The Redland Student Housing Offering Memorandum

OFFERING MEMORANDUM

505 RIVERBEND PKWY AT H E N S , G A 3 0 6 0 5

1 5 4 - U N I T / 4 9 5 - B E D VA LU E A D D STUDENT HOUSING COMMUNITY UNIVERSITY OF GEORGIA

Capital Markets | National Student Housing

1 5 4 - U N I T / 4 9 5 - B E D VA LU E A D D

STUDENT HOUSING COMMUNITY UNIVERSITY OF GEORGIA

D I S C LO S U R E A N D A G R E E M E N T A F F I L I AT E D B U S I N E S S D I S C L O S U R E

DISCLAIMER

CBRE, Inc. operates within a global family of companies with many subsidiaries and related entities (each an “Affiliate”) engaging in a broad range of commercial real estate businesses including, but not limited to, brokerage services, property and facilities management, valuation, investment fund management and development.

At times different Affiliates, including CBRE Global Investors, Inc. or Trammell Crow Company, may have or represent clients who have competing interests in the same transaction. For example, Affiliates or their clients may have or express an interest in the property described in this Memorandum (the “Property”), and may be the successful bidder for the Property. Your receipt of this Memorandum constitutes your acknowledgement of that possibility and your agreement that neither CBRE, Inc. nor any Affiliate has an obligation to disclose to you such Affiliates’ interest or involvement in the sale or purchase of the Property. In all instances, however, CBRE, Inc. and its Affiliates will act in the best interest of their respective client(s), at arms’ length, not in concert, or in a manner detrimental to any third party. CBRE, Inc. and its Affiliates will conduct their respective businesses in a manner consistent with the law and all fiduciary duties owed to their respective client(s).

This Memorandum contains select information pertaining to the Property and the Owner, and does not purport to be all-inclusive or contain all or part of the information which prospective investors may require to evaluate a purchase of the Property. The information contained in this Memorandum has been obtained from sources believed to be reliable, but has not been verified for accuracy, completeness, or fitness for any particular purpose. All information is presented “as is” without representation or warranty of any kind. Such information includes estimates based on forward-looking assumptions relating to the general economy, market conditions, competition and other factors which are subject to uncertainty and may not represent the current or future performance of the Property.

All references to acreages, square footages, and other measurements are approximations. This Memorandum describes certain documents, including leases and other materials, in summary form. These summaries may not be complete nor accurate descriptions of the full agreements referenced. Additional information and an opportunity to inspect the Property may be made available to qualified prospective purchasers. You are advised to independently verify the accuracy and completeness of all summaries and information contained herein, to consult with independent legal and financial advisors, and carefully investigate the economics of this transaction and Property’s suitability for your needs. ANY RELIANCE ON THE CONTENT OF THIS MEMORANDUM IS SOLELY AT YOUR OWN RISK.

CONFIDENTIALIT Y AGREEMENT Your receipt of this Memorandum constitutes your acknowledgement that (i) it is a confidential Memorandum solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property, (ii) you will hold it in the strictest confidence, (iii) you will not disclose it or its contents to any third party without the prior written authorization of the owner of the Property (“Owner”) or CBRE, Inc., and (iv) you will not use any part of this Memorandum in any manner detrimental to the Owner or CBRE, Inc.

The Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or to terminate discussions at any time with or without notice to you. All offers, counteroffers, and negotiations shall be non-binding and neither CBRE, Inc. nor the Owner shall have any legal commitment or obligation except as set forth in a fully executed, definitive purchase and sale agreement delivered by the Owner.

If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return it to CBRE, Inc.

© 2017 CBRE, Inc. All rights reserved.

2

1 5 4 - U N I T / 4 9 5 - B E D VA LU E A D D

STUDENT HOUSING COMMUNITY UNIVERSITY OF GEORGIA

E XC LU S I V E A D V I S O R S C B R E N AT I O N A L S T U D E N T H O U S I N G JACLYN FITTS Director of Student Housing +1 214 979 6524 jaclyn.fitts@cbre.com WILLIAM VONDERFECHT Associate Director of Student Housing +1 214 979 6194 william.vonderfecht@cbre.com CASEY SCHAEFER Associate +1 214 979 6364 casey.schaefer@cbre.com AT L A N TA M U LT I F A M I LY T E A M SHEA CAMPBELL Senior Vice President +1 404 923 1226 shea.campbell@cbre.com PAUL BERRY Vice Chairman +1 404 923 1425 sean.cunningham@cbre.com

PROPERT Y TOURS

PROPERTY

CBRE representatives will accompany you on property tours.

All tours will require a minimum 48 hours advance notice and are subject to schedule availability. All tours must be coordinated by CBRE. You may schedule a property tour by contacting the individual below.

The property available in this offering is located at 505 Riverbend Pkwy, Athens, Georgia 30605. Redland is a 154-unit/495-bed, Value Add student housing community serving students from the University of Georgia.

Casey Schaefer | +1 214.979.6364 | casey.schaefer@cbre.com

UNDERWRITING & DUE DILIGENCE Please contact the individual below to answer questions regarding underwriting assumptions, comparables, expenses, and historical financial information or to obtain access to the comprehensive property and due diligence information available in the online Document Center.

Casey Schaefer | +1 214.979.6364 | casey.schaefer@cbre.com

OFFERS The property in this offering is available on an All Cash basis to qualified investors 3

FINANCING For detailed debt and equity quotes, contact the individual below.

Ben Roelke | +1 214.979.5609 | ben.roelke@cbre.com

1 5 4 - U N I T / 4 9 5 - B E D VA LU E A D D

STUDENT HOUSING COMMUNITY UNIVERSITY OF GEORGIA

TABLE OF CONTENTS EXECUTIVE SUMMARY PROPERTY DESCRIPTION F I N A N C I A L A N A LY S I S R E N T C O M PA R A B L E S UN IVE RSIT Y OVE RVIE W

4

1 5 4 - U N I T / 4 9 5 - B E D VA LU E A D D

STUDENT HOUSING COMMUNITY UNIVERSITY OF GEORGIA

EXECUTIVE SUMMARY

1 5 4 - U N I T / 4 9 5 - B E D VA LU E A D D

STUDENT HOUSING COMMUNITY UNIVERSITY OF GEORGIA

E XC LU S I V E E N G A G E M E N T CBRE's National Student Housing Team invites you to review The Redland, a studenthousing offering located near the University of Georgia. The Redland offers 154 units and 495 beds and is available to qualified investors on a free and clear basis.

INVESTMENT SUMMARY

PRICE

TERMS

TOTAL UNITS

TOTAL BEDS

YEAR BUILT

PRICED BY MARKET

ALL CASH

154

495

1987

TOTAL AVERAGE UNIT RESIDENTIAL SF SIZE

159,806 SF 6

E x ecutive S ummary

1,038 SF

PRELEASED OCCUPANCY (AS OF 7/31/17)

AVERAGE MARKET RENT PER BED

AVERAGE MARKET RENT PER SF

99%

$441

$1.36

1 5 4 - U N I T / 4 9 5 - B E D VA LU E A D D

STUDENT HOUSING COMMUNITY UNIVERSITY OF GEORGIA

LOCATION The Redland is located just over one mile south of The University of Georgia in Athens, Georgia. Adjacent to the university golf course, the property offers residents convenient access to campus via the Athens Transit system, the UGA Transit system, or a short drive. Located along Route 12 of the Athens Transit System (ATS), The Redland benefits from two shuttle bus pickups at the property, arriving every 15 minutes beginning at 7:00am and running through 6:30pm in the evening during the academic year. After the ATS stops running each day, the East West Night route runs back and forth from campus to the property every 20 minutes from 6:15pm to 1:15am each morning. The property’s location off of Highway 78 makes it easy for residents to travel in and around Athens and as well as making a trip to the Athens-Ben Epps Airport only a few minutes away.

HIG

A HW

8 Y 7 RIVERBEND

PK

W

Y

U N I V E RS IT Y O F G EO RG I A G O LF COU RS E 7 E x ecutive S ummary

1 5 4 - U N I T / 4 9 5 - B E D VA LU E A D D

STUDENT HOUSING COMMUNITY UNIVERSITY OF GEORGIA

INVESTMENT HIGHLIGHTS E X T E N S I V E C A P I TA L I N V E S T M E N T B Y CURRENT OWNERSHIP Since taking over the asset in November 2014, current ownership has invested over $2 million into the property, addressing deferred maintenance and upgrading the common areas and unit interiors.

The clubhouse has been completely remodeled, which included a full redesign of the layout, new flooring, furniture, study room, lighting, and more. The outdoor sports complex was completely upgraded with a covered veranda and a resurfaced basketball court and football/ soccer field. The pool area has been thoroughly updated and boasts new furniture. Additionally, 65.5% of the units interiors have been fully renovated and received new furniture, generating significant rental premiums for the property, which is addressed in further detail in the next paragraph.

VA LU E - A D D O P P O R T U N I T Y Ownership has enacted a very successful upgrade program to the unit interiors that can be continued by new ownership. All unit interiors received new vinyl wood plank flooring in the common areas of the units, upgraded lighting, new sinks and resurfaced countertops as well as new furniture packages. The unit furniture package includes a sofa, sofa chair, coffee table, end table, bar stools and a dining table and chairs in the living area and full-size beds with memory foam mattresses, a night stand, dresser and a study desk and chair in each bedroom. 65.5% of units also received new stainless steel appliances. However, units that do not have the stainless steel appliances are not being charged a premium, allowing new ownership to increase rate immediately for the 2018-2019 academic year at no cost. Based on the premiums currently being achieved for the upgrades and furniture, new ownership could drive annual rental income by an additional $48,384 by continuing the current upgrade program throughout the remainder of the property.

8 E x ecutive S ummary

1 5 4 - U N I T / 4 9 5 - B E D VA LU E A D D

STUDENT HOUSING COMMUNITY UNIVERSITY OF GEORGIA

INVESTMENT HIGHLIGHTS

E XC E P T I O N A L A N D U N I Q U E A M E N I T Y PA C K A G E The Redland boasts one of the most comprehensive and unique amenity sets in Athens. Inside its newly renovated clubhouse is a well-designed TV lounge area with billiards, a study/conference room, a business center with Mac and PC computers and a 24-hour fitness center with new, state-of-the-art equipment.

Outside of the clubhouse, the newly upgraded pool area is adorned with new furniture, lush landscaping and grilling stations. The asset’s outdoor sports complex truly sets it apart from competitors. Accompanied by a covered veranda and picnic tables, ownership recently installed a completely new surface on the basketball court and a new turf field perfect for pickup games of football or soccer for residents.

THRIVING TIER I UNIVERSITY UGA continues to thrive as one of the best public schools in Georgia and throughout the country. The 2016-2017 school year was another record-breaking year for UGA with applicants breaking the previous records for grade point average, standardized test scores, number of AP or IB classes and diversity. UGA received nearly 23,000 applications with an impressively low 53% admittance rate, and the overall applicants’ GPA and SAT score averaged 3.98 and 1302, up from 3.91 and 1226, respectively, in 2015. According to the 2016 fact book published by UGA, enrollment grew to an all-time high of 36,574 students as of fall 2016. This marks four consecutive years of enrollment growth, with the university increasing enrollment by 2,055 students since 2012. The combination of the university’s strong academics, continued enrollment growth, and prestigious Division I athletics program will keep the university in extremely high demand for high school graduates for years to come.

9 E x ecutive S ummary

E X TR AO RDI N A RY PRO PERT Y PERFORMANCE The Redland has historically experienced excellent performance with its consistently strong occupancy driven by the property’s affordable price point and ability to provide extraordinary value in the market. Since current ownership took over the asset in November of 2014, the average monthly occupancy at The Redland has been 95.5%. During that same period, the property’s average effective rents have increased 13.5%, even as new product has entered the market. New ownership can look to The Redland’s strong historical track record and successful in-place upgrade program to confidently project future cash flows to manifest growth and stability.

1 5 4 - U N I T / 4 9 5 - B E D VA LU E A D D

STUDENT HOUSING COMMUNITY UNIVERSITY OF GEORGIA

AERIAL

N

ATH E N S/ B E N E PP S A I R P O RT

HIG

A HW

8 Y 7 RIVERBEND

PK

W

Y

U N I V E RS IT Y O F G EO RG I A G O LF CO U RS E 10 E x ecutive S ummary

1 5 4 - U N I T / 4 9 5 - B E D VA LU E A D D

STUDENT HOUSING COMMUNITY UNIVERSITY OF GEORGIA

AERIAL

N

RI

VE

E RB

N

D

PK

W

11 E x ecutive S ummary

Y

1 5 4 - U N I T / 4 9 5 - B E D VA LU E A D D

STUDENT HOUSING COMMUNITY UNIVERSITY OF GEORGIA

PROPERTY DESCRIPTION

1 5 4 - U N I T / 4 9 5 - B E D VA LU E A D D

STUDENT HOUSING COMMUNITY UNIVERSITY OF GEORGIA

PROPERTY SUMMARY

BUILDING & SITE DESCRIPTION ADDRESS

505 Riverbend Pkwy, Athens, GA 30605

NO. OF RESIDENTIAL UNITS

154

NO. OF BEDS

495

AVERAGE UNIT SQUARE FOOTAGE

1,038 SF

TOTAL RESIDENTIAL SQUARE FOOTAGE

159,806 SF

PRELEASE OCCUPANCY (AS OF 7/31/17)

99%

YEAR BUILT

1987

LAND AREA

22.00 Acres

LAND AREA DENSITY ZONING NO. OF BUILDINGS NO. OF BUILDINGS WITH NO UNITS NO. OF STORIES NO. OF ELEVATORS NO. OF LAUNDRY FACILITIES NO. OF ENTRANCES

7.00 Units per Acre RM-1 8 (seven three-story one two-story) 1 one story clubhouse/leasing center 3 story/2 story none Washer/Dryer In Each Unit 2

13 P roperty D escription

1 5 4 - U N I T / 4 9 5 - B E D VA LU E A D D

STUDENT HOUSING COMMUNITY UNIVERSITY OF GEORGIA

PROPERTY SUMMARY PROFORMA MARKET RENTAL RATE PER SF

$1.36

MARKET RENT PER BED

$441

EFFECTIVE GROSS INCOME

$2,514,043

OPERATING EXPENSES

$1,334,362

NET OPERATING INCOME BEFORE RESERVES

$1,179,681

CAPITAL RESERVES NET OPERATING INCOME AFTER RESERVES

$74,250 $1,105,431

PA R K I N G Surface lot

TYPE TOTAL SPACES

523 Spaces

CONSTRUCTION FOUNDATION

Conventional, reinforced, concrete, spread footings supporting wall and column loads

FRAMING

Wood framing

EXTERIOR MATERIALS

Painted masonite wood siding

WINDOWS

Single hung units with metal frames and double-panel glazing, exterior screens

ROOF CONSTRUCTION

Hipped roofs finished with asphalt composition shingles over asphalt-saturated paper

ROOF AGE STAIRS/CORRIDORS CONSTRUCTION DETAIL

Exterior stairs: steel with open risers and concrete-filled, steel pan treads

BALCONY CONSTRUCTION DETAIL

Ground - concrete; upper level - wood-framed sheather with plywood and are topped with concrete

ELEVATOR DESCRIPTION

N/A

14 P roperty D escription

1 5 4 - U N I T / 4 9 5 - B E D VA LU E A D D

STUDENT HOUSING COMMUNITY UNIVERSITY OF GEORGIA

PROPERTY SUMMARY

PERSONNEL NO.

FULL-TIME | PART-TIME

PROPERTY MANAGER

1

FT

ASSISTANT MANAGER - SENIOR

1

FT

LEASING MANAGER

1

FT

TITLE

MECHANICAL /E LECTRICAL /PLUMBING HEATING

Electric furnace/fan coil units

LEASING CONSULTANT

2

PT

AIR CONDITIONING

Pad-mounted condensing units with R-22 as refrigerant

MAINTENANCE SUPERVISOR

1

FT

WATER HEATER

30-40 gallon, electric, water heater

MAINTENANCE TECHNICIAN

1

FT

FIRE PROTECTION

Portable fire extinguishers and battery operated smoke detectors

GROUNDSKEEPER

1

FT

TOTAL EMPLOYEES

8

UTILITIES UTILITY/SERVICE

PROVIDER

PAID BY

Georgia Power Company

Tenant (Optional $30 cap)

Georgia National Gas

WATER/SEWER TRASH REMOVAL

U N I T S P E C I F I C AT I O N S REFRIGERATOR

Yes

Owner

MICROWAVE

Yes

City of Athens

Owner

STOVE/OVEN

Electric range

City of Athens?

Owner

DISHWASHER

Yes

CABLE

Charter Communications

Owner

DISPOSAL

Yes

TELEPHONE

Charter Communications

Owner

CABINET MATERIALS

INTERNET

Charter Communications

Owner

COUNTERTOP MATERIALS

ELECTRICITY GAS

INTERNET BANDWIDTH SPEED

60 MBPS Download

FLOORING MATERIALS 15

P roperty D escription

Composite wood Ceramic tile Wood laminate flooring

1 5 4 - U N I T / 4 9 5 - B E D VA LU E A D D

STUDENT HOUSING COMMUNITY UNIVERSITY OF GEORGIA

PROPERTY SUMMARY TA X E S PROPERTY ID NUMBER

181 010B

2016 ASSESSED VALUE

$12,526,805

MILLAGE RATE (PER $1,000)

$33.95

ASSESSMENT RATIO

40.0%

DEPOSITS ITEM APPLICATION FEE

$20

ADMINISTRATIVE FEE

$100

DEPOSITS PET DEPOSIT (NON-REFUNDABLE)

16 P roperty D escription

AMOUNT

$0 $250

PET FEE PER MONTH

$15

UTILITY SET-UP FEE (NEW LEASE)

$99

UTILITY SET-UP FEE (RENEWAL)

$55

1 5 4 - U N I T / 4 9 5 - B E D VA LU E A D D

STUDENT HOUSING COMMUNITY UNIVERSITY OF GEORGIA

COMMUNITY AMENITIES 24-Hour Fitness Center

Renovated Clubhouse

24-Hour Computer Lab

Turf Football Complex

Turf Soccer Complex

Dog Park

Athens Transit Stop

Resort-Style Swimming Pool

Clubhouse with Billiards and TV Lounge

University Bus Stop

Pool Side BBQ Grills

Business Center

Renovated Office

Basketball, and Volleyball Courts

17 P roperty D escription

1 5 4 - U N I T / 4 9 5 - B E D VA LU E A D D

STUDENT HOUSING COMMUNITY UNIVERSITY OF GEORGIA

UNIT AMENITIES Stainless Steel Appliances*

Central Air/Heating

Cable TV and Internet Included

Fully-Furnished

Vaulted and 9-foot Ceilings*

Wood-Burning Fireplaces

Full-Size Washer/Dryer Included

Private Baths with Dual Vanities

*in select units

Balconies and Patios

Wood-Style Flooring

Custom Furniture Package

Utility Package Included*

18 P roperty D escription

1 5 4 - U N I T / 4 9 5 - B E D VA LU E A D D

STUDENT HOUSING COMMUNITY UNIVERSITY OF GEORGIA

UNIT MIX MARKET

BED COUNT

UNIT COUNT

UNIT MIX

SF

T O TA L S F

PER BED

PER SF

M O N T H LY RENT

1 BED | 1.0 BATH

1

1

0.5%

776 SF

776 SF

$940

$1.21

$940

2 BED | 1.0 BATH

36

18

8.4%

745 SF

13,410 SF

$485

$1.30

$17,460

2 BED | 1.0 BATH TOWNHOUSE

22

11

5.3%

776 SF

8,536 SF

$505

$1.30

$11,110

2 BED | 1.0 BATH RENOVATED

60

30

14.0%

745 SF

22,350 SF

$519

$1.39

$31,140

4 BED | 2.0 BATH

104

26

19.8%

1,214 SF

31,564 SF

$398

$1.31

$41,392

4 BED | 2.0 BATH TOWNHOUSE

8

2

1.9%

1,523 SF

3,046 SF

$480

$1.26

$3,840

4 BED | 2.0 BATH RENOVATED

264

66

50.1%

1,214 SF

80,124 SF

$425

$1.40

$112,200

TOTALS | AVERAGES

495

154

100%

1,038 SF

159,806 SF

$441

$1.36

$218,082

BED DESCRIPTION

1 Bed 0.5% 2 Bed 27.7% 4 Bed 71.8%

19 P roperty D escription

1 5 4 - U N I T / 4 9 5 - B E D VA LU E A D D

STUDENT HOUSING COMMUNITY UNIVERSITY OF GEORGIA

FLOOR PLANS 1 B | 1 B

776 SF

2 B | 1 B

745 SF

2 B | 1 B

776 SF

20 P roperty D escription

1 5 4 - U N I T / 4 9 5 - B E D VA LU E A D D

STUDENT HOUSING COMMUNITY UNIVERSITY OF GEORGIA

FLOOR PLANS 4 B | 2 B

1,214 SF

4 B | 2 B TOWNHOME

1,523 SF

21 P roperty D escription

1 5 4 - U N I T / 4 9 5 - B E D VA LU E A D D

STUDENT HOUSING COMMUNITY UNIVERSITY OF GEORGIA

F I N A N C I A L A N A LY S I S

1 5 4 - U N I T / 4 9 5 - B E D VA LU E A D D

STUDENT HOUSING COMMUNITY UNIVERSITY OF GEORGIA

OPERATING FORECAST

This Page Left Intentionally Blank

You are solely responsible for independently verifying the information in this Memorandum. ANY RELIANCE ON IT IS SOLELY AT YOUR OWN RISK. 23 F inancial A nalysis

1 5 4 - U N I T / 4 9 5 - B E D VA LU E A D D

STUDENT HOUSING COMMUNITY UNIVERSITY OF GEORGIA

GENERAL REVENUE CONSIDERATIONS

This Page Left Intentionally Blank

You are solely responsible for independently verifying the information in this Memorandum. ANY RELIANCE ON IT IS SOLELY AT YOUR OWN RISK. 24 F inancial A nalysis

1 5 4 - U N I T / 4 9 5 - B E D VA LU E A D D

STUDENT HOUSING COMMUNITY UNIVERSITY OF GEORGIA

This Page Left Intentionally Blank

You are solely responsible for independently verifying the information in this Memorandum. ANY RELIANCE ON IT IS SOLELY AT YOUR OWN RISK. 25 F inancial A nalysis

1 5 4 - U N I T / 4 9 5 - B E D VA LU E A D D

STUDENT HOUSING COMMUNITY UNIVERSITY OF GEORGIA

CASH FLOW FORECAST

This Page Left Intentionally Blank

26 F inancial A nalysis

1 5 4 - U N I T / 4 9 5 - B E D VA LU E A D D

STUDENT HOUSING COMMUNITY UNIVERSITY OF GEORGIA

R E N T CO M PA R A B L E S

1 5 4 - U N I T / 4 9 5 - B E D VA LU E A D D

STUDENT HOUSING COMMUNITY UNIVERSITY OF GEORGIA

RENT COMPARABLES MAP

1

3

4 6 5

8 9

PROPERTY 7

THE REDLAND 1

THE CONNECTION AT ATHENS

2

ATHENS RIDGE

3

THE WOODLANDS OF ATHENS

4

THE RESERVE AT ATHENS

5

THE PARK AT ATHENS HILLSIDE

6

POLO CLUB

7

RIVER CLUB

8

THE TOWNHOMES AT RIVER CLUB

9

THE PARK AT LAKESIDE

2

28 R ent C omparables

1 5 4 - U N I T / 4 9 5 - B E D VA LU E A D D

STUDENT HOUSING COMMUNITY UNIVERSITY OF GEORGIA

RENT COMPARABLES SUMMARY PROPERTY

YEAR BUILT

TOTAL BEDS

TOTAL UNITS

% OCCUPIED

AVG. SIZE

MARKET RENT

MARKET PSF

1

THE CONNECTION AT ATHENS

2008

876

341

96%

1,044

$521

$1.28

2

ATHENS RIDGE

2014

810

190

100%

2,250

$509

$0.96

3

THE WOODLANDS OF ATHENS

2003

840

350

100%

1,219

$488

$0.96

4

THE RESERVE AT ATHENS

1999

612

200

100%

1,152

$472

$1.25

5

THE PARK AT ATHENS HILLSIDE

1985

480

120

99%

1,200

$469

$1.56

6

POLO CLUB

1996

573

168

96%

1,268

$441

$1.18

7

RIVER CLUB

1996

794

266

99%

1,184

$432

$1.09

8

THE TOWNHOMES AT RIVER CLUB

1998

340

100

99%

1,360

$400

$1.00

9

THE PARK AT LAKESIDE

1991

772

242

100%

1,034

$398

$1.23

3,299

1,104

99%

1,204

$460

$1.14

495

154

95%

1,039

$441

$1.37

Total | Average The Redland

1987

1

2

3

4

6

7

8

9

29 R ent C omparables

5

1 5 4 - U N I T / 4 9 5 - B E D VA LU E A D D

STUDENT HOUSING COMMUNITY UNIVERSITY OF GEORGIA

RENT COMPARABLES R E D L A N D | 5 0 5 R I V E R B E N D P K W Y | AT H E N S , G A 3 0 6 0 5 YEAR BUILT

1987

PRE-LEASED OCCUPANCY

99%

OCCUPANCY

95%

MARKET RENT TYPE

UNITS

BEDS

SF

PER BED

PER SF

1 BED / 1.0 BATH

1

1

776

940

$1.21

2 BED / 1.0 BATH

18

36

745

485

$1.30

2 BED / 1.0 BATH RENOVATED

30

60

745

519

$1.39

2 BED / 1.0 BATH

11

22

776

505

$1.30

4 BED / 2.0 BATH

26

104

1214

398

$1.31

4 BED / 2.0 BATH RENOVATED

66

264

1214

425

$1.40

4 BED / 2.0 BATH TOWNHOME

2

8

1523

480

$1.26

154

495

1038

$441

$1.36

TOTALS/AVERAGES

T H E C O N N E C T I O N AT AT H E N S | 25 5 T H E P R E S E R V E D R I V E | AT H E N S , G A 3 0 6 0 6 YEAR BUILT

2008

PRE-LEASED OCCUPANCY

99%

OCCUPANCY

100%

MARKET RENT TYPE

UNITS

BEDS

SF

PER BED

PER SF

1 BED | 1 BATH

60

60

601

$890

$1.48

2 BED | 2 BATH

118

236

860

$560

$1.30

3 BED | 3 BATH

72

216

1,173

$480

$1.23

4 BED | 4 BATH

91

364

1,472

$460

$1.25

341

876

1,044

$521

$1.28

TOTAL | AVERAGE

30 R ent C omparables

1 5 4 - U N I T / 4 9 5 - B E D VA LU E A D D

STUDENT HOUSING COMMUNITY UNIVERSITY OF GEORGIA

RENT COMPARABLES AT H E N S R I D G E | 1 0 0 0 R E D W O O D L A N E | AT H E N S , G A 3 0 6 0 6 YEAR BUILT 2014

PRE-LEASED OCCUPANCY

100%

OCCUPANCY

100%

MARKET RENT TYPE

UNITS

BEDS

SF

PER BED

PER SF

4 BED | 4 BATH

140

560

2,250

$509

$0.90

5 BED | 5 BATH

50

250

2,250

$509

$1.13

TOTAL | AVERAGE

190

810

2,250

$509

$0.96

OCCUPANCY

100%

T H E W O O D L A N D S O F AT H E N S | 4 9 0 B A R N E T T S H O A L S R O A D | AT H E N S , G A 3 0 6 0 5 YEAR BUILT

2003

PRE-LEASED OCCUPANCY

N/A

MARKET RENT TYPE

UNITS

BEDS

SF

PER BED

PER SF

1 BED | 1 BATH

70

70

640

$775

$1.21

2 BED | 2 BATH

70

140

1,152

$450

$0.78

2 BED | 2 BATH

70

140

1,126

$450

$0.80

3 BED | 3 BATH

70

210

1,443

$425

$0.88

4 BED | 4 BATH

70

280

1,736

$500

$1.15

350

840

1,219

$488

$0.96

TOTAL | AVERAGE

31 R ent C omparables

1 5 4 - U N I T / 4 9 5 - B E D VA LU E A D D

STUDENT HOUSING COMMUNITY UNIVERSITY OF GEORGIA

RENT COMPARABLES T H E R E S E R V E AT AT H E N S | 1 7 5 I N T E R N AT I O N A L D R I V E | AT H E N S , G A 3 0 6 0 5 YEAR BUILT

1999

PRE-LEASED OCCUPANCY

100%

OCCUPANCY

100%

MARKET RENT TYPE

UNITS

BEDS

SF

PER BED

PER SF

2 BED | 2 BATH

94

188

872

$520

$1.19

4 BED | 4 BATH

106

424

1,400

$450

$1.29

TOTAL | AVERAGE

200

612

1,152

$472

$1.25

T H E PA R K AT AT H E N S H I L L S I D E | 425 R I V E R B E N D P K W Y | AT H E N S , G A 3 0 6 0 5 YEAR BUILT

1985

PRE-LEASED OCCUPANCY

100%

OCCUPANCY

96%

MARKET RENT TYPE

UNITS

BEDS

SF

PER BED

PER SF

4 BED | 4 BATH

24

96

1,200

$365

$1.22

4 BED | 4 BATH

96

384

1,200

$495

$1.65

TOTAL | AVERAGE

120

480

1,200

$469

$1.56

32 R ent C omparables

1 5 4 - U N I T / 4 9 5 - B E D VA LU E A D D

STUDENT HOUSING COMMUNITY UNIVERSITY OF GEORGIA

RENT COMPARABLES P O LO C LU B | 1 1 0 I N T E R N AT I O N A L D I V E | AT H E N S , G A 3 0 6 0 5 YEAR BUILT

1996

PRE-LEASED OCCUPANCY

92%

OCCUPANCY

80%

MARKET RENT TYPE

UNITS

BEDS

SF

PER BED

PER SF

2 BED | 2 BATH

24

48

780

$499

$1.28

3 BED | 3 BATH

17

51

1,221

$465

$1.14

3 BED | 3 BATH TOWNHOME

34

102

1,221

$465

$1.14

4 BED | 4 BATH

31

124

1,380

$419

$1.21

4 BED | 4 BATH TOWNHOME

62

248

1,440

$425

$1.18

TOTAL | AVERAGE

168

573

1,268

$441

$1.18

R I V E R C LU B | 1 0 0 5 M A C O N H I G H WAY | AT H E N S , G A 3 0 6 0 6 YEAR BUILT

1996

PRE-LEASED OCCUPANCY

86%

OCCUPANCY

100%

MARKET RENT TYPE

UNITS

BEDS

SF

PER BED

PER SF

2 BED | 2 BATH

108

216

987

$475

$0.96

3 BED | 3 BATH TOWNHOME

54

162

1,167

$445

$1.14

4 BED | 4 BATH

104

416

1,398

$405

$1.16

TOTAL | AVERAGE

266

794

1,184

$432

$1.09

33 R ent C omparables

1 5 4 - U N I T / 4 9 5 - B E D VA LU E A D D

STUDENT HOUSING COMMUNITY UNIVERSITY OF GEORGIA

RENT COMPARABLES T H E TO W N H O M E S AT R I V E R C LU B | 4 0 0 T I M OT H Y R O A D | AT H E N S , G A 3 0 6 0 6 YEAR BUILT

1998

PRE-LEASED OCCUPANCY

N/A

OCCUPANCY

99%

MARKET RENT TYPE

UNITS

BEDS

SF

PER BED

PER SF

3 BED | 3 BATH TOWNHOME

60

180

1,235

$405

$0.98

4 BED | 4 BATH TOWNHOME

40

160

1,548

$395

$1.02

TOTAL | AVERAGE

100

340

1,360

$400

$1.00

N/A

OCCUPANCY

T H E PA R K L A K E S I D E | 1 0 0 0 L A K E S I D E D R I V E | AT H E N S , G A 3 0 6 0 5 YEAR BUILT

1991

PRE-LEASED OCCUPANCY

100%

MARKET RENT TYPE

UNITS

BEDS

SF

PER BED

PER SF

2 BED | 1 BATH

98

196

790

$469

$1.19

4 BED | 2 BATH

144

576

1,200

$374

$1.25

TOTAL | AVERAGE

242

772

1,034

$398

$1.23

34 R ent C omparables

1 5 4 - U N I T / 4 9 5 - B E D VA LU E A D D

STUDENT HOUSING COMMUNITY UNIVERSITY OF GEORGIA

UNIVERSIT Y OVERVIEW

1 5 4 - U N I T / 4 9 5 - B E D VA LU E A D D

STUDENT HOUSING COMMUNITY UNIVERSITY OF GEORGIA

THE UNIVERSITY OF GEORGIA The University of Georgia is the nation’s first chartered state college with 36,130 students and over 10,300 faculty and staff as of fall 2015. UGA has consistently been ranked as one of the “Best Colleges” in the country by U.S. News & World Report. In addition, a plethora of accolades from multiple magazines and newspapers makes UGA a top destination for students around the country. The university offers over 140 undergraduate degrees, 140 Master’s degrees, and 100 doctoral degrees. The main campus consists of 460 buildings on 762 acres (including extension campuses and research facilities) and consists of more than 41,500 acres across 30 counties in Georgia.

will serve over 4,000 students every day. The $48 million Science Learning Center is set to open late 2016 and will be 120,000 square feet of modern learning space, including 33 separate undergraduate instructional labs and two 280-seat lecture halls. This is part of the universities “2020 Plan” to increase the enrollment of STEM disciplines by 50%, or about 3,000 students.

ACCO L A DES UGA is ranked 21st among the nation's top public universities in America in U.S. News & World Report's Best Colleges 2016 edition.

The University of Georgia has a very successful NCAA Division I athletics program, with nine men’s varsity sports and twelve women’s varsity sports.

The school has won 21 national championships, including nine since 1999.

With more than 280,000 living alumni and countless supporters in the region, the city of Athens nearly doubles in population every time the Georgia Bulldogs football team plays at home. With a $25 million expansion completed in 2003, Sanford Stadium added a second upper deck on the north side bringing the new stadium capacity to 92,020.

UGA is ranked 12th in “100 Best Values in Public Colleges” by Kiplinger Magazine 2016.

UGA is ranked No. 18 on the Forbes "Top 25 Public Colleges 2015" list.

UGA is ranked 10th among public universities and 24th overall in the 2015 New York Times College Access Index.

The University of Georgia is ranked No. 3 in Washington Monthly magazine's list of "Best Bang for the Buck Colleges in the Southeast 2015" for being one of the best values for students.

UGA has been a major recipient of the increase in sponsored research at Georgia's research universities. UGA's research has grown from $400 to over $800 million since 1990. Significant areas of research include biotechnology, genetics, pharmaceuticals, and veterinary medicines. UGA ranks first in the nation in total spending for research and development among universities that have neither a medical school nor an engineering school. Since 1988, The University of Georgia Research Foundation has licensed 28 startup companies.

In its 2016 edition U.S. News & World Report ranks the Terry College of Business No. 29 for best undergraduate business school.

The Terry College MBA program ranks 19th among public institutions and No. 36 overall in the 2015 Forbes ranking of America's top MBA programs.

The University of Georgia has also experienced tremendous amount of capital infusion over the last couple of years, with eight new major construction projects on campus. These projects include the new Bolton Dining Commons, Veterinary Medical Center, Center for Molecular Medicine, and the indoor athletic facility. Capital projects currently under construction include the $140 million Terry College of Business, which

Nerdwallet.com named Athens as #7 on its list of "The Best Places in Georgia for Job Seekers"—citing its stable employment and new career opportunities (2014) #4 of the "10 Great College Towns to Retire to" Kiplinger (July 2014) 36

U niversity O verview

1 5 4 - U N I T / 4 9 5 - B E D VA LU E A D D

STUDENT HOUSING COMMUNITY UNIVERSITY OF GEORGIA

SCHOOLS & COLLEGES College of Agricultural and Environmental Sciences College of Education College of Engineering College of Environment and Design College of Family and Consumer Sciences College of Pharmacy College of Public Health College of Veterinary Medicine Franklin College of Arts and Sciences Graduate School Grady College of Journalism and Mass Communication Odum School of Ecology School of Law School of Public and International Affairs School of Social Work Terry College of Business Warnell School of Forestry and Natural Resources

37 U niversity O verview

1 5 4 - U N I T / 4 9 5 - B E D VA LU E A D D

STUDENT HOUSING COMMUNITY UNIVERSITY OF GEORGIA

SUPPLY AND DEMAND The University of Georgia has experienced strong enrollment growth over the last 11 years, growing by 7.3% since 2005. Currently 98% of freshmen live on campus; however, only 33% of undergraduates live on-campus, leaving approximately 18,456 students seeking off-campus housing facilities. In addition, with increasing enrollment trends, the supply and demand imbalance is expected to grow. UGA currently has a 7,620-bed capacity for undergraduates and a 1,300 graduate/family-bed capacity on-campus.

UGA has an agreement with the Athens-Clarke government allowing students and faculty to ride the Athens Transit buses fare-free, connecting offcampus housing options to the University. In addition, the University of Georgia has a transportation system that allows for the free and easy movement of students on and around campus. % WHO LIVE IN COLLEGE-OWNED, -OPERATED, OR -AFFILIATED HOUSING

ENROLLMENT DATA TOTAL ENROLLMENT

NUMBER CHANGE

PERCENT CHANGE

2012

34,519

-297

-0.85%

26,259

-0.43%

2013

34,536

17

0.05%

26,278

0.07%

SCHOOL YEAR

UNDERGRADUATE ENROLLMENT

UG % CHANGE

GRADUATE ENROLLMENT

GRAD % CHANGE

FRESHMEN

UNDERGRADUATES

8,260

-2.17%

98%

28%

8,258

-0.02%

98%

28%

2014

35,197

661

1.91%

26,882

2.30%

8,315

0.69%

98%

36%

2015

36,130

933

2.65%

27,547

2.47%

8,583

3.22%

98%

33%

2016

36,574

444

1.23%

27,951

1.47%

8,623

0.47%

N/A

N/A

ENROLLMENT 37,000 36,500

Headcount

36,000 35,500 35,000 34,500 34,000 33,500 33,000

2012

2013

2014

2015

2016

ACADEMIC YEAR S o u r c e : h t t p : / / o i r. u g a . e d u / u p l o a d s / C D S _ 2 0 1 5 - 2 0 1 6 . p d f 38 U niversity O verview

OFFERING MEMORANDUM

505 RIVERBEND PKWY AT H E N S , G A 3 0 6 0 5

1 5 4 - U N I T / 4 9 5 - B E D VA LU E A D D | S T U D E N T H O U S I N G C O M M U N I T Y | U N I V E R S I T Y O F G E O R G I A

E XC LU S I V E A D V I S O R S C B R E N AT I O N A L S T U D E N T H O U S I N G

AT L A N TA M U LT I F A M I LY T E A M

JACLYN FITTS Director of Student Housing +1 214 979 6524 jaclyn.fitts@cbre.com

SHEA CAMPBELL Senior Vice President +1 404 923 1226 shea.campbell@cbre.com

WILLIAM VONDERFECHT Associate Director of Student Housing +1 214 979 6194 william.vonderfecht@cbre.com

PAUL BERRY Vice Chairman +1 404 923 1425 sean.cunningham@cbre.com

CASEY SCHAEFER Associate +1 214 979 6364 casey.schaefer@cbre.com

Capital Markets | National Student Housing