PRC MANAGEMENT CORP FIRM OVERVIEW

FIRM OVERVIEW
PRC is a full service real estate development, construction, property management, and acquisitions firm established in 1971. Our principals each possess over 25 years experience in multi-family real estate. We pride ourselves on being the best of breed in our field of New York Residential Real Estate and do not engage in businesses or ventures outside of our expertise. A strong component of PRCs success is its vertical integration. PRCs financial expertise and analysis allow us to provide forward looking asset management strategies and a road map from acquisition to disposition. Our construction management team enables us to add value at the ground level. Our property management experience enables us to add value through the day-to-day operations of an asset (including leasing and condo sales). Our maintenance arm (Triboro Maintenance Corp.) allows for seamless repairs and renovations if the need arises; further, our extensive network in New York Residential Real Estate coupled with our On-Line capabilities allows us to source the best potential acquisitions for our clients. PRC has worked with the largest developers and owners in New York City, a variety of Federal, State, and City agencies, and has operated all classes of residential assets, from ultra-luxury to low-income government subsidized units. During the 1970's PRC rehabilitated over $350 million worth of government assisted housing containing 4,000 New York City apartments. The company currently owns approximately 50 assets totaling approximately 2,000 units throughout New York, and operates an additional 5,000 units for third parties.

PRC MANAGEMENT CORP MANAGEMENT OVERVIEW

MANAGEMENT OVERVIEW
PRC Management, a division of Property Resources Corporation (PRC), manages over 100 buildings containing approximately 7,000 units. Our portfolio includes approximately 2,000 units owned by affiliates of PRC and approximately 5,000 units owned by others. This portfolio ranges from high-end luxury rentals (including tax credit properties) and co-ops to middle and low-income rental properties. Our properties include The Metro, The Ludlow, Tudor Towers, The Octagon, Concourse Village, and Southbridge Towers. Our 28 years of experience (40 including proprietary management) in residential management, ranging from government assisted housing to ultra luxury condominiums and rentals gives us a competitive advantage and the business savvy to help maximize efficiency and profit. We are confident in our ability to provide the detail oriented and investor friendly reporting that can seamlessly incorporate your standards. Each of our property managers is a trained professional with a minimum of five years industry experience. To enhance our overall effectiveness, we ensure that a property draws from the strengths of our entire organization rather than that of any one particular manager. To that end, PRC has designed a unique team approach to management. PRC Management currently manages several Class A high-rise apartment buildings containing over 1,450 units. All properties are managed by a handpicked team that ensures maximum effectiveness in every discipline. Each team meets on a regular basis to review the status of each PRC property as well as to offer support to each manager in areas that are not their primary area of experience. No PRC manager handles a property in isolation. As such, each manager is part of the PRC network, operating with the ongoing support of our entire organization.

PRC MANAGEMENT CORP MANAGEMENT APPROACH

MANAGEMENT APPROACH
PRCs primary goal is to enhance the value of our clients investments. Our expertise is in providing cost efficient property management that relieves the owner of the burden of handling day to day operations. We are committed to implementing a management plan that maximizes profits at each of our clients assets by operating their properties in the most efficient and economic manner possible. To that end, we staff all our properties efficiently with seasoned employees. With the leadership of leasing professionals, we work to achieve low vacancy rates through use of inventive leasing ideas alongside more traditional methods. At PRC, we retain tenants by offering unparalleled service and staffing our properties with qualified and capable personnel. Additionally, we are mindful that a well-cared for building not only maintains tenant satisfaction, but also helps to prevent costly repairs. Accordingly, we ensure that our staff diligently maintains all building systems. PRC Management is an innovative and industrious firm. We are proud of our reputation, which is long-standing and hard earned. Virtually all of our staff have devoted their entire professional lives to the Real Estate Industry and possess the required training, experience and enthusiasm necessary for success in Real Estate Management.

COMPONENTS
PURCHASING In order to best serve all the properties managed by PRC Management, our purchasing procedures have been centralized so that we can obtain the best quality and price. The ability to combine like items, the advantage of obtaining bulk pricing, and the maintenance of delivery and billing on an individual property basis gives PRC Management and its clients a strong competitive advantage with regard to pricing and individual service. PRC Management has standard procedures for on-site staff related to purchasing. We utilize service and requirement contracts to meet the needs of each development. We also maintain inventory controls, including minimum and maximum points, to assist with re-order requirements. With purchasing centralized, there are fewer parties contacting the vendors and contractors, thus making internal controls much easier to monitor. All purchases are monitored and conducted by the purchasing manager in conjunction with management personnel. Our purchasing manager performs market analysis regularly to ensure effective purchasing. Should the need arise, building projects, including apartment restoration, will be bid out to at least three vendors with approval controls established by the Owners. It is this expertise that will enable us to advise the General Manager as to the reasonableness of expenditures and to review the on-site purchase operation authorized by the Owners.

PRC MANAGEMENT CORP MANAGEMENT APPROACH

Our extensive back-office includes more than 95 employees. PRC will give the Owners access to the most up to date Internet based computer systems, allowing you to track and monitor the operations of your properties on a real time basis. WORK ORDER PROCESSING To process work orders throughout the work order life cycle, PRC Management utilizes a state of the art work order system. The system allows for comprehensive dispatching and scheduling tools to enhance productivity. Additionally, the system utilizes specialized billing which automates industry standard billing practices. Through use of the work order system, PRC Management can maintain a full customer profile consisting of multiple sites, equipment information, warranties, service history and service contracts information. RCASH LOCKBOX PRC Management makes use of the RCash lockbox, which provides quick and accurate deposits to process all receipts. Through use of the lockbox, tenants enjoy the flexibility to pay rent by check, credit card or ACH. WEBLINKS Our goal is to provide up-to-the minute information whenever you want it. To that end, we provide each resident access to our Weblinks program. Weblinks gives tenants the ability to view the status of their account and/or make online payments (recurring and one-time). LEGAL PRC Managements legal department tracks all legal cases from start to finish. PRC also maintains good relationships with major L&T law firms throughout the region. MAINTENANCE To assist in the analysis and oversight of physical maintenance and capital projects, PRC Management draws on an in-house engineering department. Each property is managed by a seasoned General Manager and back-up staff with years of experience in the field, dedicated to managing this portfolio. GREEN INITIATIVES With new legislation and incentives being awarded both now and projected for the future, PRC has made strides to stay ahead of the curve in terms of planning and implementing GREEN initiatives for both its own portfolio and its

PRC MANAGEMENT CORP MANAGEMENT APPROACH

third party management. At Southbridge Towers, a nine building Mitchell Lama Cooperative, managed by PRC since November of 1995. Below is a summary of installations: Under the NYC Toilet Rebate Program, installed low flow (1.6 gallons per flush) toilets, which resulted in savings of approximately $250,000 a year in water bills. Restored the solar panels which had been installed during the 1980's to supplement hot water production. Replaced steam trap and valves in apartments. Replaced hot water heaters. Renovated public area lighting by installing energy efficient ballast. Installed light sensors in the trash rooms on each floor in lieu of light working at all times 24/7. Installed emergency lighting for hallway and stairwells. As part of a rehabilitation of the elevators solid state rectifiers, replaced the original motor generator sets required to produce DC current (applies high rise elevators only) For the above contracts, PRC staff coordinated preparation of Requests for Proposals to obtain consultant services and contractors, working together with the shareholder committees, Board of Directors and Attorney. Contracts were developed, bid and supervised to ensure proper coordination and completion with minimal changes. Currently, Management is coordinating the effort to install a new underground on-site boiler/co-generation plant to replace the current practice of purchasing steam directly from Con-Edison. Yearly (energy) savings is projected at over one million dollars. The consultant has completed the contract, approval has been obtained and bids are set for receipt on August 4th 2009. With respect to the management of LEED certified buildings, the Octagon, located at 888 Main Street, New York, NY, is LEED designated as New Construction Silver status. We assist ownership in maintaining this status and in implementing various other LEED and energy efficiency methods with the aim of lowering energy usage and helping the environment overall. AFFORDABLE HOUSING PRC Management has a long history and experience in the management and oversight of mixed-income buildings that include a component of affordable housing. Whether the property is under a strict IRS Tax-Credit affordable Housing Program or a more informal, voluntary type program (such as the Octagon), the PRC team includes many experts in the field to ensure that both initial occupancy and continued leasing to all affordable units within our portfolio is done in accordance with any regulatory agreement guidelines.

PRC MANAGEMENT CORP MANAGEMENT APPROACH

ACCOUNTING AND REPORTING PRC Management has an experienced staff, lead by a sophisticated Controller who has more than twenty years experience in the real estate industry. Our staffing structure provides professional financial strength and accommodates the practice of segregation of duties, a key component of internal controls. Further, PRC Management has an in-house information technology staff that services all PRC Management locations and is familiar with all forms of hardware, networking and software. PRC Management has an extensive communication system consisting of a computer based telephone system, computer networking, email system and AT&T mobile devices with push to talk capabilities. We will assume responsibility for the oversight, reporting, and management of your accounting in order to facilitate the annual audit process, ensure the preparation of timely financial statements, and to conform to GAAP accounting practices. PRC Management has also implemented rent collection policies and procedures together with disbursements for payment of invoices. PRC Management has developed annual budgets and budget tracking reports. As a management company, we maintain all necessary records and documentation for detailed reports. We require proper authorization and a complete detailed audit trail for all financial matters. It is the expertise outlined above and experience which will enable our firm to be of assistance to our General Manager with and/or monitor the financial process if required by the Owners.

PRC MANAGEMENT CORP DEVELOPMENT EXPERIENCE

DEVELOPMENT EXPERIENCE
Over the past ten years, PRC Management has been involved in the inception, construction and initial lease-up phases of no less than six (6) newly constructed luxury high-rise rental buildings consisting of approximately 2,000 residential units. Most of these projects also involved a segment of either low or moderate income housing which PRC oversaw and effectuated. PRCs input and involvement in these properties involved much more than the conventional management of the property. Members of the PRC team were present at numerous meetings during the buildings planning, engineering and developmental stages, as well as during the actual construction, initial lease-up and into the stabilized phase of each project. PRCs involvement prior to lease up included the layout and planning of the lobby, garage, management and leasing offices, gym and amenity areas, security and access control systems as well as other pertinent areas in each building. As a result, we believe that each building was ready for occupancy in a more efficient and usable manner.

PRC MANAGEMENT CORP DEVELOPMENT EXPERIENCE

PROPERTY The Regatta Princeton House Crotona Park West Savannah Shorehaven Maria Estela Houses West Farms Road Rehab University Avenue Rehab Harrison Avenue Rehab Macombs Road Rehab MBD II Associates Aldus III Featherbed Lane Restoration Monterey Avenue Rehab Maria Estela Houses II MBD I SEBCO III Esperanza Village Daly III SEBCO I Southern Boulevard Phase II Paul Robeson Houses SEBCO VI MBD III Associates Daly II Southern Boulevard Phase III Crotona Avenue Rehab Daniel Hale Williams Gates Patchen Housing SEBCO II Belmont II Associates Erma Cava Westres Associates Crotona Estates Marlene Estates TOTAL UNITS 182 213 560 142 172 236 208 230 184 156 158 173 154 171 102 185 201 146 173 182 175 80 100 74 100 122 74 116 104 63 42 35 70 56 46 5,185 DEVELOPMENT COST $65,000,000 $35,000,000 $33,233,000 $31,000,000 $15,000,000 $14,374,000 $13,728,000 $13,000,000 $11,592,000 $9,750,000 $8,834,000 $8,742,000 $8,700,000 $8,668,000 $8,137,000 $7,551,000 $7,470,000 $7,238,000 $6,275,000 $6,150,000 $4,562,000 $4,533,000 $4,526,000 $4,215,000 $3,925,000 $3,899,000 $3,741,000 $3,553,000 $2,992,000 $2,540,000 $2,514,000 $1,978,000 $1,825,000 $1,464,000 $1,085,000 $366,794,000