Stonegate Apartments Stone Gate Boulevard Elkton, Maryland 260-Unit Value-Add Apartment Community

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1 Stonegate Apartments 4301 Stone Gate Boulevard Elkton, Maryland 260-Unit Value-Add Apartment Community

2 The Opportunity Jones Lang LaSalle s Mid-Atlantic Multifamily Group, as exclusive agent, is pleased to present Stonegate Apartments, a 260-unit, Class A garden-style apartment community located within the I-95 corridor in Elkton, Maryland. The Property s highly desirable location, less than one mile from I-95 and three miles from the University of Delaware, offers excellent connectivity to nearby employers and regional employment centers throughout the Maryland and Delaware metro areas. Constructed in 1992, Stonegate has been impeccably well-maintained and managed. Current ownership has implemented an upgrade program generating rental premiums ranging from $75-$90. The success of the initial upgrades provides the opportunity for a new investor to further drive NOI growth through a continued and enhanced renovation program. Due to its proximity to the University of Delaware s Science, Technology and Advanced Research (STAR) Campus redevelopment, the Property will benefit greatly from the completion of the campus as it becomes a major employment center for well-paid engineers and professionals. The STAR campus, which was recently acquired by the University, has already created 500 jobs. Stonegate s ideal location, unrivaled amenity package and additional value-add potential present investors the rare opportunity to acquire a best-in-class apartment community with proven growth potential and strong demand from both academic and private sector employment drivers. Property Summary Property Address 4301 Stone Gate Boulevard Elkton, Maryland Clubhouse Number of Units 260 Number of Stories 2 Number of Buildings 26 Year Built 1992 Year Renovated Building Type Net Rentable Area Average Unit Size Parking Land Area Density Garden-style 282,072 SF 1,085 SF 536 Spaces 2.1 Spaces per Unit Acres Units Per Acre Unit Interior Tax Parcel ID

3 Clubhouse Unit Mix and Rent Matrix Unit Type # Units % Unit Mix Size (SF) Avg. Market Rent Avg. Rent/ SF 1BR/1BA 26 10% 748 $1,068 $1.43 1BR/1BA/Den 26 10% 880 $1,137 $1.29 2BR/2BA 51 20% 1,001 $1,196 $1.19 2BR/2BA 9 3% 1,040 $1,209 $1.16 2BR/2BA 54 21% 1,019 $1,215 $1.15 2BR/2BA 10 4% 1,058 $1,217 $1.19 3BR/2BA 40 15% 1,344 $1,431 $1.06 3BR/2BA 44 17% 1,362 $1,443 $1.06 Amenities Clubhouse 9ft Ceilings Swimming Pool Renovated Kitchens and Baths* Fitness Center Gas Ranges Business Center Cable Ready Tennis Court Carpeted Floors Sauna Gas Fireplaces* Community Lake Den/Study* Gated Dog Park Private Balconies/Patios Covered Parking Direct Access to Units Community Garden *Select homes Beautiful Landscaping Easy Access to Major Freeways Total % 1,085 $1,261 $1.16 Renovated Kitchen Swimming Pool 3

4 Investment and Location Highlights Remaining Value-Add Potential: Current ownership has renovated approximately 75% of the units at the Property and is receiving significant rental premiums. Investors have the opportunity to generate additional revenue through a continued interior modernization program. Existing unit renovations started in July 2011 and consist of upgraded white appliances and Formica countertops, new lighting fixtures, oak cabinet fronts and vinyl wood flooring in the kitchens and baths. Best in Class Asset: As one of the premier Class A communities in the Elkton/Newark submarket, Stonegate enjoys a competitive advantage over nearby apartment communities through its outstanding curb appeal, excellent visibility, unrivaled amenities and its central location in the Mid-Atlantic on the border of Delaware and Maryland. Unrivaled Amenity Package: Stonegate offers an exceptional amenity package that sets it apart from other communities in the submarket. Community amenities include a spectacular clubhouse featuring a resident lounge and kitchen, business center, fitness center, sauna and adjacent resort-style swimming pool and sundeck. The Property also features a tennis court, community garden and a private gated dog park. Limited Class A Competition with No Projected STAR Campus Supply: There are currently no market rate multifamily communities planned to deliver in the Elkton, MD submarket during the next 3-5 years. Additionally, only one market rate community exceeding 100 units has been built since 2000 within a 5-mile radius of the Property. Excellent Location Straddling Delaware- Maryland Border: Stonegate s location on the Maryland side of the Delaware-Maryland border allows the Property to generate substantially more NOI per unit than comparable properties in Delaware through the ability to capitalize on fee income that would not be permitted in Delaware University of Delaware due to state law. Additionally, the Property s location attracts graduate students and professionals from the University of Delaware as well as residents commuting to points in northeast Maryland. STAR Campus Redevelopment: Located five minutes from Stonegate, the recently commenced redevelopment of the 272-acre Star Campus (Science, Technology and Advanced Research) will result in a new mass of engineering and professional employment opportunities that will increase demand for luxury apartments in the immediate area. Proximity to University of Delaware: Located less than three miles from the Property, the University of Delaware is Newark s main economic driver, employing approximately 4,000 personnel and boasting a student body of nearly 22,000 undergraduate and graduate students. Aberdeen Proving Ground: Aberdeen Proving Ground is a United States Army facility located 30 minutes from the Property in Aberdeen, Maryland. As a result of the Base Realignment and Closure Act passed by Congress in 2005, the facility gained 5,371 jobs from Fort Monmouth, New Jersey making it one of the largest regional employment centers. Exceptional Accessibility Along the I-95 Corridor: Stonegate is centrally positioned along the I-95 corridor, providing easy access to I-295, I-495, and Delaware Routes 1, 273 and 72. Philadelphia and Baltimore are within a one-hour drive of the Property while New York and Washington, D.C. can be reached by car in approximately two hours. Drive-By Traffic Propelled by Unmatched Frontage along Elkton Road: As the first visible community when entering the Newark, DE submarket from I-95, Stonegate Apartments benefits tremendously from nearly a quarter-mile of unobstructed street frontage along Elkton Road, the submarket s major thoroughfare, and is passed by approximately 22,000 vehicles every day. 4

5 Philadelphia Stonegate Apartments Maryland Wilmington Newark Delaware Elkton Aberdeen Baltimore Stonegate Apartments 4301 Stone Gate Boulevard Elkton, Maryland 260-Unit Garden Style Apartment Community Christine Espenshade Executive Erin Miller Scott Melnick Managing Director Al Cissel Managing Director For Financing: Robert Garrish Luca Barber Associate Shawn McDonald Executive Anthony Hebenstreit Although information has been obtained from sources deemed reliable, Owner, Jones Lang LaSalle, and/or their representatives, brokers or agents make no guarantees as to the accuracy of the information contained herein, and offer the Property without express or implied warranties of any kind. The Property may be withdrawn without notice. If the recipient of this information has signed a confidentiality agreement regarding this matter, this information is subject to the terms of that agreement Jones Lang LaSalle. All rights reserved.