200 South Veitch Street, Arlington, VA 22204

THE OPPORTUNITY

Penrose Court is a well-located, 16-unit garden-style multifamily community situated at 200-204 S. Veitch Street in the highly desirable Penrose neighborhood of Arlington, Virginia. The property is comprised entirely of one-bedroom residences averaging 425 square feet, offering a lean, low-maintenance operating profile that provides a solid foundation for durable cash flow and long-term rental growth. Positioned immediately adjacent to Fort Myer, the storied U.S. Army installation bordering Arlington National Cemetery, Penrose Court benefits from a quiet, secure residential setting that is a rarity in the close-in Arlington submarket, while maintaining convenient access to major employment centers, retail amenities, and regional transportation corridors throughout the Washington, D.C. metropolitan area.

VALUE-ADD POTENTIAL

Penrose Court presents a clear and executable value-add opportunity supported by a meaningful gap between in-place and market rents. One-bedroom units are currently averaging $1,387 against an achievable market rent of $1,650, a delta of $263 per unit representing approximately 19% upside. Even within the existing rent roll, there is demonstrated upside: in-place rents range up to $1,550 across the 16 units, confirming that the submarket supports materially higher rents as units turn over. A measured interior renovation program implemented on natural turnover provides a straightforward and capital-efficient path to close the rent gap and drive incremental NOI. At full

achievable rents of $1,650 per unit, the property's gross rent potential reaches $316,800 annually, representing nearly $51,000 in additional annual revenue versus the current rent roll.

TRANSIT ACCESSIBILITY & CONNECTIVITY

Penrose Court benefits from exceptional multi-modal transit access in one of Arlington's best-served neighborhoods. The property sits within the Columbia Pike corridor, served by multiple high-frequency Metrobus and ART (Arlington Transit) routes providing direct connections to Pentagon City, Crystal City, and

Downtown Washington, D.C. Metrobus Route F44 (Columbia Pike to Pentagon)

and Route 16M (Columbia Pike to National Landing and Crystal City), one of the busiest bus corridors in Northern Virginia with over 1.1 million annual riders, stop along Columbia Pike approximately 0.3 miles from the property. ART Routes 41, 42, and 74 provide additional service connecting residents to Pentagon City Metro Station and the Ballston-Courthouse corridor.

The Pentagon City Metro Station on the Blue and Yellow Lines is approximately 1.7 miles from the property, offering direct connectivity to Amazon's HQ2 at National Landing, Crystal City, the Pentagon, and Downtown D.C. Reagan National Airport is approximately 4.0 miles away and reachable in under 10 minutes by car. According to Arlington County transportation data, more than 35% of residents commute via public transit, biking, or walking, underscoring strong demand for well-connected, transit-accessible housing in the South Arlington submarket.

EMPLOYMENT CENTERS ABOUND

Penrose Court is strategically positioned within close proximity to some of the Washington, D.C. region's most significant public and private sector employment centers. Fort Myer, the active U.S. Army installation directly adjacent to the property, is home to thousands of military and civilian personnel and anchors the immediate neighborhood with a stable, high-quality residential demand base. The Pentagon, one of the largest office buildings in the world employing approximately 23,000 military and civilian workers, is approximately 1.5 miles from the property. Amazon's HQ2 at National

Landing, which is driving the addition of 25,000 high-paying technology jobs to the region, is approximately 1.6 miles away. Reagan National Airport, serving nearly 24 million passengers annually, is approximately 4.0 miles away. The Rosslyn-Ballston corridor, home to a dense concentration of federal agencies, defense contractors, and technology and consulting firms, is approximately 2.0 miles to the north. Northern Virginia is home to approximately 15 Fortune 500-headquartered companies and supports a diversified economic base spanning defense, technology, consulting, and professional services, providing the property with a deep and high-credit- quality tenant pool that supports durable occupancy and long-term rent growth.

FAVORABLE DEMOGRAPHICS

Arlington County boasts one of the most educated and affluent renter profiles in the United States. According to recent U.S. Census Bureau estimates, approximately 77% of residents aged 25 and older hold a bachelor's degree or

higher, significantly above national averages, and the county's median household income is approximately $140,000, nearly twice the national median. Average household income within 3 miles of the property exceeds $179,000,

and the broader submarket is characterized by deep, structural renter demand, with comparable properties in the immediate area averaging approximately 94% occupancy. Arlington's population has grown by roughly 12% since 2010, reflecting sustained housing demand driven by continued job growth in the defense, technology, and professional services sectors. These demographic fundamentals support durable rental demand, elevated renter credit quality, and long-term pricing power in one of the D.C. region's most competitive residential markets.