STADIUM VIEW SUITES DST

• An investment in a newly constructed, Class A, 197-unit student housing property located on 11.23 acres within walking distance of Iowa State University (“ISU”) in Ames, Iowa.
• Offers first-class amenities and a mix of two-, three- and four-bedroom units.
• Currently 99% occupied with in-place rents that the Trust Manager believes are below market.
• Demand is forecasted to remain steady based on overall enrollment trends and minimal new supply in the pipeline.
• With more than 36,000 students enrolled, ISU is the third-largest university in the Big 12 Conference. Enrollment has grown over 40% in the past decade*.
• Managed by Asset Campus Housing (“ACH”), the nation’s largest third party student housing property manager

INVESTMENT STRATEGY

Stadium View is currently a stabilized, well performing, high quality, core product. Arrimus Capital Advisors’ objectives for the property are to:

• Preserve and return investors’ capital investment;

• Yield attractive and stable distributions to investors;

• Steadily increase rental growth; and

• Realize capital appreciation over the hold period.

STRATEGIES TO MAXIMIZE RENTAL REVENUE

Strategy #1: Furnishing bedrooms

Units at Stadium View are offered with furnished common areas including a couch, a chair or a loveseat, a coffee table, a TV stand with a flat screen TV, kitchen bar stools and all kitchen appliances. However, the bedrooms come unfurnished with the option to rent furniture from a third party provider at a cost of $75/month.

Most of the comparable properties in the ISU student housing market provide fully furnished units, so the addition of bedroom furniture will bring Stadium View up to the market standard while allowing the property to increase asking rents accordingly.

Assuming a premium of $25/bed/month for the addition of bedroom furniture, the potential incremental annual revenue generated by furnishing the 518 bedrooms equates to $155,400, or 4% of the in-place gross potential rent based on the rent roll as of November 27, 2017. Adding the $25/month premium to the in-place rents at Stadium View would result in rental rates 11.7% below, on average, the 2017/2018 average rents at five stabilized competitive properties.

Strategy #2: Increasing two-bedroom rents

Prior ownership did not charge a meaningful premium for two-bedroom units compared to three- and four-bedroom units. Market rents for three- and four-bedroom units are $10 and $20 per bed per month more, respectively, than two-bedroom units.

Among the five stabilized competitive properties in the market, two-bedroom units rent for a premium of $57 and $114 per bed per month compared to three-bedroom or four-bedrooms, respectively. As a result, the two-bedroom units at Stadium View are 24.8% below the average market rate.

Strategy #3: Implement a Ratio Utility Billing System (RUBS)

Of the six closest competitors in the market, five properties charge residents for electricity. Stadium View is one of the few properties that includes all utilities in the rent. Implementing an electricity bill-back program will generate an estimated $115,000 for the 2019/2020 academic year, or a 5% increase to underwritten NOI. Per ACH, half of the competitive properties also bill-back the cost of water and sewer to residents, presenting an additional opportunity to recapture utility costs. Water and sewer bill-back, which is not projected to occur until the 2020/2021 academic year, would generate an additional 3.5% of NOI.