CITY CENTER RENO AFFORDABLE APARTMENTS 160 Sinclair Street, Reno, Nevada 89501

OFFERING MEMORANDUM CITY CENTER RENO AFFORDABLE APARTMENTS 160 Sinclair Street, Reno, Nevada 89501

DOWNTOWN RENO NEIGHBORHOOD CONFIDENTIALITY AGREEMENT

1 Purpose. Company and Recipient wish to explore a potential business opportunity of mutual interest and in connection with this opportunity, Company may disclose to Recipient certain confidential technical and business information, which Company desires Recipient to treat as confidential. 2 “Confidential Information” means (a) any information disclosed by Company to Recipient, either directly or indirectly, in writing, orally or by inspection of tangible objects, including, without limitation, algorithms, business plans, business systems, customer data, customer lists, customer names, designs documents, drawings, logos, proposed trademarks or similar intellectual property, engineering information, financial analysis, forecasts, formulas, hardware configuration information, know-how, ideas, inventions, market information, marketing plans, processes, products, product plans, research, specifications, software, source code, trade secrets or any other information which is designated as “confidential,” “proprietary” or some similar designation (collectively, the “Disclosed Materials”) and (b) any information otherwise obtained, directly or indirectly, by Recipient through inspection, review or analysis of the Disclosed Materials. Confidential Information may also include information of a third party that is in the possession of Company and is disclosed to Recipient under this Agreement. Confidential Information shall not, however, include any information that (i) was publicly known and made generally available in the public domain prior to the time of disclosure by Company; (ii) becomes publicly known and made generally available after disclosure by Company to Recipient through no action or inaction of Recipient; (iii) is already in the possession of Recipient at the time of disclosure by Company as shown by Recipient’s files and records immediately prior to the time of disclosure; (iv) is obtained by Recipient from a third party lawfully in possession of such information and without a breach of such third party’s obligations of confidentiality; or (v) is independently developed by Recipient without use of or reference to Company’s Confidential Information, as shown by documents and other competent evidence in Recipient’s possession. 3 Non-use and Non-disclosure. Recipient agrees not to use any Confidential Information for any purpose except to evaluate and engage in discussions concerning a potential business relationship between Recipient and Company. Recipient agrees not to disclose any Confidential Information to third parties or to employees of Recipient, except to those employees who are required to have the information in order to evaluate or engage in discussions concerning the contemplated business relationship. Recipient shall not reverse engineer, disassemble or decompile any prototypes, software or other tangible objects which embody Company’s Confidential Information and which are provided to Recipient hereunder. 4 Maintenance of Confidentiality. Recipient agrees that it shall take all reasonable measures to protect the secrecy of and avoid disclosure and unauthorized use of the Confidential Information. Without limiting the foregoing, Recipient shall take at least those measures that Recipient takes to protect its own most highly confidential information and shall have its employees who have access to Confidential Information sign a non-use and non-disclosure agreement in content substantially similar to the provisions hereof, prior to any disclosure of Confidential Information to such employees. Recipient shall not make any copies of Confidential Information unless the same are previously approved in writing by the Company. Recipient shall reproduce Company’s proprietary rights notices on any such approved copies, in the same manner in which such notices were set forth in or on the original. Recipient shall immediately notify Company in the event of any unauthorized use or disclosure of the Confidential Information. 5 No Obligation. Nothing herein shall obligate Company or Recipient to proceed with any transaction between them, and each party reserves the right, in its sole discretion, to terminate the discussions contemplated by this Agreement concerning the business opportunity; provided, however, such termination shall in no way diminish, terminate or otherwise affect Recipient’s non-disclosure and confidentiality obligations hereunder. 6 No Warranty. ALL CONFIDENTIAL INFORMATION IS PROVIDED “AS IS.” COMPANY MAKES NO WARRANTIES, EXPRESS, IMPLIED OR OTHERWISE, REGARDING ITS ACCURACY, COMPLETENESS OR PERFORMANCE. 7 Return of Materials. All documents and other tangible objects containing or representing Confidential Information and all copies thereof which are in the possession of Recipient shall be and remain the property of Company and shall be promptly returned to Company upon Company’s request. 8 No License. Nothing in this Agreement is intended to grant any rights to Recipient under any patent, mask work right or copyright of Company, nor shall this Agreement grant Recipient any rights in or to Confidential Information except as expressly set forth herein. 9 Non-Circumvention. Upon execution of this Agreement, Recipient agrees to refrain from, directly or indirectly, circumventing Company’s interest in any business opportunity which it becomes aware of as a result of any Confidential Information. Recipient is not under any duty or obligation to disclose or offer any business opportunity to the other Company that is unrelated to the business of Company. 10 Relationship Between the Parties. Nothing contained in this Agreement shall be deemed to constitute a partnership or joint venture between Recipient and Company to give rise to any license or right of either of the parties to any information owned or controlled by the other Party. 11 Term. This Agreement shall survive until such time as all Confidential Information disclosed hereunder becomes publicly known and made generally available through no action or inaction of Recipient. 12 Remedies. Recipient agrees that any violation or threatened violation of this Agreement will cause irreparable injury to the Company, entitling Company to obtain injunctive relief in addition to all legal remedies, and should Company have to retain the services of an attorney to enforce its rights hereunder as against Recipient, and Company is the substantially prevailing party, then Company shall be awarded its costs and legal fees to the fullest extent permitted by applicable law. 13 Recipient Information. Company does not wish to receive any confidential information from Recipient, and Company assumes no obligation, either express or implied, with respect to any information disclosed by Recipient. 14 Miscellaneous. This Agreement shall bind and inure to the benefit of the parties hereto and their successors and assigns. This Agreement shall be governed by the laws of the State of Nevada, without reference to conflict of laws principles. This document contains the entire agreement between the parties with respect to the subject matter hereof. Any failure to enforce any provision of this Agreement shall not constitute a waiver thereof or of any other provision hereof. This Agreement may not be amended, nor any obligation waived, except by a writing signed by both parties hereto.

OFFERING MEMORANDUM | CITY CENTER APARTMENTS 02 TABLE OF CONTENTS

04 EXECUTIVE SUMMARY Property Summary Property Photos Floor Plans Aerials Nevada Housing Division

14 RENT SURVEY Rent Comparable Summary Under Construction Properties

17 SALES COMPARABLES Sale Comparable Summary Recent Sales Activity

20 DEMOGRAPHICS Demographics Overview

24 RENO MULTIFAMILY OVERVIEW Overview Vacancy

03 PROPERTY SUMMARY

OFFERING MEMORANDUM | CITY CENTER APARTMENTS 04 PROPERTY PROPERTY SUMMARY No. of Units: 258 Stories: 3 City Center Apartments is in the heart of Downtown Reno, Avg. Unit Size: 351 SF near many hotels & casinos. The property enjoys a fully Type: Apartments - All Rent Type: Fully Affordable landscaped courtyard, barbeque grills, and 24 hour fully Year Built: 2001 equipped fitness center. The property is fully secure, with Parking: ±150 Spaces Assessor’s Parcel 011-126-10 key entry parking garage. Number

APARTMENT FEATURES SHOPS & GROCERS DINING PRICE: • Refrigerator • Save Mart Supermarket • Bertha Miranda’s Mexican Restaurant • Air Conditioning • Great Basin Community • Wild River Grille $20,320,273 • 9-Foot Ceilings • Food Co-op • Campo • Electric Range • The Urban Market • Old Granite Street Eatery • Garbage Disposal • Outlets at Legends • Midtown Eats • Microwave • Meadowood Mall • Private Balcony* EDUCATION PRICE/UNIT: • Utilities Included EMPLOYMENT • Mt. Rose Elementary • *In Select Units • City of Reno • Innovations High School $78,760 • Wells Fargo • University of Nevada, Reno Buyer must be approved by the NHD COMMUNITY AMENITIES • Harrah’s Reno Hotel and Casino • Truckee Meadows Community College • Fitness Center • Eldorado Hotel and Casino • Carrington College • Laundry Facility • International Game Technology • Recreation & Entertainment The property is being offered through the • Lobby with Resident Lounge Nevada Housing Authority’s (NHD) Qualified • Air Conditioning RENO RIVERWALK DISTRICT Contract Sale Program. Prospective Buyers • Parking Garage • Wingfield Park must maintain and operate the property in • Courtyard with Barbecue & • Aces Ballpark accordance with the Low Income Housing Tax Picnic Area • Terry Lee Wells Nevada Discovery Museum Credit Program ( LIHTC), administered by the • Controlled Access • National Automobile Museum Nevada Housing Authority ( NHD) • Elevators • Lobby • Onsite Management • Close to Park

OFFERING MEMORANDUM | CITY CENTER APARTMENTS 05 Subject Property Subject Property

S160ub Sinclairject P Stro -p Cityerty Center Apartments 160Su bSinclairject P Stro -p Cityert yCenter Apartments Reno, Nevada - Midtown Reno Neighborhood Reno, Nevada - Midtown Reno Neighborhood 160 Sinclair St - City Center ApartmentsPROPERTY PROPERTY MANAGER No.PROPERTY of Units: PROPERTY MANAGER Reno,160 Sinclair Nevada - MidtownSt - City Reno Center Neighborhood ApartmentsNo. of Units: 258 Compass - City Center Apartments Reno, Nevada - Midtown Reno NeighborhoodStories:No. of Units: 258 Compass - City Center Apartments Stories: 3 (775) 284-9500 PROPERTY PROPERTY(775) 284-9500 MANAGER Avg.Stories: Unit Size: 3513 SF (775) 284-9500 PROPERTYAvg. Unit Size: 351 SF PROPERTY MANAGER No.Avg. of Unit Units: Size: 258351 SF Compass - City Center Apartments No.Type: of Units: Apartments - All Stories:Type: 3258Apartments - All (775)Compass 284-9500 - City Center Apartments RentType: Type: AffordableApartments - All Stories:Rent Type: 3Affordable (775)OWNER 284-9500 Avg.Rent Unit Type: Size: 351 SF Year Built: 2001Affordable OWNER Avg.Year UnitBuilt: Size: 3512001 SF Veneto Capital Management Type:Year Built: Apartments2001 - All Veneto Capital Management Type:Parking: Apartments150 Spaces; - 0.6All per U… Purchased Mar 2018 RentParking: Type: Affordable150 Spaces; 0.6 per U… OWNERPurchased Mar 2018 DistanceParking: to Transit: -150 Spaces; 0.6 per U… Purchased Mar 2018 RentDistance Type: to Transit: Affordable- OWNER$40,000,000 - Portfolio Price YearDistance Built: to Transit:2001- V$40,000,000eneto Capital - Portfolio Management Price Year Built: 2001 Parking: 150 Spaces; 0.6 per U… PurchasedVeneto Capital Mar Management2018 Parking: 150 Spaces; 0.6 per U… Distance to Transit: - $40,000,000Purchased Mar - Portfolio 2018 Price Distance to Transit: - $40,000,000 - Portfolio Price

ASKING RENTS PER UNIT/SF VACANCY 12 MONTH NET ABSORPTION ASKING RENTS PER UNIT/SF SourceVACANCY - CoStar Analytics 12 MONTH NET ABSORPTION PROPERTYASKINGCurrent: RENTSSUMMARY PER UNIT/SF Current:VACANCY Current:12 MONTH NET ABSORPTION Current: $791 $2.25 /SF Current: 3.9% 10 Units Current: (2) Units LastCurrent: Quarter: $768$791 $2.25 $2.19 /SF LastCurrent: Quarter: 3.5%3.9% 910 Units Units CompetitorCurrent: Total: 21(2) UnitsUnits ASKINGLast Quarter: RENTS PER$768 UNIT/SF $2.19 /SF VACANCYLast Quarter: 3.5% 9 Units 12Competitor MONTH NET Total: ABSORPTION21 Units YearLast Quarter:Ago: $768 $2.19 /SF YearLast Quarter:Ago: 3.5% 9 Units Competitor Avg:Total: 21 Units YearASKING Ago: RENTS PER$700 UNIT/SF $1.99 /SF VACANCYYear Ago: 3.1% 8 Units 12Competitor MONTH NET Avg: ABSORPTION1.3 Units Current:Year Ago: $791$700 $2.25$1.99 /SF Current:Year Ago: 3.9%3.1% 108 Units Current:Competitor Avg: (2)1.3 Units Units Competitors:Current: $791$1,020 $2.25$1.33 /SF Current:Competitors: 3.9%2.5% 1097 Units Units Current:Submarket Total: (2)229 Units Units LastCompetitors: Quarter: $768$1,020 $2.19$1.33 /SF LastCompetitors: Quarter: 3.5%2.5% 997 Units Units CompetitorSubmarket Total:Total: 21229 Units Units Submarket:Competitors: $1,020 $1.33 /SF Submarket:Competitors: 2.5% 97 Units Submarket Avg:Total: 229 Units Submarket:Last Quarter: $768$796 $1.60 $2.19 /SF LastSubmarket: Quarter: 3.5%3.5% 9189 Units Units CompetitorSubmarket Total:Avg: 210.9 Units Units YearSubmarket: Ago: $700$796 $1.99$1.60 /SF/SF YearSubmarket: Ago: 3.1%3.5% 8189 Units Units CompetitorSubmarket Avg:Avg: 1.30.9 Units Units Year Ago: $700 $1.99 /SF Year Ago: 3.1% 8 Units Competitor Avg: 1.3 Units Competitors: $1,020 $1.33 /SF Competitors: 2.5% 97 Units Submarket Total: 229 Units Competitors: $1,020 $1.33 /SF Competitors: 2.5% 97 Units Submarket Total: 229 Units Submarket:UNIT BREAKDOWN$796 $1.60 /SF Submarket: 3.5% 189 Units Submarket Avg: 0.9 Units Submarket:UNIT BREAKDOWN$796 $1.60 /SF Submarket: 3.5% 189 Units Submarket Avg: 0.9 Units Unit Mix Availability Avg Asking Rent Unit Mix Availability Avg Asking Rent Unit Mix Availability Avg Asking Rent Bed Bath Avg SF Units Mix % Units Percent Per Unit Per SF Per Unit Per SF Concessions UNITBed BREAKDOWN Bath Avg SF Units Mix % Units Percent Per Unit Per SF Per Unit Per SF Concessions Bed Bath Avg SF Units Mix % Units Percent Per Unit Per SF Per Unit Per SF Concessions UNITStudio BREAKDOWN 1 306 170 65.9% 7 4.1% $772 $2.52 $768 $2.51 0.5% Studio 1 306 170Unit Mix 65.9% 7Availability 4.1% $772Avg Asking Rent $2.52 $768 $2.51 0.5% Studio 1 306 170 65.9% 7 4.1% $772 $2.52 $768 $2.51 0.5% 1 1 438 88Unit Mix 34.1% 3Availability 3.4% $827Avg Asking Rent $1.89 $822 $1.88 0.6% Bed1Bath 1Avg 438 SF Units 88Mix 34.1% % Units 3Percent 3.4%Per $827 Unit Per $1.89 SF Per $822 Unit Per $1.88 SF Concessions 0.6% Bed1 Bath 1 Avg 438 SF Units 88 34.1%Mix % Units 3 Percent 3.4% Per $827 Unit Per $1.89 SF Per $822 Unit Per $1.88 SF Concessions 0.6% TotalsStudio 1 Avg306 SF170 Units65.9% Mix % Units7 Percent4.1% Per$772 Unit$2.52 Per SF Per$768 Unit$2.51 Per SF Concessions0.5% TotalsStudio 1Avg 306 SF Units170 65.9% Mix % Units 7 Percent 4.1% Per $772 Unit $2.52 Per SF Per$768 Unit $2.51 Per SF Concessions 0.5% Totals1 1 Avg438 SF Units88 34.1% Mix % Units3 Percent3.4% Per$827 Unit$1.89 Per SF Per$822 Unit$1.88 Per SF Concessions0.6% All Studios 306 170 65.9% 7 4.1% $772 $2.52 $768 $2.51 0.5% All Studios1 1306 438 170 88 34.1% 65.9% 3 7 3.4% 4.1% $827 $772 $1.89 $2.52 $822 $768 $1.88 $2.51 0.6% 0.5% All 1 Beds 438 88 34.1% 3 3.4% $827 $1.89 $822 $1.88 0.6% TotalsAll 1 Beds Avg438 SF Units 88Mix 34.1% % Units 3Percent 3.4%Per $827 Unit Per $1.89 SF Per $822 Unit Per $1.88 SF Concessions 0.6% AllTotals 1 Beds Avg438 SF Units 88 34.1% Mix % Units 3 Percent 3.4% Per $827 Unit Per $1.89 SF Per $822 Unit Per $1.88 SF Concessions 0.6% AllTotals Studios 306351170 25865.9% 100%7 104.1% 3.9%$772 $791$2.52 $2.25$768 $787$2.51 $2.240.5% 0.5% TotalsAll Studios 306351 170258 65.9% 100% 107 4.1% 3.9% $772 $791 $2.52 $2.25Estimate $768 $787 $2.51 $2.24Updated May 0.5% 0.5% 09, 2018 All 1 Beds 438 88 34.1% 3 3.4% $827 $1.89 Estimate$822 $1.88Updated May0.6% 09, 2018 All 1 Beds 438 88 34.1% 3 3.4% $827 $1.89Estimate $822 $1.88Updated May 0.6% 09, 2018 Totals 351 258 100% 10 3.9% $791 $2.25 $787 $2.24 0.5% Totals 351 258 100% 10 3.9% $791 $2.25 $787 $2.24 0.5% Estimate Updated May 09, 2018 SITE AMENITIES SITE AMENITIES Estimate Updated May 09, 2018 Fitness Center Laundry Facilities Center Courtyard with BBQs Fitness Center Laundry Facilities Center Courtyard with BBQs SITE AMENITIES UNITSITE AMENITIESAMENITIES FitnessUNIT AMENITIES Center Laundry Facilities Center Courtyard with BBQs UNIT AMENITIES AFitnessir Conditioning Center LaundryBalcony Facilities CenterDisposal Courtyard with BBQs Air Conditioning Balcony Disposal Heating Kitchen Microwave UNITHeating AMENITIES Kitchen Microwave HeatingUNIT AMENITIES Kitchen Microwave AOvenir Conditioning BalconyRefrigerator DisposalWheelchair Accessible (Rooms) OvenAir Conditioning BalconyRefrigerator DisposalWheelchair Accessible (Rooms) Heating Kitchen Microwave RECURRINGHeating EXPENSES Kitchen Microwave OvenRECURRINGSubjec EXPENSESt Property Refrigerator Wheelchair Accessible (Rooms) SRECURRINGOvenubjec EXPENSESt Property Refrigerator Wheelchair Accessible (Rooms) Dog Rent $25 Cat Rent $25 Unassigned Garage Parking $0 Dog Rent $25 Cat Rent $25 Unassigned Garage Parking $0 RECURRINGFree Gas, Water, EXPENSES Electricity, Heat, Trash… FreeRECURRING Gas, Water, EXPENSES Electricity, Heat, Trash… Dog Rent $25 Cat Rent $25 Unassigned Garage Parking $0 ONEDog RentTIME $25 EXPENSES Cat Rent $25 Unassigned Garage Parking $0 FreeONE Gas,TIME Water, EXPENSES Electricity, Heat, Trash… DogFree DepositGas, Water, $200 Electricity, Heat, Trash… Cat Deposit $200 Application Fee $35 Dog Deposit $200 Cat Deposit $200 Application Fee $35 PET POLICY 5/21/2018 Copyrighted report licensed to Colliers International - 551709. 5/21/2018 PET POLICY Copyrighted report licensed to Colliers International - 551709. 5/21/2018Page 2 Birds Allowed Copyrighted report licensed to Colliers International - 551709. 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OFFERING MEMORANDUM | CITY CENTER APARTMENTS 06

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OFFERING MEMORANDUM | CITY CENTER APARTMENTS 07 FLOOR PLANS

1 Bedroom 1 Bedroom Studio ±X,XXX SF ±XXX SF ±XXX SF

OFFERING MEMORANDUM | CITY CENTER APARTMENTS 08 Report Subregions Greater Reno-Sparks - Washoe County, Nevada

Subregion Boundaries Cold Springs North Valleys Lemmon Valley City of Reno COLD SPRING S D R LEMMON DR A City of TSparks A L Stead P A CALLE DE L

RED ROCK RD MILITARY RD EAGL E C A N Y Spanish Springs O N D R MOYA BLVD Spanish Springs RENO MAP¤£395 LA POSADA DR

Golden Valley Wingfield Springs N VIRGINIA ST

Sun Valley VISTA BLVD

LOS ALTOS PKWY

SUN VALLEY BLVD VISTA BLVD VISTA

D BARING BLVD V N BL N MC C ARRA D'Andrea LA S Somersett B RI SA Sparks S BLV D SOMERSETT PKWY North Urban PRATER WAY

Verdi GLENDALE AVE SPARKS BLVD W 2ND ST

ROBB DR

¨¦§80 VASSAR ST Airport Intl Reno-Tahoe ¨¦§80 W 4TH ST W PLUMB LN Hidden Valley ¨¦§580

LONGLEY LN New Northwest Old Southwest W MOANA LN E PECKHAM LNOld Southeast Caughlin Ranch S M CCARR AN BLVD

HUFFAKER LN PKWY S W O

D RD A E SO M

U T H South Meadows Storey Co. Storey

S VIRGINIA ST

OFFERING MEMORANDUM | CITY CENTER APARTMENTS New Southeast THOMAS CREEK ZOLEZZI LN 09 Arrowcreek

Washoe Co.

ARROWCREEK PKWY Damonte Ranch New Southwest ® TOLL RD Virginia City Highlands

FAWN LN Galena ¨¦§580 Pleasant Valley

341

0 0.5 1 2 Miles 431 Esri, USDA Farm Service Agency City CenterCITY Apartments CENTER APARTMENTS

OFFERING MEMORANDUM | CITY CENTER APARTMENTS 11 PARCEL MAP

OFFERING MEMORANDUM | CITY CENTER APARTMENTS 12 NEVADA HOUSING DIVISION ABOUT NEVADA HOUSING DIVISION The mission is to provide affordable housing opportunities and improve the quality of life for Nevada residents. Nevada Housing Division (NHD), a division of the State of Nevada Department of Business and Industry, was created by the Nevada State Legislature in 1975. NHD is committed to making Nevada a better place to live and work. We connect Nevadans with homes by providing financing to developers to build affordable apartment homes, by providing innovative mortgage solutions, and by making more homes energy efficient, thereby lowering utility expenses.

PROGRAMS AT A GLANCE Low Income Housing Tax Credit (LIHTC) Since 1986 the LIHTC program has assisted in the financing of 11,203 multi-family housing units in the State of Nevada with a total of nearly $108 million in housing tax credits allocated. The following objectives are identified in the 2018 Qualified Allocation Plan (QAP): > Increase the amount of safe and livable affordable rental housing in Nevada. > Preserve existing affordable rental housing. > Contribute to a vibrant and sustainable economy by supporting and facilitating the construction of affordable workforce housing near employment centers. > Increase the availability of housing with supportive services, including veterans housing. > Support the housing goals and objectives stated in the State of Nevada Consolidated Plan.

LOW INCOME HOUSING TAX CREDIT/BOND PROGRAM 2018 Income limits effective March 6, 2018.

INCOME # IN 1 PERSON 2 PERSON 3 PERSON 4 PERSON 5 PERSON 6 PERSON 7 PERSON 8 PERSON HOUSEHOLD 0.8 41,200 47,040 52,960 58,800 63,520 68,240 72,960 77,680 0.6 30,900 35,280 39,720 44,100 47,640 51,180 54,720 58,260 0.55 28,325 32,340 36,410 40,425 43,670 46,915 50,160 53,405 Reno 0.5 25,750 29,400 33,100 36,750 39,700 42,650 45,600 48,550 $73,500 0.45 23,175 26,460 29,790 33,075 35,730 38,385 41,040 43,695 (median) 0.4 20,600 23,520 26,480 29,400 31,760 34,120 36,480 38,840 0.35 18,025 20,580 23,170 25,725 27,790 29,855 31,920 33,985 0.3 15,450 17,640 19,860 22,050 23,820 25,590 27,360 29,130

Washoe County Maximum Rents as of March 6, 2018.

0 BEDROOM 1 BEDROOM 2 BEDROOM 3 BEDROOM 4 BEDROOM 1030 1103 1324 1529 1706 772.5 827.25 993 1146.75 1279.5 708.125 758.3125 910.25 1051.1875 1172.875 643.75 689.375 827.5 955.625 1066.25 579.375 620.4375 744.75 860.0625 959.625 515 551.5 662 764.5 853 450.625 482.5625 579.25 668.9375 746.375 386.25 413.625 496.5 573.375 639.75

Utility Allowances are included in the Maximum Rents. OFFERING MEMORANDUM | CITY CENTER APARTMENTS 13 RENT SURVEY

OFFERING MEMORANDUM | CITY CENTER APARTMENTS 14 RENT COMPARABLE SUMMARY Source - CoStar Analytics

Rent Comparables Summary 160 Sinclair St - City Center Apartments

No. Rent Comps Avg. Rent Per Unit Avg. Rent Per SF Avg. Vacancy Rate Rent Comparables Summary 160 Sinclair St - City Center Apartments 17 $1,020 $1.33 2.5% RENT COMP LOCATIONS Property Size Asking Rent Per Month Per Unit Property Name/Address Rating Yr Built Units Avg Unit SF Studio 1 Bed 2 Bed 3 Bed Rent/SF The Villager Apartments 1 - 1977 296 250 $585 - - - $2.34 1500 Valley Rd City Center Apartments - 2001 258 351 $772 $827 - - $2.25 160 Sinclair St Courtyard Centre Apartm… 2 - 2000 240 346 $752 $806 - - $2.18 695 W 3rd St The Highlands 3 - 2004 216 340 - - $740 $695 $2.01 2800 Enterprise Dr Latitude 39 4 - 2018 155 987 - $1,400 $1,667 $1,871 $1.63 9870 Double R Blvd Sundance West Apartments 5 - 1977 350 677 - $1,034 $1,315 - $1.63 3285 Clover Way The Phoenix Reno Apart… 6 - 1977 250 807 - $1,088 $1,499 $1,597 $1.62 4800 Kietzke Ln River Arms Apartments 7 - 1962 65 554 $704 $860 $1,207 - $1.53 1255 Jones St Plumas Garden 8 - 1976 105 617 $773 $919 - - $1.45 2850 Plumas St The View Luxury Apartme… 9 - 2009 308 1,031 - $1,295 $1,501 $1,795 $1.42 1195 Selmi Dr Silver Ridge 10 - 1990 300 956 - $1,220 $1,333 $1,720 $1.42 1555 Sky Valley Dr RENT COMPS SUMMARY STATISTICS Grove Manor 11 - 1978 80 575 $625 $850 - - $1.28 Unit Breakdown Low Average Median High 255 E Grove St Total Units 43 239 213 900 Northwind Apartments 12 - 1997 178 907 - $1,031 $1,126 $1,307 $1.25 Studio Units 0 39 0 296 1680 Sky Mountain Dr One Bedroom Units 0 79 48 416 Civic Center Apartments 13 - 1972 43 526 $603 $655 - - $1.20 Two Bedroom Units 0 89 70 410 300 Holcomb Ave Three Bedroom Units 0 18 8 74 Rosewood Park Apartments 14 - 1979 900 831 - $899 $1,025 $1,239 $1.18 Property Attributes Low Average Median High 4500 Mira Loma Dr Alder Creek Villas Year Built 1962 1987 1979 2018 15 - 1979 213 779 $700 $840 $950 $1,100 $1.15 Number of Floors 2 2 3 4 950 Nutmeg Pl Average Unit Size 250 SF 769 SF 779 SF 1,255 SF Willowbrook 16 - 1972 182 1,213 - $840 $1,017 $1,237 $0.83 Vacancy Rate 0.0% 2.5% 3.2% 7.1% 4050 Baker Ln YOUnion at Reno Star Rating 2.9 17 - 2016 186 1,255 - - $799 $559 $0.55 2780 Enterprise Rd

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OFFERING MEMORANDUM | CITY CENTER APARTMENTS 15 Under ConstrucUtiondne Pr rCoopnesrttierusUcntiodne rP CroopnesrtrtieucUstniodne Pr Croopnesrtrieusction Properties Under Construction Properties 811-821 Bridger Ave - City811-821 Center Bridger Apartments Ave -811-821 City Center Bridger Apartments Ave - City811-821 Center Bridger Apartments Ave - City Center Apartments 811-821 Bridger Ave - City Center Apartments Source - CoStar Analytics UNDERProperties CONSTRUCTIONPropertiesUnits Properties PROPERTIESPercentUnits Of InventoryPropertiesUnitsPercent OfAvg. Inventory No. Units PercentUnits Of InventoryAvg. No. UnitsPercent Of Avg.Inventory No. Units Avg. No. Units Properties Units Percent Of Inventory Avg. No. Units Properties Units Percent of Inventory Avg. No.Units 3 3 3327 32733274.3%4.3%33274.3%1093271094.3%109 4.3%109 109 UNDER CONSTRUCTION3 PROPERTIESUNDER CONSTRUCTION PROPERTIESUNDER327 CONSTRUCTION PROPERTIESUNDER CONSTRUCTION4.3 PROPERTIES 109 UNDER CONSTRUCTION PROPERTIES UNDER CONSTRUCTION PROPERTIES

UNDER CONSTRUCTION SUMMARYUNDER CONSTRUCTION STATISTICS SUMMARYUNDER CONSTRUCTION STATISTICS SUMMARYUNDER CONSTRUCTION STATISTICS SUMMARY STATISTICS UNDER CONSTRUCTION SUMMARY STATISTICS UNDER CONSTRUCTION SUMMARY STATISTICS LOW Low AVERAGEAverageLow MEDIANMedianAverageLow HighHIGHMedianAverageLow HighMedianAverage HighMedian High Low Average Median High Property Size in UnitsProperty Size inProperty Units Size in48 Units 48 Property Size in 109Units109 48 Property Size in 48Units48 10948 231231 4810948 23148109 231 48 231 Property Size in Units 48 109 48 231 Number of StoriesNumber of StoriesNumber of Stories3 3 Number of Stories4 4 3 Number of Stories4 4 4 3 55 44 3 5 4 4 5 4 5 Number of Stories 3 4 4 5 Average Unit SizeAverage Unit SizeAverage Unit Size708 SF708 SF Average Unit Size775775 SF708 SF SFAverage Unit Size775 775 SFSF708 SF SF 842 842SF775775 SF 708SF SF SF 842775 SF775 SF SF 842 775SF SF 842 SF Average Unit Size 708 SF 775 SF 775 SF 842 SF Star Rating Star Rating Star Rating Star Rating Star Rating StarEstimated Rating Delivery Date Jul 2018 Aug 2018 Aug 2018 Dec 2018 Estimated Delivery Date Estimated Delivery DateJul 2018Estimated DeliveryAug Date Jul2018 2018Estimated DeliveryAugAug 2018DateJul 2018 2018 Dec 2018AugAug 2018Jul 2018 2018 DecAug 2018Aug 2018 2018 Dec Aug2018 2018 Dec 2018 Months of Delivery 2 4 3 7 Months to DeliveryEstimated DeliveryMonths Date to Delivery 2 MonthsJul to 2018Delivery 4 2 MonthsAug to2018 Delivery3 42 Aug 2018 7 3 4 2 Dec 2018 7 3 4 7 3 7 Construction Period in Months 12 19 18 27 Construction PeriodMonths in Months to DeliveryConstruction Period in 12MonthsConstruction2 Period in19 Months12 Construction4 Period18 in19 Months12 3 27 181912 7 27 18 19 27 18 27 Construction Period in Months 12 19 18 27 OFFERING MEMORANDUM | CITY CENTER APARTMENTS 16

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OFFERING MEMORANDUM | CITY CENTER APARTMENTS 17 SALE COMPARABLE SUMMARY Source - CoStar Analytics

Sale Comparables Summary Construction Summary City Center Apartments - 160 Sinclair St Construction Summary 160 Sinclair St - City Center Apartments 160 Sinclair St - City Center Apartments Sale Comparables Avg. Price/Unit (thous.) Average Price (mil.) Average Vacancy at Sale NEWNEW CONSTRUCTION CONSTRUCTION OCCUPANCY AFTER DELIVERY OCCUPANCY BY YEAR BUILT AFTER DELIVERY BY YEAR BUILT NEW CONSTRUCTION OCCUPANCY AFTER DELIVERY BY YEAR BUILT 3 $149 $33.0 3.9% SALE COMPARABLE LOCATIONS

NETNET ABSORPTION ABSORPTION IN UNITS IN UNITS NET ABSORPTION IN UNITS

Sales Attributes Low Average Median High Sale Price $7,369,622 $32,971,940 $34,246,200 $57,300,000

Price Per Unit $46,940 $148,745 $155,664 $198,958

Cap Rate 5.2% 6.2% 5.6% 7.8%

Vacancy Rate at Sale 1.8% 3.9% 4.5% 5.6%

Time Since Sale in Months 6.6 10.8 8.7 16.9

Property Attributes Low Average Median High Property Size in Units 157 221 220 288

Number of Floors 2 3 3 5

Average Unit SF 291 706 887 941

Year Built 1907 1973 1997 2016

Star Rating 3.7

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OFFERING MEMORANDUM | CITY CENTER APARTMENTS 18 Affordable Housing Sales Activity Sales Volume Survey Min Max For Sale Survey Min Max Transactions 15 - - Listings -- - RECENTSold SALES Units ACTIVITY2,403Affordable 72 Housing236 Units Sales Activity -- - Sales Volume (Mil.) $155.01 $1.70 $26.00 For Sale Volume (Mil.) -- - Sales Volume Survey Min Max For Sale Survey Min Max Avg Units 166 72 236 Price Per Unit -- - Transactions Affordable15 - Housing- Listings Sales Activity -- - SalesSold Units Volume Survey2,403Min 72 Max236 ForUnits Sale Survey--Min Max- TransactionsSales Volume (Mil.) $155.0115 $1.70- $26.00- ListingsFor Sale Volume (Mil.) ---- - SoldAvg Units Units 2,40316672 236 UnitsPrice Per Unit ---- - Sales Survey Min Max Properties Survey Min Max Sales Volume (Mil.) $155.01Survey $1.70Min $26.00Max ForProperties Sale Volume (Mil.) Survey- Min- Max- Sale Price Per Unit $71,595 $9,399 $116,071 Existing Units 2,401 72 236 AvgSale Units Price Per Unit $71,595166 $9,39972 $116,071236 PriceExisting Per Units Unit 2,401- 72- 236- Avg Sale Price (Mil.) $12 $1.7 $26 Vacancy Rate 8.4% 0.8% 48.0% Cap Rate 5.8% 4.7% 6.9% Asking Rent $834 $545 $1,051 Sales Survey Min Max Properties Survey Min Max Percent Leased 90.7% 82.0% 98.0% 12 Mo. Absorp Units 17 1 4 Sale Price Per Unit $71,595 $9,399 $116,071 Existing Units 2,401 72 236 SalesAvg Sale Price (Mil.) Survey$12 $1.7Min Max$26 PropertiesVacancy Rate Survey8.4% 0.8%Min 48.0%Max SaleCap RatePrice Per Unit $71,5955.8% $9,3994.7% $116,0716.9% ExistingAsking Rent Units 2,401$834 $545 72 $1,051236 AvgPercent Sale Leased Price (Mil.) 90.7%$1282.0% $1.7 98.0%$26 Vacancy12 Mo. Absorp Rate Units 8.4%17 0.8%1 48.0%4 Cap Rate 5.8% 4.7% 6.9% Asking Rent $834 $545 $1,051 SALES VOLUME AVERAGE SALE PRICE PER UNIT PercentSales LeasedVolume 90.7% 82.0% 98.0% Average12 Mo. Absorp Sale Units Price Per Unit 17 1 4

Sales Volume Average Sale Price Per Unit

CAPCap RATE Rate Sales SALESVolume VOLUME by Buyer BY Type BUYER TYPE

Cap Rate Sales Volume by Buyer Type

OFFERING MEMORANDUM | CITY CENTER APARTMENTS 19

7/19/2018 Copyrighted report licensed to Colliers International - 508596.

7/19/2018 Copyrighted report licensed to Colliers International - 508596. DEMOGRAPHICS

OFFERING MEMORANDUM | CITY CENTER APARTMENTS 20 Demographic Overview 695 W 3rd St

Population (1 mi) Avg. HH Size (1 mi) Avg. Age (1 mi) Med. HH Inc. (1 mi) DEMOGRAPHIC OVERVIEW Source - CoStar Analytics Population20,785 (1 mi) Avg. HH Size1.8 (1 mi) Average40 Age (1 mi) $29,913Med. HH Inc. (1 mi) 20,785DEMOGRAPHIC RADIUS RINGS 1.8 40 $29,913 RENT COMP LOCATIONS

DEMOGRAHIC SUMMARY DEMOGRAPHICPOPULATION SUMMARY 1 MILE 3 MILES 5 MILES

2018Population Population 20,785 1 Mile 129,294 3 Mile 230,572 5 Mile 20232018 Population Population 21,879 20,785 138,014 129,294 246,283 230,572 Pop2023 Growth Population 2018-2023 5.3% 21,879 6.7% 138,014 6.8% 246,283 2018Pop Avg. Growth Age 2018-2023 40 5.3% 38 6.7% 38 6.8% HOUSEHOLDS2018 Average Age 40 38 38 Households 2018 Households 10,288 54,552 92,912 2018 Households 10,288 54,552 92,912 2023 Households 10,842 58,225 99,308 2023 Households 10,842 58,225 99,308 Household Growth 2018-2023 5.4% 6.7% 6.9% Household Growth 2018-2023 5.4% 6.7% 6.9% MedianMedian HH Household Income Income $29,913 $29,913 $40,841 $40,841 $44,901 $44,901 Avg.Average HH Income Household Size 1.8 1.8 2.3 2.3 2.4 2.4 Avg.Average HH Vehicles HH Vehicles 1 1 1 1 2 2 HOUSINGHousing MedianMedian Home Home Value Value $320,408$320,408 $284,449$284,449 $279,241 $279,241 Median Year Built 1966 1974 1978 Median Year Built 1966 1974 1978

5/21/2018 OFFERING MEMORANDUM | CITY CENTER APARTMENTS Copyrighted report licensed to Colliers International - 551709. Page 74 21 DEMOGRAPHICAge & Edu cOVERVIEWation Source - CoStar Analytics Age & Education 695 W 3rd St - Courtyard Centre Apartments POPULATION BY AGE GROUP IN 1 MILE RADIUS 695 W 3rd St - Courtyard Centre Apartments

POPULATION BY AGE GROUP IN 1 MILE RADIUS

POPULATION BY AGE IN 1 MILE RADIUS POPULATION BY EDUCATION IN 1 MILE RADIUS

OFFERING MEMORANDUM | CITY CENTER APARTMENTS 22

5/21/2018 Copyrighted report licensed to Colliers International - 551709. Page 75 5/21/2018 Copyrighted report licensed to Colliers International - 551709. Page 75 Ethnicity 695 W 3rd St DEMOGRAPHIC OVERVIEW Source - CoStar Analytics

POPULATION BY RACE

2018 Population

Race 1 Mile 3 Mile 5 Mile

White 17,160 82.56% 106,695 82.52% 192,607 83.53%

Black 862 4.15% 4,729 3.66% 7,517 3.26%

Asian 1,324 6.37% 8,526 6.59% 14,965 6.49%

American Indian & Alaskan 440 2.12% 2,917 2.26% 4,842 2.10%

Hawaiian & Pacific Islander 180 < 1% 1,449 1.12% 2,150 < 1%

Other 819 3.94% 4,979 3.85% 8,491 3.68%

0 3,600 7,200 10,800 14,400 18,000

POPULATION BY RACE IN 1 MILE RADIUS HISPANIC POPULATION IN 1 MILE RADIUS

MILITARY POPULATION

2018 Population

1 Mile 3 Mile 5 Mile

Military 15 < 1% 106 < 1% 143 < 1%

Non-Military Workforce 10,443 99.86% 64,429 99.84% 114,763 99.88%

0 2,400 4,800 7,200 9,600 12,000

OFFERING MEMORANDUM | CITY CENTER APARTMENTS 23

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Page 76 RENO MULTIFAMILY OVERVIEW

OFFERING MEMORANDUM | CITY CENTER APARTMENTS 24 RENO MULTIFAMILY OVERVIEW

Source - CoStar Analytics

Reno’s strong economic fundamentals have propelled gains in the apartment market. The opening of Tesla’s Gigafactory at the Tahoe Reno Industrial Center could be pivotal for Population and employment growth have been notable in recent years, significantly outpacing the local economy and apartment demand. The State of Nevada proved that it’s willing to the national averages. Pressure on the single family housing market has also fueled gains. cut huge tax deals for large companies that do business here when it agreed to forgive 40% Strong in-migration trends this cycle has led to strong demand for housing, and as the cost of of Tesla’s taxes for 20 years, which will ultimately cost $1.3 billion in lost revenues. Once buying a home has surged in recent years, many would-be homeowners have been priced the $5 billion project is complete, it is expected to employ about 6,500 workers. The first out of the market and become renters by necessity. As a result vacancies, while about 100 phase delivered in 2016, and 4,000 people now work there, almost half of them as temporary basis points above the 17Q2 cyclical low, were below the metro’s mid-single digit historical construction workers. The facility is expected to be fully operational by 2019. At that point, average as of May 2018. the Gigafactory will be nearly twice its current size and produce half the world’s lithium-ion batteries. The acquisitions of 1,200 acres by Google for a future data center, and Apple’s The diversifying economy has Reno looking to emerge as a metro reliant on more than just expanding presence are poised to continue the momentum, making Reno a popular casino tourism. Convenient access to Western states and minimal regulations (interstate destination for investment by major tech firms. trucking isn’t regulated in Nevada) make Reno an increasingly attractive local and regional distribution hub. With the presence of Union Pacific railroad and a number of trucking and While more than 4,000 units were under construction as of 18Q2, the metro economy remains airline carriers, it is possible to ship from Reno to around 80% of the 11 western states on a healthy, and vacancies are not expected to rise dramatically over the next several years. next-day basis. Recent industrial leases have been dominated by retail companies such as Arrow Electronics and Panasonic,Ove rasvie well was fulfillment centers operated by Jet.com and Fosdick. Downtown Reno Multi-Family 12 Mo. Delivered Units 12 Mo. Absorption Units Vacancy Rate 12 Mo. Asking Rent Growth 2,04812 Mo. Delivered Units 122,067 Mo. Absorption Units 6.1%Vacancy Rate 12 Mo. 6.2%Asking Rent Growth 160 197 3.6% 7.2% KEY INDICATORS INDICATORS

Absorption Under Constr Current Quarter Units Vacancy Rate Asking Rent Effective Rent Delivered Units Units Units 4 & 5 Star 129 5.9% $1,548 $1,536 2 0 0 3 Star 1,084 3.1% $876 $871 (1) 0 0 1 & 2 Star 2,341 3.7% $733 $727 (4) 0 0 Submarket 3,554 3.6% $831 $825 (3) 0 0

Historical Forecast Annual Trends 12 Month Peak When Trough When Average Average Vacancy Change (YOY) -1.3% 5.4% 3.6% 7.9% 2013 Q2 3.0% 2000 Q4 Absorption Units 197 15 46 253 2017 Q4 (50) 2009 Q3 Delivered Units 160 17 40 243 2017 Q4 0 2016 Q4 Demolished Units 0 0 0 0 2018 Q1 0 2018 Q1 Asking Rent Growth (YOY) 7.2% 2.3% 2.5% 8.4% 2001 Q1 -6.4% 2009 Q4 Effective Rent Growth (YOY) 6.9% 2.3% 2.5% 8.6% 2001 Q1 -6.5% 2009 Q4 Sales Volume $39.9 M $6.0 M N/A $41.3 M 2018 Q1 $0 2007 Q1

OFFERING MEMORANDUM | CITY CENTER APARTMENTS 25

5/21/2018 Copyrighted report licensed to Colliers International - 551709. Page 78 Vacancy Reno Multi-Family

Reno’s strong economic fundamentals have propelled fulfillment centers operated by Jet.com and Fosdick. gains in the apartment market. Population and The opening of Tesla’s Gigafactory at the Tahoe Reno employment growth have been notable in recent years, Industrial Center could be pivotal for the local economy significantly outpacing the national averages. Pressure and apartment demand. The State of Nevada proved that on the single family housing market has also fueled it’s willing to cut huge tax deals for large companies that gains. Strong in-migration trends this cycle has led to do business here when it agreed to forgive 40% of strong demand for housing, and as the cost of buying a Tesla’s taxes for 20 years, which will ultimately cost $1.3 home has surged in recent years, many would-be billion in lost revenues. Once the $5 billion project is homeowners have been priced out of the market and complete, it is expected to employ about 6,500 workers. become renters by necessity. As a result vacancies, The first phase delivered in 2016, and 4,000 people now while about 100 basis points above the 17Q2 cyclical work there, almost half of them as temporary low, were below the metro’s mid-single digit historical construction workers. The facility is expected to be fully average as of May 2018. operational by 2019. At that point, the Gigafactory will be nearly twice its current size and produce half the world’s The diversifying economy has Reno looking to emerge lithium-ion batteries. The acquisitions of 1,200 acres by as a metro reliant on more than just casino tourism. Google for a future data center, and Apple’s expanding Convenient access to Western states and minimal presence are poised to continue the momentum, making regulations (interstate trucking isn’t regulated in Nevada) Reno a popular destination for investment by major tech make Reno an increasingly attractive local and regional firms. distribution hub. With the presence of Union Pacific RENOrailroad and a number MULTIFAMILYof trucking and airline carriers, it is VACANCY While more than 4,000 units were under construction as possible to ship from Reno to around 80% of the 11 of 18Q2, the metro economy remains healthy, and western states on a next-day basis. Recent industrial vacancies are not expected to rise dramatically over the Sourceleases - CoStar have been Analytics dominated by retail companies such next several years. as Arrow Electronics and Panasonic, as well as Vacancy Reno Multi-Family ABSORPTION, NET DELIVERIES & VACANCY VACANCY RATE ABSORPTION, NET DELIVERIES & VACANCY Vacancy VACANCY RATE Reno Multi-Family

VACANCY RATE

VACANCY BY BEDROOM

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OFFERING MEMORANDUM | CITY CENTER APARTMENTS 26 PREPARED BY: 69 countries Tom Naseef, CCIM, SIOR Garry Cuff, CCIM Senior Vice President | Las Vegas Vice President | Las Vegas +1 702 836 3720 +1 702 836 3716 $2.7 [email protected] [email protected] billion in Ted Stoever Jeff Naseef annual revenue* Senior Vice President | Reno Associate | Las Vegas +1 775 823 4665 +1 702 836 3731 [email protected] [email protected] 2.0 billion square feet under management 15,400 professionals and staff $116 billion in total transaction value

*All statistics are for 2017, are in U.S. dollars and include affiliates.

Copyright © 2018 Colliers International. The information contained herein has been obtained from sources deemed reliable. While every reasonable effort has been made to ensure its accuracy, we cannot guarantee it. No responsibility is assumed for any inaccuracies. Readers are encouraged to consult their professional advisors prior to acting on any of the material contained in this report.

OFFERING MEMORANDUM | CITY CENTER APARTMENTS 27