 $128,962 Cost Comparables (Avg.) n/a $151,959 Subject's Budget Cost Est. $16,210,000 $122,805 CBRE Estimate $16,210,000 $122,803 Compiled by CBRE

The estimates derived via MVS represent replacement cost while the subject’s budgeted figures represent reproduction costs. Each indicator is considered valid but given the specific nature of the subject’s budgeted costs this indication is given most weight in estimating cost conclusion for the subject.

ENTREPRENEURIAL PROFIT Entrepreneurial profit represents the return to the developer, and is separate from contractor’s overhead and profit.

ACCRUED DEPRECIATION There are essentially three sources of accrued depreciation:

1. physical deterioration, both curable and incurable; 2. functional obsolescence, both curable and incurable; and 3. external obsolescence.

Physical Deterioration The following chart provides a summary of the remaining economic life.

ECONOMIC AGE AND LIFE Actual Age 0 Years Effective Age 0 Years MVS Expected Life 50 Years Remaining Economic Life 50 Years Accrued Physical Incurable Depreciation 0.0% Compiled by CBRE

Functional Obsolescence Based on a review of the design and layout of the improvements, no forms of curable functional obsolescence were noted. Because replacement cost considers the construction of the subject improvements utilizing modern materials and current standards, design and layout, functional incurable obsolescence is not applicable.

External Obsolescence Based on a review of the local market and neighborhood, no forms of external obsolescence affect the subject.

COST APPROACH CONCLUSION The value estimate is calculated as follows.

COST APPROACH CONCLUSION Primary Building Type: Multifamily Height per Story: 10' Effective Age: 0 YRS Number of Buildings: 4 Condition: Excellent Gross Building Area: 113,776 SF Exterior Wall: Hardiboard Net Rentable Area: 104,904 SF Number of Units: 132 Average Unit Size: 795 SF Number of Stories: 3 Average Floor Area: 37,925 SF

Direct and Indirect Building Cost $16,210,000

Entrepreneurial Profit 15.0% of Total Building Cost $2,431,500

Replacement Cost New $18,641,500

Accrued Depreciation Incurable Physical Deterioration 0.0% of Replacement Cost New less $0 Curable Physical Deterioration Functional Obsolescence $0 External Obsolescence ($383,631) ($383,631) Total Accrued Depreciation 2.1% of Replacement Cost New ($383,631) Contributory Value of FF&E $0 Depreciated Replacement Cost $18,257,869

Land Value $1,250,000 Indicated Stabilized Value $19,507,869 Rounded $19,500,000 Lease-Up Discount ($226,000) One Time Concession (135,668) Indicated Value As Complete $19,146,200 Rounded $19,100,000 Remaining Cost to Complete ($11,072,610) Indicated Value As Is $8,027,390 Rounded $8,000,000 Value Per Unit $60,606

Compiled by CBRE

Insurable Replacement Cost

Insurable Replacement Cost is defined as follows:

1. the value of an asset or asset group that is covered by an insurance policy; can be estimated by deducting costs of noninsurable items (e.g., land value) from market value. 2. The estimated cost, at current prices as of the effective date of valuation, of a substitute for the building being valued, using modern materials and current standards, design, and layout for insurance coverage purposes guaranteeing that damaged property is replaced with new property (i.e., depreciation is not deducted). 7 CBRE, Inc. has followed traditional appraisal standards to develop a reasonable calculation based upon industry practices and industry-accepted publications such as the Marshall Valuation Service. The methodology employed is a derivation of the cost approach and is not reliable for Insurable Replacement Cost estimates. Actual construction costs and related estimates can vary greatly from this estimate.

The Insurable Replacement Cost estimate presented herein is intended to reflect the value of the destructible portions of the subject, based on the replacement of physical items that are subject to loss from hazards (excluding indestructible items such as basement excavation, foundation, site work, land value and indirect costs). In the case of the subject, this estimate is based upon the base building costs (direct costs) as obtained via the Marshall Valuation Service cost guide, with appropriate deductions.

This analysis should not be relied upon to determine proper insurance coverage as only consultants considered experts in cost estimation and insurance underwriting are qualified to provide an Insurable Replacement Cost. It is provided to aid the client/reader/user as part of their overall decision-making process and no representations or warranties are made by CBRE, Inc. regarding the accuracy of this estimate. It is strongly recommended that other sources be utilized to develop any estimate of Insurable Replacement Cost.

7 Appraisal Institute, The Dictionary of Real Estate Appraisal, 6th ed. (Chicago: Appraisal Institute, 2015), 119.

INSURABLE REPLACEMENT COST

Primary Building Type: Multifamily Height per Story: 10' Effective Age: 0 YRS Number of Buildings: 4 Condition: Excellent Gross Building Area: 113,776 SF Exterior Wall: Hardiboard Net Rentable Area: 104,904 SF Number of Units: 132 Average Unit Size: 795 SF Number of Stories: 3 Average Floor Area: 37,925 SF

MVS Sec/Page 00011/30 12/16 Quality/Bldg. Class 000Good/D Good/D Building Component 000Clubhouse Multiple Residences Component Sq. Ft. 0 SF 0 SF 0 SF 3,316 SF 110,360 SF Base Square Foot Cost $0.00 $0.00 $0.00 $124.00 $129.50

Square Foot Refinements Heating and Cooling $0.00 $0.00 $0.00 $0.00 $0.00 Sprinklers $0.00 $0.00 $0.00 $5.00 $2.00 Subtotal $0.00 $0.00 $0.00 $129.00 $131.50

Height and Size Refinements Number of Stories Multiplier 0.00 0.000 0.000 1.000 1.000 Height per Story Multiplier 0.00 0.000 0.000 1.000 1.000 Floor Area Multiplier 0.00 0.000 0.000 1.042 0.927 Subtotal $0.00 $0.00 $0.00 $134.42 $121.90

Cost Multipliers Current Cost Multiplier 0.00 0.00 0.00 1.07 1.08 Local Multiplier 0.00 0.00 0.00 0.90 0.90 Final Square Foot Cost $0.00 $0.00 $0.00 $129.44 $118.49 Base Component Cost $0 $0 $0 $429,238 $13,076,257

Base Building Cost (via Marshall Valuation Service cost data) $13,505,495

Insurable Exclusions 10.0% of Total Building Cost ($1,350,549)

Indicated Insurable Replacement Cost $12,154,945 Rounded $12,200,000 Value Per Unit $92,424

Compiled by CBRE

Sales Comparison Approach

The following map and table summarize the comparable data used in the valuation of the subject. A detailed description of each transaction is included in the addenda.

SUMMARY OF COMPARABLE MULTIFAMILY SALES Transaction YOC / Property No. Avg. Unit Distance Actual Sale Adjusted Sale Price Per NOI Per No. Property Name Type Date Reno'd Subtype Units Size from Subj Price Price 1 Unit 1 Occ. Unit OAR

1 Century Plantation Pointe, Sale May-21 2013 Multi-unit 260 896 18 Miles $51,000,000 $51,000,000 $196,154 95% $8,472 4.32% 100 Ervin Road Garden Mooresville, NC 28117

2 Preserve at Mountain Island Lake, Sale Jan-21 2018 Multi-unit 240 967 20 Miles $44,300,000 $44,300,000 $184,583 98% $8,480 4.59% 10410 Cooks Way Drive Garden Charlotte, NC 28216

3 Villas at Regal Manor, Sale Oct-20 2017 Multi-unit 144 1,193 31 Miles $27,050,000 $27,050,000 $187,847 97% $8,641 4.60% 1069 Chateau Crossing Drive Garden Fort Mill, SC 29715

4The Palmer, Sale Oct-20 2018 Multi-unit 318 921 27 Miles $63,000,000 $63,000,000 $198,113 93% $8,915 4.50% 7407 Dominion Park Lane Garden Charlotte, NC 28273

5 The Station at Poplar Tent, Sale Aug-20 2018 Multi-unit 312 1,139 4.7 Miles $59,000,000 $59,000,000 $189,103 90% $8,982 4.75% 50 Poplar Station Circle Garden Concord, NC 28027

Subj. Emery Village Apartments, ------2022 Multi- 132 795 ------95% $7,020 --- Pro 174 Emery Avenue Northwest family Forma Concord, NC 28104 Garden

1 Adjusted sale price for cash equivalency, lease-up and/or deferred maintenance (where applicable) Compiled by CBRE The sales utilized represent the best data available for comparison with the subject. They were selected from our research of comparable improved sales within the greater Charlotte region. These sales were chosen based upon recent transaction date, age/condition and providing similar utility to prospective owner.

Location Adjustments The following supplemental data was collected in order to provide additional support for the location adjustments:

IMPROVED SALES LOCATION ADJUSTMENT ANALYSIS

Comparable Number Subject 1 2 3 4 5 Address 174 Emery Avenue 100 Ervin Road 10410 Cooks 1069 Chateau 7407 Dominion 50 Poplar Northwest Way Drive Crossing Drive Park Lane Station Circle

Radius for Demographic Analysis 3 Mile Radius 3 Mile Radius 3 Mile Radius 3 Mile Radius 3 Mile Radius 3 Mile Radius

2020 Households 18,227 11,284 10,861 15,189 19,647 10,685 2020 Average Household Income $75,442 $103,518 $93,959 $104,597 $75,842 $112,029 AHI Relative to Subject --- 37.2% 24.5% 38.6% 0.5% 48.5% 2020 Median Value of Owner Occupied Housing Units $165,800 $328,810 $186,143 $247,006 $173,469 $244,470 2020 % Renter Occupied Housing Units 42.8% 30.9% 20.0% 30.3% 50.8% 26.6% 2020 % College/Graduate Degree Age 25+ 26.1% 44.1% 39.3% 46.6% 38.6% 42.5% 2020 Median Age 37.0 39.1 36.2 36.5 33.7 38.5 Compiled by CBRE

DISCUSSION/ANALYSIS OF IMPROVED SALES Improved Sale One Century Plantation Pointe is a 260 unit multifamily property located at 106 Plantation Pointe Loop in Mooresville, North Carolina. The property consists of 13 three-story multifamily buildings, and one clubhouse. The improvements were constructed in 2013 and are situated on a 22.23-acre site. At the time of sale the property was 94.6% occupied and is considered to be in good overall condition. The property was purchased in May 2021 for $51,000,000 or $196,154 per unit. The purchase price is reported by Walker & Dunlop. The property was not actively marketed, but the transaction is being facilitated off market by Phil Brosseau with Eastdil. We attempted but were unable to reach Mr. Brosseau via phone and email. Bell Properties is a very experienced national investor and 3rd party management company based in Greensboro with several apartment communities under management throughout the Charlotte area. Parker Nance, with Bell Partners noted that they liked the area and viewed the property as having value-add upside. Based on the trailing 12-month operations, including a 3% management fee and $350 per unit reserve allowance the purchase price indicates a 3.86% capitalization rate. Based on the appraiser's proforma, including a 2.5% management fee and $350 per unit reserve allowance, the purchase price results in a 4.32% capitalization rate.

Improved Sale Two Preserve at Mountain Island Lake is a 240-unit garden style apartment complex located in Charlotte, North Carolina with good proximity to Interstate 485. The property consists of 10 three-story buildings and one clubhouse building. The improvements were constructed in 2018 and are situated on a 19.88-acre site. Community amenities include a clubhouse, dog park, fitness center, swimming pool, and playground. Unit amenities include granite countertops and washer/dryer units. On January 29th, 2021, the property was purchased for $44,300,000, or $184,583 per unit. This purchase price indicates a cap rate of 4.27% based on the buyer's

Proposed Emery Village Apartments, Concord, North Carolina © 2021 CBRE, Inc. Sales Comparison Approach budget, which included $250 per unit in replacement reserves. It also indicates a cap rate of 4.59% based on available stabilized trailing data, which was an annualized T-4, inclusive of $200 per unit in replacement reserves. The property was 97.5% occupied at the time of sale, but it had recently finished its initial lease-up phase. The property was actively marketed by JLL. Andrea Howard, who was lead broker for JLL, noted that two offers came in higher among the 28 total offers, but the buyer won on the basis of quality.

Improved Sale Three Villas at Regal Manor is a 144-unit multi-family garden property located at in Fort Mill, South Carolina. The property consists of six predominantly three-story apartment buildings along with a clubhouse/leasing office and maintenance building. The improvements were constructed in 2017 and are situated on an 11.47-acre site. The property features a mix of two- and three-bedroom floor plans with an average unit size of 1,193 square feet. Community amenities include a swimming pool, playground, clubhouse, fitness center, laundry facility, grilling area and outdoor fire pit. Unit features include fully equipped kitchens with stainless-steel appliances, granite countertops, wood-like vinyl flooring, crown molding and washer/dryer connections. The property was purchased in October 2020 for $27,050,000 or $187,847 per unit. The Charlotte, NC based Capstone Apartment Partners, LLC brokerage team, led by Austin Green marketed the property on behalf of the owner. Based on the buyer’s year one budget the reported NOI was $1,244,300, which equates to a 4.6% capitalization rate.

Improved Sale Four The Palmer is a 318 unit garden style complex located off W Arrowood Road in Charlotte, North Carolina. This property was built at the end of 2018 and offers one-, two-, and three-bedroom units, with an average unit size of 921 square feet. Units feature quartz countertops, modern kitchen cabinets, wood-style plank flooring, stainless steel appliances, full size washer and dryers, tile backsplash, and patio/balcony. Community amenities include a swimming pool, clubhouse, fitness center, game room, grilling station, cyber cafe, pet park, pet wash, and outdoor areas. The property recently sold in October 2020 for $63,000,000 or $198,113 per unit. The broker indicated the property was 93% occupied at the time of the transaction are reported a cap rate of 4.50%, which equates to an NOI of $2,835,000. The purchase was the second in recent months by the purchaser and besides the Class A qualities and location of the site, the buyer lacked the size of the site to incorporate additional natural green space. We were unable to confirm the sale with the buyer, information was provided to us by the listing brokers with Walker & Dunlop.

Improved Sale Five The Station at Poplar Tent is a 312-unit multifamily project located along Poplar Tent Road in Concord, NC. The improvements were constructed in 2017 and first move in was June 2017. The property offers a mix of studio, one-, two- and three bedroom floor plans with an average unit size of 1,139 square feet. Community amenities include a pool, dog park, fitness center, outdoor fire pit, clubhouse, yoga studio, outdoor kitchen, and dog spa. Units feature quartz countertops,

tile backsplash, stainless steel appliances, 9' ceilings, and private patio/balconies. The property sold August 31, 2020 for $59,000,000, approximately $189,103 per unit. The broker with Cushman & Wakefield said the sale price was $59 million and the buyer reported a $57.5 million sale price, and is recorded with the county as such. The reasoning for the difference in the sale price was not confirmed but the broker was our source and utilized $59,000,000. The property had a 90% occupancy rate at the time of sale. The cap rate was reported at 4.75% which derived a $2,802,500 NOI.

SUMMARY OF ADJUSTMENTS Based on our comparative analysis, the following chart summarizes the adjustments warranted to each comparable.

MULTIFAMILY SALES ADJUSTMENT GRID Subj. Pro Comparable Number 12345 Forma Transaction Type Sale Sale Sale Sale Sale --- Transaction Date May-21 Jan-21 Oct-20 Oct-20 Aug-20 --- Year Built/Renovated 2013 2018 2017 2018 2018 2022 Multi-unit Multi-unit Multi-unit Multi-unit Multi-unit Multi-family Property Subtype Garden Garden Garden Garden Garden Garden No. Units 260 240 144 318 312 132 Avg. Unit Size 896 967 1,193 921 1,139 795 Actual Sale Price $51,000,000 $44,300,000 $27,050,000 $63,000,000 $59,000,000 --- Adjusted Sale Price 1 $51,000,000 $44,300,000 $27,050,000 $63,000,000 $59,000,000 --- Price Per Unit 1 $196,154 $184,583 $187,847 $198,113 $189,103 --- Occupancy 95% 98% 97% 93% 90% 95% NOI Per Unit $8,472 $8,480 $8,641 $8,915 $8,982 $7,020 OAR 4.32% 4.59% 4.60% 4.50% 4.75% --- Adj. Price Per Unit $196,154 $184,583 $187,847 $198,113 $189,103 Property Rights Conveyed 0% 0% 0% 0% 0% Financing Terms 1 0% 0% 0% 0% 0% Conditions of Sale 0% 0% 0% 0% 0% Market Conditions (Time) 0% 0% 0% 0% 0% Subtotal - Price Per Unit $196,154 $184,583 $187,847 $198,113 $189,103 Location -10% -10% -10% -10% -10% Project Size 0% 0% 0% 0% 0% Age/Condition 5%0%5%0%0% Quality of Construction 0% 0% 0% 0% 0% Avg. Unit Size -5% -5% -15% -5% -15% Project Amenities 0%0%0%0%0% Parking 0%0%0%0%0% Other 0%0%0%0%0% Total Other Adjustments -10% -15% -20% -15% -25% Indicated Value Per Unit $176,538 $156,896 $150,278 $168,396 $141,827 Absolute Adjustment 20% 15% 30% 15% 25% 1 Adjusted for cash equivalency, lease-up and/or deferred maintenance (where applicable) Compiled by CBRE

 Market Conditions (Time) is considered for comparable sales that occurred under market conditions different from those applicable to the subject on the effective date of appraisal.

An adjustment for market conditions is made if general property values have increased or decrease since the transaction dates

 Location is considered for each comparable with relationship to primary traffic carriers, employment centers, and overall neighborhood demographics/characteristics

 Comparables One, Two, Three and Four were adjusted downward for their superior overall neighborhood demographics/characteristics

 Comparable Four was adjusted downward for its proximity to employment and surrounding developments

 Project size takes into account the economies of scale of investing in a smaller property (<100-units) verse a larger property (500+ units) with respect to investment efficiencies (investor pool, money placement, etc).

 Age/condition is analyzed in comparison to the subject for the actual year of construction and to account for any renovations/upgrades (interior or exterior) performed.

 Comparables One and Three were adjusted upward for its older year of construction

 Quality of construction is a variable to account for interior and exterior finishes and building quality (exterior brick verse siding or laminate verse solid surface counters).

 Average unit size is considered for each comparable because the larger the unit square footage the higher price per unit. Typically, an adjustment of roughly 5% per 100 square feet difference is applied to the comparables, but the law of diminishing returns applies as units because significantly larger.

 All comparables were adjusted downward for the larger average unit size

 Project amenities vary between properties and this category is utilized for comparison between amenities (clubhouse, pool, fitness center, etc) offered at each comparable when compared to the subject.

 Parking is considered to account for variances in parking ranging from garages to structured parking

 Other

Overall, Comparables Two and Four were given greatest consideration because the least net and absolute adjustment was required. Comparable Five was also given consideration due to its proximity to the subject.

SALES COMPARISON APPROACH CONCLUSION The following table presents the estimated value for the subject as indicated by the sales comparison approach.

SALES COMPARISON APPROACH

Total Units X Value Per Unit = Value 132 X $140,000 = $18,480,000 132 X $160,000 = $21,120,000

VALUE CONCLUSION Indicated Stabilized Value $19,800,000 Lease-Up Discount (226,000) One Time Concession (135,668) As Complete Market Value $19,438,332 Rounded $19,400,000 Remaining Cost to Complete (11,072,610) Indicated Value As Is $8,365,722 Rounded $8,400,000 Value Per Unit $63,636

Compiled by CBRE

Income Capitalization Approach

The following map and table summarize the primary comparable data used in the valuation of the subject. A detailed description of each transaction is included in the addenda.

SUMMARY OF COMPARABLE MULTIFAMILY RENTALS YOC / No. Distance Avg. Rent No. Property Name Location Reno'd Property Subtype Occ. Units from Subj Per Unit

1 The Bridges of Cabarrus 101 Three Mile Loop 2021 Multi-unit Garden 84% 240 1.2 Miles $1,199 Kannapolis, NC 28083

2 Coddle Creek Apartments 2024 Barr Road 2020 Multi-unit Garden 46% 328 3.7 Miles $1,363 Concord, NC 28027

3 Hawthorne at the Glen 6255 Fernwood Drive 2019 Multi-unit Garden 98% 254 3.7 Miles $1,424 Concord, NC 28027

4 Laurel View 350 Joshua Place NW 2018 Multi-unit Garden 96% 174 3.6 Miles $1,277 Concord, NC 28027

5 Legacy Concord 5020 Avent Drive NW 2016 Multi-unit Garden 97% 348 3.7 Miles $1,507 Concord, NC 28027

6 The Station at Poplar Tent 50 Poplar Station Circle 2018 Multi-unit Garden 97% 312 4.7 Miles $1,393 Concord, NC 28027

7 Skybrook Apartment Homes 90 Oak Hill Court 2018 Multi-unit Garden 96% 268 8.4 Miles $1,604 Huntersville, NC 28078

Subj. Emery Village Apartments 174 Emery Avenue Northwest, 2022 Multi-family 48% 132 --- $1,069 Concord, North Carolina Garden

Compiled by CBRE The rentals utilized represent the best data available for comparison with the subject. They were selected from our research within the immediate subject neighborhood. These comparables were chosen based upon proximity to the subject and offering similar utility to prospective tenants.

DISCUSSION/ANALYSIS OF RENT COMPARABLES Rent Comparable One The Bridges of Cabarrus is a 240-unit multifamily project located in Kannapolis, NC. The improvements were constructed in 2021 and the first move-ins were in March 2021. The property offers a mix of one-, two- and three bedroom floor plans with an average unit size of 1,068 square feet. Community amenities include a pool, fitness center, clubhouse, grilling area, dog park, community lounges, green space, and on site storage units. Units feature WD connections, tile backsplash, granite countertops, SS appliances, vinyl flooring, and ceiling fans. Average rent is $1,199 which equates to $1.12 per square foot. The tenant is responsible for the payment of all utilities. Rent premiums include a monthly $75 amenity fee that covers trash, internet, and package fee and there are two different size storage units available for $35 and $75. At the time of the survey, management was not offering any concession. Management reported occupancy at 84.03% with 100% preleased.

Rent Comparable Two Coddle Creek Apartments is a 328-unit multifamily project located in Concord, NC. The improvements were constructed in 2020 and the first move-ins were in November 2020. The property offers a mix of one-, two- and three bedroom floor plans with an average unit size of 1,003 square feet. Community amenities include a pool, fitness center, clubhouse, grilling area, dog park, community lounges, and a business center. Units feature WD connections, tile backsplash, granite countertops, SS appliances, and vinyl flooring. Average rent is $1,363 which equates to $1.36 per square foot. The tenant is responsible for the payment of all utilities. Rent premiums include $10 for trash removal and there are garages and storage units available for rent that rent for $150 and $75 respectively. At the time of the survey, management was not offering any concessions. Management reported occupancy at 45.71% with 76.38% preleased.

Rent Comparable Three Hawthorne at the Glen is a 254-unit multifamily project located along Fernwood Road just north of I-85 & George W Liles Parkway in Concord, NC. The improvements were constructed in 2019 and the first move-ins were in November 2019. The property offers a mix of one-, two- and three bedroom floor plans with an average unit size of 1,032 square feet. Community amenities include a pool, fitness center, outdoor kitchen, dog park, cyber cafe, clubhouse, and playground. Units feature WD units, tile backsplash, granite countertops, SS appliances, vinyl flooring, and ceiling fans. Average rent is $1,424 which equates to $1.38 per square foot. The tenant is responsible for the payment of all utilities. Rent premiums include $20 to $30 for higher floors and there is a $33 per month fee for trash & pest control. At the time of the survey, management was not offering any concession. Management reported occupancy at 98.4%.

Rent Comparable Four Laurel View is a 174-unit garden apartment located in Concord, North Carolina. The property was constructed in 2018 and features a mix of one-, two- and three-bedroom floor plans with an

Proposed Emery Village Apartments, Concord, North Carolina © 2021 CBRE, Inc. Income Capitalization Approach average unit size of 1,058-square feet. Community amenities include a swimming pool, poolside cabana and grilling area, fenced-in dog park, pet spa, 5,000-square foot clubhouse with fitness center and package lockers. Units feature plank flooring, fully equipped kitchens with stainless steel appliances, patio/balcony, granite countertops and washer/dryer connections. Average rent per unit is $1,277, which equates to $1.21 per square foot. Tenants are responsible for the payment of all utilities and there is an additional $33 monthly premium for valet trash and pest control. The property is currently 96% occupied and did not report any concessions.

Rent Comparable Five Legacy Concord Apartments is a 348-unit multifamily property located in Concord, North Carolina. The improvements were constructed in 2016 and feature a mix of one-, two- and three-bedroom floor plans with an average unit size of 1,117 square feet. Unit amenities including quartz counters in kitchens, marble counter tops in baths, 42" kitchen wall cabinets, 9 foot ceilings, garden soaking tubs, designer flooring and light fixtures, patios/balconies with storage, and other upscale features found in high-end homes. Community amenities include bocce ball, outdoor billiards, fire pit, saltwater swimming pool with swim lanes, fitness center with virtual training, business center, and clubhouse. Current rents average $1,507 per month which equates to $1.35 per square foot. There is an additional $25 premium for Trash & Pest Control. At the time of our survey, management was not offering any concessions and the property is currently 97.1% occupied.

Rent Comparable Six The Station at Poplar Tent is a 312-unit multifamily project located along Poplar Tent Road in Concord, NC. The improvements were constructed in 2017 and first move in was June 2017. The property offers a mix of studio, one-, two- and three bedroom floor plans with an average unit size of 1,139 square feet. Community amenities include a pool, dog park, fitness center, outdoor fire pit, clubhouse, yoga studio, outdoor kitchen, and dog spa. Units feature quartz countertops, tile backsplash, stainless steel appliances, 9' ceilings, and private patio/balconies. Average rent is $1,393 which equates to $1.22 per square foot. The tenant is responsible for the payment of all utilities except for water. Rent premiums include and $90 fee which covers cable, internet, trash, and pest control. At the time of the survey, management was not offering any concessions and occupancy was reported at 97.3%.

Rent Comparable Seven

Skybrook Apartment Homes is a 268 unit apartment community located in Huntersville, NC. The improvements were built in 2018 and offer one, two, and three bedroom units with an average square footage of 1,071 square feet. Property amenities include a yoga studio, fitness center, package acceptance lockers, saltwater pool, dog park, car wash, game room, outdoor resident lounge, and playground. Units include crown molding, wood plank flooring, quartz counter tops, stainless steel appliances, and water/dryer units. Average rent per unit $1,604, which equates to $1.50 per square foot. No utilities are included in rent and there is a bundle for cable, internet,

Proposed Emery Village Apartments, Concord, North Carolina © 2021 CBRE, Inc. Income Capitalization Approach trash, and pest control for $80 to $90 depending on floor. At the time of survey, management was not offering any specials and reported a current occupancy of 95.9%.

 Location is considered for each comparable with relationship to primary traffic carriers, employment centers, and overall neighborhood demographics/characteristics

 Average unit size is considered for each comparable on a rent per unit basis (does not affect rent per square foot) due to the larger the unit size the more monthly rent is generated, but the law of diminishing returns applies once a unit reaches certain size for each bedroom count.

 Age/condition is analyzed in comparison to the subject for the actual year of construction and to account for any renovations/upgrades (interior or exterior) performed.

 Quality of finish is a variable to account for interior and exterior finishes and building quality (exterior brick verse siding or laminate verse solid surface counters)

 Parking is considered to account for variances in parking ranging from garages to structured parking

 Amenities vary between properties and this category is utilized for comparison between amenities offered at each comparable when compared to the subject.

SUBJECT RENTAL INFORMATION The following table shows the subject’s unit mix and quoted rental rates.

SUBJECT RENTAL INFORMATION No. of Unit Avg. Quoted Rent Type Units Size (SF) $/Unit Per SF 1BR/1BA 36 658 $850 $1.29 2BR/2BA 96 846 $1,050 $1.24 Total/Average: 132 795 $995 $1.25 Compiled by CBRE

 Tenants will be directly responsible for the payment of electricity, cable/internet and water/sewer (sub-metered)

 Trash will be billed in addition to the base rent

MARKET RENT ESTIMATE In order to estimate the market rates for the various floor plans, the subject unit types have been compared with similar units in the comparable projects. The following is a discussion of each unit type.

One-Bedroom Units

SUMMARY OF COMPARABLE RENTALS ONE BEDROOM UNITS Rental Rates Comparable Plan Type Size (SF) $/Mo. $/SF The Bridges of Cabarrus 1BR / 1BA 923 SF $1,070 $1.16 Subject (Avg. Quoted) 1BR/1BA 658 SF $850 $1.29 Laurel View 1BR/1BA 816 SF $1,135 $1.39 The Station at Poplar Tent 1BR/1BA 869 SF $1,262 $1.45 The Station at Poplar Tent 1BR/1BA 717 SF $1,055 $1.47 Subject (Concluded Mkt. ) 1BR/1BA 658 SF $985 $1.50 Skybrook Apartment Homes 1BR/1BA 883 SF $1,333 $1.51 Hawthorne at the Glen 1BR / 1BA 776 SF $1,237 $1.59 Coddle Creek Apartments 1BR / 1BA 710 SF $1,150 $1.62 The Station at Poplar Tent 1BR/1BA 724 SF $1,176 $1.62 Coddle Creek Apartments 1BR / 1BA 618 SF $1,105 $1.79 Coddle Creek Apartments 1BR / 1BA 601 SF $1,120 $1.86 Legacy Concord 1BR/1BA 665 SF $1,275 $1.92

Compiled by CBRE

The developer’s quoted rate is below the range on a monthly basis and towards the lower end of the range on a per square foot basis. Considering the subject’s new construction, unit size and proposed finishes a market rent towards the middle of the per square foot range has been concluded. We note that the estimate is still below the range on a monthly basis which appears reasonable based on the unit size.

Two-Bedroom Units

SUMMARY OF COMPARABLE RENTALS TWO BEDROOM UNITS Rental Rates Comparable Plan Type Size (SF) $/Mo. $/SF The Bridges of Cabarrus 2BR / 2BA 1,285 SF $1,335 $1.04 Legacy Concord 2BR/2BA 1,220 SF $1,330 $1.09 The Bridges of Cabarrus 2BR / 2BA 1,151 SF $1,270 $1.10 Legacy Concord 2BR/2BA 1,282 SF $1,435 $1.12 Laurel View 2BR/2BA 1,133 SF $1,298 $1.15 The Bridges of Cabarrus 2BR / 2BA 1,000 SF $1,150 $1.15 The Station at Poplar Tent 2BR/2BA 1,198 SF $1,415 $1.18 The Station at Poplar Tent 2BR/2BA 1,270 SF $1,516 $1.19 The Station at Poplar Tent 2BR/2BA 1,198 SF $1,420 $1.19 Coddle Creek Apartments 2BR / 2BA 1,119 SF $1,370 $1.22 Coddle Creek Apartments 2BR / 2BA 1,168 SF $1,440 $1.23 The Station at Poplar Tent 2BR/2BA 1,213 SF $1,487 $1.23 Subject (Avg. Quoted) 2BR/2BA 846 SF $1,050 $1.24 Hawthorne at the Glen 2BR / 2BA 1,347 SF $1,681 $1.25 Coddle Creek Apartments 2BR / 2BA 1,032 SF $1,305 $1.26 Hawthorne at the Glen 2BR / 2BA 1,329 SF $1,670 $1.26 Hawthorne at the Glen 2BR / 2BA 1,191 SF $1,520 $1.28 Legacy Concord 2BR/2BA 1,143 SF $1,480 $1.29 Legacy Concord 2BR/2BA 1,080 SF $1,405 $1.30 Hawthorne at the Glen 2BR / 2BA 1,114 SF $1,454 $1.31 Hawthorne at the Glen 2BR / 2BA 1,169 SF $1,531 $1.31 Subject (Concluded Mkt. ) 2BR/2BA 846 SF $1,125 $1.33 Skybrook Apartment Homes 2BR/2BA 1,126 SF $1,655 - $1,687 $1.48 Skybrook Apartment Homes 2BR/2BA 1,114 SF $1,670 $1.50

Compiled by CBRE

The developer’s quoted rate is below the range on a monthly basis and towards the middle of the range on a per square foot basis. Considering the subject’s new construction, unit size and proposed finishes a market rent towards the upper portion of the per square foot range has been concluded. We note that the estimate is below the range on a monthly basis which appears reasonable based on the unit size.

MARKET RENT CONCLUSIONS The following chart shows the market rent conclusions for the subject:

RENT CONCLUSIONS - MARKET VALUE No. Unit Monthly Rent Annual Rent Annual Units Unit Type Size (SF) Total SF $/Unit $/SF PRI $/Unit $/SF Total 36 1BR/1BA 658 23,688 $985 $1.50 $35,460 $11,820 $17.96 $425,520 96 2BR/2BA 846 81,216 $1,100 $1.30 $105,600 $13,200 $15.60 $1,267,200 132 795 104,904 $1,069 $1.34 $141,060 $12,824 $16.14 $1,692,720 Compiled by CBRE

The estimate of market rent is reflective of current market conditions, while the value date is as of a prospective date. While our market analysis suggests a considerable potential for rental rate growth, we also note an equal potential for inventory gains, which will provide for market disequilibrium, which has historically been addressed through rental concessions.

For this reason, a rental rate growth through the prospective dates of value is estimated at 1.73%, which is based on the inflation over the last 10-years. We believe rent growth above the rate of inflation is speculative given the level of new construction and growing competition in the market.

RENT ADJUSTMENTS Rent adjustments are sometimes necessary to account for differences in rental rates applicable to different units within similar floor plans due to items such as location within the property, view, and level of amenities. These rental adjustments may be in the form of rent premiums or rent discounts.

We have utilized the weighted average rental rates provided by the developer. Thus, no rent adjustments are required.

POTENTIAL RENTAL INCOME CONCLUSION Within this analysis, potential rental income is estimated based upon the prospective market rent.

OPERATING HISTORY The following table presents available operating data for the subject.

OPERATING HISTORY

Un-Trended Developer's Budget Pro Forma Year-Occupancy (Un-Trended) 90.0% Market Value 95.0% Total % EGI $/Unit Total % EGI $/Unit INCOME - MAIN COMPONENT Potential Rental Income $1,576,800 111.1% $11,945 $1,692,720 98.2% $12,824 Loss to Lease - 0.0% - - 0.0% - Concessions - 0.0% - - 0.0% - Adjusted Rental Income $1,576,800 111.1% $11,945 $1,692,720 98.2% $12,824 Vacancy (157,680) -11.1% (1,195) (84,636) -4.9% (641) Credit Loss - 0.0% - (16,927) -1.0% (128) Net Rental Income $1,419,120 100.0% $10,751 $1,591,157 92.3% $12,054 Other Income - 0.0% - 66,000 3.8% 500 Other Reimbursed Income - 0.0% - 22,334 1.3% 169 RUBS/Utility Income - 0.0% - 44,880 2.6% 340 Subtotal Other Income (Net) - 0.0% $0 133,214 7.7% $1,009 Effective Gross Income - Total $1,419,120 100.0% $10,751 $1,724,371 100.0% $13,063 EXPENSE Real Estate Taxes $145,200 10.2% $1,100 $250,123 14.5% $1,895 Property Insurance 50,417 3.6% 382 33,000 1.9% 250 Natural Gas - 0.0% - - 0.0% - Electricity - 0.0% - 26,400 1.5% 200 Water & Sewer - 0.0% - 52,800 3.1% 400 Cable Television - 0.0% - - 0.0% - Trash Removal - 0.0% - 13,200 0.8% 100 Administrative & General 20,000 1.4% 152 33,000 1.9% 250 Repairs & Maintenance - 0.0% - 46,200 2.7% 350 Painting & Decorating - 0.0% - 26,400 1.5% 200 Grounds (Landscaping) 30,000 2.1% 227 26,400 1.5% 200 Security - 0.0% - - 0.0% - Management Fee 113,530 8.0% 860 51,731 3.0% 392 Administrative Payroll - 0.0% - 82,500 4.8% 625 Maintenance Payroll - 0.0% - 56,100 3.3% 425 Employee Taxes & Benefits - 0.0% - 33,000 1.9% 250 Non-Revenue Units - 0.0% - 12,824 0.7% 97 Advertising & Leasing - 0.0% - 36,300 2.1% 275 Replacement Reserves 26,400 1.9% 200 26,400 1.5% 200 Total Operating Expenses $385,547 27.2% $2,921 $806,378 46.8% $6,109 Net Operating Income $1,033,573 72.8% $7,830 $917,993 53.2% $6,954 Management Fee % of EGI) 8.0% 3.0%

Source: Operating statements

LOSS TO LEASE Within the local market, buyers and sellers typically recognize a reduction in potential rental income due to the difference between market and contract rental rates. In this market, lease rates are typically flat and are anticipated to roll to market every 12 months on average. As a result, actual collections typically lag behind market rates by approximately 6 months. Given that the subject is a proposed project, no loss to lease is present, or has been estimated.

CONCESSIONS There are basically two schools of thought when it comes to quoting rental rates in the apartment market which makes blanket overall estimates of economic occupancy difficult. Some property managers and owners prefer to always quote higher “market rents” and lower “specials” regardless of occupancy and market conditions. Others quote net effective rental rates without any rebates or concessions regardless of occupancy and market conditions. There has also been increased use of daily pricing software which changes rental rates daily without quoting any concessions.

For example, some managers prefer to quote $1,000 per month rent with a “current special rate of $800 per month”, while another manager will simply quote $800 per month to prospective tenants. While the net effective rental rates are both $800 per month, it indicates two vastly different levels of economic occupancy if concessions are reported in the operating history.

The different marketing methodologies frequently results in confusion when market participants and underwriters try to determine overall economic occupancy in the apartment market. Given there is no consistency in marketing methodologies and there is increased use of daily rent pricing software, there is no true way of accurately calculating economic occupancy for the overall market.

Rent concessions for properties in lease-up are currently prevalent in the local market in the form of one to three months of free rent. The developer’s budget does not indicate if concessions will be offered; however, to compete the subject will likely need to offer some form of concession.

For the purposes of this analysis, one-month of free rent during the initial lease-up phase has been utilized. Therefore, we have concluded a concession amount for the subject which equates to the gross monthly potential rental income based on the concluded market rates (trended). Considering that the concession is being offered as a one-time special in order to facilitate the initial lease-up, the concession amount has been deducted as a line item in each approach in order to render an “as is” value estimate.

The following table shows the calculation:

CONCESSION CALCULATION No. Units to Lease (during Period Monthly Rent lease-up) Total 1 Months x $1,093 x 124 = $135,668 Compiled by CBRE

VACANCY The subject’s estimated stabilized occupancy rate was previously discussed in the market analysis. The subject’s vacancy is detailed as follows:

VACANCY Year Total % of AGI Developer's Budget (Un-Trended) ($157,680) 10.0% CBRE Estimate - Market Value ($84,636) 5.0% CBRE Estimate - Prospective Market Value ($86,597) 5.0% Compiled by CBRE

CREDIT LOSS The credit loss estimate is an allowance for nonpayment of rent or other income. The subject’s credit loss is detailed as follows:

CREDIT LOSS Year Total % of AGI Developer's Budget (Un-Trended) $0 0.0% CBRE Estimate - Market Value ($16,927) 1.0% CBRE Estimate - Prospective Market Value ($17,319) 1.0% Compiled by CBRE

OTHER INCOME Other income is supplemental to that derived from leasing of the improvements. This includes categories such as forfeited deposits, vending machines, late charges, etc. The subject’s income is detailed as follows:

OTHER INCOME Year Total $/Unit/Yr Developer's Budget (Un-Trended) $0 $0 Comparable 1 --- $338 Comparable 2 --- $612 Comparable 3 --- $618 CBRE Estimate - Market Value $66,000 $500 CBRE Estimate - Prospective Market Value $66,000 $500 Compiled by CBRE

The primary source of other income is administrative fees, damages fees, termination fees, late fees, and pet rent. The estimate is consistent with other properties operating in the area. The developer's budget does not appear to account for this category. Other income has not been trended in the prospective analysis as this income item is expected to remain flat during the stabilization period.

OTHER REIMBURSED INCOME The market typically charges additional fees for trash, valet trash and pest control. The estimated other reimbursed income taking into account the concluded vacancy and credit loss is estimated as follows:

POTENTIAL GROSS OTHER REIMBURSED INCOME Monthly Monthly Annual Component No. Units Occupancy Rate Total Total Trash 132 $15.00 94.0% $1,861 $22,334 Total $1,861 $22,334 Compiled by CBRE The subject’s other reimbursed income is detailed as follows:

OTHER REIMBURSED INCOME Year Total $/Unit/Yr Developer's Budget (Un-Trended) $0 $0 CBRE Estimate - Market Value $22,334 $169 CBRE Estimate - Prospective Market Value $22,334 $169 Compiled by CBRE

The developer's budget did not include a breakout of the additional fees and appear to be included as a deduction from the expenses. The estimate is based on the market oriented fees taking into account the vacancy and collection loss estimate. Other reimbursed income has not been trended in the prospective analysis as this income item is expected to remain flat during the stabilization period.

UTILITY INCOME The subject will be sub metered for water and sewer with the tenant reimbursing the landlord for usage. The subject’s utility income is detailed as follows:

RUBS/UTILITY INCOME Year Total $/Unit/Yr Developer's Budget (Un-Trended) $0 $0 CBRE Estimate - Market Value $44,880 $340 CBRE Estimate - Prospective Market Value $46,672 $354 Compiled by CBRE

An estimate which is based on an 85% capture rate of the water/sewer expense has been included. Typically, properties in the market can capture between 80% and 90% of the water/sewer expense. The developer indicated that water/sewer will be sub-metered and it appears as though it has been included as a deduction from the estimated expenses.

EFFECTIVE GROSS INCOME The subject’s effective gross income is detailed as follows:

EFFECTIVE GROSS INCOME - TOTAL Year Total $/Unit/Yr Developer's Budget (Un-Trended) $1,419,120 $10,751 CBRE Estimate - Market Value $1,724,371 $13,063 CBRE Estimate - Prospective Market Value $1,763,025 $13,356 Compiled by CBRE

The pro forma estimate is above the developer's budget due to the missing information pertaining to other income sources; however, each estimate is supported on a line item basis.

OPERATING EXPENSE ANALYSIS In this analysis, we have estimated the expenses as of the date of the appraisal based on the expense comparables, which provide current indications of expense levels in the market. While trending the expenses forward to the date of stabilization we have utilized an inflation rate of 2.98% to arrive at the “stabilized estimate”. Based on the survey shown in the following table this appears reasonable:

SUMMARY OF GROWTH RATES Investment Type Expenses Inflation

U.S. Bureau of Labor Statistics (CPI-U) 10-Year Snapshot Average as of Apr-21 1.73%

PwC Apartment National Data 2.98% n/a Compiled by: CBRE

Understanding the subject will be stabilized approximately 1.33-years from the date of value each expense category has been trended accordingly.

Expense Comparables The following chart summarizes expenses obtained from recognized industry publications and/or comparable properties.

EXPENSE COMPARABLES

Comparable Number 1 2 3 Subject Location Charlotte MSA Charlotte MSA Southeast Concord, NC Unit Range 201 - 300 201 - 300 101 - 200 132 Vintage 2010's 2010's 2010's 2022 Type Garden Garden Garden Garden Period T-12 (6/20) T-12 (7/20) 2020 Pro Forma Revenues $/Unit $/Unit $/Unit $/Unit Effective Gross Income - Total $13,053 $14,380 $17,471 $13,063 Expenses Real Estate Taxes $1,290 $1,223 $1,006 $1,895 Property Insurance 220 301 113 250 Natural Gas 2 0 5 - Electricity 204 192 359 200 Water & Sewer 261 410 384 400 Cable Television - - - - Trash Removal 270 230 189 100 Administrative & General 174 329 724 250 Repairs & Maintenance 400 309 615 350 Painting & Decorating 128 193 258 200 Grounds (Landscaping) 75 271 212 200 Security - - 13 - Management Fee 314 424 530 392 Administrative Payroll 631 601 607 625 Maintenance Payroll 506 413 605 425 Employee Taxes & Benefits 219 220 433 250 Non-Revenue Units 88 126 137 97 Advertising & Leasing 379 264 369 275 Replacement Reserves - - - 200 Total Operating Expenses $5,162 $5,507 $6,558 $6,109 Operating Expenses Excluding Taxes 3,872 4,284 5,552 4,214 Operating Expense Ratio 39.5% 38.3% 37.5% 46.8% Management Fee % of EGI) 2.4% 3.0% 3.0% 3.0% ² The median total differs from the sum of the individual amounts.

Compiled by CBRE A discussion of each expense category is presented on the following pages.

Real Estate Taxes The comparable data and projections for the subject are summarized as follows:

REAL ESTATE TAXES Year Total $/Unit/Yr Developer's Budget (Un-Trended) $145,200 $1,100 Expense Comparable 1 --- $1,290 Expense Comparable 2 --- $1,223 Expense Comparable 3 --- $1,006 CBRE Estimate - Market Value $250,123 $1,895 CBRE Estimate - Prospective Market Value $260,111 $1,971 Compiled by CBRE

Please refer to the tax analysis section for detailed discussion of the estimated tax liability. Property Insurance Property insurance expenses typically include fire and extended coverage and owner’s liability coverage. The comparable data and projections for the subject are summarized as follows:

PROPERTY INSURANCE Year Total $/Unit/Yr Developer's Budget (Un-Trended) $50,417 $382 Expense Comparable 1 --- $220 Expense Comparable 2 --- $301 Expense Comparable 3 --- $113 CBRE Estimate - Market Value $33,000 $250 CBRE Estimate - Prospective Market Value $34,318 $260 Compiled by CBRE

We have concluded $250 per unit for the subject's property insurance, which is within the range of the expense comparables. The present day market value estimate is trended through the date of stabilization for the prospective market value.

Natural Gas The subject did not report an expense for this category; therefore, an estimate is not included going forward.

Electricity Electricity expenses are typically very property specific, and comparables offer a minimal indication of an appropriate level. We have found the best indication of this expense is the subject’s recent historical and budgeted level. The comparable data and projections for the subject are summarized as follows:

ELECTRICITY Year Total $/Unit/Yr Developer's Budget (Un-Trended) $0 $0 Expense Comparable 1 --- $204 Expense Comparable 2 --- $192 Expense Comparable 3 --- $359 CBRE Estimate - Market Value $26,400 $200 CBRE Estimate - Prospective Market Value $27,454 $208 Compiled by CBRE

We have concluded $200 per unit for the subject's electricity, which is within the range of the expense comparables. The present day market value estimate is trended through the date of stabilization for the prospective market value.

Water & Sewer As with the other utility expenses, water and sewer costs are typically very property specific. This expense has increased during recent years, which is a function of normal inflationary pressures. This expense typically ranges from approximately $300 to $600 per unit annually, with most properties being toward the middle to lower end of the range. Further, a large portion of this expense is reimbursed in the utility income category due to the subject being sub-metered. The comparable data and projections for the subject are summarized as follows:

WATER & SEWER Year Total $/Unit/Yr Developer's Budget (Un-Trended) $0 $0 Expense Comparable 1 --- $261 Expense Comparable 2 --- $410 Expense Comparable 3 --- $384 CBRE Estimate - Market Value $52,800 $400 CBRE Estimate - Prospective Market Value $54,908 $416 Compiled by CBRE

We have concluded $400 per unit for the subject's water & sewer, which is within the range of the expense comparables. The present day market value estimate is trended through the date of stabilization for the prospective market value.

Cable Television The subject did not report an expense for this category; therefore, an estimate is not included going forward.

Trash Removal The subject’s weekly refuse services are provided by a local contractor. The comparable data and projections for the subject are summarized as follows:

TRASH REMOVAL Year Total $/Unit/Yr Developer's Budget (Un-Trended) $0 $0 Expense Comparable 1 --- $270 Expense Comparable 2 --- $230 Expense Comparable 3 --- $189 CBRE Estimate - Market Value $13,200 $100 CBRE Estimate - Prospective Market Value $13,727 $104 Compiled by CBRE

The subject will not offer valet trash services, therefore an estimate below the range has been included. The present day market value estimate is trended through the date of stabilization for the prospective market value.

Administrative & General Administrative expenses typically include legal costs, accounting, items which are not provided by off-site management, telephone, supplies, furniture, and temporary help. The comparable data and projections for the subject are summarized as follows:

ADMINISTRATIVE & GENERAL Year Total $/Unit/Yr Developer's Budget (Un-Trended) $20,000 $152 Expense Comparable 1 --- $174 Expense Comparable 2 --- $329 Expense Comparable 3 --- $724 CBRE Estimate - Market Value $33,000 $250 CBRE Estimate - Prospective Market Value $34,318 $260 Compiled by CBRE

We have concluded $250 per unit for the subject's administrative & general, which is within the range of the expense comparables. The present day market value estimate is trended through the date of stabilization for the prospective market value.

Repairs & Maintenance This expense category includes the cost of routine repairs to the apartment units. The comparable data and projections for the subject are summarized as follows:

REPAIRS & MAINTENANCE Year Total $/Unit/Yr Developer's Budget (Un-Trended) $0 $0 Expense Comparable 1 --- $400 Expense Comparable 2 --- $309 Expense Comparable 3 --- $615 CBRE Estimate - Market Value $46,200 $350 CBRE Estimate - Prospective Market Value $48,045 $364 Compiled by CBRE

An estimate bracketed by the comparable range is included and considered over a typical holding period. The present day market value estimate is trended through the date of stabilization for the prospective market value.

Painting & Decorating This expense category includes normal cleaning, painting, decorating and other “make ready” costs expended prior to the initial move-in of a tenant. The comparable data and projections for the subject are summarized as follows:

PAINTING & DECORATING Year Total $/Unit/Yr Developer's Budget (Un-Trended) $0 $0 Expense Comparable 1 --- $128 Expense Comparable 2 --- $193 Expense Comparable 3 --- $258 CBRE Estimate - Market Value $26,400 $200 CBRE Estimate - Prospective Market Value $27,454 $208 Compiled by CBRE

We have concluded $200 per unit for the subject's painting & decorating, which is within the range of the expense comparables. The present day market value estimate is trended through the date of stabilization for the prospective market value.

Grounds (Landscaping) This expense item covers normal landscaping and grounds maintenance of the property. The comparable data and projections for the subject are summarized as follows:

GROUNDS (LANDSCAPING) Year Total $/Unit/Yr Developer's Budget (Un-Trended) $30,000 $227 Expense Comparable 1 --- $75 Expense Comparable 2 --- $271 Expense Comparable 3 --- $212 CBRE Estimate - Market Value $26,400 $200 CBRE Estimate - Prospective Market Value $27,454 $208 Compiled by CBRE

We have concluded $200 per unit for the subject's grounds (landscaping), which is within the range of the expense comparables. The present day market value estimate is trended through the date of stabilization for the prospective market value. Security The subject did not report an expense for this category, therefore, an estimate has not been included.

Management Fee Management expenses are typically negotiated as a percentage of collected revenues (i.e., effective gross income). The comparable data and projections for the subject are summarized as follows:

MANAGEMENT FEE Year Total % of EGI Developer's Budget (Un-Trended) $113,530 8.0% Expense Comparable 1 --- 2.4% Expense Comparable 2 --- 3.0% Expense Comparable 3 --- 3.0% CBRE Estimate - Market Value $51,731 3.0% CBRE Estimate - Prospective Market Value $52,891 3.0% Compiled by CBRE

Professional management fees in the local market range from 2.5% to 4.0%. Given the subject’s size and the competitiveness of the local market area, we believe an appropriate management expense for the subject would be towards the lower to middle portion of the range. The developer's estimate appears to include payroll expenses.

Administrative Payroll This expense item reflects payroll costs associated with on-site management and other administrative personnel. The comparable data and projections for the subject are summarized as follows:

ADMINISTRATIVE PAYROLL Year Total $/Unit/Yr Developer's Budget (Un-Trended) $0 $0 Expense Comparable 1 --- $631 Expense Comparable 2 --- $601 Expense Comparable 3 --- $607 CBRE Estimate - Market Value $82,500 $625 CBRE Estimate - Prospective Market Value $85,794 $650 Compiled by CBRE

We have concluded $625 per unit for the subject's administrative payroll, which is within the range of the expense comparables. The present day market value estimate is trended through the date of stabilization for the prospective market value.

Maintenance Payroll This expense item reflects payroll costs associated with the upkeep and maintenance of the property, including engineering and other maintenance personnel. The comparable data and projections for the subject are summarized as follows:

MAINTENANCE PAYROLL Year Total $/Unit/Yr Developer's Budget (Un-Trended) $0 $0 Expense Comparable 1 --- $506 Expense Comparable 2 --- $413 Expense Comparable 3 --- $605 CBRE Estimate - Market Value $56,100 $425 CBRE Estimate - Prospective Market Value $58,340 $442 Compiled by CBRE

We have concluded $425 per unit for the subject's maintenance payroll, which is within the range of the expense comparables. The present day market value estimate is trended through the date of stabilization for the prospective market value.

Employee Taxes & Benefits This expense item includes all employee payroll taxes and other employment benefits for the subject. The comparable data and projections for the subject are summarized as follows:

EMPLOYEE TAXES & BENEFITS Year Total $/Unit/Yr Developer's Budget (Un-Trended) $0 $0 Expense Comparable 1 --- $219 Expense Comparable 2 --- $220 Expense Comparable 3 --- $433 CBRE Estimate - Market Value $33,000 $250 CBRE Estimate - Prospective Market Value $34,318 $260 Compiled by CBRE

We have concluded $250 per unit for the subject's employee taxes & benefits, which is within the range of the expense comparables. Typically, this expense ranges between 20% and 30% of the combined payroll expense. The subject estimate is 24% of the combined payroll expense. The present day market value estimate is trended through the date of stabilization for the prospective market value.

Employee Apartments (Non-Revenue Units) Apartment properties typically include units that are non-revenue producing. These may include model units, employee units, or others. The comparable data and projections for the subject are summarized as follows:

NON-REVENUE UNITS Year Total $/Unit/Yr Developer's Budget (Un-Trended) $0 $0 Expense Comparable 1 --- $88 Expense Comparable 2 --- $126 Expense Comparable 3 --- $137 CBRE Estimate - Market Value $12,824 $97 CBRE Estimate - Prospective Market Value $13,121 $99 Compiled by CBRE

The market typically provides a model unit to aid with leasing efforts. Additionally, a discount is often provided to employees and/or a courtesy officer. An estimate based on one non-revenue unit, calculated based on the average market rate has been included. Advertising & Leasing This expense category accounts for placement of advertising, commissions, signage, brochures, and newsletters. The comparable data and projections for the subject are summarized as follows:

ADVERTISING & LEASING Year Total $/Unit/Yr Developer's Budget (Un-Trended) $0 $0 Expense Comparable 1 --- $379 Expense Comparable 2 --- $264 Expense Comparable 3 --- $369 CBRE Estimate - Market Value $36,300 $275 CBRE Estimate - Prospective Market Value $37,749 $286 Compiled by CBRE

We have concluded $275 per unit for the subject's advertising & leasing, which is within the range of the expense comparables. Reserves for Replacement Reserves for replacement have been estimated based on market parameters. The comparable data and projections for the subject are summarized as follows:

REPLACEMENT RESERVES Year Total $/Unit/Yr Developer's Budget (Un-Trended) $26,400 $200 Expense Comparable 1 --- $0 Expense Comparable 2 --- $0 Expense Comparable 3 --- $0 CBRE Estimate - Market Value $26,400 $200 CBRE Estimate - Prospective Market Value $26,400 $200 Compiled by CBRE

OPERATING EXPENSE CONCLUSION Operating expenses such as real estate taxes can vary greatly between markets, but core operating expenses are typically fairly consistent. The following tables compare the expense conclusions with and without real estate taxes.

OPERATING EXPENSES EXCLUDING TAXES Year Total $/Unit/Yr Developer's Budget (Un-Trended) $240,347 $1,821 Expense Comparable 1 --- $3,872 Expense Comparable 2 --- $4,284 Expense Comparable 3 --- $5,552 CBRE Estimate - Market Value $556,255 $4,214 CBRE Estimate - Prospective Market Value $576,291 $4,366 Compiled by CBRE

We have concluded $4,214 per unit for the subject's operating expenses excluding taxes, which is within the range of the expense comparables.

The gross operating expense projections for the subject and comparable data are summarized as follows:

TOTAL OPERATING EXPENSES Year Total $/Unit/Yr Developer's Budget (Un-Trended) $385,547 $2,921 Expense Comparable 1 --- $5,162 Expense Comparable 2 --- $5,507 Expense Comparable 3 --- $6,558 CBRE Estimate - Market Value $806,378 $6,109 CBRE Estimate - Prospective Market Value $836,401 $6,336 Compiled by CBRE

We have concluded $6,109 per unit for the subject's total operating expenses, which is within the range of the expense comparables.

NET OPERATING INCOME CONCLUSION The comparable data and projections for the subject are summarized as follows:

NET OPERATING INCOME Year Total $/Unit/Yr Developer's Budget (Un-Trended) $1,033,573 $7,830 CBRE Estimate - Market Value $917,993 $6,954 CBRE Estimate - Prospective Market Value $926,624 $7,020 Compiled by CBRE

DIRECT CAPITALIZATION Direct capitalization is a method used to convert a single year’s estimated stabilized net operating income into a value indication. The following subsections represent different techniques for deriving an overall capitalization rate.

Comparable Sales The overall capitalization rates (OARs) confirmed for the comparable sales analyzed in the sales comparison approach are as follows:

COMPARABLE CAPITALIZATION RATES Sale Sale Price Sale Date $/Unit Occupancy Buyer's Primary Analysis OAR 1 May-21 $196,154 95% Pro Forma (Stabilized) 4.32% 2 Jan-21 $184,583 98% Trailing Actuals 4.59% 3 Oct-20 $187,847 97% Pro Forma (Stabilized) 4.60% 4 Oct-20 $198,113 93% Pro Forma (Stabilized) 4.50% 5 Aug-20 $189,103 90% Pro Forma (Stabilized) 4.75% Indicated OAR: 94% 4.32% - 4.75% Compiled by CBRE

The overall capitalization rates for these sales were derived based upon the actual or pro-forma income characteristics of the property. These comparables are generally reflective of current market trends, interest rates, and buyer’s expectations and motivation in the market.

Published Investor Surveys The results of the most recent investor surveys are summarized in the following chart.

OVERALL CAPITALIZATION RATES Investment Type OAR Range Average CBRE Apartments Class A 4.52% - 5.34% 4.77% Class B 4.81% - 5.85% 5.14% Class C 5.36% - 7.10% 5.82% RealtyRates.com Apartments 3.82% - 11.98% 7.88% Garden/Suburban TH 3.82% - 10.74% 7.11% Hi-Rise/Urban TH 4.82% - 11.98% 8.13% PwC Apartment National Data 3.50% - 7.00% 5.04% Indicated OAR: 4.50% - 5.00%

Compiled by CBRE

The subject is considered to be a Class A property. Because of the subject’s location, investor demand and construction status, an OAR within the upper portion of the Class A range indicated in the preceding table is considered appropriate.

Market Participants The results of recent interviews with knowledgeable real estate professionals are summarized in the following table.

OVERALL CAPITALIZATION RATES Respondent Company OAR Income Date of Survey Confidential National 4.50% - 5.00% Stabilized May-21 Indicated OAR: 4.50% - 5.00% Compiled by CBRE In response to the COVID-19 outbreak, respondents indicated the Coronavirus has had minimal impact on the multifamily investment market. Demand for deals is reported at or near pre- COVID levels and debt remains readily available. Lenders (agency, banks, life co.) originally increased spreads and put in stringent requirements creating a situation where deals were put on hold, but in recent weeks debt markets have started to normalize. Buyers on the sideline with a “wait and see” mentality are reportedly starting to move as debt is more readily available. The duration and extent of economic restrictions will likely have a future impact on various segments of real estate, but the ramifications have not materialized in the multifamily segment as rent collections have remained strong. Closed transactions coupled with respondents indicated there is no to minimal downward pressure on capitalization rates in the market at the time of the writing of this report ranging from 0 to 25 basis points. The overall impact as of the writing of this report is considered minimal. Market condition adjustments and capitalization rates have been adjusted based on the market participant feedback received.

Band of Investment The band of the investment technique has been utilized as a crosscheck to the foregoing techniques. The Mortgage Interest Rate and the Equity Dividend Rate (EDR) are based upon current market yields for similar investments.

The analysis is shown in the following table.

BAND OF INVESTMENT Mortgage Interest Rate 2.23% Mortgage Term (Amortization Period) 30 Years Mortgage Ratio (Loan-to-Value) 80% Mortgage Constant (monthly payments) 0.04575 Equity Dividend Rate (EDR) 6.20%

Mortgage Requirement 80% x 0.04575 = 0.03660 Equity Requirement 20% x 0.06200 = 0.01240 100% 0.04900

Indicated OAR: 4.90% Compiled by CBRE

 The selected rates represent the minimal indication in the RealtyRates.com table

Capitalization Rate Conclusion The following chart summarizes the OAR conclusions.

OVERALL CAPITALIZATION RATE - CONCLUSION Source Indicated OAR Comparable Sales 4.32% - 4.75% Published Surveys 4.50% - 5.00% Market Participants 4.50% - 5.00% Band of Investment 4.90% CBRE Estimate - Market Value 4.75% CBRE Estimate - Prospective Market Value 4.75% Compiled by CBRE

Cost to Achieve Stabilized Operations The cost estimates employed for this approach are reflective of a property operating at a stabilized level. A stabilized occupancy (including a collection loss) for the subject has been estimated to be 94.0%, or 124 units while the subject is currently proposed with construction anticipated over the next 11 months.

Based on the developer’s projections and the pro-forma estimates, the building is estimated for initial unit completions in December 2021 with the final units delivered in April 2022. Pre- leasing is anticipated to commence with occupancy to occur on a staggered basis upon completion of the respective units once the certificate of occupancy is issued. Based on the current absorption trends, ultimate stabilization is anticipated by the end of September 2022. The following table shows the projected development timeline:

PRO FORMA TIMELINE

Projected Absorption

Month # Units Date Event 10March-21Start 2 0 April-21 30May-21 40June-21 5 0 July-21 60August-21 70September-21 8 2 October-21 Pre-Leasing 9 4 November-21 10 10 December-21 First Units 11 12 January-22 12 12 February-22 13 12 March-22 14 12 April-22 Completion 15 12 May-22 16 12 June-22 17 12 July-22 18 12 August-22 19 12 September-22 Stabilization Total: 124 Units Complied By: CBRE The subject, upon completion, will be operating below a stabilized occupancy position, and require a deduction for a lease-up to stabilization. On the basis of the stabilized occupancy estimate and 5-month total lease-up (from completion), a monthly absorption velocity of 12-units per month is indicated.

Given the short term associated with the remaining lease-up, no discount is applied. We have also employed a reasonable profit consideration of 0.50% of the stabilized value estimate, equal to $97,500 in order to attract a developer/investor to accept the risk associated with the leasing of the property to a stabilized level.

Based upon a Lease-Up Discount Analysis over the estimated absorption period, an adjustment of $226,000 for the subject has been estimated. This is deducted from the Cost and Sales Comparison Approaches along with the Direct Capitalization technique to arrive at an "as complete" value estimate. The Lease-Up Discount Analysis schedule is provided below:

LEASE UP DISCOUNT SCHEDULE

Month 12345

AS-STABILIZED

Potential Rental Income $144,328 $144,328 $144,328 $144,328 $144,328 Loss to Lease $0$0$0$0$0 Concessions $0$0$0$0$0 Adjusted Rental Income $144,328 $144,328 $144,328 $144,328 $144,328 Vacancy & Credit Loss (%) 6.0% 6.0% 6.0% 6.0% 6.0% Vacancy & Credit Loss ($) ($8,660) ($8,660) ($8,660) ($8,660) ($8,660) Net Rental Income $135,668 $135,668 $135,668 $135,668 $135,668 Other Income $11,251 $11,251 $11,251 $11,251 $11,251 Effective Gross Income $146,919 $146,919 $146,919 $146,919 $146,919 Total Expenses ($69,700) ($69,700) ($69,700) ($69,700) ($69,700) Net Operating Income $77,219 $77,219 $77,219 $77,219 $77,219

AS-IS

Potential Rental Income $144,328 $144,328 $144,328 $144,328 $144,328 Loss to Lease $0$0$0$0$0 Concessions $0$0$0$0$0 Adjusted Rental Income $144,328 $144,328 $144,328 $144,328 $144,328 Vacancy & Credit Loss (%) 43.4% 34.3% 25.2% 16.2% 7.1% Vacancy & Credit Loss ($) ($62,673) ($49,553) ($36,432) ($23,311) ($10,190) Net Rental Income $81,655 $94,775 $107,896 $121,017 $134,137 Other Income $6,771 $7,859 $8,947 $10,036 $11,124 Effective Gross Income $88,426 $102,635 $116,844 $131,052 $145,261 Total Expenses (30% Variable) ($61,375) ($63,397) ($65,420) ($67,442) ($69,464) Net Operating Income $27,051 $39,237 $51,424 $63,610 $75,797

NOI Differential $50,168 $37,981 $25,795 $13,608 $1,422 Total Lease-Up Cost $50,168 $37,981 $25,795 $13,608 $1,422 Discounted @ 0.00% $50,168 $37,981 $25,795 $13,608 $1,422

Indicated Lease-Up Discount $128,974 Profit as % of Stabilized Value 0.50% $97,500 Total Lease-Up Discount $226,474 Rounded $226,000 Compiled by CBRE

DIRECT CAPITALIZATION SUMMARY A summary of the direct capitalization is illustrated in the following chart.

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DIRECT CAPITALIZATION SUMMARY - PROSPECTIVE MARKET VALUE

Income - Primary Component $/Door/Mo. $/Unit/Yr Total Potential Rental Income $1,093 $13,121 $1,731,935 Loss to Lease 0.00% - 0- Concessions 0.00% - 0- Adjusted Rental Income 1,093 $13,121 $1,731,935 Vacancy 5.00% (55) (656) (86,597) Credit Loss 1.00% (11) (131) (17,319) Net Rental Income 1,028 $12,333 $1,628,019 Other Income 42 500 66,000 Other Reimbursed Income 14 169 22,334 RUBS/Utility Income 29 354 46,672 Subtotal Other Income (Net) 85 $1,023 $135,006 Effective Gross Income - Total 1,113 $13,356 $1,763,025

Expenses Real Estate Taxes $1,971 $260,111 Property Insurance 260 34,318 Natural Gas 0- Electricity 208 27,454 Water & Sewer 416 54,908 Cable Television 0- Trash Removal 104 13,727 Administrative & General 260 34,318 Repairs & Maintenance 364 48,045 Painting & Decorating 208 27,454 Grounds (Landscaping) 208 27,454 Security 0- Management Fee 3.00% 401 52,891 Administrative Payroll 650 85,794 Maintenance Payroll 442 58,340 Employee Taxes & Benefits 260 34,318 Non-Revenue Units 99 13,121 Advertising & Leasing 286 37,749 Replacement Reserves 200 26,400 Total Operating Expenses $6,336 $836,401 Operating Expenses Excluding Taxes $4,366 $576,291 Operating Expense Ratio 47.44% Net Operating Income $7,020 $926,624 OAR ÷ 4.75% Prospective As Stabilized Market Value September 20, 2022 $19,507,869 Rounded $19,500,000 Lease-Up Discount (226,000) One Time Concession (135,668) Prospective As Complete Market Value April 20, 2022 $19,146,200 Rounded $19,100,000 Remaining Cost to Complete (11,072,610) Indicated Value As Is May 20, 2021 $8,073,590 Rounded $8,100,000 Value Per Unit $61,164

Compiled by CBRE

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Reconciliation of Value

The value indications from the approaches to value are summarized as follows:

SUMMARY OF VALUE CONCLUSIONS Sales Comparison Premise As of Date Land Value Cost Approach Approach Income Approach Reconciled Value As Is - Market Value May 20, 2021 $1,250,000 $8,000,000 $8,400,000 $8,100,000 $8,100,000 Prospective As Complete - Market Value April 20, 2022 $19,100,000 $19,400,000 $19,100,000 $19,100,000 Prospective As Stabilized - Market Value September 20, 2022 $19,500,000 $19,800,000 $19,500,000 $19,500,000 Compiled by CBRE The cost approach typically gives a reliable value indication when there is strong support for the replacement cost estimate and when there is minimal depreciation. Considering the proposed nature and lack of depreciation present in the property, the reliability of the cost approach is considered good. Therefore, the cost approach is considered equally applicable to the subject and is used primarily as a test of reasonableness against the other valuation techniques.

In the sales comparison approach, the subject is compared to similar properties that have been sold recently or for which listing prices or offers are known. The sales used in this analysis are considered comparable to the subject, and the required adjustments were based on reasonable and well-supported rationale. In addition, market participants are currently analyzing purchase prices on investment properties as they relate to available substitutes in the market. Therefore, the sales comparison approach is considered to provide a reliable value indication, but has been given secondary emphasis in the final value reconciliation.

The income capitalization approach is applicable to the subject since it is an income producing property leased in the open market. Market participants are primarily analyzing properties based on their income generating capability. Therefore, the income capitalization approach is considered a reasonable and substantiated value indicator and has been given primary emphasis in the final value estimate.

Based on the foregoing, the market value of the subject has been concluded as follows:

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Assumptions and Limiting Conditions

1. CBRE, Inc. through its appraiser (collectively, “CBRE”) has inspected through reasonable observation the subject property. However, it is not possible or reasonably practicable to personally inspect conditions beneath the soil and the entire interior and exterior of the improvements on the subject property. Therefore, no representation is made as to such matters. 2. The report, including its conclusions and any portion of such report (the “Report”), is as of the date set forth in the letter of transmittal and based upon the information, market, economic, and property conditions and projected levels of operation existing as of such date. The dollar amount of any conclusion as to value in the Report is based upon the purchasing power of the U.S. Dollar on such date. The Report is subject to change as a result of fluctuations in any of the foregoing. CBRE has no obligation to revise the Report to reflect any such fluctuations or other events or conditions which occur subsequent to such date. 3. Unless otherwise expressly noted in the Report, CBRE has assumed that: (i) Title to the subject property is clear and marketable and that there are no recorded or unrecorded matters or exceptions to title that would adversely affect marketability or value. CBRE has not examined title records (including without limitation liens, encumbrances, easements, deed restrictions, and other conditions that may affect the title or use of the subject property) and makes no representations regarding title or its limitations on the use of the subject property. Insurance against financial loss that may arise out of defects in title should be sought from a qualified title insurance company. (ii) Existing improvements on the subject property conform to applicable local, state, and federal building codes and ordinances, are structurally sound and seismically safe, and have been built and repaired in a workmanlike manner according to standard practices; all building systems (mechanical/electrical, HVAC, elevator, plumbing, etc.) are in good working order with no major deferred maintenance or repair required; and the roof and exterior are in good condition and free from intrusion by the elements. CBRE has not retained independent structural, mechanical, electrical, or civil engineers in connection with this appraisal and, therefore, makes no representations relative to the condition of improvements. CBRE appraisers are not engineers and are not qualified to judge matters of an engineering nature, and furthermore structural problems or building system problems may not be visible. It is expressly assumed that any purchaser would, as a precondition to closing a sale, obtain a satisfactory engineering report relative to the structural integrity of the property and the integrity of building systems. (iii) Any proposed improvements, on or off-site, as well as any alterations or repairs considered will be completed in a workmanlike manner according to standard practices. (iv) Hazardous materials are not present on the subject property. CBRE is not qualified to detect such substances. The presence of substances such as asbestos, urea formaldehyde foam insulation, contaminated groundwater, mold, or other potentially hazardous materials may affect the value of the property. (v) No mineral deposit or subsurface rights of value exist with respect to the subject property, whether gas, liquid, or solid, and no air or development rights of value may be transferred. CBRE has not considered any rights associated with extraction or exploration of any resources, unless otherwise expressly noted in the Report. (vi) There are no contemplated public initiatives, governmental development controls, rent controls, or changes in the present zoning ordinances or regulations governing use, density, or shape that would significantly affect the value of the subject property. (vii) All required licenses, certificates of occupancy, consents, or other legislative or administrative authority from any local, state, nor national government or private entity or organization have been or can be readily obtained or renewed for any use on which the Report is based. (viii) The subject property is managed and operated in a prudent and competent manner, neither inefficiently or super-efficiently. (ix) The subject property and its use, management, and operation are in full compliance with all applicable federal, state, and local regulations, laws, and restrictions, including without limitation environmental laws, seismic hazards, flight patterns, decibel levels/noise envelopes, fire hazards, hillside ordinances, density, allowable uses, building codes, permits, and licenses. (x) The subject property is in full compliance with the Americans with Disabilities Act (ADA). CBRE is not qualified to assess the subject property’s compliance with the ADA, notwithstanding any discussion of possible readily achievable barrier removal construction items in the Report.

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(xi) All information regarding the areas and dimensions of the subject property furnished to CBRE are correct, and no encroachments exist. CBRE has neither undertaken any survey of the boundaries of the subject property nor reviewed or confirmed the accuracy of any legal description of the subject property. Unless otherwise expressly noted in the Report, no issues regarding the foregoing were brought to CBRE’s attention, and CBRE has no knowledge of any such facts affecting the subject property. If any information inconsistent with any of the foregoing assumptions is discovered, such information could have a substantial negative impact on the Report. Accordingly, if any such information is subsequently made known to CBRE, CBRE reserves the right to amend the Report, which may include the conclusions of the Report. CBRE assumes no responsibility for any conditions regarding the foregoing, or for any expertise or knowledge required to discover them. Any user of the Report is urged to retain an expert in the applicable field(s) for information regarding such conditions. 4. CBRE has assumed that all documents, data and information furnished by or behalf of the client, property owner, or owner’s representative are accurate and correct, unless otherwise expressly noted in the Report. Such data and information include, without limitation, numerical street addresses, lot and block numbers, Assessor’s Parcel Numbers, land dimensions, square footage area of the land, dimensions of the improvements, gross building areas, net rentable areas, usable areas, unit count, room count, rent schedules, income data, historical operating expenses, budgets, and related data. Any error in any of the above could have a substantial impact on the Report. Accordingly, if any such errors are subsequently made known to CBRE, CBRE reserves the right to amend the Report, which may include the conclusions of the Report. The client and intended user should carefully review all assumptions, data, relevant calculations, and conclusions of the Report and should immediately notify CBRE of any questions or errors within 30 days after the date of delivery of the Report. 5. CBRE assumes no responsibility (including any obligation to procure the same) for any documents, data or information not provided to CBRE, including without limitation any termite inspection, survey or occupancy permit. 6. All furnishings, equipment and business operations have been disregarded with only real property being considered in the Report, except as otherwise expressly stated and typically considered part of real property. 7. Any cash flows included in the analysis are forecasts of estimated future operating characteristics based upon the information and assumptions contained within the Report. Any projections of income, expenses and economic conditions utilized in the Report, including such cash flows, should be considered as only estimates of the expectations of future income and expenses as of the date of the Report and not predictions of the future. Actual results are affected by a number of factors outside the control of CBRE, including without limitation fluctuating economic, market, and property conditions. Actual results may ultimately differ from these projections, and CBRE does not warrant any such projections. 8. The Report contains professional opinions and is expressly not intended to serve as any warranty, assurance or guarantee of any particular value of the subject property. Other appraisers may reach different conclusions as to the value of the subject property. Furthermore, market value is highly related to exposure time, promotion effort, terms, motivation, and conclusions surrounding the offering of the subject property. The Report is for the sole purpose of providing the intended user with CBRE’s independent professional opinion of the value of the subject property as of the date of the Report. Accordingly, CBRE shall not be liable for any losses that arise from any investment or lending decisions based upon the Report that the client, intended user, or any buyer, seller, investor, or lending institution may undertake related to the subject property, and CBRE has not been compensated to assume any of these risks. Nothing contained in the Report shall be construed as any direct or indirect recommendation of CBRE to buy, sell, hold, or finance the subject property. 9. No opinion is expressed on matters which may require legal expertise or specialized investigation or knowledge beyond that customarily employed by real estate appraisers. Any user of the Report is advised to retain experts in areas that fall outside the scope of the real estate appraisal profession for such matters. 10. CBRE assumes no responsibility for any costs or consequences arising due to the need, or the lack of need, for flood hazard insurance. An agent for the Federal Flood Insurance Program should be contacted to determine the actual need for Flood Hazard Insurance. 11. Acceptance or use of the Report constitutes full acceptance of these Assumptions and Limiting Conditions and any special assumptions set forth in the Report. It is the responsibility of the user of the Report to read in full, comprehend and thus become aware of all such assumptions and limiting conditions. CBRE assumes no responsibility for any situation arising out of the user’s failure to become familiar with and understand the same. 12. The Report applies to the property as a whole only, and any pro ration or division of the title into fractional interests will invalidate such conclusions, unless the Report expressly assumes such pro ration or division of interests.

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13. The allocations of the total value estimate in the Report between land and improvements apply only to the existing use of the subject property. The allocations of values for each of the land and improvements are not intended to be used with any other property or appraisal and are not valid for any such use. 14. The maps, plats, sketches, graphs, photographs, and exhibits included in this Report are for illustration purposes only and shall be utilized only to assist in visualizing matters discussed in the Report. No such items shall be removed, reproduced, or used apart from the Report. 15. The Report shall not be duplicated or provided to any unintended users in whole or in part without the written consent of CBRE, which consent CBRE may withhold in its sole discretion. Exempt from this restriction is duplication for the internal use of the intended user and its attorneys, accountants, or advisors for the sole benefit of the intended user. Also exempt from this restriction is transmission of the Report pursuant to any requirement of any court, governmental authority, or regulatory agency having jurisdiction over the intended user, provided that the Report and its contents shall not be published, in whole or in part, in any public document without the written consent of CBRE, which consent CBRE may withhold in its sole discretion. Finally, the Report shall not be made available to the public or otherwise used in any offering of the property or any security, as defined by applicable law. Any unintended user who may possess the Report is advised that it shall not rely upon the Report or its conclusions and that it should rely on its own appraisers, advisors and other consultants for any decision in connection with the subject property. CBRE shall have no liability or responsibility to any such unintended user.

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ADDENDA

Addendum A LAND SALE DATA SHEETS

Property Name Symphony Park Congregate Living Site Address 12221 Sam Furr Road Huntersville, NC 28078 United States

Government Tax Agency Mecklenburg Govt./Tax ID 011-231-04 Site/Government Regulations Acres Square feet Land Area Net 35.806 1,559,709 Land Area Gross 35.806 1,559,709

Site Development Status Raw Shape Rectangular Topography Generally Level Utilities All Public

Maximum FAR N/A Min Land to Bldg Ratio N/A Maximum Density 8.94 per ac

Frontage Distance/Street 1,200 ft Sam Furr Road

General Plan N/A Specific Plan N/A Zoning TR Entitlement Status None Sale Summary Recorded Buyer South Creek Construction Marketing Time N/A True Buyer Jake Palilo Buyer Type Developer Recorded Seller Maher F & Nagiba A Habashi Seller Type End User True Seller M & N Trust Primary Verification County Records, Broker, Marketing Brochure

Interest Transferred Fee Simple/Freehold Type Sale Current Use N/A Date 2/5/2021 Proposed Use Residential development Sale Price $3,900,000 Listing Broker Nick Claudio - Avision Young Financing Cash to Seller Selling Broker N/A Cash Equivalent $3,900,000 Doc # 35638 / 962 Capital Adjustment $0 Adjusted Price $3,900,000

Transaction Summary plus Five-Year CBRE View History Transaction Date Transaction Type Buyer Seller Price Price/ac and /sf 02/2021 Sale South Creek Construction Maher F & Nagiba A $3,900,000 $108,920 / $2.50 Habashi

© 2021 CBRE, Inc. Sale Land - Multi Unit Residential No. 1 Units of Comparison $2.50 / sf $12,188 / Unit $108,920.29 / ac $12,188 / Allowable Bldg. Units N/A / Building Area Financial No information recorded Map & Comments This comparable represents a 35.806-acre tract of land that is generally level with good visibility and access along Sam Furr Road. This site is east of NC-115 on the north side of Sam Furr Road. The site was zoned TR (Transitional Residential) when it was placed under contract. The buyers have had the site rezoned to MR-CD (Neighborhood Residential - Conditional Use) for development to a 320-unit independent living facility. The initial rezoning application was filed in June 2020. The land has access to all utilities and is located in a developing residential and commercial market area. The seller was motivated to liquidate this asset that was in their trust according to the listing broker. At the time of sale there was a single-family residential house and the land was half wooded and half cleared at time of sale given the house was a ranch style property. The site was purchased on February 5, 2021 for $3,900,000 or $108,920 per acre or $2.50 per square foot. The sale price equates to $12,188 per proposed unit based upon a density of 8.94 units per acre.

Property Name Ashley Flats Land Address 2104 Ashley Rd Charlotte, NC 28208 United States

Government Tax Agency Mecklenburg Govt./Tax ID 06109202 Site/Government Regulations Acres Square feet Land Area Net 5.808 253,001 Land Area Gross 5.808 253,001

Site Development Status Raw Shape Irregular Topography Moderate Slope Utilities N/A

Maximum FAR N/A Min Land to Bldg Ratio N/A Maximum Density 25.83 per ac

Frontage Distance/Street 200 ft Ashley Road Frontage Distance/Street 690 ft Joy Street Frontage Distance/Street 480 ft Bullard Street

General Plan N/A Specific Plan N/A Zoning UR-2 (CD) Entitlement Status N/A Sale Summary Recorded Buyer INLIVIAN Marketing Time N/A True Buyer ECG Buyer Type Developer Recorded Seller Ashley Road Holdings, LLC Seller Type N/A True Seller N/A Primary Verification Appraisal

Interest Transferred Fee Simple/Freehold Type Sale Current Use N/A Date 12/3/2020 Proposed Use Multifamily Sale Price $1,580,000 Listing Broker N/A Financing Cash to Seller Selling Broker N/A Cash Equivalent $1,580,000 Doc # 35492/504 Capital Adjustment $0 Adjusted Price $1,580,000

Transaction Summary plus Five-Year CBRE View History Transaction Date Transaction Type Buyer Seller Price Price/ac and /sf 12/2020 Sale INLIVIAN Ashley Road Holdings, $1,580,000 $272,034 / $6.25 LLC

© 2021 CBRE, Inc. Sale Land - Multi Unit Residential No. 2 Units of Comparison $6.25 / sf $10,533 / Unit $272,033.88 / ac $10,533 / Allowable Bldg. Units N/A / Building Area Financial No information recorded Map & Comments The comparable represents a 5.808-acre site that is proposed for 150-unit multi-family garden property that will be located at 2104 Ashley Road in Charlotte, North Carolina. The property will consist of 3, three-story apartment buildings, 1, three/four-split story apartment building, and 2, two/three-split story apartment buildings. Construction is anticipated to begin in April 2021 and the project is expected to be complete by October 2022. The site is currently wooded land and will need to be cleared before development can begin. Upon completion of construction the property will be placed into service under the Section 42 Low-Income Housing Tax Credit (LIHTC) program for an initial 30-year period. 100% of the units (150 units) will be rent restricted and occupied by households with incomes at or below certain area median income (AMI) designations. The property sold to ECG Acquisitions, LLC for $1,580,000 or $10,533 per proposed unit. ECG Acquisitions, LLC entered into an assignment and assumption of purchase and sale agreement with ECG Ashley, LP, who will become owners of the subject property upon closing. The Developer will be a to be formed affiliate of Nashville-based Elmington Capital Group (ECG) and Horizon Development Properties, Inc. (HDP). Horizon Development Properties, Inc. (HDP), a wholly owned subsidiary of Inlivian (f/k/a/ the Charlotte Housing Authority), is a nonprofit development company.

Property Name Broadstone Highland Creek Site Address 5050 Ridge Road Charlotte, NC 28269 United States

Government Tax Agency Mecklenburg Govt./Tax ID 02941110 Site/Government Regulations Acres Square feet Land Area Net 10.750 468,270 Land Area Gross 10.750 468,270

Site Development Status Raw Shape Irregular Topography Rolling Utilities All Public

Maximum FAR N/A Min Land to Bldg Ratio N/A Maximum Density 24.84 per ac

Frontage Distance/Street 500 ft Ridge Road Frontage Distance/Street 235 ft Prosperity Ridge Road

General Plan N/A Specific Plan N/A Zoning R-3 Entitlement Status N/A Sale Summary Recorded Buyer Broadstone Highland Creek Owner, LLC Marketing Time 38 Month(s) True Buyer Alliance Residential Realty Buyer Type N/A Recorded Seller Mallard Creek Optimist Club Seller Type N/A True Seller N/A Primary Verification Broker

Interest Transferred Fee Simple/Freehold Type Sale Current Use N/A Date 7/2/2020 Proposed Use Multifamily Sale Price $2,150,000 Listing Broker Tommy Trimble, Foundry Commercial Financing Cash to Seller Selling Broker N/A Cash Equivalent $2,150,000 Doc # 34774/192 Capital Adjustment $0 Adjusted Price $2,150,000

Transaction Summary plus Five-Year CBRE View History Transaction Date Transaction Type Buyer Seller Price Price/ac and /sf 07/2020 Sale Broadstone Highland Mallard Creek Optimist $2,150,000 $200,000 / $4.59 Creek Owner, LLC Club

© 2021 CBRE, Inc. Sale Land - Multi Unit Residential No. 3 Units of Comparison $4.59 / sf $8,052 / Unit $200,000.00 / ac $8,052 / Allowable Bldg. Units N/A / Building Area Financial No information recorded Map & Comments This is the sale of a 10.54-acre tract of land located along the north side of Ridge Road and the southwest side of Prosperity Ridge Road in Charlotte, Mecklenburg County, North Carolina. The tract is located just east of Prosperity Church Road and north of Interstate 485 in a developing area of northern Charlotte. The site was zoned R-3 when it went under contract. The buyer had the site rezoned to MUDD-O and approved for development to a 267-unit apartment complex with 8,000 square feet of ground floor commercial space. According to a press release the property will include 260 flats with an average size of 991 square feet as well as 7 rental townhouse units. Amenities will include a pool, club- room, fitness center, and dog park. The land sold in July 2020 for $2,150,000 or $200,000 per acre or $4.59 per square foot. The sale price equates to $8,052 per proposed unit based on a density of 25.33 units per acre.

Property Name Weddington Hills of Concord Apartments Land Address 8150 Weddington Road Concord, NC 28027 United States

Government Tax Agency Cabarrus Govt./Tax ID Portion of 4599-26-1878-0000 Site/Government Regulations Acres Square feet Land Area Net 11.500 500,940 Land Area Gross 11.500 500,940

Site Development Status Raw Shape Irregular Topography Generally Level Utilities All Available

Maximum FAR N/A Min Land to Bldg Ratio N/A Maximum Density 12.52 per ac

Frontage Distance/Street N/A Weddington Road

General Plan N/A Specific Plan N/A Zoning C-2, Commercial Entitlement Status N/A Sale Summary Recorded Buyer Weddington Hills of Concord, LLC Marketing Time N/A True Buyer N/A Buyer Type Developer Recorded Seller Brigem, LLC Seller Type Other True Seller N/A Primary Verification Appraisal Report

Interest Transferred Fee Simple/Freehold Type Sale Current Use N/A Date 2/14/2020 Proposed Use Multifamily Sale Price $1,500,000 Listing Broker N/A Financing Cash to Seller Selling Broker N/A Cash Equivalent $1,500,000 Doc # 14002/187 Capital Adjustment $0 Adjusted Price $1,500,000

Transaction Summary plus Five-Year CBRE View History Transaction Date Transaction Type Buyer Seller Price Price/ac and /sf 02/2020 Sale Weddington Hills of Brigem, LLC $1,500,000 $130,435 / $2.99 Concord, LLC

© 2021 CBRE, Inc. Sale Land - Multi Unit Residential No. 4 Units of Comparison $2.99 / sf $10,417 / Unit $130,434.78 / ac $10,417 / Allowable Bldg. Units N/A / Building Area Financial No information recorded Map & Comments This comparable is a site for a proposed 144-unit multi-family garden property located at 8150 Weddington Road in Concord, North Carolina. The property consists of a 11.5-acre portion of a larger 48.7-acre site which is proposed to be developed with a 720-unit multifamily property. Weddington Hills of Concord, LLC is purchased the Phase I portion, consisting of 11.5-acres, for $1,500,000 in February 2020. Phase I will include 144-units, which equates to $10,417 per proposed unit. The PSA also includes options for the buyer to purchase Phases II & III for $2,000,000 and $1,500,000, respectively. The property will consist of 4, three-story apartment buildings along with a clubhouse and two detached garages.

Addendum B IMPROVED SALE DATA SHEETS

Property Name Century Plantation Pointe Address 100 Ervin Road Mooresville, NC 28117 United States

Government Tax Agency Iredell Govt./Tax ID 464-708-9740 Unit Mix Detail Rate Timeframe Monthly Unit Type No. % Size (sf) Rent Rent / sf 1BR / 1BA 58 22% 647 $986-$986 $1.52 1BR / 1BA 60 23% 701 $1,013-$1,013 $1.45 2BR / 2BA 70 27% 1,027 $1,238-$1,238 $1.21 2BR / 2BA 48 18% 1,080 $1,265-$1,265 $1.17 3BR / 2BA 24 9% 1,236 $1,486-$1,486 $1.20 Totals/Avg 260 $1,158 $1.29

Improvements Land Area 22.238 ac Status Existing Net Rentable Area (NRA) 232,980 sf Year Built 2013 Total # of Units 260 Unit Year Renovated N/A Average Unit Size 896 sf Condition Good Floor Count 3 Exterior Finish Fiber Cement Board Property Features N/A

Project Amenities Barbeque Area, Car Wash Facility, Clubhouse, Conference Room, Fitness Center, Laundry Facility, Pool

Unit Amenities Black Appliances, Carpeted Flooring, Ceiling Fans, Dishwasher, Garbage Disposal, Microwave Oven, Plank Flooring, Private Patios / Balconies, Range / Oven, Refrigerator with Icemaker, Washer / Dryer Sale Summary Recorded Buyer Bell Fund VII Lake Norman, LP Marketing Time N/A True Buyer Bell Properties Buyer Type Private Investor Recorded Seller Centennial Plantation Pointe, LLC Seller Type Private Investor True Seller N/A Primary Verification Phil Brosseau with Eastdil, Appraisal

Interest Transferred Leased Fee Type Sale Current Use Apartment Date 5/4/2021 Proposed Use Apartment Sale Price $51,000,000 Listing Broker N/A Financing Market Rate Financing Selling Broker N/A Cash Equivalent $51,000,000 Doc # 2809/2495 Capital Adjustment $0 Adjusted Price $51,000,000

Transaction Summary plus Five-Year CBRE View History Cash Equivalent Transaction Date Transaction Type Buyer Seller Price Price/unit and /sf 05/2021 Sale Bell Fund VII Lake Centennial Plantation $51,000,000 $196,154 / $218.90 Norman, LP Pointe, LLC

© 2021 CBRE, Inc. Sale Residential - Multi-unit Garden No. 1 Units of Comparison Static Analysis Method Pro Forma (Stabilized) Eff Gross Inc Mult (EGIM) 13.29 Buyer's Primary Analysis Yield Capitalization Analysis Op Exp Ratio (OER) 42.61% Net Initial Yield/Cap. Rate 4.32% Adjusted Price / sf $218.90 Projected IRR N/A Adjusted Price / Unit $196,154 Actual Occupancy at Sale 95% Financial

Pro Forma Trailing Revenue Type Stabilized Actuals Period Ending N/A 12/31/2020 Source Appraiser Seller Price $51,000,000 $51,000,000 Potential Gross Income N/A N/A Economic Occupancy N/A N/A Economic Loss N/A N/A Effective Gross Income $3,837,755 $3,638,168 Expenses $1,635,090 $1,671,306 Net Operating Income $2,202,665 $1,966,862 NOI / sf $9.45 $8.44 NOI / Unit $8,472 $7,565 EGIM 13.29 14.02 OER 42.61% 45.94% Net Initial Yield/Cap. Rate 4.32% 3.86% Map & Comments Century Plantation Pointe is a 260 unit multifamily property located at 106 Plantation Pointe Loop in Mooresville, North Carolina. The property consists of 13 three-story multifamily buildings, and one clubhouse. The improvements were constructed in 2013 and are situated on a 22.23-acre site. At the time of sale the property was 94.6% occupied and is considered to be in good overall condition. The property was purchased in May 2021 for $51,000,000 or $196,154 per unit. The purchase price is reported by Walker & Dunlop. The property was not actively marketed, but the transaction is being facilitated off market by Phil Brosseau with Eastdil. We attempted but were unable to reach Mr. Brosseau via phone and email. Bell Properties is a very experienced national investor and 3rd party management company based in Greensboro with several apartment communities under management throughout the Charlotte area. Parker Nance, with Bell Partners noted that they liked the area and viewed the property as having value-add upside. Based on the trailing 12-month operations, including a 3% management fee and $350 per unit reserve allowance the purchase price indicates a 3.86% capitalization rate. Based on the appraiser's proforma, including a 2.5% management fee and $350 per unit reserve allowance, the purchase price results in a 4.32% capitalization rate.

Property Name Preserve at Mountain Island Lake Address 10410 Cooks Way Drive Charlotte, NC 28216 United States

Government Tax Agency Mecklenburg Govt./Tax ID Multiple Unit Mix Detail Rate Timeframe Monthly Unit Type No. % Size (sf) Rent Rent / sf 1BR, 1BA 96 40% 744 $1,015 $1.36 2BR, 2BA 120 50% 1,085 $1,215 $1.12 3BR, 2BA 24 10% 1,272 $1,415 $1.11 Totals/Avg 240 $1,155 $1.19

Improvements Land Area 19.879 ac Status Existing Net Rentable Area (NRA) 232,152 sf Year Built 2018 Total # of Units 240 Unit Year Renovated N/A Average Unit Size 967 sf Condition Excellent Floor Count 3 Exterior Finish Brick Property Features Surface Parking

Project Amenities Clubhouse, Dog Park / Run, Fitness Center, Pool

Unit Amenities Dishwasher, Garbage Disposal, Microwave Oven, Range / Oven, Refrigerator Sale Summary Recorded Buyer Blue Atlantic Preserve, LP Marketing Time N/A True Buyer N/A Buyer Type N/A Recorded Seller BRC Mountain Island, LLC Seller Type N/A True Seller N/A Primary Verification Appraisal, Broker

Interest Transferred Leased Fee Type Sale Current Use N/A Date 1/29/2021 Proposed Use N/A Sale Price $44,300,000 Listing Broker JLL Financing Cash to Seller Selling Broker N/A Cash Equivalent $44,300,000 Doc # 35612/514 Capital Adjustment $0 Adjusted Price $44,300,000

Transaction Summary plus Five-Year CBRE View History Cash Equivalent Transaction Date Transaction Type Buyer Seller Price Price/unit and /sf 01/2021 Sale Blue Atlantic Preserve, LP BRC Mountain Island, $44,300,000 $184,583 / $190.82 LLC

© 2021 CBRE, Inc. Sale Residential - Multi-unit Garden No. 2 Units of Comparison Static Analysis Method Trailing Actuals Eff Gross Inc Mult (EGIM) 13.31 Buyer's Primary Analysis Yield Capitalization Analysis Op Exp Ratio (OER) 38.87% Net Initial Yield/Cap. Rate 4.59% Adjusted Price / sf $190.82 Projected IRR N/A Adjusted Price / Unit $184,583 Actual Occupancy at Sale 98% Financial

Pro Forma Trailing Revenue Type Stabilized Actuals Period Ending N/A N/A Source N/A N/A Price $44,300,000 $44,300,000 Potential Gross Income N/A N/A Economic Occupancy N/A N/A Economic Loss N/A N/A Effective Gross Income $3,164,338 $3,329,505 Expenses $1,272,149 $1,294,260 Net Operating Income $1,892,189 $2,035,245 NOI / sf $8.15 $8.77 NOI / Unit $7,884 $8,480 EGIM 14.00 13.31 OER 40.20% 38.87% Net Initial Yield/Cap. Rate 4.27% 4.59% Map & Comments Preserve at Mountain Island Lake is a 240-unit garden style apartment complex located in Charlotte, North Carolina with good proximity to Interstate 485. The property consists of 10 three-story buildings and one clubhouse building. The improvements were constructed in 2018 and are situated on a 19.88- acre site. Community amenities include a clubhouse, dog park, fitness center, swimming pool, and playground. Unit amenities include granite countertops and washer/dryer units. On January 29th, 2021, the property was purchased for $44,300,000, or $184,583 per unit. This purchase price indicates a cap rate of 4.27% based on the buyer's budget, which included $250 per unit in replacement reserves. It also indicates a cap rate of 4.59% based on available stabilized trailing data, which was an annualized T-4, inclusive of $200 per unit in replacement reserves. The property was 97.5% occupied at the time of sale, but it had recently finished its initial lease-up phase. The property was actively marketed by JLL. Andrea Howard, who was lead broker for JLL, noted that two offers came in higher among the 28 total offers, but the buyer won on the basis of quality.

Property Name Villas at Regal Manor Address 1069 Chateau Crossing Drive Fort Mill, SC 29715 United States

Government Tax Agency York Govt./Tax ID 7290000025 Unit Mix Detail Rate Timeframe Monthly Unit Type No. % Size (sf) Rent Rent / sf 2BR/2BA 36 25% 1,145 $1,080 $0.94 2BR/2BA 72 50% 1,200 $1,100 $0.92 3BR/2BA 36 25% 1,225 $1,300 $1.06 Totals/Avg 144 $1,145 $0.96

Improvements Land Area 11.470 ac Status Existing Gross Building Area (GBA) 180,306 sf Year Built 2017 Total # of Units 144 Unit Year Renovated N/A Average Unit Size 1,193 sf Condition Excellent Floor Count 3 Exterior Finish Aggregate Property Features Surface Parking

Project Amenities Barbeque Area, Business Center, Clubhouse, Fitness Center, Outdoor Fireplace, Outdoor Kitchen, Playground, Pool

Unit Amenities Carpeted Flooring, Ceiling Fans, Dishwasher, Garbage Disposal, Granite Countertops, Microwave Oven, Plank Flooring, Private Patios / Balconies, Range / Oven, Refrigerator with Icemaker, Stainless Steel Appliances, Washer / Dryer Connections Sale Summary Recorded Buyer 1069CC, LLC Marketing Time 1 Month(s) True Buyer N/A Buyer Type Private Investor Recorded Seller Villas Holdings 144 DE LLC Seller Type Private Investor True Seller Friedlam PArtners LLC Primary Verification County Records

Interest Transferred Leased Fee Type Sale Current Use N/A Date 10/30/2020 Proposed Use N/A Sale Price $27,050,000 Listing Broker Austin Green w/ Capstone Apartment Financing Cash to Seller Partners, LLC Selling Broker N/A Cash Equivalent $27,050,000 Doc # 18707 / 0275 Capital Adjustment $0 Adjusted Price $27,050,000

Transaction Summary plus Five-Year CBRE View History Cash Equivalent Transaction Date Transaction Type Buyer Seller Price Price/unit and /sf 10/2020 Sale 1069CC, LLC Villas Holdings 144 DE $27,050,000 $187,847 / $150.02 LLC 09/2018 Sale Villas Holdings 144 DE, Villas at Regal Manor, $20,100,000 $139,583 / $117.05 LLC LLC

© 2021 CBRE, Inc. Sale Residential - Multi-unit Garden No. 3 Units of Comparison Static Analysis Method Pro Forma (Stabilized) Eff Gross Inc Mult (EGIM) N/A Buyer's Primary Analysis Yield Capitalization Analysis Op Exp Ratio (OER) N/A Net Initial Yield/Cap. Rate 4.60% Adjusted Price / sf $150.02 Projected IRR N/A Adjusted Price / Unit $187,847 Actual Occupancy at Sale 97% Financial

Pro Forma Revenue Type Stabilized Period Ending N/A Source Buyer Price $27,050,000 Potential Gross Income N/A Economic Occupancy N/A Economic Loss N/A Effective Gross Income N/A Expenses N/A Net Operating Income $1,244,300 NOI / sf $6.90 NOI / Unit $8,641 EGIM N/A OER N/A Net Initial Yield/Cap. Rate 4.60% Map & Comments Villas at Regal Manor is a 144-unit multi-family garden property located at in Fort Mill, South Carolina. The property consists of six predominantly three-story apartment buildings along with a clubhouse/leasing office and maintenance building. The improvements were constructed in 2017 and are situated on an 11.47-acre site. The property features a mix of two- and three-bedroom floor plans with an average unit size of 1,193 square feet. Community amenities include a swimming pool, playground, clubhouse, fitness center, laundry facility, grilling area and outdoor fire pit. Unit features include fully equipped kitchens with stainless-steel appliances, granite countertops, wood-like vinyl flooring, crown molding and washer/dryer connections. The property was purchased in October 2020 for $27,050,000 or $187,847 per unit. The Charlotte, NC based Capstone Apartment Partners, LLC brokerage team, led by Austin Green marketed the property on behalf of the owner. Based on the buyer·s year one budget the reported NOI was $1,244,300, which equates to a 4.6% capitalization rate.

Property Name The Palmer Address 7407 Dominion Park Lane Charlotte, NC 28273 United States

Government Tax Agency Mecklenburg Govt./Tax ID 201-301-19 Unit Mix Detail Rate Timeframe Monthly Unit Type No. % Size (sf) Rent Rent / sf 1BR/1BA 18 6% 631 $990-$1,134 $1.68 1BR/1BA 36 11% 737 $1,058 $1.44 1BR/1BA 54 17% 757 $1,098 $1.45 1BR/1BA 60 19% 758 $1,123 $1.48 2BR/2BA 66 21% 1,064 $1,410 $1.33 2BR/2BA 72 23% 1,156 $1,491 $1.29 3BR/2BA 12 4% 1,262 $1,868 $1.48 Totals/Avg 318 $1,279 $1.39

Improvements Land Area 18.730 ac Status Existing Building Area N/A Year Built 2018 Total # of Units 318 Unit Year Renovated N/A Average Unit Size 921 sf Condition Good Floor Count 3 Exterior Finish Brick Veneer Property Features Detached Garages, Flat Roofs, Individual Split Systems, Surface Parking

Project Amenities Barbeque Area, Business Center, Clubhouse, Dog Grooming Station, Dog Park / Run, Fitness Center, Game Room, Lake, Outdoor Fireplace, Outdoor Kitchen, Pool, Yoga / Spin Room Unit Amenities Carpeted Flooring, Ceiling Fans, Dishwasher, Garbage Disposal, Garden Tubs, Microwave Oven, Plank Flooring, Private Patios / Balconies, Quartz Countertops, Range / Oven, Refrigerator with Icemaker, Stainless Steel Appliances, Tile Backsplash, Washer / Dryer Sale Summary Recorded Buyer BCORE MF WH Village Owner LLC Marketing Time N/A True Buyer The Blackstone Group, L.P. Buyer Type N/A Recorded Seller Whitehall Village Apartmetns LLC Seller Type N/A True Seller Dominion Realty Partners, LLC Primary Verification County Records

Interest Transferred Leased Fee Type Sale Current Use N/A Date 10/8/2020 Proposed Use N/A Sale Price $63,000,000 Listing Broker Walker & Dunlop Financing Cash to Seller Selling Broker N/A Cash Equivalent $63,000,000 Doc # 35162 / 407 Capital Adjustment $0 Adjusted Price $63,000,000

Transaction Summary plus Five-Year CBRE View History Cash Equivalent Transaction Date Transaction Type Buyer Seller Price Price/unit and /sf 10/2020 Sale BCORE MF WH Village Whitehall Village $63,000,000 $198,113 / $215.13 Owner LLC Apartmetns LLC

© 2021 CBRE, Inc. Sale Residential - Multi-unit Garden No. 4 Units of Comparison Static Analysis Method Pro Forma (Stabilized) Eff Gross Inc Mult (EGIM) N/A Buyer's Primary Analysis Price and Capitalization Analyses Op Exp Ratio (OER) N/A Net Initial Yield/Cap. Rate 4.50% Adjusted Price / sf $215.13 Projected IRR N/A Adjusted Price / Unit $198,113 Actual Occupancy at Sale 93% Financial

Pro Forma Revenue Type Stabilized Period Ending 9/30/2020 Source Broker Price $63,000,000 Potential Gross Income N/A Economic Occupancy N/A Economic Loss N/A Effective Gross Income N/A Expenses N/A Net Operating Income $2,835,000 NOI / sf $9.68 NOI / Unit $8,915 EGIM N/A OER N/A Net Initial Yield/Cap. Rate 4.50% Map & Comments The Palmer is a 318 unit garden style complex located off W Arrowood Road in Charlotte, North Carolina. This property was built at the end of 2018 and offers one-, two-, and three-bedroom units, with an average unit size of 921 square feet. Units feature quartz countertops, modern kitchen cabinets, wood-style plank flooring, stainless steel appliances, full size washer and dryers, tile backsplash, and patio/balcony. Community amenities include a swimming pool, clubhouse, fitness center, game room, grilling station, cyber cafe, pet park, pet wash, and outdoor areas. The property recently sold in October 2020 for $63,000,000 or $198,113 per unit. The broker indicated the property was 93% occupied at the time of the transaction are reported a cap rate of 4.50%, which equates to an NOI of $2,835,000. The purchase was the second in recent months by the purchaser and besides the Class A qualities and location of the site, the buyer lacked the size of the site to incorporate additional natural green space. We were unable to confirm the sale with the buyer, information was provided to us by the listing brokers with Walker & Dunlop.

Property Name The Station at Poplar Tent Address 50 Poplar Station Circle Concord, NC 28027 United States

Government Tax Agency Cabarrus Govt./Tax ID 4690-67-6267-0000 Unit Mix Detail Rate Timeframe Monthly Unit Type No. % Size (sf) Rent Rent / sf 1BR/1BA 12 4% 717 $1,055 $1.47 1BR/1BA 54 17% 724 $1,176 $1.62 1BR/1BA 12 4% 869 $1,262 $1.45 2BR/2BA 30 10% 1,198 $1,415 $1.18 2BR/2BA 45 14% 1,198 $1,420 $1.19 2BR/2BA 75 24% 1,213 $1,487 $1.23 2BR/2BA 48 15% 1,270 $1,516 $1.19 3BR/2BA 9 3% 1,536 $1,499 $0.98 3BR/2BA 27 9% 1,540 $1,446 $0.94 Totals/Avg 312 $1,393 $1.22

Improvements Land Area 16.830 ac Status Existing Net Rentable Area (NRA) 351,372 sf Year Built 2018 Total # of Units 312 Unit Year Renovated N/A Average Unit Size 1,139 sf Condition Excellent Floor Count 3 Exterior Finish Aggregate Property Features Gated / Controlled Access, Pitched Roofs, Surface Parking

Project Amenities Clubhouse, Dog Park / Run, Fitness Center, Pool, Storage Units

Unit Amenities 9-Foot Ceilings, Dishwasher, Garden Tubs, Gourmet Kitchen, Hardwood Flooring, Microwave Oven, Private Patios / Balconies, Quartz Countertops, Range / Oven, Refrigerator, Stainless Steel Appliances, Tile Backsplash Sale Summary Recorded Buyer CX Station at Poplar Tent, DST Marketing Time N/A True Buyer Carter Multifamily Buyer Type N/A Recorded Seller Concord Apartments, LLC Seller Type N/A True Seller Tynes Development Primary Verification Broker, CoStar

Interest Transferred Leased Fee Type Sale Current Use Multifamily Date 8/31/2020 Proposed Use Multifamily Sale Price $59,000,000 Listing Broker Cushman & Wakefield Multifamily Advisory Financing Market Rate Financing Group Selling Broker N/A Cash Equivalent $59,000,000 Doc # 14471 - 0065 Capital Adjustment $0 Adjusted Price $59,000,000

Transaction Summary plus Five-Year CBRE View History Cash Equivalent Transaction Date Transaction Type Buyer Seller Price Price/unit and /sf 08/2020 Sale CX Station at Poplar Tent, Concord Apartments, LLC $59,000,000 $189,103 / $167.91 DST

© 2021 CBRE, Inc. Sale Residential - Multi-unit Garden No. 5 Units of Comparison Static Analysis Method Pro Forma (Stabilized) Eff Gross Inc Mult (EGIM) N/A Buyer's Primary Analysis Static and Yield Capitalization Analyses Op Exp Ratio (OER) N/A Net Initial Yield/Cap. Rate 4.75% Adjusted Price / sf $167.91 Projected IRR N/A Adjusted Price / Unit $189,103 Actual Occupancy at Sale 90% Financial

Pro Forma Revenue Type Stabilized Period Ending N/A Source Buyer Price $59,000,000 Potential Gross Income N/A Economic Occupancy N/A Economic Loss N/A Effective Gross Income N/A Expenses N/A Net Operating Income $2,802,500 NOI / sf $7.98 NOI / Unit $8,982 EGIM N/A OER N/A Net Initial Yield/Cap. Rate 4.75% Map & Comments The Station at Poplar Tent is a 312-unit multifamily project located along Poplar Tent Road in Concord, NC. The improvements were constructed in 2017 and first move in was June 2017. The property offers a mix of studio, one-, two- and three bedroom floor plans with an average unit size of 1,139 square feet. Community amenities include a pool, dog park, fitness center, outdoor fire pit, clubhouse, yoga studio, outdoor kitchen, and dog spa. Units feature quartz countertops, tile backsplash, stainless steel appliances, 9' ceilings, and private patio/balconies. The property sold August 31, 2020 for $59,000,000, approximately $189,103 per unit. The broker with Cushman & Wakefield said the sale price was $59 million and the buyer reported a $57.5 million sale price, and is recorded with the county as such. The reasoning for the difference in the sale price was not confirmed but the broker was our source and utilized $59,000,000. The property had a 90% occupancy rate at the time of sale. The cap rate was reported at 4.75% which derived a $2,802,500 NOI.

Addendum C RENT COMPARABLE DATA SHEETS

Property Name The Bridges of Cabarrus Address 101 Three Mile Loop Kannapolis, NC 28083 United States

Government Tax Agency Cabarrus Govt./Tax ID 5612-85-8921-0000 Unit Mix Detail Rate Timeframe Monthly Unit Type No. % Size (sf) Rent Rent / sf 1BR / 1BA 57 24% 923 $1,070 $1.16 2BR / 2BA 96 40% 1,000 $1,150 $1.15 2BR / 2BA 37 15% 1,151 $1,270 $1.10 2BR / 2BA 32 13% 1,285 $1,335 $1.04 3BR / 2BA 18 8% 1,329 $1,485 $1.12 Totals/Avg 240 $1,199 $1.12

Improvements Land Area 15.424 ac Status Existing Net Rentable Area (NRA) 256,240 sf Year Built 2021 Total # of Units 240 Unit Year Renovated N/A Average Unit Size 1,068 sf Condition Excellent Floor Count 3 Exterior Finish Vinyl Siding Property Features N/A

Project Amenities Barbeque Area, Business Center, Clubhouse, Dog Grooming Station, Dog Park / Run, Fitness Center, Pool, Storage Units Unit Amenities Carpeted Flooring, Ceiling Fans, Dishwasher, Garbage Disposal, Granite Countertops, Keyless Entry, Microwave Oven, Plank Flooring, Private Patios / Balconies, Range / Oven, Refrigerator with Icemaker, Stainless Steel Appliances, Tile Backsplash, Washer / Dryer Connections Rental Survey Occupancy 84% Utilities Included in Rent None Lease Term 12 Mo(s). Rent Premiums Amenity Fee - $75 (trash/internet) Storage - $35 & $75 Tenant Profile middle income Concessions None Survey Date 05/2021 Owner N/A Survey Notes N/A Management N/A

© 2021 CBRE, Inc. Comparable Residential - Multi-unit Garden No. 1 Map & Comments The Bridges of Cabarrus is a 240-unit multifamily project located in Kannapolis, NC. The improvements were constructed in 2021 and the first move-ins were in March 2021. The property offers a mix of one-, two- and three bedroom floor plans with an average unit size of 1,068 square feet. Community amenities include a pool, fitness center, clubhouse, grilling area, dog park, community lounges, green space, and on site storage units. Units feature WD connections, tile backsplash, granite countertops, SS appliances, vinyl flooring, and ceiling fans. Average rent is $1,199 which equates to $1.12 per square foot. The tenant is responsible for the payment of all utilities. Rent premiums include a monthly $75 amenity fee that covers trash, internet, and package fee and there are two different size storage units available for $35 and $75. At the time of the survey, management was not offering any concession. Management reported occupancy at 84.03% with 100% preleased.

Property Name Coddle Creek Apartments Address 2024 Barr Road Concord, NC 28027 United States

Government Tax Agency Cabarrus Govt./Tax ID 4692-90-2138-0000 Unit Mix Detail Rate Timeframe Monthly Unit Type No. % Size (sf) Rent Rent / sf 1BR / 1BA 6 2% 601 $1,120 $1.86 1BR / 1BA 40 12% 618 $1,105 $1.79 1BR / 1BA 80 24% 710 $1,150 $1.62 2BR / 2BA 54 16% 1,032 $1,305 $1.26 2BR / 2BA 84 26% 1,119 $1,370 $1.22 2BR / 2BA 2 1% 1,168 $1,440 $1.23 3BR / 2.5BA 38 12% 1,395 $1,815 $1.30 3BR / 2.5BA 24 7% 1,618 $1,950 $1.21 Totals/Avg 328 $1,363 $1.36

Improvements Land Area 36.310 ac Status Existing Net Rentable Area (NRA) N/A Year Built 2020 Total # of Units 328 Unit Year Renovated N/A Average Unit Size 1,003 sf Condition Excellent Floor Count 3 Exterior Finish Brick Veneer Property Features N/A

Project Amenities Barbeque Area, Business Center, Clubhouse, Courtyard, Dog Park / Run, Fitness Center, Outdoor Fireplace, Pool

Unit Amenities Carpeted Flooring, Ceiling Fans, Dishwasher, Garbage Disposal, Granite Countertops, Microwave Oven, Plank Flooring, Private Patios / Balconies, Range / Oven, Refrigerator with Icemaker, Stainless Steel Appliances, Washer / Dryer Connections Rental Survey Occupancy 46% Utilities Included in Rent None Lease Term 12 Mo(s). Rent Premiums Trash Removal - $10, Garage - $150, Storage - $75 Tenant Profile Middle Income Concessions None Survey Date 05/2021 Owner N/A Survey Notes N/A Management N/A

© 2021 CBRE, Inc. Comparable Residential - Multi-unit Garden No. 2 Map & Comments Coddle Creek Apartments is a 328-unit multifamily project located in Concord, NC. The improvements were constructed in 2020 and the first move-ins were in November 2020. The property offers a mix of one-, two- and three bedroom floor plans with an average unit size of 1,003 square feet. Community amenities include a pool, fitness center, clubhouse, grilling area, dog park, community lounges, and a business center. Units feature WD connections, tile backsplash, granite countertops, SS appliances, and vinyl flooring. Average rent is $1,363 which equates to $1.36 per square foot. The tenant is responsible for the payment of all utilities. Rent premiums include $10 for trash removal and there are garages and storage units available for rent that rent for $150 and $75 respectively. At the time of the survey, management was not offering any concessions. Management reported occupancy at 45.71% with 76.38% preleased.

Property Name Hawthorne at the Glen Address 6255 Fernwood Drive Concord, NC 28027 United States

Government Tax Agency Cabarrus Govt./Tax ID 46919247850000 Unit Mix Detail Rate Timeframe Monthly Unit Type No. % Size (sf) Rent Rent / sf 1BR / 1BA 86 34% 776 $1,237 $1.59 2BR / 2BA 113 44% 1,114 $1,454 $1.31 2BR / 2BA 7 3% 1,169 $1,531 $1.31 2BR / 2BA 6 2% 1,191 $1,520 $1.28 3BR / 2BA 24 9% 1,258 $1,705 $1.36 2BR / 2BA 6 2% 1,329 $1,670 $1.26 2BR / 2BA 12 5% 1,347 $1,681 $1.25 Totals/Avg 254 $1,424 $1.38

Improvements Land Area 21.877 ac Status Existing Net Rentable Area (NRA) 262,277 sf Year Built 2019 Total # of Units 254 Unit Year Renovated N/A Average Unit Size 1,032 sf Condition Excellent Floor Count 3 Exterior Finish Vinyl Siding Property Features Detached Garages, Surface Parking

Project Amenities Barbeque Area, Billiards, Business Center, Clubhouse, Dog Grooming Station, Dog Park / Run, Fitness Center, Outdoor Kitchen, Playground, Pool, Yoga / Spin Room Unit Amenities Carpeted Flooring, Ceiling Fans, Dishwasher, Garbage Disposal, Granite Countertops, Keyless Entry, Microwave Oven, Plank Flooring, Private Patios / Balconies, Range / Oven, Refrigerator with Icemaker, Stainless Steel Appliances, Washer / Dryer Rental Survey Occupancy 98% Utilities Included in Rent none Lease Term 12 Mo(s). Rent Premiums $20-30 for floors & Trash / Pest Control : $33 Tenant Profile middle income Concessions None Survey Date 05/2021 Owner N/A Survey Notes N/A Management N/A

© 2021 CBRE, Inc. Comparable Residential - Multi-unit Garden No. 3 Map & Comments Hawthorne at the Glen is a 254-unit multifamily project located along Fernwood Road just north of I-85 & George W Liles Parkway in Concord, NC. The improvements were constructed in 2019 and the first move-ins were in November 2019. The property offers a mix of one-, two- and three bedroom floor plans with an average unit size of 1,032 square feet. Community amenities include a pool, fitness center, outdoor kitchen, dog park, cyber cafe, clubhouse, and playground. Units feature WD units, tile backsplash, granite countertops, SS appliances, vinyl flooring, and ceiling fans. Average rent is $1,424 which equates to $1.38 per square foot. The tenant is responsible for the payment of all utilities. Rent premiums include $20 to $30 for higher floors and there is a $33 per month fee for trash & pest control. At the time of the survey, management was not offering any concession. Management reported occupancy at 98.4%.

Property Name Laurel View Address 350 Joshua Place NW Concord, NC 28027 United States

Government Tax Agency Cabarrus Govt./Tax ID 5600-55-4885 Unit Mix Detail Rate Timeframe Monthly Unit Type No. % Size (sf) Rent Rent / sf 1BR/1BA 54 31% 816 $1,135 $1.39 2BR/2BA 96 55% 1,133 $1,298 $1.15 3BR/2BA 24 14% 1,303 $1,515 $1.16 Totals/Avg 174 $1,277 $1.21

Improvements Land Area 11.780 ac Status Existing Net Rentable Area (NRA) 184,104 sf Year Built 2018 Total # of Units 174 Unit Year Renovated N/A Average Unit Size 1,058 sf Condition Good Floor Count 3 Exterior Finish Fiber Cement Board Property Features Exterior Stairwells, Surface Parking

Project Amenities Barbeque Area, Car Wash Facility, Clubhouse, Dog Grooming Station, Dog Park / Run, Fitness Center, Pool

Unit Amenities Carpeted Flooring, Ceiling Fans, Dishwasher, Garbage Disposal, Granite Countertops, Microwave Oven, Plank Flooring, Private Patios / Balconies, Range / Oven, Refrigerator with Icemaker, Stainless Steel Appliances, Washer / Dryer Connections Rental Survey Occupancy 96% Utilities Included in Rent None Lease Term 12 Mo(s). Rent Premiums Valet Trash and Pest Control ($33) Tenant Profile Middle Income Concessions None Survey Date 05/2021 Owner N/A Survey Notes 704-452-4461 Management N/A

© 2021 CBRE, Inc. Comparable Residential - Multi-unit Garden No. 4 Map & Comments Laurel View is a 174-unit garden apartment located in Concord, North Carolina. The property was constructed in 2018 and features a mix of one-, two- and three-bedroom floor plans with an average unit size of 1,058-square feet. Community amenities include a swimming pool, poolside cabana and grilling area, fenced-in dog park, pet spa, 5,000-square foot clubhouse with fitness center and package lockers. Units feature plank flooring, fully equipped kitchens with stainless steel appliances, patio/balcony, granite countertops and washer/dryer connections. Average rent per unit is $1,277, which equates to $1.21 per square foot. Tenants are responsible for the payment of all utilities and there is an additional $33 monthly premium for valet trash and pest control. The property is currently 96% occupied and did not report any concessions.

Property Name Legacy Concord Address 5020 Avent Drive NW Concord, NC 28027 United States

Government Tax Agency Cabarrus Govt./Tax ID 5600-36-8743-0000 Unit Mix Detail Rate Timeframe Monthly Unit Type No. % Size (sf) Rent Rent / sf 1BR/1BA 70 20% 665 $1,275 $1.92 2BR/2BA 44 13% 1,080 $1,405 $1.30 2BR/2BA 52 15% 1,143 $1,480 $1.29 2BR/2BA 52 15% 1,220 $1,330 $1.09 2BR/2BA 44 13% 1,282 $1,435 $1.12 3BR/2BA 17 5% 1,291 $1,730 $1.34 3BR/2BA 69 20% 1,352 $1,950 $1.44 Totals/Avg 348 $1,507 $1.35

Improvements Land Area 45.029 ac Status Existing Net Rentable Area (NRA) 388,589 sf Year Built 2016 Total # of Units 348 Unit Year Renovated N/A Average Unit Size 1,117 sf Condition Good Floor Count 3 Exterior Finish Aggregate Property Features Surface Parking

Project Amenities Clubhouse, Fitness Center, Playground, Pool

Unit Amenities Dishwasher, Private Patios / Balconies, Refrigerator, Washer / Dryer, Washer / Dryer Connections Rental Survey Occupancy 97% Utilities Included in Rent None Lease Term 12 Mo(s). Rent Premiums Trash & Pest Control : $25 Tenant Profile middle income Concessions None Survey Date 05/2021 Owner Goldberg Companies, Inc. Survey Notes 704-930-0062 Management GCI Residential

© 2021 CBRE, Inc. Comparable Residential - Multi-unit Garden No. 5 Map & Comments Legacy Concord Apartments is a 348-unit multifamily property located in Concord, North Carolina. The improvements were constructed in 2016 and feature a mix of one-, two- and three-bedroom floor plans with an average unit size of 1,117 square feet. Unit amenities including quartz counters in kitchens, marble counter tops in baths, 42" kitchen wall cabinets, 9 foot ceilings, garden soaking tubs, designer flooring and light fixtures, patios/balconies with storage, and other upscale features found in high-end homes. Community amenities include bocce ball, outdoor billiards, fire pit, saltwater swimming pool with swim lanes, fitness center with virtual training, business center, and clubhouse. Current rents average $1,507 per month which equates to $1.35 per square foot. There is an additional $25 premium for Trash & Pest Control. At the time of our survey, management was not offering any concessions and the property is currently 97.1% occupied.

Property Name The Station at Poplar Tent Address 50 Poplar Station Circle Concord, NC 28027 United States

Project Amenities Clubhouse, Dog Park / Run, Fitness Center, Pool, Storage Units

Unit Amenities 9-Foot Ceilings, Dishwasher, Garden Tubs, Gourmet Kitchen, Hardwood Flooring, Microwave Oven, Private Patios / Balconies, Quartz Countertops, Range / Oven, Refrigerator, Stainless Steel Appliances, Tile Backsplash Rental Survey Occupancy 97% Utilities Included in Rent Water Lease Term 12 Mo(s). Rent Premiums Cable, Internet, Trash, Pest Control ($90) Tenant Profile Middle Income Concessions $500 off 1BR & $1,000 off 2BR Survey Date 05/2021 Owner N/A Survey Notes 704.981.4313 Management N/A

© 2021 CBRE, Inc. Comparable Residential - Multi-unit Garden No. 6 Map & Comments The Station at Poplar Tent is a 312-unit multifamily project located along Poplar Tent Road in Concord, NC. The improvements were constructed in 2017 and first move in was June 2017. The property offers a mix of studio, one-, two- and three bedroom floor plans with an average unit size of 1,139 square feet. Community amenities include a pool, dog park, fitness center, outdoor fire pit, clubhouse, yoga studio, outdoor kitchen, and dog spa. Units feature quartz countertops, tile backsplash, stainless steel appliances, 9' ceilings, and private patio/balconies. Average rent is $1,393 which equates to $1.22 per square foot. The tenant is responsible for the payment of all utilities except for water. Rent premiums include and $90 fee which covers cable, internet, trash, and pest control. At the time of the survey, management was not offering any concessions and occupancy was reported at 97.3%.

Property Name Skybrook Apartment Homes Address 90 Oak Hill Court Huntersville, NC 28078 United States

Government Tax Agency Cabarrus Govt./Tax ID 46705666960000 Unit Mix Detail Rate Timeframe Monthly Unit Type No. % Size (sf) Rent Rent / sf 1BR/1BA 96 36% 883 $1,333 $1.51 2BR/2BA 68 25% 1,114 $1,670 $1.50 2BR/2BA 68 25% 1,126 $1,655-$1,687 $1.48 3BR/2BA 36 13% 1,388 $1,961-$2,190 $1.50 Totals/Avg 268 $1,604 $1.50

Improvements Land Area 24.291 ac Status Existing Net Rentable Area (NRA) 287,056 sf Year Built 2018 Total # of Units 268 Unit Year Renovated N/A Average Unit Size 1,071 sf Condition New Floor Count 3 Exterior Finish Fiber Cement Plank Property Features Surface Parking

Project Amenities Car Wash Facility, Clubhouse, Dog Park / Run, Fitness Center, Playground, Pool, Yoga / Spin Room

Unit Amenities Dishwasher, Granite Countertops, Microwave Oven, Plank Flooring, Range / Oven, Refrigerator, Stainless Steel Appliances, Washer / Dryer Rental Survey Occupancy 96% Utilities Included in Rent None Lease Term 12 Mo(s). Rent Premiums Cable, Internet, Trash, Pest Control Bundle ($80-$90) Tenant Profile Middle Income Concessions None Survey Date 05/2021 Owner N/A Survey Notes 704-387-6451 Management N/A

© 2021 CBRE, Inc. Comparable Residential - Multi-unit Garden No. 7 Map & Comments Skybrook Apartment Homes is a 268 unit apartment community located in Huntersville, NC. The improvements were built in 2018 and offer one, two, and three bedroom units with an average square footage of 1,071 square feet. Property amenities include a yoga studio, fitness center, package acceptance lockers, saltwater pool, dog park, car wash, game room, outdoor resident lounge, and playground. Units include crown molding, wood plank flooring, quartz counter tops, stainless steel appliances, and water/dryer units. Average rent per unit $1,604, which equates to $1.50 per square foot. No utilities are included in rent and there is a bundle for cable, internet, trash, and pest control for $80 to $90 depending on floor. At the time of survey, management was not offering any specials and reported a current occupancy of 95.9%.

Addendum D OPERATING DATA

Mar‐21 Apr‐21 May‐21 Jun‐21 Jul‐21 Aug‐21 Sep‐21 Oct‐21 Nov‐21 Dec‐21 Jan‐22 Feb‐22 Mar‐22 Apr‐22 May‐22 ITEMS % of Budget Budget 0.00 Site Work 17.20%$ 1,879,712.00 $ 1,571,796.00 $ 5,914.00 $ 62,596.00 $ 239,406.00 0.10 Mobilization & Starter Fee 1.19% $ 130,566.00 0.20 Grading 2.18% $ 238,394.00 0.30 Site Surveing 0.64% $ 69,500.00 0.40 Site Asphalt and Concrete 4.81% $ 525,642.00 0.50 Storm Drainage Improvements 0.47% $ 50,953.00 0.60 Borrow C/O 0.15% $ 16,500.00 0.70 Bridging #57 Stone C/O 0.24% $ 26,000.00 0.80 #500 Woven Fabric C/O 0.02% $ 2,500.00 0.90 Storm Drainage 2.66% $ 290,751.00 0.10 Erosion Control 0.11% $ 11,660.00 0.11 Sanitary Sewer 0.96% $ 105,352.00 0.12 Water Main Private 2.32% $ 253,364.00 0.13 Water Main Public 1.14% $ 124,330.00 0.14 Pads Reshoring & Proofroll C/O 0.08% $ 9,200.00 0.15 C/O 0.23% $ 25,000.00

1.00 Building 1000 1.01 Contractors Fee 4.92% $ 538,000.00 $ 44,833 $ 44,833 $ 44,833 $ 44,833 $ 44,833 $ 44,833 $ 44,833 $ 44,833 $ 44,833 $ 44,833 $ 44,833 $ 44,833 1.02 Overhead & General Conditions 3.54% $ 387,000.00 $ 19,280 $ 12,970 $ 32,250 $ 32,250 $ 32,250 $ 32,250 $ 32,250 $ 32,250 $ 32,250 $ 32,250 $ 32,250 $ 32,250 $ 32,250 1.03 Slab on Grade 0.81% $ 89,071.25 $ 5,000 $ 84,071 1.04 Framing Package 1.76% $ 191,964.54 $ 191,965 1.05 Sheathing Allowance 0.35% $ 38,691.00 $ 38,691 1.06 Framing Labor Allowance 1.06% $ 115,950.00 $ 42,500 $ 50,220 $ 23,230 1.07 Floor Trusses 0.71% $ 77,629.92 $ 45,350 $ 22,579 $ 9,701 1.08 Roof Trusses 0.48% $ 52,636.30 $ 34,500 $ 18,136 1.09 Insulation 0.33% $ 35,700.00 $ 25,000 $ 10,700 1.10 Siding Allowance 0.46% $ 50,000.00 $ 25,000 $ 25,000 1.11 Windows 0.26%$ 28,036.70 $ 28,037 1.12 Exterior Doors 0.31% $ 33,920.80 $ 33,921 1.13 Stairs 0.50% $ 54,750.00 $ 54,750 1.14 Sheetrock Allowance 0.83% $ 91,000.00 $ 72,000 $ 19,000 1.15 Painting Interior Only 0.40% $ 43,427.20 $ 43,427 1.16 Painting Exterior Allowance 0.13% $ 14,000.00 $ 14,000 1.17 Trim 0.53% $ 58,322.00 $ 30,000 $ 28,322 1.18 Flooring 0.39% $ 42,659.00 $ 42,659 1.19 Cabinets Allowance 0.96% $ 105,000.00 $ 75,000 $ 30,000 1.20 Appliances 0.46% $ 50,125.88 $ 50,126 1.21 Roofing 0.19% $ 20,770.00 $ 20,770 1.22 Gutters and Downspouts 0.04% $ 4,554.00 $ 4,554 1.23 Gypcrete 0.34% $ 36,680.00 $ 36,680 1.24 Door & Bath Hardware, Shelving 0.22% $ 24,303.05 $ 24,303 1.25 HVAC 1.19% $ 130,111.00 $ 35,200 $ 55,405 $ 23,405 $ 16,101 1.26 Plumbing Allowance ‐labor 0.59% $ 65,000.00 $ 3,000 $ 17,000 $ 15,000 $ 20,000 $ 10,000 1.27 Plumbing Allowance ‐ material 0.78% $ 85,000.00 $ 2,000 $ 22,000 $ 15,000 $ 30,000 $ 12,500 $ 3,500 1.28 Electrical Allowance ‐ labor 1.69% $ 185,000.00 $ 30,833 $ 30,833 $ 30,833 $ 30,833 $ 30,833 $ 30,833 1.29 Sprinkler 0.53% $ 58,071.84 $ 18,400 $ 23,500 $ 10,400 $ 5,772 1.30 Final Clean 0.11% $ 11,593.00 $ 11,593

2.00 Building 2000 2.01 Slab on Grade 0.85% $ 93,071.25 $ 5,000 $ 88,071 2.02 Framing Package 1.76% $ 191,964.54 $ 191,965 2.03 Sheathing Allowance 0.35% $ 38,691.00 $ 38,691 2.04 Framing Labor Allowance 1.06% $ 115,950.00 $ 42,500 $ 50,220 $ 23,230 2.05 Floor Trusses 0.71% $ 77,629.92 $ 45,350 $ 22,579 $ 9,701 2.06 Roof Trusses 0.48% $ 52,636.30 $ 34,500 $ 18,136 2.07 Insulation 0.33% $ 35,700.00 $ 25,000 $ 10,700 2.08 Siding Allowance 0.46% $ 50,000.00 $ 25,000 $ 25,000 2.09 Windows 0.26%$ 28,036.70 $ 28,037 2.10 Exterior Doors 0.31% $ 33,920.80 $ 33,921 2.11 Stairs 0.50% $ 54,750.00 $ 54,750 2.12 Sheetrock Allowance 0.83% $ 91,000.00 $ 72,000 $ 19,000 2.13 Painting Interior Only 0.40% $ 43,427.20 $ 43,427 2.14 Painting Exterior Allowance 0.13% $ 14,000.00 $ 14,000 2.15 Trim 0.53% $ 58,322.00 $ 30,000 $ 28,322 2.16 Flooring 0.39% $ 42,659.00 $ 42,659 2.17 Cabinets Allowance 0.96% $ 105,000.00 $ 75,000 $ 30,000 2.18 Appliances 0.46% $ 50,125.88 $ 50,126 2.19 Roofing 0.19% $ 20,770.00 $ 20,770 2.20 Gutters and Downspouts 0.04% $ 4,554.00 $ 4,554 2.21 Gypcrete 0.34% $ 36,680.00 $ 36,680 2.22 Door & Bath Hardware, Shelving 0.22% $ 24,303.05 $ 24,303 2.23 HVAC 1.19% $ 130,111.00 $ 35,200 $ 55,405 $ 23,405 $ 16,101 2.24 Plumbing Allowance ‐labor 0.59% $ 65,000.00 $ 2,000 $ 18,000 $ 15,000 $ 20,000 $ 10,000 2.25 Plumbing Allowance ‐ material 0.78% $ 85,000.00 $ 25,000 $ 15,000 $ 30,000 $ 12,500 $ 2,500 2.26 Electrical Allowance‐ labor 1.69% $ 185,000.00 $ 30,833 $ 30,833 $ 30,833 $ 30,833 $ 30,833 $ 30,833

3.00 Building 3000 3.01 Slab on Grade 0.85% $ 93,071.25 $ 5,000 $ 88,071 3.02 Framing Package 1.76% $ 191,964.54 $ 191,965 3.03 Sheathing Allowance 0.35% $ 38,691.00 $ 2,618 $ 17,902 $ 18,171 3.04 Framing Labor Allowance 1.06% $ 115,950.00 $ 42,500 $ 50,220 $ 23,230 3.05 Floor Trusses 0.71% $ 77,629.92 $ 45,350 $ 22,579 $ 9,701 3.06 Roof Trusses 0.48% $ 52,636.30 $ 34,500 $ 18,136 3.07 Insulation 0.33% $ 35,700.00 $ 25,000 $ 10,700 3.08 Siding Allowance 0.46% $ 50,000.00 $ 25,000 $ 25,000 3.09 Windows 0.26%$ 28,036.70 $ 28,037 3.10 Exterior Doors 0.31% $ 33,920.80 $ 33,921 3.11 Stairs 0.50% $ 54,750.00 $ 54,750 3.12 Sheetrock Allowance 0.83% $ 91,000.00 $ 72,000 $ 19,000 3.13 Painting Interior Only 0.40% $ 43,427.20 $ 43,427 3.14 Painting Exterior Allowance 0.13% $ 14,000.00 $ 14,000 3.15 Trim 0.53% $ 58,322.00 $ 30,000 $ 28,322 3.16 Flooring 0.39% $ 42,659.00 $ 42,659 3.17 Cabinets Allowance 0.96% $ 105,000.00 $ 75,000 $ 30,000 3.18 Appliances 0.46% $ 50,125.88 $ 50,126 3.19 Roofing 0.19% $ 20,770.00 $ 20,770 3.20 Gutters and Downspouts 0.04% $ 4,554.00 $ 4,554 3.21 Gypcrete 0.34% $ 36,680.00 $ 36,680 3.22 Door & Bath Hardware, Shelving 0.22% $ 24,303.05 $ 24,303 3.23 HVAC 1.19% $ 130,111.00 $ 35,200 $ 55,405 $ 23,405 $ 16,101 3.24 Plumbing Allowance ‐ labor 0.59% $ 65,000.00 $ 20,000 $ 15,000 $ 20,000 $ 10,000 3.25 Plumbing Allowance ‐ material 0.78% $ 85,000.00 $ 25,000 $ 15,000 $ 30,000 $ 12,500 $ 2,500 3.26 Electrical Allowance ‐ labor 1.69% $ 185,000.00 $ 30,833 $ 30,833 $ 30,833 $ 30,833 $ 30,833 $ 30,833 3.27 Sprinkler 0.53% $ 58,071.84 $ 18,400 $ 23,500 $ 10,400 $ 5,772 3.28 Final Clean 0.11% $ 11,593.00 $ 11,593

4.00 Building 4000 4.01 Slab on Grade 0.92% $ 100,071.25 $ 5,000 $ 95,071 4.02 Framing Package 1.76% $ 191,964.54 $ 191,965 4.03 Sheathing Allowance 0.35% $ 38,691.00 $ 20,520 $ 18,171 4.04 Framing Labor Allowance 1.06% $ 115,950.00 $ 42,500 $ 50,220 $ 23,230 4.05 Floor Trusses 0.71% $ 77,629.92 $ 45,350 $ 22,579 $ 9,701 4.06 Roof Trusses 0.48% $ 52,636.30 $ 34,500 $ 18,136 4.07 Insulation 0.33% $ 35,700.00 $ 25,000 $ 10,700 4.08 Siding Allowance 0.46% $ 50,000.00 $ 25,000 $ 25,000 4.09 Windows 0.26%$ 28,036.70 $ 28,037 4.10 Exterior Doors 0.31% $ 33,920.80 $ 33,921 4.11 Stairs 0.50% $ 54,750.00 $ 54,750 4.12 Sheetrock Allowance 0.83% $ 91,000.00 $ 72,000 $ 19,000 4.13 Painting Interior Only 0.40% $ 43,427.20 $ 43,427 4.14 Painting Exterior Allowance 0.13% $ 14,000.00 $ 14,000 4.15 Trim 0.53% $ 58,322.00 $ 30,000 $ 28,322 4.16 Flooring 0.39% $ 42,659.00 $ 42,659 4.17 Cabinets Allowance 0.96% $ 105,000.00 $ 75,000 $ 30,000 4.18 Appliances 0.46% $ 50,125.88 $ 50,126 4.19 Roofing 0.19% $ 20,770.00 $ 20,770 4.20 Gutters and Downspouts 0.04% $ 4,554.00 $ 4,554 4.21 Gypcrete 0.34% $ 36,680.00 $ 36,680 4.22 Door & Bath Hardware, Shelving 0.22% $ 24,303.05 $ 24,303 4.23 HVAC 1.19% $ 130,111.00 $ 35,200 $ 55,405 $ 23,405 $ 16,101 4.24 Plumbing Allowance ‐ labor 0.59% $ 65,000.00 $ 20,000 $ 15,000 $ 20,000 $ 10,000 4.25 Plumbing Allowance ‐ material 0.78% $ 85,000.00 $ 25,000 $ 15,000 $ 30,000 $ 12,500 $ 2,500 4.26 Electrical Allowance ‐ labor 1.69% $ 185,000.00 $ 30,833 $ 30,833 $ 30,833 $ 30,833 $ 30,833 $ 30,833 4.27 Sprinkler 0.53% $ 58,071.84 $ 18,400 $ 23,500 $ 10,400 $ 5,772 4.28 Final Clean 0.11% $ 11,593.00 $ 11,593

5.00 Club House 5.01 Slab on Grade 0.30% $ 33,099.15 $ 2,000 $ 31,099 5.02 Framing Package 0.21% $ 23,326.62 $ 23,327 5.03 Sheathing Allowance 0.05% $ 5,126.00 $ 5,126 5.04 Framing Labor Allowance 0.15% $ 16,305.00 $ 16,305 5.05 Roof Trusses 0.22% $ 24,405.91 $ 24,406 5.06 Insulation 0.05% $ 5,285.00 $ 5,285 5.07 Siding Allowance 0.04% $ 3,963.00 $ 3,963 5.08 Windows 0.05%$ 5,323.29 $ 5,323 5.09 Sheetrock Allowance 0.11% $ 11,500.00 $ 11,500 5.10 Painting Interior Only 0.05% $ 5,071.26 $ 5,071 5.11 Painting Exterior Allowance 0.07% $ 7,500.00 $ 7,500 5.12 Trim 0.20% $ 21,416.11 $ 21,416 5.13 Flooring 0.16% $ 18,000.00 $ 18,000 5.14 Cabinets Allowance 0.05% $ 5,000.00 $ 5,000 5.15 Appliances 0.01% $ 645.65 $ 646 5.16 Roofing 0.08% $ 8,835.00 $ 8,835 5.17 Gutters and Downspouts 0.01% $ 1,228.20 $ 1,228 5.18 Door & Bath Hardware, Shelving 0.16% $ 16,954.57 $ 16,955 5.19 HVAC 0.30% $ 32,850.00 $ 32,850

© 2021 CBRE, Inc. 5.20 Plumbing Allowance ‐ labor 0.18% $ 20,000.00 $ 10,000 $ 10,000 5.21 Plumbing Allowance ‐ material 0.09% $ 10,000.00 $ 5,000 $ 5,000 5.22 Electrical Allowance ‐ labor 0.29% $ 32,000.00 $ 9,000 $ 12,000 $ 11,000 5.23 Pool 1.10% $ 120,000.00 $ 60,000 $ 40,000 $ 20,000 5.24 Final Clean 0.02% $ 2,681.25 $ 2,681

6.00 Pump House 6.01 Slab on Grade 0.01% $ 1,540.00 $ 1,540 6.02 Framing Package 0.01% $ 1,283.11 $ 1,283 6.03 Sheathing Allowance 0.00% $ 350.00 $ 350 6.04 Framing Labor Allowance 0.01% $ 850.00 $ 850 6.05 Insulation 0.00% $ 430.00 $ 430 6.06 Siding Allowance 0.02% $ 2,000.00 $ 2,000 6.07 Exterior Doors 0.01% $ 643.50 $ 644 6.08 Sheetrock Allowance 0.01% $ 900.00 $ 900 6.09 Painting Exterior Allowance 0.01% $ 1,500.00 $ 1,500 6.10 Roofing 0.00% $ 495.00 $ 495 6.11 Gutters and Downspouts 0.00% $ 287.00 $ 287 6.12 Door & Bath Hardware, Shelving 0.00% $ 48.26 $ 48 6.13 Plumbing Allowance 0.01%$ 1,000.00 $ 1,000 6.14 Sprinkler 0.08% $ 8,580.00 $ 8,580 6.15 Electrical Allowance 0.03%$ 3,000.00 $ 3,000 6.16 Final Clean 0.00% $ 100.00 $ 100

Allowances 7.00 Retaining Walls & Labor Allowance 1.69% $ 185,000.00 $ 45,000 $ 40,000 $ 50,000 $ 50,000 8.00 Landscaping & Irrigation Lab & Mat Allowance 0.82% $ 90,000.00 $ 25,000 $ 25,000 $ 25,000 $ 15,000 9.00 Erosion Control 0.09% $ 10,000.00 $ 10,000 10.00 Sidewalk Allowance 0.64% $ 69,713.00 $ 35,000 $ 34,713 11.00 Sand Filter Labor & Mats Allowance 0.14% $ 15,000.00 $ 15,000 12.00 Site Signage Labor & Mat Allowance 0.27% $ 30,000.00 $ 30,000 13.00 Pool Deck & Rails Lab & Mat Allowance 0.25% $ 26,805.00 $ 26,805 14.00 Facilities Allowance 0.46% $ 50,000.00 $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 5,000 LESS RETAINAGE $ (3,542) $ 3,542 Soft Costs $ 300,000.00 $ 31,135 $ 30,000 $ 30,000 $ 30,000 $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ 15,000 Contingency 5.0% $ 452,495.54

Totals 100%$ 9,802,406.34 $ 130,652 $ 669,534 $ 1,051,439 $ 881,736 $ 938,162 $ 951,846 $ 1,078,507 $ 1,188,613 $ 953,817 $ 700,169 $ 462,822 $ 243,311 $ 107,219 $ 9,357,827

© 2021 CBRE, Inc. Description Budget Land $ 689,000.00 Soft Costs Architect Fees $ 279,615.87 Civil Engineering Fees $ 121,349.56 Blueprints $ 5,000.00 CDM+R engineering $ 44,154.42 PZR Report $ 1,150.00 Appraisal fee $ 1,800.00 Course‐of‐construction insurance $ 125,000.00 Zoning Consultants, Liasion to City $ 165,000.00 Land taxes $ 17,684.00 Soil tests and Geotech report $ 16,650.00 Land survey $ 11,450.00 Accounting $ 20,000.00 Legal $ 80,000.00 Feasibility $ 8,000.00 Permits (City of Concord) $ 324,258.00 Impact fees $ 281,795.93 Prior lender U/W fees $ 145,000.00 Keystone National U/W fees $ 45,000.00 Miscellaneous (Marketing, travel) $ 50,000.00

Site Costs $ 822,000.00

Hard Costs (GMP Contract) Site work $ 1,879,712.00 Vertical Contract $ 9,049,911.50 Vertical Contract (Prior GC) $ 227,500.00

Construction Financing $ 1,113,750.00 Loan Origination Fees $ 225,000.00 Loan sourcing/broker fees $ 168,500.00 Loan extension/exit Fees $ 168,500.00

Developer Contingency & FFE $ 452,500.00 Soft Cost contingency $ 360,000.00

Total (Including Financing costs) $ 16,899,281.28

© 2021 CBRE, Inc. Assumption Debt Rent Roll Residual Value Summary of Risk and Returns Property Name Emery Village Apts Loan Amount $ 15,750,000 Type Units Mo.Rent Terminal Cap Rate 5.5% Unlevered IRR 7.83% Number of Units 132 Interest Rate 4.0% 1bd/1ba 36 $ 850 Selling Costs 2% Unlevered EMx 1.88X Purchase Price $ 21,000,000 Amortization 360 months 2bd/2ba 96 $ 1,050 Levered IRR 14.70% Going‐in Cap Rate 5.0% Monthly Payment $ 75,193 Total 132 $ 131,400 Levered EMx 3.44X

Year 2022 Year 2023 Year 2024 Year 2025 Year 2026 Year 2027 Year 2028 Year 2029 Year 2030 Year 2031 Year 2032 Income Rent Growth 0% 3.5% 3% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% Rent $ 1,576,800 $ 1,631,988 $ 1,680,948 $ 1,722,971 $ 1,766,046 $ 1,810,197 $ 1,855,452 $ 1,901,838 $ 1,949,384 $ 1,998,119 $ 2,048,071 Potential Gross Income $ 1,576,800 $ 1,631,988 $ 1,680,948 $ 1,722,971 $ 1,766,046 $ 1,810,197 $ 1,855,452 $ 1,901,838 $ 1,949,384 $ 1,998,119 $ 2,048,071

Vacancy 10% 8% 7% 5% 5% 5% 5% 5% 5% 5% 5% Vacancy $ 157,680 $ 130,559 $ 117,666 $ 86,149 $ 88,302 $ 90,510 $ 92,773 $ 95,092 $ 97,469 $ 99,906 $ 102,404 Effective Gross Income $ 1,419,120 $ 1,501,429 $ 1,563,281 $ 1,636,823 $ 1,677,743 $ 1,719,687 $ 1,762,679 $ 1,806,746 $ 1,851,915 $ 1,898,213 $ 1,945,668

Expenses Inflation 0% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% Lawn/Snow removal $ 30,000 $ 30,600 $ 31,212 $ 31,836 $ 32,473 $ 33,122 $ 33,785 $ 34,461 $ 35,150 $ 35,853 $ 36,570 Management $ 113,530 $ 115,800 $ 118,116 $ 120,479 $ 122,888 $ 125,346 $ 127,853 $ 130,410 $ 133,018 $ 135,678 $ 138,392 Repairs and Maintenance $ ‐ $ 45,000 $ 45,900 $ 46,818 $ 47,754 $ 48,709 $ 49,684 $ 50,677 $ 51,691 $ 52,725 $ 53,779 Miscellaneous $ 20,000 $ 20,400 $ 20,808 $ 21,224 $ 21,649 $ 22,082 $ 22,523 $ 22,974 $ 23,433 $ 23,902 $ 24,380 Insurance $ 50,417 $ 51,425 $ 52,454 $ 53,503 $ 54,573 $ 55,664 $ 56,778 $ 57,913 $ 59,072 $ 60,253 $ 61,458 Prop. Taxes $ 145,200 $ 148,104 $ 151,066 $ 154,087 $ 157,169 $ 160,313 $ 163,519 $ 166,789 $ 170,125 $ 173,527 $ 176,998 Operating Expenses $ 359,147 $ 366,330 $ 373,656 $ 381,129 $ 388,752 $ 396,527 $ 404,457 $ 412,547 $ 420,797 $ 429,213 $ 437,798

Net Operating Income $ 1,059,973 $ 1,135,099 $ 1,189,625 $ 1,255,694 $ 1,288,992 $ 1,323,160 $ 1,358,222 $ 1,394,200 $ 1,431,117 $ 1,468,999 $ 1,507,870 CapEx Reserves $ 26,400 $ 26,928 $ 27,467 $ 28,016 $ 28,576 $ 29,148 $ 29,731 $ 30,325 $ 30,932 $ 31,550 Cash Flow from Operations $ 1,033,573 $ 1,108,171 $ 1,162,159 $ 1,227,678 $ 1,260,415 $ 1,294,012 $ 1,328,491 $ 1,363,874 $ 1,400,185 $ 1,437,449

Debt Service $ 902,315 $ 902,315 $ 902,315 $ 902,315 $ 902,315 $ 902,315 $ 902,315 $ 902,315 $ 902,315 $ 902,315 Before Tax Cash Flow $ 131,258 $ 205,857 $ 259,844 $ 325,363 $ 358,100 $ 391,697 $ 426,176 $ 461,559 $ 497,871 $ 535,134

Risk Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Loan Balance ($15,472,637) ($15,183,973) ($14,883,549) ($14,570,886) ($14,245,483) ($13,906,824) ($13,554,367) ($13,187,550) ($12,805,789) ($12,408,474) Cap Rate 5.0% 5.0% 5.0% 5.5% 5.5% 5.5% 5.5% 5.5% 5.5% 5.5% Property Value $21,199,468 $22,701,989 $23,792,504 $22,830,791 $23,436,209 $24,057,455 $24,694,940 $25,349,082 $26,020,313 $26,709,076 DSCR 1.17X 1.26X 1.32X 1.39X 1.43X 1.47X 1.51X 1.55X 1.59X 1.63X Debt Yield 6.85% 7.48% 7.99% 8.62% 9.05% 9.51% 10.02% 10.57% 11.18% 11.84%

Returns Year 2021 Year 2022 Year 2023 Year 2024 Year 2025 Year 2026 Year 2027 Year 2028 Year 2029 Year 2030 Year 2031 Purchase $ (21,000,000) Cash Flow from operations $ 1,033,573 $ 1,108,171 $ 1,162,159 $ 1,227,678 $ 1,260,415 $ 1,294,012 $ 1,328,491 $ 1,363,874 $ 1,400,185 $ 1,437,449 Sale $ 27,415,822 Selling Costs $ (548,316) Total Unlevered Cash Flow $ (21,000,000) $ 1,033,573 $ 1,108,171 $ 1,162,159 $ 1,227,678 $ 1,260,415 $ 1,294,012 $ 1,328,491 $ 1,363,874 $ 1,400,185 $ 28,304,954 Free and Clear Return 6.01% 4.92% 5.28% 5.53% 5.85% 6.00% 6.16% 6.33% 6.49% 6.67% 6.84% Unlevered IRR 7.83% Unlevered Equity Multiple 1.88X

Purchase $ (21,000,000) Loan Funding $ 15,750,000 Before Tax Cash Flow $ 131,258 $ 205,857 $ 259,844 $ 325,363 $ 358,100 $ 391,697 $ 426,176 $ 461,559 $ 497,871 $ 535,134 Sale $ 27,415,822 Loan Payoff ($12,408,474) Selling Costs $ (548,316) Total Levered Cash Flow $ (5,250,000) $ 131,258 $ 205,857 $ 259,844 $ 325,363 $ 358,100 $ 391,697 $ 426,176 $ 461,559 $ 497,871 $ 14,994,166 Cash on Cash Return 6.84% 2.50% 3.92% 4.95% 6.20% 6.82% 7.46% 8.12% 8.79% 9.48% 10.19% Levered IRR 14.70% Levered Equity Multiple 3.44X

Addendum E LEGAL DESCRIPTION

Addendum F CLIENT CONTRACT INFORMATION

VALUATION & ADVISORY SERVICES Proposal and Contract for Services

CBRE, Inc. 201 S. College Street, Ste 1700 Charlotte, NC 28244 www.cbre.us/valuation May 12, 2021 Benjamin Tedder, MAI VAS - Director Sushanth Charabuddi Co-Founder Eagle I Property Group One Boston Place, Suite 2600 Boston, Massachusetts, 02108, United States Phone: 617-933-7244 Email: [email protected]

RE: Assignment Agreement Multi-Family Residential Emery Village Apartments, 174 Emery Avenue Northwest Concord, NC 28104

Dear Mr. Charabuddi: We are pleased to submit this proposal and our Terms and Conditions for this assignment.

PROPOSAL SPECIFICATIONS

Purpose: To estimate the Market Value of the referenced real estate and the Insurable Value Premise: As Is, As Complete, & As Stabilized Rights Appraised: Leased Fee Intended Use: Internal Decision Making purposes Intended User: The intended user is Eagle I Property Group (“Client”), and such other parties and entities (if any) expressly recognized by CBRE as “Intended Users” (as further defined herein). Reliance: Reliance on any reports produced by CBRE under this Agreement is extended solely to parties and entities expressly acknowledged in a signed writing by CBRE as Intended Users of the respective reports, provided that any conditions to such acknowledgement required by CBRE or hereunder have been satisfied. Parties or entities other than Intended Users who obtain a copy of the report or any portion thereof (including Client if it is not named as an Intended User), whether as a result of its direct dissemination or by any other means, may not rely upon any opinions or conclusions contained in the report or such portions thereof, and CBRE will not be responsible for any unpermitted use of the report, its conclusions or contents or have any liability in connection therewith.

VALUATION & ADVISORY SERVICES Sushanth Charabuddi Assignment Agreement Page 2 of 8 May 12, 2021

Inspection: CBRE will conduct a physical inspection of both the interior and exterior of the subject property, as well as its surrounding environs on the effective date of appraisal. Valuation Approaches: All three traditional approaches to value will be considered and utilized as appropriate. Report Type: Standard Appraisal Report Appraisal Standards: USPAP Appraisal Fee: $5,250 Expenses: Fee includes all associated expenses Retainer & A full retainer of $5,250 is due prior to commencement of the Payment Terms: outlined services. The fee is considered earned upon delivery of the draft report.

Please remit retainer payments via wire to:

Name: Wells Fargo ABA No.: 121000248 Swift ID: WFBIUS6S Name on Account: CBRE Valuation Wire Receipts General Account No.: 4121248561 Address: 420 Montgomery Street San Francisco, CA 94104 Bank Contact: Michele Polcari Telephone Number: (310) 606-4792

Delivery Instructions: CBRE encourages our clients to join in our environmental sustainability efforts by accepting an electronic copy of the report.

An Adobe PDF file via email will be delivered to [email protected]. The client has requested 0 bound final copy (ies). Delivery Schedule: Preliminary Value: Not Required Draft Report: 10 business days after the Start Date Final Report: Upon Client's request Start Date: The appraisal process will start upon receipt of your signed agreement, the retainer, and the property specific data. Acceptance Date: These specifications are subject to modification if this proposal is not accepted within 5 business days from the date of this letter.

www.cbre.us/valuation

VALUATION & ADVISORY SERVICES Sushanth Charabuddi Assignment Agreement Page 3 of 8 May 12, 2021

Market Volatility: The outbreak of the Novel Coronavirus (COVID-19), declared by the World Health Organization as a global pandemic on the 11th March 2020, is causing heightened uncertainty in both local and global market conditions. Our valuation is based on the information available to us at the date of valuation. You acknowledge that our reports may include clauses highlighting heightened uncertainty if appropriate, and we recommend our valuation is kept under frequent review. Both governments and companies are initiating travel restrictions, quarantine and additional safety measures in response to the COVID-19 pandemic. If, at any point, our ability to deliver the services under this LOE are restricted due to the pandemic, we will inform you within a reasonable timeframe and work with you on how to proceed. Whilst we will endeavor to meet the required timeframe for delivery, you acknowledge any Government or company-imposed restrictions due to the virus may impede our ability to meet the timeframe and/or deliverables of this engagement, and delays may follow. Any delays or inability to deliver on this basis would not constitute a failure to meet the terms of this engagement. When executed and delivered by all parties, this letter, together with the Terms and Conditions and the Specific Property Data Request attached hereto and incorporated herein, will serve as the Agreement for appraisal services by and between CBRE and Client. Each person signing below represents that it is authorized to enter into this Agreement and to bind the respective parties hereto. We appreciate this opportunity to be of service to you on this assignment. If you have additional questions, please contact us. Sincerely,

CBRE, Inc. Valuation & Advisory Services

Benjamin Tedder, MAI VAS - Director As Agent for CBRE, Inc. T +1 704 3311273 [email protected]

www.cbre.us/valuation

VALUATION & ADVISORY SERVICES Sushanth Charabuddi Assignment Agreement Page 4 of 8 May 12, 2021

AGREED AND ACCEPTED

FOR EAGLE I PROPERTY GROUP (“CLIENT”):

Signature Date

Sushanth Charabuddi Co-Founder Name Title

617-933-7244 [email protected] Phone Number E-Mail Address

www.cbre.us/valuation

VALUATION & ADVISORY SERVICES Sushanth Charabuddi Assignment Agreement Page 5 of 8 May 12, 2021

TERMS AND CONDITIONS

1. The Terms and Conditions herein are part of an agreement for appraisal services (the “Agreement” ) between CBRE, Inc. (the “Appraiser”) and the client signing this Agreement, and for whom the appraisal services will be performed (the “Client”), and shall be deemed a part of such Agreement as though set forth in full therein. The Agreement shall be governed by the laws of the state where the appraisal office is located for the Appraiser executing this Agreement. 2. Client shall be responsible for the payment of all fees stipulated in the Agreement. Payment of the appraisal fee and preparation of an appraisal report (the “Appraisal Report, or the “report”) are not contingent upon any predetermined value or on an action or event resulting from the analyses, opinions, conclusions, or use of the Appraisal Report. Final payment is due as provided in the Proposal Specifications Section of this Agreement. If a draft report is requested, the fee is considered earned upon delivery of the draft report. It is understood that the Client may cancel this assignment in writing at any time prior to delivery of the completed report. In such event, the Client is obligated only for the prorated share of the fee based upon the work completed and expenses incurred (including travel expenses to and from the job site), with a minimum charge of $500. Additional copies of the Appraisal Reports are available at a cost of $250 per original color copy and $100 per photocopy (black and white), plus shipping fees of $30 per report. 3. If Appraiser is subpoenaed or ordered to give testimony, produce documents or information, or otherwise required or requested by Client or a third party to participate in meetings, phone calls, conferences, litigation or other legal proceedings (including preparation for such proceedings) because of, connected with or in any way pertaining to this engagement, the Appraisal Report, the Appraiser’s expertise, or the Property, Client shall pay Appraiser’s additional costs and expenses, including but not limited to Appraiser’s attorneys’ fees, and additional time incurred by Appraiser based on Appraiser’s then-prevailing hourly rates and related fees. Such charges include and pertain to, but are not limited to, time spent in preparing for and providing court room testimony, depositions, travel time, mileage and related travel expenses, waiting time, document review and production, and preparation time (excluding preparation of the Appraisal Report), meeting participation, and Appraiser’s other related commitment of time and expertise. Hourly charges and other fees for such participation will be provided upon request. In the event Client requests additional appraisal services beyond the scope and purpose stated in the Agreement, Client agrees to pay additional fees for such services and to reimburse related expenses, whether or not the completed report has been delivered to Client at the time of such request. 4. Appraiser shall have the right to terminate this Agreement at any time for cause effective immediately upon written notice to Client on the occurrence of fraud or the willful misconduct of Client, its employees or agents, or without cause upon 5 days written notice. 5. In the event Client fails to make payments when due then, from the date due until paid, the amount due and payable shall bear interest at the maximum rate permitted in the state where the office is located for the Appraiser executing the Agreement. In the event either party institutes legal action against the other to enforce its rights under this Agreement, the prevailing party shall be entitled to recover its reasonable attorney’s fees and expenses. Each party waives the right to a trial by jury in any action arising under this Agreement. 6. Appraiser assumes there are no major or significant items or issues affecting the Property that would require the expertise of a professional building contractor, engineer, or environmental consultant for Appraiser to prepare a valid report. Client acknowledges that such additional expertise is not covered in the Appraisal fee and agrees that, if such additional expertise is required, it shall be provided by others at the discretion and direction of the Client, and solely at Client’s additional cost and expense. 7. In the event of any dispute between Client and Appraiser relating to this Agreement, or Appraiser's or Client's performance hereunder, Appraiser and Client agree that such dispute shall be resolved by means of binding arbitration in accordance with the commercial arbitration rules of the American Arbitration Association, and judgment upon the award rendered by an arbitrator may be entered in any court of competent jurisdiction. Depositions may be taken and other discovery obtained during such arbitration proceedings to the same extent as authorized in civil judicial proceedings in the state where the office of the Appraiser executing this Agreement is located. The arbitrator shall be limited to awarding compensatory damages and shall have no authority to award punitive, exemplary or similar damages. The prevailing party in the arbitration proceeding shall be entitled to recover its expenses from the losing party, including costs of the arbitration proceeding, and reasonable attorney's fees. Client acknowledges that Appraiser is being retained hereunder as an independent contractor to perform the services described herein and nothing in this Agreement shall be deemed to create any other relationship between

VALUATION & ADVISORY SERVICES Sushanth Charabuddi Assignment Agreement Page 6 of 8 May 12, 2021

Client and Appraiser. This engagement shall be deemed concluded and the services hereunder completed upon delivery to Client of the Appraisal Report discussed herein. 8. All statements of fact in the report which are used as the basis of the Appraiser's analyses, opinions, and conclusions will be true and correct to Appraiser's actual knowledge and belief. Appraiser does not make any representation or warranty, express or implied, as to the accuracy or completeness of the information or the condition of the Property furnished to Appraiser by Client or others. TO THE FULLEST EXTENT PERMITTED BY LAW, APPRAISER DISCLAIMS ANY GUARANTEE OR WARRANTY AS TO THE OPINIONS AND CONCLUSIONS PRESENTED ORALLY OR IN ANY APPRAISAL REPORT, INCLUDING WITHOUT LIMITATION ANY WARRANTY OF FITNESS FOR ANY PARTICULAR PURPOSE EVEN IF KNOWN TO APPRAISER. Furthermore, the conclusions and any permitted reliance on and use of the Appraisal Report shall be subject to the assumptions, limitations, and qualifying statements contained in the report. 9. Appraiser shall have no responsibility for legal matters, including zoning, or questions of survey or title, soil or subsoil conditions, engineering, or other similar technical matters. The report will not constitute a survey of the Property analyzed. 10. Client shall provide Appraiser with such materials with respect to the assignment as are requested by Appraiser and in the possession or under the control of Client. Client shall provide Appraiser with sufficient access to the Property to be analyzed, and hereby grants permission for entry unless discussed in advance to the contrary. 11. The data gathered in the course of the assignment (except data furnished by Client) and the report prepared pursuant to the Agreement are, and will remain, the property of Appraiser. With respect to data provided by Client, Appraiser shall not violate the confidential nature of the Appraiser-Client relationship by improperly disclosing any proprietary information furnished to Appraiser. Notwithstanding the foregoing, Appraiser is authorized by Client to disclose all or any portion of the report and related data as may be required by statute, government regulation, legal process, or judicial decree, including to appropriate representatives of the Appraisal Institute if such disclosure is required to enable Appraiser to comply with the Bylaws and Regulations of such Institute as now or hereafter in effect. 12. Unless specifically noted, in preparing the Appraisal Report the Appraiser will not be considering the possible existence of asbestos, PCB transformers, or other toxic, hazardous, or contaminated substances and/or underground storage tanks (collectively, “Hazardous Material) on or affecting the Property, or the cost of encapsulation or removal thereof. Further, Client represents that there is no major or significant deferred maintenance of the Property that would require the expertise of a professional cost estimator or contractor. If such repairs are needed, the estimates are to be prepared by others, at Client’s discretion and direction, and are not covered as part of the Appraisal fee. 13. In the event Client intends to use the Appraisal Report in connection with a tax matter, Client acknowledges that Appraiser provides no warranty, representation or prediction as to the outcome of such tax matter. Client understands and acknowledges that any relevant taxing authority (whether the Internal Revenue Service or any other federal, state or local taxing authority) may disagree with or reject the Appraisal Report or otherwise disagree with Client’s tax position, and further understands and acknowledges that the taxing authority may seek to collect additional taxes, interest, penalties or fees from Client beyond what may be suggested by the Appraisal Report. Client agrees that Appraiser shall have no responsibility or liability to Client or any other party for any such taxes, interest, penalties or fees and that Client will not seek damages or other compensation from Appraiser relating to any such taxes, interest, penalties or fees imposed on Client, or for any attorneys’ fees, costs or other expenses relating to Client’s tax matters. 14. Appraiser shall have no liability with respect to any loss, damage, claim or expense incurred by or asserted against Client arising out of, based upon or resulting from Client’s failure to provide accurate or complete information or documentation pertaining to an assignment ordered under or in connection with this Agreement, including Client’s failure, or the failure of any of Client’s agents, to provide a complete copy of the Appraisal Report to any third party. 15. LIMITATION OF LIABILITY. EXCEPT TO THE EXTENT ARISING FROM SECTION 16 BELOW, OR SECTION 17 IF APPLICABLE, IN NO EVENT SHALL EITHER PARTY OR ANY OF ITS AFFILIATE, OFFICERS, DIRECTORS, EMPLOYEES, AGENTS, OR CONTRACTORS BE LIABLE TO THE OTHER, WHETHER BASED IN CONTRACT, WARRANTY, INDEMNITY, NEGLIGENCE, STRICT LIABILITY OR OTHER TORT OR OTHERWISE, FOR ANY SPECIAL, CONSEQUENTIAL, PUNITIVE, INCIDENTAL OR INDIRECT DAMAGES, AND AGGREGATE DAMAGES IN CONNECTION WITH THIS AGREEMENT FOR EITHER PARTY (EXCLUDING THE OBLIGATION TO PAY THE FEES REQUIRED HEREUNDER) SHALL NOT EXCEED THE GREATER OF THE TOTAL FEES PAYABLE TO APPRAISER UNDER THIS AGREEMENT OR TEN THOUSAND DOLLARS ($10,000). THIS LIABILITY LIMITATION SHALL NOT APPLY IN THE EVENT OF A FINAL FINDING BY AN ARBITRATOR OR A COURT OF COMPETENT JURISDICTION THAT SUCH LIABILITY IS THE RESULT OF A PARTY’S FRAUD OR WILLFUL MISCONDUCT.

VALUATION & ADVISORY SERVICES Sushanth Charabuddi Assignment Agreement Page 7 of 8 May 12, 2021

16. Client shall not disseminate, distribute, make available or otherwise provide any Appraisal Report prepared hereunder to any third party (including without limitation, incorporating or referencing the Appraisal Report , in whole or in part, in any offering or other material intended for review by other parties) except to (i) any third party expressly acknowledged in a signed writing by Appraiser as an “Intended User” of the Appraisal Report provided that either Appraiser has received an acceptable release from such third party with respect to such Appraisal Report or Client provides acceptable indemnity protections to Appraiser against any claims resulting from the distribution of the Appraisal Report to such third party, (ii) any third party service provider (including rating agencies and auditors) using the Appraisal Report in the course of providing services for the sole benefit of an Intended User, or (iii) as required by statute, government regulation, legal process, or judicial decree. In the event Appraiser consents, in writing, to Client incorporating or referencing the Appraisal Report in any offering or other materials intended for review by other parties, Client shall not distribute, file, or otherwise make such materials available to any such parties unless and until Client has provided Appraiser with complete copies of such materials and Appraiser has approved all such materials in writing. Client shall not modify any such materials once approved by Appraiser. In the absence of satisfying the conditions of this paragraph with respect to a party who is not designated as an Intended User, in no event shall the receipt of an Appraisal Report by such party extend any right to the party to use and rely on such report, and Appraiser shall have no liability for such unauthorized use and reliance on any Appraisal Report. In the event Client breaches the provisions of this paragraph, Client shall indemnify, defend and hold Appraiser, and its affiliates and their officers, directors, employees, contractors, agents and other representatives (Appraiser and each of the foregoing an “Indemnified Party” and collectively the “Indemnified Parties”), fully harmless from and against all losses, liabilities, damages and expenses (collectively, “Damages”) claimed against, sustained or incurred by any Indemnified Party arising out of or in connection with such breach, regardless of any negligence on the part of any Indemnified Party in preparing the Appraisal Report. 17. Furthermore, Client shall indemnify, defend and hold each of the Indemnified Parties harmless from and against any Damages in connection with (i) any transaction contemplated by this Agreement or in connection with the appraisal or the engagement of or performance of services by any Indemnified Party hereunder, (ii) any Damages claimed by any user or recipient of the Appraisal Report, whether or not an Intended User, (iii) any actual or alleged untrue statement of a material fact, or the actual or alleged failure to state a material fact necessary to make a statement not misleading in light of the circumstances under which it was made with respect to all information furnished to any Indemnified Party or made available to a prospective party to a transaction, or (iv) an actual or alleged violation of applicable law by an Intended User (including, without limitation, securities laws) or the negligent or intentional acts or omissions of an Intended User (including the failure to perform any duty imposed by law); and will reimburse each Indemnified Party for all reasonable fees and expenses (including fees and expenses of counsel) (collectively, “Expenses”) as incurred in connection with investigating, preparing, pursuing or defending any threatened or pending claim, action, proceeding or investigation (collectively, “Proceedings”) arising therefrom, and regardless of whether such Indemnified Party is a formal party to such Proceeding. Client agrees not to enter into any waiver, release or settlement of any Proceeding (whether or not any Indemnified Party is a formal party to such Proceeding) without the prior written consent of Appraiser (which consent will not be unreasonably withheld or delayed) unless such waiver, release or settlement includes an unconditional release of each Indemnified Party from all liability arising out of such Proceeding. 18. Time Period for Legal Action. Unless the time period is shorter under applicable law, except in connection with paragraphs 16 and 17 above, Appraiser and Client agree that any legal action or lawsuit by one party against the other party or its affiliates, officers, directors, employees, contractors, agents, or other representatives, whether based in contract, warranty, indemnity, negligence, strict liability or other tort or otherwise, relating to (a) this Agreement or the Appraisal Report, (b) any services or appraisals under this Agreement or (c) any acts or conduct relating to such services or appraisals, shall be filed within two (2) years from the date of delivery to Client of the Appraisal Report to which the claims or causes of action in the legal action or lawsuit relate. The time period stated in this section shall not be extended by any incapacity of a party or any delay in the discovery or accrual of the underlying claims, causes of action or damages.

VALUATION & ADVISORY SERVICES Sushanth Charabuddi Assignment Agreement Page 8 of 8 May 12, 2021

SPECIFIC PROPERTY DATA REQUEST

In order to complete this assignment under the terms outlined, CBRE, Inc., Valuation & Advisory Services, will require the following specific information for the property:

1. PLEASE NOTIFY US IMMEDIATELY IF ANY OTHER CBRE SERVICE LINE (INCLUDING CAPSTONE) IS INVOLVED IN THE BROKERAGE, FINANCING, INVESTMENT OR MANAGEMENT OF THIS ASSET. 2. Current title report and title holder name 3. Legal description 4. Survey and/or plat map 5. Site plan for proposed or entitled development 6. Current county property tax assessment or tax bill 7. Details on any sale, contract, or listing of the property within the past three years 8. Engineering studies, soil tests or environmental assessments 9. Building plans and specifications, including square footage for all buildings and units 10. Ground lease, if applicable 11. Details regarding any planned rental concessions to be included in the initial lease-up of the project 12. Details regarding all personal property, including furniture, fixtures, and equipment 13. Details regarding the development costs, including land costs 14. Pro forma income and expense projections 15. Budgeted occupancy report 16. Details regarding construction timeline 17. Marketing plan, absorption projections and/or local competitive study 18. Any previous market/demand studies or appraisals 19. Name and telephone number of property contact for physical inspection and additional information needed during the appraisal process 20. Any other information that might be helpful in valuing this property

If any of the requested data and information is not available, CBRE, Inc., reserves the right to extend the delivery date by the amount of time it takes to receive the requested information or make other arrangements. Please have the requested information delivered to the following:

Benjamin Tedder, MAI VAS - Director [email protected] CBRE, Inc. Valuation & Advisory Services 201 S. College Street, Ste 1700 Charlotte, NC 28244

www.cbre.us/valuation

Addendum G QUALIFICATIONS

̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶ Experience ̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶

Andrew Loepprich joined CBRE Valuation & Advisory Services in August 2018 after graduating from Wake Forest University with a Bachelor of Science in Finance. Andrew received his State of North Carolina Trainee Real Estate Appraiser License on July 3, 2019. Andrew’s current supervisor as he works towards his Certified General Real Estate Appraiser License for the State of North Carolina is Benjamin Tedder, MAI. Mr. Tedder has experience in providing appraisals, consultations, and feasibility studies ranging from smaller properties valued under $1 million in rural markets to institutional quality assets valued in excess of $100 million in primary markets throughout the southeast ̶̶̶̶̶̶ Professional Affiliations / Accreditations ̶̶̶̶̶̶

• Trainee Real Estate Appraiser, North Carolina – T6243 ̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶ Education ̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶

• Wake Forest University T+704.264.3648 M+704.936.8181 Bachelor of Science in Finance [email protected] • Appraisal Trainee Courses 201 S College Street, Suite 1700 Basic Appraisal Principles Charlotte, NC 28244 Basic Appraisal Procedures National USPAP Market Analysis & Highest & Best Use Property • Appraisal Pre-Licensing Courses General Report Writing & Case Studies Experience General Appraiser Sales Comparison Approach

• Multi-Family Garden • Employment Experience • Multi-Family Mid-Rise • Multi-Family High-Rise • Multi-Family Student August 2018 - Present CBRE, Valuation and Advisory Services • Multi-Family Loft • General Industrial • Flex Industrial • General Retail

̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶ Experience ̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶

Benjamin Tedder, MAI joined CBRE Valuation & Advisory Services in 2002. Since joining CBRE, he has completed appraisal reports covering all major commercial property classes, including multifamily, retail, industrial, office, subdivisions and a variety of special purpose properties. Mr. Tedder has experience in providing appraisals, consultations, and feasibility studies ranging from smaller properties valued under $1 million in rural markets to institutional quality assets valued in excess of $100 million in primary markets throughout the southeast.

Mr. Tedder is a top producer regionally and consistently in the top 5% nationally for CBRE Valuation & Advisory Services. ̶̶̶̶̶̶ Professional Affiliations / Accreditations ̶̶̶̶̶̶

• Appraisal Institute, Designated Member (MAI) • Certified General Real Estate Appraiser, North Carolina – A6351 • Certified General Real Estate Appraiser, South Carolina – CG6199 T + 704 331 1273 M +704 577 2014 • Certified General Real Estate Appraiser, Georgia – CG335679 [email protected] www.cbre.com/ben.tedder ̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶ Education ̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶

201 S College Street, St 1700 Charlotte, NC 28244 • Appalachian State University ̶ Bachelor of Science in Finance and Real Estate Clients • Appraisal Institute Courses/Seminars: Represented ̶ 110, 120, 210, 310, 410, 420, 510, 520, 530, 540, 550 ̶ Evaluating Commercial Construction ̶ Green Buildings: Principles & Concepts • Financial Institutions • Developers • Insurance Companies • REITS • Individual and Corporate Property Owners

20 BENJAMIN DANIEL TEDDER 21 A6351 G Y

Max Donald Poore, MAI Managing Director

CBRE, Inc. – Valuation & Advisory Services 201 S. College Street, Suite 1700 Charlotte, NC 20244 704.331.1214 [email protected]

EDUCATIONAL

B.A. Wake Forest University, Winston Salem, North Carolina M.S. in Real Estate, Georgia State University, Atlanta, Georgia

CERTIFICATION

Certified Real Estate Appraiser: State of Georgia - Certificate Number CG001683 Certified Real Estate Appraiser: State of Tennessee - Certificate Number 00001348 Certified Real Estate Appraiser: State of South Carolina - Certificate Number 4993 Certified Real Estate Appraiser: State of North Carolina - Certificate Number A1084 Certified Real Estate Appraiser: State of Kentucky - Certificate Number 003429 Certified Real Estate Appraiser: State of Alabama - Certificate Number G00693 Real Estate Broker State of North Carolina - 59070 Real Estate Broker State of Georgia - 250193

PROFESSIONAL

Appraisal Institute

Designated Member - Appraisal Institute (MAI), Certificate No. 7969

EMPLOYMENT EXPERIENCE

1984-1989 Shiplett - Wilkins & Associates Charlotte, North Carolina Appraiser 1989-1999 Arthur Andersen, LLP. Atlanta, Georgia Senior Real Estate Manager 1999-2004 Andrews Street Realty Atlanta, Georgia Real Estate Consultant 2004-Present CBRE, Inc. Charlotte, North Carolina Managing Director

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