Crosswinds Apartments

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109 UNITS | 100% LIHTC

OFFERING MEMORANDUM

Crosswinds Apartments 910 Providence Road, Chesapeake, VA 23325

Crosswinds Apartments | OFFERING MEMORANDUM

PROCESS & TERMS

EXCLUSIVE LISTING: This portfolio is exclusively listed by Marcus & Millichap. CONFIDENTIALITY & COMMUNICATION: This agreement prohibits any contact with the site staff and/or ownership. The highest level of confidentiality is expected, any perceived breach of confidentiality can result in disqualification from the process. PROPERTY TOURS: The owner has specifically requested that all site visits be scheduled through AHA. Unaccompanied site visits are prohibited. Please do not contact the management company or site staff during this process. CALL FOR OFFERS: AHA will announce a Call for Offers date at a later time. INFORMATION ACCESS: Additional information is accessible by registration on the AHA website, which can be found at www. AffordableHousingAdvisors.com. Upon registering, you will receive e-mail updates during the marketing process along with information regarding Property Tours and a Call for Offers Date.

| TABLE OF CONTENTS

OFFERING MEMORANDUM | Crosswinds Apartments

TABLE OF CONTENTS

Investment Summary

Property Overview

Financial Analysis

Rent Comparables

Market Overview

EXCLUSIVELY LISTED BY

Broker of Record: Brian Hosey | Bethesda, MD | 202.536.3700 | Lic #: 0225247494

Crosswinds Apartments Chesapeake, Virginia

OFFERING MEMORANDUM | Crosswinds Apartments

INVESTMENT SUMMARY

Crosswinds Apartments | OFFERING MEMORANDUM

PROPERTY INFORMATION Property Name

INVESTMENT SUMMARY

Crosswinds Apartments 910 Providence Road Chesapeake, VA 23325 Chesapeake City County

Street Address

Marcus & Millichap is pleased to present the opportunity to acquire Crosswinds Apartments, a 109-unit affordable housing property located in Chesapeake, Virginia. This opportunity is being offered without an asking price.

City, State

County

Units

109 Units 90,884 SF 5.86 Acres 1975 / 2004

Rentable SF

INVESTMENT HIGHLIGHTS

Lot Size

Year Built/Renovated

LURA Maturity in 2033

Building Type Total Buildings

Garden Apartments

7 Buildings

Opportunity to Grow Rents to Net Max Allowable with Projected AMI Increase of 10.6%

Total Stories

2 Stories

Parking

164 Uncovered Spaces

Tax Parcel Number

0200000000150

Strong in Place Yield with Only 1% Annual Vacancy

LIHTC REGULATORY Development Type % Units Affordable

Very Well Located in Virginia Beach Metro Area

LIHTC - Rehab 2004

100%

Low Cost Provider in High Cost Market

State Agency

VHDA

Year Placed in Service End of Initial Compliance

2004

12/31/2018 12/31/2033

End of Extended Use

Qualified Contract Eligible

Yes

Section 8

Voucher (30 units or 28%)

Located in QCT/DDA 10-Year Chain of Title

No No

SCHOOL DISTRICTS Primary School (1-3) Intermediate School (4-5)

Georgetown Primary

Sparrow Road Intermediate Indian River Middle School Indian River High School

Middle School (6-8) High School (9-12)

| INVESTMENT SUMMARY

OFFERING MEMORANDUM | Crosswinds Apartments

Chesapeake, Virginia

INVESTMENT SUMMARY |

Crosswinds Apartments Chesapeake, Virginia

OFFERING MEMORANDUM | Crosswinds Apartments

PROPERTY OVERVIEW 02

Crosswinds Apartments | OFFERING MEMORANDUM

UNIT AMENITIES

Dishwasher

Oven & Stove

Vinyl Flooring in Kitchen & Bathroom

Balcony or Patio

Central Air Conditioning & Heating

Shower & Bathtub

High Speed Internet Access

Cable-Ready

COMMUNITY AMENITIES

Laundry Facilities

Playground

Outdoor Covered Mailboxes

Barbecue

On-Site Property Manager

24-Hour Emergency Maintenance

Pet Friendly

| PROPERTY OVERVIEW

OFFERING MEMORANDUM | Crosswinds Apartments

CONSTRUCTION / MECHANICAL Building Exterior

Brick Masonry Wood Framing

Building Framing

Patio/Balcony/Stairway

Concrete

Roof Type

Gable / Asphalt Shingle

Roof Last Replaced

2004

Wiring

Copper

Plumbing

Cast Iron

Air-Conditioning

Individual to Each Unit Individual to Each Unit

Heating

Water Heater

Gas - Individual to Each Unit

UTILITIES Service

Paid By Resident Resident

Company

Cable/Internet

Cox Communications

Electric

Dominion Energy

Trash

Owner Owner Owner

GFL

Gas

Virginia Natural Gas

Water/Sewer

HRUBS

*Water/Sewer & Gas Reimbursed by Residents - Allocated

FEES Application Fee

$35 Per Applicant

Administrative Fee

$99

Last Fee

10% of Rent Balance

Bad Check Fee

$50

Internal Transfer Fee

$250

Release/Relet Fee Key Replacement

One Month’s Rent

Pet Fee Pet Rent

$250 Non-Refundable

$15/mo. (limit 2)

Washer/Dryer Rental

$40/mo.

PROPERTY OVERVIEW |

Crosswinds Apartments Chesapeake, Virginia

OFFERING MEMORANDUM | Crosswinds Apartments

FINANCIAL ANALYSIS 03

Crosswinds Apartments | OFFERING MEMORANDUM

FINANCIAL ANALYSIS

PRO FORMA RENTS

PRO FORMA RENT/SF

% / $ DIFF. BETWEEN CURRENT RENT AND PRO FORMA

2022 MAX LIHTC RENT (GROSS)

2022 MAX LIHTC RENT (NET)

DISCOUNT TO NET MAX

UNIT COUNT

AVERAGE SF

CURRENT RENT

CURRENT RENT/SF

UTILITY ALLOWANCE

TYPE

AMI

1BR

60%

670

$756

$1.13

$910

$1.36

20%

$154

$1,053

$143

$910

17%

60% - Voucher

1BR - Voucher

670

$804

$1.20

$910

$1.36

13%

$106

$1,053

$143

$910

12%

2BR

60%

836

$877

$1.05

$1,087

$1.30

24%

$210

$1,263

$176

$1,087

19%

60% - Voucher

2BR - Voucher

836

$926

$1.11

$1,087

$1.30

17%

$161

$1,263

$176

$1,087

15%

3BR

60% 1,070

$1,035

$0.97

$1,233

$1.15

19%

$198

$1,459

$226

$1,233

16%

60% - Voucher

3BR - Voucher

1,070

$995

$0.93

$1,233

$1.15

24%

$239

$1,459

$226

$1,233

19%

Totals

109

90,884

$1,153,812

$1,398,852

21%

$1,629,156 $230,304 $1,398,852

18%

Averages

834

$882

$1.06

$1,069

$1.28

$187

$1,246

$1,069

BY BEDROOM

SET ASIDE

1 Bedroom

2 Bedroom

60% AMI

3 Bedroom

60% AMI - Voucher

TYPE 1 BR 2 BR 3 BR

60% Voucher TYPE

1 Bedroom 2 Bedroom 3 Bedroom

24 69 16

22% 63% 15%

60% AMI

79 30

72% 28%

60% AMI - Voucher

Totals

109

100%

Totals

109

100%

| FINANCIAL ANALYSIS

OFFERING MEMORANDUM | Crosswinds Apartments

AREA MEDIAN INCOME

CHESAPEAKE CITY COUNTY Virginia

$ 95,000

$ 90,000

$ 85,000

$ 80,000

$ 75,000

$ 70,000

AMI

$ 65,000

Non HERA Fair Market Rents Rental Limit

$ 60,000

2015

2016

2017

2018

2019

2020

2021

2022

FINANCIAL ANALYSIS |

Crosswinds Apartments | OFFERING MEMORANDUM

HISTORICAL & PRO FORMA CASH FLOW

TRAILING 12 MONTHS ANNUALIZED CASH FLOW

PROJECTED CASH FLOW

OPERATING REVENUE

T12 ACTUAL

T1 ANNUALIZED

PRO FORMA YEAR 1

Nov-21

Per Unit

Nov-21

Per Unit

May-23

Per Unit

Notes

Potential Market Rent

$ 1,185,017 ($ 19,491) $ 1,165,526

$ 10,872

100.00% (1.64%) 98.36% (0.57%) (0.09%) (0.16%) 97.54% 9.63% 7.48% 17.11% 114.65% 7.96% 0.01% 1.33% 1.51% 11.42% 0.78% 3.48% 1.21% 2.40% 6.16% 2.21% 2.95% 3.93% 9.83% 55.16%

$ 1,241,388 ($ 54,084) $ 1,187,304

$ 11,389

100.00% (4.36%) 95.64% (0.80%) (0.29%) (0.15%) 94.40% 9.19% 4.76% 13.95% 108.36% 5.27% 0.01% 1.34% 1.53% 11.53% 0.79% 2.03% 1.22% 2.42% 6.22% 2.23% 2.98% 3.97% 3.00% 44.53%

$ 1,398,852

$ 12,834

100.00%

(1) (2)

(Loss to Lease) / Gain to Lease

($ 179)

($ 496)

Gross Potential Revenue

$ 10,693

$ 10,893

$ 1,398,852 ($ 13,989)

$ 12,834

100.00% (1.00%)

Vacancy

($ 6,702) ($ 1,100) ($ 1,860)

($ 61) ($ 10) ($ 17)

($ 9,936) ($ 3,600) ($ 1,860)

($ 91) ($ 33) ($ 17)

($ 128)

(3) (4) (5)

Concessions

Collection Loss / Bad Debt

($ 2,225)

($ 20)

(0.16%) 98.84% 8.38% 4.35% 12.73% 111.57% 4.68% 0.01% 1.19% 1.36% 10.24% 0.70% 1.80% 1.08% 2.15% 5.52% 1.98% 2.65% 3.49% 3.00% 39.83%

Base Rental Revenue

$ 1,155,864 $ 114,123 $ 88,631 $ 202,754 $ 1,358,618

$ 10,604 $ 1,047

$ 1,171,908 $ 114,123 $ 59,084 $ 173,207 $ 1,345,115

$ 10,751 $ 1,047

$ 1,382,639 $ 117,263 $ 60,857 $ 178,120 $ 1,560,758

$ 12,685 $ 1,076

Expense Reimbursements Other Residential Income

(6) (7)

$ 813

$ 542

$ 558

Other Income

$ 1,860 $ 12,464

$ 1,589 $ 12,341

$ 1,634 $ 14,319

EFFECTIVE GROSS REVENUE

YEAR1PROFORMA

OPERATING EXPENSES Repair & Maintenance

T12ACTUAL

BUYERADJUSTED EXPENSES

$ 108,086

$ 992

$ 70,850

$ 650

$ 72,976

$ 670

(8) (9)

Contract Services

$ 125

$ 1

$ 125

$ 1

$ 129

$ 1

Security

$ 18,025 $ 20,554 $ 155,132 $ 10,637 $ 47,266 $ 16,408 $ 32,544 $ 83,627 $ 29,976 $ 40,094 $ 53,376 $ 133,563 $ 749,413

$ 165 $ 189

$ 18,025 $ 20,554 $ 155,132 $ 10,637 $ 27,250 $ 16,408 $ 32,544 $ 83,627 $ 29,976 $ 40,094 $ 53,376 $ 40,353 $ 598,951

$ 165 $ 189

$ 18,566 $ 21,171 $ 159,786 $ 10,956 $ 28,068 $ 16,900 $ 33,520 $ 86,136 $ 30,875 $ 41,297 $ 54,444 $ 46,823 $ 621,645

$ 170 $ 194

(10) (11) (12) (13) (14) (15) (16) (17) (18) (19) (20) (21)

Landscaping / Grounds

Personnel

$ 1,423

$ 1,466

Marketing / Advertising Administrative Expenses

$ 98

$ 101 $ 258 $ 155 $ 308 $ 790 $ 283 $ 379 $ 499 $ 430

$ 434 $ 151 $ 299 $ 767 $ 275 $ 368 $ 490

$ 250 $ 151 $ 299 $ 767 $ 275 $ 368 $ 490 $ 370

Electricity

Fuel (Gas & Oil) Water & Sewer Other Utilities

Insurance

Real Estate Taxes

Property Management Fee TOTAL OPERATING EXPENSES

$ 1,225 $ 6,875

$ 5,495

$ 5,703

NET OPERATING INCOME Net Operating Income (Bef. Reserves)

$ 609,205 $ 29,975 $ 579,230

$ 5,589

44.84% 2.21% 42.63%

$ 746,164 $ 29,975 $ 716,189

$ 6,846

55.47% 2.23% 53.24%

$ 939,113 $ 29,975 $ 909,138

$ 8,616

60.17% 1.92% 58.25%

Replacement Reserves

$ 275

(22)

NET OPERATING INCOME (Aft. Reserves)

$ 5,314

$ 6,571

$ 8,341

| FINANCIAL ANALYSIS

OFFERING MEMORANDUM | Crosswinds Apartments

HISTORICAL & PRO FORMA CASH FLOW

PRO FORMA FOOTNOTES (1)

PMR: Pro forma rents brought to the 2022 LIHTC net max allowable for Chesapeake City County in the VA Beach-Norfolk MSA. Rental limit has risen 10.65% over the prior year. (2) Loss to Lease: 0% of PMR. (3) Vacancy: 1% of PMR YoY. (4) Concessions: Burned off. (5) Collection Loss / Bad Debt: 0.16% of PMR YoY. (6) Expense Reimbursements: Fuel, water, and sewer reimbursement of 98%; T12 average inflated 3%. (7) Other Residential Income: Misc. income of $29k removed; adjusted T3 average inflated 3%. (8) Repair & Maintenance: Underwritten at $650/unit; inflated 3% YoY. (9) Contract Services: T12 average; inflated at 3% YoY. (10) Security Services: T12 average; inflated at 3% YoY. (11) Landscaping / Grounds: T12 average; inflated at 3% YoY. (12) Personnel: T12 average; inflated at 3% YoY. (13) Marketing / Advertising: T12 average; inflated at 3% YoY. (14) Admin: Underwritten at $250/unit; inflated at 3% YoY. (15) Electricity: T12 average; inflated at 3% YoY. (16) Fuel (Gas & Oil): T12 average; inflated at 3% YoY. (17) Water & Sewer: T12 average; inflated at 3% YoY. (18) Other Utilities: T12 average; inflated at 3% YoY. (19) Insurance: T12 average; inflated at 3% YoY. (20) Real Estate Taxes: Current tax bill inflated 2%. (21) Property Management Fee: Decreased to 3% of EGR. (22) Replacement Reserves: $275/unit.

FINANCIAL ANALYSIS |

Crosswinds Apartments Chesapeake, Virginia

OFFERING MEMORANDUM | Crosswinds Apartments

RENT COMPARABLES 04

Crosswinds Apartments | OFFERING MEMORANDUM

RENT COMPARABLES SUMMARY

PROPERTIES SORTED BY UNIT RENT

MILES TO SUBJECT

AFFORDABILITY PROGRAM

AMI RESTRICTIONS

YEAR BUILT

AVG. SF

AVG. RENT $1,575 $1,649 $1,490 $1,225 $1,130 $1,056

AVG. RENT/SF VACANCY

PROPERTY NAME

ADDRESS

The Morgan

111 Gateway Court 745 Eden Way N. 124 Fairwind Drive 1314 Kingston Way 200 Red Cedar Court 301 Oak Lake Way 704 Gainsborough Court 749 Green Tree Circle 717 Hunters Bridge Drive

3.2 2.7 5.2 3.2 3.3 4.1 4.8 4.3 4.4

MKT MKT MKT MKT MKT MKT

- - - - - -

2011 2012 2009 1976 1986 1990 1980 1990 1994

809 776 815 817 900 862 620 638 800

$1.95 $2.13 $1.83 $1.50 $1.26 $1.23 $1.60 $1.45 $1.10 $1.12 $1.56 $1.92 $1.53 $1.57 $1.43 $1.31 $1.08 $1.17 $1.17 $1.05 $1.40 $1.79 $1.40 $1.35 $1.42 $0.97 $1.49

5% 5% 4% 0% 0% 1% 0% 8% 0% 6% 2% 5% 5% 4% 0% 0% 1% 8% 0% 6% 3% 5% 5% 4% 0% 6% 4%

Aura at Towne Place

Pillars at Great Bridge Apartments Greenbrier Woods on the Lake

ONE BEDROOM

The Cedars at Greenbrier

Oak Lake Apartments

Cambridge Square Apartments

LIHTC

Affordable

$993 $926 $879 $753

Green Tree Apartments Woodbridge Apartments Crosswinds Apartments

MKT MKT

- -

910 Providence Road

LIHTC

60% 1975/2004 670

AVERAGES:

3.9

1994

782

$1,214

Aura at Towne Place

745 Eden Way N. 111 Gateway Court 124 Fairwind Drive 1314 Kingston Way 200 Red Cedar Court 301 Oak Lake Way 749 Green Tree Circle 717 Hunters Bridge Drive

2.7 3.2 5.2 3.2 3.3 4.1 4.3 4.4

MKT MKT MKT MKT MKT MKT MKT MKT

- - - - - - - -

2012 2011 2009 1976 1986 1990 1990 1994

1,117 1,157 1,136

$2,146 $1,766 $1,781 $1,325 $1,242 $1,191 $1,083 $1,057

The Morgan

Pillars at Great Bridge Apartments Greenbrier Woods on the Lake

925 950

The Cedars at Greenbrier Oak Lake Apartments Green Tree Apartments Woodbridge Apartments Crosswinds Apartments

TWO BEDROOM

1,102

925 900

910 Providence Road

LIHTC

60% 1975/2004 840

$880

AVERAGES:

3.8

1996

1,027

$1,449

Aura at Towne Place

745 Eden Way N. 111 Gateway Court 124 Fairwind Drive 1314 Kingston Way 910 Providence Road

2.7 3.2 5.2 3.2

MKT MKT MKT MKT

- - - -

2012 2011 2009 1976

1,392 1,436 1,332 1,142 1,070 1,326

$2,493 $2,016 $1,799 $1,625 $1,035 $1,983

The Morgan

Pillars at Great Bridge Apartments Greenbrier Woods on the Lake

Crosswinds Apartments

LIHTC

60%

AVERAGES:

3.6

2002

THREE BEDROOM

| RENT COMPARABLES

OFFERING MEMORANDUM | Crosswinds Apartments

5 4

RENT COMPARABLES |

Crosswinds Apartments | OFFERING MEMORANDUM

RENT COMPARABLES DETAILS

THE MORGAN

AURA AT TOWNE PLACE

PILLARS AT GREAT BRIDGE

PROPERTY DETAILS

Property Street Address

111 Gateway Court Chesapeake, VA 23320

745 Eden Way N.

124 Fairwind Drive Chesapeake, VA 23320

City, State Zip

Chesapeake, VA 23320

Miles from Subject

3.2 281

2.7 215

5.2 192

Units

Rentable SF

264,208

295,260

199,398

Vacancy

5.3% 0.4% 2011

5.1% 0.5% 2012

3.7% 0.0% 2009

Concessions

Year Built

Building Type Garage/Parking

Mid-Rise

Garden

Covered & Surface

Affordability Program

MKT

Management

S. L. Nusbaum Realty Co. Hercules Real Estate Services

Bonaventure Realty Group, LLC Bonaventure Realty Group, LLC

CushWake

Ownership

Nuveen Real Estate

FEES

Pet Rent

$25/Month

$40/Month

$0/Month

Pet Deposit

Non-Refund. Pet Fee

$399

$390

$300

Application Fee

$50

Admin. Fee

$35

$199

UNIT MIX

Unit Type 1 Bedroom 2 Bedroom 3 Bedroom

Asking Rent

Rent/SF

Unit Type 1 Bedroom 2 Bedroom 3 Bedroom

Asking Rent

Rent/SF

Unit Type 1 Bedroom 2 Bedroom 3 Bedroom

Asking Rent

Rent/SF

809

$1,575 $1,766 $2,016

$1.95 $1.53 $1.40

776

$1,649 $2,146 $2,493

$2.13 $1.92 $1.79

815

$1,490 $1,781 $1,799

$1.83 $1.57 $1.35

1,157 1,436

1,117 1,392

1,136 1,332

AMENITIES

Site:

Clubhouse, Elevator, Fitness Center, Grill, Maintenance On-Site, Package Service, Picnic Area, Playground, Property Manager On-Site A/C, Ceiling Fans, Disposal, Granite Countertops, Microwave, Walk-In Closets, Washer/Dryer, Window Coverings

Breakfast/Coffee Concierge, Business Center, Clubhouse, Controlled Access, Fitness Center, Gameroom, On-Site Retail

Business Center, Clubhouse, Fitness Center, Grill, Maintenance On-Site, Package Service, Picnic Area, Pool, Property Manager On-Site A/C, Ceiling Fans, Crown Molding, Dishwasher, Disposal, Microwave, Walk-In Closets, Washer/Dryer Hookup

Unit:

A/C, Balcony, Dishwasher, Eat-In Kitchen, Granite Countertops, Hardwood Floors, Heating, Stainless Steel Appliances, Storage Space, Washer/Dryer, Wheelchair Accessible

| RENT COMPARABLES

OFFERING MEMORANDUM | Crosswinds Apartments

RENT COMPARABLES DETAILS

GREENBRIER WOODS ON THE LAKE

THE CEDARS AT GREENBRIER

OAK LAKE APARTMENTS

PROPERTY DETAILS

Property Street Address

1314 Kingston Way Chesapeake, VA 23320

200 Red Cedar Court Chesapeake, VA 23320

301 Oak Lake Way

City, State Zip

Chesapeake, VA 23320

Miles from Subject

3.2 272

3.3 272

4.1 172

Units

Rentable SF

311,296

279,999

190,000

Vacancy

0.0% 0.0% 1976

0.0% 0.4% 1986

0.6% 0.3% 1990

Concessions

Year Built

Building Type Garage/Parking

Garden

Garden Surface

Affordability Program

MKT

Management

Clark Whitehill Enterprises Clark Whitehill Enterprises

Ripley Heatwole Company Inc. Ripley Heatwole Company Inc.

Greenbrier Management United Property Associates

Ownership

FEES

Pet Rent

$20/Month

$25/Month

$35/Month

Pet Deposit

Non-Refund. Pet Fee

$200

$375

Application Fee

$30

$50

Admin. Fee

$199

UNIT MIX

Unit Type 1 Bedroom 2 Bedroom 3 Bedroom

Asking Rent

Rent/SF

Unit Type 1 Bedroom 2 Bedroom

Asking Rent

Rent/SF

Unit Type 1 Bedroom 2 Bedroom

Asking Rent

Rent/SF

817 925

$1,225 $1,325 $1,625

$1.50 $1.43 $1.42

900 950

$1,130 $1,242

$1.26 $1.31

862

$1,056 $1,191

$1.23 $1.08

1,102

1,142

AMENITIES

Site:

Business Center, Clubhouse, Fitness Center, Grill, Laundry Facilities, Package Service, Playground, Pool, Property Manager &Maintenance On-Site, Recycling, Storage Space, Sundeck A/C, Cable Ready, Carpet, Dining Room, Dishwasher, Disposal, Heating, High-Speed Internet Access, Range, Vinyl Flooring, Walk-In Closets, Washer/Dryer, Window Coverings

Clubhouse, Fitness Center, Laundry Facilities, Maintenance On-Site, Package Service, Picnic Area, Playground, Pond, Property Manager On-Site, Sundeck A/C, Dishwasher, Disposal, Walk-In Closets, Washer/Dryer Hookup, Window Coverings

24-Hour Access, Breakfast/Coffee Concierge, Business Center, Clubhouse, Fitness Center, Gameroom, Grill, Pet Play Area, Picnic Area, Pool, Property Manager On-Site, Storage Space A/C, Balcony, Cable Ready, Dining Room, Eat-In Kitchen, Fireplace, Storage Space, Vaulted Ceiling, Views, Washer/Dryer

Unit:

RENT COMPARABLES |

Crosswinds Apartments | OFFERING MEMORANDUM

RENT COMPARABLES DETAILS

CAMBRIDGE SQUARE APARTMENTS

GREEN TREE APARTMENTS

WOODBRIDGE APARTMENTS

PROPERTY DETAILS

Property Street Address

704 Gainsborough Court Chesapeake, VA 23320

749 Green Tree Circle Chesapeake, VA 23320

717 Hunters Bridge Drive Chesapeake, VA 23320

City, State Zip

Miles from Subject

4.8 150

4.3 250

4.4 152

Units

Rentable SF

130,959

187,320

129,138

Vacancy

0.0% 0.3% 1980

6.0% 0.8% 1990

0.0% 0.1% 1994

Concessions

Year Built

Building Type Garage/Parking

Low-Rise

Garden

Garden Surface

Surface LIHTC GLICK GLICK

Affordability Program

MKT

Management

Templeton Properties Templeton Properties

Highmark Residential

Ownership

Starwood Real Estate Income Trust

FEES

Pet Rent

- - - - -

- - -

Pet Deposit

Non-Refund. Pet Fee

Application Fee

$30

$40

Admin. Fee

$100

UNIT MIX

Unit Type 1 Bedroom

Asking Rent

Rent/SF

Unit Type 1 Bedroom 2 Bedroom

Asking Rent

Rent/SF

Unit Type 1 Bedroom 2 Bedroom

Asking Rent

Rent/SF

620

$993

$1.60

638 925

$926

$1.45 $1.17

800 900

$879

$1.10 $1.17

$1,083

$1,057

AMENITIES

Site:

Business Center, Courtyard, Grill, Laundry Facilities, Laundry Service, Picnic Area, Property Manager On-Site

Laundry Facilities, Video Patrol, Volleyball Court, Walking/ Biking Trails

24-Hour Access, Clubhouse, Gated, Laundry Facilities, Picnic Area, Playground, Pool, Property Manager On-Site

Unit:

A/C, Disposal

A/C, Balcony, Cable Ready, Ceiling Fans, Dishwasher, Disposal, Heating, High-Speed Internet Access, Intercom, Patio, Range, Walk-In Closets, Washer/Dryer Hookup, Wheelchair Accessible

A/C, Cable Ready, Carpet, Dishwasher, Eat-In Kitchen, Heating, Microwave, Range, Refrigerator, Washer/Dryer, Washer/Dryer Hookup

| RENT COMPARABLES

OFFERING MEMORANDUM | Crosswinds Apartments

RENT COMPARABLES | 25

Crosswinds Apartments Chesapeake, Virginia

OFFERING MEMORANDUM | Crosswinds Apartments

MARKET OVERVIEW 05

Crosswinds Apartments | OFFERING MEMORANDUM

MARKET OVERVIEW

VIRGINIA BEACH METRO Hampton Roads, also known as the Virginia Beach-Norfolk-Newport News metropolitan area, is recognized for its miles of waterfronts and beaches, military presence, harbors, shipyards and coal piers. The metro is composed of James, Gloucester, Mathews, York and Isle of Wight counties in Virginia, and Gates and Currituck counties in North Carolina, as well as the cities of Virginia Beach, Williamsburg, Chesapeake, Norfolk, Newport News, Hampton, Poquoson, Portsmouth and Suffolk. Approximately 1.8 million people reside in the market, roughly 460,000 of whom are in Virginia Beach, the market’s most populous city.

METRO HIGHLIGHTS

Military Concentration The metro has the second-largest concentration of military personnel in the U.S., with nine military installations providing numerous jobs.

Hospitality and Tourism Visitors are drawn to Williamsburg and the multiple beaches and resorts, which offer a wide variety of activities for everyone.

Skilled Workers Technical knowledge learned in the military helps to provide a highly educated and skilled labor force.

| MARKET OVERVIEW

OFFERING MEMORANDUM | Crosswinds Apartments

ECONOMY

SHARE OF 2020 TOTAL EMPLOYMENT

• The local economy is best known for tourism and defense, but advanced manufacturing, maritime and logistics, cybersecurity and biomedical technology are growing sectors. • Fortune 500 headquarters include Norfolk Southern, Dollar Tree and Huntington Ingalls Industries. Other companies headquartered locally include Gold Key PHR, Harmony Investments, Anthem and Stihl. • The large military presence includes Naval Station Norfolk, Joint Expeditionary Base Little Creek-Fort Story, Naval Air Station Oceana Dam Neck Annex, Joint Base Langley-Eustis, Norfolk Naval Shipyard and Coast Guard Base-Portsmouth.

7% MANUFACTURING

14% PROFESSIONAL & BUSINESS SERVICES 11% LEISURE & HOSPITALITY 17% TRADE, TRANSPORTATION & UTILITIES

20% GOVERNMENT

ECONOMIC GROWTH

5% FINANCIAL ACTIVITIES

Metro GMP U.S. GDP

Annual Change

*Estimate **Forecast

5% CONSTRUCTION

14% EDUCATION & HEALTH SERVICES 4% OTHER SERVICES

MAJOR AREA EMPLOYERS

1. Huntington Ingalls Industries Inc.

6. Bon Secours

1% INFORMATION

2. Sentara Healthcare

Landmark Media Enterprises LLC

3. Naval Medical Center Portsmouth

8. International Paper

4. Newport News Shipbuilding

Arconic Power & Propulsion

5. Landmark Interactive

10. Mancon

MARKET OVERVIEW |

Crosswinds Apartments | OFFERING MEMORANDUM

VIRGINIA BEACH METRO QUALITY OF LIFE Known for its beaches and water recreation, the region has much to offer by way of outdoor activities and entertainment. Busch Gardens Williamsburg, Colonial Williamsburg, the USS Wisconsin and the Virginia Aquarium are prominent attractions that draw tourists and locals alike. Cultural activities are available at the Virginia Museum of Contemporary Art, Virginia Aquarium & Marine Science Center and Virginia Beach Amphitheater. Sports teams play at the Virginia Beach Sportsplex, Harbor Park and Scope Arena, while the Kingsmill Championship is held here as a part of the LPGA Tour. Universities include the College of William & Mary, Old Dominion University, Virginia Wesleyan College, Hampton University, Christopher Newport University and Norfolk State University. VIRGINIA BEACH METRO DEMOGRAPHICS • The metro is projected to expand by 52,500 people through 2025, resulting in the formation of 23,600 households during this period. • Median home prices that are above the U.S. level contribute to a homeownership rate of 61 percent, which is slightly below the national rate of 64 percent. • Approximately 31 percent of residents age 25 and older hold a bachelor’s degree; of those residents, 12 percent also have earned a graduate or professional degree.

2020 POPULATION: 1.8M GROWTH 2020-2025*: 3.0%

2020 MEDIAN AGE 36.3 U.S. MEDIAN: 38.2

2020 HOUSEHOLDS 657K GROWTH 2020-2025*: 3.6%

2020 MEDIAN HH INCOME $66,900 U.S. MEDIAN: $63,000

SPORTS

EDUCATION

ARTS & ENTERTAINMENT

*Forecast Sources: Marcus & Millichap Research Services; BLS; Bureau of Economic Analysis; Experian; Fortune; Moody’s Analytics; U.S. Census Bureau

| MARKET OVERVIEW 30

OFFERING MEMORANDUM | Crosswinds Apartments

PROPERTY DEMOGRAPHICS Within a 1-5 Mile Radius of Crosswinds Apartments

1-MILE 3-MILE 5-MILE

POPULATION 2026 Projection - Total Population 2021 Estimate - Total Population 2021 Estimate - Daytime Population HOUSEHOLDS 2026 Projection - Total Households 2021 Estimate - Total Households 2021 Estimate - Average Household Size

16,276 15,812 19,588

104,365 290,204 101,892 281,812 102,626 359,184

6,616 6,336

40,204 38,862

110,706 106,449

2.5

2.6

HOUSING UNITS Occupied Units 2026 Projection

6,943 6,639 3,762 2,574

43,118 41,579 22,249 16,613

121,158 116,047 60,207 46,242

2021 Estimate

Owner Occupied Renter Occupied

Vacant

303

2,716

9,598

Persons In Units (2021 Estimate) Total Occupied Units

6,336

38,862

106,449

1 Person Units 2 Person Units 3 Person Units 4 Person Units 5 Person Units 6+ Person Units

27.8% 25.4% 25.6% 31.1% 32.0% 31.8% 19.1% 19.0% 19.0% 12.8% 13.4% 13.5%

5.6% 3.6%

6.0% 4.2%

6.0% 4.1%

HOUSEHOLDS BY INCOME (2021 ESTIMATE) Average Household Income

$75,333 $80,358 $81,068 $60,338 $63,528 $64,246 $30,414 $30,806 $31,023

Median Household Income

Per Capita Income

POPULATION BY AGE (2021 ESTIMATE) 2021 Estimate - Total Population

15,812

101,892 281,812

Under 20

24.6% 25.7% 25.8% 21.6% 22.9% 23.9%

20 to 34 Years 35 to 39 Years 40 to 49 Years 50 to 64 Years

8.2%

7.4%

11.1% 10.8% 11.2% 17.0% 17.5% 17.8% 17.6% 15.7% 14.0%

Over 65

Median Age

37.3

35.9

35.2

MARKET OVERVIEW | 31

Crosswinds Apartments | OFFERING MEMORANDUM

LOCAL POINTS OF INTEREST Chesapeake, Virginia

PARKS & REC 1 Indian River Park 2 Level Green Park 3 Providence Park 4 Woodstock Cove Park 5 Diggs Town Recreation Center 6 Virginia Beach GROCERY 7 Beasley’s FarmMarket 8 Farmer John’s Market 9 Walmart Neighborhood Market 10 Kroger Marketplace 11 Food Lion 12 Save & Save Supermarket

Town Place at Greenbrier Greenbrier Market Center

Walmart

Dollar Tree

ENTERTAINMENT 22

AMF Indian River Lanes

Norfolk Botanical Garden

Regal Greenbrier

Topgolf

Scope Arena

Chartway Arena

EDUCATION 28

Greenbrier Primary School

Sparrow Road Intermediate School

MEDICAL 13 Sentara Leigh Hospital 14 Children’s Hospital of The King’s Daughters 15 Chesapeake Regional Medical Center

Indian River High School

31 Regent University

Norfolk International Airport

SHOPPING 16

SUBJECT PROPERTY Crosswinds Apartments Each Ring = 5 Mile Radius

KempsRiver Crossing

Greenbrier Mall

| MARKET OVERVIEW

OFFERING MEMORANDUM | Crosswinds Apartments

MARKET OVERVIEW |

Crosswinds Apartments | OFFERING MEMORANDUM

| PROPERTY PHOTOS 34

OFFERING MEMORANDUM | Crosswinds Apartments

CONFIDENTIALITY & DISCLAIMER The information contained in the followingMarketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. 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. Marcus & Millichap 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, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap 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. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2021 Marcus & Millichap. All rights reserved. Broker makes reasonable efforts to locate the most current property information available. Any person or entity who relies upon this information does so at their own risk. Broker makes no warranties, concerning the accuracy, completeness, reliability of this information. NON-ENDORSEMENT NOTICE Marcus & Millichap 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 Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus &Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers. RENT DISCLAIMER Any rent or income information in this offeringmemorandum, with the exceptionof actual, historical rent collections, represent good faith projections of potential future rent only, and Marcus & Millichap makes no representations as to whether such rent may actually be attainable. Local, state, and federal laws regarding restrictions on rent increasesmaymake these projections impossible, and Buyer and its advisors should conduct their own investigation to determine whether such rent increases are legally permitted and reasonably attainable. SPECIAL COVID-19 NOTICE All potential buyers are strongly advised to take advantage of their opportunities and obligations to conduct thorough due diligence and seek expert opinions as they may deemnecessary, especially given the unpredictable changes resulting from the continuing COVID-19 pandemic. Marcus & Millichap has not been retained to perform, and cannot conduct, due diligence on behalf of any prospective purchaser. Marcus & Millichap’s principal expertise is in marketing investment properties and acting as intermediaries between buyers and sellers. Marcus & Millichap and its investment professionals cannot and will not act as lawyers, accountants, contractors, or engineers. All potential buyers are admonished and advised to engage other professionals on legal issues, tax, regulatory, financial, and accounting matters, and for questions involving the property’s physical condition or financial outlook. Projections and pro forma financial statements are not guarantees and, given the potential volatility created by COVID-19, all potential buyers should be comfortable with and rely solely on their own projections, analyses, and decision-making. ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR AGENT FOR MORE DETAILS.

DISCLAIMERS |

Crosswinds Apartments Chesapeake, Virginia

EXCLUSIVELY LISTED BY

BROKER OF RECORD: BRIAN HOSEY BETHESDA, MD | 202.536.3700 | LIC #: 0225247494

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