1309 North Meridian Avenue Oklahoma City, Oklahoma 73107 114 Multifamily Units Proximate to Major Arterials

• Convenient drive times to retail, entertainment, and casual dining

• Less than ten minutes from Southern Nazarene University and OSU-OKC

• Proximate to major arterials with access to chief employers across Oklahoma City OFFER SOLICITATION PROCESS PROPERTY VISITATION Prospective purchasers will have the opportunity to visit Meridian Mansions (Property) via pre-scheduled property tours. These tours CONTACT INFORMATION will include access to a representative sampling of units and access OKLAHOMA CITY OFFICE to common areas and other similar facilities. In order to accommodate 204 North Robinson the Property’s ongoing operations, property visitation will require advance notice and scheduling. Suite 700 Oklahoma City, OK 73102 T 405-602-3040 OFFER SUBMISSION Offers should be presented in the form of a non-binding Letter of Intent, spelling out the significant terms and conditions of Purchaser’s offers including, but not limited to (1) asset pricing, (2) due diligence Justin Wilson and closing time frame, (3) Earnest Money deposit, (4) a description T 405-605-2546 of the debt / equity structure, and (5) qualifications to close. The [email protected] purchase terms shall require that all cash be paid at closing. Offers should be delivered to the attention of one of the brokers at the email addresses listed. Ted Prince T 405-630-0862 FINANCING [email protected] For parties interested in receiving debt quotes, ARA facilitates agency, life company, bank, bridge, and mezzanine financing options for the acquisition of Meridian Mansions. Tim McKay T 405-879-4768 Braden Harmon [email protected] T 214-415-4938 [email protected]

Hank Glasgow Brandon Lamb, CCIM T 214-420-3108 T 918-551-7600 [email protected] [email protected]

Oklahoma City ranks #8 in “Top 10 Metros for Millennials” (September 2017)

ACCORDING TO

2 CONFIDENTIAL OFFERING MEMORANDUM MERIDIAN MANSIONS APARTMENTS 1309 North Meridian Avenue | Oklahoma City, Oklahoma 73107 Oklahoma County

INVESTMENT SUMMARY PROPERTY SUMMARY

PRICE $3,870,000 YEAR OF CONSTRUCTION 1965 TERMS All Cash AVERAGE UNIT SIZE 821 SF PRICE PER SF $41.34 AVERAGE MARKET RENT PER UNIT $662 PRICE PER UNIT $33,947 AVERAGE MARKET RENT PER SF $0.81 TOTAL NUMBER OF UNITS 114 TOTAL NET RENTABLE SF 93,625 OCCUPANCY (OCTOBER 2017) 85.1% Physical

3 LAKE HEFNER 77 GOLF CLUB OKLAHOMA PENN SQUARE MALL CITY GOLF COUNTRY WILEY CLUB 44

® POST BAPTIST AIRPORT MEDICAL CENTER DOLESE YOUTH 3A ALLIANCEHEALTH OKLAHOMA PARK DEACONESS CITY ZOO

HISTORIC ROUTE 74 HISTORIC LINCOLN 66 ROUTE PARK ELDON LYON 66 GOLF COURSE LAKE PARK OVERHOLSER 77 44

KINDRED HOSPITAL VETERANS AFFAIRS OKLAHOMA CITY MEDICAL CENTER OU MEDICAL HEALTH SERVICES CENTER THE OUTLET SHOPPES 3 AT OKLAHOMA CITY ST. ANTHONY HOSPITAL 235 JAMES E. STATE FAIR STEWART GOLF PARK COURSE

270 40 270 40 CBD 270 62

TROSPER PARK GOLF COURSE

44 TROSPER PARK 35 152

A 114-UNIT MULTIFAMILY INVESTMENT OPPORTUNITY 3 EXECUTIVE SUMMARY ARA, A Newmark Company is pleased to present Gap, and Banana Republic. In addition, families with Meridian Mansions in Oklahoma City, Oklahoma. Built children will be attracted to the property’s location to in 1965 and featuring 114 units, this property affords schools within the Putnam City School District. tenants a wide range of apartment and townhome floor plans with desirable amenities including a swimming The Oklahoma City economy continues to support pool, two laundry centers, and a club room with HDTV, strong apartment fundamentals, with the U.S. Bureau fireplace, hostess kitchen, and pool table. Interior unit Labor of Statistics indicating steady job growth in the finish-outs include lighted ceiling fans, vertical blinds, Professional and Business Services sector at 13.2% and white appliance package, and faux wood flooring in the Financial Activities sector at 5.4%. Oklahoma City’s select units. The property has been well-maintained unemployment rate is 4.1% and continuing to track with all roofs replaced in 2013 and all cable-ready and below the national rate of 4.4%. Significant projects broadband-ready units. driving the local economy include the OKC Streetcar project ($131.8 million), the 31-story First National Meridian Mansions’ close proximity to Interstates 44 Center renovation ($230 million), and the Downtown and 40 provides short commute times to the wider Convention Center and Hotel. Combined, these secure employment and leisure opportunities across the OKC Oklahoma City’s position as a prime destination for metro. Nearby major employers include the FAA / Mike working professionals and millennials entering the Monroney Aeronautical Center, Dell Oklahoma City marketplace. campus, UPS Customer Center, and Terex USA. This property also enjoys short commute times to top retailers Meridian Mansions’ advantageous location combined and businesses along both Interstates including the with positive submarket fundamentals have created an Outlet Shoppes of OKC featuring Ralph Lauren, Coach, attractive asset for investors seeking to enter or expand their presence in Oklahoma City.

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4 CONFIDENTIAL OFFERING MEMORANDUM PROPERTY INFORMATION

YEARS BUILT 1965 NO. OF BUILDINGS 14 Total Buildings • 1 Two-story Leasing Office / Club Room / Laundry Center / LAND SIZE 4.47 Acres Maintenance • 1 Two-story Residential Building / DENSITY 22.37 Units per Acre Fitness Room (closed) • 1 Two-story Residential Building / Laundry Center ZONING R-4; General Residential • 11 Two-story Residential Buildings

MECHANICAL SCHOOL DISTRICT Putnam City Public Schools SYSTEM / UTILITIES • Hilldale Elementary School Electric Metering Individual; resident pays directly (pre-K through grade 5) 0.5 mile to provider • Mayfield Middle School HVAC Boiler / chiller, electric (grades 6 through 8) 1.1 miles baseboard heaters • Putnam City West High School (grades 9 through 12) 4.1 miles Hot Water Boiler Water / Sewer / Master; owner pays PERSONNEL 3.5 Total Employees Trash Billing • 1 Property Manager Gas Meter Yes; for boiler • 0.5 Leasing Agent (part-time) Pest Fee None • 1 Cleaning Specialist • 1 Maintenance Technician CONSTRUCTION EMPLOYEE UNITS 1 Unit Style Garden • Unit No. 160 – 2 BR / 1.5 BA, T @ Brick / Siding Exterior 1,250 SF (manager discount @ Roof Pitch; Composition Shingle 100% per month)

PARKING 164 Total Spaces MODEL UNITS None • 134 Assigned Covered Spaces (one per 1 BR, two per 2 BR, NON- OR REDUCED- 1 Unit included in lease) REVENUE UNITS • Unit No. 144 – 1 BR / 1 BA @ 700 SF • 30 Open Spaces (used as a fitness room)

A 114-UNIT MULTIFAMILY INVESTMENT OPPORTUNITY 5 UNIT MIX

AVERAGE AVERAGE # OF % OF UNIT TOTAL BED / BATH MARKET RENT MARKET RENT UNITS TOTAL SIZE SF UNIT SF PER MO. PER SF

1 1 BR / 1 BA 0.9% 575 575 $575 $1.00 10 1 BR / 1 BA 8.8% 600 6,000 $599 $1.00 7 1 BR / 1 BA 6.1% 650 4,550 $604 $0.93 34 1 BR / 1 BA 29.8% 700 23,800 $624 $0.89 39 1 BR / 1 BA 34.2% 800 31,200 $637 $0.80 2 1 BR / 1 BA, F 1.8% 825 1,650 $700 $0.85 1 1 BR / 1 BA 0.9% 850 850 $685 $0.81 20 2 BR / 1.5 BA, T 17.5% 1,250 25,000 $825 $0.66 114 100.0% 821 93,625 $662 $0.81

F = Fireplace | T = Townhome

TOTALS / AVERAGES CURRENT CONCESSIONS

Total # of Units 114 None Net Rentable SF (approximate) 93,625 Scheduled Monthly Rent $75,455 Average Market Rent/Month $662 CURRENT OCCUPANCY Average Market Rent/SF $0.81 85.1% – Physical | October 2017 Average Unit Size 821 SF

BY UNIT TYPE BY UNIT SIZE

18% 17% 16%

30% 82% 37%

1 Bedroom < 700 SF 2 Bedroom 700 – 799 SF 800 – 899 SF > 1,000 SF 6 CONFIDENTIAL OFFERING MEMORANDUM SELECT FLOOR PLANS

ENTRY

CLOSET CLOSET

BEDROOM BEDROOM BATH

BATH

LINEN CLOSET PAN KITCHEN

LIVING KITCHEN LIVING

DINING

ENTRY ENTRY 1 BR / 1 BA 1 BR / 1 BA 600 SF 800 SF

CLOSET PATIO

BEDROOM CLOSET

LIVING BEDROOM BATH BATH CLOSET DINING DINING CLOSET LIN CLOSET

PANTRY DOWN LIVING KITCHEN KITCHEN BATH BEDROOM

UP CLOSET CLOSET ENTRY ENTRY 1st FLOOR 2nd FLOOR 2 BR / 1.5 BA, T 1 BR / 1 BA 1,250 SF 825 SF

A 114-UNIT MULTIFAMILY INVESTMENT OPPORTUNITY 7

SITE PLAN NORTHAVENUE MERIDIAN GATE GATE

LEASING CENTER / CLUB ROOM LAUNDRY CENTER MAINTENANCE / MECHANICAL FITNESS ROOM (CLOSED FOR UPGRADES) MAIL CENTER SWIMMING POOL PET AREA BBQ AREA PICNIC AREA Oklahoma City ranks #1 best large city to start a business (September 2017)

ACCORDING TO

8 CONFIDENTIAL OFFERING MEMORANDUM COMMUNITY AMENITIES • Leasing Center / Club Room >> Management Offices >> Leasing Desk >> Laundry Card Terminal >> Fireplace >> HDTV >> Multiple Conversation Areas >> Hostess Kitchen >> Coffee Bar >> Game Area with Pool Table • Laundry Centers (2) >> Card Payment System • Fitness Room (closed for upgrades) >> Cardio Equipment >> Free Weights • Mail Center • Swimming Pool >> Sunning Deck with Lounge Chairs • Community Courtyards with Mature Trees • BBQ Area • Picnic Area • Pet Area • Covered Parking (assigned, included with lease) • Limited Access Gates

A 114-UNIT MULTIFAMILY INVESTMENT OPPORTUNITY 9 INTERIOR APPOINTMENTS • Deadbolt and Viewer on Entry Door • Miniblinds • Vertical Blinds • Living Area and Master Bedroom Prewired for Cable TV • Faux Wood Flooring in Entry, Kitchen, and Bathroom(s) * • Carpeted Living and Dining Areas • Lighted Ceiling Fan in Dining Area * • Linen Closet * • Patio *

KITCHEN, BED, AND BATH CONVENIENCES • White Appliance Package >> Frost-free Refrigerator >> Multi-cycle Dishwasher >> Self-cleaning Oven * • Stainless Steel Double Sink with Garbage Disposal • Carpeted Bedroom(s) • Medicine Cabinet * • Spacious Closets * select units

10 CONFIDENTIAL OFFERING MEMORANDUM

A 114-UNIT MULTIFAMILY INVESTMENT OPPORTUNITY 11 PROFORMA

ANNUALIZED PER SF PER UNIT REVENUE Gross Scheduled Rent (1) $928,097 $9.91 $8,141 Vacancy Loss (7%) ($64,967) ($0.69) ($570) Non-Revenue Units (1.32%) ($12,251) ($0.13) ($107) Collection Loss (0.5%) ($4,640) ($0.05) ($41) Concessions (0.5%) ($4,640) ($0.05) ($41) Total Rental Income $841,598 $8.99 $7,382 RUBS Income (2) $3,960 $0.04 $35 Other Income (2) $59,423 $0.63 $521 Total Other Income $63,383 $0.68 $556 EFFECTIVE GROSS INCOME $904,980 $9.67 $7,938 OPERATING EXPENSES Controllable Expenses Repairs and Maintenance ($57,000) ($0.61) ($500) Turnover ($11,400) ($0.12) ($100) Trash ($9,120) ($0.10) ($80) Payroll ($114,000) ($1.22) ($1,000) Administrative ($11,400) ($0.12) ($100) Marketing ($26,790) ($0.29) ($235) Electricity (3) ($118,740) ($1.27) ($1,042) Utilities (3) ($116,008) ($1.24) ($1,018) Total Variable Expenses ($464,458) ($4.96) ($4,074) Real Estate Tax (4) ($43,432) ($0.46) ($381) Insurance ($36,480) ($0.39) ($320) Management Fee ($36,199) ($0.39) ($318) Total Operating Expenses ($580,569) ($6.20) ($5,093) Capital Reserves ($34,200) ($0.37) ($300) TOTAL EXPENSES ($614,769) ($6.57) ($5,393) NET OPERATING INCOME $290,211 $3.10 $2,546

(1) GSR grown 2.5% from the Unit Mix (2) RUBS Income set equal to September 2017 T-3 Annualized, Other Income grown 3% from September 2017 T-12 Actual (3) Utilities grown 3% from September 2017 T-12 Actual (4) Real Estate Tax = 85% of List Price x 2016 Tax Rate

Note: Actual numbers are based upon financial information provided by the client. Buyers are advised to consult their tax counsel with regard to tax matters.

12 CONFIDENTIAL OFFERING MEMORANDUM TAX INFORMATION

TAX RATE PER ACCOUNT INFORMATION $1,000 of AV Account No. R147854410

Market Value $2,214,400 Taxable Market Value $1,786,790 Land Value $389,800 2017 Gross Assessed Value $196,546

Preliminary 2017 Taxes Oklahoma City $2,911 $14.81 Putnam City #1 $12,917 $65.72 Francis Tuttle Tech Center #21 $3,084 $15.69 Oklahoma County $4,680 $23.81 Preliminary 2017 Tax Bill * $23,591 $120.03

* Using 2016 Tax Rate DEPOSITS & FEES

Application Fee $35 per applicant Security Deposit $250 (1 BR), $350 (2 BR) Administration Fee None Transfer Fee $150 Pet Deposit $250 per pet Pet Fee (non-refundable) $250 per pet Additional Pet Rent None

A 114-UNIT MULTIFAMILY INVESTMENT OPPORTUNITY 13 AREA DEMOGRAPHICS

SOURCE: 2017 ESRI 1-MILE RADIUS 3-MILE RADIUS 5-MILE RADIUS

2010 Population Census 13,661 80,975 200,045

2017 Population Estimate 14,920 89,384 217,879

2022 Population Projection 15,771 94,755 230,174

Population Growth Annual Rate 2017 – 2022 1.12% 1.17% 1.10%

2017 Estimated Median Age 32.3 34.1 34.2

Renter Occupied Percentage 48.5% 44.8% 45.0%

2017 Estimated Average Household Income $44,572 $51,170 $55,774

2017 Estimated Average Owner-Occupied Housing Value $110,221 $125,071 $139,619

Total Number of Businesses 435 4,154 11,662

Total Number of Employees 4,390 59,032 172,977

2017 Population Estimate 1-MILE RADIUS 14,920 Avg Home Value $110,221 Total Number of Employees 2017 Population Estimate 3-MILE RADIUS 4,390 89,384 Avg Home Value $125,071 Total Number of Employees 59,032 5-MILE RADIUS

2017 Population Estimate 217,879 Avg Home Value $139,619 Total Number of Employees 172,977 Source: Esri 2017

14 CONFIDENTIAL OFFERING MEMORANDUM RENT COMPARABLES SUMMARY

YEAR # OF TOTAL AVERAGE MARKET MARKET EFFECTIVE EFFECTIVE CURRENT PROPERTY BUILT UNITS NRA SF UNIT SIZE RENT RENT PSF RENT RENT PSF OCCUPANCY 1 Arbor Glen 1970 96 87,512 912 $586 $0.64 $586 $0.64 93.8% 4638 Northwest 19th Street

2 Heritage House II 1968 111 119,276 1,075 $628 $0.58 $628 $0.58 81.0% 1307 North Meridian Avenue 3 Mira Vista * 1969 130 113,100 870 $583 $0.67 $583 $0.67 79.5% 4750 Northwest 23rd Street 4 The Brittany 1970 110 117,920 1,072 $593 $0.55 $593 $0.55 95.5% 2626 North Meridian Avenue

5 Verde Vista * 1971 111 100,800 908 $591 $0.65 $591 $0.65 79.3% 4746 Northwest 23rd Street 6 Windsor Village 1969 363 337,304 929 $538 $0.58 $501 $0.54 95.0% 2500 North Sterling Avenue Totals / Averages 921 875,912 951 $573 $0.60 $559 $0.59 89.2%

Meridian Mansions 1965 114 93,625 821 $662 $0.81 $680 $0.82 85.1% 1309 North Meridian Avenue

* Property currently under renovation Effective Rents calculated as Market Rent minus Concessions Source: ALN, YardiMatrix, CoStar, Axiometrics D E E R U U A N V N E E V E L NW 26TH STREET V A A

N E O R B O U A

I C B

R A D I L 4 A R

H U

N 6 WINDSOR HILLS R R

SHOPPING CENTER M E R A A N

O S N C

N D A

I M

W N

NW 23RD STREET NW 23RD STREET

3 5

MACARTHUR PARK

SHOPPING CENTER

NW 19TH STREET NW 19TH STREET

LELA HARLOW 1

PARK PARK

NW 16TH STREET NW 16TH STREET

MERIDIAN JEFFREY

PLAZA PARK

D R

V U E E E L U E N V

A CORBIN

V E N B O U

A PARK R O H U I A N R B R T A 2 A N E R I D C A M A N M N N

NW 10TH STREET NW 10TH STREET

A 114-UNIT MULTIFAMILY INVESTMENT OPPORTUNITY 15 RENT COMP NO. 1 Arbor Glen

ADDRESS 4638 Northwest 19th Street CITY, STATE, ZIP Oklahoma City, OK 73127 NO. OF UNITS 96 AVG UNIT SIZE 912 SF YEAR BUILT 1970 CURRENT OCCUPANCY 93.8% CURRENT CONCESSION None AVG MARKET RENT PER MONTH $586 AVG MARKET RENT PER SF $0.64

AVERAGE AVERAGE AVERAGE AVERAGE AVERAGE NO. % OF MARKET RENT EFFECTIVE RENT BED / BATH UNIT SIZE MARKET RENT EFFECTIVE RENT UNITS TOTAL PER SF PER SF (SF) PER MONTH PER MONTH PER MONTH PER MONTH

1 BR / 1 BA 46 47.9% 800 $525 $0.66 $525 $0.66

2 BR / 1 BA 46 47.9% 1,000 $637 $0.64 $637 $0.64

2 BR / 1.5 BA 4 4.2% 1,178 $695 $0.59 $695 $0.59

96 100.0% 912 $586 $0.64 $586 $0.64

COMMUNITY AMENITIES • Clubhouse • Laundry Center • Swimming Pool • BBQ Grills

UNIT AMENITIES • Tile Flooring in Living and Dining Area • Miniblinds • Ceiling Fan in Dining Area • Medicine Cabinet • White Appliance Package

16 CONFIDENTIAL OFFERING MEMORANDUM RENT COMP NO. 2 Heritage House II

ADDRESS 1307 North Meridian Avenue CITY, STATE, ZIP Oklahoma City, OK 73107 NO. OF UNITS 111 AVG UNIT SIZE 1,075 SF YEAR BUILT 1968 CURRENT OCCUPANCY 81.0% CURRENT CONCESSION None AVG MARKET RENT PER MONTH $628 AVG MARKET RENT PER SF $0.58

AVERAGE AVERAGE AVERAGE AVERAGE AVERAGE NO. % OF MARKET RENT EFFECTIVE RENT BED / BATH UNIT SIZE MARKET RENT EFFECTIVE RENT UNITS TOTAL PER SF PER SF (SF) PER MONTH PER MONTH PER MONTH PER MONTH 1 BR / 1 BA 10 9.0% 550 $525 $0.95 $525 $0.95 1 BR / 1 BA 10 9.0% 660 $575 $0.87 $575 $0.87 2 BR / 1.5 BA, L 16 14.4% 1,065 $585 $0.55 $585 $0.55 2 BR / 1 BA 35 31.5% 1,100 $595 $0.54 $595 $0.54 2 BR / 1 BA 16 14.4% 1,386 $751 $0.54 $751 $0.54 2 BR / 1.5 BA, T 12 10.8% 1,215 $650 $0.53 $650 $0.53 2 BR / 2 BA, T 12 10.8% 1,240 $726 $0.59 $726 $0.59 111 100.0% 1,075 $628 $0.58 $628 $0.58

L = Loft | T = Townhome

COMMUNITY AMENITIES • Leasing Office • Swimming Pool • Covered Parking

UNIT AMENITIES • Carpet in Living, Dining, and Bedroom(s) • Double Sink Vanity * • Lighted Ceiling Fan in Dining Area and Bedroom(s) • Spacious Closets • White Appliance Package * select units • Double Stainless Steel Sink

A 114-UNIT MULTIFAMILY INVESTMENT OPPORTUNITY 17 RENT COMP NO. 3 Mira Vista *

ADDRESS 4750 Northwest 23rd Street CITY, STATE, ZIP Oklahoma City, OK 73127 NO. OF UNITS 130 AVG UNIT SIZE 870 SF YEAR BUILT 1969 CURRENT OCCUPANCY 79.5% CURRENT CONCESSION None AVG MARKET RENT PER MONTH $583 AVG MARKET RENT PER SF $0.67 * Property currently under renovation

AVERAGE AVERAGE AVERAGE AVERAGE AVERAGE NO. % OF MARKET RENT EFFECTIVE RENT BED / BATH UNIT SIZE MARKET RENT EFFECTIVE RENT UNITS TOTAL PER SF PER SF (SF) PER MONTH PER MONTH PER MONTH PER MONTH

1 BR / 1 BA 65 50.0% 765 $510 $0.67 $510 $0.67

2 BR / 1 BA 65 50.0% 975 $655 $0.67 $655 $0.67

130 100.0% 870 $583 $0.67 $583 $0.67

COMMUNITY AMENITIES • Leasing Office • Swimming Pool

UNIT AMENITIES • Deadbolt and Viewer on Entry Door • White Appliance Package • Ceramic Tile in Living and Dining Areas, Kitchen, • Carpeting in Bedroom(s) and Bathroom * • Spacious Closets • Lighted Ceiling Fan in Dining Area and Bedroom(s) * • Balcony or Patio * • Miniblinds * select units

18 CONFIDENTIAL OFFERING MEMORANDUM RENT COMP NO. 4 The Brittany

ADDRESS 2626 North Meridian Avenue CITY, STATE, ZIP Oklahoma City, OK 73107 NO. OF UNITS 110 AVG UNIT SIZE 1,072 SF YEAR BUILT 1970 CURRENT OCCUPANCY 95.5% CURRENT CONCESSION None AVG MARKET RENT PER MONTH $593 AVG MARKET RENT PER SF $0.55

AVERAGE AVERAGE AVERAGE AVERAGE AVERAGE NO. % OF MARKET RENT EFFECTIVE RENT BED / BATH UNIT SIZE MARKET RENT EFFECTIVE RENT UNITS TOTAL PER SF PER SF (SF) PER MONTH PER MONTH PER MONTH PER MONTH

1 BR / 1 BA 42 38.2% 900 $535 $0.59 $535 $0.59

2 BR / 1 BA 30 27.3% 1,100 $595 $0.54 $595 $0.54

2 BR / 2 BA 38 34.5% 1,240 $655 $0.53 $655 $0.53

110 100.0% 1,072 $593 $0.55 $593 $0.55

COMMUNITY AMENITIES • Clubhouse • Laundry Room • Swimming Pool

UNIT AMENITIES • Ceiling Fan in Dining Area • Miniblinds • White Appliance Package • Fireplace *

* select units

A 114-UNIT MULTIFAMILY INVESTMENT OPPORTUNITY 19 RENT COMP NO. 5 Verde Vista *

ADDRESS 4726 Northwest 23rd Street CITY, STATE, ZIP Oklahoma City, OK 73127 NO. OF UNITS 111 AVG UNIT SIZE 908 SF YEAR BUILT 1971 CURRENT OCCUPANCY 79.3% CURRENT CONCESSION None AVG MARKET RENT PER MONTH $591 AVG MARKET RENT PER SF $0.65 * Property currently under renovation

AVERAGE AVERAGE AVERAGE AVERAGE AVERAGE NO. % OF MARKET RENT EFFECTIVE RENT BED / BATH UNIT SIZE MARKET RENT EFFECTIVE RENT UNITS TOTAL PER SF PER SF (SF) PER MONTH PER MONTH PER MONTH PER MONTH

1 BR / 1 BA 33 29.7% 750 $510 $0.68 $510 $0.68

2 BR / 1 BA 78 70.3% 975 $625 $0.64 $625 $0.64

111 100.0% 908 $591 $0.65 $591 $0.65

COMMUNITY AMENITIES • Leasing Office • Laundry Room • Clubhouse • Swimming Pool

UNIT AMENITIES • Carpeting in Living Room and Bedroom(s) * • White Appliance Package • Lighted Ceiling Fan in Dining Room and Bedroom(s) * • Spacious Closets • Miniblinds • Balcony or Patio • Vertical Blinds * select units

20 CONFIDENTIAL OFFERING MEMORANDUM RENT COMP NO. 6 Windsor Village

ADDRESS 2500 North Sterling Avenue CITY, STATE, ZIP Oklahoma City, OK 73127 NO. OF UNITS 363 AVG UNIT SIZE 929 SF YEAR BUILT 1969 CURRENT OCCUPANCY 95.0% First month rent free with CURRENT CONCESSION 12-month lease AVG MARKET RENT PER MONTH $538 AVG MARKET RENT PER SF $0.58

2 BR / 1 BA 120 33.1% 849 $489 $0.58 $457 $0.54

3 BR / 2 BA 60 16.5% 1,056 $679 $0.64 $631 $0.60

2 BR / 2.5 BA, T 40 11.0% 1,292 $529 $0.41 $493 $0.38

3 BR / 3 BA, T 40 11.0% 1,444 $759 $0.53 $704 $0.49

363 100.0% 929 $538 $0.58 $501 $0.54

T = Townhome

COMMUNITY AMENITIES • Leasing Office • Swimming Pool • Fitness Center • Children's Playground • Laundry Facility

UNIT AMENITIES • Miniblinds • Built-in Shelving • Vertical Blinds • Spacious Closets • Pass-through Kitchen • Balcony or Patio * • White Appliance Package * select units • Double Stainless Steel Sink with Vegetable Sprayer

A 114-UNIT MULTIFAMILY INVESTMENT OPPORTUNITY 21 OKC is also home to the Myriad Botanical Gardens, the Oklahoma City National Memorial, and the OKC Museum of Art. The area further benefits from Devon The Greater Oklahoma City Metro Area includes 10 Energy’s $750 million counties and more than 1.4 million people. The area headquarters, completed boasts varied terrain, abundant recreation, and a in 2012, bringing nearly plethora of arts and entertainment venues. The city is 2,200 employees and often described as a pleasant blend of cosmopolitan and contractors to the country. With a population of over 665,000, Oklahoma area. Scheduled to be City is a sprawling state capital encompassing more than completed early 2018, the 700,000-SF, 27-story BOK 620 square miles — the country’s largest city in terms of Park Plaza is the newest downtown office tower; Devon area. Oklahoma City is the seat of Oklahoma County and Energy and the Bank of Oklahoma will be the anchor one of the larger cities in the Great Plains region. Thanks tenants with retail on the first floor. In 2009, voters to a recent citywide revitalization effort, downtown approved a $777 million initiative that will bring a Oklahoma City now boasts the nation’s premier minor- convention center, streetcar line, and other projects league ballpark — the Chickasaw Bricktown Ballpark, to the city in 2018, generating an estimated 25,000 and the navigable Bricktown Canal that flows beside new jobs — including the 70-acre Scissortail Park choice restaurants, shops, and cafés in the historic that will feature a great lawn, 3.5-acre lake for paddle entertainment district. The Bricktown Entertainment boating and a number of walking and biking trails. The District is the fastest-growing entertainment district in overwhelming popularity of the NBA’s Oklahoma City the region and one of the most popular destinations in Thunder has also had a tremendous impact on economic the state. Bricktown is home to dozens of restaurants, development. Forbes currently values the team at over dance clubs, live music venues, upscale retail shops, $1 billion with projected 2017 revenues of $187 million; and offices. A state-of-the-art whitewater rafting and this figure does not include employment at the arena, kayak center was completed in May 2016 along the restaurants, and hotels that can be attributed to the Oklahoma River, just south of Bricktown. games. It also does not calculate the impact of positive

22 CONFIDENTIAL OFFERING MEMORANDUM national and international coverage for the city like the 2017 NBA MVP Russell Westbrook who scored 42 triple- Oklahoma City ranks #8 on doubles for the 2016-2017 season. In August 2017, the “Most Popular U.S. city’s unemployment rate was 4.3%, making it lower than the national rate for the same month. Cities to Live” list (September 2017) POPULATION Oklahoma City has seen immense growth over the past decade. Its population has grown by 12.5% (more than double the national average) since the 2010 Census. The U.S. Census Bureau Analytics forecasts that OKC’s ACCORDING TO population growth will grow by 1.47% annually in the next five years and exceed 1.5 million by 2022. Oklahoma Greater Oklahoma City Chamber. In 2015, the Oklahoma City MSA’s median age is 36 years, which is in-line with Medical Research Foundation was designated an the key renter demographic. Autoimmunity Center of Excellence, one of only 10 sites in the country. The 27-acre, $100 million University Research Park, part of the Oklahoma Health Center OKLAHOMA CITY MSA POPULATION Complex, is home to 37 science–based companies. 1,600,000 ,, ,, 1,400,000 Leading employment sectors include government ,, 1,200,000 ,, (20%), trade / transportation / utilities (18%), education 1,000,000 and health (15%), and business services (13%). 800,000 The city is the seat of government for the state, the 600,000 county, and many regional federal agency offices. The 400,000 energy industry makes up less than 3% of the metro’s 200,000 employment base. 0 2000 2010 2017 2022 Source: U.S. Census Bureau, 2010 Census Proﬁle, Esri Forecasts for 2017 and 2022 TOTAL EMPLOYMENT BY INDUSTRY 2.5% 1.4% 4% Government 4.5% 19.9% Trade, Transportation, and Utilities Education and Health Services 5.3% ECONOMY I EMPLOYMENT Professional and Business Services 5.4% Leisure and Hospitality Historically known for its oil and gas industry, Oklahoma Manufacturing City’s economy has become much more diversified. Major Construction Financial Activities industries such as aerospace, biotech, government, 11.8% 17.6% Other energy, healthcare, and professional services make up Natural Resources and Mining Information the economy. Only two of the largest twenty employers 13.2% Source: ureau of Labor Statistics, August 2017 OKC MSA 14.5% are oil and gas firms. Oklahoma City is also home to Love’s Travel Stops, Hobby Lobby, Paycom, and Tinker Not surprisingly, the area’s corporate presence is Air Force Base (the largest single-site employer in the impressive, with companies operating in the area state). including Boeing, Baker Hughes, Sprint, The Hartford, The area’s flourishing bioscience industry contributes and Dell Computers. Devon Energy, Chesapeake Energy, more than $6.7 billion in economic activity, supports Hobby Lobby, Love’s, Sonic, Paycom, and Kerr-McGee more than 51,000 jobs across the state, and has annual (now SandRidge Energy) were all founded and remain revenues of more than $4.1 billion, according to the headquartered in the greater metro area.

A 114-UNIT MULTIFAMILY INVESTMENT OPPORTUNITY 23 Tinker Air Force Base, also known as Oklahoma City the research and development of commercial uses Air Logistics Center (OC-ALC), the metro area’s second for unmanned aircraft development. Oklahoma State largest employer, is located in the suburb of Midwest University established the world’s first university City. Tinker AFB is the state’s largest industrial operation graduate degree in Unmanned Aerial Systems. and home to seven major Department of Defense, Air Force, and Navy activities with critical national defense Oklahoma’s Indian gaming industry brings more than missions. The base has an estimated 24,000 military $7.2 billion to the state’s economy each year in direct and civilian employees and is the largest single-site and indirect costs and supports more than 48,000 employer in Oklahoma. Tinker AFB covers 5,033 acres jobs, according to a new economic impact study from and has 760 buildings, with over 15.2 million SF of the Oklahoma Indian Gaming Association. In 2015 there space. were 45.9 million visits to Oklahoma Indian casinos, with 18.7 million of the visits from out of state. Across the state there are 130 Indian gaming facilities operated by 31 tribes.

Home to more equine events than any other city in the world, Oklahoma City is known as the “Horse Show Capital of the World”. The Oklahoma equine industry is a key economic generator, accounting for estimated combined direct, indirect, and induced revenues of $3.6 billion and supporting 35,000 full- In 2015, Tinker Air Force Base took possession of the time jobs. Approximately 85% of the total derives from 158-acre site that was once a BNSF railyard. The $44 the contributions of showing, rodeo, and recreational million acquisition will be home to a maintenance activities with racing accounting for the balance. The base for the KC-46A Pegasus, a next-generation Boeing city is also one of the nation’s largest processing centers tanker in the final stages of certification. The KC-46A for a variety of farm products and is home to the world’s program is expected to employ more than 1,300 people largest stocker and feeder cattle market. when construction is completed in early 2018. Altus Air Force Base in southwest Oklahoma, was chosen as the training site for the KC-46A when the first 18 aircraft deliver by March 2018. Tinker is also home to Boeing’s 300,000-SF Aircraft Modernization and Sustainment Headquarters, which employs over 900 people with an average annual salary of $92,000.

Oklahoma has been one of the world’s major aerospace Sources: http://www.greateroklahomacity.com,http://www.af.mil/ industry centers since World War II. Clyde Cessna began News/A rticleDisplay/tabid/223/Article/484782/air-force-movescloser- to-kc-46a-beddown.aspx, http://www.military.com/equipment/kc-46a- testing aircraft in the state during the early decades tanker, http://www.greateroklahomacity.com/clientuploads/sellingokc/ OKCDowntownCommercialRealEst ateFacts.pdf, http://aviationweek. of the 20th century. Throughout the state there are com/shownews/boeing-expansion-latest-win-oklahoma, http://kfor. more than 500 aerospace companies contributing com/2013/10/17/large-scale-development-planned-for-northwest-okc/, http://www.okcchamber.com/index.php?src=news&refno=1128&category over $12.5 billion to the state’s economy. Oklahoma =Chamber%20News, http://www.greateroklahomacity.com/clientuploads/ pdf/EconomicIndicators/GOKCEconomicForec ast2015-web.pdf, http:// City’s Federal Aviation Administration Mike Monroney www.tulsaworld.com/news/state/oklahoma-gaming-revenue-up-three- Aeronautical Center is the central training and support percent-during-statewide-recession/article_3d76d7c2-6436-59a3-bf32- 858736d0a0e8.html, http://oiga.org, ESRI, https://www.census.gov/ facility in the U.S. for the FAA and the U.S. Department quickfacts/table/PST045215/4055000, http://www.pressreader.com/usa/ the-oklahoman/20170406/282239485479186, https://www.forbes.com/ of Transportation. The center trains more than 20,000 teams/oklahoma-city-thunder/, http://factsheets.okstate.edu/documents/ students each year. Additionally, Oklahoma is leading cr-3987-oklahoma-horse-industry-trends/, https://www.bls.gov/eag/eag. ok_oklahomacity_msa.htm

24 CONFIDENTIAL OFFERING MEMORANDUM OKC MAJOR EMPLOYERS FORTUNE # OF # COMPANY HQ 500 EMPLOYEES SECTOR 1 State of Oklahoma 45,600 Government 2 Tinker Air Force Base 24,000 Military 3 University of Oklahoma - Norman 12,700 Higher Education 4 FAA Mike Monroney Aeronautical Center 7,000 Aerospace 5 INTEGRIS Health ✓ 6,000 Healthcare 6 Hobby Lobby Stores Inc. ✓ 5,100 Wholesale & Retail 7 University of Oklahoma Health Sciences Center 5,000 Higher Education 8 Oklahoma City Public Schools 5,000 Education 9 City of Oklahoma City 4,700 Government 10 Mercy Hospital ✓ 4,500 Healthcare 11 OGE Energy Corp. ✓ 3,400 Utility 12 OU Medical Center 3,200 Healthcare 13 SSM Health Care of Oklahoma, Inc. ✓ 3,000 Healthcare 14 University of Central Oklahoma 3,000 Higher Education 15 Norman Regional Hospital 2,950 Healthcare 16 AT&T ★ 2,700 Telecommunications 17 The Boeing Company ★ 2,600 Aerospace 18 Devon Energy Corp. ✓ ★ 2,500 Oil & Gas 19 Chesapeake Energy Corp. ✓ ★ 2,500 Oil & Gas 20 Sonic Corp. ✓ 2,460 Wholesale & Retail 21 Oklahoma City Community College 2,100 Higher Education 22 Dell ★ 1,800 Sales & Business Services 23 UPS ★ 1,800 Transportation 24 Hertz Corporation ★ 1,700 Rental Services 25 Love's Travel Stops & Country Stores ✓ 1,700 Retail 26 American Fidelity ✓ 1,650 Finance/Insurance

✓ Indicates headquarters in metro area; employee counts subject to change. ★ Indicates Fortune 500 company, subject to change. Source: Oklahoma Department of Commerce, The Greater Oklahoma City Partnership, Fortune.com/Fortune500/list, and Oklahoma City Public Schools (2017) 2015-2016 OKCPS Statistical Profile

Oklahoma City in Top 25 “Best Cities for Jobs” (September 2017)

ACCORDING TO

A 114-UNIT MULTIFAMILY INVESTMENT OPPORTUNITY 25 DISCLAIMER

Prospective purchasers are hereby advised the Owner (“Owner”) of Meridian Mansions (“Property”) is soliciting offers through ARA, A Newmark Company (“ARA”), which may be accepted or rejected by the Owner at the Owner’s sole discretion.

Any solicitation of an offer for the Property offered hereunder will be governed by this Offering, as it may be modified or supplemented. Prospective purchasers are advised that as part of the offer process, the Owner will be evaluating several factors including the experience and financial qualifications of the purchasing entity.

The Owner shall have no obligation to accept any offer from any prospective purchaser. The Owner reserves the right to withdraw the Property from consideration at any time prior to final execution of a Purchase Agreement.

This Offering document is furnished to prospective purchasers for the purpose of determining whether to invest in the Property offered hereby. The information contained herein, or any other related information provided by the Owner, may not be reproduced, redistributed or used in whole or in part without the prior written consent of the Owner.

No person has been authorized to give any information or make any representation or warranty, either expressed or implied and, if given or made, such information or representation must not be relied upon.

While the Owner and ARA have no reason to believe that the information provided herein or in subsequent information updates delivered to potential purchasers hereunder contains any material inaccuracies, neither the Owner nor ARA nor any of the Owner’s or ARA’s respective subsidiaries, affiliates, companies, or the officers, directors, employees, agents and representatives of any such entities, etc., make any representations or warranties, expressed or implied, as to the validity, accuracy or completeness of the information provided or to be provided, and nothing herein shall be deemed to constitute a representation, warranty or promise by any such parties as to the future performance of the Property or any other matters set forth herein.

Any obligations to prospective purchasers that the Owner may have with respect to the Property are limited to those expressly set forth in a fully executed Purchase Agreement between the parties. Prospective purchaser’s sole and exclusive rights against the Owner, with respect to this prospective transaction, the Property, or information provided herein or subsequently, shall be limited to those remedies expressly provided in an executed Purchase Agreement, which shall not survive the closing. Further, in no event shall prospective purchasers have any claims against the Owner, ARA, or any of their respective affiliates for any damages, liability, or causes of action relating to the Purchase Agreement.

Prospective purchasers are not to construe the contents of this Offering or any prior or subsequent information communications from the Owner or any of their respective officers, employees or agents as legal, tax or other advice. Prior to purchasing, prospective purchasers should consult with their own legal counsel and personal and tax advisors to determine the consequences of an investment in the Property and arrive at an independent evaluation of such investment.

No commission or finder’s fee shall be payable to any party by the Owner nor any affiliate or agent thereof in connection with the sale of the Property unless otherwise agreed to by the Owner in writing.

Acquisition of property such as this offered hereunder involves a high degree of risk and is suitable only for persons and entities of substantial financial means.

Oklahoma City ranks #7 on national survey for “Best Cities to Raise a Family” (February 2017)

ACCORDING TO

26 CONFIDENTIAL OFFERING MEMORANDUM INFORMATION ABOUT BROKERAGE SERVICES

Before working with a real estate broker, you should know that the duties of a broker depend on whom the broker represents. If you are a prospective seller or landlord (owner) or a prospective buyer or tenant (buyer), you should know that the broker who lists the property for sale or lease is the owner’s agent. A broker who acts as a subagent represents the owner in cooperation with the listing broker. A broker who acts as a buyer’s agent represents the buyer. A broker may act as an intermediary between the parties if the parties consent in writing. A broker can assist you in locating a property, preparing a contract or lease, or obtaining financing without representing you. A broker is obligated by law to treat you honestly.

IF THE BROKER REPRESENTS THE OWNER The broker becomes the owner’s agent by entering into an agreement with the owner, usually through a written listing agreement, or by agreeing to act as a subagent by accepting an offer of subagency from the listing broker. A subagent may work in a different real estate office. A listing broker or subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first. The buyer should not tell the owner’s agent anything the buyer would not want the owner to know because an owner’s agent must disclose to the owner any material information known to the agent.

IF THE BROKER REPRESENTS THE BUYER The broker becomes the buyer’s agent by entering into an agreement to represent the buyer, usually through a written buyer representation agreement. A buyer’s agent can assist the owner but does not represent the owner and must place the interests of the buyer first. The owner should not tell a buyer’s agent anything the owner would not want the buyer to know because a buyer’s agent must disclose to the buyer any material information known to the agent.

IF THE BROKER ACTS AS AN INTERMEDIARY A broker may act as an intermediary between the parties if the broker complies with the laws of the state. The broker must obtain the written consent of each party to the transaction to act as an intermediary. The written consent must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker’s obligations as an intermediary. The broker is required to treat each party honestly and fairly. A broker who acts as an intermediary in a transaction:

(1) shall treat all parties honestly;

(2) may not disclose that the owner will accept a price less than the asking price unless authorized in writing to do so by the owner;

(3) may not disclose that the buyer will pay a price greater than the price submitted in a written offer unless authorized in writing to do so by the buyer; and

(4) may not disclose any confidential information or any information that a party specifically instructs the broker in writing not to disclose unless authorized in writing to disclose the information or required to do so by a court order or if the information materially relates to the condition of the property.

With the parties’ consent, a broker acting as an intermediary between the parties may appoint a person who is licensed under the state and associated with the broker to communicate with and carry out instructions of one party and another person who is licensed and associated with the broker to communicate with and carry out instructions of the other party.

IF YOU CHOOSE TO HAVE A BROKER REPRESENT YOU, you should enter into a written agreement with the broker that clearly establishes the broker’s obligations and your obligations. The agreement should state how and by whom the broker will be paid. You have the right to choose the type of representation, if any, you wish to receive. Your payment of a fee to a broker does not necessarily establish that the broker represents you. If you have any questions regarding the duties and responsibilities of the broker, you should resolve those questions before proceeding.

Listing Agent represents the Owner of Meridian Mansions.

A 114-UNIT MULTIFAMILY INVESTMENT OPPORTUNITY 27 Information for Meridian Mansions is available on our website at www.aranewmark.com

OKLAHOMA CITY OFFICE Justin Wilson Tim McKay 204 North Robinson T 405-605-2546 T 405-879-4768 Suite 700 [email protected] [email protected] Oklahoma City, OK 73102 Ted Prince T 405-602-3040 Brandon Lamb, CCIM T 405-630-0862 T 918-551-7600 [email protected] [email protected]

1017 www.aranewmark.com