LIVING CITY RESIDENTIAL invests directly in multifamily and mixed-use properties in the Western United States, with a general emphasis on supply-constrained submarkets in the Seattle, Portland, San Francisco and Los Angeles metropolitan areas. By 2Q2017, we will allocate approximately $100 million to assets with meaningful in-place income that can be augmented through superior management, cost-effective capital improvements, and in some cases construction of new or additional residences while minimizing disruption to cash flow. Over the next five years, we expect the portfolio to generate annual returns in excess of 18 percent and equity multiples in excess of 2.2x. INVESTMENT THESIS. Demographic tailwinds favor rental housing and continued urbanization. We are drawn to urban and urban-light submarkets where imbalances between the numbers of jobs and housing units persist despite recent increases in multifamily supply. Within those submarkets, we strongly prefer locations that are highly walkable or transit-oriented. Further, we prefer assets that are authentic to the genius loci – the prevailing character of a place. In this regard, our residential offerings differ from the generic apartment communities that have become the hallmarks of institutional ownership. INVESTMENT CRITERIA. We only buy properties that can produce a minimum of five percent annual yield to equity, net of debt service, as of the date of acquisition. Whenever possible, we buy properties below their replacement-costs. And we only build new or additional units when the “development spread” on those units (i.e., the difference between the pro-forma cap rate for the project and the prevailing cap rate for similar assets in the submarket) is at least two percent. TERMS AND CONDITIONS. An investment in Living City is not subject to any fees – only the actual out-of-pocket expenses incurred in buying, repositioning, and eventually selling our properties. Investors will earn a preferred return of eight percent per annum, after which the Fund Manager will earn a 20 percent carried interest. At least six percent of the Investors’ annual pref will be paid-current in the form of quarterly distributions from our cash-flowing assets.