The Retreat Value-Add, Multifamily Investment Offering This document contains privileged and confidential information and unauthorized use of this information in any manner is strictly prohibited. If you are not the intended recipient, please notify the sender immediately. This document is for informational purposes and not intended to be a general solicitation or a securities offering of any kind. The information contained herein is from sources believed to be reliable, however no representation by Sponsor(s), either expressed or implied, is made as to the accuracy of any information on this property and all investors should conduct their own research to determine the accuracy of any statements made. An investment in this offering will be a speculative investment and subject to significant risks and therefore investors are encouraged to consult with their personal legal and tax advisors. Neither the Sponsor(s), nor their representatives, officers, employees, affiliates, sub- contractors or vendors provide tax, legal or investment advice. Nothing in this document is intended to be or should be construed as such advice. The SEC has not passed upon the merits of or given its approval to the securities, the terms of the offering, or the accuracy or completeness of any offering materials. However, prior to making any decision to contribute capital, all investors must review and execute the Private Placement Memorandum and related offering documents. The securities are subject to legal restrictions on transfer and investors should not assume they will be able to resell their securities. Potential investors and other readers are also cautioned that these forward-looking statements are predictions only based on current information, assumptions and expectations that are inherently subject to risks and uncertainties that could cause future events or results to differ materially from those set forth or implied by such forward-looking statements. These forward-looking statements can be identified by the use of forward-looking terminology, such as “may,” “will,” “seek,” “should,” “expect,” “anticipate,” “project, “estimate,” “intend,” “continue,” or “believe” or the negatives thereof or other variations thereon or comparable terminology. These forward-looking statements are only made as of the date of this executive summary and Sponsors undertake no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances. This document further contains several future financial projections and forecasts. These estimated projections are based on numerous hypothetical scenarios and Sponsor(s) explicitly makes no representation or warranty of any kind with respect to any financial projection or forecast delivered in connection with the Offering or any of the assumptions underlying them. This document further contains performance data that represents past performances. Past performance does not guarantee future results. Current performance may be lower or higher than the performance data presented. All return examples provided are based on assumptions and expectations in light of currently available information, industry trends and comparisons to competitors financials. Therefore, actual performance may, and most likely will, substantially differ from these projections, and no guarantee is presented or implied as to the accuracy of specific forecasts, projections or predictive statements contained in this document. The Sponsor further makes no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown in the pro-forma or other financial projections. 2 Disclaimer 3 Contents Deal Story 4 Team 8 Executive Summary 17 Pro Forma 20 Property Overview 23 Business Plan 33 Comps 39 Financial Analysis 45 Houston Market 52 Critical Dates / How to Invest 55 Deal Story 5 Deal Story 1 of 62 off-market acquisition targets Using the proprietary Discover Multifamily (DMF) Acquisition Database, 62 (3.5%) of the 1,789 properties in the Houston MSA have been identified as highly desirable acquisition targets. The Retreat, formerly "The Cottages,” is one of the 62. Chased deal for 8 months, seller lowered price by $2.1M The seller originally wanted more than $20.4M for the asset. After ongoing conversations, pricing has adjusted downward three times over the last 8 months, and DMF is acquiring the asset for $18.3M. Massive spread with going in 6.6% cap rate Houston is trading between 4.8%-5.3% cap rates making our 6.6% going in tax- adjusted cap rate a compelling investment opportunity. DMF is realizing a sizable discount to the peak pricing of the bull market in late 2021 – March 2022. Extremely motivated seller The seller has a floating-rate loan with a looming interest rate cap that is set to expire in the next few months. Rather than issue a capital call, the seller is motivated to sell before the interest rate cap expires to an experienced sponsor that can close. 6 Deal Highlights High Median Incomes $84k Median Household Incomes (1 mile) $91k Median Household Incomes (3 mile) $106k Median Household Incomes (zip code) Top-rated high school, HEB, & Starbucks The Retreat is walking distance to the top-rated High School in Klein ISD and the #5 school district in Harris County. The property is located across the street from HEB and Starbucks 98% Unrenovated or “Classic” Units Allows sponsor to create instant value through strategic interior renovations Large Floor Plans The Retreat boasts some of the largest floor plans in the submarket at 997 avg SF and features a unit mix comprised primarily of 65% two bedrooms & townhomes. 7 Buying Value Buying at a significant discount to current market (4.8-5.3%) pricing $5M+ in value increase potential by renovating units 6.6% Cap Rate (Tax Adj) $200+ Rent Deltas Discover Multifamily Team 9 Discover Multifamily Team Nathan Cloud Partner Brandon Durbin Partner Donnie Maberry Partner James Leffler Vice President of Capital Markets Aubrey Macklin Director of Marketing Ken Carter Director of Business Intelligence Chris De Celle Director of Capital Markets Mike Gasperetti Asset Manager 10 Partner Bio’s Brandon Durbin | Partner Donnie Maberry | Partner Nathan Cloud | Partner Nathan is the founding Partner of Discover Multifamily where he oversees Discover Multifamily’s strategic vision, acquisition strategy, and fostering capital relationships. Since 2020, he has sponsored over $52MM of multifamily acquisitions. Before starting Discover Multifamily, Nathan worked as an equity trader and portfolio manager for a proprietary trading firm in New York City. While on Wall Street, he developed both discretionary and algorithmic trading strategies for the firm’s portfolio. Brandon serves as a Partner of Discover Multifamily where he oversees operations and capital formation. Brandon has over a decade of commercial and multifamily real estate investment experience throughout Texas. Brandon has over 30 years of accounting and consulting experience. His consulting services have included many development and strategic projects, including joint ventures, acquisitions and sales of hospitals, foundation structures, and many other services for investor-owned facilities. Donnie Maberry is a Partner at Discover Multifamily where he oversees investment strategy and operational processes. Donnie is an experienced real estate investor and has acquired multifamily assets across Arizona, Florida, and Texas. Donnie brings his talents as a growth executive with more than fifteen years of proven expertise across multiple industries, including both healthcare and real estate development. 11 Professional Team With over 148,000 units under management, RPM Living is one of the largest and most successful vertically integrated multifamily management and investment firms in the country. DMF is vertically integrated with Empower, which provides accounting and taxation support internally. Newmark is the leading multifamily investment brokerage firm in Houston. Holland & Knight is a global law firm with over 2,000 attorneys who handle all aspects DMF’s legal transactions. USI provides property and liability insurance solutions for DMF. Popp Hutcheson handles all protests and litigation related to property taxes for DMF’s portfolio. 12 Assets Under Management Property MSA Vintage Units Acquisition Weatherly Walk Lakewood Coral Bay 506 South Atlanta, GA Houston, TX Houston, TX Houston, TX 1989 1976 1966 1969 Oct-19 Jan-21 Oct-21 Dec-21 194 88 41 180 Lakewood, Acquired 2021 13 Track Record: Rents *** numbers as of 7/30/2023 506 South, Acquired 2021 $1.21 $1.55 $1.00 $1.10 $1.20 $1.30 $1.40 $1.50 $1.60 Acquisition Current $1.01 $1.21 $0.90 $0.95 $1.00 $1.05 $1.10 $1.15 $1.20 Acquisition Current $808 $1,006 $800 $850 $900 $950 $1,000 $1,050 $863 $1,047 $850 $900 $950 $1,000 $1,050 $1,100 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Rent Increase PSF Rent Increase PSF Rent Increase Rent Increase 28%+ Increase 20%+ Increase Lakewood, Acquired 2021 14 Track Record: Renovated Units *** numbers as of 7/30/2023 506 South, Acquired 2021 Renovated Unit Increases Renovated Unit Increases % Increase % Increase $783 $934 $968 $1,153 $500 $700 $900 $1,100 $1,300 A1 B1 Acquisition Rents In-Place $763 $844 $873 $1,142 $1,085 $1,242 $1,175 $1,542 $500 $1,000 $1,500 $2,000 1c - Premium 2a - Premium 2b - Premium 3a - Premium Acquisition Rents In Place 23.6% 23.4% 23.3% 23.4% 23.4% 23.5% 23.5% 23.6% 23.6% A1 B1 42.2% 47.2% 34.6% 35.1% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 1c - Premium 2a - Premium 2b - Premium 3a - Premium Lakewood, Acquired 2021 15 Track Record: Pro Forma vs Actual *** numbers as of 7/30/2023 506 South, Acquired 2021 Pro Forma Rent vs Actual Rent Pro Forma Rent vs Actual Rent $825 $890 $975 $1,025 $992 $996 $1,077 $1,198 $500 $600 $700 $800 $900 $1,000 $1,100 $1,200 $1,300 A A1 B B1 Pro Forma In Place $825 $825 $850 $850 $975 $975 $975 $1,050 $1,050 $1,050 $1,050 $1,050 $1,050 $1,165 $1,165 $1,300 $1,375 $915 $840 $896 $940 $869 $872 $1,085 $1,006 $1,021 $1,242 $1,061 $1,108 $1,175 $1,290 $1,250 $1,356 $1,542 $500 $700 $900 $1,100 $1,300 $1,500 $1,700 1a 1a - Reno 1b 1b - Reno 1c 1c - Reno 1c - Premium 2a 2a - Reno 2a - Premium 2b 2b - Reno 2b - Premium 2c - Reno 2d 3a - Reno 3a - Premium Pro Forma In Place Lakewood, Acquired 2021 16 Track Record: NOI *** numbers as of 7/30/2023 506 South, Acquired 2021 NOI Growth $ NOI Growth $ NOI Increase NOI Increase $336,124 $445,641 $0 $100,000 $200,000 $300,000 $400,000 $500,000 Seller T12 T12 $646,327 $1,016,999 $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 Seller T12 T3 33% 0% 10% 20% 30% 40% T12 57% 0% 20% 40% 60% 80% T3 Executive Summary Executive Summary 18 Location Investment Highlights The Retreat, located in the Spring submarket, is regarded as one of the fastest-growing submarkets in Houston, TX. The Retreat offers excellent access to all major employment hubs and sits directly across the street from HEB, Starbucks, and the top-rated high school in Klein ISD. The current owner has only renovated 3 units leaving 133 or 98% “classic” units to renovate. In order to be more competitive with other renovated properties in the area, DMF will infuse $2.2M of capital by way of an extensive renovation program expanding upon curb appeal enhancements with new paint, landscaping, and strategic interior renovations. With strong submarket demand for enhanced interior updates, The Retreat is poised to benefit from an interior value-add initiative to modernize interiors and generate significant rental premiums. The current owner is achieving $166+ rent premiums (as of 7/26/23) on classic units giving the sponsor confidence in the ROI of our renovation spend and execution of the business plan. Project Summary Property Name The Retreat “Formally Cottages” Market Houston Submarket Spring Units 136 Year Built 1984 Purchase Price $18,300,000 Cap Rate (T3/T12) * 6.9% Cap Rate (T6/T12)* 6.7% Renovation Budget $2,179,170 Equity Required $8,554,483 Occupancy (as of 7/31/23) 96.3% Preferred Return 8% LP Split 70% GP Split 30% Hold Period 3-5 Years *Based on T3/T6 adjusted rental income with T12 expenses. Financing Loan Amount $11,895,000 LTV 65.0% Future Funding (100% of CapEx) $2,179,170 Interest Rate SOFR + 400 Loan Term 5 Year Term = 3 (+1) (+1) Interest Only Full Term of Loan Fixed or Floating Floating (Purchasing an in the money interest rate cap to “fix” our interest rate between 5.50-6.00% to mitigate risk) Amortizing Period Full Term Interest Only Exit Fee None Prepayment No prepayment penalty after 24 months *Subject to change prior to closing. Projected Returns 19 * Cumulative cash flow of $100,000 investor contribution. Estimated $ 202,470 Initial Investment + Cashflow + Sale $ 100,000 $ 3 4 , 297 $ 68,173 $ 5,210 $1 1,732 $1 8,875 $2 6,679 $3 4,297 $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 Year 1 Year 2 Year 3 Year 4 Year 5 6. 9 % Annual Cash on Cash 2.02 x Equity Multiple (Net) 1 6 9 % Internal Rate of Return (Net) Year 1 Year 2 Year 3 Year4 Year 5 Investor Payout % 5.2 % 6.5 % 7.1 % 7.8 % 7.6 % Cash flow $ 5,210 $ 6,522 $ 7,143 $ 7,804 $7, 618 Cumulative Cash flow $ 5,210 $1 1,732 $1 8,875 $2 6,679 $3 4,297 The following chart and graph represent a cumulative projection for potential income streams for an investor making a $100,000 equity contribution. Pro Forma