Confidential Offering Memorandum

pu en station

confidential offering memorandum BRYSE TOOTHAKER ALEX MCDERMOTT AUSTIN GREEN Senior Advisor Senior Advisor Senior Advisor direct: 704.727.2926 direct 704.533.4865 direct 704.962.7454 office: 800.746.3175 ext. 703 office 800.746.3175 ext. 700 office 800.746.3175 ext. 701 [email protected] [email protected] [email protected]

BRIAN FORD RON CORRAO A.J. KLENK Managing Partner Senior Advisor Managing Partner direct 704.962.9462 direct 980.349.6994 direct: 704.231.4882 office 800.746.3175 ext. 702 office 800.746.3175 ext. 712 office: 800.746.3175 ext. 704 [email protected] [email protected] [email protected] CONTENTS

Investment Rationale 5

executive summary investment highlights

Location Overview 13

raleigh overview thriving economy multi-family fundamentals nearby amenities

Property Description 23

property details physical attributes parcel view location map

Apartment Market 33

comparable sales rental competitors

Financial Analysis 43

fresh debt analysis short term rental analysis

INVESTMENT RATIONALE

executive summary investment highlights executive summary

Capstone Apartment Partners is pleased to offer the truly unique opportunity to acquire Pullen PROPERTY OVERVIEW Station: a 100-unit studio apartment community ideally located between North Carolina State Address 211 Ashe Ave. University and the skyscrapers of downtown Raleigh. Pullen Station offers a timeless infill location City/State Raleigh, NC that has benefitted tremendously from the in-place value-add program, which has provided Acreage 1.72 an excellent foundation for new ownership to complete and take the property to the next level. Property Type Garden Apartments Number of Units 100 As the demand for lower-cost housing options continues to increase, Pullen Station will be YOC/Renovation 1984/2018 perfectly positioned and differentiated in the urban core submarket. With the majority of the Occupancy 92.0% heavy lifting complete and a proven interior value-add program nearly complete, new owners Rentable Square Feet 22,500 can immediately focus on driving NOI growth organically on renewals, while renovating the Average Unit Size (SF) 225 remaining units upon turnovers. Average Effective Rent/Unit $779 Average Effective Rent/SF $3.46 Sales Terms Free and Clear EXISITING VALUE PROPOSITIONS Offering Price TBD by Market A Timeless Infill Location Adjacent to Downtown Raleigh & NC State University

Unique Floorplans and an Attractive Differentiated Product

In-Place Physical and Operational Value-Add Initiative to Build On

Future Development Covered Land Opportunity

Hotel Conversion/Short Term Rental Opportunity

6 | Investment Rationale differentiated product

UNIQUE FLOORPLANS AND AN ATTRACTIVE SUBMARKET AVG STUDIO MARKET RENTS COMPARISON $1,400 $470 DIFFERENTIATED PRODUCT BELOW $1,200 $386 Pullen Station represents both an exciting and rare opportunity to cater to residents $1,000 BELOW $1,249 $1,163 seeking a cost-efficient living option($386/month below average studio $800 $779 $600 rents and $470/month below the rental competitors in the downtown $400 Raleigh submarket) while also having convenient access to downtown $200 Raleigh. Furthermore, residents at Pullen Station need not sacrifice quality, as $0 the community’s renovated units are top of the line with modern fits and finishes. Pullen Station Weighted Studio Comps Within 2 Rental Competitor Avg Avg Mile Radius

PULLEN STATION | 7 value-add opportunities

IN-PLACE PHYSICAL AND OPERATIONAL VALUE-ADD INITIATIVE TO BUILD ON

Pullen Station has been exceptionally maintained as current ownership has invested significantly in targeted CapEx as well as focused interior unit upgrades. With much of the heavy lifting complete, new ownership can focus on completing the existing value-add program for the remaining 14 units.

IN-PROGRESS UNIT RENOVATIONS

Upgraded Appliances

Faux Hardwood Vinyl Flooring

New Countertops with Solid Wood Cabinetry

Modern Hardware & Lighting Package

New Vanities in Bathroom

New Water Closets, Kitchen Faucets, and Bath Faucets

8 | Investment Rationale value-add opportunities

ADDITIONAL RENT GROWTH HEADROOM UTILITY REIMBURSEMENT UPSIDE $100,000 $90,596 UTILITY Current management is achieving on average $170 rent premium $90,000 REIMBURSEMENT $80,000 $69,651 across the 85 renovated units. In addition to the in-progress interior value- $70,000

$60,000 add program, further headroom exists to grow effective rents to market levels. $69,651 $50,000 INCREASE TO EGI The Link Apartments Glenwood South and The Dillon, comparable new $40,000

Effective Gross Income Income Gross Effective $30,000 construction properties in the downtown Raleigh submarket with similar studio- $20,000 sized floorplans, are achieving rents of $1,227 and $1,290 per studio unit, $10,000 $20,945 $20,945 $- respectively; thereby, providing just two more examples of additional headroom December 2018 T6 Utility Reimbursement 100% Water/Sewer/Trash Utility Reimbursement in PF Y2 to push rents further at Pullen Station. *Note: PF Y2 Utility Reimbursement factors 5% for vacancy and a 2% expense increase.

SUBMARKET RALEIGH STUDIO RENT COMPS CHARGING BACK FOR WATER, SEWER, $1,400 $665 BELOW AND TRASH $1,200 $602 BELOW $1,290 $1,000 $170 $1,227 The property offers additional significant upside for new ownership due BELOW $800 to the recent implementation of a water, sewer, and trash reimbursement $600 $795 program, which current ownership has implemented without issue. Current $400 $625 ownership has sub-metered all units and began billing back residents in April $200

$0 of 2018 adding water, sewer, and trash charges to all renewals and new Pullen Station Studio Unrenovated Pullen Station Studio Renovated leases. Full implementation will provide an additional boost of $69,651 to Link Apts. Glenwood South Studio The Dillon Studio a new owner’s EGI.

PULLEN STATION | 9 covered land play

The 1.72-acre underlying real estate possesses undeniable value as a future development site for conventional multi-family, student housing, or office. Liberal zoning requirements do not place a cap on the maximum number of units allowed for development on properties zoned residential mixed-use. Pullen Station offers a true infill location within proximity to North Carolina State University., downtown Raleigh and the greater urban market making Pullen Station an extraordinary covered land play opportunity for years to come.

Read Raleigh's full Unified Development Ordinance here: https://www.raleighnc.gov/content/extra/Books/PlanDev/UnifiedDevelopmentOrdinance/20/.

MJM HOTEL (DELIV. 2020) 2812 HILLSBOROUGH (PROPOSED) SMOKEY HOLLOW (PROPOSED)

THEORY RALEIGH (CONST. 2018) METROPOLITAN (DELIV. Q1 2019)

THE DILLON PULLEN (CONST. 2018) STATION 10 ARROS (CONST. 2018)

FNB TOWER-RALEIGH (DELIV. OCT 2019) hotel conversion/short-term rentals

CAPITALIZE ON THE WHITE HOT SHORT-TERM RENTAL MARKET

Due to strong tourist and business fundamentals (16.45 million visitors in 2017), the hotel business is booming in Wake County with an average daily rate of $102.90. 2017 was a record year for the number of hotel rooms leased with hotel occupancy at 69.1%: out-pacing the state average of 63.4%. Also, Airbnb and other short- term rental platforms are a popular choice for tourists visiting Raleigh. New ownership will have the opportunity to reposition the asset into a free-standing boutique hotel or a building that exclusively features high-end, short-term rentals as advertised on Airbnb, VRBO, or other short-term rental outlets. Given the recent influx in tourism and massive economic growth in the Raleigh market, Pullen Station is positioned as an ideal asset to capitalize on the booming tourism industry and the influx of new businesses travel to Raleigh.

69.1% 5.3% HOTEL VISITOR GROWTH OCCUPANCY SINCE 2016

$102.90 16.45M AVERAGE DAILY WAKE COUNTY HOTEL RATE VISITORS IN 2017

PULLEN STATION | 11

LOCATION OVERVIEW

raleigh overview thriving economy multi-family fundamentals nearby amenities raleigh overview

Raleigh is the capital of North Carolina, and the state’s second largest city. Located in the central Piedmont region of the state, it is conveniently located just over two hours’ drive from Charlotte, the Atlantic coast, and two national forests; thereby, offering residents access to a wide array of entertainment, employment, and cultural opportunities. Pullen Station is ideally located close to the central business district between four major interstates, RDU International Airport, and five prominent Raleigh Universities, giving residents convenient access to all the Triangle MSA has to offer.

DOWNTOWN EDUCATION DOWNTOWN NIGHTLIFE

Pullen Station is located in the epicenter of 5 of the most prominent universities Raleigh is known for being a thriving government metropolis; however, the city is in Raleigh totaling 40,000 students: also known for is its thriving nightlife. When it comes to nightlife in Raleigh there are four main districts to choose from and each of them has its own signature North Carolina State University (34,015 enrolled) personality. All four districts are within walking distance of Pullen Station Meredith College (1,981 enrolled) (less than 2 miles).

Shaw University (1,604 enrolled) Glenwood South District: Located less than 1 mile from Pullen Station is the heart of the Glenwood South District. Over the past five William Peace University (1,077 enrolled) years, this district has transformed from a sleepy row of warehouses into a Saint Augustine’s University (919 enrolled) thriving restaurant and retail environment directly adjacent to downtown Raleigh. The Glenwood South District includes 36+ restaurants, 35+ CAMERON VILLAGE retailers, and a vibrant nightlife scene.

Fayetteville Street District: Raleigh’s epicenter of theatre and commerce Located less than 1 mile from Pullen Station is the Harris Teeter-anchored with historical bars and venues makes this one of the hottest spots in Cameron Village (568,000+ SF of retail and 97 shops, restaurants, and downtown Raleigh for nightlife. businesses). Cameron Village has been a favorite neighborhood destination Moore Square & The Warehouse Districts: Located on either side of for shoppers and diners since 1949. Seamlessly integrated into the surrounding the Fayetteville Street District, these famous districts offer both modern and neighborhoods, with cozy restaurants and an abundance of shopping, Cameron vintage bars and brewers perfect for locals looking to escape the hustle Village is a welcome retreat just minutes from downtown Raleigh. and bustle of city life.

14 | Location Overview local attractions

Raleigh has plenty to offer its residents, including award-winning hotels and spas; culinary delights for every taste; and cultural experiences including university gardens, historical landmarks, and breathtaking performing arts venues. Outdoor enthusiasts can find 180 miles of greenway trails along with Jordan Lake and two major state parks: Eno River and William B. Umstead. These attractions offer bike trails, picnic areas, hiking trails, swimming, playgrounds, running trails, and more.

TOP AREA ATTRACTIONS

North Carolina State Museums: Known as the Smithsonian of the South, Raleigh is home to many state museums including NC Museum of Natural Science, NC Museum of History, NC Museum of Art, Marbles Kids Museum, North Carolina State Capitol, and Contemporary Art Museum.

City Market: Opened more than a century ago, this public market houses several shops and boutiques, restaurants and bars, and a seasonal farmer's market.

Pullen Park: North Carolina's first public park, which sees thousands of visitors each year and is listed on the National Register of Historic Places.

PNC Arena: Hosting sports, tours, shows, and concerts: this venue sees more than 1.5 million guests each year at over 150 events.

Arboretum at NC State: This internationally-acclaimed garden boasts over 6,000 different plants, including both a rose garden and butterfly garden.

William B. Umstead State Park: Features over 22 miles of hiking paths, and 13 miles of mountain biking trails; home to 6,000 acres of recreation area that offers camping, canoing, and fishing.

PULLEN STATION | 15 population & job growth

POPULATION POPULATION

Raleigh’s demographic trends in the current cycle have consistently outperformed 2013 2014 2015 2016 2017 the national average, and growth is expected to continue in the immediate term. Raleigh (City) 431,470 439,784 449,963 459,048 464,758 With growth projected to be nearly three times the national average, Raleigh is Raleigh (MSA) 1,214,464 1,242,613 1,272,875 1,304,896 1,335,079 expected to hold its rank as one the nation’s fastest growing major metros. North Carolina 9,845,432 9,940,387 10,042,802 10,146,788 10,273,419

JOB GROWTH

As home to the renowned Research Triangle, there are a plethora of medical and 3.3% 12% 3.0% technology firms based in Raleigh. Graduates from the metro’s local universities UNEMPLOYMENT RATE POPULATION GROWTH YOY JOB GROWTH FOR create a consistent pipeline to the city's workforce. High-paying pharmaceutical (DEC 2018) (2011–2016) 5 CONSECUTIVE YEARS and tech jobs are abundant in the area, and the metro’s business costs average roughly 18% below the national figure. Together, a diversified economy and low business costs have contributed to one of the nation’s strongest recoveries from the recession.

RECENT ECONOMIC DEVELOPMENT

Amazon: a new distribution Pendo: adding 590 new LabCorp:Root Insurance: a new operations the center in Garner is expected jobs to existing employment informationcenter for technologythe clinical firmlab is to add 1,500 jobs in the will more than triple this firm's expandingmanagement their company current facility will coming years. presence in the metro. createto add 422over new 460 jobs.

16 | Location Overview strong employment

STRONG ECONOMIC OUTLOOK BODES WELL RALEIGH TOP EMPLOYERS FOR EMPLOYMENT The downtown employment base is primarily comprised of jobs in healthcare, technology, and government-related employment. Many of the employers below With a combination of higher education, medical, government, and technology have a strong presence in the downtown Raleigh submarket; thus, giving Pullen jobs, Raleigh’s employment growth has out outpaced a majority of the country Station a unique advantage over other rental competitors due to its location as well as other North Carolina MSAs. Employment in the region has increased adjacent to downtown Raleigh. by 2.7%, and unemployment has remained consistently below state and national TOP EMPLOYERS IN WAKE COUNTY averages; therefore, fueling population growth in the region. COMPANY EMPLOYMENT Duke University and Health System 38,591 RESEARCH TRIANGLE PARK (RTP) State of North Carolina 24,083 Wake County Public School System 19,845 As one of the largest continuously operating advanced science and technology Wal-Mart 16,135 parks in North America, RTP is home to more than 170 companies and 50,000 IBM Corporation 10,000 jobs. Located at the epicenter of Raleigh-Durham, the site is a world-renowned WakeMed Health & Hospitals 9,105 R&D campus and a major economic demand driver for the region. Working North Carolina State University 9,069 alongside three huge local and regional universities, RTP is a hotbed for Target 8,000 UNC Rex Healthcare 7, 4 0 0 innovation, investors, entrepreneurs, and multi-national companies. SAS Institute, Inc. 5,632 Cisco Systems, Inc. 5,000 MAJOR JOB ANNOUNCEMENTS Harris Teeter 5,000 Blue Cross and Blue Shield NC 4,700 Several firms are expected to make major contributions to the metro’s job market NC Department of Health & Human Services 3,800 in the coming quarters, including software developer Pendo’s addition of 590 Fidelity Investments 3,700 jobs after accepting roughly $10.7 million in incentives. Pendo is already a Xylem 3,691 sizable employer in downtown Raleigh, but these changes will more than triple City of Raleigh 3,673 the firm’s occupancy in the metro. Additionally, Amazon is expected to add more Conduent Incorporated 3,300 than 1,500 jobs in Garner in the coming years at the new distribution center. GlaxoSmithKline 3,000 PULLEN STATION | 17 multi-family fundamentals

Raleigh's strong demographics and rapid job creation continue to ABSORPTION, DELIVERIES, & VACANCY RATE lure developers and residents to the metro; thus, contributing to a surge in housing demand and an uptick in construction. Considerable 5,000 10.0% population growth has contributed to the metro’s ability to absorb 4,500 9.0% multi-family units as new product delivered, and has kept vacancies 4,000 3,500 within the historical average range. Rents have been able to climb 8.0% consistently, rising roughly 3.5% in the past year. 3,000 2,500 7.0% Investors have taken notice of Raleigh's growth, and investment volume 2,000 6.0% has increased throughout the cycle, exceeding $1 billion several times 1,500 1,000 and reaching a metro record of more than $1.8 billion in 2018. 5.0% 500 RENTER PROFILE 0 4.0% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

The Raleigh metro is young with a median age approximately three Deliveries Net Absorption Vacancy years less than the national average. The 20–34-year-old cohort, most likely to rent, composes nearly a quarter of the metro’s population and is projected to grow nearly 15% cumulatively by 2020. The metro’s comparatively high median household income exceeds $75,000 per year compared to closer to $61,000 for the U.S.

DOWNTOWN SUBMARKET

Downtown Raleigh contains much of the metro's premium office inventory and local amenities. The submarket's rapid population growth and large share of renters has contributed to increased apartment demand. The area’s walkability is the best in the Triangle, providing excellent access to restaurants, retail, and outdoor events. With another 1,000 apartments underway, the submarket is poised for even more growth.

18 | Location Overview #1 #2 #3 #3 #4 PLACE PEOPLE ARE MOST AMERICA'S FASTEST BEST LARGE CITY BEST CITY FOR BEST PLACE SATISFIED RENTING GROWING METRO TO LIVE IN JOB SEEKERS TO LIVE Adobo Forbes RCLCO & Capridge Partners USA Today U.S. News

PULLEN STATION | 19 nearby amenities

CAMERON VILLAGE 440

(118,000± VPD)

CAMERON VILLAGE

PULLEN STATION 1,981 ENROLLED HILLSBOROUGH ST. (17,000± VPD) LESS THAN 1 MILE FROM RALEIGH CBD

PULLEN PARK

1.5 MILES FROM PULLEN STATION 34,015 ENROLLED

20 | Location Overview nearby amenities

DOWNTOWN RALEIGH CAPITAL BLVD. (53,000± VPD) GLENWOOD SOUTH DISTRICT

42nd St Oyster Bar Xoco Mexican Grill Raleigh Beer Garden Seoul 116 919 ENROLLED Sushi Blues Cafe Google Fiber Space The Wine Feed Tobacco Rd Sports Cafe 1,077 ENROLLED & Brewery Cornerstone Tavern

GLENWOOD SOUTH DOWNTOWN FAYETTEVILLE STREET DISTRICT RALEIGH Duke Energy Center for the Poole's Diner Performing Arts Carolina Ballet Rye Bary & Southern Kitchen Fox Liquor Bar Woody's At City Market The Big Easy Downtown Farmer's Market London Bridge Pub 1,604 ENROLLED Pizza La Stella

WAREHOUSE DISTRICT

The Fiction Kitchen Whiskey Kitchen MCDOWELL ST. (37,000± VPD) Crank Arm Brewing Co. Red Hat Amphitheater CAM Raleigh Legends Nightclub Boxcar Bar + Arcade Heirloom Coffee, Tea, Sake STATE FARMERS The Pit Authentic BBQ Videri Chocolate Factory MARKET

PULLEN STATION | 21

PROPERTY DESCRIPTION

property details physical attributes parcel view location map property details

UNIT MIX TYPE UNITS SF TOTAL SF MARKET RENT RENT PSF

Studio 15 225 3,375 $685 $3.04

Studio Reno 85 225 19,125 $795 $3.53

Totals/Avgs 100 225 22,500 $779 $3.46

OVERVIEW

Address 211 Ashe Ave.

City/State Raleigh, NC

Management 3 Points

YOC/Revo. 1984/2018

Units 100

Occupancy 92.0%

Acres 1.72 Fully sub-metered. Administrative Utilities implementation in process.

24 | Property Description title right

PULLEN STATION | 25 physical attributes

INTERIOR EXTERIOR UNIT FEATURES

Appliances include a refrigerator and stove top. Two (2) total apartment buildings. 16' vaulted ceilings with loft bedroom.

One (1) model/office unit and one (1) unit serving Wi-Fi and cable ready. Single basin kitchen sinks. as a laundry facility. Renovated units feature new cabinets with Brick veneer exterior siding. modern hardware and tile backsplash. 85 renovated units feature faux composite hardwood plank flooring throughout and Gabled roofs with asphalt shingles. ceramic tile in bathrooms. Window blinds. Poured reinforced concrete slab foundation. Wall-mounted vanity bathroom sinks.

Unrenovated units have a mix of ceramic tile, Wood frame construction. plank vinyl, carpet, and sheet vinyl in bathrooms. Porcelain commodes. 100 units on approximately 1.72 acres (58.1 units per acre). Acrylic shower stalls. Renovated units feature butcher block kitchen and bathroom countertops. 103 parking space (1.03 spaces per unit). Ceiling fans in loft bedroom.

Unrenovated units feature laminate countertops.

Double pane wood windows.

Paneled, metal insulated exterior doors.

Hollow core, wood doors in interiors.

26 | Property Description physical attributes

COMMUNITY FEATURES SYSTEMS

Model unit. Units feature either a 20-gallon, 6-gallon or tankless water heater. Designated pet areas. Interior in-wall A/C and heating units. Mail kiosk stations. Battery operated smoke detectors in all units. Laundry center.

PEX & polybutylene.

Copper wiring.

Trash dumpster owned by property; Waste Industries empties one (1) 3x5 yard dumpster twice per week.

Water/Sewer provided by City of Raleigh.

Electricity provided by Duke Energy Progress.

Natural gas provided by PSNC.

Water/Sewer is fully sub-metered. Administrative implementation is in process.

Cable and internet provided by variety of companies.

PULLEN STATION | 27 title left

28 | Property Description title right

PULLEN STATION | 29 parcel view

30 | Property Description location map

POINTS OF INTEREST Distance Attraction (miles) Pullen Park 0.3 Cameron Village 1.0 NC State University 1.2 Downtown Raleigh 1.4 NC State Capitol 1.6 William Peace University 1.9 Meredith College 2.4 Wake Med Raleigh Campus 4.5 UNC Rex Hospital 4.8

PULLEN PNC Arena 4.8 STATION Duke Raleigh Hospital 5.4 Crossroads Plaza 6.0 Cary, NC 7.2 Triangle Town Center 9.8 William B Umstead State Park 10.5 RDU Int'l Airport 12.4 Briar Creek Commons 16.3 Research Triangle Park 16.7 Durham, NC 23.8 Chapel Hill, NC 27.7

PULLEN STATION | 31

APARTMENT MARKET

comparable sales rental competitors comparable sales

LYNN LAKE SOMMERSET PLACE LYNNWOOD PARK

AVERELLE NORTH HILLS

MILLBROOK

PULLEN STATION

REGENCY PLACE

THE SUMMIT AT AVENT FERRY

34 | Apartment Market comparable sales

PROPERTY YOC LOCATION SALE DATE UNITS PRICE PRICE/UNIT CAP RATE RENT PSF

Pullen Station 1984 Raleigh, NC - 100 - - - $3.46

Millbrook 1986 Raleigh, NC 06/12/18 117 $10,600,000 $90,598 5.3% $1.01

Lynn Lake 1986 Raleigh, NC 06/12/18 101 $12,600,000 $124,752 5.1% $1.00

Lynnwood Park 1984 Raleigh, NC 0 3/2 7/18 152 $14,500,000 $95,395 5.5% $1.09

Sommerset Place 1983 Raleigh, NC 12/21/17 144 $14,250,000 $98,958 5.3% $1.18

Averelle North Hills 1986 Raleigh, NC 12/18/17 228 $25,600,000 $112, 281 5.1% $1.18

The Summit at Avent Ferry 1986 Raleigh, NC 06/29/17 222 $23,500,000 $105,856 6.5% $1.06

Regency Place 1985 Raleigh, NC 02/08/17 180 $20,750,000 $115,278 5.3% $1.15

Averages 1985 163 $17,400,000 $106,160 5.4% $1.10

PULLEN STATION | 35 rental competitors

STANHOPE APARTMENTS

DEVON FOUR25

THE GRAMERCY

LINK APARTMENTS

THE DILLON PULLEN STATION

THE EDISON LOFTS

36 | Apartment Market rental competitors

PROPERTY ADDRESS LOCATION YOC UNITS OCCUPANCY AVG STUDIO RENT

Pullen Station 211 Ashe Ave. Raleigh, NC 1984 100 92.0% $779

Stanhope Apartments* 3001 Hillsborough St. Raleigh, NC 2015 300 99.0% $1,140

The Gramercy 650 W. North St. Raleigh, NC 2016 203 91.2% $1,149

Devon Four25 425 N Boylan Ave Raleigh, NC 2015 261 90.4% $1,397

The Edison Lofts 131 E. Davie St. Raleigh, NC 2016 223 91.9% $1,289

Link Apartments Glenwood South 202 N West St. Raleigh, NC 2016 204 94.6% $1,210

The Dillon 401 W Hargett St. Raleigh, NC 2018 271 74.5% (Lease-Up) $1,326

Averages 2016 244 93. 4%** $1,252

*Student Housing

**Lease-up not included in average.

PULLEN STATION | 37 rental competitors

AVERAGE STUDIO RENT PER UNIT AVERAGE STUDIO & 1 BR RENT PER SF

AVERAGE $1,252 AVERAGE $2.12 Pullen Station $779 Pullen Station $3.46 Stanhope Apartments $1,140 Stanhope Apartments $2.30 The Gramercy $1,149 The Gramercy $2.05 Devon Four25 $1,397 Devon Four25 $1.95 The Edison Lofts $1,289 The Edison Lofts $1.91 Link Apartments $1,210 Link Apartments $2.05 The Dillon $1,326 The Dillon $2.45

$0 $500 $1,000 $1,500 $0.00 $1.00 $2.00 $3.00 $4.00

OCCUPANCY YEAR OF CONSTRUCTION

AVERAGE* 93.4% AVERAGE 2016 Pullen Station 92.0% Pullen Station 1984 Stanhope Apartments 99.0% Stanhope Apartments 2015 The Gramercy 91. 2% The Gramercy 2016 Devon Four25 90.4% Devon Four25 2015 The Edison Lofts 91.9% The Edison Lofts 2016 Link Apartments 94.6% Link Apartments 2016

The Dillon 74.5% LEASE-UP The Dillon 2018

20.0% 40.0% 60.0% 80.0% 100.0% 1961 1971 1981 1991 2001 2011 2021

*Lease-up not included in average. 38 | Apartment Market rental competitors

STANHOPE APARTMENTS THE GRAMMERCY

DESCRIPTION DESCRIPTION Address 3001 Hillsborough St. Address 650 W. North St. Cit y/State Raleigh, NC Cit y/State Raleigh, NC Mgmt. Kane Mgmt. Greystar Year Built 2015 Year Built 2016 Total Units 300 Total Units 203 Occupancy 99.0% Occupancy 91.2% Acres 4.17 Acres 1.22 Utilities None Included Utilities None Included

UNIT MIX UNIT MIX

UNIT TYPE # UNITS SF/UNIT TOTAL SF RENT/UNIT RENT/SF UNIT TYPE # UNITS SF/UNIT TOTAL SF RENT/UNIT RENT/SF Studio 56 485 27,16 0 $1,140 $2.35 Studio 22 540 11,88 0 $1,135 $2.10 1BR/1BA 12 728 8,736 $1,550 $2.13 Studio 10 590 5,900 $1,090 $1.85 Totals/Avgs 68 528 35,896 $1,212 $2.30 Studio 5 696 3,480 $1,325 $1.90 1BR/1BA 5 687 3,435 $1,400 $2.04 1BR/1BA 40 691 27, 6 4 0 $1,431 $2.07 1BR/1BA 57 723 41, 211 $1,493 $2.07 1BR/1BA 10 856 8,560 $1,785 $2.09 1BR/1BA 5 883 4,415 $1,756 $1.99 Totals/Avgs 154 692 106,521 $1,419 $2.05

FEATURES & AMENITIES FEATURES & AMENITIES Swimming Pool Tanning Bed Community Lounge Saltwater Pool Yoga Studio Patio/Balcony Theater Room Picnic/Grilling Area Furnished Units Picnic/Grilling Area Clubroom Walk-In Closets Fitness Center Outdoor Terraces W/D in Unit Fitness Center Bike Storage W/D in Unit

PULLEN STATION | 39 rental competitors

DEVON FOUR25 THE EDISON LOFTS

DESCRIPTION DESCRIPTION Address 425 N Boylan Ave Address 131 E. Davie St. Cit y/State Raleigh, NC Cit y/State Raleigh, NC Mgmt. Greystar Mgmt. Continental Year Built 2015 Year Built 2016 Total Units 261 Total Units 223 Occupancy 90.4% Occupancy 91.9% Acres 1.77 Acres 1.46 Utilities None Included Utilities None Included

UNIT MIX UNIT MIX

UNIT TYPE # UNITS SF/UNIT TOTAL SF RENT/UNIT RENT/SF UNIT TYPE # UNITS SF/UNIT TOTAL SF RENT/UNIT RENT/SF Studio 1 588 588 $1,242 $2.11 Studio 40 500 20,000 $727 $1.45 Studio 12 600 7, 20 0 $1,370 $2.28 3BR/2BA 12 1,263 15,156 $1,255 $0.99 Studio 6 613 3,678 $1,477 $2.41 Totals/Avgs 156 753 117, 536 $1,439 $1.91 1BR/1BA 52 674 35,048 $1,329 $1.97 1BR/1BA 51 713 36,363 $1,431 $2.01 1BR/1BA 8 728 5,824 $1,489 $2.05 1BR/1BA 7 780 5,460 $1,251 $1.60 1BR/1BA 55 818 44,990 $1,498 $1.83 1BR/1BA 4 873 3,492 $1,621 $1.86 Totals/Avgs 196 728 142,643 $1,419 $1.95

FEATURES & AMENITIES FEATURES & AMENITIES Swimming Pool Dog Park Patio/Balcony* Swimming Pool Community Patio Patio/Balcony Fitness Center Basketball Court W/D Connections* Fitness Center Dog Park W/D in Unit 40 | Apartment Market rental competitors

LINK APARTMENTS GLENWOOD SOUTH THE DILLON

DESCRIPTION DESCRIPTION Address 202 N West St. Address 401 W Hargett St. Cit y/State Raleigh, NC Cit y/State Raleigh, NC Mgmt. Grubb Properties Mgmt. Kane Year Built 2016 Year Built 2018 Total Units 204 Total Units 271 Occupancy 94.6% Occupancy 74.5% (Lease-Up) Acres 1.27 Acres 2.07 Utilities None Included Utilities None Included

UNIT MIX UNIT MIX

UNIT TYPE # UNITS SF/UNIT TOTAL SF RENT/UNIT RENT/SF UNIT TYPE # UNITS SF/UNIT TOTAL SF RENT/UNIT RENT/SF Studio 38 494 18,772 $1,230 $2.49 Studio 20 469 9,380 $1,153 $2.46 Studio 1 695 695 $1,132 $1.63 Studio 15 522 7,83 0 $1,327 $2.54 1BR/1BA 20 593 11,86 0 $1,126 $1.90 Studio 35 535 18,725 $1,342 $2.51 1BR/1BA 87 637 55,419 $1,259 $1.98 Studio 5 549 2,745 $1,366 $2.49 1BR/1BA 8 665 5,320 $1,202 $1.81 1BR/1BA 6 573 3,438 $1,438 $2.51 1BR/1BA 2 713 1,426 $1,387 $1.95 1BR/1BA 55 595 32,725 $1,473 $2.48 1BR/1BA 1 728 728 $1,381 $1.90 1BR/1BA 12 720 8,640 $1,861 $2.58 1BR/1BA 5 739 3,695 $1,392 $1.88 1BR/1BA 33 738 24,354 $1,693 $2.29 1BR/1BA 1 757 757 $1,332 $1.76 Totals/Avgs 181 596 107,837 $1,462 $2.45 Totals/Avgs 163 605 98,672 $1,239 $2.05

FEATURES & AMENITIES FEATURES & AMENITIES

Saltwater Pool Dog Park Patio/Balcony* Saltwater Pool Coworking Space Patio/Balcony* Fitness Center Yoga Studio W/D in Unit Fitness Center Picnic/Grilling Area W/D in Unit PULLEN STATION | 41

FINANCIAL ANALYSIS

fresh debt analysis short term rental analysis cash flow analysis—fresh debt

DECEMBER 2018 DECEMBER 2018 YEAR 1 YEAR 2 T6 INCOME/T12 EXPENSE T3 INCOME/T12 EXPENSE PRO FORMA PRO FORMA

TOTAL PER UNIT TOTAL PER UNIT TOTAL PER UNIT TOTAL PER UNIT INCOME 1 Market Rent 922,577 9,226 930,633 9,306 941,868 9,419 1,004,984 10,050 2 Upgraded Premium - - - - 15,779 158 - - 3 Loss-to-Lease (45,406) (454) (37, 7 76) (378) (28,729) (287) (20,100) (201) GROSS POTENTIAL RENT $877,171 $8,772 $892,857 $8,929 $928,918 $9,289 $984,884 $9,849 4 Vacancy Loss (79,833) (798) (49,963) (500) (46,446) (464) (49,244) (492) 5 Concession (44,649) (446) (16,068) (161) (18,578) (186) (14,773) (148) 6 Model/Office & Laundry (19,020) (190) (18,960) (190) (19,462) (195) (20,143) (201) 7 Bad Debt (26,003) (260) (22,594) (226) (18,578) (186) (14,773) (148) EFFECTIVE RENTAL INCOME $707,666 $7,077 $785,273 $7,853 $825,854 $8,259 $885,951 $8,860 8 Other Income 20,929 209 27, 38 4 274 32,512 325 33,650 337 9 Utility Reimbursement 20,945 209 25,271 253 70,035 700 90,596 906 EFFECTIVE GROSS INCOME $749,540 $7, 495 $837,929 $8,379 $928,401 $9,284 $1,010,197 $10,102 Annual EGI Increase 9.1% 11.8% 10.8% 8.8%

EXPENSES 10 Repairs & Maintenance 30,519 305 30,519 305 30,000 300 30,600 306 11 Turnover/Make-Ready 11,855 119 11,855 119 15,000 150 15,300 153 12 Salaries & Payroll - - - - 70,020 700 71,420 714 13 General & Admin 2,554 26 2,554 26 12,500 125 12,750 128 14 Marketing 4,002 40 4,002 40 7, 50 0 75 7,6 50 77 15 Contractor Services 3,520 35 3,520 35 10,000 100 10,200 102 16 Utilities 99,448 994 99,448 994 101,437 1,014 103,465 1,035 17 Management Fee 26,828 268 26,828 268 37,136 371 40,408 404 18 Insurance 19,962 200 19,962 200 20,000 200 20,000 200 19 Real Estate Taxes 26,986 270 26,986 270 27, 791 278 28,347 283 Total Operating Expense $225,675 $2,257 $225,675 $2,257 $331,384 $3,314 $340,140 $3,401 Expense % of EGI 30.1% 26.9% 35.7% 33.7%

20 Capital Reserves 20,000 200 20,000 200 20,000 200 20,000 200 TOTAL EXPENSE–POST RESERVE $245,675 $2,457 $245,675 $2,457 $351,384 $3,514 $360,140 $3,601

NET OPERATING INCOME $503,865 $5,039 $592,254 $5,923 $577,017 $5,770 $650,057 $6,501 44 | Financial Analysis underwriting assumptions—fresh debt

Market Rent is based on rents in place at Pullen Station as of January 2019, as provided by management. Rental rate increase of 2% was projected in Pro Forma Year 1. A breakdown of the Market Rent, as of January 2019, is shown below and does not factor the upgraded premiums.

1 Market Rent UNIT # OF EACH SF TOTAL SF MARKET RENT RENT/SF MONTHLY ANNUAL Studio 15 225 3,375 $625 $2.78 $9,375 $112, 50 0 Studio (Reno) 85 225 19,125 $795 $3.53 $67, 575 $810,900 Total/Average 100 225 22,500 $770 $3.42 $76,950 $923,400

Upgraded Premiums are outlined below and assumed a total of $106,000 ($7,571 per unit) budgeted for capital expenditures in order to complete interior renovations and exterior capital needs. One unit will remain a laundry facility and therefore does not require upgrades.

UNIT # OF EACH SF PREMIUM NEW MARKET RENT RENT/SF MONTHLY ANNUAL Studio 14 225 $170 $795 $3.53 $11,130 $133,560 Studio (Reno) 85 225 $0 $795 $3.53 $67, 575 $810,900 Total/Average: 100 225 $24 $787 $3.50 $78,705 $944,460

The Cash Flow Analysis assumed new ownership would complete the in-place, value-add initiative during the first year of ownership. 2 Upgraded Premium Respectively, the upgrade premium is expected to be phased into the total market rent over that timeframe as well.

YEARLY UPGRADED PREMIUM DISTRIBUTION VALUE-ADD/CAPITAL NEEDS Year 1 Per Upgraded Unit $4,000 % Online Units/Year 100% Unit Count 14 Online Units/Month 8 Exterior Capital Needs $50,000 Rent Premium/Month $198 Total Cost $106,000 Rent Premium Annual $15,470 Rent Premium Final $28,560

PULLEN STATION | 45 underwriting assumptions—fresh debt

Loss-to-Lease is projected to be 3.0% of total Market Rent in the Pro Forma Year 1 to account for the 2.0% rent growth. Pro Forma Year 3 Loss-to-Lease 2 Loss-to-Lease is projected to be 2% of total Market Rent.

The Pro Forma Year 1 & Pro Forma Year 2 Vacancy Loss is conservatively projected to be 5.0% of the Gross Potential Rent, which is 4 Vacancy Loss consistent with historical operations and comparable assets in the submarket.

Concessions were projected to be 2.0% in the Pro Forma Year 1 in order to conservatively account for the marketing needs associated 5 Concession with strategic rent increases on renewals. Pro Forma Year 2 Concessions are projected to be 1.5%.

6 Model/Office & Laundry Two total units are expected to be used as model/office and laundry (two studios).

Bad debt is projected to be 2.0% of Gross Potential Rent in the Pro Forma Year 1. Pro Forma Year 2 Bad Debt is projected to be 1.5% of 7 Bad Debt Gross Potential Rent.

All Other Income line items in Pro Forma Year 1 are projected to be 3.5% of Gross Potential Rent. Other Income includes laundry 8 Other Income fees, application fees, late fees, etc.

46 | Financial Analysis underwriting assumptions—fresh debt

Pullen Station is currently sub-metered for water/sewer and allows new ownership the opportunity to continue the water and sewer bill-back program to recoup a percentage of the annual expense. These type of bill-back programs are common within the market. Pullen Station is also collecting a trash free for 73 units. It is assumed that a trash fee will be fully implemented and collected for all units in Pro Forma Year 1 and full implementation of the water/sewer reimbursement will be in place in Pro Forma Year 2. The chart below is based on the current bill-back program and factors a loss from Vacancy. Pro Forma Year 2 Factors in a 2% Expense increase.

UTILITY REIMBURSEMENT SCHEDULE Unit Type Trash Fee ($) Units Monthly Annual Studio $12 100 $1,200 $14,400 9 Utility Reimbursement Total $14,400 Unit Type T12 Water/Sewer Expense Units Monthly Annual (90% Recapture) Studio $87,883 100 $7, 324 $79,094 Total $79,094 Unit Type Water, Sewer, and Trash Implementation Annual (90% Recapture) 100% Trash Implementation. PF Year 1 @ 5% Vacancy $70,035 75% Implementation of Water Sewer Reimbursement 100% Trash Implementation. PF Year 2 @ 5% Vacancy $90,596 100% Implementation of Water Sewer Reimbursement

Repairs & Maintenance expenses are projected to be $300 per unit, which are consistent with market averages for product of this quality, 10 Repairs & Maintenance size, and vintage in the Raleigh market.

11 Turnover/Make-Ready Turnover/Make-Ready expenses are assumed to be $150 per unit.

PULLEN STATION | 47 underwriting assumptions—fresh debt

Salary & Payroll projections, outlined in the following table, are based on appropriate staffing levels and market average compensation standards in the Raleigh market. Leasing Bonuses are projected to be 10% of Salaries, while Benefits/Taxes are assumed to be 20% of total Payroll.

POSITION # OF EACH SALARY TOTAL ADMINISTRATION FT Leasing Agent 0.75 $38,000 $28,500 Bonus @ approx. 10% of Salaries $2,850 12 Salaries and Payroll Administrative Subtotal 0.75 $31,350 Burden (Benefits/Taxes) at 20% of Total Payroll $6,270 Total Administrative Salaries/Benefits/Taxes $37,620 MAINTENANCE & REPAIRS Maintenance Tech 0.75 $36,000 $27,000 Maintenance Subtotal 0.75 $27,000 Burden (Benefits/Taxes) at 20% of Total Payroll $5,400 Total Maintenance Salaries/Benefits/Taxes $32,400 Total Payroll 1.5 $70,020

13 General & Admin General & Admin expenses are assumed to be to be $125 per unit.

14 Marketing Marketing expenses are assumed to be $75 per unit for Pro Forma Year 1.

15 Contractor Services Contractor Services are assumed to consist of landscaping and exterminating. Pro Forma Year 1 is projected to be $100 per unit.

48 | Financial Analysis underwriting assumptions—fresh debt

Utility expenses typically include water, sewer, trash, electricity, and internet or cable. The subject units are individually metered for water/ 16 Utilities sewer/trash, therefore this expense is currently being transferred back to the tenants. Tenants are also responsible for all other utilities. Pro Forma Year 1 Utility Expense is equal to the trailing 12 month figure with a 2.0% rise in inflation.

Management Fee is assumed to be 4.0% of Effective Gross Income which is consistent with industry norms for an asset of this vintage, 17 Management Fee size, and quality.

18 Insurance Insurance expenses are assumed to be $200 per unit.

Wake County conducts a property revaluation every four years in order to keep pace with changing market values. Wake County's last reappraisal of all real property was in 2016 with the next reappraisal expected to occur in 2020.

2018 Taxable Value $2,031,700 19 Real Estate Taxes Pro Forma Year 1 utilized the recently released 2018 tax bills for Wake County 13,295 Pullen Station and all related parcels with an additional 2.0% Raleigh City 11,950 expense increase. Recycling Fee 2,000 Total 2018 Tax Bill $27,791

$200 per unit, per year is assumed, as this is consistent with current lender requirements and capital needs for product of this age 20 Capital Reserves and quality.

*Note: Each unit is separately parceled for easy condo conversion.

PULLEN STATION | 49 cash flow analysis—short term rental

*IRR ASSUMPTIONS BUYER PROJECTED YEAR 1 STABILIZED YEAR 1 Purchase Price** $17,393,589 YEAR 2 VALUE AND RETURNS PRO FORMA Hold Period 7 Years Terminal Cap Rate 7.0 0 % Income Growth Assumed 0.00% 3.00% Cost of Sale 2.0% Expense Increase Assumed 2.00% Loss-to-Lease 0.00% 0.00% NEW MORTGAGE Vacancy 30.00% 30.00% LTV 70% Concession 0.00% 0.00% Loan Amount $12,175,512 Model/Employee 1.00% 1.00% Rate 5.50% Bad Debt 0.00% 0.00% Amortization 25 Years Economic Vacancy 31.00% 31.00% Term 7 Years INCOME Per Unit Debt Service $897,220 1 Market Rent 3,102,500 31,025 3,195,575 No I/O Periods GROSS POTENTIAL RENT 3,102,500 31,025 3,195,575 2 Vacancy Loss (930,750) (9,308) (958,673) 3 Model/Office & Laundry (31,025) (310) (31,956) ROE AVERAGES EFFECTIVE RENTAL INCOME 2,140,725 21,407 2,204,947 Year ROE % 4 Other Income 31,025 310 31,956 3-Year Average 9.37% EFFECTIVE GROSS INCOME 2,171,750 21,718 2,236,903 5-Year Average 9.96% Annual EGI Increase 3.00% 7-Year Average 10.77% EXPENSES Per Unit 5 Repairs & Maintenance 60,000 600 61,200 6 Cleaning Fees 168,000 1,680 171,360 7 Salaries and Payroll 93,360 934 95,227 8 General & Admin 12,500 125 12,750 9 Marketing 20,000 200 20,400 10 Contractor Services 25,000 250 25,500 11 Utilities 101,437 1,014 103,466 12 Management Fee 217,175 2,172 223,690 13 Insurance 35,000 350 35,000 14 Real Estate Taxes 27,791 278 28,347 TOTAL EXPENSES 760,263 7,603 776,940 Expense % of EGI 35.0% 34.7% NOMINAL NOI 1,411,487 14,115 1,459,963 15 Capital Reserves 20,000 200 20,000 ECONOMIC NOI 1,391,487 13,915 1,439,963 Interest 663,828 650,663 Principal 233,392 246,557 TOTAL DEBT SERVICE 897,220 897,220 DCR 1.55 1.60 BEFORE TAX CASH FLOW 494,268 542,743 CAP RATE 8.00% 8.3% Unleveraged IRR* 11.08% 8.88% 9.8% Leveraged IRR* 23.13%

50 | Financial Analysis underwriting assumptions—short term rental

Market rent is based on the Average Daily Rate, which is conservatively based on short term rentals and the average daily rate for hotels in the Raleigh market. The Average Daily Rate also factors occupancy taxes and short term rental fees.

1 Market Rent AVG MONTHLY MARKET TOTAL TOTAL UNIT # OF EACH SF TOTAL SF PER SF DAILY RATE RATE/UNIT MONTHLY RATE ANNUAL RATE Studio (Reno) 100 225 22,500 $85 $2,585 $11. 49 $258,542 $3,102,500

The Pro Forma Year 1 Vacancy Loss is conservatively projected to be 30.0% of the Gross Potential Rent, which is conservative for hotel 2 Vacancy Loss and short term rental Vacancy in the Raleigh market .

3 Model/Office & Laundry One total unit is expected to be used as Model/Office and Laundry.

4 Other Income All Other Income line items in Pro Forma Year 1 are projected to be 1.0% of Gross Potential Rent.

Repairs & Maintenance expenses are projected to be $600 per unit, which are consistent with short term rental averages for a product 5 Repairs & Maintenance of this quality and vintage in the Raleigh market.

Cleaning Fees expenses are assumed to be $1,680 per unit with an average of 7 turns per unit per month as detailed in the chart below.

CLEANING FEES Cleaning Fees $20 6 Cleaning Fees Turns Per Month 7 Total # of Units 100 Total Cleaning Fees Per Month $14,000 Total $168,000

PULLEN STATION | 51 underwriting assumptions—short term rental

Salary & Payroll projections outlined in the following table are based on appropriate staffing levels and market average compensation standards in the Raleigh market. Leasing Bonuses are projected to be 10% of Salaries, while Benefits/Taxes are assumed to be 20% of total Payroll.

POSITION # OF EACH SALARY TOTAL ADMINISTRATION FT Leasing Agent 1 $38,000 $38,000 Bonus @ approx. 10% of Salaries $3,800 7 Salaries & Payroll Administrative Subtotal 1 $41,800 Burden (Benefits/Taxes) at 20% of Total Payroll $8,360 Total Administrative Salaries/Benefits/Taxes $50,160 MAINTENANCE & REPAIRS Maintenance Tech 1 $36,000 $36,000 Maintenance Subtotal 1 $36,000 Burden (Benefits/Taxes) at 20% of Total Payroll $7, 20 0 Total Maintenance Salaries/Benefits/Taxes $43,200 Total Payroll 2 $93,360

8 General & Admin General & Admin expenses are expected to be $125 per unit.

9 Marketing Marketing expenses are assumed to be $200 per unit.

10 Contractor Services Contractor Services are assumed to consist of landscaping and exterminating. Pro Forma Year 1 is projected to be $250 per unit.

52 | Financial Analysis underwriting assumptions—short term rental

Utility expenses typically include water, sewer, trash, electricity, and internet or cable. Pro Forma Year 1 Utility Expense is equal to the 11 Utilities trailing 12 month figure with a 2.0% rise in inflation.

Management Fee is assumed to be 10% of Effective Gross Income which is consistent with industry norms for a short term rental 12 Management Fee properties of this vintage and quality.

13 Insurance The Pro Forma Year 1 assumed an annual Insurance expense of $350 per unit.

2018 Taxable Value $2,031,700 14 Real Estate Taxes For the Pro Forma Year 1 utilized the recently released 2018 tax Wake County 13,295 bills for Pullen Station and all related parcels with an additional Raleigh City 11,950 2.0% expense increase. Recycling Fee 2,000 Total 2018 Tax Bill $27,791

$200 per unit, per year is assumed, as this is consistent with current lender requirements and capital needs for a short term rental product 15 Capital Reserves of this age and quality.

*Note: This Pro Forma does not factor in the cost of furnishing each unit.

PULLEN STATION | 53 offering details

Capstone Apartment Partners, LLC has been engaged as the exclusive listing IMPORTANT DATES Broker representative of the Owner for the sale of this property. No contact shall be made by any prospective purchaser or agents to the Owner, its executives, SCHEDULED PROPERTY TOURS staff, personnel, tenants, or related parties. Wednesday: February 20, 2019 Thursday: March 7, 2019 This Investment Offering Memorandum is a confidential solicitation of interest, and the information provided herein is provided for the sole purpose of Thursday: February 21, 2019 Wednesday: March 13, 2019 considering the purchase of the Property. The Owner expressly reserves the Thursday: February 28, 2019 Thursday: March 14, 2019 right, at its sole discretion, to reject any or all expressions of interest to purchase the Property or to terminate discussions with any entity at any time with or without notice. The Owner shall have no legal commitment or obligation to OFFERS DUE any entity reviewing the Investment Offering Memorandum or making an offer to purchase the Property unless and until the Owner executes and delivers a Wednesday: March 20, 2019 signed Purchase Agreement on terms acceptable to the Owner. By receipt of this Offering Memorandum, prospective purchaser will be deemed to have acknowledged the foregoing and agrees to release the Owner from any and ASKING PRICE AND TERMS all liability with respect hereto. TBD by Market. Free and Clear Sale. The enclosed materials are being provided solely to facilitate the prospective purchaser’s own due diligence for which the purchaser shall be fully and solely responsible. All information contained herein is confidential in nature, and SOURCES recipient agrees not to photocopy, duplicate, forward, distribute, or solicit third party interest without written permission and consent from Owner or Capstone Property images provided by Strauss Studios. Other imagery provided Apartment Partners, LLC. by: ESB Professional (p. 11 [TL]), ted (p. 11 [TR]), James Willamor (p. 11 Neither Capstone Apartment Partners, LLC nor the Owner make any [BL]), Bz3rk (p. 11 [BR]), Ron Cogswell (p. 15 [T]), Edward T Funkhouse (p. representation or warranty, express or implied, as to the accuracy or 15 [B]), NCDOTcommunications (p. 16), Aerial Photo Pros (p. 18), Sergey completeness of the information contained herein, and nothing contained herein shall be relied upon as a promise or representation as to the future Galyonkin (p. 19), Dave Cosby (p. 20) via CreativeCommons.org and performance of the Property. Shutterstock licensing.

54 | Capstone Apartment Partners contact information

BRYSE TOOTHAKER ALEX MCDERMOTT AUSTIN GREEN Senior Advisor Senior Advisor Senior Advisor direct: 704.727.2926 direct 704.533.4865 direct 704.962.7454 office: 800.746.3175 ext. 703 office 800.746.3175 ext. 700 office 800.746.3175 ext. 701 [email protected] [email protected] [email protected]

For more information regarding this property, please visit: CAPSTONEAPTS.LISTINGLAB.COM/PULLENSTATION

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PULLEN STATION | 55