REDWOOD CROSSINGS DEVELOPMENT SITE A 158 UNIT APARTMENT COMMUNITY LOCATED IN SONOMA COUNTY

WALMART GRATON RESORT & CASINO GOLF COURSE DRIVE THE HOME DEPOT IN-N-OUT BURGER FOXTAIL GOLF CLUB MOUNTAIN SHADOWS 176 UNITS SCANDIA REDWOOD CROSSINGS THE PRESS DEMOCRAT REDWOOD DRIVE FIORI ESTATES 244 UNITS COSTCO REDWOOD CROSSINGS DEVELOPMENT SITE A 158 UNIT APARTMENT COMMUNITY LOCATED IN SONOMA COUNTY EXCLUSIVE OFFERING MEMORANDUM RIC RUSSELL Senior Managing Director (415) 677-0448 ric.russell@dtz.com CA LIC #00848691 SCOTT MACDONALD Business Manager (415) 677-0462 scott.macdonald@dtz.com CA LIC #01422005 ERIC KATHREIN Associate (415) 677-0449 eric.kathrein@dtz.com CA LIC #01896107

Confidentiality Agreement Cassidy Turley Northern California, Inc., d/b/a DTZ ( Broker ) has been retained on an exclusive basis to market the property described herein ( Property ). Broker has been authorized by the Seller of the Property ( Seller ) to prepare and distribute the enclosed information ( Material ) for the purpose of soliciting offers to purchase from interested parties. More detailed financial, title and tenant lease information may be made available upon request following the mutual execution of a letter of intent or contract to purchase between the Seller and a prospective purchaser. You are invited to review this opportunity and make an offer to purchase based upon your analysis. If your offer results in the Seller choosing to open negotiations with you, you will be asked to provide financial references. The eventual purchaser will be chosen based upon an assessment of price, terms, ability to close the transaction and such other matters as the Seller deems appropriate. The Material is intended solely for the purpose of soliciting expressions of interest from qualified investors for the acquisition of the Property. The Material is not to be used for any other purpose or made available to any other person without the express written consent of Broker or Seller. The Material does not purport to be all-inclusive or to contain all of the information that a prospective buyer may require. The information contained in the Material has been obtained from the Seller and other sources and has not been verified by the Seller, its affiliates or Broker. The pro forma is delivered only as an accommodation and neither the Seller, Broker, nor any of their respective affiliates, agents, representatives, employees, parents, subsidiaries, members, managers, partners, shareholders, directors, or officers, makes any representation or warranty regarding such pro forma. Purchaser must make its own investigation of the Property and any existing or available financing, and must independently confirm the accuracy of the projections contained in the pro forma. Seller reserves the right, for any reason, to withdraw the Property from the market. Seller has no obligation, express or implied, to accept any offer. Further, Seller has no obligation to sell the Property unless and until the Seller executes and delivers a signed agreement of purchase and sale on terms acceptable to the Seller, in its sole discretion. By submitting an offer, a purchaser will be deemed to have acknowledged the foregoing and agreed to release Seller and Broker from any liability with respect thereto. All inquiries related to the property should be directed to: Ric Russell Senior Managing Director (415) 677-0448 rrussell@ctbt.com Scott MacDonald Business Manager (415) 677-0462 smacdonald@ctbt.com Eric Kathrein Associate (415) 677-0449 eric.kathrein@dtz.com believe to be reliable. We do not warrant its accuracy or completeness.

Offering Overview DTZ is pleased to exclusively offer qualified parties the opportunity to acquire Redwood Crossings (the Property ), a proposed 158 unit apartment development site located in Rohnert Park, California. Comprised of a single ±6.60 acre parcel of vacant land situated on Business Park Drive, the Property is well-suited for a garden-style apartment community composed of 1- and 2-bedroom rental units. Redwood Crossings is very well-located near Highway 101 within Rohnert Park and will provide future residents excellent access to local and regional employment hubs. The 100% fee simple interest in the Property is offered free and clear of financing for $6,160,900. Price $6,160,900 Review All offers will be reviewed upon receipt Address No Current Mailing Address Rohnert Park, CA 94928 APN 143-040-111 Land Area (Acres) 6.60 Land Area (Square Feet) ±287,457 Current Zoning Industrial (I-L) Current Land Use Commercial Acreage REDWOOD CROSSINGS Proposed Use Garden-Style Apartments Proposed # of Rental Units 158 Proposed Development Density 23.94 Units per Acre Proposed Rentable Square Feet 161,950 Proposed FAR 0.56 NOTE: The Property will require rezoning/entitlements in order for an apartment community to be developed at this site. Seller expects any offers for the Property to address this matter as a deal point. believe to be reliable. We do not warrant its accuracy or completeness. 1

Property Location REDWOOD CROSSINGS REDWOOD CROSSINGS believe to be reliable. We do not warrant its accuracy or completeness. 2

About the Area Sonoma County Rohnert Park is set within the renowned wine region of Sonoma County and is located just 45 miles north of San Francisco. Sonoma County is an international tourist destination and a $1.47 billion annual industry. The world famous wines and spectacular beauty of Sonoma County attract 7.5 million people annually, equating to about 21,000 visitors per day. City of Rohnert Park Rohnert Park, Sonoma County s 3rd largest city, is thoughtfully designed as one of the first planned communities in the United States. Each neighborhood is designed around a park and elementary school. Bikeways and walkways connect its treelined boulevards and attractive neighborhoods. It is an ideal city to raise a family with the Cotati-Rohnert Park Unified School District collecting distinguished awards. The City is surrounded by an industry of nationally sought after organic and boutique vegetables, fruits and cheeses. Rohnert Park also has a business draw for small to large sized business including national and international companies. Rohnert Park is home to 41,976 residents. The household income has grown by 15% since 2012 to $69,567. New Development & Graton Casino New developments over the past several years have helped strengthen Rohnert Park s economy. One major development was the $800 Million Graton Resort & Casino that opened in November of 2013. The 340,000 square-foot casino has helped increase employment significantly, by adding more than 2,000 jobs. CITY DEMOGRAPHICS Rohnert Park Population Profile Population 2014 41,976 Population 2010 40,971 Population 2019 Est. 43,600 Estimated Population Growth 2010-2019 4% Housing Profile Number of Households 2014 15,808 Average Household Income 2014 $69,567 Average Home Value $299,888 believe to be reliable. We do not warrant its accuracy or completeness. 3

East-Facing Aerial SCANDIA THE PRESS DEMOCRAT REDWOOD CROSSINGS COSTCO FIORI ESTATES 244 UNITS believe to be reliable. We do not warrant its accuracy or completeness. 4

Proposed Unit Mix Unit Square Feet Projected Rental Rate Type # % Unit Total $ $/Sq Ft Total 1+1 79 50.0% 850 67,150 $1,785 $2.10 $141,015 2+2 79 50.0% 1,200 94,800 $2,220 $1.85 $175,380 Total/ Avg 158 100.0% 1,025 161,950 $2,003 $1.95 $316,395 Unit Mix Summary Rental Rate Summary $2,500 $2,220 $2,000 $1,785 79 Units; 50.0% 79 Units; 50.0% $1,500 $1,000 $500 $0 1+1 2+2 1+1 2+2 Projected Rental Rate believe to be reliable. We do not warrant its accuracy or completeness. 5

Pro Forma Operating Statement - Income Detail Operations Pro Forma Income Annual $/Month $/Unit $/Sq Ft %SGR Potential Market Rent 1 $3,796,740 $316,395 $24,030 $23.44 100.0% Gain (Loss) to Lease $0 $0 $0 $0.00 0.0% Potential Rental Revenue $3,796,740 $316,395 $24,030 $23.44 100.0% Tenant Miscellaneous 2 $18,984 $1,582 $120 $0.12 0.5% Damages/Cleaning 3 $9,492 $791 $60 $0.06 0.3% RUBS Revenue 4 $94,800 $7,900 $600 $0.59 2.5% Laundry Revenue 5 $0 $0 $0 $0.00 0.0% NSF Fees & Late Charges 6 $7,593 $633 $48 $0.05 0.2% Credit Checks 7 $2,765 $230 $18 $0.02 0.1% Garages 8 $26,400 $2,200 $167 $0.16 0.7% Total Potential Gross Revenue $3,956,774 $329,731 $25,043 $24.43 104.2% General Vacancy Loss 9 -$197,839 -$16,487 -$1,252 -$1.22-5.2% Collection Loss $0 $0 $0 $0.00 0.0% Effective Gross Revenue $3,758,935 $313,245 $23,791 $23.21 99.0% 1. Potential Market Rent equals the annualized rental rate projections from the previous page. 2. Tenant Miscellaneous equals 0.50% of Potential Market Rent. 3. Damages/Cleaning equals 0.25% of Potential Market Rent. 4. RUBS Revenue assumes $50 per rental unit. 5. Washer/Dryer hook-ups will be in each unit, no laundry income is assumed. 6. NSF Fees & Late Charges equals 0.20% of Potential Market Rent. 7. Credit Checks assumes 79 turns annually at $35 per turn. 8. 40 Garages are assumed at $75 per month. 9. A General Vacancy Loss equal to 5.00% of Total Potential Gross Revenue is assumed. Expenses Annual $/Month $/Unit $/Sq Ft %SGR Operating Expenses $763,748 $63,646 $4,834 $4.72 20.1% Non-Operating Expenses $412,480 $34,373 $2,611 $2.55 10.9% Replacements/ Reserves $23,700 $1,975 $150 $0.15 0.6% Total Expenses $1,199,928 $99,994 $7,594 $7.41 31.6% Net Operating Income $2,559,007 $213,251 $16,196 $15.80 67.4% EXPENSE DETAIL ON FOLLOWING PAGE believe to be reliable. We do not warrant its accuracy or completeness. 6

Pro Forma Operating Statement - Expense Detail Operations Pro Forma Income Annual $/Month $/Unit $/Sq Ft %SGR Effective Gross Revenue $3,758,935 $313,245 $23,791 $23.21 99.0% Expenses Annual $/Month $/Unit $/Sq Ft %SGR Administration 10 $31,600 $2,633 $200 $0.20 0.8% Contract Services 11 $23,700 $1,975 $150 $0.15 0.6% Maintenance & Repairs 12 $94,800 $7,900 $600 $0.59 2.5% Marketing/Promotions 13 $0 $0 $0 $0.00 0.0% Management Fee 14 $112,768 $9,397 $714 $0.70 3.0% Payroll - Wages 15 $225,000 $18,750 $1,424 $1.39 5.9% Payroll - Employee Unit(s) 16 $53,280 $4,440 $337 $0.33 1.4% Payroll - Other 17 $40,000 $3,333 $253 $0.25 1.1% Utilities 18 $182,600 $15,217 $1,156 $1.13 4.8% Operating Expenses $763,748 $63,646 $4,834 $4.72 20.1% Insurance 19 $47,400 $3,950 $300 $0.29 1.2% Real Estate Taxes 20 $365,000 $30,417 $2,310 $2.25 9.6% Special Assessments 21 $80 $7 $1 $0.00 0.0% Non-Operating Expenses $412,480 $34,373 $2,611 $2.55 10.9% 10. Administration equals $200 per unit. 11. Contract Services equal $150 per unit. 12. Maintenance & Repairs equal $600 per unit. 13. It is assumed that free internet marketing websites will utilized for Marketing/Promotions. 14. Management Fee is assumed to equal 3.00% of Potential Rental Revenue. 15. Payroll - Wages assumes 2 employees working the leasing office and 2 maintenance employees. 16. Payroll - Employee Unit(s)assumes free rent for (2) 2+2 units. 17. Payroll - Other includes payroll taxes, employee benefits and workers comp insurance. 18. Insurance equals $300 per unit. 19. Real Estate Taxes equal 1.189% of assessed value. 20. Special Assessments are actual. 21. Replacements/Reserves equal $150 per unit. Replacements/Reserves 22 $23,700 $1,975 $150 $0.15 0.6% Total Expenses $1,199,928 $99,994 $7,594 $7.41 31.6% Net Operating Income $2,559,007 $213,251 $16,196 $15.80 67.4% INCOME DETAIL ON PREVIOUS PAGE believe to be reliable. We do not warrant its accuracy or completeness. 7

REDWOOD CROSSINGS Multi-family Investments Overview of Comparable Rental Properties Subject Property Comparable #1 Comparable #2 Comparable #3 Property Redwood Crossings Fiori Estates 1 Windsor at Redwood Creek Mountain Shadows Total/Average 2 Address -- 5102 Dowdell Avenue 600 Rohnert Park Expressway 160 Golf Course Drive -- Built -- 2015 2005 2002 2008 Units 158 244 232 176 652 Density (Units/Acre) 24.00 21.86 18.86 20.25 20.19 Total Sq Ft 161,950 -- 238,512 181,816 420,328 3 Avg Sq Ft 1,025 971 1,028 1,033 1,008 Avg Ask Rent $2,003 $2,141 $1,978 $1,935 $2,027 Avg Ask $/Sq Ft $1.95 $2.20 $1.92 $1.87 $2.01 Vacancy -- -- 5.2% 6.3% 5.6% 3 Concessions -- -- None None -- EFFECTIVE RENTAL RATES # of 1+1s 79 -- 84 80 164 3 Avg Sq Ft 850 787 831 790 811 3 Avg Ask Rent $1,785 $1,859 $1,778 $1,980 $1,728 3 $/Sq Ft $2.10 $2.36 $2.14 $2.12 $2.13 3 # of 2+2s 79 -- 84 120 204 3 Avg Sq Ft 1,200 1,202 1,195 1,178 1,184 3 Avg Ask Rent $2,220 $2,493 $2,026 $2,148 $2,098 3 $/Sq Ft $1.85 $2.07 $1.69 $1.82 $1.77 3 Notes 1 Unit mix information is currently unavailable for Fiori Estates. Calculations relating to this property are not weighted. 2 Total/Average do not include Subject Property. 3 These figures do not include Firoi Estates. believe to be reliable. We do not warrant its accuracy or completeness. 8

Locations of Comparable Rental Properties Property S. Redwood Crossings Rohnert Park, CA 94928 1. Fiori Estates 5102 Dowdell Avenue Rohnert Park, CA 94928 2. Windsor at Redwood Creek 600 Rohnert Park Expressway Rohnert Park, CA 94928 3. Mountain Shadows 160 Golf Course Drive Rohnert Park, CA 94928 REDWOOD CROSSING believe to be reliable. We do not warrant its accuracy or completeness. 9

Comparable Rental Communities Comparable #1 Type Units % Sq Ft High Low Average $/Sq Ft Deposit Fiori Estates 1+1 -- -- 705 $1,765 $1,765 $1,765 $2.50 $250 5102 Dowdell Avenue 1+1 -- -- 712 $1,760 $1,760 $1,760 $2.47 $250 Rohnert Park, CA 94928 1+1 -- -- 743 $1,770 $1,770 $1,770 $2.38 $250 (707) 241-9426 1+1 -- -- 825 $1,880 $1,880 $1,880 $2.28 $250 1+1 -- -- 949 $2,120 $2,120 $2,120 $2.23 $250 2+2 -- -- 1,076 $2,295 $2,295 $2,295 $2.13 $300 2+2 -- -- 1,191 $2,440 $2,440 $2,440 $2.05 $300 2+2 -- -- 1,193 $2,435 $2,435 $2,435 $2.04 $300 Built Sq Ft Vacancy 3+2 -- -- 1,346 $2,800 $2,800 $2,800 $2.08 $350 2015 -- -- Total/ Avg 244 -- -- -- -- -- -- -- Air Conditioning Yes Dishwasher Yes Leasing Center Yes Electricity Tenant Balcony/ Patio Yes Fitness Center Yes Parking Covered Gas Tenant Clubhouse Yes Laundry In Unit Swimming Pool Yes W/S/T Tenant Comments: Development density of 21.86 units per acre. Developed by AG Spanos. Construction near full completion. Ground floor garages in some buildings. Comparable #2 Type Units % Sq Ft High Low Average $/Sq Ft Deposit Windsor at Redwood Creek 1+1 80 34.5% 790 $1,675 $1,675 $1,675 $2.12 $500 600 Rohnert Park Expressway 2+1 24 10.3% 932 $1,980 $1,980 $1,980 $2.12 $500 Rohnert Park, CA 94928 2+2 72 31.0% 1,136 $2,110 $2,110 $2,110 $1.86 $500 (707) 584-9000 2+2 48 20.7% 1,240 $2,205 $2,205 $2,205 $1.78 $500 3+2 8 3.4% 1,454 $2,465 $2,465 $2,465 $1.70 $500 Built Sq Ft Vacancy 2005 238,512 5.2% Total/ Avg 232 100.0% 1,028 -- -- $1,978 $1.92 -- Air Conditioning Yes Dishwasher Yes Leasing Center Yes Electricity Tenant Balcony/ Patio Yes Fitness Center Yes Parking Covered Gas Tenant Clubhouse Yes Laundry In Unit Swimming Pool Yes W/S/T Tenant Comments: Development density of 18.86 units per acre. Managed by Windsor Communities. Garages are available for $110. believe to be reliable. We do not warrant its accuracy or completeness. 10

Comparable Rental Properties (Continued) Comparable #3 Type Units % Sq Ft High Low Average $/Sq Ft Deposit Mountain Shadows 1+1 60 34.1% 790 $1,797 $1,779 $1,788 $2.26 $400 160 Golf Course Drive 1+1 24 13.6% 932 $1,758 $1,748 $1,753 $1.88 $400 Rohnert Park, CA 94928 2+2 36 20.5% 1,136 $1,991 $1,935 $1,963 $1.73 $500 (707) 766-9500 2+2 48 27.3% 1,240 $2,086 $2,061 $2,074 $1.67 $500 3+2 8 4.5% 1,454 $2,634 $2,634 $2,634 $1.81 $600 Built Sq Ft Vacancy 2002 181,816 6.3% Total/ Avg 176 100.0% 1,033 -- -- $1,935 $1.87 -- Air Conditioning Yes Dishwasher Yes Leasing Center Yes Electricity Tenant Balcony/ Patio Yes Fitness Center Yes Parking Covered Gas Tenant Clubhouse Yes Laundry In Unit Swimming Pool Yes W/S/T Tenant Comments: Development density of 20.25 units per acre. Managed by Sentinel Real Estate. believe to be reliable. We do not warrant its accuracy or completeness. 11

REDWOOD CROSSINGS Multi-family Investments Summary of Comparable Property Transactions Subject Property Comparable #1 Comparable #2 Property Redwood Crossings Saratoga Downs at Sheveland Ranch Basin Street Portfolio Address -- 2075 Funny Cide Street 151 Petaluma Boulevard South City, State, Zip Rohnert Park, CA 94928 Napa, CA 94559 Petaluma, CA 94952 Built -- 2006 2003 & 2006 Units 158 178 99 + Commercial Avg Unit Sq Ft 1,025 1,220 900 Density (Units/Acre) 24.00 20.70 -- Price -- $58,050,00 $32,500,000 Price per Unit -- $326,124 -- Price per Sq Ft -- $267.36 $189.60 Cap Rate -- 4.80% 4.82% COE -- February 2015 June 2014 believe to be reliable. We do not warrant its accuracy or completeness. 12

Map of Comparable Property Transactions Property S. Redwood Crossings Rohnert Park, CA 94928 1. Saratoga Downs at Sheveland Ranch 2075 Funny Cide Street Napa, CA 94559 2. Basin Street Portfolio 151 Petaluma Boulevard South Petaluma, CA 94952 REDWOOD CROSSING believe to be reliable. We do not warrant its accuracy or completeness. 13

Comparable Property Transactions Comparable #1 Saratoga Downs at Sheveland Ranch 2075 Funny Cide Street Napa, CA 94559 Comparable #2 Basin Street Portfolio 151 Petaluma Boulevard South Petaluma, CA 94952 Close of Escrow: February 2015 Close of Escrow: June 2014 Transaction Details Units 178 Price $58,050,000 Cap Rate 4.80% Built 2006 $/Sq Ft $267.36 Sq Ft 217,122 $/Unit $326,124 Transaction Details Units 99 Price $32,500,000 Cap Rate 4.82% Built 2003 & 2006 $/Sq Ft $195.85 Sq Ft 171,418 $/Unit -- Type Units % Sq Ft 1+1 28 15.7% 628 2+2 107 60.2% 973 3+2 33 18.5% 1,359 4+2 10 5.6% 2,250 Total/Avg 178 100.0% 1,220 Comments: Development density of 20.70 units per acre. Purchased by Intercontinental Real Estate Corporation of Boston from Ridge Capital Investors. 83 days on the market and 60 day escrow period. The Buyer was in a 1031 Exchange. Type Units % Sq Ft Studio 36 36.4% 673 1+1 38 38.4% 965 2+2 13 13.1% 1,339 3+2 12 12.1% 1,466 Total/Avg 99 100.0% 900 Comments: 2 mixed-use buildings with 82,310 square feet of ground floor commercial. Purchased by JB Matteson of San Mateo from Basin Street Properties. The Buyer was in a 1031 Exchange. believe to be reliable. We do not warrant its accuracy or completeness. 14