INVESTMENT OFFERING THE QUARRY - ATLANTA, GA

BUSINESS PLAN OVERVIEW

• The Quarry is a 1970’s vintage, 415 unit asset, boasting sprawling 2 & 3 bedroom layouts with an average unit size of 1,259 sqft
• Of the 415 units, 225 have been fully renovated or partially renovated, leaving 200 units remaining. Interior renovations to include LVP flooring, high end paint scheme, upgraded cabinets, lighting, and vanities, tub refinishing and appliance upgrades
• Unit rental pricing trails comparable properties by $300/month, allowing for significant increase in revenues
• Opportunity to improve curb appeal and tenant retention through exterior capex overhaul and amenity improvement. This includes exterior paint throughout the property, pool refurbishment, playground and sports court improvements, and enhanced security systems and cameras throughout property
• Current management was not strong, leaving opportunity for SEAMS management team to property re-tenant the asset, pushing rents and creating a true sense of community
• The asset had seen a rising rate of crime. Installation of security cameras and security personnel patrolling the property will deter the crime and improve the overall sense of security and community at the property
• Property has a beautiful clubhouse and amenity center, that has great bones, but needs cosmetic improvements to become the true focal point of the asset

PROPERTY MANAGEMENT

SOUTH EAST ASSET MANAGEMENT SERVICES (SEAMS)

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

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

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

Property Management's overview of the asset:

The Quarry Apartments located in beautiful Stonecrest GA boast a myriad of exceptional qualities that residents look for. Pleasant, landscaped grounds and well-kept common areas, create an inviting and aesthetically pleasing environment.

Recent property wide exterior and interior renovations create a modern look and feel that sets itself apart from neighboring properties.

Newly installed security camera system utilizes state-of-the-art technology that provides a completely new sense of security throughout the community.

The Quarry is within walking distance to a plethora of retail shopping that brings a new level of daily life convenience .

Interstate 20 is located about a mile from the property which working professionals can utilize to quickly get to Downtown Atlanta which is approximately 16 miles away.

SEAMS believes The Quarry will be a huge success as a multifamily investment project, we look forward to making and adding even more value to the project every single day.

-Aaron Rubio | Director of Operations | SEAMS

CAPITAL IMPROVEMENTS BUDGET

$5,000,000

$12,048/unit

• INTERIOR $2,300,000
• 415 Units - 215 renovated by previous ownership
• 200 units @$11,500/unit = $2,300,000
• RENOVATE THE REMAINING UNITS TO OUR MODERN STANDARD
• Replace flooring with LVP and Carpet
• Faux granite countertops throughout kitchen and bathrooms
• Stainless steel appliance upgrade package
• New backsplashes in kitchens
• New modern paint schemes
• Upgraded lighting packages
• Ceiling fans
• 2" Faux wood blinds
• LVP Flooring
• Painting
• Renovated Kitchens - Shaker Cabinets, New Hardware New Appliance, Updated LED Lighting, New Sinks
• Renovated Bathrooms - New Vanities, Reseal Tubs
• EXTERIOR $1,990,000
• Pressure Wash all exteriors
• Exterior Painting - all buildings paintend
• Breeze ways cleaned and painted
• Patch & Stripe parking lots
• Roofs have been replaced in previous 5 years so no roof work is required
• Landscaping Overhaul
• New Signage throughout property
• BBQ Area
• Installation of all new security system (43 Cameras, 3) 70" Screens in the leasing office, License Plate Reader at front gate)
• Upgrade Pool & Deck
• All new decking around leasing office
• DEFERRED MAINTENANCE $710,000
• HVAC Replacement
• Deck & Balcony in Units Replacement
• Plumbing
• Misc.

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

SECURITY CAMERAS

43 Security Cameras Installed

License Plate Recognition cameras at entrance gate

Signage installed throughout the community highlighting the use of security cameras

3) 70" Screens installed in Leasing Office

Drone footage showing the CapEx improvements that have been made since we acquired the asset

FIRE UNITS

Building 36 was involved with a fire under the previous ownership

The insurance payout is slightly more than $1M

We are working with RENU Restoration out of Texas, they will handle all aspects of the restoration.

WHY WE LIKE THIS INVESTMENT:

• Location and Market - we continue to direct our capital towards Atlanta as the employment and population metrics point to a lack of work force housing
• 50%+ of the units have been renovated in some fashion, saving tremendously on interior CapEx monies required
• Highly attractive, assumable loan - fixed rate Agency debt at 81% LTV with 5 years of I/O
• Successful tax appeal in 2022 allows for taxes to be frozen through 2024
• Huge value-add upside, with market competitors charging $300/month premiums for similar units
• Massive unit size, with units averaging over 1,250 sqft
• Highly desirable 2 & 3 bedroom units, including 77 townhomes
• Asset is gated and has full perimeter fencing, making it easy to create a secure, safe property that is always one of the most desirable aspects of this asset class

UNDERWRITING

PROJECTED RETURNS

A $100,000 Investment is projected to return $151,000 in 3 years

• Average Annual Return (AAR): 17%
• Internal Rate of Return (IRR): 15%
• Equity Multiple: 1.51x
• Quarterly Distributions are projected to begin 12-18 months after closing depending on CapEx progress and cash flow

Projected Year 1 Cost Segregation Savings: $30,000 on a $100,000 Investment

We have already closed on this property as of 6/15/23

• We were presented this opportunity off-market and after underwriting it we knew we wanted to purchase it.
• We also had debt locked in that we wanted to utilize. In order to meet the closing time frame Four Oaks Capital put up all the initial capital.
• We are planning on opening up 30% of the equity in the investment to our investors.

INVESTMENT STRUCTURE

Ownership Split:

• 90% INVESTORS - Class "A" Limited Partners
• 10% MANAGING MEMBERS - Class "B" Four Oaks Capital

Class "A" Limited Partners projected returns:

• Average Annual Return (AAR): 17%
• Internal Rate of Return (IRR): 15%
• Equity Multiple: 1.51x
• Projected Hold: 3 Years
• Minimum Investment: $50,000 for returning Investors - $100,000 for new investors

Investment Timeline:

• June 15th - Four Oaks Capital closed on the property
• October 19th - Investor Webinar - 8pm EST
• October 24th - PPM (Private Placement Memorandum) and Operating Agreement sent out via Investor Portal for E-Signature along with Wire Instructions
• November 24th - Investment window closes
• Please note that existing investors will have priority access to the investment

The video below walks you through your INVESTOR PORTAL investment process

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

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