800 Place Apartments

| 855-740-4206

800 PLACE APARTMENTS¹

Real estate entrepreneurs who see opportunities where
others do not, creating higher returns to investor partners.

This information is intended solely for accredited investors² as such is defined in the Securities Act, and is not intended as an offer to sell, or the solicitation of an offer to buy any securities or ownership interests. Past or projected performance does not guarantee or predict future results; all projections and estimates contained herein are subject to change any time without notice. This investment opportunity may not be available in all states.

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TABLE OF

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LEGAL

DISCLOSURE

This material does not constitute an offer or solicitation to purchase securities. An offer can only be made by the Private Placement Memorandum (PPM). This document is an informational summary of prospective investment opportunity only.

The PPM and its exhibits contain complete information about the investment opportunity. This presentation has been prepared to summarize such information for prospective investors in the Company.

The information contained herein is not a substitute for an investor’s complete review of all of the information attached to the PPM as part of their own due diligence regarding this investment opportunity and its suitability for their investment portfolio.

This Offering is made only to “accredited investors,” as such term is defined in Rule 501 of Regulation D under the Securities Act of 1933 (the “Securities Act”), in reliance upon an exemption from registration provided in Section 4(a)(2) of the Securities Act and Rule 506(c) of Regulation D thereunder. This Offering is subject to a minimum of $5 million (the “Minimum Offering Amount”). All dollar amounts referenced herein refer to United States dollars.

The Manager anticipates that: (i) the Fund will not be registered as an investment company under the Investment Company Act of 1940, as amended; and (ii) the Manager will not be registered as an investment adviser under the Investment Advisers Act of 1940, as amended, or the laws of any state. Consequently, investors will not be entitled to certain protections afforded by some of those statutes.

Each investor should make its own decision whether this Offering meets its investment objectives and risk tolerance level. In making an investment decision each investor must rely on its own examination of the Fund and the terms of the Offering, including the merits and risks involved. Each investor and its representatives, if any, are invited to ask questions and obtain additional information from the Manager concerning the terms and conditions of the Offering, the Fund and any other relevant matters to the extent the Manager possesses such information or can acquire it without unreasonable effort or expense.

There is no public market for the Interests nor is any expected to develop, and the Interests are subject to restrictions on transferability and resale. Even if such a market were to develop, no distribution, resale or transfer of an Interest will be permitted except in accordance with the provisions of the Securities Act, the rules and regulations promulgated thereunder, any applicable state securities laws, including any registration or exemptions therefrom, and the terms and conditions of the Amended and Restated Operating Agreement of the Fund (the “Operating Agreement”) and Subscription Booklet for the Interests.

Any transfer of an Interest by a member of the Fund will require the consent of the Manager, which may be withheld in its sole discretion. All capitalized terms used but not defined in this Memorandum have the meanings ascribed to such terms in the Operating Agreement.

An investment in the Interests involves significant risks. Accordingly, each investor that purchases an Interest will be required to represent and warrant that it has read this Memorandum and is aware of and can afford the risks of an investment in the Fund. Investors should be aware that they will be required to bear the financial risks of this investment for an indefinite period of time.

Each investor will also be required to represent that it is acquiring the Interest for its own account, for investment purposes only, and not with any intention to resell or transfer all or any part of the Interest. This investment is suitable for an investor only if it has adequate means of providing for its current and future needs and can afford to lose the entire amount of its investment. Only investors who can bear the economic risk of the investment and the loss of their entire investment should invest in these securities. Refer to the section of this Memorandum titled “RISK FACTORS”.

This Memorandum may not be reproduced without the prior express written consent of the Manager. By accepting delivery of this Memorandum, each investor agrees not to divulge its contents to anyone other than to authorized accountants, financial planners, attorneys or similar advisers retained to render professional advice related to the purchase of the Interests, and to keep confidential the existence of this Memorandum and the information contained herein or made available in connection with any further investigation of the Fund. If an investor does not purchase any Interests, the investor agrees to return this Memorandum to the Manager.

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EXECUTIVE

SUMMARY

Across the Smartland platform, we’ve established a track record of high-performing investments with our entrepreneurial vision, discipline, and execution through buying right & enhancing revenue

RESILIENT INVESTMENT OPPORTUNITY IN IDEAL LOCATION

Smartland has identified the 800 Place Apartments¹ for an off-market acquisition. 800 Place Apartments¹ is approximately an 800 unit vintage multifamily apartment community well-located in Cleveland, Ohio. Constructed in 1969, the Property is a mismanaged apartment community that provides significant upside through interior unit renovations, smart technology enhancements, new pet park, bike stations, electric car charging stations, enhancing the common areas, and improving operations. Through our comprehensive value-add and operational turnaround program, projected capital improvements of $10,475 per unit in interiors and $8,650 per unit in exteriors to increase current average rents across the property by $178 per unit per month which is conservatively underwritten at 16% below C Class comparable rents and hold the asset for 5 years. This will result in projected 2x equity multiple, 9.2% average cash on cash return, and 17% internal rate of return.

As a hands-on vertically integrated operator, 800 Place Apartments¹ fits within our exact criteria of heavy lifts overlooked by inexperienced operators with the opportunity to increase the property value significantly by improving the tenant base, attracting higher rents, and creating a better community in a growing market. We have a track record repositioning vintage multifamily properties and delivering superior returns. Our strategy is differentiated by focusing on vintage multifamily repositions to gorgeous, updated C/B class apartments. We are able to minimize risk by acquiring at attractive prices and drive significant rent increase through operational efficiencies.

PROPERTY SUMMARY
Approximate Unit Count:	800
Average Rent:	$670 ($0.81/sf)
Current Occupancy:	93.6%
Year Built:	1969
Location:	Midwest

INVESTMENT HIGHLIGHTS

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CAPITAL

REQUEST

Collectively, the Smartland GP LLC (“Manager”) team, combined with all the affiliates of the manager,
has successfully executed real estate investments representing over $250M dollars.

To execute the planned resurgence of The 800 Place Apartments¹, SMARTLAND is seeking $10,700,000 in equity investment from Accredited Investors². The investor terms are as follows:

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800 PLACE APARTMENTS¹

PROFORMA

Smartland’s Value-Add Program will take the current NOI at acquisition $2.3M to 3.9M in 5 years at exit.

Increase rents by 8.4% per year by modernizing units
Create significant increase in other income (utility reimbursement, attracting pet-friendly tenants, Smartland WiFi)
Provide premier clubhouse, gym, and exterior pool renovations for apartment community amenities
Deliver Smartland Best-In-Class Property Management

	Acq.	Year 1	Year 2	Year 3	Year 4	Year 5

Rental Income	$6,380,609	$5,999,655	$6,958,050	$8,174,436	$8,948,875	$9,112,421
Additional Income	$415,179	$449,974	$521,854	$613,082	$671,166	$683,432
Total Income	$6,796,789	$6,449,630	$7,479,904	$8,787,518	$9,620,040	$9,795,853

Management Fee	$347,782	$257,985	$299,196	$351,501	$384,801	$391,835
Salaries	$734,940	$493,197	$572,418	$673,666	$738,066	$751,521
Administrative	$528,090	$159,329	$185,436	$219,623	$241,295	$245,655
Maintenance	$722,763	$339,278	$342,652	$692,053	$698,803	$705,551
Utilities	$1,055,447	$1,057,850	$1,068,371	$1,078,893	$1,089,414	$1,099,936
Insurance	$173,482	$199,575	$201,561	$203,545	$205,531	$207,515
Taxes	$846,982	$1,506,945	$1,536,761	$2,233,916	$2,276,432	$2,318,950
Marketing	$23,453	$53,150	$61,864	$73,269	$80,499	$81,953
Total Expenses	$4,432,939	$4,067,308	$4,268,258	$5,526,464	$5,714,841	$5,802,915
	65.23%	63.06%	57.06%	62.89%	59.41%	59.24%
Net Operating Income	$2,362,849	$2,382,322	$3,211,646	$3,261,054	$3,905,201	$3,992,938

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CAPITAL

IMPROVEMENTS

To return The 800 Place Apartments¹ to its once flourishing state,
SMARTLAND has a variety of value-add opportunities to act upon:

Transform to newly renovated SMART units; above market renovation in immediate market of over 7,000 units
New and consolidated management will be able to capitalize on currently low price per sq. ft. capture
Under and misused appropriated space on property will be utilized to drive additional income and increase tenant retention through more active tenant engaging amenities
Proposed community amenities are unmatched among any multifamily community in the submarket

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UNIT

MIX

From One Bedroom Apartments to Three Bedroom Suites, the 800 Place Apartments¹ will be able to accommodate any tenant who walks through our leasing office. The 800 Place Apartments¹ boasts over 20 different floor plans. In addition, the 800 Place Apartments¹ have a fraction of units affiliated with a premier school district and will drive value to the monthly rent roll.

Unit Type	Unit Count	Sq. Ft.	Avg Rent at Acq.	PP Sq. Ft. at Acq.	Avg. Rent at Disp.	Avg. PP Sq. Ft. at Disp.
1/1	177	520-882	$650	$1.03	$814	$1.28
2/1	308	680-880	$733	$0.89	$904	$1.10
2/1.5	200	720-882	$753	$0.90	$939	$1.11
2/2	18	1,100	$794	$0.72	$1,049	$0.95
3/1.5	73	860-1,100	$867	$0.85	$1,058	$1.03
3/2	24	900-1,210	$892	$0.86	$1,124	$1.10

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RENT & ONE BEDROOM

COMPARABLES

Property	Address	Year Built	Units
The Vantage	27040 Cedar Rd	1969	631
Sherri Park Apartments	2111 Acacia Park Dr	1969	292
Oliver House	3715 Warrensville Rd	1960	206
Solon Club Apartments	26463 Solon Rd	1967	195
Gates Mills Place	6807 Mayfield Rd	1968	1,178
Smartland 800 Place Apartments¹	800 Place Dr¹	1969	800

Property	Unit Type	Sq. Ft.	Rent per Unit	Rent PSF
The Vantage	1 Bedroom	825	$1,207	$1.46
Sherri Park Apartments	1 Bedroom	827	$1,184	$1.43
Oliver House	1 Bedroom	855	$990	$1.16
Solon Club Apartments	1 Bedroom	549	$849	$1.55
Gates Mills Place	1 Bedroom	734	$817	$1.11
Comp Averages	1 Bedroom	763	$975	$1.28
Smartland 800 Place¹ Upgrade	1 Bedroom	640	$814	$1.27
*We conservatively underwrote rents $161 below current average comparable rental rates. Smartland 800 Place Apartments¹ upgraded units and apartment community will be the newest C+ product at a much more attractive lower rent to above C comps, which the comparable market will not be able to lower to compete. This protects our downside.

TWO & THREE BEDROOM

COMPARABLES

Property	Unit Type	Sq. Ft.	Rent per Unit	Rent PSF
The Vantage	2 Bedroom	1,082	$1,445	$1.34
Sherri Park Apartments	2 Bedroom	1,226	$1,571	$1.28
Oliver House	2 Bedroom	1,245	$1,190	$0.96
Solon Club Apartments	2 Bedroom	794	$943	$1.19
Gates Mills Place	2 Bedroom	1,010	$1,009	$1.00
Comp Averages	2 Bedroom	1,056	$1,194	$1.13
Smartland 800 Place¹ Upgrade	2 Bedroom	845	$922	$1.09
*We conservatively underwrote rents $272 below current average comparable rental rates. Smartland 800 Place Apartments¹ upgraded units and apartment community will be the newest C+ product at a much more attractive lower rent to above C comps, which the comparable market will not be able to lower to compete. This protects our downside.

Property	Unit Type	Sq. Ft.	Rent per Unit	Rent PSF
The Vantage	N/A	N/A	N/A	N/A
Sherri Park Apartments	N/A	N/A	N/A	N/A
Oliver House	3 Bedroom	1,774	$1,602	$0.90
Solon Club Apartments	N/A	N/A	N/A	N/A
Gates Mills Place	3 Bedroom	1,308	$1,389	$1.06
Comp Averages	3 Bedroom	1,377	$1,421	$1.03
Smartland 800 Place¹ Upgrade	3 Bedroom	1,037	$1,074	$1.04
*We conservatively underwrote rents $347 below current average comparable rental rates. Smartland 800 Place Apartments¹ upgraded units and apartment community will be the newest C+ product at a much more attractive lower rent to above C comps, which the comparable market will not be able to lower to compete. This protects our downside.

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MANAGEMENT

STRATEGY

The management team of the Manager formulated a business plan and SWOT analysis for 800 Place Apartments¹, ensuring optimal ownership, and exit strategies.

Revenue Enhancements

Position the asset to meet market demand
Determine physical enhancement needs
Identify rebranding opportunities
Develop tactical marketing plan
Cultivate ancillary revenue streams
Examples: Pet fees, Internet service provider, vending, laundry, EV charging stations, late fees, parking

Cost Reductions

Understand acceptable ranges of controlled expenses
Improve efficiency
Capitalize on economies of scale
Pursue real estate tax appeals
Examples: Water and energy efficient appliances, garbage removal, smart thermostats

Strategy Focus

Target Market Selection
Value-Add
Multi-Family
Vintage Property Ratings
A to C Property Location Ratings
Minimum 10% below market rents
Opportunity for Community Amenities

Everyone else in the market avoids heavy lifting projects because it’s difficult. We thrive on these projects and have little to no competition in the market.

Vadim Kleyner,

CEO

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PROPOSED

COMMUNITY AMENITIES

We provide SMART technology and the best amenities to our tenants to enhance tenant satisfaction and increase occupancy rates.

SMART units
Renovated State of the Art Gym
Newly Renovated Pool
Modern Pet Park
Kids Playground
On-Property Convenience Store
Subway Restaurant
EV Charging Stations
Modern Gym
Package Center
Bike Station
Gardens
Exterior Pool
Clubhouse

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RENOVATION

PLAN

Smartland employs a proprietary expedited turnaround process for its multi-family residential properties. To do this, we use pre-palletized materials (anything from vanities, to countertops, to flooring is assembled on a pallet and delivered in assembled form to the unit), and crews of experienced members to completely renovate the units from start to finish.

Before - 800 Place Apartment¹ Example Unit

After - Actual Smartland Renovated Unit

RENOVATION

PLAN

Units will feature an enhanced and modernized bathroom. Key features include, watersense plumbing fixtures, new resilient flooring covering, new LED lighting, and lastly a premium modern ceramic tile shower surround. Although this bathroom is new to the 800 Place Apartments¹, this is a standard staple in Smartland’s renovation process for all multifamily renovations, across all properties.

Before - 800 Place Apartment¹ Example Unit

After - Actual Smartland Renovated Unit

RENOVATION

PLAN

Modernization of the kitchen area in units features stainless steel appliances coupled with modern kitchen cabinets that will set the building at the forefront within the community, outpacing similar properties in the immediate area. A sample of an actual Smartland renovated kitchen is found on the right hand side, the rendering mimics the look and feel of future kitchen spaces in the 800 Place Apartments¹.

Before - 800 Place Apartment¹ Example Unit

After - Actual Smartland Renovated Unit

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SALES

COMPARABLES

Smartland’s Upgraded 800 Place will be approximately 50% of Replacement Value, Mitigating Any Future Risk from New Development

Property	Address	Year Built	Units	Sales Price	Price Per Unit	Sale Date
The Vantage	27040 Cedar Rd	1969	633	$95,000,000	$150,078	Jan-19
The Statler	1127 Euclid Ave	1912	295	$40,000,000	$135,593	Jan-18
The Village at Mayfield	919 Aintree Rd	1966	252	$27,150,000	$107,738	Jun-18
Owl's Nest	2020 Taylor Rd	1974	260	$18,300,000	$70,384	Apr-18
The Drake	6503 Marsol Rd	1965	986	$61,132,000	$62,000	Aug-19
Comp Averages		1957	485	$48,316,400	$99,580
Smartland 800 Place Upgrade		1969	800	$69,500,00	$99,580
*We conservatively underwrote our disposition at $86,875 per unit, which is more than 12% below current average comparable sales comps. Smartland 800 Place Apartments¹ upgraded units and apartment community will be the newest C+ product compared to the above C comps.

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MARKET
OVERVIEW

CLEVELAND, OHIO

The Greater Cleveland area, located on the southern shore of Lake Erie, continues to be one of the preferred locations in the State of Ohio. Greater Cleveland’s population encompasses a five-county area, which is home to 3.1 million residents. Located in Cuyahoga County, the largest in Ohio with a population of 1,280,122, Cleveland is the 29th largest Metropolitan area in the United State. The Average per capita income (according to recent data from Moody’s Economy.com) is estimated to be $48,468 and total employment stands at 1.39 million workers.

3.1M CLEVELAND POPULATION

$430 MILLION IN BUSINESS & REAL ESTATE VENTURES

175,066+ CITY LABOR FORCE

FIVE FORTUNE 500 COMPANY CORPORATE HEADQUARTERS

$134B GROSS METRO PRODUCT

14.05M CONVENTION AND LEISURE VISITORS

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MAJOR EMPLOYERS

AREA MAP

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BENEFITS OF A

LOCAL OWNER/OPERATOR

Smartland has been a major force in the Cleveland real estate market for the past decade. The experience and knowledge cultivated over this time will be essential to saving and stabilizing the 800 Place Apartments¹

EXCEPTIONALLY QUALIFIED TEAM

Senior Management Team with significant experience and diverse backgrounds in workforce housing, asset management, construction, operations, tech and the Cleveland market
$250 Million in transaction experience across Senior Management Team
Track record generating net IRRs of over +27% over the last ten years

ATTRACTIVE STRATEGY

Heavy lifters - fewer competitors in the space, the opportunity for higher returns
By going after D/C assets that are mismanaged, we are able to acquire at attractive cost basis and force appreciation through value creation
Identifying assets where we are 50% less than replacement cost, minimizes risk due to new construction not being able to compete at the same price
Attract top 5% of renters at each of our apartment communities resulting in higher occupancy and longer occupancy

NICHE STRATEGY

UNIQUE VALUE CREATION

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TEAM

BIOS

VADIM KLEYNER

CEO

As founder and CEO of Smartland, Vadim focuses on the company’s overall strategies, including future geographic expansion and assembling the best possible team. A serial entrepreneur who got his start in IT, he continues to apply that extensive IT background to create competitive advantages. Prior to founding Smartland, Vadim served as VP at Cleveland Restoration Group, where he developed successful real estate investment models that have since been adopted throughout the nation. His partners, investors, and team regard his strengths as being strategic, analytical, and visionary.

IRINA KLEYNER

Broker

As the Real Estate Broker, Irina uses her intricate knowledge of the buying and selling process in overseeing all of the real estate transactions. As a liaison between real estate agents, clients, escrow companies, and mortgage brokers, Irina closely monitors each stage of the deal from contract signing through closing to efficiently manage the home sale or purchase transaction. She holds a Bachelor Degree in Physics Science from Gomel State University, and is a member of the National Association of Realtors and the Akron Cleveland Association of Realtors.

STEVEN GESIS

EVP • COO

Steven is responsible for the strategic direction and performance of all teams within Smartland. As EVP Steven is the catalyst for all department directors to ensure the Smartland vision and Smartland standards are being implemented and adhered to. Prior to joining Smartland, Steven was an Operations Administrator at the Cleveland Clinic, where he was instrumental in the implementation of new strategies and efficiencies. Steven holds an MBA from CSU Monte Ahuja School of Business as well as a Bachelor’s degree from The Ohio State University.

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SMARTLAND

HISTORY

Smartland LLC, founded in Cleveland, OH in 2013, has grown to include a vertically integrated team focused on investment management services, property management, marketing, architecture, design, and construction.

Having aligned, interests, Smartland does not only work for our investors but our employee’s compensation is tied to performance! Our 4 main partners invest their personal funds in every project. This means that by the time we are ready to do a deal, we are so confident in all aspects, that we put our own family funds at stake.

Today, Smartland is an ecosystem-based, forward thinking, investor focused organization. Smartland has achieved a track-record of high returns on its investments due to its entrepreneurial, contrarian thinking and operational excellence.

TRACK RECORD OF MANAGER AFFILIATES

$45M

of capital deployed to date.

27.45%

Average Investor Returns

2.1x

Multiple Return on Exited Funds

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SMARTLAND

PARTNERS

PROFESSIONAL PARTNERS

CFO & Administrators:

Legal:

Marketing:

Tax & Audit:

PROVIDER PARTNERS

SERVICE ADVISORS

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REAL ESTATE

TERMS & DEFINITIONS

Below, definitions are included to provide more details on descriptions within offering memorandum.

800 Place Apartments is a placeholder name of the target property that will be disclosed at a later date. At this time, the actual property name is confidential.
This offering is for accredited investors only. Investment in the fund will require third party verification of accreditation status.
Capitalization Rate (Cap Rate) – A rate of return on a real estate investment property based on the expected income that the property will generate. Capitalization rate is used to estimate the investor’s potential return on his or her investment.
Cash Flow – Cash generated from the operations of a company, generally defined as revenues less all operating expenses.
Cash-on-Cash – A rate of return often used in real estate transactions. The calculation determines the cash income on the cash invested.
▴Calculated: Annual Dollar Income Return / Total Equity Invested = Cash-on-Cash
Debt Service Coverage Ratio (DSCR) – It is the multiples of cash flow available to meet annual interest and principal payments on debt. This ratio should ideally be over 1. That would mean the property is generating enough income to pay its debt obligations.
Internal Rate of Return (IRR) – The rate of return that would make the present value of future cash flows plus the final market value of an investment opportunity equal the current market price of the investment or opportunity. The higher a project’s internal rate of return, the more desirable it is to undertake the project.

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CONTACT US

NEXT STEP

Please email us your questions, we are happy to answer.
If you want to talk further, please call a member of our investor relations team.

SUMIT KOVOOR
Vice President of Investor Relations
330.984.2134
sumit.k@smartland.com

TOM OTT
Director of Investor Relations
440.749.4043
tom.o@smartland.com

MATT FRITZ
Director of Marketing
330.962.6014
matt.f@smartland.com

1221 BRICKELL AVE, SUITE 940, MIAMI, FLORIDA 33131

800 PLACE APARTMENTS1

TABLE OF

CONTENTS

LEGAL

DISCLOSURE

EXECUTIVE

SUMMARY

RESILIENT INVESTMENT OPPORTUNITY IN IDEAL LOCATION

INVESTMENT HIGHLIGHTS

CAPITAL

REQUEST

800 PLACE APARTMENTS1

PROFORMA

CAPITAL

IMPROVEMENTS

UNIT

MIX

RENT & ONE BEDROOM

COMPARABLES

TWO & THREE BEDROOM

COMPARABLES

MANAGEMENT

STRATEGY

Revenue Enhancements

Cost Reductions

Strategy Focus

PROPOSED

COMMUNITY AMENITIES

RENOVATION

PLAN

Before - 800 Place Apartment1 Example Unit

After - Actual Smartland Renovated Unit

RENOVATION

PLAN

Before - 800 Place Apartment1 Example Unit

After - Actual Smartland Renovated Unit

RENOVATION

PLAN

Before - 800 Place Apartment1 Example Unit

After - Actual Smartland Renovated Unit

SALES

COMPARABLES

MARKET OVERVIEW

CLEVELAND, OHIO

3.1M CLEVELAND POPULATION

$430 MILLION IN BUSINESS & REAL ESTATE VENTURES

175,066+ CITY LABOR FORCE

FIVE FORTUNE 500 COMPANY CORPORATE HEADQUARTERS

$134B GROSS METRO PRODUCT

14.05M CONVENTION AND LEISURE VISITORS

MAJOR EMPLOYERS

AREA MAP

BENEFITS OF A

LOCAL OWNER/OPERATOR

EXCEPTIONALLY QUALIFIED TEAM

ATTRACTIVE STRATEGY

NICHE STRATEGY

UNIQUE VALUE CREATION

TEAM

BIOS

VADIM KLEYNER

CEO

IRINA KLEYNER

Broker

STEVEN GESIS

EVP • COO

SMARTLAND

HISTORY

TRACK RECORD OF MANAGER AFFILIATES

$45M

27.45%

2.1x

SMARTLAND

PARTNERS

PROFESSIONAL PARTNERS

CFO & Administrators:

Legal:

Marketing:

Tax & Audit:

PROVIDER PARTNERS

800 PLACE APARTMENTS¹

800 PLACE APARTMENTS¹

Before - 800 Place Apartment¹ Example Unit

Before - 800 Place Apartment¹ Example Unit

Before - 800 Place Apartment¹ Example Unit

MARKET
OVERVIEW