AVOCADO 7 & ALBERT PLACE

236 Avocado Street & 120 Albert Place Costa Mesa, CA 92627 OFFERING MEMORANDUM

Table of Contents 01 The Asset Property Description Investment Highlights Points of Interest Maps Property Aerial Location Map Property Photos 02 03 04 Valuation Unit Mix Income & Expenses Market Positioning Comparable Rental Properties Comparable Sale Properties Appendix Costa Mesa By The Numbers New Construction Area Demographics The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Kidder Mathews and should not be made available to any other person or entity without the written consent of Kidder Mathews. 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 subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Kidder Mathews 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, current or past tax payments, 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, Kidder Mathews has not verified, and will not verify, any of the information contained herein, nor has Kidder Mathews 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. This information has been secured from sources we believe to be reliable. We make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Recipient of this report must verify the information and bears all risk for any inaccuracies. Exclusively represented by Steven C. Brombal Senior Vice President 949.557.5048 sbrombal@kiddermathews.com Lic No. 00972129 Joshua Y. Rhee Associate Vice President 949.557.5052 jrhee@kiddermathews.com Lic No. 01914094 kiddermathews.com

The Asset PROPERTY DESCRIPTION First time available as a two-property mini portfolio, this offering of 18 units in the coveted Costa Mesa submarket gives any new owner the flexibility to acquire these buildings together for an exchange upleg with the option to exit individually at different times. It is rare to be able to acquire a bulk number of units in Costa Mesa which boasts an excellent mix of primarily two-bedroom unit floorplans as well as seven townhouse-style units. The (7) units on Avocado Street feature all townhouse-style interiors, fireplaces in the one-bedroom, one-bathroom large loft units, private patios and yards, new exterior paint, along with a new carport roof. The (11) units on Albert Place consist of 91% two-bedroom units all featuring balconies or private patios. This property has (6) double-enclosed garages and (8) covered spaces or 20 off-street parking places. median household income is projected to reach $76,508 by 2021 up 8.4% from 2016. The City of Costa Mesa enjoys convenient access to major freeway routes which links it to all of Orange County as well as the greater Los Angeles area and beyond. These freeways include the 55, 405, 22, 91 and Interstate 5 freeways. John Wayne Airport is an important air transportation hub and located just six miles from Costa Mesa. The Newport Mesa Unified School District services all Costa Mesa residents. Based upon comparable rental properties, there is currently a rental lift of approximately 11% attainable awarded to the savvy apartment operator. Costa Mesa s southernmost border is only one mile from the Pacific Ocean and the city is surrounded by Newport Beach, Huntington Beach, Irvine, and Santa Ana. This thriving community is home to upscale shopping at South Coast Plaza which has the highest annual sales volume of any mall in the United States and strong business centers which are factors that continue to draw new residents into the rental pool and the area in general. Orange County is home to five Fortune 500 companies Headquarters in Orange County, including Ingram Micro, Western Digital, Broadcom, Pacific Life, and First American. Costa Mesa s Offering Memorandum Kidder Mathews 3

The Asset INVESTMENT HIGHLIGHTS 236 Avocado Street has an attractive unit mix featuring all townhouse style unit interiors. There are (4) spacious one-bedroom, one-bathroom loft-style units which have large kitchens, a fireplace, vaulted ceilings and large private yards. Additionally, there are (3) approximately 1,200 SF two-bedroom, one and a halfbathroom townhouse units situated in a separate building at the rear of the lot. There is a community laundry room and units are separately metered. Each unit has forced air heat. The exterior has been recently repainted, extensive dry rot wood replacement completed, new front entry doors installed and the carport roof has been replaced. The property has a concrete driveway and parking area. There are 7 covered parking spaces and 5 open spaces. It is a pet friendly building however no rental pet premiums are being charged as many buildings in the area are currently collecting pet rent. With rents escalating significantly over the past number of years, current rents are approximately 12% under market levels in comparison to what is being obtained by other properties in the area. There are (6) double-enclosed garages and (8) covered parking spaces. Some unit interiors have wide vinyl plank wood-style flooring. Central water heaters service hot water. The driveway has a new section of asphalt and is scheduled for a new slurry coating. As rents have escalated dramatically over the past seven years, there is an attainable rental upside of approximately 11%. The Albert Place property has a distinctive overall unit mix with 91% twobedroom units and one very large one-bedroom apartment home. Each unit is separately metered for electricity, features electric cooking, and efficient radiant heat. Each unit also has either a nice private enclosed patio or balcony. There is an attractive painted brick veneer building and garage siding at the entrance to the property and resident BBQ area tucked away privately at the back of the lot. INVESTMENT SUMMARY Price $6,420,000 Price per Unit $356,667 Price per SF $389.82 Current Cap Rate 3.57% Market Cap Rate 4.13% Offering Memorandum Kidder Mathews 4

The Asset 236 AVOCADO STREET PROPERTY SUMMARY Units 7 Parcel No. 419-012-14 Year Built 1987 120 PROPERTY SUMMARY Units 11 Parcel No. 426-054-16 Year Built 1971 Metering Individual gas and electric; Master water Metering Individual gas and electric; Master water Parking 7 covered, 5 open Parking 6 double garages, 8 covered Total NRSF 6,543 SF Total NRSF 9,935 SF Average Unit Size 933 SF Average Unit Size 903 SF Lot Size 15,245 SF Lot Size 16,386 SF Type of Building Frame and stucco Type of Building Frame and stucco HVAC Forced air heat HVAC Radient Hot Water Individual Hot Water Central boiler, solar heaters Roof Pitched composition; Carport structure is flat Roof Pitched composition; Garage structure is flat Exterior Two-story, garden style Exterior Two-story, garden style Offering Memorandum Kidder Mathews 5

The Asset POINTS OF INTEREST NEWPORT HARBOR NEWPORT BEACH E 17th St W 17th St E 19th St W 19th St THE TRIANGLE Orange Ave Newport Blvd N Newport Blvd S Harbor Blvd Victoria St ALBERT PLACE AVOCADO 7 Avocado St Albert Pl Offering Memorandum Kidder Mathews 6

236 AVOCADO STREET AERIAL 236 AVOCADO STREET Avalon Street Avocado Street Offering Memorandum Kidder Mathews 7

120 AERIAL Newport Blvd S 23rd Street Newport Blvd N 120 ALBERT PLACE Albert Place Elden Avenue Cecil Place Offering Memorandum Kidder Mathews 8

The Asset Ellis Ave Sunflower Ave Garfield Ave 405 Yorktown Ave Baker St Red Hills Ave Main St Adams Ave Campus Dr Indianapolis Ave COSTA MESA Mesa Dr Atlanta Ave 236 AVOCADO STREET University Dr Hamilton Ave 120 Pomona Ave Tustin Ave Irvine Ave Jamboree Rd E 15 th St PACIFIC OCEAN NEWPORT BEACH Offering Memorandum Kidder Mathews 9

The Asset AVOCADO 7 INTERIOR PHOTOS Offering Memorandum Kidder Mathews 10

The Asset AVOCADO 7 EXTERIOR PHOTOS Offering Memorandum Kidder Mathews 11

The Asset INTERIOR PHOTOS Offering Memorandum Kidder Mathews 12

The Asset EXTERIOR PHOTOS Offering Memorandum Kidder Mathews 13

Valuation FINANCIAL ANALYSIS Unit Mix UNITS TYPE UNIT SF TOTAL CURRENT RENT Average MARKET RENT CURRENT RENT/SF 1 1 Bed / 1 Bath 725 725 $1,475 $1,650 $2.03 $2.28 4 1 Bed / 1 Bath Loft AVOCADO 7 750 3,000 $1,529 $1,650 $2.04 $2.20 10 2 Bed / 1 Bath 921 9,210 $1,714 $1,925 $1.86 $2.09 3 2 Bed / 1.5 Bath AVOCADO 7 1,178 3,534 $1,833 $1,975 $1.56 $1.68 18 915 16,469 $1,679 $1,857 $1.84 $2.03 MARKET RENT/SF Offering Memorandum Kidder Mathews 14

Valuation Income & Expenses INCOME CURRENT PRO FORMA MARKET PRO FORMA Scheduled Market Rent $362,760 $401,100 Less: Vacancy (4.00%) ($14,510) ($16,044) Net Rental Income $348,250 $385,056 Plus: Fee & Laundry Income $2,442 $2,442 Total Operating Income (EGI) $350,692 $387,498 EXPENSES PER UNIT CURRENT PRO FORMA MARKET PRO FORMA Administrative $56 $1,000 $1,000 Repairs & Maintenance / Turnover $913 $16,430 $17,100 Utilities $739 $13,300 $13,300 Contracted Services $519 $9,337 $9,337 Real Estate Taxes $3,744 $67,384 $67,384 Special Assessments $288 $5,176 $5,176 Insurance $293 $5,268 $5,268 Replacement Reserve $200 $3,600 $3,600 Total Expenses $121,495 $122,165 Per Unit $6,750 $6,787 Per SF $7.38 $7.42 Net Operating Income $229,196 $265,333 Investment Summary Price $6,420,000 Price per Unit $356,667 Price per SF $389.82 Current Cap Rate 3.57% Market Cap Rate 4.13% Offering Memorandum Kidder Mathews 15

Market Positioning RENT COMPARABLES 1 AVA NEWPORT 2 BAYWIND APARTMENTS 1765 SANTA ANA AVENUE, COSTA MESA, CA 151 155 E 21ST STREET, COSTA MESA, CA Number of Units 145 Number of Units 30 Year Built 1963 Year Built 1970 UNITS TYPE SF ASKING RENT RENT/SF 12 Studio 320 $1,875 $5.86 44 1 Bed / 1 Bath 675 $2,100 $3.11 6 2 Bed / 1 Bath 650 $2,175 $3.35 18 2 Bed / 1 Bath 800 $2,245 $2.81 18 2 Bed / 1 Bath 875 $2,265 $2.59 UNITS TYPE SF ASKING RENT RENT/SF 8 1 Bed / 1 Bath 746 $1,759 $2.36 16 2 Bed / 1 Bath 875 $2,060 $2.35 4 2 Bed / 2 Bath 957 $2,170 $2.27 2 3 Bed / 2 Bath 1,170 $2,575 $2.20 30 Weighted Average 871 $2,029 $2.33 12 2 Bed / 1.5 Bath 1,075 $2,500 $2.33 18 3 Bed / 2 Bath 1,150 $2,900 $2.52 17 3 Bed / 2 Bath 1,200 $3,025 $2.52 145 Weighted Average 839 $2,364 $2.82 4 EASTSIDE APARTMENTS 131 E 18TH STREET, COSTA MESA, CA Number of Units 24 3 EASTSIDE APARTMENTS 126 E 18TH STREET, COSTA MESA, CA Number of Units 30 Year Built 1975 Year Built 1973 UNITS TYPE SF ASKING RENT RENT/SF 20 1 Bed / 1 Bath 706 $1,910 $2.71 4 2 Bed / 1 Bath 896 $2,200 $2.46 24 Weighted Average 738 $1,958 $2.65 UNITS TYPE SF ASKING RENT RENT/SF 12 Studio 472 $1,630 $3.45 6 1 Bed / 1 Bath 702 $1,910 $2.72 12 2 Bed / 1 Bath 943 $2,200 $2.33 30 Weighted Average 706 $1,914 $2.71 Offering Memorandum Kidder Mathews 16

Market Positioning RENT COMPARABLES 5 HAMILTON 6 MADISON NEWPORT 780-790 HAMILTON STREET, COSTA MESA, CA 2345 NEWPORT BOULEVARD, COSTA MESA, CA Number of Units 40 Number of Units 136 Year Built 1965 Year Built 1992 UNITS TYPE SF ASKING RENT RENT/SF 8 Studio 370 $1,375 $3.72 28 1 Bed / 1 Bath 645 $1,625 $2.52 4 2 Bed / 1 Bath 900 $1,900 $2.11 40 Weighted Average 616 $1,603 $2.60 UNITS TYPE SF ASKING RENT RENT/SF 54 1 Bed / 1 Bath 660 $1,795 $2.72 72 2 Bed / 2 Bath 880 $2,240 $2.55 10 3 Bed / 2 Bath 1,160 $2,965 $2.56 136 Weighted Average 813 $2,117 $2.60 7 THE COURTYARDS 8 THE PARSONS 324 E 20TH STREET, COSTA MESA, CA 2000 PARSONS STREET, COSTA MESA, CA Number of Units 28 Number of Units 60 Year Built 1970 Year Built 1968 UNITS TYPE SF ASKING RENT RENT/SF 6 1 Bed / 1 Bath 650 $1,795 $2.76 10 2 Bed / 1 Bath 900 $1,995 $2.22 4 2 Bed / 1.5 Bath 1,100 $2,275 $2.07 8 2 Bed / 2 Bath 950 $2,150 $2.26 28 Weighted Average 889 $2,036 $2.29 UNITS TYPE SF ASKING RENT RENT/SF 14 Studio 460 $1,690 $3.67 26 1 Bed / 1 Bath 735 $1,925 $2.62 20 2 Bed / 2 Bath 865 $2,180 $2.52 60 Weighted Average 714 $1,955 $2.74 Offering Memorandum Kidder Mathews 17

Market Positioning RENT COMPARABLES (CONTINUED) 9 LA COSTA 354 AVOCADO STREET, COSTA MESA, CA Number of Units 24 Year Built 1968 Subject AVOCADO 7 & 236 AVOCADO STREET & 120 COSTA MESA, CA Number of Units 18 Year Built 1971 & 1987 UNITS TYPE SF CURRENT RENT RENT/SF 8 1 Bed / 1 Bath 602 $1,580 $2.62 16 2 Bed / 1 Bath 925 $1,860 $2.01 24 Weighted Average 817 $1,767 $2.16 UNITS TYPE SF CURRENT RENT RENT/SF 1 1 Bed / 1 Bath (ALBERT PL) 725 $1,475 $2.03 4 1 Bed / 1 Bath Loft (AVOCADO 7) 750 $1,529 $2.04 10 2 Bed / 1 Bath (ALBERT PL) 921 $1,714 $1.86 3 2 Bed / 1.5 Bath TH (AVOCADO 7) 1,178 $1,833 $1.56 18 Weighted Average 915 $1,679 $1.84 Offering Memorandum Kidder Mathews 18

Cam AVOCADO 7 & Market Positioning RENT COMPARABLES (CONTINUED) STUDIO UNITS BREAKDOWN PROPERTY CURRENT RENT 5 780 Hamilton Street $1,375 3 126 East 18th Street $1,630 Baker St Red Hills Ave 405 8 2000 Parsons Street $1,710 1 1765 Santa Ana Avenue $1,875 $2,000 COSTA MESA Mesa Dr $1,500 $1,000 $500 $0 AVERAGE $1,673 5 3 8 1 236 AVOCADO STREET 9 Hamilton Ave 5 Pomona Ave 8 3 4 1 6 S S 2 7 Tustin Ave Irvine Ave 120 Jamboree Rd E 15 th St NEWPORT BEACH Offering Memorandum Kidder Mathews 19

Market Positioning RENT COMPARABLES (CONTINUED) $2,500 $2,000 $1,500 AVERAGE $1,867 $2,500 $2,000 $1,500 AVERAGE $2,186 $1,000 $1,000 $500 $500 $0 S 9 5 2 6 7 3 4 8 1 $0 S 9 5 2 7 8 3 4 6 1 ONE-BEDROOM UNITS BREAKDOWN TWO-BEDROOM UNITS BREAKDOWN PROPERTY CURRENT RENT PROPERTY CURRENT RENT Subject Property $1,502 9 354 Avocado Street $1,580 5 780 Hamilton Street $1,625 2 151 East 21st Street $1,759 6 2345 Newport Boulevard $1,795 7 324 East 20th Street $1,795 3 126 East 18th Street $1,910 4 131 East 18th Street $1,910 8 2000 Parsons Street $1,975 1 1765 Santa Ana Avenue $2,100 Subject Property $1,774 9 354 Avocado Street $1,860 5 780 Hamilton Street $1,900 2 151 East 21st Street $2,082 7 324 East 20th Street $2,102 8 2000 Parsons Street $2,185 3 126 East 18th Street $2,200 4 131 East 18th Street $2,200 6 2345 Newport Boulevard $2,240 1 1765 Santa Ana Avenue $2,301 Offering Memorandum Kidder Mathews 20

Market Positioning SALE COMPARABLES 1 2470 SANTA ANA AVENE, COSTA MESA Property Information Sales Data Units Built Rentable SF Price Price/Unit Price/SF Cap Rate Sale Date 6 1977 6,640 $2,450,000 $408,333 $368.98 3.00% 9/17 2 3 THE COURTYARDS, 324 EAST 20TH STREET, COSTA MESA Property Information Sales Data Units Built Rentable SF Price Price/Unit Price/SF Cap Rate Sale Date 28 1970 24,900 $10,250,000 $366,071 $411.65 2.80% 5/17 *Listed and Sold by Steven Brombal and Joshua Rhee 1933 WALLACE AVENUE, COSTA MESA Property Information Sales Data Units Built Rentable SF Price Price/Unit Price/SF Cap Rate Sale Date 9 1957 5,424 $2,375,000 $263,889 $437.87 3.40% 5/17 4 862 & 868 CENTER STREET, COSTA MESA Property Information Sales Data Units Built Rentable SF Price Price/Unit Price/SF Cap Rate Sale Date 8 1963 8,400 $2,920,000 $365,000 $347.62 3.60% 3/17 5 PAULARINO TOWNOMES, 811 PAULARINO AVENUE, COSTA MESA Property Information Sales Data Units Built Rentable SF Price Price/Unit Price/SF Cap Rate Sale Date 14 1964 12,432 $4,600,000 $328,571 $370.01 3.10% 2/17 6 321 AVOCADO STREET, COSTA MESA Property Information Sales Data Units Built Rentable SF Price Price/Unit Price/SF Cap Rate Sale Date 18 1990 21,996 $8,125,000 $451,389 $369.39 3.68% 1/17 Offering Memorandum Kidder Mathews 21

Market Positioning SALE COMPARABLES CONTINUED 7 369 WEST BAY STREET, COSTA MESA Property Information Sales Data Units Built Rentable SF Price Price/Unit Price/SF Cap Rate Sale Date 9 1976 6,639 $2,760,000 $306,667 $415.73 3.53% 11/16 8 9 EASTSIDE COTTAGES, 2550 SANTA ANA AVENUE, COSTA MESA Property Information Sales Data Units Built Rentable SF Price Price/Unit Price/SF Cap Rate Sale Date 7 1967 6,300 $2,547,000 $363,857 $404.29 3.40% 11/16 *Listed and Sold by Steven Brombal and Joshua Rhee 1775 ORANGE AVENUE, COSTA MESA Property Information Sales Data Units Built Rentable SF Price Price/Unit Price/SF Cap Rate Sale Date 7 1960 4,586 $2,550,000 $364,286 $556.04 3.37% 11/16 10 2014 WALLACE AVENUE, COSTA MESA Property Information Sales Data Units Built Rentable SF Price Price/Unit Price/SF Cap Rate Sale Date 5 1963 5,309 $1,925,000 $385,000 $362.59 3.79% On Market Averages $364,883 $394.66 3.37% S S AVOCADO 7, 236 AVOCADO STREET, COSTA MESA Property Information Sales Data Units Built Rentable SF Price Price/Unit Price/SF Cap Rate Sale Date 7 1987 6,534 $2,445,000 $349,286 $374.20 3.64% 9/17, 120, COSTA MESA Property Information Sales Data Units Built Rentable SF Price Price/Unit Price/SF Cap Rate Sale Date 11 1971 9,935 $3,975,000 $361,364 $400.10 3.47% 9/17 Offering Memorandum Kidder Mathews 22

Market Positioning SALE COMPARABLES CONTINUED Garfield Ave Yorktown Ave Baker St 5 Red Hills Ave Main St 405 Adams Ave Campus Dr Indianapolis Ave COSTA MESA Mesa Dr Atlanta Ave 236 AVOCADO STREET Hamilton Ave 6 S S 8 1 University Dr 4 10 3 Pomona Ave 7 9 2 Tustin Ave 120 Irvine Ave Jamboree Rd E 15 th St PACIFIC OCEAN NEWPORT BEACH Offering Memorandum Kidder Mathews 23

Market Positioning SALE COMPARABLES CONTINUED PRICE / UNIT $500,000 PRICE/UNIT PRICE / SF Property Price/Unit 3 1933 Wallace Avenue $263,889 $400,000 AVERAGE $364,883 Property Price/SF 4 862 Center Street $347.62 7 369 West Bay Street $306,667 $300,000 10 2014 Wallace Avenue $362.59 5 811 Paularino Avenue $328,571 S Avocado 7 & Albert Place $356,667 $200,000 1 2470 Santa Ana Avene $368.98 6 321 Avocado Street $369.39 8 2550 Santa Ana Avenue $363,857 $100,000 5 811 Paularino Avenue $370.01 9 1775 Orange Avenue $364,286 4 862 Center Street $365,000 $0 3 7 5 S 8 9 4 2 10 1 6 S Avocado 7 & Albert Place $389.82 8 2550 Santa Ana Avenue $404.29 2 324 East 20th Street $366,071 10 2014 Wallace Avenue $385,000 $600 PRICE/SF 2 324 East 20Th Street $411.65 7 369 West Bay Street $415.73 1 2470 Santa Ana Avenue $408,333 $500 3 1933 Wallace Avenue $437.87 6 321 Avocado Street $451,389 $400 AVERAGE $394.66 9 1775 Orange Avenue $556.04 $300 $200 $100 $0 4 10 1 6 5 S 8 2 7 3 9 Offering Memorandum Kidder Mathews 24

Market Positioning SALE COMPARABLES CONTINUED CAP RATE Property Cap Rate 4.0% CAP RATE 2 324 East 20th Street 2.80% 1 2470 Santa Ana Avenue 3.00% 5 811 Paularino Avenue 3.10% 3.5% 3.0% 2.5% AVERAGE 3.37% 9 1775 Orange Avenue 3.37% 2.0% 3 1933 Wallace Avenue 3.40% 8 2550 Santa Ana Avenue 3.40% 7 369 West Bay Street 3.53% S Avocado 7 & Albert Place 3.57% 1.5% 1.0% 0.5% 4 862 Center Street 3.60% 0.0% 2 1 5 9 3 8 7 S 4 6 10 6 321 Avocado Street 3.68% 10 2014 Wallace Avenue 3.79% Offering Memorandum Kidder Mathews 25

Appendix MEDIAN HOUSEHOLD INCOME COSTA MESA* $90,000 $70,000 $50,000 *Projections Costa Mesa By the Numbers CURRENT 2022 PROJECTION GROWTH RATE Total Population 118,474 123,882 4.56% Total Housing Units 42,406 44,176 4.17% $30,000 $10,000 $50,732 $65,830 $69,980 $79,962 2000 2010 2017 2022* Median Income $69,980 $79,962 14.25% Median Age 34.6 35.1 POPULATION TREND COSTA MESA 140,000 120,000 100,000 *Projections AVG MORTGAGE PAYMENT** AVG RENT DIFFERENCE Rent vs. Own $3,057 $1,913 $1,144 **$825,000 (Median Home Price) 30 year fixed; 20% down; 3.75% interest (taxes/ins. not included) Source: Zillow 80,000 ASKING RENT & OCCUPANCY COSTA MESA 60,000 40,000 109,396 109,869 118,474 123,882 2000 2010 2017 2022* $2,000 $1,800 100% 98% ANNUAL UNEMPLOYMENT RATES COSTA MESA $1,600 96% 10.0% $1,400 94% 8.0% 6.0% 4.0% 8.6% 7.1% 6.1% 4.9% 4.5% 4.3% $1,200 $1,000 $1,458 $1,516 $1,626 $1,688 $1,795 $1,889 $1,913 2011 2012 2013 2014 2015 2016 YTD Average Asking Rent Occupancy 92% 90% 2.0% 2012 2013 2014 2015 2016 YTD Offering Memorandum Kidder Mathews 26

Appendix Orange County Construction & Development 1 WESTSIDE GATEWAY 671 W 17TH STREET, COSTA MESA, CA TYPE UNITS % 176 100% Building Type Status Apartments Condo Under Construction Units 176 GBA Rent Type Market Segment 264,000 SF Market All 2 580 ANTON BOULEVARD 580 ANTON BOULEVARD, COSTA MESA, CA TYPE UNITS % 1 Bed / 1 Bath 250 100% Building Type Status Mid-Rise Apartment Under Construction Units 250 GBA Rent Type Market Segment 200,000 SF Market All Offering Memorandum Kidder Mathews 27

Appendix Orange County Construction & Development Continued 3 BAKER BLOCK 125 BAKER STREET E, COSTA MESA, CA Building Type Mid-Rise Apartment Status Under Construction Units 240 TYPE UNITS % Studio 78 12.6% 1 Bed / 1 Bath 77 5.4% 2 Bed 77 35.7% 3 Bed 8 10.7% GBA Metering 200,000 SF Individual Offering Memorandum Kidder Mathews 28

Appendix AREA DEMOGRAPHICS Median Household Income 5 MILES $75,000 or more $60,000 to $75,000 $45,000 to $60,000 3 MILES $30,000 to $45,000 Less than $30,000 405 1 MILE SUBJECT PROPERTIES PACIFIC OCEAN Offering Memorandum Kidder Mathews 29

Appendix AREA DEMOGRAPHICS PROFILE 1-Mile Radius Summary Census 2010 2017 2022 Population 30,515 32,806 34,316 Households 11,904 12,587 13,102 Families 6,489 6,876 7,162 Average Household Size 2.46 2.49 2.51 Owner Occupied Housing Units 4,759 4,830 5,006 Renter Occupied Housing Units 7,145 7,757 8,096 Median Age 34.8 36.4 36.9 Trends: 2017-2022 Annual Rate Area State National Population 0.90% 0.84% 0.83% Households 0.81% 0.77% 0.79% Families 0.82% 0.77% 0.71% Owner HHs 0.72% 0.67% 0.72% Median Household Income 2.81% 2.66% 2.12% 2017 2022 Households by Income Number Percent Number Percent <$15,000 837 6.6% 844 6.4% $15,000 - $24,999 1,123 8.9% 1,082 8.3% $25,000 - $34,999 896 7.1% 819 6.3% $35,000 - $49,999 1,319 10.5% 1,129 8.6% $50,000 - $74,999 2,718 21.6% 2,425 18.5% $75,000 - $99,999 1,683 13.4% 1,817 13.9% $100,000 - $149,999 1,782 14.2% 2,132 16.3% $150,000 - $199,999 936 7.4% 1,192 9.1% $200,000+ 1,294 10.3% 1,661 12.7% Median Household Income $67,597 $77,662 Average Household Income $99,374 $115,680 Per Capita Income $40,101 $46,064 Offering Memorandum Kidder Mathews 30

Appendix AREA DEMOGRAPHICS PROFILE 1-Mile Radius Census 2010 2017 2022 Population by Age Number Percent Number Percent Number Percent 0-4 1,815 5.9% 1,777 5.4% 1,869 5.4% 5-9 1,621 5.3% 1,711 5.2% 1,671 4.9% 10-14 1,551 5.1% 1,648 5.0% 1,612 4.7% 15-19 2,026 6.6% 2,001 6.1% 1,884 5.5% 20-24 2,638 8.6% 2,801 8.5% 2,630 7.7% 25-34 5,741 18.8% 5,750 17.5% 6,451 18.8% 35-44 4,908 16.1% 5,026 15.3% 5,175 15.1% 45-54 4,333 14.2% 4,506 13.7% 4,444 12.9% 55-64 3,137 10.3% 3,817 11.6% 4,005 11.7% 65-74 1,417 4.6% 2,248 6.9% 2,749 8.0% 75-84 875 2.9% 979 3.0% 1,269 3.7% 85+ 454 1.5% 543 1.7% 558 1.6% Census 2010 2017 2022 Race and Ethnicity Number Percent Number Percent Number Percent White Alone 23,223 76.1% 23,947 73.0% 24,349 71.0% Black Alone 360 1.2% 444 1.4% 500 1.5% American Indian Alone 200 0.7% 217 0.7% 221 0.6% Asian Alone 1,533 5.0% 1,960 6.0% 2,325 6.8% Pacific Islander Alone 138 0.5% 165 0.5% 181 0.5% Some Other Race Alone 3,697 12.1% 4,399 13.4% 4,850 14.1% Two or More Races 1,363 4.5% 1,673 5.1% 1,891 5.5% Hispanic Origin (Any Race) 8,916 29.2% 10,567 32.2% 11,747 34.2% Data Note: Income is expressed in current dollars. Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2017 and 2022. October 19, 2017 Offering Memorandum Kidder Mathews 31

Appendix AREA DEMOGRAPHICS PROFILE 3-Mile Radius Summary Census 2010 2017 2022 Population 156,183 167,302 174,573 Households 61,044 64,354 66,780 Families 34,562 36,463 37,839 Average Household Size 2.50 2.54 2.56 Owner Occupied Housing Units 27,520 28,047 28,828 Renter Occupied Housing Units 33,524 36,307 37,952 Median Age 36.1 37.1 37.7 Trends: 2017-2022 Annual Rate Area State National Population 0.85% 0.84% 0.83% Households 0.74% 0.77% 0.79% Families 0.74% 0.77% 0.71% Owner HHs 0.55% 0.67% 0.72% Median Household Income 2.54% 2.66% 2.12% 2017 2022 Households by Income Number Percent Number Percent <$15,000 4,807 7.5% 4,760 7.1% $15,000 - $24,999 4,553 7.1% 4,275 6.4% $25,000 - $34,999 4,346 6.8% 3,907 5.9% $35,000 - $49,999 6,599 10.3% 5,580 8.4% $50,000 - $74,999 10,260 15.9% 9,204 13.8% $75,000 - $99,999 8,264 12.8% 8,836 13.2% $100,000 - $149,999 10,388 16.1% 12,148 18.2% $150,000 - $199,999 5,634 8.8% 6,838 10.2% $200,000+ 9,501 14.8% 11,232 16.8% Median Household Income $78,854 $89,409 Average Household Income $118,866 $135,116 Per Capita Income $46,451 $52,357 Offering Memorandum Kidder Mathews 32

Appendix AREA DEMOGRAPHICS PROFILE 3-Mile Radius Census 2010 2017 2022 Population by Age Number Percent Number Percent Number Percent 0-4 8,867 5.7% 8,769 5.2% 9,283 5.3% 5-9 8,606 5.5% 8,849 5.3% 8,705 5.0% 10-14 8,625 5.5% 8,983 5.4% 8,750 5.0% 15-19 9,673 6.2% 9,298 5.6% 8,876 5.1% 20-24 12,648 8.1% 13,047 7.8% 12,221 7.0% 25-34 27,072 17.3% 29,429 17.6% 32,140 18.4% 35-44 22,890 14.7% 23,206 13.9% 25,209 14.4% 45-54 22,266 14.3% 22,058 13.2% 21,294 12.2% 55-64 16,366 10.5% 19,706 11.8% 20,596 11.8% 65-74 9,784 6.3% 13,180 7.9% 15,218 8.7% 75-84 6,445 4.1% 7,158 4.3% 8,449 4.8% 85+ 2,940 1.9% 3,618 2.2% 3,833 2.2% Census 2010 2017 2022 Race and Ethnicity Number Percent Number Percent Number Percent White Alone 116,215 74.4% 119,269 71.3% 120,908 69.3% Black Alone 1,973 1.3% 2,437 1.5% 2,732 1.6% American Indian Alone 825 0.5% 893 0.5% 913 0.5% Asian Alone 11,158 7.1% 14,191 8.5% 16,736 9.6% Pacific Islander Alone 611 0.4% 710 0.4% 759 0.4% Some Other Race Alone 18,953 12.1% 21,986 13.1% 23,780 13.6% Two or More Races 6,449 4.1% 7,815 4.7% 8,745 5.0% Hispanic Origin (Any Race) 43,453 27.8% 50,497 30.2% 55,341 31.7% Data Note: Income is expressed in current dollars. Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2017 and 2022. October 19, 2017 Offering Memorandum Kidder Mathews 33

Appendix AREA DEMOGRAPHICS PROFILE 5-Mile Radius Summary Census 2010 2017 2022 Population 379,521 405,684 423,151 Households 140,779 148,221 153,874 Families 84,177 88,523 91,823 Average Household Size 2.63 2.66 2.68 Owner Occupied Housing Units 71,823 73,269 75,333 Renter Occupied Housing Units 68,956 74,952 78,541 Median Age 35.7 36.7 37.6 Trends: 2017-2022 Annual Rate Area State National Population 0.85% 0.84% 0.83% Households 0.75% 0.77% 0.79% Families 0.73% 0.77% 0.71% Owner HHs 0.56% 0.67% 0.72% Median Household Income 2.48% 2.66% 2.12% 2017 2022 Households by Income Number Percent Number Percent <$15,000 11,743 7.9% 11,725 7.6% $15,000 - $24,999 9,627 6.5% 9,122 5.9% $25,000 - $34,999 9,400 6.3% 8,527 5.5% $35,000 - $49,999 13,996 9.4% 11,945 7.8% $50,000 - $74,999 23,031 15.5% 20,492 13.3% $75,000 - $99,999 18,924 12.8% 20,038 13.0% $100,000 - $149,999 25,399 17.1% 29,261 19.0% $150,000 - $199,999 14,270 9.6% 17,135 11.1% $200,000+ 21,828 14.7% 25,626 16.7% Median Household Income $81,870 $92,557 Average Household Income $119,890 $135,501 Per Capita Income $44,556 $49,999 Offering Memorandum Kidder Mathews 34

Appendix AREA DEMOGRAPHICS PROFILE 5-Mile Radius Census 2010 2017 2022 Population by Age Number Percent Number Percent Number Percent 0-4 20,267 5.3% 20,121 5.0% 21,097 5.0% 5-9 20,365 5.4% 20,587 5.1% 20,110 4.8% 10-14 21,429 5.6% 21,503 5.3% 21,075 5.0% 15-19 28,825 7.6% 27,406 6.8% 26,572 6.3% 20-24 33,977 9.0% 35,044 8.6% 32,730 7.7% 25-34 61,275 16.1% 68,834 17.0% 73,541 17.4% 35-44 52,858 13.9% 52,474 12.9% 58,228 13.8% 45-54 52,587 13.9% 51,683 12.7% 49,869 11.8% 55-64 40,490 10.7% 47,523 11.7% 49,745 11.8% 65-74 25,531 6.7% 33,850 8.3% 38,586 9.1% 75-84 15,024 4.0% 18,037 4.4% 22,139 5.2% 85+ 6,893 1.8% 8,620 2.1% 9,459 2.2% Census 2010 2017 2022 Race and Ethnicity Number Percent Number Percent Number Percent White Alone 256,573 67.6% 260,398 64.2% 261,984 61.9% Black Alone 5,009 1.3% 6,015 1.5% 6,642 1.6% American Indian Alone 1,916 0.5% 2,028 0.5% 2,058 0.5% Asian Alone 53,935 14.2% 65,959 16.3% 75,671 17.9% Pacific Islander Alone 1,234 0.3% 1,413 0.3% 1,506 0.4% Some Other Race Alone 44,823 11.8% 50,749 12.5% 54,142 12.8% Two or More Races 16,032 4.2% 19,122 4.7% 21,149 5.0% Hispanic Origin (Any Race) 103,621 27.3% 117,324 28.9% 126,730 29.9% Data Note: Income is expressed in current dollars. Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2017 and 2022. October 19, 2017 Offering Memorandum Kidder Mathews 35

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