The Glen at Lauderhill

Investment Highlights

Project Sponsor Priderock Capital Partners, LLC

Closing Date December 2008

Project Highlights

Submarket Lauderhill/Lauderdale

Description Distressed Acquisition/Apartment Renovation

Units 405

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Investment Strategy

Structurally and financially distressed apartment community (determined to be unfit for occupancy by the local municipality).
- Sustained significant damage during Hurricane Wilma.
- Mismanaged by previous owners seeking to convert the Project.
- Structural, legal, political and financial complexity.
Non-performing loan.
Alleged misappropriation of insurance proceeds on the part of the previous owners.
Blight on broader community since 2005.
Strong rental market fundamentals.

Current Status

100% complete with renovation program (finished ahead of schedule and under budget).
Currently 90.12% leased and 87.9% occupied vs. pro-forma occupancy of 85.2% for October 2010.

A comprehensive due diligence program that spanned a 6-month period was conducted to identify and mitigate a significant portion of the deal risk associated with the Project
Deal Risk	Sponsor Mitigation
Renovation Cost Overrun	Thorough asset level due diligence including a significant level of invasive/destructive testing and third-party forensic analysis. Completed 90% of entitlement work prior to closing. Highly detailed and broad based guaranteed maximum price contract executed with high quality, national general contractor.
Pro-Forma Operating Projections	Extensive local market knowledge (Priderock principals own and operate competitive properties in the immediate market). Extensive use of third-party research (Property & Portfolio Research, REIS, Axiometrics, local and national brokers). Detailed market survey (updated periodically during transaction execution).
Political	Completed 90% of permitting during the due diligence process (complicated and extensive approval process). Required local municipality to execute written agreements regarding their official position on all major building statutes/actions prior to closing.
Title	Acquired lien free title to the property by helping the seller navigate the local foreclosure process (negotiated discount pricing based on the acquisition of a note, but acquired title). Retained premier bankruptcy/foreclosure and land use counsel for South Florida to conduct an exhaustive review of the title and deal structure.

Side Facade	Frontage	Landscaping
Front Facade	Kitchen Area w/Bar	Major Appliances