ROMAN VILLAS APARTMENTS

Transcription

1 ROMAN VILLAS APARTMENTS 7240 El Cajon Boulevard, San Diego, CA PROPERTY HIGHLIGHTS Extensive, Recent Interior and Exterior Upgrades Strong Unit Mix; Majority 2 Bedroom Units Strong Rental Market; Additional Upside In Rents Located Close to SDSU and La Mesa Benn Vogelsang Vice President (619) vogelsang@scc1031.com Phone: (619) Fax: (866) Kenyon St #411 San Diego, CA

2 Table of Contents Investment Details... 3 Property Description... 4 Property Photos... 5 Property Photos... 6 Regional Map... 7 Location Map... 8 Aerial Map... 9 Executive Summary Pro Forma Summary Unit Mix Report Cash Flow Analysis Loan Analysis Cash In Cash Out Investment Return Internal Rate of Return Demographics Demographics APOD Comps Rent Survey... 28

3 INVESTMENT DETAILS Analysis Analysis Date November 2017 Property Property Property Address 7240 El Cajon Boulevard San Diego, CA Year Built 1972 Purchase Information Property Type MultiFamily Purchase Price $7,295,000 Units 28 Total Rentable Sq. Ft. 20,822 Financial Information Down Payment $2,700,000 Loans Type Debt Term Amortization Rate Payment Fixed $4,595, years 30 years 4.0% $21,937 Income & Expenses Gross Operating Income $491,432 Monthly GOI $40,953 Total Annual Expenses ($165,504) Monthly Expenses ($13,792) Contact Information Benn Vogelsang (619) Lora Johnson Associate (858) Page 3

4 PROPERTY DESCRIPTION Roman Villas Aparments The is a 28 unit apartment complex that consists of 20,822 rentable square feet built in 1972 situated on a 14,043 square foot lot with approximately 16 parking spaces. The unit mix consists of (24) 2 Bedroom / 1 Bath units, (2) 1 Bedroom / 1 Bath units and (2) studios as well as onsite laundry facilities with 3 washers and 4 dryers. Select 2 Bedroom units have inunit stackable washers and dryers. There is a secure courtyard with a picnic table at the center of the property and a unique foyer behind the private entry to the property. Ownership has made significant exterior, interior and systems upgrades. The property has new windows, bathrooms and kitchens have been completely rebuilt, and there is laminate flooring throughout the units. The units feature new appliances, dishwashers, A/C units, and built in microwaves as well as new window coverings. The property has spacious floorplans and offers an investor additional upside in rents in the burgeoning Rolando Village Neighborhood near the College East District. DO NOT WALK ON THE PROPERTY OR DISTURB TENANTS. The property is located just East of where Montezuma Road and El Cajon Blvd meet in the College East District right by the Rolando Village Neighborhood. Rolando is a fully developed suburban community with homes, churches, businesses, parks, and schools. Rolando is a model suburb of San Diego. The exclusive suburban design of the Rolando Village area with its curved streets allows for the retention of its majority older singlefamily homes and is not an area inundated with apartment buildings. The area is just West of La Mesa and East of San Diego State University. Rolando has seen significant rent growth and an improvement in the tenantbase with college students, young professionals, and families residing there. Page 4

5 PROPERTY PHOTOS Roman Villas Aparments Page 5

6 PROPERTY PHOTOS Page 6

7 REGIONAL MAP Page 7

8 LOCATION MAP Page 8

9 AERIAL MAP Page 9

10 EXECUTIVE SUMMARY Acquisition Costs Purchase Price, Points and Closing Costs $7,295,000 Investment Cash $2,700,000 First Loan $4,595,000 Investment Information Purchase Price $7,295,000 Price per Unit $260,536 Price per Sq. Ft. $ Income per Unit $18,090 Expenses per Unit ($5,911) Income, Expenses & Cash Flow Gross Scheduled Income $506,520 Total Vacancy and Credits ($15,088) Operating Expenses ($165,504) Net Operating Income $325,928 Debt Service ($263,247) Cash Flow Before Taxes $62,682 Financial Indicators Cash on Cash Return Before Taxes 2.32% Debt Coverage Ratio 1.24 Capitalization Rate 4.47% Gross Rent Multiplier Gross Income / Square Feet $24.33 Gross Expenses / Square Feet ($7.95) Operating Expense Ratio 33.68% Page 10

11 PRO FORMA SUMMARY UNIT MIX & MONTHLY SCHEDULED Type Units Actual Total Market Total 2 bd / 1 ba 6 $1,585 $9,510 $1,675 $10,050 2 bd / 1 ba 18 $1,525 $27,450 $1,650 $29,700 1 bd / 1 ba 2 $1,350 $2,700 $1,350 $2,700 Studios 2 $1,125 $2,250 $1,200 $2,400 TOTALS 28 $41,910 $44,850 INVESTMENT SUMMARY Price: $7,295,000 Year Built: 1972 Units: 28 Price/Unit: $260,536 RSF: 20,822 Price/RSF: $ Lot Size: 14,043 sf Floors: 2 APN: Cap Rate: 4.47% Market Cap Rate: 4.92% GRM: 14.4 Market GRM: FINANCING SUMMARY Loan Amount: $4,595,000 Down Payment: $2,700,000 Loan Type: Fixed Interest Rate: 4% Term: 30 years Monthly Payment: $21,937 DCR: 1.24 ANNUALIZED INCOME Description Actual Market Gross Potential Rent $502,920 $538,200 Less: Vacancy ($15,088) ($16,146) Misc. Income $3,600 $3,600 Effective Gross Income $491,432 $525,654 Less: Expenses ($165,504) ($167,088) Net Operating Income $325,928 $358,566 Debt Service ($263,247) ($263,247) Net Cash Flow after Debt Service $62,682 $95,319 Principal Reduction $80,920 $80,920 Total Return $143,601 $176,239 ANNUALIZED EXPENSES Description Actual Market Property Management Fee $25,326 $26,910 Building Insurance $8,584 $8,584 Grounds Maintenance $7,219 $7,219 Licenses & Fees $420 $420 Maintenance $14,000 $14,000 Management (Onsite) $3,600 $3,600 Pest Control $822 $822 Taxes Real Estate $82,434 $82,434 Trash Removal $3,000 $3,000 Utilities Gas & Electric $8,610 $8,610 Utilities Water & Sewer $11,489 $11,489 Total Expenses $165,504 $167,088 Expenses Per RSF $7.95 $8.02 Expenses Per Unit $5,911 $5,967 Page 11

12 UNIT MIX REPORT Units Type Approx. SqFt Avg. Rents Monthly Mkt Rents Monthly 6 2 bd / 1 ba 780 $1,585 $9,510 $1,675 $10, bd / 1 ba 780 $1,525 $27,450 $1,650 $29, bd / 1 ba 600 $1,350 $2,700 $1,350 $2,700 2 Studios 451 $1,125 $2,250 $1,200 $2, ,822 $41,910 $44,850 UNIT MIX UNIT MIX SQUARE FEET 2 bd / 1 ba 2 bd / 1 ba 1 bd / 1 ba Studios 2 bd / 1 ba 2 bd / 1 ba 1 bd / 1 ba Studios UNIT MIX INCOME UNIT MIX MARKET INCOME 2 bd / 1 ba 2 bd / 1 ba 1 bd / 1 ba Studios 2 bd / 1 ba 2 bd / 1 ba 1 bd / 1 ba Studios Page 12

13 CASH FLOW ANALYSIS Description Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 GROSS SCHEDULED INCOME $506,520 $521,716 $537,367 $553,488 $570,093 $587,196 $604,811 $622,956 $641,644 $660,894 Turnover Vacancy ($15,088) ($15,540) ($16,006) ($16,487) ($16,981) ($17,491) ($18,015) ($18,556) ($19,113) ($19,686) Total Operating Expenses ($165,504) ($166,264) ($167,046) ($167,852) ($168,683) ($169,538) ($170,419) ($171,326) ($172,260) ($173,223) NET OPERATING INCOME $325,928 $339,912 $354,314 $369,149 $384,429 $400,167 $416,377 $433,074 $450,272 $467,985 Loan Payment ($263,247) ($263,247) ($263,247) ($263,247) ($263,247) ($263,247) ($263,247) ($263,247) ($263,247) ($263,247) NET CASH FLOW (b/t) $62,682 $76,665 $91,067 $105,902 $121,182 $136,920 $153,131 $169,827 $187,025 $204,738 Cash On Cash Return b/t 2.32% 2.84% 3.37% 3.92% 4.49% 5.07% 5.67% 6.29% 6.93% 7.58% * b/t = before taxes;a/t = after taxes Page 13

14 LOAN ANALYSIS Description Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 LOAN 1 Debt Service Analysis Principal Payments $80,920 $84,216 $87,648 $91,218 $94,935 $98,803 $102,828 $107,017 $111,377 $115,915 Interest Payments $182,327 $179,030 $175,599 $172,028 $168,312 $164,444 $160,419 $156,229 $151,869 $147,332 Total Debt Service $263,247 $263,247 $263,247 $263,247 $263,247 $263,247 $263,247 $263,247 $263,247 $263,247 Principal Balance Analysis Beginning Principal Balance $4,595,000 $4,514,080 $4,429,864 $4,342,216 $4,250,998 $4,156,063 $4,057,261 $3,954,433 $3,847,415 $3,736,038 Principal Reductions $80,920 $84,216 $87,648 $91,218 $94,935 $98,803 $102,828 $107,017 $111,377 $115,915 Ending Principal Balance $4,514,080 $4,429,864 $4,342,216 $4,250,998 $4,156,063 $4,057,261 $3,954,433 $3,847,415 $3,736,038 $3,620,123 Page 14

15 CASH IN CASH OUT Description Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Rental Income $502,920 $518,008 $533,548 $549,554 $566,041 $583,022 $600,513 $618,528 $637,084 $656,197 Parking and Laundry Income $3,600 $3,708 $3,819 $3,934 $4,052 $4,173 $4,299 $4,428 $4,560 $4,697 GROSS SCHEDULED INCOME $506,520 $521,716 $537,367 $553,488 $570,093 $587,196 $604,811 $622,956 $641,644 $660,894 Turnover Vacancy ($15,088) ($15,540) ($16,006) ($16,487) ($16,981) ($17,491) ($18,015) ($18,556) ($19,113) ($19,686) GROSS OPERATING INCOME $491,432 $506,175 $521,361 $537,001 $553,111 $569,705 $586,796 $604,400 $622,532 $641,208 Expenses Property Management Fee ($25,326) ($26,086) ($26,868) ($27,674) ($28,505) ($29,360) ($30,241) ($31,148) ($32,082) ($33,045) Building Insurance ($8,584) ($8,584) ($8,584) ($8,584) ($8,584) ($8,584) ($8,584) ($8,584) ($8,584) ($8,584) Grounds Maintenance ($7,219) ($7,219) ($7,219) ($7,219) ($7,219) ($7,219) ($7,219) ($7,219) ($7,219) ($7,219) Licenses & Fees ($420) ($420) ($420) ($420) ($420) ($420) ($420) ($420) ($420) ($420) Maintenance ($14,000) ($14,000) ($14,000) ($14,000) ($14,000) ($14,000) ($14,000) ($14,000) ($14,000) ($14,000) Management (Onsite) ($3,600) ($3,600) ($3,600) ($3,600) ($3,600) ($3,600) ($3,600) ($3,600) ($3,600) ($3,600) Pest Control ($822) ($822) ($822) ($822) ($822) ($822) ($822) ($822) ($822) ($822) Taxes Real Estate ($82,434) ($82,434) ($82,434) ($82,434) ($82,434) ($82,434) ($82,434) ($82,434) ($82,434) ($82,434) Trash Removal ($3,000) ($3,000) ($3,000) ($3,000) ($3,000) ($3,000) ($3,000) ($3,000) ($3,000) ($3,000) Utilities Gas & Electric ($8,610) ($8,610) ($8,610) ($8,610) ($8,610) ($8,610) ($8,610) ($8,610) ($8,610) ($8,610) Utilities Water & Sewer ($11,489) ($11,489) ($11,489) ($11,489) ($11,489) ($11,489) ($11,489) ($11,489) ($11,489) ($11,489) TOTAL OPERATING EXPENSES ($165,504) ($166,264) ($167,046) ($167,852) ($168,683) ($169,538) ($170,419) ($171,326) ($172,260) ($173,223) NET OPERATING INCOME $325,928 $339,912 $354,314 $369,149 $384,429 $400,167 $416,377 $433,074 $450,272 $467,985 * Cash Flow IRR based upon net cash flow and principal payments Page 15

16 CASH IN CASH OUT Description Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Debt Service Loan Interest ($182,327) ($179,030) ($175,599) ($172,028) ($168,312) ($164,444) ($160,419) ($156,229) ($151,869) ($147,332) Principal Payments ($80,920) ($84,216) ($87,648) ($91,218) ($94,935) ($98,803) ($102,828) ($107,017) ($111,377) ($115,915) NET CASH FLOW (b/t) $62,682 $76,665 $91,067 $105,902 $121,182 $136,920 $153,131 $169,827 $187,025 $204,738 Cash Flow IRR N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Projected Property Value $7,295,000 $7,295,000 $7,295,000 $7,295,000 $7,295,000 $7,295,000 $7,295,000 $7,295,000 $7,295,000 $7,295,000 Resale Expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Proceeds b/f Debt Payoff $7,295,000 $7,295,000 $7,295,000 $7,295,000 $7,295,000 $7,295,000 $7,295,000 $7,295,000 $7,295,000 $7,295,000 Loan Principal Balance ($4,514,080) ($4,429,864) ($4,342,216) ($4,250,998) ($4,156,063) ($4,057,261) ($3,954,433) ($3,847,415) ($3,736,038) ($3,620,123) Net Proceeds From Sale $2,780,920 $2,865,136 $2,952,784 $3,044,002 $3,138,937 $3,237,739 $3,340,567 $3,447,585 $3,558,962 $3,674,877 Net Resale IRR 5.32% 5.55% 5.77% 5.99% 6.20% 6.40% 6.59% 6.77% 6.95% 7.12% * Cash Flow IRR based upon net cash flow and principal payments Page 16

17 INVESTMENT RETURN ANALYSIS Description Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Cash Flow To Date $62,682 $139,346 $230,414 $336,316 $457,498 $594,418 $747,549 $917,376 $1,104,401 $1,309,140 Net Resale Proceeds $2,717,380 $2,735,285 $2,756,621 $2,781,528 $2,810,151 $2,842,642 $2,879,159 $2,919,864 $2,964,930 $3,017,306 Invested Capital ($2,700,000) ($2,700,000) ($2,700,000) ($2,700,000) ($2,700,000) ($2,700,000) ($2,700,000) ($2,700,000) ($2,700,000) ($2,700,000) Net Return on Investment $80,062 $174,631 $287,035 $417,844 $567,649 $737,061 $926,708 $1,137,241 $1,369,331 $1,626,445 Internal Rate of Return 2.97% 3.22% 3.51% 3.80% 4.10% 4.39% 4.68% 4.96% 5.23% 5.50% Modified IRR 2.97% 3.18% 3.42% 3.66% 3.89% 4.10% 4.31% 4.49% 4.66% 4.83% NPV (cash flow + reversion) $143,601 $304,482 $483,197 $680,318 $896,435 $1,132,158 $1,388,116 $1,664,961 $1,963,363 $2,284,017 PV (NOI + reversion) $7,620,928 $7,960,840 $8,315,154 $8,684,303 $9,068,732 $9,468,899 $9,885,277 $10,318,351 $10,768,622 $11,236,608 * a/t = after taxes; Modified IRR = Modified Internal Rate of Return; PV = Present Value; NPV = Net Present Value; NOI = Net Operating Income Page 17

18 INTERNAL RATE OF RETURN ANALYSIS BEFORE TAX IRR Time Future Cash Flows Initial Investment ($2,700,000) End of Year 1 $62,682 End of Year 2 $76,665 End of Year 3 $91,067 End of Year 4 $105,902 End of Year 5 $121,182 End of Year 6 $136,920 End of Year 7 $153,131 End of Year 8 $169,827 End of Year 9 $187,025 End of Year 10* $3,879,615 IRR = 7.12% * ($204,738 + $3,674,877) AFTER TAX IRR Time Future Cash Flows Initial Investment ($2,700,000) End of Year 1 $62,682 End of Year 2 $76,665 End of Year 3 $91,067 End of Year 4 $105,902 End of Year 5 $121,182 End of Year 6 $136,920 End of Year 7 $153,131 End of Year 8 $169,827 End of Year 9 $187,025 End of Year 10* $3,222,044 IRR = 5.5% * ($204,738 + $3,017,306) Page 18

19 DEMOGRAPHICS Population Characteristic 1 Mile 3 Mile 5 Mile Ages 04 1,478 10,652 31,936 Ages 59 1,657 12,033 36,602 Ages ,396 10,354 32,138 Ages ,240 9,583 30,552 Ages ,346 10,554 32,198 Ages ,584 11,981 33,717 Ages ,888 13,013 34,141 Ages ,146 13,473 34,338 Ages ,228 13,225 34,300 Ages ,197 12,822 34,185 Ages ,016 11,907 32,051 Ages ,720 10,579 28,502 Ages ,429 8,993 23,845 Ages ,135 7,193 18,737 Ages ,649 14,053 Ages ,484 10,375 Ages ,375 7,164 Race Characteristic 1 Mile 3 Mile 5 Mile Non Hispanic White 18, , ,315 Population Black 2,012 14,019 45,681 Population Am In/AK Nat Household Income 1 Mile 3 Mile 5 Mile Median Household Income $53,195 $54,571 $54,839 < $ ,362 10,321 $10000$ ,021 9,660 $15000$ ,832 9,216 $20000$ ,939 9,492 $25000$ ,494 8,680 $30000$ ,947 9,286 $35000$ ,925 8,710 $40000$ ,407 8,515 $45000$ ,593 7,052 $50000$ ,035 5,638 14,928 $60000$ ,346 5,867 17,048 $75000$ ,558 9,815 23,738 $100000$ ,821 14,214 $125000$ ,250 8,663 $150000$ ,624 6,687 > $ ,987 5,212 Characteristic Housing 1 Mile 3 Mile Housing Units 13,008 74,789 Occupied Housing Units 12,211 70,546 Owner Occupied Housing Units 5,504 34,685 Renter Occupied Housing Units 6,707 35,861 Vacant Housing Units 797 4,243 Page 19

20 DEMOGRAPHICS Population 1 Mile 3 Mile 5 Mile Male 13,099 (49.52 %) 86,279 (48.89 %) 235,299 (48.87 %) Female 13,355 (50.48 %) 90,181 (51.11 %) 246,211 (51.13 %) Total Population 26, , ,510 Age Breakdown 1 Mile 3 Mile 5 Mile Ages 04 1,478 (5.59 %) 10,652 (6.04 %) 31,936 (6.63 %) Ages 59 1,657 (6.26 %) 12,033 (6.82 %) 36,602 (7.60 %) Ages ,396 (5.28 %) 10,354 (5.87 %) 32,138 (7.60 %) Ages ,240 (4.69 %) 9,583 (5.43 %) 30,552 (6.35 %) Ages ,346 (5.09 %) 10,554 (5.98 %) 32,198 (6.69 %) Ages ,584 (5.99 %) 11,981 (6.79 %) 33,717 (7.00 %) Ages ,888 (7.14 %) 13,013 (7.37 %) 34,141 (7.09 %) Ages ,146 (8.11 %) 13,473 (7.64 %) 34,338 (7.13 %) Ages ,228 (8.42 %) 13,225 (7.49 %) 34,300 (7.12 %) Ages ,197 (8.30 %) 12,822 (7.27 %) 34,185 (7.10 %) Ages ,016 (7.62 %) 11,907 (6.75 %) 32,051 (6.66 %) Ages ,720 (6.50 %) 10,579 (6.00 %) 28,502 (5.92 %) Ages ,429 (5.40 %) 8,993 (5.10 %) 23,845 (4.95 %) Ages ,135 (4.29 %) 7,193 (4.08 %) 18,737 (3.89 %) Ages (3.30 %) 5,649 (3.20 %) 14,053 (2.92 %) Ages (2.49 %) 4,484 (2.54 %) 10,375 (2.15 %) Ages (1.85 %) 3,375 (1.91 %) 7,164 (1.49 %) Ages (3.67 %) 6,590 (3.73 %) 12,676 (2.63 %) Page 20

21 DEMOGRAPHICS Household Income 1 Mile 3 Mile 5 Mile Median Income $53,195 $54,571 $54,839 Less than $10, ,362 10,321 $10,000 $14, ,021 9,660 $15,000 $19, ,832 9,216 $20,000 $24, ,939 9,492 $25,000 $29, ,494 8,680 $30,000 $34, ,947 9,286 $35,000 $39, ,925 8,710 $40,000 $44, ,407 8,515 $45,000 $49, ,593 7,052 $50,000 $59,999 1,035 5,638 14,928 $60,000 $74,999 1,346 5,867 17,048 $75,000 $99,999 1,558 9,815 23,738 $100,000 $124, ,821 14,214 $125,000 $149, ,250 8,663 $150,000 $199, ,624 6,687 Greater than $200, ,987 5,212 Housing 1 Mile 3 Mile 5 Mile Housing Units 13,008 74, ,014 Occupied Units 12,211 70, ,951 Owner Occupied Units 5,504 34,685 87,235 Renter Occupied Units 6,707 35,861 89,716 Vacant Units 797 4,243 10,063 Race Demographics 1 Mile 3 Mile 5 Mile Population Non Hispanic White 18, , ,315 Population Black 2,012 14,019 45,681 Population Am In/Ak Nat Page 21

22 APOD CASH FLOW ANALYSIS APARTMENT INVESTMENT INFORMATION # Units Address City Zip El Cajon Blvd San Diego GRM CAP Rate Price Current Market Current Market $7,295, % 4.9%. $/Square Foot Gross Sq. Ft. Parcel Size (Approx.) (Approx.) (Approx.) $ ,043 $/Unit $260,536 Yr. Built (Approx.) 1972 Map Code Income Detail Estimated Annual Operating Expenses # Units Type Rent Total Estimated Actual Average Rents Rent Range Advertising $0 Management (Off Site) $25, Br/1Ba $1,585 $9,510 Elevator $0 Management (On Site) $3, Br/1Ba $1,525 $27,450 Gas & Electric $8,610 Licenses & Fees $ Br/1Ba $1,295 $2,590 Water & Sewer $11,489 Miscellaneous $0 2 Studios $1,125 $2,250 Landscaping $7,219 Reserves $0 Trash Removal $3,000 Pool $0 Parking & Laundry Income $300 Pest Control $822 Insurance $8,584 Total Monthly Income $42,100 Maintenance $14,000 Taxes $82,434 Estimated Market Rents Total Annual Operating Expenses (estimated): $165, Br/1Ba $1,675 $10, Br/1Ba $1,650 $29,700 Expenses Per: Unit $5, Br/1Ba $1,350 $2,700 % of Actual GSI 33% 2 Studios $1,200 $2,400 Parking & Laundry Income $300 Total Monthly Income $45,150 Estimated Annual Operating Proforma Financing Summary Actual Market Gross Scheduled Income $505,200 $541,800 Downpayment: $2,700,000 Less: Vacancy Factor 3% $15,156 $16,254 37% Gross Operating Income $490,044 $525,546 Interest Rate: 4.000% Less: Expenses 33% $165,438 $165,438 Amortized over: 30 Years Net Operating Income $324,607 $360,109 Proposed Loan Amount: $4,595,000 Less: 1st TD Payments ($263,247) ($263,247) Debt Coverage Ratio: Current: 1.23 PreTax Cash Flow $61,360 $96,862 Market: 1.37 Cash On Cash Return 2.3% 3.6% Principal Reduction $80,920 $80,920 Total Potential Return (End of Year One) 5% 7% Comments PLEASE DO NOT WALK ON THE PROPERTY OR DISTURB TENANTS Benn Vogelsang BRE # vogelsang@scc1031.com The information contained herein has been obtained from sources believed reliable. While South Coast Commercial does not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates are used for example only and do not represent the current or future performance of the property. The value of this transaction to you depends on tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs. BRE # Page 22

23 COMPS th St Talmadge on 44th SOLD San Diego, CA San Diego County Sale Date: 09/07/2017 Bldg Type: Class C MultiFamilyApartments Sale Price: Price/SF: $5,125,000 Confirmed $ Year Built/Age: GBA: Built 1965 Age: 52 15,120 SF Price/Unit: $284,722 # of Units: 18 PrFrma Cap Rate: Actual Cap Rate: 4.53% Zoning: Sale Conditions: MR25 GRM/GIM: Parcel No: Financing: Down payment of $5,125,000 (100.0%) Comp ID: Research Status: Confirmed Map Page: Thomas Bros. Guide 1269H st St El Camino Apartments SOLD San Diego, CA San Diego County Sale Date: 01/31/2017 (209 days on mkt) Bldg Type: Sale Price: Price/SF: $2,930,000 Confirmed $ Year Built/Age: GBA: 8,440 SF Price/Unit: $266,364 # of Units: 11 PrFrma Cap Rate: Actual Cap Rate: 5.20% Zoning: Sale Conditions: GRM/GIM: 13.40/ Parcel No: Financing: Down payment of $2,930,000 (100.0%) Comp ID: Research Status: Confirmed Class C MultiFamilyApartments Built 1965 Renov 2016 Age: 52 MR10B, San Diego 1031 Exchange, Debt Assumption Map Page: Thomas Bros. Guide 1270A th St SOLD San Diego, CA San Diego County Sale Date: 02/09/2017 (70 days on mkt) Bldg Type: Class C MultiFamilyApartments Sale Price: Price/SF: $4,025,000 Confirmed $ Year Built/Age: GBA: Built 1973 Age: 44 15,791 SF Price/Unit: $268,333 # of Units: 15 PrFrma Cap Rate: Actual Cap Rate: 4.35% Zoning: Sale Conditions: R2 GRM/GIM: Parcel No: , Financing: Down payment of $4,025,000 (100.0%) Comp ID: Research Status: Confirmed Copyrighted report licensed to South Coast Commercial, Inc /16/2017 Page 1 Page 23

24 COMPS Comanche Dr SOLD La Mesa, CA San Diego County Sale Date: 10/31/2017 (118 days on mkt) Bldg Type: Class C MultiFamilyApartments Sale Price: Price/SF: $3,220,000 Confirmed $ Year Built/Age: GBA: Built 1957 Age: 60 11,649 SF Price/Unit: $268,333 # of Units: 12 PrFrma Cap Rate: Actual Cap Rate: 6.11% 5.37% Zoning: Sale Conditions: R4 Deferred Maintenance GRM/GIM: 13.15/ Parcel No: Financing: Down payment of $945,000 (29.3%); $2,275,000 from Burbank Financial Inc Comp ID: Research Status: Confirmed El Cajon Blvd BLVD63 SOLD San Diego, CA San Diego County Sale Date: 11/03/2016 Bldg Type: Sale Price: Price/SF: $156,000,000 Confirmed $ Year Built/Age: GBA: 564,272 SF Price/Unit: $469,880 # of Units: 332 PrFrma Cap Rate: Actual Cap Rate: Zoning: Sale Conditions: GRM/GIM: Parcel No: Financing: Comp ID: Research Status: Confirmed Class A MultiFamilyApartments Built 2014 Age: 2 Deed Restriction La Mesita Pl SOLD La Mesa, CA San Diego County Sale Date: 09/12/2017 (235 days on mkt) Bldg Type: Class A MultiFamilyApartments Sale Price: Price/SF: $5,925,000 Confirmed $ Year Built/Age: GBA: Built ,904 SF Price/Unit: $455,769 # of Units: 13 PrFrma Cap Rate: Actual Cap Rate: 5.40% Zoning: Sale Conditions: R Exchange GRM/GIM: 13.92/ Parcel No: Financing: Down payment of $1,925,000 (32.5%); $4,000,000 from Mission Federal Credit Union Comp ID: Research Status: Confirmed Copyrighted report licensed to South Coast Commercial, Inc /16/2017 Page 2 Page 24

25 COMPS Parkway Dr The Cove SOLD La Mesa, CA San Diego County Sale Date: 09/29/2017 Bldg Type: Class C MultiFamilyApartments Sale Price: Price/SF: $33,950,000 Confirmed $ Year Built/Age: GBA: Built 1974 Renov 1998 Age: ,725 SF Price/Unit: $253,358 # of Units: 133 PrFrma Cap Rate: Actual Cap Rate: 4.50% Zoning: Sale Conditions: GRM/GIM: Parcel No: Financing: $21,998,000 from Berkadia Commercial Mortgage, LLC; Conventional loan type Comp ID: Research Status: Confirmed Winona Ave Talmadge SOLD San Diego, CA San Diego County Sale Date: 01/24/2017 (85 days on mkt) Bldg Type: Sale Price: Price/SF: $2,625,000 Confirmed $ Year Built/Age: GBA: 6,880 SF Price/Unit: $262,500 # of Units: 10 PrFrma Cap Rate: Actual Cap Rate: 4.80% Zoning: Sale Conditions: GRM/GIM: 13.90/ Parcel No: Financing: , $1,312,500 from Homestreet Bank Comp ID: Research Status: Confirmed Class C MultiFamilyApartments Built 1972 Renov 2016 Age: 45 R4, San Diego 1031 Exchange Copyrighted report licensed to South Coast Commercial, Inc /16/2017 Page 3 Page 25

26 COMPS Address City Property Info Sale Info th St San Diego 15,120 SF Multi Family/Apartments Sold: $5,125,000 ($284,722/Unit) st St San Diego 8,440 SF MultiFamily/Apartments Sold: $2,930,000 ($266,364/Unit) th St San Diego 15,791 SF Multi Family/Apartments Sold: $4,025,000 ($268,333/Unit) Comanche Dr La Mesa 11,649 SF Multi Family/Apartments Sold: $3,220,000 ($268,333/Unit) El Cajon Blvd San Diego 564,272 SF Multi Family/Apartments Sold: $156,000,000 ($469,880/Unit) La Mesita Pl La Mesa 20,904 SF Multi Family/Apartments Sold: $5,925,000 ($455,769/Unit) Parkway Dr La Mesa 107,725 SF Multi Family/Apartments Sold: $33,950,000 ($253,358/Unit) Winona Ave San Diego 6,880 SF MultiFamily/Apartments Sold: $2,625,000 ($262,500/Unit) Copyrighted report licensed to South Coast Commercial, Inc /16/2017 Page 4 Page 26

27 COMPS Quick Stats Report Comps Statistics Low Average Median High Count Sale Price $2,625,000 $26,725,000 $4,575,000 $156,000,000 8 Building Size 6,880 SF 93,848 SF 15,456 SF 564,272 SF 8 Price per SF $ $ $ $ Actual Cap Rate 4.35% 4.88% 4.80% 5.40% 7 Gross Income Multiplier Gross Rent Multiplier # of Units Price per Unit $253,358 $393,015 $268,333 $469,880 8 Days on Market Sale Price to Asking Price Ratio 96.41% 98.31% 99.06% 99.16% 5 Totals Sold Transactions Total Sales Volume: $213,800,000 Total Sales Transactions: 8 Survey Criteria basic criteria: Type of Property MultiFamily; Sale Date from 11/1/2016; Sale Status Sold; Return and Search on Portfolio Sales as Individual Properties Yes; Exclude NonArms Length Comps Yes multifamily specific criteria: Price/Unit from $200,000.00; Include Undisclosed Sale Price geography criteria: Zip Code 91941, La Mesa, CA; 91942, La Mesa, CA; 92115, San Diego, CA Copyrighted report licensed to South Coast Commercial, Inc /16/2017 Page 5 Page 27

28 RENT SURVEY Location Rent Unit Mix SF Rent/SF Amenities 4474 Winona Ave $1,780 2Br/1Ba 800 $2.23 Granite, laminate flooring, dishwasher, stainless steel appliances, common laundry, 1 parking space 4474 Winona Ave $1,475 1Br/1Ba 600 $2.46 Granite, laminate flooring, dishwasher, stainless steel appliances, common laundry, 1 parking space 4433 Winona Ave $1,895 2Br/2Ba 900 $2.11 Dishwasher, Granite, Plank Flooring, garage, in unit laundry st Street $1,750 2Br/2Ba 900 $1.94 New Kitchens and Bathrooms, common laundry 5502 Adelaide Ave $1,750 2Br/2Ba 850 $2.06 Dishwasher, Granite, Plank Flooring, garage, in unit laundry 4380 Van Dyke Ave $1,650 2Br/2Ba 900 $1.83 Tile Flooring, New Kitchen, dishwasher 4380 Van Dyke Ave $1,395 1Br/1Ba 550 $2.54 Laminate Flooring, New Kitchen, no dishwasher st Street $1,415 1Br/1Ba 550 $2.57 Granite, laminate flooring, dishwasher, stainless steel appliances, common laundry, 1 parking space $1, $2.22 Page 28