Document:

Exhibit 10.271

 

Freddie Mac Loan Number: 932411177

Property Name: Sorrel at Phillips Creek
Ranch

 

MULTIFAMILY NOTE

 

FLOATING RATE

 

(Revised 9-4-2015)

 

	US $38,684,000.00	Effective Date:  As of October 29, 2015

 

FOR VALUE RECEIVED, BR CARROLL PHILLIPS
CREEK RANCH, LLC, a Delaware limited liability company (together with such party’s or parties’ successors and
assigns, “Borrower”) jointly and severally (if more than one), promises to pay to the order of CBRE CAPITAL
MARKETS, INC., a Texas corporation, the principal sum of $38,684,000.00, with interest on the unpaid principal balance, as
hereinafter provided.

 

		1.	Defined Terms.

 

		(a)	As used in this Note:

 

“Amortization Period”
means a period of 360 full consecutive calendar months.

 

“Base Recourse”
means a portion of the Indebtedness equal to 0% of the original principal balance of this Note.

 

“Business Day”
means any day other than a Saturday, a Sunday, or any other day on which Lender or the national banking associations are not open
for business.

 

“Capped Interest Rate”
is not applicable, there is no Capped Interest Rate for the Loan.

 

“Default Rate”
means a variable annual interest rate equal to 4 percentage points above the Floating Interest Rate in effect from time to time.
However, at no time will the Default Rate exceed the Maximum Interest Rate.

 

“First Installment Due
Date” means December 1, 2015.

 

“First Principal and
Interest Installment Due Date” means December 1, 2019.

 

“Floating Interest Rate”
means the variable annual interest rate calculated for each Interest Adjustment Period so as to equal the Index Rate for such
Interest Adjustment Period (truncated at the 5th decimal place if necessary) plus the Margin. However, in no event
will the Floating Interest Rate exceed the Capped Interest Rate.

 

“Freddie Mac”
means the Federal Home Loan Mortgage Corporation.

 

“ICE” means ICE Benchmark Administration
Limited.

 

“Index Rate”
means, for any Interest Adjustment Period, the LIBOR Index Rate for such Interest Adjustment Period.

 

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“Installment Due Date”
means, for any monthly installment of interest-only or principal and interest, the date on which such monthly installment is due
and payable pursuant to Section 3 of this Note.

 

“Interest Adjustment
Period” means each successive one (1) calendar month period until the entire Indebtedness is paid in full, except that
the first Interest Adjustment Period is the period from the date of this Note through October 31, 2015. Therefore, the second
Interest Adjustment Period will be the period from November 1, 2015, through November 30, 2015, and so on until the entire Indebtedness
is paid in full.

 

“Lender” means
the holder from time to time of this Note.

 

“LIBOR” means
the London Interbank Offered Rate.

 

“LIBOR Index”
means ICE’s one (1) month LIBOR rate for United States Dollar deposits, as displayed on the LIBOR Index Page used to establish
the LIBOR Index Rate.

 

“LIBOR Index Rate”
means, for any Interest Adjustment Period after the first Interest Adjustment Period, ICE’s LIBOR rate for the LIBOR Index
released by ICE most recently preceding the first day of such Interest Adjustment Period, as such LIBOR rate is displayed on the
LIBOR Index Page. The LIBOR Index Rate for the first Interest Adjustment Period means ICE’s LIBOR rate for the LIBOR Index
released by ICE most recently preceding the first day of the month in which the first Interest Adjustment Period begins, as such
LIBOR rate is displayed on the LIBOR Index Page; provided, however, that if at any time the LIBOR Index Rate is less than zero,
the LIBOR Index Rate shall be deemed to be zero for all purposes of this Note and the Loan Agreement.

 

“LIBOR Index Page”
is the Bloomberg L.P., page “BBAM”, or such other page for the LIBOR Index as may replace page BBAM on that service,
or at the option of Lender (i) the applicable page for the LIBOR Index on another service which electronically transmits or displays
ICE LIBOR rates, or (ii) any publication of LIBOR rates available from ICE. In the event ICE ceases to set or publish a LIBOR
rate/interest settlement rate for the LIBOR Index, Lender will designate an alternative index, and such alternative index will
constitute the LIBOR Index Page.

 

“Loan” means
the loan evidenced by this Note.

 

“Loan Agreement”
means the Multifamily Loan and Security Agreement entered into by and between Borrower and Lender, effective as of the effective
date of this Note, as amended, modified, or supplemented from time to time.

 

“Lockout Period”
means the period from the date of this Note through the day preceding the 12th Installment Due Date under this Note.

 

“Margin” means
two and twenty-nine hundredths percentage points (229 basis points).

 

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“Maturity Date”
means the earlier of (i) May 1, 2023 (“Scheduled Maturity Date”) and (ii)
the date on which the unpaid principal balance of this Note becomes due and payable by acceleration or otherwise pursuant to the
Loan Documents or the exercise by Lender of any right or remedy under any Loan Document; provided, however, that if the unpaid
principal balance of this Note becomes due and payable by acceleration but such acceleration is rendered null and void and of
no further force and effect by operation of law or agreement by Lender, such acceleration will have no effect on the Maturity
Date. 

 

“Maximum Interest Rate”
means the rate of interest which results in the maximum amount of interest allowed by applicable law.

 

“Prepayment Premium Period”
means the period during which, if a prepayment of principal occurs, a prepayment premium will be payable by Borrower to Lender.
The Prepayment Premium Period is the period from and including the date of this Note until but not including the first day of
the Window Period.

 

“Program Plus® Seller/Servicer”
means an institution approved to sell multifamily mortgages to Freddie Mac as a Program Plus Seller/Servicer.

 

“Remaining Amortization
Period” means, at any point in time, the number of consecutive calendar months equal to the number of months in the
Amortization Period minus the number of scheduled monthly installments of principal and interest that have elapsed since the date
of this Note.

 

“Security Instrument”
means the multifamily mortgage, deed to secure debt or deed of trust effective as of the effective date of this Note, from Borrower
to or for the benefit of Lender and securing this Note, as amended, modified or supplemented from time to time.

 

“Window Period”
means the 3 consecutive calendar month period prior to the Scheduled Maturity Date.

 

		(b)	Other capitalized terms used but not defined in this
Note will have the meanings given to such terms in the Loan Agreement.

 

		2.	Address for Payment. All payments due under this
Note will be payable at CBRE Capital Markets, Inc., c/o GEMSA Loan Services, L.P., Post Office Box 973788, Dallas, Texas 75397-3788,
or such other place as may be designated by Notice to Borrower from or on behalf of Lender.

 

		3.	Payments.

 

		(a)	Interest will accrue on the outstanding principal balance
of this Note at the Floating Interest Rate, subject to the provisions of Section 8 of this Note.

 

		(b)	Interest under this Note will be computed, payable and
allocated on the basis of an actual/360 interest calculation schedule (interest is payable for the actual number of days in each
month, and each month’s interest is calculated by multiplying the unpaid principal amount of this Note as of the first day
of the month for which interest is being calculated by the applicable Floating Interest Rate, dividing the product by 360, and
multiplying the quotient by the number of days in the month for which interest is being calculated). For convenience in determining
the amount of a monthly installment of principal and interest under this Note, Lender will use a 30/360 interest calculation payment
schedule (each year is treated as consisting of twelve 30-day months). However, as provided above, the portion of the monthly
installment actually payable as and allocated to interest will be based upon an actual/360 interest calculation schedule, and
the amount of each installment attributable to principal and the amount attributable to interest will vary based upon the number
of days in the month for which such installment is paid. Each monthly payment of principal and interest will first be applied
to pay in full interest due, and the balance of the monthly payment paid by Borrower will be credited to principal.

 

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		(c)	Unless disbursement of principal is made by Lender to
Borrower on the first day of a calendar month, interest for the period beginning on the date of disbursement and ending on and
including the last day of such calendar month will be payable by Borrower simultaneously with the execution of this Note. If disbursement
of principal is made by Lender to Borrower on the first day of a calendar month, then no payment will be due from Borrower at
the time of the execution of this Note. The Installment Due Date for the first monthly installment payment under Section 3(d)
of interest-only or principal and interest, as applicable, will be the First Installment Due Date set forth in Section 1(a) of
this Note. Except as provided in this Section 3(c) and Section 10, accrued interest will be payable in arrears.

 

(d)          (i)          Beginning
on the First Installment Due Date, and continuing until and including the Installment Due Date immediately prior to the First
Principal and Interest Installment Due Date, accrued interest-only will be payable by Borrower in consecutive monthly installments
due and payable on the first day of each calendar month. The amount of the monthly installment of interest-only payable pursuant
to this Section 3(d)(i) on an Installment Due Date will equal the product of (A) annual interest on the unpaid principal balance
of this Note as of the first day of the Interest Adjustment Period immediately preceding the Installment Due Date at the Floating
Interest Rate in effect for such Interest Adjustment Period, divided by 360, multiplied by (B) the number of days in such Interest
Adjustment Period.

 

		(ii)	Beginning on the First Principal and Interest Installment
Due Date, and continuing until and including the monthly installment due on the Maturity Date, principal and accrued interest
will be payable by Borrower in consecutive monthly installments due and payable on the first day of each calendar month. The amount
of the monthly installment of principal and interest payable pursuant to this Section 3(d)(ii) on an Installment Due Date will
be calculated so as to equal the monthly payment amount which would be payable on the Installment Due Date as if the unpaid principal
balance of this Note as of the first day of the Interest Adjustment Period immediately preceding the Installment Due Date was
to be fully amortized, together with interest thereon at the Floating Interest Rate in effect for such Interest Adjustment Period,
in equal consecutive monthly payments paid on the first day of each calendar month over the Remaining Amortization Period.

 

		(e)	Reserved.

 

		(f)	Reserved.

 

		(g)	Reserved.

 

		(h)	All remaining Indebtedness, including all principal and
interest, will be due and payable by Borrower on the Maturity Date.

 

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		(i)	Lender will provide Borrower with Notice, given in the
manner specified in the Loan Agreement, of the amount of each monthly installment due under this Note. However, if Lender has
not provided Borrower with prior Notice of the monthly payment due on any Installment Due Date, then Borrower will pay on that
Installment Due Date an amount equal to the monthly installment payment for which Borrower last received Notice. If Lender at
any time determines that Borrower has paid one or more monthly installments in an incorrect amount because of the operation of
the preceding sentence, or because Lender has miscalculated the Floating Interest Rate or has otherwise miscalculated the amount
of any monthly installment, then Lender will give Notice to Borrower of such determination. If such determination discloses that
Borrower has paid less than the full amount due for the period for which the determination was made, Borrower, within 30 calendar
days after receipt of the Notice from Lender, will pay to Lender the full amount of the deficiency. If such determination discloses
that Borrower has paid more than the full amount due for the period for which the determination was made, then the amount of the
overpayment will be credited to the next installment(s) of interest only or principal and interest, as applicable, due under this
Note (or, if an Event of Default has occurred and is continuing, such overpayment will be credited against any amount owing by
Borrower to Lender).

 

		(j)	All payments under this Note must be made in immediately
available U.S. funds.

 

		(k)	Any regularly scheduled monthly installment of interest
only or principal and interest payable pursuant to this Section 3 that is received by Lender before the date it is due will
be deemed to have been received on the due date for the purpose of calculating interest due.

 

		(l)	Any accrued interest remaining past due for 30 days or
more, at Lender’s discretion, may be added to and become part of the unpaid principal balance of this Note and any reference
to “accrued interest” will refer to accrued interest which has not become part of the unpaid principal balance. Any
amount added to principal pursuant to the Loan Documents will bear interest at the applicable rate or rates specified in this
Note and will be payable with such interest upon demand by Lender and absent such demand, as provided in this Note for the payment
of principal and interest.

 

		(m)	In accordance with Section 16, interest charged under
this Note cannot exceed the Maximum Interest Rate. If the Floating Interest Rate at any time exceeds the Maximum Interest Rate,
resulting in the charging of interest hereunder to be limited to the Maximum Interest Rate, then any subsequent reduction in the
Floating Interest Rate will not reduce the rate at which interest under this Note accrues below the Maximum Interest Rate until
the total amount of interest accrued hereunder equals the amount of interest which would have accrued had the Floating Interest
Rate at all times been in effect.

 

		(n)	Reserved.

 

		4.	Application of Partial Payments. If at any time
Lender receives, from Borrower or otherwise, any amount applicable to the Indebtedness which is less than all amounts due and
payable at such time, Lender may apply the amount received to amounts then due and payable in any manner and in any order determined
by Lender, in Lender’s discretion. Borrower agrees that neither Lender’s acceptance of a payment from Borrower in
an amount that is less than all amounts then due and payable nor Lender’s application of such payment will constitute or
be deemed to constitute either a waiver of the unpaid amounts or an accord and satisfaction.

 

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		5.	Security. The Indebtedness is secured by, among
other things, the Security Instrument, and reference is made to the Security Instrument and the Loan Agreement for other rights
with respect to collateral for the Indebtedness.

 

		6.	Acceleration. If an Event of Default has occurred
and is continuing, the entire unpaid principal balance, any accrued interest, any prepayment premium payable under Section 10,
and all other amounts payable under this Note and any other Loan Document, will at once become due and payable, at the option
of Lender, without any prior Notice to Borrower (except if notice is required by applicable law, then after such notice). Lender
may exercise this option to accelerate regardless of any prior forbearance. For purposes of exercising such option, Lender will
calculate the prepayment premium as if prepayment occurred on the date of acceleration. If prepayment occurs thereafter, Lender
will recalculate the prepayment premium as of the actual prepayment date.

 

		7.	Late Charge.

 

		(a)	If any monthly installment of interest or principal and
interest or other amount payable under this Note or under the Loan Agreement or any other Loan Document is not received in full
by Lender within 10 days after the installment or other amount is due, counting from and including the date such installment or
other amount is due (unless applicable law requires a longer period of time before a late charge may be imposed, in which event
such longer period will be substituted), Borrower must pay to Lender, immediately and without demand by Lender, a late charge
equal to 5% of such installment or other amount due (unless applicable law requires a lesser amount be charged, in which event
such lesser amount will be substituted). If the Loan is not fully amortizing, the late charge will not be due on the final payment
of principal owed on the Maturity Date if such payment is not timely made.

 

		(b)	Borrower acknowledges that its failure to make timely
payments will cause Lender to incur additional expenses in servicing and processing the Loan and that it is extremely difficult
and impractical to determine those additional expenses. Borrower agrees that the late charge payable pursuant to this Section represents
a fair and reasonable estimate, taking into account all circumstances existing on the date of this Note, of the additional expenses
Lender will incur by reason of such late payment. The late charge is payable in addition to, and not in lieu of, any interest
payable at the Default Rate pursuant to Section 8.

 

		8.	Default Rate.

 

		(a)	So long as (i) any monthly installment under this
Note remains past due for 30 days or more or (ii) any other Event of Default has occurred and is continuing, then notwithstanding
anything in Section 3 of this Note to the contrary, interest under this Note will accrue on the unpaid principal balance from
the Installment Due Date of the first such unpaid monthly installment or the occurrence of such other Event of Default, as applicable,
at the Default Rate.

 

		(b)	From and after the Maturity Date, the unpaid principal
balance will continue to bear interest at the Default Rate until and including the date on which the entire principal balance
is paid in full.

 

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		(c)	Borrower acknowledges that (i) its failure to make
timely payments will cause Lender to incur additional expenses in servicing and processing the Loan, (ii) during the time
that any monthly installment under this Note is delinquent for 30 days or more, Lender will incur additional costs and expenses
arising from its loss of the use of the money due and from the adverse impact on Lender’s ability to meet its other obligations
and to take advantage of other investment opportunities, and (iii) it is extremely difficult and impractical to determine those
additional costs and expenses. Borrower also acknowledges that, during the time that any monthly installment under this Note is
delinquent for 30 days or more or any other Event of Default has occurred and is continuing, Lender’s risk of nonpayment
of this Note will be materially increased and Lender is entitled to be compensated for such increased risk. Borrower agrees that
the increase in the rate of interest payable under this Note to the Default Rate represents a fair and reasonable estimate, taking
into account all circumstances existing on the date of this Note, of the additional costs and expenses Lender will incur by reason
of the Borrower’s delinquent payment and the additional compensation Lender is entitled to receive for the increased risks
of nonpayment associated with a delinquent loan.

 

		9.	Limits on Personal Liability.

 

		(a)	Except as otherwise provided in this Section 9,
Borrower will have no personal liability under this Note, the Loan Agreement or any other Loan Document for the repayment of the
Indebtedness or for the performance of or compliance with any other obligations of Borrower under the Loan Documents and Lender’s
only recourse for the satisfaction of the Indebtedness and the performance of such obligations will be Lender’s exercise
of its rights and remedies with respect to the Mortgaged Property and to any other collateral held by Lender as security for the
Indebtedness. This limitation on Borrower’s liability will not limit or impair Lender’s enforcement of its rights
against any Guarantor of the Indebtedness or any Guarantor of any other obligations of Borrower.

 

		(b)	Borrower will be personally liable to Lender for the
amount of the Base Recourse, plus any other amounts for which Borrower has personal liability under this Section 9.

 

		(c)	In addition to the Base Recourse, Borrower will be personally
liable to Lender for the repayment of a further portion of the Indebtedness equal to any loss or damage suffered by Lender as
a result of the occurrence of any of the following events:

 

		(i)	Borrower fails to pay to Lender upon demand after an
Event of Default all Rents to which Lender is entitled under Section 3 of the Security Instrument and the amount of all security
deposits collected by Borrower from tenants then in residence. However, Borrower will not be personally liable for any failure
described in this Section 9(c)(i) if Borrower is unable to pay to Lender all Rents and security deposits as required by the Security
Instrument because of a valid order issued in a bankruptcy, receivership, or similar judicial proceeding.

 

		(ii)	Borrower fails to apply all Insurance proceeds and Condemnation
proceeds as required by the Loan Agreement. However, Borrower will not be personally liable for any failure described in this
Section 9(c)(ii) if Borrower is unable to apply Insurance or Condemnation proceeds as required by the Loan Agreement because of
a valid order issued in a bankruptcy, receivership, or similar judicial proceeding.

 

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		(iii)	Either of the following occurs:

 

		(A)	Borrower fails to deliver the statements, schedules and
reports required by Section 6.07 of the Loan Agreement and Lender exercises its right to audit those statements, schedules and
reports.

 

		(B)	If an Event of Default has occurred and is continuing,
Borrower fails to deliver all books and records relating to the Mortgaged Property or its operation in accordance with the provisions
of Section 6.07 of the Loan Agreement.

 

		(iv)	Borrower fails to pay when due in accordance with the
terms of the Loan Agreement the amount of any item below marked “Deferred”; provided however, that if no item
is marked “Deferred”, this Section 9(c)(iv) will be of no force or effect.

 

	 	[Deferred]	Property Insurance premiums or other Insurance premiums
	 	[Collect]	Taxes or payments in lieu of taxes (PILOT)
	 	[Deferred]	water and sewer charges (that could become a lien on the Mortgaged Property)
	 	[N/A]	Ground Rents
	 	[Deferred]	assessments or other charges (that could become a lien on the Mortgaged Property), including home owner association dues

 

		(v)	Borrower engages in any willful act of material waste
of the Mortgaged Property.

 

		(vi)	Borrower fails to comply with any provision of Section 6.13(a)(iii)
through (xxvi) of the Loan Agreement or any SPE Equity Owner fails to comply with any provision of Section 6.13(b)(iii) through
(v) of the Loan Agreement (subject to possible full recourse liability as set forth in Section 9(f)(ii)).

 

		(vii)	Any of the following Transfers occurs:

 

		(A)	Any Person that is not an Affiliate creates a mechanic’s
lien or other involuntary lien or encumbrance against the Mortgaged Property and Borrower has not complied with the provisions
of the Loan Agreement.

 

		(B)	A Transfer of property by devise, descent or operation
of law occurs upon the death of a natural person and such Transfer does not meet the requirements set forth in the Loan Agreement.

 

		(C)	Borrower grants an easement that does not meet the requirements
set forth in the Loan Agreement.

 

		(D)	Borrower executes a Lease that does not meet the requirements
set forth in the Loan Agreement.

 

		(viii)	Reserved.

 

		(ix)	through (xviii) are Reserved.

 

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		(xix)	Borrower fails to complete any Property Improvement Alterations
that have been commenced in accordance with Section 6.09(e)(v) of the Loan Agreement.

 

		(d)	In addition to the Base Recourse, Borrower will be personally
liable to Lender for all of the following:

 

		(i)	Borrower will be personally liable for the performance
of all of Borrower’s obligations under Sections 6.12 and 10.02(b) of the Loan Agreement (relating to environmental
matters).

 

		(ii)	Borrower will be personally liable for the costs of any
audit under Section 6.07 of the Loan Agreement.

 

		(iii)	Borrower will be personally liable for any costs and
expenses incurred by Lender in connection with the collection of any amount for which Borrower is personally liable under this
Section 9, including Attorneys’ Fees and Costs and the costs of conducting any independent audit of Borrower’s
books and records to determine the amount for which Borrower has personal liability.

 

		(iv)	through (viii) are Reserved.

 

		(ix)	Borrower will be personally liable for any fees, costs,
or expenses incurred by Lender in connection with Borrower’s termination of any agreement for the provision of services
to or in connection with the Mortgaged Property, including cable, internet, garbage collection, landscaping, security, and cleaning.

 

		(e)	All payments made by Borrower with respect to the Indebtedness
and all amounts received by Lender from the enforcement of its rights under the Loan Agreement and the other Loan Documents will
be applied first to the portion of the Indebtedness for which Borrower has no personal liability.

 

		(f)	Notwithstanding the Base Recourse, Borrower will become
personally liable to Lender for the repayment of all of the Indebtedness upon the occurrence of any of the following Events of
Default:

 

		(i)	Borrower fails to comply with Section 6.13(a)(i)
or (ii) of the Loan Agreement or any SPE Equity Owner fails to comply with Section 6.13(b)(i) or (ii) of the Loan Agreement.

 

		(ii)	Borrower fails to comply with any provision of Section 6.13(a)(iii)
through (xxvi) of the Loan Agreement or any SPE Equity Owner fails to comply with any provision of Section 6.13(b)(iii) through
(v) of the Loan Agreement and a court of competent jurisdiction holds or determines that such failure or combination of failures
is the basis, in whole or in part, for the substantive consolidation of the assets and liabilities of Borrower or any SPE Equity
Owner with the assets and liabilities of a debtor pursuant to Title 11 of the Bankruptcy Code.

 

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		(iii)	A Transfer that is an Event of Default under Section 7.02
of the Loan Agreement occurs other than a Transfer set forth in Section 9(c)(vii) above (for which Borrower will have personal
liability for Lender’s loss or damage); provided, however, that Borrower will not have any personal liability for a Transfer
consisting solely of the involuntary removal or involuntary withdrawal of a general partner in a limited partnership or a manager
in a limited liability company.

 

		(iv)	There was fraud or written material misrepresentation
by Borrower or any officer, director, partner, member, or employee of Borrower in connection with the application for or creation
of the Indebtedness or there is fraud in connection with any request for any action or consent by Lender.

 

		(v)	Borrower or any SPE Equity Owner voluntarily files for
bankruptcy protection under the Bankruptcy Code.

 

		(vi)	Borrower or any SPE Equity Owner voluntarily becomes
subject to any reorganization, receivership, insolvency proceeding, or other similar proceeding pursuant to any other federal
or state law affecting debtor and creditor rights.

 

		(vii)	The Mortgaged Property or any part of the Mortgaged Property
becomes an asset in a voluntary bankruptcy or becomes subject to any voluntary reorganization, receivership, insolvency proceeding,
or other similar voluntary proceeding pursuant to any other federal or state law affecting debtor and creditor rights.

 

		(viii)	An order of relief is entered against Borrower or any
SPE Equity Owner pursuant to the Bankruptcy Code or other federal or state law affecting debtor and creditor rights in any involuntary
bankruptcy proceeding initiated or joined in by a Related Party.

 

		(ix)	An involuntary bankruptcy or other involuntary insolvency
proceeding is commenced against Borrower or any SPE Equity Owner (by a party other than Lender) but only if Borrower or such SPE
Equity Owner has failed to use commercially reasonable efforts to dismiss such proceeding or has consented to such proceeding.
“Commercially reasonable efforts” will not require any direct or indirect interest holders in Borrower or any SPE
Equity Owner to contribute or cause the contribution of additional capital to Borrower or any SPE Equity Owner.

 

		(x)	through (xii) are reserved.

 

		(g)	For purposes of Sections 9(f) and (h), the term “Related
Party” will include all of the following:

 

		(i)	Borrower, any Guarantor, or any SPE Equity Owner.

 

		(ii)	Any Person that holds, directly or indirectly, any ownership
interest (including any shareholder, member or partner) in Borrower, any Guarantor, or any SPE Equity Owner or any Person that
has a right to manage Borrower, any Guarantor, or any SPE Equity Owner.

 

		(iii)	Any Person in which Borrower, any Guarantor, or any SPE
Equity Owner has any ownership interest (direct or indirect) or right to manage.

 

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		(iv)	Any Person in which any partner, shareholder, or member
of Borrower, any Guarantor, or any SPE Equity Owner has an ownership interest or right to manage.

 

		(v)	Any Person in which any Person holding an interest in
Borrower, any Guarantor, or any SPE Equity Owner also has any ownership interest.

 

		(vi)	Any creditor (as defined in the Bankruptcy Code) of Borrower
that is related by blood, marriage or adoption to Borrower, any Guarantor, or any SPE Equity Owner.

 

		(vii)	Any creditor (as defined in the Bankruptcy Code) of Borrower
that is related to any partner, shareholder or member of, or any other Person holding an interest in, Borrower, any Guarantor,
or any SPE Equity Owner.

 

		(h)	If Borrower, any Guarantor, any SPE Equity Owner, or
any Related Party has solicited creditors to initiate or participate in any proceeding referred to in Section 9(f), regardless
of whether any of the creditors solicited actually initiates or participates in the proceeding, then such proceeding will be considered
as having been initiated by a Related Party.

 

		(i)	To the extent that Borrower has personal liability under
this Section 9, Lender may, to the fullest extent permitted by applicable law, exercise its rights against Borrower personally
without regard to whether Lender has exercised any rights against the Mortgaged Property or any other security, or pursued any
rights against any Guarantor, or pursued any other rights available to Lender under this Note, the Loan Agreement, any other Loan
Document, or applicable law. To the fullest extent permitted by applicable law, in any action to enforce Borrower’s personal
liability under this Section 9, Borrower waives any right to set off the value of the Mortgaged Property against such personal
liability.

 

		10.	Voluntary and Involuntary Prepayments.

 

		(a)	Any receipt by Lender of principal due under this Note
prior to the Maturity Date, other than principal required to be paid in monthly installments pursuant to Section 3, constitutes
a prepayment of principal under this Note. Without limiting the foregoing, any application by Lender, prior to the Maturity Date,
of any proceeds of collateral or other security to the repayment of any portion of the unpaid principal balance of this Note constitutes
a prepayment under this Note.

 

		(b)	Borrower may not voluntarily prepay any portion of the
principal balance of this Note during the Lockout Period, if a Lockout Period is applicable to this Note. However, if any portion
of the principal balance of this Note is prepaid during the Lockout Period by reason of the application by Lender of any proceeds
of collateral or other security to any portion of the unpaid principal balance of this Note or following a determination that
the prohibition on voluntary prepayments during the Lockout Period is in contravention of applicable law, then Borrower must also
pay to Lender upon demand by Lender, a prepayment premium equal to 5% of the amount of principal being prepaid.

 

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	 	Page 11

     

    

 

		(c)	Following the end of the Lockout Period, Borrower may
voluntarily prepay all of the unpaid principal balance of this Note on an Installment Due Date so long as Borrower designates
the date for such prepayment in a Notice from Borrower to Lender given at least 30 days prior to the date of such prepayment.
If an Installment Due Date (as defined in Section 1(a)) falls on a day which is not a Business Day, then with respect
to payments made under this Section 10 only, the term “Installment Due Date” will mean the Business Day immediately
preceding the scheduled Installment Due Date.

 

		(d)	Notwithstanding Section 10(c), Borrower may voluntarily
prepay all of the unpaid principal balance of this Note on a Business Day other than an Installment Due Date if Borrower provides
Lender with the Notice set forth in Section 10(c) and meets the other requirements set forth in this Section 10(d). Borrower acknowledges
that Lender has agreed that Borrower may prepay principal on a Business Day other than an Installment Due Date only because Lender
will deem any prepayment received by Lender on any day other than an Installment Due Date to have been received on the Installment
Due Date immediately following such prepayment and Borrower must pay to Lender all interest that would have been due if the prepayment
had actually been made on the Installment Due Date immediately following such prepayment.

 

		(e)	Unless otherwise expressly provided in the Loan Documents,
Borrower may not voluntarily prepay less than all of the unpaid principal balance of this Note. In order to voluntarily prepay
all or any part of the principal of this Note, Borrower must also pay to Lender, together with the amount of principal being prepaid,
(i) all accrued and unpaid interest due under this Note, plus (ii) all other sums due to Lender at the time of such prepayment,
plus (iii) any prepayment premium calculated pursuant to Section 10(f).

 

		(f)	Except as provided in Section 10(g), a prepayment premium
will be due and payable by Borrower in connection with any prepayment of principal under this Note during the Prepayment Premium
Period. The prepayment premium will be 1.0% of the amount of principal being prepaid for any prepayments occurring during the
Prepayment Premium Period but after the Lockout Period (if applicable).

 

		(g)	Notwithstanding any other provision of this Section 10,
no prepayment premium will be payable with respect to any of the following:

 

		(i)	Any prepayment made during the Window Period.

 

		(ii)	Any prepayment occurring as a result of the application
of any Insurance proceeds or Condemnation award.

 

		(iii)	Any prepayment required under the terms of the Loan Agreement
in connection with a Condemnation proceeding.

 

		(iv)	Any
                                         prepayment of the entire principal balance of this Note that occurs on or after the 12th
                                         Installment Due Date under this Note with the proceeds of a fixed interest rate mortgage
                                         loan that is the subject of a binding commitment for purchase between Freddie Mac and
                                         a Freddie Mac-approved Program Plusâ
                                         Seller/Servicer. 

 

		(h)	Unless Lender agrees otherwise in writing, a permitted
or required prepayment of less than the unpaid principal balance of this Note will not extend or postpone the due date of any
subsequent monthly installments or change the amount of such installments.

 

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	 	Page 12

     

    

 

		(i)	Borrower recognizes that any prepayment of any of the
unpaid principal balance of this Note, whether voluntary or involuntary or resulting from an Event of Default by Borrower, will
result in Lender’s incurring loss, including reinvestment loss, additional expense and frustration or impairment of Lender’s
ability to meet its commitments to third parties. Borrower agrees to pay to Lender upon demand damages for the detriment caused
by any prepayment, and agrees that it is extremely difficult and impractical to ascertain the extent of such damages. Borrower
therefore acknowledges and agrees that the formula for calculating prepayment premiums set forth in this Note represents a reasonable
estimate of the damages Lender will incur because of a prepayment. Borrower further acknowledges that any lockout and prepayment
premium provisions of this Note are a material part of the consideration for the Loan, and that the terms of this Note are in
other respects more favorable to Borrower as a result of the Borrower’s voluntary agreement to the lockout and prepayment
premium provisions.

 

		11.	Reserved.

 

		12.	Reserved.

 

		13.	Costs and Expenses. To the fullest extent allowed
by applicable law, Borrower must pay all expenses and costs, including Attorneys’ Fees and Costs incurred by Lender as a
result of any default under this Note or in connection with efforts to collect any amount due under this Note, or to enforce the
provisions of any of the other Loan Documents, including those incurred in post-judgment collection efforts and in any bankruptcy
proceeding (including any action for relief from the automatic stay of any bankruptcy proceeding) or judicial or non-judicial
foreclosure proceeding. Borrower acknowledges and agrees that, in connection with each request by Borrower under this Note or
any Loan Document, Borrower must pay all reasonable Attorneys’ Fees and Costs and expenses incurred by Lender, including
any fees charged by the Rating Agencies (if applicable), regardless of whether the matter is approved, denied or withdrawn.

 

		14.	Forbearance. Any forbearance by Lender in exercising
any right or remedy under this Note, the Loan Agreement, or any other Loan Document, or otherwise afforded by applicable law,
will not be a waiver of or preclude the exercise of that or any other right or remedy. The acceptance by Lender of any payment
after the due date of such payment, or in an amount which is less than the required payment, will not be a waiver of Lender’s
right to require prompt payment when due of all other payments or to exercise any right or remedy with respect to any failure
to make prompt payment. Enforcement by Lender of any security for Borrower’s obligations under this Note will not constitute
an election by Lender of remedies so as to preclude the exercise of any other right or remedy available to Lender.

 

		15.	Waivers. Borrower and all endorsers and Guarantors
of this Note and all other third party obligors waive presentment, demand, notice of dishonor, protest, notice of acceleration,
notice of intent to demand or accelerate payment or maturity, presentment for payment, notice of nonpayment, grace, and diligence
in collecting the Indebtedness.

 

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	 	Page 13

     

    

 

		16.	Loan Charges (Texas Only). Borrower and Lender
intend at all times to comply with the law of the State of Texas governing the Maximum Interest Rate or the maximum amount of
interest payable on or in connection with this Note and the Indebtedness (or applicable United States federal law to the extent
that it permits Lender to contract for, charge, take, reserve, or receive a greater amount of interest than under Texas law).
If the applicable law is ever judicially interpreted so as to render usurious any amount payable under this Note or under any
other Loan Document, or contracted for, charged, taken, reserved, or received with respect to the Indebtedness, or as a result
of acceleration of the maturity of this Note, or if any prepayment by Borrower results in Borrower having paid any interest in
excess of that permitted by any applicable law, then Borrower and Lender expressly intend that all excess amounts collected by
Lender will be applied to reduce the unpaid principal balance of this Note (or, if this Note has been or would thereby be paid
in full, will be refunded to Borrower), and the provisions of this Note, the Loan Agreement and any other Loan Documents immediately
will be deemed reformed and the amounts thereafter collectible under this Note or any other Loan Document reduced, without the
necessity of the execution of any new documents, so as to comply with any applicable law, but so as to permit the recovery of
the fullest amount otherwise payable under this Note or any other Loan Document. The right to accelerate the Maturity Date of
this Note does not include the right to accelerate any interest, which has not otherwise accrued on the date of such acceleration,
and Lender does not intend to collect any unearned interest in the event of acceleration. All sums paid or agreed to be paid to
Lender for the use, forbearance, or detention of the Indebtedness will, to the extent permitted by any applicable law, be amortized,
prorated, allocated and spread throughout the full term of the Indebtedness until payment in full so that the rate or amount of
interest on account of the Indebtedness does not exceed the applicable usury ceiling. Notwithstanding any provision contained
in this Note, the Loan Agreement or any other Loan Document that permits the compounding of interest, including any provision
by which any accrued interest is added to the principal amount of this Note, the total amount of interest that Borrower is obligated
to pay and Lender is entitled to receive with respect to the Indebtedness will not exceed the amount calculated on a simple (i.e.,
non-compounded) interest basis at the maximum rate on principal amounts actually advanced to or for the account of Borrower, including
all current and prior advances and any advances made pursuant to the Loan Agreement or other Loan Documents (such as for the payment
of Taxes, Insurance premiums and similar expenses or costs).

 

		17.	Commercial Purpose. Borrower represents that Borrower
is incurring the Indebtedness solely for the purpose of carrying on a business or commercial enterprise, and not for personal,
family, household, or agricultural purposes.

 

		18.	Counting of Days. Any reference in this Note to
a period of “days” means calendar days, not Business Days, except where otherwise specifically provided.

 

		19.	Governing Law. This Note will be governed by the
law of the Property Jurisdiction.

 

		20.	Captions. The captions of the Sections of
this Note are for convenience only and will be disregarded in construing this Note.

 

		21.	Notices; Written Modifications.

 

		(a)	All Notices, demands, and other communications required
or permitted to be given pursuant to this Note will be given in accordance with Section 11.03 of the Loan Agreement.

 

		(b)	Any modification or amendment to this Note will be ineffective
unless in writing and signed by the party sought to be charged with such modification or amendment; provided, however, in the
event of a Transfer under the terms of the Loan Agreement that requires Lender’s consent, any or some or all of the Modifications
to Multifamily Note set forth in Exhibit A to this Note may be modified or rendered void by Lender at Lender’s
option, by Notice to Borrower and the transferee, as a condition of Lender’s consent.

 

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	 	Page 14

     

    

 

		22.	Consent to Jurisdiction and Venue. Borrower agrees
that any controversy arising under or in relation to this Note 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 will
arise under or in relation to this Note. Borrower irrevocably consents to service, jurisdiction, and venue of such courts for
any such litigation and waives any other venue to which it might be entitled by virtue of domicile, habitual residence, or otherwise.
However, nothing in this Note is intended to limit any right that Lender may have to bring any suit, action, or proceeding relating
to matters arising under this Note in any court of any other jurisdiction.

 

		23.	WAIVER OF TRIAL BY JURY. BORROWER AND LENDER
EACH (a) AGREES NOT TO ELECT A TRIAL BY JURY WITH RESPECT TO ANY ISSUE ARISING OUT OF THIS NOTE OR THE RELATIONSHIP BETWEEN
THE PARTIES AS LENDER AND BORROWER THAT IS TRIABLE OF RIGHT BY A JURY AND (b) WAIVES ANY RIGHT TO TRIAL BY JURY WITH RESPECT
TO SUCH ISSUE TO THE EXTENT THAT ANY SUCH RIGHT EXISTS NOW OR IN THE FUTURE. THIS WAIVER OF RIGHT TO TRIAL BY JURY IS SEPARATELY
GIVEN BY EACH PARTY, KNOWINGLY AND VOLUNTARILY WITH THE BENEFIT OF COMPETENT LEGAL COUNSEL.

 

		24.	State-Specific Provisions. N/A.

 

		25.	Attached Riders. The following Riders are attached
to this Note: NONE.

 

		26.	Attached Exhibit. The
following Exhibit, if marked with an “X” in the space provided, is attached to this Note:

 

	 	x	Exhibit A	Modifications to Multifamily Note

 

IN WITNESS WHEREOF, and in consideration
of the Lender’s agreement to lend Borrower the principal amount set forth above, Borrower has signed and delivered this
Note under seal or has caused this Note to be signed and delivered under seal by its duly authorized representative.

 

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	 	Page 15

     

    

 

	 	BR CARROLL PHILLIPS CREEK RANCH, LLC,

 a Delaware limited
    liability company
	 	 	 
	 	By:	/s/ Jordan Ruddy
	 	 	Jordan Ruddy
	 	 	Authorized Signatory

 

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 Floating Rate
	 	Page 16

     

    

 

	PAY TO THE ORDER OF	 	 
	 	,	 
	WITHOUT RECOURSE.	 	 
	 	 	 
	CBRE CAPITAL MARKETS, INC., a Texas corporation	 	 

 

	By:	/s/ Marion S. Green	 
	 	Name: Marion S. Green	 
	 	Title: Vice President	 

 

Freddie Mac Loan No. 932411177

 

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	 	Page 17

     

    

 

EXHIBIT
A

 

MODIFICATIONS TO MULTIFAMILY NOTE

 

The following modifications are made to the text of the Note
that precedes this Exhibit.

 

		1.	The definition of “Lockout Period” in Section
1(a) is deleted and replaced with the following:

 

“Lockout Period”
means the period from the date of this Note through the day preceding the 18th 12th Installment
Due Date under this Note.

 

		2.	Section 10(g)(iv) is deleted and replaced with the following:

 

		(iv)	Any prepayment of the entire principal balance of this
Note that occurs on or after the 18th 12th Installment Due Date under this Note with the proceeds
of a fixed interest rate mortgage loan that is the subject of a binding commitment for purchase between Freddie Mac and a Freddie
Mac-approved Program Plusâ Seller/Servicer.

 

		3.	Section 9(a) is revised to read as follows:

 

		(a)	Except as otherwise provided in this Section 9,
neither Borrower nor any of its direct or indirect owners (with the exception of any Guarantor pursuant to
any Guaranty of even date herewith, if any) will have no any personal liability under this
Note, the Loan Agreement or any other Loan Document for the repayment of the Indebtedness or for the performance of or compliance
with any other obligations of Borrower under the Loan Documents and Lender’s only recourse for the satisfaction of the Indebtedness
and the performance of such obligations will be Lender’s exercise of its rights and remedies with respect to the Mortgaged
Property and to any other collateral held by Lender as security for the Indebtedness. This limitation on Borrower’s liability
will not limit or impair Lender’s enforcement of its rights against any Guarantor of the Indebtedness or any Guarantor of
any other obligations of Borrower.

 

    	Multifamily Note
 Floating Rate
	 	Page A-1Exhibit 10.272

 

After recording

return to:

 

Erin O’Neil Ashby, Esquire

Troutman Sanders LLP

P.O. Box 1122

Richmond, VA 23218

 

MULTIFAMILY DEED OF TRUST,

ASSIGNMENT OF RENTS,

SECURITY AGREEMENT AND FIXTURE FILING

 

TEXAS

 

(Revised 7-17-2014)

 

     

     

    

 

Freddie Mac Loan No. 932411177

Sorrel at Phillips Creek Ranch

 

MULTIFAMILY DEED OF TRUST,

ASSIGNMENT OF RENTS,

SECURITY AGREEMENT AND FIXTURE FILING

 

TEXAS

 

(Revised 7-17-2014)

 

THIS MULTIFAMILY DEED OF TRUST, ASSIGNMENT
OF RENTS, SECURITY AGREEMENT AND FIXTURE FILING (“Instrument”) is made to be effective as of this 29th day of
October, 2015, by BR CARROLL PHILLIPS CREEK RANCH, LLC, a limited liability company organized and existing under the laws
of Delaware, whose address is c/o Carroll Organization, LLC, 3340 Peachtree Road, Suite 1620, Atlanta, Georgia 30326, as trustor
(“Borrower”), to REBECCA S. CONRAD, as trustee (“Trustee”), for the benefit of CBRE
CAPITAL MARKETS, INC., a corporation organized and existing under the laws of Texas, whose address is c/o GEMSA Loan Services,
L.P., 929 Gessner Road, Suite 1700, Houston, Texas 77024, as beneficiary (“Lender”). Borrower’s organizational
identification number, if applicable, is 5830756.

 

RECITAL

 

Borrower, in consideration of the Indebtedness
and the trust created by this Instrument, irrevocably grants, conveys and assigns to Trustee, in trust, with power of sale, the
Mortgaged Property, including the Land located in Denton County, State of Texas and described in Exhibit A attached to this
Instrument, to have and to hold the Mortgaged Property unto Trustee, Trustee’s successor in trust and Trustee’s assigns
forever.

 

AGREEMENT

 

TO SECURE TO LENDER the repayment of the
Indebtedness evidenced by Borrower’s Multifamily Note payable to Lender, dated as of the date of this Instrument, and maturing
on May 1, 2023 (“Maturity Date”), in the principal amount of $38,684,000.00, and all renewals, extensions and
modifications of the Indebtedness, and the performance of the covenants and agreements of Borrower contained in the Loan Agreement
or any other Loan Document.

 

Borrower warrants and represents that Borrower
is lawfully seized of the Mortgaged Property and has the right, power and authority to grant, convey and assign the Mortgaged Property,
and that the Mortgaged Property is unencumbered, except as shown on the schedule of exceptions to coverage in the title policy
issued to and accepted by Lender contemporaneously with the execution and recordation of this Instrument and insuring Lender’s
interest in the Mortgaged Property (“Schedule of Title Exceptions”). Borrower covenants that Borrower will warrant
and defend generally the title to the Mortgaged Property against all claims and demands, subject to any easements and restrictions
listed in the Schedule of Title Exceptions.

 

    	Texas
Multifamily Deed of Trust, Assignment of Rents,
Security Agreement and Fixture Filing
	Page 1

     

    

 

UNIFORM COVENANTS

 

(Revised 7-17-2014)

 

Covenants. In consideration of the
mutual promises set forth in this Instrument, Borrower and Lender covenant and agree as follows:

 

		1.	Definitions. The following terms, when used in this Instrument (including when used in the
above recitals), will have the following meanings and any capitalized term not specifically defined in this Instrument will have
the meaning ascribed to that term in the Loan Agreement:

 

“Attorneys’ Fees
and Costs” means (a) fees and out-of-pocket costs of Lender’s and Loan Servicer’s attorneys, as applicable,
including costs of Lender’s and Loan Servicer’s in-house counsel, support staff costs, costs of preparing for litigation,
computerized research, telephone and facsimile transmission expenses, mileage, deposition costs, postage, duplicating, process
service, videotaping and similar costs and expenses; (b) costs and fees of expert witnesses, including appraisers; (c) investigatory
fees; and (d) the costs for any opinion required by Lender pursuant to the terms of the Loan Documents.

 

“Borrower”
means all Persons identified as “Borrower” in the first paragraph of this Instrument, together with their successors
and assigns.

 

“Business Day”
means any day other than a Saturday, a Sunday or any other day on which Lender or the national banking associations are not
open for business.

 

“Event of Default”
means the occurrence of any event described in Section 8.

 

“Fixtures”
means all property owned by Borrower which is attached to the Land or the Improvements so as to constitute a fixture under applicable
law, including: machinery, equipment, engines, boilers, incinerators and installed building materials; systems and equipment for
the purpose of supplying or distributing heating, cooling, electricity, gas, water, air or light; antennas, cable, wiring and conduits
used in connection with radio, television, security, fire prevention or fire detection or otherwise used to carry electronic signals;
telephone systems and equipment; elevators and related machinery and equipment; fire detection, prevention and extinguishing systems
and apparatus; security and access control systems and apparatus; plumbing systems; water heaters, ranges, stoves, microwave ovens,
refrigerators, dishwashers, garbage disposers, washers, dryers and other appliances; light fixtures, awnings, storm windows and
storm doors; pictures, screens, blinds, shades, curtains and curtain rods; mirrors; cabinets, paneling, rugs and floor and wall
coverings; fences, trees and plants; swimming pools; and exercise equipment.

 

“Governmental Authority”
means any board, commission, department, agency or body of any municipal, county, state or federal governmental unit, or any subdivision
of any of them, that has or acquires jurisdiction over the Mortgaged Property, or the use, operation or improvement of the Mortgaged
Property, or over Borrower.

 

“Ground Lease”
means the lease described in the Loan Agreement pursuant to which Borrower leases the Land, as such lease may from time to time
be amended, modified, supplemented, renewed and extended.

 

    	Texas
Multifamily Deed of Trust, Assignment of Rents,
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	Page 2

     

    

 

“Improvements”
means the buildings, structures, improvements now constructed or at any time in the future constructed or placed upon the Land,
including any future alterations, replacements and additions.

 

“Indebtedness”
means the principal of, interest at the fixed or variable rate set forth in the Note on, and all other amounts due at any time
under, the Note, this Instrument or any other Loan Document, including prepayment premiums, late charges, default interest, and
advances as provided in Section 7 to protect the security of this Instrument.

 

“Land” means
the land described in Exhibit A.

 

“Leasehold Estate”
means Borrower’s interest in the Land and any other real property leased by Borrower pursuant to the Ground Lease, if applicable,
including all of the following:

 

		(a)	All rights of Borrower to renew or extend the term of the Ground Lease.

 

		(b)	All amounts deposited by Borrower with Ground Lessor under the Ground Lease.

 

		(c)	Borrower’s right or privilege to terminate, cancel, surrender, modify or amend the Ground
Lease.

 

		(d)	All other options, privileges and rights granted and demised to Borrower under the Ground Lease
and all appurtenances with respect to the Ground Lease.

 

“Leases” means
all present and future leases, subleases, licenses, concessions or grants or other possessory interests now or hereafter in force,
whether oral or written, covering or affecting the Mortgaged Property, or any portion of the Mortgaged Property (including proprietary
leases or occupancy agreements if Borrower is a cooperative housing corporation), and all modifications, extensions or renewals.

 

“Lender” means
the entity identified as “Lender” in the first paragraph of this Instrument, or any subsequent holder of the Note.

 

“Loan Agreement”
means the Multifamily Loan and Security Agreement executed by Borrower in favor of Lender and dated as of the date of this Instrument,
as such agreement may be amended from time to time.

 

“Loan Documents”
means the Note, this Instrument, the Loan Agreement, all guaranties, all indemnity agreements, all collateral agreements, UCC filings,
O&M Programs, the MMP and any other documents now or in the future executed by Borrower, any guarantor or any other Person
in connection with the loan evidenced by the Note, as such documents may be amended from time to time.

 

“Loan Servicer”
means the entity that from time to time is designated by Lender or its designee to collect payments and deposits and receive Notices
under the Note, this Instrument and any other Loan Document, and otherwise to service the loan evidenced by the Note for the benefit
of Lender. Unless Borrower receives Notice to the contrary, the Loan Servicer is the entity identified as “Lender”
in the first paragraph of this Instrument.

 

    	Texas
Multifamily Deed of Trust, Assignment of Rents,
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	Page 3

     

    

 

“Mortgaged Property”
means all of Borrower’s present and future right, title and interest in and to all of the following:

 

		(a)	The Land, or, if Borrower’s interest in the Land is pursuant to a Ground Lease, the Ground
Lease and the Leasehold Estate.

 

		(b)	The Improvements.

 

		(c)	The Fixtures.

 

		(d)	The Personalty.

 

		(e)	All current and future rights, including air rights, development rights, zoning rights and other
similar rights or interests, easements, tenements, rights of way, strips and gores of land, streets, alleys, roads, sewer rights,
waters, watercourses and appurtenances related to or benefiting the Land or the Improvements, or both, and all rights-of-way, streets,
alleys and roads which may have been or may in the future be vacated.

 

		(f)	All proceeds paid or to be paid by any insurer of the Land, the Improvements, the Fixtures, the
Personalty or any other part of the Mortgaged Property, whether or not Borrower obtained the insurance pursuant to Lender’s
requirement.

 

		(g)	All awards, payments and other compensation made or to be made by any municipal, state or federal
authority with respect to the Land, the Improvements, the Fixtures, the Personalty or any other part of the Mortgaged Property,
including any awards or settlements resulting from condemnation proceedings or the total or partial taking of the Land, the Improvements,
the Fixtures, the Personalty or any other part of the Mortgaged Property under the power of eminent domain or otherwise and including
any conveyance in lieu thereof.

 

		(h)	All contracts, options and other agreements for the sale of the Land, or the Leasehold Estate,
as applicable, the Improvements, the Fixtures, the Personalty or any other part of the Mortgaged Property entered into by Borrower
now or in the future, including cash or securities deposited to secure performance by parties of their obligations.

 

		(i)	All proceeds from the conversion, voluntary or involuntary, of any of the items described in subsections
(a) through (h) inclusive into cash or liquidated claims, and the right to collect such proceeds.

 

		(j)	All Rents and Leases.

 

		(k)	All earnings, royalties, accounts receivable, issues and profits from the Land, the Improvements
or any other part of the Mortgaged Property, and all undisbursed proceeds of the loan secured by this Instrument.

 

		(l)	All Imposition Reserve Deposits.

 

    	Texas
Multifamily Deed of Trust, Assignment of Rents,
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	Page 4

     

    

 

		(m)	All refunds or rebates of Impositions by Governmental Authority or insurance company (other than
refunds applicable to periods before the real property tax year in which this Instrument is dated).

 

		(n)	All tenant security deposits which have not been forfeited by any tenant under any Lease and any
bond or other security in lieu of such deposits.

 

		(o)	All names under or by which any of the above Mortgaged Property may be operated or known, and all
trademarks, trade names, and goodwill relating to any of the Mortgaged Property.

 

		(p)	If required by the terms of Section 4.05 of the Loan Agreement, all rights under the Letter
of Credit and the Proceeds, as such Proceeds may increase or decrease from time to time.

 

		(q)	If the Note provides for interest to accrue at a floating or variable rate and there is a Cap Agreement,
the Cap Collateral.

 

“Note” means
the Multifamily Note (including any Amended and Restated Note, Consolidated, Amended and Restated Note, or Extended and Restated
Note) executed by Borrower in favor of Lender and dated as of the date of this Instrument, including all schedules, riders, allonges
and addenda, as such Multifamily Note may be amended, modified and/or restated from time to time.

 

“Notice” or
“Notices” means all notices, demands and other communication required under the Loan Documents, provided in
accordance with the requirements of Section 11.03 of the Loan Agreement.

 

“Person”
means any natural person, sole proprietorship, corporation, general partnership, limited partnership, limited liability company,
limited liability partnership, limited liability limited partnership, joint venture, association, joint stock company, bank, trust,
estate, unincorporated organization, any federal, state, county or municipal government (or any agency or political subdivision
thereof), endowment fund or any other form of entity.

 

“Personalty”
means all of the following:

 

		(a)	Accounts (including deposit accounts) of Borrower related to the Mortgaged Property.

 

		(b)	Equipment and inventory owned by Borrower, which are used now or in the future in connection with
the ownership, management or operation of the Land or Improvements or are located on the Land or Improvements, including furniture,
furnishings, machinery, building materials, goods, supplies, tools, books, records (whether in written or electronic form) and
computer equipment (hardware and software).

 

		(c)	Other tangible personal property owned by Borrower which is used now or in the future in connection
with the ownership, management or operation of the Land or Improvements or is located on the Land or in the Improvements, including
ranges, stoves, microwave ovens, refrigerators, dishwashers, garbage disposers, washers, dryers and other appliances (other than
Fixtures).

 

    	Texas
Multifamily Deed of Trust, Assignment of Rents,
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	Page 5

     

    

 

		(d)	Any operating agreements relating to the Land or the Improvements.

 

		(e)	Any surveys, plans and specifications and contracts for architectural, engineering and construction
services relating to the Land or the Improvements.

 

		(f)	All other intangible property, general intangibles and rights relating to the operation of, or
used in connection with, the Land or the Improvements, including all governmental permits relating to any activities on the Land
and including subsidy or similar payments received from any sources, including a Governmental Authority.

 

		(g)	Any rights of Borrower in or under letters of credit.

 

“Property Jurisdiction”
means the jurisdiction in which the Land is located.

 

“Rents” means
all rents (whether from residential or non-residential space), revenues and other income of the Land or the Improvements, parking
fees, laundry and vending machine income and fees and charges for food, health care and other services provided at the Mortgaged
Property, whether now due, past due or to become due, and deposits forfeited by tenants,
and, if Borrower is a cooperative housing corporation or association, maintenance
fees, charges or assessments payable by shareholders or residents under proprietary leases or occupancy agreements, whether now
due, past due, or to become due.

 

“Taxes” means
all taxes, assessments, vault rentals and other charges, if any, whether general, special or otherwise, including all assessments
for schools, public betterments and general or local improvements, which are levied, assessed or imposed by any public authority
or quasi-public authority, and which, if not paid, will become a Lien on the Land or the Improvements.

 

		2.	Uniform Commercial Code Security Agreement.

 

		(a)	This Instrument is also a security agreement under the Uniform Commercial Code for any of the Mortgaged
Property which, under applicable law, may be subjected to a security interest under the Uniform Commercial Code, for the purpose
of securing Borrower’s obligations under this Instrument and to further secure Borrower’s obligations under the Note,
this Instrument and other Loan Documents, whether such Mortgaged Property is owned now or acquired in the future, and all products
and cash and non-cash proceeds thereof (collectively, “UCC Collateral”), and by this Instrument, Borrower grants
to Lender a security interest in the UCC Collateral. To the extent necessary under applicable law, Borrower hereby authorizes Lender
to prepare and file financing statements, continuation statements and financing statement amendments in such form as Lender may
require to perfect or continue the perfection of this security interest.

 

		(b)	Unless Borrower gives Notice to Lender within 30 days after the occurrence of any of the following,
and executes and delivers to Lender modifications or supplements of this Instrument (and any financing statement which may be filed
in connection with this Instrument) as Lender may require, Borrower will not (i) change its name, identity, structure or jurisdiction
of organization; (ii) change the location of its place of business (or chief executive office if more than one place of business);
or (iii) add to or change any location at which any of the Mortgaged Property is stored, held or located.

 

    	Texas
Multifamily Deed of Trust, Assignment of Rents,
Security Agreement and Fixture Filing
	Page 6

     

    

 

		(c)	If an Event of Default has occurred and is continuing, Lender will have the remedies of a secured
party under the Uniform Commercial Code, in addition to all remedies provided by this Instrument or existing under applicable law.
In exercising any remedies, Lender may exercise its remedies against the UCC Collateral separately or together, and in any order,
without in any way affecting the availability of Lender’s other remedies.

 

		(d)	This Instrument also constitutes a financing statement with respect to any part of the Mortgaged
Property that is or may become a Fixture, if permitted by applicable law.

 

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

 

		(a)	As part of the consideration for the Indebtedness, Borrower absolutely and unconditionally assigns
and transfers to Lender all Rents.

 

		(i)	It is the intention of Borrower to establish a present, absolute and irrevocable transfer and assignment
to Lender of all Rents and to authorize and empower Lender to collect and receive all Rents without the necessity of further action
on the part of Borrower.

 

		(ii)	Promptly upon request by Lender, Borrower agrees to execute and deliver such further assignments
as Lender may from time to time require. Borrower and Lender intend this assignment of Rents to be immediately effective and to
constitute an absolute present assignment and not an assignment for additional security only.

 

		(iii)	For purposes of giving effect to this absolute assignment of Rents, and for no other purpose, Rents
will not be deemed to be a part of the Mortgaged Property. However, if this present, absolute and unconditional assignment of Rents
is not enforceable by its terms under the laws of the Property Jurisdiction, then the Rents will be included as a part of the Mortgaged
Property and it is the intention of Borrower that in this circumstance this Instrument create and perfect a Lien on Rents in favor
of Lender, which Lien will be effective as of the date of this Instrument.

 

	    (b)	(i)	Until the occurrence of an Event of Default, Lender hereby
grants to Borrower a revocable license to collect and receive all Rents, to hold all Rents in trust for the benefit of Lender
and to apply all Rents to pay the installments of interest and principal then due and payable under the Note and the other amounts
then due and payable under the other Loan Documents, including Imposition Reserve Deposits, and to pay the current costs and expenses
of managing, operating and maintaining the Mortgaged Property, including utilities, Taxes and insurance premiums (to the extent
not included in Imposition Reserve Deposits), tenant improvements and other capital expenditures.

 

		(ii)	So long as no Event of Default has occurred and is continuing, the Rents remaining after application
pursuant to the preceding sentence may be retained by Borrower free and clear of, and released from, Lender’s rights with
respect to Rents under this Instrument.

 

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Multifamily Deed of Trust, Assignment of Rents,
Security Agreement and Fixture Filing
	Page 7

     

    

 

		(iii)	After the occurrence of an Event of Default, and during the continuance of such Event of Default,
Borrower authorizes Lender to collect, sue for and compromise Rents and directs each tenant of the Mortgaged Property to pay all
Rents to, or as directed by, Lender. From and after the occurrence of an Event of Default, and during the continuance of such Event
of Default, and without the necessity of Lender entering upon and taking and maintaining control of the Mortgaged Property directly,
or by a receiver, Borrower’s license to collect Rents will automatically terminate and Lender will without Notice be entitled
to all Rents as they become due and payable, including Rents then due and unpaid. Borrower will pay to Lender upon demand all Rents
to which Lender is entitled.

 

		(iv)	At any time on or after the date of Lender’s demand for Rents, Lender may give, and Borrower
hereby irrevocably authorizes Lender to give, notice to all tenants of the Mortgaged Property instructing them to pay all Rents
to Lender. No tenant will be obligated to inquire further as to the occurrence or continuance of an Event of Default. No tenant
will be obligated to pay to Borrower any amounts which are actually paid to Lender in response to such a notice. Any such notice
by Lender will be delivered to each tenant personally, by mail or by delivering such demand to each rental unit. Borrower will
not interfere with and will cooperate with Lender’s collection of such Rents.

 

		(c)	If an Event of Default has occurred and is continuing, then Lender will have each of the following
rights and may take any of the following actions:

 

		(i)	Lender may, regardless of the adequacy of Lender’s security or the solvency of Borrower and
even in the absence of waste, enter upon and take and maintain full control of the Mortgaged Property in order to perform all acts
that Lender in its discretion determines to be necessary or desirable for the operation and maintenance of the Mortgaged Property,
including the execution, cancellation or modification of Leases, the collection of all Rents, the making of Repairs to the Mortgaged
Property and the execution or termination of contracts providing for the management, operation or maintenance of the Mortgaged
Property, for the purposes of enforcing the assignment of Rents pursuant to Section 3(a), protecting the Mortgaged Property
or the security of this Instrument, or for such other purposes as Lender in its discretion may deem necessary or desirable.

 

		(ii)	Alternatively, if an Event of Default has occurred and is continuing, regardless of the adequacy
of Lender’s security, without regard to Borrower’s solvency and without the necessity of giving prior notice (oral
or written) to Borrower, Lender may apply to any court having jurisdiction for the appointment of a receiver for the Mortgaged
Property to take any or all of the actions set forth in the preceding sentence. If Lender elects to seek the appointment of a receiver
for the Mortgaged Property at any time after an Event of Default has occurred and is continuing, Borrower, by its execution of
this Instrument, expressly consents to the appointment of such receiver, including the appointment of a receiver ex parte
if permitted by applicable law.

 

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Multifamily Deed of Trust, Assignment of Rents,
Security Agreement and Fixture Filing
	Page 8

     

    

 

		(iii)	If
                                         Borrower is a housing cooperative corporation or association, Borrower hereby agrees
                                         that if a receiver is appointed, the order appointing the receiver may contain a provision
                                         requiring the receiver to pay the installments of interest and principal then due and
                                         payable under the Note and the other amounts then due and payable under the other Loan
                                         Documents, including Imposition Reserve Deposits, it being acknowledged and agreed that
                                         the Indebtedness is an obligation of Borrower and must be paid out of maintenance charges
                                         payable by Borrower’s tenant shareholders under their proprietary leases or occupancy
                                         agreements.

 

		(iv)	Lender or the receiver, as the case may be, will be entitled to receive a reasonable fee for managing
the Mortgaged Property.

 

		(v)	Immediately upon appointment of a receiver or immediately upon Lender’s entering upon and
taking possession and control of the Mortgaged Property, Borrower will surrender possession of the Mortgaged Property to Lender
or the receiver, as the case may be, and will deliver to Lender or the receiver, as the case may be, all documents, records (including
records on electronic or magnetic media), accounts, surveys, plans, and specifications relating to the Mortgaged Property and all
security deposits and prepaid Rents.

 

		(vi)	If Lender takes possession and control of the Mortgaged Property, then Lender may exclude Borrower
and its representatives from the Mortgaged Property.

 

Borrower acknowledges and agrees
that the exercise by Lender of any of the rights conferred under this Section 3 will not be construed to make Lender a mortgagee-in-possession
of the Mortgaged Property so long as Lender has not itself entered into actual possession of the Land and Improvements.

 

		(d)	If Lender enters the Mortgaged Property, Lender will be liable to account only to Borrower and
only for those Rents actually received. Except to the extent of Lender’s gross negligence or willful misconduct, Lender will
not be liable to Borrower, anyone claiming under or through Borrower or anyone having an interest in the Mortgaged Property, by
reason of any act or omission of Lender under Section 3(c), and Borrower hereby releases and discharges Lender from any such
liability to the fullest extent permitted by law.

 

		(e)	If the Rents are not sufficient to meet the costs of taking control of and managing the Mortgaged
Property and collecting the Rents, any funds expended by Lender for such purposes will become an additional part of the Indebtedness
as provided in Section 7.

 

		(f)	Any entering upon and taking of control of the Mortgaged Property by Lender or the receiver, as
the case may be, and any application of Rents as provided in this Instrument will not cure or waive any Event of Default or invalidate
any other right or remedy of Lender under applicable law or provided for in this Instrument.

 

    	Texas
Multifamily Deed of Trust, Assignment of Rents,
Security Agreement and Fixture Filing
	Page 9

     

    

 

		4.	Assignment of Leases; Leases Affecting the Mortgaged Property.

 

		(a)	As part of the consideration for the Indebtedness, Borrower absolutely and unconditionally assigns
and transfers to Lender all of Borrower’s right, title and interest in, to and under the Leases, including Borrower’s
right, power and authority to modify the terms of any such Lease, or extend or terminate any such Lease.

 

		(i)	It is the intention of Borrower to establish a present, absolute and irrevocable transfer and assignment
to Lender of all of Borrower’s right, title and interest in, to and under the Leases. Borrower and Lender intend this assignment
of the Leases to be immediately effective and to constitute an absolute present assignment and not an assignment for additional
security only.

 

		(ii)	For purposes of giving effect to this absolute assignment of the Leases, and for no other purpose,
the Leases will not be deemed to be a part of the Mortgaged Property.

 

		(iii)	However, if this present, absolute and unconditional assignment of the Leases is not enforceable
by its terms under the laws of the Property Jurisdiction, then the Leases will be included as a part of the Mortgaged Property
and it is the intention of Borrower that in this circumstance this Instrument create and perfect a Lien on the Leases in favor
of Lender, which Lien will be effective as of the date of this Instrument.

 

		(b)	Until Lender gives Notice to Borrower of Lender’s exercise of its rights under this Section 4,
Borrower will have all rights, power and authority granted to Borrower under any Lease (except as otherwise limited by this Section or
any other provision of this Instrument), including the right, power and authority to modify the terms of any Lease or extend or
terminate any Lease. Upon the occurrence of an Event of Default, and during the continuance of such Event of Default, the permission
given to Borrower pursuant to the preceding sentence to exercise all rights, power and authority under Leases will automatically
terminate. Borrower will comply with and observe Borrower’s obligations under all Leases, including Borrower’s obligations
pertaining to the maintenance and disposition of tenant security deposits.

 

	   (c)	(i)	Borrower acknowledges and agrees that the exercise by Lender,
either directly or by a receiver, of any of the rights conferred under this Section 4 will not be construed to make Lender
a mortgagee-in-possession of the Mortgaged Property so long as Lender has not itself entered into actual possession of the Land
and the Improvements.

 

		(ii)	The acceptance by Lender of the assignment of the Leases pursuant to Section 4(a) will
not at any time or in any event obligate Lender to take any action under this Instrument or to expend any money or to incur any
expenses.

 

		(iii)	Except to the extent of Lender’s gross negligence or willful misconduct, Lender will not
be liable in any way for any injury or damage to person or property sustained by any Person or Persons in or about the Mortgaged
Property.

 

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Multifamily Deed of Trust, Assignment of Rents,
Security Agreement and Fixture Filing
	Page 10

     

    

 

		(iv)	Prior to Lender’s actual entry into and taking possession of the Mortgaged Property, Lender
will not be obligated for any of the following:

 

		(A)	Lender will not be obligated to perform any of the terms, covenants and conditions
contained in any Lease (or otherwise have any obligation with respect to any Lease).

 

		(B)	Lender will not be obligated to appear in or defend any action or proceeding relating
to the Lease or the Mortgaged Property.

 

		(C)	Lender will not be responsible for the operation, control, care, management or repair
of the Mortgaged Property or any portion of the Mortgaged Property. The execution of this Instrument by Borrower will constitute
conclusive evidence that all responsibility for the operation, control, care, management and repair of the Mortgaged Property
is and will be that of Borrower, prior to such actual entry and taking of possession.

 

		(d)	Upon delivery of Notice by Lender to Borrower of Lender’s exercise of Lender’s rights
under this Section 4 at any time after the occurrence of an Event of Default, and during the continuance of such Event of
Default, and without the necessity of Lender entering upon and taking and maintaining control of the Mortgaged Property directly,
by a receiver, or by any other manner or proceeding permitted by the laws of the Property Jurisdiction, Lender immediately will
have all rights, powers and authority granted to Borrower under any Lease, including the right, power and authority to modify the
terms of any such Lease, or extend or terminate any such Lease.

 

		(e)	Borrower will, promptly upon Lender’s request, deliver to Lender an executed copy of each
residential Lease then in effect.

 

		(f)	If Borrower is a cooperative housing corporation or association, notwithstanding anything to the
contrary contained in this Instrument, so long as Borrower remains a cooperative housing corporation or association and is not
in breach of any covenant of this Instrument, Lender consents to the following:

 

		(i)	Borrower may execute leases of apartments for a term in excess of 2 years to a tenant shareholder
of Borrower, so long as such leases, including proprietary leases, are and will remain subordinate to the Lien of this Instrument.

 

		(ii)	Borrower may surrender or terminate such leases of apartments where the surrendered or terminated
lease is immediately replaced or where Borrower makes its best efforts to secure such immediate replacement by a newly-executed
lease of the same apartment to a tenant shareholder of Borrower. However, no consent is given by Lender to any execution, surrender,
termination or assignment of a lease under terms that would waive or reduce the obligation of the resulting tenant shareholder
under such lease to pay cooperative assessments in full when due or the obligation of the former tenant shareholder to pay any
unpaid portion of such assessments.

 

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Multifamily Deed of Trust, Assignment of Rents,
Security Agreement and Fixture Filing
	Page 11

     

    

 

		5.	Prepayment Premium. Borrower will be required to pay a prepayment premium in connection
with certain prepayments of the Indebtedness, including a payment made after Lender’s exercise of any right of acceleration
of the Indebtedness, as provided in the Note.

 

		6.	Application of Payments. If at any time Lender receives, from Borrower or otherwise, any
amount applicable to the Indebtedness which is less than all amounts due and payable at such time, then Lender may apply that payment
to amounts then due and payable in any manner and in any order determined by Lender, in Lender’s discretion. Neither Lender’s
acceptance of an amount that is less than all amounts then due and payable nor Lender’s application of such payment in the
manner authorized will constitute or be deemed to constitute either a waiver of the unpaid amounts or an accord and satisfaction.
Notwithstanding the application of any such amount to the Indebtedness, Borrower’s obligations under this Instrument, the
Note and all other Loan Documents will remain unchanged.

 

		7.	Protection of Lender’s Security; Instrument Secures Future Advances.

 

		(a)	If Borrower fails to perform any of its obligations under this Instrument or any other Loan Document,
or if any action or proceeding is commenced which purports to affect the Mortgaged Property, Lender’s security or Lender’s
rights under this Instrument, including eminent domain, insolvency, code enforcement, civil or criminal forfeiture, enforcement
of Hazardous Materials Laws, fraudulent conveyance or reorganizations or proceedings involving a bankrupt or decedent, then Lender
at Lender’s option may make such appearances, file such documents, disburse such sums and take such actions as Lender reasonably
deems necessary to perform such obligations of Borrower and to protect Lender’s interest, including all of the following:

 

		(i)	Lender may pay Attorneys’ Fees and Costs.

 

		(ii)	Lender may pay fees and out-of-pocket expenses of accountants, inspectors and consultants.

 

		(iii)	Lender may enter upon the Mortgaged Property to make Repairs or secure the Mortgaged Property.

 

		(iv)	Lender may procure the Insurance required by the Loan Agreement.

 

		(v)	Lender may pay any amounts which Borrower has failed to pay under the Loan Agreement.

 

		(vi)	Lender may perform any of Borrower’s obligations under the Loan Agreement.

 

		(vii)	Lender may make advances to pay, satisfy or discharge any obligation of Borrower for the payment
of money that is secured by a Prior Lien.

 

		(b)	Any amounts disbursed by Lender under this Section 7, or under any other provision of this Instrument
that treats such disbursement as being made under this Section 7, will be secured by this Instrument, will be added to, and become
part of, the principal component of the Indebtedness, will be immediately due and payable and will bear interest from the date
of disbursement until paid at the Default Rate.

 

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Multifamily Deed of Trust, Assignment of Rents,
Security Agreement and Fixture Filing
	Page 12

     

    

 

		(c)	Nothing in this Section 7 will require Lender to incur any expense or take any action.

 

		8.	Events of Default. An Event of Default under the Loan Agreement will constitute an Event
of Default under this Instrument.

 

		9.	Remedies Cumulative. Each right and remedy provided in this Instrument is distinct from
all other rights or remedies under this Instrument, the Loan Agreement or any other Loan Document or afforded by applicable law
or equity, and each will be cumulative and may be exercised concurrently, independently or successively, in any order. Lender’s
exercise of any particular right or remedy will not in any way prevent Lender from exercising any other right or remedy available
to Lender. Lender may exercise any such remedies from time to time and as often as Lender chooses.

 

		10.	Waiver of Statute of Limitations, Offsets, and Counterclaims. Borrower waives the right
to assert any statute of limitations as a bar to the enforcement of the Lien of this Instrument or to any action brought to enforce
any Loan Document. Borrower hereby waives the right to assert a counterclaim, other than a compulsory counterclaim, in any action
or proceeding brought against it by Lender or otherwise to offset any obligations to make the payments required by the Loan Documents.
No failure by Lender to perform any of its obligations under this Instrument will be a valid defense to, or result in any offset
against, any payments that Borrower is obligated to make under any of the Loan Documents.

 

		11.	Waiver of Marshalling.

 

		(a)	Notwithstanding the existence of any other security interests in the Mortgaged Property held by
Lender or by any other party, Lender will have the right to determine the order in which any or all of the Mortgaged Property will
be subjected to the remedies provided in this Instrument, the Note, the Loan Agreement or any other Loan Document or applicable
law. Lender will have the right to determine the order in which any or all portions of the Indebtedness are satisfied from the
proceeds realized upon the exercise of such remedies.

 

		(b)	Borrower and any party who now or in the future acquires a security interest in the Mortgaged Property
and who has actual or constructive notice of this Instrument waives any and all right to require the marshalling of assets or to
require that any of the Mortgaged Property be sold in the inverse order of alienation or that any of the Mortgaged Property be
sold in parcels or as an entirety in connection with the exercise of any of the remedies permitted by applicable law or provided
in this Instrument.

 

		12.	Further Assurances; Lender’s Expenses. 

 

		(a)	Borrower will deliver, at its sole cost and expense, all further acts, deeds, conveyances, assignments,
estoppel certificates, financing statements or amendments, transfers and assurances as Lender may require from time to time in
order to better assure, grant and convey to Lender the rights intended to be granted, now or in the future, to Lender under this
Instrument and the Loan Documents or in connection with Lender’s consent rights under Article VII of the Loan Agreement.

 

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Multifamily Deed of Trust, Assignment of Rents,
Security Agreement and Fixture Filing
	Page 13

     

    

 

		(b)	Borrower acknowledges and agrees that, in connection with each request by Borrower under this Instrument
or any Loan Document, Borrower will pay all reasonable Attorneys’ Fees and Costs and expenses incurred by Lender, including
any fees payable in accordance with any request for further assurances or an estoppel certificate pursuant to the Loan Agreement,
regardless of whether the matter is approved, denied or withdrawn. Any amounts payable by Borrower under this Instrument or under
any other Loan Document will be deemed a part of the Indebtedness, will be secured by this Instrument and will bear interest at
the Default Rate if not fully paid within 10 days of written demand for payment.

 

		13.	Governing Law; Consent to Jurisdiction and Venue. This Instrument, and any Loan Document
which does not itself expressly identify the law that is to apply to it, will be governed by the laws of the Property Jurisdiction.
Borrower agrees that any controversy arising under or in relation to the Note, this Instrument or any other Loan Document 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 the Note, any security for the Indebtedness
or any other Loan Document. Borrower irrevocably consents to service, jurisdiction and venue of such courts for any such litigation
and waives any other venue to which it might be entitled by virtue of domicile, habitual residence or otherwise. However, nothing
in this Section 13 is intended to limit Lender’s right to bring any suit, action or proceeding relating to matters under
this Instrument in any court of any other jurisdiction.

 

		14.	Notice. All Notices, demands and other communications under or concerning this Instrument
will be governed by the terms set forth in the Loan Agreement.

 

		15.	Successors and Assigns Bound. This Instrument will bind the respective successors and assigns
of Borrower and Lender, and the rights granted by this Instrument will inure to Lender’s successors and assigns.

 

		16.	Joint and Several Liability. If more than one Person signs this Instrument as Borrower,
the obligations of such Persons will be joint and several.

 

		17.	Relationship of Parties; No Third Party Beneficiary.

 

		(a)	The relationship between Lender and Borrower will be solely that of creditor and debtor, respectively,
and nothing contained in this Instrument will create any other relationship between Lender and Borrower. Nothing contained in this
Instrument will constitute Lender as a joint venturer, partner or agent of Borrower, or render Lender liable for any debts, obligations,
acts, omissions, representations or contracts of Borrower.

 

		(b)	No creditor of any party to this Instrument and no other Person will be a third party beneficiary
of this Instrument or any other Loan Document. Without limiting the generality of the preceding sentence, (i) any arrangement (“Servicing
Arrangement”) between Lender and any Loan Servicer for loss sharing or interim advancement of funds will constitute a
contractual obligation of such Loan Servicer that is independent of the obligation of Borrower for the payment of the Indebtedness,
(ii) Borrower will not be a third party beneficiary of any Servicing Arrangement, and (iii) no payment by the Loan Servicer under
any Servicing Arrangement will reduce the amount of the Indebtedness.

 

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Multifamily Deed of Trust, Assignment of Rents,
Security Agreement and Fixture Filing
	Page 14

     

    

 

		18.	Severability; Amendments.

 

		(a)	The invalidity or unenforceability of any provision of this Instrument will not affect the validity
or enforceability of any other provision, and all other provisions will remain in full force and effect. This Instrument contains
the entire agreement among the parties as to the rights granted and the obligations assumed in this Instrument.

 

		(b)	This Instrument may not be amended or modified except by a writing signed by the party against
whom enforcement is sought; provided, however, that in the event of a Transfer prohibited by or requiring Lender’s approval
under Article VII of the Loan Agreement, some or all of the modifications to the Loan Documents (if any) may be modified or rendered
void by Lender at Lender’s option by Notice to Borrower and the transferee(s).

 

		19.	Construction. 

 

		(a)	The captions and headings of the Sections of this Instrument are for convenience only and will
be disregarded in construing this Instrument. Any reference in this Instrument to a “Section” will, unless otherwise
explicitly provided, be construed as referring to a Section of this Instrument.

 

		(b)	Any reference in this Instrument to a statute or regulation will be construed as referring to that
statute or regulation as amended from time to time.

 

		(c)	Use of the singular in this Instrument includes the plural and use of the plural includes the singular.

 

		(d)	As used in this Instrument, the term “including” means “including, but not limited
to” and the term “includes” means “includes without limitation.”

 

		(e)	The use of one gender includes the other gender, as the context may require.

 

		(f)	Unless the context requires otherwise any definition of or reference to any agreement, instrument
or other document in this Instrument will be construed as referring to such agreement, instrument or other document as from time
to time amended, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications
set forth in this Instrument).

 

		(g)	Any reference in this Instrument to any person will be construed to include such person’s
successors and assigns.

 

		20.	Subrogation. If, and
                                         to the extent that, the proceeds of the loan evidenced by the Note,
                                         or subsequent advances under Section 7, are used to pay, satisfy or discharge
                                         a Prior Lien, such loan proceeds
                                         or advances will be deemed to have been advanced by Lender at Borrower’s
                                         request, and Lender will automatically, and without further action on its part, be subrogated
                                         to the rights, including Lien priority, of the owner or holder of the obligation secured
                                         by the Prior Lien, whether or not the Prior Lien is released.

 

		21-30.	Reserved.

 

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Multifamily Deed of Trust, Assignment of Rents,
Security Agreement and Fixture Filing
	Page 15

     

    

 

		31.	Acceleration; Remedies. 

 

		(a)	At any time during the existence of an Event of Default, Lender, at Lender’s option, may
declare the Indebtedness to be immediately due and payable without further demand, and may invoke the power of sale and any other
remedies permitted by Texas law or provided in this Instrument, the Loan Agreement or in any other Loan Document. Borrower acknowledges
that the power of sale granted in this Instrument may be exercised by Lender without prior judicial hearing. Lender will be entitled
to collect all costs and expenses incurred in pursuing such remedies, including Attorneys’ Fees and Costs, costs of documentary
evidence, abstracts and title reports.

 

		(b)	If Lender invokes the power of sale, Lender may, by and through the Trustee, or otherwise, sell
or offer for sale the Mortgaged Property in such portions, order and parcels as Lender may determine, with or without having first
taken possession of the Mortgaged Property, to the highest bidder for cash at public auction. Such sale will be made at the courthouse
door of the county in which all or any part of the Land to be sold is situated (whether the parts or parcel, if any, situated in
different counties are contiguous or not, and without the necessity of having any Personalty present at such sale) on the first
Tuesday of any month between the hours of 10:00 a.m. and 4:00 p.m., after advertising the time, place and terms of sale and that
portion of the Mortgaged Property to be sold by posting or causing to be posted written or printed notice of sale at least 21 days
before the date of the sale at the courthouse door of the county in which the sale is to be made and at the courthouse door of
any other county in which a portion of the Land may be situated, and by filing such notice with the County Clerk(s) of the county(s)
in which all or a portion of the Land may be situated, which notice may be posted and filed by the Trustee acting, or by any person
acting for the Trustee, and Lender has, at least 21 days before the date of the sale, served written or printed notice of the proposed
sale by certified mail on each debtor obligated to pay the Indebtedness according to Lender’s records by the deposit of such
notice, enclosed in a postpaid wrapper, properly addressed to such debtor at debtor’s most recent address as shown by Lender’s
records, in a post office or official depository under the care and custody of the United States Postal Service. The affidavit
of any person having knowledge of the facts to the effect that such service was completed will be prima facie evidence of
the fact of service.

 

		(c)	Trustee will deliver to the purchaser at the sale, within a reasonable time after the sale, a deed
conveying the Mortgaged Property so sold in fee simple with covenants of general warranty. Borrower covenants and agrees to defend
generally the purchaser’s title to the Mortgaged Property against all claims and demands. The recitals in Trustee’s
deed will be prima facie evidence of the truth of the statements contained in those recitals. Trustee will apply the proceeds
of the sale in the following order: (i) to all reasonable costs and expenses of the sale, including reasonable Trustee’s
fees not to exceed 5% of the gross sales price, Attorneys’ Fees and Costs and costs of title evidence; (ii) to the Indebtedness
in such order as Lender, in Lender’s discretion, directs; and (iii) the excess, if any, to the person or persons legally
entitled to the excess.

 

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Multifamily Deed of Trust, Assignment of Rents,
Security Agreement and Fixture Filing
	Page 16

     

    

 

		(d)	If all or any part of the Mortgaged Property is sold pursuant to this Section, Borrower will be
divested of any and all interest and claim to the Mortgaged Property, including any interest or claim to all insurance policies,
utility deposits, bonds, loan commitments and other intangible property included as a part of the Mortgaged Property. Additionally,
after a sale of all or any part of the Land, Improvements, Fixtures and Personalty, Borrower will be considered a tenant at sufferance
of the purchaser of the same, and the purchaser will be entitled to immediate possession of such property. If Borrower will fail
to vacate the Mortgaged Property immediately, the purchaser may and will have the right, without further notice to Borrower, to
go into any justice court in any precinct or county in which the Mortgaged Property is located and file an action in forcible entry
and detainer, which action will lie against Borrower or its assigns or legal representatives, as a tenant at sufferance. This remedy
is cumulative of any and all remedies the purchaser may have under this Instrument or otherwise.

 

		(e)	In the event an interest in any of the Mortgaged Property is foreclosed upon pursuant to a judicial
or nonjudicial foreclosure sale, Borrower agrees as follows: notwithstanding the provisions of Sections 51.003, 51.004, and 51.005
of the Texas Property Code (as the same may be amended from time to time), and to the extent permitted by law, Borrower agrees
that Lender will be entitled to seek a deficiency judgment from Borrower and any other party obligated on the Note equal to the
difference between the amount owing on the Note and the amount for which the Mortgaged Property was sold pursuant to judicial or
nonjudicial foreclosure sale. Borrower expressly recognizes that this Section constitutes a waiver of the above-cited provisions
of the Texas Property Code which would otherwise permit Borrower and other persons against whom a recovery of deficiencies is sought
or Guarantor independently (even absent the initiation of deficiency proceedings against them) to present competent evidence of
the fair market value of the Mortgaged Property as of the date of the foreclosure sale and offset against any deficiency the amount
by which the foreclosure sale price is determined to be less than such fair market value. Borrower further recognizes and agrees
that this waiver creates an irrebuttable presumption that the foreclosure sale price is equal to the fair market value of the Mortgaged
Property for purposes of calculating deficiencies owed by Borrower, Guarantor, and others against whom recovery of a deficiency
is sought. Alternatively, in the event the waiver provided for in this Section is determined by a court of competent jurisdiction
to be unenforceable, in any action for a deficiency after a foreclosure under this Instrument, if any person against whom recovery
is sought requests the court in which the action is pending to determine the fair market value of the Mortgaged Property, as of
the date of the foreclosure sale, the following will be the basis of the court’s determination of fair market value:

 

		(i)	The Mortgaged Property will be valued “as is” and in its condition as of the date of
foreclosure, and no assumption of increased value because of post-foreclosure repairs, refurbishment, restorations or improvements
will be made.

 

		(ii)	Any adverse effect on the marketability of title because of the foreclosure or because of any other
title condition not existing as of the date of this Instrument will be considered.

 

		(iii)	The valuation of the Mortgaged Property will be based upon an assumption that the foreclosure purchaser
desires a prompt resale of the Mortgaged Property for cash within a 6 month-period after foreclosure.

 

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Multifamily Deed of Trust, Assignment of Rents,
Security Agreement and Fixture Filing
	Page 17

     

    

 

		(iv)	Although the Mortgaged Property may be disposed of more quickly by the foreclosure purchaser, the
gross valuation of the Mortgaged Property as of the date of foreclosure will be discounted for a hypothetical reasonable holding
period (not to exceed 6 months) at a monthly rate equal to the average monthly interest rate on the Note for the 12 months before
the date of foreclosure.

 

		(v)	The gross valuation of the Mortgaged Property as of the date of foreclosure will be further discounted
and reduced by reasonable estimated costs of disposition, including brokerage commissions, title policy premiums, environmental
assessment and clean-up costs, tax and assessment, prorations, costs to comply with legal requirements and Attorneys’ Fees
and Costs.

 

		(vi)	Expert opinion testimony will be considered only from a licensed appraiser certified by the State
of Texas and, to the extent permitted under Texas law, a member of the Appraisal Institute, having at least 5 years’ experience
in appraising property similar to the Mortgaged Property in the county where the Mortgaged Property is located, and who has conducted
and prepared a complete written appraisal of the Mortgaged Property taking into considerations the factors set forth in this Instrument;
no expert opinion testimony will be considered without such written appraisal.

 

		(vii)	Evidence of comparable sales will be considered only if also included in the expert opinion testimony
and written appraisal referred to in subsection (vi), above.

 

		(viii)	An affidavit executed by Lender to the effect that the foreclosure bid accepted by Trustee was
equal to or greater than the value of the Mortgaged Property determined by Lender based upon the factors and methods set forth
in subsections (i) through (vii) above before the foreclosure will constitute prima facie evidence that the foreclosure
bid was equal to or greater than the fair market value of the Mortgaged Property on the foreclosure date.

 

		(f)	Lender may, at Lender’s option, comply with these provisions in the manner permitted or required
by Title 5, Section 51.002 of the Texas Property Code (relating to the sale of real estate) or by Chapter 9 of the Texas Business
and Commerce Code (relating to the sale of collateral after default by a debtor), as those titles and chapters now exist or may
be amended or succeeded in the future, or by any other present or future articles or enactments relating to same subject. Unless
expressly excluded, the Mortgaged Property will include Rents collected before a foreclosure sale, but attributable to the period
following the foreclosure sale, and Borrower will pay such Rents to the purchaser at such sale.

 

		(g)	At any such sale, all of the following will be true:

 

		(i)	Whether made under the power contained in this Instrument, Section 51.002 of the Texas Property
Code, Chapter 9 of the Texas Business and Commerce Code, any other legal requirement or by virtue of any judicial proceedings or
any other legal right, remedy or recourse, it will not be necessary for Trustee to have physically present, or to have constructive
possession of, the Mortgaged Property. Borrower will deliver to Trustee any portion of the Mortgaged Property not actually or constructively
possessed by Trustee immediately upon demand by Trustee and the title to and right of possession of any such property will pass
to the purchaser as completely as if the property had been actually present and delivered to the purchaser at the sale.

 

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Multifamily Deed of Trust, Assignment of Rents,
Security Agreement and Fixture Filing
	Page 18

     

    

 

		(ii)	Each instrument of conveyance executed by Trustee will contain a general warranty of title, binding
upon Borrower.

 

		(iii)	The recitals contained in any instrument of conveyance made by Trustee will conclusively establish
the truth and accuracy of the matters recited in the Instrument, including nonpayment of the Indebtedness and the advertisement
and conduct of the sale in the manner provided in this Instrument and otherwise by law and the appointment of any successor Trustee.

 

		(iv)	All prerequisites to the validity of the sale will be conclusively presumed to have been satisfied.

 

		(v)	The receipt of Trustee or of such other party or officer making the sale will be sufficient to
discharge to the purchaser or purchasers for such purchaser(s)’ purchase money, and no such purchaser or purchasers, or such
purchaser(s)’ assigns or personal representatives, will thereafter be obligated to see to the application of such purchase
money or be in any way answerable for any loss, misapplication or nonapplication of such purchase money.

 

		(vi)	To the fullest extent permitted by law, Borrower will be completely and irrevocably divested of
all of Borrower’s right, title, interest, claim and demand whatsoever, either at law or in equity, in and to the property
sold, and such sale will be a perpetual bar to any claim to all or any part of the property sold, both at law and in equity, against
Borrower and against any person claiming by, through or under Borrower.

 

		(vii)	To the extent and under such circumstances as are permitted by law, Lender may be a purchaser at
any such sale.

 

		32.	Release. Upon payment of the Indebtedness, Lender will release this Instrument. Borrower
will pay Lender’s reasonable costs incurred in releasing this Instrument.

 

		33.	Trustee.

 

		(a)	Trustee may resign by giving of notice of such resignation in writing to Lender. If Trustee will
die, resign or become disqualified from acting under this Instrument or will fail or refuse to act in accordance with this Instrument
when requested by Lender or if for any reason and without cause Lender will prefer to appoint a substitute trustee to act instead
of the original Trustee named in this Instrument or any prior successor or substitute trustee, Lender will have full power to appoint
a substitute trustee and, if preferred, several substitute trustees in succession who will succeed to all the estate, rights, powers
and duties of the original Trustee named in this Instrument. Such appointment may be executed by an authorized officer, agent or
attorney-in-fact of Lender (whether acting pursuant to a power of attorney or otherwise), and such appointment will be conclusively
presumed to be executed with authority and will be valid and sufficient without proof of any action by Lender.

 

    	Texas
Multifamily Deed of Trust, Assignment of Rents,
Security Agreement and Fixture Filing
	Page 19

     

    

 

		(b)	Any successor Trustee appointed pursuant to this Section will, without any further act, deed or
conveyance, become vested with all the estates, properties, rights, powers and trusts of the predecessor Trustee with like effect
as if originally named as Trustee in this Instrument; but, nevertheless, upon the written request of Lender or such successor Trustee,
the Trustee ceasing to act will execute and deliver an instrument transferring to such successor Trustee, all the estates, properties,
rights, powers and trusts of the Trustee so ceasing to act, and will duly assign, transfer and deliver any of the property and
monies held by the Trustee ceasing to act to the successor Trustee.

 

		(c)	Trustee may authorize one or more parties to act on Trustee’s behalf to perform the ministerial
functions required of Trustee under this Instrument, including the transmittal and posting of any notices.

 

		34.	Vendor’s Lien. To the extent a vendor’s lien is retained in that certain deed
conveying the Mortgaged Property to Borrower and dated on or about the date of this Instrument, such vendor’s lien has been
assigned to Lender, the Note is primarily secured by said vendor’s lien, and this Instrument is additional security therefore.

 

		35.	No Fiduciary Duty. Lender owes no fiduciary or other special duty to Borrower.

 

		36.	Fixture Filing. This Instrument is also a fixture filing under the Uniform Commercial Code
of Texas.

 

		37.	Additional Provisions Regarding Assignment Of Rents. Section 3 will not be construed to
require a pro tanto or other reduction of the Indebtedness resulting from the assignment of Rents. If the provisions of
Section 3 and the preceding sentence cause the assignment of Rents in Section 3 to be deemed to be an assignment for additional
security only, Lender will be entitled to all rights, benefits and remedies attendant to such collateral assignment. The assignment
of Rents contained in Section 3 will terminate upon the release of this Instrument.

 

		38.	Loan Charges. Borrower and Lender intend at all times to comply with the laws of the State
of Texas governing the maximum rate or amount of interest payable on or in connection with the Indebtedness (or applicable United
States federal law to the extent that it permits Lender to contract for, charge, take, reserve or receive a greater amount of interest
than under Texas law). If the applicable law is ever judicially interpreted so as to render usurious any amount payable under the
Note, this Instrument or any other Loan Document, or contracted for, charged, taken, reserved or received with respect to the Indebtedness,
or if acceleration of the maturity of the Indebtedness, or if any prepayment by Borrower results in Borrower having paid any interest
in excess of that permitted by any applicable law, then Borrower and Lender expressly intend that all excess amounts collected
by Lender will be applied to reduce the unpaid principal balance of the Indebtedness (or, if the Indebtedness has been or would
thereby be paid in full, will be refunded to Borrower), and the provisions of the Note, this Instrument and the other Loan Documents
immediately will be deemed reformed and the amounts thereafter collectible under the Loan Documents reduced, without the necessity
of the execution of any new documents, so as to comply with any applicable law, but so as to permit the recovery of the fullest
amount otherwise payable under the Loan Documents. The right to accelerate the maturity of the Indebtedness does not include the
right to accelerate any interest which has not otherwise accrued on the date of such acceleration, and Lender does not intend to
collect any unearned interest in the event of acceleration. All sums paid or agreed to be paid to Lender for the use, forbearance
or detention of the Indebtedness will, to the extent permitted by any applicable law, be amortized, prorated, allocated and spread
throughout the full term of the Indebtedness until payment in full so that the rate or amount of interest on account of the Indebtedness
does not exceed the applicable usury ceiling. Notwithstanding any provision contained in the Note, this Instrument or any other
Loan Document that permits the compounding of interest, including any provision by which any accrued interest is added to the principal
amount of the Indebtedness, the total amount of interest that Borrower is obligated to pay and Lender is entitled to receive with
respect to the Indebtedness will not exceed the amount calculated on a simple (i.e., noncompounded) interest basis at the
maximum rate on principal amounts actually advanced to or for the account of Borrower, including all current and prior advances
and any advances made pursuant to the Instrument or any other Loan Document (such as for the payment of Impositions and similar
expenses or costs).

 

    	Texas
Multifamily Deed of Trust, Assignment of Rents,
Security Agreement and Fixture Filing
	Page 20

     

    

 

		39.	ENTIRE AGREEMENT. THIS INSTRUMENT, THE NOTE AND THE OTHER LOAN DOCUMENTS REPRESENT THE
FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS.
THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

 

		40.	WAIVER OF TRIAL BY JURY.

 

		(a)	BORROWER AND LENDER EACH COVENANTS AND AGREES NOT TO ELECT A TRIAL BY JURY WITH RESPECT TO ANY
ISSUE ARISING OUT OF THIS INSTRUMENT OR THE RELATIONSHIP BETWEEN THE PARTIES AS BORROWER AND LENDER THAT IS TRIABLE OF RIGHT BY
A JURY.

 

		(b)	BORROWER AND LENDER EACH WAIVES ANY RIGHT TO TRIAL BY JURY WITH RESPECT TO SUCH ISSUE TO THE
EXTENT THAT ANY SUCH RIGHT EXISTS NOW OR IN THE FUTURE. THIS WAIVER OF RIGHT TO TRIAL BY JURY IS SEPARATELY GIVEN BY EACH PARTY,
KNOWINGLY AND VOLUNTARILY WITH THE BENEFIT OF COMPETENT LEGAL COUNSEL.

 

		41.	Notice of Additional Provisions Regarding Insurance. Any terms to the contrary contained
in this Instrument notwithstanding, the following requirements are hereby imposed pursuant to Section 307.052 of the Texas Finance
Code:

 

		(a)	BORROWER IS REQUIRED TO: (i) KEEP THE MORTGAGED PROPERTY INSURED AGAINST DAMAGE IN AN AMOUNT
EQUAL TO THE INDEBTEDNESS, (ii) PURCHASE THE INSURANCE FROM AN INSURER THAT IS AUTHORIZED TO DO BUSINESS IN THE STATE OF TEXAS
OR AN ELIGIBLE SURPLUS LINES INSURER, AND (iii) NAME THE LENDER AS THE PERSON TO BE PAID UNDER THE POLICY IN THE EVENT OF LOSS.

 

		(b)	IF BORROWER FAILS TO COMPLY WITH SUBSECTION (a) ABOVE, LENDER MAY, BUT WILL NOT BE OBLIGATED
TO, OBTAIN COLLATERAL PROTECTION INSURANCE ON BEHALF OF BORROWER AT BORROWER’S EXPENSE.

 

    	Texas
Multifamily Deed of Trust, Assignment of Rents,
Security Agreement and Fixture Filing
	Page 21

     

    

 

		42.	Attached Riders. The following Riders are attached to this Instrument: NONE.

 

		43.	Attached Exhibits. The following Exhibits, if marked with an “X” in the space
provided, are attached to this Instrument:

 

	x	Exhibit A	Description of the Land (required)
	 	 	 
	 ̈	Exhibit B	Modifications to Instrument
	 	 	 
	 ̈	Exhibit C	Ground Lease Description (if applicable)

 

REMAINDER OF PAGE INTENTIONALLY LEFT
BLANK

 

    	Texas
Multifamily Deed of Trust, Assignment of Rents,
Security Agreement and Fixture Filing
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IN WITNESS WHEREOF, Borrower has signed
and delivered this Instrument or has caused this Instrument to be signed and delivered by its duly authorized representative.

 

	 	BR CARROLL PHILLIPS CREEK RANCH, LLC,

a Delaware limited liability company
	 	 	 
	 	By:	/s/ Jordan Ruddy
	 	 	Jordan Ruddy
	 	 	Authorized Signatory

 

STATE OF NEW YORK, New York County ss:

 

BEFORE ME, the undersigned,
a Notary Public in and for said County and State, on this day personally appeared Jordan Ruddy, Authorized Signatory of BR Carroll
Phillips Creek Ranch, LLC, a Delaware limited liability company, the limited liability company that executed the foregoing instrument,
known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that the same was the
act of the said limited liability company, and that he executed the same as the act of such limited liability company for the purposes
and consideration therein expressed and in the capacity therein stated.

 

GIVEN UNDER MY HAND
AND SEAL OF OFFICE this 20th day of October, 2015.

 

	 	/s/ Dale Pozzi
	 	Notary Public in and for New York County, New York

 

My Commission Expires: January 28, 2017

 

	 	[Notary Seal]

 

    	Texas
Multifamily Deed of Trust, Assignment of Rents,
Security Agreement and Fixture Filing
	Page 23

     

    

 

EXHIBIT A

 

DESCRIPTION OF THE LAND

 

(Sorrel at Phillips Creek Ranch)

 

Tract 1

 

BEING all of Lot 1, Block A of AVENUES OF PHILLIPS CREEK RANCH,
an Addition to the City of Frisco, Denton County, Texas, according to the Plat thereof recorded in Document Number 2014-379, Real
Property Records, Denton County, Texas.

 

TRACT 2: EASEMENT ESTATE

 

An easement and right to construct, reconstruct, operate, repair,
re-build, replace, relocate, alter, remove and perpetually maintain drainage facilities granted by PCR Land Company LLC to Villas
Phillips Creek Partners, LLC, by instrument dated 05/09/2012, filed 05/10/2012, cc# 2012-48976, Real Property Records of Denton
County, Texas, upon and across certain real property owned by Grantor and located in the City of Frisco, Denton County, Texas,
as described therein and incorporated herein by reference.

 

    	Texas
Multifamily Deed of Trust, Assignment of Rents,
Security Agreement and Fixture Filing
	Page A-1

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