Target Properties: CEAI pursues apartment communities of 100 units and larger in stable locations. Our primary focus is on B and C+ quality projects that present the opportunity for the Cohen-Esrey companies to leverage their expertise to add value. Our strategies for value creation include a variety of techniques, including the following:

• Need for physical improvements or additional amenities to drive increases in occupancy and rental rates.
• Reduction of operating expenses through best-in-class management techniques.
• Change of use. o Resolving existing financing difficulties through the creative utilization of debt and equity.
• Development of adjoining land.
• Sale of a portion of an asset.

While our typical acquisition involves an outright sale, we are also able to consider joint ventures and other creative ownership options. We also have extensive experience in the acquisition and resolution of non-performing and sub-performing debt.

Low-Income Housing: Our firm has extensive experience in the ownership and management of low-income housing and actively seeks to purchase conventional apartments as well as those utilizing HUD contracts and Section 42 tax credits. Our minimum size of 100 units generally applies to low-income projects.

Acquisition Process: CEAI will accept submissions from brokers or principals. Submissions should be forwarded directly to the respective Director of Acquisitions

Property Submission Materials: Upon submission of a property to CEAI for consideration, the following information should be delivered to the respective Director of Acquisitions:

1. Three (3) years of historic operating statements
2. Current year-to-date operating statement
3. Current rent roll detailing market rents vs. actual rents
4. Unit mix summary detailing square footage per unit type
5. Rental comps
6. Sale comps
7. Subject market and sub-market information

In order to facilitate receipt of this information, the Director of Acquisitions will sign a confidentiality agreement when needed. If requested, the Director of Acquisitions will also provide each broker with a one-page synopsis of CEAI that can be provided to the owner of the asset.

Review and Analysis: The review process includes initial underwriting, preliminary review by the Acquisition Director, property visit(s) and preliminary due diligence, letter of intent, final review and approval by investment committee, execution of the purchase contract, and final due diligence.

On conventional acquisitions, CEAI will typically seek a sixty (60) day inspection period and ninety (90) day financing contingency with earnest money turning non-refundable upon expiration of the financing contingency period. Due to the inherent characteristics of LIHTC deals, CEAI will ask for a sixty (60) day inspection period and one-hundred eighty (180) day financing contingency period. In either case, closing will most often occur thirty (30) days after expiration of the financing contingency period.

Geographic Areas: CEAI seeks to acquire properties in cities with populations from 50,000 to one million people over a 30 state region that includes most of the country. Acquisition opportunities are sourced by regional Acquisition Directors, who work with the local brokerage community.

R. Lee Harris, CRE, CPM Investment Partner