Investment Discipline

Through many years of experience investing in multifamily assets, the founders of K.R.I. Capital Partners have developed a Core Investment Discipline that serves as the backbone of the K.R.I. Capital Partners business model and guides all investment decisions. This disciplined approach to investing has allowed them to deliver extraordinary risk adjusted historical returns to their partners through many real estate cycles. This Core Investment Discipline is based on five guiding principles:

• Make honesty and integrity the foundation for everything we do.
• Select only projects that offer significant potential; don't pursue marginal deals.
• Perform extensive and focused due diligence on all projects, mitigate the relevant risks.
• Develop multiple exit strategies in anticipation of changing market conditions.
• Execute the planned exit strategy as quickly as possible to maximize ROI to partners and investors.

Acquisition Guidelines

The K.R.I. Real Estate Fund I, L.P.will invest in underperforming multifamily assets in the Southeast, Southwest and Midwest. Generally, the Fund will pursue projects in which our experienced management team can add significant value by repositioning the asset through investments in physical improvements and/or value added management.

Opportunity Parameters:

Location	Primary and secondary metropolitan areas in the Southeast, Southwest and Midwest
Submarkets	A to B- grade submarkets
Asset Size	150 units minimum or portfolios of similar size
Asset Quality	B+ to C grade apartment communities
Timing	Can close quickly or can be flexible to accommodate 1031 exchanges, etc.
Transaction Parameters	Can structure transaction to accommodate most scenarios including assumption of existing debt, cash purchase, etc.

Differentiating Factors

There are several things that set us apart from our peers. They include

• Our experience
• Our Core Investment Discipline
• Our business and operating culture
• Our deal sourcing advantage
• Our value added approach to managing projects

These factors, when considered together, have allowed the founders of K.R.I. Capital Partners to realize extraordinary historical returns for their investors and partners.

Experience

In this business, there is no substitute for experience. We are proud to be able to say that our management team has a combined 40 years experience in the real estate, private equity and lending arenas. We have been involved in transactions valued at more than $2 billion. Our deep experience includes operational, financial, legal, credit and transaction experience. This broad depth of experience has enabled us to earn extraordinary historical returns for our partners and investors through both up and down real estate cycles.

Core Investment Discipline

Our internally developed Core Investment Discipline sets us apart from our competition and is one of the main reasons the founders have historically earned extraordinary returns for their partners and investors. This discipline is followed on each and every project and is monitored by the investment committee.

Culture

Our culture is based on the principles of trust, integrity, professionalism and respect. We hold these principles in the highest regard and apply them to every relationship and every part of our organization. This includes our internal relationships with members of our team as well as our external relationships with investors, sellers, brokers, vendors, and other stakeholders.

Deal Sourcing Advantage

We work very hard to find suitable opportunities. We constantly call on property owners and develop local networks in target markets that allow us to find off-market, difficult and complex deals at fair prices and terms.

Because of our experience and reputation for getting tough deals done, sellers generally prefer to work with us. We have a reputation for honesty, integrity and an ability to get the deal done without repeated renegotiation of price and terms. We believe that taking the time to understand a seller's needs and structuring transactions accordingly is critical to the success of a deal. This philosophy allows us to structure our initial offer so that it is, to the extent possible, aligned with the seller's goals. The result is greater acceptance of our offers because they usually meet the seller's objectives.

Value Added Approach to Managing Projects

Although we will consider partnering with a local operator, we generally prefer to manage our properties in-house. This is because we have extensive experience operating apartment properties and generally are able to bring significant value through physical improvements and the implementation of proven operating strategies.