PARK FOREST A MULTIFAMILY INVESTMENT OPPORTUNITY PRESENTED BY

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Candace Shields
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1 FAYETTEVILLE NORTH CAROLINA A MULTIFAMILY INVESTMENT OPPORTUNITY PRESENTED BY PARK FOREST A MULTIFAMILY INVESTMENT OPPORTUNITY PRESENTED BY

2 FORT BRAGG & POPE FIELD GENERAL DYNAMICS RAYTHEON NORTHROP GRUMANN GOODYEAR TIRE & RUBBER PLANT: 2,000+ Jobs SAIC LOCKHEED MARTIN SYKES ENTERPRISES: 700+ Jobs All American Expy FAYETTEVILLE ECONOMIC DIAMOND 295 FAYETTEVILLE STATE UNIVERSITY: 1,000+ JOBS 95 FAYETTEVILLE VA MEDICAL CENTER 401 NEW FAYETTEVILLE VA HEALTH CARE CENTER: 1,000 New Jobs Fayetteville Rd Skibo Rd Murchison Rd RETAIL CORRIDOR 5.7M SF DOWNTOWN FAYETTEVILLE 14,000 Jobs Clinton Rd BOEING FAYETTEVILLE REGIONAL AIRPORT 2 CAPE FEAR VALLEY MEDICAL CENTER: 1,700+ Jobs EATON CORPORATION: 500+ Jobs PUROLATOR FILTERS PLANT: 1,000+ Jobs

JLL is pleased to present Chason Ridge (the Property ), an exceptional opportunity to acquire one of Fayetteville s top performers located in the heart of the city s burgeoning 5.

3 JLL is pleased to present Chason Ridge (the Property ), an exceptional opportunity to acquire one of Fayetteville s top performers located in the heart of the city s burgeoning 5.7MSF retail corridor along Skibo Road. Built in 1994, this 252-unit asset equips investors with the ability to drive rents due to a limited new construction pipeline and recent new deliveries which have elevated the rent ceiling by $300-$400. The Property is tremendously walkable to over 1.2MSF of retail including a Target and Best Buy at the Property s front door driving above market occupancy throughout its history. Chason Ridge is a prime value-add target that is perfectly positioned as a pivot point between thriving Downtown Fayetteville and the world s largest military base Fort Bragg. Chason Ridge is uniquely positioned to become the luxury-value provider within the southwest Fayetteville submarket. UNIT MIX AND EFFECTIVE RENT SUMMARY Unit Type No. of Units Unit SF Market Rent Effective Rent Effective Rent/SF 1BR - 1BA $640 $604 $0.74 1BR - 1BA $694 $630 $0.74 2BR - 2BA 98 1,026 $735 $684 $0.67 2BR - 2BA 66 1,105 $738 $702 $0.64 3BR - 2BA 32 1,325 $836 $809 $0.61 Totals / Averages 252 1,041 $733 $689 $0.66 *Based on 2/18/15 Rent Roll Buttressed by the behemoth that is Fort Bragg, Fayetteville is one of the most stable economies in the US. Fort Bragg and Pope Air Force base contribute an estimated $4.5 billion in annual economic impact to the community. Today Fort Bragg is home to 59,000+ military personnel, 12,000+ civilian employees and 23,000+ family members including the XVIII Airborne Corps, 82nd Airborne Division, US Army Special Operations Command, and the Army s Golden Knights. In July 2014, Fayetteville was deemed the 3rd most recession-recovered of the 150 largest U.S. Cities by WalletHub. The stable nature of Fayetteville s economy coupled with higher, double-digit cash yields for this unparalleled location in the core of Fayetteville s prime retail corridor make Chason Ridge the premier acquisition opportunity. OFFERING HIGHLIGHTS: Superior Connectivity and Visibility - Signage and visibility on Skibo (40K cars daily) in heart of 5.7M retail corridor and centrally located within Fayetteville s primary job corridor. Unique Walkability to High End Retail - Walkable to 1.2MSF of retail including Target, Starbucks, Best Buy and grocery. High Occupancy Drives Yield - Historically above market occupancy primes asset for organic rent growth. Below Market Rents Offer Rental Realignment Upside - Improving curb appeal achieves rent parity with like-type peers. Significant Lift in Rent Ceiling - New nearby Class A properties provide rental cushion of $300 to $400. Attractive Acquisition Basis - Opportunity to acquire top of market location for significantly below replacement cost. 3

4 FT. BRAGG CROSS CREEK PLAZA CROSS CREEK MALL Skibo Rd All American Expy DOWNTOWN HIGH-QUALITY RETAIL DRIVES GROWTH Unparalleled location in the core of Fayetteville s Prime Retail Corridor Cliffdale Rd FAYETTEVILLE PAVILLION Within 2-miles of over 5.7MSF of retail Walkable to Target/Grocery, Best Buy, and over 1.2 MSF of retail Unique Signage and visibility on Skibo Road/401 Bypass, the Primary Retail Corridor, which sees over 40,000 cars/day Skibo Rd 4

POPE FIELD EXPANDING FORT BRAGG AND POPE FIELD FUEL ECONOMIC GROWTH besides the Pentagon.

Army s Airborne and Special Operations Forces, Chason Ridge provides convenient, affordable, high quality residences for military and civilian personnel who prefer to be walkable to restaurants and

5 POPE FIELD EXPANDING FORT BRAGG AND POPE FIELD FUEL ECONOMIC GROWTH besides the Pentagon. After the BRAC Commission began consolidating bases, Fort Bragg has been benefitting from a continued increase in personnel as consolidation continues and other bases close. NC VETERANS PARK MEMORIAL 5 Just moments away from Fort Bragg, the largest military installation in the world and home to the U.S. Army s Airborne and Special Operations Forces, Chason Ridge provides convenient, affordable, high quality residences for military and civilian personnel who prefer to be walkable to restaurants and shopping while remaining close to the base. Originally developed in 1918, Fort Bragg in conjunction with Pope Field continues to represent a large governmental investment as it employs 12,000+ civilians and contractors, 59,000+ active-duty troops, and more generals than any other base These two installations account for an annual regional economic impact of $4.5 billion, and its size and economic impact have made Fayetteville a highly-coveted destination for growth in other sectors. In recent years, billions of dollars have been spent to improve infrastructure across the MSA, including new roads, bridges, and other major projects. This focus has attracted the attention of the private sector and has created increased interest and investment in the area from blue-chip. Also, public investments in education have been made in order to develop a STEM focused workforce.

6 ASSET PRIMED FOR ORGANIC GROWTH With prominent placement within Fayetteville s booming retail corridor, limited new supply, and centrality to the city s major employment centers, Chason Ridge has displayed consistent, above market occupancy since This stability, relative to the market, is a function of the Property s diverse resident base. A majority of assets in the market have a much higher percentage of military related residents while Chason Ridge has benefited from residents who work at several of Fayetteville s major employers. Such consistent occupancy is the foundation a new owner needs to grow rents organically. 92% Average Occupancy over the Last 2 Years 2,500 Permit Filings & Projected Deliveries 8.64%+ Higher Occupancy Than Market Occupancy 2,000 Limited New Deliveries in the Next 5 Years Chason Ridge represents a strong, long-term investment centered on surrounding demographics that have fostered a robust and consistent historical economic performance. The next owner is uniquely equipped with the advantage of a best-in-market location coupled with forecasted decreases in deliveries through 2019, allowing for a rebranding strategy focused around these key differentiators. By adopting the subsequent strategies presented, investors can build off of the in place foundation to create strong organic growth and capture the luxury-value end of the market that no other property has yet claimed. Historical Occupancy of Chason Ridge vs Fayetteville Market 100.0% 1,500 1, Permit Filings Projected Deliveries 95.0% 90.0% 85.0% 80.0% 75.0% Q Q Q Q Q Q Q Q Chason Ridge Fayetteville 6

BELOW MARKET RENTS OFFER RENTAL REALIGNMENT UPSIDE Chason Ridge represents a high-quality asset with a strategic location that surpasses peers in the submarket.

7 BELOW MARKET RENTS OFFER RENTAL REALIGNMENT UPSIDE Chason Ridge represents a high-quality asset with a strategic location that surpasses peers in the submarket. However, for reasons explained in the offering memorandum, the Property s rents lag comparable properties in the submarket by a substantial margin. As reflected in the adjacent graphs, competitors with like-quality finish levels have nearly a $124 rent gap above Chason Ridge. As compared using like-type floor-plans, these competing properties exceed the rents of Chason Ridge by an average of: $83 for a one-bedroom unit, $141 for a two-bedroom unit, and $108 for a three-bedroom unit. By correcting the misalignment with the strategies and ideas presented on the following pages, Chason Ridge would stand to achieve $374,736 in additional annual income. FLOORPLAN # OF UNITS RENT DELTA/UNIT TOTAL POTENTIAL INCOME 1BR 56 $83 $55,776 2BR 164 $141 $277,488 3BR 32 $108 $41,472 Weighted Avg/Total 252 $124 $374,736 $800 $750 $700 $650 $600 $550 $500 $900 $850 $800 $750 $700 $650 $600 1BR Like-Type Effective Rent Comparison +$83 Average Rent Spread $604 $613 $689 $779 Chason Ridge Crescent Commons Legacy at Cross Creek The Regency 2BR Like-Type Effective Rent Comparison +$141 Average Rent Spread $684 $770 $778 $869 Chason Ridge Crescent Commons Legacy at Cross Creek The Regency $1,050 $1,000 3BR Like-Type Effective Rent Comparison +$108 Average Rent Spread $950 $900 $850 $800 $925 $998 7 $750 $700 $809 $829 Chason Ridge Crescent Commons Legacy at Cross Creek The Regency

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CHASON RIDGE 600 Scotia Lane Fayetteville, NC 28314 DIRECTIONS From Fayetteville Regional Airport: Head east on Airport Rd. for 0.8 miles. Turn right onto I-95 BUS N/ US-301 N and continue for 1.

9 CHASON RIDGE 600 Scotia Lane Fayetteville, NC DIRECTIONS From Fayetteville Regional Airport: Head east on Airport Rd. for 0.8 miles. Turn right onto I-95 BUS N/ US-301 N and continue for 1.4 miles before turning left onto Owen Dr. Continue on Owen Dr. for 3 miles until it becomes All American Expressway N. Continue for 1.7 miles and take the Cliffdale Rd. exit and turn left onto NC-1400/ Cliffdale Rd. In 1 mile, turn left onto Skibo Rd for 0.3 miles and turn right onto Chason Ridge Dr. The Property will be straight ahead. EXCLUSIVELY PRESENTED BY JONES LANG LASALLE AMERICAS, INC Congress Street Ste. 300 Charlotte, NC FOR INFORMATION PLEASE CONTACT Andrea Howard Senior Vice President andrea.howard@am.jll.com David Gutting Managing Director david.gutting@am.jll.com Derrick Bloom Managing Director derrick.bloom@am.jll.com Join us on Twitter & visit Disclaimer Neither the Owner nor Jones Lang LaSalle nor any of their respective officers, agents or principals has made or will make any representations or warranties, expressed or implied as to the accuracy or completeness of the Flyer or any of the contents, and no legal commitment or obligation shall arise by reason of this Flyer or the Contents. By accepting or accessing information applicable to the Property, the user agrees that the owner of the Property, including its affiliates, agents (collectively, the Owner ) or Jones Lang LaSalle accept no responsibility for errors or omissions in any such Property related information, whether now or hereafter obtained (collectively, the Property Information ). The Property Information is subject to errors, omissions, changes and other conditions, withdrawal without notice, and to any special listing conditions now or hereafter imposed, and is not to be relied upon without Owner s prior written permission. Owner accepts no, and expressly disclaims any, duty to update or revise the Property Information even if it becomes aware of an inaccuracy and/or omission. 9

HISTORIC DOWNTOWN BUILDING FOR SALE 120 Gillespie St, Fayetteville, NC 28301

150 N. McPherson Church Rd Fayetteville, NC 28303 www.grantmurrayre.com RETAIL PROPERTY FOR SALE HISTORIC DOWNTOWN BUILDING FOR SALE 120 Gillespie St, Fayetteville, NC 28301 EXECUTIVE SUMMARY OFFERING