Acquisitions / Target Markets:

The Fund is investing exclusively in multifamily properties located in the five target markets listed below. The majority of the market allocation will be in Coastal California followed by Seattle and Denver with limited concentrations in Portland and Phoenix.

1. Coastal California:

San Francisco Bay Area
Los Angeles
Orange & San Diego Counties

2. Seattle:

Greater Puget Sound

3. Denver:

Downtown
Tech Center
Major metropolitan areas

4. Phoenix:

Downtown
SE Phoenix
Scottsdale

5. Portland:

Greater metropolitan area

Desired characteristics of a typical Fund investment include:

Property Type:

Multifamily – garden style, mid-rise or high rise communities.

# Units:

80 – 500 units

Age:

10 – 40 years old

Location:

In-fill, high barriers to entry, access to employment, transit, shopping and recreation.

SOLTERRA AT CIVIC CENTER

Norwalk, California

  • Purchased from a large national REIT, closed June 28, 2013
  • 192 units, favorable distribution of 1Br, 2Br, and 2Br TH apartments
  • Close proximity to major employers including Norwalk Civic Center, local distribution and manufacturing facilities, schools, and a short drive to Downtown L.A. and Los Angeles International Airport.
  • Value-add renovation plan includes updating the common area amenities, new exterior multicolor paint scheme, and new unit interiors. Residence interiors include new plank flooring and carpet, a lighting package, window treatments, and resurfaced countertops. A luxury option is also available with new stainless steel appliances and granite counters.

THE SUMMIT

Redmond, Washington

  • Purchased from a private seller and closed July 31, 2013
  • 96 units, all of which are large 2Br / 2Ba apartments
  • Close proximity to major employers including Microsoft's word headquarters campus, local technology firms and trade colleges, and downtown Redmond. The property is a short drive to Downtown Seattle.
  • Value-add renovation plan includes modernization of the clubhouse and leasing center creating a new space for residents to relax or work, a new multicolor exterior paint scheme, and new interior upgrades which include flooring and a new stainless steel appliance package. Some units will also receive new cabinet packages as needed. A new state-of-the-art fitness center is also being added.

Arabella

Denver, Colorado

  • Purchased from an institutional seller and closed August 30, 2013
  • 156 units with an ample mix of Studios, 1Br, and 2Br apartments
  • A-Class location in the Denver Tech Center which provides the opportunity for substantial rent improvement once the value-add renovation plan is underway.
  • Value-add renovation plan includes upgraded plank flooring, stainless appliances, upgraded lighting and hardware, two-tone paint and granite counter-tops. Washer and dryers will be added to 42 one and two bedroom units. Improvements will be made to building exteriors with new balcony railing systems, wood repairs, a complete repainting with contemporary multicolor paint scheme, ground level patio expansions, and a new outdoor pool area including a spa and outdoor kitchen. All common area amenities including the leasing office, fitness center, and business center will be updated.

HILLS OF DIAMOND BAR

Diamond Bar, California

  • Closed December 12, 2013
  • 204 units, all of which are 2 bedrooms including some 3 bedroom floor-plans
  • Excellent location renowned for its school district and near employment hubs in Los Angeles, San Gabriel Valley, and Orange County. Diamond Bar is a high barrier to entry market with supply constraints.
  • Value-add plan consists of complete renovation and re-use of multiple common area amenity spaces. All exterior siding and balcony elements are being redesigned with a modern look. Unit interiors will also be upgraded with new stainless steel appliances, flooring, hardware and plumbing fixtures. Additionally, some the 2+1 units will be converted to 2+2’s.

GABLES AT MOUNTAIN PARK

Lake Oswego, Oregon

  • Closed January 9, 2014
  • 129 units offering a mix of 1Br / 1Ba and 2Br / 2Ba each with a loft option with select units.
  • Located a short drive to downtown Portland, Lake Oswego is a premier suburb which offers an excellent school district and upscale shopping and dining. One of four apartment communities in the Mountain Park HOA, Gables’ residents are provided access to the association’s recreation clubhouse which includes an aquatic center, tennis courts, fitness center, parks, 175 acres of common property and eight miles of trails.
  • The renovation plan will bring all interiors to a higher level interior finish that is similar to adjacent newer properties. The interior renovation will include new cabinet facing and doors, granite counters, stainless steel appliances, wood-look vinyl flooring, new lighting and plumbing, panel doors and new window/ door trim and baseboards. The clubhouse / common areas will be updated with a state-of-the-art demonstration kitchen, a WI-FI lounge, outdoor kitchen and lounge areas, enhanced pool area and entry “curb appeal” enhancements.

ALTERRA

San Jose, Callifornia

  • Closed February 19, 2014
  • 143 units offering spacious 1Br / 1Ba and 2Br / 2Ba. The 1Br / 1Ba floor-plans also have a den which effectively functions as a second bedroom.
  • Located in the heart of Silicon Valley, nearby employers include Cisco Systems, Apple, eBay, Hitachi and Adobe Systems. Previous ownership completed significant exterior and common area renovations that include new paint and private access gating to the community as well as pool area upgrades.
  • The interior renovation plan includes new kitchen cabinet facing and doors, new laminate countertops, a stainless steel appliance package, wood-look vinyl flooring, upgraded carpet, new lighting and plumbing fixtures, mirrored closet doors and paneled interior doors. A significant marketing effort will be initiated to position the 1/1 Den units as 2/1-units Very little work is required for the exterior of the property and common areas given the recent renovation.

PINE@SIXTH

Long Beach, California

  • Purchased from a large national REIT, closed December 10, 2014
  • 158 units, mix of studios, 1 Br and 2Br apartments – all with loft options 5 retail units – one is used as leasing center
  • Located in the heart of coastal downtown Long Beach, southwest Los Angeles County; walkable to restaurants, bars, shopping, entertainment, employment and beaches
  • Value-add renovation plan includes stainless steel appliances, addition of washer/dryer units, hard surface countertops, new fixtures and hardware, modernized lighting, ceiling fans, plank vinyl flooring, warm paint schemes along with smoothed ceilings. Exterior and common areas will receive a multi-tone paint scheme, enhanced design modifications and new signage for both the apartment and retail components. Residents will receive an upgraded fitness center, dog wash facility, expanded resident storage and a brand new outdoor living experience within the courtyard. Leasing office will be relocated and reimagined.

ALTA VISTA

Escondido, California

  • Closed August 20, 2014
  • 102 unit; mix of 1 Br, 2 Br and 3Br units
  • Located in the city of Escondido in the North County area of San Diego. Alta Vista is located off the I‐15 Corridor, providing residents with easy access to major employment centers, the new Palomar Medical Center, several retail amenities and all metro areas of Southern California.
  • Escondido is supply constrained with virtually no development pipeline. Interior renovation plans include adding a stainless steel appliance package, granite countertops, fixtures, lighting, wood-like vinyl plank flooring and other upgrades. Exterior and common area upgrades include landscaping, cutting‐edge fitness center equipment, and a fresh interior design plan for the leasing center and pool/sundeck area.

WESTVIEW HEIGHTS

Portland, Oregon

  • Closed August 20th, 2014
  • 197 units (1 used as leasing office), all units are 2 and 3 bedroom townhomes with direct access garages and washer/dryer units
  • Located near Portland’s “Silicon Forest” and sportswear hub just off highway 26 and adjacent to Hillsboro and Beaverton
  • Prior ownership tested interior renovations and achieved an attractive return on cost for upgrades. SRMF's interior renovation plan includes a new stainless steel appliance package, wood‐look plank vinyl flooring throughout the downstairs common areas, new laminate countertops, upgraded carpet, new lighting, hardware enhancements and 2 tone paint. Due to its recent 2002 vintage, very little work is required for the exterior of the property and common areas.

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