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June 17, 2011

Mr. Trent Johnson
Vice President
Concap Equities, Inc.
4582 S. Ulster St., Suite 1100
Denver, CO 80237


Re:		Tamarac Village Apartments 3300 South Tamarac Drive Denver, CO 80231

Dear Mr. Johnson:

In accordance with your request and our written agreement, Cogent Realty Advisors LLC (“Cogent”) has appraised the above referenced subject property (the “Property”). The purpose of this assignment is to estimate the market value of the fee simple interest of the Property as of May 31, 2011 and update the results of a prior appraisal of the Property that was completed by this firm. The effective date of value of the previously prepared appraisal was February 23, 2011 and its results were communicated in a Self-contained Appraisal Report dated March 16, 2011 (the “Prior Report”), a copy of which you retain on file.

This appraisal report addresses changes that have occurred subsequent to the date the Prior Report was prepared. The scope of this update appraisal assignment included the collection, confirmation and analysis of market and property specific data relevant to the appraisal of the Property. The appraisal process included a reexamination of the Property’s operating history and investment characteristics; investigation and evaluation of the market and competitive environment; consideration of investment criteria for and marketability of apartment properties; and utilization of appropriate appraisal methodology to conclude to a final estimate of market value.

The Property and its environs were last inspected by the appraiser in conjunction with the preparation of the Prior Report. The Property was not reinspected for purposes of this assignment and unless otherwise reported herein, it is specifically assumed that the physical condition of the Property and neighborhood conditions and composition have not changed materially since last inspected and are similar to that reported in the Prior Report.

The Income Capitalization and Sales Comparison Approaches were employed in the valuation of the Property. The Addenda attached to this letter contains an overview of the current market data considered in the appraisal and valuation process. Additional details and analyses not presented herein but utilized in satisfying the purpose of the appraisal may be available in the Prior Report.

The results of our appraisal are communicated in this Restricted Use Appraisal Report that provides an abbreviated level of detail and is intended to update, be utilized in conjunction with and incorporated by reference to the Prior Report. This letter is not intended to be utilized separate and apart from the Prior Report and may not be properly understood by parties other than for whom it was specifically prepared. The appraiser will not be responsible for unauthorized use of this report.

COGENT Realty Advisors, LLC
Commercial Real Estate Valuation, Consultation, Due Diligence
5307 E. Mockingbird Lane, Suite 1050, Dallas, Texas 75206
Tel: 214.363.3373 Fax: 214.635.2777



Mr. Trent Johnson		June 17, 2011
Concap Equities, Inc.		Page 2

Situated as noted above, the Property consists of a 25.16-acre site improved with a 564-unit garden-style apartment complex containing 411,129 square feet of rentable area. Additional site improvements include a clubhouse with fitness center, basketball court and racquetball court, three swimming pools with surrounding patio/deck areas, three tennis courts, a playground, sand volleyball court, asphalt-paved driveways and surface parking areas with some covered parking stalls, concrete walkways and mature landscaping. The complex, locally known as the Tamarac Village Apartments, is classified as a Class B apartment community by local market standards. The property, originally developed in 1977, is operating at stabilized occupancy and according to discussions with property management remains in average to good physical condition.

Based on the analysis of data considered, together with the attached Certification and Assumptions and Limiting Conditions, it is our opinion that the Market Value of the Fee Simple Estate of the Tamarac Village Apartments, as of May 31, 2011, is:

FORTY MILLION SIX HUNDRED THOUSAND DOLLARS
($40,600,000)

It has been a pleasure to be of service to you. Should you have any questions concerning our value estimate, or require further information please contact the undersigned.

Sincerely,

COGENT REALTY ADVISORS LLC


By:		Steven J. Goldberg, MAI, CCIM Managing Partner

ASSUMPTIONS AND LIMITING CONDITIONS

This appraisal report is subject to the following assumptions and limiting conditions:

1.		This is a Restricted Appraisal Report which is intended to comply with the reporting requirements set forth under Standards Rule 2-2 (C) of the Uniform Standards of Professional Appraisal Practice for a Restricted Report. As such, it presents little or no discussions of the data, reasoning, and analyses that were used in the appraisal process to develop the appraiser’s opinion of value. Supporting documentation concerning the data, reasoning, and analyses is retained in the appraiser’s file. The depth of discussion contained in this report is specific to the needs of the client and for their intended use. The appraisers are not responsible for unauthorized use of this report.

2.		No responsibility is assumed for the legal description provided or for matters pertaining to legal or title considerations. Title to the property is assumed to be good and marketable unless otherwise stated.

3.		The property is appraised free and clear of any or all liens or encumbrances unless otherwise stated.

4.		Responsible ownership and competent property management are assumed.

5.		The information furnished by others is believed to be reliable. However, no warranty is given for its accuracy.

6.		All engineering studies are assumed to be correct. The plot plans and illustrative material in this report are included only to help the reader visualize the property.

7.		It is assumed that there are no hidden or unapparent conditions of the property, subsoil, or structures that render it more or less valuable. No responsibility is assumed for such conditions or for obtaining the engineering studies that may be required to discover them.

8.		It is assumed that the property is in full compliance with all applicable federal, state, and local environmental regulations and laws unless the lack of compliance is stated, described, and considered in the appraisal report.

9.		It is assumed that the property conforms to all applicable zoning and use regulations and restrictions unless a nonconformity has been identified, described, and considered in the appraisal report.

10.		It is assumed that all required licenses, certificates of occupancy, consents, and other legislative or administrative authority from any local, state, or national government or private entity or organization have been or can be obtained or renewed for any use on which the value estimate contained in this report is based.

11.		It is assumed that the use of the land and improvements is within the boundaries or property lines of the property described and that there is no encroachment or trespass unless noted in the report.

12.		Unless otherwise stated in this report, the existence of hazardous substances, which may or may not be present on the property, was not observed by the appraiser. The appraiser has no knowledge of the existence of such materials on or in the property. The appraiser, however, is not qualified to detect such substances. The presence of substances such as asbestos, urea-formaldehyde foam insulation, and other potentially hazardous materials may affect the value of the property. The value estimated is predicated on the assumption that there is no such material on or in the property

COGENT Realty Advisors, LLC

ASSUMPTIONS AND LIMITING CONDITIONS (Continued)

		that would cause a loss in value. No responsibility is assumed for such conditions or for any expertise or engineering knowledge required to discover them.

13.		Any allocation of the total value estimated in this report between the land and the improvements applies only under the stated program of utilization. The separate values allocated to the land and buildings must not be used in conjunction with any other appraisal and are invalid if so used.

14.		Possession of this report, or a copy thereof, does not carry with it the right of publication.

15.		The appraiser, by reason of this appraisal, is not required to give further consultation, testimony, or be in attendance in court with reference to the property in question unless arrangements have been previously made.

16.		Neither all nor any part of the contents of this report (especially any conclusions as to value, the identity of the appraiser, or the firm with which the appraiser is connected) shall be disseminated to the public through advertising, public relations, news, sales, or other media without prior written consent and approval of the appraisers.

17.		The Americans with Disabilities Act (“ADA”) became effective January 26, 1992. The appraiser has not made a specific compliance survey and analysis of this property to determine whether or not it is in conformity with the various detailed requirements of the ADA. It is possible that a compliance survey of the property, together with a detailed analysis of the requirements of the ADA, could reveal that the property is not in compliance with one or more of the requirements of the Act. If so, this fact could have a negative effect upon the value of the property. Since the appraiser has no direct evidence relating to this issue, he did not consider possible non-compliance with the requirements of the ADA in estimating the value of the property.

18.		All values rendered within this report assume an exposure and marketing period of up to 12 months has occurred prior to the effective date of value.

SPECIAL CONDITION

The purpose of this assignment is to estimate the market value of the fee simple interest of the Tamarac Village Apartments (the “Property”) as of May 31, 2011 and update the results of a prior appraisal of the Property that was completed by this firm. The effective date of value of the previously prepared appraisal was February 23, 2011 and its results were communicated in a Self-contained Appraisal Report dated March 16, 2011 (the “Prior Report”). This Restricted Use Appraisal Report provides an abbreviated level of detail and is intended to update, be utilized in conjunction with and incorporated by reference to the Prior Report. This letter is not intended to be utilized separate and apart from the Prior Report and may not be properly understood by parties other than for whom it was specifically prepared.

EXTRAORDINARY ASSUMPTION

As agreed upon in advance with the client, a physical inspection of the Property and its environs was not conducted in conjunction with this update appraisal assignment. The Property and its environs were last inspected by the appraiser at the time the Prior Report was prepared. Unless otherwise reported herein, it is assumed for purposes of this report that the Property is in a similar state of repair and condition and neighborhood conditions and composition are consistent with observations noted at the time the Property and its environs were last inspected by the appraiser and reported in the Prior Report.

COGENT Realty Advisors, LLC

CERTIFICATION OF THE APPRAISER

I, Steven J. Goldberg, MAI, certify that to the best of my knowledge and belief:

•		The statements of fact contained in this report are true and correct.

•		The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and are my personal, unbiased professional analyses, opinions, and conclusions.

•		I have no present or prospective interest in the property that is the subject of this report, and have no personal interest or bias with respect to the parties involved.

•		I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment.

•		My engagement in this assignment was not contingent upon developing or reporting predetermined results.

•		My compensation for completing this assignment was not contingent upon the development or reporting predetermined value or direction in value that favors the cause of the client, the amount of value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal.

•		My analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice (USPAP) of the Appraisal Foundation and Code of Professional Ethics and the Standards of Professional Appraisal Practice of the Appraisal Institute.

•		No one other than the undersigned provided significant professional assistance to the person signing this report.

•		I have completed the requirements of the continuing education program of the Appraisal Institute

•		I have extensive experience in the appraisal of similar types of property.

•		The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representative.

•		As of the date of this report, Steven Goldberg, MAI is certified to conduct business in the State of Colorado as a General Real Estate Appraiser (Certification # CG100036063).

COGENT REALTY ADVISORS LLC


By:		Steven J. Goldberg, MAI, CCIM Managing Partner

COGENT Realty Advisors, LLC



Tamarac Village Apartments		June 17, 2011
Denver, Colorado		Addenda Page 1


	SUMMARY OF SALIENT FACTS AND CONCLUSIONS

*Property:*	Tamarac Village Apartments

*Address:*	3300 South Tamarac Drive Denver, CO 80231

*Location:*	The subject property is located along the east side of South Tamarac Road between East Eastman Avenue and East Girard Avenue. This places the subject in the southern portion of the Denver MSA in Central Colorado, approximately 9 miles south of the Denver Central Business District. Neighborhood conditions and composition are assumed to be similar to those reported in the Prior Report.

*Tax Identification Number:*	0633300097000, 0633300098000, and 0633300099000 (Denver County Property Assessor’s Office)

*Description:*	Land: The subject site consists of three continuous tax parcels that, according to public records, contain a total of 25.16± acres or 1,095,967 square feet. The land area is irregular in shape and consists of level to slightly rolling topography.

	Improvements: A 564-unit garden-style apartment complex built in 1977. The improvements consist of 16 three- and four-story garden-style residential buildings that contain a total rentable area of 411,129 square feet. Additional site improvements include a clubhouse with fitness center, basketball court and racquetball court, three swimming pools with surrounding patio/deck areas, three tennis courts, a playground, sand volleyball court, asphalt-paved driveways and surface parking areas with some covered parking stalls, concrete walkways and mature landscaping. The complex, locally known as the Tamarac Village Apartments, is classified as a Class B apartment community by local market standards.

	The property is operating at stabilized occupancy and when last inspected by the appraiser at the time the Prior Report was prepared, was observed to be in average to good condition. The current physical condition of the Property is assumed to be similar to that reported in the Prior Report.

*Interest Appraised:*	Fee Simple Estate

*Effective Date of Value:*	May 31, 2011

*Highest and Best Use:*	Continued use of the existing improvements

COGENT Realty Advisors, LLC



Tamarac Village Apartments		June 17, 2011
Denver, Colorado		Addenda Page 3

APARTMENT MARKET OVERVIEW

INTRODUCTION: The following apartment market analysis is designed to provide the reader an understanding of the national, regional and local apartment markets within which the subject property competes. The sources of data available to the appraisers were the Marcus & Millichap “Market 2011 Outlook — Denver Metro Area”, RED Capital Group “Market Overview — Denver, Colorado (1^st Quarter 2011), Hendricks and Partners “Apartment Update — Denver” (1^st Quarter 2011) and “PWC Real Estate Investor Survey First Quarter 2011” published by Price Waterhouse Coopers.

NATIONAL APARTMENT MARKET: Apartments staged a strong recovery in 2010 well ahead of expectations, despite modest job creation and stubbornly high unemployment. Net absorption surged, with occupied stock rising by nearly 200,000 units, double the number of apartments constructed and the highest level on record since 2000. Several factors contributed to high levels of absorption, including the release of pent-up renter demand as households de-bundled in the wake of the recession. In addition, apartments benefited from private-sector job growth in the critical 20- to 34-year-old cohort, expiration of the homebuyer tax credit, displaced foreclosed homeowners entering the renter pool, immigration and lower unit turnover. Renting also became a lifestyle and economic choice for many households as the effects of the housing collapse and recession persisted. Continued recovery in 2011 depends more heavily on improvements in the job market, which should gain momentum as the year progresses.

Most published reports indicate that fundamentals have bottomed in most markets and solid improvement is being seen in occupancies and demand. Published information from REIS indicates that as of the First Quarter 2011, national vacancies fell by 40 basis points, from 6.6 to 6.2 percent, as the sector posted positive net absorption of over 44,000 units. This is the largest increase in occupied stock in a first quarter period since 2000. United States apartment vacancy is anticipated to decrease to 5.8 percent by year-end 2011, matching the decline recorded in 2010. With vacancy in 2011 expected to align closely with pre-recession levels, owners will regain pricing power, particularly in tight core markets. At the national level, asking rents will rise 3.5 percent to $1,067 per month, while effective rates will increase 4.5 percent to $1,002 per month. Last year, asking and effective rents gained 1.5 percent and 2.3 percent, respectively.

Strong demand drivers and expectations for increased availability of debt this year, however, elevate the likelihood of a construction cycle ramping up in 2012. Apartment completions will total 53,000 units this year, 46 percent fewer than delivered in 2010. New supply will again fall critically short of demand, which is expected to reach 158,000 units.

The combination of available financing for apartment assets via Fannie Mae and Freddie Mac, an emerging interest in this sector by life insurance companies, and favorable long-term investor sentiment for well-located apartment assets is driving transaction velocity. Due to a high number of willing buyers and a shortage of quality assets, the apartment market is seeing fierce competition for quality assets. As a result, the average cap rate will decline in 2011 after slipping 20 basis points in 2010 to 7.2 percent, led by recompression of the most sought-after deals. Since peaking in 2009, cap rates for top-quality properties have fallen by as much as 100 basis points. Additional support for prices derives from historically light construction and emerging demographic shifts that favor rental housing. Economic growth and increases in apartment property values, particularly for high-quality assets, will relieve some pressure and lead to more sales and refinancing. Some level of distress at the local- and regional-bank level with high exposure to lower-quality assets and construction loans will persist into 2013.

COGENT Realty Advisors, LLC



Tamarac Village Apartments		June 17, 2011
Denver, Colorado		Addenda Page 4

APARTMENT MARKET OVERVIEW (Continued)

DENVER APARTMENT MARKET: Denver is one of the most actively pursued multifamily markets in the country and it is likely to gain more attention over the next several months. Investors favor Denver because of its economic growth potential being ideally situated at the intersection of three robust domestic industries: energy, high tech and health care. Furthermore, the area and lifestyle appeal to the “Gen Y” renter. With solid prospects for high-wage job creation and a steady inflow of young professionals seeking the kind of class-A, urban infill space favored by institutional investors, sales volume of properties in this top tier asset class is accelerating.

The Denver area economic recovery gained momentum in 1Q11, adding to total payrolls at a 10,000-job, 0.9% year-on-year pace, in line with the national average but lagging key high tech metro peers. This level of job growth merely pulled the metro area even with the national average as the Denver labor market was late to join the national recovery. First quarter hiring in the professional service, health care and energy sectors was constructive, accounting for creation of about 7,900 jobs expressed on a year-over-year basis. But housing remained a significant drag on the labor market overall, the source of 6,800-job cuts in construction and further weakness in the financial service sector.

By contrast, apartment demand was exemplary as tenants net leased 1,371 units in the seasonally soft first quarter. This absorption helped boost average occupancy 60 basis points sequentially to 94.2% and by 260 basis points year-over-year from the year ago level of 91.6%. Occupancy increased quarter-to-quarter in each submarket, with Arapahoe County areas posting the strongest gains ranging from 80 to 400 basis points. Average apartment rent growth reflected the pressure of the region’s high median home price cost for ownership, gaining 3.4% over the one-year period ending March 2011, rising from $880 to $910.

New apartment construction totaled 328 units in the first quarter 2011, down more than 700 new units for the same period one year prior. Multifamily permits for apartments and condos in excess of 5 units totaled 412 units in the first quarter, up from permits for 248 units one year prior. As a result of balance between supply and demand, Reis models foresee moderate occupancy and rent improvement over the 5-year forecast period. Occupancy is expected to hover around the 94% level while rents advance at a 3.9% compound annual rate, a bit slower than the 4.0% forecast national norm.

CONCLUSION: Occupancy levels are on a moderate upward trend that has resulted in firming rent rates, primarily in the form of a partial abatement of concessions. As there is balance between new supply and demand and employment growth is anticipated, occupancy should remain firm with moderate increases in rent levels through 2011 and into the foreseeable future. Investment sales transaction velocity and the value of properties traded were steady quarter-to-quarter. Stabile occupancy levels and prospects for rent growth will continue to encourage investors to target properties within the Denver area.

COGENT Realty Advisors, LLC



Tamarac Village Apartments		June 17, 2011
Denver, Colorado		Addenda Page 5

INCOME CAPITALIZATION APPROACH SUMMARY

INTRODUCTION: The Income Capitalization Approach is based on the theory that value is the present worth of future benefits. The future benefits of ownership consist of the present worth of the net income which will accrue to the owner of the property, plus the present worth of the net proceeds resulting from the eventual disposition of the property. The two most commonly used techniques of converting net income into value in the Income Capitalization Approach are Direct Capitalization and Discounted Cash Flow Analysis.

DIRECT CAPITALIZATION: We have utilized the Direct Capitalization method in the valuation of the subject property. Direct Capitalization is a method utilized to convert a single year’s estimate of net income (before debt service) into an indication of value by the use of an Overall Capitalization Rate. The basic steps in processing the Income Capitalization Approach by the Direct Capitalization method are:

(1)		Potential Gross Income that a competent owner could legally generate is calculated.

(2)		Vacancy and Credit Loss factor is estimated and deducted to arrive at Effective Gross Income.

(3)		Operating Expenses and Real Estate Taxes are estimated and deducted to arrive at the stabilized Net Operating Income.

(4)		Overall Capitalization Rate is developed.

(5)		Value is calculated by dividing the Net Operating Income by the Overall Capitalization Rate.

INCOME ANALYSIS: Review of rents charged by substitute and competitive properties in the influencing market area suggest that the Property’s quoted rent structure is within market parameters. Review of the Property’s current rent roll indicates that recent leases are being consummated at or near the quoted rents. The following chart illustrates the Property’s economic rent potential by floor plan as determined by an analysis of actual rents achieved at the Property and review of rents commanded by competitors in the area.

DERIVATION OF GROSS RENT POTENTIAL


Type	Mix		Size		Total Area		Rent		Rent/SF		Total Rent
Studio		20		450		9,000	$	569	$	1.26	$	11,380
1 Bedroom/1 Bath		50		530		26,500	$	600	$	1.13	$	30,000
1 Bedroom/1 Bath		118		560		66,080	$	618	$	1.10	$	72,924
1 Bedroom/1 Bath		43		660		28,380	$	654	$	0.99	$	28,122
2 Bedroom/1 Bath		111		700		77,700	$	692	$	0.99	$	76,812
2 Bedroom/1 Bath		75		740		55,500	$	694	$	0.94	$	52,050
2 Bedroom/1 Bath		11		900		9,900	$	834	$	0.93	$	9,174
2 Bedroom/2 Bath		15		950		14,250	$	852	$	0.90	$	12,780
2 Bedroom/2 Bath		24		1,016		24,384	$	862	$	0.85	$	20,688
2 Bedroom/2 Bath		64		1,020		65,280	$	862	$	0.85	$	55,168
2 Bedroom/2 Bath		33		1,035		34,155	$	881	$	0.85	$	29,073

Totals/Averages		564		729		411,129	$	706	$	0.97	$	398,171

According to historical operating statements, the Property’s occupancy has trended upward since 2008. As of the effective date of value, the Property was 97% occupied and it has operated at an average occupancy level in excess of 96% over the past year. The Property’s strong occupancy is attributed to its competitive position in the influencing market and good quality in comparison to substitute properties in the immediate area. Given the Property’s current occupancy level and

COGENT Realty Advisors, LLC



Tamarac Village Apartments		June 17, 2011
Denver, Colorado		Addenda Page 6

INCOME CAPITALIZATION APPROACH SUMMARY (Continued)

improvement noted in overall market conditions over the past year, a combined vacancy and collection loss allowance of 4% is projected for the appraised fiscal year.

In addition to rental income and vacancy described above, allowances for loss to lease, model, employee and administrative units, other income receipts and utility reimbursement income have been projected for the Property. These income allowances and have been projected by the appraiser based on an analysis of historical operations. The valuation pro forma presented on the following page outlines the Property’s income projections for the appraised fiscal year.

EXPENSE ANALYSIS: In order to forecast appropriate expenses for the Property, we have analyzed the Property’s operating expenses for the year ending periods of 2009 and 2010, the trailing 12-month period through April 2011 and the 2011 year-to-date operating history through April 2011. It is noted that the year-to-date 2011 operating information has been annualized for analytical purposes. In addition, we considered the Property’s 2011 operating budget and examined comparable expense data. The following table summarizes the Property’s historical operating statements that were made available for review.

RECONSTRUCTED OPERATING STATEMENTS


	2009						2010						T 12 (Thru 4/2011)						2011 YTD (Annualized)						Budget
	Actual			Per Unit			Actual			Per Unit			Actual			Per Unit			Annualized			Per Unit			Actual			Per Unit
INCOME
Gross Rent Potential (Market Rent)	$	4,330,722		$	7,679		$	4,347,171		$	7,708		$	4,559,089		$	8,083		$	4,756,416		$	8,433		$	4,229,744		$	7,500
Loss to Lease	$	466		$	1		$	(124,931	)	$	(222	)	$	(330,883	)	$	(587	)	$	(495,174	)	$	(878	)	$	0		$	0
Concessions	$	(97,533	)	$	(173	)	$	(80,486	)	$	(143	)	$	(48,071	)	$	(85	)	$	(27,888	)	$	(49	)	$	0		$	0
Vacancy/Credit/Non-revenue Units	$	(245,317	)	$	(435	)	$	(141,178	)	$	(250	)	$	(115,686	)	$	(205	)	$	(116,904	)	$	(207	)	$	(166,382	)	$	(295	)

Net Rental Income (NRI)	$	3,988,338		$	7,072		$	4,000,576		$	7,093		$	4,064,449		$	7,206		$	4,116,450		$	7,299		$	4,063,362		$	7,205
Utility Reimbursement	$	255,929		$	454		$	331,481		$	588		$	284,168		$	504		$	262,833		$	466		$	318,150		$	564
Other Income	$	294,419		$	522		$	359,289		$	637		$	378,953		$	672		$	398,454		$	706		$	363,802		$	645

Total Property Income (EGI)	$	4,538,686		$	8,047		$	4,691,346		$	8,318		$	4,727,570		$	8,382		$	4,777,737		$	8,471		$	4,745,314		$	8,414

EXPENSES
Payroll	$	667,553		$	1,184		$	609,276		$	1,080		$	578,737		$	1,026		$	559,932		$	993		$	587,976		$	1,043
Utilities	$	412,977		$	732		$	412,679		$	732		$	383,086		$	679		$	449,928		$	798		$	452,627		$	803
Maintenance & Repairs	$	442,592		$	785		$	411,901		$	730		$	403,338		$	715		$	368,115		$	653		$	421,984		$	748
Marketing	$	84,035		$	149		$	77,950		$	138		$	77,353		$	137		$	64,971		$	115		$	84,322		$	150
Administration/Office	$	159,083		$	282		$	187,126		$	332		$	176,360		$	313		$	164,901		$	292		$	238,251		$	422
Real Estate Taxes	$	203,005		$	360		$	169,240		$	300		$	129,940		$	230		$	200,481		$	355		$	184,569		$	327
Insurance	$	138,105		$	245		$	117,986		$	209		$	120,830		$	214		$	132,066		$	234		$	110,683		$	196
Management Fee	$	226,878		$	402		$	231,904		$	411		$	234,710		$	416		$	234,861		$	416		$	237,266		$	421
Reserves	$	11,159		$	20		$	27,431		$	49		$	13,694		$	24		$	19,320		$	34		$	12,000		$	21

TOTAL EXPENSES	$	2,345,387		$	4,158		$	2,245,493		$	3,981		$	2,118,048		$	3,755		$	2,194,575		$	3,891		$	2,329,678		$	4,131
																			$	0
NET OPERATING INCOME	$	2,193,299		$	3,889		$	2,445,853		$	4,337		$	2,609,522		$	4,627		$	2,583,162		$	4,580		$	2,415,636		$	4,283

COGENT Realty Advisors, LLC



Tamarac Village Apartments		June 17, 2011
Denver, Colorado		Addenda Page 7

INCOME CAPITALIZATION APPROACH SUMMARY (Continued)

VALUATION PROFORMA: The income and expenses estimated for the Property are summarized in the following chart.

VALUATION PRO FORMA


	Total			Per Unit			Percent
INCOME							% of GPI
Gross Rent Potential (Market Rent)	$	4,778,052		$	8,472			100.0	%
Loss to Lease	$	(406,134	)	$	(720	)		-8.5	%
Concessions	$	(35,835	)	$	(64	)		-0.8	%
Vacancy/Credit/Non-revenue Units	$	(191,122	)	$	(339	)		-4.0	%
Net Rental Income (NRI)	$	4,144,960		$	7,349			86.8	%
Utility Reimbursement	$	282,000		$	500			5.9	%
Other Income	$	380,700		$	675			8.0	%
Total Property Income (EGI)	$	4,807,660		$	8,524			100.6	%

EXPENSES							% of EGI
Payroll	$	592,200		$	1,050			12.3	%
Utilities	$	423,000		$	750			8.8	%
Maintenance & Repairs	$	408,900		$	725			8.5	%
Marketing	$	78,960		$	140			1.6	%
Administration/Office	$	183,300		$	325			3.8	%
Real Estate Taxes	$	146,340		$	259			3.0	%
Insurance	$	121,260		$	215			2.5	%
Management Fee	$	144,230		$	256			3.0	%
Reserves	$	169,200		$	300			3.5	%
TOTAL EXPENSES	$	2,267,390		$	4,020			47.2	%

NET OPERATING INCOME	$	2,540,270		$	4,504			52.8	%

CAPITALIZATION RATE ANALYSIS: This appraisal will consider the following techniques; (a) derivation from comparable sales and (b) investor surveys.

Derivation from Sales: The recent comparable sales utilized in the Sales Comparison Approach following this section indicate a range of overall capitalization rates of 6.0% to 6.8%. The capitalization rates from these sales are summarized in the following table.

SUMMARY OF MARKET-DERIVED CAPITALIZATION RATES


Property Name	Summit View Village			Broadstone at the Ranch			Stone Creek Apartments			Apple Creek			Hampden Heights
Date of Sale	1/12/2011			11/8/2010			12/7/2010			12/22/2010			Contract Pending
Year Built		1974			1984			1985			1987			1974
Cap Rate		6.0	%		6.3	%		6.7	%		6.8	%		6.5	%

Each of the sale properties are considered generally similar to the Property in terms of location and physical characteristics. Of the properties illustrated above, Hampden Heights is considered most similar to the subject property in terms of physical characteristics and location. It is also the most recent indicator of an applicable capitalization rate as it represents a pending sale. Review of recent sales data indicates that there has been no material change in capitalization rates between the date the Prior Report was prepared and the present. Based on recent sales data, a market-derived capitalization rate in the range of approximately 6.0% to 6.5% is considered reasonable for the Property.

Investor Surveys: According to the PricewaterhouseCoopers Korpacz Real Estate Investor Survey, 1^st Quarter 2011 rates for apartments reported by survey participants active in the market presently range as shown.

COGENT Realty Advisors, LLC



Tamarac Village Apartments		June 17, 2011
Denver, Colorado		Addenda Page 8

INCOME CAPITALIZATION APPROACH SUMMARY (Continued)

NATIONAL APARTMENT MARKET SURVEY


Internal Rate of Return	5.25% - 14.00% 8.78%	Range Average
Overall Capitalization Rate	4.00% - 10.00% 6.29%	Range Average
Terminal Capitalization Rate	4.75% -9.75% 6.76%	Range Average

Source: Korpacz Real Estate Investor Survey, 1^st Quarter 2011

As indicated below, overall rates began increasing in the Third Quarter 2008 and continued to increase through the Fourth Quarter 2009. As the effects of the economic recession began to moderate at the beginning of 2010, rates began to fall. As market conditions continued to improve throughout 2010, capitalization rates continued to contract. Beginning in approximately the 4^th quarter 2010, the decline in capitalization rates began to moderate. As indicated below, the most recent survey data available indicates that there has only been a 22 basis point decline in average capitalization rates between the time the Prior Report was prepared and the present. The 1^st quarter 2011 average capitalization rate is approaching the lows realized prior to the economic recession

OVERALL CAPITALIZATION RATE TRENDS


Quarter	Average			Basis Point Change
1Q11		6.29	%		-22
4Q10		6.51	%		-61
3Q10		7.12	%		-56
2Q10		7.68	%		-17
1Q10		7.85	%		-18
4Q09		8.03	%		19
3Q09		7.84	%		35
2Q09		7.49	%		61
1Q09		6.88	%		75
4Q08		6.13	%		27
3Q08		5.86	%		11
2Q08		5.75	%		-4
1Q08		5.79	%		4

Source: Korpacz Real Estate Investor Survey

Conclusion of OAR: An OAR in the range of approximately 6.0% to 6.5% was suggested from a review of actual sales data. Investor surveys indicate that capitalization rates in the National Apartment Market are beginning to stabilize after retreating back down from the highs realized during the economic recession and currently average approximately 6.29%. In consideration of the preceding data, with primary emphasis placed on the rates extracted from sales data in the local market, a rate of approximately 6.25% is suggested and concluded for the subject property.

VALUATION: Value is derived by capitalizing the net operating income estimate by an appropriate overall or capitalization rate. Market data suggests that an appropriate capitalization rate is approximately 6.25%. The net operating income calculated above is capitalized into a market value indication as follows:


Net Operating Income		Capitalization Rate		Indicated Value
$2,540,270	÷	6.25%	=	$40,644,320

CONCLUSION: The Market Value of the Fee Simple Interest of the Property, as of May 31, 2011, by application of the Income Capitalization Approach, is rounded to:

FORTY MILLION SIX HUNDRED THOUSAND DOLLARS
($40,600,000)

COGENT Realty Advisors, LLC



Tamarac Village Apartments		June 17, 2011
Denver, Colorado		Addenda Page 9

SALES COMPARISON APPROACH SUMMARY

INTRODUCTION: The Sales Comparison Approach to value is the process of comparing recent sales of competitive properties. The estimated value derived via this approach represents the probable price at which a willing seller would sell the subject property to a willing buyer as of the date of value.

To estimate the property value by the Sales Comparison Approach, sales of similar properties have been examined and analyzed. The price per dwelling unit has been relied upon as the unit of comparison in this approach. The comparative process involves judgment as to the similarity between the subject property and the comparable sale property with regard to a variety of factors affecting value such as financing terms, market conditions that prevailed at the time of sale, conditions of sale, location, and physical characteristics of the property such as size, age and condition of the structure, and functional utility.

PRESENTATION OF SALES DATA: Research conducted in the local market indicates that sales activity continues to occur and there is adequate investor interest in good quality, well located assets that are being marketed for sale. Sufficient sales data was available to formulate a defensible value for the Property via comparative analysis. Numerous sales of apartments in the Denver metropolitan area have occurred subsequent to the date the Prior Report was prepared. It is noted however that few sales of truly comparable properties have occurred subsequent to the date the Prior Report was prepared. Many of the noted sales transacting subsequent to the date of the Prior Report consist of either much newer Class A product or significantly inferior properties.

In addition to the sales presented in the Prior Report, a pending sale of a very comparable property (Hampden Heights) has been included herein for analytical purposes. The data summarized in the table below is utilized as the basis in which to estimate the market of the subject property via the Sales Comparison Approach.

SUMMARY OF APARTMENT SALES


	1	2	3	4	5
Name	Summit View Village	Broadstone at the Ranch	Stone Creek Apartments	Apple Creek	Hampden Heights
Location	17600 West 14th Street	2890 West 116th Place	1225 West Prospect	9750 West 59th Avenue	8405 E Hampden Avenue
	Golden, CO 80401	Westminster, CO 80234	Fort Collins, CO 80526	Arvada, CO 80004	Denver, CO 80231
Grantor	Skyline Property	Foothills Apartments LP	Stone Creek Apartments LLC	Foothills Apartments LP	AIMCO
Grantee	Summit View Property Management	Pc Foothills LLC	Landmark	PC Foothill LLX	N/A
Sales Price	$23,260,000	$21,750,000	$12,950,000	$15,030,000	$22,750,000
Sale Date	1/12/2011	11/8/2010	12/7/2010	12/22/2010	Contract Pending
Year Built	1974	1984	1985	1987	1974
No. of Units	285	256	167	219	376
Net Rentable Area (SF)	260,190	236,864	201,012	145,556	233,400
Avg. Unit Size (SF)	913	925	1,204	665	621
Occuapncy	94%	95%	95%	97%	98%
Price/SF	$89.40	$91.82	$64.42	$103.26	$97.47
Price/Unit	$81,614	$84,961	$77,545	$68,630	$60,505
Net Income	$1,395,600	$1,370,250	$867,650	$1,022,040	$1,479,914
NOI/SF	$5.36	$5.78	$4.32	$7.02	$6.34
NOI/Unit	$4,897	$5,353	$5,196	$4,667	$3,936
Cap Rate (OAR)	6.0%	6.3%	6.7%	6.8%	6.5%
EGIM	8.7	8.0	6.6	8.4	7.7
Expense Ratio (OER)	52%	36%	55%	52%	50%

COGENT Realty Advisors, LLC



Tamarac Village Apartments		June 17, 2011
Denver, Colorado		Addenda Page 10

SALES COMPARISON APPROACH SUMMARY (Continued)

ANALYSIS OF SALES: We have researched and analyzed a number of suburban apartment transactions which have been selected as being comparable to the subject. The transactions summarized above were analyzed and subsequently adjusted for conditions of sale, market conditions (time), physical features, location, and condition. The following chart summarizes the adjustments considered pertinent in the sales comparison analysis of the Property.

SUMMARY OF ADJUSTMENTS


	1			2			3			4			5
Name	Summit View Village			Broadstone at the Ranch			Stone Creek Apartments			Apple Creek			Hampden Heights
Address	17600 West 14th Street			2890 West 116th Place			1225 West Prospect			9750 West 59th Avenue			8405 E Hampden Avenue
	Golden, CO 80401			Westminster, CO 80234			Fort Collins, CO 80526			Arvada, CO 80004			Denver, CO 80231
Sale Date		1/12/2011			11/8/2010			12/7/2010			12/22/2010			Contract Pending

Price per Unit	$	81,614		$	84,961		$	77,545		$	68,630		$	60,505

ADJUSTMENTS
Financing Adjustment	$	0		$	0		$	0		$	0		$	0
Adjusted for Financing per Unit	$	81,614		$	84,961		$	77,545		$	68,630		$	60,505
Conditions of Sale Adjustment	$	0		$	0		$	0		$	0		$	0
Adjusted for Special Conditions	$	81,614		$	84,961		$	77,545		$	68,630		$	60,505
Time		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
Time Adjusted Price per Unit	$	81,614		$	84,961		$	77,545		$	68,630		$	60,505

Location		5	%		5%			10	%		5	%		0	%
Age/Condition/Quality		0	%		-5%			0	%		-10	%		0	%
Average Unit Size		-15	%		-15%			-25	%		5	%		5	%
Amenities		0	%		0%			0	%		0	%		0	%
Economics		0	%		0%			0	%		0	%		0	%
Total Adjustments (%)		-10	%		-15%			-15	%		0	%		5	%

Adjusted Price per Unit	$	73,453		$	72,217		$	65,913		$	68,630		$	63,531

Prior to adjustments, the comparable sales range in price from approximately $60,505 to $84,961 per unit. After considering applicable adjustments, the sales prices fall within a narrower range of $63,531 to $73,453 per unit.

Based on the data considered and implementation of applicable adjustments, a value of approximately $70,000 per unit is suggested. The resulting overall property value indication is $39,500,000 (rounded), calculated as follows:


Size (Units)		Unit Price (per Dwelling Unit)		Indicated Market Value

564	x	$70,000	=	$39,480,000

CONCLUSION: The Market Value of the Fee Simple Interest in the Property as of May 31, 2011, by application of the Sales Comparison Approach, is:

THIRTY-NINE MILLION FIVE HUNDRED THOUSAND DOLLARS
($39,500,000)

COGENT Realty Advisors, LLC



Tamarac Village Apartments		June 17, 2011
Denver, Colorado		Addenda Page 11

RECONCILIATION AND FINAL VALUE CONCLUSION

REVIEW: The purpose of this appraisal is to provide an estimate of Market Value of the Tamarac Village Apartments. The indicated Market Value estimates for the real property interest appraised are:


The Income Capitalization Approach	$	40,600,000
The Sales Comparison Approach	$	39,500,000
The Cost Approach	Not Applicable

INCOME CAPITALIZATION APPROACH: The Income Capitalization Approach seeks to view the subject property’s value from the perspective of the typical investor. This approach reflects the relationship between the income a property is capable of generating and its value in the marketplace. Typical investors judge the value of a property based upon the quality and quantity of the income generated, as well as the likely impact of market conditions on future income generation. The Income Capitalization Approach, by considering these factors provides a highly meaningful measure of credibility for this property type.

SALES COMPARISON APPROACH: In the Sales Comparison Approach, sales of similar apartment buildings were compared to the subject property based on their location, physical and investment characteristics. The Sales Comparison Approach is utilized as a means of support to the value conclusion rendered for the Property via the Income Capitalization Approach.

COST APPROACH: The Cost Approach value estimate relies on the cost to produce a like structure. Due to the age of the improvements, they have incurred physical deterioration due to normal wear and usage. Given the inherent inaccuracies and subjectivity involved in estimating substantial degrees of physical deterioration, the cost approach is not considered a reliable, independent approach to value in this instance and has been excluded from analysis.

MARKET VALUE CONCLUSION: With primary emphasis placed on the value indicator produced by the Income Capitalization Approach, we are of the opinion that the Market Value of the Fee Simple Interest of the Tamarac Village Apartments, free and clear of financing, as of May 31, 2011 is:

FORTY MILLION SIX HUNDRED THOUSAND DOLLARS
($40,600,000)

The value estimate rendered assumes that an exposure and marketing period of up to 6 to 9 months has occurred.

COGENT Realty Advisors, LLC



Tamarac Village Apartments		June 17, 2011
Denver, Colorado		Addenda Page 12

QUALIFICATIONS OF THE APPRAISER
STEVEN J. GOLDBERG, MAI, CCIM

STEVEN J. GOLDBERG is the Managing Partner of Cogent Realty Advisors LLC, a firm specializing in commercial real estate valuation, consultation and due diligence. His responsibilities include staff supervision, appraisal management, maintaining product quality, marketing and client development.

Mr. Goldberg has over 25 years of nationwide experience in real estate valuation, investment analysis and evaluation consultation. He has performed appraisals throughout the United States and has extensive experience in most markets situated in the Southwest and Southeast regions of the country. Mr. Goldberg’s particular area of expertise is in the appraisal and analysis of multifamily apartment projects. In addition to his expertise in the multifamily market, Mr. Goldberg has extensive experience in the appraisal of other income-producing properties including office buildings, retail properties, lodging facilities, industrial properties and mixed-use projects.

Immediately prior to forming Cogent Realty Advisors, Mr. Goldberg was an Executive Vice President of a national valuation and consulting firm and managed the Southwest regional office. Mr. Goldberg has performed marketability, consultation and feasibility reports, has served as an expert witness and has testified in various state and federal courts. These activities have been performed on behalf of real estate investors, life insurance companies, pension funds, investment banking firms, foreign and domestic financial institutions, mortgage bankers, conduit lenders, real estate advisors, law firms and governmental agencies.

Mr. Goldberg received his Bachelor of Business Administration Degree from the University of Texas in Austin, with major concentrations in both Finance and Real Estate/Urban Land Economics. He is a designated member of the Appraisal Institute and the Commercial Investment Real Estate Institute having been awarded the MAI designation in 1989 and the CCIM designation in 1994. He has attended numerous continuing education courses and has completed the requirements under the continuing education program of the Appraisal Institute.

Mr. Goldberg is state certified as a General Real Estate Appraiser in Texas, Arizona, Georgia, Florida, Colorado and Minnesota. He is also a licensed Real Estate Broker in the State of Texas. He is affiliated with the North Texas Commercial Association of Realtors, International Council of Shopping Centers and Mortgage Bankers Association.

COGENT Realty Advisors, LLC


	Current (5/31/2011)			Prior Report (2/23/2010)
*Income Capitalization*	$	40,600,000		$	39,600,000
*Stabilized NOI*	$	2,540,270		$	2,475,227
*Cap Rate*		6.25	%		6.25	%
*Value per Unit*	$	71,986		$	70,213
*Value per Sq Ft*	$	98.75		$	96.32

*Sales Comparison*	$	39,500,000		$	39,500,000
*Value per Unit*	$	70,000		$	70,000
*Value per Sq Ft*	$	96.08		$	96.08

*CONCLUDED VALUE*	$	40,600,000		$	39,600,000