The Hanover Investment Summary

The Hanover Apartments
A stabilized 157-unit multi-family asset with proven value add

DISCLOSURE
This material does not constitute an offer or a solicitation to purchase securities.
An offer can only be made by the Private Placement Memorandum (PPM). This
document is an informational summary of the prospective investment
opportunity only. The PPM and its exhibits contain complete information about
the Property and the investment opportunity. This presentation has been
prepared to summarize such information for prospective investors in the
Company. The information contained herein is not a substitute for an investor’s
complete review of all of the information attached to the PPM as part of their
own due diligence regarding this investment opportunity and its suitability for
their investment portfolio.
All numbers shown are preliminary and are likely to change.

How We Select Markets and Properties
JOBS
Are the metro and the
submarket adding
enough well paying
jobs?
RENT GROWTH
What is driving it and
what are projections?
This is a key metric that
greatly affects the
project outcome.
SUPPLY & DEMAND
Monitor incoming
supply carefully to
ensure it will not spike
the vacancy rates
SALES TRENDS
Monitor sales trends
continuously to ensure
that our exit cap rates
are on target
LOCAL DRIVERS
Properties with local job
growth drivers like
corporate relocations
or landmark
construction have the
most potential.
VALUE ADD
Underwriting dozens of
properties and
rejecting most, to find a
property with strong
enough value add
potential to be
selected.
RENT GROWTH TRACK
RECORD
Do the property and
submarket have a
strong 12 month rent
growth track record.
TRAPPED POTENTIAL
Are there other
problems that we can
fix, such as poor
marketing, low quality
staff, curb appeal, or
easy improvements?

The Seattle-Tacoma
Puget Sound Submarket

SeaTac Submarket
SeaTac neighbors
the busy industrial
warehouse hubs of
Renton, Kent, and
Federal Way, all
within 10-20 minutes
drive away.
Seattle, Bellevue,
and Tacoma are
each merely 25
minutes away.

SeaTac Submarket
Tacoma
Seattle
Path of Progress
between the metros

Seattle Metro
#1 #3 #1 #3
Fastest
Home Price
Growth
Hottest
Housing
Market
Fastest
Growing Big
City
Best Place for
Business &
Careers
Seattle, WA
Standard &
Poor’s/Case-Shiller
Home Price
Index,2018
Zillow 2018
US Census Bureau,
2017
Forbes, 2017

Tacoma Metro
#3 #5 #4 #5
Nationwide
Construction
Growth
Most
Competitive
RE Market
Fastest Rent
Growth in US
Top Growth
City in US
Tacoma, WA
Wallethub, 2017 RedFin, 2017 RentCafe, 2017 U-Haul, 2018

Pivot Point Location
The Hanover’s central location provides ready access to the multiple and
growing employment centers in the Seattle region. These employment
hubs include SeaTac International Airport, Boeing’s 737 and Paccar’s
manufacturing plants in Renton, Boeing Field, Blue Origin’s expanding
campus, the Kent Valley industrial and distribution hub, as well as Seattle
and Bellevue. The Property also benefits from its close proximity to the
Angle Lake Link light rail station, less than a mile from the Property. The
most southern station in Seattle, the light rail provides convenient access
to stops at the airport, downtown Seattle and the University of
Washington. Voters have already approved an extension of the Link light
rail to add stations connecting to the Eastside by 2023, including Bellevue
and Microsoft’s campus in Redmond, and Tacoma and Federal Way by
2030
Source: Broker OM

Top Employers in the MSA
77K 11K 13K
56K 11K 10K
5K 11K 20K
41K 11K 15K
40K 11K 9K
30K 6K 9K
Joint Base
Lewis McChord

“Cloud City”
Seattle added more high-tech
jobs than any other city in the
last 2 years, totaling 23,575
jobs - CBRE TECH THIRTY
Seattle has more software jobs
available than any other city
in the U.S. - GLASSDOOR

Commercial Space Outlook, 2017 - 2019
Tenant Move-In Date Total SF Property Submarket
Redfin January-17 112,990 Hill7 Seattle CBD
Amazon July-17 367,453 Midtown21 Seattle CBD
Amazon August-17 354,918 Centre 425 Bellevue CBD
Pokémon August-17 102,112 Lincoln Square S. Bellevue CBD
Amazon October-17 419,000 Troy Block Lake Union
Amazon March-18 290,673 Tilt49 Seattle CBD
Amazon June-18 312,691 Macy's Building Seattle CBD
Facebook September-18 388,911 Arbor Blocks Lake Union
F5 April-19 515,000 F5 Tower Seattle CBD
Amazon January-20 722,000 Rainier Station Seattle CBD
Oculus TBD 1,000,000 TBD Kirkland
Notable Move-Ins and confirmed signed leases for real estate NOT owned by the tenant companies.

Location Commute Times
Source: Broker OM

Alaska Airlines
Alaska Air Group
Headquarters
Two 12-story buildings
totaling 532,000SF
”PROJECT COPPER RIVER”
- 19225 International Blvd, SeaTac, WA
- 7.5 acres, purchased for $32M on 1/2/2018
- 4x six-story buildings totaling 490,000SF
- 8-story parking structure
- Phase I completion: late 2019 - early 2020
ALASKA AIR GROUP HEADQUARTERS
Two 12-story buildings totaling 532,000SF

Property Highlights
157 Units
94.9%
Occupancy
Unit Mix
36% 0-1 Bed
64% 2 Bed
Broker provided information
(total)

Property Highlights
0.5 mile from
Link Light Rail
Station
Proximity to
Seattle Tacoma
International
Airport (5 min)
139 un-renovated
units for value add
(out of 157)
Proven $150 – 300
rent bumps on
renovated units
Rent growth
in submarket
consistently
above 3.5%

Property Highlights
# Units Type Sq. Ft.
2 Studio 480
48 1 Bed 1 Bath 676
6 1 Bed 1 Bath 700
71 2 Bed 1 Bath 976
30 2 Bed 1 Bath 1000
Studio
1%
1 Bed Sm
31%
1 Bed Lg
4%
2 Bed Sm
45%
2 Bed Lg
19%
Unix Mix
Hanover has an attractive 34% 0-1bd
to 64% 2bd unit mix.

Investment Strategy &
Financials

Investment Strategy
A fire in 2015 damaged 18 units. Repairs and renovations have been completed on these units with
new flooring, new kitchen cabinets, upgraded hardware, flooring, and new countertops. The
renovated units are able to command between $200-300 rent increases over un-renovated units.
Previous owner has spent significant CapEx on improving the exterior of the property and
implementing an extensive fire alarm system.
INTERIOR REHAB ESTIMATES
- 139-units pending upgrade
- $6,000 - $12,000 / unit interior rehab estimate
- Total interior CapEx estimate: $1.4M
- Estimated upside: $400k/year
- Estimated value increase: $7M
OTHER IMPROVEMENTS
- Potential W/D hookup additions
- Adding new carport (current rents at $35/carport)
- New dog park and other amenities
- Railings, siding repairs and improvements
- Modernize & expand entrance
- Additional improvements as recommended
- Transitioning to a higher income tenant base

FPI Management
Founded in
1968
Over 110,000
units under
management
An award-winning
property manager
Privately owned,
exclusive 3rd-party,
with zero
ownership interest
Largest 100%
fee-based
property
manager in
the nation

Acquisition Highlights
CapEx
$1.8M Interior
$500k Exterior
Purchase Price
$28.6M
Price Per Unit
$182K
Total Project Cost
$31.5M
($500k operating
reserves)
Loan Assumption:
4.5% Blended Rate
8 Year Fixed
3 Year I.O.
Total Equity
Raise
$12M

Exit Highlights
IRR
Project-level
19.17%
Individual-Level
Pre-tax 15.03%
post-tax 16.88%
Projected Average
Annual Return
Pre-tax 17.66%
Post-tax 15.82%
Exit
Cap Rate
6.1%
Notes:
• All after tax return calculations assume 40% tax bracket and 20% long term capital gains tax rate, plus net investment
income tax of 4% (3.8% rounded up).
• This property qualifies for approximately $6 million in accelerated/bonus depreciation in the first 1-2 years of ownership. The
depreciation will be shared with investors in proportion to their ownership percentage.
• Investors are encouraged to contact their tax professionals to understand each individual’s situation.
Exit Assumption in Year 5

Deal Structure & Mortgage Info
Mortgage Info
The purchase of the Hanover Apartments will be
financed through assumption of existing loans. The
table summarizes the blended debt service.
Share of operating profits
Investors get 80% of all distributable operating profits, and
receive 7.25% preferential return before promoter
distribution.
Upside on Sale
Investors share a 70/30 split of net profits with promoters,
after accounting for investor capital, debt and selling
costs.
Profits beyond a 25% annual return to investors will be split
60/40.
Promoter Fees
Acquisition Fee: 2% of project cost
Loan Fee: 0.5 points to affiliated loan
brokerage
Asset Management Fee: 1% of gross income annually
Mortgage Info
Purchase Price + Cap Ex $30,431,300
% Down 32%
Down Payment $9,723,300
Mortgage amount $20,708,000
Interest Rate 4.50%
AM.Term (250yr if int. only) 30
Loan Term 10
Annual Debt Service Year 1-3 1,025,610
Annual Debt Service After Year 3 $1,260,405

Acquisition Expenses & Estimated Capital Expense
Summary of Acquisition Costs
Purchase Price $28,600,000
Less Loan Amount $20,708,000
Down Payment $7,892,000
Approximate Closing Costs
Legal (RE, Lender and Syndication) $60,000
Lender fees $30,000
Loan assumption fee to lender 1.00% $207,080
Loan origination fee 0.50% $103,540
RE Agent fee $0
Lender Escrows $120,000
3rd Party Reports (lender) $3,500
Lender Title Policy $15,000
Other Take Over Expenses $30,000
Due Diligence / Expense Reimb. $15,000
Total Closing Costs $584,120
Other Acquisition Costs
Organization fee 1.00% $314,380
Acquisition Fee 1.00% $314,380
Utility Deposit $20,000
CapEx reserve required by lender $44,745
12 Months Insurance Premium Reserve $39,250
Total Other Costs $732,755
Total Acquisition Costs $9,208,875
CapEx Budget
Unit Upgrades $1,838,000
Exterior renovations $500,000
Reserves $500,000
Total $2,838,000
Raise Amount
Total Acquisition Costs $9,208,207
Total CapEX budget $2,838,000
Total Equity Raise $12,046,875
Total Raise Amount includes Total Acquisition Costs &
Expenses + CapEx budget to renovate the property.

10-Year Pro Forma – Exit Assumption in Year 5
Operating Income
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Gross Scheduled Rent (GSR) $2,776,287 $3,141,306 $3,317,996 $3,434,126 $3,502,808 $3,572,865 $3,697,915 $3,827,342 $3,961,299 $4,099,944
Vacancy / concessions /
delinquent -$138,814 -$157,065 -$165,900 -$171,706 -$175,140 -$178,643 -$184,896 -$191,367 -$198,065 -$204,997
Rent loss during improvements -$36,726 -$32,645 -$12,242 $0 $0 $0 $0 $0 $0 $0
Net rent income $2,637,472 $2,984,240 $3,152,096 $3,262,420 $3,327,668 $3,394,221 $3,513,019 $3,635,975 $3,763,234 $3,894,947
Utility Reimbursement $171,316 $176,455 $181,749 $187,202 $192,818 $198,602 $204,560 $210,697 $217,018 $223,529
Other Income $137,772 $141,906 $146,163 $150,548 $155,064 $159,716 $164,507 $169,443 $174,526 $179,762
Total Operating Income $2,946,561 $3,302,601 $3,480,008 $3,600,169 $3,675,550 $3,752,540 $3,882,087 $4,016,115 $4,154,778 $4,298,237
Operating Expenses
Real Estate Taxes $243,087 $265,556 $288,416 $311,688 $338,301 $338,301 $338,301 $338,301 $338,301 $338,301
Insurance $47,835 $49,270 $50,748 $52,270 $53,838 $55,453 $57,117 $58,830 $60,595 $62,413
Repairs & Maintenance $54,981 $56,631 $58,330 $60,080 $61,882 $63,739 $65,651 $67,620 $69,649 $71,738
General / Admin / Legal $40,428 $41,640 $42,890 $44,176 $45,502 $46,867 $48,273 $49,721 $51,212 $52,749
Management Fees $117,862 $132,104 $139,200 $144,007 $147,022 $150,102 $155,283 $160,645 $166,191 $171,929
Marketing $36,385 $37,476 $38,601 $39,759 $40,951 $42,180 $43,445 $44,749 $46,091 $47,474
Utilities $185,743 $191,315 $197,054 $202,966 $209,055 $215,327 $221,786 $228,440 $235,293 $242,352
Contracted services $48,513 $49,968 $51,467 $53,011 $54,602 $56,240 $57,927 $59,665 $61,455 $63,298
Payroll $240,312 $247,522 $254,947 $262,596 $270,474 $278,588 $286,946 $295,554 $304,420 $313,553
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Operating Expense $1,015,146 $1,071,482 $1,121,653 $1,170,552 $1,221,627 $1,246,796 $1,274,729 $1,303,525 $1,333,209 $1,363,808
Net Operating Income & Cash Flow
Total Operating Income $2,946,561 $3,302,601 $3,480,008 $3,600,169 $3,675,550 $3,752,540 $3,882,087 $4,016,115 $4,154,778 $4,298,237
Total Operating Expense -$1,015,146 -$1,071,482 -$1,121,653 -$1,170,552 -$1,221,627 -$1,246,796 -$1,274,729 -$1,303,525 -$1,333,209 -$1,363,808
NOI $1,931,415 $2,231,119 $2,358,356 $2,429,616 $2,453,923 $2,505,744 $2,607,358 $2,712,590 $2,821,569 $2,934,429
Debt Service -$1,025,610 -$1,025,610 -$1,025,610 -$1,260,405 -$1,260,405 -$1,260,405 -$1,260,405 -$2,166,876 -$1,907,771 -$1,907,771
Cash Flow $905,805 $1,205,509 $1,332,745 $1,169,211 $1,193,518 $1,245,339 $1,346,952 $545,714 $913,798 $1,026,658

Cash Flow & Returns
Notes:
• Model assumes a cash out refinance in year 8 with some equity returned to investors.
Member Cash-on-Cash Returns (before tax)
Operating Income $2,946,561 $3,302,601 $3,480,008 $3,600,169 $3,675,550 $3,752,540 $3,882,087 $4,016,115 $4,154,778 $4,298,237
Operating Expense -$1,015,146 -$1,071,482 -$1,121,653 -$1,170,552 -$1,221,627 -$1,246,796 -$1,274,729 -$1,303,525 -$1,333,209 -$1,363,808
Net Operating Income (NOI) $1,931,415 $2,231,119 $2,358,356 $2,429,616 $2,453,923 $2,505,744 $2,607,358 $2,712,590 $2,821,569 $2,934,429
Capital Expenses (CapEx) -$1,052,100 -$935,200 -$350,700 $0 $0 $0 $0 $0 $0 $0
Debt Service -$1,025,610 -$1,025,610 -$1,025,610 -$1,260,405 -$1,260,405 -$1,260,405 -$1,260,405 -$21,654,436 -$1,907,771 -$1,907,771
Cash Flow $905,805 $1,205,509 $1,332,745 $1,169,211 $1,193,518 $1,245,339 $1,346,952 $545,714 $913,798 $1,026,658
Member Returns $873,920 $873,920 $1,007,407 $935,369 $954,814 $996,271 $1,077,562 $382,000 $639,659 $718,660
Member CoC Return 7.25% 7.25% 8.36% 7.76% 7.92% 8.27% 8.94% 7.92% 13.27% 14.90%
Member Cash-on-Cash Returns (after tax)
Operating Income $2,946,561 $3,302,601 $3,480,008 $3,600,169 $3,675,550 $3,752,540 $3,882,087 $4,016,115 $4,154,778 $4,298,237
Operating Expense -$1,015,146 -$1,071,482 -$1,121,653 -$1,170,552 -$1,221,627 -$1,246,796 -$1,274,729 -$1,303,525 -$1,333,209 -$1,363,808
Net Operating Income (NOI) $1,931,415 $2,231,119 $2,358,356 $2,429,616 $2,453,923 $2,505,744 $2,607,358 $2,712,590 $2,821,569 $2,934,429
Capital Expenses (CapEx) -$1,052,100 -$935,200 -$350,700 $0 $0 $0 $0 $0 $0 $0
Debt Service -$1,025,610 -$1,025,610 -$1,025,610 -$1,260,405 -$1,260,405 -$1,260,405 -$1,260,405 -$21,654,436 -$1,907,771 -$1,907,771
Cash Flow $905,805 $1,205,509 $1,332,745 $1,169,211 $1,193,518 $1,245,339 $1,346,952 $545,714 $913,798 $1,026,658
Member Returns $873,920 $873,920 $1,007,407 $935,369 $954,814 $996,271 $1,077,562 $382,000 $639,659 $718,660
Less Tax on Income -$382,777 -$382,777 -$441,244 -$409,692 -$418,209 -$436,367 -$471,972 -$167,316 -$280,171 -$314,773
Potential tax reduction $2,812,946 $482,746 $356,405 $280,600 $280,600 $280,600 $280,600 $280,600 $280,600 $280,600
Potential after-tax returns $3,304,088 $973,889 $922,568 $806,278 $817,206 $840,505 $886,190 $495,284 $640,089 $684,488
Member CoC Return (after
tax) 27.41% 8.08% 7.65% 6.69% 6.78% 6.97% 7.35% 10.27% 13.28% 14.20%

Cash Flow & Returns
Average Annual Returns (before tax)
NOI (before CapEX) $2,358,356 $2,429,616 $2,453,923 $2,505,744 $2,607,358 $2,712,590 $2,821,569 $2,934,429
Sale price at CapRate of 6.10% $39,537,724 $40,128,627 $40,865,388 $42,327,118 $44,037,406 $45,808,597 $47,642,852 $49,542,412
Sales expenses 2% -$790,754 -$802,573 -$817,308 -$846,542 -$880,748 -$916,172 -$952,857 -$990,848
Closing costs 1% -$395,377 -$401,286 -$408,654 -$423,271 -$440,374 -$458,086 -$476,429 -$495,424
Outstanding mortgage principal -$20,708,000 -$20,708,000 -$20,708,000 -$20,708,000 -$20,708,000 -$28,000,000 -$28,000,000 -$28,000,000
Principal paydown $300,953 $737,446 $1,193,741 $1,670,742 $2,169,399 $377,185 $775,646 $1,196,584
Owner equity $17,944,545 $18,954,214 $20,125,167 $22,020,046 $24,177,683 $16,811,524 $18,989,213 $21,252,724
Subtract investment balance -$12,054,066 -$12,054,066 -$12,054,066 -$12,054,066 -$12,054,066 -$4,821,627 -$4,821,627 -$4,821,627
Operating cash reserves balance $500,000 $500,000 $500,000 $500,000 $500,000 $1,500,000 $1,500,000 $1,500,000
Created equity $6,390,479 $7,400,148 $8,571,101 $10,465,980 $12,623,616 $13,489,897 $15,667,586 $17,931,097
Created equity - member 70% $4,473,335 $5,180,103 $5,999,771 $7,326,186 $8,836,532 $9,442,928 $10,967,311 $12,551,768
Cumulative member cashflow $2,755,247 $3,690,616 $4,645,430 $5,641,701 $6,719,263 $7,101,263 $7,740,921 $8,459,582
Subtract manager balance $0 $0 $0 $0 $0 $0 $0 $0
Cumulative member returns [$] $7,228,582 $8,870,719 $10,645,201 $12,967,887 $15,555,794 $16,544,191 $18,708,232 $21,011,350
Cumulative member returns [%] 59.97% 73.59% 88.31% 107.58% 129.05% 137.25% 155.20% 174.31%
Average member returns 19.99% 18.40% 17.66% 17.93% 18.44% 17.16% 17.24% 17.43%

Cash Flow & Returns
Notes:
Average Annual Returns (potential after tax)
Created equity $6,390,479 $7,400,148 $8,571,101 $10,465,980 $12,623,616 $13,489,897 $15,667,586 $17,931,097
Created equity - member 70% $4,473,335 $5,180,103 $5,999,771 $7,326,186 $8,836,532 $9,442,928 $10,967,311 $12,551,768
Cumulative member cashflow $873,920 $1,747,840 $2,755,247 $3,690,616 $4,645,430 $5,641,701 $6,719,263 $7,101,263 $7,740,921 $8,459,582
Subtract manager balance $149,276 $58,789 $0 $0 $0 $0 $0 $0 $0 $0
Cumulative income tax on CoC -$382,777 -$765,554 -$1,206,798 -$1,616,490 -$2,034,698 -$2,471,065 -$2,943,037 -$3,110,353 -$3,390,524 -$3,705,297
Cumulative potential tax reduction at
bracket of 40% $2,812,946 $3,295,692 $3,652,097 $3,932,697 $4,213,297 $4,493,898 $4,774,498 $5,055,098 $5,335,698 $5,616,299
Long term capital gain tax 20% -$456,280 -$528,371 -$611,977 -$747,271 -$901,326 -$963,179 -$1,118,666 -$1,280,280
Depreciation recapture tax 25% -$2,309,324 -$2,493,828 -$2,678,333 -$2,862,837 -$3,047,341 -$3,231,846 -$3,416,350 -$3,600,854
Cumulative member returns [$] $6,908,276 $8,164,727 $9,533,490 $11,380,611 $13,438,587 $14,293,911 $16,118,391 $18,041,217
Cumulative member returns [%] 57.31% 67.73% 79.09% 94.41% 111.49% 118.58% 133.72% 149.67%
Potential after tax total annual
member returns 19.10% 16.93% 15.82% 15.74% 15.93% 14.82% 14.86% 14.97%
Cash-on-Cash Returns
Before tax 7.25% 7.25% 8.36% 7.76% 7.92% 8.27% 8.94% 7.92% 13.27% 14.90%
Potential after tax 27.41% 8.08% 7.65% 6.69% 6.78% 6.97% 7.35% 10.27% 13.28% 14.20%
Cash-on-Cash Returns / $100,000 invested
Before tax $7,250 $7,250 $8,357 $7,760 $7,921 $8,265 $8,939 $3,169 $5,307 $5,962
Potential after tax $27,411 $8,079 $7,654 $6,689 $6,780 $6,973 $7,352 $4,109 $5,310 $5,678

Cash Flow & Returns
Notes:
Average Annual Returns to Investor
Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Before tax 19.99% 18.40% 17.66% 17.93% 18.44% 17.16% 17.24% 17.43%
Potential after tax 19.10% 16.93% 15.82% 15.74% 15.93% 14.82% 14.86% 14.97%
Average Annual Returns / $100,000 invested
Before tax $19,989 $18,398 $17,662 $17,930 $18,436 $6,862 $6,898 $6,972
Potential after tax $19,104 $16,934 $15,818 $15,736 $15,927 $5,929 $5,943 $5,987
Internal Rate of Return (IRR) to Investor
Before tax 17.95% 16.08% 15.03% 14.72% 14.55% 13.51% 13.61% 13.67%
Potential after tax 20.06% 18.00% 16.88% 16.59% 16.48% 15.60% 15.98% 16.26%
Internal Rate of Return (IRR) for Total Project
23.39% 20.70% 19.17% 18.61% 18.25% 16.95% 16.94% 16.89%

Accelerated Depreciation, Cost Segregation & Taxes
Accelerated Depreciation on Hanover
Cost segregation is an analysis of what portions of the building can be depreciated faster than the standard 27.5
years. This allowed us to depreciate portions over 5, 7 or 15 years.
Under the new tax law, we can take all of those portions and write them off in Year 1.
The depreciation will be shared with investors in proportion to their ownership percentage.
Note:
• This is an estimate of potential tax deferral benefits and should not be relied up on as specific tax guidance.
Total Accelerated
Depreciation and CapEx
expended is at $6M.
Estimate of Benefits | Cost Segregation Study

DATA SOURCE: TAX CUTS AND JOBS ACT
Assumption on Taxes Used in Our Underwriting
Assumed Tax Brackets
• All our calculations are based on an assumed 40% tax bracket and 20%
long term capital gains tax rate, plus net investment income tax of 4%
(3.8% rounded up).
• The following is the IRS breakdown on tax brackets.
• Every individual has unique scenarios.
• Investors are encouraged to contact their tax professionals for specific guidance.

DATA SOURCE: TAX CUTS AND JOBS ACT
Tax Magic
Tax Magic:
• Yes, the after tax returns are HIGHER than before tax. This is not a typo.
The tax bonus available reduces taxes, and gives investors who are
able to offset passive income free use of that tax savings until the
property is sold.
• Unused passive tax deductions can be carried forward and used to
offset gains at sale.
• A non-tax-advantaged investment would need to yield 21% or better to
match. The investment here is workforce housing in the Path of Progress of a
core market, the epitome of stable.

Our Team
CREDENTIALS
- Full time RE professional and apartment investor since 1982
- Licensed RE broker
- Licensed general contractor
- 3500 loans/$1.5Billion funded
- BS Mechanical Engineer/ BA Economics
- 36 years of Real Estate experience
- 1400+ units under ownership/management
As a loan broker, the recurring question: How could so much capital be
underutilized? Borrowers were struggling to qualify for a loan, but were
sitting on significant assets earning nothing for them.
GOALS
1) Offer reliable investments to provide a true return and eventual
financial freedom.
2) Leave investors, tenants, and all we work with in better condition for
having worked with us.
JEAN-MARC
LANDAU
Strategic
Leadership

Our Team
BONNY LAI
Acquisitions & Analysis
Manager
LIANE FANG
Project Manager
LAURETTA HAYES
Controller
IVANNIA NAVARRETE
Director of Operations
CHRISTY BROCK
Marketing & Sales Manager
NIR ARAD
VP of Nulia.US
YULIA ARAD
CEO of Nulia.US
partnered with

Core Competencies
IDENTIFY & VERIFY
Through very thorough market research
focused on the right metros, sub-market
and target properties, we identify high
quality assets with upside and a
favorable risk-reward ratio.
MANAGE & ENHANCE
Higher rents and higher occupancy drive
the bottom line, enhancing profitability
and increasing the property’s value.
DIVEST PROFITABLY
Our goal is to sell the property within a 3-
7 year time frame, doubling the investor
equity. We provide on-going guidance
on our progress towards our stated exit
goals for the property.
ACQUIRE & STABILIZE
Our Asset Managers and principals work
side by side with our property team to
acquire the asset. We then work
diligently to turn/improve/stabilize the
property.

Portfolio & Track Record
CHANCELLOR
224 unit property in
Houston, TX,
acquired in Feb
2014 for $7.6MM.
Sold for $10.25 MM
in April 2016.
Annual returns to
investors were over
35%
WOODS OF
RIDGMAR
235 unit class B,
Fort Worth, TX.
Acquired in Dec
2016 for 16.7Mil.
Completed 1Mil
rehab. Seeing $200
rent bumps. Cash
flowing to pro
forma.
VILLA DEL LAGOS
248 unit class C
property in Dallas,
TX acquired in
early 2015 for
$5.8MM. Sold Jan
2017 for $11.4MM.
Average annual
investor returns
over 70%.
FLAMINGO
192 unit in Las
Vegas, NV.
Acquired in April
2017 for 17.2M.
About 2/3rd of
$5M transformation
to student housing
completed. Almost
doubling rents.
SOUTH LAKE SIDE
237 unit 6-building
Class C project
purchased for
$12.3MM in Dec
2015. Being
rehabbed and
stabilized.
Some properties are in partnership with other groups

Next Steps
Who Can Invest Minimum Investment
Accredited investors only. $100K. First time investors with Financial
Attunement Inc., $75K.
Investment Timeline
Investment documents currently available.
Expression of interest immediately.
Money wired immediately.
Next Steps
Contact Christy Brock at christy@finatt.com or call (510) 282-5402 with questions or to ask for the
subscription documents and PPM.

Property Photos
Private patios – new fencing will help fetch a rent premium

Property Photos
Classic kitchen

Property Photos
Post-fire rehabbed kitchen

SeaTac Airport
The Hanover is minutes from the City of SeaTac and Seattle Tacoma International Airport, home to
numerous employers and a ready source of tenants. Significant developments have been sparked
by the construction of three Link Light Rail stations with plans for lively commercial districts each one.
SeaTac Airport is the ninth busiest airport in the United States and an important center of
transportation and employment for the area. Over 18,500 jobs support this transport hub, creating
multiple job opportunities for The Hanover residents. Both Alaska Air and Horizon Air are
headquartered just to the south of the airport, employing 22,000 workers. The Port Authority alone
employs 1,750. Other significant employers include the TSA and the FAA. SeaTac’s passenger
growth is the nation’s strongest. Further growth is projected with new construction of an International
Arrivals terminal scheduled for completion in late 2019. The new 450,000-square- foot facility will
handle 2,600 passengers per hour.
SeaTac’s International Arrivals expansion currently under construction will double the number of
international flights and destinations over the next 25 years further driving the area’s economy.
Source: Broker OM

Downtown Seattle
The Seattle CBD, a short drive or rail ride away, includes over 54 million square feet of office space,
anchored by employers such as Amazon, Starbucks, Nordstrom, The Gates Foundation and Russell
Investments. Seattle’s downtown retail core is also home to 1,500 shops, ranging from department
stores, national and international retailers to local boutiques, furniture galleries, designer shops and
specialty stores. Seattle is also a cultural hub with the Fifth Avenue Theatre, Paramount Theater, ACT
Theater, Benaroya Symphony Hall and the downtown Seattle Art Museum.
8.4 million square feet of new commercial development is slated for completion in the downtown
Seattle area by the end of 2020, 81% of which is already preleased. The new space will provide
capacity for an additional 47,772 employees (based on the industry standard of 175 square feet per
employee).
While the commercial employment market is expanding, an inadequate supply of multifamily
property is in the pipeline. Through 2020, less than 23,000 units are slated for completion in the entire
city of Seattle. A severe shortage of multifamily units is on the horizon, setting the stage for an
extended period of significant rent growth.
Source: Broker OM

Bellevue
A short drive to the north, Bellevue is an epicenter for commercial growth with world-class retail and
8.8 million square feet of office space. Recent announcements by large occupiers such as Amazon,
Pokémon, and WeWork has left much of the new office space, 1.1 million SF delivered in 2017,
spoken for. An additional 600,000 square feet will become available in 2019 with Expedia’s move to
Seattle, along with 450,000 more when REI completes the first phase of its new headquarters in The
Spring District master planned community. These projects alone account for a total of 2.15 million
square feet and capacity for an additional 12,300 employees (based on the industry standard of
175 square feet per employee). This does not take into account another 4.5 million square feet that
is currently in planning.
Looking forward, with the increase in commercial space now on the horizon, significant numbers of
new employees will be entering the Bellevue market. With new capacity for at least 12,300 jobs
between now and 2020, only 3,074 multifamily units are scheduled for completion in Bellevue,
including the Spring District in the same timeframe. This disparity between demand and supply will
contribute to what will likely become exponential upward pressure on rents.
Source: Broker OM

Renton
Situated on the south shore of Lake Washington, downtown Renton is just 15 minutes northeast of The
Hanover. With its urban renewal, outstanding array of retailers, many recreational amenities and major
employers, Renton provides both desirable lifestyle amenities and a significant source of highly-paid
tenants.
Renton’s main attraction is The Landing, a 46-acre lifestyle center built by Dallas-based Harvest Partners.
The Landing offers restaurants, a movie theater, and retailers that include Marshalls, Target, PetSmart,
Dick’s Sporting Goods and Panera Bread. The city also has many recreational areas, primarily the Gene
Coulon Memorial Beach Park with 57 acres of land and water along the southeast corner of Lake
Washington.
Significantly, Renton’s Southport waterfront project, with a cost of $590 million, includes a recently
completed 347-room Hyatt Regency with a 40,000 square-foot conference center, and 730,000 square
feet of office space currently under construction.
Source: Broker OM

Kent
Located at the heart of the Seattle Metro area, Kent is an equidistant 19 miles to Seattle, Bellevue
and Tacoma. As Washington’s 6th largest city with 125,000 residents, Kent is a mecca for over 100
employers, along with lifestyle retail, entertainment and sporting event venues. A highly diversified
employment base provides jobs in a wide range of sectors, including aerospace, technology,
medical, retail, manufacturing and government. Major employers include Boeing, Amazon, Blue
Origin and Alaska Airlines. Kent Station is a nearby lifestyle center designed with a traditional main
street and a diversified mix of shops, restaurants and movie theatres. ShoWare Center provides a
welcome venue for events with 6,500 seats and is home to the Seattle Thunderbirds hockey team
and Tacoma Stars soccer team, along with multiple other ongoing users.
Kent’s central location also offers multiple transit options to regional employment centers. Kent
Station includes a stop for the Sounder Commuter Rail with trains running to Tacoma, Seattle and
Everett, as well as access to 20 bus routes.
Source: Broker OM

Kent Valley
The Hanover offers immediate access to Kent Valley with 10 million square feet of office space and
121 million square feet of industrial space. Three million square feet are currently under construction
with the capacity to hold 4,000 new potential employees. Kent Valley has one of the largest
concentrations of manufacturing and industrial jobs in the country, and continues to grow. Notably,
Amazon recently opened an 800,000-square- foot distribution facility currently employing 1,200 and
growing. Kent Station is a retail destination with 300,000 square feet of space. ShoWare Center, home
to the Seattle Thunderbirds hockey team and Tacoma Stars indoor soccer team, draws local and
metro wide audiences year-round for sporting events, concerts and community events.
Source: Broker OM

Alaska Airlines
Source: Broker OM
Alaska Airlines corporate headquarters is located directly south of The Hanover in SeaTac. The current
headquarters consists of two 12-story buildings totaling 532,000 square feet consolidating the Airline’s
operations into a singular campus in 2015. Significantly, in January 2018, Alaska Airlines announced
plans for Project Copper River, a 10-acre site located across the street from the Airline’s current
headquarters. The plans indicate a four-phase project will be built with four 6-story buildings totaling a
combined 490,000 square feet and also include an 8-story parking structure. The first phase is
expected to be complete in late 2019 or early 2020.

Amazon Fulfillment
Source: Broker OM
Amazon employs over 1,200 at the nearby 800,000-square-foot Kent Distribution
Center, the fifth such fulfillment warehouse in Washington. Also, Amazon and Amazon
Fresh centers encompass 1.3 million square feet of space in the area. The highly-
automated centers are focused on the future of warehousing and has employees working
next to robots. It is also next to an additional Amazon sortation center where
hundreds of workers sort packages to individual post offices. The company is a major
local employer with jobs from sorters, floor managers, and operations executives, all the
way up to robotics engineers. Amazon is on the cutting edge of automation and the
centers rely heavily on professionals to operate these essential and complex machines.

Boeing Manufacturing Hub
Source: Broker OM
Boeing’s facility in Renton, where it assembles the 737, is rolling out jets at an
unprecedented rate. Sales have soared to their second highest level ever as orders
for the 737 Max have climbed above 1,0 0 0 . Boeing plans to increase the production
rate of 737s at its Renton plant to from the current 42 per month to 52 by 2018.
Employment will swell as production increases. The company also won a $22 billion
deal from Indian airline SpiceJet Ltd. which includes an order for 100 Boeing 737 Max
and an option for additional purchases. The company predicts a need of $265 billion
or 1,850 planes over 20 years for this new client alone.
Boeing also has a significant presence the area, producing vertical tail fins for
several of the company’s newer aircraft models, as well as many related aircraft
parts. The Auburn Boeing Plant, opened in1966, is the largest airplane parts plant in
the world with 2.1 million square feet and 265,000 parts manufactured each year.
With 11,0 0 0 employees, the Auburn Boeing plant will benefit from the current
backlog of over 5,800 planes. The Frederickson facility comprises 1.3 million square
feet and employs 1,800 aerospace workers.

Blue Origin
Source: Broker OM
Blue Origin, the private space transportation company owned by billionaire Je Bezos, the founder and CEO
of Amazon, is rapidly expanding in the Kent Valley. One of several outer space companies in the Puget
Sound region, Blue Origin is trying to make space tourism economically feasible by developing a rocket that
can be reused. In December 2017, the company purchased 31 acres of land near its headquarters in Kent.
Early plans indicate a 236,000 square foot warehouse and 102,900 square feet of office space will be built
along with significant roadway and landscaping improvements. This is in addition to the 120,000 square feet
of warehouse space in Kent the company added last year. With an employee count now over 1,400
growing and from 600 less than two years ago, this explosive employment growth is expected to continue.
Blue Origin currently builds its New Shepard (rocket) vehicles and both of its BE-3 and BE-4 rocket engines in
Kent before shipping them to West Texas for final testing and launch. The company has already started
unmanned flight tests of its New Shepard rocket and aims of flying tourists and researchers to the edge of
space in the next year. The engines are anticipated to be ready by 2020 with plans to use them on the
large orbital launch vehicle, the New Glenn, named for late astronaut and U.S. Sen. John Glenn.

Port of Seattle
Source: Broker OM
State-of-the-art cargo handling facilities helped rank Seattle as the nation’s 5th
busiest U.S. seaport in 2015, serving 18 international steamship lines moving more
than 2.1 million TEUs (20-foot equivalent unit containers). The Port of Seattle’s
economic impact is strong. Seattle’s Seaport and Airport generate nearly 200,000
jobs throughout the region with payroll in excess of $6.8 billion. The Port of Seattle
plays a key role in bringing international trade, transportation and travel to the
Pacific Northwest, and supports industries as diverse as tourism and commercial
fishing. The port is also a key builder of road and rail infrastructure, partnering with
other agencies to improve freight traffic from Tacoma to Everett.

Des Moines Creek Business Park
Source: Broker OM
Construction began in August 2014 on the Des Moines Creek Business Park, one of the
most ambitious developments in the Puget Sound area. Pannattoni, the Port of Seattle,
and the city are collaborating to build a Class A business park with up to two million
square feet of office and ex industrial space covering 87 acres. It is expected to provide
2,200 permanent jobs and 350 construction jobs. The purpose of the park is to draw
businesses that need proximity to SeaTac and the ports in Seattle and Tacoma.
Significantly, the FAA recently chose the Des Moines Creek Business Park to build a new
300,000-square-foot office headquarters. This will bring 1,600 office jobs to the area, plus
another 600 industrial jobs when the second phase of the project is completed.

Southport
Source: Broker OM
The southernmost end of Lake Washington in Renton is in the midst of a
revitalization project known as Southport. Seco Development is in full
swing, building a luxurious 347-room Hyatt Regency hotel, and three nine-
story office buildings totaling 730,000 square feet. Upon completion, the
project will employ 6,000 people and provide workers a unique waterfront
work environment.

Valley Medical Center
Source: Broker OM
Valley Medical Center in Renton is expanding its main campus, adding
150,000 square feet of medical office space and a large parking garage.
Current employment of 4,000 employees will increase with the significant
planned expansion. Employment growth is expected to increase by an
average monthly rate of 55 employees per month.

Former Weyerhaeuser Campus Redevelopment
Source: Broker OM
Federal Way is anticipating a significant boost in employment with the redevelopment
of the 425-acre former Weyerhaeuser campus. The site, which includes 8 0 0,0 0 0 square
feet of existing office will be redeveloped by Industrial Realty Group into new distribution,
flex and office space. Kidney care company DaVita plans to build an office
employing nearly 2,000 people, taking some of this office space. The City of Federal
Way is an advocate for redeveloping the campus and creating jobs.

Construction, Tourism, and Retail
Source: Broker OM
Construction continues to be a major driver of employment in the Puget Sound area, with over 150
projects slated this year for downtown Seattle alone, made apparent by the 58 construction cranes—60%
more than any other U.S. city—hovering over the Seattle skyline.
The largest of these projects are the Sound Transit Link Light Rail extensions, rebuilding of the Alaskan Way
Viaduct, improvement of the I-405 corridor and significant expansion of the Sea-Tac Airport, in addition to
several major commercial, office and residential developments. The construction industry employs over
45,500 people and produces $7.5 billion in revenue annually. The tourism and retail sectors are also seeing
high revenue and employment numbers, with tourism generating 74,054 jobs and $7 billion in
expenditures, and retail generating 35,000 jobs.

Next Steps
Who Can Invest Minimum Investment
Accredited investors only. $100K. First time investors with Financial Attunement
Inc, $75K.
Investment Timeline
Expression of interest ASAP.
Investment documents now available.
Money wired ASAP.
Next Steps
Contact Christy Brock at christy@finatt.com or call (510) 282-5402 with questions or to ask for the
subscription documents and PPM.

The Hanover Investment Summary

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