ACQUISITION CRITERIA

The following criteria is used to identify undervalued multifamily properties for acquisition, value optimization, management and disposition.

MARKET SEGMENTS

• People ranging between 18 to 34 years old make up 22% of the U.S. population

• Income: people who earn $35,000 and less annually

• The retiring Baby Boomers are settling down and are enjoying the comfort of multifamily community living.

PROPERTY CRITERIA

• Multi-family residential apartments

• Minimum Occupancy 80% with the exception of properties that require renovation

• Properties are well located and allow for great value opportunities

TARGET VALUES

• Size and Price: 100+ units in the $5MM – $15MM range

• Returns: 15-20% Cash on Cash, minimum Debt Service Coverage ratio of 1.5

• Type: C- to B+ properties located in C- to A areas

• Location: Emerging market areas with indicators for strong near and long-term economic growth