5743 TELLER STREET, ARVADA, CO 80002 PREPARED BY: 153 luxurious apartment homes in the heart of vibrant Olde Town Arvada • TRULY WALKABLE URBAN LIVING • LIGHT RAIL ADJACENT • AMENITY RICH 1 | STARK ENTERPRISES • PARK PLACE Unique mid-rise with diverse unit mix and unrivaled amenities DISCLAIMER & USE LIMITATION The information contained in the following Confidential Marketing Memorandum (CMM) is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Stark Capital Group, LLC (SCG) and should not be reproduced and disclosed to any other person or entity without the written consent of SCG. The CMM has been prepared to provide summary, unverified information to prospective lenders and investors. The information contained in this CMM has been obtained from sources SCG believes to be reliable; however, SCG has not verified, and will not verify, any of the information contained herein, nor has SCG conducted any investigation regarding these matters. SCG makes no warranty or representation whatsoever regarding the accuracy or completeness of the information including, but not limited to, the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the compliance with State and Federal regulations, the physical condition or occupancy of the subject property. All potential lenders and investors should take appropriate measures to verify the information set forth herein and the CMM should not be considered a substitute for a thorough due diligence investigation. All logos, photography, and other visual imagery related to any of Robert L. Stark Enterprises, Inc. and its affiliates (RLSE) contained in this CMM are the property of RLSE and are used for the sole purpose of marketing the opportunity to potential lenders and investors. This CMM is to be used by prospective investors and lenders for informational purposes only. This CMM does not constitute an offer to sell, nor is it a solicitation of an offer to purchase any securities. 2 | STARK ENTERPRISES • PARK PLACE ABOUT STARK ENTERPRISES “We make communities the best they can be” STARK ENTERPRISES, headquartered in Cleveland, Ohio, is a full service real estate operating company with the highest level of expertise in acquisition, development, leasing, property management, construction, architectural design, landscape architecture and marketing. Balancing new urbanist principles and sustainability practices with economic viability, Stark Enterprises delivers remarkably progressive, next generation mixed-use properties. For nearly 40 years, Stark Enterprises has been developing and managing generational assets that leave visitors with lasting impressions. Stark’s portfolio consists of retail, entertainment, office, residential, hotel and student housing environments, totaling approximately seven million square feet. With its $2 billion portfolio and over $1 billion under development, Stark properties are always managed with the company’s long-term investment strategy in mind and are continually recognized by customers and industry leaders as among the most beautiful, well operated and maintained properties in the nation. 3 | STARK ENTERPRISES • PARK PLACE WHAT WE DO AS EXPERTS IN THEIR RESPECTIVE FIELDS, our team members play diverse roles in providing targeted support to meet project needs and exceed goals. Our partners reap the benefits of our vertically integrated structure, which maximizes speed and efficiency for even the most complex of projects. OPERATIONS ASSET FINANCE CAPITAL LEGAL MANAGEMENT MARKETS MARKETING LEASING DEVELOPMENT CONSTRUCTION 4 | STARK ENTERPRISES • PARK PLACE OUR HISTORY fostering exploration, 1997 1992 Terraces on discovery and creation Eagle Crest, the Green 1978 1982 1987 Rosemont Commons & Terraces at Stark Enterprises Comet Management West Market Plaza & Promenade of Northridge founded founded developed Westlake developed constructed 1995 The Strip developed Covington Valley Estates developed 1993 1996 Shops of Fairlawn Exterior developed Services founded 1980 Arbor ARBOR CONSTRUCTION EXTERIOR SERVICES Construction is a full-service general contractor and provides award-winning landscape design founded construction manager with a portfolio and first-class maintenance services for its including civil/state construction, retail, tenants. A full staff of maintenance and multifamily, mixed-use, office, theatre, operations personnel ensure that the grounds hospitality spaces and more. are kept clean and visitors’ experiences are exceeded beyond expectations. 5 | STARK ENTERPRISES • PARK PLACE OUR HISTORY 2015 STARK CAPITAL GROUP Stark Capital provides comprehensive real estate capital Group founded markets solutions with an emphasis on equity and debt placements, principal acquisitions 2001 2004 2007 and asset management. Whitehall Crocker Park The Lakes at West Terrace Phase I Chester Village acquired constructed acquired 2017 Construction commences on Crocker Park The Beacon, Portage North Phase III & NorthPark Plaza. Stark acquires constructed Overbrook & Reserve Park future… Eton Chagrin Boulevard Currently in acquired and redeveloped 2008 2011 2016 Crocker Park Stark Marketing Construction of development: Phase II Group founded Liv+ Arlington began • Solstice, constructed Los Angeles, CA • nuCLEus, STARK MARKETING GROUP Cleveland, OH provides specialized The Vue & • The Icon marketing, public relations on Smithfield, and graphic design Big Sky Park services to support and Apartments Pittsburgh, PA promote all properties acquired and residences. 6 | STARK ENTERPRISES • PARK PLACE CURRENT PROPERTIES 17 1213 20 22 4 24 21 109 33 23 1112 6 7 8 9 1415 18 25 1615 22 26 19 5 27 29 28 1 MENCHIE'S FROZEN YOGURT LOCATIONS ENSO ROLLS & BOWLS 1. Lakes at West Chester Village 7. Rosemont Commons 15. Water’s Edge 23. NorthPark Plaza WEST CHESTER, OH FAIRLAWN, OH CUYAHOGA FALLS, OH BRUNSWICK, OH 2. The Perch on Lake 8. Shops of Fairlawn 16. Terraces on the Green 24. Reserve Office Park SHEFFIELD LAKE, OH FAIRLAWN, OH AKRON, OH WESTLAKE, OH 3. Brooklor Plaza 9. West Market Plaza 17. Richmond Hills Apartments 25. Covington Valley Estates NORTH OLMSTED, OH FAIRLAWN, OH EUCLID, OH ERIE, PA 4. Crocker Park 10. Terraces at Northridge 18. Liv+ Kent 26. The Smithfield In Development WESTLAKE, OH CLEVELAND, OH KENT, OH PITTSBURGH, PA • The Residences 11. Canal Zone 19. The Strip 27. Overbrook Apartment Homes • Excelsior VALLEY VIEW, OH NORTH CANTON, OH LOUISVILLE, KY • Ovation 12. nuCLEus 20. The Vue 28. Liv+ Arlington • The Promenade DOWNTOWN CLEVELAND, OH BEACHWOOD, OH ARLINGTON, TX 5. The Shoppes at Stonecreek 13. The Beacon 21. Eton Chagrin Boulevard 29. Retail & Residential In Development PICKERINGTON, OH DOWNTOWN CLEVELAND, OH WOODMERE, OH LOS ANGELES, CA 6. Office Max Plaza 14. Portage Crossing 22. Big Sky Park Apartments FAIRLAWN, OH CUYAHOGA FALLS, OH WADSWORTH, OH 7 | STARK ENTERPRISES • PARK PLACE 01 EXECUTIVE SUMMARY 02 INVESTMENT SUMMARY 03 PROPERTY OVERVIEW MARKET / SUBMARKET 04 OVERVIEW 05 COMPARABLES 06 AREA OVERVIEW 07 DEMOGRAPHICS 8 | STARK ENTERPRISES • PARK PLACE 08 FINANCIALS 01 EXECUTIVE SUMMARY 9 | STARK ENTERPRISES • PARK PLACE EXECUTIVE SUMMARY STARK CAPITAL GROUP is pleased to present the exclusive offering of Park Place Olde Town, the only Class A apartment community located within Historic Olde Town Arvada. As Olde Town Arvada prepares for the opening of the G line commuter rail, Park Place Olde Town serves as the anchor to the trendiest new suburbia and place to raise a family in the Denver metro. Park Place Olde Town is a one-of-a-kind, newly constructed community that contains 153 luxurious apartment units with best in class amenities and finishes. Each unit is methodically designed to offer a smart living experience with breathtaking features and the stylish finishes that would be expected in a new apartment community. Every floor plan comes with spacious walk-in closets, stainless steel kitchen appliances, and plank laminate flooring. The building is designed with large private patios and balconies to capture the quintessential Denver experience and take advantage of the stunning mountain, park, and city views. Residents enjoy many perks and lavish amenities. There are three uniquely themed ‘social’ courtyards, a state of the art fitness center, 24-hour bike and ski maintenance facility, 24-hour dog washing and grooming station, structured parking, and many other amenities. Park Place Olde Town is just steps from the vibrant Historic Olde Town Arvada, which is soon to include the Olde Town Arvada Park-n-Ride Light Rail Station on the newly constructed G line commuter rail. Due to the proximity to this, Park Place Olde Town is in a perfect position to capture the rent growth that comes along with transit oriented communities. In addition, several ancillary income items are still stabilizing due to Park Place Olde Town being in lease-up for the majority of 2016. These two factors provide a clear path to upside and will generate strong cash flows going forward. There are TWO POTENTIAL SCENARIOS that would provide a combination of strong cash flow, upside potential, and value appreciation. 1) The first option would be to finance the property with a Freddie Mac first mortgage and then refinance to HUD upon the expiration of the interest only period, returning a large portion of the equity, and then pursuing a sale under favorable market conditions. Over a 7 year period this scenario would