Our Mission Believe in doing the right thing.

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Cardinal Group’s management activities focus on two core lines of business: Student Housing and Urban Infill. In both

cases, the firm looks for well-located assets that are either under-managed or distressed due to physical deficiencies, imprudent

capital structures or land use restrictions. Depending on the partnership goals and investment opportunities, Cardinal Group

will devise a plan to maximize the risk adjusted returns. Often times, these plans may include undertaking extensive capital

improvement projects in order to increase rental rates, improve occupancy and contain expenses. Both strategies benefit from

demographic tailwinds that should produce strong demand for the foreseeable future. Cardinal Group has show great

success in its ability to appeal to the Eco Boom generation and will continue to outpace competition as it implements new ideas

and technologies in order to execute on the plan. The firm has offices in Denver and San Francisco, with ongoing projects in six states. Through its affiliate investment and

management companies, Cardinal Group Investments and Cardinal Group Management, the firm currently:

• Manages 19 student housing properties consisting of over 2,900 beds and was the 9th largest buyer of student housing

nationally in 20101 ;

• Holds a majority interest in a three-property, 167 unit urban apartment fund;

• Advises on a $3 billion (at full build-out) mixed-use urban redevelopment, and;

• Has provided third-party asset management for approximately $100 million of mixed commercial and residential

assets.

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1. Real Capital Analytics

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Believe in doing the right thing.

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C A R D I N A L C U L T U R E

1. Do the right thing, all the time

2. Build an open and honest relationship with communication

3. Be adventurous, creative and open minded

4. Be a team player and respect those you work with

5. Embrace change and new ideas

6. Bring your best each day and create fun

7. Pursue growth and knowledge

8. Do more with less

9. Be passionate and determined

10. Be humble

V A L U E S

The Cardinal Group culture embodies many different elements: it’s about improving as a team and having fun while growing

together, personally and professionally; it’s about achieving the improbable with fewer people and fewer resources; it’s about

openness, taking risks, and not being afraid to make mistakes. But most of all, it’s about having faith that if we do the right

thing in everything we do, every time, then we will succeed and build something great.

CardinalGroup.com

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Vision. CardinalGroup.com

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Property Management consists of a

multitude of responsibilities that must

work in unison for a community to be

successful. Cardinal Group takes a hands-

on and centralized approach to handling all

of these responsibilities. We deploy direct

oversight and support of our onsite

operations, which allows us to build teams

that buy into our strong Cardinal culture,

are directly accountable to the company

and are trained on our operating platform

and management systems.

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P R O P E R T Y M A N A G E M E N T

CardinalGroup.com

Property Management

Resident Life,

Relations & Services

Leasing & Marketing

Maintenance & Repairs

Financial Reporting & Budgeting

Capital Expenditures

Energy Efficiency

Contract Services

Turnover: Move-in & Move-out

Personnel Management & Training

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Effective asset management requires both a comprehensive understanding of the macro real estate environment, from land use

regulations to the state of the capital markets, as well as an understanding of the individual property and its position in the local

market. Cardinal Group’s Asset Management Team is responsible for each individual asset, across a geographically diverse

portfolio with a variety of risk-profiles. The core responsibilities of the Asset Management Team are as follows:

I. Manage Risk | Risk management entails a variety of disciplines, from compliance with land use and business

regulations, to obtaining appropriate insurance coverage. Most importantly however, risk management means

monitoring capitalization structures, operating budgets and capital improvement cash needs. All the while, managing

debt maturities.

II. Monitor Performance | The Asset Management Team works seamlessly with both the Acquisitions and Community

Management Teams to translate the original investment thesis into a workable management plan. The core of this work

involves processing extensive amounts of operating and financial data to both benchmark investment performance and

seek opportunities for improvement.

III. Evaluate & Execute Alternatives | Each asset presents unique opportunities for sale, refinance or reinvestment.

Cardinal Group’s Asset Management Team continuously monitors the general capital markets, as well as local leasing

and sale activities to evaluate alternative capital strategies. In particular, the firm looks for opportunities to redeploy

cash flow into existing projects when there are opportunities to compound capital at above-market rates of return

without transaction costs or additional debt risk.

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A S S E T M A N A G E M E N T

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A C O L L A B O R A T I V E A P P R O A C H

A L L A B O U T T H E T E A M

Cardinal Group utilizes a centralized control system with Cardinal directly supporting our onsite teams in the field. This

includes: accounting, marketing, asset and risk management, quality control and other general oversight functions. With

advanced web-based technologies the onsite teams get regular face-to-face interaction with Cardinal and can access real time

data to assess the operations of the community themselves. With the use of these technologies and centralized operational

support, our onsite teams have the time needed to focus on the most important aspects of operating a community. This system

provides control and efficiency and allows for scalable growth within Cardinal Group in order to provide above market services

to all of our communities.

C E N T R A L I Z E D C O N T R O L

CardinalGroup.com

Cardinal does not have “employees” and you do not report to your “boss.” Rather we model our business after a professional

sports team – high-octane, super motivated and focused on winning! We strive to be the best in each market we enter. Each

community poses new challenges and we hire the right people and train them to succeed. We do not shoot for 90% occupancy

and “stable cash flows” – rather we aim to be the top performers in each market - anything less in our mind is falling short.

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F I N A N C I A L M I N D S E T – A B O V E A L L E L S E

As managers of your assets, we are more focused on what matters to you: return on investment. Cardinal recognizes that our

number one job is to maximize return on investment while mitigating risk; therefore, we focus on being good stewards of the

trust that has been placed on us to manage and lead, not only the community, but the business side as well. Our team blends

financial experience and expertise with attention to detail and creative ways to achieve new revenue streams and trim expenses.

Because of our company’s own investments, we have a deep rooted understanding of the importance of the bottom line.

Diversified Revenue Stream

Controlling Expenses

CapEx Planning & Management

Mitigating Risks Higher ROI

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Integrity. CardinalGroup.com

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Cardinal Group has the expertise and ability to manage student housing communities all across the United States. Cardinal

has managed everything from high-rise communities in downtown urban settings to smaller apartment buildings in rural

markets. We realize that each market is unique and it is naïve to apply broad market dynamics across every student market.

We solve this by doing thorough, and regular, research to determine the true dynamics, competitive property performance,

supply and demand balance, University policies, points of contact and more, in each market.

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M A R K E T F O C U S – N A T I O N A L A B I L I T Y

N A T I O N A L C A P A B I L I T I E S

M A R K E T E X P E R I E N C E R E S E A R C H = T H E D I F F E R E N C E

CardinalGroup.com

Mkt. Rent $2,540 $2,416 $2,120 $2,180 $1,959 $2,025 $1,876 $1,800 $1,625 $1,300Adj. Rent $2,540 $2,416 $2,075 $2,057 $1,786 $1,732 $1,578 $1,502 $1,490 $1,255S.F. 1,200 1,788 1,600 1,362 1,185 1,320 1,434 1,434 1,320 1,340Mkt. per S.F. $2.12 $1.35 $1.33 $1.60 $1.65 $1.53 $1.31 $1.26 $1.23 $0.97

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On-line applications, iPad guest cards, electronic lease signing, mobile rent payments, social media and more. Today’s students

are completely enamored, and inundated, with technology – and so are we. We keep up with today’s student to ensure that our

management capabilities match their lifestyle.

CardinalGroup.com

T H E C A R D I N A L D I F F E R E N C E W O R D O F M O U T H

T O D A Y ’ S S T U D E N T

Google Search. Facebook. Apartment finder magazines. Yes, students use these resources to find a place to live. But the

majority of students do something much more basic – ask their friends! Cardinal focuses on customer service to make sure that

our residents are confident and self-motivated to recommend our communities to their friends. We also create marketing

strategies that are unique and “buzz worthy.” Therefore, in the off chance our residents don’t speak, we’ll make it a point to tell

everyone ourselves.

“ C O M P L E X ” T O “ C O M M U N I T Y ” Cardinal Group looks to turn apartment complexes into “communities.” We focus on establishing well organized resident life

programs that students want to attend – everything from sporting and social, to philanthropy and community outreach. By

establishing the right sense of community, Cardinal regularly boasts higher renewal rates than our competitors.

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D E M O G R A P H I C F O C U S

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iPad Leasing Experience Community Mascots Smart Phone Apps iPad Guest Cards Community Mascots Mobile Websites

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Experience. CardinalGroup.com

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WestMar Student Lofts represents one of the largest student housing turnaround projects in the country to date. At the time of purchase, then MetroPointe Lofts had the worst reputation in the Atlanta market and an occupancy of 10%. Students refused to live there and the Universities had “black-listed” the property for their students. Cardinal Group however saw opportunity and knew what MetroPointe could become – the market leader in Atlanta student housing. The community is an institutional quality, purpose built student housing asset just blocks from the Georgia Tech campus. Cardinal did a complete overhaul of the building and operations. The repositioning included the introduction of a strict pre-resident screening policy, a $2.6M capital improvement campaign that created a best-in-class amenity package, and a new management & leadership team focused on establishing the new WestMar Student Lofts as a “new | hip | redefined” living experience. Within one year, WestMar Student Lofts went from 10% to 100% occupancy and has become the leader in student housing in Atlanta.

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W E S T M A R S T U D E N T L O F T S – A T L A N T A , G A

D E S C R I P T I O N

F A C T S

P H O T O

CardinalGroup.com

Start Date Sept 2010

Location Atlanta, GA

Type High-rise

Occupancy at Contract 10%

Units / Beds 369 / 1,214

Universities Georgia Tech & Georgia State University

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Cardinal Group purchased this REO property in October 2009 from Berkadia Commercial Mortgage. The property is an institutional-quality asset comprised of 154-units (495-beds) located two-blocks from the University of Georgia’s campus in Athens, Georgia. For more than 10 years the property had a historical occupancy rate of 90%+ under local management. In 2006, an outside group purchased the property for $14.7 million, replaced the local management, renamed it, made poor business decisions, and ended up defaulting on their loan due to high vacancies. Upon Cardinal Groups purchase, more than $400,000 in capital improvements were immediately invested in common area amenities, unit interiors and rebranding the community. Within the first year of ownership, “The U” realized 100% occupancy. In less than two years, Cardinal has grown NOI by over 10%. “The U” has become a market leader in Athens, boasting the fastest lease up in the market the past two years of Cardinal managing the community. By focusing on customer service, we have achieve renewal rates above of 40% each year.

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U N I V E R S I T Y A P A R T M E N T S – A T H E N S , G A

D E S C R I P T I O N

F A C T S

P H O T O

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Start Date October 2009

Location Athens, GA

Type Garden

Occupancy at Contract 90%

Units / Beds 154 / 495

University UGA

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After two years of below market performance, the owners of The Inn at Auraria decided to bring in Cardinal Group to help turn the project around. Cardinal was retained for property and asset management, as well as project management services to oversee a $1M+ renovation / rebrand of the community. Immediately, Cardinal Group took action and developed a multi-phase redevelopment plan that focuses on security issues, reputation problems, and competitive disadvantages due to a lack of amenities. The asset is the best located student housing community in the market and Cardinal Group has developed a plan to unlock the value of its’ location. The property is currently under renovation and will be rebranded prior to next leasing season as, Auraria Student Lofts. The new community will feature: upgraded internet bandwidth and HD cable, a new entrance and leasing experience, additional security elements such as controlled access key fobs and elevator security cameras, and a new amenity package. Including: a fitness center, study/collaboration area, clubhouse and outdoor space. Cardinal Group will begin pre-leasing the new Auraria Student Lofts in 2012 with the goal of reaching full occupancy within one leasing season of takeover.

Start Date July 2011

Location Denver, CO

Type Downtown high-rise

Occupancy at Start 62%

Units / Beds 125 / 439

Universities Auraria Campus Universities

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T H E I N N A T A U R A R I A – D E N V E R , C O

D E S C R I P T I O N

F A C T S

P H O T O

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Knowledge.

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Del is primarily responsible for sales and marketing and all strategic capital improvement projects for

Cardinal Group. Del was previously a Director at Clear Creek Tahoe in Lake Tahoe, NV, a $300 million

luxury golf and home community in the Sierra Nevadas. He also served as the Director of Real Estate

Operations for Manchester Financial Group in San Diego, CA. At MFG, he focused on the design

development, project management and sales & marketing strategies for their existing and future

developments. He also assisted in developing a luxury hotel operating company, Manchester Grand

Resorts. Del has worked on the development of several high-profile resort and hotel properties in San

Diego, including The Manchester Grand Hyatt and The Grand Del Mar Resort. Del is a graduate of

Stanford University and holds a certificate in Real Estate from the University of California at San Diego.

Eric is primarily responsible for overseeing CGI’s acquisitions and managing development activities. He

has diverse experience in development, acquisitions, asset management, and financial and market

analysis. At the London Group Realty Advisors, he advised and managed on projects totaling over $3

billion. Eric has acquired multifamily properties throughout the Western U.S. and provides ongoing

advisory services for a privately held portfolio with investments across the US in various product types.

He has acted as property and project manager on complex urban developments in excess of $75 million,

primarily located in Chicago, Denver and Los Angeles. Eric holds a B.S. in Real Estate Finance and

International Business from Indiana University’s Kelley School of Business and holds a Master of

Science in Real Estate from the University of San Diego’s School of Business Administration. Eric is a

licensed real estate broker in California.

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E R I C F R A N K - P R I N C I P A L

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Jason is primarily responsible for the firm’s asset management and acquisition activities. Jason is a

former Director of Development Services for The London Group Realty Advisors where he performed

market and financial analysis and helped secure entitlements for more than $3 billion of residential and

commercial projects throughout California, Arizona and Colorado. Jason is a graduate of Stanford

University and holds a Master’s of Science in Real Estate from the University of San Diego’s school of

Business Administration. Jason is a licensed real estate broker in California and Colorado.

Alex is primarily responsible for CGI’s finance and internal operations. At The London Group Realty

Advisors Alex conducted financial feasibility analysis for all development types including urban in-fill,

master planned residential, commercial and mixed-use developments. He has analyzed deals in markets

across the country and in Mexico. Prior to his term at The London Group, Alex worked with the Sullivan

Group Realty Advisors, Inc. and as a Supply, Logistics and Finance Officer in the United States Marine

Corps, responsible for more than $150 million in government assets. Alex received his B.S. in Finance

from Miami University’s Farmer School of Business in Oxford, OH and his Masters in Business

Administration from the University of Chicago Booth School of Business.

O U R T E A M J A S O N L U K E R - P R I N C I P A L

A L E X O ’ B R I E N - P R I N C I P A L

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Tom is primarily responsible for daily management and operations of Cardinal Group’s existing

portfolio. Prior to joining CGI, Tom was a Manager with Development Planning & Financing Group,

Inc., a national real estate consulting firm specializing in municipal financing and special taxing districts.

Tom assisted in funding of over $300 million in public residential infrastructure through the issuance of

tax-exempt bonds. Tom received his B.S. from Miami University’s Farmer School of Business in

Oxford, OH with a major in Finance and a minor in Entrepreneurship. Tom is a licensed real estate agent

in the State of Ohio.

O U R T E A M T O M W A L D R O N - P R I N C I P A L

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Andrew is primarily responsible for facilities and project management and is instrumental in the

management and oversight of all capital improvement projects for Cardinal Group Management. Prior

to joining CGM, Andrew served as a Project Manager at Marx Okubo, a national real estate due

diligence and construction management firm. At Marx Okubo, he served as a national resource to help

coordinate the activities of their nine regional offices and 30+ project managers. Andrew has provided

consulting services on 130 properties and investments totaling over $3.5 billion. Andrew received his

Bachelor of International Affairs from the University of Georgia School of Public and International

Affairs, and also holds a Masters in Building Construction and Facilities Management from the Georgia

Institute of Technology, College of Architecture. He is an associate member of the American Institute of

Architects and is a LEED Accredited Professional in Building Design and Construction.

A N D R E W G L A D D E N – V I C E P R E S I D E N T , P R O J E C T M A N A G E M E N T