Financial Performance: Original Capital Investment: $560,000 IRR: 34% Equity Multiple: 6.72X Description: Northeast Apartments is a government subsidized apartment community located in the historic Pendleton Heights district of Kansas City. The property is comprised of 12 two and one-half-story buildings which collectively offer an attractive unit mix of 10 one-bedroom, 76 two-bedroom, and 51 three-bedroom apartments. Community amenities include onsite laundry, off street parking, and central air conditioning. MPC Strategy: In 2005, McKee Private Capital expanded its footprint to include the Midwest with the acquisition of Northeast View Apartments. MPC paid less than 50% of replacement cost allowing for a debt coverage ratio in excess of 1.5 and an acquisition cap rate of nearly 11%. Property operations remained stable throughout MPC’s holding period providing investors with consistent, double-digit cash on cash returns each month. Investor demand for Project Based Section 8 assets has surged since 2005, which prompted MPC to take Northeast View to market in 2014. The property sold in the first quarter of 2015 to a non-profit group at an above market sales price securing investors tremendous appreciation on their initial equity. Northeast View exceeded MPC’s initial investment projections.

Financial Performance: Original Capital Investment: $1,100,000 IRR: 13.24% Equity Multiple: 2.13X Description: Englewood Apartments is a government subsidized apartment community situated just north of the Missouri River in Kansas City. The property features a diverse unit mix which includes one-bedroom, two-bedroom, three-bedroom, and four-bedroom apartments. Community amenities include playground, onsite laundry, off street parking, and central air conditioning. MPC Strategy: McKee Private Capital purchased Englewood Apartments in 2007 with three investors, all of whom had taxable events looming due to capital gains on recent property sales. MPC successfully navigated three 1031 exchange transactions enabling investors to leverage their appreciated capital without tax recognition, and grow their real estate exposure by partnering in the acquisition of Englewood. In addition to equity preservation, Englewood provided investors with an 8.12% internal rate of return over the life of the investment. MPC sold the asset to a tax credit developer in May, 2015, realizing appreciation on the sale.

Financial Performance: Original Capital Investment: $854,000 IRR: 11% Equity Multiple: 2.57X Description: Governor’s Court consists of 5 two-story garden-style apartment buildings located in Olathe, KS. The property has 28 one-bedroom units, 48 two-bedroom units, and 4 three-bedroom units. Located just 20 miles south of Kansas City, Governor’s Court provides its residents with an affordable housing option within the affluent Johnson County sub-market. Community amenities include laundry facilities in each building, off street parking, and storage lockers for rent. MPC Strategy: McKee Private Capital purchased Governor’s Court in 2007 after having established a presence in the nearby Kansas City market. Given this property’s close proximity to Kansas City and the favorable market demographics of Johnson County, MPC was able to realize immediate rent growth post acquisition resulting in strong investor returns over the term of the investment. MPC decided to divest Governor’s Court in 2017 and completed a successful 1031 exchange into a brand new multifamily asset located in Springfield, Oregon.

Financial Performance: Original Capital Investment: $1,792,503 IRR: 10% Equity Multiple: 2.13X Description: White Lakes Plaza consists of 9 two-story buildings located in suburban southwest Topeka. This garden style community offers an attractive unit mix of 72 one-bedroom and 72 two-bedroom apartments. Common area amenities include our resort style swimming pool, community clubhouse, on site laundry facility, and covered parking. MPC Strategy: McKee Private Capital purchased White Lakes Plaza in 2006 after having success with another apartment investment in the nearby Kansas City market. As a condition of the purchase, MPC assumed the Seller’s conduit loan which featured an above market interest rate. After the yield maintenance provision expired, MPC refinanced White Lakes Plaza and pulled out cash for various property improvements which helped drive significant rent increases. Recognizing impending capital needs including roof and parking lot replacement, MPC decided to divest White Lakes Plaza in 2017 and completed a successful 1031 exchange into a newer single tenant asset located in Overland Park, KS.

Financial Performance: Original Capital Investment: $690,000 IRR: 13.57% Equity Multiple: 1.95X Description: Northside Gardens is a market rate, multifamily apartment community located in Warner Robins, GA. This property contains 32 single-story buildings which feature one-bedroom, two-bedroom, and three-bedroom floor plans. The 18 acre site is abundant with indigenous pine trees creating a peaceful, campus-like atmosphere for residents. Community amenities include two swimming pools, a laundry facility, a community clubhouse, and two tennis courts. MPC Strategy: In 2006, McKee Private Capital expanded into the Southeast region of the U.S. with the acquisition of Northside Gardens. MPC purchased the real estate at a significant discount to replacement cost alongside one equity partner. Property operations remained stable throughout MPC’s holding period providing investors with consistent monthly cash flow for nearly nine years. Given the age of the asset, and impending capital investment requirements, MPC made the decision to sell in January, 2015, realizing a profit on the sale. Sale proceeds, coupled with the years of cash flow provided our ownership entity with an internal rate of return in excess of 10% over the term of the investment.

Financial Performance: Original Capital Investment: $1,760,000 IRR: 11.06% Equity Multiple: 1.08X Description: Carriage House consists of 12 two and one-half-story buildings situated on 9 acres in southwest Topeka, Kansas. This garden style community features one and two bedroom apartment homes. Common area amenities include two swimming pools, a community clubhouse, on site laundry facilities in each building, and abundant off street parking. Beautifully landscaped courtyards provide residents with a serene setting within the capital city of Kansas. MPC Strategy: McKee Private Capital purchased Carriage House in 2008, sourcing equity contributions from ten investors. MPC was able to acquire the property well below replacement cost due to above market vacancy and high delinquencies that existed prior to takeover. Investors enjoyed monthly cash flow distributions during the first six years of operations. However, during the Great Recession, Topeka began to experience economic decline, resulting in a surge of unemployment, and resulting in large numbers of resident defaults. Many of the better qualified residents upgraded to single family home rentals and purchases, made possible by the glut of foreclosures in the market. This major shift had a negative impact on overall property operations and liquidity. MPC ultimately made the difficult decision to take a minimal loss and exit this investment in 2015. We feel it is important to mention that MPC held a majority ownership interest in Carriage House, as is the case with most of MPC’s investments.

Financial Performance: Total Cumulative Investor Distributions: N/A Description: 16 single family homes, built between 2005-2006 in Lehigh Acres, FL, east of Ft. Myers, and just 20 minutes from the Gulf of Mexico. Homes range in size from 3BR/2BA to 4BR/2.5BA and are situated on ¼ acre lots. Features include upgraded appliances, laundry rooms, tile floors, large screened lanais and two car garages. MPC Strategy: McKee Private Capital purchased 16 vacant residential lots in Lehigh Acres, FL in 2004, at an average cost of $10,625, and obtained 100% construction financing to develop new single family homes for investment. The timing of this investment was good, and we were able to sell 10 of the 16 homes prior to the market collapse at profits ranging from $75,000 to $125,000 per house. Our leverage on these homes was enormous given the ability to finance 100% of the development cost. The remaining 6 homes remain in our investment rental portfolio, and are currently 100% occupied. The continued growth in Southwest Florida is impressive, and we are happy to hold these remaining homes for long-term capital gains.