April 2020

Dear Investors:

SCG is pleased to report the progress on The Heaven of Athens site for the close of March 2020. As of March 31st, 2020, construction is going well, despite rainy and issues with COVID-19.

As of the end of March 2020, we are happy to report the following project progress:  

• Footings are completed for 69 out of the 69 units.
• Slab work is completed for 51 out of the 69 units.
• Framing is complete for 49 out of the 69 units.
• The rough-in for the mechanical, electrical, and plumbing has been started for 45 out of the 69 units
• Insulation, 45 out of 69
• Drywall complete, 34 out of 69
• Siding complete, 45 out of 69
• Exterior Paint complete, 30 out of 69
• Sanitary sewer installation is 98% complete for the site
• Storm sewer installation is 90% complete for the site.
• The grading 80% complete for the site.
• Pool Construction, 70% complete
• Interior Paint complete, 5%

Thankfully, the rain has returned to normal precipitation levels. All houses on a grade and all footers have been installed. This is a huge accomplishment and imperative for the completion of the project on time. We expect to have all slabs installed by the end of next week. 

The buyout for the houses is approximately 98% complete. This leaves the project as a whole approximately 80% bought out. 

The houses are about 2 weeks behind schedule. The site work is about 2 months behind schedule. We have about 1 month of flexibility built into the schedule plus we can accelerate certain things to make up the time. Rain is the only reason we are behind schedule at this point. 

Leasing: Picked up and then spring break and the coronavirus showed up. Our hard hat tours were all canceled for a couple of weeks due to people’s fear and a lack of people in town. People are starting to come out again and schedule the hard hat tours but not as many as before.

We have virtual tours for everyone to view remotely and prospects have been excited about those. We encourage you to look at the new content on the website www.thehavenathens.com. Other managers in the industry expect students to start coming back to town soon town.

We are currently approximately 55% leased (units reserved by future tenant with a deposit received).

Cost projection: On budget and remaining aligned with original forecast. 

The budget for conservative purposes is kept at $19.5 million as initially budgeted, but we were able to increase contingency item from $870.760 as initially forecasted to $ 1.344.250

Regarding construction, out of the $ 16.215.184, progress has been made by $ 7.347.012.