pro forma

Below is a pro forma operating statement representing Berkadia’s projections for the first year of buyers’ operations. the pro forma illustrates current operations on (1) an “As-is” basis, which assumes continuation of current operations and on (2) a fully stabilized, fully-renovated basis, which projects operations based on the repositioning strategy in the Executive Summary section of this Offering Memorandum. On the following pages are detailed footnotes explaining our assumptions.

Footnotes

1. Market Rents – t he table below summarizes average in-place rents and lease rates for the last 30, 60, 90, and 180 days of move-ins for each unit type as of September 2, 2022. Our renovated Pro Forma reflects the recent leasing and is meant to project stabilized year one rents. t he renovated Pro Forma trends market rents 5% to reflect rent growth for an investor’s first full year of ownership.

2. Loss or Gain to Lease – the “as-is” pro forma projects a loss-to-lease of 50.0% which equates to half of the total loss-to-lease today. the stabilized renovated pro forma projects loss-to-lease at 2.0% of gross scheduled rents.

3. Concessions – t he pro forma assumes no concessions moving forward.