Document:

Exhibit 10.11

 

PROMISSORY NOTE

 

	$18,625,000.00	Wake Forest, North Carolina
	 	January 21, 2014

 

FOR VALUE RECEIVED,
WAKE FOREST APARTMENTS LLC ("Maker"), a Delaware limited liability company, having an office at 19950 West Country
Club Drive, Suite 800, Aventura, Florida 33180, Attn: Richard Ross, promises to pay to NEW YORK LIFE INSURANCE COMPANY ("Holder"),
a New York mutual insurance company, having its principal office at 51 Madison Avenue, New York, New York 10010-1603, or order,
without offset, at its principal office in New York, New York, or at such other place as may be designated in writing by Holder,
the principal sum of Eighteen Million Six Hundred Twenty-Five Thousand and No/100 Dollars ($18,625,000.00), lawful money of the
United States of America, together with interest thereon at the rate ("Interest Rate") of three and ninety-four hundredths
percent (3.94%) per annum. Interest only installments in arrears shall be payable in monthly payments of Sixty-One Thousand One
Hundred Fifty-Three and No/100 Dollars ($61,153.00) commencing March 10, 2014 and payable on the tenth (10th) day of each and every
month thereafter until and including February 10, 2021 ("Maturity Date"). The foregoing monthly payments of interest
only are sometimes collectively referred to as “Payments”. In addition, on the Maturity Date, Maker shall pay
to Holder the entire unpaid principal balance of this Note, together with all interest then accrued thereon pursuant to this Note
and all other Obligations (as hereinafter defined) then unpaid pursuant to the Loan Instruments (as hereinafter defined). Holder
shall apply each Payment, when received, first to the Obligations, other than principal and interest, which are then due and payable,
but only if so elected by Holder in its sole and absolute discretion, and then to the payment of accrued interest on the outstanding
principal balance hereof and the remainder to the reduction of such principal balance. Interest, if any, from the date of disbursement
through and including February 9, 2014, is due and payable on the date of this Note and shall be computed on the basis of the actual
number of days in such period over a 360 day year.

 

This Note is secured
by, among other things, (a) a Deed of Trust, Assignment of Leases and Rents and Security Agreement and Fixture Filing ("Deed
of Trust"), dated as of the date hereof, granted by Maker to a designated trustee for the benefit of Holder and encumbering
premises and other property ("Secured Property") more particularly described in the Deed of Trust and (b) an Assignment
of Leases, Rents, Income and Cash Collateral, dated as of the date hereof, from Maker to Holder. Obligations, Loan Instruments
and all other capitalized terms used in this Note and not expressly defined herein shall have the meanings assigned to such terms
in the Deed of Trust. The terms and provisions of the Loan Instruments, other than this Note, are hereby fully incorporated into
this Note by reference.

 

In the event that electronic
fund transfer debiting is established for regularly scheduled payments under the Loan Instruments, Maker will cooperate with Holder
and provide such documentation as is required to effectuate such payments by electronic fund transfer debit transactions through
the Automated Clearing House network. Once the payment authorization is established, the failure of the electronic funds transfer
debit entry transaction to be timely completed, for whatever reason, other than Holder’s failure to initiate the debit, shall
not relieve Maker of its obligations to make all payments required hereunder or under the other Loan Instruments when due, and
to comply with Maker’s other obligations under the Loan Instruments.

 

From and after the
earlier to occur of an Event of Default or the Maturity Date, the aggregate amount of the Obligations shall automatically bear
interest at an annual rate ("Increased Rate") equal to the Interest Rate plus five percentage points, unless compliance
with applicable law requires a lesser interest rate, in which event the aggregate amount of the Obligations shall bear interest
at the maximum rate permitted by law. After such occurrence, the Increased Rate of interest shall apply to the Obligations both
before and after any judgment on the Obligations evidenced by this Note.

 

    	WCSR 31792864	 	Loan No. 374-0551

    	 

    

 

Any default in the
making of any Payment or in the making of any payment due pursuant to Section 1.04 of the Deed of Trust or in the making of any
other deposit or reserve due pursuant to any Loan Instrument on the date the same is due will result in loss and additional expense
to Holder in servicing the Obligations, handling such delinquent payments and meeting its other financial obligations. Accordingly,
upon the occurrence of any such default, Maker shall pay, without regard to any grace periods, a late charge ("Late Charge")
of four percent (4%) of each such overdue payment; provided, however, no Late Charge shall apply to the balloon payment due on
the Maturity Date. Maker agrees that (a) the exact amount of such loss and additional expense is extremely difficult, if not impossible
to determine, (b) the Late Charge is a reasonable estimate of such loss and expense and therefore does not constitute a penalty
and (c) in addition to, and not in lieu of, the exercise of any other remedies to which Holder may be entitled, Holder may collect
from Maker all Late Charges for the purpose of defraying such loss and expense, unless applicable law requires a lesser such charge,
in which event Holder may collect from Maker a Late Charge at the maximum rate permitted by applicable law, and in no event shall
such charge, if construed to be interest, together with other interest to be paid on the indebtedness evidenced by this Note or
indebtedness arising under any instrument securing the payment hereof, exceed the maximum interest permitted under the laws of
the State.

 

Maker may not prepay
the Obligations prior to March 10, 2016 ("Closed Period"). On or at any time after March 10, 2016, Maker may prepay the
outstanding principal balance of this Note (in whole but not in part), together with accrued interest thereon to the date of prepayment
and any other outstanding Obligations, provided that (a) Maker gives Holder not less than thirty (30) days and not more than one
hundred (100) days prior written notice of Maker’s intention to make such prepayment, (b) at least ten (10) business days
prior to the prepayment date, Maker gives Holder written notice confirming the actual prepayment date and (c) in addition to paying
the entire outstanding principal balance of this Note, all accrued interest thereon and any other outstanding Obligations, Maker
pays to Holder the Make-Whole Amount. Any prepayment notice given by Maker shall be deemed null and void if the prepayment covered
by such notice is not made within thirty (30) days of the date specified in Maker’s prepayment notice as the designated date
for prepayment.

 

"Make-Whole Amount"
with respect to any prepayment that occurs after the Closed Period through and including March 9, 2019 means an amount equal to
the greater of (a) one percent (1%) of the then entire outstanding principal balance of this Note or (b) the present value
as of the date of prepayment of the remaining scheduled payments of principal and interest (including any balloon payment), determined
by discounting such payments at the Monthly Equivalent Treasury Security Rate (as hereinafter defined), less the amount of principal
being prepaid, provided such difference shall not be less than zero. "Monthly Equivalent Treasury Security Rate" means
the rate which, when compounded monthly, results in a yield that is equivalent to the yield on the Most Recently Auctioned U.S.
Treasury Security (as hereinafter defined), which is compounded semi-annually plus thirty-five (35) basis points per annum, having
the same maturity date as the Loan (or if there is not a Most Recently Auctioned U.S. Treasury Security with the same maturity
date as the maturity date of the Loan, then the linearly interpolated yield-to-maturity of the two Most Recently Auctioned U.S.
Treasury Securities having the next longer and the next shorter remaining terms to maturity), as reported in the Bloomberg News
Service (or, if Bloomberg New Service is no longer available, The Wall Street Journal or another daily financial service
or publication of national circulation selected by Holder) as of the close of business on the second (2nd) business day
preceding the date of prepayment. “Most Recently Auctioned U.S. Treasury Security” means the U.S. Treasury bonds, notes
and bills with maturities of thirty (30) years, ten (10) years, five (5) years, three (3) years, two (2) years, one (1) year, six
(6) months and three (3) months that were most recently auctioned by the United States Treasury Department as of the date the Make-Whole
Amount is calculated. 

 

    	WCSR 31792864	2	Loan No. 374-0551

    	 

    

 

“Make Whole Amount”
with respect to any prepayment that occurs after March 9, 2019 through and including March 9, 2020, means an amount equal to two
percent (2%) of the then entire outstanding principal balance of this Note.

 

“Make Whole Amount”
with respect to any prepayment that occurs after March 9, 2020 until the Maturity Date, means an amount equal to one percent (1%)
of the then entire outstanding principal balance of this Note.

 

Maker waives any right
of prepayment except as expressly provided herein and as may be provided in the other Loan Instruments.

 

Notwithstanding the
foregoing, if Maker prepays all Obligations on or after October 10, 2020 and after not less than thirty (30) days prior written
notice to Holder, Maker shall not be required to pay the Make-Whole Amount.

 

If the outstanding
principal balance of this Note or any portion thereof shall become due and payable or shall be paid as a result of (a) an Event
of Default (which Event of Default shall be presumed to be, and conclusively shall be deemed to be a willful default and a deliberate
attempt on Maker’s part to avoid payment of the Make-Whole Amount), (b) the exercise by Maker or any other person of any
right of redemption or the taking by Maker or any other person of any other action to prevent a foreclosure of the Secured Property,
(c) any prepayment of the Loan in connection with a foreclosure or similar proceeding or a foreclosure judgment, (d) a casualty
or condemnation with respect to the Secured Property, or (e) any other prepayment not permitted by the Loan Instruments, then Maker
shall pay to Holder the Make-Whole Amount computed, to the extent not prohibited by applicable law, as if Maker had elected to
prepay this Note, as provided in the preceding paragraphs, on the date of such Event of Default, exercise, action, casualty or
condemnation, as applicable. If such Event of Default, exercise, action, casualty or condemnation occurs during the Closed Period,
then, to the extent not prohibited by applicable law, the Make-Whole Amount shall be equal to the greater of (a) ten percent (10%)
of the principal balance of this Note then unpaid or (b) the Make-Whole Amount, as calculated in the manner set forth in the immediately
preceding paragraphs.

 

Notwithstanding the
foregoing, in the event of a casualty or condemnation with respect to the Secured Property, if no Event of Default then exists
beyond any applicable notice and cure period and Holder is not willing to permit the insurance proceeds or condemnation award,
as applicable, to be used for the restoration of the Secured Property and the Loan is prepaid as a result of the casualty or condemnation,
then no Make-Whole Amount shall be due with respect to the application of the insurance proceeds or condemnation award to the Obligations.

 

From and after the
existence of an Event of Default, Holder, at its option, may declare all Obligations to be immediately due and payable, then or
thereafter, as Holder may elect, regardless of the stated Maturity Date of this Note.

 

If Holder collects
all or any part of the Obligations by an action, at law or in equity, or in any bankruptcy, receivership or other court proceeding
(whether at the trial or appellate level), or if this Note is placed in the hands of attorney(s) for collection, Maker shall pay,
in addition to the principal and interest due or deemed to be due, whether by acceleration or otherwise, and in addition to the
Make-Whole Amount, if due hereunder (a) all costs, including, without limitation, reasonable attorneys’ fees and expenses,
of collecting or attempting to collect all amounts due pursuant to this Note and all other Obligations, of enforcing or attempting
to enforce Holder’s rights and remedies pursuant to the Loan Instruments and of protecting the collateral securing this Note,
(b) all Late Charges due pursuant to this Note and (c) interest, at the Increased Rate, computed on the amount of the Obligations.

 

    	WCSR 31792864	3	Loan No. 374-0551

    	 

    

 

The failure by Holder
to exercise any right, power, privilege, remedy or option as to maturity, foreclosure or otherwise, provided in any Loan Instrument
or otherwise available at law or in equity (each a “Remedy” and collectively, “Remedies”) before or after
any Event of Default, in any one or more instances, or the acceptance by Holder of any partial payment or partial performance,
shall not constitute a waiver of any default or any Remedy, each of which shall remain continuously in force, until waived in writing
by Holder. Holder, at its option, may rescind, in writing, any acceleration of this Note, but the tender and acceptance of partial
payment or partial performance alone shall not rescind or in any other way affect any acceleration of this Note or the exercise
by Holder of any of its Remedies.

 

Maker and Holder intend
to comply strictly with all usury laws now or hereafter in force in the jurisdiction ("State") in which the Secured Property
is located, and all interest and loan charges, including without limitation any Late Charge, payable pursuant to this Note or any
other Loan Instrument shall be reduced to the maximum amount which is not in excess of the maximum non-usurious rates of interest
and loan charges applicable to this Note or any other Loan Instrument ("Legal Rate") allowed under the usury laws of
the State, as now or hereafter construed by the courts having jurisdiction over such matters. If the aggregate of all interest
and loan charges (whether designated as interest, Late Charges, Make-Whole Amount or otherwise) contracted for, chargeable or receivable
pursuant to this Note or any other Loan Instrument, whether upon regular payment or acceleration or otherwise, exceeds the Legal
Rate, it shall conclusively be deemed a mutual mistake. Such excess shall be canceled automatically, and, if theretofore paid,
shall, at the option of Holder, either be rebated to Maker or credited in reduction of the outstanding principal balance of this
Note, or, if this Note has been repaid, such excess shall be rebated to Maker. In the event of a conflict between the provisions
of this paragraph and the provisions of any other portion of this Note or any other Loan Instrument, the provisions of this paragraph
shall control.

 

Except as otherwise
expressly provided in the Loan Instruments, Maker waives all requirements for presentment, protest, notice of protest, notice of
dishonor, demand for payment and diligence in collection of this Note or the Loan Instruments, and any and all other notices and
matters of a like nature, except for those expressly required by the Deed of Trust. Without notice to Maker and without discharging
Maker’s liability hereunder, Maker consents to any extension of time (whether one or more) of payment of this Note, release
of all or any part of the security for the payment of this Note or release of any Person liable for payment of this Note.

 

This Note may be changed
only by an agreement, in writing, signed by Maker and Holder. Maker waives and renounces all homestead exemption rights as to the
Obligations or any renewal or extension thereof. No failure or delay on the part of Holder in exercising any Remedy pursuant to
this Note or any Loan Instrument, and no course of dealing between Maker and Holder, shall operate as a waiver of any Remedy, nor
shall any single or partial exercise of any Remedy preclude any other or further exercise thereof or the exercise of any other
Remedy. All Remedies expressly provided for in the Loan Instruments are cumulative, and are not exclusive of any rights, powers,
privileges or remedies which Holder would otherwise have at law or equity. No notice to or demand on Maker in any case shall entitle
Maker to any other or further notice or demand in similar or other circumstances, nor shall any such notice or demand constitute
a waiver of the right of Holder to take any other or further action in any circumstances without notice or demand.

 

    	WCSR 31792864	4	Loan No. 374-0551

    	 

    

 

The obligations of
each Person and entity comprising Maker shall be joint and several. The unenforceability or invalidity of any provision of this
Note as to any Person or circumstance shall not render that provision unenforceable or invalid as to any other Person or circumstance,
and all provisions hereof, in all other respects, shall remain valid and enforceable.

 

If an Event of Default
has occurred (and regardless of whether or not it has been cured), Holder may exercise any and all Remedies, and shall have full
recourse to the Secured Property and to any other collateral given by Maker to secure any or all of the Obligations, provided that
any judgment obtained by Holder in any proceeding to enforce the Remedies shall be enforced only against the Secured Property and/or
such other collateral. Notwithstanding the foregoing, Holder may name Maker or any of its successors or assigns or any Person holding
under or through them as parties to any actions, suits or other proceedings initiated by Holder to enforce any Remedies against
the Secured Property and/or such other collateral, including without, limitation, any action, suit or proceeding to foreclose the
lien of the Deed of Trust against the Secured Property or to otherwise realize upon any other lien or security interest created
in any other collateral given to secure the payment of any or all of the Obligations. The restriction on enforcement contained
in the first sentence of this paragraph shall not apply to, and Maker shall be personally liable for, and Holder may seek
and enforce judgment against Maker for:

 

		(i)	any and all losses, claims, damages, costs, expenses and/or liabilities, including, without limitation, reasonable attorneys’
fees and expenses, incurred by Holder:

 

		(a)	relating to or as a result of any material misstatement of fact (1) by or on behalf of, Maker or
Guarantor to Holder or Holder’s advisor relating to the Loan or (2) contained in any Loan Instrument,

 

		(b)	relating to or as a result of fraud relating to the Loan, the Loan Instruments, or any documents,
materials or other information delivered by or on behalf of Maker or Guarantor to Holder, Holder’s advisor or their respective
counsel relating to the Loan,

 

		(c)	relating to or as a result of misapplication of (1) insurance proceeds in a manner which is not
in accordance with the provisions of the Loan Instruments, (2) condemnation awards in a manner which is not in accordance with
the provisions of the Loan Instruments, (3) trust funds or Lessee security deposits which are received by or on behalf of Maker
and are neither turned over to Holder or used in compliance with the Loan Instruments, or (4) Rents, issues, profits or other proceeds
from the Secured Property received by, or on behalf of, Maker or Guarantor and not otherwise applied to the Loan or to payment
of Secured Property operating expenses as required by the Loan Instruments,

 

		(d)	relating to or as a result of the breach of any representation or warranty contained in the Sections
of the Deed of Trust pertaining to environmental matters, including without limitation, Sections 1.05E(4), 2.03(C) and 2.03(D),
or any default with respect to any covenant contained in the Sections of the Deed of Trust pertaining to environmental matters,
including without limitation, Section 1.05(E),

 

		(e)	as a result of any default with respect to Maker’s covenant to pay Impositions or insurance
premiums pursuant to the Deed of Trust other than Impositions or insurance premiums accruing during periods after which Maker no
longer has title to the Secured Property by reason of foreclosure of the Deed of Trust or tender of a deed in lieu of foreclosure
of the Deed of Trust to Holder or with respect to Maker’s covenant to obtain and maintain the insurance required by the Deed
of Trust, including without limitation, the Terrorism Insurance through the date of foreclosure of the Deed of Trust or the date
Maker tenders a deed in lieu of foreclosure of the Deed of Trust to Holder of the Secured Property,

 

    	WCSR 31792864	5	Loan No. 374-0551

    	 

    

 

		(f)	arising from, in respect of, as a consequence of, or in connection with: (1) the existence of any
circumstance or the occurrence of any action described in Section 1.05E(1) of the Deed of Trust, (2) claims asserted by any Person
(including, without limitation, any Governmental Agency) in connection with, or in any way arising out of, the presence, storage,
use, disposal, generation, transportation or treatment of any Hazardous Material on, in, under or about the Secured Property, or
(3) the violation or claimed violation of any law relating to any Hazardous Material or any other Environmental Requirement in
regard to the Secured Property, regardless of whether or not such violation or claimed violation occurred prior to or after the
date of this Note or whether or not such violation or claimed violation occurred prior to or after the time that Maker became the
owner of the Secured Property, and/or

 

		(g)	as a result of any intentional, bad faith waste of the Secured Property committed by Maker or its
agents (such damages to include, without limitation, all repair costs incurred by Holder), (For purposes of this subparagraph,
“bad faith waste” is intended to mean the neglect or misconduct of Maker resulting in material damage to the Secured
Property or any portion thereof);

 

		(ii)	all outstanding principal, interest and other Obligations, including the Make-Whole Amount:

 

		(a)	if there shall be a violation of Section 1.11 of the Deed of Trust that is not waived or consented
to by Holder in writing; and/or

 

		(b)	in the event that (1) any petition for bankruptcy, reorganization or arrangement pursuant to federal
bankruptcy law, or any similar federal or state law, shall be filed by, consented to or acquiesced in by Maker or any Guarantor
and/or if any proceeding for the dissolution, liquidation or receivership of Maker or any Guarantor shall be instituted by Maker
or any Guarantor and/or (2) Maker or any Guarantor shall be the subject of any petition or proceeding for an involuntary bankruptcy,
reorganization or arrangement pursuant to federal bankruptcy law, or any similar federal or state law and/or the subject of any
liquidation, dissolution, receivership or other similar proceeding, in which Maker or any Guarantor or any affiliate of such parties
colludes with, or otherwise assists, the petitioning party or solicits or causes to be solicited petitioning creditors; and/or

 

		(c)	if there shall be a violation of Section 5.20 of the Deed of Trust; and/or

 

		(d)	if the Deed of Trust or any of the other Loan Instruments are deemed fraudulent conveyances or
preferences or are otherwise deemed void pursuant to any principles limiting the rights of creditors, whether such claims, demands
or assertions are made under the United States Bankruptcy Code (as amended or replaced from time to time), including, without limitation,
under Sections 544, 547 or 548 thereof, or under any applicable state fraudulent conveyance statutes or similar laws; and

 

		(iii)	in the event of a loss which would be covered by the Terrorism Insurance required by the Loan Instruments,
an amount equal to the deductible on such Terrorism Insurance, which amount shall either be applied by Holder to the debt secured
by the Deed of Trust or disbursed by Holder for the repair and restoration of the Secured Property, all in accordance with the
terms of the Loan Instruments.

 

    	WCSR 31792864	6	Loan No. 374-0551

    	 

    

 

The restriction on
enforcement contained in the first sentence of the preceding paragraph shall not apply to the Environmental Indemnity Agreement
of even date herewith executed by Maker and the other indemnitors, if any, in favor of Holder and/or to the obligations of any
Guarantor. It is expressly understood and agreed, however, that nothing contained in the preceding paragraph shall (a) in any manner
or way constitute or be deemed to be a release of the Obligations or otherwise affect or impair the enforceability of the liens,
assignments, rights and security interests created by the Deed of Trust or any of the other Loan Instruments or any future advance
or any related agreements or (b) preclude Holder from foreclosing the Deed of Trust or from exercising its other remedies set forth
in the Deed of Trust or the Assignment, or from enforcing any of its rights and remedies in law or in equity (including, without
limitation, injunctive and declaratory relief, restraining orders and receivership proceedings), except as provided in the preceding
paragraph.

 

If any payment required
hereunder or under any other Loan Instrument becomes due on a Saturday, Sunday, or legal holiday in the state in which the Premises
are located (those being non-business days), then such payment shall be due and payable on the immediately following business day.

 

Notwithstanding anything
herein or in any other Loan Instrument to the contrary, whenever the term “reasonable attorneys’ fees” or other
similar phrase is used it shall mean attorney and paralegal fees actually incurred (based on the actual number of hours worked
by legal counsel and paralegals multiplied by the usual and customary hourly rate then in effect), notwithstanding any statutory
presumption set forth in N.C.G.S. §6-21.2 or otherwise to the contrary. The foregoing provision shall not be deemed to limit
the obligation to pay out-of-pocket expenses and costs as provided in the Loan Instruments.

 

"Maker" and
"Holder" shall be deemed to include the respective heirs, administrators, legal representatives, successors and assigns
of Maker and Holder.

 

Time is of the essence
with respect to each and every provision hereof.

 

This Note shall be
governed by, and construed and enforced in accordance with the laws of the State, other than such laws with respect to conflicts
of laws.

 

In the event of any
inconsistencies between the terms of this Note and the terms of any other Loan Instruments, the terms of this Note shall prevail.

 

This Note is intended
to be and shall be construed as an instrument under seal.

 

[Signature Page Follows]

 

    	WCSR 31792864	7	Loan No. 374-0551

    	 

    

 

[Promissory Note – Signature Page]

 

IN WITNESS WHEREOF,
maker has executed this Note under seal as of the date first above written.

 

	 	WAKE FOREST APARTMENTS LLC, 
	 	a Delaware limited liability
company           (SEAL)
	 	 	 	 	 
	 	By:	Trade Street Operating Partnership, LP, a Delaware
	 	 	limited partnership,
its Sole Member             (SEAL)
	 	 	 	 	 
	 	 	By:	Trade Street OP GP, LLC, a Delaware limited
	 	 	 	liability company, its
general partner      (SEAL)
	 	 	 	 	 
	 	 	 	By:	Trade Street Residential, Inc., a Maryland
	 	 	 	 	corporation, its sole member      (SEAL)

 

	 	By:	/s/ Richard Ross	(SEAL)
	 	Name:	Richard Ross	 
	 	Title:	Chief Financial Officer	 

 

    	WCSR 31792864	 	Loan No. 374-0551Exhibit 10.12

 

TRADE STREET OPERATING PARTNERSHIP, LP,
a Delaware limited partnership,

and TRADE STREET RESIDENTIAL, INC.,
a Maryland corporation,

(Guarantor)

 

in favor of

 

NEW YORK LIFE INSURANCE COMPANY

(Lender)

 

GUARANTY

 

Dated: As of January 21, 2014

 

    	Loan No. 374-0551
WCSR 31793071
	 	 

    	 

    

 

GUARANTY

 

This GUARANTY ("Guaranty")
is executed as of the date set forth on the cover page hereof, by TRADE STREET OPERATING PARTNERSHIP, LP, a Delaware limited
partnership (“TS Partnership”) having an address at 19950 West Country Club Drive, Suite 800, Aventura, Florida 33180,
and TRADE STREET RESIDENTIAL, INC., a Maryland corporation (“TSR, Inc.”), having an address at 19950 West Country
Club Drive, Suite 800, Aventura, Florida 33180 (TS Partnership and TSR, Inc. are collectively referred to herein as "Guarantor")
for the benefit of NEW YORK LIFE INSURANCE COMPANY, a New York mutual insurance company having an address at 51 Madison
Avenue, New York, New York 10010 ("Lender").

 

WITNESSETH:

 

WHEREAS, pursuant to
that certain Promissory Note, dated of even date herewith, executed by Wake Forest Apartments LLC, a Delaware limited liability
company ("Borrower") and payable to the order of Lender in the original principal amount of $18,625,000.00 (together
with all renewals, modifications, increases and extensions thereof, the "Note"), Borrower has become indebted, and may
from time to time be further indebted, to Lender with respect to a loan ("Loan") which is secured by the lien and security
interest of a Deed of Trust, Assignment of Leases and Rents and Security Agreement and Fixture Filing, of even date herewith (the
"Deed of Trust"), and further evidenced, secured or governed by other instruments and documents executed in connection
with the Loan (together with the Note and Deed of Trust, the "Loan Instruments"); and

 

WHEREAS, Lender is not
willing to make the Loan, or otherwise extend credit, to Borrower unless Guarantor unconditionally guarantees payment and performance
to Lender of the Guaranteed Obligations (as herein defined); and

 

WHEREAS, Guarantor is
the owner directly or indirectly of interests in Borrower, and Guarantor will directly benefit from Lender's making the Loan to
Borrower.

 

NOW, THEREFORE, as an
inducement to Lender to make the Loan to Borrower, and to extend such additional credit as Lender may from time to time agree to
extend under the Loan Instruments, and for other good and valuable consideration, the receipt and legal sufficiency of which are
hereby acknowledged, the parties do hereby agree as follows:

 

1.1           ARTICLE I

 

NATURE AND SCOPE OF GUARANTY

 

1.1           Guaranty
of Obligation. Guarantor hereby irrevocably and unconditionally guarantees to Lender and its successors and assigns the
payment and performance of the Guaranteed Obligations as and when the same shall be due and payable, whether by lapse of time,
by acceleration of maturity or otherwise. Guarantor hereby irrevocably and unconditionally covenants and agrees that it is liable
for the Guaranteed Obligations as a primary obligor and that it shall fully perform each and every term and provision hereof. The
recitals and premises of this Guaranty are incorporated herein by reference and shall be deemed to be a part of this Guaranty.

 

    	Loan No. 374-0551
WCSR 31793071
	 	 

    	 

    

 

1.2           Definition
of Guaranteed Obligations. As used herein, the term “Guaranteed Obligations” means all of Borrower’s
present and future obligations under the Note and Deed of Trust arising from, under or out of the Non-Recourse Exceptions (as defined
in the Deed of Trust) together with all losses, claims, damages, costs, expenses and /or liabilities, including, without limitation,
attorney’s fees and expenses, incurred by Lender in connection therewith.

 

1.3           Nature
of Guaranty. This Guaranty is an irrevocable, absolute, continuing guaranty of payment and performance and not a guaranty
of collection. This Guaranty may not be revoked by Guarantor and shall continue to be effective with respect to any Guaranteed
Obligations arising or created after any attempted revocation by Guarantor and after (if Guarantor is a natural person) Guarantor's
death (in which event this Guaranty shall be binding upon Guarantor's estate and Guarantor's legal representatives and heirs).
The fact that at any time or from time to time the Guaranteed Obligations may be increased or reduced shall not release or discharge
the obligation of Guarantor to Lender with respect to the Guaranteed Obligations. This Guaranty may be enforced by Lender and any
subsequent holder of the Note and shall not be discharged by the assignment or negotiation of all or part of the Note.

 

1.4           Guaranteed
Obligations Not Reduced by Offset. The Guaranteed Obligations and the liabilities and obligations of Guarantor to Lender
hereunder shall not be reduced, discharged or released because or by reason of any existing or future offset, claim or defense
of Borrower, or any other party, against Lender, or any other party, or against payment of the Guaranteed Obligations, whether
such offset, claim or defense arises in connection with the Guaranteed Obligations (or the transactions creating the Guaranteed
Obligations) or otherwise.

 

1.5           Payment
By Guarantor. If all or any part of the Guaranteed Obligations shall not be punctually paid when due, whether at demand,
maturity, acceleration or otherwise, Guarantor shall, immediately upon demand by Lender, and without presentment, protest, notice
of protest, notice of non-payment, notice of intention to accelerate the maturity, notice of acceleration of the maturity, or any
other notice whatsoever, pay in lawful money of the United States of America, the amount due on the Guaranteed Obligations to Lender
at Lender's address as set forth herein. Such demand(s) may be made at any time coincident with or after the time for payment of
all or part of the Guaranteed Obligations, and may be made from time to time with respect to the same or different items of Guaranteed
Obligations. Such demand shall be deemed made, given and received in accordance with the notice provisions hereof.

 

1.6           No
Duty To Pursue Others. It shall not be necessary for Lender (and Guarantor hereby knowingly, freely, irrevocably and unconditionally
waives any rights which Guarantor may have to require Lender), in order to enforce the obligations of Guarantor hereunder, first
to (i) institute suit or exhaust its remedies against Borrower or others liable on the Loan or the Guaranteed Obligations or any
other Person, (ii) enforce Lender's rights against any collateral which shall ever have been given to secure the Loan, (iii) enforce
Lender's rights against any other guarantors of the Guaranteed Obligations, (iv) join Borrower or any others liable on the Guaranteed
Obligations in any action seeking to enforce this Guaranty, (v) exhaust any remedies available to Lender against any collateral
which shall ever have been given to secure the Loan, or (vi) resort to any other means of obtaining payment of the Guaranteed Obligations.
Lender shall not be required to mitigate damages or take any other action to reduce, collect or enforce the Guaranteed Obligations.

 

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1.7           Waivers.
Guarantor hereby agrees to the provisions of the Loan Instruments and knowingly, freely, irrevocably and unconditionally waives
notice of (i) any loans or advances made by Lender to Borrower, (ii) acceptance of this Guaranty, (iii) any amendment or extension
of the Note, the Deed of Trust or any other Loan Instruments, (iv) the execution and delivery by Borrower and Lender of any other
loan or credit agreement or of Borrower's execution and delivery of any promissory notes or other documents arising under the Loan
Instruments or in connection with the Secured Property, (v) the occurrence of any breach by Borrower or an Event of Default (as
defined in the Deed of Trust), (vi) Lender's transfer or disposition of the Guaranteed Obligations, or any part thereof, (vii)
sale or foreclosure (or posting or advertising for sale or foreclosure) of any collateral for the Guaranteed Obligations, (viii)
protest, proof of non-payment or default by Borrower, or (ix) any other action at any time taken or omitted by Lender, and, generally,
all demands and notices of every kind in connection with this Guaranty, the Loan Instruments, any documents or agreements evidencing,
securing or relating to any of the Guaranteed Obligations and the obligations hereby guaranteed. In addition, and without limiting
any other waivers or provisions set forth in this Guaranty, Guarantor hereby knowingly, freely, irrevocably and unconditionally
waives and relinquishes all rights, remedies and defenses accorded by applicable law to guarantors and sureties, and agrees not
to assert or to otherwise take advantage of any such rights, remedies or defenses other than the actual payment and performance
of the Guaranteed Obligations. Without limiting the generality of the foregoing or of any other waivers or provisions set forth
in this Guaranty, Guarantor hereby knowingly, freely, irrevocably and unconditionally waives and relinquishes (A) any defense arising
because of an election made by Lender under Federal Bankruptcy Code (“FBC”) Section 1111(b)(2) or based on any borrowing
or grant of a security interest under FBC Section 364, (B) the defense of statute of limitations in any action hereunder or in
any action for the collection of any indebtedness or the performance of any of Borrower’s obligations under the Loan Instruments
and (C) any defense that may arise by reason of the incapacity, lack of authority, death or disability of any other person or persons,
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.

 

1.8           Payment
of Expenses. In the event that Guarantor should breach or fail to timely perform any provisions of this Guaranty, Guarantor
shall, immediately upon demand by Lender, pay Lender all costs and expenses (including, without limitation, court costs and attorneys'
fees and disbursements) incurred by Lender in the enforcement hereof or the preservation of Lender's rights hereunder. Any such
amounts not paid to Lender upon Lender’s demand therefor shall bear interest at the Increased Rate (as such term is defined
in the Note) from the date of such demand until the date such amounts are paid in full by Borrower. The covenants contained in
this Section shall survive the payment and performance of the Guaranteed Obligations.

 

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1.9           Effect
of Bankruptcy. In the event that, pursuant to any insolvency, bankruptcy, reorganization, receivership or other debtor
relief law, or any judgment, order or decision thereunder, Lender must refund or restore any payment, or any part thereof, received
by Lender in satisfaction of the Guaranteed Obligations, as set forth herein, any prior release or discharge from the terms of
this Guaranty given to Guarantor by Lender shall be without effect, and this Guaranty shall remain in full force and effect. It
is the intention of Borrower and Guarantor that Guarantor's obligations hereunder shall not be discharged except by Guarantor's
performance of such obligations and then only to the extent of such performance.

 

1.10         Waiver
of Subrogation, Reimbursement and Contribution. Notwithstanding anything to the contrary contained in this Guaranty, Guarantor
hereby unconditionally and irrevocably waives, releases and abrogates any and all rights it may now or hereafter have under any
agreement, at law or in equity (including, without limitation, any law subrogating the Guarantor to the rights of Lender), to assert
any claim against or seek contribution, indemnification or any other form of reimbursement from Borrower or any other party liable
for payment of any or all of the Guaranteed Obligations for any payment made by Guarantor under or in connection with this Guaranty
or otherwise.

 

1.11         Financial
Reporting. Guarantor will keep and maintain complete and accurate books and records of Guarantor’s earnings and financial
condition and, without expense to Lender, will furnish to Lender, within one hundred twenty (120) days after the end of each fiscal
year and within thirty (30) days after the end of each fiscal quarter of Guarantor, including the fiscal year and fiscal quarter
during which the Loan is closed, annual or quarterly, as applicable, financial statements reflecting Guarantor’s financial
position for such preceding fiscal year and fiscal quarter, as applicable, all prepared and certified by an independent certified
public accountant reasonably satisfactory to Lender, and in accordance with generally accepted accounting principles, consistently
applied, including without limitation: (i) a balance sheet of Guarantor, (ii) a statement of cash flows of Guarantor and (iii)
a profit and loss statement of Guarantor. Notwithstanding the foregoing, if the Loan is not then in default, the quarterly financial
statements may be prepared and certified by any officer or other authorized party of Guarantor.

 

1.12         Borrower.
The term "Borrower" as used herein shall include any new or successor corporation, association, partnership (general
or limited), limited liability company, joint venture, trust or other individual or organization formed as a result of any merger,
reorganization, sale, transfer, devise, gift or bequest of Borrower or any interest in Borrower. Nothing set forth herein, however,
shall constitute a consent by Lender to any merger, reorganization, sale, transfer, devise, gift, or bequest of Borrower or any
interest in Borrower, nor shall anything set forth herein diminish or affect in any manner whatsoever any of the obligations or
liabilities of Borrower under the Loan Instruments.

 

1.13         Recourse Limitations
Do Not Apply. It is understood and agreed that the limitations of liability provided in the Note and any other Loan Instruments
shall not apply with respect to the Guarantor as to the Guaranteed Obligations and that, notwithstanding anything to the contrary
in the Note or any other Loan Instrument, Lender shall have full and personal recourse against the assets of the Guarantor as to
the Guaranteed Obligations and such limitations shall not apply for purposes of enforcing this Guaranty.

 

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1.14         Guarantor’s
Claims Against Borrower. Guarantor shall file in any bankruptcy or other proceeding in which the filing of claims is required
by law all claims which Guarantor may have against Borrower relating to any indebtedness of Borrower to Guarantor and will assign
to Lender all rights of Guarantor thereunder. If Guarantor does not file any such claim, Lender, as attorney-in-fact for Guarantor,
is hereby authorized to do so in the name of Guarantor or, in Lender’s discretion, to assign the claim to a nominee and to
cause proof of claim to be filed in the name of Lender’s nominee. The foregoing power of attorney is coupled with an interest
and cannot be revoked. Lender or its nominee shall have the sole right to accept or reject any plan proposed in such proceeding
and to take any other action which a party filing a claim is entitled to do. In all such cases, whether in administration, bankruptcy
or otherwise, the person or persons authorized to pay such claim shall pay to Lender the amount payable on such claim and, to the
full extent necessary for that purpose, Guarantor hereby assigns to Lender all of Guarantor’s rights to any such payments
or distributions to which Guarantor would otherwise be entitled to the extent of the Guaranteed Obligations; provided, however,
that Guarantor’s obligations hereunder shall not be satisfied except to the extent that Lender receives cash by reason of
any such payment or distribution. If Lender receives anything hereunder other than cash, the same shall be held as collateral for
amounts due under this Guaranty.

 

1.15        Financial
Covenants. Guarantor hereby covenants and agrees that, after giving effect to this Guaranty and the obligations of Guarantor
(contingent or otherwise) evidenced by this Guaranty and the other Loan Instruments, Guarantor (a) will maintain property and assets
which, when fairly valued, exceed Guarantor’s obligations, liabilities (including contingent liabilities) and debts, and
(b) will have property and assets sufficient to satisfy and repay such obligations, liabilities and debts, each of (a) and (b)
as reasonably determined by Lender.

 

ARTICLE II

 

EVENTS AND CIRCUMSTANCES NOT REDUCING

OR DISCHARGING GUARANTOR'S OBLIGATIONS

 

Guarantor hereby consents
and agrees to each of the following, and agrees that Guarantor's obligations under this Guaranty shall not be released, diminished,
impaired, reduced or adversely affected by any of the following, and waives any common law, equitable, statutory or other rights
(including without limitation rights to notice or to be released, in whole or in part) which Guarantor might otherwise have as
a result of or in connection with any of the following:

 

2.1           Modifications.
Any renewal, extension, increase, modification, alteration or rearrangement of all or any part of the Guaranteed Obligations, the
Note, the Deed of Trust, the other Loan Instruments, or any other document, instrument, contract or understanding between Borrower
and Lender, or any other parties, pertaining to the Guaranteed Obligations or any failure of Lender to notify Guarantor of any
such action.

 

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2.2           Adjustment.
Any adjustment, indulgence, forbearance or compromise that might be granted or given by Lender to Borrower or any Guarantor.

 

2.3           Condition
of Borrower or Guarantor. The insolvency, bankruptcy, arrangement, adjustment, composition, liquidation, disability, dissolution
or lack of power of Borrower, Guarantor or any other party at any time liable for the payment of all or part of the Guaranteed
Obligations; or any dissolution of Borrower or Guarantor, or any sale, lease or transfer of any or all of the assets of Borrower
or Guarantor, or any changes in the shareholders, partners or members of Borrower or Guarantor; or any reorganization of Borrower
or Guarantor.

 

2.4           Invalidity
of Guaranteed Obligations. The invalidity, illegality or unenforceability of all or any part of the Guaranteed Obligations,
or any document or agreement executed in connection with the Guaranteed Obligations, for any reason whatsoever, including without
limitation the fact that (i) the Guaranteed Obligations, or any part thereof, exceeds the amount permitted by law, (ii) the act
of creating the Guaranteed Obligations or any part thereof is ultra vires, (iii) the officers or representatives
executing the Note, the Deed of Trust or the other Loan Instruments or otherwise creating the Guaranteed Obligations acted in excess
of their authority, (iv) the Guaranteed Obligations violate applicable usury laws, (v) the Borrower has valid defenses, claims
or offsets (whether at law, in equity or by agreement) which render the Guaranteed Obligations wholly or partially uncollectible
from Borrower, (vi) the creation, performance or repayment of the Guaranteed Obligations (or the execution, delivery and performance
of any document or instrument representing part of the Guaranteed Obligations or executed in connection with the Guaranteed Obligations,
or given to secure the repayment of the Guaranteed Obligations) is illegal, uncollectible or unenforceable, or (vii) the Note,
the Deed of Trust or any of the other Loan Instruments have been forged or otherwise are irregular or not genuine or authentic,
it being agreed that Guarantor shall remain liable hereon regardless of whether Borrower or any other Person be found not liable
on the Guaranteed Obligations or any part thereof for any reason.

 

2.5           Release
of Obligors. Any full or partial release of the liability of Borrower on the Guaranteed Obligations, or any part thereof,
or of any co-guarantors, or any other Person or entity now or hereafter liable, whether directly or indirectly, jointly, severally,
or jointly and severally, to pay, perform, guarantee or assure the payment of the Guaranteed Obligations, or any part thereof,
it being recognized, acknowledged and agreed by Guarantor that Guarantor may be required to pay the Guaranteed Obligations in full
without assistance or support of any other party, and Guarantor has not been induced to enter into this Guaranty on the basis of
a contemplation, belief, understanding or agreement that other parties will be liable to pay or perform the Guaranteed Obligations,
or that Lender will look to other parties to pay or perform the Guaranteed Obligations.

 

2.6           Other
Collateral. The taking or accepting of any other security, collateral or guaranty, or other assurance of payment, for all
or any part of the Guaranteed Obligations.

 

2.7           Release
of Collateral. Any release, surrender, exchange, subordination, deterioration, waste, loss or impairment (including without
limitation negligent, willful, unreasonable or unjustifiable impairment) of any collateral, property or security at any time existing
in connection with, or assuring or securing payment of, all or any part of the Guaranteed Obligations and any application of any
collateral, property or security to the Guaranteed Obligations in any order or manner as Lender may determine in its discretion.

 

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2.8           Care
and Diligence. The failure of Lender or any other party to exercise diligence or reasonable care in the preservation, protection,
enforcement, sale or other handling or treatment of all or any part of such collateral, property or security, including but not
limited to any neglect, delay, omission, failure or refusal of Lender (i) to take or prosecute any action for the collection of
any of the Guaranteed Obligations or (ii) to foreclose, or initiate any action to foreclose, or, once commenced, prosecute to completion
any action to foreclose upon any security therefor, or (iii) to take or prosecute any action in connection with any instrument
or agreement evidencing or securing all or any part of the Guaranteed Obligations.

 

2.9           Unenforceability.
The fact that any collateral, security, security interest or lien contemplated or intended to be given, created or granted as security
for the repayment of the Guaranteed Obligations, or any part thereof, shall not be properly perfected or created, or shall prove
to be unenforceable or subordinate to any other security interest or lien, it being recognized and agreed by Guarantor that Guarantor
is not entering into this Guaranty in reliance on, or in contemplation of the benefits of, the validity, enforceability, collectibility
or value of any of the collateral for the Guaranteed Obligations.

 

2.10         Offset.
The Note, the Guaranteed Obligations and the liabilities and obligations of the Guarantor to Lender hereunder shall not be
reduced, discharged or released because of or by reason of any existing or future right of offset, claim or defense of Borrower,
or any other party, against Lender, or any other party, or against payment of the Guaranteed Obligations, whether such right of
offset, claim or defense arises in connection with the Guaranteed Obligations (or the transactions creating the Guaranteed Obligations)
or otherwise.

 

2.11         Merger.
The reorganization, merger or consolidation of Borrower into or with any other corporation or entity.

 

2.12         Preference.
Any payment by Borrower to Lender is held to constitute a preference under bankruptcy laws, or for any reason Lender is required
to refund such payment or pay such amount to Borrower or someone else.

 

2.13         Other
Actions Taken or Omitted. Any other action taken or omitted to be taken with respect to the Loan Instruments, the Guaranteed
Obligations, or the security and collateral therefor, whether or not such action or omission prejudices Guarantor or increases
the likelihood that Guarantor will be required to pay the Guaranteed Obligations pursuant to the terms hereof, it is the unambiguous
and unequivocal intention of Guarantor that Guarantor shall be obligated to pay the Guaranteed Obligations when due, notwithstanding
any occurrence, circumstance, event, action, or omission whatsoever, whether contemplated or uncontemplated, and whether or not
otherwise or particularly described herein, which obligation shall be deemed satisfied only upon the full and final payment and
satisfaction of the Guaranteed Obligations.

 

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2.14         
Other Waivers. In addition to all the other waivers agreed to and made by Guarantor as set forth in this Guaranty,
by executing this Guaranty, Guarantor freely, irrevocably and unconditionally waives all rights and defenses that the Guarantor
may have because Borrower’s debt to Lender is secured by real property. This means, among other things: (a) Lender may collect
from Guarantor without first foreclosing on any real or personal property collateral pledges by Borrower; and (b) if Lender forecloses
on any real property collateral pledged by Borrower, 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 Lender may collect from Guarantor
even if Lender, by foreclosing on the real property collateral, has destroyed any right Guarantor may have to collect from Borrower.
This is an unconditional and irrevocable waiver of any rights and defenses that Guarantor may have because Borrower’s debt
is secured by real property.  The Guarantor expressly waives: (i) any right to be discharged or released
in whole or in part by reason of any sale or assignment by Borrower of the collateral, or any portion thereof, whether or not consented
to by Lender and whether or not Lender has any dealings with the transferee; and (ii) any rights of the Guarantor pursuant to Chapter
26 of the North Carolina General Statutes including North Carolina General Statute §26-7 or any similar or subsequent law.
The Guarantor further expressly waives any right or option to be discharged or released in whole or in part by reason of any of
the matters described in (i) the foregoing provisions of this paragraph, or (ii) Article II or Sections 1.6 or 1.7 of this Guaranty.

 

ARTICLE III

 

REPRESENTATIONS
AND WARRANTIES

 

To induce Lender to enter
into the Loan Instruments and extend credit to Borrower, Guarantor represents, warrants and covenants to Lender as follows:

 

3.1           Benefit.
Guarantor is the owner of direct or indirect interests in Borrower, and has received, or will receive, direct or indirect benefit
from the making of this Guaranty with respect to the Guaranteed Obligations.

 

3.2           Familiarity
and Reliance. Guarantor is familiar with, and has independently reviewed books and records regarding the financial condition
of the Borrower and is familiar with the value of any and all collateral intended to be created as security for the payment of
the Note or Guaranteed Obligations; however, Guarantor is not relying on such financial condition or the collateral as an inducement
to enter into this Guaranty.

 

3.3           No
Representation By Lender. Neither Lender nor any other party has made any representation, warranty or statement to Guarantor
in order to induce the Guarantor to execute this Guaranty.

 

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3.4           Guarantor's
Financial Condition. The most recent financial statement of Guarantor heretofore delivered to Lender are true and correct
in all material respects, have been prepared and certified by an independent certified public accountant in accordance with generally
accepted accounting principles and fairly present the financial condition of Guarantor as of the date thereof. No material adverse
change has occurred in Guarantor’s financial condition since the date of such financial statements. As of the date hereof,
and after giving effect to this Guaranty and the contingent obligation evidenced hereby, Guarantor is, and will be, solvent, and
has and will have assets which, fairly valued, exceed Guarantor’s obligations, liabilities (including contingent liabilities)
and debts, and has and will have property and assets sufficient to satisfy and repay Guarantor’s obligations and liabilities.
In addition, (a) the Guaranteed Obligations incurred by Guarantor in connection with the Loan (and any other obligations incurred
by Guarantor in connection with the Loan) are not made or incurred with the intent to hinder, delay, or defraud any present or
future creditor of Guarantor; (b) Guarantor has not received less than reasonably equivalent value in exchange for incurring
the Guaranteed Obligations in connection with the Loan (and any other obligations incurred by Guarantor in connection with the
Loan); (c) Guarantor is solvent as of the date hereof, and Guarantor will not become insolvent as a result of incurring the Guaranteed
Obligations in connection with the Loan (and any other obligations incurred by Guarantor in connection with the Loan); (d) Guarantor
is not engaged, and Guarantor is not about to engage, in business or a transaction for which any property remaining with Guarantor
is an unreasonably small capital; (e) Guarantor has not and does not intend to incur, and Guarantor does not believe that
it will incur, debts that would be beyond Guarantor’s ability to pay as such debts mature; and (f) Guarantor is not incurring
such Guaranteed Obligations (or any other obligations incurred by Guarantor in connection with the Loan) to or for the benefit
of an insider (as defined in 11 U.S.C. § 101(31)), under an employment contract and other than in the ordinary course of business.

 

3.5           Legality.
The execution, delivery and performance by Guarantor of this Guaranty and the consummation of the transactions contemplated hereunder
do not, and will not, contravene or conflict with any law, statute or regulation whatsoever to which Guarantor is subject or constitute
a default (or an event which with notice or lapse of time or both would constitute a default) under, or result in the breach of,
any indenture, mortgage, charge, lien, or any contract, agreement or other instrument to which Guarantor is a party or which may
be applicable to Guarantor. This Guaranty is a legal and binding obligation of Guarantor and is enforceable in accordance with
its terms, except as limited by bankruptcy, insolvency or other laws of general application relating to the enforcement of creditors'
rights.

 

3.6           Survival.
All representations and warranties made by Guarantor herein shall survive the execution hereof.

 

3.7           Review
of Documents. Guarantor has examined the Note and all of the Loan Instruments.

 

3.8           Litigation.
There are no proceedings pending or, so far as Guarantor knows, threatened before any court or administrative agency which would
affect the authority of Guarantor to enter into, or the validity or enforceability of this Guaranty or which if decided adversely
to Guarantor would materially adversely affect the financial condition of Guarantor.

 

3.9           Tax
Returns. Guarantor has filed or will file on a timely basis all required federal, state and local tax returns and has paid
all taxes as shown on such returns as they have become due. No claims have been assessed and are unpaid with respect to such taxes.

 

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3.10         Blocked
Person. Guarantor is and shall remain in compliance with the requirements of Executive Order 13224 of September 23, 2001
“Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism”
(66 Fed. Reg. 49079 (2001)) (the “Order”) and other similar requirements contained in the rules and regulations of
the Office of Foreign Assets Control, Department of the Treasury (“OFAC”) and in any enabling legislation or other
executive orders or regulations in respect thereof (the Order and such other rules regulations, legislation or orders are referred
to hereinafter, collectively, as the “Orders”). Without limiting the generality of the foregoing, neither Guarantor,
nor any subsidiary or affiliate of Guarantor, nor any member, partner or shareholder or other beneficial owner of Guarantor or
of any such subsidiary, affiliate, member, partner, shareholder or other beneficial owner (i) is listed on the Specially Designated
Nationals and Blocked Persons List maintained by OFAC pursuant to the Order and/or on any other list of terrorists or terrorist
organizations maintained pursuant to any of the rules and regulations of OFAC or pursuant to any other applicable Orders, (ii)
is or will become a “blocked person” described in Section 1 of the Order or (iii) knowingly engages or will engage
in any dealings or transactions, or is or will be otherwise associated, with any such blocked person. Guarantor shall promptly
notify Lender should Guarantor become aware of any information which would render untrue any of the representations, warranties
or covenants set forth in this Section 3.10.

 

ARTICLE IV

 

SUBORDINATION OF CERTAIN INDEBTEDNESS

 

4.1           Subordination
of All Guarantor Claims. As used herein, the term "Guarantor Claims" shall mean all debts and liabilities of
Borrower to Guarantor, whether such debts and liabilities now exist or are hereafter incurred or arise, or whether the obligations
of Borrower thereon be direct, contingent, primary, secondary, several, joint and several, or otherwise, and irrespective of whether
such debts or liabilities be evidenced by note, contract, open account, or otherwise, and irrespective of the Person or Persons
in whose favor such debts or liabilities may, at their inception, have been, or may hereafter be created, or the manner in which
they have been or may hereafter be acquired by Guarantor. The Guarantor Claims shall include without limitation all rights and
claims of Guarantor against Borrower (arising as a result of subrogation or otherwise) as a result of Guarantor’s payment
of all or a portion of the Guaranteed Obligations. Upon the occurrence of an Event of Default or the occurrence of an event which
would, with the giving of notice or the passage of time, or both, constitute an Event of Default, Guarantor shall not receive or
collect, directly or indirectly, from Borrower or any other party any amount upon the Guarantor Claims unless and until Lender
accepts in writing, in Lender’s sole discretion, a cure of such Event of Default.

 

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4.2           Claims
in Bankruptcy. In the event of receivership, bankruptcy, reorganization, arrangement, debtor's relief, or other insolvency
proceedings involving Guarantor as debtor, Lender shall have the right to prove its claim in any such proceeding so as to establish
its rights hereunder and receive directly from the receiver, trustee or other court custodian dividends and payments which would
otherwise be payable upon Guarantor Claims. Guarantor hereby assigns such dividends and payments to Lender. Should Lender receive,
for application upon the Guaranteed Obligations, any such dividend or payment which is otherwise payable to Guarantor, and which,
as between Borrower and Guarantor, shall constitute a credit upon the Guarantor Claims, then upon payment to Lender in full of
the Guaranteed Obligations, Guarantor shall become subrogated to the rights of Lender to the extent that such payments to Lender
on the Guarantor Claims have contributed toward the liquidation of the Guaranteed Obligations, and such subrogation
shall be with respect to that proportion of the Guaranteed Obligations which would have been unpaid if Lender had not received
dividends or payments upon the Guarantor Claims.

 

4.3           Payments
Held in Trust. In the event that, notwithstanding anything to the contrary in this Guaranty, Guarantor should receive any
funds, payment, claim or distribution which is prohibited by this Guaranty, Guarantor agrees to hold in trust for Lender an amount
equal to the amount of all funds, payments, claims or distributions so received, and agrees that it shall have absolutely no dominion
over the amount of such funds, payments, claims or distributions so received except to pay them promptly to Lender, and Guarantor
covenants promptly to pay the same to Lender.

 

4.4           Liens
Subordinate. Guarantor agrees that any liens, security interests, judgment liens, charges or other encumbrances upon Borrower's
assets securing payment of the Guarantor Claims shall be and remain inferior and subordinate to any liens, security interests,
judgment liens, charges or other encumbrances upon Borrower's assets securing payment of the Guaranteed Obligations, regardless
of whether such encumbrances in favor of Guarantor or Lender presently exist or are hereafter created or attach. Without the prior
written consent of Lender, Guarantor shall not (i) exercise or enforce any creditor's right it may have against Borrower, or (ii)
foreclose, repossess, sequester or otherwise take steps or institute any action or proceedings (judicial or otherwise, including
without limitation the commencement of, or joinder in, any liquidation, bankruptcy, rearrangement, debtor's relief or insolvency
proceeding) to enforce any liens, mortgages, deeds of trust, security interests, collateral rights, judgments or other encumbrances
on assets of Borrower held by Guarantor except and until and to the extent the Guaranteed Obligations are paid in full. Nothing
set forth in this Section 4.4 is intended or shall be construed as the permitting of or the granting by Lender of its consent to
the creation or existence of any liens, security interests, judgment liens, charges or other encumbrances upon Borrower's assets
or the Secured Property.

 

ARTICLE V

 

MISCELLANEOUS

 

5.1           Waiver.
No failure to exercise, and no delay in exercising, on the part of Lender, any right hereunder shall operate as a waiver thereof,
nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right.
The rights of Lender hereunder shall be in addition to all other rights provided by law. No modification or waiver of any provision
of this Guaranty, nor consent to departure therefrom, shall be effective unless in writing and no such consent or waiver shall
extend beyond the particular case and purpose involved. No notice or demand given in any case shall constitute a waiver of the
right to take other action in the same, similar or other instances without such notice or demand.

 

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5.2           Notices.
All notices and demands or other communications hereunder shall be in writing, and shall be deemed to have been sufficiently given
or served for all purposes when presented personally or sent by generally recognized overnight delivery service, with postage prepaid,
addressed to Guarantor or Lender, as applicable, at the address stated below, or at such other address of which either Guarantor
or Lender may hereafter notify the other in writing:

 

Guarantor:

 

Trade Street Operating
Partnership, LP

Trade Street Residential,
Inc.

19950 West Country Club
Drive, Suite 800

Aventura,
Florida 33180

Attn: Richard Ross

 

with a copy to:

 

Greenspoon Marder

100 W. Cypress
Creek Road, Suite 700

Fort Lauderdale,
FL 33309

Attn: Barry Somerstein,
Esq.

 

Lender:

 

NEW YORK LIFE INSURANCE
COMPANY

c/o New York Life Investment
Management LLC

51 Madison Avenue

New York, New York 10010-1603

Attn:      Real Estate
Group

Director - Loan Administration
Division

Loan No. : 374-0551

 

with a copy to:

 

NEW YORK LIFE INSURANCE
COMPANY

Office of the General
Counsel

51 Madison Avenue

New York, New York 10010-1603

Attn:Managing Director
- Real Estate Section

Loan No. 374-0551

 

Each notice or demand so given or served
shall be deemed given and effective (a) if personally delivered, on the day of actual delivery or refusal and (b) if sent by generally
recognized overnight delivery service, on the next business day. Notwithstanding the foregoing, service of any notice of default
provided or required by law shall, if mailed as required by law, be deemed given and effective on the date of mailing.

 

    	Loan No. 374-0551
WCSR 31793071
	12	 

    	 

    

 

5.3           Governing
Law. This Guaranty shall be governed by and construed in accordance with the laws of the State in which the real property
encumbered by the Deed of Trust is located and the applicable laws of the United States of America and, in connection with any
action or proceeding arising out of or relating to this Guaranty, Guarantor hereby submits to the jurisdiction of any court of
competent jurisdiction located in such State.

 

5.4           Invalid
Provisions. If any provision of this Guaranty is held to be illegal, invalid, or unenforceable under present or future
laws effective during the term of this Guaranty, such provision shall be fully severable and this Guaranty shall be construed and
enforced as if such illegal, invalid or unenforceable provision had never comprised a part of this Guaranty, and the remaining
provisions of this Guaranty shall remain in full force and effect and shall not be affected by the illegal, invalid or unenforceable
provision or by its severance from this Guaranty, unless such continued effectiveness of this Guaranty, as modified, would be contrary
to the basic understandings and intentions of the parties as expressed herein.

 

5.5           Amendments.
This Guaranty may be amended only by an instrument in writing executed by the party or an authorized representative of the party
against whom such amendment is sought to be enforced.

 

5.6           Parties
Bound; Assignment; Joint and Several. This Guaranty shall be binding upon and inure to the benefit of the parties hereto
and their respective successors, assigns and legal representatives; provided, however, that Guarantor may not, without the prior
written consent of Lender, assign any of Guarantor’s rights, powers, duties or obligations hereunder. If Guarantor consists
of more than one Person, the obligations and liabilities of each such Person shall be joint and several.

 

5.7           Headings.
Section headings are for convenience of reference only and shall in no way affect the interpretation of this Guaranty.

 

5.8           Recitals.
The recital and introductory paragraphs hereof are a part hereof, form a basis for this Guaranty and shall be considered prima
facie evidence of the facts and documents referred to therein.

 

5.9           Counterparts.
To facilitate execution, this Guaranty may be executed in as many counterparts as may be convenient or required. It shall not be
necessary that the signature of, or on behalf of, each party, or that the signature of all Persons required to bind any party,
appear on each counterpart. All counterparts shall collectively constitute a single instrument. It shall not be necessary in making
proof of this Guaranty to produce or account for more than a single counterpart containing the respective signatures of, or on
behalf of, each of the parties hereto. Any signature page to any counterpart may be detached from such counterpart without impairing
the legal effect of the signatures thereon and thereafter attached to another counterpart identical thereto except having attached
to it additional signature pages.

 

    	Loan No. 374-0551
WCSR 31793071
	13	 

    	 

    

 

5.10         Rights
and Remedies. If Guarantor becomes liable for any indebtedness owing by Borrower to Lender, by endorsement or otherwise,
other than under this Guaranty, such liability shall not be in any manner impaired or affected hereby and the rights of Lender
hereunder shall be cumulative of any and all other rights that Lender may ever have against Guarantor. The exercise by Lender of
any right or remedy hereunder or under any other instrument, or at law or in equity, shall not preclude the concurrent or subsequent
exercise of any other right or remedy.

 

5.11         Other
Defined Terms. Any capitalized term utilized herein shall have the meaning as specified in the Deed of Trust, unless such
term is otherwise specifically defined herein.

 

5.12         Entirety.
THIS GUARANTY EMBODIES THE FINAL, ENTIRE AGREEMENT OF GUARANTOR AND LENDER WITH RESPECT TO GUARANTOR'S GUARANTY OF THE GUARANTEED
OBLIGATIONS AND SUPERSEDES ANY AND ALL PRIOR COMMITMENTS, AGREEMENTS, REPRESENTATIONS, AND UNDERSTANDINGS, WHETHER WRITTEN OR ORAL,
RELATING TO THE SUBJECT MATTER HEREOF. THIS GUARANTY IS INTENDED BY GUARANTOR AND LENDER AS A FINAL AND COMPLETE EXPRESSION OF
THE TERMS OF THIS GUARANTY, AND NO COURSE OF DEALING BETWEEN GUARANTOR AND LENDER, NO COURSE OF PERFORMANCE, NO TRADE PRACTICES,
AND NO EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OR DISCUSSIONS OR OTHER EXTRINSIC EVIDENCE OF ANY NATURE
SHALL BE USED TO CONTRADICT, VARY, SUPPLEMENT OR MODIFY ANY TERM OF THIS GUARANTY AGREEMENT. THERE ARE NO ORAL AGREEMENTS BETWEEN
GUARANTOR AND LENDER.

 

5.13         Waiver
of Right To Trial By Jury. GUARANTOR HEREBY AGREES NOT TO ELECT A TRIAL BY JURY OF ANY ISSUE TRIABLE OF RIGHT BY JURY,
AND, TO THE EXTENT NOT PROHIBITED BY LAW, WAIVES ANY RIGHT TO TRIAL BY JURY FULLY TO THE EXTENT THAT ANY SUCH RIGHT SHALL NOW OR
HEREAFTER EXIST WITH REGARD TO THIS GUARANTY, THE NOTE, THE DEED OF TRUST, OR THE OTHER LOAN INSTRUMENTS, OR ANY CLAIM, COUNTERCLAIM
OR OTHER ACTION ARISING IN CONNECTION THEREWITH. THIS WAIVER OF RIGHT TO TRIAL BY JURY IS GIVEN KNOWINGLY AND VOLUNTARILY BY GUARANTOR,
AND IS INTENDED TO ENCOMPASS INDIVIDUALLY EACH INSTANCE AND EACH ISSUE AS TO WHICH THE RIGHT TO A TRIAL BY JURY WOULD OTHERWISE
ACCRUE. LENDER IS HEREBY AUTHORIZED TO FILE A COPY OF THIS PARAGRAPH IN ANY PROCEEDING AS CONCLUSIVE EVIDENCE OF THIS WAIVER BY
GUARANTOR.

 

[Signature Page Follows]

 

    	Loan No. 374-0551
WCSR 31793071
	14	 

    	 

    

 

[Signature Page –
Guaranty]

  

EXECUTED as of the day
and year first above written.

 

	 	GUARANTOR:	 
	 	 	 
	 	TRADE STREET OPERATING PARTNERSHIP, LP, 	 
	 	a Delaware limited partnership (SEAL)	 
	 	 	 	 	 	 
	 	By:  	Trade Street OP GP, LLC, a Delaware limited	 
	 	 	liability company, its general partner (SEAL)	 
	 	 	 	 	 
	 	 	By:  	Trade Street Residential, Inc., a Maryland	 
	 	 	 	corporation, its sole member (SEAL)	 
	 	 	 	 	 	 
	 	 	 	By:	/s/ Richard Ross	(SEAL)
	 	 	 	Name:  	Richard Ross	 
	 	 	 	Title:	Chief Financial Officer	 

 

Miami Dade County, State of Florida

 

I certify that the
following person(s) personally appeared before me this day, each acknowledging to me that he or she signed the foregoing document:

Richard Ross

name(s) of principal(s)          

 

	Date:  January 14, 2014	 	/s/ Rachael Peters
	 	 	(official signature of Notary)
	 	 	Rachael Peters, Notary Public
	 	 	(Notary's printed or typed name)
	 	 	 
	(Official Seal)	 	My commission expires: August 2, 2014
	 	 	Commission # EE 013802

  

    	Loan No. 374-0551
WCSR 31793071
	 	 

    	 

    

 

[Signature Page –
Guaranty]

 

	 	TRADE STREET RESIDENTIAL, INC., 	 
	 	a Maryland corporation  (SEAL)	 
	 	 	 	 
	 	By:	/s/ Richard Ross       (SEAL)	 
	 	Name:	Richard Ross	 
	 	Title:	Chief Financial Officer	 

 

Miami Dade County, State of Florida

 

I certify that the
following person(s) personally appeared before me this day, each acknowledging to me that he or she signed the foregoing document:

Richard Ross

name(s) of principal(s)          

 

	Date: January 14, 2014	/s/ Rachael Peters	 
	 	(official signature of Notary)	 
	 	Rachael Peters, Notary Public	 
	 	(Notary's printed or typed name)	 
	 	 	 
	(Official Seal)	My commission expires: August 2, 2014	 
	 	Commission # EE 013802	 

 

 

    	Loan No. 374-0551
WCSR 31793071

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