Building a portfolio with Vision, Knowledge & Integrity

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1 C O R P O R A T E P R O F I L E Building a portfolio with Vision, Knowledge & Integrity cardinalgroupinvestments.com

2 Integrity. CORPORATE PROFILE Cardinal Group Investments ( CGI ) is a full service real estate investment, development, advisory and management firm. The diverse experience of the company s principals enables it to draw from industry best practices to deliver superior results for investors and clients. CGI believes that the built environment should be interesting, vibrant, sustainable and enhance the human experience. CGI focuses on the end user, tailoring its strategies to create superior risk-adjusted returns and build value in the communities where they do business. CGI has offices in San Diego and Chicago, with ongoing projects in six states. Cardinal Group is made up of two affiliate companies: Cardinal Group Investments, LLC and Cardinal Group Management & Advisory, LLC. Del de Windt Principal Eric Frank Principal Jason Luker Principal Alex O Brien Principal Tom Waldron Principal

3 CARDINAL GROUP INVESTMENTS, LLC Cardinal Group Investments, LLC ( CGI ) is focused on direct real estate investments within its two core strategies: 1. Student Housing: Focus on acquiring undervalued and under-managed off-campus student housing assets throughout the United States. Targeted student markets have large flagship institutions that provide a high quality education at an affordable price. A great emphasis is placed on quality of location and barriers to entry, with an end goal of providing a stable cash flow that is likely to hold up through various economic environments. 2. Urban Infill: Focus on developing ground up or acquiring existing underperforming multifamily and mixed-use assets, and repositioning them through rehabilitation, entitlement, management and marketing. Targeted urban markets have high barriers-to-entry, vibrant and walkable urban neighborhoods, access to mass transit, 24-hour environments and a highly educated workforce. Demographics ultimately drive the long-term value of real estate and these dual strategies have been chosen to best capture the demand created by the two largest demographic cohorts: the Baby-Boomers and their offspring, the Echo Boomers. Baby Boomers are entering their retirement years and are trading the house in the suburbs for dual-primary households with a lock-and-leave home in the city and a second home in a lifestyle destination. Echo Boomers are currently making their way through college and into the workforce, moving largely to vibrant urban neighborhoods in knowledge based cities. Student housing caters directly to the Echo Boomers and their changing demands from a largely outdated stock of student housing. Urban Infill investment caters both to the Baby Boomers who tend to buy in vibrant urban neighborhoods, and Echo Boomers who tend to rent in these same highly desirable areas. By investing with a demographic tailwind, CGI seeks to realize strong risk adjusted returns through various economic environments, with an emphasis on in-place cash flow. CARDINAL GROUP MANAGEMENT & ADVISORY, LLC In addition to its principal investment activity, Cardinal Group Management & Advisory, LLC ( CGMA ) offers third-party advisory services, and asset and property management services. CGMA manages all of CGI s portfolio, as well as providing fee-based advisory work on behalf of property owners, lenders, attorneys and institutional investors. Services provided by CGMA include: Property/Asset Management Project Management Entitlement Processing Expert Witness/Analysis Fee Development Financial Feasibility and Underwriting Market Analysis Due Diligence Investment Prospectus Packaging Proforma Design

4 MANAGEMENT TEAM Del de Windt Del is primarily responsible for sales, marketing, design and overall corporate strategy. Del was previously an executive of Clear Creek Tahoe in Lake Tahoe, NV, a $300mm luxury golf and home community in the Sierra Nevada s. Prior to Clear Creek, Del served as the Director of Real Estate Operations for Manchester Financial Group in San Diego, CA. At Manchester, he was responsible for managing the company s existing portfolio and focusing on the acquisition, feasibility, and sales and marketing strategies for existing and future developments. He has worked on the development of several high-profile resort and hotel properties in San Diego, including: the 1,625 room Manchester Grand Hyatt Downtown San Diego and The Grand Del Mar Resort, Spa, Golf and Villas. Del is a graduate of Stanford University and holds a certificate in Real Estate from the University of California at San Diego. Del is a licensed real estate agent in California and Nevada. Eric Frank Eric is primarily responsible for overseeing CGI s acquisitions and managing development activities. He has diverse experience in development, acquisitions, asset management, and financial and market analysis. At the London Group Realty Advisors, he advised and managed on projects totaling over $3 billion. Eric has acquired multifamily properties throughout the Western U.S. and provides ongoing advisory services for a privately held portfolio with investments across the United States in various product types. He has acted as property and project manager on complex urban developments in excess of $75 million, primarily located in Chicago, Denver and Los Angeles. Eric holds a B.S. in Real Estate Finance and International Business from Indiana University s Kelley School of Business and holds a Master of Science in Real Estate from the University of San Diego s School of Business Administration. Eric is a licensed real estate broker in California. Jason Luker Jason is primarily responsible for the firm s entitlement and due diligence activities, including regulatory compliance and feasibility analyses. Jason is a former Director of Development Services for The London Group Realty Advisors where he performed market and financial analysis and helped secure entitlements for more than $3 billion of residential and commercial projects throughout California, Arizona and Colorado. Jason is a graduate of Stanford University and holds a Master s of Science in Real Estate from the University of San Diego s school of Business Administration. Jason is a licensed real estate broker in California. Alex O Brien Alex is primarily responsible for corporate finance and acquisitions analysis. At The London Group Realty Advisors he conducted financial feasibility analysis for all development types including urban infill, master-planned residential, commercial and mixed-use developments. He has worked on deals in markets across the US and in Mexico. Prior to his term at the London Group, Alex conducted analysis for the Sullivan Group Realty Advisors, Inc. and served as a Supply, Logistics and Finance Officer in the United States Marine Corps, responsible for more than $150 million in government assets. Alex received his B.S. in Finance from Miami University s Farmer School of Business in Oxford, OH and is currently seeking his Masters in Business Administration from the University of Chicago Booth School of Business. Tom Waldron Tom is primarily responsible for daily management and operations of CGI s existing portfolio. Prior to joining CGI, he was a Manager with Development Planning & Financing Group, Inc., a national real estate consulting firm specializing in municipal financing and special taxing districts. He has worked to provide funding for over $300 million in public residential infrastructure through the issuance of tax-exempt bonds. Tom received his B.S. from Miami University s Farmer School of Business in Oxford, OH with a major in Finance and a minor in Entrepreneurship. Tom is a licensed real estate agent in Ohio.

5 S E L E C T E D A S S E T S & E X P E R I E N C E Experience.

6 MULTIFAMILY INVESTMENTS Current Multifamily Assets CGI s current multifamily investment portfolio consists of 22 properties, which have been purchased since CGI is actively pursuing new acquisition opportunities for their student housing and infill investment strategies. Project Boutique Apartments - LP Purchase Location Denver, CO Description Discounted purchase of a controlling interest in an urban apartment fund. Three properties with 167 units in Denver s urban core. The limited partnership interests were purchased at a 55% discount, and the fund manager was kept in place. Role Sourcing, structuring and negotiation of the deal. Serving as Special Partner to the Fund and as Manager to the buying entity. Project MetroPointe Lofts Location Atlanta, GA Description 368 Unit, 1,214 bed student housing catering to students in the urban Atlanta market, including GA Tech & GA State University. Property was an REO with a large institutional lender and was purchased for $35.3 million on an all-cash-basis. Role Acquisition, property and asset management, construction oversight, investor relations, marketing and leasing. Project University Apartment on Riverbend Location Athens, GA Description 154 unit, 495 bed student housing catering to students at the University of Georgia. Purchased asset out of receivership by assuming and modifying the existing CMBS loan. Role Acquisition, property and asset management, construction oversight, investor relations, marketing and leasing.

7 MULTIFAMILY INVESTMENTS Current Multifamily Assets continued Project CG Student Housing Portfolio Location Madison, WI Description Portfolio consisting of development sites and apartment buildings at the University of Wisconsin, Madison. Role Acquisition, property and asset management, construction oversight, investor relations, market tracking, marketing and leasing. Project CG Student Housing Portfolio Location Oxford, OH Description Portfolio consisting of apartment buildings, duplexes and single family homes at Miami University. Role Acquisition, property and asset management, construction oversight, investor relations, marketing and leasing. Vision.

8 MULTIFAMILY Previous Multifamily Experience Prior to forming CGI, principals of CGI played a lead role in the following multifamily acquisitions, among others. Chico, CA Birchwood (36 U), Brentwood (32 U), Oakwood (18 U), Timbers (90 U) 176 Unit (Student Housing Portfolio) Aberdeen, WA Heather Meadows 81 Units Sacramento, CA Carmel Pointe 322 Units Des Moines, WA Crystal Bay 112 Units Tulare, CA Oak Park 80 Units Corning, CA Spring Mountain 184 Units

9 DEVELOPMENT Current Projects Principals of CGI are currently acting as principals or fee developers for the following projects: Project Denver Design District Location Denver, CO Description 75 acre, urban redevelopment with two light rail stations on site, located just outside of downtown Denver. Entitled for up to 10 million square feet to be built out over 20 years. Role Project management, entitlements, underwriting, market analysis and site plan development. Project 5566 Lindo Paseo Location San Diego, CA Description A 28 unit, suites style student apartment complex, adjacent to San Diego State University. Role Principal, entitlements, packaging and capital raising.

10 DEVELOPMENT Previous Experience Prior to forming CGI, principals of CGI played a lead role as managers on the following developments. Project Clear Creek Tahoe Location Lake Tahoe, NV Description A $300mm, 5,800 acre private golf club, residential community in the Sierra Nevada s. Role Executive Development Team Project Dos Lagos Location Corona, CA Description Mixed-use master planned community located on 535 acres that combines residential, retail, schools, golf and parks. Role Coordination of $60mm in public bond financing Project Manchester Grand Hyatt Downtown San Diego Location San Diego, CA Description Second largest Hyatt in the world; 1,625 rooms in downtown San Diego. Most profitable Hyatt in the company s worldwide chain. Role Executive Development Team

11 DEVELOPMENT Previous Experience continued Project Rancho La Puerta Location Tecate, BCN Mexico Description 3,000 acre, world-famous spa and resort transitioning into master planned mixed-use community. Role Strategic planning and site design, entitlement and underwriting. Project The Grand Del Mar Location Del Mar, CA Description $300mm, 249 room, 5 star resort, spa, villas and golf club. 40 luxury fractional ownership villas. Role Executive Development Team Project PAC Lofts Location Chicago, IL Description 99 unit loft conversion from former 133,000 square foot factory ( Role Underwriting, due diligence, property management, sales & marketing.

12 ASSET MANAGEMENT & CONSULTING Current Projects Principals of CGI are currently managing the following projects on a fee-based asset management or consulting basis. Project Harbor Shores Medical Office Location Phoenix, AZ Description 55,000 square foot medical facility anchored by Cigna Healthcare. Role Acquisitions underwriting, asset management and repositioning. Project Burni Real Estate Portfolio Location San Diego, CA Description 250,000 square foot real estate portfolio of commercial, residential and hospitality property. Role Asset management, due diligence, underwriting analysis, capital allocation and structured finance. Management.

13 ASSET MANAGEMENT & CONSULTING Previous Experience Prior to forming CGI, principals of CGI completed fee-based asset management or consulting work for the following projects. Project Vulcan Materials Co. Portfolio Redevelopment Location CA Description Portfolio of aggregate mining sites that have been exhausted and are located in strategic redevelopment areas throughout California. Role Strategic planning, market studies, valuation and entitlements. Project Wal-Mart Inland Empire Location Riverside County, CA Description Portfolio of new Wal-Mart sites in Southern CA. Role Strategic planning, market studies. Project Story Mill Location Bozeman, MT Description 84 acre, LEED Certified, urban development planned for 1,200 residential units and 180,000 SF of commercial space. Role Underwriting, site plan development, market study, strategic oversight.

14 ASSET MANAGEMENT & CONSULTING Previous Experience Continued Project Main Street Marketplace Location Evanston, IL Description 126,000 SF shopping center renovated and released using new market tax credits. Role Property management, leasing, oversight or tenant buildout. Knowledge.