Higley-University Apartments 5233 E UNIVERSITY DRIVE, MESA, AZ

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1 EXECUTIVE SUMMARY OFFERING SUMMARY Offering Price: $1,369,000 Number Of Units: 12 Cap Rate: 6.02% NOI: $82,432 Lot Size: 0.78 Acres Building Size: 8,800 SF Year Built: 1966 Renovated: 2018 PROPERTY HIGHLIGHTS Spacious covered porches & covered parking Classic mid-century design Attractive and well maintained community Located on county island Desert landscaping Individually metered for electricity Steel-frame Storm doors Mix of 1/1 and 2/1 units Most units heavily updated 2018 Zoning: Cross Streets: [C-C] Commercial Community University and Higley Several units still offer value-add opportunity Age Restricted property with SIGNIFICANT rent upside

2 INVESTMENT SUMMARY INCOME & EXPENSES CURRENT $1,369,000 Offering Price $369,630 Down Payment PROFORMA Units Mix Size (sf) Rent Rent/sf Total Rent Total 4 2 br / 1 ba 800 $925 $1.16 $3,700 $975 $3, br / 1 ba 700 $679 $0.97 $5,432 $815 $6, ,800 9,132 10,420 Current Operations Market Rents Gross Monthly Income $9,130 $10,420 Rental Income $109,560 $125,040 Vacancy -$5,478 -$6,252 Gross Operating Income $104,082 $112,536 Less Estimated Expenses -$21,650 -$21,650 Net Operating Income $82,432 $90,886 Estimated Annual Expenses On-site mgr $2,400 $2,400 Repair-Maint $4,800 $4,800 Water-Sewer $6,000 $6,000 Electricity $1,200 $1,200 Property Taxes $4,570 $4,570 Insurance $2,680 $2,680 TOTAL $21,650 $21,650 Per Unit / SF $1,804 / $2.46 $1,804 / $2.46 FINANCING AND INVESTMENT RETURN $999,370 Proposed Loan (4.84%) Projected Cash Flow $90,886 NOI - $63,210 Loan Payments $27,676 Annual Cash Flow Return on Investment $27,676 / $369, % (Cash on Cash) SITE INFORMATION 5233 E University Drive, Mesa, AZ, UNITS: 12 LOT SIZE: BUILDING SIZE: PARCEL: COOLING/HEATING: PARKING: ROOF: CONSTRUCTION: 0.78 AC 8,800 SF BUILT: 1966 UTILITIES: ZONING: LAUNDRY: PROPERTY DESCRIPTION P, Q Individual HVAC systems 1 covered space per unit pitched composition Block construction Individually metered electric [C-C] Commercial Community storage area possible for laundry Part of Dreamland Villas, this 12 unit offering provides a mix of spacious 1-bedroom and 2-bedroom rental units in a low density setting with large front and rear entries and covered porches. Each rental unit is individually metered for electricity and has its own reserved covered parking space. Upgraded electrical service panels have been installed at the property. Seven units have been tastefully updated to include new flooring, re-textured walls and ceilings, new counters, GFCI outlets, tiled shower surrounds and tiled kitchen back splashes, premium appliance packages, and upgraded lighting & plumbing fixtures. While rents are higher for the updated units, they are STILL WAY below market and several units are period correct allowing a new owner good upside in finishing upgrades on these units. Demand is very strong for rentals in this age-restricted (55+) property which adjoins the Velda Rose Estates community surrounded by golf courses and major shopping. The property is on a county island and operating expenses are very low. The enjoy a quiet location along East University in a low-density area of Dreamland Villas. As development along the Higley Corridor continues to bring employers and retail, demand for this premium location continues to increase. The property is minutes away from downtown Mesa, the Red Mountain Freeway and I-60. SALE INFORMATION Current Rents Proforma Rents Offering Price $1,369,000 $1,369,000 Price / Unit $114,083 $114,083 Price / sf $ $ Cap Rate 6.0% 6.64% GRM Directions:

3 RENT ROLL UNIT NUMBER UNIT BED UNIT BATH UNIT SIZE (SF) CURRENT RENT CURRENT RENT (PER SF) MARKET RENT MARKET RENT/SF $925 $1.16 $975 $ $640 $0.91 $815 $ $640 $0.91 $815 $ $640 $0.91 $815 $ $640 $0.91 $815 $ $925 $1.16 $975 $ $925 $1.16 $975 $ $795 $1.14 $815 $ $640 $0.91 $815 $ $640 $0.91 $815 $ $795 $1.14 $815 $ $925 $1.16 $975 $1.22 Totals/Averages 8,800 $9,130 $1.04 $10,420 $1.18

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7 DEMOGRAPHICS MAP & REPORT POPULATION 1 MILE 3 MILES 5 MILES Total population 14, , ,972 Median age Median age (Male) Median age (Female) HOUSEHOLDS & INCOME 1 MILE 3 MILES 5 MILES Total households 7,037 45, ,894 # of persons per HH Average HH income $53,374 $58,034 $67,493 Average house value $80,863 $163,183 $218,422 * Demographic data derived from 2010 US Census

8 LOCATION MAPS