Document:

Multifamily Mortgage

 Exhibit 10.4 
 Prepared by, and after recording 
 return to: 

PNC Bank, National Association 
 10731 Treena
Street, Suite 201 
 San Diego, CA 92131 

Attention: Kelli A. Tyler 
 PNC Loan
No. 310230373 
 Fannie Mae No. 865556 
 MULTIFAMILY MORTGAGE, 
 ASSIGNMENT OF LEASES AND RENTS, 

SECURITY AGREEMENT 
 AND FIXTURE FILING 
 (KENTUCKY) 

  

					
	Fannie Mae Multifamily Security Instrument	  	Form 6025.KY	  	
	Kentucky	  	01-11	  	© 2011 Fannie Mae

 TABLE OF CONTENTS 

 

							
	 	  	 	  	PAGE	 
			
	 1.
	  	DEFINED TERMS	  			
			
	 2.
	  	SECURITY AGREEMENT; FIXTURE FILING	  	 	5	  
			
	 3.
	  	ASSIGNMENT OF LEASES AND RENTS; APPOINTMENT OF RECEIVER; LENDER IN POSSESSION	  	 	6	  
			
	 4.
	  	PROTECTION OF LENDER’S SECURITY	  	 	8	  
			
	 5.
	  	NO OTHER INDEBTEDNESS AND MEZZANINE FINANCING	  	 	8	  
			
	 6.
	  	DEFAULT; ACCELERATION; REMEDIES	  	 	9	  
			
	 7.
	  	WAIVER OF STATUTE OF LIMITATIONS AND MARSHALING	  	 	10	  
			
	 8.
	  	WAIVER OF REDEMPTION; RIGHTS OF TENANTS	  	 	10	  
			
	 9.
	  	NOTICE	  	 	11	  
			
	 10.
	  	MORTGAGEE-IN-POSSESSION	  	 	11	  
			
	 11.
	  	RELEASE	  	 	12	  
			
	 12.
	  	FUTURE ADVANCES	  	 	12	  
			
	 13.
	  	GOVERNING LAW; CONSENT TO JURISDICTION AND VENUE	  	 	12	  
			
	 14.
	  	MISCELLANEOUS PROVISIONS	  	 	12	  
			
	 15.
	  	TIME IS OF THE ESSENCE	  	 	13	  
			
	 16.
	  	WAIVER OF TRIAL BY JURY	  	 	13	  

  

					
	Fannie Mae Multifamily Security Instrument	  	Form 6025.KY	  	Page i
	Kentucky	  	01-11	  	© 2011 Fannie Mae

 MULTIFAMILY MORTGAGE, 

ASSIGNMENT OF LEASES AND RENTS, 
 SECURITY AGREEMENT 
 AND FIXTURE FILING 

This MULTIFAMILY MORTGAGE, ASSIGNMENT OF LEASES AND RENTS, SECURITY AGREEMENT AND FIXTURE FILING (as amended, restated, replaced,
supplemented, or otherwise modified from time to time, the “Security Instrument”) dated as of August 24, 2011 is executed by SIR COOPER CREEK, LLC, a limited liability company, organized and existing under the laws of Delaware,
as mortgagor (“Borrower”), to and for the benefit of PNC BANK, NATIONAL ASSOCIATION, a national banking association, as mortgagee (“Lender”). 
 Borrower, in consideration of (i) the loan in the original principal amount of $6,773,000.00 (the “Mortgage Loan”) evidenced by that certain Multifamily Note dated as of the date of
this Security Instrument, executed by Borrower and made payable to the order of Lender, maturing on September 1, 2018, (as amended, restated, replaced, supplemented, or otherwise modified from time to time, the “Note”), and
(ii) that certain Multifamily Loan and Security Agreement dated as of the date of this Security Instrument, executed by and between Borrower and Lender (as amended, restated, replaced, supplemented or otherwise modified from time to time, the
“Loan Agreement”), and to secure to Lender the repayment of the Indebtedness (as defined in this Security Instrument), and all renewals, extensions and modifications thereof, and the performance of the covenants and agreements of
Borrower contained in the Loan Documents (as defined in the Loan Agreement), excluding the Environmental Indemnity Agreement (as defined in this Security Instrument), irrevocably and unconditionally mortgages, grants, assigns, remises, releases,
warrants and conveys to and for the benefit of Lender the Mortgaged Property (as defined in this Security Instrument), including the real property located in the County of Jefferson, State of Kentucky, and described in Exhibit A attached
to this Security Instrument and incorporated by reference (the “Land”), to have and to hold such Mortgaged Property unto Lender and Lender’s successors and assigns, forever; Borrower hereby releasing, relinquishing and waiving,
to the fullest extent allowed by law, all rights and benefits, if any, under and by virtue of the homestead exemption laws of the Property Jurisdiction (as defined in this Security Instrument), if applicable. 

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

Borrower and Lender, by its acceptance hereof, each covenants and agrees as follows: 

 

	1.	 Defined Terms. 

 Capitalized terms used and not specifically defined herein have the meanings given to such terms in the Loan Agreement. All terms used and not specifically defined herein, but which are otherwise defined
by the UCC, shall have the meanings assigned to them by the UCC. The following terms, when used in this Security Instrument, shall have the following meanings: 
 “Condemnation Action” means any action or proceeding, however characterized or named, relating to any condemnation or other taking, or conveyance in lieu thereof, of all or any part of
the Mortgaged Property, whether direct or indirect. 
 “Enforcement Costs” means all expenses and costs,
including reasonable attorneys’ fees and expenses, fees and out-of-pocket expenses of expert witnesses and costs of investigation, incurred by Lender as a result of any Event of Default under the Loan Agreement or in connection with efforts to
collect any amount due under the Loan Documents, 

  

					
	Fannie Mae Multifamily Security Instrument	  	Form 6025.KY	  	Page 1
	Kentucky	  	01-11	  	© 2011 Fannie Mae

 
or to enforce the provisions of the Loan Agreement or any of the other Loan Documents, including those incurred in post-judgment collection efforts and in any bankruptcy or insolvency proceeding
(including any action for relief from the automatic stay of any bankruptcy proceeding or Foreclosure Event) or judicial or non-judicial foreclosure proceeding, to the extent permitted by law. 

“Environmental Indemnity Agreement” means that certain Environmental Indemnity Agreement dated as of the date of this
Security Instrument, executed by Borrower to and for the benefit of Lender, as the same may be amended, restated, replaced, supplemented, or otherwise modified from time to time. 
 “Environmental Laws” has the meaning set forth in the Environmental Indemnity Agreement. 
 “Event of Default” has the meaning set forth in the Loan Agreement. 
 “Fixtures” means all Goods that are so attached or affixed to the Land or the Improvements as to constitute a fixture under the laws of the Property Jurisdiction. 

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

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

 (b) the premiums for fire and other casualty insurance, liability insurance, rent loss insurance and such
other insurance as Lender may require under the Loan Agreement; 
 (c) Taxes; and 

(d) amounts for other charges and expenses which Lender at any time reasonably deems necessary to protect the Mortgaged Property, to
prevent the imposition of liens on the Mortgaged Property, or otherwise to protect Lender’s interests, all as reasonably determined from time to time by Lender. 

  

					
	Fannie Mae Multifamily Security Instrument	  	Form 6025.KY	  	Page 2
	Kentucky	  	01-11	  	© 2011 Fannie Mae

 “Improvements” means the buildings, structures, improvements, and
alterations now constructed or at any time in the future constructed or placed upon the Land, including any future replacements, facilities, and additions and other construction on the Land. 
 “Indebtedness” means the principal of, interest on, and all other amounts due at any time under the Note, the Loan Agreement, this Security Instrument or any other Loan Document (other
than the Environmental Indemnity Agreement and Guaranty), including Prepayment Premiums, late charges, default interest, and accrued interest as provided in the Loan Agreement and this Security Instrument, advances, costs and expenses to perform the
obligations of Borrower or to protect the Mortgaged Property or the security of this Security Instrument, all other monetary obligations of Borrower under the Loan Documents (other than the Environmental Indemnity Agreement), including amounts due
as a result of any indemnification obligations, and any Enforcement Costs. 
 “Land” means the real property described in
Exhibit A. 
 “Leases” means all present and future leases, subleases, licenses, concessions or
grants or other possessory interests now or hereafter in force, whether oral or written, covering or affecting the Mortgaged Property, or any portion of the Mortgaged Property (including proprietary leases or occupancy agreements if Borrower is a
cooperative housing corporation), and all modifications, extensions or renewals thereof. 
 “Lien” means any claim or
charge against property for payment of a debt or an amount owed for services rendered, including any mortgage, deed of trust, deed to secure debt, security interest, tax lien, any materialman’s or mechanic’s lien, or any lien of a
Governmental Authority, including any lien in connection with the payment of utilities, or any other encumbrance. 

“Mortgaged Property” means all of Borrower’s present and hereafter acquired right, title and interest in and to all
of the following: 
 (a) the Land; 
 (b) the Improvements; 
 (c) the Personalty; 

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

 (f) awards, payments and other compensation made or to be made by any municipal, state or federal authority with respect to
the Land, the Improvements, the Personalty, or any other part of the Mortgaged Property, including any awards or settlements resulting from (1) Condemnation Actions, (2) any damage to the Mortgaged Property caused by governmental action
that does not result in a Condemnation Action, or (3) the total or partial taking of the Land, the Improvements, the Personalty, or any other part of the Mortgaged Property under the power of eminent domain or otherwise and including any
conveyance in lieu thereof; 

  

					
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	Kentucky	  	01-11	  	© 2011 Fannie Mae

 (g) contracts, options and other agreements for the sale of the Land, the Improvements, the
Personalty, or any other part of the Mortgaged Property entered into by Borrower now or in the future, including cash or securities deposited to secure performance by parties of their obligations; 

(h) Leases and Lease guaranties, letters of credit and any other supporting obligation for any of the Leases given in connection with any
of the Leases, and all Rents; 
 (i) earnings, royalties, accounts receivable, issues and profits from the Land, the
Improvements or any other part of the Mortgaged Property, and all undisbursed proceeds of the Mortgage Loan and, if Borrower is a cooperative housing corporation, maintenance charges or assessments payable by shareholders or residents; 

(j) Imposition Deposits; 
 (k) refunds or rebates of Impositions by any municipal, state or federal authority or insurance company (other than refunds applicable to periods before the real property tax year in which this Security
Instrument is dated); 
 (l) tenant security deposits; 
 (m) names under or by which any of the above Mortgaged Property may be operated or known, and all trademarks, trade names, and goodwill relating to any of the Mortgaged Property, excluding therefrom the
names “SIR” and “Steadfast” (or any derivation of either such name) and/or trademark rights associated with such names or derivation thereof; 
 (n) Collateral Accounts and all Collateral Account Funds; 
 (o) products, and all
cash and non-cash proceeds from the conversion, voluntary or involuntary, of any of the above into cash or liquidated claims, and the right to collect such proceeds; and 
 (p) all of Borrower’s right, title and interest in the oil, gas, minerals, mineral interests, royalties, overriding royalties, production payments, net profit interests and other interests and
estates in, under and on the Mortgaged Property and other oil, gas and mineral interests with which any of the foregoing interests or estates are pooled or unitized. 
 “Permitted Encumbrance” means only the easements or restrictions listed in a schedule of exceptions to coverage in the Title Policy and Taxes for the current tax year that are not yet due
and payable. 
 “Personalty” means all Goods, accounts, choses of action, chattel paper, documents, general
intangibles (including Software), payment intangibles, instruments, investment property, letter of credit rights, supporting obligations, computer information, source codes, object codes, records and data, all telephone numbers or listings, claims
(including claims for indemnity or breach of warranty), deposit accounts and other property or assets of any kind or nature related to the Land or the Improvements now or in the future, including operating agreements, surveys, plans and
specifications and contracts for architectural, engineering and construction services relating to the Land or the Improvements, and all other intangible property and rights relating to the operation of, or used in connection with, the Land or the
Improvements, including all governmental permits relating to any activities on the Land. 
 “Prepayment
Premium” has the meaning set forth in the Loan Agreement. 
 “Property Jurisdiction” means the
jurisdiction in which the Land is located. 

  

					
	Fannie Mae Multifamily Security Instrument	  	Form 6025.KY	  	Page 4
	Kentucky	  	01-11	  	© 2011 Fannie Mae

 “Rents” means all rents (whether from residential or non-residential
space), revenues and other income from the Land or the Improvements, including subsidy payments received from any sources, including payments under any “Housing Assistance Payments Contract” or other rental subsidy agreement (if any),
parking fees, laundry and vending machine income and fees and charges for food, health care and other services provided at the Mortgaged Property, whether now due, past due, or to become due, and tenant security deposits. 

“Software” means a computer program and any supporting information provided in connection with a transaction relating to
the program. The term does not include any computer program that is included in the definition of Goods. 

“Taxes” means all taxes, assessments, vault rentals and other charges, if any, general, special or otherwise, including
assessments for schools, public betterments and general or local improvements, which are levied, assessed or imposed by any public authority or quasi-public authority, and which, if not paid, may become a lien, on the Land or the Improvements or any
taxes upon any Loan Document. 
 “Title Policy” has the meaning set forth in the Loan Agreement. 

“UCC” means the Uniform Commercial Code in effect in the Property Jurisdiction, as amended from time to time. 

“UCC Collateral” means any or all of that portion of the Mortgaged Property, whether acquired now or in the future, in
which a security interest may be granted under the UCC. 
  

	2.	 Security Agreement; Fixture Filing. 

(a) To secure to Lender, the repayment of the Indebtedness, and all renewals, extensions and modifications thereof, and
the performance of the covenants and agreements of Borrower contained in the Loan Documents, Borrower hereby pledges, assigns, and grants to Lender a continuing security interest in the UCC Collateral. This Security Instrument constitutes a security
agreement and a financing statement under the UCC. This Security Instrument also constitutes a financing statement pursuant to the terms of the UCC with respect to any part of the Mortgaged Property that is or may become a Fixture under applicable
law, and will be recorded as a “fixture filing” in accordance with the UCC. Borrower hereby authorizes Lender to file financing statements, continuation statements and financing statement amendments in such form as Lender may require to
perfect or continue the perfection of this security interest without the signature of Borrower. From and after the occurrence of an Event of Default, Lender shall have the remedies of a secured party under the UCC, in addition to all remedies
provided by this Security Instrument existing under applicable law. Lender may exercise any or all of its remedies against the UCC Collateral separately or together, and in any order, without in any way affecting the availability or validity of
Lender’s other remedies. For purposes of the UCC, the debtor is Borrower and the secured party is Lender. The name and address of the debtor and secured party are set forth after Borrower’s signature below which are the addresses from
which information on the security interest may be obtained. 
 (b) Borrower represents and warrants that:
(1) Borrower maintains its chief executive office at the location set forth after Borrower’s signature below, and Borrower will notify Lender in writing of any change in its chief executive office within five (5) days of such change;
(2) Borrower is (or, as of the closing of the Mortgage Loan, will be) the record owner of the Mortgaged Property; (3) Borrower’s state of incorporation, organization, or formation, if applicable, is as set forth on Page 1 of this
Security Instrument; (4) Borrower’s exact legal name is as set forth on Page 1 of this Security Instrument; (5) Borrower’s organizational identification number, if applicable, is as set forth after Borrower’s signature
below; (6) Borrower is (or, as of the closing of the Mortgage Loan, will be) the owner of the UCC Collateral subject to no liens, charges or encumbrances other than the lien hereof; (7) except for items removed, disposed of and/or replaced
in the ordinary course of Borrower’s business, the UCC Collateral will not be removed from the Mortgaged Property without the consent of Lender; and (8) no financing statement covering any of the UCC Collateral or any proceeds thereof
is on file in any public office except pursuant hereto. 

  

					
	Fannie Mae Multifamily Security Instrument	  	Form 6025.KY	  	Page 5
	Kentucky	  	01-11	  	© 2011 Fannie Mae

 (c) All property of every kind acquired by Borrower after the date of this
Security Instrument which by the terms of this Security Instrument shall be subject to the lien and the security interest created hereby, shall immediately upon the acquisition thereof by Borrower and without further conveyance or assignment become
subject to the lien and security interest created by this Security Instrument. Nevertheless, Borrower shall execute, acknowledge, deliver and record or file, as appropriate, all and every such further deeds of trust, mortgages, deeds to secure debt,
security agreements, financing statements, assignments and assurances as Lender shall require for accomplishing the purposes of this Security Instrument and to comply with the rerecording requirements of the UCC. 

 

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

(a) As part of the consideration for the Indebtedness, Borrower absolutely and unconditionally assigns and transfers to
Lender all Leases and Rents. It is the intention of Borrower to establish present, absolute and irrevocable transfers and assignments to Lender of all Leases and Rents and to authorize and empower Lender to collect and receive all Rents without the
necessity of further action on the part of Borrower. Borrower and Lender intend the assignments of Leases and Rents to be effective immediately and to constitute absolute present assignments, and not assignments for additional security only. Only
for purposes of giving effect to these absolute assignments of Leases and Rents, and for no other purpose, the Leases and Rents shall not be deemed to be a part of the Mortgaged Property. However, if these present, absolute and unconditional
assignments of Leases and Rents are not enforceable by their terms under the laws of the Property Jurisdiction, then each of the Leases and Rents shall be included as part of the Mortgaged Property, and it is the intention of Borrower, in such
circumstance, that this Security Instrument create and perfect a lien on each of the Leases and Rents in favor of Lender, which liens shall be effective as of the date of this Security Instrument. 

(b) Until the occurrence of an Event of Default, but subject to the limitations set forth in the Loan Documents, Borrower
shall have a revocable license to exercise all rights, power and authority granted to Borrower under the Leases (including the right, power and authority to modify the terms of any Lease or extend or terminate any Lease subject to the limitations
set forth in the Loan Documents), and to collect and receive all Rents, to hold all Rents in trust for the benefit of Lender, and to apply all Rents to pay the Monthly Debt Service Payments and the other amounts then due and payable under the other
Loan Documents, including Imposition Deposits, and to pay the current costs and expenses of managing, operating and maintaining the Mortgaged Property, including utilities and Impositions (to the extent not included in Imposition Deposits), tenant
improvements and other capital expenditures. So long as no Event of Default has occurred, the Rents remaining after application pursuant to the preceding sentence may be retained by Borrower free and clear of, and released from, Lender’s rights
with respect to Rents under this Security Instrument. 
 (c) From and after the occurrence of an Event of
Default, without the necessity of Lender entering upon and taking and maintaining control of the Mortgaged Property directly, by a receiver, or by any other manner or proceeding permitted by the laws of the Property Jurisdiction, the revocable
license granted to Borrower pursuant to Section 3(b) shall automatically terminate, and Lender shall immediately have all rights, powers and authority granted to Borrower under any Lease (including the right, power and authority to modify the
terms of any such Lease, or extend or terminate any such Lease) and, without notice, Lender shall be entitled to all Rents as they become due and payable, including Rents then due and unpaid. From and after the occurrence of an Event of Default,
Borrower authorizes Lender to collect, sue for and compromise Rents and directs each tenant of the Mortgaged Property to pay all Rents to, or as directed by, Lender, and Borrower shall, upon Borrower’s receipt of any Rents from any sources, pay
the total amount of such receipts to Lender. Although the foregoing rights of Lender are self-effecting, at any time from and after the occurrence of an Event of Default, Lender may make demand for all Rents, and Lender may give, and Borrower hereby
irrevocably authorizes Lender to give, notice to all tenants of the Mortgaged Property instructing them to pay all Rents to Lender. No tenant shall be obligated to inquire further as to the occurrence or continuance of an Event of Default, and no
tenant shall be obligated to pay to Borrower any amounts that are actually 

  

					
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	Kentucky	  	01-11	  	© 2011 Fannie Mae

 
paid to Lender in response to such a notice. Any such notice by Lender shall be delivered to each tenant personally, by mail or by delivering such demand to each rental unit. 

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

(e) Notwithstanding any other right provided Lender under this Security Instrument or any other Loan Document, if an
Event of Default has occurred, and regardless of the adequacy of Lender’s security or Borrower’s solvency, and without the necessity of giving prior notice (oral or written) to Borrower, Lender may apply to any court having jurisdiction
for the appointment of a receiver for the Mortgaged Property to take any or all of the actions set forth in Section 3. If Lender elects to seek the appointment of a receiver for the Mortgaged Property at any time after an Event of Default has
occurred, Borrower, by its execution of this Security Instrument, expressly consents to the appointment of such receiver, including the appointment of a receiver ex parte, if permitted by applicable law. Borrower consents to shortened time
consideration of a motion to appoint a receiver. Lender or the receiver, as applicable, shall be entitled to receive a reasonable fee for managing the Mortgaged Property and such fee shall become an additional part of the Indebtedness. Immediately
upon appointment of a receiver or Lender’s entry upon and taking possession and control of the Mortgaged Property, possession of the Mortgaged Property and all documents, records (including records on electronic or magnetic media), accounts,
surveys, plans, and specifications relating to the Mortgaged Property, and all security deposits and prepaid Rents, shall be surrendered to Lender or the receiver, as applicable. If Lender takes possession and control of the Mortgaged Property,
Lender may exclude Borrower and its representatives from the Mortgaged Property. 
 (f) The acceptance by Lender
of the assignments of the Leases and Rents pursuant to this Section 3 shall not at any time or in any event obligate Lender to take any action under any Loan Document or to expend any money or to incur any expense. Except to the extent caused
by the gross negligence or willful misconduct of Lender, Lender shall not be liable in any way for any injury or damage to person or property sustained by any Person in, on or about the Mortgaged Property. Prior to Lender’s actual entry upon
and taking possession and control of the Land and Improvements, Lender shall not be: 
 (1)
obligated to perform any of the terms, covenants and conditions contained in any Lease (or otherwise have any obligation with respect to any Lease); 

(2) obligated to appear in or defend any action or proceeding relating to any Lease or the Mortgaged
Property; or 
 (3) responsible for the operation, control, care, management or repair of the
Mortgaged Property or any portion of the Mortgaged Property. 
 The execution of this Security Instrument shall constitute
conclusive evidence that all responsibility for the operation, control, care, management and repair of the Mortgaged Property is and shall be that of Borrower, prior to such actual entry and taking possession and control by Lender of the Land and
Improvements. 

  

					
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	Kentucky	  	01-11	  	© 2011 Fannie Mae

 (g) Lender shall be liable to account only to Borrower and only for Rents
actually received by Lender. Except to the extent caused by the gross negligence or willful misconduct of Lender, Lender shall not be liable to Borrower, anyone claiming under or through Borrower or anyone having an interest in the Mortgaged
Property by reason of any act or omission of Lender under this Section 3, and Borrower hereby releases and discharges Lender from any such liability to the fullest extent permitted by law. If the Rents are not sufficient to meet the costs of
taking control of and managing the Mortgaged Property and collecting the Rents, any funds expended by Lender for such purposes shall be added to, and become a part of, the principal balance of the Indebtedness, be immediately due and payable, and
bear interest at the Default Rate from the date of disbursement until fully paid. Any entering upon and taking control of the Mortgaged Property by Lender or the receiver, and any application of Rents as provided in this Security Instrument, shall
not cure or waive any Event of Default or invalidate any other right or remedy of Lender under applicable law or provided for in this Security Instrument or any Loan Document. 

 

	4.	 Protection of Lender’s Security. 

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

 (a) paying fees and out-of-pocket expenses of attorneys, accountants, inspectors and consultants; 

(b) entering upon the Mortgaged Property to make repairs or secure the Mortgaged Property; 

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

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

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

  

	5.	 No Other Indebtedness and Mezzanine Financing. 

 Other than the Mortgage Loan, Borrower shall not incur or be obligated at any time with respect to any loan or other indebtedness in connection with or secured by the Mortgaged Property. Neither Borrower
nor any owner of Borrower shall (a) incur any “mezzanine debt,” secured or unsecured, or issue any preferred equity that is secured by a pledge of the ownership interests in Borrower or by a pledge of the cash flows of Borrower to the
extent the Transfer of the underlying ownership interests is otherwise prohibited by the Loan Agreement, or (b) incur any similar Indebtedness or equity with respect to the Mortgaged Property or ownership interest in Borrower or any owner of
Key Principal or Guarantor that is secured by a pledge of the cash flows of Borrower to the extent the Transfer of the underlying ownership interests is otherwise prohibited by the Loan Agreement. 

  

					
	Fannie Mae Multifamily Security Instrument	  	Form 6025.KY	  	Page 8
	Kentucky	  	01-11	  	© 2011 Fannie Mae

	6.	 Default; Acceleration; Remedies. 

 (a) From and after the occurrence of an Event of Default, Lender, at its option, may declare the Indebtedness to be immediately due and payable without further demand, and may either with or without entry
or taking possession as herein provided or otherwise, proceed by suit or suits at law or in equity or any other appropriate proceeding or remedy (1) to enforce payment of the Mortgage Loan; (2) to foreclose this Security Instrument
judicially or non-judicially; (3) to enforce or exercise any right under any Loan Document; and (4) to pursue any one (1) or more other remedies provided in this Security Instrument or in any other Loan Document or otherwise afforded
by applicable law. Each right and remedy provided in this Security Instrument or any other Loan Document is distinct from all other rights or remedies under this Security Instrument or any other Loan Document or otherwise afforded by applicable law,
and each shall be cumulative and may be exercised concurrently, independently, or successively, in any order. Borrower has the right to bring an action to assert the nonexistence of an Event of Default or any other defense of Borrower to
acceleration and sale. 
 (b) In connection with any sale made under or by virtue of this Security Instrument,
the whole of the Mortgaged Property may be sold in one (1) parcel as an entirety or in separate lots or parcels at the same or different times, all as Lender may determine in its sole discretion. Lender shall have the right to become the
purchaser at any such sale. In the event of any such sale, the outstanding principal amount of the Mortgage Loan and the other Indebtedness, if not previously due, shall be and become immediately due and payable without demand or notice of any kind.
If the Mortgaged Property is sold for an amount less than the amount outstanding under the Indebtedness, the deficiency shall be determined by the purchase price at the sale or sales. To the extent not prohibited by applicable law, Borrower waives
all rights, claims, and defenses with respect to Lender’s ability to obtain a deficiency judgment. 
 (c)
Borrower acknowledges and agrees that the proceeds of any sale shall be applied as determined by Lender unless otherwise required by applicable law. 
 (d) In connection with the exercise of Lender’s rights and remedies under this Security Instrument and any other Loan Document, there shall be allowed and included as Indebtedness: (1) all
expenditures and expenses authorized by applicable law and all other expenditures and expenses which may be paid or incurred by or on behalf of Lender for reasonable legal fees, appraisal fees, outlays for documentary and expert evidence,
stenographic charges and publication costs; (2) all expenses of any environmental site assessments, environmental audits, environmental remediation costs, appraisals, surveys, engineering studies, wetlands delineations, flood plain studies, and
any other similar testing or investigation deemed necessary or advisable by Lender incurred in preparation for, contemplation of or in connection with the exercise of Lender’s rights and remedies under the Loan Documents; and (3) costs
(which may be reasonably estimated as to items to be expended in connection with the exercise of Lender’s rights and remedies under the Loan Documents) of procuring all abstracts of title, title searches and examinations, title insurance
policies, and similar data and assurance with respect to title as Lender may deem reasonably necessary either to prosecute any suit or to evidence the true conditions of the title to or the value of the Mortgaged Property to bidders at any sale
which may be held in connection with the exercise of Lender’s rights and remedies under the Loan Documents. All expenditures and expenses of the nature mentioned in this Section 6, and such other expenses and fees as may be incurred in the
protection of the Mortgaged Property and rents and income therefrom and the maintenance of the lien of this Security Instrument, including the fees of any attorney employed by Lender in any litigation or proceedings affecting this Security
Instrument, the Note, the other Loan Documents, or the Mortgaged Property, including bankruptcy proceedings, any Foreclosure Event, or in preparation of the commencement or defense of any proceedings or threatened suit or proceeding, or otherwise in
dealing specifically therewith, shall be so much additional Indebtedness and shall be immediately due and payable by Borrower, with interest thereon at the Default Rate until paid. 

  

					
	Fannie Mae Multifamily Security Instrument	  	Form 6025.KY	  	Page 9
	Kentucky	  	01-11	  	© 2011 Fannie Mae

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

 

	7.	 Waiver of Statute of Limitations and Marshaling. 

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

	8.	 Waiver of Redemption; Rights of Tenants. 

(a) Borrower hereby covenants and agrees that it will not at any time apply for, insist upon, plead, avail itself, or in
any manner claim or take any advantage of, any appraisement, stay, exemption or extension law or any so-called “Moratorium Law” now or at any time hereafter enacted or in force in order to prevent or hinder the enforcement or foreclosure
of this Security Instrument. Without limiting the foregoing: 
 (1) Borrower, for itself and all
Persons who may claim by, through or under Borrower, hereby expressly waives any so-called “Moratorium Law” and any and all rights of reinstatement and redemption, if any, under any order or decree of foreclosure of this Security
Instrument, it being the intent hereof that any and all such “Moratorium Laws”, and all rights of reinstatement and redemption of Borrower and of all other Persons claiming by, through or under Borrower are and shall be deemed to be hereby
waived to the fullest extent permitted by the laws of the Property Jurisdiction; 
 (2) Borrower
shall not invoke or utilize any such law or laws or otherwise hinder, delay or impede the execution of any right, power remedy herein or otherwise granted or delegated to Lender but will suffer and permit the execution of every such right, power and
remedy as though no such law or laws had been made or enacted; and 
 (3) if Borrower is a trust,
Borrower represents that the provisions of this Section 8 (including the waiver of reinstatement and redemption rights) were made at the express direction of Borrower’s beneficiaries and the persons having the power of direction over
Borrower, and are made on behalf of the trust estate of Borrower and all beneficiaries of Borrower, as well as all other persons mentioned above. 

  

					
	Fannie Mae Multifamily Security Instrument	  	Form 6025.KY	  	Page 10
	Kentucky	  	01-11	  	© 2011 Fannie Mae

 (b) Lender shall have the right to foreclose subject to the rights of any
tenant or tenants of the Mortgaged Property having an interest in the Mortgaged Property prior to that of Lender. The failure to join any such tenant or tenants of the Mortgaged Property as party defendant or defendants in any such civil action or
the failure of any decree of foreclosure and sale to foreclose their rights shall not be asserted by Borrower as a defense in any civil action instituted to collect the Indebtedness, or any part thereof or any deficiency remaining unpaid after
foreclosure and sale of the Mortgaged Property, any statute or rule of law at any time existing to the contrary notwithstanding. 
  

	9.	 Notice. 

 (a) All notices under this Security Instrument shall be: 
 (1) in writing, and shall be (A) delivered, in person, (B) mailed, postage prepaid, either by registered or certified delivery, return receipt requested, or (C) sent by overnight express
courier; 
 (2) addressed to the intended recipient at its respective address set forth at the
end of this Security Instrument; and 
 (3) deemed given on the earlier to occur of: 

(A) the date when the notice is received by the addressee; or 

(B) if the recipient refuses or rejects delivery, the date on which the notice is so refused or rejected,
as conclusively established by the records of the United States Postal Service or such express courier service. 

(b) Any party to this Security Instrument may change the address to which notices intended for it are to be directed by
means of notice given to the other party in accordance with this Section 9. 
 (c) Any required notice
under this Security Instrument which does not specify how notices are to be given shall be given in accordance with this Section 9. 
 (d) Lender shall endeavor to give Borrower’s counsel a courtesy copy of any notice given to Borrower by Lender, at the address set forth below; provided, however, failure to provide such courtesy
copy notice shall not affect the validity or sufficiency of any notice to Borrower, shall not affect Lender’s rights and remedies hereunder or under any other Loan Documents, nor subject Lender to any claim by or liability to Borrower.

 Katten Muchin Rosenman LLP 

2900 K. Street NW, Suite 200 
 Washington, DC 20007-5118 
 Attn: Virginia Davis 

 

	10.	 Mortgagee-in-Possession. 

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

  

					
	Fannie Mae Multifamily Security Instrument	  	Form 6025.KY	  	Page 11
	Kentucky	  	01-11	  	© 2011 Fannie Mae

	11.	 Release. 

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

 

	12.	 Future Advances. 

 For purposes of KRS 382.520, it is acknowledged and agreed that this Security Instrument secures not only the initial advance under the Note but also all future advances and all other additional
indebtedness of Borrower to Lender, whether direct, indirect, future, contingent or otherwise, arising out of the Loan Documents to the extent of not more than two hundred percent (200%) of the original principal amount of the Note, exclusive
of interest, costs of collection or foreclosure, or advances made to protect the security of the Mortgaged Property. The preceding sentence shall not limit the amount secured by this Security Instrument if such amount is increased by accrued
interest, advances made by Lender pursuant to this Security Instrument to protect the security, or costs of collection and foreclosure. It shall be a default under this Security Instrument if Borrower requests a release, in the manner provided by
KRS 382.520, of any portion of the lien securing any of such additional indebtedness prior to the date that all of the Indebtedness has been paid and the Loan Documents have been terminated, and Borrower hereby waives any and all right to
request such a release to the maximum extent permitted by law. 
  

	13.	 Governing Law; Consent to Jurisdiction and Venue. 

 This Security Instrument shall be governed by the laws of the Property Jurisdiction without giving effect to any choice of law provisions thereof that would result in the application of the laws of
another jurisdiction. Borrower agrees that any controversy arising under or in relation to this Security Instrument shall be litigated exclusively in the Property Jurisdiction. The state and federal courts and authorities with jurisdiction in the
Property Jurisdiction shall have exclusive jurisdiction over all controversies that arise under or in relation to any security for the Indebtedness. Borrower irrevocably consents to service, jurisdiction, and venue of such courts for any such
litigation and waives any other venue to which it might be entitled by virtue of domicile, habitual residence or otherwise. 
  

	14.	 Miscellaneous Provisions. 

 (a) This Security Instrument shall bind, and the rights granted by this Security Instrument shall benefit, the successors and assigns of Lender. This Security Instrument shall bind, and the obligations
granted by this Security Instrument shall inure to, any permitted successors and assigns of Borrower under the Loan Agreement. If more than one (1) person or entity signs this Security Instrument as Borrower, the obligations of such persons and
entities shall be joint and several. The relationship between Lender and Borrower shall be solely that of creditor and debtor, respectively, and nothing contained in this Security Instrument shall create any other relationship between Lender and
Borrower. No creditor of any party to this Security Instrument and no other person shall be a third party beneficiary of this Security Instrument or any other Loan Document. 

(b) The invalidity or unenforceability of any provision of this Security Instrument or any other Loan Document shall not
affect the validity or enforceability of any other provision of this Security Instrument or of any other Loan Document, all of which shall remain in full force and effect. This Security Instrument contains the complete and entire agreement among the
parties as to the matters covered, rights granted and the obligations assumed in this Security Instrument. This Security Instrument may not be amended or modified except by written agreement signed by the parties hereto. 

(c) The following rules of construction shall apply to this Security Instrument: 

  

					
	Fannie Mae Multifamily Security Instrument	  	Form 6025.KY	  	Page 12
	Kentucky	  	01-11	  	© 2011 Fannie Mae

 (1) The captions and headings of the sections of this
Security Instrument are for convenience only and shall be disregarded in construing this Security Instrument. 
 (2) Any reference in this Security Instrument to an “Exhibit” or “Schedule” or a “Section” or an “Article” shall, unless otherwise explicitly provided, be construed
as referring, respectively, to an exhibit or schedule attached to this Security Instrument or to a Section or Article of this Security Instrument. 

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

(6) Whenever Borrower’s knowledge is implicated in this Security Instrument or the phrase “to
Borrower’s knowledge” or a similar phrase is used in this Security Instrument, Borrower’s knowledge or such phrase(s) shall be interpreted to mean to the best of Borrower’s knowledge after reasonable and diligent inquiry and
investigation. 
 (7) Unless otherwise provided in this Security Instrument, if Lender’s
approval is required for any matter hereunder, such approval may be granted or withheld in Lender’s sole and absolute discretion. 
 (8) Unless otherwise provided in this Security Instrument, if Lender’s designation, determination, selection, estimate, action or decision is required, permitted or contemplated hereunder, such
designation, determination, selection, estimate, action or decision shall be made in Lender’s sole and absolute discretion. 
 (9) All references in this Security Instrument to a separate instrument or agreement shall include such instrument or agreement as the same may be amended or supplemented from time to time pursuant to the
applicable provisions thereof. 
 (10) “Lender may” shall mean at Lender’s
discretion, but shall not be an obligation. 
  

	15.	 Time is of the Essence. 

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

 

	16.	 WAIVER OF TRIAL BY JURY. 

 TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, EACH OF BORROWER AND LENDER (BY ITS ACCEPTANCE HEREOF) (A) COVENANTS AND AGREES NOT TO ELECT A TRIAL BY JURY WITH RESPECT TO ANY ISSUE ARISING
OUT OF THIS SECURITY INSTRUMENT OR THE RELATIONSHIP BETWEEN THE PARTIES AS BORROWER AND LENDER THAT IS TRIABLE OF RIGHT BY A JURY AND (B) WAIVES ANY RIGHT TO TRIAL BY JURY WITH RESPECT TO SUCH ISSUE TO THE EXTENT THAT ANY SUCH RIGHT EXISTS NOW
OR IN THE FUTURE. THIS 

  

					
	Fannie Mae Multifamily Security Instrument	  	Form 6025.KY	  	Page 13
	Kentucky	  	01-11	  	© 2011 Fannie Mae

 
WAIVER OF RIGHT TO TRIAL BY JURY IS SEPARATELY GIVEN BY EACH OF BORROWER AND LENDER, KNOWINGLY AND VOLUNTARILY WITH THE BENEFIT OF COMPETENT LEGAL COUNSEL. 

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

  

					
	 x
	  	 Exhibit A
	  	 Description of the Land (required)

			
	  ̈
	  	 Exhibit B
	  	 Modifications to Security Instrument

 [Remainder of Page Intentionally Blank] 

  

					
	Fannie Mae Multifamily Security Instrument	  	Form 6025.KY	  	Page 14
	Kentucky	  	01-11	  	© 2011 Fannie Mae

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

					
	BORROWER:
	
	 SIR COOPER CREEK, LLC,
 a Delaware limited liability company

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

			
		 	 By:
	 	 /s/ Rodney F. Emery

		 		 	 Rodney F. Emery,

		 		 	 Chief Executive Officer, President and

		 		 	 Chairman of the Board

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

	 Debtor Name/Record Owner: SIR COOPER CREEK, LLC

	  
 Debtor Chief Executive Office
Address:
 18100 Von Karman Avenue, Suite 500
 Irvine, Orange County, California 92612
 Debtor Organizational ID Number:
5013060

	  
 The name and chief executive office of Lender (as
Secured Party) are:

	 Secured Party Name: PNC BANK, NATIONAL ASSOCIATION

 

	 Secured Party Chief Executive Office Address:
 26901 Agoura Rd., Suite 200

Calabasas Hills, Los Angeles County, California 91301

  

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

 ACKNOWLEDGEMENT 

 

					
	 STATE OF CALIFORNIA
	  	 )
	  	
		  	 )
	  	 SS.

	 COUNTY OF ORANGE
	  	 )
	  	

 On August 17, 2011, before me, Mona Salama, a Notary Public, personally appeared Rodney F.
Emery, who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the
instrument the person, or the entity upon behalf of which the person acted, executed the instrument. 
 I certify under penalty
of perjury under the laws of the State of California that the foregoing paragraph is true and correct. 
 WITNESS my hand and
official seal. 
  

	
	 /s/ Mona Salama

	 Notary Public

 [Seal] 

  

					
	Fannie Mae Multifamily Security Instrument	  	Form 6025.KY	  	
	Kentucky	  	01-11	  	© 2011 Fannie Mae

 EXHIBIT A 
 DESCRIPTION OF THE LAND 
 Beginning at an existing Pin at the Southwest corner of
High School Drive and Preston Highway; thence along the westerly right of way line of Preston Highway, on a curve to the right with a radius of 11,421.16 feet and a chord of S18o51’29”E, 416.44 feet to an existing pin; thence along
said right of way line S00o02’50”W, 156.42 feet to an existing pin; thence along said right of way line, on a curve to the right with a radius of 11,374.16 feet and a chord of S16o18’48”E, 297.77 feet to a set pin,
thence along said right of way line S32o14”41”E, 51.88 feet to a set pin; thence along said right of way line S26o33’44”E, 50.71 feet to a set P.K. Nail; thence along said right of way line on a curve to the right of a
radius of 11,399.16 feet and a chord of S14o26’18”E, 248.69 feet to an existing pin; thence along said right of way line S02o20’00”E, 50.77 feet to an existing pin; thence along said right of way line,
S13o36’44”E, 31.76 feet to a point; thence along the Northerly line of the Schmitt tract of record in Deed Book 6669, Pg. 976 in the Office of the County Court Clerk of Jefferson County, Kentucky; N83o37’51”W, 394.70
feet an existing pin; thence along the easterly line of the Turner tract of record in Deed Book 7112, Pg. 548, in the aforesaid Clerk’s Office, N13o39’09”W, 162.48 feet to a 2” pipe 16” above grade and being the
Northeast corner of the Logan tract of record in Deed Book 5489, Pg. 290 in the aforesaid Clerk’s Office, N62o35’21”W, 282.96 feet to an existing pin; and being the Northerly corner of the Thorton tract of record in Deed Book
6593, Pg. 578 in the aforesaid Clerk’s Office; thence N53o10’55”W, 130.23 feet to a set pin; thence along the Southeasterly line of a tract conveyed to Potter by Deed of record in Deed Book 6677, Pg. 63 in the aforesaid
Clerk’s Office, N37o07’00”E, 150.27 feet to an existing pin; thence along the line of a tract conveyed to Gauthier by Deed of record in Deed Book 7062, Pg. 784 in the aforesaid Clerk’s Office, N53o17’00”W,
150.00 feet to an existing #4 rebar set in concrete; said point being in the Southeasterly line of High School Drive of record in Deed Book 2640, Pg. 366 in the aforesaid Clerk’s Office, thence with the line of High School Drive
N37o07’00”W, 30.00 feet to an existing pin; thence with the line of a tract conveyed to Brown by Deed of record in Deed Book 7000, Pg. 419 in the aforesaid Clerk’s Office, S53o17’00”E, 150.00 feet to an existing
pin; thence with the line of the aforesaid Brown tract, N37o07’00”E, 225.00 feet to a set pin; thence with the line of a tract conveyed to Jones by Deed of record in Deed Book 5686, Pg. 871 in the aforesaid Clerk’s Office,
N53o17’00”W, 150.00 feet to an existing pin #4 rebar set in concrete; said point being in the said Southeasterly line of High School Drive, thence with the said line N37o07’00”E, 533.15 feet to the point of beginning
containing 11.13 Acres. 
 Being the same property conveyed to SIR Cooper Creek, LLC, a Delaware limited liability company, by Special Warranty
Deed dated August 24, 2011, of record in Deed Book             , Page             , in the Office of the Clerk of Jefferson
County, Kentucky. 
 The following is provided as an accommodation for informational purposes only. No insurance is provided over the same:

 Current Parcel ID No: 23065100280000 

  

					
	Fannie Mae Multifamily Security Instrument	  	Form 6025.KY	  	
	Kentucky	  	01-11	  	© 2011 Fannie MaeGuaranty of Non-Recourse Obligations

 Exhibit 10.5 

GUARANTY OF NON-RECOURSE OBLIGATIONS 
 This GUARANTY OF NON-RECOURSE OBLIGATIONS (this “Guaranty”), dated as of August 24, 2011, is executed by the undersigned (“Guarantor”), to and for the benefit of PNC
BANK, NATIONAL ASSOCIATION, a national banking association (“Lender”). 
 RECITALS: 

A. Pursuant to that certain Multifamily Loan and Security Agreement dated as of the date hereof, by and between SIR
COOPER CREEK, LLC, a Delaware limited liability company (“Borrower”), and Lender (as amended, restated, replaced, supplemented or otherwise modified from time to time, the “Loan Agreement”), Lender is making a loan
to Borrower in the original principal amount of Six Million Seven Hundred Seventy-Three Thousand and 00/100 Dollars ($6,773,000.00) (the “Mortgage Loan”), as evidenced by that certain Multifamily Note dated as of the date hereof,
executed by Borrower and made payable to the order of Lender in the amount of the Mortgage Loan (as amended, restated, replaced, supplemented or otherwise modified from time to time, the “Note”). 

B. The Note will be secured by, among other things, a Security Instrument (as defined in the Loan Agreement) encumbering
the real property described in the Security Instrument (the “Property”). 
 C. Guarantor has an
economic interest in Borrower or will otherwise obtain a material financial benefit from the Mortgage Loan. 

D. As a condition to making the Mortgage Loan to Borrower, Lender requires that Guarantor execute this Guaranty.

 NOW, THEREFORE, in order to induce Lender to make the Mortgage Loan to Borrower, and in consideration
thereof, Guarantor agrees as follows: 
 AGREEMENTS: 

 

	1.	 Recitals. 

 The recitals set forth above are incorporated herein by reference as if fully set forth in the body of this Guaranty. 
  

	2.	 Defined Terms. 

 Capitalized terms used and not specifically defined herein have the meanings given to such terms in the Loan Agreement. 
  

	3.	 Guaranteed Obligations. 

 Guarantor hereby absolutely, unconditionally and irrevocably guarantees to Lender the full and prompt payment and performance when due, whether at maturity or earlier, by reason of acceleration or
otherwise, and at all times thereafter, of: 
 (a) all amounts, obligations and liabilities owed to Lender under
Article 3 (Personal Liability) of the Loan Agreement (including the payment and performance of all indemnity obligations of Borrower described in Section 3.03 (Personal Liability for Indemnity Obligations) of the Loan Agreement and
including all of Borrower’s obligations under the Environmental Indemnity Agreement); and 

  

					
	Guaranty of Non-Recourse Obligations	  	Form 6015	  	Page 1
	Fannie Mae	  	04-11	  	© 2011 Fannie Mae

 (b) all costs and expenses, including reasonable fees and out-of-pocket
expenses of attorneys and expert witnesses, incurred by Lender in enforcing its rights under this Guaranty. 
  

	4.	 Survival of Guaranteed Obligations. 

The obligations of Guarantor under this Guaranty shall survive any Foreclosure Event, and any recorded release or
reconveyance of the Security Instrument or any release of any other security for any of the Indebtedness; provided, however, that notwithstanding anything to the contrary herein, Guarantor’s liability to Lender shall not include any loss,
liability or expense arising or occurring from and after the date of the Foreclosure Event which relates to actions or omissions of Lender or any future assignee or holder of the Note occurring after such Foreclosure Event, as finally determined by
a court of law holding jurisdiction over such matters. 
  

	5.	 Guaranty of Payment; Community Property. 

Guarantor’s obligations under this Guaranty constitute a present and unconditional guaranty of payment and not merely
a guaranty of collection. If Guarantor (or any Guarantor, if more than one) is a married person, and the state of residence of Guarantor or Guarantor’s spouse is a community property jurisdiction, Guarantor (or each such married Guarantor, if
more than one) agrees that Lender may satisfy Guarantor’s obligations under this Guaranty to the extent of all Guarantor’s separate property and Guarantor’s interest in any community property. 

 

	6.	 Obligations Unsecured; Cross-Default. 

The obligations of Guarantor under this Guaranty shall not be secured by the Security Instrument or the Loan Agreement.
However, a default under this Guaranty shall be an Event of Default under the Loan Agreement, and a default under this Guaranty shall entitle Lender to be able to exercise all of its rights and remedies under the Loan Agreement and other Loan
Documents. 
  

	7.	 Continuing Guaranty. 

 The obligations of Guarantor under this Guaranty shall be unconditional irrespective of the genuineness, validity, regularity or enforceability of any provision of this Guaranty, the Note, the Loan
Agreement, the Security Instrument or any other Loan Document. Guarantor agrees that performance of the obligations hereunder shall be a primary obligation, shall not be subject to any counterclaim, set-off, recoupment, abatement, deferment or
defense based upon any claim that Guarantor may have against Lender, Borrower, any other guarantor of the obligations hereunder or any other person or entity, and shall remain in full force and effect without regard to, and shall not be released,
discharged or affected in any way by any circumstance or condition (whether or not Guarantor shall have any knowledge thereof), including: 
 (a) any furnishing, exchange, substitution or release of any collateral securing repayment of the Mortgage Loan, or any failure to perfect any lien in such collateral; 

(b) any failure, omission or delay on the part of Borrower, Guarantor, any other guarantor of the obligations hereunder
or Lender to conform or comply with any term of any of the Loan Documents or failure of Lender to give notice of any Event of Default; 
 (c) any action or inaction by Lender under or in respect of any of the Loan Documents, any failure, lack of diligence, omission or delay on the part of Lender to perfect, enforce, assert or exercise any
lien, security interest, right, power or remedy conferred upon it in any of the Loan Documents, or any other action or inaction on the part of Lender; 
 (d) any Bankruptcy Event, or any voluntary or involuntary bankruptcy, insolvency, reorganization, arrangement, readjustment, assignment for the benefit of creditors, composition, receivership,
liquidation, marshaling of assets and liabilities or similar events or proceedings with respect to Guarantor or any other guarantor of the 

  

					
	Guaranty of Non-Recourse Obligations	  	Form 6015	  	Page 2
	Fannie Mae	  	04-11	  	© 2011 Fannie Mae

 
obligations hereunder, or any of their respective property or creditors or any action taken by any trustee or receiver or by any court in such proceeding; 

(e) any merger or consolidation of Borrower into or with any entity or any sale, lease or Transfer of any asset of
Borrower, Guarantor or any other guarantor of the obligations hereunder to any other Person; 
 (f) any change
in the ownership of Borrower or any change in the relationship between Borrower, Guarantor or any other guarantor of the obligations hereunder, or any termination of such relationship; 

(g) any release or discharge by operation of law of Borrower, Guarantor or any other guarantor of the obligations
hereunder, any obligation or agreement contained in any of the Loan Documents; or 
 (h) any other occurrence,
circumstance, happening or event, whether similar or dissimilar to the foregoing, and whether seen or unforeseen, which otherwise might constitute a legal or equitable defense or discharge of the liabilities of a guarantor or surety or which
otherwise might limit recourse against Borrower or Guarantor to the fullest extent permitted by law. 
  

	8.	 Guarantor Waivers. 

 Guarantor hereby waives: 
 (a) the benefit of all principles or
provisions of law, statutory or otherwise, which are or might be in conflict with the terms of this Guaranty (and agrees that Guarantor’s obligations shall not be affected by any circumstances, whether or not referred to in this Guaranty, which
might otherwise constitute a legal or equitable discharge of a surety or a guarantor); 
 (b) the benefits of
any right of discharge under any and all statutes or other laws relating to guarantors or sureties and any other rights of sureties and guarantors; 
 (c) diligence in collecting the Indebtedness, presentment, demand for payment, protest and all notices with respect to the Loan Documents and this Guaranty which may be required by statute, rule of law or
otherwise to preserve Lender’s rights against Guarantor under this Guaranty, including notice of acceptance, notice of any amendment of the Loan Documents, notice of the occurrence of any default or Event of Default, notice of intent to
accelerate, notice of acceleration, notice of dishonor, notice of foreclosure, notice of protest and notice of the incurring by Borrower of any obligation or indebtedness; and 

(d) all rights to require Lender to: 

(1) proceed against or exhaust any collateral held by Lender to secure the repayment of the Indebtedness;

 (2) proceed against or pursue any remedy it may now or hereafter have against Borrower or any
guarantor, or, if Borrower or any guarantor is a partnership, any general partner of Borrower or general partner of any guarantor; or 
 (3) demand or require collateral security from Borrower, any other guarantor or any other Person as provided by applicable law or otherwise. 

 

	9.	 No Effect Upon Obligations. 

 At any time or from time to time and any number of times, without notice to Guarantor and without releasing, discharging or affecting the liability of Guarantor: 

  

					
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 (a) the time for payment of the principal of or interest on the Indebtedness
may be extended or the Indebtedness may be renewed in whole or in part; 
 (b) the rate of interest on or period
of amortization of the Mortgage Loan or the amount of the Monthly Debt Service Payments payable under the Loan Documents may be modified; 
 (c) the time for Borrower’s performance of or compliance with any covenant or agreement contained in any Loan Document, whether presently existing or hereinafter entered into, may be extended or such
performance or compliance may be waived; 
 (d) the maturity of the Indebtedness may be accelerated as provided
in the Loan Documents; 
 (e) any or all payments due under the Loan Agreement or any other Loan Document may be
reduced; 
 (f) any Loan Document may be modified or amended by Lender and Borrower in any respect, including an
increase in the principal amount of the Mortgage Loan; 
 (g) any amounts under the Loan Agreement or any other
Loan Document may be released; 
 (h) any security for the Indebtedness may be modified, exchanged, released,
surrendered or otherwise dealt with or additional security may be pledged or mortgaged for the Indebtedness; 

(i) the payment of the Indebtedness or any security for the Indebtedness, or both, may be subordinated to the right to
payment or the security, or both, of any other present or future creditor of Borrower; 
 (j) any payments made
by Borrower to Lender may be applied to the Indebtedness in such priority as Lender may determine in its discretion; and 
 (k) any other terms of the Loan Documents may be modified as required by Lender. 
  

	10.	 Joint and Several (or Solidary) Liability. 

If more than one Person executes this Guaranty as Guarantor, such Persons shall be liable for the obligations hereunder on
a joint and several (solidary instead for purposes of Louisiana law) basis. Lender, in its discretion, may: 

(a) to the extent permitted by applicable law, bring suit against Guarantor, or any one or more of the Persons
constituting Guarantor, and any other guarantor, jointly and severally (solidarily instead for purposes of Louisiana law), or against any one or more of them; 
 (b) compromise or settle with any one or more of the Persons constituting Guarantor, or any other guarantor, for such consideration as Lender may deem proper; 

(c) discharge or release one or more of the Persons constituting Guarantor, or any other guarantor, from liability or
agree not to sue such Person; and 
 (d) otherwise deal with Guarantor and any guarantor, or any one or more of
them, in any manner, and no such action shall impair the rights of Lender to collect from Guarantor any amount guaranteed by Guarantor under this Guaranty. 
 Nothing contained in this Section 10 shall in any way affect or impair the rights or obligations of Guarantor with respect to any other guarantor. 

  

					
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	11.	 Subordination of Affiliated Debt. 

 Any indebtedness of Borrower held by Guarantor now or in the future is and shall be subordinated to the Indebtedness and any such indebtedness of Borrower shall be collected, enforced and received by
Guarantor, as trustee for Lender, but without reducing or affecting in any manner the liability of Guarantor under the other provisions of this Guaranty. 
  

	12.	 Subrogation. 

 Guarantor shall have no right of, and hereby waives any claim for, subrogation or reimbursement against Borrower or any general partner of Borrower by reason of any payment by Guarantor under this
Guaranty, whether such right or claim arises at law or in equity or under any contract or statute, until the Indebtedness has been paid in full and there has expired the maximum possible period thereafter during which any payment made by Borrower to
Lender with respect to the Indebtedness could be deemed a preference under the Insolvency Laws. 
  

	13.	 Voidable Transfer. 

 If any payment by Borrower is held to constitute a preference under any Insolvency Laws or similar laws, or if for any other reason Lender is required to refund any sums to Borrower, such refund shall not
constitute a release of any liability of Guarantor under this Guaranty. It is the intention of Lender and Guarantor that Guarantor’s obligations under this Guaranty shall not be discharged except by Guarantor’s performance of such
obligations and then only to the extent of such performance. If any payment by any Guarantor should for any reason subsequently be declared to be void or voidable under any state or federal law relating to creditors’ rights, including
provisions of the Insolvency Laws relating to a Voidable Transfer, and if Lender is required to repay or restore, in whole or in part, any such Voidable Transfer, or elects to do so upon the advice of its counsel, then the obligations guaranteed
hereunder shall automatically be revived, reinstated and restored by the amount of such Voidable Transfer or the amount of such Voidable Transfer that Lender is required or elects to repay or restore, including all reasonable costs, expenses and
legal fees incurred by Lender in connection therewith, and shall exist as though such Voidable Transfer had never been made, and any other guarantor, if any, shall remain liable for such obligations in full. 

 

	14.	 Credit Report/Credit Score. 

 Guarantor acknowledges and agrees that Lender is authorized, no more frequently than once in any twelve (12) month period, to obtain a credit report (if applicable) on Guarantor, the cost of which
shall be paid for by Guarantor. Guarantor acknowledges and agrees that Lender is authorized to obtain a Credit Score (if applicable) for Guarantor at any time at Lender’s expense. 

 

	15.	 Financial Reporting. 

 Guarantor shall deliver to Lender such Guarantor financial statements as required by Section 8.02 (Books and Records; Financial Reporting – Covenants) of the Loan Agreement. 

 

	16.	 Further Assurances. 

 .1 Guarantor acknowledges that Lender (including its successors and assigns) may sell or transfer the Mortgage Loan, or any interest in the Mortgage Loan. 

(a) Guarantor shall: 

(1) do anything necessary to comply with the requirements of Lender or any Investor of the Mortgage Loan
or provide, or cause to be provided, to Lender or any Investor of the Mortgage Loan, at Borrower’s and Guarantor’s cost and expense, such further documentation or information required by Lender or Investor, in order to enable: 

  

					
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 (A) Lender to sell the Mortgage Loan to such Investor;

 (B) Lender to obtain a refund of any commitment fee from any such Investor; or 

(C) any such Investor to further sell or securitize the Mortgage Loan; 

(2) confirm that Guarantor is not in default under this Guaranty or in observing any of the covenants or
agreements contained in this Guaranty (or, if Guarantor is in default, describing such default in reasonable detail); and 
 (3) execute and deliver to Lender and/or any Investor such other documentation, including any amendments, corrections, deletions or additions to this Guaranty as is required by Lender or such Investor.

 (b) Nothing in this Section 16 shall require Guarantor to do any further act that has the effect of:

 (1) changing the economic terms of the Mortgage Loan set forth in the related commitment
letter between Borrower and Lender; 
 (2) imposing on Borrower or Guarantor greater personal
liability under the Loan Documents than that set forth in the related commitment letter between Borrower and Lender; 
 (3) increasing any obligation undertaken or imposed on Borrower or Guarantor under the Loan Documents; or 

(4) materially changing the applicability, scope or effect of any covenant, condition or restriction from
that contained in the Loan Documents. 
  

	17.	 Successors and Assigns. 

 Lender may assign its rights under this Guaranty in whole or in part and, upon any such assignment, all the terms and provisions of this Guaranty shall inure to the benefit of such assignee to the extent
so assigned. Guarantor may not assign its rights, duties and obligations under this Guaranty, in whole or in part, without Lender’s prior written consent and any such assignment shall be deemed void ab initio. The terms used to designate any of
the parties herein shall be deemed to include the heirs, legal representatives, successors and assigns of such parties. 
  

	18.	 Final Agreement. 

 Guarantor acknowledges receipt of a copy of each of the Loan Documents and this Guaranty. THIS GUARANTY REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES WITH RESPECT TO THE SUBJECT MATTER HEREOF AND MAY
NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES. All prior or contemporaneous agreements, understandings, representations and statements, oral or
written, are merged into this Guaranty. Neither this Guaranty nor any of its provisions may be waived, modified, amended, discharged or terminated except by an agreement in writing signed by the party against which the enforcement of the waiver,
modification, amendment, discharge or termination is sought, and then only to the extent set forth in that agreement. 
  

	19.	 Governing Law. 

 This Guaranty shall be governed by and construed in accordance with the substantive law of the Property Jurisdiction without regard to the application of choice of law principles that would result in the
application of the laws of another jurisdiction. 

  

					
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	20.	 Property Jurisdiction. 

 Guarantor agrees that any controversy arising under or in relation to this Guaranty shall be litigated exclusively in the Property Jurisdiction. The state and federal courts and authorities with
jurisdiction in the Property Jurisdiction shall have exclusive jurisdiction over all controversies which shall arise under or in relation to this Guaranty or any other Loan Document with respect to the subject matter hereof. Guarantor 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. 

 

	21.	 Time is of the Essence. 

 Guarantor agrees that, with respect to each and every obligation and covenant contained in this Guaranty, time is of the essence. 

 

	22.	 Notices. 

 Guarantor agrees to notify Lender of any change in Guarantor’s address within ten (10) Business Days after such change of address occurs. All “Notices” under this Guaranty shall be:

 (a) in writing and shall be 

(1) delivered, in person; 

(2) mailed, postage prepaid, either by registered or certified delivery, return receipt requested;

 (3) sent by overnight courier; or 

(4) sent by electronic mail with originals to follow by overnight courier; 

(b) addressed to the intended recipient at the notice addresses provided under the signature block at the end of this
Guaranty; and 
 (c) deemed given on the earlier to occur of: 

(1) the date when the Notice is received by the addressee; or 

(2) if the recipient refuses or rejects delivery, the date on which the Notice is so refused or rejected,
as conclusively established by the records of the United States Postal Service or such express courier service. 
 Lender shall
endeavor to give Guarantor’s counsel a courtesy copy of any notice given to Guarantor by Lender, at such counsel’s address provided on the signature page of this Guaranty; provided, however, failure to provide such courtesy copy notice
shall not affect the validity or sufficiency of any notice to Guarantor, shall not affect Lender’s rights and remedies hereunder or under any other Loan Documents, nor subject Lender any claim by or liability to Guarantor. 

 

	23.	 Construction. 

 (a) Any reference in this Guaranty to an “Exhibit” or “Schedule” or a “Section” or an “Article” shall, unless otherwise explicitly provided, be construed as
referring, respectively, to an exhibit or schedule attached to this Guaranty or to a Section or Article of this Guaranty. 

  

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

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

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

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

 

	24.	 WAIVER OF JURY TRIAL. 

 TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, EACH OF GUARANTOR AND LENDER (A) AGREES NOT TO ELECT A TRIAL BY JURY WITH RESPECT TO ANY ISSUE ARISING OUT OF THIS GUARANTY OR ANY LOAN DOCUMENT
OR THE RELATIONSHIP BETWEEN THE PARTIES AS GUARANTOR AND LENDER THAT IS TRIABLE OF RIGHT BY A JURY AND (B) WAIVES ANY RIGHT TO TRIAL BY JURY WITH RESPECT TO SUCH ISSUE TO THE EXTENT THAT ANY SUCH RIGHT EXISTS NOW OR IN THE FUTURE. THIS WAIVER
OF RIGHT TO TRIAL BY JURY IS SEPARATELY GIVEN BY GUARANTOR AND LENDER, KNOWINGLY AND VOLUNTARILY WITH THE BENEFIT OF COMPETENT LEGAL COUNSEL. 
  

	25.	 Schedules. 

 The schedules, if any, attached to this Guaranty are incorporated fully into this Guaranty by this reference and each constitutes a substantive part of this Guaranty. 

ATTACHED SCHEDULE. The following Schedule is attached to this Guaranty: 

 

					
	                           x
	  	
                              
Schedule 1
	  	                     Modifications to
Guaranty

 [Remainder of Page Intentionally Blank] 

 

  

					
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 IN WITNESS WHEREOF, Guarantor has signed and delivered this Guaranty
under seal (where applicable) or has caused this Guaranty to be signed and delivered under seal (where applicable) by its duly authorized representative. Where applicable law so provides, Guarantor intends that this Guaranty shall be deemed to be
signed and delivered as a sealed instrument. 
  

			
	GUARANTOR:
	
	 STEADFAST INCOME REIT, INC.,
 a Maryland corporation

		
	 By:
	  	 /s/ Rodney F. Emery

	 Name:
	  	 Rodney F. Emery

	 Title:
	  	 Chief Executive Officer and President

	
	 Address for Notices to Guarantor:

	
	 18100 Von Karman Avenue, Suite 500

	 Irvine, Orange County, California 92612

Email address: remery@steadfastcompanies.com

	
	 with a courtesy copy to Guarantor’s counsel at:

 
 Katten Muchin Rosenman LLP

2900 K. Street NW, Suite 200
 Washington, DC 20007-5118
 Attn: Virginia Davis

Email addresses: Virginia.davis@kattenlaw.com

  

					
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 SCHEDULE 1 TO 
 GUARANTY OF NON-RECOURSE OBLIGATIONS 
 State-Specific Provisions

 1. Capitalized terms used and not specifically defined herein have the meanings given to such terms in
the Guaranty to which this Schedule is attached. 
 2. If the Property Jurisdiction is listed below, the
additional provision(s) for such Property Jurisdiction set forth below shall also apply and are incorporated into the Guaranty: 
  

			
	 ARIZONA:
	  	 Section 8 of the Guaranty is hereby amended by adding the following new language to the end thereof:

		
		  	 (e) In addition, Guarantor waives, to the fullest extent allowed by applicable law, all of Guarantor’s rights under
Sections 12-1566, 12-1642, 12-1643, 12-1644, 44-142, 47-3419, and 47-3605 of Arizona Revised Statutes, and Rule 17(f) of the Arizona Rules of Civil Procedure, as now in effect or as modified or amended in the future and any similar or
analogous other present or future statutory or common law or procedural rule of any jurisdiction relevant to guarantors, indemnitors, sureties, co-makers and/or accommodation parties. Guarantor’s obligations under this Guaranty may be enforced
by Lender in an action regardless of whether a trustee’s sale is held.

		
	 ARKANSAS:
	  	 Section 8 of the Guaranty is hereby amended by adding the following new language to the end thereof:

		
		  	 (e) In recognition of the liability of Guarantor pursuant to this Guaranty, Guarantor waives and relinquishes any and all rights,
defenses and benefits limiting or exonerating the liability of Guarantor including the rights and defenses of an “accommodation party” pursuant to the Arkansas Uniform Commercial Code, Ark. Code Ann. Section 4-3-101 et
seq.

		
	 CALIFORNIA:
	  	 Section 8 of the Guaranty is hereby amended by adding the following new language to the end thereof:

		
		  	 (e) To the extent not addressed elsewhere by this Guaranty, Guarantor expressly waives any and all benefits, rights and/or defenses
which might otherwise be available to Guarantor under the following sections of the California Civil Code: Section 2809 (the obligation of a surety must be neither larger in amount nor in other respects more burdensome than that of the
principal), Section 2810 (a surety is not liable if, for any reason other than the mere personal disability of the principal, there is no liability upon the part of the principal at the time of execution of the contract, or the liability of the
principal thereafter ceases), Section 2819 (a surety is exonerated if the creditor alters the original obligation of the principal without the consent of the surety), Section 2822 (a surety’s right to have the principal designate the
portion of any obligation to be satisfied by the surety in the event that the principal provides partial satisfaction of such obligation), Section 2845 (a surety is exonerated to the extent that the creditor fails to proceed against the
principal, or to pursue any other remedy in the creditor’s power which the surety cannot pursue and which would lighten the surety’s burden), Section 2846 (a surety may compel the principal to perform the obligation when due),
Section 2847 (if a surety satisfies the principal obligation, or any part thereof, the principal is obligated to reimburse the surety for the amounts paid by the surety), Section 2850 (whenever the property of a surety is hypothecated with
property of the principal, the surety is entitled to have the property of the principal first applied to the discharge of the obligation), Section 2899 (where one has a lien upon several things, and other persons have subordinate liens upon, or
interests in, some but not all of the same things, the person having the prior lien, if he can do so without risk of loss to himself, or of injustice to other persons, must resort to the property in a certain order, on the demand of any party
interested) and Section 3433 (where a creditor is entitled to resort to each of several funds for the satisfaction of his claim, and another person has an interest in, or is entitled as a creditor to resort to some, but not all of them, the
latter may require the former to seek satisfaction from those funds to which the latter has no such claim, so far as it can be done without impairing the right of the former to complete satisfaction, and without doing injustice to third
persons).

		
		  	 (f) To the extent not addressed elsewhere by this Guaranty, Guarantor expressly agrees not to exercise or take advantage of any
rights, benefits and/or defenses which might be available to Guarantor under the following California Civil Code Sections, unless and until the Guaranteed Obligations shall have

			
		  	 been indefeasibly paid and satisfied in full: Section 2839 (performance of the principal obligation, or an offer of such performance, duly made as
provided in the Civil Code, exonerates a surety), Section 2848 (a surety, upon satisfaction of the obligation of the principal, is entitled to enforce remedies which the creditor then has against the principal and to pursue his co-sureties or
other third parties after the surety has satisfied the underlying debt, or at least more than his share of it), and Section 2849 (a surety is entitled to the benefit of security held by the creditor for the performance of the principal
obligation held by the creditor).

		
		  	 (g) Guarantor waives any defense that Guarantor may have by reason of the failure of Lender to provide Guarantor with any material
facts about Borrower, including any information respecting the financial condition of Borrower, Borrower’s ability to perform the Mortgage Loan obligations or the sufficiency of Lender’s security.

		
		  	 (h) Guarantor waives any defense that may arise by reason of the incapacity, lack of authority, death or disability of any other
Person, or the failure of Lender to file or enforce a claim against the estate (in administration, bankruptcy or any other proceeding) of any other person or persons.

		
		  	 (i) Guarantor waives all rights of indemnification and contribution and any other rights and defenses that are or may become
available to Guarantor by reason of Sections 2787 to 2855, inclusive, of the California Civil Code. Guarantor hereby waives the benefits of any right of discharge under any and all statutes or other laws relating to guarantors or sureties and
any other rights of guarantors or sureties thereunder.

		
		  	 (j) Guarantor waives all rights and defenses that Guarantor may have because the debtor’s (Borrower’s) debt is secured by
real property. This means, among other things:

		
		  	 (1) The creditor (Lender) may collect from Guarantor without first foreclosing on any real or personal property
collateral pledged by the debtor.

		
		  	 (2) If the creditor forecloses on any real property collateral pledged by the debtor: (A) the amount of
the debt may be reduced only by the price for which that collateral is sold at the foreclosure sale, even if the collateral is worth more than the sale price; and (B) the creditor may collect from Guarantor even if the creditor, by foreclosing
on the real property collateral, has destroyed any right Guarantor may have to collect from the debtor.

		
		  	 This is an unconditional and irrevocable waiver of any rights and defenses Guarantor may have because the debtor’s debt is
secured by real property. These rights and defenses include, but are not limited to, any rights or defenses based upon Sections 580a, 580b, 580d or 726 of the Code of Civil Procedure.

		
		  	 Guarantor waives all rights and defenses arising out of an election of remedies by the creditor, even though that election of
remedies, such as a nonjudicial foreclosure with respect to security for a guaranteed obligation, has destroyed Guarantor’s rights of subrogation and reimbursement against the principal (Borrower) by the operation of Section 580d of the
Code of Civil Procedure or otherwise.

		
		  	 (k) Any summary of statutory provisions is for convenience only, and Guarantor has read and is familiar with the entirety of such
provisions.

		
	 COLORADO:
	  	 Section 8 of the Guaranty is hereby amended by adding the following new language to the end thereof:

		
		  	 (e) In addition, Guarantor waives the benefit of C.R.S. Sections 13-50-101 through 13-50-103, inclusive.

		
	 CONNECTICUT:
	  	 The following provision is hereby added to the Guaranty as Section [25]:

		
		  	 [25].  Commercial Transaction.

		
		  	 GUARANTOR ACKNOWLEDGES THAT THIS IS A “COMMERCIAL TRANSACTION” AS SUCH IS DEFINED IN CHAPTER 903a OF THE CONNECTICUT
GENERAL STATUTES, AS AMENDED. GUARANTOR FURTHER ACKNOWLEDGES THAT, PURSUANT TO SUCH SECTION, GUARANTOR HAS A RIGHT TO NOTICE OF AND HEARING PRIOR TO THE ISSUANCE

			
		  	 OF ANY “PREJUDGMENT REMEDY.” NOTWITHSTANDING THE FOREGOING, GUARANTOR HEREBY WAIVES ALL RIGHTS TO SUCH NOTICE, JUDICIAL HEARING OR PRIOR COURT ORDER
IN CONNECTION WITH ANY SUIT ON THIS GUARANTY.

		
	 GEORGIA:
	  	 Section 8 of the Guaranty is hereby amended by adding the following new language to the end thereof:

		
		  	 (e) In addition, Guarantor waives the benefit of O.C.G.A. Section 10-7-24.

		
	 HAWAII:
	  	 Section 8 of the Guaranty is hereby amended by adding the following new language to the end thereof:

		
		  	 (e) In addition, Guarantor waives the benefit of HRS Section 651 to the fullest extent permitted by law.

		
	 IOWA:
	  	 The following provision is hereby added to the Guaranty as Section [25]:

		
		  	 [25].  No Oral Agreements.

		
		  	 IMPORTANT: READ BEFORE SIGNING. THE TERMS OF THIS GUARANTY SHOULD BE READ CAREFULLY BECAUSE ONLY THOSE TERMS IN WRITING ARE
ENFORCEABLE. NO OTHER TERMS OR ORAL PROMISES NOT CONTAINED IN THIS GUARANTY MAY BE LEGALLY ENFORCED. YOU MAY CHANGE THE TERMS OF THIS GUARANTY ONLY BY ANOTHER WRITTEN AGREEMENT.

		
	 KENTUCKY:
	  	 Section 2 of the Guaranty is hereby deleted and restated in its entirety to read as follows:

		
		  	 2.      Defined Terms.

		
		  	 All capitalized terms used and not specifically defined herein have the meanings given to such terms in the Loan Agreement. The
following term, when used in this Guaranty has the following meaning:

		
		  	 “Indebtedness” means the principal of, interest on and all other amounts due at any time under the Note, Loan Agreement or the Security
Instrument, or any or all of them, including prepayment premiums, late charges, default interest and advances as provided in the Loan Agreement to protect the security of the Security Instrument but expressly excludes any obligations under the
Environmental Indemnity Agreement or other Loan Documents (including any obligations of Borrower under such other Loan Documents that are incorporated into or otherwise included in the obligations of Borrower under, the Note, Loan Agreement or
Security Instrument). The Security Instrument is from Borrower for benefit of Lender and is as of the date of this Guaranty.

		
		  	 Section 3 of the Guaranty is hereby amended by adding the following new language to the end thereof:

		
		  	 Notwithstanding anything in this Guaranty to the contrary, the instruments being guaranteed, within the meaning of
K.R.S. 371.065, are the Note, the Loan Agreement and the Security Instrument, but only to the extent of the Indebtedness.

		
	 MINNESOTA:
	  	 Section 8 of the Guaranty is hereby amended by adding the following new language to the end thereof:

		
		  	 (e) In addition, to the extent permitted by applicable law, Guarantor waives the benefit of Minnesota Statutes
Section 582.30.

		
	 NEVADA:
	  	 Section 8 of the Guaranty is hereby amended by adding the following new language to the end thereof:

		
		  	 (e) any and all benefits which might otherwise be available to Guarantor under any applicable laws, including, to the extent
permitted in Nevada Revised Statutes Section 40.495(2), the benefits of the one-action rule under Nevada Revised Statutes Section 40.430, and to the extent permitted under Nevada Revised Statutes Section 104.3605, discharge under
Nevada Revised Statutes Section 104.3605(9).

			
		
	 NEW MEXICO:
	  	 The following provision is hereby added to the Guaranty as Section [25]:

		
		  	 [25].  No Oral Agreements.

		
		  	 Pursuant to Section 58-6-5 NMSA 1978, a contract, promise or commitment to loan money or to grant, extend or renew credit, or
any modification thereof, in an amount greater than Twenty-five Thousand and No/100 Dollars ($25,000.00) not primarily for personal, family or household purposes made by a financial institution is not enforceable unless made in writing and
signed by the party to be charged or that party’s authorized representatives.

		
	 NORTH CAROLINA:
	  	 Section 8 of the Guaranty is hereby amended by adding the following new language to the end thereof:

		
		  	 (e) Guarantor also waives, to the fullest extent permitted by law, all rights, including, without limitation, all rights granted by
Sections 26-7 through 26-9, inclusive, of the North Carolina Statutes, to require Lender to:

		
		  	 (1) proceed against or exhaust any collateral held by Lender to secure the repayment of the
Indebtedness;

		
		  	 (2) proceed against or pursue any remedy it may now or hereafter have against Borrower or any Guarantor, or, if
Borrower or any Guarantor is a partnership, any general partner of Borrower or general partner of any Guarantor; or

		
		  	 (3) demand or require collateral security from Borrower, any other Guarantor or any other Person as provided by
applicable law or otherwise.

		
	 OKLAHOMA:
	  	 Section 8 of the Guaranty is hereby amended by adding the following new language to the end thereof:

		
		  	 (e) Guarantor further waives, to the fullest extent permitted by applicable law, any right to revoke this Guaranty as to any future
advances by Lender under the Security Instrument to protect its interest in the Mortgaged Property. If Lender elects to enforce this Guaranty before, or without, enforcing the Security Instrument, Guarantor waives any right, whether pursuant to
12 Okla. Stat. Section 686 or otherwise, to require Lender to set off the value of the Mortgaged Property against the Indebtedness. Guarantor also hereby specifically waives all defenses, counterclaims, set-offs, benefits and rights which
Guarantor might now or in the future have pursuant to 12 Okla. Stat. Section 686 (1991), 12 Okla. Stat. Section 3-605 (1992) and 15 Okla. Stat. Sections 323, 334, 335, 337, 338, 339, 341 and 344
(1991).

		
	 OREGON:
	  	 The following provision is hereby added to the Guaranty as Section [25]:

		
		  	 [25].  No Oral Agreements.

		
		  	 UNDER OREGON LAW, MOST AGREEMENTS, PROMISES AND COMMITMENTS MADE BY LENDER CONCERNING LOANS AND OTHER CREDIT EXTENSIONS WHICH ARE
NOT FOR PERSONAL, FAMILY OR HOUSEHOLD PURPOSES OR SECURED SOLELY BY THE BORROWER’S RESIDENCE MUST BE IN WRITING, EXPRESS CONSIDERATION AND BE SIGNED BY LENDER TO BE ENFORCEABLE.

		
	 SOUTH CAROLINA:
	  	 The following provision is hereby added to the Guaranty as Section [25]:

		
		  	 [25].  South Carolina State Specific Provision.

		
		  	 The laws of South Carolina provide that in any real estate foreclosure proceeding a defendant against whom a personal judgment is taken or asked may within
thirty (30) days after the sale of the mortgaged property apply to the court for an order of appraisal. The statutory appraisal value as approved by the court would be substituted for the high bid and may decrease the amount of any deficiency
owing in connection with the transaction. THE UNDERSIGNED HEREBY WAIVES AND RELINQUISHES THE STATUTORY

			
		  	 APPRAISAL RIGHTS WHICH MEANS THE HIGH BID AT THE JUDICIAL FORECLOSURE SALE WILL BE APPLIED TO THE DEBT REGARDLESS OF ANY APPRAISED VALUE OF THE MORTGAGED
PROPERTY.

  

					
	GUARANTOR:
	
	  

			
	 By:
	 	  
	 	(SEAL)
	 Name:
	 	  

	 Title:
	 	  

  

			
	 TEXAS:
	  	 Section 8 of the Guaranty is hereby amended by adding the following new language to the end thereof:

		
		  	 (e) In addition, Guarantor waives the benefit of any right of discharge under Chapter 43 of the Texas Civil Practice and
Remedies Code and all other rights of sureties and guarantors thereunder.

		
		  	 (f) Guarantor waives all rights to contest any deficiency asserted by Lender as set forth in Texas Property Code 51.003, 51.004 and
51.005.

		
	 WASHINGTON:
	  	 The following provision is hereby added to the Guaranty as Section [25]:

		
		  	 [25].  No Oral Agreements.

		
		  	 ORAL AGREEMENTS OR ORAL COMMITMENTS TO LOAN MONEY, EXTEND CREDIT OR TO FORBEAR FROM ENFORCING REPAYMENT OF A DEBT ARE NOT
ENFORCEABLE UNDER WASHINGTON LAW.

		
	 WEST VIRGINIA:
	  	 Section 8 of the Guaranty is hereby amended by adding the following new language to the end thereof:

		
		  	 (e) In addition, Guarantor waives the benefit of W.Va. Code Sections 45-1-1, et seq.

		
	 WISCONSIN:
	  	 Section 8 of the Guaranty is hereby amended by adding the following new language to the end thereof:

		
		  	 (e) Guarantor agrees to the provisions of Section 846.101 or 846.103 of the Wisconsin Statutes, whichever is applicable, or
any successor provision, permitting Lender, at its option, upon waiving the right to judgment for deficiency, to hold a foreclosure sale of the Land and Improvements three (3) months after a foreclosure judgment is entered (if
Section 846.103 is applicable) or six (6) months after a foreclosure judgment is entered (if Section 846.101 is applicable). Upon revocation by written notice or actual notice of death, this Guaranty shall continue in full force and
effect as to all obligations contracted for or incurred before revocation, and as to them Lender shall have the rights provided by this Guaranty as if no revocation has occurred. Any renewal, extension or increase in the rate of any such Obligation,
whether made before or after revocation, shall constitute an Obligation contracted for or incurred before revocation.

		
		  	
RFE                           
                 

		  	 Guarantor Initials

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