----

----

|                                        |
|----------------------------------------|
|                                        |  |  |  |  |  |  |  |  |  |  |  |  |  |
| University Village - Greensboro, LLC   |
|                                   |   |   |   |   |   |   |   |   |   |
| Balance Sheets                         |
|                                   |   |   |   |   |   |   |   |   |   |
| As of December 31,                     |
|                                   |   |   |   |   |   |   |   |   |   |
|                                   |   |   |   |   |   |   | 2013 |   | 2012 |
|                                   |   |   |   |   |   |   | (unaudited) |   |   |
| Assets:                                |   |   |   |   |   |   |   |   |
|                                   | Collegiate housing property, net |   |   |  | $20,834,657 |  |   |  | $21,459,886 |  |
|                                   | Cash |   |   |   |   |   | 211,978 |  |   | 184,580 |  |
|                                   | Restricted cash |   |   |   | 221,201 |  |   | 186,457 |  |
|                                   | Student contracts receivable, net |   |   | 32,520 |  |   | 22,815 |  |
|                                   | Other |   |   |   |   |   | 274,739 |  |   | 289,123 |  |
|                                   |   |   |   |   |   |   |   |   |   |
| Total assets                           |   |   |   |   |  | $21,575,095 |  |   |  | $22,142,861 |  |
|                                   |   |   |   |   |   |   |   |   |   |
|                                   |   |   |   |   |   |   |   |   |   |
| Liabilities                            |   |   |   |   |   |   |   |
|                                   | Mortgage |   |   |   |   |  | $23,970,607 |  |   |  | $24,279,778 |  |
|                                   | Note payable |   |   |   |   | 50,000 |  |   | — |  |
|                                   | Accounts payable and other accrued expenses | 244,896 |  |   | 186,235 |  |
|                                   | Deferred revenue |   |   |   | 252,780 |  |   | 277,343 |  |
|                                   | Related party payable |   |   |   | 14,863 |  |   | 17,983 |  |
|                                   |   |   |   |   |   |   |   |   |   |
| Total liabilities                      |   |   |   |   | 24,533,146 |  |   | 24,761,339 |  |
|                                   |   |   |   |   |   |   |   |   |   |
| Members' deficit                       |   |   |   | (2,958,051) |  |   | (2,618,478) |  |
|                                   |   |   |   |   |   |   |   |   |   |
| Total liabilities and members' deficit |   |  | $21,575,095 |  |   |  | $22,142,861 |  |
|                                   |   |   |   |   |   |   |   |   |   |

----

|                                                 |
|-------------------------------------------------|
|                                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| University Village - Greensboro, LLC            |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Statements of Operations and Comprehensive Loss |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Years ended December 31,                        |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |
|                                            |   |   |   |   |   |   | 2013 |   | 2012 |   | 2011 |
|                                            |   |   |   |   |   |   | (unaudited) |   |   |   | (unaudited) |
| Revenues                                        |   |   |   |   |   |   |   |   |   |   |
|                                            | Collegiate housing leasing revenue |   |  | $3,598,087 |  |   |  | $3,438,625 |  |   | $ | 3,477,486 |   |
|                                            | Other revenues |   |   |   |   | 80,648 |  |   | 84,481 |  |   | 107,404 |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |
| Total revenues                                  |   |   |   |   | 3,678,735 |  |   | 3,523,106 |  |   | 3,584,890 |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |
| Expenses                                        |   |   |   |   |   |   |   |   |   |   |
|                                            | General and administrative |   |   | 1,737,388 |  |   | 1,587,219 |  |   | 1,551,624 |   |
|                                            | Depreciation |   |   |   |   | 783,286 |  |   | 871,958 |  |   | 925,815 |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |
| Total operating expenses                        |   |   | 2,520,674 |  |   | 2,459,177 |  |   | 2,477,439 |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |
| Operating income                                |   |   |   |   | 1,158,061 |  |   | 1,063,929 |  |   | 1,107,451 |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |
| Nonoperating expenses                           |   |   |   |   |   |   |   |   |
|                                            | Interest |   |   |   |   | 1,561,962 |  |   | 1,580,485 |  |   | 1,578,356 |   |
|                                            | Amortization of deferred financing    costs |   | 23,703 |  |   | 23,703 |  |   | 23,703 |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |
| Total nonoperating expenses                     |   |   | 1,585,665 |  |   | 1,604,188 |  |   | 1,602,059 |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                        |   |   |   |   | (427,604) |  |   | (540,259) |  |   | (494,608) |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |
| Other comprehensive income                      |   |   |   |   |   |   |   |
|                                            | Amortization of swap loss |   |   | 188,031 |  |   | 188,031 |  |   | 188,031 |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive loss                              |   |   | $(239,573) |   | $(352,228) |   | $(306,577) |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |

----

|                                           |
|-------------------------------------------|
|                                           |  |  |  |  |  |  |  |  |  |  |
| University Village - Greensboro, LLC      |
|                                      |   |   |   |   |   |   |   |   |
| Statements of Changes in Members' Deficit |
|                                      |   |   |   |   |   |   |   |   |
| Years ended December 31,                  |
|                                      |   |   |   |   |   |   |   |   |
|                                      |   |   |   | 2013 |   | 2012 |   | 2011 |
|                                      |   |   |   | (unaudited) |   |   |   | (unaudited) |
|                                      |   |   |   |   |   |   |   |   |
| Deficit, January 1                        |   | $(2,618,478) |   | $(1,666,250) |   | $(634,673) |
|                                      |   |   |   |   |   |   |   |   |
|                                      | Contributions |   | — |  |   | — |  |   | 25,000 |
|                                      |   |   |   |   |   |   |   |   |
|                                      | Distributions |   | (100,000) |  |   | (600,000) |  |   | (750,000) |
|                                      |   |   |   |   |   |   |   |   |
|                                      | Amortization of swap loss | 188,031 |  |   | 188,031 |  |   | 188,031 |
|                                      |   |   |   |   |   |   |   |   |
|                                      | Net loss |   | (427,604) |  |   | (540,259) |  |   | (494,608) |
|                                      |   |   |   |   |   |   |   |   |
| Deficit, December 31                      |   | $(2,958,051) |   | $(2,618,478) |   | $(1,666,250) |
|                                      |   |   |   |   |   |   |   |   |

----

|                                                    |
|----------------------------------------------------|
|                                                    |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| University Village - Greensboro, LLC               |
|                                               |   |   |   |   |   |   |   |   |   |   |   |
| Statements of Cash Flows                           |
|                                               |   |   |   |   |   |   |   |   |   |   |   |
| Years ended December 31,                           |
|                                               |   |   |   |   |   |   |   |   |   |   |   |
|                                               |   |   |   |   |   |   | 2013 |   | 2012 |   | 2011 |
|                                               |   |   |   |   |   |   | (unaudited) |   |   |   | (unaudited) |
| Operating Activities:                              |   |   |   |   |   |   |
|                                               | Net loss |   | $(427,604) |   | $(540,259) |   | $(494,608) |
|                                               | Adjustments to reconcile net loss to net cash |   |   |   |   |   |
|                                               |   | provided by operating activities: |   |   |   |   |   |
|                                               |   |   | Depreciation |   | 783,286 |  |   | 871,958 |  |   | 925,815 |  |
|                                               |   |   | Amortization of deferred financing costs | 23,703 |  |   | 23,703 |  |   | 23,703 |  |
|                                               |   |   | Amortization of swap loss | 188,031 |  |   | 188,031 |  |   | 188,031 |  |
|                                               | Change in operating assets and liabilities: |   |   |   |   |   |
|                                               |   |   | Student contracts receivable | (9,705) |  |   | (11,828) |  |   | 4,510 |  |
|                                               |   |   | Other assets |   | (9,319) |  |   | (31,809) |  |   | 729 |  |
|                                               |   |   | Related party payable | (3,120) |  |   | (7,200) |  |   | 4,116 |  |
|                                               |   |   | Accounts payable and other accrued expenses | 58,661 |  |   | (27,791) |  |   | 16,927 |  |
|                                               |   |   | Deferred revenue |   | (24,563) |  |   | 9,898 |  |   | (90,688) |  |
|                                               |   |   | Net cash provided by operating activities | 579,370 |  |   | 474,703 |  |   | 578,535 |  |
|                                               |   |   |   |   |   |   |   |   |   |   |   |
| Investing Activities:                              |   |   |   |   |   |   |
|                                               | Change in restricted cash |   | (34,744) |  |   | 21,538 |  |   | (92,372) |  |
|                                               | Purchase of furniture and fixtures | (158,057) |  |   | (107,663) |  |   | (258,847) |  |
|                                               |   |   | Net cash used in investing activities | (192,801) |  |   | (86,125) |  |   | (351,219) |  |
|                                               |   |   |   |   |   |   |   |   |
| Financing Activities:                              |   |   |   |   |   |   |
|                                               | Borrowings under note payable | 150,000 |  |   | — |  |   | — |  |
|                                               | Payment of mortgage and note payable | (409,171) |  |   | (120,222) |  |   | — |  |
|                                               | Contributions |   |   | — |  |   | — |  |   | 25,000 |  |
|                                               | Distributions |   |   | (100,000) |  |   | (600,000) |  |   | (750,000) |  |
|                                               |   |   | Net cash used in financing activities | (359,171) |  |   | (720,222) |  |   | (725,000) |  |
| Net increase (decrease) in cash                    |   | 27,398 |  |   | (331,644) |  |   | (497,684) |  |
| Cash, beginning of period                          |   | 184,580 |  |   | 516,224 |  |   | 1,013,908 |  |
| Cash, end of period                                |   |  | $211,978 |  |   |  | $184,580 |  |   |  | $516,224 |  |
|                                               |   |   |   |   |   |   |   |   |   |   |   |
| Supplemental disclosures of cash flow information: |   |   |   |   |   |
|                                               | Interest paid |   |   |  | $1,375,204 |  |   |  | $1,393,034 |  |   |  | $1,390,325 |  |

----

----

----

|                                   |
|-----------------------------------|
|                                   |  |  |  |  |  |  |  |  |
|                              |   | 2013 |   | 2012 |
| Land                              |   | $ | 3,736,707 |  |   | $ | 3,736,707 |  |
| Land improvements                 |   | 1,620,431 |  |   | 1,620,431 |  |
| Buildings and improvements        |   | 19,489,104 |  |   | 19,410,812 |  |
| Furniture, fixtures and equipment |   | 1,691,567 |  |   | 1,611,803 |  |
|                              |   | 26,537,809 |  |   | 26,379,753 |  |
| Accumulated depreciation          |   | (5,703,152 | ) |   | (4,919,867 | ) |
| Collegiate housing property       |   | $ | 20,834,657 |  |   | $ | 21,459,886 |  |
|                              |   |   |   |   |

----

|            |
|------------|
|            |  |  |  |  |
| 2014       |   | $ | 327,255 |  |
| 2015       |   | 346,397 |  |
| 2016       |   | 362,872 |  |
| 2017       |   | 387,884 |  |
| 2018       |   | 410,572 |  |
| Thereafter |   | 22,135,627 |  |
|       |   | $ | 23,970,607 |  |
|       |   |   |

----