PRESTON VALLEY Apartments

Preston Valley Apartments is a new, 48-unit property in the Okolona section of Louisville. Bluegrass

Multifamily would arrange the acquisition, manage the property and pay investors a fixed rate of

interest of 8% annually, plus 80% of the excess free cash flow from operations at the end of every year.

The expected cash on cash return of the transaction is around 9.2%. In addition, investors receive the

benefits of the depreciation in their own personal taxes. Interests are paid quarterly, and excess cash

flow is distributed once a year as a return of their original capital.