Plantation Gardens - CONSOLIDATED CAPITAL INSTITUTIONAL PROPERTIES - 2-23-2004 by XXLOD-Agreements

VIEWS: 14 PAGES: 337

									              PLANTATION GARDENS
                7616 NW 5TH STREET
               PLANTATION, FLORIDA

                MARKET VALUE -
               FEE SIMPLE ESTATE

             AS OF DECEMBER 11, 2003

                 PREPARED FOR:

APARTMENT INVESTMENT AND MANAGEMENT COMPANY
                   (AIMCO)

C/O LINER YANKELEVITZ SUNSHINE & REGENSTREIF LLP

                       &

      LIEFF CABRASER HEIMANN & BERNSTEIN
           ON BEHALF OF NUANES, ET. AL.

    [AMERICAN APPRAISAL ASSOCIATES(R) LOGO]
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Los Angeles




                                              DECEMBER 23, 2003

Apartment Investment and Management
Company ("AIMCO") c/o
Mr. Steven A. Velkei, Esq.
Liner Yankelevitz Sunshine & Regenstreif LLP 1100 Glendon Avenue, 14th Floor
Los Angeles, California 90024-3503

Nuanes, et al.( "Plaintiffs ") c/o
Ms. Joy Kruse
Lieff Cabraser Heimann & Bernstein
Embarcadero Center West
275 Battery Street, 30th Floor
San Francisco, California 94111

RE: PLANTATION GARDENS
7616 NW 5TH STREET
PLANTATION, BROWARD COUNTY, FLORIDA

In accordance with your authorization, we have completed the appraisal of the above-referenced property. This
complete appraisal is intended to report our analysis and conclusions in a summary format.

The subject property consists of an apartment project having 372 units with a total of 326,800 square feet of
rentable area. The improvements were built in 1971. The improvements are situated on 20.83 acres. Overall, the
improvements are in average condition. As of the date of this appraisal, the subject property is 97% occupied.

It is our understanding the appraisal will be used by the clients to assist the San Mateo Superior Court in the
settlement of litigation between the above mentioned clients. The appraisal is intended to conform to the Uniform
Standards of Professional Appraisal Practice ("USPAP") as promulgated by the Appraisal Standards Board of
the Appraisal Foundation and the Code of Professional Ethics and Standards of Professional Practice of the
Appraisal Institute. The appraisal is presented in a summary report, and the Departure Provision of USPAP has
not been invoked in this appraisal. It is entirely inappropriate to use this value conclusion or the report for any
purpose other than the one stated.
AMERICAN APPRAISAL ASSOCIATES, INC. LETTER OF TRANSMITTAL PAGE 2
PLANTATION GARDENS, PLANTATION, FLORIDA

The opinions expressed in this appraisal cover letter can only be completely understood by reading the narrative
report, addenda, and other data, which is attached. The appraisal is subject to the attached general assumptions
and limiting conditions and general service conditions.

As a result of our investigation, it is our opinion that the fee simple market value of the subject, effective
December 11, 2003 is:

                                                    ($19,000,000)

                                        Respectfully submitted,
                               AMERICAN APPRAISAL ASSOCIATES, INC.

                                         -s- Edward Zenkovich
                                         ----------------------------
           December 23, 2003             Edward Zenkovich, ASA
           #053272                       Managing Principal, Real Estate Group
                                         State of Florida, Certified General Appraiser, #0001259

           Assisted By:
           Kim Cook
AMERICAN APPRAISAL ASSOCIATES, INC. TABLE OF CONTENTS PAGE 3
PLANTATION GARDENS, PLANTATION, FLORIDA

                                        TABLE OF CONTENTS

Cover
Letter of Transmittal
Table of Contents

                                             APPRAISAL DATA

               Executive Summary ...............................................          4
               Introduction ....................................................          9
               Area Analysis ...................................................         11
               Market Analysis .................................................         14
               Site Analysis ...................................................         15
               Improvement Analysis ............................................         15
               Highest and Best Use ............................................         16

                                               VALUATION

               Valuation Procedure .............................................         17
               Sales Comparison Approach .......................................         19
               Income Capitalization Approach ..................................         25
               Reconciliation and Conclusion ...................................         36




                                              ADDENDA

Exhibit A - Photographs of Subject Property Exhibit B - Summary of Rent Comparables and Photograph of
Comparables Exhibit C - Assumptions and Limiting Conditions Exhibit D - Certificate of Appraiser
Exhibit E - Qualifications
General Service Conditions
AMERICAN APPRAISAL ASSOCIATES, INC. EXECUTIVE SUMMARY PAGE 4
PLANTATION GARDENS, PLANTATION, FLORIDA

                                 EXECUTIVE SUMMARY

                          PART ONE - PROPERTY DESCRIPTION

        PROPERTY NAME:                Plantation Gardens
        LOCATION:                     7616 NW 5th Street
                                      Plantation, Florida

        INTENDED USE OF ASSIGNMENT:   Court Settlement
        PURPOSE OF APPRAISAL:         "As Is" Market Value of the Fee Simple Estate
        INTEREST APPRAISED:           Fee Simple

        DATE OF VALUE:                December 11, 2003
        DATE OF REPORT:               December 23, 2003




PHYSICAL DESCRIPTION - SITE & IMPROVEMENTS:
SITE:

          Size:                       20.83 acres, or 907,355 square feet
          Assessor Parcel No.:        5041-04-06-0010
          Floodplain:                 Community Panel No. 120054 0215F (August 18,
                                      1992)
                                      Flood Zone X, an area outside the floodplain.
          Zoning:                     PRD - 17Q (Planned Residential Development
                                      Multifamily - Density 17 units/acre)

        BUILDING:

          No. of Units:               372 Units
          Total NRA:                  326,800 Square Feet
          Average Unit Size:          878 Square Feet
          Apartment Density:          17.9 units per acre
          Year Built:                 1971




UNIT MIX AND MARKET RENT:

                          GROSS RENTAL INCOME PROJECTION

                                          Market Rent
                             Square ---------------------     Monthly       Annual
          Unit Type           Feet    Per Unit     Per SF      Income       Income
       -----------------------------------------------------------------------------
       1Bdrm/1Ba-1A10          750   $      750   $   1.00   $   31,500   $ 378,000
       2Bdrm/2Ba-2A20          850   $      800   $   0.94   $ 145,600    $1,747,200
       2Bdrm/2Ba-2B20          950   $      850   $   0.89   $ 125,800    $1,509,600
                                                             ----------   ----------
                                                     Total   $ 302,900    $3,634,800
                                                             ==========   ==========



                           OCCUPANCY:                     97%
                           ECONOMIC LIFE:                 45 Years
                           EFFECTIVE AGE:                 20 Years
                           REMAINING ECONOMIC LIFE:       25 Years
    AMERICAN APPRAISAL ASSOCIATES, INC.                EXECUTIVE SUMMARY   PAGE 5
    PLANTATION GARDENS, PLANTATION, FLORIDA

    SUBJECT PHOTOGRAPHS AND LOCATION MAP:

                                 SUBJECT PHOTOGRAPHS

                  [PICTURE]                            [PICTURE]




EXTERIOR - APARTMENT ENTRANCE EXTERIOR - 4-STORY APARTMENT BUILDING

                                     AREA MAP

                                        [MAP]
AMERICAN APPRAISAL ASSOCIATES, INC.                  EXECUTIVE SUMMARY   PAGE 6
PLANTATION GARDENS, PLANTATION, FLORIDA

                               NEIGHBORHOOD MAP

HIGHEST AND BEST USE:
     As Vacant:              Hold for future multi-family development
     As Improved:            Continuation as its current use

METHOD OF VALUATION:         In this instance, the Sales Comparison and Income
                             Approaches to value were utilized.
AMERICAN APPRAISAL ASSOCIATES, INC. EXECUTIVE SUMMARY PAGE 7
PLANTATION GARDENS, PLANTATION, FLORIDA

                                PART TWO - ECONOMIC INDICATORS

INCOME CAPITALIZATION APPROACH

DIRECT CAPITALIZATION                                                       Amount                   $/Unit
---------------------                                                       ------                   ------
Potential Rental Income                                              $         3,634,800         $        9,771
Effective Gross Income                                               $         3,557,916         $        9,564
Operating Expenses                                                   $         1,786,796         $        4,803    50.
Net Operating Income:                                                $         1,678,120         $        4,511

Capitalization Rate                                                                 8.75%
DIRECT CAPITALIZATION VALUE                                          $        18,900,000 *       $50,806 / UNIT

DISCOUNTED CASH FLOW ANALYSIS:
Holding Period                                                                  10 years
2002 Economic Vacancy                                                                 10%
Stabilized Vacancy & Collection Loss:                                                  8%
Lease-up / Stabilization Period                                                      N/A
Terminal Capitalization Rate                                                        9.25%
Discount Rate                                                                      11.00%
Selling Costs                                                                       2.00%
Growth Rates:
   Income                                                                           3.00%
   Expenses:                                                                        3.00%
DISCOUNTED CASH FLOW VALUE                                           $        19,500,000 *       $52,419 / UNIT

RECONCILED INCOME CAPITALIZATION VALUE                               $        19,000,000         $51,075 / UNIT




SALES COMPARISON APPROACH

PRICE PER UNIT:
   Range of Sales $/Unit (Unadjusted)                                $43,710 to $66,667
   Range of Sales $/Unit (Adjusted)                                  $49,875 to $55,967
VALUE INDICATION - PRICE PER UNIT                                    $       19,100,000 *       $51,344 / UNIT

EGIM ANALYSIS
   Range of EGIMs from Improved Sales                                       4.99 to 6.94
   Selected EGIM for Subject                                                        5.50
   Subject's Projected EGI                                           $         3,557,916
EGIM ANALYSIS CONCLUSION                                             $        19,300,000 *      $51,882 / UNIT

NOI PER UNIT ANALYSIS CONCLUSION                                     $        19,100,000 *      $51,344 / UNIT

RECONCILED SALES COMPARISON VALUE                                    $        19,100,000        $51,344 / UNIT




* Value indications are after adjustments for concessions, deferred maintenance, excess land and lease-up costs,
if any.
AMERICAN APPRAISAL ASSOCIATES, INC. EXECUTIVE SUMMARY PAGE 8
PLANTATION GARDENS, PLANTATION, FLORIDA

                   PART THREE - SUMMARY OF VALUE CONCLUSIONS

SALES COMPARISON APPROACH:
   Price Per Unit                              $    19,100,000
   NOI Per Unit                                $    19,100,000
   EGIM Multiplier                             $    19,300,000
INDICATED VALUE BY SALES COMPARISON            $    19,100,000   $51,344 / UNIT

INCOME APPROACH:
   Direct Capitalization Method:               $    18,900,000
   Discounted Cash Flow Method:                $    19,500,000
INDICATED VALUE BY THE INCOME APPROACH         $    19,000,000   $51,075 / UNIT

RECONCILED OVERALL VALUE CONCLUSION:           $    19,000,000   $51,075 / UNIT
AMERICAN APPRAISAL ASSOCIATES, INC. INTRODUCTION PAGE 9
PLANTATION GARDENS, PLANTATION, FLORIDA

                                                INTRODUCTION

IDENTIFICATION OF THE SUBJECT

The subject property is located at 7616 NW 5th Street, Plantation, Broward County, Florida. Plantation
identifies it as 5041-04-06-0010.

SCOPE OF THE ASSIGNMENT

The property, neighborhood, and comparables were inspected by Kim Cook on December 11, 2003. Edward
Zenkovich, ASA has not made a personal inspection of the subject property. Kim Cook assisted Edward
Zenkovich, ASA in the research, valuation analysis and writing the report. Both, Edward Zenkovich, ASA and
Kim Cook have extensive experience in appraising similar properties and meet the USPAP competency
provision.

The scope of this investigation comprises the inspection of the property and the collection, verification, and
analysis of general and specific data pertinent to the subject property. We have researched current improved
sales and leases of similar properties, analyzing them as to their comparability, and adjusting them accordingly.
We completed the Sales Comparison and Income Capitalization Approaches to value. From these approaches to
value, a concluded overall value was made.

DATE OF VALUE AND REPORT

This appraisal was made to express the opinion of value as of December 11, 2003. The date of the report is
December 23, 2003.

PURPOSE AND USE OF APPRAISAL

The purpose of the appraisal is to estimate the market value of the fee simple interest in the subject property. It is
understood that the appraisal is intended to assist the clients in litigation settlement proceedings. The appraisal
was not based on a requested minimum valuation, a specific valuation, or the approval of a loan.

PROPERTY RIGHTS APPRAISED

We have appraised the Fee Simple Estate in the subject property (as applied in the Sales & Income
Approaches), subject to the existing short-term leases. A Fee Simple Estate is defined in The Dictionary of Real
Estate Appraisal, 3rd ed. (Chicago: Appraisal Institute,
AMERICAN APPRAISAL ASSOCIATES, INC. INTRODUCTION PAGE 10
PLANTATION GARDENS, PLANTATION, FLORIDA

1993), as:

"Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the
governmental powers of taxation, eminent domain, police power, and escheat."

MARKETING/EXPOSURE PERIOD

MARKETING PERIOD: 6 to 12 months
EXPOSURE PERIOD: 6 to 12 months

HISTORY OF THE PROPERTY

Ownership in the subject property is currently vested in Consolidated Capital Equity Partners. To the best of our
knowledge, no transfers of ownership or offers to purchase the subject are known to have occurred during the
past three years.
AMERICAN APPRAISAL ASSOCIATES, INC. AREA ANALYSIS PAGE 11
PLANTATION GARDENS, PLANTATION, FLORIDA

                                 AREA / NEIGHBORHOOD ANALYSIS

NEIGHBORHOOD ANALYSIS

A neighborhood is a group of complementary land uses. The function of the neighborhood analysis is to describe
the immediate surrounding environs. The subject is located in the city of Plantation, Florida. Overall, the
neighborhood is characterized as a suburban setting with the predominant land use being residential/retail. The
subject's neighborhood is generally defined by the following boundaries.

NEIGHBORHOOD BOUNDARIES

East - Florida Turnpike
West - North University Drive
South - Interstate 595
North - Sunrise Boulevard

MAJOR EMPLOYERS

Major employers in the subject's area include American Express, Motorola, JM Family Enterprises, Nova
Southeastern University, Sun Sentinel, Holy Cross Medical Group, Bank of America, Ed Morse Automotive
Group, University Hospital and Alamo Rental Car. The overall economic outlook for the area is considered
favorable.

DEMOGRAPHICS

We have reviewed demographic data within the neighborhood. The following table summarizes the key data
points.
AMERICAN APPRAISAL ASSOCIATES, INC. AREA ANALYSIS PAGE 12
PLANTATION GARDENS, PLANTATION, FLORIDA

                                   NEIGHBORHOOD DEMOGRAPHICS

                                                         AREA
                                      -------------------------------------------
           CATEGORY                   1-MI. RADIUS    3-MI. RADIUS   5-MI. RADIUS       MSA
   -------------------------------------------------------------------------------------------
   POPULATION TRENDS
   Current Population                       10,615         105,296        270,413    2,297,162
   5-Year Population                        10,872         107,521        280,767    2,441,631
   % Change CY-5Y                              2.4%            2.1%           3.8%         6.3%
   Annual Change CY-5Y                         0.5%            0.4%           0.8%         1.3%

   HOUSEHOLDS
   Current Households                                 4,053             35,821            92,780          785,413
   5-Year Projected Households                        4,168             36,301            95,299          822,309
   % Change CY - 5Y                                     2.8%               1.3%              2.7%             4.7%
   Annual Change CY-5Y                                  0.6%               0.3%              0.5%             0.9%

   INCOME TRENDS
   Median Household Income                   $      69,296       $      66,227     $      56,401      $   33,054
   Per Capita Income                         $      34,299       $      31,295     $      27,366      $   18,389
   Average Household Income                  $      94,678       $      91,781     $      79,745      $   53,787




Source: Demographics Now

The subject neighborhood's population is expected to show increases below that of the region. The immediate
market offers superior income levels as compared to the broader market.

The following table illustrates the housing statistics in the subject's immediate area, as well as the MSA region.

                                              HOUSING TRENDS

                                                          AREA
                                      -------------------------------------------
           CATEGORY                   1-MI. RADIUS    3-MI. RADIUS   5-MI. RADIUS       MSA
   -------------------------------------------------------------------------------------------
   HOUSING TRENDS
   % of Households Renting               27.43%           22.20%        25.62%         37.56%
   5-Year Projected % Renting            29.46%           22.33%        25.10%         36.46%

   % of Households Owning                        67.68%               72.71%           68.67%             52.69%
   5-Year Projected % Owning                     65.84%               72.66%           69.33%             54.16%




Source: Demographics Now
AMERICAN APPRAISAL ASSOCIATES, INC. AREA ANALYSIS PAGE 13
PLANTATION GARDENS, PLANTATION, FLORIDA

SURROUNDING IMPROVEMENTS

The following uses surround the subject property:
North - Residential, church and private school South - Residential and Commercial
East - Residential/Municipal complex
West - Residential/Retail

CONCLUSIONS

The subject is well located within the city of Plantation. The neighborhood is characterized as being mostly
suburban in nature and is currently in the stable stage of development. The economic outlook for the
neighborhood is judged to be favorable with a good economic base.
AMERICAN APPRAISAL ASSOCIATES, INC. MARKET ANALYSIS PAGE 14
PLANTATION GARDENS, PLANTATION, FLORIDA

                                             MARKET ANALYSIS

The subject property is located in the city of Plantation in Broward County. The overall pace of development in
the subject's market is more or less stable. There were no new units added in the Plantation submarket in the last
year. The following table illustrates historical vacancy rates for the subject's market.

                                       HISTORICAL VACANCY RATE

                                   Period              Region      Submarket
                               ---------------------------------------------
                                     1998                 -          4.0%
                                     1999                 -          3.2%
                                     2000                 -          1.8%
                                     2001                 -          5.0%
                                     2002               5.2%         5.7%
                               3rd Quarter 2003         5.7%         5.0%




Source: REIS Subtrend Futures, Fort Lauderdale Apartment Market, 3rd Quarter 2003

Occupancy trends in the subject's market are stable. Historically speaking, the subject's submarket has equated
the overall market. Concessions are found throughout this market.

Market rents in the subject's market have been following an increasing trend. The following table illustrates
historical rental rates for the subject's market.

                                       HISTORICAL AVERAGE RENT

                            Period        Region   % Change   Submarket   % Change
                       -----------------------------------------------------------
                             1998          N/A          -     $     926        -
                             1999          N/A        N/A     $     919     -0.8%
                             2000          N/A        N/A     $     952      3.6%
                             2001          N/A        N/A     $     940     -1.3%
                             2002          N/A        N/A     $     948      0.9%
                       3rd Quarter 2003    N/A        N/A     $     954      0.6%




Source: REIS Subtrend Futures, Fort Lauderdale Apartment Market, 3rd Quarter 2003

The following table illustrates a summary of the subject's competitive set.

                                        COMPETITIVE PROPERTIES

  No.             Property Name        Units   Ocpy.   Year Built        Proximity to subject
---------------------------------------------------------------------------------------------------
  R-1        Southern Pointe            300     97%       1985     0.5 mile west of the subject
  R-2        Carlyle Club               150     94%       1997     1 mile northwest of the subject
  R-3        Jacaranda Village          NA      90%       1987     2 miles northwest of the subject
  R-4        Lakepointe at Jacaranda    246     95%       1986     0.5 mile west of subject
Subject      Plantation Gardens         372     97%       1971
AMERICAN APPRAISAL ASSOCIATES, INC. PROPERTY DESCRIPTION PAGE 15
PLANTATION GARDENS, PLANTATION, FLORIDA

                                  PROPERTY DESCRIPTION

   SITE ANALYSIS

     Site Area                         20.83 acres, or 907,355 square feet
     Shape                             Irregular
     Topography                        Level
     Utilities                         All necessary utilities are available to the site.
     Soil Conditions                   Stable
     Easements Affecting Site          None other than typical utility easements
     Overall Site Appeal               Good
     Flood Zone:
        Community Panel                120054 0215F, dated August 18, 1992
        Flood Zone                     Zone X
     Zoning                            PRD - 17Q, the subject improvements represent a legal
                                       conforming use of the site.




REAL ESTATE TAXES

                                            ASSESSED VALUE - 2003
                               ----------------------------------------------     TAX RATE /        PROPE
PARCEL NUMBER                     LAND            BUILDING           TOTAL        MILL RATE           TAX
---------------------------------------------------------------------------------------------------------
5041-04-06-0010                $4,083,170       $12,243,520       $16,326,690       0.02359           $38




IMPROVEMENT ANALYSIS

      Year Built                          1971
      Number of Units                     372
      Net Rentable Area                   326,800 Square Feet
      Construction:
       Foundation                         Reinforced concrete slab
       Frame                              Heavy or light wood
       Exterior Walls                     Stucco wall
       Roof                               Composition shingle over a wood truss structure
      Project Amenities                   Amenities at the subject include a
                                          swimming pool, spa/jacuzzi, basketball court,
                                          tennis court, gym room, barbeque equipment,
                                          meeting hall, laundry room, business office,
                                          and parking area.
      Unit Amenities                      Individual unit amenities include a garage,
                                          balcony, cable TV connection, vaulted
                                          ceiling, and washer dryer connection.
                                          Appliances available in each unit include a
                                          refrigerator, stove, dishwasher, water
                                          heater, garbage
AMERICAN APPRAISAL ASSOCIATES, INC. PROPERTY DESCRIPTION PAGE 16
PLANTATION GARDENS, PLANTATION, FLORIDA

disposal, and oven.

Unit Mix:

                                                                        Unit Area
                            Unit Type          Number of Units          (Sq. Ft.)
                         --------------------------------------------------------
                         1Bdrm/1Ba-1A10               42                   750
                         2Bdrm/2Ba-2A20              182                   850
                         2Bdrm/2Ba-2B20              148                   950



             Overall Condition                            Average
             Effective Age                                20 years
             Economic Life                                45 years
             Remaining Economic Life                      25 years
             Deferred Maintenance                         The deferred maintenance at the subject
                                                          property was estimated for a total
                                                          amount of $280,000.




HIGHEST AND BEST USE ANALYSIS

In accordance with the definition of highest and best use, an analysis of the site relating to its legal uses, physical
possibilities, and financial feasibility is appropriate. The highest and best use as vacant is to hold for future multi-
family development. The subject improvements were constructed in 1971 and consist of a 372-unit multifamily
project. The highest and best use as improved is for a continued multifamily use. Overall, the highest and best use
of the subject property is the continued use of the existing apartment project.
AMERICAN APPRAISAL ASSOCIATES, INC. VALUATION PROCEDURE PAGE 17
PLANTATION GARDENS, PLANTATION, FLORIDA

                                       THE VALUATION PROCEDURE

There are three traditional approaches, which can be employed in establishing the market value of the subject
property. These approaches and their applicability to the valuation of the subject are summarized as follows:

THE COST APPROACH

The application of the Cost Approach is based on the principle of substitution. This principle may be stated as
follows: no one is justified in paying more for a property than that amount by which he or she can obtain, by
purchase of a site and construction of a building, without undue delay, a property of equal desirability and utility.
In the case of a new building, no deficiencies in the building should exist.

In the case of income-producing real estate, the cost of construction plays a minor and relatively insignificant role
in determining market value. The Cost Approach is typically only a reliable indicator of value for: (a) new
properties; (b) special use properties; and (c) where the cost of reproducing the improvements is easily and
accurately quantified and there is no economic obsolescence. In all instances, the issue of an appropriate
entrepreneurial profit - the reward for undertaking the risk of construction, remains a highly subjective factor
especially in a market lacking significant speculative development.

THE SALES COMPARISON APPROACH

The Sales Comparison Approach is an estimate of value based upon a process of comparing recent sales of
similar properties in the surrounding or competing areas to the subject property. Inherent in this approach is the
principle of substitution.

The application of this approach consists of comparing the subject property with similar properties of the same
general type which have been sold recently or currently are available for sale in competing areas. This
comparative process involves judgment as to the similarity of the subject property and the comparable sale with
respect to many value factors such as location, contract rent levels, quality of construction, reputation and
prestige, age and condition, among others. The estimated value through this approach represents the probable
price at which a willing seller would sell the subject property to a willing and knowledgeable buyer as of the date
of value.
AMERICAN APPRAISAL ASSOCIATES, INC. VALUATION PROCEDURE PAGE 18
PLANTATION GARDENS, PLANTATION, FLORIDA

THE INCOME CAPITALIZATION APPROACH

The theory of the Income Capitalization Approach is based on the premise that present value is the value of the
cash flow and reversionary value the property will produce over a reasonable holding (ownership) period.

The Discounted Cash Flow Analysis will convert equity cash flows (including cash flows and equity reversion)
into a present value utilizing an internal rate of return (or discount rate). The Internal Rate of Return (IRR) will be
derived from a comparison of alternate investments, a comparative analysis of IRR's used by recent buyers of
similar properties, and a review of published industry surveys.

The Direct Capitalization Analysis converts one year of income into an overall value using overall capitalization
rates from similar sales. The overall rates take into consideration buyers assumptions of the market over the long-
term.

The results of the Income Capitalization Analysis are usually the primary value indicator for income producing
properties. Investors expect a reasonable rate of return on their equity investment based on the ownership risks
involved; this approach closely parallels the investment decision process.

RECONCILIATION

In this instance, we have completed the Sales Comparison and Income Capitalization Approaches to value. As
an income producing property, the income approach is a primary approach to value. The Sales Comparison
Approach is also considered reliable as investors are buying similar buildings in the market.

Our research indicates that market participants are generally not buying, selling, investing, or lending with reliance
placed on the methodology of the Cost Approach to establish the value. Therefore, we have decided that the
Cost Approach is not a reliable indicator of value for the subject, and this approach has not been utilized.
AMERICAN APPRAISAL ASSOCIATES, INC. SALES COMPARISON APPROACH PAGE 19
PLANTATION GARDENS, PLANTATION, FLORIDA

                                      SALES COMPARISON APPROACH

Use of market or comparable sales requires the collection and analysis of comparable sales data. Similar
properties recently sold are compared to the subject and adjusted based on any perceived differences. This
method is based on the premise that the costs of acquiring a substitute property would tend to establish a value
for the subject property. The premise suggests that if a substitute is unavailable in the market, the reliability of the
approach may be subordinate to the other approaches.

The reliance on substitute properties produces shortcomings in the validity of this approach. Geographic and
demographic characteristics from each submarket restrict which sales may be selected. Recent sales with a
similar physical characteristics, income levels, and location are usually limited. The sales we have identified,
however, do establish general valuation parameters as well as provide support to our conclusion derived through
the income approach method.

The standard unit of comparison among similar properties is the sales price per unit and price per square foot of
net rentable area. To accurately adjust prices to satisfy the requirements of the sales comparison approach,
numerous calculations and highly subjective judgments would be required including consideration of numerous
income and expense details for which information may be unreliable or unknown. The sales price per unit and
square foot are considered relevant to the investment decision, but primarily as a parameter against which value
estimates derived through the income approach can be judged and compared.

In examining the comparable sales, we have applied a subjective adjustment analysis, which includes specific
adjustments derived from our experience and consulting with the market participants.

SALES COMPARISON ANALYSIS

Detailed on the following pages are sales transactions involving properties located in the subject's competitive
investment market.

Photographs of the sale transactions are located in the Addenda. Following the summary of sales is an adjustment
grid that is used to arrive at a value.
AMERICAN APPRAISAL ASSOCIATES, INC. SALES COMPARISON APPROACH PAGE 20
PLANTATION GARDENS, PLANTATION, FLORIDA

SUMMARY OF COMPARABLE SALES -IMPROVED

                                                                         COMPARABLE                    CO
             DESCRIPTION                     SUBJECT                        I - 1
---------------------------------------------------------------------------------------------------------
  Property Name                      Plantation Gardens       Townhomes of Plantation          Cimarron A
LOCATION:
  Address                            7616 NW 5th Street       4790 NW 9th Court                850 E. Com
  City, State                        Plantation, Florida      Plantation, Florida              Oakland Pa
  County                             Broward                  Broward County                   Broward Co
PHYSICAL CHARACTERISTICS:
  Net Rentable Area (SF)             326,800                  150,168                          105,816
  Year Built                         1971                     1973                             1973
  Number of Units                    372                      183                              106
  Unit Mix:                               Type          Total    Type                  Total      Type
                                     1Bdrm/1Ba -1A10      42  1Bedroom                    54   1 Bedroom
                                     2Bdrm/2Ba -2A20     182  2Bedroom                   129   2 Bedroom
                                     2Bdrm/2Ba -2B20     148                                   3 Bedroom
                                                                                               3 Bedroom
  Average Unit Size (SF)             878                      821                              998
  Land Area (Acre)                   20.8300                  9.0200                           4.9900
  Density (Units/Acre)               17.9                     20.3                             21.2
  Parking Ratio (Spaces/Unit)        1.08
  Parking Type (Gr., Cov., etc.)     Open parking lot         Open                             Open
CONDITION:                           Average                  Average                          Average
APPEAL:                              Average                  Average                          Average
AMENITIES:
  Pool/Spa                           Yes/Yes                  Yes/No                           No/No
  Gym Room                           Yes                      No                               No
  Laundry Room                       Yes                      Yes                              Yes
  Secured Parking                    No                       No                               No
  Sport Courts                       Yes                      No                               No
OCCUPANCY:                           97%                      97%                              NA
TRANSACTION DATA:
  Sale Date                                                   September, 2002                  May, 2003
  Sale Price ($)                                              $9,100,000                       $5,650,000
  Grantor                                                     Chisolm Realty Company, Ltd      Triad Laud
  Grantee                                                     Advenir Townhomes, LLC           Cimarron A
                                                                                               Broward
  Sale Documentation                                          Bk 33787     Pg 0896             Bk 35269 P
  Verification                                                Broker, Marcus & Millichap       Broker, Ma
  Telephone Number
ESTIMATED PRO-FORMA:                                             Total $     $/Unit    $/SF    Total $ $
  Potential Gross Income                                       $1,654,545    $9,041   $11.02      $0
  Vacancy/Credit Loss                                         ($    57,413) ($ 314) ($ 0.38)      $0
  Effective Gross Income                                       $1,597,132    $8,727   $10.64      $0
  Operating Expenses                                           $ 842,675     $4,605   $ 5.61      $0
  Net Operating Income                                         $ 754,457     $4,123   $ 5.02      $0
NOTES:                                                        Seller's downleg in a 1031
                                                              exchange
  PRICE PER UNIT                                                           $49,727
  PRICE PER SQUARE FOOT                                                    $ 60.60
  EXPENSE RATIO                                                               52.8%
  EGIM                                                                        5.70
  OVERALL CAP RATE                                                            8.29%
  Cap Rate based on Pro Forma or Actual Income?                           PRO FORMA

                                                      COMPARABLE                   COMPARABLE
             DESCRIPTION                                 I - 3                       I - 4
---------------------------------------------------------------------------------------------------------
  Property Name                             Spring Crest                  Royal Sheridan Apartments     B
LOCATION:
  Address                                   4245 N. University Drive      4200 Sheridan Street          2
  City, State                               Plantation, Florida           Hollywood, Florida            S
  County                                    Broward County                Broward County                B
PHYSICAL CHARACTERISTICS:
  Net Rentable Area (SF)                    176,688                       88,778                        2
  Year Built                                1980                          1974                          1
  Number of Units                           168                           100                           3
  Unit Mix:                                     Type               Total      Type              Total
                                            1 Bedroom                 14  1 Bedroom               48    1
                                            2 Bedroom                154  2 Bedroom               52    2
                                            3 Bedroom                N/A
  Average Unit Size (SF)                    1,052                         888                           8
  Land Area (Acre)                          NA                             3.8800                         1
  Density (Units/Acre)                                                     25.8                           2
  Parking Ratio (Spaces/Unit)               0.00                           0.00
  Parking Type (Gr., Cov., etc.)            Open                           Open                           O
CONDITION:                                  Average                        Average                        F
APPEAL:                                     Average                        Fair                           F
AMENITIES:
  Pool/Spa                                  Yes/No                         Yes/No                         Y
  Gym Room                                  No                             No                             N
  Laundry Room                              Yes                            Yes                            Y
  Secured Parking                           No                             No                             N
  Sport Courts                              Yes                            No                             Y
OCCUPANCY:                                  94%                            NA                             9
TRANSACTION DATA:
  Sale Date                                 September, 2003                March, 2001                    J
  Sale Price ($)                            $11,200,000                    $5,250,000                     $
  Grantor                                   Waterton Crest, LLC            Royal Sheridan Apartments      P
  Grantee                                   Springcrest LLC                Sheridan Apartments, LLC       M
  Sale Documentation                        Bk 36063 Pg 1045               Bk 31333 Pg 0945               B
  Verification                              Broker, Marcus & Millichap     Seller's Broker                G
  Telephone Number
ESTIMATED PRO-FORMA:                           Total $   $/Unit    $/SF    Total $      $/Unit    $/SF
  Potential Gross Income                    $1,716,584 $10,218     $9.72                                  $
  Vacancy/Credit Loss                       $ 102,995 $      613   $0.58                                  $
  Effective Gross Income                    $1,613,589 $ 9,605     $9.13   $859,200     $8,592    $9.68   $
  Operating Expenses                        $ 672,000 $ 4,000      $3.80   $310,000     $3,100    $3.49   $
  Net Operating Income                      $1,008,000 $ 6,000     $5.70   $549,200     $5,492    $6.19   $
NOTES:
  PRICE PER UNIT                                        $66,667                        $52,500
  PRICE PER SQUARE FOOT                                 $ 63.39                        $ 59.14
  EXPENSE RATIO                                            41.6%                          36.1%
  EGIM                                                     6.94                           6.11
  OVERALL CAP RATE                                         9.00%                         10.46%
  Cap Rate based on Pro Forma or Actual Income?        PRO FORMA                      PRO FORMA
AMERICAN APPRAISAL ASSOCIATES, INC. SALES COMPARISON APPROACH PAGE 21
PLANTATION GARDENS, PLANTATION, FLORIDA

                                        IMPROVED SALES MAP

                                                   [MAP]

IMPROVED SALES ANALYSIS

The improved sales indicate a sales price range from $43,710 to $66,667 per unit. Adjustments have been made
to the sales to reflect differences in location, age/condition and quality/appeal. Generally speaking, larger
properties typically have a lower price per unit when compared to smaller properties, all else being equal.
Similarly, those projects with a higher average unit size will generally have a higher price per unit. After
appropriate adjustments are made, the improved sales demonstrate an adjusted range for the subject from
$49,875 to $55,967 per unit with a mean or average adjusted price of $52,101 per unit. The median adjusted
price is $52,213 per unit. Based on the following analysis, we have concluded to a value of $52,000 per unit,
which results in an "as is" value of $19,100,000 (rounded after necessary adjustment, if any).
AMERICAN APPRAISAL ASSOCIATES, INC. SALES COMPARISON APPROACH PAGE 22
PLANTATION GARDENS, PLANTATION, FLORIDA

SALES ADJUSTMENT GRID

                                                                       COMPARABLE                 COMPARAB
             DESCRIPTION                      SUBJECT                     I - 1                      I - 2
---------------------------------------------------------------------------------------------------------
  Property Name                      Plantation Gardens       Townhomes of Plantation    Cimarron Apartme
  Address                            7616 NW 5th Street       4790 NW 9th Court          850 E. Commercia
  City                               Plantation, Florida      Plantation, Florida        Oakland Park
  Sale Date                                                   September, 2002            May, 2003
  Sale Price ($)                                              $9,100,000                 $5,650,000
  Net Rentable Area (SF)             326,800                  150,168                    105,816
  Number of Units                    372                      183                        106
  Price Per Unit                                              $49,727                    $53,302
  Year Built                         1971                     1973                       1973
  Land Area (Acre)                   20.8300                  9.0200                     4.9900
VALUE ADJUSTMENTS                        DESCRIPTION              DESCRIPTION      ADJ.      DESCRIPTION
  Property Rights Conveyed           Fee Simple Estate        Fee Simple Estate     0%   Fee Simple Estat
  Financing                                                   Cash To Seller        0%   Cash To Seller
  Conditions of Sale                                          Arm's Length          0%   Arm's Length
  Date of Sale (Time)                                         09-2002               0%   05-2003
VALUE AFTER TRANS. ADJUST. ($/UNIT)                                     $49,727                     $53,30
  Location                                                    Comparable            0%   Inferior
  Number of Units                    372                      183                 -10%   106
  Quality / Appeal                   Average                  Inferior             10%   Inferior
  Age / Condition                    1971                     1973 / Average        0%   1973 / Average
  Occupancy at Sale                  97%                      97%                   0%   NA
  Amenities                          Average                  Inferior              5%   Inferior
  Average Unit Size (SF)             878                      821                   0%   998
PHYSICAL ADJUSTMENT                                                                 5%
FINAL ADJUSTED VALUE ($/UNIT)                                           $52,213                     $55,96

                                              COMPARABLE                COMPARABLE                COMPARAB
             DESCRIPTION                         I - 3                     I - 4                     I - 5
---------------------------------------------------------------------------------------------------------
  Property Name                      Spring Crest              Royal Sheridan Apartments Boardwalk at
                                                                                          Inverrary
  Address                            4245 N. University Drive 4200 Sheridan Street        2915 NW 60th
                                                                                          Ave
  City                               Plantation, Florida       Hollywood, Florida         Sunrise,
                                                                                          Florida
  Sale Date                          September, 2003           March, 2001                July, 2003
  Sale Price ($)                     $11,200,000               $5,250,000                 $13,550,000
  Net Rentable Area (SF)             176,688                   88,778                     267,470
  Number of Units                    168                       100                        310
  Price Per Unit                     $66,667                   $52,500                    $43,710
  Year Built                         1980                      1974                       1973
  Land Area (Acre)                   NA                        3.8800                     11.2600
VALUE ADJUSTMENTS                        DESCRIPTION      ADJ.     DESCRIPTION      ADJ.    DESCRIPTION
  Property Rights Conveyed           Fee Simple Estate     0%  Fee Simple Estate     0%   Fee Simple
                                                                                          Estate
  Financing                          Cash To Seller        0%  Cash To Seller        0%   Cash To Seller
  Conditions of Sale                 Arm's Length          0%  Arm's Length          0%   Arm's Length
  Date of Sale (Time)                09-2003               0%  03-2001               0%   07-2003
VALUE AFTER TRANS. ADJUST. ($/UNIT)            $66,667                   $52,500                    $43,71
  Location                           Comparable            0%  Inferior             10%   Inferior
  Number of Units                    168                 -10%  100                 -15%   310
  Quality / Appeal                   Comparable            0%  Comparable            0%   Comparable
  Age / Condition                    1980 / Average       -5%  1974 / Average        0%   1973 / Fair
  Occupancy at Sale                  94%                   0%  NA                    0%   94%
  Amenities                          Comparable            0%  Comparable            0%   Comparable
  Average Unit Size (SF)             1,052               -10%  888                   0%   863
PHYSICAL ADJUSTMENT                                      -25%                       -5%
FINAL ADJUSTED VALUE ($/UNIT)                  $50,000                   $49,875                    $52,45




SUMMARY

         VALUE RANGE (PER UNIT)                          $49,875         TO     $55,967
         MEAN (PER UNIT)                                 $52,101
         MEDIAN (PER UNIT)                               $52,213
         VALUE CONCLUSION (PER UNIT)                     $52,000
            VALUE OF IMPROVEMENT & MAIN SITE                                          $19,344,000
              DEFERRED MAINTENANCE                                                   -$   280,000
            VALUE INDICATED BY SALES COMPARISON APPROACH                              $19,064,000
            ROUNDED                                                                   $19,100,000




NET OPERATING INCOME (NOI) ANALYSIS

We have also conducted a net operating income (NOI) comparison analysis. The NOI effectively takes into
account the various physical, location, and operating aspects of the sale. When the subject's NOI is compared to
the sale NOI, a percent adjustment can be arrived at. The following table illustrates this analysis.
AMERICAN APPRAISAL ASSOCIATES, INC. SALES COMPARISON APPROACH PAGE 23
PLANTATION GARDENS, PLANTATION, FLORIDA

                                       NOI PER UNIT COMPARISON

                       SALE PRICE              NOI/      SUBJECT NOI
   COMPARABLE NO. OF -----------            -------------------------- ADJUSTMENT INDICATED
       NO.      UNITS PRICE/UNIT     OAR     NOI/UNIT   SUBJ. NOI/UNIT    FACTOR    VALUE/UNIT
   -------------------------------------------------------------------------------------------
      I-1        183   $ 9,100,000   8.29% $ 754,457      $1,678,120       1.094     $54,411
                       $    49,727          $    4,123    $    4,511
      I-2        106   $ 5,650,000   0.00%                $1,678,120
                       $    53,302                        $    4,511
      I-3        168   $11,200,000    N/A   $1,008,000    $1,678,120       0.752     $50,123
                       $    66,667          $    6,000    $    4,511
      I-4        100   $ 5,250,000 10.46% $ 549,200       $1,678,120       0.821     $43,123
                       $    52,500          $    5,492    $    4,511
      I-5        310   $13,550,000   8.36% $1,133,037     $1,678,120       1.234     $53,948
                       $    43,710          $    3,655    $    4,511




                                                  PRICE/UNIT

                           Low                High               Average           Median
                         $43,123            $54,411              $50,401           $52,036




                   VALUE ANALYSIS BASED ON COMPARABLES NOI PER UNIT

                            Estimated Price Per Unit                        $    52,000
                                                                            -----------
                            Number of Units                                         372
                            Value                                           $19,344,000
                              Deferred Maintenance                         -$   280,000
                                                                            -----------
                            Value Based on NOI Analysis                     $19,064,000
                                                               Rounded      $19,100,000




The adjusted sales indicate a range of value between $43,123 and $54,411 per unit, with an average of $50,401
per unit. Based on the subject's competitive position within the improved sales, a value of $52,000 per unit is
estimated. This indicates an "as is" market value of $19,100,000 (rounded after necessary adjustment, if any) for
the NOI Per Unit Analysis.

EFFECTIVE GROSS INCOME MULTIPLIER (EGIM) ANALYSIS

The effective gross income multiplier (EGIM) is derived by dividing the sales price by the total effective gross
income. The following table illustrates the EGIMs for the comparable improved sales.
AMERICAN APPRAISAL ASSOCIATES, INC. SALES COMPARISON APPROACH PAGE 24
PLANTATION GARDENS, PLANTATION, FLORIDA

                    EFFECTIVE GROSS INCOME MULTIPLIER COMPARISON

                          SALE PRICE
      COMPARABLE NO. OF -----------     EFFECTIVE    OPERATING              SUBJECT
          NO.      UNITS PRICE/UNIT    GROSS INCOME   EXPENSE     OER    PROJECTED OER EGIM
      --------------------------------------------------------------------------------------
         I-1        183   $ 9,100,000   $1,597,132   $ 842,675 52.76%                   5.70
                          $    49,727
         I-2        106   $ 5,650,000
                          $    53,302
         I-3        168   $11,200,000   $1,613,589   $ 672,000 41.65%                   6.94
                                                                             50.22%
                          $    66,667
         I-4        100   $ 5,250,000   $ 859,200    $ 310,000 36.08%                   6.11
                          $    52,500
         I-5        310   $13,550,000   $2,714,037   $1,581,000 58.25%                  4.99
                          $    43,710




                                                    EGIM

                         Low             High               Average             Median
                         4.99            6.94                5.94                5.90




                VALUE ANALYSIS BASED ON EGIM'S OF COMPARABLE SALES

            Estimate EGIM                                                                     5.50
                                                                                      ------------
            Subject EGI                                                                $ 3,557,916
            Value                                                                      $19,568,538
              Deferred Maintenance                                                    -$   280,000
                                                                                      ------------
            Value Based on EGIM Analysis                                               $19,288,538
                                                                Rounded                $19,300,000
                                   Value Per Unit                                      $    51,882




There is an inverse relationship, which generally holds among EGIMs and operating expenses. Properties, which
have higher expense ratios, typically sell for relatively less and therefore produce a lower EGIM. As will be
illustrated in the Income Capitalization Approach of this report, the subject's operating expense ratio (OER) is
estimated at 50.22% before reserves. The comparable sales indicate a range of expense ratios from 36.08% to
58.25%, while their EGIMs range from 4.99 to 6.94. Overall, we conclude to an EGIM of 5.50, which results in
an "as is" value estimate in the EGIM Analysis of $19,300,000.

SALES COMPARISON CONCLUSION

The three valuation methods in the Sales Comparison Approach are shown below. The overall value via the Sales
Comparison Approach is estimated at $19,100,000.

                   Price Per Unit                                               $19,100,000
                   NOI Per Unit                                                 $19,100,000
                   EGIM Analysis                                                $19,300,000

                   Sales Comparison Conclusion                                  $19,100,000
AMERICAN APPRAISAL ASSOCIATES, INC. INCOME CAPITALIZATION APPROACH PAGE
25
PLANTATION GARDENS, PLANTATION, FLORIDA

                                 INCOME CAPITALIZATION APPROACH

The income capitalization approach is based on the premise that value is created by the expectation of future
benefits. We estimated the present value of those benefits to derive an indication of the amount that a prudent,
informed purchaser-investor would pay for the right to receive them as of the date of value.

This approach requires an estimate of the NOI of a property. The estimated NOI is then converted to a value
indication by use of either the direct capitalization or the discounted cash flow analysis (yield capitalization).

Direct capitalization uses a single year's stabilized NOI as a basis for a value indication by dividing the income by
a capitalization rate. The rate chosen accounts for a recapture of the investment by the investor and should reflect
all factors that influence the value of the property, such as tenant quality, property condition, neighborhood
change, market trends, interest rates, and inflation. The rate may be extracted from local market transactions or,
when transaction evidence is lacking, obtained from trade sources.

A discounted cash flow analysis focuses on the operating cash flows expected from the property and the
proceeds of a hypothetical sale at the end of a holding period (the reversion). The cash flows and reversion are
discounted to their present values using a market-derived discount rate and are added together to obtain a value
indication. Because benefits to be received in the future are worth less than the same benefits received in the
present, this method weights income in the early years more heavily than the income and the sale proceeds to be
received later. The strength of the discounted cash flow method is its ability to recognize variations in projected
net income, such as those caused by inflation, stepped leases, neighborhood change, or tenant turnover. Its
weakness is that it requires many judgments regarding the actions of likely buyers and sellers of the property in
the future.

In some situations, both methods yield a similar result. The discounted cash flow method is typically more
appropriate for the analysis of investment properties with multiple or long-term leases, particularly leases with
cancellation clauses or renewal options. It is especially useful for multi-tenant properties in volatile markets. The
direct capitalization
AMERICAN APPRAISAL ASSOCIATES, INC. INCOME CAPITALIZATION APPROACH PAGE
26
PLANTATION GARDENS, PLANTATION, FLORIDA

method is normally more appropriate for properties with relatively stable operating histories and expectations.

A pro forma analysis for the first year of the investment is made to estimate a reasonable potential net operating
income for the Subject Property. Such an analysis entails an estimate of the gross income the property should
command in the marketplace. From this total gross income must be deducted an allowance for vacancy/collection
loss and operating expenses as dictated by general market conditions and the overall character of the subject's
tenancy and leased income to arrive at a projected estimate of net operating income. Conversion of the net
operating income to an indication of value is accomplished by the process of capitalization, as derived primarily
from market data.

MARKET RENT ANALYSIS

In order to determine a market rental rate for the subject, a survey of competing apartment communities was
performed. This survey was displayed previously in the market analysis section of the report. Detailed information
pertaining to each of the comparable rental communities, along with photographs, is presented in the Addenda of
this report.

The following charts display the subject's current asking and actual rent rates as well as a comparison with the
previous referenced comparable rental properties.

                               SUMMARY OF ACTUAL AVERAGE RENTS

                                                            Average
                                            Unit Area ----------------
                       Unit Type            (Sq. Ft.) Per Unit Per SF %Occupied
                    --------------------------------------------------------------
                    1Bdrm/1Ba-1A10             750       $719    $0.96     97.6%
                    2Bdrm/2Ba-2A20             850       $763    $0.90     97.8%
                    2Bdrm/2Ba-2B20             950       $816    $0.86     95.3%
AMERICAN APPRAISAL ASSOCIATES, INC. INCOME CAPITALIZATION APPROACH PAGE
27
PLANTATION GARDENS, PLANTATION, FLORIDA

                                                RENT ANALYSIS

                                                                               COMPARABLE RENTS
                                                                    -------------------------------------
                                                                       R1        R2        R3          R4
                                                                    -------------------------------------
                                                                    SOUTHERN CARLYLE    TACARANDA LAKEPOI
                                                                     POINT     CLUB      VILLAGE   TACARA
                                                                    -------------------------------------
                                                  SUBJECT   SUBJECT         COMPARISON TO SUBJECT
    DESCRIPTION                   SUBJECT UNIT    ACTUAL    ASKING -------------------------------------
                                      TYPE         RENT      RENT   Superior Superior    Superior   Super
---------------------------------------------------------------------------------------------------------
Monthly Rent                     1Bdrm/1Ba-1A10   $ 719     $ 772              $ 930      $ 785      $ 7
Unit Area (SF)                                       750      750                 760         800       8
Monthly Rent Per Sq. Pt                           $ 0.96    $1.05              $ 1.22     $ 0.98     $ 0.

Monthly Rent                           2Bdrm/2Ba-2A20      $  765      $ 829     $ 950       $1.050                  $  8
Unit Area (SF)                                                850        850       974          963                   1,0
Monthly Rent Per Sq. Pt                                    $ 0.90      $0.98     $0.98       $ 1.09                  $ 0.

Monthly Rent                           2Bdrm/2Ba-2B20      $  816      $ 899                 $1,150       $  930     $1,0
Unit Area (SF)                                                950        950                  1,093        1,100      1,1
Monthly Rent Per Sq. Pt                                    $ 0.86      $0.95                 $ 1.05       $ 0.84     $ 0.

    DESCRIPTION                   MIN      MAX    MEDIAN    AVERAGE
-------------------------------------------------------------------
Monthly Rent                     $ 785 $ 930      $ 795     $ 837
Unit Area (SF)                      760     810      800       790
Monthly Rent Per Sq. Pt          $ 1.98 $ 1.22    $ 0.98    $ 1.06

Monthly Rent                           $  899    $1,050    $  954      $  966
Unit Area (SF)                            963     1,035       974         991
Monthly Rent Per Sq. Pt                $ 0.87    $ 1.09    $ 0.98      $ 0.97

Monthly Rent                           $  950    $1,150    $1,046      $1,042
Unit Area (SF)                          1,093     1,102     1,100        1098
Monthly Rent Per Sq. Pt                $ 0.84    $ 1.05    $ 0.93      $ 0.93




CONCLUDED MARKET RENTAL RATES AND TERMS

Based on this analysis above, the subject's concluded market rental rates and gross rental income is calculated as
follows:

                                GROSS RENTAL INCOME PROJECTION

                                                      Market Rent
                                      Unit Area   ------------------        Monthly      Annual
   Unit Type      Number of Units     (Sq. Ft.)   Per Unit   Per SF         Income       Income
-------------------------------------------------------------------------------------------------
1Bdrm/1Ba-1A10           42              750      $   750   $   1.00      $   31,500   $ 378,000
2Bdrm/2Ba-2A20          182              850      $   800   $   0.94      $ 145,600    $1,747,200
2Bdrm/2Ba-2B20          148              950      $   850   $   0.89      $ 125,800    $1,509,600
                                                            -------------------------------------
                                                              Total       $ 302,900    $3,634,800
                                                            =====================================




PRO FORMA ANALYSIS

For purposes of this appraisal, we were provided with income and expense data for the subject property. A
summary of this data is presented on the following page.
AMERICAN APPRAISAL ASSOCIATES, INC. INCOME CAPITALIZATION APPROACH PAGE
28
PLANTATION GARDENS, PLANTATION, FLORIDA

SUMMARY OF HISTORICAL INCOME & EXPENSES

                           FISCAL YEAR     2001      FISCAL YEAR     2002      FISCAL YEAR     2003
                           ---------------------------------------------------------------------------
                                   ACTUAL                    ACTUAL               MANAGEMENT BUDGET
                           ---------------------------------------------------------------------------
     DESCRIPTION              TOTAL       PER UNIT      TOTAL       PER UNIT       TOTAL      PER UNIT
------------------------------------------------------------------------------------------------------
Revenues
 Rental Income             $3,559,658   $    9,569   $3,608,966   $    9,702   $3,638,000   $    9,780

 Vacancy                   $ 166,432     $      447   $ 318,849     $      857   $ 235,500     $      633
 Credit Loss/Concessions   $   33,382    $       90   $   45,582    $      123   $   72,000    $      194
                           ----------    ----------   ----------    ----------   ----------    ----------
 Subtotal                  $ 199,814     $      537   $ 364,431     $      980   $ 307,500     $      827

 Laundry Income            $   43,175    $      116   $   38,126    $      102   $   60,000    $      161
 Garage Revenue            $        0    $        0   $        0    $        0   $        0    $        0
 Other Misc. Revenue       $ 177,338     $      477   $ 166,732     $      448   $ 162,000     $      435
                           ----------    ----------   ----------    ----------   ----------    ----------
 Subtotal Other Income     $ 220,513     $      593   $ 204,858     $      551   $ 222,000     $      597

                           ----------    ----------   ----------    ----------   ----------    ----------
Effective Gross Income     $3,580,357    $    9,625   $3,449,393    $    9,273   $3,552,500    $    9,550

Operating Expenses
 Taxes                     $   332,993   $     895    $   345,788   $     930    $   375,836   $   1,010
 Insurance                 $   144,526   $     389    $   151,502   $     407    $   133,608   $     359
 Utilities                 $   289,742   $     779    $   309,605   $     832    $   170,400   $     458
 Repair & Maintenance      $   166,893   $     449    $   182,278   $     490    $   286,800   $     771
 Cleaning                  $    29,074   $      78    $    55,845   $     150    $    61,200   $     165
 Landscaping               $    40,145   $     108    $    39,022   $     105    $         0   $       0
 Security                  $    16,792   $      45    $         0   $       0    $         0   $       0
 Marketing & Leasing       $    70,073   $     188    $    79,355   $     213    $    70,800   $     190
 General Administrative    $   352,013   $     946    $   297,272   $     799    $   340,080   $     914
 Management                $   190,024   $     511    $   169,939   $     457    $   163,420   $     439
 Miscellaneous             $         0   $       0    $         0   $       0    $         0   $       0

                           ----------    ----------   ----------    ----------   ----------    ----------
Total Operating Expenses   $1,632,275    $    4,388   $1,630,606    $    4,383   $1,602,144    $    4,307

 Reserves                  $        0    $       0    $        0    $       0    $        0    $       0

                           ----------    ----------   ----------    ----------   ----------    ----------
Net Income                 $1,948,082    $    5,237   $1,818,787    $    4,889   $1,950,356    $    5,243

                           ANNUALIZED       2003
                           -----------------------
                                   ACTUAL                       AAA PROJECTION
                           ------------------------------------------------------------
     DESCRIPTION              TOTAL      PER UNIT       TOTAL      PER UNIT          %
---------------------------------------------------------------------------------------
Revenues
 Rental Income             $3,588,877   $    9,648   $3,634,800   $    9,771      100.0%

 Vacancy                   $ 284,856     $      766   $ 218,088     $      586         6.0%
 Credit Loss/Concessions   $   95,584    $      257   $   72,696    $      195         2.0%
                           ----------    ----------   ----------    ----------       -----
 Subtotal                  $ 380,440     $    1,023   $ 290,784     $      782         8.0%

 Laundry Income            $   36,372    $       98   $   46,500    $     125          1.3%
 Garage Revenue            $        0    $        0   $        0                       0.0%
 Other Misc. Revenue       $ 167,788     $      451   $ 167,400     $      450         4.6%
                           ----------    ----------   ----------    ----------       -----
 Subtotal Other Income     $ 204,160     $      549   $ 213,900     $      575         5.9%

                           ----------    ----------   ----------    ----------       -----
Effective Gross Income     $3,412,597    $    9,174   $3,557,916    $    9,564       100.0%
Operating Expenses
 Taxes                          $   338,191     $       909     $   385,020    $     1,035          10.8%
 Insurance                      $   158,865     $       427     $   148,800    $       400           4.2%
 Utilities                      $   312,104     $       839     $   312,480    $       840           8.8%
 Repair & Maintenance           $   231,345     $       622     $   241,800    $       650           6.8%
 Cleaning                       $    71,319     $       192     $    66,960    $       180           1.9%
 Landscaping                    $    53,064     $       143     $    46,500    $       125           1.3%
 Security                       $    15,616     $        42     $    16,740    $        45           0.5%
 Marketing & Leasing            $   150,825     $       405     $    74,400    $       200           2.1%
 General Administrative         $   280,028     $       753     $   316,200    $       850           8.9%
 Management                     $   165,000     $       444     $   177,896    $       478           5.0%
 Miscellaneous                  $         0     $         0     $         0    $         0           0.0%

                                ----------      ----------      ----------     ----------         -----
Total Operating Expenses        $1,776,357      $    4,775      $1,786,796     $    4,803          50.2%

 Reserves                       $          0    $          0    $   93,000     $        250          2.6%

                                ----------      ----------      ----------     ----------         -----
Net Income                      $1,636,240      $    4,398      $1,678,120     $    4,511          47.2%




REVENUES AND EXPENSES

The subject's revenue and expense projections are displayed on the previous chart. Rental income is based on
the market analysis previously discussed. Other income consists of forfeited deposits, laundry income, late rent
payments, month to month fees, pet fees, vending machine revenue, etc.

We forecasted the property's annual operating expenses after reviewing its historical performance at the subject
property. We analyzed each item of expense and attempted to forecast amounts a typical informed investor
would consider reasonable.

VACANCY AND COLLECTION LOSS

An investor is primarily interested in the annual revenue an income property is likely to produce over a specified
period of time, rather than the income it could produce if it were always 100% occupied and all tenants were
paying their rent in full and on time. An investor normally expects some income loss as tenants vacate, fail to pay
rent, or pay their rent late.
AMERICAN APPRAISAL ASSOCIATES, INC. INCOME CAPITALIZATION APPROACH PAGE
29
PLANTATION GARDENS, PLANTATION, FLORIDA

We have projected a stabilized vacancy and collection loss rate of 8% based on the subject's historical
performance, as well as the anticipated future market conditions.

RESERVES FOR REPLACEMENT

"Reserves for replacements" is a contingency account allocated to the expenses of the property to provide for
replacement of short-lived items and for unforeseen necessary capital expenditures. We have utilized the Korpacz
Real Estate Investor Survey of the national apartment market, which reports a range of replacement reserves
between $150 and $400 per unit. For purposes of this analysis, we have included an allowance of $250 per unit
for reserves for replacement.

CAPITAL EXPENDITURES

Capital expenditures represent expenses for immediate repair or replacement of items that have average to long
lives. Based on our inspection of the property as well as discussions with property management personnel, there
are some major items remaining in need of repair or replacement that would require an expense beyond our
reserves for replacement. Therefore an additional $280,000 has been deducted.

DISCOUNTED CASH FLOW ANALYSIS

As the subject is a multi-tenant income property, the Discounted Cash Flow Method is considered appropriate.
This method is especially meaningful in that it isolates the timing of the annual cash flows and discounts them,
along with the expected equity reversion, to a present value. The present value of the cash flow is added to the
present value of the reversion, resulting in a total property value.

INVESTMENT CRITERIA

Appropriate investment criteria will be derived for the subject based upon analysis of comparable sales and a
survey of real estate investors. The following table summarizes the findings of Korpacz National Investor Survey
for the most recent period.
AMERICAN APPRAISAL ASSOCIATES, INC. INCOME CAPITALIZATION APPROACH PAGE
30
PLANTATION GARDENS, PLANTATION, FLORIDA

                               KORPACZ NATIONAL INVESTOR SURVEY
                                       3RD QUARTER 2003
                                 NATIONAL APARTMENT MARKET

                                                 CAPITALIZATION RATES
                                             ------------------------------
                                               GOING-IN        TERMINAL
                                             ------------------------------
                                              LOW    HIGH     LOW     HIGH
                                  -----------------------------------------
                                  RANGE      5.50%   9.50%   6.00%   10.00%
                                  AVERAGE        7.61%           8.14%




                                          SUMMARY OF OVERALL
                                          CAPITALIZATION RATES

                         COMP. NO.     SALE DATE     OCCUP. PRICE/UNIT     OAR
                         -------------------------------------------------------
                         I-1             Sep-02        97%   $49,727       8.29%
                         I-2             May-03        NA    $53,302       N/A
                         I-3             Sep-03        94%   $66,667       9.00%
                         I-4             Mar-01        NA    $52,500      10.46%
                         I-5             Jul-03        94%   $43,710       8.36%
                                                                High      10.46%
                                                                 Low       8.29%
                                                             Average       9.03%




Based on this information, we have concluded the subject's overall capitalization rate should be 8.75%. The
terminal capitalization rate is applied to the net operating income estimated for the year following the end of the
holding period. Based on the concluded overall capitalization rate, the age of the property and the surveyed
information, we have concluded the subject's terminal capitalization rate to be 9.25%. Finally, the subject's
discount rate or yield rate is estimated based on the previous investor survey and an examination of returns
available on alternative investments in the market. Based on this analysis, the subject's discount rate is estimated
to be 11.00%.

HOLDING PERIOD

The survey of investors indicates that most investors are completing either 10-year cash flows or extending the
analysis to the end of the lease if it is more than 10-years. A 10-year period has been used in the analysis of the
subject with the eleventh year stabilized NOI used to determine the reversion.

SELLING COSTS

Sales of similar size properties are typically accomplished with the aid of a broker and will also incur legal and
other transaction related cost. Based on our survey of brokers and a
AMERICAN APPRAISAL ASSOCIATES, INC. INCOME CAPITALIZATION APPROACH PAGE
31
PLANTATION GARDENS, PLANTATION, FLORIDA

review of institutional investor projections, an allowance of 2.00% of the sale amount is applied.

DISCOUNTED CASH FLOW CONCLUSION

Discounting the annual cash flows and the equity reversion at the selected rate of 11.00% indicates a value of
$19,500,000. In this instance, the reversion figure contributes approximately 41% of the total value. Investors
surveyed for this assignment indicated they would prefer to have the cash flow contribute anywhere from 50% to
60%. Overall, the blend seems reasonable. The cash flow and pricing matrix are located on the following pages.
AMERICAN APPRAISAL ASSOCIATES, INC. INCOME CAPITALIZATION APPROACH PAGE
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PLANTATION GARDENS, PLANTATION, FLORIDA

DISCOUNTED CASH FLOW ANALYSIS

                                      PLANTATION GARDENS

                YEAR                  JAN-2004      JAN-2005      JAN-2006      JAN-2007      JAN-2008
            FISCAL YEAR                  1             2             3             4             5
---------------------------------------------------------------------------------------------------------
REVENUE
 Base Rent                           $3,634,800    $3,707,496    $3,781,646    $3,895,095    $4,011,948

 Vacancy                               $ 191,736      $ 122,347      $ 113,449      $ 116,853      $ 120,358
 Credit Loss                           $   72,696     $   74,150     $   75,633     $   77,902     $   80,239
 Concessions                           $        0     $        0     $        0     $        0     $        0
                                       ----------     ----------     ----------     ----------     ----------
  Subtotal                             $ 264,432      $ 196,497      $ 189,082      $ 194,755      $ 200,597

 Laundry Income                        $   46,500     $   47,430     $   48,379     $   49,830     $   51,325
 Garage Revenue                        $        0     $        0     $        0     $        0     $        0
 Other Misc. Revenue                   $ 167,400      $ 170,748      $ 174,163      $ 179,388      $ 184,769
                                       ----------     ----------     ----------     ----------     ----------
   Subtotal Other Income               $ 213,900      $ 218,178      $ 222,542      $ 229,218      $ 236,094

                                       ----------     ----------     ----------     ----------     ----------
EFFECTIVE GROSS INCOME                 $3,584,268     $3,729,177     $3,815,105     $3,929,558     $4,047,445

OPERATING EXPENSES:
 Taxes                                 $   385,020    $   396,571    $   408,468    $   420,722    $   433,343
 Insurance                             $   148,800    $   153,264    $   157,862    $   162,598    $   167,476
 Utilities                             $   312,480    $   321,854    $   331,510    $   341,455    $   351,699
 Repair & Maintenance                  $   241,800    $   249,054    $   256,526    $   264,221    $   272,148
 Cleaning                              $    66,960    $    68,969    $    71,038    $    73,169    $    75,364
 Landscaping                           $    46,500    $    47,895    $    49,332    $    50,812    $    52,336
 Security                              $    16,740    $    17,242    $    17,759    $    18,292    $    18,841
 Marketing & Leasing                   $    74,400    $    76,632    $    78,931    $    81,299    $    83,738
 General Administrative                $   316,200    $   325,686    $   335,457    $   345,520    $   355,886
 Management                            $   179,213    $   186,459    $   190,755    $   196,478    $   202,372
 Miscellaneous                         $         0    $         0    $         0    $         0    $         0

                                       ----------     ----------     ----------     ----------     ----------
TOTAL OPERATING EXPENSES               $1,788,113     $1,843,626     $1,897,637     $1,954,566     $2,013,203

 Reserves                              $    93,000    $    95,790    $    98,664    $   101,624    $   104,672

                                       ----------     ----------     ----------     ----------     ----------
NET OPERATING INCOME                   $1,703,155     $1,789,761     $1,818,804     $1,873,368     $1,929,569

 Operating Expense Ratio (% of EGI)           49.9%          49.4%          49.7%          49.7%          49.7%
 Operating Expense Per Unit            $     4,807    $     4,956    $     5,101    $     5,254    $     5,412

                YEAR                  JAN-2010      JAN-2011      JAN-2012      JAN-2013      JAN-2014
            FISCAL YEAR                  7             8             9             10            11
-------------------------------------------------------------------------------------------------------
REVENUE
 Base Rent                           $4,256,276    $4,383,964    $4,515,483    $4,650,947    $4,790,476

 Vacancy                               $ 255,377      $ 263,038      $ 270,929      $ 279,057      $ 287,429
 Credit Loss                           $   85,126     $   87,679     $   90,310     $   93,019     $   95,810
 Concessions                           $        0     $        0     $        0     $        0     $        0
                                       ----------     ----------     ----------     ----------     ----------
  Subtotal                             $ 340,502      $ 350,717      $ 361,239      $ 372,076      $ 383,238

 Laundry Income                        $   54,451     $   56,084     $   57,767     $   59,500     $   61,285
 Garage Revenue                        $        0     $        0     $        0     $        0     $        0
 Other Misc. Revenue                   $ 196,022      $ 201,903      $ 207,960      $ 214,198      $ 220,624
                                       ----------     ----------     ----------     ----------     ----------
   Subtotal Other Income               $ 250,472      $ 257,987      $ 265,726      $ 273,698      $ 281,909

                                       ----------     ----------     ----------     ----------     ----------
EFFECTIVE GROSS INCOME                 $4,166,246     $4,291,234     $4,419,971     $4,552,570     $4,689,147

OPERATING EXPENSES:
 Taxes                                 $   459,734    $   473,526    $   487,732    $   502,364    $   517,435
 Insurance                             $   177,675      $   183,005    $   188,495    $   194,150    $   199,975
 Utilities                             $   373,117      $   384,311    $   395,840    $   407,716    $   419,947
 Repair & Maintenance                  $   288,722      $   297,384    $   306,305    $   315,494    $   324,959
 Cleaning                              $    79,954      $    82,352    $    84,823    $    87,368    $    89,989
 Landscaping                           $    55,523      $    57,189    $    58,905    $    60,672    $    62,492
 Security                              $    19,988      $    20,588    $    21,206    $    21,842    $    22,497
 Marketing & Leasing                   $    88,837      $    91,503    $    94,248    $    97,075    $    99,987
 General Administrative                $   377,559      $   388,886    $   400,553    $   412,569    $   424,946
 Management                            $   208,312      $   214,562    $   220,999    $   227,628    $   234,457
 Miscellaneous                         $         0      $         0    $         0    $         0    $         0

                                       ----------       ----------     ----------     ----------     ----------
TOTAL OPERATING EXPENSES               $2,129,423       $2,193,306     $2,259,105     $2,326,878     $2,396,684

 Reserves                              $   111,047      $   114,378    $   117,810    $   121,344    $   124,984

                                       ----------       ----------     ----------     ----------     ----------
NET OPERATING INCOME                   $1,925,776       $1,983,550     $2,043,056     $2,104,348     $2,167,478

 Operating Expense Ratio (% of EGI)             51.1%          51.1%          51.1%          51.1%          51.1%
 Operating Expense Per Unit            $       5,724    $     5,896    $     6,073    $     6,255    $     6,443




           Estimated Stabilized NOI               $1,678,120     Sales Expense Rate        2.00%
           Months to Stabilized                            1     Discount Rate            11.00%
           Stabilized Occupancy                         94.0%    Terminal Cap Rate         9.25%




                                      "DCF" VALUE ANALYSIS

Gross Residual Sale Price        $23,432,197            Deferred Maintenance                    -$   280,000
  Less: Sales Expense            $   468,644            Add: Excess Land                         $         0
                                 -----------            Other Adjustments                        $         0
Net Residual Sale Price          $22,963,553                                                     -----------
PV of Reversion                  $ 8,087,407            Value Indicated By "DCF"                 $19,518,832
Add: NPV of NOI                  $11,711,425                                    Rounded          $19,500,000
                                 -----------
PV Total                         $19,798,832




                               "DCF" VALUE SENSITIVITY TABLE

                                                   DISCOUNT RATE
                         -------------------------------------------------------------------
   TOTAL VALUE            10.50%         10.75%        11.00%        11.25%        11.50%
   -----------------------------------------------------------------------------------------
                  8.75% $20,933,929    $20,593,735   $20,260,969   $19,935,444   $19,616,978
                  9.00% $20,685,474    $20,350,832   $20,023,482   $19,703,240   $19,389,928
   TERMINAL CAP   9.25% $20,450,449    $20,121,059   $19,798,832   $19,483,588   $19,175,151
       RATE       9.50% $20,227,794    $19,903,379   $19,586,005   $19,275,496   $18,971,678
                  9.75% $20,016,557    $19,696,862   $19,384,093   $19,078,075   $18,778,639
AMERICAN APPRAISAL ASSOCIATES, INC. INCOME CAPITALIZATION APPROACH PAGE
33
PLANTATION GARDENS, PLANTATION, FLORIDA

INCOME LOSS DURING LEASE-UP

The subject is currently near or at a stabilized condition. Therefore, there is no income loss during lease-up at the
subject property.

CONCESSIONS

Concessions have historically not been utilized at the subject property or in the subject's market. Therefore, no
adjustment was included for concessions.

DIRECT CAPITALIZATION METHOD

After having projected the income and expenses for the property, the next step in the valuation process is to
capitalize the net income into an estimate of value. The selected overall capitalization rate ("OAR") covers both
return on and return of capital. It is the overall rate of return an investor expects.

After considering the market transactions and the investor surveys, we previously conclude that an overall rate of
8.75% percent is applicable to the subject. The results of our direct capitalization analysis are as follows:
AMERICAN APPRAISAL ASSOCIATES, INC. INCOME CAPITALIZATION APPROACH PAGE
34
PLANTATION GARDENS, PLANTATION, FLORIDA

                                   PLANTATION GARDENS

                                                   TOTAL      PER SQ. FT.   PER UNIT   %OF EGI
                                                   -----      -----------   --------   -------
REVENUE
  Base Rent                                   $ 3,634,800      $11.12       $ 9,771

 Less: Vacancy & Collection Loss      8.00%   $    290,784     $ 0.89       $   782

 Plus: Other Income
  Laundry Income                              $    46,500      $ 0.14       $   125      1.31%
  Garage Revenue                              $         0      $ 0.00       $     0      0.00%
  Other Misc. Revenue                         $   167,400      $ 0.51       $   450      4.71%
                                              -----------      ------       -------     -----
   Subtotal Other Income                      $   213,900      $ 0.65       $   575      6.01%

EFFECTIVE GROSS INCOME                        $ 3,557,916      $10.89       $ 9,564

OPERATING EXPENSES:
  Taxes                                       $    385,020     $   1.18     $ 1,035    10.82%
  Insurance                                   $    148,800     $   0.46     $   400     4.18%
  Utilities                                   $    312,480     $   0.96     $   840     8.78%
  Repair & Maintenance                        $    241,800     $   0.74     $   650     6.80%
  Cleaning                                    $     66,960     $   0.20     $   180     1.88%
  Landscaping                                 $     46,500     $   0.14     $   125     1.31%
  Security                                    $     16,740     $   0.05     $    45     0.47%
  Marketing & Leasing                         $     74,400     $   0.23     $   200     2.09%
  General Administrative                      $    316,200     $   0.97     $   850     8.89%
  Management                          5.00%   $    177,896     $   0.54     $   478     5.00%
  Miscellaneous                               $          0     $   0.00     $     0     0.00%

TOTAL OPERATING EXPENSES                      $ 1,786,796      $ 5.47       $ 4,803    50.22%

 Reserves                                     $    93,000      $ 0.28       $   250     2.61%
                                              -----------      ------       -------    -----
NET OPERATING INCOME                          $ 1,678,120      $ 5.14       $ 4,511    47.17%
                                              ===========      ======       =======    =====

 "GOING IN" CAPITALIZATION RATE                       8.75%

 VALUE INDICATION                             $19,178,517      $58.69       $51,555

 DEFERRED MAINTENANCE                         ($   280,000)

 "AS IS" VALUE INDICATION
  (DIRECT CAPITALIZATION APPROACH)            $18,898,517

                       ROUNDED                $18,900,000      $57.83       $50,806
AMERICAN APPRAISAL ASSOCIATES, INC. INCOME CAPITALIZATION APPROACH PAGE
35
PLANTATION GARDENS, PLANTATION, FLORIDA

                      DIRECT CAPITALIZATION VALUE SENSITIVITY TABLE

                      CAP RATE      VALUE        ROUNDED     $/UNIT       $/SF
                      ----------------------------------------------------------
                      8.00%      $20,696,503   $20,700,000   $55,645   $   63.34
                      8.25%      $20,060,851   $20,100,000   $54,032   $   61.51
                      8.50%      $19,462,591   $19,500,000   $52,419   $   59.67
                      8.75%      $18,898,517   $18,900,000   $50,806   $   57.83
                      9.00%      $18,365,780   $18,400,000   $49,462   $   56.30
                      9.25%      $17,861,840   $17,900,000   $48,118   $   54.77
                      9.50%      $17,384,423   $17,400,000   $46,774   $   53.24




CONCLUSION BY THE DIRECT CAPITALIZATION METHOD

Applying the capitalization rate to our estimated NOI results in an estimated value of $18,900,000.

CORRELATION AND CONCLUSION BY THE INCOME APPROACH

The two methods used to estimate the market value of the subject property by the income approach resulted in
the following indications of value:

                               Discounted Cash Flow Analysis         $19,500,000
                               Direct Capitalization Method          $18,900,000




Giving consideration to the indicated values provided by both techniques, we have concluded the estimated value
by the income capitalization approach to be $19,000,000.
AMERICAN APPRAISAL ASSOCIATES, INC. RECONCILIATION AND CONCLUSION PAGE
36
PLANTATION GARDENS, PLANTATION, FLORIDA

                                 RECONCILIATION AND CONCLUSION

This appraisal was made to express an opinion as of the Market Value of the fee simple estate in the property.

AS IS MARKET VALUE OF THE FEE SIMPLE ESTATE

                             Cost Approach                              Not Utilized
                             Sales Comparison Approach                  $19,100,000
                             Income Approach                            $19,000,000
                             Reconciled Value                           $19,000,000




The Income Capitalization Method is considered a reliable indicator of value. Income and expenses were
estimated and projected based on historical operating statements and market oriented expenses. This method is
primarily used by investors in their underwriting analysis. Furthermore, there was good support for an overall rate
in the Direct Capitalization Method.

The Sales Comparison Approach to value supported the value conclusion by the Income Approach and was
given secondary consideration. Investment-grade, income-producing properties such as the subject are not
typically traded based on cost. Therefore, the Cost Approach has not been considered in our valuation.

FINAL VALUE - FEE SIMPLE ESTATE

Based on the investigation and premise outlined, it is our opinion that as of December 11, 2003 the market value
of the fee simple estate in the property is:

$19,000,000
AMERICAN APPRAISAL ASSOCIATES, INC. ADDENDA
PLANTATION GARDENS, PLANTATION, FLORIDA

                               ADDENDA
AMERICAN APPRAISAL ASSOCIATES, INC. EXHIBIT A
PLANTATION GARDENS, PLANTATION, FLORIDA

                                EXHIBIT A
                          SUBJECT PHOTOGRAPHS
AMERICAN APPRAISAL ASSOCIATES, INC.                                    EXHIBIT A
PLANTATION GARDENS, PLANTATION, FLORIDA

                              SUBJECT PHOTOGRAPHS

                [PICTURE]                                [PICTURE]

    EXTERIOR - APARTMENT ENTRANCE         EXTERIOR - 4 - STORY APARTMENT BUILDING

                [PICTURE]                                [PICTURE]

     EXTERIOR - SITE IMPROVEMENTS             EXTERIOR - TYPICAL BUILDINGS

                [PICTURE]                                [PICTURE]

EXTERIOR - TYPICAL BUILDING NEEDING PAINT           EXTERIOR - CLUBHOUSE
AMERICAN APPRAISAL ASSOCIATES, INC.                                       EXHIBIT A
PLANTATION GARDENS, PLANTATION, FLORIDA

                                SUBJECT PHOTOGRAPHS

          [PICTURE]                                           [PICTURE]

       EXTERIOR - POOL                           INTERIOR - LIVING AREA OF MODEL

          [PICTURE]                                           [PICTURE]

  INTERIOR - KITCHEN OF MODEL                         INTERIOR - BEDROOM OF MODEL

          [PICTURE]                                           [PICTURE]

INTERIOR - VACANT UNIT LIVING AREA                INTERIOR - VACANT UNIT KITCHEN
AMERICAN APPRAISAL ASSOCIATES, INC. EXHIBIT B
PLANTATION GARDENS, PLANTATION, FLORIDA

                              EXHIBIT B
                     SUMMARY OF RENT COMPARABLES
                    AND PHOTOGRAPH OF COMPARABLES
AMERICAN APPRAISAL ASSOCIATES, INC. EXHIBIT B
PLANTATION GARDENS, PLANTATION, FLORIDA

PHOTOGRAPHS OF COMPARABLE SALE PROPERTIES

         COMPARABLE I-1              COMPARABLE I-2            COMPARABLE I-3

      TOWNHOMES OF PLANTATION       CIMARRON APARTMENTS          SPRING CREST
         4790 NW 9th Court        850 E. Commercial Blvd   4245 N. University Drive
        Plantation, Florida            Oakland Park           Plantation, Florida

           [PICTURE]                    [PICTURE]                 [PICTURE]

          COMPARABLE I-4             COMPARABLE I-5

      ROYAL SHERIDAN APARTMENTS   BOARDWALK AT INVERRARY
        4200 Sheridan Street         2915 NW 60th Ave
         Hollywood, Florida          Sunrise, Florida

             [PICTURE]                  [PICTURE]
AMERICAN APPRAISAL ASSOCIATES, INC. EXHIBIT B
PLANTATION GARDENS, PLANTATION, FLORIDA

SUMMARY OF COMPARABLE RENTAL PROPERTIES

                                                                                                     COMPARABLE
         DESCRIPTION                             SUBJECT                                                R - 1
-------------------------------   ------------------------------------------         ---------------------------
 Property Name                    Plantation Gardens                                 Southern Pointe
 Management Company               AIMCO                                              Kennedy-Wilson
LOCATION:
 Address                          7616 NW 5th Street                                 8080 NW 10 Court
 City, State                      Plantation, Florida                                Plantation, FL
 County                           Broward                                            Broward
 Proximity to Subject                                                                0.5 mile west of the subjec
PHYSICAL CHARACTERISTICS:
 Net Rentable Area (SF)           326,800                                            NA
 Year Built                       1971                                               1985
 Effective Age                    20                                                 18
 Building Structure Type          Wood/Masonry/Stucco                                Wood/Masonry/Stucco
 Parking Type (Gr., Cov., etc.)   Open                                               Open
 Number of Units                  372                                                300
 Unit Mix:                                Type             Unit   Qty.    Mo. Rent         Type               Unit
                                   1 1Bdrm/1Ba-1A10         750    42      $719       2 1 Bdrm/1Ba              862
                                   2 2Bdrm/2Ba-2A20         850   182      $763       2 2 Bdrm/2Ba              950
                                   3 2Bdrm/2Ba-2B20         950   148      $816       2 2 Bdrm/2Ba            1,111

 Average Unit Size (SF)           878
 Unit Breakdown:                    Efficiency               2-Bedroom                  Efficiency              2-Be
                                    1-Bedroom                3-Bedroom                  1-Bedroom               3-Be
CONDITION:                        Average                                            Good
APPEAL:                           Average                                            Good
AMENITIES:
 Unit Amenities                     X   Attach. Garage       X    Vaulted Ceiling          Attach. Garage       X     V
                                    X   Balcony              X    W/D Connect.         X   Balcony              X     W
                                        Fireplace                                          Fireplace
                                    X   Cable TV Ready                                 X   Cable TV Ready
 Project Amenities                  X   Swimming Pool                                  X   Swimming Pool
                                    X   Spa/Jacuzzi               Car Wash             X   Spa/Jacuzzi                C
                                    X   Basketball Court     X    BBQ Equipment            Basketball Court           B
                                        Volleyball Court          Theater Room             Volleyball Court           T
                                        Sand Volley Ball     X    Meeting Hall             Sand Volley Ball     X     M
                                    X   Tennis Court              Secured Parking          Tennis Court               S
                                        Racquet Ball         X    Laundry Room             Racquet Ball               L
                                        Jogging Track        X    Business Office          Jogging Track        X     B
                                    X   Gym Room                                           Gym Room

OCCUPANCY:                        97%                                                97%
LEASING DATA:
 Available Leasing Terms          7 to 12                                            12 months
 Concessions                      1-2 months free                                    $500 off 1BD, $600 off 2D,
 Pet Deposit                      $250                                               $450 deposit, $250 non-refu
 Utilities Paid by Tenant:          X Electric           X        Natural Gas          X Electric           X N
                                    X Water                       Trash                X Water                  T
 Confirmation                     Brenda Williams, Manager                           Leasing Agent
 Telephone Number                 954-473-5050                                       1-866-738-8578
NOTES:                                                                               This complex located with t
                                                                                     Community, a good quality p
                                                                                     located northwest of the su

 COMPARISON TO SUBJECT:                                                              Superior

                                                  COMPARABLE                                          COMPARABLE
         DESCRIPTION                                R - 2                                               R - 3
-----------------------------     -------------------------------------------         --------------------------
 Property Name                    Carlyle Club                                        Jacaranda Village
 Management Company               ZOM Residential Services                            Scully Company
LOCATION:
 Address                          781 N. Pine Island                                  461 NW 87 Road
 City, State                      Plantation, FL                                      Plantation, FL
 County                           Broward                                             Broward
 Proximity to Subject             1 mile northwest of the subject                     2 miles northwest of the s
PHYSICAL CHARACTERISTICS:
 Net Rentable Area (SF)           NA                                                  N/A
 Year Built                       1997                                                1987
 Effective Age                    6                                                   16
 Building Structure Type          Wood/Masonry/Stucco                                 Wood/Masonry/Stucco
 Parking Type (Gr., Cov., etc.)    Some garages, carports                                        None
 Number of Units                   150                                                           NA
 Unit Mix:                               Type           Unit                  Qty.        Mo.          Type                 Unit
                                    1 1Bdrm/1Ba           760                           $ 930     1 1Bdrm/1Ba                800
                                    2 2Bdrm/1Ba           963                           $1,050    3 2Bdrm/2Ba              1,102
                                    3 2Bdrm/2Ba         1,093                           $1,150

 Average Unit Size (SF)
 Unit Breakdown:                     Efficiency                      2-Bedroom                     Efficiency                2-B
                                     1-Bedroom                       3-Bedroom                     1-Bedroom                 3-B
CONDITION:                         Good                                                          Average
APPEAL:                            Good                                                          Average
AMENITIES:
 Unit Amenities                         X   Attach. Garage           X   Vaulted Ceiling                Attach. Garage       X
                                        X   Balcony                  X   W/D Connect.              X    Balcony              X
                                            Fireplace                                                   Fireplace
                                        X   Cable TV Ready                                         X    Cable TV Ready
 Project Amenities                      X   Swimming Pool                                          X    Swimming Pool
                                        X   Spa/Jacuzzi              X   Car Wash                       Spa/Jacuzzi
                                            Basketball Court             BBQ Equipment             X    Basketball Court
                                            Volleyball Court             Theater Room                   Volleyball Court
                                            Sand Volley Ball         X   Meeting Hall                   Sand Volley Ball     X
                                        X   Tennis Court                 Secured Parking           X    Tennis Court
                                            Racquet Ball                 Laundry Room                   Racquet Ball         X
                                            Jogging Track            X   Business Office                Jogging Track        X
                                        X   Gym Room                                               X    Gym Room

OCCUPANCY:                         94%                                                           90%
LEASING DATA:
 Available Leasing Terms           7 to 12 months                                                12 months
 Concessions                       $750 off 1 BD, $1,000 off 3 BD                                NA
 Pet Deposit                       $500 deposit; $300 non-refundable                             $150 deposit
 Utilities Paid by Tenant:           X Electric           X Natural Gas                             X Electric               X
                                     X Water                 Trash                                  X Water
 Confirmation                      Susan, Leasing Agent                                          Leasing Agent
 Telephone Number                  1-866-674-1291                                                1-866-744-3710
NOTES:




 COMPARISON TO SUBJECT:            Superior                                                      Superior

                                                 COMPARABLE
         DESCRIPTION                               R - 4
-----------------------------     ------------------------------------------
 Property Name                    Lakepointe at Jacaranda
 Management Company               Lincoln Property Company
LOCATION:
 Address                          1171 Lake Pointe Landing
 City, State                      Plantation, FL
 County                           Broward
 Proximity to Subject             0.5 mile west of subject
PHYSICAL CHARACTERISTICS:
 Net Rentable Area (SF)           N/A
 Year Built                       1986
 Effective Age                    17
 Building Structure Type          Wood/Masonry/Stucco
 Parking Type (Gr., Cov., etc.    Carports available
 Number of Units                  246
 Unit Mix:                             Type                    Unit        Qty.        Mo.
                                   1 1Bdrm/1Ba                   810                 $ 795
                                   2 2Bdrm/2Ba                 1,035                 $ 899
                                   3 2Bdrm/2Ba                 1,100                 $1,046

 Average Unit Size (SF)
 Unit Breakdown:                     Efficiency                  2-Bedroom
                                     1-Bedroom                   3-Bedroom
CONDITION:                        Fair
APPEAL:                           Excellent
AMENITIES:
 Unit Amenities                             Attach. Garage       X       Vaulted Ceiling
                                    X       Balcony              X       W/D Connect.
                                            Fireplace
                                    X       Cable TV Ready
 Project Amenities                  X       Swimming Pool
                                    X       Spa/Jacuzzi                  Car Wash
                                            Basketball Court             BBQ Equipment
                                            Volleyball Court             Theater Room
                                            Sand Volley Ball     X       Meeting Hall
                                    X       Tennis Court                 Secured Parking
                                   Racquet Ball    X   Laundry Room
                                   Jogging Track   X   Business Office
                                   Gym Room

OCCUPANCY:                   95%
LEASING DATA:
 Available Leasing Terms     12 months
 Concessions                 $500 off up to 1 month free
 Pet Deposit                 N/A
 Utilities Paid by Tenant:     X Electric           X Natural Gas
                               X Water                 Trash
 Confirmation                Leasing Agent
 Telephone Number            321-777-7070
NOTES:




 COMPARISON TO SUBJECT:      Superior
AMERICAN APPRAISAL ASSOCIATES, INC. EXHIBIT B
PLANTATION GARDENS, PLANTATION, FLORIDA

              PHOTOGRAPHS OF COMPARABLE RENT PROPERTIES

            COMPARABLE R-1            COMPARABLE R-2    COMPARABLE R-3

           SOUTHERN POINTE           CARLYLE CLUB      JACARANDA VILLAGE
           8080 NW 10 Court       781 N. Pine Island    461 NW 87 Road
            Plantation, FL          Plantation, FL      Plantation, FL

              [PICTURE]                [PICTURE]         [PICTURE]

               COMPARABLE R-4

           LAKEPOINTE AT JACARANDA
           1171 Lake Pointe Landing       N/A
                Plantation, FL

                 [PICTURE]
AMERICAN APPRAISAL ASSOCIATES, INC. EXHIBIT C
PLANTATION GARDENS, PLANTATION, FLORIDA

                               EXHIBIT C
                  ASSUMPTIONS AND LIMITING CONDITIONS

                                 (3 PAGES)
AMERICAN APPRAISAL ASSOCIATES, INC. EXHIBIT C
PLANTATION GARDENS, PLANTATION, FLORIDA

No responsibility is assumed for matters legal in nature. No investigation has been made of the title to or any
liabilities against the property appraised. In this appraisal, it is presumed that, unless otherwise noted, the owner's
claim is valid, the property rights are good and marketable, and there are no encumbrances which cannot be
cleared through normal processes.

To the best of our knowledge, all data set forth in this report are true and accurate. Although gathered from
reliable sources, no guarantee is made nor liability assumed for the accuracy of any data, opinions, or estimates
identified as being furnished by others which have been used in formulating this analysis.

Land areas and descriptions used in this appraisal were obtained from public records and have not been verified
by legal counsel or a licensed surveyor.

No soil analysis or geological studies were ordered or made in conjunction with this report, nor were any water,
oil, gas, or other subsurface mineral and use rights or conditions investigated.

Substances such as asbestos, urea-formaldehyde foam insulation, other chemicals, toxic wastes, or other
potentially hazardous materials could, if present, adversely affect the value of the property. Unless otherwise
stated in this report, the existence of hazardous substance, which may or may not be present on or in the
property, was not considered by the appraiser in the development of the conclusion of value. The stated value
estimate is predicated on the assumption that there is no material on or in the property that would cause such a
loss in value. No responsibility is assumed for any such conditions, and the client has been advised that the
appraiser is not qualified to detect such substances, quantify the impact on values, or develop the remedial cost.

No environmental impact study has been ordered or made. Full compliance with applicable federal, state, and
local environmental regulations and laws is assumed unless otherwise stated, defined, and considered in the
report. It is also assumed that all required licenses, consents, or other legislative or administrative authority from
any local, state, or national government or private entity organization either have been or can be obtained or
renewed for any use which the report covers.
AMERICAN APPRAISAL ASSOCIATES, INC. EXHIBIT C
PLANTATION GARDENS, PLANTATION, FLORIDA

It is assumed that all applicable zoning and use regulations and restrictions have been complied with unless a
nonconformity has been stated, defined, and considered in the appraisal report. Further, it is assumed that the
utilization of the land and improvements is within the boundaries of the property described and that no
encroachment or trespass exists unless noted in the report.

The Americans with Disabilities Act ("ADA") became effective January 26, 1992. We have not made a specific
compliance survey and analysis of this property to determine whether or not it is in conformity with the various
detailed requirements of the ADA. It is possible that a compliance survey of the property together with a detailed
analysis of the requirements of the ADA could reveal that the property is not in compliance with one or more of
the requirements of the act. If so, this fact could have a negative effect on the value of the property. Since we
have no direct evidence relating to this issue, we did not consider the possible noncompliance with the
requirements of ADA in estimating the value of the property.

We have made a physical inspection of the property and noted visible physical defects, if any, in our report. This
inspection was made by individuals generally familiar with real estate and building construction. However, these
individuals are not architectural or structural engineers who would have detailed knowledge of building design and
structural integrity. Accordingly, we do not opine on, nor are we responsible for, the structural integrity of the
property including its conformity to specific governmental code requirements, such as fire, building and safety,
earthquake, and occupancy, or any physical defects which were not readily apparent to the appraiser during the
inspection.

The value or values presented in this report are based upon the premises outlined herein and are valid only for the
purpose or purposes stated.

The date of value to which the conclusions and opinions expressed apply is set forth in this report. The value
opinion herein rendered is based on the status of the national business economy and the purchasing power of the
U.S. dollar as of that date.

Testimony or attendance in court or at any other hearing is not required by reason of this appraisal unless
arrangements are previously made within a reasonable time in advance for
AMERICAN APPRAISAL ASSOCIATES, INC. EXHIBIT C
PLANTATION GARDENS, PLANTATION, FLORIDA

such testimony, and then such testimony shall be at American Appraisal Associates, Inc.'s, prevailing per diem for
the individuals involved.

Possession of this report or any copy thereof does not carry with it the right of publication. No portion of this
report (especially any conclusion to use, the identity of the appraiser or the firm with which the appraiser is
connected, or any reference to the Appraisal Institute or the designations awarded by this organization) shall be
disseminated to the public through prospectus, advertising, public relations, news, or any other means of
communication without the written consent and approval of American Appraisal Associates, Inc.
AMERICAN APPRAISAL ASSOCIATES, INC. EXHIBIT D
PLANTATION GARDENS, PLANTATION, FLORIDA

                                 EXHIBIT D
                         CERTIFICATE OF APPRAISER

                                 (1 PAGE)
AMERICAN APPRAISAL ASSOCIATES, INC. EXHIBIT E
PLANTATION GARDENS, PLANTATION, FLORIDA

                                       CERTIFICATE OF APPRAISER

I certify that, to the best of my knowledge and belief:

The statements of fact contained in this report are true and correct.

The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting
conditions, and represent the unbiased professional analyses, opinions, and conclusions of American Appraisal
Associates, Inc.

American Appraisal Associates, Inc. and I personally, have no present or prospective interest in the property that
is the subject of this report and have no personal interest or bias with respect to the parties involved.

Compensation for American Appraisal Associates, Inc. is not contingent on an action or event resulting from the
analyses, opinions, or conclusions in, or the use of, this report.

The analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with
the Uniform Standards of Professional Appraisal Practice and the Principles of Appraisal Practice and Code of
Ethics of the American Society of Appraisers.

The analysis, opinions, and conclusions were developed, and this report has been prepared, in conformity with
the Uniform Standards of Professional Appraisal Practice.

I personally did not inspect the subject property. Kim Cook provided significant real property appraisal
assistance in the preparation of this report.

The American Society of Appraisers has a mandatory recertification program for all of its senior members. I am
in compliance with the requirements of that program.

                                              -s- Edward Zenkovich

Edward Zenkovich, ASA Managing Principal, Real Estate Group State of Florida, Certified General Appraiser,
#0001259
AMERICAN APPRAISAL ASSOCIATES, INC. EXHIBIT E
PLANTATION GARDENS, PLANTATION, FLORIDA

                                EXHIBIT E
                       QUALIFICATIONS OF APPRAISER

                                 (5 PAGES)
AMERICAN APPRAISAL ASSOCIATES, INC.                                  EXHIBIT E
PLANTATION GARDENS, PLANTATION, FLORIDA

                                          EDWARD J. ZENKOVICH, ASA




            SENIOR VICE PRESIDENT AND MANAGING PRINCIPAL,
                          REAL ESTATE GROUP

POSITION                  Edward J. Zenkovich serves as Senior Vice President
                          and Managing Principal of the Atlanta Real Estate
                          Group of American Appraisal Associates, Inc. ("AAA").

EXPERIENCE

Valuation                 In the Public Sector Services Group of AAA, Mr.
                          Zenkovich assisted clients with the establishment of
                          fixed asset records for insurance, property control,
                          and property accounting purposes for the appraisal of
                          buildings, land improvements, and machinery and
                          equipment. Mr. Zenkovich was also responsible for the
                          planning and management of large multiple-location
                          engagements.

                          In the Real Estate Valuation Group, Mr. Zenkovich
                          completed valuations of various types of real estate
                          including commercial, investment, manufacturing,
                          retail, and warehouse properties.

                          As a member of the Real Estate Group, Mr. Zenkovich
                          specialized in the valuation of investment real
                          estate. Property interests he has appraised include
                          fee simple, leased fee, and leasehold. He has
                          completed appraisals for financial reporting,
                          financing, litigation support, portfolio valuation,
                          purchase, purchase price allocation, and sale.
                          Specific properties he has appraised include
                          apartments, hotels, land developments, nursing homes,
                          office buildings, regional and community shopping
                          centers, and warehouses. He has additional appraisal
                          experience in heavy industrial property valuations,
                          as well as investment portfolios for major
                          institutional clients.
AMERICAN APPRAISAL ASSOCIATES, INC.                                  EXHIBIT E
PLANTATION GARDENS, PLANTATION, FLORIDA

Court                     Mr. Zenkovich is a qualified expert witness of the
                          U.S. Bankruptcy Court, Western District.

Business                  Mr. Zenkovich joined AAA in 1980 as an assistant
                          appraiser in the Public Sector Services Group,
                          advancing to staff appraiser the following year. In
                          1985, he transferred to the Real Estate Valuation
                          Group and was promoted to senior appraiser in 1988.
                          Mr. Zenkovich was appointed area manager of the Real
                          Estate Group's Tampa, Florida, office and was
                          promoted to principal in 1994. He was named a Vice
                          President of AAA in 1995 and a Managing Principal in
                          1997. From 2001 to 2003, Mr. Zenkovich was the
                          national director of AAA's Real Estate Group. He
                          currently serves as Managing Principal of the Real
                          Estate Group in Atlanta, Georgia.

EDUCATION                 University of Wisconsin - Milwaukee
                           Bachelor of Business Administration - Real Estate
                          and Urban
                          Development

STATE CERTIFICATIONS      State of Colorado, Certified General Appraiser,
                          #CG01325475

                          State of Florida, Certified General Appraiser,
                          #RZ0001259

                          State of Florida, Licensed Real Estate Broker,
                          #BK0468540

                          State of Georgia, Certified General Real Property
                          Appraiser, #005263

                          State of Minnesota, Certified General Real Property
                          Appraiser, #4003673

PROFESSIONAL              American Society of Appraisers, Accredited Senior
AFFILIATIONS              Appraiser
                           ASA Designation - Urban Real Property
                          Institute of Property Taxation, Candidate
AMERICAN APPRAISAL ASSOCIATES, INC. EXHIBIT E
PLANTATION GARDENS, PLANTATION, FLORIDA

       VALUATION AND       American Society of Appraisers
       SPECIAL COURSES     Introduction to Business Valuation, Part One
                           Appraisal Institute
                            Basic Valuation Procedures
                            Capitalization Theory and Techniques, Parts A and B
                            Case Studies in Real Estate Valuation
                            Real Estate Appraisal Principles
                            Standards of Professional Practice, Parts A and B
                            Valuation Analysis and Report Writing
AMERICAN APPRAISAL ASSOCIATES, INC.
PLANTATION GARDENS, PLANTATION, FLORIDA

                       GENERAL SERVICE CONDITIONS
AMERICAN APPRAISAL ASSOCIATES, INC.
PLANTATION GARDENS, PLANTATION, FLORIDA

                                    GENERAL SERVICE CONDITIONS

The services(s) provided by AAA will be performed in accordance with professional appraisal standards. Our
compensation is not contingent in any way upon our conclusions of value. We assume, without independent
verification, the accuracy of all data provided to us. We will act as an independent contractor and reserve the
right to use subcontractors. All files, workpapers or documents developed by us during the course of the
engagement will be our property. We will retain this data for at least five years.

Our report is to be used only for the specific purpose stated herein; and any other use is invalid. No reliance may
be made by any third party without our prior written consent. You may show our report in its entirety to those
third parties who need to review the information contained herein. No one should rely on our report as a
substitute for their own due diligence. We understand that our reports will be described in public tender offer
documents distributed to limited partners. We reserve the right to review the public tender offer documents prior
to their issuance to confirm that disclosures of facts from the current appraisals are accurate. No reference to our
name or our report, in whole or in part, in any other SEC filing or private placement memorandum you prepare
and/or distribute to third parties may be made without our prior written consent.

The Tender Offer Partnerships, as that term is defined in the Settlement Agreement, agree to indemnify and hold
us harmless against and from any and all losses, claims, actions, damages, expenses or liabilities, including
reasonable attorneys' fees, to which we may become subject in connection with this engagement except where
such losses, claims, actions, damages, expenses or liabilities, including reasonable attorney's fees, arise or result
from AAA's misconduct, bad faith or negligence. Co-Clients will not be liable for any of our acts or omissions.

AAA is an equal opportunity employer.
                 REGENCY OAKS
              200 MALTESE CIRCLE
               FERN PARK, FLORIDA

                MARKET VALUE -
               FEE SIMPLE ESTATE

             AS OF DECEMBER 9, 2003

                 PREPARED FOR:

APARTMENT INVESTMENT AND MANAGEMENT COMPANY
                   (AIMCO)

C/O LINER YANKELEVITZ SUNSHINE & REGENSTREIF LLP

                       &

      LIEFF CABRASER HEIMANN & BERNSTEIN
           ON BEHALF OF NUANES, ET. AL.

    [AMERICAN APPRAISAL ASSOCIATES(R) LOGO]
UNITED STATES                                                                               INTERNATIONAL
Atlanta             Milwaukee                                                               Brazil                    Mexico
Boston              Minneapolis         [AMERICAN APPRAISAL ASSOCIATES(R) LOGO]             Canada                    Morocco
Buffalo             New Orleans                                                             China                     Peru
Charlotte           New York                   9441 LBJ Freeway Suite 114                   Croatia                   Philippin
Chicago             Oak Lawn                      Dallas, Texas 75243                       Czech Republic            Poland
Cincinnati          Philadelphia                                                            England                   Portugal
Dallas              Pittsburg                  Telephone: (972) 994-9100                    Germany                   Russia
Denver              Princeton                  Fax:       (972) 994-0516                    Greece                    Spain
Detroit             Schaumburg                                                              Hong Kong                 Taiwan
Houston             St. Louis                                                               Hungary                   Thailand
Irvine              San Francisco                                                           Italy                     Turkey
Jacksonville        Seattle                                                                 Japan                     Venezuela
Los Angeles




                                              DECEMBER 22, 2003

Apartment Investment and Management
Company ("AIMCO") c/o
Mr. Steven A. Velkei, Esq.
Liner Yankelevitz Sunshine & Regenstreif LLP 1100 Glendon Avenue, 14th Floor
Los Angeles, California 90024-3503

Nuanes, et al.( "Plaintiffs ") c/o
Ms. Joy Kruse
Lieff Cabraser Heimann & Bernstein
Embarcadero Center West
275 Battery Street, 30th Floor
San Francisco, California 94111

RE: REGENCY OAKS
200 MALTESE CIRCLE

                              FERN PARK, SEMINOLE COUNTY, FLORIDA

In accordance with your authorization, we have completed the appraisal of the above-referenced property. This
complete appraisal is intended to report our analysis and conclusions in a summary format.

The subject property consists of an apartment project having 343 units with a total of 342,080 square feet of
rentable area. The improvements were built in 1969. The improvements are situated on 20 acres. Overall, the
improvements are in average condition. As of the date of this appraisal, the subject property is 92% occupied.

It is our understanding the appraisal will be used by the clients to assist the San Mateo Superior Court in the
settlement of litigation between the above mentioned clients. The appraisal is intended to conform to the Uniform
Standards of Professional Appraisal Practice ("USPAP") as promulgated by the Appraisal Standards Board of
the Appraisal Foundation and the Code of Professional Ethics and Standards of Professional Practice of the
Appraisal Institute. The appraisal is presented in a summary report, and the Departure Provision of USPAP has
not been invoked in this appraisal. It is entirely inappropriate to use this value conclusion or the report for any
purpose other than the one stated.
AMERICAN APPRAISAL ASSOCIATES, INC. LETTER OF TRANSMITTAL PAGE 2
REGENCY OAKS, FERN PARK, FLORIDA

The opinions expressed in this appraisal cover letter can only be completely understood by reading the narrative
report, addenda, and other data, which is attached. The appraisal is subject to the attached general assumptions
and limiting conditions and general service conditions.

As a result of our investigation, it is our opinion that the fee simple market value of the subject, effective
December 9, 2003 is:

                                                     ($8,800,000)

                                        Respectfully submitted,
                               AMERICAN APPRAISAL ASSOCIATES, INC.

                                                      -s- Frank A. Fehribach
                                                      -----------------------------
               December 22, 2003                      Frank A. Fehribach, MAI
               #053272                                Managing Principal, Real Estate Group
                                                      Texas State Certified General Real Estate
                                                      Appraiser, TX-1323954-G

               Report By:
               Alice MacQueen




Florida Certified General Real Estate Appraiser, #RZ0002202
AMERICAN APPRAISAL ASSOCIATES, INC. TABLE OF CONTENTS PAGE 3
REGENCY OAKS, FERN PARK, FLORIDA

                                        TABLE OF CONTENTS

Cover
Letter of Transmittal
Table of Contents

                                             APPRAISAL DATA

          Executive Summary .........................................................          4
          Introduction ..............................................................          9
          Area Analysis .............................................................         11
          Market Analysis ...........................................................         14
          Site Analysis .............................................................         15
          Improvement Analysis ......................................................         15
          Highest and Best Use ......................................................         16

                                               VALUATION

          Valuation Procedure .......................................................         17
          Sales Comparison Approach .................................................         19
          Income Capitalization Approach ............................................         25
          Reconciliation and Conclusion .............................................         35




                                              ADDENDA

Exhibit A - Photographs of Subject Property Exhibit B - Summary of Rent Comparables and Photograph of
Comparables Exhibit C - Assumptions and Limiting Conditions Exhibit D - Certificate of Appraiser
Exhibit E - Qualifications
General Service Conditions
AMERICAN APPRAISAL ASSOCIATES, INC. EXECUTIVE SUMMARY PAGE 4
REGENCY OAKS, FERN PARK, FLORIDA

                                 EXECUTIVE SUMMARY

                           PART ONE - PROPERTY DESCRIPTION

         PROPERTY NAME:                  Regency Oaks
         LOCATION:                       200 Maltese Circle
                                         Fern Park, Florida

         INTENDED USE OF ASSIGNMENT:     Court Settlement
         PURPOSE OF APPRAISAL:           "As Is" Market Value of the Fee Simple Estate
         INTEREST APPRAISED:             Fee simple estate

         DATE OF VALUE:                  December 9, 2003
         DATE OF REPORT:                 December 22, 2003




PHYSICAL DESCRIPTION - SITE & IMPROVEMENTS:
SITE:

         Size:                         20 acres, or 871,200 square feet
         Assessor Parcel No.:          20-21-30-300-001J-0000; 20-21-30-300-001K-0000
         Floodplain:                   Community Panel No. 12117C 0140 E (April 17, 1995)
                                       Flood Zone X, an area outside the floodplain.
         Zoning:                       R-3 (Residential Multifamily)

      BUILDING:

         No. of Units:                 343 Units
         Total NRA:                    342,080 Square Feet
         Average Unit Size:            997 Square Feet
         Apartment Density:            17.2 units per acre
         Year Built:                   1969




UNIT MIX AND MARKET RENT:

                           GROSS RENTAL INCOME PROJECTION

                                        Market Rent
                             Square ----------------     Monthly      Annual
              Unit Type       Feet   Per Unit Per SF     Income       Income
              ----------------------------------------------------------------
              Studio            589    $480    $0.81    $ 15,360    $ 184,320
              1Br/1Ba           719    $500    $0.70    $ 46,500    $ 558,000
              2Br/1.5Ba         984    $620    $0.63    $ 69,440    $ 833,280
              2Br/2Ba         1,061    $630    $0.59    $ 35,910    $ 430,920
              2Br/2.5Ba       1,800    $930    $0.52    $ 23,250    $ 279,000
              3Br/2Ba         1,320    $840    $0.64    $ 10,080    $ 120,960
              3Br/2.5Ba       2,070    $950    $0.46    $ 11,400    $ 136,800
                                                        --------    ----------
                                               Total    $211,940    $2,543,280
                                                        ========    ==========




OCCUPANCY: 92%
ECONOMIC LIFE: 45 Years
AMERICAN APPRAISAL ASSOCIATES, INC. EXECUTIVE SUMMARY PAGE 5
REGENCY OAKS, FERN PARK, FLORIDA

EFFECTIVE AGE: 25 Years
REMAINING ECONOMIC LIFE: 20 Years

SUBJECT PHOTOGRAPHS AND LOCATION MAP:

                          SUBJECT PHOTOGRAPHS

                            [PICTURE] [PICTURE]

APARTMENT BUILDING - FRONT VIEW APARTMENT BUILDING - SIDE VIEW

                                AREA MAP

                                    [MAP]
AMERICAN APPRAISAL ASSOCIATES, INC. EXECUTIVE SUMMARY PAGE 6
REGENCY OAKS, FERN PARK, FLORIDA

                             NEIGHBORHOOD MAP

                                    [MAP]

HIGHEST AND BEST USE:

        As Vacant:            Hold for future multi-family development
        As Improved:          Continuation as its current use

      METHOD OF VALUATION:    In this instance, the Sales Comparison and Income
                              Approaches to value were utilized.
AMERICAN APPRAISAL ASSOCIATES, INC. EXECUTIVE SUMMARY PAGE 7
REGENCY OAKS, FERN PARK, FLORIDA

                                PART TWO - ECONOMIC INDICATORS

INCOME CAPITALIZATION APPROACH

  DIRECT CAPITALIZATION                                 Amount                 $/Unit
  ---------------------                                 ------                 ------
  Potential Rental Income                         $2,543,280               $7,415
  Effective Gross Income                          $2,380,470               $6,940
  Operating Expenses                              $1,338,491               $3,902              56.2% of EGI
  Net Operating Income:                           $ 870,478                $2,538

  Capitalization Rate                                   9.75%
  DIRECT CAPITALIZATION VALUE                     $8,900,000 *             $25,948 / UNIT

  DISCOUNTED CASH FLOW ANALYSIS:
  Holding Period                                  10 years
  2002 Economic Vacancy                           23%
  Stabilized Vacancy & Collection Loss:           18%
  Lease-up / Stabilization Period                 N/A
  Terminal Capitalization Rate                    10.25%
  Discount Rate                                   12.00%
  Selling Costs                                   2.00%
  Growth Rates:
     Income                                       2.50%
     Expenses:                                    3.00%
  DISCOUNTED CASH FLOW VALUE                      $8,700,000 *             $25,364 / UNIT

  RECONCILED INCOME CAPITALIZATION VALUE          $8,800,000               $25,656 / UNIT




SALES COMPARISON APPROACH

            PRICE PER UNIT:
               Range of Sales $/Unit (Unadjusted)          $34,797 to $43,000
               Range of Sales $/Unit (Adjusted)            $26,268 to $29,861
            VALUE INDICATION - PRICE PER UNIT              $9,600,000 *             $27,988 / UNIT

            EGIM ANALYSIS
               Range of EGIMs from Improved Sales          5.30 to 5.84
               Selected EGIM for Subject                   4.00
               Subject's Projected EGI                     $2,380,470
            EGIM ANALYSIS CONCLUSION                       $9,500,000 *             $27,697 / UNIT

            NOI PER UNIT ANALYSIS CONCLUSION               $8,900,000 *             $25,948 / UNIT

            RECONCILED SALES COMPARISON VALUE              $9,200,000               $26,822 / UNIT




* Value indications are after adjustments for concessions, deferred maintenance, excess land and lease-up costs,
if any.
AMERICAN APPRAISAL ASSOCIATES, INC. EXECUTIVE SUMMARY PAGE 8
REGENCY OAKS, FERN PARK, FLORIDA

                PART THREE - SUMMARY OF VALUE CONCLUSIONS

       SALES COMPARISON APPROACH:
          Price Per Unit                        $9,600,000
          NOI Per Unit                          $8,900,000
          EGIM Multiplier                       $9,500,000
       INDICATED VALUE BY SALES COMPARISON      $9,200,000   $26,822 / UNIT

       INCOME APPROACH:
          Direct Capitalization Method:         $8,900,000
          Discounted Cash Flow Method:          $8,700,000
       INDICATED VALUE BY THE INCOME APPROACH   $8,800,000   $25,656 / UNIT

       RECONCILED OVERALL VALUE CONCLUSION:     $8,800,000   $25,656 / UNIT
AMERICAN APPRAISAL ASSOCIATES, INC. INTRODUCTION PAGE 9
REGENCY OAKS, FERN PARK, FLORIDA

                                                INTRODUCTION

IDENTIFICATION OF THE SUBJECT

The subject property is located at 200 Maltese Circle, Fern Park, Seminole County, Florida. Fern Park identifies
it as 20-21-30-300-001J-0000; 20-21-30-300-001K-0000.

SCOPE OF THE ASSIGNMENT

The property, neighborhood, and comparables were inspected by Alice MacQueen on December 9, 2003. Alice
MacQueen made a personal inspection of the subject property, performed the research, valuation analysis and
wrote the report. Frank
A. Fehribach, MAI reviewed the report and concurs with the value. Alice MacQueen has extensive experience in
appraising similar properties and meets the USPAP competency provision.

The scope of this investigation comprises the inspection of the property and the collection, verification, and
analysis of general and specific data pertinent to the subject property. We have researched current improved
sales and leases of similar properties, analyzing them as to their comparability, and adjusting them accordingly.
We completed the Sales Comparison and Income Capitalization Approaches to value. From these approaches to
value, a concluded overall value was made.

DATE OF VALUE AND REPORT

This appraisal was made to express the opinion of value as of December 9, 2003. The date of the report is
December 22, 2003.

PURPOSE AND USE OF APPRAISAL

The purpose of the appraisal is to estimate the market value of the fee simple interest in the subject property. It is
understood that the appraisal is intended to assist the clients in litigation settlement proceedings. The appraisal
was not based on a requested minimum valuation, a specific valuation, or the approval of a loan.

PROPERTY RIGHTS APPRAISED

We have appraised the Fee Simple Estate in the subject property (as applied in the Sales & Income
Approaches), subject to the existing short-term leases. A Fee Simple Estate is defined in The Dictionary of Real
Estate Appraisal, 3rd ed. (Chicago: Appraisal Institute,
AMERICAN APPRAISAL ASSOCIATES, INC. INTRODUCTION PAGE 10
REGENCY OAKS, FERN PARK, FLORIDA

1993), as:

"Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the
governmental powers of taxation, eminent domain, police power, and escheat."

MARKETING/EXPOSURE PERIOD

MARKETING PERIOD: 6 to 12 months EXPOSURE PERIOD: 6 to 12 months

HISTORY OF THE PROPERTY

Ownership in the subject property is currently vested in Consolidated Capital Equity. To the best of our
knowledge, no transfers of ownership or offers to purchase the subject are known to have occurred during the
past three years.
AMERICAN APPRAISAL ASSOCIATES, INC. AREA ANALYSIS PAGE 11
REGENCY OAKS, FERN PARK, FLORIDA

                                 AREA/NEIGHBORHOOD ANALYSIS

NEIGHBORHOOD ANALYSIS

A neighborhood is a group of complementary land uses. The function of the neighborhood analysis is to describe
the immediate surrounding environs. The subject is located in the city of Fern Park, Florida. Overall, the
neighborhood is characterized as a suburban setting with the predominant land use being institutional. The
subject's neighborhood is generally defined by the following boundaries.

NEIGHBORHOOD BOUNDARIES

East - Highway 417
West - Interstate 4
South - East-West Expressway
North - Red Bug Lake Road

MAJOR EMPLOYERS

Major employers in the subject's area include The Walt Disney World Company Universal Orlando, Florida
Hospital and Orlando Regional Healthcare, Lockheed Martin, Central Florida Investments and the University of
Central Florida. The overall economic outlook for the area is considered favorable.

DEMOGRAPHICS

We have reviewed demographic data within the neighborhood. The following table summarizes the key data
points.
AMERICAN APPRAISAL ASSOCIATES, INC. AREA ANALYSIS PAGE 12
REGENCY OAKS, FERN PARK, FLORIDA

                                   NEIGHBORHOOD DEMOGRAPHICS

                                                       AREA
                                    ------------------------------------------
      CATEGORY                      1-MI. RADIUS   3-MI. RADIUS   5-MI. RADIUS        MSA
      ---------------------------------------------------------------------------------------
      POPULATION TRENDS
      Current Population                 24,426        121,187        230,503      1,721,904
      5-Year Population                  26,001        129,066        245,725      1,921,950
      % Change CY-5Y                        6.4%           6.5%           6.6%          11.6%
      Annual Change CY-5Y                   1.3%           1.3%           1.3%           2.3%

      HOUSEHOLDS
      Current Households                        10,125             48,206            94,791            655,258
      5-Year Projected Households               10,754             51,041           100,505            731,362
      % Change CY - 5Y                             6.2%               5.9%              6.0%              11.6%
      Annual Change CY-5Y                          1.2%               1.2%              1.2%               2.3%

      INCOME TRENDS
      Median Household Income              $    32,016        $    35,441       $    37,406       $     40,114
      Per Capita Income                    $    17,041        $    18,768       $    21,478       $     21,799
      Average Household Income             $    41,464        $    47,148       $    52,290       $     57,283




Source: Demographics Now

The subject neighborhood's population is expected to show increases below that of the region. The immediate
market offers inferior income levels as compared to the broader market.

The following table illustrates the housing statistics in the subject's immediate area, as well as the MSA region.

                                               HOUSING TRENDS

                                                          AREA
                                       ------------------------------------------
                   CATEGORY            1-MI. RADIUS   3-MI. RADIUS   5-MI. RADIUS    MSA
          --------------------------------------------------------------------------------
          HOUSING TRENDS
          % of Households Renting          48.44%         39.16%        39.13%      30.55%
          5-Year Projected % Renting       47.20%         38.67%        38.65%      30.11%

          % of Households Owning                  39.21%            52.00%           53.05%           60.90%
          5-Year Projected % Owning               40.51%            52.59%           53.74%           61.87%




Source: Demographics Now
AMERICAN APPRAISAL ASSOCIATES, INC. AREA ANALYSIS PAGE 13
REGENCY OAKS, FERN PARK, FLORIDA

SURROUNDING IMPROVEMENTS

The following uses surround the subject property:

North - Retail/Commercial
South - Single/Multifamily
East - Bowling Alley and retail uses
West - Single/multifamily development

CONCLUSIONS

The subject is well located within the city of Fern Park. The neighborhood is characterized as being mostly
suburban in nature and is currently in the stable stage of development. The economic outlook for the
neighborhood is judged to be favorable with a good economic base.
AMERICAN APPRAISAL ASSOCIATES, INC. MARKET ANALYSIS PAGE 14
REGENCY OAKS, FERN PARK, FLORIDA

                                             MARKET ANALYSIS

The subject property is located in the city of Fern Park in Seminole County. The overall pace of development in
the subject's market is more or less stable. Recent construction in this submarket includes 220 units completed at
Centergate at Baldwin Park near downtown Orlando. The following table illustrates historical vacancy rates for
the subject's market.

                                        HISTORICAL VACANCY RATE

                                           Period Region Submarket
                                           -------------------------
                                           Aug-01   5.8%     5.0%
                                           Feb-02   9.2%     6.5%
                                           Aug-02   8.3%     6.2%
                                           Feb-03   9.5%     8.4%
                                           Aug-03   7.8%     6.7%




Source: Apartment Index Report, August 2003, by Carolinas Real Data

Occupancy trends in the subject's market are increasing. Historically speaking, the subject's submarket has
outperformed the overall market.

Market rents in the subject's market have been following an increasing trend. The following table illustrates
historical rental rates for the subject's market.

                                        HISTORICAL AVERAGE RENT

                               Period    Region   % Change    Submarket       % Change
                               ------    ------   --------    ---------       --------
                               Aug-01     $729        -         $725              -
                               Feb-02     $737      1.1%        $746            2.9%
                               Aug-02     $745      1.1%        $732           -1.9%
                               Feb-03     $749      0.5%        $739            1.0%
                               Aug-03     $775      3.5%        $747            1.1%




Source: Apartment Index Report, August 2003, by Carolinas Real Data

The following table illustrates a summary of the subject's competitive set.

                                        COMPETITIVE PROPERTIES

      No.              Property Name          Units Ocpy. Year Built Proximity to subject
      --------------------------------------------------------------------------------------
      R-1      Howel Branch Station            366    86%      1969     Same neighborhood
      R-2      Sandpiper                       196    90%      1974     Same neighborhood
      R-3      Semoran North                   348    N/A      1964     Same neighborhood
      R-4      Empiriam (Former Emerald Bay)   432    N/A      1972     Same neighborhood
      R-5      Birchwood Landing               184    N/A      1975     Same neighborhood
      Subject Regency Oaks                     343    92%      1969
      AMERICAN APPRAISAL ASSOCIATES, INC.                 PROPERTY DESCRIPTION PAGE 15
      REGENCY OAKS, FERN PARK, FLORIDA

                                   PROPERTY DESCRIPTION




SITE ANALYSIS

        Site Area                      20 acres, or 871,200 square feet
        Shape                          Irregular
        Topography                     Level
        Utilities                      All necessary utilities are available to the
                                        site.
        Soil Conditions                Stable
        Easements Affecting Site       None other than typical utility easements
        Overall Site Appeal            Average
        Flood Zone:
          Community Panel              12117C 0140 E, dated April 17, 1995
          Flood Zone                    Zone X
        Zoning                         R-3, the subject improvements represent a
                                        legal conforming use of the site.




REAL ESTATE TAXES

                                ASSESSED VALUE - 2003
                          ---------------------------------- TAX RATE / PROPERTY
        PARCEL NUMBER        LAND      BUILDING     TOTAL     MILL RATE    TAXES
        --------------------------------------------------------------------------
        20-21-30-300-
        001J-0000; 20-    $1,742,400 $7,151,040 $8,893,440     0.01714    $152,470
        21-30-300-001K-
        0000




IMPROVEMENT ANALYSIS

      Year Built                    1969
      Number of Units               343
      Net Rentable Area             342,080 Square Feet
      Construction:
       Foundation                   Reinforced concrete slab
       Frame                        Heavy or light wood
       Exterior Walls               Wood or vinyl siding
       Roof                         Composition shingle over a wood truss structure
      Project Amenities             Amenities at the subject include a swimming pool,
                                    tennis court, basketball court, picnic area, car
                                    wash, barbeque equipment, meeting hall, laundry
                                    room, business office, freshwater lake, and
                                    parking area.
      Unit Amenities                Individual unit amenities include a balcony, and
                                    washer
AMERICAN APPRAISAL ASSOCIATES, INC. PROPERTY DESCRIPTION PAGE 16
REGENCY OAKS, FERN PARK, FLORIDA

dryer connection. Appliances available in each unit include a refrigerator, stove, dishwasher, water heater,
garbage disposal, and oven.

Unit Mix:

                                                                 Unit Area
                                     Unit Type Number of Units (Sq. Ft.)
                                     -------------------------------------
                                     Studio           32             589
                                     1Br/1Ba          93             719
                                     2Br/1.5Ba       112             984
                                     2Br/2Ba          57           1,061
                                     2Br/2.5Ba        25           1,800
                                     3Br/2Ba          12           1,320
                                     3Br/2.5Ba        12           2,070



                                    Overall Condition                     Average
                                    Effective Age                         25 years
                                    Economic Life                         45 years
                                    Remaining Economic Life               20 years
                                    Deferred Maintenance                  None




HIGHEST AND BEST USE ANALYSIS

In accordance with the definition of highest and best use, an analysis of the site relating to its legal uses, physical
possibilities, and financial feasibility is appropriate. The highest and best use as vacant is to hold for future multi-
family development. The subject improvements were constructed in 1969 and consist of a 343-unit multifamily
project. The highest and best use as improved is for a continued multifamily use. Overall, the highest and best use
of the subject property is the continued use of the existing apartment project.
AMERICAN APPRAISAL ASSOCIATES, INC. VALUATION PROCEDURE PAGE 17
REGENCY OAKS, FERN PARK, FLORIDA

                                       THE VALUATION PROCEDURE

There are three traditional approaches, which can be employed in establishing the market value of the subject
property. These approaches and their applicability to the valuation of the subject are summarized as follows:

THE COST APPROACH

The application of the Cost Approach is based on the principle of substitution. This principle may be stated as
follows: no one is justified in paying more for a property than that amount by which he or she can obtain, by
purchase of a site and construction of a building, without undue delay, a property of equal desirability and utility.
In the case of a new building, no deficiencies in the building should exist.

In the case of income-producing real estate, the cost of construction plays a minor and relatively insignificant role
in determining market value. The Cost Approach is typically only a reliable indicator of value for: (a) new
properties; (b) special use properties; and (c) where the cost of reproducing the improvements is easily and
accurately quantified and there is no economic obsolescence. In all instances, the issue of an appropriate
entrepreneurial profit - the reward for undertaking the risk of construction, remains a highly subjective factor
especially in a market lacking significant speculative development.

THE SALES COMPARISON APPROACH

The Sales Comparison Approach is an estimate of value based upon a process of comparing recent sales of
similar properties in the surrounding or competing areas to the subject property. Inherent in this approach is the
principle of substitution.

The application of this approach consists of comparing the subject property with similar properties of the same
general type which have been sold recently or currently are available for sale in competing areas. This
comparative process involves judgment as to the similarity of the subject property and the comparable sale with
respect to many value factors such as location, contract rent levels, quality of construction, reputation and
prestige, age and condition, among others. The estimated value through this approach represents the probable
price at which a willing seller would sell the subject property to a willing and knowledgeable buyer as of the date
of value.
AMERICAN APPRAISAL ASSOCIATES, INC. VALUATION PROCEDURE PAGE 18
REGENCY OAKS, FERN PARK, FLORIDA

THE INCOME CAPITALIZATION APPROACH

The theory of the Income Capitalization Approach is based on the premise that present value is the value of the
cash flow and reversionary value the property will produce over a reasonable holding (ownership) period.

The Discounted Cash Flow Analysis will convert equity cash flows (including cash flows and equity reversion)
into a present value utilizing an internal rate of return (or discount rate). The Internal Rate of Return (IRR) will be
derived from a comparison of alternate investments, a comparative analysis of IRR's used by recent buyers of
similar properties, and a review of published industry surveys.

The Direct Capitalization Analysis converts one year of income into an overall value using overall capitalization
rates from similar sales. The overall rates take into consideration buyers assumptions of the market over the long-
term.

The results of the Income Capitalization Analysis are usually the primary value indicator for income producing
properties. Investors expect a reasonable rate of return on their equity investment based on the ownership risks
involved; this approach closely parallels the investment decision process.

RECONCILIATION

In this instance, we have completed the Sales Comparison and Income Capitalization Approaches to value. As
an income producing property, the income approach is a primary approach to value. The Sales Comparison
Approach is also considered reliable as investors are buying similar buildings in the market.

Our research indicates that market participants are generally not buying, selling, investing, or lending with reliance
placed on the methodology of the Cost Approach to establish the value. Therefore, we have decided that the
Cost Approach is not a reliable indicator of value for the subject, and this approach has not been utilized.
AMERICAN APPRAISAL ASSOCIATES, INC. SALES COMPARISON APPROACH PAGE 19
REGENCY OAKS, FERN PARK, FLORIDA

                                      SALES COMPARISON APPROACH

Use of market or comparable sales requires the collection and analysis of comparable sales data. Similar
properties recently sold are compared to the subject and adjusted based on any perceived differences. This
method is based on the premise that the costs of acquiring a substitute property would tend to establish a value
for the subject property. The premise suggests that if a substitute is unavailable in the market, the reliability of the
approach may be subordinate to the other approaches.

The reliance on substitute properties produces shortcomings in the validity of this approach. Geographic and
demographic characteristics from each submarket restrict which sales may be selected. Recent sales with a
similar physical characteristics, income levels, and location are usually limited. The sales we have identified,
however, do establish general valuation parameters as well as provide support to our conclusion derived through
the income approach method.

The standard unit of comparison among similar properties is the sales price per unit and price per square foot of
net rentable area. To accurately adjust prices to satisfy the requirements of the sales comparison approach,
numerous calculations and highly subjective judgments would be required including consideration of numerous
income and expense details for which information may be unreliable or unknown. The sales price per unit and
square foot are considered relevant to the investment decision, but primarily as a parameter against which value
estimates derived through the income approach can be judged and compared.

In examining the comparable sales, we have applied a subjective adjustment analysis, which includes specific
adjustments derived from our experience and consulting with the market participants.

SALES COMPARISON ANALYSIS

Detailed on the following pages are sales transactions involving properties located in the subject's competitive
investment market.

Photographs of the sale transactions are located in the Addenda. Following the summary of sales is an adjustment
grid that is used to arrive at a value.
AMERICAN APPRAISAL ASSOCIATES, INC. SALES COMPARISON APPROACH PAGE 20
REGENCY OAKS, FERN PARK, FLORIDA

SUMMARY OF COMPARABLE SALES -IMPROVED

                                                                  COMPARABLE                    COMPARABL
          DESCRIPTION                     SUBJECT                   I - 1                         I - 2
---------------------------------------------------------------------------------------------------------
  Property Name                    Regency Oaks          Empirian (formerly known as   Sedgefield Apartme
                                                         Emerald Bay)
LOCATION:
  Address                          200 Maltese Circle    5 Autumn Breeze Way           110 Sedgefield Cir
  City, State                      Fern Park, Florida    Winter Park, FL               Winter Park, FL
  County                           Seminole              Seminole                      Seminole
PHYSICAL CHARACTERISTICS:
  Net Rentable Area (SF)           342,080               427,680                       98,346
  Year Built                       1969                  1972                          1973
  Number of Units                  343                   432                           111
  Unit Mix:                          Type         Total    Type            Total        Type
                                   Studio           32   1Br/1BA             149       1Br/1BA
                                   1Br/1Ba          93   2Br/2BA             132       2Br/2BA
                                   2Br/1.5Ba       112   3Br/2BA             151       3Br/2BA
                                   2Br/2Ba          57
                                   2Br/2.5Ba        25
                                   3Br/2Ba          12
                                   3Br/2.5Ba        12

  Average Unit Size (SF)           997                    990                            886
  Land Area (Acre)                 20.0000                23.0790                        8.7000
  Density (Units/Acre)             17.2                   18.7                           12.8
  Parking Ratio (Spaces/Unit)      0.00                   Adequate                       Adequate
  Parking Type (Gr., Cov., etc.)   Garage, Open Covered   Open + Carports                Open
CONDITION:                         Fair to Average        Good                           Good
APPEAL:                            Average                Good                           Good
AMENITIES:
  Pool/Spa                         Yes/No                 Yes/No                         Yes/No
  Gym Room                         No                     Yes                            Yes
  Laundry Room                     Yes                    Yes                            Yes
  Secured Parking                  No                     No                             No
  Sport Courts                     Yes                    No                             No
  Washer/Dryer Connection          Some                   No                             No
  Other
  Other
OCCUPANCY:                         92%                    94%                            95%
TRANSACTION DATA:
  Sale Date                                               May, 2003                      November, 2002
  Sale Price ($)                                          $17,200,000                    $3,862,500
  Grantor                                                 ERP Operating LP               Sedgefield Associa

  Grantee                                                 Empirian Bay, LLC              S&L Enterprises Lt

  Sale Documentation                                      Doc# 6912-3261                 Doc# 4611-1975
  Verification                                            CoStar Realty                  CoStar Realty
  Telephone Number
ESTIMATED PRO-FORMA:                                       Total $      $/Unit   $/SF    Total $       $/Unit
  Potential Gross Income                                  $3,541,190    $8,197   $8.28   $806,460      $7,265
  Vacancy/Credit Loss                                     $ 354,119     $ 820    $0.83   $ 80,646      $ 727
  Effective Gross Income                                  $3,187,071    $7,377   $7.45   $725,814      $6,539
  Operating Expenses                                      $1,434,182    $3,320   $3.35   $355,200      $3,200
  Net Operating Income                                    $1,752,889    $4,058   $4.10   $370,614      $3,339

NOTES:                                                    Located just off Rt 436 in     Located near the s
                                                          subject's neighborhood.        the same neighborh
                                                          Units have been renovated      All brick, good co
                                                          and are superior to subject.   overall superior t
  PRICE PER UNIT                                                   $39,815                        $34,797
  PRICE PER SQUARE FOOT                                            $ 40.22                        $ 39.27
  EXPENSE RATIO                                                       45.0%                          48.9%
  EGIM                                                                5.40                           5.32
  OVERALL CAP RATE                                                   10.19%                          9.60%
  Cap Rate based on Pro Forma or
   Actual Income?                                                  PRO FORMA                        PRO FORMA

                                             COMPARABLE                      COMPARABLE
          DESCRIPTION                          I - 3                           I - 4
---------------------------------------------------------------------------------------------------------
  Property Name                    La Aloma                        Courtyard at Winter Park       The Ash
LOCATION:
  Address                          3040 Aloma Avenue                    1695 Lee Road                      693 S W
  City, State                      Winter Park, FL                      Winter Park, FL                    Altamon
  County                           Seminole                             Seminole                           Seminol
PHYSICAL CHARACTERISTICS:
  Net Rentable Area (SF)           176,824                              177,349                            238,424
  Year Built                       1967                                 1966                               1974
  Number of Units                  184                                  160                                260
  Unit Mix:                          Type                    Total        Type                    Total      Type
                                   1Br/1BA                     40       1Br/1BA                   40       1Br/1BA
                                   2Br/2BA                    124       2Br/2BA                   80       2Br/2BA
                                   3Br/2BA                     20       3Br/2BA                   40       3Br/2BA




  Average Unit Size (SF)           961                                  1,108                              917
  Land Area (Acre)                 9.1000                               9.5530                             16.0000
  Density (Units/Acre)             20.2                                 16.7                               16.3
  Parking Ratio (Spaces/Unit)      Adequate                             Adequate                           Adequat
  Parking Type (Gr., Cov., etc.)   Open                                 Open                               Open
CONDITION:                         Good                                 Good                               Good
APPEAL:                            Good                                 Good                               Good
AMENITIES:
  Pool/Spa                         Yes/No                               Yes/No                             Yes/No
  Gym Room                         Yes                                  Yes                                Yes
  Laundry Room                     Yes                                  Yes                                Yes
  Secured Parking                  No                                   No                                 No
  Sport Courts                     No                                   No                                 No
  Washer/Dryer Connection          No                                   No                                 No
  Other
  Other
OCCUPANCY:                         95%                                  90%                                95%
TRANSACTION DATA:
  Sale Date                        September, 2002                      May, 2001                          August,
  Sale Price ($)                   $6,750,000                           $6,100,000                         $11,180
  Grantor                          Veard-Winter Park Ltd                Miles-Courtyard-WP LLC             Gray Lu

  Grantee                          Florida Investment Properties,       PRG/Winter Park LP                 Atlamon
                                   LLC
  Sale Documentation               Doc# 6629-8177                       Doc#6258-4812                      Doc#416
  Verification                     Carolinas Real Data                  Carolinas Real Data                Carolin
  Telephone Number
ESTIMATED PRO-FORMA:                 Total $        $/Unit      $/SF     Total $         $/Unit    $/SF     Total
  Potential Gross Income           $1,385,280       $7,529      $7.83   $1,286,400       $8,040    $7.25   $2,126,
  Vacancy/Credit Loss              $ 207,792        $1,129      $1.18   $ 136,320        $ 852     $0.77   $ 212,
  Effective Gross Income           $1,177,488       $6,399      $6.66   $1,150,080       $7,188    $6.48   $1,913,
  Operating Expenses               $ 533,600        $2,900      $3.02   $ 480,000        $3,000    $2.71   $ 910,
  Net Operating Income             $ 643,888        $3,499      $3.64   $ 670,080        $4,188    $3.78   $1,003,

NOTES:                             Situated in same submarket           Located in same submarket          Located
                                   but superior overall. Well-          but with inferior location.        the sam
                                   maintained, superior curb            Similar to superior condition      Overall
                                   appeal and condition.                compared to the subject.           subject
  PRICE PER UNIT                            $36,685                              $38,125
  PRICE PER SQUARE FOOT                     $ 38.17                              $ 34.40
  EXPENSE RATIO                                45.3%                                41.7%
  EGIM                                         5.73                                 5.30
  OVERALL CAP RATE                             9.54%                               10.98%
  Cap Rate based on Pro Forma or
   Actual Income?                             PRO FORMA                           PRO FORMA
AMERICAN APPRAISAL ASSOCIATES, INC. SALES COMPARISON APPROACH PAGE 21
REGENCY OAKS, FERN PARK, FLORIDA

                                        IMPROVED SALES MAP

                                                   [MAP]

IMPROVED SALES ANALYSIS

The improved sales indicate a sales price range from $34,797 to $43,000 per unit. Adjustments have been made
to the sales to reflect differences in location, age/condition and quality/appeal. Generally speaking, larger
properties typically have a lower price per unit when compared to smaller properties, all else being equal.
Similarly, those projects with a higher average unit size will generally have a higher price per unit. After
appropriate adjustments are made, the improved sales demonstrate an adjusted range for the subject from
$26,268 to $29,861 per unit with a mean or average adjusted price of $28,195 per unit. The median adjusted
price is $28,339 per unit. Based on the following analysis, we have concluded to a value of $28,000 per unit,
which results in an "as is" value of $9,600,000 (rounded after necessary adjustment, if any).
AMERICAN APPRAISAL ASSOCIATES, INC. SALES COMPARISON APPROACH PAGE 22
REGENCY OAKS, FERN PARK, FLORIDA

SALES ADJUSTMENT GRID

                                                                   COMPARABLE                      COMPARA
            DESCRIPTION                    SUBJECT                    I - 1                            I -
---------------------------------------------------------------------------------------------------------
 Property Name                        Regency Oaks          Empirian (formerly            Sedgefield Apar
                                                            known as Emerald Bay)
 Address                              200 Maltese Circle    5 Autumn Breeze Way           110 Sedgefield
 City                                 Fern Park, Florida    Winter Park, FL               Winter Park, FL
 Sale Date                                                  May, 2003                     November, 2002
 Sale Price ($)                                             $17,200,000                   $3,862,500
 Net Rentable Area (SF)               342,080               427,680                       98,346
 Number of Units                      343                   432                           111
 Price Per Unit                                             $39,815                       $34,797
 Year Built                           1969                  1972                          1973
 Land Area (Acre)                     20.0000               23.0790                       8.7000
VALUE ADJUSTMENTS                         DESCRIPTION           DESCRIPTION        ADJ.       DESCRIPTION
 Property Rights Conveyed             Fee Simple Estate     Fee Simple Estate       0%    Fee Simple Esta
 Financing                                                  Cash To Seller          0%    Cash To Seller
 Conditions of Sale                                         Arm's Length            0%    Arm's Length
 Date of Sale (Time)                                        05-2003                 0%    11-2002
VALUE AFTER TRANS. ADJUST. ($/UNIT)                               $39,815                      $35,841
 Location                                                   Superior               -5%    Superior
 Number of Units                      343                   432                     0%    111
 Quality / Appeal                     Average               Superior              -15%    Superior
 Age / Condition                      1969                  1972 / Good            -5%    1973 / Good
 Occupancy at Sale                    92%                   94%                     0%    95%
 Amenities                            Average               Comparable              0%    Comparable
 Average Unit Size (SF)               997                   990                     0%    886
 PHYSICAL ADJUSTMENT                                                              -25%
 FINAL ADJUSTED VALUE ($/UNIT)                                    $29,861                      $26,881

                                            COMPARABLE                    COMPARABLE
            DESCRIPTION                        I - 3                         I - 4
---------------------------------------------------------------------------------------------------------
 Property Name                        La Aloma                      Courtyard at Winter Park        The A

 Address                              3040 Aloma Avenue                 1695 Lee Road               693 S
 City                                 Winter Park, FL                   Winter Park, FL             Altam
 Sale Date                            September, 2002                   May, 2001                   Augus
 Sale Price ($)                       $6,750,000                        $6,100,000                  $11,1
 Net Rentable Area (SF)               176,824                           177,349                     238,4
 Number of Units                      184                               160                         260
 Price Per Unit                       $36,685                           $38,125                     $43,0
 Year Built                           1967                              1966                        1974
 Land Area (Acre)                     9.1000                            9.5530                      16.00
VALUE ADJUSTMENTS                          DESCRIPTION         ADJ.          DESCRIPTION     ADJ.       DE
 Property Rights Conveyed             Fee Simple Estate         0%      Fee Simple Estate     0%    Fee S
 Financing                            Cash To Seller            0%      Cash To Seller        0%    Cash
 Conditions of Sale                   Arm's Length              0%      Arm's Length          0%    Arm's
 Date of Sale (Time)                  09-2002                   3%      05-2001               6%    08-20
VALUE AFTER TRANS. ADJUST. ($/UNIT)                $37,785                    $40,413
 Location                             Superior                 -5%      Superior             -5%    Super
 Number of Units                      184                      -5%      160                  -5%    260
 Quality / Appeal                     Superior                -15%      Superior            -15%    Super
 Age / Condition                      1967 / Good               0%      1966 / Good           0%    1974
 Occupancy at Sale                    95%                       0%      90%                   0%    95%
 Amenities                            Comparable                0%      Comparable            0%    Compa
 Average Unit Size (SF)               961                       0%      1,108               -10%    917
 PHYSICAL ADJUSTMENT                                          -25%                          -35%
 FINAL ADJUSTED VALUE ($/UNIT)                    $28,339                     $26,268




SUMMARY

                   VALUE RANGE (PER UNIT)                    $26,268   TO   $29,861
                   MEAN (PER UNIT)                           $28,195
                   MEDIAN (PER UNIT)                         $28,339
                   VALUE CONCLUSION (PER UNIT)               $28,000
         VALUE INDICATED BY SALES COMPARISON APPROACH                                      $9,604,000
         ROUNDED                                                                           $9,600,000




NET OPERATING INCOME (NOI) ANALYSIS

We have also conducted a net operating income (NOI) comparison analysis. The NOI effectively takes into
account the various physical, location, and operating aspects of the sale. When the subject's NOI is compared to
the sale NOI, a percent adjustment can be arrived at. The following table illustrates this analysis.
AMERICAN APPRAISAL ASSOCIATES, INC. SALES COMPARISON APPROACH PAGE 23
REGENCY OAKS, FERN PARK, FLORIDA

                                        NOI PER UNIT COMPARISON

                       SALE PRICE                      NOI/        SUBJECT NOI
COMPARABLE   NO. OF    ----------                      ----        -----------    ADJUSTMENT      INDICAT
    NO.       UNITS    Price/unit        OAR         NOI/UNIT    SUBJ. NOI/UNIT    FACTOR         VALUE/U
---------------------------------------------------------------------------------------------------------
   I-1       432       $17,200,000      10.19%     $1,752,889    $870,478         0.625           $24,902
                       $    39,815                 $     4,058   $ 2,538
   I-2       111       $ 3,862,500       9.60%     $ 370,614     $870,478         0.760           $26,449
                       $    34,797                 $     3,339   $ 2,538
   I-3       184       $ 6,750,000       9.54%     $ 643,888     $870,478         0.725           $26,605
                       $    36,685                 $     3,499   $ 2,538
   I-4       160       $ 6,100,000      10.98%     $ 670,080     $870,478         0.606           $23,103
                       $    38,125                 $     4,188   $ 2,538
   I-5       260       $11,180,000       8.98%     $1,003,976    $870,478         0.657           $28,261
                       $    43,000                 $     3,861   $ 2,538




                                                  PRICE/UNIT

                                Low            High           Average         Median
                              $23,103        $28,261         $25,864         $26,449




                   VALUE ANALYSIS BASED ON COMPARABLES NOI PER UNIT

                   Estimated Price Per Unit                                          $   26,000
                   Number of Units                                                          343
                                                                                     ----------
                   Value Based on NOI Analysis                                       $8,918,000
                                                              Rounded                $8,900,000




The adjusted sales indicate a range of value between $23,103 and $28,261 per unit, with an average of $25,864
per unit. Based on the subject's competitive position within the improved sales, a value of $26,000 per unit is
estimated. This indicates an "as is" market value of $8,900,000 (rounded after necessary adjustment, if any) for
the NOI Per Unit Analysis.

EFFECTIVE GROSS INCOME MULTIPLIER (EGIM) ANALYSIS

The effective gross income multiplier (EGIM) is derived by dividing the sales price by the total effective gross
income. The following table illustrates the EGIMs for the comparable improved sales.

                     EFFECTIVE GROSS INCOME MULTIPLIER COMPARISON

                           SALE PRICE
COMPARABLE       NO. OF    ----------         EFFECTIVE        OPERATING               SUBJECT
   NO.           UNITS     PRICE/UNIT       GROSS INCOME        EXPENSE      OER    PROJECTED OER      EG
---------------------------------------------------------------------------------------------------------
   I-1           432       $17,200,000      $3,187,071        $1,434,182    45.00%                      5
                           $    39,815
   I-2           111       $ 3,862,500      $ 725,814         $ 355,200     48.94%                      5
                           $    34,797
   I-3           184       $ 6,750,000      $1,177,488        $ 533,600     45.32%      56.23%          5
                           $    36,685
   I-4           160       $ 6,100,000      $1,150,080        $ 480,000     41.74%                      5
                           $    38,125
   I-5           260       $11,180,000      $1,913,976        $ 910,000     47.55%                      5
                           $    43,000




                                                       EGIM
                Low          High   Average   Median
                5.30         5.84     5.52     5.40




  VALUE ANALYSIS BASED ON EGIM'S OF COMPARABLE SALES

Estimate EGIM                                                4.00
Subject EGI                                            $2,380,470
                                                       ----------
Value Based on EGIM Analysis                           $9,521,878
                                    Rounded            $9,500,000

                Value Per Unit                         $   27,697
AMERICAN APPRAISAL ASSOCIATES, INC. SALES COMPARISON APPROACH PAGE 24
REGENCY OAKS, FERN PARK, FLORIDA

There is an inverse relationship, which generally holds among EGIMs and operating expenses. Properties, which
have higher expense ratios, typically sell for relatively less and therefore produce a lower EGIM. As will be
illustrated in the Income Capitalization Approach of this report, the subject's operating expense ratio (OER) is
estimated at 56.23% before reserves. The comparable sales indicate a range of expense ratios from 41.74% to
48.94%, while their EGIMs range from 5.30 to 5.84. Overall, we conclude to an EGIM of 4.00, which results in
an "as is" value estimate in the EGIM Analysis of $9,500,000.

SALES COMPARISON CONCLUSION

The three valuation methods in the Sales Comparison Approach are shown below. The overall value via the Sales
Comparison Approach is estimated at $9,200,000.

                           Price Per Unit                                $9,600,000
                           NOI Per Unit                                  $8,900,000
                           EGIM Analysis                                 $9,500,000

                           Sales Comparison Conclusion                   $9,200,000
AMERICAN APPRAISAL ASSOCIATES, INC. INCOME CAPITALIZATION APPROACH PAGE
25
REGENCY OAKS, FERN PARK, FLORIDA

                                 INCOME CAPITALIZATION APPROACH

The income capitalization approach is based on the premise that value is created by the expectation of future
benefits. We estimated the present value of those benefits to derive an indication of the amount that a prudent,
informed purchaser-investor would pay for the right to receive them as of the date of value.

This approach requires an estimate of the NOI of a property. The estimated NOI is then converted to a value
indication by use of either the direct capitalization or the discounted cash flow analysis (yield capitalization).

Direct capitalization uses a single year's stabilized NOI as a basis for a value indication by dividing the income by
a capitalization rate. The rate chosen accounts for a recapture of the investment by the investor and should reflect
all factors that influence the value of the property, such as tenant quality, property condition, neighborhood
change, market trends, interest rates, and inflation. The rate may be extracted from local market transactions or,
when transaction evidence is lacking, obtained from trade sources.

A discounted cash flow analysis focuses on the operating cash flows expected from the property and the
proceeds of a hypothetical sale at the end of a holding period (the reversion). The cash flows and reversion are
discounted to their present values using a market-derived discount rate and are added together to obtain a value
indication. Because benefits to be received in the future are worth less than the same benefits received in the
present, this method weights income in the early years more heavily than the income and the sale proceeds to be
received later. The strength of the discounted cash flow method is its ability to recognize variations in projected
net income, such as those caused by inflation, stepped leases, neighborhood change, or tenant turnover. Its
weakness is that it requires many judgments regarding the actions of likely buyers and sellers of the property in
the future.

In some situations, both methods yield a similar result. The discounted cash flow method is typically more
appropriate for the analysis of investment properties with multiple or long-term leases, particularly leases with
cancellation clauses or renewal options. It is especially useful for multi-tenant properties in volatile markets. The
direct capitalization
AMERICAN APPRAISAL ASSOCIATES, INC. INCOME CAPITALIZATION APPROACH PAGE
26
REGENCY OAKS, FERN PARK, FLORIDA

method is normally more appropriate for properties with relatively stable operating histories and expectations.

A pro forma analysis for the first year of the investment is made to estimate a reasonable potential net operating
income for the Subject Property. Such an analysis entails an estimate of the gross income the property should
command in the marketplace. From this total gross income must be deducted an allowance for vacancy/collection
loss and operating expenses as dictated by general market conditions and the overall character of the subject's
tenancy and leased income to arrive at a projected estimate of net operating income. Conversion of the net
operating income to an indication of value is accomplished by the process of capitalization, as derived primarily
from market data.

MARKET RENT ANALYSIS

In order to determine a market rental rate for the subject, a survey of competing apartment communities was
performed. This survey was displayed previously in the market analysis section of the report. Detailed information
pertaining to each of the comparable rental communities, along with photographs, is presented in the Addenda of
this report.

The following charts display the subject's current asking and actual rent rates as well as a comparison with the
previous referenced comparable rental properties.

                               SUMMARY OF ACTUAL AVERAGE RENTS

                                                       Average
                                 Unit Area      ----------------------
               Unit Type         (Sq. Ft.)      Per Unit        Per SF      %Occupied
               -----------------------------------------------------------------------
               Studio              589          $ 642            $1.09        100.0%
               1Br/1Ba             719          $ 641            $0.89         95.8%
               2Br/1.5Ba           984          $ 638            $0.65         93.5%
               2Br/2Ba            1061          $ 955            $0.90        100.0%
               2Br/2.5Ba          1800          $ 920            $0.51         91.0%
               3Br/2Ba            1320          $ 900            $0.68         97.0%
               3Br/2.5Ba          2070          $1,002           $0.48        100.0%
AMERICAN APPRAISAL ASSOCIATES, INC. INCOME CAPITALIZATION APPROACH PAGE
27
REGENCY OAKS, FERN PARK, FLORIDA

                                            RENT ANALYSIS

                                                                                  COMPARABLE RENTS
                                                                 -------------------------------------------------
                                                                   R-1        R-2     R-3       R-4         R-5
                                                                 -------------------------------------------------
                                                                                               EMPRIAM
                                                                   HOWEL                       (FORMER
                                                                  BRANCH             SEMORAN   EMERALD   BIRCHWOOD
                                                                 STATION SANDPIPER    NORTH      BAY)     LANDING
                            SUBJECT    SUBJECT       SUBJECT     ------- --------- ------- --------- ---------
                             UNIT       ACTUAL        ASKING                   COMPARISON TO SUBJECT
     DESCRIPTION             TYPE        RENT          RENT      Superior Superior Superior Superior      Similar
------------------------   ---------   -------       -------     -------- -------- -------- --------      -------
Monthly Rent               Studio      $   642       $   ???     $   520   $   495   $   590              $ 535
Unit Area (SF)                             589           589         538       560       782                 ???
Monthly Rent per Sq. Ft.               $   ???       $   ???     $   ???   $ 0.88    $ 0.75               $ 0.97

Monthly Rent               1Br/1Ba     $     641     $    519    $      558   $    495   $    590      $   579    $  535
Unit Area (SF)                               719          719           ???        ???        782          720       550
Monthly Rent per Sq. Ft.               $    0.89     $   0.72    $     0.76   $   0.88   $   0.75      $   ???    $ 0.97

Monthly Rent               2Br/1.5Ba   $     638     $   629     $  655       $  685     $    685                 $  660
Unit Area (SF)                               ???         964      1,037        1,024          ???                    950
Monthly Rent per Sq. Ft.                     ???     $   ???     $ 0.63       $ 0.66     $   0.62                 $ 0.69

Monthly Rent               2Br/2Ba     $   955       $    649    $   785      $   705    $  750        $    610
Unit Area (SF)                           1,061            ???      1,102        1,076     1,280             976
Monthly Rent per Sq. Ft.               $   ???       $   0.61    $   ???      $   ???    $ 0.59        $   0.63

Monthly Rent               2Br/2.5Ba   $     920     $  ???      $  785       $  745          ???
Unit Area (SF)                               ???      1,800       1,102        1,146          ???
Monthly Rent per Sq. Ft.               $    0.51     $ 0.55      $ 0.65       $ 0.65     $   0.59

Monthly Rent               3Br/2Ba     $  ???        $  874      $  824       $    805   $   815       $   815
Unit Area (SF)                          1,320         1,320       1,417            ???     1,357         1,270
Monthly Rent per Sq. Ft.               $ 0.68        $ 0.66      $ 0.58       $   0.63   $   ???       $   ???

Monthly Rent               3Br/2.5Ba                 $ 1,014                  $  ???     $    815
Unit Area (SF)                             2,070       2,070                   1,315          ???
Monthly Rent per Sq. Ft.                             $   ???                  $ 0.64     $    ???



                                            SUBJECT
                                             UNIT
                 DESCRIPTION                 TYPE           MIN          MAX       MEDIAN    AVERAGE
            ------------------------       ---------      -------       ------    --------   -------
            Monthly Rent                   Studio         $   495       $ 590      $   529    $ 535
            Unit Area (SF)                                    534          782         555       648
            Monthly Rent per Sq. Ft.                      $ 0.75        $ 1.09     $ 0.93        ???

            Monthly Rent                   1Br/1Ba        $      495    $  590    $    558   $  561
            Unit Area (SF)                                       550       782         720      669
            Monthly Rent per Sq. Ft.                      $     0.75    $ 0.97    $   0.80   $ 0.84

            Monthly Rent                   2Br/1.5Ba      $      655    $  685    $  670     $ 670
            Unit Area (SF)                                       ???       ???     1,051      1,031
            Monthly Rent per Sq. Ft.                      $     0.62    $ 0.69    $ 0.65     $ 0.65

            Monthly Rent                   2Br/2Ba        $      610    $ 715     $    ???   $  695
            Unit Area (SF)                                       976     1,200         ???      ???
            Monthly Rent per Sq. Ft.                      $     0.59    $ 0.90    $   0.64   $ 0.63

            Monthly Rent                   2Br/2.5Ba      $  750        $ 745     $  715     $   723
            Unit Area (SF)                                 1,102         1,200     1,146         ???
            Monthly Rent per Sq. Ft.                      $ 0.59        $ 0.63    $ 0.65         ???
              Monthly Rent                   3Br/2Ba       $  ???     $ 824     $  815       $ 815
              Unit Area (SF)                                1,270      1,417     1,319        1,331
              Monthly Rent per Sq. Ft.                     $ 0.58     $ ???     $ 0.41       $ ???

              Monthly Rent                   3Br/2.5Ba     $  815     $ 845     $     830    $ ???
              Unit Area (SF)                                1,315      1,357          ???     1,335
              Monthly Rent per Sq. Ft.                     $ 0.60     $ 0.64    $    0.62    $ 0.62




CONCLUDED MARKET RENTAL RATES AND TERMS

Based on this analysis above, the subject's concluded market rental rates and gross rental income is calculated as
follows:

                                GROSS RENTAL INCOME PROJECTION

                                                                   Market Rent
                                              Unit Area        ------------------            Monthly            Annual
Unit Type               Number of Units        (Sq. Ft.)       Per Unit    Per SF            Income             Income
---------               ---------------       ----------       --------    ------           --------         -----------
Studio                         32                  589           $480       $0.81           $ 15,360         $   184,320
1Br/1Ba                        93                  719           $500       $0.70           $ 46,500         $   558,000
2Br/1.5Ba                     112                  984           $620       $0.63           $ 69,440         $   833,280
2Br/2Ba                        57                1,061           $630       $0.59           $ 35,910         $   430,920
2Br/2.5Ba                      25                1,800           $930       $0.52           $ 23,250         $   279,000
3Br/2Ba                        12                1,320           $840       $0.64           $ 10,080         $   120,960
3Br/2.5Ba                      12                2,070           $950       $0.46           $ 11,400         $   136,800
                                                                                            --------         -----------
                                                                             Total          $211,940         $ 2,543,280
                                                                                            ========         ===========




PRO FORMA ANALYSIS

For purposes of this appraisal, we were provided with income and expense data for the subject property. A
summary of this data is presented as follows.
AMERICAN APPRAISAL ASSOCIATES, INC. INCOME CAPITALIZATION APPROACH PAGE
28
REGENCY OAKS, FERN PARK, FLORIDA

SUMMARY OF HISTORICAL INCOME & EXPENSES

                                FISCAL YEAR 2000           FISCAL YEAR 2001            FISCAL YEAR 2002
                             -----------------------    -----------------------     -----------------------
                                     ACTUAL                     ACTUAL                      ACTUAL
                             -----------------------    -----------------------     -----------------------
      DESCRIPTION              TOTAL        PER UNIT      TOTAL        PER UNIT       TOTAL        PER UNIT
------------------------     ----------   ----------    ----------   ----------     ----------   ----------
Revenues
 Rental Income               $2,458,328   $    7,167    $2,581,032    $    7,525    $2,537,636     $    7,398

 Vacancy                     $ 233,457    $      681    $ 324,527     $      946    $ 469,222      $    1,368
 Credit Loss/Concessions     $   22,874   $       67    $   88,769    $      259    $ 114,711      $      334
                             ----------   ----------    ----------    ----------    ----------     ----------
  Subtotal                   $ 256,331    $      747    $ 413,296     $    1,205    $ 583,933      $    1,702

 Laundry Income              $   39,854   $      116    $   25,363    $       74    $   20,645     $       60
 Garage Revenue              $        0   $        0    $        0    $        0    $        0     $        0
 Other Misc. Revenue         $ 107,229    $      313    $ 166,672     $      486    $ 269,713      $      786
                             ----------   ----------    ----------    ----------    ----------     ----------
  Subtotal Other Income      $ 147,083    $      429    $ 192,035     $      560    $ 290,358      $      847
                             ----------   ----------    ----------    ----------    ----------     ----------
Effective Gross Income       $2,349,080   $    6,849    $2,359,771    $    6,880    $2,244,061     $    6,542

Operating Expenses
 Taxes                       $ 139,820    $      408    $ 153,351     $      447    $ 147,646      $      430
 Insurance                   $   39,177   $      114    $ 113,414     $      331    $ 105,487      $      308
 Utilities                   $ 208,232    $      607    $ 238,895     $      696    $ 217,636      $      635
 Repair & Maintenance        $ 118,108    $      344    $ 108,380     $      316    $   74,832     $      218
 Cleaning                    $ 138,525    $      404    $ 125,153     $      365    $ 140,296      $      409
 Landscaping                 $ 116,333    $      339    $   90,443    $      264    $ 150,006      $      437
 Security                    $        0   $        0    $        0    $        0    $        0     $        0
 Marketing & Leasing         $   41,987   $      122    $   53,048    $      155    $   58,386     $      170
 General Administrative      $ 413,804    $    1,206    $ 387,469     $    1,130    $ 298,082      $      869
 Management                  $ 119,727    $      349    $ 128,930     $      376    $ 112,330      $      327
 Miscellaneous               $        0   $        0    $        0    $        0    $        0     $        0
                             ----------   ----------    ----------    ----------    ----------     ----------
Total Operating Expenses     $1,335,713   $    3,894    $1,399,083    $    4,079    $1,304,701     $    3,804

 Reserves                    $        0   $        0    $        0    $        0    $        0     $        0
                             ----------   ----------    ----------    ----------    ----------     ----------
Net Income                   $1,013,367   $    2,954    $ 960,688     $    2,801    $ 939,360      $    2,739
                             ----------   ----------    ----------    ----------    ----------     ----------




                                       ANNUALIZED 2003
                                 -----------------------
                                       PROJECTION                       AAA PROJECTION
                                 -----------------------     ----------------------------------
          DESCRIPTION              TOTAL       PER UNIT        TOTAL       PER UNIT        %
    ------------------------     ----------   ----------     ----------   ----------     ------
    Revenues
     Rental Income               $2,491,631    $   7,264     $2,543,280    $   7,415      100.0%

     Vacancy                     $ 304,817     $      889    $ 305,194     $      890      12.0%
     Credit Loss/Concessions     $ 175,739     $      512    $ 152,597     $      445       6.0%
                                 ----------    ----------    ----------    ----------     ------
      Subtotal                   $ 480,556     $    1,401    $ 457,790     $    1,335      18.0%

     Laundry Income              $   19,521    $       57    $   20,580    $       60       0.8%
     Garage Revenue              $        0    $        0    $        0    $        0       0.0%
     Other Misc. Revenue         $ 310,952     $      907    $ 274,400     $      800      10.8%
                                 ----------    ----------    ----------    ----------     ------
      Subtotal Other Income      $ 330,473     $      963    $ 294,980     $      860      11.6%
                                 ----------    ----------    ----------    ----------     ------
    Effective Gross Income       $2,341,548    $    6,827    $2,380,470    $    6,940     100.0%

    Operating Expenses
     Taxes                       $   155,319   $       453   $   157,780   $       460      6.6%
       Insurance                      $ 109,663       $      320     $ 109,760       $      320          4.6%
       Utilities                      $ 200,704       $      585     $ 205,800       $      600          8.6%
       Repair & Maintenance           $   60,981      $      178     $   68,600      $      200          2.9%
       Cleaning                       $ 178,503       $      520     $ 137,200       $      400          5.8%
       Landscaping                    $ 209,927       $      612     $ 154,350       $      450          6.5%
       Security                       $        0      $        0     $        0      $        0          0.0%
       Marketing & Leasing            $   56,332      $      164     $   54,880      $      160          2.3%
       General Administrative         $ 270,219       $      788     $ 343,000       $    1,000         14.4%
       Management                     $   89,527      $      261     $ 107,121       $      312          4.5%
       Miscellaneous                  $        0      $        0     $        0      $        0          0.0%
                                      ----------      ----------     ----------      ----------        ------
      Total Operating Expenses        $1,331,173      $    3,881     $1,338,491      $    3,902         56.2%

       Reserves                       $        0      $        0     $ 171,500       $      500         12.8%
                                      ----------      ----------     ----------      ----------        ------
      Net Income                      $1,010,375      $    2,946     $ 870,478       $    2,538         36.6%
                                      ----------      ----------     ----------      ----------        ------




REVENUES AND EXPENSES

The subject's revenue and expense projections are displayed on the previous chart. Rental income is based on
the market analysis previously discussed. Other income consists of forfeited deposits, laundry income, late rent
payments, month to month fees, pet fees, vending machine revenue, etc.

We forecasted the property's annual operating expenses after reviewing its historical performance at the subject
property. We analyzed each item of expense and attempted to forecast amounts a typical informed investor
would consider reasonable.

VACANCY AND COLLECTION LOSS

An investor is primarily interested in the annual revenue an income property is likely to produce over a specified
period of time, rather than the income it could produce if it were always 100% occupied and all tenants were
paying their rent in full and on time. An investor normally expects some income loss as tenants vacate, fail to pay
rent, or pay their rent late. We have projected a stabilized vacancy and collection loss rate of 18% based on the
subject's historical performance, as well as the anticipated future market conditions.
AMERICAN APPRAISAL ASSOCIATES, INC. INCOME CAPITALIZATION APPROACH PAGE
29
REGENCY OAKS, FERN PARK, FLORIDA

RESERVES FOR REPLACEMENT

"Reserves for replacements" is a contingency account allocated to the expenses of the property to provide for
replacement of short-lived items and for unforeseen necessary capital expenditures. We have utilized the Korpacz
Real Estate Investor Survey of the national apartment market, which reports a range of replacement reserves
between $150 and $400 per unit. For purposes of this analysis, we have included an allowance of $500 per unit
for reserves for replacement.

CAPITAL EXPENDITURES

Capital expenditures represent expenses for immediate repair or replacement of items that have average to long
lives. Based on our inspection of the property as well as discussions with property management personnel, there
are no major items remaining in need of repair or replacement that would require an expense beyond our reserves
for replacement. Therefore an allowance of $500 per unit should be satisfactory in our reserves for replacement
to cover future capital expenditures.

DISCOUNTED CASH FLOW ANALYSIS

As the subject is a multi-tenant income property, the Discounted Cash Flow Method is considered appropriate.
This method is especially meaningful in that it isolates the timing of the annual cash flows and discounts them,
along with the expected equity reversion, to a present value. The present value of the cash flow is added to the
present value of the reversion, resulting in a total property value.

INVESTMENT CRITERIA

Appropriate investment criteria will be derived for the subject based upon analysis of comparable sales and a
survey of real estate investors. The following table summarizes the findings of Korpacz National Investor Survey
for the most recent period.

                              KORPACZ NATIONAL INVESTOR SURVEY
                                      3RD QUARTER 2003
                                NATIONAL APARTMENT MARKET

                                                  CAPITALIZATION RATES
                                            ---------------------------------
                                               GOING-IN          TERMINAL
                                            --------------    ---------------
                                             Low      High     Low      High
                                            -----    -----    -----    ------
                               Range        5.50%    9.50%    6.00%    10.00%
                               Average           7.61%             8.14%
AMERICAN APPRAISAL ASSOCIATES, INC. INCOME CAPITALIZATION APPROACH PAGE
30
REGENCY OAKS, FERN PARK, FLORIDA

                                          SUMMARY OF OVERALL
                                          CAPITALIZATION RATES

                         COMP. NO.       SALE DATE       OCCUP.      PRICE/UNIT       OAR
                         ---------       ---------       ------      ----------      ------
                            I-1            May-03          94%        $ 39,815       10.19%
                            I-2            Nov-02          95%        $ 34,797        9.60%
                            I-3            Sep-02          95%        $ 36,685        9.54%
                            I-4            May-01          90%        $ 38,125       10.98%
                            I-5            Aug-01          95%        $ 43,000        8.98%
                                                                           High      10.98%
                                                                            Low       8.98%
                                                                        Average       9.86%




Based on this information, we have concluded the subject's overall capitalization rate should be 9.75%. The
terminal capitalization rate is applied to the net operating income estimated for the year following the end of the
holding period. Based on the concluded overall capitalization rate, the age of the property and the surveyed
information, we have concluded the subject's terminal capitalization rate to be 10.25%. Finally, the subject's
discount rate or yield rate is estimated based on the previous investor survey and an examination of returns
available on alternative investments in the market. Based on this analysis, the subject's discount rate is estimated
to be 12.00%.

HOLDING PERIOD

The survey of investors indicates that most investors are completing either 10-year cash flows or extending the
analysis to the end of the lease if it is more than 10-years. A 10-year period has been used in the analysis of the
subject with the eleventh year stabilized NOI used to determine the reversion.

SELLING COSTS

Sales of similar size properties are typically accomplished with the aid of a broker and will also incur legal and
other transaction related cost. Based on our survey of brokers and a review of institutional investor projections,
an allowance of 2.00% of the sale amount is applied.

DISCOUNTED CASH FLOW CONCLUSION

Discounting the annual cash flows and the equity reversion at the selected rate of 12.00% indicates a value of
$8,700,000. In this instance, the reversion figure contributes approximately 36% of the total value. Investors
surveyed for this assignment indicated they
AMERICAN APPRAISAL ASSOCIATES, INC. INCOME CAPITALIZATION APPROACH PAGE
31
REGENCY OAKS, FERN PARK, FLORIDA

would prefer to have the cash flow contribute anywhere from 50% to 60%. Overall, the blend seems reasonable.
The cash flow and pricing matrix are located as follow.

DISCOUNTED CASH FLOW ANALYSIS

                                            REGENCY OAKS

                YEAR                       APR-2004        APR-2005        APR-2006       APR-2007        APR-2008
            FISCAL YEAR                       1               2               3              4               5
-----------------------------------       ----------      ----------      ----------     ----------      ----------
REVENUE
 Base Rent                                $2,543,280      $2,606,862      $2,672,034     $2,738,834      $2,807,305

 Vacancy                                  $ 305,194       $ 312,823       $ 320,644      $ 328,660       $ 336,877
 Credit Loss                              $ 152,597       $ 156,412       $ 160,324      $ 164,330       $ 168,438
 Concessions                              $        0      $        0      $        0     $        0      $        0
                                          ----------      ----------      ----------     ----------      ----------
  Subtotal                                $ 457,790       $ 469,235       $ 480,966      $ 492,990       $ 505,315

 Laundry Income                           $   20,580      $   21,095      $   21,622     $   22,162      $   22,716
 Garage Revenue                           $        0      $        0      $        0     $        0      $        0
 Other Misc. Revenue                      $ 274,400       $ 281,260       $ 288,292      $ 295,499       $ 302,886
                                          ----------      ----------      ----------     ----------      ----------
  Subtotal Other Income                   $ 294,980       $ 302,355       $ 309,913      $ 317,661       $ 325,603
                                          ----------      ----------      ----------     ----------      ----------
EFFECTIVE GROSS INCOME                    $2,380,470      $2,439,981      $2,500,981     $2,563,505      $2,627,593

OPERATING EXPENSES:
 Taxes                                    $ 157,780       $ 162,513       $ 167,389      $ 172,410       $ 177,583
 Insurance                                $ 109,760       $ 113,053       $ 116,444      $ 119,938       $ 123,536
 Utilities                                $ 205,800       $ 211,974       $ 218,333      $ 224,883       $ 231,630
 Repair & Maintenance                     $   68,600      $   70,658      $   72,778     $   74,961      $   77,210
 Cleaning                                 $ 137,200       $ 141,316       $ 145,555      $ 149,922       $ 154,420
 Landscaping                              $ 154,350       $ 158,981       $ 163,750      $ 168,662       $ 173,722
 Security                                 $        0      $        0      $        0     $        0      $        0
 Marketing & Leasing                      $   54,880      $   56,526      $   58,222     $   59,969      $   61,768
 General Administrative                   $ 343,000       $ 353,290       $ 363,889      $ 374,805       $ 386,050
 Management                               $ 107,121       $ 109,799       $ 112,544      $ 115,358       $ 118,242
 Miscellaneous                            $        0      $        0      $        0     $        0      $        0
                                          ----------      ----------      ----------     ----------      ----------
TOTAL OPERATING EXPENSES                  $1,338,491      $1,378,110      $1,418,905     $1,460,909      $1,504,159

 Reserves                                 $ 171,500       $ 176,645       $ 181,944      $ 187,403       $ 193,025
                                          ----------      ----------      ----------     ----------      ----------
NET OPERATING INCOME                      $ 870,478       $ 885,226       $ 900,132      $ 915,194       $ 930,409
                                          ==========      ==========      ==========     ==========      ==========
 Operating Expense Ratio (% of EGI)             56.2%           56.5%           56.7%          57.0%           57.2%
 Operating Expense Per Unit               $    3,902      $    4,018      $    4,137     $    4,259      $    4,385




                YEAR                       APR-2010        APR-2011        APR-2012       APR-2013        APR-2014
            FISCAL YEAR                       7               8               9              10              11
-----------------------------------       ----------      ----------      ----------     ----------      ----------
REVENUE
 Base Rent                                $2,949,425      $3,023,161      $3,098,740     $3,176,208      $3,255,613

 Vacancy                                  $ 353,931       $ 362,779       $ 371,849      $ 381,145       $ 390,674
 Credit Loss                              $ 176,966       $ 181,390       $ 185,924      $ 190,572       $ 195,337
 Concessions                              $        0      $        0      $        0     $        0      $        0
                                          ----------      ----------      ----------     ----------      ----------
  Subtotal                                $ 530,897       $ 544,169       $ 557,779      $ 571,717       $ 586,010

 Laundry Income                           $   23,866      $   24,463      $   25,075     $   25,702      $   26,344
 Garage Revenue                           $        0      $        0      $        0     $        0      $        0
 Other Misc. Revenue                      $ 318,220       $ 326,175       $ 334,330      $ 342,688       $ 351,255
                                          ----------      ----------      ----------     ----------      ----------
  Subtotal Other Income                   $ 342,086       $ 350,639       $ 359,404      $ 368,390       $ 377,599
                                          ----------      ----------      ----------     ----------      ----------
EFFECTIVE GROSS INCOME                  $2,760,615       $2,829,630     $2,900,371       $2,972,880    $3,047,202

OPERATING EXPENSES:
 Taxes                                  $ 188,398        $ 194,049      $ 199,871        $ 205,867     $ 212,043
 Insurance                              $ 131,059        $ 134,991      $ 139,041        $ 143,212     $ 147,508
 Utilities                              $ 245,736        $ 253,108      $ 260,701        $ 268,522     $ 276,578
 Repair & Maintenance                   $   81,912       $   84,369     $   86,900       $   89,507    $   92,193
 Cleaning                               $ 163,824        $ 168,739      $ 173,801        $ 179,015     $ 184,385
 Landscaping                            $ 184,302        $ 189,831      $ 195,526        $ 201,392     $ 207,433
 Security                               $        0       $        0     $        0       $        0    $        0
 Marketing & Leasing                    $   65,530       $   67,495     $   69,520       $   71,606    $   73,754
 General Administrative                 $ 409,560        $ 421,847      $ 434,502        $ 447,537     $ 460,963
 Management                             $ 124,228        $ 127,333      $ 130,517        $ 133,780     $ 137,124
 Miscellaneous                          $        0       $        0     $        0       $        0    $        0
                                        ----------       ----------     ----------       ----------    ----------
TOTAL OPERATING EXPENSES                $1,594,548       $1,641,763     $1,690,379       $1,740,438    $1,791,982

Reserves                                $   204,780      $   210,923    $   217,251      $   223,769   $   230,482

NET OPERATING INCOME                    $ 961,287        $ 976,944      $ 992,741        $1,008,674    $1,024,738
                                        ----------       ----------     ----------       ----------    ----------
Operating Expense Ratio (% of EGI)            57.8%            58.0%          58.3%            58.5%         58.8%
Operating Expense Per Unit              $    4,649       $    4,786     $    4,928       $    5,074    $    5,224



             Estimated Stabilized NOI        $870,478        Sales Expense Rate         2.00%
             Months to Stabilized                   1        Discount Rate             12.00%
             Stabilized Occupancy                88.0%       Terminal Cap Rate         10.25%




                                     "DCF" VALUE ANALYSIS

           Gross Residual Sale Price    $9,997,447    Deferred Maintenance            $        0
             Less: Sales Expense        $ 199,949     Add: Excess Land                $        0
                                        ----------    Other Adjustments               $        0
           Net Residual Sale Price      $9,797,498                                    ----------
           PV of Reversion              $3,154,532    Value Indicated By "DCF"        $8,673,612
           Add: NPV of NOI              $5,519,080          Rounded                   $8,700,000
                                        ----------
           PV Total                     $8,673,612




                              "DCF" VALUE SENSITIVITY TABLE

                                                  DISCOUNT RATE
                             --------------------------------------------------------------
         TOTAL VALUE           11.50%       11.75%        12.00%      12.25%       12.50%
     --------------------    ----------   ----------   ----------   ----------   ----------
                    9.75%    $9,113,751   $8,973,071   $8,835,383   $8,700,612   $8,568,686
                   10.00%    $9,027,049   $8,888,290   $8,752,476   $8,619,533   $8,489,391
     TERMINAL CAP 10.25%     $8,944,577   $8,807,645   $8,673,612   $8,542,408   $8,413,963
     RATE          10.50%    $8,866,032   $8,730,839   $8,598,504   $8,468,957   $8,342,128
                   10.75%    $8,791,141   $8,657,607   $8,526,890   $8,398,921   $8,273,633
AMERICAN APPRAISAL ASSOCIATES, INC. INCOME CAPITALIZATION APPROACH PAGE
32
REGENCY OAKS, FERN PARK, FLORIDA

INCOME LOSS DURING LEASE-UP

The subject is currently near or at a stabilized condition. Therefore, there is no income loss during lease-up at the
subject property.

CONCESSIONS

Concessions have historically not been utilized at the subject property or in the subject's market. Therefore, no
adjustment was included for concessions.

DIRECT CAPITALIZATION METHOD

After having projected the income and expenses for the property, the next step in the valuation process is to
capitalize the net income into an estimate of value. The selected overall capitalization rate ("OAR") covers both
return on and return of capital. It is the overall rate of return an investor expects.

After considering the market transactions and the investor surveys, we previously conclude that an overall rate of
9.75% percent is applicable to the subject. The results of our direct capitalization analysis are as follows:
AMERICAN APPRAISAL ASSOCIATES, INC. INCOME CAPITALIZATION APPROACH PAGE
33
REGENCY OAKS, FERN PARK, FLORIDA

                                      REGENCY OAKS

                                                  TOTAL     PER SQ. FT.   PER UNIT    %OF EGI
  -------------------------------------------------------------------------------------------
  REVENUE
     Base Rent                                 $2,543,280     $ 7.43     $    7,415

    Less: Vacancy & Collection Loss   18.00%      $   457,790   $ 1.34     $    1,335

    Plus: Other Income
      Laundry Income                              $   20,580     $ 0.06     $       60     0.86%
      Garage Revenue                              $        0     $ 0.00     $        0     0.00%
      Other Misc. Revenue                         $ 274,400      $ 0.80     $      800    11.53%
                                                  ---------------------------------------------
        Subtotal Other Income                     $ 294,980      $ 0.86     $      860    12.39%

  EFFECTIVE GROSS INCOME                          $2,380,470    $ 6.96     $    6,940

  OPERATING EXPENSES:
     Taxes                                        $   157,780   $   0.46   $      460     6.63%
     Insurance                                    $   109,760   $   0.32   $      320     4.61%
     Utilities                                    $   205,800   $   0.60   $      600     8.65%
     Repair & Maintenance                         $    68,600   $   0.20   $      200     2.88%
     Cleaning                                     $   137,200   $   0.40   $      400     5.76%
     Landscaping                                  $   154,350   $   0.45   $      450     6.48%
     Security                                     $         0   $   0.00   $        0     0.00%
     Marketing & Leasing                          $    54,880   $   0.16   $      160     2.31%
     General Administrative                       $   343,000   $   1.00   $    1,000    14.41%
     Management                           4.50%   $   107,121   $   0.31   $      312     4.50%
     Miscellaneous                                $         0   $   0.00   $        0     0.00%

  TOTAL OPERATING EXPENSES                        $1,338,491    $ 3.91     $    3,902    56.23%

    Reserves                                      $   171,500   $ 0.50     $      500     7.20%

                                                  ---------------------------------------------
  NET OPERATING INCOME                            $ 870,478      $ 2.54     $    2,538    36.57%

    "GOING IN" CAPITALIZATION RATE                      9.75%

    VALUE INDICATION                              $8,927,984    $26.10     $   26,029

    "AS IS" VALUE INDICATION
       (DIRECT CAPITALIZATION APPROACH)           $8,927,984

                                ROUNDED           $8,900,000    $26.02     $   25,948
AMERICAN APPRAISAL ASSOCIATES, INC. INCOME CAPITALIZATION APPROACH PAGE
34
REGENCY OAKS, FERN PARK, FLORIDA

                      DIRECT CAPITALIZATION VALUE SENSITIVITY TABLE

                      CAP RATE         VALUE         ROUNDED    $/UNIT      $/SF
                      -----------------------------------------------------------
                       9.00%         $9,671,983    $9,700,000   $28,280    $28.36
                       9.25%         $9,410,578    $9,400,000   $27,405    $27.48
                       9.50%         $9,162,931    $9,200,000   $26,822    $26.89
                       9.75%         $8,927,984    $8,900,000   $25,948    $26.02
                      10.00%         $8,704,785    $8,700,000   $25,364    $25.43
                      10.25%         $8,492,473    $8,500,000   $24,781    $24.85
                      10.50%         $8,290,271    $8,300,000   $24,198    $24.26




CONCLUSION BY THE DIRECT CAPITALIZATION METHOD

Applying the capitalization rate to our estimated NOI results in an estimated value of $8,900,000.

CORRELATION AND CONCLUSION BY THE INCOME APPROACH

The two methods used to estimate the market value of the subject property by the income approach resulted in
the following indications of value:

                              Discounted Cash Flow Analysis            $8,700,000
                              Direct Capitalization Method             $8,900,000




Giving consideration to the indicated values provided by both techniques, we have concluded the estimated value
by the income capitalization approach to be $8,800,000.
AMERICAN APPRAISAL ASSOCIATES, INC. RECONCILIATION AND CONCLUSION PAGE
35
REGENCY OAKS, FERN PARK, FLORIDA

                                 RECONCILIATION AND CONCLUSION

This appraisal was made to express an opinion as of the Market Value of the fee simple estate in the property.

AS IS MARKET VALUE OF THE FEE SIMPLE ESTATE

                                Cost Approach                        Not Utilized
                                Sales Comparison Approach             $9,200,000
                                Income Approach                       $8,800,000
                                Reconciled Value                      $8,800,000




The Income Capitalization Method is considered a reliable indicator of value. Income and expenses were
estimated and projected based on historical operating statements and market oriented expenses. This method is
primarily used by investors in their underwriting analysis. Furthermore, there was good support for an overall rate
in the Direct Capitalization Method.

The Sales Comparison Approach to value supported the value conclusion by the Income Approach and was
given secondary consideration. Investment-grade, income-producing properties such as the subject are not
typically traded based on cost. Therefore, the Cost Approach has not been considered in our valuation.

FINAL VALUE - FEE SIMPLE ESTATE

Based on the investigation and premise outlined, it is our opinion that as of December 9, 2003 the market value
of the fee simple estate in the property is:

$8,800,000
AMERICAN APPRAISAL ASSOCIATES, INC. ADDENDA
REGENCY OAKS, FERN PARK, FLORIDA

                               ADDENDA
AMERICAN APPRAISAL ASSOCIATES, INC. EXHIBIT A
REGENCY OAKS, FERN PARK, FLORIDA

                                EXHIBIT A
                          SUBJECT PHOTOGRAPHS
AMERICAN APPRAISAL ASSOCIATES, INC.                                 EXHIBIT A
REGENCY OAKS, FERN PARK, FLORIDA

                             SUBJECT PHOTOGRAPHS

        [PICTURE]                                       [PICTURE]

APARTMENT BUILDING - FRONT VIEW                APARTMENT BUILDING - SIDE VIEW

        [PICTURE]                                       [PICTURE]

     COURTYARD VIEW                          APARTMENT BUILDING - PARKING VIEW

        [PICTURE]                                       [PICTURE]

        CLUBHOUSE                              EXTERIOR VIEW - COVERED PARKING
      AMERICAN APPRAISAL ASSOCIATES, INC.                                   EXHIBIT A
      REGENCY OAKS, FERN PARK, FLORIDA

                                   SUBJECT PHOTOGRAPHS

              [PICTURE]                                       [PICTURE]

             SPORT COURTS                                   SWIMMING POOL

              [PICTURE]                                       [PICTURE]

             PICNIC AREA                          INTERIOR VACANT UNIT - LIVING ROOM

              [PICTURE]                                       [PICTURE]




INTERIOR VACANT UNIT - KITCHEN INTERIOR VACANT UNIT - BATHROOM
AMERICAN APPRAISAL ASSOCIATES, INC. EXHIBIT B
REGENCY OAKS, FERN PARK, FLORIDA

                              EXHIBIT B
                     SUMMARY OF RENT COMPARABLES
                    AND PHOTOGRAPH OF COMPARABLES
AMERICAN APPRAISAL ASSOCIATES, INC. EXHIBIT B
REGENCY OAKS, FERN PARK, FLORIDA

                 PHOTOGRAPHS OF COMPARABLE SALE PROPERTIES

                COMPARABLE I-1                       COMPARABLE I-2           COMPARABLE I-3
   EMPIRIAN (FORMERLY KNOWN AS EMERALD BAY)      SEDGEFIELD APARTMENTS           LA ALOMA
             5 Autumn Breeze Way                 110 Sedgefield Circle      3040 Aloma Avenue
               Winter Park, FL                       Winter Park, FL         Winter Park, FL

                  [PICTURE]                             [PICTURE]               [PICTURE]

               COMPARABLE I-4                         COMPARABLE I-5
         COURTYARD AT WINTER PARK             THE ASHLEY OF SPRING VALLEY
               1695 Lee Road                        693 S Wymore Road
              Winter Park, FL                     Altamonte Springs, FL

                  [PICTURE]                             [PICTURE]
AMERICAN APPRAISAL ASSOCIATES, INC. EXHIBIT B
REGENCY OAKS, FERN PARK, FLORIDA

SUMMARY OF COMPARABLE RENTAL PROPERTIES

                                                                                                     COMPA
            DESCRIPTION                              SUBJECT                                           R -
---------------------------------------------------------------------------------------------------------
  Property Name                   Regency Oaks                                     Howel Branch Station
  Management Company              AIMCO                                            Brighton Residential
LOCATION:
  Address                         200 Maltese Circle                               416 Banyon Tree Circle
  City, State                     Fern Park, Florida                               Maitland, FL
  County                          Seminole                                         Seminole
  Proximity to Subject                                                             Same neighborhood
PHYSICAL CHARACTERISTICS:
  Net Rentable Area (SF)          342,080                                          349,530
  Year Built                      1969                                             1969
  Effective Age                   25                                               34
  Building Structure Type         Brick and Stucco                                 Brick
  Parking Type (Gr., Cov., etc.) Open, Plus some carports                          Open
  Number of Units                 343                                              366
  Unit Mix:                             Type            Unit   Qty.    Mo. Rent         Type            Un
                                   1 Studio              589     32     $ 642       1 Studio             5
                                   2 1Br/1Ba             719     93     $ 641       2 1Br/1Ba            6
                                   3 2Br/1.5Ba           984    112     $ 638       2 1Br/1Ba            7
                                   4 2Br/2Ba           1,061     57     $ 955       3 2Br/1Ba          1,0
                                   5 2Br/2.5Ba         1,800     25     $ 920       4 2Br/2Ba          1,1
                                   6 3Br/2Ba           1,320     12     $ 900       5 2Br/2Ba          1,1
                                   7 3Br/2.5Ba         2,070     12     $1,002      6 3Br/2Ba          1,3
                                                                                    6 3Br/2Ba          1,4

  Average Unit Size (SF)          997                                                971
  Unit Breakdown:                   Efficiency                 2-Bedroom               Efficiency
                                    1-Bedroom                  3-Bedroom               1-Bedroom
CONDITION:                                                                           Average
APPEAL:                                                                              Average
AMENITIES:
  Unit Amenities                            Attach. Garage         Vaulted Ceiling         Attach. Garage
                                        X   Balcony                                    X   Balcony
                                            Fireplace                                      Fireplace
                                            Cable TV Ready                                 Cable TV Ready
  Project Amenities                     X   Swimming Pool                              X   Swimming Pool
                                            Spa/Jacuzzi        X   Car Wash                Spa/Jacuzzi
                                            Basketball Court   X   BBQ Equipment           Basketball Court
                                            Volleyball Court       Theater Room            Volleyball Court
                                            Sand Volley Ball   X   Meeting Hall            Sand Volley Ball
                                        X   Tennis Court           Secured Parking         Tennis Court
                                            Racquet Ball       X   Laundry Room            Racquet Ball
                                            Jogging Track      X   Business Office         Jogging Track
                                            Gym Room           X   Freshwater Lake         Gym Room
                                        X   Basketball Court                               Basketball Court
                                        X   Picnic Area                                    Picnic Area
OCCUPANCY:                        92%                                                86%
LEASING DATA:
  Available Leasing Terms         6 to 12 months                                     6 to 12 months
  Concessions                                                                        On specified units onl
  Pet Deposit                                                                        No Pets Allowed
  Utilities Paid by Tenant:          X    Electric             X   Natural Gas         X   Electric
                                     X    Water                X   Trash               X   Water
  Confirmation                    Manager                                            Leasing Agent
  Telephone Number                813-933-2449                                       407-671-7200
NOTES:                                                                               Attractive apartment c
                                                                                     in subject's neighborh
                                                                                     condition, good curb a
                                                                                     to the subject propert

  COMPARISON TO SUBJECT:                                                             Superior

                                                     COMPARABLE                                     COMPA
           DESCRIPTION                                 R - 2                                          R -
---------------------------------------------------------------------------------------------------------
  Property Name                   Sandpiper                                        Semoran North
  Management Company              Community Management                             Calex Realty Group
LOCATION:
  Address                         709 Sandpiper Lane                               1743 Semoran North Cir
  City, State                     Casselberry, FL                                  Winter Park, FL
  County                           Seminole                                              Seminole
  Proximity to Subject             Same neighborhood                                     Same neighborhood
PHYSICAL CHARACTERISTICS:
  Net Rentable Area (SF)           178,752                                               381,408
  Year Built                       1974                                                  1964
  Effective Age                    29                                                    30
  Building Structure Type          Stucco                                                Stucco
  Parking Type (Gr., Cov., etc.)   Open                                                  Open, plus some carpor
  Number of Units                  196                                                   348
  Unit Mix:                             Type                Unit        Qty.       Mo.        Type
                                    1 1Br/1Ba                560         80       $495    1 1Br/1Ba
                                    2 1Br/1Ba                560         80       $495    2 1Br/1Ba
                                    3 2Br/1.5Ba            1,024         18       $680    3 2Br/1Ba
                                    4 2Br/2Ba              1,076         36       $705    4 2Br/2Ba
                                    5 2Br/2Ba              1,146         24       $745    5 2Br/2Ba
                                    6 3Br/2Ba              1,281         20       $805    6 3Br/2Ba
                                    7 3Br/2Ba              1,315         18       $845    7 3Br/2Ba

  Average Unit Size (SF)           810
  Unit Breakdown:                    Efficiency           2-Bedroom                           Efficiency
                                     1-Bedroom            3-Bedroom                           1-Bedroom
CONDITION:                         Slightly Superior                                     Slightly Superior
APPEAL:                            Good                                                  Slightly Superior
AMENITIES:
  Unit Amenities                             Attach. Garage           Vaulted Ceiling              Attach. Garage
                                         X   Balcony                                           X   Balcony
                                             Fireplace                                             Fireplace
                                             Cable TV Ready                                        Cable TV Ready
  Project Amenities                      X   Swimming Pool                                     X   Swimming Pool
                                             Spa/Jacuzzi              Car Wash                     Spa/Jacuzzi
                                             Basketball Court         BBQ Equipment                Basketball Cour
                                             Volleyball Court         Theater Room                 Volleyball Cour
                                             Sand Volley Ball         Meeting Hall                 Sand Volley Bal
                                             Tennis Court             Secured Parking              Tennis Court
                                             Racquet Ball       X     Laundry Room                 Racquet Ball
                                             Jogging Track            Business Office              Jogging Track
                                         X   Gym Room                 Freshwater Lake          X   Gym Room
                                             Basketball Court                                      Basketball Cour
                                             Picnic Area                                           Picnic Area
OCCUPANCY:                         90%                                                   N/A
LEASING DATA:
  Available Leasing Terms          6 to 13 months                                        6 to 12 months
  Concessions                      On specified units only                               One Month Free Rent
  Pet Deposit                      Yes                                                   Yes
  Utilities Paid by Tenant:            X  Electric          X    Natural Gas                 X Electric
                                       X  Water             X    Trash                       X Water
  Confirmation                     Leasing Agent                                         Leasing Agent
  Telephone Number                 407-831-6866                                          407-671-5957
NOTES:                             Nearby apartment community, but generally             Nearby apartment commu
                                   inferior location along secondary street              neighborhood in a simi
                                   with limited curb appear and in similar to            area just off Rt 436.
                                   inferior condition compared to the subject            terms of overall curb
                                   property. Overall, considered to be an                Also slightly superior
                                   inferior apartment community.

  COMPARISON TO SUBJECT:           Superior                                              Superior

                                                    COMPARABLE                                       COMPA
            DESCRIPTION                               R - 4                                            R -
---------------------------------------------------------------------------------------------------------
  Property Name                   Empiriam (Former Emerald Bay)                    Birchwood Landing
  Management Company              Empire Equity Group                              Casselberry Equity
LOCATION:
  Address                         5 Autumn Breeze Way                              1485 Ash Circle
  City, State                     Winter Park, FL                                  Casselberry, FL
  County                          Seminole                                         Seminole
  Proximity to Subject            Same neighborhood                                Same neighborhood
PHYSICAL CHARACTERISTICS:
  Net Rentable Area (SF)          427,680                                          114,080
  Year Built                      1972                                             1975
  Effective Age                   25                                               28
  Building Structure Type         Stucco                                           Stucco
  Parking Type (Gr., Cov., etc.) Open, plus some carports                          Open
  Number of Units                 432                                              184
  Unit Mix:                            Type            Unit     Qty.      Mo.           Type
                                  2 1Br/1Ba             720     149      $579       1 1Br/1Ba
                                  4 2Br/2Ba             976     132      $610       2 1Br/1Ba
                                  6 3Br/2Ba           1,270     151      $815       3 2Br/1Ba

  Average Unit Size (SF)           990
  Unit Breakdown:               Efficiency             2-Bedroom                Efficiency
                                1-Bedroom              3-Bedroom                1-Bedroom
CONDITION:                    Average                                        Average
APPEAL:                       Average                                        Average
AMENITIES:
  Unit Amenities                    Attach. Garage         Vaulted Ceiling             Attach. Garage
                                X   Balcony                                        X   Balcony
                                    Fireplace                                          Fireplace
                                    Cable TV Ready                                     Cable TV Ready
  Project Amenities             X   Swimming Pool                                  X   Swimming Pool
                                    Spa/Jacuzzi        X   Car Wash                    Spa/Jacuzzi
                                    Basketball Court       BBQ Equipment               Basketball Court
                                    Volleyball Court       Theater Room                Volleyball Court
                                    Sand Volley Ball       Meeting Hall                Sand Volley Ball
                                X   Tennis Court           Secured Parking             Tennis Court
                                    Racquet Ball       X   Laundry Room                Racquet Ball
                                    Jogging Track      X   Business Office             Jogging Track
                                X   Gym Room               Freshwater Lake             Gym Room
                                X   Basketball Court                                   Basketball Court
                                X   Picnic Area                                        Picnic Area
OCCUPANCY:                    N/A                                            N/A
LEASING DATA:
  Available Leasing Terms     6 to 12 months                                 6 to 12 months
  Concessions                 No                                             $299 Move-in special
  Pet Deposit                 Yes                                            Yes
  Utilities Paid by Tenant:      X  Electric           X   Natural Gas           X Electric
                                 X  Water              X   Trash                 X Water
  Confirmation                Leasing Agent                                  Leasing Agent
  Telephone Number            407-671-7722                                   407-657-6716
NOTES:                        Nearby apartment community located in same     Located along Rt 436 v
                              neighborhood in a similar retail/commercial    property. Most similar
                              area just off Rt 436. Superior to subject in   Also very similar in t
                              terms of overall curb appeal and condition.    appeal and condition.
                              Also slightly superior location.

  COMPARISON TO SUBJECT:      Superior                                       Similar
AMERICAN APPRAISAL ASSOCIATES, INC. EXHIBIT B
REGENCY OAKS, FERN PARK, FLORIDA

                PHOTOGRAPHS OF COMPARABLE RENT PROPERTIES

              COMPARABLE R-1             COMPARABLE R-2          COMPARABLE R-3

           HOWEL BRANCH STATION            SANDPIPER              SEMORAN NORTH
          416 Banyon Tree Circle       709 Sandpiper Lane   1743 Semoran North Circle
              Maitland, FL              Casselberry, FL           Winter Park, FL

                  N/A                     [PICTURE]                  N/A

              COMPARABLE R-4             COMPARABLE R-5

       EMPIRIAM (FORMER EMERALD BAY)   BIRCHWOOD LANDING
           5 Autumn Breeze Way          1485 Ash Circle
             Winter Park, FL            Casselberry, FL

                 [PICTURE]                [PICTURE]
AMERICAN APPRAISAL ASSOCIATES, INC. EXHIBIT C
REGENCY OAKS, FERN PARK, FLORIDA

                               EXHIBIT C
                  ASSUMPTIONS AND LIMITING CONDITIONS

                                 (3 PAGES)
AMERICAN APPRAISAL ASSOCIATES, INC. EXHIBIT C
REGENCY OAKS, FERN PARK, FLORIDA

No responsibility is assumed for matters legal in nature. No investigation has been made of the title to or any
liabilities against the property appraised. In this appraisal, it is presumed that, unless otherwise noted, the owner's
claim is valid, the property rights are good and marketable, and there are no encumbrances which cannot be
cleared through normal processes.

To the best of our knowledge, all data set forth in this report are true and accurate. Although gathered from
reliable sources, no guarantee is made nor liability assumed for the accuracy of any data, opinions, or estimates
identified as being furnished by others which have been used in formulating this analysis.

Land areas and descriptions used in this appraisal were obtained from public records and have not been verified
by legal counsel or a licensed surveyor.

No soil analysis or geological studies were ordered or made in conjunction with this report, nor were any water,
oil, gas, or other subsurface mineral and use rights or conditions investigated.

Substances such as asbestos, urea-formaldehyde foam insulation, other chemicals, toxic wastes, or other
potentially hazardous materials could, if present, adversely affect the value of the property. Unless otherwise
stated in this report, the existence of hazardous substance, which may or may not be present on or in the
property, was not considered by the appraiser in the development of the conclusion of value. The stated value
estimate is predicated on the assumption that there is no material on or in the property that would cause such a
loss in value. No responsibility is assumed for any such conditions, and the client has been advised that the
appraiser is not qualified to detect such substances, quantify the impact on values, or develop the remedial cost.

No environmental impact study has been ordered or made. Full compliance with applicable federal, state, and
local environmental regulations and laws is assumed unless otherwise stated, defined, and considered in the
report. It is also assumed that all required licenses, consents, or other legislative or administrative authority from
any local, state, or national government or private entity organization either have been or can be obtained or
renewed for any use which the report covers.
AMERICAN APPRAISAL ASSOCIATES, INC. EXHIBIT C
REGENCY OAKS, FERN PARK, FLORIDA

It is assumed that all applicable zoning and use regulations and restrictions have been complied with unless a
nonconformity has been stated, defined, and considered in the appraisal report. Further, it is assumed that the
utilization of the land and improvements is within the boundaries of the property described and that no
encroachment or trespass exists unless noted in the report.

The Americans with Disabilities Act ("ADA") became effective January 26, 1992. We have not made a specific
compliance survey and analysis of this property to determine whether or not it is in conformity with the various
detailed requirements of the ADA. It is possible that a compliance survey of the property together with a detailed
analysis of the requirements of the ADA could reveal that the property is not in compliance with one or more of
the requirements of the act. If so, this fact could have a negative effect on the value of the property. Since we
have no direct evidence relating to this issue, we did not consider the possible noncompliance with the
requirements of ADA in estimating the value of the property.

We have made a physical inspection of the property and noted visible physical defects, if any, in our report. This
inspection was made by individuals generally familiar with real estate and building construction. However, these
individuals are not architectural or structural engineers who would have detailed knowledge of building design and
structural integrity. Accordingly, we do not opine on, nor are we responsible for, the structural integrity of the
property including its conformity to specific governmental code requirements, such as fire, building and safety,
earthquake, and occupancy, or any physical defects which were not readily apparent to the appraiser during the
inspection.

The value or values presented in this report are based upon the premises outlined herein and are valid only for the
purpose or purposes stated.

The date of value to which the conclusions and opinions expressed apply is set forth in this report. The value
opinion herein rendered is based on the status of the national business economy and the purchasing power of the
U.S. dollar as of that date.

Testimony or attendance in court or at any other hearing is not required by reason of this appraisal unless
arrangements are previously made within a reasonable time in advance for
AMERICAN APPRAISAL ASSOCIATES, INC. EXHIBIT C
REGENCY OAKS, FERN PARK, FLORIDA

such testimony, and then such testimony shall be at American Appraisal Associates, Inc.'s, prevailing per diem for
the individuals involved.

Possession of this report or any copy thereof does not carry with it the right of publication. No portion of this
report (especially any conclusion to use, the identity of the appraiser or the firm with which the appraiser is
connected, or any reference to the Appraisal Institute or the designations awarded by this organization) shall be
disseminated to the public through prospectus, advertising, public relations, news, or any other means of
communication without the written consent and approval of American Appraisal Associates, Inc.
AMERICAN APPRAISAL ASSOCIATES, INC. EXHIBIT D
REGENCY OAKS, FERN PARK, FLORIDA

                                 EXHIBIT D
                         CERTIFICATE OF APPRAISER

                                 (1 PAGE)
AMERICAN APPRAISAL ASSOCIATES, INC. EXHIBIT D
REGENCY OAKS, FERN PARK, FLORIDA

                                        CERTIFICATE OF APPRAISER

I certify that, to the best of my knowledge and belief:

The statements of fact contained in this report are true and correct.

The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting
conditions, and represent the unbiased professional analyses, opinions, and conclusions of American Appraisal
Associates, Inc.

American Appraisal Associates, Inc. and I personally, have no present or prospective interest in the property that
is the subject of this report and have no personal interest or bias with respect to the parties involved.

Compensation for American Appraisal Associates, Inc. is not contingent on an action or event resulting from the
analyses, opinions, or conclusions in, or the use of, this report.

The analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with
the requirements of the Uniform Standards of Professional Appraisal Practice and the Code of Professional
Ethics and the Standards of Professional Practice of the Appraisal Institute.

The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly
authorized representatives.

I personally did not inspect the subject property. Alice MacQueen provided significant real property appraisal
assistance in the preparation of this report.

I am currently in compliance with the Appraisal Institute's continuing education requirements.

                                                -s- Frank Fehribach

Frank Fehribach, MAI Managing Principal, Real Estate Group Texas State Certified General Real Estate
Appraiser #TX-1323954-G
AMERICAN APPRAISAL ASSOCIATES, INC. EXHIBIT D
REGENCY OAKS, FERN PARK, FLORIDA

                                        CERTIFICATE OF APPRAISER

I certify that, to the best of my knowledge and belief:

The statements of fact contained in this report are true and correct.

The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting
conditions, and represent the unbiased professional analyses, opinions, and conclusions of American Appraisal
Associates, Inc.

American Appraisal Associates, Inc. and I personally, have no present or prospective interest in the property that
is the subject of this report and have no personal interest or bias with respect to the parties involved.

Compensation for American Appraisal Associates, Inc. is not contingent on an action or event resulting from the
analyses, opinions, or conclusions in, or the use of, this report.

The analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with
the requirements of the Uniform Standards of Professional Appraisal Practice and the Code of Professional
Ethics and the Standards of Professional Practice of the Appraisal Institute.

The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly
authorized representatives.

I personally inspected the subject property and provided significant real property appraisal assistance in the
preparation of this report.

                                                -s- Alice MacQueen

Alice MacQueen Florida Certified General Real Estate Appraiser #RZ0002202
AMERICAN APPRAISAL ASSOCIATES, INC. EXHIBIT E
REGENCY OAKS, FERN PARK, FLORIDA

                                EXHIBIT E
                       QUALIFICATIONS OF APPRAISER

                                 (4 PAGES)
AMERICAN APPRAISAL ASSOCIATES, INC.                                     EXHIBIT E
REGENCY OAKS, FERN PARK, FLORIDA

                                            FRANK A. FEHRIBACH, MAI
                                      MANAGING PRINCIPAL, REAL ESTATE GROUP

POSITION                Frank A. Fehribach is a Managing Principal for the
                        Dallas Real Estate Group of American Appraisal
                        Associates, Inc. ("AAA").

EXPERIENCE

 Valuation              Mr. Fehribach has experience in valuations for resort
                        hotels; Class A office buildings; Class A multifamily
                        complexes; industrial buildings and distribution
                        warehousing; multitract mixed-use vacant land; regional
                        malls; residential subdivision development; and
                        special-purpose properties such as athletic clubs, golf
                        courses, manufacturing facilities, nursing homes, and
                        medical buildings. Consulting assignments include
                        development and feasibility studies, economic model
                        creation and maintenance, and market studies.

                        Mr. Fehribach also has been involved in overseeing
                        appraisal and consulting assignments in Mexico and
                        South America.

 Business               Mr. Fehribach joined AAA as an engagement director in
                        1998. He was promoted to his current position in 1999.
                        Prior to that, he was a manager at Arthur Andersen LLP.
                        Mr. Fehribach has been in the business of real estate
                        appraisal for over ten years.

EDUCATION               University of Texas - Arlington
                         Master of Science - Real Estate

                        University of Dallas
                         Master of Business Administration - Industrial

                        Management
                         Bachelor of Arts - Economics
         AMERICAN APPRAISAL ASSOCIATES, INC.                                       EXHIBIT E
         REGENCY OAKS, FERN PARK, FLORIDA

         STATE CERTIFICATIONS         State of Arizona, Certified General Real Estate
                                      Appraiser, #30828




State of Arkansas, State Certified General Appraiser,
#CG1387N

                                State of Colorado, Certified General Appraiser,
                                                #CG40000445

                                      State of Georgia, Certified General Real Property
                                      Appraiser, #218487

                                      State of Michigan, Certified General Appraiser,
                                      #1201008081

                                      State of Texas, Real Estate Salesman License, #407158
                                      (Inactive)

                                      State of Texas, State Certified General Real Estate
                                      Appraiser, #TX-1323954-G

         PROFESSIONAL                 Appraisal Institute, MAI Designated Member
          AFFILIATIONS                Candidate Member of the CCIM Institute pursuing
                                      Certified Commercial Investment Member (CCIM)
                                      designation

           PUBLICATIONS               "An Analysis of the Determinants of Industrial Property
                                      Valuation," Co-authored with Dr. Ronald C. Rutherford
                                      and Dr. Mark Eakin, The Journal of Real Estate
                                      Research, Vol. 8, No. 3, Summer 1993, p. 365.
AMERICAN APPRAISAL ASSOCIATES, INC.                                  EXHIBIT E
REGENCY OAKS, FERN PARK, FLORIDA

                                         ALICE MACQUEEN




                STATE CERTIFIED GENERAL REAL ESTATE
                             APPRAISER

POSITION                Alice MacQueen is a State Certified General Real Estate
                        Appraiser and principal member of 3P, Inc., a
                        consulting firm with offices in Georgia and Utah.

EXPERIENCE

BUSINESS                Mrs. MacQueen was employed by American Appraisal
                        Associates, Inc., from 1983 until 2003 when she formed
                        3P, Inc.

                        During her 20 year tenure with AAA, Ms. MacQueen held
                        numerous positions within the firm, advancing from the
                        professional staff levels to serve as Regional Director
                        for the Southeastern United States (1987 to 1992) and
                        as National Director of the Real Estate Valuation Group
                        (1992 to 1995). During her later years with the firm,
                        Ms. MacQueen continued to serve as an officer in the
                        company, working as Principal/Vice President actively
                        involved in the valuation of a wide variety of property
                        types, including numerous types of special purpose
                        properties.

                        Prior to joining American Appraisal, Ms. MacQueen was
                        involved in property management for five years and
                        spent an additional five years as an appraiser,
                        consultant and research analyst.

VALUATION               Ms. MacQueen has extensive experience in the appraisal
                        of residential, commercial, industrial and special
                        purpose properties and is annually involved in the
                        valuation of several billion dollars of real property.
                        She has also been involved in land planning analysis
                        for major mixed use developments. Special purpose
                        properties appraised include campgrounds, churches,
                        country clubs and golf courses, data centers, historic
                        landmarks, proprietary cemeteries and schools.
AMERICAN APPRAISAL ASSOCIATES, INC. EXHIBIT E
REGENCY OAKS, FERN PARK, FLORIDA

                              More recently, she has had extensive experience in
                              appraising residential and industrial properties on
                              Indian reservations as was instrumental in developing a
                              major housing study for the Navajo reservation.

                              The purposes of these valuations have included
                              allocation of purchase price, charitable donation,
                              financing, purchase and sale, syndication, and
                              financial reporting.

                              Ms. MacQueen has completed appraisals of commercial and
                              residential real estate. He has also generated
                              discounted cash flow and sensitivity analyses for
                              investment-grade real estate, securitization, and
                              pension funds/insurance industries. Analyses he has
                              performed involve various types of investment- grade
                              real estate throughout the continental United States
                              including apartments, cooperatives, hotels, industrial
                              and research and development parks, office buildings,
                              regional shopping centers, and undeveloped acreage.

                              To date, she has provided appraisal and consulting
                              services in 48 states, Mexico and Puerto Rico.

      EDUCATION               Greenbrier College for Women, Liberal Arts

                              Realtors Institute of Virginia

      VALUATION AND SPECIAL   Ms. MacQueen completes several courses annually as part
       COURSES                of the continuing education requirements of the various
                              states in which she is certified. She also attends real
                              estate and financial industry-related conferences and
                              seminars. In recent years, she prepared background
                              information for HUD pertaining to valuation
                              requirements for Indian lands and presented findings
                              related to housing needs and financing issues on
                              reservations.

      STATE-CERTIFICATED
       GENERAL APPRAISER      Florida, No. RZ0002202, expires 11/30/04

                              Georgia, No. 239776, expires 7/31/04

                              New Mexico, No. 001626, expires 4/30/05

                              North Carolina, No. A5096, expires 6/30/04

                              Utah, No. CG 00057001, expires 7/1/05
AMERICAN APPRAISAL ASSOCIATES, INC.
REGENCY OAKS, FERN PARK, FLORIDA

                      GENERAL SERVICE CONDITIONS
AMERICAN APPRAISAL ASSOCIATES, INC.
REGENCY OAKS, FERN PARK, FLORIDA

                                    GENERAL SERVICE CONDITIONS

The services(s) provided by AAA will be performed in accordance with professional appraisal standards. Our
compensation is not contingent in any way upon our conclusions of value. We assume, without independent
verification, the accuracy of all data provided to us. We will act as an independent contractor and reserve the
right to use subcontractors. All files, workpapers or documents developed by us during the course of the
engagement will be our property. We will retain this data for at least five years.

Our report is to be used only for the specific purpose stated herein; and any other use is invalid. No reliance may
be made by any third party without our prior written consent. You may show our report in its entirety to those
third parties who need to review the information contained herein. No one should rely on our report as a
substitute for their own due diligence. We understand that our reports will be described in public tender offer
documents distributed to limited partners. We reserve the right to review the public tender offer documents prior
to their issuance to confirm that disclosures of facts from the current appraisals are accurate. No reference to our
name or our report, in whole or in part, in any other SEC filing or private placement memorandum you prepare
and/or distribute to third parties may be made without our prior written consent.

The Tender Offer Partnerships, as that term is defined in the Settlement Agreement, agree to indemnify and hold
us harmless against and from any and all losses, claims, actions, damages, expenses or liabilities, including
reasonable attorneys' fees, to which we may become subject in connection with this engagement except where
such losses, claims, actions, damages, expenses or liabilities, including reasonable attorney's fees, arise or result
from AAA's misconduct, bad faith or negligence. Co-Clients will not be liable for any of our acts or omissions.

AAA is an equal opportunity employer.
                    SILVERADO
               9300 VISCOUNT BLVD
                  EL PASO, TEXAS

                MARKET VALUE -
               FEE SIMPLE ESTATE

                AS OF MAY 11, 2003

                 PREPARED FOR:

APARTMENT INVESTMENT AND MANAGEMENT COMPANY
                   (AIMCO)

C/O LINER YANKELEVITZ SUNSHINE & REGENSTREIF LLP

                        &

      LIEFF CABRASER HEIMANN & BERNSTEIN
           ON BEHALF OF NUANES, ET. AL.

    [AMERICAN APPRAISAL ASSOCIATES(R) LOGO]
                           [AMERICAN APPRAISAL ASSOCIATES(R) LOGO]

                     [AMERICAN APPRAISAL ASSOCIATES(R) LETTERHEAD]

                                                  JULY 2, 2003

Apartment Investment and Management
Company ("AIMCO") c/o
Mr. Steven A. Velkei, Esq.
Liner Yankelevitz Sunshine & Regenstreif LLP 1100 Glendon Avenue, 14th Floor
Los Angeles, California 90024-3503

Nuanes, et al.( "Plaintiffs") c/o
Ms. Joy Kruse
Lieff Cabraser Heimann & Bernstein
Embarcadero Center West
275 Battery Street, 30th Floor
San Francisco, California 94111

RE: SILVERADO
9300 VISCOUNT BLVD
EL PASO, EL PASO COUNTY, TEXAS

In accordance with your authorization, we have completed the appraisal of the above-referenced property. This
complete appraisal is intended to report our analysis and conclusions in a summary format.

The subject property consists of an apartment project having 248 units with a total of 191,590 square feet of
rentable area. The improvements were built in 1973. The improvements are situated on 10 acres. Overall, the
improvements are in average condition. As of the date of this appraisal, the subject property is 92% occupied.

It is our understanding the appraisal will be used by the clients to assist the San Mateo Superior Court in the
settlement of litigation between the above mentioned clients. The appraisal is intended to conform to the Uniform
Standards of Professional Appraisal Practice ("USPAP") as promulgated by the Appraisal Standards Board of
the Appraisal Foundation and the Code of Professional Ethics and Standards of Professional Practice of the
Appraisal Institute. The appraisal is presented in a summary report, and the Departure Provision of USPAP has
not been invoked in this appraisal. It is entirely inappropriate to use this value conclusion or the report for any
purpose other than the one stated.
AMERICAN APPRAISAL ASSOCIATES, INC. LETTER OF TRANSMITTAL PAGE 2
SILVERADO, EL PASO, TEXAS

The opinions expressed in this appraisal cover letter can only be completely understood by reading the narrative
report, addenda, and other data, which is attached. The appraisal is subject to the attached general assumptions
and limiting conditions and general service conditions.

As a result of our investigation, it is our opinion that the fee simple market value of the subject, effective May 11,
2003 is:

                                                    ($5,600,000)

                                        Respectfully submitted,
                               AMERICAN APPRAISAL ASSOCIATES, INC.

                                              -s- Frank Fehribach
          July 2, 2003                        Frank Fehribach, MAI
          #053272                             Managing Principal, Real Estate Group
                                              Texas State Certified General Real Estate Appraiser
                                                #TX-1323954-G

          Report By:
          Daniel Salcedo




Texas State Certified General Real Estate Appraiser #TX-1331768-G
AMERICAN APPRAISAL ASSOCIATES, INC. TABLE OF CONTENTS PAGE 3
SILVERADO, EL PASO, TEXAS

                                        TABLE OF CONTENTS

Cover
Letter of Transmittal
Table of Contents

                                           APPRAISAL DATA

       Executive Summary...............................................................          4
       Introduction....................................................................          9
       Area Analysis...................................................................         11
       Market Analysis.................................................................         14
       Site Analysis...................................................................         16
       Improvement Analysis............................................................         16
       Highest and Best Use ...........................................................         17

                                              VALUATION

       Valuation Procedure.............................................................         18
       Sales Comparison Approach.......................................................         20
       Income Capitalization Approach .................................................         26
       Reconciliation and Conclusion...................................................         38




                                              ADDENDA

Exhibit A - Photographs of Subject Property Exhibit B - Summary of Rent Comparables and Photograph of
Comparables Exhibit C - Assumptions and Limiting Conditions Exhibit D - Certificate of Appraiser
Exhibit E - Qualifications
General Service Conditions
AMERICAN APPRAISAL ASSOCIATES, INC. EXECUTIVE SUMMARY PAGE 4
SILVERADO, EL PASO, TEXAS

                                  EXECUTIVE SUMMARY

                           PART ONE - PROPERTY DESCRIPTION

   PROPERTY NAME:                             Silverado
   LOCATION:                                  9300 Viscount Blvd
                                              El Paso, Texas

   INTENDED USE OF ASSIGNMENT:                Court Settlement
   PURPOSE OF APPRAISAL:                      "As Is" Market Value of the Fee Simple Estate
   INTEREST APPRAISED:                        Fee simple estate

   DATE OF VALUE:                             May 11, 2003
   DATE OF REPORT:                            July 2, 2003




PHYSICAL DESCRIPTION - SITE & IMPROVEMENTS:

  SITE:
    Size:                                    10 acres, or 435,600 square feet
    Assessor Parcel No.:                     F175-999-0010-4900
    Floodplain:                              Community Panel No. 4802140041B (October 15,
                                             1982)
                                             Flood Zone C, an area outside the floodplain.
    Zoning:                                  A-O (Medium to High Density Apartment District)

  BUILDING:
    No. of Units:                            248 Units
    Total NRA:                               191,590 Square Feet
    Average Unit Size:                       773 Square Feet
    Apartment Density:                       24.8 units per acre
    Year Built:                              1973




UNIT MIX AND MARKET RENT:

                           GROSS RENTAL INCOME PROJECTION

                                             Market Rent
                             Square      --------------------          Monthly         Annual
    Unit Type                 Feet       Per Unit      Per SF          Income          Income
 ---------------------------------------------------------------------------------------------
 1Br/1Ba - EA10                 494       $ 390        $ 0.79         $ 7,800       $   93,600
 1Br/1Ba -1A10                  525       $ 410        $ 0.78         $ 24,600      $ 295,200
 1Br/1Ba - 1A15                 754       $ 470        $ 0.62         $ 16,920      $ 203,040
 1 Br/1Ba-1B10                  684       $ 460        $ 0.67         $ 18,400      $ 220,800
 1 Br/1.5 Ba -1B15              878       $ 520        $ 0.59         $ 4,160       $   49,920
 2Br/1Ba-2A10                   979       $ 550        $ 0.56         $ 18,700      $ 224,400
 2 Br/1.5Ba -2A15             1,200       $ 640        $ 0.53         $ 7,680       $   92,160
 2 Ba/2 Ba- 2A20              1,028       $ 570        $ 0.55         $ 18,240      $ 218,880
 3Br/2Ba -3A20                1,350       $ 650        $ 0.48         $ 3,900       $   46,800
                                                       Total          $120,400      $1,444,800
      AMERICAN APPRAISAL ASSOCIATES, INC.                      EXECUTIVE SUMMARY PAGE 5
      SILVERADO, EL PASO, TEXAS

      OCCUPANCY:                                    92%
      ECONOMIC LIFE:                                45 Years
      EFFECTIVE AGE:                                25 Years
      REMAINING ECONOMIC LIFE:                      20 Years




SUBJECT PHOTOGRAPHS AND LOCATION MAP:

                                 SUBJECT PHOTOGRAPHS

                                 [PICTURE] [PICTURE]
                             UNIT TYPE FACADE UNIT TYPE

                                       AREA MAP

                                            [MAP]
AMERICAN APPRAISAL ASSOCIATES, INC. EXECUTIVE SUMMARY PAGE 6
SILVERADO, EL PASO, TEXAS

                             NEIGHBORHOOD MAP

                                    [MAP]

HIGHEST AND BEST USE:

        As Vacant:             Hold for future multi-family development
        As Improved:           Continuation as its current use

      METHOD OF VALUATION:     In this instance, the Sales Comparison and Income
                               Approaches to value were utilized.
AMERICAN APPRAISAL ASSOCIATES, INC. EXECUTIVE SUMMARY PAGE 7
SILVERADO, EL PASO, TEXAS

                                PART TWO - ECONOMIC INDICATORS

                                                              Amount                         $/Unit
                                                            ------------                  --------------
INCOME CAPITALIZATION APPROACH
DIRECT CAPITALIZATION
Potential Rental Income                                     $    1,444,800                $   5,826
Effective Gross Income                                      $    1,377,200                $   5,553
Operating Expenses                                          $      770,700                $   3,108                56.0% of
Net Operating Income:                                       $      544,500                $   2,196

Capitalization Rate                                                  10.00%
DIRECT CAPITALIZATION VALUE                                  $   5,400,000 *              $21,774 / UNIT

DISCOUNTED CASH FLOW ANALYSIS:
Holding Period                                                    10 years
2002 Economic Vacancy                                                    8%
Stabilized Vacancy & Collection Loss:                                   10%
Lease-up / Stabilization Period                                        N/A
Terminal Capitalization Rate                                         11.00%
Discount Rate                                                        12.50%
Selling Costs                                                         2.00%
Growth Rates:
  Income                                                              3.00%
  Expenses:                                                           3.00%
DISCOUNTED CASH FLOW VALUE                                   $   5,600,000 *              $22,581 / UNIT

RECONCILED INCOME CAPITALIZATION VALUE                       $   5,600,000                $22,581 / UNIT

SALES COMPARISON APPROACH

PRICE PER UNIT:
  Range of Sales $/Unit (Unadjusted)                        $    22,837 to $36,222
  Range of Sales $/Unit (Adjusted)                          $    20,553 to $25,736
VALUE INDICATION - PRICE PER UNIT                           $    5,700,000 *              $22,984 / UNIT

EGIM ANALYSIS
  Range of EGIMs from Improved Sales                         4.33 to 6.84
  Selected EGIM for Subject                                          4.00
  Subject's Projected EGI                                    $ 1,377,200
EGIM ANALYSIS CONCLUSION                                     $ 5,500,000 *                $22,177 / UNIT

NOI PER UNIT ANALYSIS CONCLUSION                             $   5,500,000 *              $22,177 / UNIT

RECONCILED SALES COMPARISON VALUE                            $   5,500,000                $22,177 / UNIT




* Value indications are after adjustments for concessions, deferred maintenance, excess land and lease-up costs,
if any.
AMERICAN APPRAISAL ASSOCIATES, INC. EXECUTIVE SUMMARY PAGE 8
SILVERADO, EL PASO, TEXAS

                  PART THREE - SUMMARY OF VALUE CONCLUSIONS

  SALES COMPARISON APPROACH:
       Price Per Unit                      $   5,700,000
       NOI Per Unit                        $   5,500,000
       EGIM Multiplier                     $   5,500,000
  INDICATED VALUE BY SALES COMPARISON      $   5,500,000      $22,177 / UNIT

  INCOME APPROACH:
       Direct Capitalization Method:       $   5,400,000
       Discounted Cash Flow Method:        $   5,600,000
  INDICATED VALUE BY THE INCOME APPROACH   $   5,600,000      $22,581 / UNIT

  RECONCILED OVERALL VALUE CONCLUSION:     $   5,600,000      $22,581 / UNIT
AMERICAN APPRAISAL ASSOCIATES, INC. INTRODUCTION PAGE 9
SILVERADO, EL PASO, TEXAS

                                                INTRODUCTION

IDENTIFICATION OF THE SUBJECT

The subject property is located at 9300 Viscount Blvd, El Paso, EL Paso County, Texas. El Paso identifies it as
F175-999-0010-4900.

SCOPE OF THE ASSIGNMENT

The property, neighborhood, and comparables were inspected by Daniel Salcedo on May 11, 2003. Frank
Fehribach, MAI has not made a personal inspection of the subject property. Daniel Salcedo performed the
research, valuation analysis and wrote the report. Frank Fehribach, MAI reviewed the report and concurs with
the value. Frank Fehribach, MAI and Daniel Salcedo have extensive experience in appraising similar properties
and meet the USPAP competency provision.

The scope of this investigation comprises the inspection of the property and the collection, verification, and
analysis of general and specific data pertinent to the subject property. We have researched current improved
sales and leases of similar properties, analyzing them as to their comparability, and adjusting them accordingly.
We completed the Sales Comparison and Income Capitalization Approaches to value. From these approaches to
value, a concluded overall value was made.

DATE OF VALUE AND REPORT

This appraisal was made to express the opinion of value as of May 11, 2003. The date of the report is July 2,
2003.

PURPOSE AND USE OF APPRAISAL

The purpose of the appraisal is to estimate the market value of the fee simple interest in the subject property. It is
understood that the appraisal is intended to assist the clients in litigation settlement proceedings. The appraisal
was not based on a requested minimum valuation, a specific valuation, or the approval of a loan.

PROPERTY RIGHTS APPRAISED

We have appraised the Fee Simple Estate in the subject property (as applied in the Sales & Income
Approaches), subject to the existing short-term leases. A Fee Simple Estate is
AMERICAN APPRAISAL ASSOCIATES, INC. INTRODUCTION PAGE 10
SILVERADO, EL PASO, TEXAS

defined in The Dictionary of Real Estate Appraisal, 3rd ed. (Chicago: Appraisal Institute, 1993), as:

"Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the
governmental powers of taxation, eminent domain, police power, and escheat."

MARKETING/EXPOSURE PERIOD
MARKETING PERIOD: 6 to 12 months
EXPOSURE PERIOD: 6 to 12 months

HISTORY OF THE PROPERTY

Ownership in the subject property is currently vested in CCEP. To the best of our knowledge, no transfers of
ownership or offers to purchase the subject are known to have occurred during the past three years.
AMERICAN APPRAISAL ASSOCIATES, INC. AREA ANALYSIS PAGE 11
SILVERADO, EL PASO, TEXAS

                                 AREA / NEIGHBORHOOD ANALYSIS

NEIGHBORHOOD ANALYSIS

A neighborhood is a group of complementary land uses. The function of the neighborhood analysis is to describe
the immediate surrounding environs. The subject is located in the city of El Paso, Texas. Overall, the
neighborhood is characterized as an urban setting with the predominant land use being residential. The subject's
neighborhood is generally defined by the following boundaries.

NEIGHBORHOOD BOUNDARIES

                                    East    -   Ranch 2316
                                    West    -   Hawkins Ave
                                    South   -   I-10
                                    North   -   Hawkins Ave/Cosmos Street




MAJOR EMPLOYERS

Major employers in the subject's area include Fort Hood Military Base. The overall economic outlook for the
area is considered favorable.

DEMOGRAPHICS

We have reviewed demographic data within the neighborhood. The following table summarizes the key data
points.
AMERICAN APPRAISAL ASSOCIATES, INC. AREA ANALYSIS PAGE 12
SILVERADO, EL PASO, TEXAS

                                   NEIGHBORHOOD DEMOGRAPHICS

                                                          AREA
                                       ------------------------------------------
     CATEGORY                          1-MI. RADIUS   3-MI. RADIUS   5-MI. RADIUS      MSA
     ---------------------------------------------------------------------------------------
     POPULATION TRENDS
     Current Population                    13,963       109,179        241,765       694,549
     5-Year Population                     13,959       105,374        244,263       734,415
     % Change CY-5Y                           0.0%         -3.5%           1.0%          5.7%
     Annual Change CY-5Y                      0.0%         -0.7%           0.2%          1.1%

     HOUSEHOLDS
     Current Households                             5,563           37,003            76,642          215,986
     5-Year Projected Households                    5,765           36,829            79,065          231,616
     % Change CY - 5Y                                 3.6%            -0.5%              3.2%             7.2%
     Annual Change CY-5Y                              0.7%            -0.1%              0.6%             1.4%

     INCOME TRENDS
     Median Household Income                     $ 32,761         $ 28,202          $ 29,872         $ 29,212
     Per Capita Income                           $ 19,361         $ 13,880          $ 13,491         $ 13,716
     Average Household Income                    $ 47,824         $ 40,820          $ 42,634         $ 44,105




Source: Demographics Now

The subject neighborhood's population is expected to show increases below that of the region. The immediate
market offers superior income levels as compared to the broader market.

The following table illustrates the housing statistics in the subject's immediate area, as well as the MSA region.

                                              HOUSING TRENDS

                                                           AREA
                                        ------------------------------------------
      CATEGORY                          1-MI. RADIUS   3-MI. RADIUS   5-MI. RADIUS      MSA
      ---------------------------------------------------------------------------------------
      HOUSING TRENDS
      % of Households Renting              50.17%          40.46%         35.83%       34.03%
      5-Year Projected % Renting           52.68%          40.54%         35.08%       32.34%

      % of Households Owning                       45.98%             55.17%            60.18%          61.63%
      5-Year Projected % Owning                    43.61%             55.05%            61.00%          63.53%




Source: Demographics Now
          AMERICAN APPRAISAL ASSOCIATES, INC.                                  AREA ANALYSIS PAGE 13
          SILVERADO, EL PASO, TEXAS

          SURROUNDING IMPROVEMENTS

          The following uses surround the subject property:

          North   -   Viscount Blvd/residential/multifamily uses
          South   -   Office business strip
          East    -   Viscount Blvd/residential/multifamily uses
          West    -   Vacant Land (El Paso Electric Power Station)




CONCLUSIONS

The subject is well located within the city of El Paso. The neighborhood is characterized as being mostly urban in
nature and is currently in the stable stage of development. The economic outlook for the neighborhood is judged
to be favorable with a good economic base.
AMERICAN APPRAISAL ASSOCIATES, INC. MARKET ANALYSIS PAGE 14
SILVERADO, EL PASO, TEXAS

                                             MARKET ANALYSIS

The subject property is located in the city of El Paso in EL Paso County. The overall pace of development in the
subject's market is more or less stable. Based on our site inspection of the market area, there was no evidence of
any new development for multifamily use. The following table illustrates historical vacancy rates for the subject's
market.

                                       HISTORICAL VACANCY RATE

                                Period                  Region           Submarket
                                ------                  ------           ---------
                                1Q-01                    8.0%               8.0%
                                2Q-01                    8.7%               8.7%
                                3Q-01                    9.0%               9.0%
                                4Q-01                    9.8%               9.8%
                                1Q-02                    7.8%               7.8%
                                2Q-02                    8.5%               8.5%
                                3Q-02                    6.8%               6.8%
                                4Q-02                    8.5%               8.5%
                                1Q-03                    8.0%               8.0%




Source: El Paso Apartment Association

Occupancy trends in the subject's market are a stable. Historically speaking, the subject's submarket has equated
the overall market. Occupancy in the subject's market area is expected to remain around 92.0% on average. Any
expected changes are caused by the short time fluctuations derived from military household demand. Overall,
occupancy in the market area is considered stable.

Market rents in the subject's market have been following a decreasing trend. The following table illustrates
historical rental rates for the subject's market.

                                       HISTORICAL AVERAGE RENT

                 Period             Region           % Change           Submarket        % Change
                 ------             ------           --------           ---------        --------
                 1Q-01               $497                 -                $497               -
                 2Q-01               $504               1.4%               $504             1.4%
                 3Q-01               $500              -0.8%               $500            -0.8%
                 4Q-01               $501               0.2%               $501             0.2%
                 1Q-02               $501               0.0%               $501             0.0%
                 2Q-02               $505               0.8%
                 3Q-02               $512               1.4%                  $505            -
                 4Q-02               $512               0.0%                  $512          1.4%
                 1Q-03               $506              -1.2%                  $506         -1.2%




Source: El Paso Apartment Association

The following table illustrates a summary of the subject's competitive set.
AMERICAN APPRAISAL ASSOCIATES, INC. MARKET ANALYSIS PAGE 15
SILVERADO, EL PASO, TEXAS

                                      COMPETITIVE PROPERTIES

  No.         Property Name            Units     Ocpy.      Year Built          Proximity to subject
  ---         -------------            -----     -----      ----------          --------------------
  R-1         La Plaza                  129       99%         1969         one mile southeast of the subject
  R-2         Shadow Ridge              352       92%         1985         less than 0.20 miles southeast of the su
  R-3         Spring Park               180       92%         1995         Approx. 0.50 miles southeast of the subj
  R-4         Citadel                   261       96%         1973         Approx. 0.40 miles southeast of the subj
  R-5         Celina                    289       94%         1974         Approx. 0.60 miles northwest of subject
Subject       Silverado                 248       92%         1973




Rental rates are expected to continue to slow their decline. They are expected to average around $500 per
month, since the market and its demand are stable.
AMERICAN APPRAISAL ASSOCIATES, INC. PROPERTY DESCRIPTION PAGE 16
SILVERADO, EL PASO, TEXAS

                                  PROPERTY DESCRIPTION

     SITE ANALYSIS
       Site Area                        10 acres, or 435,600 square feet
       Shape                            Irregular
       Topography                       Moderate slope
       Utilities                        All necessary utilities are available to the site.
       Soil Conditions                  Stable
       Easements Affecting Site         None other than typical utility easements
       Overall Site Appeal              Average
       Flood Zone:
         Community Panel                4802140041B, dated October 15, 1982
         Flood Zone                     Zone C
       Zoning                           A-O, the subject improvements represent a legal
                                        conforming use of the site.




REAL ESTATE TAXES

                                        ASSESSED VALUE - 2002
                             ------------------------------------     TAX RATE /   PROPERTY
      PARCEL NUMBER            LAND       BUILDING        TOTAL       MILL RATE      TAXES
    ---------------------------------------------------------------------------------------
    F175-999-0010-4900       $653,400    $4,156,600    $4,810,000      0.03005     $144,535



IMPROVEMENT ANALYSIS
  Year Built                       1973
  Number of Units                  248
  Net Rentable Area                191,590 Square Feet
  Construction:
    Foundation                     Reinforced concrete slab
    Frame                          Heavy or light wood
    Exterior Walls                 Brick or masonry
    Roof                           Composition shingle over a wood truss structure
  Project Amenities                Amenities at the subject include a swimming pool, gym
                                   room, barbeque equipment, meeting hall, laundry room,
                                   business office, and secured parking.
 Unit Amenities                    Individual unit amenities include a balcony, fireplace, cable
                                   TV connection, and washer dryer connection. Appliances
                                   available in each unit include a refrigerator, stove,
                                   microwave dishwasher, water heater, garbage disposal, and oven.
AMERICAN APPRAISAL ASSOCIATES, INC. PROPERTY DESCRIPTION PAGE 17
SILVERADO, EL PASO, TEXAS

Unit Mix:

                                                                                   Unit Area
                            Unit Type                   Number of Units            (Sq. Ft.)
                         -----------------              ---------------            ---------
                         1Br/1Ba - EA10                        20                      494
                         1Br/1Ba -1A10                         60                      525
                         1Br/1Ba - 1A15                        36                      754
                         1 Br/1Ba - 1B10                       40                      684
                         1 Br/1.5 Ba - 1B15                     8                      878
                         2Br/1Ba-2A10                          34                      979
                         2 Br/1.5Ba - 2A15                     12                    1,200
                         2 Ba/2 Ba - 2A20                      32                    1,028
                         3Br/2Ba - 3A20                         6                    1,350



                                     Overall Condition                  Average
                                     Effective Age                      25 years
                                     Economic Life                      45 years
                                     Remaining Economic Life            20 years
                                     Deferred Maintenance               None




                                    HIGHEST AND BEST USE ANALYSIS

In accordance with the definition of highest and best use, an analysis of the site relating to its legal uses, physical
possibilities, and financial feasibility is appropriate. The highest and best use as vacant is to hold for future multi-
family development. The subject improvements were constructed in 1973 and consist of a 248-unit multifamily
project. The highest and best use as improved is for a continued multifamily use. Overall, the highest and best use
of the subject property is the continued use of the existing apartment project.
AMERICAN APPRAISAL ASSOCIATES, INC. VALUATION PROCEDURE PAGE 18
SILVERADO, EL PASO, TEXAS

                                       THE VALUATION PROCEDURE

There are three traditional approaches, which can be employed in establishing the market value of the subject
property. These approaches and their applicability to the valuation of the subject are summarized as follows:

THE COST APPROACH

The application of the Cost Approach is based on the principle of substitution. This principle may be stated as
follows: no one is justified in paying more for a property than that amount by which he or she can obtain, by
purchase of a site and construction of a building, without undue delay, a property of equal desirability and utility.
In the case of a new building, no deficiencies in the building should exist.

In the case of income-producing real estate, the cost of construction plays a minor and relatively insignificant role
in determining market value. The Cost Approach is typically only a reliable indicator of value for: (a) new
properties; (b) special use properties; and (c) where the cost of reproducing the improvements is easily and
accurately quantified and there is no economic obsolescence. In all instances, the issue of an appropriate
entrepreneurial profit - the reward for undertaking the risk of construction, remains a highly subjective factor
especially in a market lacking significant speculative development.

THE SALES COMPARISON APPROACH

The Sales Comparison Approach is an estimate of value based upon a process of comparing recent sales of
similar properties in the surrounding or competing areas to the subject property. Inherent in this approach is the
principle of substitution.

The application of this approach consists of comparing the subject property with similar properties of the same
general type, which have been sold recently or currently are available for sale in competing areas. This
comparative process involves judgment as to the similarity of the subject property and the comparable sale with
respect to many value factors such as location, contract rent levels, quality of construction, reputation and
prestige, age and condition, among others. The estimated value through this approach represents the probable
price at which a willing seller would sell the subject property to a willing and knowledgeable buyer as of the date
of value.
AMERICAN APPRAISAL ASSOCIATES, INC. VALUATION PROCEDURE PAGE 19
SILVERADO, EL PASO, TEXAS

THE INCOME CAPITALIZATION APPROACH

The theory of the Income Capitalization Approach is based on the premise that present value is the value of the
cash flow and reversionary value the property will produce over a reasonable holding (ownership) period.

The Discounted Cash Flow Analysis will convert equity cash flows (including cash flows and equity reversion)
into a present value utilizing an internal rate of return (or discount rate). The Internal Rate of Return (IRR) will be
derived from a comparison of alternate investments, a comparative analysis of IRR's used by recent buyers of
similar properties, and a review of published industry surveys.

The Direct Capitalization Analysis converts one year of income into an overall value using overall capitalization
rates from similar sales. The overall rates take into consideration buyers assumptions of the market over the long-
term.

The results of the Income Capitalization Analysis are usually the primary value indicator for income producing
properties. Investors expect a reasonable rate of return on their equity investment based on the ownership risks
involved; this approach closely parallels the investment decision process.

RECONCILIATION

In this instance, we have completed the Sales Comparison and Income Capitalization Approaches to value. As
an income producing property, the income approach is a primary approach to value. The Sales Comparison
Approach is also considered reliable as investors are buying similar buildings in the market.

Our research indicates that market participants are generally not buying, selling, investing, or lending with reliance
placed on the methodology of the Cost Approach to establish the value. Therefore, we have decided that the
Cost Approach is not a reliable indicator of value for the subject, and this approach has not been utilized.
AMERICAN APPRAISAL ASSOCIATES, INC. SALES COMPARISON APPROACH PAGE 20
SILVERADO, EL PASO, TEXAS

                                      SALES COMPARISON APPROACH

Use of market or comparable sales requires the collection and analysis of comparable sales data. Similar
properties recently sold are compared to the subject and adjusted based on any perceived differences. This
method is based on the premise that the costs of acquiring a substitute property would tend to establish a value
for the subject property. The premise suggests that if a substitute is unavailable in the market, the reliability of the
approach may be subordinate to the other approaches.

The reliance on substitute properties produces shortcomings in the validity of this approach. Geographic and
demographic characteristics from each submarket restrict which sales may be selected. Recent sales with a
similar physical characteristics, income levels, and location are usually limited. The sales we have identified,
however, do establish general valuation parameters as well as provide support to our conclusion derived through
the income approach method.

The standard unit of comparison among similar properties is the sales price per unit and price per square foot of
net rentable area. To accurately adjust prices to satisfy the requirements of the sales comparison approach,
numerous calculations and highly subjective judgments would be required including consideration of numerous
income and expense details for which information may be unreliable or unknown. The sales price per unit and
square foot are considered relevant to the investment decision, but primarily as a parameter against which value
estimates derived through the income approach can be judged and compared.

In examining the comparable sales, we have applied a subjective adjustment analysis, which includes specific
adjustments derived from our experience and consulting with the market participants.

SALES COMPARISON ANALYSIS

Detailed on the following pages are sales transactions involving properties located in the subject's competitive
investment market.

Photographs of the sale transactions are located in the Addenda. Following the summary of sales is an adjustment
grid that is used to arrive at a value.
AMERICAN APPRAISAL ASSOCIATES, INC. SALES COMPARISON APPROACH PAGE 21
SILVERADO, EL PASO, TEXAS

SUMMARY OF COMPARABLE SALES -IMPROVED

                                                                                  COMPARABLE
             DESCRIPTION                          SUBJECT                           I - 1
---------------------------------------------------------------------------------------------------------
  Property Name                        Silverado                        La Plaza                      Sha

LOCATION:
  Address                              9300 Viscount Blvd               9578 Sims Drive                   937

  City, State                          El Paso, Texas                   El Paso,TX                        El
  County                               EL Paso                          El Paso                           El
PHYSICAL CHARACTERISTICS:
  Net Rentable Area (SF)               191,590                          128,669                           263
  Year Built                           1973                             1969                              198
  Number of Units                      248                              129                               352
  Unit Mix:                                 Type              Total      Type                    Total      T
                                       1Br/1Ba - EA10           20      1Br/1Ba                    29     1Br
                                       1Br/1Ba -1A10            60      2Br/1Ba                    50     2Br
                                       1Br/1Ba - 1A15           36      2Br/1.5Ba                  35     2Br
                                       1 Br/1Ba-1B10            40      2Br/2Ba                    15     2Br
                                       1 Br/1.5 Ba -1B15         8                                        3Br
                                       2Br/1Ba-2A10             34
                                       2 Br/1.5Ba -2A15         12
                                       2 Ba/2 Ba- 2A20          32
                                       3Br/2Ba -3A20             6

  Average Unit Size (SF)               773                              997                               748
  Land Area (Acre)                     10.0000                          8.7670                            7.9
  Density (Units/Acre)                 24.8                             14.7                              44.
  Parking Ratio (Spaces/Unit)          2.58                             2.00                              2.0
  Parking Type (Gr., Cov., etc.)       Open                             Open                              Ope
CONDITION:                             Good                             Average                           Goo
APPEAL:                                Average                          Fair                              Goo
AMENITIES:
  Pool/Spa                             Yes/No                           Yes/No                            Yes
  Gym Room                             Yes                              Yes                               Yes
  Laundry Room                         Yes                              Yes                               No
  Secured Parking                      Yes                              Yes                               Yes
  Sport Courts                         Yes                              Yes                               Yes
  Washer/Dryer Connection              Yes                              No                                Yes

OCCUPANCY:                             92%                              92%                               93%
TRANSACTION DATA:
  Sale Date                                                             July, 2000                        Nov
  Sale Price ($)                                                        $4,150,000                        $12
  Grantor                                                               Dain Texas Partners               N/A

  Grantee                                                               American Opportunity for          Cas
                                                                        Housing-La Palza, LLC
  Sale Documentation                                                    Deed- Vol 1402/Page 134           Dee
  Verification                                                          Confidential                      Con
  Telephone Number
ESTIMATED PRO-FORMA:                                                     Total $      $/Unit      $/SF      T
  Potential Gross Income                                                $869,225      $6,738      $6.76   $2,
  Vacancy/Credit Loss                                                   $ 69,538      $ 539       $0.54   $
  Effective Gross Income                                                $799,687      $6,199      $6.22   $1,
  Operating Expenses                                                    $339,867      $2,635      $2.64   $
  Net Operating Income                                                  $459,820      $3,564      $3.57   $1,
NOTES:                                                                  None                              Non

  PRICE PER UNIT                                                                     $32,171
  PRICE PER SQUARE FOOT                                                              $ 32.25
  EXPENSE RATIO                                                                         42.5%
  EGIM                                                                                  5.19
  OVERALL CAP RATE                                                                     11.08%
  Cap Rate based on Pro Forma or Actual Income?                                      PRO FORMA

                                               COMPARABLE                     COMPARABLE
             DESCRIPTION                         I - 3                           I - 4
---------------------------------------------------------------------------------------------------------
 Property Name                         Spring Park                   Sand Pebble                    Celin

LOCATION:
  Address                              9535 Acer Avenue                  11280 Pebble Hills Drive          8500

  City, State                          El Paso, TX                       El Paso, TX                       El Pa
  County                               El Paso                           El Paso                           El Pa
PHYSICAL CHARACTERISTICS:
  Net Rentable Area (SF)               139,224                           165,504                           248,0
  Year Built                           1995                              1983                              1974
  Number of Units                      180                               208                               289
  Unit Mix:                              Type                    Total    Type                     Total     Typ
                                       1Br/1Ba                     60    1Br/1Ba                    100    1Br/1
                                       2Br/1Ba                     80    2Br/1Ba                     88    2Br/1
                                       3Br/2Ba                     40    3Br/2Ba                     20    3Br/2

  Average Unit Size (SF)               773                               796                               858
  Land Area (Acre)                     9.8900                            9.0460                            11.60
  Density (Units/Acre)                 18.2                              23.0                              24.9
  Parking Ratio (Spaces/Unit)          2.20                              2.01                              2.09
  Parking Type (Gr., Cov., etc.)       Open                              Open                              Open
CONDITION:                             Good                              Average                           Avera
APPEAL:                                Good                              Fair                              Fair
AMENITIES:
  Pool/Spa                             Yes/Yes                           Yes/No                            Yes/N
  Gym Room                             Yes                               No                                Yes
  Laundry Room                         Yes                               Yes                               Yes
  Secured Parking                      Yes                               No                                No
  Sport Courts                         Yes                               No                                No
  Washer/Dryer Connection              Yes                               No                                Yes

OCCUPANCY:                             92%                               90%                               94%
TRANSACTION DATA:
  Sale Date                            March, 2002                       November, 2002                    Janua
  Sale Price ($)                       $6,450,000                        $4,750,000                        $9,15
  Grantor                              Property Trust of America         Southwest Partners                Weste

  Grantee                              Wolf CE & I                       AIMCO/Sand Pebble LP              Ameri

  Sale Documentation                   Deed- Vol 3140/Page 204           Deed-Vol. 3273/Page 1048          Deed-
  Verification                         Confidential                      Confidential                      Confi
  Telephone Number
ESTIMATED PRO-FORMA:                     Total $       $/Unit    $/SF      Total $      $/Unit     $/SF      Tot
  Potential Gross Income               $1,128,869      $6,271    $8.11   $1,217,949     $5,856     $7.36   $1,56
  Vacancy/Credit Loss                  $    90,310     $ 502     $0.65   $ 121,795      $ 586      $0.74   $    9
  Effective Gross Income               $1,038,559      $5,770    $7.46   $1,096,154     $5,270     $6.62   $1,47
  Operating Expenses                   $ 425,809       $2,366    $3.06   $ 526,154      $2,530     $3.18   $ 57
  Net Operating Income                 $ 612,750       $3,404    $4.40   $ 570,000      $2,740     $3.44   $ 89
NOTES:                                 None                              None                              None

  PRICE PER UNIT                                      $35,833                          $22,837
  PRICE PER SQUARE FOOT                               $ 46.33                          $ 28.70
  EXPENSE RATIO                                          41.0%                            48.0%
  EGIM                                                   6.21                             4.33
  OVERALL CAP RATE                                       9.50%                           12.00%
  Cap Rate based on Pro Forma or Actual Income?      PRO FORMA                         PRO FORMA
AMERICAN APPRAISAL ASSOCIATES, INC. SALES COMPARISON APPROACH PAGE 22
SILVERADO, EL PASO, TEXAS

                                        IMPROVED SALES MAP

                                                   [MAP]

IMPROVED SALES ANALYSIS

The improved sales indicate a sales price range from $22,837 to $36,222 per unit. Adjustments have been made
to the sales to reflect differences in location, age/condition and quality/appeal. Generally speaking, larger
properties typically have a lower price per unit when compared to smaller properties, all else being equal.
Similarly, those projects with a higher average unit size will generally have a higher price per unit. After
appropriate adjustments are made, the improved sales demonstrate an adjusted range for the subject from
$20,553 to $25,736 per unit with a mean or average adjusted price of $23,097 per unit. The median adjusted
price is $22,367 per unit. Based on the following analysis, we have concluded to a value of $23,000 per unit,
which results in an "as is" value of $5,700,000 (rounded after necessary adjustment, if any).
AMERICAN APPRAISAL ASSOCIATES, INC. SALES COMPARISON APPROACH PAGE 23
SILVERADO, EL PASO, TEXAS

SALES ADJUSTMENT GRID

                                                                                     COMPARABLE
            DESCRIPTION                                 SUBJECT                         I - 1
---------------------------------------------------------------------------------------------------------
  Property Name                               Silverado                   La Plaza

  Address                                     9300 Viscount Blvd           9578 Sims Drive

  City                                        El Paso, Texas               El Paso,TX
  Sale Date                                                                July, 2000
  Sale Price ($)                                                           $4,150,000
  Net Rentable Area (SF)                      191,590                      128,669
  Number of Units                             248                          129
  Price Per Unit                                                           $32,171
  Year Built                                  1973                         1969
  Land Area (Acre)                            10.0000                      8.7670
VALUE ADJUSTMENTS                                   DESCRIPTION                DESCRIPTION              ADJ.
  Property Rights Conveyed                    Fee Simple Estate            Fee Simple Estate              0%
  Financing                                                                Cash To Seller                 0%
  Conditions of Sale                                                       Arm's Length                   0%
  Date of Sale (Time)                                                      07-2000                        0%
VALUE AFTER TRANS. ADJUST. ($/UNIT)                                                      $32,171
  Location                                                                 Comparable                     0%
  Number of Units                             248                          129                            0%
  Quality / Appeal                            Good                         Superior                     -10%
  Age / Condition                             1973                         1969 / Average                 0%
  Occupancy at Sale                           92%                          92%                            0%
  Amenities                                   Good                         Comparable                     0%
  Average Unit Size (SF)                      773                          997                          -10%
PHYSICAL ADJUSTMENT                                                                                     -20%
FINAL ADJUSTED VALUE ($/UNIT)                                                           $25,736

                                                     COMPARABLE                      COMPARABLE
            DESCRIPTION                                 I - 3                           I - 4
---------------------------------------------------------------------------------------------------------
  Property Name                               Spring Park                   Sand Pebble

  Address                                     9535 Acer Avenue               11280 Pebble Hills Drive

  City                                        El Paso, TX                    El Paso, TX
  Sale Date                                   March, 2002                    November, 2002
  Sale Price ($)                              $6,450,000                     $4,750,000
  Net Rentable Area (SF)                      139,224                        165,504
  Number of Units                             180                            208
  Price Per Unit                              $35,833                        $22,837
  Year Built                                  1995                           1983
  Land Area (Acre)                            9.8900                         9.0460
VALUE ADJUSTMENTS                                 DESCRIPTION       ADJ.         DESCRIPTION        ADJ.
  Property Rights Conveyed                    Fee Simple Estate      0%      Fee Simple Estate       0%
  Financing                                   Cash To Seller         0%      Cash To Seller          0%
  Conditions of Sale                          Arm's Length           0%      Arm's Length            0%
  Date of Sale (Time)                         03-2002                0%      11-2002                 0%
VALUE AFTER TRANS. ADJUST. ($/UNIT)                      $35,833                        $22,837
  Location                                    Comparable             0%      Comparable              0%
  Number of Units                             180                    0%      208                     0%
  Quality / Appeal                            Superior             -15%      Inferior                5%
  Age / Condition                             1995 / Good          -30%      1983 / Average        -15%
  Occupancy at Sale                           92%                    0%      90%                     0%
  Amenities                                   Comparable             0%      Comparable              0%
  Average Unit Size (SF)                      773                    5%      796                     0%
PHYSICAL ADJUSTMENT                                                -40%                            -10%
FINAL ADJUSTED VALUE ($/UNIT)                           $21,500                        $20,553




SUMMARY

            VALUE RANGE (PER UNIT)                      $20,553       TO      $   25,736
            MEAN (PER UNIT)                             $23,097
            MEDIAN (PER UNIT)                           $22,367
            VALUE CONCLUSION (PER UNIT)                 $23,000
           VALUE INDICATED BY SALES COMPARISON APPROACH                                  $5,704,000
           ROUNDED                                                                       $5,700,000




NET OPERATING INCOME (NOI) ANALYSIS

We have also conducted a net operating income (NOI) comparison analysis. The NOI effectively takes into
account the various physical, location, and operating aspects of the sale. When the subject's NOI is compared to
the sale NOI, a percent adjustment can be arrived at. The following table illustrates this analysis.
AMERICAN APPRAISAL ASSOCIATES, INC. SALES COMPARISON APPROACH PAGE 24
SILVERADO, EL PASO, TEXAS

                                       NOI PER UNIT COMPARISON

COMPARABLE    NO. OF         SALE PRICE                             NOI/           SUBJECT NOI       ADJU
   NO.        UNITS          PRICE/UNIT          OAR              NOI/UNIT       SUBJ. NOI/UNIT        FA
---------------------------------------------------------------------------------------------------------
  I-1          129           $ 4,150,000        11.08%          $ 459,820           $544,500           0.
                             $    32,171                        $     3,564         $ 2,196
  I-2          352           $12,750,000         9.06%          $1,155,151          $544,500           0.
                             $    36,222                        $     3,282         $ 2,196
  I-3          180           $ 6,450,000         9.50%          $ 612,750           $544,500           0.
                             $    35,833                        $     3,404         $ 2,196
  I-4          208           $ 4,750,000        12.00%          $ 570,000           $544,500           0.
                             $    22,837                        $     2,740         $ 2,196
  I-5          289           $ 9,150,000         9.80%          $ 896,700           $544,500           0.
                             $    31,661                        $     3,103         $ 2,196




                                                  PRICE/UNIT

                             Low             High            Average            Median
                           $18,296         $24,234           $21,572            $22,404




                   VALUE ANALYSIS BASED ON COMPARABLES NOI PER UNIT

                        Estimated Price Per Unit                               $   22,000
                                                                               ----------
                        Number of Units                                               248

                                                                               ----------
                        Value Based on NOI Analysis                            $5,456,000
                                                                  Rounded      $5,500,000




The adjusted sales indicate a range of value between $18,296 and $24,234 per unit, with an average of $21,572
per unit. Based on the subject's competitive position within the improved sales, a value of $22,000 per unit is
estimated. This indicates an "as is" market value of $5,500,000 (rounded after necessary adjustment, if any) for
the NOI Per Unit Analysis.

EFFECTIVE GROSS INCOME MULTIPLIER (EGIM) ANALYSIS

The effective gross income multiplier (EGIM) is derived by dividing the sales price by the total effective gross
income. The following table illustrates the EGIMs for the comparable improved sales.
AMERICAN APPRAISAL ASSOCIATES, INC. SALES COMPARISON APPROACH PAGE 25
SILVERADO, EL PASO, TEXAS

                    EFFECTIVE GROSS INCOME MULTIPLIER COMPARISON

COMPARABLE      NO. OF     SALE PRICE         EFFECTIVE          OPERATING                         SUBJEC
   NO.          UNITS      PRICE/UNIT        GROSS INCOME         EXPENSE             OER       PROJECTED
---------------------------------------------------------------------------------------------------------
  I-1            129       $ 4,150,000        $ 799,687          $ 339,867           42.50%
                           $    32,171
  I-2            352       $12,750,000        $1,863,146         $ 707,995           38.00%
                           $    36,222
  I-3            180       $ 6,450,000        $1,038,559         $ 425,809           41.00%        55.96%
                           $    35,833
  I-4            208       $ 4,750,000        $1,096,154         $ 526,154           48.00%
                           $    22,837
  I-5            289       $ 9,150,000        $1,472,415         $ 575,715           39.10%
                           $    31,661




                                                    EGIM

                  Low                    High                Average                    Median
                  4.33                   6.84                5.76                       6.21




                VALUE ANALYSIS BASED ON EGIM'S OF COMPARABLE SALES

                         Estimate EGIM                                             4.00
                                                                             ----------
                         Subject EGI                                         $1,377,200

                                                                             ----------
                         Value Based on EGIM Analysis                        $5,508,800
                                                                 Rounded     $5,500,000

                                                Value Per Unit               $   22,177




There is an inverse relationship, which generally holds among EGIMs and operating expenses. Properties, which
have higher expense ratios, typically sell for relatively less and therefore produce a lower EGIM. As will be
illustrated in the Income Capitalization Approach of this report, the subject's operating expense ratio (OER) is
estimated at 55.96% before reserves. The comparable sales indicate a range of expense ratios from 38.00% to
48.00%, while their EGIMs range from 4.33 to 6.84. Overall, we conclude to an EGIM of 4.00, which results in
an "as is" value estimate in the EGIM Analysis of $5,500,000.

SALES COMPARISON CONCLUSION

The three valuation methods in the Sales Comparison Approach are shown below. The overall value via the Sales
Comparison Approach is estimated at $5,500,000.

                           Price Per Unit                                  $5,700,000
                           NOI Per Unit                                    $5,500,000
                           EGIM Analysis                                   $5,500,000

                           Sales Comparison Conclusion                     $5,500,000
AMERICAN APPRAISAL ASSOCIATES, INC. INCOME CAPITALIZATION APPROACH PAGE
26
SILVERADO, EL PASO, TEXAS

                                 INCOME CAPITALIZATION APPROACH

The income capitalization approach is based on the premise that value is created by the expectation of future
benefits. We estimated the present value of those benefits to derive an indication of the amount that a prudent,
informed purchaser-investor would pay for the right to receive them as of the date of value.

This approach requires an estimate of the NOI of a property. The estimated NOI is then converted to a value
indication by use of either the direct capitalization or the discounted cash flow analysis (yield capitalization).

Direct capitalization uses a single year's stabilized NOI as a basis for a value indication by dividing the income by
a capitalization rate. The rate chosen accounts for a recapture of the investment by the investor and should reflect
all factors that influence the value of the property, such as tenant quality, property condition, neighborhood
change, market trends, interest rates, and inflation. The rate may be extracted from local market transactions or,
when transaction evidence is lacking, obtained from trade sources.

A discounted cash flow analysis focuses on the operating cash flows expected from the property and the
proceeds of a hypothetical sale at the end of a holding period (the reversion). The cash flows and reversion are
discounted to their present values using a market-derived discount rate and are added together to obtain a value
indication. Because benefits to be received in the future are worth less than the same benefits received in the
present, this method weights income in the early years more heavily than the income and the sale proceeds to be
received later. The strength of the discounted cash flow method is its ability to recognize variations in projected
net income, such as those caused by inflation, stepped leases, neighborhood change, or tenant turnover. Its
weakness is that it requires many judgments regarding the actions of likely buyers and sellers of the property in
the future.

In some situations, both methods yield a similar result. The discounted cash flow method is typically more
appropriate for the analysis of investment properties with multiple or long-term leases, particularly leases with
cancellation clauses or renewal options. It is especially useful for multi-tenant properties in volatile markets. The
direct capitalization
AMERICAN APPRAISAL ASSOCIATES, INC. INCOME CAPITALIZATION APPROACH PAGE
27
SILVERADO, EL PASO, TEXAS

method is normally more appropriate for properties with relatively stable operating histories and expectations.

A pro forma analysis for the first year of the investment is made to estimate a reasonable potential net operating
income for the Subject Property. Such an analysis entails an estimate of the gross income the property should
command in the marketplace. From this total gross income must be deducted an allowance for vacancy/collection
loss and operating expenses as dictated by general market conditions and the overall character of the subject's
tenancy and leased income to arrive at a projected estimate of net operating income. Conversion of the net
operating income to an indication of value is accomplished by the process of capitalization, as derived primarily
from market data.

MARKET RENT ANALYSIS

In order to determine a market rental rate for the subject, a survey of competing apartment communities was
performed. This survey was displayed previously in the market analysis section of the report. Detailed information
pertaining to each of the comparable rental communities, along with photographs, is presented in the Addenda of
this report.

The following charts display the subject's current asking and actual rent rates as well as a comparison with the
previous referenced comparable rental properties.

                               SUMMARY OF ACTUAL AVERAGE RENTS

                                                          Average
                                      Unit Area     -------------------
                  Unit Type           (Sq. Ft.)     Per Unit     Per SF       %Occupied
               ------------------------------------------------------------------------
               1Br/1Ba - EA10             494        $389        $0.79          90.0%
               1Br/1Ba - 1A10             525        $409        $0.78          91.7%
               1Br/1Ba - 1A15             754        $469        $0.62          91.7%
               1 Br/1Ba- 1B10             684        $459        $0.67          97.5%
               1 Br/1.5 Ba - 1B15         878        $519        $0.59         100.0%
               2Br/1Ba - 2A10             979        $549        $0.56          85.3%
               2 Br/1.5Ba - 2A15         1200        $639        $0.53          75.0%
               2 Ba/2 Ba - 2A20          1028        $569        $0.55          93.8%
               3Br/2Ba - 3A20            1350        $649        $0.48         100.0%
AMERICAN APPRAISAL ASSOCIATES, INC. INCOME CAPITALIZATION APPROACH PAGE
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SILVERADO, EL PASO, TEXAS

                                       RENT ANALYSIS

                                                                                        COMPARABLE RENTS
                                                                     ------------------------------------
                                                                        R-1     R-2           R-3        R-
                                                                     ------------------------------------
                                                                               Shadow
                                                                     La Plaza   Ridge     Spring Park Cita
                                                                     ------------------------------------
                                                                                    COMPARISON TO SUBJECT
                                               SUBJECT   SUBJECT     ------------------------------------
                               SUBJECT UNIT      ACTUAL    ASKING    Slightly              Slightly
      DESCRIPTION                 TYPE           RENT       RENT     Superior Similar      Superior    Supe
---------------------------------------------------------------------------------------------------------
Monthly Rent                 1Br/1Ba - EA10    $    389  $    374    $    510 $     470    $    515    $
Unit Area (SF)                                      494       494         707       536         610
Monthly Rent Per Sq. Ft.                       $ 0.79    $ 0.76      $   0.72 $ 0.88       $   0.84    $

Monthly Rent                 1Br/1Ba -1A10     $    409   $    405
Unit Area (SF)                                      525        525
Monthly Rent Per Sq. Ft.                       $   0.78   $   0.77

Monthly Rent                 1Br/1Ba - 1A15    $    469   $    455
Unit Area (SF)                                      754        754
Monthly Rent Per Sq. Ft.                       $   0.62   $   0.60

Monthly Rent                 1 Br/1Ba-1B10     $    459   $    441
Unit Area (SF)                                      684        684
Monthly Rent Per Sq. Ft.                       $   0.67   $   0.64

Monthly Rent                 1 Br/1.5 Ba -     $    519   $    490
Unit Area (SF)               1B15                   878        878
Monthly Rent Per Sq. Ft.                       $   0.59   $   0.56

Monthly Rent                 2Br/1Ba-2A10      $    549   $    527    $     670   $    640               $
Unit Area (SF)                                      979        979        1,150        950                   1
Monthly Rent Per Sq. Ft.                       $   0.56   $   0.54    $    0.58   $   0.67               $

Monthly Rent                 2 Br/1.5Ba -      $   639    $   618     $     670   $    450   $     650   $
Unit Area (SF)               2A15                1,200      1,200           986        895         850       1
Monthly Rent Per Sq. Ft.                       $ 0.53     $ 0.52      $    0.68   $   0.50   $    0.76   $

Monthly Rent                 2 Ba/2 Ba- 2A20   $   569    $   543     $     620   $    640
Unit Area (SF)                                   1,028      1,028         1,375        958
Monthly Rent Per Sq. Ft.                       $ 0.55     $ 0.53      $    0.45   $   0.67

Monthly Rent                 3Br/2Ba -3A20     $   649    $   648                 $   790    $     775
Unit Area (SF)                                   1,350      1,350                   1,100        1,036
Monthly Rent Per Sq. Ft.                       $ 0.48     $ 0.48                  $ 0.72     $    0.75

      DESCRIPTION              MIN         MAX      MEDIAN     AVERAGE
----------------------------------------------------------------------
Monthly Rent                 $ 469      $   520     $ 510      $ 497
Unit Area (SF)                  536         707        644        633
Monthly Rent Per Sq. Ft.     $ 0.70     $ 0.88      $ 0.81     $ 0.79

Monthly Rent
Unit Area (SF)
Monthly Rent Per Sq. Ft.

Monthly Rent
Unit Area (SF)
Monthly Rent Per Sq. Ft.

Monthly Rent
Unit Area (SF)
Monthly Rent Per Sq. Ft.

Monthly Rent
Unit Area (SF)
Monthly Rent Per Sq. Ft.
Monthly Rent                      $  640       $   689       $  670       $  666
Unit Area (SF)                       950         1,173        1,150        1,091
Monthly Rent Per Sq. Ft.          $ 0.58       $ 0.67        $ 0.59       $ 0.61

Monthly Rent                      $  450       $   770       $  650       $  626
Unit Area (SF)                       850         1,140          986          986
Monthly Rent Per Sq. Ft.          $ 0.50       $ 0.76        $ 0.68       $ 0.64

Monthly Rent                      $  620       $   640       $  630       $  630
Unit Area (SF)                       958         1,375        1,167        1,167
Monthly Rent Per Sq. Ft.          $ 0.45       $ 0.67        $ 0.56       $ 0.56

Monthly Rent                      $  775       $   890       $  790       $  818
Unit Area (SF)                     1,036         1,190        1,100        1,109
Monthly Rent Per Sq. Ft.          $ 0.72       $ 0.75        $ 0.75       $ 0.74




CONCLUDED MARKET RENTAL RATES AND TERMS

Based on this analysis above, the subject's concluded market rental rates and gross rental income is calculated as
follows:
AMERICAN APPRAISAL ASSOCIATES, INC. INCOME CAPITALIZATION APPROACH PAGE
29
SILVERADO, EL PASO, TEXAS

                              GROSS RENTAL INCOME PROJECTION

                                                           Market Rent
                                        Unit Area   ------------------------      Monthly        Annual
  Unit Type          Number of Units    (Sq. Ft.)   Per Unit          Per SF       Income        Income
---------------------------------------------------------------------------------------------------------
1Br/1Ba - EA10            20               494        $390             $0.79      $ 7,800      $   93,600
1Br/1Ba -1A10             60               525        $410             $0.78      $ 24,600     $ 295,200
1Br/1Ba - 1A15            36               754        $470             $0.62      $ 16,920     $ 203,040
1 Br/1Ba-1B10             40               684        $460             $0.67      $ 18,400     $ 220,800
1 Br/1.5 Ba -1B15          8               878        $520             $0.59      $ 4,160      $   49,920
2Br/1Ba-2A10              34               979        $550             $0.56      $ 18,700     $ 224,400
2 Br/1.5Ba -2A15          12             1,200        $640             $0.53      $ 7,680      $   92,160
2 Ba/2 Ba- 2A20           32             1,028        $570             $0.55      $ 18,240     $ 218,880
3Br/2Ba -3A20              6             1,350        $650             $0.48      $ 3,900      $   46,800
                                                                       Total      $120,400     $1,444,800




PRO FORMA ANALYSIS

For purposes of this appraisal, we were provided with income and expense data for the subject property. A
summary of this data is presented on the following page.
AMERICAN APPRAISAL ASSOCIATES, INC. INCOME CAPITALIZATION APPROACH PAGE
30
SILVERADO, EL PASO, TEXAS

SUMMARY OF HISTORICAL INCOME & EXPENSES

                               FISCAL YEAR 2000         FISCAL YEAR 2001          FISCAL YEAR 2002
                           -----------------------   -----------------------   -----------------------
                                    ACTUAL                    ACTUAL                    ACTUAL
                           ---------------------------------------------------------------------------
     DESCRIPTION              TOTAL       PER UNIT      TOTAL        PER UNIT     TOTAL        PER UNIT
------------------------------------------------------------------------------------------------------
Revenues
  Rental Income            $1,491,269   $     6,013  $1,476,921    $     5,955 $ 852,917     $     3,439

  Vacancy                   $ 139,458    $      562   $   95,923   $      387   $   36,863   $      149
  Credit Loss/Concessions   $   84,244   $      340   $   84,395   $      340   $   28,085   $      113
                            ---------------------------------------------------------------------------
    Subtotal                $ 223,702    $      902   $ 180,318    $      727   $   64,948   $      262

  Laundry Income            $    1,193   $        5   $   15,182   $       61   $    8,919   $       36
  Garage Revenue            $        0   $        0   $        0   $        0   $        0   $        0
  Other Misc. Revenue       $   63,816   $      257   $   47,717   $      192   $   51,927   $      209
                            ---------------------------------------------------------------------------
    Subtotal Other Income   $   65,009   $      262   $   62,899   $      254   $   60,846   $      245
                            ---------------------------------------------------------------------------
Effective Gross Income      $1,332,576   $    5,373   $1,359,502   $    5,482   $ 848,815    $    3,423

Operating Expenses
  Taxes                     $   94,570   $      381   $ 183,619    $      740   $ 114,387    $      461
  Insurance                 $   20,671   $       83   $   32,165   $      130   $   26,338   $      106
  Utilities                 $ 120,016    $      484   $ 111,019    $      448   $   75,172   $      303
  Repair & Maintenance      $   88,317   $      356   $   77,068   $      311   $   58,713   $      237
  Cleaning                  $        0   $        0   $        0   $        0   $        0   $        0
  Landscaping               $   37,102   $      150   $   41,643   $      168   $   31,116   $      125
  Security                  $        0   $        0   $        0   $        0   $        0   $        0
  Marketing & Leasing       $   25,873   $      104   $   26,001   $      105   $   12,912   $       52
  General Administrative    $ 223,100    $      900   $ 225,792    $      910   $ 118,363    $      477
  Management                $   70,006   $      282   $   75,888   $      306   $   42,373   $      171
  Miscellaneous             $        0   $        0   $        0   $        0   $        0   $        0
                            ---------------------------------------------------------------------------
Total Operating Expenses    $ 679,655    $    2,741   $ 773,195    $    3,118   $ 479,374    $    1,933

  Reserves                  $        0   $        0   $        0   $        0   $        0   $        0
                            ---------------------------------------------------------------------------
Net Income                  $ 652,921    $    2,633   $ 586,307    $    2,364   $ 369,441    $    1,490

                               FISCAL YEAR 2003          ANNUALIZED 2003
                           -----------------------   -----------------------
                              MANAGEMENT BUDGET             PROJECTION                    AAA PROJECTION
                           ------------------------------------------------------------------------------
     DESCRIPTION             TOTAL        PER UNIT      TOTAL       PER UNIT      TOTAL        PER UNIT
---------------------------------------------------------------------------------------------------------
Revenues
  Rental Income            $1,431,500   $     5,772  $1,412,316   $     5,695  $1,444,800    $     5,826

  Vacancy                   $   54,000   $      218   $ 131,420    $      530   $ 115,584    $      466
  Credit Loss/Concessions   $   36,000   $      145   $    2,424   $       10   $   28,896   $      117
                            ------------------------------------------------------------------------------
    Subtotal                $   90,000   $      363   $ 133,844    $      540   $ 144,480    $      583

  Laundry Income            $   19,872   $       80   $   15,300   $       62   $   14,880   $       60
  Garage Revenue            $        0   $        0   $        0   $        0   $        0   $        0
  Other Misc. Revenue       $   80,400   $      324   $ 104,620    $      422   $   62,000   $      250
                            ------------------------------------------------------------------------------
    Subtotal Other Income   $ 100,272    $      404   $ 119,920    $      484   $   76,880   $      310
                            ------------------------------------------------------------------------------
Effective Gross Income      $1,441,772   $    5,814   $1,398,392   $    5,639   $1,377,200   $    5,553

Operating Expenses
  Taxes                     $   146,936   $     592   $   146,940   $     593   $   145,080   $     585
  Insurance                 $    46,017   $     186   $    47,960   $     193   $    29,760   $     120
  Utilities                 $   107,148   $     432   $   129,860   $     524   $   111,600   $     450
  Repair & Maintenance      $    98,160   $     396   $   102,868   $     415   $    99,200   $     400
  Cleaning                  $         0   $       0   $         0   $       0   $         0   $       0
  Landscaping               $    42,000   $     169   $    90,188   $     364   $    43,400   $     175
  Security                      $        0   $        0   $        0   $        0   $        0   $        0
  Marketing & Leasing           $   20,688   $       83   $   21,744   $       88   $   24,800   $      100
  General Administrative        $ 208,804    $      842   $ 242,196    $      977   $ 248,000    $    1,000
  Management                    $   67,200   $      271   $   85,528   $      345   $   68,860   $      278
  Miscellaneous                 $        0   $        0   $        0   $        0   $        0   $        0
                                ------------------------------------------------------------------------------
Total Operating Expenses        $ 736,953    $    2,972   $ 867,284    $    3,497   $ 770,700    $    3,108

  Reserves                      $        0   $        0   $        0   $        0   $   62,000   $      250
                                ------------------------------------------------------------------------------
Net Income                      $ 704,819    $    2,842   $ 531,108    $    2,142   $ 544,500    $    2,196




REVENUES AND EXPENSES

The subject's revenue and expense projections are displayed on the previous chart. Rental income is based on
the market analysis previously discussed. Other income consists of forfeited deposits, laundry income, late rent
payments, month to month fees, pet fees, vending machine revenue, etc.

We forecasted the property's annual operating expenses after reviewing its historical performance at the subject
property. We analyzed each item of expense and attempted to forecast amounts a typical informed investor
would consider reasonable.

VACANCY AND COLLECTION LOSS

An investor is primarily interested in the annual revenue an income property is likely to produce over a specified
period of time, rather than the income it could produce if it were always 100% occupied and all tenants were
paying their rent in full and on time. An investor normally expects some income loss as tenants vacate, fail to pay
rent, or pay their rent late.

We have projected a stabilized vacancy and collection loss rate of 10% based on the subject's historical
performance, as well as the anticipated future market conditions.
AMERICAN APPRAISAL ASSOCIATES, INC. INCOME CAPITALIZATION APPROACH PAGE
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SILVERADO, EL PASO, TEXAS

RESERVES FOR REPLACEMENT

"Reserves for replacements" is a contingency account allocated to the expenses of the property to provide for
replacement of short-lived items and for unforeseen necessary capital expenditures. We have utilized the Korpacz
Real Estate Investor Survey of the national apartment market, which reports a range of replacement reserves
between $150 and $400 per unit. For purposes of this analysis, we have included an allowance of $250 per unit
for reserves for replacement.

CAPITAL EXPENDITURES

Capital expenditures represent expenses for immediate repair or replacement of items that have average to long
lives. Based on our inspection of the property as well as discussions with property management personnel, there
are no major items remaining in need of repair or replacement that would require an expense beyond our reserves
for replacement. Therefore an allowance of $250 per unit should be satisfactory in our reserves for replacement
to cover future capital expenditures.

DISCOUNTED CASH FLOW ANALYSIS

As the subject is a multi-tenant income property, the Discounted Cash Flow Method is considered appropriate.
This method is especially meaningful in that it isolates the timing of the annual cash flows and discounts them,
along with the expected equity reversion, to a present value. The present value of the cash flow is added to the
present value of the reversion, resulting in a total property value.

INVESTMENT CRITERIA

Appropriate investment criteria will be derived for the subject based upon analysis of comparable sales and a
survey of real estate investors. The following table summarizes the findings of Korpacz National Investor Survey
for the most recent period.

                              KORPACZ NATIONAL INVESTOR SURVEY
                                      1ST QUARTER 2003
                                NATIONAL APARTMENT MARKET

                                               CAPITALIZATION RATES
                               ----------------------------------------------------------
                                       GOING-IN                          TERMINAL
                               ----------------------------------------------------------
                                LOW               HIGH            LOW              HIGH
                               ----------------------------------------------------------
              RANGE            6.00%             10.00%          7.00%            10.00%
              AVERAGE                   8.14%                              8.47%
AMERICAN APPRAISAL ASSOCIATES, INC. INCOME CAPITALIZATION APPROACH PAGE
32
SILVERADO, EL PASO, TEXAS

                                          SUMMARY OF OVERALL
                                          CAPITALIZATION RATES

                       COMP. NO.    SALE DATE     OCCUP.   PRICE/UNIT       OAR
                       ----------------------------------------------------------
                         I-1         Jul-00        92%      $32,171        11.08%
                         I-2         Nov-99        93%      $36,222         9.06%
                         I-3         Mar-02        92%      $35,833         9.50%
                         I-4         Nov-02        90%      $22,837        12.00%
                         I-5         Jan-01        94%      $31,661         9.80%
                                                                High       12.00%
                                                                 Low        9.06%
                                                             Average       10.29%




Based on this information, we have concluded the subject's overall capitalization rate should be 10.00%. The
terminal capitalization rate is applied to the net operating income estimated for the year following the end of the
holding period. Based on the concluded overall capitalization rate, the age of the property and the surveyed
information, we have concluded the subject's terminal capitalization rate to be 11.00%. Finally, the subject's
discount rate or yield rate is estimated based on the previous investor survey and an examination of returns
available on alternative investments in the market. Based on this analysis, the subject's discount rate is estimated
to be 12.50%.

HOLDING PERIOD

The survey of investors indicates that most investors are completing either 10-year cash flows or extending the
analysis to the end of the lease if it is more than 10-years. A 10-year period has been used in the analysis of the
subject with the eleventh year stabilized NOI used to determine the reversion.

SELLING COSTS

Sales of similar size properties are typically accomplished with the aid of a broker and will also incur legal and
other transaction related cost. Based on our survey of brokers and a review of institutional investor projections,
an allowance of 2.00% of the sale amount is applied.

DISCOUNTED CASH FLOW CONCLUSION

Discounting the annual cash flows and the equity reversion at the selected rate of 12.50% indicates a value of
$5,600,000. In this instance, the reversion figure contributes
AMERICAN APPRAISAL ASSOCIATES, INC. INCOME CAPITALIZATION APPROACH PAGE
33
SILVERADO, EL PASO, TEXAS

approximately 36% of the total value. Investors surveyed for this assignment indicated they would prefer to have
the cash flow contribute anywhere from 50% to 60%. Overall, the blend seems reasonable. The cash flow and
pricing matrix are located on the following pages.
        AMERICAN APPRAISAL ASSOCIATES, INC.           INCOME CAPITALIZATION APPROACH PAGE 34
        SILVERADO, EL PASO, TEXAS

        DISCOUNTED CASH FLOW ANALYSIS

                                              SILVERADO



                YEAR                     APR-2004      APR-2005      APR-2006      APR-2007      APR-2008
            FISCAL YEAR                      1             2             3             4             5
---------------------------------------------------------------------------------------------------------
REVENUE
  Base Rent                             $1,444,800    $1,488,144    $1,532,788    $1,578,772    $1,626,13

  Vacancy                               $ 115,584     $ 119,052     $ 122,623     $ 126,302     $ 130,09
  Credit Loss                           $   28,896    $   29,763    $   30,656    $   31,575    $   32,52
  Concessions                           $        0    $        0    $        0    $        0    $
                                        -----------------------------------------------------------------
    Subtotal                            $ 144,480     $ 148,814     $ 153,279     $ 157,877     $ 162,61

  Laundry Income                        $   14,880    $   15,326    $   15,786    $   16,260    $   16,74
  Garage Revenue                        $        0    $        0    $        0    $        0    $
  Other Misc. Revenue                   $   62,000    $   63,860    $   65,776    $   67,749    $   69,78
                                        -----------------------------------------------------------------
      Subtotal Other Income             $   76,880    $   79,186    $   81,562    $   84,009    $   86,52
                                        -----------------------------------------------------------------
EFFECTIVE GROSS INCOME                  $1,377,200    $1,418,516    $1,461,071    $1,504,904    $1,550,05

OPERATING EXPENSES:
  Taxes                                 $ 145,080     $ 149,432     $ 153,915     $ 158,533     $ 163,28
  Insurance                             $   29,760    $   30,653    $   31,572    $   32,520    $   33,49
  Utilities                             $ 111,600     $ 114,948     $ 118,396     $ 121,948     $ 125,60
  Repair & Maintenance                  $   99,200    $ 102,176     $ 105,241     $ 108,399     $ 111,65
  Cleaning                              $        0    $        0    $        0    $        0    $
  Landscaping                           $   43,400    $   44,702    $   46,043    $   47,424    $   48,84
  Security                              $        0    $        0    $        0    $        0    $
  Marketing & Leasing                   $   24,800    $   25,544    $   26,310    $   27,100    $   27,91
  General Administrative                $ 248,000     $ 255,440     $ 263,103     $ 270,996     $ 279,12
  Management                            $   68,860    $   70,926    $   73,054    $   75,245    $   77,50
  Miscellaneous                         $        0    $        0    $        0    $        0    $
                                        -----------------------------------------------------------------
TOTAL OPERATING EXPENSES                $ 770,700     $ 793,821     $ 817,636     $ 842,165     $ 867,43

  Reserves                              $   62,000    $   63,860    $   65,776    $   67,749    $   69,78
                                        -----------------------------------------------------------------
NET OPERATING INCOME                    $ 544,500     $ 560,835     $ 577,660     $ 594,990     $ 612,84

  Operating Expense Ratio (% of EGI)           56.0%             56.0%          56.0%          56.0%          56.
  Operating Expense Per Unit            $     3,108       $     3,201    $     3,297    $     3,396    $     3,49

                YEAR                     APR-2010      APR-2011      APR-2012      APR-2013      APR-2014
            FISCAL YEAR                      7             8             9             10            11
---------------------------------------------------------------------------------------------------------
REVENUE
  Base Rent                             $1,725,167    $1,776,922    $1,830,229    $1,885,136    $1,941,69

  Vacancy                               $ 138,013     $ 142,154     $ 146,418     $ 150,811     $ 155,33
  Credit Loss                           $   34,503    $   35,538    $   36,605    $   37,703    $   38,83
  Concessions                           $        0    $        0    $        0    $        0    $
                                        -----------------------------------------------------------------
    Subtotal                            $ 172,517     $ 177,692     $ 183,023     $ 188,514     $ 194,16

  Laundry Income                        $   17,767    $   18,301    $   18,850    $   19,415    $   19,99
  Garage Revenue                        $        0    $        0    $        0    $        0    $
  Other Misc. Revenue                   $   74,031    $   76,252    $   78,540    $   80,896    $   83,32
                                        -----------------------------------------------------------------
      Subtotal Other Income             $   91,799    $   94,553    $   97,389    $ 100,311     $ 103,32
                                        -----------------------------------------------------------------
EFFECTIVE GROSS INCOME                  $1,644,449    $1,693,782    $1,744,596    $1,796,934    $1,850,84

OPERATING EXPENSES:
  Taxes                                 $   173,233       $   178,430    $   183,783    $   189,296    $   194,97
  Insurance                             $    35,535       $    36,601    $    37,699    $    38,830    $    39,99
  Utilities                             $   133,256       $   137,254    $   141,372    $   145,613    $   149,98
  Repair & Maintenance                  $   118,450       $   122,003    $   125,664    $   129,433    $   133,31
  Cleaning                              $         0       $         0    $         0    $         0    $
  Landscaping                           $    51,822       $    53,377    $    54,978    $    56,627    $    58,32
  Security                              $         0       $         0    $         0    $         0    $
  Marketing & Leasing                    $   29,612    $   30,501    $   31,416    $   32,358    $   33,32
  General Administrative                 $ 296,125     $ 305,009     $ 314,159     $ 323,584     $ 333,29
  Management                             $   82,222    $   84,689    $   87,230    $   89,847    $   92,54
  Miscellaneous                          $        0    $        0    $        0    $        0    $
                                         -----------------------------------------------------------------
TOTAL OPERATING EXPENSES                 $ 920,256     $ 947,864     $ 976,300     $1,005,589    $1,035,75
  Reserves                               $   74,031    $   76,252    $   78,540    $   80,896    $   83,32
                                         -----------------------------------------------------------------
NET OPERATING INCOME                     $ 650,161     $ 669,666     $ 689,756     $ 710,449     $ 731,76

  Operating Expense Ratio (% of EGI)            56.0%             56.0%             56.0%          56.0%          56.
  Operating Expense Per Unit              $    3,711       $     3,822       $     3,937    $     4,055    $     4,17




                                                                          Gross Residual Sale                      De
                                                                            Price                   $6,652,386
Estimated Stabilized NOI   $544,500    Sales Expense Rate       2.00%       Less: Sales Expense     $ 133,048      Ad
                                                                                                    ----------
Months to Stabilized              1    Discount Rate           12.50%     Net Residual Sale Price   $6,519,338     Ot

Stabilized Occupancy           92.0%   Terminal Cap Rate       11.00%     PV of Reversion           $2,007,605     Va
                                                                          Add: NPV of NOI           $3,559,848
                                                                                                    ----------
                                                                                 PV Total           $5,567,453




                              "DCF" VALUE SENSITIVITY TABLE

                                                           DISCOUNT RATE
                               -----------------------------------------------------------------------
    TOTAL VALUE                  12.00%          12.25%         12.50%         12.75%         13.00%
------------------------------------------------------------------------------------------------------
                   10.50%      $5,841,506      $5,751,324     $5,663,053     $5,576,646     $5,492,056
                   10.75%      $5,790,366      $5,701,312     $5,614,142     $5,528,808     $5,445,266
TERMINAL CAP RATE 11.00%       $5,741,551      $5,653,573     $5,567,453     $5,483,145     $5,400,603
                   11.25%      $5,694,905      $5,607,956     $5,522,840     $5,439,510     $5,357,925
                   11.50%      $5,650,288      $5,564,323     $5,480,166     $5,397,774     $5,317,102
AMERICAN APPRAISAL ASSOCIATES, INC. INCOME CAPITALIZATION APPROACH PAGE
35
SILVERADO, EL PASO, TEXAS

INCOME LOSS DURING LEASE-UP

The subject is currently near or at a stabilized condition. Therefore, there is no income loss during lease-up at the
subject property.

CONCESSIONS

Concessions have historically not been utilized at the subject property or in the subject's market. Therefore, no
adjustment was included for concessions.

DIRECT CAPITALIZATION METHOD

After having projected the income and expenses for the property, the next step in the valuation process is to
capitalize the net income into an estimate of value. The selected overall capitalization rate ("OAR") covers both
return on and return of capital. It is the overall rate of return an investor expects.

After considering the market transactions and the investor surveys, we previously conclude that an overall rate of
10.00% percent is applicable to the subject. The results of our direct capitalization analysis are as follows:
AMERICAN APPRAISAL ASSOCIATES, INC. INCOME CAPITALIZATION APPROACH PAGE
36
SILVERADO, EL PASO, TEXAS

                                         SILVERADO

                                                            TOTAL      PER SQ. FT.     PER UNIT      %OF
---------------------------------------------------------------------------------------------------------
REVENUE
  Base Rent                                              $1,444,800    $     7.54    $     5,826

  Less: Vacancy & Collection Loss           10.00%       $   144,480    $    0.75    $      583

  Plus: Other Income
    Laundry Income                                       $   14,880    $     0.08    $       60         1
    Garage Revenue                                       $        0    $     0.00    $        0         0
    Other Misc. Revenue                                  $   62,000    $     0.32    $      250         4
                                                         ------------------------------------------------
         Subtotal Other Income                           $   76,880    $     0.40    $      310         5

EFFECTIVE GROSS INCOME                                   $1,377,200     $    7.19    $    5,553

OPERATING EXPENSES:
  Taxes                                                  $   145,080    $    0.76    $      585        10
  Insurance                                              $    29,760    $    0.16    $      120         2
  Utilities                                              $   111,600    $    0.58    $      450         8
  Repair & Maintenance                                   $    99,200    $    0.52    $      400         7
  Cleaning                                               $         0    $    0.00    $        0         0
  Landscaping                                            $    43,400    $    0.23    $      175         3
  Security                                               $         0    $    0.00    $        0         0
  Marketing & Leasing                                    $    24,800    $    0.13    $      100         1
  General Administrative                                 $   248,000    $    1.29    $    1,000        18
  Management                                 5.00%       $    68,860    $    0.36    $      278         5
  Miscellaneous                                          $         0    $    0.00    $        0         0

TOTAL OPERATING EXPENSES                                 $   770,700    $    4.02    $    3,108        55

  Reserves                                               $   62,000    $     0.32    $      250         4
                                                         ------------------------------------------------
NET OPERATING INCOME                                     $ 544,500     $     2.84    $    2,196        39

  "GOING IN" CAPITALIZATION RATE                               10.00%

  VALUE INDICATION                                       $5,445,000     $   28.42    $   21,956

  "AS IS" VALUE INDICATION
      (DIRECT CAPITALIZATION APPROACH)                   $5,445,000

                     ROUNDED                             $5,400,000     $   28.19    $   21,774
AMERICAN APPRAISAL ASSOCIATES, INC. INCOME CAPITALIZATION APPROACH PAGE
37
SILVERADO, EL PASO, TEXAS

                      DIRECT CAPITALIZATION VALUE SENSITIVITY TABLE

                         CAP RATE       VALUE       ROUNDED     $/UNIT   $/SF
                         -----------------------------------------------------
                           9.25%     $5,886,486   $5,900,000   $23,790 $30.79
                           9.50%     $5,731,579   $5,700,000   $22,984 $29.75
                           9.75%     $5,584,615   $5,600,000   $22,581 $29.23
                          10.00%     $5,445,000   $5,400,000   $21,774 $28.19
                          10.25%     $5,312,195   $5,300,000   $21,371 $27.66
                          10.50%     $5,185,714   $5,200,000   $20,968 $27.14
                          10.75%     $5,065,116   $5,100,000   $20,565 $26.62




CONCLUSION BY THE DIRECT CAPITALIZATION METHOD

Applying the capitalization rate to our estimated NOI results in an estimated value of $5,400,000.

CORRELATION AND CONCLUSION BY THE INCOME APPROACH

The two methods used to estimate the market value of the subject property by the income approach resulted in
the following indications of value:

                           Discounted Cash Flow Analysis                   $5,600,000
                           Direct Capitalization Method                    $5,400,000




Giving consideration to the indicated values provided by both techniques, we have concluded the estimated value
by the income capitalization approach to be $5,600,000.
AMERICAN APPRAISAL ASSOCIATES, INC. RECONCILIATION AND CONCLUSION PAGE
38
SILVERADO, EL PASO, TEXAS

                                 RECONCILIATION AND CONCLUSION

This appraisal was made to express an opinion as of the Market Value of the fee simple estate in the property.

AS IS MARKET VALUE OF THE FEE SIMPLE ESTATE

                             Cost Approach                             Not Utilized
                             Sales Comparison Approach                  $5,500,000
                             Income Approach                            $5,600,000
                             Reconciled Value                           $5,600,000




The Direct Capitalization Method is considered a reliable indicator of value. Income and expenses were
estimated and projected based on historical operating statements and market oriented expenses. This method is
primarily used by investors in their underwriting analysis. Furthermore, there was good support for an overall rate
in the Direct Capitalization Method.

The Sales Comparison Approach to value supported the value conclusion by the Income Approach and was
given secondary consideration. Investment-grade, income-producing properties such as the subject are not
typically traded based on cost. Therefore, the Cost Approach has not been considered in our valuation.

FINAL VALUE - FEE SIMPLE ESTATE

Based on the investigation and premise outlined, it is our opinion that as of May 11, 2003 the market value of the
fee simple estate in the property is:

$5,600,000
AMERICAN APPRAISAL ASSOCIATES, INC. ADDENDA
SILVERADO, EL PASO, TEXAS

                               ADDENDA
AMERICAN APPRAISAL ASSOCIATES, INC. EXHIBIT A
SILVERADO, EL PASO, TEXAS

                                EXHIBIT A
                          SUBJECT PHOTOGRAPHS
AMERICAN APPRAISAL ASSOCIATES, INC.                              EXHIBIT A
SILVERADO, EL PASO, TEXAS

                             SUBJECT PHOTOGRAPHS

    [PICTURE]                                      [PICTURE]

 UNIT TYPE FACADE                                  UNIT TYPE

    [PICTURE]                                      [PICTURE]

     BEDROOM                                       DINING AREA

    [PICTURE]                                      [PICTURE]




                    KITCHEN AREA LIVING ROOM AREA
AMERICAN APPRAISAL ASSOCIATES, INC.                               EXHIBIT A
SILVERADO, EL PASO, TEXAS

                             SUBJECT PHOTOGRAPHS

      [PICTURE]                                        [PICTURE]

        POOL                                         FITNESS CENTER

      [PICTURE]                                        [PICTURE]

     LAUNDRY ROOM                                       PARKING

      [PICTURE]                                        [PICTURE]

 VISCOUNT BLVD - NORTH                             VISCOUNT BLVD -SOUTH
AMERICAN APPRAISAL ASSOCIATES, INC. EXHIBIT B
SILVERADO, EL PASO, TEXAS

                              EXHIBIT B
                     SUMMARY OF RENT COMPARABLES
                    AND PHOTOGRAPH OF COMPARABLES
AMERICAN APPRAISAL ASSOCIATES, INC. EXHIBIT B
SILVERADO, EL PASO, TEXAS

                PHOTOGRAPHS OF COMPARABLE SALE PROPERTIES

         COMPARABLE I-1                COMPARABLE I-2             COMPARABLE I-3
            LA PLAZA                    SHADOW RIDGE               SPRING PARK
        9578 Sims Drive              9375 Viscount Blvd          9535 Acer Avenue
          El Paso,TX                     El Paso, TX               El Paso, TX

         [PICTURE]                       [PICTURE]                  [PICTURE]

                COMPARABLE I-4                              COMPARABLE I-5
                 SAND PEBBLE                                   CELINA
          11280 Pebble Hills Drive                        8500 Viscount Blvd
                 El Paso, TX                                 El Paso, TX

                  [PICTURE]                                  [PICTURE]
AMERICAN APPRAISAL ASSOCIATES, INC. EXHIBIT B
SILVERADO, EL PASO, TEXAS

SUMMARY OF COMPARABLE RENTAL PROPERTIES

                                                                                          COMPARABLE
    DESCRIPTION                                SUBJECT                                       R- 1
---------------------------------------------------------------------------------------------------------
  Property Name               Silverado                                  La Plaza
  Management Company          AIMCO                                      The Lynd Company
LOCATION:
  Address                     9300 Viscount Blvd                         9578 Sims Drive
  City, State                 El Paso, Texas                             El Paso, TX
  County                      EL Paso                                    El Paso
  Proximity to Subject                                                   one mile southeast of the subjec
PHYSICAL CHARACTERISTICS:
  Net Rentable Area (SF)      191,590                                    128,669
  Year Built                  1973                                       1969
  Effective Age               25                                         20
  Building Structure Type     Brick & wood siding walls; asphalt         Brick & wood siding walls; aspha
                              shingle roof                               shingle roof
  Parking Type
  (Gr., Cov., etc.)           Open                                       Open, Covered
  Number of Units             248                                        129
  Unit Mix:                           Type          Unit   Qty.    Mo.            Type               Unit

                              1 1 Br/1Ba-EA10                494   20     $389   1       1Br/1Ba                  707
                              2 1 Br/1Ba-1A10                525   60     $409   7       2Br/1Ba                  986
                              3 1 Br/1Ba-1A15                754   36     $469   6       2Br/1.5 Ba             1,150
                              4 1 Br/1Ba-1B10                684   40     $459   8       2Br/2Ba                1,375
                              5 1 Br/1.5 Ba-1B15             878    8     $519
                              6 2 Br/1Ba-2A10                979   34     $549
                              7 2 Br/1.5Ba-2A15            1,200   12     $639
                              8 2 Ba/2 Ba-2A20             1,028   32     $569
                              9 3 Br/2Ba-3A20              1,350    6     $649
  Average Unit Size (SF)      773                                                1,013
  Unit Breakdown:              Efficiency   0%         2-Bedroom    31%            Efficiency          0%       2-Bedroo
                               1-Bedroom   66%         3-Bedroom     3%            1-Bedroom          22%       3-Bedroo
CONDITION:                    Good                                               slightly
APPEAL:                       Average                                            Superior
AMENITIES:
  Unit Amenities                    Attach. Garage           Vaulted Ceiling             Attach. Garage           Vaulte
                               X    Balcony            X     W/D Connection              Balcony                  W/D Co
                               X    Fireplace                Other                   X   Fireplace                Other
                               X    Cable TV Ready                                   X   Cable TV Ready
  Project Amenities            X    Swimming Pool                                    X   Swimming Pool
                                    Spa/Jacuzzi              Car Wash                    Spa/Jacuzzi              Car Wa
                                    Basketball Court   X     BBQ Equipment               Basketball Court         BBQ Eq
                                    Volleyball Court         Theater Room                Volleyball Court         Theate
                                    Sand Volley Ball   X     Meeting Hall                Sand Volley Ball   X     Meetin
                                    Tennis Court       X     Secured Parking             Tennis Court             Secure
                                    Racquet Ball       X     Laundry Room                Racquet Ball       X     Laundr
                                    Jogging Track      X     Business Office             Jogging Track            Busine
                               X    Gym Room                                       X     Gym Room
OCCUPANCY:                    92%                                                99%
LEASING DATA:
  Available Leasing Terms     12 months                                          12 months
  Concessions                 1 month                                            1 month
  Pet Deposit                 $150                                               $150
  Utilities Paid by Tenant:    X Electric             Natural Gas                  X Electric              Natura
                                   Water              Trash                           Water                Trash
  Confirmation                Elda Caro/Property Manager                         Aeriel Romero/Assistant Manager
  Telephone Number            915.591.6626                                       915.598.5477
NOTES:                                                                           None
  COMPARISON TO SUBJECT:                                                         Slightly Superior

                                                 COMPARABLE                                   COMPARABLE
    DESCRIPTION                                     R - 2                                       R - 3
---------------------------------------------------------------------------------------------------------
  Property Name               Shadow Ridge                                   Spring Park
  Management Company          Case & Associates                              BH Management Services
LOCATION:
  Address                     9375 Viscount Blvd                             9535 Acer Avenue
  City, State                 El Paso, TX                                    El Paso, TX
  County                      El Paso                                        EL Paso
  Proximity to Subject        less than 0.20 miles southeast                 Approx. 0.50 miles southeast
                              of the subject
PHYSICAL CHARACTERISTICS:
  Net Rentable Area (SF)      263,296                                               139,224
  Year Built                  1985                                                  1995
  Effective Age               18                                                    8
  Building Structure Type     Brick & wood siding walls; asphalt                    Brick & wood siding walls; a
                              shingle roof                                          shingle roof
  Parking Type                Open                                                  Open
  (Gr., Cov., etc.)
  Number of Units             352                                                   180
  Unit Mix:                               Type           Unit      Qty   Mo                       Type            Unit
                              1    1  Br/1Ba             536        80   $470       1       1Br/1Ba               610
                              7    2  Br/1/Ba            895       100   $450       7       2Br/1Ba               850
                              6    2  Br/1.5Ba           950        60   $640       9       3Br/2Ba             1,036
                              8    2  Br/2Ba             958        60   $640
                              9    3  Br/2Ba           1,100        52   $790
  Average Unit Size (SF)      864                                                   811
  Unit Breakdown:               Efficiency        0%       2-Bedroom          63%      Efficiency         0%          2-B
                                1-Bedroom        23%       3-Bedroom          14%      1-Bedroom         33%          3-B
CONDITION:                    Good                                                  Good
APPEAL:                       Average                                               Good
AMENITIES:
  Unit Amenities                    Attach. Garage          Vaulted Ceiling                  Attach. Garage            Va
                                    Balcony            X    W/D Connect.                X    Balcony              X    W/
                                X   Fireplace               Other                       X    Fireplace                 Ot
                                X   Cable TV Ready                                      X    Cable TV Ready
   Project Amenities            X   Swimming Pool                                       X    Swimming Pool
                                    Spa/Jacuzzi             Car Wash                    X    Spa/Jacuzzi               Ca
                                    Basketball Court   X    BBQ Equipment                    Basketball Court     X    BB
                                    Volleyball Court        Theater Room                     Volleyball Court          Th
                                    Sand Volley Ball   X    Meeting Hall                X    Sand Volley Ball     X    Me
                                    Tennis Court            Secured Parking                  Tennis Court              Se
                                    Racquet Ball       X    Laundry Room                     Racquet Ball         X    La
                                    Jogging Track           Business Office                  Jogging Track        X    Bu
                                X   Gym Room                                          X      Gym Room
OCCUPANCY:                    92%                                                   92%
LEASING DATA:
  Available Leasing Terms     12 months                                             12 months
  Concessions                 1 month                                               1 month
  Pet Deposit                 $150                                                   $150
  Utilities Paid by Tenant:     X Electric              Natural Gas                   X Electric              Na
                                   Water                Trash                             Water               Tr
  Confirmation                Sergio Valdez/Assistant Manager                       Lilia Anaya/Property Manager
  Telephone Number            915.593.5250                                          915.594.7411
NOTES:                        None                                                  None
COMPARISON TO SUBJECT:        Similar                                               Slightly Superior

                                               COMPARABLE                                   COMPARABLE
    DESCRIPTION                                    R - 4                                       R - 5
---------------------------------------------------------------------------------------------------------
  Property Name               Citadel                                        Celina
  Management Company          AIMCO                                          The Lynd Company
LOCATION:
  Address                     9455 Viscount Blvd                             8500 Viscount Blvd
  City, State                 El Paso, TX                                    El Paso, TX
  County                      EL Paso                                        El Paso
  Proximity to Subject        Approx. 0.40 miles southeast of the subject    Approx. 0.60 miles northwest
PHYSICAL CHARACTERISTICS:
  Net Rentable Area (SF)      263,888                                        248,005
  Year Built                  1973                                           1974
  Effective Age               15                                             18
  Building Structure Type     Brick & wood siding walls; asphalt             Brick & wood siding walls; a
                              shingle roof                                   shingle roof
  Parking Type                Open/Covered                                   Open
  (Gr., Cov., etc.)
  Number of Units             261                                            289
  Unit Mix:                          Type            Unit     Qty      Mo            Type            Unit
                              1    1 Br/1Ba           667      94    $ 469   1     1 Br/1Ba           644
                              7    2 Br/2Ba         1,140      98    $ 589   7     2 Br/2Ba        1,058
                              6    2 Br/1.5Ba       1,173      59    $ 689   9     3 Br/2Ba        1,190
                                   3Ba/2.5Ba        1,640        8   $ 909
                                   4Br/2.5Ba        1,840        2   $1,090
  Average Unit Size (SF)      998                                            910
  Unit Breakdown:                Efficiency      0%       2-Bedroom     60%     Efficiency      0%      2-Be
                                 1-Bedroom      36%       3-Bedroom       4%    1-Bedroom      41%      3-Be
CONDITION:                    Good                                           Good
APPEAL:                       Average                                        Average
AMENITIES:
  Unit Amenities                    Attach. Garage         Vaulted Ceiling      X Attach. Garage          Va
                                 X Balcony                 W/D Connection       X Balcony              X W/
                                 X Fireplace               Other                X Fireplace               Ot
                                X   Cable TV Ready                             X   Cable TV Ready
   Project Amenities            X   Swimming Pool                              X   Swimming Pool
                                    Spa/Jacuzzi            Car Wash                Spa/Jacuzzi            Ca
                                    Basketball Court   X   BBQ Equipment           Basketball Court   X   BB
                                    Volleyball Court       Theater Room            Volleyball Court       Th
                                    Sand Volley Ball       Meeting Hall            Sand Volley Ball   X   Me
                                    Tennis Court           Secured Parking         Tennis Court           Se
                                    Racquet Ball       X   Laundry Room            Racquet Ball       X   La
                                    Jogging Track          Business Office         Jogging Track          Bu
                                X   Gym Room                                   X   Gym Room
OCCUPANCY:                    96%                                            94%
LEASING DATA:
  Available Leasing Terms     12 months                                      12 months
  Concessions                 1 month                                        1 month
  Pet Deposit                 $150                                           $150
  Utilities Paid by Tenant:     X Electric              Natural Gas            X Electric              Na
                                   Water                Trash                     Water                Tr
  Confirmation                Mary Myers/Property Manager                    Denisse Valdez/Assistant Man
  Telephone Number            915.591.3396                                   915.779.3741
NOTES:                        None                                           None
COMPARISON TO SUBJECT:        Superior                                       Similar
AMERICAN APPRAISAL ASSOCIATES, INC. EXHIBIT B
SILVERADO, EL PASO, TEXAS

              PHOTOGRAPHS OF COMPARABLE RENT PROPERTIES

            COMPARABLE R-1          COMPARABLE R-2           COMPARABLE R-3
               LA PLAZA              SHADOW RIDGE              SPRING PARK
           9578 Sims Drive        9375 Viscount Blvd        9535 Acer Avenue
             El Paso, TX             El Paso, TX               El Paso, TX

              [PICTURE]              [PICTURE]                  [PICTURE]

               COMPARABLE R-4                            COMPARABLE R-5
                 CITADEL                                    CELINA
             9455 Viscount Blvd                        8500 Viscount Blvd
                El Paso, TX                               El Paso, TX

                [PICTURE]                                  [PICTURE]
AMERICAN APPRAISAL ASSOCIATES, INC. EXHIBIT C
SILVERADO, EL PASO, TEXAS

                               EXHIBIT C
                  ASSUMPTIONS AND LIMITING CONDITIONS

                                 (3 PAGES)
AMERICAN APPRAISAL ASSOCIATES, INC. EXHIBIT C
SILVERADO, EL PASO, TEXAS

No responsibility is assumed for matters legal in nature. No investigation has been made of the title to or any
liabilities against the property appraised. In this appraisal, it is presumed that, unless otherwise noted, the owner's
claim is valid, the property rights are good and marketable, and there are no encumbrances which cannot be
cleared through normal processes.

To the best of our knowledge, all data set forth in this report are true and accurate. Although gathered from
reliable sources, no guarantee is made nor liability assumed for the accuracy of any data, opinions, or estimates
identified as being furnished by others which have been used in formulating this analysis.

Land areas and descriptions used in this appraisal were obtained from public records and have not been verified
by legal counsel or a licensed surveyor.

No soil analysis or geological studies were ordered or made in conjunction with this report, nor were any water,
oil, gas, or other subsurface mineral and use rights or conditions investigated.

Substances such as asbestos, urea-formaldehyde foam insulation, other chemicals, toxic wastes, or other
potentially hazardous materials could, if present, adversely affect the value of the property. Unless otherwise
stated in this report, the existence of hazardous substance, which may or may not be present on or in the
property, was not considered by the appraiser in the development of the conclusion of value. The stated value
estimate is predicated on the assumption that there is no material on or in the property that would cause such a
loss in value. No responsibility is assumed for any such conditions, and the client has been advised that the
appraiser is not qualified to detect such substances, quantify the impact on values, or develop the remedial cost.

No environmental impact study has been ordered or made. Full compliance with applicable federal, state, and
local environmental regulations and laws is assumed unless otherwise stated, defined, and considered in the
report. It is also assumed that all required licenses, consents, or other legislative or administrative authority from
any local, state, or national government or private entity organization either have been or can be obtained or
renewed for any use which the report covers.
AMERICAN APPRAISAL ASSOCIATES, INC. EXHIBIT C
SILVERADO, EL PASO, TEXAS

It is assumed that all applicable zoning and use regulations and restrictions have been complied with unless a
nonconformity has been stated, defined, and considered in the appraisal report. Further, it is assumed that the
utilization of the land and improvements is within the boundaries of the property described and that no
encroachment or trespass exists unless noted in the report.

The Americans with Disabilities Act ("ADA") became effective January 26, 1992. We have not made a specific
compliance survey and analysis of this property to determine whether or not it is in conformity with the various
detailed requirements of the ADA. It is possible that a compliance survey of the property together with a detailed
analysis of the requirements of the ADA could reveal that the property is not in compliance with one or more of
the requirements of the act. If so, this fact could have a negative effect on the value of the property. Since we
have no direct evidence relating to this issue, we did not consider the possible noncompliance with the
requirements of ADA in estimating the value of the property.

We have made a physical inspection of the property and noted visible physical defects, if any, in our report. This
inspection was made by individuals generally familiar with real estate and building construction. However, these
individuals are not architectural or structural engineers who would have detailed knowledge of building design and
structural integrity. Accordingly, we do not opine on, nor are we responsible for, the structural integrity of the
property including its conformity to specific governmental code requirements, such as fire, building and safety,
earthquake, and occupancy, or any physical defects which were not readily apparent to the appraiser during the
inspection.

The value or values presented in this report are based upon the premises outlined herein and are valid only for the
purpose or purposes stated.

The date of value to which the conclusions and opinions expressed apply is set forth in this report. The value
opinion herein rendered is based on the status of the national business economy and the purchasing power of the
U.S. dollar as of that date.

Testimony or attendance in court or at any other hearing is not required by reason of this appraisal unless
arrangements are previously made within a reasonable time in advance for
AMERICAN APPRAISAL ASSOCIATES, INC. EXHIBIT C
SILVERADO, EL PASO, TEXAS

such testimony, and then such testimony shall be at American Appraisal Associates, Inc.'s, prevailing per diem for
the individuals involved.

Possession of this report or any copy thereof does not carry with it the right of publication. No portion of this
report (especially any conclusion to use, the identity of the appraiser or the firm with which the appraiser is
connected, or any reference to the American Society of Appraisers or the designations awarded by this
organization) shall be disseminated to the public through prospectus, advertising, public relations, news, or any
other means of communication without the written consent and approval of American Appraisal Associates, Inc.
AMERICAN APPRAISAL ASSOCIATES, INC. EXHIBIT D
SILVERADO, EL PASO, TEXAS

                                 EXHIBIT D
                         CERTIFICATE OF APPRAISER

                                 (1 PAGE)
AMERICAN APPRAISAL ASSOCIATES, INC. EXHIBIT D

                                        CERTIFICATE OF APPRAISER

I certify that, to the best of my knowledge and belief:

The statements of fact contained in this report are true and correct.

The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting
conditions, and represent the unbiased professional analyses, opinions, and conclusions of American Appraisal
Associates, Inc.

American Appraisal Associates, Inc. and I personally, have no present or prospective interest in the property that
is the subject of this report and have no personal interest or bias with respect to the parties involved.

Compensation for American Appraisal Associates, Inc. is not contingent on an action or event resulting from the
analyses, opinions, or conclusions in, or the use of, this report.

The analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with
the requirements of the Uniform Standards of Professional Appraisal Practice and the Code of Professional
Ethics and the Standards of Professional Practice of the Appraisal Institute.

The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly
authorized representatives.

I personally did not inspect the subject property. Daniel Salcedo provided significant real property appraisal
assistance in the preparation of this report.

I am currently in compliance with the Appraisal Institute's continuing education requirements.

                                      /s/ Frank Fehribach
                                      ---------------------------
                                             Frank Fehribach, MAI
                                    Managing Principal, Real Estate Group
                                  Texas State Certified General Real Estate
                                            Appraiser #TX-1323954-G
AMERICAN APPRAISAL ASSOCIATES, INC. EXHIBIT E
SILVERADO, EL PASO, TEXAS

                                EXHIBIT E
                       QUALIFICATIONS OF APPRAISER

                                 (2 PAGES)
AMERICAN APPRAISAL ASSOCIATES, INC.                                   EXHIBIT E
SILVERADO, EL PASO, TEXAS

                            FRANK A. FEHRIBACH, MAI
                     MANAGING PRINCIPAL, REAL ESTATE GROUP

POSITION                  Frank A. Fehribach is a Managing Principal for the
                          Dallas Real Estate Group of American Appraisal
                          Associates, Inc. ("AAA").

EXPERIENCE

Valuation                 Mr. Fehribach has experience in valuations for resort
                          hotels; Class A office buildings; Class A multifamily
                          complexes; industrial buildings and distribution
                          warehousing; multitract mixed-use vacant land;
                          regional malls; residential subdivision development;
                          and special-purpose properties such as athletic
                          clubs, golf courses, manufacturing facilities,
                          nursing homes, and medical buildings. Consulting
                          assignments include development and feasibility
                          studies, economic model creation and maintenance, and
                          market studies.

                          Mr. Fehribach also has been involved in overseeing
                          appraisal and consulting assignments in Mexico and
                          South America.

Business                  Mr. Fehribach joined AAA as an engagement director in
                          1998. He was promoted to his current position in
                          1999. Prior to that, he was a manager at Arthur
                          Andersen LLP. Mr. Fehribach has been in the business
                          of real estate appraisal for over ten years.

EDUCATION                 University of Texas - Arlington
                            Master of Science - Real Estate
                          University of Dallas
                            Master of Business Administration   - Industrial
                          Management
                            Bachelor of Arts - Economics
         AMERICAN APPRAISAL ASSOCIATES, INC.                                        EXHIBIT E
         SILVERADO, EL PASO, TEXAS

         STATE CERTIFICATIONS           State of Arizona, Certified General Real Estate
                                        Appraiser,
                                        #30828




State of Arkansas, State Certified General Appraiser,
#CG1387N

                                State of Colorado, Certified General Appraiser,
                                                #CG40000445

                               State of Georgia, Certified General Real Property
                                                  Appraiser,
                                                   #218487

                                State of Michigan, Certified General Appraiser,
                                                #1201008081

                         State of Texas, Real Estate Salesman License, #407158
                                                (Inactive)

                              State of Texas, State Certified General Real Estate
                                                  Appraiser,
                                               #TX-1323954-G

          PROFESSIONAL                   Appraisal Institute, MAI Designated Member
          AFFILIATIONS                   Candidate Member of the CCIM Institute pursuing
                                         Certified Commercial Investment Member (CCIM)
                                         designation

          PUBLICATIONS                   "An Analysis of the Determinants of Industrial
                                         Property Valuation," Co-authored with Dr. Ronald C.
                                         Rutherford and Dr. Mark Eakin, The Journal of Real
                                         Estate Research, Vol. 8, No. 3, Summer 1993, p. 365.
AMERICAN APPRAISAL ASSOCIATES, INC.
SILVERADO, EL PASO, TEXAS

                      GENERAL SERVICE CONDITIONS
AMERICAN APPRAISAL ASSOCIATES, INC.
SILVERADO, EL PASO, TEXAS

                                    GENERAL SERVICE CONDITIONS

The services(s) provided by AAA will be performed in accordance with professional appraisal standards. Our
compensation is not contingent in any way upon our conclusions of value. We assume, without independent
verification, the accuracy of all data provided to us. We will act as an independent contractor and reserve the
right to use subcontractors. All files, workpapers or documents developed by us during the course of the
engagement will be our property. We will retain this data for at least five years.

Our report is to be used only for the specific purpose stated herein; and any other use is invalid. No reliance may
be made by any third party without our prior written consent. You may show our report in its entirety to those
third parties who need to review the information contained herein. No one should rely on our report as a
substitute for their own due diligence. We understand that our reports will be described in public tender offer
documents distributed to limited partners. We reserve the right to review the public tender offer documents prior
to their issuance to confirm that disclosures of facts from the current appraisals are accurate. No reference to our
name or our report, in whole or in part, in any other SEC filing or private placement memorandum you prepare
and/or distribute to third parties may be made without our prior written consent.

The Tender Offer Partnerships, as that term is defined in the Settlement Agreement, agree to indemnify and hold
us harmless against and from any and all losses, claims, actions, damages, expenses or liabilities, including
reasonable attorneys' fees, to which we may become subject in connection with this engagement except where
such losses, claims, actions, damages, expenses or liabilities, including reasonable attorney's fees, arise or result
from AAA's misconduct, bad faith or negligence. Co-Clients will not be liable for any of our acts or omissions.

AAA is an equal opportunity employer.
         STERLING APARTMENT HOMES &
          STERLING COMMERCE CENTER
        1815 JOHN F. KENNEDY BOULEVARD
           PHILADELPHIA, PENNSYLVANIA

                MARKET VALUE -
               FEE SIMPLE ESTATE

                AS OF MAY 13, 2003

                 PREPARED FOR:

APARTMENT INVESTMENT AND MANAGEMENT COMPANY
                   (AIMCO)

C/O LINER YANKELEVITZ SUNSHINE & REGENSTREIF LLP

                        &

      LIEFF CABRASER HEIMANN & BERNSTEIN
           ON BEHALF OF NUANES, ET. AL.

    [AMERICAN APPRAISAL ASSOCIATES(R) LOGO]
                          [AMERICAN APPRAISAL ASSOCIATES(R) LOGO]

                     [AMERICAN APPRAISAL ASSOCIATES(R) LETTERHEAD]

                                                 JULY 21, 2003

Apartment Investment and Management
Company ("AIMCO") c/o
Mr. Steven A. Velkei, Esq.
Liner Yankelevitz Sunshine & Regenstreif LLP 1100 Glendon Avenue, 14th Floor
Los Angeles, California 90024-3503

Nuanes, et al.( "Plaintiffs ") c/o
Ms. Joy Kruse
Lieff Cabraser Heimann & Bernstein
Embarcadero Center West
275 Battery Street, 30th Floor
San Francisco, California 94111

RE: STERLING APARTMENT HOMES & STERLING COMMERCE CENTER 1815 JOHN F.
KENNEDY BOULEVARD
PHILADELPHIA, PHILADELPHIA COUNTY, PENNSYLVANIA

In accordance with your authorization, we have completed the appraisal of the above-referenced property. This
complete appraisal is intended to report our analysis and conclusions in a summary format.

The subject property consists of an apartment project having 536 units with a total of 486,553 square feet of
rentable area. The attached commerce center contains 109,992 square feet of retail and office space. The
improvements were built in 1960. The improvements are situated on 0.89091 acres. Overall, the improvements
are in good condition. As of the date of this appraisal, the subject property is 91% occupied and the commerce
center is approximately 54% occupied.

It is our understanding the appraisal will be used by the clients to assist the San Mateo Superior Court in the
settlement of litigation between the above mentioned clients. The appraisal is intended to conform to the Uniform
Standards of Professional Appraisal Practice ("USPAP") as promulgated by the Appraisal Standards Board of
the Appraisal Foundation and the Code of Professional Ethics and Standards of Professional Practice of the
Appraisal Institute.
AMERICAN APPRAISAL ASSOCIATES, INC. LETTER OF TRANSMITTAL PAGE 2
STERLING APARTMENT HOMES, PHILADELPHIA, PENNSYLVANIA

The appraisal is presented in a summary report, and the Departure Provision of USPAP has not been invoked in
this appraisal. It is entirely inappropriate to use this value conclusion or the report for any purpose other than the
one stated.

The opinions expressed in this appraisal cover letter can only be completely understood by reading the narrative
report, addenda, and other data, which is attached. The appraisal is subject to the attached general assumptions
and limiting conditions and general service conditions.

As a result of our investigation, it is our opinion that the fee simple market value of the subject, effective May 13,
2003 is:

                                                   ($68,700,000)

This value is allocated between the two uses as follows:

Sterling Apartment Homes: $65,500,000 Sterling Commerce Center: $ 3,200,000

Respectfully submitted,
AMERICAN APPRAISAL ASSOCIATES, INC.

                                              -s- Frank Fehribach
                                              -------------------
            July 21, 2003                     Frank Fehribach, MAI
            #053272                           Managing Principal, Real Estate Group
                                              State of Pennsylvania Certified General Appraiser
                                               #GA003334

            Report By:
            Richard Mupo
AMERICAN APPRAISAL ASSOCIATES, INC. TABLE OF CONTENTS PAGE 3
STERLING APARTMENT HOMES, PHILADELPHIA, PENNSYLVANIA

                                        TABLE OF CONTENTS

Cover
Letter of Transmittal
Table of Contents

                                            APPRAISAL DATA

          Executive Summary .........................................................    4
          Introduction ..............................................................   11
          Area Analysis .............................................................   13
          Market Analysis ...........................................................   16
          Site Analysis .............................................................   18
          Improvement Analysis ......................................................   18
          Highest and Best Use ......................................................   19

                                               VALUATION

          Valuation Procedure .......................................................   20
          Sales Comparison Approach .................................................   22
          Income Capitalization Approach ............................................   28
          Reconciliation and Conclusion .............................................   48

                                                ADDENDA

          Exhibit   A - Photographs of Subject Property
          Exhibit   B - Summary of Rent Comparables and Photograph of Comparables
          Exhibit   C - Assumptions and Limiting Conditions
          Exhibit   D - Certificate of Appraiser
          Exhibit   E - Qualifications
          General   Service Conditions
AMERICAN APPRAISAL ASSOCIATES, INC. EXECUTIVE SUMMARY PAGE 4
STERLING APARTMENT HOMES, PHILADELPHIA, PENNSYLVANIA

                                 EXECUTIVE SUMMARY

                        PART ONE - PROPERTY DESCRIPTION

      PROPERTY NAME:                Sterling Apartment Homes&Sterling Commerce Center
      LOCATION:                     1815 John F. Kennedy Boulevard
                                    Philadelphia, Pennsylvania

      INTENDED USE OF ASSIGNMENT:   Court Settlement
      PURPOSE OF APPRAISAL:         "As Is" Market Value of the Fee Simple Estate
      INTEREST APPRAISED:           Fee simple estate

      DATE OF VALUE:                May 13, 2003
      DATE OF REPORT:               July 21, 2003




PHYSICAL DESCRIPTION - SITE & IMPROVEMENTS:
SITE:

         Size:                      0.89091 acres, or 38,808 square feet
         Assessor Parcel No.:       881035000
         Floodplain:                Community Panel No. #420757-183F (August 2, 1996)
                                    Flood Zone X, an area outside the floodplain.
         Zoning:                    C5 (Multi-Story Office District)

      BUILDING:
          Apartments:
            No. of Units:           536 Units
            Total NRA:              486,553 Square Feet
            Average Unit Size:      908 Square Feet
            Apartment Density:      601.6 units per acre
            Year Built:             1960
          Commerce Center:
            Office Area:            85,970 Square Feet
            Retail Area:            24,022 Square Feet
            Total Area:             109,992 Square Feet
AMERICAN APPRAISAL ASSOCIATES, INC. EXECUTIVE SUMMARY PAGE 5
STERLING APARTMENT HOMES, PHILADELPHIA, PENNSYLVANIA

UNIT MIX AND MARKET RENT:

                        GROSS RENTAL INCOME PROJECTION

                                         Market Rent
                             Square   ----------------   Monthly      Annual
                 Unit Type    Feet    Per Unit Per SF     Income      Income
                 ---------   ------   -------- ------    --------   ----------
                 EA10          412    $    899 $ 2.18    $ 28,768   $ 345,216
                 EB10          495    $    949 $ 1.92    $130,013   $1,560,156
                 1A10          550    $ 1,149 $ 2.09     $ 55,152   $ 661,824
                 1B10          803    $ 1,379 $ 1.72     $140,658   $1,687,896
                 1C10          920    $ 1,509 $ 1.64     $ 31,689   $ 380,268
                 2A20        1,315    $ 1,759 $ 1.34     $218,116   $2,617,392
                 2B20        1,425    $ 2,109 $ 1.48     $ 67,488   $ 809,856
                 2C20        1,794    $ 2,449 $ 1.37     $ 12,245   $ 146,940
                 3A20        1,631    $ 2,229 $ 1.37     $ 53,496   $ 641,952
                 3B20        1,778    $ 2,359 $ 1.33     $ 18,872   $ 226,464
                 3C20        2,215    $ 2,499 $ 1.13     $ 4,998    $   59,976
                 4A30        2,500    $ 2,459 $ 0.98     $ 2,459    $   29,508
                                                         --------   ----------
                                               Total     $763,954   $9,167,448



                OCCUPANCY:
                   APARTMENTS:              91%
                   COMMERCE CENTER:         69% (44.4% Office, 88.8% Retail)
                ECONOMIC LIFE:              45 Years
                EFFECTIVE AGE:              7 Years
                REMAINING ECONOMIC LIFE:    38 Years




SUBJECT PHOTOGRAPHS AND LOCATION MAP:

                                SUBJECT PHOTOGRAPHS

               [PICTURE]                                               [PICTURE]
      EXTERIOR - FRONT OF BUILDING                           EXTERIOR - REAR OF BUILDING
AMERICAN APPRAISAL ASSOCIATES, INC.                    EXECUTIVE SUMMARY PAGE 6
STERLING APARTMENT HOMES, PHILADELPHIA, PENNSYLVANIA




                                 AREA MAP

                                    [MAP]

                           NEIGHBORHOOD MAP

                                    [MAP]
AMERICAN APPRAISAL ASSOCIATES, INC. EXECUTIVE SUMMARY PAGE 7
STERLING APARTMENT HOMES, PHILADELPHIA, PENNSYLVANIA

HIGHEST AND BEST USE:

        As Vacant:           Hold for future multi-family development
        As Improved:         Continuation as its current use

      METHOD OF VALUATION:   In this instance, the Sales Comparison and Income
                             Approaches to value were utilized.
AMERICAN APPRAISAL ASSOCIATES, INC. EXECUTIVE SUMMARY PAGE 8
STERLING APARTMENT HOMES, PHILADELPHIA, PENNSYLVANIA

                              PART TWO - ECONOMIC INDICATORS

INCOME CAPITALIZATION APPROACH

                                                     Amount            $/Unit
                                                   ----------      ---------------
DIRECT CAPITALIZATION - APARTMENTS
Potential Rental Income                            $9,167,448      $ 17,103
Effective Gross Income                             $8,939,001      $ 16,677
Operating Expenses                                 $3,617,390      $ 6,749            40.5% of EGI
Net Operating Income:                              $5,214,411      $ 9,728

Capitalization Rate                                8.00%
DIRECT CAPITALIZATION VALUE                        $64,900,000 *   $121,082 / UNIT

DISCOUNTED CASH FLOW ANALYSIS - APARTMENTS:
Holding Period                                     10 years
2002 Economic Vacancy                              10%
Stabilized Vacancy & Collection Loss:              6%
Lease-up / Stabilization Period                    24 months
Terminal Capitalization Rate                       8.50%
Discount Rate                                      10.50%
Selling Costs                                      2.00%
Growth Rates:
   Income:                                         3.00%
   Expenses:                                       3.00%
DISCOUNTED CASH FLOW VALUE                         $63,900,000 *    $119,216 / UNIT

RECONCILED INCOME CAPITALIZATION VALUE             $64,500,000      $120,336 / UNIT

DISCOUNTED CASH FLOW ANALYSIS - COMMERCE CENTER:
Holding Period                                     10 years
2002 Economic Vacancy                              31%
Stabilized Vacancy & Collection Loss:              12%
Lease-up / Stabilization Period                    24 months
Terminal Capitalization Rate                       9.00%
Discount Rate                                      11.50%
Selling Costs                                      2.00%
Growth Rates:
   Income:                                         0% in Yr. 2, 3.00% thereafter
   Expenses:                                       3.00%
DISCOUNTED CASH FLOW VALUE                         $3,200,000 *     $29.09 / SF

RECONCILED INCOME APPROACH VALUE                   $3,200,000       $29.09 / SF
AMERICAN APPRAISAL ASSOCIATES, INC. EXECUTIVE SUMMARY PAGE 9
STERLING APARTMENT HOMES, PHILADELPHIA, PENNSYLVANIA

SALES COMPARISON APPROACH

     PRICE PER UNIT:
            Range of Sales $/Unit (Unadjusted)                $81,984 to $116,175
            Range of Sales $/Unit (Adjusted)                  $116,175 to $125,071

     VALUE INDICATION - PRICE PER UNIT                        $64,000,000    *            $119,403 / UNIT

     EGIM ANALYSIS
            Range of EGIMs from Improved Sales                5.65 to 9.27
            Selected EGIM for Subject                         7.50
            Subject's Projected EGI                           $8,939,001

     EGIM ANALYSIS CONCLUSION                                 $66,800,000 *               $124,627 / UNIT

     NOI PER UNIT ANALYSIS CONCLUSION                         $66,700,000 *               $124,440 / UNIT

     RECONCILED SALES COMPARISON VALUE                        $66,000,000                 $123,134 / UNIT




* Value indications are after adjustments for concessions, deferred maintenance, excess land and lease-up costs,
if any.
AMERICAN APPRAISAL ASSOCIATES, INC. EXECUTIVE SUMMARY PAGE 10
STERLING APARTMENT HOMES, PHILADELPHIA, PENNSYLVANIA

                PART THREE - SUMMARY OF VALUE CONCLUSIONS

         STERLING APARTMENT HOMES:
           SALES COMPARISON APPROACH:
              Price Per Unit                     $64,000,000
              NOI Per Unit                       $66,700,000
              EGIM Multiplier                    $66,800,000
           INDICATED VALUE BY SALES COMPARISON   $66,000,000   $123,134 / UNIT

          INCOME APPROACH:
             Direct Capitalization Method:       $64,900,000
             Discounted Cash Flow Method:        $63,900,000
          INDICATED VALUE BY INCOME APPROACH     $64,500,000   $120,336 / UNIT

          RECONCILED OVERALL VALUE CONCLUSION:   $65,500,000   $122,201 / UNIT

         STERLING COMMERCE CENTER:
           INCOME APPROACH:
              Discounted Cash Flow Method:       $ 3,200,000
           INDICATED VALUE BY INCOME APPROACH    $ 3,200,000   $   29.09 / SF

          RECONCILED OVERALL VALUE CONCLUSION:   $ 3,200,000   $   29.09 / SF

         COMBINED SUBJECT VALUE:                 $68,700,000
AMERICAN APPRAISAL ASSOCIATES, INC. INTRODUCTION PAGE 11
STERLING APARTMENT HOMES, PHILADELPHIA, PENNSYLVANIA

                                                INTRODUCTION

IDENTIFICATION OF THE SUBJECT

The subject property is located at 1815 John F. Kennedy Boulevard, Philadelphia, Philadelphia County,
Pennsylvania. Philadelphia identifies it as 881035000.

SCOPE OF THE ASSIGNMENT

The property, neighborhood, and comparables were inspected by Richard Mupo on May 13, 2003. Frank
Fehribach, MAI has not made a personal inspection of the subject property. Richard Mupo performed the
research, valuation analysis and wrote the report. Frank Fehribach, MAI reviewed the report and concurs with
the value. Frank Fehribach, MAI and Richard Mupo have extensive experience in appraising similar properties
and meet the USPAP competency provision.

The scope of this investigation comprises the inspection of the property and the collection, verification, and
analysis of general and specific data pertinent to the subject property. We have researched current improved
sales and leases of similar properties, analyzing them as to their comparability, and adjusting them accordingly.
We completed the Sales Comparison and Income Capitalization Approaches to value. From these approaches to
value, a concluded overall value was made.

DATE OF VALUE AND REPORT

This appraisal was made to express the opinion of value as of May 13, 2003. The date of the report is July 21,
2003.

PURPOSE AND USE OF APPRAISAL

The purpose of the appraisal is to estimate the market value of the fee simple interest in the subject property. It is
understood that the appraisal is intended to assist the clients in litigation settlement proceedings. The appraisal
was not based on a requested minimum valuation, a specific valuation, or the approval of a loan.

PROPERTY RIGHTS APPRAISED

We have appraised the Fee Simple Estate in the subject property (as applied in the Sales & Income
Approaches), subject to the existing short-term leases. A Fee Simple Estate is
AMERICAN APPRAISAL ASSOCIATES, INC. INTRODUCTION PAGE 12
STERLING APARTMENT HOMES, PHILADELPHIA, PENNSYLVANIA

defined in The Dictionary of Real Estate Appraisal, 3rd ed. (Chicago: Appraisal Institute, 1993), as:

"Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the
governmental powers of taxation, eminent domain, police power, and escheat."

MARKETING/EXPOSURE PERIOD

MARKETING PERIOD: 6 to 12 months

EXPOSURE PERIOD: 6 to 12 months

HISTORY OF THE PROPERTY

Ownership in the subject property is currently vested in CCIP. To the best of our knowledge, no transfers of
ownership or offers to purchase the subject are known to have occurred during the past three years.
AMERICAN APPRAISAL ASSOCIATES, INC. AREA ANALYSIS PAGE 13
STERLING APARTMENT HOMES, PHILADELPHIA, PENNSYLVANIA

                                  AREA / NEIGHBORHOOD ANALYSIS

NEIGHBORHOOD ANALYSIS

A neighborhood is a group of complementary land uses. The function of the neighborhood analysis is to describe
the immediate surrounding environs. The subject is located in the city of Philadelphia, Pennsylvania. Overall, the
neighborhood is characterized as an urban setting with the predominant land use being office. The subject's
neighborhood is generally defined by the following boundaries.

NEIGHBORHOOD BOUNDARIES

East - Juniper Street
West - Scuykill River
South - Walnut Street
North - I-676

MAJOR EMPLOYERS

Major employers in the subject's area include City of Philadelphia, University of Pennsylvania, Mellon Financial
to name a few. The overall economic outlook for the area is considered favorable.

DEMOGRAPHICS

We have reviewed demographic data within the neighborhood. The following table summarizes the key data
points.
AMERICAN APPRAISAL ASSOCIATES, INC. AREA ANALYSIS PAGE 14
STERLING APARTMENT HOMES, PHILADELPHIA, PENNSYLVANIA

                                   NEIGHBORHOOD DEMOGRAPHICS

                                                              AREA
                                            ----------------------------------------
                 CATEGORY                   1-MI. RADIUS 3-MI. RADIUS 5-MI. RADIUS                MSA
         ---------------------------        ------------ ------------ ------------             ----------
         POPULATION TRENDS
         Current Population                       62,254          443,430          902,902      5,117,235
         5-Year Population                        64,020          428,220          869,767      5,176,062
         % Change CY-5Y                              2.8%            -3.4%            -3.7%           1.1%
         Annual Change CY-5Y                         0.6%            -0.7%            -0.7%           0.2%

         HOUSEHOLDS
         Current Households                       36,383          183,977          349,056      1,932,596
         5-Year Projected Households              37,874          181,697          342,081      1,983,369
         % Change CY - 5Y                            4.1%            -1.2%            -2.0%           2.6%
         Annual Change CY-5Y                         0.8%            -0.2%            -0.4%           0.5%

         INCOME TRENDS
         Median Household Income             $    30,555      $    23,464      $    23,910     $    52,124
         Per Capita Income                   $    32,346      $    16,628      $    14,731     $    24,601
         Average Household Income            $    55,407      $    40,091      $    38,085     $    65,140




Source: Demographics Now

The subject neighborhood's population is expected to show increases above that of the region. The immediate
market offers inferior income levels as compared to the broader market.

The following table illustrates the housing statistics in the subject's immediate area, as well as the MSA region.

                                              HOUSING TRENDS

                                                               AREA
                                             ----------------------------------------
                  CATEGORY                   1-MI. RADIUS 3-MI. RADIUS 5-MI. RADIUS                 MSA
         ---------------------------         ------------ ------------ ------------             ----------
         HOUSING TRENDS
         % of Households Renting                 60.85%           44.10%           40.08%          27.89%
         5-Year Projected % Renting              59.92%           44.74%           41.19%          27.84%

         % of Households Owning                  23.06%           37.82%           44.08%          64.86%
         5-Year Projected % Owning               24.76%           37.31%           43.04%          65.19%




Source: Demographics Now
AMERICAN APPRAISAL ASSOCIATES, INC. AREA ANALYSIS PAGE 15
STERLING APARTMENT HOMES, PHILADELPHIA, PENNSYLVANIA

SURROUNDING IMPROVEMENTS

The following uses surround the subject property:

North - Municipal Parking Lot
South - Office Building
East - Municipal Parking Lot
West - Residential Apartment Building

CONCLUSIONS

The subject is well located within the city of Philadelphia. The neighborhood is characterized as being mostly
urban in nature and is currently in the stable stage of development. The economic outlook for the neighborhood is
judged to be favorable with a good economic base.
AMERICAN APPRAISAL ASSOCIATES, INC. MARKET ANALYSIS PAGE 16
STERLING APARTMENT HOMES, PHILADELPHIA, PENNSYLVANIA

                                             MARKET ANALYSIS

The subject property is located in the city of Philadelphia in Philadelphia County. The overall pace of
development in the subject's market is more or less decreasing. There are no new significant projects recently
completed within Center City. Over 790 units were delivered to the market in 2002. The greater Philadelphia
area delivered 280 units during the first quarter of 2003. This figure is down significantly from the prior year.
Overall, delivery of new units has slowed over the past year. The following table illustrates historical vacancy
rates for the subject's apartment market.

                                       HISTORICAL VACANCY RATE

                                         Period         Region   Submarket
                                  ----------------------------------------
                                            1Q03         3.8%       5.6%
                                            4Q02         3.3%       5.8%
                                     1-Year Annualized   2.9%       4.4%
                                     3-Year annualized   2.5%       2.9%




Source: REIS

Occupancy trends in the subject's market are stable. Historically speaking, the subject's submarket has
underperformed the overall market. Occupancy has been on a general decline since 2000 due to weakening
economic conditions. As Downtown Philadelphia's office market and economy improves, demand for local
residential units will likely increase. As noted above, Center City's occupancy rate slightly underperforms as
compared to the Greater Philadelphia market.

Market rents in the subject's market have been following a stable trend. The following table illustrates historical
rental rates for the subject's market.

                                       HISTORICAL AVERAGE RENT

                        Period             Region % Change Submarket % Change
                        --------------------------------------------------------
                         3Q02                N/A       -      $1,308        -
                         4Q02                N/A      N/A     $1,317       0.7%
                         1Q03                N/A      N/A     $1,325       0.6%




Source: Reis

The following table illustrates a summary of the subject's competitive set.
AMERICAN APPRAISAL ASSOCIATES, INC. MARKET ANALYSIS PAGE 17
STERLING APARTMENT HOMES, PHILADELPHIA, PENNSYLVANIA

                                       COMPETITIVE PROPERTIES

         No.          Property Name         Units   Ocpy. Year Built Proximity to subject
       ------------------------------------------------------------------------------------
         R-1    The Lofts at 1835 Arch       192     98%      2001     1 Block to the North
         R-2    Park Towne Place             980     95%      1959     3/4 Mile to the NE
         R-3    1500 Locust                  610     92%   Appr. 1990 1/4 Mile to the SE
         R-4    Locust on The Park           152     95%   Appr. 1990 1/2 Mile to the SW
       Subject Sterling Apartment Homes      536     91%      1960




Effective rents have remained relatively stable since mid-2002 and are projected to remain stagnant for the
foreseeable future. According to Reis, rent growth over the next five years will be light, estimated at roughly 2.8%
growth per annum.

Concerning the downtown office and retail market, NAI Geis Realty Group, Inc. reports that the Class A
occupancy rate within the Philadelphia central business district is 87%, while the occupancy rate for Class B
space is 85%. The average Class A rental rate is $27.00 per square foot and the average Class B rental rate is
$19.00 per square foot. The downtown retail market reports an occupancy rate of 93% with an average rental
rate of $25.00 per square foot. Growth rates over the next five years should be similar to those of the apartment
market, or generally in the 2.0% to 4.0% range.
      AMERICAN APPRAISAL ASSOCIATES, INC.                 PROPERTY DESCRIPTION PAGE 18
      STERLING APARTMENT HOMES, PHILADELPHIA, PENNSYLVANIA

                                   PROPERTY DESCRIPTION




SITE ANALYSIS

       Site Area                  0.89091 acres, or 38,808 square feet
       Shape                      Rectangular
       Topography                 Level
       Utilities                  All necessary utilities are available to the site.
       Soil Conditions            Stable
       Easements Affecting Site   None other than typical utility easements
       Overall Site Appeal        Good
       Flood Zone:
          Community Panel         #420757-183F, dated August 2, 1996
          Flood Zone              Zone X
       Zoning                     C5, the subject improvements represent a legal
                                  conforming use of the site.




REAL ESTATE TAXES

                                ASSESSED VALUE - 2002
                         ---------------------------------- TAX RATE/ PROPERTY
          PARCEL NUMBER     LAND      BUILDING     TOTAL     MILL RATE   TAXES
          ----------------------------------------------------------------------
            881035000    $2,500,000 $5,894,304 $8,394,304     0.08264   $693,705




IMPROVEMENT ANALYSIS

       Year Built          1960
       Number of Units     536
       Net Rentable Area   486,553 Square Feet - Apartment Space
                           109,992 Square Feet - Office & Retail Space
                           596,545 Square feet - Total

       Construction:
         Foundation        Steel or concrete piles
         Frame             Composite concrete or brick and steel
         Exterior Walls    Brick or masonry
         Roof              Built-up asphalt with or without gravel over a steel
                           beams structure
       Project Amenities   Amenities at the subject include a swimming pool, gym
                           room, business office, security, and parking area.
       Unit Amenities      Individual unit amenities include a cable TV connection,
                           and washer dryer connection. Appliances available in each
AMERICAN APPRAISAL ASSOCIATES, INC. PROPERTY DESCRIPTION PAGE 19
STERLING APARTMENT HOMES, PHILADELPHIA, PENNSYLVANIA

                              unit include a refrigerator, stove, microwave dishwasher,
                                      garbage disposal, washer/dryer, and oven.

Unit Mix:

                                                                 Unit Area
                                     Unit Type Number of Units (Sq. Ft.)
                                     -------------------------------------
                                     EA10             32            412
                                     EB10            137            495
                                     1A10             48            550
                                     1B10            102            803
                                     1C10             21            920
                                     2A20            124          1,315
                                     2B20             32          1,425
                                     2C20              5          1,794
                                     3A20             24          1,631
                                     3B20              8          1,778
                                     3C20              2          2,215
                                     4A30              1          2,500



                                      Overall Condition                  Good
                                      Effective Age                      7 years
                                      Economic Life                      45 years
                                      Remaining Economic Life            38 years
                                      Deferred Maintenance               None




HIGHEST AND BEST USE ANALYSIS

In accordance with the definition of highest and best use, an analysis of the site relating to its legal uses, physical
possibilities, and financial feasibility is appropriate. The highest and best use as vacant is to hold for future multi-
family development. The subject improvements were constructed in 1960 and consist of a 536-unit multifamily
with office and retail project. The highest and best use as improved is for a continued multifamily with office and
retail use. Overall, the highest and best use of the subject property is the continued use of the existing apartment
project.
AMERICAN APPRAISAL ASSOCIATES, INC. VALUATION PROCEDURE PAGE 20
STERLING APARTMENT HOMES, PHILADELPHIA, PENNSYLVANIA

                                       THE VALUATION PROCEDURE

There are three traditional approaches, which can be employed in establishing the market value of the subject
property. These approaches and their applicability to the valuation of the subject are summarized as follows:

THE COST APPROACH

The application of the Cost Approach is based on the principle of substitution. This principle may be stated as
follows: no one is justified in paying more for a property than that amount by which he or she can obtain, by
purchase of a site and construction of a building, without undue delay, a property of equal desirability and utility.
In the case of a new building, no deficiencies in the building should exist.

In the case of income-producing real estate, the cost of construction plays a minor and relatively insignificant role
in determining market value. The Cost Approach is typically only a reliable indicator of value for: (a) new
properties; (b) special use properties; and (c) where the cost of reproducing the improvements is easily and
accurately quantified and there is no economic obsolescence. In all instances, the issue of an appropriate
entrepreneurial profit - the reward for undertaking the risk of construction, remains a highly subjective factor
especially in a market lacking significant speculative development.

THE SALES COMPARISON APPROACH

The Sales Comparison Approach is an estimate of value based upon a process of comparing recent sales of
similar properties in the surrounding or competing areas to the subject property. Inherent in this approach is the
principle of substitution.

The application of this approach consists of comparing the subject property with similar properties of the same
general type, which have been sold recently or currently are available for sale in competing areas. This
comparative process involves judgment as to the similarity of the subject property and the comparable sale with
respect to many value factors such as location, contract rent levels, quality of construction, reputation and
prestige, age and condition, among others. The estimated value through this approach represents the probable
price at which a willing seller would sell the subject property to a willing and knowledgeable buyer as of the date
of value.
AMERICAN APPRAISAL ASSOCIATES, INC. VALUATION PROCEDURE PAGE 21
STERLING APARTMENT HOMES, PHILADELPHIA, PENNSYLVANIA

THE INCOME CAPITALIZATION APPROACH

The theory of the Income Capitalization Approach is based on the premise that present value is the value of the
cash flow and reversionary value the property will produce over a reasonable holding (ownership) period.

The Discounted Cash Flow Analysis will convert equity cash flows (including cash flows and equity reversion)
into a present value utilizing an internal rate of return (or discount rate). The Internal Rate of Return (IRR) will be
derived from a comparison of alternate investments, a comparative analysis of IRR's used by recent buyers of
similar properties, and a review of published industry surveys.

The Direct Capitalization Analysis converts one year of income into an overall value using overall capitalization
rates from similar sales. The overall rates take into consideration buyers assumptions of the market over the long-
term.

The results of the Income Capitalization Analysis are usually the primary value indicator for income producing
properties. Investors expect a reasonable rate of return on their equity investment based on the ownership risks
involved; this approach closely parallels the investment decision process.

RECONCILIATION

In this instance, we have completed the Sales Comparison and Income Capitalization Approaches to value. As
an income producing property, the income approach is a primary approach to value. The Sales Comparison
Approach is also considered reliable as investors are buying similar buildings in the market.

Our research indicates that market participants are generally not buying, selling, investing, or lending with reliance
placed on the methodology of the Cost Approach to establish the value. Therefore, we have decided that the
Cost Approach is not a reliable indicator of value for the subject, and this approach has not been utilized.
AMERICAN APPRAISAL ASSOCIATES, INC. SALES COMPARISON APPROACH PAGE 22
STERLING APARTMENT HOMES, PHILADELPHIA, PENNSYLVANIA

                                      SALES COMPARISON APPROACH

Use of market or comparable sales requires the collection and analysis of comparable sales data. Similar
properties recently sold are compared to the subject and adjusted based on any perceived differences. This
method is based on the premise that the costs of acquiring a substitute property would tend to establish a value
for the subject property. The premise suggests that if a substitute is unavailable in the market, the reliability of the
approach may be subordinate to the other approaches.

The reliance on substitute properties produces shortcomings in the validity of this approach. Geographic and
demographic characteristics from each submarket restrict which sales may be selected. Recent sales with a
similar physical characteristics, income levels, and location are usually limited. The sales we have identified,
however, do establish general valuation parameters as well as provide support to our conclusion derived through
the income approach method.

The standard unit of comparison among similar properties is the sales price per unit and price per square foot of
net rentable area. To accurately adjust prices to satisfy the requirements of the sales comparison approach,
numerous calculations and highly subjective judgments would be required including consideration of numerous
income and expense details for which information may be unreliable or unknown. The sales price per unit and
square foot are considered relevant to the investment decision, but primarily as a parameter against which value
estimates derived through the income approach can be judged and compared.

In examining the comparable sales, we have applied a subjective adjustment analysis, which includes specific
adjustments derived from our experience and consulting with the market participants.

SALES COMPARISON ANALYSIS

Detailed on the following pages are sales transactions involving properties located in the subject's competitive
investment market.

Photographs of the sale transactions are located in the Addenda. Following the summary of sales is an adjustment
grid that is used to arrive at a value.
AMERICAN APPRAISAL ASSOCIATES, INC. SALES COMPARISON APPROACH PAGE 23
STERLING APARTMENT HOMES, PHILADELPHIA, PENNSYLVANIA

SUMMARY OF COMPARABLE SALES -IMPROVED

                                                                        COMPARABLE
         DESCRIPTION                      SUBJECT                          I - 1
------------------------------   --------------------------   ------------------------------    ----------
  Property Name                  Sterling Apartment Homes     Presidential City Apts            Cedarbrook

LOCATION:
  Address                        1815 John F. Kennedy         3900 City Line Avenue             8460 Limek
                                 Boulevard

  City, State                    Philadelphia, Pennsylvania   Philadelphia, Pennsylvania        Wyncote, P
  County                         Philadelphia                 Philadelphia                      Montgomery
PHYSICAL CHARACTERISTICS:
  Net Rentable Area (SF)         486,553                      1,044,824                         1,187,200
  Year Built                     1960                         1951                              1963
  Number of Units                536                          988                               896
  Unit Mix:                       Type     Total                          Type          Total               T
                                 EA10        32               Studio                      200   1Br/1Ba
                                 EB10       137               1Br/1Ba                     300   2Br/2Ba
                                 1A10        48               2Br/2Ba                     300   3Br/2Ba
                                 1B10       102               3Br/2Ba                     188
                                 1C10        21
                                 2A20       124
                                 2B20        32
                                 2C20         5
                                 3A20        24
                                 3B20         8
                                 3C20         2
                                 4A30         1
  Average Unit Size (SF)         908                          1,058                             1,325
  Land Area (Acre)               0.8909                       2.6500                            41.0000
  Density (Units/Acre)           601.6                        372.8                             21.9
  Parking Ratio (Spaces/Unit)    0.37                         1.0+                              1.0+
  Parking Type (Gr., Cov., etc.) Garage                       Open, Covered                     Open, Cove
CONDITION:                       Good                         Average                           Average
APPEAL:                          Good                         Average                           Good
AMENITIES:
  Pool/Spa                       Yes/No                       Yes/No                            Yes/No
  Gym Room                       Yes                          Yes                               Yes
  Laundry Room                   No                           No                                Yes
  Secured Parking                No                           No                                Yes
  Sport Courts                   No                           No                                Yes
  Washer/Dryer Connection        Yes                          Yes                               No
  Gated Security                                                                                Yes
  Business Center
OCCUPANCY:                       91%                          95%                               88%
TRANSACTION DATA:
  Sale Date                                                   May, 2002                         May, 2001
  Sale Price ($)                                              $81,000,000                       $88,100,00
  Grantor                                                     Ira Lubert & Dean Adler           Cedarbrook

  Grantee                                                     L.A.D. Presidential LP            Ceebraid-S
                                                                                                Transweste
  Sale Documentation                                          N/A                               N/A
  Verification                                                Buyer                             Buyer
  Telephone Number
ESTIMATED PRO-FORMA:                                          Total $     $/Unit       $/SF      Total $
  Potential Gross Income                                        $0          $0         $0.00   $17,711,50
  Vacancy/Credit Loss                                           $0          $0         $0.00   $ 2,125,38
                                                              -------------------------------------------
  Effective Gross Income                                        $0          $0         $0.00   $15,586,12
  Operating Expenses                                            $0          $0         $0.00   $ 8,394,00
                                                              -------------------------------------------
  Net Operating Income                                          $0          $0         $0.00   $ 7,192,12
                                                              -------------------------------------------
NOTES:                                                        No financial data was made       The buyer
                                                              available for this sale.         portions o
                                                                                               a cost of
  PRICE PER UNIT                                                         $81,984
  PRICE PER SQUARE FOOT                                                  $ 77.53
  EXPENSE RATIO                                                            N/A
  EGIM                                                                     N/A
  OVERALL CAP RATE                                                         N/A
Cap Rate based on Pro Forma or Actual Income?




                                                            COMPARABLE
                       DESCRIPTION                             I - 3
              ------------------------------     ------------------------------
                Property Name                    Berkshire Towers

              LOCATION:
                Address                          11215 Oak Leaf Drive
                City, State                      Silver Spring, Maryland
                County                           Montgomery
              PHYSICAL CHARACTERISTICS:
                Net Rentable Area (SF)           1,375,638
                Year Built                       1965
                Number of Units                  1,119
                Unit Mix:                                    Type           Total
                                                 1Br/1Ba                     495
                                                 2Br/2Ba                     396
                                                 3Br/2Ba                     228

                Average Unit Size (SF)           1,229
                Land Area (Acre)                 17.1900
                Density (Units/Acre)             65.1
                Parking Ratio (Spaces/Unit)      1.0+
                Parking Type (Gr., Cov., etc.)   Open, Covered
              CONDITION:                         Good
              APPEAL:                            Good
              AMENITIES:
                Pool/Spa                         Yes/Yes
                Gym Room                         Yes
                Laundry Room                     Yes
                Secured Parking                  No
                Sport Courts                     Yes
                Washer/Dryer Connection          No
                Gated Security                   Clubhouse
                Business Center                  Yes
              OCCUPANCY:                         95%
              TRANSACTION DATA:
                Sale Date                        May, 2003
                Sale Price ($)                   $130,000,000
                Grantor                          Berkshire Realty Holdings

                Grantee                          Stellar Management

                Sale Documentation               MGA-47781
                Verification                     Buyer
                Telephone Number
              ESTIMATED PRO-FORMA:                 Total $      $/Unit    $/SF
                Potential Gross Income           $14,761,620    $13,192 $10.73
                Vacancy/Credit Loss              $   738,081    $   660 $ 0.54
                                                 ------------------------------
                Effective Gross Income           $14,023,539    $12,532 $10.19
                Operating Expenses               $ 4,908,239    $ 4,386 $ 3.57
                                                 ------------------------------
                Net Operating Income             $ 9,115,300    $ 8,146 $ 6.63
                                                 ------------------------------
              NOTES:                             Property was completely
                                                 remodeled in 1997.

                PRICE PER UNIT                                      $116,175
                PRICE PER SQUARE FOOT                               $ 94.50
                EXPENSE RATIO                                           35.0%
                EGIM                                                    9.27
                OVERALL CAP RATE                                        7.01%
                Cap Rate based on Pro Forma or Actual Income?       PRO FORMA
AMERICAN APPRAISAL ASSOCIATES, INC. SALES COMPARISON APPROACH PAGE 24
STERLING APARTMENT HOMES, PHILADELPHIA, PENNSYLVANIA

                                          IMPROVED SALES MAP

                                                     [MAP]

IMPROVED SALES ANALYSIS

The improved sales indicate a sales price range from $81,984 to $116,175 per unit. Adjustments have been
made to the sales to reflect differences in location, age/condition and quality/appeal. Generally speaking, larger
properties typically have a lower price per unit when compared to smaller properties, all else being equal.
Similarly, those projects with a higher average unit size will generally have a higher price per unit. After
appropriate adjustments are made, the improved sales demonstrate an adjusted range for the subject from
$116,175 to $125,071 per unit with a mean or average adjusted price of $121,230 per unit. The median
adjusted price is $122,443 per unit. Based on the following analysis, we have concluded to a value of $120,000
per unit, which results in an "as is" value of $64,000,000 (rounded after necessary adjustment, if any).
AMERICAN APPRAISAL ASSOCIATES, INC. SALES COMPARISON APPROACH PAGE 25
STERLING APARTMENT HOMES, PHILADELPHIA, PENNSYLVANIA

SALES ADJUSTMENT GRID

                                                                              COMPARABLE
           DESCRIPTION                        SUBJECT                           I - 1
-----------------------------------   --------------------------       --------------------------
  Property Name                       Sterling Apartment Homes         Presidential City Apts
  Address                             1815 John F. Kennedy             3900 City Line Avenue
                                      Boulevard
  City                                Philadelphia, Pennsylvania       Philadelphia, Pennsylvania
  Sale Date                                                            May, 2002
  Sale Price ($)                                                       $81,000,000
  Net Rentable Area (SF)              486,553                          1,044,824
  Number of Units                     536                              988
  Price Per Unit                                                       $81,984
  Year Built                          1960                             1951
  Land Area (Acre)                    0.8909                           2.6500
VALUE ADJUSTMENTS                           DESCRIPTION                    DESCRIPTION      ADJ.
  Property Rights Conveyed            Fee Simple Estate                Fee Simple Estate     0%
  Financing                                                            Cash To Seller        0%
  Conditions of Sale                                                   Arm's Length          0%
  Date of Sale (Time)                                                  05-2002               3%
VALUE AFTER TRANS. ADJUST. ($/UNIT)                                    $ 84,443
  Location                                                             Inferior             10%
  Number of Units                     536                              988                   5%
  Quality / Appeal                    Good                             Inferior             10%
  Age / Condition                     1960                             1951 / Average       20%
  Occupancy at Sale                   91%                              95%                  -5%
  Amenities                           Good                             Inferior              5%
  Average Unit Size (SF)              908                              1,058                 0%
  Commercial Units                    Yes                              Comparable            0%
PHYSICAL ADJUSTMENT                                                                         45%
FINAL ADJUSTED VALUE ($/UNIT)                                          $ 122,443

                                                 COMPARABLE                       COMPARABLE
           DESCRIPTION                              I - 2                            I - 3
-----------------------------------   ------------------------------     --------------------------
  Property Name                       Cedarbrook Hill                    Berkshire Towers
  Address                             8460 Limekiln Pike                 11215 Oak Leaf Drive

  City                                Wyncote, Pennsylvania             Silver Spring, Maryland
  Sale Date                           May, 2001                         May, 2003
  Sale Price ($)                      $88,100,000                       $130,000,000
  Net Rentable Area (SF)              1,187,200                         1,375,638
  Number of Units                     896                               1,119
  Price Per Unit                      $98,326                           $116,175
  Year Built                          1963                              1965
  Land Area (Acre)                    41.0000                           17.1900
VALUE ADJUSTMENTS                          DESCRIPTION         ADJ.        DESCRIPTION      ADJ.
  Property Rights Conveyed            Fee Simple Estate         0%      Fee Simple Estate    0%
  Financing                           Cash To Seller            0%      Cash To Seller       0%
  Conditions of Sale                  Arm's Length              0%      Arm's Length         0%
  Date of Sale (Time)                 05-2001                   6%      05-2003              0%
VALUE AFTER TRANS. ADJUST. ($/UNIT)   $ 104,225                         $ 116,175
  Location                            Comparable                0%      Comparable           0%
  Number of Units                     896                       5%      1,119                5%
  Quality / Appeal                    Comparable                0%      Comparable           0%
  Age / Condition                     1963 / Average           20%      1965 / Good          0%
  Occupancy at Sale                   88%                       0%      95%                 -5%
  Amenities                           Comparable                0%      Superior            -5%
  Average Unit Size (SF)              1,325                    -5%      1,229               -5%
  Commercial Units                    Comparable                0%      Inferior            10%
PHYSICAL ADJUSTMENT                                            20%                           0%
FINAL ADJUSTED VALUE ($/UNIT)         $ 125,071                         $ 116,175




SUMMARY
                   VALUE RANGE (PER UNIT)                             $116,175 TO $125,071
                   MEAN (PER UNIT)                                    $121,230
                   MEDIAN (PER UNIT)                                  $122,443
                   VALUE CONCLUSION (PER UNIT)                        $120,000



                    VALUE OF IMPROVEMENT & MAIN SITE                           $64,320,000
                     LESS: LEASE-UP COST                                      -$   291,000
                    VALUE INDICATED BY SALES COMPARISON APPROACH               $64,029,000
                    ROUNDED                                                    $64,000,000




NET OPERATING INCOME (NOI) ANALYSIS

We have also conducted a net operating income (NOI) comparison analysis. The NOI effectively takes into
account the various physical, location, and operating aspects of the sale. When the subject's NOI is compared to
the sale NOI, a percent adjustment can be arrived at. The following table illustrates this analysis.
AMERICAN APPRAISAL ASSOCIATES, INC. SALES COMPARISON APPROACH PAGE 26
STERLING APARTMENT HOMES, PHILADELPHIA, PENNSYLVANIA

SALES COMPARISON APPROACH (NOI PER UNIT ANALYSIS)

                                       NOI PER UNIT COMPARISON

                      SALE PRICE                          NOI/            SUBJECT NOI
COMPARABLE    NO. OF ------------                   --------------       --------------    ADJUSTMENT      INDICATED
   NO.        UNITS   PRICE/UNIT           OAR         NOI/UNIT          SUBJ. NOI/UNIT      FACTOR        VALUE/UNIT
----------    ----- ------------         --------   --------------       --------------    ----------      ----------
   I-1         988   $ 81,000,000          N/A           N/A              $ 5,214,411
                     $     81,984                                         $      9,728
    I-2        896   $ 88,100,000         8.16%      $   7,192,120        $ 5,214,411            1.212     $   119,168
                     $     98,326                    $       8,027        $      9,728
    I-3       1119   $130,000,000         7.01%      $   9,115,300        $ 5,214,411            1.194     $   138,744
                     $    116,175                    $       8,146        $      9,728




                                                    PRICE/UNIT

                                Low               High        Average          Median
                              --------          --------      --------        --------
                              $119,168          $138,744      $128,956        $128,956




VALUE ANALYSIS BASED ON COMPARABLES NOI PER UNIT

                             Estimated Price Per Unit                     $   125,000
                             Number of Units                                      536
                             Value                                        $67,000,000
                               Less: Lease-Up Cost                       -$   291,000
                                                                         ------------
                             Value Based on NOI Analysis                  $66,709,000
                                                        Rounded           $66,700,000




The adjusted sales indicate a range of value between $119,168 and $138,744 per unit, with an average of
$128,956 per unit. Based on the subject's competitive position within the improved sales, a value of $125,000
per unit is estimated. This indicates an "as is" market value of $66,700,000 (rounded after necessary adjustment,
if any) for the NOI Per Unit Analysis.

EFFECTIVE GROSS INCOME MULTIPLIER (EGIM) ANALYSIS

The effective gross income multiplier (EGIM) is derived by dividing the sales price by the total effective gross
income. The following table illustrates the EGIMs for the comparable improved sales.

                     EFFECTIVE GROSS INCOME MULTIPLIER COMPARISON

                             SALE PRICE
   COMPARABLE     NO. OF    ------------      EFFECTIVE        OPERATING                     SUBJECT
       NO.        UNITS      PRICE/UNIT      GROSS INCOME       EXPENSE           OER     PROJECTED OER     EGIM
   ----------     ------    ------------     ------------     ------------       -----    -------------     ----
     I-1           988      $ 81,000,000          N/A             N/A
                            $     81,984
      I-2          896      $ 88,100,000     $ 15,586,120      $ 8,394,000      53.86%       40.47%         5.65
                            $     98,326
      I-3         1119      $130,000,000     $ 14,023,539      $ 4,908,239      35.00%                      9.27
                            $    116,175




                                                      EGIM
                          Low    High    Average    Median
                          ----   ----    -------    ------
                          5.65   9.27      7.46      7.46




VALUE ANALYSIS BASED ON EGIM'S OF COMPARABLE SALES

                 Estimate EGIM                                    7.50
                 Subject EGI                               $ 8,939,001
                 Value                                     $67,042,508
                   Less: Lease-Up Cost                    -$   291,000
                                                          ------------
                 Value Based on EGIM Analysis              $66,751,508
                                                Rounded    $66,800,000
                      Value Per Unit                       $   124,627
AMERICAN APPRAISAL ASSOCIATES, INC. SALES COMPARISON APPROACH PAGE 27
STERLING APARTMENT HOMES, PHILADELPHIA, PENNSYLVANIA

There is an inverse relationship, which generally holds among EGIMs and operating expenses. Properties, which
have higher expense ratios, typically sell for relatively less and therefore produce a lower EGIM. As will be
illustrated in the Income Capitalization Approach of this report, the subject's operating expense ratio (OER) is
estimated at 40.47% before reserves. The comparable sales indicate a range of expense ratios from 35.00% to
53.86%, while their EGIMs range from 5.65 to 9.27. Overall, we conclude to an EGIM of 7.50, which results in
an "as is" value estimate in the EGIM Analysis of $66,800,000.

SALES COMPARISON CONCLUSION

The three valuation methods in the Sales Comparison Approach are shown below. The overall value via the Sales
Comparison Approach is estimated at $66,000,000.

                              Price Per Unit                         $64,000,000
                              NOI Per Unit                           $66,700,000
                              EGIM Analysis                          $66,800,000

                              Sales Comparison Conclusion            $66,000,000
AMERICAN APPRAISAL ASSOCIATES, INC. INCOME CAPITALIZATION APPROACH PAGE
28
STERLING APARTMENT HOMES, PHILADELPHIA, PENNSYLVANIA

                                 INCOME CAPITALIZATION APPROACH

The income capitalization approach is based on the premise that value is created by the expectation of future
benefits. We estimated the present value of those benefits to derive an indication of the amount that a prudent,
informed purchaser-investor would pay for the right to receive them as of the date of value.

This approach requires an estimate of the NOI of a property. The estimated NOI is then converted to a value
indication by use of either the direct capitalization or the discounted cash flow analysis (yield capitalization).

Direct capitalization uses a single year's stabilized NOI as a basis for a value indication by dividing the income by
a capitalization rate. The rate chosen accounts for a recapture of the investment by the investor and should reflect
all factors that influence the value of the property, such as tenant quality, property condition, neighborhood
change, market trends, interest rates, and inflation. The rate may be extracted from local market transactions or,
when transaction evidence is lacking, obtained from trade sources.

A discounted cash flow analysis focuses on the operating cash flows expected from the property and the
proceeds of a hypothetical sale at the end of a holding period (the reversion). The cash flows and reversion are
discounted to their present values using a market-derived discount rate and are added together to obtain a value
indication. Because benefits to be received in the future are worth less than the same benefits received in the
present, this method weights income in the early years more heavily than the income and the sale proceeds to be
received later. The strength of the discounted cash flow method is its ability to recognize variations in projected
net income, such as those caused by inflation, stepped leases, neighborhood change, or tenant turnover. Its
weakness is that it requires many judgments regarding the actions of likely buyers and sellers of the property in
the future.

In some situations, both methods yield a similar result. The discounted cash flow method is typically more
appropriate for the analysis of investment properties with multiple or long-term leases, particularly leases with
cancellation clauses or renewal options. It is especially useful for multi-tenant properties in volatile markets. The
direct capitalization
AMERICAN APPRAISAL ASSOCIATES, INC. INCOME CAPITALIZATION APPROACH PAGE
29
STERLING APARTMENT HOMES, PHILADELPHIA, PENNSYLVANIA

method is normally more appropriate for properties with relatively stable operating histories and expectations.

A pro forma analysis for the first year of the investment is made to estimate a reasonable potential net operating
income for the Subject Property. Such an analysis entails an estimate of the gross income the property should
command in the marketplace. From this total gross income must be deducted an allowance for vacancy/collection
loss and operating expenses as dictated by general market conditions and the overall character of the subject's
tenancy and leased income to arrive at a projected estimate of net operating income. Conversion of the net
operating income to an indication of value is accomplished by the process of capitalization, as derived primarily
from market data.

MARKET RENT ANALYSIS

In order to determine a market rental rate for the subject, a survey of competing apartment communities was
performed. This survey was displayed previously in the market analysis section of the report. Detailed information
pertaining to each of the comparable rental communities, along with photographs, is presented in the Addenda of
this report.

The following charts display the subject's current asking and actual rent rates as well as a comparison with the
previous referenced comparable rental properties.

                               SUMMARY OF ACTUAL AVERAGE RENTS

                                                      Average
                               Unit Area     -----------------------
                 Unit Type     (Sq. Ft.)     Per Unit         Per SF       %Occupied
                 --------------------------------------------------------------------
                 EA10             412         $ 896          $ 2.17           81.3%
                 EB10             495         $ 941          $ 1.90           89.1%
                 1A10             550         $1,184         $ 2.15           95.6%
                 1B10             803         $1,302         $ 1.62           92.4%
                 1C10             920         $1,509         $ 1.64          100.0%
                 2A20            1315         $1,772         $ 1.35           90.9%
                 2B20            1425         $2,189         $ 1.54           96.8%
                 2C20            1794         $2,569         $ 1.43          100.0%
                 3A20            1631         $2,251         $ 1.38           90.9%
                 3B20            1778         $2,509         $ 1.41          100.0%
                 3C20            2215         $2,794         $ 1.26          100.0%
                 4A30            2500         $2,459         $ 0.98            0.0%
AMERICAN APPRAISAL ASSOCIATES, INC. INCOME CAPITALIZATION APPROACH PAGE
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STERLING APARTMENT HOMES, PHILADELPHIA, PENNSYLVANIA

                                       RENT ANALYSIS

                                                                              COMPARABLE RENTS
                                                              -------------------------------------------
                                                                  R-1           R-2        R-3           R
                                                              -------------------------------------------
                                                              The Lofts at Park Towne      1500     Locus
                                                               1835 Arch       Place      Locust     The
                                                              -------------------------------------------
                                         SUBJECT   SUBJECT                   COMPARISON TO SUBJECT
                          SUBJECT UNIT    ACTUAL    ASKING    -------------------------------------------
      DESCRIPTION             TYPE         RENT      RENT        Similar     Inferior     Superior     Si
---------------------------------------------------------------------------------------------------------
Monthly Rent                  EA10        $ 896     $ 909                     $ 819
Unit Area (SF)                               412       412                       460
Monthly Rent Per Sq. Ft.                  $ 2.17    $ 2.21                    $ 1.78

Monthly Rent                  EB10        $  941    $  949                                  $1,100       $
Unit Area (SF)                               495       495                                     497
Monthly Rent Per Sq. Ft.                  $ 1.90    $ 1.92                                  $ 2.21       $

Monthly Rent                  1A10        $1,184    $1,199
Unit Area (SF)                               550       550
Monthly Rent Per Sq. Ft.                  $ 2.15    $ 2.18

Monthly Rent                  1B10        $1,302    $1,399       $1,400            $1,024   $1,505       $
Unit Area (SF)                               803       803          815               715      795
Monthly Rent Per Sq. Ft.                  $ 1.62    $ 1.74       $ 1.72            $ 1.43   $ 1.89       $

Monthly Rent                  1C10        $1,509    $1,489       $1,750                     $1,700
Unit Area (SF)                               920       920          950                        898
Monthly Rent Per Sq. Ft.                  $ 1.64    $ 1.62       $ 1.84                     $ 1.89

Monthly Rent                  2A20        $1,772    $1,749       $2,200            $1,629   $2,183       $
Unit Area (SF)                             1,315     1,315        1,275             1,043    1,113
Monthly Rent Per Sq. Ft.                  $ 1.35    $ 1.33       $ 1.73            $ 1.56   $ 1.96       $

Monthly Rent                  2B20        $2,189    $1,899                                  $2,335
Unit Area (SF)                             1,425     1,425                                   1,264
Monthly Rent Per Sq. Ft.                  $ 1.54    $ 1.33                                  $ 1.85

Monthly Rent                  2C20        $2,569    $2,339
Unit Area (SF)                             1,794     1,794
Monthly Rent Per Sq. Ft.                  $ 1.43    $ 1.30

Monthly Rent                  3A20        $2,251    $2,209                         $1,839
Unit Area (SF)                             1,631     1,631                          1,223
Monthly Rent Per Sq. Ft.                  $ 1.38    $ 1.35                         $ 1.50

Monthly Rent                  3B20        $2,509    $2,299
Unit Area (SF)                             1,778     1,778
Monthly Rent Per Sq. Ft.                  $ 1.41    $ 1.29

Monthly Rent                  3C20        $2,794    $2,509
Unit Area (SF)                             2,215     2,215
Monthly Rent Per Sq. Ft.                  $ 1.26    $ 1.13

Monthly Rent                  4A30        $2,459    $2,459                         $2,074
Unit Area (SF)                             2,500     2,500                          1,465
Monthly Rent Per Sq. Ft.                  $ 0.98    $ 0.98                         $ 1.42

                           SUBJECT UNIT
       DESCRIPTION            TYPE         MIN        MAX     MEDIAN    AVERAGE
-------------------------------------------------------------------------------
Monthly Rent                  EA10        $ 819     $ 819     $ 819     $ 819
Unit Area (SF)                               460       460       460       460
Monthly Rent Per Sq. Ft.                  $ 1.78    $ 1.78    $ 1.78    $ 1.78

Monthly Rent                  EB10        $1,100    $1,125    $1,113      $1,113
Unit Area (SF)                               497       528       513         513
Monthly Rent Per Sq. Ft.                  $ 2.13    $ 2.21    $ 2.17      $ 2.17
Monthly Rent                       1A10
Unit Area (SF)
Monthly Rent Per Sq. Ft.

Monthly Rent                       1B10           $1,024     $1,505      $1,398      $1,331
Unit Area (SF)                                       715        815         802         784
Monthly Rent Per Sq. Ft.                          $ 1.43     $ 1.89      $ 1.72      $ 1.69

Monthly Rent                       1C10           $1,700     $1,750      $1,725      $1,725
Unit Area (SF)                                       898        950         924         924
Monthly Rent Per Sq. Ft.                          $ 1.84     $ 1.89      $ 1.87      $ 1.87

Monthly Rent                       2A20           $1,629     $2,200      $2,067      $1,991
Unit Area (SF)                                     1,043      1,275       1,162       1,161
Monthly Rent Per Sq. Ft.                          $ 1.56     $ 1.96      $ 1.67      $ 1.71

Monthly Rent                       2B20           $2,335     $2,335      $2,335      $2,335
Unit Area (SF)                                     1,264      1,264       1,264       1,264
Monthly Rent Per Sq. Ft.                          $ 1.85     $ 1.85      $ 1.85      $ 1.85

Monthly Rent                       2C20
Unit Area (SF)
Monthly Rent Per Sq. Ft.

Monthly Rent                       3A20           $1,839     $1,839      $1,839      $1,839
Unit Area (SF)                                     1,223      1,223       1,223       1,223
Monthly Rent Per Sq. Ft.                          $ 1.50     $ 1.50      $ 1.50      $ 1.50

Monthly Rent                       3B20
Unit Area (SF)
Monthly Rent Per Sq. Ft.

Monthly Rent                       3C20
Unit Area (SF)
Monthly Rent Per Sq. Ft.

Monthly Rent                       4A30           $2,074     $2,074      $2,074      $2,074
Unit Area (SF)                                     1,465      1,465       1,465       1,465
Monthly Rent Per Sq. Ft.                          $ 1.42     $ 1.42      $ 1.42      $ 1.42




CONCLUDED MARKET RENTAL RATES AND TERMS

Based on this analysis above, the subject's concluded market rental rates and gross rental income is calculated as
follows:
AMERICAN APPRAISAL ASSOCIATES, INC. INCOME CAPITALIZATION APPROACH PAGE
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STERLING APARTMENT HOMES, PHILADELPHIA, PENNSYLVANIA

                              GROSS RENTAL INCOME PROJECTION

                                                  Market Rent
                                 Unit Area   -------------------     Monthly        Annual
     Unit Type Number of Units (Sq. Ft.)      Per Unit    Per SF      Income        Income
     ----------------------------------------------------------------------------------------
     EA10             32             412     $      899    $2.18    $   28,768    $ 345,216
     EB10            137             495     $      949    $1.92    $ 130,013     $1,560,156
     1A10             48             550     $    1,149    $2.09    $   55,152    $ 661,824
     1B10            102             803     $    1,379    $1.72    $ 140,658     $1,687,896
     1C10             21             920     $    1,509    $1.64    $   31,689    $ 380,268
     2A20            124           1,315     $    1,759    $1.34    $ 218,116     $2,617,392
     2B20             32           1,425     $    2,109    $1.48    $   67,488    $ 809,856
     2C20              5           1,794     $    2,449    $1.37    $   12,245    $ 146,940
     3A20             24           1,631     $    2,229    $1.37    $   53,496    $ 641,952
     3B20              8           1,778     $    2,359    $1.33    $   18,872    $ 226,464
     3C20              2           2,215     $    2,499    $1.13    $    4,998    $   59,976
     4A30              1           2,500     $    2,459    $0.98    $    2,459    $   29,508
                                                           ---------------------------------
                                                           Total    $ 763,954     $9,167,448




PRO FORMA ANALYSIS

For purposes of this appraisal, we were provided with income and expense data for the subject property. A
summary of this data is presented on the following page.
AMERICAN APPRAISAL ASSOCIATES, INC. INCOME CAPITALIZATION APPROACH PAGE
32
STERLING APARTMENT HOMES, PHILADELPHIA, PENNSYLVANIA

SUMMARY OF HISTORICAL INCOME & EXPENSES

                               FISCAL YEAR       2000       FISCAL YEAR         2001   FISCAL YEAR         2
                             ----------------------------------------------------------------------------
                                      ACTUAL                      ACTUAL                      ACTUAL
                             ----------------------------------------------------------------------------
       DESCRIPTION              TOTAL        PER UNIT       TOTAL          PER UNIT     TOTAL          PER U
---------------------------------------------------------------------------------------------------------
Revenues
  Rental Income              $8,342,210    $    15,564   $8,855,683      $    16,522 $9,139,066      $    17

  Vacancy                    $ 502,931     $      938    $ 478,155     $      892    $ 844,922     $    1
  Credit Loss/Concessions    $   18,839    $       35    $   28,274    $       53    $   79,026    $
                             ----------------------------------------------------------------------------
    Subtotal                 $ 521,770     $      973    $ 506,429     $      945    $ 923,948     $    1

  Laundry Income             $        0    $        0    $        0    $        0    $        0    $
  Garage Revenue             $        0    $        0    $        0    $        0    $        0    $
  Other Misc. Revenue        $ 358,833     $      669    $ 366,006     $      683    $ 458,161     $
                             ----------------------------------------------------------------------------
    Subtotal Other Income    $ 358,833     $      669    $ 366,006     $      683    $ 458,161     $

                             ----------------------------------------------------------------------------
Effective Gross Income       $8,179,273    $   15,260    $8,715,260    $   16,260    $8,673,279    $   16

Operating Expenses
  Taxes                      $ 454,883      $      849    $ 639,413      $    1,193    $ 641,270     $     1
  Insurance                  $   62,262     $      116    $ 128,240      $      239    $ 122,284     $
  Utilities                  $1,052,106     $    1,963    $1,142,411     $    2,131    $1,016,569    $     1
  Repair & Maintenance       $   64,655     $      121    $   55,249     $      103    $   45,412    $
  Cleaning                   $ 522,451      $      975    $ 506,709      $      945    $ 496,132     $
  Landscaping                $        0     $        0    $        0     $        0    $        0    $
  Security                   $        0     $        0    $        0     $        0    $        0    $
  Marketing & Leasing        $   38,977     $       73    $   38,468     $       72    $   37,528    $
  General Administrative     $   61,275     $      114    $   91,888     $      171    $   91,216    $
  Management                 $ 412,405      $      769    $ 457,317      $      853    $ 432,824     $
  Miscellaneous              $ 587,943      $    1,097    $ 667,060      $    1,245    $ 545,058     $     1

                             ----------------------------------------------------------------------------
Total Operating Expenses     $3,256,957    $    6,076    $3,726,755    $    6,953    $3,428,293    $    6

  Reserves                   $         0    $        0    $         0    $        0    $         0   $

                             ----------------------------------------------------------------------------
Net Income                   $4,922,316    $    9,183    $4,988,505    $    9,307    $5,244,986    $    9

                              FISCAL YEAR        2003       ANNUALIZED         2003
                             ------------------------------------------------------
                                MANAGEMENT BUDGET                PROJECTION                     AAA PROJEC
                             ----------------------------------------------------------------------------
       DESCRIPTION              TOTAL        PER UNIT      TOTAL          PER UNIT      TOTAL         PER U
---------------------------------------------------------------------------------------------------------
Revenues
  Rental Income              $9,343,212    $    17,431   $9,117,800     $    17,011  $9,167,448     $    17

  Vacancy                    $ 615,000     $    1,147    $ 822,888     $    1,535    $ 458,372     $
  Credit Loss/Concessions    $   12,000    $       22    $ 215,400     $      402    $   91,674    $
                             ----------------------------------------------------------------------------
    Subtotal                 $ 627,000     $    1,170    $1,038,288    $    1,937    $ 550,047     $    1

  Laundry Income             $        0    $        0    $        0    $        0    $        0    $
  Garage Revenue             $        0    $        0    $        0    $        0    $        0    $
  Other Misc. Revenue        $ 296,831     $      554    $ 342,992     $      640    $ 321,600     $
                             ----------------------------------------------------------------------------
    Subtotal Other Income    $ 296,831     $      554    $ 342,992     $      640    $ 321,600     $

                             ----------------------------------------------------------------------------
Effective Gross Income       $9,013,043    $   16,815    $8,422,504    $   15,714    $8,939,001    $   16

Operating Expenses
  Taxes                      $   781,506    $    1,458    $   684,124    $    1,276    $   696,800   $     1
  Insurance                  $   147,716    $      276    $   131,764    $      246    $   147,400   $
  Utilities                        $1,103,000       $     2,058     $1,713,536       $     3,197      $1,072,000      $   2
  Repair & Maintenance             $   64,100       $       120     $   21,764       $        41      $   64,320      $
  Cleaning                         $ 514,800        $       960     $ 573,604        $     1,070      $ 522,600       $
  Landscaping                      $        0       $         0     $        0       $         0      $        0      $
  Security                         $        0       $         0     $        0       $         0      $        0      $
  Marketing & Leasing              $   36,000       $        67     $   77,884       $       145      $   37,520      $
  General Administrative           $ 100,500        $       188     $ 128,980        $       241      $   93,800      $
  Management                       $ 456,547        $       852     $ 431,128        $       804      $ 446,950       $
  Miscellaneous                    $ 522,538        $       975     $ 468,612        $       874      $ 536,000       $   1

                                   ----------------------------------------------------------------------------
Total Operating Expenses           $3,726,707    $    6,953    $4,231,396    $    7,894    $3,617,390    $    6

  Reserves                         $          0     $         0     $          0     $          0     $   107,200     $

                                   ----------------------------------------------------------------------------
Net Income                         $5,286,336    $    9,863    $4,191,108    $    7,819    $5,214,411    $    9




REVENUES AND EXPENSES

The subject's revenue and expense projections are displayed on the previous chart. Rental income is based on
the market analysis previously discussed. Other income consists of forfeited deposits, laundry income, late rent
payments, month to month fees, pet fees, vending machine revenue, etc.

We forecasted the property's annual operating expenses after reviewing its historical performance at the subject
property. We analyzed each item of expense and attempted to forecast amounts a typical informed investor
would consider reasonable.

VACANCY AND COLLECTION LOSS

An investor is primarily interested in the annual revenue an income property is likely to produce over a specified
period of time, rather than the income it could produce if it were always 100% occupied and all tenants were
paying their rent in full and on time. An investor normally expects some income loss as tenants vacate, fail to pay
rent, or pay their rent late.

We have projected a stabilized vacancy and collection loss rate of 6% based on the subject's historical
performance, as well as the anticipated future market conditions.
AMERICAN APPRAISAL ASSOCIATES, INC. INCOME CAPITALIZATION APPROACH PAGE
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STERLING APARTMENT HOMES, PHILADELPHIA, PENNSYLVANIA

RESERVES FOR REPLACEMENT

"Reserves for replacements" is a contingency account allocated to the expenses of the property to provide for
replacement of short-lived items and for unforeseen necessary capital expenditures. We have utilized the Korpacz
Real Estate Investor Survey of the national apartment market, which reports a range of replacement reserves
between $150 and $400 per unit. For purposes of this analysis, we have included an allowance of $200 per unit
for reserves for replacement.

CAPITAL EXPENDITURES

Capital expenditures represent expenses for immediate repair or replacement of items that have average to long
lives. Based on our inspection of the property as well as discussions with property management personnel, there
are no major items remaining in need of repair or replacement that would require an expense beyond our reserves
for replacement. Therefore an allowance of $200 per unit should be satisfactory in our reserves for replacement
to cover future capital expenditures.

DISCOUNTED CASH FLOW ANALYSIS

As the subject is a multi-tenant income property, the Discounted Cash Flow Method is considered appropriate.
This method is especially meaningful in that it isolates the timing of the annual cash flows and discounts them,
along with the expected equity reversion, to a present value. The present value of the cash flow is added to the
present value of the reversion, resulting in a total property value.

INVESTMENT CRITERIA

Appropriate investment criteria will be derived for the subject based upon analysis of comparable sales and a
survey of real estate investors. The following table summarizes the findings of Korpacz National Investor Survey
for the most recent period.

                              KORPACZ NATIONAL INVESTOR SURVEY
                                      1ST QUARTER 2003
                                NATIONAL APARTMENT MARKET

                                                 CAPITALIZATION RATES
                                   ---------------------------------------------
                                        GOING-IN                 TERMINAL
                                   ---------------------------------------------
                                    LOW           HIGH     LOW             HIGH
                      ----------------------------------------------------------
                      RANGE        6.00%         10.00%   7.00%           10.00%
                      AVERAGE             8.14%                   8.47%
AMERICAN APPRAISAL ASSOCIATES, INC. INCOME CAPITALIZATION APPROACH PAGE
34
STERLING APARTMENT HOMES, PHILADELPHIA, PENNSYLVANIA

                                          SUMMARY OF OVERALL
                                          CAPITALIZATION RATES

                          COMP. NO. SALE DATE      OCCUP.     PRICE/UNIT   OAR
                          ------------------------------------------------------
                            I-1        May-02       95%       $ 81,984     N/A
                            I-2        May-01       88%       $ 98,326    8.16%
                            I-3        May-03       95%       $116,175    7.01%
                            I-4         N/A         N/A                    N/A
                            I-5         N/A         N/A                    N/A
                                                                  High    8.16%
                                                                   Low    7.01%
                                                               Average    7.59%




Based on this information, we have concluded the subject's overall capitalization rate should be 8.00%. The
terminal capitalization rate is applied to the net operating income estimated for the year following the end of the
holding period. Based on the concluded overall capitalization rate, the age of the property and the surveyed
information, we have concluded the subject's terminal capitalization rate to be 8.50%. Finally, the subject's
discount rate or yield rate is estimated based on the previous investor survey and an examination of returns
available on alternative investments in the market. Based on this analysis, the subject's discount rate is estimated
to be 10.50%.

HOLDING PERIOD

The survey of investors indicates that most investors are completing either 10-year cash flows or extending the
analysis to the end of the lease if it is more than 10-years. A 10-year period has been used in the analysis of the
subject with the eleventh year stabilized NOI used to determine the reversion.

SELLING COSTS

Sales of similar size properties are typically accomplished with the aid of a broker and will also incur legal and
other transaction related cost. Based on our survey of brokers and a review of institutional investor projections,
an allowance of 2.00% of the sale amount is applied.

DISCOUNTED CASH FLOW CONCLUSION

Discounting the annual cash flows and the equity reversion at the selected rate of 10.50% indicates a value of
$63,900,000. In this instance, the reversion figure contributes
AMERICAN APPRAISAL ASSOCIATES, INC. INCOME CAPITALIZATION APPROACH PAGE
35
STERLING APARTMENT HOMES, PHILADELPHIA, PENNSYLVANIA

approximately 44% of the total value. Investors surveyed for this assignment indicated they would prefer to have
the cash flow contribute anywhere from 50% to 60%. Overall, the blend seems reasonable. The cash flow and
pricing matrix are located on the following pages.
AMERICAN APPRAISAL ASSOCIATES, INC. INCOME CAPITALIZATION APPROACH PAGE
36
STERLING APARTMENT HOMES, PHILADELPHIA, PENNSYLVANIA

                              STERLING APARTMENT HOMES

              YEAR                      APR-2004       APR-2005       APR-2006       APR-2007       APR-2
          FISCAL YEAR                       1              2              3              4              5
---------------------------------------------------------------------------------------------------------
REVENUE
  Base Rent                            $ 9,167,448    $ 9,167,448    $ 9,442,471    $ 9,725,746    $10,01

  Vacancy                              $   715,103    $   548,575    $   472,124    $   486,287    $   50
  Credit Loss                          $    91,674    $    91,674    $    94,425    $    97,257    $   10
  Concessions                          $         0    $         0    $         0    $         0    $
                                       ------------------------------------------------------------------
    Subtotal                           $   806,777    $   640,249    $   566,548    $   583,545    $   60

  Laundry Income                       $         0    $         0    $         0    $         0    $
  Garage Revenue                       $         0    $         0    $         0    $         0    $
  Other Misc. Revenue                  $   321,600    $   321,600    $   331,248    $   341,185    $   35
                                       ------------------------------------------------------------------
    Subtotal Other Income              $   321,600    $   321,600    $   331,248    $   341,185    $   35
                                       ------------------------------------------------------------------
EFFECTIVE GROSS INCOME                 $ 8,682,271    $ 8,848,799    $ 9,207,171    $ 9,483,386    $ 9,76

OPERATING EXPENSES:
  Taxes                                $   696,800    $   717,704    $   739,235    $   761,412    $   78
  Insurance                            $   147,400    $   151,822    $   156,377    $   161,068    $   16
  Utilities                            $ 1,072,000    $ 1,104,160    $ 1,137,285    $ 1,171,403    $ 1,20
  Repair & Maintenance                 $    64,320    $    66,250    $    68,237    $    70,284    $    7
  Cleaning                             $   522,600    $   538,278    $   554,426    $   571,059    $   58
  Landscaping                          $         0    $         0    $         0    $         0    $
  Security                             $         0    $         0    $         0    $         0    $
  Marketing & Leasing                  $    37,520    $    38,646    $    39,805    $    40,999    $    4
  General Administrative               $    93,800    $    96,614    $    99,512    $   102,498    $   10
  Management                           $   434,114    $   442,440    $   460,359    $   474,169    $   48
  Miscellaneous                        $   536,000    $   552,080    $   568,642    $   585,702    $   60
                                       ------------------------------------------------------------------
TOTAL OPERATING EXPENSES               $ 3,604,554    $ 3,707,993    $ 3,823,878    $ 3,938,595    $ 4,05

  Reserves                             $   107,200    $   110,416    $   113,728    $   117,140    $   12
                                       ------------------------------------------------------------------
NET OPERATING INCOME                   $ 4,970,517    $ 5,030,389    $ 5,269,564    $ 5,427,651    $ 5,59
=========================================================================================================

  Operating Expense Ratio (% of EGI)          41.5%          41.9%          41.5%          41.5%
  Operating Expense Per Unit           $     6,725    $     6,918    $     7,134    $     7,348    $

              YEAR                      APR-2010       APR-2011       APR-2012       APR-2013       APR-2
          FISCAL YEAR                       7              8              9             10             11
---------------------------------------------------------------------------------------------------------
REVENUE
  Base Rent                            $10,627,585    $10,946,412    $11,274,805    $11,613,049    $11,96

  Vacancy                              $   531,379    $   547,321    $   563,740    $   580,652    $   59
  Credit Loss                          $   106,276    $   109,464    $   112,748    $   116,130    $   11
  Concessions                          $         0    $         0    $         0    $         0    $
                                       ------------------------------------------------------------------
    Subtotal                           $   637,655    $   656,785    $   676,488    $   696,783    $   71

  Laundry Income                       $         0    $         0    $         0    $         0    $
  Garage Revenue                       $         0    $         0    $         0    $         0    $
  Other Misc. Revenue                  $   372,823    $   384,007    $   395,527    $   407,393    $   41
                                       ------------------------------------------------------------------
    Subtotal Other Income              $   372,823    $   384,007    $   395,527    $   407,393    $   41
                                       ------------------------------------------------------------------
EFFECTIVE GROSS INCOME                 $10,362,752    $10,673,635    $10,993,844    $11,323,659    $11,66

OPERATING EXPENSES:
  Taxes                                $   832,016    $   856,976    $   882,685    $   909,166    $   93
  Insurance                            $   176,003    $   181,283    $   186,722    $   192,324    $   19
  Utilities                            $ 1,280,024    $ 1,318,425    $ 1,357,978    $ 1,398,717    $ 1,44
  Repair & Maintenance                 $    76,801    $    79,105    $    81,479    $    83,923    $    8
  Cleaning                             $   624,012    $   642,732    $   662,014    $   681,874    $   70
  Landscaping                          $         0    $         0    $         0    $         0    $
  Security                             $         0    $         0    $         0    $         0    $
  Marketing & Leasing                  $    44,801    $    46,145    $    47,529    $    48,955    $    5
  General Administrative               $   112,002    $   115,362    $   118,823    $   122,388    $   12
  Management                           $   518,138    $   533,682    $   549,692    $   566,183    $   58
  Miscellaneous                        $   640,012    $   659,212    $   678,989    $   699,358    $   72
                                       ------------------------------------------------------------------
TOTAL OPERATING EXPENSES               $ 4,303,809    $ 4,432,923    $ 4,565,911    $ 4,702,888    $ 4,84

  Reserves                             $   128,002    $   131,842    $   135,798    $   139,872    $   14
                                       ------------------------------------------------------------------
NET OPERATING INCOME                   $ 5,930,941    $ 6,108,869    $ 6,292,135    $ 6,480,899    $ 6,67
=========================================================================================================

  Operating Expense Ratio (% of EGI)          41.5%             41.5%             41.5%          41.5%
  Operating Expense Per Unit           $     8,029    $        8,270    $        8,518    $     8,774      $




   Estimated Stabilized NOI                $ 5,214,411      Sales Expense Rate                 2.00%
   Months to Stabilized                             24      Discount Rate                     10.50%
   Stabilized Occupancy                           95.0%     Terminal Cap Rate                  8.50%




                                  "DCF" VALUE ANALYSIS

Gross Residual Sale Price              $78,533,252        Deferred Maintenance            $            0
 Less: Sales Expense                   $ 1,570,665        Add: Excess Land                $            0
                                       -----------
Net Residual Sale Price                $76,962,587        Other Adjustments               $         0
PV of Reversion                        $28,356,778                                        -----------
Add: NPV of NOI                        $35,592,791        Value Indicated By "DCF"        $63,949,568
                                       -----------                Rounded                 $63,900,000
PV Total                               $63,949,568




                              "DCF" VALUE SENSITIVITY TABLE

                                                        DISCOUNT RATE
                             ------------------------------------------------------------------
          TOTAL VALUE          10.00%         10.25%        10.50%        10.75%       11.00%
-----------------------------------------------------------------------------------------------
                     8.00%   $67,990,945   $66,843,662   $65,721,867   $64,624,911 $63,552,161
                     8.25%   $67,035,583   $65,909,744   $64,808,865   $63,732,310 $62,679,462
TERMINAL CAP RATE    8.50%   $66,136,419   $65,030,762   $63,949,568   $62,892,215 $61,858,097
                     8.75%   $65,288,636   $64,202,008   $63,139,375   $62,100,125 $61,083,668
                     9.00%   $64,487,952   $63,419,296   $62,374,192   $61,352,041 $60,352,262
AMERICAN APPRAISAL ASSOCIATES, INC. INCOME CAPITALIZATION APPROACH PAGE
37
STERLING APARTMENT HOMES, PHILADELPHIA, PENNSYLVANIA

INCOME LOSS DURING LEASE-UP

The subject is currently 91% occupied, below our stabilized occupancy projection. We have estimated a 24-
month lease-up period. An adjustment must be made to bring the subject to a stabilized operating level. To
account for this income loss during lease-up, we have compared the current DCF analysis to an "as stabilized"
DCF analysis assuming the subject's occupancy were stabilized. The difference in net operating income during the
lease-up period is discounted to a present value figure of $291,000 as shown in the following table.

                                    INCOME LOSS DURING LEASE-UP

                             DESCRIPTION                    YEAR 1         YEAR 2
                   ----------------------------------------------------------------
                   "As Is" Net Operating Income           $4,970,517     $5,030,389
                   Stabilized Net Operating Income        $5,214,411     $5,116,082

                                                                  ----------        ----------
                   Difference                                     $ 243,894         $   85,692
                   PV of Income Loss During Lease-Up              $ 290,899
                                                                  ----------

                                     Rounded                      $ 291,000
                                                                  ----------




CONCESSIONS

Concessions have historically not been utilized at the subject property or in the subject's market. Therefore, no
adjustment was included for concessions.

DIRECT CAPITALIZATION METHOD

After having projected the income and expenses for the property, the next step in the valuation process is to
capitalize the net income into an estimate of value. The selected overall capitalization rate ("OAR") covers both
return on and return of capital. It is the overall rate of return an investor expects.

After considering the market transactions and the investor surveys, we previously conclude that an overall rate of
8.00% percent is applicable to the subject. The results of our direct capitalization analysis are as follows:
AMERICAN APPRAISAL ASSOCIATES, INC. INCOME CAPITALIZATION APPROACH PAGE
38
STERLING APARTMENT HOMES, PHILADELPHIA, PENNSYLVANIA

                              STERLING APARTMENT HOMES

                                                      TOTAL         PER SQ. FT.       PER UNIT      %OF E
---------------------------------------------------------------------------------------------------------
REVENUE
  Base Rent                                        $ 9,167,448      $    18.84      $    17,103

  Less: Vacancy & Collection Loss      6.00%       $     550,047    $     1.13      $     1,026

  Plus: Other Income
    Laundry Income                                 $          0     $     0.00      $        0        0.0
    Garage Revenue                                 $          0     $     0.00      $        0        0.0
    Other Misc. Revenue                            $    321,600     $     0.66      $      600        3.6
                                                   ------------------------------------------------------
      Subtotal Other Income                        $    321,600     $     0.66      $      600        3.6

EFFECTIVE GROSS INCOME                             $   8,939,001    $    18.37      $    16,677

OPERATING EXPENSES:
  Taxes                                            $     696,800    $     1.43      $     1,300       7.8
  Insurance                                        $     147,400    $     0.30      $       275       1.6
  Utilities                                        $   1,072,000    $     2.20      $     2,000      11.9
  Repair & Maintenance                             $      64,320    $     0.13      $       120       0.7
  Cleaning                                         $     522,600    $     1.07      $       975       5.8
  Landscaping                                      $           0    $     0.00      $         0       0.0
  Security                                         $           0    $     0.00      $         0       0.0
  Marketing & Leasing                              $      37,520    $     0.08      $        70       0.4
  General Administrative                           $      93,800    $     0.19      $       175       1.0
  Management                           5.00%       $     446,950    $     0.92      $       834       5.0
  Miscellaneous                                    $     536,000    $     1.10      $     1,000       6.0

TOTAL OPERATING EXPENSES                           $   3,617,390    $     7.43      $     6,749      40.4

  Reserves                                         $    107,200     $     0.22      $      200        1.2
                                                   ------------------------------------------------------
NET OPERATING INCOME                               $ 5,214,411      $    10.72      $    9,728       58.3

                                                   ======================================================

  "GOING IN" CAPITALIZATION RATE                            8.00%

  VALUE INDICATION                                 $ 65,180,138     $   133.96      $   121,605

  LESS: LEASE-UP COST                             ($     291,000)

  "AS IS" VALUE INDICATION
    (DIRECT CAPITALIZATION APPROACH)               $ 64,889,138

               ROUNDED                             $ 64,900,000     $   133.39      $   121,082
AMERICAN APPRAISAL ASSOCIATES, INC. INCOME CAPITALIZATION APPROACH PAGE
39
STERLING APARTMENT HOMES, PHILADELPHIA, PENNSYLVANIA

                       DIRECT CAPITALIZATION VALUE SENSITIVITY TABLE

                        CAP RATE     VALUE         ROUNDED      $/UNIT     $/SF
                        ---------------------------------------------------------
                          7.25%   $ 71,631,911   $71,600,000   $133,582   $147.16
                          7.50%   $ 69,234,481   $69,200,000   $129,104   $142.22
                          7.75%   $ 66,991,723   $67,000,000   $125,000   $137.70
                          8.00%   $ 64,889,138   $64,900,000   $121,082   $133.39
                          8.25%   $ 62,913,983   $62,900,000   $117,351   $129.28
                          8.50%   $ 61,055,013   $61,100,000   $113,993   $125.58
                          8.75%   $ 59,302,269   $59,300,000   $110,634   $121.88




CONCLUSION BY THE DIRECT CAPITALIZATION METHOD

Applying the capitalization rate to our estimated NOI results in an estimated value of $64,900,000.

CORRELATION AND CONCLUSION BY THE INCOME APPROACH

The two methods used to estimate the market value of the subject property by the income approach resulted in
the following indications of value:

                              Discounted Cash Flow Analysis               $63,900,000
                              Direct Capitalization Method                $64,900,000




Giving consideration to the indicated values provided by both techniques, we have concluded the estimated value
by the income capitalization approach to be $64,500,000.

DISCOUNTED CASH FLOW ANALYSIS - STERLING COMMERCE CENTER

Following is a summary of the subject's discounted cash flow analysis. Because the commercial space is only
54.1% occupied and is not projected to reach a stabilized level of occupancy until the third year, only a
discounted cash flow analysis was performed. A direct capitalization analysis is not considered applicable.

MARKET RENT ANALYSIS

In order to determine a market rental rate for the subject, a review of current office and retail leases was
performed. A summary of actual leases signed over the last 12 months is shown on the following table.
AMERICAN APPRAISAL ASSOCIATES, INC. INCOME CAPITALIZATION APPROACH PAGE
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STERLING APARTMENT HOMES, PHILADELPHIA, PENNSYLVANIA

                          SUMMARY OF ACTUAL RECENT OFFICE LEASES

                                                      LEASE     LEASE     RENTAL      COMPOUNDED
                            SUITE            SIZE     START     TERM      RATE/SF    ANNUAL RENT
       TENANT                NO.             (SF)      DATE   (MONTHS)      ($)      GROWTH RATE        E
---------------------------------------------------------------------------------------------------------
Dr. Parrish                  465             1,418     7-02      12        15.75          -            Fu
Eagles for Leukaemia         452             1,340    10-02      36        16.00        3.1%           $8
Michael Kleeman              350             2,904     1-03      24        15.50        6.5%           $8
United Equity                301             1,800     3-03      12        15.00          -            $8
Windows Corp.                303             2,002     4-03      84         8.55        2.5%          Ful
Contemporary Staffing        307             2,424     4-03      48        11.14        2.4%           $8
Equitrac                     340             2,943     5-03      12        17.88          -
McCann & Gerschke            309             6,093     6-03      36        14.00        3.5%
Wainstein et al              400             3,190     6-03      36        15.50        3.2%
Averages                       -             2,679        -      33        14.37        2.4%
All office tenants             -             2,386        -       -        15.16          -




* Tenant's specific expense pass through amount

As shown above, recent office leases range from $8.55 to $17.88 per square foot with an average of $14.37 per
square foot. The average rental rate for all of the office tenants is $15.16 per square foot. Also, this average
amount is the weighted amount for the entire tenants and takes into account the sizes of the various spaces and is
not the simple average of each tenant's rental rate.

Concerning the retail tenants, there have only been two recent leases signed within the last 12 months. They are
Suite 1823 - City Nails, a 1,097 square foot space with a beginning lease rate of $18.00 per square foot. The
lease term is 84 months (7 years) and there are annual rent increases of $1.00 per square foot. The compounded
annual rental growth rate is 4.9%. The expenses are full service with the tenant paying no expense pass through
amounts. This lease was signed in April 2003. The second lease was Suite 1833 - Southland, a 3,420 square
foot space with a rental rate of $15.30 per square foot. The lease term is 42 months (3.5 years) and the rental
rate is fixed throughout the term. This is also a full service lease with the tenant paying no expense pass through
amount. There was no improvement allowance given by the landlord and both spaces were taken in an "as-is"
condition. The average rental rate from the existing 10 retail tenants is $23.14 per square foot.
AMERICAN APPRAISAL ASSOCIATES, INC. INCOME CAPITALIZATION APPROACH PAGE
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STERLING APARTMENT HOMES, PHILADELPHIA, PENNSYLVANIA

CONCLUDED MARKET RENTAL RATES AND TERMS

Based on this analysis above as well as interviews with the subject's property management, rental rates and terms
are shown as follows:

OFFICE TENANTS

            Large tenants (Suite 200):              $14.00 per square foot market rent

            All other tenants:                      $16.00 per square foot market rent

            Rent Abatement:                         Currently 4 months of free rent for all
                                                    leases signed in the 1st year, changing to 3
                                                    months for all leases signed in the 2nd
                                                    year, and 2 months for all leases signed in
                                                    the 3rd through 11th year

            Average lease term:                     60 months (5 years)

            Rent increases:                         None, flat

            Expenses:                               Gross lease with no expense recovery

            Tenant improvement allowance:           $15.00 / SF for new tenants, $0 for renewals

            Leasing commissions:                    Sliding scale based on 6% of the 1st year's
                                                    rent, 5% of the 2nd year's rent, 4% of the
                                                    3rd year's rent, 3.5% of the 4th year's
                                                    rent, 3% of the 5th year's rent, and 2.5%
                                                    of any remaining year's rent if needed; no
                                                    commission upon renewal.

          RETAIL TENANTS

            Market rent:                            $20.00 per square foot

            Average lease term:                     84 months (7 years)

            Rent Abatement:                         Currently 4 months of free rent for all
                                                    leases signed in the 1st year, changing to 3
                                                    months for all leases signed in the 2nd
                                                    year, and 2 months for all leases signed in
                                                    the 3rd through 11th year

            Rent increases:                         None, flat rate

            Expenses:                               Gross lease with no expense recovery

            Tenant improvement allowance:           None

            Leasing commissions:                    Sliding scale based on 6% of the 1st year's
                                                    rent, 5% of the 2nd year's rent, 4% of the
                                                    3rd year's rent, 3.5% of the 4th year's
                                                    rent, 3% of the 5th year's rent, and 2.5%
                                                    of any remaining year's rent if needed; no
                                                    commission upon renewal.
         AMERICAN APPRAISAL ASSOCIATES, INC.             INCOME CAPITALIZATION APPROACH PAGE 42




STERLING APARTMENT HOMES, PHILADELPHIA, PENNSYLVANIA

PRO FORMA ANALYSIS

For purposes of this appraisal, we were provided with income and expense data for the subject property. A
summary of this data is presented on the following page.
AMERICAN APPRAISAL ASSOCIATES, INC. INCOME CAPITALIZATION APPROACH PAGE
43
STERLING APARTMENT HOMES, PHILADELPHIA, PENNSYLVANIA

                   OPERATING EXPENSES - HISTORICAL & PROJECTED
                          STERLING COMMERCE CENTER

                                   2000 ACTUAL              2001 ACTUAL                2002 ACTUAL
-------------------------------------------------------------------------------------------------------
Base Rental Revenue         $ 1,678,969   $ 15.26    $ 1,743,488   $   15.85    $ 1,913,014   $   17.39
Reimbursement Income                  0       0.00             0        0.00              0        0.00
Misc Income                     109,058       0.99       138,950        1.26         31,481        0.29
                            ----------------------   -----------------------    -----------------------
GROSS POTENTIAL INCOME      $ 1,788,027   $ 16.26    $ 1,882,438   $   17.11    $ 1,944,495   $   17.68

Less General Vacancy      -$    87,268 ($    0.79) -$   154,562 ($     1.41)    -$  794,364 ($     7.22)
Less Credit Loss              -120,614      (1.10)       -3,738       (0.03)         -7,609       (0.07)
                           ----------------------   -----------------------     -----------------------
EFFECTIVE GROSS INCOME     $ 1,580,145   $ 14.37    $ 1,724,138   $   15.68     $ 1,142,522   $   10.39

Real Estate Taxes          $    76,409   $   0.69    $   111,160   $    1.01    $   111,046   $    1.01
Insurance                        8,584       0.08         21,066        0.19         21,580        0.20
Utilities                      306,167       2.78        388,437        3.53        355,503        3.23
Repairs & Maintenance           16,598       0.15         16,408        0.15         13,894        0.13
Cleaning                       285,066       2.59        275,389        2.50        355,367        3.23
Marketing/Leasing                6,943       0.06          7,668        0.07          6,654        0.06
Gen. & Admin.                   22,789       0.21         28,207        0.26         26,118        0.24
Management Fee                  88,812       0.81        101,147        0.92         59,868        0.54
Miscellaneous                   50,406       0.46         84,597        0.77         82,090        0.75
                           ----------------------    -----------------------    -----------------------
TOTAL EXPENSES             $   861,774   $   7.83    $ 1,034,079   $    9.40    $ 1,032,120   $    9.38

NET OPERATING INCOME       $   718,371       6.53    $   690,059       6.27     $    110,402       1.00

Leasing & Capital Costs
 Tenant Improvements       $         0       0.00    $         0        0.00    $         0        0.00
 Leasing Commissions                 0       0.00              0        0.00              0        0.00
 Structural Reserve                  0       0.00              0        0.00              0        0.00
                           ----------------------    -----------------------    -----------------------

NET CASH FLOW              $   718,371   $   14.37   $   690,059   $   15.68    $    110,402   $   10.39

                                                                AAA
                                   2003 BUDGET          2003/2004 PROJECTED
-----------------------------------------------------------------------------
Base Rental Revenue         $ 1,727,952   $   15.71   $ 1,124,357   $   10.22
Reimbursement Income                  0        0.00        94,945        0.86
Misc Income                     -34,260       (0.31)        5,000        0.05
                            -----------------------   -----------------------
GROSS POTENTIAL INCOME      $ 1,693,692   $   15.40   $ 1,224,302   $   11.13

Less General Vacancy      -$   555,000 ($     5.05) -$   112,436 ($     1.02)
Less Credit Loss                     0        0.00       -24,115       (0.22)
                           -----------------------   -----------------------
EFFECTIVE GROSS INCOME     $ 1,138,692   $   10.35   $ 1,087,751   $    9.89

Real Estate Taxes          $   111,048   $    1.01   $   111,000   $    1.01
Insurance                       21,648        0.20        22,000        0.20
Utilities                      320,600        2.91       281,143        2.56
Repairs & Maintenance           37,150        0.34        15,328        0.14
Cleaning                       354,060        3.22       315,572        2.87
Marketing/Leasing                6,600        0.06         6,600        0.06
Gen. & Admin.                   21,800        0.20        22,000        0.20
Management Fee                  64,135        0.58        60,000        0.55
Miscellaneous                   66,580        0.61        75,000        0.68
                           -----------------------   -----------------------
TOTAL EXPENSES             $ 1,003,621   $    9.12   $   908,643   $    8.26

NET OPERATING INCOME       $   135,071        1.23   $   179,108        1.63

Leasing & Capital Costs
 Tenant Improvements             $         0        0.00         $    51,121        0.46
 Leasing Commissions                       0        0.00               5,770        0.05
 Structural Reserve                        0        0.00              21,998        0.20
                                 -----------------------         -----------------------

NET CASH FLOW                    $    135,071     $    10.35     $   100,219     $    10.61




Net Rentable Area (SF): 109,992

REVENUES AND EXPENSES

The subject's revenue and expense projections are displayed on the previous chart. Rental income is based on
both actual lease rates and terms and market rates previously discussed. Miscellaneous income consists of late
rent fees, vending machine revenue, etc.

We forecasted the property's annual operating expenses after reviewing its historical performance at the subject
property. We analyzed each item of expense and attempted to forecast amounts a typical informed investor
would consider reasonable.

VACANCY AND COLLECTION LOSS

An investor is primarily interested in the annual revenue an income property is likely to produce over a specified
period of time, rather than the income it could produce if it were
AMERICAN APPRAISAL ASSOCIATES, INC. INCOME CAPITALIZATION APPROACH PAGE
44
STERLING APARTMENT HOMES, PHILADELPHIA, PENNSYLVANIA

always 100% occupied and all tenants were paying their rent in full and on time. An investor normally expects
some income loss as tenants vacate, fail to pay rent, or pay their rent late.

We have projected a stabilized vacancy rate of 10% plus a collection loss rate of 2% for a total of 12%, based
on the subject's historical performance, as well as the anticipated future market conditions.

RESERVES FOR REPLACEMENT

"Reserves for replacements" is a contingency account allocated to the expenses of the property to provide for
replacement of short-lived items and for unforeseen necessary capital expenditures. We have utilized the Korpacz
Real Estate Investor Survey of the national CBD office market, which reports a range of replacement reserves of
from $0.10 to $0.50 per square foot. For purposes of this analysis, we have included an allowance of $0.20 per
square foot for reserves for replacement.

CAPITAL EXPENDITURES

Capital expenditures represent expenses for immediate repair or replacement of items that have average to long
lives. Based on our inspection of the property as well as discussions with property management personnel, there
are no major items remaining in need of repair or replacement that would require an expense beyond our reserves
for replacement. Therefore an allowance of $0.20 per square foot should be satisfactory in our reserves for
replacement to cover future capital expenditures.

DISCOUNTED CASH FLOW ANALYSIS

As the subject is a multi-tenant income property, the Discounted Cash Flow Method is considered appropriate.
This method is especially meaningful in that it isolates the timing of the annual cash flows and discounts them,
along with the expected equity reversion, to a present value. The present value of the cash flow is added to the
present value of the reversion, resulting in a total property value.

VACANT SPACE ABSORPTION ANALYSIS

The subject's office space is 44.4% occupied and has 47,802 square feet of vacant space. The property has
signed 21,356 square feet of new or renewing leases in the first six months of 2003. Based on this data, the
subject's vacant office space was leased up over a two-year period. The subject's retail portion is 88.8%
occupied and has only one vacant space
AMERICAN APPRAISAL ASSOCIATES, INC. INCOME CAPITALIZATION APPROACH PAGE
45
STERLING APARTMENT HOMES, PHILADELPHIA, PENNSYLVANIA

available. This space was leased up in January 2004 or the ninth month of the first year of operations.

TENANT RENEWAL PROBABILITY

Because the majority of the subject's tenants are small size companies, with most leasing between 2,000 to 4,000
square feet per suite, a 50% renewal probability was applied.

INFLATION RATES

Market rent was held flat for the first two years and then grown at a rate of 3% per year thereafter. Operating
expenses were inflated at a rate of 3% per year throughout the holding period.

HOLDING PERIOD

The survey of investors indicates that most investors are completing either 10-year cash flows or extending the
analysis to the end of the lease if it is more than 10-years. A 10-year period has been used in the analysis of the
subject with the eleventh year stabilized NOI used to determine the reversion.

INVESTMENT CRITERIA

Appropriate investment criteria will be derived for the subject based upon analysis of comparable sales and a
survey of real estate investors. The following table summarizes the findings of the Korpacz National Investor
Survey for the most recent period.

                          KORPACZ NATIONAL INVESTOR SURVEY
                    NATIONAL CBD OFFICE MARKET - DISCOUNT RATE (IRR)

                                                        RANGE             AVERAGE
                        ---------------------------------------------------------
                        1st Quarter 2003            9.00% to 12.50%        10.92%




Because of the subject's age and small size of commercial space, the discount rate should be above the average
for the market. Based on this analysis, the subject's discount rate is estimated to be 11.50%.

TERMINAL CAPITALIZATION RATE

A terminal capitalization rate of 9.0% is concluded for the subject and applied to the
AMERICAN APPRAISAL ASSOCIATES, INC. INCOME CAPITALIZATION APPROACH PAGE
46
STERLING APARTMENT HOMES, PHILADELPHIA, PENNSYLVANIA

subject's 11th year cash flow projection.

SELLING COSTS

Sales of similar size properties are typically accomplished with the aid of a broker and will also incur legal and
other transaction related cost. Based on our survey of brokers and a review of institutional investor projections,
an allowance of 2.00% of the sale amount is applied.

DISCOUNTED CASH FLOW CONCLUSION

Discounting the annual cash flows and the equity reversion at the selected rate of 11.50% indicates a value of
$3,200,000. Overall, the blend seems reasonable. The cash flow and pricing matrix are located on the following
pages.
AMERICAN APPRAISAL ASSOCIATES, INC. INCOME CAPITALIZATION APPROACH PAGE
47
STERLING APARTMENT HOMES, PHILADELPHIA, PENNSYLVANIA

AIMCO
STERLING COMMERCE CENTER
PRESENT VALUE TABLE
AS OF MAY 1, 2003

                                              Discount               PV of
           Yr         FYE      Cash Flow   Factor @ 11.50%         Cash Flow
           -----------------------------------------------------------------
            1         2004     $100,219       0.89686             $   89,883
            2         2005     $193,756       0.80436             $ 155,850
            3         2006     $417,818       0.72140             $ 301,413
            4         2007     $272,500       0.64699             $ 176,306
            5         2008     $431,070       0.58026             $ 250,134
            6         2009     $350,126       0.52042             $ 182,211
            7         2010     $210,480       0.46674             $   98,240
            8         2011     $180,088       0.41860             $   75,385
            9         2012    ($ 24,917)      0.37543            -$    9,355
           10         2013     $356,903       0.33671             $ 120,172

           Present Value of Cash Flow                            $1,440,239

           Year 11 Net Income                                    $ 491,671
           Residual Value Capped @ 9%                            $5,463,011
           Cost of Sales @ 2%                                   ($ 109,260)
                                                                 ----------
           Net Proceeds                                          $5,353,751

           Present Value of Residual                             $1,802,642
           Total Present Value of Cash Flows                     $1,440,239
                                                                 ----------
           Indicated Value                                       $3,242,881

           Rounded                                               $3,200,000
AMERICAN APPRAISAL ASSOCIATES, INC. RECONCILIATION AND CONCLUSION PAGE
48
STERLING APARTMENT HOMES, PHILADELPHIA, PENNSYLVANIA

                                 RECONCILIATION AND CONCLUSION

This appraisal was made to express an opinion as of the Market Value of the fee simple estate in the property.

AS IS MARKET VALUE OF THE FEE SIMPLE ESTATE

              Sterling Apartment Homes:
                      Cost Approach                                                    Not Utilized
                      Sales Comparison Approach                                        $ 66,000,000
                      Income Approach                                                  $ 64,500,000
                      Reconciled Value                                                 $ 65,500,000

              Sterling Commerce Center:
                      Cost Approach                                                    Not Utilized
                      Sales Comparison Approach                                        Not Utilized
                      Income Approach                                                  $ 3,200,000
                      Reconciled Value                                                 $ 3,200,000

              Combined Value:                                                          $ 68,700,000




The Income Capitalization Method is considered a reliable indicator of value. Income and expenses were
estimated and projected based on historical operating statements and market oriented expenses. This method is
primarily used by investors in their underwriting analysis. Furthermore, there was good support for an overall rate
in the Direct Capitalization Method.

The Sales Comparison Approach to value supported the value conclusion by the Income Approach and was
given secondary consideration. Investment-grade, income-producing properties such as the subject are not
typically traded based on cost. Therefore, the Cost Approach has not been considered in our valuation.

FINAL VALUE - FEE SIMPLE ESTATE

Based on the investigation and premise outlined, it is our opinion that as of May 13, 2003 the market value of the
fee simple estate in the property is:

$68,700,000
AMERICAN APPRAISAL ASSOCIATES, INC. ADDENDA
STERLING APARTMENT HOMES, PHILADELPHIA, PENNSYLVANIA

                              ADDENDA
AMERICAN APPRAISAL ASSOCIATES, INC. EXHIBIT A
STERLING APARTMENT HOMES, PHILADELPHIA, PENNSYLVANIA

                              EXHIBIT A
                        SUBJECT PHOTOGRAPHS
      AMERICAN APPRAISAL ASSOCIATES, INC.                                     EXHIBIT A
      STERLING APARTMENT HOMES, PHILADELPHIA, PENNSYLVANIA

                                      SUBJECT PHOTOGRAPHS

                  [PICTURE]                                  [PICTURE]

         EXTERIOR - FRONT OF BUILDING              EXTERIOR - REAR OF BUILDING

                  [PICTURE]                                  [PICTURE]

         J.F.K. BOULEVARD WESTBOUND                  INTERIOR - LOBBY LEVEL

                  [PICTURE]                                  [PICTURE]




INTERIOR - TYPICAL RESIDENTIAL CORRIDOR INTERIOR - TYPICAL KITCHEN
AMERICAN APPRAISAL ASSOCIATES, INC.                                   EXHIBIT A
STERLING APARTMENT HOMES, PHILADELPHIA, PENNSYLVANIA

                                SUBJECT PHOTOGRAPHS

            [PICTURE]                                 [PICTURE]

      INTERIOR - TYPICAL BATH             INTERIOR - TYPICAL LIVING ROOM

            [PICTURE]                                 [PICTURE]




   ROOFTOP POOL INTERIOR - 2ND FLOOR OFFICE SPACE (VACANT)
AMERICAN APPRAISAL ASSOCIATES, INC. EXHIBIT B
STERLING APARTMENT HOMES, PHILADELPHIA, PENNSYLVANIA

                             EXHIBIT B
                    SUMMARY OF RENT COMPARABLES
                   AND PHOTOGRAPH OF COMPARABLES
AMERICAN APPRAISAL ASSOCIATES, INC. EXHIBIT B
STERLING APARTMENT HOMES, PHILADELPHIA, PENNSYLVANIA

               PHOTOGRAPHS OF COMPARABLE RENT PROPERTIES

           COMPARABLE I-1            COMPARABLE I-2            COMPARABLE I-3
        PRESIDENTIAL CITY APTS       CEDARBROOK HILL          BERKSHIRE TOWERS
         3900 City Line Avenue      8460 Limekiln Pike      11215 Oak Leaf Drive
      Philadelphia, Pennsylvania   Wyncote, Pennsylvania   Silver Spring, Maryland

            [PICTURE]                    N/A                    [PICTURE]

               N/A                       N/A
AMERICAN APPRAISAL ASSOCIATES, INC. EXHIBIT B
STERLING APARTMENT HOMES, PHILADELPHIA, PENNSYLVANIA

SUMMARY OF COMPARABLE RENTAL PROPERTIES

                                                                                                               C
         DESCRIPTION                                SUBJECT
-------------------------------   ----------------------------------------------     -----------------------
 Property Name                    Sterling Apartment Homes                           The Lofts at 1835 Arch
 Management Company               Aimco                                              Forest City Residential
LOCATION:
 Address                          1815 John F. Kennedy Boulevard                      1835 Arch Street
 City, State                      Philadelphia, Pennsylvania                          Philadelphia, PA
 County                           Philadelphia                                        Philadelphia
 Proximity to Subject                                                                 1 Block to the North
PHYSICAL CHARACTERISTICS:
 Net Rentable Area (SF)           486,553                                             197,170
 Year Built                       1960                                                2001
 Effective Age                    7                                                   2
 Building Structure Type          Brick/Granite Hi-Rise Building                      Brick Hi-Rise Building
 Parking Type (Gr., Cov., etc.)   Limited Garage Space                                Limited Spaces
 Number of Units                  536                                                 192
 Unit Mix:                          Type               Unit   Qty.    Mo. Rent              Type
                                  1 EA10                412    32      $ 896          4 1Br/1Ba
                                  2 EB10                495   137      $ 941          5 1Br/1Ba w/Den
                                  3 1A10                550    48      $1,184         6 2Br/2Ba
                                  4 1B10                803   102      $1,302             Penthouse Units
                                  5 1C10                920    21      $1,509
                                  6 2A20              1,315   124      $1,772
                                  7 2B20              1,425    32      $2,189
                                  8 2C20              1,794      5     $2,569
                                  9 3A20              1,631    24      $2,251
                                  10 3B20             1,778      8     $2,509
                                  11 3C20             2,215      2     $2,794
                                  12 4A30             2,500      1     $2,459
 Average Unit Size (SF)           908                                                 1,022
 Unit Breakdown:                      Efficiency  32%       2-Bedroom    30%            Efficiency            0%
                                      1-Bedroom   32%       3-Bedroom     6%            1-Bedroom            72%
CONDITION:                        Good                                                Very Good
APPEAL:                           Good                                                Good
AMENITIES:
 Unit Amenities                             Attach. Garage         Vaulted Ceiling              Attach. Garage
                                            Balcony            X   W/D Connect.                 Balcony
                                            Fireplace                                           Fireplace
                                        X   Cable TV Ready                                  X   Cable TV Ready
 Project Amenities                      X   Swimming Pool                                       Swimming Pool
                                            Spa/Jacuzzi            Car Wash                     Spa/Jacuzzi
                                            Basketball Court       BBQ Equipment                Basketball Cou
                                            Volleyball Court       Theater Room                 Volleyball Cou
                                            Sand Volley Ball       Meeting Hall                 Sand Volley Ba
                                            Tennis Court           Secured Parking              Tennis Court
                                            Racquet Ball           Laundry Room                 Racquet Ball
                                            Jogging Track      X   Business Office              Jogging Track
                                        X   Gym Room           X   Security                 X   Gym Room
OCCUPANCY:                        91%                                                 98%
LEASING DATA:
 Available Leasing Terms          6 to 15 Months                                      6 to 15 Months
 Concessions                      None                                                None
 Pet Deposit                      $200 - $300                                         $150
 Utilities Paid by Tenant:           X   Electric              X   Natural Gas             X   Electric
                                     X   Water                 X   Trash                   X   Water
 Confirmation                     May 13, 2002, John Ditko                            May 13, 2003, Forest Ci
 Telephone Number                 (215) 563-3401                                      (215) 568-1835
NOTES:                                                                                The building is loft co
COMPARISON TO SUBJECT:                                                                Similar

                                                    COMPARABLE                                                 C
         DESCRIPTION                                  R - 2
-------------------------------   -------------------------------------------------    ---------------------
 Property Name                    Park Towne Place                                     1500 Locust
 Management Company               Aimco                                                Scully Company
LOCATION:
 Address                          2200 Ben Franklin Parkway                             1500 Locust Street
 City, State                      Philadelphia, PA                                      Philadelphia, PA
 County                           Philadelphia                                          Philadelphia
 Proximity to Subject             3/4 Mile to the NE                                    1/4 Mile to the SE
PHYSICAL CHARACTERISTICS:
 Net Rentable Area (SF)           964,040                                                     563,420
 Year Built                       1959                                                        Appr. 1990
 Effective Age                    15                                                          5
 Building Structure Type          Four Brick Mid-Rise Buildings                               Masonry Hi-Rise Build
 Parking Type (Gr., Cov., etc.)   Open, Garage                                                Limited Garage Space
 Number of Units                  980                                                         610
 Unit Mix:                            Type             Unit     Qty.          Mo.                 Type
                                  1    Studio            460    160         $ 819             2 Studio
                                  4    1Br/1Ba           715    165         $1,024            4 1Br/1Ba
                                       2Br/1Ba           995    165         $1,429            5 1Br/1Ba
                                  6    2Br/2Ba         1,043    165         $1,629            6 2Br/2Ba
                                  9    3Br/2Ba         1,223    165         $1,839            7 2Br/2Ba
                                  12 4Br/2Ba           1,465    160         $2,074

 Average Unit Size (SF)           984                                                         924
 Unit Breakdown:                    Efficiency     16%          2-Bedroom       35%             Efficiency        1
                                    1-Bedroom      17%          3-Bedroom       17%             1-Bedroom         4
CONDITION:                        Good                                                        Good
APPEAL:                           Average                                                     Very Good
AMENITIES:
 Unit Amenities                             Attach. Garage              Vaulted Ceiling             Attach. Garage
                                            Balcony                     W/D Connect.                Balcony
                                            Fireplace                                               Fireplace
                                    X       Cable TV Ready                                      X   Cable TV Ready
 Project Amenities                  X       Swimming Pool                                       X   Swimming Pool
                                            Spa/Jacuzzi                 Car Wash                X   Spa/Jacuzzi
                                            Basketball Court            BBQ Equipment               Basketball Cour
                                            Volleyball Court            Theater Room                Volleyball Cour
                                            Sand Volley Ball    X       Meeting Hall                Sand Volley Bal
                                    X       Tennis Court                Secured Parking             Tennis Court
                                            Racquet Ball        X       Laundry Room                Racquet Ball
                                            Jogging Track       X       Business Office             Jogging Track
                                    X       Gym Room            X       Security                X   Gym Room
OCCUPANCY:                        95%                                                         92%
LEASING DATA:
 Available Leasing Terms          6 to 15 Months                                              6 to 15 Months
 Concessions                      None                                                        None
 Pet Deposit                      $200 - $300                                                 $200 - $300
 Utilities Paid by Tenant:          X      Electric          X      Natural Gas                 X    Electric
                                    X      Water             X      Trash                       X    Water
 Confirmation                     May 13, 2003, Leasing Office                                May 13, 2003, Leasing
 Telephone Number                 (215) 568-2200                                              (215) 893-0800
NOTES:                            Additional amenities include a free shuttle to              Amenities include a y
                                  Center City (Downtown).                                     sundeck, concierge an
COMPARISON TO SUBJECT:            Inferior                                                    Superior

                                                     COMPARABLE
         DESCRIPTION                                   R - 4
-------------------------------   ---------------------------------------------------
 Property Name                    Locust on The Park
 Management Company               Dranoff Properties
LOCATION:
 Address                          201 South 25th Street
 City, State                      Philadelphia, PA
 County                           Philadelphia
 Proximity to Subject             1/2 Mile to the SW
PHYSICAL CHARACTERISTICS:
 Net Rentable Area (SF)           143,599
 Year Built                       Appr. 1990
 Effective Age
 Building Structure Type          Renovated Mid-Rise Loft Building
 Parking Type (Gr., Cov., etc.)   Open
 Number of Units                  152
 Unit Mix:                          Type            Unit   Qty.      Mo.
                                  2 Studio           528    21     $1,125
                                  4 1Br/1Ba          809    65     $1,395
                                  6 2Br/2Ba        1,211    66     $1,950

 Average Unit Size (SF)           945
 Unit Breakdown:                       Efficiency         14%       2-Bedroom          43%
                                       1-Bedroom          43%       3-Bedroom
CONDITION:                        Slightly Superior
APPEAL:                           Good
AMENITIES:
 Unit Amenities                                Attach. Garage               Vaulted Ceiling
                                               Balcony              X       W/D Connect.
                                               Fireplace
                                        X      Cable TV Ready
 Project Amenities                             Swimming Pool
                                               Spa/Jacuzzi                  Car Wash
                                        Basketball Court         BBQ Equipment
                                        Volleyball Court         Theater Room
                                        Sand Volley Ball    X    Meeting Hall
                                        Tennis Court             Secured Parking
                                        Racquet Ball             Laundry Room
                                        Jogging Track       X    Business Office
                                   X    Gym Room            X    Security
OCCUPANCY:                   95%
LEASING DATA:
 Available Leasing Terms     6 to 15 Months
 Concessions                 None
 Pet Deposit                 $300
 Utilities Paid by Tenant:        X     Electric            X     Natural Gas
                                  X     Water               X     Trash
 Confirmation                May 13, 2003, Leasing Office
 Telephone Number            (215) 735-1810
NOTES:                       Amenities include concierge, storage, internet
                             services and drycleaning deliveries.
                             The building is a loft conversion
COMPARISON TO SUBJECT:       Similar
AMERICAN APPRAISAL ASSOCIATES, INC. EXHIBIT B
STERLING APARTMENT HOMES, PHILADELPHIA, PENNSYLVANIA

               PHOTOGRAPHS OF COMPARABLE RENT PROPERTIES

         COMPARABLE R-1            COMPARABLE R-2             COMPARABLE R-3

      THE LOFTS AT 1835 ARCH       PARK TOWNE PLACE            1500 LOCUST
         1835 Arch Street      2200 Ben Franklin Parkway   1500 Locust Street
         Philadelphia, PA          Philadelphia, PA         Philadelphia, PA

           [PICTURE]                 [PICTURE]                [PICTURE]

         COMPARABLE R-4

        LOCUST ON THE PARK
      201 South 25th Street
        Philadelphia, PA

          [PICTURE]
AMERICAN APPRAISAL ASSOCIATES, INC. EXHIBIT C
STERLING APARTMENT HOMES, PHILADELPHIA, PENNSYLVANIA

                              EXHIBIT C
                 ASSUMPTIONS AND LIMITING CONDITIONS

                               (3 PAGES)
AMERICAN APPRAISAL ASSOCIATES, INC. EXHIBIT C
STERLING APARTMENT HOMES, PHILADELPHIA, PENNSYLVANIA

No responsibility is assumed for matters legal in nature. No investigation has been made of the title to or any
liabilities against the property appraised. In this appraisal, it is presumed that, unless otherwise noted, the owner's
claim is valid, the property rights are good and marketable, and there are no encumbrances which cannot be
cleared through normal processes.

To the best of our knowledge, all data set forth in this report are true and accurate. Although gathered from
reliable sources, no guarantee is made nor liability assumed for the accuracy of any data, opinions, or estimates
identified as being furnished by others which have been used in formulating this analysis.

Land areas and descriptions used in this appraisal were obtained from public records and have not been verified
by legal counsel or a licensed surveyor.

No soil analysis or geological studies were ordered or made in conjunction with this report, nor were any water,
oil, gas, or other subsurface mineral and use rights or conditions investigated.

Substances such as asbestos, urea-formaldehyde foam insulation, other chemicals, toxic wastes, or other
potentially hazardous materials could, if present, adversely affect the value of the property. Unless otherwise
stated in this report, the existence of hazardous substance, which may or may not be present on or in the
property, was not considered by the appraiser in the development of the conclusion of value. The stated value
estimate is predicated on the assumption that there is no material on or in the property that would cause such a
loss in value. No responsibility is assumed for any such conditions, and the client has been advised that the
appraiser is not qualified to detect such substances, quantify the impact on values, or develop the remedial cost.

No environmental impact study has been ordered or made. Full compliance with applicable federal, state, and
local environmental regulations and laws is assumed unless otherwise stated, defined, and considered in the
report. It is also assumed that all required licenses, consents, or other legislative or administrative authority from
any local, state, or national government or private entity organization either have been or can be obtained or
renewed for any use which the report covers.
AMERICAN APPRAISAL ASSOCIATES, INC. EXHIBIT C
STERLING APARTMENT HOMES, PHILADELPHIA, PENNSYLVANIA

It is assumed that all applicable zoning and use regulations and restrictions have been complied with unless a
nonconformity has been stated, defined, and considered in the appraisal report. Further, it is assumed that the
utilization of the land and improvements is within the boundaries of the property described and that no
encroachment or trespass exists unless noted in the report.

The Americans with Disabilities Act ("ADA") became effective January 26, 1992. We have not made a specific
compliance survey and analysis of this property to determine whether or not it is in conformity with the various
detailed requirements of the ADA. It is possible that a compliance survey of the property together with a detailed
analysis of the requirements of the ADA could reveal that the property is not in compliance with one or more of
the requirements of the act. If so, this fact could have a negative effect on the value of the property. Since we
have no direct evidence relating to this issue, we did not consider the possible noncompliance with the
requirements of ADA in estimating the value of the property.

We have made a physical inspection of the property and noted visible physical defects, if any, in our report. This
inspection was made by individuals generally familiar with real estate and building construction. However, these
individuals are not architectural or structural engineers who would have detailed knowledge of building design and
structural integrity. Accordingly, we do not opine on, nor are we responsible for, the structural integrity of the
property including its conformity to specific governmental code requirements, such as fire, building and safety,
earthquake, and occupancy, or any physical defects which were not readily apparent to the appraiser during the
inspection.

The value or values presented in this report are based upon the premises outlined herein and are valid only for the
purpose or purposes stated.

The date of value to which the conclusions and opinions expressed apply is set forth in this report. The value
opinion herein rendered is based on the status of the national business economy and the purchasing power of the
U.S. dollar as of that date.

Testimony or attendance in court or at any other hearing is not required by reason of this appraisal unless
arrangements are previously made within a reasonable time in advance for
AMERICAN APPRAISAL ASSOCIATES, INC. EXHIBIT C
STERLING APARTMENT HOMES, PHILADELPHIA, PENNSYLVANIA

such testimony, and then such testimony shall be at American Appraisal Associates, Inc.'s, prevailing per diem for
the individuals involved.

Possession of this report or any copy thereof does not carry with it the right of publication. No portion of this
report (especially any conclusion to use, the identity of the appraiser or the firm with which the appraiser is
connected, or any reference to the Appraisal Institute or the designations awarded by this organization) shall be
disseminated to the public through prospectus, advertising, public relations, news, or any other means of
communication without the written consent and approval of American Appraisal Associates, Inc.
AMERICAN APPRAISAL ASSOCIATES, INC. EXHIBIT D
STERLING APARTMENT HOMES, PHILADELPHIA, PENNSYLVANIA

                              EXHIBIT D
                      CERTIFICATES OF APPRAISERS

                               (1 PAGE)
AMERICAN APPRAISAL ASSOCIATES, INC. EXHIBIT D

                                        CERTIFICATE OF APPRAISER

I certify that, to the best of my knowledge and belief:

The statements of fact contained in this report are true and correct.

The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting
conditions, and represent the unbiased professional analyses, opinions, and conclusions of American Appraisal
Associates, Inc.

American Appraisal Associates, Inc. and I personally, have no present or prospective interest in the property that
is the subject of this report and have no personal interest or bias with respect to the parties involved.

Compensation for American Appraisal Associates, Inc. is not contingent on an action or event resulting from the
analyses, opinions, or conclusions in, or the use of, this report.

The analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with
the requirements of the Uniform Standards of Professional Appraisal Practice and the Code of Professional
Ethics and the Standards of Professional Practice of the Appraisal Institute.

The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly
authorized representatives.

I personally did not inspect the subject property. Richard Mupo provided significant real property appraisal
assistance in the preparation of this report.

I am currently in compliance with the Appraisal Institute's continuing education requirements.

                                                -s- Frank Fehribach

Frank Fehribach, MAI Managing Principal, Real Estate Group State of Pennsylvania Certified General Appraiser
#GA003334
AMERICAN APPRAISAL ASSOCIATES, INC. EXHIBIT E
STERLING APARTMENT HOMES, PHILADELPHIA, PENNSYLVANIA

                              EXHIBIT E
                     QUALIFICATIONS OF APPRAISERS

                               (2 PAGES)
AMERICAN APPRAISAL ASSOCIATES, INC.                                  EXHIBIT E
STERLING APARTMENT HOMES, PHILADELPHIA, PENNSYLVANIA

                                  FRANK A. FEHRIBACH, MAI
                            MANAGING PRINCIPAL, REAL ESTATE GROUP

POSITION         Frank A. Fehribach is a Managing Principal for the Dallas Real
                 Estate Group of American Appraisal Associates, Inc. ("AAA").

EXPERIENCE

Valuation        Mr. Fehribach has experience in valuations for resort hotels;
                 Class A office buildings; Class A multifamily complexes;
                 industrial buildings and distribution warehousing; multitract
                 mixed-use vacant land; regional malls; residential subdivision
                 development; and special-purpose properties such as athletic
                 clubs, golf courses, manufacturing facilities, nursing homes,
                 and medical buildings. Consulting assignments include
                 development and feasibility studies, economic model creation
                 and maintenance, and market studies.

                 Mr. Fehribach also has been involved in overseeing appraisal
                 and consulting assignments in Mexico and South America.

Business         Mr. Fehribach joined AAA as an engagement director in 1998.
                 He was promoted to his current position in 1999. Prior to
                 that, he was a manager at Arthur Andersen LLP. Mr. Fehribach
                 has been in the business of real estate appraisal for over ten
                 years.

EDUCATION        University of Texas - Arlington
                  Master of Science - Real Estate
                 University of Dallas
                  Master of Business Administration - Industrial Management
                  Bachelor of Arts - Economics

STATE            State of Arizona
CERTIFICATIONS    Certified General Real Estate Appraiser, #30828
                 State of Arkansas
                  State Certified General Appraiser, #CG1387N
                 State of Colorado
                  Certified General Appraiser, #CG40000445
                 State of Georgia
                  Certified General Real Property Appraiser, #218487
                 State of Michigan
                  Certified General Appraiser, #1201008081
                 State of Texas
                  Real Estate Salesman License, #407158 (Inactive)
                 State of Texas
                  State Certified General Real Estate Appraiser, #TX-1323954-G
AMERICAN APPRAISAL ASSOCIATES, INC. EXHIBIT E
STERLING APARTMENT HOMES, PHILADELPHIA, PENNSYLVANIA

      PROFESSIONAL   Appraisal Institute, MAI Designated Member
      AFFILIATIONS   Candidate Member of the CCIM Institute pursuing Certified
                     Commercial Investment Member (CCIM) designation

      PUBLICATIONS   "An Analysis of the Determinants of Industrial Property
                                    -authored with Dr. Ronald C. Rutherford and Dr.
                     Mark Eakin, The Journal of Real Estate Research, Vol. 8, No.
                     3, Summer 1993, p. 365.
AMERICAN APPRAISAL ASSOCIATES, INC.
STERLING APARTMENT HOMES, PHILADELPHIA, PENNSYLVANIA

                     GENERAL SERVICE CONDITIONS
AMERICAN APPRAISAL ASSOCIATES, INC.
STERLING APARTMENT HOMES, PHILADELPHIA, PENNSYLVANIA

                                    GENERAL SERVICE CONDITIONS

The services(s) provided by AAA will be performed in accordance with professional appraisal standards. Our
compensation is not contingent in any way upon our conclusions of value. We assume, without independent
verification, the accuracy of all data provided to us. We will act as an independent contractor and reserve the
right to use subcontractors. All files, workpapers or documents developed by us during the course of the
engagement will be our property. We will retain this data for at least five years.

Our report is to be used only for the specific purpose stated herein; and any other use is invalid. No reliance may
be made by any third party without our prior written consent. You may show our report in its entirety to those
third parties who need to review the information contained herein. No one should rely on our report as a
substitute for their own due diligence. We understand that our reports will be described in public tender offer
documents distributed to limited partners. We reserve the right to review the public tender offer documents prior
to their issuance to confirm that disclosures of facts from the current appraisals are accurate. No reference to our
name or our report, in whole or in part, in any other SEC filing or private placement memorandum you prepare
and/or distribute to third parties may be made without our prior written consent.

The Tender Offer Partnerships, as that term is defined in the Settlement Agreement, agree to indemnify and hold
us harmless against and from any and all losses, claims, actions, damages, expenses or liabilities, including
reasonable attorneys' fees, to which we may become subject in connection with this engagement except where
such losses, claims, actions, damages, expenses or liabilities, including reasonable attorney's fees, arise or result
from AAA's misconduct, bad faith or negligence. Co-Clients will not be liable for any of our acts or omissions.

AAA is an equal opportunity employer.
              TATES CREEK VILLAGE
           3051 KIRKLEVINGTON DRIVE
              LEXINGTON, KENTUCKY

                MARKET VALUE -
               FEE SIMPLE ESTATE

             AS OF NOVEMBER 19, 2003

                 PREPARED FOR:

APARTMENT INVESTMENT AND MANAGEMENT COMPANY
                   (AIMCO)

C/O LINER YANKELEVITZ SUNSHINE & REGENSTREIF LLP

                       &

      LIEFF CABRASER HEIMANN & BERNSTEIN
           ON BEHALF OF NUANES, ET. AL.

    [AMERICAN APPRAISAL ASSOCIATES (R) LOGO]
UNITED STATES                                                                       INTERNATIONAL

Atlanta           Milwaukee     [AMERICAN APPRAISAL ASSOCIATES(R) LOGO]             Brazil             Mexico
Boston            Minneapolis                                                       Canada             Morocco
Buffalo           New Orleans                                                       China              Peru
Charlotte         New York             9441 LBJ Freeway Suite 114                   Croatia            Philippines
Chicago           Oak Lawn                 Dallas, Texas 75243                      Czech Republic     Poland
Cincinnati        Philadelphia                                                      England            Portugal
Dallas            Pittsburgh            Telephone: (972)994-9100                    Germany            Russia
Denver            Princeton             Fax: (972)994-0516                          Greece             Spain
Detroit           Schaumburg                                                        Hong Kong          Taiwan
Houston           St. Louis                                                         Hungary            Thailand
Irvine            San Francisco                                                     Italy              Turkey
Jacksonville      Seattle                                                           Japan              Venezuela
Los Angeles




                                              FEBRUARY 13, 2004

Apartment Investment and Management
Company ("AIMCO") c/o
Mr. Steven A. Velkei, Esq.
Liner Yankelevitz Sunshine & Regenstreif LLP 1100 Glendon Avenue, 14th Floor
Los Angeles, California 90024-3503

Nuanes, et al.( "Plaintiffs ") c/o
Ms. Joy Kruse
Lieff Cabraser Heimann & Bernstein
Embarcadero Center West
275 Battery Street, 30th Floor
San Francisco, California 94111

RE: TATES CREEK VILLAGE
3051 KIRKLEVINGTON DRIVE
LEXINGTON, LEXINGTON-FAYETTE COUNTY, KENTUCKY

In accordance with your authorization, we have completed the appraisal of the above-referenced property. This
complete appraisal is intended to report our analysis and conclusions in a summary format.

The subject property consists of an apartment project having 204 units with a total of 194,910 square feet of
rentable area. The improvements were built in 1970. The improvements are situated on 12 acres. Overall, the
improvements are in average condition. As of the date of this appraisal, the subject property is 89% occupied.

It is our understanding the appraisal will be used by the clients to assist the San Mateo Superior Court in the
settlement of litigation between the above mentioned clients. The appraisal is intended to conform to the Uniform
Standards of Professional Appraisal Practice ("USPAP") as promulgated by the Appraisal Standards Board of
the Appraisal Foundation and the Code of Professional Ethics and Standards of Professional Practice of the
Appraisal Institute. The appraisal is presented in a summary report, and the Departure Provision of USPAP has
not been invoked in this appraisal. It is entirely inappropriate to use this value conclusion or the report for any
purpose other than the one stated.
AMERICAN APPRAISAL ASSOCIATES, INC. LETTER OF TRANSMITTAL PAGE 2
TATES CREEK VILLAGE, LEXINGTON, KENTUCKY

The opinions expressed in this appraisal cover letter can only be completely understood by reading the narrative
report, addenda, and other data, which is attached. The appraisal is subject to the attached general assumptions
and limiting conditions and general service conditions.

As a result of our investigation, it is our opinion that the fee simple market value of the subject, effective
November 19, 2003 is:

                                                     ($6,500,000)

                                        Respectfully submitted,
                               AMERICAN APPRAISAL ASSOCIATES, INC.

                                                 By: /s/ JEFF W. BRIGGS
           February 13, 2004                     Jeff Briggs, MAI
           #053272                               Engagement Director, Real Estate Group
                                                 Commonwealth of Kentucky State Certified General
                                                   Real Property Appraiser #002611




Report By:
Daniel Salcedo
Commonwealth of Kentucky
Temporary Practice Permit #18794
AMERICAN APPRAISAL ASSOCIATES, INC. TABLE OF CONTENTS PAGE 3
TATES CREEK VILLAGE, LEXINGTON, KENTUCKY

                                        TABLE OF CONTENTS

            Cover
            Letter of Transmittal
            Table of Contents

                                                APPRAISAL DATA

            Executive Summary....................................................           4
            Introduction.........................................................           9
            Area Analysis........................................................          11
            Market Analysis......................................................          14
            Site Analysis........................................................          15
            Improvement Analysis.................................................          15
            Highest and Best Use.................................................          16

                                                   VALUATION

            Valuation Procedure..................................................          17
            Sales Comparison Approach............................................          19
            Income Capitalization Approach.......................................          25
            Reconciliation and Conclusion........................................          37




                                              ADDENDA

Exhibit A - Photographs of Subject Property Exhibit B - Summary of Rent Comparables and Photograph of
Comparables Exhibit C - Assumptions and Limiting Conditions Exhibit D - Certificate of Appraiser
Exhibit E - Qualifications
General Service Conditions
AMERICAN APPRAISAL ASSOCIATES, INC. EXECUTIVE SUMMARY PAGE 4
TATES CREEK VILLAGE, LEXINGTON, KENTUCKY

                                   EXECUTIVE SUMMARY

                           PART ONE - PROPERTY DESCRIPTION

         PROPERTY NAME:                 Tates Creek Village
         LOCATION:                      3051 Kirklevington Drive
                                        Lexington, Kentucky

         INTENDED USE OF ASSIGNMENT:    Court Settlement
         PURPOSE OF APPRAISAL:          "As Is" Market Value of the Fee Simple Estate
         INTEREST APPRAISED:            Fee simple estate

         DATE OF VALUE:                 November 19, 2003
         DATE OF REPORT:                February 13, 2004




PHYSICAL DESCRIPTION - SITE & IMPROVEMENTS:

SITE:

        Size:                    12 acres, or 522,720 square feet
        Assessor Parcel No.:     1262900
        Floodplain:              Community Panel No. 210067-0090 C (September 3, 1992)
                                 Flood Zone X, an area outside the floodplain.
        Zoning:                  R-3 (Planned Neighborhood Residential)




BUILDING:

                   No. of Units:              204 Units
                   Total NRA:                 194,910 Square Feet
                   Average Unit Size:         955 Square Feet
                   Apartment Density:         17.0 units per acre
                   Year Built:                1970

                  UNIT MIX AND MARKET RENT:

                                                 GROSS RENTAL INCOME PROJECTION



         --------------------------------------------------------------------------
                                                Market Rent
                                    Square    --------------- Monthly      Annual
                 Unit Type           Feet     Per Unit Per SF Income       Income
         --------------------------------------------------------------------------
         1Br/1Ba - A                   640      $520    $0.81 $ 16,640 $ 199,680
         1Br/1Ba - B                   720      $540    $0.75 $ 24,300 $ 291,600
         1Br/1Ba - w/ Large Frt Dr     720      $560    $0.78 $ 3,920 $      47,040
         1Br/1Ba - w/o Large Frt       720      $560    $0.78 $     560 $     6,720
         1Br/1Ba - B                   720      $560    $0.78 $ 17,360 $ 208,320
         2Br/1.5 - C                 1,200      $700    $0.58 $ 21,700 $ 260,400
         3Br/1.5Ba-D                 1,250      $720    $0.58 $ 22,320 $ 267,840
         3Br/2.5 Ba -E               1,500      $900    $0.60 $ 5,400 $      64,800
         3Br/2.5 Ba -F               1,550      $950    $0.61 $ 17,100 $ 205,200
         1Br/1Ba - Efficiency          550      $450    $0.82 $     900 $    10,800
                                     -----      ----    ----- -------- ----------
                                                        Total $130,200 $1,562,400
         ==========================================================================
      AMERICAN APPRAISAL ASSOCIATES, INC.                EXECUTIVE SUMMARY PAGE 5
      TATES CREEK VILLAGE, LEXINGTON, KENTUCKY

      OCCUPANCY:                             89%
      ECONOMIC LIFE:                         45 Years
      EFFECTIVE AGE:                         30 Years
      REMAINING ECONOMIC LIFE:               15 Years




SUBJECT PHOTOGRAPHS AND LOCATION MAP:

                                 [SUBJECT PHOTOGRAPHS]

                                   [PICTURE] [PICTURE]

                          EXTERIOR EXTERIOR - LANDSCAPE

                                        AREA MAP

                                          [MAP]
AMERICAN APPRAISAL ASSOCIATES, INC. EXECUTIVE SUMMARY PAGE 6
TATES CREEK VILLAGE, LEXINGTON, KENTUCKY

                               NEIGHBORHOOD MAP

                                      [MAP]

HIGHEST AND BEST USE:

         As Vacant:            Hold for future multi-family development
         As Improved:          Continuation as its current use

        METHOD OF VALUATION:   In this instance, the Sales Comparison and Income
                               Approaches to value were utilized.
AMERICAN APPRAISAL ASSOCIATES, INC. EXECUTIVE SUMMARY PAGE 7
TATES CREEK VILLAGE, LEXINGTON, KENTUCKY

                                PART TWO - ECONOMIC INDICATORS

INCOME CAPITALIZATION APPROACH

                                                 Amount                  $/Unit
                                                 ------                  ------
 DIRECT CAPITALIZATION
 Potential Rental Income                         $1,562,400              $7,659
 Effective Gross Income                          $1,461,240              $7,163
 Operating Expenses                              $726,882                $3,563                  49.7% of EGI
 Net Operating Income:                           $673,158                $3,300

 Capitalization Rate                             10.50%

 DIRECT CAPITALIZATION VALUE                     $6,400,000 *            $31,373 / UNIT

 DISCOUNTED CASH FLOW ANALYSIS:

 Holding Period                                  10 years
 2002 Economic Vacancy                           14%
 Stabilized Vacancy & Collection Loss:           10%
 Lease-up / Stabilization Period                 N/A
 Terminal Capitalization Rate                    11.50%
 Discount Rate                                   12.50%
 Selling Costs                                   2.00%
 Growth Rates:
      Income                                     3.00%
      Expenses:                                  3.00%
 DISCOUNTED CASH FLOW VALUE                      $6,800,000 *            $33,333 / UNIT

 RECONCILED INCOME CAPITALIZATION VALUE          $6,500,000              $31,863 / UNIT

 SALES COMPARISON APPROACH

 PRICE PER UNIT:
      Range of Sales $/Unit (Unadjusted)         $26,180 to $50,702
      Range of Sales $/Unit (Adjusted)           $26,180 to $34,653
 VALUE INDICATION - PRICE PER UNIT               $6,600,000 *            $32,353 / UNIT

 EGIM ANALYSIS
      Range of EGIMs from Improved Sales         4.41 to 8.11
      Selected EGIM for Subject                  4.25
      Subject's Projected EGI                    $ 1,461,240
 EGIM ANALYSIS CONCLUSION                        $6,200,000 *            $30 ,392 / UNIT

 NOI PER UNIT ANALYSIS CONCLUSION                $6,500,000 *            $31,863 / UNIT

 RECONCILED SALES COMPARISON VALUE               $6,500,000 *            $31,863 / UNIT




* Value indications are after adjustments for concessions, deferred maintenance, excess land and lease-up costs,
if any.
AMERICAN APPRAISAL ASSOCIATES, INC. EXECUTIVE SUMMARY PAGE 8
TATES CREEK VILLAGE, LEXINGTON, KENTUCKY

                PART THREE - SUMMARY OF VALUE CONCLUSIONS

          SALES COMPARISON APPROACH:
               Price Per Unit                      $6,600,000
               NOI Per Unit                        $6,500,000
               EGIM Multiplier                     $6,200,000
          INDICATED VALUE BY SALES COMPARISON      $6,500,000   $31,863 / UNIT

          INCOME APPROACH:
               Direct Capitalization Method:       $6,400,000
               Discounted Cash Flow Method:        $6,800,000
          INDICATED VALUE BY THE INCOME APPROACH   $6,500,000   $31,863 / UNIT

          RECONCILED OVERALL VALUE CONCLUSION:     $6,500,000   $31,863 / UNIT
AMERICAN APPRAISAL ASSOCIATES, INC. INTRODUCTION PAGE 9
TATES CREEK VILLAGE, LEXINGTON, KENTUCKY

                                                INTRODUCTION

IDENTIFICATION OF THE SUBJECT

The subject property is located at 3051 Kirklevington Drive, Lexington, Lexington-Fayette County, Kentucky.
Lexington-Fayette County identifies it as tax parcel number 1262900.

SCOPE OF THE ASSIGNMENT

The property, neighborhood, and comparables were inspected by Daniel Salcedo on November 19, 2003. Jeff
Briggs, MAI has not made a personal inspection of the subject property. Daniel Salcedo performed the research,
valuation analysis and wrote the report. Jeff Briggs, MAI reviewed the report and concurs with the value. Both,
Jeff Briggs, MAI and Daniel Salcedo have extensive experience in appraising similar properties and meet the
USPAP competency provision.

The scope of this investigation comprises the inspection of the property and the collection, verification, and
analysis of general and specific data pertinent to the subject property. We have researched current improved
sales and leases of similar properties, analyzing them as to their comparability, and adjusting them accordingly.
We completed the Sales Comparison and Income Capitalization Approaches to value. From these approaches to
value, a concluded overall value was made.

DATE OF VALUE AND REPORT

This appraisal was made to express the opinion of value as of November 19, 2003. The date of the report is
February 13, 2004.

PURPOSE AND USE OF APPRAISAL

The purpose of the appraisal is to estimate the market value of the fee simple interest in the subject property. It is
understood that the appraisal is intended to assist the clients in litigation settlement proceedings. The appraisal
was not based on a requested minimum valuation, a specific valuation, or the approval of a loan.

PROPERTY RIGHTS APPRAISED

We have appraised the Fee Simple Estate in the subject property (as applied in the Sales & Income
Approaches), subject to the existing short-term leases. A Fee Simple Estate is
AMERICAN APPRAISAL ASSOCIATES, INC. INTRODUCTION PAGE 10
TATES CREEK VILLAGE, LEXINGTON, KENTUCKY

defined in The Dictionary of Real Estate Appraisal, 3rd ed. (Chicago: Appraisal Institute, 1993), as:

"Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the
governmental powers of taxation, eminent domain, police power, and escheat."

MARKETING/EXPOSURE PERIOD

MARKETING PERIOD: 6 to 12 months EXPOSURE PERIOD: 6 to 12 months

HISTORY OF THE PROPERTY

Ownership in the subject property is currently vested in CCP 3. To the best of our knowledge, no transfers of
ownership or offers to purchase the subject are known to have occurred during the past three years. The subject
has been listed for sale for approximately six months at a listed price of $7,050,000. However, the potential
buyer wanted a lower price due to maintenance issues and the deal fell through.
AMERICAN APPRAISAL ASSOCIATES, INC. AREA ANALYSIS PAGE 11
TATES CREEK VILLAGE, LEXINGTON, KENTUCKY

                                  AREA / NEIGHBORHOOD ANALYSIS

NEIGHBORHOOD ANALYSIS

A neighborhood is a group of complementary land uses. The function of the neighborhood analysis is to describe
the immediate surrounding environs. The subject is located in the city of Lexington, Kentucky. Overall, the
neighborhood is characterized as a suburban setting with the predominant land use being residential. The subject's
neighborhood is generally defined by the following boundaries.

NEIGHBORHOOD BOUNDARIES

                                         East       -   Alumni Road
                                         West       -   SH-27
                                         South      -   Man of War Blvd
                                         North      -   Loop 4




MAJOR EMPLOYERS

Major employers in the subject's area include University of Kentucky, Toyota Motor Manufacturing, Lexmark
International, Fayette County Public School District, University of Kentucky Hospital, Lexington-Fayette Urban
Government Central Baptist Hospital, Saint Joseph Hospital, and Kentucky Utilities. The overall economic
outlook for the area is considered favorable.

DEMOGRAPHICS

We have reviewed demographic data within the neighborhood. The following table summarizes the key data
points.
AMERICAN APPRAISAL ASSOCIATES, INC. AREA ANALYSIS PAGE 12
TATES CREEK VILLAGE, LEXINGTON, KENTUCKY

                                   NEIGHBORHOOD DEMOGRAPHICS

                                                                AREA
                                              ----------------------------------------
         CATEGORY                             1-Mi. RADIUS 3-Mi. RADIUS 5-Mi. RADIUS                 MSA
         --------                             ------------ ------------ ------------                 ---
         POPULATION TRENDS
         Current Population                          10,881          64,181          151,323      491,951
         5-Year Population                           11,036          65,845          156,585      525,624
         % Change CY-5Y                                 1.4%            2.6%             3.5%         6.8%
         Annual Change CY-5Y                            0.3%            0.5%             0.7%         1.4%

         HOUSEHOLDS
         Current Households                           4,664          25,740           63,128      198,231
         5-Year Projected Households                  4,811          27,312           67,171      217,751
         % Change CY - 5Y                               3.2%            6.1%             6.4%         9.8%
         Annual Change CY-5Y                            0.6%            1.2%             1.3%         2.0%

         INCOME TRENDS
         Median Household Income              $      28,955    $     28,621     $     34,386     $ 37,645
         Per Capita Income                    $      17,919    $     17,383     $     22,221     $ 22,105
         Average Household Income             $      41,425    $     42,749     $     53,396     $ 54,857




Source: Demographics Now

The subject neighborhood's population is expected to show increases below that of the region. The immediate
market offers inferior income levels as compared to the broader market.

The following table illustrates the housing statistics in the subject's immediate area, as well as the MSA region.

                                              HOUSING TRENDS

                                                                   AREA
                                                  ----------------------------------------
           CATEGORY                               1-Mi. RADIUS 3-Mi. RADIUS 5-Mi. RADIUS            MSA
           --------                               ------------ ------------ ------------            ---
           HOUSING TRENDS
           % of Households Renting                  53.55%          47.95%           41.26%        37.32%
           5-Year Projected % Renting               53.59%          48.16%           41.13%        37.02%

           % of Households Owning                   38.10%          44.60%           50.62%        56.12%
           5-Year Projected % Owning                38.45%          44.87%           51.27%        56.94%




Source: Demographics Now
          AMERICAN APPRAISAL ASSOCIATES, INC.                                  AREA ANALYSIS PAGE 13
          TATES CREEK VILLAGE, LEXINGTON, KENTUCKY

          SURROUNDING IMPROVEMENTS

          The following uses surround the subject property:

          North   - Loop 4

          South   - Apartments

          East    - Apartments

          West    - Apartments




CONCLUSIONS

The subject is well located within the city of Lexington. The neighborhood is characterized as being mostly
suburban in nature and is currently in the stable stage of development. The economic outlook for the
neighborhood is judged to be favorable with a good economic base.
AMERICAN APPRAISAL ASSOCIATES, INC. MARKET ANALYSIS PAGE 14
TATES CREEK VILLAGE, LEXINGTON, KENTUCKY

                                             MARKET ANALYSIS

The subject property is located in the city of Lexington in Lexington-Fayette County. The overall pace of
development in the subject's market is more or less stable. Any new development is minimal with most expected
growth towards the south of the subject. The following table illustrates historical vacancy rates for the subject's
market.

                                       HISTORICAL VACANCY RATE

                             Period                       Region               Submarket
                             ------                       ------               ---------
                              2002                         8.2%                  8.5%
                              2003                         9.9%                  8.4%




CB Richard Ellis

Occupancy trends in the subject's market are a stable. Historically speaking, the subject's submarket has equated
the overall market. Historically stabilized occupancy is around 91.0% to 92.0% with current occupancy at
90.1%. Employment is expected to slowly recover in the coming year thus triggering a slight increase in
occupancy.

Market rents in the subject's market have been following stable trend. The following table illustrates historical
rental rates for the subject's market.

                                       HISTORICAL AVERAGE RENT

              Period               Region            % Change            Submarket           % Change
              ------               ------            --------            ---------           --------
               2002                 $715                 -                 $518                  -
               2003                 $723               1.1%                $521                0.6%




Reis, Inc.

The following table illustrates a summary of the subject's competitive set.

                                        COMPETITIVE PROPERTIES

   No.           Property Name              Units   Ocpy.    Year Built           Proximity to subject
   ---           -------------              -----   -----    ----------           --------------------
   R-1        Breckinridge Court             382     91%        1987          1-mile south of the subject
   R-2        Chinoe Creek                   356     93%        1983          2-miles northeast of subject
   R-3        Sonnet Cove Apartments         332     90%        1972          3 miles northeast of the subject
   R-4        Patchen Place                  202     93%        1973          3 miles northeast of subject
   R-5        Old Farm Apartments            330     91%        1985          1 mile south of subject
   Subject    Tates Creek Village            204     89%        1970




Market rental rates are expected to remain stable in the next year.
AMERICAN APPRAISAL ASSOCIATES, INC. PROPERTY DESCRIPTION PAGE 15
TATES CREEK VILLAGE, LEXINGTON, KENTUCKY

                                   PROPERTY DESCRIPTION

SITE ANALYSIS

    Site Area                      12 acres, or 522,720 square feet
    Shape                          Irregular
    Topography                     Level
    Utilities                      All necessary utilities are available to the site.
    Soil Conditions                Stable
    Easements Affecting Site       None other than typical utility easements
    Overall Site Appeal            Good
    Flood Zone:
      Community Panel              210067-0090 C, dated September 3, 1992
      Flood Zone                   Zone X
    Zoning                         R-3, the subject improvements represent a legal conforming
                                   use of the site.




REAL ESTATE TAXES

                                     ASSESSED VALUE - 2002
                                  ----------------------------            TAX RATE /    PROPERTY
 PARCEL NUMBER                    LAND      BUILDING     TOTAL            MILL RATE      TAXES
 -------------                    ----      --------     -----            ---------      -----
    1262900                    $1,220,000 $4,880,000 $6,100,000            0.00958      $58,408




IMPROVEMENT ANALYSIS

   Year Built                     1970
   Number of Units                204
   Net Rentable Area              194,910 Square Feet
   Construction:
    Foundation                    Concrete pier and beam
    Frame                         Wood frame
    Exterior Walls                Wood or vinyl siding
    Roof                          Built-up asphalt with or without gravel over a wood truss
                                  structure
   Project Amenities              Amenities at the subject include a swimming pool, sand
                                  volleyball, tennis court, gym room, tanning room, meeting
                                  hall, laundry room, and parking area.
   Unit Amenities                 Individual unit amenities include washer dryer connections.
                                  Appliances available in each unit include a refrigerator,
                                  stove, dishwasher, water heater, garbage disposal, and oven
AMERICAN APPRAISAL ASSOCIATES, INC. PROPERTY DESCRIPTION PAGE 16
TATES CREEK VILLAGE, LEXINGTON, KENTUCKY

Unit Mix:

                                                                                     Unit Area
                              Unit Type                    Number of Units           (Sq. Ft.)
                              ---------                    ---------------           ---------
                       1Br/1Ba - A                               32                     640
                       1Br/1Ba - B                               45                     720
                       1Br/1Ba - w/ Large Frt Dr                  7                     720
                       1Br/1Ba - w/o Large Frt Dr                 1                     720
                       1Br/1Ba - B                               31                     720
                       2Br/1.5 - C                               31                   1,200
                       3 Br/1.5Ba -D                             31                   1,250
                       3 Br/2.5 Ba -E                             6                   1,500
                       3 Br/2.5 Ba -F                            18                   1,550
                       IBr/1Ba - Efficiency                       2                     550



                                Overall Condition                            Average
                                Effective Age                                30 years
                                Economic Life                                45 years
                                Remaining Economic Life                      15 years
                                Deferred Maintenance                         None




HIGHEST AND BEST USE ANALYSIS

In accordance with the definition of highest and best use, an analysis of the site relating to its legal uses, physical
possibilities, and financial feasibility is appropriate. The highest and best use as vacant is to hold for future multi-
family development. The subject improvements were constructed in 1970 and consist of a 204-unit multifamily
project. The highest and best use as improved is for a continued multifamily use. Overall, the highest and best use
of the subject property is the continued use of the existing apartment project.
AMERICAN APPRAISAL ASSOCIATES, INC. VALUATION PROCEDURE PAGE 17
TATES CREEK VILLAGE, LEXINGTON, KENTUCKY

                                       THE VALUATION PROCEDURE

There are three traditional approaches, which can be employed in establishing the market value of the subject
property. These approaches and their applicability to the valuation of the subject are summarized as follows:

THE COST APPROACH

The application of the Cost Approach is based on the principle of substitution. This principle may be stated as
follows: no one is justified in paying more for a property than that amount by which he or she can obtain, by
purchase of a site and construction of a building, without undue delay, a property of equal desirability and utility.
In the case of a new building, no deficiencies in the building should exist.

In the case of income-producing real estate, the cost of construction plays a minor and relatively insignificant role
in determining market value. The Cost Approach is typically only a reliable indicator of value for: (a) new
properties; (b) special use properties; and (c) where the cost of reproducing the improvements is easily and
accurately quantified and there is no economic obsolescence. In all instances, the issue of an appropriate
entrepreneurial profit - the reward for undertaking the risk of construction, remains a highly subjective factor
especially in a market lacking significant speculative development.

THE SALES COMPARISON APPROACH

The Sales Comparison Approach is an estimate of value based upon a process of comparing recent sales of
similar properties in the surrounding or competing areas to the subject property. Inherent in this approach is the
principle of substitution.

The application of this approach consists of comparing the subject property with similar properties of the same
general type which have been sold recently or currently are available for sale in competing areas. This
comparative process involves judgment as to the similarity of the subject property and the comparable sale with
respect to many value factors such as location, contract rent levels, quality of construction, reputation and
prestige, age and condition, among others. The estimated value through this approach represents the probable
price at which a willing seller would sell the subject property to a willing and knowledgeable buyer as of the date
of value.
AMERICAN APPRAISAL ASSOCIATES, INC. VALUATION PROCEDURE PAGE 18
TATES CREEK VILLAGE, LEXINGTON, KENTUCKY

THE INCOME CAPITALIZATION APPROACH

The theory of the Income Capitalization Approach is based on the premise that present value is the value of the
cash flow and reversionary value the property will produce over a reasonable holding (ownership) period.

The Discounted Cash Flow Analysis will convert equity cash flows (including cash flows and equity reversion)
into a present value utilizing an internal rate of return (or discount rate). The Internal Rate of Return (IRR) will be
derived from a comparison of alternate investments, a comparative analysis of IRR's used by recent buyers of
similar properties, and a review of published industry surveys.

The Direct Capitalization Analysis converts one year of income into an overall value using overall capitalization
rates from similar sales. The overall rates take into consideration buyers assumptions of the market over the long-
term.

The results of the Income Capitalization Analysis are usually the primary value indicator for income producing
properties. Investors expect a reasonable rate of return on their equity investment based on the ownership risks
involved; this approach closely parallels the investment decision process.

RECONCILIATION

In this instance, we have completed the Sales Comparison and Income Capitalization Approaches to value. As
an income producing property, the income approach is a primary approach to value. The Sales Comparison
Approach is also considered reliable as investors are buying similar buildings in the market.

Our research indicates that market participants are generally not buying, selling, investing, or lending with reliance
placed on the methodology of the Cost Approach to establish the value. Therefore, we have decided that the
Cost Approach is not a reliable indicator of value for the subject, and this approach has not been utilized.
AMERICAN APPRAISAL ASSOCIATES, INC. SALES COMPARISON APPROACH PAGE 19
TATES CREEK VILLAGE, LEXINGTON, KENTUCKY

                                      SALES COMPARISON APPROACH

Use of market or comparable sales requires the collection and analysis of comparable sales data. Similar
properties recently sold are compared to the subject and adjusted based on any perceived differences. This
method is based on the premise that the costs of acquiring a substitute property would tend to establish a value
for the subject property. The premise suggests that if a substitute is unavailable in the market, the reliability of the
approach may be subordinate to the other approaches.

The reliance on substitute properties produces shortcomings in the validity of this approach. Geographic and
demographic characteristics from each submarket restrict which sales may be selected. Recent sales with a
similar physical characteristics, income levels, and location are usually limited. The sales we have identified,
however, do establish general valuation parameters as well as provide support to our conclusion derived through
the income approach method.

The standard unit of comparison among similar properties is the sales price per unit and price per square foot of
net rentable area. To accurately adjust prices to satisfy the requirements of the sales comparison approach,
numerous calculations and highly subjective judgments would be required including consideration of numerous
income and expense details for which information may be unreliable or unknown. The sales price per unit and
square foot are considered relevant to the investment decision, but primarily as a parameter against which value
estimates derived through the income approach can be judged and compared.

In examining the comparable sales, we have applied a subjective adjustment analysis, which includes specific
adjustments derived from our experience and consulting with the market participants.

SALES COMPARISON ANALYSIS

Detailed on the following pages are sales transactions involving properties located in the subject's competitive
investment market.

Photographs of the sale transactions are located in the Addenda. Following the summary of sales is an adjustment
grid that is used to arrive at a value.
AMERICAN APPRAISAL ASSOCIATES, INC. SALES COMPARISON APPROACH PAGE 20
TATES CREEK VILLAGE, LEXINGTON, KENTUCKY

SUMMARY OF COMPARABLE SALES -IMPROVED

                                                                              COMPARABLE
           DESCRIPTION                        SUBJECT                           I - 1
--------------------------------   -----------------------------   -----------------------------     ---------
  Property Name                    Tates Creek Village             Breckinridge Court                Chinoe Cr

LOCATION:
  Address                          3051 Kirklevington Drive        420-430 Redding Road              3520-3558

  City, State                      Lexington, Kentucky             Lexington, KY                     Lexington
  County                           Lexington-Fayette               Fayette-Lexington                 Fayette-L
PHYSICAL CHARACTERISTICS:
  Net Rentable Area (SF)           194,910                         268,650                           297,810
  Year Built                       1970                            1987                              1983
  Number of Units                  204                             382                               356
  Unit Mix:                                 Type           Total    Type                     Total    Type
                                   1Br/1Ba - A               32    1Br/1Ba                    246    1Br/1Ba
                                   1Br/1Ba - B               45    2Br/2Ba                    136    2Br/2Ba
                                   1Br/1Ba - w/Large Frt      7
                                   1Br/1Ba - w/o Large Frt    1
                                   1Br/1Ba - B               31
                                   2Br/1.5 - C               31
                                   3 Br/1.5 Ba - D           31
                                   3 Br/2.5 Ba - E            6
                                   3 Br/2.5 Ba - F           18
                                   1Br/1Ba - Efficiency       2

  Average Unit Size (SF)           955                             703                               837
  Land Area (Acre)                 12.0000                         15.7200                           28.1300
  Density (Units/Acre)             17.0                            24.3                              12.7
  Parking Ratio (Spaces/Unit)      1.00                            1.00                              1.00
  Parking Type (Gr., Cov., etc.)   Garage, Open Covered            Open, Covered                     Open, Cov
CONDITION:                         Good                            Average                           Good
APPEAL:                            Average                         Good                              Good
AMENITIES:
  Pool/Spa                         Yes/No                          Yes/Yes                           Yes/Yes
  Gym Room                         Yes                             Yes                               Yes
  Laundry Room                     Yes                             Yes                               Yes
  Secured Parking                  No                              No                                No
  Sport Courts                     Yes                             Yes                               Yes
  Washer/Dryer Connection          Yes                             Yes                               Yes

OCCUPANCY:                         89%                             91%                               93%
TRANSACTION DATA:
  Sale Date                                                        September, 2003                   May, 2003
  Sale Price ($)                                                   $17,800,000                       $18,050,0
  Grantor                                                          Capreit Breckinridge LP           Lexington

  Grantee                                                          Breckinridge Court Associates     Sr Chinoe

  Sale Documentation                                               Book 2399, Page 736               N/A
  Verification                                                     Nelson S. Keesey                  Nelson S.
  Telephone Number                                                 859.246.2722                      859.246.2
ESTIMATED PRO-FORMA:                                               Total $      $/Unit       $/SF     Total $
                                                                   ----------   ------       -----   ---------
  Potential Gross Income                                           $2,667,888   $6,984       $9.93   $2,388,04
  Vacancy/Credit Loss                                              $ 215,303    $ 564        $0.80   $ 161,18
                                                                   ----------   ------       -----   ---------
  Effective Gross Income                                           $2,452,585   $6,420       $9.13   $2,226,86
  Operating Expenses                                               $ 825,514    $2,161       $3.07   $ 779,40
                                                                   ----------   ------       -----   ---------
  Net Operating Income                                             $1,627,071   $4,259       $6.06   $1,447,46
                                                                   ----------   ------       -----   ---------
NOTES:                                                             None                              None

  PRICE PER UNIT                                                                  $46,597
  PRICE PER SQUARE FOOT                                                           $ 66.26
  EXPENSE RATIO                                                                      33.7%
  EGIM                                                                               7.26
  OVERALL CAP RATE                                                                   9.14%
  Cap Rate based on Pro Forma or Actual Income?                                  PRO FORMA

                                             COMPARABLE                  COMPARABLE                   COMPARAB
           DESCRIPTION                        I - 3                         I - 4                           I - 5
--------------------------------   -------------------------      --------------------------      ----------------
  Property Name                    Cloisters Apartments           Patchen Place                   Old Farm Apartme

LOCATION:
  Address                          3501-3550 Pimilco Parkway      200 Patchen Drive               3751 Appian Way

  City, State                      Lexington, KY                  Lexington, KY                   Lexington, KY
  County                           Fayette-Lexington              Fayette-Lexington               Fayette-Lexingto
PHYSICAL CHARACTERISTICS:
  Net Rentable Area (SF)           242,253                        166,080                         281,244
  Year Built                       1972                           1973                            1985
  Number of Units                  228                            202                             330
  Unit Mix:                         Type                  Total    Type                   Total    Type
                                   1Br/1Ba                  60    1Br/1Ba                  88     1Br/1Ba
                                   2Br/2Ba                 132    2Br/2Ba                  94     2Br/2Ba
                                   3Br/2Ba                  36    3Br/2Ba                  20

  Average Unit Size (SF)           1,063                          822                             852
  Land Area (Acre)                 15.4800                        13.7500                         18.8300
  Density (Units/Acre)             14.7                           14.7                            17.5
  Parking Ratio (Spaces/Unit)      1.00                           1.00                            1.00
  Parking Type (Gr., Cov., etc.)   Open, Covered                  Garage, Open, Covered           Open, Covered
CONDITION:                         Average                        Very Good                       Very Good
APPEAL:                            Average                        Average                         Very Good
AMENITIES:
  Pool/Spa                         Yes/Yes                        Yes/Yes                         Yes/Yes
  Gym Room                         Yes                            Yes                             Yes
  Laundry Room                     Yes                            Yes                             No
  Secured Parking                  No                             No                              No
  Sport Courts                     No                             Yes                             Yes
  Washer/Dryer Connection          Yes                            Yes                             Yes

OCCUPANCY:                         90%                            93%                             91%
TRANSACTION DATA:
  Sale Date                        October, 2003                  October, 2003               February, 2003
  Sale Price ($)                   $5,969,000                     $7,000,000                  $12,927,793
  Grantor                          Bruce C/ Strohn, et al         National Property Investors Aimco Old Farm

  Grantee                          Aslan Cloisters                Vermeil                         Socrates Associa

  Sale Documentation               Book 2406, Page 329            Book 2410, Page 35              Book 2345, Page
  Verification                     Nelson S. Keesey               Nelson S. Keesey                Nelson S. Keesey
  Telephone Number                 859.246.2722                   859.246.2722                    859.246.2722
ESTIMATED PRO-FORMA:                Total $     $/Unit    $/SF      Total $    $/Unit     $/SF     Total $     $/Un
                                   ---------- ------      -----   ---------- ------       -----   ---------- ----
  Potential Gross Income           $1,504,800 $6,600      $6.21   $1,306,536 $6,468       $7.87   $2,174,040 $6,5
  Vacancy/Credit Loss              $ 150,480 $ 660        $0.62   $    91,457 $ 453       $0.55   $ 195,663 $ 5
                                   ---------- ------      -----   ---------- ------       -----   ---------- ----
  Effective Gross Income           $1,354,320 $5,940      $5.59   $1,215,079 $6,015       $7.32   $1,978,377 $5,9
  Operating Expenses               $ 612,987 $2,689       $2.53   $ 486,031 $2,406        $2.93   $ 791,350 $2,3
                                   ---------- ------      -----   ---------- ------       -----   ---------- ----
  Net Operating Income             $ 741,333 $3,251       $3.06   $ 729,048 $3,609        $4.39   $1,187,027 $3,5
                                   ---------- ------      -----   ---------- ------       -----   ---------- ----
NOTES:                             None                           None                            None

  PRICE PER UNIT                               $26,180                        $34,653                         $39,
  PRICE PER SQUARE FOOT                        $ 24.64                        $ 42.15                         $ 45
  EXPENSE RATIO                                   45.3%                          40.0%                           4
  EGIM                                            4.41                           5.76                            6
  OVERALL CAP RATE                               12.42%                         10.41%                           9
  Cap Rate based on Pro Forma or
Actual Income?                                PRO FORMA                      PRO FORMA                       PRO F
AMERICAN APPRAISAL ASSOCIATES, INC. SALES COMPARISON APPROACH PAGE 21
TATES CREEK VILLAGE, LEXINGTON, KENTUCKY

                                        IMPROVED SALES MAP

                                                   [MAP]

IMPROVED SALES ANALYSIS

The improved sales indicate a sales price range from $26,180 to $50,702 per unit. Adjustments have been made
to the sales to reflect differences in location, age/condition and quality/appeal. Generally speaking, larger
properties typically have a lower price per unit when compared to smaller properties, all else being equal.
Similarly, those projects with a higher average unit size will generally have a higher price per unit. After
appropriate adjustments are made, the improved sales demonstrate an adjusted range for the subject from
$26,180 to $34,653 per unit with a mean or average adjusted price of $31,158 per unit. The median adjusted
price is $32,618 per unit. Based on the following analysis, we have concluded to a value of $32,500 per unit,
which results in an "as is" value of $6,600,000 (rounded after necessary adjustment, if any).
AMERICAN APPRAISAL ASSOCIATES, INC. SALES COMPARISON APPROACH PAGE 22
TATES CREEK VILLAGE, LEXINGTON, KENTUCKY

SALES ADJUSTMENT GRID

                                                                         COMPARABLE                  COMPARABLE
            DESCRIPTION                        SUBJECT                     I - 1                       I - 2
-----------------------------------   ------------------------     ----------------------    ------------------
  Property Name                       Tates Creek Village          Breckinridge Court        Chinoe Creek Apart

  Address                             3051 Kirklevington Drive     420-430 Redding Road      3520-3558 Creekwoo

  City                                Lexington, Kentucky          Lexington, KY             Lexington, KY
  Sale Date                                                        September, 2003           May, 2003
  Sale Price ($)                                                   $17,800,000               $18,050,000
  Net Rentable Area (SF)              194,910                      268,650                   297,810
  Number of Units                     204                          382                       356
  Price Per Unit                                                   $46,597                   $50,702
  Year Built                          1970                         1987                      1983
  Land Area (Acre)                    12.0000                      15.7200                   28.1300
VALUE ADJUSTMENTS                        DESCRIPTION                   DESCRIPTION   ADJ.        DESCRIPTION
  Property Rights Conveyed            Fee Simple Estate            Fee Simple Estate 0%      Fee Simple Estate
  Financing                                                        Cash To Seller     0%     Cash To Seller
  Conditions of Sale                                               Arm's Length       0%     Arm's Length
  Date of Sale (Time)                                              09-2003            0%     05-2003
VALUE AFTER TRANS. ADJUST. ($/UNIT)                                        $46,597                     $50,702
  Location                                                         Comparable         0%     Comparable
  Number of Units                     204                          382              -10%     356
  Quality / Appeal                    Good                         Superior         -15%     Superior
  Age / Condition                     1970                         1987 / Average   -10%     1983 / Good
  Occupancy at Sale                   89%                          91%                0%     93%
  Amenities                           Good                         Comparable         0%     Comparable
  Average Unit Size (SF)              955                          703                5%     837
PHYSICAL ADJUSTMENT                                                                 -30%
FINAL ADJUSTED VALUE ($/UNIT)                                              $32,618                    $32,956

                                              COMPARABLE                 COMPARABLE                  COMPARABLE
            DESCRIPTION                         I - 3                      I - 4                       I - 5
-----------------------------------   -------------------------    ----------------------     -----------------
  Property Name                       Cloisters Apartments         Patchen Place              Old Farm Apartmen

  Address                             3501-3550 Pimilco Parkway     200 Patchen Drive         3751 Appian Way

  City                                Lexington, KY                 Lexington, KY             Lexington, KY
  Sale Date                           October, 2003                 October, 2003             February, 2003
  Sale Price ($)                      $5,969,000                    $7,000,000                $12,927,793
  Net Rentable Area (SF)              242,253                       166,080                   281,244
  Number of Units                     228                           202                       330
  Price Per Unit                      $26,180                       $34,653                   $39,175
  Year Built                          1972                          1973                      1985
  Land Area (Acre)                    15.4800                       13.7500                   18.8300
VALUE ADJUSTMENTS                         DESCRIPTION       ADJ.        DESCRIPTION   ADJ.        DESCRIPTION
  Property Rights Conveyed            Fee Simple Estate      0%     Fee Simple Estate 0%      Fee Simple Estate
  Financing                           Cash To Seller         0%     Cash To Seller     0%     Cash To Seller
  Conditions of Sale                  Arm's Length           0%     Arm's Length       0%     Arm's    Length
  Date of Sale (Time)                 10-2003                0%     10-2003            0%     02-2003
VALUE AFTER TRANS. ADJUST. ($/UNIT)              $26,180                    $34,653                    $39,175
  Location                            Comparable             0%     Comparable         0%     Comparable
  Number of Units                     228                    0%     202                0%     330
  Quality / Appeal                    Comparable             0%     Comparable         0%     Superior
  Age / Condition                     1972 / Average         0%     1973 / Very Good   0%     1985 / Very Good
  Occupancy at Sale                   90%                    0%     93%                0%     91%
  Amenities                           Comparable             0%     Comparable         0%     Comparable
  Average Unit Size (SF)              1,063                  0%     822                0%     852
PHYSICAL ADJUSTMENT                                          0%                        0%
FINAL ADJUSTED VALUE ($/UNIT)                    $26,180                    $34,653                   $29,381




SUMMARY

                   VALUE RANGE (PER UNIT)                   $26,180 TO $34,653
                   MEAN (PER UNIT)                          $31,158
                   MEDIAN (PER UNIT)                        $32,618
                   VALUE CONCLUSION (PER UNIT)              $32,500
              VALUE INDICATED BY SALES COMPARISON APPROACH                            $6,630,000
              ROUNDED                                                                 $6,600,000




NET OPERATING INCOME (NOI) ANALYSIS

We have also conducted a net operating income (NOI) comparison analysis. The NOI effectively takes into
account the various physical, location, and operating aspects of the sale. When the subject's NOI is compared to
the sale NOI, a percent adjustment can be arrived at. The following table illustrates this analysis.
AMERICAN APPRAISAL ASSOCIATES, INC. SALES COMPARISON APPROACH PAGE 23
TATES CREEK VILLAGE, LEXINGTON, KENTUCKY

                                      NOI PER UNIT COMPARISON
                                      -----------------------
                           SALE PRICE               NOI/      SUBJECT NOI
   COMPARABLE    NO. OF    ----------           ----------   --------------            ADJUSTMENT    INDICATED
       NO.       UNITS     PRICE/UNIT    OAR     NOI/UNIT    SUBJ. NOI/UNIT              FACTOR      VALUE/UNIT
   ----------    ------    ----------- ------ ----------- --------------               ----------    ----------
      I-1         382      $17,800,000   9.14%   $1,627,071     $673,158                 0.775        $36,099
                           $    46,597           $    4,259     $ 3,300
      I-2         356      $18,050,000   8.02%   $1,447,463     $673,158                  0.812       $41,149
                           $    50,702           $    4,066     $ 3,300
      I-3         228      $ 5,969,000 12.42%    $ 741,333      $673,158                  1.015       $26,569
                           $    26,180           $    3,251     $ 3,300
      I-4         202      $ 7,000,000 10.41%    $ 729,048      $673,158                  0.914       $31,683
                           $    34,653           $    3,609     $ 3,300
      I-5         330      $12,927,793   9.18%   $1,187,027     $673,158                  0.917       $35,938
                           $    39,175           $    3,597     $ 3,300



                                                      PRICE/UNIT
                                                      ----------
                                    Low            High    Average          Median

                                  $26,569       $41,149     $34,288      $35,938



                             VALUE ANALYSIS BASED ON COMPARABLES NOI PER UNIT
                             ------------------------------------------------
                           Estimated Price Per Unit                 $   32,000
                                                                    ----------
                           Number of Units                                 204

                                                                             ----------


                           Value Based on NOI Analysis                       $6,528,000
                                                                  Rounded    $6,500,000




The adjusted sales indicate a range of value between $26,569 and $41,149 per unit, with an average of $34,288
per unit. Based on the subject's competitive position within the improved sales, a value of $32,000 per unit is
estimated. This indicates an "as is" market value of $6,500,000 (rounded after necessary adjustment, if any) for
the NOI Per Unit Analysis.

EFFECTIVE GROSS INCOME MULTIPLIER (EGIM) ANALYSIS

The effective gross income multiplier (EGIM) is derived by dividing the sales price by the total effective gross
income. The following table illustrates the EGIMs for the comparable improved sales.

                           EFFECTIVE GROSS INCOME MULTIPLIER COMPARISON
                           --------------------------------------------
                             SALE PRICE
      COMPARABLE     NO. OF -----------    EFFECTIVE    OPERATING                       SUBJECT
         NO.         UNITS   PRICE/UNIT   GROSS INCOME   EXPENSE    OER              PROJECTED OER       EGIM
      ----------     ------ ----------- ------------ --------- ------                --------------      ----
         I-1          382    $17,800,000   $2,452,585   $ 825,514 33.66%                                 7.26
                             $    46,597
          I-2         356    $18,050,000   $2,226,866   $ 779,403 35.00%                                 8.11
                             $    50,702
          I-3         228    $ 5,969,000   $1,354,320   $ 612,987 45.26%                  49.74%         4.41
                             $    26,180
          I-4         202    $ 7,000,000   $1,215,079   $ 486,031 40.00%                                 5.76
                             $    34,653
          I-5         330    $12,927,793   $1,978,377   $ 791,350 40.00%                                 6.53
                             $    39,175
                     EGIM
                     ----
    Low          High    Average       Median

    4.41         8.11     6.41          6.53



VALUE ANALYSIS BASED ON EGIM'S OF COMPARABLE SALES
--------------------------------------------------
Estimate EGIM                                 4.25
                                        ----------
Subject EGI                             $1,461,240

                                         ----------

Value Based on EGIM Analysis             $6,210,270
                                 Rounded $6,200,000

                     Value Per Unit     $   30,392
AMERICAN APPRAISAL ASSOCIATES, INC. SALES COMPARISON APPROACH PAGE 24
TATES CREEK VILLAGE, LEXINGTON, KENTUCKY

There is an inverse relationship, which generally holds among EGIMs and operating expenses. Properties, which
have higher expense ratios, typically sell for relatively less and therefore produce a lower EGIM. As will be
illustrated in the Income Capitalization Approach of this report, the subject's operating expense ratio (OER) is
estimated at 49.74% before reserves. The comparable sales indicate a range of expense ratios from 33.66% to
45.26%, while their EGIMs range from 4.41 to 8.11. Overall, we conclude to an EGIM of 4.25, which results in
an "as is" value estimate in the EGIM Analysis of $6,200,000.

SALES COMPARISON CONCLUSION

The three valuation methods in the Sales Comparison Approach are shown below. The overall value via the Sales
Comparison Approach is estimated at $6,500,000.

                   Price Per Unit                                                $6,600,000
                   NOI Per Unit                                                  $6,500,000
                   EGIM Analysis                                                 $6,200,000

                   Sales Comparison Conclusion                                   $6,500,000
AMERICAN APPRAISAL ASSOCIATES, INC. INCOME CAPITALIZATION APPROACH PAGE
25
TATES CREEK VILLAGE, LEXINGTON, KENTUCKY

                                 INCOME CAPITALIZATION APPROACH

The income capitalization approach is based on the premise that value is created by the expectation of future
benefits. We estimated the present value of those benefits to derive an indication of the amount that a prudent,
informed purchaser-investor would pay for the right to receive them as of the date of value.

This approach requires an estimate of the NOI of a property. The estimated NOI is then converted to a value
indication by use of either the direct capitalization or the discounted cash flow analysis (yield capitalization).

Direct capitalization uses a single year's stabilized NOI as a basis for a value indication by dividing the income by
a capitalization rate. The rate chosen accounts for a recapture of the investment by the investor and should reflect
all factors that influence the value of the property, such as tenant quality, property condition, neighborhood
change, market trends, interest rates, and inflation. The rate may be extracted from local market transactions or,
when transaction evidence is lacking, obtained from trade sources.

A discounted cash flow analysis focuses on the operating cash flows expected from the property and the
proceeds of a hypothetical sale at the end of a holding period (the reversion). The cash flows and reversion are
discounted to their present values using a market-derived discount rate and are added together to obtain a value
indication. Because benefits to be received in the future are worth less than the same benefits received in the
present, this method weights income in the early years more heavily than the income and the sale proceeds to be
received later. The strength of the discounted cash flow method is its ability to recognize variations in projected
net income, such as those caused by inflation, stepped leases, neighborhood change, or tenant turnover. Its
weakness is that it requires many judgments regarding the actions of likely buyers and sellers of the property in
the future.

In some situations, both methods yield a similar result. The discounted cash flow method is typically more
appropriate for the analysis of investment properties with multiple or long-term leases, particularly leases with
cancellation clauses or renewal options. It is especially useful for multi-tenant properties in volatile markets. The
direct capitalization
AMERICAN APPRAISAL ASSOCIATES, INC. INCOME CAPITALIZATION APPROACH PAGE
26
TATES CREEK VILLAGE, LEXINGTON, KENTUCKY

method is normally more appropriate for properties with relatively stable operating histories and expectations.

A pro forma analysis for the first year of the investment is made to estimate a reasonable potential net operating
income for the Subject Property. Such an analysis entails an estimate of the gross income the property should
command in the marketplace. From this total gross income must be deducted an allowance for vacancy/collection
loss and operating expenses as dictated by general market conditions and the overall character of the subject's
tenancy and leased income to arrive at a projected estimate of net operating income. Conversion of the net
operating income to an indication of value is accomplished by the process of capitalization, as derived primarily
from market data.

MARKET RENT ANALYSIS

In order to determine a market rental rate for the subject, a survey of competing apartment communities was
performed. This survey was displayed previously in the market analysis section of the report. Detailed information
pertaining to each of the comparable rental communities, along with photographs, is presented in the Addenda of
this report.

The following charts display the subject's current asking and actual rent rates as well as a comparison with the
previous referenced comparable rental properties.

                               SUMMARY OF ACTUAL AVERAGE RENTS

                                                                       Average
                                                    Unit Area    ----------------
                          Unit Type                 (Sq. Ft.)    Per Unit Per SF      %Occupied
                  --------------------------        ---------    -------- ------      ---------
                  1Br/1Ba - A                          640         $519    $ 0.81       83.3%
                  1Br/1Ba - B                          720         $539    $ 0.75       75.0%
                  1Br/1Ba - w/ Large Frt Dr            720         $519    $ 0.72       85.7%
                  1Br/1Ba - w/o Large Frt Dr           720         $539    $ 0.75      100.0%
                  1Br/1Ba - B                          720         $559    $ 0.78      100.0%
                  2Br/1.5 - C                         1200         $729    $ 0.61       95.7%
                  3 Br/1.5 Ba -D                      1250         $749    $ 0.60       96.6%
                  3 Br/2.5 Ba -E                      1500         $919    $ 0.61      100.0%
                  3 Br/2.5 Ba -F                      1550         $949    $ 0.61       88.9%
                  1Br/1Ba - Efficiency                 550         $449    $ 0.82      100.0%
AMERICAN APPRAISAL ASSOCIATES, INC. INCOME CAPITALIZATION APPROACH PAGE
27
TATES CREEK VILLAGE, LEXINGTON, KENTUCKY

                                                RENT ANALYSIS

                                                                               COMPARABLE RENTS
                                                       --------------------------------------------------
                                                           R-1           R-2            R-3        R-4
                                                       --------------------------------------------------
                                                       Breckinridge                 Sonnet Cove Patchen
                                                           Court     Chinoe Creek Apartments      Place
                                                       --------------------------------------------------
                                     SUBJECT SUBJECT                       COMPARISON TO SUBJECT
                    SUBJECT UNIT       ACTUAL   ASKING --------------------------------------------------
 DESCRIPTION           TYPE            RENT     RENT     Superior      Superior       Similar    Superior
---------------------------------------------------------------------------------------------------------
Monthly Rent    1Br/1Ba - A          $    519 $    519   $   582        $ 559         $ 510       $ 499
Unit Area (SF)                            640      640       708           676           650         656
Monthly Rent
 Per Sq. Ft.                         $ 0.81 $ 0.81       $ 0.82         $ 0.83        $ 0.78      $ 0.76

Monthly Rent       1Br/1Ba - B              $     539   $     539                                                    $     599
Unit Area (SF)                                    720         720                                                          919
Monthly Rent
 Per Sq. Ft.                                $    0.75   $    0.75                                                    $ 0.65

Monthly Rent       1Br/1Ba - w/ Large       $     559   $     559                    $     629
Unit Area (SF)     Frt Dr                         720         720                        1,000
Monthly Rent
 Per Sq. Ft.                                $    0.78   $    0.78                    $ 0.63

Monthly Rent       1Br/1Ba - w/o Large      $     559   $     559
Unit Area (SF)     Frt Dr                         720         720
Monthly Rent
 Per Sq. Ft.                                $    0.78   $    0.78

Monthly Rent       1Br/1Ba - B              $     559   $     559
Unit Area (SF)                                    720         720
Monthly Rent
 Per Sq. Ft.                                $    0.78   $    0.78

Monthly Rent       2Br/1.5 - C              $     729   $     729   $     774                       $     599        $     689
Unit Area (SF)                                  1,200       1,200       1,080                           1,050            1,100
Monthly Rent
 Per Sq. Ft.                                $    0.61   $    0.61   $    0.72                       $ 0.57           $ 0.63

Monthly Rent       3 Br/1.5 Ba -D           $     749   $     749                                   $     727
Unit Area (SF)                                  1,250       1,250                                       1,200
Monthly Rent
 Per Sq. Ft.                                $    0.60   $    0.60                                   $ 0.61

Monthly Rent       3 Br/2.5 Ba -E           $     919   $     919                                   $     804
Unit Area (SF)                                  1,500       1,500                                       1,400
Monthly Rent
 Per Sq. Ft.                                $    0.61   $    0.61                                   $ 0.57

Monthly Rent       3 Br/2.5 Ba -F           $     949   $     949
Unit Area (SF)                                  1,550       1,550
Monthly Rent
 Per Sq. Ft.                                $    0.61   $    0.61

Monthly Rent       1Br/1Ba -                $     449   $     449
                   Efficiency
Unit Area (SF)                                    550         550
Monthly Rent
 Per Sq. Ft.                                $    0.82   $    0.82




CONCLUDED MARKET RENTAL RATES AND TERMS

Based on this analysis above, the subject's concluded market rental rates and gross rental income is calculated as
follows:
AMERICAN APPRAISAL ASSOCIATES, INC. INCOME CAPITALIZATION APPROACH PAGE
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TATES CREEK VILLAGE, LEXINGTON, KENTUCKY

                              GROSS RENTAL INCOME PROJECTION

                                                            Market Rent
                                              Unit Area ---------------- Monthly       Annual
         Unit Type           Number of Units (Sq. Ft.) Per Unit Per SF      Income     Income
 ----------------------------------------------------------------------------------------------
 1Br/1Ba - A                       32             640     $ 520    $ 0.81 $ 16,640 $ 199,680
 1Br/1Ba - B                       45             720     $ 540    $ 0.75 $ 24,300 $ 291,600
 1Br/1Ba - w/ Large Frt Dr          7             720     $ 560    $ 0.78 $ 3,920 $      47,040
 1Br/1Ba - w/o Large Frt Dr         1             720     $ 560    $ 0.78 $     560 $     6,720
 1Br/1Ba - B                       31             720     $ 560    $ 0.78 $ 17,360 $ 208,320
 2Br/1.5 - C                       31           1,200     $ 700    $ 0.58 $ 21,700 $ 260,400
 3 Br/1.5 Ba -D                    31           1,250     $ 720    $ 0.58 $ 22,320 $ 267,840
 3 Br/2.5 Ba -E                     6           1,500     $ 900    $ 0.60 $ 5,400 $      64,800
 3 Br/2.5 Ba -F                    18           1,550     $ 950    $ 0.61 $ 17,100 $ 205,200
 1Br/1Ba - Efficiency               2             550     $ 450    $ 0.82 $     900 $    10,800
                                                                           -------- ----------
                                                                   Total   $130,200 $1,562,400
                                                                           ======== ==========




PRO FORMA ANALYSIS

For purposes of this appraisal, we were provided with income and expense data for the subject property. A
summary of this data is presented on the following page.
AMERICAN APPRAISAL ASSOCIATES, INC. INCOME CAPITALIZATION APPROACH PAGE
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TATES CREEK VILLAGE, LEXINGTON, KENTUCKY

SUMMARY OF HISTORICAL INCOME & EXPENSES

                         FISCAL YEAR       2000    FISCAL YEAR     2001   FISCAL YEAR     2002    FISCAL
                         ------------------------ --------------------- ---------------------- -------
                                  ACTUAL                    ACTUAL                 ACTUAL           MANAG
                         ------------------------ --------------------- ---------------------- -------
      DESCRIPTION           TOTAL        PER UNIT     TOTAL     PER UNIT     TOTAL     PER UNIT      TOTA
---------------------------------------------------------------------------------------------------------
Revenues
 Rental Income           $ 1,555,640   $     7,626 $ 1,675,314   $8,212   $ 1,055,779 $     5,175 $ 1,303

 Vacancy                 $    94,724   $      464 $    101,500   $ 498    $   130,055 $      638 $     87
 Credit Loss/Concessions $    84,916   $      416 $     29,802   $ 146    $    14,540 $       71 $     16
                         --------------------------------------------------------------------------------
  Subtotal               $   179,640   $      881 $    131,302   $ 644    $   144,595 $      709 $    103

 Laundry Income            $     6,445   $       32 $      5,046   $   25   $     2,418 $       12 $      3
 Garage Revenue            $         0   $        0 $          0   $    0   $         0 $        0 $
 Other Misc. Revenue       $    53,960   $      265 $     50,387   $ 247    $    36,790 $      180 $     54
                           --------------------------------------------------------------------------------
  Subtotal Other Income    $    60,405   $      296 $     55,433   $ 272    $    39,208 $      192 $     57

                           --------------------------------------------------------------------------------
Effective Gross Income     $ 1,436,405   $    7,041 $ 1,599,445    $7,840   $   950,392 $    4,659 $ 1,257

Operating Expenses
 Taxes                     $    49,411   $      242   $    50,840   $ 249    $    48,080   $   236   $    53
 Insurance                 $    19,459   $       95   $    25,831   $ 127    $    22,606   $   111   $    27
 Utilities                 $   262,452   $    1,287   $   318,225   $1,560       187,126   $   917   $   221
 Repair & Maintenance      $   109,437   $      536   $   113,595   $ 557    $    71,236   $   349   $    96
 Cleaning                  $    21,074   $      103   $    28,996   $ 142    $     4,350   $    21   $
 Landscaping               $         0   $        0   $         0   $    0   $         0   $     0   $
 Security                  $         0   $        0   $         0   $    0   $         0   $     0   $
 Marketing & Leasing       $    34,468   $      169   $    32,576   $ 160    $    12,512   $    61   $    16
 General Administrative    $   193,249   $      947   $   201,775   $ 989    $    92,767   $   455   $   125
 Management                $    76,446   $      375   $    79,895   $ 392    $    47,985   $   235   $    61
 Miscellaneous             $         0   $        0   $         0   $    0   $         0   $     0   $

                         --------------------------------------------------------------------------------
Total Operating Expenses $   765,996   $    3,755 $    851,733   $4,175   $   486,662 $    2,386 $    601

 Reserves                  $         0   $        0   $         0   $    0   $         0   $     0   $

                           --------------------------------------------------------------------------------
Net Income                 $   670,409   $    3,286 $    747,712   $3,665   $   463,730 $    2,273 $    655




                                      ANNUALIZED      2003
                                     -----------------------
                                           PROJECTION                AAA PROJECTION
                                     ----------------------- ---------------------------
                  DESCRIPTION            TOTAL     PER UNIT      TOTAL    PER UNIT    %
            -----------------------------------------------------------------------------
            Revenues
             Rental Income           $ 1,602,792 $     7,857 $1,562,400    $7,659   100.0%

             Vacancy                 $    169,303 $      830 $ 124,992     $ 613      8.0%
             Credit Loss/Concessions $     73,715 $      361 $    31,248   $ 153      2.0%
                                     ----------------------------------------------------
              Subtotal               $    243,018 $    1,191 $ 156,240     $ 766     10.0%

             Laundry Income          $        581 $        3 $     2,040   $   10     0.1%
             Garage Revenue          $          0 $        0 $         0   $    0     0.0%
             Other Misc. Revenue     $     57,515 $      282 $    53,040   $ 260      3.4%
                                     ----------------------------------------------------
             Subtotal Other Income   $     58,096 $      285 $    55,080   $ 270      3.5%

                                     ----------------------------------------------------
            Effective Gross Income   $ 1,417,870 $     6,950 $1,461,240    $7,163   100.0%
           Operating Expenses
            Taxes                        $      64,212    $      315   $    61,200     $ 300        4.2%
            Insurance                    $      38,533    $      189   $    30,600     $ 150        2.1%
            Utilities                    $     299,615    $    1,469   $   285,600     $1,400      19.5%
            Repair & Maintenance         $     131,077    $      643   $   112,200     $ 550        7.7%
            Cleaning                     $       9,390    $       46   $    15,300     $   75       1.0%
            Landscaping                  $           0    $        0   $         0     $    0       0.0%
            Security                     $           0    $        0   $         0     $    0       0.0%
            Marketing & Leasing          $      16,661    $       82   $    16,320     $   80       1.1%
            General Administrative       $     128,964    $      632   $   132,600     $ 650        9.1%
            Management                   $      68,056    $      334   $    73,062     $ 358        5.0%
            Miscellaneous                $           0    $        0   $         0     $    0       0.0%

                                    ----------------------------------------------------
           Total Operating Expenses $    756,508 $    3,708 $ 726,882     $3,563    49.7%

            Reserves                     $            0   $        0   $    61,200     $   300      8.4%

                                         ----------------------------------------------------
           Net Income                    $    661,362 $    3,242 $ 673,158     $3,300    46.1%




REVENUES AND EXPENSES

The subject's revenue and expense projections are displayed on the previous chart. Rental income is based on
the market analysis previously discussed. Other income consists of forfeited deposits, laundry income, late rent
payments, month to month fees, pet fees, vending machine revenue, etc.

We forecasted the property's annual operating expenses after reviewing its historical performance at the subject
property. We analyzed each item of expense and attempted to forecast amounts a typical informed investor
would consider reasonable.

VACANCY AND COLLECTION LOSS

An investor is primarily interested in the annual revenue an income property is likely to produce over a specified
period of time, rather than the income it could produce if it were always 100% occupied and all tenants were
paying their rent in full and on time. An investor normally expects some income loss as tenants vacate, fail to pay
rent, or pay their rent late.

We have projected a stabilized vacancy and collection loss rate of 10% based on the subject's historical
performance, as well as the anticipated future market conditions.
AMERICAN APPRAISAL ASSOCIATES, INC. INCOME CAPITALIZATION APPROACH PAGE
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TATES CREEK VILLAGE, LEXINGTON, KENTUCKY

RESERVES FOR REPLACEMENT

"Reserves for replacements" is a contingency account allocated to the expenses of the property to provide for
replacement of short-lived items and for unforeseen necessary capital expenditures. We have utilized the Korpacz
Real Estate Investor Survey of the national apartment market, which reports a range of replacement reserves
between $150 and $400 per unit. For purposes of this analysis, we have included an allowance of $300 per unit
for reserves for replacement.

CAPITAL EXPENDITURES

Capital expenditures represent expenses for immediate repair or replacement of items that have average to long
lives. Based on our inspection of the property as well as discussions with property management personnel, there
are no major items remaining in need of repair or replacement that would require an expense beyond our reserves
for replacement. Therefore an allowance of $300 per unit should be satisfactory in our reserves for replacement
to cover future capital expenditures.

DISCOUNTED CASH FLOW ANALYSIS

As the subject is a multi-tenant income property, the Discounted Cash Flow Method is considered appropriate.
This method is especially meaningful in that it isolates the timing of the annual cash flows and discounts them,
along with the expected equity reversion, to a present value. The present value of the cash flow is added to the
present value of the reversion, resulting in a total property value.

INVESTMENT CRITERIA

Appropriate investment criteria will be derived for the subject based upon analysis of comparable sales and a
survey of real estate investors. The following table summarizes the findings of Korpacz National Investor Survey
for the most recent period.

                              KORPACZ NATIONAL INVESTOR SURVEY
                                      1ST QUARTER 2003
                                NATIONAL APARTMENT MARKET

                                                    CAPITALIZATION RATES
                                              --------------------------------
                                                GOING-IN           TERMINAL
                                              ------------      --------------
                                              LOW     HIGH      LOW     HIGH
                                              --------------------------------
                             RANGE            5.50%   9.50%     6.00%   10.00%
                             AVERAGE              7.61%              8.14%
AMERICAN APPRAISAL ASSOCIATES, INC. INCOME CAPITALIZATION APPROACH PAGE
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TATES CREEK VILLAGE, LEXINGTON, KENTUCKY

                                            SUMMARY OF OVERALL
                                           CAPITALIZATION RATES
                             ------------------------------------------------
                             COMP. NO. SALE DATE OCCUP. PRICE/UNIT      OAR
                             --------- --------- ------ ---------- -----
                                I-1       Sep-03     91%    $ 46,597    9.14%
                                I-2       May-03     93%    $ 50,702    8.02%
                                I-3       Oct-03     90%    $ 26,180   12.42%
                                I-4       Oct-03     93%    $ 34,653   10.41%
                                I-5       Feb-03     91%    $ 39,175    9.18%
                                                                High   12.42%
                                                                 Low    8.02%
                                                             Average    9.84%




Based on this information, we have concluded the subject's overall capitalization rate should be 10.50%. The
terminal capitalization rate is applied to the net operating income estimated for the year following the end of the
holding period. Based on the concluded overall capitalization rate, the age of the property and the surveyed
information, we have concluded the subject's terminal capitalization rate to be 11.50%. Finally, the subject's
discount rate or yield rate is estimated based on the previous investor survey and an examination of returns
available on alternative investments in the market. Based on this analysis, the subject's discount rate is estimated
to be 12.50%.

HOLDING PERIOD

The survey of investors indicates that most investors are completing either 10-year cash flows or extending the
analysis to the end of the lease if it is more than 10-years. A 10-year period has been used in the analysis of the
subject with the eleventh year stabilized NOI used to determine the reversion.

SELLING COSTS

Sales of similar size properties are typically accomplished with the aid of a broker and will also incur legal and
other transaction related cost. Based on our survey of brokers and a review of institutional investor projections,
an allowance of 2.00% of the sale amount is applied.

DISCOUNTED CASH FLOW CONCLUSION

Discounting the annual cash flows and the equity reversion at the selected rate of 12.50% indicates a value of
$6,800,000. In this instance, the reversion figure contributes approximately 35% of the total value. Investors
surveyed for this assignment indicated they
AMERICAN APPRAISAL ASSOCIATES, INC. INCOME CAPITALIZATION APPROACH PAGE
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TATES CREEK VILLAGE, LEXINGTON, KENTUCKY

would prefer to have the cash flow contribute anywhere from 50% to 60%. Overall, the blend seems reasonable.
The cash flow and pricing matrix are located on the following pages.
AMERICAN APPRAISAL ASSOCIATES, INC. INCOME CAPITALIZATION APPROACH PAGE
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TATES CREEK VILLAGE, LEXINGTON, KENTUCKY



DISCOUNTED CASH FLOW ANALYSIS

                                   TATES CREEK VILLAGE

                                              AIMCO

               YEAR                      OCT-2004      OCT-2005      OCT-2006      OCT-2007      OCT-2008
           FISCAL YEAR                      1             2             3             4             5
-------------------------------------   ==========    ==========    ==========    ==========    ==========    =
REVENUE
   Base Rent                            $1,562,400    $1,609,272    $1,657,550    $1,707,277    $1,758,495    $

   Vacancy                              $ 124,992     $ 128,742     $ 132,604     $ 136,582     $ 140,680     $
   Credit Loss                          $   31,248    $   32,185    $   33,151    $   34,146    $   35,170    $
   Concessions                          $        0    $        0    $        0    $        0    $        0    $
                                        ----------    ----------    ----------    ----------    ----------    -
     Subtotal                           $ 156,240     $ 160,927     $ 165,755     $ 170,728     $ 175,849     $

   Laundry Income                       $    2,040    $    2,101    $    2,164    $    2,229    $    2,296    $
   Garage Revenue                       $        0    $        0    $        0    $        0    $        0    $
   Other Misc. Revenue                  $   53,040    $   54,631    $   56,270    $   57,958    $   59,697    $
                                        ----------    ----------    ----------    ----------    ----------    -
     Subtotal Other Income              $   55,080    $   56,732    $   58,434    $   60,187    $   61,993    $
                                        ----------    ----------    ----------    ----------    ----------    -

EFFECTIVE GROSS INCOME                  $1,461,240    $1,505,077    $1,550,230    $1,596,736    $1,644,638    $

OPERATING EXPENSES:

   Taxes                                $   61,200    $   63,036    $   64,927    $   66,875    $   68,881    $
   Insurance                            $   30,600    $   31,518    $   32,464    $   33,437    $   34,441    $
   Utilities                            $ 285,600     $ 294,168     $ 302,993     $ 312,083     $ 321,445     $
   Repair & Maintenance                 $ 112,200     $ 115,566     $ 119,033     $ 122,604     $ 126,282     $
   Cleaning                             $   15,300    $   15,759    $   16,232    $   16,719    $   17,220    $
   Landscaping                          $        0    $        0    $        0    $        0    $        0    $
   Security                             $        0    $        0    $        0    $        0    $        0    $
   Marketing & Leasing                  $   16,320    $   16,810    $   17,314    $   17,833    $   18,368    $
   General Administrative               $ 132,600     $ 136,578     $ 140,675     $ 144,896     $ 149,242     $
   Management                           $   73,062    $   75,254    $   77,511    $   79,837    $   82,232    $
   Miscellaneous                        $        0    $        0    $        0    $        0    $        0    $
                                        ----------    ----------    ----------    ----------    ----------    -

TOTAL OPERATING EXPENSES                $   726,882   $   748,688   $   771,149   $   794,284   $   818,112   $

   Reserves                             $   61,200    $   63,036    $   64,927    $   66,875    $   68,881    $
                                        ----------    ----------    ----------    ----------    ----------    -

NET OPERATING INCOME                    $ 673,158     $ 693,353     $ 714,153     $ 735,578     $ 757,645     $
                                        ==========    ==========    ==========    ==========    ==========    =

   Operating Expense Ratio (% of EGI)         49.7%         49.7%         49.7%         49.7%         49.7%
   Operating Expense Per Unit           $    3,563    $    3,670    $    3,780    $    3,894    $    4,010    $
                                        ==========    ==========    ==========    ==========    ==========    =




               YEAR                      OCT-2010      OCT-2011      OCT-2012      OCT-2013      OCT-2014
           FISCAL YEAR                      7             8             9             10            11
-------------------------------------   ==========    ==========    ==========    ==========    ==========
REVENUE
   Base Rent                            $1,865,587    $1,921,555    $1,979,202    $2,038,578    $2,099,735

   Vacancy                              $ 149,247     $ 153,724     $ 158,336     $ 163,086     $ 167,979
   Credit Loss                          $   37,312    $   38,431    $   39,584    $   40,772    $   41,995
   Concessions                          $        0    $        0    $        0    $        0    $        0
                                        ----------    ----------    ----------    ----------    ----------
     Subtotal                           $ 186,559     $ 192,155     $ 197,920     $ 203,858     $ 209,973
   Laundry Income                          $    2,436    $    2,509    $    2,584     $    2,662    $    2,742
   Garage Revenue                          $        0    $        0    $        0     $        0    $        0
   Other Misc. Revenue                     $   63,333    $   65,233    $   67,189     $   69,205    $   71,281
                                           ----------    ----------    ----------     ----------    ----------
     Subtotal Other Income                 $   65,768    $   67,741    $   69,774     $   71,867    $   74,023
                                           ----------    ----------    ----------     ----------    ----------

EFFECTIVE GROSS INCOME                     $1,744,797    $1,797,141    $1,851,055     $1,906,587    $1,963,784

OPERATING EXPENSES:

   Taxes                                   $   73,076    $   75,268    $   77,526     $   79,852    $   82,248
   Insurance                               $   36,538    $   37,634    $   38,763     $   39,926    $   41,124
   Utilities                               $ 341,021     $ 351,252     $ 361,790      $ 372,643     $ 383,823
   Repair & Maintenance                    $ 133,973     $ 137,992     $ 142,132      $ 146,396     $ 150,787
   Cleaning                                $   18,269    $   18,817    $   19,382     $   19,963    $   20,562
   Landscaping                             $        0    $        0    $        0     $        0    $        0
   Security                                $        0    $        0    $        0     $        0    $        0
   Marketing & Leasing                     $   19,487    $   20,072    $   20,674     $   21,294    $   21,933
   General Administrative                  $ 158,331     $ 163,081     $ 167,974      $ 173,013     $ 178,203
   Management                              $   87,240    $   89,857    $   92,553     $   95,329    $   98,189
   Miscellaneous                           $        0    $        0    $        0     $        0    $        0
                                           ----------    ----------    ----------     ----------    ----------

TOTAL OPERATING EXPENSES                   $   867,935   $   893,973   $   920,792    $   948,416   $   976,869

   Reserves                                $   73,076    $   75,268    $   77,526     $   79,852    $   82,248
                                           ----------    ----------    ----------     ----------    ----------

NET OPERATING INCOME                       $ 803,786     $ 827,899     $ 852,736      $ 878,319     $ 904,668
                                           ==========    ==========    ==========     ==========    ==========

   Operating Expense Ratio (% of EGI)            49.7%         49.7%         49.7%          49.7%         49.7%
   Operating Expense Per Unit              $    4,255    $    4,382    $    4,514     $    4,649    $    4,789
                                           ==========    ==========    ==========     ==========    ==========




                      Estimated Stabilized NOI                         $   673,158
                      Months to Stabilized                                       1
                      Stabilized Occupancy                                    92.0%



                      Sales Expense Rate                                      2.00%
                      Discount Rate                                          12.50%
                      Terminal Cap Rate                                      11.50%




                                      "DCF" VALUE ANALYSIS

                       Gross Residual Sale Price                       $ 7,866,679
                            Less: Sales Expense                        $   157,334
                                                                       -----------
                       Net Residual Sale Price                         $ 7,709,345
                       PV of Reversion                                 $ 2,374,063
                       Add: NPV of NOI                                 $ 4,400,992
                                                                       -----------
                       PV Total                                        $ 6,775,055



                       Deferred Maintenance                            $         0
                       Add: Excess Land                                $         0
                       Other Adjustments                               $         0
                                                                       -----------
                       Value Indicated By "DCF"                        $ 6,775,055
                                 Rounded                               $ 6,800,000




                                  "DCF" VALUE SENSITIVITY TABLE

                                                          DISCOUNT RATE
                                  --------------------------------------------------------------
          TOTAL VALUE               12.00%       12.25%       12.50%       12.75%       13.00%
---------------------    ----------   ----------   ----------   ----------   ----------
TERMINAL CAP    11.00%   $7,098,202   $6,989,436   $6,882,967   $6,778,738   $6,676,692
 RATE           11.25%   $7,040,534   $6,933,041   $6,827,812   $6,724,793   $6,623,930
                11.50%   $6,985,374   $6,879,097   $6,775,055   $6,673,195   $6,573,461
                11.75%   $6,932,562   $6,827,449   $6,724,543   $6,623,792   $6,525,140
                12.00%   $6,881,949   $6,777,952   $6,676,136   $6,576,447   $6,478,833
AMERICAN APPRAISAL ASSOCIATES, INC. INCOME CAPITALIZATION APPROACH PAGE
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TATES CREEK VILLAGE, LEXINGTON, KENTUCKY

INCOME LOSS DURING LEASE-UP

The subject is currently near or at a stabilized condition. Therefore, there is no income loss during lease-up at the
subject property.

CONCESSIONS

Concessions have historically not been utilized at the subject property or in the subject's market. Therefore, no
adjustment was included for concessions.

DIRECT CAPITALIZATION METHOD

After having projected the income and expenses for the property, the next step in the valuation process is to
capitalize the net income into an estimate of value. The selected overall capitalization rate ("OAR") covers both
return on and return of capital. It is the overall rate of return an investor expects.

After considering the market transactions and the investor surveys, we previously conclude that an overall rate of
10.50% percent is applicable to the subject. The results of our direct capitalization analysis are as follows:
AMERICAN APPRAISAL ASSOCIATES, INC. INCOME CAPITALIZATION APPROACH PAGE
35
TATES CREEK VILLAGE, LEXINGTON, KENTUCKY

                                      TATES CREEK VILLAGE

                                                           TOTAL     PER SQ. FT.   PER UNIT   %OF EGI
                                                           -----     -----------   --------   -------
REVENUE
          Base Rent                                    $1,562,400    $    8.02     $ 7,659

          Less: Vacancy & Collection Loss     10.00%   $   156,240   $    0.80     $   766

          Plus: Other Income
            Laundry Income                             $    2,040    $    0.01     $    10     0.14%
            Garage Revenue                             $        0    $    0.00     $     0     0.00%
            Other Misc. Revenue                        $   53,040    $    0.27     $   260     3.63%
                                                       ----------    ---------     -------     ----
              Subtotal Other Income                    $   55,080    $    0.28     $   270     3.77%

EFFECTIVE GROSS INCOME                                 $1,461,240    $    7.50     $ 7,163

OPERATING EXPENSES:

          Taxes                                        $    61,200   $    0.31     $   300     4.19%
          Insurance                                    $    30,600   $    0.16     $   150     2.09%
          Utilities                                    $   285,600   $    1.47     $ 1,400    19.55%
          Repair & Maintenance                         $   112,200   $    0.58     $   550     7.68%
          Cleaning                                     $    15,300   $    0.08     $    75     1.05%
          Landscaping                                  $         0   $    0.00     $     0     0.00%
          Security                                     $         0   $    0.00     $     0     0.00%
          Marketing & Leasing                          $    16,320   $    0.08     $    80     1.12%
          General Administrative                       $   132,600   $    0.68     $   650     9.07%
          Management                          5.00%    $    73,062   $    0.37     $   358     5.00%
          Miscellaneous                                $         0   $    0.00     $     0     0.00%

TOTAL OPERATING EXPENSES                               $   726,882   $    3.73     $ 3,563    49.74%

          Reserves                                     $   61,200    $    0.31     $   300     4.19%
                                                       ----------    ---------     -------    -----
NET OPERATING INCOME                                   $ 673,158     $    3.45     $ 3,300    46.07%
                                                       ==========    =========     =======    =====
          "GOING IN" CAPITALIZATION RATE                    10.50%

          VALUE INDICATION                             $6,411,029    $   32.89     $31,427

          "AS IS" VALUE INDICATION
           (DIRECT CAPITALIZATION APPROACH)            $6,411,029

                         ROUNDED                       $6,400,000    $   32.84     $31,373
AMERICAN APPRAISAL ASSOCIATES, INC. INCOME CAPITALIZATION APPROACH PAGE
36
TATES CREEK VILLAGE, LEXINGTON, KENTUCKY

                      DIRECT CAPITALIZATION VALUE SENSITIVITY TABLE

             CAP RATE            VALUE                ROUNDED              $/UNIT             $/SF
             --------            -----                -------              ------             ----
              9.75%            $6,904,185           $6,900,000            $33,824            $35.40
             10.00%            $6,731,580           $6,700,000            $32,843            $34.37
             10.25%            $6,567,395           $6,600,000            $32,353            $33.86
             10.50%            $6,411,029           $6,400,000            $31,373            $32.84
             10.75%            $6,261,935           $6,300,000            $30,882            $32.32
             11.00%            $6,119,618           $6,100,000            $29,902            $31.30
             11.25%            $5,983,627           $6,000,000            $29,412            $30.78




CONCLUSION BY THE DIRECT CAPITALIZATION METHOD

Applying the capitalization rate to our estimated NOI results in an estimated value of $6,400,000.

CORRELATION AND CONCLUSION BY THE INCOME APPROACH

The two methods used to estimate the market value of the subject property by the income approach resulted in
the following indications of value:

                 Discounted Cash Flow Analysis                                       $6,800,000
                 Direct Capitalization Method                                        $6,400,000




Giving consideration to the indicated values provided by both techniques, we have concluded the estimated value
by the income capitalization approach to be $6,500,000.
AMERICAN APPRAISAL ASSOCIATES, INC. RECONCILIATION AND CONCLUSION PAGE
37
TATES CREEK VILLAGE, LEXINGTON, KENTUCKY

                                 RECONCILIATION AND CONCLUSION

This appraisal was made to express an opinion as of the Market Value of the fee simple estate in the property.

AS IS MARKET VALUE OF THE FEE SIMPLE ESTATE

                Cost Approach                                                        Not Utilized
                Sales Comparison Approach                                             $6,500,000
                Income Approach                                                       $6,500,000
                Reconciled Value                                                      $6,500,000




The Income Capitalization Method is considered a reliable indicator of value. Income and expenses were
estimated and projected based on historical operating statements and market oriented expenses. This method is
primarily used by investors in their underwriting analysis. Furthermore, there was good support for an overall rate
in the Direct Capitalization Method.

The Sales Comparison Approach to value supported the value conclusion by the Income Approach and was
given secondary consideration. Investment-grade, income-producing properties such as the subject are not
typically traded based on cost. Therefore, the Cost Approach has not been considered in our valuation.

FINAL VALUE - FEE SIMPLE ESTATE

Based on the investigation and premise outlined, it is our opinion that as of November 19, 2003 the market value
of the fee simple estate in the property is:

$6,500,000
AMERICAN APPRAISAL ASSOCIATES, INC. ADDENDA
TATES CREEK VILLAGE, LEXINGTON, KENTUCKY

                               ADDENDA
AMERICAN APPRAISAL ASSOCIATES, INC. EXHIBIT A
TATES CREEK VILLAGE, LEXINGTON, KENTUCKY

                                EXHIBIT A
                          SUBJECT PHOTOGRAPHS
AMERICAN APPRAISAL ASSOCIATES, INC.                                  EXHIBIT A
TATES CREEK VILLAGE, LEXINGTON, KENTUCKY

                                SUBJECT PHOTOGRAPHS

        [PICTURE]                                            [PICTURE]

        EXTERIOR                                       EXTERIOR - LANDSCAPE

        [PICTURE]                                            [PICTURE]

EXTERIOR - APARTMENT BUILDING                         INTERIOR - APARTMENT UNIT

        [PICTURE]                                            [PICTURE]

  EXTERIOR - TENNIS COURT                             EXTERIOR - ENTRANCE GATE
AMERICAN APPRAISAL ASSOCIATES, INC.                              EXHIBIT A
TATES CREEK VILLAGE, LEXINGTON, KENTUCKY

                              SUBJECT PHOTOGRAPHS

        [PICTURE]                                        [PICTURE]

EXTERIOR - VOLLEYBALL COURT                          EXTERIOR - FACADE

        [PICTURE]                                        [PICTURE]

   EXTERIOR - ACCESS                                INTERIOR - ACCESS

        [PICTURE]                                        [PICTURE]

    EXTERIOR - POOL                                 EXTERIOR - CLUB HOUSE
AMERICAN APPRAISAL ASSOCIATES, INC. EXHIBIT B
TATES CREEK VILLAGE, LEXINGTON, KENTUCKY

                              EXHIBIT B
                     SUMMARY OF RENT COMPARABLES
                    AND PHOTOGRAPH OF COMPARABLES
AMERICAN APPRAISAL ASSOCIATES, INC. EXHIBIT B
TATES CREEK VILLAGE, LEXINGTON, KENTUCKY

               PHOTOGRAPHS OF COMPARABLE SALE PROPERTIES

           COMPARABLE I-1            COMPARABLE I-2             COMPARABLE I-3

         BRECKINRIDGE COURT     CHINOE CREEK APARTMENTS      CLOISTERS APARTMENTS
        420-430 Redding Road   3520-3558 Creekwood Drive   3501-3550 Pimilco Parkway
           Lexington, KY            Lexington, KY              Lexington, KY

            [PICTURE]                  [PICTURE]                 [PICTURE]

           COMPARABLE I-4            COMPARABLE I-5

           PATCHEN PLACE          OLD FARM APARTMENTS
         200 Patchen Drive          3751 Appian Way
           Lexington, KY             Lexington, KY

            [PICTURE]                 [PICTURE]
AMERICAN APPRAISAL ASSOCIATES, INC. EXHIBIT B
TATES CREEK VILLAGE, LEXINGTON, KENTUCKY

SUMMARY OF COMPARABLE RENTAL PROPERTIES

                                                                                                               COMPA
          DESCRIPTION                               SUBJECT                                                      R -
          -----------                               -------                                                      ---
  Property Name                 Tates Creek Village                                    Breckinridge Court
  Management Company            AIMCO
LOCATION:
  Address                       3051 Kirklevington Drive                               420-420 Redding Road
  City, State                   Lexington, Kentucky                                    Lexington, KY
  County                        Lexington-Fayette                                      Fayette-Lexington
  Proximity to Subject                                                                 1-mile south of the subje
PHYSICAL CHARACTERISTICS:
  Net Rentable Area (SF)        194,910                                                268,650
  Year Built                    1970                                                   1987
  Effective Age                 30                                                     16
  Building Structure Type       Brick & wood siding walls; asphalt shingle roof        Brick & wood siding walls
  Parking Type (Gr., Cov., etc) Garage, Open Covered                                   Open, Covered
  Number of Units               204                                                    382
  Unit Mix:                             Type                Unit  Qty. Mo. Rent            Type           Unit
                                 1 1Br/1Ba - A                640  32    $519          1 1Br/1Ba            708
                                 2 1Br/1Ba - B                720  45    $539          6 2Br/1.5Ba        1,080
                                 3 1Br/1Ba - w/ Large         720   7    $519
                                 4 1Br/1Ba - w/o Large        720   1    $539
                                 5 1Br/1Ba - B                720  31    $559
                                 6 2Br/1.5 - C              1,200  31    $729
                                 7 3 Br/1.5 Ba -D           1,250  31    $749
                                 8 3 Br/2.5 Ba -E           1,500   6    $919
                                 9 3 Br/2.5 Ba -F           1,550  18    $949
                                10 1Br/1Ba - Efficiency       550   2    $449

  Average Unit Size (SF)        955                                                    840
  Unit Breakdown:                Efficiency           0%         2-Bedroom       39%     Efficiency       0%
                                 1-Bedroom           61%         3-Bedroom        0%     1-Bedroom       36%
CONDITION:                      Good                                                   Good
APPEAL:                         Average                                                Good
AMENITIES:
  Unit Amenities                      Attach. Garage           Vaulted Ceiling               Attach. Garage
                                      Balcony              X   W/D Connect.                  Balcony               X
                                      Fireplace                Other                     X   Fireplace
                                      Cable TV Ready                                     X   Cable TV Ready
  Project Amenities               X   Swimming Pool                                      X   Swimming Pool
                                      Spa/Jacuzzi              Car Wash                      Spa/Jacuzzi
                                      Basketball Court         BBQ Equipment             X   Basketball Court
                                      Volleyball Court         Theater Room              X   Volleyball Court
                                  X   Sand Volley Ball     X   Meeting Hall              X   Sand Volley Ball      X
                                  X   Tennis Court             Secured Parking           X   Tennis Court
                                      Racquet Ball         X   Laundry Room                  Racquet Ball          X
                                      Jogging Track            Business Office               Jogging Track         X
                                  X   Gym Room                                           X   Gym Room
                                  X    Tanning Room                                           Tanning Room
OCCUPANCY:                      89%                                                    91%
LEASING DATA:
  Available Leasing Terms       6 to 15 Months                                         6 to 15 Months
  Concessions                   2 Months                                               2 Months
  Pet Deposit                   $150 to $300                                           $150 to $300
  Utilities Paid by Tenant:       X Electric            X Natural Gas                    X Electric            X
                                  X Water                  Trash                         X Water
  Confirmation                  Michelle Harvey/Property Manager                       Joseph Beard (Property Ma
  Telephone Number              859 272 3481                                           877 256 1850
NOTES:                                                                                 None
COMPARISON TO SUBJECT:                                                                 Superior

                                                     COMPARABLE                                            COMPA
          DESCRIPTION                                  R - 2                                                  R -
          -----------                                  -----                                                  ---
  Property Name                 Chinoe Creek                                           Sonnet Cove Apartments
  Management Company                                                                   Worthing Southeast Corpor
LOCATION:
  Address                       3520-3558 Creekwood Drive                              475-531 Lake Toer Drive
  City, State                   Lexington, KY                                          Lexington, KY
  County                        Fayette-Lexington                                      Fayette-Lexington
  Proximity to Subject          2-miles northeast of subject                           3 miles northeast of the
PHYSICAL CHARACTERISTICS:
  Net Rentable Area (SF)        297,810                                         336,508
  Year Built                    1983                                            1972
  Effective Age                 20                                              31
  Building Structure Type       Brick & wood siding walls; asphalt shingle roof Brick & wood siding walls
  Parking Type (Gr., Cov., etc) Open, Covered                                   Open, Covered
  Number of Units               356                                             332
  Unit Mix:                         Type          Unit        Qty.     Mo.          Type           Unit
                                1 1Br/1Ba           676       180     $559      1 1 Br/1 Ba          650
                                3 2Br/1Ba         1,000       176     $629      6 2Br/1.5 Ba       1,050
                                                                                7 2Br/2Ba          1,200
                                                                                8 3Br/2Ba          1,400

  Average Unit Size (SF)        836                                                1,033
  Unit Breakdown:                 Efficiency       0%        2-Bedroom       49%     Efficiency       0%
                                  1-Bedroom       51%        3-Bedroom        0%     1-Bedroom       29%
CONDITION:                      Good                                               Average
APPEAL:                         Good                                               Average
AMENITIES:
  Unit Amenities                      Attach. Garage         Vaulted Ceiling             Attach. Garage
                                      Balcony            X   W/D Connect.                Balcony               X
                                  X   Fireplace              Other                   X   Fireplace
                                  X   Cable TV Ready                                 X   Cable TV Ready
  Project Amenities               X   Swimming Pool                                  X   Swimming Pool
                                      Spa/Jacuzzi            Car Wash                    Spa/Jacuzzi
                                  X   Basketball Court       BBQ Equipment           X   Basketball Court
                                      Volleyball Court       Theater Room                Volleyball Court
                                  X   Sand Volley Ball   X   Meeting Hall            X   Sand Volley Ball      X
                                  X   Tennis Court           Secured Parking         X   Tennis Court
                                      Racquet Ball       X   Laundry Room                Racquet Ball          X
                                      Jogging Track      X   Business Office             Jogging Track         X
                                  X   Gym Room                                       X   Gym Room
                                       Tanning Room                                       Tanning Room
OCCUPANCY:                      93%                                                90%
LEASING DATA:
  Available Leasing Terms       6 to 15 Months                                     6 to 15 Months
  Concessions                   3 Months                                           Payout Lease
  Pet Deposit                   $150 to $300                                       $150 to $300
  Utilities Paid by Tenant:       X Electric            X Natural Gas                X Electric            X
                                  X Water                  Trash                     X Water
  Confirmation                  Joseph Beard (Property Manager)                    May 1, 2003; Joseph Beard
  Telephone Number              877 261 8386                                       877 261 8392
NOTES:                          None                                               None
COMPARISON TO SUBJECT:          Superior                                           Similar

                                                   COMPARABLE                                              COMPA
          DESCRIPTION                                R - 4                                                   R -
          -----------                                -----                                                   ---
  Property Name                 Patchen Place                                      Old Farm Apartments
  Management Company
LOCATION:
  Address                       200 Patcehn Drive                                  3751 Appian Way
  City, State                   Lexington, KY                                      Lexington, KY
  County                        Fayette-Lexington                                  Fayette-Lexington
  Proximity to Subject          3 miles northeast of subject                       1 mile south of subject
PHYSICAL CHARACTERISTICS:
  Net Rentable Area (SF)        166,080                                            281,244
  Year Built                    1973                                               1985
  Effective Age                 30                                                 18
  Building Structure Type       Brick & wood siding walls; asphalt shingle roof    Brick & wood siding walls
  Parking Type (Gr., Cov., etc) Open, Covered                                      Open, Covered
  Number of Units               202                                                330
  Unit Mix:                          Type         Unit        Qty.      Mo.            Type          Unit
                                1 1 Br/1 Ba         656        88      $499        1 1 Br/1 Ba       635
                                2 2Br/2Ba           919        94      $599        3 2Br/2Ba         759
                                6 3Br/2Ba         1,100        20      $689

  Average Unit Size (SF)        822                                                705
  Unit Breakdown:                 Efficiency       0%        2-Bedroom       46%     Efficiency      0%
                                  1-Bedroom       43%        3-Bedroom       11%     1-Bedroom      43%
CONDITION:                      Good                                               Good
APPEAL:                         Good                                               Good
AMENITIES:
  Unit Amenities                      Attach. Garage         Vaulted Ceiling             Attach. Garage        X
                                      Balcony            X   W/D Connect.                Balcony               X
                                  X   Fireplace              Other                   X   Fireplace
                                  X   Cable TV Ready                                 X   Cable TV Ready
  Project Amenities               X   Swimming Pool                                  X   Swimming Pool
                                      Spa/Jacuzzi            Car Wash                    Spa/Jacuzzi
                                  X   Basketball Court       BBQ Equipment           X   Basketball Court
                                      Volleyball Court       Theater Room                Volleyball Court
                                X   Sand Volley Ball   X   Meeting Hall        X   Sand Volley Ball   X
                                X   Tennis Court           Secured Parking     X   Tennis Court
                                    Racquet Ball       X   Laundry Room            Racquet Ball       X
                                    Jogging Track      X   Business Office         Jogging Track      X
                                X   Gym Room                                   X   Gym Room
                                     Tanning Room                                   Tanning Room
OCCUPANCY:                    93%                                            91%
LEASING DATA:
  Available Leasing Terms     6 to 15 Months                                 6 to 15 Months
  Concessions                 2 Months                                       2 Months
  Pet Deposit                 $150 to $300                                   $150 to $300
  Utilities Paid by Tenant:     X Electric            X Natural Gas            X Electric            X
                                X Water                  Trash                 X Water
  Confirmation                May 1, 2003; Joseph Beard (Property Manager)   May 1, 2003; Joseph Beard
  Telephone Number            888 386 9390                                   877 261 8381
NOTES:                        None                                           None
COMPARISON TO SUBJECT:        Superior                                       Superior
AMERICAN APPRAISAL ASSOCIATES, INC. EXHIBIT B
TATES CREEK VILLAGE, LEXINGTON, KENTUCKY

               PHOTOGRAPHS OF COMPARABLE RENT PROPERTIES

         COMPARABLE R-1            COMPARABLE R-2              COMPARABLE R-3

        BRECKINRIDGE COURT          CHINOE CREEK           SONNET COVE APARTMENTS
       420-420 Redding Road   3520-3558 Creekwood Drive   475-531 Lake Toer Drive
          Lexington, KY            Lexington, KY               Lexington, KY

          [PICTURE]                  [PICTURE]                  [PICTURE]

         COMPARABLE R-4            COMPARABLE R-5

          PATCHEN PLACE         OLD FARM APARTMENTS
        200 Patcehn Drive         3751 Appian Way
         Lexington, KY             Lexington, KY

          [PICTURE]                 [PICTURE]
AMERICAN APPRAISAL ASSOCIATES, INC. EXHIBIT C
TATES CREEK VILLAGE, LEXINGTON, KENTUCKY

                               EXHIBIT C
                  ASSUMPTIONS AND LIMITING CONDITIONS

                                 (3 PAGES)
AMERICAN APPRAISAL ASSOCIATES, INC. EXHIBIT C
TATES CREEK VILLAGE, LEXINGTON, KENTUCKY

No responsibility is assumed for matters legal in nature. No investigation has been made of the title to or any
liabilities against the property appraised. In this appraisal, it is presumed that, unless otherwise noted, the owner's
claim is valid, the property rights are good and marketable, and there are no encumbrances which cannot be
cleared through normal processes.

To the best of our knowledge, all data set forth in this report are true and accurate. Although gathered from
reliable sources, no guarantee is made nor liability assumed for the accuracy of any data, opinions, or estimates
identified as being furnished by others which have been used in formulating this analysis.

Land areas and descriptions used in this appraisal were obtained from public records and have not been verified
by legal counsel or a licensed surveyor.

No soil analysis or geological studies were ordered or made in conjunction with this report, nor were any water,
oil, gas, or other subsurface mineral and use rights or conditions investigated.

Substances such as asbestos, urea-formaldehyde foam insulation, other chemicals, toxic wastes, or other
potentially hazardous materials could, if present, adversely affect the value of the property. Unless otherwise
stated in this report, the existence of hazardous substance, which may or may not be present on or in the
property, was not considered by the appraiser in the development of the conclusion of value. The stated value
estimate is predicated on the assumption that there is no material on or in the property that would cause such a
loss in value. No responsibility is assumed for any such conditions, and the client has been advised that the
appraiser is not qualified to detect such substances, quantify the impact on values, or develop the remedial cost.

No environmental impact study has been ordered or made. Full compliance with applicable federal, state, and
local environmental regulations and laws is assumed unless otherwise stated, defined, and considered in the
report. It is also assumed that all required licenses, consents, or other legislative or administrative authority from
any local, state, or national government or private entity organization either have been or can be obtained or
renewed for any use which the report covers.
AMERICAN APPRAISAL ASSOCIATES, INC. EXHIBIT C
TATES CREEK VILLAGE, LEXINGTON, KENTUCKY

It is assumed that all applicable zoning and use regulations and restrictions have been complied with unless a
nonconformity has been stated, defined, and considered in the appraisal report. Further, it is assumed that the
utilization of the land and improvements is within the boundaries of the property described and that no
encroachment or trespass exists unless noted in the report.

The Americans with Disabilities Act ("ADA") became effective January 26, 1992. We have not made a specific
compliance survey and analysis of this property to determine whether or not it is in conformity with the various
detailed requirements of the ADA. It is possible that a compliance survey of the property together with a detailed
analysis of the requirements of the ADA could reveal that the property is not in compliance with one or more of
the requirements of the act. If so, this fact could have a negative effect on the value of the property. Since we
have no direct evidence relating to this issue, we did not consider the possible noncompliance with the
requirements of ADA in estimating the value of the property.

We have made a physical inspection of the property and noted visible physical defects, if any, in our report. This
inspection was made by individuals generally familiar with real estate and building construction. However, these
individuals are not architectural or structural engineers who would have detailed knowledge of building design and
structural integrity. Accordingly, we do not opine on, nor are we responsible for, the structural integrity of the
property including its conformity to specific governmental code requirements, such as fire, building and safety,
earthquake, and occupancy, or any physical defects which were not readily apparent to the appraiser during the
inspection.

The value or values presented in this report are based upon the premises outlined herein and are valid only for the
purpose or purposes stated.

The date of value to which the conclusions and opinions expressed apply is set forth in this report. The value
opinion herein rendered is based on the status of the national business economy and the purchasing power of the
U.S. dollar as of that date.

Testimony or attendance in court or at any other hearing is not required by reason of this appraisal unless
arrangements are previously made within a reasonable time in advance for
AMERICAN APPRAISAL ASSOCIATES, INC. EXHIBIT C
TATES CREEK VILLAGE, LEXINGTON, KENTUCKY

such testimony, and then such testimony shall be at American Appraisal Associates, Inc.'s, prevailing per diem for
the individuals involved.

Possession of this report or any copy thereof does not carry with it the right of publication. No portion of this
report (especially any conclusion to use, the identity of the appraiser or the firm with which the appraiser is
connected, or any reference to the Appraisal Institute or the designations awarded by this organization) shall be
disseminated to the public through prospectus, advertising, public relations, news, or any other means of
communication without the written consent and approval of American Appraisal Associates, Inc.
AMERICAN APPRAISAL ASSOCIATES, INC. EXHIBIT D
TATES CREEK VILLAGE, LEXINGTON, KENTUCKY

                                 EXHIBIT D
                         CERTIFICATE OF APPRAISER

                                 (1 PAGE)
AMERICAN APPRAISAL ASSOCIATES, INC. EXHIBIT D
TATES CREEK VILLAGE, LEXINGTON, KENTUCKY

                                        CERTIFICATE OF APPRAISER

I certify that, to the best of my knowledge and belief:

The statements of fact contained in this report are true and correct.

The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting
conditions, and represent the unbiased professional analyses, opinions, and conclusions of American Appraisal
Associates, Inc.

American Appraisal Associates, Inc. and I personally, have no present or prospective interest in the property that
is the subject of this report and have no personal interest or bias with respect to the parties involved.

Compensation for American Appraisal Associates, Inc. is not contingent on an action or event resulting from the
analyses, opinions, or conclusions in, or the use of, this report.

The analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with
the requirements of the Uniform Standards of Professional Appraisal Practice and the Code of Professional
Ethics and the Standards of Professional Practice of the Appraisal Institute.

The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly
authorized representatives.

I personally did not inspect the subject property. Daniel Salcedo provided significant real property appraisal
assistance in the preparation of this report.

I am currently in compliance with the Appraisal Institute's continuing education requirements.

                                  /s/ Jeff W. Briggs
                                  -----------------------------------------
                                              Jeff Briggs, MAI
                                   Engagement Director, Real Estate Group
                                  Commonwealth of Kentucky State Certified
                                   General Real Property Appraiser #002611
AMERICAN APPRAISAL ASSOCIATES, INC. EXHIBIT E
TATES CREEK VILLAGE, LEXINGTON, KENTUCKY

                                EXHIBIT E
                       QUALIFICATIONS OF APPRAISER

                                 (2 PAGES)
AMERICAN APPRAISAL ASSOCIATES, INC. EXHIBIT E
TATES CREEK VILLAGE, LEXINGTON, KENTUCKY

                             JEFF W. BRIGGS, MAI

                   ENGAGEMENT DIRECTOR, REAL ESTATE GROUP

      POSITION              Jeff W. Briggs is an engagement director for the
                            Dallas Real Estate Group of American Appraisal
                            Associates, Inc. ("AAA").

      EXPERIENCE

       Valuation            Mr. Briggs' valuation experience includes all types
                            of industrial property, Class A office buildings,
                            regional malls, neighborhood and community shopping
                            centers, apartments, hotels, and both daily fee and
                            private golf facilities. He has appraised the vacant
                            land of farms and ranches, single-family residential
                            subdivisions, commercial subdivisions, commercial
                            urban properties, and conservation easements.
                            Special-purpose property valuations he has performed
                            include a large pork production facility, cemeteries,
                            nursing homes, and outpatient surgical clinics.
                            Purchase price allocation assignments included
                            valuation of the land components of a professional
                            sports stadium and a pork production facility. Mr.
                            Briggs has completed assignments in over 30 states
                            throughout the country.

       Court                Mr. Briggs has testified as an expert witness in
                            federal bankruptcy court concerning an apartment
                            complex in Odessa, Texas; given deposition on an
                            appraisal of an industrial building in Sydney, Ohio;
                            and assisted in condemnation assignments for the
                            Texas Highway Department.

       Business             Mr. Briggs joined AAA in 2000. Prior to joining AAA,
                            he was a manager in the Dallas office of Arthur
                            Andersen LLP from 1996 to 1999. Previously, Mr.
                            Briggs had served as a senior appraiser for Wilson K.
                            Mason Company and Integrated Evaluation, both Dallas
                            real estate appraisal companies, and had been
                            employed by Harvey Cornwell and Associates, also a
                            Dallas-based real estate valuation firm.

      EDUCATION             University of North Texas

                             Bachelor of Business Administration - Real Estate
         AMERICAN APPRAISAL ASSOCIATES, INC.                                         EXHIBIT E
         TATES CREEK VILLAGE, LEXINGTON, KENTUCKY

         PROFESSIONAL                   Appraisal Institute, MAI Designated Member
          AFFILIATIONS

         STATE CERTIFICATIONS           State of Arizona, Certified General
                                        Real Estate Appraiser, #31114




State of Arkansas, State Certified General Appraiser,
#CG1588N

                                 State of Indiana, Certified General Appraiser,
                                                #CG40200493

                             Commonwealth of Kentucky, Certified General Real
                                    Property Appraiser, #002611

                                State of Michigan, Certified General Appraiser,
                                                #1201068301

                              State of Minnesota, Certified General Real Property
                                          Appraiser, #AP-20280553

                               State of Mississippi, State Certified General Real
                                         Estate Appraiser, #GA-625

                               State of Nebraska, Certified General Real Estate
                                          Appraiser, #CG230072R

                              State of Oregon, State Certified General Appraiser,
                                                  #C000713

                               Commonwealth of Pennsylvania, Certified General
                                        Appraiser, #GA001870

                               State of Tennessee, Certified General Real Estate
                                            Appraiser, #00003246

                              State of Texas, State Certified General Real Estate
                                         Appraiser, #TX-1321403-G

                              State of Washington, Certified General Real Estate
                                           Appraiser, #1101000
AMERICAN APPRAISAL ASSOCIATES, INC.
TATES CREEK VILLAGE, LEXINGTON, KENTUCKY

                      GENERAL SERVICE CONDITIONS
AMERICAN APPRAISAL ASSOCIATES, INC.
TATES CREEK VILLAGE, LEXINGTON, KENTUCKY

                                    GENERAL SERVICE CONDITIONS

The services(s) provided by AAA will be performed in accordance with professional appraisal standards. Our
compensation is not contingent in any way upon our conclusions of value. We assume, without independent
verification, the accuracy of all data provided to us. We will act as an independent contractor and reserve the
right to use subcontractors. All files, workpapers or documents developed by us during the course of the
engagement will be our property. We will retain this data for at least five years.

Our report is to be used only for the specific purpose stated herein; and any other use is invalid. No reliance may
be made by any third party without our prior written consent. You may show our report in its entirety to those
third parties who need to review the information contained herein. No one should rely on our report as a
substitute for their own due diligence. We understand that our reports will be described in public tender offer
documents distributed to limited partners. We reserve the right to review the public tender offer documents prior
to their issuance to confirm that disclosures of facts from the current appraisals are accurate. No reference to our
name or our report, in whole or in part, in any other SEC filing or private placement memorandum you prepare
and/or distribute to third parties may be made without our prior written consent.

The Tender Offer Partnerships, as that term is defined in the Settlement Agreement, agree to indemnify and hold
us harmless against and from any and all losses, claims, actions, damages, expenses or liabilities, including
reasonable attorneys' fees, to which we may become subject in connection with this engagement except where
such losses, claims, actions, damages, expenses or liabilities, including reasonable attorney's fees, arise or result
from AAA's misconduct, bad faith or negligence. Co-Clients will not be liable for any of our acts or omissions.

AAA is an equal opportunity employer.

								
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