----

|                                                            | Page   |
|-----------------------------------------------------------------|--------|
|                                                            |   |   |
| INDEPENDENT      AUDITORS' REPORT                               |   | 1 |
|                                                            |   |   |
| CONSOLIDATED      FINANCIAL STATEMENTS                          |   |   |
| AS      OF AND FOR THE PERIOD ENDED DECEMBER 31, 2007:          |   |
|                                                            |   |   |
| Statement      of Assets, Liabilities and Members’ Equity | 2      |
|                                                            |   |   |
| Schedule      of Investments                                    | 3      |
|                                                            |   |   |
| Statement      of Operations                                    | 4      |
|                                                            |   |   |
| Statement      of Changes in Members' Equity                    | 5      |
|                                                            |   |   |
| Statement      of Cash Flows                                    | 6      |
|                                                            |   |   |
| Notes      to Consolidated Financial Statements                 | 7-12   |

----

----

| Investment      in real estate properties, at fair value          |   |   |            |
|-------------------------------------------------------------------|--------|--------|-----------------|
| (cost      - $545,303,933)                                        |   | $      | 545,303,933     |   |
|                                                              |   |   |            |   |
| Cash      and cash equivalents                                    |   |   | 11,426,412      |   |
|                                                              |   |   |            |   |
| Restricted      cash                                              |   |   | 2,802,124       |   |
|                                                              |   |   |            |   |
| Cash      held in escrow by lenders                               |   |   | 5,155,875       |   |
|                                                              |   |   |            |   |
| Prepaid      expenses and other assets                            |   |   | 1,345,760       |   |
|                                                              |   |   |            |   |
| Tenant      security deposits                                     |   |   | 150,528         |   |
|                                                              |   |   |            |   |
| Deferred      costs (net of accumulated amortization of $151,174) |   |   |  3,728,327 |   |
|                                                              |   |   |            |   |
| Total      assets                                                 |   | $      | 569,912,959     |   |

| Mortgage      notes, bonds and credit facilities payable |   |   |              |
|----------------------------------------------------------|--------|--------|-------------------|
| (Cost      - $433,934,548)                               |   | $      | 435,621,232       |   |
|                                                     |   |   |              |   |
| Accounts      payable and accrued expenses               |   |   | 9,079,931         |   |
|                                                     |   |   |              |   |
| Prepaid      rent                                        |   |   | 439,684           |   |
|                                                     |   |   |              |   |
| Tenant      security deposits payable                    |   |   | 1,167,987         |   |
|                                                     |   |   |              |   |
| Deferred      revenue                                    |   |   | 195,018           |   |
|                                                     |   |   |              |   |
| Due      to Manager                                      |   |   | 210,399           |   |
|                                                     |   |   |              |   |
| Total      liabilities                                   |   |   | 446,714,251       |   |
|                                                     |   |   |              |   |
|                                                     |   |   |              |   |
| Members’      equity                               |   |   |  123,198,708 |   |
|                                                     |   |   |              |   |
| Total      liabilities and members’ equity         |   | $      | 569,912,959       |   |

----

| Arbor      Hill                   | Antinoch,      TN      |   |           | 548    |   |   | $         | 32,320,781  |   |   | $         | 32,427,120  |   |   | $         | 32,427,120  |   |
|-----------------------------------|------------------------|--------|----------------|--------|--------|--------|-----------|-------------|--------|--------|-----------|-------------|--------|--------|-----------|-------------|--------|
| Arbors      of Dublin             | Dublin,OH              |   |           | 288    |   |   |      | 16,771,849  |   |   |      | 16,889,925  |   |   |      | 16,889,925  |   |
| Bluff      Ridge                  | Jacksonville,NC        |   |           | 108    |   |   |      | 8,434,421   |   |   |      | 8,507,511   |   |   |      | 8,507,511   |   |
| Brentwood      Oaks               | Nashville,      TN     |   |           | 262    |   |   |      | 20,256,609  |   |   |      | 20,434,400  |   |   |      | 20,434,400  |   |
| Coral      Point                  | Mesa,      AZ          |   |           | 337    |   |   |      | 24,798,298  |   |   |      | 24,921,195  |   |   |      | 24,921,195  |   |
| Cornerstone      Apartments       | Independence,      MO  |   |           | 420    |   |   |      | 36,183,516  |   |   |      | 36,269,115  |   |   |      | 36,269,115  |   |
| Covey      at Fox Valley     | Aurora,      IL        |   |           | 216    |   |   |      | 23,511,386  |   |   |      | 23,801,660  |   |   |      | 23,801,660  |   |
| Elliot’s      Crossing      | Tempe,      AZ         |   |           | 247    |   |   |      | 19,638,653  |   |   |      | 19,745,595  |   |   |      | 19,745,595  |   |
| Fox      Hollow                   | High      Point, NC    |   |           | 184    |   |   |      | 7,764,467   |   |   |      | 7,855,676   |   |   |      | 7,855,676   |   |
| Greenbriar                        | Tulsa,      OK         |   |           | 120    |   |   |      | 4,289,706   |   |   |      | 4,356,164   |   |   |      | 4,356,164   |   |
| Greenhouse      Apartments        | Omaha,      NE         |   |           | 128    |   |   |      | 17,586,793  |   |   |      | 17,655,998  |   |   |      | 17,655,998  |   |
| Highland      Park Apartments     | Reynoldsburg,      OH  |   |           | 252    |   |   |      | 11,347,222  |   |   |      | 11,480,610  |   |   |      | 11,480,610  |   |
| The      Hunt                     | Oklahoma      City, OK |   |           | 216    |   |   |      | 9,597,342   |   |   |      | 9,710,390   |   |   |      | 9,710,390   |   |
| Hunts      View Apartments        | Greensboro,      NC    |   |           | 240    |   |   |      | 14,026,038  |   |   |      | 14,098,544  |   |   |      | 14,098,544  |   |
| Jackson      Park Place I         | Fresno,      CA        |   |           | 296    |   |   |      | 31,633,829  |   |   |      | 31,774,544  |   |   |      | 31,774,544  |   |
| Jackson      Park Place II        | Fresno,      CA        |   |           | 80     |   |   |      | 11,999,177  |   |   |      | 12,073,267  |   |   |      | 12,073,267  |   |
| Lakes      of Northdale           | Tampa,      FL         |   |           | 216    |   |   |      | 17,127,825  |   |   |      | 17,215,998  |   |   |      | 17,215,998  |   |
| Littlestone      at Village Green | Gallatin,      TN      |   |           | 200    |   |   |      | 14,598,998  |   |   |      | 14,666,274  |   |   |      | 14,666,274  |   |
| Misty Springs                | Daytona      Beach, FL |   |           | 128    |   |   |      | 9,131,372   |   |   |      | 9,193,000   |   |   |      | 9,193,000   |   |
| Monticello                        | Southfield,      MI    |   |           | 106    |   |   |      | 6,099,581   |   |   |      | 6,160,761   |   |   |      | 6,160,761   |   |
| Morganton      Place              | Fayetteville,      NC  |   |           | 280    |   |   |      | 18,885,703  |   |   |      | 18,996,499  |   |   |      | 18,996,499  |   |
| Oakhurst      Apartments          | Ocala,      FL         |   |           | 214    |   |   |      | 17,388,805  |   |   |      | 17,457,909  |   |   |      | 17,457,909  |   |
| Oakwell      Farms                | Hermitage,      TN     |   |           | 414    |   |   |      | 28,050,074  |   |   |      | 28,173,517  |   |   |      | 28,173,517  |   |
| Shelby Heights               | Bristol,      TN       |   |           | 100    |   |   |      | 5,344,633   |   |   |      | 5,438,856   |   |   |      | 5,438,856   |   |
| The      Park at Countryside      | Port      Orange, FL   |   |           | 120    |   |   |      | 9,243,364   |   |   |      | 9,326,142   |   |   |      | 9,326,142   |   |
| The      Ponds at Georgetown      | Ann      Arbor, MI     |   |           | 134    |   |   |      | 8,749,399   |   |   |      | 8,830,719   |   |   |      | 8,830,719   |   |
| The      Reserve at Wescott       | Summerville,      SC   |   |           | 192    |   |   |      | 16,236,884  |   |   |      | 16,305,218  |   |   |      | 16,305,218  |   |
| The      Reserve at Wescott II    | Summerville,      SC   |   |           | 96     |   |   |      | 5,999,588   |   |   |      | 8,749,069   |   |   |      | 8,749,069   |   |
| Tregaron      Oaks                | Bellvue,      NE       |   |           | 300    |   |   |      | 18,452,733  |   |   |      | 18,860,041  |   |   |      | 18,860,041  |   |
| Village      at Cliffdale         | Fayetteville,      NC  |   |           | 356    |   |   |      | 23,726,370  |   |   |      | 23,834,102  |   |   |      | 23,834,102  |   |
| Waterman’s      Crossing    | Newport      News, VA  |   |           | 260    |   |   |      | 29,897,946  |   |   |      | 30,006,130  |   |   |      | 30,006,130  |   |
| Woodberry      Apartments         | Asheville,      NC     |   |           | 168    |   |   |      | 11,899,182  |   |   |      | 11,988,540  |   |   |      | 11,988,540  |   |
|                              |                   |   |           |   |   |   |      |        |   |   |      |        |   |   |      |        |   |
| Subtotal                          |                   |   |           | 7,226  |   |   |      | 530,992,544 |   |   |      | 537,204,489 |   |   |      | 537,204,489 |   |
|                              |                   |   |           |   |   |   |      |        |   |   |      |        |   |   |      |        |   |
| Commercial:                       |                   |   |           |   |   |   |      |        |   |   |      |        |   |   |      |        |   |
|                              |                   |   |           |   |   |   |      |        |   |   |      |        |   |   |      |        |   |
| The      Exchange at Palm Bay     | Palm      Bay, FL      |   | 72,007      SF |   |   |   | 8,099,444 |        |   |   | 8,099,444 |        |   |   | 8,099,444 |        |
|                              |                   |   |           |   |   |   |      |        |   |   |      |        |   |   |      |        |   |
| Total                             |                   |   |           |   |   |   | $         | 539,091,988 |   |   | $         | 545,303,933 |   |   | $         | 545,303,933 |   |

| (1)   | Purchase      price allocation is based on fair value as determined by the Manager on      September 18, 2007 at time that APRO was  acquired. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Historical      cost equals the purchase price allocation plus capital improvements made      from the acquisition date through December 31,  2007. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | Fair      value is estimated to equal the purchase price allocation plus capital      improvements made from the acquisition date through December 31,      2007. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Base      rent                                                                  |   | $      | 16,013,289 |   |
|---------------------------------------------------------------------------------|--------|--------|------------|--------|
| Other      rental income                                                        |   |   | 1,092,062  |   |
|                                                                            |   |   |       |   |
| Total      operating revenues                                                   |   |   | 17,105,351 |   |
|                                                                            |   |   |       |   |
| OPERATING      EXPENSES:                                                        |   |   |       |   |
|                                                                            |   |   |       |   |
| Repairs      and maintenance                                                    |   |   | 1,774,943  |   |
| Payroll      and related costs                                                  |   |   | 1,691,247  |   |
| Real      property taxes                                                        |   |   | 1,625,911  |   |
| Utilities                                                                       |   |   | 963,595    |   |
| Property      management fees                                                   |   |   | 769,739    |   |
| General      and administrative                                                 |   |   | 609,836    |   |
| Insurance                                                                       |   |   | 543,025    |   |
| Advertising                                                                     |   |   | 297,998    |   |
|                                                                            |   |   |       |   |
| Total      operating expenses                                                   |   |   | 8,276,294  |   |
|                                                                            |   |   |       |   |
|                                                                            |   |   |       |   |
| INCOME      FROM OPERATIONS                                                     |   |   | 8,829,057  |   |
|                                                                            |   |   |       |   |
| OTHER      INCOME (EXPENSE):                                                    |   |   |       |   |
|                                                                            |   |   |       |   |
| Interest      on mortgage notes, bonds and credit facilities payable            |   |   | (7,868,406 | )      |
| Amortization      of deferred financing costs                                   |   |   | (151,174   | )      |
| Professional      fees                                                          |   |   | (200,000   | )      |
| Interest      income                                                            |   |   | 580,137    |   |
|                                                                            |   |   |       |   |
| INCOME      BEFORE NET UNREALIZED DEPRECIATION AND                              |   |   |       |   |
|  REALIZED      LOSS ON SALE                                                |   |   | 1,189,614  |   |
|                                                                            |   |   |       |   |
| Net      unrealized depreciation on fair value of mortgage notes and      bonds |   |   | (1,686,684 | )      |
| Net      unrealized depreciation of interest rate cap and swap      agreements  |   |   | (273,560   | )      |
| Realized      loss on sale of securities                                        |   |   | (30,662    | )      |
|                                                                            |   |   |       |   |
| NET      INVESTMENT LOSS                                                        |   | $      | (801,292   | )      |

----

| Contributions                                       |   | $      | 43,400,000 |   |   | $      | 43,400,000 |   |   | $      | 37,200,000 |   |   | $      | 124,000,000 |   |
|-----------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|--------|--------|------------|--------|--------|--------|-------------|--------|
|                                                |   |   |       |   |   |   |       |   |   |   |       |   |   |   |        |   |
| Income      before unrealized depreciation          |   |   |       |   |   |   |       |   |   |   |       |   |   |   |        |   |
|    and      realized loss on sale    |   |   | 416,365    |   |   |   | 416,365    |   |   |   | 356,884    |   |   |   | 1,189,614   |   |
|                                                |   |   |       |   |   |   |       |   |   |   |       |   |   |   |        |   |
| Net      unrealized depreciation on fair value      |   |   |       |   |   |   |       |   |   |   |       |   |   |   |        |   |
|    of      mortgage notes and bonds  |   |   | (590,339   | )      |   |   | (590,339   | )      |   |   | (506,006   | )      |   |   | (1,686,684  | )      |
|                                                |   |   |       |   |   |   |       |   |   |   |       |   |   |   |        |   |
| Net      unrealized depreciation of interest        |   |   |       |   |   |   |       |   |   |   |       |   |   |   |        |   |
|    rate      cap and swap agreements |   |   | (95,746    | )      |   |   | (95,746    | )      |   |   | (82,068    | )      |   |   | (273,560    | )      |
|                                                |   |   |       |   |   |   |       |   |   |   |       |   |   |   |        |   |
| Realized      loss on sale of securities            |   |   | (10,732    | )      |   |   | (10,732    | )      |   |   | (9,198     | )      |   |   | (30,662     | )      |
|                                                |   |   |       |   |   |   |       |   |   |   |       |   |   |   |        |   |
| Members’      equity 12/31/07                 |   | $      | 43,119,548 |   |   | $      | 43,119,548 |   |   | $      | 36,959,612 |   |   | $      | 123,198,708 |   |

----

| CASH FLOWS      FROM OPERATING ACTIVITIES:                                             |   |   |         |
|----------------------------------------------------------------------------------------|--------|--------|--------------|
|                                                                                   |   |   |         |
| Net      investment loss                                                               |   | $      | (801,292     | ) |
| Adjustments      to reconcile net investment loss to                                   |   |   |         |   |
|  net      cash provided by operating activities:                                  |   |   |         |   |
|        Net unrealized depreciation on fair value of mortgage notes and      bonds |   |   | 1,686,684    |   |
|        Net unrealized depreciation of interest rate cap and swap      agreements  |   |   | 273,560      |   |
|        Realized loss on sale of securities                                        |   |   | 30,662       |   |
|        Amortization of deferred financing costs                                   |   |   | 151,174      |   |
|        Changes in operating assets and liabilities:                               |   |   |         |   |
|          Decrease in cash held by lenders in escrow                     |   |   | 793,099      |   |
|          Increase in prepaid expenses and other assets                  |   |   | (202,388     | ) |
|          Increase in accounts payable and accrued expenses              |   |   | 2,942,050    |   |
|          Increase in due to Manager                                     |   |   | 210,399      |   |
|          Decrease in deferred revenue                                   |   |   | (8,938       | ) |
|          Decrease in prepaid rent                                       |   |   | (1,580,730   | ) |
|          Decrease in tenant security deposits payable                   |   |   | (8,242       | ) |
|                                                                                   |   |   |         |   |
| Net      cash provided by operating activities                                         |   |   | 3,486,038    |   |
|                                                                                   |   |   |         |   |
|                                                                                   |   |   |         |   |
| CASH      FLOWS FROM INVESTING ACTIVITIES:                                             |   |   |         |   |
|                                                                                   |   |   |         |   |
|                                                                                   |   |   |         |   |
| Acquisition      of real estate company, net of cash acquired                          |   |   | (275,913,108 | ) |
| Capital      additions to real estate properties                                       |   |   | (6,211,945   | ) |
| Increase      in restricted cash                                                       |   |   | (833,541     | ) |
| Proceeds      from sale of securities and redemption of GNMAs                          |   |   | 18,185,793   |   |
|                                                                                   |   |   |         |   |
| Net      cash used in investing activities                                             |   |   | (264,772,801 | ) |
|                                                                                   |   |   |         |   |
|                                                                                   |   |   |         |   |
| CASH      FLOWS FROM FINANCING ACTIVITIES:                                             |   |   |         |   |
|                                                                                   |   |   |         |   |
| Payments      of mortgage notes, bonds and credit facilities                           |   |   | (63,527,065  | ) |
| Proceeds      from mortgage notes, bonds and credit facilities                         |   |   | 216,119,741  |   |
| Capital      contributions                                                             |   |   | 124,000,000  |   |
| Payment      of deferred financing costs                                               |   |   | (3,879,501   | ) |
|                                                                                   |   |   |         |   |
| Net      cash provided by financing activities                                         |   |   | 272,713,175  |   |
|                                                                                   |   |   |         |   |
| NET      INCREASE IN CASH AND CASH EQUIVALENTS                                         |   |   | 11,426,412   |   |
|                                                                                   |   |   |         |   |
|                                                                                   |   |   |         |   |
| CASH      AND CASH EQUIVALENTS, beginning of period                                    |   |   | 0            |   |
|                                                                                   |   |   |         |   |
|                                                                                   |   |   |         |   |
| CASH      AND CASH EQUIVALENTS, end of period                                          |   | $      | 11,426,412   |   |
|                                                                                   |   |   |         |   |
|                                                                                   |   |   |         |   |
| SUPPLEMENTAL      DISCLOSURE OF CASH FLOW INFORMATION                                  |   |   |         |   |
|                                                                                   |   |   |         |   |
| Cash      paid during the period for interest                                          |   | $      | 6,186,279    |   |

----

| 1. | ORGANIZATION |
|----|--------------|

| 2. | SUMMARY      OF SIGNIFICANT ACCOUNTING POLICIES |
|----|-------------------------------------------------|

| Investments      in real estate, at fair value           |   | $      | 539,091,988      |   |
|----------------------------------------------------------|--------|--------|------------------|--------|
| Cash                                                     |   |   | 14,931,147       |   |
| Short      term investments and marketable securities    |   |   | 18,225,202       |   |
| Other      current assets                                |   |   | 9,677,428        |   |
| Mortgage      notes, bonds and credit facilities payable |   |   | (281,341,872     | )      |
| Tenant      security deposits and other liabilities      |   |   |  (9,739,638 | )      |
|                                                     |   |   |             |   |
| Total      cost                                          |   | $      | 290,844,255      |   |

----

|   | As      part of the APRO acquisition, the Company acquired marketable securities      with a market value of $2,666,919 on the date of      acquisition.  In October 2007, these securities were sold for      $2,636,257, resulting in a realized loss of $30,662.   In      addition, in October 2007 the Company fully settled $4,800,000 of      repurchase agreements that the Company acquired as part of the APRO      acquisition. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | MORTGAGE      NOTES, BONDS AND CREDIT FACILITIESPAYABLE |
|----|---------------------------------------------------------|

| Mortgage      Notes Payable:                                                                   |   |   |   |   |     |   |   |    |   |   |
|------------------------------------------------------------------------------------------------|--------|--------|--------|--------|----------|--------|--------|---------|--------|--------|
|                                                                                           |   |   |   |   |     |   |   |    |   |   |
| Fox      Hollow                                                                                |   |   | 6.91   | %      | 03/01/11 |   | $      | 41,072  |   |   | $ | 5,748,740 |   |
| Highland      Park                                                                             |   |   | 4.69   | %      | 09/01/15 |   |   | 36,263  |   |   |   | 6,520,023 |   |
| Hunt’s      View Apartments                                                              |   |   | 5.83   | %      | 01/01/12 |   |   | 42,384  |   |   |   | 6,614,009 |   |
| Misty Springs                                                                             |   |   | 5.37   | %      | 01/01/13 |   |   | 31,832  |   |   |   | 7,120,000 |   |
| Oakwell      Farms                                                                             |   |   | 6.94   | %      | 05/01/09 |   |   | 85,757  |   |   |   | 11,464,398 |   |
| The      Reserve at Wescott Platation                                                          |   |   | 5.75   | %      | 11/01/44 |   |   | 65,635  |   |   |   | 12,049,734 |   |
| Tregaron      Oaks                                                                             |   |   | 5.12   | %      | 09/01/15 |   |   | 53,500  |   |   |   | 12,370,000 |   |
| Waterman’s      Crossing                                                                 |   |   | 5.52   | %      | 11/01/12 |   |   | 65,867  |   |   |   | 10,739,818 |   |
| Jackson      Park Place I                                                                      |   |   | 5.23   | %      | 12/01/12 |   |   | 107,438 |   |   |   | 19,500,000 |   |
| Oakhurst      Apartments                                                                       |   |   | 5.37   | %      | 01/01/13 |   |   | 52,577  |   |   |   | 11,760,000 |   |
|                                                                                           |   |   |   |   |     |   |   |    |   |   |   |   |   |
| Total      Mortgage Notes Payable                                                              |   |   |   |   |     |   |   |    |   |   |   |   |   |
|                                                                                           |   |   |   |   |     |   |   |    |   |   |   | 103,886,722 |   |
|                                                                                           |   |   |   |   |     |   |   |    |   |   |   |   |   |
| Bonds      Payable:                                                                            |   |   |   |   |     |   |   |    |   |   |   |   |   |
|                                                                                           |   |   |   |   |     |   |   |    |   |   |   |   |   |
| Arbor      Hill (1) (4)                                                                        |   |   | 3.68   | %      | 12/01/25 |   |   | 79,002  |   |   |   | 26,150,000 |   |
| Brentwood      Oaks (4)                                                                        |   |   | 3.53   | %      | 07/15/31 |   |   | 33,939  |   |   |   | 11,320,000 |   |
| Coral      Point (2)                                                                           |   |   | 4.95   | %      | 03/01/28 |   |   | 54,214  |   |   |   | 13,090,000 |   |
| Covey      at Fox Valley (5)                                                              |   |   | 3.55   | %      | 10/15/27 |   |   | 34,987  |   |   |   | 12,410,000 |   |
| Elliots      Crossing (6)                                                                      |   |   | 5.38   | %      | 04/01/30 |   |   | 37,177  |   |   |   | 8,300,000 |   |
| The      Exchange at Palm Bay                                                                  |   |   | 6.75   | %      | 11/01/10 |   |   | 37,517  |   |   |   | 4,830,996 |   |
| Greenbriar                                                                                     |   |   | 7.50   | %      | 07/01/29 |   |   | 25,220  |   |   |   | 3,980,000 |   |
| The      Hunt                                                                                  |   |   | 7.25   | %      | 07/01/29 |   |   | 42,450  |   |   |   | 6,930,000 |   |
| Lakes      of Northdale (3) (5)                                                                |   |   | 3.52   | %      | 05/15/12 |   |   | 28,731  |   |   |   | 9,610,000 |   |
|                                                                                           |   |   |   |   |     |   |   |    |   |   |   |   |   |
| Total      Bonds Payable                                                                       |   |   |   |   |     |   |   |    |   |   |   | 96,620,996 |   |
|                                                                                           |   |   |   |   |     |   |   |    |   |   |   |   |   |
| Subtotal                                                                                       |   |   |   |   |     |   |   |    |   |   |   | 200,507,718 |   |
|                                                                                           |   |   |   |   |     |   |   |    |   |   |   |   |   |
| Secured      Credit Facility (7)                                                               |   |   |   |   |     |   |   |    |   |   |   | 84,718,000 |   |
| Construction      Credit Facility for The Reserve at Wescott Phase II (8)                      |   |   |   |   |     |   |   |    |   |   |   | 4,667,137 |   |
|                                                                                           |   |   |   |   |     |   |   |    |   |   |   |   |   |
|                                                                                           |   |   |   |   |     |   |   |    |   |   |   | 289,892,855 |   |
| Plus:      Net unrealized depreciation on Mortgage Notes, Bonds and                            |   |   |   |   |     |   |   |    |   |   |   |   |   |
|           Credit      facilities payable (9) |   |   |   |   |     |   |   |    |   |   |   | 1,228,377 |   |
|                                                                                           |   |   |   |   |     |   |   |    |   |   |   |   |   |
| Mortgage      Notes, Bonds and Credit Facilities Payable, at Fair Value                        |   |   |   |   |     |   |   |    |   |   |   | 291,121,232 |   |
|                                                                                           |   |   |   |   |     |   |   |    |   |   |   |   |   |
| Unsecured      Credit Facility (10)                                                            |   |   |   |   |     |   |   |    |   |   |   | 144,500,000 |   |
|                                                                                           |   |   |   |   |     |   |   |    |   |   |   |   |   |
| Total      Mortgage                                                                            |   |   |   |   |     |   |   |    |   |   | $ | 435,621,232 |   |
|                                                                                           |   |   |   |   |     |   |   |    |   |   |   |   |   |

----

| (1)   | The      bond is also collateralized with Littlestone at Village    Green. |
|-----------------|----------------------------------------------------------------------------|

| (2)   | The      bond is also collateralized with Jackson Park Place Phase    II. |
|-----------------|---------------------------------------------------------------------------|

| (3)   | The      bond is also collateralized with BluffRidge. |
|-----------------|-------------------------------------------------------|

| (4)   | The      interest rate is based on a weekly variable rate, which is determined by a      highly rated bond composite variable rate.  The rates are capped      at 4.50% and 6.22% through December 2009 and September 2011,      respectively. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5)   | The      interest rate is based on a weekly variable rate, which is determined by a      highly rated bond composite variablerate. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------|

| (6)   | The      rate is fixed at 5.38%  through  June,      2011.  Thereafter the rate is based on the SIFMA Municipal Swap      Index (formerly the BMA Municipal SwapIndex). |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (7)   | The      secured credit facility (the “Facility”) in the amount of $84,718,000 is      collateralized by Arbors of Dublin, Cornerstone, Morganton Place, The      Greenhouse, Village at Cliffdale and Woodberry.  The Facility      provides for an interest only monthly payment which is based upon a fixed      rate through 2012, after which time it shall include principal to amortize      the outstanding balance over a 30 year period and each draw matures on      dates ranging from October, 2016 to October, 2017.  The interest      rates for each draw vary from 5.44% to 5.68%.   The      outstanding amount of the Facility is $84,718,000 at December 31,      2007.  In addition, the Company is fully compliant with certain      financial ratios which must be maintained during the life of the      Facility.   The Facility may be prepaid with      penalty. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (8)   | In      connection with the construction of The Reserve at Wescott Phase II, APRO      entered into a construction credit facility with a bank, in the amount of      $6,314,000 with a maturity date of April 11, 2010. The loan provides      interest of LIBOR plus 1.65%. The outstanding balance of the loan is      $4,667,137 at December 31, 2007. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (9)   | This      amount is the net of the net unrealized depreciation of the mortgages,      bonds and credit facilities for the period of inception to December 31,      2007 and the mark to market adjustment of debt at the time of the APRO      acquisition. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (10)   | In      connection with the acquisition of APRO, the Company entered into an      unsecured credit facility (the “Loan”) with a bank, in the amount of      $175,000,000 that matures on September 18, 2008, and provides for two      extensions to September 18, 2009.  The loan provides for monthly      payments of interest only asfollows: |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2008       |   | $      | 145,760,309 |   |
|------------|--------|--------|-------------|--------|
| 2009       |   |   | 12,307,908  |   |
| 2010       |   |   | 10,232,857  |   |
| 2011       |   |   | 6,622,253   |   |
| 2012       |   |   | 34,875,318  |   |
| Thereafter |   |   | 224,594,210 |   |
|       |   | $      | 434,392,855 |   |

| Variable      to fixed swap | 01/15/12 |   | $      | 11,320,000  |   |   |   | 3.44   | %      |   |   | 3.44   | %      |   | $      | (239,534 | )      |
|-----------------------------|----------|--------|--------|-------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|----------|--------|
| Variable      to fixed swap | 12/15/16 |   |   | 12,410,000  |   |   |   | 3.44   | %      |   |   | 3.69   | %      |   |   | (342,648 | )      |
| Variable      to fixed swap | 06/25/09 |   |   | 10,910,000  |   |   |   | 3.44   | %      |   |   | 3.30   | %      |   |   | (91,444  | )      |
| Variable      to fixed swap | 02/03/09 |   |   | 8,100,000   |   |   |   | 3.44   | %      |   |   | 2.82   | %      |   |   | 7,302    |   |
| Fixed      to variable swap | 07/13/09 |   |   | 6,930,000   |   |   |   | 7.25   | %      |   |   | 4.08   | %      |   |   | 55,044   |   |
| Fixed      to variable swap | 07/13/09 |   |   | 3,980,000   |   |   |   | 7.50   | %      |   |   | 4.08   | %      |   |   | (159,726 | )      |
| Fixed      to variable swap | 01/22/09 |   |   | 8,300,000   |   |   |   | 5.36   | %      |   |   | 4.08   | %      |   |   | 10,201   |   |
| Libor      Cap              | 12/22/09 |   |   | 13,400,000  |   |   |   | 4.50   | %      |   |   | n/a    |   |   |   | 1,573    |   |
| Libor      Cap              | 12/22/09 |   |   | 12,750,000  |   |   |   | 4.50   | %      |   |   | n/a    |   |   |   | 1,497    |   |
| Libor      Cap              | 09/15/11 |   |   | 11,320,000  |   |   |   | 6.22   | %      |   |   | n/a    |   |   |   | 2,850    |   |
| Libor      Cap              | 09/09/12 |   |   | 9,610,000   |   |   |   | 7.30   | %      |   |   | n/a    |   |   |   | 2,320    |   |
|                        |     |   |   |        |   |   |   |   |   |   |   |   |   |   |   |     |   |
|                        |     |   | $      | 109,030,000 |   |   |   |   |   |   |   |   |   |   | $      | (752,565 | )      |

----

| (1)   | Average      net assets are calculated based upon the average of the beginning and      ending net assets of the quarter ending December 31,  2007. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Net      investment income includes income less all expenses other than any      realized and unrealized gains andloss. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------|

| (3)   | Internal      rate of return calculated based upon monthly contributions and net assets      at December 31, 2007 adjusted for unrealized appreciation of mortgage      notes, bonds and credit facilitiespayable. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|