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LINCOLN POINTE APARTMENTS     INVESTMENT


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The purpose of this Confidential Investment Offering Overview is to provide a summary of a possible future private investment opportunity that may be made available to a certain limited number of accredited investors. This is not an offer to sell real estate and/or any type of security, partnership interest, public or otherwise.

The contemplated offering provides Investors with the opportunity to acquire an interest in an existing apartment community, Lincoln Pointe Apartments, consisting of 338 garden-style units located in Bethel Park (Pittsburgh), Pennsylvania; one of the most desirable suburbs in the Pittsburgh market known for its central location, easy access to major employers, strong schools, shopping and entertainment amenities. The community is an ideal value-add real estate investment due to the fact that the asset is situated in a highly desirable infill location that has been owned and operated by the original developer for nearly 25 years. Their reliance upon union labor allows for the opportunity to strategically invest capital to operate the Property more efficiently and enhance its competitive position.

The Property affords the opportunity to invest in a stabilized, well-located asset that has a history of consistent performance with the ability to increase effective rents through extensive interior renovations, amenity improvements and the implementation of a utility reimbursement program. The Property’s historically strong occupancy, solid location and physical attributes combine to make it one of the most desirable apartment communities in its submarket. The additional capital investment will further enhance the Property’s competitive position and solidify it as one of the best-in-class communities in its asset class within the Pittsburgh area.

Lincoln Pointe is strategically situated along the Light Rail’s Red Line providing direct access to downtown Pittsburgh, which is the headquarters of five Fortune 500 companies including US Steel, PNC Financial Services, PPG, HJ Heinz and Wesco International. Pittsburgh is comprised of seven counties with a population of approximately 2.4 million, making it the 22nd largest city in the nation. According to the Pittsburgh Regional Alliance, the city has experienced a 17.5% five-year increase in personal income. As of the end of 2016, Pittsburgh’s unemployment rate stood at 5.2%, which was in line with the national average. In short, with a pro-business government and a diversified employment and industry base, Pittsburgh is positioned extremely well for continued economic growth.

Downtown Pittsburgh
Carnegie Mellon University

Our investment partner, responsible for repositioning this apartment community, is Highgate Capital Group, LLC. Highgate, based in Chicago, is managed by John Kinzelberg and Jeff Katz, who have over 38 years of real estate and private equity experience between the two of them. To date John has acquired over 3,800 multifamily units with an aggregate cost of over $420 million, and Jeff has been part of a team that has purchased and sold more than $2.5 billion in real estate assets. Since founding Highgate in 2012, they have acquired over 1,500 units with an aggregate cost of over $100 million. SMB Bradley is a Chicago based private real estate investment company that focuses on opportunistic equity investments and has interests in over $2 billion of real estate throughout the country. Since its inception, SMB Bradley has raised over $750 million of private equity. This will be our second investment with Highgate. Several months ago we invested in a stabilized apartment community in Beacon Lake, Michigan with them.

Lincoln Pointe was built in 1993 and consists of 214 one bedroom/one bathroom units and 124 two bedroom/two bathrooms within six buildings along with a leasing center and clubhouse. There is a total of 274,641 rentable square feet located on 10.49 acres. Amenities include a 24-hour fitness center, clubhouse, swimming pool, heated underground parking, extra storage and elevator access in each building. The unit interiors include walk-in closets, a washer/dryer, wood burning fireplace (select units), breakfast bar, all electric kitchen and built-in pantries. Highgate plans to make aesthetic upgrades to interiors, as well as updates to the landscaping to enhance curb appeal.

Situated less than 10 miles from downtown Pittsburgh in the South Alleghany submarket, Lincoln Pointe is well located in one of the most established suburbs of Pittsburgh just off the highly visible and trafficked intersection of Washington and Highland Road. This prime location offers residents easy access to an abundance of employers, retail and entertainment including the South Hills Mall featuring a Target, one of only three Apple stores in the Pittsburgh market, a Trader Joe’s and a 40,000 sf Whole Foods Market store that opened in January 2017 within walking distance of the Property.

Lincoln Pointe is strategically situated along the Light Rail’s Red Line providing direct access to downtown Pittsburgh, which is the headquarters of five Fortune 500 companies including US Steel, PNC Financial Services, PPG, HJ Heinz and Wesco International. Pittsburgh is comprised of seven counties with a population of approximately 2.4 million, making it the 22nd largest city in the nation. According to the Pittsburgh Regional Alliance, the city has experienced a 17.5% five-year increase in personal income. As of the end of 2016, Pittsburgh’s unemployment rate stood at 5.2%, which was in line with the national average. In short, with a pro-business government and a diversified employment and industry base, Pittsburgh is positioned extremely well for continued economic growth.

Lincoln Pointe is located in a mature, dense, infill area, with both single family and multifamily housing markets almost fully built out. The entire South Alleghany submarket is expected to deliver only 425 new units through 2021, or less than 2% of the existing housing stock resulting in increasingly low vacancies and rising rents for the foreseeable future. Lincoln Pointe Apartments, LLC is an entity sponsored by SMB Bradley. The entire life of the project is anticipated to be 7 years.


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