THE PARK AT CANYON RIDGE

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1 THE PARK AT CANYON RIDGE 272 UNITS NEAR DTC & FITZSIMONS DENVER, COLORADO

2 EXECUTIVE SUMMARY HFF is pleased to present the opportunity to acquire The Park at Canyon Ridge ( Property ), a 272-unit, garden-style apartment community within walking distance to major retailers and located in Denver, Colorado. The Park at Canyon Ridge is located in southeast Denver near the intersection of Havana Street and Florida Avenue and enjoys exceptional access to the region s largest employment, recreation and retail destinations. Constructed in 1986, the Property offers a desirable low-density setting with 15, threestory rental buildings and one clubhouse covering nearly 13 acres. Current ownership implemented a renovation program that has been well-received by current and prospective tenants, however rents at competing properties in the submarket remain more than $150 greater than those at The Park at Canyon Ridge. A new investor has the opportunity to upgrade the remaining apartment homes and common areas to immediately drive increased rental revenue for years to come. The Park at Canyon Ridge offers residents a generous amenity package, highlighted by a large swimming pool, fitness center, and a spacious private dog park. All apartments at The Park at Canyon Ridge feature washers & dryers, fireplaces, and private balconies. Beyond the bountiful amenities within the property boundaries, The Park at Canyon Ridge enjoys convenient access to several shopping centers, leaving residents within walking distance of major retailers, including King Soopers (Kroger), Costco, Target, Sprouts, Chipotle, and Starbucks. Offering Summary The Park at Canyon Ridge is being offered to the market unpriced and subject to the assumption of in-place debt. Address 9757 E Colorado Ave Denver, CO Units 272 Year Built 1986 Average Unit Size ±785 Square Footage ±213,396 Site Size ±12.93 Acres ±21 du/acre Parking 489; 1.8 spaces per unit Avg Market Rent $1,350 Avg Market Rent/SF $1.72 Occupancy 96%* *Based on the March 20, 2017 Rent Roll 2 THE PARK AT CANYON RIDGE

3 INVESTMENT HIGHLIGHTS Access to Abundant Retail Amenities The Park at Canyon Ridge is located less than one mile from The Gardens on Havana, a 550,000 SF retail center anchored by Kohl s, Target, Dick s Sporting Goods, and Sprouts. Additionally, adjacent to the Gardens on Havana are a Costco, King Soopers (Kroger), Safeway, and Lowe s. Strategic Southeast Denver Location The Park at Canyon Ridge provides convenient access to a number of the region s major employment centers, three of which are located within 5 miles of the property Aurora s $5.2 billion Fitzsimons Medical Campus, Denver s dynamic Southeast Business Corridor, and Buckley Air Force Base. The Park at Canyon Ridge is also located less than 3 miles west of Interstate 225, offering a quick connection to Interstates 70 and 25 and a short commute to Denver International Airport. Outstanding Submarket Performance The Park at Canyon Ridge s submarket has posted impressive performance over the last 20 quarters, averaging annual rent growth of 8.21% and occupancy levels above 95%. Rent growth in the submarket has outpaced the greater Denver market by 5% during the same period. Submarket drivers such as proximity to the region s expanding employment centers and central location within Denver continue to drive demand in the submarket. Looking ahead, forecasts for this submarket remain strong, with projected annual effective rent growth averaging 3.76% per year through Prestigious Cherry Creek Schools The Park at Canyon Ridge is conveniently located in the Cherry Creek School District, which consistently ranks amongst the top in the state. Many Denver area residents choose to live within the Cherry Creek Schools boundaries because the quality greatly exceeds that found in most other parts of the metro area. New Light Rail Station Nearby Less than 10 minutes away from The Park at Canyon Ridge is Iliff Station, a park-n-ride location with 600 parking spots and access to the H Line to Downtown Denver and the R Line, with direct access to the Denver Tech Center and Southeast Business Corridor, and connection to Denver International Airport. Residents enjoy easy connection to one of the most advanced and extensive public transportation systems in the country, with access to the entire Denver Metro area. Limited Competition from New Supply Currently there is only one new property under construction within a 3-mile radius of The Park at Canyon Ridge. Limited new deliveries, scarcity of nearby development land, and high development costs in Arapahoe County combine to create significant renter demand within the submarket. There has also been just 3 market rate communities delivered within a 3-mile radius of the Property since Current rents at these newer construction properties average approximately 26% greater than current rents at The Park at Canyon Ridge. Rare Loft & Townhome-Style Units Half of the homes at The Park at Canyon Ridge are loft or townhome-style, providing a rare and attractive alternative to competing properties. All of the two-bedroom units at the Property are townhome-style and feature a main level master bedroom, along with a second bedroom upstairs with an enclosed bathroom. All townhome-style units come with a large private terrace accessible from both the living room and master bedroom. The one-bedroom loft-style units feature a main-level master bedroom with an additional loft on the second level, which can be used as an office or second bedroom. These units also feature an expanded first-level terrace and second balcony, providing additional outdoor living space. 3 THE PARK AT CANYON RIDGE

4 VALUE-ADD OPPORTUNITY Current ownership has established a successful renovation program, which includes the items listed below. While these upgrades have been well received, competing properties of a similar vintage in the area still boast a $180-$285 average premium to current rents at the property. Upgrades Completed by Current Ownership Include: Resurfaced Countertops Stainless Steel Appliances Upgraded Lighting & Plumbing Fixtures Vinyl Plank Flooring Two-Tone Paint in Units Refaced Cabinetry Clubhouse Refresh New Dog Park & BBQ Area Additional Upgrade Options for a New Investor: Expanded Fitness Center Larger Resident Lounge and Event Space Expanded Outdoor Space Upgraded Landscaping Upgraded Bathroom Tile Overhead Lighting/Ceiling Fans in Bedrooms Modernized Fireplace Trim Decorative Fireplace Mantles 4 THE PARK AT CANYON RIDGE

5 Unit Mix 1 Bedroom 1 Bedroom w/loft 2 Bedroom Townhome Aggregate # of Units % of Total 50% 20% 30% 100% Sq. ft. Per Unit ±630 ±880 ±978 ±785 Market Rent $1,224 $1,391 $1,530 $1,352 Per sq. ft. $1.94 $1.58 $1.56 $1.72 Assumable Financing Summary Existing Senior Loan Supplemental Loan Lender Fannie Mae Fannie Mae Total Amount $21,650,000 $12,540,000 Rate 4.34% LIBOR % I/O Exp. 7/13/2018 Exp. 7/13/2018 Amort. 30 years 30 years Maturity 7/1/2025 7/1/ THE PARK AT CANYON RIDGE

6 Denver International Airport CommonGround Golf Course Fitzsimons Medical Center Echo Park Aurora Hills Golf Course THE GARDENS ON HAVANA Aurora Town Center Buckley Air Force Base Highline by Meritage Homes Single-family homes from $440k-$500K TH E PARK AT CANYON RIDGE Country Lane Park Investment Sales Inquiries Jordan Robbins Managing Director jrobbins@hfflp.com Jeff Haag Director jhaag@hfflp.com HFF Denver th Street Suite 2540 Denver, CO Telephone Fax Disclaimer HFF has been engaged by the owner of the property \to market it [them] for sale. Information concerning the property described herein has been obtained from sources other than HFF, and neither Owner nor HFF, nor their respective equity holders, officers, 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, and HFF, its partners, officers, employees and agents 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.