BONSALL BREEZE Del Cielo Este Bonsall, CA $8,200,000

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1 BONSALL BREEZE Del Cielo Este Bonsall, CA $8,200,000 Offered By: WILL CREAGAN Multi-Family Investments LIC # CLARK RORBACH Multi-Family Investments LIC #

2 Executive summary Bonsall Breeze Apartments is located in the quaint rural suburban community of Bonsall. The property offers a garden community in a quiet residential neighborhood with long stretching views overlooking the surrounding valleys and San Luis Rey Downs Horse Training Center. The property unit mix consists of 20 large one bedroom, one bath units with large private yards and 20 large one bedroom units with private balconies. Further, the property offers excellent cash flow at stabilized rental rates. Community Bonsall is a quiet residential town offering a country feel with a short drive to major employment centers. Bonsall is also home the award winning Bonsall Elementary School, an exceptional school with a Niche ranking of 293 of 5,754 in the state of California. Tenants also enjoy the easy access to HWY 76 and Interstate 15 making commuting time throughout the county and surrounding markets a Bonsall Breeze. San Luis Rey Downs Training Center The subject property is located one block to the San Luis Rey Downs training facility; A facility that houses and trains between race horses at any given time. It is the only auxiliary race horse training track that has been continuously approved by the California Horse Racing Board since Additionally, the San Luis Rey Downs, unlike the tracks in the California racing circuit, is open for training all year long allowing trainers, jockeys, and owners the ability to develop a permanent home in the region. One of the biggest drawing features of the facility is that horses can leave the training facility and race in the same day, making it easier for trainers and owners as they would ordinarily have to be at the race tracks 24 hours in advance. The surrounding apartment market enjoys providing rental options for Jockeys, Trainers, and even Owners looking to live within the immediate area surrounding the facility. LIST PRICE: $8,200,000 TOTAL UNITS: 40 PRICE/UNIT: $205,000 PRICE/SF: $277 CURRENT CAP RATE: STABILIZED CAP RATE: *RENOVATED CAP RATE: CURRENT GRM RATE: MARKET GRM RATE: *RENOVATED GRM RATE: 4.1% 4.5% 5.0% APPROX. BLDG. SIZE: 29,600 APPROX. LOT SIZE: 1.51 Acres APN: YEAR BUILT: 1985 *Renovated rents assume $15,000/unit for 39 units and is included in renovated pro forma calculations Large Floorplans Rent Increase Potential Property Highlights Value Add Potential Large Private Yards (19) 2 Car Garages / (27) Open Spaces Pride of Ownership Award Winning Elementary School Views of San Luis Rey Downs Training Center 2 Bonsall Breeze

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4 rent roll Unit Mix UNIT # APPROXIMATE SQUARE FEET CURRENT RENT STABILIZED RENT RENOVATED RENT 1 bed, 1 bath w/private yard $1,060-$1,425 $1,275 & *$1,425 *$1,425 1 bed, 1 bath w/balcony $1,000-$1,175 $1,175 $1,325 Laundry Income $340 $340 $340 Pet Rent $475 $475 $475 RUBS $1,400 $1,400 $1,400 Extra Parking Space 4 $25 $25 $25 Garages 19 $125 $125 $125 Monthly Gross Income $50,365 $53,500 $59,690 Annual Gross Income $604,380 $642,000 $716,280 *Seller recently renovated unit 25 for approximately $13,000 and achieved this rent 4 Bonsall Breeze

5 income & Expense Summary PROPOSED FINANCING % OF VALUE Down Payment 41% $3,362,000 New First Loan 4.20% 30 year 59% $4,838,000 TOTAL $8,200,000 CURRENT RENT STABILIZED RENT RENOVATED RENT ANNUAL GROSS SCHEDULED INCOME $604,380 $716,280 $716,280 Vacancy 4.0% ($24,175) ($28,651) ($28,651) Effective Gross Income $580,205 $687,629 $687,629 ESTIMATED EXPENSES Real Estate Taxes 1.08% $88,298 Charges on RE Taxes $661 Insurance $11,000 Water + Sewer $60 $28,800 Gas & Electricity $42 $20,160 Landscaping $3,600 Trash $6,250 Management 4% $23, $24,653 $27,505 Res Manager $17,850 Maintenance $750/unit $30,000 Replacement Reserves $250/unit $10,000 Admin $3,200 Misc. $500 $6,088 Total Exp/Unit Total Expenses 40% ($243,527) ($244,972) ($247,824) NET OPERATING INCOME $336,678 $371,348 $439,805 CAPITALIZATION RATE 4.1% 4.5% 5.0% PROPOSED FINANCING New First Loan 4.20% $4,838,000 ($283,904) ($283,904) ($283,904) CASH FLOW $52,774 $87,444 $155,901 Cash On Cash Return 1.5% 2.6% 3.9% Bonsall Breeze 5

6 sale comparables PRICE/UNIT PRICE/SQFT CAP RATE GRM BUILT BONSALL BREEZE $205,000 $277 Current: 4.1% Current: Del Cielo Este Bonsall, CA Stabilized: 4.5% Stabilized: 12.8 PRICE: $8,200,000 Renovated: 5.0% Renovated: AVALON GARDENS $189,286 $ % AVALON DR PRICE: $3,975,000 SOLD: 10/20/2017 TOWNSITE TERRACE $191,176 $ % Townsite Dr PRICE: $6,500,000 SOLD: 6/8/2017 VISTA SUNRISE $201,515 $ % Nevada Ave PRICE: $6,650,000 SOLD: 10/27/2017 LAS BRISAS $175,514 $ % NK W California Ave Vista, CA PRICE: $3,685,800 SOLD: 6/6/2017 HILLSIDE TERRACE $193,750 $ % NK Hillside Terrace PRICE: $6,200,000 SOLD: 11/8/2016 HIDDEN VALLEY VILLAS $245,370 $ % NK N Escondido Blvd Escondido, CA PRICE: $6,625,000 SOLD: 12/30/2016 VUE OCEANSIDE $220,588 $ % NK Barnard Dr Oceanside, CA PRICE: $30,000,000 SOLD: 4/25/ Bonsall Breeze

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8 rent comparables UNIT MIX APPROXIMATE SF STABILIZED/ RENOVATED RENT STABILIZED/RENOVATED AVERAGE RENT/SF BONSALL BREEZE 1 bed, 1 bath 720 $1,275/$1,425 $1.77/$ Del Cielo Este 1 bed, 1 bath 720 $1,175/$1,325 $1.63/$1.84 Bonsall, CA UNIT MIX APPROXIMATE SF CURRENT RENT CURRENT RENT/SF 1 SUNSET TERRACE 1 bed, 1 bath 700 $1,190 $ Alturas Rd Fallbrook, CA PACIFIC SUN 1 bed, 1 bath 800 $1,370 $ Taylor St 2 bed, 2 bath 1,000 $1,531 $ LA VALLE VISTA 1 bed, 1 bath 800 $1,175 $ Taylor St 2 bed, 2 bath 900 $1,368 $ PRESIDIO VILLA 1 bed, 1 bath 947 $1,350 $ Taylor Street 5 PINECREST 1 bed, 1 bath 700 $963-$1, W Clemmens Ln 2 bed, 2 bath 900 $1,365-$1, Fallbrook, CA bed, 2 bath 1,100 $1,705-$1, CASA LOMA APARTMENTS 1 bed, 1 bath 630 $1,015 $ Clemmens Ln Fallbrook, CA TOWNE & COUNTRY APTS 2 bed, 1 bath 875 $1,260 $ Ammunition Rd Fallbrook, CA Bonsall Breeze

9 Rent Comparables Bonsall breeze UNIT MIX APPROXIMATE SF STABILIZED/ RENOVATED RENT STABILIZED/RENOVATED AVERAGE RENT/SF SUNSET POINTE 1 bed, 1 bath 800 $1,190 $ Clemmens Ln 2 bed, 1 bath 1,000 $1,450 $1.45 Fallbrook, CA bed, 2 bath 1,000 $1,390 $1.39 Bonsall Breeze 9

10 Property PHotos 10 Bonsall Breeze

11 Property Photos Bonsall Breeze 11

12 Offered By: WILL CREAGAN Multi-Family Investments LIC # CLARK RORBACH Multi-Family Investments LIC #