Southeast Value-Add Portfolio

Capstone is pleased to present the Southeast Value-Add Portfolio, totaling 484 units. The portfolio is strategically located across North Carolina, South Carolina, and Virginia. The portfolio consists of 15 total properties with an average occupancy rate of 86%. The Southeast Value-Add Portfolio operates in conformance as a Low-Income Housing Tax Credit project, with the option to pursue Qualified Contracts on 14 of the properties, which would remove all affordability restrictions allowing new ownership to convert from affordable to market rate over the next few years. The Portfolio boasts an exceptional opportunity to acquire all 484 units at an incredibly low basis while assuming attractive in-place financing on each property. The diversified portfolio is ideally located across an excellent Southeast geographic spanning 7 markets in North Carolina, 5 markets in South Carolina, and 2 in Virginia. The Southeast Value-Add Portfolio presents the opportunity to acquire 15 communities with scaled entry and tremendous upside in converting to market rate and raising rents across the portfolio.

­­­Investment Highlights:

Incredibly Low Basis Acquisition

Opportunity to Pursue Qualified Contracts on Over 90% of the Portfolio

Opportunity to Own and Operate as a Traditional Affordable Portfolio

Diversified Portfolio Located Across Excellent Southeast Geographic

In-Place Loan Assumptions at ~65% LTV