FAIRWAYS AT HUNTER’S RUN

MULTIFAMILY OPPORTUNIT Y

WATFORD CITY, NORTH DAKOTA

The information contained herein is f rom sources deemed reliable. We have no reason to doubt its accuracy but do not guarantee it. It is the responsibility of the person reviewing this information to independently verif y it. This package is subjec t to change, prior sale or complete withdrawal. NDMcKenzie181246 - 6.14.16

90% LEASED TODAY

Joseph R. Kachouroi | Broker701.770.5893 | jkachuroi@gmail.com

INVESTMENT SUMMARY

Property Overview 3

Financial Summary & Unit Mix 4

Pro Forma 5

Local Area Description 6

County Map 7

Parcel Map 8

Property Detail Map 9

Surrounding Area Map 10

Property Photographs 11

Floor Plans 12

FAIRWAYS APARTMENTSTABLE OF CONTENTS

FAIRWAYS APARTMENTS PROPERTY OVERVIEW

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Property Address: 509 Hunter’s Run #9B, North Dakota 58854

Zoning: High Density Multi Family

Purchase Price: $8,100,000 - 50% of building cost

Price Per Unit: Asking $75,000 per door Land Area: 435,600 sq. ft. / 10 acres

Unit Mix: 108 Units 2 floor buildings - 6 buildings total 36 units - 6 units per building 3 floor buildings - 2 buildings total 72 units - 36 units per building (36) 1 Bedroom, 1 Bath (42) 2 Bedroom, 2 Bath (30) 3 Bedroom, 3 Bath 383 sq. ft. per studio bedroom/one bathroom unit 542-728 sq. ft. per one bedroom/one bathroom unit 814-973 sq. ft. per two bedroom/two bathroom unit 1054-1286 sq. ft. per three bedroom/two or three bathroom unit 205,223 total rentable sq. ft.

Parking : 54 Detached Garages

Real Estate Taxes: $17,359 (2015)

Features: Balconies/Deck/Patio Refrigerator In-unit Washer/Dryer, Microwave, Dishwasher Oversized Closets Air Conditioning, Wall Mounted All Bills Paid Smoke Free Garbage Disposal

Garage Fullsize Sales & Management officePet ParkCeiling FansCable ReadyEmergency MaintenanceDish Satelite with over 500 Channels

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FAIRWAYS APARTMENTS FINANCIAL SUMMARY & UNIT MIX

CURRENT STABILIZED12 11% 383 $950 $1,60024 22% 745 $1,400 $1,50042 39% 978 $1,500 $2,40030 28% 1224 $1,850 $2,250

TOTAL 108 100% ± 100,272 163,500$ 223,500$ AVERAGE ± 928 1,514$ 2,069$

1 BED - 1 BATH1 BED - 1 BATH2 BED - 2 BATH3 BED - 3 BATH

DESCRIPTION UNITS % SQ. FT.RENT

1,962,000$ 2,682,000$ -5.00% (908) (98,100) -5.00% (1,242) (134,100) -2.00% (363) (39,240) -2.00% (497) (53,640) -2.00% (363) (39,240) -3.00% (745) (80,460) -3.00% (545) (58,860) -2.50% (621) (67,050) -1.50% (273) (29,430) -2.00% (497) (53,640)

1,697,130$ 2,293,110$ 1.50% 29,430 2.00% 53,640

15,987$ 1,726,560$ 21,729$ 2,346,750$

4.59% 833 90,000 3.36% 833 90,000 6.42% 1,167 126,000 4.70% 1,167 126,000 0.88% 161 17,359 0.65% 161 17,359 0.61% 111 12,000 0.45% 111 12,000 0.61% 110 11,888 0.44% 110 11,888 2.80% 509 55,000 2.05% 509 55,000 2.21% 401 43,271 1.61% 401 43,271 2.60% 472 51,000 1.90% 472 51,000 7.46% 1,356 146,400 5.46% 1,356 146,400

5,120$ 552,918$ 5,120$ 552,918$

10,867$ 1,173,642$ $16,610 1,793,832$ 67.98% 76.44%

Income SummaryCurrent

Assumptions Unit Annual Stabilized Assumptions Unit Annual

Margin

Property Insurance

Other IncomeTotal Revenue

Payroll

Utilities

Landscaping/Contractors

Repairs & Maintenece

Leasing & Marketing

General & Administrative

Management

Expenses

Revenue

Income

Real Estate Taxes

Total Operating Expenses

Net Operating Income

Net Write-offs

Vacancy Factor

Net Rent Revenue

Gross Potential Rent

Gain/Loss to LeaseConcessionsModel and Employee Units

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FAIRWAYS APARTMENTS PRO FORMA

PRO FORMA SUMMARY 2016

INCOME

Product Mix: UnitsUnit Size Gross Size

Monthly per unit

Total Monthly Income Annual income

Studio 6 383 2,298 1,000$ 6,000$ 72,000$ Studio - Furnished 6 383 2,298 1,200$ 7,200$ 86,400$ 1/1 Bed Bath (3 story) 6 728 4,368 1,300$ 7,800$ 93,600$ 1/1 Bed Bath (3 story) furnished 6 728 4,368 1,500$ 9,000$ 108,000$ 1/1 Bed Bath (7 plex) 6 601 3,606 1,300$ 7,800$ 93,600$ 1/1 Bed Bath (7 plex) Furnished 6 601 3,606 1,500$ 9,000$ 108,000$ 2/2 Bed Bath (3 story) 12 948 11,376 1,800$ 21,600$ 259,200$ 2/2 Bed Bath (3 story) Furnished 12 948 11,376 2,100$ 25,200$ 302,400$ 2/2 Bed Bath (7 plex) 5 820 4,100 1,800$ 9,000$ 108,000$ 2/2 Bed Bath (7 plex) Furnished 7 820 5,740 2,100$ 14,700$ 176,400$ 2/2 Bed Bath (5 plex) 3 820 2,460 1,800$ 5,400$ 64,800$ 2/2 Bed Bath (5 plex) Furnished 3 820 2,460 2,100$ 6,300$ 75,600$ 3/3 Bed Bath (3 story) 12 1085 13,020 2,200$ 26,400$ 316,800$ 3/3 Bed Bath (3 story) Furnished 12 1085 13,020 2,600$ 31,200$ 374,400$ 3/3 Bed Bath ( 5 Plex) 3 1224 3,672 2,200$ 6,600$ 79,200$ 3/3 Bed Bath ( 5 Plex) Furnished 3 1224 3,672 2,600$ 7,800$ 93,600$ Totals 108 91,440 186,600$ 2,412,000$

Garages 54 75$ 4,050$ $48,600Total Income 2,460,600$

Monthly per unit

Monthly expenses

Annual expenses

EXPENSES 367.93$ $39,736.21 476,834$ % of NOI 20%

NOI 1,983,766$

Fairways Apartments

PRO FORMA SUMMARY 2016 (cont.)

Operating Expense Detail Average monthly AnnualInsurance $3,605.95 $43,271.43Repairs $1,250.00 $15,000.00Supplies $3,000.00 $36,000.00Electricity $10,000.00 $120,000.00Water $1,100.00 $13,200.00Sewer $1,100.00 $13,200.00Garbage/Dumpsters $600.00 $7,200.00Cable/Satellite $2,663.67 $31,964.00Telephone/Cell Phone $753.84 $9,046.04Internet/Wifi $3,000.00 $36,000.00Equipment Rental $1,000.00 $12,000.00Landscaping Maintenance $990.67 $11,888.00Payroll $7,500.00 $90,000.00Auto Expense Fuel/Maint $2,000.00 $24,000.00Office Supplies $172.09 $2,065.02Advertising/Promotion $1,000.00 $12,000.00Total Operating Expenses $39,736.21 $476,834.49

Fairways Apartments

THE BAKKEN The Bakken Formation lies under portions of western North Dakota, eastern Montana and southern Canada and its drilling history can be traced back to the mid-1950’s. Due primarily to enhanced drilling and recovery strategies developed over the past 10 years, estimates of the Bakken’s recoverable oil and gas reserves are growing exponentially, far surpassing even the most aggressive early assessments. North Dakota jumped from the nation’s 9th leading producer of oil in 2006 to number two today, behind just Texas. Experts predict it will take decades to fully exploit this world class formation as the industry moves from the discovery phase into full production. The oil and gas industries in North Dakota show no signs of slowing and will be a mainstay of the North Dakota economy for a generation or more.

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FAIRWAYS APARTMENTS LOCAL AREA DESCRIPTION

WATFORD CITYWatford City is located in western North Dakota, surrounded by the Missouri River and Lake Sakakawea and the Yellowstone River in eastern Montana. The 2013 census reports a population of 3,284 residents, but because Watford City is located at the heart of the Bakken Oil play, the area has significantly increased in population and development since the census. Watford City is the county seat of McKenzie County and serves a large rural community with an estimated population of 11,771 residents.

The community is heavily dependent on natural resource based economies such as ranching, farming, tourism and oil exploration. With over 500,000 acres of public land in the Little Missouri National Grasslands and the Theodore Roosevelt National Park, Lake Sakakawea and the Fort Berthold Indian Reservation, the community has a sizable base of federal employees as well.

The community has developed an extensive community plan focusing on telecommunication and recreational infrastructure to attract new industry and wage earners. The physical beauty and ample recreational opportunities have been attractive to a select group of telecommuters and information technology companies, energy companies and financial and service companies.

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FAIRWAYS APARTMENTS COUNTY MAP

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FAIRWAYS APARTMENTS PARCEL MAP

SITEPH

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336

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1212

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Hunter's Run St

17 Ave

WatfordCity GolfCourse

BlackGoldHotel

BorderStates

Electric

QEPResources

HelenaChemicalCompany

ConcordEnergy

Western AreaWater Supply

AuthorityGP1806

GP23

GP23B

Subject

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181246-20290 04-21-16

| 701.770.5893 | joerkay@gmail.com

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2nd Ave SEPark Ave W

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2nd Ave NENew Watford City

Community Fitnessand Water Facility

BlackGoldHotel

ConocoPhillipsNuverra

BorderStates

Electric

Lund Oil

QEPResources

LinkLogistics

Watford CityGolf Course

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FoxHills

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| 701.770.5893 | joerkay@gmail.com

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FAIRWAYS APARTMENTS PROPERTY PHOTOS

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FAIRWAYS APARTMENTS 1 BEDROOM, 1 BATHROOM FLOOR PLANS STUDIO FLOOR PLANS

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FAIRWAYS APARTMENTS 2 BEDROOM, 2 BATHROOM FLOOR PLANS

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FAIRWAYS APARTMENTS 3 BEDROOM, 3 BATHROOM FLOOR PLANS