1. DOWNEY PARK APARTMENTS TROJAN PARTNERS ACQUISITION DOWNEY, CALIFORNIA * 104 APARTMENT HOMES $11,000,000

2. PROPERTY PROFILE

3. PROPERTY FINANCES

4. LOCATION MAP VIEWSATELLITE VIEW

5. Centrally located amid three submarkets South Bay East Los Angeles North Orange County Jobs: 6,780,000 within twenty-mile radius Unemployment Rate: CA (12.3%) Unemployment Rate: Downey (9.8%) Employment Projection: 2015: 52,588 2010: 48,221 2000: 44,197 EMPLOYMENT

6. U.S. Census Bureau: LA has second largest population in the United States Median Income: $59,955 Median Age: 31 Median House Value: $452,000 Average Household Size: 3.1 people DEMOGRAPHICS

7. TRAVEL TIME TO WORK AVERAGE COMMUTE: 25 MINUTES75% DRIVE ALONE

8. TRANSACTION SUMMARY Purchase Price: $11,000,000 Acquisition Cost: $330,000 Price Per Unit: $105,769 Total Units: 104 Price Per Square Foot: $91 Livable Square Feet: 120,700 Avg. Square Feet Per Home: 1,161

9. High Entry Cap Rate Valuation 10% Year one Cash on Cash Return >14% Value Add Upside Cap Rate reduction 10% expected rent increase Oversized Apartment Homes: 37% larger than East LA submarket Low Interest Rate Financing RATIONALE

10. DOWNEY AVERAGE RENTS AVERAGE RENT 1X1 UNIT AVERAGE RENT 2X2 UNIT

11. ASSUMPTIONS Purchase Price: $11,000,000 Acquisition Cost: $330,000 Loan Fee: $71,500 LTV%: 65% Loan Amount: $7,150,000 Equity: 3,850,000 Interest Rate: 5% # Units: 104 General Vacancy: 5% Concessions: 4.17% Non-Rev Units: 2% Other Income: $63,267 Capital Reserves: $300 Entry Cap: 10% Exit Cap: 7% Value Add Cost: $700,000 # Units Complete/yr: 24 Renovation Term: 51 months Rental Increase: 10% Hold Period: 5 yrs. Hurtle Rate: 6%

12. PROMOTE SPLIT Trojan Partners Initial investment: $637,725 15% of Equity $4,251,500 Preference Rate: 6% Promote Split: 70 Equity / 30 Sponsor Acquisition Fee Charged: $110,000 Fee covers operating overhead $10,000 bonuses awarded to each partner

13. PRO-FORMA VALUE ADD Going in cap 10% Exit cap 7% Renovation cost $700,000 or $6,000 a door Property leveraged IRR (65% LTV) 41% Sponsor leveraged IRR (65% LTV) 62% 5 year sale profit $15,099,814 Returns (5 year hold with Value Add)

14. JUSTIFICATION SALES COMPARABLES REPORT Complex# UnitsAgeSales PriceCap RateClosed Downey Park1041964N/A Cypress Village 881964$15,000,0005.8%2010 Pinewood1241972$20,400,0004.8%2010 Mariposa2861970$43,000,0004.8%2010

15. VALUE ADD CAPITAL EXPENDITURES

16. THE CAPITAL STACK Sponsor: $637,725 Equity: $3,613,775 Lender: $7,150,000 Total Property Cost: $11,401,500 (Property + Acquisition Cost + Loan Fee)

17. DEBT COVERAGE RATIO ASSUMING 3% RENT GROWTH & 2% EXPENSE GROWTH Year 1: 2.85 Year 2: 3.11 Year 3: 3.37 Year 4: 3.64 Year 5: 4.15 ASSUMING RENT FALLS 50% Year 1: 1.42 Year 2: 1.55 Year 3: 1.69 Year 4: 1.82 Year 5: 2.07 Loan Terms: $7,150,000, 65% LTV, 5% FRM, 10yr., Interest Only

18. CASH ON CASH RETURN PROPERTY CC ON Year 1: 14.81% Year 2: 16.97% Year 3: 19.16% Year 4: 21.38% Year 5: 382.85% SPONSOR CC Year 1: 19.43% Year 2: 23.74% Year 3: 28.12% Year 4: 32.56% Year 5: 755.49% SPONSOR CC IF RENTS DROP 50% Year 1: 9.71% Year 2: 11.87% Year 3: 14.06% Year 4: 16.28%

19. 5 YEAR VALUE ADD SCENARIO Year 0: -$637,725 0 Year 1: $123,886 19.43% Year 2: $151,392 23.74% Year 3: $179,298 28.12% Year 4: $207,616 32.56% Year 5: $4,817,965 755.49% CASH FLOWS CASH ON CASH

20. EXIT CAP COMPARISON 7 CAP Sale: $22,337,377 Net: $15,099,814 IRR: 41% 8 CAP Sale: $19,545,205 Net: $12,307,642 IRR: 37% 9 CAP 9 CAP Sale: $17,373,515 Net: $10,135,953 IRR: 33% 10 Cap Sale: $15,636,164 Net: $8,398,601 IRR: 29% Assuming 5 Year hold @ 3% Growth

21. 5 YEAR PRO-FORMA