Document:

ex1028ridgecrossmultifam

                                                                        EXHIBIT 10.28                                                    C&rti;ied to be a true and correct                                                   copy as the same appears in our                                                    files.   .  ()1   1  Prepared by, and after recording                         ' ~-4'­ return to:                                       BY-+-,,,.<--------'---r---  Jeremy M. McLean, Esquire  Troutman Sanders LLP  P.O. Box 1122  Richmond, VA23218   Source ofTitle: Deed Book LR201562, Page 17607                             MULTIFAMILY MORTGAGE,                             ASSIGNMENT OF RENTS                          AND SECURITY AGREEMENT                                    ALABAMA                                  (Revised 3-1-2014)  

 

                                             Freddie Mac Loan No. 504021389                                                             Ridge Crossings                         MULTIFAMILY MORTGAGE,                          ASSIGNMENT OF RENTS                        AND SECURITY AGREEMENT                                  ALABAMA                               (Revised 3-1-2014)   THIS MULTIFAMILY    MORTGAGE,   ASSIGNMENT   OF  RENTS  AND   SECURITY  AGREEMENT   ("Instrument") is made as of the 31st day of July, 2018, between STAR  RIDGE CROSSINGS, LLC,  a limited liability company organized and existing under the laws  of Delaware, whose address is c/o Steadfast Companies, 18100 Von Karman Avenue, Suite 500,  Irvine, California 92612, as mortgagor ("Borrower"), and PNC BANK, NATIONAL  ASSOCIATION,  a national banking association, whose address is 26901 Agoura Road, Suite  200, Calabasas Hills, California 91301, Attention: Loan Servicing Manager, as mortgagee  ("Lender"). Borrower's organizational identification number, if applicable, is 5743533.                                  RECITAL  Borrower is indebted to Lender in the principal amount of $58, I 00,000.00, as evidenced by  Borrower's Multifamily Note payable to Lender dated as of the date of this Instrument, and  maturing on August I, 2028 ("Maturity Date").                               AGREEMENT  TO SECURE TO LENDER the repayment of the Indebtedness, 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 mortgages,  warrants, grants, bargains, sells, conveys and assigns to Lender and Lender's successors and  assigns, with power of sale, the Mortgaged Property, including ·the Land located in Jefferson  County, State of Alabama, and described in Exhibit A attached to this Instrument. To have and to  hold the Mortgaged Property unto Lender and Lender's successors and assigns, forever.  Borrower represents and warrants 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.    Alabama  Multifamily Mortgage, Assignment of Rents and Security Agreement  

 

                          UNIFORM COVENANTS                                (Revised 5-5-2017)   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.    Alabama   Multifamily Mortgage, Assignment of Rents and Security Agreement Pagel  

 

      "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.   Alabama  Multifamily Mortgage, Assignment of Rents and Security Agreement       Page3  

 

     "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.             G)   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.              (I)  All Imposition Reserve Deposits.   Alabama  Multifamily Mortgage, Assignment of Rents and Security Agreement Page4  

 

            (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 or Notes (including any Amended and Restated        Note(s), Consolidated, Amended and Restated Note(s), or Extended and Restated        Note(s)) 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(s) 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).   Alabama  Multifamily Mortgage, Assignment of Rents and Security Agreement       Pages  

 

      (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.         (t)   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, maybe 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   Alabama  Multifamily Mortgage, Assignment of Rents and Security Agreement       Page 6  

 

                      place of business); or (iii) add to or change any location at which any of the                        Mortgaged Property is stored, held or located.                    (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               Alabama              Multifamily Mortgage, Assignment of Rents and Security Agreement Page7  L!  __   

 

                retained by Borrower free and clear of, and released from, Lender's rights                  with respect to Rents under this Instrument.            (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   Alabama  Multifamily Mortgage, Assignment of Rents and Security Agreement Pages  

 

                  such receiver, including the appointment of a receiver ex parte if permitted                    by applicable law.               (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.         (±)   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.   Alabama  Multifamily Mortgage, Assignment of Rents and Security Agreement       Page9  

 

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    Alabama   Multifamily Mortgage, Assignment of Rents and Security Agreement       Page 10  

 

                property sustained by any Person or Persons in or  about the Mortgaged                  Property.            (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.        (±)   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   Alabama  Multifamily Mortgage, Assignment of Rents and Security Agreement Page 11  

 

                  obligation of the former tenant shareholder to pay any unpaid portion of                    such assessments.  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.    Alabama  Multifamily Mortgage, Assignment of Rents and Security Agreement       Page 12  

 

     (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.                                    ·       (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.    Alabama  Multifamily Mortgage, Assignment of Rents and Security Agreement Page 13  

 

     (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.       (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   Alabama  Multifamily Mortgage, Assignment of Rents and Security Agreement Page 14  

 

            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.   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,   Alabama  Multifamily Mortgage, Assignment of Rents and Security Agreement       Page 15  

 

     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.   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 one or more other            remedies permitted by applicable 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 and costs of             documentary evidence, abstracts and title reports.        (b)   If Lender invokes the power of sale, Lender will mail a copy of a notice of sale to             Borrower in the manner provided in Section 11.03 of the Loan Agreement.             Lender will give notice by publication once a week for three consecutive weeks of             the time, place and terms of such sale, together with a description of the             Mortgaged Property to be sold, in a newspaper published in the county or counties             in which the Land to be sold is located, and thereupon will sell the Mortgaged             Property (or  such part or parts thereof as the Lender may from time to time elect             to sell) to the highest bidder at public auction at the front door of the County             Courthouse of the county in which the Land to be sold, or a substantial and             material part thereof is located. The sale will be held between the hours of 11 :00             a.m. and 4:00 p.m. on the day designated for the exercise of the power of sale             hereunder. Lender may sell the Mortgaged Property in one or more parcels and in             such order as Lender may determine. Lender may postpone sale of all or any             parcel of the Mortgaged Property by public announcement at the time and place             of any previously scheduled sale and by re-publication of notice announcing the             new sale date. Lender or Lender's designee may purchase the Mortgaged Property             at any sale.       (c)   Lender will deliver to the purchaser Lender's deed conveying the Mortgaged             Property so sold without any covenant or warranty, express or implied. The             recitals in Lender's deed will be prima facie evidence of the truth of the             statements made in those recitals. Borrower covenants and agrees that the             proceeds of any sale will be applied in the following order or as otherwise             prescribed by law: (i) to all costs and expenses of the sale, including Attorneys'             Fees and Costs; (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 it, after deducting therefrom the costs of ascertaining their identity.  32.  Defeasance. Upon payment of the Indebtedness, this Instrument will become null and       void upon the filing by the Lender of a written instrument of termination. Borrower will       pay Lender's reasonable costs incurred in releasing this Instrument.    Alabama  Multifamily Mortgage, Assignment of Rents and Security Agreement Page 16  

 

33.   Waiver of Exemptions. Borrower waives all rights of exemptions as to personal        property. If Borrower is an individual, Borrower represents and warrants to Lender that        the Mortgaged Property is not the homestead of Borrower or Borrower's spouse.   34.   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  WAIYER                 OF RIGHT   TO  TRIAL  BY  JURY  IS SEPARATELY    GIVEN  BY  EACH              PARTY,  KNOWINGLY     AND  VOLUNTARILY    WITH   THE  BENEFIT  OF              COMPETENT LEGAL COUNSEL.   35.   Attached Riders. The following Riders are attached to this Instrument:         [}[]    Rider to Multifamily Security Instrument - Trade Names   36.   Attached Exhibits. The following Exhibits, if marked with an "X" in the space provided,        are attached to this Instrument:        CK]     Exhibit A    Description of the Land (required)        D       Exhibit B    Modifications to Instrument        D       Exhibit C    Ground Lease Description (if applicable)   IN WITNESS WHEREOF, Borrower has signed and delivered this Instrument under seal or has  caused this Instrument to be signed and delivered under seal by its duly authorized  representative. Borrower intends that this Instrument will be deemed to be signed and delivered  as a sealed instrument.               REMAINDER OF PAGE INTENTIONALLY LEFT BLANK    Alabama  Multifamily Mortgage, Assignment of Rents and Security Agreement       Page 17  

 

                                   BORROWER:                                      STAR RIDGE CROSSINGS, LLC, a Delaware                                        limited liability company                                     By: Steadfast Apartment Advisor, LLC, a                                         Delaware limited liability company, its                                         Manager                                          By:                                             Ella S. Neyland'­                                            President    A notary public or other officer completing this   certificate verifies only the identity of the   individual who signed the document to which this   certificate is attached, and not the truthfulness,   accuracy, or validity of that document.     STATE OF  California    ---'O'--'r-'-an_g"e'---------County ss:        I, the undersigned, a Notary Public in and for said County in said State, hereby certify   that Ella S. Neyland, whose name as President of Steadfast Apartment Advisor, LLC, a Delaware   limited liability company, acting as manager of ST AR Ridge Crossings, LLC, a Delaware   limited liability company, is signed to the foregoing instrument, and who  is known to me,   acknowledged before me on this day, that being informed of the contents of said instrument, she   as such President and with full authority, executed the same voluntarily for and as the act of said   Steadfast Apartment Advisor, LLC, acting in its capacity as manager of said ST AR Ridge   Crossings, LLC.           Given under my hand this the -11th.. day of~Jul=y___ ~,  2018.   (SEAL)     My commission expires: 10/04/2018                   LAURIE SANDERS I                COMM. #2084867 z                Notary Public - California ~                   Orange County -             M Comm. Expires Oct. 4, 2018    Alabama   Multifamily Mortgage, Assignment of Rents and Security Agreement    Page S-1  

 

             CALIFORNIA ALL PURPOSE ACKNOWLEDGMENT   A notary public or other officer completing this certificate verifies only the identity  of the individual who signed the document to which this certificate is attached, and  not the truthfulness, accuracy, or validity of that document.   State of CALIFORNIA     )                           ss  County of Orange        )   On July 17, 2018, before me, Laurie Sanders, Notary Public, personally appeared Ella S.  Neyland, who proved to me on the basis of satisfactory evidence to be the person whose  name is subscribed to the within instrument and acknowledged to me that she executed  the same in her authorized capacity, and that by her signature on the instrument the  person or the entity upon behalf of which the person acted, executed the instrument.         I certify under PENALTY OF PERJURY under the laws of the State of California  that the foregoing paragraph is true and correct.                                             WITNESS my hand and official seal.                  LAURIE SANDERS [                 COMM. #2084867 z                Notary Public - California ~                   Orange County -              M Comm. Expires Oct. 4, 2018  

 

             RIDER TO MULTIFAMILY SECURITY INSTRUMENT                                TRADE NAMES                                (Revised 3-1-2014)   The following changes are made to the Instrument which precedes this Rider:    A.   Subsection (o)  of the definition of Mortgaged Property in Section 1 is restated as follows:               (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; provided however, that the                   names- "SIR",  "STAR",  and "Steadfast" and/or associated trademark                   rights  are not assigned to Lender, subject to Section 6.30 of the Loan                   Agreement.     Rider to Multifamily Security Instrumeut   Trade Names  

 

                                  EXHIBIT A                             DESCRIPTION OF THE LAND                                   Ridge Crossings  A parcel ofland situated in the NE 1/4 of the NW 1/4 and the SW 1/4 of the NE 1/4 of Section  27, and in the NE 1/4 and the SE 1/4 of the NW 1/4 of Section 27, Township 19 South, Range 3  West, Jefferson County, Alabama, Bessemer Division and being more particularly described as  follows:  Begin at a point on the North line of said Section 27, and at the intersection of the West right of  way line of Scenic View Drive, said point being 1375.73 feet West of the NE corner of said   Section 27, Township 19 South, Range 3 West, as measured along said section line on a bearing  of South 88 degrees, 54 minutes, 54 seconds East, said point also being 1266.93 feet East of the  NW corner of the NW 1/4 of the NE 1/4 of said Section 27 as measured along said section line on  a bearing of South 88 degrees, 54 minutes, 54 seconds East, said point being on a curve to the left,  said curve subtending a central angle of 56 degrees, 52 minutes, 19 seconds measure (56  degrees  32 minutes 47 seconds map) a radius of 197.55 feet and a chord bearing of South 35 degrees, 03  minutes, 19 seconds East; thence run Southeasterly along the arc of said curve and along said   Scenic View Drive's West right of way line for 196.09 measure (194.97 feet map) feet to the end  of said curve; thence at tangent to said curve run South 63 degrees, 29 minutes, 28 seconds East   along said right of way line for 109 .65 feet to the beginning of a curve to the right, said curve   subtending a central angle of 28 degrees, 30 minutes, 17 seconds, a radius of 161.84 feet and a   chord bearing of South 49 degrees, 14 minutes, 19 seconds East; thence run Southeasterly along  the arc of said curve and along said right of way line for 80.52 feet to the end of said curve;  thence at tangent to said curve run South 34 degrees, 59 minutes, 11 seconds East along said right   of way line for 50.00 feet to the beginning of a curve to the left, said curve subtending a central   angle of 19 degrees, 2 I minutes, 43 seconds, a radius of 183.86 feet and a chord bearing of South  44 degrees, 40 minutes, 02 seconds East; thence run Southeasterly along the arc of said curve and   along said right of way line for 62.13 feet to the end of said curve; thence at tangent to said curve  run South 54 degrees, 20 minutes, 54 seconds East along said right of way line for 78.51 feet to  the beginning of a curve to the right, said curve subtending a central angle of 16 degrees, 33  minutes, 33 seconds, a radius of 196.01 feet and a chord bearing of South 46 degrees, 04 minutes,   08 seconds East; thence run Southeasterly along the arc of said curve and along said right of way   line for 56.65 feet to the end of said curve; thence at tangent to said curve run South 37 degrees,   47 minutes, 21 seconds East along said right of way line for 20.00 feet to the beginning of a curve   to the left, said curve subtending a central angle of 30 degrees, 51 minutes, 20 seconds map and   measure a radius of 250.00 feet measure (31 degrees 05 minutes 47 seconds map) and a chord   bearing of South 53 degrees, 13 minutes, 0 I seconds East; thence run Southeasterly along the arc   of said curve and along said right of way line for 134.63 feet measure (135.68 feet map) to the end   of said curve, said point being on the Northerly right of way line of Alabama Highway Number   150, said point being on a curve to the right, said curve subtending a central angle of 00 degrees,   33 minutes, 10 seconds, a radius of 22,858.31 feet and a chord bearing of South 52 degrees, 50   minutes, 03 seconds West; thence run Southwesterly along the arc of said curve and along said   Highway 150 right of way line for 220.53 feet to the end of said curve; thence at tangent to said   curve run South 53 degrees, 06 minutes, 38 seconds West along said Highway 150 right of way   line for 514.38 feet; thence run South 53 degrees, 21 minutes, 07 seconds West along said right   of way line for 548.18 feet to the beginning of a curve to the right, said curve subtending a   central angle of 3 degrees, 26 minutes, 26 seconds, a radius of 4523. 76 feet and a chord bearing   of South 55 degrees, 04 minutes, 21 seconds West; thence run Southwesterly along the arc of    Alabama   Multifamily Mortgage, Assignment of Rents and Security Agreement       Page A-1  

 

said curve and along said right of way line for 271.65 feet to the end of said curve; thence run  South 72 degrees, 26 minutes, 22 seconds West along said Highway 150 right of way line for  101.59 feet; thence run South 55 degrees, 18 minutes, 17 seconds West along said right of way  line for 144.28 feet; thence run South 62 degrees, 00 minutes, 13 seconds West along said right  of way line for 14 7. 74  feet to the most Southerly corner of Tree Crossings Phase One; thence  leaving said right of way line run North 27 degrees, 12 minutes, 29 seconds West for 179.83 feet;  thence run North 68 degrees, 00 minutes, 41 seconds West for 760.03 feet to the common corner  of Phase Two and Phase Three, Tree Crossings; thence run South 60 degrees, 31 minutes, 41  seconds West measure South 60 degrees 30 minutes 00 seconds West (map) for 638.50 feet;  thence run North 43 degrees, 45 minutes, 08 seconds West measure (North 43 degrees 51  minutes 00 Seconds West) for 300.38 feet measure (300.00 feet map) to a 3" capped iron at the  SW corner of the NE 1/4 of the NW 1/4 of said Section 27, Township 19 South, Range 3 West;  thence run North O degrees, 05 minutes, 18 seconds West along the West line of said 1/4-1/4 for                                                     1 1326.03 feet to a 3" capped iron at the NW comer of said NE /4 of the NW 1/4 of Section 27;  thence run South 89 degrees, 02 minutes, 07 seconds East along the North line of said 1/4-1/4 for  1319.80 feet to a 3" capped iron at the NE corner of said 1/4-1/4 and the NW comer of the NW  1/4 of the NE 1/4 of said Section 27; thence run South 88 degrees, 54 minutes, 54 seconds East  along said 1/4-1/4 for 1266.93 feet to the point of beginning.    Alabama  Multifamily Mortgage, Assignment of Rents and Security Agreement       PageA-2  

 

Prepared by, and after recording  return to:   Jeremy M. McLean, Esquire  Troutman Sanders LLP  Post Office Box 1122  Richmond, Virginia 23218-1122                                                      Freddie Mac Loan No. 504021389                                                                   Ridge Crossings                      ASSIGNMENT OF SECURITY INSTRUMENT                                  (Revised 12-19-2014)   FOR VALUABLE CONSIDERATION, PNC BANK, NATIONAL ASSOCIATION, a national  banking association ("Assignor"), having its principal place of business at 26901 Agoura Road,  Suite 200, Calabasas Hills, California 91301, Attention: Loan Servicing Manager, hereby  assigns, grants, sells and transfers to the FEDERAL HOME   LOAN    MORTGAGE  CORPORATION,     a corporation organized and existing under the laws of the United States  ("Assignee"), having its principal place of business at 8200 Jones Branch Drive, McLean, Virginia  22102, and Assignee's successors, transferees and assigns forever, all of the right, title and interest  of Assignor in and to the Multifamily Mortgage, Assignment of Rents and Security Agreement,  dated as of July 31, 2018, entered into by STAR RIDGE CROSSINGS, LLC, a Delaware  limited liability company ("Borrower") for the benefit of Assignor, securing an indebtedness of  Borrower to Assignor in the principal amount of $58,100,000.00 recorded in the land records of  Jefferson County, Alabama prior to this Assignment in Mortgage Book Page ~~­ ("Instrument"), which indebtedness is secured by the property described in Exhibit A attached to  this Assignment and incorporated into it by this reference.   Together with the Note or other obligation described in the Instrument and all obligations secured  by the Instrument now or in the future.   IN WITNESS   WHEREOF,   Assignor has executed this Assignment as of July 31, 2018, to be  effective as of the effective date of the Instrument.    Assignment of Security Instrument                                         Page 1  

 

                                 ASSIGNOR:                                    PNC BANK, NATIONAL ASSOCIATION, a                                      national baoking association    STATE OF ______,  _______ County ss:         I, the undersigned, a Notary Public in and for said County in said State, hereby certify  that Kelli A. Tyler, whose name as President of PNC Baok, National Association, a natio  baoking association, is signed to the foregoing instrument, and who is known  acknowledged before me on this day, that being informed of the contents of said · ent, she  as such President and with full authority, executed the same voluntarily for as the act of said  PNC Baok, National Association.                                                     Notary Public    Assignment of Security Instrument                                Page S-1  

 

CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT                                      CIVIL CODE§ 1189     A notary public or other officer completing this certificate verifies only the identity of the individual who signed the    document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.   State of ~alifornia C\ Jdl~n                )  County or       c...)(U'\ ~ D               )                          N            ()      .  On   Jul\,/     I~,  ru>ll?  before me,   Qa1filngr1v'~J                 o+vry      rub/1e)              I Date                  kel Ii       'Ae .ln~r::.,mre,,  'l!J9.Jitle of the Officer  personally appeared --------------'----=-----------l-ll'---'-rt:,Y____________              _                                                   Name(s) of Signer(s)   who  proved to me  on the basis of satisfactory evidence to be the person(sl" whose name{laj--is/ai.,­ subsclibed to the within instrument and acknowledged to me that be1she/ttle1 executed the same in  ~er/t!.eifauthorized capacity[~and    that by bi8ilier/tpelrsignature.W-On the instrument the person{s),  or the entity upon behalf of which the person{s) acted, executed the instrument.                                               I certify under PENALTY OF PERJURY under the laws                                               of the State of California that the foregoing paragraph                                               is true and co1Tect.       ~eeooeoeneeosr      •• :..  ~   No~!:YT~~~i~~~:~nia r      ~   ., ·      San Diego County ~      z        ·  Commission# 2196629                My Comm. Expires May 31, 2021                   Signature of Notary Public               Place Notary Seal Above     Though this section is optional, completing this information can deter alteration of the document or                    fraudulent reattachment of this form to an unintended document.   Description of Attached Don\URent        . • f C'~ A. • ~ Insh,u         Title or Type of Document: fji»~ Y'~Dt::<XW Y"I              ument  Oat~: ________   Number of Pages:           Signer{s) Other Than Named Abov  : _____________   Capacity{ies) Claimed by Signer{s)  Signer's Name:_·___________               _    · Signer's Name: _____________   D Corporate Officer - Title{s): _______         D Corporate Officer - Title{s): _______   D Partner - D Limited  D General                D Partner - D  Limited  D General  D Individual     D Attorney in Fact             D Individual     D Attorney in Fact  D Trustee        D Guardian or Conservator      D Trustee        D Guardian or Conservator  D Oiher: ______________                         D Other:----------'---- Signer Is Representing: __________              Signer Is Representing: __________    ©2014 National Nota,y Association· www.NationalNotary.org • 1-800-US NOTARY {1-800-876-6827) Item #5907  

 

                                 EXHIBIT A                          DESCRIPTION OF THE PROPERTY                                   Ridge Crossings   A parcel of land situated in the NE 1/4 of the NW 1/4 and the SW 1/4 of the NE 1/4 of Section  27, and in the NE 1/4 and the SE 1/4 of the NW 1/4 of Section 27, Township 19 South, Range 3  West, Jefferson County, Alabama, Bessemer Division and being more particularly described as  follows:  Begin at a point on the North line of said Section 27, and at the intersection of the West right of  way line of Scenic View Drive, said point being 1375.73 feet West of the NE corner of said  Section 27, Township 19 South, Range 3 West, as measured along said section line on a bearing  of South 88 degrees, 54 minutes, 54 seconds East, said point also being 1266.93 feet East of the  NW corner of the NW 1/4 of the NE 1/4 of said Section 27 as measured along said section line on  a bearing of South 88 degrees, 54 minutes, 54 seconds East, said point being on a curve to the left,  said curve subtending a central angle of 56 degrees, 52 minutes, 19 seconds measure (56 degrees  32 minutes 47 seconds map) a radius of 197.55 feet and a chord bearing of South 35 degrees, 03  minutes, 19 seconds East; thence run Southeasterly along the arc of said curve and along said  Scenic View Drive's West right of way line for 196.09 measure (194.97 feet map) feet to the end  of said curve; thence at tangent to said curve run South 63 degrees, 29 minutes, 28 seconds East  along said right of way line for 109.65 feet to the beginning of a curve to the right, said curve  subtending a central angle of 28 degrees, 30 minutes, 17 seconds, a radius of 161.84 feet and a  chord bearing of South 49 degrees, 14 minutes, 19 seconds East; thence run Southeasterly along  the arc of said curve and along said right of way line for 80.52 feet to the end of said curve;  thence at tangent to said curve run South 34 degrees, 59 minutes, 11 seconds East along said right  of way line for 50.00 feet to the beginning of a curve to the left, said curve subtending a central  angle of 19 degrees, 2 I minutes, 43 seconds, a radius of 183.86 feet and a chord bearing of South  44 degrees, 40 minutes, 02 seconds East; thence run Southeasterly along the arc of said curve and  along said right of way line for 62.13 feet to the end of said curve; thence at tangent to said curve  run South 54 degrees, 20 minutes, 54 seconds East along said right of way line for 78.51 feet to  the beginning of a curve to the right, said curve subtending a central  angle of 16 degrees, 33  minutes, 33 seconds, a radius of 196.01 feet and a chord bearing of South 46 degrees, 04 minutes,  08 seconds East; thence run Southeasterly along the arc of said curve and along said right of way  line for 56.65 feet to the end of said curve; thence at tangent to said curve run South 37 degrees,  47 minutes, 21 seconds East along said right of way line for 20.00 feet to the beginning of a curve  to the left, said curve subtending a central angle of 30 degrees, 51 minutes, 20 seconds map and  measure a radius of 250.00 feet measure (31 degrees 05 minutes 47 seconds map) and a chord  bearing of South 53 degrees, 13 minutes, 01 seconds East; thence run Southeasterly along the arc  of said curve and along said right of way line for 134.63 feet measure (135.68 feet map) to the end  of said curve, said point being on the Northerly right of way line of Alabama Highway Number  150, said point being on a curve to the right, said curve subtending a central angle of 00 degrees,  33 minutes, 10 seconds, a radius of 22,858.31 feet and a chord bearing of South 52 degrees, 50  minutes, 03 seconds West; thence run Southwesterly along the arc of said curve and along said  Highway 150 right of way line for 220.53 feet to the end of said curve; thence at tangent to said  curve run South 53 degrees, 06 minutes, 38 seconds West along said Highway 150 right of way  line for 514.38 feet; thence run South 53 degrees, 21 minutes, 07 seconds West along said right  of way line for 548.18 feet to the beginning of a curve to the right, said curve subtending a  central angle of 3 degrees, 26 minutes, 26 seconds, a radius of 4523. 76 feet and a chord bearing  of South 55 degrees, 04 minutes, 21 seconds West; thence run Southwesterly along the arc of  said curve and along said right of way line for 271.65 feet to the end of said curve; thence run  South 72 degrees, 26 minutes, 22 seconds West along said Highway 150 right of way line for   Assignment of Security Instrument                                      PageA-1  

 

101.59 feet; thence run South 55 degrees, 18 minutes, 17 seconds West along said right of way  line for 144.28 feet; thence run South 62 degrees, 00 minutes, 13 seconds West along said right  of way line for 147.74 feet to the most Southerly corner of Tree Crossings Phase One; thence  leaving said right of way line run North 27 degrees, 12 minutes, 29 seconds West for 179.83 feet;  thence run North 68 degrees, 00 minutes, 41 seconds West for 760.03 feet to the common corner  of Phase Two and Phase Three, Tree Crossings; thence run South 60 degrees, 31 minutes, 41  seconds West measure South 60 degrees 30 minutes 00 seconds West (map) for 638.50 feet;  thence run North 43 degrees, 45 minutes, 08 seconds West measure (North 43 degrees 51  minutes 00 Seconds West) for 300.38 feet measure (300.00 feet map) to a 3" capped iron at the  SW corner of the NE 1/4 of the NW 1/4 of said Section 27, Township 19 South, Range 3 West;  thence run North O degrees, 05 minutes, 18 seconds West along the West line of said 1/4-1/4 for                                                     1 1326.03 feet to a 3" capped iron at the NW corner of said NE /4 of the NW 1/4 of Section 27;  thence run Smith 89 degrees, 02 minutes, 07 seconds East along the North line of said 1/4-1/4 for  1319.80 feet to a 3" capped iron at the NE corner of said 1/4-1/4 and the NW corner of the NW  1/4 of the NE 1/4 of said Section 27; thence run South 88 degrees, 54 minutes, 54 seconds East  along said 1/4-1/4 for 1266.93 feet to the point of beginning.    Assignment of Secnrity Instrument                                      Page A-2ex1029ridgecrossassgnmto

                                                                        EXHIBIT 10.29                                                 Freddie Mac Loan Number: 504021389                                                     Property Name: Ridge Crossings                ASSIGNMENT OF l.WANAGEMENT AGREEMENT AND                    SUBORDINATION OF MANAGEMENT FEES                                 (Revised 7-12-2016)   THIS ASSIGNMENT    OF  MANAGEMENT     AGREEMENT     AND  SUBORDINATION     OF  MANAGEMENT FEES     ("Assignment") is made effective as of the 31st day of July, 2018, by  and among  STAR  RIDGE   CROSSINGS,   LLC,  a  Delaware limited liability company  ("Borrower"), PNC BANK,  NATIONAL   ASSOCIATION,    a national banking association  ("Lender"), and STEADFAST MANAGEMENT CO!VIPANY,      INC., a California corporation  ("Property Manager").                                    RECITALS:   A.    Borrower has requested that Lender make a loan to Borrower ("Loan"). The Loan will be        evidenced by a Multifamily Note from Borrower to Lender effective as of the date of this        Assignment ("Note"). The Note is secured by, among other things, a Multifamily Loan        and Security Agreement ("Loan Agreement") and a Multifamily Mortgage, Deed of        Trust, or Deed to Secure Debt ("Security Instrument"), dated as of the date of this        Assignment, which grants Lender a lien on the property encumbered by the Security        Instrument ("Mortgaged Property"). The Note, the Loan Agreement, the Security        Instrument, this Assignment and any of the other documents evidencing the Loan are        collectively referred to as the "Loan Documents". Other capitalized terms used but not        defined in this Assignment will have the meanings given to those terms in the Loan        Agreement.  B.    Pursuant to a Management Agreement between Borrower and Property Manager        ("Management Agreement") (a true and correct copy of which is attached as Exhibit B),        Borrower employed Property Manager exclusively to lease, operate and manage the        Mortgaged Property, and Property Manager is entitled to certain management fees        ("Management Fees") pursuant to the Management Agreement.  C.    Lender requires as a condition to the making of the Loan that Borrower assign the        Management Agreement and that Property Manager subordinate its interest in the        Management Fees in lien and payment to the Loan as set forth below.  For good and valuable consideration the parties agree as follows:  1.    Assignment of Management Agreement. As additional collateral security for the Loan,        Borrower conditionally transfers, sets over, and assigns to Lender all of Borrower's right,        title and interest in and to the Management Agreement and all extensions and renewals.        This transfer and assignment will automatically become a present, unconditional        assignment, at Lender's option, upon a default by Borrower under the Note, the Loan        Agreement, the Security Instrument or any of the other Loan Documents (each,  an        "Event of Default"), and the failure of Borrower to cure such Event of Default within        any applicable grace period.  2.    Subordination of Management  Fees. The Management Fees and all rights and        privileges of Property Manager to the Management Fees are and will at all times continue        to be subject and unconditionally subordinate in all respects in lien and payment to the   Assignment of Management Agreement and  Subordination ofM,magement Fees  

 

      lien and payment of the Loan Agreement, the Security Instrument, the Note, and the other        Loan Documents, and  to any renewals, extensions, modifications, assignments,        replacements, or consolidations of the Loan Documents and the rights, privileges, and        powers of Lender under the Note, the Loan Agreement, the Security Instrument, or any of        the other Loan Documents.  3.    Estoppel. Property Manager and Borrower represent and warrant that all of the following        are true as of the date of this Assignment:         (a)   The Management Agreement is in full force and effect and has not been modified,              amended or assigned other than pursuant to this Assignment.         (b)   Neither Property Manager nor Borrower is in default under any of the terms,              covenants or provisions of the Management Agreement and Property Manager              knows of no event which, but for the passage of time or the giving of notice or              both, would constitute an event of default under the Management Agreement.         (c)   Neither Property Manager nor Borrower has commenced any action or given or              received any notice for the purpose of terminating the Management Agreement.         (d)   The Management Fees and all other sums due and payable to the Property              Manager under the Management Agreement have been paid in full.   4.    Agreement by Borrower and Property Manager. Borrower and Property Manager        agree that ifthere is an Event of Default by Borrower ( continuing beyond any applicable        grace period) under the Note, the Loan Agreement, the Security Instrument or any of the        other Loan Documents during the term of this Assignment or upon the occurrence of any        event which would entitle Lender to terminate the Management Agreement in accordance        with the terms of the Loan Documents, Lender may terminate the Management        Agreement witl1out payment of any cancellation fee or penalty and require Property        Manager to transfer its responsibility for the management of the Mortgaged Property to a        management company selected by Lender in Lender's sole discretion, effective as of the        date set forth in Lender's notice to Property Manager. Following any such termination,        Property Manager agrees to apply all rents, security deposits, issues, proceeds and profits        of the Mortgaged Property in accordance with Lender's written directions to Property        Manager.  5.    Lender's Right to Replace Property Manager. If Lender, in Lender's reasonable        discretion, at any time during the term of this Assignment, determines that the Mortgaged        Property is not being managed in accordance with generally accepted management        practices for properties similar to the Mortgaged Property, Lender will deliver written        notice to Borrower and Property Manager, which notice will specify with particularity the        grounds for Lender's determination. If Lender reasonably determines that the conditions        specified in Lender's notice are not remedied to Lender's reasonable satisfaction by        Borrower or Property Manager within 30 days from receipt of such notice or that        Borrower or Property Manager have failed to diligently undertake correcting such        conditions within such 30-day period, Lender may direct Borrower to terminate Property        Manager as manager of the Mortgaged Property and terminate the Management        Agreement without payment of any cancellation fee or penalty and to replace Property        Manager with a management company acceptable to Lender in Lender's sole discretion        pursuant to a management agreement acceptable to Lender in Lender's sole discretion.    Assignment of Management Agreement and  Subordination ofl\Ianagemcnt Fees                                        Pagc2  

 

6.    Receipt of Management Fees. Property Manager will not be obligated to return or        refund to Lender any Management Fees or other fee, commission or other amount        received by Property Manager prior to the occurrence of the Event of Default, and to        which Property Manager was entitled under the Management Agreement. If the Property        Manager receives any Management Fees after it has received notice of an Event of        Default, Property Manager agrees that such Management Fees will be received and held        in trust for Lender, to be applied by Lender to amounts due under the Loan Documents.   7.    Consent and Agreement by Property Manager. Property Manager acknowledges and        consents to this Assignment and agrees that Property Manager will act in conformity with        the provisions of this Assignment and Lender's rights under this Assignment or otherwise        related to the Management Agreement. If the responsibility for the management of the        Mortgaged Property is transferred from Property Manager in accordance witl1 the        provisions of this Assignment, then Property Manager will fully cooperate in transferring        its responsibility to a new management company and complete such transfer no later than        30 days from the date the Management Agreement is terminated.  Further, Property        Manager agrees as follows:         ( a)  It will not contest or impede the exercise by Lender of any right Lender has under              or in connection with this Assignment.         (b)   It will give at least 30 days prior written notice to Lender of its intention to              terminate the Management Agreement or otherwise discontinue its management              of the Mortgaged Property, in the manner provided for in this Assignment.         (c)   It will not amend any of the provisions or terms of the Management Agreement              without the prior consent of Lender.   8.    Termination. When the Loan is paid in full and the Security Instrument is released or        assigned of record, this Assignment and all of Lender's right, title and interest hereunder        with respect to the Management Agreement will terminate.   9.    Notices.         (a)   All notices under or concerning this Assignment ("Notice") will be in writing.              Each Notice will be deemed given on the earliest to occur of: (i) the date when              the Notice is received by the addressee, (ii) the first Business Day after the Notice              is delivered to a recognized overnight courier service, with arrangements made for              payment of charges for next Business Day delivery, or (iii) the third Business Day              after the Notice is deposited in the United States mail with postage prepaid,              certified mail, return receipt requested. Addresses for Notice are as follows:                Ifto Lender:        PNC Bank, National Association                                   26901 Agoura Road, Suite 200                                    Calabasas Hills, California 91301                                   Attention: Loan Servicing Manager    Assignment of Management Agreement and  Subordination of Management Fees                                          Page 3  

 

            If to Borrower:      ST AR Ridge Crossings, LLC                                   c/o Steadfast Companies                                   18100 Von Karman Avenue, Suite 500                                   Irvine, California 92612                                   Attention - General Counsel: Ana Marie del Rio               If to Property       Steadfast Management Company, Inc.              Manager:             c/o Steadfast Companies                                   18100 Von Karman Avenue, Suite 500                                   Irvine, California 92612                                   Attention - General Counsel: Ana Marie de! Rio         (b)  Any party to this Assignment may change the address to which Notices intended             for it are to be directed by means of Notice given to the other parties in              accordance with this Section 9. Each party agrees that it will not refuse or reject              delivery of any Notice given in accordance with this Section 9, that it will              acknowledge, in writing, the receipt of any Notice upon request by the other party              and that any Notice rejected or refused by it will be deemed for purposes of this              Section 9 to have been received by the rejecting party on the date so refused or             rejected, as conclusively established by the records of the U.S. Postal Service or              the courier service.  10.   Governing Law; Consent to Jurisdiction and Venue.         (a)  This Assignment will be construed in accordance with and governed by the laws              of the Property Jurisdiction.        (b)   Borrower and Property Manager agree that any controversy arising under or in             relation to this Assignment may be litigated in the Property Jurisdiction. The state              and federal courts and authorities with jurisdiction in the Property Jurisdiction              will have jurisdiction over all controversies that may arise under or in relation to             this Assignment. Borrower and Property Manager irrevocably consent to service,             jurisdiction and venue of such courts for any such litigation and waive any other              venue to which it might be entitled by virtue of domicile, habitual residence or              otherwise. However, nothing in this Section 10 is intended to limit Lender's right              to bring any suit, action or proceeding relating to matters under this Assignment              in any court of any other jurisdiction.  11.   Captions, Cross References and Exhibits. The captions assigned to provisions of this        Assignment are for convenience only and will be disregarded in construing this        Assignment. Any reference in this Assignment to an "Exhibit" or a "Section," unless        otherwise explicitly provided, will be construed as referring, respectively, to an Exhibit        attached to this Assignment or to a section of this Assignment. All Exhibits attached to or        referred to in this Assignment are incorporated by reference into this Assignment.  12.   Number and Gender. Use of the singular in this Assignment includes the plural, use of        the plural includes the sin!,'lllar, and use of one gender includes all other genders, as the        context may require.  13.   No Partnership. This Assignment is not intended to, and will not, create a partnership or       joint venture among the parties, and no party to this Assignment will have the power or        authority to bind any other party except as explicitly provided in this Assignment.   Assignment of Management Agreement and  Subordination of l\Ianagemcnt Fees                                       Page4  

 

14.   Severability. The invalidity or unenforceability of any provision of this Assignment will        not affect the validity of any other provision, and all other provisions will remain in full        force and effect.   15.   Entire Assignment. This Assigrunent contains the entire agreement among the parties as        to the rights granted and the obligations assumed in this Assignment.   16.  No  \Vaiver; No Remedy Exclusive. Any forbearance by a party to this Assignment in        exercising any right or remedy given under this Assignment or existing at law or in        equity will not constitute a waiver of or preclude the exercise of that or any other right or        remedy. Unless otherwise explicitly provided, no remedy under this Assignment is        intended to be exclusive of any other available remedy, but each remedy will be        cumulative and will be in addition to other remedies given under this Assignment or        existing at law or in equity.   17.  Third Party Beneficiaries. Neither any creditor of any party to this Assignment, nor any        other person, is intended to be a third party beneficiary of this Assignment.   18.   Further Assurances and Corrective Instruments. To the extent permitted by law, the         parties will, from time to time, execute, acknowledge and deliver, or cause to be         executed, acknowledged and delivered, such supplements to this Assignment and such        further instruments as may reasonably be required for carrying  out the intention of or        facilitating the performance of this Assignment.   19.   Counterparts. This Assignment may be executed in multiple counterparts, each of which        will constitute an original document and all of which together will constitute one        agreement.  20.    Indemnity. By executing this Assignment Borrower agrees to indemnify and hold        harmless Lender and its successors and assigns from and against any  and all losses,        claims, damages, liabilities and expenses including Attorneys' Fees and Costs, which        may be imposed or incurred in connection with this Assignment.  21.    Costs and Expenses. Wherever pursuant to this Assigrunent it is provided that Borrower        will pay any costs and expenses, such costs and expenses will include Lender's        Attorneys' Fees and Costs.  22.    Determinations by Lender. In any instance where the consent or approval of Lender        may be given or is required, or where any determination, judgment or decision is to be        rendered by Lender under this Assignment, the granting, withholding or denial of such        consent or approval and the rendering of such determination, judgment or decision will        be made or exercised by Lender (or its designated representative) at its sole and exclusive        option and in its sole and absolute discretion and will be final and conclusive, except as        may be otherwise expressly and specifically provided in this Assignment.  23.   Successors and Assigns. This Assignment will be binding upon and inure to the benefit        of Borrower, Lender and Property Manager and their respective successors and assigns        forever.  24.   Secondary Market. Lender may sell, transfer and deliver the Note and assign the Loan        Agreement, the Security Instrument, this Assignment and the other Loan Documents to        one or more investors in the secondary mortgage market ("Investors"). In connection   Assignment of Management Agreement and  Subordination of Management Fees                                          Page5  

 

      with such sale, Lender may retain or assign responsibility for serv1cmg the Loan,        including the Note, the Loan Agreement, the Security Instrument, this Assignment and        the other Loan Documents, or may delegate some or all of such responsibility and/or        obligations to a servicer including any subservicer or master servicer, on behalf of the        Investors. All references to Lender in this Assignment will refer to and include any such        servicer to the extent applicable.  25.   Attached Exhibits. The following Exhibits, if marked with an "X" in the space        provided, are attached to this Assignment:                  Exhibit A     Modifications to Assignment                  Exhibit B     Copy of Management Agreement   IN WITNESS  WHEREOF    the undersigned have executed this Assignment as of the date and  year first written above.                             [ENO OF PAGE- SIGNATURES TO FOLLOW]    Assignment of Management Agreement and  Subordination ofM:magement Fees                                          Page6  

 

                                      BORRO\VER:                                         STAR   RIDGE CROSSINGS, LLC, a Delaware                                           limited liability company                                         By:  Steadfast Apartment Advisor, LLC, a                                             Delaware limited liability company, its                                             Manager                                               By:                                                 Ella S. Neyland      -=                                                 President    Assignment of Management Agreement and  Subordination ofl\lanagement Fees                                          Page S-1  

 

                                        LENDER:                                           PNC   BANK, NATIONAL ASSOCIATION,         a                                              national banking association    Assignment of Management Agreement and  Subordination of Management Fees                                                PageS-2  

 

                                            PROPERTY MANAGER:                                              STEADFAST MANAGEMENT             COi.YIPANY,                                                 INC., a California corporation                                               By:     ~e                                                 Name:   Ana Marie de! Rio                                                 Title:  Secretary    Assignment ofIHnuagement Agreement and  Subordination of l\fanagement Fees                                                    Page S-3  

 

                                  EXHIBIT A                         MODIFICATIONS TO ASSIGNMENT   The following modifications are made to the text of the Assignment that precedes this Exhibit.    I.   Section 3(a) is deleted in its entirety and replaced with the following:        (a)   The Management Agreement is in full force and effect and has not been modified;              Q!: amended er assignee! ether than JlUrsuant le this Assignmeet. There are no              assignments of the 1"Ianagement Agreement that remain in effect other than              pursuant to this Assignment.  2.    Section 6 is deleted in its entirety and replaced with the following:         6.   Receipt of Management Fees. Manager will not be obligated to return or refund              to Lender any Management Fees or other fee, commission or other amount              received by Property Manager prior to the occurrence of the Event of Default, and              to which Property Manager was entitled under the Management Agreement. If the              Property Manager receives any Management Fees after it has received notice of an              Event of Default, Property Manager agrees that such Management Fees will be              received and held in trust for Lender, to be applied by Lender to amounts due under              the Loan Documents; provided, however, that nothing herein shall prevent              Propertv Manager from terminating the Management Agreement in the event              Propertv Manager  is not paid all fees due to it under the Management              Agreement.     Assignment of Management Agreement and   Subordination of Management Fees                                       PagcA-1  

 

                               EXHIBITB                         MANAGEMENT AGREEMENT                                 See Attached    Assignment of l\lanngcment Agreement and  Subordination of Management Fees                                 Page B-1  

 

                 PROPERTY !VIA~AGEIVIENT AGREE!VIENT          THIS  PROPERTY   MANAGEMENT       AGREEMENT     (this ·'Agreement") is made and   entered into as of May 28, 2015 (the ·'Effective Date..  ), by and between STAR RIDGE   CROSS!l\GS,  LLC,  a Delaware  limited liability company ('·Owner..  ), and STEADFAST   MANAGE:v!ENT COMP,\NY, INC., a California corporation (..  Manager'").                                       ARTICLE    I                                     DEFINITIOJ'\S          Section 1.1  Definitions. The following terms shall have the following meanings when  used in this Agreement:          '·Agreement" has the meaning given in the introductory paragraph .          .. Annual Business Plan'" has the meaning given in Section 3.11 (a).          "Capital Budget"" has the meaning given in Section 3.11 (a).          "'Depositorv•· means such bank or federally-insured or other financial institution as Owner  shall designate in writing.          "Effective Date'" has the meaning given in the introductory paragraph.          ··Fiscal Year·· means the calendar year beginning January I and ending December 31 or  each calendar year, or such other fiscal year as determ inecl by Owner and of which Manager is  notified in writing; provided that the first Fiscal Year of this Agreement shall be the period  beginning on the Effective Date and ending on December 31 of the calendar year in which the  Effective Date occurs.         "Governmental Requirements" has  the meaning given in Section 3.14.         "Gross Collections" means all amounts actually collected as rents or other charges for use  and occupancy of apat1ment units and from users of garage spaces (if any), leases of other non­ dwelling facilities in the Property and concessionaires (if any) in respect of the Property, including  furniture rental, parking fees, forfeited security deposits, application fees, late charges, income  from  coin-operated machines, proceeds from  rental interruption insurance, and other  miscellaneous income collected at the Prope1ty; excluding, however, all other receipts, including  but not limited to, income derived from interest on investments or otherwise, proceeds of claims  on account of insurance policies (other than rental interruptions insurance), abatement of taxes,  franchise fees, and awards arising out of eminent domain proceedings, discounts and dividends on  insurance policies.         '"Hazardous Materials'" means any material defined as a hazardous substance under the  Comprehensive Environmental Response, Compensation and Liability Act of 1980, the Resource  Conservation and Recovery Act, or any state or local statute regulating the storage, release,  transportation or other disposition of hazardous material, as any of those laws may have been  amended to the date hereof, and the administrative regulations promulgated thereunder prior to the  

 

dale hereof, and, whether or not defined as hazardous  substances under the foregoing  Governmental  Requirements, petroleum products (other than petroleum products used in  accordance with Governmental Requirements by Owner or its tenants in the usual and ordinary  course of their activities), PCBs and radon gas.          ·'Major Capital Improvements·· has the meaning given in Section 3.6.          "Management Fee" has the meaning given in Section 4.1.          "iVlanager'' has the meaning given in the introductory paragraph.          "Operating Budget" has the meaning given in Section 3.1 l(a).          "Owner" has the meaning given in the introductory paragraph.          "Owner's Representative" has the meaning given in Section 2.2.          "Pass-Through Amounts" means fees and/or reimbursements for services provided to the  Property but not covered by the Management Fee, as described in Exhibit A attached hereto and  made a part hereof'.          "Property'' means the multifamily apartment project listed and described on Exhibit B  attached hereto and made a patt hereat:          "Securi!Y Deposit Account" has the meaning given in Section 5.1.         "State" means the state in which the Property is located.                                       ARTICLE 2            APPOINTMENT OF AGENCY AND RENTAL RESPONSIBILITY         Section 2.1  Appointment.   Owner  hereby appoints Manager and r-.,tnnager hereby  accepts appointment as the sole and exclusive leasing agent and manager of the Property on the  terms and conditions set forth herein. Owner warrants and represents tn jl,,Janager that Owner owns  fee simple title to the Property with all requisite autho1ity lo hereby appoint Manager and to enter  into this Agreement.                                                    ·         Section 2.2  Owner's Rcpresentath·c. Owner shall from time to time designate one or  more persons to serve as Owner's representative ("Owner's Representative") in all dealings with  Manager hereunder. Whenever  the approval, consent or other action of Owner is called for  hereunder, such approval, consent or action shall be binding on Owner if specified in writing and  signed by Owner's Representative. The initial Owner's Representative shall be Ella S. Neyland,  President. Any Owner's Representative may be changed at the discretion of Owner, at any time,  and shall be ellective upon Manager's receipt or written notice idcntitYing the new Owner's  Representative.                                             2  

 

       Section 2.3  Leasing. :-.1anager shall perfonn all promotional, leasing and management  activities required to lease apmtmcnt units in the Property. Throughout the term of this Agreement,  Manager  shall use its diligent efforts to lease apatiment units in the Property. Manager shall  advettise the Propetty, prepare and secure advertising signs, space plans, circulars, marketing  brochures and other forms of adve1tising. Owner hereby authorizes Manager pursuant to the terms  of this Agreement to advertise the Property in conjunction with institutional adve1tising campaigns  and  allocate costs on a pro rata basis among the Properties being advertised (to the extent  authorized by the Annual Business Plan). All inquiries for any leases or renewals or agreements  for the rental of the Prope1ty or po1tions thereof shall be referred to Manager and all negotiations  connected therewith shall be conducted solely by or under the direction of Manager. Manager is  hereby authorized to execute, deliver and renew residential tenant leases in its capacity as manager  pursuant to this Agreement. Manager is authorized to utilize the services of apartment locator  services and the fees of such services shall be operating expenses of the Property and, to the extent  paid by Manager, reimbursable by Owner.          Section 2.4  Manager's Standard of Care. Manager shall perform its duties under this  Agreement in a manner consistent with professional property management services. In no event  shall the scope or quality of services provided by Manager for the Properly hereunder be less Lhan  those generally pcrfonned by professional property managers of similar propettics in the market  area where the Property is located. Manager shall make available to Owner the full benefit of the  judgment, expcticnce, and advice of the members and employees of Manager's organization with  respect to the policies to be pursued by Owner in operating the Property, and will perform the  services set fmth herein and such other services as may be requested by Owner in managing,  operating, maintaining and servicing the Propc1ty.                                       ARTICLE3                    SERVICES TO    BE PERFORMED      BY MAl'iAGER          Section 3.1  Expense of Owner. All acts perfonned by Manager in the performance of'  its obligations under this Agreement shall be performed as an independent contractor of' Owner,  and all obligations or expenses incurred thereby, shall be for the account of, on behalf of, and at  the expense of Owner, except as otherwise specifically provided in this Article 3, provided Owner  shall be obligated to reimburse Manager only for the following:                (a)   Costs and Expenses. All costs and expenses incu1,-cd by :-.1anager, in its  capacity as Manager pursuant to this Agreement, in connection with the management and  operation of the Property, including but not limited to all compensation, including the cost of  benefits, payable to the employees at the Prope1ty and identified in the Operating Budget and taxes  and assessments payable in connection therewith and reasonable training, travel and expenses  associated therewith, all marketing costs, all collection and lease enforcement costs, all  maintenance and repair costs incurred in accordance with Section 3.5 hereof; all utilities and  related services, all on-site overhead costs and all other costs reasonably incu11"cd by Manager in  the operation and management of the Property, excluding, however, all of Manager's general  overhead costs, including without limitation. all expenses incurred at Manager's corporate  hcadqua1tcrs and other Manager office sites other than the property management otlicc located at  the Property (i.e., office expenses, long distance phone calls, postage, copying, supplies, electronic                                            3  

 

data processing and accounting expenses), general accounting and reporting expenses for services  included among Manager's duties under the Agreement; and               (b)  Other. All sums otherwise due and payable by Owner as expenses of the  Property authorized to be incurred by Manager under the terms of this Agreement and the  Operating Budget, including compensation payable under Section 4.1 hereof lo Manager for its  services hereunder.         Manager may use employees nonnally assigned to other work centers or paii-time  employees to properly staff the Property, reduced, increased or emergency work load and the like  including the property manager, business manager, assistant managers, leasing directors, or other  administrative personnel, maintenance employees or maintenance supervisors whose wages and  related expenses shall be reimbursed on a pro rata basis for the time actually spent at the Prope1ty.  A property manager or business manager at the Prope1iy and any other persons perfonning  functions substantially similar to those ofa business manager, including but not limited to assistant  managers, leasing directors, leasing agents, sales directors, sales agents, bookkeepers. and other  administrative and/or maintenance personnel performing work at the site. and on-site maintenance  personnel, shall not be considered executive employees of Manager. All reimbursable payments  made by Manager hereunder shall be reimbursed from ti.mds deposited in an account established  pursuant to Section 5.2 of this Agreement. Manager shall not be obligated to make any advance  to or for the account of Owner nor shall Manager be obligated to incur any liability or obligation  for the account of Owner without assurance that the necessary funds for the discharge thereof will  be provided by Owner. In the perfonnance of its duties as agent and manager of the Property,  Manager shall act solely as an independent contractor of Owner. All debts and liabilities to third  persons incurred by :vlanager in the course of its operation and management of the Property shall  be the debts and liabilities of Owner only, and Manager shall not be liable for any such debt or  liabilities, except to the extent Manager has exceeded its autho1ity hereunder.         Section 3.2 Covenants Concerning Pavmcnt of Operating Expenses. Owner  covenants to pay all sums for reasonable operating expenses in excess of gross receipts required  to operate the Property upon written notice and demand from Manager within live days after  receipt of written notice for payment thereat:         Section 3.3 Emplovment of Personnel. Manager shall use its diligent efforts to  investigate, hire, pay, supervise and discharge the personnel necessary to be employed by it to  properly maintain, operate and lease the Property, including without limitation a prope11y manager  or business manager at the Property. Such personnel shall in every instance be deemed agents or  employees, as the case may be, of Manager. Owner has no right of supervision or direction of  agents or employees of Manager whatsoever; however, Owner shall have the right to require the  reassignment or tcnnination of any employee. All Owner directives shall be communicated to  Manager's senior level management employees. Manager and all personnel of Manager who  handle or who arc responsible for handling Owner's monies shall be bonded in favor of Owner.  Manager agrees to obtain and keep in effect fidelity insurance in an amount not less than Two  Hundred Fifty Thousand Dollars ($250,000}. All reasonable salaries, wages and other  compensation of personnel employed by Manager, including so-called fringe benefits. worker's  compensation, medical and health insurance and the like, shall be deemed Lo be reimbursable  expenses of Manager. Manager may allow its employees who work at the Property and provide                                       4  

 

 services to the Property after nomrnl business hours, to reside at the Property for reduced rents (or   rent fee as provided in the Operating Budget) in consideration of their benefit to Owner and the   Property, provided such reduced rents are reflected in the Annual Business Plan.          Section 3.4  Utilitv and Service Contracts. Manager shall, in its capacity as ivlanagcr   pursuant to this  Agreement, at Owner's expense, enter into contracts for water, electricity, gas,   fuel, oil, telephone, vermin extennination, trash removal, cable television, security protection and   other services deemed by Manager to be necessary or advisable for the operation of the Property.   iv!anager shall also, in its capacity as Manager to this Agreement, at Owner's expense, place orders   for such equipment, tools, appliances, materials, and supplies as are reasonable and necessary to   properly maintain the Prope1ty. Owner agrees to pay or reimburse Manager for all expenses and   liabilities incun-ed by reason of this Section provided that such amounts are in accordance with the   Operating Budget.          Section 3.5  Maintenance and Repair of Propertv. Manager shall use diligent efforts  to maintain, at Owner's expense, the buildings, appurtenances and grounds of the Property in good  condition and repair, including interior and exterior cleaning, painting and decorating, plumbing,  carpentry and such other nomrnl maintenance and repair work as may be necessary or reasonably  desirable taking into consideration the amount allocated therefor in the Annual Business Plan.  With respect to any expenditure not contemplated by the Annual Business Plan, Manager shall not  incur any individual item of repair or replacement in excess of Five Thousand Dollars (55,000.00)  unless authorized in writing by Owner's Representative. except. however, that emergency repairs  immediately necessary for the preservation and safety of the Property or to avoid the suspension  of any service to the Prope1iy or danger of injury to persons or damage to property may be made  by Manager without the approval of Owner's Representative. Owner shall not establish standards  of maintenance and repair that violate or may violate any laws, rules, restrictions or regulations  applicable to Manager or the Property or that expose Manager to risk ofliability to tenants or other  persons.  Manager  shall not he obligated by this Section to perform any Major Capital  Improvements.          Section 3.6 Supervision  of Major  Capital Improvements   or Repairs.  When  requested by Owner in writing or as set forth in an Approved Business Plan, Manager or an affiliate  thereof shall, in its capacity as Manager pursuant to this Agreement, supervise the installation and  construction of all Major Capital Improvements to the Property where such work constitutes other  than normal maintenance and repair, for additional compensation as set forth in a separate  agreement.  If Owner  and Manager  fail to reach an agreement for Manager·s additional  compensation as provided in this Section 3.6, Owner may contract with a third party to supervise  installation or construction of Major Capital Improvements. In such events, lvlanager may, in its  capacity as Manager pursuant to this Agreement, negotiate contracts with all necessary contractors,  subcontractors, materialmen, suppliers, architects, and engineers and may, in its capacity as  Manager  pursuant to this Agreement, compromise and settle any dispute or claim arising  therefrom; provided only that Manager shall act in good faith  and in the best interest of Owner at  all times and Owner shall approve all contracts for such work. Manager will furnish or will cause  to be furnished all personnel necessary for proper supervision of the work and may assign  personnel located at the Prope1ty where such work is being pcrfonncd to such supervisory work  (and such assignment shall not reduce or abate any other fees or compensation owed to :Vlanager                                            5  

 

under  this Agreement). For the purposes of this Agreement. the tem, ''Major Capital  Improvements'' shall mean work having an estimated cost of $25,000 or more.                Owner acknowledges  that Manager, or an affiliate of Manager, may bid on any  such work, and that Manager, or an affiliate of Manager, may be selected to perform part or all of  the work; provided that if' Manager desires to select itself, or its affiliate to do any work, it shall   first notify Owner ofthe terms upon which it, or its affiliate, proposes to contract for the work, and  tenns upon which the independent contractors have offered to perform, and shall state the reasons   for preferring itself, or its affiliate, over independent contractors and Owner shall have fifteen duys   to disapprove Manager, or its affiliate, and to request perfomiance by an independent contractor.   Only Owner shall have the power to compromise or settle any dispute or claim arising from work   perfotmcd by Manager, or its affiliate; and it is expressly understood that the selection of Manager,   or its affiliate, will not affect any fee or other compensation payable to Manager hereunder.          Section 3. 7 Insurance.                (a)    Owner Requirements.   Owner agrees to maintain all fonns of insunmce   required by law or by any loan requirements for the Properly and as otherwise deemed by Owner   to be reasonable and necessary to adequately protect Owner and Manager, including but not limited   to public liability insurance, boiler insurance, fire and extended coverage insurance, and burglary   and theft insurance. All insurance coverage shall be placed with such companies, in such amounts   and with such beneficial interest appcaiing therein as shall be reasonably acceptable to Owner.   Public liability insurance shall be maintained in such amounts as Owner determines as   commercially reasonable or as otherwise required by its lenders or investors, but in no case in an   amount less than $5,000,000.                Owner agrees to timely provide evidence of required insurance to Manager, and   acknowledges that if evidence of insurance coverage is not timely furnished, Manager may, but   shall not be obligated to, obtain such coverage in its capacity as Manager pursuant to this   Agreement. Manager shat I be named an additional insured on all Owner obtained insurance.                (b)    Manager Requirements. Manager agrees to maintain, at its own expense,   public liability insurance in an amount not less than Two Million Dollars ($2,000,000) and all   other fom1s of insurance required by law and as otherwise deemed by Owner and Manager to be   reasonable and necessary to adequately protect Owner and Manager, including but not limited to   workers compensation insurance, professional liability, employee practices, and fidelity insurance.   Manager agrees to timely provide evidence ofrequired insurance to Owner and lo name Owner as   an additional insured on appropriate policies.                 Manager shall use its diligent efforts to investigate and make a written report lo the   insurance company as to all accidents, claims for damage relating to the ownership, operation and   maintenance of the Property, any damage or destrnction to the Property und the estimated cost of   repair thereof, and shall prepare any and all reports for any insurance company in connection   therewith. All such reports shall be timely filed with the insurance company as required under the   tenns of the insurance policy in vol vcd. With the prior written approval of Owner, lvlanager is   authorized to settle any and all claims against insurance companies arising out of any policies,   including the execution of proofs of loss. the adjustment of losses, signing of receipts and                                             6  

 

 collection of monies (no approval by Owner shall be required for the settlement of' claims ofS5,000   or less). Manager is further authorized to contract for the maintenance and repair of any damage   or casualty in accordance with Section 3.6 above. Manager shall receive as an additional fee for   such services that fee designated in the loss adjustment as a general contractor"s fee, provided that   insurance proceeds that exceed the cost of repairing the damage or restoring the loss are available   to pay such fees. In such event Manager shall be responsible for all costs incurred by Manager in   adjusting such loss and contracting for repairs.               (c)   Loss or Liabilitv Claims. Owner and Manager mutually ai,~·ee for  the   benefit of each other to look only to the appropriate insurance coverages in effect pursuant to this   Agreement in the event any demand, claim, action, damage, loss, liability or expense occurs as a   result of injury to person or damage to prope11y, regardless whether any such demand, claim,   action, damage, loss, liability or expense is caused or contributed to, by or results from the   negligence of Owner or Manager or their respective subsidiaries, affiliates, employees, directors,   officers, agents or independent contractors and regardless whether the injury to person or damage   to property occurs in and about the Property or elsewhere as a result of the perfo1111ance of this   Agreement. Except for claims that are covered by the indemnity contained in Section 3. 7(d) below,   Owner agrees that Owner's insurance shall be primary without right of subrogation against   Manager with respect to all claims, actions, damage, Joss or liability in or about the Prope11y.   Neve11heless, in the event such insurance proceeds arc insufficient to satisfy (or such insurance   docs not cover) the demand, claim, action, loss, liability or expense, Owner ai,,,-ccs, at its expense,   to indemnify and hold Manager and its subsidiaries, affiliates, officers, directors, employees,   agents or independent con!ructors hannless to the extent of excess liability. For purposes of this   Section 3.7(c), any deductible amount under any policy of insurance shall not be deemed to be   included as part of collectible insurance proceeds.               (d)   Indemnification. Notwithstanding anything contained in this Agreement   to the contrary, Owner shall defend, indemnity, and hold harmless Manager and its representative  subsidiaries, affiliates, officers, directors, employees, agents or independent contractors from and  against all claims, demands, or legal proceedings (including expenses and reasonable attorney's  fees incmTed in connection with the defense of any such matter) (each a "Claim") that are brought  against Manager arising out of the operation or management of the Project, except with respect to  claims arising out of tvlanager's gross negligence or willful misconduct. Manager shall defend,  indemnify, and hold harmless Owner and its representative subsidiaries, affiliates, officers,  directors, employees, agents or independent contractors from all Claims arising out of the gross  negligence or willful misconduct of Manager. The indemnification obligations under this Section  3.7(d) shall survive te1111ination of this Agreement.               (e)   Acts of Tenants and Third Parties. In no event shall Manager have any  liability to Owner or others for any acts of vandalism, trespass or criminal activity of any kind by  tenants or third parties on or with respect to the Property and Owner"s insurance shall be primary  insurance without right of subrogation against Manager regarding claims arising out of or resulting  from acts of vandalism, trespass or criminal activity.         Section 3.8 Collection of Monies. Manager shall use its diligent efforts to collect all  rents and other charges due from tenants, users of garage spaces, carports, storage spaces (if any),  commercial lessees (if any) and concessionaires (if any) in respect of the Propc11y and otherwise                                        7  

 

 due Owner with respect to the Prope1ty in the ordinary course of business, provided that Manager   docs not guarantee the creditworthiness of any tenants, users, lessees or concessionaires or   collectability of accounts receivable from any of the foregoing. Owner auth01izes Manager. in its   capacity as Manager pursuant to this Agreement, to request, demand, collect, receive and receipt   for all such rent and other charges and to institute legal proceedings at Owner's expense, for the  collection thereof, and for the dispossession of tenants and other persons from the Properly or to  cancel or terminate any lease, license or concession agreement for breach or default thereunder,  and such expense may include the engaging of legal counsel for any such matter. All monies  collected by Manager shall be deposited in the separate bank account refctTcd to in Section 5.2  herein.          Section 3.9  Manager Disbursements.                (a)    Manager's  Compensation   and   Reimbursements.     From   Gross  Collections, Manager shall be authorized to retain and pay ( 1) Manager's compensation. together  with all sales or other taxes (other than income) which Manager is obligated, presently or in the  future, to collect and pay to the State or any other governmental authority with respect to the  Property or employees at the Propctiy, (2) the amounts reimbursable to Manager under this  Agreement, (3) the amount of all real estate taxes and other impositions levied by approptiate  authorities with respect to the Property which, if not escrowed with any mortgagee, shall be paid  upon specific wtitten direction of Owner before interest begins to accrue thereon; and (4) amounts  otherwise due and payable as operating expenses of the Property authorized to be inctmed under  the terms of this Agreement.                (b)   Debt Service. The provisions of this Section 3.9 regarding disbursements  shall include the payment ofdcbl service related to any 11101tgages of the Property, unless otherwise  instructed in wtiting by Owner.                (c)   Third  Parties. All costs, expenses, debts and liabilities owed to third  persons that arc incun-ed by Manager pursuant to the tcnns of this Agreement and in the course of  managing, leasing and operating the Property shall be the responsibility of Owner and not  Manager. Owner agrees to provide sufficient working capital funds to Manager so that all amounts  due and owing may be promptly paid by Manager. Manager is not obligated to advance any funds.  If at any time there is not sufficient cash in the account available to Manager pursuant lo  Section 5.2 with which to promptly pay the bills due and owing, Manager will request that the  necessary additional funds be deposited by Owner in an amount sufficient to meet the sh01tfall.  Owner will deposit the additional funds requested by ;vfanager within five days.                (d)   Other  Prnvisions.  The  provisions of this Section 3.9 regarding  reimbursements to Manager shall not limit Manager's rights under any other provision of this  Agreement.         Section 3.10 Use and  Maintcmmce   of Premises. Manager  agrees that it will not  knowingly permit the use of the Property for any purpose that might void any insurance policy  held by Owner or that might render any loss thereunder uncollcctible, or that would be in violation  of Governmental Requirements, or any covenant or restriction of any lease of the Propc1ty.  Manager shall use its good faith efforts to secure substantial compliance by the tenants with the                                            8  

 

 tern1S and conditions of their respective leases. All costs of c01Tecting or complying with, and all   fines payable in connection with, all orders or violations affecting the Property placed thereon by   any governmental authority or Board of Fire Underwriters or other similar body shall be at the cost   and expense of Owner.          Section 3.11 Annual Business Plan.                (a)  Submission. No later than 60 days prior to the end of each Fiscal Year   during the tcrn1 of this Agreement, or such earlier date as reasonably requested by Owner. its   lenders or investors, Manager shall prepare and submit to Owner for Owner's approval, an Annual   Business Plan for the promotion, leasing, operations, repair and maintenance of the Property for   the succeeding Fiscal Year during which this Agreement is to remain in effect (the "Annual   Business Plan"). The Annual Business Plan shall include a detailed budget of projected income   and expenses for the Property for such Fiscal Year (the "Operating Budget") and a detailed   budget of projected capital improvements for the Property for such Fiscal Year (the ·'Capital   Budget").               (b)   Approval. Manager shall meet with Owner to discuss the proposed Annual   Business Plan and Owner shall approve the proposed Annual Business Plan within 20 days of its   submission to Owner, or as soon thereafter as commercially practicable. To be effective, any   notice which disapproves a proposed Annual Business Plan must contain specific objections in   reasonable detail to individual line items. If Owner foils to provide an effective notice   disapproving a proposed Annual Business Plan within such 20-day pe1iod, the proposed Annual   Business Plan shall be deemed to be approved. Owner acknowledges that the Operating Budget   is intended only to be a reasonable estimate of the income and expenses of the Property for  the   ensuing Fiscal Y car. Manager shall not be deemed to have made any guarantee, wa1rnnty or   representation whatsoever in connection with the Operating Budget.               (c)   Revision. Manager may revise the Operating Budget from time to time, as   necessary, to reflect any unpredicted significant changes, vaiiables or events or to include   significant additional, unanticipated items of revenue and expense. Any such revision shall be   submitted to Owner for approval, which approval shall not be unreasonably withheld, delayed or  conditioned.               (d)   Implementation. Manager agrees to use diligence and to employ all  reasonable efforts to ensure that the actual costs of maintaining and operating the Propetty shall  not exceed the Operating Budget either in total or in any one accounting category. Any expense  causing or likely to cause a variance of greater than ten percent ( l 0%) or $25,000, whichever is  greater, in any one accounting category for the cun-ent month cumulative year-to-date total shall  be promptly explained to Owner by Manager in the next operating statement submitted by  Manager to Owner.         Section 3.12 Records. Reporting. ivlanager shall maintain al the regular business office  of' Manager or at such other address as Manager shall advise Owner in writing, separate books and  journals and orderly files, containing rental records, insurance policies, leases, con-espondcnce,  receipts, bills and vouchers, and all other documents and papers pertaining directly to the Property  and the operation thereof. All corporate statements, receipts, invoices, checks, leases, contracts,                                        9  

 

 worksheets, financial statements, books and records, and all other instruments and documents   relating to or arising from the operation or management of the Property shall be and remain the   property of Owner and the Owner shall have the light to inspect such records at any reasonable   time upon prior notice; Manager shall have the right to request and maintain copies of all such   matters, at Manager"s cost and expense, at all reasonable times dming the term of this Agreement,   and for a reasonable time thereafter not to exceed three years. All on-site records. including leases,   rent rolls, and other related documents shall remain at the respective Property for which such   records are maintained as the property of Owner.          Section 3.13 Financial Reports.               (a)   Monthly Reports. On or before the fifteenth (151h) day of each month   during the tenn of this Agreement. i\fanager shall deliver or cause to be delivered to Owner·s   Representative a statement of cash flow for the Prope1ty (on a cash and not an accrual basis) for   the preceding calendar month. All notices from any mortgagee claiming any default in any   mmtgage on the Property, and any other notice from any mortgagee not of a routine nature, shall   be promptly delivered by Manager to Owner"s Representative.               (b)   Annual Reports. Within 45 days after the end of each Fiscal Year,   Manager shall deliver to Owner's Representative a statement or cash flow showing the results of   operations for the Fiscal Y car or portion thereof during which the provisions of this Agreement   were in effect.               (c)   Emplovee Files. Manager shall execute and file punctually when due nil   forms, repo1ts and returns required by law relating to the employment of personnel.         Section 3.14 Compliance with Governmental Requirements. Manager shall comply   with all laws, ordinances and regulations relating to the management, leasing and occupancy of   the Property, including any regulatory or use agreements. Owner acknowledges that Manager   docs not hold itself out to be an expert or consultant with respect to, or represent that, the Property   currently complies with applicable ordinances, regulations, rules, statutes, or laws of governmental   entities having jurisdiction over the Properties or the requirements of the Board of Fire   Underwriters or other similar bodies (collectively. "Governmental Requirements''). Manager   shall take such action as may be reasonably necessary to comply with any Governmental   Requirements applicable to Manager, including the collection and pa)~nent of all sales and other   taxes (other than income taxes) which may be assessed or charged by the State or any governmental   entities in connection with Manager's compensation. If Manager discovers that the Property does  not comply with any Governmental Requirements, Manager shall take such action as may be  reasonably necessary to bring the Property into compliance with such Governmental  Requirements, subject to the limitation contained in Section 3.5 of this Agreement regarding the  making of alterations and repairs. Manager, however, shall not take any such action as long as  Owner is contesting or has affinncd its intention to contest and promptly institute proceedings  contesting any such order or requirement. It; however, failure to comply promptly with any such  order or requirement would or might expose Manager to civil or criminal liability. Manager shall  have the tight, but not the obligation, to cause the same to be complied with and Owner agrees to  indemnify and hold iv!anager hannlcss for taking such actions and to promptly reimburse Manager  for expenses incmTed thereby. Manager shall promptly, and in no event later than 72 hours from                                        IO  

 

 the time ofrcceipt, notify Owner's Representative in writing of all such orders ornotices. Manager   shall not be liable for any effort or judgment or for any mistake of fact or oflaw, or for anything   that it may do or refrain from doing, except in cases of willful misconduct or gross negligence of   Manager.                                    ARTICLE4                       MANAGER'S COMPENSATION. TER!vl          Section 4.1 Fees Paid to Manager. Commencing on the date hereof, Owner shall pay   to Manager a fee (the ·'Management Fee''), payable monthly in arrears, in an amount equal to   Two and Seventy-five Hundredths Percent (2.75%) of Gross Collections for such month. The   Management Fee shall not be subject to oIT-sets and charges unless agreed upon by the parties.   Pass-Through Amounts shall be collected monthly by Manager, as applicable.          Section 4.2 Term. This Agreement shall commence on the Effective Date, and shall   thereafter continue for a period of one (I) year from the Effective Date, unless otherwise   terminated as provided herein. Thereafter, if neither patiy gives written notice to the other at least   60 days prior to the expiration date hereof that this Agreement is to terminate, then this Agreement   shall be automatically renewed on a month-to-month basis.         Section 4.3 Termination Rights. Notwithstanding anything that may he contained   herein to the contrary, Owner may terminate this Agreement at any time by giving Manager thhiy   (30) days written notice thereof upon a determination of gross negligence, willful misconduct or   bad acts of Manager or any of its employees. If Owner or Manager shall materially breach its   obligations  hereunder, and such breach remains uncured for a period of 30 days after written   notification of such breach, the party not in breach hereunder may tenninate this Agreement by   giving written notice to the other. Any notice given pursuant to this A11iclc 4, shall be sent by   certified mail.         Section 4.4 Duties on Termination. Upon any termination of this Agreement as   contemplated in Section 4.4, Manager shall be entitlcd to receive all compensation and  reimbursements, if any, due to Manager through the date oftem1ination. Within 30 days after any  tem1ination, Manager shall deliver to Owner's Representative, the report required by  Section 3.13(a) for any period not covered by such a report at time oftcnnination, and within 30  days after any such tcm1ination, ;\,lanager shall deliver to Owner's Representative. as required by  Section 3. l 3(h ), the statement of cash flow for the Fiscal Y car or portion thereof ending on the  date of termination. In addition, upon tennination of this Agreement for any reason, Manager will  submit to Owner within 30 clays after termination any reports required hereunder, all of the cash  and bank accounts of the Property, including, without limitation, the Security Deposit Account,  investments and records. ::vlanagcr will, within 30 days aller tcnnination, turn over to Owner all  copies of all books and records kept for the Property. If Manager desires to retain records of the  Property, Manager must reproduce them at its own expense.                                         11  

 

                                ARTICLE 5       PROCEDURES FOR HANDLING RECEIPTS AND OPERATING CAPITAL         Section 5.1 Sccuritv Deposits. Manager shall collect, deposit, hold. disburse and pay  secmity deposits as required by applicable State law and all other applicable laws, and in  accordance with the tenns of each tenant's lease. The amount or each security deposit will be  specified in the tenant's lease. Security deposits shall be deposited into a separate non-interest­ bearing account unless otherwise required by law (the "Security Deposit Account") at a  Depository selected by Manager and approved by Owner. For so long as any such security  deposit(s) are refundable, unless Owner informs Manager in writing that it intends to hold the  Security Deposit Account, the Secu1ity Deposit Account may be established in the name of the  Manager acting in its capacity as manager pursuant to this Agreement and held separate from all  other Manager's funds and accounts. If such account is held by Manager, only representatives of  Manager acting in their capacity as representatives of the Manager pursuant to this Agreement will  be signatories lo this account. lipon such time that any security dcposit(s) shall become non­ refundable and property of the Owner, such security deposit(s) shall immediately be transfctTcd to  an account in the name of the Owner. To the extent possible, the Security Deposit Account shall  be fully insured by the Federal Deposit Insurance Corporation (FDIC). Owner agrees to indemnity  and hold harmless Manager, and Manager's representatives, officers, directors and employees for  any loss or liability with respect to any use by Owner of the tenant secmity deposits that is  inconsistent with the terms oftcnant leases and applicable laws.        Section 5.2 Separation of Owner's Monies. Manager shall deliver all collected rents,  charges and other amounts received in connection with the management and operation or the  Propcny (except for tenants' security deposits. which will be hamlled as spccilied in this  Agreement) to a Depository selected by Manager and approved by Owner.        Section 5.3 Depository Accounts. Except to the extent that Manager has not complied  with its obligations under Sections 2.4 and 5.2, Owner and Manager agree that Manager shall have  no liability for loss of funds of Owner contained in the bank accounts for the Prope1iy maintained  by Owner or Manager pursuant to this Agreement due to insolvency of the bank or financial  institution in which its accounts are kept, whether or not the amounts in such accounts exceed the  maximum amount of federal or other deposit insurance applicable with respect to the financial  institution in question.        Section 5.4 \Vorking Capital. In addition lo the fhnds derived from the operation of  the Property, Owner shall furnish and maintain in the operating accounts of the Property such other  funds as may be necessary to discharge financial commitments required to efficiently operate the  Property and to meet all payrolls and satisfy, before delinquency, and to discharge all accounts  payable. Manager shall have no responsibility or obligation with respect to the furnishing of any  such funds. Neve11helcss, Manager shall, in its capacity as Manager pursuant to this Agreement,  have the right, but not the obligation, to advance funds or contribute property to satisfy obligations  of Owner in connection with this Agreement and the Property. Manager shall keep approp1iatc  records to document all reimbursable expenses paid by !vlanager, which records shall be made  available for inspection by Owner or its agents on request. Owner agrees to reimburse iv!anager  upon demand for money paid or property contiibuted in connection with the Property and this  Agreement.                                       12  

 

       Scction 5.5 Authorized Signatures. Any persons from lime to time designated by   Manager shall be authorized signatories on all bank accounts established by Manager pursuant to   this Agreement and shall have authority lo make disbursements pursuant lo the terms of this   Agreement from such accounts. Funds may be withdrawn from all bank accounts established by   iv!anager, in accordance with this Article 5, only upon the signature ofan individual who has been   granted that authority by Manager and funds may not be withdrawn from such accounts hy Owner   unless 1vlanager is in default hereunder.                                    ARTICLE 6                                MISCELLANEOUS          Section 6. I Assignment. Upon 30 days Wlitten notification, Owner may assign its   rights and obligations to any successor in title to the Prope1iy and upon such assignment shall be   relieved of all liability accruing after the effective date of such assignment. This Agreement may   not be assigned or delegated by Manager without the prior written consent of Owner, which Owner   may withhold in its sole discretion. Any unauthorized assignment shall be null and void ab inirio,   and shall not in any event release :\1anager from any liabilities hereunder.          Section 6.2 Notices. All notices required or pc1111illed by this Agreement shall be in   writing and shall be sent by registered or certified mail, addressed in the case of Owner to ST AR   Ridge Crossings, LLC, 18100 Von Kannan Avenue, Suite 500, Irvine, CA 92612, Attention:   Kevin Keating; and in the case of Manager to Steadfast I'vlanagemcnt Company, Inc., I 8100 Von   Kannan Avenue, Suite 500,  Irvine, CA 92612, Attention: Christopher Hilbert, or to such other   address as shall, from time to time, have been designated by wlitten notice by either party given   to the other party as herein provided.         Section 6.3 Entire Agreement. This Agreement shall constitute the entire agreement   between the parties hereto and no modification thereof shall be effective unless in writing executed   by the parties hereto.         Section 6.4 No Partnership. Nothing contained in this Agreement shall constitute or   be construed to be or create a partnership or joint venture between Owner, its successors or assigns,   on the one part, and Manager, its successors and assigns, on the other part.         Section 6.5 No Third Partv Bencficiarv. Neither this Ai,rreement nor any part hereof  nor any service relationship shall inure lo the benefit of any third party, to any trnstee in  bankruptcy, to any assignee for the benefit of creditors, to any receiver by reason of insolvency, to  any other fiduciary or officer representing a bankrupt or insolvent estate of either party, or to the  creditors or claimants of such an estate. Without limiting the generality of the foregoing sentence,  it is specifically understood and agreed that such insolvency or banktuptcy of either pat1y hereto  shall, at the option of the other party, void all rights of such insolvent or bankrupt party hereunder  (or so many of such rights as the other pm1y shall elect to void).         Section 6.6 Sevcrabilitv. If any one or more of the provisions of this Agreement, or  the applicability of any such provision to a specific situation, shall be held invalid or  unenforceable, such provision should be modified to the minimum extent necessary to make it or                                         13  

 

its application valid and enforceable, and the validity and enforceability of all other provisions of  this Agreement and all other applications of such provisions shall not be affected thereby.         Section 6. 7 Captions, Plural Terms. Unless the context clearly requires otherwise, the  singular number herein shall include the plural, the plural number shall include the singular and  any gender shall include all genders. Titles and captions herein shall not affect the construction or  this Agreement.         Section 6.8 Attorneys' Fees. Should either patty employ an attorney to enforce any of  the provisions of this Agreement, or lo recover damages for breach of this Agreement, the non­ prevailing party in any action agrees to pay to the prevailing pmty all reasonable costs, damages  and expenses, including reasonable attorneys' Ices. expended or incurred by the prevailing party  in connection therewith.         Section 6. 9 Signs. iv!anagcr shall have the right to place signs on the Propetty in  accordance with applicable Governmental Requirements stating that Manager is the manager and  leasing agent for the Property.         Section 6.10 Survival of lnclcmnities. The indemnification obligations of the parties to  this Agreement shall survive the termination of this Agreement to the extent of any claim or cause  of action based on an event occurring prior to the date of termination.         Section 6.11 Governing Law. This Agreement shall be construed under and in  accordance with the laws of the State and is fully performable with respect to the Property in the  county in which the Property is located.         Section 6.12 Competitive Properties. Manager may, individually or with others,  engage or possess an interest in any other project or venture of every nature and description,  including but not limited to, the ownership, financing, leasing, operation, management, brokerage  and sale ofreal estate projects including apartment projects other than the Propetty, whether or not  such other venture or projects are competitive with the Property and Owner shall not have any  claim as to such project or venture or to the income or profits derived therefrom.         Section 6.13 Set Off. Without prejudice lo \1anager's right to terminate this Agreement  in accordance with the tenns of this Agreement, Manager may at any time and without notice to  Owner, set off or transfer any sums held by Manager for or on behalf of Owner in the accounts  (other than the Secutity Deposit Account) maintained pursuant to this Agreement in or towards  satisfaction of any of Owner's liabilities to Manager in respect of any sums due to Manager under  this Agreement.         Section 6.14 Notice of Default. Manager shall not be deemed in default under this  Agreement, and Owner's right to tenninate Manager as a result of such default shall not accrue.  until Owner has delivered written notice of default to Manager and Manager has failed to cure  same within 30 clays from the date of receipt of such notice.        Section 6.15 Counterparts. This Agreement may be executed in two or more  counterpaits, each of which shall be deemed to be an original.                                        14  

 

            This Property Management  Agreement is hereby executed by duly authorized  representatives of the parties hereto as of the Effective Date.                                    STAR  RIDGE CROSSINGS, LLC,                                  a Dclawurc limited liability company                                  By:    Steadfast Apartment Advisor, LLC. its Mnnngcr    MANAGER:                       STEADFAST MANAGEMENT COMPANY, INC.,                                 a California corporation                                  By:._&+-'.~-,dLL--~~-·~,,-·~;   ___                                       Ana Marie del Rio, Vice President                                            15  

 

                                     EXHIBIT A                        ESTIMATED     PASS-THROUGH     AMOUNTS    Benefits Administration                                  3.0% of total employee costs   IT Inrrastrncture, Licenses and Supp011                  At cost and expense  l\'1arketing/Training/Continuing Education                $20.00 p.u.p.y.                                             16  

 

                                     EXHIBIT B                                    THE  PROPERTY    Ridge Crossings Apaiiment Homes is located at I 00 Tree Crossings Parkway, Birmingham.  Alabama, in the County of Jefferson, and described as follows:   The Property is comprised of 41 buildings with 720 units in three phases. Site amenities include  2 tennis courts, 2 pools, fitness center, racquetball court, playground, media room, and  community room.  It is situated on 86.0 acres and it was built in 1991/ 1992/1996.                                             17

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