MONTEZUMA APARTMENTS 317 S. MONTEZUMA STREET PRESCOTT, AZ David Benzing Advisor

MONTEZUMA APARTMENTS 317 S. MONTEZUMA STREET PRESCOTT, AZ 86303 David Benzing Advisor 480.626.0173 david.benzing@svn.com Art Rullo Advisor 480.626.0181 art.rullo@svn.com Chip Kloppenburg, CCIM, CEA Senior Advisor 480.626.0142 chip.kloppenburg@svn.com SVN REALSTAR ADVISORS 7301 N. 16TH STREET, SUITE 102, PHOENIX, AZ 85020 OFFERING MEMORANDUM

PROPERTY INFORMATION 3 Property Summary Additional Photos Aerial Map FINANCIAL ANALYSIS 7 Financial Summary Income & Expenses Unit Mix Summary Rent Roll Demographics Report Demographics Map Back Page MONTEZUMA APARTMENTS 317 S. MONTEZUMA STREET, PRESCOTT, AZ 86303 OFFERING MEMORANDUM

1 PROPERTY INFORMATION 317 S. Montezuma Street Prescott, AZ 86303 MONTEZUMA APARTMENTS 317 S. MONTEZUMA STREET PRESCOTT, AZ 86303 SVN RealStar Advisors Page 3

Property Summary OFFERING SUMMARY Sale Price: $1,470,000 Number Of Units: 11 Price/Unit $133,636 T-12 @ Sept 30, 2018 NOI: $72,734 T-12 @ Sept 30, 2018 Cap Rate: 4.95% Lot Size: 0.35 Acres Year Built: 1900 & 1905 Building Size: 7,600 SF Zoning: M Market: Northern Arizona PROPERTY OVERVIEW This 11 unit Multifamily Apartment Building is available in historic downtown Prescott, Arizona. The property is conveniently located one block south of Prescott's favorite destination spots and activities such as the historic County Court House square, downtown festivals/parades, restaurants, Whiskey Row and shops. This very desirable location contributes to the property's historically high occupancy rates. PROPERTY HIGHLIGHTS 11 Unit Multifamily Buildng Near Historic Downtown Prescott 4 Remodeled Units and the Other 7 Units need Updated Creating an Opportunity for Increased Rents Potential Opportunity to Create 4 +/- Additional Apartment Units plus an On-Site Laundry for Additional Income High Occupancy Rate History Located in a Highly Desirable Rental Area and Across from Mile High Middle School Walkable Score of 87 Submarket: Prescott MONTEZUMA APARTMENTS 317 S. MONTEZUMA STREET PRESCOTT, AZ 86303 SVN RealStar Advisors Page 4

Additional Photos MONTEZUMA APARTMENTS 317 S. MONTEZUMA STREET PRESCOTT, AZ 86303 SVN RealStar Advisors Page 5

Aerial Map Montezuma Apartments MONTEZUMA APARTMENTS 317 S. MONTEZUMA STREET PRESCOTT, AZ 86303 SVN RealStar Advisors Page 6

2 FINANCIAL ANALYSIS 317 S. Montezuma Street Prescott, AZ 86303 MONTEZUMA APARTMENTS 317 S. MONTEZUMA STREET PRESCOTT, AZ 86303 SVN RealStar Advisors Page 7

Financial Summary INVESTMENT OVERVIEW T-12 @ SEPT 30, 2018 Price $1,470,000 Price per Unit $133,636 GRM 14.1 CAP Rate 5.0% Cash-on-Cash Return (yr 1) 4.85% Total Return (yr 1) $20,202 Debt Coverage Ratio 1.02 OPERATING DATA T-12 @ SEPT 30, 2018 Gross Scheduled Income $104,433 Other Income - Total Scheduled Income $104,433 Vacancy Cost $0 Gross Income $104,433 Operating Expenses $31,699 Net Operating Income $72,734 Pre-Tax Cash Flow $1,231 FINANCING DATA T-12 @ SEPT 30, 2018 Down Payment $294,000 Loan Amount $1,176,000 Debt Service $71,503 Debt Service Monthly $5,958 Principal Reduction (yr 1) $18,971 MONTEZUMA APARTMENTS 317 S. MONTEZUMA STREET PRESCOTT, AZ 86303 SVN RealStar Advisors Page 8

Income & Expenses INCOME SUMMARY T-12 @ SEPT 30, 2018 PER SF Rental Income $104,433 $13.74 Gross Income $104,433 $13.74 EXPENSE SUMMARY T-12 @ SEPT 30, 2018 PER SF Insurance $2,400 $0.32 2018 Property Taxes $2,471 $0.33 Landscaping $634 $0.08 Utilities $15,677 $2.06 Cleaning Fees $1,115 $0.15 Misc $1,049 $0.14 Postage & Delivery $6 $0.00 Pest Control $500 $0.07 Professional Fees $343 $0.05 Repairs & Maintenance $7,504 $0.99 Gross Expenses $31,699 $4.17 Net Operating Income $72,734 $9.57 MONTEZUMA APARTMENTS 317 S. MONTEZUMA STREET PRESCOTT, AZ 86303 SVN RealStar Advisors Page 9

Unit Mix Summary UNIT TYPE COUNT % TOTAL SIZE (SF) RENT MIN. RENT MAX RENT RENT/SF MARKET RENT MARKET RENT/SF DEPOSIT 2 br / 1 ba 4 36.4 850 $1,029 - - $1.37 $0 $0.00 $0 1 br / 1 ba 7 63.6 800 $849 - - $1.29 $0 $0.00 $0 Totals/Averages 11 100% 7,599 $10,059 $0.00 $0.00 $1.32 $0 $0.00 $0 MONTEZUMA APARTMENTS 317 S. MONTEZUMA STREET PRESCOTT, AZ 86303 SVN RealStar Advisors Page 10

Rent Roll UNIT NUMBER UNIT BED UNIT BATH UNIT SIZE (SF) LEASE START LEASE END LEASE START CURRENT RENT CURRENT RENT (PER SF) 317 A 2 1 850 8/1/18 5/31/19 Current $1,150 $1.35 317 Down 1 1 800 10/30/09 Current $875 $1.09 317 1/2 2 1 700 7/28/17 1/31/19 Current $1,175 $1.68 319 A 1 1 600 9/17/18 8/31/19 Current $895 $1.49 319 Main 1 1 700 6/1/18 5/31/19 Current $895 $1.28 321 A 1 1 600 5/14/18 4/30/19 Current $895 $1.49 321 B 1 1 800 8/1/18 7/31/19 Current $795 $1.01 321 House 2 1 700 3/3/18 2/28/19 Current $895 $1.28 323 A 2 1 750 3/23/18 2/28/19 Current $895 $1.19 323 B 1 1 550 7/21/18 6/30/19 Current $750 $1.36 323 House 1 1 550 6/1/16 5/31/19 Current $835 $1.52 Totals/Averages 7,600 $10,055 $1.32 MONTEZUMA APARTMENTS 317 S. MONTEZUMA STREET PRESCOTT, AZ 86303 SVN RealStar Advisors Page 11

Demographics Report 1 MILE 5 MILES 10 MILES Total population 4,273 44,230 76,017 Median age 49.0 52.0 50.2 Median age (male) 47.9 51.8 49.2 Median age (female) 49.9 52.3 51.2 Total households 2,016 20,249 33,910 Total persons per HH 2.1 2.2 2.2 Average HH income $51,621 $64,230 $62,175 Average house value $336,370 $283,988 $290,755 * Demographic data derived from 2010 US Census MONTEZUMA APARTMENTS 317 S. MONTEZUMA STREET PRESCOTT, AZ 86303 SVN RealStar Advisors Page 12

Demographics Map POPULATION 1 MILE 5 MILES 10 MILES 4,273 44,230 76,017 Median age 49.0 52.0 50.2 Median age (Male) 47.9 51.8 49.2 Median age (Female) 49.9 52.3 51.2 1 MILE 5 MILES 10 MILES 2,016 20,249 33,910 # of persons per HH 2.1 2.2 2.2 Average HH income $51,621 $64,230 $62,175 $336,370 $283,988 $290,755 Total population HOUSEHOLDS & INCOME Total households Average house value * Demographic data derived from 2010 US Census MONTEZUMA APARTMENTS 317 S. MONTEZUMA STREET PRESCOTT, AZ 86303 SVN RealStar Advisors Page 13