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Appraisal Premise

Interest Appraised

Date of Value

Value Conclusion

Fee Simple Estate

July 17, 2007

$17,600,000

VALUATION & ADVISORY SERVICES

777 Brickell Avenue, Suite 910
Miami, FL 33131

T (305) 381-6449
F (305) 381-6441

www.cbre.com

July 19, 2007

Myles Diamond
AVP/Senior Analyst
CAPMARK FINANCE, INC.
116 Welsh Road
Horsham, PA 19044


RE:		Appraisal of Presidential House
		1572 NE 191st Street
		North Miami Beach, Miami-Dade County, Florida
		CBRE File No 07-397MI-015
		Client Reference No 000500

Dear Mr. Diamond:

At your request and authorization, CB Richard Ellis (CBRE) has prepared an appraisal of the market value of the referenced property. Our analysis is presented in the following Self Contained Appraisal Report.

The subject is a 203-unit mid-rise style, apartment property located at 1572 NE 191st Street in North Miami Beach, Miami-Dade County, Florida. It was built in 1966 and is situated on a 5.790-acre site. Currently the facility is 94.6% occupied and is considered to be in average condition. It is considered to be a Class C property in this market. The subject is more fully described, legally and physically, within the enclosed report.

Based on the analysis contained in the following report, the market value of the subject is concluded as follows:

MARKET VALUE CONCLUSION


Appraisal Premise	Interest Appraised	Date of Value	Value Conclusion

As Is	Fee Simple Estate	July 17, 2007	$	17,600,000


Compiled by CBRE

Data, information, and calculations leading to the value conclusion are incorporated in the report following this letter. The report, in its entirety, including all assumptions and limiting conditions, is an integral part of, and inseparable from, this letter.

Myles Diamond
July 19, 2007
Page 2

The following appraisal sets forth the most pertinent data gathered, the techniques employed, and the reasoning leading to the opinion of value. The analyses, opinions and conclusions were developed based on, and this report has been prepared in conformance with, our interpretation of the guidelines and recommendations set forth in the Uniform Standards of Professional Appraisal Practice (USPAP), the requirements of the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute, the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA), Title XI Regulations and FNMA underwriting guidelines.

The report is for the sole use of the client; however, client may provide only complete, final copies of the appraisal report in its entirety (but not component parts) to third parties who shall review such reports in connection with loan underwriting or securitization efforts. Appraiser is not required to explain or testify as to appraisal results other than to respond to the client for routine and customary questions. Please note that our consent to allow an appraisal report prepared by CBRE or portions of such report, to become part of or be referenced in any public offering, the granting of such consent will be at our sole discretion and, if given, will be on condition that we will be provided with an Indemnification Agreement and/or Non-Reliance letter, in a form and content satisfactory to us, by a party satisfactory to us. We do consent to your submission of the reports to rating agencies, loan participants or your auditors in its entirety (but not component parts) without the need to provide us with an Indemnification Agreement and/or Non-Reliance letter.

CBRE hereby expressly granted to Client the right to copy this report and distribute it to other parties in the transaction for which this report has been prepared, including employees of Client, other lenders in the transaction, and the borrower, if any. It has been a pleasure to assist you in this assignment. If you have any questions concerning the analysis, or if CBRE can be of further service, please contact us.

Respectfully submitted,

CBRE - VALUATION & ADVISORY SERVICES




Buddy R. Urban, MAI		James. E. Agner, MAI
Vice President/Multi-family Specialist		Managing Director
St. Cert. Gen. REA RZ2815		St. Cert. Gen. REA RZ382

Phone: (305) 381-6449		Phone: (305) 381-6480
Fax: (305) 381-6441		Fax: (305) 381-6441
Email: buddy.urban@cbre.com		Email: james.agner@cbre.com


PRESIDENTIAL HOUSE		CERTIFICATION OF THE APPRAISAL

CERTIFICATION OF THE APPRAISAL

We certify to the best of our knowledge and belief:

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

2.		The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are our personal, impartial and unbiased professional analyses, opinions, and conclusions.

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

4.		Our engagement in this assignment was not contingent upon developing or reporting predetermined results.

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

6.		This appraisal assignment was not based upon a requested minimum valuation, a specific valuation, or the approval of a loan.

7.		Our analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal, as well as the requirements of the State of Florida.

8.		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, which include the Uniform Standards of Professional Appraisal Practice.

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

10.		As of the date of this report, Buddy R. Urban, MAI and James. E. Agner, MAI have completed the continuing education program of the Appraisal Institute.

11.		Buddy R. Urban, MAI has and James. E. Agner, MAI has not made a personal inspection of the property that is the subject of this report.

12.		Donna Urban provided significant real property appraisal assistance to the persons signing this report.

13.		Valuation & Advisory Services operates as an independent economic entity within CBRE. Although employees of other CBRE divisions may be contacted as a part of our routine market research investigations, absolute client confidentiality and privacy are maintained at all times with regard to this assignment without conflict of interest.




Buddy R. Urban, MAI		James. E. Agner, MAI
St. Cert. Gen. REA RZ2815		St. Cert. Gen. REA RZ382


PRESIDENTIAL HOUSE		INTRODUCTION

INTRODUCTION

PROPERTY IDENTIFICATION

The subject is a 203-unit garden-style, apartment property located at 1572 NE 191st Street in North Miami Beach. It was built in 1966 and is situated on a 5.790-acre site. Currently the facility is 94.6% occupied and is considered to be in average condition. It is considered to be a Class C property in this market. The subject is more fully described, legally and physically, within the enclosed report.

OWNERSHIP AND PROPERTY HISTORY

Title to the property is currently vested in the name of AIMCO, who acquired title to the property in October 1984, as improved for $7,300,000, cash, as recorded in Book 12306, Page 1871 of the Miami-Dade County Deed Records. This most recent sale transaction of the subject was intended to be an arm’s length transaction.

To the best of our knowledge, there has been no other ownership transfer of the property during the previous three years.

PREMISE OF THE APPRAISAL/RELEVANT DATES

The following table illustrates the various dates associated with the valuation of the subject and the valuation premise(s):

PREMISE OF THE APPRAISAL/RELEVANT DATES


Date of Report:		July 19, 2007
Date of Inspection:		July 17, 2007
Date of Value
As Is:		July 17, 2007


Compiled by CBRE

TERMS AND DEFINITIONS

The current economic definition agreed upon by agencies that regulate federal financial institutions in the U.S. (and used herein) is as follows:

The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, 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:


PRESIDENTIAL HOUSE		INTRODUCTION

	1.		buyer and seller are typically motivated;

	2.		both parties are well informed or well advised, and acting in what they consider their own 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. ¹

The Glossary of Terms in the addenda provides definitions for additional terms that are, and may be used in this appraisal.

INTENDED USE AND USER OF REPORT

This appraisal is to be used by the client for mortgage underwriting purposes.

SCOPE OF WORK

The scope of the assignment relates to the extent and manner in which research is conducted, data is gathered and analysis is applied, all based upon the following problem-identifying factors stated elsewhere in this report:

	•		Client

	•		Intended use

	•		Intended user

	•		Type of opinion

	•		Effective date of opinion

	•		Relevant characteristics about the subject

	•		Assignment conditions

This appraisal of the subject has been presented in the form of a Self-Contained Appraisal Report, which is intended to comply with the reporting requirements set forth under Standards Rule 2-2(a) of USPAP. That is, this report incorporates, to the fullest extent possible, practical explanation of the data, reasoning and analysis that were used to develop the opinion of value. This report also includes thorough descriptions of the subject and the market for the property type. CBRE completed the following steps for this assignment:

Extent to Which the Property is Identified

CBRE collected the relevant information about the subject from the owner (or representatives), public records and through an inspection of the subject. The property was legally identified through its


¹		Office of Comptroller of the Currency (OCC), 12 CFR Part 34, Subpart C – Appraisals, 34.42 (g); Office of Thrift Supervision (OTS), 12 CFR 564.2 (g); Appraisal Institute, The Dictionary of Real Estate Appraisal, 4^th ed. (Chicago: Appraisal Institute, 2002), 177-178. This is also compatible with the RTC, FDIC, FRS and NCUA definitions of market value as well as the example referenced in the Uniform Standards of Professional Appraisal Practice (USPAP).


PRESIDENTIAL HOUSE		INTRODUCTION

postal address, assessor’s records and legal description. Economic characteristics of the subject were identified via a recent rent roll, and historical operating statements.

Extent to Which the Property is Inspected

CBRE inspected both the interior and exterior of the subject, as well as its surrounding environs on the effective date of appraisal.

Type and Extent of the Data Researched

CBRE reviewed the micro and/or macro market environments with respect to physical and economic factors relevant to the valuation process. This process included interviews with regional and/or local market participants, available published data, and other various resources. CBRE also conducted regional and/or local research with respect to applicable tax data, zoning requirements, flood zone status, demographics, income and expense data, and comparable listing, sale and rental information.

Type and Extent of Analysis Applied

CBRE analyzed the data gathered through the use of appropriate and accepted appraisal methodology to arrive at a probable value indication via each applicable approach to value. Approaches to value used include the Cost Approach, Sales Comparison Approach and Income Approach. The steps required to complete each approach are discussed in the methodology section. CBRE then correlated and reconciled the results into a reasonable and defensible value conclusion, as defined herein. A reasonable exposure time and marketing time associated with the value estimate presented has also been concluded.

SPECIAL APPRAISAL INSTRUCTIONS

There have been no special appraisal instructions for this assignment.

EXPOSURE/MARKETING TIME

Current appraisal guidelines require an estimate of a reasonable time period in which the subject could be brought to market and sold. This reasonable time frame can either be examined historically or prospectively. In a historical analysis, this is referred to as exposure time. Exposure time always precedes the date of value, with the underlying premise being the time a property would have been on the market prior to the date of value, such that it would sell at its appraised value as of the date of value. On a prospective basis, the term marketing time is most often used. The exposure/marketing time is a function of price, time, and use. It is not an isolated estimate of time alone. In consideration of these factors, we have analyzed the following:

	•		exposure periods for comparable sales used in this appraisal;

	•		marketing time information from the CBRE National Investor Survey; and


PRESIDENTIAL HOUSE		INTRODUCTION

•

the opinions of market participants.

The following table presents the information derived from these sources.

EXPOSURE TIME INFORMATION


	Exposure Time (Months)
Investment Type	Range		Average

CBRE Apartments
Class A		1.0 - 9.0		4.1
Class B		1.0 - 6.0		3.7
Class C		3.0 - 12.0		7.2

Korpacz Apartment
National Data		1.0 - 12.0		5.7

Local Market Professionals		6.0 - 12.0		9.0
CBRE Estimate	9 Months


Source: CBRE National Investor Survey & Korpacz Real Estate Investor Survey

In general, the improved sales indicate exposure times in the upper portion of the range indicated by the investor survey. In addition to the sales and survey data, we have also reviewed the assumptions and conclusions reached, particularly the income estimates and rates of return and there potential impact on exposure/marketing time. Based on these analyses, we have concluded an exposure/marketing time of 9 months or less would be considered reasonable for the subject.

This exposure/marketing time reflects current economic conditions, current real estate investment market conditions, the terms and availability of financing for real estate acquisitions, and property and market-specific factors. It assumes that the subject is (or has been) actively and professionally marketed. The marketing/exposure time would apply to all valuation premises included in this report.


PRESIDENTIAL HOUSE		AREA ANALYSIS

AREA ANALYSIS

Economy.com provides the following Miami metro area economic summary as of March 2007. The full Economy.com report is presented in the Addenda.

MIAMI ECONOMIC ANALYSIS


Indicators	1999		2000		2001		2002		2003		2004		2005		2006		2007		2008		2009		2010

Gross Metro Product, C$B		71.5		73.7		74.1		76.9		79.9		84.1		87.1		88.9		91.3		93.9		96.5		99.2
% Change		3.3		3.1		0.6		3.7		4.0		5.2		3.5		2.1		2.8		2.7		2.8		2.8
Total Employment (000)		996.3		1,008.5		991.3		984.3		1,005.8		1,029.9		1,047.4		1,063.5		1,075.8		1,090.2		1,106.2		1,122.6
% Change		2.7		1.2		-1.7		-0.7		2.2		2.4		1.7		1.5		1.2		1.3		1.5		1.5
Unemployment Rate		5.1		6.0		6.5		5.9		5.5		4.4		3.8		3.5		3.5		3.5		3.5		3.5
Personal Income Growth		8.4		4.3		3.7		3.8		8.3		5.5		6.9		6.5		4.6		4.6		4.9		5.2
Population (000)		2,260.5		2,287.3		2,315.2		2,334.1		2,356.2		2,373.1		2,402.8		2,432.7		2,460.3		2,490.3		2,524.0		2,563.3
Single-Family Permits		5,998		6,828		6,374		8,740		9,603		9,922		6,910		5,811		6,378		6,556		6,723		6,899
Multifamily Permits		6,477		7,168		8,232		6,793		13,253		16,198		14,071		8,754		9,295		9,732		10,178		10,536
Existing Home Price ($Ths)		138.2		159.5		184.3		221.2		271.8		349.9		375.3		360.8		357.6		365.8		375.2		384.5
Mortgage Originations ($Mil)		8,131		13,801		18,319		28,675		27,761		36,356		30,442		29,612		26,475		26,935		27,534		27,980
Net Migration (000)		24.8		12.0		12.5		3.5		8.1		2.5		14.2		14.3		11.7		13.9		17.4		22.6
Personal Bankruptcies		12,446		14,447		14,607		14,487		12,604		16,579		8,020		9,629		10,465		11,617		12,773		13,487


Source: Economy.com


PRESIDENTIAL HOUSE		AREA ANALYSIS

RECENT PERFORMANCE

Miami’s economy is expanding at a moderate but stable pace. Unlike most other Florida metro areas, Miami’s growth did not slow significantly over the past year; job growth no longer lags behind the heretofore surging Ft. Lauderdale and West Palm Beach areas, due in part to more stable construction employment. Miami is now only growing marginally slower than the state, the remaining gap being accounted for by slower population growth.

Benchmark revisions marked stronger construction job growth through mid-2006 in Miami, although it did falter in recent months. Miami’s financial services industry, which boomed in 2006, provides some support for the labor market in the wake of the construction downturn. This, too, may falter as mortgage lending eases, but labor markets remain decidedly tight with a jobless rate below 3.5%, the lowest on record.

Other indicators, however, show some weaknesses emerging. Household credit quality is deteriorating rapidly, residential construction permits have fallen by nearly half over the past year, and the area’s hotel occupancy rate is down from a mid-2006 peak.

HOUSING

The construction boom will peter out later in the year, and while an outright bust may not occur, housing-related activity and house prices will continue to sag until the accumulated excesses have been worked off. Miami is running behind the rest of the state in the housing cycle; the metro division’s housing markets are faring better than in many other parts of the state. There are still no signs of a trend decline in home prices in the metro division. The median house price for existing homes hit a trough last fall but has rebounded since and even hit a record high in January according to the Florida Association of Realtors. But all is not well. Home sales have been sagging since the spring of 2006 and saw a further drop in the first two months of this year. The buildup of inventory of unsold homes has reached dizzying heights and, if unleashed on the market, will no doubt cause prices to drop. This inventory is already discouraging new construction as indicated by the fall-off in permits.

TOURISM

Buoyant tourism and business travel benefit the area’s hotel industry with high utilization rates in the form of rapid room rate growth and record-high revenue per room. Miami’s tourism industry saw a near-record number of visitors in 2006. Added capacity and softening visitor numbers are, however, chipping away at utilization rates. A weakened dollar keeps international visitation strong, but the weaker U.S. economy will slow domestic visitors, making the coming year somewhat leaner for the industry.


PRESIDENTIAL HOUSE		NEIGHBORHOOD ANALYSIS

radius of the subject range in the $150,000-$300,000 price range. According to demographic data over 74% of the homes built within a three-mile radius of the subject were constructed between 1940s and 1979. The average home value within a three-mile radius is about $194,308. The Presidential Golf Course is located just north of the subject and the Aventura Mall, a large regional shopping facility is located approximately 1¹/2 miles east of the subject.

ACCESS

Access to the City of North Miami Beach and the overall subject area is primarily provided via Interstate 95, Biscayne Boulevard (U.S. Highway No. 1), Miami Gardens, NW/NE 135^th Street, and West Dixie Highway. Interstate 95 is the major north/south expressway providing direct access to the southeastern and northeastern areas of Miami-Dade County, as well as Broward County to the north and is within 2 miles east of the subject neighborhood. Biscayne Boulevard (U.S. Highway No. 1) reflects a well-traveled artery providing northerly/southerly access from SE 3rd street at the south to the Broward County line at the north. Miami Gardens and NW/NE 135^th Street provide east/west access.

In addition, the Palmetto Expressway (State Road No. 826) and the Ronald Reagan Turnpike interchange located approximately 3 miles southwest of the subject area at the Golden Glades Exchange reflect major thoroughfares within the overall Miami-Dade County area. Furthermore, the subject neighborhood is located within proximity to the Atlantic Ocean/beach, with good accessibility, as well as view/exposure characteristics afforded many high-rise properties. Overall, access to and throughout the subject neighborhood is considered good.

DEMOGRAPHICS

Selected neighborhood demographics in a one-, three-, and five-mile radius from the subject are shown in the following table:


PRESIDENTIAL HOUSE		NEIGHBORHOOD ANALYSIS

SELECTED NEIGHBORHOOD DEMOGRAPHICS


1560 NE 191st Street	Radius 1.0			Radius 3.0			Radius 5.0
Miami, FL	Mile			Mile			Mile

Population
2012 Population		21,667			197,186			453,470
2007 Population		20,991			189,936			439,128
2000 Population		20,099			181,818			424,032
1990 Population		16,973			149,287			362,564
Annual Growth 2007 - 2012		0.64	%		0.75	%		0.64	%
Annual Growth 2000 - 2007		0.62	%		0.63	%		0.50	%
Annual Growth 1990 - 2000		1.70	%		1.99	%		1.58	%
Households
2012 Households		8,885			77,896			175,179
2007 Households		8,570			75,041			170,889
2000 Households		8,168			71,968			167,389
1990 Households		7,831			64,339			154,336
Annual Growth 2007 - 2012		0.72	%		0.75	%		0.50	%
Annual Growth 2000 - 2007		0.69	%		0.60	%		0.30	%
Annual Growth 1990 - 2000		0.42	%		1.13	%		0.82	%
Income
2007 Median HH Inc	$	37,290		$	37,534		$	37,598
2007 Estimated Average Household Income	$	51,128		$	55,530		$	53,843
2007 Estimated Per Capita Income	$	21,162		$	22,066		$	21,146
Age 25+ College Graduates - 2000		3,083			26,353			57,920
Age 25+ Percent College Graduates - 2007		20.9	%		20.4	%		19.6	%


Source: CBRE

GROWTH AND TRENDS

The preceding table indicates the subject area to be experiencing nominal increases in population and households. During the past seven years, population has increased at overall rates of 0.62%, -0.63% and 0.50% within the one, three and five-mile radius, respectively, while the households have decreased 0.69%, 0.60% and 0.30% within the one, three and five-mile radius. In addition, population and households are projected to exhibit similar population/household formation patterns over the next five years. Nominal changes in population and household formation reflect the built-up nature of the neighborhood.

As is typical of older, built-up areas, new development comes at the expense of razing older developments from a site. A prime example of this is Land Sale Three discussed in the Land Valuation section. This tract is currently improved with an older mobile home park, but has recently been acquired for re-development into a garden style multi-family complex. The new development plans


PRESIDENTIAL HOUSE		MARKET ANALYSIS

MARKET ANALYSIS

The market analysis forms a basis for assessing market area boundaries, supply and demand factors, and indications of financial feasibility. Primary data sources utilized for this analysis includes Reinhold Wolff.

The subject is located in the North Miami Beach submarket and is considered a Class C, mid-rise apartment complex. According to the Institute of Real Estate Management (via Income/Expense Analysis: Conventional Apartments 2003), the following property definitions may be applicable towards the subject property:

High Rise Elevator Projects: This group is confined to elevator buildings, which are four stories or more in height.

Low-Rise Projects (25 units or more): Includes walk-up buildings and elevator buildings 3 stories or less.

DEMOGRAPHIC ANALYSIS

Demand for additional residential property is a direct function of population change. Multi-family communities are products of a clearly definable demand relating directly to population shifts.

Housing, Population and Household Formation

The following table illustrates the population and household changes for the subject neighborhood.

POPULATION AND HOUSEHOLD PROJECTIONS


	Radius 1.0			Radius 3.0			Radius 5.0
	Mile			Mile			Mile

Population
2012 Population		21,667			197,186			453,470
2007 Population		20,991			189,936			439,128
2000 Population		20,099			181,818			424,032
1990 Population		16,973			149,287			362,564
Annual Growth 2007 - 2012		0.64	%		0.75	%		0.64	%
Annual Growth 2000 - 2007		0.62	%		0.63	%		0.50	%
Annual Growth 1990 - 2000		1.70	%		1.99	%		1.58	%
Households
2012 Households		8,885			77,896			175,179
2007 Households		8,570			75,041			170,889
2000 Households		8,168			71,968			167,389
1990 Households		7,831			64,339			154,336
Annual Growth 2007 - 2012		0.72	%		0.75	%		0.50	%
Annual Growth 2000 - 2007		0.69	%		0.60	%		0.30	%
Annual Growth 1990 - 2000		0.42	%		1.13	%		0.82	%


Source: CBRE


PRESIDENTIAL HOUSE		MARKET ANALYSIS

Households represent a basic unit of demand in the housing market. According to the data, the subject’s neighborhood is experiencing virtually no change in both population and households. Increases in population and households are limited due to the built-up nature of the neighborhood.

Income Distributions

Household income available for expenditure on housing and other consumer items is a primary factor in determining the price/rent level of housing demand in a market area. In the case of this study, projections of household income, particularly for renters, identifies in gross terms the market from which the subject submarket draws. The following table illustrates estimated household income distribution for the subject neighborhood.

HOUSEHOLD INCOME DISTRIBUTION


	Radius 1.0			Radius 3.0			Radius 5.0
	Mile			Mile			Mile

Households by Income Distribution - 2007
Less than $15K		20.15	%		18.99	%		18.63	%
$15K - $25K		14.19	%		14.79	%		14.59	%
$25K - $35K		12.71	%		13.07	%		13.54	%
$35K - $50K		18.20	%		17.06	%		16.84	%
$50K - $75K		17.21	%		16.73	%		17.04	%
$75K - $100K		7.47	%		7.65	%		8.17	%
$100K - $150K		5.83	%		6.40	%		6.74	%
$150K - $250K		2.89	%		3.23	%		2.78	%
$250K - $500K		0.99	%		1.28	%		1.01	%
$500K or more		0.34	%		0.79	%		0.64	%


Source: CBRE

The following table illustrates the median and average household income levels for the subject neighborhood.

HOUSEHOLD INCOME LEVELS


	Radius 1.0		Radius 3.0		Radius 5.0
	Mile		Mile		Mile

Income
2007 Median HH Inc	$	37,290	$	37,534	$	37,598
2007 Estimated Average Household Income	$	51,128	$	55,530	$	53,843
2007 Estimated Per Capita Income	$	21,162	$	22,066	$	21,146


Source: CBRE

An analysis of the income data indicates that the submarket is generally comprised of lower to middle-income economic cohort groups, which include the target groups to which the subject property is oriented.


PRESIDENTIAL HOUSE		MARKET ANALYSIS

Employment

An employment breakdown typically indicates the working class characteristics for a given market area. The specific employment population within the indicated radii of the subject is as follows:

EMPLOYMENT BY INDUSTRY


	Radius 1.0			Radius 3.0			Radius 5.0
	Mile			Mile			Mile

Occupation
Agr/Frst/Fish/Hunt/Mine		0.07	%		0.14	%		0.18	%
Construction		5.24	%		5.42	%		5.95	%
Total Manufacturing		6.34	%		5.47	%		5.66	%
Wholesale Trade		6.40	%		5.05	%		4.49	%
Retail Trade		15.41	%		14.97	%		13.80	%
Transport/Warehse/Utils		5.35	%		5.86	%		6.74	%
Information		2.66	%		2.90	%		3.00	%
Fin/Insur/RE/Rent/Lse		8.87	%		9.03	%		8.39	%
Prof/Sci/Tech/Admin		6.49	%		5.92	%		5.14	%
Mgmt of Companies		0.00	%		0.05	%		0.03	%
Admin/Spprt/Waste Mgmt		5.89	%		5.72	%		6.01	%
Educational Svcs		6.96	%		6.09	%		6.84	%
Health Care/Soc Asst		11.46	%		12.69	%		12.75	%
Entertainment & Rec Services		2.22	%		2.13	%		2.31	%
Accommdtn/Food Svcs		8.65	%		8.53	%		8.14	%
Oth Svcs, Not Pub Admin		5.55	%		5.76	%		5.83	%
Public Administration		2.44	%		4.24	%		4.73	%


Source: CBRE

The previous table illustrates the employment character of the submarket, indicating a predominantly lower to middle-income employment profile, with the majority of the population holding retail trade, manufacturing, health care and financial and real estate related jobs.

Outlook

Based on this analysis, the immediate area surrounding the subject property is projected to experience very little growth relative to households and population in the near future. Given the area demographics, it appears that demand for both comparable surrounding area apartment units and the subject property will continue to be favorable. New construction in the area is predominately condominiums, most of which have sold out prior to beginning construction. Others, not yet in the construction phase may not be developed, as the condo market has flattened significantly in the past year and development plans are likely to be put on hold at a number of planned projects.

The overall market is expected to experience a continuation of the operating environment that has existed recently and should remain stable. Further, while new construction is occurring in many sectors, overbuilding is not anticipated during the near term.


PRESIDENTIAL HOUSE		MARKET ANALYSIS

MARKET OVERVIEW

The following discussion illustrates some general observations in the surrounding apartment market. The Valuation and Advisory Services Group of CB Richard Ellis, Inc. publishes a National Investor Survey on a periodic basis. This issue, which is the seventeenth, contains responses from 50 investors covering 15 various properties type and three property classes. The three property types are defined as follows:

Class-A Property - Top quality, institutional-grade property, generally defined as properties in major metropolitan areas with values in excess of $10.0 million dollars that are characterized by strong credit tenancy.

Class-B Property- Average-quality, non-institutional-grade property with average credit tenancy. These properties are typically characterized by second tier locations within the market, or by lower quality of construction relative to Class A properties.

Class-C Property - Low-quality, developer/speculator-type property. Typically entails value-added scenarios, tenant leasing/absorption issues, pending capital expenditures, etc.

The subject is considered a Class C apartment building of non-institutional-grade quality. The respondents represent a cross section of the national real estate investment community.

Acquisition Focus

For acquisitions, investors are generally focusing on top-quality, investment-grade properties located in high-growth or development-constrained areas. Most are looking to purchase stabilized properties at or below replacement cost (leased at or below market rental rates and/or with strong credit tenants). For under-performing or “value-added” properties, investors are buying current income at high cap rates. Emphasis is placed on cash-on-cash returns, IRRs, and a balance between current or going-in yields and future appreciation potential.

Preferred Property Types

Based upon the total number of investment criteria responses, the multi-housing market was ranked in the CB Richard Ellis, Inc. National Investor Survey as the most preferred property type out of nine property types. Over the past two years the multi-housing property type has been the most preferred property type. Growth in the apartment market, both in terms of rental rate increases and price appreciation, is expected to continue in the short term, albeit at a more moderate pace for the South Florida market area.


PRESIDENTIAL HOUSE		MARKET ANALYSIS

Investor Activity

Investor activity in the multi-housing market has been strong throughout all the major submarkets, with numerous sales over the past 12 months. Based on the CB Richard Ellis, Inc. National Investor Survey, multi-housing properties are the number one choice of investors in the marketplace.

With regard to investment criteria, the CB Richard Ellis, Inc. Survey reported typical going-in overall capitalization rates for Class C properties ranged from 6.00% to 9.00% with an average of 7.37%. Terminal Capitalization rates for Class C properties range from 6.50% to 9.00%, with an average of 7.96%. The discount rates for Class C properties ranged from 7.00% to 10.00%, with an average of 9.17%. These rates are generally down from our prior survey, indicating the desirability of this investment type.

In addition, we consulted the Korpacz Real Estate Investor Survey, Second Quarter 2007 that reported overall capitalization rates of 3.5% to 8.00% with an average of 5.80%. Terminal Capitalization rates range from 4.50% to 8.50%, with an average of 6.61%. The discount rates ranged from 6.00% to 12.00%, with an average of 8.36%. Korpacz reported overall and terminal rates down 21 and 52 basis points from one-year ago.

MIAMI-DADE COUNTY APARTMENT MARKET ANALYSIS

An overview of local market conditions is a necessary aspect of the appraisal process. The market analysis forms a basis for assessing market area boundaries, supply and demand factors, and indications of financial feasibility. In this section CB Richard Ellis, Inc. discusses the status of relevant market characteristics.

The following information on rental apartments in Miami-Dade County is based on a quarterly survey prepared by CB Richard Ellis, Inc. and Reinhold P. Wolff Economic Research, Inc.

MARKET SUMMARY

Market statistics for Miami-Dade County and the North Miami Beach (subject) submarket is shown in the following table:


PRESIDENTIAL HOUSE		MARKET ANALYSIS

APARTMENT MARKET TRENDS


	Miami-Dade County					North Miami Beach Submarket
Date	Rent PSF		Occupancy			Rent PSF		Occupancy

1^st Qtr 2002	$	1.059		96.0	%	$	1.150		95.3	%
2^nd Qtr. 2002	$	1.020		98.0	%	$	1.104		92.5	%
3^rd Qtr. 2002	$	1.033		97.6	%	$	1.190		93.2	%
4^th Qtr. 2002	$	1.035		96.9	%	$	1.203		91.8	%
1^st Qtr 2003	$	1.082		95.3	%	$	1.200		91.6	%
2^nd Qtr 2003	$	1.079		95.6	%	$	1.187		93.5	%
3^rd Qtr 2003	$	1.101		95.7	%	$	1.208		95.3	%
4^th Qtr 2003	$	1.100		95.3	%	$	1.215		93.3	%
1^st Qtr 2004	$	1.134		94.9	%	$	1.192		94.1	%
2^nd Qtr 2004	$	1.147		95.9	%	$	1.241		95.3	%
3^rd Qtr 2004	$	1.139		96.0	%	$	1.235		95.8	%
4^th Qtr 2004	$	1.160		96.3	%	$	1.244		94.8	%
1^st Qtr 2005	$	1.138		96.4	%	$	1.182		97.7	%
2^nd Qtr 2005	$	1.141		98.2	%	$	1.195		97.2	%
3^rd Qtr 2005	$	1.187		98.4	%	$	1.156		97.6	%
4^th Qtr 2005	$	1.215		98.2	%	$	1.162		98.9	%
1^st Qtr 2006	$	1.255		98.1	%	$	1.242		98.6	%
2^nd Qtr 2006	$	1.266		99.0	%	$	1.239		98.0	%
3^rd Qtr 2006	$	1.300		98.9	%	$	1.227		98.6	%
4^th Qtr 2006	$	1.316		98.3	%	$	1.277		97.6	%
1^st Qtr 2007	$	1.378		96.5	%	$	1.241		95.6	%
2^nd Qtr 2007	$	1.388		97.2	%	$	1.244		95.5	%


Source: Reinhold Wolff

Compiled by: CB Richard Ellis, Inc.

Both the overall market area and the local submarket have maintained stabilized and/or improving occupancy rates over the past five and a half years. Over the same time frame, rental rates in the submarket has been following a moderately increasing trend with a noted decrease in the 1^st quarter 2005 due to higher-end units in the submarket being removed from rental operation and converted to condos. Rates began to climb again in the 1^st quarter of 2006 and for the most part have continued to increase, albeit at a slower pace in 2007 than experienced in the later part of 2006. The long-term trend is reflective of the overall strength of the apartment market in South Florida.

The primary driver behind the past high occupancy levels and increasing rents can be found in the shrinking supply of rental units throughout the tri-county area (Miami-Dade, Broward and Palm Beach). The chart below summarizes the reduction in rental units for the tri-county area since 2002.


PRESIDENTIAL HOUSE		MARKET ANALYSIS

APARTMENT INVENTORY


Year	Total Complexes		% Change			Total Units		% Change

2002		637		—			174,995		—
2003		615		(3.45	%)		167,218		(4.44	%)
2004		552		(10.24	%		161,621		(3.35	%)
2005		398		(27.90	%)		104,714		(35.2	%)

Total Change Since 2002				(37.52	%)				(40.16	%)


Source: McCabe Research & Consulting, LLC

Combine the unit reduction due to condo conversion with the lack of substantial new project development and the recent historical trend of high occupancy and increasing rents is easily explained. However, many projects were not successful with condo conversion plans and have reverted back to rental operations. The reversion trend is less apparent in Miami-Dade, as it was the first of the tri-counties to begin with the conversion trend and was basically out of this type inventory by the time the condo conversion market collapsed.

APARTMENT VACANCY

The vacancy rate in mature (18+ months old) rental apartment complexes in Miami-Dade County declined somewhat from 3.5% in February to 2.8% in May 2007, considerably higher than the 1.0% level of May 2006. The following is a summary of vacancy trends.

VACANCIES IN RENTAL APARTMENTS
BUILDINGS 18-MONTHS OLD OR OLDER
MIAMI-DADE COUNTY


	# UNITS		# UNITS		PERCENT
DATE	SURVEYED		VACANT		VACANT

May 2006		29,986		287		1.0	%
February 2007		30,430		1,066		3.5	%
May 2007		30,268		843		2.8	%


Compiled By: Reinhold P. Wolff Economic Research, Inc.

The vacancy rate was found to be the highest in the Northeast Miami area (Area 4) at 6.5%, followed by the North Miami Beach area (Area 1) at 4.5% and the Carol City area (Area 3) at 4.3%. Sunset/East Sunset/West Sunset submarkets reported vacancy below 1.0%.

At the end of March 2007, there were only 94 new, never before occupied rental units available in inventory throughout Miami-Dade County. This is slightly greater than the 61 units available in December 2006. Based on the estimated annual demand for about 6,200 new apartments in Miami-Dade County the inventory could total 3,100 units without being excessive.


PRESIDENTIAL HOUSE		MARKET ANALYSIS

Following is a summary of sub-market vacancy trends.

APARTMENT VACANCY RATES BY AREA
BUILDINGS 18-MONTHS OLD OR OLDER
MIAMI-DADE COUNTY
MAY 2007


	# UNITS		# VACANT		PERCENT
AREA	SURVEYED		UNITS		VACANT
AREA 1
North Miami Beach		2,741		124		4.5	%
AREA 2
North Miami		1,478		35		2.4	%
AREA 3
Carol City		1,469		63		4.3	%
AREA 3A
Miami Lakes		3,286		109		3.3	%
AREA 4
Northeast Miami		1,135		74		6.5	%
AREA 5
Northwest Miami		1,140		28		2.5	%
AREA 6
Hialeah		699		7		1.0	%
AREA 7
Miami Springs/Flagler North		2,984		81		2.7	%
AREA 10
Bayshore		493		15		3.0	%
AREA 8, 9, 11 & 12
Old Southwest/ N. Gables/ S. Gables/ S. Miami		1,804		26		1.4	%
AREA 13, 14, & 15
Sunset/ East Sunset/ West Sunset		1,161		3		0.3	%
AREA 16
Eastern Kendall		2,405		32		1.3	%
AREA 17 & 18
Kendall West		3,405		49		1.4	%
AREA 19, 20, & 21
Howard/Tamari/ W. Dade/ Perrine/ Cutler Ridge		1,135		48		4.2	%
AREA 22, 23, & 24
S. W. Dade/ Homestead		1,604		50		3.1	%
AREA 26
South Beach		1,851		52		2.8	%
AREA 27-30
Central Beach/ No. Beach/ Surfside/ Beach Areas No.		1,281		47		3.7	%
TOTAL MIAMI-DADE COUNTY		30,071		843		2.8	%


Compiled by: Reinhold P. Wolff Economic Research, Inc.

The subject property is located in the North Miami Beach submarket. The current vacancy rate in the North Miami Beach submarket is 4.5%. This vacancy rate is up from the 2.0% rate found in May 2006 and up from the 2.8% rate found in May of 2005. The overall market area has maintained stabilized and/or improving occupancy rates over the past five and a half years.


PRESIDENTIAL HOUSE		MARKET ANALYSIS

COMPETITIVE PROPERTIES

Comparable properties have been surveyed in order to identify the occupancy trends within the immediate submarket. The comparable data is summarized in the following table:

SUMMARY OF COMPARABLE APARTMENT RENTALS


Comp.
No.	Name	Location	Occupancy

1	Asbury Park	17600 NW 5th Avenue, Miami Gardens, FL	88%

2	Aventura Harbor	19455 NE 10th Avenue, Miami, FL	98%

3	Forest Place	1600 NE 135th Street, North Miami, FL	90%

4	Horizons North	665 Ives Dairy Road, North Miami Beach, FL	96%

5	Portofino at Biscayne	1820-1860 NE 142nd Street, North Miami, FL	100%

6	Somervale Apartments fka Oasis Club	21010 NW 7th Avenue, Miami, FL	88%


Subject	Presidential House	1572 NE 191st Street, North Miami Beach, Florida	95%


Compiled by CBRE

The comparable properties surveyed reported vacancy rates ranging from 0% to 12%, with an overall weighted average of 4.6%. The majority of the comparable properties surveyed reported occupancy rates of 90% or better, and all are currently in average condition. Comparable One is in the process of major renovations as the units become vacant and occupancy is held down due to the renovations. Comparable Six is slated for condo conversion and has intentionally held units from rental operations so as to have units available for sale. Excluding these comparables, the overall weighted average vacancy is 2.3%.


PRESIDENTIAL HOUSE		MARKET ANALYSIS

SUBJECT TRENDS AND PROJECTIONS

Occupancy

Occupancy rate is the relationship between the actual income received from a property and the income that would be received if the entire space were occupied. Consequently, the occupancy rate is a product of both (1) the relationship between the amount of occupied space in a building or market (physical) and (2) the relationship between the contract rent for the occupied building or market space and the total rent estimated for all space in the building or market (economic).

Subject’s Historical Trends

The subject has exhibited a relatively stable occupancy pattern in recent years, generally performing better than 95% since 2005. The subject’s occupancy is detailed in the following chart.

OCCUPANCY


Year	% PGI

2005		98	%
2006		96	%
2007 Annualized		95	%
June 2007 T-12		95	%
CBRE Estimate		95	%


Compiled by CBRE

Submarket Trends

Over the past two years, occupancy levels in the overall Miami-Dade market have ranged from approximately 96% to 99%, while the local submarket has performed similarly at approximately 94% to 99%. The lowest occupancy in the North Miami Beach submarket performance occurred in the first quarter 2003; however, this trend has reversed in subsequent quarters and is generally attributable to the lower tier submarket with lower rents and older properties, aimed at a lower income tenant profile. With no new construction planned, the submarket will likely continue to outperform the overall market in terms of occupancy for the near to mid term.

Conclusion

Based on the foregoing analysis, CBRE’s conclusion of stabilized occupancy for the subject is illustrated in the following table. This estimate considers both the physical and economic factors of the market.


PRESIDENTIAL HOUSE		MARKET ANALYSIS

OCCUPANCY CONCLUSIONS


Miami-Dade County	97.2	%
North Miami Beach Submarket	95.5	%
Rent Comparables	95.4	%
Subject’s Current Occupancy	94.6	%

Subject’s Stabilized Occupancy	95.0	%


Compiled by CBRE

Absorption

During the first quarter of 2007, 118 new rental apartment units were absorbed in Miami-Dade County. This is 2.4 times more than the 50 units absorbed in the preceding quarter but 35.9% less than the 184 units absorbed in the first quarter of 2006. The 486 new apartments absorbed during 2006 were 48.5% less than the 944 absorbed during the same period of 2005.

A total of 151 new apartment units were completed in Miami-Dade County during the first quarter 2007 while none were completed in the preceding quarter and none in the first quarter 2006. A total of 179 new apartments were started under construction in the first quarter of 2007 compared to none in the fourth quarter 2006 and in the first quarter 2006.

For the six-month period ending with March 2007, an average of only 28 new rental units was absorbed each month. A total of 94 new units were available at the end of March 2007, and this represents 3.4 months of supply at the pace of absorption over the past six months. It is estimated that there is an annual demand for about 6,200 apartment units in Miami-Dade County and at this demand level the market could support up to 3,100 available new units. During the six month period only 25 new apartment units were completed per month and 30 were started monthly during the period.

Only about 521 apartment units are under construction in Miami-Dade County. New rental apartment building activity remains notably below the estimated demand level for 6,200 units per year. Apartment vacancy rates should remain low (at shortage levels) in Miami-Dade County on an overall basis for the near-term future as new supply remains well under the indicated demand for additional apartments.

Lease-up Discount

The value indications employed for the subject property by the various approaches to value are reflective of a property operating at a stabilized level. A stabilized occupancy for the subject has been estimated to be 95%, while the subject is currently 94.6% occupied. As such, a discount for lease-up is not warranted.


PRESIDENTIAL HOUSE		MARKET ANALYSIS

New Construction

Following is a summary of new apartment projects under construction in South Florida Market:

FORECAST APARTMENT UNIT COMPLETIONS BY SUBMARKET
OCTOBER 2006 – SEPTEMBER 2007

PROJECT

ADDRESS

DEVELOPER

FINISHED

# UNITS

Los Suenos*

500 NW 36^thStreet, Miami

Pinnacle Housing Grp

08/06

179

Corinthian

7705 NW 22^ndAve, Miami

Pinnacle Housing Group

02/07

126

Miami Dade County

305

Harbour Cove*

100 NW 9^thTer, Hallandale Bch

Cornerstone Group

10/06

212

Crystal Lakes

3100 N 24^thAvenue, Hollywood

Pinnacle Housing Group

06/07

190

Village Green

8703 W. Sample Rd. Coral Sprg

Symphony Builders, LLC

11/06

Broward County

424

Heritage at Green Cay

Jog Rd., Boynton Beach

Housing Trust Group

05/07

160

Gables Marbella

22182 Bella Lago, Boca Raton

Gables Residential

06/07

297

Villa Toscana at Lakes of Laguna

4600 Portofina Way, WPB

Epoch Properties

12/06

396

Palm Beach County

853

TOTAL SOUTH FLORIDA AREA

1,582


*		Low Income Housing Tax Credit

Compiled by: M/PF Research, Inc..

New supply now under way in South Florida is well distributed among the regions three metropolitan areas – Dade County, Broward County and Palm Beach County. Palm Beach County registers a meaningfully higher percentage of the region’s ongoing apartment development activity with 853 units completed or under way for slightly more than one-half share (54%) of the region’s scheduled new supply. Apartment building activity in Broward currently accounts for 27% of scheduled new supply, while Dade County has a 19% share of South Florida recently completed or new construction.

Rental Rates

The overall average monthly rent for apartments in mature rental developments in Miami-Dade County has been on the rise over the past year. The table below presents the trends in rental rates for the various units for the Miami-Dade County over the past year:


PRESIDENTIAL HOUSE		MARKET ANALYSIS

APARTMENT RENT TRENDS
MIAMI-DADE COUNTY


	Average Monthly Rent						Percent Change
Unit Type	May-07		Feb-07		May-06		02/07-05/07			05/06-05/07

All Apartments	$	1,192	$	1,182	$	1,076		+ 0.8	%		+ 10.8	%
Efficiency	$	847	$	839	$	726		+ 1.0	%		+ 16.7	%
One-Bedroom	$	1,038	$	1,026	$	929		+ 1.2	%		+ 11.7	%
Two Bedroom	$	1,334	$	1,325	$	1,206		+ 0.7	%		+ 10.6	%
Three-Bedroom	$	1,592	$	1,600	$	1,452		-0.5	%		+ 9.6	%


Source: Reinhold Wolff

Compiled by: CB Richard Ellis, Inc.

The overall average monthly rent for apartments in mature rental developments in Miami-Dade County increased by $10 to a total of $1,192 from February to May 2007. The May 2007 overall average rent of $1,192 is 10.8% more than the $1,076 average rent found one year earlier and 18.3% higher than the $1,008 average rent found in May 2005, indicating an annual average compounded increase of 8.7% over the past two years. Over the past quarter, efficiency rents increased by $8 to $847, one-bedroom rents increased by $12 to $1,038, two-bedroom rents increased by $9 to $1,334 and three-bedroom rents declined by $8 to $1,592. Changes in projects participating in the surveys from one period to another can result in considerable fluctuations for efficiency and three-bedroom units where the supply is more limited. It should be noted that the rents revealed by these survey data are not necessarily representative of rents, which might be found in a new rental development. The rents are averaged from projects including some small and older complexes.

The current average monthly rental rate per unit in the North Miami Beach sub-market is $1,319 or $1.244 per square foot. This represents a 0.4% increase from the $1.239 average per square foot one year ago and a 4.1% increase from the $1.195 average per square foot two years ago. This indicates an average annual increase of 2% over the past two years.

The current average monthly rents in the sub-market are $1,050 or $1.270 per square foot for a one-bedroom unit, $1,473 or $1.227 per square foot for a two-bedroom unit and $1,585 or $1.225 per square foot for a three-bedroom unit.

It should be noted that the rents revealed by these survey data are not necessarily representative of rents that might be obtained in a new rental development. The rents are averaged from projects including many small and older complexes.

Distribution of Apartment Units

Following is a summary by number of bedrooms within the geographic areas of Miami-Dade County:


PRESIDENTIAL HOUSE		MARKET ANALYSIS

DISTRIBUTION OF APARTMENT UNITS
MIAMI-DADE COUNTY


PROJECT/	EFFICIENCY/			ONE			TWO			THREE
LOCATION	STUDIO			BEDROOM			BEDROOMS			BEDROOMS

AREA A		0.0	%		0.0	%		0.0	%		0.0	%
Homestead
AREA B		8.0	%		41.1	%		49.2	%		1.6	%
Redlands/Goulds
AREA C		2.9	%		43.2	%		44.6	%		9.3	%
Perrine/Cutler Ridge
AREA D		0.0	%		35.2	%		64.8	%		0.0	%
South Bayfront
AREA E		2.2	%		45.7	%		45.9	%		6.2	%
Kendall West
AREA F		0.9	%		45.9	%		46.3	%		6.9	%
Kendall
AREA G		0.0	%		31.8	%		67.3	%		0.9	%
West Dade
AREA H		0.5	%		31.6	%		59.8	%		8.1	%
West Miami/Sweetwater
AREA I		0.0	%		24.1	%		55.4	%		20.5	%
Deering Bay/Coral Gables/Coconut Grove
AREA J		1.2	%		49.9	%		46.0	%		3.0	%
Miami
AREA K		0.0	%		36.2	%		55.5	%		8.3	%
Doral
AREA L		0.0	%		45.0	%		54.1	%		0.9	%
Hialeah
AREA M		6.9	%		47.2	%		39.7	%		6.2	%
Opa Locka/Carol City
AREA N		4.3	%		58.7	%		37.1	%		0.0	%
Miami Shores/North Miami
AREA O		0.3	%		44.2	%		48.0	%		7.5	%
North Bayfront
AREA P		4.2	%		52.1	%		41.7	%		1.9	%
Key Biscayne/Fisher Island/Miami Beach
AREA Q		0.6	%		48.9	%		47.8	%		2.8	%

Miami Lakes
TOTAL MIAMI-DADE COUNTY		1.6	%		44.1	%		48.9	%		5.3	%


Source: Real Estate Market Profiles, The Meyers Group (Totals do not equal 100% due to exclusion of 4 BR units, 0.1%)

CONCLUSION

Demand for apartment buildings continues to be strong, particularly in luxury Class A projects. Class B & C projects are also receiving plenty of attention from investors looking for value-add opportunities where they can perform basic renovations and cosmetic upgrades and significantly enhance cash flows. Due to the uncertain supply of multi-family product due to reversions, rental rates have begun to stabilize from the highs of six to eight months ago and in some cases have shown declines from


PRESIDENTIAL HOUSE		SITE ANALYSIS

SITE ANALYSIS

The following chart summarizes the salient characteristics of the subject site.

SITE SUMMARY


Physical Description
Gross Site Area		5.79 Acres 252,212 Sq. Ft.
Net Site Area		5.79 Acres 252,212 Sq. Ft.
Primary Road Frontage		NE 191st Street
Excess Land Area		None
Surplus Land Area		None
Zoning District		RU-4, High Density Apartment House District
Flood Map Panel No. & Date		12025C0083J 2-Mar-94
Flood Zone		AE


Source: Various sources compiled by CBRE

LOCATION

The subject is on the south side of NE 191^st Street, about one-half mile north of Miami Gardens Drive. The street address is 1572 NE 191st Street. Ingress and egress is available to the site via two curb cuts along the southern right-of-way of NE 191^st Street.

ASSESSOR’S PARCEL NUMBER

The Miami-Dade County Tax Assessor’s parcel number is as follows: 30-2205-000-0235.

LAND AREA

The site is considered adequate in terms of size and utility. There is no unusable, excess or surplus land area.

SHAPE AND FRONTAGE

The site is irregular in shape and has adequate frontage along a secondary residential thoroughfare within the neighborhood.

INGRESS/EGRESS

Ingress and egress is available to the site via two curb cuts along the southern right-of-way of NE 191^st Street.


PRESIDENTIAL HOUSE		SITE ANALYSIS

NE 191^st Street, at the subject, is an east/west residential street that is improved with one lane of traffic in each direction. Street improvements include asphalt paving, open drainage and sidewalks, and street lighting. Street parking is not permitted.

Please refer to the prior aerial exhibit for the layout of the streets that provide access to the subject.

TOPOGRAPHY AND DRAINAGE

The site is generally level and at street grade. The topography of the site is not seen as an impediment to the development of the property. During our inspection of the site, we observed no drainage problems and assume that none exist.

SOILS

A soils analysis for the site has not been provided for the preparation of this appraisal. In the absence of a soils report, it is a specific assumption that the site has adequate soils to support the highest and best use.

EASEMENTS AND ENCROACHMENTS

Based on an inspection and review of the site plan, the property does not appear to be adversely affected by any easements or encroachments. It is recommended that the client/reader obtain a current title policy outlining all easements and encroachments on the property, if any, prior to making a business decision.

COVENANTS, CONDITIONS AND RESTRICTIONS

There are no known covenants, conditions and restrictions impacting the site that are considered to affect the marketability or highest and best use.

UTILITIES AND SERVICES

The site is within the jurisdiction of North Miami Beach and is provided all municipal services, including police, fire and refuse garbage collection. All utilities are available to the site in adequate quality and quantity to service the highest and best use.

FLOOD ZONE

According to flood hazard maps published by the Federal Emergency Management Agency (FEMA), the site is within Zone AE, as indicated on the indicated Community Map Panel No. 12025C0083J.

FEMA Zone AE: Special flood hazard areas subject to inundation by the 100-year flood determined in a Flood Insurance Study by detailed methods. Base flood


PRESIDENTIAL HOUSE		SITE ANALYSIS

elevations are shown within these zones. Mandatory flood insurance purchase requirements apply.

ENVIRONMENTAL ISSUES

CBRE has not observed and is not qualified to detect, the existence of potentially hazardous material or underground storage tanks which may be present on or near the site. The existence of hazardous materials or underground storage tanks may affect the value of the property. For this appraisal, CBRE has specifically assumed that the property is not affected by any hazardous materials that may be present on or near the property.

ADJACENT PROPERTIES

The adjacent land uses are summarized as follows:


North:		Condominiums, followed by the Presidential Golf Course
South:		Lake, followed by condos
East:		Jade Winds Condos
West:		New Horizons Condos

The adjacent properties are improved with developments similar in age to the subject, as well as overall condition.

CONCLUSION

The site is located in an area dominated by residential improvements. The majority of development is mid-rise condominiums. Commercial support developments are generally along Miami Gardens, just south of the subject and along Biscayne Boulevard, about one-mile east of the subject. The size of the subject site is typical for the area and use, and there are no known detrimental uses in the immediate vicinity. Overall, there are no known factors which are considered to prevent the site from development to its highest and best use, as if vacant, or adverse to the existing use of the site.


PRESIDENTIAL HOUSE		IMPROVEMENTS ANALYSIS

IMPROVEMENTS ANALYSIS

The following chart depicts a summary of the improvements.

IMPROVEMENTS SUMMARY


Property Type		Apartment (Multi-family Mid/High Rise)
Number of Buildings		4
Number of Stories		3 & 4
Gross Building Area		184,650 SF
Net Rentable Area		183,150 SF
Number of Units		203
Average Unit Size		902 SF
Development Density		35.1 Units/Acre
Parking Improvements		Open
Total Spaces:		233
Parking Ratio (spaces/unit)		1.15


		No. of		Percent of			Unit Size
Unit Mix	Comments	Units		Total			(SF)		NRA (SF)

1BR/1BA			113		55.7	%		750		84,750
1BR/1.5BA			48		23.6	%		1,000		48,000
2BR/2BA			42		20.7	%		1,200		50,400

Total/Average:			203		100.0	%		902		183,150


Source: Various sources compiled by CBRE

Building plans and specifications were not provided for the preparation of this appraisal. The following is a description of the subject improvements and basic construction features derived from CBRE’s inspection.

YEAR BUILT

The subject was built in 1966 and continues to be renovated and upgraded. Renovations completed include new appliances in 10 units. As units become vacant, new appliances, refinished countertops and carpeting are being installed.

FOUNDATION

The foundation consists of poured reinforced concrete/perimeter footings and column pads.

CONSTRUCTION COMPONENTS

The construction components include a concrete block frame with concrete truss and joist floor structure and floor deck.


PRESIDENTIAL HOUSE		IMPROVEMENTS ANALYSIS

FLOOR STRUCTURE

The floor structure is summarized as follows:


Ground Floor:		Concrete slab on compacted fill

Other Floors:		Concrete

EXTERIOR WALLS

The exterior wall structure is concrete block frame with painted stucco veneer and concrete accents and trim. The buildings have single pane aluminum frame windows.

ROOF COVER

All buildings have flat roofs with a roll composition shingle covering.

ELEVATOR/STAIR SYSTEM

Two sets of stairwells are located at each end of the buildings. The buildings also include six passenger elevators (1,750 lbs.) generally located in the center of the buildings.

HVAC

The HVAC system is assumed to be in good working order and adequate for the building.

UTILITIES

Each unit is individually metered for electrical usage. Current operations indicate the landlord is responsible for water, sewer and trash removal costs to the individual units with the tenants paying all other utility costs.

SECURITY

The improvements are encircled by fencing, although there are no security gates at the vehicle access points. Although the management office features a security alarm system, there is no alarm oriented security system for the individual units.

FIRE PROTECTION

The improvements are not fire sprinklered, although all units are equipped with smoke detectors. It is assumed the improvements have adequate fire alarm systems, fire exits, fire extinguishers, fire escapes and/or other fire protection measures to meet local fire marshal requirements.


PRESIDENTIAL HOUSE		IMPROVEMENTS ANALYSIS

PROJECT AMENITIES

The project amenities include one community pool, children’s playground (courtyard) and combination leasing office/clubhouse. The clubhouse facility includes a full-size kitchen and small banquet room with tables and chairs for dining. Additionally, the project features six laundry facilities each equipped with approximately 6 clothes washers and dryers (three each).

UNIT AMENITIES

Kitchens

Each unit features a full appliance package including an electric range/oven, vent-hood in the renovated units, frost-free refrigerator, dishwasher (in the 1/1¹/2 and 2/2’s), and built-in microwave oven in the renovated units. The majority of the units have not been upgraded and there is no vent hood or microwave oven in these units. Additionally, each unit features laminate cabinets with Formica countertops and vinyl or ceramic tile flooring in the kitchen area. According to management, the project has experienced an adequate on-going replacement program for all kitchen appliances and no appliances are known to be inoperable.

Bathrooms

The bathrooms within each unit feature combination tub/showers with ceramic tile wainscot. Additionally, each bathroom features a commode, laminate cabinet with Formica counter and built-in porcelain sink, wall-mounted medicine cabinet with vanity mirror and vinyl or ceramic tile flooring.

Interior Lighting

Each unit features incandescent lighting in appropriate interior and exterior locations with fluorescent lighting in the kitchen area.

Patios, Balconies and Storage

All units include a private patio or balcony area.

SITE AMENITIES

Parking and Drives

The project features adequate surface parking, including reserved handicap spaces. Access to the property is controlled via electronic security gates located at the primary entry point. All parking spaces and vehicle drives are asphalt paved and considered to be in average condition.


PRESIDENTIAL HOUSE		IMPROVEMENTS ANALYSIS

Landscaping

Landscaping is considered to be in average condition and well maintained.

QUALITY AND STRUCTURAL CONDITION

The overall quality of the project is considered average for the neighborhood and age. CBRE did not observe any evidence of structural fatigue and the improvements appear structurally sound for occupancy. However, CBRE is not qualified to determine structural integrity and it is recommended that the client/reader retain the services of a qualified, independent engineer or contractor to determine the structural integrity of the improvements prior to making a business decision.

FUNCTIONAL UTILITY

All of the floor plans are considered to feature functional layouts and the layout of the overall project is considered functional in utility. Therefore, the unit mix is also functional and no conversion is warranted to the existing improvements.

PROJECT DENSITY

The project’s development density is commensurate with other competing properties in the neighborhood.

ADA COMPLIANCE

All common areas of the property appear to have handicap accessibility and all first floor units are handicap accessible. The client/reader’s attention is directed to the specific limiting conditions regarding ADA compliance.

FURNITURE, FIXTURES AND EQUIPMENT

The apartment units are rented on an unfurnished basis. However, miscellaneous maintenance tools, pool furniture, leasing office furniture, recreational room and clubhouse furniture, and various exercise machines are examples of personal property associated with and typically included in the sale of multifamily apartment complexes. The personal property items contained in the project are not considered to contribute significantly to the overall value of the real estate.

ENVIRONMENTAL ISSUES

CBRE has not observed and is not qualified to detect the existence of any potentially hazardous materials such as lead paint, asbestos, urea formaldehyde foam insulation, or other potentially hazardous construction materials on or in the improvements. The existence of such substances may affect the value of the property. For the purpose of this assignment, we have specifically assumed that any hazardous materials that would cause a loss in value do not affect the subject.


PRESIDENTIAL HOUSE		ZONING

ZONING

The following chart summarizes the subject’s zoning requirements.


ZONING SUMMARY

Current Zoning		RU-4, High Density Apartment House District

Legally Conforming		No, leaglly non-conforming due to parking

Uses Permitted		Multi-family apartment houses with less than 11 units per building (site plan review needed for more units); uses permitted in the RU-1 thru RU-3 and the RU-TH districts

Zoning Change		Not likely


Category		Zoning Requirement

F. A. R.		1 story .40; plus .20 for each add’l story, max F.A.R. of 2.00

Min lot width and area		100 feet and 10,000 square feet, resp.

Max lot coverage		40% of total lot area

Front setback		25 feet upto 35 feet in bldg. height; over 35 feet high, increase by 40% of add’l bldg height, max setback 50 feet

Rear setback		25 feet upto 35 feet in bldg. height; over 35 feet high, increase by 40% of add’l bldg height

Side yard setbacks		To be determined by a 63º line projected from side property line towards center of site; min setback 25 feet

Setback between bldgs		20 feet minimum

Height limit		Bldgs over 100 feet high on sites that abut right-of-way 100 feet or wider width must satisfy 12:00 noon shadow/41º sun angle requirement. All other sites, bldgs must be no higher than width of right-of-way sites abut

Max no. dwelling units		50 units per acre or 871.2 SF of lot area per unit

Minimum Open Space		40% of total lot area

Parking		1.5 spaces per 1-bedroom or efficiency unit, 1.75 foreach 2-bedroom unit and 2 for each 3-bedroom unit or more (Required - 326 spaces)

Subject’s Actual Parking		1.15 spaces/unit


Source: Miami-Dade County Planning & Zoning Dept.


PRESIDENTIAL HOUSE		TAX AND ASSESSMENT DATA

TAX AND ASSESSMENT DATA

Real estate in Miami-Dade County is assessed at 100% of the assessor’s estimated “Just Value”. Just Value has been equated to market value less closing costs. The assessment for real estate purposes is made as of January 1 of each year. The county commission sets the millage rate to be used in calculating the tax bill in September or October of each year. The Miami-Dade County tax collector issues the tax bills providing for a 4% discount if the bill is paid in November, 3% for bills paid in December, 2% for bills paid in January, and a 1% discount for February payment. All tax bills are delinquent after March 31 of each year.

Prudent management normally pays taxes in November in order to save 4% on the tax bill. In our income projections, we have assumed the owner will take advantage of the early payment discount. The subject’s market value, assessed value, and taxes are summarized below, and do not include any furniture, fixtures and equipment.

AD VALOREM TAX INFORMATION


Assessor’s Market Value		2005			2006			Pro Forma

30-2205-000-0235		$	9,084,200		$	9,900,000


Subtotal		$	9,084,200		$	9,900,000		$	13,200,000
Assessed Value @			100	%		100	%		100	%

		$	9,084,200		$	9,900,000			$13,200,000

General Tax Rate	(per $1,000 A.V.)		3.000000			21.316300			21.316300

General Tax:		$	27,253		$	211,031		$	281,375
Special Assessments:			—			—			—


Effective Tax Rate	(per $1,000 A.V.)		3.000000			21.316300			21.316300

Gross Taxes			27,253			211,031			281,375
Less Prepayment Discount 4.00%			(1,090	)		(8,441	)		(11,255	)

Total Real Estate Taxes			26,162			202,590			270,120
Personal Property Taxes			3,577			2,571			2,571

Total Taxes		$	29,739		$	205,161		$	272,691


Source: Assessor’s Office

The property appraiser’s office has assessed the subject property for 2006 at $9,900,000. Based on the 2006 millage rate, the subject’s gross taxes are estimated at $211,031. Assuming a 4.0% discount for early payment and adding the personal property taxes, if applicable, the amount would be reduced to $205,161or $1,011 per unit, including personal property taxes. According to a


PRESIDENTIAL HOUSE		TAX AND ASSESSMENT DATA

representative of Miami-Dade County Property Appraisers office, there are no delinquent property taxes encumbering the subject. The next re-assessment of the subject will be in January 2008, with tax bills presented to property owners in September or October 2008.

TAX COMPARABLES

As a crosscheck to the subject’s applicable real estate taxes, CBRE has reviewed the real estate tax information according to the Miami-Dade County for comparable properties in the market area. The following table summarizes the comparables employed for this analysis:

AD VALOREM TAX COMPARABLES


									1820-1860
	17600 NW		19455 NE		1600 NE		665 Ives		NE 142nd		21010 NW				Subject Pro
Comparable Rental	5th Avenue		10th Avenue		135th Street		Dairy Road		Street		7th Avenue		Subject		Forma

Year Built		1972		1986		1971		1988		1974		1974		1966		1966
No. Units		234		690		202		276		866		412		203		203
Tax Year		2006		2006		2006		2006		2006		2006		2006		2007
Total Assessed Value	$	10,700,000	$	33,800,000	$	12,524,000	$	21,900,000	$	60,975,000	$	18,981,098	$	9,900,000	$	13,200,000
AV Per Unit	$	45,726	$	48,986	$	62,000	$	79,348	$	70,410	$	46,071	$	48,768	$	65,025
Total Taxes	$	251,507	$	701,242	$	329,088	$	454,355	$	1,602,216	$	445,080	$	27,253	$	281,375
Per Unit	$	1,075	$	1,016	$	1,629	$	1,646	$	1,850	$	1,080	$	134	$	1,386


Source: Assessor’s Office

CONCLUSION

The tax comparables reflected an assessed value range from $45,726 to $79,348 per unit and total taxes of $1,016 to $1,646 per unit. These comparables are similar Class B/C apartment complexes located in proximity to the subject and similar in condition to the subject property. Generally, the tax appraisers’ office will assess the property based on 70% to 85% of the recorded purchase price of the property. The current assessed value of $9,900,000 (56.3% of the estimated value) is low and will likely be adjusted upward during the next re-assessment period. As such we have not relied on the current estimate in our report when estimating the market value of the property.

The following schedule summarizes the ratio of assessed value to sales price for three improved sales in Miami-Dade County.


PRESIDENTIAL HOUSE		TAX AND ASSESSMENT DATA

RATIO OF ASSESSED VALUE TO SALE PRICE


	1595 NE 135th			4540 NW 107th			1300 West 54th						Subject Pro
Comparable Sale	Street			Avenue			Street			Subject			Forma

Year Built		1971			1998			1969			1966			1966
No. Units		127			258			258			203			203

Tax Year		2006			2006			2006			2006			2007
Total Assessed Value	$	7,700,000		$	46,000,000		$	17,000,000		$	9,900,000		$	13,200,000
Date of Sale	Aug-05			Oct-05			Jul-05

Sales Price	$	11,100,000		$	57,300,000		$	21,177,500

AV Ratio		69	%		80	%		80	%

Estimated Value of Subject										$	17,600,000		$	17,600,000

AV Ratio											56	%		75	%


Source: Assessor’s Office

Based on the above analysis, we have estimated that the subject building will be reassessed upon the sale of the property at approximately 75% of our estimated value. Based on the above analysis we have estimated the total assessment and real estate tax burden in the first year of our valuation projection as stabilized as follows:

SUBJECT AD VALOREM TAX EXPENSE


203 Units x $65,025	per unit				$	13,200,000
Combined Millage Rate						0.02131630

Gross Real Estate Taxes					$	281,375
Less Prepayment Discount		4.00	%	(	$	11,255	)

Net Real Estate Taxes					$	270,120
Plus: Personal Property Taxes					$	2,571

Total Taxes					$	272,691

Taxes per Unit					$	1,343


Source: Compiled by CBRE

The above estimated assessment and tax burden for the subject property equates to $65,025 per unit and taxes of $1,343 per unit, within the range of the tax comparables and reasonable based on similar reassessments in the marketplace. Should the subject property sell at or near our value estimate, the assessed value will be adjusted. The Property Appraiser will have this information and will adjust the assessed value accordingly. Although sales of similar properties have some effect on changes in the assessed value, the actual sale of the property being assessed has more significance and a change is almost assured.

Assessments in Miami-Dade County are reviewed annually and are subject to modification. Considering the assessment of comparable properties, sales of similar properties, assessed value


PRESIDENTIAL HOUSE		HIGHEST AND BEST USE

HIGHEST AND BEST USE

In appraisal practice, the concept of highest and best use represents the premise upon which value is based. The four criteria the highest and best use must meet are:

	•		legal permissibility;

	•		physical possibility;

	•		financial feasibility; and

	•		maximum profitability.

Highest and best use analysis involves assessing the subject both as if vacant and as improved.

AS VACANT

Legal Permissibility

The legally permissible uses were discussed in detail in the Site Analysis and Zoning Sections.

Physical Possibility

The subject is adequately served by utilities, has an adequate shape and size, sufficient access, etc., to be a separately developable site. The subject site would reasonably accept a site layout for any of the legally probable uses. There are no known physical reasons why the subject site would not support any legally probable development. The existence of the present development on the site provides additional evidence for the physical possibility of development.

Financial Feasibility

The determination of financial feasibility is dependent primarily on the relationship of supply and demand for the legally probable land uses versus the cost to create the uses. As discussed in the market analysis of this report, the subject apartment market is generally stabilized. Development of new apartment properties has occurred in the past few years. Further, within the subject market, there are no proposed or under construction rental apartment projects in the competitive market. These factors indicate that it would be financially feasible to complete a new apartment project if the site acquisition cost was low enough to provide an adequate developer’s profit.

Maximum Profitability

The final test of highest and best use of the site as though vacant is that the use be maximally productive, yielding the highest return to the land. In the case of the subject as if vacant, the analysis has indicated that a new apartment project would be most appropriate.


PRESIDENTIAL HOUSE		HIGHEST AND BEST USE

CONCLUSION: HIGHEST AND BEST USE AS VACANT

Based on the information presented above and upon information contained in the market and neighborhood analysis, we conclude that the highest and best use of the subject as if vacant, would be the development an apartment property. Our analysis of the subject and its respective market characteristics indicate the most likely buyer, as if vacant, would be an investor (land speculation) or a developer.

AS IMPROVED

Legal Permissibility

As discussed, the subject site’s zoning and legal restrictions permit a variety of land uses. The site has been improved with an apartment development that is a legal, nonconforming use due to the number of parking spaces.

Physical Possibility

The physical characteristics of the subject improvements were discussed in detail in the improvements analysis. Both the layout and positioning of the improvements are considered functional for apartment use. While it would be physically possible for a wide variety of uses, based on the legal restrictions and the design of the improvements, the continued use of the property for apartment users would be the most functional use.

Financial Feasibility

The financial feasibility of an apartment property is based on the amount of rent which can be generated, less operating expenses required to generate that income; if a residual amount existing, then the land is being put to a productive use. As will be indicated in the income capitalization approach, the subject is producing a positive net cash flow and continued utilization of the improvements for apartment purposes is considered financially feasible.

Maximum Profitability

The maximally profitable use of the subject as improved should conform to neighborhood trends and be consistent with existing land uses. Although several uses may generate sufficient revenue to satisfy the required rate of return on investment and provide a return on the land, the single use that produces the highest price or value is typically the highest and best use. As shown in the applicable valuation sections, buildings that are similar to the subject have been acquired or continue to be used by apartment owners/tenants. Two of the comparable sales were been acquired for conversion to condominiums; however, this market has softened considerably in recent months and conversion to condos is not a financially feasible alternative for the subject. The other comparables would indicate


PRESIDENTIAL HOUSE		APPRAISAL METHODOLOGY

APPRAISAL METHODOLOGY

In appraisal practice, an approach to value is included or omitted based on its applicability to the property type being valued and the quality and quantity of information available.

COST APPROACH

The cost approach is based upon the proposition that the informed purchaser would pay no more for the subject than the cost to produce a substitute property with equivalent utility. This approach is particularly applicable when the property being appraised involves relatively new improvements that represent the highest and best use of the land, or when it is improved with relatively unique or specialized improvements for which there exist few sales or leases of comparable properties.

SALES COMPARISON APPROACH

The sales comparison approach utilizes sales of comparable properties, adjusted for differences, to indicate a value for the subject. Valuation is typically accomplished using physical units of comparison such as price per square foot, price per unit, price per floor, etc., or economic units of comparison such as gross rent multiplier. Adjustments are applied to the physical units of comparison derived from the comparable sale. The unit of comparison chosen for the subject is then used to yield a total value. Economic units of comparison are not adjusted, but rather analyzed as to relevant differences, with the final estimate derived based on the general comparisons.

INCOME CAPITALIZATION APPROACH

The income capitalization approach reflects the subject’s income-producing capabilities. This approach is based on the assumption that value is created by the expectation of benefits to be derived in the future. Specifically estimated is the amount an investor would be willing to pay to receive an income stream plus reversion value from a property over a period of time. The two common valuation techniques associated with the income capitalization approach are direct capitalization and the discounted cash flow (DCF) analysis.

METHODOLOGY APPLICABLE TO THE SUBJECT

In valuing the subject, all three approaches are applicable and have been utilized. In addition, the replacement cost has been utilized within the analysis of insurable value.


PRESIDENTIAL HOUSE		LAND VALUE

The sales utilized represent the best data available for comparison with the subject and were selected from within Miami-Dade County. These sales were chosen based upon similar uses after the sale.

DISCUSSION/ANALYSIS OF LAND SALES

Land Sale One

This comparable represents 2.8293 acres at 3372 N.W. 17th Avenue. The site has a rectangular shape with generally level topography and exhibits the following frontage: N.W. 33rd Street and N.W. 17th Avenue. At the time of the sale, the property was improved with a vacated building. The site is zoned R-4 & G/I, and the proposed use is for affordable housing. All utilities were available to the site. The property sold in March 2006 for $6,800,000, or $16,038 per proposed unit ($2,403,421 per acre). 424 units are proposed, for an overall density of 149.86 units per acre.

The upward market conditions (time) adjustment of 40% reflects the improved market conditions since the date of sale. The -5% downward adjustment for size reflects this comparable’s superior feature with respect to economies of scale regarding parcel size. With respect to zoning/density, this comparable was considered superior in this aspect and received a downward adjustment of
-10% because of a less restrictive zoning classification. Overall, this comparable was deemed superior in comparison to the subject and a downward net adjustment was warranted to the sales price indicator.

Land Sale Two

This comparable represents 0.8039 acres at 1551 N.W. 36th Street. The site has an irregular shape with generally level topography and exhibits the following frontage: N.W. 36th Street/N.W. 37th Street and N.W. 15th Avenue. At the time of the sale, the property was improved with a 2 story building with parking lot. The site is zoned C-2, and the proposed use is to 92-unit residential development. All utilities were available to the site. The property sold in January 2007 for $2,749,000, or $29,880 per proposed unit ($3,419,580 per acre). 92 units are proposed, for an overall density of 114.44 units per acre.

The -20% downward adjustment for size reflects this comparable’s superior feature with respect to economies of scale. With respect to zoning/density, this comparable was considered superior in this aspect and received a downward adjustment of -5% because of less restrictive zoning density. Overall, this comparable was deemed superior in comparison to the subject and a downward net adjustment was warranted to the sales price indicator.

Land Sale Three

This comparable represents 8.96 acres at 12000 NE 16th Avenue. The site has a rectangular shape with level, at street grade topography and exhibits the following frontage: NE 16th Avenue and NE 14th Avenue. At the time of the sale, the property was improved with a mobile home park. The site is


PRESIDENTIAL HOUSE		LAND VALUE

LAND SALES ADJUSTMENT GRID


Comparable Number	1	2	3	Subject
Transaction Type	Sale	Sale	Sale	—
Transaction Date	Mar-06	Jan-07	Feb-07	—
Zoning	R-4 & G/I	C-2	RU-3M	RU-4, High Density
Density (UPA)	149.86	114.44	25.11	35.06
Actual Sale Price	$6,800,000	$2,725,000	$5,100,000	—
Adjusted Sale Price¹	$6,800,000	$2,749,000	$5,100,000	—
Size (Acres)	2.83	0.80	8.96	5.79
Size (SF)	123,244	35,018	390,298	252,212
Price Per Acre	$2,403,421	$3,419,580	$569,196	—
Price Per SF	$55.18	$78.50	$13.07	—
Price Per Unit	$16,038	$29,880	$22,667	—

Price ($ Per Unit)	$16,038	$29,880	$22,667

Property Rights Conveyed	0%	0%	0%
Financing Terms¹	0%	0%	0%
Conditions of Sale	0%	0%	0%
Market Conditions (Time)	40%	0%	0%

Subtotal	$22,453	$29,880	$22,667

Size	-5%	-20%	5%
Location	0%	0%	0%
Zoning/Density	-10%	-5%	0%
Utilities	0%	0%	0%
Highest & Best Use	0%	0%	0%

Total Other Adjustments	-15%	-25%	5%

Value Indication for Subject	$19,085	$22,410	$23,800

¹ Transaction amount adjusted for cash equivalency and/or development costs (where applicable) Compiled by CBRE

CONCLUSION

Based on the preceding analysis, Comparable Three was the most representative of the subject site, and warranted greatest consideration because it is a recent transaction that required minimal adjustments when compared to the subject. In conclusion, a price per unit indication towards the upper end of the range was most appropriate for the subject. The following table presents the valuation conclusion:


PRESIDENTIAL HOUSE		COST APPROACH

COST APPROACH

In estimating the replacement cost new for the subject, the following methods/data sources have been utilized (where available):

•

the comparative unit method has been employed, utilizing the Marshall Valuation Service (MVS) cost guide, published by Marshall and Swift, LLC;

MARSHALL VALUATION SERVICE

Direct Cost

Salient details regarding the direct costs are summarized in the Cost Approach Conclusion at the end of this section. The MVS cost estimates include the following:

	1.		average architect’s and engineer’s fees for plans, plan check, building permits and survey(s) to establish building line;

	2.		normal interest in building funds during the period of construction plus a processing fee or service charge;

	3.		materials, sales taxes on materials, and labor costs;

	4.		normal site preparation including finish grading and excavation for foundation and backfill;

	5.		utilities from structure to lot line figured for typical setback;

	6.		contractor’s overhead and profit, including job supervision, workmen’s compensation, fire and liability insurance, unemployment insurance, equipment, temporary facilities, security, etc.;

	7.		site improvements (included as lump sum additions); and

	8.		initial tenant improvement costs are included in MVS cost estimate. However, additional lease-up costs such as advertising, marketing and leasing commissions are not included.

Base building costs (direct costs) are adjusted to reflect the physical characteristics of the subject. Making these adjustments, including the appropriate local and current cost multipliers, the direct building cost is indicated.

Additions

Items not included in the direct building cost estimate include parking and walks, signage, landscaping, and miscellaneous site improvements. The cost for these items is estimated separately using the segregated cost sections of the MVS cost guide.

Indirect Cost Items

Several indirect cost items are not included in the direct building cost figures derived through the MVS cost guide. These items include developer overhead (general and administrative costs), property taxes, legal and insurance costs, local development fees and contingencies, lease-up and marketing costs and miscellaneous costs. Research into these cost items indicates that an average property requires an allowance of about 25% to 35% of the total direct costs.


PRESIDENTIAL HOUSE		COST APPROACH

MVS Conclusion

The concluded direct and indirect building cost estimate obtained via the MVS cost guide (Section 12, Page 14) is illustrated as follows:

MARSHALL VALUATION SERVICE COST SCHEDULE


Primary Building Type:	Apartment	Height per Story:	8’
Effective Age:	26 YRS	Number of Buildings:	4
Quality/Condition:	Average	Gross Building Area:	184,650 SF
Exterior Wall:	Concrete Block	Net Rentable Area:	183,150 SF
Number of Units:	203	Average Unit Size:	902 SF
Number of Stories:	3 & 4	Average Floor Area:	N/A


MVS Sec/Page/Class		12/14/C-Good
Building Component		Multiple
		Residences
Component Sq. Ft.		184,650 SF
Base Square Foot Cost		$	81.37

Square Foot Refinements
Heating and Cooling		$	0.00
Sprinklers		$	0.00
Appliances	$2,500 each	$	2.75
Patios & Balconies		$	3.74

Subtotal		$	87.86

Height and Size Refinements
Number of Stories Multiplier			1.00
Height per Story Multiplier			1.00
Floor Area Multiplier			1.00

Subtotal		$	87.86

Cost Multipliers
Current Cost Multiplier			1.05
Local Multiplier			0.94

Final Square Foot Cost		$	86.72

Base Component Cost		$	16,012,162


Base Building Cost	(via Marshall Valuation Service cost data)	$	16,012,162
Additions
Signage, Landscaping & Misc. Site Improvements		$	150,000
Parking/Walks		$	1,000,000
Other		$	0

Direct Building Cost		$	17,162,162

Indirect Costs	30.0% of Direct Building Cost	$	5,148,649

Direct and Indirect Building Cost		$	22,310,810
Rounded		$	22,311,000


Compiled by CBRE

DIRECT AND INDIRECT COST CONCLUSION

The indicated direct and indirect building costs for the subject are illustrated as follows:


PRESIDENTIAL HOUSE		COST APPROACH

DIRECT AND INDIRECT COST CONCLUSION


Source	Total		Per Unit		Per SF

MVS Cost Guide	$	22,311,000	$	109,906	$	120.83
CBRE Estimate	$	22,311,000	$	109,906	$	120.83


Compiled by CBRE

The MVS cost guide was given most consideration towards a cost conclusion for the subject.

ENTREPRENEURIAL PROFIT

Entrepreneurial profit represents the return to the developer, and is separate from contractor’s overhead and profit. This line item, which is a subjective figure, tends to range from 5% to 15% of total direct and indirect costs for this property type, based on discussions with developers active in this market.

ACCRUED DEPRECIATION

There are essentially three sources of accrued depreciation:

	1.		physical deterioration, both curable and incurable;

	2.		functional obsolescence, both curable and incurable; and

	3.		external obsolescence.

Physical Deterioration

The subject’s physical condition was detailed in the improvements analysis. Curable deterioration affecting the improvements results from deferred maintenance and, if applicable, was previously discussed. With regard to incurable deterioration, the subject improvements are considered to have deteriorated due to normal wear and tear associated with natural aging. The following chart provides a summary of the remaining economic life.

ECONOMIC AGE AND LIFE


Actual Age	41 Years
Effective Age	26 Years
MVS Expected Life	55 Years
Remaining Economic Life	29 Years
Accrued Physical Incurable Depreciation		47.3	%


Compiled by CBRE

Functional Obsolescence

Based on a review of the design and layout of the improvements, no forms of curable functional obsolescence were noted. Because replacement cost considers the construction of the subject


PRESIDENTIAL HOUSE		COST APPROACH

improvements utilizing modern materials and current standards, design and layout, functional incurable obsolescence normally is not applicable.

External Obsolescence

Based on a review of the local market and neighborhood, no forms of external obsolescence affect the subject.

COST APPROACH CONCLUSION

The value estimate is calculated as follows.

COST APPROACH CONCLUSION


Building Type:	Apartment	Height per Story:	8’
Effective Age:	26 YRS	Number of Buildings:	4
Quality/Condition:	Average	Gross Building Area:	184,650 SF
Exterior Wall:	Concrete Block	Net Rentable Area:	183,150 SF
Number of Units:	203	Average Unit Size:	902 SF
Number of Stories:	3 & 4	Average Floor Area:	N/A


Direct and Indirect Building Cost					$	22,311,000

Entrepreneurial Profit	10.0% of Total Building Cost				$	2,231,100


Replacement Cost New					$	24,542,100


Accrued Depreciation
Incurable Physical Deterioration	47.3% of Replacement Cost New less	$	(11,601,720	)
	Curable Physical Deterioration
Functional Obsolescence		$	0
External Obsolescence		$	0

Total Accrued Depreciation	47.3% of Replacement Cost New				$	(11,601,720	)
Depreciated Replacement Cost					$	12,940,380


Land Value					$	4,700,000

Stabilized Value Indication					$	17,640,380
Curable Physical Deterioration					$	0
Lease-Up Discount					$	0

Value Indication					$	17,640,380
Rounded					$	17,600,000
Value Per Unit					$	86,700


Compiled by CBRE


PRESIDENTIAL HOUSE		INSURABLE VALUE

INSURABLE VALUE

As part of the client’s requested scope of work, an estimate of insurable value is provided herein. CBRE has followed traditional appraisal standards to develop a reasonable calculation based upon industry practices and industry accepted publications such as Marshall Valuation Service. The methodology employed is a derivation of the cost approach and is not reliable for insurable value estimates. Actual construction costs and related estimates can vary greatly from this estimate.

The insurable value estimate presented herein is intended to reflect the value of the destructible portions of the subject, based on the replacement of physical items that are subject to loss from hazards (excluding indestructible items such as basement excavation, foundation, site work, land value and indirect costs). In the case of the subject, this estimate is based upon the base building costs (direct costs) as obtained via the Marshall Valuation Service handbook, with appropriate deductions.

This analysis should not be relied upon to determine proper insurance coverage as only consultants considered experts in cost estimation and insurance underwriting are qualified to provide an insurable value. It is provided to aid the client/reader/user as part of their overall decision making process and no representations or warranties are made by CBRE regarding the accuracy of this estimate and it is strongly recommend that other sources be utilized to develop any estimate of insurable value.


PRESIDENTIAL HOUSE		INSURABLE VALUE

INSURABLE VALUE CONCLUSION


Building Type:	Apartment	Height per Story:	8’
Effective Age:	26 YRS	Number of Buildings:	4
Quality/Condition:	Average	Gross Building Area:	184,650 SF
Exterior Wall:	Concrete Block	Net Rentable Area:	183,150 SF
Number of Units:	203	Average Unit Size:	902 SF
Number of Stories:	3 & 4	Average Floor Area:	N/A


MVS Sec/Page/Class		12/14/C-Good
Building Component		Multiple
		Residences
Component Sq. Ft.		184,650 SF
Base Square Foot Cost		$	81.37

Square Foot Refinements
Heating and Cooling
Appliances	$2,500each	$	2.75
Patios & Balconies		$	3.74

Subtotal		$	87.86

Height and Size Refinements
Number of Stories Multiplier			1.00
Height per Story Multiplier			1.00
Floor Area Multiplier			1.00

Subtotal		$	87.86

Cost Multipliers
Current Cost Multiplier			1.05
Local Multiplier			0.94

Final Square Foot Cost		$	86.72
Base Component Cost		$	16,012,162


Base Building Cost	(via Marshall Valuation Service cost data)	$	16,012,162

Insurable Value Exclusions	10.0% of Total Building Cost	$	(1,601,216	)


Insurable Value Indication		$	14,410,946
Rounded		$	14,410,000
Value Per Unit		$	70,985

Compiled by CBRE


PRESIDENTIAL HOUSE		SALES COMPARISON APPROACH

The sales utilized represent the best data available for comparison with the subject. They were selected from our research of comparable improved sales within a four-mile radius of the subject. These sales were chosen as they represent multi-family projects with similar income characteristics as the subject.

DISCUSSION/ANALYSIS OF IMPROVED SALES

Improved Sale One

This comparable represents a garden-style multifamily property consisting of 234 units and is situated on an 8-acre parcel at 17600 N.W. 5th Avenue, Miami, FL. The improvements were originally constructed in 1972 and were considered in fair condition at the time of sale. The exterior walls depict concrete construction components. The average unit size was 737 square feet and project/unit amenities included leasing/management office, on-site laundry, security patrol and tot-lot. The property sold in March 2006 for $15,896,227, or $67,933 per unit. Existing net operating income at the time of sale was $1,066,662, or $4,558 per unit, for an overall capitalization rate of 6.71%. The property’s EGIM was calculated at 8.29 and occupancy at the time of sale was 96%. This complex of 234 units is located at the southwest corner of N.W. 177th Street and N.W. 5th Avenue, in northwest Miami-Dade County.

In terms of average unit size, this comparable was judged inferior and received an upward adjustment of 8% for this characteristic. An upward adjustment of 20% was applied to this comparable for its inferior condition attribute when compared to the subject, based upon our inspection of the property at the time of sale. Overall, this comparable was deemed inferior in comparison to the subject and an upward net adjustment was warranted to the sales price indicator.

Improved Sale Two

This comparable represents a mid-rise style multifamily property consisting of 348 units and is situated on an 8.89-acre parcel at 490 NW 165th Street Road, North Miami, FL. The improvements were originally constructed in 1972 and were considered in average condition at the time of sale. The exterior walls depict concrete construction components. The average unit size was 838 square feet and project/unit amenities included pool, clubhouse, and fitness center. The property sold in August 2006 for $32,000,000, or $91,954 per unit. Pro Forma net operating income at the time of sale was $1,947,333, or $5,596 per unit, for an overall capitalization rate of 6.09%. The property’s EGIM was calculated at 7.91 and occupancy at the time of sale was 98%. This property was purchased for condo conversion. The sale property is a four building six-story mid-rise type development located just southeast of Interstate 95 and the Golden Glades interchange.

A downward adjustment of -5% was applied to this comparable for its superior age/condition attribute when compared to the subject, based upon our physical inspection of the property for the sale.


PRESIDENTIAL HOUSE		SALES COMPARISON APPROACH

Overall, this comparable was deemed superior in comparison to the subject and a downward net adjustment was warranted to the sales price indicator.

Improved Sale Three

This comparable represents a mid-rise style multifamily property consisting of 402 units and is situated on a 9.44-acre parcel at 1550 NE 123rd Street, North Miami, FL. The improvements were originally constructed in 1985 and were considered in average condition at the time of sale. The exterior walls depict concrete construction components. The average unit size was 827 square feet and project/unit amenities included gated entry, two pools, fitness center, clubhouse, tennis courts, indoor racquetball court, spa and laundry on each floor. The property was placed under contract in March 2007 for $43,000,000, or $106,965 per unit. Pro Forma net operating income at the time of contract was $2,343,197, or $5,829 per unit, for an overall capitalization rate of 5.45%. The property’s EGIM was calculated at 8.51 and occupancy at the time of contract was 98%. This contract for sale is part of the Greenwich Park apartments. One of the buildings is condominiums and is not included. The property for sale includes six, five-story buildings containing 402 units with a mix of studio, one-bedroom and two-bedroom units.

A downward adjustment of -20% was applied to this comparable for its superior age/condition attribute when compared to the subject, based upon our physical inspection of the comparable for the sale. Overall, this comparable was deemed superior in comparison to the subject and a downward net adjustment was warranted to the sales price indicator.

Improved Sale Four

This comparable represents a mid-rise-style multifamily property consisting of 412 units and is situated on a 13.78-acre parcel at 21010 NW 7th Avenue, Miami, FL. The improvements were originally constructed in 1974 and were considered in average condition at the time of sale. The exterior walls depict concrete construction components. The average unit size was 1,042 square feet and project/unit amenities included pool, fitness center, business center, tennis courts, and laundry facilities. The property was placed under contract in May 2007 for $39,000,000, or $94,660 per unit. Pro Forma net operating income at the time of contract was $2,371,305, or $5,756 per unit, for an overall capitalization rate of 6.08%. The property’s EGIM was calculated at 7.68 and occupancy at the time of contract was 91%. This project is under contract and slated for condo conversion after the purchase. The income and expense data is based on actual at the time of sale adjusted for taxes in line with the sale price ($1,665/unit) and reserves of $200 were included.

In terms of average unit size, this comparable was judged superior and received a downward adjustment of -7% for this characteristic. Overall, this comparable was deemed superior in comparison to the subject and a downward net adjustment was warranted to the sales price indicator.


PRESIDENTIAL HOUSE		SALES COMPARISON APPROACH

SUMMARY OF ADJUSTMENTS

Based on our comparative analysis, the following chart summarizes the adjustments warranted to each comparable.

APARTMENT SALES ADJUSTMENT GRID


Comparable Number		1			2			3			4		Subj. Pro Forma
Transaction Type	Sale			Sale			Contract			Contract				—
Transaction Date	Mar-06			Aug-06			Mar-07			May-07				—
Year Built		1972			1972			1985			1974			1966
No. Units		234			348			402			412			203
Avg. Unit Size		737			838			827			1,042			902
Actual Sale Price	$	15,400,000		$	32,000,000		$	43,000,000		$	39,000,000			—
Adjusted Sale Price ¹	$	15,896,227		$	32,000,000		$	43,000,000		$	39,000,000			—
Price Per Unit ¹	$	67,933		$	91,954		$	106,965		$	94,660			—
Occupancy		96	%		98	%		98	%		91	%		95	%
NOI Per Unit	$	4,558		$	5,595		$	5,828		$	5,755		$	5,198
OAR		6.71	%		6.09	%		5.45	%		6.08	%		—

Adj. Price Per Unit	$	67,933		$	91,954		$	106,965		$	94,660

Property Rights Conveyed		0	%		0	%		0	%		0	%
Financing Terms ¹		0	%		0	%		0	%		0	%
Conditions of Sale		0	%		0	%		0	%		0	%
Market Conditions (Time)		0	%		0	%		0	%		0	%

Subtotal — Price Per Unit	$	67,933		$	91,954		$	106,965		$	94,660

Location		0	%		0	%		0	%		0	%
Project Size		0	%		0	%		0	%		0	%
Avg. Unit Size		8	%		0	%		0	%		-7	%
Age/Condition		20	%		-5	%		-20	%		0	%
Quality of Construction		0	%		0	%		0	%		0	%
Project Amenities		0	%		0	%		0	%		0	%
Parking		0	%		0	%		0	%		0	%
Other		0	%		0	%		0	%		0	%

Total Other Adjustments		28	%		-5	%		-20	%		-7	%

Indicated Value Per Unit	$	86,954		$	87,356		$	85,572		$	88,034

¹ Transaction amount adjusted for cash equivalency and/or deferred maintenance (where applicable) Compiled by CBRE

Overall, Comparables Two and Four were the most representative of the subject, and warranted greatest consideration because they required the fewest and smallest net adjustments when compared to the subject. The following chart presents the valuation conclusion:


PRESIDENTIAL HOUSE		INCOME CAPITALIZATION APPROACH

The rentals utilized represent the best data available for comparison with the subject. They were selected from our research within a four-mile radius of the subject.

DISCUSSION/ANALYSIS OF RENT COMPARABLES

Rent Comparable One

This comparable rental represents the Asbury Park apartments, a 234-unit mid-rise-style multifamily property at 17600 NW 5th Avenue, Miami Gardens, FL. The improvements were originally constructed in 1972 and were considered in average condition at the time of our research. The structure’s exterior walls depict masonry construction components and the average unit size is 737 square feet. Project/unit amenities include the following: laundry rooms, elevators, and gated entry. According to the unit mix and asking rates for this property, the average base rental rate is $1.25 per square foot annually ($917/unit), based upon typical lease terms of 12 months. No rent premiums were reported. Utilities included with the rent consist of water, sewer, trash and concessions are not currently offered. The property is currently 88% leased.

As compared to the subject, this project was viewed as inferior with respect to location and unit size, while regarded as similar in terms of quality of construction, project amenities and design appeal. Overall, the subject should command higher rent on a per unit basis, but lower on a per square foot basis.

Rent Comparable Two

This comparable rental represents the Aventura Harbor apartments, a 690-unit mid-rise-style multifamily property at 19455 NE 10th Avenue, Miami, FL. The improvements were originally constructed in 1986 and were considered in average condition at the time of our research. The structure’s exterior walls depict cement block construction components and the average unit size is 925 square feet. Project/unit amenities include the following: 2 pools, spa, 2 tennis courts, playground, clubhouse, volleyball, and picnic/bbq area. According to the unit mix and asking rates for this property, the average base rental rate is $1.25 per square foot annually ($1,160/unit), based upon typical lease terms of 7 and 12 months. No rent premiums were reported. Utilities included with the rent consist of trash and pest control and concessions are not currently offered. The property is currently 98% leased. This mid-rise apartment complex is located in northeast Miami-Dade County. The property comprises 690 units housed in 6, five-story buildings having a mix of efficiencies, one- and two-bedroom units. Project density is 41.45 units per acre. Residents are responsible for water and sewer costs.

As compared to the subject, this project was viewed as similar with respect to location, quality of construction, while regarded as superior in terms of age/condition and project amenities. An upward


PRESIDENTIAL HOUSE		INCOME CAPITALIZATION APPROACH

adjustment is warranted for the resident paid utilities. Overall, the subject should command lower rents than this comparable.

Rent Comparable Three

This comparable rental represents the Forest Place apartments, a 202-unit high-rise-style multifamily property at 1600 NE 135th Street, North Miami, FL. The improvements were originally constructed in 1971 and were considered in average condition at the time of our research. The structure’s exterior walls depict cement block construction components and the average unit size is 1,086 square feet. Project/unit amenities include the following: laundry facility, sauna, pool and picnic area. According to the unit mix and asking rates for this property, the average base rental rate is $0.97 per square foot annually ($1,058/unit), based upon typical lease terms of 7 and 12 months. Rent premiums were reported for the following: reserved parking $50, floor $10-105. Utilities included with the rent consist of trash & pest control and concessions are not currently offered. The property is currently 90% leased. This 202-unit high rise apartment complex is comprised of two, nine-story buildings with a mix of one, two and penthouse units situated on a 2.8 acre site indicating a density of 72.1 units per acre. Residents are responsible for water and sewer costs.

As compared to the subject, this project was viewed as similar with respect to location, quality of construction, project amenities and design appeal, while regarded as inferior in terms of utilities included in the rent. Overall, this comparable is physically similar, but an upward adjustment is warranted for the utilities included in the rent at the subject.

Rent Comparable Four

This comparable rental represents the Horizons North apartments, a 276-unit garden-style multifamily property at 665 Ives Dairy Road, North Miami Beach, FL. The improvements were originally constructed in 1988 and were considered in average condition at the time of our research. The structure’s exterior walls depict concrete / stucco construction components and the average unit size is 1,001 square feet. Project/unit amenities include the following: pool, gym, gated access, spa, laundry, and clubhouse. According to the unit mix and asking rates for this property, the average base rental rate is $1.09 per square foot annually ($1,095/unit), based upon typical lease terms of 7 – 12 months. No rent premiums were reported. Utilities included with the rent consist of trash and pest and concessions currently offered consist of 1 month free on a 13-month lease. The stated rents are net of the concessions. The property is currently 96% leased. Horizons North is a 276 unit apartment complex located in North Miami Beach, Miami-Dade, Florida. The complex is in average condition and contains one, two and three bedroom floor plans. Tenants pay water/sewer.

As compared to the subject, this project was viewed as similar with respect to location, quality of construction and design appeal, while regarded as inferior in terms of utilities included in the rent at the subject. Additionally, this comparable is considered superior to the subject in terms of


PRESIDENTIAL HOUSE		INCOME CAPITALIZATION APPROACH

age/condition. Overall, this comparable is superior to the subject and the subject should command lower rents than this comparable.

Rent Comparable Five

This comparable rental represents the Portofino at Biscayne apartments, an 866-unit high-rise-style multifamily property at 1820-1860 NE 142nd Street, North Miami, FL. The improvements were originally constructed in 1974 and were considered in average condition at the time of our research. The structure’s exterior walls depict cement block construction components and the average unit size is 779 square feet. Project/unit amenities include the following: 2 lighted tennis courts, 2 pools, fitness center, 24-hour attended gatehouse, and picnic area. According to the unit mix and asking rates for this property, the average base rental rate is $1.34 per square foot annually ($1,042/unit), based upon typical lease terms of 7 & 12 months. Rent premiums were reported for the following: balcony $25, renovated units $50. Utilities included with the rent consist of water & sewer and trash removal and concessions are not currently offered. The property is currently 100% leased. This high-rise apartment complex is located in North Miami and comprises five 10-story buildings. The tenant profile at this complex is mainly singles and small families. There are 866 rental units. The apartment complex was renovated in 2004 and 2005.

As compared to the subject, this project was viewed as similar with respect to quality of construction, while regarded as superior in terms of location/view and condition. Overall, the subject should command lower rents than this comparable.

Rent Comparable Six

This comparable rental represents the Somervale apartments, a 412-unit mid/high-rise style multifamily property at 21010 NW 7^th Avenue, Miami, FL. The improvements were originally constructed in 1974 and were considered in good condition at the time of our research. The structure’s exterior walls depict concrete block/ stucco construction components and the average unit size is 1,042 square feet. Project/unit amenities include the following: pool, fitness center, gated access, tennis court, laundry, and clubhouse. According to the unit mix and asking rates for this property, the average base rental rate is $0.95 per square foot annually ($992/unit), based upon typical lease terms of 12 months. No rent premiums were reported. Utilities included with the rent consist of trash and pest and concessions are not currently offered. The property is currently 88% leased; however, units are being held from rental operations in preparation of the conversion to condos.

As compared to the subject, this project was viewed as similar with respect to location, quality of construction, condition and design appeal, while regarded as inferior in terms of utilities included in the rent. Overall, this comparable is physically similar, but an upward adjustment is warranted for the utilities included in the rent at the subject.


PRESIDENTIAL HOUSE		INCOME CAPITALIZATION APPROACH

SUBJECT RENTAL INFORMATION

The following table depicts the subject’s unit mix and rental rates.

SUBJECT RENTAL INFORMATION


	No. of		Unit	Unit			Quoted		Rent
Type	Units		Size (SF)	Occ.			Rents		Per SF

1BR/1BA		113	750 SF		95	%	$	869	$	1.16
1BR/1.5BA		48	1,000 SF		92	%	$	929	$	0.93
2BR/2BA		42	1,200 SF		98	%	$	1,209	$	1.01
Upgraded Units		10					$	30

Total/Average:		203	902 SF		95	%	$	955	$	1.06

Compiled by CBRE

According to on-site management, the most recent rental increases were implemented in June 2007 and were approximately $40.00 per unit per month for the small one-bedroom plan types and $10.00 per unit per month for the large one-bedroom and two-bedroom plan types. The subject has not yet implemented a RUBS program whereas the rental rates depicted are inclusive of gas, water, sewer and trash removal costs. Concessions are currently offered at the subject in terms of one month of free rent spread over a 13-month lease period. The concessions only apply to certain units and are not across the board.

ESTIMATE OF MARKET RENT

In order to estimate the market rates for the various floor plans, the subject unit types have been compared with similar units in the comparable projects. The following is a discussion of each unit type.


PRESIDENTIAL HOUSE		INCOME CAPITALIZATION APPROACH

One-Bedroom Units

SUMMARY OF COMPARABLE RENTALS
ONE BEDROOM UNITS


			Rental Rates
Comparable	Plan Type	Size	$/Mo.		$/SF

Subject	1BR/1.5BA	1,000 SF	$	899	$	0.90
Forest Place	1 BR, 1 BA, Den	1,200 SF	$	1,105	$	0.92
Forest Place	1 BR, 1 BA	975 SF	$	925	$	0.95
Forest Place	1 BR, 1 BA	911 SF	$	910	$	1.00
Horizons North	1 BR, 1.5 BA, Pent	1,222 SF	$	1,223	$	1.00
Somervale Apartments fka Oasis Club	1 BD, 1.5 BA	915 SF	$	920	$	1.01
Somervale Apartments fka Oasis Club	1 BD, 1 BA	800 SF	$	905	$	1.13
Subject	1BR/1BA	750 SF	$	869	$	1.16
Aventura Harbor	1 BR, 1 BA	850 SF	$	995	$	1.17
Portofino at Biscayne	1 BD/1 BA w/out Balc	750 SF	$	979	$	1.31
Horizons North	1 BR, 1.5 BA	690 SF	$	905	$	1.31
Asbury Park	1 BD, 1 BA	625 SF	$	824	$	1.32
Portofino at Biscayne	1 BD/1 BA w/ Balcony	750 SF	$	1,004	$	1.34

Compiled by CBRE

The subject’s quoted rental rates are within or at the lower end of the range indicated by the rent comparables. The subject’s rent roll indicates that a majority of the occupied one-bedroom units are leased at below the quoted rates, which is indicative of recent rental increases that have taken effect. The most recent leases of one bedroom units have been signed at the quoted rates, which when compared to the comparable data set is low. Considering the available data, the monthly market rent for the subject’s 750 square foot one-bedroom units is estimated at $875 per unit or $1.17 per square foot. The monthly market rent for the subject’s 1,000 square foot one-bedroom unit is estimated at $950 per unit or $0.95 per square foot. Both market rent estimates are well within the range indicated by the comparables.


PRESIDENTIAL HOUSE		INCOME CAPITALIZATION APPROACH

Two-Bedroom Units

SUMMARY OF COMPARABLE RENTALS
TWO BEDROOM UNITS


			Rental Rates
Comparable	Plan Type	Size	$/Mo.		$/SF

Somervale Apartments fka Oasis Club	2 BD, 2 BA	1,420 SF	$	1,140	$	0.80
Somervale Apartments fka Oasis Club	2 BD, 2 BA	1,320 SF	$	1,120	$	0.85
Somervale Apartments fka Oasis Club	2 BD, 2 BA	1,205 SF	$	1,105	$	0.92
Horizons North	2 BR, 2 BA, Pent	1,476 SF	$	1,357	$	0.92
Forest Place	2 BR, 2 BA	1,200 SF	$	1,190	$	0.99
Subject	2BR/2BA	1,200 SF	$	1,209	$	1.01
Forest Place	2 BR, 2.5 BA PH	2,100 SF	$	2,200	$	1.05
Horizons North	2 BR, 2 BA w/Den	1,015 SF	$	1,112	$	1.10
Horizons North	2 BR, 2 BA	955 SF	$	1,052	$	1.10
Aventura Harbor	2 BR, 2 BA	1,200 SF	$	1,350	$	1.13
Portofino at Biscayne	2 BD/2 BA w/Balcony	1,070 SF	$	1,294	$	1.21
Asbury Park	2 BD, 1 BA	800 SF	$	985	$	1.23
Aventura Harbor	2 BR, 2 BA	980 SF	$	1,250	$	1.28
Aventura Harbor	2 BR, 1 BA	930 SF	$	1,225	$	1.32
Portofino at Biscayne	2 BD/1 BA	900 SF	$	1,194	$	1.33

Compiled by CBRE

The subject’s quoted rental rates are within the range indicated by the rent comparables. The subject’s rent roll indicates that a majority of the occupied two-bedroom units are leased at below the quoted rates, which is indicative of recent rental increases that have taken effect. The most recent leases of two bedroom units have been signed at varying rates, but generally near the quoted rate. Considering the available data, the monthly market rent for the subject units is estimated at $1,209 per unit or $1.01 per square foot.

MARKET RENT CONCLUSIONS

The following chart depicts the market rent conclusions for the subject:

MARKET RENT CONCLUSIONS


No.			Unit		Monthly Rent						Annual Rent				Annual
Units		Unit Type	Size	Total SF	$/Unit		$/SF		PRI		$/Unit		$/SF		Total

	113	1BR/1BA	750 SF	84,750 SF	$	875	$	1.17	$	98,875	$	10,500	$	14.00	$	1,186,500
	48	1BR/1.5BA	1,000 SF	48,000 SF	$	950	$	0.95	$	45,600	$	11,400	$	11.40	$	547,200
	42	2BR/2BA	1,200 SF	50,400 SF	$	1,209	$	1.01	$	50,778	$	14,508	$	12.09	$	609,336
	10	Upgraded Units			$	30			$	300	$	360			$	3,600

	203		902 SF	183,150 SF	$	963	$	1.07	$	195,553	$	11,560	$	12.81	$	2,346,636

Compiled by CBRE


PRESIDENTIAL HOUSE		INCOME CAPITALIZATION APPROACH

RENT ADJUSTMENTS

Rent adjustments are sometimes necessary to account for differences in rental rates applicable to different units within similar floor plans due to items such as location within the property, view, and level of amenities. These rental adjustments may be in the form of rent premiums or rent discounts.

As noted, the rental rates for some of the subject’s units vary depending upon whether or not they have been upgraded and modernized. According to the manager, the premium for upgraded units is $30 per month, which is in line with other multi-family projects that have renovated units in a similar fashion as the subject units.

RENT ROLL ANALYSIS

The rent roll analysis serves as a crosscheck to the estimate of market rent for the subject. The collections shown on the rent roll include rent premiums and/or discounts.

RENT ROLL ANALYSIS


	Total		Total
Revenue Component	Monthly Rent		Annual Rent

192 Occupied Units at Contract Rates	$	179,412	$	2,152,944
11 Vacant Units at Quoted Rates	$	10,139	$	121,668

203 Total Units @ Contract Rent	$	189,551	$	2,274,612
203 Total Units @ Market Rent	$	195,553	$	2,346,636

Compiled by CBRE

The variation between the total annual rent reflected in the rent roll analysis and the market rent conclusion owes to older leases that do not reflect recent increases in rental rates, as well as our projections for higher rent on the one-bedroom units. Property management indicated that the majority of units are being signed at the quoted rates upon lease renewal. The recent rent roll provided also reflects that recently leased units are achieving the quoted rates, which when compared to the comparable data set is slightly low.

POTENTIAL RENTAL INCOME CONCLUSION

Within this analysis, potential rental income is estimated based upon the forward looking market rental rates over the next twelve months. This method of calculating rental income is most prevalent in the local market and is consistent with the method used to derive overall capitalization rates from the comparable sales data.


PRESIDENTIAL HOUSE		INCOME CAPITALIZATION APPROACH

POTENTIAL RENTAL INCOME


Year	Total		% Change

2005	$	2,222,664		—
2006	$	2,420,206		9	%
2007 Annualized	$	2,317,769		-4	%
June 2007 T-12	$	2,370,502		2	%
CBRE Estimate	$	2,346,636		-1	%


Compiled by CBRE

Our pro forma estimate is approximately 3% less than the most recent full year due to pricing structure at the subject. In the past two full years, the subject has incurred a significant loss to lease due to quoting higher rents and achieving rates lower than the quoted rents. Thus far in 2007, the loss to lease is significantly lower; therefore the pro forma estimate should be in line with the annualized year amount.

In estimating the subject’s pro forma operating data, the actual operating history and budgets have been analyzed. The following table presents the available operating data history for the subject.

OPERATING HISTORY


													2007						June 2007
Year-Occupancy	2005			98%			2006			96%			Annualized			95%			T-12			95%

	Total			$/Unit			Total			$/Unit			Total			$/Unit			Total			$/Unit

Income
Rental Income	$	2,172,432		$	10,702		$	2,318,315		$	11,420		$	2,204,662		$	10,860		$	2,243,206		$	11,050
Loss To Lease		(186,576	)		(919	)		(182,598	)		(899	)		(43,950	)		(217	)		(90,502	)		(446	)
Concessions		(102,820	)		(507	)		(75,761	)		(373	)		(54,520	)		(269	)		(47,937	)		(236	)
Credit Loss		(40,504	)		(200	)		(90,085	)		(444	)		(74,814	)		(369	)		(114,089	)		(562	)
Other Income		76,091			375			123,024			606			179,990			887			165,064			813

Effective Gross Income	$	1,918,623		$	9,451		$	2,092,895		$	10,310		$	2,211,368		$	10,893		$	2,155,742		$	10,619

Expenses
Real Estate Taxes	$	188,807		$	930		$	231,616		$	1,141		$	250,610		$	1,235		$	223,971		$	1,103
Property Insurance		75,782			373			132,319			652			92,222			454			118,144			582
Natural Gas		30,489			150			34,790			171			37,246			183			33,924			167
Electricity		32,403			160			49,752			245			39,880			196			49,408			243
Water & Sewer		52,509			259			60,393			298			45,760			225			48,839			241
Cable Television		—			—			—			—			—			—			—			—
Trash Removal		22,988			113			22,878			113			41,524			205			36,058			178
Administrative & General		44,332			218			66,669			328			85,906			423			76,597			377
Repairs & Maintenance		52,536			259			67,296			332			87,786			432			79,853			393
Painting & Decorating		37,040			182			40,504			200			48,314			238			46,207			228
Grounds (Landscaping)		2,812			14			4,900			24			10,800			53			10,300			51
Management Fee		95,595			471			101,901			502			105,824			521			103,405			509
Administrative Payroll		121,271			597			126,982			626			130,896			645			123,639			609
Maintenance Payroll		65,177			321			90,609			446			102,708			506			102,253			504
Employee Taxes & Benefits		58,413			288			53,640			264			62,408			307			57,863			285
Employee Apts. (Non-Revenue Units)		21,470			106			13,075			64			34,170			168			23,662			117
Advertising & Leasing		36,648			181			48,927			241			114,848			566			86,871			428
Reserves for Replacement		—			—			—			—			—			—			—			—

Operating Expenses	$	938,272		$	4,622		$	1,146,251		$	5,647		$	1,290,902		$	6,359		$	1,220,994		$	6,015

Net Operating Income	$	980,351		$	4,829		$	946,644		$	4,663		$	920,466		$	4,534		$	934,748		$	4,605

Annualized Amounts Represent 6 Months (Jan. through June 2007)


Source: Operating statements


PRESIDENTIAL HOUSE		INCOME CAPITALIZATION APPROACH

LOSS TO LEASE

Within the local market, buyers and sellers typically recognize a reduction in potential rental income due to the difference between market and contract rental rates. In this market, lease rates are typically flat and are anticipated to roll to market every 12 months on average. As a result, actual collections typically lag behind market rates by approximately six months. Based upon the difference between market rent and contract rent, the loss to lease associated with the subject is estimated at 1.50% of gross rental income. This method of calculating rental income is most prevalent in the local market and is consistent with the method used to derive overall capitalization rates from the comparable sales data.

RENT CONCESSIONS

Rent concessions are currently not prevalent in the local market although the subject is quoting concessions on select units. With the subject’s occupancy at 94.6%, we have not considered any concessions going forward.

VACANCY

The subject’s estimated stabilized occupancy rate was previously discussed in the market analysis. The subject’s vacancy is detailed as follows:

VACANCY


Year	% PGI

2005		2	%
2006		4	%
2007 Annualized		5	%
June 2007 T-12		5	%
Current		5	%
CBRE Estimate		5	%


Compiled by CBRE

CREDIT LOSS

The credit loss estimate is an allowance for nonpayment of rent or other income. The subject’s credit loss is detailed as follows:


PRESIDENTIAL HOUSE		INCOME CAPITALIZATION APPROACH

CREDIT LOSS


Year	% PGI

2005		-2.1	%
2006		-4.2	%
2007 Annualized		-3.4	%
June 2007 T-12		-5.1	%
CBRE Estimate		-2.0	%


Compiled by CBRE

OTHER INCOME

Other income is supplemental to that derived from leasing of the improvements. This includes categories such as forfeited deposits, vending machines, late charges, etc. The subject’s ancillary income is detailed as follows:

OTHER INCOME


Year	Total		$/Unit

2005	$	76,091	$	375
2006	$	123,024	$	606
2007 Annualized	$	179,990	$	887
June 2007 T-12	$	165,064	$	813
CBRE Estimate	$	160,000	$	788


Compiled by CBRE

The primary source of other income is laundry income, late charges, lease cancellation fees and non-refundable administrative fees. Our estimate is slightly above the average Other Income for 2006 and 2007 Annualized and is generally supported by the available historical financial data.

EFFECTIVE GROSS INCOME

The subject’s effective gross income is detailed as follows:

EFFECTIVE GROSS INCOME


Year	Total		% Change

2005	$	1,918,623		—
2006	$	2,092,895		9	%
2007 Annualized	$	2,211,368		6	%
June 2007 T-12	$	2,155,742		-3	%
CBRE Estimate	$	2,309,636		7	%


Compiled by CBRE


PRESIDENTIAL HOUSE		INCOME CAPITALIZATION APPROACH

Our pro forma estimate is approximately 4% higher than the current annualized year due to our estimate of lower loss to lease and credit loss. Our market rent estimate is supported by the market and the subject should be able to command the pro forma rates and only experience loss to lease as future rental rate increases take place. Further, the subject has experienced an unusually high credit loss. Prudent management is assumed and would typically not tolerate credit loss in excess of 2%.

OPERATING EXPENSE ANALYSIS

Expense Comparables

The following chart summarizes expenses obtained from recognized industry publications and/or comparable properties.

EXPENSE COMPARABLES


Comparable Number	1			2			3
Location	Miami			Miami			Miami
Units	412			402			196
Year Built	1974			1985			1982
Expense Year	2006			2006			2006 Annualized

Effective Gross Income	$	10,029		$	11,352		$	8,813
Other Income	$	603		$	524		$	105

	$/Unit			$/Unit			$/Unit
Expenses
Real Estate Taxes	$	1,074		$	1,783		$	995
Property Insurance		848			249			699
Natural Gas		—			204			—
Electricity		357			258			197
Water & Sewer		367			577			344
Cable Television		—			—			—
Trash Removal		124			119			102
Administrative & General		165			164			370
Repairs & Maintenance		919			101			314
Painting & Decorating		584			278			20
Grounds (Landscaping)		419			289			21
Management Fee		393			454			536
(as a % of EGI)		3.9	%		4.0	%		6.1	%
Administrative Payroll		1,471			299			367
Maintenance Payroll		—			627			364
Employee Taxes & Benefits		—			234			193
Employee Apts. (Non-Revenue Units)		72			34			—
Advertising & Leasing		89			43			23
Reserves for Replacement		—			—			—

Operating Expenses	$	6,882		$	5,713		$	4,545
Operating Expense Ratio		68.6	%		50.3	%		51.6	%


Source: Actual Operating Statements


PRESIDENTIAL HOUSE		INCOME CAPITALIZATION APPROACH

The following subsections represent the analysis for the pro forma estimate of each category of the subject’s stabilized expenses.

Real Estate Taxes

The real estate taxes for the subject were previously discussed. The subject’s expense is detailed as follows:

REAL ESTATE TAXES


Year	Total		$/Unit

2005	$	188,807	$	930
2006	$	231,616	$	1,141
2007 Annualized	$	250,610	$	1,235
June 2007 T-12	$	223,971	$	1,103
Expense Comparable 1		N/A	$	1,074
Expense Comparable 2		N/A	$	1,783
Expense Comparable 3		N/A	$	995
CBRE Estimate	$	272,691	$	1,343


Compiled by CBRE

The subject’s recent historical and budgeted amounts are generally consistent and based upon the historical assessment of the property. Our estimate is based on a higher property assessment, in line with the estimated value and the trends of the Assessor’s office and current tax rate. This estimate is consistent with other properties operating in the area.

Property Insurance

Property insurance expenses typically include fire and extended coverage and owner’s liability coverage. The subject’s expense is detailed as follows:

PROPERTY INSURANCE


Year	Total		$/Unit

2005	$	75,782	$	373
2006	$	132,319	$	652
2007 Annualized	$	92,222	$	454
June 2007 T-12	$	118,144	$	582
Expense Comparable 1		N/A	$	848
Expense Comparable 2		N/A	$	249
Expense Comparable 3		N/A	$	699
CBRE Estimate	$	131,950	$	650


Compiled by CBRE


PRESIDENTIAL HOUSE		INCOME CAPITALIZATION APPROACH

We note that beginning in the Spring 2006, the availability of insurance within the wind zone of the Gulf and Atlantic Ocean Coastal regions has become extremely challenging. This has been largely a result of two very active seasons of hurricane activity, with recent forecast of more active years to follow combined with new models of damage estimates should a major storm affect a populated region. There are several factors that cause the volatility, including age of structure, age/type of roof and window systems, and location relative to the coast. Since March, we have witnessed insurance rates increase dramatically, particularly for those properties built prior to the 2000 Wind Code. For many assets, we’ve witnessed increases of 100 to 200 percent over 2005 rates, and in some cases as dramatic as 10 times the 2005 rate. Our pro forma estimate is based on the most recent full year, which is in line with other insurance premium quotes we have seen for similar product.

Natural Gas

The subject includes natural gas for the operation of various equipment and/or appliances. The subject’s expense is detailed as follows:

NATURAL GAS


Year	Total		$/Unit

2005	$	30,489	$	150
2006	$	34,790	$	171
2007 Annualized	$	37,246	$	183
June 2007 T-12	$	33,924	$	167
Expense Comparable 1		N/A	$	0
Expense Comparable 2		N/A	$	204
Expense Comparable 3		N/A	$	0
CBRE Estimate	$	34,510	$	170


Compiled by CBRE

Our estimate is consistent with the most recent full year amount, and in line with the trailing 12-month amount.

Electricity

Electricity expenses are typically very property specific, and comparables offer a minimal indication of an appropriate level. We have found the best indication of this expense is the subject’s recent historical and budgeted level. The subject’s expense is detailed as follows:


PRESIDENTIAL HOUSE		INCOME CAPITALIZATION APPROACH

ELECTRICITY


Year	Total		$/Unit

2005	$	32,403	$	160
2006	$	49,752	$	245
2007 Annualized	$	39,880	$	196
June 2007 T-12	$	49,408	$	243
Expense Comparable 1		N/A	$	357
Expense Comparable 2		N/A	$	258
Expense Comparable 3		N/A	$	197
CBRE Estimate	$	48,720	$	240


Compiled by CBRE

Our estimate is consistent with the most recent full year amount, and in line with the trailing 12-month amount.

Water & Sewer

As with the other utility expenses, water and sewer costs are typically very property specific. This expense has increased during recent years, which is a function of normal inflationary pressures. This expense typically ranges from approximately $150 to $300 net per unit annually, with most properties being toward the middle to upper end of the range. The subject’s expense is detailed as follows:

WATER & SEWER


Year	Total		$/Unit

2005	$	52,509	$	259
2006	$	60,393	$	298
2007 Annualized	$	45,760	$	225
June 2007 T-12	$	48,839	$	241
Expense Comparable 1		N/A	$	367
Expense Comparable 2		N/A	$	577
Expense Comparable 3		N/A	$	344
CBRE Estimate	$	50,750	$	250


Compiled by CBRE

The most recent full year is below the lower end of the expense comparables, but has been relatively consistent and we have therefore concluded the subject’s pro forma estimate in line with the available historical financial data.


PRESIDENTIAL HOUSE		INCOME CAPITALIZATION APPROACH

Trash Removal

The subject’s weekly refuse services are provided by a local contractor. The subject’s expense is detailed as follows:

TRASH REMOVAL


Year	Total		$/Unit

2005	$	22,988	$	113
2006	$	22,878	$	113
2007 Annualized	$	41,524	$	205
June 2007 T-12	$	36,058	$	178
Expense Comparable 1		N/A	$	124
Expense Comparable 2		N/A	$	119
Expense Comparable 3		N/A	$	102
CBRE Estimate	$	36,540	$	180


Compiled by CBRE

The most recent full year is consistent with the mid-point of the expense comparables, but lower than the 2007 annualized amount and the trailing 12-month amount. Our estimate is based on the trailing 12-month amount as this includes an apparent increase in the cost to remove trash from the subject.

Administrative & General

Administrative expenses typically include legal costs, accounting, items which are not provided by off-site management, telephone, supplies, furniture, and temporary help. The subject’s expense is detailed as follows:

ADMINISTRATIVE & GENERAL


Year	Total		$/Unit

2005	$	44,332	$	218
2006	$	66,669	$	328
2007 Annualized	$	85,906	$	423
June 2007 T-12	$	76,597	$	377
Expense Comparable 1		N/A	$	165
Expense Comparable 2		N/A	$	164
Expense Comparable 3		N/A	$	370
CBRE Estimate	$	71,050	$	350


Compiled by CBRE


PRESIDENTIAL HOUSE		INCOME CAPITALIZATION APPROACH

The most recent full year is in the upper portion of the expense comparables and we have therefore concluded the subject’s pro forma estimate in line with the mid-point of the most recent full year and the trailing 12-month amount. Our estimate is consistent with other properties operating in the area and generally supported by the available historical and budgeted financial data.

Repairs & Maintenance

This expense category includes the cost of routine repairs to the apartments units. The subject’s expense is detailed as follows:

REPAIRS & MAINTENANCE


Year	Total		$/Unit

2005	$	52,536	$	259
2006	$	67,296	$	332
2007 Annualized	$	87,786	$	432
June 2007 T-12	$	79,853	$	393
Expense Comparable 1		N/A	$	919
Expense Comparable 2		N/A	$	101
Expense Comparable 3		N/A	$	314
CBRE Estimate	$	81,200	$	400


Compiled by CBRE

The subject’s recent historical amounts are relatively consistent. The current annualized year is slightly below the mid-point of the expense comparables and we have therefore concluded the subject’s pro forma estimate in line with the trailing 12-month estimate.

Painting & Decorating

This expense category includes normal cleaning, painting, decorating and other “make ready” costs expended prior to the initial move-in of a tenant. The subject’s expense is detailed as follows:


PRESIDENTIAL HOUSE		INCOME CAPITALIZATION APPROACH

PAINTING & DECORATING


Year	Total		$/Unit

2005	$	37,040	$	182
2006	$	40,504	$	200
2007 Annualized	$	48,314	$	238
June 2007 T-12	$	46,207	$	228
Expense Comparable 1		N/A	$	584
Expense Comparable 2		N/A	$	278
Expense Comparable 3		N/A	$	20
CBRE Estimate	$	46,690	$	230


Compiled by CBRE

The subject’s recent historical amounts are relatively consistent. Our estimate is consistent with the available historical financial data.

Grounds (Landscaping)

This expense item covers normal landscaping and grounds maintenance of the property. The subject’s expense is detailed as follows:

GROUNDS (LANDSCAPING)


Year	Total		$/Unit

2005	$	2,812	$	14
2006	$	4,900	$	24
2007 Annualized	$	10,800	$	53
June 2007 T-12	$	10,300	$	51
Expense Comparable 1		N/A	$	419
Expense Comparable 2		N/A	$	289
Expense Comparable 3		N/A	$	21
CBRE Estimate	$	10,150	$	50


Compiled by CBRE

The subject’s recent historical amounts vary; however, the 2007 annualized amount and the trailing 12-month amount are consistent. Our estimate is consistent with the current annualized year and the trailing 12-month data.

Management Fee

Management expenses are typically negotiated as a percentage of collected revenues (i.e., effective gross income). The subject’s expense is detailed as follows:



PRESIDENTIAL HOUSE		INCOME CAPITALIZATION APPROACH

MANAGEMENT FEE


Year	Total		% EGI

2005	$	95,595		5.0	%
2006	$	101,901		4.9	%
2007 Annualized	$	105,824		4.8	%
June 2007 T-12	$	103,405		4.8	%
CBRE Estimate	$	69,289		3.0	%


Compiled by CBRE

Professional management fees in the local market range from 3.0% to 5.0% for comparable properties. Historically, the subject has incurred a 4.8% to 5.0% management fee, which is high in the current market. Given the subject’s size and the competitiveness of the local market area, we believe an appropriate management expense for the subject would be towards the lower end of the range.

Administrative Payroll

This expense item reflects payroll costs associated with on-site management and other administrative personnel. The subject’s expense is detailed as follows:

ADMINISTRATIVE PAYROLL


Year	Total		$/Unit

2005	$	121,271	$	597
2006	$	126,982	$	626
2007 Annualized	$	130,896	$	645
June 2007 T-12	$	123,639	$	609
Expense Comparable 1		N/A	$	1,471
Expense Comparable 2		N/A	$	299
Expense Comparable 3		N/A	$	367
CBRE Estimate	$	126,875	$	625


Compiled by CBRE

The subject’s recent historical amounts are relatively consistent and provide a good indicator of this expense for the subject. Our estimate is consistent with the mid-point of the available historical financial data.

Maintenance Payroll

This expense item reflects payroll costs associated with the upkeep and maintenance of the property, including engineering and other maintenance personnel. The subject’s expense is detailed as follows:



PRESIDENTIAL HOUSE		INCOME CAPITALIZATION APPROACH

MAINTENANCE PAYROLL


Year	Total		$/Unit

2005	$	65,177	$	321
2006	$	90,609	$	446
2007 Annualized	$	102,708	$	506
June 2007 T-12	$	102,253	$	504
Expense Comparable 1		N/A	$	0
Expense Comparable 2		N/A	$	627
Expense Comparable 3		N/A	$	364
CBRE Estimate	$	101,500	$	500


Compiled by CBRE

Employee Taxes & Benefits

This expense item includes all employee payroll taxes and other employment benefits for the subject. The subject’s expense is detailed as follows:

EMPLOYEE TAXES & BENEFITS


Year	Total		$/Unit

2005	$	58,413	$	288
2006	$	53,640	$	264
2007 Annualized	$	62,408	$	307
June 2007 T-12	$	57,863	$	285
Expense Comparable 1		N/A	$	0
Expense Comparable 2		N/A	$	234
Expense Comparable 3		N/A	$	193
CBRE Estimate	$	55,825	$	275


Compiled by CBRE



PRESIDENTIAL HOUSE		INCOME CAPITALIZATION APPROACH

Employee Apartments (Non-Revenue Units)

Apartment properties typically include units that are non-revenue producing. These may include model units, employee units, employee discounts or others. The subject’s expense is detailed as follows:

EMPLOYEE APTS. (NON-REVENUE UNITS)


Year	Total		$/Unit

2005	$	21,470	$	106
2006	$	13,075	$	64
2007 Annualized	$	34,170	$	168
June 2007 T-12	$	23,662	$	117
Expense Comparable 1		N/A	$	72
Expense Comparable 2		N/A	$	34
Expense Comparable 3		N/A	$	0
CBRE Estimate	$	23,345	$	115


Compiled by CBRE

The subject’s recent historical amounts vary and are typically higher than the comparables. Our estimate is consistent with the trailing 12-month estimate as this represents the current non-revenue unit operation at the subject.

Advertising & Leasing

This expense category accounts for placement of advertising, commissions, signage, brochures, and newsletters. The subject’s expense is detailed as follows:

ADVERTISING & LEASING


Year	Total		$/Unit

2005	$	36,648	$	181
2006	$	48,927	$	241
2007 Annualized	$	114,848	$	566
June 2007 T-12	$	86,871	$	428
Expense Comparable 1		N/A	$	89
Expense Comparable 2		N/A	$	43
Expense Comparable 3		N/A	$	23
CBRE Estimate	$	42,630	$	210


Compiled by CBRE

This expense category has significantly decreased in the past year or two due to the overall demand for multi-family rental units at a time when units were being taken from rental operations and



PRESIDENTIAL HOUSE		INCOME CAPITALIZATION APPROACH

converted to condos. The subject’s 2007 annualized amount and trailing 12-month amount include a significant increase in National Media Advertising. Based on the current occupancy, which is actually below the occupancy in 2005 and 2006, this expenditure does not appear to be successful and would likely be suspended under different ownership. Our estimate is consistent with the midpoint of the 2005 and 2006 data, but well above the comparables.

Reserves for Replacement

Reserves for replacement have been estimated based on discussions with knowledgeable market participants who indicate a range from $150 to $300 per unit for comparable properties. The subject’s expense is detailed as follows:

RESERVES FOR REPLACEMENT


Year	Total		$/Unit

2005	$	0	$	0
2006	$	0	$	0
2007 Annualized	$	0	$	0
June 2007 T-12	$	0	$	0
Expense Comparable 1		N/A	$	0
Expense Comparable 2		N/A	$	0
Expense Comparable 3		N/A	$	0
CBRE Estimate	$	50,750	$	250


Compiled by CBRE

OPERATING EXPENSE CONCLUSION

The subject’s expense is detailed as follows:

OPERATING EXPENSES


Year	Total		$/Unit

2005	$	938,272	$	4,622
2006	$	1,146,251	$	5,647
2007 Annualized	$	1,290,902	$	6,359
June 2007 T-12	$	1,220,994	$	6,015
Expense Comparable 1		N/A	$	6,882
Expense Comparable 2		N/A	$	5,713
Expense Comparable 3		N/A	$	4,545
CBRE Estimate	$	1,254,536	$	6,180


Compiled by CBRE



PRESIDENTIAL HOUSE		INCOME CAPITALIZATION APPROACH

The subject’s per unit operating expense pro forma is in line with the total per unit operating expenses indicated by the expense comparables. It also is supported by the current annualized amount and the trailing 12-month amount indicated above.

NET OPERATING INCOME CONCLUSION

The subject’s net operating income is detailed as follows:

NET OPERATING INCOME


Year	Total		$/Unit

2005	$	980,351	$	4,829
2006	$	946,644	$	4,663
2007 Annualized	$	920,466	$	4,534
June 2007 T-12	$	934,748	$	4,605
CBRE Estimate	$	1,055,100	$	5,198


Compiled by CBRE

Our pro forma estimate is approximately 11.5% higher than the most recent full year due to recently implemented rental rate increases at the subject, which are not reflected in the historical data, as well as our projections for higher rent on the one-bedroom units.

DIRECT CAPITALIZATION

Direct capitalization is a method used to convert a single year’s estimated stabilized net operating income into a value indication. The following subsections represent different techniques for deriving an overall capitalization rate for direct capitalization.

Comparable Sales

The overall capitalization rates (OARs) confirmed for the comparable sales analyzed in the sales comparison approach are as follows:

COMPARABLE CAPITALIZATION RATES


	Sale	Sale Price
Sale	Date	$/Unit		Occupancy			OAR

1	Mar-06	$	67,933		96	%		6.71	%
2	Aug-06	$	91,954		98	%		6.09	%
3	Mar-07	$	106,965		98	%		5.45	%
4	May-07	$	94,660		91	%		6.08	%

Indicated OAR:					93	%		6.00	%


Compiled by: CBRE



PRESIDENTIAL HOUSE		INCOME CAPITALIZATION APPROACH

The overall capitalization rates for these sales were derived based upon the actual or pro-forma income characteristics of the property. Sale Nos. Three and Four transpired within the past three months, while Sale Nos. One and Two represent slightly older transaction dates. Therefore, primary emphasis has been placed upon the more recent data, which is generally reflective of current market trends, interest rates, and buyer’s expectations and motivation in the market. Overall, an OAR in the middle of the range indicated by the comparables is considered appropriate for the following reasons:

	•		The subject is located in a strong rental market and near several of the major thoroughfares in the area;

	•		The subject, although an older complex, is highly competitive with similar, yet newer properties in the area;

	•		The subject has maintained an occupancy level of 95% or better for the past three years, which is slightly above that of the overall market and in line with the submarket for the same property type.

Published Investor Surveys

The results of the most recent National Investor Survey, published by CBRE, are summarized in the following chart.

OVERALL CAPITALIZATION RATES


Investment Type	OAR Range			Average

CBRE Apartments
Class A		5.00% - 8.00	%		6.07	%
Class B		5.00% - 8.00	%		6.58	%
Class C		6.00% - 9.00	%		7.37	%

Korpacz Apartment
National Data		3.50% - 8.00	%		5.80	%

Indicated OAR:					6.00	%


Source: CBRE National Investor Survey & Korpacz Real Estate Investor Survey

The subject is considered to be a Class C property. Because of the subject’s location in a submarket with good occupancy and the lack of new construction due to the absence of available land, an OAR near the lower end of the range indicated by Class C properties in the preceding table is considered appropriate.

Market Participants

The results of recent interviews with knowledgeable real estate professionals are summarized in the following table.



PRESIDENTIAL HOUSE		INCOME CAPITALIZATION APPROACH

OVERALL CAPITALIZATION RATES — APARTMENT

Respondent

Company

OAR

Income

Date of Survey

Robert Givens

CB Richard Ellis, Inc.

5.50%-6.00

Pro Forma

Jun-07

Bob Miller

CB Richard Ellis, Inc.

5.50%-6.00

Pro Forma

Jun-07

Jamie May

JBM Realty Advisors, Inc.

5.75%-6.00

Next Year

Jun-07

Indicated OAR:

6.00%


Compiled by: CBRE

In deriving an appropriate overall capitalization rate for the subject, numerous market participants were interviewed and consulted in gathering applicable information. Three real estate professionals that are active in the local market were interviewed and all indicated that they have recently negotiated similar property sales in the 5.50% to 6.0% OAR range based upon pro forma net operating income. Based upon current market trends, they would anticipate pro forma OARs to fall within the 5.50% to 6.0% range. The respondents further indicated that the subject would be viewed generally favorably as compared to other available properties in the market due to the tight rental market in the area and the lack of new construction.

Band of Investment

The band of the investment technique has been utilized as a crosscheck to the foregoing techniques. The analysis is shown in the following table.

BAND OF INVESTMENT


Mortgage Interest Rate		6.50	%
Mortgage Term (Amortization Period)	30 Years
Mortgage Ratio (Loan-to-Value)		75	%
Mortgage Constant		0.07585
Equity Dividend Rate (EDR)		4	%

Mortgage Requirement		75	%	x	0.07585	=	0.05689
Equity Requirement		25	%	x	0.04000	=	0.01000

		100	%				0.06689

Indicated OAR:							6.70	%


Compiled by: CBRE

Capitalization Rate Conclusion

The following chart summarizes the OAR conclusions.



PRESIDENTIAL HOUSE		INCOME CAPITALIZATION APPROACH

DIRECT CAPITALIZATION SUMMARY


			$/Unit/Yr			Total

Income
Potential Rental Income			$	11,560		$	2,346,636
Loss to Lease	1.50	%		(173	)		(35,200	)
Concessions	0.00	%		0			—

Adjusted Rental Income			$	11,386			2,311,436
Credit Loss	2.00	%		(228	)		(46,229	)
Vacancy	5.00	%		(569	)		(115,572	)

Net Rental Income			$	10,589		$	2,149,636

Other Income				788			160,000

Effective Gross Income			$	11,378		$	2,309,636

Expenses
Real Estate Taxes			$	1,343		$	272,691
Property Insurance				650			131,950
Natural Gas				170			34,510
Electricity				240			48,720
Water & Sewer				250			50,750
Cable Television				0			71
Trash Removal				180			36,540
Administrative & General				350			71,050
Repairs & Maintenance				400			81,200
Painting & Decorating				230			46,690
Grounds (Landscaping)				50			10,150
Management Fee	3.00	%		341			69,289
Administrative Payroll				625			126,875
Maintenance Payroll				500			101,500
Employee Taxes & Benefits				275			55,825
Employee Apts. (Non-Revenue Units)				115			23,345
Advertising & Leasing				210			42,630
Reserves for Replacement				250			50,750

Operating Expenses			$	6,180		$	1,254,536

Operating Expense Ratio							54.32	%
Net Operating Income			$	5,198		$	1,055,100
OAR						/	6.00	%

Indicated Stabilized Value						$	17,584,994
Rounded						$	17,580,000
Deferred Maintenance							—
Lease-Up Discount							—

Value Indication						$	17,584,994
Rounded						$	17,600,000
Value Per Unit						$	86,626

			Cap Rate			Value

Matrix Analysis
				5.75	%	$	18,349,600
				6.00	%	$	17,585,000
				6.25	%	$	16,881,600


Compiled by CBRE


PRESIDENTIAL HOUSE		RECONCILIATION OF VALUE

RECONCILIATION OF VALUE

The value indications from the approaches to value are summarized as follows:

SUMMARY OF VALUE CONCLUSIONS


Cost Approach	$	17,600,000
Sales Comparison Approach	$	17,600,000
Income Capitalization Approach	$	17,600,000

Reconciled Value	$	17,600,000


Compiled by CBRE

The cost approach typically gives a reliable value indication when there is strong support for the replacement cost estimate and when there is minimal depreciation. Considering the substantial amount of depreciation present in the property, the reliability of the cost approach is somewhat diminished. Therefore, the cost approach is considered less applicable to the subject and is used primarily as a test of reasonableness against the other valuation techniques.

In the sales comparison approach, the subject is compared to similar properties that have been sold recently or for which listing prices or offers are known. The sales used in this analysis are considered highly comparable to the subject, and the required adjustments were based on reasonable and well-supported rationale. In addition, market participants are currently analyzing purchase prices on investment properties as they relate to available substitutes in the market. Therefore, the sales comparison approach is considered to provide a reliable value indication, but has been given secondary emphasis in the final value reconciliation.

The income capitalization approach is applicable to the subject since it is an income producing property leased in the open market. Market participants are primarily analyzing properties based on their income generating capability. Therefore, the income capitalization approach is considered a reasonable and substantiated value indicator and has been given primary emphasis in the final value estimate.

Based on the foregoing, the market value of the subject has been concluded as follows:

MARKET VALUE CONCLUSION


Compiled by CBRE


PRESIDENTIAL HOUSE		ASSUMPTIONS AND LIMITING CONDITIONS

ASSUMPTIONS AND LIMITING CONDITIONS

Unless otherwise specifically noted in the body of the report, it is assumed that title to the property or properties appraised is clear and marketable and that there are no recorded or unrecorded matters or exceptions to title that would adversely affect marketability or value. CBRE is not aware of any title defects nor has it been advised of any unless such is specifically noted in the report. CBRE, however, has not examined title and makes no representations relative to the condition thereof. Documents dealing with liens, encumbrances, easements, deed restrictions, clouds and other conditions that may affect the quality of title have not been reviewed. Insurance against financial loss resulting in claims that may arise out of defects in the subject’s title should be sought from a qualified title company that issues or insures title to real property.

Unless otherwise specifically noted in the body of this report, it is assumed: that the existing improvements on the property or properties being appraised are structurally sound, seismically safe and code conforming; that all building systems (mechanical/electrical, HVAC, elevator, plumbing, etc.) are in good working order with no major deferred maintenance or repair required; that the roof and exterior are in good condition and free from intrusion by the elements; that the property or properties have been engineered in such a manner that the improvements, as currently constituted, conform to all applicable local, state, and federal building codes and ordinances. CBRE professionals are not engineers and are not competent to judge matters of an engineering nature. CBRE has not retained independent structural, mechanical, electrical, or civil engineers in connection with this appraisal and, therefore, makes no representations relative to the condition of improvements. Unless otherwise specifically noted in the body of the report: no problems were brought to the attention of CBRE by ownership or management; CBRE inspected less than 100% of the entire interior and exterior portions of the improvements; and CBRE was not furnished any engineering studies by the owners or by the party requesting this appraisal. If questions in these areas are critical to the decision process of the reader, the advice of competent engineering consultants should be obtained and relied upon. It is specifically assumed that any knowledgeable and prudent purchaser would, as a precondition to closing a sale, obtain a satisfactory engineering report relative to the structural integrity of the property and the integrity of building systems. Structural problems and/or building system problems may not be visually detectable. If engineering consultants retained should report negative factors of a material nature, or if such are later discovered, relative to the condition of improvements, such information could have a substantial negative impact on the conclusions reported in this appraisal. Accordingly, if negative findings are reported by engineering consultants, CBRE reserves the right to amend the appraisal conclusions reported herein.

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

We have inspected, as thoroughly as possible by observation, the land; however, it was impossible to personally inspect conditions beneath the soil. Therefore, no representation is made as to these matters unless specifically considered in the appraisal.

All furnishings, equipment and business operations, except as specifically stated and typically considered as part of real property, have been disregarded with only real property being considered in the report unless otherwise stated. Any existing or proposed improvements, on or off-site, as well as any alterations or repairs considered, are assumed to be completed in a workmanlike manner according to standard practices based upon the information submitted to CBRE This report may be subject to amendment upon re-inspection of the subject subsequent to repairs, modifications, alterations and completed new construction. Any estimate of Market Value is as of the date indicated; based upon the information, conditions and projected levels of operation.

It is assumed that all factual data furnished by the client, property owner, owner’s representative, or persons designated by the client or owner to supply said data are accurate and correct unless otherwise specifically noted in the appraisal report. Unless otherwise specifically noted in the appraisal report, CBRE has no reason to believe that any of the data furnished contain any material error. Information and data referred to in this paragraph include, without being limited to, numerical street addresses, lot and block numbers, Assessor’s Parcel Numbers, land dimensions, square footage area of the land, dimensions of the improvements, gross building areas, net rentable areas, usable areas, unit count, room count, rent schedules, income data, historical operating expenses, budgets, and related data. Any material error in any of the above data could have a substantial impact on the conclusions reported. Thus, CBRE reserves the right to amend conclusions reported if made aware of any such error. Accordingly, the client-addressee should carefully review


PRESIDENTIAL HOUSE		ASSUMPTIONS AND LIMITING CONDITIONS

all assumptions, data, relevant calculations, and conclusions within 30 days after the date of delivery of this report and should immediately notify CBRE of any questions or errors.

6.		The date of value to which any of the conclusions and opinions expressed in this report apply, is set forth in the Letter of Transmittal. Further, that the dollar amount of any value opinion herein rendered is based upon the purchasing power of the American Dollar on that date. This appraisal is based on market conditions existing as of the date of this appraisal. Under the terms of the engagement, we will have no obligation to revise this report to reflect events or conditions which occur subsequent to the date of the appraisal. However, CBRE will be available to discuss the necessity for revision resulting from changes in economic or market factors affecting the subject.

7.		CBRE assumes no private deed restrictions, limiting the use of the subject in any way.

8.		Unless otherwise noted in the body of the report, it is assumed that there are no mineral deposit or subsurface rights of value involved in this appraisal, whether they be gas, liquid, or solid. Nor are the rights associated with extraction or exploration of such elements considered unless otherwise stated in this appraisal report. Unless otherwise stated it is also assumed that there are no air or development rights of value that may be transferred.

9.		CBRE is not aware of any contemplated public initiatives, governmental development controls, or rent controls that would significantly affect the value of the subject.

10.		The estimate of Market Value, which may be defined within the body of this report, is subject to change with market fluctuations over time. Market value is highly related to exposure, time promotion effort, terms, motivation, and conclusions surrounding the offering. The value estimate(s) consider the productivity and relative attractiveness of the property, both physically and economically, on the open market.

11.		Any cash flows included in the analysis are forecasts of estimated future operating characteristics are predicated on the information and assumptions contained within the report. Any projections of income, expenses and economic conditions utilized in this report are not predictions of the future. Rather, they are estimates of current market expectations of future income and expenses. The achievement of the financial projections will be affected by fluctuating economic conditions and is dependent upon other future occurrences that cannot be assured. Actual results may vary from the projections considered herein. CBRE does not warrant these forecasts will occur. Projections may be affected by circumstances beyond the current realm of knowledge or control of CBRE

12.		Unless specifically set forth in the body of the report, nothing contained herein shall be construed to represent any direct or indirect recommendation of CBRE to buy, sell, or hold the properties at the value stated. Such decisions involve substantial investment strategy questions and must be specifically addressed in consultation form.

13.		Also, unless otherwise noted in the body of this report, it is assumed that no changes in the present zoning ordinances or regulations governing use, density, or shape are being considered. The property is appraised assuming that all required licenses, certificates of occupancy, consents, or other legislative or administrative authority from any local, state, nor national government or private entity or organization have been or can be obtained or renewed for any use on which the value estimates contained in this report is based, unless otherwise stated.

14.		This study may not be duplicated in whole or in part without the specific written consent of CBRE nor may this report or copies hereof be transmitted to third parties without said consent, which consent CBRE reserves the right to deny. Exempt from this restriction is duplication for the internal use of the client-addressee and/or transmission to attorneys, accountants, or advisors of the client-addressee. Also exempt from this restriction is transmission of the report to any court, governmental authority, or regulatory agency having jurisdiction over the party/parties for whom this appraisal was prepared, provided that this report and/or its contents shall not be published, in whole or in part, in any public document without the express written consent of CBRE which consent CBRE reserves the right to deny. Finally, this report shall not be advertised to the public or otherwise used to induce a third party to purchase the property or to make a “sale” or “offer for sale” of any “security”, as such terms are defined and used in the Securities Act of 1933, as amended. Any third party, not covered by the exemptions herein, who may possess this report, is advised that they should rely on their own independently secured advice for any decision in connection with this property. CBRE shall have no accountability or responsibility to any such third party.

15.		Any value estimate provided in the report applies to the entire property, and any pro ration or division of the title into fractional interests will invalidate the value estimate, unless such pro ration or division of interests has been set forth in the report.

16.		The distribution of the total valuation in this report between land and improvements applies only under the existing program of utilization. Component values for land and/or buildings are not intended to be used in conjunction with any other property or appraisal and are invalid if so used.


PRESIDENTIAL HOUSE		ASSUMPTIONS AND LIMITING CONDITIONS

17.		The maps, plats, sketches, graphs, photographs and exhibits included in this report are for illustration purposes only and are to be utilized only to assist in visualizing matters discussed within this report. Except as specifically stated, data relative to size or area of the subject and comparable properties has been obtained from sources deemed accurate and reliable. None of the exhibits are to be removed, reproduced, or used apart from this report.

18.		No opinion is intended to be expressed on matters which may require legal expertise or specialized investigation or knowledge beyond that customarily employed by real estate appraisers. Values and opinions expressed presume that environmental and other governmental restrictions/conditions by applicable agencies have been met, including but not limited to seismic hazards, flight patterns, decibel levels/noise envelopes, fire hazards, hillside ordinances, density, allowable uses, building codes, permits, licenses, etc. No survey, engineering study or architectural analysis has been made known to CBRE unless otherwise stated within the body of this report. If the Consultant has not been supplied with a termite inspection, survey or occupancy permit, no responsibility or representation is assumed or made for any costs associated with obtaining same or for any deficiencies discovered before or after they are obtained. No representation or warranty is made concerning obtaining these items. CBRE assumes no responsibility for any costs or consequences arising due to the need, or the lack of need, for flood hazard insurance. An agent for the Federal Flood Insurance Program should be contacted to determine the actual need for Flood Hazard Insurance.

19.		Acceptance and/or use of this report constitutes full acceptance of the Contingent and Limiting Conditions and special assumptions set forth in this report. It is the responsibility of the Client, or client’s designees, to read in full, comprehend and thus become aware of the aforementioned contingencies and limiting conditions. Neither the Appraiser nor CBRE assumes responsibility for any situation arising out of the Client’s failure to become familiar with and understand the same. The Client is advised to retain experts in areas that fall outside the scope of the real estate appraisal/consulting profession if so desired.

20.		CBRE assumes that the subject analyzed herein will be under prudent and competent management and ownership; neither inefficient or super-efficient.

21.		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.

22.		No survey of the boundaries of the property was undertaken. All areas and dimensions furnished are presumed to be correct. It is further assumed that no encroachments to the realty exist.

23.		The Americans with Disabilities Act (ADA) became effective January 26, 1992. Notwithstanding any discussion of possible readily achievable barrier removal construction items in this report, CBRE has not made a specific compliance survey and analysis of this property to determine whether it is in conformance 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 ADA. If so, this fact could have a negative effect on the value estimated herein. Since CBRE has no specific information relating to this issue, nor is CBRE qualified to make such an assessment, the effect of any possible non-compliance with the requirements of the ADA was not considered in estimating the value of the subject.

24.		Client shall not indemnify Appraiser or hold Appraiser harmless unless and only to the extent that the Client misrepresents, distorts, or provides incomplete or inaccurate appraisal results to others, which acts of the Client proximately result in damage to Appraiser. The Client shall indemnify and hold Appraiser harmless from any claims, expenses, judgments or other items or costs arising as a result of the Client’s failure or the failure of any of the Client’s agents to provide a complete copy of the appraisal report to any third party. In the event of any litigation between the parties, the prevailing party to such litigation shall be entitled to recover from the other reasonable attorney fees and costs.

25.		The report is for the sole use of the client; however, client may provide only complete, final copies of the appraisal report in its entirety (but not component parts) to third parties who shall review such reports in connection with loan underwriting or securitization efforts. Appraiser is not required to explain or testify as to appraisal results other than to respond to the client for routine and customary questions. Please note that our consent to allow an appraisal report prepared by CBRE or portions of such report, to become part of or be referenced in any public offering, the granting of such consent will be at our sole discretion and, if given, will be on condition that we will be provided with an Indemnification Agreement and/or Non-Reliance letter, in a form and content satisfactory to us, by a party satisfactory to us. We do consent to your submission of the reports to rating agencies, loan participants or your auditors in its entirety (but not component parts) without the need to provide us with an Indemnification Agreement and/or Non-Reliance letter.

26.		As part of the client’s requested scope of work, an estimate of insurable value is provided herein. CBRE has followed traditional appraisal standards to develop a reasonable calculation based upon industry practices and industry accepted publications such as the Marshal Valuation Service handbook. The methodology employed is a derivation of the cost

PRESIDENTIAL HOUSE

assessed value Assessed value applies in ad valorem taxation and refers to the value of a property according to the tax rolls. Assessed value may not conform to market value, but it is usually calculated in relation to a market value base. ^†

cash equivalency The procedure in which the sale prices of comparable properties sold with atypical financing are adjusted to reflect typical market terms.

contract rent The actual rental income specified in a lease. ^‡

effective rent The rental rate net of financial concessions such as periods of no rent during the lease term; may be calculated on a discounted basis, reflecting the time value of money, or on a simple, straight-line basis. ^‡

excess land In regard to an improved site, the land not needed to serve or support the existing improvement. In regard to a vacant site or a site considered as though vacant, the land no needed to accommodate the site’s primary highest and best use. Such land may be separated from the larger site and have its own highest and best use, or it may allow for future expansion of the existing or anticipated improvement. See also surplus land. ^‡

extraordinary assumption An assumption directly related to a specific assignment, which, if found to be false, could alter the appraiser’s opinions or conclusions. Extraordinary assumptions presume as fact otherwise uncertain information about physical, legal, or economic characteristics of the subject property; or about conditions external to the property such as market conditions or trends; or about the integrity of data used in an analysis. See also hypothetical condition. ^‡

fee simple estate Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat. ^‡

floor area ratio (FAR) The relationship between the above-ground floor area of a building, as described by the building code, and the area of the plot on which it stands; in planning and zoning, often expressed as a decimal, e.g., a ratio of 2.0 indicates that the permissible floor area of a building is twice the total land area; also called building-to-land ratio. ^‡

full service lease A lease in which rent covers all operating expenses. Typically, full service leases are combined with an expense stop, the expense level covered by the contract lease payment. Increases in expenses above the expense stop level are passed through to the tenant and are known as expense pass-throughs.

going concern value Going concern value is the value of a proven property operation. It includes the incremental value associated with the business concern, which is distinct from the value of the real estate only. Going concern value includes an intangible enhancement of the value of an operating business enterprise which is produced by the assemblage of the land, building, labor, equipment, and marketing operation. This process creates an economically viable business that is expected to continue. Going concern value refers to the total value of a property, including both real property and intangible personal property attributed to the business value. ^†

gross building area (GBA) The total floor area of a building, including below-grade space but excluding unenclosed areas, measured from the exterior of the walls. Gross building area for office buildings is computed by measuring to the outside finished surface of permanent outer building walls without any deductions. All enclosed floors of the building including basements, mechanical equipment floors, penthouses, and the like are included in the measurement. Parking spaces and parking garages are excluded. ^‡

hypothetical condition That which is contrary to what exists but is supposed for the purpose of analysis. Hypothetical conditions assume conditions contrary to known facts about physical, legal, or economic characteristics of the subject property; or about conditions external to the property, such as market conditions or trends; or about the integrity of data used in an analysis. See also extraordinary assumption. ^‡

insurable value Insurable Value is based on the replacement and/or reproduction cost of physical items that are subject to loss from hazards. Insurable value is that portion of the value of an asset or asset group that is acknowledged or recognized under the provisions of an applicable loss insurance policy. This value is often controlled by state law and varies from state to state. ^†

investment value Investment value is the value of an investment to a particular investor based on his or her investment requirements. In contrast to market value, investment value is value to an individual, not value in the marketplace. Investment value reflects the subjective relationship between a particular investor and a given investment. When measured in dollars, investment value is the price an investor would pay for an investment in light of its perceived capacity to satisfy his or her desires, needs, or investment goals. To estimate investment value, specific investment criteria must be known. Criteria to evaluate a real estate

PRESIDENTIAL HOUSE

investment are not necessarily set down by the individual investor; they may be established by an expert on real estate and its value, that is, an appraiser. ^†

leased fee
See leased fee estate

leased fee estate An ownership interest held by a landlord with the right of use and occupancy conveyed by lease to others. The rights of the lessor (the leased fee owner) and the leased fee are specified by contract terms contained within the lease.^‡

leasehold
See leasehold estate

leasehold estate The interest held by the lessee (the tenant or renter) through a lease conveying the rights of use and occupancy for a stated term under certain conditions.^‡

market rent The most probable rent that a property should bring in a competitive and open market reflecting all conditions and restrictions of the specified lease agreement including term, rental adjustment and revaluation, permitted uses, use restrictions, and expense obligations. ^‡

market value Market value is one of the central concepts of the appraisal practice. Market value is differentiated from other types of value in that it is created by the collective patterns of the market. Market value means the most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, 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) A reasonable time is allowed for exposure in the open market; 2) Both parties are well informed or well advised, and acting in what they consider their own best interests; 3) Buyer and seller are typically motivated; 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.^§

marketing period The time it takes an interest in real property to sell on the market subsequent to the date of an appraisal. ^‡

net lease Lease in which all or some of the operating expenses are paid directly by the tenant. The landlord never takes possession of the expense payment. In a Triple Net Lease all operating expenses are the responsibility of the tenant, including property taxes, insurance, interior maintenance, and other miscellaneous expenses. However, management fees and exterior maintenance are often the responsibility of the lessor in a triple net lease. A modified net lease is one in which some expenses are paid separately by the tenant and some are included in the rent.

net rentable area (NRA) 1) The area on which rent is computed. 2) The Rentable Area of a floor shall be computed by measuring to the inside finished surface of the dominant portion of the permanent outer building walls, excluding any major vertical penetrations of the floor. No deductions shall be made for columns and projections necessary to the building. Include space such as mechanical room, janitorial room, restrooms, and lobby of the floor. *

occupancy rate The relationship or ratio between the income received from the rented units in a property and the income that would be received if all the units were occupied.^‡

prospective value opinion A forecast of the value expected at a specified future date. A prospective value opinion is most frequently sought in connection with real estate projects that are proposed, under construction, or under conversion to a new us, or those that have not achieved sellout or a stabilized level of long-term occupancy at the time the appraisal report is written. ^‡

reasonable exposure time 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 opinion based upon an analysis of past events assuming a competitive and open market. ^††

rent
See
full service lease
net lease
market rent
contract, coupon, face, or nominal rent
effective rent

shell rent The typical rent paid for retail, office, or industrial tenant space based on minimal “shell” interior finishes (called plain vanilla finish in some areas). Usually the landlord delivers the main building shell space or some minimum level of interior build-out, and the tenant completes the interior finish, which can include wall, ceiling, and floor finishes; mechanical systems, interior electric, and plumbing. Typically these

PRESIDENTIAL HOUSE

are long-term leases with tenants paying all or most property expenses. ^‡

surplus land Land not necessary to support the highest and best use of the existing improvement but, because of physical limitations, building placement, or neighborhood norms, cannot be sold off separately. Such land may or may not contribute positively to value and may or may not accommodate future expansion of an existing or anticipated improvement. See also excess land. ^‡

usable area 1) The area actually used by individual tenants. 2) The Usable Area of an office building is computed by measuring to the finished surface of the office side of corridor and other permanent walls, to the center of partitions that separate the office from adjoining usable areas, and to the inside finished surface of the dominant portion of the permanent outer building walls. Excludes areas such as mechanical rooms, janitorial room, restrooms, lobby, and any major vertical penetrations of a multi-tenant floor. ^*

use value Use value is a concept based on the productivity of an economic good. Use value is the value a specific property has for a specific use. Use value focuses on the value the real estate contributes to the enterprise of which it is a part, without regard to the property’s highest and best use or the monetary amount that might be realized upon its sale. ^†

value indication An opinion of value derived through application of the appraisal process. ^‡


^†		The Appraisal of Real Estate, Twelfth Edition, Appraisal Institute, 2001.

^‡		The Dictionary of Real Estate Appraisal, Fourth Edition, Appraisal Institute, 2002.

^§		Office of Comptroller of the Currency (OCC), 12 CFR Part 34, Subpart C – Appraisals, 34.42 (g); Office of Thrift Supervision (OTS), 12 CFR 564.2 (g); Appraisal Institute, The Dictionary of Real Estate Appraisal, 4^th ed. (Chicago: Appraisal Institute, 2002), 177-178. This is also compatible with the RTC, FDIC, FRS and NCUA definitions of market value as well as the example referenced in the Uniform Standards of Professional Appraisal Practice (USPAP).

^*		2000 BOMA Experience Exchange Report, Income/Expense Analysis for Office Buildings (Building Owners and Managers Association, 2000)

^††		Statement on Appraisal Standard No. 6, Appraisal Standards Board of The Appraisal Foundation, September 16, 1993, revised June 15, 2004.

MULTI-FAMILY LAND SALE No. 1

Villa Amalia

Location Data


Location:		3372 N.W. 17th Avenue
		Miami,FL 33142
County:		Miami-Dade
Assessor’s Parcel No:		01-3127-103-0010
Atlas Ref:		N/A

Physical Data


Type:	Multi-Family
Land Area:	Gross	Usable
Acres:	3.5900	2.8293
Square Feet:	156,380	123,244

Topography:	Generally Level
Shape:	Rectangular
Utilities:	All Available
Zoning:	R-4 & G/I
Allowable Bldg Area:	311,647
Floor Area Ratio:	1.99
No. of units:	424
Max FAR:	N/A
Frontage:	N.W. 33rd Street; N.W. 17th Avenue

Analysis


Use At Sale:		Vacated Building
Proposed Use or Dev.		Affordable Housing
Price Per Acre:		$2,403,421
Price Per SF of Land:		$55.18
Price Per Unit:		$16,038
Price Per SF of Bldg:		$21.82

Sale Data


Transaction Type:		Sale
Date:		3/2006
Marketing Time:		N/A
Grantor:		733 NW LLC.
Grantee:		GMN Development, LLC
Document No.:		24348/3560
Sale Price:		$6,800,000
Financing:		Cash to Seller
Cash Eq.Price:		$6,800,000
Onsite/Offsite Costs:		$0
Adj. Sale Price:		$6,800,000
Verification:		Confidential

Comments

This sale reflects the land transfer of 2.83 acres, located at the northwest corner of N.W. 17th Avenue and N.W. 33rd Street, in Miami, Miami-Dade County. At the time of sale, this property was improved with older, dilapidated buildings that were not being utiilzed, and were previously utilized as a religous institution. The site was purchased with the intent to develop affordable housing for senior citizens, and is currently in the application stage of the zoning approval process for 424 units providing a total allowable building area of 311,647 SF. This site purchased March 2006 for $6,800,000, which equates to $55.18/SF of land area, as well as $16,038/unit and $21.82/SF.

RESIDENTIAL SUBDIVISION LAND SALE No. 2

Friendship Tower

Location Data


Location:		1551 N.W. 36th Street
		Miami,FL 33142
County:		Miami-Dade
Assessor’s Parcel No:		01-3123-019-0120
Atlas Ref:		N/A

Physical Data


Type:	Residential Subdivision
Land Area:	Gross	Usable
Acres:	1.0856	0.8039
Square Feet:	47,289	35,018

Topography:	Generally Level
Shape:	Irregular
Utilities:	All Available
Zoning:	C-2
Allowable Bldg Area:	81,214
Floor Area Ratio:	1.72
No. of units:	92
Max FAR:
Frontage:	N.W. 36th Street/N.W. 37th Street;
	N.W. 15th Avenue

Analysis


Use At Sale:		2 Story Bldg w/ Parking Lot
Proposed Use or Dev.		92-Unit Residential Dev
Price Per Acre:		$3,419,579
Price Per SF of Land:		$78.50
Price Per Unit:		$29,880
Price Per SF of Bldg:		$33.85

Sale Data


Transaction Type:		Sale
Date:		1/2007
Marketing Time:		N/A
Grantor:		665 Invest, Inc.
Grantee:		Friendship Tower, LTD.
Document No.:		25331/1009
Sale Price:		$2,725,000
Financing:		Not Available
Cash Eq.Price:		$2,725,000
Onsite/Offsite Costs:		$24,000
Adj. Sale Price:		$2,749,000
Verification:		Confidential

Comments

This sale that reflects the land transfer of 0.80 acres, located at the southwest corner of N.W. 37th Street and N.W. 15th Avenue, within Allapattah, Miami, Miami-Dade County. At the time of the contract, the property was improved with a vacant two-story building that consists of 12,533 SF of net rentable area. The site is under contract with the intent to redevelop the site with affordable housing for senior citizens that will be known as Friendship Tower. The project will consist of one, 10-story building with ground retail space and 92 residential units with a mixture of 54 one-bedroom units and 38 two-bedroom units. This site was originally under contract for $2,800,000 in June 2006. During July 31, 2006, the original purchaser assigned all of its rights to the new purchaser, Friendship Tower, LTD for $2,725,000, which equates to $78.50/SF of land area, $33.85/SF of allowable building SF and $29,880/unit as per the proposed development plan. It should be noted that the property was to close by November 2006, however, was extended for an additional extension fee of $24,000 and closed in January 2007. As of January 2007, the project is in the preliminary stages of development with the City of Miami Planning and Zoning Department.

MOBILE HOME PARK LAND SALE No. 3

Palm Trailer Park

Location Data


Location:		12000 NE 16th Avenue
		North Miami,FL 33161
County:		Miami-Dade
Assessor’s Parcel No:		30-2229-001-0030
Atlas Ref:		N/A

Physical Data


Type:	Mobile Home Park
Land Area:	Gross	Usable
Acres:	8.9600	8.9600
Square Feet:	390,298	390,298

Topography:	Level, At Street Grade
Shape:	Rectangular
Utilities:	All Available
Zoning:	RU-3M
Allowable Bldg Area:	195,149
Floor Area Ratio:	0.50
No. of units:	225
Max FAR:
Frontage:	NE 16th Avenue; NE 14th Avenue

Analysis


Use At Sale:		Mobile Home Park
Proposed Use or Dev.		Apartments
Price Per Acre:		$569,196
Price Per SF of Land:		$13.07
Price Per Unit:		$22,667
Price Per SF of Bldg:		$26.13

Sale Data


Transaction Type:		Sale
Date:		2/2007
Marketing Time:		N/A
Grantor:		Vimarju Corp. & Luxury Inc., et al
Grantee:		Confidential
Document No.:		N/A
Sale Price:		$5,100,000
Financing:		Cash to Seller
Cash Eq.Price:		$5,100,000
Onsite/Offsite Costs:		$0
Adj. Sale Price:		$5,100,000
Verification:		Broker

Comments

This tract is currently improved with the Palm Trailer Park. The property has frontage on both NE 16th Avenue and NE 14th Avenue, south of NE 123rd Street, in North Miami. Plans are to re-develop the site with a 225 unit apartment complex. The density of 25.4 units per acre is an up-zone from the original allowable density of 12.9 units per acre. The sale price per square foot of building area (FAR) is based on the existing density of 0.50 square feet of building area per square foot of land area. The final development plans may change; however, this represents the current right of use of the property. Closing occurred in February 2007; however, the recording information is not yet available.

APARTMENT SALE No. 1

Asbury Park Apartments

Location Data


Location:		17600 N.W. 5th Avenue
		Miami,FL 33169
County:		Miami-Dade
Assessor’s Parcel No:		34-2112-029-0010
Atlas Ref:		N/A

Physical Data


Type:		Multi-family Garden
Land Area:		8.000 Acres
Grs Liv.Area		172,350 SF
Number of Units:		234
Average Unit Size:		737 SF
Year Built:		1972
No. of Stories:		3
Exterior:		Concrete
Condition:		Average
Amenities:		Leasing/management office, on-site laundry, security patrol and tot-lot.

Sale Data


Transaction Type:		Sale
Date:		3/2006
Marketing Time:		N/A
Grantor:		Advenir at Asbury, L.L.C.
Grantee:		Hialeah Realty, L.L.C.
Document No.:		N/A
Sale Price:		$15,400,000
Financing:		Cash to Seller
Cash Eq.Price:		$15,400,000
Req.Capital Cost:		$496,227
Adj. Sale Price:		$15,896,227
Verification:		Grantee

Analysis


Buyers Und. Crit.:		Direct Cap
Overall Cap. Rate (OAR):		6.71 %
Projected IRR:		N/A %
Eff. Gross Multiplier (EGIM):		8.29
Oper. Expense Ratio (OER):		44.35 %
Price Per Square Foot:		$92.23
Price Per Unit:		$67,932

Financial Data


Source:		Buyer
Occupancy at Sale:		96%
Existing or ProForma Inc:		Existing


	Total		Per Unit
Potential Gross Income:	$	1,975,940	$	8,444
Vacancy and Credit Loss:	$	59,278	$	253
Effective Gross Income:	$	1,916,662	$	8,190
Expenses and Reserves:	$	850,000	$	3,632
Net Operating Income:	$	1,066,662	$	4,558

Unit Mix


Unit Type	No.		SF		%

1BR/1BA		126		625		53

2BR/1BA		90		800		38

3BR/2BA		18		1200		7



Totals		234		172,350		100

Comments

This complex of 234 units is located at the southwest corner of N.W. 177th Street and N.W. 5th Avenue, in northwest Miami-Dade County. This complex consists of one, two and three-bedroom unit types, ranging in size from 625 SF to 1,200 SF, with an overall average unit size of 737 SF. The property is currently under contract for $15,400,000 plus a $496,227 adjustment for escrow of required capital improvements. The adjusted sale price of $15,896,227 equates to $67,932 per unit. The financials include existing rental rates in place and historical expense figures. The buyer plans an extensive capital improvement program resulting in higher rental rates and net operating income at the property. This complex previously Sold in March of 2004 for $10,750,000 ($45,940/unit).

APARTMENT SALE No. 2

Summerwinds

Location Data


Location:		490 NW 165th Street Road
		North Miami,FL 33169
County:		Miami-Dade
Assessor’s Parcel No:		30-2113-000-0270
Atlas Ref:		N/A

Physical Data


Type:		Multi-family Mid/High Rise
Land Area:		8.890 Acres
Grs Liv.Area		291,744 SF
Number of Units:		348
Average Unit Size:		838 SF
Year Built:		1972
No. of Stories:		6
Exterior:		Concrete
Condition:		Average
Amenities:		Pool, clubhouse, fitness center

Sale Data


Transaction Type:		Sale
Date:		8/2006
Marketing Time:		N/A
Grantor:		Waterton Summer, LLC
Grantee:		Summerwinds Revocable Statutory
Document No.:		24882/0478
Sale Price:		$32,000,000
Financing:		Market Terms
Cash Eq.Price:		$32,000,000
Req.Capital Cost:		$0
Adj. Sale Price:		$32,000,000
Verification:		Purchase Contract and Buyer

Analysis


Buyers Und. Crit.:		Other
Overall Cap. Rate (OAR):		6.09 %
Projected IRR:		N/A %
Eff. Gross Multiplier (EGIM):		7.91
Oper. Expense Ratio (OER):		51.89 %
Price Per Square Foot:		$109.69
Price Per Unit:		$91,954

Financial Data


Source:		Buyer
Occupancy at Sale:		97.7%
Existing or ProForma Inc:		Pro Forma


	Total		Per Unit
Potential Gross Income:	$	4,151,567	$	11,929
Vacancy and Credit Loss:	$	103,789	$	298
Effective Gross Income:	$	4,047,778	$	11,631
Expenses and Reserves:	$	2,100,445	$	6,035
Net Operating Income:	$	1,947,333	$	5,595

Unit Mix


Unit Type	No.		SF		%

1BR/1BA		156		696		44

2BR/2BA		96		863		27

2BR/2BA		96		1045		27



Totals		348		291,744		100

Comments

This property was purchased for condo conversion. The sale property is a four building six-story mid-rise type development located just southeast of Interstate 95 and the Golden Glades interchange. Rental rates at the time of sale were $889 for the one-bedroom units, and $1,035 and $1,075 for the two-bedroom units, respectively. The pro forma overall average rent is $1.17/SF, about 10% above the existing contract rents. Expenses were based on actual historical, adjusted for higher insurance and including $200/unit for reserves. The sale was renegotiated downward upon receipt of the new insurance policy. The actual insurance quote was $2,390 per unit.

APARTMENT SALE No. 3

Greenwich Park

Location Data


Location:		1550 NE 123rd Street
		North Miami,FL
County:		Miami-Dade
Assessor’s Parcel No:		06-2229-083-0050 +
Atlas Ref:		N/A

Physical Data


Type:		Multi-family Mid/High Rise
Land Area:		9.440 Acres
Grs Liv.Area		332,300 SF
Number of Units:		402
Average Unit Size:		827 SF
Year Built:		1985 thru 1989
No. of Stories:		5
Exterior:		Concrete
Condition:		Average
Amenities:		Gated entry, two pools, fitness center, clubhouse, tennis courts, indoor racquetball court, spa and

Sale Data


Transaction Type:		Contract
Date:		3/2007
Marketing Time:		N/A
Grantor:		Alliance TD, Ltd.
Grantee:		N/A
Document No.:		N/A
Sale Price:		$43,000,000
Financing:		Not Available
Cash Eq.Price:		$43,000,000
Req.Capital Cost:		$0
Adj. Sale Price:		$43,000,000
Verification:		Broker

Analysis


Buyers Und. Crit.:		Direct Cap
Overall Cap. Rate (OAR):		5.45 %
Projected IRR:		N/A %
Eff. Gross Multiplier (EGIM):		8.51
Oper. Expense Ratio (OER):		53.64 %
Price Per Square Foot:		$129.40
Price Per Unit:		$106,965

Financial Data


Source:		Appraiser
Occupancy at Sale:		98%
Existing or ProForma Inc:		Pro Forma


	Total		Per Unit
Potential Gross Income:	$	5,183,408	$	12,894
Vacancy and Credit Loss:	$	129,585	$	322
Effective Gross Income:	$	5,053,823	$	12,571
Expenses and Reserves:	$	2,710,626	$	6,742
Net Operating Income:	$	2,343,197	$	5,828

Unit Mix


Unit Type	No.		SF		%

Studio		6		550		1

1BR/1BA		184		750		45

1BR/1BA		52		750		12

2BR/2BA		80		950		19

2BR/2BA		80		950		19


Totals		402		332,300		100

Comments

This contract for sale is part of the Greenwich Park apartments. One of the buildings is condominiums and is not indlcuded. The property for sale includes six, five-story buildings containing 402 units with a mix of studio, one-bedroom and two-bedroom units. The income and expense data was estimated by the appraiser based on the actual operating statements as of 12/31/2006, adjusted for rents in line with the market, higher taxes at an assessed value of 75% of contract price and insurance at $875 per unit.

APARTMENT SALE No. 4

Somervale Apartments

Location Data


Location:		21010 NW 7th Avenue
		Miami,FL 33169
County:		Miami-Dade
Assessor’s Parcel No:		34-1135-019-0010+
Atlas Ref:		N/A

Physical Data


Type:		Multi-family Mid/High Rise
Land Area:		13.780 Acres
Grs Liv.Area		429,350 SF
Number of Units:		412
Average Unit Size:		1,042 SF
Year Built:		1974
No. of Stories:		7
Exterior:		Concrete
Condition:		Average
Amenities:		Pool, fitness center, business center, tennis courts, laundry facilities

Sale Data


Transaction Type:		Contract
Date:		5/2007
Marketing Time:		N/A
Grantor:		Oasis Club FF, LLC, Oasis Club RA,
Grantee:		Breakstone Homes
Document No.:		N/A
Sale Price:		$39,000,000
Financing:		Cash to Seller
Cash Eq.Price:		$39,000,000
Req.Capital Cost:		$0
Adj. Sale Price:		$39,000,000
Verification:		Purchase Contract & Buyer

Analysis


Buyers Und. Crit.:		Direct Cap and DCF
Overall Cap. Rate (OAR):		6.08 %
Projected IRR:		N/A %
Eff. Gross Multiplier (EGIM):		7.68
Oper. Expense Ratio (OER):		53.31 %
Price Per Square Foot:		$90.83
Price Per Unit:		$94,660

Financial Data


Source:		Appraiser
Occupancy at Sale:		91.3%
Existing or ProForma Inc:		Pro Forma


	Total		Per Unit
Potential Gross Income:	$	5,403,583	$	13,115
Vacancy and Credit Loss:	$	324,215	$	786
Effective Gross Income:	$	5,079,368	$	12,328
Expenses and Reserves:	$	2,708,063	$	6,572
Net Operating Income:	$	2,371,305	$	5,755

Unit Mix


Unit Type	No.		SF		%

Studio		6		625		1

1BR/1BA		89		800		21

1BR/1.5BA		164		915		39

2BR/2BA		28		1205		6

2BR/2BA		69		1320		16

2BR/2BA		56		1420		13


Totals		412		429,350		100

Comments

This project is under contract and slated for condo conversion after the purchase. The income and expense data is based on actual at the time of sale adjusted for taxes in line with the sale price ($1,665/unit) and reserves of $200 were included. Insurance was $900 per unit, while payroll was $1,200 per unit, The other operating expenses totaled $2,608 per unit. The project had recently been renovated including exterior painting and replacement of applicance in 95 of the units. The prospective buyers are budgteing sale prices of $115,000 for the studio units, $134,990 and $145,990 for the one-bedroom units and a range between $179,990 and $199,990 for the two-bedroom units.

APARTMENT COMPARABLE SUMMARY


		No. of		Year Built			Floor	Size		Rent /		Rent /
No.	Name / Location	Units		Occupancy			Plan	(SF)		Month $		SF $

1	Asbury Park		234		1972		1 BD, 1 BA		625		824		1.32
	17600 NW 5th Avenue				88	%	2 BD, 1 BA		800		985		1.23
	Miami Gardens,FL						3 BD, 2 BA		1200		1234		1.03

2	Aventura Harbor		690		1986		Studio		550		895		1.63
	19455 NE 10th Avenue				98	%	1 BR, 1 BA		850		995		1.17
	Miami,FL						2 BR, 1 BA		930		1225		1.32
							2 BR, 2 BA		980		1250		1.28
							2 BR, 2 BA		1200		1350		1.13

3	Forest Place		202		1971		1 BR, 1 BA		911		910		1.00
	1600 NE 135th Street				90	%	1 BR, 1 BA, Den		1200		1105		0.92
	North Miami,FL						1 BR, 1 BA		975		925		0.95
							2 BR, 2 BA		1200		1190		0.99
							2 BR, 2.5 BA PH		2100		2200		1.05

4	Horizons North		276		1988		1 BR, 1.5 BA		690		905		1.31
	665 Ives Dairy Road				96	%	1 BR, 1.5 BA, Pent		1222		1223		1.00
	North Miami Beach,FL						2 BR, 2 BA		955		1052		1.10
							2 BR, 2 BA, Pent		1476		1357		0.92
							2 BR, 2 BA w/Den		1015		1112		1.10
							3 BR, 2 BA		1015		1140		1.12
							3 BR, 2 BA, Pent		1482		1380		0.93

5	Portofino at Biscayne		866		1974		Studio w/out Balcony		510		834		1.64
	1820-1860 NE 142nd Street				99.77	%	Studio w/ Balcony		510		859		1.68
	North Miami,FL						1 BD/1 BA w/out Balc		750		979		1.31
							1 BD/1 BA w/ Balcony		750		1004		1.34
							2 BD/1 BA		900		1194		1.33
							2 BD/2 BA w/Balcony		1070		1294		1.21
							3 BD/2 BA		1300		1385		1.07

6	Somervale Apartments fka Oasis Club		412		1974		Studio		625		875		1.40
	21010 NW 7th Avenue				88	%	1 BD, 1 BA		800		905		1.13
	Miami,FL						1 BD, 1.5 BA		915		920		1.01
							2 BD, 2 BA		1205		1105		0.92
							2 BD, 2 BA		1320		1120		0.85
							2 BD, 2 BA		1420		1140		0.80

APARTMENT COMPARABLE No. 1

Asbury Park

Location Data


Location:		17600 NW 5th Avenue Miami Gardens,FL 33169
County:		Miami-Dade
Assessor’s Parcel No:		34-2112-029-0010
Atlas Ref:		N/A

Physical Data


Type:		Multi-family Mid/High Rise
Number of Units:		234
Year Built:		1972
No. of Stories:		3
Average Unit Size:		737 SF
Exterior:		Masonry
Condition:		Fair
Amenities:		Laundry rooms, elevators, and gated.

Occupancy / Lease Data


Occupancy:		88%
Rent Premiums:		None
Concessions:		None
Typical Lease Term:		12 months
Utilities incl. in Rent:		Water, Sewer, Trash
Tenant Profile:		Mixed
Management Co.:		Manager
Phone No:		(305)652-7858
Survey Date:		7/2007

Rent Summary


Unit Type	No.		SF		Rent		Rent PSF

1 BD, 1 BA		126		625		824		1.32
2 BD, 1 BA		90		800		985		1.23
3 BD, 2 BA		18		1200		1234		1.03


Totals		234		172,350	$	917	$	1.25

Comments

This three-story mid-rise apartment complex is in average condition. The complex contains one, two and three bedroom apartments with an average unit size of 736 square feet. Rent concessions are not currently offered. Last survey 06/2006: overall rents $1.12 psf; occupancy 99%.

APARTMENT COMPARABLE No. 2

Aventura Harbor

Location Data


Location:		19455 NE 10th Avenue
		Miami,FL 33179
County:		Miami-Dade
Assessor’s Parcel No:		30-2205-000-0100R
Atlas Ref:		N/A

Physical Data


Type:		Multi-family Mid/High Rise
Number of Units:		690
Year Built:		1986
No. of Stories:		5
Average Unit Size:		925 SF
Exterior:		Cement Block
Condition:		Average
Amenities:		2 Pools, Spa, 2 Tennis Cts, Playground, Clubhouse, Volleyball, Picnic/BBQ area

Occupancy / Lease Data


Occupancy:		98%
Rent Premiums:		None
Concessions:		None
Typical Lease Term:		7 and 12 months
Utilities incl. in Rent:		Trash and Pest Control
Tenant Profile:		Young professionals
Management Co.:		United Property Mgmt/Lorena
Phone No:		(305)654-7500
Survey Date:		07/2007

Rent Summary


Unit Type	No.		SF		Rent		Rent PSF

Studio		25		550		895		1.63
1 BR, 1 BA		205		850		995		1.17
2 BR, 1 BA		205		930		1225		1.32
2 BR, 2 BA		210		980		1250		1.28
2 BR, 2 BA		45		1200		1350		1.13


Totals		690		638,450	$	1160	$	1.25

Comments

This mid-rise apartment complex is located in northeast Miami-Dade County. The property comprises 690 units housed in 6, five-story buildings having a mix of efficiencies, one- and two-bedroom units. Project density is 41.45 units per acre. Project amenities include 2 swimming pools, 2 lighted tennis courts, a combination clubhouse/office/fitness center, 24-hour controlled access, and 160 parking garage spaces. Rental concessions are not currently offered. Survey 05/2007: overall rents $1.14 psf; occupancy 99%. Survey 04/2007: overall rents $1.09 psf; occupancy 95%. Survey 10/2006: overall rents $1.16 psf; occupancy 99%.

APARTMENT COMPARABLE No. 3

Forest Place

Location Data


Location:		1600 NE 135th Street North Miami,FL 33181
County:		Miami-Dade
Assessor’s Parcel No:		06-2229-033-0100R
Atlas Ref:		N/A

Physical Data


Type:		Multi-family Mid/High Rise
Number of Units:		202
Year Built:		1971
No. of Stories:		9
Average Unit Size:		1,086 SF
Exterior:		Cement Block
Condition:		Average
Amenities:		Laundry Facility, Sauna, Pool and Picnic Area

Occupancy / Lease Data


Occupancy:		90%
Rent Premiums:		Resrv Park $50, Floor $10-105
Concessions:		None
Typical Lease Term:		7 and 12 Months
Utilities incl. in Rent:		Trash & Pest Control
Tenant Profile:		Singles, Families and Professionals
Management Co.:		JMG/Annie
Phone No:		(305)895-0270
Survey Date:		07/2007

Rent Summary


Unit Type	No.		SF		Rent		Rent PSF

1 BR, 1 BA		36		911		910		1.00
1 BR, 1 BA, Den		18		1200		1105		0.92
1 BR, 1 BA		72		975		925		0.95
2 BR, 2 BA		72		1200		1190		0.99
2 BR, 2.5 BA PH		4		2100		2200		1.05


Totals		202		219,396	$	1058	$	0.97

Comments

This 202-unit high rise apartment complex is comprised of two, nine-story buildings with a mix of one, two and penthouse units situated on a 2.8 acre site indicating a density of 72.1 units per acre. Project amenities include laundry facility, sauna, picnic area and pool. Monthly rental premiums include reserved parking $50 and floor elevations ranging from $10 to $105. The tenants are individually metered for water and sewer. Rental concessions are not currently offered. Last survey 07/2007: overall rents $0.91 psf; occupancy 98%. Survey 10/2006: overall rents $0.94 psf; occupancy 92%.

APARTMENT COMPARABLE No. 4

Horizons North

Location Data


Location:		665 Ives Dairy Road North Miami Beach,FL 33179
County:		Miami-Dade
Assessor’s Parcel No:		30-1231-014-0010
Atlas Ref:		N/A

Physical Data


Type:		Multi-family Garden
Number of Units:		276
Year Built:		1988
No. of Stories:		4
Average Unit Size:		1,001 SF
Exterior:		Concrete / Stucco
Condition:		Average
Amenities:		Pool, Gym, Gated Access, Spa, Laundry, Clubhouse

Occupancy / Lease Data


Occupancy:		96%
Rent Premiums:		None
Concessions:		1 month free
Typical Lease Term:		7 – 12 months
Utilities incl. in Rent:		Trash and Pest
Tenant Profile:		Singles and Families
Management Co.:		Fifteenth Mgmt Corp/Behania
Phone No:		305-652-1258
Survey Date:		07/2007

Rent Summary


Unit Type	No.		SF		Rent		Rent PSF

1 BR, 1.5 BA		21		690		905		1.31
1 BR, 1.5 BA, Pent		3		1222		1223		1.00
2 BR, 2 BA		123		955		1052		1.10
2 BR, 2 BA, Pent		16		1476		1357		0.92
2 BR, 2 BA w/Den		60		1015		1112		1.10
3 BR, 2 BA		48		1015		1140		1.12
3 BR, 2 BA, Pent		5		1482		1380		0.93


Totals		276		276,267	$	1095	$	1.09

Comments

Horizons North is a 276 unit apartment complex located in North Miami Beach, Miami-Dade, Florida. The complex is in average condition and contains one, two and three bedroom floorplans. Tenants pay water/sewer. Rental concession currently offered is on all units and includes one month free rent on a 13-month lease. The rates shown above are net of the concessions. Last survey 05/2007: overall rents $1.18 psf; occupancy 95%. Survey 08/2006: overall rents $1.15 psf; occupancy 98%.

APARTMENT COMPARABLE No. 5

Portofino at Biscayne

Location Data


Location:		1820-1860 NE 142nd Street
		North Miami,FL 33181
County:		Miami-Dade
Assessor’s Parcel No:		06-2221-023-0010R
Atlas Ref:		N/A

Physical Data


Type:		Multi-family Mid/High Rise
Number of Units:		866
Year Built:		1974 2004 Renov.
No. of Stories:		10
Average Unit Size:		779 SF
Exterior:		Cement Block
Condition:		Average
Amenities:		2 lighted tennis courts, 2 pools, fitness center, 24-hour attended gatehouse, picnic area

Occupancy / Lease Data


Occupancy:		99.77%
Rent Premiums:		Balcony $25, Renovated $50
Concessions:		None
Typical Lease Term:		7 & 12 Months
Utilities incl. in Rent:		Water & Sewer and Trash Removal
Tenant Profile:		Singles, Families and Professionals
Management Co.:		Riverstone Residential/Lucia
Phone No:		(305)919-9720
Survey Date:		07/2007

Rent Summary


Unit Type	No.		SF		Rent		Rent PSF

Studio w/out Balcony		47		510		834		1.64
Studio w/ Balcony		45		510		859		1.68
1 BD/1 BA w/out Balc		45		750		979		1.31
1 BD/1 BA w/ Balcony		529		750		1004		1.34
2 BD/1 BA		99		900		1194		1.33
2 BD/2 BA w/Balcony		100		1070		1294		1.21
3 BD/2 BA		1		1300		1385		1.07


Totals		866		674,820	$	1042	$	1.34

Comments

This high-rise apartment complex is located in North Miami and comprises five 10-story buildings. The tenant profile at this complex is mainly singles and small families. There are 866 rental units. The apartment complex was renovated in 2004 and 2005. Monthly rental premiums include $50 for units that have been renovated and $25 for units with balconies. Rent concessions are not currently offered. Last survey 04/2007: overall rents $1.34 psf; occupancy 97.8%. Survey 10/2006: overall rents $1.32 psf; occupancy 94.6%.

APARTMENT COMPARABLE No. 6

Somervale Apartments fka Oasis Club

Location Data


Location:		21010 NW 7th Avenue Miami,FL 33169
County:		Miami-Dade
Assessor’s Parcel No:		34-1135-019-0010
Atlas Ref:		N/A

Physical Data


Type:		Multi-family Mid/High Rise
Number of Units:		412
Year Built:		1974
No. of Stories:		7
Average Unit Size:		1,042 SF
Exterior:		CBS
Condition:		Good
Amenities:		Laundry Facilities, Pool, Exercise Center, Business Center, Tennis

Occupancy / Lease Data


Occupancy:		88%
Rent Premiums:		None
Concessions:		None
Typical Lease Term:		12 Months
Utilities incl. in Rent:		Trash
Tenant Profile:		Families, Singles and Professionals
Management Co.:		Fairfield Residential/Javier
Phone No:		(305)651-8773
Survey Date:		07/2007

Rent Summary


Unit Type	No.		SF		Rent		Rent PSF

Studio		6		625		875		1.40
1 BD, 1 BA		89		800		905		1.13
1 BD, 1.5 BA		164		915		920		1.01
2 BD, 2 BA		28		1205		1105		0.92
2 BD, 2 BA		69		1320		1120		0.85
2 BD, 2 BA		56		1420		1140		0.80


Totals		412		429,350	$	992	$	0.95

Comments

This is a 412-unit mid rise apartment complex comprised of three, seven-story buildings with a mix of one and two-bedroom units situated on a 10.6 acres with a density of 38.9 units per acre. Project amenities include laundry facilities (three washer/dryer on every floor), pool, exercise center, business center, tennis court. Tenants pay water/sewer. Last survey 05/2007: overall rents $0.96 psf; occupancy 91.3%. The project is under contract for $39,000,000 and is slated for condo conversion.


	AIMCO 12 Month Operating Trend — Detail
	000500 — Presidential House
	For the Period Ended June 2007 (1212OTD)
APPLICATION :AIMCOPROPERTY	Run Date: 7/10/2007 12:40 PM	USER ID: gcoalson


	JLY 06			AUG 06			SEP 06			OCT 06			NOV 06			DEC 06			JAN 07			FEB 07			MAR 07			APR 07			MAY 07			JUN 07			Total
INCOME
500000 - Market Rent		206,987			200,487			199,357			200,487			200,907			199,777			188,487			186,227			186,227			192,977			200,797			201,740			2,364,457
500001 - Leases Under/Over Schedule		(23,577	)		(17,923	)		7,079			(9,310	)		(11,386	)		(13,410	)		(1,822	)		2,603			2,590			(2,777	)		(11,187	)		(11,382	)		(90,502	)
500501 - Renewal Price Adjustment		(383	)		(383	)		(383	)		(214	)		(190	)		(190	)		(90	)		0			0			0			0			0			(1,833	)
512300 - Commercial Rent		12			12			0			0			0			0			0			0			0			0			0			0			24
Non-subsidized Rental Income		183,039			182,193			206,053			190,963			189,331			186,177			186,575			188,830			188,817			190,200			189,610			190,358			2,272,146

Total Gross Potential Rent		183,039			182,193			206,053			190,963			189,331			186,177			186,575			188,830			188,817			190,200			189,610			190,358			2,272,146

519100 - Concessions Reimbursement		0			0			0			0			0			0			0			0			0			0			135			544			679
625002 - Concessions/Special Promotior		(3,060	)		(7,191	)		(1,383	)		(945	)		(3,057	)		(4,185	)		(7,448	)		(7,614	)		(2,631	)		(279	)		(230	)		(416	)		(38,440	)
625005 - Renewal Concession		(4,059	)		(3,066	)		(1,888	)		(1,127	)		(910	)		(1,019	)		(2,140	)		(1,605	)		(1,171	)		(1,191	)		(1,229	)		(1,121	)		(20,526	)
625006 - Discount - Residents Monthly		(133	)		(181	)		(181	)		(181	)		(175	)		(156	)		(156	)		(156	)		(144	)		(34	)		(34	)		(1	)		(1,532	)
625009 - Concession Amortization		2,433			5,957			306			(175	)		906			2,795			5,988			4,427			(976	)		(2,936	)		(3,446	)		(3,395	)		11,883
Total Concessions		(4,819	)		(4,481	)		(3,146	)		(2,428	)		(3,236	)		(2,566	)		(3,756	)		(4,948	)		(4,922	)		(4,440	)		(4,804	)		(4,389	)		(47,937	)

522000 - Vacancy Loss		(12,308	)		(8,106	)		(3,053	)		(3,778	)		(17,593	)		(20,546	)		(18,982	)		(14,139	)		(4,737	)		(2,104	)		(4,806	)		(9,267	)		(119,418	)
Total Vacancy Loss		(12,308	)		(8,106	)		(3,053	)		(3,778	)		(17,593	)		(20,546	)		(18,982	)		(14,139	)		(4,737	)		(2,104	)		(4,806	)		(9,267	)		(119,418	)

631200 - Administrative Units		(959	)		(919	)		(909	)		(919	)		(919	)		(909	)		(849	)		(829	)		(829	)		(859	)		(899	)		(940	)		(10,739	)
Total Other Rental Losses		(959	)		(919	)		(909	)		(919	)		(919	)		(909	)		(849	)		(829	)		(829	)		(859	)		(899	)		(940	)		(10,739	)

Total Rental Loss		(18,086	)		(13,506	)		(7,108	)		(7,125	)		(21,748	)		(24,021	)		(23,587	)		(19,916	)		(10,488	)		(7,403	)		(10,510	)		(14,596	)		(178,094	)

Net Rental Income		164,953			168,687			198,945			183,837			167,583			162,156			162,989			168,914			178,329			182,797			179,101			175,762			2,094,052

590508 - Resident Util Pymts: Electricity		0			0			0			0			30			0			0			0			0			25			0			0			55
590514 - Resident Util Pymts: Misc		0			196			208			529			1,210			2,014			660			584			1,018			(187	)		856			318			7,405
590530 - Resid Util Pymts: Accr Adjs		0			0			0			0			0			0			0			0			0			0			0			(372	)		(372	)
Total Utility Payments from Reside		0			196			208			529			1,240			2,014			660			584			1,018			(162	)		856			(54	)		7,089

591000 - Laundry Income		2,174			2,017			1,624			2,146			3,603			2,299			0			2,026			1,897			1,403			2,319			2,436			23,944
591007 - AS-Cable TV		0			2,397			0			0			0			1,247			0			2,241			0			2,574			0			0			8,458
591008 - AS - Local Telephone		418			40			0			0			453			(7	)		0			451			0			0			0			199			1,554
591011 - Soft Drink Vending		0			0			0			21			0			2			50			0			0			36			0			0			108
591030 - AS - Accrual Adjustments		0			0			0			0			0			0			0			0			0			0			0			71			71
Total Ancillary Services Income		2,592			4,454			1,624			2,167			4,056			3,541			50			4,718			1,897			4,013			2,319			2,707			34,136

500005 - Month to Month Fee		747			953			1,233			360			193			27			213			453			0			400			407			413			5,400
500006 - Short Term Lease Fee		0			0			0			0			0			0			0			0			0			0			40			75			115
592001 - Late Charges		2,300			2,500			4,500			1,319			3,000			2,000			3,400			3,100			2,500			3,200			3,400			2,900			34,119
592002 - NSF Charges		0			40			120			280			160			40			40			40			120			40			40			80			1,000
592004 - Admin Fees - Resident Charges		0			0			0			0			700			0			0			0			0			0			0			0			700
592006 - Keys, Locks, Lock Changes		0			0			0			50			0			0			0			0			50			0			50			0			150
592009 - Miscellaneous Resident Charge		0			1,191			370			145			848			100			0			0			550			350			725			250			4,529
592010 - Non-refundable Admin Fees		1,400			2,800			1,000			1,400			800			1,200			2,300			3,600			2,600			1,400			800			800			20,100
593000 - Cleaning & Damage Fees		894			1,555			1,034			1,176			968			82			121			92			1,593			1,614			4,094			2,366			15,589


	AIMCO 12 Month Operating Trend — Detail
	000500 — Presidential House
	For the Period Ended June 2007 (1212OTD)
APPLICATION :AIMCOPROPERTY	Run Date: 7/10/2007 12:40 PM	USER ID: gcoalson


	JLY 06			AUG 06			SEP 06			OCT 06			NOV 06			DEC 06			JAN 07			FEB 07			MAR 07			APR 07			MAY 07			JUN 07			Total
593002 - Pet Damage Charges		0			0			877			470			120			0			0			0			0			0			0			0			1,467
593003 - Contra Cleaning and Damage		0			0			0			0			0			0			0			0			(375	)		(363	)		(1,478	)		(772	)		(2,988	)
599002 - Legal Fees		0			0			2,045			1,470			995			245			245			0			980			1,355			1,715			1,035			10,085
599003 - Non-refundable Pet Fees		0			150			0			0			450			0			0			0			150			400			1,150			600			2,900
599004 - Lease Cancellation Fees		63			3,523			2,008			4,164			10,072			1,001			2,727			4,415			2,786			(818	)		6,948			6,784			43,674
599005 - Application Fees		850			1,125			475			425			325			1,700			2,250			3,000			2,325			1,140			375			550			14,540
599007 - Clubhouse Rentals		0			0			0			0			0			0			0			0			0			0			200			0			200
599013 - Monthly Pet Rent		0			17			20			20			49			60			60			60			95			130			171			336			1,019
599014 - Contra Lease Cancellation Fees		0			(1,706	)		(2,556	)		(3,714	)		(2,987	)		(6,793	)		(2,327	)		(1,383	)		(1,395	)		0			(4,541	)		(1,357	)		(28,759	)
Total Miscellaneous Income		6,253			12,148			11,126			7,565			15,693			(338	)		9,029			13,378			11,980			8,848			14,096			14,061			123,839

Total Other Income		8,845			16,798			12,958			10,261			20,988			5,218			9,738			18,679			14,895			12,698			17,270			16,714			165,063

637000 - Bad Debt Expense		(5,951	)		(12,687	)		(9,235	)		(14,201	)		(27,209	)		(6,074	)		(4,924	)		(6,070	)		(1,708	)		(2,921	)		(10,456	)		(11,335	)		(112,770	)
637001 - Bad Debt Collections		0			0			0			0			0			0			175			486			0			0			0			0			661
637003 - Bad Debt Collection: Professior		0			0			48			0			0			0			201			0			0			0			377			0			626
637005 - Bank Reconciliation Adjustment		0			10			(1,347	)		(625	)		0			589			4			(300	)		0			(2	)		(934	)		0			(2,605	)
Total Bad Debt Expense		(5,951	)		(12,677	)		(10,534	)		(14,826	)		(27,209	)		(5,485	)		(4,544	)		(5,885	)		(1,708	)		(2,923	)		(11,012	)		(11,335	)		(114,089	)

Effective Gross Income		167,847			172,808			201,369			179,273			161,363			161,888			168,183			181,709			191,516			192,572			185,358			181,141			2,145,026

OPERATING EXPENSES

615600 - Fire Protection		0			0			0			0			0			0			0			0			0			0			13			78			91
618601 -Cleaning Supplies		0			0			0			0			0			0			0			93			730			0			0			0			823
619300 - Lease - Equipment		0			0			0			0			0			552			0			0			0			0			169			186			906
Common Area Expense		0			0			0			0			0			552			0			93			730			0			182			264			1,821

645001 - Electricity - Vacant		2,239			2,292			2,442			2,560			2,263			1,971			1,714			890			775			673			597			1,078			19,494
645003 - Electricity - List Bills		2,689			2,443			2,496			3,034			2,589			2,450			2,476			2,301			2,508			2,391			2,329			2,208			29,914
645100 - Water		(2,500	)		2,245			1,731			1,547			880			1,500			556			726			727			635			562			248			8,857
645203 - Gas - List Bills		3,161			2,526			2,111			2,525			2,100			2,878			4,254			3,158			3,100			3,250			2,463			2,397			33,924
645300 - Sewer		(1,789	)		6,573			4,358			3,964			3,129			3,000			3,952			2,884			3,004			2,849			2,665			2,372			36,961
647000 - Fees, Penalties - Utilities		0			31			0			0			0			0			291			0			0			0			0			0			321
647001 - Utility Processing Fees		20			25			0			45			160			84			121			140			0			170			50			50			865
649000 - Misc Utility Charges		112			180			156			168			142			198			221			177			150			112			103			115			1,835
Total Utilities Expense		3,933			16,314			13,294			13,844			11,262			12,081			13,584			10,278			10,263			10,080			8,770			8,468			132,171

631701 - Contract Common Area Cleanir		0			0			0			280			0			50			0			0			755			0			420			0			1,505
651900 - Contract Exterminating		305			305			305			620			305			0			624			320			420			320			320			620			4,461
652500 - Contract Trash Removal		1,605			2,403			3,413			2,808			2,041			3,026			1,857			2,396			3,258			3,427			1,617			8,206			36,058
653002 - Contract Courtesy Patrol		255			255			0			0			0			0			0			0			0			0			0			0			509
653004 - Contract Alarm System		0			0			0			0			0			0			0			0			243			0			2,957			(308	)		2,892
653700 - Contract Yards and Grounds		400			900			0			900			900			1,800			900			900			900			900			900			900			10,300
654200 - Contract Repairs		0			0			51			0			0			0			0			28			0			0			0			0			79
654402 - Plumbing Contract		97			(285	)		0			0			0			340			0			0			0			(340	)		0			0			(188	)
654501 - Contract Elevator		542			542			542			542			542			542			1,058			542			542			542			542			(584	)		5,894
654702 - Pool Contract		255			255			595			0			365			305			305			315			305			305			305			460			3,770


	AIMCO 12 Month Operating Trend — Detail
	000500 — Presidential House
	For the Period Ended June 2007 (1212OTD)
APPLICATION :AIMCOPROPERTY	Run Date: 7/10/2007 12:40 PM	USER ID: gcoalson


	JLY 06			AUG 06			SEP 06			OCT 06			NOV 06			DEC 06			JAN 07			FEB 07			MAR 07			APR 07			MAY 07			JUN 07			Total
654703 - Spa-contract cleaning		0			0			0			0			0			0			0			0			0			670			200			328			1,198
669900 - Other Contracts		0			0			0			0			0			7,012			133			865			747			0			248			0			9,005
Total Contract Service		3,458			4,374			4,906			5,150			4,153			13,075			4,877			5,366			7,170			5,824			7,509			9,621			75,482

617600 - Window & Glass Repair		3			20			117			(37	)		58			0			26			75			(140	)		431			402			90			1,045
621300 - Kitchen Equipment		0			0			0			0			0			0			0			0			0			191			0			0			191
651500 - Cleaning Supplies		45			73			278			270			66			0			157			0			(197	)		0			201			661			1,555
652000 - Exterminating Supplies		0			0			0			0			0			0			8			0			0			0			16			0			24
652300 - Gas/Oil/Mileage		15			0			0			0			0			0			0			0			0			26			0			0			41
654004 - Handyman - Other Materials		0			0			0			0			64			0			0			0			0			0			0			0			64
654100 - Repairs/Maint. - Materials		50			0			0			0			0			0			0			0			2,238			79			164			55			2,586
654101 - Electrical Supplies		419			(1	)		775			805			164			528			1,285			824			(286	)		(527	)		1,639			395			6,019
654102 - Plumbing Supplies		93			14			1,635			1,116			343			567			1,182			705			(1,234	)		(114	)		1,766			393			6,466
654103 -Appliance Parts		123			148			27			181			54			69			280			104			53			167			83			320			1,608
654105 - Plumbing Fixtures/Repairs		183			596			52			403			153			5,641			4,094			550			102			(476	)		1,546			(550	)		12,294
654109 - Window Replacement		40			0			0			0			0			0			0			0			0			0			0			0			40
654120 - Keys and Locks		33			4			347			661			74			0			278			133			(162	)		59			711			102			2,239
654125 - Water Extraction		0			0			775			0			0			0			0			0			0			0			0			0			775
654199 - Other Maintenance Materials		62			(1	)		468			2			79			35			185			221			496			480			1,086			247			3,362
654201 - Roof Repairs		0			0			0			0			0			0			0			725			0			0			0			0			725
654205 - Interior Building Improvements		0			0			0			685			0			0			0			990			150			0			76			165			2,065
654206 - Exterior Building Improvements		0			0			9			0			0			0			0			0			0			0			1,000			0			1,009
654601 - HVAC Parts & Supplies		516			5			170			889			0			218			931			1			(18	)		(1	)		299			402			3,410
654700 - Pool Expense		0			0			0			0			0			0			0			0			0			0			46			0			46
655200 - R & M Rebate - MRO		(178	)		(4	)		(86	)		(178	)		(50	)		(7	)		(56	)		(198	)		61			(37	)		(141	)		(206	)		(1,080	)
655201 - R & M Rebate - Other		(193	)		(129	)		54			(44	)		(176	)		(137	)		27			47			(204	)		(102	)		(91	)		13			(933	)
656005 - Light Bulbs		16			(10	)		147			269			115			0			318			142			(7	)		(135	)		289			37			1,182
656300 - Misc.		0			0			0			0			62			0			0			0			0			0			0			0			62
659001 - Fire Protection Equip Maint		0			0			0			0			0			835			1,131			2,148			0			0			0			0			4,114
Total Repairs & Maintenance		1,228			716			4,768			5,023			1,006			7,749			9,845			6,468			852			39			9,092			2,124			48,908

651700 - Contract Cleaning		1,080			490			675			1,590			580			2,010			0			1,735			695			(170	)		205			480			9,370
656002 - Contract Carpet Cleaning and D		950			405			701			795			170			1,315			1,235			30			860			510			605			435			8,011
656003 - Contract Painting - Interior		1,653			965			1,889			1,850			185			1,271			(652	)		1,582			3,181			355			891			2,554			15,724
656101 - Drapery/Miniblinds Repairs		(1	)		0			163			(7	)		0			303			85			0			0			0			7			0			550
656102 - Painting Supplies		680			(35	)		186			807			28			1,351			236			5,270			1,877			(554	)		2,725			(20	)		12,552
Total Turnover Expense		4,363			1,825			3,614			5,036			963			6,249			904			8,617			6,613			141			4,433			3,449			46,207

617104 - Radios/Pagers		0			58			198			29			8			702			18			25			0			439			0			15			1,492
631100 - Office Supplies		491			25			158			20			84			15			(118	)		128			9			171			1,054			748			2,783
631101 - Office Equipment		67			0			0			200			0			375			0			375			0			0			0			245			1,262
631102 - Bank Charges		173			96			0			228			201			0			239			20			138			146			267			75			1,583
631104 - Applicant Screening		0			73			157			0			136			85			280			349			379			370			159			64			2,050
631105 - Uniforms		71			70			120			73			54			70			0			278			58			47			795			58			1,694
631106 - Express Mail, Stamps		25			0			0			160			51			68			80			127			58			144			111			19			845
631108 - Credit Card Service Fees		422			392			336			477			427			366			382			557			517			660			434			551			5,520
631111 - Resident Eviction/Separation		620			0			3,100			773			3,570			1,245			0			1,105			735			1,230			1,600			0			13,978
631112 - Office Supplies Rebates		0			(6	)		0			0			0			0			0			0			0			0			0			0			(6	)
631650 - Fines and Penalties		0			0			0			0			0			0			0			0			1,105			0			0			0			1,105
632500 - Professional Fees		0			0			0			0			0			0			0			0			0			0			0			51			51


	AIMCO 12 Month Operating Trend — Detail
	000500 — Presidential House
	For the Period Ended June 2007 (1212OTD)
APPLICATION :AIMCOPROPERTY	Run Date: 7/10/2007 12:40 PM	USER ID: gcoalson


	JLY 06			AUG 06			SEP 06			OCT 06			NOV 06		DEC 06			JAN 07			FEB 07			MAR 07			APR 07			MAY 07			JUN 07			Total
632525 - H/R-Personnel Costs		0			0			0			173			167		0			67			0			2,985			134			0			9			3,535
632800 - Administrative Support - Fees		0			0			0			0			0		0			0			50			0			0			0			0			50
632918 - Answering Service		59			0			133			59			118		0			0			118			0			0			0			0			487
633400 - Temp Agency Help		0			0			0			0			0		5			0			0			130			105			143			144			527
634000 - Legal Fees		0			95			310			0			2		301			19			226			19			136			245			242			1,596
636000 - Telephone		(611	)		83			2,081			791			796		1,617			712			633			0			548			0			1,394			8,045
639004 - Computer Maint & Supplies		104			104			225			239			325		225			212			112			507			397			755			542			3,748
639007 - Trainings Travel		32			246			168			473			473		481			0			277			640			170			2,651			551			6,160
639099 - Miscellaneous Administrative		0			(670	)		153			0			244		147			0			216			14			389			156			255			903
655100 - Residnt Pmt Platform		0			0			0			0			0		0			9			0			0			0			0			0			9
656006 - Clubhouse Equip/Supplies		177			0			0			630			259		0			0			0			0			0			0			0			1,065
Total Administrative Expenses		1,630			565			7,140			4,324			6,915		5,703			1,899			4,596			7,294			5,085			8,369			4,961			58,482

621003- Periodicals		56			3,974			0			309			34		1,049			0			0			0			0			0			78			5,500
Periodicals		56			3,974			0			309			34		1,049			0			0			0			0			0			78			5,500

611200 - Web Advertising		878			673			223			223			355		1,243			231			223			273			463			318			306			5,408
Internet Leads		878			673			223			223			355		1,243			231			223			273			463			318			306			5,408

621020 - National Web Advertising		0			0			627			970			874		862			863			964			2,756			381			3,459			1,920			13,675
621030 - National Print/Periodical Adverti		0			0			56			568			0		668			797			797			2,165			1,332			3,769			2,895			13,047
National Media Advertising		0			0			683			1,538			874		1,530			1,660			1,760			4,921			1,713			7,228			4,815			26,722

625001 - Referral Fees		500			0			4,500			4,500			0		7,000			3,000			5,750			3,849			2,250			1,500			750			33,599
625008 - Resident Referral Concessions		500			1,000			0			500			500		0			0			500			1,000			1,000			1,000			1,000			7,000
625010 - Resident Referral Amortization		450			(50	)		750			300			200		550			400			(100	)		(500	)		(500	)		(450	)		(450	)		600
625012 - Referral Fee Amortization		(300	)		200			(3,850	)		(3,550	)		950		(5,350	)		(1,050	)		(3,225	)		(939	)		885			1,735			2,560			(11,934	)
Apartment Brokers		1,150			1,150			1,400			1,750			1,650		2,200			2,350			2,925			3,410			3,635			3,785			3,860			29,265

621013 - Leasing Promotions		0			180			3			21			2		103			48			2			0			0			0			30			390
Active Outreach		0			180			3			21			2		103			48			2			0			0			0			30			390

611100 - Marketing Phone Services		59			0			0			25			60		47			49			10			59			0			0			569			878
621007 - Brochures - New Leases		0			0			0			0			91		0			1			1			(91	)		0			0			0			2
621011 - Flags/Banners		0			0			0			0			0		0			0			0			0			25			0			0			25
621012 - Move-in Gifts		0			0			0			0			75		0			0			0			0			0			0			0			75
621050 - Renewal/Resident Gift Expense		0			0			0			41			0		0			0			0			0			0			0			0			41
625000 - Signage		0			14			0			0			133		0			0			0			0			0			49			84			280
626001 - Furniture - Models		0			0			97			0			0		0			0			0			0			0			0			0			97
629002 - Phone Sales		886			723			533			549			401		336			581			1,020			1,132			1,377			889			771			9,199
Point of Sale		945			737			630			614			760		383			632			1,032			1,100			1,402			939			1,423			10,596

621014 - Newsletters		0			0			0			0			0		0			11			0			0			0			0			0			11
621015 - Resident Relations		0			0			0			750			0		0			0			0			0			111			0			64			924
621017 - Resident Collaterals		0			0			36			0			0		0			0			0			0			0			0			0			36
625007 - Resident Relations Concession:		0			0			0			100			0		0			195			480			76			35			0			4,654			5,540
625101 - Resident Functions		132			0			0			0			0		500			0			(4	)		0			0			0			0			628
Retention		132			0			36			850			0		500			206			476			76			146			0			4,718			7,139

621099 - Advertising - Other		222			89			0			0			0		300			8			146			787			292			0			8			1,851


	AIMCO 12 Month Operating Trend — Detail
	000500 — Presidential House
	For the Period Ended June 2007 (1212OTD)
APPLICATION :AIMCOPROPERTY	Run Date: 7/10/2007 12:40 PM	USER ID: gcoalson


	JLY 06			AUG 06			SEP 06			OCT 06			NOV 06			DEC 06			JAN 07			FEB 07			MAR 07			APR 07			MAY 07			JUN 07			Total
Other Marketing		222			89			0			0			0			300			8			146			787			292			0			8			1,851

Total Marketing Expense		3,383			6,802			2,974			5,305			3,675			7,308			5,134			6,564			10,567			7,650			12,269			15,240			86,871

621000 - Leasing Payroll		3,226			2,825			2,039			2,082			3,536			3,700			5,873			4,053			3,950			3,965			3,948			4,066			43,263
627000 - Commissions & Bonus		0			0			0			0			0			0			65			0			123			34			69			89			380
627200 - Miscellaneous Incentives		0			500			700			500			0			0			0			0			0			0			0			0			1,700
627300 - Leasing Commissions		0			1,400			1,200			0			0			0			0			0			0			0			0			0			2,600
627301 - Commission Amortization		(1,780	)		63			(313	)		0			0			0			0			0			0			0			0			0			(2,030	)
627400 - Leasing Renewal Incentives		4,000			675			1,350			0			0			0			0			0			0			0			0			0			6,025
627700 - Leasing Comm - Amortizable		0			0			0			1,100			0			0			840			910			1,050			1,500			625			375			6,400
627701 - Amortization on Leasing Comm		0			0			0			(3,518	)		1,507			1,847			928			(1,100	)		(1,922	)		1,017			1,506			740			1,005
627800 - Renewal Incent - Amortizable		0			0			0			5,300			800			0			0			2,450			3,600			0			0			1,024			13,174
627500 - Coast-to-Coast Incentive		0			0			0			100			0			0			0			0			0			0			0			0			100
631000 - Salaries - Administrative		5,235			3,252			3,569			3,190			2,662			1,093			0			660			0			0			0			0			19,662
633000 - Salaries - Manager		0			0			0			0			0			2,520			4,385			5,519			3,462			3,462			3,462			3,462			26,270
633100 - Employee Apartments		174			174			174			174			174			174			1,923			1,908			1,908			1,978			2,082			2,082			12,923
654000 - Salaries - Maintenance		12,093			7,516			8,638			8,055			8,006			8,204			12,009			8,025			7,674			8,778			7,694			10,099			106,792
659500 - Outsourced Services		75			99			104			128			115			27			143			152			29			242			242			242			1,596
659800 - Payroll Adjustment		(7,346	)		1,637			2,112			1,567			1,294			2,702			0			0			0			0			0			0			1,966
659811 - Admin Salary Expense Adj		0			0			0			0			0			0			(2,088	)		207			235			286			373			290			(697	)
659812 - Mgm’t Salary Expense Adj		0			0			0			0			0			0			(886	)		649			(137	)		245			334			194			399
659813 - Maint Salary Expense Adj		0			0			0			0			0			0			(3,255	)		25			737			1,012			281			1,822			622
659814 - Payroll Tax Expense Adj		0			0			0			0			0			0			(345	)		242			(101	)		(38	)		55			204			17
659815 - Workers Comp Expense Adj		0			0			0			0			0			0			(444	)		160			36			30			42			168			(8	)
659900 - Repairs Payroll Capitalized		(1,588	)		(377	)		(889	)		(907	)		(339	)		(25	)		(660	)		(70	)		53			(204	)		(1,139	)		(2,577	)		(8,723	)
671100 - Payroll Taxes		1,998			1,404			1,472			1,772			1,456			1,498			2,719			2,773			1,307			1,285			1,152			1,394			20,231
671115 - SUI/FUTA Payroll Tax Adjust		0			0			0			0			0			0			0			0			(1,287	)		97			97			97			(997	)
672200 - Workers Compensation		1,473			968			1,049			1,220			900			1,056			1,390			1,565			1,074			1,064			948			1,147			13,855
672300 - Health Ins. & Other Benefits		2,300			1,421			1,016			1,806			1,852			1,997			2,723			2,405			1,382			2,718			2,379			2,766			24,765
672301 - Benefits Expense Adjustment		0			0			0			0			0			0			(908	)		0			908			0			0			0			0
831001 - Ranking Bonus		619			619			475			1,003			1,114			0			991			(2,016	)		926			309			991			358			5,388
Total Payroll Expense		20,479			22,174			22,696			23,573			23,078			24,793			25,402			28,517			25,006			27,779			25,140			28,041			296,678

630306 - Srv Coord. Postage		0			32			60			(93	)		0			0			0			0			0			0			0			0			0
Total Service Coordinator		0			32			60			(93	)		0			0			0			0			0			0			0			0			0

659700 - Construction Period Operating (		(99	)		0			0			0			0			0			0			0			0			0			0			0			(99	)
Total Construction Period Operatir		(99	)		0			0			0			0			0			0			0			0			0			0			0			(99	)

Total Controllable Operating Exper		38,375			52,803			59,452			62,162			51,051			77,510			61,646			70,498			68,495			56,599			75,764			72,167			746,521

Controllable NOI		129,472			120,005			141,917			117,111			110,311			84,378			106,537			111,211			123,022			135,974			109,595			108,973			1,398,506

ON-CONTROLLABLE OPERATING EXPENSES


	AIMCO 12 Month Operating Trend — Detail
	000500 — Presidential House
	For the Period Ended June 2007 (1212OTD)
APPLICATION :AIMCOPROPERTY	Run Date: 7/10/2007 12:40 PM	USER ID: gcoalson


	JLY 06			AUG 06			SEP 06			OCT 06			NOV 06			DEC 06			JAN 07		FEB 07		MAR 07			APR 07			MAY 07		JUN 07			Total
TAXES & INSURANCE

639002 - Ad Valorem Tax Service		0			76			0			0			0			0			0		0		63			7,500			0		48			7,687
671001 - Real Estate Taxes		22,158			22,158			22,158			22,158			(11,626	)		19,087			20,884		20,884		20,884			20,885			20,884		20,884			221,400
671002 - Personal Property Tax		0			0			0			0			2,571			0			0		0		0			0			0		0			2,571
671005 -Tax Refund - Prior Years		0			0			0			0			0			0			0		0		0			(31,867	)		0		0			(31,867	)
671099 - Other Tax		0			0			0			0			0			0			0		0		0			0			115		21			136
671900 - Business Licenses and Permits		7,000			(216	)		824			(174	)		50			310			200		0		0			2,800			0		0			10,794
671902 - Sales and Use Tax		0			0			0			0			0			0			2		0		0			0			0		0			2
832038 - Construction Period Taxes		(402	)		0			(3	)		0			0			0			0		0		0			0			0		0			(405	)
Total Taxes		28,756			22,019			22,979			21,984			(9,005	)		19,397			21,086		20,884		20,947			(682	)		20,999		20,953			210,318

672000 - Hazard Insurance		11,890			11,890			11,890			11,890			11,890			11,890			10,951		10,951		4,419			4,419			4,419		4,419			110,917
672100 - Fidelity Bond Insurance		108			108			120			120			120			120			120		120		120			120			120		120			1,413
672900 - Other Insurance		0			0			0			0			0			0			939		939		939			939			939		1,121			5,814
Total Insurance		11,997			11,997			12,010			12,010			12,010			12,010			12,010		12,010		5,477			5,477			5,477		5,660			118,144

Total Taxes & Insurance		40,754			34,016			34,989			33,994			3,005			31,407			33,096		32,894		26,424			4,796			26,476		26,613			328,462

Reportable NOI		88,719			85,989			106,928			83,117			107,306			52,971			73,442		78,317		96,597			131,178			83,119		82,360			1,070,044

IR NON-CONTROLLABLE OPERATING EXPENSES

632000 - Management Fees		8,496			8,908			8,215			8,340			8,622			7,913			8,368		8,071		9,508			8,567			9,472		8,926			103,405
Total Management & Accounting F		8,496			8,908			8,215			8,340			8,622			7,913			8,368		8,071		9,508			8,567			9,472		8,926			103,405

Management, Acctg & Oth Fees		8,496			8,908			8,215			8,340			8,622			7,913			8,368		8,071		9,508			8,567			9,472		8,926			103,405

Property Net Operating Income		80,222			77,081			98,713			74,777			98,684			45,059			65,074		70,247		87,090			122,611			73,646		73,434			966,639

654215 - Insurance Damage Expense		(1,469	)		7,735			319			(37,590	)		(350	)		0			0		0		4,569			0			975		1,200			(24,611	)
915000 - Casualty Basis Write-Off		0			0			0			0			(250,000	)		0			0		0		(145,927	)		(71,187	)		0		(80,818	)		(547,932	)
Total Casualty G/L		(1,469	)		7,735			319			(37,590	)		(250,350	)		0			0		0		(141,358	)		(71,187	)		975		(79,618	)		(572,543	)

662000 - Deprec. - Buildings		4,550			4,512			4,512			4,564			4,643			6,262			39,336		7,839		7,743			8,555			8,260		8,250			109,026
666000 - Deprec. - Furnishings		11,196			11,114			11,116			11,432			11,380			11,268			9,283		7,058		7,253			7,115			7,185		7,542			112,942
669510 - Deprec. - Non RE Assets		0			0			0			0			0			0			106		106		103			100			100		120			633
Total Depreciation Expense		15,746			15,627			15,628			15,996			16,023			17,529			48,725		15,002		15,099			15,770			15,545		15,912			222,602

834000 - Legal		0			0			0			7			283			0			0		0		0			0			0		0			289
834500 - Prof Exp		0			0			0			0			0			(156	)		0		0		0			1			0		0			(155	)
Total Partnership Legal		0			0			0			7			283			(156	)		0		0		0			1			0		0			134

Total Partnership Expense		0			0			0			7			283			(156	)		0		0		0			1			0		0			134

671205 - Non-Capitalized Redevelopmen		0			0			0			0			0			48,529			0		0		0			0			0		0			48,529
840000 - Prior Year Extraordinary Expen		0			0			0			0			0			0			0		0		0			0			0		531			531


	AIMCO 12 Month Operating Trend — Detail
	000500 — Presidential House
	For the Period Ended June 2007 (1212OTD)
APPLICATION :AIMCOPROPERTY	Run Date: 7/10/2007 12:40 PM	USER ID: gcoalson


	JLY 06			AUG 06			SEP 06			OCT 06			NOV 06			DEC 06			JAN 07			FEB 07			MAR 07			APR 07			MAY 07			JUN 07			Total
Total Other Non-Controllable Expe		0			0			0			0			0			48,529			0			0			0			0			0			531			49,060

Total Noncontrollable Operating E		63,527			66,286			59,151			20,747			(222,417	)		105,221			90,188			55,966			(90,327	)		(42,054	)		52,468			(27,636	)		131,120

Total Operating Expenses		101,902			119,088			118,603			82,909			(171,366	)		182,732			151,834			126,464			(21,833	)		14,545			128,232			44,531			877,641

Operating Income		65,945			53,719			82,766			96,364			332,729			(20,843	)		16,349			55,245			213,349			178,027			57,126			136,610			1,267,386

NON-OPERATING EXPENSES

916003- Amort DLC - 1st		702			702			702			701			702			701			701			701			702			701			701			701			8,418
916023 - Amort DLC - Other		192			192			192			192			192			192			192			192			192			192			192			192			2,303
Total Property Amort Def Loan Exp		893			893			893			893			893			893			893			893			893			893			893			893			10,721

682001 - Interest Expense Secured Fixed		23,338			23,491			23,415			23,104			23,260			23,182			22,865			23,024			22,945			22,621			22,784			22,703			276,731
682002 - Interest Expense Secured Fixed		5,665			5,710			5,687			5,596			5,642			5,619			5,526			5,573			5,550			5,456			5,503			5,479			67,005
Total Property Mortgage Expense		29,002			29,201			29,102			28,699			28,902			28,801			28,391			28,597			28,494			28,077			28,287			28,182			343,736

832037 - Construction Period Interest		(5,792	)		0			(31	)		0			0			0			0			0			0			0			0			0			(5,823	)
Total CAP Interest		(5,792	)		0			(31	)		0			0			0			0			0			0			0			0			0			(5,823	)

Total Interest Expense		24,104			30,094			29,964			29,593			29,795			29,694			29,284			29,491			29,388			28,970			29,180			29,076			348,635

545000 - IN Conc Interest Income		(525	)		(622	)		(356	)		(366	)		(406	)		(238	)		(109	)		(288	)		(577	)		(788	)		(412	)		(761	)		(5,447	)
Total Interest Income		(525	)		(622	)		(356	)		(366	)		(406	)		(238	)		(109	)		(288	)		(577	)		(788	)		(412	)		(761	)		(5,447	)

Total Non-Operating Expenses		23,579			29,473			29,608			29,227			29,390			29,456			29,176			29,202			28,811			28,183			28,769			28,315			343,188

Net Income(Loss)		42,366			24,247			53,158			67,137			303,339			(50,299	)		(12,827	)		26,042			184,538			149,844			28,358			108,295			924,198

CHANGE IN ASSETS
113000 - Tenant/Member Accts. Rec.		(4,744	)		(5,719	)		(4,026	)		8,856			(24,731	)		32,209			2,498			(2,864	)		611			(3,026	)		(9,186	)		(7,079	)		(17,202	)
113600 - Credit Card Receivable		0			0			(1,621	)		2,968			(3,484	)		1,605			1,779			(10,102	)		8,369			788			(4,271	)		759			(3,210	)
114089 - Allowance for Bad Debt		4,576			5,019			(2,481	)		(6,579	)		24,687			(23,098	)		(2,881	)		2,889			(2,740	)		982			2,584			8,031			10,988
Change In Tenants’ Rent Receivab		(168	)		(700	)		(8,128	)		5,244			(3,528	)		10,715			1,396			(10,077	)		6,240			(1,257	)		(10,874	)		1,710			(9,425	)

114000 - Accounts Receivable (Other)		0			0			0			0			0			(217	)		217			(418	)		418			0			0			(213	)		(213	)
114001 - Ancillary Services A/R		0			0			0			0			0			346			0			0			0			0			0			5,715			6,061
114004 - A/R AIMCO		0			0			0			0			0			(106	)		0			106			0			0			0			0			0
114011 - AR - Rebates		(34	)		103			(21	)		128			(132	)		(344	)		263			(368	)		(283	)		881			(385	)		(14	)		(206	)
114075 - A/R - Insurance Proceeds		0			0			0			0			(250,000	)		0			48,569			97,357			(145,927	)		(71,187	)		71,187			(80,818	)		(330,818	)
114205 - Ancillary Inc A/R - Laundry		0			0			0			0			0			0			0			0			0			0			0			(1,965	)		(1,965	)
114206 - Ancillary Inc A/R - Cable TV		0			0			0			0			0			0			0			0			0			0			0			(2,897	)		(2,897	)
114207 - Ancillary Inc A/R - Phone		0			0			0			0			0			0			0			0			0			0			0			(532	)		(532	)
114208 - Ancillary Inc A/R - Vending		0			0			0			0			0			0			0			0			0			0			0			(21	)		(21	)


	AIMCO Statement of Operations — Detail
	000500 — Presidential House
	For the Period Ended June 2007 (12OSD)
APPLICATION : AIMCOPROPERTY	Run Date: 7/10/2007 2:08 PM	USER ID: gcoalson


Current			Current			Current			Previous Yr			Previous Yr				Current			Current			Current			Previous			Previous Yr
Month			Month			Month			Month			Cur Month				YTD			YTD			YTD			Year			Current YTD
Actual			Budget			Variance			Actual			Variance				Actual			Budget			Variance			Actual			Variance
															INCOME

	201,740			190,995			10,745			213,787			(12,047	)	500000 - Market Rent		1,156,455			1,122,197			34,258			1,206,422			(49,967	)
	(11,382	)		0			(11,382	)		(30,693	)		19,311		500001 - Leases Under/Over Schedule		(21,975	)		0			(21,975	)		(114,071	)		92,096
	0			0			0			(383	)		383		500501 - Renewal Price Adjustment		(90	)		0			(90	)		(3,607	)		3,517
	0			0			0			12			(12	)	512300 - Commercial Rent		0			0			0			72			(72	)
	190,358			190,995			(637	)		182,723			7,635		Non-subsidized Rental Income		1,134,390			1,122,197			12,194			1,088,816			45,575

	190,358			190,995			(637	)		182,723			7,635		Total Gross Potential Rent		1,134,390			1,122,197			12,194			1,088,816			45,575

	544			0			544			0			544		519100 - Concessions Reimbursement		679			0			679			0			679
	0			0			0			0			0		522025 - Service Maintenance Guarante		0			0			0			(140	)		140
	(416	)		(6,877	)		6,460			(192	)		(224	)	625002 - Concessions/Special Promotio		(18,619	)		(40,823	)		22,204			(1,351	)		(17,268	)
	(1,121	)		0			(1,121	)		(5,915	)		4,794		625005 - Renewal Concession		(8,457	)		0			(8,457	)		(51,437	)		42,980
	(1	)		0			(1	)		(90	)		89		625006 - Discount - Residents Monthly		(525	)		0			(525	)		(514	)		(11	)
	(3,395	)		0			(3,395	)		(267	)		(3,127	)	625009 - Concession Amortization		(337	)		0			(337	)		(1,642	)		1,305
	(4,389	)		(6,877	)		2,488			(6,465	)		2,076		Total Concessions		(27,260	)		(40,823	)		13,563			(55,084	)		27,824

	(9,267	)		(5,730	)		(3,537	)		(11,866	)		2,599		522000 - Vacancy Loss		(54,034	)		(33,666	)		(20,368	)		(25,375	)		(28,659	)
	(9,267	)		(5,730	)		(3,537	)		(11,866	)		2,599		Total Vacancy Loss		(54,034	)		(33,666	)		(20,368	)		(25,375	)		(28,659	)

	(940	)		0			(940	)		(999	)		59		631200 -Administrative Units		(5,205	)		0			(5,205	)		(999	)		(4,206	)
	(940	)		0			(940	)		(999	)		59		Total Other Rental Losses		(5,205	)		0			(5,205	)		(999	)		(4,206	)

	(14,596	)		(12,607	)		(1,989	)		(19,329	)		4,734		Total Rental Loss		(86,499	)		(74,489	)		(12,010	)		(81,458	)		(5,041	)

	175,762			178,388			(2,626	)		163,393			12,369		Net Rental Income		1,047,891			1,047,708			183			1,007,358			40,533

	0			0			0			0			0		590508 - Resident Util Pymts: Electricity		25			0			25			0			25
	318			0			318			167			151		590514 - Resident Util Pymts: Misc		3,248			0			3,248			1,296			1,953
	(372	)		0			(372	)		0			(372	)	590530 - Resid Util Pymts: Acer Adjs		(372	)		0			(372	)		0			(372	)
	(54	)		0			(54	)		167			(221	)	Total Utility Payments from Reside		2,902			0			2,902			1,296			1,606

	2,436			1,750			686			1,638			798		591000 - Laundry Income		10,081			10,500			(419	)		7,525			2,556
	0			750			(750	)		2,334			(2,334	)	591007 - AS - Cable TV		4,815			4,500			315			6,295			(1,480	)
	199			100			99			0			199		591008 - AS - Local Telephone		650			600			50			923			(273	)
	0			0			0			0			0		591011 - Soft Drink Vending		85			0			85			0			85
	71			0			71			0			71		591030 - AS - Accrual Adjustments		71			0			71			0			71


	AIMCO Statement of Operations — Detail
	000500 — Presidential House
	For the Period Ended June 2007 (12OSD)
APPLICATION :AIMCOPROPERTY	Run Date: 7/10/2007 2:08 PM	USER ID: gcoalson


Current			Current			Current			Previous Yr			Previous Yr				Current			Current			Current			Previous			Previous Yr
Month			Month			Month			Month			Cur Month				YTD			YTD			YTD			Year			Current YTD
Actual			Budget			Variance			Actual			Variance				Actual			Budget			Variance			Actual			Variance
	2,707			2,600			107			3,972			(1,265	)	Total Ancillary Services Income		15,702			15,600			102			14,744			959

	413			500			(87	)		200			213		500005 - Month to Month Fee		1,887			3,000			(1,113	)		1,493			393
	75			0			75			0			75		500006 - Short Term Lease Fee		115			0			115			0			115
	2,900			2,500			400			2,600			300		592001 -Late Charges		18,500			15,000			3,500			12,500			6,000
	80			250			(170	)		200			(120	)	592002 - NSF Charges		360			1,500			(1,140	)		2,200			(1,840	)
	0			0			0			0			0		592006 - Keys, Locks, Lock Changes		100			0			100			0			100
	250			75			175			0			250		592009 - Miscellaneous Resident Charg		1,875			450			1,425			0			1,875
	800			1,000			(200	)		400			400		592010 - Non-refundable Admin Fees		11,500			6,000			5,500			5,000			6,500
	2,366			500			1,866			30			2,336		593000 - Cleaning & Damage Fees		9,880			3,000			6,880			147			9,733
	0			75			(75	)		0			0		593002 - Pet Damage Charges		0			450			(450	)		0			0
	(772	)		0			(772	)		0			(772	)	593003 - Contra Cleaning and Damage		(2,988	)		0			(2,988	)		0			(2,988	)
	1,035			350			685			1,375			(340	)	599002 - Legal Fees		5,330			2,100			3,230			1,878			3,452
	600			0			600			0			600		599003 - Non-refundable Pet Fees		2,300			0			2,300			0			2,300
	6,784			2,000			4,784			2,063			4,722		599004 - Lease Cancellation Fees		22,843			12,000			10,843			14,183			8,659
	550			500			50			635			(85	)	599005 - Application Fees		9,640			3,000			6,640			2,670			6,970
	0			0			0			0			0		599007 - Clubhouse Rentals		200			0			200			0			200
	336			0			336			0			336		599013-Monthly Pet Rent		853			0			853			0			853
	(1,357	)		(1,250	)		(107	)		(805	)		(552	)	599014 - Contra Lease Cancellation Fee		(11,003	)		(7,500	)		(3,503	)		(8,252	)		(2,751	)
	14,061			6,500			7,561			6,698			7,363		Total Miscellaneous Income		71,391			39,000			32,391			31,820			39,571

	16,714			9,100			7,614			10,837			5,877		Total Other Income		89,995			54,600			35,395			47,859			42,136

	(11,335	)		(2,371	)		(8,964	)		(2,825	)		(8,510	)	637000 - Bad Debt Expense		(37,414	)		(13,941	)		(23,473	)		(11,323	)		(26,091	)
	0			0			0			0			0		637001 - Bad Debt Collections		661			0			661			0			661
	0			0			0			98			(98	)	637003 - Bad Debt Collection: Professio		578			0			578			134			444
	0			0			0			5,437			(5,437	)	637005 - Bank Reconciliation Adjustment		(1,232	)		0			(1,232	)		(2,215	)		983
	(11,335	)		(2,371	)		(8,964	)		2,710			(14,045	)	Total Bad Debt Expense		(37,407	)		(13,941	)		(23,467	)		(13,403	)		(24,004	)

	181,141			185,117			(3,976	)		176,940			4,200		Effective Gross Income		1,100,479			1,088,367			12,112			1,041,814			58,665

															OPERATING EXPENSES

	0			200			200			0			0		690000 - Elderly & Congregate Serv Exp		0			1,200			1,200			0			0
	0			200			200			0			0		Total Elderly & Congregate Care		0			1,200			1,200			0			0

	0			200			200			0			0		Total Resident Services Expenses		0			1,200			1,200			0			0
	78			0			(78	)		2,535			2,457		615600-Fire Protection		92			0			(92	)		2,535			2,443


	AIMCO Statement of Operations — Detail
	000500 — Presidential House
	For the Period Ended June 2007 (12OSD)
APPLICATION :AIMCOPROPERTY	Run Date: 7/10/2007 2:08 PM	USER ID: gcoalson


Current			Current		Current			Previous Yr		Previous Yr				Current			Current		Current			Previous		Previous Yr
Month			Month		Month			Month		Cur Month				YTD			YTD		YTD			Year		Current YTD
Actual			Budget		Variance			Actual		Variance				Actual			Budget		Variance			Actual		Variance
	0			0		0			0		0		618601 - Cleaning Supplies		823			0		(823	)		0		(823	)
	186			0		(186	)		0		(186	)	619300 - Lease - Equipment		354			0		(354	)		45		(310	)
	264			0		(264	)		2,535		2,271		Common Area Expense		1,270			0		(1,270	)		2,580		1,310

	1,078			2,000		922			936		(142	)	645001 - Electricity - Vacant		5,727			12,000		6,273			4,413		(1,314	)
	2,208			2,500		292			2,381		172		645003 - Electricity - List Bills		14,213			15,000		787			15,871		1,658
	248			2,000		1,752			985		737		645100 - Water		3,454			12,000		8,546			9,243		5,788
	2,397			2,750		353			2,850		453		645203 - Gas - List Bills		18,623			16,500		(2,123	)		19,489		866
	2,372			4,000		1,628			3,792		1,421		645300 - Sewer		17,725			24,000		6,275			24,438		6,713
	0			25		25			0		0		647000 - Fees, Penalties - Utilities		291			150		(141	)		68		(222	)
	50			15		(35	)		5		(45	)	647001 - Utility Processing Fees		531			90		(441	)		110		(421	)
	115			75		(40	)		112		(3	)	649000 - Misc Utility Charges		879			450		(429	)		575		(304	)
	8,468			13,365		4,897			11,061		2,593		Total Utilities Expense		61,443			80,190		18,747			74,207		12,764

	0			250		250			0		0		631701 - Contract Common Area Cleani		1,175			1,500		325			95		(1,080	)
	620			305		(315	)		305		(315	)	651900 - Contract Exterminating		2,623			1,830		(793	)		1,712		(911	)
	8,206			2,000		(6,206	)		2,893		(5,313	)	652500 - Contract Trash Removal		20,762			12,000		(8,762	)		7,582		(13,180	)
	0			255		255			255		255		653002 - Contract Courtesy Patrol		0			1,530		1,530			2,356		2,356
	(308	)		0		308			0		308		653004 - Contract Alarm System		2,892			0		(2,892	)		0		(2,892	)
	900			1,250		350			0		(900	)	653700 - Contract Yards and Grounds		5,400			7,500		2,100			0		(5,400	)
	0			60		60			0		0		654200 - Contract Repairs		28			360		332			455		427
	0			20		20			0		0		654202 - Maintenance Contract		0			120		120			256		256
	0			60		60			0		0		654402 - Plumbing Contract		(340	)		360		700			920		1,260
	(584	)		542		1,126			542		1,126		654501 - Contract Elevator		2,642			3,252		610			3,252		610
	460			255		(205	)		255		(205	)	654702 - Pool Contract		1,995			1,530		(465	)		1,580		(415	)
	328			0		(328	)		0		(328	)	654703 - Spa-contract cleaning		1,198			0		(1,198	)		0		(1,198	)
	0			0		0			0		0		669900 - Other Contracts		1,993			0		(1,993	)		0		(1,993	)
	9,621			4,997		(4,624	)		4,249		(5,372	)	Total Contract Service		40,366			29,982		(10,384	)		18,208		(22,158	)

	0			25		25			0		0		612800-Irrigation Maint		0			150		150			19		19
	90			25		(65	)		56		(34	)	617600 - Window & Glass Repair		884			150		(734	)		98		(786	)
	0			0		0			0		0		621300 - Kitchen Equipment		191			0		(191	)		0		(191	)
	661			75		(586	)		39		(622	)	651500 - Cleaning Supplies		822			450		(372	)		372		(450	)
	0			0		0			8		8		652000 - Exterminating Supplies		24			0		(24	)		8		(16	)
	0			5		5			0		0		652300 - Gas/Oil/Mileage		26			30		4			47		21
	0			5		5			0		0		652501 - Dumpster Expense		0			30		30			25		25
	0			5		5			0		0		653600 - Landscaping Supplies		0			30		30			66		66
	0			20		20			0		0		654004 - Handyman - Other Materials		0			120		120			202		202
	55			40		(15	)		0		(55	)	654100 - Repairs/Maint. - Materials		2,536			240		(2,296	)		418		(2,119	)
	395			300		(95	)		967		573		654101 - Electrical Supplies		3,329			1,800		(1,529	)		2,437		(893	)
	393			400		7			615		222		654102 - Plumbing Supplies		2,697			2,400		(297	)		3,037		340


	AIMCO Statement of Operations — Detail
	000500 — Presidential House
	For the Period Ended June 2007 (12OSD)
APPLICATION :AIMCOPROPERTY	Run Date: 7/10/2007 2:08 PM	USER ID: gcoalson


Current			Current			Current			Previous Yr			Previous Yr				Current			Current			Current			Previous			Previous Yr
Month			Month			Month			Month			Cur Month				YTD			YTD			YTD			Year			Current YTD
Actual			Budget			Variance			Actual			Variance				Actual			Budget			Variance			Actual			Variance
	320			75			(245	)		62			(258	)	654103 - Appliance Parts		1,007			450			(557	)		690			(317	)
	(550	)		500			1,050			601			1,151		654105 - Plumbing Fixtures/Repairs		5,266			3,000			(2,266	)		5,552			286
	102			100			(2	)		197			96		654120 - Keys and Locks		1,120			600			(520	)		923			(197	)
	0			75			75			0			0		654125 - Water Extraction		0			450			450			0			0
	247			150			(97	)		125			(123	)	654199 - Other Maintenance Materials		2,715			900			(1,815	)		1,070			(1,646	)
	0			0			0			0			0		654201 - Roof Repairs		725			0			(725	)		0			(725	)
	165			0			(165	)		0			(165	)	654205 - Interior Building Improvements		1,380			0			(1,380	)		0			(1,380	)
	0			50			50			0			0		654206 - Exterior Building Improvements		1,000			300			(700	)		585			(415	)
	0			0			0			0			0		654207 - Paving/Concrete/Striping		0			14			14			14			14
	0			30			30			230			230		654500 - Elevator Expense		0			180			180			326			326
	402			200			(202	)		424			22		654601 - HVAC Parts & Supplies		1,613			1,200			(413	)		1,716			103
	0			25			25			0			0		654700 - Pool Expense		46			150			104			17			(29	)
	(206	)		(60	)		146			(102	)		104		655200 - R & M Rebate - MRO		(578	)		(360	)		218			(497	)		81
	13			(25	)		(38	)		109			96		655201 - R & M Rebate - Other		(309	)		(150	)		159			(289	)		20
	37			50			13			108			70		656005 - Light Bulbs		644			300			(344	)		476			(168	)
	0			50			50			0			0		656300 - Misc.		0			300			300			665			665
	0			15			15			0			0		659001 - Fire Protection Equip Maint		3,279			90			(3,189	)		154			(3,125	)
	2,124			2,135			11			3,440			1,316		Total Repairs & Maintenance		28,419			12,824			(15,595	)		18,130			(10,289	)

	480			938			458			992			512		651700 - Contract Cleaning		2,945			4,381			1,436			3,546			601
	435			600			165			558			123		656002 - Contract Carpet Cleaning and		3,675			2,802			(873	)		2,022			(1,653	)
	2,554			1,942			(612	)		2,220			(334	)	656003 - Contract Painting - Interior		7,911			9,074			1,163			8,879			968
	0			24			24			0			0		656099 - Decorating - Contract Other		0			112			112			0			0
	0			0			0			151			151		656101 - Drapery/Miniblinds Repairs		92			0			(92	)		151			60
	(20	)		730			750			1,454			1,475		656102 - Painting Supplies		9,535			3,409			(6,125	)		3,856			(5,678	)
	3,449			4,233			784			5,376			1,927		Total Turnover Expense		24,157			19,779			(4,378	)		18,455			(5,703	)

	15			30			15			18			3		617104 - Radios/Pagers		497			180			(317	)		198			(299	)
	748			250			(498	)		250			(497	)	631100 - Office Supplies		1,990			1,500			(490	)		2,138			148
	245			15			(230	)		0			(245	)	631101 - Office Equipment		621			90			(531	)		73			(548	)
	75			100			26			144			69		631102 - Bank Charges		885			600			(285	)		981			96
	64			100			36			99			35		631104 - Applicant Screening		1,599			600			(999	)		293			(1,306	)
	58			80			22			93			35		631105 - Uniforms		1,236			480			(756	)		645			(591	)
	19			25			6			85			66		631106 - Express Mail, Stamps		540			150			(390	)		271			(269	)
	551			339			(212	)		357			(194	)	631108 - Credit Card Service Fees		3,100			2,017			(1,083	)		2,036			(1,064	)
	0			600			600			1,350			1,350		631111 - Resident Eviction/Separation		4,670			3,600			(1,070	)		3,514			(1,156	)
	0			0			0			0			0		631650 - Fines and Penalties		1,105			0			(1,105	)		0			(1,105	)
	51			0			(51	)		0			(51	)	632500 - Professional Fees		51			0			(51	)		0			(51	)
	9			181			172			0			(9	)	632525 - H/R-Personnel Costs		3,195			1,086			(2,109	)		0			(3,195	)
	0			0			0			0			0		632800 - Administrative Support - Fees		50			0			(50	)		0			(50	)
	0			795			795			0			0		632801 - Prop IT Infrastruct		0			3,180			3,180			0			0


	AIMCO Statement of Operations — Detail
	000500 — Presidential House
	For the Period Ended June 2007 (12OSD)
APPLICATION :AIMCOPROPERTY	Run Date: 7/10/2007 2:08 PM	USER ID: gcoalson


Current			Current			Current			Previous Yr			Previous Yr				Current			Current			Current			Previous			Previous Yr
Month			Month			Month			Month			Cur Month				YTD			YTD			YTD			Year			Current YTD
Actual			Budget			Variance			Actual			Variance				Actual			Budget			Variance			Actual			Variance
	0			50			50			259			259		632918 - Answering Service		118			300			182			642			524
	144			0			(144	)		0			(144	)	633400 - Temp Agency Help		521			0			(521	)		0			(521	)
	242			150			(92	)		99			(142	)	634000 - Legal Fees		887			900			13			537			(350	)
	1,394			600			(794	)		780			(614	)	636000 - Telephone		3,286			3,600			314			5,546			2,260
	542			100			(442	)		404			(138	)	639004 - Computer Maint & Supplies		2,525			600			(1,925	)		1,333			(1,192	)
	0			5			5			0			0		639006 - Parking Expense		0			30			30			16			16
	551			200			(351	)		98			(453	)	639007 - Training & Travel		4,289			1,200			(3,089	)		2,103			(2,185	)
	255			(6	)		(261	)		0			(255	)	639099 - Miscellaneous Administrative		1,029			(33	)		(1,062	)		1,728			699
	0			37			37			167			167		655100 - Residnt Pmt Platform		9			601			592			541			531
	0			25			25			0			0		656006 - Clubhouse Equip/Supplies		0			150			150			133			133
	4,961			3,676			(1,285	)		4,204			(756	)	Total Administrative Expenses		32,204			20,831			(11,373	)		22,730			(9,474	)

	78			122			44			415			336		621003 - Periodicals		78			732			654			1,457			1,378
	78			122			44			415			336		Periodicals		78			732			654			1,457			1,378

	306			203			(103	)		260			(46	)	611200 - Web Advertising		1,814			1,218			(596	)		3,660			1,846
	306			203			(103	)		260			(46	)	Internet Leads		1,814			1,218			(596	)		3,660			1,846

	1,920			930			(990	)		0			(1,920	)	621020 - National Web Advertising		10,343			5,580			(4,763	)		0			(10,343	)
	2,895			339			(2,556	)		0			(2,895	)	621030 - National Print/Periodical Adver		11,754			2,034			(9,720	)		0			(11,754	)
	4,815			1,269			(3,546	)		0			(4,815	)	National Media Advertising		22,097			7,614			(14,483	)		0			(22,097	)

	0			500			500			0			0		621001 - Newspaper Advertising		0			3,000			3,000			0			0
	0			500			500			0			0		Newspapers		0			3,000			3,000			0			0

	750			1,000			250			0			(750	)	625001 - Referral Fees		17,099			6,000			(11,099	)		0			(17,099	)
	1,000			500			(500	)		1,000			0		625008 - Resident Referral Concessions		4,500			3,000			(1,500	)		6,000			1,500
	(450	)		410			860			(50	)		400		625010 - Resident Referral Amortization		(1,600	)		(1,275	)		325			(300	)		1,300
	2,560			200			(2,360	)		150			(2,410	)	625012 - Referral Fee Amortization		(34	)		(100	)		(66	)		1,493			1,527
	3,860			2,110			(1,750	)		1,100			(2,760	)	Apartment Brokers		19,965			7,625			(12,340	)		7,193			(12,772	)

	30			1,052			1,022			101			70		621013 - Leasing Promotions		81			6,312			6,231			101			19
	30			1,052			1,022			101			70		Active Outreach		81			6,312			6,231			101			19

	569			100			(469	)		0			(569	)	611100 - Marketing Phone Services		687			600			(87	)		0			(687	)
	0			50			50			0			0		621007 - Brochures - New Leases		(89	)		300			389			0			89
	0			50			50			0			0		621011 - Flags/Banners		25			300			275			0			(25	)
	0			250			250			0			0		621012 - Move-in Gifts		0			1,500			1,500			0			0
	0			250			250			0			0		621050 - Renewal/Resident Gift Expens		0			1,500			1,500			0			0
	84			50			(34	)		0			(84	)	625000 - Signage		133			300			167			0			(133	)


	AIMCO Statement of Operations - Detail
	000500 — Presidential House
	For the Period Ended June 2007 (12OSD)
APPLICATION :AIMCOPROPERTY	Run Date: 7/10/2007 2:08 PM	USER ID: gcoalson


Current			Current			Current			Previous Yr			Previous Yr				Current			Current			Current			Previous			Previous Yr
Month			Month			Month			Month			Cur Month				YTD			YTD			YTD			Year			Current YTD
Actual			Budget			Variance			Actual			Variance				Actual			Budget			Variance			Actual			Variance
	771			819			49			916			146		629002 - Phone Sales		5,771			4,916			(855	)		5,210			(561	)
	1,423			1,569			146			916			(507	)	Point of Sale		6,527			9,416			2,889			5,210			(1,317	)

	0			50			50			0			0		621014 - Newsletters		11			300			289			0			(11	)
	64			100			36			0			(64	)	621015 - Resident Relations		174			600			426			0			(174	)
	4,654			100			(4,554	)		0			(4,654	)	625007 - Resident Relations Concessior		5,440			600			(4,840	)		0			(5,440	)
	0			250			250			0			0		625101 - Resident Functions		(4	)		1,500			1,504			0			4
	4,718			500			(4,218	)		0			(4,718	)	Retention		5,622			3,000			(2,622	)		0			(5,622	)

	8			250			242			686			678		621099 - Advertising - Other		1,240			1,500			260			1,860			620
	8			250			242			686			678		Other Marketing		1,240			1,500			260			1,860			620

	15,240			7,575			(7,665	)		3,477			(11,762	)	Total Marketing Expense		57,424			40,416			(17,007	)		19,480			(37,944	)

	0			154			154			0			0		610600 - Administrative Salary		0			930			930			0			0
	4,066			3,973			(93	)		2,596			(1,470	)	621000 - Leasing Payroll		25,855			23,966			(1,889	)		21,435			(4,420	)
	89			0			(89	)		0			(89	)	627000 - Commissions & Bonus		380			0			(380	)		0			(380	)
	0			100			100			0			0		627200 - Miscellaneous Incentives		0			600			600			0			0
	0			0			0			450			450		627300 - Leasing Commissions		0			0			0			2,420			2,420
	0			0			0			1,062			1,062		627301 - Commission Amortization		0			0			0			855			855
	0			0			0			250			250		627400 - Leasing Renewal Incentives		0			0			0			7,900			7,900
	375			550			175			0			(375	)	627700 - Leasing Comm - Amortizable		5,300			3,233			(2,067	)		0			(5,300	)
	740			0			(740	)		0			(740	)	627701 - Amortization on Leasing Comn		1,168			0			(1,168	)		0			(1,168	)
	1,024			750			(274	)		0			(1,024	)	627800 - Renewal Incent - Amortizable		7,074			4,500			(2,574	)		0			(7,074	)
	0			0			0			0			0		627500 - Coast-to-Coast Incentive		0			0			0			100			100
	0			2,681			2,681			4,148			4,148		631000 - Salaries - Administrative		660			16,175			15,516			25,067			24,407
	3,462			3,002			(459	)		0			(3,462	)	633000 - Salaries - Manager		23,750			18,108			(5,642	)		0			(23,750	)
	2,082			174			(1,908	)		174			(1,908	)	633100 - Employee Apartments		11,880			1,044			(10,836	)		5,500			(6,380	)
	10,099			7,654			(2,445	)		7,966			(2,133	)	654000 - Salaries - Maintenance		54,280			46,168			(8,112	)		42,869			(11,411	)
	242			17			(225	)		70			(172	)	659500 - Outsourced Services		1,049			572			(477	)		70			(979	)
	0			0			0			2,477			2,477		659800 - Payroll Adjustment		0			0			0			1,101			1,101
	290			0			(290	)		0			(290	)	659811 - Admin Salary Expense Adj		(697	)		0			697			0			697
	194			0			(194	)		0			(194	)	659812 - Mgm’t Salary Expense Adj		399			0			(399	)		0			(399	)
	1,822			0			(1,822	)		0			(1,822	)	659813 - Maint Salary Expense Adj		622			0			(622	)		0			(622	)
	204			0			(204	)		0			(204	)	659814 - Payroll Tax Expense Adj		17			0			(17	)		0			(17	)
	168			0			(168	)		0			(168	)	659815 - Workers Comp Expense Adj		(8	)		0			8			0			8
	(2,577	)		(1,026	)		1,551			(794	)		1,783		659900 - Repairs Payroll Capitalized		(4,597	)		(6,197	)		(1,600	)		(4,330	)		268
	1,394			1,732			338			1,257			(137	)	671100 - Payroll Taxes		10,630			10,437			(194	)		9,097			(1,534	)
	97			0			(97	)		0			(97	)	671115 - SUI/FUTA Payroll Tax Adjust		(997	)		0			997			0			997
	1,147			1,039			(108	)		925			(222	)	672200 - Workers Compensation		7,188			6,264			(924	)		6,554			(634	)
	2,766			2,271			(495	)		1,420			(1,346	)	672300 - Health Ins. & Other Benefits		14,374			13,631			(743	)		11,330			(3,044	)


	AIMCO Statement of Operations — Detail
	000500 — Presidential House
	For the Period Ended June 2007 (12OSD)
APPLICATION :AIMCOPROPERTY	Run Date: 7/10/2007 2:08 PM	USER ID: gcoalson


Current		Current		Current			Previous Yr			Previous Yr				Current			Current		Current			Previous			Previous Yr
Month		Month		Month			Month			Cur Month				YTD			YTD		YTD			Year			Current YTD
Actual		Budget		Variance			Actual			Variance				Actual			Budget		Variance			Actual			Variance
	358		959		601			606			249		831001 - Ranking Bonus		1,559			5,786		4,227			11,014			9,454
	28,041		24,031		(4,010	)		22,608			(5,433	)	Total Payroll Expense		159,884			145,217		(14,667	)		140,981			(18,903	)

	0		0		0			(96	)		(96	)	659700 - Construction Period Operating		0			0		0			(96	)		(96	)
	0		0		0			(96	)		(96	)	Total Construction Period Operating		0			0		0			(96	)		(96	)

	72,167		60,212		(11,955	)		56,855			(15,312	)	Total Controllable Operating Expe		405,167			350,439		(54,728	)		314,675			(90,493	)

	108,973		124,905		(15,932	)		120,086			(11,112	)	Controllable NOI		695,312			737,928		(42,616	)		727,139			(31,828	)

NON-CONTROLLABLE OPERATING EXPENSES

													TAXES & INSURANCE

	48		787		739			0			(48	)	639002 - Ad Valorem Tax Service		7,611			4,723		(2,888	)		7,559			(52	)
	20,884		20,884		0			22,158			1,274		671001 - Real Estate Taxes		125,305			125,307		1			132,950			7,645
	0		0		0			0			0		671003 - Real Estate Tax - Prior Year		0			0		0			0			0
	0		0		0			0			0		671005 - Tax Refund - Prior Years		(31,867	)		0		31,867			666			32,533
	21		0		(21	)		0			(21	)	671099 - Other Tax		136			0		(136	)		0			(136	)
	0		1,037		1,037			216			216		671900 - Business Licenses and Permits		3,000			6,223		3,223			2,626			(374	)
	0		56		56			0			0		671902 - Sales and Use Tax		2			338		336			546			544
	0		0		0			(339	)		(339	)	832038 - Construction Period Taxes		0			0		0			(339	)		(339	)
	20,953		22,765		1,812			22,036			1,082		Total Taxes		104,187			136,590		32,403			144,008			39,820

	4,419		10,951		6,532			11,890			7,471		672000 - Hazard Insurance		39,578			65,707		26,129			59,531			19,953
	120		138		18			108			(12	)	672100 - Fidelity Bond Insurance		719			829		110			645			(74	)
	1,121		1,026		(95	)		0			(1,121	)	672900 - Other Insurance		5,814			5,719		(95	)		110			(5,704	)
	5,660		12,116		6,456			11,997			6,338		Total Insurance		46,111			72,255		26,144			60,286			14,175

	26,613		34,881		8,268			34,033			7,420		Total Taxes & Insurance		150,298			208,845		58,547			204,294			53,996

	82,360		90,025		(7,664	)		86,052			(3,692	)	Reportable NOI		545,013			529,083		15,930			522,845			22,168

OTHER NON-CONTROLLABLE OPERATING EXPENSES

	8,926		9,295		368			8,787			(140	)	632000 - Management Fees		52,912			54,651		1,739			51,407			(1,504	)


	AIMCO Statement of Operations — Detail
	000500 — Presidential House
	For the Period Ended June 2007 (12OSD)
APPLICATION :AIMCOPROPERTY	Run Date: 7/10/2007 2:08 PM	USER ID: gcoalson


Current			Current		Current			Previous Yr		Previous Yr				Current			Current			Current			Previous			Previous Yr
Month			Month		Month			Month		Cur Month				YTD			YTD			YTD			Year			Current YTD
Actual			Budget		Variance			Actual		Variance				Actual			Budget			Variance			Actual			Variance
	8,926			9,295		368			8,787		(140	)	Total Management & Accounting F		52,912			54,651			1,739			51,407			(1,504	)

	8,926			9,295		368			8,787		(140	)	Management, Acctg & Oth Fees		52,912			54,651			1,739			51,407			(1,504	)

	73,434			80,730		(7,296	)		77,266		(3,832	)	Property Net Operating Income		492,102			474,432			17,670			471,438			20,664

	1,200			0		(1,200	)		44,626		43,426		654215 - Insurance Damage Expense		6,744			0			(6,744	)		(72,569	)		(79,313	)
	(80,818	)		0		80,818			0		80,818		915000 - Casualty Basis Write-Off		(297,932	)		0			297,932			0			297,932
	(79,618	)		0		79,618			44,626		124,244		Total Casualty GIL		(291,188	)		0			291,188			(72,569	)		218,619

	8,250			7,000		(1,250	)		4,676		(3,574	)	662000 - Deprec. - Buildings		79,983			(370,697	)		(450,680	)		27,200			(52,782	)
	7,542			7,006		(536	)		11,082		3,541		666000 - Deprec. - Furnishings		45,437			44,793			(644	)		65,391			19,954
	120			100		(20	)		0		(120	)	669510 - Deprec. - Non RE Assets		633			613			(20	)		0			(633	)
	15,912			14,106		(1,806	)		15,759		(153	)	Total Depreciation Expense		126,053			(325,291	)		(451,344	)		92,591			(33,462	)

	0			0		0			0		0		834000 - Legal		0			0			0			13			13
	0			0		0			504		504		834500 - Prof Exp		1			0			(1	)		504			503
	0			0		0			504		504		Total Partnership Legal		1			0			(1	)		517			516

	0			0		0			119		119		831600 - Txs Fees & Lic		0			0			0			119			119
	0			0		0			800		800		839000 - Partnership Misc Exp		0			0			0			800			800
	0			0		0			919		919		Total Partnership Other Expense		0			0			0			919			919

	0			0		0			1,423		1,423		Total Partnership Expense		1			0			(1	)		1,436			1,435

	0			0		0			0		0		793100 - Grant Expense		0			0			0			312			312
	531			0		(531	)		0		(531	)	840000 - Prior Year Extraordinary Exper		531			0			(531	)		0			(531	)
	531			0		(531	)		0		(531	)	Total Other Non-Controllable Expe		531			0			(531	)		312			(219	)

	(27,636	)		58,281		85,917			104,627		132,263		Total Noncontrollable Operating E		38,606			(61,796	)		(100,402	)		277,471			238,865

	44,531			118,493		73,962			161,482		116,951		Total Operating Expenses		443,774			288,644			(155,130	)		592,146			148,372

	136,610			66,624		69,985			15,459		121,151		Operating Income		656,705			799,724			(143,018	)		449,668			207,037

NON-OPERATING EXPENSES

	701			701		0			702		0		916003 - Amort DLC - 1st		4,209			4,209			0			4,209			0


	AIMCO Statement of Operations — Detail
	000500 — Presidential House
	For the Period Ended December 2006 (12OSD1)
APPLICATION :AIMCOPROPERTY	Run Date: 4/27/2007 9:33 AM	USER ID: gcoalson


Current			Current			Current			Previous Yr			Previous Yr				Current			Current			Current			Previous			Previous Yr
Month			Month			Month			Month			Cur Month				YTD			YTD			YTD			Year			Current YTD
Actual			Budget			Variance			Actual			Variance				Actual			Budget			Variance			Actual			Variance
INCOME

	199,777			184,552			15,225			186,437			13,340		500000 - Market Rent		2,414,424			2,190,406			224,018			2,224,864			189,560
	(13,410	)		0			(13,410	)		(8,258	)		(5,152	)	500001 - Leases Under/Over Schedule		(182,598	)		0			(182,598	)		(186,576	)		3,977
	(190	)		0			(190	)		(829	)		639		500501 - Renewal Price Adjustment		(5,350	)		0			(5,350	)		(4,618	)		(732	)
	0			132			(132	)		12			(12	)	512300 - Commercial Rent		96			1,568			(1,472	)		1,453			(1,357	)

	186,177			184,685			1,492			177,362			8,815		Non-subsidized Rental Income		2,226,571			2,191,974			34,597			2,035,123			191,448


	186,177			184,685			1,492			177,362			8,815		Total Gross Potential Rent		2,226,571			2,191,974			34,597			2,035,123			191,448

	0			0			0			0			0		522025 - Service Maintenance Guarantee		(140	)		0			(140	)		0			(140	)
	(4,185	)		0			(4,185	)		(264	)		(3,921	)	625002 - Concessions/Special Promotion		(21,172	)		0			(21,172	)		(3,494	)		(17,678	)
	(1,019	)		(11,122	)		10,102			(11,051	)		10,032		625005 - Renewal Concession		(63,506	)		(131,999	)		68,493			(98,387	)		34,881
	(156	)		0			(156	)		(270	)		114		625006 - Discount - Residents Monthly		(1,521	)		0			(1,521	)		(2,460	)		939
	2,795			0			2,795			385			2,410		625009 - Concession Amortization		10,579			0			10,579			1,522			9,057

	(2,566	)		(11,122	)		8,555			(11,200	)		8,634		Total Concessions		(75,761	)		(131,999	)		56,238			(102,820	)		27,059

	(20,546	)		(6,193	)		(14,353	)		(2,207	)		(18,339	)	522000 - Vacancy Loss		(90,759	)		(73,503	)		(17,255	)		(47,814	)		(42,945	)

	(20,546	)		(6,193	)		(14,353	)		(2,207	)		(18,339	)	Total Vacancy Loss		(90,759	)		(73,503	)		(17,255	)		(47,814	)		(42,945	)

	(909	)		0			(909	)		0			(909	)	631200 - Administrative Units		(6,533	)		0			(6,533	)		0			(6,533	)

	(909	)		0			(909	)		0			(909	)	Total Other Rental Losses		(6,533	)		0			(6,533	)		0			(6,533	)


	(24,021	)		(17,315	)		(6,707	)		(13,407	)		(10,614	)	Total Rental Loss		(173,053	)		(205,503	)		32,450			(150,634	)		(22,419	)


	162,156			167,370			(5,214	)		163,955			(1,799	)	Net Rental Income		2,053,519			1,986,471			67,047			1,884,489			169,029

	0			0			0			0			0		590508 - Resident Util Pymts: Electricity		30			254			(224	)		163			(133	)
	2,014			0			2,014			0			2,014		590514 - Resident Util Pymts: Misc		5,453			0			5,453			0			5,453

	2,014			0			2,014			0			2,014		Total Utility Payments from Reside		5,483			254			5,228			163			5,319

	2,299			150			2,149			2,746			(447	)	591000 - Laundry Income		21,388			1,800			19,588			16,394			4,994
	1,247			0			1,247			2,677			(1,430	)	591007 - AS - Cable TV		9,939			0			9,939			9,399			540
	(7	)		40			(47	)		412			(419	)	591008 - AS - Local Telephone		1,827			480			1,347			1,859			(31	)
	2			10			(8	)		18			(15	)	591011 - Soft Drink Vending		23			120			(97	)		123			(100	)

	3,541			200			3,341			5,852			(2,311	)	Total Ancillary Services Income		33,177			2,400			30,777			27,775			5,402

	27			300			(273	)		7			20		500005 - Month to Month Fee		5,007			3,600			1,407			2,107			2,900
	2,000			1,500			500			1,220			780		592001 - Late Charges		28,119			18,000			10,119			20,909			7,209
	40			250			(210	)		120			(80	)	592002 - NSF Charges		2,840			3,000			(160	)		2,129			711


	AIMCO Statement of Operations — Detail
	000500 — Presidential House
	For the Period Ended December 2006 (12OSD1)
APPLICATION :AIMCOPROPERTY	Run Date: 4/27/2007 9:33 AM	USER ID: gcoalson


Current			Current			Current			Previous Yr			Previous Yr				Current			Current			Current			Previous			Previous Yr
Month			Month			Month			Month			Cur Month				YTD			YTD			YTD			Year			Current YTD
Actual			Budget			Variance			Actual			Variance				Actual			Budget			Variance			Actual			Variance
	0			0			0			0			0		592004 - Admin Fees - Resident Charges		700			0			700			0			700
	0			25			(25	)		0			0		592006 - Keys, Locks, Lock Changes		50			300			(250	)		50			0
	100			0			100			0			100		592009 - Miscellaneous Resident Charge		2,654			0			2,654			373			2,280
	1,200			500			700			800			400		592010 - Non-refundable Admin Fees		13,600			6,000			7,600			6,400			7,200
	82			50			32			230			(148	)	593000 - Cleaning & Damage Fees		5,856			600			5,256			1,973			3,884
	0			718			(718	)		0			0		593002 - Pet Damage Charges		1,467			1,292			175			563			904
	245			75			170			300			(55	)	599002 - Legal Fees		6,633			900			5,733			1,987			4,646
	0			0			0			0			0		599003 - Non-refundable Pet Fees		600			0			600			0			600
	1,001			1,000			1			2,133			(1,132	)	599004 - Lease Cancellation Fees		35,014			12,000			23,014			12,611			22,404
	1,700			250			1,450			390			1,310		599005 - Application Fees		7,570			3,000			4,570			3,900			3,670
	60			20			40			0			60		599013 - Monthly Pet Rent		166			240			(74	)		186			(20	)
	(6,793	)		(125	)		(6,668	)		(620	)		(6,173	)	599014 - Contra Lease Cancellation Fees		(26,008	)		(1,500	)		(24,508	)		(6,463	)		(19,545	)
	0			427			(427	)		0			0		599099 - Miscellaneous Income		0			427			(427	)		0			0
	0			0			0			0			0		599200 - Fee Adjustments		0			0			0			(25	)		25

	(338	)		4,990			(5,328	)		4,580			(4,918	)	Total Miscellaneous Income		84,268			47,859			36,409			46,700			37,567


	5,218			5,190			28			10,432			(5,215	)	Total Other Income		122,928			50,514			72,414			74,639			48,289

	(6,074	)		(1,726	)		(4,348	)		(3,053	)		(3,020	)	637000 - Bad Debt Expense		(86,679	)		(20,370	)		(66,309	)		(28,717	)		(57,962	)
	0			0			0			0			0		637003 - Bad Debt Collection: Profession		183			0			183			1,208			(1,025	)
	589			0			589			(4,408	)		4,997		637005 - Bank Reconciliation Adjustment		(3,588	)		0			(3,588	)		(12,995	)		9,407

	(5,485	)		(1,726	)		(3,759	)		(7,462	)		1,977		Total Bad Debt Expense		(90,085	)		(20,370	)		(69,715	)		(40,504	)		(49,580	)


	161,888			170,834			(8,946	)		166,926			(5,037	)	Effective Gross Income		2,086,361			2,016,615			69,746			1,918,624			167,737


															OPERATING EXPENSES

	0			0			0			4,293			4,293		615600 - Fire Protection		2,535			0			(2,535	)		7,225			4,691
	552			0			(552	)		0			(552	)	619300 - Lease - Equipment		596			0			(596	)		0			(596	)

	552			0			(552	)		4,293			3,741		Common Area Expense		3,131			0			(3,131	)		7,225			4,094

	1,971			200			(1,771	)		791			(1,181	)	645001 - Electricity - Vacant		18,180			2,400			(15,780	)		6,121			(12,059	)
	2,450			1,798			(652	)		4,488			2,038		645003 - Electricity - List Bills		31,572			25,680			(5,892	)		26,282			(5,290	)
	1,500			801			(699	)		1,331			(169	)	645100 - Water		14,645			11,448			(3,197	)		13,240			(1,405	)
	2,878			3,000			122			3,050			171		645203 - Gas - List Bills		34,790			36,000			1,210			30,489			(4,301	)
	3,000			3,027			27			4,209			1,209		645300 - Sewer		43,674			43,248			(426	)		39,044			(4,630	)
	0			0			0			68			68		647000 - Fees, Penalties - Utilities		99			0			(99	)		139			40
	84			25			(59	)		0			(84	)	647001 - Utility Processing Fees		444			294			(150	)		0			(444	)
	198			0			(198	)		30			(168	)	649000 - Misc Utility Charges		1,531			0			(1,531	)		86			(1,446	)


	AIMCO Statement of Operations — Detail
	000500 — Presidential House
	For the Period Ended December 2006 (12OSD1)
APPLICATION :AIMCOPROPERTY	Run Date: 4/27/2007 9:33 AM	USER ID: gcoalson


Current		Current		Current			Previous Yr		Previous Yr				Current		Current		Current			Previous		Previous Yr
Month		Month		Month			Month		Cur Month				YTD		YTD		YTD			Year		Current YTD
Actual		Budget		Variance			Actual		Variance				Actual		Budget		Variance			Actual		Variance
	12,081		8,851		(3,231	)		13,965		1,883		Total Utilities Expense		144,935		119,070		(25,865	)		115,400		(29,535	)

	50		42		(8	)		100		50		631701 - Contract Common Area Cleanir		425		500		75			413		(13	)
	0		265		265			254		254		651900 - Contract Exterminating		3,550		3,180		(370	)		3,381		(169	)
	3,026		2,000		(1,026	)		1,605		(1,421	)	652500 - Contract Trash Removal		22,878		24,000		1,122			22,988		109
	0		600		600			528		528		653002 - Contract Courtesy Patrol		2,866		7,200		4,334			3,237		371
	0		42		42			0		0		653004 - Contract Alarm System		0		500		500			251		251
	1,800		167		(1,633	)		0		(1,800	)	653700 - Contract Yards and Grounds		4,900		2,000		(2,900	)		2,812		(2,088	)
	0		125		125			0		0		654200 - Contract Repairs		506		1,500		994			1,992		1,486
	0		0		0			0		0		654202 - Maintenance Contract		256		0		(256	)		0		(256	)
	0		42		42			0		0		654302 - Electrical - Contract		0		500		500			0		0
	340		42		(298	)		150		(190	)	654402 - Plumbing Contract		1,072		500		(572	)		956		(116	)
	542		560		18			657		115		654501 - Contract Elevator		6,504		6,720		216			6,752		248
	305		275		(30	)		1,044		739		654702 - Pool Contract		3,355		3,300		(55	)		3,269		(86	)
	7,012		17		(6,995	)		0		(7,012	)	669900 - Other Contracts		7,012		200		(6,812	)		67		(6,945	)

	13,075		4,175		(8,900	)		4,337		(8,738	)	Total Contract Service		53,324		50,100		(3,224	)		46,117		(7,207	)

	0		29		29			0		0		612800 - Irrigation Maint		19		350		331			211		192
	0		42		42			0		0		617600 - Window & Glass Repair		260		500		240			86		(174	)
	0		42		42			89		89		651500 - Cleaning Supplies		1,105		500		(605	)		367		(738	)
	0		0		0			0		0		652000 - Exterminating Supplies		8		0		(8	)		0		(8	)
	0		33		33			20		20		652300 - Gas/Oil/Mileage		62		400		338			111		49
	0		33		33			0		0		652501 - Dumpster Expense		25		400		375			176		151
	0		13		13			0		0		653600 - Landscaping Supplies		66		150		84			84		19
	0		0		0			81		81		654003 - Handyman Materials		0		0		0			117		117
	0		75		75			10		10		654004 - Handyman - Other Materials		265		900		635			494		229
	0		200		200			248		248		654100 - Repairs/Maint. - Materials		467		2,400		1,933			2,383		1,915
	528		200		(328	)		586		59		654101 - Electrical Supplies		5,126		2,400		(2,726	)		3,198		(1,929	)
	567		250		(317	)		1,286		719		654102 - Plumbing Supplies		6,805		3,000		(3,805	)		4,807		(1,999	)
	69		125		56			133		64		654103 - Appliance Parts		1,291		1,500		209			903		(388	)
	0		0		0			0		0		654104 - Equipment Rental/Repair		0		0		0			6		6
	5,641		150		(5,491	)		325		(5,316	)	654105 - Plumbing Fixtures/Repairs		12,580		1,800		(10,780	)		2,210		(10,370	)
	0		21		21			0		0		654109 - Window Replacement		40		250		210			110		70
	0		75		75			147		147		654120 - Keys and Locks		2,042		900		(1,142	)		626		(1,416	)
	0		0		0			0		0		654125 - Water Extraction		775		0		(775	)		0		(775	)
	35		200		165			237		202		654199 - Other Maintenance Materials		1,716		2,400		684			2,149		433
	0		0		0			0		0		654205 - Interior Building Improvements		685		0		(685	)		0		(685	)
	0		250		250			41		41		654206 - Exterior Building Improvements		594		3,000		2,406			3,138		2,545
	0		17		17			0		0		654207 - Paving/Concrete/Striping		14		200		186			0		(14	)
	0		83		83			0		0		654500 - Elevator Expense		326		1,000		674			610		284
	218		250		32			330		112		654601 - HVAC Parts & Supplies		3,513		3,000		(513	)		2,354		(1,159	)
	0		21		21			495		495		654700 - Pool Expense		17		250		233			648		631


	AIMCO Statement of Operations — Detail
	000500 — Presidential House
	For the Period Ended December 2006 (12OSD1)
APPLICATION :AIMCOPROPERTY	Run Date: 4/27/2007 9:33 AM	USER ID: gcoalson


Current			Current			Current			Previous Yr			Previous Yr				Current			Current			Current			Previous			Previous Yr
Month			Month			Month			Month			Cur Month				YTD			YTD			YTD			Year			Current YTD
Actual			Budget			Variance			Actual			Variance				Actual			Budget			Variance			Actual			Variance
	0			10			10			0			0		654903 - Doors		0			120			120			37			37
	(7	)		(167	)		(160	)		84			91		655200 - R & M Rebate - MRO		(999	)		(2,000	)		(1,001	)		(1,767	)		(768	)
	(137	)		(42	)		95			(282	)		(145	)	655201 - R & M Rebate - Other		(913	)		(500	)		413			(304	)		609
	0			83			83			232			232		656005 - Light Bulbs		1,014			1,000			(14	)		1,120			106
	0			427			427			69			69		656300 - Misc.		726			5,124			4,398			185			(541	)
	835			100			(735	)		0			(835	)	659001 - Fire Protection Equip Maint		989			1,200			211			935			(54	)

	7,749			2,520			(5,229	)		4,131			(3,617	)	Total Repairs & Maintenance		38,619			30,244			(8,375	)		24,994			(13,625	)

	2,010			523			(1,487	)		910			(1,100	)	651700 - Contract Cleaning		9,971			6,375			(3,596	)		5,063			(4,908	)
	1,315			349			(966	)		300			(1,015	)	656002 - Contract Carpet Cleaning and		6,358			4,250			(2,108	)		4,055			(2,303	)
	1,271			1,134			(137	)		2,325			1,054		656003 - Contract Painting - Interior		16,692			13,812			(2,880	)		19,812			3,120
	0			87			87			0			0		656099 - Decorating - Contract Other		0			1,062			1,062			280			280
	303			0			(303	)		0			(303	)	656101 - Drapery/Miniblinds Repairs		610			0			(610	)		0			(610	)
	1,351			698			(653	)		728			(623	)	656102 - Painting Supplies		6,874			8,500			1,626			7,831			957

	6,249			2,791			(3,459	)		4,263			(1,986	)	Total Turnover Expense		40,504			33,999			(6,505	)		37,040			(3,465	)

	702			20			(682	)		0			(702	)	617104 - Radios/Pagers		1,193			240			(953	)		96			(1,098	)
	15			177			162			18			3		631100 - Office Supplies		2,931			2,122			(809	)		1,953			(978	)
	375			84			(291	)		375			0		631101 - Office Equipment		715			1,004			289			1,426			711
	0			155			155			165			165		631102 - Bank Charges		1,679			1,862			183			1,909			230
	85			71			(14	)		504			418		631104 - Applicant Screening		744			857			113			1,685			941
	70			98			28			90			20		631105 - Uniforms		1,102			1,179			76			920			(183	)
	68			46			(22	)		25			(43	)	631106 - Express Mail, Stamps		576			551			(25	)		507			(69	)
	366			340			(26	)		345			(21	)	631108 - Credit Card Service Fees		4,456			4,080			(376	)		4,275			(181	)
	1,245			408			(837	)		801			(444	)	631111 - Resident Eviction/Separation		12,822			4,896			(7,926	)		801			(12,021	)
	0			0			0			0			0		631112 - Office Supplies Rebates		(6	)		0			6			0			6
	0			15			15			0			0		632500 - Professional Fees		0			180			180			141			141
	0			0			0			0			0		632525 - H/R-Personnel Costs		340			0			(340	)		0			(340	)
	0			0			0			0			0		632918 - Answering Service		1,011			0			(1,011	)		0			(1,011	)
	5			0			(5	)		0			(5	)	633400 - Temp Agency Help		5			0			(5	)		0			(5	)
	301			100			(201	)		140			(161	)	634000 - Legal Fees		1,246			1,200			(46	)		6,451			5,204
	1,617			825			(792	)		955			(662	)	636000 - Telephone		10,304			9,900			(404	)		10,375			71
	0			21			21			0			0		639003 - Computer Lease		0			250			250			225			225
	225			200			(25	)		106			(119	)	639004 - Computer Maint & Supplies		2,556			2,400			(156	)		2,133			(423	)
	0			0			0			8			8		639006 - Parking Expense		16			0			(16	)		42			26
	481			170			(311	)		0			(481	)	639007 - Training & Travel		3,975			2,040			(1,935	)		1,632			(2,343	)
	147			117			(30	)		309			163		639099 - Miscellaneous Administrative		1,602			1,404			(198	)		1,776			173
	0			122			122			0			0		655100 - Residnt Pmt Platform		541			1,461			921			957			417
	0			70			70			128			128		656006 - Clubhouse Equip/Supplies		1,198			840			(358	)		794			(404	)

	5,703			3,039			(2,665	)		3,968			(1,735	)	Total Administrative Expenses		49,008			36,465			(12,543	)		38,096			(10,911	)

	1,049			83			(965	)		915			(133	)	621003 - Periodicals		6,879			1,000			(5,879	)		3,966			(2,912	)



	AIMCO Statement of Operations — Detail
	000500 — Presidential House
	For the Period Ended December 2006 (12OSD1)
APPLICATION :AIMCOPROPERTY	Run Date: 4/27/2007 9:33 AM	USER ID: gcoalson


Current			Current		Current			Previous Yr			Previous Yr				Current			Current			Current			Previous			Previous Yr
Month			Month		Month			Month			Cur Month				YTD			YTD			YTD			Year			Current YTD
Actual			Budget		Variance			Actual			Variance				Actual			Budget			Variance			Actual			Variance
	1,049			83		(965	)		915			(133	)	Periodicals		6,879			1,000			(5,879	)		3,966			(2,912	)

	1,243			523		(719	)		524			(719	)	611200 - Web Advertising		7,254			6,321			(934	)		6,439			(815	)

	1,243			523		(719	)		524			(719	)	Internet Leads		7,254			6,321			(934	)		6,439			(815	)

	862			0		(862	)		0			(862	)	621020 - National Web Advertising		3,332			0			(3,332	)		0			(3,332	)
	668			0		(668	)		0			(668	)	621030 - National Print/Periodical Advert		1,293			0			(1,293	)		0			(1,293	)

	1,530			0		(1,530	)		0			(1,530	)	National Media Advertising		4,625			0			(4,625	)		0			(4,625	)

	0			9		9			0			0		621001 - Newspaper Advertising		0			144			144			0			0

	0			9		9			0			0		Newspapers		0			144			144			0			0

	7,000			127		(6,873	)		1,500			(5,500	)	625001 - Referral Fees		16,500			1,528			(14,972	)		2,950			(13,550	)
	0			548		548			0			0		625008 - Resident Referral Concessions		8,500			6,578			(1,922	)		9,000			500
	550			210		(340	)		700			150		625010 - Resident Referral Amortization		1,900			(1,268	)		(3,168	)		(1,900	)		(3,800	)
	(5,350	)		0		5,350			(1,233	)		4,118		625012 - Referral Fee Amortization		(10,408	)		461			10,869			2,805			13,213

	2,200			886		(1,314	)		968			(1,233	)	Apartment Brokers		16,493			7,300			(9,192	)		12,855			(3,637	)

	103			82		(21	)		0			(103	)	621013 - Leasing Promotions		410			987			577			200			(210	)

	103			82		(21	)		0			(103	)	Active Outreach		410			987			577			200			(210	)

	47			45		(2	)		0			(47	)	611100 - Marketing Phone Services		191			540			349			393			202
	0			0		0			0			0		621007 - Brochures — New Leases		91			0			(91	)		0			(91	)
	0			77		77			0			0		621011 -Flags/Banners		0			923			923			26			26
	0			50		50			0			0		621012 - Move-in Gifts		75			600			525			0			(75	)
	0			125		125			0			0		621050 - Renewal/Resident Gift Expense		41			1,500			1,459			0			(41	)
	0			21		21			0			0		625000 - Signage		147			250			103			30			(117	)
	0			42		42			0			0		626001 - Furniture - Models		97			500			403			0			(97	)
	336			950		614			765			429		629002 - Phone Sales		8,638			11,400			2,762			8,795			157

	383			1,309		926			765			382		Point of Sale		9,278			15,713			6,435			9,244			(35	)

	0			55		55			0			0		621015 - Resident Relations		750			658			(92	)		360			(390	)
	0			27		27			0			0		621017 - Resident Collaterals		36			329			293			0			(36	)
	0			228		228			1,200			1,200		625007 - Resident Relations Concession		100			2,741			2,641			1,915			1,815
	500			55		(445	)		0			(500	)	625101 - Resident Functions		632			658			26			0			(632	)

	500			365		(135	)		1,200			700		Retention		1,517			4,385			2,868			2,274			757

	300			351		51			602			302		621099 - Advertising - Other		2,471			4,930			2,459			1,669			(802	)

	300			351		51			602			302		Other Marketing		2,471			4,930			2,459			1,669			(802	)


	7,308			3,609		(3,699	)		4,973			(2,335	)	Total Marketing Expense		48,927			40,779			(8,148	)		36,648			(12,280	)



	AIMCO Statement of Operations — Detail
	000500 — Presidential House
	For the Period Ended December 2006 (12OSD1)
APPLICATION :AIMCOPROPERTY	Run Date: 4/27/2007 9:33 AM	USER ID: gcoalson


Current			Current			Current			Previous Yr			Previous Yr				Current			Current			Current			Previous			Previous Yr
Month			Month			Month			Month			Cur Month				YTD			YTD			YTD			Year			Current YTD
Actual			Budget			Variance			Actual			Variance				Actual			Budget			Variance			Actual			Variance
	3,700			1,899			(1,801	)		2,215			(1,485	)	621000 - Leasing Payroll		38,842			22,584			(16,259	)		44,987			6,144
	0			0			0			0			0		627200 - Miscellaneous Incentives		1,700			0			(1,700	)		0			(1,700	)
	0			1,008			1,008			1,620			1,620		627300 - Leasing Commissions		5,020			11,963			6,943			12,220			7,200
	0			0			0			(1,196	)		(1,196	)	627301 - Commission Amortization		(1,174	)		0			1,174			2,493			3,667
	0			0			0			1,500			1,500		627400 - Leasing Renewal Incentives		13,925			0			(13,925	)		11,380			(2,545	)
	0			0			0			0			0		627700 - Leasing Comm — Amortizable		1,100			0			(1,100	)		0			(1,100	)
	1,847			0			(1,847	)		0			(1,847	)	627701 - Amortization on Leasing Comm		(163	)		0			163			0			163
	0			0			0			0			0		627800 - Renewal Incent — Amortizable		6,100			0			(6,100	)		0			(6,100	)
	0			0			0			0			0		627500 - Coast-to-Coast Incentive		200			0			(200	)		0			(200	)
	1,093			2,652			1,559			3,544			2,450		631000 - Salaries — Administrative		44,069			31,512			(12,557	)		38,408			(5,661	)
	2,520			0			(2,520	)		0			(2,520	)	633000 - Salaries — Manager		2,520			0			(2,520	)		7,198			4,678
	174			1,768			1,594			1,858			1,684		633100 - Employee Apartments		6,542			21,216			14,674			21,470			14,928
	8,204			7,920			(284	)		4,287			(3,917	)	654000 - Salaries — Maintenance		95,381			94,221			(1,160	)		86,929			(8,453	)
	27			0			(27	)		0			(27	)	659500 - Outsourced Services		617			0			(617	)		0			(617	)
	2,702			219			(2,483	)		(40	)		(2,742	)	659800 - Payroll Adjustment		3,067			0			(3,067	)		(10,562	)		(13,629	)
	(25	)		(804	)		(779	)		(206	)		(181	)	659900 - Repairs Payroll Capitalized		(8,456	)		(9,571	)		(1,115	)		(11,190	)		(2,734	)
	1,498			1,079			(419	)		1,211			(287	)	671 100 - Payroll Taxes		18,697			15,177			(3,521	)		18,393			(304	)
	1,056			828			(228	)		1,185			129		672200 - Workers Compensation		13,221			9,843			(3,379	)		14,833			1,612
	1,997			2,426			429			2,006			10		672300 - Health Ins. & Other Benefits		21,722			29,091			7,369			25,187			3,466
	0			619			619			0			0		831001 - Ranking Bonus		14,843			7,351			(7,492	)		4,585			(10,258	)

	24,793			19,615			(5,178	)		17,985			(6,808	)	Total Payroll Expense		277,774			233,387			(44,388	)		266,332			(11,442	)

	0			0			0			0			0		659700 - Construction Period Operating		(195	)		0			195			(556	)		(361	)

	0			0			0			0			0		Total Construction Period Operating		(195	)		0			195			(556	)		(361	)


	77,510			44,599			(32,911	)		57,915			(19,595	)	Total Controllable Operating Expe		656,028			544,044			(111,984	)		571,297			(84,731	)


	84,378			126,235			(41,857	)		109,010			(24,632	)	Controllable NOI		1,430,333			1,472,572			(42,238	)		1,347,327			83,006


NON-CONTROLLABLE OPERATING EXPENSES

TAXES & INSURANCE

	0			442			442			0			0		639002 - Ad Valorem Tax Service		7,635			5,298			(2,337	)		5,298			(2,337	)
	19,087			22,158			3,071			15,436			(3,651	)	671001 - Real Estate Taxes		229,045			265,900			36,855			185,230			(43,815	)
	0			313			313			0			0		671002 - Personal Property Tax		2,571			3,756			1,184			3,577			1,006
	0			0			0			0			0		671003 - Real Estate Tax — Prior Year		0			0			0			0			0
	0			0			0			0			0		671 005 - Tax Refund — Prior Years		666			0			(666	)		(14,003	)		(14,669	)
	310			199			(111	)		516			206		671900 - Business Licenses and Permits		10,419			2,383			(8,037	)		2,313			(8,106	)



	AIMCO Statement of Operations — Detail
	000500 — Presidential House
	For the Period Ended December 2006 (12OSD1)
APPLICATION :AIMCOPROPERTY	Run Date: 4/27/2007 9:33 AM	USER ID: gcoalson


Current			Current		Current			Previous Yr		Previous Yr				Current			Current		Current			Previous			Previous Yr
Month			Month		Month			Month		Cur Month				YTD			YTD		YTD			Year			Current YTD
Actual			Budget		Variance			Actual		Variance				Actual			Budget		Variance			Actual			Variance
	0			100		100			4		4		671902 - Sales and Use Tax.		546			1,200		654			54			(493	)
	0			0		0			0		0		832038 - Construction Period Taxes		(744	)		0		744			(878	)		(134	)

	19,397			23,211		3,814			15,956		(3,441	)	Total Taxes		250,139			278,536		28,398			181,590			(68,548	)

	11,890			5,709		(6,181	)		6,002		(5,888	)	672000 - Hazard Insurance		130,869			68,505		(62,365	)		75,635			(55,235	)
	120			108		(12	)		108		(12	)	672100 - Fidelity Bond Insurance		1,340			1,291		(49	)		823			(517	)
	0			980		980			111		111		672900 - Other Insurance		110			11,757		11,647			(676	)		(786	)

	12,010			6,796		(5,214	)		6,221		(5,789	)	Total Insurance		132,319			81,553		(50,767	)		75,782			(56,537	)


	31,407			30,007		(1,399	)		22,177		(9,230	)	Total Taxes & Insurance		382,458			360,089		(22,369	)		257,372			(125,086	)


	52,971			96,228		(43,256	)		86,834		(33,862	)	Reportable NOI		1,047,876			1,112,483		(64,607	)		1,089,955			(42,079	)


OTHER NON-CONTROLLABLE OPERATING EXPENSES

	7,913			8,421		508			9,410		1,497		632000 - Management Fees		101,901			99,379		(2,522	)		95,595			(6,306	)

	7,913			8,421		508			9,410		1,497		Total Management & Accounting F		101,901			99,379		(2,522	)		95,595			(6,306	)

	0			0		0			0		0		615700 - Environmental Expenses		0			0		0			5			5

	0			0		0			0		0		Total Property Upgrades		0			0		0			5			5


	7,913			8,421		508			9,410		1,497		Management, Acctg & Oth Fees		101,901			99,379		(2,522	)		95,599			(6,302	)


	45,059			87,807		(42,748	)		77,424		(32,365	)	Property Net Operating Income		945,975			1,013,104		(67,129	)		994,356			(48,381	)


	0			0		0			157,091		157,091		654215 - Insurance Damage Expense		(103,924	)		0		103,924			219,222			323,146
	0			0		0			0		0		915000 - Casualty Basis Write-Off		(250,000	)		0		250,000			0			250,000

	0			0		0			157,091		157,091		Total Casualty G/L		(353,924	)		0		353,924			219,222			573,146

	6,262			0		(6,262	)		4,222		(2,040	)	662000 - Deprec. - Buildings		56,244			0		(56,244	)		58,826			2,582
	11,268			1,942		(9,326	)		10,652		(616	)	666000 - Deprec. - Furnishings		132,896			12,274		(120,622	)		102,441			(30,455	)

	17,529			1,942		(15,587	)		14,874		(2,655	)	Total Depreciation Expense		189,140			12,274		(176,866	)		161,266			(27,873	)

	0			12		12			0		0		834000 - Legal		302			146		(156	)		81			(221	)
	(156	)		0		156			0		156		834500 - Prof Exp		348			0		(348	)		0			(348	)

	(156	)		12		168			0		156		Total Partnership Legal		650			146		(504	)		81			(569	)

	0			0		0			0		0		831600 - Txs Fees & Lic		119			0		(119	)		0			(119	)
	0			0		0			0		0		839000 - Partnership Misc Exp		800			0		(800	)		0			(800	)
	0			0		0			0		0		931 000 -Office Payroll		0			7,212		7,212			7,212			7,212



	AIMCO Statement of Operations — Detail
	000500 — Presidential House
	For the Period Ended December 2006 (12OSD1)
APPLICATION :AIMCOPROPERTY	Run Date: 4/27/2007 9:33 AM	USER ID: gcoalson


Current			Current		Current			Previous Yr			Previous Yr				Current			Current		Current			Previous			Previous Yr
Month			Month		Month			Month			Cur Month				YTD			YTD		YTD			Year			Current YTD
Actual			Budget		Variance			Actual			Variance				Actual			Budget		Variance			Actual			Variance
	0			0		0			0			0		Total Partnership Other Expense		919			7,212		6,292			7,212			6,292


	(156	)		12		168			0			156		Total Partnership Expense		1,570			7,358		5,788			7,293			5,723

	48,529			0		(48,529	)		0			(48,529	)	671205 - Non-Capitalized Redevelopmer		48,529			0		(48,529	)		0			(48,529	)
	0			0		0			0			0		793100 -Grant Expense		312			0		(312	)		0			(312	)

	48,529			0		(48,529	)		0			(48,529	)	Total Other Non-Controllable Expe		48,841			0		(48,841	)		0			(48,841	)


	105,221			40,382		(64,839	)		203,552			98,330		Total Noncontrollable Operating E)		369,985			479,099		109,115			740,752			370,768


	182,732			84,981		(97,750	)		261,467			78,735		Total Operating Expenses		1,026,013			1,023,143		(2,870	)		1,312,049			286,036


	(20,843	)		85,853		(106,696	)		(94,541	)		73,698		Operating Income		1,060,349			993,472		66,876			606,575			453,774


NON-OPERATING EXPENSES

	701			58		(643	)		702			0		916003- Amort DLC - 1st		8,418			702		(7,716	)		8,418			0
	192			16		(176	)		192			0		916023 - Amort DLC — Other		2,304			192		(2,112	)		2,304			0

	893			74		(819	)		893			0		Total Property Amort Def Loan Exp		10,722			894		(9,828	)		10,722			0

	0			0		0			0			0		681114 -Interest on Corp AR		842			0		(842	)		0			(842	)
	23,182			23,182		0			24,085			903		682001 - Interest Expense Secured Fixec		282,315			283,225		910			292,840			10,525
	5,619			5,619		0			5,886			268		682002 - Interest Expense Secured Fixec		68,644			68,915		271			71,789			3,145

	28,801			28,801		0			29,972			1,171		Total Property Mortgage Expense		351,801			352,140		339			364,629			12,828

	0			0		0			0			0		832037 - Construction Period Interest		(11,072	)		0		11,072			(2,204	)		8,868

	0			0		0			0			0		Total CAP Interest		(11,072	)		0		11,072			(2,204	)		8,868

	0			0		0			0			0		682099 - Misc Fin Exp		0			0		0			248			248

	0			0		0			0			0		Total Financial Expense		0			0		0			248			248


	29,694			28,875		(819	)		30,865			1,171		Total Interest Expense		351,451			353,034		1,583			373,395			21,945

	(238	)		0		238			(232	)		7		545000 - IN Cone Interest Income		(2,967	)		0		2,967			(3,044	)		(76	)

	(238	)		0		238			(232	)		7		Total Interest Income		(2,967	)		0		2,967			(3,044	)		(76	)


	29,456			28,875		(581	)		30,634			1,178		Total Non-Operating Expenses		348,484			353,034		4,550			370,352			21,868


	(50,299	)		56,978		(107,277	)		(125,175	)		74,875		Net Income(Loss)		711,865			640,439		71,426			236,223			475,642



	AIMCO Statement of Operations — Detail
	000500 — Presidential House
	For the Period Ended December 2005 (12OSD2)
APPLICATION :AIMCOPROPERTY	Run Date: 4/27/2007 9:19 AM	USER ID: gcoalson


Current			Current			Current			Previous Yr			Previous Yr				Current			Current			Current			Previous			Previous Yr
Month			Month			Month			Month			Cur Month				YTD			YTD			YTD			Year			Current YTD
Actual			Budget			Variance			Actual			Variance				Actual			Budget			Variance			Actual			Variance
															INCOME

	186,437			157,249			29,188			169,707			16,730		500000 - Market Rent		2,224,864			1,862,045			362,819			1,911,954			312,910
	(8,258	)		0			(8,258	)		(10,354	)		2,096		500001 - Leases Under/Over Schedule		(186,576	)		0			(186,576	)		(49,311	)		(137,265	)
	0			0			0			0			0		500500 - Rent — Right Price Adjustment		0			0			0			(2,555	)		2,555
	(829	)		0			(829	)		(563	)		(266	)	500501 - Renewal Price Adjustment		(4,618	)		0			(4,618	)		(30,981	)		26,362
	12			113			(101	)		239			(227	)	512300 - Commercial Rent		1,453			1,338			115			1,515			(62	)

	177,362			157,362			19,999			159,029			18,333		Non-subsidized Rental Income		2,035,123			1,863,383			171,740			1,830,623			204,500


	177,362			157,362			19,999			159,029			18,333		Total Gross Potential Rent		2,035,123			1,863,383			171,740			1,830,623			204,500
	0			0			0			54			(54	)	519100 - Concessions Reimbursement		0			0			0			54			(54	)
	(264	)		0			(264	)		(617	)		353		625002 - Concessions/Special Promotior		(3,494	)		0			(3,494	)		(10,559	)		7,064
	(11,051	)		0			(11,051	)		(3,631	)		(7,420	)	625005 - Renewal Concession		(98,387	)		0			(98,387	)		(20,135	)		(78,252	)
	(270	)		0			(270	)		0			(270	)	625006 - Discount — Residents Monthly		(2,460	)		0			(2,460	)		0			(2,460	)
	385			0			385			(173	)		558		625009 - Concession Amortization		1,522			0			1,522			(161	)		1,682

	(11,200	)		0			(11,200	)		(4,367	)		(6,833	)	Total Concessions		(102,820	)		0			(102,820	)		(30,801	)		(72,019	)

	(2,207	)		(6,364	)		4,157			(3,107	)		900		522000 - Vacancy Loss		(47,814	)		(71,207	)		23,393			(107,151	)		59,336

	(2,207	)		(6,364	)		4,157			(3,107	)		900		Total Vacancy Loss		(47,814	)		(71,207	)		23,393			(107,151	)		59,336


	(13,407	)		(6,364	)		(7,043	)		(7,474	)		(5,932	)	Total Rental Loss		(150,634	)		(71,207	)		(79,427	)		(137,951	)		(12,683	)


	163,955			150,999			12,956			151,554			12,401		Net Rental Income		1,884,489			1,792,176			92,314			1,692,672			191,817

	0			17			(17	)		0			0		590508 - Resident Util Pymts: Electricity		163			239			(76	)		222			(59	)

	0			17			(17	)		0			0		Total Utility Payments from Reside		163			239			(76	)		222			(59	)

	2,746			1,200			1,546			1,335			1,411		591000 - Laundry Income		16,394			14,400			1,994			12,348			4,046
	2,677			600			2,077			0			2,677		591007 -AS -Cable TV		9,399			7,200			2,199			7,444			1,954
	412			120			292			471			(59	)	591008 - AS — Local Telephone		1,859			1,440			419			1,881			(22	)
	18			0			18			(123	)		140		591 01 1 - Soft Drink Vending		123			0			123			(121	)		245

	5,852			1,920			3,932			1,683			4,169		Total Ancillary Services Income		27,775			23,040			4,735			21,552			6,223

	7			(126	)		133			300			(293	)	500005 - Month to Month Fee		2,107			2,253			(146	)		2,600			(493	)
	0			0			0			0			0		500006 - Short Term Lease Fee		0			925			(925	)		903			(903	)
	1,220			1,000			220			1,780			(560	)	592001 - Late Charges		20,909			12,000			8,909			20,341			569
	120			125			(5	)		120			0		592002 - NSF Charges		2,129			1,500			629			1,600			529
	0			0			0			0			0		592006 - Keys, Locks, Lock Changes		50			0			50			0			50
	0			25			(25	)		0			0		592009 - Miscellaneous Resident Charge		373			300			73			75			298


	AIMCO Statement of Operations — Detail
	000500 — Presidential House
	For the Period Ended December 2005 (12OSD2)
APPLICATION :AIMCOPROPERTY	Run Date: 4/27/2007 9:19 AM	USER ID: gcoalson


Current			Current			Current			Previous Yr			Previous Yr				Current			Current			Current			Previous			Previous Yr
Month			Month			Month			Month			Cur Month				YTD			YTD			YTD			Year			Current YTD
Actual			Budget			Variance			Actual			Variance				Actual			Budget			Variance			Actual			Variance
	800			328			472			1,200			(400	)	592010 - Non-refundable Admin Fees		6,400			8,318			(1,918	)		7,400			(1,000	)
	230			109			121			1,215			(985	)	593000 - Cleaning & Damage Fees		1,973			2,788			(815	)		6,320			(4,347	)
	0			0			0			741			(741	)	593002 - Pet Damage Charges		563			0			563			741			(178	)
	300			75			225			227			73		599002 - Legal Fees		1,987			900			1,087			846			1,141
	0			14			(14	)		0			0		599003 - Non-refundable Pet Fees		0			347			(347	)		300			(300	)
	2,133			750			1,383			2,754			(621	)	599004 - Lease Cancellation Fees		12,611			9,000			3,611			14,514			(1,903	)
	390			136			254			455			(65	)	599005 - Application Fees		3,900			3,444			456			3,310			590
	0			50			(50	)		32			(32	)	599013 - Monthly Pet Rent		186			600			(414	)		409			(223	)
	(620	)		0			(620	)		0			(620	)	599014 - Contra Lease Cancellation Fees		(6,463	)		0			(6,463	)		0			(6,463	)
	0			50			(50	)		441			(441	)	599099 - Miscellaneous Income		0			600			(600	)		1,072			(1,072	)
	0			0			0			0			0		599200 - Fee Adjustments		(25	)		0			(25	)		0			(25	)

	4,580			2,535			2,046			9,264			(4,684	)	Total Miscellaneous Income		46,700			42,975			3,726			60,429			(13,729	)


	10,432			4,472			5,961			10,947			(515	)	Total Other Income		74,639			66,254			8,385			82,203			(7,565	)

	(3,053	)		(2,363	)		(690	)		(6,311	)		3,258		637000 - Bad Debt Expense		(28,717	)		(28,257	)		(460	)		(40,819	)		12,102
	0			177			(177	)		0			0		637001 - Bad Debt Collections		0			2,119			(2,119	)		0			0
	0			0			0			0			0		637003 - Bad Debt Collection: Profession		1,208			0			1,208			0			1,208
	(4,408	)		(95	)		(4,314	)		(2,009	)		(2,399	)	637005 - Bank Reconciliation Adjustment		(12,995	)		(1,130	)		(11,865	)		(2,567	)		(10,428	)

	(7,462	)		(2,281	)		(5,181	)		(8,321	)		859		Total Bad Debt Expense		(40,504	)		(27,268	)		(13,236	)		(43,385	)		2,881


	166,926			153,190			13,736			154,181			12,745		Effective Gross Income		1,918,624			1,831,162			87,462			1,731,490			187,134


OPERATING EXPENSES

	4,293			55			(4,238	)		0			(4,293	)	615600 - Fire Protection		7,225			658			(6,568	)		645			(6,580	)

	4,293			55			(4,238	)		0			(4,293	)	Common Area Expense		7,225			658			(6,568	)		645			(6,580	)

	791			750			(41	)		0			(791	)	645001 - Electricity — Vacant		6,121			9,000			2,879			9,019			2,898
	4,488			2,000			(2,488	)		1,681			(2,807	)	645003 - Electricity — List Bills		26,282			24,000			(2,282	)		22,346			(3,936	)
	0			0			0			0			0		645004 - Utility		0			0			0			(373	)		(373	)
	1,331			1,400			69			996			(335	)	645100 - Water		13,240			16,800			3,560			16,165			2,925
	3,050			2,000			(1,050	)		2,126			(924	)	645203 - Gas — List Bills		30,489			24,000			(6,489	)		20,775			(9,714	)
	4,209			2,200			(2,009	)		1,492			(2,717	)	645300 - Sewer		39,044			26,400			(12,644	)		25,180			(13,865	)
	68			0			(68	)		0			(68	)	647000 - Fees, Penalties — Utilities		139			0			(139	)		0			(139	)
	30			200			171			0			(30	)	649000 - Misc Utility Charges		86			2,400			2,314			2,429			2,343

	13,965			8,550			(5,415	)		6,294			(7,671	)	Total Utilities Expense		115,400			102,600			(12,800	)		95,541			(19,860	)

	100			150			50			0			(100	)	631701 - Contract Common Area Cleaning		413			1,800			1,387			2,020			1,607
	254			260			6			254			0		651900 - Contract Exterminating		3,381			3,120			(261	)		3,116			(264	)


	AIMCO Statement of Operations — Detail
	000500 — Presidential House
	For the Period Ended December 2005 (12OSD2)
APPLICATION :AIMCOPROPERTY	Run Date: 4/27/2007 9:19 AM	USER ID: gcoalson


Current			Current			Current			Previous Yr		Previous Yr				Current			Current			Current			Previous			Previous Yr
Month			Month			Month			Month		Cur Month				YTD			YTD			YTD			Year			Current YTD
Actual			Budget			Variance			Actual		Variance				Actual			Budget			Variance			Actual			Variance
	1,605			1,600			(5	)		1,962		357		652500 - Contract Trash Removal		22,988			19,200			(3,788	)		20,784			(2,203	)
	528			0			(528	)		0		(528	)	653002 - Contract Courtesy Patrol		3,237			0			(3,237	)		272			(2,964	)
	0			0			0			119		119		653004 - Contract Alarm System		251			0			(251	)		711			459
	0			20			20			0		0		653005 - Alarm Repair		0			236			236			119			119
	0			1,100			1,100			0		0		653700 - Contract Yards and Grounds		2,812			13,200			10,388			8,517			5,705
	0			500			500			0		0		654200 - Contract Repairs		1,992			6,000			4,008			8,981			6,989
	0			0			0			0		0		654202 - Maintenance Contract		0			0			0			1,562			1,562
	0			100			100			0		0		654302 - Electrical — Contract		0			1,200			1,200			1,236			1,236
	150			50			(100	)		0		(150	)	654402 - Plumbing Contract		956			600			(356	)		521			(435	)
	657			563			(94	)		542		(115	)	654501 - Contract Elevator		6,752			6,661			(91	)		6,504			(248	)
	0			0			0			0		0		654602 - Contract HVAC		0			0			0			180			180
	1,044			275			(769	)		255		(789	)	654702 - Pool Contract		3,269			3,300			31			3,145			(124	)
	0			0			0			0		0		669900 - Other Contracts		67			382			314			375			307

	4,337			4,618			280			3,132		(1,205	)	Total Contract Service		46,117			55,699			9,582			58,044			11,927

	0			66			66			0		0		612800 - Irrigation Maint		211			791			580			776			565
	0			50			50			0		0		617600 - Window & Glass Repair		86			600			514			649			563
	89			150			61			0		(89	)	651500 - Cleaning Supplies		367			1,800			1,433			1,357			990
	20			2			(18	)		0		(20	)	652300 - Gas/Oil/Mileage		111			27			(84	)		26			(85	)
	0			155			155			0		0		652501 - Dumpster Expense		176			1,860			1,684			980			804
	0			25			25			0		0		653600 - Landscaping Supplies		84			300			216			110			26
	81			0			(81	)		0		(81	)	654003 - Handyman Materials		117			0			(117	)		0			(117	)
	10			38			28			0		(10	)	654004 - Handyman — Other Materials		494			459			(35	)		0			(494	)
	248			284			36			0		(248	)	654100 - Repairs/Maint. — Materials		2,383			948			(1,435	)		329			(2,054	)
	586			300			(286	)		69		(518	)	654101 - Electrical Supplies		3,198			3,600			402			3,380			182
	1,286			300			(986	)		134		(1,152	)	654102 - Plumbing Supplies		4,807			3,600			(1,207	)		2,911			(1,896	)
	133			100			(33	)		21		(112	)	654103 - Appliance Parts		903			1,200			297			1,342			440
	0			5			5			0		0		654104 - Equipment Rental/Repair		6			17			11			0			(6	)
	325			200			(125	)		0		(325	)	654105 - Plumbing Fixtures/Repairs		2,210			2,400			190			1,031			(1,179	)
	0			296			296			0		0		654109 - Window Replacement		110			1,927			1,817			1,331			1,220
	147			75			(72	)		0		(147	)	654120 - Keys and Locks		626			900			274			880			254
	237			350			113			0		(237	)	654199 - Other Maintenance Materials		2,149			4,200			2,051			3,516			1,367
	41			50			9			0		(41	)	654206 - Exterior Building Improvements		3,138			600			(2,538	)		713			(2,425	)
	0			0			0			140		140		654207 - Paving/Concrete/Striping		0			0			0			385			385
	0			10			10			0		0		654232 - Limited Access Gate Repairs		0			120			120			55			55
	0			44			44			0		0		654500 - Elevator Expense		610			530			(80	)		520			(90	)
	330			250			(80	)		35		(295	)	654601 - HVAC Parts & Supplies		2,354			3,000			646			1,969			(385	)
	495			50			(445	)		0		(495	)	654700 - Pool Expense		648			600			(48	)		349			(298	)
	0			36			36			0		0		654903 - Doors		37			434			397			311			273
	84			(200	)		(284	)		562		477		655200 - R & M Rebate — MRO		(1,767	)		(2,400	)		(633	)		(2,107	)		(340	)
	(282	)		(75	)		207			35		317		655201 - R & M Rebate — Other		(304	)		(900	)		(596	)		(596	)		(292	)
	232			50			(182	)		0		(232	)	656005 - Light Bulbs		1,120			600			(520	)		520			(600	)


	AIMCO Statement of Operations — Detail
	000500 — Presidential House
	For the Period Ended December 2005 (12OSD2)
APPLICATION :AIMCOPROPERTY	Run Date: 4/27/2007 9:19 AM	USER ID: gcoalson


Current		Current		Current			Previous Yr		Previous Yr				Current		Current		Current			Previous		Previous Yr
Month		Month		Month			Month		Cur Month				YTD		YTD		YTD			Year		Current YTD
Actual		Budget		Variance			Actual		Variance				Actual		Budget		Variance			Actual		Variance
	69		31		(38	)		0		(69	)	656300 - Misc.		185		92		(94	)		25		(161	)
	0		0		0			0		0		659001 - Fire Protection Equip Maint		935		0		(935	)		0		(935	)

	4,131		2,643		(1,488	)		995		(3,136	)	Total Repairs & Maintenance		24,994		27,305		2,311			20,761		(4,233	)

	910		600		(310	)		680		(230	)	651700 - Contract Cleaning		5,063		7,200		2,137			5,710		647
	300		299		(1	)		190		(110	)	656002 - Contract Carpet Cleaning and D		4,055		7,593		3,538			6,747		2,692
	2,325		764		(1,561	)		0		(2,325	)	656003 - Contract Painting — Interior		19,812		19,407		(405	)		9,318		(10,493	)
	0		47		47			0		0		656099 - Decorating — Contract Other		280		1,202		922			1,040		760
	0		29		29			0		0		656101 - Drapery/Miniblinds Repairs		0		749		749			61		61
	728		303		(425	)		17		(711	)	656102 - Painting Supplies		7,831		7,695		(135	)		5,830		(2,000	)

	4,263		2,043		(2,220	)		887		(3,376	)	Total Turnover Expense		37,040		43,845		6,805			28,706		(8,334	)

	0		0		0			19		19		617104 - Radios/Pagers		96		0		(96	)		663		567
	0		0		0			0		0		621008 - Newspaper Adv. — Personnel		0		85		85			84		84
	0		0		0			0		0		629001 - Dues and Subscriptions		0		123		123			0		0
	18		300		282			14		(5	)	631100 - Office Supplies		1,953		3,600		1,647			2,708		755
	375		150		(225	)		392		17		631101 - Office Equipment		1,426		1,800		374			1,636		210
	165		100		(65	)		334		170		631102 - Bank Charges		1,909		1,200		(709	)		1,592		(317	)
	504		350		(154	)		0		(504	)	631104 - Applicant Screening		1,685		4,200		2,515			3,628		1,943
	90		75		(15	)		67		(22	)	631105 - Uniforms		920		900		(20	)		585		(335	)
	25		50		25			0		(25	)	631106 - Express Mail, Stamps		507		600		93			455		(52	)
	345		300		(45	)		485		140		631108 - Credit Card Service Fees		4,275		3,600		(675	)		4,123		(152	)
	801		0		(801	)		0		(801	)	631111 - Resident Eviction/Separation		801		0		(801	)		0		(801	)
	0		100		100			0		0		632500 - Professional Fees		141		1,200		1,059			2,794		2,653
	0		0		0			0		0		633400 - Temp Agency Help		0		0		0			5,596		5,596
	140		200		60			313		173		634000 - Legal Fees		6,451		2,400		(4,051	)		2,923		(3,528	)
	955		950		(5	)		856		(99	)	636000 - Telephone		10,375		11,400		1,025			8,758		(1,617	)
	0		5		5			0		0		639003 - Computer Lease		225		59		(166	)		0		(225	)
	106		200		94			95		(10	)	639004 - Computer Maint & Supplies		2,133		2,400		267			2,386		253
	8		0		(8	)		0		(8	)	639006 - Parking Expense		42		0		(42	)		0		(42	)
	0		150		150			0		0		639007 - Training & Travel		1,632		1,800		168			1,589		(43	)
	309		250		(59	)		20		(289	)	639099 - Miscellaneous Administrative		1,776		3,000		1,224			3,091		1,316
	0		100		100			0		0		655100 - Residnt Pmt Platform		957		1,200		243			0		(957	)
	128		139		11			0		(128	)	656006 - Clubhouse Equip/Supplies		794		1,668		874			1,467		673

	3,968		3,419		(549	)		2,596		(1,372	)	Total Administrative Expenses		38,096		41,236		3,139			44,077		5,981

	915		676		(239	)		676		(240	)	621003 - Periodicals		3,966		8,112		4,146			8,538		4,572

	915		676		(239	)		676		(240	)	Periodicals		3,966		8,112		4,146			8,538		4,572

	524		662		138			662		138		611200 - Web Advertising		6,439		7,944		1,505			5,569		(870	)

	524		662		138			662		138		Internet Leads		6,439		7,944		1,505			5,569		(870	)


	AIMCO Statement of Operations — Detail
	000500 — Presidential House
	For the Period Ended December 2005 (12OSD2)
APPLICATION :AIMCOPROPERTY	Run Date: 4/27/2007 9:19 AM	USER ID: gcoalson


Current			Current			Current			Previous Yr		Previous Yr				Current			Current			Current			Previous			Previous Yr
Month			Month			Month			Month		Cur Month				YTD			YTD			YTD			Year			Current YTD
Actual			Budget			Variance			Actual		Variance				Actual			Budget			Variance			Actual			Variance
	0			0			0			0		0		621001 - Newspaper Advertising		0			0			0			767			767

	0			0			0			0		0		Newspapers		0			0			0			767			767

	1,500			1,500			0			300		(1,200	)	625001 - Referral Fees		2,950			18,000			15,050			14,050			11,100
	0			200			200			0		0		625008 - Resident Referral Concessions		9,000			2,400			(6,600	)		3,000			(6,000	)
	700			(280	)		(980	)		300		(400	)	625010 - Resident Referral Amortization		(1,900	)		(3,361	)		(1,461	)		(1,800	)		100
	(1,233	)		0			1,233			1,020		2,253		625012 - Referral Fee Amortization		2,805			(2,003	)		(4,808	)		(4,748	)		(7,553	)

	968			1,420			452			1,620		653		Apartment Brokers		12,855			15,037			2,182			10,502			(2,353	)

	0			0			0			0		0		621004 - Radio & TV		0			5			5			0			0
	0			0			0			0		0		621013 - Leasing Promotions		200			0			(200	)		1,651			1,451

	0			0			0			0		0		Active Outreach		200			5			(195	)		1,651			1,451

	0			200			200			177		177		611100 - Marketing Phone Services		393			2,400			2,007			1,593			1,200
	0			100			100			0		0		621007 - Brochures — New Leases		0			1,200			1,200			1,392			1,392
	0			50			50			0		0		621011 - Flags/Banners		26			600			574			873			847
	0			50			50			0		0		621012 - Move-in Gifts		0			600			600			74			74
	0			75			75			0		0		625000 - Signage		30			900			870			0			(30	)
	0			0			0			0		0		626001 - Furniture — Models		0			0			0			783			783
	765			515			(249	)		252		(513	)	629002 - Phone Sales		8,795			4,192			(4,603	)		1,382			(7,413	)

	765			990			226			429		(336	)	Point of Sale		9,244			9,892			649			6,097			(3,146	)

	0			200			200			0		0		621015 - Resident Relations		360			2,400			2,040			2,642			2,282
	1,200			50			(1,150	)		0		(1,200	)	625007 - Resident Relations Concession		1,915			600			(1,315	)		400			(1,515	)
	0			100			100			0		0		625101 - Resident Functions		0			400			400			40			40

	1,200			350			(850	)		0		(1,200	)	Retention		2,274			3,400			1,126			3,081			807

	602			0			(602	)		0		(602	)	621099 - Advertising — Other		1,669			0			(1,669	)		10			(1,659	)

	602			0			(602	)		0		(602	)	Other Marketing		1,669			0			(1,669	)		10			(1,659	)


	4,973			4,099			(875	)		3,387		(1,587	)	Total Marketing Expense		36,648			44,390			7,743			36,216			(432	)

	2,215			4,658			2,443			4,175		1,960		621000 - Leasing Payroll		44,987			55,900			10,913			13,741			(31,246	)
	1,620			1,194			(426	)		0		(1,620	)	627300 - Leasing Commissions		12,220			14,119			1,899			9,923			(2,298	)
	(1,196	)		0			1,196			1,677		2,873		627301 - Commission Amortization		2,493			0			(2,493	)		(2,938	)		(5,431	)
	1,500			1,200			(300	)		0		(1,500	)	627400 - Leasing Renewal Incentives		11,380			14,400			3,020			11,860			481
	0			0			0			0		0		627500 - Coast-to-Coast Incentive		0			102			102			100			100
	0			0			0			0		0		627900 - Mentor/Referral/$1300 Club Bo		0			33			33			33			33
	3,544			0			(3,544	)		0		(3,544	)	631000 - Salaries — Administrative		38,408			0			(38,408	)		24,040			(14,368	)
	0			3,500			3,500			2,461		2,461		633000 - Salaries — Manager		7,198			42,000			34,802			38,718			31,520
	1,858			1,858			0			1,858		0		633100 - Employee Apartments		21,470			22,296			826			13,827			(7,643	)
	0			0			0			0		0		653500 - Grnd Pr Payroll		0			0			0			3,420			3,420


	AIMCO Statement of Operations — Detail
	000500 — Presidential House
	For the Period Ended December 2005 (12OSD2)
APPLICATION :AIMCOPROPERTY	Run Date: 4/27/2007 9:19 AM	USER ID: gcoalson


Current			Current			Current			Previous Yr			Previous Yr				Current			Current			Current			Previous			Previous Yr
Month			Month			Month			Month			Cur Month				YTD			YTD			YTD			Year			Current YTD
Actual			Budget			Variance			Actual			Variance				Actual			Budget			Variance			Actual			Variance
	4,287			7,174			2,887			8,331			4,044		654000 - Salaries — Maintenance		86,929			86,086			(843	)		85,369			(1,560	)
	(40	)		0			40			8,776			8,816		659800 - Payroll Adjustment		(10,562	)		0			10,562			7,238			17,800
	(206	)		(1,284	)		(1,077	)		(644	)		(437	)	659900 - Repairs Payroll Capitalized		(11,190	)		(15,503	)		(4,313	)		(11,882	)		(692	)
	1,211			1,356			145			1,285			74		671100 - Payroll Taxes		18,393			18,371			(22	)		19,253			860
	0			(1,240	)		(1,240	)		0			0		671109 - Laundry Payroll Taxes		0			(14,984	)		(14,984	)		0			0
	1,185			932			(253	)		814			(371	)	672200 - Workers Compensation		14,833			11,186			(3,647	)		9,130			(5,703	)
	2,006			1,338			(668	)		1,465			(541	)	672300 - Health Ins. & Other Benefits		25,187			16,061			(9,126	)		18,920			(6,267	)
	0			0			0			438			438		831001 - Ranking Bonus		4,585			0			(4,585	)		2,524			(2,061	)

	17,985			20,687			2,703			30,635			12,651		Total Payroll Expense		266,332			250,068			(16,264	)		243,277			(23,055	)

	0			0			0			0			0		659700 - Construction Period Operating		(556	)		0			556			0			556

	0			0			0			0			0		Total Construction Period Operating		(556	)		0			556			0			556


	57,915			46,114			(11,801	)		47,927			(9,989	)	Total Controllable Operating Expenses		571,297			565,801			(5,496	)		527,266			(44,030	)


	109,010			107,076			1,935			106,254			2,756		Controllable NOI		1,347,327			1,265,361			81,966			1,204,224			143,103


															NON-CONTROLLABLE OPERATING EXPENSES

															TAXES & INSURANCE

	0			0			0			2,328			2,328		639002 - Ad Valorem Tax Service		5,298			0			(5,298	)		26,690			21,392
	15,436			16,957			1,521			15,416			(20	)	671001 - Real Estate Taxes		185,230			203,485			18,255			184,986			(244	)
	0			369			369			0			0		671002 - Personal Property Tax		3,577			4,433			857			3,809			233
	0			0			0			0			0		671003 - Real Estate Tax — Prior Year		0			0			0			5,845			5,845
	0			0			0			0			0		671005 - Tax Refund — Prior Years		(14,003	)		0			14,003			0			14,003
	516			355			(161	)		(826	)		(1,342	)	671900 - Business Licenses and Permits		2,313			4,264			1,951			3,678			1,365
	4			4			0			4			0		671902 - Sales and Use Tax		54			47			(6	)		50			(3	)
	0			0			0			0			0		832038 - Construction Period Taxes		(878	)		0			878			0			878

	15,956			17,686			1,730			16,921			965		Total Taxes		181,590			212,229			30,639			225,058			43,467

	6,002			7,796			1,794			7,796			1,794		672000 - Hazard Insurance		75,635			93,555			17,920			94,241			18,606
	108			63			(45	)		66			(41	)	672100 - Fidelity Bond Insurance		823			750			(73	)		713			(110	)
	111			(105	)		(216	)		38			(73	)	672900 - Other Insurance		(676	)		(1,259	)		(583	)		(1,197	)		(521	)

	6,221			7,754			1,533			7,900			1,680		Total Insurance		75,782			93,046			17,264			93,757			17,976


	22,177			25,440			3,263			24,821			2,645		Total Taxes & Insurance		257,372			305,275			47,903			318,815			61,443


	AIMCO Statement of Operations — Detail
	000500 — Presidential House
	For the Period Ended December 2005 (12OSD2)
APPLICATION :AIMCOPROPERTY	Run Date: 4/27/2007 9:19 AM	USER ID: gcoalson


Current			Current		Current			Previous Yr		Previous Yr				Current		Current			Current			Previous			Previous Yr
Month			Month		Month			Month		Cur Month				YTD		YTD			YTD			Year			Current YTD
Actual			Budget		Variance			Actual		Variance				Actual		Budget			Variance			Actual			Variance
	86,834			81,636		5,197			81,433		5,401		Reportable NOI		1,089,955		960,086			129,869			885,409			204,546


OTHER NON-CONTROLLABLE OPERATING EXPENSES

	0			0		0			0		0		625013 - Topside Comm/Ref Amortization		0		0			0			(7,044	)		(7,044	)

	0			0		0			0		0		Total Misc Non-Controllable Rev &		0		0			0			(7,044	)		(7,044	)

	9,410			7,708		(1,702	)		8,028		(1,381	)	632000 - Management Fees		95,595		91,598			(3,997	)		85,700			(9,894	)

	9,410			7,708		(1,702	)		8,028		(1,381	)	Total Management & Accounting F		95,595		91,598			(3,997	)		85,700			(9,894	)

	0			0		0			0		0		615700 - Environmental Expenses		5		524			520			2,003			1,998

	0			0		0			0		0		Total Property Upgrades		5		524			520			2,003			1,998


	9,410			7,708		(1,702	)		8,028		(1,381	)	Management, Acctg & Oth Fees		95,599		92,123			(3,477	)		80,660			(14,940	)


	77,424			73,929		3,496			73,404		4,020		Property Net Operating Income		994,356		867,963			126,392			804,749			189,606


	157,091			0		(157,091	)		0		(157,091	)	654215 - Insurance Damage Expense		219,222		0			(219,222	)		2,000			(217,222	)
	0			0		0			0		0		915000 - Casualty Basis Write-Off		0		0			0			(36,566	)		(36,566	)

	157,091			0		(157,091	)		0		(157,091	)	Total Casualty G/L		219,222		0			(219,222	)		(34,566	)		(253,788	)

	4,222			4,855		633			4,897		675		662000 - Deprec. — Buildings		58,826		58,319			(507	)		49,022			(9,803	)
	10,652			5,944		(4,708	)		8,668		(1,985	)	666000 - Deprec. — Furnishings		102,441		81,269			(21,172	)		112,179			9,738

	14,874			10,799		(4,075	)		13,565		(1,309	)	Total Depreciation Expense		161,266		139,588			(21,678	)		161,201			(66	)

	0			0		0			20		20		834000 - Legal		81		1,146			1,065			1,136			1,055

	0			0		0			20		20		Total Partnership Legal		81		1,146			1,065			1,136			1,055

	0			0		0			3,350		3,350		839100 - Asset Disposal Costs		0		0			0			3,350			3,350
	0			0		0			0		0		931000 - Office Payroll		7,212		(431	)		(7,643	)		(423	)		(7,635	)

	0			0		0			3,350		3,350		Total Partnership Other Expense		7,212		(431	)		(7,643	)		2,927			(4,285	)


	0			0		0			3,370		3,370		Total Partnership Expense		7,293		714			(6,579	)		4,063			(3,230	)


	203,552			43,947		(159,605	)		49,784		(153,767	)	Total Noncontrollable Operating E		740,752		537,700			(203,053	)		530,172			(210,580	)


	261,467			90,061		(171,406	)		97,711		(163,756	)	Total Operating Expenses		1,312,049		1,103,500			(208,549	)		1,057,438			(254,610	)


	(94,541	)		63,129		(157,670	)		56,470		(151,011	)	Operating Income		606,575		727,661			(121,086	)		674,052			(67,477	)


2000		2001		2002		2003		2004		2005		2006		Indicators	2007		2008		2009		2010		2011
	71.5		73.7		74.1		76.9		80.0		84.1		87.1	Gross Metro Product, C$B		88.9		91.3		93.9		96.5		99.2
	3.3		3.1		0.6		3.7		4.0		5.2		3.5	% Change		2.1		2.8		2.7		2.8		2.8
	996.3		1,008.5		991.3		984.3		1,005.8		1,029.9		1,047.4	Total Employment (000)		1,063.5		1,075.8		1,090.2		1,106.2		1,122.6
	2.7		1.2		-1.7		-0.7		2.2		2.4		1.7	% Change		1.5		1.2		1.3		1.5		1.5
	5.1		6.1		6.5		5.9		5.5		4.4		3.8	Unemployment Rate		3.5		3.5		3.5		3.5		3.5
	8.4		4.3		3.7		3.8		8.3		5.5		6.9	Personal Income Growth		6.5		4.6		4.6		4.9		5.2
	2,260.5		2,287.3		2,315.2		2,334.1		2,356.2		2,373.1		2,402.8	Population (000)		2,432.7		2,460.3		2,490.3		2,524.0		2,563.3
	5,998		6,828		6,374		8,740		9,603		9,922		6,910	Single-Family Permits		5,811		6,378		6,556		6,723		6,899
	6,477		7,168		8,232		6,793		13,253		16,198		14,071	Multifamily Permits		8,754		9,295		9,732		10,178		10,536
	138.2		159.5		184.3		221.2		271.8		349.9		375.3	Existing Home Price ($Ths)		360.8		357.6		365.8		375.2		384.5
	8,131		13,801		18,319		28,675		27,761		36,356		30,442	Mortgage Originations ($Mil)		29,612		26,475		26,935		27,534		27,980
	24.8		12.0		12.5		3.5		8.1		2.5		14.2	Net Migration (000)		14.3		11.7		13.9		17.4		22.6
	12,446		14,447		14,607		14,487		12,604		16,579		8,020	Personal Bankruptcies		9,629		10,465		11,617		12,773		13,487

STRENGTHS & WEAKNESSES

STRENGTHS

U.S. gateway to fast growing economies of Latin America.

Seen as a gateway to U.S. Hispanic market by foreign fi rms.

Well-developed shipping and distribution infrastructure.

WEAKNESSES

§		Low housing affordability and high crime rates.

§		Proximity to Everglades limits westward expansion.

§		Congested roads and airport.

CURRENT EMPLOYMENT TRENDS

January 2007 Employment Growth

% change year ago, 3 mo. MA

FORECAST RISKS


SHORT	é	LONG	ê	RISK-ADJUSTED	-0.53%
TERM	é	TERM	ê	RETURN, ’06-11	-0.53%

UPSIDE

•		Free Trade Area of the Americas is created, with MIA as Secretariat.

•		Cuba opens up to greater foreign investment.

DOWNSIDE

•		A severe downturn in the housing market.

•		In-migration from Latin America deteriorates.

•		Rising insurance premiums and costs of living hamper business expansion.

ANALYSIS

Recent Performance. Miami’s economy is expanding at a moderate but stable pace. Unlike most other Florida metro areas, MIA’s growth did not slow significantly over the past year; job growth no longer lags behind the heretofore surging Ft. Lauderdale and West Palm Beach areas, due in part to more stable construction employment. MIA is now only growing marginally slower than the state, the remaining gap being accounted for by slower population growth.

Benchmark revisions marked stronger construction job growth through mid-2006 in MIA, although it did falter in recent months. MIA’s financial services industry, which boomed in 2006, provides some support for the labor market in the wake of the construction downturn. This, too, may falter as mortgage lending eases, but labor markets remain decidedly tight with a jobless rate below 3.5%, the lowest on record.

Housing. The construction boom will peter out later in the year, and while an outright bust may not occur, housing-related activity and house prices will continue to sag until the accumulated excesses have been worked off. MIA is running behind the rest of the state in the housing cycle; the metro division’s housing markets are faring better than in many other parts of the state. There are still no signs of a trend decline in home prices in the metro division. The median house price for existing homes hit a trough last fall but has rebounded since and even hit a record high in January according to the Florida Association of Realtors. But all is not well. Home sales have been sagging since the spring of 2006 and saw a further drop in the first two months of this year. The buildup of inventory of unsold homes has reached dizzying heights and, if unleashed on the market, will no doubt cause prices to drop. This inventory is already discouraging new construction as indicated by the fall-off in permits.

Tourism. Buoyant tourism and business travel benefit the area’s hotel industry with high utilization rates in the form of rapid room rate growth and record-high revenue per room. MIA’s tourism industry saw a near-record number of visitors in 2006. Added capacity and softening visitor numbers are, however, chipping away at utilization rates. A weakened dollar keeps international visitation strong, but the weaker U.S. economy will slow domestic visitors, making the coming year somewhat leaner for the industry.

Population. MIA’s population growth remained stable in 2006 in contrast to sharp decelerations elsewhere in southeast Florida. The rate of growth is broadly in line with the nation, but considerably slower than fast-growing Florida, reflecting that MIA is nearly fully built and faces constraints, such as a shortage of land, which dampens the feasible pace of expansion. Traditional migration patterns persist: net international in-migration exceeds net domestic out-migration, resulting in a small net positive total. MIA serves as an immigration hub, with a younger age structure, but many immigrants subsequently resettle elsewhere.

Miami’s near-term outlook is for a slight moderation of growth, due to a slowdown in construction and housing-related industries. It will likely take longer for the housing correction to work itself through in MIA than in other Florida metro areas, as the metro division’s demographic fundamentals are weaker than the rest of the state. Demographics will also hamper the long-term growth prospects of the metro division, resulting in moderate long-term growth performance.

Per Gunnar Berglund
March 2007



© 2007 CB Richard Ellis, Inc.		Moody’s Economy.com, Inc. • www.economy.com • help@economy.com • Précis METRO

EMPLOYMENT & INDUSTRY

TOP EMPLOYERS


Baptist HealthSystems of Southern Florida			10,683
Jackson Health System			10,453
University of Miami			9,367
American Airlines			9,000
Miami-Dade Community College			5,400
United Parcel Service, Inc.			5,000
BellSouth Corporation			4,800
Winn-Dixie Stores, Inc.			4,616
Precision Response Corporation			4,196
Publix Supermarkets, Inc.			4,000
Florida Power & Light Company			3,665
Florida International University			3,500
Macy’s of Florida			3,368
Royal Caribbean Intl./Celebrity Cruise			3,300
Carnival Cruise Lines			3,000
Mount Sinai Medical Center			3,000
American Sales & Management			2,800
Miami Children’s Hospital			2,571
Wachovia Corporation			2,500
Mercy Hospital			2,433


Source: The Beacon Council, December 2005

Public


Federal			20,033
State			16,841
Local			114,985

2006

COMPARATIVE EMPLOYMENT AND INCOME


	% of Total Employment									Average Annual Earnings
Sector	MIA			FL			US			MIA		FL		US
Construction		5.1	%		8.0	%		5.6	%	$	49,104	$	40,555	$	45,244
Manufacturing		4.6	%		5.0	%		10.4	%	$	49,781	$	56,862	$	65,673
Durable		57.9	%		68.5	%		63.4	%	nd		$	59,015	$	67,102
Nondurable		42.1	%		31.5	%		36.6	%	nd		$	52,665	$	63,325
Transportation/Utilities		5.9	%		3.1	%		3.7	%	nd		$	45,949	$	54,428
Wholesale Trade		7.1	%		4.3	%		4.3	%	$	59,869	$	57,872	$	62,643
Retail Trade		12.0	%		12.6	%		11.3	%	$	28,642	$	27,160	$	26,652
Information		2.1	%		2.1	%		2.2	%	$	96,063	$	64,910	$	79,678
Financial Activities		7.1	%		6.8	%		6.1	%	$	48,572	$	37,821	$	51,729
Prof. and Bus. Services		14.7	%		16.7	%		12.9	%	$	42,082	$	38,450	$	49,211
Educ. and Health Services		13.4	%		12.1	%		13.1	%	$	40,111	$	40,236	$	39,829
Leisure and Hosp. Services		9.6	%		11.3	%		9.6	%	$	25,527	$	22,018	$	19,370
Other Services		4.0	%		4.2	%		4.0	%	$	17,887	$	20,926	$	22,940
Government		14.5	%		13.7	%		16.1	%	$	59,239	$	53,890	$	53,033


Sources: Percent of total employment — Moody’s Economy.com & BLS, 2006; Average annual earnings — BEA, 2004

HOUSE PRICES


Source: OFHEO, 1987Q1=100, NSA

CREDIT QUALITY


MOODY’S
RATING	COUNTY	Aa3

LEADING INDUSTRIES


NAICS	Industry	Employees (000)
GVSL	State & Local Government		131.8
6221	General Medical and Surgical Hospitals		35.0
7221	Full-Service Restaurants		30.3
7222	Limited-Service Eating Places		26.9
7211	Traveler Accommodation		23.8
5613	Employment Services		22.6
4451	Grocery Stores		21.7
5411	Legal Services		20.3
GVF	Federal Government		20.0
6211	Offices of Physicians		19.7
5616	Investigation and Security Services		18.2
5221	Depository Credit Intermediation		16.6
2382	Building Equipment Contractors		15.5
5617	Services to Buildings and Dwellings		14.3
4481	Clothing Stores		13.7

	High-tech employment		28.2
	As % of total employment		2.7


Sources: BLS, Moody’s Economy.com, 2006

MIGRATION FLOWS


	Number		Median
Into Miami, FL	of Migrants		Income
Fort Lauderdale, FL		14,911		23,681
New York, NY		6,301		23,211
West Palm Beach, FL		1,855		19,571
Orlando, FL		1,745		16,506
Tampa, FL		1,260		17,759
Atlanta, GA		989		23,024
Los Angeles, CA		877		20,546
Washington, DC		866		33,694
Chicago, IL		854		26,098
Nassau, NY		667		25,492
Total Inmigration		63,153		20,199

From Miami, FL
Fort Lauderdale, FL		29,184		26,290
Orlando, FL		4,280		17,472
West Palm Beach, FL		3,493		22,571
Cape Coral, FL		3,355		17,671
Tampa, FL		2,795		18,150
New York, NY		2,632		18,555
Atlanta, GA		2,172		21,947
Naples, FL		1,777		17,999
Jacksonville, FL		1,104		23,446
Port St. Lucie, FL		1,103		26,577
Total Outmigration		90,336		21,790

Net Migration		-27,184		-1,591

Net Migration, MIA



	2003	2004	2005	2006
Domestic	-36,030	-28,689	-27,673	-29,360
Foreign	40,302	36,479	38,663	38,723
Total	4,272	7,790	10,990	9,363


Sources: IRS (top), 2005; Census Bureau, 2006

PER CAPITA INCOME


Source: Bureau of Economic Analysis, 2004

Moody’s Economy.com, Inc. • www.economy.com • help@economy.com • Précis METRO

Miami

MIA’s housing markets have held up somewhat better than has been the case in many other parts of the state. And unlike many other parts of the state, residential construction remains vibrant in MIA. Even so, the metro area’s house prices have decelerated sharply; by some measures they have even started to fall in absolute terms. Still more troubling is the rapid buildup of inventories of unsold homes, which have reached levels three to four times higher than what is widely considered equilibrium. Going forward, these excessive inventories will weigh on house prices and also, ultimately, on new construction.

MIA’s labor market displays different dynamics than most other parts of the state. While the metro area’s unemployment rate is low compared to the nation, it remains higher than that of the state. The gap between MIA’s and Florida’s performances has narrowed in recent months, however, as MIA’s growth remains steady while Florida’s growth has moderated. Florida’s labor market is demand-driven, with labor force participation responding to lower unemployment rates. In MIA, however, changes in the labor force participation rate have preceded those of its employment rate, suggesting that the metro area’s labor market is more supply-driven.

Moody’s Economy.com, Inc. • www.economy.com • help@economy.com • Précis METRO


VALUATION & ADVISORY SERVICES

101 East Kennedy Boulevard, Suite 3140
Tampa, Florida 33602
Phone-813-261-4510
Fax – 813-261-4502

201 South Orange Avenue, Suite 1500
Orlando, Florida 32801
Phone -407.839-3163
Fax — 407.839-3132

Jerry P. Gisclair II, MAI
Managing Director
St. Cert. Gen. REA RZ2379

July 6^th, 2007

Myles Diamond
Senior Vice President
CAPMARK FINANCE, INC.
200 Whitmer Road
Horsham, PA 19044


Phone:		(215) 328-1323
Fax:		(215) 328-0315
E-Mail:		Myles_Diamond@GMACCM.com


RE:		Appraisal Agreement See Portfolio List below

Dear Mr. Diamond:

We are pleased to submit this proposal and our Terms and Conditions for the appraisal of the referenced real estate.

PROPOSAL SPECIFICATIONS


Purpose:		To estimate the Market Value of the referenced real estate.

Premise:		As Is, As Complete, and As Stabilized, as applicable

Rights Appraised:		Fee Simple

Intended Use:		Mortgage Underwriting purposes

Appraisal Process:		Complete

Report Type:		Self-Contained

Appraisal Standards:		Client Guidelines (Freddie Mac or Fannie Mae)/USPAP/FIRREA

Fee:		$118,000

Expenses:		Fee includes all associated expenses

Retainer:		A retainer is not required for this assignment

Payment Terms:		Final payment is due and payable upon delivery of the final report or within thirty (30) days of your receipt of our draft report, whichever is sooner. If a draft report is requested, the fee is considered earned upon delivery of our draft report.

		We will invoice you for a portion of the assignment which has been completed at the end of each calendar month.

Myles Diamond
Page 2 of 7


Report Copies:		Electronic draft copies and Three (3) bound final copies

Delivery Date:		Delivery of the appraisal conclusions and/or report(s) will be completed according to the following Delivery Schedule.

Delivery Schedule:

Draft Report:		Three (3) from engagement

Final Report:		Three (3) Days following warranted corrections and client request for finals

Start Date:		The appraisal process will start upon receipt of your signed agreement and the property specific data.
Acceptance Date:		These specifications are subject to modification if this proposal is not accepted within three (3) business days from the date of this letter.

If available, we will need the following information to complete this assignment.

	•		Site plan/survey with Legal description

	•		Property contact

	•		Three (3) years of operating statements and current operating budget

	•		Current rent roll

	•		Engineering studies, environmental reports, etc.

	•		Current real estate tax bill

	•		Recent sale information (if sold within the past three years)

	•		Any other information relevant to the valuation of the subject.

SCOPE OF WORK

The scope of work identified for this assignment includes the following steps:

Extent to Which the Property is Identified

CBRE will collect the relevant physical characteristics about the subject via a physical identification and inspection of both the interior and exterior of the subject property. The physical property will be legally identified through its postal address, assessor’s records, the provided legal description and the provided title report. Economic characteristics of the subject will be identified via an analysis of leases and/or lease briefs between the lessor and lessee, recent rent roll and historical operating statements.

Extent to Which the Property is Inspected

CBRE will conduct a physical inspection of both the interior and exterior of the subject property, as well as its surrounding environs on the effective date of appraisal.

Type and Extent of the Data Researched

CBRE will physically inspect the micro and/or macro market environments with respect to physical and economic factors relevant to the valuation process. This knowledge will



© 2007 CB Richard Ellis, Inc.

Myles Diamond
Page 3 of 7

be expanded through interviews with regional and/or local market participants, available published data and other various resources. CBRE will also conduct regional and/or local research with respect to applicable tax data, zoning requirements, flood zone status, demographics, income and expense data, and comparable listing, sale and rental information.

Type and Extent of Analysis Applied

CBRE will analyze the data gathered through the use of appropriate and accepted appraisal methodology to arrive at a probable value indication via each applicable approach to value. All three traditional approaches to value will be considered and utilized. CBRE will then correlate and reconciled the results into a reasonable and defensible value conclusion, and estimated a reasonable exposure time and marketing time associated with the value estimate presented.

Please note if it’s a requirement per your underwriting or guidelines to have all three approaches to value, although some approaches may be limited in application.

TERMS AND CONDITIONS

The attached Terms and Conditions and Specific Property Data Request are deemed a part of this agreement as though set forth in full herein.

We appreciate this opportunity to be of service to you on this assignment. If you have additional questions, please contact us.

Sincerely,

CB RICHARD ELLIS, INC.
Valuation & Advisory Services

Jerry P. Gisclair II, MAI
Managing Director
St. Cert. Gen. REA RZ2379

Phone: (813) 261-4510
Fax: (813) 261-4502
E-mail: jerry.gisclair@cbre.com

The following list of properties represents the subject.



© 2007 CB Richard Ellis, Inc.

Myles Diamond
Page 4 of 7


					Number of
	PROPERTY NAME	Street Address	City	State	units		Fee		Timing
1	COUNTRY LAKES I #041515	1598 Fairway Drive	Naperville	IL		240	$	4,500	3 weeks
2	FERNTREE APARTMENTS #041723	5023 N. 18th Street	Phoenix	AZ		219	$	5,500	3 weeks
3	COUNTRY LAKES II #042527	1598 Fairway Drive	Naperville	IL		400	$	4,500	3 weeks
4	ECHO VALLEY APARTMENTS #042905	56 Maple Avenue	West Warwick	Rl		100	$	5,500	3 weeks
5	PARKWAY (VA) #038679	416 Merrimac Trail	Williamsburg	VA		148	$	6,000	3 weeks
6	TOWNSHIP AT HIGHLANDS APTS. #042932	901 East Phillips Lane	Littleton	CO		161	$	5,500	3 weeks
7	WINDRIFT APARTMENTS #038835	949 Crowsnest Circle	Orlando	FL		288	$	5,500	3 weeks
8	AUTUMN RUN #008677	1627 Country Lakes Drive	Naperville	IL		320	$	4,500	3 weeks
9	BALDWIN OAKS #038404	299 Baldwin Road	Parsippany	NJ		251	$	5,500	3 weeks
10	BRIGHTON CREST #000713	1650 Barnes Mill Road	Marietta	GA		320	$	5,500	3 weeks
11	COLONY AT KENILWORTH #008637	1 Bonrock Ct	Towson	MD		383	$	6,000	3 weeks
12	GOVERNORS PARK #000712	700 East Drake Road	Fort Collins	CO		188	$	6,000	3 weeks
13	LAMPLIGHTER PARK #005762	825 156th Avenue, NE	Bellevue	WA		174	$	6,000	3 weeks
14	PEAKVIEW PLACE #008656	9959 East PeakView Ave	Englewood	CO		296	$	5,500	3 weeks
15	POST RIDGE APTS.#005741	595 Hicks Road	Nashville	TN		150	$	5,500	3 weeks
16	PRESIDENTIAL HOUSE #000500	1572 NE 191st Street	North Miami Beach	FL		203	$	5,500	3 weeks
17	VILLAGE GREEN #005705	112 Essex Avenue	Altamonte Springs	FL		164	$	5,500	3 weeks
18	DEER CREEK #006000	305 Deer Creek Drive	Plainsboro	NJ		288	$	5,000	3 weeks
19	HUNTERS GLEN IV #000517*	1109 Hunters Glen Drive	Plainsboro	NJ		264	$	4,750	3 weeks
20	HUNTERS GLEN V & VI #000518 #000519	1109 Hunters Glen Drive	Plainsboro	NJ		328	$	4,750	3 weeks
21	TWIN LAKES APARTMENTS #000270	31790 US Hwy 19 North	Palm Harbor	FL		262	$	5,500	3 weeks
22	WILLOW PARK	375 Palm Springs Drive	Altamonte Springs	FL		185	$	5,500	3 weeks

	Portfolio Totals					5,332	$	118,000

AGREED AND ACCEPTED

FOR MYLES DIAMOND / CAPMARK FINANCE, INC.:


Signature				Date

Name				Title

Phone Number				Fax Number

E-Mail Address



© 2007 CB Richard Ellis, Inc.

QUALIFICATIONS

QUALIFICATIONS OF

CLAUDE R. “BUDDY” URBAN, MAI
Senior Real Estate Analyst/Multi-family Specialist

CB Richard Ellis, Inc., Valuation and Advisory Services
777 Brickell Avenue, Suite 910
Miami, Florida 33131
(305) 381-6449

EDUCATIONAL

Bachelor of Business Administration, Sam Houston State University, Huntsville, Texas

LICENSE(S)/CERTIFICATION(S)

Certified General Real Estate Appraiser: State of Florida (No. RZ 2815)
Certified General Real Estate Appraiser: State of Nevada (No. 04813)
Certified General Real Estate Appraiser: State of Texas (No. TX-1320516-G)
Licensed Real Estate Broker: State of Texas

PROFESSIONAL

Appraisal Institute

Designed Member (MAI), Certificate No. 9260

EMPLOYMENT EXPERIENCE


1984 to 1986		Associate Consultant/Appraiser, Michael J. Urban & Assoc., Inc. Houston, TX
1986 to 1992		Associate Consultant/Appraiser, Dominy, Ford & McPherson, Inc., Houston, TX
1992 to 1994		President and Principal Appraiser, Buddy R. Urban & Assoc., Houston, TX
1994 to 1998		President and Principal, NaturaLawn of America and Burnett Pipeline Co., Houston, TX
1998-2003		Associate Consultant/Appraiser, Gerald A. Teel, Inc., Houston, TX
2003-Present		CB Richard Ellis, Inc., Miami, FL

Professional experience has been in the fee preparation/review of real estate appraisals, feasibility studies, rent analyses and market studies of commercial and residential properties. Primary experience encompasses a wide variety of property types including office, retail, industrial, multifamily, hotel, medical office, restaurant, parking garage, car wash, low-income housing, bond financed multi-family, residential subdivision, master-planned business park, bank branch, special purpose, and single family.

Assignments completed in Florida, Louisiana, Mississippi, Nevada, New Mexico, Virgin Islands, Puerto Rico and Texas.

QUALIFICATIONS

QUALIFICATIONS OF

JAMES E. AGNER, MAI, SGA
Managing Director – Florida
Nat. Director — Net Lease Valuation Group
Nat. Director – Golf Valuation Group

CB Richard Ellis, Inc., Valuation and Advisory Services
777 Brickell Avenue, Suite 910
Miami, Florida 33131
(305) 381-6480

EDUCATIONAL

BS, Marketing, Florida State University, Tallahassee, Florida — 1981
Real Estate Major, Florida Atlantic University — 1984
Appraisal Institute

Appraisal Institute Courses 1A and 1B. Attended numerous educational seminars sponsored by the Appraisal Institute including Standards of Professional Practice, Market and Feasibility Studies for Shopping Centers, USPAP Florida State Law, Public Safety and Property Values and Real Estate Valuation in the Appraisal Industry.

LICENSE(S)/CERTIFICATION(S)

Registered Real Estate Broker-Salesman; State of Florida (No. BL0404088)
Certified General Appraiser; State of Florida (No. RZ382)

PROFESSIONAL

Appraisal Institute

Designated Member (MAI), Certificate No. 7791
South Florida Caribbean Board of Directors (Past Director)
Society of Golf Appraisers – Designated Member (SGA) — 2005

Qualified Expert Witness
Circuit Courts — State of Florida
United States Bankruptcy Courts

EMPLOYMENT EXPERIENCE

Twenty-six years of Real Estate Appraisal and Consulting experience throughout the State of Florida and in the Caribbean.


1981 to 1984	Florida Dept. of Transportation	Ft. Lauderdale, FL
1984 to 1985	Raymond Kaiser Engineer	Ft. Lauderdale, FL
1985 to 1995	Quinlivan Appraisal & Consulting	South Miami, FL
4/95 to 10/95	Coastal Appraisal Services	Naples, FL
1995-Present	CB Richard Ellis, Inc. -	Miami, FL
	Valuation and Advisory Services – Managing Director — Florida


$ Per Unit		Subject Units			Total

$20,000	x		203	=	$	4,060,000
$23,500	x		203	=	$	4,770,500
Indicated Value:					$	4,700,000


Pro Forma Operating Data	*Total*			*Per Unit*

Effective Gross Income	$	2,309,636		$	11,378
Operating Expenses	$	1,254,536		$	6,180
Expense Ratio		54.32	%
Net Operating Income	$	1,055,100		$	5,198


VALUATION	*Total*		*Per Unit*

Land Value	$	4,700,000	$	23,153
Cost Approach	$	17,600,000	$	86,700
Sales Comparison Approach	$	17,600,000	$	86,700
Income Capitalization Approach	$	17,600,000	$	86,700

Insurable Value	$	14,410,000	$	70,985


CERTIFICATION OF THE APPRAISAL		i

SUBJECT PHOTOGRAPHS	ii

SUMMARY OF SALIENT FACTS	ix

TABLE OF CONTENTS	xi

INTRODUCTION		1

AREA ANALYSIS		5

NEIGHBORHOOD ANALYSIS		8

MARKET ANALYSIS		12

SITE ANALYSIS		28

IMPROVEMENTS ANALYSIS		34

ZONING		39

TAX AND ASSESSMENT DATA		41

HIGHEST AND BEST USE		45

APPRAISAL METHODOLOGY		48

LAND VALUE		49

COST APPROACH		54

INSURABLE VALUE		58

SALES COMPARISON APPROACH		60

INCOME CAPITALIZATION APPROACH		66

RECONCILIATION OF VALUE		93

ASSUMPTIONS AND LIMITING CONDITIONS		94

ADDENDA
A Glossary of Terms
B Land Sale Data Sheets
C Improved Sale Data Sheets
D Rent Comparable Data Sheets
E Operating Data
F Legal Description
G Précis METRO Report - Economy.com, Inc.
H Engagement Letter
I Qualifications


		North:		Ives Dairy Road
		South:		NE 135^thStreet
		East:		Biscayne Boulevard
		West:		Interstate 95


				North Miami Beach
Category	Miami-Dade County			Submarket

Existing Supply (Units)		30,071			2,741
New Construction (Units)		521			0
Annual Absorption (Units)		420			0
Average Occupancy		97.2	%		95.5	%


Average Rent	$ Per Unit		$ Per SF		$ Per Unit		$ Per SF

All Apartments	$	1,192	$	1.388	$	1,319	$	1.244
Efficiency	$	847	$	1.844		N/A		N/A
One-Bedroom	$	1,038	$	1.451	$	1,050	$	1.270
Two-Bedroom	$	1,334	$	1.334	$	1,473	$	1.227
Three-Bedroom	$	1,592	$	1.299	$	1,585	$	1.225

Date of Survey	May 2007				May 2007


		Transaction			Density	Adjusted Sale	Price Per		Price Per
No.	Property Location	Type	Date	Zoning	(UPA)	Price ¹	Acre		Bldg Unit

1	3372 N.W. 17th Avenue, Miami, FL	Sale	Mar-06	R-4 & G/I	149.86	$6,800,000	$	2,403,421	$	16,038

2	1551 N.W. 36th Street, Miami, FL	Sale	Jan-07	C-2	114.44	$2,749,000	$	3,419,580	$	29,880

3	12000 NE 16th Avenue, North Miami, FL	Sale	Feb-07	RU-3M	25.11	$5,100,000	$	569,196	$	22,667



Subject	1572 NE 191st Street,	—	—	RU-4, High Density	35.06	—		—		—
	North Miami Beach, Florida			Apartment House District


¹		Transaction amount adjusted for cash equivalency and/or development costs (where applicable) Compiled by CBRE


Sale No.		Occupancy			OER			EGIM

	1		96	%		44.35	%		8.29
	2		98	%		51.89	%		7.91
	3		98	%		53.64	%		8.51
	4		91	%		53.31	%		7.68

Subj.			93	%		54.32	%		—


Total Units		X		Value Per Unit		=		Value

	203		X	$	86,000		=	$	17,458,000
	203		X	$	88,000		=	$	17,864,000


Source	Indicated OAR

Comparable Sales		6.00	%
National Investor Survey		6.00	%
Market Participants		6.00	%
Band of Investment		6.70	%
CBRE Estimate		6.00	%


													Price Per
Sale		Trans Type		Sales		Size		Proposed	Price		Price PSF		Permitted

No.	Property Location	Date		Price		(Acres)		Use	Per Acre		of Land Area		Unit

1	3372 N.W. 17th Avenue	Sale		$	6,800,000		3.59	Affordable Housing	$	2,403,421	$	55.18	$	16,038

	Miami,FL 33142		3/2006

2	1551 N.W. 36th Street	Sale		$	2,725,000		1.09	92-Unit Residential Dev	$	3,419,579	$	78.50	$	29,880

	Miami,FL 33142		1/2007

3	12000 NE 16th Avenue	Sale		$	5,100,000		8.96	Apartments	$	569,196	$	13.07	$	22,667

	North Miami,FL 33161		2/2007


Sale		Trans Type	Yr.Built		NRA		Adj.Sale Price					Income Based On								Price		Price
No.	Name / Location	Date	No.Units		Avg Unit		Occ. at Sale			NOI		OAR			EGIM		OER			PSF		Per Unit

1	Asbury Park Apartments	Sale		1972		172,350	$	15,896,227		$	1,066,662	Existing								$	92.23	$	67,932

	17600 N.W. 5th Avenue	3/2006		234		737		96	%				6.71	%		8.29		44.35	%
	Miami,FL

2	Summerwinds	Sale		1972		291,744	$	32,000,000		$	1,947,333	Pro Forma								$	109.69	$	91,954

	490 NW 165th Street Road	8/2006		348		838		97.7	%				6.09	%		7.91		51.89	%
	North Miami,FL

3	Greenwich Park	Contract		1985		332,300	$	43,000,000		$	2,343,197	Pro Forma								$	129.40	$	106,965

	1550 NE 123rd Street	3/2007		402		827		98	%				5.45	%		8.51		53.64	%
	North Miami,FL

4	Somervale Apartments	Contract		1974		429,350	$	39,000,000		$	2,371,305	Pro Forma								$	90.83	$	94,660

	21010 NW 7th Avenue	5/2007		412		1,042		91.3	%				6.08	%		7.68		53.31	%
	Miami,FL