Elizabeth Portfolio 3

3 PROPERTIES | 89 UNITS

ELIZABETH, NEW JERSEY

INVESTMENT ADVISORS

NAT GAMBUZZA

Senior Managing Director

NJ DRE #0123988

973.809.1755

nat.gambuzza@berkadia.com

TREVOR FIEBEL

Senior Director

NJ DRE #1431448

908.285.6921

trevor.fiebel@berkadia.com

NICK BALANCIA

Associate Director

NJ DRE #2322128

908.642.1905

nick.balancia@berkadia.com

BRIAN ANTOGNINI

Senior Transaction Manager

NJ DRE #1111667

201.739.2331

brian.antognini@berkadia.com

MORRISTOWN,

NEW JERSEY

17 Headquarters Plaza West Tower

8th Floor

Morristown, NJ 07960

TEAM CAPABILITIES | NEW JERSEY INVESTMENT SALES

Berkadia New Jersey Investment Sales, led by Nat Gambuzza, provides a depth of advisory and transaction services for income generating properties that is unparalleled in the industry. Their clients include private investors, partnerships, lenders and institutions of various net worth. The team has specialized

expertise and excels in the most complex transactions, including portfolio sales, distressed property sales, note sales and time-sensitive 1031 tax exchange transactions. Prior to joining Berkadia in 2022, the team worked at another national real estate investment services firm.

MIKE

SPENCER BERIONT

NAT GAMBUZZA

BRIAN ANTOGNINI

UNION COUNTY

3,549 Units | $353,292,700

TEAM CAPABILITIES | RECENT TRACK RECORD (UNION COUNTY)

611 W BLANCKE

Linden, NJ

Units: 8

Sales Price: UNDER CONTRACT

574 JEFFERSON

Elizabeth, NJ

Units: 28

Sales Price: UNDER CONTRACT

RAHWAY & LINDEN PORTFOLIO

Rahway & Linden, NJ

Units: 52

Sales Price: $11,150,000

Price Per Unit: $214,423

RAHWAY PORTFOLIO

Rahway, NJ

Units: 51

Sales Price: $7,500,000

Price Per Unit: $147,058

MARLAW APARTMENTS

Elizabeth, NJ

Units: 36

Sales Price: $4,800,000

Price Per Unit: $133,333

BELLA VISTA

Elizabeth, NJ

Units: 82

Sales Price: $9,750,000

Price Per Unit: $118,902

ROSELLE & LINDEN PORTFOLIO

Roselle & Linden, NJ

Units: 35

Sales Price: $6,200,000

Price Per Unit: $177,142

THE EL MORA

Elzabeth, NJ

Units: 21

Sales Price: $3,307,500

Price Per Unit: $157,500

TEAM CAPABILITIES | 2024 CASE STUDIES

The case studies below are examples of how our team has excelled for our clients in maximizing value for their assets.

574 JEFFERSON ELIZABETH, NJ

Units 28

ƒ Property Marketed by Other Firm for 12-Months

ƒ Seller Tasked Berkadia to Sell Property in Late 2023

ƒ Berkadia has Property Under Contract

611 W BLANCKE LINDEN, NJ

Units 8

ƒ Seller Purchased for 1.34MM in August 2023

ƒ Seller Tasked Berkadia to Sell Property in Early 2024

ƒ Berkadia has Property Under Contract for a 15% Increase on Price within 6-Months of Seller Ownership

51 E MAIN BERGENFIELD, NJ

Units 26

ƒ New Construction Property Previously Listed with Two Other Firms

ƒ Seller Tasked Berkadia to Sell Property in February 2024

ƒ Berkadia Currently Negotiating Two Separate LOIs with Seller

11 DEHART MORRISTOWN, NJ

Units 59

ƒ Property Previously Marketed by Other Firms

ƒ Berkadia Sourced an All-Cash Buyer

ƒ Berkadia Sold at Start of 2024 for Highest Price per Unit in Morristown

TEAM CAPABILITIES | MARKET FACTORS

The following market factors influence investor decisions while evaluating opportunities. We take this into consideration when assembling our valuations.

„ Elizabeth Just Underwent 1st Tax Reassessment in 50 Years; Portfolio’s Taxes are Projected to be Increasing 22.53% in 2024

„ Investors are Being Cautious Short Term While Maintaining Long Term Optimism Specifically in Multifamily

„ Historically Low Rates Have Increased Substantially

„ Higher Interest Rates Prevent Homeownership Which Bodes Well for Rentals

„ Inflation Driving Up Operating Expenses, Including Utilities, Labor, and Materials

„ Lenders Restricted by Debt Service Coverage Ratios

„ Rents in Market up 6.4% YoY and 29.2% Since 2018

„ Current Market Occupancy at 96.2% 4Q23 Projected to Reach 97.2% by End of 2024

„ Elizabeth has Prohibitive Rent Control Ordinance

TEAM CAPABILITIES | SUPPLY AND OCCUPANCY

Fundamentals remain strong with absorption, rents, and occupancy.

Absorption is Outpacing New Deliveries/Vacancy

Market Occupancy Close to 99% Coupled with Significant Rental Growth

THE OPPORTUNITY | INVESTMENT SUMMARY

662

151-157

145-149

from an overwhelming demand for renters to live in Elizabeth, upside in current rents, and an unbeatable location to large office hubs, nightlife options, and mass transportation.

INVESTMENT HIGHLIGHTS

THE INVESTMENT: Spanning three properties, this garden-style apartment portfolio comprises of 89 units and offers a substantial value-add opportunity.

UNIQUE UNIT-MIX: This 3-property portfolio has an ideal overall unit mix of 4 studio apartments, 77 one-bedroom apartments, and 8 two-bedroom apartments.

LONG TERM OWNERSHIP: This garden-style apartment portfolio has been owned, cared for, and managed by the same ownership group for a collective 50 years.

VALUE-ADD: Portfolio presents a significant value-add opportunity for an investor with the current rent roll 57% below market.

MARKET PERFORMANCE: The City of Elizabeth boasts a 3.8% vacancy rate, with rents up 6.4% YoY and up 29.2 % since 2018.

STRATEGIC LOCATION: Ideal location with access by car and train to the region’s major employment centers in New York City, Newark, and Jersey City.

The Elizabeth Portfolio presents an investor with a rare opportunity to purchase a total of 89 apartments in Elizabeth, NJ. The Elizabeth Portfolio sits adjacent to public transportation, is situated near stable employment centers, and is within a few blocks of numerous dining, shopping, and nightlife options. The investment benefits

THE OPPORTUNITY | 145-149 STILES STREET

145-149 STILES STREET

ADDRESS 145-149 Stiles St

COUNTY Union County

MUNICIPALITY Elizabeth

LAND AREA 0.50 Acres

YEAR BUILT 1962

# OF UNITS 34 Apartments

PARKING SPACES 37 Surface Parking Spaces

145-149 STILES STREET

STRUCTURAL

FOUNDATION Cinderblock

FRAME Wood Frame

EXTERIOR Masonry

WINDOWS Double Hung- Vinyl

ROOF Pitched Asphalt

MECHANICAL

UTILITIES Separately Metered

HOT WATER Central Hot Water Heater

COOLING Through Wall A/C Sleeves

HEATING Central Boiler with Baseboard Distribution

SECURITY SYSTEM

FIRE SAFETY

Controlled Entry w/ Full Camera Surveillance System

Hard-Wired in Common Areas w/ Central Monitoring System, Fully Sprinklered

LAUNDRY Leased Laundry Facility

THE OPPORTUNITY | 151-157 STILES STREET

151-157 STILES STREET

ADDRESS 151-157 Stiles Street

COUNTY Union County

MUNICIPALITY Elizabeth

LAND AREA 0.68 Acres

YEAR BUILT 1972

# OF UNITS 32 Apartments

PARKING SPACES 35 Surface Parking Spaces

151-157 STILES STREET

STRUCTURAL

FOUNDATION Cinderblock

FRAME Wood Frame

EXTERIOR Masonry/Wood Accents

WINDOWS Double Hung- Vinyl

ROOF Flat

MECHANICAL

UTILITIES Separately Metered

HOT WATER Central Hot Water Heater

COOLING Through Wall A/C Sleeves

HEATING Central Boiler with Baseboard Distribution

SECURITY SYSTEM

FIRE SAFETY

Controlled Entry w/ Full Camera Surveillance System

Hard-Wired in Common Areas with Central Monitoring System

LAUNDRY Leased Laundry Facility

THE OPPORTUNITY | 662 SALEM AVENUE

642-650 SALEM AVENUE

ADDRESS 662 Salem Avenue

COUNTY Union County

MUNICIPALITY Elizabeth

LAND AREA 0.38 Acres

YEAR BUILT 1962

# OF UNITS 23 Apartments

PARKING SPACES 21 Surface Parking Spaces

662 SALEM AVENUE

STRUCTURAL

FOUNDATION Cinderblock

FRAME Wood Frame

EXTERIOR Masonry

WINDOWS

Double Hung- Vinyl

ROOF Pitched Asphalt

MECHANICAL

UTILITIES Separately Metered

HOT WATER Central Hot Water Heater

COOLING

Through Wall A/C Sleeves

HEATING Central Boiler with Baseboard Distribution

SECURITY SYSTEM

FIRE SAFETY

Controlled Entry w/ Full Camera Surveillance System

Hard-Wired in Common Areas with Central Monitoring System

LAUNDRY Building Owned Equipment

THE LOCATION | ELIZABETH, NEW JERSEY

Elizabeth, New Jersey, is a culturally diverse city located in Union County. It is a bustling urban center that offers its residents a mix of historical charm, economic opportunities, and convenient access to transportation hubs. Elizabeth offers its residents a vibrant community atmosphere with a range of cultural, recreational, and educational opportunities. The city boasts several parks, including Warinanco Park and Mattano Park, providing green spaces for outdoor activities and relaxation. Elizabeth is home to various cultural institutions, such as the Boxwood Hall State Historic Site and the Museum of the Historical Society of Elizabeth, which offer insights into the city’s rich history. The city is home to several major employers, including: Port Newark-Elizabeth Marine Terminal, Trinitas Regional Medical Center, as well as Elizabeth Public Schools. The city is served by NJ Transit buses, which connect residents to destinations throughout New Jersey and New York City. Additionally, Elizabeth is located near Newark Liberty International Airport, offering air travel options for both domestic and international journeys. Elizabeth is served by NJ Transit’s Northeast Corridor rail line, providing commuter rail service to destinations such as New York City, Newark, and Trenton. The city also has access to the PATH train system, facilitating travel to Manhattan and other parts of New York City. Elizabeth, NJ, offers its residents a diverse and dynamic living environment with a range of amenities, employment opportunities, and transportation options, contributing to a high quality of life for its residents.

145-149 STILES STREET

151-157 STILES STREET

662 SALEM AVENUE

THE LOCATION | TRANSPORTATION

Through the NJ Transit Authority, residents have access to the region’s expansive public transportation options. Residents’ choices vary from NJ Transit bus system, the NJ Transit rail system, and multiple regional highways.

NJTRANSIT BUS SYSTEM: The massive NJ Transit Bus system extends residents mass transportation reach to the entire Metro New York area. NJ Transit provides bus service locally as well as to the New York Port Authority Bus Terminal. Elizabeth has bus stops scattered throughout the town with multiple different service lines.

REGIONAL HIGHWAYS: Elizabeth provides immediate access to multiple local and regional highways such as Routes 1, 9, 22, 27, 28, 78, I-95 & The Garden State Parkway.

NJTRANSIT: Northeast Corridor Line: NJ Transit commuter rail service connecting Elizabeth to destinations such as Newark, Jersey City, and New York City. Stops include Elizabeth Station and North Elizabeth Station.

REGIONAL AIRPORTS: Newark Liberty International Airport: Located nearby in Newark, NJ, Newark Liberty International Airport offers domestic and international flights, providing residents of Elizabeth with air travel options for both business and

E LIZABETH , NJ

KEY TAKEAWAYS 1-MILE RADIUS (TMA )

RENT VS. OWN

„ Average mortgage payment: $4,188*

„ Effective rent: $2,312

„ Difference: $1,876

LEASING ACTIVITY

„ 1,291 net move-ins in 2023

„ 3,218 net move-ins projected in 2024

„ Would be highest annual absorption on record

APPRECIATING HOME VALUES

According to Realtor.com, the median home price in Elizabeth grew 12.0% to approximately $560,000 in February 2024

AFFLUENT HOUSEHOLDS

„ The median HHI within three miles of the subject property ($62,873) is projected to reach $70,200 by 2028, equating to an 11.7% increase from 2023

EFFECTIVE RENT

„ 56 net move-outs during 2023

„ 243 net move-ins expected during 2024 *($560,000

NEW SUPPLY

„ 1,811 new units came online in 2023

„ 2,428 new units projected to come online in 2024

435 W GRAND STREET

233 W GRAND STREET

1247 CLINTON PLACE

129 W GRAND STREET

432 MAPLE AVENUE

115 ORCHARD STREET

1270 CLINTON PLACE

204 WESTFIELD AVENUE

32-44 STILES STREET

145-157 STILES STREET

662 SALEM AVENUE

STILES MANOR

ABERDEEN ARMS APARTMENTS

TURTLE VILLAGE

CAMBRIDGE MANOR

145-157 STILES STREET

662 SALEM AVENUE

THE FINANCIALS

IMPORTANT INFORMATION & DISCLAIMER: The information contained herein is assumed to be correct and market-supported. Output produced from this model should not be considered an appraisal. Projections are forecasts and are not to be considered fact. The information contained in this file is privileged and confidential; it is intended only for use by Berkadia® and their clients. This file may not be reproduced physically or in electronic format without the express written consent of Berkadia. Not responsible for errors and omissions.

IMPORTANT INFORMATION & DISCLAIMER: The information contained herein is assumed to be correct and market-supported. Output produced from this model should not be considered an appraisal. Projections are forecasts and are not to be considered fact. The information contained in this file is privileged and confidential; it is intended only for use by Berkadia® and their clients. This file may not be reproduced physically or in electronic format without the express written consent of Berkadia. Not responsible for errors and omissions.

COMBINED FINANCIALS

COMBINED FINANCIALS | RENT ROLL ANALYSIS

IMPORTANT INFORMATION & DISCLAIMER: The information contained herein is assumed to be correct and market-supported. Output produced from this model should not be considered an appraisal. Projections are forecasts and are not to be considered fact. The information contained in this file is privileged and confidential; it is intended only for use by Berkadia® and their clients. This file may not be reproduced physically or in electronic format without the express written consent of Berkadia. Not responsible for errors and omissions.

CREATED & NEGOTIATE | THE BERKADIA PROCESS

„ Secure and Transparent Process

„ Controlled Document Center with Tiered Access to Due Dilligence

„ Clear Guidance on Core Fixed Expenses

„ Tracking Clients who have Signed Confidentiality Agreements

„ Tracking Buyer Activity within the Document Center

„ Manage Distribution of Due Diligence to be Done before Contract Signing

CREATED & NEGOTIATE | THE BERKADIA PROCESS

„ Weekly Marketing Reports with Ownership Group throughout Selling Process

„ Maximum Reach by Utilizing New Jersey Berkadia’s Database and the National Berkadia Platform

„ To Ensure a Robust Response we Will go to Market Unpriced to Drive Attention

„ Marketing Process will Finish with a Call for Offers to Spur Action and Competition

„ Transparent Process Reduces Seller Risk in Volatile Market

CREATED & NEGOTIATE | TIMELINE TO SUCCESS

14 DAYS 30-40 DAYS 10-14 DAYS 5-14 DAYS 28-35 DAYS 15-30 DAYS

„ Kickoff meeting

„ Thorough property due diligence

„ Detailed underwriting & evaluation

„ Professional photography and video walkthrough

„ Marketing materials created

„ Set up weekly marketing updates with client

„ Distribute executive summary and teaser to national & international investors

„ Distribute comprehensive marketing package

„ Ongoing discussion with buyers

„ Create competitive environment

„ Conduct property tours

„ Collect initial offers

„ Evaluate offers

„ Dissemination of due diligence materials

„ Best & final bid

„ Buyer interviews

„ Counter best & final offers

„ Modify seller’s prepared purchase & sale agreement with buyers best & final comments

„ Open escrow upon delivery of contract & deposit

„ Force significant non-refundable deposit

„ Comprehensive property review including:

„ Title & survey

„ Zoning & city compliance

„ Environmental

„ Structural

„ Coordinate transfer of funds & prorations

„ Close of escrow

MARKETING STRATEGY

Dedicated Property Website

Dynamic, user-friendly websites.

Speed-to-market with round-the-clock support for immediate changes.

Online document center with integrated activity tracking.

Online Lead Registration

Instant access to secure documents.

Interested buyer tracker and reporting.

Enables advisors to prioritize and follow up on inquiries immediately.

Seller Access

View prospects, buyer feedback, offer activity and status updates.

Effective team communication and coordination during process.

Peace of mind knowing your data is secure.

Real-Time

Nationwide Database

Buyer and sale information.

Current historical market information.

Tracking of assets and loans.

Email Campaign

Customized to reach every potential buyer, wherever they may be.

Mobile-friendly emails to reach buyers on the go. Reach thousands of qualified buyers with targeted lists that drive traffic to the property website.

Print Campaign

Visually compelling, data-driven marketing materials customized for your asset.

Local, regional and national assignment coverage.

Reach more potential buyers through re-engagement strategies.

A LONG TRADITION OF TAKING THE LONG VIEW.

Not your typical CRE firm.

Before we tell you what we are, we’d like to tell you what we’re not. We’re not tied to quarterly earnings reports, because we’re privately held. Our ownership structure is unique, so we can think, solve, and react differently.

We’re a joint venture of Berkshire Hathaway and Jefferies Financial Group – both of which are renowned for their capital strength and sophisticated investment strategies. We have Investment Sales, Mortgage Banking, and Servicing seamlessly integrated so we can adapt in real time—which means we’ll craft custom, long-term solutions that deliver the best outcomes.

We’re Berkadia. A different kind of CRE firm. With industry-leading investments in technology, and data-driven insights from the country’s most skilled CRE experts, we’re built to be more flexible, creative, and innovative. Deal after deal. Year after year.

INVESTMENT ADVISORS

NAT GAMBUZZA

Senior Managing Director

NJ DRE #0123988

973.809.1755

nat.gambuzza@berkadia.com

TREVOR FIEBEL

Senior Director

NJ DRE #1431448

908.285.6921

trevor.fiebel@berkadia.com

NICK BALANCIA

Associate Director

NJ DRE #2322128

908.642.1905

nick.balancia@berkadia.com

BRIAN ANTOGNINI

Senior Transaction Manager

NJ DRE #1111667

201.739.2331

brian.antognini@berkadia.com

MORRISTOWN, NEW JERSEY

17 Headquarters Plaza West Tower

8th Floor

Morristown, NJ 07960

DISCLAIMER

The material contained in this document is confidential, furnished solely for the purpose of considering investment in the property described therein and is not to be copied and/or used for any purpose or made available to any other person without the express written consent of Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. In accepting this, the recipient agrees to keep all material contained herein confidential.

This information package has been prepared to provide summary information to prospective purchasers and to establish a preliminary level of interest in the property described herein. It does not, however, purport to present all material information regarding the subject property, and it is not a substitute for a thorough due diligence investigation. In particular, Berkadia Real Estate Advisors LLC, Berkadia Real Estate Advisors Inc. and Seller have not made any investigation of the actual property, the tenants, the operating history, financial reports, leases, square footage, age or any other aspect of the property, including but not limited to any potential environmental problems that may exist and make no warranty or representation whatsoever concerning these issues. The information contained in this information package has been obtained from sources we believe to be reliable; however, Berkadia Real Estate Advisors LLC, Berkadia Real Estate Advisors Inc. and Seller have not conducted any investigation regarding these matters and make no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. Any pro formas, projections, opinions, assumptions or estimates used are for example only and do not necessarily represent the current or future performance of the property.

Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. and Seller strongly recommend that prospective purchasers conduct an in-depth investigation of every physical and financial aspect of the property to determine if the property meets their needs and expectations. We also recommend that prospective purchasers consult with their tax, financial and legal advisors on any matter that may affect their decision to purchase the property and the subsequent consequences of ownership.

All parties are advised that in any property the presence of certain kinds of molds, funguses, or other organisms may adversely affect the property and the health of some individuals. Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. recommend, if prospective buyers have questions or concerns regarding this issue, that prospective buyers conduct further inspections by a qualified professional.

The Seller retains the right to withdraw, modify or cancel this offer to sell at any time and without any notice or obligation. Any sale is subject to the sole and unrestricted approval of Seller, and Seller shall be under no obligation to any party until such time as Seller and any other necessary parties have executed a contract of sale containing terms and conditions acceptable to Seller and such obligations of Seller shall only be those in such contract of sale.

For more information on these and other Berkadia® exclusive listings, please visit our website at www.berkadia.com

Berkadia®, a joint venture of Berkshire Hathaway and Jefferies Financial Group, is an industry leading commercial real estate company providing comprehensive capital solutions and investment sales advisory and research services for multifamily and commercial properties. Berkadia® is amongst the largest, highest rated and most respected primary, master and special servicers in the industry.

© 2024 Berkadia Proprietary Holding LLC

Berkadia® is a trademark of Berkadia Proprietary Holding LLC

Investment sales and real estate brokerage businesses are conducted exclusively by Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. Commercial mortgage loan origination and servicing businesses are conducted exclusively by Berkadia Commercial Mortgage LLC and Berkadia Commercial Mortgage Inc. Tax credit syndication business is conducted exclusively by Berkadia Affordable Tax Credit Solutions. In California, Berkadia Real Estate Advisors Inc. conducts business under CA Real Estate Broker License #01931050; Adrienne Barr, CA DRE Lic. # 01308753. Berkadia Commercial Mortgage LLC conducts business under CA Finance Lender & Broker Lic. #988-0701; and Berkadia Commercial Mortgage Inc. under CA Real Estate Broker Lic. #01874116. This proposal is not intended to solicit commercial mortgage company business in Nevada. For state licensing details for the above entities, visit www.berkadia.com/licensing.