EXECUTIVE SUMMARY

LeverageIRR18%

AveragecashoncashYield12.7%

Equitymultiple3.8X

Industrial-styleenvironmentallyresponsibledesignwithprogramtocatertotheexpectationsofthemillennials.

Designinaccordancewiththeneighborhood,andadaptedtotheneedsforliveworkandplay

PROGRAM ALLOCATION

FIRSTFLOORPLAN SITEPLAN

• Pedestrian-friendlyandinvitingtothecommunity• Utilizingrooftopsforopenspace• Stormwatermanagementandreuseofstormwater• Reuseofexistingon-sitematerials

GIVING BACK

MAP COMPS

Hotel&Market

SUPPLY AND DEMANDThesupplyhasovercomethedemandinthelastsixyears—however,thedemandhasseenasteadygrowthyearbyyear.Theprojectedchangeinoccupancyforthenextthreeyearsvariesbetween-2%and2%,andtheaveragedailyroomisprojectedtoremainstable.InDowntown andMidtownAtlanta,theaverageoccupancyratein2015was70%withaveragerateof$140andRevPar of$98.60,accordingtotheHorwath HTLreport.

HOTEL

MARKET AccordingtoFranklinStreetrealestateadvisers,mixed-useprojectsfeaturingapartmentunitsremainattractiveinAtlanta,particularlywhenagrocerystoreanchorisinvolved.Currently,thegrocerystoresnearTheFelixsitearenotmixed-usesites. Theoptions foralocalgroceryare1.5milestoreachKroger,1.7milestoreachWal-MartSupercenter,andasfaras2milestoreachPublixfromthesite.TheRelatedGroupannouncedplansfora38-storyapartment-retailtoweron22Fourteenth Streettoincludea70,000squarefeet,multi-levelWholeFoodsMarketwhich isapproximately2milesawayfromtheFelix.

Retail LedbythemassiveAtlanticStationand12th&Midtownmixed-useredevelopmentprojects,Midtownhasplayedhosttosignificantretailconstructioninrecentyears.TheSubmarkettrendspresentapositivedemand,atotalof59,000squarefeetforthenextfouryears.TheFelixwilldeliver33,4446squarefeetofserviceandfoodretailspacein2019.

MAP COMPS

Office&Condos

Inthe3and5-mileradius,only46%ofthepopulationarehomeowners,showingthepotentialdemandforTheFelixcondo.Theaveragehomevalueisinlinewiththeaveragesale pricesofTheFelixpotentialprice.

CONDO

OFFICE Amodestpositivenetabsorptionisexpectedovertheremainderoftheyear,alongwithnonewsupplydeliveries,whichwillshaveafewbasispointsfromthevacancyrate.Rentgrowthratesfortheyearareexpectedatapproximately4%onaverage.

AccordingtotheMotionPictureAssociationofAmerica,Georgianowranksthirdindomesticproduction,behindCaliforniaandNewYork.The248filmandtelevisionproductions shot inGeorgiarepresent$1.7 billionindirectspending inthestate.AccordingtotheGeorgiaDepartmentofEconomicDevelopment(GDED),2016figuresareprojectedtosurpassthoseof2015.Theindustry'sgrowthhasbeenfueledbymultiplefactors,includinga30%taxcreditincentive.

STUDIO

SUPPLY AND DEMAND

FEASIBILITY ANALYSIS

DEVELOPEMENT TIMELINE

2016 2017 2018 2019 2020 2021 2022PRE-CONST. 58

PARCELA-MARKET

PARCELB– HOTEL&CONDOS

PARCELC– OFFICE

PARCELD– STUDIO 5

6

6

1

2

1- MarkettempCertificationofOccupancy2- FinalCertificateofOccupancy

CONSTRUCTION LOAN

INVESTINATLANTA - NMTC

2026

PERMANENT LOAN

CONDOSALES

CASHFLOW - PARCELA- MARKET

CASHFLOWB/C/D

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EXIT

JOINT VENTURE STRUCTURE

THIS AGREEMENT OF LIMITED PARTNERSHIP OF The Felix Partners, LLC (“agreement”) is entered into as of 1th day August, 2016 (“Effective Date”), by T3 Development, a Delaware limited liability company, as a General Partner, and AMC, a Florida limited liability company, as a Limited Partner. THIS LIMITED PARTNERSHIP OF The Felix Partners, LLC (“agreement”) shall invest 100% of there capital in The Felix, LLC (“Real Estate Property”).

JOINT VENTURE STRUCTUREContribution: On the Effective Date AMC, LLC shall contribute to the Partnership $8.2MM in the form of land title. This contribution represents 45% of the land acquisition price, the remaining $10,000,000 should be paid to AMC, LC from The Felix, LLC.

On the Effective Date T3 Development, LLC shall contribute to the Partnership $1.5MM in cash.

Contribution on the Real Estate Property: On the Effective Date The Felix Partners, LLC shall invest 100% of there capital in The Felix Equity LLC (“Real Estate Property”). The Partners agree to engage with a third party investor in the Real Estate Property company, of each will have a preferred return.

Waterfall#1:The cash available for distribution shall be distributed, following order of priority. (a) First, 81% to REITS Fund III and 19% The Felix Partners LLC until the 15% Preferred Return of REITS Fund III has been reduced to zero; (b) Next, 70% to REITS Fund III and 30% The Felix Partners LLC until the 20% Preferred Return of REITS Fund III has been reduced to zero; (c) Next, the remaining cash available for distribution after 20% Preferred Return of REITS Fund III has been reduced to zero, shall be distributed 60% to REITS Fund III and 40% The Felix Partners LLC.

Waterfall # 2: The “cash available for distribution” on the The Felix Partners LLC, shall be distributed in accordance with their Percentage Interest: 16% for T3 Development LLC and 84% for AMC LLC.

SOURCE AND USE

FINANCIAL

VALUATION AND SENSITIVITY ANALYSIS