Ocala Stone Apartments 2900–2904 Reisterstown Road & 2300–2302 Ocala Avenue | Baltimore, MD

OFFERING MEMORANDUM

The Opportunity Convenient for Auto Commuters Ocala Stone Apartments is a five-building, 36- The Property’s location along Reisterstown Road is unit community located at the intersection ideal for commuter residents. Street parking along of Reisterstown Road and Ocala Avenue, in Reisterstown Road and Ocala Avenue is plentiful the Mondawmin neighborhood of Northwest and these thoroughfares provide direct access Baltimore City. The Property includes four one- to employment centers such as Coppin State bedroom units, 31 two-bedroom units, and one University and Baltimore City Hall. three-bedroom unit. Access to Public Transit Convenient to Lifestyle Amenities The Mondawmin Metro Subwaylink Station is The Property is located a short walk from Druid a short three-block walk from the Property. The Hill Park, which includes destinations such as station serves as a city connector and provides the the Maryland Zoo in Baltimore and Druid Hill direct access to Lexington Market and State Center Park Golf Course. Quick access to Coppin State Station. Rental demand is strong in locations with University and the wonderful outdoor activities at access to transit. Druid Hill Park provides for strong rental demand from University employees, students and young Transformative Development adults. Furthermore, the large units and convenient Ocala Stone Apartments is located just a short location makes this building extremely attractive to five-minute walk from Mondawmin Mall, a small families. 385,535 sqft retail hub that holds 110 stores. In 2007, this mall underwent a $68M renovation and Value-Add Opportunity gained three anchor tenants, including Target and The Property offers new ownership the ability Shoppers food mart. to generate higher revenues through multiple value-add strategies. The large two-bedroom can LIHTC be reconfigured with an open floor plan to three The Property is subject to Maryland State affordability bedroom units. In-place rents are 30% below covenants. Originally placed-in-service in 1992, the market comparables and, with a lite renovation covenants had a 15-year initial compliance period value-add strategy, new ownership can improve with an additional 25-year extended use period. The rents and thus, net income at the Property. The covenants require that 100% of the units be rented to Property is located in an opportunity zone, residents making no more than 50% of the Baltimore allowing tax advantaged investment for those City Area Median Income (AMI). Because market seeking to deploy capital. rents for this area do not exceed the utility- adjusted LIHTC rent restrictions, the property effectively operates as a market-rate building. © 2021 Greysteel © 2021 Greysteel Property Details

Ocala Stone Apartments 2900–2904 Reisterstown Road & 2300–2302 Ocala Avenue • Baltimroe, MD 21215

70 66 WALK SCORE TRANSIT SCORE (Very Walkable) (Good Transit)

CONSTRUCTION MECHANICALS Framing Stick-Built Heating Electric Exterior Brick Cooking Electric Stories 3 Parking 15 Spaces Hot Water Electric Units 36 Roof Flat Air Conditioning Electric Building 5 Windows Dual-Pane Lights & Plugs Electric Year Built 1926

LOT SIZE TYPE OF OWNERSHIP NEIGHBORHOOD ZONING PARCEL 0.63 Fee Simple Liberty Square R070 0315303252 (001,002,01)

UTILITIES TAXES

UTILITY POWER PAID TAX TOTAL TAX TAXES SERVICE PROVIDER SERVICE SOURCE BY YEAR ASSESSED VALUE RATE PAID Heat Electric Resident BGE 2019 $659,500 2.36% $15,564 Cooking Eletric Resident BGE 2020 (Projected) $711,433 2.36% $16,790 Hot Water Electric Resident BGE Air Conditioning Electric Resident BGE Lights and Plugs Electric Resident BGE Water/Sewer - Property Baltimore City

Area Median Income Growth Rates Gross LIHTC Rent & FMR Growth Rates Baltimore City, OH Baltimore City, OH Year AMI % Change Year 2 BD/50% AMI Rent 2 BD FMR LIHTC % Change FMR % Change 2016 $86,700 (3.24%) 2016 $995 $1,298 2017 $91,100 5.07% 2017 $1,025 $1,376 3.02% 6.01% 2018 $94,900 4.17% 2018 $1,068 $1,411 4.20% 2.54% 2019 $101,000 6.43% 2019 $1,136 $1,342 6.37% (4.89%) 2020 $104,000 2.97% 2020 $1,170 $1,376 2.99% 2.53% 2021 $105,100 1.06% 2021 $1,182 $1,384 1.03% 0.58% 5-Yr Avg 3.94% 5-Yr Avg 3.52% 1.36%

Area Median Income, Gross LIHTC Rent, & FMR

$110,000 $1,450

$1,400 $105,000 $1,350

$1,300 ($) Rent Monthly $100,000 $1,250

$95,000 $1,200

$1,150

Area Median Income($) $90,000 $1,100

$1,050 $85,000 $1,000

$80,000 $950 2016 2017 2018 2019 2020 2021

Area Median Income 2 BD/50% AMI Rent 2 BD FMR

Utility Allowances - - - - -

Baltimore City, OH Multifamily Tax Subsidy Income Limits Baltimore City, OH Multifamily Tax Subsidy Income Limits 2021 Area Median Income (AMI): $105,100 2021 Maximum Allowable Income Restricted Monthly Rents 1 Person 2 People 3 People 4 People 5 People 6 People Efficiency 1 Bedroom 2 Bedrooms 3 Bedrooms 4 Bedrooms

80% AMI $58,880 $67,280 $75,680 $84,080 $90,880 $97,600 80% AMI $1,472 $1,577 $1,892 $2,187 $2,440

60% AMI $44,160 $50,460 $56,760 $63,060 $68,160 $73,200 60% AMI $1,104 $1,182 $1,419 $1,640 $1,830

50% AMI $36,800 $42,050 $47,300 $52,550 $56,800 $61,000 50% AMI $920 $985 $1,182 $1,366 $1,525

40% AMI $29,440 $33,640 $37,840 $42,040 $45,440 $48,800 40% AMI $736 $788 $946 $1,093 $1,220 2020 Area Median Income (AMI): $104,000 2020 Maximum Allowable Income Restricted Monthly Rents 1 Person 2 People 3 People 4 People 5 People 6 People Efficiency 1 Bedroom 2 Bedrooms 3 Bedrooms 4 Bedrooms

80% AMI $58,240 $66,560 $74,880 $83,200 $89,920 $96,560 80% AMI $1,456 $1,560 $1,872 $2,164 $2,414

60% AMI $43,680 $49,920 $56,160 $62,400 $67,440 $72,420 60% AMI $1,092 $1,170 $1,404 $1,623 $1,810

50% AMI $36,400 $41,600 $46,800 $52,000 $56,200 $60,350 50% AMI $910 $975 $1,170 $1,352 $1,508

40% AMI $29,120 $33,280 $37,440 $41,600 $44,960 $48,280 40% AMI $728 $780 $936 $1,082 $1,207 2019 Area Median Income (AMI): $101,000 2019 Maximum Allowable Income Restricted Monthly Rents

1 Person 2 People 3 People 4 People 5 People 6 People Efficiency 1 Bedroom 2 Bedrooms 3 Bedrooms 4 Bedrooms

80% AMI $56,560 $64,640 $72,720 $80,800 $87,280 $93,760 80% AMI $1,414 $1,515 $1,818 $2,101 $2,344

60% AMI $42,420 $48,480 $54,540 $60,600 $65,460 $70,320 60% AMI $1,060 $1,136 $1,363 $1,575 $1,758

50% AMI $35,350 $40,400 $45,450 $50,500 $54,550 $58,600 50% AMI $883 $946 $1,136 $1,313 $1,465

40% AMI $28,280 $32,320 $36,360 $40,400 $43,640 $46,880 40% AMI $707 $757 $909 $1,050 $1,172 2018 Area Median Income (AMI): $94,900 2018 Maximum Allowable Income Restricted Monthly Rents

1 Person 2 People 3 People 4 People 5 People 6 People Efficiency 1 Bedroom 2 Bedrooms 3 Bedrooms 4 Bedrooms

80% AMI $53,200 $60,800 $68,400 $75,920 $82,000 $88,080 80% AMI $1,330 $1,425 $1,710 $1,974 $2,202

60% AMI $39,900 $45,600 $51,300 $56,940 $61,500 $66,060 60% AMI $997 $1,068 $1,282 $1,480 $1,651

50% AMI $33,250 $38,000 $42,750 $47,450 $51,250 $55,050 50% AMI $831 $890 $1,068 $1,233 $1,376

40% AMI $26,600 $30,400 $34,200 $37,960 $41,000 $44,040 40% AMI $665 $712 $855 $987 $1,101

Renovated Renovated Renovated Total Effective Effective Total Effective In-Place Max In-Place Max In-Place Max Unit Type No. of Units Rentable SF Market Market Market Rent Rentable SF Rent/Unit Rent/SF Rent Rent/Unit Rent/SF Rent Potential Rent/Unit Rent/SF Potential 1br-1bath 4 600 2,400 $518 $0.86 $2,073 $600 $1.00 $2,400 $832 $1.39 $3,328 2br-1bath 31 725 22,475 $588 $0.81 $18,236 $750 $1.03 $23,250 $892 $1.23 $27,652 3Br-1bath 1 950 950 $750 $0.79 $750 $750 $0.79 $750 $1,045 $1.10 $1,045 Totals / Wtd. Averages 36 717 25,825 $585 $0.82 $21,059 $733 $1.02 $26,400 $890 $1.24 $32,025 *(S) denotes rental subsidy

Unit Mix $1,200

$1,045 1br-1bath 3Br-1bath 11% $1,000 3% $892 $832

$800 $750 $750 $750 UNIT SUMMARY

Unit Mix Summary $600 Renovated Renovated Renovated $588 Total Effective Effective Total Effective In-Place Max In-Place Max In-Place$600 Max Unit Type No. of Units Rentable SF Market Market Market Rent Rentable SF Rent/Unit Rent/SF Rent Rent/Unit Rent/SF Rent Potential Rent/Unit$518 Rent/SF Potential 1br-1bath 4 600 2,400 $518 $0.86 $2,073 $600 $1.00 $2,400 $832 $1.39 $3,328 2br-1bath 31 725 22,475 $588 $0.81 $18,236 $750 $1.03 $23,250 $892 $1.23 $27,652 3Br-1bath 1 950 950 $750 $0.79 $750 $750 $0.79 $750$400 $1,045 $1.10 $1,045 Totals / Wtd. Averages 36 717 25,825 $585 $0.82 $21,059 $733 $1.02 $26,400 $890 $1.24 $32,025 *(S) denotes rental subsidy

$1,200 $200

2br-1bath $1,045 1br-1bath 86% 3Br-1bath 11% $1,000 - 3% $892 1br-1bath 2br-1bath 3Br-1bath UNIT MIX RENT SUMMARY $832 Unit Mix Summary Unit Mix Summary Effective Rent/Unit In-Place Max Rent/Unit Renovated Market Rent/Unit $800 $750 $750 $750 Unit Mix Summary Renovated Renovated Renovated Renovated Renovated Renovated Total Effective Effective Total Effective In-Place Max In-Place Max In-Place TotalMax Effective Effective Total Effective In-Place Max In-Place Max In-Place Max Unit Type No. of Units Rentable SF Unit Type No. of Units Rentable SF Market RenovatedMarket Renovated Market RentRenovated Market Market Market Rent Rentable SF Rent/UnitTotal Rent/SFEffective EffectiveRent Total EffectiveRent/Unit In-PlaceRent/SF Max In-PlaceRent PotentialRentableMax In-Place SF Max Rent/Unit Rent/SF Rent Rent/Unit Rent/SF Rent Potential Unit Type No. of Units Rentable SF Rent/Unit MarketRent/SF Market PotentialMarket Rent Rent/Unit Rent/SF Potential Rentable SF Rent/Unit Rent/SF Rent Rent/Unit Rent/SF Rent Potential Rent/Unit Rent/SF Potential 1br-1bath 4 600 2,400 $5181br-1bath $0.86 $2,073 $6004 $1.00600 $2,4002,400 $832$518$600 $1.39 $0.86 $3,328 $2,073$588 $600 $1.00 $2,400 $832 $1.39 $3,328 1br-1bath 4 600 2,400 $518 $0.86 $2,073 $600 $1.00$600 $2,400 $832 $1.39 $3,328 2br-1bath 31 725 22,475 $5882br-1bath $0.81 $18,236 $75031 $1.03725 $23,250 22,475 $892$588 $1.23 $0.81 $27,652 $18,236 $750 $1.03 $23,250 $892 $1.23 $27,652 2br-1bath 31 725 22,475 $588 $0.81 $18,236 $750 $1.03 $23,250$518 $892 $1.23 $27,652 3Br-1bath 1 950 950 $7503Br-1bath $0.79 $750 $7501 $0.79950 $750950 $1,045$750 $1.10 $0.79 $1,045 $750 $750 $0.79 $750 $1,045 $1.10 $1,045 3Br-1bath 1 950 950 $750 $0.79 $750 $750 $0.79 $750 $1,045 $1.10 $1,045 Totals / Wtd. Averages 36 717 25,825 $585Totals $0.82 / Wtd. Averages $21,059 $73336 $1.02717 $26,400 25,825 $890$585 $1.24 $0.82 $32,025 $21,059 $733 $1.02 $26,400 $890 $1.24 $32,025 Totals / Wtd. Averages 36 717 25,825 $585 $0.82 $21,059 $733 $1.02 $26,400 $890 $1.24 $32,025 *(S) denotes rental subsidy *(S) denotes rental subsidy *(S) denotes rental subsidy $400

$1,200 $1,200 $1,200

$1,045 $1,045 $1,045 $200 1br-1bath 1br-1bath 1br-1bath 3Br-1bath 3Br-1bath 11% 11% $1,000 $1,000 3Br-1bath 11% $1,000 3% 3% 2br-1bath 3% $892 86% $892 $892 $832 $832 - $832 $800 $750 1br-1bath$750 $750 2br-1bath 3Br-1bath $800 $750 $800$750 $750 $750 $750 $750

Effective Rent/Unit In-Place Max Rent/Unit Renovated Market Rent/Unit $600 $588 $600 $600 $588 $600 $588 $600 $518 $600 $518 $518

$400 $400 $400

$200

$200 $200 2br-1bath 86% 2br-1bath - 2br-1bath 86% 86% 1br-1bath 2br-1bath 3Br-1bath - - 1br-1bath Effective Rent/Unit 2br-1bathIn-Place Max Rent/Unit Renovated3Br-1bath Market Rent/Unit1br-1bath 2br-1bath 3Br-1bath

City of Baltimore Home to approximately 600,000 residents, Baltimore is the largest city in Maryland and is the historic, business, education, and cultural center of the state. The city is fueled by a diverse economy, ranging from health care and education related services to a thriving defense contracting industry and leisure and hospitality sector. The prominence of health care and knowledge-related industries is reflected in the composition of the Baltimore’s major employers. Located within driving distance of major economic centers along the Eastern Seaboard, the city’s convenient location and relatively low cost of living makes it a popular destination for new residents as well as national and regional headquarters, which include Constellation NewEnergy, Laureate Education, Legg Mason, T. Rowe Price, and Under Armour.

• No. 1 “Coolest City on the East Coast” • Baltimore is home to 12 renowned colleges (Travel + Leisure) and universities, bolstering a well-educated • No. 2 “Best Food City in America” (Zagat) workforce • Among the “Three of the Best U.S. Cities for • More than 60 federal agencies and research labs Recent College Grads” (Wall Street Journal) bring substantial federal spending and jobs to the city • Among the “Top places to go in USA & Canada in 2020” (Fodor’s) • Home to two state of-the-art biotechnology parks and numerous other business and • Among the “Great American Cities for Creatives” industrial parks (Thrillist) • Private sector industries generate $36.7 billion in • No. 7 “The 8 Most Underrated Cities in America” economic output and the Port of Baltimore and (Jetsetter) Foreign Trade Zone #74 are significant economic • Encompasses 80 square miles and accounts for drivers for the region 23% of the region’s total population

MARKET OVERVIEW

Baltimore, MD MSA Home to more than 2.8 million people, the Baltimore MSA is the 21st most populated metro in the nation and an integral part of the Baltimore–Washington combined statistical area. Greater Baltimore is centrally located in the Mid-Atlantic region with easy access via highways, port, rail, and air travel, making it highly attractive to both residents and businesses. As the economic center of Maryland, Baltimore is driven by the growth of a varied industry base ranging from health care, education, information technology, defense contracting, life sciences and biotechnology, cyber security, financial services, and other industries in need of highly-skilled workers. The Baltimore MSA produces over $215.5 billion (FY 2019) in GDP, accounting for more than half of Maryland’s GDP. The region boasts a highly educated population, prominent schools and universities, low unemployment and high incomes, and a modest cost of living. Excellent transit connectivity is available to the largest urban regions in the Northeast Corridor with Washington, D.C. and Philadelphia located within a convenient 45-minute drive of Greater Baltimore. In addition, Baltimore is one of only four Eastern U.S. ports with a 50-foot shipping channel and a 50-foot container berth, allowing it to accommodate some of the largest container ships in the world. While Baltimore Washington International Thurgood Marshall Airport (BWI) remains one of the busiest in the country, with nearly 27 million passengers in 2019.

Regional Economic Highlights: Source: U.S. Bureau of Labor Statistics (as of December 2020)

MAJOR GROWTH SECTORS +10.1% 1,358,900 5.6% Leisure & Hospitality (+62.2%); Employment Growth Total Nonfarm Unemployment Other Services (+24.3%); (Y-O-Y) Employment Rate Trade, Transportation, & Utilities (+19.6%) (Since April 2020 ) (Since April 2020) © 2021 Greysteel JOHNS HOPKINS UNIVERSITY (1.5 MILES) UNIVERSITY OF MARYLAND MEDICAL CENTER (2.3 MILES)

789-bed UMMC teaching Employs nearly 26,000 hospital and 177-bed individuals and has an Midtown Campus provide enrollment more than training for approximately 26,000 full- and part-time half of all of Maryland’s students throughout physicians and other nine academic divisions health care professionals

LIFEBRIDGE HEALTH - SINAI (2.1 MILES) EXELON (3.0 MILES)

504-bed teaching and research hospital, is one Top supplier of power, of the largest private natural gas, renewable employers in Baltimore energy, serving with over 5,300 medical approximately 2 professionals, faculty, million residential and and staff business customers

MEDSTAR HEALTH (2.1 MILES) JOHNS HOPKINS HOSPITAL & HEALTH SYSTEM (3.6 MILES)

Employs nearly 30,000 employees and 5,600 Primary facility includes affiliated physicians, 1,192 beds and receives facilitating more than more than 50,000 163,000 inpatient admissions inpatient admissions and and an additional 2,000,000 over 100,000 emergency outpatient visits every year room visits per year 6

83 1 95 2 5

OCALA STONE APARTMENTS BYP

40 895

1 8 40

3 95 4 10

9 95 7 1

295

MAJOR EMPLOYERS MAP

MAJOR EMPLOYERS: BALTIMORE CITY, MD Company # of Employees Industry 1 Johns Hopkins Hospital and Health System 20,485 Health Care 2 Johns Hopkins University 18,600 Higher Education 3 University of Maryland Medical System 11,450 Health Care 4 University System of Maryland 8,965 Higher Education 5 MedStar Health 6,175 Health Care 6 LifeBridge Health – Sinai 5,315 Health Care 7 Amazon 4,500 e-Commerce / Distribution 8 Mercy Health Services 4,030 Health Care 9 St. Agnes Healthcare 3,265 Health Care 10 Exelon / Constellation Energy / BGE 2,950 Utilities / Energy

Source: City of Baltimore, MD 2020 CAFR

DRUID HILL PARK GOLF COURSE

REISTERSTOWN ROAD

DRUID PARK DRIVE THE MARYLAND ZOO IN BALTIMORE OCALA STONE APARTMENTS BALTIMORE LIBERTY HEIGHTS AVENUE AUCHENTOROLY TERRACE

N. DUKELAND STREET CITY COMMUNITY COLLEGE 0.3 Miles

BARD HIGH MONDAWMIN SCHOOL STATION METRO EARLY COLLEGE SUBWAYLINK

REISTERSTOWN ROAD

GWYNNS FALLS ELEMENTARY GWYNNS FALLS PARKWAY FREDERICK SCHOOL DOUGLASS COPPIN HIGH SCHOOL MONDAWMIN MALL STATE UNIVERSITY

Penn North Station (0.7 Miles)

TOTAL RESIDENTIAL RENTER OCCUPIED POPULATION TOTAL EMPLOYEES HOUSING UNITS

MILES 2020 2025 MILES 2020 MILES 2020 2025 1 22,952 22,385 1 8,825 1 4,450 4,409 3 259,944 255,107 3 110,073 3 61,490 60,431 5 589,966 584,087 5 273,932 5 120,208 119,950

MEDIAN AVERAGE MEDIAN AGE HOUSEHOLD INCOME HOUSEHOLD INCOME

MILES 2020 2025 MILES 2020 2025 MILES 2020 2025 1 40.1 41.3 1 $40,134 $42,251 1 $57,709 $64,197 3 36.7 37.8 3 $43,671 $45,933 3 $69,037 $75,254 5 37.0 38.0 5 $54,257 $57,189 5 $82,430 $90,972

PER CAPITA INCOME

MILES 2020 2025 1 $22,212 $24,762 3 $28,409 $30,908 5 $33,614 $37,120

129

140 PARK HEIGHTS AVENUE 2 REISTERSTOWN ROAD

CALLAWAY AVENUE

JONES FALLS EXPRESSWAY

26 LIBERTY HEIGHTS AVENUE

5 OCALA STONE APARTMENTS

GWYNNS FALLS PARKWAY 3

DIST. TO YEAR ASKING RENT ASKING RENT PROPERTY UNITS SUBJECT BUILT PER UNIT PER SF (MILES) Clipper Mill 36 200612018 •1,039 $1,984 $1.91 •94% 0.9 2 The Highlander Apartments 12 2021 1,074 $1,808 $1.68 53% 1.0 3 2506 Madison Avenue 6 1907 815 $1,102 $1.35 94% 0.9 4 Ashburton Townhomes 54 1960 972 $1,072 $1.10 94% 0.9 5 Parkside Manor 45 1926 821 $896 $1.09 96% 0.1 Ocala Stone Apartments* 1926 $585 $0.82 - Survey Average $1,159 $1.29 - *Subject property effective rent $2,500 $2.50

$2,000 • $2.00 u.. :!= V) C • =., OJ $1,500 $1.50 a.. OJ +-' a.. C +-' • OJ C • 0::: OJ 0::: Ol C Ol • $1,000 • $1.00 :.'2 C V, :.'2 V, • $500 $0.50

$0 $0.00 Ocala Stone* Parkside Manor Ashburton 2506 Madison Survey Average The Highlander Clipper Mill Townhomes Avenue Apartments

Asking Rent Per Unit • Asking Rent Per SF

Sorted by Utility Adjusted Rent per Unit

129

AUCHENTOROLY TERRACE

ANOKA AVENUE

140

REISTERSTOWN ROAD

140 OCALA AVENUE

PROPERTY AERIAL

INVESTMENT SALES CAPITAL MARKETS CONTACTS CONTACT

AARON INMAN HERBERT SCHWAT W. KYLE TANGNEY HASAN ASKARI JACK WHITMAN Associate Director Managing Director Senior Associate Associate | Capital Markets 202.899.6414 202.618.3419 202.280.2730 410.505.0003 202.602.6304 [email protected] [email protected] [email protected] [email protected] [email protected] D.C. SP200206033 D.C. SP98377485 D.C. SP98369974 D.C. SP200205686

7735 Old Georgetown Road | Suite 301 | Bethesda, MD 20814 202.280.2722 | www.greysteel.com

MD License No: 636050 Broker | Ari Firooabadi | 636050

For more information or to inquire about Greysteel, please contact Ari Firoozabadi, CEO | [email protected] | 202.417.3873 Offices Nationwide | License Information and Online Disclosures

Greysteel, seller, and their respective representatives make no representations or warranties, express or implied,regarding the accuracy or completeness of the information in this Offering. All references to acreage, square footage, distance, and other measurements are approximations and must be independently verified. Prospective purchasers shall be responsible for performing their own independent due diligence with respect to a possible transaction. This Offering is subject to prior placement, withdrawal, cancellation or modification without notice.