Year 15 Panel: Market Overview and Case Studies

© 2012 Tax Credit Group of Marcus & Millichap Confidential - DO NOT DISTRIBUTE 2 All TCG Transactions: Representation of Sales Market RegionProp.PriceAvg. PriceUnitsAvg. Units Avg. $/Unit Avg. Year Built Avg. $/RSF Avg. TCCP Year Avg. Cap Rate CLOSED LIHTC TRANSACTIONS Midwest106$397,020,400$3,745,47511,732111$34, $ % Mountain West41$253,580,427$6,184,8885,029123$51, $ % Northeast28$164,054,805$5,859,1003,026108$55, $ % Southeast163$1,191,830,855$7,311,84627,366168$42, $ % Southwest42$328,549,380$7,822,6048,923212$37, $ % West Coast93$965,047,650$10,376,85613,632147$66, $ % Total473$3,300,083,517$6,976,92169,708147$46, $ % LISTED & MARKETING LIHTC TRANSACTIONS Midwest36$119,038,000$3,401,0863,46196$35, $ % Mountain West21$113,061,999$5,383,9052,268108$53, $ % Northeast8$80,750,000$10,093,7501,116140$118, $ % Southeast32$191,637,000$6,387,9004,586143$54, $ % Southwest16$127,600,000$7,975,0002,440153$39, $ % West Coast31$487,665,394$16,255,5134,590148$86, $ % Total144$1,119,752,393$7,998,23118,461128$62, $ %

© 2012 Tax Credit Group of Marcus & Millichap Confidential - DO NOT DISTRIBUTE 3 TCG Net Sales Proceeds Since 2010 Region ClosedListedClosed/Listed Avg. Net Proceeds Avg. Net Proceeds/Unit Midwest$2,315,254$538,223$8,132 Mountain West$2,483,795$664,800$13,644 Northeast$1,522,973$8,585,984$23,556 Southeast$2,167,268$2,910,832$14,480 Southwest$3,057,171$4,057,888$13,756 West Coast$8,634,400$6,661,967$32,669 Total$3,216,508$4,033,662$17,241

© 2012 Tax Credit Group of Marcus & Millichap Confidential - DO NOT DISTRIBUTE 4 Buyer Types & Execution Since 2011 Buyer TypeTransactions Real Estate Fund Operator49 Tax Credit Developer25 Investment Company49 Investment Partnership13 Private Individual33 Buyer ExecutionTransactions Resyndication18 Yield (Cash Flow) 106 Cash Flow to Resyndication 4

© 2012 Tax Credit Group of Marcus & Millichap Confidential - DO NOT DISTRIBUTE 5 Case Study: Plainfield, Indiana | Year 15 Transaction Highlights Close Date:January, 2012 Units:220 Price:$11,825,000 Deal Type:Fee Simple Final Year of TCCP:2012 TCCP Year Closed:15 Net Proceeds:$6,891,513 Year 0 CAP Rate:7.97% Year 1 CAP Rate:8.01% Year 0 Cash-On-Cash:15.36% Year 1 Cash-On-Cash:15.54% Qualified Contact Eligible?Yes Equity Required:$2,704,600 Primary Debt Source:Fannie Mae Primary Debt Details:New Loan | 3.77% | LTV 80% Primary Equity Type:Fund Buyer Type:Discretionary Institutional Fund Seller Type:Syndicator Buyer Motive: Cash flow buyer looking for A-/C+ multifamily assets to buy for a 7+ year hold with a projected asset-level IRR of %. Seller Motive: Replacement GP. Limited Partner looking to exit as the asset is post its Tax Credit Compliance Period and economic benefits for the Limited Partner are waning. Favorable interest environment and no prohibitively high pre-payment penalty make it a likely candidate for a disposition. Additional Details: 1995 Construction w/ Extended Use Until 2026 Growing Submarket, Expanding Employment Base LIHTC Asking Rents Below A/B Class Market Rate Assets by $100-$150 Rental Upside on 60% AMI Units After a Moderate Interior Upgrade New Financing at 3.77% on a 7-Year FNMA Loan at the Time of Closing

© 2012 Tax Credit Group of Marcus & Millichap Confidential - DO NOT DISTRIBUTE 6 Case Study: Port St. Lucie, FL | Year 11 Transaction Highlights Close Date:July, 2012 Units:284 Price:$11,600,000 Deal Type:Fee Simple Final Year of TCCP:2016 TCCP Year Closed:11 Net Proceeds: Year 0 CAP Rate:5.81% Year 1 CAP Rate:6.34% Year 0 Cash-On-Cash:4.30% Year 1 Cash-On-Cash:5.95% Qualified Contact Eligible:Yes Equity Required:$3,677,465 Primary Debt Details:No Debt Primary Equity Type:Buyer Equity Buyer Type:Private Equity Seller Type:Original Partnership Additional Details: New 2001 Construction w/ Extended Use Until 2031 Growing Submarket Nonrefundable Deposit at Execution of Contract Closed in 17 Days Buyer Motive: Operational upside as the market continues to recover. Qualified contract options allows for a re-positioning play post Year 15, i.e. potential conversion to market rate. Lack of supply on market rate side and an attractive per-unit pricing. Cash flow opportunity to achieve 15+ IRR on a 5+ year hold strategy. Seller Motive: Favorable multifamily environment in a fast-recovering Florida market. Seller faced with the decision to do a cash refinance to replace an in- place high interest debt vs. a disposition on a property that is post its tax credit flow period. Sell prior to a buildup in deferred maintenance items and in a current low interest rate environment.

Robert Sheppard Executive Director Tax Credit Group of Marcus & Millichap