ffres management services

IFairfi eld Management Services

FA I R F I E L DR E S I D E N T I A L


II Fairfi eld Management Services

925 Main | Grapevine, TX

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IIIFairfi eld Management Services


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Contents

Fairfi eld Residential Company LLC - Company Profi le Executive Organization Chart Development Services FF Development Organization Chart Due Diligence and Market Research Site Plans and Unit Plans Entitlements and Permits

Construction Services Conceptual Budgets and Estimating Consultant Management Construction Organization Chart Construction Management General Contracting Lender and Owner Representation Assessment and Rehabilitation of Existing Properties Quality Assurance and Quality Control Green Building Effi cient Project Management

Design Services Cost And Budget Analysis Standards and Development Interior Design Services Exterior Colorization Furniture, Fixtures & Equipment Procurement Signage Design Administration

Property Management Services Professional Management Operations Accounting and Financial Services Marketing and Media Services Maintenance ServicesAudit and Compliance ServicesInformation Systems Support Employee Development and Enrichment Opportunities Human Resource Expertise Market ResearchClient Insurance Program

Asset Management

Property Sales Transactions

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IV Fairfi eld Management Services

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Sanctuary | Renton, WA

1Fairfi eld Management Services


Fairfi eld Residential Company LLC

Fairfi eld Residential Company LLC is among the most experienced multifamily real estate operating companies in the United States. The Company was built around providing complementary services throughout the life cycle of a project to real estate investors. We provide acquisitions, entitlement, development, construction, redevelopment, property and asset management, and disposition services to our joint venture affi liates and to third party entities.

We are privately held and offer a diversifi ed product line including new construction of luxury apartment homes, university student housing, tax credit affordable housing properties, and redeveloped apartment homes in urban and suburban infi ll neighborhoods. We have specialized experience in mixed-use and transit-oriented attached housing communities. Fairfi eld traces its roots to 1985 when its current chief executive offi cer and a partner formed the Fairfi eld Companies. Fairfi eld reorganized in 2010, and Fairfi eld Residential Company LLC was formed supported by new equity from Brookfi eld Asset Management and our long-standing partner, California State Teachers’ Retirement System (CalSTRS).

We are active in 40 geographically diverse markets across the country and employ approximately 1,800 people, as well as numerous local contractors and subcontractors in the markets in which we operate. We have regional offi ces and administrative or specialty offi ces strategically located throughout the country to serve our operations.

As a responsible corporate citizen, Fairfi eld is committed to implementing cost effective “green” building programs wherever feasible.

Executive Organization Chart

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Lunaire | Goodyear, AZ

CEO & President

Christopher Hashioka

Development Acquisitions Construction

Property & AssetManagement

Operations

AccountingFinancial Reporting

Capital Markets

Perry RaptisSenior Vice President

Brent BallSenior Vice President

James HribarChief Financial Offi cer

Richard BoyntonVice President

Ted BradfordSenior Vice President

Michelle LordDoug Ness

Vice Presidents

Greg PinkallaChief Operating Offi cer

Legal

Jon MacDonaldGeneral Counsel


2 Fairfi eld Management Services

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The Cameron | Silver Spring, Maryland



Development Services

Fairfi eld develops, builds, and manages various housing types including affordable and market rate attached homes, university student housing, and mixed-income, mixed use, and transit-oriented apartment communities. We are experienced in inclusionary housing and tax credit properties.

Fairfi eld has a long history of success in multifamily development across the United States. Our development management teams have experience in over 40 core markets in 25 states including Arizona, California, Colorado, Florida, Georgia, Illinois, Nevada, North Carolina, Ohio, Texas, Washington, the Washington, D.C. metropolitan area, and New England.

We recognize the need to preserve or improve asset value through maintaining the status of permitted land use, site and building development, and creating value through rezoning. Fairfi eld’s long standing and time proven development strategy for each project is rooted in the fundamentals of the core services offered by our development management group.

Fairfi eld Development Organization Chart

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Rendering of Toscano | Miami, FL

Senior Vice President

Ted R. Bradford

Central Region Northeastern Region

Southeastern Region Mid-Atlantic Region

Development

Student HousingWestern Region

Tommy BrunsonJay Johnson

Larry Lee

Jay Johnson Zach JohnstonLarry Lee

Andy MontelliScott JacksonLarry LeeEd McCoy

Brendan HayesEd McCoy



At Fairfi eld, we work with our clients to establish and implement a custom development program for each opportunity. Whether the client’s goals are to create new development prospects or preserve existing assets, Fairfi eld has the team to ensure success. Our development management team offers value enhancement through these core services:

• preservation of existing entitlements and permits• due diligence and market research • fi nancial projections and proformas• sensitivity analysis to identify appropriate product type and unit mixes to best meet market demand and

achieve maximum returnsWe• prepare site plans to capitalize on property amenities and resources• create project schedules from due diligence through unit delivery • acquire land use approvals including rezoning, site development, and building permits• manage design professionals to ensure effi cient and buildable plans• establish project construction budgets and estimates

Since Fairfi eld has developed and built tens of thousands of apartment homes, we have a unique perspective that traditional consultants do not possess. We understand the importance of keeping the client fully informed and integrated throughout the entire process to ensure timely decision making, meeting scheduled milestones, and achieving the desired objectives.

We recognize that every phase of development is critical to the bottom line. Fairfi eld understands how important initial due diligence and market research is in establishing a fundamentally sound project. We strive to reduce or eliminate onerous project approval conditions, and we ensure that design plans are buildable within the project budget. Our staff recognizes the importance of each decision throughout the development and construction process.

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Talavera | Denver, CO



Due Diligence and Market Research

To successfully develop multifamily product, fundamental criteria must be met. The site must be adequately serviced by infrastructure, be physically suitable to support the construction, be market acceptable, and be politically supportable. Fairfi eld will evaluate all of these elements to establish whether a proposed development is feasible. During this phase of development, we establish a solid foundation on which future project decisions will be based. The due diligence information and market research will be used to:

• make recommendations on the most effi cient construction techniques to address physical challenges of the site

• suggest product type, unit mix and pricing• produce a product schedule and budget that includes the design, entitlement, and construction time

frames and costs• prepare an initial project proforma

Site Plans and Unit Plans

Each site holds opportunities and challenges that, when recognized, can substantially enhance the long-term viability of the asset. The Fairfi eld team understands the importance of proper site planning and unit design. We use our experience to create site plans that capitalize on aesthetic opportunities such as views, orientation to surrounding uses, sun patterns, and residential amenity locations on site. The goal is to achieve the highest possible value, so every element of the site and unit designs must be managed properly.

Entitlements and Permits

Project entitlements are critical to a fi nancially successful development project. Fairfi eld’s experience allows us to understand and successfully negotiate conditions of approvals, development agreements, and necessary permits in a timely manner and within project fi nancial parameters. Fairfi eld stays involved throughout the entire process. We work directly with local, regional, and federal jurisdictions, as necessary, to complete the entitlements and manage the design professionals throughout this phase to move the project forward.

Fairfi eld acts as the project representative with local governments and at neighborhood and public meetings, and we are diligent in our efforts to keep the client involved to make timely and informed decisions. It is important to have experienced multifamily developers on your team in case there are objections by the surrounding community. Our staff has a successful track record of achieving diffi cult entitlements. We work with neighborhood groups, agencies, organizations, and elected offi cials to achieve an approvable and buildable project that will enhance the neighborhood.

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Rendering of 15777 Quorum | Addison, TX



Lunaire | Goodyear, AZ

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Construction Services

Conceptual Budgets and Estimating

When a prospective site is presented, the Fairfi eld construction team begins collecting and synthesizing information affecting the design of the project, and establishes a conceptual budget to use in the initial feasibility studies. This allows Fairfi eld to manage the scope of work, costs of the design, and constructability issues so when the construction documents are complete, the project is within the proforma budget and no time is lost in redesigning and re-bidding the work. Consultant Management

Fairfi eld operates under a true design/build product delivery system, and hires and manages all consultants throughout the design, construction, and delivery process. We hire, manage, and direct the following professional consultants, plus others as required, throughout the development and construction process:

• civil engineers• soil & environmental testing consultants• architects, landscape architects and interior designers• structural, mechanical, electrical, plumbing and acoustical engineers• waterproofi ng, curtain wall, building code and elevator consultants

By providing estimating services and constructability reviews, Fairfi eld directs the professional consultants to produce effi cient and cost effective designs that are within the proforma budget. Through many years of producing quality projects, Fairfi eld has established a roster of professional consultants who work harmoniously with our staff of architects, construction managers, project managers, and superintendents.

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The Cameron | Silver Spring, MD



Construction Management

By using Fairfi eld as the construction manager, the developer/ owner is assured the best bids and most qualifi ed subcontractors are used on the job. With Fairfi eld signing all subcontract agreements and directly paying the subcontractors and suppliers, the developer/client is certain how and when the bills are paid. Fairfi eld will manage the consultants, estimate costs, produce preliminary and construction schedules, perform value engineering, calculate life-cycle costing, review the construction documents for constructability, and regularly inform the developer/client of progress and decisions required to stay on schedule.

General Contracting

Since inception, Fairfi eld has acted as its own general contractor. The long-lived relationships between Fairfi eld and regional subcontractors allow Fairfi eld to obtain the best pricing and to start work as soon as we receive the notice to proceed. Since 1997, we have been the developer, acquired all the entitlements required, and been the general contractor for nearly 70,000 apartment and condominium homes.

Fairfi eld’s seasoned staff of construction managers, project managers, and superintendents are adept at building garden apartments, urban apartments with concrete garages, and high rise apartments and condominiums. Our construction managers and project managers are involved from the beginning of the process by reviewing design documents and securing multiple bids. Fairfi eld verifi es the scope of all bids and ensures the fi nal contract price covers all facets of the work. Fairfi eld has built projects in nearly all Metropolitan Statistical Areas (MSAs) from coast to coast and has regional offi ces to effi ciently manage each development. Projects are delivered as promised due to the “hands on” management style of the construction staff.

Lender and Owner Representation

Due to the depth of experience of Fairfi eld’s staff in development and construction, representing the lender/ owner during construction ensures that clients will receive the product as anticipated. Effective communications between the lender/owner, design consultants, and third party contractors is paramount to the product delivery process. Fairfi eld’s years of experience in delivering projects to development partners ensures the client will receive accurate, complete, and timely reports regarding the status of the project. When an issue develops that requires a decision by the lender/ owner, Fairfi eld’s staff will investigate, collect, and present all pertinent documentation required to make an informed decision. Clients will receive monthly updates to the construction budget, progress schedules, safety programs, photographs, and

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Construction Organization Chart


Perry Raptis

Construction

Wayne LaLiberteVice President

Darwin SpillarVice President



staffi ng reports. Fairfi eld will help develop the schedule of values for tracking progress by the contractor and will review monthly applications for payment so the client is assured that the value of the claimed work and stored materials is accurate. If extensive testing of materials is required, Fairfi eld’s staff will manage this process and report the results to the client, as well as make recommendations based on the fi ndings.

Assessment and Rehabilitation of Existing Properties

Fairfi eld has a wealth of experience in inspecting and assessing existing properties considered for purchase or major renovation. When given authorization, we will assemble an experienced team, including professional consultants as required, to visit the property and start a detailed review. Fairfi eld develops customized reports to fully describe the present condition of a property, and to identify needed repairs and maintenance. All recommendations will be prioritized and estimated for review and consideration. Also, the report will address updating a property to meet current applicable building code(s) and ordinances imposed by the authority having jurisdiction. Fairfi eld has the staff to manage and complete all repairs or modifi cations approved by the property’s owner.

Quality Assurance and Quality Control

If a property owner or developer wants to implement a quality assurance (QA) program, Fairfi eld will review the scope of work, contract documents, and other applicable requirements, and will deliver a detailed program to the client for identifying the standards by which a project will be built. The program will include all referenced industry standards according to the project manual, inspection procedures, and testing requirements.

Loreto | Las Vegas, NV

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Fairfi eld has the ability to provide on site quality control (QC) inspections during the construction process, thereby ensuring adherence to the QA program. All proper techniques and procedures identifi ed in the QA program must be addressed by the contractor and coordinated with any testing agencies and the appropriate subcontractors. Fairfi eld will monitor the QC process and issue in-depth reports of all testing and inspection results to the owner or developer for review.

Green Building

Fairfi eld has created and implemented a “Green Building Program” for training all development, design, construction, and property management personnel in green building techniques. Staff members have extensive knowledge of USGBC’s LEED® Rating System, California’s “Build It Green” program, the Energy Star rating system, and the green building point system originated in Austin, Texas.

Fairfi eld has completed green rated buildings in Texas, California, and Connecticut. Several of Fairfi eld’s staff are LEED® Accredited Professionals who developed the “Fairfi eld Green Building Program” for training other staff members. These green professionals have presented lectures on green building materials and concepts to university students and other professionals, and to members of the Associated Contractors of America at their 2009 National Convention. Fairfi eld has the expertise to assist any owner or developer in the green building process, and to direct the design and construction teams to achieve the targeted green building goals.

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Pravada at Grossmont Trolley | La Mesa, CA | LEED® Certifi ed, Silver



Effi cient Project Management

Fairfi eld uses an electronic project management system called Projectmates by Systemates®. This powerful web-based tool provides effective management of requests for information (RFIs) and submittals, manages project budgets and contracts, and allows sharing of all posted documents. Throughout the design and documentation period, the professional consultants post the latest version of their drawings on Projectmates each week to coordinate the various disciplines and the construction staff throughout pre-construction.

Projectmates sends email notifi cations to the appropriate team members to advise them that updated drawings are available for their use. Projectmates “role based” security access ensures that the users have the appropriate rights to each of the 40 modules. This system increases the effi ciency and accountability of each team member. Day-to-day construction activities are tracked using the fi eld reports, meeting minutes, inspections, and photography modules. As-built construction documents and maintenance literature may be archived for future access by the design and construction teams, as well as operations and the facility management staff. This software provides a “win-win” collaborative effort between all team members.

screen shot of Projectmates Co

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597 Westport Apartments | Norwalk, CT | LEED® Certifi ed, Silver Pending



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Bailey’s Crossing | Alexandria, VA



Design Management

Fairfi eld’s design team studies each project to maximize the property’s future value. Whether it is new construction, a redevelopment project, or a minor makeover, proper consideration is made to aesthetics and overall theme. This evaluation allows the property to maximize the amenities and livability, and to enhance its marketability above the competition.

The Fairfi eld design team:

• meets with the asset management team to discuss short-term and long-term goals for the property prior to the start of any work

• initiates space planning and develops a list of potential improvements for budget analysis

• defi nes the overall scope of the design and begins construction documents

Cost And Budget Analysis

As a property owner, Fairfi eld understands that in the end, the numbers have to work. When developing the scope of design work, the design team creates preliminary budgets to contribute to the fi nal proforma. The design team does a thorough cost analysis of the items pertaining to design and construction. Past experience and pricing worksheets help determine possible costs and potential upgrades, which helps estimate hard costs before construction documents are available.

Standards and Development

Multifamily housing owners often duplicate successful designs when working on multiple deals. Creating design standards helps limit questions during the design and construction phases. Design standards help asset managers, as well as the property management and construction teams, to produce a consistent product that meets the expectations large companies have when building multiple projects simultaneously. Standardized fi nish packages and fl oor plans can also help to ensure code compliance. Fairfi eld’s design management team can create standards for both current and future projects.

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Design standards include:

• detailed unit fl oor plans with minimum spatial requirements and clearances

• standardized unit fi nishes for various project types (e.g. high rise, garden, and student housing)

• Guidelines for Green Building practices to assist in LEED certifi cation

• lists of acceptable products and vendors

Interior Design Services

Fairfi eld design management has full in-house design capabilities to produce drawings, specifi cations, and models. Whether a project needs a quick update or a complete overhaul, Fairfi eld can create winning designs to please the most sophisticated client.

Our designers provide space planning, color selections, and furniture specifi cations. The design management team can also contract and oversee outside design and architectural fi rms for projects that require extensive documentation. By acting on behalf of the owner, this management process ensures that outside consultants maintain schedules and perform within budget.

Exterior Colorization

Design management can also make exterior color modifi cations and specifi cations for both existing and new construction projects. On redevelopment projects, a fresh exterior and repainted interiors can often make the difference in project marketability, as well as drastically increase the value.

Color renderings are produced for review and approval before ever purchasing a single can of paint. It is also possible to digitally modify existing colors on buildings to see where changes need to made.

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Exchange at Auburn | Auburn, AL



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esFurniture, Fixtures and Equipment Procurement

Sometimes simply updating the soft goods can have a substantial effect on the value of a property. Often newer projects do not need any construction modifi cations; however, furniture, fi xtures, and equipment (FF&E) may need updating or replacement. Fairfi eld design management can specify and purchase FF&E for any property. Model homes, fi tness equipment, and pool furniture are good examples of items that can drastically update a property and enhance its marketability. By using quantity purchasing, cost is reduced to wholesale prices.

Signage

Property signage is an important step in characterizing a property. Fairfi eld design management has extensive experience in overseeing signage design and fabrication. Most communities have strict guidelines for signage, and our design team is adept at creating attractive monuments. By managing the outside consultants, our designers can alleviate future problems and also help maintain a consistency with the design and property theme. Requiring the signage consultant to produce detailed drawings also facilitates the approval process.

Design Administration

An important step in any project is the availability of consultants to answer questions asked by the construction team. Fairfi eld design management takes multiple steps to ensure questions get answered and problems get solved. Frequent site visits and progress reviews assist the construction team in quality control and lead to a smooth construction process. Site visits verify that the project is looking its best, and our designers inspect everything from paint jobs to the landscape to the faucet fi xtures.

Station 250 | Dedham, MA Signage samples 6515 Union | Denver, CO



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Presidio | Denver, CO



Property Management Services

Fairfi eld is proud to be an all-inclusive management services company with over 25 years of experience, which makes us among the most knowledgeable multifamily real estate operating companies in the United States.

With nearly 47,000 apartment homes in 40 distinct markets and submarkets throughout the country, Fairfi eld ranks17th on the 2011 NMHC list of the top 50 U.S. property management companies.

We have earned the trust of a wide range of clients including fi nancial institutions, pension funds, private partnerships, foreign investors, and sole owners. We are proud to deliver measurably superior results with a customized and personal approach to each property.

Fairfi eld is the perfect sized company to take the best care of your properties – big enough to offer exceptional expertise and effi ciencies, but not so big that we cannot offer you customized attention and focused implementations of your property management and value-add strategies. Strong leaders and experienced on-site teams, coupled with our range of services, make us the best choice for managing your property. You can rest assured knowing you have the expertise of hundreds of associates diligently working on your behalf.

The Fairfi eld business approach combines the strength, effi ciencies, and resources of a national company with superior local market expertise to consistently achieve the highest value and return for our clients and unsurpassed living environments for our residents. We are proud to have earned a reputation as an outstanding expert in managing a wide variety of properties including new construction, luxury market rate apartment homes, redevelopment and value-added properties, university student housing, and affordable housing communities.

Fairfi eld is experienced in managing properties of all sizes, from 50 to over 1,000 units, as well as all asset classes, product types, demographics, and geographies. Our associates’ competence in all facets of property management, from fair housing requirements and asset maintenance protocols, to lease term management and resident retention strategies, enables us to maintain your asset at its highest level, while continuing to drive positive NOI.

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Pr

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nt We are pleased to offer our clients a full array of disciplines. By taking advantage of each of

these services, you receive the full benefi t of Fairfi eld’s expertise and partnership.

• professional management operations with a dedicated team that manages like owners

• state-of-the-art and individually tailored accounting services

• marketing and media services

• full property maintenance programs

• audit and compliance functions

• outstanding resident services

• information systems support

• employee development and enrichment opportunities that give us happy, friendly, and eager-to-please property personnel

• human resource expertise

• market research

• client insurance program

Cielo | Denver, Colorado



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Professional Management Operations with a Dedicated Team that Manages Like Owners – Your Success is Our Success

Fairfi eld prides itself on management services that focus on protecting your investment and maximizing your return. Our properties are maintained in excellent condition, while our executive, regional and on-site management teams offer innovative ways to maximize income and reduce expenses. To this end, our seasoned property management professionals develop and execute detailed management and marketing plans, positioning your asset to reach its optimum performance.

Fairfi eld provides you with ongoing information on the economic viability of your asset based on property value, physical assessment, and fi nancial analysis. In partnership with you, we use this assessment to identify and recommend short-term tactics for improving property position and long-term strategies to optimize your fi nancial interest. Our value-driven regional and on-site teams are highly focused on reaching investment strategy goals with a high concentration on NOI and incorporating comprehensive forecasting tools. Our team of fi nancial analysts offers a host of extensive trend reporting and historical data to support strategic decision making to achieve your property and portfolio goals.

The Fairfi eld national buying advantage and maintenance cost savings benefi t your bottom line. Best pricing, rebate offers, bulk discount advantages, consistency in quality, and quick delivery are a few of the ways your property and NOI benefi t via the national relationship Fairfi eld has with our Professional Apartment Services (PAS) partnership and national affi liates.

We provide regular contact and communications with property owners and investors to create a strong partnership and focus on success. Our comprehensive presentation of annual operating budgets provides the opportunity to review past performance and make adjustments based on your additional objectives.

Our national portfolio offers you the benefi ts of our incredible national buying power and entitles you to substantial volume discounts that go straight to your bottom line. Fairfi eld has signifi cant buying power and national and regional discounts with top industry providers of computers, fl oor covering, paint, maintenance and capital items, marketing and media options, and software programs, to name just a few. Best pricing, rebate offers, bulk discount advantages, consistency in quality, and quick delivery are a few of the ways your property and NOI benefi t via the national relationship Fairfi eld has with our Professional Apartment Services (PAS) partnership and national affi liates. Importantly, we pass these savings on to our clients, which allows you to enjoy lower expenses and higher returns.

Lease Management Fairfi eld has developed a highly effective lease expiration program to maximize profi tability and minimize exposure. Our experience has proven that managing leases by the expiration date allows our managers to capitalize on seasonal trends in their market. Lease terms are staggered based on historical occupancy trends to allow for aggressive renewal efforts and optimum rental rates. In general, our program requires that lease expirations do not exceed 10% of the total property units during the strong traffi c months and 5% during the slow traffi c months. Our comprehensive reporting and forecasting tools communicate this information to the onsite leasing team daily so that leases and renewals are written to support our lease expiration requirements.


Brent Ball

Eastern Division

Terry PhillipsWestern Division

Kim Bender



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Fairfi eld places a high value on resident retention, renewals, and controlling unnecessary turnover at our properties. Starting at move-in and throughout residency, we have an ongoing customer feedback system that allows us to address resident concerns quickly with a goal of gaining residents’ satisfaction and earning their loyalty. We believe our residents deserve the highest level of service, and providing it will allow us to achieve optimum rents while reducing turnover. Our service standards include providing well-maintained properties and engaging living environments with exemplary appearance, functional amenities and planned resident events; highly trained onsite associates who are knowledgeable about the property and neighborhood, and who take a responsive, professional approach to resident needs and concerns; and expert maintenance teams with a quick response to service orders and our 24-hour work order guarantee.

Awards and Distinctions Fairfi eld is proud to be active in hundreds of local apartment associations throughout the country and maintains a host of accreditations.

Accredited Management OrganizationInstitute of Real Estate Management

Local, State, and National Apartment Associations

Broker and Real Estate LicensingLicensed in each state as required by law

Housing Credit Certifi ed Professional

The Reserve | Renton, Washington



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State-of-the-Art and Individually Tailored Accounting Services

The Fairfi eld accounting department provides end-to-end property and partnership accounting services. Your property is partnered with a dedicated accounting team consisting of CPAs, accounting managers, and accounts payable coordinators. The team works in unison to offer effi ciency, ensure accurate and timely reporting, and provide complete fi nancial information.

Fairfi eld uses the Yardi Voyager accounting system, which is fully integrated with our Yardi property management system. This integration affords outstanding effi ciency, automated processes, and a full suite of custom reports. We can easily provide uploads to your chart of accounts through mapping, and have the ability and fl exibility to work in a myriad of other accounting systems.

For job cost and FAS for fi xed assets, Fairfi eld uses Timberline. Data from these systems is uploaded to the general ledger system. For funds and large portfolios, Fairfi eld uses the integrated Yardi asset management system, which allows our fund accounting department to consolidate property reporting and provide investor information across a portfolio. The Fairfi eld property management accounting team works hand-in-hand with our cash management department to provide comprehensive banking and processing solutions including opening and monitoring cash accounts; processing wires and ACH payments; processing returned items; researching irregular items; and maintaining internal controls.

Talavera | Denver, Colorado



Marketing and Media Services

ffMKTG, Fairfi eld’s in-house marketing and graphic design department has mastered the art of multifamily marketing by providing creative solutions for today’s competitive marketplace. Our team of innovative, seasoned professionals is experienced in campaign development; traditional, online, and social media strategies; effective media planning and buying; and marketing analysis.

ffMKTG serves as a one-stop shop, with expertise in branding and promoting a wide variety of multifamily product types from high-end lease-ups to stabilized properties, student housing communities, affordable housing properties, and distressed properties. With a focus on delivering pro-active strategies and solutions, we perform ongoing analysis of web/advertising analytics, traffi c numbers, and market trends, and our marketing team partners with regional and on-site management personnel to identify future opportunities within the submarket.

In addition, ffMKTG offers the option of customized promotional website presentations, search engine optimization services, Internet analytic reporting, HTML templates for e-blasts and Craigslist postings, lead tracking, and contact center opportunities.

With a focus on delivering pro-active strategies and solutions, we perform ongoing analysis of web/advertising analytics, traffi c numbers and market trends, and partner with the regional and onsite management team to identify future opportunities within the submarket.

Quarterly marketing plans, virtual “Power Hour” marketing workshops, and an online catalog of promotional ideas and collateral designs are just a few of the ways the department collaborates with on-site and regional management teams to enhance marketing efforts and drive traffi c to the property. Additionally, Fairfi eld’s national buying power maximizes each property’s return on its advertising dollars. Combined with our marketing team’s media planning know-how, these national pricing programs ensure each property’s media mix is comprised of key proven media at the best possible pricing.

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[ sample property brochures ] [ sample national programs ]



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By partnering with ffMKTG, Fairfi eld properties have access to an array of tools and services:

Interactive Design Library: Our online design library offers an array of professionally designed collateral and creative services resulting in a powerfully unique marketing message for each property. The library features agency-quality collateral at a fraction of agency costs. With easy-to-order online services, these cost-effective and professional solutions are only a click away.

Award-winning Graphic Design Services: ffMKTG specializes in custom creative services for original content and design to further differentiate your property. With in-house agency and graphic design talent, we are able to creatively design and quickly implement marketing strategies that create tremendous effi ciency and cost advantages.

ffMKTG’s integrated marketing strategies, coupled with our expert consulting, produce cost-effective solutions that result in qualifi ed leads and accelerated leasing velocities for Fairfi eld managed assets, and ultimately in higher returns for our investors.

Fairfi eld offers a range of turnkey national programs to differentiate our communities from their competition. Each program offers pre-designed collateral materials that allow for easy and effective promotions at minimal cost.

Live Life in Color Accent Wall Program: Fairfi eld’s accent wall program allows residents to select from a palette of professionally selected paint colors to personalize their space.

Living Green®: Living Green is Fairfi eld’s recycling and energy-effi ciency plan for our residents and employees. An early adapter of the Living Green lifestyle and with several LEED® projects in our portfolio, our company is in a unique position to positively infl uence the thousands of residents living at Fairfi eld communities. In addition to resource conservation programs, Fairfi eld provides its residents with opportunities for education, outlets, and resources for green living practices, including saving energy, conserving water, and reducing waste.

Lease with Confi dence: Fairfi eld’s Lease with Confi dence program offers options to qualifi ed residents that eliminate some of the costs associated with terminating a long-term lease.

[ sample special event fl yers ]



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As your property management partner, maintenance is among our most important responsibilities, and your asset is in great hands with us.

Fairfi eld has corporate directors in the fi eld to oversee our superior maintenance programs. Our divisional maintenance directors and their teams advise and coordinate capital projects, and also pool their extensive knowledge to improve asset preservation, expense management, vendor selection, and bulk purchasing. The Fairfi eld buying advantage and maintenance cost savings benefi t your bottom line.

Our on-site property service technicians are highly skilled and participate in ongoing enhancement programs to ensure compliance with requirements of environmental authorities, fair housing laws, OSHA, and stringent in-house safety standards. In addition, NSPF® certifi cation and EPA A section 608 Federal Clean Air Act certifi cation testing are included in our on-site implementation.

Our maintenance program also incorporates disciplines and programs related to emergency preparedness, AMG mold prevention, and environmental management. Our online, interactive safety risk manual, and our mold prevention and response plan manual are cutting edge in the industry.

Our in-house environmental specialist ensures compliance with codes, laws, and stringent standards. Our comprehensive program keeps a pulse on all environmental issues and a focus on cost-effective implementation strategies.

Fairfi eld takes great pride in service to our residents with a 24-hour turn on service, outstanding follow-up communications, and exemplary work. Our maintenance program is also instrumental in the Fairfi eld Living Green® initiative by incorporating green products, carpet recycling programs, and reduced waste efforts.

The Fairfi eld maintenance services program ensures your asset is in a pristine physical and fi nancial position.

The Reserve | Renton, Washington



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Audit and Compliance Services

Audit ServicesFairfi eld’s internal audit department audits every property annually for accuracy and legal compliance of all property operations and leasing paperwork. Audits are done on site to ensure that all fi nancial information is correct and complete within the property management software system.

Services offered by the Fairfi eld internal audit group include:

Full Compliance Audits – We audit each property to ensure that all Fairfi eld policies and procedures, as well as state and local laws, are followed.

Rent Roll Audit – Properties are audited physically or “virtually” for rent roll report items including unit numbers, names, rents, concessions, move-in and lease-end dates, and deposits to ensure that all match the lease document and the information in the property management software system.

Due Diligence Audits – We do pre-acquisition audits to check the accuracy and completeness of rent roll information; to verify incomes on affordable housing properties; to validate corporate fi nancial information; and to evaluate maintenance opportunities and property condition

Fraud Detection Audits – If necessary, certifi ed fraud investigator lead audits to determine types of fraud from involuntary mistakes through full prosecution for theft or other fraudulent acts.

Talavera | Denver, Colorado



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Fairfi eld’s compliance team ensures adherence to the requirements of variable types of fi nancing in the affordable housing industry. We are well-versed in the intricacies of complying with many affordable programs including Low Income Housing Tax Credits (LIHTC), tax exempt municipal bond fi nancing, Project Based Section 8, HOME Funds, and Inclusionary Zoning. Fairfi eld has rich experience in managing affordable communities and has built, redeveloped, and managed over 100 properties with an affordable housing component. We offer vast experience in partnering with local municipalities and non-profi t organizations to provide quality affordable housing and benefi cial resident services.

In addition to monitoring and approving resident fi les for eligibility requirements, Fairfi eld is unique in offering an in-house compliance department with a comprehensive suite of services. We are perfectly positioned and experienced to take care of all compliance services for your property.

Our in-house processing center services include:

• move-in, recertifi cation, and HUD fi le approval• fi le storage• report preparation and submission per the Regulatory/LURA requirements• pre-audit fi le review and agency audit escort• investor fi le review submissions • regulatory agreement review• unit set-asides and unit types• due diligence fi le audit• publishing income and rent limits (property and county specifi c) upon release from HUD• preparing and submitting annual owner’s certifi cations and any other required reports




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Information Systems Support

Fairfi eld’s information systems team of skilled IT professionals oversees the many aspects related to integrated technical support and implementation. Information systems support continuously seeks ways to upgrade to the newest and most innovative technologies that align with the business goals of your property. The Fairfi eld network system is state-of-the art, offering real-time information and the ability to expedite reporting. Our technology expertise touches every area and includes several online resident and leasing services. We offer the latest in web-based property management systems to provide clients and fi eld associates with comprehensive, real-time data. We make the fi nancial review processes easy so you can take advantage of our ability to offer customized dashboards and SharePoint sites. This easy access to monthly operating reports keeps you in touch in an instant and on demand.

Our investment in technology not only makes every Fairfi eld associate more effi cient, it offers you peace of mind knowing that industry-leading tools and technologies are supporting your asset.

Beaumont Apartments | Seattle, WA



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Employee Development and Enrichment Opportunities

Fairfi eld offers a coordinated and comprehensive training approach that supports ongoing learning and development for our associates, positioning each person to reach his or her highest potential. We believe that effective training starts with an understanding of the owner’s goals, which enables our training professionals to develop a customized, strategic plan to optimize associate and asset performance. We offer employee development and enrichment opportunities that make our property personnel happy, friendly, and eager-to-please

Our training and development team takes a results-oriented approach, knowing that strategic measurement and evaluation techniques increase the value, quality, and effect of our efforts. A robust curriculum of courses reaches more than 1,500 property management associates annually, averaging 40 learning event hours per associate.

We provide classes in different environments to maximize training effi ciencies. These environments include: • classroom training • property level coaching (team and one-on-one sessions held at the property with a regional trainer)• webinars and online courses• peer-to-peer mentoring program

The Network of Employee Talent (NET) is a national group of on-site associates serving as property management mentors. It’s a network of quality and professional individuals hand-selected as subject matter experts and top performers within the organization. They deliver a variety of quality training experiences to new, promoted, and tenured associates. The “NET” symbolizes the supportive and collaborative relationship between the fi eld mentor, Fairfi eld on-site team members, and management. The program spotlights opportunities to share knowledge, skills, and core competencies in a productive and positive learning environment. Mentors play a pivotal role in inspiring other associates to achieve individual and business objectives. It drives recognition and retention of outstanding achievers, which results in a more knowledgeable and confi dent on-site management team.

Highly detailed operations manuals that include policies and procedures for leasing, marketing, operations, maintenance, safety and risk management, affordable compliance, and environmental issue responses are readily accessible electronically to guide actions and behaviors in the workplace.




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Human Resource Expertise

Fairfi eld’s recruiters seek out the most qualifi ed property management candidates via industry networking, referrals, and job boards. Applicants are carefully screened by our recruiters to ensure candidates match Fairfi eld’s company culture and meet our high employment standards. The last step before hiring a new employee includes a thorough background check and drug screening.

Fairfi eld manages each property’s payroll services for you. Our comprehensive payroll services include payroll reports, bimonthly payroll runs, and management of all deductions and associated payroll laws. For both cost savings and in support of Fairfi eld’s Living Green® program, our payroll process has gone paperless. Employees update their timecards electronically each day, giving the managers, regional supervisors, and corporate staff access to real-time payroll information for better budgeting and staff planning. Paper checks and pay stubs are no longer issued; most employees take advantage of our direct deposit program, while the remaining employees receive debit cards loaded with the compensation due from the respective pay period. To replace the paper checks and pay stubs, employees have electronic access to a self-serve employee portal, where they are able to easily access current and past pay stubs, submit tax information changes and review benefi t information at their convenience.




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Market Research

Fairfi eld is proud to offer one of the most active in-house research groups in the apartment industry. Our research team aggressively researches and analyzes a host of major variables covering the industry’s key market indicators including population, household trends, employment, multifamily permits and inventory, median household income, migration, rent, absorption, and occupancy rates. In addition, we keep ongoing research and analysis on single-family home sales and prices, homeownership rates, treasury, and mortgage rates. Our research team is available to support your investment strategies by providing other studies that assist in property management decisions including:

• market snapshot (one-page report)• positive leverage analysis (interest rate management)• Fairfi eld high-rise developments (historic overview of new

product)• residents’ place of employment maps (Fairfi eld’s gauge of

local demand based on jobs)• resident profi les (Fairfi eld residents’ characteristics)• demographic thematic maps to identify niche trends• construction price infl ation trends• monthly employment trends by metro area• single-family monthly housing trends by metro area (including

foreclosure data)

West Village | Mansfi eld, MA



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Client Insurance Program

Fairfi eld provides our customers the opportunity to participate in our master property and casualty insurance program. This program provides for extremely broad coverage and diversity of insurance carriers not normally found. By choosing to have your insurance placed under the Fairfi eld program, you can be assured that you are leveraging one of the fi nest insurance programs in the country -- one that is consistently considered best in class among its peers based on a number of metrics including cost of risk, coverage placements, and premiums charged.

Fairfi eld believes in diversifying carriers to reduce the overall concentration of risk among carriers, while simultaneously increasing competition to drive down premium pricing with more favorable policy language. To that end, Fairfi eld uses Lloyds of London syndicates and Bermuda based carriers, along with some of the largest and most established insurance providers in the country. Having this type of pricing power and coverage is usually reserved only for the largest of real estate players.

By choosing to place your insurance needs through Fairfi eld, you have the opportunity to join one of the best programs in the country -- one that is typically not afforded to smaller real estate owners. Due to Fairfi eld’s size and deep rooted relationships with underwriters, brokers, wholesalers, and adjusters forged over a 15 year period, you can be assured that many of your claims will covered, and be handled by dedicated adjusters who fi ght to resolve each claim quickly, while keeping costs down so as to not affect the future loss runs of the portfolio. From Fairfi eld’s special manuscript endorsements, policy language, and numerous bells and whistles not normally found on smaller placements, to dedicated claims handling professionals, you can be assured your insurance and risk management needs will be seamlessly integrated into your property management relationship so you can have the peace of mind that the very best are handling your property management, asset management, and risk management needs end to end.

The result – a value added relationship with reduced overhead.

15777 Quorum | Addison, Texas



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The Barrington | Silver Spring, MA | Tax Credit



Asset Management

Fairfi eld’s asset management group includes well tenured real estate professionals with a vast range of expertise in new, redeveloped, and existing multifamily housing product, including garden-style, mid-rise, and high rise apartments of all asset classes. Our professionals are also experienced with specialized housing categories, such as tax credit, student housing, mixed-use, and retail. Importantly, they have the experience to provide each owner the service that is necessary to ensure that the asset is operating in the most effi cient manner, yielding the highest possible returns, and performing consistent with the defi ned goals.

Fairfi eld provides asset management services to a portfolio of properties in 40 distinct markets throughout the United States. Our large and geographically diverse portfolio exposes our asset managers to all types of market and asset related situations, conditions, and challenges.

Our asset management team is engaged early in the process, which ensures that an asset management perspective is introduced in the property’s initial evaluation. While there are similarities that exist between assets, our asset management professionals recognize that each property owner has a unique set of goals for each asset. They provide asset management services including developing, carrying out, and monitoring the property’s strategic business plans from project inception through its disposition. Typically, the goal of each asset manager is to operate the asset to maximize value and investor returns.

Our asset manager are skilled at:

• reviewing proforma assumptions• offering perspectives on market data• giving feedback on income assumptions, operational costs, and unit pricing• projecting leasing velocity• helping develop a rehabilitation strategy• providing opinions about capital infrastructure• advising on capital projects or asset repositioning

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Emerald Terrace | Los Angeles, CA



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Fairfi eld’s asset management professionals are involved in the acquisition of properties from before purchase through sale. They are able to provide a broad range of asset management services in a manner that contributes to the success of each individual asset.

Fairfi eld’s asset management group provides:• a strategic outline for each individual asset and, if applicable, a portfolio• micro and macro market analysis focusing on occupancy, pricing, product quality and supply to ensure

project maintains leading market results• income and expense projections based on current and potential market and operational changes• property tax monitoring, including re-valuations based on market and asset performance, which includes

coordination of negotiations with property tax consultants• continual reviews of rent rolls with a focus on future leasing rates and occupancies• business plans, budgets, fi nancial projections, and comparative analysis to monitor and evaluate asset

performance• cash fl ow distribution projections to owners or partners• information on operating, market, and capital market conditions, and information on all relevant infl uences

to keep informed of project performance and be prepared to recommend strategic shifts and adjustments• assistance in the evaluating property tax assessments, billings, and protest matters

Our asset managers review:• monthly operating statements for accuracy and trends, focusing on achieving budgeted goals and issues

specifi c to the asset• cash balance projections, which includes income and expense projections based on current and potential

market and operational changes• capital work requirements, subsequent bids, and approve capital improvements as required

Milano Apartments | Torrance, CA Before | After



• assets for potential disposition, which includes developing fi nancial projections based on anticipated sales prices, investment results, and cap rate sensitivity reports

• risk management issues following an event to ensure loss is minimized

Asset managers are responsible for implementing the business directives to achieve the goals for each asset, and they review and pursue ancillary income initiatives to maximize profi tability.

Each Fairfi eld asset manager is experienced in both development and new construction projects, as well as acquisition and redevelopment properties. In addition to the services listed above, asset managers are specially trained in one or more of the following property types:

• conventional housing • core and rehab• tax credit (LIHTC) / affordable housing • mixed-use• student housing

Our corporate experience with all asset types and classes is unparalleled in the industry and is a valuable resource to asset owners. Further, the company provides resources to our asset managers to give them the information and authorization to properly position each asset and measure asset performance against competing assets, as well as the overall market. These resources include a research team that tracks local sales by region and property class, and a nationwide network of brokers. This support ensures accurate industry data and gives us the information necessary to monitor value fl uctuations, both geographically and within property classes, and to report these fl uctuations to asset owners. These variables, including the experience and tenure of our professional team, our nationwide platform, the extent of services and information provided, our approach to communication, and the resources available to our asset managers and associated professionals differentiates Fairfi eld asset management from others in the industry, and ensures that our service supports the interests and goals of each asset owner from acquisition through disposition.

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Sagewood at Stonebridge Estates | San Diego, CA | Tax Credit



Millington at Merrill Creek | Everett, WA | Sold - June 2007

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Property Sales Transactions

Fairfi eld has an in-house sales team and augments its internal staff with brokerage fi rms to market assets. The sales team maintains a database of over 3,000 multifamily brokers and property owners nationwide. In addition to traditional sales methods, we employ state-of-the-art marketing tools such as electronic mailings, Internet listings, and many other web-marketing tools. We maintain a property sales website (www.Fairfi eld-sales.com) that includes detailed property summaries, area maps, photographs, and fl oor plans.

Asset dispositions represent the culmination of Fairfi eld’s investment process and serves as confi rmation of our investment strategy, and Fairfi eld’s interest is aligned with our investors’ interests is to achieve the highest possible sales price.

Relying on collaborative transparency, Fairfi eld transmits user friendly underwriting information via digital fi le sharing, password protected websites and CDs. Buyers need to know they can rely on the quality of underwriting materials along with the professionalism and integrity of the seller.

The information obtained from property sales is valuable in evaluating sales prices of other assets around the country, and especially valuable in determining trends that may affect exit strategies for other investments. The sales team evaluates information from Fairfi eld’s research department, from property management data and asset management reports, and from fi nancial sources to determine the market value of an asset. This evaluation is reconciled with investor objectives.

We monitor monthly property performance on an asset-by-asset basis to identify appropriate disposition timing, and we work closely with our partners to identify the best disposition vehicle for the sale.

As one of the most active and reputable sellers in the multifamily industry, Fairfi eld has established relationships with a large, diverse pool of institutional and private buyers and works closely with the top multifamily brokers in each market. Fairfi eld has consummated sales with pension fund advisors, large insurance companies, plan sponsors, public and private REITs, foreign institutions and diverse private entities.

Since inception, including assets in which we had an ownership interest and those in which we did not, Fairfi eld has sold over 360 properties totaling more than 102,000 attached homes for a sales value in excess of $11.7 billion.

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Sanctuary | Renton, WA | Mixed-Use



Fairfi eld Contacts

Third Party Services• Property Management• Construction• Redevelopment• Asset Management • Design • Marketing• Compliance

Daniel [email protected]

DevelopmentWest Coast

Brendan [email protected]

Central Scott Jackson

[email protected]

Southeast Tommy Brunson

[email protected]

Mid Atlantic Jay Johnson

[email protected]

Northeast Andy Montelli

[email protected]

Student Housing Zachary Johnston

[email protected]

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