Highgate Holdings

Preliminary Asset Underwriting:

Real Estate Asset Acquisition

Seattle Student Housing

0
Washington

Analysis as of June 01, 2019

Although Highgate Holdings, Inc. ("Highgate") has used reasonable care in obtaining the information and assembling the estimates
and projections contained herein, this material is submitted without representation or warranty. All information is subject to
modification due to changes in the market, further clarifications, or other events beyond the control of Highgate.

Page 1 of 47
Seattle Student Housing HIGHLY CONFIDENTIAL
Preliminary Valuation Analysis
TRANSACTION OVERVIEW
$ in 000's

TRANSACTION OVERVIEW SOURCES & USES OF CAPITAL

Asset Name Seattle Student Housing USES OF CAPITAL: $ PER KEY PGSF %
Address Purchase Price $17,500 $72,917 $350 93.4%
State Washington Unlevered Development Capital - - - -
Property Type Student Housing Working Capital Reserve (In Soft Costs) - - - -
Title Interest Fee Simple Construction Interest Reserve $998 $4,158 $20 5.3%
Units 240 Operating Interest Reserve - - - -
Beds 600 Legal $150 $625 $3 0.8%
Beds Per Manager 40 Due Diligence $28 $115 $1 0.1%
Gross SF 50000 Title Insurance $53 $219 $1 0.3%
Date Acquired 10/31/18 Mortgage Recording Tax - - - -
Summer Start Date/Months 30-Nov 3 Finance Fees - - - -
TOTAL BASIS $18,728 $78,033 $375 100.0%
INITIAL UNIT BREAKDOWN UNLEVERED BASIS $17,730 $73,875 $355 94.7%
Bedroom 1 2 3 4 Total
Units 60 60 60 60 240 SOURCES OF CAPITAL: $ PER KEY PGSF LTV
Beds 60 120 180 240 600 Secured Mortgage Debt $13,109 $54,623 $262 70.0%
Monthly Base Rent (2018) $600 $575 $550 $525 $550 Mezzanine Debt - - - 70.0%
Sponsor Equity $5,618 $23,410 $112 100.0%
RENOVATION TIMING ASSUMPTIONS SOURCES OF CAPITAL $18,728 $78,033 $375 100.0%
Acquisition Date 10/31/18
Pre-Renovation / Planning 8 Months 6/30/19 #REF! EXIT ASSUMPTIONS - HOTEL
Renovation 12 Months 6/30/20 Investment Hold 5 Years
Total Renovation Period 20 Months 6/30/20 Exit Date PER KEY 10/31/23
Date / Year Completed 0 Months 6/30/20 EXIT TTM NOI $11,769 $2,825
Exit TTM Cap Rate 8.50%
BASIS & YIELD ANALYSIS Gross Proceeds $33,231
NOI PURCHASE ALL-IN PROCEEDS PER KEY $138,463
Value $17,500 $18,728 Disposition Costs 3.00%
PER UNIT $72,917 $78,033
PSF (Gross) $350 $375 PROFIT ANALYSIS
Run Rate Yield (2018 Terms) $1,612 9.1% CAPITAL APPRECIATION:
Stabilized Yield 2021 $1,905 10.7% Net Disposition Proceeds (Plus WC Return) $32,234
Exit Yield on Basis $2,825 15.9% - Unlevered Basis ($17,730)
Capital Appreciation Profits $14,504
INVESTMENT SUMMARY % of Unlevered Profits 69.2%
Unlevered IRR 17.8% INVESTMENT TERM CASH FLOWS:
Cash-on-Cash Yield (Fiscal Year) - , 4.5%, 9.8%, 10.9%, 11.2% Net Operating Income (Net of Retail Leasing and Capital Costs) $6,458
Peak Capital $17,730 Cash Flow Profits $6,458
Unlevered Profits $20,962 % of Unlevered Profits 30.8%
Multiple 2.18x TOTAL UNLEVERED PROFITS 100.0% $20,962
Levered IRR Err:504 - Debt Service 14.7% ($3,072)
Cash-on-Cash Yield (Fiscal Year) Err:509 TOTAL LEVERED PROFITS 85.3% $17,891
Peak Equity $5,618
Levered Profits Err:509 RUN RATE YIELD ANALYSIS
Multiple Err:509 LAND PRICE 16,000 16,500 17,000 17,500 18,000
Levered Payback Period Err:509 Run Rate Yield

OPERATING SUMMARY 2020 -

ACTUAL ESTIMATED 2025
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 CAGR

PROPERTY OPERATING
REVENUE - - $2,024 $4,130 $4,212 $4,297 $4,383 $4,470 $4,560
Y-o-Y Change: - - - 104.0% 2.0% 2.0% 2.0% 2.0% 2.0%
GOP - - $1,473 $2,971 $3,031 $3,091 $3,153 $3,216 $3,280
Y-o-Y Change - - - 101.7% 2.0% 2.0% 2.0% 2.0% 2.0%
GOP Margin - - 72.8% 71.9% 71.9% 71.9% 71.9% 71.9% 71.9%
EBITDA - - $1,001 $2,009 $2,051 $2,094 $2,138 $2,183 $2,229
Y-o-Y Change - - - 100.8% 2.1% 2.1% 2.1% 2.1% 2.1%
EBITDA Margin: - - 49.4% 48.6% 48.7% 48.7% 48.8% 48.8% 48.9%
FEE NOI - - $948 $1,905 $1,947 $1,990 $2,034 $2,079 $2,125
Y-o-Y Change - - - 100.8% 2.2% 2.2% 2.2% 2.2% 2.2%
Fee NOI Margin: - - 46.8% 46.1% 46.2% 46.3% 46.4% 46.5% 46.6%
NOI - - $948 $1,905 $1,947 $1,990 $2,034 $2,079 $2,125
Y-o-Y Change - - - 100.8% 2.2% 2.2% 2.2% 2.2% 2.2%
NOI Margin: - - 46.8% 46.1% 46.2% 46.3% 46.4% 46.5% 46.6%
Unlevered COC Yield - - 5.3% 10.7% 11.0% 11.2% 11.5% 11.7% 12.0%
NOI PER KEY - - $3,952 $7,936 $8,112 $8,292 $8,475 $8,662 $8,852

DEAL OPERATING CASH FLOWS - FISCAL YEAR

10/31/18 10/31/19 10/31/20 10/31/21 10/31/22 10/31/23
UNLEVERED CASH FLOW - $790 $1,745 $1,940 $1,983
Mortgage Debt Service ($589) ($615) ($623) ($623) ($623)
Mezz Debt Service - - - - -
Total Debt Service ($589) ($615) ($623) ($623) ($623)
FREE CASH FLOW ($589) $176 $1,123 $1,317 $1,360
BLENDED DEBT SERVICE RATE 4.75% 4.76% 4.75% 4.75% 4.75%
DEBT SERVICE COVERAGE - 1.29x 2.80x 3.12x 3.18x
LEVERED CASH FLOW YIELD Err:509 10.4% 20.0% 23.4% 24.2%

Page 2 of 47
Seattle Student Housing HIGHLY CONFIDENTIAL
Preliminary Valuation Analysis
$ in 000's

FINANCING ASSUMPTIONS
ACQUISITON LTV 70.0%
BLENDED COST OF FINANCING Err:504
AVERAGE LTC 69.6%

MORTGAGE DEBT:
Loan to Cost PER KEY PGSF 70.0%
Borrowing Base $78,033 $375 $18,728
Gross Loan Balance $54,623 $262 $13,109
Financing Fees - -
Mortgage Recording Tax - -
Operating Interest Reserve? NO
Excess Interest Reserve -
Base Rate Prime
Spread 75bps
Floor 0bps
Amortization 0 Years
Refinancing:
Refinance? NO
Refinancing Year / Date Year 10 10/31/28
LTM NOI $1,993
Refinancing Cap Rate 8.50%
Refinancable Value $23,452
LTV 75.00%
Gross Proceeds $17,589

Financing Fees 2.00% ($352)

All-In Rate 8.00%
Base Rate LIBOR
Spread 350bps
Floor 0bps

MEZZANINE DEBT:
Mezzanine Debt? NO
Cumulative LTC 50.0%
Real Estate & Improved Value $18,728
Cumulative Loan Balance $9,364
Mezzanine Debt Balance -
Financing Fees 1.00% -
Interest Reserve Requirements 0 Months
Base Rate LIBOR
Spread 400bps
Floor 400bps
Amortization 0 Years

FEES & OTHER ASSUMPTIONS

Asset Management Fee -

Stabilized FF&E -
FEE PHASE-IN: PHASE-IN? TERM PER ANNUM STAB YR
Franchise Royalty Fees YES 1 Yrs 1.0% 12/31/22

Page 3 of 47
Seattle Student Housing
Renovation Budget

PR

PROJECT TIMING ASSUMPTIONS

ACQUISITION:
Property Acquisition
Due Diligence / Legal / Working Capital Reserve
TOTAL ACQUISITION

HARD COSTS:
Hard Costs
TOTAL HARD COSTS

FF&E / OSE & PRE-OPENING COSTS:

FF&E/OSE/IT/Lobby
Pre-Opening Costs
TOTAL FF&E / OSE & PRE-OPENING COSTS

SOFT COSTS:
Soft Costs
Development Fee (1)
TOTAL SOFT COSTS

CONTINGENCY:
Contingency (2)
TOTAL CONTINGENCY
Page 4 of 47
FINANCING COSTS:
Mortgage Recording Tax / Advisory Fees / Closing Costs / Appraisal / Market Study Fees / Inspection Fees
Mortgage Broker
Lender's points
Real Estate Taxes
Construction Interest (3)
TOTAL FINANCING COSTS

TOTAL PROJECT BASIS

UNLEVERED PROJECT BASIS
TOTAL DEVELOPMENT COST (EX ACQ.)
UNLEVERED DEVELOPMENT COST

FINANCING ASSUMPTIONS
LTC (Including Land Basis)
Gross Proceeds
Rate

Notes
(1) Assumes 0.0% development fee paid on Hard Costs, FF&E/OSE & Pre-Opening Costs and Soft Costs.
(2) Assumes 0.0% contingency on Hard Costs, Pre-Opening Costs and Soft Costs.
(3) For indicative purposes, construction interest is based on typical construction loan, assuming Sponsor funds 100% of its e
#DIV/0!
mortgage broker fee of 0bps, and lender upfront points of 0.0% of gross loan balance.

Page 5 of 47
 PRELIMINARY RENOVATION COST ESTIMATE
TIMING ASSUMPTIONS
PLAN CONSTRUCT BEGIN TERM
8 months 12 months 10/31/18 20 months
Driver Input Upfront % Upfront $ Term % Frequency Begin Term
Value $17,500,000 100.0% $17,500,000 - 20 months 0 months 1 months
Value $230,000 100.0% $230,000 - 20 months 0 months 1 months
$17,730,000

$ - - - 100.0% 1 months 8 months 6 months

-

PER KEY - - - 100.0% 1 months 14 months 6 months

$ - - - 100.0% 1 months 14 months 6 months
-

$ - 75.0% - 25.0% 1 months 0 months 8 months

% -- - - 100.0% 1 months 0 months 20 months
-

% -- - - 100.0% 1 months 0 months 20 months

-
Page 6 of 47
 $ - 100.0% - - 1 months 0 months 8 months
% -- 100.0% - - 1 months 0 months 8 months
% -- 100.0% - - 1 months 0 months 8 months
$ - - - 100.0% 1 months 0 months 20 months
% - - 100.0% 1 months 0 months 20 months
-

ds 100% of its equity commitment before drawing the

Page 7 of 47
 HIGHLY CONFIDENTIAL

Err:509
END GSF UNITS
6/30/20 50,000 240
End $ PGSF PER KEY
1 months $17,500,000 $350.00 $72,917
1 months $230,000 $4.60 $958
$17,730,000 $354.60 $73,875

14 months - - -
- - -

20 months - - -
20 months - - -
- - -

8 months - - -
20 months - - -
- - -

20 months - - -
- - -
Page 8 of 47
 8 months - - -
8 months - - -
8 months - - -
20 months - - -
20 months $997,816 $19.96 $4,158
$997,816 $19.96 $4,158

$18,727,816 $374.56 $78,033

$17,730,000 $354.60 $73,875
$997,816 $19.96 $4,158
- - -

70.0%
$13,109,472
L + 75bps

Page 9 of 47
D33: Neal Wadhwa:
Per Rob Dann - Includes Mortgage Recording Tax

Page 10 of 47
Seattle Student Housing
Competitive Set Analysis
OTHER ASSUMPTIONS / DRIVERS

ASSET TITLE FEE

TYPE INTEREST TYPES
Limited Service Fee Simple %
Select Service Leasehold PER ROOM
Full Service $
Luxury

WORKING CAPITAL / OTHER ASSUMPTION

BRANDING ASSUMPTIONS

COMPETITIVE SET

1 Seattle Student Housing

2 Homewood Suites Pensacola Airport Cordova Mall Area
3 Hampton Inn & Suites Pensacola I 10 North @ University Town Plaza
4 TownePlace Suites Pensacola

Page 11 of 47
 5 Springhill Suites Pensacola
6 Candlewood Suites Pensacola University Area
COMPETITIVE SET AVERAGE
Subject % Difference

SUPPLY

PROJECT

Home2 Suties Gulf Breeze

TOTAL PROJECTED NEW SUPPLY

COMPETITIVE SET MAP

Page 12 of 47
HER ASSUMPTIONS

UMPTIONS

T
YEAR
Units OPEN Distance Base
to Campus
Unit Configuration

240 2017 2017

107 2003 2/1
y Town Plaza 85 2005 2/1
97 2008 2/1

Page 13 of 47
 106 2013 2/1
95 2016 2/1
98 2009 #DIV/0! #DIV/0!
144.9%
Distance to Base Unit
Campus Configuration

OPENING
ADDRESS / LOCATION DATE KEYS

Us. 98 & McClure Dr 2020 109

109

MAP

Page 14 of 47
 HIGHLY CONFIDENTIAL

MTG.
STATE RECORD.
Alabama -
Alaska -
American Samoa -
Arizona -
Arkansas 0.15%
-
COMPETITIVE SET MAP
Aditional
Unit SF Base Rent per Bed
Rent PSF

2017 2017 2017

700 413
700 413
700 413

Page 15 of 47
 700 413
700 413
700 413 #DIV/0!

Unit SF Base Rent per Bed Rent PSF

-
-
-
-
0.23%
-
-
-
-
-
-
-
-
2.80%
-
-
-
-
0.10%
-

Page 16 of 47
 -
-
-
-
-
0.12%
-
-
-
-
-
-
-
-
-
-

Page 17 of 47
Seattle Student Housing HIGHLY CONFIDENTIAL
Occupancy & Rate Projections

Room Breakdown
Year 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2032 2033
Summary
Unit Breakdown
1-Bedroom 60 60 60 60 60 60 60 60 60 60 60 60 60 60
2-Bedroom 60 60 60 60 60 60 60 60 60 60 60 60 60 60
3-Bedroom 60 60 60 60 60 60 60 60 60 60 60 60 60 60
4-Bedroom 60 60 60 60 60 60 60 60 60 60 60 60 60 60
Total Units 240 240 240 240 240 240 240 240 240 240 240 240 240 240
Total Beds 600 600 600 600 600 600 600 600 600 600 600 600 600 600
Less Management Beds 15 15 15 15 15 15 15 15 15 15 15 15 15 15
Total Net Leasable Beds 585 585 585 585 585 585 585 585 585 585 585 585 585 585

Monthly Other
Additional Monthly Rent POB $18 $18 $19 $19 $19 $20 $20 $21 $21 $22 $22 $22 $24 $24
Parking POB $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Collection Loss & Bad Debt 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0%

Monthly Projected Per Bed Rent

School Months
Vacancy 5.0% 4.0% 3.4% 3.4% 3.4% 3.4% 3.4% 3.4% 3.4% 3.4% 3.4% 3.4% 3.4% 3.4%
Change in Vacancy -20.0% -15.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
1-Bedroom $600 $612 $624 $637 $649 $662 $676 $689 $703 $717 $731 $746 $792 $808
2-Bedroom $575 $587 $598 $610 $622 $635 $648 $660 $674 $687 $701 $715 $759 $774
3-Bedroom $550 $561 $572 $584 $595 $607 $619 $632 $644 $657 $670 $684 $726 $740
4-Bedroom $525 $536 $546 $557 $568 $580 $591 $603 $615 $627 $640 $653 $693 $707
School AMR $550 $561 $572 $584 $595 $607 $619 $632 $644 $657 $670 $684 $726 $740
School Months Rented 9.0 9.0 9.0 9.0 9.0 9.0 9.0 9.0 9.0 9.0 9.0 9.0 9.0 9.0

Summer Months
Vacancy 20.0% 16.0% 13.6% 13.6% 13.6% 13.6% 13.6% 13.6% 13.6% 13.6% 13.6% 13.6% 13.6% 13.6%
Change in Vacancy -20.0% -15.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Discount to School Months 20.0% 20.0% 20.0% 20.0% 20.0% 20.0% 20.0% 20.0% 20.0% 20.0% 20.0% 20.0% 20.0% 20.0%
1-Bedroom Rent $480 $490 $499 $509 $520 $530 $541 $551 $562 $574 $585 $597 $633 $646
2-Bedroom Rent $460 $469 $479 $488 $498 $508 $518 $528 $539 $550 $561 $572 $607 $619
3-Bedroom Rent $440 $449 $458 $467 $476 $486 $496 $505 $516 $526 $536 $547 $581 $592
4-Bedroom Rent $420 $428 $437 $446 $455 $464 $473 $482 $492 $502 $512 $522 $554 $565
Summer AMR $440 $449 $458 $467 $476 $486 $496 $505 $516 $526 $536 $547 $581 $592
Summer Months Rented 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0

Blended AMR $522.5 $533.0 $543.6 $554.5 $565.6 $576.9 $588.4 $600.2 $612.2 $624.4 $636.9 $649.7 $689.4 $703.2
Blended AYR $6,270 $6,395 $6,523 $6,654 $6,787 $6,923 $7,061 $7,202 $7,346 $7,493 $7,643 $7,796 $8,273 $8,439
Blended Vacancy Loss 8.8% 7.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0%

Occupancy
School
School Months occupied 0 0 6 11 11 11 11 11 11 11 11 11 11 11
School occupancy 0.0% 0.0% 96.6% 88.6% 88.6% 88.6% 88.6% 88.6% 88.6% 88.6% 88.6% 88.6% 88.6% 88.6%
Occupied Beds 0.0 0.0 580.1 533.0 533.0 533.0 533.0 533.0 533.0 533.0 533.0 533.0 533.0 533.0
Summer
Summer Months Occupied 0 0 0 1 1 1 1 1 1 1 1 1 1 1
Summer occupancy 0.0% 0.0% 0.0% 7.2% 7.2% 7.2% 7.2% 7.2% 7.2% 7.2% 7.2% 7.2% 7.2% 7.2%
Occupied Beds 0.0 0.0 0.0 57.1 57.1 57.1 57.1 57.1 57.1 57.1 57.1 57.1 57.1 57.1
Total
Total Months Occupied 0 0 6 12 12 12 12 12 12 12 12 12 12 12
Total Occupancy 0.0% 0.0% 96.6% 95.75% 95.8% 95.8% 95.8% 95.8% 95.8% 95.8% 95.8% 95.8% 95.8% 95.8%
Blended Occupied Beds 0.0 0.0 580.1 575.1 575.1 575.1 575.1 575.1 575.1 575.1 575.1 575.1 575.1 575.1
Change in Blended Occupied Beds 0.0% 0.0% 0.0% -0.9% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

Revenue
School
Monthly RevPAB $0 $0 $553 $564 $575 $587 $598 $610 $623 $635 $648 $661 $701 $715
Yearly RevPAB $0 $0 $3,317 $6,202 $6,326 $6,453 $6,582 $6,713 $6,848 $6,984 $7,124 $7,267 $7,711 $7,866
Gross Revenue $2,970,000 $3,029,400 $3,089,988 $3,151,788 $3,214,824 $3,279,120 $3,344,702 $3,411,596 $3,479,828 $3,549,425 $3,620,413 $3,692,822 $3,918,852 $3,997,229

Summer
Monthly RevPAB $0 $0 $0 $403 $411 $420 $428 $437 $445 $454 $463 $473 $502 $512
Yearly RevPAB $0 $0 $0 $29 $30 $30 $31 $31 $32 $33 $33 $34 $36 $37
Gross Revenue $792,000 $807,840 $823,997 $840,477 $857,286 $874,432 $891,921 $909,759 $927,954 $946,513 $965,444 $984,752 $1,045,027 $1,065,928

Blended Untrended Revenue

Monthly RevPAB $0 $0 $525 $531 $542 $552 $563 $575 $586 $598 $610 $622 $660 $673
Yearly RevPAB $0 $0 $6,302 $6,371 $6,498 $6,628 $6,761 $6,896 $7,034 $7,175 $7,318 $7,465 $7,922 $8,080
Additional Rent $129,600 $132,192 $134,836 $137,533 $140,283 $143,089 $145,951 $148,870 $151,847 $154,884 $157,982 $161,141 $171,004 $174,425
Parking Revenue $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Gross Rooms Revenue $3,762,000 $3,837,240 $3,913,985 $3,992,264 $4,072,110 $4,153,552 $4,236,623 $4,321,355 $4,407,783 $4,495,938 $4,585,857 $4,677,574 $4,963,879 $5,063,157
Total Gross Revenue $3,891,600 $3,969,432 $4,048,821 $4,129,797 $4,212,393 $4,296,641 $4,382,574 $4,470,225 $4,559,630 $4,650,822 $4,743,839 $4,838,715 $5,134,884 $5,237,581
Room Vacancy ($320,946) ($261,892) ($227,060) ($231,601) ($236,233) ($240,958) ($245,777) ($250,693) ($255,706) ($260,821) ($266,037) ($271,358) ($287,967) ($293,726)
Additional Rent Vacancy ($11,340) ($9,253) ($8,023) ($8,183) ($8,347) ($8,514) ($8,684) ($8,858) ($9,035) ($9,216) ($9,400) ($9,588) ($10,175) ($10,378)
Parking Vacancy $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Bad Debt Loss ($77,832) ($79,389) ($80,976) ($82,596) ($84,248) ($85,933) ($87,651) ($89,405) ($91,193) ($93,016) ($94,877) ($96,774) ($102,698) ($104,752)
EGR $3,481,482 $3,618,898 $3,732,761 $3,807,417 $3,883,565 $3,961,236 $4,040,461 $4,121,270 $4,203,696 $4,287,770 $4,373,525 $4,460,995 $4,734,044 $4,828,725

Page 18 of 47
Seattle Student Housing HIGHLY CONFIDENTIAL
Operating Expenses

Total Net Leasable Beds 585

Total Beds 600
Blended AMR $523
Total Months Occupied 0
Additional Monthly Rent POB $18
Parking POB 0
Blended Occupied Beds 0
Collection Loss & Bad Debt 2%
Occupancy 0%
EGR (Base Year) $3,481,482

ROOMS
% TOTAL % TOTAL
ITEM $ POB PAB EXPENSE EGR
Payroll Expenses $420,000 $23,333.33 $700 22.5% 12.1%
Services in Lieu of Rent $94,050 $5,225.00 $161 5.0% 2.7%
Marketing $49,200 $2,733.33 $82 2.6% 1.4%
Office & Administration $42,000 $2,333.33 $70 2.2% 1.2%
Communications $16,146 $897.00 $27 0.9% 0.5%
Electric & Gas (net) $7,200 $400.00 $12 0.4% 0.2%
Water & Sewer $3,366 $187.00 $6 0.2% 0.1%
Cable & Internet $4,032 $224.00 $7 0.2% 0.1%
Trash Removal $414 $23.00 $1 0.0% 0.0%
Travel $2,720 $151.11 $5 0.1% 0.1%
Repairs, Maintenance & Turnover (with additional snow) $178,600 $9,922.22 $298 9.6% 5.1%
Insurance $43,200 $2,400.00 $72 2.3% 1.2%
Other Taxes & Licenses $16,200 $900.00 $27 0.9% 0.5%
Transportation Costs - - - -- --
Real Estate Taxes $748,781 $41,598.94 $1,280 40.0% 21.5%
Residence Life $25,000 $1,388.89 $43 1.3% 0.7%
Professional Fees $10,000 $555.56 $17 0.5% 0.3%
Reserves $104,444 $5,802.47 $179 5.6% 3.0%
Management Fee $104,444 $5,802.47 $179 5.6% 3.0%
Other - - - -- --
Ground Lease - - - -- --
TOTAL EXPENSE $1,869,798 $103,877.66 $3,196 100.0% 53.7%
Less: Payroll ($420,000) ($23,333.33) ($718) (22.5%) (12.1%)
NON-PAYROLL EXPENSE $1,449,798 $80,544.33 $2,478 77.5% 41.6%

Page 19 of 47
Seattle Student Housing HIGHLY CONFIDENTIAL
Pro Forma - Years 1-5
$ in 000s Development OPENING STABILIZE STABILIZE
Key Operating Drivers Base Year Costs 12/31/2019 12/31/2020 12/31/2021 12/31/2022 12/31/2023
Segment Growth Date 12/31/18 Year 1 Year 2 Year 3 Year 4 Year 5
Bed Revenue 2.0% Total Net Leasable Beds 585 Total Net Leasable Beds 585 Total Net Leasable Beds 585 Total Net Leasable Beds 585 Total Net Leasable Beds 585 Total Net Leasable Beds 585
Expense 2.0% Total Beds 600
### Total Beds 600 Total Beds 600 Total Beds 600 Total Beds 600 Total Beds 600
Other Revenue 2.0% Blended AMR $523 Blended AMR $533 Blended AMR $544 Blended AMR $554 Blended AMR $566 Blended AMR $577
RE Taxes 2.0% Total Months Occupied 0.0 Total Months Occupied 0.0 Total Months Occupied 6.0 Total Months Occupied 12.0 Total Months Occupied 12.0 Total Months Occupied 12.0
Base Management Fees 0.0% Additional Monthly Rent POB $18 Additional Monthly Rent POB $18 Additional Monthly Rent POB $19 Additional Monthly Rent POB $19 Additional Monthly Rent POB $19 Additional Monthly Rent POB $20
FF&E Reserve 0.0% Parking POB $0 Parking POB $0 Parking POB $0 Parking POB $0 Parking POB $0 Parking POB $0
Blended Occupied Beds 0 Blended Occupied Beds 0 Blended Occupied Beds 580 Blended Occupied Beds 575 Blended Occupied Beds 575 Blended Occupied Beds 575
Collection Loss & Bad Debt 2.0% Collection Loss & Bad Debt 2.0% Collection Loss & Bad Debt 2.0% Collection Loss & Bad Debt 2.0% Collection Loss & Bad Debt 2.0% Collection Loss & Bad Debt 2.0%
Occupancy 0.0% Occupancy 0.0% Occupancy 96.6% Occupancy 95.8% Occupancy 95.8% Occupancy 95.8%

Amount PAB Amount Ratio PAB POB Amount Ratio PAB POB Amount Ratio PAB POB Amount Ratio PAB POB Amount Ratio PAB POB
REVENUES
Gross Rental Revenue 3,762 6,270 - 0.0% 0 0 1,957 96.7% 3,262 3,373 3,992 96.7% 6,654 6,941 4,072 96.7% 6,787 7,080 4,154 96.7% 6,923 7,222
Additional Rent 130 216 - 0.0% 0 0 67 3.3% 112 116 138 3.3% 229 239 140 3.3% 234 244 143 3.3% 238 249
Parking - 0 - 0.0% 0 0 - 0.0% 0 0 - 0.0% 0 0 - 0.0% 0 0 - 0.0% 0 0
Other - 0 - 0.0% 0 0 - 0.0% 0 0 - 0.0% 0 0 - 0.0% 0 0 - 0.0% 0 0
TOTAL 3,892 6,486 - 0.0% 0 0 2,024 100.0% 3,374 3,490 4,130 100.0% 6,883 7,181 4,212 100.0% 7,021 7,324 4,297 100.0% 7,161 7,471

Loss Factors
Rooms Vacancy 321 535 - 0.0% 0 0 65 3.3% 108 112 165 4.1% 276 288 169 4.1% 281 293 172 4.1% 287 299
Additional Rent Vacancy 11 19 - 0.0% 0 0 2 3.3% 4 4 6 4.1% 9 10 6 4.1% 10 10 6 4.1% 10 10
Parking Vacancy - 0 - 0.0% 0 0 - 0.0% 0 0 - 0.0% 0 0 - 0.0% 0 0 - 0.0% 0 0
Collection Loss & Bad Debt 78 130 - 0.0% 0 0 40 2.0% 67 70 83 2.0% 138 144 84 2.0% 140 146 86 2.0% 143 149
TOTAL 410 684 - 0.0% 0 0 108 5.3% 179 185 254 6.1% 423 441 259 6.1% 431 450 264 6.1% 440 459

Effective Gross Revenue 3,481 5,951 - 0.0% 0 0 1,917 94.7% 3,277 3,304 3,876 93.9% 6,626 6,739 3,954 93.9% 6,758 6,874 4,033 93.9% 6,893 7,012

EXPENSES
Payroll 420 700 - 0.0% 0 0 218 10.8% 364 377 446 10.8% 743 775 455 10.8% 758 790 464 10.8% 773 806
Live-In Management 94 157 - 0.0% 0 0 49 2.4% 82 84 100 2.4% 166 174 102 2.4% 170 177 104 2.4% 173 181
Marketing 74 124 - 0.0% 0 0 39 1.9% 64 67 79 1.9% 131 137 80 1.9% 134 140 82 1.9% 137 142
Administrative & General 55 91 - 0.0% 0 0 28 1.4% 47 49 58 1.4% 97 101 59 1.4% 99 103 60 1.4% 101 105
IT 20 34 - 0.0% 0 0 10 0.5% 17 18 21 0.5% 36 37 22 0.5% 36 38 22 0.5% 37 39
Utilities 11 18 - 0.0% 0 0 5 0.3% 9 9 11 0.3% 19 19 11 0.3% 19 20 12 0.3% 19 20
Maintenance 179 298 - 0.0% 0 0 93 4.6% 155 161 190 4.6% 317 330 194 4.6% 323 337 198 4.6% 329 344
TOTAL 853 1,421 - 0.0% 0 0 444 21.9% 739 765 905 21.9% 1,508 1,573 923 21.9% 1,538 1,605 941 21.9% 1,569 1,637

GROSS OPERATING PROFIT 2,629 4,381 - 0.0% 0 0 1,473 72.8% 2,455 2,540 2,971 71.9% 4,952 5,166 3,031 71.9% 5,051 5,269 3,091 71.9% 5,152 5,375

FIXED EXPENSES
Insurance 43 72 - 0.0% 0 0 22 1.1% 37 39 46 1.1% 76 80 47 1.1% 78 81 48 1.1% 79 83
Real Estate Taxes 765 1,275 - 0.0% 0 0 398 19.7% 663 686 812 19.7% 1,353 1,411 828 19.7% 1,380 1,440 845 19.7% 1,408 1,469
FF&E reserve 104 174 - 0.0% 0 0 52 2.6% 87 90 104 2.5% 174 182 104 2.5% 174 182 104 2.4% 174 182
Management Fee 104 174 - 0.0% 0 0 52 2.6% 87 90 104 2.5% 174 182 104 2.5% 174 182 104 2.4% 174 182
Other - 0 - 0.0% 0 0 - 0.0% 0 0 - 0.0% 0 0 - 0.0% 0 0 - 0.0% 0 0
Ground Rent - 0 - 0.0% 0 0 - 0.0% 0 0 - 0.0% 0 0 - 0.0% 0 0 - 0.0% 0 0
TOTAL 1,017 1,695 - 0.0% 0 0 525 25.9% 875 905 1,067 25.8% 1,778 1,854 1,084 25.7% 1,806 1,884 1,101 25.6% 1,835 1,915

NET OPERATING INCOME 1,612 2,686 - 0.0% 0 0 948 46.8% 1,581 1,635 1,905 46.1% 3,174 3,312 1,947 46.2% 3,245 3,385 1,990 46.3% 3,317 3,460
FEE NOI 1,612 - 948 1,905 1,947 1,990
EBITDA 2,377 3,961 - 0.0% 0 0 1,001 49.4% 1,668 1,725 2,009 48.6% 3,348 3,493 2,051 48.7% 3,419 3,567 2,094 48.7% 3,491 3,642

Notes
(1) Assumes Franchise Royalty Fee ramp over 1 calendar periods.
(2) Assumes FF&E ramp over 1 calendar periods.

Page 20 of 47
Seattle Student Housing HIGHLY CONFIDENTIAL
Pro Forma - Years 6-10
$ in 000s
12/31/2024 12/31/2025 12/31/2026 12/31/2027 12/31/2028
Year 6 Year 7 Year 8 Year 9 Year 10
Total Net Leasable Beds 585 Total Net Leasable Beds 585 Total Net Leasable Beds 585 Total Net Leasable Beds 585 Total Net Leasable Beds 585
Total Beds 600 Total Beds 600 Total Beds 600 Total Beds 600 Total Beds 600
Blended AMR $588 Blended AMR $600 Blended AMR $612 Blended AMR $624 Blended AMR $637
Total Months Occupied 12.0 Total Months Occupied 12.0 Total Months Occupied 12.0 Total Months Occupied 12.0 Total Months Occupied 12.0
Additional Monthly Rent POB $20 Additional Monthly Rent POB $21 Additional Monthly Rent POB $21 Additional Monthly Rent POB $22 Additional Monthly Rent POB $22
Parking POB $0 Parking POB $0 Parking POB $0 Parking POB $0 Parking POB $0
Blended Occupied Beds 575 Blended Occupied Beds 575 Blended Occupied Beds 575 Blended Occupied Beds 575 Blended Occupied Beds 575
Collection Loss & Bad Debt 2.0% Collection Loss & Bad Debt 2.0% Collection Loss & Bad Debt 2.0% Collection Loss & Bad Debt 2.0% Collection Loss & Bad Debt 2.0%
Occupancy 95.8% Occupancy 95.8% Occupancy 95.8% Occupancy 95.8% Occupancy 95.8%

Amount Ratio PAB POB Amount Ratio PAB POB Amount Ratio PAB POB Amount Ratio PAB POB Amount Ratio PAB POB
REVENUES
Gross Rental Revenue 4,237 96.7% 7,061 7,366 4,321 96.7% 7,202 7,514 4,408 96.7% 7,346 7,664 4,496 96.7% 7,493 7,817 4,586 96.7% 7,643 7,973
Additional Rent 146 3.3% 243 254 149 3.3% 248 259 152 3.3% 253 264 155 3.3% 258 269 158 3.3% 263 275
Parking - 0.0% 0 0 - 0.0% 0 0 - 0.0% 0 0 - 0.0% 0 0 - 0.0% 0 0
Other - 0.0% 0 0 - 0.0% 0 0 - 0.0% 0 0 - 0.0% 0 0 - 0.0% 0 0
TOTAL 4,383 100.0% 7,304 7,620 4,470 100.0% 7,450 7,772 4,560 100.0% 7,599 7,928 4,651 100.0% 7,751 8,086 4,744 100.0% 7,906 8,248

DEPARTMENTAL EXPENSES
Rooms Vacancy 176 4.1% 293 305 179 4.1% 298 311 183 4.1% 304 318 186 4.1% 311 324 190 4.1% 317 330
Additional Rent Vacancy 6 4.1% 10 11 6 4.1% 10 11 6 4.1% 10 11 6 4.1% 11 11 7 4.1% 11 11
Parking Vacancy - 0.0% 0 0 - 0.0% 0 0 - 0.0% 0 0 - 0.0% 0 0 - 0.0% 0 0
Collection Loss & Bad Debt 88 2.0% 146 152 89 2.0% 149 155 91 2.0% 152 159 93 2.0% 155 162 95 2.0% 158 165
TOTAL 269 6.1% 449 468 275 6.1% 458 478 280 6.1% 467 487 286 6.1% 476 497 291 6.1% 486 507

GROSS OPERATING INCOME 4,113 93.9% 7,031 7,152 4,196 93.9% 7,172 7,295 4,279 93.9% 7,315 7,441 4,365 93.9% 7,462 7,590 4,452 93.9% 7,611 7,741

Payroll 473 10.8% 788 822 482 10.8% 804 839 492 10.8% 820 856 502 10.8% 837 873 512 10.8% 853 890
Live-In Management 106 2.4% 177 184 108 2.4% 180 188 110 2.4% 184 192 112 2.4% 187 195 115 2.4% 191 199
Marketing 84 1.9% 139 145 85 1.9% 142 148 87 1.9% 145 151 89 1.9% 148 154 90 1.9% 151 157
Administrative & General 62 1.4% 103 107 63 1.4% 105 109 64 1.4% 107 111 65 1.4% 109 114 67 1.4% 111 116
IT 23 0.5% 38 40 23 0.5% 39 40 24 0.5% 39 41 24 0.5% 40 42 25 0.5% 41 43
Utilities 12 0.3% 20 21 12 0.3% 20 21 12 0.3% 21 22 13 0.3% 21 22 13 0.3% 21 22
Franchise Royalty Fee (1) 202 4.6% 336 351 206 4.6% 343 358 210 4.6% 350 365 214 4.6% 357 372 218 4.6% 364 379
TOTAL 960 21.9% 1,601 1,670 980 21.9% 1,633 1,703 999 21.9% 1,665 1,737 1,019 21.9% 1,698 1,772 1,039 21.9% 1,732 1,807

GROSS OPERATING PROFIT 3,153 71.9% 5,255 5,482 3,216 71.9% 5,360 5,592 3,280 71.9% 5,467 5,704 3,346 71.9% 5,577 5,818 3,413 71.9% 5,688 5,934

FIXED EXPENSES
Insurance 49 1.1% 81 85 50 1.1% 83 86 51 1.1% 84 88 52 1.1% 86 90 53 1.1% 88 92
FF&E reserve (2) 861 19.7% 1,436 1,498 879 19.7% 1,465 1,528 896 19.7% 1,494 1,558 914 19.7% 1,524 1,590 933 19.7% 1,554 1,621
FF&E reserve 104 2.4% 174 182 104 2.3% 174 182 104 2.3% 174 182 104 2.2% 174 182 104 2.2% 174 182
Management Fee 104 2.4% 174 182 104 2.3% 174 182 104 2.3% 174 182 104 2.2% 174 182 104 2.2% 174 182
Other - 0.0% 0 0 - 0.0% 0 0 - 0.0% 0 0 - 0.0% 0 0 - 0.0% 0 0
Ground Rent - 0.0% 0 0 - 0.0% 0 0 - 0.0% 0 0 - 0.0% 0 0 - 0.0% 0 0
TOTAL 1,119 25.5% 1,865 1,946 1,137 25.4% 1,895 1,977 1,156 25.3% 1,926 2,010 1,175 25.3% 1,958 2,043 1,194 25.2% 1,990 2,076

NET OPERATING INCOME 2,034 46.4% 3,390 3,537 2,079 46.5% 3,465 3,614 2,125 46.6% 3,541 3,694 2,171 46.7% 3,619 3,775 2,219 46.8% 3,698 3,858
FEE NOI 2,034 2,079 2,125 2,171 2,219
EBITDA 2,138 48.8% 3,564 3,718 2,183 48.8% 3,639 3,796 2,229 48.9% 3,715 3,876 2,276 48.9% 3,793 3,957 2,323 49.0% 3,872 4,040

Notes
(1) Assumes Franchise Royalty Fee ramp over 1 calendar periods.
(2) Assumes FF&E ramp over 1 calendar periods.

Page 21 of 47
Seattle Student Housing HIGHLY CONFIDENTIAL
Preliminary Valuation Analysis
CASH FLOW SUMMARY

UNLEVERED CASH FLOW SUMMARY TOTAL

Acquisition Year 1 Year 2 Year 3 Year 4
10/31/18 10/31/19 10/31/20 10/31/21 10/31/22
Purchase Price (17,500) - - - - (17,500)
Unlevered Development Capital - - - - - -
Working Capital Reserve - - - - - -
Legal (150) - - - - (150)
Due Diligence (28) - - - - (28)
Title Insurance (53) - - - - (53)
NOI - 790 1,745 1,940 6,458
Release of Working Capital - - - - -
Gross Exit Proceeds - - - - 33,231
Disposition Costs - - - - (997)
Unlevered Cash Flows ($17,730) - $790 $1,745 $1,940 $20,962
Capital Balance ($17,730) ($17,730) ($16,940) ($15,194) ($13,255)
Recurring Cash Flows - - $790 $1,745 $1,940
Cash-on-Cash Yield - 4.5% 9.8% 10.9%

UNLEVERED RETURNS SUMMARY

IRR 17.8%
Peak Capital $17,730
Nominal Profits $20,962
Multiple of Money 2.18x

LEVERED CASH FLOW SUMMARY TOTAL

Acquisition Year 1 Year 2 Year 3 Year 4
10/31/18 10/31/19 10/31/20 10/31/21 10/31/22
Purchase Price (17,500) - - - - (17,500)
Unlevered Development Capital - - - - - -
Working Capital Reserve - - - - - -
Construction Interest Reserve - - - - - -
Operating Interest Reserve - - - - - -
Legal (150) - - - - (150)
Due Diligence (28) - - - - (28)
Title Insurance (53) - - - - (53)
Mortgage Recording Tax - - - - - -
Finance Fees - - - - - -
New Mortgage Debt 12,112 589 409 - - 13,109
New Mezzanine Debt - Err:509 - - - Err:509
NOI - 790 1,745 1,940 6,458
New Mortgage Debt Service (589) (615) (623) (623) (3,072)
New Mezzanine Debt Service - - - - -
Operating Interest Reserve Draw - - - - -
Release of Operating Interest Reserve - - - - -
Release of Working Capital - - - - -
Net Refinancing Impact - - - - -
Exit Debt Balance - - - - (13,109)
Gross Exit Proceeds - - - - 33,231
Disposition Costs - - - - (997)
Levered Cash Flows ($5,618) Err:509 $584 $1,123 $1,317 Err:509
Capital Balance ($5,618) Err:509 Err:509 Err:509 Err:509
Recurring Cash Flows - Err:509 $584 $1,123 $1,317
Cash-on-Cash Yield Err:509 10.4% 20.0% 23.4%

LEVERED RETURNS SUMMARY

IRR Err:504
Peak Equity $5,618
Nominal Profits Err:509
Multiple of Money Err:509
Levered Payback Period Err:509
Page 22 of 47
Seattle Student Housing HIGHLY CONFIDENTIAL
Preliminary Valuation Analysis
CASH FLOW SUMMARY
2019 2020 2021 2022

DEBT SUMMARY
Acquisition Year 1 Year 2 Year 3 Year 4
10/31/18 10/31/19 10/31/20 10/31/21 10/31/22
MORTGAGE DEBT:
Beginning Balance 12,112 12,701 13,109 13,109
Draw 12,112 589 409 - -
Operating Interest - 206 623 623
Construction Interest 589 409 - -
Amortization - - - -
Ending Balance $12,112 $12,701 $13,109 $13,109 $13,109
Refinancing Impact:
Repaid Balance - - - - -
Gross Proceeds - - - - -
Gross Impact - - - - -
Financing Fees - - - - -
Net Impact - - - - -

MEZZANINE DEBT:
Beginning Balance - - - -
Interest - - - -
Amortization - - - -
Ending Balance - - - - -

TOTAL DEBT BALANCE

Beginning Balance 12,112 12,701 13,109 13,109
Interest 589 615 623 623
Amortization - - - -
Ending Balance $12,112 $12,701 $13,109 $13,109 $13,109
Blended Rate 4.75% 4.76% 4.75% 4.75%
LTC 67.8% 70.0% 70.0% 70.0%

TOTAL LEVERAGE IMPACT

New Mortgage Debt 12,112 589 409 - -
New Mezzanine Debt - Err:509 - - -
Operating Interest Reserve - - - - -
Mortgage Recording Tax - - - - -
Finance Fees - - - - -
Net Refinancing Impact - - - - -
New Mortgage Debt Service - (589) (615) (623) (623)
New Mezzanine Debt Service - - - - -
Operating Interest Reserve Draw - - - - -
Exit Debt Balance - - - - -
TOTAL LEVERAGE IMPACT $12,112 Err:509 ($206) ($623) ($623)
CASH FLOW TO LENDER $12,112 Err:509 ($206) ($623) ($623)

BLENDED COST OF CAPITAL Err:504

BLENDED YIELD TO LENDERS Err:504

Rate Summary:
Prime 4.00% 4.00% 4.00% 4.00%
Mortgage Debt Interest Rate 4.75% 4.75% 4.75% 4.75%
Mortgage Debt Amortization 0.00% 0.00% 0.00% 0.00%
Mezzanine Debt Interest Rate 8.00% 8.00% 8.00% 8.00%
Mezzanine Debt Amortization 0.00% 0.00% 0.00% 0.00%
Page 23 of 47
Seattle Student Housing
Promoted Returns Analysis

PROMOTE ASSUMPTIONS
Assumed Exit Date
PARTNERSHIP / PROMOTE STRUCTURING
RAM Capital Contribution
HH Capital Contribution

Comp.
Comp. Periods
Hurdle 1 Annually 1
Hurdle 2 Annually 1
Hurdle 3 Annually 1
Hurdle 4 Annually 1
Hurdle 5 Annually 1

RETURNS SUMMARY

IRR
Peak Equity Capital
Multiple of Capital

Page 24 of 47
Nominal Profits

RAM RETURNS SUMMARY

Return On Invested Capital
Promote
Total Profits

Page 25 of 47
 10/31/28
NG
0.0%
100.0%

Comp.
Test Hurdle Promote
18.0% 18.0% 20.0%
18.0% 18.0% 20.0%
18.0% 18.0% 20.0%
18.0% 18.0% 20.0%
18.0% 18.0% 20.0%

PROMOTED
DEAL HH RAM
Err:504 Err:504 0.0%
Err:509 Err:509 Err:509
Err:509 Err:509 0.00x

Page 26 of 47
Err:509 Err:509 Err:509

Err:509 Err:509
Err:509
Err:509

Page 27 of 47
 0
0
Operating Pro Forma

Academic Year Commencing | 42230.833333 42596 42961 43326 43691 44057

0
0

Unit & Bed Inventory 1 2 3 4 5 6

1-Bedroom | 60 60 60 60 60 60

2-Bedroom | 60 60 60 60 60 60

3-Bedroom | 60 60 60 60 60 60

4-Bedroom | 60 60 60 60 60 60

Total Units | 240 240 240 240 240 240

1-Bedroom | 60 60 60 60 60 60

2-Bedroom | 120 120 120 120 120 120

3-Bedroom | 180 180 180 180 180 180

4-Bedroom | 240 240 240 240 240 240

Total Beds | 600 600 600 600 600 600

less management beds | 15 15 15 15 15 15

Net Leasable Beds | 585 585 585 585 585 585

Projected Per Bed Rent

1-Bedroom | 600 612 624 637 649 662

2-Bedroom | $575 $587 $598 $610 $622 $635

3-Bedroom | $525 $536 $546 $557 $568 $580

4-Bedroom | 500 510 520 531 541 552

Monthly Gross Rental Revenue

1-Bedroom | 36,000 36,720 37,454 38,203 38,968 39,747

2-Bedroom | 69,000 70,380 71,788 73,223 74,688 76,182

3-Bedroom | 94,500 96,390 98,318 100,284 102,290 104,336

4-Bedroom | 120,000 122,400 124,848 127,345 129,892 132,490

Total Monthly Gross Revenue | $319,500 $325,890 $332,408 $339,056 $345,837 $352,754

Average Gross Revenue Per Available Bed | $533 $543 $554 $565 $576 $588

Average Rent Growth | 2.0% 2.0% 2.0% 2.0% 2.0%

Underwritten Vacancy Rate | 15.0% 7.5% 5.0% 5.0% 5.0% 5.0%

1 2 3 4 5 6

1-Bedroom | 432,000 440,640 449,453 458,442 467,611 476,963

2-Bedroom | 828,000 844,560 861,451 878,680 896,254 914,179

3-Bedroom | 1,134,000 1,156,680 1,179,814 1,203,410 1,227,478 1,252,028

4-Bedroom | 1,440,000 1,468,800 1,498,176 1,528,140 1,558,702 1,589,876

Gross Potential Revenue $3,834,000 $3,910,680 $3,988,894 $4,068,671 $4,150,045 $4,233,046

other revenue per bed…

$214 $218 $223 $227 $232 $236
add other revenue 128,400 130,968 133,587 136,259 138,984 141,764

Total Gross Revenue $3,962,400 $4,041,648 $4,122,481 $4,204,931 $4,289,029 $4,374,810

less vacancy 579,757 295,676 200,986 205,005 209,105 213,287

Net Revenue $3,382,643 $3,745,972 $3,921,495 $3,999,925 $4,079,924 $4,161,522

less collection loss (bad debts) 1.5% 50,740 56,190 58,822 59,999 61,199 62,423

Effective Gross Revenue (EGR) $3,331,903 $3,689,782 $3,862,673 $3,939,926 $4,018,725 $4,099,100

occupied beds |
512 556 571 571 571 571
RevPOB |
$542 $553 $564 $575 $587 $598
Operating Expenses

Payroll Expenses 239,202 243,986 248,866 253,843 258,920 264,098

Services in Lieu of Rent 94,500 96,390 98,318 100,284 102,290 104,336

Marketing 49,200 50,184 51,188 52,211 53,256 54,321

Office & Administration 42,279 43,125 43,987 44,867 45,764 46,679

Communications 16,146 16,469 16,798 17,134 17,477 17,826

Electric & Gas (net) 240,000 244,800 249,696 254,690 259,784 264,979

Water & Sewer 112,200 114,444 116,733 119,068 121,449 123,878

Cable & Internet 134,400 137,088 139,830 142,626 145,479 148,388

Trash Removal 13,800 14,076 14,358 14,645 14,938 15,236

Travel 2,720 2,774 2,830 2,886 2,944 3,003

Repairs, Maintenance & Turnover (with additional snow) 178,600 182,172 185,815 189,532 193,322 197,189

Insurance 43,200 44,064 44,945 45,844 46,761 47,696

Other Taxes & Licenses 16,200 16,524 16,854 17,192 17,535 17,886

Transportation Costs - - - - - -

Real Estate Taxes 10,000 10,000 10,000 10,000 10,000 10,000

Residence Life 24,231 24,716 25,210 25,714 26,228 26,753

Professional Fees 8,000 8,160 8,323 8,490 8,659 8,833

Management Fee (% of EGR) 3.0% 99,957 110,693 115,880 118,198 120,562 122,973

Ground Lease - - - - - -

Total Operating Expenses $1,324,635 $1,359,665 $1,389,631 $1,417,224 $1,445,368 $1,474,076

expenses per bed |

$2,208 $2,266 $2,316 $2,362 $2,409 $2,457
expense margin |
40% 37% 36% 36% 36% 36%
Reserves (per bed) $125 75,000 75,000 75,000 75,000 75,000

Total Operating Expenses & Reserves 1,324,635 1,434,665 1,464,631 1,492,224 1,520,368 1,549,076

Net Operating Income $2,007,268 $2,255,117 $2,398,042 $2,447,703 $2,498,357 $2,550,024

NOI margin |
60% 61% 62% 62% 62% 62%
Corporate Management Fee (% of NOI) 3.0% 60,218 67,654 71,941 73,431 74,951 76,501

Net Cash Flow from Operations $1,947,050 $2,187,464 $2,326,101 $2,374,272 $2,423,406 $2,473,523

NCF margin |
58% 59% 60% 60% 60% 60%

Debt Service Coverage (Amortizing) | 27,062.64 30,404.22 32,331.17 33,000.72 33,683.65 34,380.24

Debt Yield | 194705.02% 218746.38% 232610.06% 237427.16% 242340.60% 247352.31%

Value Estimate | $28,845,188 $32,406,871 $34,460,749 $35,174,394 $35,902,311 $36,644,787

Loan To Value | 0% 0% 0% 0% 0% 0%

NOI After Fees Before CAPEX | $1,947,050 $2,262,464 $2,401,101 $2,449,272 $2,498,406 $2,548,523

NOI Margin Before CAPEX | 58% 61% 62% 62% 62% 62%

Return on Cost (pre capex) | 194705.0% 226246.4% 240110.1% 244927.2% 249840.6% 254852.3%

Total Cost | $1,000

Loan Assumptions
Loan Amount | $1,000 Amortization | 30 years

Equity | $0 Rate | 6.00%

Loan Constant | 7.19%

Annual Payment | $72

 OUTPUT Return On Cost

Year 1 Year 2 Year 3 Year 4 Year 5

Operations Commence: ### 194705.02% 226246.38% 240110.06% 244927.16% 249840.60%

Total 1-Bedroom 2-Bedroom 3-Bedroom 4-Bedroom

Units | 240 60 60 60 60

Beds | 600 60 120 180 240

Financing Assumptions
Interest Rate 6.00%

Amortization 30 years

Cap Rate 6.75%

Rent Assumptions

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

1-Bedroom $600

Escalations 2.00% 2.00% 2.00% 2.00% 2.00%

2-Bedroom $575

Escalations 2.00% 2.00% 2.00% 2.00% 2.00%

3-Bedroom $525

Escalations 2.00% 2.00% 2.00% 2.00% 2.00%

4-Bedroom $500

Escalations 2.00% 2.00% 2.00% 2.00% 2.00%

Operating Assumptions Vacancy Assumptions ROC Output Occ.

Management Beds 15 1 15.0% 194705.02% 85.0%

Collection Loss & Bad Debts 1.50% of EGR 2 7.5% 226246.38% 92.5%

Other Revenue - First Year $214 per bed 3 5.0% 240110.06% 95.0%

4 5.0% 244927.16% 95.0%

5 5.0% 249840.60% 95.0%

6 5.0% 0.00% 95.0%

Operating Expenses Assumptions Yr-1 Output

Expense Escalations
Payroll Expenses $239,202 per project $239,202 $398.67 2 2.00%

Services in Lieu of Rent $94,500 $0.00 3 2.00%

Marketing $82 per bed $49,200 $0.14 4 2.00%

Office & Administration $42,279 per project $42,279 $70.47 5 2.00%

Communications $16,146 per project $16,146 $26.91 6 2.00%

Electric & Gas (net) $400 $400 per bed $240,000 $0.67

Water & Sewer $187 $187 per bed $112,200 $0.31

Cable & Internet $224 per bed $134,400 $0.37

Trash Removal $23 per bed $13,800 $0.04

Travel $2,720 per project $2,720 $4.53 4.5333333333

Repairs, Maintenance & Turnover (with additional snow) $298 per bed $178,600 $0.50 297.6666666667

Insurance $72 per bed $43,200 $0.12 72

Other Taxes & Licenses $27 per bed $16,200 $0.05

Transportation Costs $0 per project $0 $0.00

Real Estate Taxes CHOOSE ► per unit $10,000 $16.67

Residence Life $24,231 per project $24,231 $40.39

Professional Fees $8,000 project (JV only) $8,000 $13.33

Management Fee (% of EGR) 3.00% of EGR (JV only) $99,957 $0.00

Ground Lease $0 $0.00

Reserves $125 per bed $75,000 $0.21

Management Fee (% of NOI) 3.00% of EGR (JV only) $60,218 $0.00

Seattle Student Housing HIGHLY CONFIDENTIAL
Comp P&L - Airport (TTM June 2015)

Keys 111
Available Rooms 40,515
Occupied Rooms 33,534
Occupancy 82.8%
Average Rate $103.12
RevPAR $85.35

Rooms Revenue $3,457,935

Total Revenue $3,508,042

ROOMS
% ROOMS % TOTAL
ITEM $ POR PAR REV REV
Rooms Payroll & Related $436,579 $13.02 $3,933 12.6% 12.4%
Cleaning Supplies $18,956 $0.57 $171 0.5% 0.5%
Guest Supplies $31,924 $0.95 $288 0.9% 0.9%
Laundry Supplies $7,673 $0.23 $69 0.2% 0.2%
Office Supplies - - - -- --
Newspapers $1,406 $0.04 $13 0.0% 0.0%
Employee Expense & Training - - - -- --
Travel & Related - - - -- --
Uniforms $8,963 $0.27 $81 0.3% 0.3%
Linen Cleaning & Purchases $4,385 $0.13 $40 0.1% 0.1%
Travel Agent Commission $82,503 $2.46 $743 2.4% 2.4%
Reservation Fees $3,000 $0.09 $27 0.1% 0.1%
Walked Guest - - - -- --
Breakfast & Other Comp Services $100,211 $2.99 $903 2.9% 2.9%
Cable Costs $5,836 $0.17 $53 0.2% 0.2%
Non-Capitalized Equipment - - - -- --
Other Rooms Expense $4,488 $0.13 $40 0.1% 0.1%
TOTAL - ROOMS $705,922 $21.05 $6,360 20.4% 20.1%
TOTAL - ROOMS (Ex. Reservations & TAC's) $620,419 $18.50 $5,589 17.9% 17.7%
Less: Payroll ($436,579) ($13.02) ($3,933) (12.6%) (12.4%)
NON-PAYROLL EXPENSE $183,840 $5.48 $1,656 5.3% 5.2%

A&G
% ROOMS % TOTAL
ITEM $ POR PAR REV REV
A&G Payroll & Related - - - -- --
Office Supplies - - - -- --
Human Resources - - - -- --
Travel - - - -- --
Uniforms - - - -- --
Information Technology - - - -- --
Customer Relations - - - -- --
Centralized Accounting - - - -- --
Payroll Processing - - - -- --
Professional Fees - - - -- --
Credit Card & Collection - - - -- --
Bad Debt - - - -- --
Permits & License Fees - - - -- --
Non-Capitalized Equipment - - - -- --
Security - - - -- --
Other A&G Expense - - - -- --
TOTAL - A&G - - - -- --
TOTAL - ROOMS (Ex. Credit Card Commissions) - - - -- --
Less: Payroll - - - -- --
NON-PAYROLL EXPENSE - - - -- --

Page 30 of 47
Seattle Student Housing HIGHLY CONFIDENTIAL
Comp P&L - Lexington Park (2015)

S&M
% ROOMS % TOTAL
ITEM $ POR PAR REV REV
Sales & Marketing Payroll & Related - - - -- --
Office Supplies - - - -- --
Hilton Honors Guest Fees - - - -- --
Franchise Marketing Fee - - - -- --
Franchise Royalty Fee - - - -- --
Employee Expense - - - -- --
Travel - - - -- --
Customer Relations - - - -- --
Due & Subscriptions - - - -- --
Marketing & Advertising - - - -- --
Promotions - - - -- --
Franchisor Promotions - - - -- --
Other Sales & Marketing Expense - - - -- --
TOTAL - S&M - - - -- --
TOTAL - S&M (ex. Franchise Costs) - - - -- --
Less: Payroll - - - -- --
NON-PAYROLL EXPENSE - - - -- --

R&M
% ROOMS % TOTAL
ITEM $ POR PAR REV REV
R&M Payroll & Related - - - -- --
Building - - - -- --
Operating Supplies - - - -- --
Employee Expense - - - -- --
Uniforms - - - -- --
Electrical & Mechanical - - - -- --
Plumbing - - - -- --
Painting - - - -- --
HVAC - - - -- --
Pool Supplies & Service - - - -- --
General Repairs & Maintenance - - - -- --
Music & TV System Service - - - -- --
Fire Alarm Service - - - -- --
Elevator Service - - - -- --
Office Equipment Contract - - - -- --
Pest Control - - - -- --
Waste Removal $3,893 $0.12 $35 0.1% 0.1%
Landscape Maintenance - - - -- --
Parking Lot Maintenance - - - -- --
Snow Removal - - - -- --
Vehicle Repairs & Maintenance - - - -- --
Contract Cleaning - - - -- --
Lighting Costs - - - -- --
Non-Capitalized Equipment - - - -- --
Other Repairs & Maintenance - - - -- --
TOTAL - R&M $3,893 $0.12 $35 0.1% 0.1%
Less: Payroll - - - -- --
NON-PAYROLL EXPENSE $3,893 $0.12 $35 0.1% 0.1%

UTILITIES
% ROOMS % TOTAL
ITEM $ POR PAR REV REV
Electric $86,141 $2.57 $776 2.5% 2.5%
Gas $11,551 $0.34 $104 0.3% 0.3%
Water & Sewer $25,622 $0.76 $231 0.7% 0.7%
TOTAL - UTILITIES $123,314 $3.68 $1,111 3.6% 3.5%

Page 31 of 47
Seattle Student Housing HIGHLY CONFIDENTIAL
Renovation Cash Flows

RENOVATION PERIOD CASH FLOWS

Budget Non-Upfront Fund Upfront Fund Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Item Outflow Funding Frequency Begin Term End Draw 10/31/18 11/30/18 12/31/18 1/31/19 2/28/19 3/31/19 4/30/19 5/31/19 6/30/19 7/31/19 8/31/19 9/30/19 10/31/19
ACQUISITION:
Property Acquisition $17,500,000 - 20 months 0 months 1 months 1 months - $17,500,000 - - - - - - - - - - - -
Due Diligence / Legal / Working Capital Reserve $230,000 - 20 months 0 months 1 months 1 months - $230,000 - - - - - - - - - - - -

HARD COSTS:
Hard Costs - - 1 months 8 months 6 months 14 months - - - - - - - - - - - - - -

FF&E / OSE:
FF&E/OSE/Tech/Lobby - - 1 months 14 months 6 months 20 months - - - - - - - - - - - - - -
Pre-Opening Costs - - 1 months 14 months 6 months 20 months - - - - - - - - - - - - - -

SOFT COSTS:
Soft Costs - - 1 months 0 months 8 months 8 months - - - - - - - - - - - - - -
Development Fee - - 1 months 0 months 20 months 20 months - - - - - - - - - - - - - -

CONTINGENCY:
Contingency - - 1 months 0 months 20 months 20 months - - - - - - - - - - - - - -

FINANCING COSTS:
Mortgage Recording Tax - - 1 months 0 months 8 months 8 months - - - - - - - - - - - - - -
Mortgage Broker - - 1 months 0 months 8 months 8 months - - - - - - - - - - - - - -
Lender's points - - 1 months 0 months 8 months 8 months - - - - - - - - - - - - - -
Land RE Carry - - 1 months 0 months 20 months 20 months - - - - - - - - - - - - - -
Construction Interest $997,816 £997,816 1 months 0 months 20 months 20 months $49,891 - $48,037 $48,228 $48,419 $48,611 $48,804 $48,997 $49,192 $49,387 $49,583 $49,779 $49,977 $50,175
TOTAL CONSTRUCTION COST $18,727,816 $997,816 $17,730,000 $48,037 $48,228 $48,419 $48,611 $48,804 $48,997 $49,192 $49,387 $49,583 $49,779 $49,977 $50,175
Cumulative Construction Cost $17,730,000 $17,778,037 $17,826,265 $17,874,683 $17,923,294 $17,972,098 $18,021,095 $18,070,287 $18,119,674 $18,169,256 $18,219,035 $18,269,012 $18,319,187
- - - - - - - - - - - -

UNLEVERED CASH FLOWS (Ex. PP) - - - - - - - - - - - - - -

SOFT COSTS - - - - - - - - - - - - - -

FINANCING:
Total Construction Financing $13,109,472 $13,109,472 $13,109,472 $13,109,472 $13,109,472 $13,109,472 $13,109,472 $13,109,472 $13,109,472 $13,109,472 $13,109,472 $13,109,472 $13,109,472

Beginning Balance:
Unfunded Equity $5,618,345 - - - - - - - - - - - -
Drawn Balance - $12,111,655 $12,159,692 $12,207,920 $12,256,339 $12,304,949 $12,353,753 $12,402,750 $12,451,942 $12,501,329 $12,550,911 $12,600,690 $12,650,667
Undrawn Balance $13,109,472 $997,816 $949,779 $901,552 $853,133 $804,522 $755,718 $706,721 $657,530 $608,143 $558,560 $508,781 $458,805

Periodic Funding:
Equity Funding $5,618,345 - - - - - - - - - - - -
Construction Draw $12,111,655 $48,037 $48,228 $48,419 $48,611 $48,804 $48,997 $49,192 $49,387 $49,583 $49,779 $49,977 $50,175
Total Funding $17,730,000 $48,037 $48,228 $48,419 $48,611 $48,804 $48,997 $49,192 $49,387 $49,583 $49,779 $49,977 $50,175

Ending Balance:
Drawn $12,111,655 $12,159,692 $12,207,920 $12,256,339 $12,304,949 $12,353,753 $12,402,750 $12,451,942 $12,501,329 $12,550,911 $12,600,690 $12,650,667 $12,700,842
Funded Equity $5,618,345 $5,618,345 $5,618,345 $5,618,345 $5,618,345 $5,618,345 $5,618,345 $5,618,345 $5,618,345 $5,618,345 $5,618,345 $5,618,345 $5,618,345
Total Funding to Date $17,730,000 $17,778,037 $17,826,265 $17,874,683 $17,923,294 $17,972,098 $18,021,095 $18,070,287 $18,119,674 $18,169,256 $18,219,035 $18,269,012 $18,319,187
Undrawn $997,816 $949,779 $901,552 $853,133 $804,522 $755,718 $706,721 $657,530 $608,143 $558,560 $508,781 $458,805 $408,630
Unfunded Equity - - - - - - - - - - - - -
LTC 64.7% 64.9% 65.2% 65.4% 65.7% 66.0% 66.2% 66.5% 66.8% 67.0% 67.3% 67.6% 67.8%
Interest Expense:
Interest Expense - Drawn £48,037 £48,228 £48,419 £48,611 £48,804 £48,997 £49,192 £49,387 £49,583 £49,779 £49,977 £50,175
Interest Expense - Undrawn - - - - - - - - - - - -
Total Interest Expense £48,037 £48,228 £48,419 £48,611 £48,804 £48,997 £49,192 £49,387 £49,583 £49,779 £49,977 £50,175

Page 32 of 47
Seattle Student Housing HIGHLY CONFIDENTIAL
Renovation Cash Flows

RENOVATION PERIOD CASH FLOWS

Month 13 Month 14 Month 15 Month 16 Month 17 Month 18 Month 19 Month 20 Month 21 Month 22 Month 23 Month 24
Item 11/30/19 12/31/19 1/31/20 2/29/20 3/31/20 4/30/20 5/31/20 6/30/20 7/31/20 8/31/20 9/30/20 10/31/20
ACQUISITION:
Property Acquisition - - - - - - - - - - - -
Due Diligence / Legal / Working Capital Reserve - - - - - - - - - - - -

HARD COSTS:
Hard Costs - - - - - - - - - - - -

FF&E / OSE:
FF&E/OSE/Tech/Lobby - - - - - - - - - - - -
Pre-Opening Costs - - - - - - - - - - - -

SOFT COSTS:
Soft Costs - - - - - - - - - - - -
Development Fee - - - - - - - - - - - -

CONTINGENCY:
Contingency - - - - - - - - - - - -

FINANCING COSTS:
Mortgage Recording Tax - - - - - - - - - - - -
Mortgage Broker - - - - - - - - - - - -
Lender's points - - - - - - - - - - - -
Land RE Carry - - - - - - - - - - - -
Construction Interest $50,374 $50,574 $50,774 $50,976 $51,178 $51,381 $51,585 $51,789 - - - -
TOTAL CONSTRUCTION COST $50,374 $50,574 $50,774 $50,976 $51,178 $51,381 $51,585 $51,789 - - - -
Cumulative Construction Cost $18,369,561 $18,420,134 $18,470,909 $18,521,884 $18,573,062 $18,624,443 $18,676,027 $18,727,816 $18,727,816 $18,727,816 $18,727,816 $18,727,816
- - - - - - - - - - - -

UNLEVERED CASH FLOWS (Ex. PP) - - - - - - - - - - - -

SOFT COSTS - - - - - - - - - - - -

FINANCING:
Total Construction Financing $13,109,472 $13,109,472 $13,109,472 $13,109,472 $13,109,472 $13,109,472 $13,109,472 $13,109,472 $13,109,472 $13,109,472 $13,109,472 $13,109,472

Beginning Balance:
Unfunded Equity - - - - - - - - - - - -
Drawn Balance $12,700,842 $12,751,216 $12,801,789 $12,852,564 $12,903,539 $12,954,717 $13,006,098 $13,057,682 $13,109,472 $13,109,472 $13,109,472 $13,109,472
Undrawn Balance $408,630 $358,256 $307,682 $256,908 $205,932 $154,755 $103,374 $51,789 - - - -

Periodic Funding:
Equity Funding - - - - - - - - - - - -
Construction Draw $50,374 $50,574 $50,774 $50,976 $51,178 $51,381 $51,585 $51,789 - - - -
Total Funding $50,374 $50,574 $50,774 $50,976 $51,178 $51,381 $51,585 $51,789 - - - -

Ending Balance:
Drawn $12,751,216 $12,801,789 $12,852,564 $12,903,539 $12,954,717 $13,006,098 $13,057,682 $13,109,472 $13,109,472 $13,109,472 $13,109,472 $13,109,472
Funded Equity $5,618,345 $5,618,345 $5,618,345 $5,618,345 $5,618,345 $5,618,345 $5,618,345 $5,618,345 $5,618,345 $5,618,345 $5,618,345 $5,618,345
Total Funding to Date $18,369,561 $18,420,134 $18,470,909 $18,521,884 $18,573,062 $18,624,443 $18,676,027 $18,727,816 $18,727,816 $18,727,816 $18,727,816 $18,727,816
Undrawn $358,256 $307,682 $256,908 $205,932 $154,755 $103,374 $51,789 - - - - -
Unfunded Equity - - - - - - - - - - - -
LTC 68.1% 68.4% 68.6% 68.9% 69.2% 69.4% 69.7% 70.0% 70.0% 70.0% 70.0% 70.0%
Interest Expense:
Interest Expense - Drawn £50,374 £50,574 £50,774 £50,976 £51,178 £51,381 £51,585 £51,789 - - - -
Interest Expense - Undrawn - - - - - - - - - - - -
Total Interest Expense £50,374 £50,574 £50,774 £50,976 £51,178 £51,381 £51,585 £51,789 - - - -

Page 33 of 47
Seattle Student Housing
Preliminary Valuation Analysis
OTHER ASSUMPTIONS / DRIVERS

ASSET TITLE FEE

TYPE INTEREST TYPES
Limited Service Fee Simple %
Select Service Leasehold PER ROOM
Full Service $
Luxury

WORKING CAPITAL / OTHER ASSUMPTION

Per Key
% of RE Taxes & Insurance Funded
Working Capital Requirement
Title

BRANDING ASSUMPTIONS
FLAG BRAND ROOMS ROYALTY
EXECUTION: TYPE FEE
Err:509 Err:509 Err:509 Err:509

ROOMS ROYALTY
FLAG BRAND TYPE FEE
Motel 6 Accor % 4.0%
Studio 6 Accor % 5.0%
Best Western International Best Western International PER ROOM $485

Page 34 of 47
Boulders Inn & Suites Boulders Inn & Suites % -
Budget Host Budget Host International % $80
Country Inns & Suites by Carlson Carlson Hotels % 4.5%
Park Inn by Radisson Carlson Hotels % 4.5%
Radisson Hotels & Resorts Carlson Hotels % 5.0%
Centerstone Inn Centerstone $ $3,000
Ascend Collection Choice Hotels International % 4.0%
Cambria Suites Choice Hotels International % 5.0%
Clarion Choice Hotels International % 4.3%
Comfort Inn Choice Hotels International % 5.7%
Comfort Suites Choice Hotels International % 5.7%
Econo Lodge Choice Hotels International % 4.5%
MainStay Suites Choice Hotels International % 5.0%
Quality Inn Choice Hotels International % 4.7%
Rodeway Inn Choice Hotels International PER ROOM $372
Sleep Inn Choice Hotels International % 4.7%
Suburban Extended Stay Hotel Choice Hotels International % 5.0%
Cobblestone Inn; Hotels; Suites Cobblestone Inn % -
GuestHouse International Guesthouse International % 3.5%
Settle Inn & Suites Guesthouse International % 3.5%
Conrad Hotels & Resorts Hilton Worldwide % 5.0%
Doubletree Hilton Worldwide % 5.0%
Embassy Suites Hotels Hilton Worldwide % 5.0%
Hampton Inn Hilton Worldwide % 6.0%
Hilton Hilton Worldwide % 5.0%
Hilton Garden Inn Hilton Worldwide % 5.5%
Home2 Suites by Hilton Hilton Worldwide % 5.0%
Homewood Suites by Hilton Hilton Worldwide % 4.5%

Page 35 of 47
Waldorf-Astoria Collection Hilton Worldwide % 5.0%
Waldorf-Astoria Hotels & Resorts Hilton Worldwide % 5.0%
Downtowner Inns Hospitality International % 3.0%
Master Hosts Inns Hospitality International % 4.0%
Passport Inn Hospitality International % 3.0%
Red Carpet Inn Hospitality International % 3.5%
Scottish Inns Hospitality International % 3.0%
Hyatt Place Hyatt % 5.0%
Hyatt Regency Hyatt % 5.0%
Hyatt Summerfield Suites Hyatt % 5.0%
InnSuites Boutique Hotel Collection InnSuites Hotels PER ROOM $312
Candlewood Suites InterContinental Hotels Group % 5.0%
Crowne Plaza Hotels & Resorts InterContinental Hotels Group % 5.0%
Holiday Inn Express InterContinental Hotels Group % 6.0%
Holiday Inn Hotels & Resorts InterContinental Hotels Group % 5.0%
Hotel Indigo InterContinental Hotels Group % 5.0%
InterContinental Hotels & Resorts InterContinental Hotels Group % 5.0%
Staybridge Suites InterContinental Hotels Group % 5.0%
La Quinta Inns & Suites LQ Management % 4.5%
Courtyard by Marriott Marriott International % 5.0%
Fairfield Inn & Suites by Marriott Marriott International % 4.5%
Marriott Hotels & Resorts Marriott International % 6.0%
Renaissance Hotels & Resorts Marriott International 5.0%
Residence Inn by Marriott Marriott International % 5.5%
Springhill Suites by Marriott Marriott International % 5.0%
TownePlace Suites by Marriott Marriott International % 5.0%
AmericInn Northcott Hospitality % 5.0%
NYLO Hotels NYLO Hotels % 5.0%

Page 36 of 47
XP by NYLO NYLO Hotels % 5.0%
Parkside Hotels Parkside Hotels PER ROOM $150
Red Lion Hotels Red Lion Hotels % 4.0%
Red Roof Inn Red Roof Inns % 4.5%
Four Points by Sheraton Sheraton % 5.5%
Sheraton Hotels & Resorts Sheraton % 6.0%
Sonesta Hotels/Resorts/Cruises Sonesta International Hotels % 5.0%
Aloft Hotels Starwood Hotels & Resorts % 5.5%
Autograph Collection Starwood Hotels & Resorts % 5.0%
Element Hotels Starwood Hotels & Resorts % 5.5%
Le Meridien Hotels Starwood Hotels & Resorts % 5.0%
The Luxury Collection Starwood Hotels & Resorts % 5.0%
Westin Hotels and Resorts Starwood Hotels & Resorts % 7.0%
Value Place Value Place % 5.0%
America's Best Inns & Suites Vantage Hospitality Group % 4.0%
Americas Best Value Inn Vantage Hospitality Group PER ROOM $138
Budgetel Inn & Sutes Vantage Hospitality Group $ $485
Country Hearth Inns & Suites Vantage Hospitality Group % 4.0%
Lexington Collection Vantage Hospitality Group % 3.0%
Lexington Inn Vantage Hospitality Group % 3.0%
3 Palms Hotels & Resorts Vantage Hospitality Group PER ROOM $150
Vagabond Inns & Executive Vantage Hospitality Group % 3.3%
Select Inn Vista % 3.0%
Vista Inn Vista PER ROOM $204
Baymont Inn & Suites Wyndham Hotel Group % 5.0%
Days Inn Wyndham Hotel Group % 5.5%
Dream Wyndham Hotel Group % 5.0%
Hawthorn Suites by Wyndham Wyndham Hotel Group % 5.0%

Page 37 of 47
Howard Johnson Wyndham Hotel Group % 4.0%
Knights Inn Wyndham Hotel Group % 5.0%
Microtel Inns & Suites Wyndham Hotel Group % 6.0%
Night Wyndham Hotel Group % 5.0%
Ramada Wyndham Hotel Group % 4.0%
Super 8 Wyndham Hotel Group % 5.5%
Travelodge Wyndham Hotel Group % 4.5%
TRYP by Wyndham Wyndham Hotel Group % 5.0%
Wingate by Wyndham Wyndham Hotel Group % 4.5%
Wyndham Hotels and Resorts Wyndham Hotel Group % 5.0%
Independent Independent % -

Page 38 of 47
HER ASSUMPTIONS
$0.75
50.0%
$784
0.3%

UMPTIONS
F&B ROYALTY MARKETING FREQ. / RES.
TYPE FEE TYPE FEE TYPE FEE
Err:509 Err:509 Err:509 Err:509 Err:509 Err:509

F&B ROYALTY MARKETING FREQ. / RES.

TYPE FEE TYPE FEE TYPE FEE
% - % 3.5% % -
% - % 2.0% % -
% - PER ROOM $90 $ $10,000

Page 39 of 47
% - - % -
% - % - % -
% - % 2.5% % 1.3%
% - % 2.0% % 1.3%
% - % 2.0% % 2.0%
% - PER ROOM $186 % -
% - % 3.0% % -
% - % 4.0% % 1.8%
% - % 3.3% % 1.3%
% - % 3.9% % 1.8%
% - % 3.9% % 1.8%
% - % 3.5% % -
% - % 2.5% % -
% - % 2.1% % 1.8%
% - PER ROOM $228 PER ROOM $60
% - % 2.1% % 1.8%
% - % 2.5% % -
% - % - % -
% - 1.0% % 0.8%
% - % 1.0% % -
% - % 4.0% % -
% - % 4.0% % -
% - % 4.0% % -
% - % 4.0% % -
% 3.0% % 4.0% % -
% - % 4.3% % -
% - % 3.0% % 3363.0%
% - % 4.0% $ -

Page 40 of 47
% - % 4.0% % -
% - % 4.0% % -
% - % 2.5% % -
% - % 2.5% % -
% - % 2.5% % -
% - % 2.5% % -
% - % 2.5% % -
% - % 3.5% % -
% 3.0% % 3.5% % -
% - % 3.5% % -
% - % - % -
% - % 2.5% % -
% - % 3.0% % -
% - % 3.0% % -
% - % 3.0% % -
% - % 3.5% % -
% - % 3.0% % -
% - % 2.5% % -
% - % 2.5% % 2.0%
% - % 2.5% % 2.0%
% - % 2.5% % 0.8%
% - % 1.0% % -
% - % 1.5% % -
% - % 2.5% % -
% - % 2.5% % 0.4%
% - % 1.5% % 1.0%
% - % 2.0% % 1.3%
% - % 3.5% % -

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% % 3.0% % -
% - PER ROOM $90 % 1.3%
% - % 3.5% % -
% - % 4.0% % -
% - 1.3% % 0.8%
% 2.0% % 1.0% % -
% - % 2.0% $ $1,500
% - % 4.0% % 1.0%
% % 1.5% % -
% - % 4.0% % -
% 2.0% % 1.0% % -
% 2.0% % 1.0% % -
% 3.0% % 2.0% % -
% - % - % -
% - % 1.5% % -
% - PER ROOM $120 % -
% - % - % -
% - % 1.5% % -
% - PER ROOM $228 % -
% - PER ROOM $228 % -
% - PER ROOM $150 % -
% - 3.3% % -
% - % 1.0% % -
% - PER ROOM $84 % -
% - % 2.0% % 1.5%
% - % 3.8% % -
% 2.0% % 3.0% % -
% - % 2.5% % -

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% - % 2.0% % 2.5%
% - % - % -
% - % 2.0% % -
% 2.0% % 3.0% % -
% - % 2.5% % 2.0%
% - % - % -
% - % 2.0% % 2.0%
% - % 3.0% % -
% - % 4.0% % -
% - % 3.0% % -
% - % - % -

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 HIGHLY CONFIDENTIAL

MTG.
STATE RECORD.
Alabama -
Alaska -
American Samoa -
Arizona -
Arkansas 0.15%
California -
Colorado -
Connecticut -
Delaware -
District of Columbia 1.50%
Florida 0.35%
Georgia -
Guam -
Hawaii -

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Idaho -
Illinois -
Indiana -
Iowa -
Kansas 0.26%
Kentucky -
Louisiana -
Maine -
Maryland -
Massachusetts -
Michigan -
Minnesota 0.23%
Mississippi -
Missouri -
Montana -
Nebraska -
Nevada -
New Hampshire -
New Jersey -
New Mexico -
New York 2.80%
North Carolina -
North Dakota -
Northern Marianas Isla -
Ohio -
Oklahoma 0.10%
Oregon -
Pennsylvania -

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Puerto Rico -
Rhode Island -
South Carolina -
South Dakota -
Tennessee 0.12%
Texas -
Utah -
Vermont -
Virginia -
Virgin Islands -
Washington -
West Virginia -
Wisconsin -
Wyoming -
Other -

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Seattle Student Housing HIGHLY CONFIDENTIAL
Tax Forecast
$ in 000s

TAX ASSUMPTIONS
Maximum as % of Revenue 6.50%
Minimum as % of Revenue 5.00%

TAX FORECAST
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Hotel Real Property Tax Liability - - - - - - - - - - - - - - - $101 $206 $211 $215 $219 $224
Total Tax Liability - - - - - - - - - - - - - - - $101 $206 $211 $215 $219 $224

TRANSITIONAL HOTEL TAX IMPACT:

TOTAL REVENUES - - - - - - - - - - - - - - - $2,024 $4,130 $4,212 $4,297 $4,383 $4,470
Pre-Tax NOI - - - - - - - - - - - - - - - $1,001 $2,009 $2,051 $2,094 $2,138 $2,183
Cap Rate 8.5% 8.5% 8.5% 8.5% 8.5% 8.5% 8.5% 8.5% 8.5% 8.5% 8.5% 8.5% 8.5% 8.5% 8.5% 8.5% 8.5% 8.5% 8.5% 8.5% 8.5%
Assessed Value - - - - - - - - - - - - - - - $11,772 $23,636 $24,133 $24,641 $25,158 $25,686
Annual Incremental Value - - - $11,772 $11,864 $497 $507 $517 $528
Transitional Assessment 20.0% - - - $2,354 $2,373 $99 $101 $103 $106
ADJUSTED ASSESSED VALUE - - - - $2,354 $16,499 $28,463 $29,061 $29,672 $30,295
Tax Liability as % of AV 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Transitional Tax Liability - - - - - - - - - -
Maximum Tax Liability - - - - $132 $268 $274 $279 $285 $291
Minimum Tax Liability - - - - $101 $206 $211 $215 $219 $224
EFFECTIVE TAX LIABILITY - - - - - - - - - - - - - - $101 $206 $211 $215 $219 $224
% of Revenue #DIV/0! #DIV/0! #DIV/0! #DIV/0! 5.0% 5.0% 5.0% 5.0% 5.0% 5.0%
% Growth #DIV/0! #DIV/0! #DIV/0! #DIV/0! 104.0% 2.0% 2.0% 2.0% 2.0%

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