October, 2020

Dear Investors:

SCG is pleased to report the following updates for the completed The Heaven of Athens project:

100 % Leased: As reported in August 2020, 100% of all units have been rented. Additionally, rents are on target at the average monthly rate of  $700 per month per student for the 294 beds available in the 93 units. 

Project Final Costs: Upon completion, the total cost was below budget at approximately $1.7 million. Specifically, the initial budget was $19.5 million, and as of October 2020, $17.8 million has been spent on the project, with some small, additional immaterial expenses to be incurred. We are very pleased with the consistent quality of the overall project, with additional improvements added.

Operating Income and Projected Dividend Distribution: A two month (August and September) profit and loss report shows an income of $ 408,036, or roughly $200,000 per month. Net income reached $349,815, less $297,505 preferred interest to be paid to equity members (LLC XI $6 million equity and developer member $1 million equity), which is $52,310 after the payment of preferred interest to members. LLC XI received, from The Haven at Athens LLC, on September 30th, a preferred dividend of $255,000, equivalent to 8.5% annual of the $6.000.000 capital invested since inception or capitalization date (October 2019). Members will receive dividends payment in January, after a second preferred distribution payment in October, November, and December.