Multifamily Deed of Trust



 EXHIBIT 10.4 
 After recording mail to: 
 PNC Bank, National Association 

26901 Agoura Rd., Suite 200 
 Calabasas Hills,
California 91301 
 PNC Loan No. 310230446 
 Fannie Mae No. 866765 
 MULTIFAMILY DEED OF TRUST, 

ASSIGNMENT OF LEASES AND RENTS, 
 SECURITY AGREEMENT AND 
 FIXTURE FILING 

This MULTIFAMILY DEED OF TRUST, ASSIGNMENT OF LEASES AND RENTS, SECURITY AGREEMENT AND FIXTURE FILING (as amended, restated, replaced,
supplemented, or otherwise modified from time to time, the “Security Instrument”) dated as of December 30, 2011, is executed by SIR EBT LOFTS, LLC, a limited liability company organized and existing under the laws of Delaware,
as grantor (“Borrower”), to STEVEN M. LEIGH, as trustee (“Trustee”), for the benefit of PNC BANK, NATIONAL ASSOCIATION, a national banking association, as beneficiary (“Lender”). 

Borrower, in consideration of (i) the loan in the original principal amount of $5,590,000.00 (the “Mortgage Loan”)
evidenced by that certain Multifamily Note dated as of the date of this Security Instrument, executed by Borrower and made payable to the order of Lender (as amended, restated, replaced, supplemented, or otherwise modified from time to time, the
“Note”), (ii) that certain Multifamily Loan and Security Agreement dated as of the date of this Security Instrument, executed by and between Borrower and Lender (as amended, restated, replaced, supplemented or otherwise
modified from time to time, the “Loan Agreement”), and (iii) the trust created by this Security Instrument, and to secure to Lender the repayment of the Indebtedness (as defined in this Security Instrument), and all renewals,
extensions and modifications thereof, and the performance of the covenants and agreements of Borrower contained in the Loan Documents (as defined in the Loan Agreement), excluding the Environmental Indemnity Agreement (as defined in this Security
Instrument), irrevocably and unconditionally mortgages, grants, warrants, conveys, bargains, sells, and assigns to Trustee, in trust, for benefit of Lender, with power of sale and right of entry and possession, the Mortgaged Property (as defined in
this Security Instrument), including the real property located in Jackson County, State of Missouri, and described in Exhibit A attached to this Security Instrument and incorporated by reference (the “Land”), to have and to
hold such Mortgaged Property unto Trustee and Trustee’s successors and assigns, forever; Borrower hereby releasing, relinquishing and waiving, to the fullest extent allowed by law, all rights and benefits, if any, under and by virtue of the
homestead exemption laws of the Property Jurisdiction (as defined in this Security Instrument), if applicable. 

  

					
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 Borrower represents and warrants that Borrower is lawfully seized of the Mortgaged Property
and has the right, power and authority to mortgage, grant, warrant, convey, bargain, sell, and assign the Mortgaged Property, and that the Mortgaged Property is not encumbered by any Lien (as defined in this Security Instrument) other than Permitted
Encumbrances (as defined in this Security Instrument). Borrower covenants that Borrower will warrant and defend the title to the Mortgaged Property against all claims and demands other than Permitted Encumbrances. 

Borrower, and by their acceptance hereof, each of Trustee and Lender covenants and agrees as follows: 

1. Defined Terms. 

Capitalized terms used and not specifically defined herein have the meanings given to such terms in the Loan Agreement. All terms used and
not specifically defined herein, but which are otherwise defined by the UCC, shall have the meanings assigned to them by the UCC. The following terms, when used in this Security Instrument, shall have the following meanings: 

“Condemnation Action” means any action or proceeding, however characterized or named, relating to any condemnation or other taking, or
conveyance in lieu thereof, of all or any part of the Mortgaged Property, whether direct or indirect. 
 “Enforcement Costs”
means all expenses and costs, including reasonable attorneys’ fees and expenses, fees and out-of-pocket expenses of expert witnesses and costs of investigation, incurred by Lender as a result of any Event of Default under the Loan Agreement or
in connection with efforts to collect any amount due under the Loan Documents, or to enforce the provisions of the Loan Agreement or any of the other Loan Documents, including those incurred in post-judgment collection efforts and in any bankruptcy
or insolvency proceeding (including any action for relief from the automatic stay of any bankruptcy proceeding or Foreclosure Event) or judicial or non-judicial foreclosure proceeding, to the extent permitted by law. 

“Environmental Indemnity Agreement” means that certain Environmental Indemnity Agreement dated as of the date of this Security
Instrument, executed by Borrower to and for the benefit of Lender, as the same may be amended, restated, replaced, supplemented, or otherwise modified from time to time. 
 “Environmental Laws” has the meaning set forth in the Environmental Indemnity Agreement. 
 “Event of Default” has the meaning set forth in the Loan Agreement. 

“Fixtures” means all Goods that are so attached or affixed to the Land or the Improvements as to constitute a fixture under the laws of
the Property Jurisdiction. 

  

					
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 “Goods” means all goods which are used now or in the future in connection with the
ownership, management, or operation of the Land or the Improvements or are located on the Land or in the Improvements, including inventory; furniture; furnishings; machinery, equipment, engines, boilers, incinerators, and installed building
materials; systems and equipment for the purpose of supplying or distributing heating, cooling, electricity, gas, water, air, or light; antennas, cable, wiring, and conduits used in connection with radio, television, security, fire prevention, or
fire detection, or otherwise used to carry electronic signals; telephone systems and equipment; elevators and related machinery and equipment; fire detection, prevention and extinguishing systems and apparatus; security and access control systems
and apparatus; plumbing systems; water heaters, ranges, stoves, microwave ovens, refrigerators, dishwashers, garbage disposers, washers, dryers, and other appliances; light fixtures, awnings, storm windows, and storm doors; pictures, screens,
blinds, shades, curtains, and curtain rods; mirrors, cabinets, paneling, rugs, and floor and wall coverings; fences, trees, and plants; swimming pools; exercise equipment; supplies; tools; books and records (whether in written or electronic form);
websites, URLs, blogs, and social network pages; computer equipment (hardware and software); and other tangible personal property which is used now or in the future in connection with the ownership, management, or operation of the Land or the
Improvements or are located on the Land or in the Improvements. 
 “Imposition Deposits” means deposits in an amount sufficient
to accumulate with Lender the entire sum required to pay the Impositions when due. 
 “Impositions” means 

(a) any water and sewer charges which, if not paid, may result in a lien on all or any part of the Mortgaged Property; 

(b) the premiums for fire and other casualty insurance, liability insurance, rent loss insurance and such other insurance as Lender may
require under the Loan Agreement; 
 (c) Taxes; and 
 (d) amounts for other charges and expenses which Lender at any time reasonably deems necessary to protect the Mortgaged Property, to prevent the imposition of liens on the Mortgaged Property, or otherwise
to protect Lender’s interests, all as reasonably determined from time to time by Lender. 
 “Improvements” means the
buildings, structures, improvements, and alterations now constructed or at any time in the future constructed or placed upon the Land, including any future replacements, facilities, and additions and other construction on the Land. 

  

					
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 “Indebtedness” means the principal of, interest on, and all other amounts due at any time
under the Note, the Loan Agreement, this Security Instrument or any other Loan Document (other than the Environmental Indemnity Agreement and Guaranty), including Prepayment Premiums, late charges, default interest, and accrued interest as provided
in the Loan Agreement and this Security Instrument, advances, costs and expenses to perform the obligations of Borrower or to protect the Mortgaged Property or the security of this Security Instrument, all other monetary obligations of Borrower
under the Loan Documents (other than the Environmental Indemnity Agreement), including amounts due as a result of any indemnification obligations, and any Enforcement Costs. 
 “Land” means the real property described in Exhibit A. 

“Leases” means all present and future leases, subleases, licenses, concessions or grants or other possessory interests now or hereafter
in force, whether oral or written, covering or affecting the Mortgaged Property, or any portion of the Mortgaged Property (including proprietary leases or occupancy agreements if Borrower is a cooperative housing corporation), and all modifications,
extensions or renewals thereof. 
 “Lien” means any claim or charge against property for payment of a debt or an amount
owed for services rendered, including any mortgage, deed of trust, deed to secure debt, security interest, tax lien, any materialman’s or mechanic’s lien, or any lien of a Governmental Authority, including any lien in connection with the
payment of utilities, or any other encumbrance. 
 “Mortgaged Property” means all of Borrower’s present and
hereafter acquired right, title and interest in and to all of the following: 
 (a) the Land; 

(b) the Improvements; 
 (c) the Personalty; 
 (d) current and future rights, including air rights,
development rights, zoning rights and other similar rights or interests, easements, tenements, rights-of-way, strips and gores of land, streets, alleys, roads, sewer rights, waters, watercourses, and appurtenances related to or benefitting the Land
or the Improvements, or both, and all rights-of-way, streets, alleys and roads which may have been or may in the future be vacated; 
 (e) insurance policies relating to the Mortgaged Property (and any unearned premiums) and all proceeds paid or to be paid by any insurer of the Land, the Improvements, the Personalty, or any other part of
the Mortgaged Property, whether or not Borrower obtained the insurance pursuant to Lender’s requirements; 
 (f) awards,
payments and other compensation made or to be made by any municipal, state or federal authority with respect to the Land, the Improvements, the Personalty, or any other part of the Mortgaged Property, including any awards or settlements resulting
from 

  

					
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(1) Condemnation Actions, (2) any damage to the Mortgaged Property caused by governmental action that does not result in a Condemnation Action, or (3) the total or partial taking
of the Land, the Improvements, the Personalty, or any other part of the Mortgaged Property under the power of eminent domain or otherwise and including any conveyance in lieu thereof; 

(g) contracts, options and other agreements for the sale of the Land, the Improvements, the Personalty, or any other part of the Mortgaged
Property entered into by Borrower now or in the future, including cash or securities deposited to secure performance by parties of their obligations; 
 (h) Leases and Lease guaranties, letters of credit and any other supporting obligation for any of the Leases given in connection with any of the Leases, and all Rents; 

(i) earnings, royalties, accounts receivable, issues and profits from the Land, the Improvements or any other part of the Mortgaged
Property, and all undisbursed proceeds of the Mortgage Loan and, if Borrower is a cooperative housing corporation, maintenance charges or assessments payable by shareholders or residents; 

(j) Imposition Deposits; 
 (k) refunds or rebates of Impositions by any municipal, state or federal authority or insurance company (other than refunds applicable to periods before the real property tax year in which this Security
Instrument is dated); 
 (l) tenant security deposits; 
 (m) names under or by which any of the above Mortgaged Property may be operated or known, and all trademarks, trade names, and goodwill relating to any of the Mortgaged Property; 

(n) Collateral Accounts and all Collateral Account Funds; 
 (o) products, and all cash and non-cash proceeds from the conversion, voluntary or involuntary, of any of the above into cash or liquidated claims, and the right to collect such proceeds; and 

(p) all of Borrower’s right, title and interest in the oil, gas, minerals, mineral interests, royalties, overriding royalties,
production payments, net profit interests and other interests and estates in, under and on the Mortgaged Property and other oil, gas and mineral interests with which any of the foregoing interests or estates are pooled or unitized. 

“Permitted Encumbrance” means only the easements or restrictions listed in a schedule of exceptions to coverage in the Title Policy and
Taxes for the current tax year that are not yet due and payable. 

  

					
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 “Personalty” means all Goods, accounts, choses of action, chattel paper, documents, general
intangibles (including Software), payment intangibles, instruments, investment property, letter of credit rights, supporting obligations, computer information, source codes, object codes, records and data, all telephone numbers or listings, claims
(including claims for indemnity or breach of warranty), deposit accounts and other property or assets of any kind or nature related to the Land or the Improvements now or in the future, including operating agreements, surveys, plans and
specifications and contracts for architectural, engineering and construction services relating to the Land or the Improvements, and all other intangible property and rights relating to the operation of, or used in connection with, the Land or the
Improvements, including all governmental permits relating to any activities on the Land. 
 “Prepayment Premium” has the
meaning set forth in the Loan Agreement. 
 “Property Jurisdiction” means the jurisdiction in which the Land is located.

 “Rents” means all rents (whether from residential or non-residential space), revenues and other income from the Land or the
Improvements, including subsidy payments received from any sources, including payments under any “Housing Assistance Payments Contract” or other rental subsidy agreement (if any), parking fees, laundry and vending machine income and fees
and charges for food, health care and other services provided at the Mortgaged Property, whether now due, past due, or to become due, and tenant security deposits. 
 “Software” means a computer program and any supporting information provided in connection with a transaction relating to the program. The term does not include any computer program that
is included in the definition of Goods. 
 “Taxes” means all taxes, assessments, vault rentals and other charges, if any,
general, special or otherwise, including assessments for schools, public betterments and general or local improvements, which are levied, assessed or imposed by any public authority or quasi-public authority, and which, if not paid, may become a
lien, on the Land or the Improvements or any taxes upon any Loan Document. 
 “Title Policy” has the meaning set forth in the
Loan Agreement. 
 “UCC” means the Uniform Commercial Code in effect in the Property Jurisdiction, as amended from time to
time. 
 “UCC Collateral” means any or all of that portion of the Mortgaged Property, whether acquired now or in the future, in
which a security interest may be granted under the UCC. 
 2. Security Agreement; Fixture Filing. 

(a) To secure to Lender, the repayment of the Indebtedness, and all renewals, extensions and modifications thereof, and the performance of
the covenants and agreements of 

  

					
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Borrower contained in the Loan Documents, Borrower hereby pledges, assigns, and grants to Lender a continuing security interest in the UCC Collateral. This Security Instrument constitutes a
security agreement and a financing statement under the UCC. This Security Instrument also constitutes a financing statement pursuant to the terms of the UCC with respect to any part of the Mortgaged Property that is or may become a Fixture under
applicable law, and will be recorded as a “fixture filing” in accordance with the UCC. Borrower hereby authorizes Lender to file financing statements, continuation statements and financing statement amendments in such form as Lender may
require to perfect or continue the perfection of this security interest without the signature of Borrower. From and after the occurrence of an Event of Default, Lender shall have the remedies of a secured party under the UCC, in addition to all
remedies provided by this Security Instrument existing under applicable law. Lender may exercise any or all of its remedies against the UCC Collateral separately or together, and in any order, without in any way affecting the availability or
validity of Lender’s other remedies. For purposes of the UCC, the debtor is Borrower and the secured party is Lender. The name and address of the debtor and secured party are set forth after Borrower’s signature below which are the
addresses from which information on the security interest may be obtained. 
 (b) Borrower represents and warrants that:
(1) Borrower maintains its chief executive office at the location set forth after Borrower’s signature below, and Borrower will notify Lender in writing of any change in its chief executive office within five (5) days of such change;
(2) Borrower is the record owner of the Mortgaged Property; (3) Borrower’s state of incorporation, organization, or formation, if applicable, is as set forth on Page 1 of this Security Instrument; (4) Borrower’s exact
legal name is as set forth on Page 1 of this Security Instrument; (5) Borrower’s organizational identification number, if applicable, is as set forth after Borrower’s signature below; (6) Borrower is the owner of the UCC
Collateral subject to no liens, charges or encumbrances other than the lien hereof; (7) the UCC Collateral will not be removed from the Mortgaged Property without the consent of Lender; and (8) no financing statement covering any of the
UCC Collateral or any proceeds thereof is on file in any public office except pursuant hereto. 
 (c) All property of every kind
acquired by Borrower after the date of this Security Instrument which by the terms of this Security Instrument shall be subject to the lien and the security interest created hereby, shall immediately upon the acquisition thereof by Borrower and
without further conveyance or assignment become subject to the lien and security interest created by this Security Instrument. Nevertheless, Borrower shall execute, acknowledge, deliver and record or file, as appropriate, all and every such further
deeds of trust, mortgages, deeds to secure debt, security agreements, financing statements, assignments and assurances as Lender shall require for accomplishing the purposes of this Security Instrument and to comply with the rerecording requirements
of the UCC. 

  

					
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 3. Assignment of Leases and Rents; Appointment of Receiver; Lender in Possession. 

(a) As part of the consideration for the Indebtedness, Borrower absolutely and unconditionally assigns and transfers to Lender all Leases
and Rents. It is the intention of Borrower to establish present, absolute and irrevocable transfers and assignments to Lender of all Leases and Rents and to authorize and empower Lender to collect and receive all Rents without the necessity of
further action on the part of Borrower. Borrower and Lender intend the assignments of Leases and Rents to be effective immediately and to constitute absolute present assignments, and not assignments for additional security only. Only for purposes of
giving effect to these absolute assignments of Leases and Rents, and for no other purpose, the Leases and Rents shall not be deemed to be a part of the Mortgaged Property. However, if these present, absolute and unconditional assignments of Leases
and Rents are not enforceable by their terms under the laws of the Property Jurisdiction, then each of the Leases and Rents shall be included as part of the Mortgaged Property, and it is the intention of Borrower, in such circumstance, that this
Security Instrument create and perfect a lien on each of the Leases and Rents in favor of Lender, which liens shall be effective as of the date of this Security Instrument. 
 (b) Until the occurrence of an Event of Default, but subject to the limitations set forth in the Loan Documents, Borrower shall have a revocable license to exercise all rights, power and authority granted
to Borrower under the Leases (including the right, power and authority to modify the terms of any Lease or extend or terminate any Lease subject to the limitations set forth in the Loan Documents), and to collect and receive all Rents, to hold all
Rents in trust for the benefit of Lender, and to apply all Rents to pay the Monthly Debt Service Payments and the other amounts then due and payable under the other Loan Documents, including Imposition Deposits, and to pay the current costs and
expenses of managing, operating and maintaining the Mortgaged Property, including utilities and Impositions (to the extent not included in Imposition Deposits), tenant improvements and other capital expenditures. So long as no Event of Default has
occurred, the Rents remaining after application pursuant to the preceding sentence may be retained by Borrower free and clear of, and released from, Lender’s rights with respect to Rents under this Security Instrument. 

(c) From and after the occurrence of an Event of Default, without the necessity of Lender entering upon and taking and maintaining
control of the Mortgaged Property directly, by a receiver, or by any other manner or proceeding permitted by the laws of the Property Jurisdiction, the revocable license granted to Borrower pursuant to Section 3(b) shall automatically
terminate, and Lender shall immediately have all rights, powers and authority granted to Borrower under any Lease (including the right, power and authority to modify the terms of any such Lease, or extend or terminate any such Lease) and, without
notice, Lender shall be entitled to all Rents as they become due and payable, including Rents then due and unpaid. From and after the occurrence of an Event of Default, Borrower authorizes Lender to collect, sue for and compromise Rents and directs
each tenant of the Mortgaged Property to pay all Rents to, or as directed by, Lender, and Borrower shall, upon Borrower’s receipt of any Rents from any sources, pay the total amount of such receipts to Lender. Although the foregoing rights


  

					
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of Lender are self-effecting, at any time from and after the occurrence of an Event of Default, Lender may make demand for all Rents, and Lender may give, and Borrower hereby irrevocably
authorizes Lender to give, notice to all tenants of the Mortgaged Property instructing them to pay all Rents to Lender. No tenant shall be obligated to inquire further as to the occurrence or continuance of an Event of Default, and no tenant shall
be obligated to pay to Borrower any amounts that are actually paid to Lender in response to such a notice. Any such notice by Lender shall be delivered to each tenant personally, by mail or by delivering such demand to each rental unit. 

(d) From and after the occurrence of an Event of Default, Lender may, regardless of the adequacy of Lender’s security or the
solvency of Borrower, and even in the absence of waste, enter upon, take and maintain full control of the Mortgaged Property, and may exclude Borrower and its agents and employees therefrom, in order to perform all acts that Lender, in its
discretion, determines to be necessary or desirable for the operation and maintenance of the Mortgaged Property, including the execution, cancellation or modification of Leases, the collection of all Rents (including through use of a lockbox, at
Lender’s election), the making of repairs to the Mortgaged Property and the execution or termination of contracts providing for the management, operation or maintenance of the Mortgaged Property, for the purposes of enforcing this assignment of
Rents, protecting the Mortgaged Property or the security of this Security Instrument and the Mortgage Loan, or for such other purposes as Lender in its discretion may deem necessary or desirable. 

(e) Notwithstanding any other right provided Lender under this Security Instrument or any other Loan Document, if an Event of Default has
occurred, and regardless of the adequacy of Lender’s security or Borrower’s solvency, and without the necessity of giving prior notice (oral or written) to Borrower, Lender may apply to any court having jurisdiction for the appointment of
a receiver for the Mortgaged Property to take any or all of the actions set forth in Section 3. If Lender elects to seek the appointment of a receiver for the Mortgaged Property at any time after an Event of Default has occurred, Borrower, by
its execution of this Security Instrument, expressly consents to the appointment of such receiver, including the appointment of a receiver ex parte, if permitted by applicable law. Borrower consents to shortened time consideration of a motion
to appoint a receiver. Lender or the receiver, as applicable, shall be entitled to receive a reasonable fee for managing the Mortgaged Property and such fee shall become an additional part of the Indebtedness. Immediately upon appointment of a
receiver or Lender’s entry upon and taking possession and control of the Mortgaged Property, possession of the Mortgaged Property and all documents, records (including records on electronic or magnetic media), accounts, surveys, plans, and
specifications relating to the Mortgaged Property, and all security deposits and prepaid Rents, shall be surrendered to Lender or the receiver, as applicable. If Lender takes possession and control of the Mortgaged Property, Lender may exclude
Borrower and its representatives from the Mortgaged Property. 

  

					
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 (f) The acceptance by Lender of the assignments of the Leases and Rents pursuant to this
Section 3 shall not at any time or in any event obligate Lender to take any action under any Loan Document or to expend any money or to incur any expense. Lender shall not be liable in any way for any injury or damage to person or property
sustained by any Person in, on or about the Mortgaged Property. Prior to Lender’s actual entry upon and taking possession and control of the Land and Improvements, Lender shall not be: 

(1) obligated to perform any of the terms, covenants and conditions contained in any Lease (or otherwise have any
obligation with respect to any Lease); 
 (2) obligated to appear in or defend any action or proceeding relating
to any Lease or the Mortgaged Property; or 
 (3) responsible for the operation, control, care, management or
repair of the Mortgaged Property or any portion of the Mortgaged Property. 
 The execution of this Security Instrument shall constitute
conclusive evidence that all responsibility for the operation, control, care, management and repair of the Mortgaged Property is and shall be that of Borrower, prior to such actual entry and taking possession and control by Lender of the Land and
Improvements. 
 (g) Lender shall be liable to account only to Borrower and only for Rents actually received by Lender. Lender
shall not be liable to Borrower, anyone claiming under or through Borrower or anyone having an interest in the Mortgaged Property by reason of any act or omission of Lender under this Section 3, and Borrower hereby releases and discharges
Lender from any such liability to the fullest extent permitted by law. If the Rents are not sufficient to meet the costs of taking control of and managing the Mortgaged Property and collecting the Rents, any funds expended by Lender for such
purposes shall be added to, and become a part of, the principal balance of the Indebtedness, be immediately due and payable, and bear interest at the Default Rate from the date of disbursement until fully paid. Any entering upon and taking control
of the Mortgaged Property by Lender or the receiver, and any application of Rents as provided in this Security Instrument, shall not cure or waive any Event of Default or invalidate any other right or remedy of Lender under applicable law or
provided for in this Security Instrument or any Loan Document. 
 4. Protection of Lender’s Security. 

If Borrower fails to perform any of its obligations under this Security Instrument or any other Loan Document, or any action or proceeding
is commenced that purports to affect the Mortgaged Property, Lender’s security, rights or interests under this Security Instrument or any Loan Document (including eminent domain, insolvency, code enforcement, civil or criminal forfeiture,
enforcement of Environmental Laws, fraudulent conveyance or reorganizations or proceedings involving a debtor or decedent), Lender may, at its option, make such appearances, disburse or pay such sums and take such actions, whether before or after an
Event of Default or whether directly or to any receiver for the Mortgaged Property, as Lender reasonably deems necessary to perform such obligations of Borrower and to protect the Mortgaged Property or Lender’s security, rights or interests in
the Mortgaged Property or the Mortgage Loan, including: 

  

					
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 (a) paying fees and out-of-pocket expenses of attorneys, accountants, inspectors and
consultants; 
 (b) entering upon the Mortgaged Property to make repairs or secure the Mortgaged Property; 

(c) obtaining (or force-placing) the insurance required by the Loan Documents; and 

(d) paying any amounts required under any of the Loan Documents that Borrower has failed to pay. 

Any amounts so disbursed or paid by Lender shall be added to, and become part of, the principal balance of the Indebtedness, be immediately due and
payable and bear interest at the Default Rate from the date of disbursement until fully paid. The provisions of this Section 4 shall not be deemed to obligate or require Lender to incur any expense or take any action. 

5. No Other Indebtedness and Mezzanine Financing. 
 Other than the Mortgage Loan, Borrower shall not incur or be obligated at any time with respect to any loan or other indebtedness in connection with or secured by the Mortgaged Property. Neither Borrower
nor any owner of Borrower shall (a) incur any “mezzanine debt,” secured or unsecured, or issue any preferred equity that is secured by a pledge of the ownership interests in Borrower or by a pledge of the cash flows of Borrower to the
extent the Transfer of the underlying ownership interests is otherwise prohibited by the Loan Agreement, or (b) incur any similar Indebtedness or equity with respect to the Mortgaged Property or ownership interest in Borrower or any owner of
Key Principal or Guarantor that is secured by a pledge of the cash flows of Borrower to the extent the Transfer of the underlying ownership interests is otherwise prohibited by the Loan Agreement. 

6. Default; Acceleration; Remedies. 
 (a) From and after the occurrence of an Event of Default, Lender, at its option, may declare the Indebtedness to be immediately due and payable without further demand, and may either with or without entry
or taking possession as herein provided or otherwise, proceed by suit or suits at law or in equity or any other appropriate proceeding or remedy (1) to enforce payment of the Mortgage Loan; (2) to foreclose this Security Instrument
judicially or non-judicially by the power of sale granted herein; (3) to enforce or exercise any right under any Loan Document; and (4) to pursue any one (1)or more other remedies provided in this Security Instrument or in any other
Loan Document or otherwise afforded by applicable law. Each right and remedy provided in this Security Instrument or any other Loan Document is distinct from all other rights or remedies under this Security Instrument or any other Loan Document or
otherwise afforded 

  

					
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by applicable law, and each shall be cumulative and may be exercised concurrently, independently, or successively, in any order. Borrower has the right to bring an action to assert the
nonexistence of an Event of Default or any other defense of Borrower to acceleration and sale. 
 (b) Borrower acknowledges that
the power of sale granted in this Security Instrument may be exercised or directed by Lender without prior judicial hearing. In the event Lender invokes the power of sale: 

(1) Lender shall send to Borrower and any other Persons required to receive such notice, written notice of Lender’s
election to cause the Mortgaged Property to be sold. Borrower hereby authorizes and empowers Trustee to take possession of the Mortgaged Property, or any part thereof, and hereby grants to Trustee a power of sale and authorizes and empowers Trustee
to sell (or, in the case of the default of any purchaser, to resell) the Mortgaged Property or any part thereof, in compliance with applicable law, including compliance with any and all notice and timing requirements for such sale; 

(2) Trustee shall have the authority to determine the terms of the sale. In connection with any such sale, the whole of
the Mortgaged Property may be sold in one (1) parcel as an entirety or in separate lots or parcels at the same or different times. Lender shall have the right to become the purchaser at any such sale. Trustee shall be entitled to receive fees
and expenses from such sale not to exceed the amount permitted by applicable law; 
 (3) within a reasonable time
after the sale, Trustee shall deliver to the purchaser of the Mortgaged Property a deed or such other appropriate conveyance document conveying the Mortgaged Property so sold without any express or implied covenant or warranty. The recitals in such
deed or document shall be prima facie evidence of the truth of the statements made in those recitals; and 
 (4)
the outstanding principal amount of the Mortgage Loan and the other Indebtedness, if not previously due, shall be and become immediately due and payable without demand or notice of any kind. If the Mortgaged Property is sold for an amount less than
the amount outstanding under the Indebtedness, the deficiency shall be determined by the purchase price at the sale or sales. Borrower waives all rights, claims, and defenses with respect to Lender’s ability to obtain a deficiency judgment.

 (c) Borrower acknowledges and agrees that the proceeds of any sale shall be applied as determined by Lender unless otherwise
required by applicable law. 
 (d) The Trustee hereby lets the Mortgaged Property to Borrower until a sale is held under the
foregoing provisions therefor, or until an Event of Default shall occur, upon the following terms and conditions: Borrower, and every and all persons claiming or possessing 

  

					
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such premises, and any part thereof, by, through or under Borrower, shall pay rent therefor during said term, payable upon demand, and shall and will surrender peaceable possession of the
Mortgaged Property, and any and every part thereof, sold under the provisions of this Security Instrument, to the purchaser thereof under such sale, without notice or demand therefor, and shall and will at once, without notice, surrender up
possession of the Mortgaged Property and every part thereof in the event Lender shall take charge and enter as hereinbefore provided. 
 (e) In connection with the exercise of Lender’s rights and remedies under this Security Instrument and any other Loan Document, there shall be allowed and included as Indebtedness: (1) all
expenditures and expenses authorized by applicable law and all other expenditures and expenses which may be paid or incurred by or on behalf of Lender for reasonable legal fees, appraisal fees, outlays for documentary and expert evidence,
stenographic charges and publication costs; (2) all expenses of any environmental site assessments, environmental audits, environmental remediation costs, appraisals, surveys, engineering studies, wetlands delineations, flood plain studies, and
any other similar testing or investigation deemed necessary or advisable by Lender incurred in preparation for, contemplation of or in connection with the exercise of Lender’s rights and remedies under the Loan Documents; and (3) costs
(which may be reasonably estimated as to items to be expended in connection with the exercise of Lender’s rights and remedies under the Loan Documents) of procuring all abstracts of title, title searches and examinations, title insurance
policies, and similar data and assurance with respect to title as Lender may deem reasonably necessary either to prosecute any suit or to evidence the true conditions of the title to or the value of the Mortgaged Property to bidders at any sale
which may be held in connection with the exercise of Lender’s rights and remedies under the Loan Documents. All expenditures and expenses of the nature mentioned in this Section 6, and such other expenses and fees as may be incurred in the
protection of the Mortgaged Property and rents and income therefrom and the maintenance of the lien of this Security Instrument, including the fees of any attorney employed by Lender in any litigation or proceedings affecting this Security
Instrument, the Note, the other Loan Documents, or the Mortgaged Property, including bankruptcy proceedings, any Foreclosure Event, or in preparation of the commencement or defense of any proceedings or threatened suit or proceeding, or otherwise in
dealing specifically therewith, shall be so much additional Indebtedness and shall be immediately due and payable by Borrower, with interest thereon at the Default Rate until paid. 

(f) Any action taken by Trustee or Lender pursuant to the provisions of this Section 6 shall comply with the laws of the Property
Jurisdiction. Such applicable laws shall take precedence over the provisions of this Section 6, but shall not invalidate or render unenforceable any other provision of any Loan Document that can be construed in a manner consistent with any
applicable law. If any provision of this Security Instrument shall grant to Lender (including Lender acting as a mortgagee-in-possession), Trustee or a receiver appointed pursuant to the provisions of this Security Instrument any powers, rights or
remedies prior to, upon or following the occurrence of an Event of Default that are more limited than the powers, rights, or remedies that would otherwise be vested in such party under any applicable law in the absence of said provision, such party
shall be vested with the powers, rights, and remedies granted in such applicable law to the full extent permitted by law. 

  

					
	Fannie Mae Multifamily Security Instrument	 	Form 6025.MO	 	Page 13
	Missouri	 	01-11	 	© 2011 Fannie Mae









 7. Waiver of Statute of Limitations and Marshaling. 

Borrower hereby waives the right to assert any statute of limitations as a bar to the enforcement of the lien of this Security Instrument
or to any action brought to enforce any Loan Document. Notwithstanding the existence of any other security interests in the Mortgaged Property held by Lender or by any other party, Lender shall have the right to determine the order in which any or
all of the Mortgaged Property shall be subjected to the remedies provided in this Security Instrument and/or any other Loan Document or by applicable law. Lender shall have the right to determine the order in which any or all portions of the
Indebtedness are satisfied from the proceeds realized upon the exercise of such remedies. Borrower, for itself and all who may claim by, through, or under it, and any party who now or in the future acquires a security interest in the Mortgaged
Property and who has actual or constructive notice of this Security Instrument waives any and all right to require the marshaling of assets or to require that any of the Mortgaged Property be sold in the inverse order of alienation or that any of
the Mortgaged Property be sold in parcels (at the same time or different times) in connection with the exercise of any of the remedies provided in this Security Instrument or any other Loan Document, or afforded by applicable law. 

8. Waiver of Redemption; Rights of Tenants. 
 (a) Borrower hereby covenants and agrees that it will not at any time apply for, insist upon, plead, avail itself, or in any manner claim or take any advantage of, any appraisement, stay, exemption or
extension law or any so-called “Moratorium Law” now or at any time hereafter enacted or in force in order to prevent or hinder the enforcement or foreclosure of this Security Instrument. Without limiting the foregoing: 

(1) Borrower for itself and all Persons who may claim by, through, or under Borrower, hereby expressly waives any
so-called “Moratorium Law” and any and all rights of reinstatement and redemption, if any, under any order or decree of foreclosure of this Security Instrument, it being the intent hereof that any and all such “Moratorium Laws,”
and all rights of reinstatement and redemption of Borrower and of all other Persons claiming by, through, or under Borrower are and shall be deemed to be hereby waived to the fullest extent permitted by applicable law; 

(2) Borrower shall not invoke or utilize any such law or laws or otherwise hinder, delay or impede the execution of any
right, power remedy herein or otherwise granted or delegated to Lender but will suffer and permit the execution of every such right, power and remedy as though no such law or laws had been made or enacted; and 

  

					
	Fannie Mae Multifamily Security Instrument	 	Form 6025.MO	 	Page 14
	Missouri	 	01-11	 	© 2011 Fannie Mae









 (3) If Borrower is a trust, Borrower represents that the provisions of this
Section 8 (including the waiver of reinstatement and redemption rights) were made at the express direction of Borrower’s beneficiaries and the persons having the power of direction over Borrower, and are made on behalf of the trust estate
of Borrower and all beneficiaries of Borrower, as well as all other persons mentioned above. 
 (b) Lender shall have the right
to foreclose subject to the rights of any tenant or tenants of the Mortgaged Property having an interest in the Mortgaged Property prior to that of Lender. The failure to join any such tenant or tenants of the Mortgaged Property as party defendant
or defendants in any such civil action or the failure of any decree of foreclosure and sale to foreclose their rights shall not be asserted by Borrower as a defense in any civil action instituted to collect the Indebtedness, or any part thereof or
any deficiency remaining unpaid after foreclosure and sale of the Mortgaged Property, any statute or rule of law at any time existing to the contrary notwithstanding. 
 9. Notice. 
 (a) All notices under this Security Instrument shall be:

 (1) in writing, and shall be (A) delivered, in person, (B) mailed, postage prepaid, either by
registered or certified delivery, return receipt requested, or (C) sent by overnight express courier; 
 (2)
addressed to the intended recipient at its respective address set forth at the end of this Security Instrument; and 
 (3) deemed given on the earlier to occur of: 
 (A) the date when
the notice is received by the addressee; or 
 (B) if the recipient refuses or rejects delivery, the date on
which the notice is so refused or rejected, as conclusively established by the records of the United States Postal Service or such express courier service. 
 (b) Any party to this Security Instrument may change the address to which notices intended for it are to be directed by means of notice given to the other party in accordance with this Section 9.

 (c) Any required notice under this Security Instrument which does not specify how notices are to be given shall be given in
accordance with this Section 9. 

  

					
	Fannie Mae Multifamily Security Instrument	 	Form 6025.MO	 	Page 15
	Missouri	 	01-11	 	© 2011 Fannie Mae









 10. Mortgagee-in-Possession. 
 Borrower acknowledges and agrees that the exercise by Lender of any of the rights conferred in this Security Instrument shall not be construed to make Lender a mortgagee-in-possession of the Mortgaged
Property so long as Lender has not itself entered into actual possession of the Land and Improvements. 
 11. Release. 

Upon payment in full of the Indebtedness, Lender shall cause the release of this Security Instrument and Borrower shall pay Lender’s
costs incurred in connection with such release. 
 12. Further Assurances for Trustee. 

Borrower shall execute, acknowledge, and deliver, at its sole cost and expense, all further acts, deeds, conveyances, assignments,
estoppel certificates, financing statements, transfers and assurances as Trustee may require from time to time in order to better assure, grant, and convey to Trustee the rights intended to be granted, now or in the future, to Trustee under this
Security Instrument. 
 13. Successor Trustee. 
 Lender, at Lender’s option, with or without cause, may from time to time remove Trustee and appoint a successor trustee by an instrument recorded in the city or county in which this Security
Instrument is recorded. Without conveyance of the Mortgaged Property, the successor trustee shall succeed to all the title, power and duties conferred upon the Trustee in this Security Instrument and by applicable law. 

For purposes of this Security Instrument the term “Trustee” means the person identified as Trustee in the first paragraph of
this Security Instrument and any successor trustee appointed by Lender pursuant to this Section 13 or otherwise appointed as permitted by law. 
 14. Missouri State Specific Provisions. 
 The following notice is given
to comply with Sections 432.045 and 432.047 of the Revised Statutes of Missouri: Oral agreements or commitments to loan money, extend credit or to forbear from enforcing repayment of a debt, including promises to extend or sever such debt, are
not enforceable, regardless of the legal theory upon which it is based that is in any way related to the credit agreement. To protect you (borrower(s)) and us (creditor) from misunderstanding or disappointment, any agreements we reach covering such
matters are contained in this writing, which is the complete and exclusive statement of the agreement between us, except as we may later agree in writing to modify it. 

  

					
	Fannie Mae Multifamily Security Instrument	 	Form 6025.MO	 	Page 16
	Missouri	 	01-11	 	© 2011 Fannie Mae









 As used in this Section 14, “this writing” is deemed to include this
Security Instrument and all other Loan Documents. 
 15. Governing Law; Consent to Jurisdiction and Venue. 

This Security Instrument shall be governed by the laws of the Property Jurisdiction without giving effect to any choice of law provisions
thereof that would result in the application of the laws of another jurisdiction. Borrower agrees that any controversy arising under or in relation to this Security Instrument shall be litigated exclusively in the Property Jurisdiction. The state
and federal courts and authorities with jurisdiction in the Property Jurisdiction shall have exclusive jurisdiction over all controversies that arise under or in relation to any security for the Indebtedness. Borrower irrevocably consents to
service, jurisdiction, and venue of such courts for any such litigation and waives any other venue to which it might be entitled by virtue of domicile, habitual residence or otherwise. 
 16. Miscellaneous Provisions. 
 (a) This Security Instrument shall bind, and
the rights granted by this Security Instrument shall benefit, the successors and assigns of Lender. This Security Instrument shall bind, and the obligations granted by this Security Instrument shall inure to, any permitted successors and assigns of
Borrower under the Loan Agreement. If more than one (1) person or entity signs this Security Instrument as Borrower, the obligations of such persons and entities shall be joint and several. The relationship between Lender and Borrower shall be
solely that of creditor and debtor, respectively, and nothing contained in this Security Instrument shall create any other relationship between Lender and Borrower. No creditor of any party to this Security Instrument and no other person shall be a
third party beneficiary of this Security Instrument or any other Loan Document. 
 (b) The invalidity or unenforceability of any
provision of this Security Instrument or any other Loan Document shall not affect the validity or enforceability of any other provision of this Security Instrument or of any other Loan Document, all of which shall remain in full force and effect.
This Security Instrument contains the complete and entire agreement among the parties as to the matters covered, rights granted and the obligations assumed in this Security Instrument. This Security Instrument may not be amended or modified except
by written agreement signed by the parties hereto. 
 (c) The following rules of construction shall apply to this Security
Instrument: 
 (1) The captions and headings of the sections of this Security Instrument are for convenience only
and shall be disregarded in construing this Security Instrument. 
 (2) Any reference in this Security Instrument
to an “Exhibit” or “Schedule” or a “Section” or an “Article” shall, unless otherwise explicitly provided, be construed as referring, respectively, to an exhibit or schedule attached to this Security Instrument
or to a Section or Article of this Security Instrument. 

  

					
	Fannie Mae Multifamily Security Instrument	 	Form 6025.MO	 	Page 17
	Missouri	 	01-11	 	© 2011 Fannie Mae









 (3) Any reference in this Security Instrument to a statute or regulation
shall be construed as referring to that statute or regulation as amended from time to time. 
 (4) Use of the
singular in this Security Instrument includes the plural and use of the plural includes the singular. 
 (5) As
used in this Security Instrument, the term “including” means “including, but not limited to” or “including, without limitation,” and is for example only, and not a limitation. 

(6) Whenever Borrower’s knowledge is implicated in this Security Instrument or the phrase “to Borrower’s
knowledge” or a similar phrase is used in this Security Instrument, Borrower’s knowledge or such phrase(s) shall be interpreted to mean to the best of Borrower’s knowledge after reasonable and diligent inquiry and investigation.

 (7) Unless otherwise provided in this Security Instrument, if Lender’s approval is required for any
matter hereunder, such approval may be granted or withheld in Lender’s sole and absolute discretion. 
 (8)
Unless otherwise provided in this Security Instrument, if Lender’s designation, determination, selection, estimate, action or decision is required, permitted or contemplated hereunder, such designation, determination, selection, estimate,
action or decision shall be made in Lender’s sole and absolute discretion. 
 (9) All references in this
Security Instrument to a separate instrument or agreement shall include such instrument or agreement as the same may be amended or supplemented from time to time pursuant to the applicable provisions thereof. 

(10) “Lender may” shall mean at Lender’s discretion, but shall not be an obligation. 

17. Time is of the Essence. 
 Borrower agrees that, with respect to each and every obligation and covenant contained in this Security Instrument and the other Loan Documents, time is of the essence. 

18. WAIVER OF TRIAL BY JURY. 
 TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, EACH OF BORROWER AND LENDER (BY ITS ACCEPTANCE HEREOF) (A) COVENANTS AND AGREES NOT TO ELECT A TRIAL BY JURY WITH RESPECT TO ANY ISSUE


  

					
	Fannie Mae Multifamily Security Instrument	 	Form 6025.MO	 	Page 18
	Missouri	 	01-11	 	© 2011 Fannie Mae









 
ARISING OUT OF THIS SECURITY INSTRUMENT OR THE RELATIONSHIP BETWEEN THE PARTIES AS BORROWER AND LENDER THAT IS TRIABLE OF RIGHT BY A JURY AND (B) WAIVES ANY RIGHT TO TRIAL BY JURY WITH
RESPECT TO SUCH ISSUE TO THE EXTENT THAT ANY SUCH RIGHT EXISTS NOW OR IN THE FUTURE. THIS WAIVER OF RIGHT TO TRIAL BY JURY IS SEPARATELY GIVEN BY EACH OF BORROWER AND LENDER, KNOWINGLY AND VOLUNTARILY WITH THE BENEFIT OF COMPETENT LEGAL COUNSEL.

 ATTACHED EXHIBITS. The following Exhibits are attached to this Security Instrument and incorporated fully herein
by reference: 
  

					
	x	 	Exhibit A	  	Description of the Land (required)
			
	 ̈	 	Exhibit B	  	Modifications to Security Instrument


 [Remainder of Page Intentionally Blank] 

  

					
	Fannie Mae Multifamily Security Instrument	 	Form 6025.MO	 	Page 19
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 IN WITNESS WHEREOF, Borrower has signed and delivered this Security Instrument under
seal (where applicable) or has caused this Security Instrument to be signed and delivered by its duly authorized representative under seal (where applicable). Where applicable law so provides, Borrower intends that this Security Instrument shall be
deemed to be signed and delivered as a sealed instrument. 
  

			
	BORROWER:
	
	 SIR EBT LOFTS, LLC,

	 a Delaware limited liability company

		
	By:	 	 Steadfast Income Advisor, LLC,
 a Delaware limited liability company

	Its:	 	Manager


 
			
		
	By:	 	/s/    Rodney F. Emery
		 	 Name: Rodney F. Emery

		 	 Title: CEO and President



  

	
	 The name, chief executive office and organizational
 identification number of Borrower (as Debtor under
 any applicable Uniform Commercial Code)
are:

	
	 Debtor Name/Record Owner: SIR EBT LOFTS, LLC

Debtor Chief Executive Office Address:

18100 Von Karman Avenue, Suite 500

Irvine, Orange County, California 92612

Debtor Organizational ID Number: 505026




  

					
	Fannie Mae Multifamily Security Instrument	 	Form 6025.MO	 	Page S-1
	Missouri	 	01-11	 	© 2011 Fannie Mae









 
	
	 The name and chief executive office of Lender (as
 Secured Party) are:
 Secured Party Name: PNC BANK, NATIONAL ASSOCIATION

Secured Party Chief Executive Office Address:

26901 Agoura Road, Suite 200
 Calabasas Hills,
California 91301

	
	Trustee Notice Address:
	
	 Steven M. Leigh, Esq.

Martin, Leigh, Laws & Fritzlen PC

900 Peck’s Plaza

1044 Main Street
 Kansas City, MO 64105




  

					
	Fannie Mae Multifamily Security Instrument	 	Form 6025.MO	 	Page S-2
	Missouri	 	01-11	 	© 2011 Fannie Mae









 ACKNOWLEDGEMENT 

 

							
	 STATE OF CALIFORNIA
	  	 	)	  	  	
		  	 	)	  	  	SS.
	 COUNTY OF ORANGE
	  	 	)	  	  	

 On December 15, 2011, before me, Mona Salama, a Notary Public, personally appeared Rodney F. Emery, who
proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the
person, or the entity upon behalf of which the person acted, executed the instrument. 
 I certify under penalty of perjury
under the laws of the State of California that the foregoing paragraph is true and correct. 
 WITNESS my hand and official
seal. 

	
	
	/s/ Mona Salama
	Notary Public


 [Seal] 

  

					
	Fannie Mae Multifamily Security Instrument	 	Form 6025.MO	 	Page S-3
	Missouri	 	01-11	 	© 2011 Fannie Mae









 EXHIBIT A 
 DESCRIPTION OF THE LAND 
 Lots H, I, J and K, Block 23, MCGEE’S ADDITION, a
subdivision in Kansas City, Jackson County, Missouri, according to the recorded plat thereof. 
 NOTE: City, State and County Tax ID No.:
29-230-34-02-00-0-00-000 

  

					
	Fannie Mae Multifamily Security Instrument	 	Form 6025.MO	 	Page A-1
	Missouri	 	01-11	 	© 2011 Fannie Mae