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Retreat at Stone Mountain

Disclaimer

The information contained in this overview and initial plan is considered confidential and is solely for the use of prospective investors to determine the level of interest in the Retreat at Stone Mountain apartment complex located in Atlanta, GA. While the information contained in this overview, plan and model has been compiled from various sources, and we believe it to be reliable based on the data used but neither Ben Suttles, Feras Moussa, or Mark Kenney or its representatives make any representation or warranties as to the accuracy or completeness herein. All financial information and projections are provided for reference only and are based on assumptions relating to the general economy, market conditions, and other factors beyond our control. All prospective investors are encouraged to conduct their own independent due diligence investigation, review, financial projections, and consult with their legal, tax, and other professional advisors before making an investment decision.

Meeting Agenda

• Executive Summary
• Market Overview
• Property Characteristics
• Business Plan
• Next Steps
• Q&A

Sponsor T eam

Ben Suttles Managing Member Feras Moussa Managing Member Mark Kenney Managing Member

Ben is an entrepreneur having owned half a dozen companies with revenues at $10MM per year . He has helped syndicate 5 multifamily projects, totaling close to 800 doors and a $40MM portfolio value. He recently sold his first syndication for over a 300% return in less than two and half years, and has raised over $10MM in his career for various real estate projects. Feras is a serial entrepreneur with a tech

• background. Feras formerly worked as a

Program Manager at Microsoft, and is now focused on Multi-Family investing. Feras owns and manages a rental portfolio of 4-plexs, single-family homes, and multiple condos, and has closed over 500 units and $25MM in Multifamily acquisitions. Mark has a passion for real estate and has been investing in real estate for over 20 years and currently owns over 4000 units. Mark purchased his first real estate property when he was 23 years old. He has also raised millions of dollars to purchase properties.

Sponsor T eam

Josh Benporat Co-Sponsor David Gerber Co-Sponsor Juan Vargas Co-Sponsor

Josh grew up in Dallas, however after making the move to Houston in 2012 he proudly calls this city his

• home. Josh has over a decade of experience in sales

and is a licensed attorney in the state of T

• exas. After

discovering his passion for commercial real estate two years ago he shifted his focus to multifamily investing and the rest is history.

With more than 25 years experience in financial services,

David was constantly surprised how many clients and colleagues limited their portfolios to stocks, bonds, and

• cash. T
• o many failed to diversify sufficiently into direct

real estate. For good reason! Even passive investments require a lot of upfront due diligence, even if you can access deals. David founded Cove Investments to help individual investors access direct, passive real estate

• pportunities, with taxable funds or in their retirement

accounts! Juan has been actively engaged in all aspects of real estate sales, investment, management, financing and construction for more than ten years. He is a licensed commercial agent and has experience with residential as well as multi- residential, including owning 4 single family homes and owning and operating a 32 unit multifamily property in the Houston MSA. He is a KP in 90 multifamily units in Atlanta and has also invested passively in 321 multifamily units. Juan was raised with strong family values and is known for his unique ability to uncover apartment investment deals with value add potential.

16%+

Average Annualized Returns

~100%

6 Year Return

$950k

Capex Improvements

Executive Summary

Location Management High-Demand

North ATL location which allows residents to enjoy easy access to I-285 (204,000 vehicles per day), which facilitates quick commutes to major metro employers. Out of State institutional

• wners who had “hands off”

management style. Provence managed deal across the street for years Current rents are low $0.70s/ft. Underwritten at $0.82/ft. While Market average is high $0.80s/ft and into the 90’s.

Why Atlanta and Retreat at Stone Mountain

• Built in 1983, Retreat at Stone Mountain apartments feature quality construction elements

including pitched roofs, covered exterior breezeways, washer/dryer connections, and low- maintenance brick and vinyl exteriors.

• Nearby competitors of similar age receive average rents that are $175 to $300 higher than

Retreat at Stone Mountain’s average market rent.

• Atlanta is expected to add 43,200 jobs in the next twelve months. MPF’s forecast calls for

increases in organic rent growth of +3.3% over the next year

• Home to nearly 5.9 million residents, Metro Atlanta is the largest metro in Georgia and the

ninth-largest metro area in the United States.

• Greater Atlanta’s population is forecast to grow 9.6% over the next five year’s surpassing

6.4 million residents

Market Overview

The Atlanta Metropolitan Statistical Area’s total population now exceeds 5.9 million people and has grown 79% since 1990, making it the nation’s ninth-largest MSA and

• ne of its fastest growing.
• Atlanta is expected to add 43

43,200 200 jobs jobs in the next twelve months.

• T
• p 5 projected job growth metro through

2020.

• The massive 29-county region is also

home to 15 Fortune 500 companies, 66 institutions of higher learning, and the busiest airport in the world in terms of annual passengers.

Apartment Market Overview

SUBMA BMARKET RKET OVERVI RVIEW EW

• Retreat is located within one of the top

performing submarkets in the Atlanta MSA.

• The Stone Mountain submarket saw a 5.5%

annual rent growth in Q2 2018. This rent growth is a result of no new supply in the area and the submarket’s proximity to Atlanta.

• Supply-demand imbalance fuels submarket

fundamentals, bolstering property performance trends and indicating strong future organic growth

Year 1 projections are $916/unit

Nearby Entertainment

Stone e Mounta ntain in Park rk - Its centerpiece is the world’s largest exposed piece of granite and is the number one tourist attraction in Georgia. Visitors can travel to the summit and explore the park’s 3,200 acres of lakes and woodlands which features, boat rides, adventure and climbing areas, plantation, Civil War museum, laser show, and carillon. Northla lake ke Mall l - 1.0 million SF is anchored by Macy’s, Sears, and JCPenney, and also has more than 100 other retailers. The Fernbank Museum of Natural History- 8 million dollar exhibit which includes dinosaur skeletons and an IMAX theater. East st Lake ke Golf lf Club b - a private golf club that is the

• ldest golf courses in the city of Atlanta.

North Dekalb lb Mall l - is a 635,000 SF center of shopping, dining, and entertainment destinations. Wade-Walker- is DeKalb’s largest park and recreational facility. The park features baseball, softball, soccer, tennis, as well as street hockey. The park also provides a swimming pool, playgrounds, picnic areas, pavilions, a lake, and walking trails.

Nearby Entertainment

Ston

• ne

e Moun untain ain Park rk Northlake lake Mall East t Lake ke Golf f Club

Retreat at Stone Mountain

Nearby Employers

Marta Rail

DECATUR MIDTOWN

Emory University and CDC HQ GSU Perimeter College Memorial Bend H a m b r i c k R o a d

Retreat at Stone Mountain

Property Summary

1983 212 238,140 1,123 19.7 95%

400 Ashley Place, Stone Mountain, GA 30083

Address Y ear Built Units T

• tal SF

Avg Unit Size Land Size (acres): Physical Occupancy

• Negotiated off market. Purchased at less than $67k/door.
• Property is well kept, but not well managed. There is both a

management and value-add play.

• 1983-built asset features desirable construction features

including brick and pitched roofs.

• The asset features 100% two-and three-bedroom spacious

roommate-style floorplans (averaging 1,123 SF).

• Market-supported organic rent increase based on rent comp set.
• Had 6 fire units recently, these were rehabbed nicely and were

quickly leased up for a $100 premium

• Property next door is a 100% replica of property, same builder.

Next door property has rents in the $0.90s/ft.

• 100%+ total return in 6 years, on conservative underwriting,

with 8 pref and 75/25 split.

Highlights

Floor Plans

TWO BEDROOM / / ONE BATH GARDEN

1,029 Square Feet

TWO BEDROOM / / TWO BATH GARDEN

1,058 Square Feet

TWO BEDROOM / / TWO BATH GARDEN

1,096 Square Feet

Floor Plans

THREE BEDROOM / TWO BATH GARDEN

1,278 Square Feet

THREE BEDROOM / TWO BATH GARDEN

1,310 Square Feet

Property Characteristics- Interiors

Upgraded unit

Property Characteristics - Interiors

Classic Unit

Property Characteristics- Exteriors

Property Characteristics - Exteriors

Property Amenities

• Swimming Pool
• Gated Access
• Office
• Two Playgrounds
• Picnic Areas
• Sport Court
• Washer/Dryer Connections in all units

Property Amenities

The Opportunity

Loan Type

Traditional Agency Debt (Fannie Mae) Hunt Mortgage – sponsors have other properties with the same lender 30 year amortization

# Units

212

Purchase Price

$14,200,000

Price/Unit

$66,981

Earnest Money

$200,000

1st Mortgage

$9,800,000

Mortgage T erms

10 year

Interest Rate

~4.40%

Interest Only

4 Years

Rehab Budget

~$950,000

Acquisition Fee

2%

Reserves/Additional Rehab

$100,000

T

• tal Needed to Close

$6,025,000

9-10%+ cash flow throughout the hold 100%+ total return in 6 years

Investment Projections

~16%+ average annualized return

Rent Comps

$917 $990 $1,055 $1,000 $1,065 $795 $0 $200 $400 $600 $800 $1,000 $1,200 The Haverly at Stone Mountain (1308 sf) Polo Club (1,094 sf) Wildwood at Stone Mountain (1,060 sf) The Life at Clifton Glen (1,200 sf) The Pointe (1,055 sf) Sterling Chase (1,096 sf)

Two Bedroom

• ms

$1,163 $1,070 $1,100 $1,275 $870 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 Polo Club (1,300 sf) Wildwood at Stone Mountain (1,274 sf) The Life at Clifton Glen (1,500 sf) The Pointe (1,255 sf) Sterling Chase (1,310 sf)

Three e Bedrooms

• oms

~$280 delta on average ~$210 delta on average

Sales Comparables

Property Name Sale Date Units Year Built Price Price per Unit Address City

Subj. Retreat at Stone Mountain

• 212

1983 $14,200,000 $66,981 400 Ashley Place Stone Mountain, GA 1 Stanford Oaks Aug-18 202 1968 $19,000,000 $94,257 2035 Idlewood Road Tucker, GA 2 Rainbow Forest Aug-18 156 1972 $11,500,000 $73,718 3100 Rainbow Forest Circle Decatur, GA 3 Clifton Glen Jul-18 556 1972 $40,866,000 $73,500 500 Hambrick Road Stone Mountain, GA 4 Summit Grove Jun-18 64 1966 $4,800,000 $75,391 2340 Lawrenceville Highway Decatur, GA 5 Villas of Embry Hills Jun-18 124 1964 $12,000,000 $67,643 3317 Chamblee Tucker Road Atlanta, GA 6 Heritage Reserve Feb-18 210 1989 $14,200,000 $67,643 10 Creste Drive Decatur, GA 7 Azalea Ridge Jan-18 281 1969 $19,100,000 $68,000 3214 Valley Bluff Drive Doraville, GA 8 Cambridge Heights Dec-17 132 1989 $8,950,000 $67,803 6136 Hillandale Drive Lithonia, GA 9 Sonoma Ridge Nov-17 440 1986 $39,300,000 $89,318 4659 Dawson Boulevard Atlanta, GA 10 The Arbors Sep-17 140 1987 $12,300,000 $87,500 100 Arbor Circle Tucker, GA 11 Grove Mountain Park Apr-17 268 1989 $21,600,000 $80,637 1900 Glenn Club Drive Stone Mountain, GA 12 Lavista Crossing Jan-17 240 1969 $22,700,000 $94,688 3797 Lavista Road Tucker, GA Total/Average 2,813 $226,316,000 $80,454

Manage gement ment

Professional Property Management – currently manage 8,000+ units in SE, with the majority in the ATL MSA; managed The Life at Clifton Glen, across the street, for several years until July 2018

Cape pex x

$950,000 in improvements to interiors and exteriors, and addition of various amenities, including paint, roofs, update office, and upgrade 100-150 units.

Prope perty y Imp mprove veme ments nts

Improve signage of the property to give a modern feel, add new amenities such as a dog park and functional office/clubhouse, new pool furniture and establish clean, quality housing.

Business Plan

Incr crea ease se NOI OI, Re Redu duce ce Expe penses nses

Update strategic units, move rents to market and reduce expenses

Professional Management-

• Current owners are out of state & institutional and take a very “hands off”

style of ownership and management

• Provence Real Estate will manage the property for us upon takeover
• Provence currently manages 8000+ units total, & manage 900+ units for us

in Atlanta

• T
• ured the property, conducted lease audits, reviewed budgets and

projections

Estimated Rehab Budget

Rehab

Roofs $150,000 Exterior Improvements $150,000 Dog Park/Pergola/BBQ Pits $25,000 Gate Repairs $15,000 Landscaping/Signage/Fencing $90,000 Interior upgrades $415,000

T

• t
• tal

al: : ~$950 50,0 ,000 00

Rehab

Office/Clubhouse/Pool $25,000 Solar Screens $40,000 Other $40,000

Increase NOI

• Bring rents to market – High renter demand & limited supply
• Professional Property Management with years of experience in this pocket
• Update units to better standard in order to push rents to a premium
• Add amenities to attract premium rents and improve property look & feel
• Tighter management control of the asset helping streamline expenses

Proforma T able

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Gross Rents

$2,342,280 $2,412,548 $2,484,925 $2,534,623 $2,585,316 $2,637,022

Economic Vacancy

$421,610 $265,380 $273,341 $278,808 $284,385 $290,072

Other Income

$231,000 $237,930 $245,068 $249,969 $254,969 $260,068

Net Income

$2,151,670 $2,385,098 $2,456,651 $2,505,784 $2,555,900 $2,607,018

Operating Expenses

$1,088,000 $1,120,640 $1,154,259 $1,177,344 $1,200,891 $1,224,909

Capex Reserves

$53,000 $53,000 $53,000 $53,000 $53,000 $53,000

Net Operating Income

$1,010,670 $1,211,458 $1,249,392 $1,275,440 $1,302,008 $1,329,109

Assumptions Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

Rent Growth

3% 3% 2% 2% 2%

Expenses Growth

3% 3% 2% 2% 2%

Economic Vacancy

18% 11% 11% 11% 11% 11%

Projected Investor Return

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

Before Tax Cash Flow

$531,628 $678,401 $704,818 $722,957 $589,833 $608,706

Cash on Cash Return

8.77% 11.21% 11.67% 11.98% 9.80% 10.13%

T

• tal Return

32.53% 50.74% 67.21% 84.15% 101.61%

Average Annualized Return

8.77% 16.27% 16.91% 16.80% 16.83% 16.93%

Average Annualized Return

9.98% 10.53% 16.59% 16.60% 16.70% Sample Investment ($100,000)

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

Cash-on-Cash Return

$8,772 $11,213 $11,669 $11,983 $9,800 $10,126

Cumulative Cash-on-Cash

$8,772 $19,985 $31,654 $43,637 $53,437 $63,563

Equity Gain on Sale

• $38,046

Return of Capital

• $100,000

T

• tal Return

$8,772 $19,985 $31,654 $43,637 $53,437 $201,609

All numbers below are net returns to investors – Net of Debt Service, 1.5% Asset Management Fee and 20% Sponsor Compensation

7% Exit Cap. ~15% total IRR

Post Acquisition Expectations

Monthly ly Reports

Investors will receive a monthly report with highlights and financials

Quarterly terly Dist strib ibut utio ions ns

Investors should expect distributions quarterly, starting at 6 months after acquisition

Comm mmun unic icatio ion

Sponsorship team will keep communication channels open and communicate the good and bad

Next Steps

1. Review and complete Investment Packet, to be sent out February 4th 2. Sponsors review and accept investment packet 3. Wire investment to banking instructions prior to February 20th The investment packet contains the Offering documents (PPM, Subscription Agreement, etc.). Open to bot

• th

h soph phist istic icated ated and d accredited edited investor estors Investments will be accepted on a first t come me first serve ve basis is on the completion and delivery of the offering documents, as well as wiring of funds.

Minimum mum Invest stment ent - $75,000 Will accept cept IRA Funds ds

Q&A

Have questions? Feel free to ask.