Page 4 - Oxford West Investor Quarterly Report 1.25.22

Dear Investors,

Oxford West Apartments maintains a consistent pace heading into
Q2. Below is a brief update on Industry Trend, Investment Return, and
Investment Performance..

INDUSTRY TREND

Oxford West is currently 80% occupied. With the market still recovering
from the Pandemic disruption last year, Miami University welcomed its
largest incoming class this year, increasing freshmen enrollment by 24%.
Freshmen and Sophomores are required to live on campus; however,
this increase will push more upper classman into the off-campus housing
market. Some international students were able to return for Fall 2021 and
Spring 2022. International enrollment is expected to return to pre-covid
numbers by Fall of 2022. This will ultimately aid in our lease up efforts and
restore our traditional resident demographic.

INVESTMENT RETURN

The General Partner will continue to suspend cash distributions to the
partnership until occupancy returns to an acceptable level. In attempt to
reduce strain on the cash performance, the management team has worked
to reduce staffing and the scope of some service contracts. Nevertheless,
with the property hovering just below breakeven, we are unable to fully
absorb core expenses. Consequently, in accordance with the Limited
Partnership Agreement (LPA), Section 5.6c, the General Partner elected to
loan the partnership 100K to cover Q1 outstanding expenses while income
was limited. We believe this was the preferred route to avoid a capital call
to all the members of the partnership. The loan will be repaid later at a rate
of Prime + 2%, according to the LPA. The General Partner believes the
100K was sufficient to sustain the property at breakeven. Ultimately, we
regret that the property is unable to provide a consistent cash return to the
partnership as originally projected; therefore, we are working feverishly to
improve occupancy with the goal of either resuming cash distributions or a
potential disposition of the asset with a full return of your initial investment.
We will continue to monitor cash levels and provide an update at the end
of Q3.

INVESTMENT PERFORMANCE

Preleasing has just begun for the 2022-23 Academic Year. Oxford West is
19.6% preleased, which is comprised of 74 renewals and 33 new leases.
The four bedrooms are the most popular floorplan in the early market
with the undergrads. Oxford West had the strongest prelease velocity in
the market during winter break and are currently ahead of our forecasted
prelease goals for the year. With the return of our international market, we
expect to reach our current prelease goal of 93%. The management team
has implemented Valentine Renewal incentive to encourage early lease
and renewals, as well as cross promotion at hockey games—waiving fees
for those who attend the game and bring in their wristbands.

Thank you for your partnership.