ok...potential upgrades to finishes and kitchen appliances, the installation of washer/dryers in...

OKPORTFOLIO

3

EXECUTIVE SUMMARY

3 Properties | 512 Units | Affordable-to-Market Value Add Opportunity | Oklahoma City, OK

CROWN R IDGE OF E DMOND

CHAPEL R IDGE OF TINKER

CHAPEL R IDGE OF YUKON

2 OK3 PORTFOLIO

EXECUTIVE SUMMARY | OK3 PORTFOLIO

J ones Lang LaSalle Americas, Inc. (“JLL”) is pleased to offer the exclusive opportunity to acquire the OK3 Portfolio, a three-property, 512-unit Portfolio in the Oklahoma City MSA. The Portfolio represents an attractive, value-add opportunity as all three Properties are currently going

through a market-rate conversion from affordable housing. An Investor will benefit from significant, organic rent growth as nearby unrestricted communities achieve rents more than $200 higher than in-place affordable rents across the Portfolio.

THE OFFERING

Property Name Crown Ridge of Edmond Chapel Ridge of Yukon Chapel Ridge of Tinker

Address: 2500 Thomas Dr 11501 SW 15th Street 5707 SE 48th Street

City, State: Edmond, OK Yukon, OK Oklahoma City, OK

Year Built: 2004 2005 2005

Number of Units: 160 units 200 units 152 units

Start of Decontrol: October 2020 October 2020 October 2020

Termination of Affordable Restrictions: October 2023 October 2023 October 2023

CROWN RIDGE OF EDMOND

*Any unit that turns over between now and October 2023 may be converted to market-rate. 100% of units will be market rate after decontrol in October 2023.

CHAPEL RIDGE OF YUKONCHAPE L RIDGE OF TINKER

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INVESTMENT HIGHLIGHTS

+8%+5%

+4%+5%

+9%+4%

+5% +2%

+11%

+6%+4%

+6%

$1,350,000

$1,550,000

$1,750,000

$1,950,000

$2,150,000

$2,350,000

Dec. 2020T12

2021 2022 2023 2024

GPI

Crown Ridge of Edmond Chapel Ridge of Tinker Chapel Ridge of Yukon

Market-Rate Conversion Currently Underway, Resulting in Outsized Revenue Growth

All three Properties are currently in a 3-year decontrol, during which existing affordable units may convert to market-rate. All Properties will be fully market-rate by October 2023. A Buyer will be able to realize outsized rent growth not only from the conversion of affordable units to market-rate, but also due to the significant spread of market-rate comps over in-place leasing, which is currently $216 on average across the Portfolio.

Spread in Market Rents over Portfolio In-Place

JLL’s Projected Increase in GPI by Year

Prime Locations Adjacent to Major Employers in Rapidly-Growing & Diversifying MSA

Value Add Opportunity

Population Growth within 1 Mile Radius

(Portfolio Avg.), 2010-2020

Large Floorplans & Suburban Location Drives Demand

Oklahoma City has experienced 15% population growth since 2010 and the diversifying metro economy is supported by broadening aviation/aerospace, energy, and biotech sectors. The Portfolio’s immediate economic drivers include Tinker Air Force Base, the University of Central Oklahoma, as well as significant logistics and industrial hubs, meaning residents enjoy excellent access to employment in high-growth areas. OKC continues to attract new business with Costco being the most recent, promising 1K new jobs to the area over the next 3 years.

The Portfolio offers Investors a value-add opportunity. With potential upgrades to finishes and kitchen appliances, the installation of washer/dryers in additional units, as well as upgrades to the amenity package, Investors have the opportunity to generate premium rents on top of already outsized rent growth.

The Portfolio has some of the only 4 bedroom units available in each submarket. COVID has only increased demand for larger unit sizes, and properties outside of the Central Business District such as the Portfolio are outperforming properties located in core areas.

33%Population Growth in OKC metro, 2010-2020

15%Students at UCO,

3,000 employees and 800+ faculty

17,000Percent Tinker AFB

Payroll Appropriated to Personnel Living

Off-Base

88%

Average spread of renovated peers and

new construction comps over in-place leasing

$289

Population of submarket in a family household

(portfolio avg.), driving demand for larger units

82%

$854

$1,077

$789

$1,036

$779

$959 $947 $949 $893

$0

$200

$400

$600

$800

$1,000

Crown Ridge ofEdmond

Crown Ridge ofEdmond - Market

Rate Comps

Chapel Ridge ofYukon

Chapel Ridge ofYukon - Market Rate

Comps

Chapel Ridge ofTinker

Chapel Ridge ofTinker - Market Rate

Comps

In-Place Lease Rents JLL Proforma

4 OK3 PORTFOLIO


CROWN RIDGE OF EDMONDProperty Name Crown Ridge of Edmond

Address: 2500 Thomas Dr

City, State: Edmond, OK

Year Built: 2004

Number of Units: 160 units

Start of Decontrol: October 2020

Termination of Affordable Restrictions: October 2023

Current Unit Mix Unit Description SF

Proforma Unit Mix1

2020 Max LIHTC Rents2

JLL Est. 2021 Max LIHTC Rents2

In-Place Lease Rents

JLL Proforma Market Rents

JLL Proforma Annual Market

Rent

8 1 Bed, 1 Bath, 60% AMI 673 3 $759 $759 $672 $759 $72,864

8 1 Bed, 1 Bath, Market 673 13 -- -- $716 $775 $74,400

59 2 Bed, 2 Bath, 60% AMI 912 27 $910 $910 $801 $910 $644,280

37 2 Bed, 2 Bath, Market 912 69 -- -- $830 $950 $421,800

24 3 Bed, 2 Bath, 60% AMI 1,085 10 $1,050 $1,050 $933 $1,050 $302,400

16 3 Bed, 2 Bath, Market 1,085 30 -- -- $967 $1,150 $220,800

8 4 Bed, 2 Bath, Market 1,285 8 -- -- $1,200 $1,250 $120,000

160 950 160 $934 $932 $854 $947 $1,856,544

1) Proforma Unit Mix takes into account affordable units converting to market-rate from January 1, 2021 through June 30, 2021. 2) Max LIHTC rents take into account applicable utility allowances.

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University of Central Oklahoma• 17,000 undergrad and grad

students• 800+ faculty, 3K employees

Downtown OKC25 min drive

Home Values $250K - $300KHome Values $250K - $300K

Nort

h Bl

vdNo

rth

Blvd

Midwest City Town Center Plaza673K SF retail

Edmond North High School / John Ross Elementary

Downtown Edmond

W Covell RdW Covell Rd

N Kelly Ave

N Kelly Ave

of Edmond

6 OK3 PORTFOLIO


CHAPEL RIDGE OF YUKONProperty Name Chapel Ridge of Yukon

Address: 11501 SW 15th Street

City, State: Yukon, OK

Year Built: 2005





Proforma Unit Mix1






Rent

37 1 Bed, 1 Bath, 60% AMI 673 14 $759 $759 $666 $759 $126,374

3 1 Bed, 1 Bath, Market 673 26 -- -- $687 $775 $242,963

73 2 Bed, 2 Bath, 60% AMI 912 27 $910 $910 $744 $910 $298,935

23 2 Bed, 2 Bath, Market 912 69 -- -- $797 $925 $761,738

36 3 Bed, 2 Bath, 60% AMI 1,083 13 $1,050 $1,050 $854 $1,050 $163,800

20 3 Bed, 2 Bath, Market 1,083 43 -- -- $950 $1,100 $567,600

8 4 Bed, 2 Bath, Market 1,288 8 -- -- $1,094 $1,200 $115,200

200 927 200 $906 $905 $789 $949 $2,276,609


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OKC Outlets434K SF retail

Hobby Lobby HQ• Corporate office & distribution• 5,100 employees • 9.3M SF campus

Westgate Marketplace814K SF retail

Corporate Offices• 2,300 employees• 247,000 SF campus


Home Values $200K - $250KHome Values $200K - $250K

Industrial CorridorIndustrial Corridor17M SF industrial17M SF industrial

Sorting Center

• $3M, 300K SF campus• Amazon employs 5K metro-wide

John Kilpatrick TurnpikeJohn Kilpatrick Turnpike

SW 15th St

SW 15th St

Mustang North Middle School / Mustang Creek Elementary Shool

of Yukon

Mustang Creek Crossing• 260-acre mixed use development• First storefront delivered in 2020• 400K SF retail, 500K SF office, 1,200

residential units, 300 hotel rooms, 1,000 seat music venue, 10-acre park

8 OK3 PORTFOLIO


CHAPEL RIDGE OF TINKER


Proforma Unit Mix1






Rent

8 1 Bed, 1 Bath, 60% AMI 673 3 $759 $759 $640 $750 $27,000

8 1 Bed, 1 Bath, Market 713 13 -- -- $699 $750 $117,000

65 2 Bed, 2 Bath, 60% AMI 912 24 $910 $910 $714 $850 $244,800

27 2 Bed, 2 Bath, Market 912 68 -- -- $748 $850 $693,600

20 3 Bed, 2 Bath 60% AMI 1,085 7 $1,050 $1,050 $928 $1,025 $86,100

20 3 Bed, 2 Bath, Market 1,085 33 -- -- $918 $1,025 $405,900

4 4 Bed, 2 Bath, Market 1,288 4 -- -- $1,036 $1,100 $52,800

152 944 152 $927 $925 $779 $893 $1,627,200

Property Name Chapel Ridge of Tinker

Address: 5707 SE 48th Street

City, State: Oklahoma City, OK

Year Built: 2005





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Midwest City Town Center Plaza673K SF retail


Jarman Junior High School

of Tinker

Midwest City Elementary Tinker Air Force Base• MSA’s largest employer with 26K

military and civilian employees• $4.83B economic impact

• 3,200 employees in aerospace• Adding 300 new jobs and a

$20M, 61K SF facility in 2020

Parkview ElementaryS Sooner RdS Sooner Rd

SE 59th StSE 59th St

10 OK3 PORTFOLIO


PROPERTY LOCATIONS

Tinker Air Force Base

Will Rogers World Airport

OKLAHOMA CITY

§̈¦44

§̈¦40

§̈¦35

§̈¦35

ST102

ST152

ST3

ST92ST37

ST9

ST74

ST102

Chapel Ridge of Yukon

Chapel Ridge of Tinker

Crown Ridge of Edmond

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TINKER AIR FOR CE BASE

CHAPEL R IDGE O F T IN KE R

UNIVERSITY OF CE N T RAL O KL A HOMA

CROWN RIDGE OF EDMOND

DOWNTOWN OKC

CHAPEL RIDGE OF YUKON

BRICKTOWN OKC

OKL AHOMA STATE CAPITOL

HOBBY LOBBY CORPORATE HEADQUARTERS

3344 Peachtree Rd NE Suite 1200 | Atlanta, GA 30326

www.us.jll.com/capitalmarkets

Jones Lang LaSalle Americas, Inc. or its state-licensed affiliate (“JLL”), a licensed real estate broker, has been engaged by the owner of the property to market it for sale. Information concerning the property [properties] described herein has been obtained from sources other than JLL, and neither Owner nor JLL, nor their respective equity holders, officers, directors, employees and agents makes any representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all reference to age, square footage, income, expenses and any other property specific information are approximate. Any opinions, assumptions, or estimates contained herein are projections only and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a purchaser. JLL and owner disclaim any liability that may be based upon or related to the information contained herein. Prospective purchasers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change. The Property may be withdrawn without notice. If the recipient of this information has signed a confidentiality agreement regarding this matter, this information is subject to the terms of that agreement. ©2021. Jones Lang LaSalle IP, Inc. All rights reserved. **The outbreak of the COVID-19 virus (novel coronavirus) since the end of January 2020 has resulted in market uncertainty and volatility. While the economic impact of a contagion disease generally arises from the uncertainty and loss of consumer confidence, its impact on real estate values is unknown at this stage. Given the prevailing domestic and global uncertainty arising from the Coronavirus, we recommend that the intended recipients of this information regularly seek our guidance.

Contact information

Michael FoxSenior DirectorAffordable Housing+1 404 942 [email protected]

Steven HahnSenior DirectorDallas Multi-Housing IA+1 214 692 [email protected]

PRIMARY ADVISORS

C.W. EarlySenior Managing DirectorAffordable Housing+1 972 646 [email protected]

Wilson BauerDirectorCapital Markets+1 469 232 [email protected]

David LottVice PresidentAffordable Housing+1 727 437 [email protected]

Melissa BloemAssociateAffordable Housing+1 404 942 [email protected]

Cody DoolinAssociateAffordable Housing+1 512 593 [email protected]

Daniel NaumannAnalystAffordable Housing+1 404 460 [email protected]

Clifford MurphyAnalystAffordable Housing+1 404 460 [email protected]

ANALYTICAL SUPPORT

CAPITAL MARKETS ADVISORS

Doug ChildersSenior Managing DirectorAffordable Housing+1 404 942 [email protected]

Michael FurrowDirectorAffordable Housing+1 512 368 [email protected]

ADDITIONAL AFFORDABLE HOUSING TEAM MEMBERS

Robert DmytrykBroker of Record+1 858 699 [email protected]

BROKER OF RECORD

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