SENIOR-POSITION DEBT OFFERING

The loan was originally made to the Borrower and partially funded in August 2021 by Fairway Vivo GP Fund LLC. Co-lenders will purchase a participating interest in the promissory note previously issued to the GP Fund by the Borrower. Proceeds from the loan were previously used to acquire the property and will also be used to convert the Property to multifamily housing, then lease, operate, and potentially sell the property.

Once subscribed, co-lenders will begin earning interest on their pro rata portion of the loan amount. The loan is serviced by Fairway America and secured by a first-position interest in the Property.

Project Strategy ²

Fairway America and Vivo Investments believe that recent and current pressures on the hospitality real estate market, combined with an undersupply of work-force level multifamily housing throughout the U.S., create a unique and significant market opportunity to acquire hotel and motel properties at attractive prices nationwide and repurpose them into a more attractive asset class. We believe the Property offers a unique opportunity because New Braunfels is well located, growing, and lacking affordable housing options.

Opportunity Highlights ²

• Acquisition costs plus currently anticipated costs of conversion would result in an all-in basis of $96K per unit, versus recent sales averaging $144K per unit³
• The Co-Managers believe this is a unique opportunity to acquire a quality asset in a high barrier to entry market with housing demand anchored by consistent population growth
• The Co-Managers expect to realize operational and management efficiencies due to the proximity of the Property to another Co-Manager conversion project

² The project strategy is subject to change. There are many risks to participating in this opportunity. See “Risk Factors and Fee Disclosures” in the Offering Memorandum for a discussion of some of these risks, including loss of capital, illiquidity, and lack of diversification. This opportunity is unsuitable for investors who cannot afford a complete loss of capital.

³Costar New Braunfels North Submarket Report, April 2021