This was the most difficult project in our career, and I’m proud of this story of perseverance and ultimately preservation of capital. In a time where there is much negativity towards Syndications and multifamily, this story hopefully gives hope to the operators out there doing the right thing, giving every bit of smarts and execution to protect capital. This story is a save. I don’t know many other operators that would have been able to pull off what we did and the challenges we faced, how we survived and thrived. Our strength as GP guarantors at Sharpline, our track-record, our relationships with Freddie and Fannie were the key. It’s a testament to Sharpline and the commitment of our team as well as the patience and belief from our investors. I want this post to be a reality check and not considered bragadocious but give homage to the people in Sharpline and the many partners (lenders, vendors, consultants, investors) that helped get this insurmountable project to where it is today. Here we go. 3 years ago we bought this as a heavy value-add post covid. We couldn’t get new roofs that were leaking for 7 months, so this inhibited our reposition to improve the property, which kept some of the bad elements at the community there longer than we wanted. Fire property management company 1 , Fire property management company 2 (proverbial jump out frying pan into the fire, scary). Decided to self-manage project. This was in an early stage of our self-management journey about 2 years ago (we now self-manage 1500+ units). We purchase one half of the project with cash and the other with a bridge loan with floating rate debt (our only floating rate Sharpline has ever done, we didn’t buy a rate cap either, not smart) 4% bridge loan. We begin to execute capex plan successfully (we ripped the mansards off #MansardSlayer). The process of reposition took longer than we liked because of construction delays and bad PM companies, but we ultimately had the safety net of the 24 unit townhouse project that was getting higher occupancy that we purchased with cash as part of the syndication. So we refi’d the 24 unit with a local bank and GPs personally guaranteed the loan as we continued to do projects. This allowed us to free up liquid capital to continue executing to get higher occupancy, but we were still not there yet. We were at 65% overall occupancy on 128 units and the community was improving.

It was the end of August. We spent about 6 months working on a deal. Got it under contract. It looked like a home-run. $18M purchase price. 104 doors. Great submarket in Phoenix. Numbers lined up. We toured the property in person, walked every building.  Everything looked good. But during due diligence, we found out the roofs the seller said were "brand new" weren't.  They were shot. Full replacement needed. That changed everything. We went back to the seller and asked for a credit to cover the cost. They said no.  We tried to make it work, but at the end of the day, it just didn't make sense. Moving forward would've meant putting our investors' capital at risk and hoping we could make up the difference later. That's not how we operate. So we walked away. Was a tough pill to swallow.  We'd spent hundreds of hours on that deal and paid for all the third-party reports.  But it was the right call.  Sometimes protecting capital means walking away from a deal you really wanted. Here's what that experience reminded me of: - Don't fall in love with a deal. Fall in love with your standards. - Due diligence isn't just paperwork. It's how you protect your people. - And when in doubt, choose discipline over emotion. We lost some time and money on that one, but honestly it made us sharper. Our process is tighter, our team's stronger, and our conviction in what we stand for is even clearer. Sometimes the best deals are the ones you don't close.

Kansas City operates as a single economic region, but it functions across two different state systems — each with its own tax structures, incentive tools, and development priorities. When those systems begin pulling in different directions, the effects don’t appear overnight. They show up through where employers commit, where capital flows, and how people reorganize their daily lives. That two-state dynamic is becoming relevant again. Why This Metro Behaves Differently In most cities, relocating a headquarters or major asset means crossing hundreds of miles and rebuilding a workforce. In Kansas City, it can mean crossing a street. That distinction matters. It allows: - Companies to reposition without disrupting their labor pool - Municipalities to compete aggressively without geographic friction - Employees to adapt incrementally rather than uprooting entirely As a result, movement inside this metro tends to be gradual, but durable. We’ve Seen This Before — and We’re Seeing It Again This isn’t hypothetical. Kansas City has already experienced meaningful internal repositioning. One of the most visible examples is Lockton, which committed to relocating its headquarters to the Kansas side. That decision wasn’t about leaving the metro — it was about optimizing within it. More recently, similar conversations are happening around large-scale anchor institutions, not just office users. There have been serious discussions around: - The Kansas City Royals potentially locating a new stadium and surrounding mixed-use development on the Kansas side, including sites tied to the Aspiria campus - The Kansas City Chiefs exploring the possibility of moving from Arrowhead Stadium to the Legends Outlets Kansas City area in Wyandotte County Whether or not every proposal materializes is less important than what these discussions signal. These are not fringe ideas — they are serious evaluations of incentives, infrastructure, and long-term alignment. What Happens When Incentives Start to Matter Again

Storm hit one of our multifamily properties. Most people see damage. We see an opportunity to reset the asset. New siding. Roof repairs. Exterior upgrades. All coordinated through an insurance claim while improving long-term durability and curb appeal. This is what real operators do: • Protect the downside • Improve the asset • Come back stronger than before Multifamily isn’t passive , it's active management, smart decisions, and turning problems into value.

📊 Multifamily Update: The Supply Wave Is Finally Starting to Ease One of the biggest questions investors have been asking the past 18–24 months is: When does the supply pressure let up? We’re now starting to see the first real signs of that shift. According to new CoStar data, the national multifamily market is actively working through the historic wave of deliveries from 2022–2025. While vacancies remain elevated in newly delivered properties, the overhang itself is shrinking as absorption improves and new deliveries slow MultifamilyUnits. Key national takeaways: - Roughly 353,000 recently delivered units still need to lease up to reach equilibrium, but that number is declining MultifamilyUnits. - The drawdown of excess vacant inventory accelerated in Q4, with over 100,000 units absorbed year-to-date MultifamilyUnits. - Demand for higher-quality, stabilized assets remains strong, with properties built 2017–2021 operating below the national vacancy average MultifamilyUnits. - The challenge today is volume timing, not renter demand. In short: the market is digesting supply, not breaking under it. 📍 Kansas City Focus: A Faster Reset Than Most Markets Kansas City is actually ahead of many metros in this cycle. CoStar data shows that KC’s apartment construction pipeline has shrunk to its lowest level in nearly a decade, driven by higher borrowing costs, tighter equity requirements, and slower rent growth KCMultifamily. Kansas City highlights: - Only ~5,300 units currently under construction, representing just 2.9% of total inventory, the lowest level since 2018 KCMultifamily. - This is down sharply from the 2021 peak, when nearly 9,000 units were underway KCMultifamily. - 2026 deliveries are projected at ~2,900 units, the lowest annual total since 2019, aligning new supply much more closely with demand KCMultifamily. - Several submarkets, including parts of Cass County, now have zero units under construction. What this means: - KC is likely to see supply pressure ease sooner than many Sun Belt markets - Stabilized assets should benefit first - Rent growth doesn’t need to surge for fundamentals to improve — simply less competition helps