Proven Value-Add Execution with Continued Runway
Lexington Springs and Mountain Ridge present an attractive value-add opportunity with 132 classic units positioned for continued renovation. Ownership has already demonstrated proven renovation premiums averaging approximately $171/month across the Portfolio, providing a clear roadmap for future interior upgrades and NOI growth. The fully renovated units at both properties feature LVP flooring in living areas, two-toned paint packages, new white shaker-style cabinetry, stainless steel appliance packages, modern lighting fixtures, granite countertops, updated hardware, and updated bathroom vanities and countertops. Additionally, select units throughout the Portfolio have received partial upgrades, including new LVT flooring and/or stainless steel appliance packages. A new owner has the opportunity to continue the in-place renovation strategy across the remaining classic inventory and capitalize on sustained demand for upgraded product within the Shenandoah Valley region. This translates to approximately $271,000 of additional annual NOI upside based on proven average renovation premiums currently being achieved across the Portfolio.

Strategic Capital Enhancements Elevating Asset Positioning
Ownership has invested approximately $1,737,000 ($7,931/unit) in targeted capital improvements across Lexington Springs and Mountain Ridge, materially enhancing the Properties’ operational longevity, curb appeal, and competitive positioning within the Shenandoah Valley market. Capital investment has focused on interior renovations, major building systems, parking lot improvements, roofing, and common area upgrades, creating a more enhanced asset profile while supporting continued rent growth potential.

Benefiting from the Economic Strength of the I-81 Corridor
The Portfolio is strategically positioned along the Shenandoah Valley’s I-81 corridor, one of Virginia’s most important economic and logistics corridors, supporting billions in annual economic activity and a deep regional employment base. Major employers throughout the corridor include Augusta Health (~3,000 employees), Carilion Clinic (~13,000 employees systemwide), Sentara RMH Medical Center (~2,700 employees), James Madison University (~7,000 faculty/staff jobs), Washington & Lee University (~1,000 employees), Walmart Distribution (~1,000 jobs regionally), Hershey Chocolate of Virginia (~1,000 employees), Amazon logistics operations (~1,000+ regional jobs), FedEx Ground hubs (~500+ jobs regionally), Daikin Comfort Technologies (~1,200 employees), Mohawk Industries (~700+ employees), and numerous advanced manufacturing and distribution users that continue driving sustained workforce housing demand across the corridor.

Affluent Shenandoah Valley Demographics Support Demand
The Portfolio benefits from strong surrounding demographics, including average household incomes exceeding $100,000 within the 3-mile radius of both Properties, elevated levels of white-collar employment, and a highly educated resident base supporting long-term housing demand throughout the Shenandoah Valley region.

Rent-to-Own Affordability Advantage Sustaining Demand
Lexington Springs and Mountain Ridge continue to offer a meaningful affordability advantage relative to homeownership within their respective Shenandoah Valley submarkets. Based on recent nearby home sales, the estimated monthly cost of ownership materially exceeds current in-place apartment rents, reinforcing the long-term attractiveness of attainable Class B rental housing throughout the region. At Lexington Springs, recent nearby home sales averaged approximately $440,000, equating to an estimated monthly mortgage payment of roughly $2,529. In comparison, the Property’s average in-place rent of approximately $1,161 represents an estimated monthly savings of approximately $1,368 relative to homeownership. Similarly, at Mountain Ridge, nearby home sales averaged approximately $462,000, supporting an estimated monthly mortgage payment of approximately $2,618 versus current average in-place rents of approximately $1,262 — a monthly discount to ownership of approximately $1,356.