OUR STRATEGY IS BASED ON A PHILOSOPHY THAT

Location, Investment Time Horizon, Asset-Specific Attributes and Appropriate Leverage

ARE FUNDAMENTAL DRIVERS OF LONG-TERM VALUE CREATION IN REAL ESTATE.

Strategy Fundamentals

Local Industry Profile

Certain employment sectors are better positioned for high earnings potential

Favorable Demographics

High concentration of skilled labor and above average income

Infill Locations

Generally exhibit high barriers to entry and may be undergoing favorable redevelopment

Accessibility

Close proximity to transportation, dining, entertainment, retail venues and schools

Key Opportunities

Utilizing our ability to identify market dislocation or mispriced assets

Target Investment Allocation

65%

Target Stabililzed*
  • Income producing
  • Stabilized rents
  • Stabilized occupancy levels

35%

Target Growth*
  • Preferred equity investments
  • Mortgage or mezzanine loans
  • Equity investments in property/land (to be developed into a multifamily apartment community)

*It should be noted that figures represent what we seek as an investment allocation. Actual results may vary. Additionally, we do not expect to be able to achieve the balance of these allocations until we have raised substantial proceeds in the offering. Prior to that time, we will balance the goal of achieving our portfolio allocation targets with the goal of carefully evaluating and selecting investment opportunities to maximize risk-adjusted returns.

A Compelling Long Term Investment

There has been attractive growth in multifamily rents over the past 20 years, and we believe the future outlook continues to be favorable.*

Flexibility of Renting

Regardless of macroeconomic conditions, people still need a place to live. Many households choose to rent given maintenance costs and other burdens associated with homeownership. In addition, the ability to vary location and the lease terms associated with renting provides flexibility that appeals to many households, particularly those in younger groups who prioritize mobility.

*Based on data from AxioMetrics. Represents effective rent growth from 1996 through 2017 and projected effective rent growth from 2018 through 2022. Source material available in its entirety upon request. For illustrative purposes only. There is no guarantee that any trends discernable from the information and or data provided above will continue or that the REIT will realize any benefit from such trends.

THE LARGEST GENERATION IN U.S. HISTORY IS UPON US:
MILLENNIALS (BORN 1980 TO 2000)

92 million people*

Millennial’s Lifestyle Preferences and Financial Realities Create A High Propensity to Rent

Significant student loan debt

General preference for a flexible lifestyle

Tight credit standards in the single-family home mortgage market

The delay of marriage and children

*Source: Goldman Sachs Our Thinking “Millennials Coming of Age” Infographic; Goldman Sachs Global Investment Research, accessible at: https://www.goldmansachs.com/insights/archive/millennials/. For illustrative purposes only. There is no guarantee that any trends discernable from the information and or data provided above will continue or that the REIT will realize any benefit from such trends.

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