MULTIFAMILY MANAGEMENT SERVICES

MULTIFAMILY MANAGEMENT SERVICES

A LETTER FROM THE PRESIDENT On behalf of Grubb Properties, I would like to thank you for your careful consideration of our multifamily management services. For 50 years now, Grubb Properties has been both a pioneer and a leader in real estate management throughout the southeast. The team we present to you is consistently focused on identifying strategies to create value for our clients. Our dedicated teams are organized and compensated to drive performance at the prop erty level, while we employ best management practices across the entire operations platform, and meet regularly to review performance and make recommendations to ownership. We are not just another third party manager because we also think like an owner. In fact, we have an ownership stake in the majority of the apartment communities in our management portfolio, making us highly motivated to achieve the best possible overall performance for every property. To help achieve this, our property management teams are supported by a full suite of in-house capabilities including information technology, human resources, marketing, project management, construction and investment services that can provide additional value when the assignment calls for it. We look forward to a future of partnership with you in the success of your community. Kind Regards, SCOTT BROWN, PRESIDENT

Featured Community - Quarterside Apartments, Charlotte, NC COMPANY HIGHLIGHTS, PROFILE, & EXPERIENCE Multi-Generational Real Estate Firm 50 Year Company History (since 1963) 100% Employee and Board Owned Vertically Integrated Real Estate Operating Company, with expertise in Acquisitions & Dispositions, Property Management, Asset Management, Investment, Leasing, Development, and Construction Southeast Operating Footprint (North Carolina, South Carolina, Georgia, Tennessee, Florida, Virginia, Mississippi) Combined 185+ years of industry experience Over 70% of Senior Team has been working together for over a decade Professional management experience of over 8,500 residential units 01

Featured Community - Sterling Forest, Raleigh, NC PERFORMANCE & QUALITY STANDARDS Consistently ranked as a top tier property manager by Invesco Realty Advisors for overall resident satisfaction as reported by Kingsley Associates Winner of numerous community, regional, and national awards 25+ year track record of positive returns for value-add apartment acquisition transactions Successfully grew the company s apartment management portfolio by 44% in 2012 Average occupancy for all stabilized apartments in 2012 was 94.5% Focus on revenue maximization through Yardi daily pricing product with properties experiencing as much as a 13.9% rent growth quarter over quarter 02 Reduced delinquency 69.3% in the first 12 months on an acquired property

PROPERTIES UNDER MANAGEMENT NORTH CAROLINA Charlotte Park South Sterling Magnolia Sterling Steele Creek Quarterside Apartments Raleigh Sterling Forest Sterling TownCenter Chapel Hill /Carrboro Glen Lennox Fayetteville The Enclave Winston -Salem Link Apartments Brookstown Greensboro The Village Lofts SOUTH CAROLINA Greenville Sterling Pelham Sterling Westchester Beacon Ridge GEORGIA Atlanta Sterling Collier Hills Sterling Oaks VIRGINIA Richmond Link Apartments Manchester 03

STRONG INSTITUTIONAL RELATIONSHIPS Fannie Mae Freddie Mac US Housing & Urban Development (HUD) The Praedium Group Federal Capital Partners Rubenstein Partners Invesco Realty Advisors Nationwide Insurance Company Novant Health, Inc. Barclays Capital Euro American Advisors Transwestern Investment Company Assurant, Inc. Fairway Investments Ltd. CBRE Capital Medical Mutual Insurance Company Investors Title Insurance Company Berkadia TIAA-CREF Principal Life Pacific Coast Capital Partners 04 Featured Community - Quarterside Apartments, Charlotte, NC

PERSONAL COMMITMENT / THE GRUBB DIFFERENCE On-site staff bonus programs custom designed to align with property goals In-house Information Technology department In-house Human Resources department In-house Accounting & Finance department Corporate Safety Committee focused on reducing property liability In-house Construction & Project Management services Quarterly review of all assets under management by internal Investment Committee, including the President and CEO, to evaluate performance and make recommendations to ownership Real time market knowledge and active experience in the acquisitions and dispositions markets across the southeast 05

PROFESSIONAL MANAGEMENT SERVICES Grubb Properties employs industry award-winning Yardi Property Management Software and accounting solutions to ensure the most profitable pricing, streamlined operations, and comprehensive reporting for our clients and team. VOYAGER cloud based core property management and accounting platform RENT MAXIMIZER Daily pricing solution for multifamily residential RENT CAFE website, resident, and prospect portals RESIDENT SCREENING credit and background checks PAYMENT PROCESSING workflow automation of invoice for more efficient payment Market Analysis Property Marketing & Community Outreach Preferred Employer Housing Programs Property Maintenance & Groundskeeping Featured Community - Link Apartments Manchester, Richmond, VA Leasing & Traffic Reporting Resident Screening/Background Checks Risk Management Financial Administration & Reporting Asset Repositioning Energy & Utility Management Capital Improvement Programs & Project Management Investment Advisory Services for Acquisition/Disposition Lease Administration Resident Surveys & Blind Shops Fair Housing Training Due Diligence Budget Planning & Cost Control Insurance & Real Estate Tax Monitoring Recruitment & Screening 06 Information Technology Services Contract Negotiation

Featured Community - Sterling Town Center Apartments, Raleigh, NC GREEN INITIATIVES Grubb Properties commitment to energy efficiency runs deep throughout every aspect of the company s business, from energy audits of properties, to daily office practices in the corporate headquarters. Sustainability is one of the key attributes of every employees annual performance review, and senior property managers bonus compensation is tied directly to utility performance. Additionally, the company has regularly hosted Climate Corps internships, in conjunction with the Environmental Defense Fund, focusing on the identification of energy saving opportunities. Grubb Properties has been a leader in energy savings since 1994 when it had its first energy audit and invested less than $100,000 in a property to then reap over $40,000 in annual savings. Now, every single property in our portfolio has its utility performance measured quarterly to identify best practices as well as improvements needed. The company s CEO has served on the Board of the Environmental Defense Fund for six years, and continues to be active in environmental policy and stewardships. In addition to implementing recycling programs and energy saving measures in all communities, Grubb Properties recently completed construction on the first certified green* apartment community in Richmond, VA. *Certified to be in compliance with the National Green Building Standard 07

CORPORATE OFFICES CHARLOTTE 4500 Cameron Valley Parkway Suite 350 Charlotte, NC 28211 P: 704.372.5616 CARY 117 Edinburgh South Drive Suite 112 Cary, NC 27511 P: 919.461.3950 LEXINGTON 15 East Center Street Lexington, NC 27292 P: 336.249.2194 E: info@grubbproperties.com W: http://www.grubbproperties.com