Subject Property Analysis

North Platte Apartments (Subject) is a proposed new construction four-story elevatorserviced building with 75 market-rate units located at Lake Drive, Highway 83 and Walker Drive. The Subject is located in the south quadrant of North Platte. The community of North Platte is located western side of Nebraska on Interstate 80. The site is accessible from the east side of Highway 83. Highway 83 is a four-lane road that provides access throughout the central portion of Lincoln County. Interstate 80 is accessible via Highway 83 to the north and provides access to the entire state of Nebraska with traffic counts over 18,000 per day. Overall, access and traffic flow to the Subject site are considered excellent.

Property Site/Location Analysis Category Rating Proximity to Amenities 1 2 3 Proximity to Interstates/Highways 1 2 3 Condition 1 2 3 Apartment Amenities 1 2 3 Communal Amenities 1 2 3 Total* ( 25 Points Available ) 23

4 4 4 4 4 5 5 5 5 5

Source: Opinion of HCA Representative

Unit Mix/Availability/Pricing* The Subject will consist of 55 one-bedroom units and 20 two-bedroom units. Upon completion, the Subject will exhibit excellent condition. The unit mixes, unit sizes and asking rents are detailed below:

Proposed Beds Baths Size Price Number of Units Price Per Square Foot 1 1 671 $ 650.00 16 $ 1.01 1 1 750 $ 675.00 36 $ 0.90 1 1 865 $ 700.00 3 $ 0.78 2 2 997 $ 775.00 4 $ 0.75 2 2 1084 $ 800.00 16 $ 0.69 Competitive Set Average Price Per Square Foot 1 Bedroom/1 Bath per Month $ 0.91 2 Bedroom/2 Bath per Month $ 0.72 Competitive Set Average Monthly Price 1 Bedroom/1 Bath per Month $ 616.00 2 Bedroom/2 Bath per Month $ 738.75 When considering the extreme lack of new product, current condition of competitive properties, markets vacancy rate of 4.5% and the projected marginal population decline, it is the opinion of HCA that the proposed property has the opportunity to maintain the following occupancy percentage over the next five years:

Proposed Property Projected Proposed Property Projected Revenue ( Occupancy w/o rent increases ) Year One 80.5% $ 509,082.00 Year Two 83.5% $ 528,054.00 Year Three 87.0% $ 550,188.00 Year Four 90.0% $ 569,160.00 Year Five 93.5% $ 591,294.00 When considering the extreme lack of new product, current condition of competitive properties, markets five-year average rental rate growth of 4.3% for one-bedrooms units, markets five-year average rental rate growth of 3.75% for two-bedrooms units and the projected marginal population decline, it is the opinion of HCA that the proposed property has the opportunity to grow rental rates over the next five years and obtain revenue as follows:

Proposed Property Projected Occupancy Year One 80.5% Year Two 83.5% Year Three 87.0% Year Four 90.0% Year Five 93.5% Proposed Property Projected Revenue ( with rent increases ) $ 509,082.00 $ 543,895.62 $ 569,444.58 $ 591,926.40 $ 614,945.76