1. 0 Cornerstone Research Nashville Apartment Market Analysis Dags Chen Cornerstone Real Estate Advisers LLC

2. 1 Research drives Cornerstone investment process  Strategy  Tactics Public (REIT) and private real estate research integrated Cornerstone “scrubs” industry data to remove errors and refine accuracy Cornerstone’s granular analysis is more localized than typical Live access to data and forecasts throughout Cornerstone via the Research Analyst platform Top Down Bottom Up Regional Teams Local Data Market Presence Value Research Insight Data Models Forecasts Cornerstone Research

3. 2 Economy.com’s NAICs Employment Forecast Dun & Bradstreet Establishment Data by NAICs Scrubbed supply data from F.W. Dodge Pipeline Market Occupancy & Rate/Rent Trends Construction Activity, History and Forecast Demand/Supply Forecast w/ Local Coefficients Demographic Forecasts Occupancy Forecast, Rent Growth, Market Weighting, Investment Recommendation Demand, Supply, and Local Coefficient Inputs are property-type specific Cornerstone’s Demand Model: Employment Growth by Zip Code, County, and MSA, Benchmarked to U.S. Regional Office, REIT Team and Hotel Team input Cornerstone Research

4. 3 Source: Consensus Forecasts, Cornerstone Research 2-6-2009 Weakness is pervasive and accelerating. Forecast for negative GDP through 2009, recovery hopes in 2010, employment recovery lags. 1/12/08 Forecast 6 quarters of negative growth would be the longest contraction since the Depression Forecast US GDP Growth

5. 4 Source: Bureau of Labor Research, Cornerstone Research 12-8-2008, 1-14-2009 Months to recover peak employment 19283248 Total Job Losses 1972-76: -2.1mm 1980-83: -2.8mm Current: -3.5mm through January, (another 2mm to go?) 50+ months? Steep Jobs Decline and Slow Recovery Source: Cornerstone Research

6. 5 Blackstone purchase of EOP Commercial Real Estate Transaction Activity Source: Real Capital Analytics Blackstone purchase of Hilton

7. 6 NCREIF Property Index Comparison

8. 7 The Grove at Cumberland Bluffs

9. 8 Economy.com Precis Report

10. 9 Nashville Apartment Submarkets

11. 10 Belle Meade / West End

12. 11 Downtown

13. 12 Rent Comps

14. 13 Locations of Major Employers

15. 14 Franklin/Williamson County

16. 15 Rent Comps

17. 16 Shadow Supply

18. 17 Submarket and Market Rent and Occupancy

19. 18 Rent Comps

20. 19 Proforma Cash Flow

21. 20 Proforma Cash Flow Debt ServiceYear 1Year 2Year 3Year 4Year 5 Net Operating Income2,958,2283,062,3723,166,3493,273,6883,384,494 Debt Service($1,971,427) ($2,366,761) Cash Flow$986,802$1,090,945$1,194,923$906,927$1,017,733 Debt Service Coverage Ratio1.51.551.611.381.43 All Cash Yield6.73%6.97%7.20%7.45%7.70% Cash On Cash Leveraged Yield8.98%9.93%10.87%8.25%9.26% Price$43,956,000 LTV %75% Loan Amount$32,967,000 Interest Rate*:5.98% Amortization: 3 030 Term: 1 010 First 36 Months (Interest Only)$164,286 Months 37 - 120:$197,230

22. 21 Commercial Mortgage Spreads (as of 2/11/2009) Source: DTZ Rockwood Financial

23. 22 Source: Axiometrics U.S. Nashville Historical Rent Growth Downtown West End

24. 23 Source: Axiometrics, BLS Rent Growth Linked to Job Growth Nashville Employment Growth

25. 24 Source: Axiometrics U.S. Nashville Axiometrics Vacancy History Downtown West End