BELLA VISTA TOWNHOMES

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1 $10,850,000 PROPERTY LOCATION: PRICE PER UNIT: PRICE PER SF $61,648 $76.49 # OF UNITS: 176 YEAR BUILT: 1972 RENTABLE SQUARE FT: 141,850 Sq Ft PARKING: CAP RATE: % Extensively Renovated 2008/2009 Townhome Style - 2 story units w/private patios Highly amenitized property, swimming pool, clubhouse, shaded playground, sport court, business center. New kitchen cabinets and appliances including dishwashers Average unit size 806 SF. Attractive assumable FNMA debt in place Upside in renovating 53 remaining units and passive energy upgrades. BOB KAPLAN Office bkaplan@picor.com ALLAN MENDELSBERG Office amendelsberg@picor.com

2 PROPERTY DESCRIPTION Built in 1972 and extensively renovated in 2009, Bella Vista Townhomes consists of 176 units in 9 buildings and totals 141,850 rentable square feet, with an average unit size of 806 on approximately 7.86 Acres. Property amenities include; completely renovated pool and spa, business center, large modern playscape with shade structure, basketball / sportcourt, barbecue areas and three laundry rooms. The property has pitched roofs and stucco siding. Over $1.3 million has been spent on interior and exterior renovations since January of 2009 with renovations including roofs, parking lots, patio walls, paint, playscape, shade structures, pool and spa, office and unit interiors. Interior upgrades to units include complete new kitchen and bathroom countertops and cabinets, new appliances, 8 panel doors, light fixtures, ceiling fans and light fixtures. The unit amenities include one, two and three bedroom units in three floor plans with seventy seven percent of the units being two and three bedroom townhome style two story units. Each unit has a private patio and a locking secure wrought iron screen safety door. Interior amenities include ceiling fans (in dining area and master bedroom), dishwashers, disposals, refrigerators, gas stoves, vertical blinds, walk in closets, and units that have been completely renovated in 2009 and 2010 including new cabinets, appliances and bathrooms. The central boiler chiller system was replaced in The property offers a high quality family oriented lifestyle for residents due to its townhome style two story renovated units with private patios in a property with a high level of amenities and lush mature landscaping. IMAGE

3 LOCATION DESCRIPTION Bella Vista Townhome is located in Central Tucson on East Seneca Street just southeast of the intersection of Grant Road and Country Club Blvd. Grant Road is a major east / west transportation corridor stretching from interstate 10 to the west to the eastern suburbs of Tucson. Nearby retailers and businesses on Grant Road include Tucson Medical Center, Costco, Bed Bath and Beyond, Trader Joes, Albertsons, Pet Smart, Walgreens, and numerous other retailers and businesses. Bella Vista Townhomes is less than three miles Northeast of the University Of Arizona. The property is walking distance to Blenman Elementary school and Doolen Middle school and less than a half mile from Catalina High School Major employers in the area include; The University of Arizona, Tucson Medical Center, University Hospital, Tucson Mall, Tucson Auto Mall, Tucson Unified School District, Pima Community College, and numerous businesses along Grant Road, Speedway Boulevard and other central Tucson businesses. INVESTMENT DISCUSSION Bella Vista offers the investor an opportunity to purchase an extensively renovated, well maintained property which is operating well but still has more upside potential. Renovations concluded in 2009 exceed $1.3 Million and has the property in excellent condition and with amenities and a product which differentiates itself from the submarket. In addition to market upside additional upside can be attained by upgrading the Fifty three of the one hundred seventy six units that have not had interior upgrades. The completion of these upgrades at an approximate cost of $3000 per unit will add $31,800 of annual rental income and NOI and a 5 year payback on investment. Other costs savings and income sources include installing covered parking, installation of passive energy systems and initiating rubs programs. Existing FNMA debt should be assumed with a purchase of the property and a second coterminous loan can be sourced increasing the leverage up to a more traditional debt level in the 70 to 75% debt range. The FNMA lender who holds the debt on the first lien has tentatively approved a second lien at todays attractive market rates.

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5 FLOOR PLANS Two Bedroom One Bedroom

6 FLOOR PLANS Three Bedroom

7 SITE PLAN

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9 RENT COMPS

10 RENT COMPS

11 COMPS

12 AREA MAP