Document:

Exhibit 10.273

 

Freddie Mac Loan Number: 932411177

Property Name: Sorrel at Phillips Creek Ranch

 

ASSIGNMENT OF MANAGEMENT AGREEMENT AND

SUBORDINATION OF MANAGEMENT FEES 

 

(Revised 5-1-2015)

 

THIS ASSIGNMENT OF MANAGEMENT
AGREEMENT AND SUBORDINATION OF MANAGEMENT FEES (“Assignment”) is made effective as of the 29th day of October,
2015, by and among BR CARROLL PHILLIPS CREEK RANCH, LLC, a Delaware limited liability company (“Borrower”),
CBRE CAPITAL MARKETS, INC., a Texas corporation (“Lender”), and CARROLL MANAGEMENT GROUP, LLC,
a Georgia limited liability company (“Property Manager”).

 

RECITALS:

 

		A.	Borrower has requested that Lender make a loan to Borrower
(“Loan”). The Loan will be evidenced by a Multifamily Note from Borrower to Lender effective as of the date
of this Assignment (“Note”). The Note is secured by, among other things, a Multifamily Loan and Security Agreement
(“Loan Agreement”) and a Multifamily Deed of Trust, Assignment of Rents, Security Agreement and Fixture Filing
(“Security Instrument”), dated as of the date of this Assignment, which grants Lender a first lien on the property
encumbered by the Security Instrument (“Mortgaged Property”). The Note, the Loan Agreement, the Security Instrument,
this Assignment and any of the other documents evidencing the Loan are collectively referred to as the “Loan Documents”.
Other capitalized terms used but not defined in this Assignment will have the meanings given to those terms in the Loan Agreement.

 

		B.	Pursuant to a Management Agreement between Borrower and
Property Manager (“Management Agreement”) (a true and correct copy of which is attached as Exhibit A),
Borrower employed Property Manager exclusively to lease, operate and manage the Mortgaged Property, and Property Manager is entitled
to certain management fees (“Management Fees”) pursuant to the Management Agreement.

 

		C.	Lender requires as a condition to the making of the Loan
that Borrower assign the Management Agreement and that Property Manager subordinate its interest in the Management Fees in lien
and payment to the Loan as set forth below.

 

For good and valuable
consideration the parties agree as follows:

 

		1.	Assignment of Management Agreement. As additional
collateral security for the Loan, Borrower conditionally transfers, sets over, and assigns to Lender all of Borrower’s right,
title and interest in and to the Management Agreement and all extensions and renewals. This transfer and assignment will automatically
become a present, unconditional assignment, at Lender’s option, upon a default by Borrower under the Note, the Loan Agreement,
the Security Instrument or any of the other Loan Documents (each, an “Event of Default”), and the failure of
Borrower to cure such Event of Default within any applicable grace period.

 

    
Assignment of Management Agreement and
Subordination of Management Fees

     

    

 

		2.	Subordination of Management Fees. The Management
Fees and all rights and privileges of Property Manager to the Management Fees are and will at all times continue to be subject
and unconditionally subordinate in all respects in lien and payment to the lien and payment of the Loan Agreement, the Security
Instrument, the Note, and the other Loan Documents, and to any renewals, extensions, modifications, assignments, replacements,
or consolidations of the Loan Documents and the rights, privileges, and powers of Lender under the Note, the Loan Agreement, the
Security Instrument, or any of the other Loan Documents.

 

		3.	Estoppel. Property Manager and Borrower represent
and warrant that all of the following are true as of the date of this Assignment:

 

		(a)	The Management Agreement is in full force and effect
and has not been modified, amended or assigned other than pursuant to this Assignment.

 

		(b)	Neither Property Manager nor Borrower is in default under
any of the terms, covenants or provisions of the Management Agreement and Property Manager knows of no event which, but for the
passage of time or the giving of notice or both, would constitute an event of default under the Management Agreement.

 

		(c)	Neither Property Manager nor Borrower has commenced any
action or given or received any notice for the purpose of terminating the Management Agreement.

 

		(d)	The Management Fees and all other sums due and payable to the Property Manager under the Management
Agreement have been paid in full.

 

		4.	Agreement by Borrower and Property Manager. Borrower
and Property Manager agree that if there is an Event of Default by Borrower (continuing beyond any applicable grace period) under
the Note, the Loan Agreement, the Security Instrument or any of the other Loan Documents during the term of this Assignment or
upon the occurrence of any event which would entitle Lender to terminate the Management Agreement in accordance with the terms
of the Loan Documents, Lender may terminate the Management Agreement without payment of any cancellation fee or penalty and require
Property Manager to transfer its responsibility for the management of the Mortgaged Property to a management company selected
by Lender in Lender’s sole discretion, effective as of the date set forth in Lender’s notice to Property Manager.
Following any such termination, Property Manager agrees to apply all rents, security deposits, issues, proceeds and profits of
the Mortgaged Property in accordance with Lender’s written directions to Property Manager.

 

		5.	Lender’s Right to Replace Property Manager.
If Lender, in Lender’s reasonable discretion, at any time during the term of this Assignment, determines that the Mortgaged
Property is not being managed in accordance with generally accepted management practices for properties similar to the Mortgaged
Property, Lender will deliver written notice to Borrower and Property Manager, which notice will specify with particularity the
grounds for Lender’s determination. If Lender reasonably determines that the conditions specified in Lender’s notice
are not remedied to Lender’s reasonable satisfaction by Borrower or Property Manager within 30 days from receipt of such
notice or that Borrower or Property Manager have failed to diligently undertake correcting such conditions within such 30-day
period, Lender may direct Borrower to terminate Property Manager as manager of the Mortgaged Property and terminate the Management
Agreement without payment of any cancellation fee or penalty and to replace Property Manager with a management company acceptable
to Lender in Lender’s sole discretion pursuant to a management agreement acceptable to Lender in Lender’s sole discretion.

 

    	Assignment of Management Agreement and
Subordination of Management Fees
	Page 2

     

    

 

		6.	Receipt of Management Fees. Property Manager will
not be obligated to return or refund to Lender any Management Fees or other fee, commission or other amount received by Property
Manager prior to the occurrence of the Event of Default, and to which Property Manager was entitled under the Management Agreement.
If the Property Manager receives any Management Fees after it has received notice of an Event of Default, Property Manager agrees
that such Management Fees will be received and held in trust for Lender, to be applied by Lender to amounts due under the Loan
Documents.

 

		7.	Consent and Agreement by Property Manager. Property
Manager acknowledges and consents to this Assignment and agrees that Property Manager will act in conformity with the provisions
of this Assignment and Lender’s rights under this Assignment or otherwise related to the Management Agreement. If the responsibility
for the management of the Mortgaged Property is transferred from Property Manager in accordance with the provisions of this Assignment,
then Property Manager will fully cooperate in transferring its responsibility to a new management company and complete such transfer
no later than 30 days from the date the Management Agreement is terminated. Further, Property Manager agrees as follows:

 

		(a)	It will not contest or impede the exercise by Lender of any right Lender has under or in connection
with this Assignment.

 

		(b)	It will give at least 30 days prior written notice to Lender of its intention to terminate the
Management Agreement or otherwise discontinue its management of the Mortgaged Property, in the manner provided for in this Assignment.

 

		(c)	It will not amend any of the provisions or terms of the Management Agreement without the prior
consent of Lender.

 

		8.	Termination. When the Loan is paid in full and
the Security Instrument is released or assigned of record, this Assignment and all of Lender’s right, title and interest
hereunder with respect to the Management Agreement will terminate.

 

		9.	Notices.

 

		(a)	All notices under or concerning this Assignment (“Notice”)
will be in writing. Each Notice will be deemed given on the earliest to occur of: (i) the date when the Notice is received by
the addressee, (ii) the first Business Day after the Notice is delivered to a recognized overnight courier service, with arrangements
made for payment of charges for next Business Day delivery, or (iii) the third Business Day after the Notice is deposited in the
United States mail with postage prepaid, certified mail, return receipt requested. Addresses for Notice are as follows:

 

	 	If to Lender:	CBRE Capital Markets, Inc.
	 	 	c/o GEMSA Loan Services, L.P., 929 Gessner Road, Suite 1700,
	 	 	Houston, Texas 77024
	 		Attention: Chief Legal Officer

 

    	Assignment of Management Agreement and
Subordination of Management Fees
	Page 3

     

    

 

	 	If to Borrower:	BR Carroll Phillips Creek Ranch, LLC
	 	 	c/o Carroll Organization, LLC, 3340 Peachtree Road, 

Suite 1620, Atlanta, Georgia 30326
	 	 	Attention: Josh Champion
	 	 	 
	 	If to Property Manager:	Carroll Management Group, LLC
	 	 	c/o Carroll Organization, LLC
	 	 	3340 Peachtree Rd, Suite 1620
	 	 	Atlanta, Georgia 30326
	 	 	Attention: Josh Champion

 

		(b)	Any party to this Assignment may change the address to
which Notices intended for it are to be directed by means of Notice given to the other parties in accordance with this Section
9. Each party agrees that it will not refuse or reject delivery of any Notice given in accordance with this Section 9, that it
will acknowledge, in writing, the receipt of any Notice upon request by the other party and that any Notice rejected or refused
by it will be deemed for purposes of this Section 9 to have been received by the rejecting party on the date so refused or rejected,
as conclusively established by the records of the U.S. Postal Service or the courier service.

 

		10.	Governing Law; Consent to Jurisdiction and Venue.

 

		(a)	This Assignment will be construed in accordance with
and governed by the laws of the Property Jurisdiction.

 

		(b)	Borrower and Property Manager agree that any controversy
arising under or in relation to this Assignment may be litigated in the Property Jurisdiction. The state and federal courts and
authorities with jurisdiction in the Property Jurisdiction will have jurisdiction over all controversies that may arise under
or in relation to this Assignment. Borrower and Property Manager irrevocably consent to service, jurisdiction and venue of such
courts for any such litigation and waive any other venue to which it might be entitled by virtue of domicile, habitual residence
or otherwise. However, nothing in this Section 10 is intended to limit Lender’s right to bring any suit, action or
proceeding relating to matters under this Assignment in any court of any other jurisdiction.

 

		11.	Captions, Cross References and Exhibits. The captions
assigned to provisions of this Assignment are for convenience only and will be disregarded in construing this Assignment. Any
reference in this Assignment to an “Exhibit” or a “Section,” unless otherwise explicitly provided, will
be construed as referring, respectively, to an Exhibit attached to this Assignment or to a section of this Assignment. All Exhibits
attached to or referred to in this Assignment are incorporated by reference into this Assignment.

 

		12.	Number and Gender. Use of the singular in this
Assignment includes the plural, use of the plural includes the singular, and use of one gender includes all other genders, as
the context may require.

 

		13.	No Partnership. This Assignment is not intended
to, and will not, create a partnership or joint venture among the parties, and no party to this Assignment will have the power
or authority to bind any other party except as explicitly provided in this Assignment.

 

    	Assignment of Management Agreement and
Subordination of Management Fees
	Page 4

     

    

 

		14.	Severability. The invalidity or unenforceability
of any provision of this Assignment will not affect the validity of any other provision, and all other provisions will remain
in full force and effect.

 

		15.	Entire Assignment. This Assignment contains the
entire agreement among the parties as to the rights granted and the obligations assumed in this Assignment.

 

		16.	No Waiver; No Remedy Exclusive. Any forbearance
by a party to this Assignment in exercising any right or remedy given under this Assignment or existing at law or in equity will
not constitute a waiver of or preclude the exercise of that or any other right or remedy. Unless otherwise explicitly provided,
no remedy under this Assignment is intended to be exclusive of any other available remedy, but each remedy will be cumulative
and will be in addition to other remedies given under this Assignment or existing at law or in equity.

 

		17.	Third Party Beneficiaries. Neither any creditor
of any party to this Assignment, nor any other person, is intended to be a third party beneficiary of this Assignment.

 

		18.	Further Assurances and Corrective Instruments. To
the extent permitted by law, the parties will, from time to time, execute, acknowledge and deliver, or cause to be executed, acknowledged
and delivered, such supplements to this Assignment and such further instruments as may reasonably be required for carrying out
the intention of or facilitating the performance of this Assignment.

 

		19.	Counterparts. This Assignment may be executed
in multiple counterparts, each of which will constitute an original document and all of which together will constitute one agreement.

 

		20.	Indemnity. By executing this Assignment Borrower
agrees to indemnify and hold harmless Lender and its successors and assigns from and against any and all losses, claims, damages,
liabilities and expenses including Attorneys’ Fees and Costs, which may be imposed or incurred in connection with this Assignment.

 

		21.	Costs and Expenses. Wherever pursuant to this
Assignment it is provided that Borrower will pay any costs and expenses, such costs and expenses will include Lender’s Attorneys’
Fees and Costs.

 

		22.	Determinations by Lender. In any instance where
the consent or approval of Lender may be given or is required, or where any determination, judgment or decision is to be rendered
by Lender under this Assignment, the granting, withholding or denial of such consent or approval and the rendering of such determination,
judgment or decision will be made or exercised by Lender (or its designated representative) at its sole and exclusive option and
in its sole and absolute discretion and will be final and conclusive, except as may be otherwise expressly and specifically provided
in this Assignment.

 

		23.	Successors and Assigns. This Assignment will be
binding upon and inure to the benefit of Borrower, Lender and Property Manager and their respective successors and assigns forever.

 

    	Assignment of Management Agreement and
Subordination of Management Fees
	Page 5

     

    

 

		24.	Secondary Market.  Lender may sell, transfer
and deliver the Note and assign the Loan Agreement, the Security Instrument, this Assignment and the other Loan Documents to one
or more investors in the secondary mortgage market (“Investors”). In connection with such sale, Lender may
retain or assign responsibility for servicing the Loan, including the Note, the Loan Agreement, the Security Instrument, this
Assignment and the other Loan Documents, or may delegate some or all of such responsibility and/or obligations to a servicer including
any subservicer or master servicer, on behalf of the Investors. All references to Lender in this Assignment will refer to and
include any such servicer to the extent applicable.

 

IN WITNESS WHEREOF the
undersigned have executed this Assignment as of the date and year first written above.

 

    	Assignment of Management Agreement and
Subordination of Management Fees
	Page 6

     

    

 

	 	BORROWER:
	 	 
	 	BR CARROLL PHILLIPS CREEK RANCH, LLC, a Delaware limited liability company
	 	 	 
	 	By:	/s/ Jordan Ruddy
	 	 	Jordan Ruddy
	 	 	Authorized Signatory

 

    	Assignment of Management Agreement and
Subordination of Management Fees
	Page 7

     

    

 

	 	LENDER:
	 	 
	 	CBRE CAPITAL MARKETS, INC., a Texas corporation
	 	 	 
	 	By:	/s/ Marion S. Green
	 	 	Name: Marion S. Green
	 	 	Title: Vice President

 

    	Assignment of Management Agreement and
Subordination of Management Fees
	Page 8

     

    

 

	 	PROPERTY MANAGER:
	 	 
	 	CARROLL MANAGEMENT GROUP, LLC, a Georgia limited liability company
	 	 	 
	 	By:	/s/ M. Patrick Carroll
	 	 	Name: M. Patrick Carroll
	 	 	Title: Chief Executive Officer

 

    	Assignment of Management Agreement and
Subordination of Management Fees
	Page 9

     

    

 

EXHIBIT A

 

MANAGEMENT AGREEMENT

 

[Filed Separately]

 

    	Assignment of Management Agreement and
Subordination of Management Fees
	Page A-1Exhibit 10.274 

 

	Texas	 	 
	341018	PROMISSORY NOTE	 

 

	$28,880,000.00	Dated as of October 22, 2015

 

For value received, the undersigned, herein
called "Borrower," promises to pay to the order of THE NORTHWESTERN MUTUAL LIFE INSURANCE COMPANY, a Wisconsin corporation,
who, together with any subsequent holder of this note (hereinafter, the "Note"), is hereinafter referred to as "Lender",
at 720 E. Wisconsin Avenue, Milwaukee, WI, 53202 or at such other place as Lender shall designate in writing, in coin or currency
which, at the time or times of payment, is legal tender for public and private debts in the United States, the principal sum of
TWENTY-EIGHT MILLION EIGHT HUNDRED EIGHTY THOUSAND DOLLARS or so much thereof as shall have been advanced from time to time plus
interest on the outstanding principal balance at the rate and payable as follows:

 

Interest shall accrue on the unpaid
principal balance from the date of advance until maturity at the rate of three and forty-six hundredths percent (3.46%) per annum
(the "Interest Rate").

Accrued interest only on the amount
advanced shall be paid on the tenth day of the month following the date of advance and on the tenth day of each month thereafter
until November 10, 2017 (the "Initial Amortization Date"). On the Initial Amortization Date and on the tenth day of each
month thereafter until maturity, installments of principal and interest shall be paid in the amount of $129,041.00.

Interest will be calculated assuming
each month contains thirty (30) days and each calendar year contains three hundred sixty (360) days. In the event of a partial
month, however, interest for such partial month will be calculated based on the actual number of days the principal balance of
this Note is outstanding in the month and the actual number of days in the calendar year.

Payments shall be made directly
to Lender by electronic transfer of funds using the Automated Clearing House System. To effectuate these payments, Borrower, at
or prior to the date hereof, shall execute an ACH form provided by Lender. All installments shall be applied first in payment of
interest, calculated monthly on the unpaid principal balance, and the remainder of each installment shall be applied in payment
of principal. The entire unpaid principal balance plus accrued interest thereon shall be due and payable on November 10, 2022 (the
"Maturity Date").

 

    	 	1	 

     

    

 

Borrower shall have the right, upon not
less than ten (10) Business Days prior written notice to Lender, to prepay (on a Business Day only) this Note in full with a Prepayment
Fee (as hereinafter defined); provided, however, that such notice must contain the anticipated date of prepayment. If Borrower
fails to prepay on, or within five (5) Business Days before or after such anticipated date of prepayment, such failure shall be
deemed to be a withdrawal of Borrower's notice of prepayment, and Borrower shall be required to submit another written notice of
prepayment pursuant to the terms and conditions set forth in this Note if Borrower thereafter elects to prepay this Note. This
Prepayment Fee represents consideration to Lender for loss of yield and reinvestment costs and shall also be payable whenever prepayment
occurs as a result of the application of Condemnation Proceeds as defined in the Lien Instrument (as hereinafter defined). The
Prepayment Fee shall be the greater of Yield Maintenance or one percent (1%) of the outstanding principal balance of this Note
(the "Prepayment Fee"). The Prepayment Fee shall be calculated as of the Prepayment Fee Determination Date.

 

"Business Day" means any day other
than a Saturday, a Sunday or a day on which: (i) Lender is closed for business or (ii) the Federal Reserve Bank of New York is
closed for business.

 

"Yield Maintenance" means the
amount, if any, by which

 

(i)          the
present value on the Prepayment Fee Determination Date of the Then Remaining Payments determined by using the Periodic Discount
Rate; exceeds

 

(ii)         the
outstanding principal balance of this Note (exclusive of all accrued interest) on the Prepayment Fee Determination Date.

 

"Prepayment Fee Determination Date"
means

 

(A)         In
the case of a voluntary prepayment, the date of the voluntary prepayment;

(B)         In
the case of a prepayment following an acceleration of the Indebtedness (as hereinafter defined), the date of such acceleration;

(C)         In
the case of a prepayment due to a condemnation:

(1)          involving
the filing of a claim for the Prepayment Fee with the condemning authority or court of competent jurisdiction, the date of such
filing; or

 

(2)          not
involving the filing of a claim for the Prepayment Fee with the condemning authority or court of competent jurisdiction, the date
of such prepayment;

 

    	 	2	 

     

    

 

(D)         In
the case of Borrower becoming a debtor in a bankruptcy or other insolvency proceeding, the date of Lender's filing of its proof
of claim in such proceeding.

 

"Then Remaining Payments" means
payments under the Note in such amounts and at such times as would have been payable under the Note subsequent to the Prepayment
Fee Determination Date (assuming no prepayment) in accordance with the terms of this Note.

 

"Periodic Discount Rate" means
the rate which, when compounded monthly, equals the sum of the Applicable Percentage and the Treasury Rate.

 

"Applicable Percentage" means
0.50%.

 

"Treasury Rate" means:

 

(A)         The
linearly interpolated yield, compounded semi-annually, of the two (2) most recently auctioned (on the run) non-callable U.S. Treasury
bonds, notes or bills (other than inflation indexed (i.e., inflation protected) securities) issued by the United States Treasury
having maturity dates equivalent or most nearly equivalent to the Average Life Date as reported (on-line or otherwise) by The
Wall Street Journal one (1) Business Day prior to the Prepayment Fee Determination Date; or

 

(B)         If
the yields from (A) above are not available, the linearly interpolated yield, compounded semi-annually, of the two (2) Treasury
Constant Maturity Series (other than inflation indexed (i.e., inflation protected) securities) having constant maturity dates equivalent
or most nearly equivalent to the Average Life Date as reported, for the latest day for which such yields shall have been so reported,
as of one (1) Business Day preceding the Prepayment Fee Determination Date, in Federal Reserve Statistical Release H.15 (or comparable
successor publication); or

 

(C)         If
the yields from (A) and (B) above are not available, a rate comparable to what would have been calculated under clause (A) or (B)
above, as reasonably determined by Lender.

 

To the extent that the source used in (A), (B) or
(C) above updates treasury yield information during the day, Lender shall rely on the treasury yields reported prior to 12:00 Noon
(Central Time) one (1) Business Day prior to the Prepayment Fee Determination Date.

 

"Average Life Date" means the
date which is the Remaining Average Life from the Prepayment Fee Determination Date.

 

    	 	3	 

     

    

 

"Remaining Average Life" means
the number of years (calculated to the nearest day) obtained by dividing:

 

(A)         the
sum of the products obtained by multiplying

 

(1)          the
principal component of each Then Remaining Payment;

 

by

 

(2)          the
number of years (calculated to the nearest day) that will elapse between the Prepayment Fee Determination Date and the scheduled
due date of such Then Remaining Payment;

 

by

 

(B)         The
outstanding principal balance of this Note (exclusive of all accrued interest) on the Prepayment Fee Determination Date.

 

Upon the occurrence of an Event of Default
(as defined in the Lien Instrument) followed by the acceleration of the whole indebtedness evidenced by this Note, the payment
of such indebtedness will constitute an evasion of the prepayment terms hereunder and be deemed to be a voluntary prepayment hereof
and such payment will, therefore, to the extent not prohibited by law, include the Prepayment Fee required under the prepayment
in full right recited above.

 

In the event of a partial prepayment of
this Note for any reason contemplated in the Loan Documents (as defined in the Lien Instrument), the Prepayment Fee, if required,
shall be an amount equal to the Prepayment Fee if this Note were prepaid in full, multiplied by a fraction, the numerator of which
shall be the principal amount prepaid and the denominator of which shall be the outstanding principal balance of this Note immediately
preceding the Prepayment Fee Determination Date with respect to such partial prepayment.

 

Notwithstanding the above and provided no
Event of Default has occurred and is then continuing, this Note may be prepaid in full at any time, without a Prepayment Fee, during
the last ninety (90) days of the term of this Note.

 

The prepayment of this Note as herein provided,
together with the Prepayment Fee (if required as herein provided) if received by Lender prior to 2:00 p.m. Central Time on a Business
Day, shall be credited on that Business Day, or, if received by Lender at or after 2:00 p.m. Central Time on a Business Day, shall,
at Lender's option, be credited on the next Business Day.

 

Borrower acknowledges and agrees that the
Interest Rate hereunder shall be increased if certain financial statements and other reports are not furnished to Lender, all as
described in more detail in the provision of the Lien Instrument entitled "Financial Statements".

 

    	 	4	 

     

    

 

This Note is secured by certain property
(the "Property") in the City of Fort Worth, County of Tarrant, State of Texas described in a Deed of Trust and Security
Agreement (the "Lien Instrument") of even date herewith executed by BR CARROLL KELLER CROSSING, LLC to KEVIN L. WESTRA,
as Trustee for THE NORTHWESTERN MUTUAL LIFE INSURANCE COMPANY.

 

Upon the occurrence of an Event of Default
(as defined in the Lien Instrument), the whole unpaid principal hereof and accrued interest shall, at the option of Lender, to
be exercised at any time thereafter, become due and payable at once without notice, notice of the exercise of, and the intent to
exercise, such option being hereby expressly waived.

 

All parties at any time liable, whether
primarily or secondarily, for payment of indebtedness evidenced hereby, for themselves, their heirs, legal representatives, successors
and assigns, respectively, expressly waive presentment for payment, notice of dishonor, protest, notice of protest, and diligence
in collection; consent to the extension by Lender of the time of said payments or any part thereof; further consent that the real
or collateral security or any part thereof may be released by Lender, without in any way modifying, altering, releasing, affecting,
or limiting their respective liability or the lien of the Lien Instrument; and agree to pay reasonable attorneys' fees and expenses
of collection in case this Note is placed in the hands of an attorney for collection or suit is brought hereon and any attorneys'
fees and expenses incurred by Lender to enforce or preserve its rights under any of the Loan Documents in any bankruptcy or insolvency
proceeding.

 

All amounts due Lender including principal
and, to the extent permitted by applicable law, interest not paid when due (without regard to any notice and/or cure provisions
contained in any of the Loan Documents), including principal becoming due by reason of acceleration by Lender of the entire unpaid
balance of this Note, shall bear interest from the due date thereof until paid at the Default Rate. "Default Rate" means
the lower of a rate equal to the interest rate in effect at the time of the default as herein provided plus 5% per annum or the
maximum rate permitted by law.

 

    	 	5	 

     

    

 

If the maturity of this Note is accelerated
for any reason before the due date stated, or in the event of voluntary or other prepayment by the Borrower, including any prepayments
of interest or fees, or in any other event, earned interest may never include more than the maximum amount permitted by law, computed
from the date of each disbursement until payment, and any unearned interest otherwise payable hereunder which is in excess of the
maximum permitted by law shall be cancelled automatically as of the date of such acceleration or prepayment or other such event
and (if theretofore paid) shall at the option of Lender, unless otherwise required by applicable law, be either refunded to the
Borrower or credited on the principal of this Note provided that for purposes of computing interest under this Note, all sum or
sums paid or payable to Lender, in connection with the loan evidenced hereby, which constitute interest shall be taken into account
by amortizing, prorating, allocating and spreading such sum or sums, in equal parts, throughout the period of the full stated term
of the loan, to the extent permitted by law. Any interest computation under this Note shall be at not more than the maximum legal
rate, it being the intention of the parties hereto to conform strictly to all applicable laws of the State of Wisconsin or the
laws of the State adjudicated by a court of competent jurisdiction to be applicable and of the United States of America now or
hereafter in force (it being the intention of the parties hereto that the laws of the State of Wisconsin and of the United States
of America shall govern the maximum legal rate of interest permitted to be charged hereunder), and in the event it should be held
that interest (or any other sum or sums paid or payable to Lender in connection with the loan evidenced hereby deemed to constitute
interest) payable under this Note is in excess of the maximum permitted by such laws, the interest chargeable hereunder shall be
reduced to the maximum amount permitted by such laws.

 

Notwithstanding any provision contained
herein or in the Lien Instrument to the contrary, if Lender shall take action to enforce the collection of the indebtedness evidenced
hereby or secured by the Lien Instrument (collectively, the "Indebtedness"), its recourse shall, except as provided below,
be limited to the Property or the proceeds from the sale of the Property and the proceeds realized by Lender in exercising its
rights and remedies (i) under the Absolute Assignment (as defined in the Lien Instrument), (ii) under the Guarantee of Recourse
Obligations of even date herewith executed by Carroll Multifamily Real Estate Fund III, LP, a Delaware limited partnership, (the
"Carroll Principal") and Bluerock Residential Growth REIT, Inc., a Maryland corporation, (the "BR Principal")
(the Carroll Principal and the BR Principal are herein collectively referred to as the "Principals") for the benefit
of Lender to the extent any rights and remedies under said Guarantee of Recourse Obligations are applicable and under other separate
guarantees, if any, (iii) under any of the other Loan Documents (as defined in the Lien Instrument) and (iv) in any other collateral
securing the Indebtedness. If such proceeds are insufficient to pay the Indebtedness, Lender will never institute any action, suit,
claim or demand in law or in equity against Borrower for or on account of such deficiency; provided, however, that the provisions
contained in this paragraph

 

(i)           shall
not in any way affect or impair the validity or enforceability of the Indebtedness or the Lien Instrument; and

 

(ii)          shall
not prevent Lender from seeking and obtaining a judgment against Borrower, and Borrower shall be personally liable, for the Recourse
Obligations.

 

    	 	6	 

     

    

 

"Recourse Obligations" means

 

(a) rents and other income from the Property received
by Borrower, any Principal, or any authorized agent of Borrower from and after the date of any Non-Monetary Default (as defined
in the Lien Instrument) of which Borrower has received notice or any Monetary Default (as defined in the Lien Instrument) remaining
uncured prior to the Conveyance Date (as hereinafter defined), which rents and other income have not been applied to the payment
of principal and interest on this Note or to reasonable operating expenses of the Property (it being agreed by Lender that operating
expenses shall be reasonable if they were included in Borrower's original annual budget for the particular calendar year);

 

(b) amounts necessary to repair any damage to the
Property caused by the gross negligence or intentional misconduct of Borrower, any Principal, or any authorized agent of Borrower;

 

(c) insurance loss proceeds and Condemnation Proceeds
(as defined in the Lien Instrument) released to Borrower but not applied in accordance with the Loan Documents;

 

(d) the amount of insurance loss proceeds which would
have been available with respect to a casualty on the Property occurring prior to the Conveyance Date, but that were not available
due to the default by Borrower in carrying all insurance required by Lender under the Loan Documents;

 

(e) damages suffered by Lender as a result of fraud
or intentional misrepresentation in connection with the Indebtedness by Borrower, any Principal, or any authorized agent of Borrower;

 

(f) amounts in excess of any rents or other revenues
collected by Lender from operation of the Property from and after acceleration of the Indebtedness until the Conveyance Date, which
amounts are necessary to pay real estate taxes, special assessments and insurance premiums with respect to the Property, and amounts
required to fulfill Borrower's obligations as lessor under any leases of the Property, in each case, either paid by Lender and
not reimbursed prior to, or remaining due or delinquent on the Conveyance Date;

 

(g) all security deposits under leases of the Property
or any portion of the Property actually received by or credited to Borrower, any Principal, or any authorized agent of Borrower
or any predecessor of Borrower, and not refunded to the tenants under said leases in accordance with their respective leases or
delivered to Lender on or prior to the Conveyance Date, except to the extent any such security deposits were applied in accordance
with the terms and conditions of any of said leases prior to the occurrence of the Event of Default that gave rise to such conveyance
on the Conveyance Date, and all advance rents collected by Borrower, any Principal, any agent of Borrower or any predecessor of
Borrower, and not applied in accordance with the leases of the Property or delivered to Lender;

 

    	 	7	 

     

    

 

(h) all outstanding amounts due under the Indebtedness,
including principal, interest, and other charges if there shall be a violation of the provision of the Lien Instrument entitled
"Prohibition on Transfer/One-Time Transfer";

 

(i) any losses suffered by Lender as a result of the
Property not being in compliance with all applicable zoning and land use ordinances, covenants, statutes, and regulations; and;

 

(j) reasonable attorneys' fees and expenses incurred
by Lender to the extent suit is brought by Lender to collect any of the amounts described in subparagraphs (a) through (i) above.

 

"Conveyance Date" means the first
to occur of: (i) the later of (a) the date on which title vests in the purchaser at the foreclosure sale of the Property pursuant
to the Lien Instrument or (b) the date on which Borrower's statutory right of redemption shall expire or be waived, (ii) a Valid
Tender Date or (iii) the date of the conveyance of the Property to Lender in lieu of foreclosure.

 

Notwithstanding anything herein to the contrary,
Borrower shall not have any personal liability for Recourse Obligation (f) above if a Valid Tender is made within the Tender Period.

 

As used herein, "Tender Period" means the 60-day period
immediately following the earlier of (i) Borrower’s receipt of written notice that the Indebtedness has been accelerated
by Lender or (ii) the maturity date of the Note.

 

"Valid Tender Date" means the date on which a Tender
is made which, with the passage of time, becomes a Valid Tender.

 

"Tender" means the tender by Borrower of (i) true,
complete and accurate copies of all leases of the Property with an instrument assigning them to Lender or Lender's designee and
(ii) a special warranty or bargain and sale deed conveying good and marketable title to the Property to Lender or Lender's designee,
subject to no liens or encumbrances subordinate to the lien securing the Indebtedness not previously approved in writing by Lender.

 

"Valid Tender" means (i) a Tender and (ii) the passage
of the Review Period, during which period, Borrower shall not create any consensual liens on the Property and Borrower shall not
be or become a debtor in any bankruptcy proceeding or the subject of any other insolvency proceeding (other than a bankruptcy or
other insolvency proceeding commenced by Lender or any of its affiliates).

 

    	 	8	 

     

    

 

"Review Period" means the period of time from the
date of the Tender until the earlier of (i) sixty (60) days thereafter or (ii) the date of acceptance of the Tender by Lender or
Lender's designee.

 

Lender or Lender's designee shall have the Review Period to
accept or reject a Tender to enable Lender or Lender's designee to review title to, and obtain an environmental assessment of,
the Property, and, at Lender's or Lender's designee's option, the deed and lease assignment shall be deposited into an escrow during
the Review Period.

 

If Lender or Lender's designee shall not accept such Tender
within the Review Period, the Tender shall be deemed to be rejected, but a Valid Tender shall remain a Valid Tender despite such
rejection.

 

All notices, demands, requests and consents
permitted or required under this Note shall be given in the manner prescribed in the Lien Instrument.

 

Except as otherwise set forth herein, this
Note, the interpretation hereof and the rights, obligations, duties and liabilities hereunder shall be governed and controlled
by the laws of Texas.

 

	 	BR CARROLL KELLER CROSSING, LLC,
	 	a Delaware limited liability company
	 	 
	 	By: 	/s/ Jordan Ruddy
	 	Name: 	Jordan Ruddy
	 	Title:	Authorized Signatory

 

    	 	9

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