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Acquisitions Criteria

Sercy Capital Group LLC provides equity, either alone or with joint venture partners, for the
acquisition, development, repositioning and/or recapitalization of real estate properties in most
major asset classes. SCG is actively seeking opportunities meeting the following general
investment criteria:

Transaction Size

Direct investments up to $25 million
Co-investments up to $200 million

Asset Classes

Office
Retail
Multi-Family Housing
Warehouse/Industrial
Student Housing
Self-Storage

Geographic Focus

Primary and secondary U.S. markets with emphasis on the south and southeastern U.S. SCG
typically targets properties located in cities where SCG or its partners have an existing market
presence (and such other new regions as determined by the Principals), and/or emphasizing
locations as characterized by favorable demographics (above average median income and
educational attainment, above average job and population growth, and natural and cultural
amenities, including strong school systems and other living amenities).

Targeted Returns

With respect to existing properties, SCG will seek to achieve net return on equity, by asset class, as follows:
Core Plus – 7%-9% current return on equity from cash flow and loan principal amortization, with
internal rates of return of 12%-14%.
Value Added – 9%-12% current return on equity from cash flow and loan principal amortization,
with internal rates of return of 14%-18%.
Opportunistic – Current return on equity will vary, with internal rates of return of 18%-22% (and
above).

Investment Hold Period

SCG develops an investment strategy or thesis for each targeted acquisition. Based on this analysis, a projected investment hold period is determined, typically ranging between three and ten years.