The 22 - Q3 2022

On behalf of AHM Group, we are excited to provide a Q3 2022 update on the progress made in executing our business plan at The 22.

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2200 Locust

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Rental Update

• We continue to sign new leases at a weighted average greater than the original proforma rents we projected at the time of acquisition.

• We expect to continue to increase rents now that the first-generation post-renovation leases are expiring. Now that our efforts have succeeded in leasing the property to 100% occupancy, we currently have a demand/supply imbalance that will continue to drive rents higher as the MLS stadium opens and Saint Louis City SC begins playing in March 2023. Due to this demand, as well as demand driven by the Property’s ideal location proximate to many major employers, we anticipate renewals and new leases executed at higher rates.

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Amenity Upgrades

• We have completed building-wide cable and internet upgrades and are onboarding existing residents to the bulk cable/internet program. This is a win/win for the partnership and tenants as tenants have enterprise-grade Wi-Fi (internet speeds ranging between 300 to 400mbps versus a max of 100mbps prior to the infrastructure improvements) and the partnership earns additional monthly income per unit. This new service is now available to building residents in the common areas and rooftop deck, which will be helpful in ongoing unit leasing as this is a nice amenity that is rare in the market.

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2206 Locust

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Rental Update

• We’ve increased asking rents at 2206 Locust by over the original underwriting and also were able to add a 13th unit (the original plans called for 12 units), which will result in a higher property value and cashflow.

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Construction Progress

• As drywall taping in and painting is completed, we are excited to see so much natural light brightening the spaces due to the lightwells and large industrial windows that have been added to the side of the building. This is the most unique building we have built/redeveloped to date and we’re ecstatic at how it’s turning out.

• Second floor units are all drywalled and taped and painting commenced last week (two units are completely painted).

• Locust Street facing apartment and storefront windows are all complete.

• First floor dry wall and taping is progressing well, and corridor and tenant spaces are all boarded.

• We remain on target to begin full-scale lease up and marketing and, as mentioned above, have commenced pre-leasing hardhat tours to prospective residents.

• AHM Management has commenced hardhat tours to prospective renters for pre-leasing. While we are still finishing the interior work, we have received overwhelmingly positive feedback, and anticipate a steady lease-up of the 2206 Locust portion of The 22 (13 additional units).

• We have agreed to terms and executed a Letter of Intent (LOI) for the commercial/retail bay with a local soccer themed bar and restaurant concept, Amsterdam Tavern. Amsterdam Tavern the most attended local soccer bar in the St. Louis Metro Area and has been steadily growing their base of patrons over the past decade in a primarily residential neighborhood that does not have the benefit of 22,500 excited MLS fans just a block away. The owners of Amsterdam Tavern presently have a location across the street from our MoFo Urban Residences property in Tower Grove South, and we are excited to have them in The 22. Over the past five years, we have built an ongoing symbiotic relationship with the owners at our existing location (we have lots of residents who frequent their business), and this venture would be an expansion of their business to a second, flagship, bar named Amsterdam Centraal (named after the Amsterdam Centraal train station).