Offering Memorandum QUINCY ST 1820 Quincy St Bakersfield, CA 93305

Transcription

1 Offering Memorandum 1820 QUINCY ST 1820 Quincy St Bakersfield, CA

2 N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E Confidentiality and Disclaimer 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 Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. 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. Marcus & Millichap 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, 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, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap 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. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc Marcus & Millichap. All rights reserved. Non-Endorsement Notice Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation's logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers. ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS QUINCY ST Bakersfield, CA ACT ID Z

3 TABLE OF CONTENTS SECTION INVESTMENT OVERVIEW 01 Offering Summary Regional Map Local Map Aerial Photo FINANCIAL ANALYSIS 02 Rent Roll Summary Rent Roll Detail Operating Statement Notes Pricing Detail Acquisition Financing MARKET COMPARABLES 03 Sales Comparables Rent Comparables MARKET OVERVIEW 04 Market Analysis Demographic Analysis 3

4 INVESTMENT OVERVIEW 4

5 EXECUTIVE SUMMARY NUMBER OF UNITS UNIT TYPE 2 1 Bedroom 1 Bathroom VITAL DATA Price $1,000,000 CURRENT YEAR 1 Down Payment 60% / $600,000 CAP Rate 5.81% 6.67% Loan Amount $400,000 GRM Loan Type Proposed New Net Operating Income $58,110 $66,660 Interest Rate / Amortization 4.75% / 30 Years Net Cash Flow After Debt Service 5.51% / $33, % / $41,621 Price/Unit $66,667 Total Return 6.54% / $39, % / $48,093 Price/SF $89.27 Number of Units 15 Rentable Square Feet 11,202 Year Built 1960 Lot Size 0.48 acre(s) 12 2 Bedrooms 1 Bathroom UNIT MIX 1 House 2 Bedroom 1 Bathroom APPROX. SQUARE FEET MAJOR EMPLOYERS EMPLOYER OFFERING SUMMARY # OF EMPLOYEES Bolthouse Farms 4,550 Bcsd 1,449 Bakersfield Memorial Hospital 1,100 Kern County Supt of Schools 1,071 Kern County Hospital Authority 1,000 Human Services Dept 908 Esparza Enterprises Inc 883 SAN JOAQUIN COMMUNITY HOSPITAL 850 Public Health Dept 833 Narcotics Division 611 Department of Human Services 600 Family and Consumer Education 600 DEMOGRAPHICS 15 Total 11,202 1-Miles 3-Miles 5-Miles 2017 Estimate Pop 26, , , Census Pop 25, , , Estimate HH 7,054 40,393 74, Census HH 6,745 38,300 70,147 Median HH Income $30,075 $35,074 $37,147 Per Capita Income $11,621 $14,967 $16,331 Average HH Income $41,780 $49,891 $51,907 # 5

6 INVESTMENT OVERVIEW OFFERING SUMMARY Marcus & Millichap is pleased to have been chosen to Exclusively Represent For Sale this (15) Unit Apartment Complex Quincy St. Bakersfield Ca Originally built in 1960 with the lot size 20,925 sf. The property consist of 3 APN's Quincy St has (6) 2 bedrooms 1 bathroom and (1) 1 bedroom 1 bath Quincy St. (is exactly the same as 1820 Quincy st.) 1880 Quincy St. is a house with 2 bedroom 1 bath 882 sf. Each unit is separately metered for gas & electric. There has been quite a bit of velocity in the B & C Class properties selling along with increasing values based upon demand and availability. This property presents an excellent opportunity to own a value add apartment building in a convenient area of Bakersfield. Although this property offers good returns there appears from research to still have the opportunity for additional rental upside in a growing market. INVESTMENT HIGHLIGHTS Minutes From Shopping and Major Highways Close to Schools Class C Quality Apartments Good Returns With Some Upside Rent Increases Medium-Sized Manageable Property with Excellent Units Strong East Bakersfield Rental Market 6

7 PROPERTY SUMMARY THE OFFERING Property 1820 Quincy St Price $1,000,000 Property Address 1820 Quincy St, Bakersfield, CA Assessor s Parcel Number SITE DESCRIPTION Number of Units 15 Year Built/Renovated 1960 Rentable Square Feet 11,202 Lot Size 0.48 acre(s) Type of Ownership FEE SIMPLE OFFERING SUMMARY PROPOSED FINANCING First Trust Deed Loan Amount $400,000 Loan Type Proposed New Interest Rate 4.75% Amortization 30 Years Loan Term 30 Years Loan to Value 40% Debt Coverage Ratio

8 REGIONAL MAP 8

9 LOCAL MAP 9

10 AERIAL PHOTO 10

11 FINANCIAL ANALYSIS 11

12 RENT ROLL SUMMARY FINANCIAL ANALYSIS 12

13 RENT ROLL DETAIL FINANCIAL ANALYSIS 13

14 OPERATING STATEMENT FINANCIAL ANALYSIS 14

15 NOTES FINANCIAL ANALYSIS 15

16 PRICING DETAIL FINANCIAL ANALYSIS 16

17 ACQUISITION FINANCING MARCUS & MILLICHAP CAPITAL CORPORATION CAPABILITIES MMCC our fully integrated, dedicated financing arm is committed to providing superior capital market expertise, precisely managed execution, and unparalleled access to capital sources providing the most competitive rates and terms. We leverage our prominent capital market relationships with commercial banks, life insurance companies, CMBS, private and public debt/equity funds, Fannie Mae, Freddie Mac and HUD to provide our clients with the greatest range of financing options. Our dedicated, knowledgeable experts understand the challenges of financing and work tirelessly to resolve all potential issues to the benefit of our clients. Closed 1,707 debt and equity financings in 2017 National platform operating within the firm s brokerage offices $5.63 billion total national volume in 2017 Access to more capital sources than any other firm in the industry WHY MMCC? Optimum financing solutions to enhance value Our ability to enhance buyer pool by expanding finance options Our ability to enhance seller control Through buyer qualification support Our ability to manage buyers finance expectations Ability to monitor and manage buyer/lender progress, insuring timely, predictable closings By relying on a world class set of debt/equity sources and presenting a tightly underwritten credit file 17

18 MARKET COMPARABLES 18

19 SALES COMPARABLES MAP 1820 QUINCY ST (SUBJECT) Flower St 1103 L St st St nd St 720 Flower St 805 Monterey St 300 Pacific St 609 Grace St 1525 Oregon St 1529 Palm Dr 1524 Mount Vernon Ave 1716 Jefferson St 2105 River Blvd 1127 Knotts St 1819 Flower St 916 Bernard St SALES COMPARABLES IN ESCROW COMPARABLES ON MARKET COMPARABLES 19

20 PROPERTY 1820 QUINCY NAME ST SALES COMPARABLES IN ESCROW COMPARABLES ON MARKET COMPARABLES SALES COMPS AVG IN ESCROW COMPS AVG ON MARKET COMPS AVG SALES COMPARABLES Average Cap Rate Avg. 8.54% Avg. 7.60% Avg. 6.24% Quincy St 1316 Flower St 1103 L St st St nd St 720 Flower St 805 Monterey St 300 Pacific St 609 Grace St 1525 Oregon St 1529 Palm Dr 1524 Mount Vernon Ave 1716 Jefferson St 2105 River Blvd 1127 Knotts St 1819 Flower St 916 Bernard St 20

21 PROPERTY 1820 QUINCY NAME ST SALES COMPARABLES IN ESCROW COMPARABLES ON MARKET COMPARABLES SALES COMPS AVG IN ESCROW COMPS AVG ON MARKET COMPS AVG SALES COMPARABLES Average GRM Avg Avg Avg Quincy St 1316 Flower St 1103 L St st St nd St 720 Flower St 805 Monterey St 300 Pacific St 609 Grace St 1525 Oregon St 1529 Palm Dr 1524 Mount Vernon Ave 1716 Jefferson St 2105 River Blvd 1127 Knotts St 1819 Flower St 916 Bernard St 21

22 PROPERTY 1820 QUINCY NAME ST SALES COMPARABLES IN ESCROW COMPARABLES ON MARKET COMPARABLES SALES COMPS AVG IN ESCROW COMPS AVG ON MARKET COMPS AVG SALES COMPARABLES Average Price Per Square Foot $ $ $ $ $ $ Avg. $91.33 $80.00 $60.00 Avg. $89.35 Avg. $87.61 $40.00 $20.00 $ Quincy St 1316 Flower St 1103 L St st St nd St 720 Flower St 805 Monterey St 300 Pacific St 609 Grace St 1525 Oregon St 1529 Palm Dr 1524 Mount Vernon Ave 1716 Jefferson St 2105 River Blvd 1127 Knotts St 1819 Flower St 916 Bernard St 22

23 PROPERTY 1820 QUINCY NAME ST SALES COMPARABLES IN ESCROW COMPARABLES ON MARKET COMPARABLES SALES COMPS AVG IN ESCROW COMPS AVG ON MARKET COMPS AVG SALES COMPARABLES Average Price Per Unit $80,000 $72,000 $64,000 $56,000 $48,000 Avg. $64,999 Avg. $58,750 Avg. $54,750 $40,000 $32,000 $24,000 $16,000 $8,000 $ Quincy St 1316 Flower St 1103 L St st St nd St 720 Flower St 805 Monterey St 300 Pacific St 609 Grace St 1525 Oregon St 1529 Palm Dr 1524 Mount Vernon Ave 1716 Jefferson St 2105 River Blvd 1127 Knotts St 1819 Flower St 916 Bernard St 23

24 PROPERTY 1820 QUINCY NAME ST SALES MARKETING COMPARABLES TEAM SALES COMPARABLES IN ESCROW COMPARABLES ON MARKET COMPARABLES 1820 QUINCY ST 1820 Quincy St, Bakersfield, CA, FLOWER ST 1316 Flower St, Bakersfield, CA, L ST 1103 L St, Bakersfield, CA, Units Unit Type Offering Price: $1,000, Bdr 1 Bath Price/Unit: $66, Bdrs 1 Bath Price/SF: $ House 2 Bdr 1 Bath CAP Rate: 5.81% GRM: 9.74 Total No. of Units: 15 Year Built: 1960 Underwriting Criteria Income $97,584 Expenses $39,474 NOI $58,110 Vacancy ($5,136) Units Unit Type Close Of Escrow: 10/10/ Bdr 1 Bath Twnhs Days On Market: 19 Sales Price: $299,500 Price/Unit: $74,875 Price/SF: $87.27 CAP Rate: 8.00% GRM: 9.24 Total No. of Units: 4 Year Built: 1984 Underwriting Criteria Income $32,400 Expenses $8,642 NOI $23,757 Vacancy $1,620 Units Unit Type Close Of Escrow: 1/31/ Bdr 1 Bath Twnhs Days On Market: 30 Sales Price: $280,000 Price/Unit: $70,000 Price/SF: $99.50 CAP Rate: 12.00% GRM: 7.88 Total No. of Units: 4 Year Built: 1983 Underwriting Criteria Income $33,000 24

25 PROPERTY 1820 QUINCY NAME ST SALES MARKETING COMPARABLES TEAM SALES COMPARABLES IN ESCROW COMPARABLES ON MARKET COMPARABLES ST ST st St, Bakersfield, CA, ND ST nd St, Bakersfield, CA, FLOWER ST 720 Flower St, Bakersfield, CA, Units Unit Type Close Of Escrow: 3/29/ Bdr 1 Bath Other Days On Market: Bdr 1 Bath Other Sales Price: $240,000 Price/Unit: $60,000 Price/SF: $93.60 CAP Rate: 11.00% GRM: 7.42 Total No. of Units: 4 Year Built: 1959 Underwriting Criteria Income $32,340 Expenses $6,619 NOI $25,721 Vacancy $1,617 Units Unit Type Close Of Escrow: 10/27/ Bdr 1 Bath Other Days On Market: 2 Sales Price: $239,900 Price/Unit: $59,975 Price/SF: $82.72 CAP Rate: 9.00% GRM: 8.00 Total No. of Units: 4 Year Built: 1969 Underwriting Criteria Income $30,000 Expenses $7,300 NOI $22,700 Vacancy $1,500 Units Unit Type Close Of Escrow: 11/27/ Bdr 1 Bath Other Days On Market: 7 Sales Price: $227,000 Price/Unit: $75,667 Price/SF: $85.92 CAP Rate: 6.08% GRM: Total No. of Units: 3 Year Built: 1938 Underwriting Criteria Income $25,200 Expenses $10,120 NOI $13,820 Vacancy $1,260 25

26 PROPERTY 1820 QUINCY NAME ST SALES MARKETING COMPARABLES TEAM SALES COMPARABLES IN ESCROW COMPARABLES ON MARKET COMPARABLES 805 MONTEREY ST 805 Monterey St, Bakersfield, CA, PACIFIC ST 300 Pacific St, Bakersfield, CA, GRACE ST 609 Grace St, Bakersfield, CA, Units Unit Type Close Of Escrow: 1/2/ Bdr 1 Bath Other Days On Market: 9 Sales Price: $229,700 Price/Unit: $57,425 Price/SF: $64.89 CAP Rate: 5.80% GRM: Total No. of Units: 4 Year Built: 1984 Underwriting Criteria Income $22,392 Expenses $7,837 NOI $13,436 Vacancy $1,119 Units Unit Type Close Of Escrow: 6/30/ Bdr 1 Bath Other Days On Market: 11 Sales Price: $160,000 Price/Unit: $80,000 Price/SF: $72.46 CAP Rate: 7.00% GRM: 8.33 Total No. of Units: 2 Year Built: 1959 Underwriting Criteria Income $19,200 Expenses $7,680 NOI $11,520 Vacancy $960 Units Unit Type Close Of Escrow: 7/28/ Bdr 1 Bath Other Days On Market: Bdr 2 Bath Other Sales Price: $271,000 Price/Unit: $67,750 Price/SF: $70.39 CAP Rate: 8.00% GRM: 9.00 Total No. of Units: 4 Year Built: 1968 Underwriting Criteria Income $30,000 Expenses $7,735 NOI $20,765 Vacancy $1,500 26

27 PROPERTY 1820 QUINCY NAME ST SALES MARKETING COMPARABLES TEAM SALES COMPARABLES IN ESCROW COMPARABLES ON MARKET COMPARABLES 1525 OREGON ST 1525 Oregon St, Bakersfield, CA, PALM DR 1529 Palm Dr, Bakersfield, CA, MOUNT VERNON AVE 1524 Mount Vernon Ave, Bakersfield, CA, Units Unit Type Close Of Escrow: 6/16/ Bdr 1 Bath Other Days On Market: 87 Sales Price: $175,000 Price/Unit: $58,333 Price/SF: $ CAP Rate: 6.68% GRM: Total No. of Units: 3 Year Built: 1948 Underwriting Criteria Income $19,500 Expenses $6,825 NOI $11,700 Vacancy $975 Units Unit Type Close Of Escrow: 5/9/ Bdr 1 Bath Other Days On Market: Bdr 1 Bath Other Sales Price: $220,000 Price/Unit: $73,333 Price/SF: $79.68 CAP Rate: 9.00% GRM: 8.94 Total No. of Units: 3 Year Built: 1944 Underwriting Criteria Income $24,600 Expenses $5,900 NOI $18,700 Vacancy $246 Units Unit Type Close Of Escrow: 9/8/ Bdr 1 Bath Other Days On Market: 45 Sales Price: $216,000 Price/Unit: $54,000 Price/SF: $ CAP Rate: 12.00% GRM: 7.83 Total No. of Units: 4 Year Built: 1966 Underwriting Criteria Income $27,600 Expenses $1,200 NOI $26,400 Vacancy $276 27

28 PROPERTY 1820 QUINCY NAME ST SALES MARKETING COMPARABLES TEAM SALES COMPARABLES IN ESCROW COMPARABLES ON MARKET COMPARABLES 1716 JEFFERSON ST 1716 Jefferson St, Bakersfield, CA, RIVER BLVD 2105 River Blvd, Bakersfield, CA, KNOTTS ST 1127 Knotts St, Bakersfield, CA, Units Unit Type Close Of Escrow: 7/27/ Bdr 1 Bath Other Days On Market: 13 Sales Price: $241,000 Price/Unit: $60,250 Price/SF: $ CAP Rate: 8.00% GRM: 9.10 Total No. of Units: 4 Year Built: 1992 Underwriting Criteria Income $26,472 Expenses $6,384 NOI $20,088 Vacancy $1,323 Units Unit Type Close Of Escrow: 4/3/ Bdr 1.5 Bath Other Days On Market: 1 Sales Price: $238,500 Price/Unit: $59,625 Price/SF: $69.25 CAP Rate: 9.00% GRM: 6.76 Total No. of Units: 4 Year Built: 1983 Underwriting Criteria Income $35,280 Expenses $12,434 NOI $21,081 Vacancy $1,764 Units Unit Type Close Of Escrow: 4/28/ Bdr 1 Bath Other Days On Market: 11 Sales Price: $235,000 Price/Unit: $58,750 Price/SF: $73.48 CAP Rate: 8.00% GRM: Total No. of Units: 4 Year Built: 1972 Underwriting Criteria Income $31,200 Expenses $10,920 NOI $18,800 Vacancy $1,560 28

29 PROPERTY 1820 QUINCY NAME ST SALES MARKETING COMPARABLES TEAM SALES COMPARABLES IN ESCROW COMPARABLES ON MARKET COMPARABLES 1819 FLOWER ST 1819 Flower St, Bakersfield, CA, BERNARD ST 916 Bernard St, Bakersfield, CA, Units Unit Type In Escrow 4 1 Bdr 1 Bath Days On Market: Bdr 1 Bath List Price: $470,000 Price/Unit: $58,750 Price/SF: $89.35 CAP Rate: 6.24% GRM: 8.90 Total No. of Units: 8 Year Built: 1961 Underwriting Criteria Income $52,800 Expenses $20,851 NOI $29,309 Vacancy $2,640 Units Unit Type On Market 4 1 Bdr 1 Bath Other Days On Market: 10 List Price: $219,000 Price/Unit: $54,750 Price/SF: $91.33 CAP Rate: 7.60% GRM: 9.34 Total No. of Units: 4 Year Built: 1970 Underwriting Criteria Income $23,460 Expenses $5,558 NOI $16,729 Vacancy $1,173 29

30 8 RENT COMPARABLES MAP 1820 QUINCY ST (SUBJECT) Jefferson St 718 Knotts St 1314 West Dr 1325 Pacific St 1313 Bernard St 119 Flower St 1805 Haley St 916 Bernard St 1524 Flower St

31 PROPERTY 1820 QUINCY NAME ST AVERAGE RENT - MULTIFAMILY RENT COMPARABLES 2 Bedroom 1 Bedroom $700 Avg. $663 $700 $630 $630 Avg. $555 $560 $560 $490 $490 $420 $420 $350 $350 $280 $280 $210 $210 $140 $140 $70 $70 $ Quincy St 1718 Jefferson St 718 Knotts St 1314 West Dr 1325 Pacific St 1313 Bernard St 119 Flower St 1805 Haley St 916 Bernard St 1524 Flower St $ Quincy St 1718 Jefferson St 718 Knotts St 1314 West Dr 1325 Pacific St 1313 Bernard St 119 Flower St 1805 Haley St 916 Bernard St 1524 Flower St 31

32 PROPERTY 1820 QUINCY NAME ST RENT MARKETING COMPARABLES TEAM 1820 QUINCY ST 1820 Quincy St, Bakersfield, CA, JEFFERSON ST 1718 Jefferson St, Bakersfield, CA, KNOTTS ST 718 Knotts St, Bakersfield, CA, Unit Type Units SF Rent Rent/SF 1 Bdr 1 Bath 2 $438 $ Bdrs 1 Bath 12 $582 $0.00 House 2 Bdr 1 Bath 1 $700 $0.00 Total/Avg. 15 $571 Unit Type Units SF Rent Rent/SF 1 Bdr 1 Bath Other $500- $510 $2.08 Studio 1 Bath Other $425- $230 $1.34 Total/Avg $378 $1.55 Unit Type Units SF Rent Rent/SF 1 Bdr 1 Bath Other $525- $550 $0.87 Total/Avg $538 $0.87 YEAR BUILT: 1960 OCCUPANCY: 95% YEAR BUILT: 1926 OCCUPANCY: 95% YEAR BUILT: 10 32

33 PROPERTY 1820 QUINCY NAME ST RENT MARKETING COMPARABLES TEAM 1314 WEST DR 1314 West Dr, Bakersfield, CA, PACIFIC ST 1325 Pacific St, Bakersfield, CA, BERNARD ST 1313 Bernard St, Bakersfield, CA, Unit Type Units SF Rent Rent/SF 1 Bdr 1 Bath Other $500- $525 $1.25 Studio 1 Bath Other $400- $410 $1.08 Total/Avg $459 $1.17 Unit Type Units SF Rent Rent/SF 2 Bdr 1 Bath Other $650- $675 $0.73 Total/Avg $663 $0.73 Unit Type Units SF Rent Rent/SF 1 Bdr 1 Bath Other $600- $601 $0.89 Total/Avg $601 $0.89 OCCUPANCY: 95% YEAR BUILT: 1939 OCCUPANCY: 100% YEAR BUILT: 1971 OCCUPANCY: 95% YEAR BUILT:

34 PROPERTY 1820 QUINCY NAME ST RENT MARKETING COMPARABLES TEAM 119 FLOWER ST 119 Flower St, Bakersfield, CA, HALEY ST 1805 Haley St, Bakersfield, CA, BERNARD ST 916 Bernard St, Bakersfield, CA, Unit Type Units SF Rent Rent/SF 1 Bdr 1 Bath Other $600- $601 $0.80 Total/Avg $601 $0.80 Unit Type Units SF Rent Rent/SF 1 Bdr 1 Bath Other $600- $601 $1.22 Total/Avg $601 $1.22 Unit Type Units SF Rent Rent/SF 1 Bdr 1 Bath Other $485- $500 $0.82 Total/Avg $493 $0.82 OCCUPANCY: 95% YEAR BUILT: 1927 OCCUPANCY: 95% YEAR BUILT: 1949 OCCUPANCY: 95% YEAR BUILT:

35 PROPERTY 1820 QUINCY NAME ST RENT MARKETING COMPARABLES TEAM 1524 FLOWER ST 1524 Flower St, Bakersfield, CA, Unit Type Units SF Rent Rent/SF 1 Bdr 1 Bath Other $575- $600 $1.08 Total/Avg $588 $1.08 OCCUPANCY: 95% YEAR BUILT:

36 MARKET OVERVIEW 36

37 BAKERSFIELD OVERVIEW The Bakersfield metro lies near the southern end of the San Joaquin Valley and encompasses all of Kern County. The Kern River flows through the region, which includes parts of three mountain ranges that limit development: the Sierra Nevadas to the east, the Tehachapis to the south and the Tremblor to the west. The city of Bakersfield, which is the county seat, is located at the foot of the Greenhorn Mountain Range and contains roughly 371,800 residents. METRO HIGHLIGHTS CENTRAL CALIFORNIA LOCATION MARKET OVERVIEW An expanding transportation network provides convenient access to California ports, major cities and recreation areas. NATURAL RESOURCES Kern County is one of the most oil-productive counties in the nation and the Elk Hills field is the state s top natural-gas producer. LOW COST OF LIVING AND DOING BUSINESS Favorable home prices, relatively lower land costs than nearby markets and a pro-business environment attract employers and residents to the area. ECONOMY Agriculture still accounts for a major portion of the local economy with the presence of companies that include Giumarra Cos., Grimmway Farms and Bolthouse Farms. Oil and natural-gas deposits attract companies such as Aera Energy, Chevron, Ensign United States Drilling, and Pacific Gas and Electric to the metro. The alternative-energy sector is growing; the largest wind farm and solar array in the state are located here. The metro also has a strong aviation, space and military presence, including Edwards Air Force Base, Halliburton and the China Lake Naval Air Weapons Station. DEMOGRAPHICS 2017 POPULATION: 894K Growth *: 7% 2017 HOUSEHOLDS: 274K Growth *: 9% 2017 MEDIAN AGE: 31.3 U.S. Median: MEDIAN HOUSEHOLD INCOME: $49,900 U.S. Median: $56,300 * Forecast Sources: Marcus & Millichap Research Services; BLS; Bureau of Economic Analysis; Experian; Fortune; Moody s Analytics; U.S. Census Bureau 1

38 PROPERTY 1820 QUINCY NAME ST Created on May 2018 POPULATION 1 Miles 3 Miles 5 Miles 2022 Projection Total Population 26, , , Estimate Total Population 26, , , Census Total Population 25, , , Census Total Population 23, , ,796 Daytime Population 2017 Estimate 24, , ,933 HOUSEHOLDS 1 Miles 3 Miles 5 Miles 2022 Projection Total Households 7,200 41,967 77, Estimate Total Households 7,054 40,393 74,332 Average (Mean) Household Size Census Total Households 6,745 38,300 70, Census Total Households 6,508 35,669 65,087 Growth % 3.90% 4.22% HOUSING UNITS 1 Miles 3 Miles 5 Miles Occupied Units 2022 Projection 7,200 41,967 77, Estimate 7,645 43,149 79,295 Owner Occupied 2,184 17,544 32,855 Renter Occupied 4,870 22,849 41,477 Vacant 591 2,756 4,962 Persons In Units 2017 Estimate Total Occupied Units 7,054 40,393 74,332 1 Person Units 17.41% 21.56% 22.89% 2 Person Units 20.26% 22.81% 24.50% 3 Person Units 16.03% 15.29% 15.67% 4 Person Units 15.41% 14.53% 14.17% 5 Person Units 13.23% 11.42% 10.46% 6+ Person Units 17.65% 14.40% 12.32% MARKETING DEMOGRAPHICS TEAM HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles 2017 Estimate $200,000 or More 0.62% 1.31% 1.38% $150,000 - $199, % 2.14% 2.34% $100,000 - $149, % 6.40% 7.29% $75,000 - $99, % 9.51% 9.40% $50,000 - $74, % 16.53% 17.35% $35,000 - $49, % 14.19% 14.67% $25,000 - $34, % 12.50% 12.60% $15,000 - $24, % 16.94% 16.21% Under $15, % 20.47% 18.75% Average Household Income $41,780 $49,891 $51,907 Median Household Income $30,075 $35,074 $37,147 Per Capita Income $11,621 $14,967 $16,331 POPULATION PROFILE 1 Miles 3 Miles 5 Miles Population By Age 2017 Estimate Total Population 26, , ,103 Under % 35.85% 34.58% 20 to 34 Years 26.17% 24.02% 24.05% 35 to 39 Years 6.26% 6.14% 6.18% 40 to 49 Years 10.47% 10.73% 10.97% 50 to 64 Years 11.61% 14.07% 14.84% Age % 9.22% 9.38% Median Age Population 25+ by Education Level 2017 Estimate Population Age ,639 76, ,728 Elementary (0-8) 24.88% 16.94% 13.84% Some High School (9-11) 18.19% 15.98% 15.51% High School Graduate (12) 25.42% 27.00% 28.62% Some College (13-15) 18.19% 21.37% 22.96% Associate Degree Only 2.90% 5.45% 5.84% Bachelors Degree Only 2.84% 5.72% 6.28% Graduate Degree 1.55% 3.08% 3.25% Population by Gender 2017 Estimate Total Population 26, , ,103 Male Population 50.87% 49.59% 49.28% Female Population 49.13% 50.41% 50.72% Source: 2017 Experian 38

39 PROPERTY 1820 QUINCY NAME ST MARKETING DEMOGRAPHICS TEAM Population In 2017, the population in your selected geography is 26,457. The population has changed by 10.26% since It is estimated that the population in your area will be 26, five years from now, which represents a change of -0.77% from the current year. The current population is 50.87% male and 49.13% female. The median age of the population in your area is 25.83, compare this to the US average which is The population density in your area is 8, people per square mile. Race and Ethnicity The current year racial makeup of your selected area is as follows: 43.35% White, 5.83% Black, 0.13% Native American and 0.84% Asian/Pacific Islander. Compare these to US averages which are: 70.42% White, 12.85% Black, 0.19% Native American and 5.53% Asian/Pacific Islander. People of Hispanic origin are counted independently of race. People of Hispanic origin make up 83.04% of the current year population in your selected area. Compare this to the US average of 17.88%. Households There are currently 7,054 households in your selected geography. The number of households has changed by 8.39% since It is estimated that the number of households in your area will be 7,200 five years from now, which represents a change of 2.07% from the current year. The average household size in your area is 3.58 persons. Housing The median housing value in your area was $121,302 in 2017, compare this to the US average of $193,953. In 2000, there were 2,709 owner occupied housing units in your area and there were 3,799 renter occupied housing units in your area. The median rent at the time was $386. Income In 2017, the median household income for your selected geography is $30,075, compare this to the US average which is currently $56,286. The median household income for your area has changed by 36.12% since It is estimated that the median household income in your area will be $33,565 five years from now, which represents a change of 11.60% from the current year. Employment In 2017, there are 6,877 employees in your selected area, this is also known as the daytime population. The 2000 Census revealed that 32.24% of employees are employed in white-collar occupations in this geography, and 66.87% are employed in blue-collar occupations. In 2017, unemployment in this area is 24.47%. In 2000, the average time traveled to work was minutes. The current year per capita income in your area is $11,621, compare this to the US average, which is $30,982. The current year average household income in your area is $41,780, compare this to the US average which is $81,217. Source: 2017 Experian 39

40 8 DEMOGRAPHICS 40