Maple Court Apartments — ConfidentialNorthshore Capital Partners

Illustrative — subject to revisionInvestor Underwriting Brief

Investor Underwriting Brief

Confidential

Maple Court Apartments

48-Unit Value-Add Multifamily · Greenville, SC · June 2026

Total Cap.

$7.60M

Equity

$2.66M

Target IRR

18.0%

Equity Multiple

2.19x

over 5-yr hold

Going-In Cap

6.0%

stab. YoC 7.2%

Avg Cash-on-Cash

5.4%

7.7% stabilized

Net Profit

$3.15M

to equity

Illustrative placeholders for format demonstration — tie to assumptions on the final page and replace with deal inputs.

Investment Thesis

Maple Court is a 1986-vintage, 48-unit garden community acquired at $130,000/unit—below the $134K–$139K basis of recent stabilized trades. In-place rents sit ~19% under renovated comps, defining a clear path to value via interior and common-area renovation.

Mark-to-market upside

A targeted renovation program drives meaningful rent premiums, lifting net operating income well above in-place levels.

Basis protection

A going-in basis below replacement cost and comps provides downside protection and current yield during execution.

Deleveraging at exit

Leverage falls materially as the asset stabilizes, de-risking the disposition and refinancing options.

Resilient demand

Low vacancy, steady rent growth, and limited new supply underpin demand and growth assumptions.

Sources & Uses

Uses$7.60M

Purchase Price$6,240,000
Renovation / CapEx$720,000
Closing & Financing$310,000
Acquisition Fee$125,000
Reserves$205,000
Total Uses$7,600,000

Sources$7.60M

Senior Debt (65% LTC)$4,940,000
LP Equity$2,394,000
GP Co-Invest$266,000
Total Equity$2,660,000
Basis / Unit$158,333
Total Sources$7,600,000

Unit Mix & Rent Roll

Unit Type	Units	Avg SF	In-Place	Pro Forma	Premium
1 BR / 1 BA	18	650	$1,150	$1,425	+$275
2 BR / 1 BA	20	900	$1,375	$1,695	+$320
2 BR / 2 BA	10	1,050	$1,550	$1,895	+$345
Total / Wtd Avg	48	838	$1,327	$1,635	+23%

GPR $764K → $942KRent PSF $1.58 → $1.9540,200 total SF

Operating Pro Forma

Line Item	T-12	Year 1	Yr 3 Stab.	Yr 5 Exit
Gross Potential Rent	764,400	812,000	970,000	1,028,000
Vacancy / LtL / Credit	(76,440)	(97,440)	(48,500)	(51,400)
Other Income	36,000	42,000	54,000	58,000
Effective Gross Income	723,960	756,560	975,500	1,034,600
Operating Expenses	(351,000)	(368,000)	(430,000)	(455,000)
Net Operating Income	372,960	388,560	545,500	579,600

Going-in cap 6.0%Stab. YoC 7.2%OpEx ratio 44%

Operating Expense Benchmarking

Stabilized expenses as a share of effective gross income, measured against market-standard ranges. Line items outside the expected band are flagged for diligence.

Total OpEx Ratio

44.0%

within 40–48% norm

Expense / Unit

$8,952

per unit / year

Items Flagged

2

taxes high · payroll low

Expense	Amount	% EGI	Expected	Flag
Real Estate Taxes	118,000	12.1%	8–11%	Above
Insurance	36,000	3.7%	3–5%	In range
Utilities	66,000	6.8%	5–8%	In range
Repairs & Maintenance	58,000	5.9%	5–8%	In range
Payroll & Admin	72,000	7.4%	8–12%	Below
Management	29,300	3.0%	3–4%	In range
Marketing	10,400	1.1%	1–2%	In range
Contract Services	28,000	2.9%	2–4%	In range
Reserves	12,000	1.2%	1–2%	In range
Total Operating Expenses	429,700	44.0%	40–48%	In range

Two items fall outside benchmark. Real estate taxes run above the 8–11% norm — model a post-sale reassessment to current millage before closing. Payroll sits below the 8–12% norm — confirm staffing is adequate to operate the renovated asset at target service levels.

Financing

Loan Amount

$4,940,000

Interest Rate

6.50% fixed

Loan-to-Cost

65%

Term / Amort.

5 yr / 30 yr

Interest-Only

24 months

Stabilized DSCR

1.46x

LTV at stabilized value 49% · Going-in DSCR 1.16x · Origination 1.00%

Projected Returns

Levered IRR

18.0%

Equity Multiple

2.19x

Avg CoC

5.4%

Net Profit

$3.15M

Year	NOI	Debt Service	Cash Flow	CoC	Distribution
0 — Acquisition	—	—	—	—	(2,660,000)
1	388,560	(321,100)	67,460	2.5%	67,460
2	465,000	(321,100)	143,900	5.4%	143,900
3	545,500	(374,640)	170,860	6.4%	170,860
4	562,000	(374,640)	187,360	7.0%	187,360
5 — Operations	579,600	(374,640)	204,960	7.7%	204,960
5 — Net Sale	—	—	—	—	5,038,400
Total to Equity				2.19x	5,812,940

Deal Comparison

Maple Court measured against two active pipeline opportunities and the sponsor's target underwriting standard.

Metric	Maple Court	Cedar Park · 72u	Westin Flats · 36u	Sponsor Target
Units	48	72	36	—
Price / Unit	$130,000	$142,000	$121,000	≤ $145K
Going-In Cap	6.0%	5.4%	6.3%	≥ 5.75%
Stabilized YoC	7.2%	6.5%	7.0%	≥ 6.75%
Levered IRR	18.0%	15.2%	17.1%	≥ 16.0%
Equity Multiple	2.19x	1.85x	2.05x	≥ 1.90x
Avg Cash-on-Cash	5.4%	4.8%	5.6%	≥ 5.0%
DSCR (stabilized)	1.46x	1.28x	1.41x	≥ 1.30x
Loan-to-Cost	65%	70%	62%	≤ 70%
Hold Period	5 yr	7 yr	5 yr	—

Maple Court clears every sponsor threshold and leads the pipeline on going-in yield, levered IRR, and equity multiple — at the lowest basis per unit of the three.

Sensitivity — Levered IRR

Exit Cap ↓ / Rent Growth →	2.0%	3.0%	4.0%
5.25%	19.8%	21.6%	23.3%
5.50%	18.2%	19.9%	21.5%
5.75%	16.6%	18.0%	19.7%
6.00%	14.9%	16.4%	18.0%
6.25%	13.3%	14.8%	16.3%

Monte Carlo Simulation

Ten thousand trials randomizing the key value drivers across their assumed distributions, holding the capital structure fixed. Outcomes are reported as the resulting distribution of levered IRR.

Simulation Inputs

Driver	Distribution	Parameters
Annual rent growth	Normal	μ 3.0% · σ 1.0%
Exit cap rate	Triangular	5.25% / 5.75% / 6.50%
Renovation premium	Normal	μ $300 · σ $60 /unit
Stabilized vacancy	Triangular	4.0% / 5.0% / 8.0%
Expense growth	Normal	μ 2.5% · σ 0.7%
Property appreciation	Normal	μ 3.0% · σ 1.5%

Levered IRR Distribution — 10,000 Trials

P10 11.4% · Median 17.9% · P90 24.6%

<8

8–11

11–14

14–17

17–20

20–23

23–26

26+

Levered IRR (%)

Outcome Percentiles

Metric	P10	P50	P90
Levered IRR	11.4%	17.9%	24.6%
Equity Multiple	1.72x	2.18x	2.71x

P(IRR ≥ 15%)

71%

P(IRR ≥ 16% target)

64%

P(Multiple ≥ 2.0x)

66%

P(Capital impairment)

3%

Market & Comparables

Vacancy

4.8%

Rent Growth

3.4%

Job Growth

6.1%

Med. HH Inc.

$68.4K

New Supply

1.9%

Rent Comparables

Maple Court — Pro Forma	$1,635	$1.95
Reserve at Oakmont	$1,610	$1.92
Parkside 240	$1,720	$2.05
Cedar Crossing	$1,540	$1.83

Sale Comparables

Briarwood Commons	$134,091	5.6%
Station 56	$139,286	5.5%
Elmwood Flats	$126,316	5.8%
Maple Court — Entry	$130,000	6.0%

Tax Strategy & REPS

A cost-segregation study accelerates depreciation into shorter-life components, generating a large first-year paper loss that flows to investors on their K-1. How that loss is used depends on each investor's tax profile — most materially, whether they qualify for Real Estate Professional Status (REPS).

Year-1 Tax Profile (Illustrative)

Depreciable basis (excl. land)$5,712,000

Cost-segregated to 5/7/15-yr lives (~28%)$1,599,000

Year-1 depreciation (illustrative)$1,046,000

Projected Year-1 K-1 passthrough loss$(905,000)

Allocated loss per $100K LP equity$(34,000)

REPS-Qualifying Investor

Losses are non-passive and offset W-2, business, and other active income dollar-for-dollar. At a 37% marginal rate, the Year-1 allocation shelters roughly $12,600 of tax per $100K invested.

Passive Investor

Losses are passive and suspended — they offset passive income or release in full at disposition. A $25,000 special allowance phases out between $100K–$150K MAGI.

Key Considerations

REPS test: more than 750 hours and more than 50% of personal services in real-property trades, plus material participation; a spouse's hours can combine.
Recapture at sale: §1250 depreciation recaptured at up to 25%; §1245 cost-seg components at ordinary rates.
Deferral option: a §1031 exchange can defer gain and recapture into a replacement property.
Bonus depreciation on short-life components is subject to then-current law — confirm the applicable first-year percentage at closing.

Illustrative only and not tax advice. Outcomes depend on each investor's facts and current law — consult a qualified tax advisor.

Exit & Disposition

Year-5 NOI$579,600
Exit Cap Rate5.75%
Gross Sale Value$10,080,000
Selling Costs (2.0%)($201,600)
Loan Payoff($4,840,000)
Net Proceeds to Equity$5,038,400

Disposition Basis

Exit at $210,000/unit ($251/SF) versus a $130,000/unit entry. The assumed 25 bps of cap expansion (6.0%→5.75%) is conservative against submarket trades clearing 5.5%–5.8%.

Key Assumptions & Disclosures

Rent growth (post-stab.)3.0% / yr

Expense growth2.5% / yr

Stabilized vacancy5.0%

Renovation scope$15,000 / unit

Renovation timeline18 months

Management fee3.0% of EGI

Replacement reserves$250 / unit / yr

Exit cap rate5.75%

This brief is provided for discussion purposes only and does not constitute an offer to sell or a solicitation to buy any security. All figures are illustrative placeholders pending finalized underwriting and third-party diligence. Forward-looking projections are estimates subject to material change and are not guarantees of future performance. Prospective investors should rely solely on definitive offering documents and conduct independent investigation. Past performance is not indicative of future results.