AVAILABLE FOR SALE 675 SOUTH ROOSEVELT STREET TEMPE, ARIZONA OLEANDER LOFTS

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1 FOR MORE INFORMATION, PLEASE CONTACT: Todd Braun D Nick Neslund D All information furnished regarding property for sale, rental or financing is from sources deemed reliable, but no warranty or representation is made to the accuracy thereof and same is submitted to errors, omissions, change of price, rental or other conditions prior to sale, lease or financing or withdrawal without notice. No liability of any kind is to be imposed on the broker herein.

2 TABLE OF CONTENTS Property Information Offering Summary... 4 Property Overview... 5 Community Amenities... 6 Unit Amenities... 7 Location Neighborhood Amenities... 9 Aerial Overview Why Phoenix? Greater Phoenix Overview Financial Analysis Proforma Sales Comparables Multi-Family Sales Comparables Condo Sales Comparables Rent Comparables... 22

3 PROPERTY INFORMATION

4 OFFERING SUMMARY Lee & Associates is pleased to present the opportunity to acquire the Oleander Lofts apartments. The 12 unit complex is comprised of all 2 bedroom condos. Oleander Lofts is a mix of three and five story buildings built with block, concrete, and steel. OFFERING TERMS: Cash / New Debt PRICE: $5,300,000 PROPERTY TOURS: By appointment only.

5 PROPERTY OVERVIEW Units: 12 Year Built: 2009 Construction Type: Block, Concrete & Steel Style: Three & Five Story Urban Contemporary Average Unit Size: +/- 1,578 Sqft.

6 COMMUNITY AMENITIES Excellent location in highly desirable area Built in 2009 Private two car garage parking Gated common area and hallways Walking distance to iconic dining, shopping and entertainment Elevator served Pet run BBQ area

7 UNIT AMENITIES Spacious units with well conceived floor plans Concrete floors Caesarstone countertops Full-size pantry* Modern black appliance package Cable television and high-speed internet access Ultra contemporary, industrial style units 10 foot exposed ceilings Living room garage doors w/ electric opener Scenic views Euro style cabinets Washer/dryer in each unit Private balconies Private two car garages Bamboo staircase Frosted glass entry doors Lighted and secured hallways

8 LOCATION

9 A MOUNTAIN ASU STADIUM ASU GOLF s +/- 75,000 STUDENTS MILL AVE. MIXED USE ROOSEVELT ST. UNIVERSITY DR.

10 CAMELBACK MOUNTAIN PAPAGO PARK TEMPE BIO MED CAMPUS 202 MILL AVE. ROOSEVELT ST. WILSON ST.

11 AERIAL OVERVIEW The Oleander Lofts is located in the vibrant city of Tempe and benefits from proximity to Arizona State University, with an enrollment in excess of 75,000+/- students, and the Tempe Town Lake business corridor, with 40,000 nearby employees. 202 Light Rail Liberty Center at Rio Salado embodies high-performance design, state-of-the-art infrastructure and unparalleled visibility in the heart of metropolitan Phoenix. fast facts n 215,000 SF rear loaded building n 190' truck court n Grade level and dock high loading n Skylights as required by code n Concrete tilt panel construction n R-19 insulation n 30' minimum clear height n 6" thick, 4,000 psi reinforced concrete slab n ESFR sprinkler system on subgrade over 10 mil. vapor barrier n 50' x 54' column spacing with 60' speed bay 202 Rio Salado Pkwy Residents at the Oleander Lofts are a short walk away from the Mill Avenue District, which offers vibrant dining, nightlife, shopping, and culture entertainment. 675 S. ROOSEVELT Mill Ave. District Light Rail University Dr. Tempe enjoys and maintains one of the most thriving economic environments in the country with top research firms, Fortune 500 companies, Technology startups, all of which are supported by one of the largest and most innovative universities in the country. Priest Dr. Mill Ave. Rural Rd. Apache Blvd. Broadway Rd. McClintock Dr.

12 WHY PHOENIX?

13 Greater Phoenix is fast-paced, dynamic, and possesses an unapologetic willingness to get things done. Greater Phoenix is comprised of 23 distinct communities cooperating as one region. In a state that recently celebrated its centennial, Greater Phoenix is one of the fastest growing and dynamic metropolitan regions in the country. The region has a pioneering spirit and welcoming attitude toward people and business. When you expand or relocate your business here, you join a community rich with opportunity, innovation and economic vibrancy. Information courtesy of the Greater Phoenix Economic Council (GPEC) gpec.org GREATER PHOENIX REPRESENTS OF THE STATE S ECONOMY LARGEST LABOR POOL IN THE WEST AN EXCEEDINGLY ACCESSIBLE GE GRAPHIC REGION ONE OF THE LOWEST LABOR COSTS IN THE WESTERN U.S. FAST-TRACK PERMITTING 90 DAYS OR LESS THROUGHOUT THE GREATER PHOENIX REGION 24-HOUR PERMITS & INSPECTIONS ACCESS TO CAPITAL AND A OPERATING ENVIRONMENT RIGHT-TO-WORK STATE

14 EDUCATIONAL ASSETS: A CONTINUOUS STREAM OF TALENTED EMPLOYEES Arizona State University, Maricopa Community Colleges, Grand Canyon University, Northern Arizona University, University of Arizona and University of Phoenix are among more than 50 universities and other institutions of higher learning that prepare the region s workforce. ARIZONA STATE UNIVERSITY: #1 MOST INNOVATIVE SCHOOL IN THE U.S , 2015 (US News & World Report) #5 IN THE NATION FOR BEST- QUALIFIED GRADUATES (Wall Street Journal) STUDENT POPULATION OF 80,000+ ACROSS FIVE REGIONAL CAMPUSES MATURE TALENT WORKFORCE PIPELINE ARIZONA HAS AN EXTREMELY COMPETITIVE WORKFORCE IN REGARDS TO TRAINING, QUALITY AND AVAILABILITY OF WORKERS, WHILE MAINTAINING ONE OF THE LOWEST COSTS FOR LABOR IN THE NATION. 70% OF ASU GRADUATES REMAIN IN THE STATE AFTER GRADUATION THUNDERBIRD SCHOOL OF GLOBAL MANAGEMENT: RANKED #1 INTERNATIONAL FULL-TIME MBA MARICOPA COMMUNITY COLLEGES: EDUCATES AND TRAINS 265,000 INDIVIDUALS ANNUALLY The population of Greater Phoenix is 4.4 million and is expected to grow to nearly 6.4 million in the next 20 years. A relatively young region, Greater Phoenix has a median age of 35.4 two years younger than the average age nationwide. Projected employment growth over the next decade is 15.15% compared to the national projected growth of 9.42%.

15 Available sites, robust power, high-speed fiber and the low chance for natural disasters positions Greater Phoenix as a top choice for data centers and advanced business services operations. # OF STUDENTS ENROLLED IN BUSINESS DEGREE PROGRAMS (Graduate and Undergraduate): Arizona State University 8,637 (undergrad only) 6TH LARGEST CONCENTRATION OF DATA CENTERS NATIONALLY Grand Canyon University 12,640 Maricopa Community Colleges 7,506 Northern Arizona University 2,114 University of Arizona 5,800 PALO VERDE NUCLEAR POWER PLANT IS THE LARGEST NUCLEAR POWER PLANT IN THE U.S. NUMBER OF STUDENTS ENROLLED (GRADUATE AND UNDERGRADUATE) Arizona State University 83,301 Grand Canyon University 75,200 Maricopa Community Colleges 265,000 Northern Arizona University 25,590 University of Arizona 42,236 Photo Credit: Kevin Dooley, Flickr.com EXCELLENT CONNECTIVITY TO MAJOR METROPOLITAN MARKETS TOP 5 NATIONALLY FOR TECH JOB GROWTH

16 AFFORDABLE WITH AN INCLUSIVE culture FLOURISHING ARTS & CULTURE SCENE HEARD MUSEUM Photo Credit: Paulina Pineda, Flickr.com THOUSANDS OF ATTRACTIONS & EVENTS BARRETT-JACKSON CLASSIC CAR AUCTION Photo Credit: DeusXFlorida, Flickr.com PROFESSIONAL SPORTS NFL ARIZONA CARDINALS Photo Credit: Chris Cameron, Flickr.com Greater Phoenix encompasses distinct communities, each with its own identity and assets. Collectively, they offer vast opportunity. Because you don t have to be entrenched in the PHOENIX ART MUSEUM Photo Credit: Fuzzy Gerdes, Flickr.com DESERT BOTANICAL GARDEN Photo Credit: Loren Javier, Flickr.com NHL ARIZONA COYOTES Photo Credit: Sergei Scurfield, Flickr.com business or social hierarchy of the region to succeed, Greater Phoenix offers everyone the chance to thrive and make a significant impact. MUSICAL INSTRUMENT MUSEUM Photo Credit: Thomas Quine, Flickr.com PHOENIX ZOO Photo Credit: Stefanie Carson, GPEC NBA PHX SUNS & WNBA PHX MERCURY Photo Credit: Keith Allison, Flickr.com More than 300 days of sunshine annually Median household income of $53,310 GAMMAGE AUDITORIUM Photo Credit: Nick Bastian, Flickr.com ARTLINK FIRST FRIDAYS Photo Credit: Chanel Wheeler, Flickr.com MLB AZ DIAMONDBACKS & SPRING TRAINING Photo Credit: Ken Lund, Flickr.com More than 325 golf courses Median home sale is $217,900 Drive to beaches or the mountain pines within hours The cost of living is 77% cheaper on average than leading California markets Effective property tax rate of 1.25% Personal income tax rate of 2.59% to 4.54% Average commute time is 24.7 minutes MESA ARTS CENTER Photo Credit: David Crummey, Flickr.com MORE THAN 30 CRAFT BREWERIES Photo Credit: Kevin Dooley, Flickr.com NASCAR AT PHX INTERNATIONAL RACEWAY Photo Credit: Hans Enderle, Flickr.com

17 FINANCIAL ANALYSIS

18 PROFORMA Type # of Units Sq. Ft. +/- Total Sq. Ft. +/- Current Rent Proforma Rent 2 Bedroom 2.5 Bath 2 1,642 3,284 $1,900 $2,400 2 Bedroom 3 Bath 5 1,565 7,825 $1,850 $2,300 2 Bedroom 2.5 Bath 5 1,565 7,825 $1,650 $2,200 PROFORMA NOTES Current rental rates average approximately $1,800 per Month, while maintaining 100% occupancy. Submarket rental comparables support a significantly higher potential rate structure, which would exceed an average rental rate of $2,300 per Month. Total/Avg. 12 1,578 18,934 $1,800 $2,300 SCHEDULED RENTAL INCOME Gross Market Rent Vacancy Loss Proforma $331,200 (13,248) Concessions (6,624) Net Rental Income Other Income TOTAL INCOME $311,328 $2,400 $313,728 OPERATING EXPENSES Administrative Repairs & Maintenance Utilities Payroll Property Taxes Property Insurance Management Fee Reserves/Capital TOTAL EXPENSES $2,040 $7,200 $10,900 $5,000 $42,924 $3,470 $9,141 $2,400 $83,075 ($6,917/Unit) NET OPERATING INCOME $230,653 All information furnished regarding property for sale, rental or financing is from sources deemed reliable, but no warranty or representation is made to the accuracy thereof and same is submitted to errors, omissions, change of price, rental or other conditions prior to sale, lease or financing or withdrawal without notice. No liability of any kind is to be imposed on the broker herein.

19 AVAILABLE FOR SALE S ALE S CO M PARABLES

20 MULTIFAMILY SALES COMPARABLES PROPERTY UNITS SALE DATE PRICE PRICE/UNIT 1000 on 5 th 1000 W. 5 th Street Farmer Avenue Lofts S. Farmer Avenue Trio Condominiums 4816 N. Woodmere Fairway Scottsdale, AZ The Place on Jentilly 1717 S. Jentilly Lane /30/17 $6,600,000 $347, /30/15 $9,180,000 $510, /13/17 $4,750,000 $395, /24/17 $9,300,000 $281,818 AVERAGE 21 $7,457,500 $383,755 All information furnished regarding property for sale, rental or financing is from sources deemed reliable, but no warranty or representation is made to the accuracy thereof and same is submitted to errors, omissions, change of price, rental or other conditions prior to sale, lease or financing or withdrawal without notice. No liability of any kind is to be imposed on the broker herein.

21 CONDO SALE COMPARABLES PROPERTY UNIT TYPE SIZE SALE DATE SALE PRICE 140 E. Rio Salado Pkwy Unit E. 6 th St. Unit E. Rio Salado Pkwy Unit E. Rio Salado Pkwy Unit E. Rio Salado Pkwy Unit E. Rio Salado Pkwy Unit E. 6 th Street Unit E. 6 th Street Unit W. 6 th Street Unit W. 6 th Street Unit BD/2.5BA 2,620 SF 1/25/18 $1,100,000 3BD/2.5BA 3,093 5/17/18 $1,300,000 1,830 SF 11/3/17 $550,000 1,794 SF 6/27/18 $540,000 1,600 SF 12/5/17 $423,000 1,818 SF 8/12/17 $476,000 1BD/2BA 1,574 SF 7/17/18 $430,000 2BD/2.5BA 2,725 SF 2/15/18 $935,000 3BD/3.5BA 2,270 SF 8/24/17 $499,000 3BD/3.5BA 2,255 SF 6/25/18 $470,000 AVERAGE 2,158 $672,300 All information furnished regarding property for sale, rental or financing is from sources deemed reliable, but no warranty or representation is made to the accuracy thereof and same is submitted to errors, omissions, change of price, rental or other conditions prior to sale, lease or financing or withdrawal without notice. No liability of any kind is to be imposed on the broker herein.

22 RENT COMPARABLES PROPERTY UNIT TYPE SIZE (SF) ASKING RENT RENT/SF Skywater at Town Lake 601 W. Rio Salado Pkwy. 1,342 1,148 1,105 $2,649 $1,699 $1,495 $1.97 $1.48 $1.35 Ten01 on the Lake 1001 E. Playa Del Norte Drive West 6th 115 W. 6 th Street Vela 555 N. College Avenue The Hyve 1260 E. University Drive Salt 260 E. Rio Salado Pkwy. Nexa 1221 E. Apache Blvd. Union Tempe 712 S. Forest Ave. 723 $1,517 $ ,211 1,492 1,087 1,176 1,182 1,206 $1,859 - $2,059 $1,919-$2,019 $2,009 $2,169-$2,269 $2,159 $2,219 $2,110-$2,715 $1,770-$2,410 $1,775-$2,575 $2.13-$2.36 $2.13-$2.25 $2.10 $2.23-$2.33 $1.78 $1.49 $1.94-$2.49 $1.51-$2.05 $1.47-$2.14 1,132 $1,689 $ $1,855-$2,785 $1.80-$ ,015 1,301 1,323 $1,650-$1,995 $1,825-$1,945 $2,750-$3,040 $2,650-$2,920 $1.70-$2.06 $1.78-$1.92 $2.11-$2.34 $2.00-$ $1,958 $2.23-$2.44 Broadstone Lakeside Drive 946 1,031 1,262 1,128 1,384 1,123 1,287 1,255 $1,860 $1,925 $2,250 $2,100 $2,405 $2,085 $2,390 $2,460 $1.97 $1.87 $1.78 $1.86 $1.74 $1.85 $1.86 $1.96 All information furnished regarding property for sale, rental or financing is from sources deemed reliable, but no warranty or representation is made to the accuracy thereof and same is submitted to errors, omissions, change of price, rental or other conditions prior to sale, lease or financing or withdrawal without notice. No liability of any kind is to be imposed on the broker herein.

23 FOR MORE INFORMATION, PLEASE CONTACT: Todd Braun D Nick Neslund D