The purpose of this Confidential Investment Offering Overview is to provide a summary of a possible future private investment opportunity that may be made available to a certain limited number of accredited investors. This is not an offer to sell real estate and/or any type of security, partnership interest, public or otherwise.

The contemplated offering, if made available formally, would provide Investors with the opportunity to acquire an interest in a to-be-renovated, 180 unit apartment building (The Equitable Building) in the Central Business District of downtown Baltimore. The property was built in 1891 and is a National Historic Landmark. The nine-story 223,877 square foot building was originally constructed and is currently used as an office building. Downtown Baltimore’s residential revival is due in part to the local government’s encouragement of residential development by utilization of available tax subsidies and other incentives. These incentives merged with the area’s beautiful historic architecture have revitalized the housing environment for residential development. This redevelopment is supported by population growth, and in turn, the need for additional housing units over the next five years in the Downtown area.

Our entity is co-investing in this project with New York based developer, JK Equities, spearheaded by industry veteran Jerry Karlik. Karlik, with over 30 years of experience, has owned over 5,500 apartments and 5 million square feet of commercial real estate across the United States throughout his career. It is through his strong connections within YPO (Young Presidents Organization) that this off-market deal was brought to him.

Karlik and SMB Equity plan to close on the property by late Summer 2013 and immediately begin preparation for permit and construction plans for a new “Class A” apartment building. No zoning change will be required. Simultaneous to closing, all current office leases will expire and buyout/relocation agreements with remaining tenants whose lease terms expire after June 2014 will be negotiated. The building has 26,000 square feet of occupied street level retail which will remain as-is during and after construction with minimal disruption.

We anticipate that construction plans and tenant relocation will be complete by Q1 2014, at which time construction will commence and is expected to take approximately 10 months.

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