OFFERING MEMORANDUM 1750 MAIN STREET EL CENTRO, CA Residential Units $6,800,000

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1 OFFERING MEMORANDUM 52 Residential Units $6,800,000 All 2 & 3 Bedroom Units Built 1991 Significant Rent Increase Potential Built to Condo Specifications Near 100% Market Occupancy Border Patrol Growth Center Solar/Clean Energy Hub Of Southern California 1750 MAIN STREET EL CENTRO, CA OFFERED BY Ray Adams ray.adams@cushwake.com LIC # Clark Rorbach clark.rorbach@cushwake.com LIC # Jason Kimmel jason.kimmel@cushwake.com LIC # Tim Winslow tim.winslow@cushwake.com LIC # Kevin Nolen kevin.nolen@cushwake.com LIC #

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3 Contents Executive Summary 01 Rent Roll Income & Expense Summary 09 Location Overview 17 Offering Summary Property Amenities Unit Features Market Overview Investment Highlights Multifamily Sales Demographics Value Add Opportunity Rental Survey 07 25

4 Executive Summary Mission West Luxury Apartments 1750 West Main Street, El Centro, CA Cushman & Wakefield is pleased to present the Mission West Luxury Apartments for sale. This wonderful Southern California investment opportunity consists of 52 large, desirable residential units. Mission West Luxury Apartments was designed and constructed to condominium specifications in the early 1990s thereby offering many modernized property enhancements and upgraded features. The project offers an alluring unit mix composed of large two and three bedroom units that feature private yards or balconies, architectural articulation, upgraded windows, and vaulted ceilings. The units also enjoy fully appointed kitchens, large linen cabinets, extra storage, and upgraded cabinetry. There is also a shared laundry facility on site providing ownership with a supplementary income stream. Aprrox Building Size 58,437 SF Mission West Luxury Apartments is centrally located along W. Main St. in the heart of El Centro, the county seat for Imperial County. El Centro s growing economy boasts a diversified employment base and increasing population. While always a major agricultural producer, the region s ongoing expansion is being driven by its robust clean energy production hub, international trade corridor and federal border security epicenter. Currently, higher quality multifamily properties in El Centro are operating at near 100% occupancy and at substantially higher rental rates. Mission West Luxury Apartments, with in-place rents currently below market coupled with strong, stable renter demand, provides an investor increased income and value potential without the need for major additional property improvements. Further, through improved management operations, for rent marketing of units, significant future rent increase potential, and or even additional minimal capital improvements, an investor can capture the greater financial benefit this project can deliver. 52 Total Units Finally, investors have several new financing options available including maximizing their leverage. Property Showings Please drive by the property discreetly without disturbing the tenants or management. The parking and project are gated. Property showings to be scheduled through the listing agents. Comparable rental properties operating at near 100% occupancy 01 Mission West Luxury Apartments Cushman & Wakefield Copyright No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by the property owner(s). As applicable, we make no representation as to the condition of the property (or properties) in question.

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6 Offering Summary LIST PRICE: $6,800,000 MARKET GRM: 9.4 TOTAL UNITS: 52 APPROX BLDG. SIZE: 58,437 SF PRICE/UNIT: $130,769 LOT SIZE: 2.61 Acres PRICE/SF: $116 APN: CURRENT CAP RATE: 5.0% YEAR BUILT: 1991 MARKET CAP RATE: 6.2% AVG UNIT SIZE: 1,123 SF CURRENT GRM: Mission West Luxury Apartments Cushman & Wakefield Copyright No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by the property owner(s). As applicable, we make no representation as to the condition of the property (or properties) in question.

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8 Investment Highlights Desirable unit mix Large three-bedroom, three bathroom and two-bedroom, two bathroom units Private yards and balconies Separately metered for gas and electricity Easy care exterior Enhanced architectural detail Fully appointed kitchens Built to condominium quality Asset priced below replacement cost Central and desirable location on West Main Street High occupancy rental market Multi-billion dollar clean energy hub International trade corridor Border Patrol growth center Diversified employment drivers New financing available 70% ltv available El Centro s proximity to Mexico is another natural resource. It draws scores of freight forwarders and international trade logistics firms that facilitate and execute shipments of crops, manufacturing components and finished products back and forth across the U.S. Mexico border. - Town Square Publications 05 Mission West Luxury Apartments Cushman & Wakefield Copyright No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by the property owner(s). As applicable, we make no representation as to the condition of the property (or properties) in question.

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10 Value Add Opportunity With the growing economy, population and high occupancy rates, Mission West Luxury Apartments presents an excellent market opportunity to improve the operational efficiency of this property and maximize its value. Acquiring the asset during the Great Recession of 2009, current Ownership has been a more passive operator choosing to instead focus on larger and more involved projects within its portfolio. An investor could be able to take advantage of increasing income and value through improved management and for rent marketing as units turn over. Significant rental increase potential is also attainable even without major property enhancements; however, by making even just minimal capital improvements an investor could realize the additional financial potential of this project. Significant rental growth in as-is condition New management efficiency Additional Washer/Dryer in each unit (Hookups already installed) Substantial rental increase potential with additional capital improvements 07 Mission West Luxury Apartments Cushman & Wakefield Copyright No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by the property owner(s). As applicable, we make no representation as to the condition of the property (or properties) in question.

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12 Rent Roll Unit Mix UNIT # APPROXIMATE SQUARE FEET CURRENT RENT MARKET RENT 2 bed, 2 bath $ $1,025 3 bed, 3 bath 23 1,324 $1,000-1,050 $1,150 Monthly Rental Income $50,325 $56,175 RUBS (current $26-60/unit - Market $65/unit) $1,966 $3,380 Other Income $300 $300 Laundry Income $650 $650 Monthly Gross Income $53,241 $60,505 Annual Gross Income $638,892 $726, Mission West Luxury Apartments Cushman & Wakefield Copyright No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by the property owner(s). As applicable, we make no representation as to the condition of the property (or properties) in question.

13 Income & Expense Summary PROPOSED FINANCING % OF VALUE Down Payment 35% $2,380,000 New First Loan 4.25% 30 year 65% $4,420,000 TOTAL $6,800,000 CURRENT RENT MARKET RENT ANNUAL GROSS SCHEDULED INCOME $638,892 $726,060 Vacancy 5.0% ($31,945) ($36,303) Effective Gross Income $606,947 $689,757 ESTIMATED EXPENSES Real Estate Taxes 1.15% $78,200 Insurance $0.22 $12,856 Water $37,000 Gas & Electricity $11,000 Landscaping $4,000 Trash $7,000 Pool $3,000 Administrative $5,000 Res. Mgr. $24,000 Management 5% $30,347 Maintenance $1,000/unit $52,000 Legal, Lic & Misc. $4,000 Total Expenses $5,162 Op exp/unit 42% ($268,404) ($268,404) NET OPERATING INCOME $338,544 $421,353 CAPITALIZATION RATE 5.0% 6.2% PROPOSED FINANCING New First Loan (interest payment only) 4.25% $4,420,000 ($187,850) ($187,850) CASH FLOW $150,694 $233,503 Cash On Cash Return 6.3% 9.8% Mission West Luxury Apartments 10

14 Property Amenities Pool Covered parking Easy care landscaping Spa Gated project Separate gas and electric meters Community laundry room Pitched tile roofs Concrete stair threads Carport parking Enhanced Stucco Trim Barbecue area 11 Mission West Luxury Apartments Cushman & Wakefield Copyright No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by the property owner(s). As applicable, we make no representation as to the condition of the property (or properties) in question.

15 Unit Features Large units Oak cabinetry Vaulted ceilings Enhanced paned windows Ceramic counter tops Textured walls Bay windows and atrium windows Gas range Large linen closets Forced air heating/air conditioning and ceiling fans Dishwasher Separate water shut-off valves Private fenced yards Microwave hood Washer/dryer hookups in each unit Private balconies Stainless steel kitchen sinks Individual gas water heaters Mission West Luxury Apartments 12

16 Multi Family Sales PRICE PRICE/UNIT PRICE/SF CAP RATE GRM YEAR BUILT MISSION WEST LUXURY APTS. $6,800,000 $130,769 $116 Current: 5.0% Current: W. MAIN ST. Market: 6.2% Market: 9.4 El Centro, CA VILLA DEL SOL APTS. $5,400,000 $168,750 $ % Washington St. Palm Desert, CA Sold 6/6/ /2. CATALINA ISLE $2,085,000 $99,286 $97 4.4% NK NK Catalina Way Palm Desert, CA Sold 8/1/2017 Studio; 15 1/1, and 5 2/2. OCOTILLO PLACE APTS. $16,225,000 $120,185 $105 NK Dinah Shore Dr. Cathedral City, CA Sold 1/13/ /1; 114 2/2. DESERT OASIS APARTMENTS $11,000, ,222 $ NK Jackson St Indio, CA Sold 4/4/ /1; 28 2/1; 48 3/2; 10 4/2 5 SANTA MARIA CREEK APARTMENTS 1606 Montecito Rd Ramona, CA Sold 1/10/ /1 $4,050,000 $144,643 $ Mission West Luxury Apartments Cushman & Wakefield Copyright No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by the property owner(s). As applicable, we make no representation as to the condition of the property (or properties) in question.

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18 Rental Survey UNIT MIX APPROXIMATE SF CURRENT RENT MARKET RENT MISSION WEST LUXURY APTS. 2 bed, 2 bath 965 $ $1, W. Main St. 3 bed, 3 bath 1,324 $1,000-1,050 $1,150 El Centro, CA VACANCY UNIT MIX # OF UNITS APPROX SF RENT MIRAFLORES LUXURY APTS. 0 1 bed, 1 bath $1, Thomas Dr. 2 bed, 2 bath 60 1,087-1,132 $1,299-1,374 El Centro, CA, bed, 2 bath 30 1,367 $1, VILLAS BONITA ATPS. 0 1 bed, 1 bath $ Wake Ave. 2 bed, 2 bath $1,030-1,125 El Centro, CA, TOWN CENTER VILLA 0 1 bed, 1 bath $ N. 10th St. El Centro, CA, bed, 2 bath 48 1,000 $1, bed, 2.5 bath twnh. 28 1,045 $1,405 + VILLAS PACIFICA 2 bed, 2 bath 60 1,076 $1, Myrtle Rd. Imperial, CA, bed, 2.5 bath 20 1,126 $1, WINFIELD TERRACE 0 1 bed, 1 bath $ Barbara Worth Dr. 2 bed, 2.5 bath 30 1,551 $1,195 El Centro, CA, bed, 3 bath 7 1,562 $1,250 GARDEN VILLAS 0 2 bed, 1.5 bath $ Barbara Worth Dr. El Centro, CA, Mission West Luxury Apartments Cushman & Wakefield Copyright No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by the property owner(s). As applicable, we make no representation as to the condition of the property (or properties) in question.

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20 Location Overview El Centro, California Clean Energy Solar Hub Growing Border Patrol Cross Border Synergy Largest City in Imperial Valley Agricultural Hub Generating over $1 Billion in Farming Revenue Interstate 8 connects San Diego to the West and Phoenix to the East Route 86 and 111 connect to Palm Springs and Coachella Valley Imperial Film Commission filmed in El Centro: Return of the Jedi Stargate Scorpion King Into the Wild 17 Mission West Luxury Apartments Cushman & Wakefield Copyright No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by the property owner(s). As applicable, we make no representation as to the condition of the property (or properties) in question.

21 The Naval Air Facility El Centro is a central part of the Imperial Valley Economy providing a $110 million annual impact including industrial output, direct employee compensation and $8.8 million in federal, state and local tax revenues. The Naval Air Facility El Centro supports 1,398 jobs throughout the region. Mission West Luxury Apartments 18

22 Market Overview The city of El Centro is located in Imperial County, the largest city in the county and the last county to be formed in California in The El Centro Metropolitan Statistical Area (MSA) is part of the Southern California border region, the smallest and most economically diverse region in the state. With an estimated population of 182,795 in 2017, the El Centro MSA has become a very attractive region and since 2010, the region s total population has grown 4.7% from 174,528 according to the census. Population totals are also projected to grow 4.1% through 2022 to 190,244. The El Centro region has an average household income of $61,151 with 28% of the population making $75,000 or higher per year. By 2022, average household income is expected to grow 14.2% to $69,839, with 32.5% of the population making $75,000 or higher per year. These numbers show that the El Centro MSA is still projected to grow in the next five years in addition to what they have in the previous six. Transportation The region offers multiple types of transportation, consisting of three major highways, Imperial Valley Transit and the Greyhound Lines. Interstate 8, State Route 86 and State Route 111 allow for access in and out of the region, from Coachella Valley to the North, and San Diego to the South. The Imperial Valley Transit has seen tremendous growth, servicing 3,000 people per month in 1989, to 73,000 people per month currently. Natural Resources the desert-like region to be a major agricultural hub in the state. The region sees annual crop production over $1 billion. The El Centro MSA has a big advantage when it comes to its location for future growth thanks to the Colorado River. The Imperial Irrigation District holds senior water rights to 3.1 million acre-feet of Colorado River water, which comprises over 70% of California s legal entitlement from the river according to the Imperial Valley Economic Development Corporation. There has been growth across multiple business sectors in Imperial County, and there is plenty of room for more growth. Imperial County is the second largest geothermal energy producing county in the nation, generating over 500 megawatts. Economic Trade For further economic growth, the region carries a unique advantage due to its close proximity to Mexico, for example the Foreign Trade Zone #257. Imported materials or merchandise imported into the zone are excluded from customs duty and excise taxes until they leave the foreign trade zone. Materials and goods exported outside the U.S. are excluded from being charged duty. The El Centro MSA has seen growth in the past stemming from the Colorado River, however, we are now starting to see multiple new businesses emerge and grow from the geographic advantage that this region has over its neighbors. This is why we have witnessed an increase in year-over-year percentage growth in both population as well as average household income. Source: The Colorado River borders the East side of El Centro, and allows 19 Mission West Luxury Apartments Cushman & Wakefield Copyright No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by the property owner(s). As applicable, we make no representation as to the condition of the property (or properties) in question.

23 The El Centro MSA, future job growth over the next 10 years is predicted to be 18.41% and is ranked among the Best Emerging Places to Live. -Sperling s Best Places 2016 Agricultural Production Gross Value $123,057,000 $80,098,000 $4,357,000 Vegetable & Melon Crops Livestock Field Crops Seed & Nursery Crops Fruit & Nut Crops Apiary Products $381,181,000 $468,176,000 $1,006,345,000 Mission West Luxury Apartments 20

24 Market Overview Border Security Homeland Security / US Customs is already the second largest employer in the region. The proposed border wall could create thousands of new jobs. The Department of Homeland Security identified El Centro as one of the sites for the first phase of the proposed border wall. Value of Trade Between US & Mexico through Calexico Ports of Entry Year Total (USD) 2013 $7,764,563, $8,174,247, $8,042,720, Border Crossings at the Calexico-Mexicali Ports of Entry 2014 & 2015 Calexico - Ports Trucks 325, ,474 Trains Personal Vehicles 1,088,640 7,493,005 Passengers 13,659,465 14,388,548 Pedestrians 4,877,677 4,721, Mission West Luxury Apartments Cushman & Wakefield Copyright No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by the property owner(s). As applicable, we make no representation as to the condition of the property (or properties) in question.

25 Public Aquatic Center: City approved plans to build a new $11 million dollar aquatic center. 1.5 miles from Property #1 Commodity Trend Cattle has consistently been the #1 commodity for Imperial County since 1957 Over 6,000 acres of Solar Farms currently operational/ 1,130 acres under construction/ Over 6,000 more acres approved for Solar Farms Mission West Luxury Apartments 22

26 Demographics Demographic and Income Comparison Profile 1750 W Main St, El Centro, California, Prepared by Esri 1750 W Main St, El Centro, California, Latitude: Rings: 1, 3, 5 mile radii Longitude: Mile Radius 3 Mile Radius 5 Mile Radius 2017 Population 19,351 Median Age Population 54,520 Median Age Population 73,430 Median Age Population miles by Age 16 Trends Area 0.5 Demographic and Income Comparison Profile 0 State W Main St, El Centro, California, Prepared USA by Esri W Main St, El Centro, California, Latitude: Population Households Families Owner HHs Median HH Income Rings: 1, 3, 5 mile radii Longitude: Annual Rate (in Percent percent) 5 Population miles by Age 16 Trends Population Households Families Owner HHs Median HH Income 2017 Household Income 2017 Population by Race Annual Rate (in Percent percent) Population by Age Percent 16 $25K - $34K 9.2% $15K - $24K 14.3% Area State USA 14 < $15K 60 $35K 12 - $49K 15.9% 12.7% $200K % 30 $150K - $199K $50K 4 - $74K 4.8% % 2 $100K - $149K 2022 $75K - $99K 12.0% % White Black Am.Ind. Asian Pacific Other Two+ Hisp Percent Mission West Luxury Apartments 2017 Household Income 2017 Population by Race 80 Cushman & Wakefield Copyright No warranty or representation, $15K - $24K $25K express - $34K or implied, is made to the accuracy or completeness of the information 70 contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal Source: without notice, U.S. Census and to Bureau, any special Census listing 2010 conditions 13.1% Summary imposed File 1. by Esri the forecasts property owner(s). for 2017 and As applicable, we make no representation as to the condition of the property (or 9.2% properties) in question. 60 < $15K November 13, 2017 $35K - $49K

27 1 Mile Radius 3 Mile Radius 5 Mile Radius Average Household Income $61,268 Average Household Income $66,487 Average Household Income $67,933 Population by Age Annual Percent Rate (in percent) Population By Income $15K - $24K % 8 $25K - $34K < $15K % 19.5% 4 < $15K 0 2 Population Households $200K+ Families Owner HHs 4.0% $35K 0 - $49K $150K - $199K 12.2% $15K $24K % Population by Age Household $50K - $74K Income 14 Percent % $75K - $99K 9.7% $25K - $34K 9.2% $35K 6 - $49K 12.7% 4 $15K - $24K 14.3% $100K - $149K 10.4% < $15K 15.9% 2017 Population by Race $25K - $34K 2 40 $200K % $150K $199K $50K - $74K 4.8% 20 $75K - $99K 16.1% $100K - $149K $75K - $99K 12.0% 11.2% Population by Race Household Income $35K - $49K 12.6% $25K - $34K 9.2% $15K - $24K 13.1% < $15K 14.7% Percent $35K - $49K 50 $100K White- $149K Black Am.Ind. As 70 Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for and $200K+ 3.6% 30 $200K+ $150K - $199K $50K - $74K 2017 Esri 17.6% 5.0% 20 $100K - $149K $75K - $99K 13.2% % 0 White Black Am.Ind. Asia Mission West Luxury Apartments 24 Percent $50K - $74K 60 $150K - $199K 50

28 1750 MAIN STREET EL CENTRO, CA OFFERED BY Ray Adams LIC # Clark Rorbach LIC # Jason Kimmel LIC # Tim Winslow LIC # Kevin Nolen LIC #