Property Report | February 2017RADCO – Cheshire Bridge, LLLPPresented March 2017

Dear Investor,

I am very pleased to share the February investor report for Radius Cheshire Bridge, the 318-unit and Class A-minus apartment community in Atlanta, GA.

In our second full month of ownership, we experienced a well-documented occupancy dip and leasing slowdown. This was caused by increasing asking rents well beyond where they needed to be and not fully utilizing the marketing budget from day one. We have since undertaken numerous initiatives to increase leasing activity and property traffic. As a result, move-ins and new leases have picked up substantially in March and the property is headed back in the right direction. On another positive note, every expense category was within budget in February. Looking forward, we achieved $200 to $240 premiums on our renovated units that leased in March. I have included pictures of our new renovated product at the end of the report. The pool is almost finished and the clubhouse remodel will begin in a couple weeks.

I have another reporting change to share. Instead of declaring a quarterly distribution amount in your regular monthly investor reports, going forward you will receive a separate email communication following the close of a quarter that will advise you of your upcoming distribution amount. This will not impact the timing of your distributions. You can expect to receive a communication regarding the 1Q17 distribution in mid-April.

Warmest Regards,

• $6 Increase from January• $1,292 as of the writing of this

report

• Decrease from January as wetake units offline for renovation

• 0 move-ins, 12 move-outs, and15 renewals

• 9.1% Avg. Renewal Increase

• Strong 1.79x debt servicecoverage ratio

• Three payroll periods inJanuary

• Cable Income/Expensewere not included inproforma

• Decrease from January causedby higher Vacancy

• Experiencing submarket-wideseasonal slowness

Radius Cheshire Bridge | February 2017

VARIANCE EXPLANATIONS & CAPITAL PROJECTS UPDATE• Total Rental Income - Unfavorable to budget due to higher Vacancy than expected.• Other Income – Unfavorable due to no Application or Admin Fees and less Water income.• Payroll – Favorable to budget due to fewer Rental and Renewal Bonuses paid out.• R&M - Favorable to budget due to less Cleaning Labor and Interior Paint Service.

• 12 renovated units complete, 12 in progress (5 will be complete next week).• 5 of 8 buildings have been pressure washed, painted and had trim repaired.• Gutter repairs throughout the property are in progress.• The reshaping of the pool is complete – tile work is in progress.• Renovation of the model unit is in progress – furniture 2-3 weeks away.• Landscaping along critical path and retaining wall at entrance are complete.

Total Move-Ins

ClassicMove-Ins

RenovatedMove-Ins Renewals

Volume 0 0 0 15Average Rent $0 $0 $0 $1,398

$0$200$400$600$800$1,000$1,200$1,400$1,600

02468

10121416

MOVE-INS & RENEWALS VolumeAverage Rent

16.4%CURRENTOCCUPANCY EXPOSUREPRE-LEASED89.60%

$1,287 90.25% $423,830 $102,123 Account Actual Budget∆ Actual to

Budget YTD Actual YTD Budget∆ Actual to

Budget YTD Proforma∆ Actual to Proforma

Rental Income $367,220 $382,332 ($15,112) $747,698 $766,704 ($19,006) $381,914 ($14,694)

Other Income $56,610 $63,986 ($7,376) $133,184 $126,650 $6,534 $44,795 $11,815 Total Income $423,830 $446,318 ($22,488) $880,882 $893,354 ($12,472) $426,709 ($2,879)

Payroll $32,700 $35,394 $2,694 $81,118 $87,275 $6,157 $34,829 $2,129 General & Administrative $28,785 $29,593 $808 $62,705 $62,636 ($69) $5,963 ($22,823)

Management Fee

$12,668 $13,389 $721 $25,742 $26,800 $1,058 $12,801 $134

Advertising & Marketing $3,943 $4,684 $741 $6,143 $8,018 $1,875 $5,963 $2,020

Utilities $34,028 $35,330 $1,302 $67,084 $68,561 $1,477 $30,634 ($3,394)Taxes & Insurance

$78,790 $79,000 $210 $157,580 $158,000 $420 $78,914 $124

Repairs & Maintenance $11,673 $17,960 $6,287 $23,286 $33,148 $9,862 $17,888 $6,215

Operating Expenses $202,586 $215,350 $12,764 $423,657 $444,438 $20,781 $186,990 ($15,596)

Net Operating Income $221,243 $230,968 ($9,725) $457,225 $448,916 $8,309 $239,719 ($18,475)

Debt Service $119,121 $121,557 $2,436 $250,707 $256,138 $5,431 $119,669 $549 NOI After Debt $102,123 $109,411 ($7,288) $206,518 $192,778 $13,740 $120,049 ($17,927)

Capital Improvements $3,209 $4,910 $1,701 $9,882 $9,120 ($762) $6,625 $3,416

Partnership Expenses $5,509 $5,510 $1 $11,018 $11,020 $2 $5,300 ($209)

Net Income $93,405 $98,991 ($5,586) $185,618 $172,638 $12,980 $108,124 ($14,719)

January FebruaryCurrent Year $92,213 $93,405

$91,600$91,800$92,000$92,200$92,400$92,600$92,800$93,000$93,200$93,400$93,600

NET INCOME

January FebruaryCurrent Year $235,981 $221,243

$210,000

$215,000

$220,000

$225,000

$230,000

$235,000

$240,000

NET OPERATING INCOME

January FebruaryCurrent Year $457,052 $423,830

$400,000

$410,000

$420,000

$430,000

$440,000

$450,000

$460,000

REVENUE

318 Units | Atlanta, GA | Year 1 Proforma – December 2017

IN-PLACE RENT

NOI AFTER DEBT

REVENUEAVERAGEOCCUPANCY

89.93%

Underwr. StartingRent Dec 2016 Jan 2017 Feb 2017 Year 1 Pro Forma

(December 2017)Average In-Place Rent $1,279 $1,275 $1,281 $1,287 $1,407Revenue Per Unit $- $1,437 $1,333Average Occupancy 96.87% 92.99% 90.25%

86%

88%

90%

92%

94%

96%

98%

$- $200 $400 $600 $800

$1,000 $1,200 $1,400 $1,600

RENTS & OCCUPANCYAverage In-Place RentRevenue Per UnitAverage Occupancy

Radius Cheshire Bridge | Renovation Pictures318 Units | Atlanta, GA | Year 1 Proforma – December 2017