ALLEN HILLS 458 UNITS (99% HAP)

Atlanta,GA | Two Project-Based Section 8 (HAP) Communities | Offered Individually or as a Portfolio ROLLING BENDS 354 UNITS (100% HAP) INVESTMENT HIGHLIGHTS INVESTMENT HIGHLIGHTS

PROPERTY OVERVIEW BOOMING DEVELOPMENT CORRIDOR ECONOMIC HUB OF THE SOUTHEAST Surrounded by over $1.5B in current or planned development projects, Allen Standing out as a city of choice for Fortune 500 firms, due to a growing Property Name: ALLEN HILLS ROLLING BENDS Hills and Rolling Bends sit at the center of West Atlanta’s booming development population with spending power, and a robust economy surging with record- corridor. Nearby development projects that are currently underway or planned level momentum, Atlanta has cemented itself as the economic hub of the Address: 3086 Middleton Rd NW 2500 Center St NW for the near-term include: UPS’s $400M Majestic Logistics Center, the City of Southeast. Year-over-year job growth in March 2017 surpassed 103,000 Atlanta’s $300M Bellwood Quarry project, the 300-acre Westside Reservoir jobs, marking a 3.9% annual increase and the largest percentage increase City, State: Atlanta, GA Atlanta, GA Park, and the $50M Proctor Creek Greenway Project. These developments, among large U.S. metropolitan areas. From 2000 to 2010, Atlanta’s population combined with the Properties transit-oriented locations, will further enhance experienced 24% growth, second only to Houston over the same time period. the attractiveness of both Properties and transform the West Atlanta corridor Significant population growth is expected to continue well into the future, with Year Built / Renovated: 1969 / 2002 1974 / 2002 into one of metro Atlanta’s most desirable real estate markets. 732,000 new residents projected between 2015 and 2020, ranking Atlanta fourth among large U.S. metros. Phase I - 164 STABLE, CONSISTENT RETURN PROFILE Units: 458 Phase II - 190 Both Allen Hills and Rolling Bends benefit from project-based Section 8 (HAP) STRONG UNDERLYING APARTMENT FUNDAMENTALS INVESTMENT HIGHLIGHTS | Total - 354 contracts that generate bond-like returns and ensure consistently strong Bolstered by Atlanta’s economic resurgence and population growth, the 2 occupancies and limited turnover. Each Property stands as an ideal investment submarkets surrounding Allen Hills and Rolling Bends have experienced an Income Restrictions: 99% HAP/LIHTC 100% HAP/LIHTC opportunity for an affordable housing owner looking to deploy significant increase in average effective rents of 15% and 28%, respectively, since 1Q13. capital into an inflation protected vehicle that is sheltered from typical market Effective rents in Allen Hill’s “Harwell Heights” submarket are forecasted Phase I - December 31, 2017 End of Year 15: December 31, 2017 volatility. to increase 19.5% over the next five years, while rents in Rolling Bends’ Phase II - December 31, 2018 “Bankhead” submarket are expected to increase an additional 14.1% over the AFFORDABLE HOUSING PRESERVATION OPPORTUNITY Phase I - December 31, 2032 same time period. Furthermore, with only a total of 160 units expected to be The guaranteed rental revenue provided by the HAP contract on each Property, End of Extended Use: December 31, 2032 delivered across both submarkets through 2019, the supply-demand balance Phase II - December 31, 2033 coupled with an income qualified resident base, make Allen Hills and Rolling will continue to remain in favor of owners. 3

| HIGHLIGHTS INVESTMENT Bends ideal candidates for preservation using Tax Exempt Bond financing and Low Income Housing Tax Credits (LIHTCs). Investors that pursue a LIHTC ACHIEVING ECONOMIES OF SCALE THE OFFERING Execution will benefit from: Combined, Allen Hills and Rolling Bends feature 812 units within Atlanta’s city • LIHTC equity to off-set acquisition and renovation costs; limits. The Properties are situated less than three miles from each other near the intersection of Interstates 285 and 20 and a new investor will immediately Holliday Fenoglio Fowler, L.P. (HFF) is pleased to exclusively offer the tremendous • A 30% basis boost to the rehab eligible basis due to each Property’s location create scale within the submarket and/or considerably expand upon their opportunity to acquire and preserve, either individually or as a portfolio, Allen Hills and within a Qualified Census Tract; existing Atlanta portfolio. Furthermore, an operator will be able to recognize Rolling Bends, two multi-housing assets in Atlanta that benefit from project-based Section • Renewal of each Property’s HAP contract for a term of 20 years; economies of scale across local staffing, advertising, and contracting services, 8 (HAP) contracts. Positioned within West Atlanta’s burgeoning development corridor, both thereby reducing operating expenses and improving bottom line performance. • Increased LIHTC pricing from LIHTC investors attracted to Properties with Properties stand poised to benefit from over $1.5B in nearby development activity. Combined, existing HAP contracts and who may also have a CRA need; the Properties offer 812 units within Atlanta’s city limits, allowing a new Investor to immediately • Potential to utilize Georgia State LIHTCs in addition to Federal LIHTCs; create scale within the submarket and/or considerably expand upon their existing Atlanta portfolio. Furthermore, the HAP contracts allow Investors to deploy significant capital into an • Dislocation in municipal bond markets will allow Investors to pursue short- term bonds at historically low interest rates while still qualifying for LIHTCs; inflation protected vehicle that is sheltered from typical market volatility and delivers bond- like returns. • Ability to break chain of title but still receive acquisition credits; and • Potentially obtain accretive soft debt and/or gap financing from local institutions including Invest Atlanta and the Georgia Department of Community Affairs (DCA). INTERACTIVE INVESTMENT HIGHLIGHTS AERIAL

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NEW DEVELOPMENT AND CONNECTIVITY ABOUND • Significant new developments surrounding Allen Hills include UPS’ $400M Majestic Logistics Center and a $60M initiative to improve the Martin Luther King Jr. Drive corridor that runs adjacent to the Property. • Located 1 mile East of Allen Hills, the HE Holmes MARTA Station provides affordable access to some of the area’s top employers. Interstates 285 and 20, as well as Martin Luther King Jr. Drive, connect residents directly to the INVESTMENT HIGHLIGHTS |

4 Atlanta CBD and its surrounding employment hubs.

LARGE, RENOVATED GARDEN COMMUNITY PROPERTY DESCRIPTION • Extensively rehabilitated in 2003 with LIHTC equity. Address: 3086 Middleton Rd NW • Nearly 50% of units have been upgraded to include vinyl 134,600 AADT City, State: Atlanta, GA hardwood floors, new black appliances, and new wooden kitchen cabinets. Year Built / Renovated: 1969 / 2002

STRONG APARTMENT MARKET FUNDAMENTALS 5 | HIGHLIGHTS INVESTMENT Units: 458 • Effective rents in the Harwell Heights submarket have Income Restrictions: 99% HAP/LIHTC increased of 5.2% over the past 12 months. End of Year 15: December 31, 2017 • Effective rents in the submarket are projected to increase End of Extended Use: December 31, 2032 19.5% over the next five years.

UNIT MIX

Current Contract 140% of Median Unit Type # of Units SF Rents Current FMR Gross Rent (HUD) 2 Bed, 1 Bath, HAP 310 734 $783 $990 $1,110

2 Bed, 1 Bath with Den, HAP 14 833 $833 $990 $1,110

3 Bed, 1 Bath, HAP 133 833 $833 $1,299 $1,110

Office/Non-Revenue Unit 1 833 $833 $1,299 $1,110 133,200 AADT

Totals / Avg. 458 766 $799 $1,080 $1,110 INTERACTIVE INVESTMENT HIGHLIGHTS AERIAL

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BURGEONING DEVELOPMENT CORRIDOR • Over $1.5B in nearby developments are currently underway or planned for the near future, including the $300M Bellwood Quarry Project, the $38M Westside Reservoir Park, and the $50M Proctor Creek Greenway, which runs directly adjacent to Rolling Bends.

CONVENIENT LOCATION NEAR ECONOMIC CORE

• The Property benefits from superior connectivity provided INVESTMENT HIGHLIGHTS | 6 by multiple major thoroughfares including Interstates PROPERTY DESCRIPTION 285 and 20, which offer a convenient route to Atlanta’s CBD, Hartsfield Jackson International Airport, Buckhead, Address: 2500 Center St NW Cumberland/Galleria, and Central Perimeter. City, State: Atlanta, GA Year Built / Renovated: 1974 / 2002 RENTAL MARKET ON THE RISE Phase I - 164 Since 1Q2013, effective rents in the submarket have • 7

| HIGHLIGHTS INVESTMENT Units: Phase II - 190 Total - 354 increased a tremendous 28%. Income Restrictions: 100% HAP/LIHTC • Effective rents are projected to increase an additional 14.1% ROLLING BENDS Phase I - December 31, 2017 over the next five years. End of Year 15: Phase II - December 31, 2018 Hollywood Rd NW Phase I - December 31, 2032 End of Extended Use: Hightower Rd NW Phase II - December 31, 2033

UNIT MIX

Unit Type # of Units SF Current Contract Rents Current FMR 140% of Median Gross Rent (HUD) 1 Bed, 1 Bath, Phase I, HAP 10 516 $711 $858 $1,380 1 Bed, 1 Bath, Phase II, HAP 22 616 $710 $858 $1,380 2 Bed, 1 Bath, Phase I, HAP 138 820 $816 $990 $1,380 James Jackson Pkwy 2 Bed, 1 Bath, Phase II, HAP 158 820 $815 $990 $1,380 3 Bed, 2 Bath, Phase I, HAP 16 1032 $1,001 $1,299 $1,380 3 Bed, 2 Bath, Phase II, HAP 10 1032 $1,000 $1,299 $1,380 Totals / Avg. 354 814 $820 $1,001 $1,380 INVESTMENT HIGHLIGHTS

ALLEN HILLS & ROLLING BENDS 12

01 ALLEN HILLS 08 ROLLING BENDS 15 Bankhead Marta Station BUCKHEAD 13 Adamsville Recreation Center Proctor Creek Greenway 14 02 09 16 Proctor Park • $13.1M, 103,000 square foot Public Recreation Center • $50 million greenway project • New 9.2 Acre Community Park on Atlanta Beltline • Amenities include a multi-use athletic field, • Seven-mile system of bicycle and pedestrian trails playground, an 8-lane competition swimming pool, and 400-acres of public green space 17 Atlanta BeltLine and classroom space • Will offer connectivity to the Bankhead MARTA • $20B in total projected economic development Station and the BeltLine Westside Trail • Will create over 30,000 permanent local jobs Martin Luther King Jr. Drive Corridor 03 • The first segment of the trail is scheduled to be • 22-mile loop of pedestrian friendly rail transit Improvement Initiative completed in early 2018 05 • $60.2M Initiative to improve the 7.2 mile long East- • 33 miles of multi-use trails

West corridor Westside Reservoir Park • 2,000-Acres of parks INVESTMENT HIGHLIGHTS | 10 09 8 • Improvements will include multi-modal transportation • $38 million, 300-acre Park options, green streetscapes, lighting and • Park amenities include skate park, street hockey 18 Westside Provisions District • Premier shopping and dining destination 08 landscaping improvements, and linear park space. court, waterpark, outdoor amphitheater, and 17 arboretum trail • Over 13 restaurants and 25 shops Majestic Logistics Center 04 • Once completed, it will be the largest park in the City MIDTOWN • 341-Acre, $400M UPS Distribution Center of Atlanta 19 Westside Trail-Atlanta BeltLine 04 • The 1.2M SF facility is expected to be completed by • 3-Mile, $43M Bicycle and Pedestrian-Safe Transportation Corridor with 14 Access Points 18 the end of 2018 11 Bellwood Quarry • Will create over 1,200 permanent local jobs • City of Atlanta’s $300 million project to convert the • Expected to Open in Summer 2017 10 138-acre quarry into a 2.4 billion gallon reservoir 11 21

06 9 | HIGHLIGHTS INVESTMENT Riverview Landing • Will be the centerpiece of the Westside Reservoir 20 Downtown Atlanta 05 • 1.9M SF of Retail Space • 82-Acre, $300M Mixed-Use Development Park • 200,000 Daytime Population 15 • Over 600 residential units planned, including 65 • Expected to be completed in early 2018 Single Family Homes, 233 Townhomes, and a 310- • 28M SF of Office Space unit multi-family apartment complex Moores Mill Shopping Center 12 • 70,000 square foot, $95 million mixed-use • 12-acre park along the Chattahoochee River 21 Midtown Atlanta 16 development • 22.5M SF of Office Space • Anchored by a 45,600 square foot Publix and CVS • 1.9M SF of Retail Space • Will create 300 permanent local jobs 06 Fulton County Airport • 81,000 Daytime Population • 985-acre Airport with three runways 20 • Over 1,100 Employees Westside Village at Moores Mill 13 • $25 million, 100,000 square foot mixed-use • $158M Annual Economic Impact development • Will offer retail and loft office space as early as 02 01 DOWNTOWN 07 HE Holmes Marta Station Summer 2017 07 03 ATLANTA 14 Westside Station 19 • 28-acre master-planned community • 160+ new residences • Homes start around $400,000 INVESTMENT HIGHLIGHTS

285 285 23 41 85 TRANSACTION GUIDELINES 19 ALLEN HILLS & ROLLING BENDS Each asset is being offered all-cash, subject to any existing rent, income, and ownership transfer restrictions required Atlanta New York by the LURAs. While the Offering is being marketed individually or as a portfolio, any bid for more than one Property Austin Orange County 285 must value each Property individually to be considered. Boston Orlando 41 23 141 HFF has been engaged by the Owner of the Properties to market them for sale. Information concerning the Properties Carolinas Philadelphia described herein has been obtained from sources other than HFF, and neither Owner nor HFF, nor their respective Chicago Phoenix

407 equity holders, officers, employees and agents makes any representations or warranties, express or implied, as to the 85 285 Dallas Pittsburgh 19 13 accuracy or completeness of such information. Any and all reference to age, square footage, income, expenses and Denver Portland any other property specific information are approximate. Any opinions, assumptions, or estimates contained herein 29 Houston San Diego 75 78 are projections only and used for illustrative purposes and may be based on assumptions or due diligence criteria 6 78 78 different from that used by a purchaser, and HFF, its partners, officers, employees and agents disclaim any liability Indianapolis San Francisco 41 278 that may be based upon or related to the information contained herein. Prospective purchasers should conduct their Los Angeles Tampa 19 own independent investigation and rely on those results. The information contained herein is subject to change. INVESTMENT HIGHLIGHTS | 278 13 Miami Washington

10 ROLLING BENDS 23 29 278 New Jersey London 280

70 285 6 ATLANTA 23 29 20 20 278 278 285 280 Please Direct All Inquiries To: HFF, L.P. Doug Childers Michael Fox Derek Rich 3424 Peachtree Road NE

20 Suite 1750 11

| HIGHLIGHTS INVESTMENT Managing Director Associate Analyst 20 404.942.3187 404.942.2216 404.942.2215 Atlanta, Georgia 30326 280 tel (404) 832-8460 6 407 278 [email protected] [email protected] [email protected] 70 85 fax (404) 942-2181 ALLEN HILLS 42 www.hfflp.com 29 19 20 23 278 6 20 166

166 285 155 70 75 Copyright 2017 Holliday Fenoglio Fowler, L.P., HFF Real Estate Limited (collectively, “HFF”), HFF Securities L.P. and HFF Securities Limited (collectively, “HFFS”) are owned by HFF, Inc. (NYSE: HF). HFF and its 29 85 affiliates operate out of 24 offices and are a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a 6 19 23 fully integrated capital markets platform including debt placement, investment sales, equity placement, funds marketing, M&A and corporate advisory, loan sales and loan servicing. For more information please visit hfflp.com or follow HFF on Twitter at twitter.com/hff. 139 29 285 Hartsfield - Jackson Atlanta International Airport

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