89 East Apartments is a 240-unit, 1997-vintage garden-style multifamily community located at 7218 S 89th East Ave in the South Tulsa submarket of Tulsa, Oklahoma.

The property sits on approximately 9.4 acres across 10 three-story residential buildings with a centralized leasing office and features an average unit size of 919 square feet. HLC Equity is acquiring the property at a purchase price of $79K - $89K per unit pursuant to various performance hurdles. This pricing represents up to a 50% discount to peak-cycle comparable sales in the submarket.

The investment targets a 17%+ Net LP IRR, a 2.5x+ equity multiple, and 10%+ cash-on-cash returns over a seven-year hold period, with a 6.5%+ Year-1 cap rate. All projected LP returns are net of sponsor fees. These are projections based on underwriting assumptions and are not guaranteed.

The property offers three floor plan types across 240 total units:

• 72 one-bedroom, one-bathroom units, ranging from 50% AMI-restricted to market-rate.
• 144 two-bedroom, two-bathroom units.
• 24 three-bedroom, three-bathroom units.

Of the total, 122 units are market-rate, 94 are restricted at 60% AMI, and 24 are restricted at 50% AMI. Partial rent restrictions expire in January 2038, approximately four years beyond the projected sale date, preserving meaningful upside for future rent growth and exit cap rate positioning.

The offering accommodates LP investors at multiple commitment levels. The deal deck illustrates projected returns at $250,000, $500,000, and $1,000,000 equity investment tiers. Prospective investors should contact HLC Equity's investor relations team at ir@hlcequity.com for minimum investment requirements and to obtain the formal Offering Documents.

Yes. LP investors participate as limited partners and have no day-to-day management responsibilities. HLC Equity serves as the General Partner and handles all acquisition, asset management, capital improvement, leasing oversight, and disposition activities on behalf of investors. This is a passive real estate private equity investment structure.

Yes. HLC Equity accommodates investments through various entity structures including LLCs, LPs, Trusts, and self-directed IRAs. Investors should consult with their legal and tax advisors regarding the most appropriate structure for their individual circumstances and confirm eligibility requirements directly with HLC Equity's investor relations team.

Yes. As an LP investor, you hold a direct ownership interest in the entity that acquires the property. This means you benefit from real estate ownership, including potential cash flow distributions, appreciation, and tax benefits, without the responsibilities of active management. Your economic interest is proportionate to your equity contribution relative to the total LP equity raised.

HLC Equity provides investors with in-depth and frequent communications that offer a clear ongoing picture of property performance. Investors receive regular reporting on financials, occupancy, capital improvements, and overall asset progress. Distributions are structured on a semi-annual basis throughout the seven-year hold period.

No. Projected returns are forward-looking estimates based on underwriting assumptions, not guarantees. HLC Equity's model stress-tests projections by underwriting operating expenses more than 30% above comparable properties in the market, rents approximately 20% below nearby rent comps, and applying a conservative terminal cap rate.

While the return profile is supported by durable cash flow and a strong going-in basis, all real estate investments carry risk. Investors should review the full Offering Documents, including risk factors, before committing capital.

Yes. HLC Equity's investor community includes family offices, wealth management firms, private equity firms, and high-net-worth and ultra-high-net-worth individuals. The firm was founded within a family office and has built its co-investment platform to serve institutional-quality investors seeking thoughtfully structured, high-quality real estate opportunities. For advisor access and white-glove onboarding, contact ir@hlcequity.com.

The capital structure includes the acquisition of 89 East Apartments with an accretive assumable HUD loan and LP equity raised from investors. The assumable loan provides long-duration fixed-rate financing, while LP equity is structured to participate in preferred return, cash flow, and potential upside through the investment waterfall.

Investors should review the formal Offering Documents for the full capital stack, investor rights, sponsor economics, risks, and transaction terms.

The property benefits from an accretive, assumable HUD loan with a 2.26% fixed interest rate, 0.25% Mortgage Insurance Premium, or MIP, approximately 70% loan-to-purchase-price, and approximately 30 years of remaining loan term.

The loan can be paid off early without a prepayment penalty after Year-5 of the investment hold period. This below-market, long-duration fixed-rate debt provides significant downside protection and supports strong cash-on-cash returns from day 1.

Net cash flow is distributed through a three-tier waterfall:

• Tier 1: Provides a 7% preferred return to LP investors.
• Tier 2: Distributes cash above the preferred return 70% to LPs and 30% to the GP.
• Tier 3: Once LP investors achieve a 16% IRR, remaining profits are split 50/50 between LPs and the GP.

Projected LP returns are net of all sponsor fees, including a 1% acquisition fee, 1% disposition fee, 0.25% asset management fee on total equity, and a 10% construction management fee on total CapEx.

The underwriting for 89 East is intentionally conservative across multiple dimensions. Organic market rent growth is modeled at 0% in Year 1 and 3% per annum thereafter, below the actual rent gap, which shows 89 East currently leasing approximately 20% below comparable properties.

Operating expenses are underwritten well above the average of six comparable properties in the local market. Economic vacancy is projected at 10.25% in Year 1, tapering to approximately 7.52% at stabilization, compared to the 6.5% to 7% industry standard for stabilized assets. The terminal cap rate assumption is conservative to stress-test the exit.

The business plan does not rely on aggressive, immediate rent increases. Instead, HLC plans to gradually burn off the current loss-to-lease over the seven-year hold as units turn.

Based on rent comps, 89 East's market-rate one-bedrooms average $147 below comparable properties, two-bedrooms trail by approximately $196, and three-bedrooms are approximately $499 below peers, with similar vintage, condition, and submarket positioning. Interior unit renovations on market-rate units will support incremental rent premiums over time.

Approximately $2.7 million in capital expenditures is budgeted for the investment. Because the property has an institutional chain of ownership, deferred maintenance is limited and the vast majority of CapEx dollars can be directed toward interior unit renovations to command rent premiums on the 122 market-rate units.

This targeted approach allows HLC to drive net rental income growth with a focused spend rather than spreading capital exclusively across building systems or major structural work.

Tulsa is Oklahoma's second-largest city with a population exceeding one million. The metro has meaningfully diversified from its historic oil and gas base, with major employment sectors now spanning healthcare, finance, aviation, telecommunications, and technology.

The Tulsa MSA's unemployment rate stands at 3.3%, outperforming the national average of 4.2%, and the metro's annual GDP is approximately $68 billion. These fundamentals support durable residential demand across the market.