San Francisco Bay Bridge proximity

wood street apartments for sale San Francisco Bay Bridge proximity entitled high density multifamily site ±6.16 acres transit-oriented san francisco/oakland opportunity :: 1401-1599 Wood Street oakland, ca

1401-1599 wood street, oakland, CA Affiliated Business Disclosure and Confidentiality Agreement CBRE, Inc. operates within a global family of companies with many subsidiaries and/or related entities (each an Affiliate ) engaging in a broad range of commercial real estate businesses including, but not limited to, brokerage services, and facilities management, valuation, investment fund management and. At times different Affiliates may represent various clients with competing interests in the same transaction. For example, this Memorandum may be received by our Affiliates, including CBRE Investors, Inc. or Trammell Crow Company. Those, or other, Affiliates may express an interest in the described in this Memorandum (the ) may submit an offer to purchase the and may be the successful bidder for the. You hereby acknowledge that possibility and agree that neither CBRE, Inc. nor any involved Affiliate will have any obligation to disclose to you the involvement of any Affiliate in the sale or purchase of the. In all instances, however, CBRE, Inc. will act in the best interest of the client(s) it represents in the transaction described in this Memorandum and will not act in concert with or otherwise conduct its business in a way that benefits any Affiliate to the detriment of any other offeror or prospective offeror, but rather will conduct its business in a manner consistent with the law and any fiduciary duties owed to the client(s) it represents in the transaction described in this Memorandum. This is a confidential Memorandum intended solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the. This Memorandum contains selected rmation pertaining to the and does not purport to be a representation of the state of affairs of the or the owner of the (the Owner ), to be allinclusive or to contain all or part of the rmation which prospective investors may require to evaluate a purchase of real. All financial projections and rmation are provided for general reference purposes only and are based on assumptions relating to the general economy, market conditions, competition and other factors beyond the control of the Owner and CBRE, Inc. Therefore, all projections, assumptions and other rmation provided and made herein are subject to material variation. All references to acreages, square footages, and other measurements are approximations. Additional rmation and an opportunity to inspect the will be made available to interested and qualified prospective purchasers. In this Memorandum, certain documents, including leases and other materials, are described in summary form. These summaries do not purport to be complete nor necessarily accurate descriptions of the full agreements referenced. Interested parties are expected to review all such summaries and other documents of whatever nature independently and not rely on the contents of this Memorandum in any manner. Neither the Owner or CBRE, Inc, nor any of their respective directors, officers, Affiliates or representatives make any representation or warranty, expressed or implied, as to the accuracy or completeness of this Memorandum or any of its contents, and no legal commitment or obligation shall arise by reason of your receipt of this Memorandum or use of its contents; and you are to rely solely on your investigations and inspections of the in evaluating a possible purchase of the real. The Owner expressly reserved the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the, and/or to terminate discussions with any entity at any time with or without notice which may arise as a result of review of this Memorandum. The Owner shall have no legal commitment or obligation to any entity reviewing this Memorandum or making an offer to purchase the unless and until written agreement(s) for the purchase of the have been fully executed, delivered and approved by the Owner and any conditions to the Owner s obligations therein have been satisfied or waived. By receipt of this Memorandum, you agree that this Memorandum and its contents are of a confident nature, that you will hold and treat it in the strictest confidence and that you will not disclose this Memorandum or any of its contents to any other entity without the prior written authorization of the Owner or CBRE, Inc. You also agree that you will not use this Memorandum or any of its contents in any manner detrimental to the interest of the Owner or CBRE, Inc. If after reviewing this Memorandum, you have no further interest in purchasing the, kindly return this Memorandum to CBRE, Inc. For more rmation, please : Richard thompson First Vice President Lic. 00344320 T 510.874.1973 richard.thompson@cbre.com CBRE, Inc 555 12th St., Suite 900, Oakland, CA 94607 T 510.874.1900 F 510.834.9158

EXECUTIVE SUMMARY San Francisco Wood Street Apartments Final plans are approved for a 301 unit project with a Phase 1 design for 173 units. The site benefits enormously from its proximity to the West Oakland BART station, and convenient near San Francisco enabling this site to compete with many San Francisco properties and rental prices. Offering Address 1401-1599 Wood Street, Oakland, CA 94607 Price To be determined by market Parcel Size (±) 6.16 acres Entitlements Multi-housing for 271-437 units Approved Plan Approved for 301 units with Phase 1 design for 173 units CBRE is pleased to present the opportunity to acquire the fee simple interest in the located at 1401-1599 Wood Street, a 6.16 acre site, located next to the historic 16th Street train station in West Oakland. The project, called the Wood Street Apartments, is a proposed multi-family project entitled for 271-437 units. The project is at the center of the city of Oakland s Wood Street Zoning District. The Wood Street Zoning District is a mixed-use re of the land around the 16th Street Station in West Oakland. Other projects adjacent to the site have already found success, including Pulte s Zephyr Gate 130 unit condominiums (95% sold out), BRIDGE Housing s Ironhorse at Central Station 99 unit affordable rental project (98% occupied), and Holliday Development s Pacific Cannery Lofts 163 unit lofts/townhomes (75% sold out). Investment Highlights Bay Bridge Location: Project site sits near the foot of the Bay Bridge, offering unparalleled commuting access to San Francisco. West Oakland BART: Just one mile away, this is the last station before reaching the famous Embarcadero Station, where several of the city s transit lines connect. West Grand Ave: Last exit before Bay Bridge to San Francisco - immediate access to Interstates 80, 880, and 580. No Affordable Housing or Inclusionary Requirements: is not subject to the City of Oakland Affordable Housing Requirements. Entitlement Period: Approval extended to May 2015 pursuant to AB 208. Centerpiece for Wood Street Zoning District: When complete, the entire group of s will add over 1,000 new residential units, along with civic and commercial buildings, creating a new residential district, in what was previously an under-utilized industrial site. Adjacent to Successful Recent In-fill Projects: In-fill next to already proven successful projects. Pulte s Zephyr Gate project is 95% sold out, and Holliday Development s Pacific Cannery Lofts is 75% sold out, and Ironhorse at Central Station Apartments is 98% occupied. Site is Remediated and NFA Letter: Site is remediated and No further action is required. No Development Fees: Not subject to any or permit fee schedule, and virtually no Mello Roos. San Francisco Bay View: Potential views of the Bay from upper-story units. Wood Street Apartments 3

Location SUMMARY san francisco Oakland Bay Brdige 8.0 miles, 15 mins to SF financial district Emeryville Shopping District 2.3 miles, 6 mins INTERSTATE CALIFORNIA 880 UC Berkeley Campus 6.2 miles, 15 mins Historic 16th St Train Station and planned Future Public Plaza Ironhorse at Central Station Units: 99 Affordable Apartments Pacific Cannery Lofts Units:163 Lofts/Townhomes Wood Street Apartments Entitled for 271-437 units Pulte s Zephyr Gate Units: 130 Townhomes Downtown Oakland 1.6 miles, 7 mins West Oakland BART Station 1.1 mile, 3 mins INTERSTATE CALIFORNIA 980 INTERSTATE CALIFORNIA 880 Wood Street Apartments 4

Project Name: Address: parcel size (±): Proposed : No. units entitled: Wood Street Apartments 1401-1599 Wood Street Ave, Oakland CA 6.16 AC/ 268,330 SF 301 units; two-phases 271-437 units APN: 018-0310-012-01 Status: Zoning: Entitlements: Min Density: Max density: Parking Type: Additional NOtes: Vacant lot and partially graded PUD Entitled for multi-family 44 dwelling units per acre 71 dwelling units per acre To be determined - BMR Requirement: No affordable housing component. - Entitlement Expiration: Approval extended to May 2015 pursuant to AB 208. - Remediation: Site was remediated 2008-2009, and NFA Letter received. - Prevailing Wage: No obligation to utilize prevailing wage as part of the conditions of approval. Wood Street Apartments 5

Wood Street Apartments 6

summary Development summary Ironhorse at Central Station Developer: Bridge Housing Size: 1.5 acres Units: 99 affordable apartment units Built: 2008-2009 Occupancy: 98% Wood Street Zoning District Lot size: 29.2 acres Description: Plan is between 1,200 to 1,500 new homes, condos, townhouses, and apartments will be added including parks, shops, and recreation to create an active, pedestrian oriented urban community that addresses the demand for high quality residential units in the urban neighborhoods. Pacific Cannery Lofts Developer: Holliday Development Size: 2.75 acres Units:163 lofts/townhomes Built: 2005-2007 Occupancy: 75% Sold Zephyr Gate Developer: Pulte Homes Size: 5.5 acres Units: 130 Townhomes Built: 2006-2007 Occupancy: 95% Sold Wood Street Apartments Developer: HFH Apartments Size: 6.16 acres Plan: Entitled for 271-437 units 16th St Train Station Between 1920 and 1941, the 16th Street Station hosted transcontinental trains, regional commuter trains, and local streetcars. Wood Street Apartments 7

summary Development summary Pulte s Zephyr Gate is 95% sold out. Successful Wood Street Development Projects Pulte Homes: Zephyr Gate : The Zephyr Gate project is a for sale condomimium, adjacent to the Wood Street Apartments site, featuring stylish three-story townhomes offering high quality interior and exterior finishes. Prices: Starting from the low $300,000s to $400,000s. Occupancy: 95% Sold out. HOA Fees: $191 Plans unit sf Plans Plan A $329,900 987 SF 2 Bedroom, 2.5 Bathroom Plan B $339,900 1,054 SF 2 Bedroom, 2.5 Bathroom Plan C $419,990 1,556 SF 3 Bedroom, 3.5 Bathroom Pacific Cannery Lofts : Using the former Pacific Cannery building, Bay Area Developer Holliday Development has transformed the building into urban lofts/townhomes that combines the existing Pacific Cannery warehouse with contemporary new construction. Prices: Starting from $229,000 to $400,000s Occupancy Rate: 75% Sold out. Ironhourse at Central Station is 98% occupied. Ironhorse at Central Station : Ironhorse at Central Station, a by BRIDGE Housing Corporation, is an affordable rental housing project that offers 99 one, two, and three-bedroom apartments. Rents: Affordable Occupancy Rate: 98% occupied Wood Street Apartments 8

summary Development summary Illustration: Representative of potential two phase project. Wood Street Apartments 9

16th Street Train Station View from subject looking south at Zephyr Gate and Ironhorse. View going south on Frontage Road. View from subject looking north towards Hwy 880 and train station. Wood Street Apartments 10

market Bay area s rising rents City avg rent % year/year growth San Jose-Sunnyvale-Santa Clara MSA $1,761 13.0% San Francisco-Oakland-Fremont MSA $1,645 7.7% Los Angeles-Long Beach-Santa Ana MSA $1,590 3.2% source: Real facts Bay area leads the nation in rent increases Bay Area apartment rents are on the rise, fueled by economic uncertainty from the tech recovery and the steady flow of foreclosures that is turning former homeowners into renters. For the second quarter of 2011, the San Jose metropolitan statistical area (MSA) had an average rent of $1,761, which represents a 13% year-over-year increase, the highest rental increase among the 43 metro regions surveyed by RealFacts. The second quarter witnessed a strong surge in demand while new supply dropped off, causing overall occupancy rates to climb to nearly 97% by mid 2011. Furthermore, rental growth has been widespread by submarket throughout the Bay Area. San Francisco and Oakland also witnessed notable jumps in occupancy rates and rental rates. The San Francisco-Oakland-Fremont MSA had the second highest growth with an average of rent $1,645 and the third highest in year-over-year growth at 7.7%. source: mpf research INVESTMENT HIGHLIGHTS Bay Area Leads Nation in Rent Growth The San Francisco-Oakland-Fremont Metro area which includes the city of Concord had the second largest rental growth in the nation as rates jumped 7.7% year-over-year increase. Record Occupancy Overall occupancy for the area climbed to nearly 96% for the second quarter of the year. High Demand According to MPF Research, Bay Area demand for rental was strong at 3,790 units, the metro s third-best quarterly performance over the past five years. Limited New Supply With limited new supply coming online, demand for rental housing for all classes has increased. New apartment deliveries in Northern California have fallen to the lowest levels in roughly 13 years. Employment Demand for rental housing surges throughout the Bay Area as demand appears to stem from the creation of jobs that tend to attract young adults, a demographic group that is most likely to choose rental housing. In San Francisco and Oakland, the resurgent in tech-related job growth, and influx of technology startup firms, has bolstered renter demand. Demand will likely to be met with a shortage of quality rental housing, which will result in a market largely benefitting apartment owners. Wood Street Apartments 11

market Rental trends for zipcode 94607 in oakland average asking rents: All classes Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 1 Yr Change studio $1,248 $1,248 $1,248 $1,248 $1,248 $1,232 $1,232 $1,269 $1,275 2.10% 1bd 1bth $1,576 $1,580 $1,510 $1,538 $1,541 $1,549 $1,577 $1,673 $1,709 10.90% 2bd 2bth $1,852 $1,854 $1,731 $1,882 $1,868 $1,885 $1,923 $1,958 $2,067 10.60% 3bd 2bth - - - - - - - $2,345 $2,345 - AVERAGE $1,676 $1,679 $1,590 $1,664 $1,662 $1,674 $1,705 $1,780 $1,844 11.00% source: Realfacts Q2, 2011 Report Rental trends for surrounding apartments market Avg Rent Avg SF Avg $/SF Avg Occ. Avg Year Built Alameda county $1,464 831 $1.76 96.9% 1976 oakland $1,604 845 $1.90 96.9% 1975 berkeley $2,107 662 $3.18 90.8% 2005 san francisco $2,422 803 $3.02 95.9% 1981 source: Realfacts Q2, 2011 Report Wood Street Apartments 12

market Rent ranking for zipcodes in oakland occupancy ranking for zipcodes in oakland City avg rent city avg occ 1. 94607 $1,844 2. 94606 $1,747 3. 94612 $1,573 4. 94605 $1,486 5. 94610 $1,259 6. 94611 $1,199 7. 94609 $846 1. 94609 100.0% 2. 94605 100.0% 3. 94611 97.5% 4. 94612 97.0% 5. 94610 96.9% 6. 94607 96.8% 7. 94606 95.6% rent growth % rankings yr / yr for zipcodes in oakland occupancy growth ranking yr / yr for zipcodes in oakland city avg rent City avg occ 1. 94607 11.5% 2. 94606 6.3% 3. 94610 5.5% 4. 94611 5.4% 5. 94612 4.9% 6. 94609 4.4% 7. 94605 4.9% 1. 94609 3.2% 2. 94606 1.7% 3. 94610 1.3% 4. 94611 0.0% 5. 94605 0.0% 6. 94612-0.4% 7. 94607-1.5% source: Realfacts Wood Street Apartments 13

richard thompson First Vice President Lic. 00344320 T 510.874.1973 richard.thompson@cbre.com CBRE Inc. 555 12th St., Suite 900, Oakland, CA 94607 T 510.874.1900 F 510.834.9158 2012 CBRE, Inc. The rmation contained in this document has been obtained from sources believed reliable. While CBRE, Inc. does not doubt its accuracy, CBRE, Inc. has not verified it and makes no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the. The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the to determine to your satisfaction the suitability of the for your needs.