1ST AVENUE TOWNHOMES

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1 1ST AVENUE TOWNHOMES st Avenue San Diego, CA For more information contact: # PROPERTY HIGHLIGHTS Heart of Hillcrest Location 93 Walk Score! Significant Rental Upside All ~1,200 SqFt 2Br/1.5Ba Townhomes Private Patios, Parking, W/D in Units Phone: Fax: Garnet Ave, Suite J San Diego, California

2 PROPERTY DESCRIPTION The First Avenue Townhomes property is an amazing opportunity for an investor to invest in an "A" location and via renovations stabilize a property and generate maximum returns. Located in the heart of Hillcrest, a central neighborhood in San Diego County, this address boasts a walk score of 93 which means it is convenient and walking distance to almost everything! The property consists of five 2br/1.5ba townhomes that are approx. 1,200sqft each. Not only is the property full gated, but each unit comes with a parking space and private patio. Four of the five units have washer and dryers in the unit and the fifth units has access to on site laundry facilities. In the last few years, current ownership has replaced the roof (with approx. 16 years left on the warranty), painted the exterior and replaced all of the windows. All units will have leases which convert to month-to-month leases effective June 30th Currently the rents are significantly below market. As-is, each units rent could easily be increased to levels north of $2,000 per month. By modernizing each unit, rents can be increased to $2,800+/mo. There is also a strong short term rental play with these units to really maximize income potential (see rental survey in OM for data on this). Page 2

3 PROPERTY PHOTOS Kitchen Bathroom Entry In Unit Laundry Patio Rear Page 3

4 PRO FORMA SUMMARY UNIT MIX & ANNUAL SCHEDULED INCOME Type Units Actual Total Market Total 2Br/1.5Ba 1 $21,540 $21,540 $33,540 $33,540 2Br/1.5Ba 1 $21,540 $21,540 $33,540 $33,540 2Br/1.5Ba 1 $21,000 $21,000 $33,540 $33,540 2Br/1.5Ba 1 $19,800 $19,800 $33,540 $33,540 2Br/1.5Ba 1 $16,308 $16,308 $33,540 $33,540 TOTALS 5 $100,188 $167,700 INVESTMENT SUMMARY Price: $2,295,000 Year Built: 1953 Units: 5 Price/Unit: $459,000 RSF: 6,000 Price/RSF: $ Lot Size: 6,767 sf Floors: 2 Parking Spaces: 1:2 APN: Cap Rate: 2.39% Market Cap Rate: 5.2% GRM: Market GRM: ANNUALIZED INCOME Description Actual Market Gross Potential Rent $100,188 $167,700 Less: Vacancy ($2,004) ($5,031) Effective Gross Income $98,184 $162,669 Less: Expenses ($43,345) ($43,345) Net Operating Income $54,839 $119,324 ANNUALIZED EXPENSES Description Actual Market Building Insurance $1,250 $1,250 Grounds Maintenance $1,200 $1,200 Maintenance $3,375 $3,375 Management Fees $5,009 $5,009 Misc $550 $550 Reserves $500 $500 Taxes - Real Estate $25,934 $25,934 Trash Removal $912 $912 Utilities $4,615 $4,615 Total Expenses $43,345 $43,345 Expenses Per RSF $7.22 $7.22 Expenses Per Unit $8,669 $8,669 Page 4

5 CASH FLOW ANALYSIS APARTMENT INVESTMENT INFORMATION # Units Address City Zip st Ave San Diego Map Code Price $2,295,000 GRM CAP Rate Current Market Current Market % 5.2% $/Unit $459,000 $/Square Foot Gross Sq. Ft. Parcel Size (Approx.) (Approx.) (Approx.) $ ,767 Yr. Built (Approx.) 1953 Income Detail # Units Type Rent Total Estimated Actual Average Rents Estimated Annual Operating Expenses Rent Range Advertising $0 Management (Off Site) $5,009 Elevator $0 Management (On Site) $0 5 2Br/1.5ba $1359-$1795 $8,349 townhomes Gas & Electric $1,115 Licenses & Fees $50 Water & Sewer $3,500 Miscellaneous $500 Landscaping $1,200 Reserves $500 Trash Removal $912 Pool $0 $0 Pest Control $0 Insurance $1,250 Total Monthly Income $8,349 Maintenance $3,375 Taxes $25,934 Estimated Market Rents Total Annual Operating Expenses (estimated): $43, Br/1.5Ba $2,795 $13,975 Expenses Per: Unit $8,669 % of Actual GSI 43% $0 Total Monthly Income $13,975 Estimated Annual Operating Proforma Financing Summary Actual Market Gross Scheduled Income $100,188 $167,700 Downpayment: $2,295,000 Less: Vacancy Factor 3% $3,006 $5, % Gross Operating Income $97,182 $162,669 Interest Rate: 4.000% Less: Expenses 43% $43,345 $43,345 Amortized over: 30 Years Net Operating Income $53,837 $119,324 Proposed Loan Amount: $0 Less: 1st TD Payments $0 $0 Debt Coverage Ratio: Current: #DIV/0! Pre-Tax Cash Flow $53,837 $119,324 Market: #DIV/0! Cash On Cash Return 2.3% 5.2% Principal Reduction $0 $0 Total Potential Return (End of Year One) 2% 5% Comments / The information contained herein has been obtained from sources believed reliable. While The Browar Group 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.

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9 DEMOGRAPHICS Population Characteristic 1 Mile 3 Mile 5 Mile Ages ,795 29,458 Ages ,974 32,292 Ages ,475 26,651 Ages ,547 24,419 Ages ,328 27,349 Ages ,283 31,577 Ages ,428 14,437 36,012 Ages ,229 17,575 40,173 Ages ,804 19,507 42,142 Ages ,892 19,329 41,194 Ages ,594 17,399 37,092 Ages ,189 14,924 31,891 Ages ,809 12,178 25,944 Ages ,420 9,314 19,943 Ages ,090 6,980 14,738 Ages ,055 10,740 Ages ,587 7,650 Race Characteristic 1 Mile 3 Mile 5 Mile Non Hispanic White 22, , ,068 Population Black ,228 31,272 Population Am In/AK Nat ,043 Household Income 1 Mile 3 Mile 5 Mile Median Household Income $54,859 $50,712 $51,209 < $ ,816 13,512 $10000-$ ,264 14,059 $15000-$ ,135 11,218 $20000-$ ,359 11,577 $25000-$ ,630 10,279 $30000-$ ,099 10,124 $35000-$ ,835 10,350 $40000-$ ,147 10,089 $45000-$ ,469 9,143 $50000-$ ,243 8,257 16,744 $60000-$ ,313 8,929 19,282 $75000-$ ,018 11,221 24,115 $ $ ,091 6,826 14,211 $ $ ,691 8,125 $ $ ,009 8,549 > $ ,185 8,110 Characteristic Housing 1 Mile 3 Mile Housing Units 16, ,428 Occupied Housing Units 15, ,467 Owner Occupied Housing Units 5,060 30,236 Renter Occupied Housing Units 10,532 70,231 Vacant Housing Units 1,153 9,961 Page 9