Multi-Family Offering TH STREET SAN DIEGO, CA Property Highlights:

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1 Multi-Family Offering Property Highlights: Prime Rental-Market Location On-Site Laundry & Parking North of Adams Avenue Ideal For Airbnb Rental Investors Near Local Dining, Bars, & Cafes

2 Property Description: Assessor's Parcel Number Zoning R-4 (Rest. Multiple) Number of Units Five (5) Number of Buildings Two (2) Number of Stories One-Story Year Built 1940 Rentable Square Feet 1,700 Construction: Foundation Concrete Slab Framing Wood Exterior Stucco Parking Surface Concrete Roof Pitched/Shingle Utilities: Water City of San Diego (Owner) Gas SDG&E (Owner) Electric SDG&E (Owner) th Street is a (5) unit multi-family dwelling located in the community of Normal Heights in San Diego, California. Built in 1940, the property consists of two (2) one-bedroom/one-bath units and three (3) studio/one-bath units totaling approximately 1,700 rentable square feet. The two (2) single-story buildings sit on a 5,216 square foot lot and are comprised of wood-frame, stucco exteriors on concrete slab foundations featuring pitched, composite shingle roofs. There is laundry on-site as well as a few select parking spots. The property lies in one of the county s most sought out locations, tucked in a residential setting north of Adams Avenue, while being walking distance to local boutique shopping, restaurants, cafes, bars and entertainment. The offering is ideal for an entry to mid-level investor looking for a project to rehab and stabilize, an owner-user looking to supplement their mortgage, or a saavy investor looking to venture into Airbnb rentals.

3 Market Description: Normal Heights is a close-in submarket that is particularly enjoyed by the younger crowd. Investor interest remains high here, as both buyers and sellers are active trading communities - most often among private parties. Personality, position, and price make the Normal Heights submarket a renter s haven and keep a lid on vacancies. Any vacancy expansion is typically supply-induced, and generally regresses after lease up. Central to this submarket s draw is its walkability, historical relevance, and diversity, making it a target for Millennials. Thanks to ease of access to arterial freeways, residents can reach the employment nodes of Downtown and the Golden Triangle in less than 30 minutes in traffic. From Bankers Hill and Hillcrest to North Park and Kensington, the submarket gives renters their choice of character-laden neighborhoods (assuming availability). Restaurants, shopping, and bars line main thoroughfares, offering residents the ability to park their cars on Friday after work and not move them until Monday morning. In addition, Balboa Park and the San Diego Zoo, both in close proximity, attract residents and tourists throughout the year, adding prestige unmatched by most submarkets in San Diego. Source: Costar

4 Investment Summary: Unit Mix: # of Units Unit Type SF (Approx) Current Monthly Gross Pro Forma Monthly Pro Forma 2* 1BR/1BTH 400 $1,100 $1,100 $1,300 $2,600 3 Studio/1BTH 300 $975-$1100 $4,175 $1,150 $3,450 5 (T) 1,700 $4,175 $6,050 *One (1) 1BR/1BTH is Currently Owner-Occupied Financial Analytics: List Price $950,000 Down Payment (49%) $465,500 Units 5 Price Per Unit $190,000 Building Square Feet 1,700 Price Per Square Feet $ Year Built 1940 Lot Size (Square Feet) 5,216 Current Cap Rate 2.93% Pro Forma Cap Rate 5.23% Current GRM Pro Forma GRM Cash Flow After DS (Current) -0.61% Cash Flow After DS (Pro Forma) 4.08% Total Return (Current) 0.97% Total Return (Pro Forma) 5.65% Loan Terms: First Trust Deed Loan Type New Loan Amount $484,500 LTV 51% Interest Rate 4.85% Amortization (Yrs) 30

5 Investment Summary: Operating Summary: Income Current Pro Forma Gross Potential Rent $50,100 $72,600 (+) Additional Income $0 $0 (=) Gross Potential Income $50,100 $72,600 (-) Vacancy (3%) $1,503 $2,178 (=) Effective Gross Income $48,597 $70,422 (-) Expenses $20,762 $20,762 (=) Net Operating Income $27,835 DCR $49,660 DCR (-) Annual Debt Service $30, $30, (=) CF After Debt Service -$2, % $18, % (+) Principal Reduction $7,344 $7,344 (=) Total Return $4, % $26, % Expenses Real Estate Taxes $11, % $11,112 Insurance $950 $950 Water $1,350 $1,350 SDG&E $3,600 $3,600 Repairs & Maintenance $2,500 $2,500 Reserves/Replacements $1,250 $1,250 Total $20,762 $20,762 % of EGI 42.72% 29.48%

6 On-Market Comparables: 1) 4567 Felton Street San Diego, Ca Sales Price: $1,490,000 Number of Units: 5 Year Built: 1922 Cap Rate: 4.10% GRM: Price/Unit: $298,000 Price/SF: $ Close of Escrow: On-Market Days on Market: 15 Unit Mix: One (1) 2BR/2BTH Three (3) 1BR/1BTH One (1) Studio/1BTH Annual expenses projected at 35% of Effective Gross Income. 2) 4676 Cherokee Avenue San Diego, Ca Sales Price: $1,895,000 Number of Units: 8 Year Built: 1956 Cap Rate: 4.31% GRM: Price/Unit: $236,875 Price/SF: $ Close of Escrow: On-Market Days on Market: 106 Unit Mix: Eight (8) 1BR/1BTH Annual expenses projected at 35% of Effective Gross Income.

7 On-Market Comparables: Cap Rate & GRM 4.21% 15.00

8 On-Market Comparables: Price per Unit & Price per SF $267,438 $532.46

9 In-Escrow Comparables: 1) 3026 Adams Avenue San Diego, Ca Sales Price: $1,785,000 Number of Units: 8 Year Built: 1941 Cap Rate: 3.53% GRM: Price/Unit: $223,125 Price/SF: $ Close of Escrow: SOLD Days on Market: 77 Unit Mix: Eight (8) 1BR/1BTH Annual expenses projected at 35% of Effective Gross Income. JUST SOLD

10 In-Escrow Comparables: Cap Rate & GRM 3.53% 17.87

11 In-Escrow Comparables: Price per Unit & Price per SF $223,125 $557.81

12 Sold Comparables: 1) th Street San Diego, Ca Sales Price: $1,915,000 Number of Units: 8 Year Built: 1959 Cap Rate: 3.10% GRM: Price/Unit: $239,375 Price/SF: $ Close of Escrow: 01/22/2018 Days on Market: 26 Unit Mix: Eight (8) 1BR/1BTH Annual expenses projected at 35% of Effective Gross Income. 2) 4784 Hawley Blvd San Diego, Ca Sales Price: $2,062,000 Number of Units: 7 Year Built: 1986 Cap Rate: 3.15% GRM: Price/Unit: $294,571 Price/SF: $ Close of Escrow: 04/05/2018 Days on Market: 20 Unit Mix: Four (4) 2BR/2BTH One (1) 2BR/1BTH Two (2) 1BR/1BTH Annual expenses projected at 35% of Effective Gross Income. 3) th Street San Diego, Ca Sales Price: $1,304,000 Number of Units: 5 Year Built: N/A Cap Rate: 3.09% GRM: Price/Unit: $260,800 Price/SF: N/A Close of Escrow: 11/27/2017 Days on Market: 14 Unit Mix: Three (3) 2BR/1BTH Two (2) 1BR/1BTH Annual expenses projected at 35% of Effective Gross Income.

13 Sold Comparables: Cap Rate & GRM 3.11% 19.06

14 Sold Comparables: Price per Unit & Price per SF $264,915 $339.42

15 PRICING ANALYSIS: Exclusively Listed By: Berkshire Hathaway Ca Properties 2060 Otay Lakes Road #150 Chula Vista, Ca Telephone: (619) Fax: (619) Ca BRE# Ca BRE# Multi-Family Offering