Progress Update:

The past quarter has been a productive period for Villa Park Apartments, with substantial advancements in both property improvements and operational strategies.

Here are the key developments:

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Rebranding and Property Enhancements:

• Unit Renovations: We've renovated 24 units to date, slightly behind our target of 40. However, the pace has increased recently, with projections to complete an additional 14 by the end of August. This will bring us to 40% renovation completion.

• Leasing Performance: All renovated units are either leased or pre-leased. Rental prices are surpassing proforma rates, illustrating strong market demand and the success of our upgrades.

• Occupancy Rates: We've successfully maintained an occupancy rate of 88%, strategically managing tenant transitions to minimize vacancy and maximize income.

• Operational Improvements: Our transition to accrual-based accounting continues, aiming for more “real-time” financial tracking and reporting.

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Looking Forward:

Our approach remains conservative yet proactive, focusing on gradual enhancements to ensure steady gains in property value and rental income. The balance between maintaining high occupancy and pushing forward with renovations demonstrates our commitment to maximizing investor returns while ensuring stable revenue, and maintaining positive tenant morale.

Our rebranding efforts and the aesthetic improvements to the property are set to enhance tenant attraction and retention. We're continuing to turn more units as we have ramped up our renovation efforts, and are confident in meeting our rent increase targets in the upcoming quarters.