Allegiant Residential Partners

Allegiant Residential, headquartered in Birmingham, Alabama, is a

fully integrated multifamily operating platform that invests and

manages in high-growth Sunbelt cities with institutional and high-net

worth investors, private investment funds, third party owners, and

joint venture partners.

In Allegiant Residential, you have a senior management team with over 50 years of apartment industry experience to include the ownership, management, acquisition, disposition and development of garden, mid-rise and high-rise apartment homes across the high-growth cities of the Sunbelt and Mid-Atlantic states. We have been party to real estate transactions totaling well over $5 billion and managing a combined portfolio of up to 75,000 apartment homes.

The etymology of the name Allegiant comes from 14th century Middle English and the root word allegiance meaning “devotion and loyalty to a group and a cause.” Our commitment, devotion and loyalty will always center around each other, our partners and our shared Vision of Live Well, Laugh Often, Serve Others.

At Allegiant Residential, we invite you to experience our devotion and loyalty to your success today and in the future. We look forward to working closer with your leadership team to share in further detail how the Allegiant Vision and Mission will add value to your organization.

WWW.ALLEGIANTRESIDENTIAL.COM

Allegiant’s Vision

Allegiant’s Mission

By creating a higher standard of excellence for the benefit of all stakeholders, we will become the premier provider of multi-familyreal estate investment and management services.

Allegiant’s Values

Allegiant’s Goals

• To provide superior service to all stakeholders by integrating open and honest communication into our daily culture.

• To demonstrate a commitment to Allegiant associates by valuing professional development, demonstrating personal respect and encouraging individual accountability.

• To seek out every avenue for owners to create value and accomplish our shared vision through a steadfast commitment to growth, teamwork, and improved operations.

• To foster strategic partnerships and create innovative investment strategies.

Honesty Integrity Family

Faith Community

Teamwork Diversity Accountability


LIVE WELL, LAUGH OFTEN, SERVE OTHERS.


About Our Hedgehog...Evolution

As Jim Collins focuses on in Good To Great, for a company to evolve from good to great, it must stick tothe one thing it can do better than any of its competition in the country. Allegiant’s hedgehog is owning and operating institutional quality, multifamily assets in high-growth Sunbelt markets... that is the only thing we do. What is most important in prosperous times and in lean times is sticking to your basic “hedgehog,” but continously evolving and adjusting to the Physical Market Cycle Characteristics as outlined by Mueller below.

About Our Core Hedgehog Strategies

• People–Recruit, train, and retain the best and brightest in the industry.• Revenue Maximization Focus–achieving the expense budgets are second nature, 95% of the effort

is focused on maximizing revenues at all levels.• Key Performance Indicators–meaningful and value-added for all stakeholders• Accounting/Human Resources/Information Technologies–must be world-class to support the

needs of the residents, internal and external customers.• Market Knowledge–gained by “feet on the street” knowledge supplemented with market leading data.• Communication–integrating open and honest communication into daily routines with internal and

external stakeholders breaks down barriers.• Fail Forward–We all learn from the failures we have made in the past and will make in the future. We use these opportunities to learn and move forward to future success.

• Celebrate–Never miss the opportunity to applaud the success of our associates for a job well done by an individual or the efforts of the team.

About Our Investment Strategy

Though there may be opportunities to create value for our investors in multiple facets of real estate, however, Allegiant Residential will stick to the “Hedgehog” of well-located apartment homes that meet most of the following criteria:

• Properties sized between 200-400 apartments that are considered class A to B; furthermore a class B asset, in a well located sub-market with a value-add component.• Properties in primary or secondary Sunbelt MSA’s with employment of at least 500,000 jobs.• Properties preferably in Sunbelt Capital cities with large university infrastructures.• Properties that are within 10 miles of large employment concentrations or along current or future high-speed rail lines. • Properties that are within 5 miles of significant support retail.

The Allegiant Competitive Advantage

This is not a Distressed Fund opportunity driven by aggressive internal IRR hurdles toquickly flip assets to achieve promote thresholds. Our business plan is to acquire qualityassets in institutional markets for a 5-8 year hold period.

Fresh capital with no current exposure to the challenges facing the real estate market.

Ability to move very quickly due to our lack of bureaucracy to make a decision to moveforward on an acquisition.

Ability to close all-cash, if need be, to get an acquisition completed in a timely mannerto meet the needs of the seller.

In-depth knowledge of target markets through Allegiant Residential’s boots on theground experience.

Ability to identify creative financing solutions utilizing the diverse financial skillsets of the principals.


Creating long-term value for owners, and thus Allegiant Residential, means identifying those markets that have staying power from an annual employment growth perspective. Long-term rent growth equals long-term value creation for all stakeholders.

Average Annual Forecast

Employment Growth Rate (2009-2013)

Washington - NoVA - MD

Seattle

San Antonio

Salt Lake City

Raleigh

Portland

Palm Beach CountyOrlando

Las Vegas

Inland Empire

Indianapolis

Houston

Fort LauderdaleDenver

Dallas - Fort Worth

Columbus

Charlotte

Austin

Atlanta

2.00%

2.50%

3.00%

3.50%

PPR 13

Source: BLS

Historical Beta (1976-2009Q1)

TampaSt. Louis

Stamford

San JoseSan FranciscoSan Diego

Sacramento

Richmond

Portland

PittsburghPhoenix

Philadelphia

Orange CountyOklahoma City

North - Central New JerseyNorfolk

New York

New Orleans

NashvilleMinneapolis

Milwaukee

Miami

Memphis

Los AngelesLong Island

Kansas City

Jacksonville

Honolulu

Hartford

East Bay

Detroit

Columbus

Cleveland

Cincinnati

Chicago

Boston

Baltimore

0.00%

0.50%

1.00%

1.50%

0.300 0.500 0.700 0.900 1.100 1.300 1.500 1.700 1.900 2.100


About Our Target Markets

Allegiant based its selection of our primary investment and management target markets on the demographic fundamentals that will drive multifamily values for years to come. A heavy concentration of the Echo Boom Population will be focused in major employments MSA’s in the Sunbelt and Mid–Atlantic.

We will focus our efforts on Class A to B multifamily garden, mid-rise and high-rise assets in the following markets highlighted in green that show favorable population and demographic trends.

With that change in population, will come an increase in renter households in those respective markets.


Austin5 year change in Renter

Households East West SouthMidWest

Seattle

San Francisco

San Antonio

Salt Lake City

Sacramento

Raleigh

Portland

Phoenix

Palm Beach County

Orlando


Las Vegas

Indianapolis

Houston

Fort Lauderdale

Denver

Dallas - Fort WorthCharlotte

Atlanta

5%

7%

9%

11%

PPR 39

Sources: PPR; Moody's Economy.com

5 year Percent change in population

(20-34 year olds)

Washington - NoVA - MD

Tampa

Stamford

St. LouisSan Jose

San Francisco

San Diego

Richmond

Pittsburgh

Philadelphia

Orange CountyOklahoma City

North - Central New Jersey

Norfolk

New York

New Orleans


MilwaukeeMiami

Memphis Los AngelesLong Island

Kansas CityJacksonville

Inland Empire

Honolulu Hartford

East Bay

Detroit

Columbus

Cleveland

Cincinnati

Chicago

Boston

Baltimore

(2%)

1%

3%

5%

(2%) 0% 2% 4% 6% 8% 10% 12% 14% 16%

West SouthEast Midwest

Percentage Change inPopulation 2009-2013

4%

6%

8%

10%

12%

14%

16%

18%

PPR 40

Sources: Moody’s Economy.com; PPR

(2%)

0%

2%

4%

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Austin

Sacra

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Charlott

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Min

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San F

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Milw

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Salt L

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*As of 09Q1

The Allegiant Operations Solution

ASSOCIATES

• Pedigree of respected industry leaders that harbor a climate of trust.• By utilizing Success by Selection, we are able to recruit and retain the best and brightest in the

multifamily industry who will continue to redefine these roles.• Comprehensive training programs for each associate–specifically focused on leadership

enhancement while protecting divergent views.• Associates that are empowered to enhance proven strategies and engage new creative

solutions to today’s market conditions.

ENHANCEMENTS:

• Drive property value through precise execution of the following:• Develop and execute 5-year strategic property asset plans• Revenue maximization implementation–LRO• Detailed market studies and thorough market knowledge–Axiometrics / Pierce-Eislen• Measurable customer service results–Satisfacts• Ad Valorem Tax review and protest, if necessary• Risk Management mitigation• Superior capital contract procurement and implementation

• Meaningful Key Performance Indicators• Institutional Quality Financial Reporting• Market leading technology to streamline processes and enhanced customer experience

ALLIANCES:

• Property Operating and Accounting Software–MRI• Revenue Maximization Software–LRO• Call Center potential to provide enhanced service–Level One• On-Line purchasing platform to leverage purchasing power–OpsTechnology• Comprehensive Human Resources Administration–TriNet• Market leading ancillary contract maximization–all national vendors

TALENTS:

• Fully integrated multifamily operating platform• Lease-up capabilities and expertise• Due diligence capacity• Mid-Rise/High-Rise/Garden-Style expertise


About the Founders

RAY HUTCHINSON – PRINCIPAL AND FOUNDING MEMBER

Mr. Hutchinson has more than 20 years of multifamily experience in management, acquisition, dispositionand development of garden, mid-rise and high-rise apartment homes. By investing in properties located in high-growth cities of the Southeast and Mid-Atlantic states, Hutchinson has managed real estate transactions totaling well over $4 billion.

Most recently, Mr. Hutchinson served as Executive Vice-President of Colonial Properties Trust, one of the country’s premier real estate investment trusts (REIT’s). During his tenure, he more than doubled Colonial’s nearly 20,000 apartment homes to almost 50,000 apartment homes and an enterprise value of $3.5 billion. Under his leadership, the division, which included more than 1,000 associates and 120 properties,managed explosive growth and unprecedented success.

Mr. Hutchinson holds a Bachelor of Science Degree from the University of Central Florida. During his career he has been involved in a number of local and state industry and civic groups, including National Multi-Housing Council, Big Brothers and Big Sisters and the National Apartment Association.

RANDALL ELL – PRINCIPAL AND FOUNDING MEMBER

Randall Ell has over 27 years of experience in the real estate business and multifamily operations. He wasemployed for 13 years with Summit Properties where he served as Executive Vice President of Summit Properties and President of Summit Management Company. Summit Properties was a publically held REITactive in the operation, acquisition, management, development and construction of luxury multifamily garden, mid-rise and high-rise communities. Summit Properties owned and managed over 90 properties and 24,000 units in the Southeast and Texas encompassing 12 states with associates numbering over 700. Mr. Ell provided strategic direction with responsibilities for all Property Operations, Marketing, Human Resources, Training, Asset Management, Capital Projects, Ancillary Income, and Tax Appeals. His depth of multifamily experience encompasses over 20 major Sunbelt markets.

Mr. Ell holds a Bachelor of Science Degree in Economics from UCLA and currently lives in the Charlotte, NC area. During his career he has served for 10 years on the Advisory Committee for the School of Property Management at Virginia Tech University. He is a former member of the National Multi-Housing Council and the National Apartment Association.

Contact Information

Ray Hutchinson (205) [email protected]

Randall Ell (704) 506-6333 [email protected]


Documents

Allegiant Residential Partners