SOUTH BAY AND SOUTHERN CITIES APARTMENT MARKET UPDATE JANUARY 2017 JUST LISTED. 28 Units Los Angeles 28 Studios, No Rent Control $2,800,000

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1 SOUTH BAY AND SOUTHERN CITIES APARTMENT MARKET UPDATE JANUARY 2017 JUST LISTED PERSONAL PERSPECTIVE FOR SALE: TRUTHFUL RESPONSIBLE UNPARALLELED SERVICE WHICH IS WORTHY 28 Units Los Angeles 28 Studios, No Rent Control $2,800,000 There is lack of inventory, but many buyers! A lot o line ready to be deployed for the right opportunitie WASCO PARK 24 UNIT WITH HAP 651 Beckes Street Wasco, CA sector. The latest housing report from California As (CAR) suggests a downward trend in prices. As the 4 Units Hawthorne CONTRACT 2-2/1; 2-1/1, 14,500+ Lot size $795,000 up steam, interest rate expected to be on the rise, leveled off, many investors are planning to reasses holdings. Should you be one of those and wanted curb, I would like to offer you the value analysis fo AVAILABLE ing properties at FREE of charge! This will give yo 8 Units Wilmington 8-1/1 Asking $125,000 per unit know the value of your property(s) and recognize w are ready! I will need your current rent roll & expen Asking Price: $2,760, Units Bakersfield 5-3/1; 15-2/1, 100% HAP Contract Asking $125,000 per unit INVESTMENT HIGHLIGHTS 23 units HAP project base and 1 three (3) bed HAPPY NEW YEAR! room conventional multi-housing; Total 24 Should you consider selling or would like a market value of units your property at FREE of charge, (Subject to rent roll and expenses) Please call me at: or 2203 W 190th Street Torrance, CA Stable and predictablewww.cbcjm.com income and cash flow backed by the full faith and credit of the United States Government Excellent unit mix: 8-3 bed 1.5 bath (HUD subsidized);15-2 bed 1 bath (HUD subsidized), and 1-3 bed 1.5 bath conventional Nice, clean newer, and growing city of Wasco which is 25 miles north-west of Bakersfield In an approximately 60 days rental income shall increase an additional 4%+ straight across FOR MORE INFO, CONTACT: Well maintained and turn Key operation 1 Ex

2 PROPERTY DESCRIPTION: Wasco Park Apartments is a 24-unit, two-story garden-style, four separate buildings located 25 miles northwest of downtown Bakersfield, California. Built in 1982, the property consists of five wood-frame constructed buildings, with durable stucco exteriors, and pitched roofs with composition shingles. It is nicely landscaped with manicured grass areas, mature shade trees, and trimmed shrubs. The property s consists of 15-2 bedrooms 1 bathroom units of 871 SF and 9-3 bedrooms 1.5 bathroom units of 1,104 SF. Average unit size is 958 SF. All of the units are subject to a HUD recorded use agreement except for one conventional three-bedroom unit (Unit #12), whose rent is subject to market rate pricing. THE OPPORTUNITY: A 24 unit, the Wasco Park Apartments offering affords an investor a stable and predictable income and cash flow backed by the full faith and credit of the United States government. The property is encumbered by a 30-year use agreement for Multifamily Projects Participating in the Mark-to-Market Program under the Multifamily Assisted Housing Reform and Affordability Act (MAHRA) of The property is also encumbered by a 20-year, Project-based Section 8 Housing Assistance Payment (HAP) Contract from the U.S. Department of Housing and Urban Development. This contract, Section 8 Project is administered by the LA Multifamily HUD hub and affects 23 of the property s 24 units (one three-bedroom unit is exempt). The property s FMR (fair market rents) are set annually through Automatic OCAF (operating cost adjustment factor) with an effective renewal date of January Ist of each calendar year. The property is subject to terms stipulated in the recorded HUD Mark-to-Market use agreement. BROKERS OPINION; This great offering appeals to investors looking for an excellent desirable location, well maintained asset, turned key operation, stable and predictable income and cash flow backed by the full faith and credit of the United States Government and minutes from freeway access. Stable tenancy and excellent collection record made this property a very profitable and attractive investment opportunity in this limited inventory market. Motivated seller! An unequivocally great property for a long-term investor! Lets move forward without hesitation! Please coordinate property tours with the listing agent, Abu NOTE: 20 UNITS IN BAKERSFIELD AND THIS 24 UNITS IN Wasco owned by the same owner and can be purchased as a package! 2

3 FOR SALE: PARK SOUTH BAY ANDWASCO SOUTHERN CITIES 24APARTMENT UNIT WITH MARKET HAP CONTRACT UPDATE JANUARY 2017 JUST LISTED PERSONAL PERSPECTIVE TRUTHFUL There is lackemployers of inventory,inbut many buyers! A lot o 28 UnitsPark LosApartAngeles distribution. The LOCATION DESCRIPTION: Wasco largest Kern County RESPONSIBLE ments is located near the intersection of Beckes include: Edwards Air Force Base County Kern, line ready to be deployed for theof right opportunitie 28 Studios, No Rent Control UNPARALLELED Street and 7th Street. The property is in close proxchina Lake Weapons Grimmway Farms, sector. TheStation, latest housing report from California As $2,800,000 SERVICE WHICH IS imity of Golden State HWY 99 and just off of State Guimaraes Vineyards, Mercy and Memorial (CAR) suggests a downward trend Hospiin prices. As the WORTHY Route 46, which facilitates easy4access restautals, Bolt House Farms, Inc., San Joaquin Hospital, Units to Hawthorne up steam, interest rate expected to be on the rise, rants, shopping centers, and recreation andleveled City ofoff,bakersfield. Over 179 busi2-2/1; 2-1/1,facilities 14,500+ LotChevron, size many investors are planning to reasses within minutes. Located nearby $795,000 are Cormack Park nesses are located in ZIP Code 93280, employholdings. Should you be one of those and wanted and Wasco Recreation Ballpark, which provide ing approximately 1,914. Kern County s population curb, I would like to offer you the value analysis for open spaces and sports fields for neighborhood is expected to reach 918,800 by 2020, growing ing properties at FREE of charge! This will give yo residents. Home to approximately 22,863 square more than 5.3% over the next five years, exceed8 Units Wilmington know the value recognize w feet residents, the city of Wasco is located 25 ing the national growth rateofofyour 3.7%property(s) over theand same arethree ready!miles I will need your current roll & expen miles northwest of Bakersfield, 8-1/1 California in Kern period. Within of Wasco Park rent ApartAsking $125,000 County. The city is known for producing 55% of allper unit ments, the median household income is projected ABU MAJUMDER roses grown in the United States and its economy to exceed $43,815 by 2020, a 14.6% increase over 20 Units Bakersfield is centered many diverse industries which inthe current median income of $38,225. Direct: (562) on Exe 5-3/1; 15-2/1, 100% HAP Contract clude agriculture, Office: (310) healthcare, oil, government, and AVAILABLE Asking $125,000 per unit HAPPY NEW YEAR! Should you consider selling or would like a market value of your property at FREE of charge, (Subject to rent roll and expenses) Please call me at: or W 190th Street Torrance, CA

4 RENT ROLL Apartment # Mix Current rent Total Rent Tenant HUD 1 3 Bed 1.5 Bath $382 $583 $ Bed 1 Bath $194 $596 $ Bed 1.5 Bath $- $1,053 $1,053 vacant 4 3 Bed 1.5 Bath $179 $786 $ Bed 1 Bath $198 $592 $ Bed 1 Bath $392 $398 $ Bed 1.5 Bath $129 $836 $ Bed 1.5 Bath $525 $440 $ Bed 1 Bath $74 $716 $ Bed 1 Bath $108 $682 $ Bed 1 Bath $439 $351 $ Bed 1.5 Bath $923 $- $ Bed 1 Bath $121 $669 $ Bed 1 Bath $790 $- $ Bed 1 Bath $31 $759 $ Bed 1 Bath $790 $- $ Bed 1 Bath $590 $200 $ Bed 1.5 Bath $36 $929 $ Bed 1 Bath $834 $- $ Bed 1 Bath $426 $364 $790 2 Bed 1 Bath $209 $581 $790 2 Bed 1 Bath $198 $592 $790 3 Bed 1.5 Bath $142 $823 $965 3 Bed 1.5 Bath $161 $804 $965 $20,625 4

5 SUMMARY Asking Price: $2,760,000 Down Payment: 966,000 Number of Units: 24 Cost per Unit: 115,000 Current GRM: Current CAP: 5.02% Approximate Age of Property: 1982 Approximate Lot Size: 53,317 Approximate Net RSF: 22,863 Cost per RSF: $ Proposed Financing: First Loan Amount: $ 1,794,000 Term: 4.25% 5 Yrs Fixed 360 months amortization due in 5 years Payment per month: $8, Principal deduction per year: $30, Annualized Operating Data: Current Rents Scheduled Gross Income: $250,548 Less Vacancy Rate Reserve: 5% 12,347 Gross Operating Income: 238,201 Less Expenses: 39.8% 99,707 Net Operating Income: $138,494 Less Loan Payments: 105,905 Pre-Tax Cash Flow: 3.4% 32,589 Principal Reduction: 30,244 Total Return Before Taxes: 6.5% $62,833 Scheduled Income: # of Units BDRMS/ BATHS Current Rents Monthly Avg Rent Monthly Income 9 3/2 1,104 $ /1 871 $ /1 Conventional 871 $834 $20,579 Laundry 300 Monthly Scheduled Gross Income: $20,879 Annual Scheduled Gross Income: $250,548 Estimated Annualized Expenses Taxes % $29,532 Insurance 5,051 Utilities 25,208 Repair & Maint 12,000 Management 19,756 Pest Control 2,400 Landscaping 2,400 License 600 Reserve 2,760 Total Expenses: $99,707 Per Net Sq. Ft.: 4.36 Per Unit: $4,154 FOR MORE INFO, CONTACT: 5