Apartment Complex

OFFERING MEMORANDUM

Oklahoma City, OK

Broker of Record: Toby Brown

DISTRESSED OPPORTUNITY

Confidentiality and Disclaimer

The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from The Brown Group and should not be made available to any other person or entity without the written consent of The Brown Group. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. The Brown Group has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, The Brown Group has not verified, and will not verify, any of the information contained herein, nor has The Brown Group conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. The Brown Group is a service mark of The Brown Group Real Estate Investment Services, Inc.

Non – Endorsement NoticeThe Brown Group is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of The Brown Group, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of The Brown Group, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

Broker of Record: Toby Brown

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Broker of Record: Toby Brown

Table of Contents�6 Summary of Terms �7 Investment Highlights �8-10 Property Summary�11 Market Comparables�12 Market Overview �13-14 Financial Analysis �15 Reconstruction Budget

Summary of TermsInterest OfferedFee simple interest in Pennington Place Apartments, a conventional multifamily apartment community that includes 40 units and 31,340 rentable square feet. The property is located at 3732 NW 23rd Street, Oklahoma City, OK 73107. Terms of Sale

The property is being offered free and clear.

Timing

All offers must indicate the length of the Due Diligence period and the Closing time frame.

Deposit

All offers must specify the amount and type of deposit to be made as well as increases upon the removal of any Due Diligence or Financing contingencies.

Investor Identification

The purchasing entity should identify the owners thereof and include a resume outlining their relevant ownership and/or management experience of the comparable properties, as well as a statement of their financials net worth.

HIGHLIGHTS

Ø OKC is one of the Top Ten Fastest-Growing Metro Areas in the NationØ One of the Top Potential Amenity Structures in The MarketØ 15 Minutes from Downtown Oklahoma City.

SITE DESCRIPTION UTILITIESØ Water: Owner Paid (Master-Metered)

Ø Electric: Tenant Paid (Individually Metered)

Ø Trash Removal: Owner Paid

CONSTRUCTION

Ø Foundation: Concrete Slab

Ø Framing: Wood Frame

Ø Exterior: Masonry (Brick)

Ø Parking Surface : Asphalt

Ø Roof: MansardMECHANICALØ HVAC: Central Forced Heat

Ø Wiring: Mostly Aluminum / Some Copper

Ø Number of Units : 40

Ø Number of Buildings: 5 Residential

Ø Number of Stories: 2

Ø Year Built/Renovated: 1963

Ø Rentable Square Feet : 31,450

Ø Lot Size: 1.71 Acres

Ø Cross Streets: NW 23rd & Portland

Investment Highlights

ØValue-Add Opportunity

ØDesirable Property Layout

ØHigh Historic Occupancies for Submarket

PROPERTY SUMMARY

Pennington Place is an apartment community on the West side of Oklahoma City. Comprised of 40 units sitting on a spacious 1.7 acres, the community is located on one of the metros most popular thoroughfares, iconic NW23rd Street. Lined with retail, restaurants and easy access to the community’s large medical facilities this property is sure to be filled as units are completed. OKC’s progressive plan as a city is steadily growing to the complete revitalization of NW 23rd Street.

PROPERTY OVERVIEW

NEIGHBORHOODThe asset is located on an OKC thoroughfare inside the neighborhood of Pennington/Musgrave. Resident of the neighborhood have a vested interest in the revitalization of this property. The immediate community supports many retail, service sector and healthcare related jobs. There is a high renter demand in this neighborhood due to its ease of access to many parts of Oklahoma City

PROPERTY STORY�The property has been vacant less than a year and is completely boarded up, thus the property will require rehab to bring it back to life. Exteriors have been painted, some new windows installed, new iron fence, landscape removal and clean up has been completed. Buildings are ready to start construction. Structurally, the buildings are solid, no signs of cracks or any structural integrity issues.

Market Comparables

Market OverviewOklahoma CityOklahoma City is the largest city in the state of Oklahoma. The city’s robust economy, diverse industries, low tax rates and a low cost of doing business has contributed to Oklahoma City ranking as one of the top cities for business and helped the city attract many notable companies and headquarters to the region. From 2004 to 2014 The city added 49,358 new jobs, an impressive 8.8% growth rate, making Oklahoma City among the leading metro areas for business expansion, relocation and job growth during this period. The city’s non-farm job count is projected to increase 2.3% in 2015, significantly above projections for other major MSA’s in the US. In 2013 alone, the city created 6,560 jobs through 200 projects and received more than $500 Million in capital investment. Notable companies which expanded their presence locally include GE Global Research Center, Paycom, Terex and AT&T. OKC is tied at #11 for lowest unemployment rate at 3.7% among metro areas with a population above one million in the U.S., according to the Bureau of Labor Statistics. Oklahoma City has received national media recognition in recent years for its population/job growth, economic vitality, big-league-city assets such as the NBA Oklahoma City Thunder. With its low cost of living, thriving diverse economy and current reformation the city has become a top destination for business, residents and investors. The city has reinvigorated its downtown and truly transformed the city, sparking significant private investment and new momentum.

GROWING ENERGY AND ALTERNATIVE-ENERGY INDUSTRY The region is home to two Fortune 500 companies in the energy industry and ranks among the nation’s top 10 in compressed natural gas and wind energy. DIVERSE EMPLOYMENT OPPORTUNITIES Oklahoma City’s economic base is diversifying beyond energy. Medical, government, healthcare and information technology are generating new jobs. POPULATION GROWTH Over the next five years, population and household growth will outpace the national rate, enhancing demand for goods and services such as healthcare and education.

Financial Analysis

Financial Analysis

Reconstruction BudgetEstimate Subtotal Units Total Cost

INTE

RIO

RE

XTE

RIO

R

Interior Total Cost : $407,800Exterior Total Cost: $182,000