Property Report Murrieta, CA Contents Rent Comparables 2 Sales Comparables 11 New Construction Comparables 25 Submarket Analysis 29 Metro Analysis 37 Apartment Powered by Reis, inc.
Property Report Murrieta, CA Rent Comparables Apartment Powered by Reis, inc.
Rent Comparables (Monthly Data) Prepared for Golden Eagle Multi Family Properties, LLC Apartment - January, 2014 Metro: San Bernardino/Riverside Section 1 - Subject Property Subject Property Location Subject Property Statistics Address Property Type Apartment City State Zip Murrieta CA Year Built Size (units) Subject Property Amenities Metro San Bernardino/Riverside Submarket SW Riverside Cty Latitude 33.55843 Longitude -117.21179 Unit Community None Reported None Reported Section 2 - Comparable Group Market Summary Comparable Group Summary Statistics Low Mean Median High Current Asking Rent/Unit $971 $1,112 $1,137 $1,353 Current Vacancy Rate 0.3% 3.1% 2.2% 8.3% Property Size (units) 180 320 319 460 Year Built 1984 1990 1989 1999 Studio 1BR 2BR 3BR Current Asking Rent/Unit N/A $995 $1,158 $1,455 Unit Size (SF) N/A 662 944 1,063 Units N/A 108 202 10 Current Asking Rent/SF N/A $1.51 $1.22 $1.37 As of 1/31/14 Section 3 - Lease Terms Submarket Expense Ratio 36.20% Submarket Free Rent (Mo./year) 0.27 As of 1/31/14 Page 3
Rent Comparables (Monthly Data) Prepared for Golden Eagle Multi Family Properties, LLC Apartment - January, 2014 Metro: San Bernardino/Riverside Section 4 - Rent Growth Comparisons Asking Rent Growth Rates Quarterly Annualized 2013Q4 2013Q3 YTD 1 Year 3 Year 5 Year Comparable Group* 0.2% 1.9% 1.4% 3.1% 2.2% 0.6% SW Riverside Cty 0.5% 0.9% 1.0% 1.6% 1.7% 1.4% San Bernardino/Riverside 0.6% 0.5% 0.8% 1.5% 2.1% 0.7% 1. Quarter ending 12/31/13 2. Quarter ending 9/30/13 3. Avg over period ending 1/31/14 4. Avg over period ending 12/31/13 *Historical trends include only properties in the Comp Group that have at least five full years of history; aggregated data on rents and vacancies displayed in other tables may therefore not match precisely. Section 5 - Vacancy Rate Comparisons Quarterly Annualized 2013Q4 2013Q3 YTD 1 Year 3 Year 5 Year Comparable Group* 3.3% 3.8% 3.1% 5.2% 6.1% 6.0% SW Riverside Cty 3.0% 3.5% 2.9% 3.7% 5.0% 6.3% San Bernardino/Riverside 3.1% 3.5% 2.9% 3.6% 4.6% 5.6% 1. Quarter ending 12/31/13 2. Quarter ending 9/30/13 3. Avg over period ending 1/31/14 4. Avg over period ending 12/31/13 *Historical trends include only properties in the Comp Group that have at least five full years of history; aggregated data on rents and vacancies displayed in other tables may therefore not match precisely. Section 6 - Comparable Group Growth Trends Year Month /Qtr Asking Rent (per unit) Asking Rent Pct Change Vacancy Rate Vacancy Change (BPS) 2009 4 $1,064-1.2% 5.8% 20 2010 4 $1,037-2.5% 8.0% 220 2011 4 $1,062 2.4% 6.1% -190 2012 4 $1,074 1.1% 7.1% 100 2012 4 $1,074 0.5% 7.1% 120 2013 1 $1,086 1.1% 5.5% -160 2013 2 $1,084-0.2% 4.6% -90 2013 3 $1,105 1.9% 3.8% -80 2013 4 $1,107 0.2% 3.3% -50 2014 Jan $1,112 0.5% 3.1% -20 Historical trends include only properties in the Comp Group that have at least five full years of history; aggregated data on rents and vacancies displayed in other tables may therefore not match precisely. Page 4
Rent Comparables (Monthly Data) Prepared for Golden Eagle Multi Family Properties, LLC Apartment - January, 2014 Metro: San Bernardino/Riverside Section 7 - Comparable Group Locations Page 5
Rent Comparables (Monthly Data) Prepared for Golden Eagle Multi Family Properties, LLC Apartment - January, 2014 Metro: San Bernardino/Riverside Section 8 - Comparable Group Listing 1 Name The Arbors at California Oaks Current Asking Rent/ Unit $1,073 Address 24375 Jackson Ave Current Vacancy Rate 3.9% City Murrieta Distance from Subject (miles) 1.05 State CA Property Size ( Units) 460 ZIP 92562 Floors 3 County Riverside Year Built 1989 Submarket SW Riverside County Class A Data As Of 01/31/14 Studio 1BR 2BR 3BR Current Asking Rent/Unit N/A $949 $1,234 N/A Unit Size (SF) N/A 580 939 N/A Units N/A 260 200 N/A Current Asking Rent/SF N/A $1.64 $1.31 N/A Unit Amenities Community Amenities Dishwasher Health Club, Tennis, Pool, Shared Laundry 2 Name The Waterstone at Murrieta Current Asking Rent/ Unit $996 Address 24850 Hancock Ave Current Vacancy Rate 1.7% City Murrieta Distance from Subject (miles) 1.79 State CA Property Size ( Units) 420 ZIP 92562 Floors 2 County Riverside Year Built 1990 Submarket SW Riverside County Class BC Data As Of 01/31/14 Studio 1BR 2BR 3BR Current Asking Rent/Unit N/A $939 $1,053 N/A Unit Size (SF) N/A 610 850 N/A Units N/A 210 210 N/A Current Asking Rent/SF N/A $1.54 $1.24 N/A Unit Amenities Community Amenities Dishwasher Business Center, Pool, Pet Friendly, Health Club Page 6
Rent Comparables (Monthly Data) Prepared for Golden Eagle Multi Family Properties, LLC Apartment - January, 2014 Metro: San Bernardino/Riverside 3 Name Gables Alta Murrieta Current Asking Rent/ Unit $1,302 Address 39930 Whitewood Rd Current Vacancy Rate 2.2% City Murrieta Distance from Subject (miles) 2.54 State CA Property Size ( Units) 180 ZIP 92563 Floors 2 County Riverside Year Built 1989 Submarket SW Riverside County Class A Data As Of 01/31/14 Studio 1BR 2BR 3BR Current Asking Rent/Unit N/A $1,088 $1,323 N/A Unit Size (SF) N/A 710 1,019 N/A Units N/A 16 164 N/A Current Asking Rent/SF N/A $1.53 $1.30 N/A Unit Amenities Community Amenities Dishwasher, Washer Dryer, Internet, Fireplace Business Center, Tennis, Pool, Pet Friendly, Parking Lot, Health Club, Parking Garage 4 Name Acacia Park Current Asking Rent/ Unit $1,178 Address 29605 Solana Way Current Vacancy Rate 2.2% City Temecula Distance from Subject (miles) 4.55 State CA Property Size ( Units) 320 ZIP 92591 Floors 2 County Riverside Year Built 1988 Submarket SW Riverside County Class A Data As Of 01/31/14 Studio 1BR 2BR 3BR Current Asking Rent/Unit N/A $1,054 $1,260 N/A Unit Size (SF) N/A 720 1,032 N/A Units N/A 128 192 N/A Current Asking Rent/SF N/A $1.46 $1.22 N/A Unit Amenities Community Amenities Dishwasher, Fireplace Parking Garage, Tennis, Pool, Pet Friendly, Health Club Page 7
Rent Comparables (Monthly Data) Prepared for Golden Eagle Multi Family Properties, LLC Apartment - January, 2014 Metro: San Bernardino/Riverside 5 Name Solona Ridge Apts Current Asking Rent/ Unit $1,260 Address 41754 Margarita Rd Current Vacancy Rate 1.9% City Temecula Distance from Subject (miles) 4.79 State CA Property Size ( Units) 312 ZIP 92591 Floors 2 County Riverside Year Built 1998 Submarket SW Riverside County Class A Data As Of 01/31/14 Studio 1BR 2BR 3BR Current Asking Rent/Unit N/A $1,075 $1,400 $1,648 Unit Size (SF) N/A 766 1,041 1,220 Units N/A 147 149 16 Current Asking Rent/SF N/A $1.40 $1.34 $1.35 Unit Amenities Community Amenities None Reported Pet Friendly 6 Name Sycamore Terrace Current Asking Rent/ Unit $1,145 Address 41770 Margarita Rd Current Vacancy Rate 2.2% City Temecula Distance from Subject (miles) 4.79 State CA Property Size ( Units) 224 ZIP 92591 Floors 2 County Riverside Year Built 1987 Submarket SW Riverside County Class A Data As Of 01/31/14 Studio 1BR 2BR 3BR Current Asking Rent/Unit N/A $962 $1,195 N/A Unit Size (SF) N/A 650 978 N/A Units N/A 48 176 N/A Current Asking Rent/SF N/A $1.48 $1.22 N/A Unit Amenities Community Amenities Dishwasher, Internet, Fireplace Business Center, Tennis, Pool, Pet Friendly, Shared Laundry, Health Club, Clubhouse Page 8
Rent Comparables (Monthly Data) Prepared for Golden Eagle Multi Family Properties, LLC Apartment - January, 2014 Metro: San Bernardino/Riverside 7 Name Somerset Apartments Current Asking Rent/ Unit $971 Address 42211 Stonewood Rd Current Vacancy Rate 0.3% City Temecula Distance from Subject (miles) 4.97 State CA Property Size ( Units) 318 ZIP 92591 Floors 2 County Riverside Year Built 1987 Submarket SW Riverside County Class BC Data As Of 01/31/14 Studio 1BR 2BR 3BR Current Asking Rent/Unit N/A N/A $971 N/A Unit Size (SF) N/A N/A 945 N/A Units N/A N/A 318 N/A Current Asking Rent/SF N/A N/A $1.03 N/A Unit Amenities Community Amenities Dishwasher, Washer Dryer, Internet Parking Garage, Security Patrol, Pet Friendly, Parking Lot, Shared Laundry, Health Club 8 Name Temecula Gardens Current Asking Rent/ Unit $974 Address 29485 Rancho California Rd Current Vacancy Rate 8.3% City Temecula Distance from Subject (miles) 5.32 State CA Property Size ( Units) 400 ZIP 92591 Floors 2 County Riverside Year Built 1984 Submarket SW Riverside County Class BC Data As Of 01/31/14 Studio 1BR 2BR 3BR Current Asking Rent/Unit N/A $879 $1,034 N/A Unit Size (SF) N/A 660 880 N/A Units N/A 154 246 N/A Current Asking Rent/SF N/A $1.33 $1.18 N/A Unit Amenities Community Amenities Dishwasher Parking Garage, Pool, Shared Laundry Page 9
Rent Comparables (Monthly Data) Prepared for Golden Eagle Multi Family Properties, LLC Apartment - January, 2014 Metro: San Bernardino/Riverside 9 Name Tuscany Ridge Apts Current Asking Rent/ Unit $1,353 Address 41955 Margarita Rd Current Vacancy Rate 3.2% City Temecula Distance from Subject (miles) 5.38 State CA Property Size ( Units) 220 ZIP 92591 Floors 2 County Riverside Year Built 1999 Submarket SW Riverside County Class A Data As Of 01/31/14 Studio 1BR 2BR 3BR Current Asking Rent/Unit N/A $1,185 $1,497 $1,863 Unit Size (SF) N/A 740 1,041 1,320 Units N/A 120 84 16 Current Asking Rent/SF N/A $1.60 $1.44 $1.41 Unit Amenities Community Amenities Dishwasher, Unit Security, Internet Business Center, Pool, Pet Friendly, Health Club, Parking Garage, Clubhouse 10 Name Sage Canyon Current Asking Rent/ Unit $1,128 Address 42200 Moraga Rd Current Vacancy Rate 2.9% City Temecula Distance from Subject (miles) 5.39 State CA Property Size ( Units) 344 ZIP 92591 Floors 2 County Riverside Year Built 1986 Submarket SW Riverside County Class A Data As Of 01/31/14 Studio 1BR 2BR 3BR Current Asking Rent/Unit N/A N/A $1,087 $1,305 Unit Size (SF) N/A N/A 869 960 Units N/A N/A 280 64 Current Asking Rent/SF N/A N/A $1.25 $1.36 Unit Amenities Community Amenities None Reported Health Club, Tennis, Pool Page 10
Property Report Murrieta, CA Sales Comparables Apartment Powered by Reis, inc.
Sales Comparables Prepared for Golden Eagle Multi Family Properties, LLC Metro: San Bernardino/Riverside Section 9 - Subject Property Name Address/Area Searched Metro (None Entered), Murrieta, CA San Bernardino/Riverside Section 10 - Summary Statistics Low Average High Number of Units 4 166 320 Number of Floors 2 2 3 Year Built 1979 1993 2010 Time Since Sale (months) 4 8 15 Sale Price $500,000 $22,250,800 $58,000,000 Sale Price Per Unit $60,417 $134,203 $211,679 Effective Gross Income Multiplier 6.2x 9.5x 13.2x Total Number of Properties 10 Page 12
Sales Comparables Prepared for Golden Eagle Multi Family Properties, LLC Metro: San Bernardino/Riverside Section 11 - Comparable Group Locations Page 13
Sales Comparables Prepared for Golden Eagle Multi Family Properties, LLC Metro: San Bernardino/Riverside Address Distance From Subject Submarket Year Built Floors Total Units Sale Price Price Per Unit Sale Date 1. 666-674 Woodcrest Dr 12.90 mi. Perris 1987 2 8 $1,000,000 $125,000 15 Nov 2013 Lake Elsinore, CA 92530 2. 1250 S Perris Blvd 14.94 mi. Perris 1979 2 24 $1,450,000 $60,417 18 Oct 2013 Perris, CA 92570 3. 678 Woodcrest Dr 12.91 mi. Perris 1987 2 4 $500,000 $125,000 02 Oct 2013 Lake Elsinore, CA 92530 4. 42168-42211 Stonewood Rd 4.97 mi. SW Riverside Cty 1987 2 318 $33,650,000 $105,818 01 Oct 2013 Temecula, CA 92591 5. 40125 Los Alamos Rd 1.56 mi. SW Riverside Cty 1989 2 200 $23,900,000 $119,500 27 Aug 2013 Murrieta, CA 92562 6. 28377 Encanto Dr 10.50 mi. Perris 1990 2 96 $8,100,000 $84,375 27 Jun 2013 Sun City, CA 92586 7. 30951 Hanover Ln 8.21 mi. Perris 2009 3 230 $31,000,000 $134,783 03 Jun 2013 Menifee, CA 92584 8. 2088 E Lakeshore Dr 8.85 mi. Perris 2008 3 184 $23,908,000 $129,935 25 Apr 2013 Lake Elsinore, CA 92530 9. 28845 Pujol St 6.17 mi. SW Riverside Cty 2010 3 274 $58,000,000 $211,679 21 Dec 2012 Temecula, CA 92590 10. 29605 Solana Way 4.55 mi. SW Riverside Cty 1988 2 320 $41,000,000 $128,125 19 Dec 2012 Temecula, CA 92591 Page 14
Sales Comparables Prepared for Golden Eagle Multi Family Properties, LLC Metro: San Bernardino/Riverside Property Location and Physical Characteristics Property Name Property Type Market Rate Rental Address 666-674 Woodcrest Dr Building Area (SF) 12,128 City Lake Elsinore No. of Bldgs./Floors 1 / 2 State/ZIP/County CA / 92530 / Riverside Year Built/Renovated 1987 / -- Metro (Submarket) San Bernardino/Riverside (Perris) Total Units/Asset Class 8 / BC Distance from subject 12.90 miles Comments Sale Details and Analysis Sale Date 15 Nov 2013 Reis Cap Rate Analysis Proforma Sale Price $1,000,000 (Verified: Pub Rcrd) All per unit figures are monthly Sale Price/Unit $125,000 Total Units 8 Sale Price PSF $82 Potential Rent Revenue $81,657 Vacancy at Sale -- Vacancy Loss/Rate ($3,736) [ 4.6%] $851 Market Rent x 12 Months x 8 Units x 4.6% Seller 1. Nickel Family 1998 Trust Effective Rent Revenue $77,922 $851 In Place Rent x 12 Months x 8 Units x 95.4% Free Rent Concessions ($1,344) [$168 Per Unit] Credit Loss ($817) [ 1.0%] Buyer 1. VWG LLC / 1560 Norstar Ln, Fallbrook, CA 92028 Additional Income $0 [$0 Per Unit] Effective Gross Revenue $75,761 Operating Expenses/Ratio ($29,233) [ 35.8%] Capital Reserve ($2,800) [$350 Per Unit] Comments Net Operating Income $43,727 Estimated Going-in Cap Rate 4.4% Based on Sale Price of $1,000,000 12-Month Rolling Metro Cap Rate 6.7% (Q4 2013) Reported Cap Rate, This Sale None Additional Details When Available Seller's Broker Buyer's Broker Other Broker Interest Purchased -- Lot Size 20,908 SF / 0.48 Acres Parcel Numbers 379341019, 379341020 Number Monthly Rent Efficiencies -- -- 1 Bedrooms -- -- 2 Bedrooms -- -- 3 Bedrooms -- -- Deed Reference 547340 4 Bedrooms -- -- Time on Market Total 8 -- Financing Details Other: Page 15
Sales Comparables Prepared for Golden Eagle Multi Family Properties, LLC Metro: San Bernardino/Riverside Property Location and Physical Characteristics Property Name Property Type Market Rate Rental Address 1250 S Perris Blvd Building Area (SF) 18,000 City Perris No. of Bldgs./Floors 1 / 2 State/ZIP/County CA / 92570 / Riverside Year Built/Renovated 1979 / -- Metro (Submarket) San Bernardino/Riverside (Perris) Total Units/Asset Class 24 / BC Distance from subject 14.94 miles Comments Sale Details and Analysis Sale Date 18 Oct 2013 Reis Cap Rate Analysis Proforma Sale Price $1,450,000 (Verified: Pub Rcrd) All per unit figures are monthly Sale Price/Unit $60,417 Total Units 24 Sale Price PSF $81 Potential Rent Revenue $251,122 Vacancy at Sale -- Vacancy Loss/Rate ($10,746) [ 4.3%] $872 Market Rent x 12 Months x 24 Units x 4.3% Seller 1. Harkness B H Trust Effective Rent Revenue $240,375 $872 In Place Rent x 12 Months x 24 Units x 95.7% Free Rent Concessions ($4,146) [$173 Per Unit] Credit Loss ($2,511) [ 1.0%] Buyer 1. Mmmse Hamilton LP / 3 Monarch Bay Plz, Dana Point, CA Additional Income $0 [$0 Per Unit] 92629 Effective Gross Revenue $233,718 Operating Expenses/Ratio ($89,902) [ 35.8%] Capital Reserve ($8,400) [$350 Per Unit] Comments Net Operating Income $135,416 Estimated Going-in Cap Rate 9.3% Based on Sale Price of $1,450,000 12-Month Rolling Metro Cap Rate 6.7% (Q4 2013) Reported Cap Rate, This Sale None Additional Details When Available Seller's Broker Buyer's Broker Other Broker Interest Purchased -- Lot Size 29,185 SF / 0.67 Acres Parcel Number 313283037 Number Monthly Rent Efficiencies -- -- 1 Bedrooms -- -- 2 Bedrooms -- -- 3 Bedrooms -- -- Deed Reference 514488 4 Bedrooms -- -- Time on Market Total 24 -- Financing Details Other: Page 16
Sales Comparables Prepared for Golden Eagle Multi Family Properties, LLC Metro: San Bernardino/Riverside Property Location and Physical Characteristics Property Name Property Type Market Rate Rental Address 678 Woodcrest Dr Building Area (SF) 6,064 City Lake Elsinore No. of Bldgs./Floors 1 / 2 State/ZIP/County CA / 92530 / Riverside Year Built/Renovated 1987 / -- Metro (Submarket) San Bernardino/Riverside (Perris) Total Units/Asset Class 4 / BC Distance from subject 12.91 miles Comments Sale Details and Analysis Sale Date 02 Oct 2013 Reis Cap Rate Analysis Proforma Sale Price $500,000 (Verified: Pub Rcrd) All per unit figures are monthly Sale Price/Unit $125,000 Total Units -- Sale Price PSF $82 Potential Rent Revenue -- Vacancy at Sale -- Vacancy Loss/Rate -- Seller 1. Fenton Living Trust Effective Rent Revenue -- Buyer 1. Antonio Carreon / 16238 Summershade Dr, La Mirada, CA 90638 Free Rent Concessions -- Credit Loss -- Additional Income -- Effective Gross Revenue -- Operating Expenses/Ratio -- Capital Reserve -- Comments Net Operating Income -- Estimated Going-in Cap Rate -- 12-Month Rolling Metro Cap Rate 6.7% (Q4 2013) Reported Cap Rate, This Sale None Additional Details When Available Seller's Broker Buyer's Broker Other Broker Interest Purchased -- Lot Size 10,454 SF / 0.24 Acres Parcel Number 379341021 Number Monthly Rent Efficiencies -- -- 1 Bedrooms -- -- 2 Bedrooms -- -- 3 Bedrooms -- -- Deed Reference 497307 4 Bedrooms -- -- Time on Market Total 4 -- Financing Details Other: Page 17
Sales Comparables Prepared for Golden Eagle Multi Family Properties, LLC Metro: San Bernardino/Riverside Property Location and Physical Characteristics Property Name Somerset Apartment Homes Property Type Market Rate Rental Address 42168-42211 Stonewood Rd Building Area (SF) 300,510 NRA City Temecula No. of Bldgs./Floors 40 / 2 State/ZIP/County CA / 92591 / Riverside Year Built/Renovated 1987 / 2013 Metro (Submarket) San Bernardino/Riverside (SW Riverside Cty) Total Units/Asset Class 318 / BC Distance from subject 4.97 miles Comments Sale Details and Analysis Sale Date 01 Oct 2013 Reis Cap Rate Analysis Proforma Sale Price $33,650,000 (Verified: Pub Rcrd) All per unit figures are monthly Sale Price/Unit $105,818 Total Units 318 Sale Price PSF $112 NRA Potential Rent Revenue $3,892,320 Vacancy at Sale -- Vacancy Loss/Rate ($24,480) [ 0.6%] $1,020 Market Rent x 12 Months x 318 Units x 0.6% Seller 1. CWCapital Asset Management LLC / (410) 500-4300 / 1 South St, Ste 850, Baltimore, MD 21202 2. 42211 Stonewood Road Holdings LLC / 701 13 St NW, Ste 1000, Washington, DC 20005 Effective Rent Revenue $3,867,840 $1,020 In Place Rent x 12 Months x 318 Units x 99.4% Free Rent Concessions ($27,075) [$85 Per Unit] Credit Loss ($38,923) [ 1.0%] Buyer 1. Somerset LP / 3366 Via Lido, Newport Beach, CA 92663 Additional Income $0 [$0 Per Unit] Effective Gross Revenue $3,801,842 Operating Expenses/Ratio ($1,416,804) [ 36.4%] Capital Reserve ($111,300) [$350 Per Unit] Comments Net Operating Income $2,273,737 Estimated Going-in Cap Rate 6.8% Based on Sale Price of $33,650,000 12-Month Rolling Metro Cap Rate 6.7% (Q4 2013) Reported Cap Rate, This Sale None Additional Details When Available Seller's Broker Buyer's Broker Other Broker Interest Purchased -- Lot Size 662,548 SF / 15.21 Acres Parcel Numbers 921-300-011, 921-300-012 Number Monthly Rent Efficiencies -- -- 1 Bedrooms -- -- 2 Bedrooms 318 -- 3 Bedrooms -- -- Deed Reference 2013-0475449 4 Bedrooms -- -- Time on Market Total 318 $0 Financing Details City National Bank provided a $33,275,000 loan. Other: Laundry Facility. Pool. Health Club. Security. Property previously sold in March 2002 and September 2003; See Reis Sales Comparables IDs 54743 and 67846. Page 18
Sales Comparables Prepared for Golden Eagle Multi Family Properties, LLC Metro: San Bernardino/Riverside Property Location and Physical Characteristics Property Name Rancho Las Brisas Property Type Market Rate Rental Address 40125 Los Alamos Rd Building Area (SF) City Murrieta No. of Bldgs./Floors 11 / 2 State/ZIP/County CA / 92562 / Riverside Year Built/Renovated 1989 / 2005 Metro (Submarket) San Bernardino/Riverside (SW Riverside Cty) Total Units/Asset Class 200 / BC Distance from subject 1.56 miles Comments Sale Details and Analysis Sale Date 27 Aug 2013 Reis Cap Rate Analysis Proforma Sale Price $23,900,000 (Verified: Pub Rcrd) All per unit figures are monthly Sale Price/Unit $119,500 Total Units 200 Sale Price PSF -- Potential Rent Revenue $3,010,344 Vacancy at Sale -- Vacancy Loss/Rate ($129,697) [ 4.3%] $1,254 Market Rent x 12 Months x 200 Units x 4.3% Seller 1. Rancho Las Brisas Murrieta LP / 30950 Rancho Viejo Rd, Ste 100, San Juan Capistrano, CA 92675 2. Foundation For Affordable Housing V Inc / 384 Forest Ave, Ste 14, Laguna Beach, CA 92651 Buyer 1. Vantage Point SD LP / 2655 Camino Del Rio N, Ste 320, San Diego, CA 92108 Effective Rent Revenue $2,880,647 $1,254 In Place Rent x 12 Months x 200 Units x 95.7% Free Rent Concessions ($20,165) [$101 Per Unit] Credit Loss ($30,103) [ 1.0%] Additional Income $0 [$0 Per Unit] Effective Gross Revenue $2,830,379 Operating Expenses/Ratio ($1,095,765) [ 36.4%] Capital Reserve ($60,000) [$300 Per Unit] Comments Net Operating Income $1,674,613 Estimated Going-in Cap Rate 7.0% Based on Sale Price of $23,900,000 12-Month Rolling Metro Cap Rate 6.6% (Q3 2013) Reported Cap Rate, This Sale None Additional Details When Available Seller's Broker Buyer's Broker Other Broker Interest Purchased -- Lot Size 456,944 SF / 10.49 Acres Parcel Numbers 948320005, 948320007, 948320003 Number Monthly Rent Efficiencies -- -- 1 Bedrooms 48 -- 2 Bedrooms 152 -- 3 Bedrooms -- -- Deed Reference 2013-0525851 4 Bedrooms -- -- Time on Market Total 200 $0 Financing Details Union Bank provided a $18,187,500 loan. Other: Laundry Facility. Pool. Exercise Room. Property previously sold in June 2006 and December 2011; See Reis Sales Comparables IDs 133775 and 372601. Page 19
Sales Comparables Prepared for Golden Eagle Multi Family Properties, LLC Metro: San Bernardino/Riverside Property Location and Physical Characteristics Property Name Villa La Paz Property Type Market Rate Rental Address 28377 Encanto Dr Building Area (SF) 82,752 NRA City Sun City No. of Bldgs./Floors -- / 2 State/ZIP/County CA / 92586 / Riverside Year Built/Renovated 1990 / 2008 Metro (Submarket) San Bernardino/Riverside (Perris) Total Units/Asset Class 96 / A Distance from subject 10.50 miles Comments Sale Details and Analysis Sale Date 27 Jun 2013 Reis Cap Rate Analysis Proforma Sale Price $8,100,000 (Verified: Pub Rcrd) All per unit figures are monthly Sale Price/Unit $84,375 Total Units 96 Sale Price PSF $98 NRA Potential Rent Revenue $1,008,000 Vacancy at Sale -- Vacancy Loss/Rate ($115,500) [ 11.5%] $875 Market Rent x 12 Months x 96 Units x 11.5% Seller 1. Villa La Paz LLC / 421 S Beverly Dr, 7th Fl, Beverly Hills, CA 90212 2. KOR/KSI Villa La Paz LLC / 421 S Beverly Dr, 7th Fl, Beverly Hills, CA 90212 Effective Rent Revenue $892,500 $875 In Place Rent x 12 Months x 96 Units x 88.5% Free Rent Concessions ($15,619) [$163 Per Unit] Credit Loss ($10,080) [ 1.0%] Buyer 1. Villagio Villas LP / 3366 Via Lido, Newport Beach, CA 92663 Additional Income $0 [$0 Per Unit] Effective Gross Revenue $866,801 Operating Expenses/Ratio ($360,864) [ 35.8%] Capital Reserve ($28,800) [$300 Per Unit] Comments Net Operating Income $477,137 Estimated Going-in Cap Rate 5.9% Based on Sale Price of $8,100,000 12-Month Rolling Metro Cap Rate 6.7% (Q2 2013) Reported Cap Rate, This Sale None Additional Details When Available Seller's Broker Buyer's Broker Other Broker Interest Purchased -- Lot Size 268,765 SF / 6.17 Acres Parcel Number 336-030-009 Number Monthly Rent Efficiencies -- -- 1 Bedrooms 18 -- 2 Bedrooms 54 -- 3 Bedrooms 24 -- Deed Reference 2013-0311005 4 Bedrooms -- -- Time on Market Total 96 $0 Financing Details Other: Laundry Facility. Pool. Health Club. Page 20
Sales Comparables Prepared for Golden Eagle Multi Family Properties, LLC Metro: San Bernardino/Riverside Property Location and Physical Characteristics Property Name Cantabria Property Type Market Rate Rental Address 30951 Hanover Ln Building Area (SF) City Menifee No. of Bldgs./Floors 12 / 3 State/ZIP/County CA / 92584 / Riverside Year Built/Renovated 2009 / -- Metro (Submarket) San Bernardino/Riverside (Perris) Total Units/Asset Class 230 / A Distance from subject 8.21 miles Comments Sale Details and Analysis Sale Date 03 Jun 2013 Reis Cap Rate Analysis Proforma Sale Price $31,000,000 (Verified: Pub Rcrd) All per unit figures are monthly Sale Price/Unit $134,783 Total Units 230 Sale Price PSF -- Potential Rent Revenue $3,682,464 Vacancy at Sale -- Vacancy Loss/Rate ($112,075) [ 3.0%] $1,334 Market Rent x 12 Months x 230 Units x 3.0% Seller 1. Robb Evans Effective Rent Revenue $3,570,389 $1,334 In Place Rent x 12 Months x 230 Units x 97.0% Free Rent Concessions ($63,374) [$276 Per Unit] Credit Loss ($36,825) [ 1.0%] Buyer 1. Strata Cantabria LLC / 4370 La Jolla Village Dr, Ste 960, San Additional Income $0 [$0 Per Unit] Diego, CA 92122 Effective Gross Revenue $3,470,190 Operating Expenses/Ratio ($1,325,687) [ 36.0%] Capital Reserve ($57,500) [$250 Per Unit] Comments Net Operating Income $2,087,003 Estimated Going-in Cap Rate 6.7% Based on Sale Price of $31,000,000 12-Month Rolling Metro Cap Rate 6.7% (Q2 2013) Reported Cap Rate, This Sale None Additional Details When Available Seller's Broker Buyer's Broker Other Broker Interest Purchased -- Lot Size 472,626 SF / 10.85 Acres Parcel Number 364-070-048 Number Monthly Rent Efficiencies -- -- 1 Bedrooms 128 -- 2 Bedrooms 102 -- 3 Bedrooms -- -- Deed Reference 295019 4 Bedrooms -- -- Time on Market Total 230 $0 Financing Details CBRE Capital Markets Inc provided a $20,100,000 loan. Other: Page 21
Sales Comparables Prepared for Golden Eagle Multi Family Properties, LLC Metro: San Bernardino/Riverside Property Location and Physical Characteristics Property Name Broadstone River's Edge Apts Property Type Market Rate Rental Address 2088 E Lakeshore Dr Building Area (SF) City Lake Elsinore No. of Bldgs./Floors 9 / 3 State/ZIP/County CA / 92530 / Riverside Year Built/Renovated 2008 / -- Metro (Submarket) San Bernardino/Riverside (Perris) Total Units/Asset Class 184 / A Distance from subject 8.85 miles Comments Sale Details and Analysis Sale Date 25 Apr 2013 Reis Cap Rate Analysis Proforma Sale Price $23,908,000 (Verified: Pub Rcrd) All per unit figures are monthly Sale Price/Unit $129,935 Total Units -- Sale Price PSF -- Potential Rent Revenue -- Vacancy at Sale -- Vacancy Loss/Rate -- Seller 1. Broadstone Rivers Edge LLC / 40 E 52nd St, New York, NY 10022 2. Broadstone Rivers Edge Alliance LLC / 2415 E Camelback Rd, Ste 600, Phoenix, AZ 85016 3. Broadstone Rivers Edge Alliance II LLC / 2415 E Camelback Rd, Ste 600, Phoenix, AZ 85016 Buyer 1. Rivers Edge Apartments LLC / 9757 NE Juanita Dr, Ste 300, Kirkland, WA 98034 Effective Rent Revenue -- Free Rent Concessions -- Credit Loss -- Additional Income -- Effective Gross Revenue -- Operating Expenses/Ratio -- Capital Reserve -- Comments Net Operating Income -- Estimated Going-in Cap Rate -- 12-Month Rolling Metro Cap Rate 6.7% (Q2 2013) Reported Cap Rate, This Sale None Additional Details When Available Seller's Broker Buyer's Broker Other Broker Interest Purchased -- Lot Size 311,018 SF / 7.14 Acres Parcel Number 373210047 Number Monthly Rent Efficiencies -- -- 1 Bedrooms -- -- 2 Bedrooms -- -- 3 Bedrooms -- -- Deed Reference 2013-0198334 4 Bedrooms -- -- Time on Market Total 184 -- Financing Details Berkadia Commercial Mortgage LLC provided a $17,545,000 loan. Other: Pool. Health Club. Page 22
Sales Comparables Prepared for Golden Eagle Multi Family Properties, LLC Metro: San Bernardino/Riverside Property Location and Physical Characteristics Property Name The Vineyards At Old Town Temecula Property Type Market Rate Rental Address 28845 Pujol St Building Area (SF) City Temecula No. of Bldgs./Floors 17 / 3 State/ZIP/County CA / 92590 / Riverside Year Built/Renovated 2010 / -- Metro (Submarket) San Bernardino/Riverside (SW Riverside Cty) Total Units/Asset Class 274 / A Distance from subject 6.17 miles Comments Sale Details and Analysis Sale Date 21 Dec 2012 Reis Cap Rate Analysis Proforma Sale Price $58,000,000 (Verified: Pub Rcrd) All per unit figures are monthly Sale Price/Unit $211,679 Total Units 274 Sale Price PSF -- Potential Rent Revenue $5,354,880 Vacancy at Sale -- Vacancy Loss/Rate ($117,260) [ 2.2%] $1,629 Market Rent x 12 Months x 274 Units x 2.2% Seller 1. Private Seller Effective Rent Revenue $5,237,620 $1,629 In Place Rent x 12 Months x 274 Units x 97.8% Free Rent Concessions ($40,592) [$148 Per Unit] Credit Loss ($53,549) [ 1.0%] Buyer 1. Vineyards Temecula Apartments / 28845 Pujol St, Temecula, Additional Income $0 [$0 Per Unit] CA 92590 Effective Gross Revenue $5,143,480 Operating Expenses/Ratio ($1,959,886) [ 36.6%] Capital Reserve ($68,500) [$250 Per Unit] Comments Net Operating Income $3,115,093 Estimated Going-in Cap Rate 5.4% Based on Sale Price of $58,000,000 12-Month Rolling Metro Cap Rate 6.7% (Q4 2012) Reported Cap Rate, This Sale None Additional Details When Available Seller's Broker Buyer's Broker Other Broker Interest Purchased -- Lot Size 581,090 SF / 13.34 Acres Parcel Number 922-260-028 Number Monthly Rent Efficiencies -- -- 1 Bedrooms -- -- 2 Bedrooms -- -- 3 Bedrooms -- -- Deed Reference 632650 4 Bedrooms -- -- Time on Market Total 274 -- Financing Details Other: Page 23
Sales Comparables Prepared for Golden Eagle Multi Family Properties, LLC Metro: San Bernardino/Riverside Property Location and Physical Characteristics Property Name Acacia Park Property Type Market Rate Rental Address 29605 Solana Way Building Area (SF) 300,960 NRA City Temecula No. of Bldgs./Floors 1 / 2 State/ZIP/County CA / 92591 / Riverside Year Built/Renovated 1988 / 2008 Metro (Submarket) San Bernardino/Riverside (SW Riverside Cty) Total Units/Asset Class 320 / A Distance from subject 4.55 miles Comments Sale Details and Analysis Sale Date 19 Dec 2012 Reis Cap Rate Analysis Proforma Sale Price $41,000,000 (Verified: Pub Rcrd) All per unit figures are monthly Sale Price/Unit $128,125 Total Units 320 Sale Price PSF $136 NRA Potential Rent Revenue $4,204,800 Vacancy at Sale -- Vacancy Loss/Rate ($39,420) [ 0.9%] $1,095 Market Rent x 12 Months x 320 Units x 0.9% Seller 1. Universe At Temecula Park LLC / 1875 Century Park E, Ste 1800, Los Angeles, CA 90067 Effective Rent Revenue $4,165,380 $1,095 In Place Rent x 12 Months x 320 Units x 99.1% Free Rent Concessions ($32,282) [$101 Per Unit] Credit Loss ($42,048) [ 1.0%] Buyer 1. Apa 9 Owner LLC Additional Income $0 [$0 Per Unit] Effective Gross Revenue $4,091,050 Operating Expenses/Ratio ($1,538,957) [ 36.6%] Capital Reserve ($96,000) [$300 Per Unit] Comments Net Operating Income $2,456,094 Estimated Going-in Cap Rate 6.0% Based on Sale Price of $41,000,000 12-Month Rolling Metro Cap Rate 6.7% (Q4 2012) Reported Cap Rate, This Sale None Additional Details When Available Seller's Broker Buyer's Broker Other Broker Interest Purchased -- Lot Size 696,524 SF / 15.99 Acres Parcel Number 921-290-004 Number Monthly Rent Efficiencies -- -- 1 Bedrooms 128 -- 2 Bedrooms 192 -- 3 Bedrooms -- -- Deed Reference 636382 4 Bedrooms -- -- Time on Market Total 320 $0 Financing Details Other: Washer/Dryer Hook-ups. Pool. Tennis. Health Club. Exercise Room. Property previously sold in May, 2006; See Reis Sales Comparables ID 133753. Page 24
Property Report Murrieta, CA New Construction Comparables Apartment Powered by Reis, inc.
New Construction Comparables Prepared for Golden Eagle Multi Family Properties, LLC Metro: San Bernardino/Riverside Section 14 - Subject Property Address, Market/Submarket or ZIP code(s) Reis Metro Search Parameters Murrieta CA San Bernardino/Riverside Radius (mi) 15 Include Size Expected Completion Proposed,Planned,Under Constr.,Complete N/A N/A Summary Statistics Parameters Low Average High Distance from Subject (mi) 0.24 6.49 10.81 Months Until Completion N/A N/A 6 Size 40 153 312 Page 26
New Construction Comparables Prepared for Golden Eagle Multi Family Properties, LLC Metro: San Bernardino/Riverside No. 1 2 Property 295 W SUMNER AVE @ LANGSTAFF ST 31152 SUNFLOWER WAY @ LOMA LINDA RD Distance From Subject (mi) Section 15 - Comparable Group Listing 10.49 SW Riverside County 3 28701 PUJOL ST @ 1ST ST 6.01 SW Riverside County 4 JEFFERSON AVE @ JUNIPER ST 0.24 SW Riverside County 5 6 7 44155 MARGARITA RD @ TEMECULA PKWY CAMPANULA WAY @ MEADOWS PKWY 24055 CLINTON KEITH RD @ INLAND VALLEY DR Submarket Subtype Size Subsidized/Low Income Estimated Ground Break Expected Completion Status 113 3/2011 7/2012 Complete 8.21 SW Riverside County Condominiums 236 4/2007 8/2012 Complete 8.23 SW Riverside County 8 VISTA MURRIETA @ MONROE AVE 1.12 SW Riverside County 9 GRAND AVE @ SANTA ROSA DR 10.81 Perris 10 DE PORTOLA RD @ MEADOWS PKWY Subsidized/Low Income Subsidized/Low Income Subsidized/Low Income 44 1/2013 Complete 40 2/2012 3/2013 Complete 59 4/2013 2/2014 Complete 8.49 SW Riverside County Apartment 288 3/2013 8/2014 Under Constr. 3.03 SW Riverside County Apartment 312 4/2013 9/2014 Under Constr. Senior Citizen Housing Senior Citizen Housing 98 10/2013 9/2014 Under Constr. 154 Planned 8.29 SW Riverside County Condominiums 186 Planned Page 27
New Construction Comparables Prepared for Golden Eagle Multi Family Properties, LLC Metro: San Bernardino/Riverside Section 16 - Comparable Group Locations Page 28
Property Report Murrieta, CA Submarket Analysis Apartment Powered by Reis, inc.
Submarket Analysis (Monthly Data) Prepared for Golden Eagle Multi Family Properties, LLC Apartment - January, 2014 Submarket: SW Riverside County Section 17 - Executive Briefing on Submarket Conditions Average Asking Rent $1,202 Up 0.5% from Q3 2013. Expected to finish 2014 at $1,224. Average Vacancy Rate 3.0% Down 50 basis points from Q3 2013. Lowest level since year-end 2001. Expected to finish 2014 at 4.1%. Submarket Overview The Southwest Riverside County submarket, one of sixteen distinct geographic concentrations within San Bernardino/Riverside, contains 7,923 market rate rental units, or 6.0% of the metro's total inventory of apartment space. In the ten-year period since Q4 2003, new additions to the submarket have totaled 2,400 units, while 32 units have been removed from the inventory of market rate rentals. The net total gain of 2,368 apartments amounts to an annualized inventory growth rate of 3.6%, exceeding the metro growth rate of 1.0% over the same period. Asking And Effective Rent Asking rents increased by 0.5% during the fourth quarter of 2013 to an average of $1,202, a level surpassed by only three of San Bernardino/Riverside's sixteen submarkets: Rancho Cucamonga ($1,420), South Ontario/Chino ($1,341), and Riverside County/Corona ($1,216). Mean unit prices in the submarket are as follows: one bedrooms $1,037, two bedrooms $1,238, and three bedrooms $1,551. The submarket's streak of seven consecutive quarterly gains, which began in Q2 2012, has increased asking rents by a cumulative total of 3.7%. The Southwest Riverside County submarket's current asking rent levels are higher than the San Bernardino/Riverside metro average of $1,099, while asking rent growth in the current quarter compares unfavorably to the metro average of 0.6%. Effective rents, which exclude the value of concessions offered to prospective tenants, advanced by 0.6% during the fourth quarter to an average of $1,175. Competitive Inventory, Household Formations, Absorption Net new household formations in San Bernardino/Riverside were 5,170 during the fourth quarter. Quarterly movement in the average occupancy level of market rate apartment properties rarely mirrors the period's total household formation or losses, but it is advisable to weigh longer-term economic and demographic trends as factors contributing to current demand. Since Q4 2003, household formations in San Bernardino/Riverside have averaged 1.7% per year, representing the average annual addition of 20,700 households. Over the same time period, the metro experienced an average annual absorption rate of 1,373 units. During the fourth quarter, metropolitan absorption totaled 545 units, of which the Southwest Riverside County submarket captured 39 units. Over the last four quarters, apartment absorption totaled 103 units, less than half the average annual absorption rate in the submarket of 248 units recorded since Q4 2003. The submarket's average vacancy rate declined by 50 basis points to 3.0% during the quarter, which is 4.1 percentage points lower than the long-term average, and 0.1 percentage points lower than the current metro average. Page 30
Submarket Analysis (Monthly Data) Prepared for Golden Eagle Multi Family Properties, LLC Apartment - January, 2014 Submarket: SW Riverside County Section 18 - Current Submarket Rent Details Asking Rent by Age Asking Rent Distribution Asking Rent Growth Rate Distribution Year Built Rent Before 1970 n/a 1970-1979 $912 1980-1989 $1,086 1990-1999 $1,121 2000-2009 $1,297 After 2009 $1,859 All $1,207 As of January 31, 2014 Number of Properties Low 25% Mean Median 75% High $934 $1,085 $1,207 $1,212 $1,306 $1,859 10 8 5 3 1 1 1 0 Under $1,051 $1,167 $1,283 $1,399 $1,515 $1,631 $1,747 $1,050 $1,166 $1,282 $1,398 $1,514 $1,630 $1,746 Over Number of Properties Low 25% Mean Median 75% High 0.1% 0.4% 0.6% 0.4% 0.4% 4.3% 26 Under 0.6% 1 0.7% 1.1% 0 0 0 0 0 1.2% 1.6% 1.7% 2.1% 2.2% 2.6% 2.7% 3.1% 3.2% 3.6% 2 3.7% Over 0 Negative Growth Positive Growth 29 As of January 31, 2014 90 days ending January 31, 2014 Section 19 - Rent Growth Comparisons Asking Rent Growth Quarterly Annualized 4Q13 3Q13 YTD Avg 1 Year 3 Year 5 Year SW Riverside Cty 0.5% 0.9% 0.4% 1.6% 1.7% 1.4% San Bernardino/Riverside 0.6% 0.5% 0.4% 1.5% 2.1% 0.7% West 0.9% 1.1% 0.8% 3.3% 2.9% 1.1% United States 0.8% 1.0% 0.8% 3.0% 2.7% 1.5% Period Ending: 12/31/13 09/30/13 12/31/13 12/31/13 12/31/13 12/31/13 Submarket Ranking 4Q13 3Q13 N/A N/A 9 2 144 94 447 300 12/31/13 09/30/13 * of 16 metro level submarkets ** of 240 regional submarkets *** of 834 U.S. submarkets 0.4% Monthly Asking Rent Growth Rate Trends 0.2% 0.0% -0.2% -0.4% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan SW Riverside Cty 0.1% -0.4% 0.4% 0.1% 0.2% -0.1% 0.3% 0.2% 0.4% 0.2% 0.2% 0.1% 0.3% San Bernardino/Riverside 0.2% 0.0% 0.0% 0.1% 0.1% 0.1% 0.2% 0.2% 0.1% 0.2% 0.2% 0.2% 0.3% West 0.2% 0.1% 0.2% 0.2% 0.2% 0.3% 0.4% 0.4% 0.3% 0.4% 0.3% 0.3% 0.2% United States 0.2% 0.1% 0.2% 0.2% 0.2% 0.3% 0.3% 0.4% 0.2% 0.4% 0.2% 0.2% 0.3% 2013 2014 SW Riverside Cty San Bernardino/Riverside West US As of January 31, 2014 Page 31
Submarket Analysis (Monthly Data) Prepared for Golden Eagle Multi Family Properties, LLC Apartment - January, 2014 Submarket: SW Riverside County Section 20 - Current Submarket Vacancy Details Vacancy Rate By Age Year Built Vac. Rate Before 1970 n/a 1970-1979 0.0% 1980-1989 3.2% 1990-1999 2.1% 2000-2009 3.0% After 2009 0.7% All 2.9% As of January 31, 2014 Number of Properties Vacancy Rate Distribution Low 25% Mean Median 75% High 0.0% 1.7% 2.9% 2.2% 3.9% 8.3% 7 7 6 5 1 1 1 1 Under 1.0% 1.1% 2.0% 2.1% 3.0% 3.1% 4.0% 4.1% 5.0% 5.1% 6.0% 6.1% 7.0% 7.1% Over As of January 31, 2014 Section 21 - Vacancy Rate Comparisons Vacancy Rates Quarterly Annualized 4Q13 3Q13 YTD Avg 1 Year 3 Year 5 Year SW Riverside Cty 3.0% 3.5% 3.6% 3.7% 5.0% 6.3% San Bernardino/Riverside 3.1% 3.5% 3.5% 3.6% 4.6% 5.6% West 3.5% 3.6% 3.6% 3.7% 4.4% 5.1% United States 4.2% 4.2% 4.3% 4.4% 5.1% 5.9% Period Ending: 12/31/13 09/30/13 12/31/13 12/31/13 12/31/13 12/31/13 Submarket Ranking 4Q13 3Q13 N/A N/A 8 8 101 123 257 315 12/31/13 09/30/13 * of 16 metro level submarkets ** of 240 regional submarkets *** of 834 U.S. submarkets 4.5% Monthly Metro Vacancy Rate Trends 4.0% 3.5% 3.0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan SW Riverside Cty 4.2% 4.1% 4.0% 4.0% 4.1% 3.9% 3.9% 3.7% 3.5% 3.5% 3.3% 3.0% 2.9% San Bernardino/Riverside 3.9% 3.9% 3.8% 3.7% 3.7% 3.6% 3.6% 3.6% 3.5% 3.4% 3.3% 3.1% 2.9% West 3.8% 3.8% 3.7% 3.7% 3.7% 3.7% 3.7% 3.7% 3.6% 3.7% 3.6% 3.5% 3.4% United States 4.5% 4.5% 4.4% 4.3% 4.3% 4.3% 4.3% 4.3% 4.2% 4.3% 4.3% 4.2% 4.0% 2013 2014 SW Riverside Cty San Bernardino/Riverside West US As of January 31, 2014 Page 32
Submarket Analysis (Monthly Data) Prepared for Golden Eagle Multi Family Properties, LLC Apartment - January, 2014 Submarket: SW Riverside County Section 22 - Submarket Unit Mix Rent Details Current Submarket Average Rents and Sizes Asking Rent Growth January Quarterly Annualized Rent Avg. SF Avg. Rent PSF 4Q13 3Q13 YTD 1 Year 3 Year 5 Year Studio/Efficiency N/A N/A N/A N/A N/A N/A N/A N/A N/A One Bedroom $1,041 720 $ 1.45 0.0% 0.4% 1.6% 1.3% 1.4% 1.4% Two Bedroom $1,242 999 $ 1.24 0.5% 1.1% 1.7% 1.3% 1.9% 1.6% Three Bedroom $1,556 1261 $ 1.23 1.6% 1.2% 4.1% 3.7% 1.3% 0.6% Average over period ending: 12/31/13 09/30/13 12/31/13 12/31/13 12/31/13 12/31/13 Asking Rent Comparisons Asking Rent Per SF $1,500 $1.50 $1,000 $1.00 $500 $0.50 $0 $0.00 Studio 1 BR 2 BR 3 BR SW Riverside County San Bernardino/Riverside Studio 1 BR 2 BR 3 BR SW Riverside County San Bernardino/Riverside As of January 31, 2014 As of January 31, 2014 Studio 1 BR 2 BR 3 BR SW Riverside County N/A $1,041 $1,242 $1,556 San Bernardino/Riverside $762 $975 $1,156 $1,502 As of January 31, 2014 Studio 1 BR 2 BR 3 BR SW Riverside County N/A $ 1.45 $ 1.24 $ 1.23 San Bernardino/Riverside $ 1.57 $ 1.39 $ 1.21 $ 1.21 As of January 31, 2014 Section 23 - Submarket Unit Mix Inventory Details Submarket Unit Mix 8.9% Average Unit Size (SF) 31.1% 1,000 500 60.0% Studios 1 BR 2 BR 3 BR + 0 Studio 1 BR 2 BR 3 BR SW Riverside County San Bernardino/Riverside As of January 31, 2014 As of January 31, 2014 Page 33
Submarket Analysis (Monthly Data) Prepared for Golden Eagle Multi Family Properties, LLC Apartment - January, 2014 Submarket: SW Riverside County Section 24 - Submarket Inventory Details Inventory By Building Age Year Built Percent Before 1970 0.0% 1970-1979 2.0% 1980-1989 39.0% 1990-1999 13.0% 2000-2009 43.0% After 2009 4.0% All 100.0% As of January 31, 2014 Apartment Stock Traits Submarket Low Mean Median High Year Built 1971 1997 1999 2010 Size (units) 114 259 224 492 Distance to Highway (miles) 0.1 1 0.8 4.2 Distance to CBD (miles) 10.9 16 16 18.6 Distance to Landmark (miles) 22.8 24.5 24 29.3 As of January 31, 2014 Landmark =Coast Average Submarket Lease Terms Free Rent (mos) Expenses % (Apartment) 0.27 36.2% As of January 31, 2014 Section 25 - Inventory Growth Comparisons Inventory Growth Rates Quarterly Annualized 4Q13 3Q13 YTD Avg 1 Year 3 Year 5 Year SW Riverside Cty 0.0% 0.0% 0.0% 0.0% 0.0% 1.2% San Bernardino/Riverside 0.0% 0.0% 0.0% 0.0% 0.2% 0.5% West 0.4% 0.3% 0.3% 1.1% 0.6% 0.8% United States 0.4% 0.4% 0.3% 1.3% 0.8% 1.0% Period Ending: 12/31/13 09/30/13 12/31/13 12/31/13 12/31/13 12/31/13 Submarket Ranking 4Q13 3Q13 N/A N/A 9 9 176 176 569 570 12/31/13 09/30/13 * of 16 metro level submarkets ** of 240 regional submarkets *** of 834 U.S. submarkets % Metro Inventory Growth Rate Trends 0.40 0.35 0.30 0.25 0.20 0.15 0.10 0.05 0.00 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 SW Riverside Cty San Bernardino/Riverside West US As of January 31, 2014 Page 34
Submarket Analysis (Monthly Data) Prepared for Golden Eagle Multi Family Properties, LLC Apartment - January, 2014 Submarket: SW Riverside County Section 26 - Construction/Absorption Change Most Recent Three Months Construction and Absorption Quarterly November - January 4Q13 3Q13 YTD Avg Units Built Units Absorbed Units Built Units Absorbed Units Built Units Absorbed Units Built Units Absorbed SW Riverside Cty 0 47 0 39 0 32 0 103 San Bernardino/Riverside 0 755 0 545 0 204 0 1,310 Period ending: 01/31/14 01/31/14 12/31/13 12/31/13 09/30/13 09/30/13 12/31/13 12/31/13 Units Built Annualized 1 Year History 3 Year History 5 Year History Units Absorbed Con/Abs Ratio Units Built Units Absorbed Con/Abs Ratio Units Built Units Absorbed SW Riverside Cty 0 103 0.0 0 116 0.0 90 180 0.5 San Bernardino/Riverside 0 1,310 0.0 232 1,721 0.1 712 1,686 0.4 Con/Abs Ratio Average over period ending: 12/31/13 12/31/13 12/31/13 12/31/13 12/31/13 12/31/13 12/31/13 12/31/13 12/31/13 Construction/Absorption and Vacancy 20 4 3 Number of Units 10 0 2 1 Vacancy Rate (%) -10 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan 2013 2014 0 Vacancy Rate Construction Absorption As of January 31, 2014 Page 35
Submarket Analysis (Monthly Data) Prepared for Golden Eagle Multi Family Properties, LLC Apartment - January, 2014 Submarket: SW Riverside County Section 27 - Submarket Area Map: SW Riverside County Metro:San Bernardino/Riverside Submarket:SW Riverside County Escondido Frwy Clinton Keith Rd Murrieta Township Boundary Baxter Rd Central St Page 36
Property Report Murrieta, CA Metro Analysis Apartment Powered by Reis, inc.
Prepared for Golden Eagle Multi Family Properties, LLC Metro Analysis (Monthly Data) Apartment - January, 2014 Metro: San Bernardino/Riverside Section 28 - Executive Briefing on Metro Conditions Average Asking Rent $1,099 Up 0.6% from Q3 2013. Fastest rate of increase in four quarters. Expected to finish 2014 at $1,127. Average Vacancy Rate 3.1% Down 40 basis points from Q3 2013. Among the 20 lowest vacancies nationally. Expected to finish 2014 at 3.2%. Market Overview The San Bernardino/Riverside apartment market is comprised of 132,242 units in sixteen geographic concentrations ranging in size from the 16,647 unit University City/Moreno Valley submarket to the Perris submarket, which accounts for 2,903 units. In the ten-year period since Q4 2003, the University City/Moreno Valley submarket has experienced the greatest introduction of new inventory, 3,667 units, amounting to 23.3% of all new market rate rentals added to the market. Asking And Effective Rent Asking rents climbed by 0.6% during the fourth quarter of 2013 to an average of $1,099. Mean unit prices in the metro are as follows: studios $760, one bedrooms $972, two bedrooms $1,153, and three bedrooms $1,498. This advance extends the market's streak of gains to thirteen quarters, during which asking rents have risen by a total of 6.5%. Since Q4 2003, the metro as a whole has recorded an annual average increase of 2.4%. Effective rents, which exclude the value of concessions offered to prospective tenants, rose by 0.7% during the fourth quarter to an average of $1,071. Although the majority of the San Bernardino/Riverside MSA's sixteen apartment submarkets contributed to the metro's recent rent growth, it is helpful to observe that the 1.5% asking rent growth rate of the past four quarters compares unfavorably to the metro's long term performance. Competitive Inventory, Household Formations, Absorption The fourth quarter added 5,170 net new households to the San Bernardino/Riverside MSA. Absorption of market rate rental units may not immediately reflect quarterly total household formations or losses, but it is prudent to consider longer-term economic and demographic performance as influential upon current occupancy levels. Since Q4 2003, household formations in San Bernardino/Riverside have averaged 1.7% per year, representing the average annual addition of 20,700 households. Demand attributable in part to this pace of household formations contributed to the absorption of 545 units during the fourth quarter, while new development added no units to the metro inventory; the net effect of absorption and construction dynamics caused the vacancy rate to declined by 40 basis points to 3.1%. Over the last four quarters, apartment absorption totaled 1,310 units, 4.6% lower than the average annual absorption rate in the market of 1,373 units recorded since Q4 2003. In a long-term context, the market's fourth quarter vacancy rate is 2.3 percentage points lower than the 5.4% average recorded since Q4 2003. Page 38
Prepared for Golden Eagle Multi Family Properties, LLC Metro Analysis (Monthly Data) Apartment - January, 2014 Metro: San Bernardino/Riverside Section 29 - Current Metro Rent Details Asking Rent by Age Asking Rent Distribution Asking Rent Growth Rate Distribution Year Built Rent Before 1970 $851 1970-1979 $969 1980-1989 $1,039 1990-1999 $1,174 2000-2009 $1,381 After 2009 $1,455 All $1,102 As of January 31, 2014 Number of Properties Low 25% Mean Median 75% High $697 $925 $1,102 $1,088 $1,268 $1,717 142 143 131 95 77 36 22 19 Low 25% Mean Median 75% High - 0.7% 0.4% 0.7% 0.6% 0.9% 2.3% 256 Number of Properties 174 106 44 22 19 29 15 Under $825 $826 $954 $953 $1,081 $1,082 $1,210 $1,338 $1,466 $1,594 $1,209 $1,337 $1,465 $1,593 Over Under - 0.4% 0.0% - 0.5% - 0.1% 0.3% 0.4% 0.7% 0.8% 1.1% 1.2% 1.5% 1.6% 1.9% 2.0% Over 41 Negative Growth Positive Growth 624 As of January 31, 2014 90 days ending January 31, 2014 Section 30 - Rent Growth Comparisons Asking Rent Growth Quarterly Annualized 4Q13 3Q13 YTD Avg 1 Year 3 Year 5 Year San Bernardino/Riverside 0.6% 0.5% 0.4% 1.5% 2.1% 0.7% West 0.9% 1.1% 0.8% 3.3% 2.9% 1.1% United States 0.8% 1.0% 0.8% 3.0% 2.7% 1.5% Period Ending: 12/31/13 09/30/13 12/31/13 12/31/13 12/31/13 12/31/13 Metro Ranking 4Q13 3Q13 N/A N/A 16 17 52 68 12/31/13 09/30/13 * of 19 regional metros ** of 82 U.S. metros 0.4% Monthly Asking Rent Growth Rate Trends 0.3% 0.2% 0.1% 0.0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan San Bernardino/Riverside 0.2% 0.0% 0.0% 0.1% 0.1% 0.1% 0.2% 0.2% 0.1% 0.2% 0.2% 0.2% 0.3% West 0.2% 0.1% 0.2% 0.2% 0.2% 0.3% 0.4% 0.4% 0.3% 0.4% 0.3% 0.3% 0.2% United States 0.2% 0.1% 0.2% 0.2% 0.2% 0.3% 0.3% 0.4% 0.2% 0.4% 0.2% 0.2% 0.3% 2013 2014 San Bernardino/Riverside West US As of January 31, 2014 Page 39
Metro Analysis (Monthly Data) Prepared for Golden Eagle Multi Family Properties, LLC Apartment - January, 2014 Metro: San Bernardino/Riverside Section 31 - Current Metro Vacancy Details Vacancy Rate By Age Year Built Vac. Rate Before 1970 5.0% Vacancy Rate Distribution Low 25% Mean Median 75% High 0.0% 1.2% 2.9% 2.3% 4.2% 13.0% 1970-1979 3.1% 1980-1989 3.4% 1990-1999 3.3% 2000-2009 3.2% After 2009 4.1% All 2.9% As of January 31, 2014 Number of Properties 261 186 84 55 25 13 11 30 Under 1.6% 1.7% 3.2% 3.3% 4.8% 4.9% 6.4% 6.5% 8.0% 8.1% 9.6% 9.7% 11.3% 11.2% Over As of January 31, 2014 Section 32 - Vacancy Rate Comparisons Vacancy Rates Quarterly Annualized 4Q13 3Q13 YTD Avg 1 Year 3 Year 5 Year San Bernardino/Riverside 3.1% 3.5% 3.5% 3.6% 4.6% 5.6% West 3.5% 3.6% 3.6% 3.7% 4.4% 5.1% United States 4.2% 4.2% 4.3% 4.4% 5.1% 5.9% Period Ending: 12/31/13 09/30/13 12/31/13 12/31/13 12/31/13 12/31/13 Metro Ranking 4Q13 3Q13 N/A N/A 7 9 15 23 12/31/13 09/30/13 * of 19 regional metros ** of 82 U.S. metros Monthly Metro Vacancy Rate Trends 4.5% 4.0% 3.5% 3.0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan San Bernardino/Riverside 3.9% 3.9% 3.8% 3.7% 3.7% 3.6% 3.6% 3.6% 3.5% 3.4% 3.3% 3.1% 2.9% West 3.8% 3.8% 3.7% 3.7% 3.7% 3.7% 3.7% 3.7% 3.6% 3.7% 3.6% 3.5% 3.4% United States 4.5% 4.5% 4.4% 4.3% 4.3% 4.3% 4.3% 4.3% 4.2% 4.3% 4.3% 4.2% 4.0% 2013 2014 San Bernardino/Riverside West US As of January 31, 2014 Page 40
Prepared for Golden Eagle Multi Family Properties, LLC Metro Analysis (Monthly Data) Apartment - January, 2014 Metro: San Bernardino/Riverside Section 33 - Metro Unit Mix Rent Details Current Metro Average Rents and Sizes Asking Rent Growth January Quarterly Annualized Rent Avg. SF Avg. Rent PSF 4Q13 3Q13 YTD 1 Year 3 Year 5 Year Studio/Efficiency $762 484 $ 1.57 0.1% - 0.1% 1.1% 0.8% 2.2% 0.5% One Bedroom $975 703 $ 1.39 1.0% 0.6% 2.6% 2.3% 2.6% 1.0% Two Bedroom $1,156 958 $ 1.21 0.3% 0.4% 1.4% 1.1% 1.9% 0.6% Three Bedroom $1,502 1239 $ 1.21 1.1% 0.7% 1.7% 1.4% 1.4% 0.6% Average over period ending: 12/31/13 09/30/13 12/31/13 12/31/13 12/31/13 12/31/13 Asking Rent Comparisons Asking Rent Per SF $1,500 $1,000 $500 $2.00 $1.50 $1.00 $0.50 $0 $0.00 Studio 1 BR 2 BR 3 BR San Bernardino/Riverside West US Studio 1 BR 2 BR 3 BR San Bernardino/Riverside West US As of January 31, 2014 As of January 31, 2014 Studio 1 BR 2 BR 3 BR San Bernardino/Riverside $762 $975 $1,156 $1,502 West $1,089 $1,245 $1,504 $1,712 United States $1,135 $1,131 $1,338 $1,537 As of January 31, 2014 Studio 1 BR 2 BR 3 BR San Bernardino/Riverside $ 1.57 $ 1.39 $ 1.21 $ 1.21 West $ 2.02 $ 1.63 $ 1.40 $ 1.28 United States $ 2.06 $ 1.42 $ 1.19 $ 1.08 As of January 31, 2014 Section 34 - Metro Unit Mix Inventory Details Metro Unit Mix 5.8% 2.8% 1,500 Average Unit Size (SF) 1,000 35.0% 500 56.3% Studios 1 BR 2 BR 3 BR + 0 Studio 1 BR 2 BR 3 BR San Bernardino/Riverside West US As of January 31, 2014 As of January 31, 2014 Page 41
Prepared for Golden Eagle Multi Family Properties, LLC Metro Analysis (Monthly Data) Apartment - January, 2014 Metro: San Bernardino/Riverside Section 35 - Metro Inventory Details Inventory By Building Age Year Built Percent Before 1970 5.0% 1970-1979 11.0% 1980-1989 54.0% 1990-1999 9.0% 2000-2009 20.0% After 2009 2.0% All 100.0% As of January 31, 2014 Apartment Stock Traits Metro Low Mean Median High Year Built 1961 1986 1986 2012 Size (units) 27 157 120 714 Distance to Highway (miles) 0.1 0.8 0.6 9.7 Distance to CBD (miles) 6.2 32 31.7 46.8 Distance to Landmark (miles) 6.2 21 20.2 71.8 As of January 31, 2014 Landmark =Coast Average Metro Lease Terms Free Rent (mos) Expenses % (Apartment) 0.32 36.2% As of January 31, 2014 Section 36 - Inventory Growth Comparisons Inventory Growth Rates Quarterly Annualized 4Q13 3Q13 YTD Avg 1 Year 3 Year 5 Year San Bernardino/Riverside 0.0% 0.0% 0.0% 0.0% 0.2% 0.5% West 0.4% 0.3% 0.3% 1.1% 0.6% 0.8% United States 0.4% 0.4% 0.3% 1.3% 0.8% 1.0% Period Ending: 12/31/13 09/30/13 12/31/13 12/31/13 12/31/13 12/31/13 Metro Ranking 4Q13 3Q13 N/A N/A 17 16 64 64 12/31/13 09/30/13 * of 19 regional metros ** of 82 U.S. metros % Metro Inventory Growth Rate Trends 0.40 0.35 0.30 0.25 0.20 0.15 0.10 0.05 0.00 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 San Bernardino/Riverside West US As of January 31, 2014 Page 42
Metro Analysis (Monthly Data) Prepared for Golden Eagle Multi Family Properties, LLC Apartment - January, 2014 Metro: San Bernardino/Riverside Section 37 - Construction/Absorption Change Most Recent Three Months Construction and Absorption Quarterly November - January 4Q13 3Q13 YTD Avg Units Built Units Absorbed Units Built Units Absorbed Units Built Units Absorbed Units Built Units Absorbed San Bernardino/Riverside 0 755 0 545 0 204 0 1,310 West 8,205 16,509 10,145 13,142 7,566 9,266 32,280 43,140 Period ending: 01/31/14 01/31/14 12/31/13 12/31/13 09/30/13 09/30/13 12/31/13 12/31/13 Units Built Annualized 1 Year History 3 Year History 5 Year History Units Absorbed Con/Abs Ratio Units Built Units Absorbed Con/Abs Ratio Units Built Units Absorbed San Bernardino/Riverside 0 1,310 0.0 232 1,721 0.1 712 1,686 0.4 West 32,280 43,140 0.7 19,833 41,019 0.5 23,283 35,368 0.7 Con/Abs Ratio Average over period ending: 12/31/13 12/31/13 12/31/13 12/31/13 12/31/13 12/31/13 12/31/13 12/31/13 12/31/13 300 Construction/Absorption and Vacancy 4 Number of Units 200 100 0 3 2 1 Vacancy Rate (%) -100 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan 2013 2014 0 Vacancy Rate Construction Absorption As of January 31, 2014 Page 43
Prepared for Golden Eagle Multi Family Properties, LLC Metro Analysis (Monthly Data) Apartment - January, 2014 Metro: San Bernardino/Riverside Section 38 - Economic and Demographic Trends San Bernardino/Riverside Economic/Demographic Trends Percentage Change 2.0% 0.0% -2.0% -4.0% -6.0% 2009 2010 2011 2012 2013 Total Employment Households Avg HH Income Population Provided by Moody's Economy.com, Period ending 12/31/13 Total Employment Growth Trends Metro vs. Region & U.S. Percentage Change 2.0% 0.0% -2.0% -4.0% -6.0% 2009 2010 2011 2012 2013 San Bernardino/Riverside West US Provided by Moody's Economy.com, Period ending 12/31/13 San Bernardino/Riverside Population/Household Growth Trends Percentage Change 1.70% 1.60% 1.50% 1.40% 1.30% 1.20% 1.10% 2009 2010 2011 2012 2013 Population Households Provided by Moody's Economy.com, Period ending 12/31/13 Page 44
Prepared for Golden Eagle Multi Family Properties, LLC Metro Analysis (Monthly Data) Apartment - January, 2014 Metro: San Bernardino/Riverside Section 39 - Metro Area Map: San Bernardino/Riverside San Bernardino/Riverside Submarkets 1 Upland 2 North Ontario 3 South Ontario/Chino 4 Rancho Cucamonga 5 Fontana/Rialto 6 San Bernardino 7 Colton/Loma Linda 8 Riverside County/Corona 9 Riverside/North Magnolia 10 University City/Moreno Valley 11 SW Riverside County 12 Victorville 13 Perris 14 Palm Springs/Palm Desert 16 Hemet 17 Indio/La Quinta/Coachella Click here for a glossary of terms, or go to https://www.reisreports.com/reisseglossary.pdf Page 45