Document:

Exhibit 10.7

  

TRADE STREET OPERATING PARTNERSHIP, LP,
a Delaware limited partnership,

and TRADE STREET RESIDENTIAL, INC.,
a Maryland corporation,

(Guarantor)

 

in favor of

 

NEW YORK LIFE INSURANCE COMPANY

(Lender)

 

GUARANTY

 

Dated: As of January 21, 2014

 

    	Loan No. 374-0518
WCSR 31223455	 	 

    	 

    

 

GUARANTY

 

This GUARANTY ("Guaranty")
is executed as of the date set forth on the cover page hereof, by TRADE STREET OPERATING PARTNERSHIP, LP, a Delaware limited
partnership (“TS Partnership”) having an address at 19950 West Country Club Drive, Suite 800, Aventura, Florida 33180,
and TRADE STREET RESIDENTIAL, INC., a Maryland corporation (“TSR, Inc.”), having an address at 19950 West Country
Club Drive, Suite 800, Aventura, Florida 33180 (TS Partnership and TSR, Inc. are collectively referred to herein as "Guarantor")
for the benefit of NEW YORK LIFE INSURANCE COMPANY, a New York mutual insurance company having an address at 51 Madison
Avenue, New York, New York 10010 ("Lender").

 

WITNESSETH:

 

WHEREAS, pursuant to
that certain Promissory Note, dated of even date herewith, executed by TS Miller Creek, LLC, a Delaware limited liability company
("Borrower") and payable to the order of Lender in the original principal amount of $26,250,000.00 (together with all
renewals, modifications, increases and extensions thereof, the "Note"), Borrower has become indebted, and may from time
to time be further indebted, to Lender with respect to a loan ("Loan") which is secured by the lien and security interest
of a Deed of Trust, Assignment of Leases and Rents and Security Agreement and Fixture Filing, of even date herewith (the "Deed
of Trust"), and further evidenced, secured or governed by other instruments and documents executed in connection with the
Loan (together with the Note and Deed of Trust, the "Loan Instruments"); and

 

WHEREAS, Lender is not
willing to make the Loan, or otherwise extend credit, to Borrower unless Guarantor unconditionally guarantees payment and performance
to Lender of the Guaranteed Obligations (as herein defined); and

 

WHEREAS, Guarantor is
the owner directly or indirectly of interests in Borrower, and Guarantor will directly benefit from Lender's making the Loan to
Borrower.

 

NOW, THEREFORE, as an
inducement to Lender to make the Loan to Borrower, and to extend such additional credit as Lender may from time to time agree to
extend under the Loan Instruments, and for other good and valuable consideration, the receipt and legal sufficiency of which are
hereby acknowledged, the parties do hereby agree as follows:

 

1.1           ARTICLE I

 

NATURE AND SCOPE OF GUARANTY

 

1.1           Guaranty
of Obligation. Guarantor hereby irrevocably and unconditionally guarantees to Lender and its successors and assigns the
payment and performance of the Guaranteed Obligations as and when the same shall be due and payable, whether by lapse of time,
by acceleration of maturity or otherwise. Guarantor hereby irrevocably and unconditionally covenants and agrees that it is liable
for the Guaranteed Obligations as a primary obligor and that it shall fully perform each and every term and provision hereof. The
recitals and premises of this Guaranty are incorporated herein by reference and shall be deemed to be a part of this Guaranty.

 

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1.2         Definition
of Guaranteed Obligations. As used herein, the term “Guaranteed Obligations” means all of Borrower’s
present and future obligations under the Note and Deed of Trust arising from, under or out of the Non-Recourse Exceptions (as defined
in the Deed of Trust) together with all losses, claims, damages, costs, expenses and /or liabilities, including, without limitation,
attorney’s fees and expenses, incurred by Lender in connection therewith.

 

1.3           Nature
of Guaranty. This Guaranty is an irrevocable, absolute, continuing guaranty of payment and performance and not a guaranty
of collection. This Guaranty may not be revoked by Guarantor and shall continue to be effective with respect to any Guaranteed
Obligations arising or created after any attempted revocation by Guarantor and after (if Guarantor is a natural person) Guarantor's
death (in which event this Guaranty shall be binding upon Guarantor's estate and Guarantor's legal representatives and heirs).
The fact that at any time or from time to time the Guaranteed Obligations may be increased or reduced shall not release or discharge
the obligation of Guarantor to Lender with respect to the Guaranteed Obligations. This Guaranty may be enforced by Lender and any
subsequent holder of the Note and shall not be discharged by the assignment or negotiation of all or part of the Note.

 

1.4           Guaranteed
Obligations Not Reduced by Offset. The Guaranteed Obligations and the liabilities and obligations of Guarantor to Lender
hereunder shall not be reduced, discharged or released because or by reason of any existing or future offset, claim or defense
of Borrower, or any other party, against Lender, or any other party, or against payment of the Guaranteed Obligations, whether
such offset, claim or defense arises in connection with the Guaranteed Obligations (or the transactions creating the Guaranteed
Obligations) or otherwise.

 

1.5           Payment
By Guarantor. If all or any part of the Guaranteed Obligations shall not be punctually paid when due, whether at demand,
maturity, acceleration or otherwise, Guarantor shall, immediately upon demand by Lender, and without presentment, protest, notice
of protest, notice of non-payment, notice of intention to accelerate the maturity, notice of acceleration of the maturity, or any
other notice whatsoever, pay in lawful money of the United States of America, the amount due on the Guaranteed Obligations to Lender
at Lender's address as set forth herein. Such demand(s) may be made at any time coincident with or after the time for payment of
all or part of the Guaranteed Obligations, and may be made from time to time with respect to the same or different items of Guaranteed
Obligations. Such demand shall be deemed made, given and received in accordance with the notice provisions hereof.

 

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1.6           No
Duty To Pursue Others. It shall not be necessary for Lender (and Guarantor hereby knowingly, freely, irrevocably and unconditionally
waives any rights which Guarantor may have to require Lender), in order to enforce the obligations of Guarantor hereunder, first
to (i) institute suit or exhaust its remedies against Borrower or others liable on the Loan or the Guaranteed Obligations or any
other Person, (ii) enforce Lender's rights against any collateral which shall ever have been given to secure the Loan, (iii) enforce
Lender's rights against any other guarantors of the Guaranteed Obligations, (iv) join Borrower or any others liable on the Guaranteed
Obligations in any action seeking to enforce this Guaranty, (v) exhaust any remedies available to Lender against any collateral
which shall ever have been given to secure the Loan, or (vi) resort to any other means of obtaining payment of the Guaranteed Obligations.
Lender shall not be required to mitigate damages or take any other action to reduce, collect or enforce the Guaranteed Obligations.

 

1.7           Waivers.
Guarantor hereby agrees to the provisions of the Loan Instruments and knowingly, freely, irrevocably and unconditionally waives
notice of (i) any loans or advances made by Lender to Borrower, (ii) acceptance of this Guaranty, (iii) any amendment or extension
of the Note, the Deed of Trust or any other Loan Instruments, (iv) the execution and delivery by Borrower and Lender of any other
loan or credit agreement or of Borrower's execution and delivery of any promissory notes or other documents arising under the Loan
Instruments or in connection with the Secured Property, (v) the occurrence of any breach by Borrower or an Event of Default (as
defined in the Deed of Trust), (vi) Lender's transfer or disposition of the Guaranteed Obligations, or any part thereof, (vii)
sale or foreclosure (or posting or advertising for sale or foreclosure) of any collateral for the Guaranteed Obligations, (viii)
protest, proof of non-payment or default by Borrower, or (ix) any other action at any time taken or omitted by Lender, and, generally,
all demands and notices of every kind in connection with this Guaranty, the Loan Instruments, any documents or agreements evidencing,
securing or relating to any of the Guaranteed Obligations and the obligations hereby guaranteed. In addition, and without limiting
any other waivers or provisions set forth in this Guaranty, Guarantor hereby knowingly, freely, irrevocably and unconditionally
waives and relinquishes all rights, remedies and defenses accorded by applicable law to guarantors and sureties, and agrees not
to assert or to otherwise take advantage of any such rights, remedies or defenses other than the actual payment and performance
of the Guaranteed Obligations. Without limiting the generality of the foregoing or of any other waivers or provisions set forth
in this Guaranty, Guarantor hereby knowingly, freely, irrevocably and unconditionally waives and relinquishes (A) any defense arising
because of an election made by Lender under Federal Bankruptcy Code (“FBC”) Section 1111(b)(2) or based on any borrowing
or grant of a security interest under FBC Section 364, (B) the defense of statute of limitations in any action hereunder or in
any action for the collection of any indebtedness or the performance of any of Borrower’s obligations under the Loan Instruments
and (C) any defense that may arise by reason of the incapacity, lack of authority, death or disability of any other person or persons,
or the failure of Lender to file or enforce a claim against the estate (in administration, bankruptcy, or any other proceeding)
of any other person or persons.

 

1.8           Payment
of Expenses. In the event that Guarantor should breach or fail to timely perform any provisions of this Guaranty, Guarantor
shall, immediately upon demand by Lender, pay Lender all costs and expenses (including, without limitation, court costs and attorneys'
fees and disbursements) incurred by Lender in the enforcement hereof or the preservation of Lender's rights hereunder. Any such
amounts not paid to Lender upon Lender’s demand therefor shall bear interest at the Increased Rate (as such term is defined
in the Note) from the date of such demand until the date such amounts are paid in full by Borrower. The covenants contained in
this Section shall survive the payment and performance of the Guaranteed Obligations.

 

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1.9           Effect
of Bankruptcy. In the event that, pursuant to any insolvency, bankruptcy, reorganization, receivership or other debtor
relief law, or any judgment, order or decision thereunder, Lender must refund or restore any payment, or any part thereof, received
by Lender in satisfaction of the Guaranteed Obligations, as set forth herein, any prior release or discharge from the terms of
this Guaranty given to Guarantor by Lender shall be without effect, and this Guaranty shall remain in full force and effect. It
is the intention of Borrower and Guarantor that Guarantor's obligations hereunder shall not be discharged except by Guarantor's
performance of such obligations and then only to the extent of such performance.

 

1.10         Waiver
of Subrogation, Reimbursement and Contribution. Notwithstanding anything to the contrary contained in this Guaranty, Guarantor
hereby unconditionally and irrevocably waives, releases and abrogates any and all rights it may now or hereafter have under any
agreement, at law or in equity (including, without limitation, any law subrogating the Guarantor to the rights of Lender), to assert
any claim against or seek contribution, indemnification or any other form of reimbursement from Borrower or any other party liable
for payment of any or all of the Guaranteed Obligations for any payment made by Guarantor under or in connection with this Guaranty
or otherwise.

 

1.11         Financial
Reporting. Guarantor will keep and maintain complete and accurate books and records of Guarantor’s earnings and financial
condition and, without expense to Lender, will furnish to Lender, within one hundred twenty (120) days after the end of each fiscal
year and within thirty (30) days after the end of each fiscal quarter of Guarantor, including the fiscal year and fiscal quarter
during which the Loan is closed, annual or quarterly, as applicable, financial statements reflecting Guarantor’s financial
position for such preceding fiscal year and fiscal quarter, as applicable, all prepared and certified by an independent certified
public accountant reasonably satisfactory to Lender, and in accordance with generally accepted accounting principles, consistently
applied, including without limitation: (i) a balance sheet of Guarantor, (ii) a statement of cash flows of Guarantor and (iii)
a profit and loss statement of Guarantor. Notwithstanding the foregoing, if the Loan is not then in default, the quarterly financial
statements may be prepared and certified by any officer or other authorized party of Guarantor.

 

1.12         Borrower.
The term "Borrower" as used herein shall include any new or successor corporation, association, partnership (general
or limited), limited liability company, joint venture, trust or other individual or organization formed as a result of any merger,
reorganization, sale, transfer, devise, gift or bequest of Borrower or any interest in Borrower. Nothing set forth herein, however,
shall constitute a consent by Lender to any merger, reorganization, sale, transfer, devise, gift, or bequest of Borrower or any
interest in Borrower, nor shall anything set forth herein diminish or affect in any manner whatsoever any of the obligations or
liabilities of Borrower under the Loan Instruments.

 

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1.13         Recourse Limitations
Do Not Apply. It is understood and agreed that the limitations of liability provided in the Note and any other Loan Instruments
shall not apply with respect to the Guarantor as to the Guaranteed Obligations and that, notwithstanding anything to the contrary
in the Note or any other Loan Instrument, Lender shall have full and personal recourse against the assets of the Guarantor as to
the Guaranteed Obligations and such limitations shall not apply for purposes of enforcing this Guaranty.

 

1.14         Guarantor’s
Claims Against Borrower. Guarantor shall file in any bankruptcy or other proceeding in which the filing of claims is required
by law all claims which Guarantor may have against Borrower relating to any indebtedness of Borrower to Guarantor and will assign
to Lender all rights of Guarantor thereunder. If Guarantor does not file any such claim, Lender, as attorney-in-fact for Guarantor,
is hereby authorized to do so in the name of Guarantor or, in Lender’s discretion, to assign the claim to a nominee and to
cause proof of claim to be filed in the name of Lender’s nominee. The foregoing power of attorney is coupled with an interest
and cannot be revoked. Lender or its nominee shall have the sole right to accept or reject any plan proposed in such proceeding
and to take any other action which a party filing a claim is entitled to do. In all such cases, whether in administration, bankruptcy
or otherwise, the person or persons authorized to pay such claim shall pay to Lender the amount payable on such claim and, to the
full extent necessary for that purpose, Guarantor hereby assigns to Lender all of Guarantor’s rights to any such payments
or distributions to which Guarantor would otherwise be entitled to the extent of the Guaranteed Obligations; provided, however,
that Guarantor’s obligations hereunder shall not be satisfied except to the extent that Lender receives cash by reason of
any such payment or distribution. If Lender receives anything hereunder other than cash, the same shall be held as collateral for
amounts due under this Guaranty.

 

1.15         Financial
Covenants. Guarantor hereby covenants and agrees that, after giving effect to this Guaranty and the obligations of Guarantor
(contingent or otherwise) evidenced by this Guaranty and the other Loan Instruments, Guarantor (a) will maintain property and assets
which, when fairly valued, exceed Guarantor’s obligations, liabilities (including contingent liabilities) and debts, and
(b) will have property and assets sufficient to satisfy and repay such obligations, liabilities and debts, each of (a) and (b)
as reasonably determined by Lender.

 

ARTICLE II

 

EVENTS AND CIRCUMSTANCES NOT REDUCING

OR DISCHARGING GUARANTOR'S OBLIGATIONS

 

Guarantor hereby consents
and agrees to each of the following, and agrees that Guarantor's obligations under this Guaranty shall not be released, diminished,
impaired, reduced or adversely affected by any of the following, and waives any common law, equitable, statutory or other rights
(including without limitation rights to notice or to be released, in whole or in part) which Guarantor might otherwise have as
a result of or in connection with any of the following:

 

2.1           Modifications.
Any renewal, extension, increase, modification, alteration or rearrangement of all or any part of the Guaranteed Obligations, the
Note, the Deed of Trust, the other Loan Instruments, or any other document, instrument, contract or understanding between Borrower
and Lender, or any other parties, pertaining to the Guaranteed Obligations or any failure of Lender to notify Guarantor of any
such action.

 

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2.2           Adjustment.
Any adjustment, indulgence, forbearance or compromise that might be granted or given by Lender to Borrower or any Guarantor.

 

2.3           Condition
of Borrower or Guarantor. The insolvency, bankruptcy, arrangement, adjustment, composition, liquidation, disability, dissolution
or lack of power of Borrower, Guarantor or any other party at any time liable for the payment of all or part of the Guaranteed
Obligations; or any dissolution of Borrower or Guarantor, or any sale, lease or transfer of any or all of the assets of Borrower
or Guarantor, or any changes in the shareholders, partners or members of Borrower or Guarantor; or any reorganization of Borrower
or Guarantor.

 

2.4           Invalidity
of Guaranteed Obligations. The invalidity, illegality or unenforceability of all or any part of the Guaranteed Obligations,
or any document or agreement executed in connection with the Guaranteed Obligations, for any reason whatsoever, including without
limitation the fact that (i) the Guaranteed Obligations, or any part thereof, exceeds the amount permitted by law, (ii) the act
of creating the Guaranteed Obligations or any part thereof is ultra vires, (iii) the officers or representatives
executing the Note, the Deed of Trust or the other Loan Instruments or otherwise creating the Guaranteed Obligations acted in excess
of their authority, (iv) the Guaranteed Obligations violate applicable usury laws, (v) the Borrower has valid defenses, claims
or offsets (whether at law, in equity or by agreement) which render the Guaranteed Obligations wholly or partially uncollectible
from Borrower, (vi) the creation, performance or repayment of the Guaranteed Obligations (or the execution, delivery and performance
of any document or instrument representing part of the Guaranteed Obligations or executed in connection with the Guaranteed Obligations,
or given to secure the repayment of the Guaranteed Obligations) is illegal, uncollectible or unenforceable, or (vii) the Note,
the Deed of Trust or any of the other Loan Instruments have been forged or otherwise are irregular or not genuine or authentic,
it being agreed that Guarantor shall remain liable hereon regardless of whether Borrower or any other Person be found not liable
on the Guaranteed Obligations or any part thereof for any reason.

 

2.5           Release
of Obligors. Any full or partial release of the liability of Borrower on the Guaranteed Obligations, or any part thereof,
or of any co-guarantors, or any other Person or entity now or hereafter liable, whether directly or indirectly, jointly, severally,
or jointly and severally, to pay, perform, guarantee or assure the payment of the Guaranteed Obligations, or any part thereof,
it being recognized, acknowledged and agreed by Guarantor that Guarantor may be required to pay the Guaranteed Obligations in full
without assistance or support of any other party, and Guarantor has not been induced to enter into this Guaranty on the basis of
a contemplation, belief, understanding or agreement that other parties will be liable to pay or perform the Guaranteed Obligations,
or that Lender will look to other parties to pay or perform the Guaranteed Obligations.

 

2.6           Other
Collateral. The taking or accepting of any other security, collateral or guaranty, or other assurance of payment, for all
or any part of the Guaranteed Obligations.

 

2.7           Release
of Collateral. Any release, surrender, exchange, subordination, deterioration, waste, loss or impairment (including without
limitation negligent, willful, unreasonable or unjustifiable impairment) of any collateral, property or security at any time existing
in connection with, or assuring or securing payment of, all or any part of the Guaranteed Obligations and any application of any
collateral, property or security to the Guaranteed Obligations in any order or manner as Lender may determine in its discretion.

 

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2.8           Care
and Diligence. The failure of Lender or any other party to exercise diligence or reasonable care in the preservation, protection,
enforcement, sale or other handling or treatment of all or any part of such collateral, property or security, including but not
limited to any neglect, delay, omission, failure or refusal of Lender (i) to take or prosecute any action for the collection of
any of the Guaranteed Obligations or (ii) to foreclose, or initiate any action to foreclose, or, once commenced, prosecute to completion
any action to foreclose upon any security therefor, or (iii) to take or prosecute any action in connection with any instrument
or agreement evidencing or securing all or any part of the Guaranteed Obligations.

 

2.9           Unenforceability.
The fact that any collateral, security, security interest or lien contemplated or intended to be given, created or granted as security
for the repayment of the Guaranteed Obligations, or any part thereof, shall not be properly perfected or created, or shall prove
to be unenforceable or subordinate to any other security interest or lien, it being recognized and agreed by Guarantor that Guarantor
is not entering into this Guaranty in reliance on, or in contemplation of the benefits of, the validity, enforceability, collectibility
or value of any of the collateral for the Guaranteed Obligations.

 

2.10         Offset.
The Note, the Guaranteed Obligations and the liabilities and obligations of the Guarantor to Lender hereunder shall not be
reduced, discharged or released because of or by reason of any existing or future right of offset, claim or defense of Borrower,
or any other party, against Lender, or any other party, or against payment of the Guaranteed Obligations, whether such right of
offset, claim or defense arises in connection with the Guaranteed Obligations (or the transactions creating the Guaranteed Obligations)
or otherwise.

 

2.11         Merger.
The reorganization, merger or consolidation of Borrower into or with any other corporation or entity.

 

2.12        Preference.
Any payment by Borrower to Lender is held to constitute a preference under bankruptcy laws, or for any reason Lender is required
to refund such payment or pay such amount to Borrower or someone else.

 

2.13         Other
Actions Taken or Omitted. Any other action taken or omitted to be taken with respect to the Loan Instruments, the Guaranteed
Obligations, or the security and collateral therefor, whether or not such action or omission prejudices Guarantor or increases
the likelihood that Guarantor will be required to pay the Guaranteed Obligations pursuant to the terms hereof, it is the unambiguous
and unequivocal intention of Guarantor that Guarantor shall be obligated to pay the Guaranteed Obligations when due, notwithstanding
any occurrence, circumstance, event, action, or omission whatsoever, whether contemplated or uncontemplated, and whether or not
otherwise or particularly described herein, which obligation shall be deemed satisfied only upon the full and final payment and
satisfaction of the Guaranteed Obligations.

 

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2.14         
Other Waivers. In addition to all the other waivers agreed to and made by Guarantor as set forth in this Guaranty,
by executing this Guaranty, Guarantor freely, irrevocably and unconditionally waives all rights and defenses that the Guarantor
may have because Borrower’s debt to Lender is secured by real property. This means, among other things: (a) Lender may collect
from Guarantor without first foreclosing on any real or personal property collateral pledges by Borrower; and (b) if Lender forecloses
on any real property collateral pledged by Borrower, the amount of the debt may be reduced only by the price for which that collateral
is sold at the foreclosure sale, even if the collateral is worth more than the sale price and Lender may collect from Guarantor
even if Lender, by foreclosing on the real property collateral, has destroyed any right Guarantor may have to collect from Borrower.
This is an unconditional and irrevocable waiver of any rights and defenses that Guarantor may have because Borrower’s debt
is secured by real property.  The Guarantor expressly waives: (i) any right to be discharged or released
in whole or in part by reason of any sale or assignment by Borrower of the collateral, or any portion thereof, whether or not consented
to by Lender and whether or not Lender has any dealings with the transferee; and (ii) any rights of the Guarantor pursuant to Tennessee
Code Annotated § 47-12-101, or any similar or subsequent law. The Guarantor further expressly waives any right or option to
be discharged or released in whole or in part by reason of any of the matters described in (i) the foregoing provisions of this
paragraph, or (ii) Article II or Sections 1.6 or 1.7 of this Guaranty.

 

ARTICLE III

 

REPRESENTATIONS
AND WARRANTIES

 

To induce Lender to enter
into the Loan Instruments and extend credit to Borrower, Guarantor represents, warrants and covenants to Lender as follows:

 

3.1           Benefit.
Guarantor is the owner of direct or indirect interests in Borrower, and has received, or will receive, direct or indirect benefit
from the making of this Guaranty with respect to the Guaranteed Obligations.

 

3.2           Familiarity
and Reliance. Guarantor is familiar with, and has independently reviewed books and records regarding the financial condition
of the Borrower and is familiar with the value of any and all collateral intended to be created as security for the payment of
the Note or Guaranteed Obligations; however, Guarantor is not relying on such financial condition or the collateral as an inducement
to enter into this Guaranty.

 

3.3           No
Representation By Lender. Neither Lender nor any other party has made any representation, warranty or statement to Guarantor
in order to induce the Guarantor to execute this Guaranty.

 

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3.4           Guarantor's
Financial Condition. The most recent financial statement of Guarantor heretofore delivered to Lender are true and correct
in all material respects, have been prepared and certified by an independent certified public accountant in accordance with generally
accepted accounting principles and fairly present the financial condition of Guarantor as of the date thereof. No material adverse
change has occurred in Guarantor’s financial condition since the date of such financial statements. As of the date hereof,
and after giving effect to this Guaranty and the contingent obligation evidenced hereby, Guarantor is, and will be, solvent, and
has and will have assets which, fairly valued, exceed Guarantor’s obligations, liabilities (including contingent liabilities)
and debts, and has and will have property and assets sufficient to satisfy and repay Guarantor’s obligations and liabilities.
In addition, (a) the Guaranteed Obligations incurred by Guarantor in connection with the Loan (and any other obligations incurred
by Guarantor in connection with the Loan) are not made or incurred with the intent to hinder, delay, or defraud any present or
future creditor of Guarantor; (b) Guarantor has not received less than reasonably equivalent value in exchange for incurring
the Guaranteed Obligations in connection with the Loan (and any other obligations incurred by Guarantor in connection with the
Loan); (c) Guarantor is solvent as of the date hereof, and Guarantor will not become insolvent as a result of incurring the Guaranteed
Obligations in connection with the Loan (and any other obligations incurred by Guarantor in connection with the Loan); (d) Guarantor
is not engaged, and Guarantor is not about to engage, in business or a transaction for which any property remaining with Guarantor
is an unreasonably small capital; (e) Guarantor has not and does not intend to incur, and Guarantor does not believe that
it will incur, debts that would be beyond Guarantor’s ability to pay as such debts mature; and (f) Guarantor is not incurring
such Guaranteed Obligations (or any other obligations incurred by Guarantor in connection with the Loan) to or for the benefit
of an insider (as defined in 11 U.S.C. § 101(31)), under an employment contract and other than in the ordinary course of business.

 

3.5           Legality.
The execution, delivery and performance by Guarantor of this Guaranty and the consummation of the transactions contemplated hereunder
do not, and will not, contravene or conflict with any law, statute or regulation whatsoever to which Guarantor is subject or constitute
a default (or an event which with notice or lapse of time or both would constitute a default) under, or result in the breach of,
any indenture, mortgage, charge, lien, or any contract, agreement or other instrument to which Guarantor is a party or which may
be applicable to Guarantor. This Guaranty is a legal and binding obligation of Guarantor and is enforceable in accordance with
its terms, except as limited by bankruptcy, insolvency or other laws of general application relating to the enforcement of creditors'
rights.

 

3.6           Survival.
All representations and warranties made by Guarantor herein shall survive the execution hereof.

 

3.7           Review
of Documents. Guarantor has examined the Note and all of the Loan Instruments.

 

3.8        Litigation.
There are no proceedings pending or, so far as Guarantor knows, threatened before any court or administrative agency which would
affect the authority of Guarantor to enter into, or the validity or enforceability of this Guaranty or which if decided adversely
to Guarantor would materially adversely affect the financial condition of Guarantor.

 

3.9           Tax
Returns. Guarantor has filed or will file on a timely basis all required federal, state and local tax returns and has paid
all taxes as shown on such returns as they have become due. No claims have been assessed and are unpaid with respect to such taxes.

 

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3.10      Blocked
Person. Guarantor is and shall remain in compliance with the requirements of Executive Order 13224 of September 23, 2001
“Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism”
(66 Fed. Reg. 49079 (2001)) (the “Order”) and other similar requirements contained in the rules and regulations of
the Office of Foreign Assets Control, Department of the Treasury (“OFAC”) and in any enabling legislation or other
executive orders or regulations in respect thereof (the Order and such other rules regulations, legislation or orders are referred
to hereinafter, collectively, as the “Orders”). Without limiting the generality of the foregoing, neither Guarantor,
nor any subsidiary or affiliate of Guarantor, nor any member, partner or shareholder or other beneficial owner of Guarantor or
of any such subsidiary, affiliate, member, partner, shareholder or other beneficial owner (i) is listed on the Specially Designated
Nationals and Blocked Persons List maintained by OFAC pursuant to the Order and/or on any other list of terrorists or terrorist
organizations maintained pursuant to any of the rules and regulations of OFAC or pursuant to any other applicable Orders, (ii)
is or will become a “blocked person” described in Section 1 of the Order or (iii) knowingly engages or will engage
in any dealings or transactions, or is or will be otherwise associated, with any such blocked person. Guarantor shall promptly
notify Lender should Guarantor become aware of any information which would render untrue any of the representations, warranties
or covenants set forth in this Section 3.10.

 

ARTICLE IV

 

SUBORDINATION OF CERTAIN INDEBTEDNESS

 

4.1           Subordination
of All Guarantor Claims. As used herein, the term "Guarantor Claims" shall mean all debts and liabilities of
Borrower to Guarantor, whether such debts and liabilities now exist or are hereafter incurred or arise, or whether the obligations
of Borrower thereon be direct, contingent, primary, secondary, several, joint and several, or otherwise, and irrespective of whether
such debts or liabilities be evidenced by note, contract, open account, or otherwise, and irrespective of the Person or Persons
in whose favor such debts or liabilities may, at their inception, have been, or may hereafter be created, or the manner in which
they have been or may hereafter be acquired by Guarantor. The Guarantor Claims shall include without limitation all rights and
claims of Guarantor against Borrower (arising as a result of subrogation or otherwise) as a result of Guarantor’s payment
of all or a portion of the Guaranteed Obligations. Upon the occurrence of an Event of Default or the occurrence of an event which
would, with the giving of notice or the passage of time, or both, constitute an Event of Default, Guarantor shall not receive or
collect, directly or indirectly, from Borrower or any other party any amount upon the Guarantor Claims unless and until Lender
accepts in writing, in Lender’s sole discretion, a cure of such Event of Default.

 

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WCSR 31223455
	10	 

    	 

    

 

4.2           Claims
in Bankruptcy. In the event of receivership, bankruptcy, reorganization, arrangement, debtor's relief, or other insolvency
proceedings involving Guarantor as debtor, Lender shall have the right to prove its claim in any such proceeding so as to establish
its rights hereunder and receive directly from the receiver, trustee or other court custodian dividends and payments which would
otherwise be payable upon Guarantor Claims. Guarantor hereby assigns such dividends and payments to Lender. Should Lender receive,
for application upon the Guaranteed Obligations, any such dividend or payment which is otherwise payable to Guarantor, and which,
as between Borrower and Guarantor, shall constitute a credit upon the Guarantor Claims, then upon payment to Lender in full of
the Guaranteed Obligations, Guarantor shall become subrogated to the rights of Lender to the extent that such payments to Lender
on the Guarantor Claims have contributed toward the liquidation of the Guaranteed Obligations, and such subrogation
shall be with respect to that proportion of the Guaranteed Obligations which would have been unpaid if Lender had not received
dividends or payments upon the Guarantor Claims.

 

4.3           Payments
Held in Trust. In the event that, notwithstanding anything to the contrary in this Guaranty, Guarantor should receive any
funds, payment, claim or distribution which is prohibited by this Guaranty, Guarantor agrees to hold in trust for Lender an amount
equal to the amount of all funds, payments, claims or distributions so received, and agrees that it shall have absolutely no dominion
over the amount of such funds, payments, claims or distributions so received except to pay them promptly to Lender, and Guarantor
covenants promptly to pay the same to Lender.

 

4.4           Liens
Subordinate. Guarantor agrees that any liens, security interests, judgment liens, charges or other encumbrances upon Borrower's
assets securing payment of the Guarantor Claims shall be and remain inferior and subordinate to any liens, security interests,
judgment liens, charges or other encumbrances upon Borrower's assets securing payment of the Guaranteed Obligations, regardless
of whether such encumbrances in favor of Guarantor or Lender presently exist or are hereafter created or attach. Without the prior
written consent of Lender, Guarantor shall not (i) exercise or enforce any creditor's right it may have against Borrower, or (ii)
foreclose, repossess, sequester or otherwise take steps or institute any action or proceedings (judicial or otherwise, including
without limitation the commencement of, or joinder in, any liquidation, bankruptcy, rearrangement, debtor's relief or insolvency
proceeding) to enforce any liens, mortgages, deeds of trust, security interests, collateral rights, judgments or other encumbrances
on assets of Borrower held by Guarantor except and until and to the extent the Guaranteed Obligations are paid in full. Nothing
set forth in this Section 4.4 is intended or shall be construed as the permitting of or the granting by Lender of its consent to
the creation or existence of any liens, security interests, judgment liens, charges or other encumbrances upon Borrower's assets
or the Secured Property.

 

ARTICLE V

 

MISCELLANEOUS

 

5.1           Waiver.
No failure to exercise, and no delay in exercising, on the part of Lender, any right hereunder shall operate as a waiver thereof,
nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right.
The rights of Lender hereunder shall be in addition to all other rights provided by law. No modification or waiver of any provision
of this Guaranty, nor consent to departure therefrom, shall be effective unless in writing and no such consent or waiver shall
extend beyond the particular case and purpose involved. No notice or demand given in any case shall constitute a waiver of the
right to take other action in the same, similar or other instances without such notice or demand.

 

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WCSR 31223455
	11	 

    	 

    

 

5.2           Notices.
All notices and demands or other communications hereunder shall be in writing, and shall be deemed to have been sufficiently given
or served for all purposes when presented personally or sent by generally recognized overnight delivery service, with postage prepaid,
addressed to Guarantor or Lender, as applicable, at the address stated below, or at such other address of which either Guarantor
or Lender may hereafter notify the other in writing:

 

Guarantor:

 

Trade Street Operating
Partnership, LP

Trade Street Residential,
Inc.

19950 West Country Club
Drive, Suite 800

Aventura,
Florida 33180

Attn: Richard Ross

 

with a copy to:

 

Greenspoon Marder

100 W. Cypress
Creek Road, Suite 700

Fort Lauderdale,
FL 33309

Attn: Barry Somerstein,
Esq.

 

Lender:

 

NEW YORK LIFE INSURANCE
COMPANY

c/o New York Life Investment
Management LLC

51 Madison Avenue

New York, New York 10010-1603

Attn:     Real Estate
Group

Director - Loan Administration
Division

Loan No. : 374-0518

 

with a copy to:

 

NEW YORK LIFE INSURANCE
COMPANY

Office of the General
Counsel

51 Madison Avenue

New York, New York 10010-1603

Attn:Managing Director
- Real Estate Section

Loan No. 374-0518

 

Each notice or demand so given or served
shall be deemed given and effective (a) if personally delivered, on the day of actual delivery or refusal and (b) if sent by generally
recognized overnight delivery service, on the next business day. Notwithstanding the foregoing, service of any notice of default
provided or required by law shall, if mailed as required by law, be deemed given and effective on the date of mailing.

 

    	Loan No. 374-0518
WCSR 31223455
	12	 

    	 

    

 

5.3           Governing
Law. This Guaranty shall be governed by and construed in accordance with the laws of the State in which the real property
encumbered by the Deed of Trust is located and the applicable laws of the United States of America and, in connection with any
action or proceeding arising out of or relating to this Guaranty, Guarantor hereby submits to the jurisdiction of any court of
competent jurisdiction located in such State.

 

5.4           Invalid
Provisions. If any provision of this Guaranty is held to be illegal, invalid, or unenforceable under present or future
laws effective during the term of this Guaranty, such provision shall be fully severable and this Guaranty shall be construed and
enforced as if such illegal, invalid or unenforceable provision had never comprised a part of this Guaranty, and the remaining
provisions of this Guaranty shall remain in full force and effect and shall not be affected by the illegal, invalid or unenforceable
provision or by its severance from this Guaranty, unless such continued effectiveness of this Guaranty, as modified, would be contrary
to the basic understandings and intentions of the parties as expressed herein.

 

5.5           Amendments.
This Guaranty may be amended only by an instrument in writing executed by the party or an authorized representative of the party
against whom such amendment is sought to be enforced.

 

5.6           Parties
Bound; Assignment; Joint and Several. This Guaranty shall be binding upon and inure to the benefit of the parties hereto
and their respective successors, assigns and legal representatives; provided, however, that Guarantor may not, without the prior
written consent of Lender, assign any of Guarantor’s rights, powers, duties or obligations hereunder. If Guarantor consists
of more than one Person, the obligations and liabilities of each such Person shall be joint and several.

 

5.7           Headings.
Section headings are for convenience of reference only and shall in no way affect the interpretation of this Guaranty.

 

5.8           Recitals.
The recital and introductory paragraphs hereof are a part hereof, form a basis for this Guaranty and shall be considered prima
facie evidence of the facts and documents referred to therein.

 

5.9           Counterparts.
To facilitate execution, this Guaranty may be executed in as many counterparts as may be convenient or required. It shall not be
necessary that the signature of, or on behalf of, each party, or that the signature of all Persons required to bind any party,
appear on each counterpart. All counterparts shall collectively constitute a single instrument. It shall not be necessary in making
proof of this Guaranty to produce or account for more than a single counterpart containing the respective signatures of, or on
behalf of, each of the parties hereto. Any signature page to any counterpart may be detached from such counterpart without impairing
the legal effect of the signatures thereon and thereafter attached to another counterpart identical thereto except having attached
to it additional signature pages.

 

    	Loan No. 374-0518
WCSR 31223455
	13	 

    	 

    

 

5.10         Rights
and Remedies. If Guarantor becomes liable for any indebtedness owing by Borrower to Lender, by endorsement or otherwise,
other than under this Guaranty, such liability shall not be in any manner impaired or affected hereby and the rights of Lender
hereunder shall be cumulative of any and all other rights that Lender may ever have against Guarantor. The exercise by Lender of
any right or remedy hereunder or under any other instrument, or at law or in equity, shall not preclude the concurrent or subsequent
exercise of any other right or remedy.

 

5.11         Other
Defined Terms. Any capitalized term utilized herein shall have the meaning as specified in the Deed of Trust, unless such
term is otherwise specifically defined herein.

 

5.12         Entirety.
THIS GUARANTY EMBODIES THE FINAL, ENTIRE AGREEMENT OF GUARANTOR AND LENDER WITH RESPECT TO GUARANTOR'S GUARANTY OF THE GUARANTEED
OBLIGATIONS AND SUPERSEDES ANY AND ALL PRIOR COMMITMENTS, AGREEMENTS, REPRESENTATIONS, AND UNDERSTANDINGS, WHETHER WRITTEN OR ORAL,
RELATING TO THE SUBJECT MATTER HEREOF. THIS GUARANTY IS INTENDED BY GUARANTOR AND LENDER AS A FINAL AND COMPLETE EXPRESSION OF
THE TERMS OF THIS GUARANTY, AND NO COURSE OF DEALING BETWEEN GUARANTOR AND LENDER, NO COURSE OF PERFORMANCE, NO TRADE PRACTICES,
AND NO EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OR DISCUSSIONS OR OTHER EXTRINSIC EVIDENCE OF ANY NATURE
SHALL BE USED TO CONTRADICT, VARY, SUPPLEMENT OR MODIFY ANY TERM OF THIS GUARANTY AGREEMENT. THERE ARE NO ORAL AGREEMENTS BETWEEN
GUARANTOR AND LENDER.

 

5.13         Waiver
of Right To Trial By Jury. GUARANTOR HEREBY AGREES NOT TO ELECT A TRIAL BY JURY OF ANY ISSUE TRIABLE OF RIGHT BY JURY,
AND, TO THE EXTENT NOT PROHIBITED BY LAW, WAIVES ANY RIGHT TO TRIAL BY JURY FULLY TO THE EXTENT THAT ANY SUCH RIGHT SHALL NOW OR
HEREAFTER EXIST WITH REGARD TO THIS GUARANTY, THE NOTE, THE DEED OF TRUST, OR THE OTHER LOAN INSTRUMENTS, OR ANY CLAIM, COUNTERCLAIM
OR OTHER ACTION ARISING IN CONNECTION THEREWITH. THIS WAIVER OF RIGHT TO TRIAL BY JURY IS GIVEN KNOWINGLY AND VOLUNTARILY BY GUARANTOR,
AND IS INTENDED TO ENCOMPASS INDIVIDUALLY EACH INSTANCE AND EACH ISSUE AS TO WHICH THE RIGHT TO A TRIAL BY JURY WOULD OTHERWISE
ACCRUE. LENDER IS HEREBY AUTHORIZED TO FILE A COPY OF THIS PARAGRAPH IN ANY PROCEEDING AS CONCLUSIVE EVIDENCE OF THIS WAIVER BY
GUARANTOR.

 

[Signature Page Follows]

 

    	Loan No. 374-0518
WCSR 31223455
	14	 

    	 

    

 

[Signature Page –
Guaranty]

 

EXECUTED as of the day
and year first above written.

 

	 	GUARANTOR:
	 	 
	 	TRADE STREET OPERATING PARTNERSHIP, LP, 
	 	a Delaware limited partnership (SEAL)
	 	 	 	 	 	 
	 	By:	Trade Street OP GP, LLC, a Delaware limited
	 	 	liability company, its general partner (SEAL)
	 	 	 	 	 	 
	 	 	By:	Trade Street Residential, Inc., a Maryland
	 	 	 	corporation, its sole member (SEAL)
	 	 	 	 	 	 
	 	 	 	By:	/s/ Richard Ross	(SEAL)
	 	 	 	Name:	Richard Ross
	 	 	 	Title:	Chief Financial Officer

 

	STATE OF FLORDIA	)	 
	COUNTY OF MIAMI DADE	)	 

 

Before me, the undersigned,
a Notary Public in and for the County and State aforesaid, personally appeared Richard Ross, with whom I am personally acquainted
(or proved to me on the basis of satisfactory evidence), and who upon oath acknowledged himself to be Chief Financial Officer of
Trade Street Residential, Inc., a Maryland corporation, which is the sole member of Trade Street OP GP, LLC, a Delaware limited
liability company, which is the general partner of Trade Street Operating Partnership, LP, a Delaware limited partnership, the
within named bargainor, and that he/she, as such Chief Financial Officer, being authorized so to do, executed the foregoing instrument
for the purposes therein contained, by signing the name of the limited partnership by himself as Chief Financial Officer of Trade
Street Residential, Inc., which is the sole member of the Trade Street OP GP, LLC, which is the general partner of Trade Street
Operating Partnership, LP.

 

Witness my hand and seal,
this the 6th day of January, 2014.

 

	 	 	/s/ Rachael Petters
	 	 	NOTARY PUBLIC
	My Commission Expires:	 	 
	 	 	[Notarial Seal]
	August 2, 2014	 	 
	Commission # EE013802	 	 

 

    	Loan No. 374-0518
WCSR 31223455
	 	 

    	 

    

 

[Signature Page –
Guaranty]

 

	 	TRADE STREET RESIDENTIAL, INC., 
	 	a Maryland corporation	(SEAL)
	 	 	 	 	 
	 	 	By:	/s/ Richard Ross	 (SEAL)
	 	 	Name:	Richard Ross
	 	 	Title:	Chief Financial Officer

 

	STATE OF FLORDIA	)	 
	COUNTY OF MIAMI DADE	)	 

 

Before me, the undersigned,
a Notary Public in and for the County and State aforesaid, personally appeared Richard Ross, with whom I am personally acquainted
(or proved to me on the basis of satisfactory evidence), and who upon oath acknowledged himself to be Chief Financial Officer of
Trade Street Residential, Inc., a Maryland corporation, which is the sole member of Trade Street OP GP, LLC, a Delaware limited
liability company, which is the general partner of Trade Street Operating Partnership, LP, a Delaware limited partnership, the
within named bargainor, and that he/she, as such Chief Financial Officer, being authorized so to do, executed the foregoing instrument
for the purposes therein contained, by signing the name of the limited partnership by himself as Chief Financial Officer of Trade
Street Residential, Inc., which is the sole member of the Trade Street OP GP, LLC, which is the general partner of Trade Street
Operating Partnership, LP.

 

Witness my hand and seal,
this the 6th day of January, 2014.

 

	 	 	/s/ Rachael Petters
	 	 	NOTARY PUBLIC
	My Commission Expires:	 	 
	 	 	[Notarial Seal]
	August 2, 2014	 	 
	Commission # EE013802	 	 

 

    	Loan No. 374-0518
WCSR 31223455Exhibit 10.8

  

PURCHASE AND SALE AGREEMENT

 

PROPERTY:

 

Estates at Wakefield
Apartments

30 acres located on
Caveness Farms Avenue

Wake Forest, Wake County,
North Carolina

 

SELLER:

 

WAKE FOREST APARTMENTS
LLC,

a North Carolina limited
liability company

 

BUYER:

 

TRADE STREET OPERATING
PARTNERSHIP, LP,

a Delaware limited
partnership

 

    	 

    	 

    

 

 

PURCHASE AND SALE AGREEMENT

 

THIS PURCHASE AND SALE
AGREEMENT (this “Agreement”) is made and entered into as of the 29th day of October, 2012 (“Date of
Agreement”) by and between WAKE FOREST APARTMENTS LLC, a North Carolina limited liability company (“Seller”)
and TRADE STREET OPERATING PARTNERSHIP, LP, a Delaware limited partnership (“Buyer”), with reference
and respect to the following facts and circumstances:

 

A.           Seller
is the owner of the Property described and defined hereinbelow;

 

B.           Seller
desires to develop the Property as multi-family apartments and sell such improved Property to Buyer; and

 

C.           Buyer
desires to purchase the Property from Seller.

 

NOW, THEREFORE, in
consideration of the foregoing premises, the promises, covenants, agreements, representations and warranties set forth herein,
and other good and valuable consideration, the receipt and sufficiency of which are acknowledged by each of the parties, the parties
do hereby agree as follows:

 

ARTICLE
1: BASIC TERMS/PROPERTY

 

1.1.          Certain
Basic Terms.   For the purposes of this Agreement, the following terms shall have the definition and/or meaning indicated.

 

1.1.1.          “Purchase
Price”:    Thirty-Seven Million Two Hundred Fifty Thousand and No/100 Dollars ($37,250,000.00).

 

1.1.2.          “Earnest
Money”:     The Initial Deposit and the Final Deposit (as such terms are defined and described in Section 1.3 below),
the Closing Extension Deposit (as defined in Section 5.1 below) if applicable, plus (except as otherwise provided in this
Agreement) interest accrued thereon and any additions thereto. Each reference to the Earnest Money in this Agreement shall mean
the entire Earnest Money (or so much of it as has been deposited with Escrow Holder by or for the benefit of Buyer, from time to
time, as appropriate) plus interest earned thereon.

 

1.1.3.          “Initial
Inspection Period”:     The period beginning on the Date of Agreement and ending on the day forty-five (45) days thereafter.

 

1.1.4.          “Closing
Date”:       Twenty (20) days following issuance of the Final Certificate of Occupancy with respect to the Improvements (as
hereafter defined), as may be extended by Buyer in accordance with Section 5.1.

 

1.1.5.          “Outside
Completion Date”:     December 31, 2013; provided, the Outside Completion Date shall be extended by one (1) day for each
day that any event of Force Majeure delays the issuance of the Final Certificate of Occupancy, but in no event shall the Outside
Completion Date be extended later than March 31, 2014.

 

1.1.6.          
“Title Company”: Fidelity Title Insurance Company (see Section 8.11 for address and other contact information).

 

    	 

    	 

    

  

1.1.7.          “Escrow
Holder”: Fidelity Title Insurance Company (see Section 8.11 for address and contact information).

 

1.1.8.          
“Final Inspection”:    The final inspection for a portion of the Project as described (and as defined) in Section
2.2.5.

 

1.1.9.          “Final
Certificate of Occupancy”:    The final certificate of occupancy with respect to the entire Project issued by the governmental
body having jurisdiction over the Property in connection with the construction, development, improvement, maintenance, use or operation
thereof, which certificate is final or which certificate has, as its only condition, the completion of out-of-season landscaping,
and any other governmental approval required, if any, to allow Seller to occupy and use the Project for the purpose for which the
same is intended to be used. The parties acknowledge and agree that, if such landscaping condition is not satisfied prior to the
Closing, Seller shall nonetheless be responsible and liable for the same, and Seller’s obligations, liabilities and duties
regarding such landscaping shall survive the Closing or, at Buyer’s option, Buyer shall be entitled to receive a credit for
such landscaping at Closing.

 

1.1.10.         “Required
Standard”:   A level of care, workmanship, completion and quality with respect to the Work and Improvements (as hereafter
defined), which complies with each of the following conditions and/or standards: (1) in accordance with the professional skill
and care ordinarily provided by architects practicing in the same or similar locality under the same or similar circumstances,
and who have experience on projects of a similar size, character and budget; (2) in accordance and compliance with all contract
documents regarding the construction of the Improvements, in all material respects, including, without limitation, no material
deviations from the Plans and Specifications (as hereafter defined), as may be changed, modified or supplemented in accordance
with the terms of Sections 2.5 and 2.6 below; and (3) in accordance and compliance with any and all applicable laws,
statutes, ordinances (including, without limitation, zoning ordinances), building codes, rules and regulations, as well as permits
and licenses related to or governing the construction, operation or maintenance of the Improvements. The Required Standard shall
be based upon the Plans and Specifications and a determination by Buyer and Seller of the Open Design Items in accordance with
Section 2.5 below.

 

1.1.11.         “Plans
and Specifications”:    All construction plans and specifications created in contemplation of the development of the Property,
including, without limitation, the construction and/or development of the Improvements (collectively, “Plans and Specifications”),
as referenced on Exhibit E attached hereto and as provided to Buyer at least fifteen (15) business days prior to
the expiration of the Initial Inspection Period, subject to the finalization of the Open Design Items (as defined and described
in Section 2.5 below), as same may be changed, modified or supplemented in accordance with the terms of Section 2.6
below. As used in the Agreement, the term “Plans and Specifications” shall also mean and include (i) the plans (including
bid plans) and specifications for the Property, including, without limitation, specifications for the Improvements, any drawings
that have been prepared by the Project Architect or other professionals before or during completion of development and construction
on the Property and which reflect or are intended to reflect the Improvements, any architectural, structural, mechanical, electrical,
and landscaping plans and specifications, surveys, engineering as well as the soil studies and reports, applicable flood plain
maps and reports relating to the Property; (ii) copies of any construction and development plans and specifications used in connection
with the construction and development of the Property, civil engineering plans for the site grading and drainage of the Property,
as well as all change orders or other documents arising out of, relating to or referencing modifications made to the same; and
(iii) all design drawings, plans, specifications and civil or other engineering documents, if any, relating to any proposed detention
pond(s) at the Property.

 

    	2

    	 

    

 

1.1.12.         “Work”
  means and comprises design, coordination, services and the completed construction required by this Agreement and includes all
management, supervision, labor, materials, equipment and things necessary to produce such design and construction, and all
materials and equipment incorporated or to be incorporated in such construction, and also includes the acquisition and installation
of Tangible Personal Property to be included in the Project.

 

1.1.13.         “Design
Rights”:    means all rights, titles and interests of Seller in and to all plans, specifications, drawings, schedules, photographs,
renderings, graphics, models and other items produced by or otherwise resulting from the performance of services with respect to
the Project by the Project Architect, Seller and/or any engineer, designer or other consultant engaged by either Seller or the
Project Architect in connection with the Project, including, but not limited to, any and all common law, statutory, and other intellectual
property rights and interests of Seller therein or thereto.

 

1.1.14.         “Costs
of the Project”:  means the costs necessarily incurred in the design and construction of the Project as more fully described
in Article 2 hereof.

 

1.1.15.         “Project
Architect”:  means Watts Leaf Architects or such other architect as may be designated by Seller and approved by Buyer.

 

1.1.16.         “Force
Majeure”:   means occurrences beyond the reasonable control of Seller or its agents, employees, contractors, subcontractors
and consultants, including, but not limited to, acts of God, expropriation or confiscation of facilities by governmental authorities,
compliance with any order or request of any governmental authority, floods, strikes, labor or employment difficulties, delays in
transportation, inability of a party to obtain necessary materials or equipment or permits due to existing or future laws, rules
or regulations of governmental authorities not in effect as of this Agreement, any governmental moratorium on issuing any necessary
governmental approvals, acts of threats of terrorism, war or any other causes not within the reasonable control of Seller or its
agents, employees, contractors, subcontractors and consultants.

 

1.1.17.         “Development
Budget”:   means the development budget for the construction of the Project as referenced on Exhibit I attached
hereto and as provided to Buyer at least ten (10) business days prior to the expiration of the Initial Inspection Period, as same
may be changed, modified or supplemented with the prior written consent of Buyer, in its sole discretion (provided, Buyer’s
consent shall not be required for any reallocations of line item cost savings or contingency under the Development Budget on a
percentage-of-completion basis in accordance with the terms of the loan documents for Seller’s development financing, so
long as such reallocations do not increase the costs to Buyer in connection with any Buyer-initiated changes to Open Design Items
under Section 2.5 or any Buyer-initiated Change Orders under Section 2.6).

 

    	3

    	 

    

 

1.2.          Property.
    In accordance with the terms and conditions of this Agreement, Seller agrees to sell to Buyer, and Buyer agrees to purchase from
Seller, the following property (collectively, the “Property”):

 

1.2.1.          The
“Real Property,”   being the land described in Exhibit A attached hereto, which is 30 acres located
along Caveness Farms Avenue in Wake Forest, Wake County, North Carolina, and will include eleven (11) buildings containing a total
of two hundred eighty-eight (288) residential units, together with (i) all other buildings, structures, parking areas, sidewalks
landscaping and improvements located thereon (collectively with the buildings, the “Improvements”), (ii) all
and singular the rights, benefits, privileges, easements, tenements, hereditaments, and appurtenances thereon or in anywise appertaining
to the Real Property, and (iii) all right, title, and interest of Seller in and to all strips and gores and any land lying in the
bed of any street, road or alley, open or proposed, adjoining such real property. The Improvements which are to be constructed
upon the Real Property shall be designed and constructed as part of an integrated multi-family apartment complex/community known
as “Estates at Wakefield” (the “Project”) in accordance with the Plans and Specifications, as may
be changed, modified or supplemented in accordance with the terms of Section 2.6 below.

 

1.2.2.          Seller’s
interest as landlord in the “Leases,”    being all leases of the Improvements, including leases which may be made
by Seller after the date hereof and prior to Closing as permitted by this Agreement (and any one of said Leases may hereinafter
be referred to as a “Lease”).

 

1.2.3.          The
“Tangible Personal Property,”   being all furniture, furnishings, fixtures, equipment, appliances, supplies, construction
materials, machinery, signage and other tangible personal property owned by Seller, if any, and Seller’s interest in any
such property leased by Seller, if any, now or hereafter located in and used exclusively in connection with the operation, ownership
or management of the Real Property or which is required to be included in the Project pursuant to the terms hereof. During the
Initial Inspection Period, Seller and Buyer shall agree on the tangible personal property that will be conveyed at Closing consistent
with the Required Standard.

 

1.2.4.          Seller’s
interest in the “Intangible Personal Property,”  being all intangible personal property owned by Seller and related
to the Real Property or which is required to be included in the Project pursuant to the terms hereof, including, without limitation,
the following: the Design Rights, the Plans and Specifications and other architectural and engineering drawings for the Improvements,
if any, to the extent assignable; warranties, if any, in the possession of Seller or Seller’s property or asset manager,
to the extent assignable; contract rights, if any, related to the construction, operation, ownership, or management of the Real
Property, the Improvements or the Project (to the extent assignable, but excluding Seller’s obligations thereunder except
those expressly assumed pursuant to this Agreement); government permits, approvals and licenses (to the extent assignable); telephone
exchange numbers (to the extent assignable); and tradenames (including, without limitation, the name “Estates at Wakefield”),
trademarks, servicemarks, website domains, and advertising materials used in connection with the Project (to the extent assignable).
The Intangible Personal Property shall exclude the name “Woodfield” or any variation thereof.

 

    	4

    	 

    

 

1.3.          Earnest
Money.     Buyer is to deposit the Earnest Money as follows: (a) Within two (2) business days after execution and delivery of
this Agreement by the parties, Buyer shall deposit the amount of One Hundred Fifty Thousand and No/100 Dollars ($150,000.00) (the
“Initial Deposit”) with Escrow Holder; and (b) if this Agreement has not been terminated prior to the expiration
of the Initial Inspection Period, within two (2) business days following the expiration of the Initial Inspection Period, Buyer
shall deposit the additional amount of Six Hundred Thousand and No/100 Dollars ($600,000.00) (the “Final Deposit”)
with Escrow Holder. Escrow Holder shall pay the Earnest Money plus the interest earned thereon (i) to Seller at and upon the Closing
(and credit the same toward the payment of the Purchase Price) or (ii) otherwise to the party entitled to receive the Earnest
Money in accordance with this Agreement. However, unless and until the Closing occurs under this Agreement, the Earnest Money
shall be held and disbursed by Escrow Holder pursuant to this Agreement which shall also serve as escrow instructions to Escrow
Holder. Escrow Holder’s acceptance of the instructions and agreement to act in accordance with the same shall be evidenced
by Escrow Holder’s execution of this Agreement in the space provided at the end of this Agreement. The Earnest Money (and
each and every part thereof) shall be held in a federally insured interest bearing account in a financial institution acceptable
to Buyer under Buyer’s tax identification number with any fees of the Escrow Holder to be split equally by Buyer and Seller.

 

1.4.          Liquidated
Damages.       IF ALL OF THE CONDITIONS TO BUYER’S OBLIGATION TO PURCHASE THE PROPERTY HAVE BEEN SATISFIED OR WAIVED IN WRITING
BY BUYER AND IF BUYER SHOULD FAIL TO CONSUMMATE THIS TRANSACTION FOR ANY REASON OTHER THAN SELLER’S DEFAULT, FAILURE OF
A CONDITION TO BUYER’S OBLIGATION TO CLOSE, OR THE EXERCISE BY BUYER OF AN EXPRESS RIGHT OF TERMINATION GRANTED HEREIN,
SELLER’S SOLE REMEDY IN SUCH EVENT SHALL BE TO TERMINATE THIS AGREEMENT AND TO RECEIVE AND RETAIN THE EARNEST MONEY (OR
SO MUCH OF IT AS HAS BEEN DEPOSITED BY SELLER WITH ESCROW HOLDER), INCLUDING THE INTEREST EARNED THEREON, AS LIQUIDATED DAMAGES,
SELLER WAIVING ALL OTHER RIGHTS OR REMEDIES IN THE EVENT OF SUCH DEFAULT BY BUYER. THE PARTIES ACKNOWLEDGE THAT SELLER’S
ACTUAL DAMAGES IN THE EVENT OF A DEFAULT BY BUYER UNDER THIS AGREEMENT WILL BE EXTREMELY DIFFICULT AND IMPRACTICABLE TO ASCERTAIN,
AND THAT SUCH LIQUIDATED DAMAGES REPRESENT THE PARTIES’ BEST ESTIMATE OF SUCH DAMAGES AND ARE FAIR AND REASONABLE UNDER
ALL OF THE EXISTING CIRCUMSTANCES.

 

1.5.          Architectural
Arbitration.      In the event that Seller disputes any allegation by Buyer of non-compliance with the Required Standards, Seller
shall notify Buyer of such dispute (i.e., Seller shall provide to Buyer a “Dispute Notice” within ten
(10) business days of Seller’s receipt of Buyer’s Non-Compliance Notice (as defined in Section 2.2.5 below), and Buyer
and Seller agree to submit such issues for architectural arbitration a neutral third party (“Arbitrator”) who
is a North Carolina-licensed architect with at least fifteen (15) years of experience in the design, development and construction
of multifamily residences in the Wake County, North Carolina area, and which Arbitrator is mutually agreed upon by Seller and
Buyer (within ten (10) business days of Buyer’s receipt of the Dispute Notice), or if they cannot agree then on the Arbitrator,
the Arbitrator (who must have the same qualifications) shall be selected by the Charlotte, North Carolina office of the American
Arbitration Association within thirty (30) days after the expiration of the aforementioned ten (10) business days prior
(collectively, the “Arbitration Panel”), and Seller and Buyer agree to abide by such Arbitrator’s decisions
on such matters. The Arbitrator will be instructed to make its determination within sixty (60) days following the submission of
the matter to arbitration (which submission shall occur within thirty (30) days of the selection of Arbitrator). The costs of
arbitration will be borne equally by Seller and Buyer; and the Closing Date shall be extended to the extent reasonably necessary,
but only to the extent reasonably necessary to accommodate any such arbitration and the acts of the parties which are necessitated
by the results of the arbitration.

 

    	5

    	 

    

 

ARTICLE
2:INSPECTION

 

2.1.          Seller’s
Delivery of Specified Documents.   Within five (5) business days after the Date of Agreement (or as otherwise specifically provided
hereinbelow), Seller shall provide to Buyer copies of all written materials with respect to the Property in Seller’s
possession or reasonable control, including, but not limited to, leases, contracts, reports, studies, surveys, plans, tax bills,
environmental reports, construction contracts, architectural contracts, design contracts, site surveys, geotechnical and hydrological
studies, zoning reports, governmental permits and approvals, existing title policies, and soils and engineering reports, if any;
provided, however, Seller shall not be required to provide, and Buyer shall not be entitled to review, any internal
partnership or organizational information or materials of Seller, any memoranda or correspondence from Seller to any of the members
of Seller or Seller’s lender, or any other proprietary or confidential information, including financial information relating
to the acquisition of the Real Property (collectively, the “Property Information”). Seller hereby covenants
and agrees to promptly provide Buyer with any Property Information that comes into Seller’s possession after the Date of
Agreement, which is produced by Seller, required to be produced by Seller or updated after the initial deliveries above and shall
continue to provide same during the pendency of this Agreement.

 

2.2.          Due
Diligence.

 

2.2.1.          Initial
Inspection Period.    Buyer shall have through the last day of the Initial Inspection Period in which to examine, inspect and
investigate the Property and, in Buyer’s sole and absolute judgment and discretion, to determine whether the Property, Property
Information and the Plans and Specifications are acceptable to Buyer. Notwithstanding anything to the contrary in this Agreement,
Buyer may terminate this Agreement for any reason or no reason by giving notice of termination to Seller on or before the last
day of the Initial Inspection Period. If Buyer does not give the notice of termination, this Agreement shall continue in full force
and effect, and the Earnest Money thereafter shall be non-refundable except as otherwise provided in this Agreement. If this Agreement
is terminated on or before the last day of the Initial Inspection Period pursuant to this Section 2.2.1, the Earnest Money
shall be refunded to Buyer immediately upon request, less the sum of $100.00, which Escrow Holder shall disburse to Seller as Seller’s
sole consideration hereunder; and, subject to the provisions of Section 8.15.1, all further rights and obligations of the
parties under this Agreement shall terminate. If Buyer does not terminate this Agreement during the Initial Inspection Period,
the specific exceptions to coverage specified in Schedule B, Section 2 in the Title Commitment (as defined in Section 3.1)
which are not objected to by Buyer pursuant to Section 3.2.2, as of the expiration of the Initial Investigation Period shall
be deemed Permitted Exceptions (as defined in Section 3.2.1) consented to, authorized and approved by Buyer, subject to
the terms of Section 3.2.3.

 

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2.2.2.          Access
and Indemnity.    During the pendency of this Agreement, Buyer shall have reasonable access to the Property for the purpose of
conducting, at Buyer’s sole expense, surveys, architectural, engineering, geotechnical, and environmental inspections and
tests, and any other inspections, studies, or tests reasonably required by Buyer, provided that Buyer shall not interfere with
the construction of any Improvements in connection therewith. Buyer shall keep the Property free and clear of any liens incurred
by or on behalf of Buyer or any other party in connection with any inspections conducted by or for Buyer and will indemnify, defend,
and hold Seller harmless from all claims and liabilities asserted against Seller as a result of any such entry by Buyer, its agents,
consultants, employees, or representatives unless arising from the wrongful misconduct or gross negligence of Seller, its agents,
consultants, employees, or representatives. If any inspection or test disturbs the Property, Buyer will restore the Property to
the same condition, or substantially similar, as existed prior to any such inspection or test, and Buyer’s obligation to
perform such restoration of the Property shall survive the termination of this Agreement. Notwithstanding anything set forth in
this Agreement to the contrary, Buyer shall not be responsible for any pre-existing conditions at the Property. Notwithstanding
the expiration of the Initial Inspection Period, Buyer and its agents, employees, and representatives shall have a continuing right
of reasonable access to the Property and Property Information during the pendency of this Agreement with the right to examine and
make copies of all books and records and other materials relating to the Property in Seller’s or the Management Company’s
possession or reasonable control, including without limitation the Leases, and the right to conduct “walk throughs”
of the Property at times scheduled with Seller prior to the Closing.

 

2.2.3.          Invasive
Testing.   Notwithstanding anything to the contrary provided in this Article 2, no invasive testing, investigation, sampling
or boring shall be conducted without Seller’s prior written consent. Buyer shall notify Seller in advance and coordinate
the timing of any site inspections and tests with Seller, so as to minimize disruptions upon the Property. Seller shall provide
Buyer with written authorization for Buyer to obtain reliance letters from any third party consultants who provided reports regarding
the condition of the Property, including, but not limited to any environmental consultant, soil consultant or engineering firm.

 

2.2.4.          Buyer’s
Obligations.     Buyer shall obtain (or cause its consultant(s) to obtain), and shall provide evidence to Seller of, a policy of
commercial general liability insurance, issued by an insurer reasonably satisfactory to Seller, covering Buyer (or its consultant(s))
on an occurrence basis in the amount of not less than $1,000,000.00 in connection with any personal injury or property damage arising
out of any investigative activity conducted by Buyer (and its consultant(s)) on the Property and such policy shall name Seller
as an additional insured. Buyer shall pay all costs incurred in making any tests, surveys, analyses, and investigations of the
Property. Until the Closing, Buyer agrees to keep confidential all information relating to the Property provided to Buyer by Seller
or obtained by Buyer in the course of Buyer’s review and inspection of the Property; provided, however, that such information
may be disclosed to Buyer’s agents, representatives, employees, consultants and attorneys who are assisting Buyer with Buyer’s
inspection and evaluation of the Property, to Buyer’s existing or prospective lenders and joint venture partners, and to
the extent required by subpoena or court of competent jurisdiction or by a governmental authority or otherwise legally required.
The obligations of Buyer under this Section 2.2.4 shall survive the termination of this Agreement.

 

    	7

    	 

    

 

2.2.5.          Final
Due Diligence.    The parties hereto acknowledge and agree that the Improvements will be constructed, completed and delivered
to the Management Company for operations upon substantial completion of each such building on a phased delivery schedule throughout
the pendency of this Agreement. Prior to the expiration of the Initial Inspection Period, Seller shall provide Buyer an estimated
delivery schedule for such buildings; provided, such schedule shall be a good faith estimate for informational purposes only, and
such schedule may be modified or extended by Seller as the result of Change Orders, Force Majeure or as Seller otherwise reasonably
deems necessary or appropriate to complete the Work in accordance with the terms of this Agreement, the loan documents for Seller’s
development financing, and applicable laws, regulations or governmental requirements. Upon substantial completion of construction
of a portion of the Improvements being delivered to the Management Company from time to time (as reasonably determined by Seller,
but in no event less than one building at any one time, and set forth in a written notice from Seller to Buyer, which notice shall
include copies of temporary certificates of occupancy for the applicable portion of the Improvements), Buyer shall have the right
to inspect the Property and such portion of the Improvements (a “Final Inspection”) (a) to confirm that such
Improvements were constructed in accordance with the Plans and Specifications, (b) to confirm that the Improvements are in a Rent
Ready Condition, and (c) for the other purposes set forth and/or contemplated by this Section 2.2.5. Buyer shall conduct
such Final Inspection simultaneously with Seller’s “walk-through” inspections of such portion of the Improvements,
which Seller shall schedule with Buyer promptly after the last to occur of the following: (i) an AIA Document G-704 Certificate
of Substantial Completion (or a certificate that is the functional equivalent if an AIA Document G-704 is inapplicable for any
reason) from the Project Architect that states that such Improvements have been completed substantially in accordance with the
Plans and Specifications and that, to the best of such architect’s knowledge and belief, all such Improvements are free from
material defect in design, construction, materials and workmanship and (ii) a temporary certificate of occupancy for such portion
of the Improvements. During each Final Inspection, Buyer’s and Seller’s representatives shall jointly prepare a list
designating items which, in the parties’ reasonable determination, are not in substantial conformance with the Required Standard
and the Plans and Specifications, which do not materially conform to the requirements of this Agreement or which otherwise require
correction, resolution or completion prior to Closing (each a “Punch List”). Subject to the Rent Ready Condition
requirement set forth in Section 5.3.2 hereof and a Seller material default of its obligations hereunder, if Buyer does
not object to the condition of such Improvements during the Final Inspection, Buyer shall be deemed to have irrevocably accepted
the “as-built” condition of such Improvements for the purposes of this Section 2.2.5 and thereafter waived any
further right to object to any condition of such Improvements following delivery thereof by Seller to the Management Company. Seller
shall be obligated to correct any defects and complete any other items on the Punch List as necessary to bring such Improvements
into material compliance with the Required Standard, the Plans and Specifications and this Agreement. Seller shall diligently pursue
such corrections after each Final Inspection, and Buyer shall be provided the opportunity to review such corrections on subsequent
“walk-throughs” of the Property scheduled in connection with the substantial completion and Final Inspection of other
portions of the Project.

 

    	8

    	 

    

 

2.3.          Management
of the Property.   The parties hereto acknowledge and agree that the Improvements will be constructed and completed on a phased
delivery schedule throughout the pendency of this Agreement as provided by Seller prior to the expiration of the Initial Inspection
Period (it being acknowledged such schedule shall be a good faith estimate for informational purposes only, and such schedule
may be modified or extended by Seller as the result of Change Orders, Force Majeure or as Seller otherwise reasonably deems necessary
or appropriate to complete the Work in accordance with the terms of this Agreement, the loan documents for Seller’s development
financing, and applicable laws, regulations or governmental requirements). Upon the completion of any portion of the Improvements,
Seller shall engage Greystar (the “Management Company”) to manage those completed portions of the Property
and the Improvements until the Closing Date pursuant to a management agreement upon terms and conditions reasonably acceptable
to Buyer (the “Management Agreement”) and in accordance with management practices consistent with Class A apartment
industry standards. Buyer may assume the Management Agreement at Closing in accordance with the terms of this Agreement. The Management
Company shall manage the Improvements solely for Seller’s benefit prior to Closing and solely for Buyer’s benefit
after Closing.

 

2.4.          Pendency
of Construction.

 

2.4.1.          During
the course of construction of the Improvements, Seller and its contractor shall provide (and cause its contractor and the Project
Architect to provide) Buyer and its architect and agents access to the Improvements and the information concerning the progress
of construction that may be reasonably requested by them. Buyer shall receive copies of all job meeting minutes and change orders
between Seller as owner and the Project Architect and/or the contractor. Seller shall establish and implement procedures for coordination
and communication among Seller, Buyer and the Project Architect.

 

2.4.2.          Seller
shall cause construction of the Improvements on the Real Estate, including acquisition and installation of the Tangible Personal
Property, to be completed substantially in accordance with the Required Standard and the Plans and Specifications. Seller assumes
and accepts all risks, both known and unknown of achieving completion of the Project, and the parties acknowledge that the Purchase
Price has been derived in contemplation of the risks herein assumed and accepted. Without limiting the generality of the foregoing,
Seller shall be responsible for all Costs of the Project and under no circumstances shall the Purchase Price be increased, except
and unless such increase is based on Open Design Items in accordance with Section 2.5 or Change Orders initiated by Buyer and approved
by Seller in accordance with the terms hereof.

 

2.4.3.          Each
contractor and subcontractor shall be duly licensed in the State of North Carolina and shall have experience in and/or be familiar
with the construction and development of buildings which are similar in nature to the Project.

 

2.4.4.          Seller
shall provide Buyer with one (1) complete set of the final, as-built Plans and Final Specifications (together with additional electronic
copies on CD as reasonably requested by Buyer, provided Seller has ensured that Buyer has permission to print additional sets).

 

2.4.5.          All
Design Rights of Seller produced by or otherwise resulting from the performance of services with respect to the Project shall be
and remain the sole and exclusive property of Seller until Closing. Each contract with the Project Architect, and each contract
with any engineer, designer or other consultant engaged by either Seller or the Project Architect in connection with the designing
of the Project, shall include a provision to the effect (or if such provision is not included, Seller shall request the written
consent of the Project Architect or such other party) that all Design Rights of Seller produced by or otherwise resulting from
the performance of services with respect to the Project by, as applicable, that Project Architect or such engineer, designer or
other consultant shall be assignable to Buyer at Closing.

 

    	9

    	 

    

 

2.4.6.          Seller
shall pay or cause to be paid all royalties and license fees for materials, methods and systems incorporated in the Work. Seller
shall defend or cause to be defended all suits or claims for infringement of any patent or other intellectual property rights and
shall hold Buyer harmless from loss or expense on account thereof, including reasonable attorneys’ fees actually incurred.

 

2.4.7.          Upon
Closing, Seller shall assign to Buyer or to such entity or entities as Buyer may direct, its agreements with the Project Architect
and general contractor for the Work performed in connection with the Project, including each warranty, guaranty and/or indemnity
obtained from the Project Architect and general contractor for the Work performed in connection with the Project. Seller also shall
obtain written consent to such assignments from the Project Architect and general contractor. These documents shall be delivered
in the form of warranty manual that is customarily prepared by Seller’s general contractor (the “Warranty Manual”).
One (1) copy of the Warranty Manual (together with such additional electronic copies on CD as Buyer may reasonably request) shall
be provided to Buyer at Closing.

 

2.4.8.          Seller
shall coordinate with the Project Architect, Buyer and others for the technical inspection and testing to be provided by the Project
Architect and others. Seller and Buyer shall be provided with copies of the testing reports.

 

2.4.9.          Seller
shall keep at its principal office and shall provide to Buyer a complete list of all subcontractors and material suppliers involved
in or providing services to the Project. Prior to Closing, Seller shall use commercially reasonably efforts to deliver to Buyer
full and complete releases of liens from the general contractor and each subcontractor and supplier or other proof reasonably satisfactory
to Buyer in its sole discretion, confirming that full and final payment has been made for all materials supplied and labor furnished
in connection with the Project. Additionally, prior to Closing, Seller shall deliver to Buyer a report showing the amounts paid
to the providers of all materials and services for the Project which shall be grouped either by trade or by subcontractor. To the
extent that Seller cannot obtain any lien releases as of the Closing Date, a portion of the Purchase Price equal to the actual
cost of the Work for which Seller has not obtained lien releases shall be withheld and deposited into escrow with the Escrow Holder.
Within ninety (90) days after the Closing Date, Seller shall either (i) deliver full and complete releases of liens from the general
contractor and each subcontractor and supplier or other proof reasonably satisfactory to Buyer in its sole discretion, confirming
that full and final payment has been made for all materials supplied and labor furnished in connection with the Project; or (ii)
cause a surety bond to be filed as necessary to cover payment for any Work for which Seller has failed to deliver full and complete
lien releases or other proof of payment. Upon Seller’s performance in accordance with either clause (i) or (ii) of the immediately
preceding sentence, the Escrow Holder shall release the escrowed portion of the Purchase Price to Seller.

 

2.4.10.         Seller
shall secure and pay for necessary approvals, permits, easements, assessments, and charges required for the construction, use,
or occupancy of the Project.

 

    	10

    	 

    

 

2.4.11.         To
the full extent permitted by applicable law, Seller shall defend, indemnify and hold harmless Buyer from and against any and all
accidents, injuries, claims, demands, suits, damages, losses, liabilities and expenses, including attorneys’ and experts’
fees and expenses, arising out of, in connection with or resulting from the performance of the Work on the Property, but only to
the extent caused by the negligent acts or omissions of Seller, the Project Architect, the general contractor, a subcontractor,
or anyone directly or indirectly contracted, employed or engaged by any of them or anyone for whose acts they may be responsible
or liable, and provided that the underlying accident, injury, claim, demand, suit, damage, loss, liability or expense arose or
occurred prior to Closing. Buyer shall have the right, at its sole option, to participate in the defense of any related claim,
demand or suit without relieving Seller of its obligations under this Section 2.4.11. The liability of Seller resulting from its
defense and indemnity obligations hereunder shall not be limited or affected in any way by insurance coverage. For the avoidance
of doubt, Seller’s obligations to defend, indemnify and hold harmless Buyer under this Section 2.4.11 shall exclude any claims,
demands, suits, damages, losses, liabilities or expenses with respect to the workmanship or quality of the Project. Seller’s
obligations to defend, indemnify and hold harmless Buyer under this Section 2.4.11 shall survive for a period equal to the applicable
statute of limitations with respect to the underlying accident, injury, claim, demand, suit, damage, loss, liability or expense
that arose or occurred prior to Closing.

 

2.4.12.         Seller
shall purchase from, and maintain in a company or companies licensed or registered and lawfully authorized to do business in the
state in which the Project is located, commercial general liability and excess/umbrella liability insurance for protection from
or with respect to claims for damages because of bodily injury, including death, claims for damages because of personal injury,
claims involving contractual liability under this Agreement and claims for damages to property, that arise out of or result from
the Work or Improvements on the Project. Such insurance shall be written on an occurrence form and shall not be terminated or allowed
to expire prior to Closing. Seller shall cause such insurance to include Buyer as an additional insured.

 

2.5.          Open
Design Items.    As of the Date of Agreement, the Plans and Specifications have not been finalized with respect to certain items
(the “Open Design Items”). No later than ten (10) business days prior to the end of the Initial Inspection Period,
Seller shall deliver to Buyer a written notice describing the scope and specifications for all proposed Open Design Items. Buyer
shall have ten (10) business days after receipt of such notice to notify Seller in writing of whether Buyer approves such proposed
Open Design Item, such approval not to be unreasonably withheld. If Buyer fails to provide such notice within such ten (10) business
day period, Buyer shall be deemed to have approved such Open Design Item. All Open Design Items that are approved or deemed approved
by Buyer shall be listed on Exhibit H attached hereto. Seller shall cause such approved Open Design Items to be incorporated
into the Plans and Specifications and shall deliver to Buyer an update to the Plans and Specifications reflecting such Open Design
Items, when available. If Buyer desires to object to such Open Design Item, then Buyer’s notice shall include a reasonably
detailed explanation of Buyer’s desired changes for the applicable Open Design Item. Seller shall make Buyer’s desired
changes to the applicable Open Design Item provided that (i) Buyer shall be solely responsible for all costs resulting from such
changes in excess of the budgeted line item for such Open Design Item as set forth in the Development Budget to be attached as
Exhibit I, which costs shall be paid up-front by Buyer, shall be non-refundable and shall be in addition to (i.e.,
not credited toward) the Purchase Price; (ii) such changes shall not cause the Project to violate any applicable governmental rules
or regulations; (iii) such changes shall be permitted under the loan documents for Seller’s development financing or shall
have been approved by Seller’s lender; (iv) such changes shall not, in Seller’s reasonable discretion, adversely affect
the structural integrity of the Project or the functionality of the mechanical systems and equipment comprising the Project; and
(v) such changes shall be substantially consistent, in Seller’s reasonable discretion, with the overall design and theme
of the Project as set forth in the Plans and Specifications and generally with Class A apartment industry standards. Notwithstanding
anything to the contrary set forth in this Section 2.5, all Open Design Items as finalized shall be substantially consistent,
in Buyer’s reasonable discretion, with the overall design and theme of the Project as set forth in the Plans and Specifications
and generally with Class A apartment industry standards.

 

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2.6.          Changes
to Plans and Specifications.    Subject to the finalization of Open Design Items as described in Section 2.5, Seller shall
not materially change, modify or supplement the Plans and Specifications except pursuant to a change order issued in accordance
with the provisions of this Section 2.6, including Buyer’s approval thereof if required hereunder, which approval
shall not be unreasonably withheld (each a “Change Order” and, collectively, “Change Orders”).
Buyer shall be promptly notified and provided a copy of any request for a Change Order received by Seller from the general contractor
or otherwise proposed by Seller (a “Change Request”). The parties acknowledge that a Change Request will typically
be received approximately thirty (30) days prior to the need to implement such Change Order. Such notification to Buyer shall be
an informational delivery only and shall not entitle Buyer any rights to approve such Change Request same unless expressly provided
in this Section 2.6 and such receipt alone by Buyer shall not be deemed approval of means, methods or deviations from the
Plans and Specifications unless approved in writing by Buyer in accordance with the terms of this Agreement. Each Change Request
submitted to Buyer shall include reasonable detail regarding the effect that such Change Order would have on the Project. Upon
delivery to Buyer of a Change Request requiring Buyer’s approval pursuant to the terms of this Section 2.6, Buyer
shall have ten (10) business days to provide Seller with a written objection to such Change Request (or a portion thereof) in which
event Buyer and Seller shall seek to mutually resolve any objections put forth by Buyer. In the event that Buyer does not provide
written objection thereto within such ten (10) business day period, the Change Request shall be deemed approved by Buyer and Seller
may proceed to implement the applicable Change Order. Notwithstanding the foregoing, Seller shall not be obligated to obtain Buyer’s
written approval of any Change Request or Change Order if such Change Request or Change Order would not result in a material change
to the Plans and Specifications. As used in this Section 2.6, the terms “material” or “materially”
shall mean any change to the Plans and Specifications in which (i) the number of buildings or units within the Project is changed;
(ii) the aggregate number of bedrooms within the Project is changed; (iii) the unit mix (i.e., studio, one-bedroom, two-bedroom,
etc.); or (iv) such change results in a change in the Costs of the Project by more than $50,000.00. Notwithstanding the foregoing
or anything herein to the contrary, the Seller shall not allow any changes in finishes from the Final Plans or Specifications or
any change in any product or material used in the construction of the Project from the Final Plans or Specifications unless such
changes are previously approved by Buyer, such approval not to be unreasonably withheld. Buyer may initiate a Change Order by delivering
written notice to Seller including a reasonably detailed explanation of the desired changes to the Plans and Specifications. Seller
shall make Buyer’s desired Change Order to the Plans and Specifications provided that (i) Buyer shall be solely responsible
for all costs resulting from such Change Order in excess of the budgeted line item as set forth in the Development Budget, plus
an amount equal to ten (10%) of such excess cost, which costs shall be paid up-front by Buyer, shall be non-refundable and shall
be in addition to (i.e., not credited toward) the Purchase Price; (ii) such changes shall not cause the Project to violate
any applicable governmental rules or regulations; (iii) such changes shall be permitted under the loan documents for Seller’s
development financing or shall have been approved by Seller’s lender; (iv) such changes shall not, in Seller’s reasonable
discretion, adversely affect the structural integrity of the Project or the functionality of the mechanical systems and equipment
comprising the Project; and (v) such changes shall be substantially consistent, in Seller’s reasonable discretion, with the
overall design and theme of the Project as set forth in the Plans and Specifications and generally with Class A apartment industry
standards. Notwithstanding the foregoing or anything herein to the contrary, Seller shall not be obligated to obtain Buyer’s
written approval of any Change Request or Change Order which is necessary to comply with or satisfy any building code requirements,
governmental inspections or other applicable laws, regulations or requirements.

 

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ARTICLE
3:TITLE AND SURVEY REVIEW

 

3.1.          Title
Commitment and Survey.    Within ten (10) days after the Date of Agreement, Seller shall obtain and deliver to Buyer a commitment
for title insurance (the “Title Commitment”) issued by Title Company, in the amount of the Purchase Price,
with Buyer as the proposed insured, to be accompanied by copies of all documents referred to in the Title Commitment. Seller shall
provide Buyer with copies of certain surveys (collectively, the “Surveys”) as follows: (i) within five (5)
days after the Date of Agreement, Seller shall provide Buyer with a copy of Seller’s existing survey of the Property; (ii)
during construction of the Improvements, upon completing the foundation(s) of the Improvements, Seller shall provide Buyer with
a copy of Seller’s foundation survey; and (iii) prior to Closing, Seller shall provide Buyer with a current “as built”
ALTA/ACSM survey, including without limitation, with Table A items 1-4, 6b, 7a, 7b1, 7c, 8, 9, 11a, 13-14 and 16-18, for the completed
Project, to be prepared by Scott Wilson at Bass, Nixon & Kennedy, Inc.

 

3.2.          Title
Review and Cure.

 

3.2.1.          Seller
will reasonably cooperate with Buyer in curing any objections Buyer may have to title to the Property, but Seller shall not be
obligated to incur any liability or expense in connection therewith, except as expressly provided in this Agreement. Seller shall
have no obligation to cure any objections Buyer may have to title to the Property except as follows: (i) Seller shall cause to
be released at or prior to the Closing any and all liens, mortgages, money charges or judgments of an ascertainable amount including,
without limitation, those arising out of, resulting from or related to financing, construction and/or taxes (other than taxes that
are not yet due and payable), other than any such liens or other matters created by, under or through Buyer; and (ii) Seller agrees
to remove any exceptions or encumbrances to title which are created by, under or through Seller after the Date of Agreement, except
for exceptions or encumbrances consented to, authorized or approved by Buyer in writing (or are deemed approved by Buyer in accordance
with this Agreement). The term “Permitted Exceptions” shall mean the specific exceptions to coverage specified
in Schedule B, Section 2 (i.e., exceptions that are not part of the promulgated title insurance form) in the Title Commitment
that the Title Company has not agreed to insure over or remove from the Title Commitment and that Seller is not required to remove
as provided above or does not cure as set forth in Section 3.2.2 below; real estate taxes not yet due and payable; installments
of assessments not yet due and payable; exceptions to coverage consented to, authorized or approved by Buyer in writing (or deemed
approved by Buyer in accordance with this Agreement); the rights of the public in public ways; and underground utility and drainage
easements (and any aboveground easement relating to the existing electrical facilities on the Property as of the Date of Agreement)
that do not adversely affect the use of the Property for its current use or use as anticipated by this Agreement. For the avoidance
of doubt, Seller may grant customary and necessary underground utility or drainage easements in connection with the development
of the Project without obtaining Buyer’s consent; provided, Seller shall consult in good faith with Buyer regarding any such
utility or drainage easements prior to granting such easements.

 

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3.2.2.          On
or before the date that is ten (10) days prior to the expiration of the Initial Inspection Period, Buyer shall notify Seller of
any objections to the title to the Property that Buyer may have. Within five (5) business days following Seller’s receipt
of such notification, Seller shall advise Buyer in writing whether Seller elects to cure any such objection to title (Seller shall
have no obligation to cure any objections Buyer may have to title to the Property except as set forth in Section 3.2.1 above);
provided, however, if Seller fails to provide such notification, Seller shall be deemed to elect not to cure any such objections
to title. On or before the last day of the Initial Inspection Period, Buyer shall either elect to accept the Property, subject
to Seller’s elections (or deemed elections) as provided above, or elect to terminate this Agreement in the manner provided
in Section 2.2.1. Failure to notify Seller of such objections or election within the time periods referenced above shall
be deemed an approval of any matter pertaining to title to the Property disclosed by the Title Commitment or the Surveys.

 

3.2.3.          If
Title Company revises the Title Commitment after the expiration of the Initial Inspection Period to add or modify exceptions, including,
but not limited to any exceptions added or modified as a result of the Surveys delivered to Buyer as set forth in Section 3.1
above, or to delete or modify the conditions to obtaining any endorsement requested by Buyer during the Initial Inspection Period,
Buyer shall promptly notify Seller of any objections to such revisions and within five (5) business days following Seller’s
receipt of such notification, Seller shall advise Buyer in writing whether Seller elects to cure any such objection (Seller shall
have no obligation to cure any objections Buyer may have to title to the Property except as set forth in Section 3.2.1 above);
provided, however, if Seller fails to provide such notification, Seller shall be deemed to elect not to cure any such objections
to title, except as expressly required in Section 3.2.1 above. In addition to the foregoing, if Title Company revises the
Title Commitment after the expiration of the Initial Inspection Period to add or modify exceptions, including, but not limited
to any exceptions added or modified as a result of the Surveys delivered to Buyer as set forth in Section 3.1 above, or
to delete or modify the conditions to obtaining any endorsement requested by Buyer during the Initial Inspection Period, Buyer
may terminate this Agreement and receive a refund of the Earnest Money if such additions, modifications or deletions (a) arise
as a result of Seller’s actions after the expiration of the Initial Inspection Period and such additions, modifications or
deletions are not consistent with the Plans and Specifications (as same may be changed, modified or supplemented in accordance
with the terms of Sections 2.5 and 2.6 below) and have a material adverse effect on the development and/or business
operations of the Project as contemplated by this Agreement and (b) are not acceptable to Buyer, have not been consented to, authorized
or approved by Buyer or are not removed by the Closing Date.

 

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3.3.          Seller’s
Title Deliveries at Closing.     At or prior to the Closing, Seller shall execute and deliver: (i) a Seller’s or Owner’s
Affidavit (or Affidavits) in the form attached hereto as Exhibit B or such form as Title Company shall otherwise
reasonably or customarily require, so that Title Company can delete or modify the standard printed exceptions as to parties in
possession, unrecorded liens, and similar matters; (ii) a gap indemnity (or indemnities), if required by the Title Company; and
(iii) such other documents, instruments and agreements as are described in Section 5.4 below.

 

3.4.          Title
and Survey Costs.    The cost of the Surveys shall be paid by Seller; provided, that the cost of any revisions to the Surveys
requested by Buyer shall be paid for by Buyer. The premium for the Title Policy, including the premium for extended coverage and
any endorsements described above, and the cost of any search fees, title commitment and copies of exceptions shall be paid by
Buyer.

 

ARTICLE
4:CASUALTY AND CONDEMNATION

 

4.1.          Damage.
    Risk of loss up to and including the Closing Date shall be borne by Seller; provided, however, that Seller shall have no obligation
to rebuild the Property. In the event of any material damage to or destruction of the Property or any portion thereof, Buyer may,
at its option, by notice to Seller given within thirty (30) days after Buyer is notified of such damage or destruction (and if
necessary the Closing Date shall be extended to give Buyer the full 30 day period to make such election, which election shall
be deemed irrevocable): (i) terminate this Agreement and the Earnest Money (plus interest earned thereon) shall be immediately
returned to Buyer, (ii) if Seller agrees to rebuild the Property, extend the date of Closing by up to three hundred sixty-five
(365) days to permit Seller to restore the Property to its previous condition (provided that, if the Property is not fully restored
and repaired at the end of such three hundred sixty-five (365) day period, Buyer shall have the options provided in (i) and (iii)
at such time), or (iii) proceed under this Agreement, receive any insurance proceeds due Seller as a result of any such damage
or destruction which have not been applied to the cost of restoration and repair of the Property and Buyer shall assume responsibility
for all such repairs, and Buyer shall receive a credit at Closing for any deductible or coinsured amount under said insurance
policies. If Buyer elects to proceed under provision (iii) above, Seller will cooperate with Buyer after the Closing to assist
Buyer in obtaining the insurance proceeds from Seller’s insurers. If the Property is not materially damaged, then Buyer
shall not have the right to terminate this Agreement if Seller agrees, at its cost, repair the damage before the Closing and restore
the Property to its previous condition or, if repair and restoration cannot reasonably be completed before the Closing, Buyer
shall elect by written notice to Seller given at least ten (10) business days prior to the scheduled date of Closing, either to
extend the date of Closing by up to ninety (90) days to permit Seller to restore the Property to its previous condition or to
receive an assignment from Seller at the Closing of all insurance proceeds due Seller as a result of any such damage or destruction
which have not been applied to the cost of restoration and repair of the Property and Buyer shall assume responsibility for all
such repairs, with Buyer receiving a credit at Closing in an amount equal to any applicable deductible. “Material damage”
and “materially damaged” means damage reasonably exceeding $1,000,000.00 to repair.

 

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4.2.          Condemnation.
  Buyer may, at its option, by written notice to Seller given within thirty (30) days after Buyer receives notice of any material
proceedings in eminent domain that are contemplated, threatened or instituted by any body having the power of eminent domain (and
if necessary the Closing Date shall be extended to give Buyer the full 30 day period to make such election): (i) terminate this
Agreement and the Earnest Money (plus interest earned thereon) shall be immediately returned to Buyer; or (ii) proceed under this
Agreement, in which event Seller shall, at the Closing, assign to Buyer its entire right, title and interest in and to any condemnation
award and, after the end of the Initial Inspection Period, Buyer shall have the right during the pendency of this Agreement to
participate in negotiations with the condemning authority with respect to such matter. As used in this Section 4.2, the term “material
proceeding” shall mean any proceeding in eminent domain that (a) adversely affects the orientation of any buildings comprising
the Project, (b) adversely affects the availability of parking for the Project, (c) adversely affects legal access to the Project
or (d) causes any portion of any building comprising the Property to be considered a non-conforming use or a similar designation
that would prohibit the reconstruction of such building in accordance with the Plans and Specifications following the damage or
destruction of such building. If any taking or exercise of eminent domain does not have a material adverse effect as described
in the immediately preceding sentence (e.g. a minor widening of a public right-of-way or a public utilities easement),
such proceeding shall not entitle Buyer to terminate this Agreement and Buyer shall proceed under this Agreement, in which event
Seller shall, at the Closing, assign to Buyer its entire right, title and interest in and to any condemnation award and, after
the end of the Initial Inspection Period, Buyer shall have the right during the pendency of this Agreement to participate in negotiations
with the condemning authority with respect to such matter.

 

ARTICLE
5:  CLOSING

 

5.1.          Closing.
  The consummation of the closing of the purchase and sale of the Property (the “Closing”) shall be held on the
Closing Date at the offices of Escrow Holder. Provided, however, Buyer shall have the right to extend the Closing Date for twenty
(20) days by depositing with Escrow Holder the additional amount of $200,000.00 (the “Closing Extension Deposit”)
which shall be added to the Earnest Money. Each of the parties hereto shall cause to be prepared and forwarded to the other party
any documents contemplated by this Agreement to be prepared by such party in connection with the Closing sufficiently in advance
of the Closing so as to allow such documents to be reviewed, finalized, executed and delivered in escrow to the Escrow Holder
prior to the Closing so that the transaction contemplated by this Agreement may be consummated without requiring the parties to
be physically present at the time and location of the Closing. Notwithstanding anything herein to the contrary, if the Final Certificate
of Occupancy with respect to the Improvements has not been issued by the Outside Completion Date, Buyer may terminate this Agreement
by giving notice of termination to Seller and the Earnest Money shall be immediately refunded to Buyer.

 

5.2.          Service
Contracts.    During the term of this Agreement, Seller shall provide Buyer with copies of any contracts, agreements or understandings
with third parties with respect to services and supplies for the operation of the Property (“Service Contracts”).
Prior to entering into any Service Contract that cannot be terminated on thirty (30) days notice or that requires payment of a
termination penalty or termination fee, Seller shall obtain the approval of Buyer, such approval not to be unreasonably withheld.
In such event, Seller shall deliver written notice to Buyer with a copy of the proposed Service Contract. Buyer shall have ten
(10) days after receipt of such notice to notify Seller in writing of whether Buyer approves such Service Contract. If Buyer fails
to provide such notice within such ten (10) day period, Buyer shall be deemed to have approved such Service Contract At least forty
(40) days prior to Closing, Seller shall provide Buyer a final list of all Service Contracts. At least thirty (30) days prior to
Closing, Buyer will give Seller a list of those Service Contracts that Buyer will assume (the “Assumed Contracts”);
provided, the Assumed Contracts shall include any Service Contract that cannot be terminated by Seller on thirty (30) days notice
or that requires payment of a termination penalty or termination fee, if such Service Contract was previously approved (or deemed
approved) by Buyer. Seller shall terminate all Service Contracts that are not Assumed Contracts at Seller’s sole cost and
expense prior to Closing. Buyer will assume only those obligations under the Assumed Contracts that are not in default as of the
Closing Date. Seller shall obtain any necessary consents to fully and freely assign the Assumed Contracts to Buyer and shall pay
any assignment or assumption fee in connection therewith, if applicable. After delivery of the final list of Service Contracts
to Buyer, Seller shall not enter into any new contracts with respect to the Property, amend or waive in any material respect any
terms of any existing Service Contract or terminate or accept the cancellation of any Service Contract.

 

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5.3.          Closing
Conditions.

 

5.3.1.          Conditions
to Buyer’s Obligation to Close.   In addition to other conditions to Closing as set forth herein, the obligation of Buyer
to consummate the transaction contemplated by this Agreement shall be contingent upon the following: During the pendency of this
Agreement and except as otherwise contemplated as set forth in this Agreement with respect to the Improvements, no material change
shall have occurred with respect to the Property or Project that has not been (a) approved in writing by Buyer, or (b) deemed approved
by Buyer’s election to proceed under this Agreement upon the completion of its Final Inspection for the respective portion
of the Property notwithstanding Buyer’s actual knowledge of such material change. For the purposes of this Section 5.3.1,
a “material change” shall be a material adverse change in the physical condition, environmental condition, entitlements,
zoning, permitted use, conditions for or of use, and/or compliance with applicable law of the Property that occurs after the Date
of Agreement. If any such material change occurs after Buyer’s Final Inspection of the respective portion of the Property,
Buyer shall have fifteen (15) days following receipt of written notice from any source of any such material change within which
to approve or disapprove the same and make Buyer’s election under Section 5.3.3 in connection therewith. In the event
that Buyer is notified or otherwise actually becomes aware of a material change after its Final Inspection of the respective portion
of the Property and less than fifteen (15) days prior to the Closing Date, the Closing Date shall be extended to give Buyer the
full fifteen (15) day period to make its election. Seller will promptly notify Buyer in writing of any material change affecting
the Property that becomes actually known to Seller prior to the Closing. Buyer’s inspection and/or investigation rights pursuant
to the terms of this Agreement include the right to test, inspect for and investigate any material change of which Buyer is notified
or actually becomes aware, including, without limitation, changes in the environmental condition of the Property, which shall include
the right to test, inspect, investigate, sample and/or monitor for such matters as compliance with environmental laws, the accumulation
and/or presence of radon, mold or other hazardous materials in, on or about the Improvements, even if the same are not first tested
for or first discovered until after completion of the applicable portion of the Improvements and the issuance of a temporary certificate
of occupancy therefor; and Seller acknowledges and agrees that any such discovery shall qualify as a “material change”
with respect to such Improvements for the purposes of this Section 5.3.1. Buyer’s additional inspection rights
under this Section 5.3.1 relating to material changes are subject to Buyer’s obligations and covenants under
Section 2.2.2, Section 2.2.3 and Section 2.2.4; provided, however, in no event shall the obligations and covenants
under Section 2.2.2, Section 2.2.3 and Section 2.2.4 modify or amend Buyer’s additional inspection rights
with respect to a material change that did not exist as of the Final Inspection for the respective portion of the Property. 

 

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5.3.2.          Conditions
to the Parties’ Obligations to Close.   In addition to all other conditions set forth herein, the obligation of Seller,
on the one hand, and Buyer, on the other hand, to consummate the transactions contemplated by this Agreement shall be contingent
upon the following: (a) The other party’s representations and warranties contained herein shall be true and correct in all
material respects as of the date of this Agreement and the Closing Date; (b) As of the Closing Date, the other party shall have
performed its obligations hereunder and all deliveries to be made at Closing have been tendered; (c) There shall exist no actions,
suits, arbitrations, claims, attachments, proceedings, assignments for the benefit of creditors, insolvency, bankruptcy, reorganization
or other proceedings, pending or threatened against the other party that would materially and adversely affect the operations or
value of the Property or the other party’s ability to perform its obligations under this Agreement (except for any mechanics’
liens which Seller shall have bonded or insured over, and with respect to which Buyer and the Property shall be held harmless in
a manner reasonably satisfactory to Buyer); (d) There shall exist no pending or threatened action, suit or proceeding with respect
to the other party before or by any court or administrative agency which seeks to restrain or prohibit, or to obtain damages or
a discovery order with respect to, this Agreement or the consummation of the transactions contemplated hereby; and (e) on the Closing
Date, all vacant apartments will be in a “Rent Ready Condition.” “Rent Ready Condition” shall mean
that all apartments are ready for occupancy, have been constructed in accordance with the Required Standard and to the extent such
units have been occupied and vacated prior to the Closing Date such units shall have been thoroughly cleaned and recently painted
(within a reasonable time prior to the Closing Date). If any apartment is not in a “Rent Ready Condition” at Closing,
Seller agrees to provide Buyer with a credit of $1,000.

 

5.3.3.          Election
to Close or Terminate.    So long as a party is not in default hereunder, if any condition to such party’s obligation to
proceed with the Closing hereunder has not been satisfied as of the Closing Date, such party may, in its sole discretion, terminate
this Agreement by delivering written notice to the other party on or before the Closing Date, or elect to close, notwithstanding
the failure to satisfy such condition, in which event such party shall be deemed to have waived any such condition. In the event
such party elects to close, notwithstanding the failure to satisfy such condition, there shall be no liability on the part of any
other party hereto for breaches of representations, warranties and/or covenants of which the party electing to close had knowledge
at the Closing. However, nothing in the foregoing shall relieve a party from any liability it would otherwise have if the failure
of a party to satisfy a condition also constitutes a default by such party hereunder (e.g., the breach of a representation
or warranty by one party that is not and does not become known to the other party prior to the Closing).

 

5.4.          Seller’s
Deliveries at Closing.    At the Closing, Seller shall deliver to Escrow Holder the following:

 

5.4.1.          Deed.
  A special warranty deed in the form attached hereto as Exhibit C (or otherwise in conformity with the custom in the
State of North Carolina and in compliance with the customary and reasonable requirements of the Title Company; herein, the “Deed”),
executed and acknowledged by Seller, conveying to Buyer good, indefeasible and marketable fee simple title to the Real Property,
subject only to the Permitted Exceptions;

 

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5.4.2.          Bill
of Sale and Assignment.    A “Bill of Sale and Assignment” in the form of Exhibit D attached hereto,
executed by Seller, vesting in Buyer good title to the property described therein in its “as is, where is” condition,
free of any claims, except for the Permitted Exceptions to the extent applicable;

 

5.4.3.          Warranty
under General Contract.   Assignments of Seller’s agreements with the Project Architect and general contractor for the
Work performed in connection with the Project, including each warranty, guaranty and/or indemnity obtained from the Project Architect
and general contractor for the Work performed in connection with the Project, together with all other warranties for equipment
and components (including, without limitation, the roof) that would have otherwise run to Seller (whether from the Project Architect,
general contractor, a subcontractor, a supplier or otherwise) had the Property been retained by Seller (or was owned and developed
by Buyer), in form and substance reasonably satisfactory to Buyer, together with written consents by the Project Architect and
general contractor to the assignments of their contracts and warranties, also in form and substance reasonably satisfactory to
Buyer; and the parties shall endeavor and use commercially reasonable efforts to agree on the form and content of such assignments
and consents (as well as the form and content of the roof warranty(ies)) prior to the expiration of the Initial Inspection Period.

 

5.4.4.          Owner’s
Affidavit(s).   The affidavit or affidavits described in Exhibit
B and in Section 3.3 hereof.

 

5.4.5.          Designation
Agreement. A designation agreement designating the party responsible for any Form 1099-S filings as may be required by the
Internal Revenue Service’s regulations.

 

5.4.6.          Bring
Down Certificate.   A bring down certificate stating that all of the representations and warranties of Seller contained in Article
7 are true, accurate and complete on and as of the Closing Date.

 

5.4.7.          State
Law Disclosures.   Such affidavits, disclosures and reports, required of Seller by applicable State and local law in connection
with the conveyance of real property;

 

5.4.8.          FIRPTA.
  A Foreign Investment in Real Property Tax Act affidavit (in the form attached hereto as Exhibit G) executed by Seller.
If Seller fails to provide the necessary affidavit(s) and/or other documentation of exemption on the Closing Date, Buyer may proceed
with withholding as provided by law;

 

5.4.9.          Rent
Roll. An updated, certified rent roll dated no earlier than five (5) business days prior to the Closing;

 

5.4.10.         Additional
Deliveries.    (i) All keys to the Property; (ii) originals (if available, otherwise copies, Seller agreeing to use diligent efforts
to obtain originals whenever possible) of all Property Information, contracts, occupancy certificates, building and operating permits,
approvals, licenses, guarantees and warranties and similar documents within Seller’s possession and/or reasonable control;
(iii) originals of all “as built” plans and specifications and the Surveys for the Property, to the extent not already
in the possession of Buyer;

 

5.4.11.         Authority.
   Evidence of existence, organization and authority of Seller and the authority of the person(s) executing documents on behalf of
Seller reasonably satisfactory to Buyer and Title Company; and

 

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5.4.12.         Additional
Documents.    Any additional documents that Buyer, Escrow Holder or Title Company may reasonably require for the proper consummation
of the transaction contemplated by this Agreement, including, without limitation, the certificate contemplated by Section 7.3.

 

5.5.          Buyer’s
Deliveries at Closing.    At the Closing, Buyer shall deliver to Escrow Holder the following:

 

5.5.1.          Purchase
Price.   The Purchase Price, less the Earnest Money, which shall be disbursed by Escrow Holder to Seller and applied to the Purchase
Price, plus or minus applicable prorations, deposited by Buyer with Escrow Holder in immediate same day federal funds wired for
credit to Escrow Holder’s escrow account;

 

5.5.2.          Bill
of Sale and Assignment.   The Bill of Sale and Assignment as executed by Buyer;

 

5.5.3.          State
Law Disclosures.   Such affidavits, disclosures and reports required by applicable State and local law in connection with the
conveyance of real property;

 

5.5.4.          Authority.
   Evidence of existence, organization and authority of Buyer and the authority of the person(s) executing documents on behalf of
Buyer reasonably satisfactory to Seller and Title Company;

 

5.5.5.          Additional
Documents.    Any additional documents that Seller, Escrow Holder or Title Company may reasonably require for the proper consummation
of the transaction contemplated by this Agreement.

 

5.6.          Closing
Statement(s)/Escrow Fees.     At the Closing, Seller and Buyer shall execute closing statements consistent with this Agreement
in form required by Escrow Holder. Any fees of the Escrow Holder for normal and customary closing services shall be shared and
paid equally by the parties.

 

5.7.          Delivery
of Possession.   Seller shall deliver possession of the Property to Buyer at the Closing subject only to the Permitted Exceptions.
Seller shall deliver the keys to the Property to the offices of Buyer, or such other place as Buyer shall direct in a notice to
Seller given at or prior to the Closing, and Seller shall secure and leave on the Property for Buyer (if available to Seller)
the original of any “as built” plans and specifications and all other available plans and specifications relating
to the Property.

 

5.8.          Close
of Escrow.   Upon satisfaction or completion of the foregoing conditions and deliveries, the parties shall direct Escrow Holder
or Title Company, as appropriate, to immediately record and deliver the documents described above to the appropriate parties and
make disbursement according to the closing statements executed by Buyer and Seller.

 

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ARTICLE
6:CLOSING COSTS

 

6.1.          Taxes
and Assessments Prorations.     General real estate taxes and assessments imposed by governmental authority (“Taxes”)
and any assessments by private covenant constituting a lien or charge on the Property for any calendar year or any tax period
prior to the calendar year or tax period in which Closing occurs shall be paid by Seller at or prior to Closing. Taxes and any
assessments by private covenant constituting a lien or charge on the Property for the then current calendar year or other current
tax period not yet due and payable shall be prorated between Seller and Buyer as of 11:59 p.m. on the day immediately preceding
the Closing Date. If any taxes are imposed because of a change in the use of the Property prior to Closing (e.g., farm
use or rollback taxes), Seller shall be responsible for and shall pay at Closing such taxes on the Property, if any, relating
solely to the period prior to Closing. If the Closing occurs prior to the receipt by Seller of the tax bill for the calendar year
or other applicable tax period in which the Closing occurs, Buyer and Seller shall prorate Taxes for such calendar year or other
applicable tax period based upon the most recent ascertainable assessed values and tax rates. If the Property has not been assessed
on a completed basis but will be assessed on a completed basis for the current year or other applicable current tax period, the
parties shall complete the proration based on the most recent ascertainable assessed values and tax rates, but shall agree at
Closing to escrow a portion of the Seller’s proceeds for Buyer’s benefit which, in the parties’ good faith,
reasonable determination, is sufficient to cover payment of Seller’s prorated share of Taxes for the tax period in which
the Closing occurs once the Property has been assessed on a completed basis. It is the parties’ intent and agreement that,
ultimately, each party shall be responsible and liable for any Taxes (as well as assessments) which relate to the period during
which such party owned the Property; i.e., as between the parties, Seller shall be responsible and liable for Taxes and
assessments which relate to any period prior to the Closing Date and Buyer shall be responsible and liable for Taxes and assessments
which relate to the period commencing on the Closing Date and continuing thereafter, and each party’s obligations and liabilities
in this regard shall survive the Closing.

 

Promptly after the
end of the calendar year (or other applicable period) encompassing the Closing Date and receipt of final Taxes, Buyer shall prepare
and present to Seller a calculation of the reproration of such Taxes based upon the actual amount of such items charged to or received
by the parties for the year or other applicable fiscal period. The parties shall make an appropriate adjusting payment between
them within thirty (30) days after presentment to Seller of Buyer’s calculation. In any event, Seller shall be responsible
and liable for all tax bills to the extent the same apply or relate to any tax year prior to the tax year during which the Closing
occurs and Seller’s obligations, liabilities and duties in this regard shall survive the Closing. Buyer’s and Seller’s
obligations, liabilities, rights and duties pursuant to this Section 6.1 shall also survive Closing.

 

6.2.          Sales
Transfer and Documentary Taxes; Recording Fees.       Seller shall pay all sales, gross receipts, excise, documentary, transfer,
deed or similar taxes and fees imposed in connection with this transaction under applicable local or state law. Buyer shall pay
the other costs, fees and charges incurred in connection with recording the Deed, but Seller shall pay all costs, fees and charges
incurred in connection with recording any other documents or instruments required in connection with the transfer of the Property
from Seller to Buyer other than documents evidencing or securing any financing placed upon the Property by Buyer.

 

6.3.          Commissions.
   Except for the commission payable by Buyer to Apartment Realty Advisors of the Carolinas (the “Broker”) pursuant
to a separate written agreement, Seller and Buyer represent and warrant each to the other that they have not dealt with any real
estate broker, sales person or finder in connection with this transaction. Each party shall indemnify, defend and hold the other
party free and harmless of, from and against any and all claims by any other broker that a fee, commission or other payment is
due or owing or is to become due or owing in connection with the Closing, this Agreement or the transaction contemplated by this
Agreement as a result of any claimed agency or cooperative relationship with the indemnitor. The obligations, liabilities, rights
and duties pursuant to this Section 6.3 shall survive Closing or any termination of this Agreement.

 

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6.4.          Operating
Expenses.  Seller is responsible for and shall pay all operating expenses and all other expenses and utility charges in respect
of the Property for all time periods through the day prior to Closing. Buyer is responsible for and shall pay all such items for
all time periods commencing on the day of Closing. Seller will pay all salaries, taxes, fringe benefits and accrued vacation and
sick leave and similar items accrued with respect to employees of the Property through the day prior to Closing and all such compensation
expenses will be satisfied as of such date. Buyer and Seller shall prorate operating expenses and all other expenses and utility
charges with respect to the Property as of the Closing Date.

 

6.5.          Income.
   Seller is entitled to receive and retain all income in respect of the Property for all time periods through the day prior to Closing
and Buyer is entitled to receive and retain all such income for all time periods commencing on the day of Closing. For purposes
of making the prorations contained herein, at Closing, Buyer will be given credit for rent paid to Seller relating to time periods
commencing on or after the Closing Date. This credit will reflect actual collected rents, and Seller and Buyer agree to adjust
this proration (together with other prorations) pursuant to the last sentence of this paragraph based on actual collections for
the month in which Closing occurs. Rents are prorated by applying amounts received prior to Closing first to rents due in the month
in which Closing occurs and then to past due rents in inverse order of maturity (i.e., the most recent delinquencies paid
first).

 

6.6.          Security
Deposits.   Buyer shall receive a credit against the Purchase Price for the amount of all security and other deposits and prepaid
rents paid by or required to be paid under the Leases.

 

6.7.          Rents
Collected after Closing.    Notwithstanding the foregoing, no prorations shall be made in relation to either (a) non-delinquent
rents or expense reimbursements which have not been collected as of the Closing Date, or (b) delinquent rents existing, if
any, as of the Closing Date (the foregoing (a) and (b) referred to herein as the “Uncollected Rents”). In adjusting
for Uncollected Rents, no adjustments shall be made in Seller’s favor for rents which have accrued and are unpaid as of the
Closing, but Buyer shall pay Seller such accrued Uncollected Rents as and when collected by Buyer. Buyer’s collection of
rents shall be applied, first, towards rent due and owing to Buyer under the Leases, second, to Buyer’s reasonable third-party
costs of such collection, and third to Seller for Uncollected Rents. After the Closing, Seller shall continue to have the right,
but not the obligation, in its own name, to demand payment of and to collect Uncollected Rents owed to Seller by any tenant that
are in excess of sixty (60) days past due, which right shall include, without limitation, the right to continue or commence legal
actions or proceedings against any tenant and the assignment of the Leases shall not constitute a waiver by Seller of such right;
provided however, that the foregoing right of Seller shall be limited to actions seeking monetary damages and, in no event, shall
Seller seek to evict any tenants in any action to collect Uncollected Rents. Buyer agrees to reasonably cooperate with Seller,
at no cost or expense to Buyer, in connection with all efforts by Seller to collect such Uncollected Rents and to take all steps,
whether before or after the Closing Date, as may be reasonably necessary to carry out the intention of the foregoing; provided,
however, that Buyer’s obligation to cooperate with Seller pursuant to this sentence shall not obligate Buyer to terminate
any Lease with an existing tenant or evict any existing tenant from the Property.

 

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ARTICLE
7:REPRESENTATIONS AND WARRANTIES

 

7.1.          Seller’s
Representations and Warranties.    As a material inducement to Buyer to execute this Agreement and consummate this transaction,
Seller represents and warrants to Buyer that:

 

7.1.1.          Organization
and Authority.    Seller has been duly organized and is validly existing as a North Carolina limited liability company, and Seller
is in good standing in the state where the Property is located. Seller has the full right and authority and has obtained any and
all consents required therefor to enter into this Agreement and consummate or cause to be consummated the sale of the Property.
This Agreement and all of the documents to be delivered by Seller at the Closing have been and will be authorized and properly
executed and will constitute the valid and binding obligations of Seller, enforceable in accordance with their terms.

 

7.1.2.          Conflicts
and Pending Actions or Proceedings.    (i) There is no agreement to which Seller is a party or binding on Seller which is in conflict
with this Agreement. (ii) There is no action or proceeding pending or, to Seller’s knowledge, threatened against the Property,
which challenges or impairs Seller’s ability to execute this Agreement. (iii) There is no proceeding pending or, to Seller’s
knowledge, threatened, including, without limitation, any condemnation or rezoning proceedings, which challenges or impairs Seller’s
ability to perform its obligations under this Agreement. (iv) There are no proceedings pending or, to Seller’s knowledge,
threatened against Seller or with respect to the Property that would affect the Property or the right to occupy or utilize the
same.

 

7.1.3.          Contractors
and Suppliers.    All contractors, subcontractors, suppliers, architects, engineers and others who have performed services, labor,
or supplied material in connection with Seller’s acquisition, development, ownership, operation or management of the Property
have been paid in full, or will be paid in full by Closing, and all liens arising therefrom (or claims which with the passage of
time or notice or both, could mature into liens) have been (or will be at Closing) satisfied and released (except for liens or
claims which Seller has bonded or insured over to the reasonable satisfaction of Buyer).

 

7.1.4.          Service
Contracts.    As of the Closing Date, there are no contracts, agreements or understandings with any party with respect to services
and supplies to the Property or which are not cancelable on or before the Closing Date, unless otherwise agreed to by Buyer as
part of the Assumed Contracts.

 

7.1.5.          Withholding
Obligation.    Seller is not a “foreign person” within the meaning of Section 1445 of the Internal Revenue Code of
1986, as amended. Seller’s sale of the Property is not subject to any federal, state or local withholding obligation of Buyer
under the tax or other laws applicable to Seller or the Property.

 

7.1.6.          Disclosures.
   Seller is not legally required to provide to Buyer any disclosures or notices in connection with the transfer or proposed transfer
of the Property.

 

7.1.7.          Bankruptcy
Proceedings.   No Bankruptcy, insolvency, rearrangement or similar action involving Seller, whether voluntary or involuntary,
is pending or threatened, and Seller has never:

 

		(i)	filed a voluntary petition in bankruptcy;

 

    	23

    	 

    

 

		(ii)	been adjudicated a bankrupt or insolvent or filed a petition or action seeking any reorganization,
arrangement, recapitalization, readjustment, liquidation, dissolution or similar relief under any Federal bankruptcy act or any
other laws;

 

		(iii)	sought or acquiesced in the appointment or any trustee, receiver or liquidator of all or any substantial
part of its or his properties, the Land and Improvements, personal property or any portion thereof, or

 

		(iv)	made an assignment for the benefit of creditors or admitted in writing its or his inability to
pay its or his debts generally as the same become due.

 

7.1.8.          Possessory
Rights.       At the Closing, no one will have any right to possession of the Property except Buyer, tenants under residential Leases
for the Project and any third parties having rights under the Permitted Exceptions as set forth in the instruments creating the
Permitted Exceptions.

 

7.1.9.          Condemnation.
Seller represents to Buyer that Seller has no knowledge of any pending or threatened proceeding for a taking or condemnation of
the Property or for a rezoning of the Property.

 

7.1.10.         Violations
of Laws.   Seller has not received any written notice of any violation of applicable law or pending or threatened action or proceeding
pending, and to Seller’s knowledge, no such action or proceeding is threatened, against or relating to the Property or Seller.

 

7.1.11.         ERISA.
    The Property is not a “plan asset” as defined in ERISA and the sale of the Property by Seller is not a “prohibited
transaction” under ERISA. No collective bargaining agreements between Seller and any labor organization apply to the operation
and/or management of the Property and, to Seller’s knowledge, no organizational efforts are being made with regard to the
Property. No pension, retirement, profit-sharing or similar plan or fund, ERISA-qualified or otherwise, has been established by
or on behalf of Seller with respect to the operation and/or management or the Property and Seller has no liabilities for pension
or retirement payments with respect to the operation and/or management of the Property.

 

7.1.12.         Hazardous
Materials.     To Seller’s knowledge, Seller has received no written notice of any proceeding or inquiry pending before or
by any governmental authority with respect to the presence of any hazardous materials on the Property or their migration from or
to other property. As used herein, the term “hazardous material” shall mean any hazardous, toxic, radioactive or dangerous
waste, substance or material defined as such in or for the purposes of the Comprehensive Environmental Response Compensation and
Liability Act of 1980 (“CERCLA”), The Resource Conservation Recovery Act (“RCRA”), the Superfund Amendment
Reauthorization Act (“SARA”), any so-called superfund or superlien law or any other federal, state or local statute
law, ordinance, code, rule, regulation, order, decree, regulating, relating to or imposing liability or standards of conduct concerning
any hazardous, toxic or dangerous waste, substance or material, as now or any time hereafter in effect, and any petroleum product.

 

    	24

    	 

    

 

7.1.13.         OFAC.
  Seller has no knowledge of any violation by Seller or, without any inquiry, by the entity which has held title to the Property
during the five years preceding the Closing Date of (a) the PATRIOT Act, Pub. L. No. 107-56, the Bank Secrecy Act, 31 U.S.C. §
5311 et seq., the Money Laundering Control Act of 1986, and laws relating to the prevention and detection of money laundering in
18 U.S.C. §§ 1956 and 1957; (b) the Export Administration Act (50 U.S.C. §§ 2401-2420), the International Emergency
Economic Powers Act (50 U.S.C. § 1701, et seq.), the Arms Export Control Act (22 U.S.C. §§ 2778-2994), the Trading
With The Enemy Act (50 U.S.C. app. §§ 1-44), and 13 U.S.C. Chapter 9; (c) the Foreign Asset Control Regulations contained
in 31 C.F.R., Subtitle B, Chapter V; and (d) any other civil or criminal federal or state laws, regulations, or orders of similar
import. Seller is not an entity with whom Buyer is prohibited from engaging in this transaction due to any United States government
embargos, sanctions, or terrorism or money laundering laws, including, without limitation, due to Seller or any party that has
ownership in or control over Seller (each, a “Seller Party”) being (1) subject to United States government embargos
or sanctions, (2) in violation of terrorism or money laundering laws, or (3) listed on a published United States government list
(e.g., Specially Designated Nationals and Blocked Persons List maintained by the Office of Foreign Assets Control or other lists
of similar import).

 

7.1.14.         Property
Information.   To Seller’s knowledge, the Property Information is true, accurate and complete in all material respects.

 

7.1.15.         Knowledge.
   The person(s) identified in Section 8.17 are the person(s) most likely to have knowledge concerning the Property and the
various applicable matters and items set forth in this Section 7.1.

 

7.1.16.         New
Materials.     Seller warrants to Buyer that all materials and equipment furnished under this Agreement will be new, unless otherwise
specified.

 

7.2.          Buyer’s
Representations and Warranties.    As a material inducement to Seller to execute this Agreement and consummate this transaction,
Buyer represents and warrants to Seller that:

 

7.2.1.          Organization
and Authority.    Buyer has been duly organized and is validly existing as a limited partnership in good standing in the State
of Delaware. Buyer has the full right and authority and has obtained any and all consents required therefor to enter into this
Agreement. This Agreement and all of the documents to be delivered by Buyer at the Closing have been, or prior to Closing will
be, authorized and properly executed and will constitute the valid and binding obligations of Buyer, enforceable in accordance
with their terms.

 

7.2.2.          Conflicts
and Pending Action.   There is no agreement to which Buyer is a party or binding on Buyer which is in conflict with this Agreement.
There is no action or proceeding pending or, to Buyer’s knowledge, threatened against Buyer which challenges or impairs Buyer’s
ability to execute or perform its obligations under this Agreement.

 

7.2.3.          Knowledge.
  The person(s) identified in Section 8.16 are the person(s) most likely to have knowledge concerning the Property and the
various applicable matters and items set forth in this Section 7.2.

 

    	25

    	 

    

 

7.3.          Survival
of Representations and Warranties.   The representations and warranties set forth in this Article 7 are made as of the
date of this Agreement and shall be restated as of the Closing Date (as set forth below) and shall not be deemed to be merged
into or waived by the instruments of Closing, but shall survive the Closing. All representations and warranties contained in this
Agreement and so reconfirmed shall survive for a period of twelve (12) months following the Closing Date. At Closing, Seller and
Buyer each shall deliver to the other a certificate (in the form of Exhibit F attached hereto) in which the parties
restate as of the Closing Date their respective representations and warranties set forth in this Article 7, except that
the parties shall modify such representations and warranties to the extent that circumstances have changed, such that such representations
are untrue as of Closing. If Buyer or Seller modifies such representations and warranties and if the other party does not consent
to, approve of or authorize such changed circumstances, such other party may terminate this Agreement by delivering a notice to
the other party on or before the Closing Date, or elect to close notwithstanding the modification of such representations and
warranties as provided herein. Seller shall have no liability to Buyer with respect to Seller’s representations and warranties
herein unless and until the damages suffered by Buyer as a result thereof shall equal or exceed $50,000.00 in the aggregate, and
the maximum total liability for which Seller shall be responsible with respect to all representations and warranties shall not
exceed the amount of $1,750,000.00 in the aggregate (the “Maximum Liability Amount”). During the twelve (12)
month period following the Closing, Seller agrees to maintain its entity existence. Seller shall have no liability to Buyer after
Closing for any matter disclosed by Seller or learned by Buyer prior to Closing.

 

7.4.          “As
Is” Sale.     Except as expressly set forth in this Agreement, Seller makes no representations or warranties, express and
implied, regarding the physical condition of the Property, the presence or absence of hazardous materials on or emanating from
the Real Property, the compliance by the Property with any applicable governmental requirement, or any other aspect of the Property.
By execution of this Agreement, Buyer agrees that neither Seller nor Seller’s agents or representatives have made, and Buyer
has not relied upon, any representation or warranty of any kind which is not expressly set forth or provided for in this Agreement,
and Buyer shall acquire the Property in its physical condition as of the date of Closing “as is” and “with all
faults” subject to the terms and conditions of this Agreement.

 

ARTICLE
8:MISCELLANEOUS

 

8.1.          Parties
Bound.    Neither party may assign this Agreement without the prior written consent of the other, and any such prohibited assignment
shall be void; provided, however, that Buyer may assign this Agreement to a wholly owned direct or remote subsidiary or name a
nominee to take title to the Property at the Closing. Subject to the foregoing, this Agreement shall be binding upon and inure
to the benefit of the respective legal representatives, successors, assigns, heirs, and devisees of the parties, including, without
limitation, any Buyer’s nominee. No assignment shall relieve the assignor of any obligation under this Assignment whether
arising before or after such assignment. Notwithstanding any such assignment, the assignor shall remain jointly, severally and
primarily liable for the performance of the obligations of the assignor hereunder.

 

8.2.          Headings.
  The article, section, subsection and paragraph headings of this Agreement are for convenience only and in no way limit or enlarge
the scope or meaning of the language hereof.

 

    	26

    	 

    

 

8.3.          Invalidity
and Waiver.   If any portion of this Agreement is held invalid or inoperative, then so far as is reasonable and possible the
remainder of this Agreement shall be deemed valid and operative, and effect shall be given to the intent manifested by the portion
held invalid or inoperative. The failure by either party to enforce against the other any term or provision of this Agreement
shall be deemed not to be a waiver of such party’s right to enforce against the other party the same or any other such term
or provision.

 

8.4.          Governing
Law.    This Agreement and other related instruments and documents shall, in all respects, be governed, construed, applied, and
enforced in accordance with the law of the state in which the Real Property is located (i.e., the State of North Carolina).

 

8.5.          Survival.
  The provisions of this Agreement that contemplate performance after the Closing and the obligations of the parties not fully performed
at the Closing shall survive the Closing and shall not be deemed to be merged into or waived by the instruments of Closing.

 

8.6.          No
Third Party Beneficiary.   This Agreement is not intended to give or confer any benefits, rights, privileges, claims, actions
or remedies to any person or entity as a third party beneficiary, decree, or otherwise.

 

8.7.          Entirety
and Amendments.

 

8.7.1.     Entire
Agreement.      This Agreement embodies the entire agreement between the parties and supersedes all prior agreements and understandings
relating to the Property.

 

8.7.2.     Amendments.
  This Agreement may be amended or supplemented only by an instrument in writing executed by the party against whom enforcement is
sought.

 

8.8.          Time.
   Time is of the essence in the performance of this Agreement.

 

8.9.          Confidentiality.
  Seller shall make no public announcement of this Agreement or the identity of Buyer (or any affiliate of Buyer, including, without
limitation, Buyer’s parent entity or members) before or after the Closing (and shall instruct its agents, representatives
and employees, including, without limitation, Broker to act likewise), except as may be required by applicable law. Seller may
make disclosure of this Agreement (a) to its lenders, creditors, officers, employees, attorneys, surveyors, and agents, as well
as Title Company and Escrow Company, as necessary to perform Seller’s obligations hereunder and to respond to inquiries
of appraisers and brokers and (b) to the extent required by law.

 

8.10.         Attorneys’
Fees.   Should either party employ attorneys to enforce any of the provisions hereof, the party losing in any final judgment
agrees to pay the prevailing party all reasonable costs, charges and expenses, including attorneys’ fees, expended or incurred
in connection therewith.

 

8.11.         Notices.
  All notices required or permitted hereunder shall be in writing and shall be served on the parties at the following addresses:

 

	If to Seller:	c/o Woodfield Investment Company, LLC
	 	P.O. Box 1127
	 	Isle of Palms, South Carolina 29451
	 	Attention:  Gregory D. Bonifield
	 	Telephone:  (703) 728-8349
	 	Facsimile:  (703) 286-7283
	 	Email:    gbonifield@wfinvest.net

 

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	With a copy to:	K&L Gates LLP
	 	214 North Tryon Street, Suite 4700
	 	Charlotte, North Carolina 28202
	 	Attention:  David H. Jones
	 	Telephone:  (704) 331-7481
	 	Facsimile:  (704) 353-3181
	 	Email: david.jones@klgates.com
	 	 
	If to Buyer:	Trade Street Operating Partnership, LP
	 	19950 W. Country Club Drive
	 	Suite 801
	 	Aventura, Florida 33180
	 	Attention:  Greg Baumann
	 	Telephone: (786) 248-6050
	 	Facsimile: (786) 248-3679
	 	Email: GBaumann@Trade-Street.com

 

	With a copy to:	Bass, Berry & Sims, PLC
	 	100 Peabody Place, Suite 900
	 	Memphis, Tennessee 38103
	 	Attention:  T. Gaillard Uhlhorn
	 	Telephone: (901) 543-5943
	 	Facsimile:  (901) 543-5999
	 	E-mail:  guhlhorn@bassberry.com

 

	If to Escrow Holder/	 
	Title Company:	Fidelity National Title Insurance Company
	 	200 Galleria Parkway SE, Suite 2060
	 	Atlanta, GA  30339
	 	Attention: Leslie M. Flowers
	 	Telephone: (678) 718-1422
	 	Facsimile:  (678) 213-1649
	 	E-mail:  Leslie.Flowers@fntg.com

 

Any such notices shall
be either (a) sent by overnight delivery using a nationally recognized overnight courier, in which case it shall be deemed delivered
one business day after deposit with such courier, (b) sent by telefax, in which case notice shall be deemed delivered upon transmission
of such notice (provided that confirmation of such transmission is provided), (c) sent by email in which case notice shall be deemed
delivered when the sender’s equipment indicates it has been sent or (d) sent by personal delivery. The above addresses may
be changed by written notice to the other party; provided, however, that no notice of a change of address shall be effective until
actual receipt of such notice. Copies of notices are for informational purposes only, and a failure to give or receive copies of
any notice shall not be deemed a failure to give notice. In the event that any such notice is given by telefax, the party sending
the telefax shall exercise reasonable efforts to send a hard copy of such telefax by one of the other methods of notice hereunder,
but failure to exercise such efforts shall not be deemed a failure to give notice by telefax.

 

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8.12.         Construction.
   The parties acknowledge that the parties and their counsel have reviewed and revised this Agreement and that the normal rule of
construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation
of this Agreement or any exhibits or amendments hereto.

 

8.13.         Calculation
of Time Periods.    Unless otherwise specified, in computing any period of time described herein, the day of the act or event
after which the described period of time begins to run is not to be included and the last day of the period so computed is to
be included, unless such last day is a Saturday, Sunday or legal holiday in the state in which the Property is located, in which
event the period shall run until the end of the next day which is neither a Saturday, Sunday, or legal holiday in the state in
which the Property is located. The last day of any period of time described herein shall be deemed to end at 5:00 p.m. Eastern
Time.

 

8.14.         Further
Assurances.   In addition to the acts and deeds recited herein and contemplated to be performed, executed and/or delivered by
the parties hereto at Closing, each party agrees to perform, execute and deliver on or after the Closing any further deliveries
and assurances as may be reasonably necessary to consummate the transactions contemplated hereby or to further perfect the conveyance,
transfer and/or assignment of the Property to Buyer.

 

8.15.         Termination
of Contract.

 

8.15.1.   Termination.
    When the terms “termination of” or “to terminate” this Agreement or words of like import
are used herein, such terms shall mean that, provided the party terminating has a right to terminate this Agreement, (i) Seller
shall not be obligated to transfer title to the Property to Buyer, (ii) Buyer shall not be obligated to pay the Purchase Price,
(iii) Buyer shall be entitled to the return and disbursement of the Earnest Money (plus interest earned thereon) to it (except
if such termination resulted from a breach of or default or failure to perform by Buyer under this Agreement), (iv) following such
termination, neither party shall incur any further obligation to the other pursuant to this Agreement (except (a) if such termination
resulted from a breach of or default or failure to perform under this Agreement, in which case the party that has not breached,
defaulted or failed to perform shall have the rights and remedies provided in or pursuant to this Agreement, but subject to any
applicable limitations set forth in this Agreement and (b) to the extent provided in provision (v) of this Section 8.15.1),
and (v) any indemnification and hold harmless obligations of either party shall survive such termination.

 

8.15.2.   Pre-Closing
Remedies.     In the event that, prior to the Closing, Buyer obtains actual knowledge of a material breach, default or failure
to perform by Seller, including the material breach or failure of any representation or warranty made by Seller, Buyer may either
(i) waive such breach, default or failure and proceed to Closing (and, consistent with Section 5.3.3, in the event that,
prior to the Closing, Buyer obtains actual knowledge of a material breach, default or failure to perform by Seller if Buyer nonetheless
proceeds to Closing and acquires the Property, then such actually known material breach, default or failure to perform shall be
deemed waived, Buyer shall have no right or remedy with respect thereto and Seller shall have no obligation, liability or duty
thereafter) or (ii) at Buyer’s election, and as Buyer’s sole and exclusive remedies in such event (as distinct from
those set forth and/or covered by Section 8.15.3), (a) bring an action to obtain specific performance of this Agreement
against Seller or obtain injunctive relief to prevent a breach of the terms of this Agreement or (b) terminate this Agreement,
in which event the Escrow Holder shall refund to Buyer the full amount of the Earnest Money and Buyer shall be paid by Seller Buyer’s
actual and verifiable out-of-pocket costs relating directly to this transaction in an amount not to exceed $50,000.00; provided,
however, that, in any event where provision (b) above shall apply, Seller shall, if Seller so elects, have a period of up to thirty
(30) days to correct and cure such breach and the Closing Date shall be extended to the extent necessary to accommodate such cure
period.

 

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8.15.3.   Post-Closing.
 Except as specifically limited in this Agreement (see Section 7.3 and Section 8.15.2 above), Buyer’s
rights and remedies in the event of a breach, default or failure of performance by Seller (including, without limitation, a breach
or failure of a Seller’s representation or warranty) shall not be limited and Buyer shall have all rights and remedies provided
by law, equity or otherwise.

 

8.16.         Knowledge
of Buyer.     For all purposes of this Agreement, the knowledge of Buyer is deemed to be the actual knowledge of Ryan L. Hanks.

 

8.17.         Knowledge
of Seller.  For all purposes of this Agreement, the knowledge of Seller is deemed to be the actual knowledge of Gregory D.
Bonifield and Michael A. Underwood. For purposes of this Agreement, including, without limitation, not only this Section 8.17,
but also Section 8.16, actual knowledge or awareness shall not include any item, thing or matter with respect to which
the knowledge or awareness is only constructive or imputed.

 

8.18.         Exhibits.
  Each exhibit referenced herein and attached hereto is incorporated herein by this reference as if set forth in this Agreement
in full.

 

8.19.         Counterparts.
  This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, but all of which shall
constitute only one contract. To facilitate execution of this Agreement, the parties may execute and exchange, by telephone facsimile
or electronic mail, counterparts of the signature page(s).

 

8.20.         Return
of Materials.   Upon termination of this Agreement by Buyer pursuant to any provision providing Buyer a right of termination
and without cost or expense to Seller, Buyer shall immediately return to Seller all materials previously provided by Seller to
Buyer and provide to Seller all materials obtained by Buyer in the process of its due diligence and inspections relating to the
acquisition of the Property except for (i) Buyer’s market and economic feasibility analysis and (ii) any documents, materials
or information which are subject to attorney/client, work product or similar privilege, which constitute attorney communications
with respect to Buyer, or which are subject to a confidentiality agreement.

 

    	30

    	 

    

  

8.21.         1031
Exchange.   Either party may consummate the transfer of the Property pursuant to this Agreement as part of a so-called “like
kind” exchange (“Exchange”) pursuant to Section 1031 of the Internal Revenue Code of 1986, as amended
(“Code”), provided that: (i) the Closing shall not be delayed or affected by reason of the Exchange nor shall
the consummation or accomplishment of the Exchange be a condition precedent or condition subsequent to Seller’s obligations
under this Agreement; (ii) the exchanging party shall effect the Exchange through an assignment of this Agreement, or its rights
under this Agreement, to a qualified intermediary and otherwise in complete compliance with the terms and provisions of this Agreement;
(iii) the non-exchanging party shall not be required to take an assignment of the purchase agreement for any relinquished or to
be acquired property or be required to acquire or hold title to any real property (other than the Property) for purposes of consummating
the Exchange; and (iv) the exchanging party shall pay any and all additional costs and/or expenses that would not otherwise have
been incurred by Seller or Buyer had such party not consummated its purchase through the Exchange, including, without limitation,
actual attorneys’ fees (such as, for example, but not by way of limitation, actual attorneys’ fees incurred by the
other party in having its counsel review any document or instrument related to the Exchange). The non-exchanging party shall not
by the agreement set forth in this Section 8.21 or acquiescence to the Exchange (a) have its rights under this Agreement
affected or diminished in any manner or (b) be responsible for compliance with or be deemed to have warranted to Seller that the
Exchange in fact complies with Section 1031 of the Code or any other applicable law, rule or regulation. Subject always to the
foregoing, the non-exchanging party agrees to cooperate with the exchanging party, at no cost and with no liability to the non-exchanging
party, to effect the Exchange.

 

8.22.         Rule
3.14 Audit.   Until Closing and for a period of one year following the Closing Date, Seller agrees to provide to Buyer and Buyer’s
accountants such information (including, without limitation, bank statements, rent rolls and property-level accounting records)
reasonably requested by Buyer for the purpose of preparing a property-level Statement of Revenues and Certain Expenses (“Rule
3-14 Financials”) as required by Rule 3-14 of Securities and Exchange Commission Regulation S-X and sufficient to support
an audit opinion by an independent accounting firm with respect to the Rule 3-14 Financials; provided, that Seller shall not be
required to incur any third party costs or expenses in connection therewith nor shall Seller be required to make any representations
or warranties with respect to such information beyond a customary representation letter reasonably requested by any accounting
firm engaged by Buyer to deliver its auditors report with respect to the Rule 3-14 Financials.

 

[signatures on following
page]

 

    	31

    	 

    

 

SIGNATURE PAGE TO

PURCHASE AND SALE AGREEMENT

DATED OCTOBER 29, 2012, BY AND BETWEEN

WAKE FOREST APARTMENTS LLC

AND TRADE STREET OPERATING PARTNERSHIP, LP

 

IN WITNESS WHEREOF,
the parties hereto have executed this Agreement as of the Date of Agreement.

 

	 	SELLER:
	 	 
	 	WAKE FOREST APARTMENTS LLC,
	 	a North Carolina limited liability company
	 	 	 
	 	By:	Woodfield Investment Company, LLC,
	 	 	a Delaware limited liability company,
	 	 	its Manager

 

	 	By:	/s/ Gregory D. Bonifield
	 	 	Gregory D. Bonifield, Manager

 

	 	BUYER:
	 	 
	 	TRADE STREET OPERATING 

PARTNERSHIP, LP,
	 	a Delaware limited partnership
	 	 	 
	 	By:	Trade Street OP GP, LLC,
	 	 	a Delaware limited liability company,
	 	 	its General Partner

 

	 	By:	Trade Street Residential, Inc.,
	 	 	a Maryland corporation,
	 	 	its Sole Member

 

	 	By:	/s/ Bert Lopez
	 	Name:	Bert Lopez
	 	Title:	Chief Financial Officer

 

    	32

    	 

    

 

AGREED, ACCEPTED AND
ACKNOWLEDGED BY the undersigned Escrow Holder as provided and for the purposes set forth in Section 1.3 of this Agreement.

 

	 	ESCROW HOLDER:
	 	 
	 	FIDELITY TITLE INSURANCE COMPANY
	 	 	 
	 	By:	/s/ Leslie M. Flowers
	 	Name:	Leslie M. Flowers
	 	Title:	Title Officer
	 	Date:	October 30, 2012

 

    	33

    	 

    

 

LIST OF EXHIBITS

 

	EXHIBIT A:	DESCRIPTION OF THE PROPERTY
	 	 
	EXHIBIT B	SELLER’S OR OWNER’S AFFIDAVITS
	 	 
	EXHIBIT C:	DEED
	 	 
	EXHIBIT D:	BILL OF SALE AND ASSIGNMENT
	 	 
	EXHIBIT E:	PLANS AND SPECIFICATIONS
	 	 
	EXHIBIT F:	CERTIFICATE OF RESTATEMENT OF REPRESENTATIONS AND WARRANTIES
	 	 
	EXHIBIT G:	FIRPTA AFFIDAVIT
	 	 
	EXHIBIT H:	OPEN DESIGN ITEMS
	 	 
	EXHIBIT I:	DEVELOPMENT BUDGET

 

List of Exhibits

 

    	 

    	 

    

 

EXHIBIT A

 

DESCRIPTION OF THE PROPERTY

 

BEING all of Lot 8 of
The Shoppes at Caveness Farms as recorded in Book of Maps 2007, Pages 86-88, Wake County Registry, LESS AND EXCEPT:

 

(1)          Lot 2G

 

(2)         that elliptical
shaped area designated as Ligon Mill Road Public R/W Dedication;

 

(3)         right-of-way for
Caveness Farms Ave.; and

 

(4)         Tract 2;

 

all as shown
on plats recorded in Book of Maps 2012, Pages 248-252, Wake County Registry;

 

AND being the same property
shown as Tract 1 in Book of Maps 2012, Pages 248-252, Wake County Registry.

 

    	A-1

    	 

    

 

EXHIBIT B

 

SELLER’S OR OWNER’S
AFFIDAVITS

 

		·	NCLTA Form No. 2, Owner/Contractor Affidavit, Waiver of Liens and Indemnity Agreement (Construction Recently Completed)

		·	Owner’s Affidavit

		·	Hold Harmless “Gap” Indemnity

 

[See Attached Pages]

 

    	B-1

    	 

    

 

EXHIBIT C

 

DEED

 

NORTH CAROLINA SPECIAL WARRANTY DEED

 

	Excise Tax $____________________
	 
	 
	Tax Lot No.:_____________________________ Parcel Identifier No. ____________________________________________
	 
	Verified by ____________________________________County on the ________ day of __________________ , 20_______
	 
	by _________________________________________________________________________________________________
	Mail after recording to:  ________________________________________________________________________________

 

	 
	 
	This instrument was prepared by:  ___________________________________________________________________

 

	Brief Description for the index 	 

 

THIS DEED made as of _______________ 200_
, by and between

	
        GRANTOR

         

         

         
	
        GRANTEE

          

         

         

         

         

         

	Enter in appropriate block for each party: name, address, and, if appropriate, character of entity, e.g., corporation or partnership.

 

The designation Grantor and Grantee as
used herein shall include said parties, their heirs, successors, and assigns, and shall include singular, plural, masculine, feminine
or neuter as required by context.

 

WITNESSETH, that the Grantor, for a valuable
consideration paid by the Grantee, the receipt of which is hereby acknowledged, has and by these presents does grant, bargain,
sell and convey unto the Grantee in fee simple, all that certain lot or parcel of land situated in ______________ Township, City
of __________________, _____________ County, North Carolina and more particularly described as follows:

 

That certain parcel of real property
more particularly described on Exhibit A attached hereto and incorporated herein by reference (the “Property”).

 

The Property hereinabove described was
acquired by Grantor by instrument recorded in Book _______________ at Page _________, ____________________
County Registry.

 

    	C-1

    	 

    

 

All or a portion of the property herein
conveyed ___ includes or  X  does not include the primary residence of a Grantor.

 

A map showing the above described property
is recorded in Plat Book ____ at Page ____.

 

TO HAVE AND TO HOLD the Property and all
privileges and appurtenances thereto belonging to the Grantee in fee simple.

 

And the Grantor covenants with the Grantee,
that Grantor has done nothing to impair such title as Grantor received, and Grantor will warrant and defend the title against the
lawful claims of all persons claiming by, under or through Grantor, except for those matters set forth on Exhibit B attached
hereto and incorporated herein by reference. [Exhibit B shall list the Permitted Exceptions as defined in the Purchase and
Sale Agreement between Grantor and Grantee]

 

IN WITNESS WHEREOF, the Grantor has caused this instrument to
be signed by its member/manager the day and year first above written.

 

	 	WAKE FOREST APARTMENTS LLC,
	 	a North Carolina limited liability company
	 	 
	 	Woodfield Investment Company, LLC,
	 	a Delaware limited liability company,
	 	its Manager

 

	 	By: 	 
	 	 	Gregory D. Bonifield, Manager

 

 

	SEAL-STAMP	State of North Carolina

 

	 	County of_______________________

 

	 	I certify that the following person personally appeared before me this day, acknowledging to me that s/he voluntarily signed the foregoing document for the purpose stated therein and in the capacity indicated: ________________________________________________________.
		(Print Name and Title)

 

	 	Date: _____________________, 200_	 	 
	 	 	 	Print/Typed Name:___________________
	 	 	 	Notary Public

 

	 	My commission expires:_____________________________

 

	 	[Notarial Seal]

 

    	C-2

    	 

    

 

EXHIBIT “A”

 

The Property

 

BEING all of Lot 8 of
The Shoppes at Caveness Farms as recorded in Book of Maps 2007, Pages 86-88, Wake County Registry, LESS AND EXCEPT:

 

		(1)	Lot 2G

 

		(2)	that elliptical shaped area designated as Ligon Mill Road Public R/W Dedication;

 

		(3)	right-of-way for Caveness Farms Ave.; and

 

		(4)	Tract 2;

 

all as shown
on plats recorded in Book of Maps 2012, Pages 248-252, Wake County Registry;

 

AND being the same property
shown as Tract 1 in Book of Maps 2012, Pages 248-252, Wake County Registry.

 

    	C-3

    	 

    

 

EXHIBIT D

 

BILL OF SALE AND ASSIGNMENT

 

THIS BILL OF SALE AND
ASSIGNMENT (“Assignment”) is made as of this ______ day of _______________, 20__, by and between WAKE FOREST APARTMENTS
LLC, a North Carolina limited liability company (“Assignor”) and [TRADE STREET ENTITY, a ________________]
(“Assignee”), with reference to the following facts:

 

A.           Assignor
is the owner of that certain real property consisting of 30 acres located along Caveness Farms Avenue in Wake Forest, Wake County,
North Carolina (the “Real Property”).

 

B.           Assignee
is about to acquire, from Assignor, Assignor’s interest in and to the Real Property and certain personal and other property
relating thereto (collectively, the “Property”), in accordance with the terms and conditions of that certain Purchase
and Sale Agreement made as of the __ day of ______________, 2012 (the “Purchase Agreement”), by and between Assignor,
as Seller, and Assignee, as Buyer;

 

C.           Assignee,
as a condition of the acquisition of the Property under the Purchase Agreement, has required the transfer and/or assignment of
certain tangible and intangible property and rights as a part of the Property being acquired;

 

NOW, THEREFORE, in
consideration of the foregoing premises, the promises and covenants contained herein and for other good and valuable consideration,
the receipt and sufficiency of which are acknowledged and confessed by each of the parties, the parties do hereby agree as follows:

 

1.          BILL
OF SALE

 

		(a)	Grant. Assignor hereby grants, sells, transfers, assigns, conveys and delivers to Assignee
all of Assignor’s right, title and interest in and to all furniture, furnishings, fixtures, equipment, appliances, supplies,
construction materials, machinery, signage and other personal property owned by Assignor and used in connection with the operation,
ownership or management of the Real Property, including, without limitation, those items listed and described in Schedule 1
attached hereto and incorporated herein by this reference (the “Personal Property”), it being understood and agreed
that, by its execution hereof, Assignee hereby accepts the Personal Property in its “AS IS”, “WHERE IS”
condition.

 

		(b)	Personal Property. The Personal Property is owned by Assignor and located on or in, attached
to, or used in connection with the Real Property or the improvements located thereon.

 

		(c)	Representation and Warranty. Assignor represents and warrants to Assignee, and its successors
and assigns, which representation and warranty shall survive the closing for the purchase of the Property, that the Personal Property
is free from all liens and encumbrances.

 

    	D-1

    	 

    

 

		(d)	Title. Assignee shall have and hold the Personal Property for itself and for its successors
and assigns, and, subject to the foregoing, Assignor does for itself, and its successors and assigns, covenant and agree with Assignee
to defend and warrant Assignee’s title to the Personal Property and the rights of Assignee, and its successors and assigns,
against each and every person claiming the Personal Property or any portion thereof.

 

2.          ASSIGNMENT
OF LEASES, INTANGIBLE AND OTHER PROPERTY AND RIGHTS. Assignor has granted, assigned, transferred, and set over, and by these
presents does hereby grant, assign, transfer and set over, to Assignee, to the extent lawfully assignable, all of Assignor’s
right, title, and interest in and to the following:

 

		(a)	All leases, subleases and other rental agreements (written or verbal) that grant a possessory interest
in and to the Property, including without limitation, all of the tenant leases described on the rent roll in Schedule 2
attached hereto and incorporated herein by reference (the “Leases”), together with all security deposits, fees
and prepaid rents paid in connection with such Leases;

 

		(b)	Grantor’s interest in the service contracts and all other agreements for the lease of furniture,
equipment or otherwise which are listed on Schedule 3 and attached hereto and incorporated herein by reference (“the
Contracts”);

 

		(c)	Any and all intangible property now or hereafter owned by Assignor in connection with the Property
including, without limitation, the intangible property, if any, described in Schedule 4 attached hereto and incorporated
herein by this reference;

 

		(d)	Assignor’s interest in all transferable warranties, guaranties, and bonds held by Assignor
pertaining to the building, improvements, fixtures, personalty and other properties comprising the Property;

 

		(e)	All permits, licenses, certificates of occupancy, use and operating permits and licenses, and all
other licenses and permits, approvals, and certificates obtained or held in connection with the ownership or use of the Property;

 

		(f)	The non exclusive right to use all trademarks, trade names, trade styles, logos, copyrights, designs,
artwork, graphics, and licenses owned by Assignor and used in connection with the operation of the Property, and the right to use
any item of the foregoing type; and

 

		(g)	All of the records, plans, specifications, maps, designs, reports, drawings, applications to governmental
entities and all other documents and agreements of alike nature relating to or prepared in connection with the use and operation
of the Property.

 

3.          ASSUMPTION
AND INDEMNITY

 

		(a)	It is understood and agreed that, by its execution hereof, Assignee hereby assumes and agrees to
perform all of the terms, covenants and conditions of the Leases, on the part of the lessor therein required to be performed from
and after the date hereof including, but not limited to, the obligation to repay, in accordance with the terms of such Leases,
to such lessees, all security deposits (to the extent such security deposits are delivered to Assignee by Assignor pursuant to
this Assignment) required to be repaid by the terms thereof and to indemnify, save and hold harmless Assignor from any and all
liability, claims or causes of action, loss, cost, or expense (including reasonable attorneys’ fees) arising out of or relating
to Assignee’s failure to perform any of the obligations of Assignor arising under the Leases from and after the date hereof,
or the claims of any tenants to security deposits, prepaid rents, future rent concessions or rebates which are transferred to Assignee
by Assignor pursuant to this Assignment.

 

    	D-2

    	 

    

 

		(b)	It is understood and agreed that, by its execution hereof, Assignee hereby assumes and agrees to
perform all of the terms, covenants and conditions contained in all Contracts and such other documents and instruments assigned
hereunder from and after the date hereof, to discharge any and all such obligations of Assignor under said Contracts, documents
and instruments promptly and to indemnify, save and hold harmless Assignor from any and all liability, claims, causes of action,
or expense (including reasonable attorneys’ fees) existing in favor of or asserted or claimed by other parties to said documents
or instruments, arising out of or relating to Assignee’s failure to perform any of the obligations of Assignor under the
Contracts and such other documents and instruments herein assigned from and after the date hereof.

 

		(c)	It is understood and agreed that, by its execution hereof, Assignor hereby agrees to indemnify,
save and hold harmless Assignee from any and all liability, claims or causes of action, loss, cost or expense (including reasonable
attorneys’ fees) arising out of or relating to Assignor’s failure to perform any of the obligations of Assignor under
the Leases prior to the date hereof. Assignor hereby further agrees to indemnify, save and hold harmless Assignee from any and
all liability, claims, causes of action, or expense (including reasonable attorneys’ fees) existing in favor of or asserted
or claimed by other parties to any Contracts, or other documents or instruments assigned hereunder, arising out of or relating
to Assignor’s failure to perform any of the obligations of Assignor under the Contracts and such other documents and instruments
herein assigned prior to the date hereof.

 

4.          BINDING
ON SUCCESSORS AND ASSIGNS

 

		(a)	All the covenants and agreements of Assignor herein contained shall apply to and bind Assignor
and Assignor’s executors, agents, administrators, representatives, heirs, invitees, successors and assigns

 

		(b)	All the covenants and agreements of Assignee herein contained shall apply to and bind Assignee
and Assignee’s executors, agents, administrators, personal representatives, heirs, invitees, successors and assigns.

 

		(c)	The term “Assignee” as used in this Assignment shall mean and include Assignee’s
successors and assigns.

 

5.          ATTORNEYS’
FEES

 

In the event of any
litigation between Assignor and Assignee arising out of the obligations of Assignor or Assignee under this Assignment or concerning
the meaning or interpretation of any provision contained herein, the losing party shall pay the prevailing party’s costs
and expenses of such litigation, including without limitation reasonable attorneys’ fees.

 

6.          EFFECTIVE
DATE

 

The effective date
of this Assignment shall be the closing date for the purchase of the Property by Assignee pursuant to the Purchase Agreement.

 

    	D-3

    	 

    

 

7.          COUNTERPARTS

 

		(a)	This Assignment may be executed in one (1) or more counterparts, all of which together shall constitute
a single agreement and each of which shall be an original for all purposes.

 

		(b)	To facilitate execution and delivery of this Assignment, the parties may execute and exchange,
by facsimile or otherwise, counterparts of the signature page(s).

 

8.          GOVERNING
LAW

 

This Assignment shall
be governed by, interpreted under and construed and enforced in accordance with the laws of the State of North Carolina.

 

IN WITNESS WHEREOF,
this Assignment has been executed by Assignee and Assignor as of the date first set forth above.

 

	 	“ASSIGNOR”
	 	 
	 	WAKE FOREST APARTMENTS LLC,
	 	a North Carolina limited liability company
	 	 	 
	 	By:	Woodfield Investment Company,
	 	 	a Delaware limited liability company,
	 	 	its Manager

 

	 	By:	 
	 	Name:	 
	 	Title:	 

 

	 	“ASSIGNEE”
	 	 
	 	[TRADE STREET ENTITY],
	 	[a _____________________]

 

	 	By:	 
	 	Name:	 
	 	Title:	 

 

    	D-4

    	 

    

 

Schedule 1

Personal Property

(to be provided at
closing)

  

Schedule 1 to Bill of
Sale and Assignment

 

    	 

    	 

    

 

Schedule 2

Leases

(to be provided at
closing)

 

Schedule 2 to Bill of
Sale and Assignment

 

    	 

    	 

    

 

Schedule 3

Contracts

(to be provided at
closing)

 

Schedule 3 to Bill of
Sale and Assignment

 

    	 

    	 

    

 

Schedule 4

Intangible Property

(to be provided at
closing)

 

Schedule 4 to Bill of
Sale and Assignment

 

    	 

    	 

    

 

EXHIBIT E

 

PLANS AND SPECIFICATIONS

 

(to be attached)

 

    	E-1

    	 

    

 

EXHIBIT F

 

CERTIFICATE OF RESTATEMENT OF

REPRESENTATIONS AND WARRANTIES

 

_______________, a
________________ limited liability company (“[Seller/Buyer]”), hereby restates all of its representations and
warranties set forth in [Section 7.1/7.2] of that certain Purchase and Sale Agreement (the “Purchase Agreement),
dated as of _____________ __, 2012, entered into by and between [Seller/Buyer] and ________________, a ___________, as “[Buyer/Seller]”,
and further declares, certifies, represents, warrants and covenants that [, except as stated in Exhibit 1 attached
hereto,]1 all such representations and warranties
are true, correct and in full force and effect as of the date of the execution of this certificate. In addition, [Seller/Buyer]
agrees that the representations and warranties shall survive such closing, including without limitation the “Closing
Date” and the “Closing” (as those terms are defined in the Purchase Agreement) in accordance with the terms of
Section 7.3 of the Purchase Agreement.

 

This certificate is
made and entered into for the benefit of [Buyer/Seller] and its successors and assigns under the Purchase Agreement [and
to the “Property” (as that term is defined in the Agreement) acquired pursuant thereto]. [Seller/Buyer] understands,
acknowledges and agrees that [Buyer/Seller] and its successors and assigns are entitled to rely upon this certificate.

 

Executed as of the
___ day of ________, 20__.

 

	 	“[Seller/Buyer]”
	 	 
	 	____________________________
	 	a ___________________________

 

	 	By:	 
	 	Name:	 
	 	Title:	 

 

 

 

1 This bracketed language shall
only be included and Exhibit 1 shall only be referenced and attached (and information shall only be set forth therein) if and to
the extent appropriate under the provisions of Subsection 5.2.3 or Section 7.3 of the Purchase Agreement. This footnote
shall not appear in the final certificate executed by Seller/Buyer.

 

    	F-1

    	 

    

 

EXHIBIT G

 

FIRPTA AFFIDAVIT

 

Section 1445 of the
Internal Revenue Code of 1986, as amended (the “Code”), provides that a transferee of a U.S. real property interest
must withhold tax if the transferor is a foreign person. For U.S. tax purposes (including Section 1445 of the Code), the owner
of a disregarded entity (which has legal title to a U.S. real property interest under local law) will be the transferor of the
property and not the disregarded entity. To inform the transferee that withholding of tax is not required upon the disposition
of a U.S. real property interest by WAKE FOREST APARTMENTS LLC, a North Carolina limited liability company (“Transferor”),
the undersigned hereby certifies the following on behalf of Transferor:

 

		1.	Transferor is not a foreign corporation, foreign partnership, foreign trust, or foreign estate
(as those terms are defined in the Code and Income Tax Regulations);

 

		2.	Transferor is not a disregarded entity as defined in §1.1445-2(b)(2)(iii) of the Income Tax
Regulations;

 

		3.	Transferor’s U.S. employer identification number is ___________________; and

 

		4.	Transferor’s office address is ______________________________________________.

 

Transferor understands
that this certification may be disclosed to the Internal Revenue Service by transferee and that any false statement contained herein
could be punished by fine, imprisonment, or both.

 

Under penalties of
perjury I declare that I have examined this certification and to the best of my knowledge and belief it is true, correct, and complete,
and I further declare that I have authority to sign this document on behalf of Transferor.

 

Dated: ____________,
20__

 

	 	TRANSFEROR
	 	 
	 	WAKE FOREST APARTMENTS LLC,
	 	a North Carolina limited liability company
	 	 	 
	 	By:	Woodfield Investment Company,
	 	 	a Delaware limited liability company,
	 	 	its Manager

 

	 	By:	 
	 	Name:	 
	 	Title:	 

 

    	G-1

    	 

    

 

EXHIBIT H

 

OPEN DESIGN ITEMS

 

(to be attached)

 

    	H-1

    	 

    

 

EXHIBIT I

 

DEVELOPMENT BUDGET

 

(to be attached)

 

    	I-1

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