Multi-Tenant Investment Opportunity

B ERKEL EY SQU A RE APART MENT S, 1545 NORT H FIRST STREET, SAN JOSE, CA Multi-Tenant Investment Opportunity Offered At: $6,495,000.00 Shown by Appointment Only: Tony Odom (408) 531-4465 tony@csrteam.com CA License #: 01817881 Brian Bonafede (408) 531-4483 brian@csrteam.com CA License #: 01190142 Investment Highlights: 48 Unit Apartment Complex (6 buildings of 8 units each). 465 feet of frontage along North First Street. Near SJ Mineta Int l. Airport, EBay Headquarters, Civic Center, Light Rail Station. Pro Forma NOI: $437,203 5671 Santa Teresa Blvd. Suite 100 95123 Pro Forma Cap Rate: 6.73% Phone: (408) 558-5000 Fax: (408) 559-5505 www.csrcommercial.com

Berkeley Square Apartments CONFIDENTIALITY AGREEMENT The information in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from CSR Commercial Real Estate Services and should not be made available to any other person or entity without the written consent of CSR Commercial Real Estate Services. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the property. The information contained herein is not a substitute for a thorough due diligence investigation. CSR Commercial Real Estate Services has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, CSR Commercial Real Estate Services has not verified, and will not verify, any of the information contained herein, nor has CSR Commercial Real Estate Services conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONTACT CSR COMMERCIAL REAL ESTATE SERVICES FOR MORE DETAILS. 5671 Santa Teresa Blvd., Suite 100 95123 Phone: (408) 558-5000 Fax: (408) 559-5505

Berkeley Square Apartments TABLE OF CONTENTS Section 1 Financial Overview Section 2 Monthly Income Data Section 3 Annualized Operating Data Section 4 Rent Roll Section 5 Property Description Section 6 Property Details Section 7 Site Plan Section 8 Rincon South Land Use Diagram Section 9 Regional Maps Section 10 Aerial Photos

Section 1 Berkeley Square Apartments FINANCIAL OVERVIEW Price $6,495,000.00 Down Payment See Section 4 Number of Units 48 Price / Unit $135,312.50 Rentable Square Feet 35,112 Price / SF $184.98 CAP Rate Current (2010) 5.72% Pro Forma CAP Rate 6.73% GRM Current (2010) 11.90 Pro Forma GRM 10.72 Year Built 1953 Lot Size Type of Ownership 1.22 Acres Fee Simple

Section 2 Berkeley Square Apartments MONTHLY INCOME DATA SCHEDULED RENT INCOME No. of Unit Type 2010 Avg. Avg. Monthly Pro Forma Monthly Units Rents (1) Income Rents (2) Income 12 Studio/1Bath $ 812 $ 9,744 $925 $11,100 30 1 Bdr/1Bath $ 960 $28,800 $1,100 $33,000 6 2 Bdr/1 Bath $1,155 $ 6,930 $1,325 $ 7,950 48 $45,474 $52,050 ADDITIONAL INCOME Washer/Dryers: N/A $ 767 N/A $ 820 $46,241 $52,870 (1) Based on 2010 Rent Income (2) 2011 proforma estimates (3) Garage Income included in 2010 Actual Rents

Section 3 Berkeley Square Apartments ANNUALIZED OPERATING DATA INCOME 2010 Actuals 2011 Pro Forma Potential Gross Rents $562,305 $624,600 Less: Vacancy 3.0% ($ 16,640) ($ 18,738) Gross Income $545,665 $605,862 Other Income: Laundry $ 5,025 $ 5,500 Misc. (credit, late fees, etc) $ 4,198 $ 4,344 Effective Gross Income $554,878 $615,706 EXPENSES Property Taxes $ 56,075 $ 56,636 Property Insurance $ 14,180 $ 11,166 Management $ 23,849 $ 24,563 Advertising $ 1,776 $ 1,800 Maintenance / Repairs $ 43,735 $ 45,152 Supplies $ 12,900 $ 13,271 Utilities $ 19,839 $ 21,691 Professional Services $ 6,405 $ 2,895 Misc. (License, other taxes, etc) $ 1,797 $ 1,329 Total Expenses $183,556 $178,503 NET OPERATING INCOME $371,322 $437,203

Berkeley Square Apartments Section 4 RENT ROLL January 2011 Beds Actual Rent* Pro Forma Rent Bldg. 1481 Unit #1 Studio $ 895 $ 925 Unit #2 1 $ 850 $1,100 Unit #3 1 $1,188 $1,100 Unit #4 Studio $ 725 $ 925 Unit #5 1 $ 875 $1,100 Unit #6 1 $1,296 $1,100 Unit #7 1 $1,076 $1,100 Unit #8 2 $1,554 $1,325 Bldg. 1491 Unit A 1 $1,125 $1,100 Unit B 1 $1,095 $1,100 Unit C Studio $ 850 $ 925 Unit D Studio $ 870 $ 925 Unit E 1 $1,095 $1,100 Unit F 1 $1,095 $1,100 Unit G 1 $1,150 $1,100 Unit H 2 $1,275 $1,325 Bldg. 1505 Unit A 1 $1,165 $1,100 Unit B 1 $1,041 $1,100 Unit C Studio $ 850 $ 925 Unit D Studio $ 850 $ 925 Unit E 1 $1,050 $1,100 Unit F 1 $1,049 $1,100 Unit G 1 $ 850 $1,100 Unit H 2 $ 925 $1,325 Bldg. 1525 Unit A 1 $1,095 $1,100 Unit B 1 $1,075 $1,100 Unit C Studio $ 895 $ 925 Unit D Studio $ 945 $ 925 Unit E 1 $1,150 $1,100 Unit F 1 $1,025 $1,100 Unit G 1 $1,050 $1,100 Unit H 2 $1,100 (office) $1,325 Bldg. 1535 Unit A 1 $1,125 $1,100 Unit B 1 $1,049 $1,100 Unit C Studio $ 725 $ 925 Unit D Studio $ 941 $ 925 Unit E 1 $1,095 $1,100 Unit F 1 $1,075 $1,100 Unit G 1 $ 850 $1,100 Unit H 2 $1,225 $1,325 Bldg. 1545 Unit A 1 $1,075 $1,100 Unit B 1 $1,150 $1,100 Unit C Studio $ 895 $ 925 Unit D Studio $ 845 $ 925 Unit E 1 $1,065 $1,100 Unit F 1 $1,025 $1,100 Unit G 1 $1,053 $1,100 Unit H 2 $1,259 $1,325 TOTALS $49,581 $52,050

Section 5 Berkeley Square Apartments PROPERTY DESCRIPTION The Berkeley Square Apartments consists of six (6) buildings totaling approximately 35,000 square feet situated on one parcel totaling approximately 53,000 square feet (1.22 acres). The 48 unit mix includes: 12 - Studio /1 bathroom apartments 30-1 bedroom /1 bathroom apartments 6-2 bedroom / 1 bathroom apartments The apartments have been well maintained. There are individual circuit breakers in each unit. All of the units have cast iron bathtubs and most have low flow toilets installed. There are also four (4) coin operated washer and dryers on-site and 42 enclosed carports with garage doors. The apartments are individually metered for gas and electricity as well as wired for cable television. The complex has mature, well maintained landscaping. The property is located at the corner of North First Street and Sonora Avenue in San Jose and has approximately 465 feet of frontage along North First Street. San Jose Mineta International Airport, Gish Light Rail Station and Civic Center are nearby as well as many popular Silicon Valley employers, Ebay, Cisco Systems, BEA Systems, Earthlink, Brocade, Infineon, etc Berkeley Square Apartments is part of the Rincon South Planned Community as noted in the City of San Jose s 2020 General Plan.

Section 6 Berkeley Square Apartments PROPERTY DETAILS The Offering Property Berkeley Square Apartments Property Address 1481, 1491, 1505, 1525, 1535, 1545 N. First St. 95112 Assessor s Parcel #: 230-30-107 Zoning R-M 2020 General Plan Transit Corridor Residential General Commercial Overlay Site Description Number of Units 48 Number of Bldgs. 6 Number of Stories 2 Year Built 1953 Rentable Sq. Ft. 33,112 (approximately) Lot Size 53,143 sq. ft. (approximately) Parking 42 Carports with garage doors Utilities Water Landlord, City of San Jose Phone Tenant, SBC Electric Tenant, PG&E Gas Tenant, PG&E Landscaping Landlord, Mature Topography Flat Construction Foundation Concrete Framing Wood Exterior Stucco Roof Tar & Gravel

Section 7 Berkeley Square Apartments SITE PLAN

LAND USE DIAGRAM Rincon South Planned Community Map. 11 Rincon South Planned Community Specific Land Use Plan - Amended July 21, 2005 Section 8 Berkeley Square Apts. Source: Department of Planning Building and Code Enforcement

Berkeley Square Apartments Section 9 REGIONAL MAPS

Berkeley Square Apartments Section 10 AERIAL PHOTOS