EQUITY INVESTMENT CASE STUDY

Property: Prosper Azalea City, a 300-unit multi-family property in Valdosta, GA

Description: The Prosper Azalea City (formerly Arbor Trace Apartments) is a 300 unit apartment community located in Valdosta, GA. The surrounding area includes multiple stabilized rental communities with high occupancy, a bustling commercial center and several large employers. The community features a mix of 1, 2, and 3 BR apartments, many recently renovated and maintains a high effective occupancy (90%) and low operating cost. The rents at the community are under market by at least 15% leaving room for an aggressive revenue strategy post close. At the same time, the community has been well-maintained and will not require significant capital improvement to bring rents to market rate. This makes it an extremely attractive investment opportunity for DLP.

Purchase Price: $11,392,500 Price Per Unit: $37,975 Equity Investment: $5,900,000

Unit Breakdown:

Financial Overview:

Unit Type # of Units SF In-Place Rent Pro-Forma Rent

1 bed / 1 bath 64 550 $537 $625

2 bed / 1 bath 164 900 $593 $686

2 bed / 2 bath 52 1,050 $678 $771

2 bed / 1 bath 20 1,230 $778 $876

Totals/Avg 300 262,000 $608 $700

Total Five Year Project Return: 23.7% Annualized IRR on an Asset Level

2.54x Investor Equity Multiple