Cannery Lofts Apartments - Wealth Management

Cannery Lofts Apartments
Dayton, Ohio
ACQUISITION
SUMMARY
Cannery Lofts is a 156-unit
apartment community
located in downtown
Dayton, Ohio.
Non-performing note
secured by Cannery Lofts
purchased on
May 13, 2011.
About Resource Real Estate
Opportunity REIT, Inc.
The REIT is a unique investment
opportunity that seeks to take advantage
of the current distressed commercial
real estate market; distressed sellers
of commercial real estate and deeply
discounted multifamily properties with
short-term operating issues that can be
resolved by experienced management
and new capital investment in order to
increase value for investors. Resource
Real Estate, Inc. (RRE), our sponsor and
its affiliates have been actively engaged
in distressed real estate investing and
turning around distressed properties
since 1991.
PURCHASE PRICE
» The note was originated in December
2004. The original principal amount
was $14,517,900 and secured by the
mortgage on Cannery Lofts.
» The borrower was in default for not
paying at least 15 months of debt
service payments.
» The note was acquired through
Resource Real Estate Opportunity
REIT at a discount for $7.1 million.
The contract purchase price was
51% of the $13.9 million outstanding
principal balance of the note.
» The purchase price represents a
63.1% discount to our estimate of
the replacement cost of the building
if built today.
WORKOUT PLAN
» Our plans with respect to the note
include, but are not limited to,
restructuring the loan, negotiating
a discounted payoff of the note with
the Borrower, selling the note or
foreclosing on the property securing
the loan.
This is neither an offer to sell nor a solicitation of an offer to buy the securities described herein; an offering is made only by prospectus. This information
must be preceded or accompanied by a prospectus in order to understand fully all of the implications and risks of the offering. Neither the Attorney
General of the State of New York nor any other state regulators have passed on or endorsed the merits of this offering. Any representation to the contrary
is a criminal offense. Shares offered through Resource Securities, Inc., an affiliate of RRE and member – FINRA, SIPC.

DAYTON, OH
PROPERTY FEATURES
Cannery Lofts is a 156-unit apartment community. Cannery was
constructed as an industrial building in 1838 and subsequently
renovated and converted into an apartment community. The most
recent renovation was completed in 2001. Cannery is comprised
of one 5-story and one 6-story building which together encompass
approximately 160,000 rentable square feet of apartment rental
space and approximately 40,000 rentable square feet of retail
space. Cannery offers tenants amenities including a fitness center,
clubroom, roof deck, parking and elevators.
Cannery Lofts
Apartments
PROPERTY LOCATION
Cannery is located at the northern end of Dayton’s “Oregon District,”
a neighborhood in downtown Dayton that has numerous restaurant
and entertainment venues. Cannery is also situated within five miles
of most of Dayton’s major employers, including Wright Patterson
Air Force Base, the University of Dayton and Miami Valley Hospital.
RISK FACTORS
» No public market currently exists for
our shares of common stock, and we
have no current plans to list our shares
on an exchange.
» We set the offering price arbitrarily.
This price is unrelated to the book
or net value of our assets or to our
expected operating income.
» We have a limited operating history,
and as of June 30, 2011, our total
assets were $44.5 million, and
consisted primarily of $39.0 million
of investments, $900,000 of cash,
and $4.0 million of deferred offering
costs. We have not identified all of
the investments to acquire from the
proceeds of this offering. Consequently,
you will not have the opportunity to
evaluate all of our investments before
we make them.
» We are dependent on our advisor
and its affiliates to select investments
and conduct our operations and this
offering. Our advisor has a limited
operating history and no experience
operating a public company.
» We pay substantial fees and expenses
to our advisor, its affiliates and brokerdealers,
which payments increase the
risk that you will not earn a profit on
your investment.
» Our executive officers and some
of our directors face conflicts of
interest.
» We may lack diversification if we raise
substantially less than the maximum
offering.
» There are restrictions on the ownership
and transferability of our shares of
common stock. See “Description of
Shares – Restriction on Ownership of
Shares”, found in the prospectus.
» Our charter permits us to pay
distributions from any source, including
from offering proceeds, borrowings,
sales of assets or waivers or deferrals
of fees otherwise owed to our advisor.
To the extent these distributions
exceed our net income or net capital
gain, a greater proportion of your
distributions will generally represent
a return of capital as opposed to
current income or gain, as applicable.
Our organizational documents do not
limit the amount of distributions that
we can fund from sources other than
from cash flows from operations.
» We may change our targeted investments
without stockholder consent.
» Some of the other programs sponsored
by our sponsor, Resource Real Estate,
Inc. (“RRE”) have experienced adverse
business developments or conditions.
RESOURCE REAL ESTATE, INC.
One Commerce Square
2005 Market Street, 15th Floor
Philadelphia, PA 19103
For information call (866) 773-4120
or email Sales@ResourceREIT.com
www.ResourceREIT.com
FA4-REIT1-D 101411