Summary of RFI Investments

Summary of RFI Investments As of June 30, 2014 Asset/Location (Note/REO) San Francisco Apartment Portfolio I 7 San halICISCO. CA IREOt Acquisition Date Foreclosure Date 2124/2011 NIA Camellia Trace Apartments 3/24/2011 Jackson. TN (REM N/A Cherry Grove Apartments Jackson. TN (REM 3/24/2011 NIA Crystal Lake Apartments 10/11/2011 Pensacola. H. Now) I I/17/2011 Westchase Ranch Apartments Houston. TX (Note) 10/19/201 I II/1/2011 Foxboro Apartments 10/19/2011 Itousion. TX (Note) 10/20/2011 The Park Apartments Columbia. SC Mole) Shasta Crossroads Shopping Center Retlibov. CA iNota Carrington Place at Wildewood Apartments Columbia. SC (Nola) .10/19/201 II/1/2011 J/10/7017 1/17/2012 4/22012 Acquisition Price (110%l 523.5 6/30/2014 C061 Basis 1100%) 6/30/2014 Fair Value' (100%) 524.7 545.1 Cumulative Fair Value Adjustment 520.4 Cumulative Fair Value Adjustment % Change 82.6% Outstanding Debt (1009?) 514.2 RFI Ownership RFI's 6/30/2014 Cost Basis less Outstanding Debt RFI's Net Real Estate Values 20% Value'c 20% 52.1 $6.2 RFI's Unrealized Equity 5i Increase (Decrease)6 193.97E I1.3 11.6 14.22 2.6 22.2% 7.8 1005+ 3.8 6.4 67.8% 18.9 19.9 25.4 5.5 27.9% 13.1 100% 6.8 12.3 82.0% 7.7 7.9 13.1 5.2 65.8% 6.1 100% 1.8 7.0 286.7% 15.5 16.2 22.9 6.7 41.1% 11.4 100% 4.8 11.5 138.5% 6.5 6.4 9.3 2.9 45.2% 4.5 100% 1.9 4.8 148.3% 5.6 5.9 7.5 1.6 27.3% 4.0 100% 1.9 3.5 88.4% 7.4 8.0 I 1.3 3.3 41.2% 60% 2.5 3 4.4 2 79.8% 17.3 17.3 20.2 2.9 16.7% 12.5 100% 4.8 7.7 59.9% 4. The general partner of RH determines the "Fair Value" of its assets on a quarterly basis in accordance with GAAP. GAAP reporting requires that investments in unconsolidated joint ventures include other assets in addition to real estate in the Fair Value of the investments in such joint ventures. As used herein, however, Fair Value includes only the value of the real estate and excludes any value associated with other assets. such as cash held at the investment entity level. The Fair Value of real estate assets is de:maned utilizing a number of methodologies which include. but are not limited to. discounted cash flow analysis. capitalization of current or stabilized net operating income. and market sales comparables. Because considerable judgment is required in detemtining the estimates of value. amounts ultimately realized from investments may vary significantly front the Fair Values presented. S. Represents Mrs interest in 6/30/2014 Fair Value less 6/30/2014 Outstanding Debt Amount ("Net Real Estate Fair Value"). 6. Compares RFFs Net Real Estate Fair Value to RFFs 6/30/2014 Cost Basis less Outstanding Debt. 7. Excludes the allocated acquisition price of twelve assets in the Portfolio that have been liquidated. 8. RF1's 6/30/2014 Cost Basis less Outstanding Debt and Net Real Estate Fair Value exclude preferred equity of $3.9 million. PROPRIETARY & CONFIDENTIAL - DECEMBER 2014 9 EFTA01116021 Summary of RFI Investments As of June 30, 2014 Asset/Location (Note/REOI Acquisition Date Foreclosure Date Acquisition Price 1100%) 6/30/2014 Cost Basis 1100%) 6/30/2014 Fair Value9 (100%) Cumulative Fair Value Adjustment Como lath C Fair Value Adjustment Change Outstanding Debt 1004?} RFI Ownership REC. 6/311/2914 Cost Basis less Outstanding Debt RF1's Net Real Estate Fair Valueni RF1's Unrealized Equity % Increase (Deere-aw)' I Highlands at Alexander Pointe Apartments Charlotte. NC (Note) 2/28/2012 526.6 526.6 $31.2 54.6 17.2% S18.6 100% S8.0 $12.6 57.0% manoi 2 Portofino Apartments Pittsburg. CA (Note) 3/2/2012 4/13/2012 107/7017 N/A 4/24/2012 12 6 13.1 16.5 3.4 25.8% 9.0 100% 1011% 50% 25% 100% 90% 100% 4.1 7.5 81.5% Hampton Inn & Suites Woodbridge. VA (REO) 9.1 10.2 9.4 (0.8) (7.6%) 6.5 3.7 2.9 (21.1%) Meridian Village Shopping Center Bellingham. WA (REM 13 6 14.2 15.0 0.8 5.5% 9.6 2.3 2.7 16.8% N/A 7/20/2012 Presidential Tower Arlington. VA (Note) 48.2 63.8 59.4 (4.4) (6.8%) 45.3 4.6 3.5 (23.5%) 7/20/2012 7/24/2012 Vanderbilt Lodge Apartments Houston. 'EX (RE01 2.8 3.0 4.0 1.0 34.0% 2.0 1.0 2.0 103.2% N/A W29/2017 N/A I0P6/7017 Fairfield Inn & Suites Chantilly. VA (REO) 7.3 73 5.9 (1.8) (23.1%) 4.7 2.7 1.1 (58.9%) Somerset Apartments Bowdon. TX IRCOi 10.9 11.4 12.7 1.3 11.6% 7.5 3.9 5.2 34.5% N/A Seville Commons Shopping Center Arlington. TX i Note) 11/30/2012 10.1 10.9 12.1 12 11.0% 6.7 100% 4.2 5.4 28.9% 12/42012 San Francisco Apartment Portfolio II San Francisco. CA tRBO) 12/19/2012 16.4 16.8 19.4 2.6 15.9% 11.4 50% 2.7 4.0 49.5% N/A 9. The general partner of RF1 determines the "Fair Value" of its assets on a quarterly basis in accordance with GM P. GAM" reporting requires that investments in unconsolidated joint ventures include other assets in addition to real estate in the Fair Value of the investments in such joint ventures. As used herein, however, Fair Value includes only the whit of the real estate and excludes any value associated with other assets. such as cash held at the investment entity level. The Fair Value of real estate assets is determined utilizing a number of methodologies which include. but are not limited to. discounted cash flow analysis. capitalization of current or stabilized net operating income, and market sales comparables. Because considerable judgment is required in detemtining the estimates of value. amounts ultimately realize., tfrom investments may vaty significantly front the Fair Values presented. 10. Represents RF1's interest in 6/30/2014 Fair Value less 6/30/2014 Outstanding Debt Amount ("Net Real Estate Fair Value"). Compares RF1's Net Real Estate Fair Value to RF1's 6/30/2014 Con Basis less Outstanding Debt. PROPRIETARY & CONFIDENTIAL - DECEMBER 2014 10 EFTA01116022 Summary of RFI Investments As of June 30, 2014 RITs RF1's Acquisition Cumulative 6/3012014 Unrealized flats Acquisition 6/30/2014 6/30/2014 Cumulative Fair Value Outstanding Cost Basis less RETs Equity % Asset/l.twation Foreclosure Price Cost Basis Fair Value" Fair Value Adjustment Debt RFI Outstanding Net Real Estate Increase (Note/REOI Date 1100%) 1100%) 1100%) Adjustment % Change 1100%) Ownership Debt Fair Value" 1Decrease)14 Audubon Park Apartments 12/31/2012 57.4 57.5 $10.6 $3.1 41.1% 55.4 100% $2.1 55.2 147.1% Arhogton.7X<Notei 1/15/2013 Cambridge Place Apartments 12/31/2012 4.9 9.5 3.7 63.1% 3.7 100% 2.1 5.8 171.6% Houston. TX (Note) 1/15/2013 Hilltop Apartments 17/1117017 8.(1 8.4 11.0 2.6 30.7% 5.9 100% 2.5 5.1 101.9% North Ittchl.uul Hills. TX (Note) 1/152013 Knollwood Apartments 12/31/2012 17.5 18.2 23.8 5.6 30.9% 13.2 100% 5.0 10.6 111.9% tlatelwood. MO I Nt.lc I I/15/2013 Rollingwood Apartments 12/31/2012 12.0 12.5 14.9 2.4 19.2% 8.8 100% 3.7 6.1 64.5% Riciunond. VA 'Note) 1/112013 II North at White Oak 12/312012 Apartments 38.9 41.5 46.9 5.4 13.0% 29.2 100% 12.3 17.7 43.8% I/11/2013 Rtclunond. VA (Note) Parkway Medical Plaza )1151201.3 Henderson. NV MO) N/A 14.0 14.5 14.6 0.1 0.1% 10.3 87.51% 3.7 3.8 0.4% Steadfast Mall Portfolio I/16/2013 Everett and Federal Way. WA 134 100.2 133.9 139.3 5.4 4.0% 85.2 1037% 5.0 5.6 11.0% WA Patty) Allan at the Lakes 2128/2013 Apartments 53.7 56.0 60.7 4.7 8.3% 41.0 95% 14.3 18.7 31.0% 4/5/2013 Las Vegas. NV (Note) 12 The general partner of RFI determines the "Fair Value" of its assets on a quarterly basis in accordance with GAM). GAAP reporting requires that investments in unconsolidated joint ventures include other assets in addition to real estate in the Fair Value of the investments in such joint ventures. As used herein, however. Fair Value includes only the value of the real estate and excludes any value associated with other assets. such as cash beide)? the investment entity level. The Fair Value of real estate assets is determined utilizing a number of methodologies which include. but are not limited to. discounted cash flow analysis. capitalization of current or stabilized net operating income. and market sales comparables. Because considerable judgment is required in detemtining the estimates of value. amounts ultimately realized from investments may vary significantly from the Fair Values presented. 13 Represents RF1's interest in 6/30/2014 Fair Value less 6/30/2014 Outstanding Debt Amount ("Net Real Estate Fair Value"). 14 Compares RFFs Net Real Estate Fair Value to RFFs 6/30/2014 Cost Basis less Outstanding Debt. PROPRIETARY & CONFIDENTIAL - DECEMBER 2014 jI EFTA01116023 Summary of RFI Investments As of June 30, 2014 F I's REt's Acquisition Cumulative 6/31)/21)14 Unrealized Date Acquisition 6/30/2014 6/30/2014 Cumulative Fair Value Outstanding Cost Basic leas RFD's Equity % Asset/Location Foreclosure Price Coot Basic li Fair Value Fair Value Adjustment Debt NEI Outstanding Net Real Estate Increase (Note/RE:01 Date 1100%) 1100%1 1100%) Adjustment % Change 1100%1 Ownership Debt Fair Value16 (Decrease)" Bridgeport Center 4/4/2013 Tampa. FL (3'' Parry, NIA 523.5 $25.1 $25.6 $0.5 1.8% $17.7 90% $6.7 57.1 5.9% PGA Plaza Shopping Center 7/212013 23.0 34.1) 35.1 1.1 3.3% 23.7 75% 7.7 8.6 10.9% Palm Beach Gardens. FL (Note) 7/11/2013 Cedarbrook Apartments 8/1/2013 63 6.9 7.7 0.8 11.9% 4.0 100% 2.9 3.7 27.9% Dallas. TX (Note) 8/1/2013 Park on Rosemeade 8/1/2013 Apartments 6.7 7.0 9.1 2.1 30.1% 4.1 100% 2.9 5.0 72.8% 8/1/2013 Dall.o. TX 'Note, Shadow Creek Apartments §0Mal 9.6 10.0 11.0 1.0 9.4% 5.8 100% 4.2 5.2 22.1% North Itahl.md lb Ils. TX (Note) 8/112013 The Pinnacle Apartments 8/1/2013 5.8 6.1 7.1 1.0 16.4% 3.7 1C4)% 2.4 3.4 41.8% IxwassIle. TX 'Note! 8/1/2013 Westwood Village 8/1)2013 Apartments 10.9 11.7 12.3 0.6 5.4% 7.0 100% 4.7 5.3 13.5% bums. TX (Note) 8/1120B Crystal Bay Apartments 8/1/2013 Welder. TX (Nide. 8/1/2013 11.2 12.4 13.0 0.6 4.6% 7.4 100% 5.0 5.6 11.3% Savoy Manor Apartments 8/ 112013 5.4 6.1 7.3 1.2 19.8% 3.4 180% 2.7 3.9 45.0% Houston. TX (Moan 8/1)2013 Southpoint Apartments 8/1/2013 Nuristan. TX (Note) 8/1120B 7.2 7.8 9.1 13 15.6% 5.2 100% 2.6 3.9 46.6% 15. The general partner of RF1 determines the "Fair Value" of its assets on a quarterly basis in accordance with GAAR. CAM" reposing requires that investments in unconsolidated joint ventures include other assets in addition to real estate in the Fair Value of the investments in such joint ventures. As used herein. however. Fair Value includes only the value of the real estate and excludes any value associated with other assets. such as cash held at the investment entity level. The Fair Value of real estate assets is determined utilizing a number of methodologies which include. but are not limited to. discounted cash flow analysis. capitalization of current or stabilized net operating income. and market sales comparables. Because considerable judgment is required in determining the estimates of value. amounts ultimately realized from investments may vary significantly from the Fair Values presented. 16. Represents RFD's interest in 6/30/2014 Fair Value less 6/30/2014 Outstanding Debt Amount ("Net Real Estate Fair Value"). 17. Compares RFD's Net Real Estate Fair Value to RFD's 6/30/2014 Cost Basis less Outstanding Debt. PROPRIETARY & CONFIDENTIAL - DECEMBER 2014 12 EFTA01116024 Summary of RFI Investments As of June 30, 2014 RF1's RF1's Acquisition Cumulative 6/30/2014 Unrealized Date Acquisition 6/30/2014 6/30/2014 Cumulative Fair Value Outstanding Cost Basis less RFI's Equity Asset/Location Foreclosure Price Cost Basis Fair Value" ' Fair Value Adjustment Debt RFT Outstanding Net Real Estate Increase (Note/REM Date (100%) 1100%) (100%1 Adjustment ele Change 1100%) Ownership Debt Fair Value19 (Decrease)2° Wolf Creek Apartments 8/112013 54.6 55.4 $8.6 S3.2 61.0% 53.1 100% $2.3 55.5 144.2% Houston. TX INote) 8/1/2013 20 North Orange 8/2/2013 28.3 26.9 32.6 5.7 21.1% 15.2 100% 11.8 17.5 48.4% Orlando. (Now) TBD 7000 Central Park 9/11/2013 56.6 57.2 59.9 2.7 4.7% 30.0 60% 11.3 2t 13.0 2 t 14.2% Atlanta. GA (Note) 11/22/2013 Meridian Plaza 10/1/2013 11.6 12.4 14.5 2.1 17.3% 7.1 5U% 2.6 3.7 40.9% Cannel. IN 'Note) 10/31/2013 Airpark Business Center 10/7/2013 NaNhv IIle. TN (Note) 10/7/2013 62.8 63.8 64.7 0.9 1.3% 46.6 64.87% 11.2 11.8 4.8% 7025 North Scottsdale Road 11/14/2013 18A) 18.3 18.4 0.1 0.8% 11.0 100% 7.3 7.4 2.1% Nvothtble. AZ (Nola) 11/15/2013 Windmill Landing 11/21/2013 Apartments 12.2 12.1 13.0 0.9 7.0% 9.9 100% 2.3 3.1 37.8% 1/7/2014 HouMon. TX (Nott Paces Village Apartments 12/11/2013 12.3 123 12.4 -0.1 -0.4% 9.1) 100% 3.5 3.4 -13% the.emboro. NC (RHO) N/A TotaUWeighted Average $844.1 $929.6 $1,047.3 5117.1 12.6% $6115 $212A 8306.4 44.1% 18. The general partner of RF1 determines the "Fair Value" of its assets on a quarterly basis in accordance with GAAP. GAAP reporting requires that investments in unconsolidated joint ventures include other assets in addition to real estate in the Fair Value of the investments in such joint ventures. As used herein. however. Fair Value includes only the value of the real estate and excludes any value associated with other assets. such as cash held at the investment entity level. The Fair Value of real estate assets is determined utilizing a number of methodologies which include. but are not limited to. discounted cash flow analysis. capitalization of current or stabilized net operating income. and market sales comparables. Because considerable judgment is required in determining the estimates of value. amounts ultimately realized from investments may vary significantly from the Fair Values presented. 19. Represents Mrs interest in 6/30/2014 Fair Value less 6/30/2014 Outstanding Debt Amount ("Net Real Estate Fair Value"). 20. Compares RFFs Net Real Estate Fair Value to RFFs 6/30/2014 Coat Basis less Outstanding Debt 21. RF1's 6/30/2014 Cost Basis less Outstanding Debt and Net Real Estate Fair Value exclude the outstanding mortgage debt as well as preferred equity• of 58.3 million PROPRIETARY & CONFIDENTIAL - DECEMBER 2014 13 EFTA01116025 RFI Realized Investments PROPRIETARY & CONFIDENTIAL - DECEMBER 2014 14 EFTA01116026 Washington Business Park • In September 2012, RFI (75%), in a joint venture with The Artery Group (15%) and NAI Michael (10%), acquired the defaulted loan secured by Washington Business Park for $42.0 million. The business plan included foreclosing on the collateral, replacing management, reducing expenses, re- leasing the property and decreasing the loss to lease. • Washington Business Park consists of nine flex office/industrial buildings in Lanham, Maryland. • The property, while well located, was over levered, undermanaged (82.8% occupied) and over expensed. • Joint venture partners included the party (NAI Michael) that originally aggregated the land for the office/industrial park and managed the property to market occupancy until 2007. • In December 2012, the borrower made an attractive proposal to purchase the loan. The borrower appeared to be motivated by tax concerns and uncertainties related to a potential foreclosure. Given the attractiveness of the proposal, the joint venture made the decision to permit a discounted payoff of the mortgage note rather than proceed with the foreclosure. RFI Acquisition Sale Purchase Sale Equity RFI Total Gross Gross Asset/Location Sq. Ft. Date Date Price Price Contribution Proceeds22 Equity Multiple=' IRR23. 24 Washington Business Park 573.397 9/7/2012 12/5/2012 542.000.000 $51.500.000 511.000.000 $18.718.595 N/Nt Lanham. MD 22. RFI Total Proceeds are inclusive of sale proceeds and interim cash flows. 23. A portion of the RFI Equity Contribution was temporarily financed using RF1's subscription facility and. as a result. the gross equity multiple presented herein is based on the amount of equity that was called from investors. The gross equip• multiple is based upon the REI equity allocated to the asset and includes cash flow generated by the asset while REI had an interest in the asset but does not reflect deductions for management fees. fund expenses (which are described in other documents provided to potential investors upon request) or the carried interest paid or payable to the RFI's Investment Manager or General Partner which. in the aggregate. may be substantial and, accordingly. such figures do not reflect the actual returns that would ultimately be realized by an investor.. 24. "N/M" stands for "not meaningful". The IRR is artificially high due to the short term hold period of the investment. which was not a parr of the investment manager's business plan. However. for purposes of transparency. the gross MR was 5,644.1%. PROPRIETARY & CONFIDENTIAL - DECEMBER 2014 15 EFTA01116027 Cotton Exchange Hotel • In February 2013, RFI (80%), in a joint venture with The Artery Group (20%), acquired the non-performing note secured by the Cotton Exchange Hotel for $13.5 million. The business plan included foreclosing on the collateral in June 2013 and redeveloping the property. • The Cotton Exchange Hotel is extremely well located, within a few minutes walk of the French Quarter. However, it was grossly underrnanaged under the prior flag due to poor capitalization. • During the four month holding period, an operating plan was put in place to re-flag the hotel as a Marriott Fairfield Inn & Suites, as well as to redevelop the hotel with several million dollars of additional capital expenditures. • The business plan was proceeding as scheduled, but when the foreclosure sale was held in June 2013, a third party was willing to pay a higher price. • The asset was unlevered. Had the business plan proceeded, the amount of equity would likely have been reduced to approximately 25% of value post foreclosure and redevelopment which is significantly lower than the percentage of equity used to acquire the asset. RFI A CliLliSiii1/11 Sale Pt] chase Sale Equity RFI Total Gross Grass Asset/Location ILumis Date Date Price Price Contribution Proceed.s2s Equity Multiple's IRR'c•" Cotton Exchange Hotel 223 2/1/2013 7/2/2013 S13.500.000 S17.800.000 411,703,780 S14.472.138 1.24x N/Nt New Orleans. LA 25. RFI Total Proceeds are inclusive of sale proceeds and interim cash flows. 26. A portion of the RH Equity Contribution was temporarily financed using RR 's subscription facility and, as a result, the gross equity multiple presented herein is based on the amount of equity that was called from investors. The gross equity multiple is based upon the RP! equity allocated to the asset and include cash flows generated by the asset while RH had an interest in the asset but does not reflect deductions for management fees, fund menses (which are described in other documents provided to potential investors upon request) or the carried interest paid or payable to the RFT s Investment Manager or General Partner which, in the aggregate. may be substantial and. accordingly. such figures do not reflect the actual returns that would ultimately be realized by an investor... 27. "AVM" stands for "nor meaningful". The !RR is artificially high due to the short term hold period of the investment which was not a part of the investment manager's business plan. However, for purposes of transparency. the gross IRR was 59.1%. PROPRIETARY & CONFIDENTIAL - DECEMBER 2014 16 EFTA01116028 Cary Brook Apartments • In October 2010, RFI acquired Cary Brook Apartments for $15.2 million. The business plan included increasing both rents and occupancy to market levels. • Before acquisition, Cary Brook underwent a $1.3 million renovation that included, but was not limited to, the clubhouse, leasing office and fitness center. • Shortly after acquisition, RFI made in excess of $1.0 million of additional capital improvements to enhance the desirability of the property. • RFI was successful in executing its business plan well in advance of its goal by increasing both rent and occupancy to market levels. • In February 2014, RFI sold Cary Brook for $24.3 million, which exceeded the year five underwritten disposition price of approximately $18.9 million. RFI Acquisition Sale Purchase Sale Equity RFI Total Gross Gross Asset/Location Units Date Date Price Price Contribution's Proceeds" Equity Multiple" IRR" Cary Brook Apartments" -1.94‘ 43.5%. 360 10/28/2010 2/18/2014 S15.220.000 $24.300.000 54.939.103 $14.518.458 Cary. NC 28. RFI acquired Cary Brook in October 2010 as a "Warehoused Investment" (as contemplated by RFI's limited partnership agreement) before RFI's initial closing (which did not occur until August 2011) through first mortgage financing of $11.600.000 plus a loan from RFI's general partner in the amount of $4939.103 (the "Warehouse Loan- ). representing what would have otherwise been RFI's equity. In August 2011. RFI held its initial closing and repaid the Warehouse Loan utilizing the proceeds of a capital call equal to the Initial Equity of 54.939.103 million plus $371.276 of interest on the Warehouse Loan. 29. The RFI Equity Contribution shown in the table above excludes the $371.276 of interest on the Warehouse Loan paid by RFI in August 2011. 30. RFI Total Proceeds are inclusive of sale proceeds and interim cash flows 31. The gross equity multiple and gross IRR presented on this page are based upon the acquisition date of October 2010 (with the $4.939.103 Warehouse Loan being treated as if it were equity of RFObecause that is the date that RFI acquired. and the investment manager commenced management of. Cary Brook Apartments. Accordingly. the investment manager believes that the October 2010 acquisition date most accurately reflects the beginning of the investment period. The gross equity multiple and gross IRR are based upon the RFI equity allocated to the asset and include cash flows generated by the asset while RFI had an interest in the asset but does not reflect deductions for management fees. fund expenses (which are described in other documents provided to potential investors upon request) or the carried interest paid or payable to the RFI's Investment Manager or General Partner which. in the aggregate. may be substantial and. accordingly. such figures do not reflect the actual returns that would ultimately be realized by an investor. PROPRIETARY & CONFIDENTIAL - DECEMBER 2014 17 EFTA01116029 Wateridge Plaza • In March 2011, RFI (20%), in a joint venture with Beacon Capital Partners LLC (80%), acquired Wateridge Plaza for $50.5 million. Wateridge Plaza suffered from a lack of capital investment by the previous owners. • Although Wateridge Plaza was fully occupied, the major tenant, which occupied approximately 70% of the property, had a lease rate more than 50% below market. The prior owner elected not to provide the capital for tenant improvements, and instead signed a lease that had an initial rent significantly below market with a subsequent step up to market in 2013. • The joint venture infused capital to provide both mechanical and cosmetic upgrades to the Class A office complex. In March 2014, the joint venture sold Wateridge Plaza to an unsolicited buyer for $72.5 million, which exceeded the year five underwritten disposition price of $70.1 million. RFI Acquisition Sale Purchase Sale Equity RFI Total Gross Gross Asstl/Location Sq. Ft. Date Date Price Price Contribution" ProceedsM Equity Multiple" IRR" Wateridge Plaza" 278.787 3/24/2011 3/13/2014 550.500.000 572,500,0(X) $3,697,410 $8,324.476 7.75N 32.4% San Diego. CA 32. RFI acquired a 20% joint venture interest in %Partridge Plaza in March 2011 as a "Warehoused Investment" (as contemplated by RFI's limited partnership agreement) before RFI's initial closing (which did not occur until August 20111 through first mortgage financing of 535.000.000. joint venture equity. and a loan for its 20% interest from RFI's general partner in the amount of 53.697,410 (the "Warehouse Loan"). representing what would have otherwise been RR's equity. In August 2011. RFI held its initial closing and repaid the Warehouse Loan utilizing the proceeds of a capital call equal to the Initial Equity of 53.697.410 plus 5135.712 of interest on the Warehouse Loan. 33. The RFI Equity Contribution shown in the table above excludes the 5135.712 of interest on the Warehouse Loan paid by RFI in August 2011. 34. RR Total Proceeds are inclusive of sale proceeds and interim cash flows. 35. The gross equity multiple and gross !RR presented on this page are based upon the acquisition date of March 2011 (with the $3.697.410 Warehouse Loan being treated as if it were equity of RFI) because that is the date that RFI acquired. and the investment manager commenced management of. Wateridge Plaza. Accordingly. the investment manager believes that the March 2011 acquisition date most accurately reflects the beginning of the investment period. The gross equity multiple and gross IRR are based upon the RR equity allocated to the asset and includes rash floc generated by the asset while RR had an interest in the asset but does not reflect deductions for management fees. fund expenses (which are described in other documents provided to potential investors upon request) or the carried interest paid or payable to the RFI's Investment Manager or General Partner which. in the aggregate. may be substantial and. accordingly, such figures do nor reflect the actual returns dun would ultimately be realized by an investor. PROPRIETARY & CONFIDENTIAL - DECEMBER 2014 18 EFTA01116030 20 North Orange • In August 2013, RFI acquired the non-performing note secured by 20 North Orange, a 267,233 square foot office building in Orlando, Florida for $28.3 million. The business plan included foreclosing on the collateral, cure deferred maintenance and leasing the building up to market occupancy levels. • During the foreclosure process, RFI, through the receiver, maintained the property and reduced certain operating expenses, which increased the NOI. • In September 2014, the borrower made an attractive proposal to purchase the loan. Given the attractiveness of the proposal, RFI made the decision to permit a discounted payoff of the mortgage note rather than proceed with the foreclosure. RFI Acquisition Sate Purchase Sale Equity RFI Total Grass Grass Asset/Location Sq. Et. Date Date Price Price Contribution Proceede Equity Multiples' IRR-s7 20 North Orange 267.233 87712013 9/18/2014 528.250.000 534.750.000 S I 5.835.000 821.884.268 1.38x 33 2c Orlando, FL 36. RFI Total Proceeds are inclusive of sale proceeds and interim cash flows. 37. The gross equity multiple and gross IRR are based upon the RFI equity allocated to the asset and include cash flows generated by the asset while RFI had an interest in the asset but does not reflect deductions for management fees. fund expenses (which are described in other documents provided to potential investors upon request) or the carried interest paid or payable to the Mrs Investment Manager or General Partner which. in the aggregate. may be substantial and. accordingly. such figures do not reflect the actual returns that would ultimately be realized by an investor. PROPRIETARY & CONFIDENTIAL - DECEMBER 2014 19 EFTA01116031 Shasta Crossroads Shopping Center • In January 2012, RFI (60%), in a joint venture with Weingarten Realty Investors (40%), acquired the non-performing note secured by Shasta Crossroads Shopping Center for $7.4 million. The joint venture acquired title via foreclosure. At acquisition, Shasta Crossroads Shopping Center was 61% occupied. • At acquisition, one of the center's largest suites was occupied by a tenant paying a below-market lease rate signed by the previous owner. Because the lease was not given lender consent, it was "foreclosed out" at the time of foreclosure. The joint venture's business plan was to renegotiate the below-market lease and lease the vacant in-line space at the shopping center. • The joint venture was able to renegotiate the foreclosed out lease and lease the vacant in-line space well in advance of underwritten projections, achieving 100% occupancy within one year of acquisition. RE1 Cross Asset/Location Sq. Ft. Acquisition Date Sale Date Purchase Price Sale Price Equity Contribution RFI Total Proceeds" Equit!, Multiple-'= Cross I It R." Shasta Crossroads Shopping Center 75,783 1/10POP 10/21/2014 57.380.000 511.600.000 52.609.384 55.794.785 2.22x 37.1% Redding. California 38. RFI Total Proceeds are inclusive of sale proceeds and interim cash flows. 39. The gross equity multiple and gross IRR are based upon the RFI equip• allocated to the asset and include cash flows generated by the asset while RFI had an interest in the asset but does not reflect deductions for management fees. fund expenses (which are described in other documents provided to potential investors upon request) or the carried interest paid or payable to the RFI's Investment Manager or General Partner which. in the aggregate. may be substantial and, accordingly, such figures do not reflect the actual returns that would ultimately be realized by an investor. PROPRIETARY & CONFIDENTIAL - DECEMBER 2014 20 EFTA01116032 Crystal Lake Apartments • In October 2011, RFI acquired Crystal Lake Apartments for $7.7 million. The business plan included increasing both rents and occupancy to market levels, as, under prior management, Crystal Lake Apartments was approximately 63% occupied. • RFI oversaw a capital improvement program to enhance the Crystal Lake's curb appeal and implemented marketing/leasing strategies aimed at rehabilitating Crystal Lake's reputation and attracting and maintaining a more desirable resident base. • RFI was successful in executing its business plan two years prior to the estimated hold period by increasing both rent and occupancy to market levels. RFI Acquisition Sale Purchase Sale Equity RFI Total Gross cross Asset/Location Units Date Date Price Price Contribution Proceeds'. Equity Multiple" IRR4' Crystal Lake Apartments 224 10/11/2011 I I/20/2014 57.742.590 S15.090.000 $2.425.499 S10.145.105 -1.1tix 73.3% Pensacola. FL 40. RFI Total Proceeds are inclusive of sale proceeds and interim cash flows. 41. The gross equity multiple and gross 1RR are based upon the RF1 equity allocated to the asset and include cash flows generated by the asset while RFI had an interest in the asset but does not reflect deductions for management fees. fund expenses (which are described in other documents provided to potential investors upon request) or the carried interest paid or payable to the Mrs Investment Manager or General Partner which. in the aggregate. may be substantial and, accordingly. such figures do not reflect the actual returns that would ultimately be realized by an investor. PROPRIETARY & CONFIDENTIAL - DECEMBER 2014 21 EFTA01116033 RFI Partially Realized Investments — Meridian Plaza I • In October 2013, RFI (50%), in a joint venture with RSF Partners Inc. (40%) and Zeller Realty Group (10%), acquired the non performing note secured by Meridian Plaza, a three office building complex in Cannel, Indiana, for $15.7 million ($51 per square foot). The business plan included foreclosing on the collateral and leasing the buildings up to market occupancy levels. • At acquisition, the average occupancy of all three buildings was 56.2%. Building I had the lowest occupancy at 17.6%. The joint venture originally intended to implement a $1.0 million capital improvement plan at Building I. • In January 2014, the joint venture sold Building I, which had the lowest occupancy of the three buildings, to a local owner/user for $6.6 million ($95 per square foot). • The remaining buildings, Meridian Plaza II and III, are 236,557 square feet and 66.9% occupied, in the aggregate and have an allocated cost of $39 per square foot. Ara RFI Acquisition Sale Purchase Sale Equity RH Total Gross Grass Asset/I-oration Sq. Ft. Date Date Price Price Contribution Proceeds42 Equity Multiple.' IRR43." Meridian Plaza I 69.482 10/1/2013 1/23/2014 54.1191.956 S6.600.885 $2.085.227 $3.077.245 1.48s MN! Cannel. IN 42. RFI Total Proceeds are inclusive of sale proceeds and interim cash flows. 43. The gross equity multiple and gross IRR are based upon the RFI equip• allocated to the asset and include cash flows generated by the asset while RFI had an interest in the asset but does not reflect deductions for management fees. fund expenses (which are described in other documents provided to potential investors upon request) or the carried interest paid or payable to the RFI's Investment Manager or General Partner which. in the aggregate. may be substantial and, accordingly. such figures do not reflect the actual returns that would ultimately be realized by an investor. 44. "N/M" stands for "not meaningful". The IRR is artificially high due to the short term hold period of the investment, which was not a pan of the investment manager's business plan. However. for purposes of transparency. the gross MR was 247.6%. PROPRIETARY & CONFIDENTIAL - DECEMBER 2014 22 EFTA01116034 RFI Partially Realized Investments - San Francisco Multifamily Portfolio I • In February 2011, RFI (20%), in a joint venture with PCCP LLC (80%), acquired the San Francisco Multifamily Portfolio I for $57.3 million, which originally consisted of 17 individual rent controlled, multifamily properties with 342 units in the aggregate. • The total acquisition cost, including closing costs, was approximately $175,000 per unit. • Much of the portfolio had not been renovated for 40 years and required capital upgrades, allowing for significant upside potential upon unit turnover (>60% ROI in some cases for capital expenditures). • The business plan called for selling off some of the smaller properties in the earlier portion of the investment hold period. • Fourteen properties have been sold. PROPRIETARY & CONFIDENTIAL - DECEMBER 2014 23 EFTA01116035 RFI Partially Realized Investments — San Francisco Multifamily Portfolio I (San Francisco Multifamily Portfolio I continued) • The following properties have been sold pursuant to the business plan into a strong market: Asset/Location I nth Date Sale Date Purchase Price Pore hai,e l'rice/ Unit Salt. I Sale Price/ Unit RH Equity Contribution" RFI Total Proceeds47 Gross Equity Multiple 48 Gross IRE" San Francisco Multifamily Portfolio 145 San Francisco. CA 2035 I50, Street 6 2/24/2011 6/10/2011 51.400.000 5233.333 51.500.000 5250O)0 5108.861 598.464 0.90x (11.5%) 55 Dolores Street 6 2/24/2011 12/2012012 1.375.000 229.167 2.550.000 425.000 87.333 239.616 2.74x 74.0% 349 Cherry Street 6 2/24/2011 5/16/2013 2.250.000 375.000 3250.000 541.667 204.019 345.943 1.70x 26.8% 654 Central Avenue 7 2/24/2011 6/28/2013 1.365.000 195.000 2.575.000 367.857 70.139 266.134 3.79x 76.7% 1080 Post Street 15 2/24/2011 7/2/2013 1.800.000 120.000 2,375.000 158.333 159.750 240.881 1.5Ix 19.1% 295 19• Avenue II 2/24/2011 9/27/2013 2,600.000 236.361 4.225.000 384.091 240.892 497.107 2.06x 32.2% 2455 Polk Street 14 2/24/2011 11/19/2013 3.390.000 242.143 4.997.000 356.929 275.094 573.079 2.08x 30.8% 3830 Divisadero Street 12 2/24/2011 12/2012013 4,100.000 341.667 8.150.000 679.167 252249 956.480 3.79x 60.4% 3436 Pierce Street 12 2/24/2011 4/30/2014 3.720.000 310.000 7.500.000 625.000 228.933 863.658 3.77x 51.8% 1035 Pine Street 38 2124/2011 6/102014 5.700.000 150.0(X) 12.700.000 334.211 347.233 1.574.503 4.53x 58.3% 1160 Pine Street 15 2/24/2011 6/17/2014 1.500.000 100.0(X) 4.000.000 266.667 106.477 560248 5.26x 65.1% 2775 Market Street 26 2/24/2011 6124/2014 4.550.000 175.000 9.995.000 384.423 168.360 1.147.197 6.81x 77.9% 775 Geary Street 36 2/24/2011 7/10/2014 4.140.000 115.000 9.340.000 259.444 308.127 1.229.417 3.99x 50.7% 1200 Valencia Street IS 2/24/2011 9/16/2014 3.700,000 205.556 9,400,000 522.222 249.714 1.271.254 5.09x 57.9% Total 222 $41,590,000 $187,342 $82,557,000 $371,878 $2,807,181 $9,863,981 3.51x 51.9% 45. RFI acquired a 20% joint venture interest in San Francisco Multifamily Portfolio I in February 2011 as a "Warehoused Investment•• (as contemplated by RFI's limited partnership agreement) before RR's initial closing (which did not occur until August 2011) through first mortgage financing of 540.000.000. joint venture partner equity and a loan for its 20% interest from RFI's general partner in the amount of $3,900.000 (the "Warehouse Loan") for the San Francisco Multifamily Portfolio 1, representing what would have otherwise been RFI's equity. In August 2011. RFI held its initial closing and repaid the Warehouse Loan utilizing the proceeds of a capital call equal to the Initial Equity of 53.900.000 plus $170,703 of interest on the Warehouse Loan. 46. The RFI Equity Contribution shown in the table above excludes the allocated amount of the 5170.703 of interest on the Warehouse Loan paid by RFI in August 2011. 47. RFI Total Proceeds do not include any interior cashflows attributable to these sold assets. 48. The gross equity multiple and gross IRR presented on this page are based upon the acquisition date of February 2011 (with the $3.9 million Warehouse Loan being treated as if it were equity of RFI) because that is the date that RFI acquired. and the investment manager commenced management of. San Francisco Multifamily Portfolio I. Accordingly. the investment manager believes that the February 201! acquisition date most accurately reflects the beginning of the investment period. The gross equity multiple and gross IRR shown are based upon the RFI equity allocated to these sold assets and include only disposition proceeds (the calculation does nor include any cash flow prior to the sales that were attributable to these sold assets). and does not reflect deductions for management fees. fund expenses (which are described in other documents provided to potential investors upon request) or the carried interest paid or payable to the RFI's Investment Manager or General Partner which. in the aggregate. may be substantial and. accordingly, such figures do not reflect the actual returns that would ultimately be realized by an investor. PROPRIETARY & CONFIDENTIAL - DECEMBER 2014 24 EFTA01116036