The Square at South Overton Apartments

Lubbock, Texas

Upon the sale of the Brownwood, Texas portfolio, we were able to effect a tax-deferred exchange into The Square at Overton, thus avoiding what would have been a huge tax on capital gains for Schrogin/Baar IV Ltd.

The Square consists of 101 apartments across the street from Texas Tech University in Lubbock, Texas.  Our local partners Rebus Capital LLC are young entrepreneurs who are modeling their syndication efforts on how Schrogin/Baar and Schrogin 1 are structured.  They are sharp, conscientious, and straightforward;  we hope they will find even more projects for us in the future.  At this point, The Square is structured to begin with a 7% preferred return to our investors, and number which is becoming increasingly difficult to achieve with any residential real estate in the U.S. We plan to rehabilitate remaining units as they become available, increase income, and then sell.  We are hoping for a prosperous relationship with Rebus LLC at the Square at Overton in Lubbock.