80 Unit Multifamily Investment Opportunity

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CARROLL GARDENS MACON, GEORGIA 80 Unit Multifamily Investment Opportunity EXECUTIVE SUMMARY (Condensed Version) 365 Rogers Avenue & 520 Baxter Avenue,

1 CARROLL GARDENS MACON, GEORGIA 80 Unit Multifamily Investment Opportunity EXECUTIVE SUMMARY (Condensed Version) 365 Rogers Avenue & 520 Baxter Avenue, Macon GA This is not an offer to sell or a solicitation of any offer to buy any securities. Offers are made only by prospectus or other offering materials.

2 ABOUT US

3 Altor Realty Group LLC, [ARG] is pleased to present an investment opportunity in Carroll Gardens Townhomes, LLC. ARG is a privately held real estate investment company focused on providing our private investors a variety of real estate investment opportunities tailored to meet their financial goals and objectives. We employ a feet on the ground approach to acquiring, managing and repositioning the investment properties. Our investors are kept apprised of the investment performance through regularly scheduled meetings with the asset manager. SPONSOR TEAM Rosemarie Torla began her career twentyfive years ago at Lehman Management Company and accumulated 18 years of wealth and investment management services before moving on to become the Director of Operations and Technology at KLS Professional Advisors Group. In 2004 she founded Lustrin Financial, LLC, a Registered Investment Advisory firm. Years later as a Senior Business and Financial Analyst with a large privately held financial services Company, she supported the Bloomberg Family and Bloomberg Foundation. She is a Certified Project Manager in good standing with the Project Management Institute. Rosemarie has been investing in real estate since 2004, and established Altor Realty Group in She is currently studying to become a Certified Commercial Real Estate Appraiser. AppleTree Developers, LLC was founded by Simeon Pappas and Luz Rivera, in Combined they have 20 years of experience in property management, renovation of distressed assets, analysis and disposition. They have repositioned more than $4million of real estate assets and are in the final phase of completing a $2million renovation on a 68 unit community in Macon, Georgia. Simeon has a Bachelor s of Engineering from New York Institute of Technology and a Master s in Business Administration from Long Island University. As a Principal of Apple Tree Developers, Luz Rivera manages the property management division and is the driving force behind the Companies success. Prior to AppleTree Developers, Luz worked as an executive assistant and office manager for Urban America, an urban development company that specialized in redevelopment of distressed commercial neighborhoods throughout the US. Jose Gonzalez founded JLG Realty solutions in 2012, a private real estate investment firm focused on the acquisition of income producing multifamily real estate. Prior to JLG Realty Solutions Jose amassed 18 years of experience as a Compliance Officer at several international Wall Street firms. He personally manages $1 million and is invested in $17million of multifamily real estate investments in Ohio, Florida and Georgia.

4 ADVISORS URS Capital Partners, LLC & the Elite Partner Network In the last 5 years, Chris and Lisa Urso have sponsored and invested in more than 1,000 residential and multifamily redevelopment projects valued at $70 million, actively investing in multiple states along the East Coast, South East and Midwest. As the Leaders and Founders of the Elite training program they have mentored more than 100 active members who have successfully acquired and repositioned $44 million in multifamily real estate assets in the past 3 years. URS Capital partners have been retained to provide advice and consulting services to Altor Realty and the Carroll Gardens LLC members on the evaluation, financing and management of the Carroll Gardens acquisition. Strategic Management Partners, Property Management SMP manages more than 50k units in 20 states located throughout the South Eastern and lower MidWestern section of the United States. They are the managers for the Team s existing Macon, Georgia property called Cobble Hill. They specialize in turnarounds and stabilizing assets, increasing profitability primarily for B and C class apartment communities. Wagner & Zwerman LLP, Accounting: The Elite Partners have utilized Wagner Zwerman [WZ] almost exclusively on all of our multifamily investment deals. In addition to being a fullfledged accounting firm, they provide business consulting services with insights into the current and constantly changing tax laws, equipping their clients to be appropriately prepared in every way. Chris H. Atkinson Lawyer Chris practices in the areas of commercial real estate development, water & reservoir law, economic development and local government law. He devotes a significant portion of his practice to organizations involved in the development, construction and financing of commercial properties, as well as the sale and acquisition of all types of real estate developments. Prior to forming Atkinson Ferguson, LLC, Chris practiced for many years with a major regional law firm in Atlanta, Georgia. From 2005 to 2007 he served as CoChair of the Ethics and Professionalism Committee of the Young Lawyers Division of the State Bar of Georgia. Important Note: Similar Project Recently Completed in Macon AppleTree Developers recently completed an extensive renovation with a $2million budget, on a 68 unit community, about 10 miles from the investment properties. The project, now known as Cobble Hill Apartments, took about 11 months to complete and was characterized as a complete gut job. The property was purchased at 39% occupancy and is now operating at 70% occupancy. Our partners, Simeon Pappas and Luz Rivera, relocated to Macon to manage the construction project, marketing and rebranding campaign and rebranding. They applied energy efficient measures wherever feasible and more importantly, established successful working relationships with the construction management, building suppliers and local businesses. We are fortunate to be able to leverage their expertise and relationships for the renovations at Carroll Gardens.

5 DEAL SUMMARY & HIGHLIGHTS Carroll Gardens, LLC The investment property consists of two complexes currently known as Briarwood and Regency Townhomes, located in Macon Georgia. The investment will be managed through an operating LLC called Carroll Gardens, LLC. I. STABLE ASSET WITH IN PLACE RETURNS Briarwood and Regency Townhomes are two stabilized assets highlighted by average leased rents of $477 and a current occupancy of 89%. II. EXCELLENT VALUEADD OPPORTUNITY The properties were poorly managed and minimally maintained. At an average rent of $477 per unit, they are well below the median rent of $535 for similar properties in the surrounding areas. III. RECENT CAPITAL IMPROVEMENTS The current ownership recently completed $146,500 in capital improvements focused on asset preservation and designed to enable a sale. Improvements included resurfaced parking lots, exterior paint and landscaping. Four units were upgraded and successfully tested the market for expected rent increases. IV. DIVERSE & GROWING ECONOMY The properties are less than 20 minutes away from over 15,350 jobs offered by Macon s leading employers. The area s economy continues to grow as several companies enter and continue to invest in the Macon area. The unemployment rate has dropped 50 basis points from September 2014 to its current level of 6.8% as of February MAJOR EMPLOYERS: Medical Center of Central Georgia: 6200 GEICO: 5000 Bibb County Board of Education: 3700 Coliseum Health System: 1400 City of Macon: 1142 Mercer University: 900 Bibb County: 780 YKK: 750 WalMart Super Stores: 740 US Postal Service: 600 The Boeing Company: 500 IKON Office & Financial Solutions: 850 First Quality Packaging: 500 Armstrong World Industries: 454 Macon, Georgia Bibb County MSA One of Macon's key strengths is its strategic location in the heart of Georgia. At the crossroads of interstates 75 and 16, and just 75 minutes south of Atlanta, Macon has become an attractive location for businesses. A population of over 390,000 in a 30 mile radius; 4 major seaports within 4 hours truck travel time; international airfreight facilities only 75 minutes away; 2 rail roads and the largest rail switching center on the East coast make Macon an ideal location for businesses. More information on the growing economy of Macon, Georgia is provided in the Appendix.

Investment Property Details Briarwood: Garden & Townhomes 2 Stories Washer / Dryer connections Central Heat & Air Patio or Porch Ample Parking Wood Frame / Poured Concrete Exterior: Brick Veneer &

6 Investment Property Details Briarwood: Garden & Townhomes 2 Stories Washer / Dryer connections Central Heat & Air Patio or Porch Ample Parking Wood Frame / Poured Concrete Exterior: Brick Veneer & Masonite Easy Access to Interstate 75 & Briarwood Built in 1971 Four [2 story] buildings, 36 units Regency Built in 1973 Five [2 story] buildings, 44 units 4 1B 8 1B 1.5B 28 2B 1B 32 2B 1.5B 4 2B 1B* 4 3B 1.5B Current Occupancy 89% Average rent $477 per unit Gross Potential Rent $458,016 Net Operating Income $131, Acres Rentable space 76,800 sf. Avg. sf per unit: 1,000 Cap Rate at Purchase 8% Unit Inspections Completed 7/30/15: Regency Townhomes: We walked through all 80 units and are comfortable with the renovation budget that we are projecting. Six units require a complete renovation which will be completed within the first 2 months of the renovation phase, providing additional income within the first quarter. Washer / Dryer connections Vaulted ceilings Private Patios Ample Parking Access to Premier Retail, Int. 75 & 16 Wood Frame / Poured Concrete Exterior: Brick Veneer & Masonite Our General Contractor has significant experience in renovating these properties and employs a variety of cost saving options such as enamel coating on tiles and refurbishing cabinets and vanities, rather than replacing them. The first floor of every unit will be finished with vinyl wood style planks. The roofs were recently replaced and the exteriors were painted and pointed Landscaping will be refreshed and security cameras and lighting will be added

7 REGENCY BRIARWOOD BEFORE AFTER: Painted cabinets and quartz counter tops. This is a photo taken at another property currently being renovated by our GC. This property is a 1962 vintage.

8 Business Plan: Our research on comparable apartments in the immediate area indicates we can raise rent rates by 15%, both in year one going in to year two, and year two going into year three. The first raise will be the result of managing vacancies more effectively, repositioning the tenant base and bringing the property in line with the current market rates. The second increase will be a result of upgrades to the units. In addition the Macon market is projected to experience 7.9% rent growth the next four years. We used modest estimates of 2% growth after the planned increases in year one and two. Additional streams of income such as pet fees, water charges and laundry fees are available to us but not included in the projections. During our due diligence visit, we toured several comparable properties in the immediate area that were all selling or recently sold for $30k+ per unit, compared to our cost of $21k per unit. Comparables that were updated were demanding between $40k and $45k per unit at sale. Our five year projection includes a sale in year five at $48k per unit. Depending on the terms of the loan we acquire, we may refinance in year three to a traditional mortgage. Projections indicate a sale of the property in year 5 after stabilizing occupancy at 90% or more for a steady 3 years. Comparable information on rents and sales are provided in the Appendix

9 FINANCIALS

10 CAPITAL EX BUDGET Capital Improvements/ Reserves Interior Renovations Exterior Renovations Additional (see below) $ $ $ 429, , , Subtotal (planned CI) $ 599, Interest/Investor Reserve Reserves Subtotal Reserves $ Per Unit Total $ 599, $ 7, Interior Renovations Units Avg Cost Per Total Down units $ Hard Turns : 30 $ Baths vanities, fixutres, baths 30 $ 1, $ 52, Plumbing 30 $ 1, $ 42, Kitchen cabinets, countertops, fixutres 30 $ 2, $ 60, Medium Turn $ Light Turn 30 $ 4, $ 135, Windows $ Pest $ New Appliances 30 $ 1, $ 54, New AC Units $ Flooring 30 $ 2, $ 60, Stair Cases $ Common Area (breezeways) $ Other (fill in) 30 $ HVAC, Labor Misc 30 $ $ 25, Total Interior Summary 150 $ 2, $ 429, Exterior Renovations Units Cost Per Total Exterior Paint /Lighting $ 35, Total Exterior Summary $ 35, Additonal Units Cost Per Total Electrical $ Plumbing $ Drainage $ Retaning wall $ HVAC maintenance 30 $ Boiler repair/ replacement $ Move Laundry rooms $ 1, $ 45, Construction Management $ 90, Total Additional Summary 30 $ 2, $ 135, In order to garner the highest and best use of the properties, given the location and demographics, modest unit upgrades and improvements are necessary. Not every unit will require the upgrades/improvements and there are currently 9 units that we re assuming will require a significant upgrade. The proposed upgrades will raise the properties to perform above the nearest comparable rental, without being unnecessarily lavish. Our General Contractor specializes in refurbishing existing cabinets and bathrooms and reducing costs. The improvements will mimic the rebuild that was completed at The Cobble Hill Apartments, managed by two of our Sponsors. Source & Use of Funds: % of % of Sources Amount Capitalization Uses Amount Capitalization Debt 1,840,000 75% Purchase Price 1,720,000 70% Equity 614,000 25% Renovation 599,000 24% 15,000 Sponsor Fee 75,000 3% Reserves 15,000 1% Closing Costs 60,000 2% Total 2,469,000 2,469,000

11 Proforma Proforma Five Year Projections Year 1 Year 2 Year 3 Year 4 Year 5 Operating Assumptions Rental Increase Projections 15% 15% 2% 2% Vacancy Rate 10% 10% 10% 10% 10% Delinquency/Lease Loss 2% 2% 2% 2% 2% Other Income Increase 1% 1% 1% 1% Operating Expense Projections 2% 2% 2% 2% Operating Revenues $ $ $ $ Gross Potential Ren $ 477 $ 458,016 $ 526,718 $ 605,726 $ 617,841 $ 630,197 Vacancy Loss $ (45,802) $ (52,672) $ (60,573) $ (61,784) $ (63,020) Delinquency/Lease Loss $ (9,160) $ (10,534) $ (12,115) $ (12,357) $ (12,604) Net Rental Income $ 403,054 $ 463,512 $ 533,039 $ 543,700 $ 554,574 RUBS $ $ $ $ $ Other Income $ 12,000 $ 12,120 $ 12,241 $ 12,364 $ 12,487 Gross Income $ 415,054 $ 475,632 $ 545,280 $ 556,063 $ 567,061 Total Operating Costs $ 229,206 $ 220,893 $ 224,951 $ 229,090 $ 233,312 Expense Ratio 55.2% 46.4% 41.3% 41.2% 41.1% Expenses Per Unit 2,865 2,761 2,812 2,864 2,916 Net Operating Income $ 185, , , , ,749 Annual Reserve 300 $ 300 $ 24,000 $ 24,000 $ 24,000 $ 24,000 NOI AFTER RESERVES $ 185,548 $ 230,739 $ 296,329 $ 302,973 $ 309,749 Income & Financing Assumptions: 15% increases in rent year 1 into year 2, and year 2 into year 3; 2% each year thereafter Expense ratio 55% to 41%, declining after ramp up Renovation Budget $600k, $7.5 per unit Approx. Initial Loan: 1.840M [75% 5% rate Capital raise $617,000 First Year s reserve included in Cap Ex budget Conservatively estimating 10% vacancy in financial projections Managing Expenses: Having recently managed the $2million renovation at Cobble Hill, Simeon and Luz are uniquely positioned to leverage existing relationships with building and appliance suppliers, local agencies, contractors and laborers. They will temporarily relocate to be onsite managing the renovation project and controlling costs. Debt Service $92,000 $92,000 $188,568 $188,568 $188,568 DSCR Cash on Cash Return $ 93,548 $ 138,739 $ 107,761 $ 114,405 $ 1,273, % 22.60% 17.55% 18.63% %

12 SAMPLE INVESTOR RETURNS Investors will receive 70% of the cash return in years 1 through 5. The exit plan is to sell in Year 5, depending on market conditions and investor sentiment. Investors earn 80% of equity at sale. Year 5 sale: 80% of equity at sale = 922,220 Year 5 Sale Price $ 3,871,864 Cost of Sale $ (193,593) Mortgage Payoff $ (2,525,496) Sale Proceeds $ 1,152,774 Potential Sale Year Returns on Investment Projected Investment Returns Potential Sale Year 5 Investment Returns Year 1 Year 2 Year 3 Year 4 Year 5 Investor Earns 80% of Equity at Sale Investor earns 70% of cash Year 1 5 Total ROI Annualized Cash on Cash 65,484 97,117 75,433 80,084 84, , % 13.13% Cash on Cash Ret % 15.82% 12.29% 13.04% 13.82% Return Investors Principal Proceeds from Sale (614,000) 922, % 6.78% 711, % 23.16% Sample Investor Returns: Investor Scenarios: Sample Investment Amount Year 1 Cash Flow Year 2 Cash Flow Year 3 Cash Flow Year 4 Cash flow Year 5 Cash Flow Total Cash Flows Equity Split at Sale Total Return Invest. ROI Annualized $ 150, , , , , , , , , (150,000) % 23.16% $ 200, , , , , , , , , (200,000) % 23.16% $ 75, , , , , , , , , (75,000) % 23.16% $ 125, , , , , , , , , (125,000) % 23.16% $ 14, , , , , , , , , (14,000) % 23.16%

13 FOR MORE INFORMATION ON THIS OPPORTUNITY PLEASE CONTACT THE SPONSORS Rosemarie Torla Jose Gonzalez Cell: Cell: Simeon Pappas Luz Rivera Cell: Cell: Please contact Rosemarie or Simeon for more information and details on comparative properties, the emerging Macon, Georgia market and current capital projects in the area. We are open to discussing other investment options for investors that make a substantial commitment. This Preliminary Investment Proposal was prepared by the sponsors of Carroll Gardens, LLC for use by a limited number of prospective investors. The information contained herein is highly confidential and should not be distributed to any party without the sponsors direct authorization. No representation is made by the sponsors as to the accuracy or completeness of the information contained herein, and nothing contained herein should be relied upon as a promise or representation as to the future performance of the property. Although, the information is believed to be accurate, the sponsor disclaims any responsibility for inaccuracies and expects prospective investors to exercise independent due diligence in evaluating the investment. The sponsors reserve the right, at its sole discretion, to withdraw from this investment and/or to terminate discussions with any party regarding this investment at any time with or without notice.

$150,000 PRICE REDUCTION

$150,000 PRICE REDUCTION 5.08% cap rate on projected rents FOR SALE 222 E. Carrillo Street, Suite 101, Santa Barbara, California 93101 HayesCommercial.com Property Overview Eight-unit apartment located