JM PROPERTIES, INC

FOR SALE:THE REAL GARDENS20 UNITS WITH HAP CONTRACT

2701 S Rea l Road | Bakers f ie ld , CA 93309

Asking Pr ice : $2,100,000

INVESTMENT HIGHLIGHTS

• 100% HAP project base multi-housing

• Stable and predictable income and cash flow

backed by the full faith and credit of the United

States Government - HUD

• Well Maintained with many recent upgrades

• 90+ recent REAC scores

• Excellent unit mix: 5-3 bed 1.5 bath and 15-2 bed 1 bath

• Great location on a tree-lined street

• Approximately 4.5 miles from Bakersfield City Hall

• 6%+ Cap rate at the current numbers

• Turn Key operation

INVESTMENT HIGHLIGHTS

• 100% HAP project base multi-housing

• Stable and predictable income and cash flow backed by the full faith and credit of the United States Government

• Well Maintained with many recent upgrades

• 90+ recent REAC scores

• Excellent unit mix: 5-3 bed 1.5 bath and 15-2 bed 1 bath

• Great location on a tree-lined nice street

• Approximately 4.5 miles from Bakersfield city hall

• In an approximately 60 days rental income shall increase an additional 4%+ straight across

• Turn Key operation

2701 S Real Road | Bakersfield, CA 93309

JM PROPERTIES, INC

ABU MAJUMDER Lic. 01275191Direct: (562) 201-7577Office: (310) 856-1121 Main: (310) 767-5600E-mail: AM@CBCJM.COM

FOR SALE: THE REAL GARDENS20 UNITS WITH HAP CONTRACT

Asking Price: BEST OFFER

FOR MORE INFO, CONTACT:

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to theaccuracy of the information. All sales, profits, age of the building, square footage and other related information are approximate. Buyer must verifythe information and bears all risk for any inaccuracies.

This great offering appeal to investors looking for a excellent desirable location, well maintained asset, turned key operation, Government guaranteed rents, and minutes from freeway access. Stable tenancy and excellent collection record made this property a very profitable and attractive investment property in this limited inventory market. Motivated seller! An unequivocally great property for a long-term investor! Lets’ move forward without hesitation!

NOTE: 24 UNITS IN WASCO AND THIS 20 UNITS IN BAKERSFIELD owned by the same owner and can be purchased as a package!

Year Built: 1983

Building Square Feet: 20,215

Lot Size: 43,560

Parking: 44 Open, 2 handicaps

Zoning: R-2

Assessor Parcel number: 441-190-21-00

PROPERTY DESCRIPTION: The property is at 2701 S Real Rd. a multi-family home in Bakersfield, CA 93309. It is surrounded by well-kept single family and multi-housing communities. This 20 unit, 20,215-square foot multi-family home sits on a 1 acre lot. This property was built in 1983. Unit mixes are: 5-three (3) bedrooms 1.5 bath, and 15-two (2) bedrooms and 1 bath. Every unit has washer and dryer hookups. All units are Town House style. All units are separately metered for gas and electric. There are three separate buildings with lots of open spaces with greeneries. There is an on-site laundry facility and nice storage room for repair-maintenance equipment’s and supplies. Tenants parking is on site open and there are approximately 44 regular and 2 handicap spaces.

This great offering appeals to investors looking for an excellent location, well maintained asset, turned key operation, Government - HUD guaranteed rents, and minutes from freeway access. Stable tenancy and excellent collection record makes this property a profitable long term investment property in this limited inventory market. Motivated seller!

NOTE: This 20 UNiT PROPERTY iN BAKERSfiElD AND A 24 UNiT PROPERTY iN WASCO are owned by the same owner, and can be purchased as a package!

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to theaccuracy of the information. All sales, profits, age of the building, square footage and other related information are approximate. Buyer must verify

the information and bears all risk for any inaccuracies.

ABU MAJUMDERLic. 01275191Direct: 562-201-7577Office: 310-856-1121Main: 310-767-5600E-mail: am@cbcjm.com

OFFERING SUMMARY

Number of Units 20Cost Per Unit $105,000 Cost Per Square-Net (Building) $103.88 Gross income Multiple-Actual 9.56Gross income Multiple-Pro-forma 9.28Cap Rate-Actual 6.02%Cap Rate-Pro-forma 6.32%Year Built 1983Building Square feet 20,215lot Size 43,560

Parking44 Open, 2 Handicaps

Zoning R-2Assessor Parcel Number/s: 441-190-21-00

With property tax abatement, which can be done by bringing in a non-profit,

the cap rate can be increased to 9.5%+

JM PROPERTIES, INC

THE OPPORTUNITY: A 20 units, the Real Garden Apartments offering affords an investor a stable and predictable income and cash flow backed by the full faith and credit of the United States government. The property is encumbered by a 30-year use agreement for Multi-family Projects Participating in the Mark-to-Market Program under the Multi-family Assisted Housing Reform and Affordability Act (MAHRA) of 1997. The property is also encumbered by a 20-year, Project-based Section 8 Housing Assistance Payment (HAP) Contract from the U.S. Department of Housing and Urban Development. This contract, Section 8 Project is administered by the LA Multifamily HUD hub and affects all 20 units. The property’s FMR (fair market rents) are set annually through Automatic OCAF (operating cost adjustment factor) with an effective renewal date of January 1 of each calendar year. The property is subject to terms stipulated in the recorded HUD “Mark-to-Market” use agreement.

PROXIMITY AND AMENITIES: Nearby schools include Fred L. Thompson Junior High School, Stine Elementary School and Amy B. Seibert Elementary School. The closest grocery stores are La Plazita, Don Pepes Market and Samco 6. Nearby coffee shops include Moti Bagh Cafe, Mossman’s Coffee Shops and Catering Company and 7-Eleven. Nearby restaurants include Don Pepe’s Mexican Restaurant, Foster’s Freeze and Golden Ox Diner. 2701 S Real Rd is near Wilson and Patriots Park. There are good bike lanes and the terrain is flat as a pancake.

ACCESSIBILTY: Conveniently located which is approximately 5 miles west of Golden State HWY 99, east of Akers Road, north of Panama Lane, and south of Wilson Road.

UP-KEEP OF THE PROPERTY: The current owner has been spending a tremendous amount of capital for the up-keep of the property. For example, painting, preventative maintenance, such as: railings, replaced piping and wood floors, etc.

ABOUT BAKERSFIELD: Bakersfield is one of the fastest growing cities in California with a population of over 250,000 that qualifies it as the 13th largest city in California and 88th largest in the United States. It is also the capital of Kern County-one of the richest agricultural regions in the world, as well as the most prolific oil-producing county in the country. In fact, Kern County agriculture produces more food than most states, and if Kern were a state all its own it would rank just behind Alaska, Texas and Louisiana as the fourth largest oil-producing region in the entire country.

GEOGRAPHY: Bakersfield is located in the south end of the great San Joaquin Valley of California at an elevation of 492 feet. Sitting on the west side of the Sierra Nevada Mountains, it is centrally located about 90 miles north of Los Angeles, 90 miles south of Fresno, and 90 miles east of the Pacific Ocean, which puts Bakersfield close to a variety recreational and business resources. In fact, you can be basking in the sun at Pismo Beach on the Pacific Coast, rock hunting in the Mojave Desert, downhill skiing in the Sierra Nevadas, or stuck in L.A. traffic just a short two-hour drive from town.

FOR SALE: THE REAL GARDENS20 UNITS WITH HAP CONTRACT2701 S Real Road | Bakersfield, CA 93309

Please coordinate property tours with the listing agent, Abu Majumder @ 310-856-1121.

# of Units Bed/Bath Square Feet Building Size Average Rents

15 2BR/1BA 871 SF 13,065 $822

5 3BR/1.5BA 1,104 SF 5,520 $1,047

Tax Rates: 1.121194%

Insurance $5,994

Utilities $13,469

Repair and Maintenance: $550/u/y $11,000

Management-onsite & Offsite: 8% of SGI $16,862

Pest Control $900

Landscaping: $2,400

Licensing: $500

Reserve $150/u/y $3,000

FINANCING: Cash to new loan. Currently the property has conventional Fannie Mae loans and is assumable.

All Units are 2-story Townhomes. Built in 1983.

Note: In an approximately 60 days rental income shall increase an additional 4%+ straight across

Current Rental Income $17,565 a month; Annual $210,780

INCOME

EXPENSES (Annualized):

FINANCIALS

PROPERTY DESCRIPTION:

The property is at 2701 S Real Rd. a multi-family home in Bakersfield, CA 93309. it is surrounded by well-kept single family and multi-housing communities. This 20 unit, 20,215-square foot multi-family home sits on a 1 acre lot. This property was built in 1983. Unit mixes are: 5-three (3) bedrooms 1.5 bath, and 15-two (2) bedrooms and 1 bath. Every unit has washer and dryer hookups. All units are Town House style. All units are separately metered for gas and electric. There are three separate buildings with lots of open spaces with greeneries. There is an on-site laundry facility and storage room for repair-maintenance equipment and supplies. Tenants parking is on site and there are approximately 44 regular and 2 handicap spaces.

THE OPPORTUNITY:

This 20 unit Real Garden Apartments offers a stable and predictable income and cash flow backed by the full faith and credit of the United States government - HUD. The property is encumbered by a 30-year use agreement for Multi-family Projects Participating in the Mark-to-Market Program under the Multi-family Assisted Housing Reform and Affordability Act (MAHRA) of 1997. The property is also encumbered by a 20-year, Project-based Section 8 Housing Assistance Payment (HAP) Contract from the U.S. Department of Housing and Urban Development. This contract, Section 8 Project based, is administered by the lA Multifamily HUD hub and affects all 20 units. The property’s fMR (fair market rents) are set annually through Automatic OCAf (operating cost adjustment factor) with an effective renewal date of January 1 of each calendar year. The property is subject to terms stipulated in the recorded HUD “Mark-to-Market” use agreement. This 20 year HAP contract expires on March 29, 2024.

Please coordinate property tours with the listing agent, Abu Majumder @ 310-856-1121.

JM PROPERTIES, INC

FOR SALE: THE REAL GARDENS 20 UNITS WITH HAP CONTRACT2 7 0 1 S Re a l Ro a d | B a ke r s f i e l d , CA 9 3 3 0 9

PROXIMITY AND AMENITIES: Nearby schools include fred l. Thompson Junior High School, Stine Elementary School and Amy B. Seibert Elementary School. The closest grocery stores are la Plazita, Don Pepes Market and Samco 6. Nearby coffee shops include Moti Bagh Cafe, Mossman’s Coffee Shops and Catering Company and 7-Eleven. Nearby restaurants include Don Pepe’s Mexican Restaurant, foster’s freeze and Golden Ox Diner. 2701 S Real Rd is near Wilson and Patriots Park. There are good bike lanes and the terrain is flat as a pancake.

ACCESSIBILTY:

Conveniently located which is approximately 5 miles west of Golden State HWY 99, east of Akers Road, north of Panama lane, and south of Wilson Road.

UP-KEEP OF THE PROPERTY: The current owner has been spending a tremendous amount of capital for the up-keep of the property. for example, painting, preventative maintenance, such as: railings, replaced piping and wood floors, etc.

Please coordinate property tours with the listing agent, Abu Majumder @ 310-856-1121.

ABOUT BAKERSFIELD:

Bakersfield is one of the fastest growing cities in California with a population of over 250,000 that qualifies it as the 13th largest city in California and 88th largest in the United States. it is also the capital of Kern County-one of the richest agricultural regions in the world, as well as the most prolific oil-producing county in the country. in fact, Kern County agriculture produces more food than most states, and if Kern were a state all its own it would rank just behind Alaska, Texas and louisiana as the fourth largest oil-producing region in the entire country.

GEOGRAPHY:

Bakersfield is located in the south end of the great San Joaquin Valley of California at an elevation of 492 feet. Sitting on the west side of the Sierra Nevada Mountains, it is centrally located about 90 miles north of los Angeles, 90 miles south of fresno, and 90 miles east of the Pacific Ocean, which puts Bakersfield close to a variety recreational and business resources. in fact, you can be basking in the sun at Pismo Beach on the Pacific Coast, rock hunting in the Mojave Desert, downhill skiing in the Sierra Nevadas, or stuck in l.A. traffic just a short two-hour drive from town.

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JM PROPERTIES, INC

FOR SALE: THE REAL GARDENS 20 UNITS WITH HAP CONTRACT2 7 0 1 S Re a l Ro a d | B a ke r s f i e l d , CA 9 3 3 0 9

JM PROPERTIES, INC

THE OPPORTUNITY: A 20 units, the Real Garden Apartments offering affords an investor a stable and predictable income and cash flow backed by the full faith and credit of the United States government. The property is encumbered by a 30-year use agreement for Multi-family Projects Participating in the Mark-to-Market Program under the Multi-family Assisted Housing Reform and Affordability Act (MAHRA) of 1997. The property is also encumbered by a 20-year, Project-based Section 8 Housing Assistance Payment (HAP) Contract from the U.S. Department of Housing and Urban Development. This contract, Section 8 Project is administered by the LA Multifamily HUD hub and affects all 20 units. The property’s FMR (fair market rents) are set annually through Automatic OCAF (operating cost adjustment factor) with an effective renewal date of January 1 of each calendar year. The property is subject to terms stipulated in the recorded HUD “Mark-to-Market” use agreement.

PROXIMITY AND AMENITIES: Nearby schools include Fred L. Thompson Junior High School, Stine Elementary School and Amy B. Seibert Elementary School. The closest grocery stores are La Plazita, Don Pepes Market and Samco 6. Nearby coffee shops include Moti Bagh Cafe, Mossman’s Coffee Shops and Catering Company and 7-Eleven. Nearby restaurants include Don Pepe’s Mexican Restaurant, Foster’s Freeze and Golden Ox Diner. 2701 S Real Rd is near Wilson and Patriots Park. There are good bike lanes and the terrain is flat as a pancake.

ACCESSIBILTY: Conveniently located which is approximately 5 miles west of Golden State HWY 99, east of Akers Road, north of Panama Lane, and south of Wilson Road.

UP-KEEP OF THE PROPERTY: The current owner has been spending a tremendous amount of capital for the up-keep of the property. For example, painting, preventative maintenance, such as: railings, replaced piping and wood floors, etc.

ABOUT BAKERSFIELD: Bakersfield is one of the fastest growing cities in California with a population of over 250,000 that qualifies it as the 13th largest city in California and 88th largest in the United States. It is also the capital of Kern County-one of the richest agricultural regions in the world, as well as the most prolific oil-producing county in the country. In fact, Kern County agriculture produces more food than most states, and if Kern were a state all its own it would rank just behind Alaska, Texas and Louisiana as the fourth largest oil-producing region in the entire country.

GEOGRAPHY: Bakersfield is located in the south end of the great San Joaquin Valley of California at an elevation of 492 feet. Sitting on the west side of the Sierra Nevada Mountains, it is centrally located about 90 miles north of Los Angeles, 90 miles south of Fresno, and 90 miles east of the Pacific Ocean, which puts Bakersfield close to a variety recreational and business resources. In fact, you can be basking in the sun at Pismo Beach on the Pacific Coast, rock hunting in the Mojave Desert, downhill skiing in the Sierra Nevadas, or stuck in L.A. traffic just a short two-hour drive from town.

FOR SALE: THE REAL GARDENS20 UNITS WITH HAP CONTRACT2701 S Real Road | Bakersfield, CA 93309

Please coordinate property tours with the listing agent, Abu Majumder @ 310-856-1121.

# of Units Bed/Bath Square Feet Building Size Average Rents

15 2BR/1BA 871 SF 13,065 $822

5 3BR/1.5BA 1,104 SF 5,520 $1,047

Tax Rates: 1.121194%

Insurance $5,994

Utilities $13,469

Repair and Maintenance: $550/u/y $11,000

Management-onsite & Offsite: 8% of SGI $16,862

Pest Control $900

Landscaping: $2,400

Licensing: $500

Reserve $150/u/y $3,000

FINANCING: Cash to new loan. Currently the property has conventional Fannie Mae loans and is assumable.

All Units are 2-story Townhomes. Built in 1983.

Note: In an approximately 60 days rental income shall increase an additional 4%+ straight across

Current Rental Income $17,565 a month; Annual $210,780

INCOME

EXPENSES (Annualized):

FINANCIALS

Actual Pro-forma

Scheduled Gross income

Scheduled Gross income: $219,660 $226,185

less Vacancy Rate Reserve: 3% $6,525 $6,721

Gross Operating income: $213,135 $219,464

Annualized Estimated Operating Expenses

Taxes: $25,200* $25,200*insurance: $6,084 $6,084Electric: $2,131 $2,131 Gas: $305 $305 Trash: $4,688 $4,688 Water: $9,405 $9,405 Repair and Maintenance: $650/u/y $13,000* $13,000*Management-onsite: 5% of SGi $10,875* $10,875*Management-Offsite: 6% of SGi $13,050* $13,050*Reserve $100/u/y $2,000* $2,000*

Total Estimated Operating Expense: $86,738 $86,738

Percentage (%) of SGi 39.5% 38.3%

Per Unit expenses per year $4,337 $4,337

Per Net Sq. ft expenses per year $4.29 $4.29

Net Operating income $126,397 $132,726

Pre-Tax Cash flow:$33,420 or 6.4%

$39,750 or 7.6%

Property Taxes Rate 1.20%* 1.20%*

Proposed financing:4.25% interest rate fixed for 5 years, 360 months amortization due in 5 years

CASH FLOW ANALYSISRENT ROLL

Unit Mix CURRENT RENT Unit Mix CURRENT

RENT

3/1.5 $1,081 2/1 $848

3/1.5 $1,081 2/1 $848

3/1.5 $1,081 2/1 $848

3/1.5 $1,081 2/1 $848

3/1.5 $1,081 2/1 $848

2/1 $848

2/1 $848

2/1 $848

2/1 $848

2/1 $848

2/1 $848

2/1 $848

2/1 $848

2/1 $848

2/1 $848

TOTAl $5,405 $12,720*Estimation