Document:

Exhibit 10.17

 

Marquis at Cibolo Canyon

f/k/a The Towers at TPC San Antonio

 

INTEREST RATE CAP RESERVE AND SECURITY
AGREEMENT

 

This INTEREST RATE CAP RESERVE AND SECURITY
AGREEMENT (this “Agreement”), dated as of June 9, 2017, is by and between
BR CWS CIBOLO CANYON OWNER, LLC, a Delaware limited liability company (“Borrower”),
and FANNIE MAE, a corporation duly organized under the Federal National
Mortgage Association Charter Act, as amended, 12 U.S.C. §1716 et seq. and duly organized and existing under the laws of the
United States (“Lender”).

 

RECITALS:

 

A.           Pursuant
to that certain Multifamily Loan and Security Agreement dated May 27, 2014, executed by and between BRE MF TPC LLC, a Delaware
limited liability company (“Original Borrower”) and Wells Fargo Bank, National Association, a national banking
association (“Original Lender”) (as amended, restated, replaced, supplemented or otherwise modified from time
to time, the “Loan Agreement”), Original Lender has agreed to make a loan to Original Borrower in the original
principal amount of $18,078,000.00 (the “Mortgage Loan”), as evidenced by, among other things, that certain
Multifamily Note dated May 27, 2014, executed by Original Borrower and made payable to Lender in the amount of the Mortgage Loan
(as amended, restated, replaced, supplemented or otherwise modified from time to time, the “Note”).

 

B.           In
addition to the Loan Agreement, the Mortgage Loan and the Note are also secured by a certain Multifamily Mortgage, Deed of Trust
or Deed to Secure Debt (as amended, restated, replaced, supplemented or otherwise modified from time to time, the “Security
Instrument”), dated as of May 27, 2014, granting a lien on certain real property located in San Antonio (Bexar County),
Texas (the “Mortgaged Property”).

 

C.           Borrower
is assuming the Mortgage Loan from Original Borrower.

 

D.           Lender
has required, and Borrower has agreed to acquire, maintain and pledge to Lender an interest rate cap (the “Interest Rate
Cap”), pursuant to one or more interest rate cap agreements, in order to provide additional support and collateral for
Borrower’s obligations to Lender under the Loan Agreement and other Loan Documents (as defined in the Loan Agreement).

 

E.           To
the extent that the term of the initial Interest Rate Cap acquired by Borrower is less than the term of the Mortgage Loan, Borrower
is required to make monthly deposits with Lender for the acquisition of a subsequent Interest Rate Cap, such deposits to be held
in an escrow account by Lender pursuant to the terms of this Agreement.

 

F.           Borrower
and Lender are entering into this Agreement to (i) evidence Borrower’s obligation to maintain an Interest Rate Cap for the
remaining term of the Mortgage Loan, (ii) evidence Borrower’s obligation to make monthly deposits for the acquisition of
a subsequent Interest Rate Cap (if applicable), and (iii) provide further security for Borrower’s obligations under the Loan
Documents.

 

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NOW, THEREFORE, in consideration of the
above and the mutual promises contained in this Agreement and for other valuable consideration, including Lender’s making
the Mortgage Loan to Borrower, the receipt and sufficiency of which are acknowledged, Borrower and Lender agree as follows:

 

ARTICLE 1

DEFINITIONS; RULES OF CONSTRUCTION

 

Section 1.01    Recitals.

 

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

 

Section 1.02    Defined Terms.

 

Capitalized terms used and not specifically
defined herein shall have the meanings given to such terms in the Loan Agreement. Unless otherwise defined in this Agreement, terms
used in this Agreement that are defined in the UCC shall have the meaning given those terms in the UCC. The following terms in
this Agreement shall have the following meanings:

 

“Collateral”
means the items listed in Section 4.0l(a) through Section 4.0l(k) of this Agreement.

 

“Collateral
Liens” means any lien, security interest, option or other charge or encumbrance. ·

 

“Counterparty”
means (a) an interest rate cap provider acceptable to Lender under the Interest Rate Cap Documents, or (b) a counterparty
on any list of acceptable counterparties for interest rate caps of the type required by this Agreement maintained by Lender, as
any such list may be modified by Lender from time to time.

 

“Event of Default” has
the meaning set forth in Section 7.01 of this Agreement.

 

“Initial Interest Rate Cap”
means the initial Interest Rate Cap purchased by Borrower with respect to the Mortgage Loan.

 

“Initial
Interest Rate Cap Term” means the period in which the Initial Interest Rate Cap shall be in effect, beginning
on or prior to the Effective Date and terminating not earlier than the first to occur of (a) the last day of the forty-eighth (48th)
full calendar month thereafter and (b) the Maturity Date.

 

“Interest Rate Cap” has
the meaning set forth in Recital C of this Agreement.

 

“Interest Rate Cap Documents”
means the rate cap agreements and related documentation in form and content acceptable to Lender.

 

“Interest Rate Cap Reserve Escrow”
means all Monthly Deposits and all other funds held in the Interest Rate Cap Reserve Escrow Account.

 

“Interest Rate Cap Reserve Escrow
Account” means an interest-bearing account which meets the standards for custodial accounts as required by Lender from
time to time.

 

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“Monthly
Deposit” means, with respect to the first six (6) months after the purchase of the Initial Interest Rate Cap,
an amount equal to one-forty-eighth (148th) of one hundred percent (100%) of the cost, as reasonably estimated by Lender, to obtain
any required Subsequent Interest Rate Cap. Thereafter, the Monthly Deposit shall mean the amount determined by Lender in accordance
with Section 3.02 of this Agreement.

 

“Payment
Date” means the date by which the Counterparty requires payment of the Purchase Price.

 

“Payments”
means any and all moneys payable to Borrower, from time to time, pursuant to the Interest Rate Cap Documents by the
Counterparty, whether credited to the Interest Rate Cap Reserve Escrow Account, held in the course of payment or collection by
Lender, or otherwise.

 

“Purchase Price” means
the purchase price of the Subsequent Interest Rate Cap.

 

“Required Strike Rate” means
four percent (4.00%).

 

“Subsequent
Interest Rate Cap” means a subsequent Interest Rate Cap required to be purchased and pledged to Lender pursuant
to the terms of this Agreement.

 

“Subsequent
Interest Rate Cap Term” means the period in which the Subsequent Interest Rate Cap shall be in effect, beginning
on or prior to the termination date of the Interest Rate Cap then in effect and terminating not earlier than the first to occur
of (a) the last day of the forty-eighth (48th) full calendar month thereafter and (b) the Maturity Date.         ·

 

“UCC”
means the Uniform Commercial Code as adopted in the state in which Borrower is organized.

 

ARTICLE 2

TERMS OF INTEREST RATE CAP

 

Section 2.01    General
Terms.

 

To protect against fluctuations in interest
rates during the term of the Mortgage Loan, Borrower shall make arrangements for an Interest Rate Cap to be in place and maintained
at all times with respect to the Mortgage Loan in accordance with the following terms and conditions:

 

(a)          Term.

 

Except as hereinafter permitted, the Initial
Interest Rate Cap shall be in effect for the Initial Interest Rate Cap Term. If the Initial Interest Rate Cap Term is less than
the term of the Mortgage Loan, a Subsequent Interest Rate Cap shall be required. Any Subsequent Interest Rate Cap shall be in effect
for the Subsequent Interest Rate Cap Term.

 

(b)          Notional
Amount.

 

The notional amount of the Initial Interest
Rate Cap shall be equal to the original principal balance of the Mortgage Loan for the entire term of the Initial Interest Rate
Cap. The notional amount of any Subsequent Interest Rate Cap shall be equal to the outstanding principal balance of the Mortgage
Loan at the time that any Subsequent Interest Rate Cap is to become effective. Unless otherwise agreed by Lender, the notional
amount of any Interest Rate Cap shall not amortize over its term.

 

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(c)          Strike
Rate.

 

Each Initial and any Subsequent Interest
Rate Cap shall have a strike rate equal to or less than the Required Strike Rate.

 

(d)          Interest
Rate Cap Documents and Counterparty.

 

All Interest Rate Caps shall be evidenced,
governed and secured on terms and conditions pursuant to Interest Rate Cap Documents between Borrower and the Counterparty.

 

Section 2.02    Payments
Made under Interest Rate Cap.

 

The Interest Rate Cap Documents shall require
the Counterparty to make all payments due under the Interest Rate Cap directly to Lender for so long as the Interest Rate Cap is
subject to the pledge established hereunder. Such payments will be paid over to Borrower only if (a) there is no Event of Default,
and (b) Lender has received payment in full for all amounts due on the Mortgage Loan as required by the Loan Documents.

 

Section 2.03    Rights
and Remedies under Interest Rate Cap Documents.

 

For so long as an Interest Rate Cap is
pledged as collateral for the Mortgage Loan pursuant to the terms of this Agreement, Borrower shall not exercise any right or remedy
under any Interest Rate Cap Documents without Lender’s prior written consent and shall exercise its rights and remedies under
the Interest Rate Cap Documents as directed by Lender in writing. Rights and remedies under the Interest Rate Cap Documents include,
but are not limited to, any right to designate an “Early Termination Date” or otherwise terminate the Interest Rate
Cap due to the occurrence of a “Termination Event,” an “Additional Termination Event” or an “Event
of Default.” All capitalized terms appearing in this Section 2.03 in quotation marks are used as defined in the Interest
Rate Cap Documents.

 

Section 2.04    Termination
of Interest Rate Cap.

 

Borrower shall not terminate, transfer
or consent to any transfer of any existing Interest Rate Cap without Lender’s prior written consent; provided, however, that
if, and at such time as any amounts due and owing on the Mortgage Loan as required by the Loan Documents are paid in full or if
the Mortgage Loan is converted to a fixed rate of interest, Borrower shall have the right to terminate the existing Interest Rate
Cap in accordance with Section 8.02 of this Agreement. If an Interest Rate Cap unexpectedly and unavoidably terminates or terminates
for any reason on a date other than its scheduled expiration date without the prior written consent of Lender, Borrower shall,
within ten (10) Business Days of such termination, obtain a new Interest Rate Cap satisfying the requirements of this Agreement.

 

ARTICLE 3

INTEREST RATE CAP RESERVE ESCROW ACCOUNT

 

Section 3.01    Obligation
to Maintain Interest Rate Cap Reserve Escrow Account.

 

During any period in which an Interest
Rate Cap with an original term of less than the remaining term of the Mortgage Loan is in effect, Borrower is required to make
Monthly Deposits to be held in the Interest Rate Cap Reserve Escrow Account to provide a cash reserve for the purchase of a Subsequent
Interest Rate Cap. Borrower shall, with each monthly payment due on the Mortgage Loan, deposit with Lender the Monthly Deposit
into the Interest Rate Cap Reserve Escrow Account.

 

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Section 3.02    Adjustment
of Monthly Deposit.

 

At the end of each six (6) month period
following the date of this Agreement, Lender shall estimate the cost of the Subsequent Interest Rate Cap and shall adjust the Monthly
Deposit based on the then current estimate for purchase of the Subsequent Interest Rate Cap. No adjustment shall be made to the
Monthly Deposit if Lender determines that the current estimate of the cost of the Subsequent Interest Rate Cap remains the same
or has decreased. Borrower shall continue to make the Monthly Deposits at the level required for the most recent six (6) month
period until Lender delivers written notice of a change in the amount of the Monthly Deposit.

 

Section 3.03    Terms
of Interest Rate Cap Reserve Escrow Account.

 

Lender shall deposit the Monthly Deposits
into the Interest Rate Cap Reserve Escrow Account. Lender or a designated representative of Lender shall have the sole right to
make withdrawals from the Interest Rate Cap Reserve Escrow Account. All interest earned on or profits realized from amounts on
deposit in the Interest Rate Cap Reserve Escrow Account shall be added to and become part of the Interest Rate Cap Reserve Escrow.
Lender shall not be responsible for any losses resulting from the investment of the Interest Rate Cap Reserve Escrow or for obtaining
any specific level or percentage of earnings on such investment. If applicable law requires and provided no Event of Default exists
under any of the Loan Documents, Lender shall pay to Borrower the interest earned on the Interest Rate Cap Reserve Escrow on January
I of each year. Otherwise, all interest earnings shall remain in the Interest Rate Cap Reserve Escrow Account.

 

Section 3.04    Lender’s
Duties Regarding the Interest Rate Cap Reserve Escrow Account.

 

Lender acknowledges that:

 

(a)          it
will hold the Monthly Deposits and any investments in the Interest Rate Cap Reserve Escrow pursuant to the terms of this Agreement;

 

(b)          it
will credit all Monthly Deposits and any investments in the Interest Rate Cap Reserve Escrow on its own books and records to the
Interest Rate Cap Reserve Escrow Account, subject to the security interests created in this Agreement;

 

(c)          it
will hold all Monthly Deposits for the credit of the Interest Rate Cap Reserve Escrow, subject to the security interest and the
terms of this Agreement; and

 

(d)          it
will keep accurate records regarding amounts on deposit in the Interest Rate Cap Reserve Escrow Account and any interest earned
on or profits realized from amounts on deposit in the Interest Rate Cap Reserve Escrow Account.

 

Section 3.05    Irrevocable
Deposits in Escrow.

 

All deposits into the Interest Rate Cap
Reserve Escrow Account constitute irrevocable payments in escrow solely for use as described in this Agreement. Borrower shall
not have any control over the use of, or any right to withdraw, any moneys from the Interest Rate Cap Reserve Escrow Account or
any proceeds thereof except as provided in Section 3.07 of this Agreement, nor shall Borrower have any right, title or interest in the Interest Rate Cap Reserve Escrow Account, other than
Borrower’s right to receive interest pursuant to Section 3.03 above.

 

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Section 3.06    Request for Disbursement.

 

At least ten (10) Business Days prior to
the date on which the Initial Interest Rate Cap is to expire, Borrower shall be required to purchase the Subsequent Interest Rate
Cap on terms and conditions satisfactory to Lender. In such event, and provided that funds are available in the Interest Rate Cap
Reserve Escrow Account, Borrower shall request a withdrawal from the Interest Rate Cap Reserve Escrow Account to acquire the Subsequent
Interest Rate Cap. Each written request for disbursement from the Interest Rate Cap Reserve Escrow Account shall specify (a) the
Purchase Price, (b) the name, address, contact name, telephone number and wiring instructions of the Counterparty, (c) the Payment
Date, and (d) such other information as Lender may require.

 

Section 3.07    Disbursement for Purchase
of Subsequent Interest Rate Cap.

 

Upon receipt by Lender of a written request from Borrower
in accordance with Section 3.6 above, and the determination
by Lender that all applicable terms and conditions of this Agreement have been satisfied, Lender shall disburse to the
Counterparty of the Subsequent Interest Rate Cap, an amount from the Interest Rate Cap Reserve Escrow Account equal to the
lesser of (a) the Purchase Price, or (b) the amount then on deposit in the Interest Rate Cap Reserve Escrow Account. In no
event shall Lender be obligated to disburse funds from the Interest Rate Cap Reserve Escrow Account if an Event of Default
has occurred and is continuing.

 

Section 3.08    Remaining Balance After
Payment of Purchase Price.

 

Provided that Borrower has no obligation
to purchase additional Subsequent Interest Rate Caps under the terms of this Agreement, any balance remaining in the Interest Rate
Cap Reserve Escrow Account after payment of the Purchase Price shall be delivered to Borrower on or promptly following the Payment
Date. Borrower’s obligation to make Monthly Deposits hereunder shall cease and terminate upon the earlier of (a) purchase
of a Subsequent Interest Rate Cap with a term of at least the entire remaining term of the Mortgage Loan, (b) conversion of the
Mortgage Loan to a fixed rate of interest, and (c) payment in full of the Mortgage Loan.

 

ARTICLE 4

SECURITY INTEREST IN COLLATERAL; FURTHER
ASSURANCES

 

Section 4.01    Security Interest in Collateral.

 

As security for the Indebtedness, Borrower
hereby grants to Lender, its successors and assigns, a lien and continuing security interest in all of Borrower’s right,
title and interest in and to the following Collateral whether now owned or hereafter acquired:

 

(a)          the
Interest Rate Cap and the Interest Rate Cap Documents representing the Initial Interest Rate Cap and any Subsequent Interest Rate
Cap;

 

(b)          any
and all Payments;

 

(c)          any
residual right, title or interest Borrower may have in the Interest Rate Cap Reserve Escrow Account (to the extent required by
this Agreement);

 

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(d)          all
Monthly Deposits, whether credited to the Interest Rate Cap Reserve Escrow Account, held in the course of payment or collection
by Lender, or otherwise;

 

(e)          all
interest earned and profits realized on funds in the Interest Rate Cap Reserve Escrow Account;

 

(f)          all
rights, liens and security interests or guarantees now existing or hereafter granted by the Counterparty or any other person to
secure or guaranty payment of the Payments due pursuant to the Interest Rate Cap Documents;

 

(g)          all
cash, funds, investments, securities, accounts, general intangibles and all other property held from time to time in the Interest
Rate Cap Reserve Escrow Account and all certificates and instruments representing or evidencing any of the foregoing;

 

(h)         all
rights of Borrower under any of the foregoing, including all rights of Borrower to the Payments, contract rights and general intangibles
now existing or hereafter arising with respect to any or all of the foregoing;

 

(i)           all
documents, writings, books, files, records and other documents arising from or relating to any of the foregoing, whether now existing
or hereafter arising;

 

(j)          all
extensions, renewals and replacements of the foregoing; and

 

(k)          all
cash and non-cash proceeds and products of any of the foregoing, including, without limitation, interest, dividends, cash, instruments,
proceeds of any insurance, and other property from time to time received, receivable or otherwise distributed or distributable
in respect of or in exchange for any or all of the foregoing.

 

TO HAVE AND TO HOLD the Collateral, together
with all right, title, interest, powers, privileges and preferences pertaining or incidental thereto, unto Lender, its successors
and assigns, forever, subject, however, to the terms, covenants and conditions herein set forth. 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 in the Collateral and Borrower agrees, if Lender so requests, to
execute and deliver to Lender such financing statements, continuation statements and amendments. Borrower shall pay all filing
costs and all costs and expenses of any record searches for financing statements that Lender may require.

 

Section 4.02    Further
Assurances.

 

At any time and from time to time, at the
expense of Borrower, Borrower shall promptly give, execute, deliver, file and record any notice, statement, instrument, document,
agreement or other paper and do such other acts and things that may be necessary, or that Lender may request, in order to perfect,
continue and protect any security interest granted or purported to be granted by this Agreement or to enable Lender to exercise
and enforce its rights and remedies under this Agreement.

 

Section 4.03    Competing
Security Arrangements.

 

Borrower shall not execute, file, permit
to be filed or suffer to remain on file in any jurisdiction any security agreement, financing statement or like agreement or instrument
with respect to the Collateral, or any part of the Collateral, naming anyone other than Lender as the secured party. Borrower shall
not sell, exchange or transfer or otherwise dispose of any of the Collateral, or any interest in the Collateral, other than any
security interest or other lien in favor of Lender.

 

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Section 4.04    No Change.

 

Borrower will not voluntarily or involuntarily
change its principal place of business, chief executive office, name or identity, without at least thirty (30) days prior written
notice to Lender, except in the event of a change in principal place of business or chief executive office necessitated by fire,
flood or other calamity, in which case such notice shall be provided as soon as practicable.

 

Section 4.05    Defense of Collateral.

 

Borrower will defend the Collateral against
all claims and demands of all persons at any time claiming the same or any interest in the Collateral.

 

ARTICLE 5

DELIVERY OF INTEREST RATE CAP DOCUMENTS

 

Section 5.01    Acquisition of Interest
Rate Cap; Delivery of Interest Rate Cap Documents.

 

Borrower has, on or before the date of
this Agreement, executed and delivered the Interest Rate Cap Documents to the Counterparty and has delivered to Lender fully executed
originals of such Interest Rate Cap Documents. True, complete and correct copies of the Interest Rate Cap Documents and all amendments
thereto, fully executed by all parties, are attached as Exhibit A hereto. Borrower hereby represents and warrants to Lender
that there is no additional security for or any other arrangements or agreements relating to the Interest Rate Cap Documents and
that the Counterparty has consented to Borrower’s pledge of its rights and interests in the Interest Rate Cap to Lender as
security for the Mortgage Loan.

 

Section 5.02    Obligations Remain Absolute.

 

Nothing contained herein shall relieve
Borrower of its primary obligation to pay all amounts due in respect of its obligations on the Mortgage Loan as required by the
Loan Documents.

 

Section 5.03    Subsequent Interest Rate
Caps.

 

Borrower agrees to execute and deliver
to Lender a Supplemental Agreement substantially in the form of the attached Exhibit B attached hereto on each occasion
on which Borrower acquires a Subsequent Interest Rate Cap. Borrower shall, on or before the date any Subsequent Interest Rate Cap
is to become Collateral under this Agreement, execute and deliver the Interest Rate Cap Documents representing such Subsequent
Interest Rate Cap to the Counterparty and deliver to Lender fully executed originals of such Interest Rate Cap Documents to be
held under this Agreement as a part of the Collateral.

 

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ARTICLE 6

REPRESENTATIONS AND WARRANTIES

 

Section 6.01    Representations
and Warranties of Borrower.

 

Borrower represents and warrants to Lender that:

 

(a)          Borrower
has paid to the Counterparty the entire cost of the Initial Interest Rate Cap;

 

(b)          the
individuals who are signing and delivering this Agreement on behalf of Borrower have been duly authorized to do so in accordance
with the documents and instruments pursuant to which Borrower is organized and which govern the conduct of Borrower’s business;

 

(c)          no
consent of any other person or entity and no authorization, approval, or other action by, and no notice to or filing with, any
governmental authority or regulatory body is required or will be required (1) for the pledge by Borrower of the Collateral pursuant
to this Agreement or any Supplemental Agreement or for the execution, delivery or performance of this Agreement or any Supplemental
Agreement by Borrower (other than the consent of the Counterparty where such consent has been obtained), (2) for the perfection
or maintenance of the security interest created hereby or by any Supplemental Agreement (including the first priority nature of
such security interest) other than the filing of any financing statement as may be required by the UCC, or (3) for the execution,
delivery or performance of this Agreement by Borrower;

 

(d)          there
are no conditions precedent to the effectiveness of this Agreement that have not been satisfied or waived;

 

(e)          neither
the execution nor delivery of this Agreement or any Supplemental Agreement nor the performance by Borrower of its obligations under
this Agreement or any Supplemental Agreement, nor the consummation of the transactions contemplated by this Agreement or any Supplemental
Agreement, will (1) conflict with any provision of the organizational documents of Borrower,
(2) conflict with, result in a breach of, or constitute a default (or an event which would, with the passage of time or the giving
of notice or both, constitute a default) under, or give rise to a right to terminate, amend, modify, abandon or accelerate, any
contract, agreement, promissory note, lease, indenture, instrument or license to which Borrower is a party or by which Borrower’s
assets or properties may be bound or affected, (3) violate or conflict with any federal, state or local law, statute, ordinance,
rule, regulation, order, judgment, decree or arbitration award which is either applicable to, binding upon or enforceable against
Borrower, (4) result in or require the creation or imposition of any Collateral Liens upon or with respect to the Collateral, other
than Collateral Liens in favor of Lender, (5) violate any legally protected right of any Person or give to any Person a right or
claim against Borrower, or (6) require the consent, approval, order or authorization of, or the registration, declaration or filing
(except to the extent that the filing of financing statements may be applicable) with, any federal, state or local government entity;

 

(f) Borrower
is and shall be the sole legal and beneficial owner of, and has and will have good and marketable title to (and has full right
and authority to pledge and assign), the Collateral, free and clear of all Collateral Liens (other than in favor of Lender), all
fiduciary obligations of any kind and any adverse claim of title thereto and the Collateral is not subject to any offset, right
of redemption, defense or counterclaim of a third party. There is no additional security for or any other arrangements or agreements
relating to the Interest Rate Cap Documents, except as may have been disclosed to Lender in writing;

 

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(g)          the
security interest of Lender in the Collateral is, or when it attaches shall be, a first priority and perfected security interest.
No financing statement covering the Collateral, or any part of the Collateral (other than any financing statement naming only Lender
as the secured party), is outstanding or is on file in any public office;

 

(h)          Borrower
is qualified to transact business and is in good standing in the state in which it is formed or organized, the Property Jurisdiction
and in each other jurisdiction that qualification or standing is required according to applicable law to conduct its business with
respect to the Mortgaged Property and where the failure to be so qualified would adversely affect Borrower’s operation of
the Mortgaged Property or the validity, enforceability or the ability of Borrower to perform its obligations under this Agreement
or any other Loan Document; and

 

(i)          Borrower
has not commenced (within the meaning of any Insolvency Laws) a voluntary case, consented to the entry of an order for relief against
it in an involuntary case, or consented to the appointment of a receiver or custodian of it or for any part of its property, nor
has a court of competent jurisdiction entered an order or decree under any Insolvency Law that is for relief against it in an involuntary
case or appointed a receiver or custodian for Borrower or any part of its property.

 

ARTICLE 7

EVENTS OF DEFAULT; RIGHTS AND REMEDIES

 

Section 7.01    Event
of Default.

 

The occurrence of any one or more of the
following events shall constitute an “Event of Default” under this Agreement:

 

(a)          the
failure by Borrower to observe and perform any duty, obligation or covenant required to be observed or performed by this Agreement
or any Supplemental Agreement subject to any applicable notice and cure rights provided in this Agreement, any Supplemental Agreement,
or the Loan Agreement;

 

(b)          any
representation or warranty on the part of Borrower contained in this Agreement or repeated and reaffirmed in this Agreement or
any Supplemental Agreement proves to be false, inaccurate, or misleading in any material respect when made or deemed made; and

 

(c)          the
occurrence of an Event of Default under any Loan Document.

 

Section 7.02    Remedies
on Default.

 

If any Event of Default under this Agreement has occurred and
is continuing:

 

(a)          At
the direction of Lender, Borrower shall deliver all Collateral to Lender or its designee;

 

(b)          Lender
may, without further notice, exercise all rights, privileges or options pertaining to the Collateral as if Lender were the absolute
owner of such Collateral, upon such terms and conditions as Lender may determine, all without liability except to account for property
actually received by Lender, and Lender shall have no duty to exercise any of those rights, privileges or options and shall not
be responsible for any failure to do so or delay in so doing; and

 

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(c)          Lender
may, subject to the terms of the Interest Rate Cap Documents, exercise in respect of the Collateral, in addition to other rights
and remedies provided for in this Agreement or otherwise available to it, all of the rights and remedies of a secured party under
the UCC and also may, without notice except as specified below, sell the Collateral at public or private sale, at any of the offices
of Lender or elsewhere, for cash, on credit or for future delivery, and upon such other terms as may be commercially reasonable.
Borrower agrees that, to the extent notice of sale shall be required by applicable law, at least ten (10) days prior notice to
Borrower of the time and place of any public sale or the time after which any private sale is to be made shall constitute reasonable
notification. Lender shall not be obligated to make any sale of Collateral regardless of notice of sale having been given. Lender
may adjourn any public or private sale from time to time by announcement at the time and place fixed therefor, and such sale may,
without further notice, be made at the time and place to which it was so adjourned. In case of any sale by Lender of any of the
Collateral, the Collateral so sold may be retained by Lender until the selling price is paid by the purchaser, but Lender shall
not incur any liability in case of failure of the purchaser to take up and pay for the Collateral so sold. In case of any such
failure, such Collateral so sold may be again similarly sold.

 

The foregoing rights and remedies (1)
shall be cumulative and concurrent, (2) may be pursued separately, successively or concurrently against Borrower and any
other party obligated for the Indebtedness, or against the Collateral, or any other security for the Indebtedness, at the sole
discretion of Lender, (3) may be exercised as often as occasion therefor shall arise, it being agreed by Borrower that the exercise
or failure to exercise any of same shall not in any event be construed as a waiver or release thereof or of any other right, remedy
or recourse, and (4) are intended to be and shall be non-exclusive. Nothing in this Agreement shall require or be construed to
require Lender to accept tender of performance of any of Borrower’s obligations under this Agreement after the expiration
of any time period set forth in this Agreement for the performance of such obligations and the expiration of any applicable cure
periods, if any.

 

Section 7.03    Application of Proceeds.

 

Lender shall apply the Collateral or the
cash proceeds actually received from any sale or other disposition of the Collateral in its sole and absolute discretion to the
following, in any order:

 

(a)          to
reimburse Lender for any amounts due to it pursuant to Section 7.0l(a) of this Agreement including the expenses of preparing for
sale, selling and the like and to reasonable attorneys’ fees and legal expenses incurred by Lender in connection therewith;

 

(b)          to
the repayment of all amounts then due and unpaid on the Indebtedness in such order of priority as Lender may determine; and

 

(c)          to
purchase any required Subsequent Interest Rate Cap that meets the requirements of this Agreement or any of the other Loan Documents.

 

If the proceeds of sale, collection or
other realization of or upon the Collateral are insufficient to cover the costs and expenses of such realization and the payment
in full of the Indebtedness, Borrower shall remain liable for the deficiency, except to the extent that Borrower’s liability
for payment of the Indebtedness is limited by the terms of the Loan Agreement.

 

    	Interest Rate Cap Reserve and Security
 Agreement	Form 6442	Page 11
	Fannie Mae	06-16	© 2016 Fannie Mae

     

    

 

Section 7.04    No
Additional Waiver Implied by One Waiver.

 

If any
provision of this Agreement is breached by Borrower and thereafter waived by Lender in writing, such waiver shall be limited to
the particular breach so waived and shall not be deemed to waive any other breach under this Agreement.

 

Section 7.05    Lender
Appointed Attorney-in-Fact.

 

Borrower hereby appoints Lender, through
any duly authorized officer of Lender, as Borrower’s attorney-in-fact, with full authority in the place and stead of Borrower
and in the name of Borrower or otherwise, from time to time in Lender’s discretion during the continuance of an Event of
Default, to take any action and to execute any instrument which Lender may deem necessary or advisable to exercise the rights and
remedies granted in this Agreement, including, to receive, endorse and collect all instruments made payable to Borrower representing
any interest payment, dividend, or other distribution in respect of the Collateral or any part of the Collateral and to give full
discharge for the same. Borrower agrees that the power of attorney established pursuant to this Section 7.05 shall be deemed coupled
with an interest and shall be irrevocable.

 

Section 7.06    Nature
of Lender’s Rights.

 

The right of Lender to the Collateral held
for its benefit under this Agreement shall not be subject to any right of redemption Borrower might otherwise have and shall not
be suspended, discontinued or reduced or terminated for any cause, including, without limiting the generality of the foregoing,
any event constituting force majeure or any acts or circumstances that may constitute commercial frustration of purpose.

 

ARTICLE 8

MISCELLANEOUS PROVISIONS

 

Section 8.01    Fees,
Costs and Expenses; Indemnification.

 

Borrower agrees to reimburse Lender, on
demand, for all out-of-pocket costs and expenses incurred by Lender in connection with the administration and enforcement of this
Agreement or any Supplemental Agreement and agrees to indemnify and hold harmless Lender from and against any and all losses, costs,
claims, damages, penalties, causes of action, suits, judgments, liabilities and expenses (including, without limitation, reasonable
attorneys’ fees and expenses) incurred by Lender under this Agreement or any Supplemental Agreement or in connection with
this Agreement or any Supplemental Agreement, unless such liability shall be due to willful misconduct or gross negligence on the
part of Lender or its agents or employees. If Borrower fails to do any act or thing which
it has covenanted to do under this Agreement or any Supplemental Agreement or any representation or warranty on the part of Borrower
contained in this Agreement or any Supplemental Agreement or repeated and reaffirmed in this Agreement or any Supplemental Agreement
is breached, Lender may (but shall not be obligated to) do the same or cause it to be done or remedy any such breach, and may expend
its funds for such purpose. Any and all amounts so expended by Lender shall be repayable to it by Borrower upon Lender’s
demand. The obligations of Borrower under this Section 8.01 shall survive the termination of this Agreement or any Supplemental
Agreement and the discharge of the other obligations of Borrower under this Agreement or any Supplemental Agreement.

 

    	Interest Rate Cap Reserve and Security
 Agreement	Form 6442	Page 12
	Fannie Mae	06-16	© 2016 Fannie Mae

     

    

 

Section 8.02    Termination.

 

This Agreement and each Supplemental Agreement
and the assignments, pledges and security interests created or granted by this Agreement and each Supplemental Agreement shall
create a continuing security interest in the Collateral and shall terminate upon the earlier to occur of (a) payment in full of
all amounts due under the Loan Documents, or (b) the conversion of the Mortgage Loan to a fixed rate of interest pursuant to the
terms of the Conversion Agreement. Upon termination of this Agreement, Lender shall deliver to Borrower all Collateral and documents
then in the custody or possession of Lender and, if requested by Borrower, shall execute and deliver to Borrower for recording
or filing in each office in which any assignment or financing statement relative to the Collateral or the agreements relating thereto
or any part of the Collateral, shall have been filed or recorded, a termination statement or release under applicable law (including,
if relevant, any financing statement), releasing Lender’s interest in the Collateral and such other documents and instruments
as Borrower may reasonably request, all without recourse to or any warranty whatsoever by Lender and at the cost and expense of
Borrower.

 

Section 8.03    No
Deemed Waiver.

 

No failure on the part of Lender or any
of its agents to exercise, and no course of dealing with respect to, and no delay in exercising, any right, power or remedy hereunder
shall operate as a waiver thereof, nor shall any single or partial exercise by Lender or any of its agents of any right, power
or remedy hereunder preclude any other or further exercise thereof or the exercise of any other right, power or remedy. The remedies
herein are cumulative and are not exclusive of any remedies provided by law.

 

Section 8.04    Non-Recourse.

 

Article 3 (Personal Liability) of the Loan
Agreement is hereby incorporated herein as if fully set forth in the body of this Agreement.

 

Section 8.05    Governing
Law; Consent to Jurisdiction and Venue.

 

Section 15.01 (Governing Law; Consent to
Jurisdiction and Venue) of the Loan Agreement is hereby incorporated herein as if fully set forth in the body of this Agreement.

 

Section 8.06    Notices.

 

Section 15.02 (Notice) of the Loan Agreement
is hereby incorporated herein as if fully set forth in the body of this Agreement.

 

Section 8.07    Successors
and Assigns Bound; Sale of Mortgage Loan.

 

Section 15.03 (Successors and Assigns Bound;
Sale of Mortgage Loan) of the Loan Agreement is hereby incorporated herein as if fully set forth in the body of this Agreement.

 

Section 8.08    Counterparts.

 

Section 15.04 (Counterparts) of the Loan
Agreement is hereby incorporated herein as if fully set forth in the body of this Agreement.

 

    	Interest Rate Cap Reserve and Security
 Agreement	Form 6442	Page 13
	Fannie Mae	06-16	© 2016 Fannie Mae

     

    

 

Section 8.09    Severability;
Entire Agreement; Amendments.

 

Section 15.07 (Severability; Entire Agreement; Amendments) of
the Loan Agreement is hereby incorporated herein as if fully set forth in the body of this Agreement.

 

Section 8.10    Construction.

 

Section 15.08 (Construction) of the Loan Agreement is hereby
incorporated herein as if fully set forth in the body of this Agreement.

 

Section 8.11    WAIVER
OF TRIAL BY JURY.

 

Section 15.18 (WAIVER OF TRIAL BY JURY) of the Loan Agreement
is hereby incorporated herein as if fully set forth in the body of this Agreement.

 

[Remainder of Page Intentionally Blank]

 

    	Interest Rate Cap Reserve and Security
 Agreement	Form 6442	Page 14
	Fannie Mae	06-16	© 2016 Fannie Mae

     

    

 

IN WITNESS WHEREOF, the parties have signed
and delivered this Agreement under seal (where applicable) or have caused this Agreement to be signed and delivered under seal
(where applicable) by their duly authorized representative. Where applicable law so provides, the parties intend that this Agreement
shall be deemed to be signed and delivered as a sealed instrument.

 

	 	BORROWER:
	 	 
	 	BR CWS CIBOLO CANYON OWNER, LLC, a Delaware limited liability company
	 	 	 
	 	By:	BR CWS 2017 Portfolio N, LLC, a Delaware limited liability company, its sole member
	 	 
	 	 	By: BR CWS Portfolio Member, LLC, a Delaware limited liability company, its Manager
	 	 
	 	 	By:	/s/ Jordan B. Ruddy
	 	 	 	Jordan B. Ruddy
	 	 	 	Authorized Signatory

 

    	Interest Rate Cap Reserve and Security
 Agreement	Form 6442	Page S-1
	Fannie Mae	06-16	© 2016 Fannie Mae

     

    

 

	 	LENDER:
	 	 
	 	FANNIE MAE
	 	 	 
	 	By:	Wells Fargo Bank, a national banking association, its Attorney-in-Fact
	 	 	 	 
	 	 	By:	/s/ Christian Adrian 
	 	 	 	 
	 	 	 	Christian Adrian
	 	 	 	Managing Director

 

    	Interest Rate Cap Reserve and Security
 Agreement	Form 6442	Page S-2
	Fannie Mae	06-16	© 2016 Fannie Mae

     

    

 

EXHIBIT A

TO

INTEREST RATE CAP RESERVE AND SECURITY AGREEMENT

 

Interest Rate Cap Documents

 

See Attached

 

    	Interest Rate Cap Reserve and Security
 Agreement	Form 6442	Page A-1
	Fannie Mae	06-16	© 2016 Fannie Mae

     

    

 

EXHIBIT B

TO

INTEREST RATE CAP RESERVE AND SECURITY
AGREEMENT

 

SUPPLEMENTAL INTEREST RATE CAP RESERVE

AND SECURITY AGREEMENT

 

This SUPPLEMENTALINTERESTRATECAPRESERVEAND
SECURITY AGREEMENT (“Supplemental Agreement”), dated as of ____________,
is made by BR CWS CIBOLO CANYON OWNER, LLC, a Delaware limited liability company, together
with its permitted successors and assigns (“Borrower”), for the benefit
of FANNIE MAE, a corporation duly organized under the Federal National Mortgage Association
Charter Act, as amended, 12 U.S.C. §1716 et seq. and duly organized and existing under the laws of the United States (together
with its successors and assigns, “Fannie Mae”).

 

This Supplemental
Agreement supplements the Interest Rate Cap Reserve and Security Agreement dated as of _____________, by and between Borrower and WELLS
FARGO BANK, NATIONAL ASSOCIATION, a national banking association (the “Original Lender”) (the “Agreement”).

 

RECITALS:

 

A.           Borrower
and Original Lender entered into. the· Agreement pursuant to which Borrower is required to acquire and maintain or replace,
as appropriate, an Interest Rate Cap (as defined in the Agreement) at all times during the term of the Mortgage Loan (as defined
in the Agreement). Each Interest Rate Cap will be represented by one or more Interest Rate Cap Documents (as defined in the Agreement).

 

B.           Original
Lender assigned its interest in the Mortgage Loan to Fannie Mae and Fannie Mae is now the holder of the Note (as defined in the
Agreement) and the mortgagee or beneficiary under the Security Instrument (as defined in the Loan Agreement) and all other Loan
Documents (as defined in the Loan Agreement).

 

C.           Borrower
is entering into a Subsequent Interest Rate Cap (as defined in the Agreement).

 

D.           As
security for Borrower’s obligations under the Loan Documents, Borrower is entering into this Supplemental Agreement.

 

NOW, THEREFORE,
in consideration of the mutual covenants and undertakings set forth in this Supplemental Agreement and other good and valuable
consideration, the receipt and sufficiency of which are acknowledged by Borrower, the parties agree as follows:

 

Section 1.            Capitalized
Terms.

 

All capitalized terms used in this Supplemental
Agreement have the meanings given to those terms in the Agreement or elsewhere in this Supplemental Agreement unless the context
or use clearly indicates a different meaning.

 

    	Interest Rate Cap Reserve and Security
 Agreement	Form 6442	Page B-1
	Fannie Mae	06-16	© 2016 Fannie Mae

     

    

 

Section 2.            Grant
of Security Interest.

 

As security for the due, punctual, full
and exact payment, performance or observance by Borrower of all obligations owing to Lender from time to time under the Loan Documents,
whether at stated maturity, by acceleration or otherwise, whether now outstanding or hereafter arising, Borrower confirms and grants
to Fannie Mae a continuing security interest in and to the Subsequent Interest Rate Cap described in the attached Interest Rate
Cap Documents and all such Interest Rate Cap Documents, whether now owned or hereafter acquired.

 

Section 3.            Acquisition
of Interest Rate Cap; Delivery of Interest Rate Cap Documents.

 

Borrower has, on or before the date of
this Supplemental Agreement, executed and delivered the Interest Rate Cap Documents representing the Subsequent Interest Rate Cap
to the Counterparty and has delivered to Fannie Mae fully executed originals of such Interest Rate Cap Documents to be held under
the Agreement as a part of the Collateral. The documents attached to this Supplemental Agreement as Attachment I are true,
complete and correct copies of the Interest Rate Cap Documents and all amendments thereto, representing the Subsequent Interest
Rate Cap, fully executed by all parties. There is no and shall be no additional security for or any other arrangements or agreements
relating to the Interest Rate Cap or the Interest Rate Cap Documents.

 

Section 4.            Representations
and Warranties.

 

As of the date of this Supplemental Agreement,
Borrower repeats and confirms all representations and warranties made by Borrower in the Agreement.

 

Section 5.            Agreement
Confirmed.

 

Except as supplemented by this Supplemental
Agreement, Borrower confirms the original Agreement as previously supplemented and amended from time to time.

 

Section 6.            Obligations
Remain Absolute.

 

Nothing contained in this Supplemental
Agreement shall relieve Borrower of its primary obligation to pay all amounts due in respect of its obligations under the Loan
Documents.

 

Section 7.            Miscellaneous
Provisions.

 

The provisions of Article 8 of the Agreement
are hereby incorporated into this Supplemental Agreement by this reference to the fullest extent as if the text of such provisions
were set forth in their entirety herein.

 

[Remainder of Page Intentionally Blank]

 

    	Interest Rate Cap Reserve and Security
 Agreement	Form 6442	Page B-2
	Fannie Mae	06-16	© 2016 Fannie Mae

     

    

 

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

 

	 	BORROWER
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	By:	 	(SEAL)
	 	Name: 	 	 
	 	Title:	 	 

 

    	Interest Rate Cap Reserve and Security
 Agreement	Form 6442	Page B-3
	Fannie Mae	06-16	© 2016 Fannie Mae

     

    

 

ATTACHMENT I

TO

INTEREST RATE CAP RESERVE AND SECURITY AGREEMENT

 

Interest Rate Cap Documents for Subsequent
Interest Rate Cap

 

[TO BE SUPPLIED]

 

    	Interest Rate Cap Reserve and Security
 Agreement	Form 6442	Page 1-1
	Fannie Mae	06-16	© 2016 Fannie MaeExhibit 10.18

 

Marquis at Cibolo Canyon

f/k/a The Towers at TPC San Antonio

 

ASSIGNMENT OF MANAGEMENT AGREEMENT

 

This ASSIGNMENT OF
MANAGEMENT AGREEMENT (this “Assignment”) dated as of June 9, 2017, is executed by and among (i) BR CWS CIBOLO
CANYON OWNER, LLC, a Delaware limited liability company (“Borrower”), (ii) FANNIE MAE, a corporation
duly organized under the Federal National Mortgage Association Charter Act, as amended, 12 U.S.C. §1716 et seq. and duly
organized and existing under the laws of the United States (“Lender”), and (iii) CWS APARTMENT HOMES LLC,
a Delaware limited liability company (“Manager”).

 

RECITALS:

 

A.           Borrower
is the owner of a multifamily residential apartment project located in San Antonio, Bexar County, Texas (the “Mortgaged
Property”).

 

B.           Manager
is the managing agent of the Mortgaged Property pursuant to a Management Agreement dated as of June 9, 2017, between Borrower and
Manager (the “Management Agreement”).

 

C.           Borrower
is assuming a loan from Lender in the original principal amount of Eighteen Million Seventy-Eight Thousand and 00/100 Dollars ($18,078,000.00)
(the “Mortgage Loan”), pursuant to that certain Multifamily Loan and Security Agreement dated May 27, 2014 (“Loan
Agreement”), as evidenced by that certain Multifamily Note dated as of May 27, 2014, executed by BRE MF TPC LLC, a Delaware
limited liability company, and made payable to Wells Fargo Bank, National Association, a national banking association, in the amount
of the Mortgage Loan (as amended, restated, replaced, supplemented, or otherwise modified from time to time, the “Note”).

 

D.           In
addition to the Loan Agreement, the Mortgage Loan and the Note are also secured by, among other things, a certain Multifamily Mortgage,
Deed of Trust or Deed to Secure Debt dated as of May 27, 2014, which encumbers the Mortgaged Property (as amended, restated, replaced,
supplemented or otherwise modified from time to time, the “Security Instrument”; the Loan Agreement, the Note,
the Security Instrument, and all other documents evidencing or securing the Mortgage Loan, the “Loan Documents”).

 

E.           Borrower
is willing to assign its rights under the Management Agreement to Lender as additional security for the Mortgage Loan.

 

F.           Manager
is willing to consent to this Assignment and to attorn to Lender upon receipt of notice of the occurrence of an Event of Default
(as hereinafter defined) by Borrower under the Loan Documents, and perform its obligations under the Management Agreement for Lender,
or its successors in interest, or to permit Lender to terminate the Management Agreement without liability.

  

    
	Assignment of Management Agreement
 Fannie Mae	Form 6405
 01-16	Page 1
 © 2016 Fannie Mae

     

    

 

NOW, THEREFORE, for good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound, Borrower, Lender and Manager agree
as follows:

 

AGREEMENTS:

 

		Section 1.	Recitals.

 

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

 

		Section 2.	Assignment.

 

Borrower hereby transfers, assigns and
sets over to Lender, its successors and assigns, all right, title and interest of Borrower in and to the Management Agreement.
Manager hereby consents to the foregoing assignment. The foregoing assignment is being made by Borrower to Lender as collateral
security for the full payment and performance by Borrower of all of its obligations under the Loan Documents. Although it is the
intention of the parties that the assignment hereunder is a present assignment, until the occurrence of any default or failure
to perform or observe any obligation, condition, covenant, term, agreement or provision required to be performed or observed by
Borrower or any other party under any of the Loan Documents beyond any applicable grace or cure period provided for therein (an
“Event of Default”), Borrower may exercise all rights as owner of the Mortgaged
Property under the Management Agreement, except as otherwise provided in this Assignment. The foregoing assignment shall remain
in effect as long as the Mortgage Loan, or any part thereof, remains unpaid, but shall automatically terminate upon the release
of the Security Instrument as a lien on the Mortgaged Property.

 

		Section 3.	Representations and Warranties.

 

Borrower and Manager represent and warrant
to Lender that (a) the Management Agreement is unmodified and is in full force and effect, (b) the Management Agreement is a valid
and binding agreement enforceable against the parties in accordance with its terms, and (c) neither
party is in default in performing any of its obligations under the Management Agreement. Borrower further represents and warrants
to Lender that it has not executed any prior assignment of the Management Agreement, nor has it performed any acts or executed
any other instrument which might prevent Lender from operating under any of the terms and conditions of this Assignment, or which
would limit Lender in such operation. Manager further represents and warrants to Lender that (1)
Manager has not assigned its interest in the Management Agreement, (2) Manager
has no notice of any prior assignment, hypothecation or pledge of Borrower’s interest under the Management Agreement, (3) as of
the date hereof, Manager has no counterclaim, right of set-off, defense or like right against Borrower, and (4) as of the date
hereof, Manager has been paid all amounts due under the Management Agreement.

 

		Section 4.	Lender’s Right to Cure.

 

In the event of any default by Borrower
under the Management Agreement, Lender shall have the right, but not the obligation, upon notice to Borrower and Manager and until
such default is cured, to cure any default and take any action under the Management Agreement to preserve the same. Borrower hereby
grants to Lender the right of access to the Mortgaged Property for this purpose, if such action is necessary. Borrower hereby authorizes
Manager to accept the performance of Lender in such event, without question. Any advances made by Lender to cure a default by Borrower
under the Management Agreement shall become part of the indebtedness and shall bear interest at the Default Rate under the Loan
Agreement and shall be secured by the Security Instrument.

 

    
	Assignment of Management Agreement
 Fannie Mae	Form 6405
 01-16	Page 2
 © 2016 Fannie Mae

     

    

 

		Section 5.	Covenants.

 

		(a)	Borrower Covenants.

 

Borrower hereby covenants with Lender that, during the term
of this Assignment:

 

(I)         Borrower
shall not assign Borrower’s interest in the Management Agreement or any portion thereof, or transfer the responsibility for management
of the Mortgaged Property from Manager to any other person or entity without the prior written consent of Lender;

 

(2)         Borrower
shall not cancel, terminate, surrender, modify or amend any of the terms or provisions of the Management Agreement without the
prior written consent of Lender;

 

(3)         Borrower
shall not forgive any material obligation of the Manager or any other party under the Management Agreement, without the prior written
consent of Lender;

 

(4)         Borrower
shall perform all obligations of Borrower under the Management Agreement in accordance with the provisions thereof, any failure
of which would constitute a default under the Management Agreement; and

 

(5)         Borrower
shall give Lender written notice of any notice or information that Borrower receives which indicates that Manager is terminating
the Management Agreement or that Manager is otherwise discontinuing its management of the Mortgaged Property.

 

Any of the foregoing acts done or suffered to be done without
Lender’s prior written consent shall constitute an Event of Default.

 

		(b)	Affiliated Manager Subordination.

 

Manager agrees that:

 

(1)         (A)
any fees payable to Manager pursuant to the Management Agreement are and shall be subordinated in right of payment, to the extent
and in the manner provided in this Assignment, to the prior payment in full of the indebtedness described in the Loan Agreement,
and (B) the Management Agreement is and shall be subject and subordinate in all respects to the liens, terms, covenants and conditions
of the Security Instrument and the other Loan Documents and to all advances heretofore made or which may hereafter be made pursuant
to the Loan Documents (including all sums advanced for the purposes of (i) protecting or further securing the lien of the Security
Instrument, curing Events of Default by Borrower under the Loan Documents or for any other purposes expressly permitted by the
Loan Documents, or (ii) constructing, renovating, repairing, furnishing, fixturing or equipping
the Mortgaged Property);

 

(2)         if,
by reason of its exercise of any other right or remedy under the Management Agreement, Manager acquires by right of subrogation
or otherwise a lien on the Mortgaged Property which (but for this Section 5(b)) would be senior to the lien of the Security Instrument,
then, in that event, such lien shall be subject and subordinate to the lien of the Security Instrument;

 

    
	Assignment of Management Agreement
 Fannie Mae	Form 6405
 01-16	Page 3
 © 2016 Fannie Mae

     

    

 

(3)         until
Manager receives notice (or otherwise acquires actual knowledge) of an Event of Default, Manager shall be entitled to retain for
its own account all payments made under or pursuant to the Management Agreement;

 

(4)         after
Manager receives notice (or otherwise acquires actual knowledge) of an Event of Default, it will not accept any payment of fees
under or pursuant to the Management Agreement without Lender’s prior written consent;

 

(5)         if,
after Manager receives notice (or otherwise acquires actual knowledge) of an Event of Default, Manager receives any payment of
fees under the Management Agreement, or if Manager receives any other payment or distribution of any kind from Borrower or from
any other person or entity in connection with the Management Agreement which Manager is not permitted by this Assignment to retain
for its own account, such payment or other distribution will be received and held in trust for Lender and unless Lender otherwise
notifies Manager, will be promptly remitted, in cash or readily available funds, to Lender, properly endorsed to Lender, to be
applied to the principal of, interest on and other amounts due under the Loan Documents evidencing and securing the Loan in such
order and in such manner as Lender shall determine in its sole and absolute discretion. Manager hereby irrevocably designates,
makes, constitutes and appoints Lender (and all persons or entities designated by Lender) as Manager’s true and lawful attorney
in fact with power to endorse the name of Manager upon any checks representing payments referred to in this Section 5(b), which
power of attorney is coupled with an interest and cannot be revoked, modified or amended without the written consent of Lender;·

 

(6)         Manager
shall notify (via telephone or email, followed by written notice) Lender of Manager’s receipt from any person or entity other than
Borrower of a payment with respect to Borrower’s obligations under the Loan Documents, promptly after Manager obtains knowledge
of such payment; and

 

(7)         during
the term of this Assignment, Manager will not commence or join with any other creditor in commencing any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings with respect to Borrower, without Lender’s prior written consent.

 

		Section 6.	Lender’s Rights Upon an Event of Default.

 

(a)           Upon
receipt by Manager of written notice from Lender that an Event of Default has occurred and is continuing, Lender shall have the
right to exercise all rights as owner of the Mortgaged Property under the Management Agreement.

 

(b)           Borrower
agrees that after Borrower receives notice (or otherwise has actual knowledge) of an Event of Default, it will not make any payment
of fees under or pursuant to the Management Agreement without Lender’s prior written consent.

 

		Section 7.	Termination of Management Agreement.

 

After the occurrence and during the continuance
of an Event of Default, Lender (or its nominee) shall have the right any time thereafter to terminate the Management Agreement,
without cause and without liability, by giving written notice to Manager of its election to do so. Lender’s notice shall specify
the date of termination, which shall not be less than thirty (30) days after the date of such notice.

 

    
	Assignment of Management Agreement
 Fannie Mae	Form 6405
 01-16	Page 4
 © 2016 Fannie Mae

     

    

 

		Section 8.	Books and Records.

 

On the effective date of termination of
the Management Agreement, Manager shall turn over to Lender all books and records relating to the Mortgaged Property (copies of
which may be retained by Manager, at Manager’s expense), together with such authorizations and letters of direction addressed to
tenants, suppliers, employees, banks and other parties as Lender may reasonably require. Manager shall cooperate with Lender in
the transfer of management responsibilities to Lender or its designee. A final accounting of unpaid fees (if any) due to Manager
under the Management Agreement shall be made within sixty (60) days after the effective date of termination, but Lender shall not
have any liability or obligation to Manager for unpaid fees or other amounts payable under the Management Agreement which accrue
before Lender (or its nominee) acquires title to the Mortgaged Property, or Lender becomes a mortgagee in possession.

 

		Section 9.	Notice.

 

		(a)	Process of Serving Notice.

 

All notices under this Assignment 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;

 

(C)         sent
by overnight courier; or

 

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

 

(2)         addressed
to the intended recipient at its respective address set forth at the end of this Assignment; 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 any express courier service.

 

		(b)	Change of Address.

 

Any party to this Assignment may change
the address to which notices intended for it are to be directed by means of notice given to the other parties to this Assignment
in accordance with this Section 9.

 

		(c)	Default Method of Notice.

 

Any required notice under this Assignment which does not specify
how notices are to be given shall be given in accordance with this Section 9.

 

    
	Assignment of Management Agreement
 Fannie Mae	Form 6405
 01-16	Page 5
 © 2016 Fannie Mae

     

    

 

		(d)	Receipt of Notices.

 

Borrower, Manager and
Lender shall not refuse or reject delivery of any notice given in accordance with this Assignment. Each party is required to acknowledge,
in writing, the receipt of any notice upon request by the other party.

 

		Section 10.	Counterparts.

 

This Assignment may be executed in any
number of counterparts, each of which shall be considered an original for all purposes; provided, however, that all such counterparts
shall constitute one and the same instrument.

 

		Section 11.	Governing Law; Venue and Consent to Jurisdiction; Waiver
of Jury Trial.

 

		(a)	Governing Law.

 

This Assignment shall be governed by the
laws of the jurisdiction in which the Mortgaged Property is located (the “Property Jurisdiction”), without regard
to the application of choice of law principles.

 

		(b)	Venue; Consent to Jurisdiction.

 

Any controversy arising under or in relation
to this Assignment shall be litigated exclusively in the Property Jurisdiction without regard to conflicts of laws principles.
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 Assignment. 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.

 

		(c)	WAIVER OF TRIAL BY JURY.

 

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

 

		Section 12.	Severability; Amendments.

 

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

 

    
	Assignment of Management Agreement
 Fannie Mae	Form 6405
 01-16	Page 6
 © 2016 Fannie Mae

     

    

 

		Section 13.	Construction.

 

(a)          The
captions and headings of the sections of this Assignment are for convenience only and shall be disregarded in construing this Assignment.

 

(b)          Any
reference in this Assignment 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
Assignment or to a Section or Article of this Assignment. All exhibits and schedules attached to or referred to in this Assignment,
if any, are incorporated by reference into this Assignment.

 

(c)          Any
reference in this Assignment to a statute or regulation shall be construed as referring to that statute or regulation as amended
from time to time.

 

(d)          Use
of the singular in this Assignment includes the plural and use of the plural includes the singular.

 

(e)          As
used in this Assignment, the term “including” means “including, but not limited to” or “including, without
limitation,” and is for example only and not a limitation.

 

(f)          Whenever
Borrower’s knowledge is implicated in this Assignment or the phrase “to Borrower’s knowledge” or a similar phrase is
used in this Assignment, 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.         ·

 

(g)          Unless
otherwise provided in this Assignment, if Lender’s approval, designation, determination, selection, estimate, action or decision
is required, permitted or contemplated hereunder, such approval, designation, determination, selection, estimate, action or decision
shall be made in Lender’s sole and absolute discretion.

 

(h)          All
references in this Assignment 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.

 

[Remainder of Page Intentionally Blank]

 

    
	Assignment of Management Agreement
 Fannie Mae	Form 6405
 01-16	Page 7
 © 2016 Fannie Mae

     

    

 

IN WITNESS
WHEREOF, Borrower, Lender and Manager have signed and delivered this Assignment under seal (where applicable) or have
caused this Assignment to be signed and delivered under seal (where applicable), each by its duly authorized representative. Where
applicable law so provides, Borrower, Lender and Manager intend that this Assignment shall be deemed to be signed and delivered
as a sealed instrument.

 

	 	BORROWER:
	 	 
	 	BR CWS CIBOLO CANYON OWNER, LLC, a
	 	Delaware limited liability company

 

	 	By: 	BR CWS 2017 Portfolio JV, LLC, a Delaware 

limited liability company, its sole member

 

	 	By:	BR CWS Portfolio member, LLC, a
	 	 	Delaware limited liability company, its
	 	 	manager

 

	 	 	By: 	/s/ Jordan B Ruddy
	 	 	 	Jordan B Ruddy
	 	 	 	Authorized Signatory

 

	 	Address:	c/o Bluerock Real Estate, L.L.C.
	 	 	
        712 Fifth Avenue, 9th Floor

        New York, New York 10019

        Attention: Jordan B. Ruddy

	 	 	 
	 	with a copy to: 	 
	 	 	
        CWS Capital Partners LLC

        14 Corporate Plaza, Suite 210

        Newport Beach, CA 92660

 

    
	Assignment of Management Agreement
 Fannie Mae	Form 6405
 01-16	Page S-1
 © 2016 Fannie Mae

     

    

 

	 	LENDER: 
	 	 
	 	FANNIE MAE

 

	 	By: 	Wells Fargo Bank, National Association, a

 national banking association, its Attorney-in-Fact

 

	 	By:	/s/ Christian Adrian
	 	 	Christian Adrian
	 	 	Managing Director

 

	 	Address:	Attention: Multifamily Operations -
	 	 	Asset Management
	 	 	Drawer AM
	 	 	3900 Wisconsin Avenue, N.W.
	 	 	Washington, DC 20016

 

    
	Assignment of Management Agreement
 Fannie Mae	Form 6405
 01-16	Page S-2
 © 2016 Fannie Mae

     

    

 

	 	MANAGER:
	 	 
	 	CWS APARTMENT HOMES LLC, a Delaware 
	 	limited liability company

 

	 	By:	/s/ Gary Carmell
	 	Name:	Gary Carmell
	 	Title:	President

 

	 	Address:	c/o CWS Capital Partners, LLC
	 	 	14 Corporate Plaza, Suite 210
	 	 	Newport Beach, California 92660

 

    
	Assignment of Management Agreement
 Fannie Mae	Form 6405
 01-16	Page S-3
 © 2016 Fannie Mae

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