Close Feb9 112 units 2015 YOC 5yr hold 18%IRR 2x eq 7%coc Houston

[Joseph Bramante]

•Overview: TriArc is under contract for a 112-unit Class A Workforce Housing community that was constructed in 2015 and located near another property that TriArc owns allowing for significant operational efficiencies. The property is under contract for $11M ($98k/dr) and the all-in acquisition price is $11.7M of which $3.5M will be equity.

•TriArc Properties: TriArc Properties is a full-service investment management firm focused on the acquisition of opportunistic multifamily real estate assets with untapped or unrealized value that delivers market leading returns to its investors.

•The Property: Smart Living At Stuebner Apartments is a garden style community that benefits from being well located on the northern boundary of Independence Heights and west of I-45.

–Operational Synergies: TriArc will be able to operate the two properties as a single 250 unit property, significantly reducing the payroll. TriArc will also place brochures and marketing materials in the offices of each, cross marketing the properties. The properties will also be sold together attracting intuitional investors

–Value Creation: The property lacks any exterior amenities. TriArc will lavishly update the 8,000 sf courtyard with a fire pit, outdoor kitchen, lounging area and water feature. TriArc will add yards to the first floor units and convert the existing office back into a rentable unit.

–Submarket Experience: TriArc has operated numerous properties in the submarket and recently completed a $7k/dr renovation on the neighboring property to increase rents $120.

•The Opportunity: TriArc is offering the opportunity invest in a newly built property at below replacement cost with significantly less risk than older properties. An investment of $100k is equivalent to 2.9% partnership interest in the property

–Target Returns: The estimated IRR is 17.9% with an equity multiple of 2.06x

–Distributions: An estimated 8-9% annually during the first 3 years of IO then 4% and sold for 176%

–Timing: The estimated closing date is Feb 9th, 2019 and exit date is Jan 31st, 2024