The Scarsdale Apartments

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1 The Scarsdale Apartments 17 Unit Multifamily Community 125 South 900 East Salt Lake City, Utah Mark Jensen Greg Ratliff

2 THE OPPORTUNITY The Scarsdale Apartments present a solid investment opportunity in the Greater Salt Lake Area s hottest submarkets. The Property is located in a solid, established neighborhood close to both Downtown Salt Lake City and the University of Utah. The Salt Lake Area market is among the most solid of any multifamily markets in the United States from occupancy, rental growth and rising renter demographic standpoints. This market continues to outperform most rental markets in the U.S. with sub-4% vacancies as the new norm. Rental growth is this market is projected to eclipse 10% by year end. By contrast, the Scarsdale Apartments are below market with its competition on rental rates by an average of $125 per unit per month. The Scarsdale provides an opportunistic investor with tremendous long-term opportunity to acquire an established community with signifi cant pride of ownership benefi ts, while increasing revenues in the tightening rental market. THE MARKET Utah continues to be among the nation s leading economies and due to its diversity it is well positioned for several years ahead. Utah continues to rank high across many economic and demographic categories with the Greater Salt Lake Area as a Top-10 Growth Market and ranked #4 by Forbes for one of the best cities for tech jobs. Demand for rental product along the Wasatch Front is outpacing new supply at an almost 2:1 basis between 2010 and And despite new construction, the rental market will continue to tighten in the foreseeable future. THE PROPERTY The Scarsdale features seventeen mixed unit apartments, consisting of one studio, fi fteen one bedroom/one bath and one two bedroom/one bathroom. The average apartment size is approximately 700 square feet, which ideally suites the market s renter demographic. Off-street parking accommodates 17 vehicles, a rarity among the cities competitors. The Property features controlled access and the dwelling units possess a charm that cannot be found by the newer properties in the area.

PROPERTY HIGHLIGHTS 17 Units - One Studio - Fifteen 1 Bedroom & 1 Bathroom - One 2 Bedroom & 1 Bath Located Between Downtown Salt Lake City and the University of Utah Distinctive 1930 s Brick

3 PROPERTY HIGHLIGHTS 17 Units - One Studio - Fifteen 1 Bedroom & 1 Bathroom - One 2 Bedroom & 1 Bath Located Between Downtown Salt Lake City and the University of Utah Distinctive 1930 s Brick Architecture Excellent Upside Opportunity in One of Salt Lake s Strongest Rental Markets Off-Street Parking for 17 Vehicles On-Site Laundry OFFERING SUMMARY Price: $1,650,000 Current CAP Rate: 4.67% Proforma CAP Rate: 5.97% Price Per Unit: $86, Price Per SF: $ Parcel Number: Land Size: 0.3 Acres Below Market Rents

4 FINANCIAL ANALYSIS PROPERTY INFORMATION SUMMARY Parking: 17 Off-Street Square Feet: 11,664 Age: 1931 Utilities: Individually Metered Electricity Paid by Residents; Master Metered Gas; Water, Sewer and Trash Paid by Owner PROPERTY ABSTRACT Number of Units: 17 Age: 1931 Lot Size SF: 13,066 Rentable SF: 11,664 Cost Per Unit: $97,059 ESTIMATED ANNUALIZED OPERATING DATA 2013 Proforma Scheduled Gross Income: $118,998 $147,900 Vacancy: NET / Included $2,958 (2%) Other Income: $0 $7,500 Total Operating Income: $118,998 $152,442 Expenses: $42,011 $54,106 Net Operating Income: $76,987 $98,336 Less Loan Payments: $61,200 $61,200 Pre-Tax Cash Flow: $15,787 $37,136 Pre-Tax Cash Flow: 2.34% 5.51% SOURCE OF INCOME (RENT AND OTHER INCOME) Effective Gross Annual Income: $118,998 NEW DEBT First Loan (60%): $976,400 Rate: 3.9% Term: 25 Years Annual Payment: $61,200 FINANCIAL INDICATORS Price: $1,650,000 Down Payment: $673,600 Down Payment %: 40% Current CAP: 4.67% Proforma CAP: 5.97% Cash on Cash: 2.34% Expenses/Unit/Year $2,471 UNIT MIX UNITS SF Studio Bedroom, 1 Bath (est.) 2 Bedroom, 1 Bath Totals 17

5 PHOTOS

6 RENT ROLL UNIT TYPE RENT UTILITY TOTAL 1 1x1 $ $25.00 $ x1 $ $25.00 $ x1 $ $25.00 $ x1 $ $25.00 $ x1 $ $25.00 $ x1 $ $25.00 $ x1 $ $25.00 $ x1 $ $25.00 $ x1 $ $25.00 $ x1 $ $25.00 $ x1 $ $25.00 $ x1 $ $25.00 $ x1 $ $25.00 $ x1 $ $25.00 $ x1 $ $25.00 $ x1 $ $25.00 $ x1 $ $25.00 $ TOTALS x1 1-2x1 $10, $ $11,150.00

7 SITE N 900 East

8 SALT LAKE CITY ATTRACTIONS N Victory Road 600 North UTAH STATE CAPITOL LDS HOSPITAL 80 ENERGYSOLUTIONS ARENA THE GATEWAY SALT LAKE LDS TEMPLE SALT LAKE CITY & COUNTY BUILDING 400 Sou th CITY CREEK CENTER 700 Ea st 500 Sou th South Temple TROLLEY SQUARE UNIVERSITY MEDICAL CENTER 500 Sou th UNIVERSITY OF UTAH 800 Sou th SALT LAKE CITY LIBRARY THE LEONARDO SALT LAKE CITY PUBLIC SAFETY BUILDING Sunn ys ide Av en ue California Ave nue 900 Wes t 300 West State S tre et 500 Ea st 900 Ea st E ast E ast S outh E ast Footh ill Drive

9 RECENT SALE COMPARABLES 600 North 11th Ave nue Vict ory Road N North 200 West $786,500 $87,389/Unit 5.77% Cap Rate 277 North Center Street $825,000 $68,750/Unit 6.15% Cap Rate Liberty Apartments 1140 South 500 East $1,150,000 $95,833/Unit 6.21% Cap Rate The Scarsdale Apartments 125 South 900 East Broadway Apartments 440 East 300 South $4,700,000 $84.95/Unit 5.98% Cap Rate University Gardens 1151 East 100 South $5,612,750 $86,350/Unit 6.04% Cap Rate South Temple 400 Sou th 200 Sou th 100 Sou th 300 West 800 Sou th 900 Wes t S outh 300 Ea st E ast 900 E a st State S tre et 500 Ea st We st Te mple Ma in Stree t 700 Ea st E ast 400 West 300 North 3rd Av enu e North Te mp le 2nd Ave nue 200 West E Street I S tre et Wes t 200 Ea st B Stre et Wakara Wa y 500 Sou th 600 Sou th 500 Sou th Foot hi ll Drive Sunn ys ide Av en ue Guards man Wa y 900 Sou th E ast California Ave nue 800 Sou th 89

RENT SURVEY PROPERTY UNIT TYPE UNIT SF RENT RENT/SF NOTES SUBJECT Scarsdale Apartments 125 South 900 East Salt Lake City, Utah 84102 1 - Studio 15-1x1

88 Units: 17 Water, Sewer, and Trash: $25 Pet Friendly: No Charge Occupancy: 100% East Point Apartments 133 South 900 East Salt Lake City, Utah 84102

08 Units: 24 Water, Sewer, and Trash: $30 Pet Friendly: $25 a Month Parking: No Charge, 1 Spot Per-Unit 4 Spots are Covered Storage Units: 24 (Roughly

) Included in the Rent Occupancy: 95% Cedar Cliff Apartments 250 South 900 East Salt Lake City, Utah 84102 12-1x1 15-2x2 18-2x2 2-2x2 600 750 850 900

92 Units: 47 Water, Sewer, and Trash: Included in Rent Parking: 1 Per Unit Covered & Reserved $15 a Month Occupancy: 97% Devereaux Apartments 130

10 RENT SURVEY PROPERTY UNIT TYPE UNIT SF RENT RENT/SF NOTES SUBJECT Scarsdale Apartments 125 South 900 East Salt Lake City, Utah Studio 15-1x1 1-1x $ $ $ $1.72 $0.89 $0.88 Units: 17 Water, Sewer, and Trash: $25 Pet Friendly: No Charge Occupancy: 100% East Point Apartments 133 South 900 East Salt Lake City, Utah x1 6-2x $ $ $ $1.08-$1.16 $1.08 Units: 24 Water, Sewer, and Trash: $30 Pet Friendly: $25 a Month Parking: No Charge, 1 Spot Per-Unit 4 Spots are Covered Storage Units: 24 (Roughly 48Cubic ft.) Included in the Rent Occupancy: 95% Cedar Cliff Apartments 250 South 900 East Salt Lake City, Utah x1 15-2x2 18-2x2 2-2x $ $ $ $ $ $ $ $1.08-$1.13 $0.95-$0.99 $0.87-$0.91 $0.92 Units: 47 Water, Sewer, and Trash: Included in Rent Parking: 1 Per Unit Covered & Reserved $15 a Month Occupancy: 97% Devereaux Apartments 130 South 900 East Salt Lake City, Utah 19-1x1 10-2x2 1-3x ,000 1,500 $ $ $ $0.81 $0.75 $0.53 Units: 30 Water, Sewer, and Trash: Covered in Rent Pet Friendly: No Charge Parking: 1 Per Unit Covered in Rent Occupancy: 100% Commodore Apartments 1107 East South Temple Salt Lake City, Utah 1-1x1 13-3x2 1-2x ,400 1,100 $ $1, $ $0.85 $0.81 $0.75 Units: 15 Water, Sewer, and Trash: $35 Gas: $65 Pet Friendly: $300 Deposite & $25 a Month Parking: $20 a Month Also there is Road Parking Occupancy: 100%

4 UNIT MULTIFAMILY INVESTMENT PROPERTY 653 S 800 E, Salt Lake City, UT

4 UNIT MULTIFAMILY INVESTMENT PROPERTY 653 S 800 E, Salt Lake City, UT Á ^ INVESTMENT DRIVERS Offers investors a 7.3% Cap Rate / 17.6% Return in a trophy 9th & 9th location Upside through renovation; Unit