Oportun idad Inmobi l iar ia“D is t ressed Proper t ies”

The Manors Apa r tmen t s

965 Manor Drive Palm Springs, Florida 33461

Thank you for your continued interest in the opportunity to acquire

The Manors Apartments, a 93-unit, value-add multi-housing opportunity

located in Palm Springs, Florida. Capital Brokers International Real

Estate has completed underwriting on The Manors Apartments. We

bel ieve the fol lowing agency lender terms wi l l be avai lable to

seasoned borrowers.

Loan to Value 70% LTVTerm 5-10 YearRate 4.15%Amortization 30-YearSecurity Non-Recourse

Loan to Value 65% LTVTerm 3-5 YearRate 3.75%-4.0%Amortization 30-YearSecurity Non-Recourse

The Manors Apartments

INVESTMENT HIGHLIGHTSPROVEN PERFORMANCE WITH STRONG MARKET FUNDAMENTALS.

The Manors Apartments rents are below market in comparison to other rentals in the area. However, the

property demonstrates consistent f inancial performance and offers tremendous upside potent ia l . Capital

Brokers Econometr ic Advisors ant ic ipates an average rent growth of 3. 1% during the next three years.

These trends coupled with the tremendous value-add upside make acquir ing The Manors Apartments at

th is t ime in the market cycle a compel l ing investment opportuni ty .

INCREASED RETURN POTENTIAL WITH EXCELLENT VALUE-ADD POTENTIAL.

The Manors’ thoughtfu l uni t layouts and central locat ion al low an investor to increase future cash f lows by

capital iz ing on a value-add strategy. Recent ly , uni ts were upgraded at Esperanza ( located less than one-

mi le from The Manors Apartments) . These uni ts upgrades are est imated to cost between $1 ,000 and

$2,000 per uni t (depending on the condit ion of the uni t ) and included new cabinets, laminate counter tops,

and vinyl f looring. These uni ts are now receiving more than $50 per uni t per month rent premiums, and

are now charging residents for water and sewer expenses. Current rents at the Manors Apartments are

notably below market . The implementat ion of a value-add program at the property can bolster rents and

st i l l posi t ion the property favorably to i ts competi t ive subset .

CENTRALLY LOCATED TO MAJOR EMPLOYMENT DISTRICTS.

With immediate access to Interstate 95 (1 .4 mi les via 10th Avenue North) , the Manors Apartments is with in

20 minutes of Palm Beach’s two major employment centers — downtown West Palm Beach and Boca

Raton. Ten minutes north of the property l ies the West Palm Beach CBD featur ing 5.6 mi l l ion sq. ft . of off ice

with access to over 30,000 jobs; twenty minutes south l ies Arvida Park of Commerce, an 850-acre off ice

park with over 11 ,000 employees; and two and a half mi les south l ies Quantum Corporate Off ice Park, a

500-plus acre commercial park support ing over 5,100 jobs. In addit ion, the community is less one-mi le

from Palm Beach State Col lege which is the sixth largest of the 28 col leges compris ing the Flor ida Col lege

System, serving over 49,000 students and home to over 1 ,000 employees.

SUBSTANTIAL DISCOUNT TO REPLACEMENT COSTS.

With in Palm Beach County, there has been a cont inued reversion from the shadow inventory to profes-

sional ly managed communit ies. Th is trend, a long wi th the lack of qual i ty product in the market , posi t ions

the Manors Apartments to benefi t from the strong fundamentals ant ic ipated for the market . Current

replacement costs for a simi lar sty le asset would cost over $112,000 per uni t . This does not account for

the addit ional 25% that would be factored in for development and lease-up risk, which would push the

cost to over $140,000 per uni t . In order to substant iate these costs, rents would need to be more than

double today’s effect ive rents in order to achieve a desired return on costs.

POTENTIAL VALUE-ADD UPSIDE

Capital Brokers est imates there to be a potent ia l $ 50 pupm premium for upgraded uni ts based on the

uni t upgrades at Esperanza ( located less than one-mi le from The Manors Apartments) . These uni ts

upgrades are est imated to cost between $ 1 ,000 and $ 2,000 (depending on the condit ion of the uni t )

and included new cabinets, laminate counter tops, and vinyl f looring.These uni ts are now receiving more

than $ 50 per uni t per month rent premiums, and are now charging residents for water and sewer

expenses. Current rents at the Manors Apartments are notably below market.

INVESTMENT SUMMARY

Units 93

Total SF 67,200

Average SF | Uni t 723

Year Completed 1968 and 1970

Current Occupancy as of 02/01/2013 88.2%

Market Rent $ 718

Market Rent | SF $ 0.99

Price $ 5,900,000

Price | Uni t $63,441

Price | SF $ 88

Offers Due TBD

The Manors Apartments

1 9495 B i s cayne B l vd .Su i t e 708Aven t u ra , F l 33 180Phone : 305 933 1 242 Fax 305 933 1 2 47www.cap i ta lb rokersusa .com

INVESTMENT CONTACT :

CAP I TAL BROKERS