The GeorgeAPARTMENT COMPLEX

OFFERING MEMORANDUM

Oklahoma City, OK

Broker of Record: Toby Brown

DISTRESSED OPPORTUNITY

The George

The premier resource for all of your real estate services and information needs in the OKC Metro area.

WHAT MAKES US UNIQUE:Offering a complete range of Real Estate services gives us a wider audience across the Oklahoma City Metro. With our professional team of realtors, we save our clients time and money along with peace of mind in making a smart investment. Multiple services functioning on all cylinders allows for us to be a premier real estate company serving the entire OKC Metro area.

OUR MISSION:

Our mission is to provide quality housing and management services to our clients and community. We strive to offer the best in service for our clientele and are committed to understanding and providing for the needs of every client.

ONE STOPSHOP:

We offer our clients a variety of services in order to best serve them with everything they could possibly need all in one place. Our team of professionals work tirelessly to provide superior customer service in all aspects of the company.

Broker of Record: Toby Brown

Confidentiality and Disclaimer The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from The Brown Group and should not be made available to any other person or entity without the written consent of The Brown Group. 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. The Brown Group 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, The Brown Group has not verified, and will not verify, any of the information contained herein, nor has The Brown Group 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. The Brown Group is a service mark of The Brown Group Real Estate Investment Services, Inc.

Non – Endorsement NoticeThe Brown Group 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 The Brown Group, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of The Brown Group, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

Broker of Record: Toby Brown

Table of Contents

u 6 Summary of Terms u 7 Investment Highlights u 8-11 Property Summaryu 12 Market Comparablesu 13 Market Overview u 14-15 Financial Analysis u 16 Reconstruction Budget

Summary of TermsInterest Offered

Fee simple interest in The George Apartments, a conventional multifamily apartment community that includes 160 units and 122,834 rentable square feet. The property is located at 6600 NW 16thStreet, Oklahoma City, OK 73217.

Terms of Sale

The property is being offered free and clear.

Timing

All offers must indicate the length of the Due Diligence period and the Closing time frame.Deposit

All offers must specify the amount and type of deposit to be made as well as increases upon the removal of any Due Diligence or Financing contingencies.

Investor Identification

The purchasing entity should identify the owners thereof and include a resume outlining their relevant ownership and/or management experience of the comparable properties, as well as a statement of their financials net worth.

HIGHLIGHTSØ Value-Add Opportunity Ø One of the Top Potential Amenity Structures in The MarketØ Desirable Property LayoutØ 15 Minutes from Downtown Oklahoma City.Ø OKC is one of the Top Ten Fastest-Growing Metro Areas in the NationØ High Historic Occupancies for Submarket Ø Favorable 77% Two and Three-Bedroom Unit Mix

SITE DESCRIPTION

UTILITIESØ Water: Owner Paid (Master-Metered)Ø Electric: Tenant Paid (Individually Metered)Ø Trash Removal: Owner Paid

CONSTRUCTIONØ Foundation: Concrete SlabØ Framing: Wood Frame Ø Exterior: Masonry (Brick) Ø Parking Surface : Asphalt Ø Roof: Mansard

MECHANICALØ HVAC: Central Forced HeatØ Wiring: Mostly Aluminum / Some Copper

Ø Number of Units : 160

Ø Number of Buildings: 18 Residential/1 Clubhouse

Ø Number of Stories: 2

Ø Year Built/Renovated: 1974

Ø Rentable Square Feet : 122,834

Ø Lot Size: 9.65 Acres

Ø Density: 16.58 +/- Units Per Acre

Ø Parking: 170 +/- Spaces

Investment Highlights

PROPERTY SUMMARY The George is an apartment community on the West side of Oklahoma City. Comprised of 160 units sitting on a spacious 9.6 acres, the community offers a great mix of well-designed flats and townhomes all with large balconies or patios and walk-in closets. A few years ago, many of the roofs were repaired and the previous owner started rehab on many units, leaving them with brand new sheetrock, base and case, and tubs. The property has a large swimming pool, sun deck and a club house, all of which can be brought back to life. Built in 1974, the property consists of 18 residential buildings and has a large area for amenities such as playgrounds, barbeque grills, picnic tables and gazebos. The property is located close to both the airport and downtown Oklahoma City.

PROPERTY OVERVIEW

NEIGHBORHOODThe asset is located just outside of the neighborhood of Bethany. Bethany supports many retail, service sector and healthcare related jobs. There is a high renter demand in this neighborhood due to its ease of access to many parts of Oklahoma City.

PROPERTY STORYApproximately 10 years ago, the property was thriving with high occupancy and was considered one of the better apartment communities in the area. However, a new owner eventually mismanaged the property and lost it to foreclosure. The last owner whom we purchased the property from, acquired the property through a lender foreclosure in 2014. They started on the rehab of the property and repaired some of the roofs but were not able to continue due to financial constraints and focus elsewhere. They then boarded up the property and decided to sell it. This property has a great amenity setup with potential for many great amenities and services. It has a pool next to a large clubhouse in the middle of the property. It has a sun deck and a large club house which may be remodeled to include a gym, internet cafe, movie room and resident resource center. The previous owner had also started the remodel on many units with new drywall, base and case, and tubs and shower surrounds

PROPERTY STORYThe property has been vacant for several years and is completely boarded up, thus the property will require considerable rehab to bring it back to life. there are many units that have newer sheetrock, base and case, and shower surrounds/tubs. Also, many units have newer pex plumbing and electric that the previous owner started on. Many of the roofs were repaired a few years ago. The exterior of the buildings is in fair shape as approximately 30% of it would need new siding and there are walkways and porches that would need to be replaced/rebuilt. Structurally, the buildings are solid, no signs of cracks or any structural integrity issues.

Market Comparables

Market OverviewOklahoma City

Oklahoma City is the largest city in the state of Oklahoma. The city’s robust economy, diverse industries, low tax rates and a low cost of doing business has contributed to Oklahoma City ranking as one of the top cities for business and helped the city attract many notable companies and headquarters to the region. From 2004 to 2014 The city added 49,358 new jobs, an impressive 8.8% growth rate, making Oklahoma City among the leading metro areas for business expansion, relocation and job growth during this period. The city’s non-farm job count is projected to increase 2.3% in 2015, significantly above projections for other major MSA’s in the US. In 2013 alone, the city created 6,560 jobs through 200 projects and received more than $500 Million in capital investment. Notable companies which expanded their presence locally include GE Global Research Center, Paycom, Terex and AT&T. OKC is tied at #11 for lowest unemployment rate at 3.7% among metro areas with a population above one million in the U.S., according to the Bureau of Labor Statistics. Oklahoma City has received national media recognition in recent years for its population/job growth, economic vitality, big-league-city assets such as the NBA Oklahoma City Thunder. With its low cost of living, thriving diverse economy and current reformation the city has become a top destination for business, residents and investors. The city has reinvigorated its downtown and truly transformed the city, sparking significant private investment and new momentum.

GROWING ENERGY AND ALTERNATIVE-ENERGY INDUSTRY The region is home to two Fortune 500 companies in the energy industry and ranks among the nation’s top 10 in compressed natural gas and wind energy. DIVERSE EMPLOYMENT OPPORTUNITIES Oklahoma City’s economic base is diversifying beyond energy. Medical, government, healthcare and information technology are generating new jobs. POPULATION GROWTH Over the next five years, population and household growth will outpace the national rate, enhancing demand for goods and services such as healthcare and education.

Reconstruction BudgetITEM # of Units Total Cost Cost per unit Cost Per Door

Permits 1 $ 2,750.00 $ 2,750.00 $ 17.19

Demolition 1 $ 20,000.00 $ 20,000.00 $ 125.00

New Staircase, Sofits, Fasica & Balcony Railings 1 $ 108,000.00 $ 108,000.00 $ 675.00

Fence 1 $ 11,000.00 $ 11,000.00 $ 68.75

Interior Doors 320 $ 12,800.00 $ 40.00 $ 40.00

Exterior Doors 160 $ 18,700.00 $ 116.88 $ 116.88

Sliding door 12 $ 2,400.00 $ 200.00 $ 15.00

Exterior Paint 20 $ 35,000.00 $ 1,750.00 $ 218.75

Dry Wall and Taping (47,100sq ft) 20 $ 141,300.00 $ 2,500.00 $ 883.13

Floor Installation (61,900 sq ft) 160 $ 96,740.00 $ 604.63 $ 604.63

Wood Floors (.91sq) 160 $ 31,000.00 $ 193.75 $ 193.75

Carpet (55000sq ft) 160 $ 80,000.00 $ 500.00 $ 500.00

Bathrooms 168 $ 184,800.00 $ 1,100.00 $ 1,100.00

A/C 3000 3 Tons-with ducts 330 $ 495,000.00 $ 1,500.00 $ 3,093.75

Kitchen 160 $ 160,000.00 $ 1,000.00 $ 1,000.00

Appliances 160 $ 112,000.00 $ 700.00 $ 700.00

Water Heater 160 $ 49,000.00 $ 306.25 $ 306.25

Paint Interior 160 $ 100,000.00 $ 625.00 $ 625.00

Windows 160 $ 30,000.00 $ 187.50 $ 187.50

Plumbing 160 $ 560,000.00 $ 3,500.00 $ 3,500.00

Resurface Parking Lot 1 $ 45,000.00 $ 45,000.00 $ 281.25

Dumpster Enclosure 1 $ 2,500.00 $ 2,500.00 $ 15.63

Full Electric Cost 1 $ 501,000.00 $ 501,000.00 $ 3,131.25

Repair/Redo Side Walks (17,630 sq ft) 1 $ 30,000.00 $ 30,000.00 $ 187.50

Upgrade Pool 1 $ 20,000.00 $ 20,000.00 $ 125.00

Roofing 14 $ 180,000.00 $ 12,857.14 $ 1,125.00

Landscaping 1 $ 50,000.00 $ 50,000.00 $ 312.50

Gym 1 $ 15,000.00 $ 15,000.00 $ 93.75

Office Equipment 1 $ 2,000.00 $ 2,000.00 $ 12.50

Labor Costs

Supervisors (1 Year) 2 $ 200,000.00 $ 100,000.00 $ 1,250.00

Labor (15 men, 6 days a week , 12 hour days 15 $ 561,600.00 $ 37,440.00 $ 3,510.00

Totals $ 3,857,590.00 $ 24,109.94

Developer Profit $ 385,759.00 $ 2,410.99

Total Cost $ 4,243,349.00 $ 26,520.93

$ -STABILIZED CAP RATE 8%

Proforma Value $ 8,566,600.00

Less Rehab $ (3,857,590.00)

Less Developer Profit $ (385,759.00)

CURRENT MARKET VALUE $ 4,323,251.00

Cost per unit Cost Per Door