AVOCADO 7 & ALBERT PLACE

Transcription

1 236 Avocado Street & 120 Albert Place Costa Mesa, CA OFFERING MEMORANDUM

2 Table of Contents 01 The Asset Property Description Investment Highlights Points of Interest Maps Property Aerial Location Map Property Photos Valuation Unit Mix Income & Expenses Market Positioning Comparable Rental Properties Comparable Sale Properties Appendix Costa Mesa By The Numbers New Construction Area Demographics The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Kidder Mathews and should not be made available to any other person or entity without the written consent of Kidder Mathews. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Kidder Mathews has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB s or asbestos, the compliance with State and Federal regulations, current or past tax payments, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Kidder Mathews has not verified, and will not verify, any of the information contained herein, nor has Kidder Mathews conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. This information has been secured from sources we believe to be reliable. We make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Recipient of this report must verify the information and bears all risk for any inaccuracies. Exclusively represented by Steven C. Brombal Senior Vice President sbrombal@kiddermathews.com Lic No Joshua Y. Rhee Associate Vice President jrhee@kiddermathews.com Lic No kiddermathews.com

3 The Asset PROPERTY DESCRIPTION First time available as a two-property mini portfolio, this offering of 18 units in the coveted Costa Mesa submarket gives any new owner the flexibility to acquire these buildings together for an exchange upleg with the option to exit individually at different times. It is rare to be able to acquire a bulk number of units in Costa Mesa which boasts an excellent mix of primarily two-bedroom unit floorplans as well as seven townhouse-style units. The (7) units on Avocado Street feature all townhouse-style interiors, fireplaces in the one-bedroom, one-bathroom large loft units, private patios and yards, new exterior paint, along with a new carport roof. The (11) units on Albert Place consist of 91% two-bedroom units all featuring balconies or private patios. This property has (6) double-enclosed garages and (8) covered spaces or 20 off-street parking places. median household income is projected to reach $76,508 by 2021 up 8.4% from The City of Costa Mesa enjoys convenient access to major freeway routes which links it to all of Orange County as well as the greater Los Angeles area and beyond. These freeways include the 55, 405, 22, 91 and Interstate 5 freeways. John Wayne Airport is an important air transportation hub and located just six miles from Costa Mesa. The Newport Mesa Unified School District services all Costa Mesa residents. Based upon comparable rental properties, there is currently a rental lift of approximately 11% attainable awarded to the savvy apartment operator. Costa Mesa s southernmost border is only one mile from the Pacific Ocean and the city is surrounded by Newport Beach, Huntington Beach, Irvine, and Santa Ana. This thriving community is home to upscale shopping at South Coast Plaza which has the highest annual sales volume of any mall in the United States and strong business centers which are factors that continue to draw new residents into the rental pool and the area in general. Orange County is home to five Fortune 500 companies Headquarters in Orange County, including Ingram Micro, Western Digital, Broadcom, Pacific Life, and First American. Costa Mesa s Offering Memorandum Kidder Mathews 3

4 The Asset INVESTMENT HIGHLIGHTS 236 Avocado Street has an attractive unit mix featuring all townhouse style unit interiors. There are (4) spacious one-bedroom, one-bathroom loft-style units which have large kitchens, a fireplace, vaulted ceilings and large private yards. Additionally, there are (3) approximately 1,200 SF two-bedroom, one and a halfbathroom townhouse units situated in a separate building at the rear of the lot. There is a community laundry room and units are separately metered. Each unit has forced air heat. The exterior has been recently repainted, extensive dry rot wood replacement completed, new front entry doors installed and the carport roof has been replaced. The property has a concrete driveway and parking area. There are 7 covered parking spaces and 5 open spaces. It is a pet friendly building however no rental pet premiums are being charged as many buildings in the area are currently collecting pet rent. With rents escalating significantly over the past number of years, current rents are approximately 12% under market levels in comparison to what is being obtained by other properties in the area. There are (6) double-enclosed garages and (8) covered parking spaces. Some unit interiors have wide vinyl plank wood-style flooring. Central water heaters service hot water. The driveway has a new section of asphalt and is scheduled for a new slurry coating. As rents have escalated dramatically over the past seven years, there is an attainable rental upside of approximately 11%. The Albert Place property has a distinctive overall unit mix with 91% twobedroom units and one very large one-bedroom apartment home. Each unit is separately metered for electricity, features electric cooking, and efficient radiant heat. Each unit also has either a nice private enclosed patio or balcony. There is an attractive painted brick veneer building and garage siding at the entrance to the property and resident BBQ area tucked away privately at the back of the lot. INVESTMENT SUMMARY Price $6,420,000 Price per Unit $356,667 Price per SF $ Current Cap Rate 3.57% Market Cap Rate 4.13% Offering Memorandum Kidder Mathews 4

5 The Asset 236 AVOCADO STREET PROPERTY SUMMARY Units 7 Parcel No Year Built PROPERTY SUMMARY Units 11 Parcel No Year Built 1971 Metering Individual gas and electric; Master water Metering Individual gas and electric; Master water Parking 7 covered, 5 open Parking 6 double garages, 8 covered Total NRSF 6,543 SF Total NRSF 9,935 SF Average Unit Size 933 SF Average Unit Size 903 SF Lot Size 15,245 SF Lot Size 16,386 SF Type of Building Frame and stucco Type of Building Frame and stucco HVAC Forced air heat HVAC Radient Hot Water Individual Hot Water Central boiler, solar heaters Roof Pitched composition; Carport structure is flat Roof Pitched composition; Garage structure is flat Exterior Two-story, garden style Exterior Two-story, garden style Offering Memorandum Kidder Mathews 5

6 The Asset POINTS OF INTEREST NEWPORT HARBOR NEWPORT BEACH E 17th St W 17th St E 19th St W 19th St THE TRIANGLE Orange Ave Newport Blvd N Newport Blvd S Harbor Blvd Victoria St ALBERT PLACE AVOCADO 7 Avocado St Albert Pl Offering Memorandum Kidder Mathews 6

7 236 AVOCADO STREET AERIAL 236 AVOCADO STREET Avalon Street Avocado Street Offering Memorandum Kidder Mathews 7

8 120 AERIAL Newport Blvd S 23rd Street Newport Blvd N 120 ALBERT PLACE Albert Place Elden Avenue Cecil Place Offering Memorandum Kidder Mathews 8

9 The Asset Ellis Ave Sunflower Ave Garfield Ave 405 Yorktown Ave Baker St Red Hills Ave Main St Adams Ave Campus Dr Indianapolis Ave COSTA MESA Mesa Dr Atlanta Ave 236 AVOCADO STREET University Dr Hamilton Ave 120 Pomona Ave Tustin Ave Irvine Ave Jamboree Rd E 15 th St PACIFIC OCEAN NEWPORT BEACH Offering Memorandum Kidder Mathews 9

10 The Asset AVOCADO 7 INTERIOR PHOTOS Offering Memorandum Kidder Mathews 10

11 The Asset AVOCADO 7 EXTERIOR PHOTOS Offering Memorandum Kidder Mathews 11

12 The Asset INTERIOR PHOTOS Offering Memorandum Kidder Mathews 12

13 The Asset EXTERIOR PHOTOS Offering Memorandum Kidder Mathews 13

14 Valuation FINANCIAL ANALYSIS Unit Mix UNITS TYPE UNIT SF TOTAL CURRENT RENT Average MARKET RENT CURRENT RENT/SF 1 1 Bed / 1 Bath $1,475 $1,650 $2.03 $ Bed / 1 Bath Loft AVOCADO ,000 $1,529 $1,650 $2.04 $ Bed / 1 Bath 921 9,210 $1,714 $1,925 $1.86 $ Bed / 1.5 Bath AVOCADO 7 1,178 3,534 $1,833 $1,975 $1.56 $ ,469 $1,679 $1,857 $1.84 $2.03 MARKET RENT/SF Offering Memorandum Kidder Mathews 14

15 Valuation Income & Expenses INCOME CURRENT PRO FORMA MARKET PRO FORMA Scheduled Market Rent $362,760 $401,100 Less: Vacancy (4.00%) ($14,510) ($16,044) Net Rental Income $348,250 $385,056 Plus: Fee & Laundry Income $2,442 $2,442 Total Operating Income (EGI) $350,692 $387,498 EXPENSES PER UNIT CURRENT PRO FORMA MARKET PRO FORMA Administrative $56 $1,000 $1,000 Repairs & Maintenance / Turnover $913 $16,430 $17,100 Utilities $739 $13,300 $13,300 Contracted Services $519 $9,337 $9,337 Real Estate Taxes $3,744 $67,384 $67,384 Special Assessments $288 $5,176 $5,176 Insurance $293 $5,268 $5,268 Replacement Reserve $200 $3,600 $3,600 Total Expenses $121,495 $122,165 Per Unit $6,750 $6,787 Per SF $7.38 $7.42 Net Operating Income $229,196 $265,333 Investment Summary Price $6,420,000 Price per Unit $356,667 Price per SF $ Current Cap Rate 3.57% Market Cap Rate 4.13% Offering Memorandum Kidder Mathews 15

16 Market Positioning RENT COMPARABLES 1 AVA NEWPORT 2 BAYWIND APARTMENTS 1765 SANTA ANA AVENUE, COSTA MESA, CA E 21ST STREET, COSTA MESA, CA Number of Units 145 Number of Units 30 Year Built 1963 Year Built 1970 UNITS TYPE SF ASKING RENT RENT/SF 12 Studio 320 $1,875 $ Bed / 1 Bath 675 $2,100 $ Bed / 1 Bath 650 $2,175 $ Bed / 1 Bath 800 $2,245 $ Bed / 1 Bath 875 $2,265 $2.59 UNITS TYPE SF ASKING RENT RENT/SF 8 1 Bed / 1 Bath 746 $1,759 $ Bed / 1 Bath 875 $2,060 $ Bed / 2 Bath 957 $2,170 $ Bed / 2 Bath 1,170 $2,575 $ Weighted Average 871 $2,029 $ Bed / 1.5 Bath 1,075 $2,500 $ Bed / 2 Bath 1,150 $2,900 $ Bed / 2 Bath 1,200 $3,025 $ Weighted Average 839 $2,364 $ EASTSIDE APARTMENTS 131 E 18TH STREET, COSTA MESA, CA Number of Units 24 3 EASTSIDE APARTMENTS 126 E 18TH STREET, COSTA MESA, CA Number of Units 30 Year Built 1975 Year Built 1973 UNITS TYPE SF ASKING RENT RENT/SF 20 1 Bed / 1 Bath 706 $1,910 $ Bed / 1 Bath 896 $2,200 $ Weighted Average 738 $1,958 $2.65 UNITS TYPE SF ASKING RENT RENT/SF 12 Studio 472 $1,630 $ Bed / 1 Bath 702 $1,910 $ Bed / 1 Bath 943 $2,200 $ Weighted Average 706 $1,914 $2.71 Offering Memorandum Kidder Mathews 16

17 Market Positioning RENT COMPARABLES 5 HAMILTON 6 MADISON NEWPORT HAMILTON STREET, COSTA MESA, CA 2345 NEWPORT BOULEVARD, COSTA MESA, CA Number of Units 40 Number of Units 136 Year Built 1965 Year Built 1992 UNITS TYPE SF ASKING RENT RENT/SF 8 Studio 370 $1,375 $ Bed / 1 Bath 645 $1,625 $ Bed / 1 Bath 900 $1,900 $ Weighted Average 616 $1,603 $2.60 UNITS TYPE SF ASKING RENT RENT/SF 54 1 Bed / 1 Bath 660 $1,795 $ Bed / 2 Bath 880 $2,240 $ Bed / 2 Bath 1,160 $2,965 $ Weighted Average 813 $2,117 $ THE COURTYARDS 8 THE PARSONS 324 E 20TH STREET, COSTA MESA, CA 2000 PARSONS STREET, COSTA MESA, CA Number of Units 28 Number of Units 60 Year Built 1970 Year Built 1968 UNITS TYPE SF ASKING RENT RENT/SF 6 1 Bed / 1 Bath 650 $1,795 $ Bed / 1 Bath 900 $1,995 $ Bed / 1.5 Bath 1,100 $2,275 $ Bed / 2 Bath 950 $2,150 $ Weighted Average 889 $2,036 $2.29 UNITS TYPE SF ASKING RENT RENT/SF 14 Studio 460 $1,690 $ Bed / 1 Bath 735 $1,925 $ Bed / 2 Bath 865 $2,180 $ Weighted Average 714 $1,955 $2.74 Offering Memorandum Kidder Mathews 17

18 Market Positioning RENT COMPARABLES (CONTINUED) 9 LA COSTA 354 AVOCADO STREET, COSTA MESA, CA Number of Units 24 Year Built 1968 Subject AVOCADO 7 & 236 AVOCADO STREET & 120 COSTA MESA, CA Number of Units 18 Year Built 1971 & 1987 UNITS TYPE SF CURRENT RENT RENT/SF 8 1 Bed / 1 Bath 602 $1,580 $ Bed / 1 Bath 925 $1,860 $ Weighted Average 817 $1,767 $2.16 UNITS TYPE SF CURRENT RENT RENT/SF 1 1 Bed / 1 Bath (ALBERT PL) 725 $1,475 $ Bed / 1 Bath Loft (AVOCADO 7) 750 $1,529 $ Bed / 1 Bath (ALBERT PL) 921 $1,714 $ Bed / 1.5 Bath TH (AVOCADO 7) 1,178 $1,833 $ Weighted Average 915 $1,679 $1.84 Offering Memorandum Kidder Mathews 18

19 Cam AVOCADO 7 & Market Positioning RENT COMPARABLES (CONTINUED) STUDIO UNITS BREAKDOWN PROPERTY CURRENT RENT Hamilton Street $1, East 18th Street $1,630 Baker St Red Hills Ave Parsons Street $1, Santa Ana Avenue $1,875 $2,000 COSTA MESA Mesa Dr $1,500 $1,000 $500 $0 AVERAGE $1, AVOCADO STREET 9 Hamilton Ave 5 Pomona Ave S S 2 7 Tustin Ave Irvine Ave 120 Jamboree Rd E 15 th St NEWPORT BEACH Offering Memorandum Kidder Mathews 19

20 Market Positioning RENT COMPARABLES (CONTINUED) $2,500 $2,000 $1,500 AVERAGE $1,867 $2,500 $2,000 $1,500 AVERAGE $2,186 $1,000 $1,000 $500 $500 $0 S $0 S ONE-BEDROOM UNITS BREAKDOWN TWO-BEDROOM UNITS BREAKDOWN PROPERTY CURRENT RENT PROPERTY CURRENT RENT Subject Property $1, Avocado Street $1, Hamilton Street $1, East 21st Street $1, Newport Boulevard $1, East 20th Street $1, East 18th Street $1, East 18th Street $1, Parsons Street $1, Santa Ana Avenue $2,100 Subject Property $1, Avocado Street $1, Hamilton Street $1, East 21st Street $2, East 20th Street $2, Parsons Street $2, East 18th Street $2, East 18th Street $2, Newport Boulevard $2, Santa Ana Avenue $2,301 Offering Memorandum Kidder Mathews 20

21 Market Positioning SALE COMPARABLES SANTA ANA AVENE, COSTA MESA Property Information Sales Data Units Built Rentable SF Price Price/Unit Price/SF Cap Rate Sale Date ,640 $2,450,000 $408,333 $ % 9/ THE COURTYARDS, 324 EAST 20TH STREET, COSTA MESA Property Information Sales Data Units Built Rentable SF Price Price/Unit Price/SF Cap Rate Sale Date ,900 $10,250,000 $366,071 $ % 5/17 *Listed and Sold by Steven Brombal and Joshua Rhee 1933 WALLACE AVENUE, COSTA MESA Property Information Sales Data Units Built Rentable SF Price Price/Unit Price/SF Cap Rate Sale Date ,424 $2,375,000 $263,889 $ % 5/ & 868 CENTER STREET, COSTA MESA Property Information Sales Data Units Built Rentable SF Price Price/Unit Price/SF Cap Rate Sale Date ,400 $2,920,000 $365,000 $ % 3/17 5 PAULARINO TOWNOMES, 811 PAULARINO AVENUE, COSTA MESA Property Information Sales Data Units Built Rentable SF Price Price/Unit Price/SF Cap Rate Sale Date ,432 $4,600,000 $328,571 $ % 2/ AVOCADO STREET, COSTA MESA Property Information Sales Data Units Built Rentable SF Price Price/Unit Price/SF Cap Rate Sale Date ,996 $8,125,000 $451,389 $ % 1/17 Offering Memorandum Kidder Mathews 21

22 Market Positioning SALE COMPARABLES CONTINUED WEST BAY STREET, COSTA MESA Property Information Sales Data Units Built Rentable SF Price Price/Unit Price/SF Cap Rate Sale Date ,639 $2,760,000 $306,667 $ % 11/ EASTSIDE COTTAGES, 2550 SANTA ANA AVENUE, COSTA MESA Property Information Sales Data Units Built Rentable SF Price Price/Unit Price/SF Cap Rate Sale Date ,300 $2,547,000 $363,857 $ % 11/16 *Listed and Sold by Steven Brombal and Joshua Rhee 1775 ORANGE AVENUE, COSTA MESA Property Information Sales Data Units Built Rentable SF Price Price/Unit Price/SF Cap Rate Sale Date ,586 $2,550,000 $364,286 $ % 11/ WALLACE AVENUE, COSTA MESA Property Information Sales Data Units Built Rentable SF Price Price/Unit Price/SF Cap Rate Sale Date ,309 $1,925,000 $385,000 $ % On Market Averages $364,883 $ % S S AVOCADO 7, 236 AVOCADO STREET, COSTA MESA Property Information Sales Data Units Built Rentable SF Price Price/Unit Price/SF Cap Rate Sale Date ,534 $2,445,000 $349,286 $ % 9/17, 120, COSTA MESA Property Information Sales Data Units Built Rentable SF Price Price/Unit Price/SF Cap Rate Sale Date ,935 $3,975,000 $361,364 $ % 9/17 Offering Memorandum Kidder Mathews 22

23 Market Positioning SALE COMPARABLES CONTINUED Garfield Ave Yorktown Ave Baker St 5 Red Hills Ave Main St 405 Adams Ave Campus Dr Indianapolis Ave COSTA MESA Mesa Dr Atlanta Ave 236 AVOCADO STREET Hamilton Ave 6 S S 8 1 University Dr Pomona Ave Tustin Ave 120 Irvine Ave Jamboree Rd E 15 th St PACIFIC OCEAN NEWPORT BEACH Offering Memorandum Kidder Mathews 23

24 Market Positioning SALE COMPARABLES CONTINUED PRICE / UNIT $500,000 PRICE/UNIT PRICE / SF Property Price/Unit Wallace Avenue $263,889 $400,000 AVERAGE $364,883 Property Price/SF Center Street $ West Bay Street $306,667 $300, Wallace Avenue $ Paularino Avenue $328,571 S Avocado 7 & Albert Place $356,667 $200, Santa Ana Avene $ Avocado Street $ Santa Ana Avenue $363,857 $100, Paularino Avenue $ Orange Avenue $364, Center Street $365,000 $ S S Avocado 7 & Albert Place $ Santa Ana Avenue $ East 20th Street $366, Wallace Avenue $385,000 $600 PRICE/SF East 20Th Street $ West Bay Street $ Santa Ana Avenue $408,333 $ Wallace Avenue $ Avocado Street $451,389 $400 AVERAGE $ Orange Avenue $ $300 $200 $100 $ S Offering Memorandum Kidder Mathews 24

25 Market Positioning SALE COMPARABLES CONTINUED CAP RATE Property Cap Rate 4.0% CAP RATE East 20th Street 2.80% Santa Ana Avenue 3.00% Paularino Avenue 3.10% 3.5% 3.0% 2.5% AVERAGE 3.37% Orange Avenue 3.37% 2.0% Wallace Avenue 3.40% Santa Ana Avenue 3.40% West Bay Street 3.53% S Avocado 7 & Albert Place 3.57% 1.5% 1.0% 0.5% Center Street 3.60% 0.0% S Avocado Street 3.68% Wallace Avenue 3.79% Offering Memorandum Kidder Mathews 25

26 Appendix MEDIAN HOUSEHOLD INCOME COSTA MESA* $90,000 $70,000 $50,000 *Projections Costa Mesa By the Numbers CURRENT 2022 PROJECTION GROWTH RATE Total Population 118, , % Total Housing Units 42,406 44, % $30,000 $10,000 $50,732 $65,830 $69,980 $79, * Median Income $69,980 $79, % Median Age POPULATION TREND COSTA MESA 140, , ,000 *Projections AVG MORTGAGE PAYMENT** AVG RENT DIFFERENCE Rent vs. Own $3,057 $1,913 $1,144 **$825,000 (Median Home Price) 30 year fixed; 20% down; 3.75% interest (taxes/ins. not included) Source: Zillow 80,000 ASKING RENT & OCCUPANCY COSTA MESA 60,000 40, , , , , * $2,000 $1, % 98% ANNUAL UNEMPLOYMENT RATES COSTA MESA $1,600 96% 10.0% $1,400 94% 8.0% 6.0% 4.0% 8.6% 7.1% 6.1% 4.9% 4.5% 4.3% $1,200 $1,000 $1,458 $1,516 $1,626 $1,688 $1,795 $1,889 $1, YTD Average Asking Rent Occupancy 92% 90% 2.0% YTD Offering Memorandum Kidder Mathews 26

27 Appendix Orange County Construction & Development 1 WESTSIDE GATEWAY 671 W 17TH STREET, COSTA MESA, CA TYPE UNITS % % Building Type Status Apartments Condo Under Construction Units 176 GBA Rent Type Market Segment 264,000 SF Market All ANTON BOULEVARD 580 ANTON BOULEVARD, COSTA MESA, CA TYPE UNITS % 1 Bed / 1 Bath % Building Type Status Mid-Rise Apartment Under Construction Units 250 GBA Rent Type Market Segment 200,000 SF Market All Offering Memorandum Kidder Mathews 27

28 Appendix Orange County Construction & Development Continued 3 BAKER BLOCK 125 BAKER STREET E, COSTA MESA, CA Building Type Mid-Rise Apartment Status Under Construction Units 240 TYPE UNITS % Studio % 1 Bed / 1 Bath % 2 Bed % 3 Bed % GBA Metering 200,000 SF Individual Offering Memorandum Kidder Mathews 28

29 Appendix AREA DEMOGRAPHICS Median Household Income 5 MILES $75,000 or more $60,000 to $75,000 $45,000 to $60,000 3 MILES $30,000 to $45,000 Less than $30, MILE SUBJECT PROPERTIES PACIFIC OCEAN Offering Memorandum Kidder Mathews 29

30 Appendix AREA DEMOGRAPHICS PROFILE 1-Mile Radius Summary Census Population 30,515 32,806 34,316 Households 11,904 12,587 13,102 Families 6,489 6,876 7,162 Average Household Size Owner Occupied Housing Units 4,759 4,830 5,006 Renter Occupied Housing Units 7,145 7,757 8,096 Median Age Trends: Annual Rate Area State National Population 0.90% 0.84% 0.83% Households 0.81% 0.77% 0.79% Families 0.82% 0.77% 0.71% Owner HHs 0.72% 0.67% 0.72% Median Household Income 2.81% 2.66% 2.12% Households by Income Number Percent Number Percent <$15, % % $15,000 - $24,999 1, % 1, % $25,000 - $34, % % $35,000 - $49,999 1, % 1, % $50,000 - $74,999 2, % 2, % $75,000 - $99,999 1, % 1, % $100,000 - $149,999 1, % 2, % $150,000 - $199, % 1, % $200,000+ 1, % 1, % Median Household Income $67,597 $77,662 Average Household Income $99,374 $115,680 Per Capita Income $40,101 $46,064 Offering Memorandum Kidder Mathews 30

31 Appendix AREA DEMOGRAPHICS PROFILE 1-Mile Radius Census Population by Age Number Percent Number Percent Number Percent 0-4 1, % 1, % 1, % 5-9 1, % 1, % 1, % , % 1, % 1, % , % 2, % 1, % , % 2, % 2, % , % 5, % 6, % , % 5, % 5, % , % 4, % 4, % , % 3, % 4, % , % 2, % 2, % % % 1, % % % % Census Race and Ethnicity Number Percent Number Percent Number Percent White Alone 23, % 23, % 24, % Black Alone % % % American Indian Alone % % % Asian Alone 1, % 1, % 2, % Pacific Islander Alone % % % Some Other Race Alone 3, % 4, % 4, % Two or More Races 1, % 1, % 1, % Hispanic Origin (Any Race) 8, % 10, % 11, % Data Note: Income is expressed in current dollars. Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2017 and October 19, 2017 Offering Memorandum Kidder Mathews 31

32 Appendix AREA DEMOGRAPHICS PROFILE 3-Mile Radius Summary Census Population 156, , ,573 Households 61,044 64,354 66,780 Families 34,562 36,463 37,839 Average Household Size Owner Occupied Housing Units 27,520 28,047 28,828 Renter Occupied Housing Units 33,524 36,307 37,952 Median Age Trends: Annual Rate Area State National Population 0.85% 0.84% 0.83% Households 0.74% 0.77% 0.79% Families 0.74% 0.77% 0.71% Owner HHs 0.55% 0.67% 0.72% Median Household Income 2.54% 2.66% 2.12% Households by Income Number Percent Number Percent <$15,000 4, % 4, % $15,000 - $24,999 4, % 4, % $25,000 - $34,999 4, % 3, % $35,000 - $49,999 6, % 5, % $50,000 - $74,999 10, % 9, % $75,000 - $99,999 8, % 8, % $100,000 - $149,999 10, % 12, % $150,000 - $199,999 5, % 6, % $200,000+ 9, % 11, % Median Household Income $78,854 $89,409 Average Household Income $118,866 $135,116 Per Capita Income $46,451 $52,357 Offering Memorandum Kidder Mathews 32

33 Appendix AREA DEMOGRAPHICS PROFILE 3-Mile Radius Census Population by Age Number Percent Number Percent Number Percent 0-4 8, % 8, % 9, % 5-9 8, % 8, % 8, % , % 8, % 8, % , % 9, % 8, % , % 13, % 12, % , % 29, % 32, % , % 23, % 25, % , % 22, % 21, % , % 19, % 20, % , % 13, % 15, % , % 7, % 8, % 85+ 2, % 3, % 3, % Census Race and Ethnicity Number Percent Number Percent Number Percent White Alone 116, % 119, % 120, % Black Alone 1, % 2, % 2, % American Indian Alone % % % Asian Alone 11, % 14, % 16, % Pacific Islander Alone % % % Some Other Race Alone 18, % 21, % 23, % Two or More Races 6, % 7, % 8, % Hispanic Origin (Any Race) 43, % 50, % 55, % Data Note: Income is expressed in current dollars. Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2017 and October 19, 2017 Offering Memorandum Kidder Mathews 33

34 Appendix AREA DEMOGRAPHICS PROFILE 5-Mile Radius Summary Census Population 379, , ,151 Households 140, , ,874 Families 84,177 88,523 91,823 Average Household Size Owner Occupied Housing Units 71,823 73,269 75,333 Renter Occupied Housing Units 68,956 74,952 78,541 Median Age Trends: Annual Rate Area State National Population 0.85% 0.84% 0.83% Households 0.75% 0.77% 0.79% Families 0.73% 0.77% 0.71% Owner HHs 0.56% 0.67% 0.72% Median Household Income 2.48% 2.66% 2.12% Households by Income Number Percent Number Percent <$15,000 11, % 11, % $15,000 - $24,999 9, % 9, % $25,000 - $34,999 9, % 8, % $35,000 - $49,999 13, % 11, % $50,000 - $74,999 23, % 20, % $75,000 - $99,999 18, % 20, % $100,000 - $149,999 25, % 29, % $150,000 - $199,999 14, % 17, % $200, , % 25, % Median Household Income $81,870 $92,557 Average Household Income $119,890 $135,501 Per Capita Income $44,556 $49,999 Offering Memorandum Kidder Mathews 34

35 Appendix AREA DEMOGRAPHICS PROFILE 5-Mile Radius Census Population by Age Number Percent Number Percent Number Percent , % 20, % 21, % , % 20, % 20, % , % 21, % 21, % , % 27, % 26, % , % 35, % 32, % , % 68, % 73, % , % 52, % 58, % , % 51, % 49, % , % 47, % 49, % , % 33, % 38, % , % 18, % 22, % 85+ 6, % 8, % 9, % Census Race and Ethnicity Number Percent Number Percent Number Percent White Alone 256, % 260, % 261, % Black Alone 5, % 6, % 6, % American Indian Alone 1, % 2, % 2, % Asian Alone 53, % 65, % 75, % Pacific Islander Alone 1, % 1, % 1, % Some Other Race Alone 44, % 50, % 54, % Two or More Races 16, % 19, % 21, % Hispanic Origin (Any Race) 103, % 117, % 126, % Data Note: Income is expressed in current dollars. Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2017 and October 19, 2017 Offering Memorandum Kidder Mathews 35

36 Exclusively Represented By Steven C. Brombal Senior Vice President Lic No Joshua Y. Rhee Associate Vice President Lic No Kidder Mathews 1 Park Plaza Suite 500 Irvine, CA kiddermathews.com