MULTI-FAMILY MANAGEMENT SERVICES P: E:

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1 MULTI-FAMILY MANAGEMENT SERVICES P: E:

2 FULLY INTEGRATED SERVICE LINES

3 NATIONAL COVERAGE FRIEDMAN MARKET COVERAGE: Midwest Northeast South West

4 FRIEDMAN DIFFERENCE OVERVIEW Friedman Integrated Real Estate Solutions manages more than 10,000 apartment homes in more than 50 communities. Friedman has more than 25 years of successful experience increasing cash flow, enhancing property condition and maximizing the long-term value of our clients properties. Additionally, Friedman provides a wonderful place for its residents to call home and offers its employees a rewarding work environment. FULLY INTEGRATED REAL ESTATE SOLUTIONS Friedman Integrated Real Estate Solutions makes up for its lack of size by providing the best full-service multi-family management services to its clients. Friedman provides superior service through exceptional local market knowledge, ownership vision and the most advanced technologies. Most importantly, we employ some of the most talented professionals in the industry. The Friedman team brings the knowledge, experience, creativity and innovation required to effectively create and maximize value for the properties we manage. COLLABORATIVE APPROACH Friedman utilizes a team approach for every assignment. Your property s needs will be serviced by a dedicated team including, not only a capable, trained and motivated on-site staff, but also, the Director of Property Management, a Regional Property Manager, an Accounting Manager, a Staff Accountant, a Client Services Coordinator and a dedicated Trainer. All of these team members have the full support and attention of our corporate support systems including, Information Technology, Marketing, Human Resources, Risk management, Legal and the Executive Leadership team of Friedman Integrated Real Estate Solutions. RESULTS ORIENTED Friedman works closely with our clients to set goals and then commits the necessary resources to provide a superior level of service. Once set, our entire team works at exceeding your expectations. We will provide strong direction, guidance and leadership to the on-site team. We achieve our success with great systems, hard work, a strong sense of urgency, excellent communication, pro-active leadership, and attention to detail. Rental markets continually evolve and Friedman s focus on monitoring the operations and financial results, as well as the competition, helps us deliver the results that have made Friedman Integrated Real Estate Solutions one of the most successful privately held real estate firms in the country. SMALL COMPANY LARGE BENEFITS Friedman multi-family management clients include both private investors and institutional owners, both local and national. We manage properties of all sizes and types, including conventional market rate, affordable, student, senior, LIHTC, and assisted living. We have large company resources and controls and small company expertise and nimbleness. Our size affords us the ability to provide personal attention, effective communication and fast collaboration and decision making. Each of our clients has the ear of anyone in our organization. Friedman takes an innovative approach to each assignment. We take pride in turning challenges into opportunities and creating value for our clients. Each stakeholder plays an important role in the success of an apartment community. As such, we take great pride in treating our on-site team, our residents, our vendors, and our owners with the care, integrity, and respect that they expect and deserve. From transition to disposition, Friedman will nurture it s relationships with all involved to provide bestin-class management services. In summary, Friedman Integrated Real Estate Solutions provides the Systems, Training and Support to ensure the most effective property performance to maximize results.

5 COMPREHENSIVE STRATEGY SYSTEMS Friedman utilizes the most effective and comprehensive systems, at both the property and corporate levels, to provide the most timely and accurate information available. Not only do we stay ahead of the competition in a highly competitive environment, but we also make the best and most timely decisions, as a result. > Budget Compliance > Service Contracts > Rent Collection > Applications > Staffing > Maintenance & Service Requests > Risk Management > Resident Retention > Capital Improvements > Preventative Maintenance > Advertising > Lease Renewals > Utility Usage/ Cost > Inspections > Online Purchase Orders > Lease Management TRAINING Our corporate real estate professionals and corporate trainer work as a team to ensure that the on-site employees receive the proper training and supervision to perform their jobs to a high level of expectation. From corporate culture to property level policies and procedures, our educational opportunities help enhance our most valued assets, a well-trained and motivated onsite team. > Proactive Supervisors > Weekly Site Visits > Video Webinars > Obtain Professional Designations / Accreditations > Staff Meetings > Seminars > Fair Housing (Certified Fair Housing Trainer) > Regulatory Compliance > Security Deposit Law > Leasing/ Closing Techniques SUPPORT Our extensive training and continual supervision allow the on-site employees to effectively handle the day-to-day operations, while having corporate staff members readily accessible for complex situations and additional support. Additionally, Friedman s Shared Services teams provide all of the corporate level support required to achieve the best results for our clients. > Compliance > Accounting/Reports > Risk Management > Legal > Marketing & Leasing > Technology > Human Resources/ Benefits > Executive Team

6 COMMITMENT TO EXCELLENCE MANAGEMENT SERVICES From initial transition to disposition, Friedman provides comprehensive management services on each assignment. At inception of the assignment, Friedman follows an extensive checklist to gather all the information and documents required for a smooth transition. Additionally, we will systematically perform several tasks during the first 30, 60 and 90 days of the assignment including: > Interview, put at ease and transition the existing on-site staff > Set-up the data processing, and accounting and reporting systems > Develop comprehensive budget and operational plan > Develop property level websites, complete with portals, and rent payment modules > Develop marketing program including branding, brochures, and other print and web-based advertising. > Audit the operational processes and file systems to ensure full compliance with our policies and any regulations > Review the integrity of the buildings and grounds through the use of physical inspections > Set-up preventative maintenance schedules and programs > Review the deferred maintenance and capital needs > Perform due-diligence inspections > Develop emergency policies and procedures > Identify and minimize exposure to damage and loss through safety policies, insurance compliance, incident reporting and claims processing > Review all contracts including leases, service contracts, laundry contracts, etc. > Monitor vendor insurance and contract complience Friedman s team will quickly gain control of the property, its physical and financial operations and begin maximizing value almost immediately. We will make recommendations for improvements that we feel will benefit the property. We will work closely with the property owner and/or asset manager to understand their goals and objectives for the property. We will also discuss budget constraints and look for ways to overcome obstacles to achieve maximum success for the property. Marketing plays a significant role in the success or failure of the property in achieving its occupancy and operational performance goals. That said, the most important result of the marketing effort involves not just generating traffic but generating qualified traffic. Once the qualified prospect comes to the property, the marketing effort continues at the property in terms of curb appeal of the property, and further with the quality and training of the on-site staff and the rental policies in place. We will also review the Branding of each community and make suggestions for improving the perception of the property in the marketplace, if required. PHILOSOPHY We approach the marketing of multi-family properties from several different directions but the most important is our philosophy of Clean and Green. Drive-by traffic typically provides the largest source of, not only traffic, but residents at any given community. We preach and practice excellent curbappeal from both a cleanliness and landscaping perspective. We may not be the newest or the biggest but we can always be the cleanest and the greenest. This approach also extends to signage and collateral marketing material such as property signage, bandit signs, balloons, employee appearance, etc. Training our on-site teams to understand their property and the competition helps them overcome objections and sell-up our properties better points. Leasing based on price alone can work but we prefer to lease based on our positives in comparison to our competition thus getting more rental revenue than if we leased based on price alone. We get to know our competition through monthly market surveys and site-visits. We consider ourselves industry leaders when it comes to leasing and management but we need to understand the competition and how they may affect our position in the market. We focus a lot of time on Resident Retention through proactive lease management, activities and communication. History shows that apartment turnover for a particular property typically falls within a relatively small range year over year. However, we work especially hard to provide the service a resident expects and deserves. Not only may it help retain the resident for another year or longer, but they can also become a valuable source of additional residents. We especially enjoy paying residents for Resident Referrals as it not only provides a new resident but also reflects favorably on management since an existing resident recommended one of their friends. We review lease expiration date history and manage lease expiration dates throughout the year to try and ensure that not too many leases come due in less desirable months. We emphasize corporate outreach as a means of generating qualified traffic to a property, as well. Canvassing local businesses for residents also goes a long way to creating camaraderie at the property. We advertise in various media. Depending on the property and what works, we will use a combination of print and internet advertising. We constantly monitor the success of our marketing campaigns by not only measuring traffic but rentals generated and cost per lease, etc.

7 PROVEN TRACK RECORD KNOW-HOW The individuals assigned to the multi-family management team have many years of experience with all classes of market rate, as well as affordable, student, and assisted living communities. We hire the best - provide them with excellent systems, training and support with the goal of meeting or exceeding owner expectations. Friedman provides an unparalleled fully integrated solution for our clients and their properties. We look for ways to create value for the properties we manage utilizing our strengths of; experience, local market knowledge and a strong commitment to being the best. DISTRESSED ASSETS Friedman possesses many years of experience with not only performing but also under-performing and non-performing properties and loans. We have been asked to resolve all types of real estate related problems for institutions throughout the United States. We understand the operational and financial challenges facing distressed real estate. Friedman customizes our distressed asset services based on the specific needs of each assignment. This approach allows our clients to make sound decisions to not only mitigate risk and loss but to improve property performance, as well. Friedman has been recommended as Receiver and Manager by many lenders, special servicers and lawyers throughout the years due to their deep understanding of the special circumstances surrounding the distressed assets market and our ability to achieve the best result for these properties. Friedman provides all its clients with a one-stop-shop menu of services. We offer our clients asset management, property management, receivership services, construction management, and disposition services. This menu of services especially helps our clients involved with distressed assets as it helps them efficiently and effectively manage their portfolio. GROWTH Our multi-family management growth has been accomplished through a commitment to achieving excellent results every time. We intend to continue this growth through establishing and nurturing strategic relationships. We have the infrastructure in place to support this growth in a disciplined manner with a dedicated team of multi-family management professionals in virtually any market throughout the United States.

8 ADVANCED TECHNOLOGY PROPERTY ACCOUNTING Friedman uses Voyager, the state-of-the-art in Real Estate Management Software. Voyager enables us to provide you with a complete set of financial reports (cash or accrual) in a variety of different formats. Depending on your requirements, your monthly reports may include: NARRATIVE REPORT & SUMMARY VARIANCE REPORT CHECK REGISTER RENT ROLL BANK RECONCILIATION INCOME STATEMENT GENERAL LEDGER AGED DELINQUENCY REPORT OPEN INVOICE REPORT BALANCE SHEET OTHER REPORTS OR CUSTOM ITEMS AVAILABLE AS REQUIRED In addition to the financial and accounting information that we provide, Voyager features a unique set of asset management tools that enable us to see, at a glance, how your property is performing. With this system, we are able to precisely monitor leasing activity, expense histories, capital improvements and more. The benefits of this unique system are extraordinary. If you need a report after hours or on a weekend, they are available to you as well. In this fast-paced world, information is the key to smart business decisions. By providing real-time, secure access to your property information, Friedman puts you one step ahead of the competition.

9 We lead the way in utilizing the latest hardware and software to better serve the rapidly changing needs of our clients and tenants. Specifically, we use: LEADING INDUSTRY INNOVATION INNOVATION AND TECHNOLOGY The dynamics of real estate are changing. Technology has redefined the traditional role of service companies in every area. Data has become a commodity, and real estate data is no exception. Anyone with a web browser and an Internet connection can now access comparable sales and leasing information, market statistics, and demographics. The role of the new real estate professional will be to interpret and analyze this wealth of information for their clients. It is with this vision that Friedman operates. We are committed to serving our clients by applying our expertise and knowledge of the markets in which we operate to meet or exceed our clients expectations. Yardi TM Voyager Microsoft Office Suite Nexus Payables ARGUS Pro-Forma Analysis Software Resident Screening & Risk Management Online Listing Engines Company Services and Website Friedman News MailChimp Services Facebook Computer Aided Design & Drafting AutoCAD Custom Property Websites

10 CUSTOM PROPERTY WEBSITES WEBSITE EXAMPLE Friedman s innovative approach ensures that all properties maintain the most advanced technological offerings available. Each property we manage receives a website powered by Resite. We design and customize the website in-house and additionally add your property to our corporate sites and search engines to maximize visibility. Standard features of the property web-site include a personal URL and the following pages; Home, About Us, Property Overview, Neighborhood, Directions, Contact Us, and the following additional features; prospect and resident portals including on-line payment options, resident blogs, printable brochures, news letters, floor plans, and online maintenance requests. The sites also include a mobile version viewable on all cellular devices and ipads, built-in meta data to improve SEO (rankings in google), special texting features, amenities, photographs, unit mix and community information. PROPERTY WEBSITE HOMEPAGE WEBSITE FLOOR PLANS WEBSITE FLOOR PHOTO GALLERY

11 CORPORATE SITE PRESENCE ENHANCED VISIBILITY Our main corporate site for multi-family properties includes a powerful search engine so that potential residents can locate the property best suited for them by region. Properties can additionally be featured on the home page with our special Featured Property function. These are just a few of the many ways we work to maximize your property s visibility to the online community.

12 ONLINE COMMUNITIES OPENING THE LINES OF COMMUNICATION We appreciate our residents and strive for the highest retention rates possible. One key element for our team is communication; always keeping the residents informed of what is going on in their community, the various services and conveniences they can take advantage of and news about the neighborhood. Every one of our properties maintains an active facebook presence in an effort to involve all community members. Another feature we offer to our communities is the Resident Hub portal which allows for online message boards, ride sharing, baby/pet sitting, book swap, online news letters, weekly updates from the site staff, news/ events calendar, maintenance & payment portals, local coupons, and many additional features.

13 ADDITIONAL IN-HOUSE CAPABILITIES CUSTOM SITE PLANS CUSTOM FLOOR PLANS BRANDING & IDENTITY SYSTEMS WEBSITE EXAMPLE T H E SUMMIT A P A R T M E N T S

14 INTERACTIVE ONLINE PORTFOLIO TO VIEW OUR INTERACTIVE PORTFOLIO PLEASE VISIT:

15 CASE STUDY SUMMIT APARTMENTS Challenge: Friedman became the court appointed receiver of Overcoming Challenges: A strict resident renewal program was implemented; The Summit Apartments on July 19, 2010, which transitioned into stipulating the number of late payments allowed, pre-renewal apartment PROPERTY NAME PROPERTY TYPE CITY, STATE SUMMIT APARTMENTS MULTI-FAMILY FARMINGTON HILLS, MICHIGAN a management assignment on March 31, At the time of the receivership order, the physical occupancy was 90.2% and the economic occupancy was 83.3%. inspections were conducted, and a zero tolerance policy for resident disturbances was enforced. In addition, the community underwent a $1.5 million capital renovation program; including window replacements, interior corridor upgrades, exterior painting and siding, carport upgrades, and roof replacements. YEAR BUILT NUMBER OF UNITS ASSIGNMENT TYPE CONVENTIONAL MANAGEMENT Owner Expectations: To increase occupancy, both physical and economic, to convert the 100 plus month-to-month leases to term leases, to improve the resident profile, maximize rental rates and implement an aggressive RUBS program. Result: After 75 weeks the physical occupancy increased to 99.4% and the economic occupancy increased to 98.7%. All concessions have been eliminated, rental rates have been increased by more than 10% and the RUBS program fully implemented.

16 CASE STUDY BRIGHTON COVE APARTMENTS Challenge: Friedman became the exclusive Overcoming Challenges: The community underwent a series of capital improvements management agent for Brighton Cove Apartments geared towards improving the resident profile. These included significant asphalt repairs/ PROPERTY NAME PROPERTY TYPE CITY, STATE BRIGHTON COVE APARTMENTS MULTI-FAMILY BRIGHTON, MICHIGAN on December 29, At the time of transition, the physical occupancy was 95.56% and the economic occupancy was 87.5%. replacement, exterior painting, landscaping, signage replacement, interior corridor renovation, and a rebuild of the community center. Additionally, the management and leasing team worked to improve the resident/prospect screening process and implemented a strict renewal policy. YEAR BUILT NUMBER OF UNITS ASSIGNMENT TYPE CONVENTIONAL MANAGEMENT Owner Expectations: It was the goal of ownership to improve the profile of the community, while keeping physical occupancy steady and improving economic occupancy. Result: After 68 weeks the physical occupancy increased to 97.78% with only 1.14% delinquent. All physical plant/capital improvements were completed out of property cash flow. The average screening score increased by more than 200 points and the average resident income went from $28,000 to $57,000.

17 CLIENT LIST

18 TEAM MEMBERS DAVID FRIEDMAN President & CEO E: P: CHARLES DELANEY CFO & COO E: P: Mr. Friedman started his career as a licensed real estate broker in In 1987, he launched Friedman Integrated Real Estate Solutions as a boutique brokerage firm specializing in the leasing of office and industrial space located throughout Metro Detroit. Today, Friedman employs a staff of over 150 brokers, leasing agents and diversified professionals who maintain property listings and real estate assignments across the country. The company s unparalleled growth reflects Mr. Friedman s dedication to innovation and creativity. Friedman is widely recognized for their expertise in a range of real estate disciplines, including office, retail, land and investment sales, tenant representation, property management, asset management, development and construction. Chuck Delaney is Chief Operating Officer for Friedman Integrated Real Estate Solutions. Mr. Delaney is a 30-year real estate industry veteran and is responsible for overseeing the fiscal operations for each of Friedman s various operating companies. He has a passion for multi-family management and loves how small changes in policies provide immediate results. Mr. Delaney manages the firm s receivership practice and oversees the company s accounting and reporting departments. He is a 1979 graduate of the University of Michigan and is a licensed real estate broker and CPA. TRACY BROWN E: tracy.brown@freg.com Director, Residential Management Services P: Mr. Friedman is a licensed real estate broker in the states of Michigan, Florida and Arizona. He is an active member of the Society of Industrial and Office Realtors and the International Council of Shopping Centers. He publishes a bi-annual report on the state of the Detroit-area real estate market and is a regular speaker on the local talk circuit. Mr. Friedman was a recipient of the 2010 ULI/ Crains Overall Real Estate Excellence Award. Tracy is the Director of Multi-Family Management and has been a valued team member since She has full portfolio management responsibility for all multi-family properties. Tracy has over 20 years of experience in the multi-family management industry. She began her career as a community manager and has considerable experience with conventional market rate, student, LIHTC and Section 8 properties. Tracy is a Certified Property Manager (CPM) through IREM. STANLEY H. FINSILVER Executive Vice President E: stan.finsilver@freg.com P: AMY BLESSARD Regional Manager E: amy.blessard@freg.com P: Stanley Finsilver is Executive Vice President of Friedman Management Services and President of Friedman Design and Construction Company. Mr. Finsilver is a licensed builder and contractor and has over 30 years of experience in the real estate construction business. He is also a recognized leader in the turnaround management industry and is regularly called upon by lenders and servicers to assist in the stabilization of under performing and REO assets. Mr. Finsilver oversees the operation of both Friedman Management Company and Friedman Design and Construction Company. Amy Blessard is the Regional Manager of the Ohio and Kentucky portfolio. She holds numerous industry recognized designations such as Certified Apartment Property Supervisor (CAPS), C6P, NCP, HCCP and AHM. Prior to joining Friedman, Amy Blessard acted as Regional Manager in an industrial and commercial developer based in Ohio. In her capacity, she was responsible for a portfolio of multi-family, commercial and condominium developments. Amy Blessard served as Regional Director from 2002 to 2005, where she was responsible for a portfolio of fifteen Low Income Housing Tax Credit (LIHTC) and HUD communities in Ohio and West Virginia.

19 TEAM MEMBERS CARLA THORNTON Regional Manager E: P: LAURA GILLESPIE Regional Manager E: P: Carla Thornton is the Regional Manager of the Michigan portfolio. Carla brings 20 years of Real Estate sales and management experience to the Friedman team. Her real estate career began in New York City leasing residential and commercial spaces. This eventually led to a Residential Property Management position back in her home state of Michigan. She has worked at residential properties with up to 1,600 apartment homes, and has experience as a Regional Manager for properties in Michigan. Laura Gillespie is the Regional Manager of the Indiana and Michigan portfolio. Laura is a licensed Michigan Real Estate Sales Person and is in the process of obtaining her CPM designation through the Institute of Real Estate Management. Laura began her career in the multifamily real estate business in 1996 and has experience working with student and conventional market rate housing. Prior to joining Friedman, Laura was a Regional Manager overseeing multiple communities around Southeastern Michigan. DEATRA LONGO Regional Manager E: deatra.longo@freg.com P: LORI FLANNERY Regional Manager E: lori.flannery@freg.com P: Deatra Longo is the Regional Manager of the Alabama and Tennessee portfolio. Prior to joining Friedman, Ms. Longo was a Regional Manager in New Jersey. She was responsible for a portfolio of class A communities in Tennessee and Alabama. Prior to that, she served as a Property Manager overseeing properties throughout Tennessee and Alabama. Throughout her career she has held positions in management, marketing and training. Lori Flannery is the Regional Manager of the Indiana and Kentucky portfolios. She has more than 20 years industry experience in Conventional, Senior Living, Student Housing and Affordable multi-family living environments. Prior to joining Friedman, Lori acted as Regional Manager in California for more than six years working with institutional clients and private owners. In her capacity, she was responsible for a portfolio of multi-family, commercial and large scale new construction/lease-up and repositioning assets. Lori is presently working toward the CPM designation through IREM.

20 P E. MULTIFAMILYMANAGEMENT@FREG.COM BROKERAGE. COMMERCIAL MANAGEMENT. MULTI-FAMILY MANAGEMENT. CONSTRUCTION & DESIGN. ADVISORY SERVICES.