TIAA CREF RFP Response - Laramar by The Laramar Group

BISHOP’S VIEW// MANAGEMENT SERVICES PRESENTATION

1.0 CORPORATE OVERVIEW……………………………………………………………………04

TABLE OF CONTENTS

2.0 EXPERIENCE…………..………………………………………………………………………23

3.0 SOFTWARE, MARKET DATA AND REPORTING……………………………………….29 4.0 COMPLIANCE……………………………………….…………………………………………33 5.0 PROJECT TEAM………………………………………………………………………………..36 6.0 TAKEOVER AND PROPERTY PERFORMANCE…………………………………………48 7.0 MARKETING STRATEGY……………………………………………………………………53 8.0 PRICING AND CLIENT REFERENCES…………………………………………………….64 REPORTING SUPPLEMENT Operations Loss Prevention Checklist Standard Property Charges Market Survey

February 10, 2015 Ms. Kathy Clark TIAA-CREF Asset Management 1 Financial Plaza, 19th Floor Hartford, CT 06103 Re:

Request for Proposal Property Management/Leasing Services; Bishopâ&#x20AC;&#x2122;s View, Cherry Hill, NJ

INTRODUCTION

Dear Kathy: Thank you for the opportunity to work with you. We are pleased to present the following information to you for property management of Bishopâ&#x20AC;&#x2122;s View in Cherry Hill, NJ. We are confident that once you review the information provided, you will agree that Laramar is a strong choice for these assignments. Everyone at Laramar is excited about this opportunity. Our goal is to exceed your expectations on these assignments and continue to grow our relationship. If you have any questions on any aspect of this presentation, please let me know and we can discuss in detail. Sincerely,

Steve Boyack Senior Vice President Asset Management

1.0 CORPORATE OVERVIEW

1.0 CORPORATE OVERVIEW SUMMARY OF FIRM // LEVERAGING TECHNOLOGY // NATIONAL OPERATING PLATFORM // QUALITY PROGRAMS

Founded in 1989, Laramar has grown from a small real estate investment company to a vertically integrated and distinguished national real estate investment and property management corporation with a multi-billion dollar portfolio. However, we haven’t forgotten the basic reason for our success: our people and the relationships they nurture. Our foundation is built upon a highly experienced, well-trained management team of real estate professionals who love their work and honor their commitment to both our clients and our residents. From acquisitions to accounting, property management to finance, each team member executes their role with strong dedication. The result is a team that is diligent and focused, understanding the needs of its clients and residents, and working tirelessly to build positive relationships and exceed expectations on every front.

Over two decades of commitment and quality

1.1 SUMMARY OF FIRM

THE LARAMAR GROUP, LLC // THE LARAMAR DIFFERENCE

For over 25 years, Laramar has delivered an unparalleled level of service to the real estate industry. We have a large national platform that provides a comprehensive suite of both investment and asset management services, including: multifamily property management, development consulting, sustainability consulting, thirdparty revenue management, construction management and due diligence. Laramar has specialized in managing and acquiring multifamily properties throughout its entire company history. Our success with these properties is achieved through the application of our Operating Platform or strategic re-positioning of assets through value-add projects. The company manages Class A to C properties, from high-rise urban to suburban garden-style. Laramar’s portfolio consists of over 30,000 units nationwide, both owned or third party managed. We have a presence in over 20 markets from coast to coast and corporate offices in Chicago and Denver, with over 800 employees between our corporate offices and the field.

We manage for a select group of clients such as AEW, AIG, Colony Realty Partners, Grosvenor, Hines, Prudential, TIAACREF and others. Attracting Top Talent Through a Top-Notch Brand A good, authentic brand that aligns with company values is attractive to not only residents, but also top talent. People care about their company’s values and seek out institutions with a reputation for quality and integrity. Laramar’s foundation of tenured professionals contributes to our place as a top tier, institutional property management company. The team’s experience has allowed us to build a nationwide platform of “best practices”, including differentiating ideas in technology, training, marketing and reporting that are implemented across our portfolio. We utilize the collective experience of our associates, as well as the data that we have accumulated over our 25 year history to help identify and develop new opportunities. By analyzing historical, current and predictive views of our business operations, we achieve a competitive market advantage. Laramar’s entrepreneurial spirit is seen at every level of the company. From our corporate offices to our associates in the field, each team member is given a voice and encouraged to contribute. Our Mission Laramar strives to set a standard in apartment living. Every resident can be confident that our on-site and corporate staff strive to provide quality and consistent services to each resident in the community. At the end of the day, this is a people business and we feel that the ultimate success of every investment lies in the people on the ground. Laramar prides itself on its employees, selected for their experience and creativity, distinguished by professionalism and the ability to offer exemplary service at every level. Our meticulous attention to detail means outstanding living spaces with unwavering maintenance standards and personalized service that will exceed expectations. We continually strive to make a resident’s experience second to none. 5

OPERATIONS // MULTIFAMILY PROPERTY MANAGEMENT

The Laramar Difference

1.1 MULTI-FAMILY PROPERTY MANAGEMENT

Laramar takes pride in its people and invests in the best talent in the industry. We have developed a detailed network of communication and support throughout our national portfolio. Our systems are built to track, analyze, report and deliver quality results for each property we manage, and our associates are trained to effectively lead, supervise, train and discipline. Each on-site team is supported by a Regional Vice President or Regional Manager, who oversees each asset with meticulous care. These managers are supported by our corporate offices, which offer all back of house functions that are necessary for our teams to succeed. Our corporate offices are strategically placed nationwide to offer easy access and communication with our on-site teams. The result is a strong organization of tenured professionals who are able to respond to opportunities across the country with a targeted, thoughtful and progressive approach. Laramar’s consistent National Operating Platform utilizes the best systems, programs, reporting and technology in the multifamily industry. Management//Community Our success as an investment and property management company begins with our people and the technology we deploy at every level of our organization. This successful combination drives performance and NOI, and delivers exceptional results. When reviewing our most successful projects, a few key metrics stand out: Team – The most important factor in the success of any project is the selection and training of the team. From the manager to the leasing agent to the maintenance team on the property. They will set the standard for the delivery of services and feeling of community at the property. This is critical in creating leasing velocity, improving resident retention and driving pricing power at renewal. Entrepreneurialism – A consistent focus on the bottom line encourages team members at all levels to look for opportunities to reduce expenses, maximize effective rents and create other income opportunities. Driving NOI is our number one priority.

Superior Customer Service – One of the greatest ways to distinguish a property is through exceptional customer service at the speed of now. Consistent, from the initial tour to the day of move out. Community – People want to be part of something. Not often discussed as part of the leasing process yet critical in the decision making for prospective and renewing residents. Many factors contribute to the sense of community, from amenity programming to the staff’s relatability to the target demographic’s interest and needs. Product – Delivering a high quality experience from the beginning. From premier curb appeal to an immaculate leasing office and unit interiors that relate to the project’s demographic, everything matters. Business Intelligence Laramar realizes that data is right, every time. It has neither an opinion nor an agenda, and we have learned how to empower it to make us successful. Laramar leverages technology to maximize our marketing analytics, and we understand how to collect, analyze and manipulate data to realize which assets are performing the best, and which areas of our business need improvement. Simply put, we employ a combination of data, systems, software and people to impact net operating income. This sophisticated approach is applied using the following principles: Plan, Allocate, Measure and Manage. Laramar utilizes extensive and detailed reporting systems to help us maximize our management capabilities and ensure the success of each property we are involved in. Laramar also utilizes iDashboards. This is a custom cloud application which allows us to create and monitor multiple Key Performance Indicators throughout our portfolio in an on demand setting. By analyzing property performance by Region, MSA, Client and Ownership, we can instantly identify and recognize any key outliers and monitor predictive indicators to stay on top of property performance on a daily basis. 6

The Laramar Difference

1.1 MULTI-FAMILY PROPERTY MANAGEMENT

National Operating Platform Laramar’s standardized National Operating Platform is utilized across the portfolio and leverages technology whenever possible in order to drive NOI at the property level. It provides standards of operations at each level of the company that are proven “best practices,” and these standardizations are easily adaptable from one property to the next. This provides for speed of execution at takeover and enables employees to move seamlessly from one site to another, allowing them to both share and implement new ideas that can be used across our national portfolio. Part of our platform focuses on Operations and Maintenance Plans. Our comprehensive, detailed and building-specific plans call for an annual, critical maintenance calendar to ensure that all preventative maintenance measures are completed. In addition, our local and national management presence has allowed us to forge relationships with major suppliers and vendors to decrease costs and drive NOI.

Construction Management Laramar’s construction management division handles assignments from routine capital items to major construction projects. Due to Laramar’s national reach and volume of construction projects, material suppliers and national and local vendors are utilized to ensure the most cost-efficient pricing on all projects. Laramar leverages our nationwide network of construction professionals to ensure that each project is completed in a quality manner, on time and within budget.

Our team manages the project from start to finish, including budget development and pre-construction through project closeout, including vendor selection, coordination of material procurement, negotiation and administration of construction contracts. We also conduct a project specific forensic investigation and preparation of specific design- and scope of work documents and bid packages, such as building facade, roof, window system, cladding, flashing and exterior coating repairs and replacement; landscaping repairs and replacement, fencing, and drainage collection systems; and an evaluation of site amenities. In addition, our team coordinates site-specific surveys for energy efficiency, lighting, water, mechanical, electrical, and plumbing systems, automation and consumption management, with a common goal of enhancing revenue for each property we manage. Capital Improvements After extensive due diligence, unit and property walks, Laramar creates line item budgets for all capital improvement projects. Every renovation project is tracked through these budgets, and Laramar reviews each line item for accuracy.

Due Diligence Laramar has many active clients, and our dedicated due diligence and takeover team is structured in their approach to deliver accurate responses and recommendations. They work side-by-side with the client through the acquisition process. We provide comprehensive services including exterior, common area and interior unit inspections; lease audits; financial audits; and coordination of all third-party environmental, engineering and other consultants. Laramar works with the client to create both operating and capital budgets for the property. At each property, Laramar assesses the deferred maintenance issues to create a business plan customized to each property’s needs. Our operations team works with our due diligence and construction team to execute that business plan upon takeover.

STABILIZED OPERATIONS

The Laramar team creates a customized leasing schedule designed to stabilize a property at a velocity that maximizes returns. Our detailed schedules are designed to drive rents and create the most long-term value for the community. Our specialized team of leasing professionals work diligently to bring success to the property by leveraging technology, utilizing multiple marketing sources and understanding the target demographic and the submarket in which the community sits. Market surveys are completed by the on-site team on a weekly basis, and distributed to the regional team.

Laramar has a deep knowledge of the Philadelphia metro market, beginning with our management of Lynnewood Gardens, an 1,800 unit property spanning 135 acres and almost 100 buildings. Our D.C. metro portfolio is in close proximity to Bishop’s View, and the property would be covered from our D.C. office. This office is led by Troy Fields, Laramar’s Area Vice President for this region. In addition, we have already established many of the relationships necessary to assist with corporate outreach and leasing efforts. Laramar’s operations team works to maximize NOI every day. Through strong revenue management and a detailed expense management platform, our stabilized assets consistently outperform others in their submarkets. We aspire to exceed expectations at every level. The on-site team is both incentivized and rewarded for their leasing and resident retention efforts. Laramar has a detailed compensation program for the office staff, as outlined in the staffing plan, and we track performance through a variety of reports.

The Laramar Difference

1.1 TOP NOTCH REAL ESTATE SERVICES

Our experienced operations and marketing teams work to create a brand image that will translate through multiple marketing sources. We leverage technology at every point to make the leasing process fast and easy.

Laramar utilizes a detailed reporting format to track leasing and occupancy activity, and these reports are circulated weekly to the team on the ground. The Key Performance Indicator (KPI) Reports provide “at-a-glance” reporting for all Laramar properties nationwide. The KPI reports offer an additional layer of tracking property activities and performance levels. This report looks at each community individually, and provides detailed information on resident activity, revenue and expense management per unit, as well as detailed financial reporting. We also track portfolio performance through Ranking Reports. We rank a property’s performance on a line-by-line basis, tracking both income and expenses, against its peers, both locally, regionally and nationally. This allows us to identify outliers and opportunities for improvement. These reports have proven to be an excellent management tool. In addition to financial reporting, Laramar holds regular calls at a client’s request to discuss the business plan for the property and to ensure all standards and expectations are being met.

1.2 LEVERAGING TECHNOLOGY

LEVERAGING TECHNOLOGY Laramar is widely regarded as a leader in the real estate industry. One of the areas in which we excel is in leveraging technology to increase efficiency, improve operations and maximize financial results. Laramar is often commended for our award-winning, leading-edge use of technology, which exists in every program and at every level of the company. We work to educate our associates and residents on new technological advances, and incorporate these advances into all of our developments. Some of the ways Laramar makes the most of the latest technologies include: •

Our fully integrated website allows prospective and current residents access to real-time availability, service requests, online lease payment, lease execution and leasing renewals with seamless interaction by leasing and maintenance teams

•

A virtual leasing desk is created through Site Tablet, providing real time leasing capability on the iPad, complete with floor plans, amenities and application on screen to ensure the leasing team reaches maximum leasing potential

•

Leveraging internet-based iDashboard capabilities provides valuable information through Key Performance Indicators (KPI) to help understand areas of excellence and improvement with property performance

•

Optimizing use of internet advertising sites, including real-time updating and automated internet lead response for the quickest return on leads and tracking of prospective residents

•

Web-based resident billing service allows residents to access their account online, ensuring accuracy, maximizing collections and tracking revenue

•

Developing technology-focused amenities for residents such as property- wide Wi-Fi, Internet cafés and resident gaming areas

•

Interactive on-line policy manuals, emergency response plans and operating manuals allow for real-time updates and access from any device

•

Custom, cloud-based applications on Intranet such as Microsoft SharePoint and Forecaster provide ultimate efficiency and transparency, key benchmark measurements to optimize property functionality and serve as an excellent management tool to better understand the Laramar portfolio

1.2 LEVERAGING TECHNOLOGY

Making the most of the latest technologies (continued) •

Associates dedicated to reputation management by monitoring websites such as Yelp! and apartmentratings.com, to gauge resident feedback and provide an immediate response

•

Using Search Engine Optimization (SEO) tools to promote communities, capture traffic and maximize online exposure

•

Yieldstar and LRO are key revenue management software systems, backed by a dedicated in-house pricing department

•

Onsite check scanners help to reduce float loss

•

Benchmarking utility measurements using AUM allows for real-time response to usage spikes or changes in rate structure

•

Leveraging social media outlets to improve resident retention and capture new residents

•

Dashboard-based ranking reports allow for quarterly national performance analysis

•

Benchmarking performance through leasing associate incentive program (Incent) with real-time internet tracking

•

24-hour toll-free customer service center and e-mail for immediate response

•

Maximizing performance through Web-based time clock system to control personnel costs

•

Computer-controlled key management systems; intercom building entry systems; smart access

•

Laramar University, a Web-based career development dashboard for every associate

QUALITY PROGRAMS

1.3 NATIONAL OPERATING PLATFORM

NATIONAL OPERATING PLATFORM Laramar’s standardized National Operating Platform is utilized across the portfolio and leverages technology whenever possible in order to drive NOI at the property level. It provides standards of operations at each level of the company that are proven “best practices,” and these standardizations are easily adaptable from one property to the next. This provides for speed of execution at takeover and enables employees to move seamlessly from one site to another, allowing them to both share and implement new ideas that can be used across our national portfolio. One aspect of our platform focuses on Operations and Maintenance Plans. Our comprehensive, detailed and building-specific plans call for an annual, critical maintenance calendar to ensure that all preventative maintenance measures are completed. In addition, our local and national management presence has allowed us to forge relationships with major suppliers and vendors to decrease costs and drive NOI. Items in bold* identifies the Laramar Programs that involve leveraging technology. Area Maintenance Coordinators (“AMCs”) Each region has a designated AMC who is the most experienced Service Manager in their region; their role is to complete Laramar’s Quarterly Property Inspections and ensure that Laramar’s Safety Management and Sustainability Programs are being consistently followed at every property; they also solicit new ideas and once tested and proven these new ideas become the next Laramar Programs and are incorporated into the Operating Platform through Sharing Best Practices; every new Service Manager is trained by their local AMC, ensuring consistency of training throughout the organization

AUM – a third-party resident billing company that also provides energy management; all bills are reviewed to ensure billing accuracy in terms of rates, taxes and tariffs; in addition, vacant unit utilities are monitored to ensure that bills are switched over to the new residents the day they take occupancy which minimizes vacant utility bills and helps drive NOI Blocking A quarterly process where our National Purchasing Manager reviews all purchasing in the field (down to nuts and bolts) with a team from our maintenance and construction groups and identifies the most cost-effective products that the field should be purchasing and then “blocks” alternate products with our national supplier, Wilmar; field associates trying to purchase blocked items are then re-directed to the approved products; this program results in significant expense savings Car Share Programs A Laramar Green Team program; implemented at urban properties so that residents can “check out” a car for short term use; not only green but also a great amenity to offer residents Customer Service Email Complaints may be made to our designated Customer Service EMail Account at Resident@LaramarGroup.com. Residents can use this to provide feedback to our management company. All issues are recorded in a Laramar Customer Service Log and responded to and resolved within 24 hours (if possible). Customer Service Hotline Laramar has a Customer Service Center set up for all residents to call (1-888-4-LARAMAR) at any time and report any issues they may have. All issues are recorded in a Laramar Customer Service 11 Log and responded to and resolved within 24 hours (if possible).

Due Diligence/Transition Director A full time Laramar employee focuses on making sure that both due diligence and management takeovers are smooth and seamless

1.3 NATIONAL OPERATING PLATFORM

EnergyStar A federal program to identify energy efficient appliances, buildings and companies; Laramar uses only EnergyStar appliances on 100% of replacements portfolio-wide; Laramar has also been named an EnergyStar Partner Green Team A cross section of Laramar associates that meet monthly to identify and implement green initiatives throughout the portfolio Hunter Warfield Third party collection agency; used only after in-house collection is exhausted Incent* In-house developed leasing compensation program that is tiered and rewards top performers; Internal Audits Unannounced audits performed by Internal Audit Department to ensure financial integrity and compliance with all Laramar Programs

KeyTrak* Computerized key control system utilized at every Laramar property Laramar University* Comprehensive training program including classroom, small group, one-on-one, mentor, video, audio, pre- and post-testing and extensive use of leading-edge web-training technology

Lead Management* This software within Property Solutionsâ&#x20AC;&#x2122; Prospect Portal automatically creates guests cards as leasing calls and e-mails are received and integrates directly with Yardi. All prospect e-mail communications and follow up activity are tracked within this system. Leads are routed to the Leasing Associateâ&#x20AC;&#x2122;s dashboard upon logging in so they can conduct regular follow up, track pending applications and online lease executions. Lease Expiration Management A process managed through LRO to ensure that the correct number of leases are expiring each month based on projected supply and demand (summer vs. winter months) which reduces occupancy fluctuations and therefore facilitates maximizing rental rates and driving NOI USGBC - LEED (Leadership in Energy and Environmental Design) Laramar is a member of the U.S. Green Building Council. In 2010 we achieved a LEED silver certification a large San Francisco Property, and in 2014 received LEED certification for a multifamily high-rise building in Chicago Lighting Retrofits* A Laramar Green Team program; replacing light bulbs, fixtures and ballasts with energy-efficient lighting and installing photocells, timers and motion detectors resulting in better lighting quality, in many cases better curb appeal and reduced operating expenses; payback on investment is often less than 2 years 12

LRO (Lease Rent Options)* Leading-edge revenue management software managed by Laramar’s in-house Pricing Manager, that has resulted in “revenue lift” of 3%

1.3 NATIONAL OPERATING PLATFORM

Maintenance Shop Bar Codes* An inventory control system that allows for the easy tracking of inventory and ordering supplies

Maintenance Shop Color Coding Every Laramar shop uses a standard color coding system so that associates can move to different properties and different regions and they immediately know how the shops are organized Microsoft SharePoint* Leading edge software used for Laramar’s company-wide intranet; this technology is an excellent way to store and share information throughout the company National Purchasing Program A Laramar program that negotiates national volume discounts on a wide variety of supplies and services. Revenue share agreements are negotiated with national providers of services such as cable, telephone, high-speed Internet, laundry and energy services to offer Laramar residents the best available technology and services at competitive rates and to develop revenue stream opportunities for the properties from these programs. Our pricing is available to all of the properties in our portfolio. In addition to discounted pricing negotiated with our national suppliers, Laramar holds quarterly “blocking” meetings where all purchasing is reviewed and the most cost-effective supplies are identified and supplies that are deemed less cost effective are blocked and are not available for the field to order.

National Programs and Ancillary Service Manager Laramar has a dedicated National Programs Manager that oversees these departments. The National Programs Manager works with various providers around the country to maximize revenue potential and communicates/coordinates with the community manager as agreements are negotiated. We work with providers such as AT&T, Verizon, Qwest, Comcast, Time Warner, Bright House Networks, Coinmach, MacGray, Web, and others to provide you with the highest commissions and revenue stream we can negotiate. Overall contract compliance is tracked along with monthly and quarterly revenue share and commission payments. The revenue tracking spreadsheet is distributed to the properties on a quarterly basis. Payscan* A third-party service that allows Laramar to process and approve all invoices electronically through the web, greatly streamlining this process over what other companies do and creating better controls Online Leasing* Laramar provides an online leasing opportunity for our communities through our website. Prospects can fill out applications and sign both new and renewal leases online. Online Surveys* Laramar utilizes Kinsgley research, an online survey process, to survey all tours, as well as a 10% sampling of current residents. We also utilize it to measure every move-in. This survey helps us gauge our leasing and customer service performance and outlines any areas needing improvement. 13

1.3 NATIONAL OPERATING PLATFORM

OnSite* Third-party resident screening and criminal background check service; actively managing this system allows for maximum occupancy with the highest possible resident credit profile.

Risk/Safety Manager Laramar has invested in a dedicated Risk/Safety Manager which results in fewer Workers’ Compensation and liability incidents at the property level and lower insurance premiums

Policy & Procedures Manuals* All web-based with full search functionality; can be easily updated and the field always has access to current information

Siemens Laramar’s sustainability partner; focused on Sustainability Standards and Purchasing Guidelines. The partnership resulted in a sustainable infrastructure designed to establish the building blocks for efficient and sustainable performance throughout the lifecycle of Laramar’s properties. Infrastructure addresses replacement purchases made during the normal course of business at Laramar’s properties; the purchase of products, materials and equipment during the retrofit or renovation process.

Preferred Employer Program A national program that allows each property to identify specific employers in their area and offer their employees discounts and special offers; this program is a great way to get access to the employees of these employers and helps with outreach marketing OnSite* Third-party resident screening and criminal background check service; actively managing this system allows for maximum occupancy with the highest possible resident credit profile. Policy & Procedures Manuals* All web-based with full search functionality; can be easily updated and the field always has access to current information Ranking Reports An excellent management tool used by Laramar to “slice and dice” the portfolio and identify outliers and opportunities for improvement; many statistics are measured and ranked monthly and then these reports are distributed to the field which instills a healthy sense of competition

Star Team Team of on-site and floating associates who have been identified as some of Laramar’s “best and brightest” who are available upon short notice to travel nationally to assist with property transitions, turnarounds, staff openings and special projects; Star Team members are easily identified by the star on their name tags; the Star Team is coordinated by Laramar’s Assistant Vice President Tablet Leasing* Our website also allows real time iPad leasing technology. We believe that much of the leasing activity on new lease ups will happen as prospects are touring the community. Leasing team members can pull up real time availability and close a deal at any point on a tour right from their iPad. YieldStar* Leading web-based revenue management software program; allows Laramar to identify premium pricing opportunities at each 14 property; utilized by the in-house Pricing Manager

MAINTENANCE PROGRAM

1.4 MAINTENANCE PROGRAM

Service requests are called in by residents on an as needed basis and our maintenance employees respond within 24 hours to all calls. A maintenance person is on call 7 days a week, 24 hours a day. Service requests are logged into either Yardi or MRI and closed out upon completion by our Service Manager to insure the details of the request are properly documented and tracked for future reporting. Upon move in, an apartment inspection is conducted and recorded in the leaseeâ&#x20AC;&#x2122;s file for tracking upon move out so any damages assessed upon move out can be charged back to the resident. Pest control is conducted weekly on an as needed basis when a resident calls in for service. This enables the property to have authorization to enter the apartment from the resident in advance for pest control service. Preventative maintenance is ongoing. At Laramar, we understand the each property is different. Therefore, a customized Preventative Maintenance Program will be designed to respond to the systems at the property. Routine quarterly apartment inspections are conducted to maintain and preserve the apartment conditions at a high standard.

We will develop a Preventative Maintenance Program that addresses ongoing maintenance requirements on a monthly, quarterly and yearly basis. Records will be kept at the property and will be available for review. All maintenance shops are color coded and standardized. The Community Manager conducts weekly property inspections and meets with the Maintenance Technician on a daily basis to review the plan for the day. The Regional Manager and AMS then conduct quarterly inspections of the asset to provide a third set of eyes for inspecting the property and performance of the staff. The AMS will conduct quarterly inspections to train the site staff, confirm OSHA compliance, and update the propertyâ&#x20AC;&#x2122;s sustainability score card. Outside vendors are called in for larger service calls that inhouse maintenance is unable to perform due to the size or nature of the project. All contracts must be approved and all vendors must register with the vendor compliance department to insure the proper insurance is carried by everyone working on the asset.

At the time of the delivery of the property, Laramar will catalogue all warranties and manufacturer-specified maintenance schedules. 15

1.4 MAINTENANCE PROGRAM

MAINTENANCE PROGRAM The best maintenance program for a new property is to be familiar with and to follow the recommended manufacturer maintenance programs for all of the mechanical and building systems. Our goal by pre-hiring the maintenance staff is to ensure that the employees have this knowledge and are familiar with all of these requirements. In order to ensure that all of the equipment is maintained at optimal condition and efficiency, we recommend that all repairs and outside maintenance of the systems be performed by the installer of the equipment. This is done because of their familiarity the equipment and with the building, and this ensures that all warranties remain in effect. An additional maintenance program that Laramar implements at all new developments, and will implement at this community, will be the walking of all vacant apartments during lease-up. The purpose of this program is to ensure that all vacant apartments remain in optimal condition, and remain ready for showing at all times. All inspections will be documented on customized checklist forms in order to guarantee that the apartment has been inspected and is in good condition. In addition, an apartment inspection is conducted upon move in and is recorded in the leaseâ&#x20AC;&#x2122;s file for tracking so any damages assessed upon move out can be charged back to the resident.

PROPERTY MAINTENANCE & LANDSCAPE Most maintenance tasks are performed by the in-house maintenance technician. Complex and specialty tasks can be supplemented by third party vendors (depending on the complexity of the maintenance request). This process allows for the most expeditious and cost effective option to be selected for each service order, offering speed of execution and superior customer service to residents. Our in-house maintenance team is also in charge of maintaining curb appeal. Landscaping tasks will be the responsibility of an outside vendor and will be overseen and approved by the Service Manager and the Community Manager at the property. All outside vendor contracts must be approved and all vendors must register with the vendor compliance department to assure that proper insurance is carried by everyone working on the asset. Requests can be submitted through our centralized office 24 hours a day via phone, email or text message.

SERVICE REQUESTS Resident service requests are submitted online using the maintenance portal of the website or to the management office in person or by phone.

1.4 WORK ORDERS

All service requests are integrated with Yardi’s management software program to record the nature of service requested, service technician details and date completed. Our maintenance employees respond to all resident service requests within 24 hours, and all service requests are to be completed within a 24 hour period whenever possible. In cases involving warranty issues, the service technician will promptly notify the warranty vendor and building engineer to determine the appropriate course of action. Scheduled move-outs have a pre-move out inspection completed 30 days prior to the anticipated vacate date. The resident will be notified of any potential charges they may incur, and will be given the 30 day period to correct the deficiencies. Upon move-out, locks will be changed and the following work will be completed as necessary: • Carpet Cleaning or Replacement • Cleaning • Maintenance inspection with repairs as required • Touch Up Painting

PURCHASING

1.4 PURCHASING // STRATEGIC RELATIONSHIPS

Laramar has a purchasing department based out of our Denver office. Our National Programs Manager is continuously working to achieve the most competitive pricing on products and services. We have several national agreements that leverage our portfolio size to obtain the best pricing on these products and services. Laramar has rebate programs with vendors such as Floor Expo, Office Max and Wilmar, where quarterly rebates are received based upon property level spending and use of online ordering capabilities. Our vendors send us quarterly reports with the breakdown of purchases and mail rebate checks to our office in Denver to be deposited to each specific propertyâ&#x20AC;&#x2122;s operating account.

NATIONAL AGREEMENTS WITH SEVERAL LARGE SUPPLIERS Under our management, you would be receiving the same pricing as we do on our entire portfolio of managed assets. Examples of our relationships include: Direct Fitness Solutions FedEx FloorExpo (Shaw, Dal Tile, Tarkett) General Electric (GE) Glidden Professional Hunter Warfield Marietta Drapery Office Max OnSite Rent Property Solutions Realtycom Siemens Staples Vending Solutions Waste Management Wellbeats Whirlpool Wilmar - Wilmar is the nation's largest distributor of maintenance supplies exclusively for the multifamily industry. Laramar has established a national program that gives us leverage in pricing and purchasing of their products.

1.4 SERVICE CONTRACTS // THIRD PARTY

Laramar uses the following criterion in the selection of third party vendors. We have a National Vendor program that is a list of contractors and suppliers with best pricing, work quality and trusted vendors. These vendors provide various types of services and are compliant with standard insurance requirements. The Regional Managers, Community Managers and Project Managers can and do solicit three bids for projects from qualified union and/or non-union vendors. The bids are presented to the Owner for review and approval of each project prior to contracts being awarded. Recommendations are provided to the Owner and the bid is awarded by the Owner to the best qualified and best priced vendor. Contracts are then written and sent out for signature allowing work to commence upon execution. At completion of the contract, close out is obtained, which includes warranties, lien waivers, contractor affidavits, final permits and C of O if applicable. Vendors are required to submit the following information to the Community Manager: • IRS form W9 (Required) • Certificate of Liability Insurance (Required for all vendors with the exception of suppliers or vendors who perform no physical services on the property). • Automobile Insurance (Copy of actual certificate of auto insurance for any vehicle taken on to the property. Be sure to the business name is written on the policy. • Workers’ Compensation Insurance • Workers’ Compensation Exempt form (Only if applicable) • Vendor Agreement (Required) • ⁭ Any and all applicable licenses – these must be current. Formal written agreements for the utilization of contractors: Laramar utilizes four types of contracts: • Consultant/Architect • Work Order contract (contract for work under $5,000) • Short Form contract (contract for work under $25,000, lasting only a few weeks and low or moderate risk insurance) • Long Form contract (contract for work above $25,000 or at a high risk insurance)

Laramar self-manages the criteria and process used for the selection of contractors. We have a uniform vendor service agreement and compliance process. However, this information is proprietary. Laramar also outsources the background checks and pre-employment testing for third party services. We also self-manage the formal written agreements for the utilization of contractors. All agreements are templates and reviewed by counsel. The following is a summary of the activities which we will engage third party service providers for the successful operation of the property: Third Party Contracts: • Advertising/Website Management, Ad Production • Apartment Cleaning, Shampoo and Paint • Common Area Cleaning • Elevator Maintenance • Emergency/Safety Management Systems • Employee Uniforms • Energy Advisory Services • Fitness Equipment Maintenance • Garage Management • Key Trak • Landscaping/Snow Removal • Payables Management • Pest Control • Phone/Cable Providers • Property Management Software • Utility Management Program • Utility Providers • Waste Removal Self-Performed: • Grounds Monitoring and Cleanliness • Oversight of Warranties • Quality Control • Safety Inspections • Unit Acceptance

1.4 DISASTER RECOVERY PLAN // AUDIT PROCEDURES & FREQUENCY // CHECKS & CONTROLS

DISASTER RECOVERY PLAN Every property managed by Laramar has emergency procedures. These procedures roll up to an umbrella Laramar corporate crisis plan and the crisis team. The main objectives of these plan are to ensure the safety of Laramar residents and employees and to help Laramar minimize any negative impact to operations and the brand through effective communication between properties, regional officers and corporate headquarters. • The safety of Laramar residents and employees is the first priority during any incident. There are many potential crisis situations, any one of which could result in significant negative impact to the following: o The communities and their profitable operations o Laramar reputation and brand o Laramar financial performance • This plan is principally designed to help Laramar minimize any negative impact on residents, employees, and the brand, through effective communication with each other, partners and the media in crisis situations. o Enable Laramar to effectively communicate internally, externally and to the media in a time of crisis o Provide information that is timely and accurate o Show that Laramar management is well-informed, responding openly to the media and handling the crisis in a confident and responsible manner • Moreover, if there is no official response to a visible Laramar crisis, the media are left to fill the vacuum with their own perceptions, observations and outside sources, which may not position Laramar accurately or favorably.

AUDIT PROCEDURES & FREQUENCY Laramar has an Operational Loss Prevention Program to monitor compliance with the company’s policies and procedures. We have a detailed Loss Prevention Inspection Checklist which outlines everything Laramar accounts for at each property we manage, as well as the group responsible for these items.

These audits happen annually, or as needed, and involve the Property Accountant, the Senior Vice President of Accounting, the Area Vice President and the Community Manager. The completed checklist is reviewed by the Operational Loss Prevention Committee and recommendations and follow up items are noted as necessary.

Please see attached reporting supplement for a copy of our Operations Loss Prevention Checklist. INTERNAL CONTROLS Laramar has not engaged auditors to perform a SAS 70 audit, but as the manager of a co-mingled fund that includes many institutional investors, we have several financial statements and all processes and internal controls audited annually by Ernst & Young. These audits have resulted in clean opinions for seven consecutive years.

CHECKS & CONTROLS Our commitment to high ethical standards and integrity starts at the top and continues to all Laramar associates. Laramar has policies and procedures in place for the processing of all transactions to ensure adequate internal controls and proper segregation of duties. Narratives for payroll, accounts receivable, disbursements, and the month end close process are published at the corporate level and the related procedures are communicated at takeover. Communities receive initial training from our Training team and are provided with an online operations procedures manual. Financial data is reviewed for accuracy monthly by a senior level accountant or manager. This review encompasses bank reconciliations, sub-ledger tie outs, actual to budget variance explanations and balance sheet and income statement review. In addition, the accounting team and operations team interact frequently to make sure all transactions are discussed and recorded appropriately. Additional training is provided as needed by the Software Support Team. Laramar also has a mentor program; each region has a mentor to help them with further training of any procedures or training of new staff. 20

1.4 HIRING PRACTICES & TRAINING PROGRAMS

Laramar uses a wide range of media to attract a diverse group of top talent. This includes social media and online job boards, as well as newspapers, job fairs, community involvement, local networking groups and local apartment associations. Laramar has experience working with unions and we recruit and hire per the individual union contracts. We take pride in our people, and invest in the best talent in the industry. To attract and retain this talent, further education classes, seminars or conferences of the Director of Marketing are charged to the Marketing Department as a corporate expense. Any vendor based training through local multi housing associations is charged to the property if applicable. All new employees are trained by our Yardi and MRI support staff from the corporate office through webinars and conference calls as well as by the Director of Marketing assigned to them. New associates are assigned an Accounting/Yardi trainer to help them learn Laramar’s software system. Each new associate is also assigned an Agent for Continued Education (A.C.E. Trainer)who is based in their region. A.C.E. Trainers focus on marketing and sales/leasing – they are the subject area expert on 1 or 2 areas for the entire portfolio, as well as being the new hire “buddy” for on-boarding within their own geographic area HUMAN RESOURCES STAFF & RETENTION PROGRAM Laramar’s Human Resources Department is based out of our Denver corporate office, and is responsible for sourcing and retaining associates. They hire, train and support employees both in the field and the corporate offices. They have created detailed programs designed to retain talent, recognize employees for their efforts and successes, as well as extensive training and ongoing education programs for both new and tenured associates. One of the programs that has had widespread success throughout Laramar’s portfolio is the Nationwide Employee Recognition Program. This program is designed to recognize and award team members for going above and beyond the normal call of duty in their day-to-day interaction with other co-workers and residents. Laramar found that this program promotes teamwork and appreciation among associates.

Laramar is an equal opportunity employer. TRAINING PROFESSIONALS Laramar has a fully staffed Training Department including a VP and a team of Regional Marketing Managers. The Regional Marketing Manager program is an excellent way to leverage Laramar’s “best and brightest” in the field and provide these associates with additional challenges and recognition which is good for these associates and for the company. RMM’s also help develop and test new training programs which, once tested and proven effective, are implemented throughout the portfolio and added to Laramar’s Operating Platform. LARAMAR UNIVERSITY Laramar has a comprehensive, web-based, training program called Laramar University. This consists of classroom, small group, oneon-one, mentoring, video, audio, self-study and extensive webbased training. The web-based courses include pre and post-testing and interactive FAQs. Additionally, every Laramar associate has a personal Laramar University web page to track the progress of their professional education. RECRUITING Laramar’s seasoned in-house recruiter is dedicated to site level staffing, allowing for quick and smooth team building. Our preemployment screening process ensures the best possible candidates are hired which reduces future performance issues and turnover. Online employee orientations and new hire training allow for new employees to quickly get up to speed. BENEFITS PACKAGE A competitive benefits package assists in attracting the industry’s top performers by including Paid Time Off (“PTO”); 401k Savings Plan with matching; Medical/Vision/Prescription and Dental; Disability. These benefits help reduce turnover and resulting property disruption and expenses. A confidential Employee Assistance program, health club and mass transit reimbursements 21 plans are additional incentives enjoyed by Laramar associates.

1.4 PERFORMANCE STANDARDS

PERFORMANCE STANDARDS Laramar provides training for all site level associates to reinforce company expectations, programs and quality performance levels. Also, prospects and residents alike receive surveys from Kingsley Associates to provide feedback to the community on services provided. Associates receive performance evaluations annually to identify skill strengths and any opportunities for improvement. Our leasing consultants are vital to the success of our organization; therefore sales associates receive shopping evaluations quarterly to ensure established benchmarks are being upheld. COMPENSATION/REWARDS PROGRAM All recommended salaries are detailed in the staffing plan. Laramar uses the following compensation guidelines to reward associates for exceptional performance levels and achieving the established goals of the property. Community managers and service managers receive quarterly bonuses based on property budget performance and subjective goals established by the RM or AVP. The leasing consultant is eligible for leasing commissions and renewal lease commissions.

Laramar’s Incent program looks at the occupancy goals and market conditions to generate commission payment recommendations based upon the number of leases an associate secures during the month. During lease up, the leasing consultant position is eligible for commissions. JOB DESCRIPTIONS & PERFORMANCE EVALUATIONS To effectively lead, supervise, train and discipline associates, job descriptions are written for each position within the company. These job descriptions are available online through Laramar’s Employee Portal, so associates have access anytime. These descriptions help manage expectations and deliverables from each employee, both in the corporate office and on the ground. Performance evaluations occur on an annual basis, and are completed by the employee’s supervisor. Laramar tracks these evaluations, and benchmarks an employee’s performance from year to year. Benchmarking the results helps employees achieve their goals year-to-year.

2.0 EXPERIENCE

2.0 EXPERIENCE OPERATIONS EXPERTISE // COMPREHENSIVE EXPERIENCE

NATIONAL MANAGEMENT PRESENCE WEST REGION San Francisco Los Angeles Las Vegas Seattle Phoenix

National Management Presence

2.1 LOCATIONS

CENTRAL REGION Chicago Dallas Denver Houston Minneapolis Oklahoma City St. Louis Tulsa EAST REGION Atlanta Boston Charlotte Hartford Louisville Maryland Miami Orlando South Carolina Tampa Virginia Washington, D.C.

Laramar has a fully-integrated, geographically diversified platform with management experience. Bishopâ&#x20AC;&#x2122;s View would be supported by our D.C. regional office and our corporate office in Denver.

Our Denver corporate office provides the following support: HR IT Risk/Safety Accounting Pricing

Our DC office will provide: Area Vice President Senior Property Manager Regional Marketing Coordinator Project Manager ACE Trainer

Construction 24

PHILADELPHIA METRO // EXPERIENCE

2.1 EXPERIENCE // PHILADELPHIA METRO

Property Name

LEASED/MANAGED* Unit Count Class

Occupancy

Broadfalls

120

99.2%

Hermitage Hill

122

96.7%

Owings Park

174

A-

92.5%

Park at Winterset

176

A-

94.3%

Village of Churchills Choice

192

B+

96.9%

Whetstone

102

97.1%

OWNED ASSETS Property Name Avery Park

Unit Count 606

Occupancy 96.2%

Hunting Point

530

75.9%

The Gates of Cipriano

592

91.4%

Woodvale

376

95.2%

*No properties in Laramar’s current portfolio are bond restrictions/tax credit properties.

2.1 OWINGS PARK // EXPERIENCE

Stabilized Asset â&#x20AC;&#x201C; Management Owings Park 9202 Samuel Owings Drive, Owings Mills, MD 21117 In November 2013, Laramar was awarded management of Owings Park, a 174 unit property located in Owings Mills, MD. Our business plan for the asset included a value-add renovation to the unit interiors, exterior trim painting, life safety and general deferred maintenance repairs. We changed out the signage to the community which was dated and worn. We upgraded the logo and colors, cleaned and upgraded the landscaping to enhance the curb appeal and draw more traffic. In addition, we added new countertops, vinyl plank flooring, appliance and lighting fixtures to the units to make them more in line with prospectsâ&#x20AC;&#x2122; needs.

Our plan also included bringing in our own management team of professional associates who helped show residents a customerservice oriented and attentive staff. They hosted resident functions and were consistent in their maintenance and management efforts to increase occupancy and increase rents. The onsite team also engaged residents in regular Kingsley surveys, so we could assess their needs and wants for their community. These surveys also allowed us to understand how to improve our platform at the property. Laramar was incredibly successful with these efforts: our team aggressively pushed rents, resulting in a year over year increase of 6.71%. The submarket rents only increased 3.5%. For the time period of December 2013-December 2014, the team averaged 96.4% occupancy, resulting in total income growth of 8.16%. Year over year growth for Net Operating Income is 19%. 26

Major Rehab/Repositioning Hunting Point on the Potomac – Alexandria, VA 530 Units Two 8 Story Buildings

2.2 HUNTING POINT // EXPERIENCE

In March 2013, Laramar acquired Hunting Point Apartments, a 530 unit property in scenic Alexandria, VA. The property is situated along the Potomac River with miles of running and biking trails, offering residents numerous opportunities to enjoy the outdoors. Our business plan capitalizes on the location, as well as the deferred maintenance at the property to enhance residents’ living experiences. Our $14 million renovation plan includes replacing the windows in all units, renovation of all unit kitchens and baths, enhancing the hallways and common areas with new carpeting, paint, lighting and furniture, as well as upgrading the amenity spaces to make them more modern and usable for residents. The pool area was upgraded with the addition of a pool house lounge area for residents.

Project Achievements: • • • •

50% of the window replacements are complete 100% of the domestic water re-piping is complete 100% of pool renovations are complete 50% of the re-branding and re-positioning process is complete • 50% of hallway renovations and common areas are complete • Unit interior renovations are underway, and are scheduled for completion in Q1 2016

In addition, the building needed an extensive mechanical renovation. To date, Laramar has re-piped the domestic water lines and added controls to the boiler system. Furthermore, our business plan includes the design and construction of a new clubhouse for the property that will include a leasing center, community room, fitness center and outdoor BBQ area for residents. We are also in the process of re-branding and re-positioning the property, to appeal to our target demographic. We are currently working on a new name, collateral and signage, as well as identifying key lifestyle images that will fit the brand we are creating for the asset. 27

2.2 THE BELDEN STRATFORD & PARK KIELY // EXPERIENCE

Major Rehab/Repositioning The Belden Stratford – Chicago, IL 297 Units High Rise, Mixed Use Building In December 2011, Laramar acquired the Belden Stratford, a 297 unit, mixed use apartment-hotel property in one of Chicago’s premier neighborhoods. The business plan outlined a program to convert the property to 100% multi-family-only units. Our business plan called for the elimination of the hotel services that our projections calculated would result in approximately $1.65 million in variable expense savings and would simplify the revenue stream. Laramar also expanded the building services which were outdated and under-market to include upgraded amenities such as a renovated rooftop deck, new WiFi café and lounge, as well as a renovated lobby that would allow for more resident interaction, including resident events and retention programs. As part of the business plan, Laramar instituted an upgrade program with more up-scale finishes at an estimated cost of $4,735 per unit, resulting in a projected average monthly rental increase of $115/unit which equates to a 30% return on cost. The resulting NOI from the overall improvement plan was projected to increase by approximately $1.1 million at the end of year two and $1.3 million at the end of year three. The hotel conversion simplified the revenue stream, as 107 units were renovated. In addition, Laramar’s business plan resulted in an increase in NOI to $4.2 million vs. $2.8 million at acquisition. In December 2013, Laramar sold the asset but was retained as manager due to our performance on the asset.

Major Rehab/Repositioning Park Kiely – San Jose, CA 948 Units In June 2008, Laramar acquired Park Kiely, a 948 unit asset near Silicon Valley from a distressed owner. Our strategy with the asset was to first capitalize on the close proximity to numerous Silicon Valley employers including Apple, Cisco Systems, Adobe and Google. Laramar’s strategic renovation plan centered on enhancing the property and upgrading units at a cost of $5.1 million. Laramar’s $11 million renovation plan included first addressing and correcting major deferred maintenance items, then enhancing the leasing center, as well as upgrading the curb appeal and amenity spaces. For these upgrades and renovations, Laramar achieved a 20% ROI through increased rental rates. When the property sold in December 2011, Laramar had realized an 11.0% average annual cash-on-cash return since inception.

3.0 SOFTWARE, MARKET DATA AND REPORTING

3.0 SOFTWARE, MARKET DATA AND REPORTING FINANCIAL REPORTING // REPORTING SYSTEMS // MRI

3.1 FINANCIAL REPORTING

FINANCE AND ACCOUNTING // INFORMATION TECHNOLOGY SYSTEMS Budgeting and Forecasting: The annual property budgets are pre-loaded in the corporate office based on the property's historical and seasonal performance, market research and corporate and property level goals. The budgets are then sent to the field 90% complete and the RMs and CMs fine tune the budgets from this point. Laramar’s detailed review process involves the field, the COO and the Director of Financial Planning & Analysis. A final review is done with the client, who has final approval on each line item of property budgets. This process results in more consistent and accurate budgets and does not burden the field with a several month budget process as often happens at other companies and instead allows the field to focus on property operations. Annual property budgets and forecasts are produced using Microsoft Forecaster, a leading edge software program that allows for extensive analysis and sensitivity scenarios. Laramar's budgets take into account each lease transaction and appropriate pricing strategies which produces very detailed and accurate budgets. Reporting Package: Laramar provides clients with a full reporting package including real time information through MRI and Yardi, weekly reports and a comprehensive monthly reporting package including all financial statements and narrative owner's report. These reports are customized for each client, and our teams work closely with each client to deliver a package that caters to the clients’ needs. Weekly reports include occupancy, traffic, leasing, closing ratios and projected exposure. The monthly reporting package includes comprehensive "Ranking Reports" to track a wide range of metrics, which are measured across the portfolio to quickly identify outliers and opportunities for improvement. This is distributed electronically. Each property is assigned an accountant, who works exclusively with the operations team and the Owner. This accountant and their team prepare budgets, financial statements and a narrative each month. They track the property’s daily activity and are also in charge of processing all invoices for the community.

Collections: The Collections Manager's success, at each property, is tracked and measured on a Ranking Report every month. Collections above 98%, 99% and 100% each month are rewarded with a tiered monthly collections bonus (based on the percentage of the current month's billings collected in that month before accounting month end). Outstanding amounts not collected by accounting month end are still pursued but measuring results by this cut-off date creates a sense of urgency for the Collections Manager. Amounts deemed uncollectable are turned over to a national collections agency. iDashboards: A custom cloud application which allows us to create and monitor multiple Key Performance Indicators throughout our portfolio in an on demand setting. By analyzing property performance by Region, MSA, Client and Ownership, we can instantly identify and recognize any key outliers and monitor predictive indicators to stay on top of property performance on a daily basis. Laramar’s Website: Property Solutions is Laramar's website partner. Navigation through the website by computer, tablet or smart phone is seamless and prospects are able to search availability, current pricing and submit applications online. The Resident Portal allows for online rent payments, submission and tracking of service requests and for residents to refer friends. Laramar's use of iPads with site tablet capability provide a virtual leasing desk from any location. It allows customers to spend more time viewing the features and amenities of the community. Associates can check availability, pricing and assist applicants with applying online from the Wi-Fi cafe instead of sitting at a traditional leasing desk. Resident Screening & Credit Review: All prospects are screened through OnSite, a leading edge web-based system. "Cut points" that determine at what level prospects are accepted, declined or "accepted with conditions" (requiring additional deposit) are managed by Laramar's Pricing Manager and the Regional Managers. Actively managing this system allows for maximum occupancy with the highest possible resident credit profile. All prospects are screened for criminal background. 30

FINANCE AND ACCOUNTING

3.2 TECHNICAL RESOURCES

Revenue Management: Laramar utilizes Lease Rent Options (LRO) and Yieldstar, which are leading edge web-based revenue management software programs. Laramar has invested in an inhouse revenue management department, led by our Pricing Manager. The department is proficient in both Lease Rent Options (LRO) and Yieldstar, which are leading edge web-based revenue management software programs. Laramar develops a pricing matrix for each property, and each unit is priced individually by identifying any and all opportunities for premium pricing. Our Pricing Manager holds weekly “pricing calls” with each property to review software recommendations and identify additional pricing opportunities. Financial Controls: All accounting functions are centralized in Denver which allows for detailed checks and balances. A centralized accounting function also allows for appropriate segregation of financial duties which creates significant efficiencies. All financial operations are monitored and tracked through Yardi and MRI and our full service accounting, property management and asset management departments. Laramar's accounting department utilizes Yardi and MRI to streamline the reconciliation process which allows the accountants more time for financial analysis and proactive problem solving. Both Yardi and MRI have a full support team at the Corporate office to assist all onsite employees with issues or questions that may arise. Software and Systems: Laramar leverages technology in every way possible by using many software and web-based applications, including LRO for revenue management, Nexus for web-based payables management, and Laramar University, our proprietary web-based professional education program. Laramar supports both Yardi and MRI platforms, which are fully integrated, web-based, front-end property management and back-end accounting systems. Property Solutions is Laramar's website provider, which allows for online prospect and resident payments through our website, Property Bridge and MRI Resident Portal. Laramar has a full team of both Yardi and MRI mentors in each region to assist with all training for new hires and ongoing training for all field employees.

Sophisticated Reporting Systems: Laramar utilizes extensive and detailed reporting systems to help us maximize our management capabilities and ensure the success of each property we are involved in. Laramar provides clients with a full reporting package including real time information through MRI and Yardi, weekly reports and a comprehensive monthly reporting package including all financial statements and narrative owner's report. Weekly reports include occupancy, traffic, leasing, closing ratios and projected exposure. The monthly reporting package includes comprehensive "Ranking Reports" to track a wide range of metrics, which are measured across the portfolio to quickly identify outliers and opportunities for improvement. The monthly reporting package is distributed to our clients electronically. These reports are analyzed by our Operations teams and are used to benchmark our success nationwide. Included in these reports are an Expense Matrix showing all expenses year to date, a Budget Comparison Year to Date report, as well as a Key Performance Indicator (KPI) report. The KPI report provides “at-a-glance” reporting for all Laramar properties nationwide. These KPI reports offer an additional layer of tracking property activities. This report looks at each community individually, and provides detailed information on resident activity, revenue and expense management per unit, as well as detailed financial reporting.

In addition, our reporting systems include tracking rent and renewal trends at our properties. These reports focus on historical rental activity year to date, including computing the average rent for a move out versus a new lease. Using this report in conjunction with a detailed report listing why residents move out helps Laramar stay competitive in the marketplace. These reports give us the opportunity to understand and react to changing market trends. This information helps us better attract and retain residents. We track renewals on a monthly basis throughout our portfolio, so we can look at trends on a national level as well. We feel combining specific market data with nationwide trends allows us to stay ahead of the competition and understand trends at every level of the market. 31

3.3 SOFTWARE, MARKET DATA, REPORTING

Laramar utilizes MRI and Yieldstar and would provide the same monthly reporting package that is currently distributed across Laramarâ&#x20AC;&#x2122;s current TIAA-CREF portfolio. The monthly reporting package includes a full set of ownerâ&#x20AC;&#x2122;s reports including income statements, balance sheets, trend reports and GLs. The accounting month close-out is the 15th of each month, and would be consistent with the other properties that Laramar manages for TIAA-CREF. While utilizing MRI, Laramar also leverages technology in every way possible by using many software and web-based applications including LRO and YieldStar for revenue management, Nexus for web-based payables management and Laramar University, our proprietary web-based professional education program. All of the various software and web-based systems used by Laramar have detailed reporting capabilities and contribute towards improved property performance. Laramar subscribes to two of the top national market research firms, CoStar and Pierce Eislen. This combination allows us access to gain local market insight and research for the Philadelphia metro area, as well as market reports from Delta Associates. In addition, LRO provides excellent market data at the submarket level. Therefore, we have strong market data provided by submarket, local and national firms.

4.0 COMPLIANCE

4.0 COMPLIANCE COMPLIANCE // LARAMAR DEPARTMENTS & PROCEDURES

4.1 COMPLIANCE// ENVIRONMENTAL & SAFETY PROGRAM

Laramar’s Risk Management team is based in our Denver office, and ensures full compliance with all policies and procedures for each region and each client. Laramar’s compliance program is designed according to national standards for property management, and adheres to clients’ policies.

In addition, over 20 online safety and OSHA courses are available through Laramar University, and training is reinforced through Laramar’s employee safety suggestion and recognition program, safety orientations and annual certification training for all employees.

In addition, Laramar has in place an Emergency Procedures Manual that is present at each property, and trains each onsite team member in the proper communications and actions if an emergency should arise.

Through our company newsletter, Laramar includes a “Safety Corner” section for all employees to review. Also, Laramar provides job safety training for all Service Manager, and violence in the workplace and other personnel management training.

Laramar has three elements to Laramar’s crisis management planning. First, we have emergency procedures at each local community which includes employee and resident emergency preparedness instruction. The second part is planning at the corporate level whereby we have a corporate crisis plan that includes procedures for our global team response given any Laramar location disaster or incident and references critical department plans such as IT. Third, we have corporate location emergency procedures for corporate personnel.

RISK/SAFETY INSPECTIONS Every region has a designated Area Maintenance Coordinator who is the most experienced site-level Service Manager in that region. The AMCs have been certified in OSHA and safety courses, and are responsible for enforcing the Laramar Programs that apply to the maintenance team and to identify new ideas in the field that can be test and, if proven successful, be added to the Operating Platform.

Laramar provides annual training at the community level regarding emergency procedures which includes media instruction. Our corporate location flipchart includes media contact procedures. This team ensures full compliance with all OSHA and insurance objectives. Area Maintenance Coordinators in each region also complete quarterly safety inspections of each property. Insurance reporting for employee related incidents is handled directly by our internal Risk and Safety Department. Any property related incidents are handled as instructed by the client and reported as such to the client’s insurance and risk department. All legal complaints are directed immediately to the Regional Manager and Risk and Safety Department. Typically, the Risk and Safety department will directly report to the Regional Manager and then the RM will communicate with the client as necessary. RISK/SAFETY TRAINING Loss prevention and control are reinforced through hands-on training of site personnel on effective handling of accident investigations and claim handling.

The AMCs hold monthly meetings with the Service Managers in their region to enforce compliance, get feedback and solicit new ideas. They also perform quarterly Risk/Safety inspections at each property to ensure compliance with OSHA guidelines, Laramar policies and inspect all safety equipment Every shop is organized in a standard Laramar format using Laramar’s Standardized Shop Colors which allows for easy inspection – this standardization also allows for associates to transfer to other properties and immediately know how the shop operates. OTHER RISK/SAFETY HIGHLIGHTS Laramar has a specialized Workers’ Compensation orientation training for supervisors, online claim handling and reporting, Return to Work Program with modified duty program. Our environmental compliance includes asbestos awareness, lead poisoning, moisture intrusion and O&M programs and training. In addition, HUD and employer’s liability are managed by a seasoned HR/risk management staff coordinating EEOC, Fair Housing and ADA compliance. 34

4.2 RISK MANAGEMENT // INSURANCE

RISK MANAGEMENT // INSURANCE Valerie Clark – Asst Vice President, Risk and Safety • ANY and ALL legal notices and demands • Company litigation management • Contract review • EEOC, Fair Housing, Discrimination complaints • Company representative for media relations calls • Laramar entity management • Contact for company emergencies and disasters

Patrice Kraly – Sr Claims & Insurance Specialist • Property and liability claim reporting and management for Laramar owned properties • Workers Compensation o Management of all Workers Comp claims / assistance with Medical Clinic notices o Injured Worker’s Return-to-Work / Light Duty Program • Assistance in incident and claim reporting / handling for clients insurance-related questions and certificates

Mary Schnettler – Sr Vendor Compliance Specialist • Vendor registration process at Laramar including o Vendor service agreements o W-9’s o Vendor insurance requirements • Liaise with Laramar Contract department for service vendors INSURANCE Insurance premiums are reduced through Laramar’s fully staffed Risk and Safety Department headed up by Valerie Clark, Assistant Vice President of Risk/Safety. Every property has quarterly risk/safety inspections to ensure compliance with OSHA regulations and that all safety equipment is available and working properly.

Julie Cvetezar – Sr Safety & Environmental Specialist • Safety and Environmental (OSHA and EPA) compliance and questions o Training and PPE o OSHA 300 log compliance and record keeping • Asbestos, Mold and Lead-based paint programs, inquiries, inspections and citations • AMC program and property inspections • Laramar business licenses

5.0 PROJECT TEAM

ORGANIZATION & STRUCTURE // ONSITE AND CORPORATE SUPPORT TEAM

LARAMAR // EXECUTIVE TEAM

5.1 ORGANIZATION AND STRUCTURE

A DEDICATED TEAM FOCUSED ON YOUR NEEDS

Name

Title

Years of Experience

Jeffrey Elowe Marc Jason Thomas Klaess Bennett Neuman Steve Boyack Scott McMillan Benjamin Slad Shannon Baker

President & CEO Chief Financial Officer Chief Operating Officer Senior Vice President Investments Senior Vice President Asset Management Senior Vice President Accounting Vice President Investments Vice President Operations

Average

Years at Laramar

25 31 28 23 24 19 13 17

25 4 10 15 12 10 10 14

TROY FIELDS Troy Fields has been in the multi-family industry since 1993. He has 21 years’ experience in the Washington D.C. region and 4 years’ experience in the Dallas/Fort Worth region. Mr. Fields joined Laramar in August of 2011 and oversees 3,054 the Washington D.C. metropolitan region. The portfolio consists of class A and B assets with multiple interior and exterior capital projects. His strategies and leadership has produced a portfolio YOY income growth of 4.4%, NOI YOY growth of 7.1%, while reducing expenses YOY by 1.8%. Prior to joining Laramar, Mr. Fields was the Regional Vice President of Operations for Carmel Partners, where he was responsible for the management of more than 2,500 apartments across 18 properties in D.C., Maryland and Virginia. The portfolio included luxury mid and high-rises, rent controlled, and multiple extensive rehab assets in excess of $25MM. He implemented strategies that reduced controllable expenses by 15.1%, while increasing revenue by 8.7%.

Laramar Team Corporate and On-Site

5.2 PROPERTY TEAM SUPPORT STRUCTURE

AREA VICE PRESIDENT – DC METRO

Mr. Fields also was part of the introduction of The Bainbridge Companies to the Washington D.C. metropolitan area in 2007, where he managed 3,237 units with renovations in excess of $17MM. He established all operational standards and branding of Bainbridge in DC, with marketing, property documents/leases, and recruiting. He implemented and designed the scope of all interior rehabs and combined with the exterior program, managed expenses in excess of $15mm. Prior to Bainbridge, Mr. Fields was a Regional Property Manager with Archstone-Smith for 5 years where he managed 4,500 in the Washington D.C. metropolitan area with revenues in excess of $35MM per year and controllable expenses of in excess of $15MM per year. During his time at Archstone-Smith, he managed multiple lease ups, stabilized and renovation assets. He also prepared dispositions in the DC area. Mr. Fields was part of the implementation of the numerous technological rollouts including LRO and marketing initiatives over the years at Archstone. He began his career as a Leasing Consultant with Charles E. Smith and has held positions as an Assistant Community Manager, Community Manager and Senior Community Manger prior to becoming a Regional Manager. This experience gave him extensive knowledge of on-site operations prior to advancing to a Regional position in 2002. Mr. Fields has extensive acquisition and disposition experience, assisting and managing multiple transitions properties over the years. Mr. Fields currently has his CAM designation, ARM® designation and is a Candidate for the Certified Property Manager Designation. He is a member of PMA, NAA and IREM. Mr. Fields attended Virginia Commonwealth University.

REGIONAL MARKETING MANAGER â&#x20AC;&#x201C; EAST COAST Brian Stroud joined The Laramar Group in 2007, and has over 20 years of experience in the apartment industry. Originally with the Laramar team as Snell Isleâ&#x20AC;&#x2122;s Community Manager, Mr. Stroud was the key developer of the Marketing Strategy that contributed to the successful lease up of the 272 unit property. Along with these responsibilities, he was a Star Team Member, a Yardi Mentor and a Marketing Mentor prior to assuming his current role.

Laramar Team Corporate and On-Site

5.2 PROPERTY TEAM SUPPORT STRUCTURE

BRIAN STROUD

As Regional Marketing Manager, Mr. Stroud develops and implements the many facets of both training the site employees, as well as all aspects of the site marketing. This includes web site development, advertising and business development. Simply put, Mr. Stroud builds great teams: he identifies industry talent and both trains and mentors associates for success. His can-do attitude and success-driven mindset is utilized for extensive training programs across the national portfolio, and he has spearheaded many of the acquisition transition teams. In 2010, Mr. Stroud was presented with the Laramar Award of Excellence. His team at Snell Isle has been recognized with the Leasing Team of The Year in 2009 and the Program Implementation Award in 2010. Prior to Laramar, Mr. Stroud spent five years with AIMCO and two years with UDR, first as a Multi-Site Community Manager and then as the Director of Human Resources and Corporate Trainer for the Tampa Region. At AIMCO, he was responsible for developing the hiring program for both on-site and corporate staff, in addition to leading the monthly Leasing, Maintenance and Corporate training programs for the 14 area communities. He spent extensive time creating an AIMCO audit program for the three Tax Credit Communities and was also designated as the trainer for Tax Credit Compliance. At UDR, Mr. Stroud was appointed as the Tampa Bay Training Representative for The Bay Area Apartment Association, where he led classes in management skills and leasing training.

LARAMAR // BISHOPâ&#x20AC;&#x2122;S VIEW OPERATIONS & SUPPORT TEAM

Tom Klaess Chief Operating Officer

5.2 MANAGEMENT PLAN

Michael Burnaz VP of Construction

Jezrael Downer Area Maintenance Coordinator

Maintenance Supervisor

David Egeland VP of Mareting

Troy Fields Area Vice President

1 Community Manager

2 Leasing Consultants

Brian Stroud Regional Marketing Manager

1 Maintenance Supervisor

1 Service Technician

1.5 Porters

ACE Trainer (Support)

LARAMAR // BISHOPâ&#x20AC;&#x2122;S VIEW ON-SITE TEAM

5.2 MANAGEMENT PLAN

Tom Klaess COO

Troy Fields Area Vice President

1 Maintenance Supervisor

Community Manager

2 Leasing Consultants (1 part time)

1 Service Technician

1.5 Porters

5.2 PERSONNEL POLICY & STAFFING PLAN

PERSONNEL POLICY & STAFFING PLAN // BISHOP’S VIEW Our leasing office will be open 7 days a week during the following hours: Monday – Friday: 9:00 am – 6:00 pm Saturday: 10:00 am – 5:00 pm Sunday: 12:00 pm – 5:00 pm The proposed staffing and salary plan for Bishop’s View is as follows*: COMMUNITY MANAGER Salary: $60,000 plus 20% bonus (full time) The Community Manager is responsible for all operations on site, including setting goals for the team and rewarding top performance. This position will maintain a positive rental program, qualifying prospective residents, coordinating outreach and planning resident events. The Community Manager will also work closely with the Maintenance Supervisor to ensure maintenance requests are being addressed immediately and resident satisfaction remains high. The Community Manager will also maintain all proper building certifications, licenses and permits required by the local City and County Authorities.

LEASING CONSULTANTS (2) Salary: $17.00/hour (full time) / $13.00/hour (part time, 24 hours/week) Two Leasing Consultants will be hired with responsibilities that include reaching monthly occupancy goals, following up with traffic, executing daily marketing outreach and maintaining high shop scores. In addition, their duties include outreach marketing, even planning, resident retention and monitoring ILS sites and social media.

They will provide excellent customer service to all new/prospective and current residents. One Leasing Consultant position will be full time, and one position will be part time for additional weekend staffing and outreach marketing efforts. *Current associates will be interviewed and evaluated prior to transition in management. A decision will be made prior to management transition as to which associates will be retained. If retained, training will begin on the first day of management. The above salaries would be further evaluated and could be reduced after traffic trends are understood and the team is interviewed.

5.2 PERSONNEL POLICY & STAFFING PLAN

PERSONNEL POLICY & STAFFING PLAN // BISHOP’S VIEW SERVICE TEAM Laramar’s Area Maintenance Coordinator, Jezrael Downer, is based in Northern Virginia and his duties include the continued training and education of the Maintenance Supervisor and quarterly inspections to ensure the work areas remain OSHA compliant and standardized for maximum inventory management. MAINTENANCE SUPERVISOR Salary: $55,000 plus 20% bonus (full time) The Maintenance Supervisor position is responsible for the maintenance department. These responsibilities include oversight of all maintenance on site, performing quarterly preventative maintenance within apartments and annual inspections, while maintaining a capital inventory spreadsheet with close monitoring of all maintenance expenses to be within budgeted guidelines. This position will also respond to service calls, warranty issues, repairs, and administer capital projects and preventative maintenance. SERVICE TECHNICIAN Salary: $19.00/hour (full time) The Service Technician position will provide in-unit maintenance on non-warranty items, customer service, turnover needs of apartments when vacated as well as repairs and maintenance in all common areas of the property.

PORTER SERVICE (1.5) Contracted Out Cost: $3,000/month contracted out to save 31% with tax/benefit burden. This will not only give a savings in payroll burden, it will allow management quick evaluations and terminations if performance is not up to Laramar standards. The porter staff will include a staggered schedules to provide coverage 7 days per week. Their responsibilities include maintaining the common areas, hallways, elevators, trash rooms, parking garage, pressure cleaning of sidewalks, and cleanliness of the exterior grounds. The part-time porter would ensure common areas are clean during optimum weekend leasing hours *Current associates will be interviewed and evaluated prior to transition in management. A decision will be made prior to management transition as to which associates will be retained. If retained, training will begin on the first day of management. The above salaries would be further evaluated and could be reduced after traffic trends are understood and the team is interviewed.

Please refer to Laramar’s reporting supplement for the standard property charges detail.

Laramar Team Corporate and On-Site

5.3 PROPERTY TEAM SUPPORT STRUCTURE

TOM KLAESS

MARC JASON

CHIEF OPERATING OFFICER

CHIEF FINANCIAL OFFICER

Mr. Klaess joined Laramar in 2004. Mr. Klaess is a member of the Investment Committee and is responsible for all field operations, including portfolio performance and ensuring that all of Laramarâ&#x20AC;&#x2122;s systems and programs are implemented consistently in the field.

Mr. Jason is the chief financial officer, is a member of the executive committee and has overall responsibility for the financial operations of Laramar. Mr. Jason joined Laramar after seven years as CFO and head of asset management for BayNorth Capital, LLC, a real estate private equity firm in Boston.

Mr. Klaess directs the Regional Property Managers and site staffs on a continuous basis. Mr. Klaess joined Laramar after ten years with Archstone-Smith Communities, one of the largest and highly regarded REITs in the apartment industry. At Archstone, Mr. Klaess had many assignments, including managing operations for the Southeast Region. Prior to Archstone, Mr. Klaess held positions as Asset Manager and Regional Manager with NHP, Hall Financial and American Residential Management.

Prior to moving to Boston, Mr. Jason spent six years in London where he was chief investment officer for DigiPlex, a subsidiar y of The Carlyle Group. Mr. Jason spent six years with Security Capital Group and held the positions of chief investment officer for Access Storage Space, senior vice president for Security Capital European Realty and vice president at ProLogis Trust. Additionally, he was a senior vice president/finance manager for Trammell Crow Company. He is a CPA, a licensed real estate broker and a member of ULI, PREA, NAIOPâ&#x20AC;&#x2122;s Sustainability Forum and is on the Alumni Advisory Board for the Real Estate Academic Initiative at Harvard University.

Mr. Klaess attended Westminster College.

Mr. Jason received a B.S. degree in business administration/accounting from California State University, Fresno and graduated from the Advanced Management Development Program in Real Estate from the Harvard University Graduate School of Design. 44

Laramar Team Corporate and On-Site

5.3 PROPERTY TEAM SUPPORT STRUCTURE

STEVE BOYACK SENIOR VICE PRESIDENT OF ASSET MANAGEMENT & BUSINESS DEVELOPMENT Steve Boyack is responsible for oversight of Laramar’s asset management department and new business development activities. In his role as head of asset management, he is responsible for portfolio performance, financial reporting and investor relations. In his role as head of business development, Mr. Boyack focuses both on launching and expanding business initiatives, as well as growing Laramar’s relationships with institutional investors. Previously, Mr. Boyack served for four years as Laramar’s San Francisco Bay Area regional manager. Prior to Laramar, Mr. Boyack was a general manager with Draper and Kramer where he oversaw a Class A luxury highrise development on the Chicago lakefront. Prior to Draper and Kramer, Mr. Boyack was a property manager with RMK Management Company. Mr. Boyack has served on the board of directors of the Institute of Real Estate Management (IREM) and is a Certified Property Manager (CPM). He is also on the board of NMHC’s Sustainability Subcommittee. Mr. Boyack has a B.S. degree in economics, with a double emphasis in math and psychology from the University of Iowa.

SCOTT MCMILLAN SENIOR VICE PRESIDENT OF ACCOUNTING Scott McMillan is responsible for the oversight of all accounting functions at Laramar, which includes all property and corporate level financial statement production, client reporting, cash management, accounts payable, contract management, and vendor compliance. Mr. McMillan is also a member of the internal audit committee. Mr. McMillan joined The Laramar Group in 2004 prior to being promoted to senior vice president in the fall of 2011. Starting as the accounting manager for all fee management assignments nine years ago, he focused on building versatile policies and procedures that could easily be adapted to handle multiple clients with varying needs. As Mr. McMillan has grown with Laramar, he has built an accounting team that is committed to delivering high quality financial statements both accurately and on time. Prior to Laramar, Mr. McMillan worked at ABC Supply, one of the world’s largest building products distributors where he held several positions including internal audit and accounting manager.

Mr. McMillan has a B.S degree in finance with an emphasis in accounting from the University of Northern Iowa. 45

Laramar Team Corporate and On-Site

5.3 PROPERTY TEAM SUPPORT STRUCTURE

SHANNON KAY VICE PRESIDENT – OPERATIONS Shannon Kay joined Laramar in December 2001 and is responsible for due diligence and property transitions. Ms. Kay leads the complete due diligence process during an acquisition including all on-site inspections by Laramar teams (including Laramar’s Star Team) as well as third party inspections. On property transitions, she manages all logistics to ensure smooth transition of properties into Laramar’s consistent national operating platform. Ms. Kay also oversees the dispositions process for any asset that is sold out of the portfolio. For four years prior to her current role, Ms. Kay was responsible for all ancillary income including contract negotiations and ongoing management of utility reimbursements, video, voice, data, laundry and vending. She also managed the company’s national purchasing program with Wilmar, GE Appliances, Glidden Paints, Marietta Window Coverings and OfficeMax. Prior to joining Laramar, Ms. Kay was a marketing manager with CAP Logistics where her responsibilities included project/process management, inside/outside sales and providing customer service to some of their largest clients including GE and Caterpillar. Ms. Kay has a bachelor of science degree in business administration from Colorado State University.

MICHAEL BURNAZ VICE PRESIDENT – CONSTRUCTION Michael Burnaz is responsible for all day to day operations and strategic direction for the Laramar Construction Services Division to include Due Diligence, Value Add, Redevelopment, and Capital Projects. Mr. Burnaz oversees Project Managers throughout the US and our Contract Administration Team. Previously, Mr. Burnaz was national director of facility management for Roy Jorgensen Associates, Irvine, CA, responsible for daily operations and overall direction of its maintenance/construction division, overseeing all building operations and construction services spanning 2.7 million sq. ft. in 50 locations in 26 states. Prior to Jorgensen Associates, Mr. Burnaz was project manager for Avalon Bay Communities in Southern California, with a portfolio of 57 communities and 14,825 units. Prior to Avalon Bay, Mr. Burnaz was responsible for Code and Neighborhood Services with the City of Moreno Valley. A former U.S. Marine (Active Duty, 1986-1992) and Army Reservist (1994-1998), Mr. Burnaz has a B.S. degree in business from the University of Phoenix. In addition Mr. Burnaz is a Licensed General Contractor in California and holds several National Certifications through (ICC) International Code Council. 46

KRISTA WILSON

Laramar Team Corporate and On-Site

5.3 PROPERTY TEAM SUPPORT STRUCTURE

DIRECTOR OF FINANCIAL PLANNING & ANALYSIS Krista Wilson joined The Laramar Group in 2013 and is responsible for Budgeting/Forecasting, Analytics, Business Intelligence and Revenue Management. Ms. Wilson’s aim is to utilize the best processes and technologies to provide accurate budgets, valuable business analytics, as well as a highly-disciplined approach to Pricing. Since joining Laramar, she has been involved in budget planning and analysis for several new developments nationwide, as well as the acquisition of a 7,000 unit portfolio. She was responsible for the underwriting, forecasting and implementation of 65 budgets for this transition.

LEE MONTGOMERY ASSISTANT VICE PRESIDENT – IT & BUSINESS INTELLIGENCE Lee Montgomery, AVP of IT and Business Intelligence, is a Senior Operations, Finance and Accounting Executive with over 20+ years’ experience developing vision, processes and systems in the Real Estate and Hospitality industries. Mr. Montgomery’s responsibility is to provide technical I/T support, implement/train and manage company business applications as well as partner with internal customers to develop strategic technology initiatives in support of the Laramar portfolio of assets and potential acquisitions. Prior to joining Laramar, Mr. Montgomery was EVP of Operations for Wilkinson Asset Management. Previous to Wilkinson, he spent three years at Yardi Systems in an executive role responsible for consulting with clients to identify gaps in operational processes and developing initiatives using Yardi software solutions. In addition, he spent eight years at Apartment and Investment Management Company (AIMCO) as SVP Revenue Management and Business Intelligence which included the development of a Revenue Management System and a Business Intelligence process and platform. Prior to joining AIMCO, he spent 12 years at Norwegian Cruise Line as VP Revenue Management and Analytics and other numerous financial positions. Mr. Montgomery graduated from the University of Texas with a BBA in Operations in addition to receiving an MBA in Finance and Information Technology from the University of Houston. Also, he is a licensed CPA in the state of Colorado.

Ms. Wilson joined Laramar after 20 years with Archstone Communities. During her tenure there, she was involved in many high profile Corporate Finance projects, including re-organizations, mergers, SEC filings, privatization and IPO transactions. She was responsible for all aspects of property budgeting and periodic forecasting, including analysis and summarization of results, as well as design, implementation, system administration, training and support of the budget system and process. Ms. Wilson has a B.S.B.A degree in Finance from University of Texas – Dallas.

VALERIE CLARK ASSISTANT VICE PRESIDENT, RISK & SAFETY Valerie Clark started her risk management career in the brokerage environment managing complex accounts such as TCI, United Artists and Newmont Mining. She had the opportunity to head up the risk management departments at Time Warner Telecom and QCE (Quiznos) before coming to Laramar in January 2011. She assures that the risk management department is proactive in insurance coverage, incident management and safe work practices, to help protect property ownership, provide a safe environment to residents as well as safe work practices of the on-the-ground management. Ms. Clark holds a BS in Finance from the University of Colorado, Leeds School of Business and an MBA from the University of Colorado at Denver. Her professional designations include the ARM and CIC and she is currently a candidate for Fellow in Risk 47 Management.

6.0 TAKEOVER // PROPERTY PERFORMANCE

6.0 TAKEOVER // PROPERTY PERFORMANCE TRANSITION & MANAGEMENT PLAN // OPERATIONS & OPPORTUNITIES

6.1 MANAGEMENT TRANSITION PLAN

MANAGEMENT TRANSITION PLAN On the day of transition, management will deliver an introductory letter to each resident’s door at each property and attempt to personally meet as many residents as possible. This letter would introduce the new Community Manager, Service Manager and Laramar as a company.

All contracts and vendors are reviewed within the first week to ensure pricing is competitive and services are being delivered to Laramar standards. Shannon will coordinate all logistics to ensure a smooth transition of the property into Laramar’s National Operating Platform.

Laramar will interview all staff members prior to the transition and determine which associates will be offered continued employment. Our goal will be to retain as much talent as possible. Once the staff has been selected, we will immediately begin training programs focused on the individual’s areas of growth and the objectives of the property. We will develop a marketing program to maximize the property’s exposure in the market. In addition, since several Star Team Members are present in the Denver region, they will be available to help make the transition a smooth one. Ace Trainers (Agents for Continued Education) in the field will be recruited to aid in the takeover process, and help associates become accustomed to Laramar’s operations and systems.

Shannon’s team consists of a group of highly trained professionals in negotiating contracts, setting up bank accounts and managing the transition of the properties into Laramar’s National Operating Platform and systems.

Consistent Office Set Up and Operation Troy Fields will be the main contact in the field, and will supervise and approve all programs at the community. He will be assisted by the onsite team, as well as the D.C. regional team. Troy’s team will oversee a detailed file audit and set up all property inventories, along with inspecting vacant units. Troy will also be responsible for the property setup and the standardization of the office during the management conversion.

An invitation will be sent out for a “meet and greet” gathering so the residents can meet the new staff, including the Area Vice President, within the first week. We will stress Laramar’s open door policy and welcome interactions with the residents and solicit feedback. We will advertise our Resident Portal and the convenience of paying rent online. Monthly functions would be held in order to build a community atmosphere and also give the residents time to speak with the Community Manager in a pleasant setting. We understand the importance of communicating with residents, and we will ensure that there are established and effective communication lines with the Tenant Association. Laramar’s deep history in the marketplace will allow the residents to review our ratings online and ask questions to better understand the company and management plan.

Once Management Change Has Been Announced Shannon Kay, Laramar’s Vice President, is responsible for property transitions and on-boarding processes. As the contact in the corporate office, she and her team will be responsible for setting up office systems for the new management team and the property. She will also coordinate the file audits that will be conducted at the property to ensure documents are current and Laramar has everything it needs for a seamless transition.

Krista Wilson, Laramar’s Director of Financial Planning and Analysis, will create all reporting systems for the property. In addition, she will conduct portfolio analysis, including budgeting, forecasting and revenue management. She will work with our Construction team to deliver a working capital budget within 10 days of on-boarding the properties. She is assisted by Ken Fine and Chris Tefft, part of Laramar’s Financial Analysis Team.

By leveraging technology, the onsite team has easy access to all of the corporate office’s departments who will be supporting the property at transition through capital improvements and stabilization. 49

OPERATIONS & OPPORTUNITIES // BISHOP’S VIEW

6.2 PROPERTY PERFORMANCE

Laramar has implemented many innovative programs at properties that we manage. We have a deep knowledge and history in adding value to multifamily communities through both management transitions as well as major property renovations. CUSTOMER SERVICE Laramar customizes a performance plan for each community we manage. For Bishop’s View, Laramar believes that better management, along with creating higher standards for on-site personnel and a high level of involvement by Laramar support personnel, will work cohesively and lead to better performance. Our corporate support team with accounting, marketing, training, customer service and IT would benefit the overall operations for the on-site team when questions or concerns arise. In addition, Laramar’s customer service focus and high standards will be an integral part of the on-site staff’s training. Our continuous open door policy, combined with our 24 hour customer service line allows residents to voice concerns and offer suggestions to the management team. This involves training from the Regional Marketing Manager and the local ACE Trainer, as well as utilizing Kingsley surveys as a key performance measurement tool. We will focus on resident retention and renewals by using our 12-step renewal program to improve retention. RENTS & RENEWALS Rental increases on renewals would be generated by Yieldstar and reviewed by the Community Manager, Pricing Manager and Area Vice President on a monthly basis. The increases are approved by the Area Vice President prior to the Community Manager offering renewal solicitations. A market survey is completed weekly and reviewed by the Community Manager and Area Vice President. All notice rents will be reviewed and approved by the Community Manager and Area Vice President to ensure maximum rent growth. Yieldstar will be monitored closely to ensure no drastic fluctuations occur daily with market rentals. According to the Q4 2014 CoStar report, Cherry Hill’s occupancy rate was 96.9%, compared to the Philadelphia submarket’s average of 95.9%. For December 2014, Bishop’s View averaged 90% occupancy. To increase occupancy, Laramar will have two Leasing Associates focusing on web presence, follow up and outreach marketing. Weekly sales goals will be set and performance will be monitored by the Community Manager and Area Vice President. The model units and tour path would be walked daily to ensure both are in pristine condition. TURNOVER Focus will also be put on the turn schedule and time it takes to complete both a regular and rehab apartment turns. Laramar’s standard turnover time is 7 days, with the majority of turns being competed in 5 days. Apartment rehabs will be turned within 8 to 10 business days. Laramar’s Mid-Atlantic team has extensive experience and has successfully completed multiple similar projects for TIAA-CREF, such Owings Park, Park at Winterset, The Crossings at White Marsh and Columbia Commons.

6.2 PROPERTY PERFORMANCE

UTILITIES, CAPITAL PROJECTS, BAD DEBT There are additional opportunities to increase utility collections and lessen bad debt. More aggressive collection procedures will be put in place to include multiple calls, knocking on doors and consistent notices placed on doors. Timely court filings would also be closely monitored. Expenses are monitored not only by the Community Manager and Service Manager, but by the Area Vice President and the Property Accountant, based out of Laramar’s Denver corporate office. This collaborative effort ensures the budget is followed and expenses are reviewed on multiple levels and coded correctly. A heavy focus would be put on order management, overtime and proper approval process for requesting 3rd party contractor assistance. Capital projects are tracked and monitored on the Capital Project tracker. This is reviewed weekly with the Area Vice President until all projects for the fiscal year are complete. Large capital projects are managed by Laramar’s Project Manager, Community Manager and Area Vice President. OTHER OPPORTUNITIES Also included in Laramar’s performance plan for Bishop’s View: • We will assess all units that are currently vacant in the first weeks of management. • We will assess the current marketing program to determine opportunities for residents to socialize and network, which are key to resident retention and referrals. • Our marketing department will revamp the online presence for the property. The property will be added to our website which includes the ability for prospective residents to apply for an apartment online in real time, current residents can submit service requests, sign and renew leases online, and communicate with the management team in a timely way. Navigation through the website is achievable by computer, tablet or smart phone. • Our Reputation Management Team will focus on the initial reaction to the changes at the property to ensure that both existing and prospective residents’ needs are being met. • Our local team will look over service provider contracts to ensure that the best terms are being achieved. • Implement our National Purchasing Program to obtain the best pricing on products and services. • Assess and recommend to asset managers ways to reduce operating costs. • Leverage our portfolio in the Mid-Atlantic market to share best practices and incorporate creativity and originality in all management endeavors, fostering a dedicated commitment of service from all Laramar associates. We believe that with our detailed programs and National Operating Platform, we can improve staff and property performance. Our success as an investment and property management company begins with our people and the technology we deploy at every level of our organization. This successful combination drives performance and NOI, and delivers exceptional results. We strive to set a standard in apartment living, and to make each resident’s experience second to none. Every resident can be confident that our on-site and corporate staffs strive to provide quality and consistent services to each resident in the community.

At the end of the day, this is a people business and we feel that the ultimate success of every investment lies in the people on the ground. Laramar prides itself on its employees, selected for their experience and creativity, distinguished by professionalism and the ability to offer exemplary service at every level. The D.C. area team is a shining example of this sentiment – we have many resources and a very deep bench of highly competent and dedicated associates across all disciplines. 51

6.2 PROPERTY PERFORMANCE

OPERATIONS & OPPORTUNITIES // BISHOP’S VIEW The Area Vice President’s prior experience managing multiple interior and exterior renovation programs and large scale capital projects is incredibly beneficial. Below is a list Troy’s current and past properties/portfolios that he managed renovations and large scale capital projects. Present/Past Properties Owings Park 2012-present Park at Winterset 2012-present

Units 174 176

Projects Interior renovations and large scale exterior capital projects

Columbia Commons 2011-2014

200

Interior renovations on an as need basis. Scale determined by rent growth. Large exterior capital projects.

The Crossings at White Marsh 2011-2014

396

Interior renovations on an as need basis. Scale determined by rent growth. Large exterior capital projects.

Gates of Cipriano 2011-present Woodvale 2011-present Hunting Point

592

Carmel Partners 2008-2011

2,503

Bainbridge 2007-2008 Archstone Smith 2001-2007

3,237 3,200

Total

11,384

Interior renovations and large scale exterior capital projects

Interior renovations and large scale exterior capital projects. 376

530

Vinyl floor rehab program and large scale interior and exterior capital projects. Interior renovations and large scale exterior capital projects Strategized and managed renovations in excess of $25M for 18 assets which included the total repositioning of 2 assets by completely moving all residents and completing renovation lease up. Strategized and managed renovations of ten assets in excess of 23M. Strategized and managed renovations of six assets in excess of $15M.

7.0 MARKETING STRATEGY

7.0 MARKETING STRATEGY MARKET OVERVIEW // MARKETING & ADVERTISING // MARKETING PLAN DEVELOPMENT // MARKETING RECOMMENDATIONS // ANALYSIS

7.1 MARKETING & ADVERTISING

MARKETING OPERATING PLATFORM At Laramar, we understand that good marketing can drive traffic. Great marketing can connect customers with a brand and drive revenue growth. Laramar’s Marketing Department strives to position and brand our communities with an established identity that is recognizable, memorable and one that resonates with the target demographic. Our team’s focus is to constantly be thinking outside the box for innovative and effective methods to maximize NOI, drive rents and ensure marketing dollars are spent in the most efficient way. We also believe in telling a great story. To tell a story about our properties, Laramar’s marketing team conducts an in-depth review of the market, submarket and surrounding neighborhood. We love to create a narrative of what makes each property unique including local landmarks, trendy area restaurants, major employers and transportation avenues. This research is channeled into creating a specific resident profile for the community that details the target demographic, including age ranges, marital and economic status, as well as education levels. Community names and branding concepts are developed to engage and attract the target demographic. Once marketing programs are launched, the progress of each initiative is tracked to gauge its success. These customized marketing programs are constantly evaluated and updated, allowing Laramar to focus marketing dollars on the campaigns that have the highest success.

Furthermore, Laramar’s Marketing Department identifies key strategic partnerships and marketing opportunities based upon our assessments of the community. With a national presence, Laramar understands that no two neighborhoods are alike. Therefore, we strive to custom tailor our marketing efforts so they are relevant to each unique neighborhood. We evaluate each market to determine opportunities for our marketing efforts – we partner with local charities and organizations, stores and restaurants to set monthly or quarterly events where residents can further develop their relationship with the city and the community in which they live. Laramar’s Marketing Department leverages technology at every opportunity. Our technology allows us to increase efficiency, improve operations, minimize cost and maximize financial results. Our award winning, leading-edge use of technology exists in every program and at every level of the company. We work to educate our associates and residents on new technological advances, and incorporate these advances into all of our new and re-developed properties. We believe these key elements work to increase resident satisfaction and retention.

7.2 MARKETING & ADVERTISING

CHERRY HILL, NJ // SUBMARKET OVERVIEW Cherry Hill’s central location is a major strength of this market in the Philadelphia metro area. It’s a natural choice for commuters, although prominent businesses such as TD Bank and Pinnacle Foods call Cherry Hill home. Accessibility is key to this submarket’s popularity, and has contributed to its commuter culture. Residents of Cherry Hill are connected to Philadelphia in a variety of ways, via bridges, I-295 and the New Jersey Turnpike and the PATCO Speedline. Cherry Hill provides a “just right” atmosphere for those wanting a live, work and play environment, but also one that offers a more affordable living environment than Philadelphia, where Center City and the Art Museum/Northern Liberties neighborhoods command the most expensive rents in the city. Cherry Hill is not only attracting residents, but also landlords, as the neighborhood is affluent and boasts easy transportation routes to Philadelphia and the rest of New Jersey. In addition, Cherry Hill is the second largest employer and offers more than 55,000 jobs in the Camden County area. The submarket continues to be South Jersey’s economic center. Known as the “Eds and Meds” sector, employment in the area is home to Cooper University Hospital, Subaru America, Rutgers, Campbell Soup, Kennedy Health System, among others within Cherry Hill and the outlying Camden County area. Within 10 miles, Philadelphia is a vast resource of employment with Jefferson Health, Temple University, Comcast and UPS leading the way with more than 50,000 employees alone. The outlook for Cherry Hill is promising and remains strong, with occupancy rate was 96.9%, compared to the Philadelphia submarket’s average of 95.9%. Rent growth is forecasted at 2.0% or higher. More new construction is slated for Philadelphia, which could mean higher interest in Cherry Hill from renters. The metro’s stability should work to its advantage, and investor interest in Cherry Hill will be heightened in the coming years.

7.2 MARKETING & ADVERTISING

RESIDENT PROFILE The resident profile for Bishop’s View includes will include professionals, both male and female, between the ages of 30-50. The majority of this demographic earns between $50,000-$90,000 a year, however the Executive Suites earns between $100,000$150,000. This profile is comprised of primarily single and married residents in households, both with or without children. For the most part, they are white collar professionals drawn to apartments within an easy commute to downtown jobs, restaurants and entertainment. This profile is comprised of three main groups: • Executive Suites • Comprised mainly of people aged 30-45 years old • Disposable income for trendy fashion, jet setting, technology and the finer things in life; location is everything. • Owns a car that further defines who they are. They prefer to drive themselves over public transportation • In-home entertaining is a regular occurrence and often utilize common spaces to wine and dine friends • Investing in Cherry Hill for their future families, but not yet ready to own a home • Home Sweet Home • This group (40-50 years old) is well-established in their career with a disposable income for everyday luxuries and technology items. They have fashioned comfortable lifestyles, filling their homes with exercise equipment, TV sets, and pets. • Their apartment is their home and often their office so space flow and connectivity is essential. • Comprised of married couples without children, with upper-middle class incomes. • Movers and Shakers • 45-64 years old, and part of a wealthy suburban world of dual-income couples • Highly educated • Many own a small business and have a home office 56

7.2 MARKETING & ADVERTISING

Lifestyle Characteristics of All Groups • Order from barnesandnoble.com; shop at Nordstrom and Saks Fifth Avenue • Play golf and tennis • Prefer to furnish their homes with Room & Board and Design within Reach • Watch Saturday Night Live and NHL games • Drive BMW X6 or a Mazda CX-7 or a Land Rover • Drink coffee from Starbucks • Shop at Whole Foods • Technology: MacBook, iPhone/Droid, iPad, iPod, GoPro • Ultra tech- savvy • Appreciate work/life balance • Are loyal to brands that enhance their lives

Although much of this demographic is without children, for the Executive Suites group, they want to make an early investment in Cherry Hill, and take advantage of the area’s school system. The Cherry Hill public schools are among the top rated for the metro, far outranking the public school system in Philadelphia. For some of this demographic, it’s not unusual for couples to live in Cherry Hill but commute to downtown Philadelphia for work. With the location of Bishop’s View, the commute is easy, just across the Ben Franklin bridge. Another common scenario in this demographic is that an individual may work in downtown Philadelphia while their partner works in Cherry Hill. Bishop’s View close proximity to major healthcare and educations employers, as well as financial institutions, is an appealing aspect to local business professionals.

7.3 MARKETING & ADVERTISING

INTERACTIVE WEBSITE Laramar designs, builds and executes custom landing pages and websites. We incorporate advanced technology into our programming to ensure that the website is specially designed for the community. We understand that each property is unique, and we apply that knowledge to our management and marketing. This focused approach differentiates us from our competitors. Laramar works with several website vendors, in addition to our website partners Property Solutions and Blue Moon. These partnerships allow us to offer a fully integrated, online leasing experience. Since 88% of Millennials use mobile devices as their primary search tool, Laramar captures this demographic by creating a responsive website design that offers seamless navigation from desktops, tablets or smart phones. Our expertise helps us create a website that contains a focused, personal connection with the desires of our core audience. Our website provides the ability to search for that perfect apartment home by price, floor plan or square footage. With state of the art technology such as 3D animation, prospective residents can go from tour to lease execution all from their mobile device.

PROPERTY SOLUTIONS Leads are tracked and managed through Property Solutionâ&#x20AC;&#x2122;s site facing software, Prospect Portal. The leasing team is able to view and manage their leads or scheduled follow up for the day upon logging into the system. Associates can send e-mails about a special incentive, available unit type, or provide opening status updates to a group of prospects which is helpful during the lease up as the lead database is generated prior to opening.

Applications can be submitted online and are integrated with our Resident Screening provider and Yardi. Prospective residents receive immediate results on their approval status. Once approved, they are able to review and sign their lease electronically with Manager approval. They are then e-mailed a PDF version. E-leases are stored on both the Property Solutions and Laramar servers to ensure copies of the document are available if needed. RESIDENT PORTAL The Resident Portal allows for online rent payments via ACH or credit cards and submission and tracking of service requests. Leasing Associates can add, review and edit resident information for the online account. The Portal allows for residents to send emails to staff, create work orders, submit reviews, place classified ads and add social groups. Prospective residents can request information via Live Chat functionality or submit an online guest card for more information. For prospects trying to get a feel for their new neighborhood, we offer interactive maps which allow them to see proximity to local conveniences through walk, bike and transit scores. Prospects can print an electronic brochure, confirm pet policies and check reviews.

iPADS To meet the demands of the increasingly sophisticated renter, Laramar uses iPads with Site Tablet capability to provide a virtual leasing desk from any location. This provides immediate access for customers, and also provides a fast and efficient way to spend time viewing the features and amenities of the community. iPads allow leasing professionals to create a more personal, interactive and fun experience. Consultants can check availability, pricing and assist applicants with applying online from the Wi-Fi cafĂŠ or throughout 58 the tour instead of sitting at a traditional leasing desk.

BISHOP’S VIEW // MARKETING RECOMMENDATIONS

7.4 MARKETING RECOMMENDATIONS

Laramar’s Property Marketing team is responsible for on-theground implementation of national and local marketing programs at each community. This includes search engine marketing, online and traditional advertising, brand messaging and development, social media and outreach. The group also manages the development and creation of design briefs, brand messaging and identify development, collateral materials, community websites and marketing action plans to drive more than your fair share of qualified traffic to your community.

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Additionally, a PPC campaign would be recommended initially on a monthly basis. This will allow a continued ad presence for the community during future searches for other products and services. These banner ads connect directly with the website and can be a valuable source of follow up.

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It is suggested that a traffic analysis of all ILS ads be conducted to show current results. Should there be success in the largest advertisers such as Rent.com and Apartments.com, then a modified contract to showcase the community in the first 3 results should be implemented. If products like Realtor.com, Zillow, Apartment Guide, Apartment Finder are not performing enough to justify the expense, they may be evaluated again after the SEO program is initiated. The results could increase or remain flat. At that point, these ILS sources could be eliminated if underperforming.

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A product called Chatmeter would be put in place to provide web presence analytics and reputation management. It is a tracking dashboard that shows all ads, social media, Google, Bing and Yahoo presence all in one place.

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Craigslist is still highly effective in the marketplace as a free advertising source. A search for the community did show a handful of ads among many other competitors. The ad results were primarily floor plan images. There were no visible connections to the community name and the placement of contact information was not strong. • There are several resources that post templates with property images, contact info and community name placed more prominently. It would be encouraged to shift to PSI or Lease Star.

Laramar integrates both online and offline marketing strategies to generate optimal awareness, drive demand for the community and convert leases. A unique brand identity will be created for Verve to help communicate the key advantages of living at the property and the lifestyle that will be experienced as a resident. ONLINE PRESENCE Observations: The online presence is considered moderate. • A Google search for “Apartments in Cherry Hill” yielded only 1 paid result that was not linked to an advertiser such as Apartments.com or The Apartment Guide. The community was found 7th on the list. • A secondary search for ‘Apartments in Camden County” did not display the community on any of the initial 5 pages of results. A search for “Renovated Apartments” was the best search as the community was 3rd in results. • The ILS ads in place are effective but often place the property after the top five in search results. Apartment Guide displayed the community in the 9th position while Rent.com yielded the 8th position. Opportunities: The following opportunities have been identified to increase online efficiencies: • Although the community can be found with an organic search, a SEO campaign to take advantage of multiple keywords will generate better results for Bishop’s View. Including words like ‘Camden County, Camden School District, Outside Philadelphia, Renovated Camden, etc., will, collectively drive results much higher on the search page.

BISHOP’S VIEW // MARKETING RECOMMENDATIONS PROPERTY WEBSITE Observations: The Property Web Page seems functional and interactive. The links to the side offer great resources for social activity, restaurants, schools, shopping, etc. • However, photos listed on the front page do not represent the community. There is a 5 image layout where only one photo is an interior.

7.4 MARKETING RECOMMENDATIONS

• Additional photos of the community can be found but only as a tiny link on the bottom of the page or after clicking the “Get Started” tab. • The unit pricing is likely through a pricing engine such as Yieldstar since nothing is displayed outside of a prompt to call or complete a guest card for rates. • There is a nicely produced video tour that captures photos of interiors not listed in the photo gallery. Opportunities: • Imagery is key to the consumer for staying on a web page. It is recommended that multiple photos be uploaded to both the landing page and the image gallery. A photo tab should be included on the home page as well.

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Through PSI integration, the entire process of inquiry, application, lease execution, payment, service request and office team communication can be handled on line and electronically. These benefits would be showcased on the webpage in an easy to understand format that focuses on convenience.

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Additional resources for the community residents such as social groups, classified ads and reviews are recommended for the webpage.

Recommendations: Laramar recommends changes to the website focusing on imagery, convenience to the prospect and resident and interactive flexibility through PSI integration. A photography campaign to highlight common areas, renovation, amenities and multiple unit interior images is encouraged. Advertising will be enhanced through the use of both a SEO and PPC campaign while adjusting all ILS ads, internal Craigslist ads and Social Media presence. Reputation management is handled through the Chatmeter dashboard to ensure immediate attention to conflicting ad data, resident issues, customer relationships and opportunities to increase web presence.

• Pricing should be integrated with Property Solutions. Even with a pricing engine, unit selection and available dates will generate rates. Additionally, a unit description including price ranges should be added to the pages. • Although Social Media links are on the home page, larger icons and focus to these links should be emphasized. The FAQ page is not necessary and is currently too vague when this page can focus on the renovations, latest news, current incentives, etc.

BISHOP’S VIEW // RECOMMENDATIONS ANTICIPATED RENTAL RATES

7.4 MARKETING RECOMMENDATIONS

Our pricing strategy is to be competitively priced within our market, which will result in higher traffic volumes, more leases and reduced exposure. In the first weeks after takeover, Laramar will create a pricing matrix. Each individual apartment will be assessed and additional premiums will be added based on rehab, views, floor level, windows and any additional unique characteristics of the unit. Based on the current market survey, there is an opportunity to push rents at Bishop’s View. All competitors combined have an average price per square foot of $1.54, with Bishop’s View averaging $1.51. The competitive average effective rents are averaging $1,571, with Bishops View averaging $1,464. With the interior renovations, amenities and general curb appeal, Laramar anticipates Bishop’s View to perform in the upper tier of the immediate competition.

TURNOVER COSTS The expected average costs for turnover cost are as follows: • Paint - $350 • Clean - $125 • Floor Sand Refinish - $350 • Carpet Steam - $125 • Tub Reglaze - $150 • Tub and Surround Reglaze - $300 Not all items listed would be needed on each apartment. The stated rates are averages.

Pricing and specials are discussed every Monday, Wednesday and Friday on a weekly basis between the Area Vice President and the Community Manager. The Area Vice President will visit the asset weekly to check curb appeal and show unit condition. The market survey will be updated weekly. We will not only call the community and asking for pricing; we will be checking craigslist.com, cold calling and posing as prospective residents in order to get the most accurate market information. We anticipate occasionally offering one time up front concessions during the “slow season”, rather than offering deep amortized concessions. Waived application fees and reduced amenity fees are the preferable concession in lieu of an upfront rent concession. Renewal offerings are sent seventy five days in advance. Current lease agreements are required to give a sixty day written notice in order to vacate, while month-to-month residents are required to give a thirty day notice to vacate. Callbacks and follow up along with monthly renewal parties will be done to solicit renewal signings.

Please refer to the Market Survey for a comprehensive listing of competitive properties, and current rental rates for Bishop’s View.

RESIDENT RETENTION PROGRAMS

7.4 MARKETING PLAN DEVELOPMENT

Evaluating Marketing Performance // Resident Satisfaction Survey An avenue Laramar uses to measure both sales and customer service performance is through resident surveys with J. Turner Research. Quick pulse surveys are requested on a weekly basis using an automatic CSV feed from prospects who visit the community. Questions about their experience at the community, perceived value of the product offered and inquiries on their final apartment home selection provide immediate feedback and identify changes in the market trends or competitive set. Resident surveys are then conducted twice a year to assist with measuring and ensuring superior customer satisfaction levels. We value transparency, and we find that regular communication with residents is the best way to gauge satisfaction, increase resident retention and attract new residents. Many of the marketing programs that we will implement during lease up will continue after stabilization. Laramar makes an effort to create a community at each property that we manage, and for Bishop’s View, some of the resident retention programs we would implement are: • • • •

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“Yappy” hours where pet owners can interact socially and bring their pets Bike team and running club for residents Feature “Nights Out” for residents at local bars, music venues and local theatres Monthly appreciation events that are sponsored by the onsite staff for residents. These can be happy hours or Saturday breakfasts, but it’s an opportunity for the staff and the residents to interact Organize sports viewing parties or barbeques for residents

MARKETING METRICS The use of dynamic number insertion and guest card parsing work to show the origin of a lead and most effectively track the effectiveness of marketing dollars being spent. Laramar leverages technology by utilizing the most effective internet listing sites. We also use Google analytics to analyze our pay per click campaigns and track the number of visits prospects make to each website we are listed on. This helps us better understand which websites give us the most exposure, and therefore are the most effective at reaching qualified prospects. Property Solutions also allows us to effectively and efficiently track our marketing sources, as well as track individual property and leasing agent performance. Lead Conversion, Property Performance, Leasing Agent Performance and Calls Conversion Reports help us to see how effectively each property follows up with leads by measuring the rate of outgoing emails and the conversion rates of phone calls to appointments. These detailed reports help Laramar better understand each property and associate’s performance in their markets, and allows us to create a customized plan that will ensure each community’s success.

7.5 MARKETING ANALYTICS

MARKETING ANALYTICS Plan, Allocate, Measure & Manage Laramar realizes that data is right, every time. It has neither an opinion nor an agenda, and we have learned how to empower it to make us successful. Laramar leverages technology to maximize our marketing analytics, and we understand how to collect, analyze and interpret data to realize which assets are performing the best, and which areas of our business need improvement. Simply put, we employ a combination of data, systems, software and people to impact net operating income. This sophisticated approach is applied using the following principles: Plan, Allocate, Measure and Manage.

Proactively Allocating Marketing Budget Right-Timed Lead Generation: We review lease expiration profiles, occupancy trends and 60-day exposure reports to proactively increase (or decrease) marketing activity to meet the demand for leases. This proactive approach helps to minimize occupancy changes and maximize rent revenue.

Marketing Plans Defined Goals and Objectives: We develop detailed marketing plans with very specific goals to monitor progress towards revenue objectives. As part of the goal setting process, we define lease up targets, traffic requirements, conversion assumptions, cost per lead and cost per lease.

Measuring Performance Dynamic Lead Tracking: The use of dynamic number insertion and guest card parsing work to show the origin of a lead and most effectively track the effectiveness of marketing dollars being spent.

Localized and Optimized Marketing: Laramar understands the importance of customizing our marketing tactics for each asset. Therefore, Laramar specifies “localized” marketing tactics and customizes them for each property based on market, neighborhood, asset type and target customer to ensure the best results. For example, National ILS performance can vary from market to market. Apartments.com can be strong in major markets while ApartmentFinder.com can produce a better return is smaller metros. In addition, there are regional listing sites that typically generate more qualified leads than the national sites. We leverage aggregate performance statistics across our entire managed portfolio and apply that knowledge to new assets.

Test, Cull and Reinvest: Laramar knows that being nimble is critical to effective marketing. We apply a disciplined approach to measuring our results and go through a regular exercise of cutting our least effective marketing sources to reinvest in more effective tactics. We test new, unproven channels, but the “Cull and Reinvest” approach allows us to minimize non-effective marketing dollars and focus on the marketing dollars that maximize traffic.

Google Analytics: Measuring lead traffic to the Laramar website is critical to understanding which marketing partners and lead generation channels are performing. Google Analytics is not just a tool for measuring website hits and page impressions – we track macro conversion events on the website, such as email form completions, as well as micro conversion events, such as map views, floor plan views and email form abandons. These micro events happen with much higher frequency and are typically more indicative of a qualified prospective customer. Managing Leads Property and Leasing Agent Performance: The Property Solutions platform allows us to track individual property and leasing agent performance. Lead Conversion, Property Performance, Leasing Agent Performance and Calls Conversion Reports give us the tools to ensure leads are being worked and leasing velocity is optimized. Triggered Email Campaigns: E-mail is a powerful tool to keeping prospective renters engaged and the apartment community “top 63 of mind” during the research phase.

7.5 MONITORING & RESULTS ANALYSES

REPUTATION MANAGEMENT Reputation Management is an important aspect in developing the community brand. Laramar encourages feedback from our customers to sites such as apartmentratings.com and Yelp! In a 2011 online survey which included Laramar residents, 57.9% of 2534 year olds indicated their decision on where to rent was influenced by ratings and review websites. Not only do these postings improve organic SEO, they offer an opportunity to monitor our performance levels and quickly identify and resolve customer service concerns. Laramar centrally monitors feedback from apartmentratings.com, Yelp! and our company website to assist on-site teams with performance trends and customer responses. We respond to all compliments and suggestions so customers know that their voice is being heard. Marketing campaigns to request feedback from prospective and current residents are in place for all communities. A recent Satisfacts study about the online habits of prospective residents showed that 67% were not aware their community had a social channel. To promote our social presence, we solicit feedback from potential and existing customers. Printed cards are given following a community tour asking prospects if they “Liked” what we are doing or how we are doing it, to please provide their feedback on Yelp or Apartment Ratings.com. When residents log in to their resident portal on the website, reminders appear to request a review of the community. Residents are also provided with reminders and opportunities to submit reviews in amenity spaces such as business centers, resident lounge or Wi-Fi café.

SOPHISTICATED REPORTING SYSTEMS Laramar utilizes extensive and detailed reporting systems to help us maximize our management capabilities and ensure the success of each property we are involved in. Laramar provides clients with a full reporting package including real time information through MRI and Yardi, weekly reports and a comprehensive monthly reporting package including all financial statements and narrative owner's report. Weekly reports include occupancy, traffic, leasing, closing ratios and projected exposure. The monthly reporting package includes comprehensive "Ranking Reports" to track a wide range of metrics, which are measured across the portfolio to quickly identify outliers and opportunities for improvement. The monthly reporting package is distributed to our clients electronically. These reports are analyzed by our Operations teams and are used to benchmark our success nationwide. Included in these reports are an Expense Matrix showing all expenses year to date, a Budget Comparison Year to Date report, as well as a Key Performance Indicator (KPI) report. The KPI report provides “at-a-glance” reporting for all Laramar properties nationwide. These KPI reports offer an additional layer of tracking property activities. This report looks at each community individually, and provides detailed information on resident activity, revenue and expense management per unit, as well as detailed financial reporting.

8.0 PRICING & CLIENT REFERENCES

8.0 PRICING // CLIENT REFERENCES

OUR ALL-INCLUSIVE, SERVICE FEES PHILOSOPHY // CLIENT REFERENCES

8.1 FEES

At Laramar, we believe that fees should be simple and all-inclusive. Laramar does not believe in the common practice of charging separate fees for various corporate charges such as accounting fees, audit fees, corporate level software fees, regional or corporate travel, etc. Laramar’s philosophy is to draw a clear line between site level expenses and corporate expenses, and not charge back any expenses that aren’t clearly property level.

MANAGEMENT FEES The proposed property management fee for these assignments is 3% of gross revenue collected monthly. CONSTRUCTION MANAGEMENT FEES Should you elect to use Laramar’s construction services, we propose a construction management fee of 5% for all constructionrelated services on the project.

REFERENCES

8.2 REFERENCES

The services rendered for the clients below include property management, construction management and lease up of new projects. Additional references are available upon request. COVINGTON REALTY PARTNERS Marc Goldstein CEO Phone: 312.879.7538 Email: mgoldstein@covingtonrealtypartners.com Current Projects Under Management Vanguard Crossing, 206 units, St. Louis, MO Vanguard Waterfront Square, 194 units, Boston, MA EDGE PRINCIPAL ADVISORS Matthew Ross Asset Manager Phone: 212.547.2811 Email: mross@edgeprincipal.com Current Projects Under Management The Retreat at Danada Farms, 295 units, Chicago, IL

HARBOR BAY REAL ESTATE ADVISORS Tom Lund Co-Founder â&#x20AC;&#x201C; Principal Phone: 612.867.7654 Email: Tom@harbor-bay.com Current Projects Under Management The Nic on Fifth, 253 units, Minneapolis, MN* Latitude 45, 319 units, Minneapolis, MN *Currently in Lease Up PRUDENTIAL Tom Smith Asset Manager Phone: 770.395.8655 Email: tom.smith@prudential.com

Current Projects Under Management Loring Park, 163 units, Minneapolis, MN Left Bank at K Station, 451 units, Chicago, IL* The Fillmore Center, 1,114 units, San Francisco, CA* *Lease Up and Stabilization

BISHOP’S VIEW// MANAGEMENT SERVICES PRESENTATION