Offering Memorandum

WATERFORD MANOR 4015 Covington Hwy • Decatur, GA 30032

3 NON - ENDORSEMENT AND DISCLAIMER NOTICE

Confidentiality and Disclaimer The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB's or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant's plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Marcus & Millichap. All rights reserved.

Non-Endorsement Notice Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation's logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

WATERFORD MANOR Decatur, GA ACT ID Y0230245 WATERFORD MANOR

TABLE OF CONTENTS

SECTION

INVESTMENT OVERVIEW 01

FINANCIAL ANALYSIS 02

MARKET COMPARABLES 03-05 Sales Comparables

On Market Comparables

Rent Comparables

MARKET OVERVIEW 06 Market Analysis Demographic Analysis WATERFORD MANOR

INVESTMENT OVERVIEW

6 7 WATERFORD MANOR

OFFERING SUMMARY EXECUTIVE SUMMARY

VITAL DATA Price $5,900,000 T-12 MONTH CURRENT PROFORMA - YEAR1 Down Payment 30% / $1,770,000 CAP Rate 7.09% 9.89% MAJOR EMPLOYERS Loan Amount $4,130,000 GRM 6.81 5.92 Net Operating Loan Type Proposed New $418,311 $583,283 Income EMPLOYER # OF EMPLOYEES Net Cash Flow Interest Rate / Amortization 5.00% / 30 Years 8.69% / $153,814 17.42% / $308,286 Dekalb Regional Health Sys Inc 2,627 After Debt Service Price/Unit $50,000 Total Return 12.16% / $215,312 21.07% / $372,897 Dekalb Medical 2,212 Price/SF $50.16 Board of Commissioners 1,500 Number of Units 118 Nrd Holdings LLC 1,200 Rentable Square Feet 117,620 Georgia Regional Hospital 1,069 Year Built / Renovated 1963 / 2016 Promina Health System Inc 1,000 Walmart 983 Georgia Perimeter College 939 Labor Staffing Inc 800 UNIT MIX Clarke American Checks Inc 750 NUMBER APPROX. UNIT TYPE Huddle House 750 OF UNITS SQUARE FEET Dekalb Community Service Board 700 118 2 Bedroom 997

DEMOGRAPHICS

118 Total 117,620

1-Miles 3-Miles 5-Miles 2016 Estimate Pop 10,504 93,744 270,932 2010 Census Pop 9,946 89,040 256,358 2016 Estimate HH 4,095 34,653 103,795 2010 Census HH 3,918 33,037 98,775 Median HH Income $38,393 $41,566 $44,369 Per Capita Income $18,313 $21,438 $24,302 Average HH Income $46,961 $56,715 $62,839

#8 WATERFORD MANOR

OFFERING SUMMARY INVESTMENT OVERVIEW

PROPERTY OVERVIEW Marcus & Millichap is pleased to present for sale the Waterford Manor Apartments located at 4015 Covington Highway, Decatur, GA 30032. Built in 1963, the property is a 118-unit, two-story garden-style/townhome-style apartment complex that comprises 80 2 bedroom/1 bath garden-style units measured at 943 SF each and 38 2 bedroom/1.5 bath townhome units measured at 1,110 SF each. Total rentable square footage for the property is 117,620 SF across 20 buildings . Each unit features a washer/dryer hookup, central heating and air conditioning (some units have windows air conditioners), ceiling fans, and complete kitchen appliances including a trash disposal and dishwasher. About 100 units have received significant capital improvements in the form of new windows, doors, toilets and more in 2016. Improvements are still ongoing.

MARKET OVERVIEW Decatur is a city in, and county seat of, DeKalb County, Georgia, United States.Decatur is an in-town suburb of Atlanta and part of the Atlanta metropolitan area, and its public transportation is served by three MARTA rail stations (East Lake Train Station, Decatur Train Station, and Avondale Train Station). Decatur is accessible from I-20 and I-285 as well as famed East Atlanta major thoroughfares: Clairmont Avenue, Ponce de Leon Avenue, Memorial Drive and Candler Road.

The vibrant City of Decatur is located approximately 7.5 miles east of downtown Atlanta where residents have access to Atlanta's major business districts (Downtown, Midtown, Buckhead and Dunwoody/Sandy Springs), entertainment and nightlife, medical services (Grady Hospital and Emory University Hospital Midtown), renowned educational institutions (Emory University, Georgia Tech, and Georgia State University) and other services. Points of interest within Decatur include: - Historic Decatur Square - Historic Decatur Cemetery - Belvedere Park - Emory University and Agnes Scott College - Centers for Disease Control and Prevention - New Mixed-Used Development at Avondale Train Station - North DeKalb Mall

To local natives, Decatur is considered a part of "trendy East Atlanta" where destinations such as Little Five Points, East Atlanta Village, Inman Park, Poncey-Highlands, Freedom Parkway, and Old Fourth Ward offer a variety of entertainment, retail services, green space and brunch eateries/restaurants for residents of Atlanta.

Located off Highway 278 NE/Covington Highway (2015 ADTC - 30,000+ Vehicles per Day), residents of Waterford Manor Apartments enjoy easy access to-and-from Interstate 285 which is less than 0.5 miles away. Across the street from the property are Covington Place Shopping Center and Pendley Hill Plaza Shopping Center. Located approximately two (2) miles northeast of the property is the intersection of Memorial Drive and South Columbia Drive that features more retail and includes a Kroger-anchored shopping center and a Walmart Supercenter across from there.

Hartsfield-Jackson Atlanta International Airport is located approximately 16 miles southwest from Waterford Manor Apartments if traveling via Interstate 285.

#9 WATERFORD MANOR

OFFERING SUMMARY

INVESTMENT HIGHLIGHTS

. Priced at $5,900,000 or $50,000 per Unit . Stabilized Asset with Generous Cash Flows - 92% Physical Occupancy

. Strong 5-Mile Radius Demographics: 274,350 People & $62,839 AHHI . Strong Renters Market: Occupying 46.6% of Available Non-Vacant Units . Tremendous Upside Potential - Focus on Minor Upgrades to Increase Rents to Market

10# WATERFORD MANOR

OFFERING SUMMARY PROPERTY SUMMARY

THE OFFERING EXISTING FINANCING Property Waterford Manor Loan Amount $2,480,000 Price $5,900,000 Loan Type Conventional Property Address 4015 Covington Hwy,Decatur,GA Interest Rate 5.00% Assessors Parcel Number 15-0220-02-064 Amortization 30 Zoning RM75 Original Term 30 SITE DESCRIPTION Due Date 12/1/2045 Number of Units 118 Current Monthly Payment ($13,313) Number of Buildings 20 Prepayment Penalty $0 Number of Stories 2 Lender Name CBRE Capital Markets, Inc. Year Built/Renovated 1963/2016 Rentable Square Feet 117,620 PROPOSED FINANCING Lot Size 8.60 Acres First Trust Deed Type of Ownership Fee Simple Loan Amount $4,130,000 Density 0.31 Loan Type Proposed New Parking 200 Spaces Interest Rate 5.00% Parking Ratio 1.7 Amortization 30 Years Landscaping Professionally Managed Loan Term 10 Years Topography Mostly Flat Loan to Value 70% CONSTRUCTION Debt Coverage Ratio 1.77 Foundation Poured Concrete Framing Wood Exterior Brick and/or Stone Parking Surface Asphalt Roof Pitched Asphalt Shingles MECHANICAL HVAC Central Air and Heating/Window Units Wiring Copper Fire Protection Yes

11# WATERFORD MANOR

REGIONAL MAP

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LOCAL MAP

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AERIAL PHOTO

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INTERIOR PHOTOS

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FINANCIAL ANALYSIS

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FINANCIAL ANALYSIS RENT ROLL SUMMARY

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FINANCIAL ANALYSIS OPERATING STATEMENT

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FINANCIAL ANALYSIS NOTES

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FINANCIAL ANALYSIS PRICING DETAIL

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FINANCIAL ANALYSIS GROWTH RATE PROJECTIONS

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FINANCIAL ANALYSIS CASH FLOW

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ACQUISITION FINANCING

MARCUS & MILLICHAP CAPITAL CORPORATION WHY MMCC?

CAPABILITIES Optimum financing solutions to enhance value MMCC—our fully integrated, dedicated financing arm—is committed to providing superior capital market expertise, precisely managed execution, and unparalleled access to capital sources providing the most competitive rates and Our ability to enhance terms. buyer pool by expanding finance options We leverage our prominent capital market relationships with commercial banks, life insurance companies, CMBS, private and public debt/equity funds, Fannie Mae, Freddie Mac and HUD to provide our clients with the greatest range of Our ability to enhance financing options. seller control • Through buyer Our dedicated, knowledgeable experts understand the challenges of financing qualification support and work tirelessly to resolve all potential issues to the benefit of our clients. • Our ability to manage buyers finance expectations • Ability to monitor and manage buyer/lender progress, insuring timely, predictable closings • By relying on a world class Closed 1,651 National platform $5.1 billion Access to set of debt/equity sources debt and equity operating total national more capital financings within the firm’s volume in 2016 sources than and presenting a tightly in 2016 brokerage any other firm underwritten credit file offices in the industry

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SALES COMPARABLES

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8 SALES COMPARABLES MAP

WATERFORD MANOR (SUBJECT)

1 The Ashberry

2 The Parke On Covington

3 Friendly Hills

4 Hillsides

5 Langley Place Apartments Creekside Forrest 6 Apartments

SALES COMPARABLES

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COMPARABLES SALES COMPARABLES SALES COMPS AVG

Average Price Per Square Foot Average Price Per Unit

$67.00 $70,000

$60.30 $63,000

$53.60 $56,000

$46.90 $49,000

$40.20 $42,000 Avg. $35.20 Avg. $35,981

$33.50 $35,000

$26.80 $28,000

$20.10 $21,000

$13.40 $14,000

$6.70 $7,000

$0.00 $0 Waterford The The Friendly Hillsides Langley Creekside Waterford The The Friendly Hillsides Langley Creekside Manor Ashberry Parke On Hills Place Forrest Manor Ashberry Parke On Hills Place Forrest Covington Apartments Apartments Covington Apartments Apartments

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MARKETINGCOMPARABLES TEAM

SALES COMPARABLES

THE ASHBERRY THE PARKE ON COVINGTON 673WATERFORD VISTA ISLE MANOR DRIVE 3760 FLAT SHOALS PKY, DECATUR, GA, TEXT3 3975 COVINGTON HWY, DECATUR, GA, 30032 4015673 COVINGTONVISTA ISLE DRIVE, HWY, SUNRISE,DECATUR, FL, GA, 33325 30032 1 2

rentpropertyname1 rentpropertyname1 rentpropertyname1

Units Unit Type Units Unit Type Units Unit Type Offering Price: $5,900,000 118 2 Bdr Close Of Escrow: 9/12/2016 39 1 Bdr Bath Close Of Escrow: 11/10/2016 40 1 Bdr Bath Price/Unit: $50,000 Sales Price: $3,217,500 59 2 Bdr Bath Sales Price: $3,300,000 52 2 Bdr Bath Price/SF: $50.16 Price/Unit: $27,500 19 3 Bdr 2.5 Bath Price/Unit: $23,404 37 2 Bdr 1.5 Bath Total No. of Units: 118 Price/SF: $22.26 Price/SF: $26.99 12 3 Bdr 1.5 Bath Year Built: 1963 Total No. of Units: 117 Total No. of Units: 141 Year Built: 1971 Year Built: 1962

rentpropertyaddress1 rentpropertyaddress1 rentpropertyaddress1 Underwriting Criteria Underwriting Criteria Underwriting Criteria Income $902,264 Expenses $432,687 Expenses $38,291 Expenses $15,903 NOI $469,578 Vacancy ($115,400)

NOTES NOTES On September 12th, 2016, the 144,550 sf multifamily property at 3760 Flat Property Description: 142-UNIT APARTMENT COMPLEX The Parke on Shoals Parkway, Decatur, GA 30034 was sold. The property, which Covington located at 3975 Covington Hwy in Decatur, GA sold on consists of 117 units was sold as an investment for $3,217,500, or November 9th, 2016. New Realty, LLC sold the 141 unit apartment for $27,500 per unit. The buyer secured $2,413,000 in financing for this $3,300,000 or $23,404 per unit to Ariam Partners who focuses on acquisition. The information in this sale comparable was verified with the acquiring distressed multi-family buildings.Four of the units were burned public record. Neither the buyer or seller could be reached for comment. down and at the time of the sale the property was 50% occupied.

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MARKETINGCOMPARABLES TEAM

SALES COMPARABLES

FRIENDLY HILLS HILLSIDES LANGLEY PLACE APARTMENTS 10 FRIENDLY HILLS DR, DECATUR, GA, 30035 4801 SNAPFINGER WOODS DR, DECATUR, GA, 30035 3801 KENSINGTON CT, DECATUR, GA, 30032 3 4 5

rentpropertyname1 rentpropertyname1

Units Unit Type Units Unit Type Units Unit Type Close Of Escrow: 9/27/2016 12 1 Bdr Bath Close Of Escrow: 1/8/2016 28 1 Bdr 1 Bath Close Of Escrow: 11/9/2016 54 1 Bdr Bath Sales Price: $11,400,000 84 2 Bdr Bath Sales Price: $5,000,000 17 2 Bdr 1 Bath Days On Market: 104 63 2 Bdr Bath Price/Unit: $67,857 72 3 Bdr Bath Price/Unit: $33,113 46 2 Bdr 1.5 Bath Sales Price: $5,800,000 Price/SF: $61.26 Price/SF: $21.72 47 3 Bdr 2.5 Bath Price/Unit: $49,573 Total No. of Units: 168 Total No. of Units: 151 1 4 Bdr 3 Bath Price/SF: $65.10 Year Built: 1998 Year Built: 1971 12 4 Bdr 3.5 Bath Total No. of Units: 117 Year Built: 1973

rentpropertyaddress1 rentpropertyaddress1 rentpropertyaddress1 Underwriting Criteria Underwriting Criteria Underwriting Criteria Expenses $123,704 Expenses $70,351 NOI $569,156 Expenses $54,772 Vacancy $5

NOTES NOTES NOTES On September 27, 2016 AM Hayden Properties completed the sale of On January 8th, 2016, the 230,157 square foot multi-family building at On 11/9/2016, the Langley place Apartments located in Decatur, GA, sold Friendly Mills for the deed recorded value of $11,400,000. This is a 168- 4801 Snapfinger Woods Drive in Decatur, Georgia sold for $5,000,000 or for $5,800,000 or approximately $49,500 per unit. The apartment unit multifamily property located at 10 Friendly Hills Drive in Decatur, $33,113 per unit. This was an investment transaction as the building was complex was constructed in 1973 and sits on 7.4 acres of land. The Georgia. According to DeKalb County public record, the buyer financed 95.35 percent occupied at the time of the sale. It could not be confirmed property features a Grill and picnic area, laundry facilities, pool and the acquisition with a $8.55 million mortgage loan from Berkadia how long the property was on the market or what the cap rate was. playground. The property was listed earlier this year at $6,000,000. Commercial Mortgage. The escrow period is unknown.

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MARKETINGCOMPARABLES TEAM

SALES COMPARABLES

CREEKSIDE FORREST APARTMENTS 3000 EMBER DR, DECATUR, GA, 30034 6

rentpropertyname1 rentpropertyname1 rentpropertyname1

Units Unit Type Close Of Escrow: 2/27/2017 56 1 Bdr Bath Sales Price: $4,000,000 83 2 Bdr Bath Price/Unit: $14,440 68 2 Bdr Bath Price/SF: $13.85 70 3 Bdr Bath Total No. of Units: 277 Year Built: 1972

rentpropertyaddress1 rentpropertyaddress1 rentpropertyaddress1

NOTES There was a fire that destroys 20 of the units on property. As of September 2013 there are no immediate plans to renovate or demolish the damaged units.

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MARKET COMPARABLES

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8 SALES COMPARABLES MAP

WATERFORD MANOR (SUBJECT)

1 Covington Glen

2 Spring Valley

ON MARKET COMPARABLES

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ON MARKETMARKETING COMPARABLES TEAM

ON MARKET COMPARABLES

COVINGTON GLEN SPRING VALLEY 673WATERFORD VISTA ISLE MANOR DRIVE 5816 COVINGTON HWY, DECATUR, GA, 30035 2823 MISTY WATERS DR, DECATUR, GA, 30032 4015673 COVINGTONVISTA ISLE DRIVE, HWY, SUNRISE,DECATUR, FL, GA, 33325 30032 1 2

rentpropertyname1 rentpropertyname1 rentpropertyname1

Units Unit Type Units Unit Type Units Unit Type Offering Price: $5,900,000 118 2 Bdr Price/Unit: Undisclosed 162 1 Bdr 1 Bath Days On Market: 96 127 1 Bdr 1 Bath Price/Unit: $50,000 Days On Market: 96 92 2 Bdr Various Baths Total No. of Units: 250 113 2 Bdr 1.5 Bath Price/SF: $50.16 Total No. of Units: 254 Year Built: 1970 10 3 Bdr 2 Bath Total No. of Units: 118 Year Built: 1989 Year Built: 1963

rentpropertyaddress1 rentpropertyaddress1 rentpropertyaddress1 Underwriting Criteria Income $902,264 Expenses $432,687 NOI $469,578 Vacancy ($115,400)

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RENT COMPARABLES

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8 RENT COMPARABLES MAP

WATERFORD MANOR (SUBJECT)

1 Langley Place Apartments

2 Ridge Stone Townhomes

3 38FiftyNine

4 Ridgewood Apartments

5 Redan Cove

6 Avery Glen

7 Valleyfield Apartments

8

9

10

11

12

13

14

15

16

17

18

20

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RENT COMPARABLES AVERAGE OCCUPANCY

Avg. 98.16% 100

90

80

70

60

50

40

30

20

10

0 Waterford Langley Ridge Stone 38FiftyNine Ridgewood Redan Cove Avery Glen Valleyfield Manor Place Townhomes Apartments Apartments Apartments

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RENT COMPARABLES AVERAGE RENT - MULTIFAMILY

1 Bedroom 2 Bedroom

$900 $2,000

$810 $1,800

$720 Avg. $663 $1,600

$630 $1,400

$540 $1,200

$450 $1,000 Avg. $767 $360 $800

$270 $600

$180 $400

$90 $200

$0 $0 Langley 38FiftyNine Ridgewood Redan Cove Avery Glen Valleyfield Waterford Langley Ridge Stone 38FiftyNine Ridgewood Redan Cove Avery Glen Valleyfield Place Apartments Apartments Manor Place Townhomes Apartments Apartments Apartments Apartments

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RENTMARKETING COMPARABLES TEAM

LANGLEY PLACE APARTMENTS RIDGE STONE TOWNHOMES WATERFORD MANOR 3801 KENSINGTON CT, DECATUR, GA, 30032 1055 HOLCOMBE RD, DECATUR, GA, 30032 4015 COVINGTON HWY, DECATUR, GA, 30032 1 2

WATERFORD MANOR WATERFORD MANOR WATERFORD MANOR

Unit Type Units SF Rent Rent/SF Unit Type Units SF Rent Rent/SF Unit Type Units SF Rent Rent/SF 2 Bdr 118 997 $613 $0.61 1 Bdr 54 600 $628 $1.05 2 Bdr 72 1,200 $711 $0.59 Total/Avg. 118 997 $613 $0.61 2 Bdr 63 900 $726 $0.81 3 Bdr 50 1,450 $786 $0.54 Total/Avg. 117 762 $681 $0.89 Total/Avg. 122 1,302 $742 $0.57

YEAR BUILT: 1963 OCCUPANCY: 99% | YEAR BUILT: 1973 OCCUPANCY: 97% | YEAR BUILT: 1970 NOTES NOTES Air Conditioning, Cable Ready, Carpet, Ceiling Fans, Double Vanities, Eat- Air Conditioning, Cable Ready, Courtyard, Dining Room, Dishwasher, 4015 COVINGTON HWY, DECATUR, GA, 30032 in Kitchen,4015 Grill,COVINGTONHeating, Kitchen, HWY,Laundry DECATUR,Facilities, GA,Pet Play 30032Area, Picnic Gated,4015Hardwood COVINGTONFloors, Kitchen, HWY,Laundry DECATUR,Facilities, Oven,GA, 30032Patio, Planned Area, Playground, Pool, Property Manager on Site, Range, Refrigerator, Social Activities, Playground, Pool, Property Manager on Site, Range, Washer/Dryer Hookup Concessions: 0.3 Amenities: Air Conditioning, Refrigerator, Tub/Shower ... Concessions: 0.5 Amenities: Air Cable Ready, Carpet, Ceiling Fans, Double Vanities, Eat-in Kitchen, Grill, Conditioning, Cable Ready, Courtyard, Dining Room, Dishwasher, Gated, Heating, Kitchen, Laundry Facilities, Pet Play Area, Picnic Area, Hardwood Floors, Kitchen, Laundry Facilities, Oven, Patio, Planned Social Playground, Pool, Property Manager on Site, Range, Refrigerator, Activities, Playground, Pool, Property Manager on Site, Range, Washer/Dryer Hookup Refrigerator, Tub/Shower

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RENTMARKETING COMPARABLES TEAM

38FIFTYNINE RIDGEWOOD APARTMENTS REDAN COVE 3859 AUSTIN CIR, DECATUR, GA, 30032 3863 MEMORIAL DR, DECATUR, GA, 30032 3737 REDAN RD, DECATUR, GA, 30032 3 4 5

38FIFTYNINE 38FIFTYNINE 38FIFTYNINE

Unit Type Units SF Rent Rent/SF Unit Type Units SF Rent Rent/SF Unit Type Units SF Rent Rent/SF 1 Bdr 34 740 $601 $0.81 1 Bdr 97 567 $690 $1.22 1 Bdr 24 576 $525 $0.91 2 Bdr 50 1,066 $697 $0.65 2 Bdr 18 874 $847 $0.97 2 Bdr 100 864 $590 $0.68 3 Bdr 34 1,439 $800 $0.56 Total/Avg. 115 615 $715 $1.16 Total/Avg. 124 808 $577 $0.71 Total/Avg. 118 1,080 $699 $0.65

OCCUPANCY: 97% | YEAR BUILT: 1972 OCCUPANCY: 99% | YEAR BUILT: 1985 OCCUPANCY: 97% | YEAR BUILT: 1988 NOTES NOTES NOTES Air Conditioning, Cable Ready, Disposal, Freezer, Heating, Kitchen, 24 Hour Availability, Air Conditioning, Balcony, Ceiling Fans, Dishwasher, Air Conditioning, Balcony, Cable Ready, Carpet, Ceiling Fans, Kitchen, Laundry Facilities,3859 AUSTINMaintenance CIR,on DECATUR,site, Oven, Pool, GA,Property 30032Manager on Eat-in Kitchen,3859 AUSTINHeating, High CIR,Speed DECATUR,Internet Access,GA, 30032Kitchen, Laundry Laundry Facilities,3859 AUSTINLawn, Porch, CIR,Range, DECATUR,Refrigerator, GA,Views, 30032Washer/Dryer Site, Range, Refrigerator, Tub/Shower, Washer/Dryer Hookup, Wheelchair Facilities, Property Manager on Site, Storage Space, Storage Units, Hookup Concessions: 2.5 Amenities: Air Conditioning, Balcony, Cable Accessible (Rooms) Concessions: 0.6 Amenities: Air Conditioning, Cable Tub/Shower, Vaulted Ceiling ... Concessions: 0.3 Amenities: 24 Hour Ready, Carpet, Ceiling Fans, Kitchen, Laundry Facilities, Lawn, Porch, Ready, Disposal, Freezer, Heating, Kitchen, Laundry Facilities, Availability, Air Conditioning, Balcony, Ceiling Fans, Dishwasher, Eat-in Range, Refrigerator, Views, Washer/Dryer Hookup Maintenance on site, Oven, Pool, Property Manager on Site, Range, Kitchen, Heating, High Speed Internet Access, Kitchen, Laundry Facilities, Refrigerator, Tub/Shower, Washer/Dryer Hookup, Wheelchair Accessible Property Manager on Site, Storage Space, Storage Units, Tub/Shower, (Rooms) Vaulted Ceiling

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RENTMARKETING COMPARABLES TEAM

AVERY GLEN VALLEYFIELD APARTMENTS 339 E COLLEGE AVE, DECATUR, GA, 30030 5421 COVINGTON HWY, DECATUR, GA, 30035 6 7

AVERY GLEN AVERY GLEN AVERY GLEN

Unit Type Units SF Rent Rent/SF Unit Type Units SF Rent Rent/SF 1 Bdr 50 798 $895 $1.12 1 Bdr 104 576 $639 $1.11 2 Bdr 68 1,130 $1,047 $0.93 2 Bdr 28 864 $752 $0.87 Total/Avg. 118 989 $983 $0.99 Total/Avg. 132 637 $663 $1.04

OCCUPANCY: 100% | YEAR BUILT: 1993 OCCUPANCY: 99% | YEAR BUILT: 1984 NOTES NOTES Air Conditioning, Alarm, Balcony, Disposal, High Speed Internet Access, Balcony, Carpet, Ceiling Fans, Dishwasher, Fitness Programs, Gameroom, Ice Maker,339Maintenance E COLLEGEon site, AVE,Microwave, DECATUR,Pool, GA,Property 30030Manager on Ice Maker,339 EKitchen, COLLEGELaundry AVE,Facilities, DECATUR,Property GA,Manager 30030 on Site, 339 E COLLEGE AVE, DECATUR, GA, 30030 Site, Refrigerator, Security System, Views, Walk-In Closets, Washer/Dryer Refrigerator, Storage Units, Tub/Shower, Vaulted Ceiling, Washer/Dryer Hookup Concessions: 0.3 Amenities: Air Conditioning, Alarm, Balcony, Hookup Concessions: 0.3 Amenities: Balcony, Carpet, Ceiling Fans, Disposal, High Speed Internet Access, Ice Maker, Maintenance on site, Dishwasher, Fitness Programs, Gameroom, Ice Maker, Kitchen, Laundry Microwave, Pool, Property Manager on Site, Refrigerator, Security System, Facilities, Property Manager on Site, Refrigerator, Storage Units, Views, Walk-In Closets, Washer/Dryer Hookup Tub/Shower, Vaulted Ceiling, Washer/Dryer Hookup

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MARKET OVERVIEW

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MARKET OVERVIEW ATLANTA OVERVIEW

The Atlanta metro encompasses 29 counties in northwestern Georgia. With few natural barriers to limit development, tremendous population growth over the past decade expanded the metro’s borders and the region now has a population of roughly 5.7 million people. Over the next five years the region is expected to add nearly 500,000 residents. Meanwhile, new redevelopment projects in the downtown and midtown sections of Atlanta present a vast array of housing, entertainment and retail opportunities that are enticing residents back into the city and providing options for people moving to the metro.

METRO HIGHLIGHTS

HEAVY CONCENTRATION OF CORPORATE HEADQUARTERS Atlanta ran ranks fifth in the nation in the number of Fortune 500 headquarters with 17 companies, including UPS, Delta Airlines and Coca-Cola.

STRONG EMPLOYMENT GAINS The metro ranks among the highest in the nation for job growth. Nearly 400,000 jobs were added in the last four years.

LOW COST OF LIVING AND DOING BUSINESS ATTRACTS EMPLOYERS A pro-business environment and affordability helped Atlanta rise to second in the nation in job creation last year.

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MARKET OVERVIEW

ECONOMY . Gross metropolitan product (GMP) and retail sales progress above national levels. . The area serves as a financial hub for the Southeast. The Federal Reserve Bank of Atlanta and SunTrust Bank are housed locally. . Many companies favor Atlanta for low corporate taxes, its pro-business climate and access to national and global markets. Among the many corporate headquarters are Home Depot, Aflac and Turner Broadcast Co. Other major firms include NCR, Mercedes Benz, Porsche and State Farm.

MAJOR AREA EMPLOYERS

Delta Airlines The Home Depot AT&T WellStar Health Systems UPS Northside Hospital Piedmont Healthcare Children’s Healthcare of Atlanta Cox Enterprises * Forecast Bank of America

SHARE OF 2016 TOTAL EMPLOYMENT

6% 19% 12% 11% 6% MANUFACTURING PROFESSIONAL AND GOVERNMENT LEISURE AND HOSPITALITY FINANCIAL ACTIVITIES BUSINESS SERVICES

22% 4% + 12% 3% 4% TRADE, TRANSPORTATION CONSTRUCTION EDUCATION AND INFORMATION OTHER SERVICES AND UTILITIES HEALTH SERVICES

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MARKET OVERVIEW

DEMOGRAPHICS

. The local population is projected to exceed 6.2 million people during the next five years, after adding roughly 500,000 residents. SPORTS . Nearly 200,000 households will be created by 2021, generating the need for additional housing options. . A skilled workforce includes nearly 35 percent of residents age 25 and older with a bachelor’s degree, above the national level.

2016 Population by Age

7% 21% 7% 29% 26% 11% 0-4 YEARS 5-19 YEARS 20-24 YEARS 25-44 YEARS 45-64 YEARS 65+ YEARS EDUCATION

2016 2016 2016 2016 MEDIAN POPULATION: HOUSEHOLDS: MEDIAN AGE: HOUSEHOLD INCOME: 5.7M 2.1M 35.9 $58,500 Growth Growth U.S. Median: U.S. Median: 2016-2021*: 2016-2021*: 8.5% 9.1% 37.7 $54,500

QUALITY OF LIFE The Atlanta metro features a surging business environment and modern infrastructure while providing entertainment and attractions. Affordable housing in the outer perimeters lowers the average cost of living. The metro has several acclaimed cultural institutions, including ARTS & ENTERTAINMENT Zoo Atlanta and the High Museum of Art. More than 30 institutions of higher learning call Atlanta home, including Emory University, Georgia Institute of Technology and Spelman College. Outdoor and sports enthusiasts will find plenty to enjoy. Mild weather year-round beckons residents to hike, paddle and bike on the many trails in and around Atlanta. Atlanta is home to professional sports franchises in the NFL, MLB, NBA and WNBA.

* Forecast Sources: Marcus & Millichap Research Services; BLS; Bureau of Economic Analysis; Experian; Fortune; Moody’s Analytics; U.S. Census Bureau

3 WATERFORD MANOR

MARKET OVERVIEW

ATLANTA METRO AREA

Diverse Growth Igniting Apartment Demand, Declining Vacancy and Elevating Rents

Vacancy remains tight despite substantial construction. Growth in degreed fields will expand recruiting to outside of Atlanta and support additional relocations to the metro during 2017, fortifying rental housing demand. New industries will also play a vital role. Notably, the metro has become a hotbed for television and film production, which are bringing hundreds of new jobs to the area. A shortage of production facilities represents the motivation for Georgia Motion Picture Studios to build a $280 million mixed-use development that will become the state’s largest TV and film production lot. Construction begins this year along Atlanta’s northeast perimeter and will include more than 600 apartments. Construction crews remain active around the metro, with several complexes coming online in Midtown and Buckhead. Despite another year of sizable supply growth, healthy tenant demand will tighten the vacancy rate for an eighth consecutive year and raise the average rent to an all-time high in 2017.

Value-add opportunities dominating deal flow. Investor optimism regarding the metro’s economic outlook will encourage transaction activity this year and create new opportunities for owners to bring their properties to market. Investors favor Class B/C garden-style properties within the perimeter near access to major transportation routes. In these areas, improvements and updated amenities can increase market rents and raise property revenue. First-year returns for these assets typically start in the high-5 percent band. The Cumberland/Galleria area also will draw investor interest this year as a new stadium for the Atlanta Braves opens. Several multifamily complexes will be completed near the stadium, providing potential opportunities for investors in institutional-grade assets. Complexes in this area typically trade with cap rates in the low-6 percent range, but the new demand drivers could intensify bidding and place downward pressure on first- year returns.

*Estimate ** Forecast Sources: Marcus & Millichap Research Services; BLS; CoStar Group, Inc.

44 WATERFORD MANOR

MARKET OVERVIEW

ATLANTA METRO AREA

2017 Market Forecast

NMI Rank Corporate expansions drive household growth, moving Atlanta up 14, up 6 places six positions.

Employment Atlanta employers will create 68,000 positions in 2017, extending gains up 2.5% recorded over the past six years. Last year, approximately 79,000 jobs were added.

Construction More than 12,000 apartments remain on track for delivery this year, up from 12,000 units 10,800 units in 2016.

Vacancy Strong tenant demand pushes vacancy down to 4.3 percent. Net down 20 bps absorption of 12,600 units cut the vacancy rate 50 basis points one year ago.

Rent Positive demand drivers and a reduction in vacancy support a 5.0 percent up 5.0% rise in the average rent to $1,128 per month in 2017. An increase of 6.7 percent was posted last year.

Investment Cap rates in the low-6 percent area remain up to 150 basis points higher than the typical first-year returns in gateway cities and will attract out-of- state investors, primarily from New York, California and South Florida, to the Atlanta apartment market.

* Estimate ** Forecast Sources: Marcus & Millichap Research Services; CoStar Group, Inc.; Real Capital Analytics

45 PROPERTYWATERFORDNAME MANOR

MARKETINGDEMOGRAPHICS TEAM Created on June 2017

POPULATION 1 Miles 3 Miles 5 Miles HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles . 2021 Projection . 2016 Estimate Total Population 10,100 93,810 274,350 $200,000 or More 1.01% 1.71% 2.71% . 2016 Estimate $150,000 - $199,000 1.27% 2.83% 3.41% Total Population 10,504 93,744 270,932 $100,000 - $149,000 3.34% 8.15% 9.51% . 2010 Census $75,000 - $99,999 8.15% 9.99% 10.76% Total Population 9,946 89,040 256,358 $50,000 - $74,999 19.72% 18.87% 18.67% . 2000 Census $35,000 - $49,999 20.84% 15.95% 14.33% Total Population 12,781 102,328 278,907 $25,000 - $34,999 13.85% 12.63% 12.12% . Daytime Population $15,000 - $24,999 15.15% 13.59% 12.79% 2016 Estimate 6,570 73,391 223,235 Under $15,000 16.65% 16.26% 15.71% HOUSEHOLDS 1 Miles 3 Miles 5 Miles Average Household Income $46,961 $56,715 $62,839 . 2021 Projection Median Household Income $38,393 $41,566 $44,369 Total Households 4,007 35,188 106,381 Per Capita Income $18,313 $21,438 $24,302 . 2016 Estimate POPULATION PROFILE 1 Miles 3 Miles 5 Miles Total Households 4,095 34,653 103,795 . Population By Age Average (Mean) Household Size 2.53 2.58 2.53 2016 Estimate Total Population 10,504 93,744 270,932 . 2010 Census Under 20 27.33% 25.42% 26.27% Total Households 3,918 33,037 98,775 20 to 34 Years 23.57% 21.99% 22.08% . 2000 Census 35 to 39 Years 6.77% 6.69% 7.05% Total Households 4,670 35,334 100,933 40 to 49 Years 13.11% 14.03% 14.26% Growth 2015-2020 -2.15% 1.54% 2.49% 50 to 64 Years 21.34% 21.50% 20.07% HOUSING UNITS 1 Miles 3 Miles 5 Miles Age 65+ 7.88% 10.38% 10.29% . Occupied Units Median Age 34.40 36.91 36.15 2021 Projection 4,007 35,188 106,381 . Population 25+ by Education Level 2016 Estimate 4,796 38,636 114,034 2016 Estimate Population Age 25+ 6,876 63,462 181,595 Owner Occupied 1,686 19,074 55,461 Elementary (0-8) 3.63% 2.93% 2.69% Renter Occupied 2,409 15,579 48,334 Some High School (9-11) 11.64% 9.83% 7.98% Vacant 701 3,983 10,239 High School Graduate (12) 36.94% 28.31% 25.57% . Persons In Units Some College (13-15) 22.27% 23.21% 22.36% 2016 Estimate Total Occupied Units 4,095 34,653 103,795 Associate Degree Only 6.42% 7.45% 7.52% 1 Person Units 32.19% 29.35% 30.73% Bachelors Degree Only 11.48% 16.90% 18.88% 2 Person Units 28.30% 29.83% 29.39% Graduate Degree 5.23% 9.44% 12.69% 3 Person Units 16.78% 17.19% 16.87% . Population by Gender 4 Person Units 11.14% 11.70% 11.82% 2016 Estimate Total Population 10,504 93,744 270,932 5 Person Units 5.98% 6.30% 5.99% Male Population 46.63% 47.74% 46.58% 6+ Person Units 5.62% 5.64% 5.21% Female Population 53.37% 52.26% 53.42%

Source: © 2016 Experian

46 PROPERTYWATERFORD NAME MANOR

MARKETINGDEMOGRAPHICS TEAM

Population Race and Ethnicity In 2016, the population in your selected geography is 10,504. The The current year racial makeup of your selected area is as follows: population has changed by -17.82% since 2000. It is estimated that 9.81% White, 85.02% Black, 0.02% Native American and 1.02% the population in your area will be 10,100.00 five years from now, Asian/Pacific Islander. Compare these to US averages which are: which represents a change of -3.85% from the current year. The 70.77% White, 12.80% Black, 0.19% Native American and 5.36% current population is 46.63% male and 53.37% female. The median Asian/Pacific Islander. People of Hispanic origin are counted age of the population in your area is 34.40, compare this to the US independently of race. average which is 37.68. The population density in your area is 3,343.21 people per square mile. People of Hispanic origin make up 3.54% of the current year population in your selected area. Compare this to the US average of 17.65%.

Households Housing There are currently 4,095 households in your selected geography. The The median housing value in your area was $112,152 in 2016, number of households has changed by -12.31% since 2000. It is compare this to the US average of $187,181. In 2000, there were estimated that the number of households in your area will be 4,007 2,074 owner occupied housing units in your area and there were five years from now, which represents a change of -2.15% from the 2,597 renter occupied housing units in your area. The median rent at current year. The average household size in your area is 2.53 persons. the time was $609.

Income Employment In 2016, the median household income for your selected geography is In 2016, there are 1,350 employees in your selected area, this is also $38,393, compare this to the US average which is currently $54,505. known as the daytime population. The 2000 Census revealed that The median household income for your area has changed by 6.02% 57.12% of employees are employed in white-collar occupations in since 2000. It is estimated that the median household income in your this geography, and 44.07% are employed in blue-collar occupations. area will be $42,117 five years from now, which represents a change In 2016, unemployment in this area is 8.95%. In 2000, the average of 9.70% from the current year. time traveled to work was 37.00 minutes.

The current year per capita income in your area is $18,313, compare this to the US average, which is $29,962. The current year average household income in your area is $46,961, compare this to the US average which is $78,425.

Source: © 2016 Experian

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