Offering Memorandum

OFFERING MEMORANDUM

St. Charles Place Apartments 226 Units | 2000 Old Minden Road, Bossier City, LA

John A. Hamilton Luke Nicholls [email protected] [email protected]

For additional information, please contact the agents at this toll free number: 1-877-806-4791 330 Marshall Street, Suite 200 | Shreveport, LA 71101 | website: www.vintagemultifamily.com Table of Contents:

1 - Market Analysis...... Page 3

2 - Location Highlights/Demographics...... Page 4

3 - Property Overview...... Page 7

4 - Maps and Aerials...... Page 8

5 - Amenities...... Page 11

6 - Comparable Rentals...... Page 12

7 - Financials/Proforma...... Page 14

8 - Comparable Sales...... Page 16

9 - Final Evaluation...... Page 18

10 - Vintage Realty Company & Agent Overview...... Page 19

Strong Demand – St. Charles Place apartments is located in the heart of Bossier City, Louisiana. Bossier City is home to the mostly solid middle and working class of Shreveport-Bossier City area. St. Charles Place is in close proximity to I-20 and Highway 3, some of the area’s oldest and most established businesses, other apartment communities, hotels, restaurants, car dealerships, and schools. St. Charles, with its strategic location within Bossier City, combined with continued strong management, is in a position to flourish for years to come. Considerable capital expenditures have been spent improving the property over the last five years on St. Charles place resulting in a property in excellent overall condition. Rental Analysis – The study of the rents and occupancy in the Bossier rental market from comparable properties has shown rental growth is still strong. Comparable occupancy in the immediate area is well above 90% and in some cases closer to 95%. Averages in 1970’s and 1980’s vintage properties are reaching over a $1.00 square foot in some cases. Unit upgrades at St. PROPERTY HIGHLIGHTS PROPERTY Charles have been initiated indicating an average increase in almost $80 per unit (See proforma and notes for renovated unit premium). Because the Bossier rental market remains relatively strong, a property with strong management that strives for an improved, cutting-edge product can continue to flourish. Market Analysis – In 2014, the Bossier market was as strong as it has ever been and owners began the attempts to take advantage of the robust climate by increasing the rates across the city. As a natural result, vacancy climbed through 2015 and 2016 which resulted in owners making small corrections to rates through those two years. Since 2017 and through 2018 vacancy has begun to drop with rents continuing to slowly increase, indicating a very healthy market. Overall, the market occupancy is very encouraging, holding steady at 93% average across Bossier with occupancy percentages even higher at apartment communities within close proximity to St. Charles Place, and effective rents seem to have stabilized close to the $.90 per square foot range. Properties with strong management teams and well maintained assets continue to lead the way in Bossier, driving the high end of the occupancy scale.

Page | 3 Bossier Vacancy Rate Bossier Effective Rate LOCATION HIGHLIGHTS Shreveport/Bossier City is part of the area called the Ark-La-Tex, a U.S. socio- economic region where Arkansas, Louisiana, Texas, and Oklahoma intersect. The Shreveport—Bossier City MSA is home to Barksdale Air Force Base, Cyber Innovation Center, the CenturyLink Event Center, multiple colleges AREA PROFILE and universities, as well as several upscale riverboat casinos that bring over 2 million tourists to the area each year.

Shreveport/ North Louisiana’s 14 parishes of over 815,000 residents boast some of the Bossier City most vibrant and diverse economies in the nation. The population within a 20 Alexandria Baton mile radius of Shreveport Bossier in 2010 was 365,719 with a projected 2022 Rouge population of 395,235. Source: US Census Bureau and ESRI forecasts.

Northwest Louisiana supports a large and sophisticated healthcare sector, a competitive manufacturing base, a reenergized oil and gas sector (through the exploration of the Haynesville Shale), a sizeable and diverse service sector and supplier network, a transforming timber/paper industry, a hospitality/ gaming industry, federal installations and more.

REGIONAL CITIES AND THEIR DISTANCE FROM BOSSIER CITY, LOUISIANA INCLUDE:

El Dorado, AR 96 miles Little Rock, AR 212 miles Monroe, LA 98 miles Jackson, MS 219 miles Alexandria, LA 125 miles Houston, TX 240 miles Vicksburg, MS 175 miles New Orleans, LA 328 miles Dallas, TX 186 miles Oklahoma City, OK 390 miles

Page | 4 Executive Summary

2000 Old Minden Rd, Bossier City, Louisiana, 71111 Prepared by Esri Rings: 1, 3, 5 mile radii Latitude: 32.51709 DEMOGRAPHIC SNAPSHOT Longitude: -93.71212 1 mile 3 miles 5 miles Median Household Income 2018 Median Household IncomeExe cutive Summary $29,319 $35,594 $39,436 2023 Median Household IncomeExe cutive Summary $31,132 $37,086 $41,320 2000 Old Minden Rd, Bossier City, Louisiana, 71111 Prepared by Esri 2018-2023 Annual Rate 2000 Old Minden Rd, Bossier City, Louisiana, 711111.21% 0.82% Prepared0.94% by Esri Average Household IncomeRings: 1, 3, 5 mile radii Latitude: 32.51709 Rings: 1, 3, 5 mile radii Latitude: 32.51709 Longitude: -93.71212 2018 Average Household Income $37,529 $47,392 Longitude: -93.71212$59,389 2023 Average Household Income $40,7711 mile $51,2003 miles $63,7485 miles 1 mile 3 miles 5 miles Population2018-2023 Annual Rate 1.67% 1.56% 1.43% Median Household Income Per2000 Capita Population Income 8,931 53,500 117,509 2018 Median Household Income $29,319 $35,594 $39,436 20182010 PePorpulation Capita Income $17,1579,388 $20,63752,871 $25,223117,229 2023 Median Household Income $31,132 $37,086 $41,320 20232018 PePorpulation Capita Income $18,6359,903 $22,18155,761 $26,978121,560 2018-2023 Annual Rate 1.21% 0.82% 0.94% 2018-20232023 Population Annual Rate 10,1871.67% 56,8781.45% 123,1811.35% Average Household Income Households2000-2010 byAnnual Income Rate 0.50% -0.12% -0.02% 2018 Average Household Income $37,529 $47,392 $59,389 2010-2018 Annual Rate 0.65% 0.65% 0.44%

Current median household income is $39,436 in the area, compared to $58,100 for all U.S. households. Median household income is DEMOGRAPHIC SNAPSHOT 2023 Average Household Income $40,771 $51,200 $63,748 projected2018-2023 to be Annual $41,320 Rate in fiveExe years,cutive compared toSummary $65,727 for all U.S. households0.57% 0.40% 0.27% 2018-20232018 Male PoAnnualpulation Rate 1.67%48.4% 1.56%49.5% 1.43%48.9% PerCurrent2018 Capita Feavemale raIncomege Po householdpulation income2000 is Old $59,389 Minden in Rd,this Bossierarea, compared City, Louisiana, to $83,694 71111 51.6%for all U.S. households. Avera50.5%ge household incomePrepared is51.1% by Esri projected to be $63,748 in five years, compared to $96,109 for all U.S. households 2018 PeMedianr Capita Age Income Rings: 1, 3, 5 mile radii $17,15732.3 $20,63732.7 Latitude: $25,22332.5170935.3 2023 Per Capita Income $18,635 $22,181 Longitude: -93.71212$26,978 InCurrent the identified per capita area, income the currentis $25,223 year in population the area, comparedis 121,560. to In the 2010, U.S. tperhe Ccapitaensus incomecount in of the $31,950. area wa Thes 117,229. per capita The income rate of is change projected since to 2018-2023 Annual Rate 1.67% 1.45% 1.35% 2010be $26,978 was 0.44% in five annual years,ly. compared The five-year to $36,530 projection for allfor U.S. the populationhouseholds in the area is 1123,181 mile representing a change3 miles of 0.27% annually5 from miles HouseholdsMedian2018 to 2023.Household by Currentl Income Incomey, the population is 48.9% male and 51.1% female. Housing CurrentMedian2018 MedianmedianAge Household household Income income is $39,436 in the area, compared to $58,100$29,319 for all U.S. households. Median$35,594 household income is $39,436 2000 Total Housing Units 4,598 24,935 51,998 projected2023 Median to be $41,320Household in Incomefive years, compared to $65,727 for all U.S. households$31,132 $37,086 $41,320 The median2000 Owner age in Occupied this area Housing is 32.3, Unitscompared to U.S. median age of 38.3. 1,581 9,329 25,796 2018-2023 Annual Rate 1.21% 0.82% 0.94% RaceCurrent2000 and ave ReEthnicityranterge household Occupied Housingincome isUnits $59,389 in this area, compared to $83,694 2,414for all U.S. households. Avera12,588ge household income is20,822 Averageprojected Householdto be $63,748 Income in five years, compared to $96,109 for all U.S. households 20182000 White Vacant Alone Housing Units 44.7%603 47.9%3,018 51.8%5,380 2018 Average Household Income $37,529 $47,392 $59,389 Current20182010 BlackTopertal capita HousingAlone income Units is $25,223 in the area, compared to the U.S. per capita42.0%4,608 income of $31,950. The24,351 per40.7% capita income is projected52,81440.1% to 2023 Average Household Income $40,771 $51,200 $63,748 be2018 $26,9782010 American Owner in five OccupiedIndian/Alaska years, compared Housing Native Unitsto $36,530Alone for all U.S. households 1,0.6%352 8,3880.5% 24,7410.5% 2018-2023 Annual Rate 1.67% 1.56% 1.43% 2018 2010 Asian Renter Alone Occupied Housing Units 2,8782.1% 13,6662.2% 23,1921.8% PerHousing Capita Income 20182010 Pac Vaificantc Islander Housing Alone Units 0.3%378 2,2970.2% 4,8810.1% 20182000 PeOtherTotalr Capita Housing Race Income Units $17,1574,5984,9046.3% $20,63724,93525,6415.0% $25,22351,99855,0142.9% 2023201820182000 PeTw rOwnero Capitaor More Occupied Income Races Housing Units $18,6351,1761,5814.0% $22,1817,5809,3293.5% $26,97823,30125,7962.7% 2018-2023201820182000 Hispanic Renter Annual OriginOccupied Rate (Any Housing Race) Units 1.67%13.2%3,2902,414 15,49512,5881.45%10.3% 26,15220,8221.35%6.7% Households20182000 Va cantby Income Housing Units 438603 2,5673,018 5,5615,380 Persons of Hispanic origin represent 6.7% of the population in the identified area compared to 18.3% of the U.S. population. Persons of Current2010 Tomediantal Housing household Units income is $39,436 in the area, compared to $58,100 f4,608or all U.S. households. Median24,351 household income is 52,814 Hispanic2023 To Origintal Housing may be Units of any race. The Diversity Index, which measures the probability5,098 that two people from26,468 the same area will be from56,535 projected2010 toOwner be $41,320 Occupied in fiveHousing years, Units compared to $65,727 for all U.S. households1,352 8,388 24,741 different2023 ra Ownerce/ethnic Occupied groups, Housing is 62.4 Unitsin the identified area, compared to 64.3 for the1,239 U.S. as a whole. 7,882 23,977 2010 Renter Occupied Housing Units 2,878 13,666 23,192 Current2023 ave Reranterge household Occupied Housingincome isUnits $59,389 in this area, compared to $83,694 3,364for all U.S. households. Avera15,653ge household income is26,096 Households2010 Vacant Housing Units 378 2,297 4,881 projected2023 toVa becant $63,748 Housing in Units five years, compared to $96,109 for all U.S. households494 2,933 6,462 20002018 HouseholdsTotal Housing Units 4,9043,995 25,64121,917 55,01446,618 CurrentlCurrent20102018 y,Householdsper 42.4%Owner capita Occupiedof income the 55,014 is Housing $25,223 housing Units in theunits area, in the compared area are t ownero the U.S. occupied; per capita 47.5%,1,1764, income230 renter of $31,950.occupied; Theand 22,054per10.1%7,580 capita are income vacant. is Currently,projected23,30147,933 into Page | 5 thebe2018 $26,978 U.2018S., To 56.0% talRe in nterHouseholds five of Occupied yethears, housing compared Housing units toUnits in $36,530 the area for are all owner U.S. hoccupied;ouseholds 32.8% are renter3,2904,466 occupied; and 11.2%15,49523,074 are vacant. In 2010, there26,15249,453 were 52,814 housing units in the area - 46.8% owner occupied, 43.9% renter occupied, and 9.2% vacant. The annual rate of change in 2023 2018 To talVa cantHouseholds Housing Units 4,604438 23,5352,567 50,0735,561 Housinghousing units since 2010 is 1.83%. Median home value in the area is $139,446, compared to a median home value of $218,492 for the U.S. In 20232000-2010five ye Toars,tal HousingmedianAnnual RatevalueUnits is projected to change by 1.54% annually to $150,514.0.57%5,098 26,4680.06% 56,5350.28% 2000 Total Housing Units 4,598 24,935 51,998 2010-20182023 Owner Annual Occupied Rate Housing Units 0.66%1,239 0.55%7,882 23,9770.38% 2000 Owner Occupied Housing Units 1,581 9,329 25,796 2018-20232023 Renter Annual Occupied Rate Housing Units 0.61%3,364 15,6530.40% 26,0960.25% 2000 Renter Occupied Housing Units 2,414 12,588 20,822 20182023 Ave Varacantge HouseholdHousing Units Size 2.18494 2,9332.29 6,4622.35 2000 Vacant Housing Units 603 3,018 5,380 CurrentlThe2010 household y,To tal42 .4%Housing count of the in Units this55,014 area housing has changed units infrom the 47,933area are in owner2010 tooccupied; 49,453 in47.5%, the4,608 current renter year, occupied; a change and24,351 of10.1% 0.38% are annuall vacant.y. Currently,The five52,814-ye inar projection of households is 50,073, a change of 0.25% annually from the current year total. Average household size is currently 2.35, the U.2010S., 56.0% Owner of Occupied the housing Housing units Units in the area are owner occupied; 32.8% are renter1,352 occupied; and 11.2%8,388 are vacant. In 2010, there24,741 werecompared 52,814 to 2.34housing in the units ye arin the2010. area The - 46.8%number owner of families occupied, in the 43.9% current renter year oisccupied, 27,708 andin t he9.2% specified vacant area.. The annual rate of change in 2010 Renter Occupied Housing Units 2,878 13,666 23,192 housing units since 2010 is 1.83%. Median home value in the area is $139,446, compared to a median home value of $218,492 for the U.S. In five2010 years, Vacant median Housing value Units is projected to change by 1.54% annually to $150,514. 378 2,297 4,881 2018 Total Housing Units 4,904 25,641 55,014 2018 Owner Occupied Housing Units 1,176 7,580 23,301 2018 Renter Occupied Housing Units 3,290 15,495 26,152 2018 Vacant Housing Units 438 2,567 5,561 2023 Total Housing Units 5,098 26,468 56,535 Data Note:2023 Income Owner is expressed Occupied in c urrentHousing dollars Units 1,239 7,882 23,977 Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2018 and 2023. Esri converted Census 2000 data into 2010 geography. 2023 Renter Occupied Housing Units 3,364 15,653 26,096 2023 Vacant Housing Units 494 2,933 September 04,6,462 2018

Currently, 42.4% of the 55,014 housing units in the area are owner occupied; 47.5%, renter occupied; and 10.1% are vacant. Currently, in ©2018 Esri Page 2 of 2 the U.S., 56.0% of the housing units in the area are owner occupied; 32.8% are renter occupied; and 11.2% are vacant. In 2010, there were 52,814 housing units in the area - 46.8% owner occupied, 43.9% renter occupied, and 9.2% vacant. The annual rate of change in housing units since 2010 is 1.83%. Median home value in the area is $139,446, compared to a median home value of $218,492 for the U.S. Data NoIn tefive: Income years, is median expressed value in current is projected dollars to change by 1.54% annually to $150,514. DaSource:ta No teU.S.: Income Census is Bureau, expressed Census in current 2010 Summarydollars File 1. Esri forecasts for 2018 and 2023. Esri converted Census 2000 data into 2010 geography. Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2018 and 2023. Esri converted Census 2000 data into 2010 geography. September 04, 2018 September 04, 2018

Data Note: Income is expressed in current dollars Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2018 and 2023. Esri converted Census 2000 data into 2010 geography.

September 04, 2018

MAJOR EMPLOYERS (OVER 1,000 EMPLOYEES) Barksdale Air Force Base 14,500 Caddo Parish Public Schools 9,416 AREA RANKINGS Willis-Knighton Medical Center 6,732 Bossier Parish School Board 3,000 North Louisiana Ranks as #1 Lowest Cost of Doing Business Study by nlep.com, 2017 LSU Health Shreveport 2,762 AREA PROFILE University Health 2,673 Shreveport—Bossier MSA ranked #10 for Economic Development City of Shreveport 2,569 Site Selection, March 2012 Horseshoe Bossier City 2,532 Listed in the Top 19 Places Where It May Be Easier To Make Your Mark Christus Schumpert Highland 1,800 Forbes.com, September 2014 US Dept. of Veterans Affairs 1,682 Teleperformance, Inc. 1,623 Shreveport among Top 20 Fastest Growing Cities in U.S. Wal-Mart Stores, Inc. 1,501 NerdWallet.com, June 2013 Sam’s Town Casino 1,265 Eldorado Resort Casino 1,214 Shreveport ranks #1 Place to Start A Business Diamond Jacks Casino 1,200 WalletHub, 2016 State of Louisiana Admin 1,200 State of Louisiana Goverment 1,180 Shreveport ranks Number 4 Nationally for Economic Potential Margaritaville Resort Casino 1,052 nlep.com, 2017 Source: North Louisiana Economic Partnership nlep.org

Shreveport-Bossier MSA ranks No. 10 for Lowest Cost of Living Business Facilities, 2017

Ten Oil & Gas Rich Markets that Offer Plenty to Non-Oil Related Companies Southern Business & Development, April 2013

Benteler Steel/Tube among “Top North American Deals of 2012” 2nd largest investment in the U.S. during 2012 Site Selection, May 2013

North Louisiana ranks as the no.1 most cost competitive with a Business Index of 91.3.

AREA RANKINGS KPMG Competitive Alternatives, 2016

Shreveport-Bossier MSA ranks No. 2 as an Emerging Cybersecurity Hub Business Facilities, 2017

Shreveport ranks in “Top Ten of Millennial Friendly Cities.” Bloomberg Business, 2015 Page | 6 St. Charles Place Apartments | Cottages | Townhomes

226 Units | 2000 Old Minden Road, Bossier City, LA

Property Highlights:

Units: 226 Average Square Feet: App. 854 Year Built: 1971 Site Acreage: Approximately 5.00 acres Total Square Feet: 337,020 Type of Building: Two Story Garden Style

This quality community offers residents nine (9) floor plans, averaging 854 square feet, including: 86 one bedroom/one bath units (564-707 square feet), 94 two bedroom/one bath units (903-997 square feet),14 two bedroom/one-and-a-half bath units (1150 square feet), 32 two bedroom/ two bath units (965-1325 square feet). The 22 two-story garden style buildings are constructed of mostly vinyl siding with combination flat and pitched roofs. The wiring is aluminum and copper in the walls, and aluminum in the mains, and all switches, outlets, and fixtures are COPALUM crimping. The plumbing is copper and ductile iron. The soil system is cast iron, and the vent system is PVC. Water and Electricity are paid by the property but billed back to residents via inclusion in rents (or a RUBS)

Page | 7 LOCATION: ST. CHARLES 2000 Old Minden Road, Bossier City, LA 71111

St. Charles LOCATION DESCRIPTION LOCATION

St. Charles

Page | 8 NEIGHBORHOOD AERIAL: ST CHARLES 2000 Old Minden Road, Bossier City, LA 71111 AERIAL

Bossier Corners Shopping Center Regal Cinema E. Texas St./Hwy 80 Bossiers Busiest Pierre Bossier Intersection Regional Mall 54,914+ Cars Per Day

Downtown Bossier City St. Charles Barksdale Air Downtown Force Base Shreveport 14,500+ Employees

Page | 9 SITE PLAN/AERIAL VIEW: ST CHARLES

N SITE PLAN

Page | 10 ST. CHARLES AMENITIES

Unit Amenities AMENITIES Air Conditioning Faux Wood Flooring Dishwasher Fireplace (select units) Microwave Mini and Vertical Blinds Private Patios and Balconies Walk-in Closets Cable/Satellite TV

Community Amenities: 24 Hour Emergency Service 2 Swimming Pools Laundry Facility Clubroom 24 hour Fitness Select Covered Parking Centrally Located On-site Management Courtesy Officer

Page | 11 COMPARABLE PROPERTIES - RENTAL

1 2 3 SUBJECT: St. Charles Preston Place Port Au Prince Northgate Square 2000 Old Minden Rd. 400 Preston Blvd 400 Preston Blvd 310 Industrial Drive Bossier City, LA 71111 Bossier City, LA 71111 Bossier City, LA 71111 Bossier City, LA 71111 COMPARABLES - RENTAL COMPARABLES

Units: 226 Units: 148 Units: 123 Units: 128 Built: 1971 Built: 1985 Built: 1984 Built: 1979 Occupancy: 93% Occupancy: 93% Occupancy: 98% Occupancy: 95% Avg. SF: 861 Avg. SF: 717 Avg. SF: 895 Avg. SF: 651 Avg Rent: $629 Avg Rent: $850 Avg Rent: $691 Avg Rent: $634 Avg Rent / SF: $0.73 Avg Rent / SF: $1.18 Avg Rent / SF: $0.77 Avg Rent / SF: $0.97

4 5 Mission Village (The Drake) Village Square N/S 400 John Wesley Blvd 2205 Beckett St Bossier City, LA 71111 Bossier City, LA 71111

Units: 200 Units: 92 Built: 1972 Built: 1971 Occupancy: 86% Occupancy: 96% Avg. SF: 884 Avg. SF: 712 Avg Rent: $638 Avg Rent: $645 Page | 12 Avg Rent / SF: $0.72 Avg Rent / SF: $0.91 COMPARABLE PROPERTIES - RENTALS

3 1&2

St. Charles 4 - RENTAL MAP OF COMPARABLES

Preston Place Port Au Prince Northgate Square Mission Village Village Square N/S 1 400 Preston Boulevard 2 400 Preston Boulevard 3 310 Industrial Drive 4 400 John Wesley Blvd 5 205 Beckett St. Bossier City, LA 71111 Bossier City, LA 71111 Bossier City, LA 71111 Bossier City, LA 71111 Bossier City, LA 71111

Page | 13 FINANCIALS - PROFORMA ST. CHARLES

Discounted Cash Flow Variables Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10

Rent Bumps/Escalation 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% Escalation for Expenses 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% Taxes on Property 0.00% 75.00% 0.00% 0.00% 0.00% 0.00% 0.00% 10.00% 0.00%

Loss To Lease 13.00% 12.00% 10.00% 8.00% 8.00% 8.00% 8.00% 8.00% 8.00% 8.00% PROFORMA Vacancy Loss/Concessions/Non Revenue 8.00% 5.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% Fee Income Growth Rate 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00%

10 year Cash Flow Projections

Acquisition EOY1 EOY2 EOY3 EOY4 EOY5 EOY6 EOY7 EOY8 EOY9 EOY10

Income Scheduled Market Rent $1,924,872 $1,969,330 $2,014,233 $2,059,585 $2,105,391 $2,138,080 $2,159,461 $2,181,055 $2,202,866 $2,224,894 Less: Loss to Lease ($250,233) ($236,320) ($201,423) ($164,767) ($168,431) ($171,046) ($172,757) ($174,484) ($176,229) ($177,992)

Less: Vacancy Loss/Concessions/Non Revenue ($153,990) ($161,689) ($166,540) ($171,536) ($176,682) ($181,983) ($187,442) ($193,065) ($198,857) ($204,823) Plus: Renovated Interior/Exterior (48 units/year@$80) $24,960 $24,960 $24,960 $24,960 $11,520

Projected Scheduled Market Rent $1,949,832 $1,994,290 $2,039,193 $2,084,545 $2,116,911 $2,138,080 $2,159,461 $2,181,055 $2,202,866 $2,224,894 Net Rental Income $1,545,609 $1,596,281 $1,671,230 $1,748,242 $1,771,797 $1,785,051 $1,799,262 $1,813,505 $1,827,779 $1,842,080 Plus: Fee Income $75,000 $75,750 $76,508 $77,273 $78,045 $78,826 $79,614 $80,410 $81,214 $82,026 Plus: Other Income $250,000 $252,500 $255,025 $257,575 $260,151 $262,753 $265,380 $268,034 $270,714 $273,421 Total Operating Income $1,870,609 $1,924,531 $2,002,762 $2,083,090 $2,109,993 $2,126,629 $2,144,256 $2,161,949 $2,179,707 $2,197,527

Operating Expenses Administrative $ 50,000 $ 50,500 $ 51,005 $ 51,515 $ 52,030 $ 52,551 $ 53,076 $ 53,607 $ 54,143 $ 54,684 Advertising & Promotion $ 20,000 $ 20,200 $ 20,402 $ 20,606 $ 20,812 $ 21,020 $ 21,230 $ 21,443 $ 21,657 $ 21,874 Payroll $ 250,000 $ 252,500 $ 255,025 $ 257,575 $ 260,151 $ 262,753 $ 265,380 $ 268,034 $ 270,714 $ 273,421 Building/Maintenance Expense $ 175,000 $ 176,750 $ 178,518 $ 180,303 $ 182,106 $ 183,927 $ 185,766 $ 187,624 $ 189,500 $ 191,395 Common Area $ 35,000 $ 35,350 $ 35,704 $ 36,061 $ 36,421 $ 36,785 $ 37,153 $ 37,525 $ 37,900 $ 38,279 Management Fee $ 56,000 $ 56,560 $ 57,126 $ 57,697 $ 58,274 $ 58,857 $ 59,445 $ 60,040 $ 60,640 $ 61,246 Utilites - Electric/Gas $ 130,000 $ 131,300 $ 132,613 $ 133,939 $ 135,279 $ 136,631 $ 137,998 $ 139,378 $ 140,771 $ 142,179 Utilities - Water/Sewer $ 120,000 $ 121,200 $ 122,412 $ 123,636 $ 124,872 $ 126,121 $ 127,382 $ 128,656 $ 129,943 $ 131,242 Real Estate Taxes $ 70,000 $ 70,000 $ 122,500 $ 122,500 $ 122,500 $ 122,500 $ 122,500 $ 122,500 $ 134,750 $ 134,750 Insurance $ 50,000 $ 50,500 $ 51,005 $ 51,515 $ 52,030 $ 52,551 $ 53,076 $ 53,607 $ 54,143 $ 54,684 Replacement Reserve $ 56,500 $ 56,500 $ 56,500 $ 56,500 $ 56,500 $ 56,500 $ 56,500 $ 56,500 $ 56,500 $ 56,500 Total Expenses $ 1,012,500 $ 1,021,360 $ 1,082,809 $ 1,091,847 $ 1,100,975 $ 1,110,195 $ 1,119,507 $ 1,128,912 1,150,661$ $ 1,160,255

Net Operating Income (NOI) $ 858,109 $ 903,171 $ 919,954 $ 991,243 $ 1,009,018 $ 1,016,434 $ 1,024,749 $ 1,033,037 $ 1,029,046 $ 1,037,272

Important Information/Disclaimer: The information obtained herein is assumed to be correct and market supported. Output produced from this model should not be considered an appraisal. Projections are forecasts and are not to be considered fact. The information contained in this file is privileged and confidential: it is intended only for use by Vintage Realty and their clients. This file may not be reproduced physically or in electronic format without the written consent of Vintage Realty Company. 11/2018 Page | 14 FINANCIALS - NOTES TO PROFORMA Income Assumptions: the region with a 1% increase annually to account for inflation and historical sub market growth, with some exceptions noted: SCHEDULED MARKET RENT: Represents the latest monthly GPR of $160,406 annualized. ADMINISTRATIVE: Includes all office expenses, legal, licensing, RENOVATED UNIT PREMIUM: This line item includes rental travel, and entertainment, etc. The proforma has reduced this premium by upgrading all 226 units through the next 56 months. number as new ownership may not incur similar charges. Our projections assume that 4 units will be upgraded each month. With an average premium of $80/month for the most recent ADVERTISING: Includes advertising, marketing and promotional. upgrades, we project an additional $24,960 for year one, two, three The proforma has also reduced this considerably as new ownership and four, and $11,520 for year five (update 4/units month for the may not incur similar charges. most recent x $80 premium over 56 months, completing all 226 PAYROLL: Manager, leasing, and maintenance salaries are NOTES TO PROFORMA units in 56 months). This would bring 100% of the units online by included, as well as payroll, overtime and benefits. The pro-forma the third quarter of year five. The renovated unit premium for each has also reduced this a small percentage as new ownership may not year is added to the scheduled market rent of the following year incorporate same payroll structure or benefits. Proforma amount is (approximated using percentages from the variable chart on the 10 still consistent with per unit payroll costs among competitors. year projections with the rent bumps taking the normal 1% bump throughout) BUILDING/MAINTENANCE EXPENSE/COMMON AREA: LESS LOSS TO LEASE/VACANCY LOSS: Studying the trailing 12 A combination of repairs and maintenance, contract services, history of St. Charles in, and with property trending up we project maintenance supplies, repairs, and grounds, all taken from trailing 13% loss to lease which improves considerably over the ten year 12 months expense statements, as well as comparable properties period and 8% vacancy/concession which drops considerably with similar age and amenities. As current ownership group has over the ten year term as market continues its good form. These consistently made property improvements over their span of estimates are in line with historical trends for the property and ownership, we believe that the maintenance expenses with this consistent with the market averages and growth. property will only increase slightly in the near future. FEE INCOME: Includes all income related to lease charges, including MANAGEMENT FEE: Management Fee is approximately 3% of cable and damage fees, forfeited deposits, late charges, month-to- Total Operating Income. month fees, notice fees and NSF fees. UTILITIES: Includes electricity costs, water and sewer, trash OTHER INCOME: Includes pet rent, vending income, and other removal, and vacant apartments. miscellaneous income. Also includes RUBS income for water, sewer, TAXES: We are projecting an increase in taxes in the event of a sale and electricity. with a projected 75% increase in year 3. INSURANCE: Owners current rates are consistent with the market Expense Assumptions: averages and similar rates have been slightly increase in this pro- All expense assumptions are a result of the past twelve months forma. operating history of the property coupled with a detailed look at both the market averages and similar garden style communities in RESERVES: $250 per unit is used for reserves. Page | 15 COMPARABLE PROPERTIES - SALES

1 2 3 Grand Oaks North Park Apartments North Pointe Apartments 1601 North Forty Loop, Shreveport, LA 71107 2500 Montgomery Lane, Bossier City, LA 71111 2604 Benton Road, Bossier City, LA 71111 COMPARABLES - SALES COMPARABLES Built: 1988 Built: 1977 Built: 1984 Units: 73 Units: 110 Units: 104 Price/Unit: $45,205 Price/Unit: $49,090 Price/Unit: $60,577 Sold For: $3,300,000 Sold For: $5,400,000 Sold For: $6,300,000 Closed: 2018 Closed: 2016 Closed: 2017 Cap Rate: 7% Cap Rate: 7.5% Cap Rate: 7%

4 5 6 The Arbors Apartments Castlewood Apartments Village Square North/South 9137 Mansfield Rd, Shreveport, LA 71118 2045 W. Bert Kouns Loop, Shreveport, LA 71118 2687 Village Lane, Bossier City, LA 71112

Built: 1984 Built: 1967 Built: 1979 Units: 172 Units: 122 Units: 134 Price/Unit: $61,046 Price/Unit: $45,942 Price/Unit: $45,335 Sold For: $10,500,000 Sold For: $5,605,000 Sold For: $6,075,000 Closed: 2014 Closed: 2017 Closed: 2018 Cap Rate: 6.5% Cap Rate: 7.8% Cap Rate: 7.25%

Vintage Multifamily sold North Pointe, Castlewood, and Village Square North and South. Additionally we have a similarly constructed Page | 16 1970’s vintage, 194 unit property under contract in Shreveport, LA for approximately $56K per unit, due to close fourth quarter 2018. COMPARABLE PROPERTIES - SALES

3 2 6 St. Charles MAP OF COMPARABLES - SALES MAP OF COMPARABLES

171

4 5

Grand Oaks North Park Apartments North Pointe The Arbors Apartments Castlewood Apartments Village Square N/S 1 1601 N. Forty Loop 2 2500 Montgomery Ln 3 2604 Benton Road 4 9137 Mansfield Rd 5 2045 W. Bert Kouns Loop 6 2687 Village Lane, Shreveport, LA 71107 Bossier City, LA 71111 Bossier City, LA 71111 Shreveport, LA 71118 Shreveport, LA 71118 Bossier City, LA 71112

Page | 17 MARKETING PROCESS Property Visits

Prospective Purchasers will have the opportunity to visit the property via pre scheduled property tours. These tours will include access to a sampling of available units and limited access to property personnel. In order to accommodate the ongoing operations, property visitation will take place the week of December 3-8. No property tours will be allowed under any circumstances without a scheduled appointment and prospective purchasers may not contact the property or visit the property without being accompanied by a representative of Vintage Realty Company. Call for Offers/Bid Deadline is scheduled for December 15th.

Offers should be submitted in the form of a non-binding Letter of Intent, complete with all applicable terms including, but not limited to: FINAL EVALUATION 1) Asset pricing 2) Inspection and closing time frame 3) Deposit amount 4) Description of debt/equity structure 5) Any financing contingencies that might exist 6) Explanation of which parties pay closing costs Offers should be delivered to the attention of John Hamilton at the email address or fax number provided herein. John A. Hamilton | 1-877-806-4791 [email protected]

PagePage || 1818 VINTAGE REALTY COMPANY - FULL SERVICE COMMERCIAL REAL ESTATE PROVIDER

Vintage Realty is a privately owned, full-service commercial real estate provider, specializing in the leasing, management, development and Shreveport brokerage of professional office, medical office, industrial, multi-family and Bossier City Monroe retail properties.

Alvin Childs, Jr. and David Alexander are the principal partners of the organization and began Vintage Realty Company in 1988 to meet the demands of the expanding commercial real estate market in Shreveport, Louisiana. In its over 30 year existence, Vintage has established a strong foothold in 8 additional markets. Alexandria From property acquisition to property management solutions, we provide a complete line of commercial real estate services. Vintage realizes that an owner’s property represents a large investment, therefore Vintage’s core belief is to treat all assets the same - as if they were their own. From preparing and Baton Rouge following budgets to implementing marketing plans, contract negotiations to Gonzales Lafayette Covington closings, Vintage ensures that a property gets the attention it deserves. Sulphur Lake Charles Youngsville The Multi-Family Department was created in 1993 as a response to a client request for development and management of a class A apartment community in Shreveport, LA. Since that initial development, David Alexander has been in charge of the numerous projects totaling 3,811 units throughout Louisiana and Arkansas with another 760 units in the development phase. The current Vintage multi-family portfolio represents a total Established Communities market value of approximately $450,000,000. (February 2018) The Multi Family Department at Vintage Realty Company has enjoyed a reputation as one Under Construction or In Development of the most progressive and dynamic apartment development, management and brokerage firms in Louisiana.

Page | 19 AGENT INFORMATION - JOHN A. HAMILTON

John A. Hamilton is a graduate of Louisiana State University in Shreveport in Business and Administration. After spending his first three years after graduation with a local Shreveport firm, he started Hamilton & Associates Real Estate Companies that specialized in the brokerage and development of all classifications of Multi-Family. John now brings his expertise to Vintage Realty Company to offer the full complement of consulting, development, brokerage, and management to all his Multi-Family clients. John A. Hamilton and Vintage Realty Company are licensed in and operate in Arkansas, Mississippi and Louisiana.

To contact John, call 318-222-2244 or email him at [email protected].

Below are some of the Multi-Family Properties sold by John A. Hamilton and Luke Nicholls in recent years:

Live Oaks Apartments Parc at Ridgeland Apartments Bayou Rouge Apartments Towne Oaks Apartments Villa Norte Apartments Brighton Manor Apartments Chimney Hill Apartments Brandywine Apartments Centrum Apartments Hampton House Apartments Pines Apartments Cordova Apartments Grimmett Drive Apartments Towers Apartments Country Club Marina Apartments Park Place Apartments Briarwood Apartments Colony Square Apartments Briarwood Apartments Laurel Park Apartments Northgate Apartments Camellia Trace Apartments Orleans Square Apartments Quail Creek Apartments Hudson Place Apartments Stone Canyon Apartments Shirewood Apartments Guthrie Creek Apartments Southern Oaks Apartments Southport Apartments Kings Manor I Apartments Northwood Lake Apartments Tiffany Square Apartments Chateau Normady North Forty Estates Woodlawn Terrace Apartments Kings Manor II Apartments River Oaks Apartments

Page | 20 AGENT INFORMATION - LUKE NICHOLLS

Luke is licensed Commercial Real Estate Agent focusing on Multi-Family Brokerage and Development at Vintage Realty Company in Shreveport, Louisiana. He partners with John Hamilton to form a multi-family brokerage team that can provide a wide range of services to multi-family clients in Louisiana, Mississippi, Texas, and Arkansas.

Luke has been working in the commercial real estate market since 2014, and has experience in asset management, budgeting, real estate valuations, and brokerage.

Luke holds a Bachelor’s of Science in Accounting from Louisiana State University-Shreveport. In addition, Luke studied International economics, business relations, and business law in Luneburg, Germany at Leuphana Universitad.

To contact Luke, email [email protected] or call 318-222-2244 x 686.

Page | 21 For additional information, please contact the agent at this toll free number: 1-877-806-4791 John A. Hamilton Luke Nicholls [email protected] [email protected]

For additional information, please contact the agents at this toll free number: 1-877-806-4791 330 Marshall Street, Suite 200 | Shreveport, LA 71101 | website: www.vintagemultifamily.com