BELOW-REPLACEMENT-COST BASIS IN A SUPPLY-CONSTRAINED MARKET

Hillcrest is priced at a significant discount to current replacement cost. Hard construction costs for new townhomes in North Carolina range from $140–$250 per square foot, before accounting for land, soft costs, carry, and developer margin. Delivering a comparable community today would require total capital materially above the offering basis. Additionally, with no competing BTR developments underway in Southwest Winston-Salem, new supply is unlikely to pose a near-term risk.

2023 VINTAGE — ZERO NEAR-TERM CAPITAL REQUIREMENTS

New construction quality with no renovation program, no deferred maintenance, and no repositioning risk. Every home delivers LVP flooring, quartz countertops, stainless appliances, private fenced yards, and in-unit washer/dryer hookups. The modern new build is the maintenance free townhome living residents are searching for, and the surging population further supports future demand and rent growth.

ANCHORED BY WINSTON-SALEM LIFE SCIENCES & HEALTHCARE EMPLOYMENT CORRIDOR

Hillcrest sits within 12 minutes of the region’s most recession-resistant employment anchors: Atrium Health Wake Forest Baptist (~13,000 W-S facility employees) and Novant Health Forsyth Medical Center (11,010 employees, ~5 minutes away). The Innovation Quarter — a 330-acre innovation district home to 170+ life sciences and technology companies generating $1.66 billion in annual economic impact — is expanding through Phase II, deepening the employment base that drives long-term rental demand in this corridor.

NATIONALLY RECOGNIZED 10-YEAR REGIONAL JOBS & INBOUND MIGRATION ENGINE

The Winston-Salem metro population has increased 12% over the past 10 years. This sustained population influx is directly fueled by the Piedmont Triad’s booming job market—where total regional employment expanded to over 298,000 workers, heavily insulated by a massive education and health services core growing at 4.5% annually. This growth has created an insulated, recession-resistant rental demand that continuously outpaces supply.