Offering Memorandum

RAC Properties of

Athens, INC

2 2 U n i t s o n L o b l o l l y

D r i v e

Offered at $1,900,000

COMMERCIAL REAL ESTATE NON-DISCLOSURE AGREEMENT

This COMMERCIAL REAL ESTATE NON-DISCLOSURE AGREEMENT (hereinafter known as the “Agreement”) is made between (hereinafter known as the “Buyer”),Sapphire Properties, LP (hereinafter known as the “Seller”) and RAC Properties of Athens, INC (hereinafter known as the “Agent”) in consideration of disclosure of confidential and proprietary information in connection with the Buyer’s consideration of purchasing, leasing or investing in real estate owned and/or managed by the Seller, effective on this day of

, 20__ (hereinafter known as the “Effective Date”).

Article I: The PropertyIn order to allow the Buyer to properly evaluate a possible acquisition or investment of Loblobby Duplexes, Athens, GA (hereinafter known as the “Property”), the Seller will furnish the Buyer with confidential and proprietary information. The Buyer shows genuine interest in the Property and understands and acknowledges the sensitive nature of the confidential information.

Article II: Confidential InformationDefinitions. “Confidential Information” refers to all technical, marketing, financial and other business information and material that is confidential and proprietary, whether in oral, written, electronic or other form, and all reports, notes, analyses, studies or other documents which contain or otherwise reflect any such information.Exclusions. Confidential Information does not include information which:

was in the Buyer’s possession prior to disclosure by the Seller;is or becomes available to the public through no act or breach of agreement by the Buyer;is received by the Buyer through a third party who is not bound by any obligations of confidentiality relating to such information; orhas been developed by the Buyer or any third party without any use of, reliance on, or reference to any Confidential Information.

Return of Confidential Information. At the conclusion of any negotiation, agreement or transaction relating to the Property, upon termination of this Agreement or at the request of the Seller, the Buyer agrees to promptly return or destroy all ConfidentialInformation without retaining any copies thereof or any notes relating thereto.

CONFIDENTIALITY AND DISCLAIMER

RAC Properties

of Athens, INC

Article III: DisclosureA. Non-Disclosure. The Buyer shall not use or disclose Confidential Information for any purpose other than evaluation in regard to a possible acquisition or investment or to any

other person or business entity, nor shall the Buyer permit any third party (employees, officers, directors, agents, consultants or contractors) to do the same. The Buyer shall not and shall not permit any third party to disclose to any other person or business entity the fact that any discussion or negotiations are taking place with respect to the Property. All parties agree to keep potential transactions and the terms of this Agreement completely confidential.Representatives. Confidential Information shall only be disclosed to the Buyer’s employees, officers, directors, agents, consultants or contractors who need to know such information solely in connection with business opportunities relating to the Property. All such representatives shall be informed by the Buyer of the confidential nature of the Information and shall be bound by the terms herein.Compelled Disclosure. Buyer may disclose Confidential Information only when acting in compliance with a civil investigative demand, valid court order or other legal obligation, provided that the Buyer notifies the Seller of any such request as promptly as feasible.

Article IV: TermThis Agreement and all the terms, conditions and provisions hereof shall survive for a period of 90 days from the date of the closing of any purchase, lease or investment agreement, whether the transaction is successful or unsuccessful, or if the Confidential Information becomes publicly available, whichever occurs first.

Article V: General ProvisionsEntire Binding Agreement. This Agreement sets forth the entire understanding and agreement between the parties with respect to the subject matter hereof and supersedes all other oral or written representations and understandings. This Agreement may only be amended or modified by a writing signed in advance by the parties. This Agreement is binding upon the successors, assigns and legal representatives of the parties, and protects Confidential Information of any successors or assigns of the Seller.Remedies. The Buyer understands and agrees that failure to perform any and all obligations hereunder, or failure to comply with any terms or conditions hereof, could cause the Seller irreparable harm for which monetary damages are not adequate compensation. Accordingly, the Seller shall be entitled to injunctive relief to specifically enforce the terms of this Agreement, in addition to any other remedies available to it at law or in equity.Accuracy. Seller makes no representations or warranties with respect to the accuracy or completeness of the Confidential Information or otherwise under this Agreement, and hereby disclaims all implied warranties. Buyer agrees not to hold liable the Seller, Agent nor any other representative arising from the use or disclosure of the Confidential Information.Contact. Buyer shall not contact any of the Property’s employees, suppliers, customers or tenants, nor enter into any discussion with the above-mentioned, at the Property without the express written permission of the Seller.

Severability. If any provision of this Agreement is held to be illegal, invalid or unenforceable, such provision shall be eliminated or limited to the minimum extent such that the legality, validity and enforceability of the remaining provisions will not be affected or impaired.Governing Law. This Agreement will be governed by and construed in accordance with the laws of the State of GA without reference to its choice of law rules and as if wholly performed within the State. Any litigation regarding the interpretation, breach, or enforcement of this Agreement will be filed in and heard by the state or federal courts with jurisdiction to hear such disputes in the State and both parties hereby submit to the jurisdiction of such courts.Prevailing Party. If any litigation is brought by either party regarding the interpretation or enforcement of this Agreement, the prevailing party will recover from the other all costs, attorneys’ fees and other expenses incurred by the prevailing party.

IN WITNESS WHEREOF, the parties hereto understand and agree to the terms and conditions herein and have executed this Agreement as of the dates written below.

Buyer Signature DateBuyer Printed NameSeller Signature Date 01/04/2021Seller Printed Name Sapphire Properties, LP

CONFIDENTIALITY AND DISCLAIMER (CONTINUED)

RAC Properties

of Athens, INC

www.RACProperties.com

RAC Properties of

Athens, INC

Madison Gaubert Rob Scott(770) 367-7844 (706) 621-2050madison@racproperties.com rob@racproperties.com

Typical Back Yard Typical Back Yard- Many Fenced

SummaryEXECUTIVE S U M M A R Y

EXECUTIVE SUMMARY A t h e n s P o r t f o l i o

PROCESS AND OFFERING INSTRUCTIONS

Distribute Offering Memorandum

Marketing Period

Offer Due

Condition of Sale

Confidential Offering Memorandum distributed to interested parties that have executed a Confidentiality Agreement.

During the marketing period, interested parties are encouraged to (i) review materials posted to the “Due Diligence” section of (ii) schedule showings with exclusive listing brokers and (iii) dialogue with exclusive listing brokers to clarify any information provided in the Offering Memorandum.

Offers are due in writing in the form of a Letter of Intent (LOI) and should include the following:

Terms:• Purchase Price• Earnest Money Deposit• Inspection Period

• Closing Period

Investor Information:• Description of purchaser’s entity structure and capital source• Description of purchaser’s debt source and terms (if applicable)

• Please provide details on your experience in owning Multi Family

The property is being offered in its “as is” condition. Purchaser shall confirm by Purchaser’s own due diligence the condition and suitability of the property, without any reliance upon information provided herein.

Interested parties are requested to direct all communication regarding the property to:

Robert Scott

706-621-2050

rob@racproperties.com

Loblolly is tucked away in the pine trees just two and half miles from downtown Athens and the University of Georgia. The portfolioconsist of 11 duplexes with 22 two bedroom and one bathroom units. This is an opportunity to own and control 90% of a street so youcan continue to improve the street and rent. It was assembled by the current owners over the last decade and consist of all dwelling onthe street except for two. The property is stable, full and has increasing rents. There are no HOA fees or restrictive covenants. Below is asummary of the property.

Great Place to Live. Tenants love to live at Loblolly as the rents are still much lower than the majority of apartments in Athens andthere is a real sense on community. It is an easy commute to downtown and the university. While most the tenant base is not collegestudents, we do house a good number of support staff for the college, local hospitals and the Caterpillar plant. Each one level unit offersa washer/dryer connection, patio and private yard! We allow pets and offer fenced back yards for an extra $25 a month (plus pet fee) sosmall pet owners are literally lining up and on a wait list to move in.

Increasing rents. The economy in Athens is strong and rents continue to increase. Loblolly is in a great position for continued increasingrents. Current market rent is $800-$900 for a two bedroom unit and Loblolly is well below this. Due to high land and constructioncosts, the only new rentals coming to the market are priced at nearly twice this rate allowing units to stay full and continue to pressurerents higher. There is a wait list and units rent immediately upon vacancy at asking price with zero concessions. Current owners increaseexisting tenant rents at least $75-100 per month at renewals and up to market upon new lease ups. The rent roll is increasing an averageof $250 a month and this is expected over the next 2-3 years until rents catch up with market rent. With this upside in rent income theannual rental income is expected to be nearly $240,000 more in two years.

Capital improvements. As the owners purchased the properties they renovated each vacant unit and the exteriors leaving a very wellmaintained and attractive property. Roofs, HWT and HVAC units have been replaced in last 6-10 years allowing new owners nearly adecade with little roof expenses. The owners also replaced all flooring and appliances on vacant units during the first turn so most arein very good condition. Over the last two years the owners have started using Luxury Vinyl Planks and CVT in the common areas of theunits to allow for at least a decade of turns with minimal replacement needed. The new owner should expect lower than average capitalexpenses for many years.

DESCRIPTIVE NARRATIVE

EXECUTIVE SUMMARY A t h e n s P o r t f o l i o

PROPERTYDETAILS

Property Name Loblobby Drive

Address Loblobby Drive, Athens, GA 30606

County Clarke

Year Built / Renovated 1985

Number ofUnits 22

Average UnitSize 924 SF

Average UnitRent $830

AverageRent/SF $0.92

Occupancy 100%

RAC Properties of Athens, INC is pleased to present the exclusive listing ofLoblolly Duplexes located at 112 Loblolly Road, Athens, GA 30606.Loblolly Road presents an investor the opportunity to acquire 11 separatelydeeded duplexes in a neighborhood located in a thriving submarket withthe potential to increase rents. The property is minutes from the University ofGeorgia and all units are two bedroom and one bathroom units. 924 SQFT.

Weschester Circle

PROPERTY DESCRIPTION A t h e n s P o r t f o l i o

Loblolly Dr

Local Map

PROPERTY DESCRIPTION A t h e n s P o r t f o l i o

F a i r O a k s

U n i v e r s i t y o f G e o r g i a

W e s t c h e s t e r

PROPERTY DESCRIPTION A t h e n s P o r t f o l i o

Map Showing

the 11

properties for

sale totaling

22 duplexes

PROPERTY DESCRIPTION

39

A t h e n s P o r t f o l i o

OverviewM A R K E T OVER VIEW

MARKET OVERVIEW A t h e n s P o r t f o l i o

Athens is a consolidated city–county in the state of Georgia, in the northeastern part of the

state, found in Clarke County. The University of Georgia is located in this college town, and

contributed to its initial growth. As of the 2015 census, the consolidated city-county had a

total population of 120,938. Athens is the sixth-largest city in Georgia, and the principal

city of the Athens-Clarke County, Georgia Metropolitan Statistical Area.

Athens is conveniently located in northeast Georgia, approximated one hours drive from

Atlanta. Access to Athens is provided by US Highways 29, 59, 72, 78, 129 and 441. The

County was named one of the “Top 10 Small-Sized Counties” in the National Fourth

Economy Community Index.

Quality of Life

Athens is a clean, attractive and progressive town with a distinct southern flair. The local

University of Georgia is the centerpiece of the area’seconomy. Athens is noted as a center

Home to University of Georgia

■ The University of Georgia is the County’s largest employer, with a total economic

impact of $2.1 Billion.

Low Costs of Living and Doing Business Attract Jobs

■ A pro-business environment, educated workforce and low cost of living are some of the

reasons Athens has received numerous economic accolades, including “Best Places in

Georgia for Job Seekers” (NerdWallet), “Best Small Places for Business and Careers”

(Forbes) and “Today’s Best Cities for Jobs” (CareerBuilder).

Athens, Georgia

Market Highlights

Growing, Diverse Economy

■ Athens is one of the fastest growing areas of the country, with a diverse economy driven

primarily by eduction, healthcare and manufacturing.

ATLANTA-SANDY SPRINGS-MARIETTA METRO

ATHENS

ATLANTA

for pop music—REM and the B-52’s are from here—and the entertainment scene

includes plenty of live music. Other arts and cultural amenities emanate from the

university.

Athens is home to the Georgia Museum of Art, the official state museum of art for

Georgia, which provides free admission to the public for all exhibitions. The Georgia

Theatre has served as a significant performance venue for emerging and established

musicians and has been host to performances by The Police, Dave Matthews Band,

Beck, Warren Zevon (in addition to Athens’ own R.E.M. and B-52’s).

Healthcare

Athens boasts three high-tech hospitals: Athens Regional Medical Center, St. mary’s

Health Care System and Landmark Hospital. Athens Regional is one of Northeast

Georgia’s largest health care systems and has been recognized as among the best hospi-

tals in the region for gastroenterology, pulmonary and surgical procedures, oncology

and cardiology.

MARKET OVERVIEW A t h e n s P o r t f o l i o

MAJOR EMPLOYERS INDUSTRYNUMBER OF

EMPLOYEE

S

THE UNIVERSITY OF GEORGIA HIGHER EDUCATION 9,800ATHENS REGIONAL MEDICAL CENTER HEALTHCARE 3,384

CLARK COUNTY SCHOOL DISTRICT EDUCATION 2,800

PILGRIM’S FOOD PROCESSING 1,800

ATHENS-CLARKECOUNTY GOVERNMENT 1,619

CATERPILLAR EXCAVATORS AND TRACTORS 1,700

ST. MARY’S HEALTHCARESYSTEM HEALTHCARE 1,348

DIAL AMERICAL TELEMARKETING 500

POWER PARTNERS, INC. TRANSFORMERS, CHILLERS, SOLAR PANELS 480

BALDOR INDUSTRIAL MOTORS 480

CARRIERTRANSICOLD TRUCK REFRIGERATION UNITS 450

MERIAL ANIMAL HEALTH PRODUCTS 450

BURTON & BURTON BALLOONS AND GIFT PRODUCTS 300

SKAPS NON-WOVEN PLASTICS 235

NORAMCO, INC. MEDICAL GRADE PRODUCTS 210

The University of Georgia

The University of Georgia, is located on a 762-acre campus near downtown Athens. In 2015, UGA was ranked #10 among

public univesities in the New York Times College Access Index. The university is classified in the highest ranking, “R-1:

Doctoral Universities – Highest Research Activity” with a “More Selective” student body by the Carnegie Classification of

Institutions of Higher Education. UGA enrolls more than 36,000 students and is composed of 17 schools and colleges. The

University’s economic impact on the city of Athens is significant. According to a study by the UGA Selig Center for Economic

Growth, there are two “off-campus jobs” created for each on-campus job at the university.

University of Georgia By the Numbers

■ 460 Buildings on 762 Acres inAthens Main Campus

■ University presence in 30 Georgia counties: 41,539acres

■ 1st State-chartered University

■ NCAA Division 1 - Southern Conference

■ 42 National Championships, including 30 since1999

■ 300,000 Living Alumni

■ Top-ranked research library with 4.7 million volumes

■ 23 Rhodes Scholars

MARKET OVERVIEW A t h e n s P o r t f o l i o

MARKET OVERVIEW A t h e n s P o r t f o l i o

$0 -$15,000 27.7%

$15,000 - $24,999 14.3%

POPULATION

2020 Population 128,734

HOUSEHOLDS

2010 Households 39,682

2015 Households 47,511

2020 Households 50,459

2015 Average Household Size 2.36

2015 Daytime Population 54,597

2015 Owner Occupied Housing Units 28.7%

2015 Renter Occupied Housing Units 59.2%

Population

In 2015, the population in your selected geography is 121,985. The population has changed by

20.28% since 2000. It is estimated that the population in your area will be 128,734 five years from

the Entire US average which is 37.6. The population density in your area is 1,007.96 people per

square mile.

Households

There are currently 47,511 households in your selected geography. The number of households has

changed by 19.73% since 2000. It is estimated that the number of households in your area will be

50,459 five years from now, which represents a change of 6.20% from the current year. The average

household size in your area is 2.36 persons.

Income

In 2015, the median household income for your selected geography is $32,756, compare this to

the Entire US average which is currently $54,148. The median household income for your area

has changed by 14,64% since 2000. It is estimated that the median household income in your area

0.08% Native American and 4.23% Asian/Pacific Islander. Compare these to Entire US% aver-

ages which are: 70.98% White, 12.77% Black, 0.19% Native American and 5.25% Asian/Pacific

Islander. People of Hispanic origin are counted independently of race. People of Hispanic origin

$25,000 - $34,999 10.2% make up 10.76% of the current year population in your selected area. Compare this to the Entire

$35,000 - $49,999 13.3% US% average of 17.53%.

$50,000 - $74,999 14.7% Housing

$75,000 - $99,999 7.4% In 2000, there were 16,794 owner occupied housing units in your area and there were 22,888

$100,000 - $149,999 7.4% renter occupied housing units in your area. The median rent at the time was $455.

$150,000 + 5.0% Employment

2014 Median Household Income $32,756 In 2015, there are 54,597 employees in your selected area, this is also known as the daytime

2014 Per Capita Income $21,748 population. The 2000 Census revealed that 61.70% of employees are employed in white-collar

2014 Average Household Income $53,167occupations in this geography, and 38.37% are employed in blue-collar occupations. In 2015,

unemployment in this area is 5.93%. In 2000, the average time traveled to work was 20.4 minutes.

Demographic data © 2015 by Experian/Applied Geographic Solutions.

2010 Population 101,421 now, which represents a change of 5.53% from the current year. The current population is47.77%

2015 Population 121,985 male and 52.23% female. The median age of the population in your area is 26.7, compare this to

2014 Vacant

2019 Owner Occupied Housing Units

9.1%

28.8%

will be $38,595 five years from now, which represents a change of 17,83% from the current year.

The current year per capita income in your area is $21,748, compare this to the Entire US average,

2019 Renter Occupied Housing Units 59.2% which is $29,638. The current year average household income in your area is $53,167, compare

2019 Vacant 9.5% this to the Entire US average which is $77,468.

INCOME

Race & Ethnicity

The current year racial makeup of your selected area is as follows: 61.06% White, 26.99% Black,

DEMOGRAPHICS - CLARKE COUNTY