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COMMERCIAL REALTY RESOURCES COMPANYMULITFAMILY INVESTMENT SERVICESArkansasOklahomaKansasO k l a h o m a C i t y, O KSummerscape Apartments3250 SE 44th StreetMike [email protected] [email protected] rc.usProviding professional apartment brokerage and marketing services for over 25 years

Summerscape ApartmentsTable of Contents1. Summerscape Property Highlights Map and PhotosProperty InformationUnit SummaryFloor Plans2. Purchase Price and Terms Purchase Price and Terms3. Income/Expense Statement Income & Expense Statement4. Rent & Sale Comparables Rent Comparables Sale Comparables5. Oklahoma City Overview Oklahoma City Overview6. Oklahoma Broker Relationship Act Oklahoma Broker Relationship ActThe information included herein is from reliable sources, but is notguaranteed and is offered subject to errors and omissions.www.crrc.us

1Summerscape Property Highlightswww.crrc.us

COMMERCIAL REALTY RESOURCES COMPANYMULITFAMILY INVESTMENT SERVICESwww.crrc.us

COMMERCIAL REALTY RESOURCES COMPANYMULITFAMILY INVESTMENT SERVICESwww.crrc.us

COMMERCIAL REALTY RESOURCES COMPANYMULITFAMILY INVESTMENT SERVICESwww.crrc.us

Summerscape3250 SE 44th StreetOklahoma City, OKCOMMERCIAL REALTY RESOURCES COMPANYMULITFAMILY INVESTMENT SERVICESNeighborhood Mapwww.crrc.us

Summerscape3250 SE 44th StreetOklahoma City, OKCOMMERCIAL REALTY RESOURCES COMPANYMULITFAMILY INVESTMENT SERVICESAerial Photowww.crrc.us

Summerscape3250 SE 44th StreetOklahoma City, OKCOMMERCIAL REALTY RESOURCES COMPANYMULITFAMILY INVESTMENT SERVICESThe SubmarketTinker Air Force Base is a major U.S. Air Forcebase located in Midwest City, which is a suburbof Oklahoma City. The base has more than28,000 military and civilian employees and isthe largest single-site employer in the state ofOklahoma. The installation covers approx.9 square miles and has 760 buildings with abuilding floor space of over 15,200,000 squarefeet .The base is bounded by I-40 on the northand I-240 on the south. With the City of Oklahoma City and Oklahoma County owning severalsquare miles of land adjacent to the base, Tinkeris one of the few military bases in a major metropolitan area with sufficient room for expansion.Furthermore, Tinker is located in a communitythat supports expansion; Oklahoma County voters approved a 2008 measure topurchase the former GM Oklahoma City Assembly plant (located adjacent to thebase) and lease it to Tinker for future expansion.Midwest Regional Medical Center, locatedin Oklahoma City on the eastern edge ofOklahoma City, provides comprehensivemedical care from diagnosis to treatment fora full range of illnesses, injuries and disorders. Midwest Regional employs over 1,650employees.The Mid-Del School District, located immediately east ofOklahoma City, provides a comprehensive educational program for over 14,600 students and has over 1,800 employees. The district attracts the finest teachers available because of location, facilities, commitment to education, and asalary schedule which is one of the higher in the state.Rose State College currently has an enrollment of over8,200 students and has over 1,000 employees.www.crrc.us

Summerscape3250 SE 44th StreetOklahoma City, OKCOMMERCIAL REALTY RESOURCES COMPANYMULITFAMILY INVESTMENT SERVICESThe SubmarketMid America Business Park, is strategically located along the NAFTA corridor.The 50 acre park is an excellent locationfor those seeking to do business withTinker Air Force Base. Several high profile companies have chosen Mid AmericaBusiness Park as their new home. Someof the current tenants include: Boeing,AAR, Chromalloy, Batesville, Pratt &Whitney, CACI & Vertex Aerospace.Construction is underway for the 163,000 square-foot,all-digital, state-of-the-art Oklahoma Heart Hospitallocated at I-240 and Sooner Road in Oklahoma City.Construction is due to be completed by January 2010.Premium Beers of Oklahoma, is the leading beer distributor in the Sooner State and one of the top AnheuserBusch distributorships in the country. The 225,000square-foot facility is located at the southwest corner ofInterstate 240 and Eastern Avenue.The General Motors plant closed in 2006, but was quickly reinvented as an aerospace repair operation for neighboring TinkerAir Force Base, one of the military's largest repair facilitiesThe 218,200-sq.-ft. Quad Graphic printing plant employs100 people and houses two web offset presses, three saddle-stitchers and other equipment to support full print production from digital prepress through distribution. It is located at S.E. 59th and Sunnylane Road.www.crrc.us

Summerscape3250 SE 44th StreetOklahoma City, OKCOMMERCIAL REALTY RESOURCES COMPANYMULITFAMILY INVESTMENT SERVICESOffering DescriptionSummerscape is being offered at the direction of the Lender with the cooperation of thecurrent Borrower. Subject to lender approval, the terms of the existing mortgage will bemodified to provide in-place financing. This enables the Buyer to secure attractive financing at a below market interest rate to achieve the maximum potential of the Property.Offering highlights: Small Equity InvestmentExcellent sub-market supported by Tinker Air Force BaseLocated near Medical and Educational Facilities72% Two and Three Bedroom ApartmentsTownhouse Style ApartmentsSome units offering Washer / Dryer Connectionswww.crrc.us

Summerscape3250 SE 44th StreetOklahoma City, OKCOMMERCIAL REALTY RESOURCES COMPANYMULITFAMILY INVESTMENT SERVICESProperty Description:Summerscape offers several distinctive floor plans with 72%two and three bedroom units. The property is a gardenstyle community with good landscaping and curb appeal.Property Location:Summerscape is located in Oklahoma City on the west sideof Tinker Air Force Base. The neighborhood is mostly defined as residential, commercial and retail establishments.Additional major employers within minutes of the propertyinclude; Premium Beers of Oklahoma, Tinker Air Force Baseand GM Plant, Quad Graphics, Oklahoma Heart Hospital,Mid-west Industrial Park, Mid America Business Park, Midwest Regional Medical Center, Oklahoma City CommunityCollege and Rose State College. This is a very desirable areaof Oklahoma City and is considered a very stable submarketdue to the support and growth of Tinker Air Force Base.Number of Units:125-unitsNumber of Buildings:There are 12 two-story apartment buildings and one singlestory office.Year Built:1968 (according to courthouse records)Apartment Features:Each apartment has an appliance package including frostfree refrigerator, range/oven, vent hood and garbage disposal. Most apartments have dishwashers.Property Amenities:On-site laundry y Garden StyleBrick Veneer with wood and vinyl siding.Flat mansard roofs.www.crrc.us

Summerscape3250 SE 44th StreetOklahoma City, OKCOMMERCIAL REALTY RESOURCES COMPANYMULITFAMILY INVESTMENT SERVICESMechanical System:Electrical Metering:HVAC:Hot Water:Water:Total electric and individually metered. Tenants pay electric.Individual HVACIndividual hot water heatersProvided by PropertySite/Land Area:12.03 acres (according to courthouse records)Density:10.39 units per acreCurrent Occupancy:See Rent RollReal Estate Taxes:R113280800Assessed Value (2009): 287,429Tax Rate (2008): 106.08Tax Amount : 30,490www.crrc.us

Summerscape3250 SE 44th StreetOklahoma City, OKU NIT S UMMARYNo. Units #Bdrm/BethSq.Ft.Total Sq.Ft.Market RentRent/Sq.Ft.Gross/Mo.Gross/Yr.361Bed/1 Bath64023,040399.000.6214,364172,368402Bed/1 Bath79031,600475.000.6019,000228,000222Bed/2 Bath TH90019,800499.000.5510,978131,736203 Bed/1 Bath1,02320,460600.000.5912,000144,00071253 Bed 2 Bath 71752,500728,604D ISTRIBUTION R ATIODistribution Ratio3 Bed22%1 Bed28%2 Bed50%www.crrc.us

Summerscape3250 SE 44th StreetOklahoma City, OKF LOOR P LANSwww.crrc.us

Summerscape3250 SE 44th StreetOklahoma City, OKS ITE M APwww.crrc.us

2Purchase Price & Termswww.crrc.us

Summerscape3250 SE 44th StreetOklahoma City, OKCOMMERCIAL REALTY RESOURCES COMPANYMULITFAMILY INVESTMENT SERVICESPurchase Price & TermsPurchase Price: 3,156,000The offering is structured to produce acash-on-cash return exceeding 24% oncurrent rents. The cap rate range is between 8.09% and 9.44%.Terms of Sale: 356,000 Cash with the assumption ofthe existing mortgage with modificationapproved by the Lender. A sample structure would include a mortgage amount of 2,800,000 at a 6% interest rate, startingout with interest only payments, amortized over 25 years and a three year maturity date.Price Per Apartment Unit: 25,248Price Per Net Rentable Sq. Ft. 30.85Cap Rate:(Based on Current)8.09%Cash-On-Cash:(Based on Current)24.50%Cap Rate:(Based on Stabilized)9.57%Cash-On-Cash:(Based on Stabilized)37.66%www.crrc.us

Annual Property Operating DataRun Date:4-Nov-09Purchase Price: 3,156,000Project:SummerscapePer Unit: 25,248Per Foot: 30.85Mortgage Balance: 2,800,000Equity Requirement: Location:Oklahoma CityNumber of Units:125102,285Net Rentable S.F.Total . Units#Bdrm/BthSq.Ft.361Bed/1 Bath64023,040399.000.6214,364172,368402Bed/1 Bath79031,600475.000.6019,000228,000222Bed/2 Bath TH90019,800499.000.5510,978131,736203 Bed/1 Bath1,02320,460600.000.5912,000144,00071253 Bed 2 Bath 71752,500728,6042007Market RentCap Rate:Jan-Jul 2009Annualized2008ProformaRent/Sq.Ft.Gross PotentialLoss to LeaseVacancy12%-Potential Rent521,299Total Rental Income521,299577,008567,981577,008567,981--Prior Year Deficit30,972-Insurance Payment65,39942,875Insurance Payment credit(65,399)Other ,145609,517600,138639,9585,120R E ilities68,95371,54274,66274,500596 Original Bal. Jan 2006 00149 Current Bal 2,800,000Maintenance/Repairs Exterior47,12431,92436,24528,000224 Interest Only 1 year 168,000Advertising13,34611,09611,08610,00080 Maturity Date3Professional Fees10,4188,6228,0028,10065 Amortization25Total RevenueManagement Fee4%Pest 16,80013,200-Sample Modified Mortgage*17 Interest RatePayroll / Taxes / Benefit / 2,00096(65,399)Mjr Imprvmnts/Replacement ReservesTotal Operating ExpensesNet Operating IncomeDebt ServiceReal Estate Tax 4175,005 216,485*subject to lender approval25,356273,7646.431%800 Debt Service67,579-Cash-Flow Before Taxes6.00%106 ConstantOfficeMjr Imprvmnts Insurance CreditAccount:Gross/Yr.Per d Value:287,429Rate/ 1000:106.08Value:Tax Amount: 30,490Tax Dist:0Per Unit: 2,612,991 20,904

3Income & Expense Statementwww.crrc.us

Summerscape3250 SE 44th StreetOklahoma City, OKCOMMERCIAL REALTY RESOURCES COMPANYMULITFAMILY INVESTMENT SERVICESOperating Data HighlightsIncome Proforma Income reflects rental rates currently being charged and shown onthe Rent Roll with a 5% increase over 2008.Loss-to-Lease has been included at 34,214Vacancy has been calculated at 12% Stabilized operations would eliminate Loss-to-Lease at a 10% vacancyExpenses Real Estate taxes have been increased to the offering price Replacement Reserves have been included at approximately 250 per unitMortgage and Debt Service The Modified First Mortgage is an example of a proposed structure and is subject to Lender approval.www.crrc.us

4Rent & Sale Compswww.crrc.us

Summerscape3250 SE 44th StreetOklahoma City, OKR ENT C OMPSIn order to estimate market rents for Summerscape, five apartment communities were selected asmost competitive. Each property has been chosen due to its similarity with regard to quality, location, age, or amenities. While each property may not be directly comparable in all aspects,collectively they represent the rental market for Summerscape.Property Name and AddressAverage AverageUnitSize Unit SizeYear NO. OfOneTwoBuilt UnitsBedroom Bedroom1Casa Rene19721206599041,242 0.604255386452Park Forest1974224600740940 0.714255386683Madison Village1973212667872- 0.60469489-4Aspen Walk1974144710970- 0.56430526-5Ashwood19741577709241162 0.534004506158576789021019 0.614285066561256408291031 0.593994846061968OverallEffectiveRent perSq. Ft.Market MarketRentRent(1Bed) (2 Bed)1 Bed 0.52 0.49 0.53 0.61 0.54 ‐ 0.70 0.56 ‐ 0.71 0.73 0.71 0.64 0.60 0.522 Bed 0.62 0.58 0.59SummerscapeAverageUnit SizeThreeBedroom3 Bedwww.crrc.usMarketRent(3 Bed)

Summerscape3250 SE 44th StreetOklahoma City, OKTotalRentAvg RentSq.Ft.Sq.Ft.GrossMo.Gross/Yr.65936,904425 0.6423,800285,6002Bed/1Bath84820,352530 0.6212,720152,6402Bed/1.5Bath95226,656545 0.5715,260183,1201,24214,904645 0.527,74092,88082398,816496 812 3Bed/1.5Bath TH120Casa Rene120 Units1972 Construction4401 S. Sooner RoadApartment Features:DishwasherCeiling FansWalk-in closetsFrost-free refrigeratorWasher/Dryer in 3Bed THCommunity Features:Swimming poolLaundry facilityEmergency maintenanceClubhousePicnic areasPlaygroundOwner paid utilities:Water/Sewer/Trashwww.crrc.us

Summerscape3250 SE 44th StreetOklahoma City, OKTotalRentAvg RentSq.Ft.Sq.Ft.GrossMo.Gross/Yr.60060,000425 0.7142,500510,0002Bd1Bath74037,740525 0.7126,775321,300172Bd/13/4Bath74012,580575 0.789,775117,300343Bd/13/4Bath94031,960650 0.6922,100265,200223Bd/2Bath94020,680695 0.7415,290183,480728162,960520 0.71 0Park Forest224 Units1974 Construction4328 SE 46th StreetApartment Features:Cable ReadyDishwasherFireplaceOversized Closets5 units have w/d connectionsCommunity Features:Swimming poolLaundry facilityEmergency maintenanceFitness CenterOwner paid utilities:Water/Sewer/Trashwww.crrc.us

Summerscape3250 SE 44th StreetOklahoma City, OKTotalRentAvg RentSq.Ft.Sq.Ft.GrossMo.Gross/Yr.6002,400439 0.731,75621,0721Bed/1Bath66742,688469 0.7030,016360,1922Bed/1Bath872125,568489 0.5670,416844,992805170,656482 0.60 adison Village212 Units1973 Construction4215 S.E. 53rd StreetApartment Features:Ceiling FansDishwasherPatios with privacy fencesFree basic cableGarbage disposalCommunity Features:Basketball CourtLaundry FacilityPlaygroundTwo Swimming PoolsTennis CourtOwner paid utilities:Water/Sewer/TrashBasic Cable TVwww.crrc.us

Summerscape3250 SE 44th StreetOklahoma City, OKTotalRentAvg RentSq.Ft.Sq.Ft.GrossMo.Gross/Yr.71039,760430 0.6124,080288,9602Bd1.5Bath97042,680515 0.5322,660271,9202Bd/2Bath97029,100530 0.5515,900190,80014 2Bd/2Bath w/d97013,580550 0.577,70092,400144868125,120488 Aspen Walk144 Units1974 Construction5537 S. SunnylaneApartment Features:Fireplaces *select unitsCeiling FansWasher/Dryer hookups 2Bed/2bathunitsLarge PantryBalcony/PatioDishwasherCommunity Features:Laundry FacilitySwimming PoolPlaygroundOwner paid utilities:Water, Trash and SewerBasic Cable TVwww.crrc.us

Summerscape3250 SE 44th StreetOklahoma City, OKTotalRentAvg RentSq.Ft.Sq.Ft.GrossMo.Gross/Yr.3601,080 360 1.00 1,080 12,960Efficiency5218,857 360 0.69 6,120 73,44081Bed/1Bth7866,288 415 0.53 3,320 39,840681Bed/1Bth75851,544 395 0.52 26,860 322,32081Bed/1Bth TH8556,840 425 0.50 3,400 40,800412Bed/1Bth92437,884 450 0.49 18,450 221,400123Bed/2Bth116213,944 615 0.53 7,380 88,560805126,437 424 0.53 66,610 7 Units1972 Construction3451 SE 44th StreetApartment Features:Ceiling FansDishwasherSome Utilities PaidOversized ClosetsSundeckPatio/BalconyCommunity Features:ClubhouseFitness CenterLaundry FacilitySwimming PoolLocking BreezewaysOutdoor StorageOwner paid utilities:Water/Sewer/Trashwww.crrc.us

Summerscape3250 SE 44th StreetOklahoma City, OKRent Comp MapXCasa ReneYPark ForestZMadison Village[Aspen Walk\Ashwoodwww.crrc.us

Summerscape3250 SE 44th StreetOklahoma City, OKSold ComparisonProperty Address: 921 N.E. 12th Street, Moore, OKSize and Age: 85-units, Built in 1974Price: 2,740,000 Price Per Unit: 32,235Closing Date: 08/2009Total Square Footage: 69,624EasthillsProperty Address: 9268 N. Macarthur, Oklahoma City, OKSize and Age: 160-units, Built in 1970Price: 5,778,000 Price Per Unit: 36,112Closing Date: 06/2009Total Square Footage: 154,614Village on the LakeProperty Address: 5537 S. Sunnylane, Midwest City, OKSize and Age: 144-units, Built in 1974Price: 4,150,000 Price Per Unit: 28,819Closing Date: 06/2008Total Square Footage: 126,556Aspen WalkProperty Address: 5522 Woodbrier Drive, Oklahoma City, OKSize and Age: 128-units, Built in 1971Price: 4,452,000 Price Per Unit: 34,781Closing Date: 06/2008Total Square Footage: 113,834Woodbrierwww.crrc.us

Summerscape3250 SE 44th StreetOklahoma City, OKSold ComparisonProperty Address: 965 Biloxi Drive, Norman, OKSize and Age: 121-units, Built in 1973Price: 3,150,000 Price Per Unit: 26,033Closing Date: 12/2008Total Square Footage: 103,092BrookhollowProperty Address: 4200 N. Drexel Blvd, Oklahoma City, OKSize and Age: 165-units, Built in 1964Price: 4,567,000 Price Per Unit: 27,678Closing Date: 09/2008Total Square Footage: 150,394Drexel SquareProperty Address: 2830 S.W. 59th, Oklahoma City, OKSize and Age: 288-units, Built in 1973Price: 7,310,606 Price Per Unit: 25,384Closing Date: 07/2007Total Square Footage: 231,201Potomac Housewww.crrc.us

Summerscape3250 SE 44th StreetOklahoma City, OKSale Comp SummaryPrice/UnitOverall PriceNo. UnitYearBuiltPrice PerSquareFootEasthills 32,235 2,740,000851974 39.35Village on the Lake 36,112 5,778,0001601970 37.37Aspen Walk 28,819 4,150,0001441974 32.79Woodbrier 34,781 4,452,0001281971 39.10Brookhollow 26,033 3,150,0001211973 30.56Drexel Square 27,678 4,567,0001651964 30.37Potomac House 25,384 7,310,6062881973 31.62 29,466 32,147,6061,091 25,248 3,156,000125PropertyAverageSummerscape 33.861968 30.85www.crrc.us

Summerscape3250 SE 44th StreetOklahoma City, OKSale Comp MapXVillage on the LakeYAspen WalkZWoodbrier[Drexel Square\Potomac House]Easthills Brookhollowwww.crrc.us

5Oklahoma City Overviewwww.crrc.us

Oklahoma CityInformationCOMMERCIAL REALTY RESOURCES COMPANYMULITFAMILY INVESTMENT SERVICESWelcome to Oklahoma CityWelcome to Oklahoma City, Capital of the New Century. Here, city leadersand citizens had a vision. A far-reaching vision that's led Oklahoma Cityinto a new frontier of urban innovation. It's a pioneering work in progress.And a driver of unprecedented growth and change. Today, this very citystands as a vision.accomplished.A billion-dollar renaissance has seen sweeping changes and improvementsacross nearly every sector. Significant downtown business development has accompanied the renovation ofconvention, cultural and educational sites. Landmark projects such as the mile-long Bricktown Canal haveinfused a new life and vibrancy into the Southwest's fastest-growing entertainment district. And neighborhood programs citywide have helped restore historichomes and buildings to their original luster.Oklahoma City is going places, and so are its people. They're off to the ballet. Museums. Theatre. Golf courses. Philharmonic. Malls. To the lake, zoo,theme park and the big game.This is an active, activity-filled city. One that enables its residents to enjoyan exceptional quality of life. The mild climate offers year-round sunshine.There's low traffic congestion and low pollution. Plus an abundance of arts.Excellence in education. A variety of recreation. And an ever-broadeningcultural landscape.www.crrc.us

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