1300 El Camino Real. Millbrae, CA OFFERING MEMORANDUM

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1 OFFERING MEMORANDUM 1300 El Camino Real Millbrae, CA DON SUNG Associate Vice President CA License No

2 FINANCIAL ANALYSIS & PRICING Offering Details INVESTMENT SUMMARY Price: $6,680,000 Year Built: 1966 Units: 18 Price/Unit: $371,111 UNIT MIX & ANNUAL SCHEDULED INCOME Type Units Actual Total Market Total 1 BR / 1 BA 4 $16,875 $67,500 $25,200 $100,800 2 BR / 1 BA 14 $19,071 $267,001 $30,643 $429,000 TOTALS 18 $334,501 $529,800 RSF: 14,983 Price/RSF: $ Lot Size: 20,125 sf Floors: 3 Parking Spaces: 1:1 APN: Cap Rate: 2.47% Market Cap Rate: 5.59% GRM: Market GRM: FINANCING SUMMARY ANNUALIZED INCOME Actual Market Gross Potential Rent $334,501 $529,800 Less: Vacancy ($10,035) $0 Misc. Income $4,320 $12,960 Effective Gross Income $328,786 $542,760 Less: Expenses ($163,544) ($169,448) Net Operating Income $165,242 $373,312 Debt Service ($155,492) ($155,492) Net Cash Flow after Debt Service $9,750 $217,820 Principal Reduction $56,035 $56,035 Total Return $65,785 $273,855 Loan Amount: $2,900,000 Down Payment: $3,780,000 Loan Type: Fixed Interest Rate: 3.46% Term: 30 years Monthly Payment: $12,958 DCR: 1.06 ANNUALIZED EXPENSES Actual Market Property Tax $77,353 $77,353 Insurance $6,247 $6,247 Management Fee $9,990 $15,894 Water, Sewer $26,466 $26,466 Garbage $15,288 $15,288 PG & E $12,000 $12,000 Pool Maintenance $1,800 $1,800 Repairs & Maintenance $9,000 $9,000 Reserves & Replacements $5,400 $5,400 Total Expenses $163,544 $169,448 Expenses Per RSF $10.92 $11.31 Expenses Per Unit $9,086 $9,414

3 FINANCIAL ANALYSIS SECTION & PRICING Unit Rent Roll Unit Description Approx. Sq. Ft. Current Rent Pro Forma Rent Comments 1 2 BR / 1 BA 832 $1,650 $2,500 Updated Kitchen, Windows, Patio Doors, Wood Flooring 2 2 BR / 1 BA 832 $1,625 $2,500 Updated Kitchen, Windows, Patio Doors, Wood Flooring 3 1 BR / 1 BA 756 $1,425 $2,200 Updated Kitchen, Windows, Patio Doors, Wood Flooring 4 2 BR / 1 BA 882 $1,400 $2,500 Original, Carpets 5 2 BR / 1 BA 936 $2,100 $2,650 Updated Kitchen, Windows, Patio Doors, Wood Flooring 6 1 BR / 1 BA 592 $1,275 $2,000 Original. Corner Unit 7 1 BR / 1 BA 832 $1,400 $2,200 Updated Kitchen, Windows, Patio Doors, Wood Flooring 8 2 BR / 1 BA 832 $1,450 $2,500 Original, Carpets 9 2 BR / 1 BA 832 $1,700 $2,500 Updated Kitchen, Windows, Patio Doors, Wood Flooring 10 1 BR / 1 BA 592 $1,525 $2,000 Updated Kitchen, Windows, Patio Doors, Wood Flooring 11 2 BR / 1 BA 936 $1,500 $2,650 Original, Carpets 12 2 BR / 1 BA 936 $1,650 $2,650 Updated Kitchen, Windows, Patio Doors, Wood Flooring 13 2 BR / 1 BA 936 $1,800 $2,650 Updated Kitchen, Windows, Patio Doors, Wood Flooring 14 2 BR / 1 BA 825 $1,850 $2,500 Updated Kitchen, Windows, Patio Doors, Wood Flooring 15 2 BR / 1 BA 936 $1,525 $2,650 Updated Kitchen, Windows, Patio Doors, Wood Flooring 16 2 BR / 1 BA 832 $700 $2,500 Onsite Mgr - Updated Kitchen, Windows, Patio Doors, Wood 17 2 BR / 1 BA 832 $1,500 $2,500 Updated Kitchen, Windows, Patio Doors, Wood Flooring 18 2 BR / 1 BA 832 $1,800 $2,500 Updated Kitchen, Windows, Patio Doors, Wood Flooring

4 FINANCIAL ANALYSIS & PRICING Unit Mix Report UNIT MIXES Units Type Approx. SqFt Avg. Rents Monthly Mkt Rents Monthly 4 1 BR / 1 BA 693 $1,406 $5,625 $2,100 $8, BR / 1 BA 872 $1,589 $22,250 $2,554 $35, ,980 $27,875 $44,150 UNIT MIX UNIT MIX SQUARE FEET 1 BR / 1 BA 2 BR / 1 BA 1 BR / 1 BA 2 BR / 1 BA UNIT MIX INCOME UNIT MIX MARKET INCOME 1 BR / 1 BA 2 BR / 1 BA 1 BR / 1 BA 2 BR / 1 BA

5 Property Highlights LOCATION: 1300 El Camino Real, Millbrae, CA > Rarely Available, Pride of Ownership, 18-Unit Property in the Heart of Millbrae - Low Velocity Market > Excellent, AAA Location in Central Millbrae. Walking Distance to Shopping, Dining, Entertainment, and Transportation > Attractive Unit Mix: Fourteen (14) 2 BR/1 BA Units and Four (4) 1 BR/1 BA Units - Extremely Spacious/Oversized Units > Turnkey: 14 of 18 (78%) Units have Updated Kitchens, New Patio Doors, Wood Flooring, and Dual Pane Windows > Strong Historical Tenancy with Below Market Rents and Tremendous Upside Potential. No Rent Control.

6 Property Summary Pride-of-Ownership, 18-Unit Apartment in Core Millbrae Spacious Units With Excellent Mix - Tremendous Potential Colliers International is pleased to present 1300 El Camino Real, an extremely well-maintained, pride-ofownership, 18-unit apartment property located in the heart of Millbrae, walking distance to the shops on Broadway, as well as providing easy acess to Millbrae BART and Caltrain stations. Built in 1966 of wood-frame and exterior stucco construction, the subject property consists of an excellent mix of Fourteen (14) 2 BR/1 BA and Four (4) 1 BR/1 BA apartment units. Each unit offers spacious living area ranging from 700 SF to 950 SF, totaling approximately +/- 14,983 SF of rentable living space. Per San Mateo County Assessor's Office, the property has 18,680 of building area situated on a 20,125 SF lot. Majority of the units enjoy wood flooring with updated kitchens. Top floor units also feature skylights, providing additional rental appeal. Many units also feature new dual pane windows and new patio slider windows. Upstairs tenants enjoy the convenience of a garbage chute disposal. The property features 18 covered carport parking spaces and 6 overflow outdoor parking spaces, totaling 24 parking spaces. The property also features 14 balconies, plus numerous locked storage units - providing additional potential income. The property also features two coin-operated laundry center (Washer/Dryers are Owned, Not Leased) located on 2nd & 3rd floors, and they provide tenants with good convenience and offer buyers with additional cashflow. Prospective Buyers can explore implementing Ratio Utilities Billing Systems (RUBS) to further increase overall Net Operating Income (NOI). The property also features an outdoor swimming pool, plus a picnic/bbq entertainment area for tenant enjoyment - adding to rental appeal. The property shows good pride-of-ownership, and the owner has taken excellent care of the property and has diligently completed ongoing interior and exterior renovation - providing incoming buyers with a turn-key property. The subject property provides easy access to major public transportation such as: Millbrae BART & Caltrain stations, as well as SamTrans. The property is also in close proximity to shopping, dining, and entertainment nearby. Tenants also enjoy easy access to El Camino Real, 101, 92, and 280. The property boasts close proximity to several of the Bay Area's top employers such as Genentech, Salesforce, San Francisco International Airport, Visa, Oracle, just to name a few. The property also offers convenient access to San Francisco - providing an excellent alternative to San Francisco renters in search of spacious suburban living, good public schools, and easy access to amenities & major employers.

7 FINANCIAL ANALYSIS SECTION & PRICING Investment Details ANALYSIS Analysis Date July 2015 Scenario OM PROPERTY Property 1300 El Camino Real Property Address 1300 El Camino Real Millbrae, CA Year Built 1966 PURCHASE INFORMATION Property Type MultiFamily Purchase Price $6,680,000 Units 18 Total Rentable Sq. Ft. 14,983 FINANCIAL INFORMATION Down Payment $3,780,000 LOANS Debt Term Amortization Rate Payment LO Costs Fixed $2,900, years 30 years 3.46% $12,958 INCOME & EXPENSES Gross Operating Income $328,786 Monthly GOI $27,399 Total Annual Expenses ($163,544) Monthly Expenses ($13,629) CONTACT INFORMATION Don Sung CA

8 PROPERTY SECTION DESCRIPTION Property Aerial 1300 El Camino Real

9 Regional Map 1300 El Camino Real Local Map 1300 El Camino Real

10 PROPERTY DESCRIPTION Tax Map

11 Property Map 1300 EL CAMINO REAL PROPERTY MAP 3rd Floor Drawings Not Exact, Not to Scale The information furnished has been obtained from sources we deem reliable and is submitted subject to errors, omissions and changes. Although Colliers International has no reason to doubt its accuracy, we do not guarantee it. All information should be verified by the recipient prior to lease, purchase, exchange, or execution of legal documents Colliers International

12 Floor Plans Apartment #3 ±745 SF MINO REAL PROPERTY Apartment #4 ±795 SF (APPROX. 795 SQF)

13 Floor Plans Apartment #7 ±635 SF NO REAL PROPERTY Apartment #10 ±760 SF (APPROX. 635 SQF) (APPROX. 760 SQF)

14 Floor Plan Apartment #13 ±845 SF (APPROX. 845 SQF)

15 Floor Plan Apartment #14 ±830 SF

16 Floor Plan Apartment #18 ±780 SF (APPROX. 780 SQF)

17 For more information, please contact: DON SUNG Associate Vice President CA License No Redwood Shores Parkway, Suite 125 Redwood City, CA OFC FAX colliers.com/redwoodcity This document has been prepared by Colliers International for advertising and general information only. Colliers International makes no guarantees or representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquires as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied terms, conditions and warranties arising out this document and excludes all liability for loss and damages arising there from. This publication is the copyrighted property of Colliers International and/or its licensor(s).