exv99w1

June 8, 2011

Mr. Trent Johnson
Vice President
NPI Equity Investments, Inc.
4582 South Ulster Street, Suite 1100
Denver, CO 80237


Re:		Appraisal of Village of Pennbrook Apartments 9071 Mill Creek Road Levittown, PA 19054 KTR No. 11-1-00131

Dear Mr. Johnson:

KTR Real Estate Advisors LLC (“KTR”) has completed a self contained appraisal of the above referenced property as requested in our May 18, 2011 engagement letter. The purpose of this assignment is to estimate the Market Value of the Leased Fee Interest in the subject property as of June 1, 2011. The property was inspected by a staff member of KTR on March 9, 2011, when the property was last appraised by KTR. The report has been prepared for NPI Equity Investments, Inc. for client’s use in asset valuation and financial reporting purposes.

Situated as noted above, the subject property consists of a 64.057 acre site improved with a 722-unit, garden-style apartment complex. The subject was developed in 1969 and contains 660,220 square feet of rentable area. The property is operating at stabilized occupancy and is in good physical condition. The subject property is more fully described, legally and physically, within the attached report.

Based on the analysis contained in the attached report, the Market Value of the Leased Fee Interest in the subject property, as of June 1, 2011 is:

SIXTY SIX MILLION DOLLARS
($66,000,000)

EXTRAORDINARY ASSUMPTION

KTR previously inspected the subject property on March 9, 2011. The scope of work of this appraisal did not include a physical inspection of the subject property. The values derived herein are based on the extraordinary assumption that the physical condition of the subject property has not materially changed since the date of our last inspection. Should this assumption be incorrect, the values reported herein may be materially impacted.

The attached report, in its entirety, including all assumptions and limiting conditions, which is an integral part of, and inseparable from, this transmittal letter, contains the data, information, analyses and calculations upon which the value conclusion indicated herein are based. The report was prepared in compliance with the Uniform Standards of Professional Appraisal Practice (USPAP) as set forth by the Appraisal Foundation and in accordance with the Code of Professional Ethics and Standards of Professional Practice of the Appraisal Institute.

575 Lexington Avenue, New York, NY 10022

Tel 212.906.9400 • Fax 212.935.5935



Village of Pennbrook Apartments		June 8, 2011
Levittown, PA		Page ii

CERTIFICATE OF APPRAISAL

We, Terence Tener, MAI, ASA, Meng Chen, MAI and Shaun Kest certify that to the best of our 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 our personal, unbiased professional analyses, opinions, and conclusions.

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

Our compensation is not contingent upon the reporting of a predetermined value or direction in value that favors the cause of the client, the value estimate, the attainment of a stipulated result, or the occurrence of a subsequent event.

Our analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice.

Meng Chen has made a personal inspection of the property that is the subject of this report.

Terence Tener, MAI, ASA and Shaun Kest have not made a personal inspection of the property that is the subject of this report.

This appraisal was not prepared in conjunction with a request for a specific value or a value within a given range or predicated upon loan approval.

The reported analyses, opinions and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the Appraisal Institute.

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

As of the date of this report, Terence Tener, MAI, ASA and Meng Chen, MAI has completed the continuing education program of the Appraisal Institute.

Meng Chen, MAI, has been temporarily licensed in the State of Pennsylvania, License Number #002684.

Terence Tener, MAI, ASA, Meng Chen, MAI and Shaun Kest have extensive experience in the appraisal of similar properties.

We have appraised or provided any other services relative to the subject property in the past three years.

KTR REAL ESTATE ADVISORS LLC



By:	Terence Tener, MAI, ASA	By:	Meng Chen, MAI	By:	Shaun Kest
	Managing Partner		Appraiser		Appraiser

KTR Real Estate Advisors, LLC



Village of Pennbrook Apartments		June 8, 2011
Levittown, PA		Page iii

BASIC ASSUMPTIONS AND LIMITING CONDITIONS

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

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

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

3.		Responsible ownership and competent property management are assumed.

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

5.		All engineering is assumed to be correct. The plot plans and illustrative material in this report are included only to assist the reader in visualizing the property.

6.		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 arranging for engineering studies that may be required to discover them.

7.		It is assumed that there is full compliance with all applicable federal, state, and local environmental regulations and laws unless noncompliance is stated, defined, and considered in the appraisal report.

8.		It is assumed that all applicable zoning and use regulations and restrictions have been complied with, unless nonconformity has been stated, defined, and considered in the appraisal report.

9.		It is assumed that all required licenses, certificates of occupancy, consents, or 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.

10.		It is assumed that the utilization 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.

11.		The distribution, if any, of the total valuation in this report between land and improvements applies only under the stated program of utilization. The separate allocations for land and buildings must not be used in conjunction with any other appraisal and are invalid if so used.

12.		Unless otherwise stated, possession of this report, or a copy thereof, does not carry with it the right of publication.

13.		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.

14.		Unless otherwise stated, 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.

KTR Real Estate Advisors, LLC



Village of Pennbrook Apartments		June 8, 2011
Levittown, PA		Page iv

15.		Unless otherwise stated in this report, the existence of hazardous substances, including without limitation asbestos, polychlorinated biphenyls, petroleum leakage, or agricultural chemicals, which may or may not be present on the property, or other environmental conditions, were not called to the attention of nor did the appraiser become aware of such during the appraiser’s inspection. The appraiser has no knowledge of the existence of such materials on or in the property unless otherwise stated. The appraiser, however, is not qualified to test such substances or conditions. If the presence of such substances, such as asbestos, urea formaldehyde foam insulation, or other hazardous substances or environmental conditions, may affect the value of the property, the value is predicated on the assumption that there is no such condition on or in the property or in such proximity thereto that it would cause a loss in value. No responsibility is assumed for any such conditions, or for any expertise or engineering knowledge required to discover them. The client is urged to retain an expert in this field, if desired.

16.		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.

17.		Former personal property items such as kitchen and bathroom appliances are now either permanently affixed to the real estate or are implicitly part of the real estate in that tenants expect the use of such items in exchange for rent and never gain any of the rights of ownership. Furthermore, the intention of the owners is not to remove the articles which are required under the implied or express Warranty of Habitability. The accounting for the short-lived nature of such items is reflected in reserves for replacement expense category.

EXTRAORDINARY ASSUMPTION

KTR Real Estate Advisors, LLC



Village of Pennbrook Apartments		June 8, 2011
Levittown, PA		Page 1


		SUMMARY OF SALIENT FACTS AND CONCLUSIONS

*Date of Value*		June 1, 2011

*Date of Inspection*		March 9, 2011

*Property Name*		Village of Pennbrook Apartments

*Property Address*		9071 Mill Creek Road
		Levittown, PA 19054

*Property Location*		Southeast corner of Mill Creek Road and US-13, in Levittown, PA.

*Tax Identification*		13-040-005

*Purpose of the Appraisal*		To estimate the Market Value of the Leased Fee Interest in the subject property, free and clear of financing.

*Site Size*		Irregular shaped site that contains a total of 64.057 acres

*Zoning*		HR — High Density Residential

*Improvements*		A 722-unit garden apartment complex completed in 1969 with 32 buildings. The property is 95.8% occupied and is in average physical condition.

*2011 Assessed Value*		$4,320,000

Highest and Best Use
*As If Vacant*		Residential development.
*As Improved*		Continued use of the existing improvements.

*VALUATION INDICATIONS*


Income Capitalization	$	66,100,000
*Stabilized NOI*	$	4,954,295
*Cap Rate*		7.5	%
*Value per Unit*	$	91,551
*Value per Sq Ft*	$	100.12

Sales Comparison	$	65,700,000
*Value per Unit*	$	90,997
*Value per Sq Ft*	$	99.51

Cost Approach		N/A

APPRAISED VALUE	$	66,000,000
*Value per Unit*	$	91,413
*Value per Sq Ft*	$	99.97

EXTRAORDINARY ASSUMPTION

KTR Real Estate Advisors, LLC



Village of Pennbrook Apartments		June 8, 2011
Levittown, PA		Page 2


PREMISES OF THE APPRAISAL

*Identification*		The subject property consists of the land and improvements at 9071 Mill Creek Road within Levittown, Bucks County, Pennsylvania. The Bucks County Assessor identifies the property as Tax Parcel 13-040-005. The property consists of a 64.057-acre site improved with a 722-unit garden apartment complex known as Village of Pennbrook Apartments.

*Sales History of the Subject Property*		According to public records, the current owner of the subject property is National Prop Invest 4, who has owned the property since December 1981. We are not aware of any transfers of ownership within the three-year period prior to the effective date of value. It is our understanding that the subject property is not being listed for sale and we are not aware of any contracts of sale pending as of the date this report was prepared.

*Purpose and Scope of the Appraisal*		The purpose of the appraisal is to estimate the market value of the subject property as of the date of value. It is the intent of the appraisers that the analysis, opinions and conclusions of this report be considered an unbiased, objective investigation performed by a disinterested third party with complete objectivity as to the outcome of the analysis. According to the Appraisal Institute’s Code of Professional Ethics and Uniform Standards of Professional Appraisal Practice, the scope of the appraisal is cited as “the extent of the process of collecting, confirming, and reporting data” included in an appraisal report. All appropriate data deemed pertinent to the solution of the appraisal problem has been collected and confirmed. In our appraisal of the subject property, we have:

	1.		Inspected the subject property and its environs.

	2.		Reviewed demographic and other socioeconomic trends pertaining to the city and region.

	3.		Examined regional apartment market conditions, with special emphasis on the subject property’s apartment submarket.

	4.		Investigated lease and sale transactions involving comparable properties in the influencing market.

	5.		Reviewed the existing rent roll and discussed the leasing status with the building manager and leasing agent. In addition, we have reviewed the subject property’s recent operating history and those of competing properties.

	6.		Utilized appropriate appraisal methodology to derive estimates of value.

	7.		Reconciled the estimates of value into a single value conclusion.

KTR Real Estate Advisors, LLC



Village of Pennbrook Apartments		June 8, 2011
Levittown, PA		Page 3


*Definition of Market Value*		The definition of Market Value used in this appraisal report is taken from the Appraisal Institute’s The Dictionary of Real Estate Appraisal, Fifth Edition, Chicago, Illinois, Appraisal Institute, 2010, which states:

		“The most probable price that a property should bring in a competitive and open market under all conditions requisite to a fair sales, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby:

	1.		Buyer and seller are typically motivated;

	2.		Both parties are well informed or well advised, and acting in what they consider their best interests;

	3.		A reasonable time is allowed for exposure in the open market;

	4.		Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and

	5.		The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.”


*Property Rights Appraised*		The interest being appraised is the Leased Fee Interest. Leased Fee Interest is defined in The Dictionary of Real Estate Appraisal, Fifth Edition, Chicago, Illinois, Appraisal Institute, 2010, as:

		An ownership interest where the possessory interest has been granted to another party by creation of a contractual landlord tenant relationship, i.e. a lease. The rights of the lessor (the leased fee owner) and the leased fee are specified by contract terms contained within the lease.

*Intended Use and Intended User*		The intended user of this report is NPI Equity Investments, Inc. It is understood that this appraisal will be utilized by the intended user as an aid in asset evaluation and financial reporting. All others reading or relying on this appraisal report are considered unintended users. The appraisal cannot be used for any other reason than that stated above. Should anyone other than the client read or rely on this report, no fiduciary obligation is owed by the appraisers to that party. The appraisers are not responsible for unauthorized use of this report.

		This appraisal has been prepared in compliance with the Uniform Standards of Professional Appraisal Practice (USPAP) as promulgated by the Appraisal Standards Board of the Appraisal Foundation as well as the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. The presentation of data and results of our analysis are presented in a Self-contained Report format as set forth under Standards Rule 2-2 of the USPAP.

KTR Real Estate Advisors, LLC



Village of Pennbrook Apartments		June 8, 2011
Levittown, PA		Page 4


*Exposure Time*		According to the previously stated definition of Market Value, the property must be allowed a reasonable time to be exposed in the open market to achieve the appraised value. Exposure is defined by the Appraisal Institute, The Dictionary of Real Estate Appraisal, Fifth Edition, Chicago, Illinois, Appraisal Institute, 2010, as:

		“1. The time a property remains on the market.

		2. The estimated length of time the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal; a retrospective estimate based upon an analysis of past events assuming a competitive and open market.”

		Exposure time is always presumed to occur prior to the effective date of the appraisal. The overall concept of reasonable exposure encompasses not only adequate, sufficient and reasonable time but also adequate, sufficient and reasonable effort. Exposure time is different for various types of real estate and value ranges and under various market conditions.

		Review of transfer records suggests that there is an active investor market for good quality apartment properties; however, conventional sources of capital is somewhat limited and mortgage underwriting has remained conservative with a greater level of equity required to obtain financing in comparison to the period leading up to September 2008. These factors have impacted sales activity for most types of investment grade real estate.

		We believe that if the subject property were exposed to the market for a reasonable period of time prior to the effective date of this appraisal, which we consider to be a period of up to 12 months, the subject property would transfer at an appropriate price, that is to say, the appraised value. Support for this exposure period is provided by the PwC Real Estate Investor Survey First Quarter 2011, which indicates that marketing times for apartment properties in the national market range from none to 18 months. The average marketing time equates to 6.00 months, down from 8.06 months reported one year ago. This marketing period is supported by data in the local market.

		We acknowledge that in appraising the property to sell after the aforementioned exposure period, we must place most emphasis on the buyer’s expectations and yield requirements. The value conclusion rendered for the property through implementation of the Income Capitalization Approach has been accorded most significance as this technique most closely emulates buyer’s expectations and yield requirements. The market value estimate concluded herein assumes an exposure and marketing period of up to 12 months has occurred.

KTR Real Estate Advisors, LLC



Village of Pennbrook Apartments		June 8, 2011
Levittown, PA		Page 5


REGIONAL ANALYSIS

*Overview*		The subject is located in the City of Fairless Hills, Bucks County, Pennsylvania, part of the Philadelphia-Camden-Wilmington, PA-NJ-DE-MD Metro Core Based Statistical Area (Philadelphia-Camden- Wilmington MSA). The Philadelphia-Camden-Wilmington CBSA is comprised of eleven counties including: New Castle in Delaware, Cecil in Maryland Burlington, Camden, Gloucester, Salem, Bucks, Chester, Delaware, Montgomery and Philadelphia in New Jersey; and five cities including, Newark, Wilmington, Camden, Chester and Philadelphia. The metropolitan area is part of the Delaware Valley, which extends north to Trenton, New Jersey and south to Wilmington, Delaware. The region contains the nation’s sixth largest city, Philadelphia, with a population of just over 1.5 million. It is centrally located within the nation’s northeast corridor — 100 miles south of New York City and 133 miles north of Washington, D.C.

*Population*		The Philadelphia-Camden-Wilmington MSA population grew at an average annual rate of 0.45 percent from 1990 to 2000 and 0.30 percent from 2000 to 2010. Over the next 5 years (2010 to 2015) the population is projected to increase at a similar annual rate of 0.28 percent. In comparison, the State of Pennsylvania realized population growth at an average annual rate of 0.33 percent from 1990 to 2000, 0.17 percent from 2000 to 2010 and is projected to decline at a rate of 0.24 percent per year from 2010 to 2015. Bucks County has realized population increases over the past decade. The County’s population increased at an average annual rate of 1.04% from 1990 to 2000 and 0.44% from 2000 to 2010. It is projected to increase at a rate of 0.13% percent per year from 2010 to 2015.

		The following table details historic and anticipated future population trends for the region.

REGIONAL POPULATION TRENDS


					Annual					Annual					Annual
	1990		2000		Avg. Growth			2010		Avg. Growth			2015		Avg. Growth
	Census		Census		1990-2000			Estimate		2000-2010			Projection		2010-2015

Bucks County		541,178		597,632		1.04	%		624,016		0.44	%		631,870		0.13	%
P-C-W MSA		5,435,454		5,687,144		0.45	%		5,858,986		0.30	%		5,941,244		0.28	%
Pennsylvania		11,881,633		12,281,054		0.33	%		12,493,447		0.17	%		12,644,007		0.24	%


Source:		DemographicsNow; Compiled by KTR


*Economic Overview*		According to the Bureau of Labor Statistics, the total civilian labor force for the Philadelphia-Camden-Wilmington MSA was 2,683,300 in March 2011. The following table illustrates the diversification of the MSA’s workforce. As noted, a majority of the area’s work force is employed in the Services, Trade, Transportation & Utilities and Government sectors.

KTR Real Estate Advisors, LLC



Village of Pennbrook Apartments		June 8, 2011
Levittown, PA		Page 6

PHILADELPHIA-CAMBDEN-WILLMINGTON MSA
EMPLOYMENT BY INDUSTRY — MARCH 2011


	Number Employed		12-Month
Industry Category	(In Thousands)		Percent Change

Mining, Logging and Construction		93.7		0.2	%
Manufacturing		183.7		-1.4	%
Trade, Transportation and Utilities		492.8		0.2	%
Information		50.5		-2.3	%
Financial Activities		200.6		0.5	%
Professional and Business Services		402.0		0.7	%
Educational and Health Services		572.8		2.5	%
Leisure and Hospitality		216.8		3.3	%
Other Services		119.8		1.4	%
Government		350.6		-2.2	%
Total		2,683.3		0.6	%


Source:		Bureau of Labor Statistics


*Income*		The median household income for the Philadelphia-Camden-Wilmington MSA was $58,414 in 2010 compared to $49,335 indicated by the State. Bucks County’s 2010 median household income is $72,842, which is significantly above the State and MSA income levels. The median household income for the Philadelphia-Camden-Wilmington MSA is forecast to grow at an average annual rate of 1.38 percent between 2010 and 2015.

REGIONAL MEDIAN HOUSEHOLD INCOME TRENDS


					Annual					Annual					Annual
	1990		2000		Avg. Growth			2010		Avg. Growth			2015		Avg. Growth
	Census		Census		1990-2000			Estimate		2000-2010			Projection		2010-2015

Bucks County	$	43,342	$	59,766		3.79	%	$	72,842		2.19	%	$	77,388		0.62	%
P-C-W MSA	$	35,743	$	48,268		3.05	%	$	58,414		1.93	%	$	62,545		1.38	%
Pennsylvania	$	29,137	$	40,115		3.25	%	$	49,335		2.09	%	$	53,134		1.50	%

Source: DemographicsNow; Compiled by KTR


		Other than Cherry Hill in New Jersey, Philadelphia’s most affluent areas are located primarily within the metro area’s western and northern suburbs. Heading west out of the City, households with incomes of $100,000 or more are concentrated in Montgomery County’s townships of Lower Merion, Upper Merion and through King of Prussia to the northeastern region of Chester County. Other pockets of high-income households west of the City are found in Concordville in Delaware County and New Garden in Southern Chester County. North of the City, the wealthiest households are located in Willow Grove within Montgomery County and Richboro in Bucks County. The most affluent area of Center City Philadelphia is Rittenhouse Square.

KTR Real Estate Advisors, LLC



Village of Pennbrook Apartments		June 8, 2011
Levittown, PA		Page 7


*Transportation*		Philadelphia’s transportation network is one of the more comprehensive in the nation and includes modes of transportation by land, air and water. More than 2,500 miles of federal and state highways run through the metropolitan area, making it accessible from any direction. The most significant addition to the freeway system is the 21.5-mile Mid-County Expressway, commonly known as the “Blue Route,” which was completed in 1992 after 25 years of construction. The expressway serves as a beltway through Philadelphia’s western suburbs and provides travelers with a connection between Interstate 95 at Chester, southwest of the City and Interstate 76, also known as the Pennsylvania Turnpike, at Plymouth Meeting northwest of the City. Major interstates that run through and around downtown Philadelphia include I-95, I-76 and I-676.

		The region’s rail and public transit infrastructure is comprised of several different systems. Philadelphia’s Amtrak station is the second busiest and handled more than 3.97 million passengers in 2008, providing convenient, high-speed connections to Boston, New York City, Baltimore and Washington, D.C. The City Transit Division of the Southeastern Pennsylvania Transportation Authority (SEPTA) serves the City of Philadelphia with a system of 84 subway, light rail, trackless trolley and bus routes providing nearly 554,000 passenger trips per day. The Regional Rail Division of SEPTA serves all five suburban Philadelphia counties with seven commuter rail lines providing nearly 79,000 passenger trips per day. SEPTA’s Suburban Operations Division serves the western and northern suburbs with a system of 41 inter-urban trolley, light rail and bus routes providing nearly 44,000 passenger trips per day.

		The Port Authority Transit Corporation (PATCO) Hi-Speed line serves commuters in the New Jersey suburbs of Philadelphia. PATCO trains run 24 hours a day from nine stations in New Jersey to four stations in Philadelphia and handles over 40,000 passengers per day.

		Together, the average weekday number of passengers using SEPTA, PATCO, and NJ Transit in 2008 was 309,256.

		Philadelphia International Airport (PHL) is the area’s principal gateway. Positioned at the center of the Northeast corridor, 50% of the American population are within two hours flying time of PHL. The airport handles approximately 500,000 aircraft departures and landings and more than 20 million passengers per year. The Airport provides non-stop flights to more than 80 domestic and 40 international destinations, including non-stop flights to most major European cities. In addition, eight all-cargo airlines handle nearly 590,000 tons of cargo annually. The airport currently consists of five terminals and four runways but recently underwent a major capital improvement program to expand its facilities. The expansion included the construction of a new 5,000 foot, $221 million commuter runway, a $75 million 190,000 square-foot regional terminal accommodating commuter and turbo-prop aircraft, and a new $325 million, 785,000 square-foot international terminal with 12 wide-body international gates that opened approximately two years ago.

KTR Real Estate Advisors, LLC



Village of Pennbrook Apartments		June 8, 2011
Levittown, PA		Page 9


NEIGHBORHOOD ANALYSIS

*Overview*		The subject is located in the Levittown section of Falls Township, in lower Bucks County. Falls Township encompasses a land area of 26.6 square miles and is bordered to the north by Morrisville Borough and Lower Makefield Township, to the south and east by the Delaware River and the State of New Jersey. To the west Tullytown Borough, Bristol Township and Middletown Township border Falls Township. Falls Township is situated approximately 25 miles northeast of Center City Philadelphia and just four miles southwest of downtown Trenton, the state capital of New Jersey.

*Demographics*		Levittown has experienced a decreased in population and household growth over the past several decades. According to DemographicsNow, the 2000 Census shows that the total population in Levittown was 54,176. The 2010 estimated population is 50,764 and the 2015 projected population is reported to decrease to 47,758. The average household income in 2000 was $57,986 with a median household income of $53,032. The average household income in 2010 is estimated to be $69,839 with a median of $57,967.

*Transportation*		The area is less than five miles from Interstate 95. I-95 is a primary north/south transportation link along the east coast. In Falls Township, there are interchanges at Old Lincoln Highway (Business Route 1) and at the US Route 1 Bypass. US Route 1 Bypass is a four lane limited access highway that extend from the Pennsylvania Turnpike interchange, in Bensalem Township north to New Jersey. Route 13 is a four lane limited access highway with interchanges at Mill Creek Road, Penn Valley Road, Tyburn Road, Newbold Road and at the Route 1 Bypass. The CONRAIL, SEPTA and Amtrak rail lines serve Falls Township. All major township industrial parks are served by rail. In addition, CONRAIL operates a large Intermodal Switch yard on Cabot Boulevard in the northern part of the Township. This facility allows the transfer of cargo from truck to railcar.

*Immediate Neighborhood*		The area is generally suburban in nature. Surrounding land uses consist of similar multi-family and single family residential properties. The subject’s neighborhood is accessible via Route 13 and Mill Creek Road. There are no detrimental land uses in the immediate area. The subject enjoys easy highway access to Route 13 and is within five miles of I-95.

		The subject is situated within a working class community in a densely developed portion of eastern Pennsylvania. The prospects for the future of this community remain fairly positive.

KTR Real Estate Advisors, LLC



Village of Pennbrook Apartments		June 8, 2011
Levittown, PA		Page 10


SITE ANALYSIS

*Location*		Southeast corner of Mill Creek Road and Route 13, in Levittown, PA. The physical address of the property is 9071 Mill Creek Road.

*Site Area*		64.057 acres, which equates to 2,790,323 square feet.

*Street Frontage*		The subject has 865 feet of frontage along the south side of Mill Creek Road and 2,110 feet of frontage along the east side of Route 13.

*Topography*		The site is level at grade.

*Shape*		The parcel is irregularly shaped.

*Excess/Surplus Land*		Traffic circulation throughout the property and an adequate number of parking spaces is provided on concrete paved drives and surface lots. The building setbacks allow for landscaped buffers, similar to surrounding properties. There does not appear to be excess or surplus land.

*Utilities*		All customary municipal services and utility hookups are provided.

*Soil Information*		No adverse conditions were readily apparent.

*Flood Hazard*		According to the Federal Emergency Management Agency (FEMA), the subject property is within the AE flood zone, which is within 250 feet of multiple flood zones. The corresponding map number is 420188-0466F dated May 18, 1999.

*Easements and Encroachments*		No title report or survey showing the location of easements was provided in connection with this assignment. Thus, it is not possible to make a definitive conclusion regarding any potential impacts on value of the location of any such easements or encroachments. Visual observations of the site revealed no adverse easements or encroachments. It appears as though the site is encumbered by utility and access easements typical of a developed site. It is specifically assumed that any easements, restrictions or encroachments that might appear against the title would have no adverse impact on its marketability.

*Environmental*		No readily observable adverse environmental site conditions were noted. No environmental reports were provided for review.

*Accessibility/Visibility*		Main ingress and egress to the property is via Mill Creek Road. Accessibility is good.

*Improvements*		A 722-unit garden apartment complex completed in 1969 with 32 apartment buildings, a clubhouse, a tennis court, a swimming pool, playgrounds, a mini mart, and mature landscaping. The property is 95.8% occupied and is in average physical condition.

*Conclusions*		The physical attributes of the site are well suited for the existing development and use.

KTR Real Estate Advisors, LLC


Village of Pennbrook Apartments		June 8, 2011
Levittown, PA		Page 12


IMPROVEMENT ANALYSIS

*Year Built/Renovated*		The facility was completed in 1969 as a garden-style apartment complex. There were no major renovations within the last three years.

*Layout & Configuration*		The complex consists of 32, two-story garden apartment buildings containing 722 apartments with a rentable area of 660,220 square feet. The buildings are sited along internal drives that are integrated with the parking lots. There is a mini mart with four commercial units located along Mill Creek Road at the main entrance to the property, which is also part of the subject.

*Leasable Area/Unit Mix*		The following chart summarizes the unit mix and sizes of the various floor plans as indicated by review of a client provided rent roll data and floor plans.

UNIT MIX AND FLOOR AREAS


Unit Code	Unit Type	Mix		Size		Total SF

1A10	1B/1B S		22		585		12,870
1B10	1B/1B L		24		620		14,880
1C10	1B/1B w Den		252		905		228,060
2A10	2B/1B S		276		930		256,680
2B10	2B/1B L		24		950		22,800
2A20	2B/2B		62		985		61,070
2B20	2B/2B w Den		62		1,030		63,860


Total/Avg			722				660,220


Source: Client provided rent roll data and floor plans; compiled by KTR


EXTERIOR
*Structure*		The foundations consist of reinforced concrete slabs poured on grade. Structural framing is wood stud walls with interior gypsum-clad drywall.

*Floors*		The floors are constructed of engineered wood trusses.

*Walls*		The exterior of the buildings are vinyl siding or brick.

*Windows*		Individual unit windows are double pane glass set in aluminum frames. Entry doors are metal set in wood frame. Sliding glass doors provide access to the balconies.

*Roof*		The buildings have single pitched roofs with composition shingles.

INTERIOR FINISHES
*Walls and Ceilings*		Textured and painted drywall

*Flooring*		Flooring consists of carpeting and tile.

*Kitchens*		Typical appliance package includes a refrigerator/freezer, a stove and dishwasher. Cabinets are wood and countertops are for-mica.

KTR Real Estate Advisors, LLC


Village of Pennbrook Apartments		June 8, 2011
Levittown, PA		Page 13


*Bathrooms*		Shower/tub, toilet, vanity with sink and mirrored medicine cabinet. Tubs have ceramic tile wainscoting.

MECHANICAL SYSTEMS
*HVAC*		Cool air and heat is provided by individual split systems with exterior condensers. The system is similar to competing properties.

*Electric Service*		Adequate electric service is provided. Each apartment has a separate panel.

*Plumbing*		Each unit is serviced by an individual electric water heater.

*Fire Protection*		The subject property is not equipped with a fire sprinkler system. The apartments are eqquipped with smoke detectors.

ANCILLARY AREAS
*Landscaping*		Landscaping is of mature vegetation. Native trees and shrubs are plentiful throughout the common areas. Seasonal color is provided in beds along the main entrance points and near the pool and office area.

*Parking*		The internal drive incorporates the surface parking lots. There are reportedly 1,484 parking spaces. The drives and parking lots are alsphat paved.

*Recreational Amenities*		A tennis court, a swimming pool, a playground, a gym, a clubhouse and mature landscaping.

*FF&E*
*Personal Property*		The subject property has office furnishings and equipment for the staff in the office and various chairs and tables for the barbeque area. Kitchen appliances are also part of personal property. The FF&E are similar to competitive properties.

ELEMENTS OF DEPRECIATION

		Based on our field inspection, we note that some elements of depreciation are present at the subject property.

*Physical Deterioration*		The overall physical condition is good with adequate maintenance levels. Physical deterioration is primarily limited to general aging and normal wear and tear. No material elements of deferred maintenance were noted during the appraiser’s inspection of the property. Carpet and mechanical equipment in the individual units are updated and/or replaced on an as-needed basis. According to Marshall Valuation Service, buildings similar to the subject property have an economic life of approximately 50 years. The actual average age of the property is estimated to be 41 years. As a result of on-going maintenance, the effective age is estimated to be less than the actual age of the improvements. The effective age is estimated at 25 years.

*Capital Improvements*		No major capital improvements are planned in the near term.

KTR Real Estate Advisors, LLC


Village of Pennbrook Apartments		June 8, 2011
Levittown, PA		Page 15


ZONING ANALYSIS

*Introduction*		According to Falls Township, the subject property is situated in an HR High-Density Residential District. The purpose and intent of this district is to provide areas for attached dwellings at appropriate locations on arterial and collector streets and near convenient shopping, to broaden the Township’s housing base and therefore serve a greater variety of housing needs, to provide reasonable standards to prevent overcrowding of land, to regulate the density of population and to avoid undue congestion in the streets, to allow for the harmonious development of attached dwellings and to create conditions conducive to carrying out the broad purposes of this chapter.

		The principal permitted uses includes all low-density dwellings, townhouses and other attached dwellings, garden apartments and high-rise apartments. No commercial uses are permitted under the HR zone.

		The bulk restrictions in the HR High-Density Residential District are summarized in the following table.

HR — HIGH DENSITY RESIDENTIAL DISTRICT


RESTRICTION		SIZE

Minimum lot area		6 acres
Minimum lot frontage		200 feet
Minimum lot width		200 feet
Minimum lot depth		600 feet
Minimum perimeter yard		35 feet
Minimum distance between buildings, no facing windows		50 feet
Maximum building coverage		15%
		1.75 per each one-bedroom;
		2 per each two-bedroom;
Minimum Parking		1 guest space for each 10 units


Source: Falls Township Code of Ordinances; Compiled by KTR.


*Conclusions*		The subject has a rentable area of 660,220 square feet. As all the residential dwellings are two-story buildings, the footprint of the building is 330,110. The building coverage is less than 15%. According to management, there are 1,484 parking spaces at the site, which is greater than the minimum requirement set forth by the zoning code. The residential portion of the subject appears to represent a legal and conforming use.

		The subject also includes a mini mart with four commercial tenants, which mainly serve the subject’s residents. As commercial use is not permitted under HR zone, this portion is considered a legal but non-conforming use.

KTR Real Estate Advisors, LLC


Village of Pennbrook Apartments		June 8, 2011
Levittown, PA		Page 16


REAL ESTATE ASSESSMENTS AND TAXES

*Overview*		According to the Falls Township tax record, the subject property is identified as Parcel Number 13-040-005. The taxable value is multiplied by the current millage rate to calculate the taxes payable. Revaluation occurs every year. The subject’s current assessment is shown below.

SUBJECT PROPERTY ASSESSMENT


Land Value	Building Value	Taxable Value

$490,000	$3,830,000	$4,320,000


Source: Falls Township Finance Office


*Comparable Assessments*		Similar properties within the area were surveyed to ascertain the reasonableness of the subject’s current assessment. The subject’s current assessment is $5,983 per unit. The comparables range between $5,320 and $7,075 per unit. The subject’s assessment is within the comparable range. Based on discussions with the Assessor, the assessment appears reasonable and has been processed.

TAX COMPARABLES


		Assessed		Year		Assessed		Assessment
Property Name	Tax ID	Value		Built		Units		Per Unit

Village of Pennbrook (Subject)	13-040-005	$	4,320,000		1969		722	$	5,983
Chesterfield	22-049-078, 078-1, 080	$	1,330,400		1968		247	$	5,386
Orangewood	05-041-009	$	1,702,400		1967		320	$	5,320
Raquet Club	22-039-074, 22-059-034	$	3,297,000		1970		466	$	7,075


Source: Falls Township Finance Office, compiled by KTR


*Mill Rate*		Mill rates have remained relatively stable over the past several years. The 2011 mill rates for the County, Township and school are 7.22, 21.94 and 150.30, respectively for a total of 179.46.

*Real Estate Tax Projection*		Future increases in reassessments are expected to reflect annual increases near the anticipated inflation rate during the same period. Tax rates are expected to remain relatively stable. The total amount is anticipated to increase at a rate near the long-term average inflation rate.

*Tax Calculation*		The subject’s real estate tax liability is calculated utilizing the current assessment and the current tax rate, which equates to $775,267. It has been processed in the valuation.

KTR Real Estate Advisors, LLC


Village of Pennbrook Apartments		June 8, 2011
Levittown, PA		Page 17


APARTMENT MARKET ANALYSIS

*Area Apartment Market*		According to a market study performed by REIS, a national commercial real estate data source, the subject is located in the Lower Bucks submarket. The immediate area is comprised of garden style apartment complexes, vacant land and commercial uses. REIS indicates that as of the 4^thquarter 2010, the most recent data available, the vacancy rate in the submarket was 4.1%, lower than the previous quarter of 4.8%. The median asking rent in the Lower Bucks submarket is $881 per unit, with studios asking for $606 per month, one-bedroom units $824 per month and two-bedroom units $1,028 per month. It is reported that there has been no new constructions in the subject’s Lower Bucks County, while the absorption during the past year was 156 units.

*Subject Property*		The subject units have average sizes and finishes consistent with that of the market. According to the April 28, 2011 rent roll, the subject’s current contract rents average $960.85 per month. The one-bedroom apartments range between $682.00 and $1,127.00 per month; the two-bedroom/one bathroom units range between $787.00 and $1,249.00 per month and the two-bedroom/two bathroom units range between $905.00 and $1,364.00 per month.

		Per the rent roll, there were 20 units reported to be vacant. The asking rents for the one-bedroom apartments range between $797 and $903 per month; the two-bedroom/one bathroom apartments range between $1,192 and $1,199 per month and the two-bedroom/two bathroom units range between $1,227 and $1,289 per month.

*Competitive Set*		In order to determine the reasonableness of the subject’s asking rents, a survey of comparable apartment complexes in the market was conducted. The subject competes with a number of properties in the area. All of the properties are in close proximity to the subject and define the range of property, unit types and rental rates available in the market. The information regarding the rent comparables was obtained through physical inspections and direct interviews with rental agents and property managers. The following map illustrates the location of the comparable properties in relation to the subject. Data sheets summarizing details of the comparable properties follow the map.

KTR Real Estate Advisors, LLC


Village of Pennbrook Apartments		June 8, 2011
Levittown, PA		Page 23


*ANALYSIS*		The comparable rental properties are all in the vicinity of the subject property. The comparable properties were constructed between 1967 and 1973. The units and complex amenities are similar to the subject. The rental rates illustrated by the comparable properties provide a good indication as to the appropriate market rent of the subject property.

*One-Bedroom Units*		The subject property offers three one-bedroom unit floor plans, which are 585, 620 and 905 square feet, respectively with average asking rents ranging between $797 and $903 per month or $1.00 to $1.36 per square foot. The comparable one-bedroom units range in size from 570 to 910 square feet and have monthly asking rents ranging from $800 to $1,060 per month or $1.01 to $1.54 per square foot.

ONE-BEDROOM FLOOR PLANS


	Unit Size		Rent/Month		Rent/SF		Comment

Subject		585		$797		$1.36	Subject
		620		$825		$1.33	Subject
		905		$903		$1.00	Subject
Chesterfield		570-690		$800-$880		$1.16-$1.54	Similar
Orangewood		890-910		$915-$960		$1.01-$1.08	Similar
Hidden Forest		727		$910-$930		$1.25-$1.28	Superior
Raquet Club		773-831		$925- $1,060		$1.11-$1.37	Similar

Subject Range		585-905		$797-$903		$1.00-$1.36
Comparable Range		570-910		$800- $1,060		$1.01-$1.54


		The subject’s asking rents are roughly bracketed by the competing properties, with the small one-bedroom units asking just below the low end of the comparable range. After considering variances for unit size and amenity packages, the subject’s asking rents for the one-bedroom floor plans appear reasonable and have been processed at $800 per month for the 585 square foot units, $825 for the 620 square foot units and $905 for the 905 square foot units.

*Two-Bedroom/One Bath Units*		The subject property offers two two-bedroom/one-bath unit floor plans, which are 930 and 950 square feet, respectively with average asking rents between $1,192 and $1,199 per month or $1.26 to $1.28 per square foot. The comparable two-bedroom/one bathroom units range in size from 872 to 1,100 square feet and have monthly asking rents ranging from $1,080 to $1,135 per month or $0.98 to $1.27 per square foot.

KTR Real Estate Advisors, LLC


Village of Pennbrook Apartments		June 8, 2011
Levittown, PA		Page 24

TWO-BEDROOM/ONE BATH FLOOR PLANS


	Unit Size		Rent/Month		Rent/SF		Comment

Subject		930		$1,192		$1.28	Subject
		950		$1,199		$1.26	Subject
Orangewood		1,080-1,100		$1,080-$1,135		$0.98-$1.05	Similar
Hidden Forest		872		$1,090-$1,110		$1.25-$1.27	Similar

Subject Range		930-950		$1,192-$1,199		$1.26-$1.28
Comparable Range		872-1,100		$1,080-$1,135		$0.98-$1.27


		The subject’s asking rents are higher than the competing properties on a monthly basis and at the high end of the comparable range on a square foot basis. After considering variances for unit size and amenity packages, the subject’s asking rents for the two-bedroom/one-bath floor plans appear slightly above market. As the average contract rents for these two unit types at the subject are $969 and $1,027 per month, respectively, we have concluded the market rent for the subject’s two-bedroom one-bath units at $975 and $1,025, respectively.

*Two-Bedroom/Two Bath Units*		The subject property offers two two-bedroom/two-bath unit floor plans, which are 985 and 1,030 square feet, respectively with average asking rents of $1,227 and $1,289 per month or $1.25 per square foot. The comparable two-bedroom/two bathroom units range in size from 835 to 1,100 square feet and have monthly asking rents ranging from $1,020 to $1,610 per month or $1.13 to $1.55 per square foot.

TWO-BEDROOM/TWO BATH FLOOR PLANS


	Unit Size		Rent/Month		Rent/SF		Comment

Subject		985		$1,227		$1.25	Subject
		1,030		$1,289		$1.25	Subject
Chesterfield		835		$1,020-$1,075		$1.22-$1.29	Similar
Hidden Forest		895-912		$1,160-$1,200		$1.30-$1.32	Superior
Raquet Club		1,000-1,100		$1,130-$1,610		$1.13-$1.55	Similar

Subject Range		985-1,030		$1,227-$1,289		$1.25
Comparable Range		835-1,100		$1,020-$1,610		$1.13-$1.55


		The subject’s asking rents are bracketed by the competing properties. After considering variances for unit size and amenity packages, the subject’s asking rents for the two-bedroom/two bathroom floor plans appear reasonable and have been processed at $1,225 per month for the 985 square foot units and $1,290 for the 1,030 square foot units.

KTR Real Estate Advisors, LLC


Village of Pennbrook Apartments		June 8, 2011
Levittown, PA		Page 26


HIGHEST AND BEST USE

*Introduction*		Highest and Best Use is defined by the Appraisal Institute in The Dictionary of Real Estate Appraisal, Fifth Edition, Chicago, Illinois, Appraisal Institute, 2010, which states:

		That reasonably probable and legal use of vacant land or an improved property, which is physically possible, appropriately supported, financially feasible and that results in the highest value. The four criteria the highest and best use must meet are legal permissibility, physical possibility, financial feasibility and maximum productivity.

		There are typically two Highest and Best Use scenarios: the Highest and Best Use of the property as vacant and the Highest and Best Use of the site as if improved.

*HIGHEST AND BEST USE AS VACANT*

		Highest and Best Use As Vacant is defined as “among all reasonable, alternative uses, the use that yields the highest present land value, after payments are made for labor, capital, and coordination. The use of a property based on the assumption that the parcel of land is vacant or can be made vacant by demolishing any improvements.”

		The site is zoned within the HR-High Density Residential Zoning District that allows for a variety of residential uses. The maximum value of a property is typically realized when a reasonable degree of homogeneity is present. Thus, conformity in use is usually a highly desirable aspect of real property, since it creates and/or maintains value. The immediate area is primarily developed with garden style apartment complexes, vacant land and commercial uses. Based on the principal of conformity and the subject’s zoning, the highest and best use of the property, if vacant, is residential development.

*HIGHEST AND BEST USE AS IMPROVED*

		Highest and Best Use As Improved is defined as “the use that should be made of a property as it exists. An existing property should be renovated or retained as is so long as it continues to contribute to the total market value of the property, or until the return from a new improvement would more than offset the cost of demolishing the existing building and constructing a new one”.

		The subject represents a legal, conforming improvement relative to current zoning restrictions. No redevelopment of the site would provide a greater return to the land. Based on the fact that the potential income associated with the existing improvements provides a fair return to the land with residual income to the improvements, the highest and best use of the subject, as improved, is its current use.

KTR Real Estate Advisors, LLC


Village of Pennbrook Apartments		June 8, 2011
Levittown, PA		Page 27


VALUATION PROCESS

*INTRODUCTION*		There are three traditional approaches that can be employed in establishing the market value of the subject property. In practice, an approach to value is included or omitted based on the property type and the quality and quantity of information available in the marketplace. These approaches and their applicability to the valuation of the subject are summarized as follows.

*Income Approach*		The Income Capitalization Approach is based on the premise that value is derived by converting anticipated benefits into property value. Anticipated benefits include the present value of the net income and the present value of the net proceeds resulting from the re-sale of the property.

		There are two methods of accomplishing this: (1) direct capitalization of a single year’s income by an overall capitalization rate and; (2) the discounted cash flow in which the annual cash flows and reversionary value are discounted to a present value for the remainder of the property’s productive life or over a reasonable holding (ownership) period.

		The subject property has an adequate operations history to determine the income-producing capabilities over the near future. In addition, performance levels of competitive properties serve as an adequate check as to the reasonableness of the subject property’s actual performance. As such, the income capitalization approach is utilized in this appraisal.

*Sales Comparison*		The sales comparison approach is an estimate of value based upon a process of comparing recent sales of similar properties in the surrounding or competing areas to the subject property. Inherent in and central to this approach is the principle of substitution. This comparative process involves judgment as to the similarity of the subject property and the comparable sales with respect to many value factors such as location, contract rent levels, quality of construction, reputation and prestige, age and condition and the interest transferred, among others. The value estimated through this approach represents the probable price at which the subject property would be sold by a willing seller to a willing and knowledgeable buyer as of the date of value.

		The reliability of this technique is dependent upon the availability of comparable sales data, the verification of the sales data, the degree of comparability and extent of adjustment necessary for differences and the absence of atypical conditions affecting the individual sales prices. Although the volume of sales activity has decreased as a result of market conditions, research revealed adequate sales activity to form a reasonable estimation of value via this approach.

KTR Real Estate Advisors, LLC


Village of Pennbrook Apartments		June 8, 2011
Levittown, PA		Page 28


*The Cost Approach*		The application of the cost approach is based on the principle of substitution. This principle may be stated as follows: no one is justified in paying more for a property than the cost to develop a substitute property of equivalent desirability and utility. In the case of a new building, no deficiencies in the building should exist. The Cost Approach is typically only a reliable indicator of value for (a) new properties; (b) special use properties; and (c) where the cost of reproducing the improvements is easily and accurately quantified and there is no external obsolescence. In all instances, the issue of an appropriate entrepreneurial profit — the reward for undertaking the risk of construction — remains a highly subjective factor.

		Investors are generally not buying, selling, or lending with reliance placed on the Cost Approach. Furthermore, based on the age of the improvements, the Cost Approach would lend little insight into the market value of the property. Accordingly, the Cost Approach has been excluded from the scope of this appraisal.

*Reconciliation*		The final step in the appraisal process is to reconcile the various value indications into a single estimate. Each approach is reviewed in order to determine its appropriateness relative to the subject. The accuracy of the data available and the quantity of evidence are weighted in each approach. The resulting estimate represents the subject property’s market value as defined in the appraisal.

KTR Real Estate Advisors, LLC


Village of Pennbrook Apartments		June 8, 2011
Levittown, PA		Page 29


INCOME CAPITALIZATION APPROACH

*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 value 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 the Discounted Cash Flow Analysis.

		The Direct Capitalization method is considered most relevant and has been processed. 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.

*REVENUE ANALYSIS*
*Potential Gross Income*		The potential gross income from the apartment has been calculated to be $715,090 per month or $8,581,080 for the appraised year based on the analysis and conclusions derived in the Apartment Market Analysis section.

*Loss to Lease*		Loss to lease considers a loss in income due to leases in effect, whereby effective rental rates are lower than asking or market rental rates. In the case of the subject property, the loss to lease also accounts partially for concessions that are offered in the form of reduced rent.

		The operating statements under review indicate the historical loss to lease was positive 0.1 percent of gross potential rent in 2008, positive 7.1 percent in 2009 and negative 0.9 percent in 2010. Loss to lease was not budgeted for 2011. The submitted April 28, 2011 rent roll indicated a loss to lease of approximately negative 12.6 percent. Considerate of the historical data, a loss to lease of negative 2.0 percent of gross rent potential has been processed.

*Concessions*		Concessions within the subject’s influencing area are common. Each of the properties surveyed as rent comparables offer some form of rent concession. The concessions consist of reduced rent or free rent over a portion of the lease term.

		According to operating statements under review, concessions were 1.6 percent in 2008, 2.4 percent in 2009 and 2.1 percent in 2010. Based on the historical experience, concessions of 2.0 percent have been processed in this analysis.

KTR Real Estate Advisors, LLC


Village of Pennbrook Apartments		June 8, 2011
Levittown, PA		Page 30


*Vacancy/Credit Loss*		The subject was reportedly 94.6% occupied in 2008, 89.6% percent occupied in 2009, 95.5% occupied in 2010 and is budgeted at 95.0% in 2011. As of the April 28, 2011 rent roll, the property was 97.2% occupied. The 2010 and current occupancy levels are consistent with the range of occupancy levels reported by competitors in the immediate vicinity. Occupancy levels for the competing properties in the influencing market are outlined as follows:

OVERVIEW OF COMPETITIVE OCCUPANCY LEVELS


Property	Year Built		Total Units		Occupancy

Chesterfield		1968		247		97	%
Hidden Forest		1973		238		95	%
Raquet Club		1970		466		97	%


		The subject occupancy is currently operating at stabilized occupancy. The subject should reasonably maintain this level into the foreseeable future. In addition to vacancy, the 2011 budget include a 1.0 percent allowance for bad debt. A stabilized vacancy and credit loss of 5.0 percent has been utilized in this appraisal.

*Commercial Rent*		There is a mini-mart at the subject that includes four commercial tenants. According to the leases, the total commercial rent in the 2011 appraisal year will be $116,091, which has been applied in the analysis.

*Miscellaneous Income*		Typically, apartment projects receive additional revenue from sources such as utility reimbursements, vending, application fees, late fees, bad check charges and deposit forfeitures. Income receipts at the subject property were $1,647 per unit in 2008, $1,811 per unit in 2009, $1,650 per unit in 2010 and are budgeted at $1,692 per unit in 2011. This income is projected based on the 2011 budget at $1,700 per unit.

*Non-income Producing Units*		There are two model units at the subject and a deduction from potential gross income was applied in 2008, 2009 and 2010. This line item was not budgeted in 2011; however, the model units still exist. Accordingly, market rent has been applied to these units and deducted from the gross potential income equating to $22,560 for the appraised fiscal year.

*OPERATING EXPENSES*		In order to estimate expenses for the subject property, we have analyzed the subject’s operating expenses for 2008, 2009 and 2010 as well as the budget for 2011. These historical and budgeted amounts have been compared to the median dollar amount per unit reported by IREM for garden apartments in the Philadelphia Area. The subject’s operating statements under review have been reconstructed and summarized as follows.

KTR Real Estate Advisors, LLC


Village of Pennbrook Apartments		June 8, 2011
Levittown, PA		Page 31

RECONSTRUCTED OPERATING STATEMENTS


No. of Units	722									722									722									722									2010 IREM
Year	2008									2009									2010									2011 Budget									Median $/Unit
	Actual			Per Unit			Percent			Actual			Per Unit			Percent			Actual			Per Unit			Percent			Budget			Per Unit			Percent			Philly MSA

INCOME							% of GRP									% of GRP									% of GRP									% of GRP

Gross Rent Potential (Market Rent)	$	8,743,346		$	12,110			100.0	%	$	8,085,754		$	11,199			100.0	%	$	8,366,946		$	11,589			100.0	%	$	8,249,268		$	11,426			100.0	%
Loss to Lease	$	10,563		$	15			0.1	%	$	576,207		$	798			7.1	%	$	(75,951	)	$	(105	)		-0.9	%	$	0		$	0			0.0	%
Concessions	$	(141,940	)	$	(197	)		-1.6	%	$	(192,589	)	$	(267	)		-2.4	%	$	(179,159	)	$	(248	)		-2.1	%	$	(55,845	)	$	(77	)		-0.7	%
Vacancy/Credit/Non-revenue Units	$	(471,355	)	$	(653	)		-5.4	%	$	(841,524	)	$	(1,166	)		-10.4	%	$	(374,470	)	$	(519	)		-4.5	%	$	(457,975	)	$	(634	)		-5.5	%

Net Rental Income (NRI)	$	8,140,614		$	11,275			93.1	%	$	7,627,848		$	10,565			94.3	%	$	7,737,366		$	10,717			92.5	%	$	7,735,448		$	10,714			93.8	%
Commercial Income	$	67,368		$	93			0.8	%	$	73,740		$	102			0.9	%	$	99,976		$	138			1.2	%	$	115,991		$	161			1.4	%
Other Income	$	1,189,324		$	1,647			13.6	%	$	1,307,571		$	1,811			16.2	%	$	1,191,466		$	1,650			14.2	%	$	1,221,922		$	1,692			14.8	%
Administrative Units	$	(23,226	)	$	(32	)		-0.3	%	$	(21,931	)	$	(30	)		-0.3	%	$	(23,076	)	$	(32	)		-0.3	%	$	0		$	0			0.0	%

Total Property Income (EGI)	$	9,374,080		$	12,983			107.2	%	$	8,987,228		$	12,448			111.2	%	$	9,005,732		$	12,473			107.6	%	$	9,073,361		$	12,567			110.0	%

EXPENSES							% of EGI									% of EGI									% of EGI									% of EGI

Utilities	$	924,337		$	1,280			9.9	%	$	853,701		$	1,182			9.5	%	$	918,134		$	1,272			10.2	%	$	884,649		$	1,225			9.7	%	$	1,103
Maintenance & Repairs	$	619,883		$	859			6.6	%	$	628,974		$	871			7.0	%	$	633,290		$	877			7.0	%	$	550,370		$	762			6.1	%	$	770
Payroll	$	818,354		$	1,133			8.7	%	$	849,180		$	1,176			9.4	%	$	846,120		$	1,172			9.4	%	$	904,583		$	1,253			10.0	%	$	792
Marketing	$	81,217		$	112			0.9	%	$	59,746		$	83			0.7	%	$	89,518		$	124			1.0	%	$	80,103		$	111			0.9	%	$	451
Administration/Office	$	132,111		$	183			1.4	%	$	200,911		$	278			2.2	%	$	224,245		$	311			2.5	%	$	256,652		$	355			2.8	%	$	594
Management Fee	$	459,881		$	637			4.9	%	$	444,525		$	616			4.9	%	$	445,320		$	617			4.9	%	$	453,774		$	628			5.0	%	$	451
Insurance	$	246,286		$	341			2.6	%	$	210,649		$	292			2.3	%	$	224,488		$	311			2.5	%	$	214,225		$	297			2.4	%	$	234
Real Estate Taxes	$	725,478		$	1,005			7.7	%	$	751,805		$	1,041			8.4	%	$	763,024		$	1,057			8.5	%	$	790,903		$	1,095			8.7	%	$	1,081
Reserves	$	0		$	0			0.0	%	$	0		$	0			0.0	%	$	0		$	0			0.0	%	$	0		$	0			0.0	%	$	0

TOTAL EXPENSES	$	4,007,547		$	5,551			42.8	%	$	3,999,491		$	5,539			44.5	%	$	4,144,139		$	5,740			46.0	%	$	4,135,259		$	5,728			45.6	%	$	5,476

NET OPERATING INCOME	$	5,366,533		$	7,433			57.3	%	$	4,987,737		$	6,908			55.5	%	$	4,861,593		$	6,734			54.0	%	$	4,938,102		$	6,839			54.4	%

Source: Client Submitted Information; compiled by KTR

KTR Real Estate Advisors, LLC


Village of Pennbrook Apartments		June 8, 2011
Levittown, PA		Page 32


*Overview*		All of the expenses have fluctuated during the past couple of years. In general, expenses are consistent with market data and reflect stabilized operations. No major changes in operations are expected or appear to be required. Expenses are expected to grow at the average annual inflation rate. Each of the expense items is discussed separately below.

*Utilities*		This expense line item includes charges for common area and individual unit gas, electricity, water/sewer and trash collection. Utility charges are offset by applicable tenant reimbursements. At the subject property, electric is directly metered, while water, gas and trash are billed to tenants. Utility expenses fluctuate with occupancy, weather and changes in supply costs. The utility expenses at the subject property were $1,280 per unit in 2008, $1,182 per unit in 2009, $1,272 per unit in 2010 and are budgeted at $1,225 per unit in 2011. The IREM survey indicated that the median for garden complexes in the area is $1,103 per unit, slightly below the historical and budgeted amounts. Based on the historical expenses, a projection of $1,250 per unit or $902,500 is processed for the utility expense.

*Repairs & Maintenance*		This expense item includes charges for general maintenance and repairs, alarm monitoring and protection services, landscaping and make-ready/turnover. The property appears adequately maintained with no noticeable items of deferred maintenance observed during the walk-thru. The repairs and maintenance expense at the subject property were $859 per unit in 2008, $871 per unit in 2009, $877 per unit in 2010 and is budgeted at $762 per unit in 2011. The IREM survey indicated that the median for garden complexes in the area is $770 per unit, below the historical reported amounts. Our projection is based on the average of the past three years operating history, or $870 per unit or $628,140. A separate Reserves category has been processed in this analysis.

*Payroll*		This expense includes payroll and benefits for the property manager, leasing agent(s), housekeeping and maintenance personnel. The payroll expense were $1,133 per unit in 2008, $1,176 per unit in 2009, $1,172 per unit in 2010 and is budgeted at $1,253 per unit in 2011. The IREM survey indicated that the median for garden complexes in the area is $792 per unit, below the historical and budgeted amounts. Based on the subject’s historical expense data, the budgeted payroll expense appears reasonable and has been processed at $1,250 per unit or $902,500.

*Marketing*		This expense includes advertising, the cost of resident and locator referrals, internal leasing commissions, brochures, newsletters and resident activities. The historical marketing charges at the subject property were $112 per unit in 2008, $83 per unit in 2009, $124 per unit in 2010 and is budgeted at $111 per unit in 2011. The IREM survey reported a marketing expense of $451 per unit. Based on the historical data and the subject’s current occupancy, the budget appears reasonable and has been rounded to $110 per unit or $79,420 is processed. The IREM report appears excessive given the subject’s relatively consistent history.

KTR Real Estate Advisors, LLC


Village of Pennbrook Apartments		June 8, 2011
Levittown, PA		Page 33


*Administration/Office*		This category includes administrative charges and costs associated with the running of the management/leasing office including telephone service, office supplies equipment rental, computers, etc. The administrative expense at the subject property were $183 per unit in 2008, $278 per unit in 2009, $311 per unit in 2010 and is budgeted at $355 per unit in 2011. The IREM survey indicated that the median for garden complexes in the area is $495 per unit, above the historical and budgeted amounts. Based on subject’s own operating experience, an administrative expense of $300 per unit or $216,600 is processed.

*Management Fee*		In the local market management services are typically a function of the revenues produced by the property, usually between 2.0 and 5.0 percent of collections. Based on historical operating statements under review, the subject property was managed for a fee that is equivalent to approximately 5.0 percent of collected income. In consideration of market standards, however, we have processed a market oriented management fee of 3.0 percent of the effective gross income.

*Insurance*		Insurance includes fire, liability, theft, and boiler, exclusive of the premiums paid to employee benefit plans. The historical insurance expenses at the subject property were $355 per unit in 2008, $274 per unit in 2009, $297 per unit in 2010 and are budgeted at $298 per unit in 2011. The IREM survey indicated that the median for garden complexes in the area is $178 per unit, below the historical and budgeted amounts. Based on the historical data, the budgeted insurance expense has been rounded to $300 per unit or $31,200 annually.

*Real Estate Taxes*		Real estate taxes are processed as discussed within the Real Estate Assessment and Tax Analysis section of this appraisal. The real estate tax projection is $775,267.

*Reserves*		Prudent management budgets a certain amount each year in a sinking fund to replace short-lived items, including kitchen appliances and cabinets, bathroom fixtures and tiling, flooring repairs, HVAC replacement and common elements such as the roof, exterior wood and parking areas. Reserves for replacement, while typically not found in submitted operating statements, are necessary in estimating a realistic operating budget so as to maintain the habitability of the apartments. Reserves for replacement for a property of this vintage typically range from $200 to $300 per unit. In order to remain competitive, a reserve of $250 per unit is forecast. This amounts to $180,500.

KTR Real Estate Advisors, LLC


Village of Pennbrook Apartments		June 8, 2011
Levittown, PA		Page 34


*Total Expenses*		On a stabilized basis, the subject’s projected expenses including reserves are projected at $4,175,418, or $5,783 per unit. The indicated operating expense ratio is 45.7% when including reserves. The IREM survey indicated total operating expenses below the projected amounts; however, based on the historical data, these expenses are considered reasonable and have been processed.

*VALUATION PRO FORMA*		The following valuation pro forma summarizes the stabilized income and expenses described above for the appraised fiscal year.

STABILIZED PRO FORMA


Appraised Fiscal Year-ending	5/31/2012
	Total			Per Unit			Percent

INCOME							% of GPI

Gross Rent Potential (Market Rent)	$	8,581,080		$	11,885			100.0	%
Loss to Lease	$	(171,622	)	$	(238	)		-2.0	%
Concessions	$	(171,622	)	$	(238	)		-2.0	%
Vacancy/Credit/Non-revenue Units	$	(429,054	)	$	(594	)		-5.0	%

Net Rental Income (NRI)	$	7,808,782		$	10,815			91.0	%
Commercial Income	$	116,091		$	161			1.4	%
Other Income	$	1,227,400		$	1,700			14.3	%
Administrative Units	$	(22,560	)	$	(31	)		-0.3	%

Total Property Income (EGI)	$	9,129,713		$	12,645			106.4	%

EXPENSES							% of EGI

Utilities	$	902,500		$	1,250			9.9	%
Maintenance & Repairs	$	628,140		$	870			6.9	%
Payroll	$	902,500		$	1,250			9.9	%
Marketing	$	79,420		$	110			0.9	%
Administration/Office	$	216,600		$	300			2.4	%
Management Fee	$	273,891		$	379			3.0	%
Insurance	$	216,600		$	300			3.0	%
Real Estate Taxes	$	775,267		$	1,074			8.5	%
Reserves	$	180,500		$	250			2.0	%

TOTAL EXPENSES	$	4,175,418		$	5,783			45.7	%

NET OPERATING INCOME	$	4,954,295		$	6,862			54.3	%


*Derivation Of Overall Capitalization Rate*		This appraisal will consider the following techniques; (a) derivation from comparable sales and (b) investor surveys.

*Derivation from Sales*		The following table summarizes five sales of garden apartment complexes in the Philadelphia market that closed between May 2010 and March 2011. The overall capitalization rates range from 7.0 to 8.2 percent. The newer properties were traded at lower capitalization rates. This data is directly supportive of the range indicated by the PwC Investor Survey for apartments in the National Apartment Market.

KTR Real Estate Advisors, LLC


Village of Pennbrook Apartments		June 8, 2011
Levittown, PA		Page 35

PHILADELPHIA AREA CAPITALIZATION RATES


Address	Sale Date		Size (sf)		Yr Built		Units		Price		Cap Rate

100 Cobblestone Dr, Coatesville		10/29/2010		364,950		2005		350	$	34,515,000		7.5	%
2311 N Front St, Harrisburg		6/16/2010		216,514		1952		274	$	8,500,000		8.2	%
2200 Lifestyle Ln, Kutztown		3/9/2011		173,696		2008		184	$	29,950,000		7.2	%
1400 MacDade Blvd, Woodlyn		6/7/2010		112,750		1964		160	$	7,500,000		7.5	%
3000-3300 Union Deposit Rd, Harrisburg		5/4/2010		87,746		2005		134	$	6,930,000		7.0	%


		The capitalization rates produced by these sales are a reliable indication as to an appropriate rate for the subject property. Based on recent sales data and considering the age of the subject property, a capitalization rate towards the higher end of the noted range would be reasonable for the subject.

*Investor Surveys*		According to the PwC Real Estate Investor Survey, First Quarter 2011 rates for apartments reported by survey participants active in the market presently range as shown.

NATIONAL APARTMENT MARKET SURVEY


Overall Capitalization Rate	4.00% - 10.00%	Range
	6.29%	Average
Annual Rent Growth Rate	(2.00%) - 5.00%	Range
	1.34%	Average
Annual Expense Growth Rate	0.00% - 4.00%	Range
	2.46%	Average

Source: PwC Real Estate Investor Survey, First Quarter 2011


		As indicated below, overall rates in the National Apartment Market began to increase in the Third Quarter 2008 and continued this trend through the Fourth Quarter of 2009. However, during 2010 and the First Quarter of 2011, average overall rates have decreased by an average of 34.8 basis points per quarter. This data seems to support the overall perception that multi-family housing has passed its nadir and is attracting significant investor interest resulting in appreciation over 2009 levels.

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
4Q07		5.75	%		-1
3Q07		5.76	%		-4
2Q07		5.80	%		-9
1Q07		5.89	%		-8

Source: PwC Real Estate Investor Survey

KTR Real Estate Advisors, LLC


Village of Pennbrook Apartments		June 8, 2011
Levittown, PA		Page 36


*Conclusion of OAR*		The subject is an average quality apartment complex situated in an established residential neighborhood. The property is proximate to employment centers, shopping and neighborhood support facilities. The subject has unit sizes that reflect market parameters. The amenity package is considered standard when compared to properties in the competitive market.

		OARs ranging from 7.0 to 8.2 percent were indicated from comparable sales. Three of the five comparables were fairly recent construction and command lower capitalization rates than the older properties. The PwC survey indicates an average rate for the national apartment market of 6.29 percent. Considering the subject’s age and occupancy, a capitalization rate of 7.5% has been selected.

*VALUE BY DIRECT CAPITALIZATION*
*Stabilized Cash Flow*		The stabilized cash flow is based on the previous income and expense discussion.

*Valuation*		Value is calculated by dividing the stabilized net operating income (including an allowance for Reserves) by the concluded overall capitalization rate. Thus the market value of the leased fee interest is calculated as follows:

		$4,954,295 ÷ 7.5% = $66,057,267

Direct Capitalization Value Conclusion		The Market Value of the Leased Fee Interest in the subject property, free and clear of financing, by the Direct Capitalization method of the Income Capitalization Approach, as of June 1, 2011, is rounded to:

SIXTY SIX MILLION ONE HUNDRED THOUSAND DOLLARS
($66,100,000)

KTR Real Estate Advisors, LLC


Village of Pennbrook Apartments		June 8, 2011
Levittown, PA		Page 37

SALES COMPARISON APPROACH


*VALUATION METHODOLOGY*		The basic steps in processing the sales comparison approach are outlined as follows:

		1. Research the market for recent sales transactions, listings, and offers to purchase or sell properties similar to the subject property.

		2. Select a relevant unit of comparison and develop a comparative analysis.

		3. Compare comparable sale properties with the subject property using the elements of comparison and adjust the price of each comparable to the subject property.

		4. Reconcile the various value indications produced by the analysis of the comparables.

REGIONAL SALES MARKET		The local market has been active in terms of investment sales of similar properties. Adequate sales exist to formulate a defensible value for the subject property via sales comparison.

PRESENTATION OF COMPARABLE SALES		To estimate the property value by the sales comparison approach, comparable sales from the influencing market that are most similar to the subject property in terms of age, size, tenant profile and location have been analyzed. The sales are compared on a price-per-unit basis, as this is a common method of comparison for such properties.

		The comparable sales summarized in the chart that follows and plotted on the following map, range in price from $86,735 to $111,469 per unit. While these unit prices implicitly contain both the physical and economic factors affecting real estate, these statistics do not explicitly convey many of the details surrounding a specific property. Thus, this single index to the valuation of the subject property has some limitations.

KTR Real Estate Advisors, LLC


Village of Pennbrook Apartments		June 8, 2011
Levittown, PA		Page 39


ANALYSIS OF SALES		The comparables are examined by considering the following adjustment factors.

*Property Rights Conveyed*		The interest being appraised is the Leased Fee Interest. All sales were sold for its Leased Fee Interest and no adjustment for property rights is required.

*Financing Terms*		The comparable sales were either all cash transactions or were financed by primary lenders at market-oriented rates. Considerate of such, no adjustments for any unusual or atypical financing is required.

*Conditions of Sale*		Adjustments for conditions of sale usually reflect the motivations of the buyer and the seller. We are not aware of any atypical circumstances regarding any of the comparable sales. Personal property is included as all facilities have similar unit appliances and miscellaneous office and common area FF&E.

Expenditures Made Immediately After Sale		Any required major capital costs incurred by the buyer immediately after the sale is appropriately added to the purchase price. None of the sales required any specific sale price adjustment other than what is included in general comparisons based on condition.

*Market Conditions*		Comparable sales that occurred under different market conditions than those applicable to the subject property as of the effective date of appraisal require adjustment for any differences that affect their values. The comparable sales occurred between November and December 2010. The market was relatively flat during 2008, however, property values decreased in September 2008 due to the problems associated with the credit market. The market continued to soften somewhat in 2009. In addition, 2010 has been considered relatively flat. As all of the sales occurred in 2010 no adjustments for market conditions have been processed.

*Location*		An adjustment for location is appropriate when the location characteristics of a comparable property are different from those of the subject. Adjustments have been made on an individual basis.

*Physical Characteristics*		Physical differences include differences in building size, quality of construction, building materials, age, condition, functional utility and appearance. Adjustments to the comparables have been applied on an individual basis.

*Average Unit Size*		The subject has an average unit size of 914 square feet. Properties with larger average unit sizes tend to trade at higher prices, all other factors being equal. Conversely, properties with smaller average unit sizes tend to trade at a lower price per unit. The average unit size of each comparable property is compared to the subject and applicable adjustments are applied when warranted.

KTR Real Estate Advisors, LLC


Village of Pennbrook Apartments		June 8, 2011
Levittown, PA		Page 44

COMPARABLE SALES ADJUSTMENT GRID


	Subject		Sale No. 1			Sale No. 2			Sale No. 3
Name	Village of Pennbrook Apts		Fox Run Apartments			ARK Rushwood			The Woods
Address	9071 Mill Creek Road		60 Fox Run Dr.			10825 E Keswick Road			1410 E Butler Pike
	Levittown, PA		Plainsboro, NJ			Philadelphia, PA			Ambler, PA
Sale Date			12/31/2010			11/8/2010			10/5/2010

Price per Unit		$	111,469		$	86,735		$	103,125

ADJUSTMENTS
Financing Adjustment		$	0		$	0		$	0

Adjusted for Financing per Unit		$	111,469		$	86,735		$	103,125
Conditions of Sale Adjustment		$	0		$	0		$	0

Adjusted for Special Conditions		$	111,469		$	86,735		$	103,125
Time			0.0	%		0.0	%		0.0	%

Time Adjusted Price per Unit		$	111,469		$	86,735		$	103,125

Location			-5	%		0	%		-5	%
Age/Condition/Quality			-10	%		5	%		-5	%
Average Unit Size			0	%		-5	%		5	%
Amenities			-5	%		5	%		0	%

Total Adjustments (%)			-20	%		5	%		-5	%

Adjusted Price per Unit		$	89,175		$	91,071		$	97,969


*VALUE CONCLUSION*		After analysis and adjustments, a value range of $89,175 to $97,969 per unit is indicated. Greatest reliance is given to Sale No. 2 as it required the least aggregate and net adjustments and is closer to the subject and a more current sale. This sale indicated a value of $91,071 per unit. Accordingly, a unit value of $91,000 per unit is concluded for the subject property.

		722 units x $91,000 per unit = $65,702,000

		Accordingly, the Market Value of the Leased Fee interest in the subject property as of June 1, 2011, free and clear of financing, via the Sales Comparison Approach, is rounded to:

SIXTY FIVE MILLION SEVEN HUNDRED THOUSAND DOLLARS
($65,700,000)

KTR Real Estate Advisors, LLC


Village of Pennbrook Apartments		June 8, 2011
Levittown, PA		Page 45

RECONCILIATION AND FINAL ESTIMATE OF VALUE


*Review*		The purpose of this appraisal is to provide an estimate of the market value of the leased fee interest in the subject property, free and clear of financing. The date of value is June 1, 2011. The indicated market value estimates for the real property interest appraised are:


Income Capitalization Approach	$	66,100,000
Sales Comparison Approach	$	65,700,000


*Income 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 true 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 good measure of value for this type of property and has been utilized as the primary approach in concluding to value.

*Sales Approach*		This approach provides an estimate of value based upon the recent activities of buyers and sellers in the marketplace. This approach is generally considered to be reliable in active markets where the motivations of buyers and sellers are known and the operating characteristics of the properties being transferred are available for scrutiny. Market research revealed adequate sales of properties that are considered comparable to the subject property. The value conclusion derived via this approach is considered directly supportive of that concluded via the Income Approach.

The Cost Approach Conclusions		The Cost Approach was excluded from the scope of this assignment. Both the Income Capitalization and Sales Comparison Approaches to value have been processed and suggest a market value between $65,700,000 and $66,100,000. Each approach has merit and similar limitations. As noted above, greatest reliance has been placed on the Income Capitalization Approach. Based on the data, analyses and conclusions contained within this appraisal report, the Market Value of the Leased Fee Interest in the subject property, free and clear of financing, as of June 1, 2011 is:

SIXTY SIX MILLION DOLLARS
($66,000,000)

EXTRAORDINARY ASSUMPTION

KTR Real Estate Advisors, LLC


Village of Pennbrook Apartments		June 8, 2011
Levittown, PA		Addenda

Report Name: P_OS_BudDet_Stnd
Application: _FinRep
Run Date: January 25, 2011 4:23:03

Standard Property Operating Statement Budget Detail
Scenario Budget Ledger: Actual Ledger
Entity: Entity Dept: NODEPT - No Dept
Prop008627 - Village of Pennbrook
For the 12 Months January - December Y2011


		User: DMcclure


	January			February			March			April			May			June			July			August			September			October			November			December			Annual Total
INCOME
p500000 - Market Rent		679,123			679,769			681,196			682,704			684,185			686,448			688,657			690,839			693,010			694,459			695,166			693,712			8,249,268
p512300 - Commercial Rent		9,474			9,674			9,674			9,674			9,674			9,674			9,674			9,674			9,674			9,674			9,724			9,724			115,991
p512400 - Straightline Rent Adjustment		(347	)		(147	)		(147	)		(178	)		(178	)		(178	)		(178	)		(178	)		(178	)		(178	)		(128	)		(128	)		(2,143	)

Non-Subsidized Rental Income		688,250			689,296			690,723			692,200			693,681			695,945			698,154			700,335			702,506			703,956			704,762			703,308			8,363,115

Gross Potential Rent		688,250			689,296			690,723			692,200			693,681			695,945			698,154			700,335			702,506			703,956			704,762			703,308			8,363,115

p522000 - Vacancy Loss		(27,165	)		(26,511	)		(25,885	)		(25,260	)		(28,052	)		(30,204	)		(33,056	)		(34,542	)		(22,176	)		(24,306	)		(25,721	)		(27,748	)		(330,626	)

Vacancy Loss		(27,165	)		(26,511	)		(25,885	)		(25,260	)		(28,052	)		(30,204	)		(33,056	)		(34,542	)		(22,176	)		(24,306	)		(25,721	)		(27,748	)		(330,626	)
p625002 - Concessions/Special Promotions		(4,584	)		(4,515	)		(4,504	)		(4,570	)		(4,587	)		(4,666	)		(4,687	)		(4,692	)		(4,786	)		(4,776	)		(4,751	)		(4,727	)		(55,845	)

Concessions		(4,584	)		(4,515	)		(4,504	)		(4,570	)		(4,587	)		(4,666	)		(4,687	)		(4,692	)		(4,786	)		(4,776	)		(4,751	)		(4,727	)		(55,845	)

Rental Losses		(31,749	)		(31,026	)		(30,389	)		(29,830	)		(32,639	)		(34,869	)		(37,743	)		(39,234	)		(26,962	)		(29,082	)		(30,472	)		(32,475	)		(386,471	)


Net Rental Income		656,501			658,269			660,334			662,370			661,043			661,075			660,411			661,101			675,544			674,873			674,290			670,833			7,976,644


p592001 - Late Charges		2,396			2,396			2,396			2,396			2,396			2,396			2,396			2,396			2,396			2,396			2,396			2,396			28,747

Late Charges		2,396			2,396			2,396			2,396			2,396			2,396			2,396			2,396			2,396			2,396			2,396			2,396			28,747
p599004 - Lease Cancellation Fees		14,269			14,269			14,269			14,269			14,269			14,269			14,269			14,269			14,269			14,269			14,269			14,269			171,222
p599014 - Contra Lease Cancellation Fees		(6,099	)		(6,099	)		(6,099	)		(6,099	)		(6,099	)		(6,099	)		(6,099	)		(6,099	)		(6,099	)		(6,099	)		(6,099	)		(6,099	)		(73,183	)

Lease Cancellation Fees		8,170			8,170			8,170			8,170			8,170			8,170			8,170			8,170			8,170			8,170			8,170			8,170			98,039
p500005 - Month to Month Fee		1,249			1,258			1,276			1,312			1,635			2,605			2,605			2,515			2,426			1,797			1,437			1,437			21,551
p517000 - Parking Income		1,010			1,221			1,431			1,642			1,852			2,063			2,273			2,484			2,527			2,527			2,527			2,527			24,084
p591003 - Recreational Facility Fees		6,294			6,294			6,294			6,294			6,294			6,294			6,294			6,294			6,294			6,294			6,294			6,294			75,533
p592002 - Nsf Charges		483			483			483			483			483			483			483			483			483			483			483			483			5,799
p592004 - Admin Fees - Resident Charges		23			23			23			23			23			23			23			23			23			23			23			23			273
p592006 - Keys, Locks, Lock Changes		86			86			86			86			86			86			86			86			86			86			86			86			1,033
p592007 - Transfer Fee		(79	)		(79	)		(79	)		(79	)		(79	)		(79	)		(79	)		(79	)		(79	)		(79	)		(79	)		(79	)		(945	)
p592009 - Miscellaneous Resident Charges		547			547			547			547			547			547			547			547			547			547			547			547			6,567
p592010 - Non Refundable Admin Fees		25			23			21			27			32			43			47			49			44			27			25			25			386
p593000 - Cleaning & Damage Fees		7,066			6,479			11,774			9,945			7,149			6,929			6,772			5,396			4,528			9,636			9,636			9,636			94,947
p593003 - Contra Cleaning and Damage		(3,600	)		(3,546	)		(5,346	)		(3,597	)		(3,126	)		(3,084	)		(2,715	)		(1,635	)		(937	)		(2,401	)		(2,401	)		(2,401	)		(34,790	)
p599002 - Legal Fees		3,550			1,377			2,272			2,170			1,914			1,425			986			1,253			4,508			4,508			4,508			4,503			32,980
p599003 - Non-refundable Pet Fees		1,903			1,903			1,903			1,903			2,015			1,679			1,343			1,343			3,481			3,481			3,481			3,481			27,916
p599005 - Application Fees		3,419			3,419			3,419			3,419			3,419			3,419			3,419			3,419			3,419			3,419			3,419			3,419			41,028
p599007 - Clubhouse Rentals		302			302			302			302			302			302			302			302			302			302			302			302			3,624
p599013 - Monthly Pet Rent		7,346			7,346			7,346			7,346			7,346			7,346			7,346			7,346			7,346			7,346			7,346			7,346			8,153
p599026 - Renters Insurance Service Fee		122			119			153			122			148			140			153			207			236			176			181			132			1,890
p625007 - Resident Relations Concessions		0			(82	)		(40	)		(265	)		0			0			(419	)		(2,159	)		(60	)		(60	)		(60	)		(60	)		(3,204	)

Other Misc Income		29,747			27,173			31,685			31,680			30,042			30,222			29,468			27,875			35,174			38,113			37,758			37,708			386,825

Miscellaneous Income		40,313			37,738			42,430			42,246			40,607			40,787			40,034			38,441			45,739			48,679			48,323			48,274			513,611
p590509 - Resident Util Pymts: Water/Swr		21,903			22,813			23,128			23,682			23,369			23,743			24,074			24,492			23,436			20,322			21,045			20,942			272,948
p590510 - Resident Util Pymts: Ntrl Gas		15,265			19,938			35,140			44,008			42,135			28,515			18,393			9,726			6,567			8,904			8,339			9,237			246,167
p590513 - Resident Util Pymts: Trash		925			1,165			1,404			1,644			1,884			2,124			2,363			2,363			2,363			2,363			2,363			2,363			23,324
p590514 - Resident Util Pymnts: Misc		4,332			4,332			4,332			4,332			4,332			4,332			4,332			4,332			4,332			4,332			4,332			4,332			51,982
p590530 - Resid Util Pymts: Accr Adjs		0			0			59,251			0			0			(63,073	)		0			0			(21,153	)		0			0			24,974			0

Utility Reimbursement		42,425			48,247			123,255			73,665			71,720			(4,359	)		49,162			40,913			15,546			35,921			36,078			61,848			594,421
p591000 - Laundry Income		4,625			4,625			4,625			4,625			4,625			4,625			4,625			4,625			4,625			4,625			4,625			4,625			55,500
p591008 - AS-Local Telephone		3,250			3,250			3,250			3,250			3,250			3,250			3,250			3,250			3,250			3,250			3,250			3,250			39,000
p591015 - Other Ancillary Programs		1,794			1,794			1,794			1,794			1,794			1,794			1,794			1,794			1,794			1,794			1,794			1,794			21,533

Ancillary Services Income		9,669			9,669			9,669			9,669			9,669			9,669			9,669			9,669			9,669			9,669			9,669			9,669			116,033

Other Rental Income		92,407			95,654			175,355			125,580			121,997			46,098			98,865			89,024			70,954			94,269			94,071			119,791			1,224,064

p637000 - Bad Debt Expense		(11,908	)		(12,706	)		(13,793	)		(12,910	)		(9,882	)		(7,848	)		(9,626	)		(9,509	)		(8,661	)		(9,795	)		(9,827	)		(10,884	)		(127,349	)

Bad Debt Expense		(11,908	)		(12,706	)		(13,793	)		(12,910	)		(9,882	)		(7,848	)		(9,626	)		(9,509	)		(8,661	)		(9,795	)		(9,827	)		(10,884	)		(127,349	)


Effective Gross Income		737,001			741,217			821,895			775,040			773,158			699,325			749,650			740,615			737,838			759,348			758,534			779,739			9,073,359


OPERATING EXPENSES
p633000 - Salaries - Manager		5,690			5,140			5,690			5,507			5,690			5,507			5,796			5,796			5,609			5,796			5,609			5,796			57,623

Salaries - Managers		5,690			5,140			5,690			5,507			5,690			5,507			5,796			5,796			5,609			5,796			5,609			5,796			67,623

KTR Real Estate Advisors, LLC

Page 1 of 6


Village of Pennbrook Apartments		June 8, 2011
Levittown, PA		Addenda



Report Name: P_OS_BudDet_Stnd Application: _FinRep Run Date: January 25, 2011 4:23:03	Standard Property Operating Statement Budget Detail Scenario: Budget Ledger: Actual Ledger Entity: Entity Dept: NODEPT - No Dept Prop 008627 - Village of Pennbrook For the 12 Months January - December Y2011	User: DMcclure


	January			February			March			April			May			June			July			August			September			October			November			December			Annual Total
p621000 - Leasing Payroll		10,216			9,227			10,216			9,886			10,522			10,183			10,717			10,717			10,371			10,717			10,069			10,405			123,246

Salaries - Leasing		10,216			9,227			10,216			9,886			10,522			10,183			10,717			10,717			10,371			10,717			10,069			10,405			123,246

p631000 - Salaries-Administrative		3,620			3,269			3,620			3,503			3,620			3,503			3,687			3,687			3,568			3,687			3,568			3,687			43,016
p651000 - Cleaning Payroll		5,113			4,618			5,113			4,804			5,212			5,195			5,468			5,468			5,292			5,309			5,137			5,309			62,038
p654000 - Salaries - Maintenance		26,970			24,360			26,970			25,484			27,395			27,159			28,583			28,583			27,661			27,902			27,002			27,902			325,970
p659500 - Outsourced Services		1,060			1,131			1,144			1,049			1,056			1,182			1,056			1,077			1,174			1,061			1,027			1,125			13,144
p659800 - Payroll Adjustment		(1,124	)		(1,124	)		(1,124	)		(1,124	)		(1,124	)		(1,124	)		(1,124	)		(1,124	)		(1,160	)		(1,160	)		(1,160	)		(1,160	)		(13,627	)

Salaries Other		35,639			32,255			35,723			33,716			36,160			35,916			37,670			37,691			36,535			36,798			35,575			36,863			430,540

Salaries		51,546			46,622			51,629			49,109			52,372			51,605			54,183			54,204			52,515			53,311			51,252			53,063			621,410
p612501 - Employee Benefits		817			0			0			0			0			0			0			0			0			0			0			0			817
p659814 - Payroll Tax Expense Adj		(117	)		(117	)		(117	)		(117	)		(117	)		(117	)		(117	)		(117	)		(121	)		(121	)		(121	)		(121	)		(1,417	)
p671100 - Payroll Taxes		8,402			7,176			6,457			4,060			6,386			6,310			5,515			4,160			4,016			4,086			3,931			4,062			64,560
p671101 - Office Payroll Tax		1,300			0			0			1,300			0			0			1,300			0			0			1,300			0			0			5,200
p671107 - Payroll OH / Union Benefits		6,959			6,959			6,959			6,959			6,959			6,959			6,959			6,959			6,959			6,959			6,959			6,959			83,505
p672200 - Workers Compensation		3,097			2,797			3,097			2,954			3,146			3,089			3,251			3,251			3,146			3,204			3,081			3,184			37,298
p672300 - Health Ins. & Oth Benefits		3,772			3,722			3,772			3,755			3,778			3,761			3,783			3,788			3,771			3,788			3,764			3,731			45,239
p672301 - Benefits Expense Adjustment		(152	)		(152	)		(152	)		(152	)		(152	)		(152	)		(152	)		(152	)		(157	)		(157	)		(157	)		(157	)		(1,840	)

Payroll Taxes & Benefits - Property		24,077			20,385			20,015			18,759			20,000			19,851			20,544			17,889			17,615			19,059			17,458			17,708			233,361
p627700 - Leasing Comm - Amortizable		1,803			1,808			1,814			1,819			1,816			1,816			1,814			1,816			1,855			1,854			1,852			1,842			21,908
p627701 - Amortization on Leasing Comm		237			237			237			237			237			237			237			237			237			237			237			237			2,848
p627800 - Renewal Incent - Amortizable		41			75			94			94			39			42			42			42			42			42			42			42			637

Leasing Commissions Comp		2,081			2,121			2,145			2,151			2,092			2,095			2,093			2,095			2,135			2,133			2,131			2,122			25,393
p831001 - Ranking Bonus		7,631			6,892			7,631			7,340			7,784			7,579			7,977			7,977			7,719			7,928			7,551			7,803			91,811
p831002 - Ranking Bonus - Adjust.		(3,230	)		(2,918	)		(3,230	)		(3,107	)		(3,295	)		(3,208	)		(3,377	)		(3,377	)		(3,268	)		(3,356	)		(3,197	)		(3,303	)		(38,866	)

Bonus -Property		4,400			3,975			4,400			4,233			4,489			4,371			4,600			4,600			4,451			4,572			4,355			4,500			52,945
p6599000 - Repairs Payroll Capitalized		(6,523	)		(5,846	)		(6,231	)		(5,927	)		(6,284	)		(6,211	)		(6,471	)		(6,272	)		(6,120	)		(6,293	)		(5,999	)		(6,172	)		(74,348	)

Capitalized Payroll -Property		(6,523	)		(5,846	)		(6,231	)		(5,927	)		(6,284	)		(6,211	)		(6,471	)		(6,272	)		(6,120	)		(6,293	)		{5,999	)		(6,172	)		(74,348	)
p627200 - Miscellaneous Incentives		1,000			1,030			1,030			1,030			1,030			1,030			1,030			1,030			1,030			1,030			1,030			1,030			12,330
p627600 - Quarterly Special Incentive		507			567			551			474			474			547			482			482			556			482			482			564			6,167
p633100 - Employee Apartments		2,040			2,040			2,040			2,040			2,040			2,040			2,040			2,040			2,040			2,040			2,040			2,040			24,477
p916010 - Amortization - Lease Commissio		237			237			237			237			237			237			237			237			237			237			237			237			2,848

Other Personnel Costs - Property		3,784			3,874			3,858			3,781			3,781			3,854			3,789			3,789			3,863			3,789			3,789			3,871			45,822

Payroll Expense		79,366			71,130			75,817			72,107			76,451			75,565			78,737			76,304			74,458			76,570			72,986			75,091			904,583


Personnel Exp - Property		79,366			71,130			75,817			72,107			76,451			75,565			78,737			76,304			74,458			76,570			72,986			75,091			904,583

p645203 - Gas - List Bills		36,712			47,639			43,040			32,532			21,001			14,342			10,149			10,569			10,076			16,085			16,963			22,812			276,921

Utilities -Gas		36,712			47,639			43,040			32,532			21,001			14,342			10,149			10,569			10,076			11,085			16,963			22,812			276,921
p645001 - Electricity - Vacant		1,219			818			759			703			743			1,258			2,596			4,463			4,223			2,142			1,548			857			21,329
p645003 - Electricity - List Bills		8,499			9,199			7,450			7,220			6,907			9,474			9,331			14,959			11,015			8,004			7,692			5,395			105,143

Utilities - Elec		9,718			10,017			8,209			7,923			7,650			10,732			11,927			19,421			15,238			10,146			9,240			6.252			126,472
p645100 - Water		13,269			13,376			12,980			16,359			14,846			14,300			14,855			15,026			12,961			11,700			19,201			14,112			172,984
p645300 - Sewer		22,845			22,906			20,900			29,650			25,454			23,100			26,363			26,650			22,928			19,800			15,661			7,444			263,702

Utilities -Water/Sewer		36,114			36,282			33,880			46,009			40,299			37,400			41,217			41,676			35,890			31,500			34,862			21,557			436,686
p647001 - Utility Processing Fees		3,426			3,426			3,426			3,426			3,426			3,425			3,426			3,426			3,426			3,426			3,426			3,426			41,110
p649000 - Misc Utility Charges		288			288			288			288			288			288			288			288			288			288			288			288			3,460

Utilities -Other		3,714			3,714			3,714			3,714			3,714			3,714			3,714			3,714			3,714			3,714			3,714			3,714			44,570

Utilities Expenses		86,258			97,652			88,843			90,178			72,664			66,188			67,008			75,381			64,918			56,446			64,778			54,335			884,649
p626002 - Washer/Dryer Rental		163			186			154			256			304			251			251			251			251			251			251			251			2,823
p626003 - Appliance Rental Expense		0			0			0			(585	)		(585	)		(585	)		(585	)		(585	)		(585	)		(585	)		(585	)		(585	)		(5,263	)
p651900 - Contract Exterminating		1,446			1,446			1,446			1,446			1,446			1,446			1,446			1,446			1,446			1,446			1,446			1,446			17,350
p652500 - Contract Trash Removal		4,286			4,286			4,236			4,286			4,286			4,236			4,286			4,286			4,286			4,286			4,286			4,236			51,434
p653004 - Contract Alarm System		914			914			914			914			914			914			914			914			914			914			914			914			10,967
p653005 - Alarm Repair		153			153			153			153			153			153			153			153			153			153			153			153			1,841
p653700 - Contract Yards And Grounds		0			0			0			9,752			9,752			9,752			9,752			9,752			9,752			9,752			9,752			0			78,016
p654200 - Contract Repairs		0			0			0			0			0			0			0			0			0			85			85			85			255
p654230 - Contract Security		48			48			48			48			48			48			48			48			48			48			48			48			575
p654302 - Etectrical - Contract		325			325			400			325			325			400			325			325			400			325			325			400			4,200
p654402 - Plumbing Contract		841			841			1,041			841			841			1,041			841			841			1,041			841			841			1,041			10,896
p654602 - Contract Hvac		764			764			764			764			764			764			764			764			764			764			764			764			9,167
p654702 - Pool Contract		0			0			0			4,500			4,500			4500			4,500			4,500			4500			0			0			0			27,000

KTR Real Estate Advisors, LLC

Page 2 of 6


Village of Pennbrook Apartments		June 8, 2011
Levittown, PA		Addenda


Report Name: P_OS_BudDet_Stnd Application: _FinRep Run Date: January 25, 2011 4:23:03		Standard Property Operating Statement Budget Detail Scenario: Budget Ledger: Actual Ledger Entity: Entity Dept: NODEPT - No Dept Prop008627 - Village of Pennbrook For the 12 Months January - December Y2011		User: DMcclure


	January			February			March			April			May			June			July			August			September			October			November			December			Annual Total

p654800 - Snow Removal		5,691			5,691			3,794			0			0			0			0			0			0			0			5,250			7,500			27,925

Contract Services		14,631			14,655			13,000			22,701			22,749			22,971			22,696			22,696			22,971			18,281			23,531			16,304			237,186

p651700 - Contract Cleaning		681			341			511			545			715			613			613			885			647			920			783			988			8,242
p656002 - Contract Carpet Cleaning & Dye		1,115			558			837			892			1,171			1,004			1,004			1,450			1,060			1,506			1,283			1,617			13,496
p655003 - Contract Painting-Interior		9,440			4,720			7,080			7,552			9,912			8,496			8,496			12,272			8,968			12,744			10,856			13,688			114,224
p656101 - Drapery/Miniblinds Repairs		27			27			27			27			27			27			27			27			27			27			27			27			325
p656102 - Painting Supplies		2,299			1,149			1,724			1,839			2,414			2,069			2,069			2,989			2,184			3,104			2,644			3,334			27,818
p656104 - Wallpaper		16			16			16			16			16			16			16			16			16			16			16			16			190
p656107 - Resurface Kitchen & Bath		933			933			933			933			933			933			933			933			933			933			933			933			11,190

Turnover Expense		14,511			7,743			11,127			11,804			15,188			13,157			13,157			18,572			13,834			19,248			16,541			20,602			175,485

p651500 - Cleaning Supplies		677			677			677			677			677			677			677			677			677			677			677			677			8,121
p652000 - Exterminating Suppl		27			27			27			27			27			27			27			27			27			27			27			27			321
p653600 - Landscaping Supplies		334			334			334			334			334			334			334			334			334			334			334			334			4,004
p654101 - Electrical Supplies		698			698			698			698			698			698			698			698			698			698			698			698			8,378
p654102 - Plumbing Supplies		1,220			1,220			1,220			1,220			1,220			1,220			1,220			1,220			1,220			1,220			1,220			1,220			14,645
p654103 - Appliance Parts		489			489			489			489			489			489			489			489			489			489			489			489			5,864

Repairs & Maint - Supplies		3,444			3,444			3,444			3,444			3,444			3,444			3,444			3,444			3,444			3,444			3,444			3,444			41,333
p654104 - Equipment Rental/Repair		48			48			48			48			48			48			48			48			48			48			48			48			581
p654110 - Laundry Equipment & Supplies		148			148			148			148			148			148			148			148			148			148			148			148			1,778
p654601 - Hvac Parts & Supplies		931			888			838			1,117			1,490			1,645			1,769			1,769			1,490			1,055			962			962			14,915
p654603 - Boiler Parts & Supplies		77			77			77			77			77			77			77			77			77			77			81			62			915
p657000 - Equipment/Vehicle Expense		156			156			612			162			162			612			162			162			612			162			170			612			3,740
p659001 - Fire Protection Equip Maint		316			316			316			316			316			316			316			316			316			316			316			316			3,794

Repairs & Maint - Equipment		1,677			1,633			2,040			1,869			2,242			2,847			2,521			2,521			2,692			1,807			1,725			2,148			25,722
p654100 - Repairs/Maint. Materials		3			3			3			3			3			3			3			3			3			3			3			3			39
p654199 - Other Maintenance Materials		251			251			251			251			251			251			251			251			251			251			251			251			3,010

Repairs & Maint - Materials		254			254			254			254			254			254			254			254			254			254			254			254			3,049
p654205 - Interior Building Improvements		871			871			871			871			871			871			871			871			871			871			871			871			10,458
p654206 - Exterior Building Improvements		676			676			676			676			676			676			676			676			676			676			676			676			8,114
p656000 - parking Lot Cleaning & Maint		74			74			74			74			74			74			74			74			74			74			74			74			885

Repairs & Maint - Building		1,621			1,621			1,621			1,621			1,621			1,621			1,621			1,621			1,621			1,621			1,621			1,621			19,456
p654125 - Water Extraction		338			338			338			338			338			338			338			338			338			338			338			338			4,053
p612800 - Irrigation Maint		0			0			0			0			0			300			0			0			0			0			0			0			300
p617600 - Window & Glass Repair		80		80				80			80			80			80			80			80			80			80			80			80			958
p652300 - Gas/Oil/Mileage		282			282			282			282			282			282			282			282			282			282			282			282			3,379
p654105 - Plumbing Fixtures/Repairs		1,048			1,048			1,048			1,048			1,048			1,048			1,048			1,048			1,048			1,048			1,048			1,048			12,571
p654109 - Window Replacement		61			61			61			61			61			61			61			61			61			61			61			61			738
p654120 - Keys and Locks		351			351			351			351			351			351			351			351			351			351			351			351			4,210
p654201 - Roof Repairs		606			606			606			606			606			606			606			606			606			606			606			606			7,268
p654209 - Sewer Repairs		5			5			5			5			5			5			5			5			5			5			5			5			55
P654500 - Elevator Expense		36			36			36			36			36			36			36			36			36			36			36			36			432
p654802 - Maintenance Expense		454			454			454			454			454			454			454			454			454			454			454			454			5,442
p654903 - Doors		11			11			11			11			11			11			11			11			11			11			11			11			131
p655200 - R&M Rebate - MRO		(117	)		(117	)		(117	)		(117	)		(117	)		(117	)		(117	)		(117	)		(117	)		(117	)		(117	)		(117	)		(1,402	)
p655201 - R&M Rebate - Other		(76	)		(76	)		(76	)		(76	)		(76	)		(76	)		(76	)		(76	)		(76	)		(76	)		(76	)		(76	)		(913	)
p656005 - Light Bulbs		420			420			420			420			420			420			420			420			420			420			420			420			5,039
p656300 - Misc.		0			0			0			0			0			0			0			0			0			0			0			0			3
p656302 - Repair & Maintenance - REAC		21			21			21			21			21			21			21			21			21			21			21			21			250

Repairs & Maint - Other		3,518			3,518			3,518			3,518			3,518			3,518			3,518			3,518			3,518			3,518			3,518			3.518			42,515
p654700 - Pool Expense		0			0			0			0			250			250			250			250			0			0			0			0			1,000
p656301 - Spa-Miscellaneous		5			5			5			5			5			5			5			5			5			5			6			4			64

Repairs & Maint - Spa		5			5			5			5			255			255			255			255			5			5			6			4			1,064

Repairs & Maintenance		10,520			10,476			10,883			10,712			11,335			12,240			11,614			11,614			11,535			10,650			10,569			10,990			133,139

p610040 - Recreational Equipment		15			15			15			15			15			15			15			15			15			15			15			15			179
p615600 - Fire Protection		320			320			320			320			320			320			320			320			320			320			320			320			3,841
p619300 - Lease - Equipment		45			45			45			45			45			45			45			45			45			45			45			45			541

Common Area Expense		380			380			380			380			380			380			380			380			380			380			380			380			4,560

p621020 - National Web Advertising		2,973			2,973			3,126			3,126			3,126			3,126			3,126			3,126			3,126			3,126			3,126			3,126			37,211

KTR Real Estate Advisors, LLC

Page 3 of 6



Village of Pennbrook Apartments Levittown, PA		June 8, 2011 Addenda



Report Name: P_OS_BudDet_Stnd Application: _FinRep Run Date: January 25, 2011 4:23:03	Standard Property Operating Statement Budget Detail Scenario: Budget Ledger: Actual Ledger Entity: Entity Dept: NODEPT - No Dept Prop008627 - Village of Pennbrook For the 12 Months January - December Y2011	User: DMcclure


	January		February			March			April		May		June		July			August			September		October		November		December		Annual Total
p621021 - AIMCO Web Site		1,142		1,199			1,265			942		937		1,210		1,070			1,070			1.220		960		1,176		1,157		13,345
p621025 - Contact Center Web Sales		268		268			268			268		268		268		268			268			268		269		268		268		3,213
p621030 - National Print/Periodical Ad		917		917			305			305		305		305		305			305			305		305		305		305		4,884

Mktg - Advertising		5,300		5,357			4,964			4,641		4,636		4,909		4,769			4,769			4,920		4,659		4,874		4,856		58,653
p625008 - Resident Referral Concessions		122		128			138			205		74		52		155			156			260		154		154		103		1,701
p625012 - Referral Fee Amortization		566		(215	)		(503	)		1,135		25		301		(605	)		(1,143	)		558		475		700		375		1,670
p625025 - Local Locator Fees		400		400			600			400		400		600		400			400			600		400		400		600		5,600

Mktg - Apart Brokers		1,087		313			235			1,740		499		953		(50	)		(586	)		1,419		1,029		1,254		1,077		8,970
p621007 - Brochures - New Leases		0		2,389			0			0		0		380		0			0			0		100		0		0		2,869
p621013 - Leasing Promotions		35		35			35			35		35		35		35			35			35		35		35		35		421
p625000 - Signage		0		0			150			0		6,000		150		0			0			150		0		0		150		6,600

Mktg - Point of Sale		35		2,424			185			35		6,035		565		35			35			185		135		35		185		9,891
p621014 - Newsletters		145		152			165			163		59		123		123			124			124		122		122		122		1,543
p621050 - Renewal/Resident Gift Expense		60		60			60			60		60		60		60			60			60		60		60		60		720
p625101 - Resident Functions		27		27			27			27		27		27		27			27			27		27		27		27		325

Mktg - Retention		232		239			252			250		146		210		210			211			211		209		209		209		2,589

Marketing Expenses		6,655		8,333			5,636			6,666		11,316		6,637		4,965			4,429			6,735		6,032		6,372		6,328		80,103

p629002 - Phone Sales		2,948		2,667			2,947			2,739		3,025		3,290		3,122			3,019			3,033		2,621		2,536		2,743		34,689
p636000 - Wired Telco Services		2,014		2,014			2,014			2,014		2,014		2,014		2,014			2,014			2,014		2,014		2,014		2,014		24,173

Telephone Expense		4,962		4,681			4,961			4,753		5,039		5,304		5,137			5,033			5,047		4,635		4,551		4,758		58,862
p631100 - Office Supplies		720		720			720			720		720		720		720			720			720		720		720		720		8,634
p631101 - Office Equipment		250		250			250			250		250		250		250			250			250		250		250		250		2,995
p639005 - Furniture Exp (Office/Clubh)		83		83			83			83		83		83		83			83			83		83		83		83		995

Office Exp - Property		1,052		1,052			1,052			1,052		1,052		1,052		1,052			1,052			1,052		1,052		1,052		1,052		12,624
p631104 - Applicant Screening		1,302		1,643			1,333			1,054		1,085		1,054		1,271			1,364			1,612		1,519		2,108		1,922		17,267
p631108 - Credit Card Service Fees		148		148			148			148		148		148		148			148			148		148		148		148		1,782

Credit Expense		1,450		1,791			1,481			1,202		1,233		1,202		1,419			1,512			1,760		1,667		2,256		2,070		19,049
p632500 - Professional Fees		1,348		1,348			1,348			181		181		181		181			181			181		181		181		181		5,672
p632800 - Administrative Support - Fees		176		197			191			165		165		189		167			167			192		167		167		195		2,140
p634000 - Legal Fees		1,224		1,224			1,224			1,224		1,224		1,224		1,224			1,224			1,224		1,224		1,224		1,224		14,687

Professional Fees		2,748		2,769			2,763			1,570		1,570		1,594		1,572			1,572			1,597		1,572		1,572		1,600		22,499
p639004 - Computer Maint & Supplies		341		341			341			341		341		341		5,359			5,359			5,359		5,359		5,359		5,359		34,201
p656007 - Compliance Fees		105		105			105			105		105		105		105			105			105		105		105		105		1,260

Computer Expense		446		446			446			446		446		446		5,464			5,464			5,464		5,464		5,464		5,464		35,461
p639011 - Training Materials		23		23			23			23		23		23		23			23			23		23		23		23		273
p639015 - Corporate L & OD Charges		406		406			406			406		406		406		406			406			406		406		406		406		4,875
p639020 - Meeting Costs		59		59			59			59		59		59		59			59			59		59		59		59		706
p639025 - Third Party Training Costs		13		13			13			13		13		13		13			13			13		13		13		13		155
p639030 - Travel Costs - Training		252		252			252			252		252		252		1,729			1,729			1,673		1,673		1,673		1,673		11,660
p639031 - Travel Costs - Other		523		523			523			523		523		523		523			523			523		523		523		523		6,271

Training and Travel		1,275		1,275			1,275			1,275		1,275		1,275		2,753			2,753			2,696		2,696		2,696		2,696		23,941
p617104 - Radios/Pagers		200		200			200			200		200		200		200			200			200		200		200		200		2,400
p629001 - Dues And Subscriptions		85		85			85			85		85		85		85			85			85		85		85		85		1,017
p631102 - Bank Charges		60		60			60			60		60		60		60			60			60		60		60		60		715
p631105 - Uniforms		277		277			277			277		277		277		277			277			277		277		277		277		3,328
p631106 - Express Mail, Stamps		510		510			510			510		510		510		510			510			510		510		510		510		6,123
p631111 - Resident Eviction/Separation		1,781		1,781			1,781			1,781		1,781		1,781		1,781			1,781			1,781		1,781		1,781		1,781		21,374
p632525 - H/R-Personnel Costs		512		512			512			512		512		512		512			512			512		512		512		512		6,147
p632918 - Answering Service		349		349			349			349		349		349		349			349			349		349		349		349		4,184
p633400 - Temp Agency Help		2,507		2,147			3,449			2,190		5,513		1,883		3,220			771			3,444		0		0		0		25,125
p639006 - Parking Expense		37		37			37			37		37		37		37			37			37		37		37		37		444
p639099 - Miscellaneous Administrative		264		264			264			264		264		264		264			264			264		264		264		264		3,172
p655100 - Residnt Pmt Platform		328		328			328			328		328		328		328			328			328		328		328		328		3,940

Admin Exp - Other		6,911		6,551			7,853			6,593		9,917		6,287		7,624			5,175			7,847		4,404		4,404		4,404		77,970


Admin Expenses		18,844		18,566			19,831			16,892		20,532		17,161		25,022			22,562			25,465		21,491		21,996		22,045		250,406


Controllable Operating Expenses		231,164		228,935			225,518			231,440		230,614		214,299		223,579			231,938			220,297		209,099		217,153		206,075		2,670,110

KTR Real Estate Advisors, LLC

Page 4 of 6



Village of Pennbrook Apartments Levittown, PA		June 8, 2011 Addenda



Report Name: P_OS_BudDet_Stnd Application: _FinRep Run Date: January 25, 2011 4:23:03	Standard Property Operating Statement Budget Detail Scenario: Budget Ledger: Actual Ledger Entity: Entity Dept: NODEPT - No Dept Prop008627 - Village of Pennbrook For the 12 Months January - December Y2011	User: DMcclure


	January			February			March			April			May			June			July			August			September			October			November			December			Annual Total
Controllable Net Op Inc		505,837			512,282			596,377			543,600			542,544			485,026			526,071			508,677			517,541			550,249			541,381			573,664			6,403,249


PROP OPS EXP - TAXES & INSURANCE
p671001 - Real Estate Taxes		65,909			65,909			65,909			65,909			65,909			65,909			65,909			65,909			65,909			65,909			65,909			65,909			790,903
p671002 - Personal Property Tax		0			0			164			130			71			0			0			583			0			0			0			0			948

Real Estate & Pers Prop Tax		65,909			65,909			66,072			66,038			65,980			65,909			65,909			66,492			65,909			65,909			65,909			65,909			791,851
p671902 - Sales And Use Tax		118			0			0			131			0			0			0			0			0			48			0			0			298

Other Taxes & Fees - Prop		118			0			0			131			0			0			0			0			0			48			0			0			298
p672000 - Hazard Insurance		10,589			10,589			10,324			10,324			10,324			10,324			10,324			10.324			10,324			10,324			10,324			10,324			124,415
p672500 - General Liability Insurance		5,791			5,791			5,791			5,791			5,791			5,791			5,791			5,791			5,791			6,081			6,081			6,081			70,361

Net Hazard & GL Ins Premium		16,380			16,380			16,115			16,115			16,115			16,115			16,115			16,115			16,115			16,404			16,404			16,404			194,776
p672100 - Crime/Fidelity Insurance		180			180			180			180			180			180			180			180			180			189			189			189			2,182
p672900 - Umbrella Auto Flood & Other		1,428			1,428			1,428			1,428			1,428			1,428			1,428			1,428			1,428			1,471			1,471			1,471			17,267

Insurance - Prop		1,608			1,608			1,608			1,608			1,608			1,608			1,608			1,608			1,608			1,659			1,659			1,659			19,449

Taxes & Insurance		84,014			83,896			83,795			83,892			83,703			83,631			83,631			84,215			83,631			84,021			83,972			83,972			1,006,374

OTH NON-CONTROLLABLE OPERATING EXP
p632000 - Management Fees		36,867			37,068			41,102			38,761			38,667			34,975			37,491			37,040			36,901			37,976			37,933			38,993			453,774

420 - Prop Mgmt Exp - Consol		36,867			37,068			41,102			38,761			38,667			34,975			37,491			37,040			36,901			37,976			37,933			38,993			453,774
p615700 - Environmental Expenses		417			417			417			417			417			417			417			417			417			417			417			417			5,000

Noncontrollable - Property Upgrades		417			417			417			417			417			417			417			417			417			417			417			417			5,000


Management, Acctg & Oth Fees		37,284			37,485			41,519			39,177			39,083			35,392			37,908			37,456			37,317			38,393			38,350			39,410			458,774


Property Net Operating Income		384,539			390,901			471,063			420,530			419,758			366,003			404,532			387.007			396,592			427,835			419,059			450,282			4,938,101


p662000 - Deprec. - Buildings		45,075			45,075			45,075			45,075			45.075			45,075			42,051			42,051			42,051			42,051			42,051			42,051			522,755
p665000 - Deprec. - Furnishings		63,797			63,381			63,209			63,029			63,103			62,668			61,429			59.626			58,206			58,037			58,255			58,033			732,773
p666500 - Deprec. - Tenant Improvements		2,010			2,010			2,010			1,965			1,920			1,920			1,920			1,920			1,920			1,920			1,920			1,920			23,354

Property Depr & Amortization		110,882			110,466			110,295			110,069			110,098			109,663			105,399			103.597			102,176			102,008			102,226			102,003			1,278,881
p669510 - Deprec. - Non RE Assets		796			796			796			796			796			795			891			870			868			861			854			824			9,943

Prop Depr Exp-Non RE Assets		796			796			796			796			796			795			891			870			868			861			854			824			9,943


Noncontrollable Operating Exp		232,976			232,643			236,404			233,935			233,680			229,481			227,830			226,137			223,993			225,282			225,402			226,209			2,753,972



Total Operating Expenses		464,140			461,578			461,922			465,375			464,294			443,780			451,408			458,075			444,290			434,381			442,555			432,284			5,424,082



Operating Income		272,861			279,639			359,973			309,665			308,864			255,545			298,242			282,540			293,548			324,967			315,979			347,455			3,649,277

NON-OPERATING INCOME (EXPENSES)
p546000 - GR Conc Interest Income		29			29			29			29			29			29			29			29			29			29			29			29			343
p639001 - Security Deposit Interest		(8	)		(8	)		(8	)		(8	)		(8	)		(8	)		(8	)		(8	)		(8	)		(8	)		(8	)		(8	)		(92	)

720 - Prop Interest Inc		21			21			21			21			21			21			21			21			21			21			21			21			251

p682001 - Int Exp. Secured Fixed 1st		(147,448	)		(147,278	)		(147,106	)		(146,934	)		(146,760	)		(146,585	)		(146,410	)		(146,233	)		(146,055	)		(145,877	)		(145,697	)		(145,516	)		(1,757,899	)
P682002 - Int Exp. Secured Fixed 2nd		(68,626	)		(68,554	)		(68,483	)		(68,411	)		(68,339	)		(68,267	)		(68,194	)		(68,120	)		(68,047	)		(67,973	)		(67,898	)		(67,823	)		(818,734	)
P682003 - Interest Exp. Sec. Fixed 3rd		(53,583	)		(53,525	)		(53,468	)		(53,410	)		(53,352	)		(53,294	)		(53,235	)		(53,176	)		(53,117	)		(53,057	)		(52,997	)		(52,936	)		(639,149	)

800 - Prop Interest Exp - Mortgages		(269,656	)		(269,358	)		(269,057	)		(268,755	)		(268,451	)		(268,146	)		(267,838	)		(267,529	)		(267,218	)		(266,906	)		(266,592	)		(266,276	)		(3,215,782	)
p839017 - Interest Expense - OTEF Loan		14			14			14			14			14			14			14			14			14			14			14			14			164
p916003 - Amort DLC 1st		(3,594	)		(3,594	)		(3,594	)		(3,594	)		(3,594	)		(3,594	)		(3,594	)		(3,594	)		(3,594	)		(3,594	)		(3,594	)		(3,594	)		(43,127	)
p916023 - Amort DLC - Other		(1,693	)		(1,693	)		(1,693	)		(1,693	)		(1,693	)		(1,693	)		(1,693	)		(1,693	)		(1,693	)		(1,693	)		(1,693	)		(1,693	)		(20,311	)

805 - Prop Interest Exp - Amort of Def Loan Costs		(5,273	)		(5,273	)		(5,273	)		(5,273	)		(5,273	)		(5,273	)		(5,273	)		(5,273	)		(5,273	)		(5,273	)		(5,273	)		(5,273	)		(63,273	)

Prop Int Exp, Net of Cap Int		(274,929	)		(274,630	)		(274,330	)		(274,028	)		(273,724	)		(273,418	)		(273,111	)		(272,802	)		(272,491	)		(272,179	)		(271,864	)		(271,548	)		(3,279,055	)


Total Non-Operating Inc(Exp)		(274,908	)		(274,610	)		(274,309	)		(274,007	)		(273,703	)		(273,397	)		(273,090	)		(272,781	)		(272,470	)		(272,158	)		(271,843	)		(271,527	)		(3,278,804	)



Property Net Income (Loss)		(2,047	)		5,029			85,664			35,658			35,161			(17,853	)		25,152			9,759			21,077			52,809			44,135			75,928			370,472

KTR Real Estate Advisors, LLC

Page 5 of 6



Village of Pennbrook Apartments		June 8, 2011
Levittown, PA		Addenda


Report Name: P_OS_BudDet_Stnd	Standard Property Operating Statement Budget Detail	User: DMcclure
Application: _FinRep	Scenario: Budget Ledger: Actual Ledger
Run Date: January 25, 2011 4:23:03	Entity: Entity Dept: NODEPT - No Dept
	Prop008627 - Village of Pennbrook
	For the 12 Months January - December Y2011


	January			February			March			April			May			June			July			August			September			October			November			December			Annual Total
CHANGE IN ASSETS
p149425 - CI GP Supervision Fees		(1,130	)		(752	)		(875	)		(813	)		(1,025	)		(907	)		(1,103	)		(872	)		(1,148	)		(1,044	)		(1,323	)		(982	)		(11,973	)

GP Fees CI		(1,130	)		(752	)		(875	)		(813	)		(1,025	)		(907	)		(1,103	)		(872	)		(1,148	)		(1,044	)		(1,323	)		(982	)		(11,973	)
p179999 - Capital Improvement Allocation		(9,111	)		(6,560	)		(7,335	)		(6,708	)		(8,064	)		(7,266	)		(8,730	)		(6,958	)		(9,069	)		(8,168	)		(10,162	)		(7,639	)		(95,772	)

Allocations CI		(9,111	)		(6,560	)		(7,335	)		(6,708	)		(8,064	)		(7,266	)		(8,730	)		(6,958	)		(9,069	)		(8,168	)		(10,162	)		(7,639	)		(95,772	)

Capital Improv Alloc		(10,241	)		(7,312	)		(8,210	)		(7,521	)		(9,089	)		(8,173	)		(9,833	)		(7,830	)		(10,217	)		(9,212	)		(11,486	)		(8,621	)		(107,745	)
p143005 - Plumbing Fixtures		(440	)		(220	)		(330	)		(352	)		(462	)		(396	)		(396	)		(572	)		(418	)		(594	)		(506	)		(638	)		(5,324	)
p145699 - Cabinets		(400	)		(200	)		(300	)		(320	)		(420	)		(360	)		(360	)		(520	)		(380	)		(540	)		(460	)		(580	)		(4,840	)
p146503 - Refrigerators		(2,300	)		(1,081	)		(1,622	)		(1,730	)		(2,270	)		(1,946	)		(1,946	)		(2,811	)		(2,054	)		(2,919	)		(2,486	)		(3,135	)		(26,298	)
p146601 - Carpet - Unit		(7,920	)		(3,960	)		(5,940	)		(6,336	)		(8,316	)		(7,128	)		(7,128	)		(10,296	)		(7,524	)		(10,692	)		(9,108	)		(11,484	)		(95,832	)
p146602 - Tile		(780	)		(390	)		(585	)		(624	)		(819	)		(702	)		(702	)		(1,014	)		(741	)		(1,053	)		(897	)		(1,131	)		(9,438	)
p146603 - Vinyl		(800	)		(400	)		(600	)		(640	)		(840	)		(720	)		(720	)		(1,040	)		(760	)		(1,080	)		(920	)		(1,160	)		(9,680	)
p149599 - Wall Covering		(3,644	)		(1,822	)		(2,733	)		(2,915	)		(3,826	)		(3,280	)		(3,280	)		(4,737	)		(3,462	)		(4,920	)		(4,191	)		(5,284	)		(44,093	)

Turn Capital		(16,284	)		(8,073	)		(12,110	)		(12,917	)		(16,953	)		(14,531	)		(14,531	)		(20,990	)		(15,339	)		(21,797	)		(18,568	)		(23,412	)		(195,506	)
p149998 - CI Allocation - Turns		1,787			862			1,263			1,317			1,688			1,412			1,377			1,939			1,381			1,910			1,583			1,940			18,459

Turn CI Alloc		1,787			862			1,263			1,317			1,688			1,412			1,377			1,939			1,381			1,910			1,583			1,940			18,459

Turn CR		(14,497	)		(7,212	)		(10,846	)		(11,600	)		(15,266	)		(13,119	)		(13,154	)		(19,050	)		(13,958	)		(19,887	)		(16,985	)		(21,472	)		(177,047	)
p142419 - Stair Treads & Handrails - Oth		(14,826	)		(10,823	)		(12,047	)		(10,056	)		(10,683	)		10,017	)		(13,940	)		(10,808	)		(17,707	)		(14,426	)		(20,935	)		(13,477	)		(159,744	)
p148620 - Security Equipment		0			0			0			(2,000	)		(7,367	)		(6,167	)		(6,167	)		0			0			0			0			0			(21,700	)

Project Capital		(14,826	)		(10,823	)		(12,047	)		(12,056	)		(18,050	)		(16,184	)		(20,106	)		(10,808	)		(17,707	)		(14,426	)		(20,935	)		(13,477	)		(181,444	)
p149999 - Capital Rep - CI allocation acct		5,745			4,149			4,568			4,104			5,148			4,632			5,978			3,873			6,271			5,049			7,240			4,604			61,362

Project CI Alloc		5,745			4,149			4,568			4,104			5,148			4,632			5,978			3,873			6,271			5,049			7,240			4,604			61,362

Project CR		(9,081	)		(6,674	)		(7,479	)		(7,951	)		(12,901	)		(11,552	)		(14,128	)		(6,935	)		(11,436	)		(9,377	)		(13,695	)		(8,872	)		(120,081	)
p149901 - CapX - Cap Payroll		(6,523	)		(5,846	)		(6,231	)		(5,927	)		(6,284	)		(6,211	)		(6,471	)		(6,272	)		(6,120	)		(6,293	)		(5,999	)		(6,172	)		(74,348	)

Payroll Capital		(6,523	)		(5,846	)		(6,231	)		(5,927	)		(6,284	)		(6,211	)		(6,471	)		(6,272	)		(6,120	)		(6,293	)		(5,999	)		(6,172	)		(74,348	)
p149997 - CI Allocation - Labor		1,579			1,550			1,504			1,287			1,227			1,222			1,374			1,146			1,417			1,209			1,340			1,095			15,951

Payroll CI Alloc		1,579			1,550			1,504			1,287			1,227			1,222			1,374			1,146			1,417			1,209			1,340			1,095			15,951

CR Cap Payroll		(4,944	)		(4,296	)		(4,727	)		(4,640	)		(5,056	)		(4,989	)		(5,097	)		(5,125	)		(4,703	)		(5,084	)		(4,659	)		(5,077	)		(58,397	)
p149525 - Capitalized GP Supervision Fee		(4,524	)		0			0			0			0			0			0			0			0			0			0			(4,602	)		(9,126	)

GP Fees CR		(4,524	)		0			0			0			0			0			0			0			0			0			0			(4,602	)		(9,126	)

Total Turn and Project CR		(33,046	)		(18,182	)		(23,053	)		(24,191	)		(33,223	)		(29,660	)		(32,380	)		(31,110	)		(30,097	)		(34,349	)		(35,339	)		(40,023	)		(364,651	)
p144100 - Office Computers		0			0			0			0			0			0			(7,075	)		0			0			0			0			0			(7,075	)

Non RE Depreciable Assets		0			0			0			0			0			0			(7,075	)		0			0			0			0			0			(7,075	)



CHANGE IN LIABILITIES

p232001 - Principal 1st Mortgage		(29,168	)		(29,340	)		(29,512	)		(29,686	)		(29,861	)		(30,036	)		(30,213	)		(30,391	)		(30,570	)		(30,750	)		(30,930	)		(31,112	)		(361,569	)
p232101 - Principal 2nd Mortgage		(13,562	)		(13,633	)		(13,705	)		(13,777	)		(13,850	)		(13,923	)		(13,996	)		(14,070	)		(14,144	)		(14,218	)		(14,293	)		(14,369	)		(167,540	)
p232115 - Principal 3rd Mortgage		(10,416	)		(10,474	)		(10,531	)		(10,589	)		(10,648	)		(10,707	)		(10,766	)		(10,825	)		(10,885	)		(10,945	)		(11,005	)		(11,066	)		(128,857	)

205 - Secured Notes Payable		(53,146	)		(53,447	)		(53,748	)		(54,052	)		(54,359	)		(54,666	)		(54,975	)		(55,286	)		(55,599	)		(55,913	)		(56,228	)		(56,547	)		(657,966	)


CHANGE IN EQUITY

KTR Real Estate Advisors, LLC

Page 6 of 6



Village of Pennbrook Apartments Levittown, PA		June 8, 2011 Addenda

PROFESSIONAL QUALIFICATIONS

TERENCE TENER, MAI, ASA
MANAGING PARTNER


EXPERIENCE		Mr. Tener is a founding principal of KTR Real Estate Advisors LLC. Over the course of his career, Mr. Tener has appraised many prominent commercial properties, including the GM Building, 101 Park Avenue, 500 Park Avenue, 410 Park Avenue, 437 Madison Avenue, 475 Fifth Avenue, the Seagrams Building, 900 Third Avenue, Park Avenue Plaza and the Lever House. In addition, Mr. Tener has served as an expert witness in various federal and state courts including New York, New Jersey, Connecticut and Delaware. He has also valued such notable residential and mixed-use properties as CitiSpire, Metropolitan Tower and River Tower. He has been responsible for the valuation of hotels throughout the United States, including the New York Hilton, Washington Hilton, Pittsburgh Hilton, the American Stanhope and a chain of hotels located in Mexico, owned by Groupo Situr. In addition, Mr. Tener has consulted on the valuation of numerous retail properties, including the Smithaven Mall, Herald Center, Sony Entertainment Center in San Francisco and 730 North Michigan Avenue.

LICENSES		Connecticut Certified General Appraiser
		Massachusetts Certified General Appraiser
		Missouri Certified General Appraiser
		New Hampshire Certified General Appraiser
		New Jersey Certified General Appraiser
		New York Certified General Appraiser
		Vermont Certified General Appraiser
		Wyoming Certified General Appraiser
		New York Real Estate Broker

MEMBERSHIPS		Appraisal Institute — MAI Designation since 1978
		American Society of Appraisers (ASA) — Senior Member and former member of the Board of Governors for the NY Chapter
		MBA of New York — Board of Governors
		Real Estate Board of New York — Appraisal Committee
		National Association of Real Estate Fiduciaries
		Long Island Board of Realtors
		International Council of Shopping Centers (ICSC)
		Mortgage Bankers Association of America
		Young Mortgage Bankers Association
		Appraisal Institute Metropolitan New York Chapter — Admissions Committee and Ethics Committee
		Appraisal Journal Review Committee
		New York’s East Side Association — Former director
		Cardinal’s Committee of the Archdiocese of New York

KTR Real Estate Advisors, LLC



Village of Pennbrook Apartments Levittown, PA		June 8, 2011 Addenda

PROFESSIONAL QUALIFICATIONS

MENG CHEN, MAI
SENIOR APPRAISER


EXPERIENCE		Meng Chen is a Senior Appraiser with KTR Real Estate Advisors LLC. She has 9 years of commercial appraisal experience. Ms. Chen is a designated Member of Appraisal Institute and is a Certified General Appraiser in the State of New York. Notable appraisal assignments include the valuation of 1 South Penn Square (Widener Building) in Philadelphia, 294 Rodeo Drive in Beverly Hills, Hudson Yards land for eminent domain, as well as various other types of real estate including office, retail, industrial, residential, and vacant land properties

LICENSES		New York Certified General Appraiser #46000047255

MEMBERSHIPS		Appraisal Institute — MAI Designation

EDUCATION		Shenzhen University, China — Bachelor of Science in Civil Engineering University of Southern California, Los Angeles, CA — Master of Real Estate Development

		Appraisal Institute:

	s		Basic Appraisal Principles

	s		Basic Appraisal Procedures

	s		General Appraiser Income Approach/Part I

	s		General Appraiser Income Approach/Part II

	s		General Appraiser Sales Comparison Approach

	s		General Appraiser Site Valuation & Cost Approach

	s		General Appraiser Market Analysis and Highest and Best Use

	s		General Appraiser Report Writing & Case Studies

	s		Real Estate Finance, Statistics, Valuation Modeling

	s		Advanced Income Capitalization

	s		General Appraiser Market Analysis and Highest and Best Use

	s		Advanced Sales Comparison and Cost Approaches

	s		Report Writing and Valuation Analysis

	s		Advanced Applications

KTR Real Estate Advisors, LLC


*Functional Obsolescence*		The subject property’s design, systems and floor plans are consistent with traditional garden style apartment complexes. The property has operated at rental rates and occupancy levels that are consistent with that of other similar properties within the influencing market, attesting to its functional adequacy. Considering these factors, no functional obsolescence is noted.

*External Obsolescence*		External obsolescence is a loss in value resulting from conditions that are present outside the subject property and is usually incurable. No external obsolescence was noted.

*Conclusions*		The subject improvements have adequate functional utility, conform well to the general character of the neighborhood and is generally similar to competitive properties.



NPI Equity Investments, Inc. Village of Pennbrook Apartments		June 8, 2011 Page 2


INTRODUCTION
Title Page
Letter of Transmittal
Table of Contents			i
Certificate of Appraisal			ii
Basic Assumptions and Limiting Conditions			iii
Subject Property Photographs & Maps			v

PREMISES OF THE APPRAISAL
Summary of Salient Facts and Conclusions			1
Property Identification			2
Sales History			2
Purpose and Scope of the Appraisal			2
Definition of Market Value			3
Property Rights Appraised			3
Intended Use and User			3
Exposure Time			4

PRESENTATION OF DATA
Regional and Area Analysis			5
Neighborhood Analysis			9
Site Analysis			10
Improvement Analysis			12
Zoning Analysis			15
Real Estate Assessments and Taxes			16
Apartment Market Analysis			17

ANALYSIS OF DATA AND CONCLUSIONS
Highest and Best Use			26
Valuation Process			27
Income Capitalization Approach			29
Sales Comparison Approach			37
Reconciliation and Final Value Conclusion			45

ADDENDA
Additional Subject Property Photographs
Submitted Information
Qualifications of the Appraiser


		The Port of Philadelphia and Camden, located at the head of the Delaware Bay, is one of the nation’s major deepwater seaports and is the second busiest port on the North Atlantic coast for total volume. The port handles more than one-quarter of the entire North Atlantic District’s annual tonnage and is the fourth largest in the U.S. for handling imported goods. Over 60 million metric tons of cargo moves through the port annually and over 3,000 ships load and offload at the port each year. The port is strategically located at the center of the Northeast Corridor, the nation’s largest and richest marketplace, and is directly accessible by rail and truck to more major cities than any other port in the nation.

*Conclusions*		Philadelphia is located centrally in the Boston to Washington corridor; has excellent highway, rail and water access, an educated workforce and a wealth of cultural attractions. Inline with the rest of the country as a major urban city, Philadelphia has felt the challenges of the national recession and has seen job losses in many industries. The recession apparently ended in 2010, and the economy is expected to gain steam in 2011. Given its location, transportation network and diverse and educated workforce, the region has good potential for growth over the long-term.


COMPARABLE RENTAL 1		Chesterfield
		1338 Veterans Highway
		Levittown, PA 19056


*Units*		247

*Year Built*		1968

*Occupancy*		97%

*Amenities*		Central AC, balcony/patio, cable ready, dishwasher, microwave, refrigerator. Complex amenities include a laundry facilities, swim club, fitness center, and community room.

*Concessions*		Prices change often and rents for individual floor plans are reduced as needed to help bolster occupancy. There are currently no concessions being offered at this comparable.


Type	Size		Rent		Rent/SF

1-Bed/1-Bath		570-690		$800-$880		$1.16- $1.54
2-Bed/2-Bath		835		$1,020-$1,075		$1.22- $1.29


*Comments*		It is located approximately 4.3 miles west of the subject property. This property is in similar condition with superior amenities.


COMPARABLE RENTAL 2		Orangewood
		6535 Mill Creek Road
		Levittown, PA 19057


*Comments*		It is located approximately 2.5 miles southwest of the subject property. This property is in similar condition and offers comparable amenities.


COMPARABLE RENTAL 3		Hidden Forest
		502 Hidden Forest Court
		Fairless Hills, PA 19030


*Comments*		It is located approximately 2.4 miles west of the subject property. This property is in similar condition; however, it has in-unit washer/dryers that is considered superior to the subject.


COMPARABLE RENTAL 4		Raquet Club
		1970 New Rodgers Road
		Levittown, PA 19057


*Comments*		It is located approximately 4.2 miles southwest of the subject property. This property is in similar condition; however, it has superior amenities.


*Conclusion*		The subject is expected to continue to capture its fair share of the market at the indicated economic rates. The subject’s potential gross rent is summarized in the following chart:


Type	Mix		Size		Total Area		Rent		Rent/SF		Total Rent

1B/1B S		22		585		12,870	$	800	$	1.37	$	17,600
1B/1B L		24		620		14,880	$	825	$	1.33	$	19,800
1B/1B w Den		252		905		228,060	$	905	$	1.00	$	228,060
2B/1B S		276		930		256,680	$	975	$	1.05	$	269,100
2B/1B L		24		950		22,800	$	1,025	$	1.08	$	24,600
2B/2B		62		985		61,070	$	1,225	$	1.24	$	75,950
2B/2B w Den		62		1,030		63,860	$	1,290	$	1.25	$	79,980

Totals/Averages		722		914		660,220	$	990	$	1.08	$	715,090


*Amenities*		The subject offers a standard amenity package consisting of a swimming pool, tennis courts, a playground and a clubhouse. Adjustments for amenities have been made on an individual basis to account for amenities offered.

		The following is a brief description of the relevant building sales considered pertinent in the valuation of the subject property.


Property Name:		Fox Run Apartments
Location:		60 Fox Run Dr.
Neighborhood:		Plainsboro, NJ
Parcel ID:		18-02001-0000-00003, 00017
Date of Sale:		December 31, 2010
Grantor:		AG/VP Fox Run Owner, LLC
Grantee:		Avalon II New Jersey Value LP
Consideration:		$86,500,000
Number of Units:		776
Size (Sq. Ft.):		684,622 square feet
Occupancy:		96%
Price per Unit:		$111,469 per unit
Price per Square Foot:		$126.35 per square foot


Analysis:		No adjustment for market conditions has been processed. The comparable is located in Plainsboro, NJ, which is considered a superior location to that of the subject and accordingly a slight downward adjustment has been applied for location. Age, condition and quality are considered superior requiring a moderate downward adjustment. This comparable’s average unit size is 882 square feet which is considered similar to the subject’s average unit size of 914 square feet and therefore no adjustment has been applied for average unit size. Amenities at the comparable are considered superior and a slight downward adjustment has been applied. Overall, a significant downward adjustment to the market adjusted unit price is warranted.


*Comparable Sale No. 2*

Property Name:		ARK Rushwood
Location:		10825 E Keswick Road
Neighborhood:		Philadelphia, PA
Parcel ID:		881234700
Date of Sale:		November 8, 2010
Grantor:		Korman Financing Partnership
Grantee:		CRP-Grep Rushwood
Consideration:		$34,000,000
Number of Units:		392
Size (Sq. Ft.):		404,000 square feet
Occupancy:		N/A
Price per Unit:		$86,735 per unit
Price per Square Foot:		$84.16 per square foot


*Comparable Sale No. 3*

Property Name:		The Woods
Location:		1410 E Butler Pike
Neighborhood:		Ambler, PA
Parcel ID:		54-03241008
Date of Sale:		October 5, 2010
Grantor:		SDCO The Woods, Inc
Grantee:		The Woods at Upper Dublin, PA
Consideration:		$33,000,000
Number of Units:		320
Size (Sq. Ft.):		240,467 square feet
Occupancy:		N/A
Price per Unit:		$103,125 per unit
Price per Square Foot:		$137.23 per square foot


EXPERIENCE		Shaun Kest is an Appraiser with KTR Real Estate Advisors LLC. He has five years of commercial appraisal experience. Mr. Kest is actively pursuing designation as a member of the Appraisal Institute.

		Prior to joining the firm, Mr. Kest worked for the Chatham at North Hills where he assisted in the development of a townhouse community development and for East End Properties where he assisted in the development of a shopping center.

LICENSES		New York Certified General Appraiser #46000049297

MEMBERSHIPS		Appraisal Institute — Associate Member since 2007

EDUCATION		University of Miami, Miami, Florida — BBA (Finance)

		Appraisal Institute:

	s		Introduction to Real Estate Appraisal (R-1)

	s		Basic Valuation Principles & Procedures (R-2)

	s		Appraisal Fair Housing (AQ-1)

	s		National USPAP Appraisal Course (15-Hour)

	s		Introduction to Income Property Valuation (G-1)

	s		Principles of Income Property (G-2)

	s		Applied Income Property Valuation (G-3)