MULTIFAMILY MANAGEMENT SERVICES

On behalf of Grubb Properties, I would like to thank you for your careful consideration of our multifamily management services. For 50 years now, Grubb Properties has been both a pioneer and a leader in real estate management throughout the southeast. The team we present to you is consistently focused on identifying strategies to create value for our clients. Our dedicated teams are organized and compensated to drive performance at the prop erty level, while we employ best management practices across the entire operations platform, and meet regularly to review performance and make recommendations to ownership. We are not just another third party manager because we also think like an owner. In fact, we have an ownership stake in the majority of the apartment communities in our management portfolio, making us highly motivated to achieve the best possible overall performance for every property. To help achieve this, our property management teams are supported by a full suite of in-house capabilities including information technology, human resources, marketing, project management, construction and investment services that can provide additional value when the assignment calls for it.

We look forward to a future of partnership with you in the success of your community. Kind Regards,

SCOTT BROWN, PRESIDENT

A LETTER FROM THE PRESIDENT

01

COMPANY HIGHLIGHTS, PROFILE, & EXPERIENCE

• Multi-Generational Real Estate Firm

• 50 Year Company History (since 1963)

• 100% Employee and Board Owned

• Vertically Integrated Real Estate Operating Company, with expertise in Acquisitions & Dispositions, Property Management, Asset Management, Investment, Leasing, Development, and Construction

• Southeast Operating Footprint (North Carolina, South Carolina, Georgia, Tennessee, Florida, Virginia, Mississippi)

• Combined 185+ years of industry experience

• Over 70% of Senior Team has been working together for over a decade

• Professional management experience of over 8,500 residential units

Featured Community - Quarterside Apartments, Charlotte, NC

PERFORMANCE & QUALITY STANDARDS

Featured Community - Sterling Forest, Raleigh, NC

02

• Consistently ranked as a top tier property manager by Invesco Realty Advisors for overall resident satisfaction as reported by Kingsley Associates • Winner of numerous community, regional, and national awards

• 25+ year track record of positive returns for value-add apartment acquisition transactions • Successfully grew the company’s apartment management portfolio by 44% in 2012

• Average occupancy for all stabilized apartments in 2012 was 94.5%

• Focus on revenue maximization through Yardi daily pricing product with properties experiencing as much as a 13.9% rent growth quarter over quarter • Reduced delinquency 69.3% in the first 12 months on an acquired property

PROPERTIES UNDER MANAGEMENT

Chapel Hill /Carrboro Glen Lennox

FayettevilleThe Enclave

Winston -SalemLink Apartments Brookstown

GreensboroThe Village Lofts

SOUTH CAROLINAGreenvilleSterling Pelham

Sterling Westchester

Beacon Ridge

GEORGIAAtlantaSterling Collier Hills

Sterling Oaks

VIRGINIARichmondLink Apartments Manchester

03

NORTH CAROLINACharlottePark South

Sterling Magnolia

Sterling Steele Creek

Quarterside Apartments

Raleigh Sterling Forest

Sterling TownCenter

STRONG INSTITUTIONAL RELATIONSHIPS

Featured Community - Quarterside Apartments, Charlotte, NC

• Fannie Mae • Freddie Mac • US Housing & Urban Development (HUD) • The Praedium Group • Federal Capital Partners

• Rubenstein Partners • Invesco Realty Advisors

• Nationwide Insurance Company

• Novant Health, Inc.

• Barclays Capital • Euro American Advisors

• Transwestern Investment Company

• Assurant, Inc. • Fairway Investments Ltd. • CBRE Capital

• Medical Mutual Insurance Company

• Investors Title Insurance Company

• Berkadia • TIAA-CREF • Principal Life • Pacific Coast Capital Partners

04

05

PERSONAL COMMITMENT / THE GRUBB DIFFERENCE

• On-site staff bonus programs custom designed to align with property goals

• In-house Information Technology department

• In-house Human Resources department

• In-house Accounting & Finance department

• Corporate Safety Committee focused on reducing property liability

• In-house Construction & Project Management services • Quarterly review of all assets under management by internal Investment Committee, including the President and CEO, to evaluate performance and make recommendations to ownership

• Real time market knowledge and active experience in the acquisitions and dispositions markets across the southeast

PROFESSIONAL MANAGEMENT SERVICES

Featured Community - Link Apartments Manchester, Richmond, VA

• Market Analysis

• Property Marketing & Community Outreach

• Preferred Employer Housing Programs

• Property Maintenance & Groundskeeping

• Leasing & Traffic Reporting

• Resident Screening/Background Checks • Risk Management

• Financial Administration & Reporting

• Asset Repositioning

• Energy & Utility Management

• Capital Improvement Programs & Project Management

• Investment Advisory Services for Acquisition/Disposition

• Lease Administration

• Resident Surveys & Blind Shops

• Fair Housing Training • Due Diligence

• Budget Planning & Cost Control

• Insurance & Real Estate Tax Monitoring • Recruitment & Screening • Information Technology Services

• Contract Negotiation

Grubb Properties employs industry award-winning Yardi Property Management Software and accounting solutions to ensure the most profitable pricing, streamlined operations, and comprehensive reporting for our clients and team.

VOYAGER – cloud based core property management and accounting platform

RENT MAXIMIZER – Daily pricing solution for multifamily residential

RENT CAFE – website, resident, and prospect portals

RESIDENT SCREENING – credit and background checks

PAYMENT PROCESSING – workflow automation of invoice for more efficient payment

06

Featured Community - Link Apartments Manchester, Richmond, VA

GREEN INITIATIVES

Grubb Properties’ commitment to energy efficiency runs deep throughout every aspect of the company’s business, from energy audits of properties, to daily office practices in the corporate headquarters. Sustainability is one of the key attributes of every employees’ annual performance review, and senior property managers bonus compensation is tied directly to utility performance. Additionally, the company has regularly hosted Climate Corps internships, in conjunction with the Environmental Defense Fund, focusing on the identification of energy saving opportunities. Grubb Properties has been a leader in energy savings since 1994 when it had its first energy audit and invested less than $100,000 in a property to then reap over $40,000 in annual savings. Now, every single property in our portfolio has its utility performance measured quarterly to identify best practices as well as improvements needed. The company’s CEO has served on the Board of the Environmental Defense Fund for six years, and continues to be active in environmental policy and stewardships. In addition to implementing recycling programs and energy saving measures in all communities, Grubb Properties recently completed construction on the first certified green* apartment community in Richmond, VA.

*Certified to be in compliance with the National Green Building Standard

Featured Community - Sterling Town Center Apartments, Raleigh, NC

07

CORPORATE OFFICES

CHARLOTTE4500 Cameron Valley ParkwaySuite 350 Charlotte, NC 28211P: 704.372.5616

CARY117 Edinburgh South DriveSuite 112 Cary, NC 27511P: 919.461.3950

LEXINGTON15 East Center Street Lexington, NC 27292P: 336.249.2194

E: info@grubbproperties.com W: http://www.grubbproperties.com