• San Francisco-based seller acquired Villas for $37.5M ($134k/unit) in August of 2016. Villas is their last asset in Texas.

• Sellers’ corporate strategy shifted to having assets Denver & westward. Additionally, current property manager lacks local scale, making it difficult for seller to optimize the asset.

• Seller has an upcoming loan maturity, resulting in a motivated seller.

• Property launched for sale in May 2026 at $42M or $150K/unit.

• All of the above resulted in our ability to negotiate & retrade to an acquisition basis at $37.375M ($133.5K/unit)…below what the Seller paid for it 10 years ago.

• An historic wave of multifamily construction in Austin delivered >90K units from 2022 to today.

• Oversupply compressed Villas’ in-place rents to $1,239 from a Q1 2023 peak of $1,527.

• Despite the impacts of the last few years, this stabilized asset boasts a highly attractive 5.8% going-in cap rate with full taxes & occupancy north of 95% at the end of August (T-12 ave of 94%), compared to other Austin deals with poor operations & low cap rates.

• Values & rents have clearly reset, allowing us to acquire this asset at heavily depressed pricing before the market rebounds.

• The current supply cliff provides a potential perfect storm setup for us to acquire Villas before the market takes off.

• Pflugerville:

  • Under Constructions = 0 units | Planned Construction = 0 units (CoStar; Pflugerville & Nearby Round Rock Submarkets).

  • Median Household Income of $113,200 in Villas 78660 zip code (US Census Bureau).

• Austin MSA:

  • Supply Tsunami: The Austin MSA delivered >90K units from 2022-today, peaking in 2024. It delivered >50K units 2024-2025 alone.

  • Supply Cliff: Austin MSA deliveries began to drop, starting in 2025, with 2026 deliveries representing a 62% decline from the 2024 peak.

  • Top Performing Metro: #1 in 5-Year Job Forecast (GreenStreet), #2 in Fastest Growing MSA in Percentage Change (US Census Bureau), & 8th Metro Area Leaders with 23,000 Jobs Created (Yr-Ending July 2026, Bureau of Labor Statistics).

• Industry Expert Jay Parsons: Has provided data showing that Austin leads the nation in rent momentum & highlighted a “flight to quality” in multifamily; Villas fits this tenant target perfectly. (Links to articles available by clicking the underlined items in this bullet.)

• CHDO = Community Housing Development Organization; structure enacted by Texas Legislature in 2003.

• NO Section 8 requirements; only a 60% Area Median Income (“AMI”) cap on 50% of units. We’ll have full operational control.

• Because market rents have been temporarily pushed down by the recent supply glut, current in-place rents ($1,239) are substantially lower than the 60% AMI CHDO limits ($1,636).

• With the CHDO, Year 1 Taxes will be reduced from an original estimated $644K to $322K.

• This 50% property tax exemption drives immediate & massive NOI expansion, while still having ~$400 of headroom to increase rents.

• Year 5 rents in underwriting are at $1,452/unit, which is still ~$200 below even current composite 60% AMI Rent Limits.

• Cap rate increases to 6.53% with the 50% tax abatement.

• Loan Terms:

  • Floating-Rate loan at 5.25% interest (spread of 1.80% over SOFR; SOFR Rate Cap = 3.45%)

  • Purchasing 3-year SOFR rate cap

  • Self-escrowing additional funds up front for Years 4 & 5 rate cap to cover future Freddie Mac rate cap escrows

  • 10-year term; 5-years of Interest Only

  • 67% LTV

• Loan Flexibility:

  • Avoids punitive prepayment penalty like Defeasance or Yield Maintenance that would tie our hands & limit our ability to sell at an opportune timing.

  • Provides path to potential cash-out refinance once CHDO is in place.

• Rents: Used current effective rents only & applied modest $150/unit bump for CapEx upgrades on premium units.

• Cap Rate: Exit assumes today’s 5.5% exit cap rate.

• Property Taxes: Our exit value assumes a fully market rate NOI using 100% property taxes.

• See Business Plan slides Pathways to Outperform Conservative Assumptions and Pathways to Outperformance.

• Location: High-growth North Austin suburb. Asset next to I-35 & less than 2 miles from Hwy 45 running East/West.

  • Major Employers Nearby: Samsung, Apple, Applied Materials, Amazon, IBM, eBay/Paypal, & Dell’s World Headquarters.

  • Less than 5 miles from The Domain, Austin’s premier retail & entertainment district with over 4M SF of office and 1.85m SF of retail.

  • 2+ miles from the Shopping Centers at I-35 & Highway 45 Intersection, includes Target, Walmart, H-E-B, Sam’s Club, Best Buy, Home Depot, Lowe’s, & plenty of restaurants.

• Well-Maintained combined with Value-Add Upside: Villas has been well-maintained overall physically with an excellent amenity set, including an expansive clubhouse, lounge with kitchen & coffee bar, large fitness center, & a brand new pool.

  • Significant opportunity to modernize interiors to capture $150 in rental premiums along with some light amenity & exterior enhancements.

  • SPI’s light interior value-add plan includes upgrading appliance packages, flooring upgrades, lighting updates, framed bathroom mirrors, & bathtubs, as needed, & adding approximately 15 private back yards.

• A Cost Segregation Study will be ordered so that ”Bonus Depreciation” can be taken on this project, leading to substantial tax savings in 2026.

• With the “One Big Beautiful Bill,” investors benefit from 100% bonus depreciation.

• Combined with cost segregation, we expect 2026 K-1s to show ~83% of invested equity as tax losses.*

• This means a $100K investor can expect ~$83K in depreciation on the 2026 K-1.

*Please consult your tax advisor to understand how this might impact your tax return.