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VA L U E - D R I VE N RE A L E S TATE I N VE S T M E N T

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W H Y M U LT I FA M I LY ?

The strong underlying fundamentals have contributed to the staying power of the multifamily sector

Source: U.S. Census Bureau, Q4-2019; NAREIT, Annual Index Values & Returns, 2019

15 Year Average Annual Return by Asset Class

Multifamily 12.67%

Health Care 11.29%

Industrial 10.86%

Lodging 8.91%

Office 8.85%

Retail 7.47%

69%

65%

62%

63%

64%

65%

66%

67%

68%

69%

70%

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

Hom

eow

ners

hip

Rate

Year

U.S. Homeownership Rate

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0

50

100

150

200

250

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Deliv

erie

s (T

hous

ands

)

Net Deliveries

Class A Workforce

34%

43%

23%

U.S. Renters by Household Income

<$39,999 $40,000 - $99,999 $100,000+

Class A Workforce

2.07%

4.67%

Average Annual Rent Growth2010-2019

W H Y WO R K F O R C E M U LT I FA M I LY ?Workforce housing has outperformed Class A apartments due to strong demand and limited supply

CoStar, Q4-2019, U.S.

CoStar, Q4-2019, U.S. CoStar, Q4-2019, U.S.

U.S. Census Bureau, American Housing Survey, 2017

Sunstone’s Target Tenant

82.00%

84.00%

86.00%

88.00%

90.00%

92.00%

94.00%

96.00%

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Over the last 10 years, occupancy rates averaged 94% for Workforce vs. 90% for Class A

Class A Workforce

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W H O I S S U N S TO N E ?

Sunstone Properties Trust is a private real estate investment firm headquartered in Southern California. Sunstone repositions

and develops workforce multifamily housing in select markets in Arizona, California, Florida, Nevada, Texas and Utah.

Sunstone’s vertically integrated platform has generated exceptional capital appreciation and income for investors since 2012.

John Charles Maddux CEO and President

Performance Metrics

Our people and reputation are Sunstone’s greatest assets. Our mission is to create value

for our investors, preserve capital and enhance our communities.

““30.6%

1.95x

43.5%

95.7%

Investor IRR, netIncrease in

In-Place Rents

Increase in NOIEquity Multiple

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W H Y I N V E S T I N S U N S TO N E ?Sunstone is an operator, developer, and fund manger of real estate investments

Investment Strategy

Reposition and develop workforce housing

Acquire distressed debt secured by workforce housing

Target markets with sustainable economic expansion

Outstanding Performance

Historic returns to investors of 30%+ IRR

Proven track record in rent and NOI growth

Consistently high occupancy rates

Quality product, on time and on budget

Core Values

Value Creation

Transparency

Entrepreneurship

Integrity

Stewardship

Interconnected Framework

Transaction Sourcing

Due Diligence

Debt and Equity

Fund Management and Investor Reporting

Construction

Asset Management

Experienced Management

Principals involved in over $25B in real estate transactions

Leadership with over 30 years of experience

Expertise in acquisitions, finance, construction, asset and fund management

Proven ability to execute

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I N V E S T M E N T M A R K E T SSunstone focuses on markets showing evidence of sustainable economic expansion

Source: ITR Economics, June 2019; RealPage, December 2019

Job growth is the primary driver for

workforce housing and Sunstone targets

submarkets with diverse economies that

fuel employment and population growth.

Other factors considered are:

Historical resilience to economic stress

Supply/demand factors

Rental rate growth

Occupancy

Regulatory environment

Industry base and projections for

growth

Los Angeles

Houston

Dallas

Orlando

Tampa

Salt Lake City

Las Vegas

Phoenix

Austin

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S U N S TO N E ’ S TA R G E T M A R K E T SSunstone has a specific strategy for each investment given the dynamics of each submarket

Source: Oxford Economics, Q1-2020; CoStar Submarket Reports, Q1-2020; U.S. Census Bureau Q4-2019

Average of 10-Year Historical Q4-2019

Mar

ket

Job Growth Population Growth

Annual Rent Growth Occupancy Rate Homeownership

Median Household

IncomeRent/Income

Los Angeles 1.4% 0.3% 3.2% 96% 43% $72,120 32%

Austin 3.7% 2.7% 3.5% 93% 49% $80,505 19%

Salt Lake City 2.5% 1.4% 3.1% 93% 64% $77,738 18%

Phoenix 2.4% 1.7% 4.9% 92% 52% $67,453 21%

Orlando 2.9% 2.2% 4.0% 93% 49% $61,316 26%

Tampa 2.2% 1.4% 3.6% 93% 53% $57,770 25%

Dallas 2.6% 1.9% 3.5% 92% 53% $72,651 20%

Las Vegas 2.3% 1.6% 3.9% 92% 44% $58,925 22%

Houston 2.1% 2.0% 2.1% 91% 54% $67,853 20%

National Average 1.4% 0.7% 3.0% 94% 65% $64,782 25%

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I N V E S T M E N T S T R AT E G Y

Value-Add

Target IRR of 12% - 15%

Development

Target IRR of 16% - 20%

• Create value through the acquisition and renovation of workforce housing to

provide a lower cost-alternative for tenants priced out of newly constructed

Class A properties

• Eliminate operating inefficiencies through active asset management to

improve asset quality, occupancy and rent

Opportunistic

Target IRR of 15% - 20%

• Acquire distressed multifamily assets and non-performing debt secured by

multifamily properties, through a network of brokers, lenders and other

contacts

• Address management issues and deferred maintenance to increase cash flow

and have a positive impact on the well-being of residents and the community

• Consistent with California’s legislative changes easing restrictions on land

use and long-standing barriers to development, Sunstone will identify and

develop undervalued urban infill sites to provide housing to median income

families in proximity to jobs and public transit

• Sunstone will help to address the current housing crisis with reduced

building costs (construction management, supply chain management,

architecture ) to facilitate the development of moderately priced workforce

housing within markets that have high cost-burdened renters

Strategies Description Investment Examples

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S U N S TO N E ’ S P R OV E N T R AC K R E C O R D

1 Rent growth calculated using in-place rents as of the day prior to the sale date compared to in-place rents at acquisition. 2 NOI growth calculated using the annualized T-3 income and T-12 expenses prior to acquisition compared to T-3 income and T-12 expenses prior to disposition.* Past performance is not indicative of future results.

Renovated, Stabilized and Sold

Investment Villa La Jolla Creekside Westwood Village Cedar Ridge Riviera Residence at West Beach

Location (City) Houston Conroe Rosenberg Baytown Dallas Galveston

# of Units 216 102 272 276 244 133

Acquisition Date Dec-12 Jun-13 May-14 Aug-14 Jun-15 Dec-15

Sale Date Jun-16 May-16 Jul-16 Jun-16 Mar-19 Apr-19

Annual IRR 31% 32% 34% 40% 25% 22%

Investor Multiple 2.5 2.2 1.8 1.8 2.0 1.9

Rent Growth1 71% 44% 35% 35% 50% 38%

NOI Growth2 163% 72% 70% 152% 110% 73%

Fund Stand Alone Stand Alone Fund I Fund I Fund II Fund II

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C U R R E N T P O R T F O L I O

Stabilized In Renovation/Lease-Up Totals/Avg.

Investment Flintridge Village at Westchase

Commons at Westchase Willowbrook Hollister Haven at

Lake DeerHaven at

Waters Edge Haven at 1600

Location (City) Arlington Houston Houston Conroe Dickinson Winter Haven Tampa South Houston

# of Units 188 462 282 32 156 368 392 111 1,992

Acquisition Date Jul-17 Sep-16 Sep-16 Dec-16 Jan-18 Jan-18 Jul-19 Nov-19 --

Occupancy 95% 93% 92% 91% 86% 89% 91% -- 91%

Rent Growth 26% 24% 28% 28% 39% 29% 8% -- 23%

NOI Growth 72% 21% 26% NM NM 28% 23% -- 43%

Interior Renovation Status 100% 100% 100% 100% 92% 89% 14% -- 87%

DCR 2.13 2.38 2.59 1.41 2.17 1.68 2.13 -- 2.17

April Collections 94% 99% 98% 93% 96% 99% 92% -- 96%

May Collections 93% 92% 98% 92% 96% 95% 91% -- 94%

June Collections 94% 96% 99% 90% 98% 93% 91% -- 94%

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R I S K M A N A G E M E N T

9 YRS.

Avg. Remaining Loan Term

63%Avg.

Loan-To-Value

$553KAvg. Balance of

Operating Capital/Asset

2.17Avg. Debt

Coverage Ratio

6. Conservative leverage ratios are maintained throughout the portfolio

2. Workforce multifamily housing, Sunstone’s primary investment vehicle, is the real estate industry’s most resilient asset class

1. Sunstone acquires assets in selective, diverse geographic markets to limit concentration risk

4. Sunstone manages construction internally from design to finished product

• Sunstone Builder’s project managers decide which functions to subcontract and which to self perform

• Establish national and international supply chains allows product availability and delivery

• Excess costs are eliminated by removing the outside GC and other “middlemen”

5. Management decisions are made collectively with input from all areas of the company to get a measured perspective.

3. The Sunstone process begins with the end in mind usingtechnology and proprietary software to source, underwrite, budget, and schedule construction and asset management

7. Substantial reserves are established for operating expense and working capital in addition to construction contingency reserves

8. Management believes in walking every property and communicating with the on-site staff regularly

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Asset Management

INTERCONNECTED PLATFORMSunstone’s business model is one of interconnected functions, each one managed separately but operated in conjunction with all the others

Debt &

Equity

Fund

Adm

inis

trat

ion

& In

vest

orRe

port

ing SUNSTONE

INVESTORS

TRANSACTION SOURCING

Sunstone uses technology and proprietary software along with an extensive network of relationships with local brokers and property owners in each target market, to source new properties that fit the company’s criteria

UNDERWRITING AND DUE DILIGENCE

Comprehensive due diligence and analysis is performed on every potential acquisition, including the use of our proprietary underwriting model which incorporates well documented assumptions and stress testing

FUND MANAGEMENT AND INVESTOR RELATIONS

Sunstone provides transparency through its quarterly reporting and user-friendly portal giving investors access to their accounts and investment performance

ASSET MANAGEMENT

Sunstone’s asset managers work closely with the on-site property management team to ensure the successful execution of each asset specific business plan

CONSTRUCTION

By managing construction in-house, employing on-site project managers, and utilizing our national and international supply chain, Sunstone is able to ensure quality projects delivered on time and on budget

DEBT AND EQUITY

Sunstone maintains strong, long-term relationships with national and regional lenders, such as PNC, Wells Fargo, Capital One and Veritex, as well as federal lending agencies and obtains assurance of debt and equity before entering into transactions

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L E A D E R S H I PSunstone’s principals have over 30 years experience in real estate investing and development

John Charles Maddux has served as president and CEO ofSunstone Properties Trust since its inception. He waspreviously president and COO of MMPI, specializing incommercial real estate acquisition, development andmanagement. Mr. Maddux previously practiced real estatelaw with O’Melveny & Myers from 1986 to 1996 and servedas founder and shareholder of Nevers, Palazzo, Maddux &Packard from 1998 to 2005.

Mr. Maddux earned his bachelor’s degree in businessmanagement and finance from Brigham Young University’sMarriott School of Management and his J.D. from BrighamYoung University’s J. Reuben Clark Law School.

John Charles Maddux President and Chief Executive Officer

John B. Hansen serves as the Chief Investment Officer ofSunstone Properties Trust. Mr. Hansen founded GlenwoodProperties Inc. in 1987 and served as president and CEOthrough 2012. During his tenure, Glenwood developed over60 projects including multifamily, retail and office. He alsowas a founding member of Glenwood Interests LLC. Prior toGlenwood, Mr. Hansen practiced law for three years,specializing in securities and real estate. He was a foundingshareholder and director of Tomato Bank, N.A.

Mr. Hansen received a bachelor’s degree in literature fromBrigham Young University and a J.D. from the University ofUtah College of Law.

John Byron HansenChief Investment Officer

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S U N S TO N E ’ S M A N A G E M E N TThe management team provides expertise in real estate development, construction, finance, internal controls, fund management and asset management

Elizabeth FujinoChief Operating Officer

Formerly with Suburban Land Reserve; experienced in

acquisition, entitlement and asset management; B.A. from

Brigham Young University; MBA from Brigham Young University's Marriott School

Rob EgbertManaging Director

Construction Management

Former owner of Rocky Mountain Concrete;

experienced in commercial and residential construction management; B.S. in finance

from Brigham Young University's Marriott

School of Management

Sheryl MoreheadManaging Director

Capital Markets

Former financial services executive; held positions with several institutions, including

CEO, president and chief credit officer; B.S. from Boston University; MBA from Harvard

Business School

Lisa DeVallController

Previously with J.G. Management and Amgen; experienced in accounting,

finance and IT; B.S. in business finance from California

Lutheran University; CPA

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T ERM D ES CRIP T IO N

Manager Sunstone Properties Trust Advisors, LLC

Fund Amount $200 million

Minimum Commitment $1 million

Offering Period Through June 30, 2022

Product Focus Workforce Multifamily

Strategy Value-Add, Opportunistic and Development

Target Acquisition Size $10 - $75 million

Geographic Focus Arizona, California, Florida, Nevada, Texas and Utah

Loan-to-Cost 55% - 75%

Loan-to-Stabilized Value 40% - 65%

Target Investor IRR 12% - 16%

Preferred Return 6%

GP Carried Interest 20% with catch-up

Management Fee 1.5% of FMV

Protect investor capital and deliver returns through every phase of the economic cycle

S U N S TO N E M U LT I FA M I LY F U N D V I , L LC

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D I S C L A I M E RThis presentation contains forward-looking statements. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. Such statements involve risk and uncertainties that could cause the actual results to differ materially from the anticipated results expressed in these forward-looking statements. These statements are only forward-looking discussions of potential based on anticipated strategy and targets which involve a number of risks and uncertainties. Our operating results may differ materially from those projected in any such statements due to various factors, including risks and uncertainties inherent in the real estate business. You are cautioned not to place undue reliance on these forward-looking statements. All forward-looking statements are qualified in their entirety by this cautionary statement and Sunstone Properties Trust, LLC and/or its subsidiaries and affiliates (“Company”) undertakes no obligation to update these statements, except as required by law. Any references to other companies’ metrics are intended only to outline business strategy rationale and are not financial guidance by the Company. Additional risks of our industry and this offering are discussed within the Confidential Offering Memorandum. There is no liquid market for any of Sunstone Multifamily Fund VI, LLC’s securities and investors should not be reliant upon any potential future change in our privately held status. Important information is detailed in the complete Confidential Offering Memorandum. This presentation and all other offering materials are considered proprietary and confidential in all aspects and no part may be reproduced, distributed or otherwise disseminated other than in connection with advisors assisting investors to evaluate a potential investment. While we believe information contained herein has been obtained from reliable sources there can be no assurance of its accuracy or completeness. This presentation is supplied for informational purposes only and does not constitute (1) an offer to sell, or the solicitation of an offer to buy, any securities of Sunstone Multifamily Fund VI, LLC or (2) a representation that any offer will be made to the recipient or any other party. The offering is being made only to accredited investors by means of the Confidential Offering Memorandum, together with subscription materials and exhibits (“Subscription Package”), that contain more complete information including risk factors. Read the entire Subscription Package before making an investment decision. The securities are being offered in reliance upon exemptions from registration under the Securities Act of 1933 and only in the states in which the offering of securities is registered or is exempt from registration and by broker-dealers authorized to do so.

The Company was a newly formed entity with no previous operating history. Investing involves risk including loss of principal. In addition, private placement securities are speculative, illiquid and carry a high degree of risk. The Company may employ hedging techniques designed to reduce the risk of adverse movements in interest rates and commodity prices. For full risk disclosure please refer to the Subscription Package.

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Contacts

Sheryl Morehead(818) 699-6234 ext. 203

(805) 630-6672smorehead@sunstonept.com

Isaac Robledo(818) 699-6234 ext. 209

(469)243-0936irobledo@sunstonept.com

www.sunstonept.com