To participate in The Kelston Apartments, Investors are required to submit their investment request, complete required documentation and fund by 5pm on Friday, November 7, 2025.

As a reminder, allocation is available on a first come, first fund basis. We reserve the right to reject your investment request if documents are not completed properly or funds are not received on time.

For any questions regarding this investment, please schedule a time to speak with our Investor Relations team or email investors@ginkgomail.com.

Click here to view our on-demand webinar on The Kelston Apartments investment opportunity which occurred on Wednesday, October 29th at 1:30 PM EST.

Executive Summary

Ginkgo Residential LLC (“Ginkgo”) is pleased to present an opportunity to invest in The Kelston Apartments (“Kelston”), a 310-unit value-add multifamily community located in Charlotte, NC.

Ginkgo is offering $1.835 million of equity to accredited investors to complete capitalization of the acquisition. The remaining equity will be funded through an investment by two larger partners.

This investment represents a continuation of Ginkgo’s strategy to acquire and reposition underperforming workforce housing communities within our core Carolinas footprint. The subject property is currently experiencing operational distress, primarily due to ownership challenges stemming from limited financial capacity to complete the necessary capital needs, thereby causing significant operational distress.

Ginkgo owns a significant presence in the submarket and brings extensive experience in property repositioning and stabilizing. Notably, in 2023 we acquired and stabilized another asset in the same submarket from this very same owner (See Documents section – Hickory Woods case study).

Investment Overview

With a loan maturing in December 2025, the seller faces increasing pressure to transact. Having successfully acquired a nearby property from this same owner in 2022, Ginkgo’s proven execution and established relationship have positioned us as the preferred buyer to complete this deal.

Total Purchase Price $42,000,000 Total Capitalization $49,850,000 Debt Financing $29,400,000 (59% LTC, 70% LTV) Total Equity $20,450,000 Joint Venture Equity $16,000,000 Ginkgo (Sponsor) Equity $2,865,000 (15% of total Equity) Equity Offered $1,835,000 Projected Hold Period 5 Years Deal Level IRR 18.3% Deal Level Equity Multiple (EM) 2.01x Average Cash-on-Cash Return 6.9% Target Exit Cap Rate 5.50%

Projections are hypothetical and do not guarantee future performance. Actual results may differ materially due to factors such as market conditions, interest rate changes, and property-level performance. Investors should not rely solely on projected returns when making investment decisions.

Business Plan

Kelston offers a strong repositioning opportunity due to operational distress and deferred maintenance under prior ownership. The property is located directly adjacent to the Eastland Yard Redevelopment, a transformational 80-acre public-private project reshaping East Charlotte.

Value Creation Strategy:

1. Reposition Operations: Integrate with Ginkgo’s existing 1,400-unit East Charlotte platform to immediately reduce expenses and normalize collections.
2. Interior Renovations: Execute Ginkgo “Z-Standard” interior upgrades — stainless steel appliances, new cabinets, modern lighting, vinyl plank flooring.
3. Exterior Enhancements: Add fenced patios to ground-floor units and upgrade landscaping and signage.
4. Revenue Growth: Increase rents from $1,219 in-place average to $1,328 (post renovation), in line with comparable Ginkgo assets.
5. Operational Stabilization: Increase occupancy from 85.8% → 94.0% by Year 2.
6. Enhanced access and visibility: Added infrastructure and signage at Central Avenue intersection associated with Eastland Yard, improving connectivity and curb appeal for The Kelston.

Waterfall Structure

In priority order:

1. To the members pari passu until the non-managing members have each received a full return of contributed capital and achieved a 10% IRR.
2. Next, until the non-managing members each achieved a 14% IRR, 16.6% to Ginkgo and the remaining 83.3% to all of the members pari passu.
3. Thereafter, 33.3% to Ginkgo and the remaining 66.6% to all of the members pari passu.

Projected 5-Year Returns (Base Case)

Metric Year 1 Year 2 Year 3 Year 4 Year 5 / Exit Effective Rent / Unit $1,136 $1,294 $1,401 $1,458 $1,502 Occupancy (Physical) 84% 94% 94% 94% 94% Net Operating Income (M) $1.85 $3.00 $3.33 $3.50 $3.61 Annual Distribution 0.6% 7.0% 8.4% 12.4% 6.1% Investor Net IRR (5-Year) 15.7% Investor Net Equity Multiple (EM) 1.85x

Market Overview

Charlotte, NC remains one of the fastest-growing metros in the U.S., driven by in-migration, job creation, and constrained single-family affordability:

• 50% projected population growth by 2050
• 158+ people moving to Charlotte per day
• Average home payment ($2,600/month) vs. Kelston rents ($1,211)
• Strong access to Uptown, University City, and SouthPark employment centers (<25-minute drive)

The adjacent Eastland Yard redevelopment includes:

• 274 new market-rate apartments (delivering November 2025)
• Senior housing units (55+ community)
• 38 new-built for-sale homes
• Public park, sports complex, and new road network connecting directly to Kelston

Comparable Case Study – Hickory Woods

Ginkgo’s acquisition of Hickory Woods (2022), a 202-unit property from the same seller, achieved:

• 44.5% Revenue growth
• 94.5% NOI increase
• +$150/unit rent growth within since acquisition

The Kelston presents an almost identical opportunity with the same ownership, similar vintage, and comparable in-place rents.

Sponsor Overview

Ginkgo Residential is a vertically integrated real estate investment and property management firm headquartered in Charlotte, NC.

With a portfolio of 8,000+ multifamily units valued at $1.3B, Ginkgo specializes in workforce housing with a focus on operational efficiency and long-term capital appreciation.

Ginkgo’s fully integrated structure provides:

• In-house property management and construction oversight
• Deep submarket experience across the Carolinas
• Proven track record of successful acquisitions and value creation

Investment Summary

Offering Size $1,835,000 Minimum Investment $50,000 Investment Type Equity Entity Ginkgo Kelston JV LLC Projected Term 5 Years Distributions Monthly Tax Reporting K-1 annually

Fees

Asset Management $1,200 per month Property Management 3% of collections Construction Management 6% of capital plan Acquisition Fee $525,000 Financing Fee 0.5%

 

Documents

Investor Packet will be available soon.

Comparable Property Rent

Comparable Property Sales

Hickory Woods Case Study