Penn Landing

Transaction: Purchase and renovation of apartment community in mature submarket

Asset Summary: 598-unit Class C garden apartment complex built in 1968

Location: Forestville, MD

Date Closed: February 2008

Investment Strategy:

• Purchased at 40% replacement cost in a limited marketing process
• Invested in extensive common area and unit improvements with the goal of improving rents and stabilizing operating expenses
• Refinanced after two years, generating significant proceeds
• Stabilized occupancy in mid-2010

Exit Strategy:

• Sell upon stabilization in year four or five to workforce housing aggregator or smaller institutional buyer