INVESTMENT OFFERING - Southern Oaks Apartments STONE MOUNTAIN, GA

BUSINESS PLAN OVERVIEW

• Our plan with this asset is to provide basic upgrades to both the interiors and exteriors, while improving curb appeal and laying the foundation for an improved resident base.
• Traditionally we spread our interior renovations over a 3 year period and this asset is no different. Maintaining a high level of occupancy and improving operational efficiencies are the first orders of business.
• We start our interior upgrades with any current vacant units. As those units are updated, we then offer them to any current tenants that we are looking to keep, but at current market rental rates.

PROPERTY MANAGEMENT

SOUTH EAST ASSET MANAGEMENT SERVICES (SEAMS)

We think like investors and align our services with your best interests as a real estate investor and owner. We understand an owner’s concerns about residents, property damage, and legal compliance. We know that vacancies negatively impact the bottom line.

At our core, we work to maximize property NOI by efficiently managing rent income and operational costs while offering quality resident experiences in each of our communities.

We are a process-oriented organization. We work with proven processes and innovative technology to transform underperforming multifamily properties into successful real estate investments.

Property Management's overview of asset upon completion of Due Diligence:

"After inspecting all units at Southern Oaks, it is very clear from feedback that many residents value the property as a coveted community. This is to be expected due to several factors such as spacious floor plans, amazing location, and just simply the overall feeling of "home" that is received by physically being at the property. The units are in great shape and provide a huge opportunity to add value via light renovation efforts. Light exterior touches such as painting with different modern colors, along with seal coating / striping the parking lot will make the property look decades newer. The current low rental rates on existing leases are justified due to current deferred maintenance and "age appearance".

"By simply providing great responsive property management along with light renovation efforts, I have no doubt we will be able to reach future year(s) income goals within the first year of management. While I like every property management project in its own unique way, I am very excited to have the opportunity to manage Southern Oaks because of its tremendous upside potential."

-Aaron Rubio | Director of Operations | SEAMS

CAPITAL IMPROVEMENTS BUDGET

$2,000,000

• INTERIOR $1,400,000
• Replace flooring with LVP and Carpet
• Faux granite countertops throughout kitchen and bathrooms
• Stainless steel appliance upgrade package
• New backsplashes in kitchens
• New modern paint schemes
• Upgraded lighting packages
• Ceiling fans
• 2" Faux wood blinds
• LVP Flooring
• Painting
• Renovated Kitchens - Shaker Cabinets, New Hardware New Appliance, Updated LED Lighting, New Sinks
• Renovated Bathrooms - New Vanities, Reseal Tubs
• EXTERIOR $600,000
• Modernizing brick exteriors with new modern paint scheme and colors
• Replace siding with modern high-grade vinyl
• New vinyl shutters
• 80% of the roofs have been replaced in the past 5 years but we will replace the remaining 6 roofs
• Repair and repaint metal exterior stairs
• Landscaping Overhaul
• New Signage throughout property as well building ID

We've partnered with a local contractor on our existing Atlanta portfolio who we've been immensely impressed with that we will continue to utilize here at Southern Oaks

INVESTMENT WEBINAR

WHY WE LIKE THIS INVESTMENT:

• Southern Oaks resides in the Stone Mountain submarket, within the booming Atlanta MSA
• Located just 15 minutes from downtown Atlanta, this 165 unit asset has an equal mix of 1 and 2 bedroom apartments, boasting generous square footage and fantastic layouts
• Currently, rents trail competitive properties by ~$500, and new leases are ALREADY being signed at our 3 year rent goal numbers
• Directly across the street is Willow Lake Apartments, built in 1971 (the same year as Southern Oaks) and sold in March of 2022 for $155k/door. We have Southern Oaks under contract at $114K/door
• The Stone Mountain submarket has an average occupancy exceeding 96% and saw YOY rent growth of 18%
• The demand for apartments at Southern Oaks is extremely high, being constrained only by the current ownerships inability to turn units due to lack of capital

UNDERWRITIING

PROJECTED RETURNS

A $100,000 Investment is projected to return $153,021 in 3 years

• Average Annual Return (AAR): 17.7%
• Internal Rate of Return (IRR): 15.6%
• Equity Multiple: 1.53x
• Quarterly Distributions are projected to begin 6 - 12 months after closing depending on CapEx progress and cash flow

Projected Year 1 Cost Segregation Savings: $25,000 on a $100,000 Investment

INVESTMENT STRUCTURE

Ownership Split:

• 80% INVESTORS - Class "A" Limited Partners
• 20% MANAGING MEMBERS - Class "B" Four Oaks Capital
• GP Team plans to invest $1,500,000 in this opportunity

Class "A" Limited Partners projected returns:

• Average Annual Return (AAR): 17.7%
• Internal Rate of Return (IRR): 15.6%
• Equity Multiple: 1.53x
• Projected Hold: 3 Years
• Minimum Investment: $50,000

Investment Timeline:

• September 16th - PPM (Private Placement Memorandum) and Operating Agreement sent out via Investor Portal for E-Signature along with Wire Instructions
• October 26th - Projected closing

The video below walks you through your INVESTOR PORTAL investment process

This is an investment summary provided to prospective investors and others. This document is confidential and may not be reproduced or redistributed. This information is not an offering to sell either a security or a solicitation to sell a security. At the request of a recipient, the Company will provide a private placement memorandum, subscription agreement and the Limited Liability Company Operating Agreement. The Managing Member in no way guarantees the projections contained herein. Forward-looking information contained herein is subject to certain inherent limitations. Real estate values, income, expenses and development costs are all affected by a multitude of forces outside the Managing Member’s control. All investments have inherent risk. Please consult your attorney, CPA and/or professional financial advisor regarding the suitability of an investment by you.

This investment offering is intended for individuals or corporations with a pre-existing relationship with Four Oaks Capital LLC and its entities