Pohlig Box Factory & Superior Warehouse

POHLIG BOX FACTORY & SUPERIOR WAREHOUSE

INVESTMENT SALE OFFERING MEMORANDUM

A 93 UNIT MIXED-USE VALUE-ADD PROPERTY LOCATED IN HISTORIC SHOCKOE BOTTOM RICHMOND, VA POHLIG BOX FACTORY

TABLE OF CONTENTS

Executive Summary 4

Location Overview 16

Property Overviews 30

Apartment Market Overview 42

Rent Comparable Analysis 46

Financial Analysis 76

2 CONTACTS OFFER SOLICITATION PROCESS

CARTER WOOD OFFER SUBMISSION Associate Offers should be presented in the form of a non-binding Letter of Intent, spelling out 804.350.2109 the significant terms and conditions of Purchasers’ offers including, but not limited to [email protected] (1) asset pricing, (2) due diligence and closing time frame, (3) earnest money deposit, (4) a description of the debt/equity structure and (5) qualifications to close. Offers WINK EWING should be delivered to the attention of Carter Wood at [email protected]. Senior Managing Director 703.575.2157 PROPERTY VISITATION [email protected] Prospective purchasers will have the opportunity to visit the Properties via prescheduled property tours. These tours will include access to a representative DREW WHITE sampling of units and access to maintenance and other similar facilities. No visitations Executive Managing Director will be permitted without advance notice and scheduling. 202.664.5890 [email protected] AVAILABLE TOUR DATES To schedule your tour of the Properties, please contact Ed Garnica at 703.918.4678 or MIKE MARSHALL [email protected]. Executive Managing Director 703.918.4669 [email protected]

ED GARNICA Financial Analyst 703.918.4678 [email protected]

MATTHEW TREUMUN Graphic Designer 703.918.4669 [email protected]

3 POHLIG BOX FACTORY

4 EXECUTIVE SUMMARY

5 POHLIG BOX FACTORY

THE OFFERING

The NKF Mid-Atlantic Multifamily Capital Markets team is pleased to Pohlig Box Factory and Superior Warehouse are centrally located offer for sale Pohlig Box Factory and Superior Warehouse Apartments within the Richmond metro area, which has experienced a decade (the “Properties”) that are located adjacent to each other. The of significant cultural change and has attracted millennials in recent Properties comprises 93 value-add multifamily units as well as 7,697 years due to Richmond’s diverse and exceptionally strong job market. SF of prime ground level retail space located in Shockoe Bottom, Shockoe Bottom is considered one of Richmond’s most eclectic Richmond’s most vibrant and historic river-front commercial district. and historic neighborhoods. The neighborhood continues to thrive thanks to the influx of new small businesses to the area, including The Properties are located in highly walkable areas of the commercial the Capital One Innovation Center and the many other businesses district, falling directly next door to Farm Fresh, a highly popular that are within immediate proximity to the Properties. The Shockoe grocer that happens to be the only Farm Fresh grocer in the Richmond Bottom neighborhood also offers a lively social scene with several area. The Portfolio presents investors with a compelling opportunity popular bars, brewpubs and dance spots situated along picturesque to acquire two boutique multifamily assets that will allow investors to cobblestone streets. realize operational efficiencies that will pave the way for strong cash flow and long-term value appreciation. The Portfolio is being offered on a free and clear basis, allowing investors to take advantage of the currently historically low interest rate environment.

PORTFOLIO SUMMARY

Year Built/ Market Property Units Unit SF Renovated In-Place Rent Rent/SF

Pohlig Box Factory 65 912 1853/2004 $1,178 $1.29

Superior Warehouse 28 874 1852/2004 $1,241 $1.42

Totals / Averages 93 901 $1,197 $1.33

6 Executive Summary INVESTMENT HIGHLIGHTS

STRONG VALUE-ADD POTENTIAL An evaluation of the rental competitive set indicates that investors have the opportunity to further penetrate the $280 to $390 per unit rent differential that exists between similar vintage product in the submarket and the Portfolio Properties. The Portfolio presents the opportunity to increase annual income by a factor of 1 approximately $200,000 at a cost of $372,465, which represents a return on cost of 53.4%. UPSIDE THROUGH REVENUE MANAGEMENT SYSTEM (RMS) Due to the fact current ownership grows rents by less than 1% each year, a new investor would have the opportunity to implement a revenue management system and close the gap between current year-over-year 2 rent growth vs market standard of 3%-4%. This would allow potential investors to gain on average more than 6% net rental income growth while retaining residents and signing new leases. ICONIC SHOCKOE BOTTOM LOCATION The Properties are located in the heart of Richmond’s highly historic and trendy Shockoe Bottom district, providing residents with easy access to the historic neighborhood’s vibrant culture, restaurants and nightlife, and is within walking distance to the James River and the Virginia State Capitol. The Portfolio 3 Properties are considered a walker’s paradise, with an average walk score of 90, which means almost all daily activities can be done by foot. WORLD CLASS EMPLOYMENT Richmond’s diverse and strong job market is in the midst of a significant expansion cycle, and features seven highly recognizable Fortune 500 companies located throughout the metro region. Some of the more notable Richmond-based Fortune 500 companies include Altria, Dominion Virginia Power, CarMax, Owens & 4 Minor, WestRock, and MeadWestvaco to name a few. SOUGHT-AFTER SECONDARY MARKET The Properties present the opportunity for an investor to gain a substantial foothold in the highly-sought after Richmond MSA, which has a market-wide occupancy of 95.6% exceeding national averages while affording the opportunity to achieve outsized yields relative to comparable markets in the southeast such as 5 Charlotte, Raleigh/Durham and Nashville. RICHMOND METRO MARKET REMAINS FAVORABLE The Richmond Metro multifamily market continues to be one of the top performing secondary submarkets on the east coast, with an annual effective rent growth of 3.6% and a 96% occupancy rate so far in 2019, according to Axiometrics. Much of this is accredited to the flood of young professionals who value the “live, 6 work, play” dynamic that Richmond offers. RICHMOND’S COOL VIBE Today, the City of Richmond exudes a very cool vibe that combines being urban in a big city with a small city feel. This blend of culture is what has pulled new tenants to the area and allows the City of Richmond to thrive. While there’s a pronounced Southern culture, the city is cultivating its own mellow buzz, a kind of 7 counterculture that makes it one of the East Coast’s most intriguing places to live in.

Executive Summary 7 POHLIG BOX FACTORY

STRONG VALUE-ADD POTENTIAL

When comparing the rent delta between the comp set and the Properties, average market rents are approximately $280 to $390 more per month than the Properties. The Properties presents the opportunity to enhance value through upgrades of unit interiors to increase annual income by a factor of approximately $200,000 at a cost of $372,465 (or alternatively $4,000 per unit). These large premiums indicate that there is significant room to increase rental revenue with focused upgrades that can potentially include the following:

+ Pohlig Box Factory Potential Upgrades (Light Value-Add) – Installation of new designer lighting, new hardware, under cabinet LED lighting, backsplashes, and updating of flooring in kitchens and bathrooms.

+ Superior Warehouse Potential Upgrades (Moderate Value-Add) – Installation of new hardwood style floors and/or polished concrete floors, stainless steel appliances, granite countertops, designer kitchen cabinets, under cabinet LED lighting, backsplashss, and new hardware. Further, the courtyard amenity space at Superior can be easily expanded to feature gas grills, fire pits and a cabana area.

RENT DIFFERENTIALS 1 Bedroom Unit Rent Differential Comp Set (Avg. Reno Vintage 2007) − 1 Bedroom Units 929 $1,407 Pohlig Box Factory − 1 Bedroom Units 727 $1,016 $391 Superior Warehouse − 1 Bedroom Units 803 $1,130 $277 2 Bedroom Unit Rent Differential Comp Set (Avg. Reno Vintage 2007) − 2 Bedroom Units 1,204 $1,745 Pohlig Box Factory − 2 Bedroom Units 1,181 $1,449 $296 Superior Warehouse − 2 Bedroom Units 1,001 $1,441 $304

Top-of-the-submarket comp set includes Lucky Street Lofts, The Lofts at Canal Walk, and American Cigar

POHLIG BOX FACTORY - LIGHT VALUE ADD UPSIDE Type # Units Rent Premium Cost Return on Cost Studio Units 3 $25 $2,500 12.0% 1 Bedroom Units 41 $150 $2,500 72.0% 2 Bedroom Units 20 $200 $2,500 96.0% 3 Bedroom Units 1 $250 $2,500 120.0% Subtotal/Avg. 65 $161 $2,500 77.4% SUPERIOR WAREHOUSE - STRONG VALUE ADD UPSIDE 1 Bedroom Units 18 $200 $7,500 32.0% 2 Bedroom Units 10 $250 $7,500 40.0% Subtotal/Avg. 28 $218 $7,500 34.9% Total/Avg. 93 $178 $4,005 53.4%

8 Executive Summary STRONG VALUE-ADD PROPOSITION

SUPERIOR WAREHOUSE - DATED KITCHENS

POHLIG BOX FACTORY - MODERN KITCHENS

Executive Summary 9 POHLIG BOX FACTORY

SUPERIOR WAREHOUSE

POHLIG BOX FACTORY

10 Executive Summary SUPERIOR WAREHOUSE

POHLIG BOX FACTORY

Executive Summary 11 POHLIG BOX FACTORY

ICONIC SHOCKOE BOTTOM LOCATION

The Properties feature prime locations in the heart of Richmond’s highly historic and trendy Shockoe Bottom district. The Properties provides residents with easy access to the historic neighborhood’s vibrant culture, restaurants and nightlife, and is within walking distance to the James River and the Virginia State Capitol. Excellent accessibility is made via the Northeast Regional line via Main Street Station, while the Downtown Expressway, I-95 and Main Street make driving to the properties a breeze. Main Street Station has been completely renovated and remains to be one of the submarket’s focal points, in addition to the transformation of the 17th Street Market into an open-air pedestrian plaza.

WALKER’S PARADISE LOCATIONS

The Properties are located in the heart of the Richmond metro, and are within close proximity to several of Richmond metro’s most popular and trendy areas that are buzzing with signature southern charm, young energy, and a bustling restaurant and entertainment scene. Downtown Richmond is known for its many craft breweries and vibrant culinary scene as the city has been luring some of the county’s top chefs which has helped catapult the dining scene onto the national stage. Downtown Richmond has many neighborhoods that are best explored on foot thanks to the city’s historic architecture, picturesque tree-lined avenues and varied businesses and shops.

The Properties’ central locations command an average Walk Score of 90.

12 Executive Summary WORLD CLASS EMPLOYMENT

Richmond Metro Home to seven Fortune 500 companies, the Richmond metro ranks at the top among the nation’s mid-sized cities. The Richmond metro’s strong corporate presence is indicative of why Richmond has more Fortune 500 companies than San Diego, Philadelphia, San Antonio and Phoenix, all of which have significantly greater city populations.

In October 2017, Facebook announced plans to invest $1 billion CoStar Group, the world’s leader in commercial real estate information with the development of a 975,000 square foot state-of-the-art data and analytics, relocated its operations and global research center center facility located at White Oak Technology Park in Henrico County. from Washington, DC to Downtown Richmond in 2016. Richmond’s information technology center is booming, with over $12 billion in capital investment over the past decade.

We are thrilled to be in Richmond, and we look forward to being an engaged corporate citizen. This will be our “single-biggest operations and global research center. Andrew C. Florance, Founder and CEO, CoStar Amazon.com’s presence in Richmond is growing, with the online giant ” currently operating three fulfillment centers in the Richmond area, employing over 3,800 employees. Amazon has plans to open two additional distribution facilities in the near-term that is set to further bolster the company’s presence in the region. Capital One, metro Richmond’s largest private employer with more than 10,000 employees, operates six local Richmond offices, with one campus in Goochland County, additional operations in Henrico and Chesterfield Counties and in downtown Richmond. Capital One currently ranks in second place among the mega-size firms, as one of Richmond’s best places to work, and currently ranks #101 on the Headquartered in Richmond, Dominion Energy is one of the nation’s Fortune 500 list, and #17 on Fortune’s 100 Best Companies to work largest producers and transporters of energy, and has been for. recognized as one of Richmond’s Top Workplaces for 2018, ranked as Richmond’s 4th largest employer with 4,615 employees. Dominion Energy’s recent investment of $1 billion in its solar fleet in Virginia and North Carolina has allowed the company to rank among the nation’s top 5 solar and wind energy producers. In 2008, Altria invested in downtown Richmond by opening a $350 million research and technology center in the Virginia Biotechnology Research Park. Altria Group, Inc. currently employs approximately 4,344 employees in the Richmond area, and ranks #154 on the Fortune 500 list. Altria’s economic impact remains substantial, with its manufacturing center in South Richmond to generate about $28 million in federal excise taxes, a total of about $6.4 billion in 2017. other companies sprouted in the Richmond area in part because of the The Rolls-Royce Crosspointe facility in nearby Prince George County tobacco company’s presence. is a center of excellence for the manufacture of precision-engineered engine components for some of the most advanced aircraft in the world. Located on 1,000 acres of land, the Rolls-Royce facility opened in 2011 and is the first Roll-Royce manufacturing facility built from the ground up in the U.S. The facility employs 300 people.

Executive Summary 13 POHLIG BOX FACTORY

RICHMOND’S COOL VIBE

Today, the city of Richmond exudes a very cool vibe combining being urban in a big city with a small city feel. This blend of culture is what has pulled new tenants to the area and allows the city of Richmond to thrive.

+ A Culinary Hot Spot – The dining scene has catapulted onto the national stage, luring some of the country’s top chefs. The Richmond metro featured the most semifinalists for the 2018 James Beard Foundation Award, including restaurants such as Sub Rosa and Brenner Pass--the most honorees the area has had for the nation’s top culinary awards.

+ A Thriving Arts Scene – Richmond is also known for its progressive and thriving arts scene. Virginia Commonwealth University’s School of the Arts ranked No. 1 in the nation in 2012 among public art schools by U.S. News & World Report. Sub Rosa + Southern Historical Charm – The city of Richmond has a decidedly southern charm, with its stately Colonial Revival architecture and the various historic sites bearing witness to the Civil War and the Civil Rights Movement.

+ Cool New Vibe with a Southern Culture – The combination of Richmond’s southern vogue culture, historical charm, and explosive millennial population growth, has allowed the area to consistently land on US News & World Report’s list of the Best Places to Live. Tourists who are drawn to the area have an abundance of lodging, including the Quirk Hotel, which was named one of the South’s best hotels for the 2018 by Southern Living Magazine. Brenner Pass

2018 James Beard Foundation Award Semifinalists Outstanding Baker − Sub Rosa Bakery Outstanding Wine/Beer/Spirits − Mekong Best Chef Mid-Atlantic − Brenner Pass The Quirk Hotel 14 Executive Summary THE ICONIC RICHBRAU BREWING IN SHOCKOE BOTTOM

Executive Summary 15 POHLIG BOX FACTORY

16 LOCATION OVERVIEW

17 POHLIG BOX FACTORY

RICHMOND MSA

Richmond, located in central Virginia, is approximately 100 miles south of Washington, D.C. The greater Richmond MSA is home to nearly 1.3 million residents and is one of the strongest secondary real estate markets in the country. More recently, it has established itself as a leader in a number of other industry sectors, including medical, biotechnology, manufacturing and transportation.

POPULATION GROWTH The population of the Richmond Metro Area has increased approximately 39.0% since 2000 to 1,271,330 today, representing strong average annual population growth of 2.3%. The population is projected to continue to grow to 1,328,690 by 2020. In addition, between the end of 2017 and 2020, the Richmond Metro Area is expected to add 44,000 new jobs, marking 6.6% employment growth.

RICHMOND IS #9 IN PROJECTED ABSOLUTE POPULATION GROWTH FROM 2013-2030 FOR ALL NATIONAL MSA’S.

18 Location Overview Location Overview 19 POHLIG BOX FACTORY

THE CITY OF RICHMOND 1 GENWORTH FINANCIAL

The City of Richmond is the capital of Virginia and offers complete livability and a wealth of 2 ALTRIA amenities not often found in other East Coast municipalities. It is located in central Virginia and occupies 62.5 square miles. Richmond is home to over 223,000 people, an 8.7% increase over 3 BON SECOURS VIRGINIA its 2010 population of 204,243. The population is expected to grow an additional 1.3% each HEALTH SYSTEM year between 2018 and 2021. 4 VIRGINIA The city is recognized for its vitality, alongside its educational heritage and flourishing cultural BIOTECHNOLOGY PARK community. It is consistently identified by several national publications, such as U.S. News and Livability, as being among the “Best Places to Live and Work in America.” Richmond employs 5 DOMINION ENERGY 165,645 people and has seen consistent employment growth of about 2.2% annually since 2006. The city’s recent strong employment growth is in part due to its diverse employment 6 BANK OF AMERICA base, which ranges from chemical and tobacco manufacturing to biotechnology. 7 VCU Richmond also provides an abundance of recreational and entertainment options to its residents. It is the site of countless restaurants and entertainment attractions, as well as NEW MARKET numerous historic landmarks and the nation’s largest river park system. The Virginia Capital 8 Trail located along the banks of the James River on the west side of Richmond, offers 52-miles of shared-use trails that highlight the rich historic, cultural and environmental assets along 9 WELLS FARGO the Route 5 Virginia Byway. The trail features interpretive sites with information kiosks and bicycling and pedestrian amenities to accommodate users of all ages and abilities. 10 BB&T

11 COSTAR

12 RICHMOND TIMES- DISPATCH

13 ANTHEM

14 PROXIOS

15 ODELL

16 HOURIGAN CONSTRUCTION

17 HUNTON & WILLIAMS CITY OF RICHMOND NOTABLE EMPLOYERS CITY OF RICHMOND NOTABLE 18 LECLAIRRYAN

19 MCGUIREWOODS

20 WILLIAMS MULLEN

21 VCU HEALTH SYSTEM

22 VIRGINIA STATE CAPITOL

20 Location Overview Location Overview 21 POHLIG BOX FACTORY

SHOCKOE BOTTOM

Located just east of Shockoe Slip and the Business District, along the picturesque James River, the trendy Shockoe Bottom District is one of the City of Richmond’s oldest neighborhoods that has experienced a major boom in residential growth since the mid-1990s. Historically, the district was the site of key tobacco industry structures such as old tobacco warehouses and Federal Customs Houses that have since been converted to loft style apartments, breweries, trendy restaurants, and shops that cater to Richmond’s fast growing millennial segment. The City’s installation of the Pulse bus rapid transit line along Main Street, and the long-planned transformation of the 17th Street Farmers’ Market into an open-air pedestrian plaza with café-style seating, continues to provide momentum to the District’s emergence as one of Richmond’s hippest neighborhoods.

MAIN STREET STATION

22 Location Overview SHOCKOE SLIP

Tucked between the Central Business District and Shockoe Bottom, Shockoe Slip is a vibrant Richmond neighborhood that has become famous for its electic restaurant scene and history.The name “slip” refers to a narrow passageway of land from the James River to Main Street where the former Kanawha Canal existed, and was necessary to load and unload goods from the large ships in the Canal. Beginning in the 1960s, Shockoe Slip was redeveloped as a district catering to upscale living and entertainment. Today, the district features historic buildings and cobblestoned streets, all set against beautiful Italianate architecture. The area is home to legendary brewpubs, and an exciting restaurant and nightlife scene. The Slip, due to its location adjacent to Downtown, has experienced a consistent growth pattern beginning with its reemergence in the late 1970’s, and the Slip’s retailers are some of the longest running in the City. The Slip is also steps to the Canal Walk and a short walk to Brown’s Island for the summer concert THE ICONIC TABACCO COMPANY RESTAURANT series, kayaking, paddle boarding, swimming and more.

CHURCH HILL

Church Hill, also known as St. John’s Church Historic District, is one of Richmond’s oldest neighborhoods that overlooks Shockoe Bottom and Downtown. As Richmond’s first historic district, and as one of the most buzzed about neighborhoods in Richmond today, the neighborhood is filled with Richmond’s oldest history. From the red brick sidewalks and gas street lamps, to the classical architectural that includes the Greek Revival, Italianate, Federal and Queen Anne styles, Church Hill offers a variety culture and history to the Richmond metro.The 20 historic churches within its 2-mile radius gives it the iconic name it bears today, and many of which have been converted into residential and commercial spaces.

In recent years, Church Hill has become known for its incredible culinary and restaurant scene, many of which have won national recognition and as noted by USA Today in its list of the 10 Best Up- and- Coming Neighborhoods Around the USA. This community also hosts several big events each year, including a Holiday House Tour and Hogtober, a BBQ festival.

Location Overview 23 POHLIG BOX FACTORY

CENTRAL BUSINESS DISTRICT

Stretching across the few blocks that sit next to the James River between both ends of Broad Street, the central business district of Richmond is the bustling heart of the city where government, business, the arts and education all merge together. This diverse area includes not only the skyscrapers of the main business and financial district, but also Monroe Ward, Shockoe Bottom, and the cobblestoned charm of Shockoe Slip. There is a large government presence in the area, with various state executive, legislative offices, state and federal courts, and City Hall. Nearby, the Library of Virginia offers an unparalleled collection of both print and digital resources on Virginia history and culture. further to the west is the Greater Richmond Convention Center, where hundreds of meetings are hosted every year and brings a range of associations and groups to the city.

With its confluence of institutions of higher education, downtown offers a unique environment with a plethora of opportunities for collaborative learning. University of Richmond Downtown provides students interested in urban studies, civic engagement, social services, law and arts education the chance to engage with the Greater Richmond community in the classroom.

+ VCU Health System - Since the VCU Health System and Children’s Hospital of Richmond joined in 2010 to form Children’s Hospital of Richmond, new plans have been recently announced that will bring a new state-of-the-art inpatient children’s facility that will be adjacent to the outpatient Children’s Pavilion on the VCU Medical Center campus. The project will complete the Children’s Pavilion as a comprehensive, integrated health care facility exclusively for children’s inpatient and outpatient care. The facility is expected to cost more than $350 million and will include 86 licensed beds plus six observation beds relocated from the Main Hospital, with the capacity to increase to about 125 beds in the future. The project is part of a strategic commitment by the VCU Health System and Children’s Hospital of Richmond to be ranked in the top 20 children’s hospitals in the United States by 2022.

+ The 1717 Innovation Center - The 1717 Innovation Center, a new business incubator in Richmond’s Shockoe Bottom, recently opened in 2018 and serves as a hub for resources to support entrepreneurs in the Richmond metro. Backers of the 1717 Innovation Center include financials services giant Capital One Financial Corporation, which has invested in the incubator as part of its Future Edge initiative, a five-year, $150 million grant program aimed at supporting entrepreneurs, workforce training and financial education in the communities where the company has operations. The Innovation Center serves as an incubator for as many as 50 startup businesses at a time, providing office space along with mentoring, leadership programs, community events and conferences.

+ Downtown Arts District - The arts have a large presence downtown, particularly after the 2012 creation of the Downtown Arts District, encompassing almost 80 blocks of concert venues, art galleries, and performance spaces between Belvidere and 12th Streets.

VCU HEALTH CAMPUS

24 Location Overview + Virginia Commonwealth University - Virginia Commonwealth University has a huge footprint in the area, with an urban campus that comprises a student population of more than 31,000. The VCU Medical School, formerly the Medical College of Virginia, also dominates the area surrounding the unique pocket of federal architecture known as Court End, and is the #1 ranked medical center in the Richmond metro with the only Level I trauma center in central Virginia. Together, VCU and VCU Medical Center are the City of Richmond’s largest employer with approximately 23,000 employees.

+ The VA Bio+Tech Park - The VA Bio+Tech Park is a vibrant and dynamic life sciences and emerging technologies community located adjacent to the VCU Medical Center on a 34-acre campus in downtown Richmond. Home to nearly 70 companies, research institutes, and state/federal laboratories, the Park is adjacent to the medical campus of VCU, a “Top 100” life sciences research center. It is estimated that the park employs approximately 2,400 researchers, scientists, engineers and support personnel. Major member organizations in the park include the VCU Innovation Gateway, the Altria Center for Research and Technology, United Network for Organ Sharing, True Health Diagnostics and the Virginia Division of Consolidated Laboratory Services.

+ James River Park System - Richmond wouldn’t be known as the River City without the James River, which flows around and through downtown, defining its boundaries and giving the city so much of its unique flavor. With its Class IV kayaking rapids and the many hiking and biking trails that line its banks, the river is the hub for much of Richmond’s outdoor recreation. The Canal Walk, which stretches over a mile along the James and the Kanawha and Haxall canals, provides an oasis of calm only a block from downtown, as well as beautiful views of both the water and the city skyline. Closer to campus lies Pony Pasture Park, which offers canoeing, kayaking, jogging, swimming, and fishing, as well as a site for student research.

MANCHESTER

+ Located on the south bank fall line of the James River, just across from downtown’s central business district, is the town of Manchester. Manchester was originally an independent city and major seaport until 1920 when it was consolidated into the city of Richmond. Currently experiencing a revitalization and conversion of old warehouses and factories into apartments, office and retail space, Manchester and its main thoroughfare, Hull Street, is becoming a hot spot for new development.

+ The City recently developed and unveiled its community-led Richmond Riverfront Plan, that places targeted efforts to enhancing access to the riverfront, particularly the south side in Manchester.

+ Manchester is going through an unprecedented growth of residential and mixed-use development, where hundreds of new residential units have been built in the last ten years, attracting a diverse group of new residents that are attracted to adaptively-reused warehouses, proximity to downtown and the edgy, creative neighborhood.

+ Manchester whas become a hotspot for Breweries and Restaurants. Notable breweries along the riverfront include Legend’s Brewery, Dogtown Brewing Company, the Climax Beverage Company, and the soon-to-be-open Manastoh Brewing. New dining options include Plant Zero Cafe, Brewer’s Cafe, La Vera, and Camden’s Dogtown Market.

+ The area has also become the headquarters location for several Fortune 500 and start-up companies. UPS Freight, SunTrust, CRT Tanaka and Tumblr are just some of the big name companies that chose Manchester as their HQ location. This area’s urban appeal attracts creative firms in the architecture, information technology and graphic design fields, as well as specialized advanced manufacturing companies.

Location Overview 25 POHLIG BOX FACTORY

Central Business District

Church Hill Riverfront Shockoe POHLIG BOX FACTORY Slip & SUPERIOR WAREHOUSE APARTMENTS

Shockoe Bottom

Manchester

26 Location Overview NEIGHBORHOOD ATTRACTIONS

SHOCKOE BOTTOM SHOCKOE SLIP

The Edgar Allen Poe Museum Poe’s Pub Sine Irish Pub Virginia Holocast Museuem CVS Courtyard by Marriott Richmond La Bamba Libby Hill Park Southern Railway Taphouse Havana 59 Downtown Great Shiplock Park Cha Cha’s Southwest Kitchen & Bar Bottoms up Pizza Virginia Capital Trail Buffalo Wild Wings Grace Noodle Richmond Trailhead Vistas on The James Nota Bene Restaurant & Bar Ironclad Coffee Roasters James River Park Pipeline Walkway Southern Kitchen Margarita’s Cantina Pipeline Overlook Honey Whyte’s All American Cafe Ponies & Pints The Hard Shell Tio Pablo Adam Craig House Ten Thousand Villages LuLu’s 17th St. Farmers Market Bistro Bobette Addis Mijas Cantina Bookbinder’s Seafood & Steakhouse Sam Miller’s Farm Fresh Kobe Japanese Steaks and Sushi Main Street Station Urban Farmhouse Market & Cafe The Canal Club Shockoe Espresso & Roastery Sumo Sam Bistro Bobette Canal Walk

Location Overview 27 POHLIG BOX FACTORY

28 PROPERTY OVERVIEWS

29 POHLIG BOX FACTORY

30 Property Overview POHLIG BOX FACTORY

Property Overview 31 POHLIG BOX FACTORY

PROPERTY OVERVIEW – POHLIG BOX FACTORY

C ONSOLIDATED U NIT M IX

IN-PLACE UNIT DESCRIPTION # OF UNITS % TYPE UNIT SF IN-PLACE RENT RENT/SF Studio 3 4.3% 611 $943 $1.54 1BR/1BA 41 58.6% 727 $1,016 $1.40 2BR/1BA 3 4.3% 844 $1,215 $1.44 2BR/2BA 13 18.6% 1,074 $1,366 $1.27 2BR/2.5BA 3 4.3% 1,598 $1,615 $1.01 2BR/2.5BA Penthouse 1 1.4% 2,338 $2,725 $1.17 4BR/2.5BA Penthouse 1 1.4% 4,043 $3,100 $0.77 Commercial Space 5 7.1% 1,539 $1,525 $0.99 TOTALS/AVERAGES 70 100.0% 957 $1,203 $1.26

TOTALS/AVERAGES  Studio Total # of Units 65  1 BR Average Unit Size 957  2 BR Net Rentable SF 67,004 3 BR Market Average Rent/Month $1,203  Gross Potential Monthly Rent $84,183  Commercial Spaces Gross Potential Yearly Rent $1,010,196

UTILITIES PERSONAL OVERVIEW POWER POSITION STATUS SALARY UTILITY PAID BY SERVICER SOURCE Property Manager 1 Full-time $51,000 Heating Electric Resident Dominion VA Power Maintenance Supervisor 1 Full-time $36,700 A/C Electric Resident Dominion VA Power 1 Part-time ($13/hour, Natural Gas Housekeeper 15 to 20 hour average $14,500 Gas Resident City of Richmond (PH unit only) work week) Water/ 1 Part-time ($13/hour, N/A Resident City of Richmond Sewer/Trash Groundskeeper 15 to 20 hour average $7,800 Telephone N/A Resident Cavalier Telephone work week) Cable/ N/A Resident Internet

*Property utilizes a Conservice bill back system for water and sewer service

32 Property Overview PROPERTY CHARACTERISTICS - POHLIG BOX FACTORY Year Built 1853 and 1972, with major interior renovation to the current apartment and retail configuration in 2004 Building Style 4-story mid-rise building The interior stairs are constructed of steel and have open risers and wood treads. The handrails and balusters are Exterior and Interior Stairs constructed of metals Exterior walls are finished with brick masonry. Portions of the exterior brick walls are accented with historic paint- Exterior ed signage, with some of the exterior walls clad with copper siding. The building’s superstructure consists of concrete masonry unit exterior and interior bearing walls supporting the Structure/Framing upper floor and roof diaphragms. Support columns are wood timbers or cast in place reinforced concrete. Reinforced concrete slabs-on-grade with integral perimeter footings, interior footings and column pad footings Foundation bearing directly on the soil. Roofs are of mixed types, with some being classified as pitched, or gabled, roofs and other areas being classified as Roof low slope, or flat, roofs. The roofs that are classified as low slope roofs are finished with a single-ply, elastomeric, roofing membrane. The windows along the north and east elevations are historic wood-framed, single-glazed, double-hung windows. Windows along the south elevation are a mix of aluminum-framed, double-glazed, awning units and factory type Windows steel framed single-glazed, tilt out units. Windows along the west elevation are steel framed, single glazed fixed pane units. Windows facing the interior courtyard are new aluminum-framed, double-glazed, single-hung units and have exterior screens. The retail and office unit entrance doors are full glazed, aluminum-framed doors set in metal frames. Two of the tenant unit entrance doors are pained, wood doors set in wood frames. The apartment unit entrance doors are Balcony Doors stained, solid-core wood doors set in metal frames. Entrance doors to the apartments contain cylindrical locksets with lever handle hardware, keyed deadbolts, spy-eyes and door knockers. Some upper level apartment units have a concrete balcony. The balcony decks are topped with patio pavers. The Balconies balconies have concrete and painted metal guardrails. The lobby contains mailboxes and a seating area. Elevators, corridors, and stairways are accessed directly from Common Areas the lobby. The lobby has exposed concrete floors and painted, drywall-finished walls and ceilings. Apartment unit entrances are accessed from corridors beyond the lobby and from corridors on each floor. The Entrances & corridors have exposed concrete floors and painted, drywall-finished walls and suspending ceilings with acoustical Corridors ceiling tiles. HVAC are provided by split system air conditioners with electric heat. The furnace units are located in mechanical HVAC closets. In the larger retail spaces, the furnaces are located in the occupied space, and the AC condensing units are mounted on the roof. Water Heater Each apartment unit has a 50-gallon, electric water heater. Electrical & Conveying There are a total of two hydraulic passenger elevators, with a rated capacity of 2,500 pounds in each elevator. Systems Each elevator cab has ceramic tile floors, plastic-laminated wood wall panels, and recessed ceiling light fixtures. The electrical supply lines run underground to pad-mounted transformers feeding interior mounted electrical me- ters. The main electrical service size to the building is 4,000-amp, 120/208 volt, three phase, four wire, alternating Electrical current. The electrical wiring is copper, installed in metallic conduit. Circuit breaker panels are located in each tenant space. The electrical service to each apartment unit ranges from a minimum of 150 amps. The plumbing systems include the incoming water service, the cold water piping system, and the sanitary sewer Plumbing and vent system. The risers and the horizontal distribution piping are CPVC. Pressure is maintained to the domes- tic water system by a duplex pumping system located adjacent to the fire sprinkler risers. The fire protection system consists of a wet-pipe and a dry-pipe sprinkler system. The building also features a Fire and Safety natural gas-powered, 37.5 kVA, emergency generator is located in the parking garage, to provide back-up power for elements of the fire and life safety systems. 53 parking stalls, of which 18 are located in a garage. The garage parking is associated with the apartment units Parking Area and provides a parking ratio of 0.28 spaces per apartment unit. The open lot parking is associated with the retail units and provides a parking ratio of 3.70 spaces per thousand square feet of floor area. Laundry All of the apartment units are equipped with washers and dryers. Bellevue Elementary Schools Martin Luther King, Jr. Middle Armstrong High

Property Overview 33 POHLIG BOX FACTORY

POHLIG BOX FACTORY COMMUNITY AMENITIES LOBBY

+ SECURED ACCESS BUILDING + ELEVATOR LOBBY + COFFEE BAR IN LOBBY + STATE-OF-THE-ART FITNESS CENTER + LAVISH COURTYARD AREA + GARAGE PARKING + 24-HOUR BUILDING MAINTENANCE + COMPLIMENTARY CONCIERGE SERVICE + LOCATED NEXT DOOR TO FARM FRESH

COURTYARD

34 Property Overview POHLIG BOX FACTORY UNIT FEATURES

+ LUXURIOUS OPEN CONCEPT LAYOUTS + 65 UNIQUE FLOORPLANS + SPECTACULAR CITY VIEWS + HIGH CEILINGS + EXPOSED BRICK ACCENT WALLS, BEAMS AND DUCTWORK + ORIGINAL HARDWOOD FLOORS IN LIVING AREAS AND BEDROOMS* + FULLY APPLIANCED SPACIOUS KITCHENS WITH GRANITE COUNTERTOPS AND STAINLESS STEEL APPLIANCES + STAINED POLISHED CONCRETE FLOORS AND/ OR BERBER CARPETING + CUSTOM TRACT LIGHTING + CEILING FANS + IN UNIT FULL-SIZE WASHER AND DRYERS

LEASING OFFICE

Property Overview 35 POHLIG BOX FACTORY

36 Property Overview SUPERIOR WAREHOUSE APARTMENTS

Property Overview 37 POHLIG BOX FACTORY

PROPERTY OVERVIEW – SUPERIOR WAREHOUSE APARTMENTS

C ONSOLIDATED U NIT M IX

IN-PLACE UNIT DESCRIPTION # OF UNITS % TYPE UNIT SF IN-PLACE RENT RENT/SF 1BR/1BA 18 64.3% 803 $1,130 $1.41 2BR/1BA 5 17.9% 919 $1,382 $1.50 2BR/2BA 5 17.9% 1,084 $1,499 $1.38 TOTALS/AVERAGES 28 100.0% 874 $1,241 $1.42

TOTALS/AVERAGES Total # of Units 28

Average Unit Size 874  1 BED Net Rentable SF 24,469  2 BED Market Average Rent/Month $1,241 Gross Potential Monthly Rent $34,745 Gross Potential Yearly Rent $416,940

UTILITIES PERSONAL OVERVIEW POWER POSITION STATUS SALARY UTILITY PAID BY SERVICER SOURCE Property Manager 1 Full-time $51,000 Heating Electric Landlord Dominion VA Power Maintenance Supervisor 1 Full-time $36,700 A/C Electric Landlord Dominion VA Power 1 Part-time ($13/hour, Natural Gas Housekeeper 15 to 20 hour average $14,500 Gas Landlord City of Richmond (PH unit only) work week) Water/ 1 Part-time ($13/hour, N/A Landlord City of Richmond Sewer/Trash Groundskeeper 15 to 20 hour average $7,800 Telephone N/A Landlord Cavalier Telephone work week) Cable/ N/A Landlord *Payroll is allocated between Pohlig Box Factory and Superior Warehouse. Internet

*All utilities are included in the monthly rent

38 Property Overview PROPERTY CHARACTERISTICS - SUPERIOR WAREHOUSE Year Built 1852, with major interior renovation in 2001 Building Style 5-story mid-rise building The interior stairs are constructed of steel and have open risers and wood treads. The handrails and balusters are Exterior and Interior Stairs constructed of metals Exterior walls are finished with brick masonry. Portions of the exterior brick walls are accented with historic Exterior painted signage. The building’s superstructure consists of concrete masonry unit exterior and interior bearing walls supporting the Structure/Framing upper floors. Support columns are wood timbers or cast in place reinforced concrete. Reinforced concrete slabs-on-grade with integral perimeter footings, interior footings and column pad footings Foundation bearing directly on the soil. Roofs are of mixed types, with some being classified as pitched, or gabled, roofs and other areas being classified as Roof low slope, or flat, roofs. The roofs that are classified as low slope roofs are finished with a single-ply, elastomeric, roofing membrane. Windows Windows are aluminum-framed, double-glazed, single-hung units and have exterior screens. The apartment unit entrance doors are stained, solid-core wood doors set in metal frames. Entrance doors to the Doors apartments contain cylindrical locksets with lever handle hardware, keyed deadbolts, spy-eyes and door knockers. Balcony Doors None of the units contain balconies. Balconies N/A The lobby contains mailboxes and a seating area. Elevator, corridors, and stairways are accessed directly from the Common Areas lobby. The lobby has carpeted flooring and painted, drywall-finished walls and ceilings. Apartment unit entrances are accessed from corridors beyond the lobby and from corridors on each floor. The Entrances & corridors have exposed concrete floors and painted, drywall-finished walls and suspending ceilings with acoustical Corridors ceiling tiles. HVAC Geo-thermal with boiler/chiller system Water Heater Each apartment unit has a 50-gallon, electric water heater. Electrical & Conveying There is only one hydraulic passenger elevator, with a rated capacity of 2,500 pounds. The elevator cab has ce- Systems ramic tile floors, plastic-laminated wood wall panels, and recessed ceiling light fixtures. The electrical supply lines run underground to pad-mounted transformers feeding interior mounted electrical me- ters. The main electrical service size to the building is 4,000-amp, 120/208 volt, three phase, four wire, alternating Electrical current. The electrical wiring is copper, installed in metallic conduit. The electrical service to each apartment unit ranges from a minimum of 150 amps. The plumbing systems include the incoming water service, the cold water piping system, and the sanitary sewer Plumbing and vent system. The risers and the horizontal distribution piping are CPVC. Fire and Safety The Property has a wired fire alarm system that is monitored by Richmond Alarm. Parking Area 12 parking stalls located in the surface lot located at the rear of the Property. Laundry All of the apartment units are equipped with washers and dryers Bellevue Elementary Schools Martin Luther King, Jr. Middle Armstrong High

Property Overview 39 POHLIG BOX FACTORY

LOBBY

SUPERIOR WAREHOUSE APARTMENTS COMMUNITY AMENITIES

+ SECURED ACCESS BUILDING + ELEVATOR LOBBY + OFF-STREET PARKING AVAILABLE + 24-HOUR BUILDING MAINTENANCE + COMPLIMENTARY CONCIERGE SERVICE + LOCATED NEXT DOOR TO FARM FRESH

COURTYARD

40 Property Overview SUPERIOR WAREHOUSE APARTMENTS LOBBY UNIT FEATURES

+ LUXURIOUS OPEN CONCEPT LAYOUTS + SPECTACULAR CITY VIEWS + HIGH CEILINGS + FULLY APPLIANCED SPACIOUS KITCHENS WITH LAMINATE COUNTERTOPS AND WHITE-ON- WHITE APPLIANCES + CERAMIC TILE KITCHEN FLOORS + EXPOSED BRICK ACCENT WALLS, BEAMS AND DUCTWORK + HARDWOOD FLOORING IN ENTRY FOYERS + BERBER CARPETING AND/OR LAMINATE FLOORING IN LIVING AREAS AND BEDROOMS + CUSTOM TRACT LIGHTING + CEILING FANS + IN UNIT HIGH EFFICIENCY LG WASHER AND DRYER COMBO UNITS

Property Overview 41 POHLIG BOX FACTORY

42 APARTMENT MARKET OVERVIEW

43 POHLIG BOX FACTORY

RICHMOND METRO MULTIFAMILY MARKET

+ Effective Rent Growth – Annual effective rent growth is projected to grow by 3.6% in 2019, and is projected to average 2.5% per year from 2019 to 2023. + Occupancy – Occupancies in the Richmond multifamily market are strong, with an average occupancy rate of 95.6%, and this is projected to remain above 95% throughout 2023. + Supply Pipeline – Overall market deliveries increased from 1,667 units in 2018 to a projected 2,487 units in 2019. The total number of expected deliveries is projected to average 1,625 new units per year through 2023.

Richmond Metro Multifamily Market Fundamental Trends

5 YEAR VARIABLE 2017 2018 2019F 2020F 2021F 2022F 2023F FORECAST AVERAGE 2019-2023 Annual Avg Effective Rent 4.0% 4.0% 3.6% 2.2% 1.5% 2.6% 2.7% 2.5% Growth Occupancy (Qtrly Average) 95.5% 96.0% 95.6% 95.1% 95.2% 95.3% 95.3% 95.3% New Supply 1,283 1,667 2,487 1,716 1,381 1,256 1,287 1,625 Demand 2,374 1,871 1,546 1,420 1,637 1,197 1,227 1,405 Inventory Growth 1.3% 1.6% 2.4% 1.6% 1.3% 1.2% 1.2% 1.5% Source: Axiometrics, 1Q19

44 Apartment Market Overview EAST RICHMOND MULTIFAMILY SUBMARKET

+ Effective Rent Growth – Annual effective rent growth is projected to grow by 3.3% in 2019, and is projected to average 2.1% annually from 2019 to 2023.

+ Occupancy – Occupancies in the East Richmond multifamily submarket are strong, with an average occupancy rate of 94.2%, and is projected to remain consistent throughout 2023.

+ Limited Supply Pipeline – The East Richmond multifamily submarket is expected to experience limited deliveries between 2019 and 2022, projected to average 326 units per year.

East Richmond Multifamily Submarket Fundamental Trends

5 YEAR VARIABLE 2017 2018 2019F 2020F 2021F 2022F 2023F FORECAST AVERAGE 2019-2023 Annual Avg Effective Rent 3.6% 3.5% 3.3% 1.9% 1.0% 1.9% 2.3% 2.1% Growth Occupancy (Qtrly Average) 94.3% 94.4% 94.2% 93.9% 94.0% 94.1% 94.1% 94.1% New Supply 104 580 723 258 242 200 207 326 Demand -52 750 449 241 274 187 194 269 Inventory Growth 0.6% 3.3% 4.0% 1.3% 1.2% 1.0% 1.0% 1.7% Source: Axiometrics, 1Q19

Apartment Market Overview 45 POHLIG BOX FACTORY

46 RENT COMPARABLE ANALYSIS

47 POHLIG BOX FACTORY

Shockoe Center Terrace 202 Raven Place Bobber Flats American Tobacco Center The Lofts at Shockoe Slip Garber Gables Cobblestone Commons Fording Flats The Lofts at Canal Walk Superior Warehouse Old Stone Row Pohlig Box Factory Main 2323 Lucky Strike Lofts American Cigar The Lofts at Consolidated Carolina Shiplock Watch Cameron Kinney

48 Rent Comparable Analysis RENT RANKINGS − STUDIO UNITS

PROPERTY YEAR BUILT/RENO. # OF UNITS AVERAGE SF MARKET RENT MARKET RENT/SF Main 2323 1917/2016 18 550 $970 $1.76 The Lofts at Canal Walk 1917/2012 66 497 $950 $1.91 The Tracks at Shockoe Crossing 1853/2004 3 611 $943 $1,54 AVERAGE 512 $954 $1.86

RENT RANKINGS − ONE BEDROOM UNITS

PROPERTY YEAR BUILT/RENO. # OF UNITS AVERAGE SF MARKET RENT MARKET RENT/SF Lucky Strike Lofts (1BD/1.5BA) 1955/2008 5 957 $1,434 $1.50 The Lofts at Canal Walk 1917/2012 67 901 $1,418 $1.57 Lucky Strike Lofts (1BD/1BA) 1955/2008 67 858 $1,388 $1.62 American Cigar (1BD/1.5BA) 1914/2000 7 1,000 $1,387 $1.39 Consolidated Carolina 1926 133 923 $1,332 $1.44 Shockoe Center (1BD/1BA) 1853/2001 29 716 $1,308 $1.83 Main 2323 (1BD/1.5BA) 1917/2016 4 672 $1,272 $1.89 The Lofts at Shiplock Watch (1BD/1.5BA) 1840/2013 2 765 $1,209 $1.58 Fording Flats 1928 58 657 $1,202 $1.83 Terrace 202 2013 40 586 $1,198 $2.04 The Lofts at Shipock Watch (1BD/1BA) 1840/2013 30 627 $1,171 $1.87 Garber Gables 1940/2018 30 678 $1,150 $1.70 Cameron Kinney 1884/1991 170 876 $1,149 $1.31 Superior Warehouse 1852/2004 18 803 $1,130 $1.41 American Cigar (1BD/1BA) 1914/2000 110 842 $1,110 $1.32 Main 2323 (1BD/1BA) 1917/2016 39 1,195 $1,076 $0.90 Old Stone Row 2011 56 590 $1,063 $1.80 Raven Place 1910/2008 60 716 $1,024 $1.43 Pohlig Box Factory 1853/2004 41 727 $1,016 $1.40 Bobber Flats 1900/2010 31 576 $1,006 $1.75 American Tobacco Center 2005 64 719 $986 $1.37 AVERAGE 801 $1,179 $1.47

Rent Comparable Analysis 49 POHLIG BOX FACTORY

RENT RANKINGS − TWO BEDROOM UNITS

PROPERTY YEAR BUILT/RENO. # OF UNITS AVERAGE SF MARKET RENT MARKET RENT/SF Pohlig Box Factory (2BR/2.5BA PH) 1853/2004 1 2,338 $2,725 $1.17 Lucky Strike Lofts 1955/2008 59 1,277 $1,829 $1.43 Shockoe Center (2BD/2.5BA) 1853/2001 1 1,256 $1,800 $1.43 Cameron Kinney (2BD/2BA) 1884/1991 50 1,321 $1,777 $1.35 The Lofts at Canal Walk 1917/2012 67 1,005 $1,731 $1.72 American Cigar (2BD/2BA) 1914/2000 42 1,331 $1,674 $1.26 The Lofts at Shiplock Watch (2BD/2BA) 1840/2013 17 980 $1,672 $1.71 Garber Gables 1940/2018 25 985 $1,628 $1.65 Pohlig Box Factory (2BR/2.5BA) 1853/2004 3 1,598 $1,615 $1.01 Fording Flats 1928 20 988 $1,609 $1.63 Old Stone Row 2011 40 915 $1,586 $1.73 Consolidated Carolina 1926 33 1,092 $1,585 $1.45 American Tobacco Center 2005 87 1,100 $1,563 $1.32 Shockoe Center (2BD/1BA) 1853/2001 2 967 $1,560 $1.61 Terrace 202 2013 14 899 $1,555 $1.73 The Lofts at Shipock Watch (2BD/2.5BA) 1840/2013 2 967 $1,560 $1.61 American Cigar (2BD/1.5BA) 1914/2000 5 1,020 $1,513 $1.48 Superior Warehouse (2BR/2BA) 1852/2004 5 1,074 $1,499 $1.38 Cameron Kinney (2BD/1BA) 1884/1991 19 996 $1,463 $1.47 Main 2323 1917/2016 10 782 $1,446 $1.85 Raven Place (2BR/2BA) 1910/2008 3 1,111 $1,386 $1.25 Superior Warehouse (2BR/1BA) 1852/2004 5 919 $1,382 $1.45 Pohlig Box Factory (2BR/2BA) 1853/2004 13 1,074 $1,366 $1.27 Bobber Flats 1900/2010 9 861 $1,356 $1.57 Raven Place (2BR/1BA) 1910/2008 2 832 $1,235 $1.48 Pohlig Box Factory (2BR/1BA) 1853/2004 3 844 $1,215 $1.44 AVERAGE 801 $1,179 $1.47

RENT RANKINGS − FOUR BEDROOM UNITS

PROPERTY YEAR BUILT/RENO. # OF UNITS AVERAGE SF MARKET RENT MARKET RENT/SF Pohlig Box Factory (4BR/2.5BA) 1853/2004 1 4,043 $3,100 $0.77 AVERAGE 4,043 $3,100 $0.77

50 Rent Comparable Analysis Rent Comparable Analysis 51 POHLIG BOX FACTORY

Property POHLIG BOX FACTORY SUPERIOR WAREHOUSE LUCKY STRIKE LOFTS

Address 2411 E Franklin Street, 2401 E Franklin Street, 2600 E Cary Street, Richmond VA 23223 Richmond VA 23223 Richmond VA 23223

Total Units 65 28 131

Stories 4 4 6

Year Built 1853 1852 1955

Renovation Year 2004 2004 2008

Renovation Premium N/A N/A N/A

Management Self Managed - Pohlig Box Factory Self Managed - Superior Warehouse Brookfield Properties

Average Unit Size 957 874 1,227

Avg. Monthly Price/Unit $1,178 $1,241 $1,829

Avg. Monthly Price/Unit/SF $1.29 $1.42 $1.43

Admin Fee N/A N/A N/A

Application Fee $30/applicant $30/applicant $50/applicant

All utilities (including basic cable and Utilities No utilities included in rent Recycling included in rent Internet) included in rent

Parking 1 assigned garage space included in Off street parking available Surface parking available at $65/space rent.

Concessions None None None

$250 pet fee, $25/mo recurring pet $300 pet fee, no recurring pet charge $300 pet fee, no recurring pet charge Pets charge

Exposed brick walls, stainless steel Exposed brick walls, white-on-white Exposed brick walls, tainless steel appliances, granite countertops, appliances, hardwood floors in entry appliances, granite countertops, vaulted ceilings in select units, Interior Scope foyer, wall-to-wall berber carpeting in hardwood floors, high ceilings, updated hardwood floors, oak cabinetry, living areas, concierge service, 24-hour kitchen hardware, large windows, concierge service, 24-hour maintenance ceiling fans maintenance*

Washer/Dryer In-Unit Full-Size Washer/Dryer In-Unit Full-Size Washer/Dryer In-Unit Full-Size Washer/Dryer

52 Rent Comparable Analysis *In select units SHOCKOE CENTER CAMERON KINNEY THE LOFTS AT CANAL WALK AMERICAN CIGAR

1900 E Franklin Street, 2400 E. Cary Street, 1915 Main Street E, 2300 E Cary Street, Richmond, VA 23223 Richmond, VA 23223 Richmond, VA 23223 Richmond, VA 23223

46 259 200 165

4 6 4 6

1853 1884 1900 1914

2001 1991 2008 2000

N/A N/A N/A N/A

Matrix Residential Brookfield Properties Main Street Realty Brookfield Properties

743 1,019 1,005 984

$1,212 $1,354 $1,731 $1,285

$1.63 $1.33 $1.72 $1.31

N/A $400 N/A $400

$50/applicant $50/applicant $50/applicant $50/applicant

All utilities (including basic cable and No utilities included in rent Recycling included in rent Recycling included in rent Internet) included in rent

Assigned surface lot parking available Surfacing lot parking available at $70/ Unassigned garage parking from $50 to 1 surface lot space included, additional from $45 per space to $140/garage space, garage parking for $100/space $100/space parking available at $75/space space.

Reduced move-in fees None None None

$300 fee for one pet, $500 fee for two $400 pet fee, $25/mo recurring pet $350 pet fee, $25/mo recurring pet $400 pet fee, $25/mo recurring pet pets, $10/mo recurring pet charge charge charge charge

Exposed brick walls, stainless steel Exposed brick walls, stainless steel appliances, granite countertops, Exposed brick walls, white-on-white Exposed duct work, white-on-white appliances, granite countertops, kitchen islands, polished floors on 1st appliances, hardwood floors, loft-style appliances, laminate countertops, oak hardwood floors, updated ktichen level units, hardwood floors in upper apartments, walk-in closets cabinetry, wall-to-wall carpeting hardware, ceilign fans units, updated kitchen hardware, large windows, ceiling fans

In-Unit Full-Size Washer/Dryer In-Unit Full-Size Washer/Dryer In-Unit Full-Size Washer/Dryer In-Unit Full-Size Washer/Dryer

*In select units Rent Comparable Analysis 53 POHLIG BOX FACTORY

Property THE LOFTS AT SHIPLOCK WATCH GARBER GABLES FORDING FLATS

Address 2823 E. Main St 2201 E. Franklin Street, 2213 E Franklin Street, Richmond, VA 23223 Richmond, VA 23223 Richmond, VA 23223

Total Units 51 59 80

Stories 3 4 2

Year Built 1840 2018 1928

Renovation Year 2013 N/A 2018

Renovation Premium N/A N/A N/A

Management Main Street Properties Legend Property Group Legend Property Group

Average Unit Size 768 847 757

Avg. Monthly Price/Unit $1,353 $1,408 $1,326

Avg. Monthly Price/Unit/SF $1.76 $1.66 $1.75

Admin Fee N/A N/A N/A

Application Fee $50/applicant $50/applicant $50/applicant

Utilities All utilities included in rent All utilities included in rent All utilities included in rent

Parking Surface lot parking available, 2 spaces Surface lot parking available for $85/ Unassigned garage parking available at per unit mo, garage parking for $100/mo. $75/space

Concessions None None None

$350 pet fee, $25/mo recurring pet $300 pet fee, no recurring pet charge $300 pet fee, no recurring pet charge Pets charge

Exposed brick walls, stainless steel Stainless steel appliances, hardwood Stainless steel appliances, granite appliances, granite countertops, floors, glass-top range, granite countertops, designer cabinetry, subway Interior Scope hardwood floors, high ceilings, countertops, loft-style apartments, backsplash, large windows, pendant updated kitchen hardware, large elevatored, updated kitchen hardware lighting, ceiling fans windows, ceiling fans

Washer/Dryer In-Unit Full-Size Washer/Dryer In-Unit Full-Size Washer/Dryer In-Unit Full-Size Washer/Dryer

*In select units 54 Rent Comparable Analysis OLD STONE ROW CONSOLIDATED CAROLINA AMERICAN TOBACCO CENTER TERRACE 202

2005 E Franklin Street, 2300 E Cary Street, 113-121 N 20th Street, 202 N 20th Street, Richmond, VA 23223 Richmond, VA 23223 Richmond, VA 23223 Richmond, VA 23223

96 166 153 57

5 6 5 4

2011 1926 1902 2013

N/A 2004 2005 N/A

N/A N/A N/A N/A

Legend Property Group Brookfield Properties Matrix Residential Legend Property Group

725 957 942 687

$1,281 $1,382 $1,326 $1,326

$1.77 $1.44 $1.41 $1.93

N/A $400 $150 N/A

$50/applicant $50/applicant $50/applicant $50/applicant

Trash removal and basic cable included Trash removal and basic cable included All utilities included in rent All utilities included in rent in rent in rent

Unassigned garage parking available 1 surface space included in rent, 1 surface space included in rent, Unassigned garage parking available at at $75/space covered parking available covered parking available $75/space

None None None None

$350 pet fee, $10/mo recurring pet $350 pet fee, $10/mo recurring pet $300 pet fee, no recurring pet charge $300 pet fee, no recurring pet charge charge charge

Exposed brick walls, stainless steel Exposed brick walls, stainless steel Stainless steel appliances, granite Stainless steel appliances, granite appliances, hardwood floors in kitchen, appliances, hardwood floors in kitchen, countertops, hardwood floors, updated countertops, designer cabinetry, wall-to-wall carpeting in living areas, wall-to-wall carpeting in living areas, kitchen hardware, large windows, pendant lighting, updated kitchen granite countertops, updated kitchen granite countertops, updated kitchen ceiling fans hardware, ceiling fans hardware hardware

In-Unit Full-Size Washer/Dryer In-Unit Full-Size Washer/Dryer In-Unit Full-Size Washer/Dryer In-Unit Full-Size Washer/Dryer

*In select units Rent Comparable Analysis 55 POHLIG BOX FACTORY

Property MAIN 2323 RAVEN PLACE BOBBER FLATS

Address 2323 E. Main Street, 1710 E Broad Street, 2001 Franklin Street East, Richmond, VA 23223 Richmond, VA 23223 Richmond, VA 23223

Total Units 71 65 40

Stories 4 4 2

Year Built 2013 1910 1900

Renovation Year N/A 2008 2009

Renovation Premium N/A N/A N/A

Management Property Results Dodson Property Mgmt Legend Property Group

Average Unit Size 617 738 640

Avg. Monthly Price/Unit $1,178 $1,047 $1,085

Avg. Monthly Price/Unit/SF $1.91 $1.42 $1.70

Admin Fee N/A $200 N/A

Application Fee $75/applicant $50/applicant $30/applicant Water, trash removal, high-speed Water, high-speed internet access, Utilities All utilities included in rent internet access, basic cable and sewer basic cable and recycling included in included in rent rent Parking Assigned surface lot parking at $75/ Off-street parking mo., underground garage parking at 1 assigned surface lot space included $100/mo.

Concessions None None None

$350 pet fee, $25/mo recurring pet $100 pet fee, $35/mo recurring pet $300 pet fee, $200 deposit, no Pets charge charge recurring pet charge

Stainless steel appliances, hardwood floors, glass-top range, granite Stainless steel appliances, Bamboo Stainless steel appliances, hardwood Interior Scope countertops, elevator, controlled floors/concrete floors, ceiling fans, oak floors, exposed brick, ceiling fans, oak access entry, updated kitchen cabinetry, granite countertops cabinetry, granite countertops hardware

In-unit W/D in select units, on-site In-Unit Full-Size Washer/Dryer In-Unit Full-Size Washer/Dryer Washer/Dryer laundry facility *In select units 56 Rent Comparable Analysis Rent Comparable Analysis 57 POHLIG BOX FACTORY

POHLIG BOX FACTORY 2411 E. Franklin St Richmond, VA

Units:65 Year Built/Renovated: 1853/2004

MANAGEMENT: Self Managed

COMMUNITY AMENITIES Secured Access Building, Elevator Lobby, Coffee Bar in Lobby, State- of-the-Art Fitness Center, Lavish Courtyard Area, Garage Parking, 24-Hour Building Maintenance, Complimentary Concierge Service, Located Next Door to Farm Fresh, CVS Pharmacy and Easy Access to Major Interstates

UNIT AMENITIES Luxurious Open Concept Layouts, 65 Unique Floorplans, Spectacular City Views, High Ceilings, Fully Applianced Spacious Kitchens with Granite Countertops and Stainless Steel Appliances, Exposed Brick Accent Walls, Beams and Ductwork, Original Hardwood Floors in Living Areas and Bedrooms*, Stained Polished Concrete Floors and/or Berber Carpeting, Custom Tract Lighting, Ceiling Fans, In Unit Full-Size Washer and Dryers, Plantation Blinds

CONSOLIDATED UNIT MIX UNIT TYPE # UNITS %TTL SF IN-PLACE RENT/UNIT AVG MARKET RENT/SF Studio 3 4.3% 611 $943 $1.54 1BD/1BA 41 58.6% 727 $1,016 $1.40 2BD/1BA 3 4.3% 844 $1,215 $1.44 2BD/2BA 13 18.6% 1,074 $1,366 $1.27 2BD/2.5BA 3 4.3% 1,598 $1,615 $1.01 2BD/2.5BA Penthouse 1 1.4% 2,338 $2,725 $1.17 4BD/2.5BA Penthouse 1 1.4% 4,043 $3,100 $0.77 Commercial Space 5 7.1% 1,539 $1,525 $0.99 TOTAL/AVG 70 100.0% 957 $1,203 $1.26

58 Rent Comparable Analysis SUPERIOR WAREHOUSE 2401 E. Franklin St Richmond, VA

Units: 28 Year Built/Renovated: 1852/2004

MANAGEMENT: Self Managed

COMMUNITY AMENITIES Secured Access Building, Elevator Lobby, Off-Street Parking Available, 24-Hour Building Maintenance, Complimentary Concierge Service, Located Next Door to Farm Fresh, CVS Pharmacy and Easy Access to Major Interstates

UNIT AMENITIES Luxurious Open Concept Layouts, Spectacular City Views, High Ceilings, Fully Applianced Spacious Kitchens with Laminate Countertops and White-on-White Appliances, Ceramic Tile Kitchen Floors, Exposed Brick Accent Walls, Beams and Ductwork, Hardwood Flooring in Entry Foyers, Berber Carpeting and/or Laminate Flooring in Living Areas and Bedrooms, Custom Tract Lighting, Ceiling Fans, In Unit High Efficiency LG Washer and Dryer Combo Units, Plantation Blinds

*In select units

CONSOLIDATED UNIT MIX UNIT TYPE # UNITS %TTL SF IN-PLACE RENT/UNIT AVG MARKET RENT/SF 1BD/1BA 18 64.3% 803 $1,130 $1.41 2BD/1BA 5 17.9% 919 $1,382 $1.50 2BD/2BA 5 17.9% 1,084 $1,499 $1.38 TOTAL/AVG 28 100.0% 874 $1,241 $1.42

Rent Comparable Analysis 59 POHLIG BOX FACTORY

LUCKY STRIKE LOFTS 2600 E Cary Street Richmond, VA

Units: 131 Year Built: 1955/2008

MANAGEMENT: Brookfield Properties

COMMUNITY AMENITIES 24-Hour Courtesy Patrol, 24-Hour Maintenance, 3 Fitness Centers, Barbecue and Picnic Patios, Canal and River Walk in Front of Community, Community Room with Large Screen TV, Community Spaces with Wi-Fi, Conference and Boardroom Facilities, Controlled Building Access, Fitness on Demand Virtual Training Center, Full- Service Coffee Bar, On-Site Dry Cleaning Delivery, On-Site Parking, On-Site Restaurants, Theater Room, Two Swimming Pools with Spas and Sun Decks

UNIT AMENITIES Stainless Steel Appliances, Granite Countertops, Ceiling Fans, Carpet in Bedrooms, Ceramic Tile in Baths, Dual Pane Windows for Sound and Weather Insulation, Exposed Brick Walls, Wood Beams and Metal Ductwork, Hardwood Floors in Kitchen and Living Areas, In Unit Washer and Dryer, Oversized Closets, Open Kitchens with Counters/ Islands, Mini-Blinds, River and City Views Available, 14-18 Foot Ceilings, Pendant and Track Lighting, Wired for High Speed Internet and Cable

OCCUPANCY: 96.2%

CONSOLIDATED UNIT MIX UNIT TYPE # UNITS %TTL SF AVG MARKET RENT/UNIT AVG MARKET RENT/SF 1BR/1BA 67 51.1% 858 $1,388 $1.62 1BR/1.5BA 5 3,8% 957 $1,434 $1.50 2BR/2BA 59 45.0% 1,277 $1,829 $1.43 TOTAL/AVG 131 100.0% 1,050 $1,588 $1.51

60 Rent Comparable Analysis SHOCKOE CENTER 1900 E. Franklin St Richmond, VA

Units: 46 Year Built/Renovated: 1853/2001

MANAGEMENT: Matrix Residential

COMMUNITY AMENITIES All utilities included in rent, Rooftop swimming pool and sundeck, 24-Hour cardio center, Strength training facility, Cyber Cafe, Controlled Access Building, Enclosed corridors with elevators, Covered parking available, Off-street parking provided, Study space in common areas, valet trash services, Outdoor lounge with fire pit

UNIT AMENITIES White-on-white appliances, hardwood floors*, Full-size washer/dryer in each unit, Exposed brick*, Loft-style apartments, Walk-in closets*, Historical building with unique floor plans, Original architectural elements, Pet friendly

OCCUPANCY: 97.8%

*In select units

CONSOLIDATED UNIT MIX UNIT TYPE # UNITS %TTL SF AVG MARKET RENT/UNIT AVG MARKET RENT/SF 1BD/1BA 29 63.0% 716 $1,308 $1.83 1BD/1.5BA 14 30.4% 730 $920 $1.26 2BD/1BA 2 4.3% 967 $1,560 $1.61 2BD/2.5BA 1 2.2% 1,256 $1,800 $1.43 TOTAL/AVG 46 100.0% 743 $1,212 $1.63

Rent Comparable Analysis 61 POHLIG BOX FACTORY

CAMERON KINNEY 2400 E. Cary St, Richmond, VA

Units: 259 Year Built: 1884/1991

MANAGEMENT: Brookfield Properties

COMMUNITY AMENITIES Clubhouse, Two Outdoor Pools with Spa and Sun decks, Three fitness center, Outdoor Grilling Area, Theater Room, Garage Resident and Guest Parking, Controlled Building access, Complimentary, On-Site Maintenance, Dry Cleaning Service, On-Site Restaurants

UNIT AMENITIES Stainless Steel Appliances, Granite Countertops, Hardwood Floors, Exposed Brick Walls, Modern Kitchen Hardware, Full Size Washer and Dryers, Ceiling Fans, Double Pane Windows, Spacious Closets

OCCUPANCY: 94.6%

CONSOLIDATED UNIT MIX UNIT TYPE # UNITS %TTL SF AVG MARKET RENT/UNIT AVG MARKET RENT/SF 1BR/1BA 170 65.6% 876 $1,149 $1.31 2BR/1BA 19 7.3% 996 $1,463 $1.47 2BR/2BA 50 19.3% 1,321 $1,777 $1.35 3BR/2BA 20 7.7% 1,500 $1,932 $1.29 TOTAL/AVG 259 92.3% 1,019 $1,354 $1.33

62 Rent Comparable Analysis THE LOFTS AT CANAL WALK 1915 Main Street East Richmond, VA

Units: 200 Year Built: 1900/2008

MANAGEMENT: Main Street Realty

COMMUNITY AMENITIES Clubhouse, BBQ/Picnic Area, Bike Racks, Package Service, On-Site Maintenance, Door-to-Door Trash Pickup, Dry Cleaning Service, Maid Service, Planned Social Activities, Guest Suite, Pet Play Area, Car Charging Station, Controlled Access Building, Lounge Area, Corporate Suites, Fitness Center, Swimming Pool

UNIT AMENITIES Stainless Steel Appliances, Granite Countertops, Hardwood Floors, Exposed Brick Walls and Ductwork, Modern Kitchen Cabinetry, Full Size Washer and Dryers, Pendant Lighting, Kitchen Backsplashes, Fireplaces in Select Units, Oversized Windows with Blinds

OCCUPANCY: 92.5%

CONSOLIDATED UNIT MIX UNIT TYPE # UNITS %TTL SF AVG MARKET RENT/UNIT AVG MARKET RENT/SF Studio 66 33.0% 497 $950 $1.91 1BR/1BA 67 33.5% 901 $1,418 $1.57 2BR/2BA 67 33.5% 1,005 $1,731 $1.72 TOTAL/AVG 200 100.0% 803 $1,368 $1.71

Rent Comparable Analysis 63 POHLIG BOX FACTORY

AMERICAN CIGAR 2300 E Cary St Richmond, VA

Units: 165 Year Built/Renovated: 1914/2000

MANAGEMENT: Brookfield Properties

UNIT AMENITIES 14’ Ceilings, Stainless steel appliances, Open Kitchen with Counter Seating Area, Exposed brick Walls, Hardwood ceilings, Full-Size washer/dryer in each unit, Fireplace, High ceilings, Large closets, Ceiling fans, Granite Countertops, Oversized Windows, Walk-in Closets,Handicap Accessible

OCCUPANCY: 94.8%

CONSOLIDATED UNIT MIX UNIT TYPE # UNITS %TTL SF AVG MARKET RENT/UNIT AVG MARKET RENT/SF 1BD/1BA 110 66.7% 842 $1,109 $1.32 1BD/1.5BA 7 4.2% 1,000 $1,387 $1.39 2BD/1.5BA 5 3.0% 1,020 $1,513 $1.48 2BD/2BA 42 25.5% 1,331 $1,674 $1.26 3BD/2BA 1 0.6% 1,735 $2,382 $1.37 TOTAL/AVG 165 100.0% 984 $1,285 $1.31

64 Rent Comparable Analysis THE LOFTS AT SHIPLOCK WATCH 2823 E. Main St Richmond, VA

Units: 51 Year Built/Renovated: 1840/2013

MANAGEMENT: Main Street Realty

COMMUNITY AMENITIES Utilities included in rent, Free gym membership, Infinity swimming pool, Pet friendly, Controlled access, Bike racks, Poolside Wi-Fi, Valet trash, Smoke free environment

UNIT AMENITIES Stainless steel appliances, Built-in iPod docking station, Exposed brick/beams, Hardwood ceilings, Full-Size washer/dryer in each unit, Fireplace, High ceilings, Large closets, Ceiling fans, Granite countertops, Window coverings, Wheelchair access

OCCUPANCY: 94.1%

CONSOLIDATED UNIT MIX UNIT TYPE # UNITS %TTL SF AVG MARKET RENT/UNIT AVG MARKET RENT/SF 1BD/1BA 30 58.8% 627 $1,171 $1.87 1BD/1.5BA 2 3.9% 765 $1,209 $1.58 2BD/2BA 17 33.3% 980 $1,672 $1.71 2BD/2.5BA 2 3.9% 1,084 $1,524 $1.41 TOTAL/AVG 51 100.0% 768 $1,353 $1.76

Rent Comparable Analysis 65 POHLIG BOX FACTORY

GARBER GABLES 2201 E. Franklin St Richmond, VA

Units: 59 Year Built: 2018

MANAGEMENT: Legend Property Group

COMMUNITY AMENITIES All utilities included in rent, Sparkling swimming pool, 24-Hour fitness center, Fire pit, Controlled access entry, Bike Racks, Surface level parking, Garage parking, Elevator access

UNIT AMENITIES Stainless steel appliances, Glass top electric stove, Hardwood floors, Full-size washer/dryer in each unit, Pet friendly, Loft-style apartments, Granite countertops, Ceiling fans, Updated cabinetry, Open concept floorplans, Updated finishes, Large windows

OCCUPANCY: 98.3%

CONSOLIDATED UNIT MIX UNIT TYPE # UNITS %TTL SF AVG MARKET RENT/UNIT AVG MARKET RENT/SF 1BD/1BA 30 50.8% 678 $1,150 $1.70 2BD/1BA 25 42.4% 985 $1,628 $1.65 3BD/2BA 4 6.8% 1,253 $1,987 $1.59 TOTAL/AVG 59 100.0% 847 $1,409 $1.66

66 Rent Comparable Analysis FORDING FLATS 2213 E Franklin St Richmond, VA

Units: 80 Year Built/Renovated: 1928/2018

MANAGEMENT: Legend Property Group

COMMUNITY AMENITIES All utilities included in rent, 24-Hour fitness center, Swimming pool, Fire pits, On-site management, Additional storage available, Garage and Surface level Parking Available, 24-Hour maintenance, Bike racks, Controlled Access Entry

UNIT AMENITIES High Ceilings, Stainless steel appliances, Hardwood floor or Polished Concrete Flooring, Full-Size washer/dryer in unit, Large windows

OCCUPANCY: 97.5%

*In select units

CONSOLIDATED UNIT MIX UNIT TYPE # UNITS %TTL SF AVG MARKET RENT/UNIT AVG MARKET RENT/SF 1BD/1BA 58 72.5% 657 $1,202 $1.83 2BD/2BA 20 25.0% 988 $1,609 $1.63 3BD/2BA 2 2.5% 1,339 $2,077 $1.55 TOTAL/AVG 80 100.0% 757 $1,326 $1.75

Rent Comparable Analysis 67 POHLIG BOX FACTORY

OLD STONE ROW 2005 E Franklin St Richmond, VA

Units: 96 Year Built: 2011

MANAGEMENT: Legend Property Group

COMMUNITY AMENITIES Controlled access entry, Access to Shockoe Valley outdoor swimming pool, Access to fire pit, deck and grilling area, Pet Friendly, Off-street parking,24-Hour fitness center, Utilities included in the rent, Off-street parking

UNIT AMENITIES Stainless steel appliances, Stylish flooring, Full-size washer/dryer in each unit, Gouremnt Kitchen with Granite countertops, Ceiling fans, Designer-selected plumbing fixtures, Private balcony, Tile flooring in bathroom

OCCUPANCY: 97.9%

CONSOLIDATED UNIT MIX UNIT TYPE # UNITS %TTL SF AVG MARKET RENT/UNIT AVG MARKET RENT/SF 1BD/1BA 56 58.3% 590 $1,063 $1.80 2BD/2BA 40 41.7% 915 $1,586 $1.73 TOTAL/AVG 96 100.0% 725 $1,281 $1.77

68 Rent Comparable Analysis CONSOLIDATED CAROLINA 2300 E Cary St Richmond, VA

Units: 166 Year Built/Renovated: 1926/2004

MANAGEMENT: Brookfield Properties

UNIT AMENITIES 14’ Ceilings, Exposed brick walls with wood beams, Stylish pendant and track lighting, Stainless steel appliances, Hardwood floors, Oversized windows with mini-blinds, Full-Size washer/dryer in unit, Walk-in closets, River and city views

OCCUPANCY: 92.8%

CONSOLIDATED UNIT MIX UNIT TYPE # UNITS %TTL SF AVG MARKET RENT/UNIT AVG MARKET RENT/SF 1BD/1BA 133 80.1% 923 $1,332 $1.44 2BD/2BA 33 19.9% 1,092 $1,585 $1.45 TOTAL/AVG 166 100.0% 957 $1,382 $1.45

Rent Comparable Analysis 69 POHLIG BOX FACTORY

AMERICAN TOBACCO CENTER 113-121 N 20th St Richmond, VA

Units: 153 Year Built/Renovated: 1902/2005

MANAGEMENT: Matrix Residential

COMMUNITY AMENITIES Clubroom, 2,000 SF 24-Hour Cardio Center, 24-Hour Surveillance System, Conference Room, Covered Parking, Cyber Café and Coffee Bar, Door-to-Door Trash Pick-Up, On-Site Management, On-Site Maintenance, Guest Suite Available, Rooftop Swimming Pool and Sundeck, Resident Mezzanine, Views of Downtown Richmond, Study Space in Common Areas, Vending Services

UNIT AMENITIES Stainless Steel Appliances, Granite Countertops, Hardwood Floors, Fireplaces, Expansive Windows, Built-in Bookshelves, Breakfast Bars, Ceramic Tile Floors in Bath, Private Decks/Community Mezzanine, Premium Dish Network Included, High Speed Internet Included, Full- Size Washer & Dryers

OCCUPANCY: 96.1%

CONSOLIDATED UNIT MIX UNIT TYPE # UNITS %TTL SF AVG MARKET RENT/UNIT AVG MARKET RENT/SF 1BR/1BA 64 41.8% 719 $986 $1.37 2BD/2BA 87 56.9% 1,100 $1,563 $1.42 3BD/2BA 2 1.3% 1,209 $1,875 $1.55 TOTAL/AVG 153 100.0% 942 $1,326 $1

70 Rent Comparable Analysis TERRACE 202 202 N 20th St Richmond, VA

Units: 57 Year Built: 2013

MANAGEMENT: Legend Property Group

COMMUNITY AMENITIES All utilities included in rent, Modern construction, Controlled access entry, Access to Shockoe Valley Heights Swimming pool, Fire pit, Grilling pavilion, Fitness Center, Package receiving services, Structure parking, 24-hour emergency maintenance

UNIT AMENITIES Stainless steel appliances, Gourment kitchens with Granite countertops, Stylish hardwood plank flooring, Designer-selected plumbing fixtures, Full size washer and dryer, Tile flooring in bathroom, OVersized windows, Private balconies

OCCUPANCY: 91.2%

CONSOLIDATED UNIT MIX UNIT TYPE # UNITS %TTL SF AVG MARKET RENT/UNIT AVG MARKET RENT/SF 1BD/1BA 40 70.2% 586 $1,198 $2.04 2BD/2BA 14 24.6% 899 $1,555 $1.73 2BD/2.5BA 3 5.3% 1,045 $1,958 $1.87 TOTAL/AVG 57 100.0% 687 $1,326 $1.93

Rent Comparable Analysis 71 POHLIG BOX FACTORY

MAIN 2323 2323 E. Main St Richmond, VA

Units: 71 Year Built: 2016

MANAGEMENT: Property Results, LLC

COMMUNITY AMENITIES Utilities included in rent, Sparkling swimming pool, 24-Hour fitness center, Valet trash service, Off-street parking, Community Room

OCCUPANCY: 98.6%

CONSOLIDATED UNIT MIX UNIT TYPE # UNITS %TTL SF AVG MARKET RENT/UNIT AVG MARKET RENT/SF Studio 18 25.4% 550 $970 $1.76 1BD/1BA 39 54.9% 600 $1,195 $1.99 1BD/1.5BA 4 5.6% 672 $1,272 $1.89 2BD/2BA 10 14.1% 782 $1,446 $1.85 TOTAL/AVG 71 100.0% 617 $1,178 $1.91

72 Rent Comparable Analysis RAVEN PLACE 1710 E Broad St Richmond, VA

Units: 65 Year Built/Renovated: 1910/2008

MANAGEMENT: Dodson Property Management

COMMUNITY AMENITIES 24-Hour fitness center, Controlled access entry, Additional storage available, Covered parking available, 24-Hour maintenance, Historic building

UNIT AMENITIES Stainless steel appliances, Hardwood floors*, Patio/Balcony, Full-Size washer/dryer in unit, High ceilings, Ceiling fans, City views

OCCUPANCY: 98.5%

*In select units

CONSOLIDATED UNIT MIX UNIT TYPE # UNITS %TTL SF AVG MARKET RENT/UNIT AVG MARKET RENT/SF 1BD/1BA 60 92.3% 716 $1,024 $1.43 2BD/1BA 2 3.1% 832 $1,235 $1.48 2BD/2BA 3 4.6% 1,111 $1,386 $1.25 TOTAL/AVG 65 100.0% 738 $1,047 $1.42

Rent Comparable Analysis 73 POHLIG BOX FACTORY

BOBBER FLATS 2001 E Franklin St, Richmond, VA

Units: 40 Year Built/Renovated: 1900/2009

MANAGEMENT: Legend Property Group

COMMUNITY AMENITIES Controlled access entry, Access to Shockoe Valley outdoor swimming pool, Access to fire pit, deck and grilling area, Off-street parking,24- Hour fitness center, Utilities included in the rent, Off-street parking, Historic building

UNIT AMENITIES Stainless steel appliances, Stylish flooring, Full-size washer/dryer in each unit, Gouremnt Kitchen with Granite countertops, Designer- selected plumbing fixtures, Private balcony, Polished concrete floors

OCCUPANCY: 100.0%

*In select units

CONSOLIDATED UNIT MIX UNIT TYPE # UNITS %TTL SF AVG MARKET RENT/UNIT AVG MARKET RENT/SF 1BD/1BA 21 70.0% 551 $967 $1.75 2BD/2BA 3 10.0% 788 $1,327 $1.68 TOTAL/AVG 30 100.0% 556 $983 $1.77

74 Rent Comparable Analysis Rent Comparable Analysis 75 POHLIG BOX FACTORY

76 FINANCIAL ANALYSIS

77 POHLIG BOX FACTORY

HISTORICALS

May '19 May '19 May '19 Year 1 Starting T12 Inc Ann T3 Inc Ann T1 Inc Ann 12/01/19 INCOME Totals % of GSR Totals % of GSR Totals % of GSR Totals % of GSR

Net Rental Income $1,326,979 100.00% $1,339,676 100.00% $1,356,540 100.00% $1,473,644 100.00%

Plus: RUBS Income 28,461 306 25,237 271 25,103 270 54,230 583 Plus: Pet Income 2,225 24 2,900 31 1,500 16 14,648 158 Plus: Parking Income 31,406 338 32,460 349 31,500 339 32,348 348 Plus: Other Income 6,074 65 2,733 29 2,284 25 6,256 67 Plus: Storage Income 8,180 88 8,280 89 8,280 89 8,425 91 Unit Upgrade Income ------61,090 657 Total Other Income $76,346 $821 $71,610 $770 $68,667 $738 $176,997 $1,903

Effective Gross Income $1,403,325 $15,090 $1,411,286 $15,175 $1,425,207 $15,325 $1,650,641 $17,749

EXPENSES Totals Per Unit Totals Per Unit Totals Per Unit Buyer's Exp Per Unit

Repairs and Maintenance 107,229 1,153 107,229 1,153 107,229 1,153 69,750 750 Payroll 109,020 1,172 109,020 1,172 109,020 1,172 110,000 1,183 Administrative 15,701 169 15,701 169 15,701 169 18,600 200 Marketing 17,692 190 17,692 190 17,692 190 18,600 200 Contract Services 11,470 123 11,470 123 11,470 123 11,700 126 Turnover 6,904 74 6,904 74 6,904 74 18,600 200 Utilities 143,853 1,547 143,853 1,547 143,853 1,547 146,730 1,578 Total Variable Expenses $411,869 $4,429 $411,869 $4,429 $411,869 $4,429 $393,980 $4,236 Taxes 146,538 1,576 146,538 1,576 146,538 1,576 168,300 1,810 Insurance 35,214 379 35,214 379 35,214 379 23,250 250 Management Fee 90,419 6.44% 90,419 6.41% 90,419 6.34% 49,519 3.00% Total Operating Expenses $684,040 $7,355 $684,040 $7,355 $684,040 $7,355 $635,049 $6,828 Capital Reserves 27,900 300 27,900 300 27,900 300 27,900 300 Total Expenses $711,940 $7,655 $711,940 $7,655 $711,940 $7,655 $662,949 $7,128

NET OPERATING INCOME $691,385 $7,434 $699,346 $7,520 $713,267 $7,670 $987,692 $10,620

78 Financial Analysis UNIT UPGRADE ANALYSIS

Trailing 12 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7

Market Rent Before Upgrades: $1,326,979 $1,473,644 $1,547,326 $1,593,746 $1,641,558 $1,690,805 $1,741,529 $1,793,775 Annual Upgrade Revenue: $61,090 $181,947 $236,322 $243,411 $250,714 $258,235 $265,982 Market Rent Total: $1,326,979 $1,534,733 $1,729,273 $1,830,067 $1,884,969 $1,941,518 $1,999,764 $2,059,757

Trailing 12 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Cumulative Upgrade Revenue: $61,090 $243,037 $479,358 $722,770 $973,483 $1,231,718 $1,497,700 Total Upgrade Program Cost: $192,240 $372,465 $372,465 $372,465 $372,465 $372,465 $372,465 110% 116% 119% 123% 126% 130% 134% Trailing 12 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Tier 1 Units Upgraded: 48 93 93 93 93 93 93 Tier 2 Units Upgraded: 0 0 0 0 0 0 0 Units Already Upgraded: 0 0 0 0 0 0 0 0 Total Units Upgraded: 0 48 93 93 93 93 93 93

Avg. Market Rent per Unit: $1,189 $1,375 $1,550 $1,640 $1,689 $1,740 $1,792 $1,846 Additional Upgrade Vacancy: 4.3% 4.0% 0.0% 0.0% 0.0% 0.0% 0.0% Annual Upgrade Capital Expense: $192,240 $180,225 $0 $0 $0 $0 $0

Trailing 12 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Rent Growth Before Upgrades: 10.0% 5.0% 3.0% 3.0% 3.0% 3.0% 3.0% Rent Growth After Upgrades: 15.7% 12.7% 5.8% 3.0% 3.0% 3.0% 3.0%

Total Units: 93 Year 1 Total Units Upgraded: 48 Year 6 Total Units Upgraded: Units Already Upgraded: 0 Year 2 Total Units Upgraded: 45 Year 7 Total Units Upgraded: Annual Unit Turnover: 55% Year 3 Total Units Upgraded: 0 Year 8 Total Units Upgraded: Maximum Unit Upgrades Started Monthly: 4 Year 4 Total Units Upgraded: 0 Year 9 Total Units Upgraded: Minimum Unit Upgrades Started Monthly: 4 Year 5 Total Units Upgraded: 0 Year 10 Total Units Upgraded: Starting Month: Month 1 UNIT UPGRADE TIER 1

Remaining Units Upgraded: 100% Year 1 Units Upgraded: 48 Year 6 Units Upgraded: 0 Upgrade Capex per Unit: $4,005 Year 2 Units Upgraded: 45 Year 7 Units Upgraded: 0 Add'l Monthly Rent per Unit: $178 Year 3 Units Upgraded: 0 Year 8 Units Upgraded: 0 Investment Payback: 1.9 Years Year 4 Units Upgraded: 0 Year 9 Units Upgraded: 0 Add'l Turnover Time: 1 Month Year 5 Units Upgraded: 0 Year 10 Units Upgraded: 0

Trailing 12 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Annual Upgrade Revenue: $61,090 $181,947 $236,322 $243,411 $250,714 $258,235 $265,982 Cumulative Upgrade Revenue: $61,090 $243,037 $479,358 $722,770 $973,483 $1,231,718 $1,497,700 Annual Upgrade Capital Expense: $192,240 $180,225 $0 $0 $0 $0 $0 Total Upgrade Program Cost: $192,240 $372,465 $372,465 $372,465 $372,465 $372,465 $372,465

Financial Analysis 79 POHLIG BOX FACTORY

FINANCIAL ASSUMPTIONS

Net Rental Income Net Rental Income is assumed to be $1,473,644 in Year 1, based on the Property’s current market rents, grown by 10.00% in Year 1, equating to an average monthly rent of $1,320 per month/unit, or $1.47 per SF. Net Rental Income includes the commercial space income that is detailed in the table below. Rent growth in Year 2 scales down to 5.00%, and normalizes to 3.00% in Years 3 through 8.

RETAIL TENANT LOCATION LEASE LEASE SIZE MARKET IN-PLACE PSF MISCELLANEOUS TOTAL BEGIN END (SF) RENT RENT CHARGES CHARGES Allan Martin Retail 2 7/20/18 6/30/19 1,512 $1,500 $1,700 $1.12 $0 $1,700 Hill Cleaners Retail 3A 12/1/04 9/30/19 1,197 $1,750 $1,875 $1.57 $0 $1,875 Shelter Salon - Retail 3B 7/1/15 6/30/19 150 $450 $500 $3.33 $0 $500 Office Vacant Retail 4 3,711 $3,500 $3,500 $0.94 $0 $2,000 Shelter Salon - Retail 5 7/1/13 6/30/21 1,127 $500 $1,550 $1.38 $171 $1,721 Main TOTAL 7,697 $7,700 $9,125 $1.19 $171 $7,796

RUBS Income Rubs Income in Year 1 totals $54,230, or $583 per unit/year, which is based on the following assumptions:

RUBS INCOME Pohlig Box Factory RUBS Recovery during T-12 Period (Grown by 2.00%) $29,030 Superior Warehouse - RUBS Implementation In Year 1 Monthly Recovery $150 Total Yearly RUBS Income $25,200 TOTAL $54,230

Pet Income Parking Income in Year 1 totals $32,348 or $348 per unit/year, which is based on the trailing-12 benchmark level grown by 3.00% per year throughout the projection period.

PET INCOME POTENTIAL PET FEE PET RENT TOTAL PET INCOME Yearly Pet Fee $300 $25 % of Tenants with Pets 35.0% 35.0% Annual Turnover 50.0% YEARLY PET INCOME $4,883 $9,765 $14,648

Other Income Other Income in Year 1 totals $6,256, or $67 per unit/year, which is based on the trailing-12 benchmark level grown by 3.00% per year throughout the projection period. Other Income includes early termination fees, late fees, damage fees, NSF fees, transfer fees, and application fees. Storage Income Storage Income in Year 1 totals $8,425 or $91 per unit/year, which is based on the trailing-12 benchmark level grown by 3.00% per year throughout the projection period.

80 Financial Analysis Renovation Premium All of the 93 multifamily units are value-add candidates, with Poligh Box Factory representing a light value-add play, while Superior Warehouse represents a full-scope unit interior value-add play. The units are renovated over a two year period, at an average cost of $4,005 per unit and at an average renovation premium of $178 per unit. Please refer to Page XX of the OM for the discussion of renovation assumptions.

Operating Expenses Variable Expenses are based on a combination of the trailing-12 benchmark level and the average per unit expense levels of comparable product in the marketplace. Operating expenses are grown by 2.00% on an annual basis beginning in Year 2.

Repairs & Maintenance Repairs & Maintenance expenses in Year 1 total to $69,750, or alternatively $750 per unit, which is based on the average unit expense level for comparable product in the marketplace. Repairs & Maintenance expense is grown by 2.00% on an annual basis beginning in Year 2.

Payroll Expenses Payroll expenses are based on the following payroll schedule. Payroll expenses are grown by 2.00% on an annual basis beginning in Year 2.

PERSONNEL OVERVIEW STATUS SALARY Property Manager 1 Full-time $51,000 Maintenance Supervisor 1 Full-time $36,700 Housekeeper 1 Part-time ($13/hour, 15 to 20 hour average work week) $14,500 Groundskeeper 1 Part-time ($13/hour, 15 to 20 hour average work week) $7,800 TOTAL ANNUAL PAYROLL $110,000 Payroll is allocated between Pohlig Box Factory and Superior Warehouse

Real Estate Taxes The Properties are comprised of three separate real estate parcels, E000-0341-005, E000-0341-027 and E000-0341-028. The Real Estate Tax Assessment for the 2019 fiscal year is $12,105,000. The millage rate in Year 1 is based on the current City of Richmond VA’s millage rate of $1.20 per $100 of assessed value. The Year 1 Proforma real estate taxes totals $168,300, or alternatively $1,810 per unit, which is based on an assessment of 85% of the sales price.

PARCELS E000-0341-005, E000-0341-027, E000-0341-028 Year FY 2020 FY 2019 FY 2018 FY 2017 Total Assessed $12,957,000 $12,105,000 $12,105,000 $12,105,000 Tax Rate $1.20 $1.20 $1.20 $1.20 Real Estate Taxes $155,484 $145,260 $145,260 $145,260

Insurance Insurance expenses total $23,250 in Year 1, or $250 per unit/year. Insurance expenses in Year 1 are based on insurance expenses of comparable multifamily product in the local marketplace, grown by 2.00% per year beginning in Year 2.

Management F ees Management Fees are assumed to be 3.00% of Effective Gross Income throughout all projection years.

Replacement Reserves Replacement Reserves are projected to be $27,900 per year, or alternatively $300 per unit..

Financial Analysis 81 POHLIG BOX FACTORY

CASH FLOW PROJECTION YEARS 1-4

INCOME Year 1 Year 2 Year 3 Year 4

Net Rental Income $1,473,644 $1,547,326 $1,593,746 $1,641,558

Plus: RUBS Income 54,230 55,315 56,421 57,549 Plus: Pet Income 14,648 15,087 15,540 16,006 Plus: Parking Income 32,348 33,319 34,318 35,348 Plus: Other Income 6,256 6,444 6,637 6,836 Plus: Storage Income 8,425 8,678 8,939 9,207 Unit Upgrade Income 61,090 181,947 236,322 243,411 Total Other Income $176,997 $300,790 $358,176 $368,357 Effective Gross Income $1,650,641 $1,848,115 $1,951,922 $2,009,915

EXPENSES

Repairs and Maintenance 69,750 71,145 72,568 74,019 Payroll 110,000 112,200 114,444 116,733 Administrative 18,600 18,972 19,351 19,738 Marketing 18,600 18,972 19,351 19,738 Contract Services 11,700 11,934 12,172 12,416 Turnover 18,600 18,972 19,351 19,738 Utilities 146,730 149,665 152,658 155,711 Total Variable Expenses $393,980 $401,859 $409,897 $418,095

Taxes 168,300 172,508 176,820 181,241 Insurance 23,250 23,715 24,189 24,673 Management Fee 49,519 55,443 58,558 60,297 Total Operating Expenses $635,049 $653,525 $669,464 $684,306 Capital Reserves $27,900 $28,458 $29,027 $29,608 Total Expenses $662,949 $681,983 $698,491 $713,913

NET OPERATING INCOME $987,692 $1,166,132 $1,253,431 $1,296,002

ASSUMPTIONS Year 1 Year 2 Year 3 Year 4 Annualized GSR Growth Rates 10.00% 5.00% 3.00% 3.00% Less: (Gain)/Loss-to-Lease 0.00% 0.00% 0.00% 0.00% Less: Vacancy 0.00% 0.00% 0.00% 0.00% RUBS Income 2.00% 2.00% 2.00% 2.00% Expenses 2.00% 2.00% 2.00% 2.00% Management Fee 3.00% 3.00% 3.00% 3.00%

82 Financial Analysis CASH FLOW PROJECTION YEARS 5-8

INCOME Year 5 Year 6 Year 7 Year 8

Net Rental Income $1,690,805 $1,741,529 $1,793,775 $1,847,588

Plus: RUBS Income 58,700 59,874 61,072 62,293 Plus: Pet Income 16,486 16,980 17,490 18,015 Plus: Parking Income 36,408 37,500 38,625 39,784 Plus: Other Income 7,042 7,253 7,470 7,695 Plus: Storage Income 9,483 9,767 10,060 10,362 Unit Upgrade Income 250,714 258,235 265,982 273,961 Total Other Income $378,833 $389,610 $400,700 $412,110 Effective Gross Income $2,069,637 $2,131,139 $2,194,475 $2,259,698

EXPENSES

Repairs and Maintenance 75,500 77,010 78,550 80,121 Payroll 119,068 121,449 123,878 126,355 Administrative 20,133 20,536 20,947 21,366 Marketing 20,133 20,536 20,947 21,366 Contract Services 12,664 12,917 13,176 13,439 Turnover 20,133 20,536 20,947 21,366 Utilities 158,825 162,002 165,242 168,547 Total Variable Expenses $426,456 $434,986 $443,685 $452,559

Taxes 185,772 190,416 195,176 200,056 Insurance 25,167 25,670 26,183 26,707 Management Fee 62,089 63,934 65,834 67,791 Total Operating Expenses $699,484 $715,006 $730,879 $747,113 Capital Reserves $30,200 $30,804 $31,420 $32,048 Total Expenses $729,684 $745,809 $762,299 $779,161

NET OPERATING INCOME $1,339,954 $1,385,330 $1,432,176 $1,480,537

ASSUMPTIONS Year 5 Year 6 Year 7 Year 8 Annualized GSR Growth Rates 3.00% 3.00% 3.00% 3.00% Less: (Gain)/Loss-to-Lease 0.00% 0.00% 0.00% 0.00% Less: Vacancy 0.00% 0.00% 0.00% 0.00% RUBS Income 2.00% 2.00% 2.00% 2.00% Expenses 2.00% 2.00% 2.00% 2.00% Management Fee 3.00% 3.00% 3.00% 3.00%

Financial Analysis 83 MULTIFAMILY INVESTMENT SALES

CARTER WOOD DREW WHITE MIKE MARSHALL Associate Executive Managing Director Executive Managing Director 804.350.2109 202.664.5890 703.575.2152 [email protected] [email protected] [email protected]

WINK EWING ED GARNICA MATTHEW TREUMUN Senior Managing Director Financial Analyst Graphic Designer 703.575.2157 703.918.4678 703.918.4669 [email protected] [email protected] [email protected]

OFFICE LOCATIONS

WASHINGTON, D.C. TYSONS CORNER RICHMOND NORFOLK 1899 Pennsylvania Ave NW 1410 Spring Hill Rd 1512 Willow Lawn Dr 999 Waterside Dr Suite 300 Suite 600 Suite 200 Suite 2525 Washington, D.C. 20006 McLean, VA 22102 Richmond, VA 23230 Norfolk, VA 23510