OFFERING MEMORANDUM KPO PROPERTIES COLUMBIA, MO

OFFERING MEMORANDUM KPO PROPERTIES COLUMBIA, MO

Confidentiality Agreement The information contained in the following offering memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Maher Commercial Real Estate, and should not be made available to any other person or entity without the written consent of Maher Commercial Real Estate. This offering memorandum has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Maher Commercial Real Estate has not made any investigation, and makes no warranty or representation with respect to any of the information included in this offering memorandum. The information contained in this offering memorandum has been obtained from sources we believe to be reliable. Maher Commercial Real Estate, however, has not verified, and will not verify, any of the information contained herein. Maher Commercial Real Estate has not, and will not, conduct any investigation regarding these matters, and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. Any potential buyer must take appropriate steps to verify all of the information set forth herein. The information contained herein is for illustration only - dimensions are approximate only. This information is not to be reproduced or used for construction or permitting. The information contained within this offering memorandum is believed to be accurate as of the date of input, however, Maher Commerdal Real Estate assumes no responsibility for the accuracy of the information provided.

Table of Contents PROPERTY OVERVIEW...4 AERIALS...7 COLUMBIA DEMOGRAPHICS...9 FINANCIAL & RENT ROLL...10 CONTACT INFO...13 OFFERING MEMORANDUM KPO PROPERTIES COLUMBIA, MO 3

Property Overview KPO PROPERTIES: 3902 ROCK QUARRY RD. 3604 HERMITAGE 1805-1931 JUNIPER CIRCLE 1800-1815 QUARRY PARK 3700-3825 VILLAGE PARK % 100 353 OCCUPANCY RATE 133 BEDS TOTAL UNITS 46 87 2BR UNITS 3BR UNITS OFFERING MEMORANDUM KPO PROPERTIES COLUMBIA, MO 4

Property Overview JUNIPER RIDGE ROCK QUARRY VILLAGE HERMITAGE APARTMENTS OFFERING MEMORANDUM KPO PROPERTIES COLUMBIA, MO 5

KPO Properties, LLC KPO Properties was founded to provide high quality housing and service at reasonable prices for the population of university students and residents of Columbia, Missouri. This property nicely fits the niche between the new, luxury student housing that is very expensive and unaffordable to many, and the inexpensive housing that is available to virtually all budgets but is old and in relatively poor repair. Branded as such, this property has enjoyed 100% occupancy for 15 years, and usually has a waiting list for tenancy. The ownership prides itself in providing comfortable units at affordable rates, rapidly-responsive, high-quality service and polite, helpful management. All the units provide garages with garage door openers, plenty of additional parking, vaulted ceilings, ceiling fans, full sets of kitchen appliances, washers and dryers, microwave ovens, over-sized or walk-in closets, private bathrooms, plenty of storage, fireplaces and landscape maintenance including snow removal, although specific features may vary by unit. Additionally, all the units are cable and internet ready. These units are in an area of town that is considered most desirable by residents and students who prefer to live off-campus. OFFERING MEMORANDUM KPO PROPERTIES COLUMBIA, MO 6

Aerials OFFERING MEMORANDUM KPO PROPERTIES COLUMBIA, MO 7

Aerials OFFERING MEMORANDUM KPO PROPERTIES COLUMBIA, MO 8

Demographics Columbia is the fourth largest city in Missouri at nearly 120,000 residents. Boone county which Columbia resides is home to roughly 175,000 people. Studies frequently rank Columbia as a top city in which to live for educational facilities, health care, technology, economic growth, cultural opportunities, and cost of living. The city has been ranked as high as the second-best place to live by Money Magazine s annual list and is regularly in the top 100. The city of Columbia is located on Interstate 70, roughly equidistant from the cities of St. Louis and Kansas City. Greater St. Louis is 70 miles to the east while Kansas City is 100 miles to the west. Columbia serves as the home of the main campus for the University of Missouri, as well as the campuses of Columbia College and Stephens College. Over half the population of Columbia holds a bachelor degree and over a quarter have a Masters degree, placing Columbia in the top 20 list of most highly educated municipalities. With a low cost of living, it does not take a large amount of income to make your family comfortable in Columbia. The high standard of living has resulted in a steady population increase year over year. In the past five years Columbia s population has grown by nine percent. With new employers Smith & Wesson and Aurora Farms building facilities in the Columbia area, the population will continue to steadily grow. These new employers plan to provide hundreds of jobs to residents in Boone County. Overall, the City of Columbia provides a bountiful supply of resources & entertainment for residence and tourists. OFFERING MEMORANDUM KPO PROPERTIES COLUMBIA, MO 9

Financials & Rent Roll KPO - NOI - FY2016 January - December 2016 Ordinary Income/Expense Income Fee Income Rental Income Total Income 2,204.00 1,206,035.62 1,208,239.62 Gross Profit Expense Advertising and Marketing Bank Fees/Charges/Errors Cleaning & Maintenance Insurance Legal and Professional Fees Office/Corporate Expenses Taxes Travel & Mileage Utilities Wages and Salary Expenses Total Expense Net Ordinary Income Other Income/Expense Other Income Interest Income Other Income Total Other Income Net Other Income Net Income 1,208,239.62 5,373.75 40.00 66,074.86 60,039.86 6,082.00 2,071.31 102,314.38 1,055.13 10,450.83 117,314.49 370,816.61 837,423.01 373.45-130.00 243.45 243.45 837,666.46 OFFERING MEMORANDUM KPO PROPERTIES COLUMBIA, MO 10

2017-18 KPO Rent Roll Unit BR Target Rent 3604 A Hermitage 2 $600.00 3604 B Hermitage 2 $600.00 3604 C Hermitage 2 $600.00 3604 D Hermitage 2 $600.00 3604 E Hermitage 2 $600.00 3604 F Hermitage 2 $600.00 3604 G Hermitage 2 $600.00 3604 H Hermitage 2 $600.00 1805 Juniper Circle 3 $885.00 1807 Juniper Circle 3 $885.00 1809 Juniper Circle 3 $885.00 1809 Juniper Drive 3 $885.00 1811 Juniper Circle 3 $885.00 1811 Juniper Drive 3 $885.00 1812 Juniper Circle 3 $885.00 1813 Juniper Circle 3 $885.00 1814 Juniper Circle 3 $885.00 1815 Juniper Circle 3 $885.00 1817 Juniper Circle 3 $885.00 1819 Juniper Circle 3 $885.00 1900 Juniper Circle 3 $885.00 1901 Juniper Circle 3 $885.00 1901 Juniper Drive 3 $885.00 1902 Juniper Circle 3 $885.00 1903 Juniper Circle 3 $885.00 1903 Juniper Drive 3 $885.00 1904 Juniper Circle 3 $885.00 1905 Juniper Circle 3 $885.00 1905 Juniper Drive 3 $885.00 1906 Juniper Circle 3 $885.00 1907 Juniper Circle 3 $885.00 1907 Juniper Drive 3 $885.00 1908 Juniper Circle 3 $885.00 1909 Juniper Circle 3 $885.00 1909 Juniper Drive 3 $885.00 1910 Juniper Circle 3 $885.00 1911 Juniper Circle 3 $885.00 1911 Juniper Drive 3 $885.00 1913 Juniper Circle 3 $885.00 1913 Juniper Drive 3 $885.00 Unit BR Target Rent 1914 Juniper Circle 2 $700.00 1915 Juniper Circle 3 $885.00 1915 Juniper Drive 3 $885.00 1916 Juniper Circle 2 $700.00 1917 Juniper Circle 3 $885.00 1918 Juniper Circle 3 $885.00 1919 Juniper Circle 3 $885.00 1920 Juniper Circle 3 $885.00 1921 Juniper Circle 3 $885.00 1923 Juniper Circle 3 $885.00 1925 Juniper Circle 3 $885.00 1927 Juniper Circle 3 $885.00 1929 Juniper Circle 3 $885.00 1931 Juniper Circle 3 $885.00 3800 A Rock Quarry Rd 3 $885.00 3800 B Rock Quarry Rd 3 $885.00 3800 C Rock Quarry Rd 3 $885.00 3800 D Rock Quarry Rd 3 $885.00 3802 A Rock Quarry Rd 3 $885.00 3802 B Rock Quarry Rd 3 $885.00 3802 C Rock Quarry Rd 3 $885.00 3802 D Rock Quarry Rd 3 $885.00 3804 A Rock Quarry Rd 3 $885.00 3804 B Rock Quarry Rd 3 $885.00 3806 A Rock Quarry Rd 3 $885.00 3806 B Rock Quarry Rd 3 $885.00 3806 C Rock Quarry Rd 3 $885.00 3808 A Rock Quarry Rd 3 $885.00 3808 B Rock Quarry Rd 3 $885.00 3808 C Rock Quarry Rd 3 $885.00 3808 D Rock Quarry Rd 3 $885.00 3810 Rock Quarry Rd 3 $750.00 3812 Rock Quarry Rd 3 $750.00 3814 Rock Quarry Rd 3 $750.00 3816 Rock Quarry Rd 3 $750.00 3902 Rock Quarry Rd(Office) 3 $0.00 3904 Rock Quarry Rd 3 $750.00 3906 Rock Quarry Rd 3 $750.00 3908 Rock Quarry Rd 3 $750.00 OFFERING MEMORANDUM KPO PROPERTIES COLUMBIA, MO 11

2017-18 KPO Rent Roll (contd.) Unit BR Target Rent 1800 Quarry Park 3 $885.00 1801 Quarry Park 3 $885.00 1802 Quarry Park 3 $885.00 1803 Quarry Park 3 $885.00 1804 Quarry Park 3 $885.00 1805 Quarry Park 3 $885.00 1806 Quarry Park 3 $885.00 1807 Quarry Park 3 $885.00 1808 Quarry Park 3 $885.00 1809 Quarry Park 3 $885.00 1810 Quarry Park 3 $885.00 1811 Quarry Park 3 $885.00 1813 Quarry Park 3 $885.00 1815 Quarry Park 3 $885.00 3700 Village Park 3 $885.00 3701 Village Park 3 $885:00 3702 Village Park 3 $885.00 3703 Village Park 3 $885.00 3704 Village Park 2 $680.00 3706 Village Park 2 $680.00 3708 Village Park 2 $680.00 3710 Village Park 2 $680.00 3712 Village Park 2 $680.00 3714 Village Park 2 $680.00 3716 Village Park 2 $680.00 3718 Village Park 2 $680.00 3720 Village Park 2 $680.00 3722 Village Park 2 $680.00 3724 Village Park 2 $680.00 3726 Village Park 2 $680.00 3800 Village Park 2 $680.00 3801 Village Park 2 $680.00 3802 Village Park 2 $680.00 3803 Village Park 2 $680.00 3804 Village Park 2 $680.00 3805 Village Park 2 $680.00 3806 Village Park 2 $680.00 3807 Village Park 2 $680.00 Unit BR Target Rent 3808 Village Park 2 $680.00 3809 Village Park 2 $680.00 3810 Village Park 2 $680.00 3811 Village Park 2 $680.00 3812 Village Park 2 $680.00 3813 Village Park 2 $680.00 3814 Village Park 2 $680.00 3815 Village Park 2 $680.00 3816 Village Park 2 $680.00 3817 Village Park 2 $680.00 3818 Village Park 2 $680.00 3819 Village Park 2 $680.00 3820 Village Park 2 $680.00 3821 Village Park 2 $680.00 3822 Village Park 2 $680.00 3823 Village Park 2 $680.00 Total $105,845.00 OFFERING MEMORANDUM KPO PROPERTIES COLUMBIA, MO 12

Listing Team Contact Info Jack L. Maher III Broker-Officer JLM Properties, Inc. 3610 Buttonwood Dr., Suite 200, Columbia, MO 65201 c. 573.489.6860 w. 573.228.6321 f. 573.886.8901 maher3@jlmproperties.com OFFERING MEMORANDUM KPO PROPERTIES COLUMBIA, MO 13