THE DOMICILE 32 Residential Units $8,800,000

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1 THE DOMICILE 32 Residential Units $8,800, W. SACRAMENTO AVENUE, CHICO CA This premier student property consists of 32 newly constructed units located near CSU Chico and downtown Chico, CA. Apartments feature granite counters, wood style plank flooring, stainless appliances and washer/dryers in each. Units have kitchens equipped with range, microwave, stove and refrigerator. Property is near bus routes, and within a short distance to downtown, CSU Chico, restaurants, shopping and grocery stores. All units are leased until 6/30/2018. UNIT MIX Bedrooms / Baths # of Units: Approx Monthly Rent Pro Forma Sq. Feet Per Unit (AVG) Rent 2bed 2bath $1,290 $1,395 2bed 2bath (Furnished) $1,850 $2,150 Page 1

2 UNIT AMENITIES Luxury Finishes STUDENT FOCUSED COMMUNITY LIVING Unit Features Community Features Granite Counters Gas Ranges Microwave Hoods Dishwashers Forced Central Heat/Air In-Unit Laundry BBQ Grills Common Picnic Area Assigned Parking w/ Permits Mature Trees Video Surveillance Bike Racks Page 2

3 LEASE STATUS All units are in leases expiring 6/30/2018. In addition to all above rental rates each unit is charged a water fee each month of $45/month. Some units have pet rent or parking premiums. Since this project was recently built, most units have only been leased at promotional rates and still have growth anticipated to reach full market rental rates. In July 2018 all units will receive a large rental increase, close to $100/unit/month. CHICO VACANCY HISTORY Multifamily properties in Chico have witnessed an extremely low vacancy rate for nearly 10 years. Page 3

4 LOCATION City of Chico Chico is the most populous city in Butte County, California, United States. Chico is located approximately 90 miles north of Sacramento, California. As of the 2010 United States Census, the population was 86,187, reflecting an increase of 26,233 from the 59,954 counted in the 2000 Census. The city is a cultural, economic, and educational center of the northern Sacramento Valley and home to both California State University, Chico and Bidwell Park, the country's 26th largest municipal park and the 13th largest municipally-owned park. Bidwell Park which makes up over 17% of the city. Other cities near the Chico Metropolitan Area (population 212,000) include Paradise and Oroville, while local towns and villages (unincorporated areas) include Durham, Cohasset, Dayton, Nord, and Forest Ranch. The Chico Metropolitan Area is the 14th largest Metropolitan Statistical Area in California. CSU Chico California State University, Chico (also known as CSU Chico or Chico State), is the second-oldest campus in the 23- campus California State University, located in downtown Chico. As of the Fall 2016 semester, the university had a total enrollment of 17,557 students with continued growth expected in following semesters to meet the demand. The university offers 126 types of bachelor's degrees, 35 types of master's degrees, and 4 types of teaching credentials. Page 4

5 UNIT TYPES 2 Bedroom 2 Bath Floorplan (32) Page 5

6 INVESTMENT SUMMARY INVESTMENT SUMMARY ESTIMATED NEW FINANCING Price: $8,800,000 Proposed New Loan $5,800,000 Down Payment: $3,000,000 Interest Rate 4.25% Amortized Down Payment % 34% Term 30 Number of Units: 32 Year Built: 2017 Tenant Deposits/Prepaids $58,000 Cost per Unit: $275,000 Loan/Closing Costs $21,600 Current GRM: Cash for Close $2,963,600 Proforma GRM: Current CAP 4.18% Payment (Monthly) ($28,533) Proforma CAP 5.29% Debt Service (Annual) ($342,390) ANNUALIZED OPERATING DATA: CURRENT RENTS PRO FORMA Scheduled Gross Income $544,980 $644,040 Less Vacancy Reserve -$10, % -$12, % Effective Gross Income $534,080 $631,159 Less Operating Expenses $165,826 $165,826 Net Operating Income $368,254 $465,333 Less: Loan Payment Per -$342,390 Per Month -$342,390 Month Principle Paydown $100,409 $8,367 $100,409 $8,367 Pre Tax Cash Flow $25,864 $2,155 $122,943 $10,245 Total Return Before Taxes: 0.9% 4.1% Total w/principle Paydown: 4.3% 7.5% SCHEDULED INCOME CURRENT EXPENSES Per Unit Per Month % of Income Bedrooms / Baths # of Units: Approx Rent Forma Taxes $96,800 58% $3,025 $8, % Sq. Monthly Pro Feet Per Unit Rent Insurance $5,411 3% $169 $ % 2bed 2bath $1,290 $1,395 Utilities $3,252 2% $102 $ % 2bed 2bath (FURNISHED) $1,850 $2,150 Repair/Maint $4,000 2% $125 $ % 2bed 2bath $1,300 $1,395 Admin $9,000 5% $281 $ % 2bed 2bath $1,350 $1,395 Mgmt. Fee $27,249 16% $852 $2, % Landscaping $3,000 2% $94 $ % Water/Sewer $10,200 6% $319 $ % 32 0 $42,390 $45,395 Marketing $450 0% $14 $38 0.1% Pet/Parking Income $250 $350 Trash $2,964 2% $93 $ % Forfeit/Late $1,450 $6,500 Turn Over $3,500 2% $109 $ % Water/Sewer $1,325 $1,425 0% $0 $0 0.0% Monthly Scheduled Income $45,415 $53,670 0% $0 $0 0.0% Annual Scheduled Income $544,980 $644,040 Total $165,826 30% $5,182 $13,819 Page 6 *Investment Summary is estimated based on market research and broker opinion, not actuals. Buyer to verify.