PROPERTY PROFILE Acquisition Summary Skyview at Palm Center is a 360-unit multifamily residential community that is comprised of 30 buildings and sits on 15.3 acres. The REO (Real Estate Owned) asset was purchased in December 2012 directly from Freddie Mac. About Resource Real Estate Opportunity REIT, Inc. The REIT is a unique investment opportunity that seeks to take advantage of the current distressed commercial real estate market; distressed sellers of commercial real estate and deeply discounted multifamily properties with short-term operating issues that can be resolved by experienced management and new capital investment in order to increase value for investors. Resource Real Estate, Inc. (“Resource Real Estate”), our sponsor and its affiliates have been actively engaged in distressed real estate investing and turning around distressed properties since 1991. Purchase Price » In December 2012, the property was foreclosed on with an outstanding senior mortgage of $19.5 million. » The property was acquired by Resource Real Estate Opportunity REIT at a discounted purchase price of $14.4 million. » The purchase price represents a 56% discount to the property’s estimated replacement cost if built today. Capital Plan » We anticipate deploying capital to repair, upgrade and reposition the asset in the Houston Texas marketplace over the next 18-24 months. » Capital is expected to be used to upgrade unit interiors as well as the exterior of the property and to market it within the community once construction has been completed. Skyview at Palm Center Houston, Texas www.ResourceREIT.com
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PROPERTY PROFILE
Acquisition Summary
Skyview at Palm Center is a 360-unit multifamily residential community that is comprised of 30 buildings and sits on15.3 acres.
The REO (Real Estate Owned) asset waspurchased in December 2012 directly fromFreddie Mac.
About Resource Real EstateOpportunity REIT, Inc.
The REIT is a unique investment opportunity that seeksto take advantage of the current distressed commercialreal estate market; distressed sellers of commercial realestate and deeply discounted multifamily propertieswith short-term operating issues that can be resolvedby experienced management and new capital investment in order to increase value for investors. Resource Real Estate, Inc. (“Resource Real Estate”), oursponsor and its affiliates have been actively engagedin distressed real estate investing and turning arounddistressed properties since 1991.
Purchase Price
» In December 2012, the property was foreclosed on with an outstandingsenior mortgage of $19.5 million.
» The property was acquired by Resource Real Estate Opportunity REIT at a discounted purchase price of $14.4 million.
» The purchase price represents a 56% discount to the property’s estimatedreplacement cost if built today.
Capital Plan
» We anticipate deploying capital to repair, upgrade and reposition the assetin the Houston Texas marketplace over the next 18-24 months.
» Capital is expected to be used to upgrade unit interiors as well as the exterior of the property and to market it within the community once construction has been completed.
Skyview at Palm Center Houston, Texas
www.ResourceREIT.com
This is neither an offer to sell nor a solicitation of an offer to buy the securities described herein; an offering is made only by prospectus. This information must bepreceded or accompanied by a prospectus in order to understand fully all of the implications and risks of the offering. Neither the attorney general of the state ofNew York nor any other state regulators have passed on or endorsed the merits of this offering. Any representation to the contrary is a criminal offense.Shares offered through Resource Securities, Inc., an affiliate of Resource Real Estate and member – FINRA, SIPC.
» 360-unit multifamily residential community constructed in 2000
» 30 buildings on 15.3 acres
» Comprised of over 418,500 rentable square feet
Property Location
» Skyview at Palk Center is located on the south side of Griggs Road, less thanone-half mile northwest of Interstate 610.
» By the end of 2013, there will be a new metro light-rail line adjacent to theproperty, the Palm Center Station, providing access to MacGregor Park, University of Houston, Texas Southern University and downtown employmentcenters.
Risk Factors» No public market currently exists for our sharesof common stock, and we have no current plansto list our shares on an exchange.
» We set the offering price arbitrarily. This price is unrelated to the book or net value of our assets or to our expected operating income.
» We have a limited operating history, and as ofDecember 31, 2012, our total assets were$180.5 million and consisted primarily of $142.3million of investments, $29.9 million of cash and$3.0 million of deferred offering costs. We havenot identified all of the investments to acquirewith the proceeds of this offering; consequently,you will not have the opportunity to evaluate allof our investments before we make them.
» We are dependent on our advisor and its affiliates to select investments and conduct our operations and this offering. Our advisorhas a limited operating history and no experienceoperating a public company.
» We pay substantial fees and expenses to our advisor, its affiliates and broker-dealers,whose payments increase the risk that you will not earn a profit on your investment.
» Our executive officers and some of our directors face conflicts of interest.
» We may lack diversification if we raise substantially less than the maximum offering.
» Property values may fall due to environmental,economic or other reasons. A change in interestrates can negatively impact our performance.
» There are restrictions on the ownership andtransferability of our shares of common stock.See “Description of Shares – Restriction onOwnership of Shares” found in the prospectus.
» Our charter permits us to pay distributions fromany source, including from offering proceeds,borrowings, sales of assets or waivers or deferralsof fees otherwise owed to our advisor. To theextent these distributions exceed our net incomeor net capital gain, a greater proportion of yourdistributions will generally represent a return ofcapital as opposed to current income or gain,as applicable. Our organizational documents donot limit the amount of distributions that we canfund from sources other than from cash flowsfrom operations.
» We may change our targeted investments without stockholder consent.
» Some of the other programs sponsored by our sponsor, Resource Real Estate, Inc. (“Resource Real Estate”), have experienced adverse business developments or conditions.
» Assuming all else is equal, REITs investing in “opportunistic” commercial real estate generally have a higher level of risk associatedwith them compared to those investing in coreand value-add properties. This is based on the premise that “opportunistic” investing isdesigned to generate returns through capitalappreciation rather than income.
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