17 Beautiful Garden Apartments Foothill Square Apartments MacArthur Boulevard Oakland, CA Below Market Price: $ 3,366,000

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1 Introducing 17 Beautiful Garden Apartments Foothill Square Apartments MacArthur Boulevard Oakland, CA Below Market Price: $ 3,366,000 Located on the San Leandro Border $143,388 or 40% immediate Upside in Annual Rents Located in the Nation s Fastest Growing Rental Market Market Cash on Cash 14.4% Market Cap Rate 8.3%; Existing Cap Rate 4% Market GRM- 9.2; Existing GRM- 15 Clear Section 1 and Section 2 Pest Clearances Great Add Value Investment Huge Value Upside Hot and thriving Foothill Square Neighborhood High growth city influencing great appreciation potential No Deferred Maintenance Strong Rent Upside! Trouble free income, management and tenants! Great Investment- Short or Long Term For more information about this fabulous opportunity: Please call Fred Lewis at (209) Visit: info@hotdealsoakland.com

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4 Foothill Square Apartments MacArthur Boulevard Oakland, CA Price: $3,366,000 Down Payment: $998,000 Existing Capitalization Rate: 4% Market Cap Rate 8.3% Existing Gross Rent Multiplier: 15 Market GRM: 9.1 Cost Per Unit $198,000 Market Cash on Cash 14.4 Complex Description: Assessor s parcel Number: MacArthur Boulevard is a garden apartment complex in the Foothill Square and Mosswood neighborhood in Oakland MacArthur Boulevard has a mix of (1) Studio, (13) 1 bedroom/ 1 Bathroom and (2) 2 bedroom/1 bathroom units (1) potential 3 bedroom unit. All apartments have separate hot water heaters, gas and electric meters to lower owners expenses. Seven units at MacArthur Garden Apartments have been substantially rehabilitated to include hardwood floors, new appliances, garbage disposals, granite countertops, tile backsplashes, tile bathrooms, kitchen floors, tile tub surrounds, a tasteful 4-color paint combination inside 6 colors on the exterior, new finish electrical and plumbing to include sinks and fixtures, heaters, lighting, and cabinets. Several other units have a light amount of renovation done. This garden apartment complex sits on a 0.3 acre lot. The subject property presents an opportunity for an investor to acquire a well located property in a highly redeveloped area. Just a couple block from MacArthur Boulevard is the brand new $45 million Foothill Square development that also borders San Leandro. The 200,000 square foot contemporary urban mixed use, life-style center is anchored by Foods Co., a supermarket run by the Kroger Company, America s largest supermarket chain. The mixed use development includes retail, medical/day-care, office and residential uses. Other retail tenants will include Ross Dress For Less, Anna s Linens, and a Wells Fargo. The sewer lateral has been completed. Complex Potential: There is $143,88 or 40% of immediate annual upside in the rents. The apartment community has many shorter term tenancies, that upon turnover, may be rented at full market rents with cosmetic improvements to maximize rental return. In addition, as the longer term tenancies turn over, the increased return will also be substantial. Units are separately metered for gas & electric and the property has 16 parking spaces. The complex is 2 blocks from the popular Foothill Square Shopping Center and a few more blocks from San Leandro. Rent Trends: As of September 2017, the average apartment rent in Oakland is $1,316 for a studio, $1,660 for one bedroom, $2,122 for two bedrooms, and $2,548 for three bedrooms. Apartment rent in Oakland has increased by 3.8% in the past year. Pest clearance: There is a clear Section 1 and Section 2 Pest Clearance on the subject property. The building is clean as a whistle. The above income and expenses are only estimates. Although the information contained herein is deemed reliable, no representations of any kind, expressed or implied, are being made as to the accuracy of such information. All of the data in this prospectus are estimates and approximations to include square footage. Any prospective purchaser and their tax and legal advisor should carefully verify all information contained herein and conduct an independent investigation. Seller bears no liability of any errors, inaccuracies or omissions.

5 10320 MacArthur Boulevard Oakland, CA Area Description: While shipping is still a major part of the local economy, Oakland is home to the corporate headquarters for everything from established consumer brands to younger tech businesses. The cultural diversity of the city is vast, meaning that it s easy to find art, food, and people from every corner of the world by just walking down the street. California College of the Arts brings a creative streak to the community, which is reflected in the eclectic shops and cafes along College Avenue; In the Mosswood area, an eclectic mix of coffee houses, taverns, arts centers, and international restaurants line Telegraph Avenue, which runs all the way up to the UC Berkeley campus. Oakland is also home to famous tourist attractions that are well worth your time as well, including the Oakland Zoo, the Oakland Art Museum, and East Bay regional Park. Nearby schools include Cox Academy, Independent Study, Sojourner Truth School and Alternative Learning Community Middle School. The closest grocery stores are Oaks Market, Foods Co and Macarthur foothill market. Nearby coffee shops include Island Cafe at the Oakland Zoo, Ol' Yeller Cafe 'N' Market and Oriental Tea House. Nearby restaurants include AMPM, Happy Hot Dog and Lucky Express MacArthur Boulevard is near Verdese Carter Park, Verdese Carter Park and Knowland Park. There are some bike lanes and the terrain has some hills MacArthur Boulevard is somewhat bikeable, there is minimal bike infrastructure.. Hottest Apartment Market in the Country: The bay Area continues to lead the nation s apartment market in rent growth. According to MPF Research, during the first quarter of 2015, Oakland saw year-over-year rent growth of 14.1%. Compelling Multifamily Fundamentals: There are high barriers to entry and few large sites for development in the Oakland region. Vacancy rates in the area remain at historic laws, and rental rates continue to rise. Commission Owner is a principal and not a broker. A selling commission of 3% will be paid for the procurement and actual consummation of the transaction. A higher commission can be negotiated if multiple brokers are involved. Two 30day extensions need to be included in the agreement as seller is completing a 1031 exchange. The above income and expenses are only estimates. Although the information contained herein is deemed reliable, no representations of any kind, expressed or implied, are being made as to the accuracy of such information. All of the data in this prospectus are estimates and approximations to include square footage. Any prospective purchaser and their tax and legal advisor should carefully verify all information contained herein and conduct an independent investigation. Seller bears no liability of any errors, inaccuracies or omissions.

6 About Oakland, California Oakland is the seventh largest city in the state of California with a population of 400,000 people and covers 54 square miles. Oakland has had a rent increase of 11.6% with a vacancy rate of 1.7%. The current median monthly rent for Oakland is $2, Oakland s rent increase has been partially fueled by renters priced out of the San Francisco rental market. Oakland is a major West Coast port, and there are nearly 200,000 jobs related to marine cargo transport. These jobs range from minimum wage hourly positions to Transportation Storage and Distribution Managers who earn an annual average salary of $91,520. Forbes Magazine listed Oakland as one of the Top 10 Places for business and employment. The city is home to several major corporations including Matson, Kaiser Permanente and Clorox, as well as corporate headquarters for national retailers like Dreyer s and Cost Plus World Market. Tech companies such as Ask.com and Pandora Radio are located in Oakland, and in recent years many start-up high tech and green energy companies have found a home in the downtown neighborhoods of Uptown, City Center, Jack London Square and Lake Merritt Financial District. The Port of Oakland is one of the five largest container ports in North America and one of the top 20 worldwide. Oakland is the only city in California with three professional sports teams: the Oakland Raiders, the Oakland Athletics, and the Golden State Warriors. Recently ranked by Movoto.com, Oakland is one of the most exciting cities in America on its roster of the The 10 Most Exciting Cities in America. According to the New York Times. Oakland ranked as the 5 th most desirable destination to visit this year in The 45 Places to Go. In the past decade, Oakland has ranked among the top cities for business in Forbes and other publications. As part of the ninth largest regional economy in the United States with a Gross Regional Product exceeding $200 billion, Oakland boasts a strong and diverse business environment. This diversity allows Oakland to remain stable even during economic downturns. The Gross Metropolitan Product (GMP) for Oakland ranks in the top 20 metropolitan economies in the United States and among the top 60 in the world. Oakland s GMP ranks higher than the GMP for San Jose, St. Louis, Sacramento, Pittsburgh and Cleveland and also exceeds the Gross National Product of Hungary, Columbia, Singapore and the Philippines. Oakland s GMP also eclipses the Gross State Product of Nevada, Oklahoma and Kansas. In recent years, Oakland has gained national recognition as a travel destination. In 2012, Oakland was named the top North American city to visit, highlighting its growing number of sophisticated restaurants and bars, top music venues, and increasing nightlife appeal. Oakland also took the No. 16 spot in America s Coolest Cities, ranked by metrics like entertainment options and recreational opportunities per capita, etc. In 2013, Oakland topped the No. 1 spot in America s Most Exciting Cities, notably having the most movie theaters, theater companies, and museums per square mile. In America s Most Hipster Cities, Oakland took the No. 5 spot, cited for luring San Francisco hippies into the city. Since owner has not owned property stabilized for more than 1 year, the above income and expenses are only estimates. Although the information contained herein is deemed reliable, no representations of any kind, expressed or implied, are being made as to the accuracy of such information. All of the data in this prospectus are estimates and approximations to include square footage. Any prospective purchaser and their tax and legal advisor should carefully verify all information contained herein and conduct an independent investigation. Seller bears no liability of any errors, inaccuracies or omissions.

7 Annual Property Operating Data PURPOSE: Property Analysis PRICE: $ 3,366,000 NAME: Foothill Square Apartments DOWN PAYMENT: $ 998,000 LOCATION: TYPE OF PROPERTY: MacArthur Boulevard Oakland, CA (17) Unit Apartment Building ASSESSED APPRAISED VALUES LAND: 20% $ 665,000 IMPROVEMENTS: 78% $ 2,641,000 PERSONAL PROPERTY: 2% $ 60,000 TOTAL $ 3,366,000 PROPOSED: 1ST 70 % LTV 4% 30 years $11,305 Monthly Payment EXISTING MARKET GROSS RENTAL INCOME $ 221,952 $ 363,900 Laundry $ 1,800 $ 1,800 TOTAL GROSS OPERATING INCOME $ 223,752 $ 365,700 LESS OPERATING EXPENSES Vacancy $ 4,453 $ 4,453 Property Insurance $ 8,237 $ 8,237 Real Estate Taxes $ 41,410 $ 41,410 Resident Manager $ 6,000 $ 6,000 Repairs & Maintenance $ 4,800 $ 4,800 Business Tax $ 1,400 $ 1,400 Rap Fee $ 1,156 $ 1,156 SERVICES Rubbish $ 11,044 $ 11,044 UTILITIES Electric & Gas $ 1,816 $ 1,816 Water & Sewer $ 11,288 $ 11,288 Telephone $ 600 $ 600 TOTAL OPERATING EXPENSES (40% Expenses) NET OPERATING INCOME LESS: TOTAL ANNUAL DEBT SERVICE CASH FLOW $ 87,751 $ 87,751 $ 136,001 $ 277,949 $ 135,660 $ 135,660 $ 341 $ 142,289 The above income and expenses are only estimates. Although the information contained herein is deemed reliable, no representations of any kind, expressed or implied, are being made as to the accuracy of such information. All of the data in this prospectus are estimates and approximations to include square footage. Any prospective purchaser and their tax and legal advisor should carefully verify all information contained herein and conduct an independent investigation. Seller bears no liability of any errors, inaccuracies or omissions.

8 Summary Rent Roll Foothill Square Apartments Property Address: Macarthur Boulevard Oakland, CA Unit Unit Current Market # Mix Rent Rent 24 1/1 $925 $1, /1 $1,120 $1, /1 $1,321 $1, /1 $793 $1, /1 $1,995 $1, /1 $687 $1, /1 $1,600 $1, /1 $1,321 $1, /1 $714 $1, /1 $634 $1, /1 $1,725 $1, /1 $793 $1, /1 $943 $1, /1 $634 $1, S/1 $529 $1, /1 $1,381 $1, /1 $1,381 $1,725 Laundry $150 $ Units $18,645 $30,325 The above income and expenses are only estimates. Although the information contained herein is deemed reliable, no representations of any kind, expressed or implied, are being made as to the accuracy of such information. All of the data in this prospectus are estimates and approximations to include square footage. Any prospective purchaser and their tax and legal advisor should carefully verify all information contained herein and conduct an independent investigation. Seller bears no liability of any errors, inaccuracies or omissions.

9 Subject Property Address # of Units Sales Comparables Unit Mix Sales Price Cost Per Unit GRM CAP Close of Escrow MacArthur Boulevard Oakland, CA Studio 12-1/1 4-2/1 1-3/1 $ 3,366,000 $ 198, % Active 9849 MacArthur Boulevard Oakland, CA /2 $4, $450, % Active 6137 MacArthur Boulevard Oakland, CA /1 $1,400,000 $280, /5/17 55 Marlow Drive Oakland, CA $1,300,000 $216,667 12/20/ Cary Ave. Oakland, CA /1 $1,278,000 $182,571 7/10/17 Since owner has not owned property stabilized for more than 1 year, the above income and expenses are only estimates. Although the information contained herein is deemed reliable, no representations of any kind, expressed or implied, are being made as to the accuracy of such information. All of the data in this prospectus are estimates and approximations to include square footage. Any prospective purchaser and their tax and legal advisor should carefully verify all information contained herein and conduct an independent investigation. Seller bears no liability of any errors, inaccuracies or omissions.

10 Rent Comparables Surveyed Property Studio 1 Bedrooms 2 Bedrooms 2344 E 17th Street Oakland, CA $529 $634-$1321 $793-$ Greenridge Drive Oakland, CA $1595-$ Greenridge Drive Oakland, CA $1595-$ B Street #B Oakland, CA $1, Walnut Street Oakland, CA $1, Cherry Street Oakland, CA $2, Sheldon Street Oakland, CA $2, nd Street Oakland, CA $2,175 Since owner has not owned property stabilized for more than 1 year, the above income and expenses are only estimates. Although the information contained herein is deemed reliable, no representations of any kind, expressed or implied, are being made as to the accuracy of such information. All of the data in this prospectus are estimates and approximations to include square footage. Any prospective purchaser and their tax and legal advisor should carefully verify all information contained herein and conduct an independent investigation. Seller bears no liability of any errors, inaccuracies or omissions.

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