Ten05 West Trade

Jones Lang LaSalle, a North Carolina licensed real estate broker (“JLL”), has

been retained as the exclusive sales representative for Ten05 West Trade

(“the Property” or “the Asset”), a 2003-vintage midrise property featuring 190

apartment units , most of which have not been renovated. The asset’s premier

location in Uptown Charlotte is walkable to an extensive mix of restaurants, bars

and shops, and is also just minutes away from the heart of Uptown Charlotte, the

largest employment hub in the MSA.

Ten05’s market rate units have, on average, effective rents that are 25% lower

than those of their competitive set. The majority of Ten05’s unit mix consists

of classic units, which presents potential investors with ample opportunity to

renovate the units and increase rental rates. This strategy can effectively narrow

the gap between Ten05’s effective rents and the rents charged by its competitive

set.

The Affordable Housing Crisis in Charlotte, NC leaves the city undersupplied

by 36,000 affordable housing units. This major deficit in affordable housing is a

strong driver for rental demand at Ten05, which is currently significantly below

the max allowable rents per its Land Use Restriction Agreement. 40% of the units

at Ten05 are affordable at 60% AMI. Given where the 2024 Fair Market Rents are

projected for this AMI restriction, Ten05’s affordable rents are on average 23%

below market, providing a clear mark-to-market opportunity for new ownership

to significantly increase affordable rental income.

Ten05 is located in the Third Ward neighborhood of Uptown, Charlotte, the

focal point for all of the major employment hubs in the MSA. Not only does this

centralized location allow its residents to commute to the majority of the MSA

in 20-minutes or less, it provides tantamount urban amenities, including several

entertainment venues, museums, universities, bars, restaurants, and parks,

bringing every amenity a renter would ever need. The competitive set confirms

that renters have a strong enough appetite for renovated product in this location

to execute a value-add program in order to drive higher rents.