Offering Memorandum Prepared by: Douglas Coke

4/25/2016

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EXECUTIVE SUMMARY Post Lakeside Apartments | Windermere, FL

The goal of this report is to provide the reader with all information necessary

about the investment property Post Lakeside Apartments, in order to make a

quality and informed decision. The property is located in Windermere, FL

minutes from the Orlando Airport and The Mall at Millennia overlooking the

beautiful Lake Spar. The building is Class A 300 unit, and is 338,074 Square FT

built in 2013.

Orange County is currently experiencing the largest population growth in the

state of Florida. They are even outpacing Miami-Dade country. The demographics

moving in are young people 18 - 31 likely to choose renting over purchasing a

home. Post lakeside Apartments is perfectly positioned to take full advantage of

this population increase. Since inception the apartment building has seen max

capacity and a boastful churn rate.

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The property will generate 4.27M annually after expenses with a 5% vacancy

loss. With an initial investment of 6.7M, your expected payback period will be

just under 2 years.

Price per unit ranges from $1250 – $2000 with an average price of $1620,

totaling in $486,250 monthly and $5,835,000 annually. Competition in the area

is small as Post Lakeside is the premier luxury building on location.

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SOURCES & USES Post Lakeside Apartments | Windermere, FL

Sources of Funds

Sponsor Contribution: 4.4M (65%)

Partner Contribution: 2.4M (35%)

Total Equity – 6.8M

Uses of Funds:

EGI % - 3%( 148k)

Management fees – 120k

Real Estate Taxes – 55k

Property/Insurance – 22k

Payroll/Staff – 125k

Maintenance/Accounting/Legal – 35k

Total Expenses – 505k

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PROPERTY DESCRIPTION Post Lakeside Apartments | Windermere, FL

The Post Lakeside Property is a luxurious beach/resort style oasis, which

overlooks the beautiful Lake Spar. Amenities include outdoor kitchens, swimming

pools with cabanas, state of the art fitness center, large demonstration kitchen,

and fully landscaped courtyards. The property features bright and open spaces

with modern finishes and tall glass windows. Land area Sq. Ft. 1,244,152.

The property rooms are 1, 2 and 3 bedrooms. 25 1/1s, 100 2/1s, 100 2/2s, 75

3/2s. Vinyl plank flooring, Island kitchens, upgraded appliances with built in

microwaves, faux granite countertops, designer wood cabinetry, full size washer

and dryers, ceiling fans, screened in balconies, and lake views from some units.

Community amenities include billiards and game room, cyber café,

demonstration kitchen with monthly classes taught by local chefs, car care center,

controlled access gates, optional attached and detached garages, and rentable

storage units.

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FINANCIAL SUMMARY Post Lakeside Apartments | Windermere, FL

Average Unit Rent - $1620 | Annual Rent – 5.8M

NOI – 4.2M | Annual Debt Service – 3.7M | Cash on Cash Return | 4.13%

Total Acquisition Cost – 50.4M | 90% LTV | Total equity required 6.743M

Growth EGI rate – 25% | Growth in expenses 3%

Cash on Cash Returns | Yr0 to Yr1 4.13% | Yr1 to Yr2 21.6% | Yr2 to Yr3 43.47% | Yr3 to Yr4 70.87% | Yr4 to Yr5 105% | IRR 53.95%

Total cash flow after an initial investment of 6.743M | Yr1 $278,734 | Yr2 $1,456,231 | Yr3 $2,931,403 | Yr4 $4,778,767 | Yr5 W/Disposition cash flow $37,123,032

Investment Structure

Sponsor Partner

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Breakdown

Sponsor cash flows after an initial investment of 4.4M |Yr1 $181,176 | Yr2 $1,028,652 | Yr3 $2,142,407 | Yr4 $3,537,167 | Yr5 $27,828,334

Partner Cash flows after an initial investment of 2.36M |Yr1 $97,556 |Yr2 $427,578 |Yr3 $788,995 |Yr4 $1,241,599 |Yr5 $9,739,916

Sponsor Return | 6.82 | Partner Return | 4.21

Sponsor IRR | 58.30% | Partner IRR | 44.56%

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Year 1

Year 2

Year 3

Year 4

Year 5

Total Investment Cashflows

*Millions