ELEMENT 41

REVENUES CONTINUE UPWARD TRAJECTORY THROUGH THE PANDEMIC

Element 41 has consistently collected above 93% of rent through the pandemic and rents have continued to grow. In fact, the last ten leases have averaged $1,094 overall and $1.29 PSF, 9% higher than in-place rents on a per square foot basis.

ACCESSIBLE, CENTRAL LOCATION PROVIDES SUSTAINED DEMAND

Element 41 is advantageously located right off of Hwy. 41 (37,600+ vehicles per day), along with direct access to I-75 (321,000+ vehicles per day). Just a 10 minute drive from the Cumberland Galleria submarket (80,000+ jobs), Element 41 enjoys direct access to one of Atlanta’s fastest growing job centers.

PROVEN IN-PLACE VALUE ADD PREMIUMS

Element 41 provides a rare value-add opportunity with positive economies of scale in a coveted location. In-place premiums on the current modest interior updates range between $100-$140 per unit across 101 units (20% of the property), illustrating the demand in the submarket for a more complete renovation package. 80% of Element 41’s 494 units consist of black appliances and laminate countertops—creating an unparalleled value add opportunity. Through the implementation of more luxury features such as hard-surface countertops, stainless steel appliances, modern white cabinetry, and smart home features—Element 41 is poised to garner $200+ premiums translating to a rental income increase of more than $1.1M/year.

IN THE SHORT AND LONG TERM, ELEMENT 41 WILL CONTINUE TO OUTPERFORM

The outstanding growth of the area and underlying fundamentals remain sound and relevant. However, the Pro Forma reflects the impacts to growth brought about by the COVID-19 pandemic and ownership has appropriately adjusted its pricing expectations to reflect these conditions.