1 2 A P A R T M E N T H O M E S 101 AVENUE PORTOLA • HALF MOON BAY • CALIFORNIA

O F F E R I N G M E M O R A N D U M

Disclaimer: The information contained herein has been obtained from sources deemed reliable but has not been verified and no guarantee, warranty or representation, either express or implied, is made with respect to such information. Terms of sale or lease and availability are subject to change or withdrawal without notice.

E X C L U S I V E L Y P R E S E N T E D B Y A R A N E W M A R K

BRIAN HENRYbhenry@aranewmark.com

650.823.1220License CA: 01385537

SCOTT KILPATRICKskilpatrick@aranewmark.com

650.868.0738License CA: 01271912

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1 2 A P A R T M E N T H O M E S 101 AVENUE PORTOLA • HALF MOON BAY • CALIFORNIA

O F F E R I N G M E M O R A N D U M

CONFIDENTIALITY AGREEMENTThe information contained herein is strictly confidential, furnished solely for the purpose of considering the acquisition of the property described herein, and is not to be used for any other purpose or made available to any other person without the express written consent of ARA Newmark.

It has been obtained from the Seller and may include other sources believed to be reliable, but no representation is being made with regard to its accuracy or completeness.

Prospective investors should undertake their own investigations and reach their own conclusions without reliance upon the material contained herein. Neither the Seller nor the Agent nor any of their respective officers, agents or principals has made or will make any representations or warranties, express or implied, as to the accuracy or completeness of the Offering Memorandum or any of its contents, and no legal commitment or obligation shall arise by reason of the Offering Memorandum or its contents.

Analysis and verification of the information contained in the Offering Memorandum is solely the responsibility of the prospective purchaser.

The Seller and Agent expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers to purchase the property and/or terminate discussions with any entity at any time with or without notice.

The Seller shall have no legal commitment or obligations to any entity reviewing the Offering Memorandum or making an offer to purchase the property unless and until such offer for the property is approved by the Seller, and any conditions to the Buyer’s obligations thereunder have been satisfied or waived.

E X C L U S I V E L Y P R E S E N T E D B Y A R A N E W M A R K

BRIAN HENRYbhenry@aranewmark.com

650.823.1220License CA: 01385537

SCOTT KILPATRICKskilpatrick@aranewmark.com

650.868.0738License CA: 01271912

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1 2 A P A R T M E N T H O M E S 101 AVENUE PORTOLA • HALF MOON BAY • CALIFORNIA

O F F E R I N G M E M O R A N D U M

INVESTMENT HIGHLIGHTS ..................................................................................5 - 6LOCATION OVERVIEW .....................................................................................8 - 15 PROPERTY OVERVIEW ....................................................................................17 - 28COMPARABLE ANALYSIS ................................................................................30 - 32OFFERING SUMMARY ....................................................................................34 - 37

TABLE OF CONTENTS

Investment HIgHlIgHts

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1 2 A P A R T M E N T H O M E S 101 AVENUE PORTOLA • HALF MOON BAY • CALIFORNIA

O F F E R I N G M E M O R A N D U M

LUXURY BUILDING AMENITIES

• Average household income exceeds $180,000 within 1 & 3 miles of property

• Building constructed to condo standards, condo conversion exit could be option

• All units have individual tankless hot water heaters and are individually metered for gas, electric, and water

• Strong barriers to entry with zero competing rental product

• Entertain Outdoors – Gas BBQ, Seating, Fireplace

• Access Controlled Building

• Ample Private Storage for Bikes, Surfboards, Kayaks

• Modern Coastal Architecture

• Ample Access Controlled Parking

• Strong rental demand, building fully leased in thirty days

• Comprehensive rental marketing platform in place for new buyer

• Green Building Features Include Superior Energy Efficiency and Indoor Air Quality

• Secured building with twenty-four hour video monitoring system that is accessible on-site or on-line

INVESTMENT HIGHLIGHTS

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1 2 A P A R T M E N T H O M E S 101 AVENUE PORTOLA • HALF MOON BAY • CALIFORNIA

O F F E R I N G M E M O R A N D U M

INVESTMENT HIGHLIGHTS

HIGH END UNIT INTERIORS

• Highest Quality Finishes

• Spacious Private Balcony

• Kitchen and Great Room Ideal for Entertaining

• Full Size W/D

• Chef’s Kitchen w/ Stainless Whirlpool™ Gas Appliances

• Ample Interior Storage

• Each resident has electronic access to building, storage, bbq area and individual unit with digital fob

• Significant upside in rental income through short term or vacation rentals on select units

• All top floor units have vaulted ceilings and an additional window

locatIonovervIew

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1 2 A P A R T M E N T H O M E S 101 AVENUE PORTOLA • HALF MOON BAY • CALIFORNIA

O F F E R I N G M E M O R A N D U M

LOCATION OVERVIEWHalf Moon Bay is located on the Pacific Coast between forested hills and some of the most beautiful coastlines that California has to offer. It is approximately 28 miles south of San Francisco, 16 miles west of San Mateo, and 26 miles northwest of downtown Palo Alto, the heart of Silicon Valley. Half Moon Bay lies within the western most portion of San Mateo County, but has easy access to all the major employers from San Francisco to San Jose.

With it’s historic downtown, shops, art galleries, restaurants, accommodations, beaches, parks, golf courses, nurseries, and farms, it’s a wonderful local and regional destination. The Pumpkin Festival held in October draws people from around the country to enjoy its panoramic vistas, fine cuisine, arts, crafts and genuine hospitality.

Half Moon Bay is home to Mavericks Beach at Pillar Point. It is the site of the annual big wave surfing competition called Maverick’s. The big wave surf area is located a quarter-mile offshore from the bluff top viewing areas outside the Air Force military installation on Pillar Point. A huge white ball marks this spot on the bluff from miles away. The conditions under the water at Mavericks create a unique big break when large winter swells roll in. The competition is held when and if conditions occur between November and March. The first Mavericks event happened in 1999 and has happened in most years since.

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1 2 A P A R T M E N T H O M E S 101 AVENUE PORTOLA • HALF MOON BAY • CALIFORNIA

O F F E R I N G M E M O R A N D U M

NEARBY AMENITIES

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1 2 A P A R T M E N T H O M E S 101 AVENUE PORTOLA • HALF MOON BAY • CALIFORNIA

O F F E R I N G M E M O R A N D U M

NEARBY AMENITIES

101 AVENUE PORTOLA 1 MILE 3 MILES 5 MILES

PopulationEstimated Population (2017) 5,504 13,253 24,478Projected Population (2022) 5,539 13,335 24,660

HouseholdsEstimated Households (2017) 2,035 4,503 8,433Projected Households (2022) 2,094 4,645 8,716Census Households (2010) 6,607,224 14.4 M 27.1 MCensus Households (2000) 1,746 3,977 7,346

Projected Annual Growth (2017-2022) 59 0.6% 142 0.6% 282 0.7%Historical Annual Change (2000-2017) 289 1.0% 526 0.8% 1,088 0.9%

Average Household IncomeEstimated Average Household Income (2017) $180,831 $180,511 $177,923Projected Average Household Income (2022) $233,612 $234,643 $229,090Census Average Household Income (2010) $146,635 $133,060 $129,772Census Average Household Income (2000) $123,642 $107,110 $111,502

Projected Annual Change (2017-2022) $52,780 5.8% $54,132 6.0% $51,166 5.8%Historical Annual Change (2000-2017) $57,189 2.7% $73,401 4.0% $66,422 3.5%

Median Household IncomeEstimated Median Household Income (2017) $133,010 $132,842 $134,070Projected Median Household Income (2022) $153,640 $152,013 $155,905Census Median Household Income (2010) $113,155 $108,126 $101,820Census Median Household Income (2000) $98,088 $90,156 $87,336

Projected Annual Change (2017-2022) $20,630 3.1% $19,171 2.9% $21,836 3.3%Historical Annual Change (2000-2017) $34,922 2.1% $42,687 2.8% $46,734 3.1%

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1 2 A P A R T M E N T H O M E S 101 AVENUE PORTOLA • HALF MOON BAY • CALIFORNIA

O F F E R I N G M E M O R A N D U M

CENSUS OVERVIEW - POPULATION & HOUSEHOLD INCOME

101 AVENUE PORTOLA 1 MILE 3 MILES 5 MILES

HousingTotal Housing Units (2017) 2,113 4,702 8,797Total Housing Units (2010) 2,093 4,565 8,424Historical Annual Growth (2010-2017) 20 0.1% 136 0.4% 373 0.6%Housing Units Occupied (2017) 2,035 96.3% 4,503 95.8% 8,433 95.9%Housing Units Owner-Occupied 1,523 74.8% 3,419 75.9% 6,203 73.6%Housing Units Renter-Occupied 512 25.2% 1,084 24.1% 2,230 26.4%Housing Units Vacant (2017) 78 3.8% 199 4.4% 364 4.3%

Household Income Distribution (2017)HH Income $200,000 or More 559 27.4% 1,212 26.9% 2,471 29.3%HH Income $150,000 to $199,999 268 13.2% 582 12.9% 1,084 12.9%HH Income $125,000 to $149,999 218 10.7% 445 9.9% 720 8.5%HH Income $100,000 to $124,999 261 12.8% 521 11.6% 901 10.7%HH Income $75,000 to $99,999 199 9.8% 552 12.3% 853 10.1%HH Income $50,000 to $74,999 226 11.1% 536 11.9% 1,005 11.9%HH Income $35,000 to $49,999 175 8.6% 278 6.2% 520 6.2%HH Income $25,000 to $34,999 54 2.7% 137 3.1% 320 3.8%HH Income $15,000 to $24,999 75 3.7% 147 3.3% 299 3.5%HH Income $10,000 to $14,999 - - 30 0.7% 101 1.2%HH Income Under $10,000 - - 62 1.4% 158 1.9%

Travel Time (2015)Worker Base Age 16 years or Over 626 1,423 2,522Travel to Work in 14 Minutes or Less 2 0.3% 30 2.1% 55 2.2%Travel to Work in 15 to 29 Minutes 229 36.6% 540 38.0% 978 38.8%Travel to Work in 30 to 59 Minutes 99 15.8% 256 18.0% 395 15.6%Travel to Work in 60 Minutes or More 577 92.2% 1,362 95.7% 2,719 107.8%Work at Home 2 0.4% 26 1.8% 83 3.3%

Average Minutes Travel to Work 35.9 36.2 43.5

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1 2 A P A R T M E N T H O M E S 101 AVENUE PORTOLA • HALF MOON BAY • CALIFORNIA

O F F E R I N G M E M O R A N D U M

CENSUS OVERVIEW - HOUSING, INCOME & TRAVEL TIMES

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SAN FRANCISCO COMPANIES MAPFrom San Francisco to Maverick’s Apartments is 25 miles and approximately 39 minutes away.

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1 2 A P A R T M E N T H O M E S 101 AVENUE PORTOLA • HALF MOON BAY • CALIFORNIA

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92/101 CORRIDOR COMPANIES MAPFrom Hwy 101 & Hwy 92 to Maverick’s Apartments is 17.8 miles and approximately 30 minutes away.

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SILICON VALLEY COMPANIES MAPFrom Silicon Valley to Mavericks Apartments is 29 miles and approximately 45 minutes away.

ProPerty overvIew

DETAILSAddress 101 Avenue Portola

Half Moon Bay

County San Mateo

APN 047-206-230

County Use Multi Family

ATTRIBUTESUnits 12

Rentable Square Feet 13,096

Average Unit Size (Sq Ft) 1,091

Land Area (Sq Ft) 17,810

Year Built Sep-17

Parking 5 Open 19 Garage

CONSTRUCTIONFoundation Concrete Podium Garage

Exterior Walls Stone, Stucco, & Hardi-Plank Siding

Roof Composition Shingle

Balcony Each Unit

Laundry Facilities In unit

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1 2 A P A R T M E N T H O M E S 101 AVENUE PORTOLA • HALF MOON BAY • CALIFORNIA

O F F E R I N G M E M O R A N D U M

OFFERING SUMMARY

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1 2 A P A R T M E N T H O M E S 101 AVENUE PORTOLA • HALF MOON BAY • CALIFORNIA

O F F E R I N G M E M O R A N D U M

PROPERTY OVERVIEW - LOCATION MAP

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1 2 A P A R T M E N T H O M E S 101 AVENUE PORTOLA • HALF MOON BAY • CALIFORNIA

O F F E R I N G M E M O R A N D U M

PROPERTY OVERVIEW - LOCAL MAP

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1 2 A P A R T M E N T H O M E S 101 AVENUE PORTOLA • HALF MOON BAY • CALIFORNIA

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PROPERTY OVERVIEW - PARCEL MAP - PARCEL 047-206-230

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1 2 A P A R T M E N T H O M E S 101 AVENUE PORTOLA • HALF MOON BAY • CALIFORNIA

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PROPERTY OVERVIEW - EXTERIOR PHOTOS

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1 2 A P A R T M E N T H O M E S 101 AVENUE PORTOLA • HALF MOON BAY • CALIFORNIA

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PROPERTY OVERVIEW - EXTERIOR PHOTOS

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1 2 A P A R T M E N T H O M E S 101 AVENUE PORTOLA • HALF MOON BAY • CALIFORNIA

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PROPERTY OVERVIEW - INTERIOR PHOTOS

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1 2 A P A R T M E N T H O M E S 101 AVENUE PORTOLA • HALF MOON BAY • CALIFORNIA

O F F E R I N G M E M O R A N D U M

FLOOR PLAN APLAN TYPE 2 BEDROOM

2 BATHROOM

SQUARE FEET 1,009

CURRENT RENTAL RATE Mountain View $3,300 Mountain View $3,459

PROPERTY OVERVIEW

Please Note: Renderings are an artist’s conception and are intended only as a general reference. Features, materials, finishes and layout of subject unit may be different than shown.

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1 2 A P A R T M E N T H O M E S 101 AVENUE PORTOLA • HALF MOON BAY • CALIFORNIA

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PROPERTY OVERVIEW

FLOOR PLAN BPLAN TYPE 3 BEDROOMS

2 BATHROOMS

SQUARE FEET 1,330

CURRENT RENTAL RATE Ocean View $3,925 Premium Ocean View $4,424

Please Note: Renderings are an artist’s conception and are intended only as a general reference. Features, materials, finishes and layout of subject unit may be different than shown.

PROPERTY OVERVIEW

FLOOR PLAN CPLAN TYPE 2 BEDROOMS

2 BATHROOMS

SQUARE FEET 1,067

CURRENT RENTAL RATE Mountain View $2,995 & $3,361 Ocean View $3,200 Premium Ocean View $3,675

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1 2 A P A R T M E N T H O M E S 101 AVENUE PORTOLA • HALF MOON BAY • CALIFORNIA

O F F E R I N G M E M O R A N D U M

Please Note: Renderings are an artist’s conception and are intended only as a general reference. Features, materials, finishes and layout of subject unit may be different than shown.

PROPERTY OVERVIEW

FLOOR PLAN DPLAN TYPE 2 BEDROOMS

2 BATHROOMS

SQUARE FEET 1,082

CURRENT RENTAL RATE Mountain View $3,400 Mountain View 3,450

Please Note: Renderings are an artist’s conception and are intended only as a general reference. Features, materials, finishes and layout of subject unit may be different than shown.

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1 2 A P A R T M E N T H O M E S 101 AVENUE PORTOLA • HALF MOON BAY • CALIFORNIA

O F F E R I N G M E M O R A N D U M

PROPERTY OVERVIEW

PROPERTY OVERVIEW

FLOOR PLAN EPLAN TYPE 2 BEDROOMS

2 BATHROOMS

SQUARE FEET 983

CURRENT RENTAL RATE Ocean View $3,400 Premium Ocean View $3,420

Please Note: Renderings are an artist’s conception and are intended only as a general reference. Features, materials, finishes and layout of subject unit may be different than shown.

PROPERTY OVERVIEW

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1 2 A P A R T M E N T H O M E S 101 AVENUE PORTOLA • HALF MOON BAY • CALIFORNIA

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comParable analysIs

1

2

35

64

380 ESPLANADE AVENUE PACIFICA, CA 940441

670 HICKEY BLVD. PACIFICA, CA 940442

265 GATEWAY DRIVE PACIFICA, CA 940443

365 TALBOT AVENUE PACIFICA, CA 940444

279 IMPERIAL COURT PACIFICA, CA 940445

2 PACIFICA BAY CIRCLE SAN BRUNO, CA 940666

502 STETSON STREET MOSS BEACH, CA 94038 7

605 MAIN STREET MONTARA, CA 94037 8

108 HOBART STREET SAN MATEO, CA 9

200 DAVEY GLEN ROAD BELMONT, CA 10

1950 ELKHORN COURT SAN MATEO, CA 11

10

119

7

8

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1 2 A P A R T M E N T H O M E S 101 AVENUE PORTOLA • HALF MOON BAY • CALIFORNIA

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COMPARABLE ANALYSIS RENT COMPARABLES

COMPARABLE # 1 Units Type Sq Ft Current Rent $/Sq Ft

380 Esplanade Avenue , Pacifica, CA 94044 1 2+1 925 $4,200.00 $4.54

The Bluffs at Pacifica. Ocean Views. Smaller unit with 1 bath. Renovated. Washer Dryer. Units have balcony or patios. Gated entrance.

COMPARABLE # 2 Units Type Sq Ft Current Rent $/Sq Ft

670 Hickey Boulevard, Pacifica, CA 94044 1 2+2 955 $4,504.00 $4.72

Pacific Park Apartments. Attached garage. Wood plank flooring. Stainless steel appliances and granite counter tops. Community Amenities: Common Laundry Room, Fitness Center, Dog Park, Outdoor Lounge.

COMPARABLE # 3 Units Type Sq Ft Current Rent $/Sq Ft

265 Gateway Drive, Pacifica, CA 94044 1 2+2 950 $3,310.00 $3.48

Eaves Pacifica. Fireplace, Patio, shared storage. Pet friendly. Renovated kitchens and bathrooms. Wall to wall carpet flooring. Fitness center, onsite common laundry.

COMPARABLE # 4 Units Type Sq Ft Current Rent $/Sq Ft

365 Talbot Avenue, Pacifica, CA 94044 1 2+1 1,015 $3,767.00 $3.71

Horizons West Apartments. Wood plank flooring, Balcony or patio, dishwasher, garbage disposal. Fitness center, Onsite common laundry, gated entrance, pet friendly.

COMPARABLE # 5 Units Type Sq Ft Current Rent $/Sq Ft

279 Imperial Court, Pacifica, CA 94044 1 2+2 1,000 $4,028.0 $4.03

Fairmont Apartments. Updated unit, crown molding, updated light fixtures, dishwasher, new cabinets. Onsite common laundry. No pets.

COMPARABLE # 6 Units Type Sq Ft Current Rent $/Sq Ft

2 Pacific Bay Circle, San Bruno, CA 94066 1 2+2 942 $4,725.0 $5.02

Pacific Bay Vistas. Ocean view, wood plank flooring, granite countertops, GE Appliances including dishwasher and in unit laundry. Fitness center, swimming pool, outdoor fireplace lounge, dog friendly.

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1 2 A P A R T M E N T H O M E S 101 AVENUE PORTOLA • HALF MOON BAY • CALIFORNIA

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COMPARABLE ANALYSIS - RENT COMPARABLES

COMPARABLE # 7 Units Type Sq Ft Current Rent $/Sq Ft

502 Stetson Street, Moss Beach, CA 94038 1 3x2 1,390 $4,700.0 $3.38

Ocean views. Refinished hardwood, floors, 1 updated bathroom. Gas fireplace and views. No pets.

COMPARABLE # 8 Units Type Sq Ft Current Rent $/Sq Ft

605 Main Street, Montara, CA 94037 1 2x2 1,450 $4,200.0 $2.90

Spacious 2 bedroom, 2 bath single story home with fabulous view of waves crashing on Montara State Beach.

COMPARABLE # 9 Units Type Sq Ft Current Rent $/Sq Ft

108 Hobart Street, San Mateo, CA 1 3x2.5 1700 $5,995.0 $3.53

Fully renovated apartment just off the 92 and West of El Camino. In unit W/D. Backyard, Carport parking.

COMPARABLE # 10 Units Type Sq Ft Current Rent $/Sq Ft

200 Davey Glen Road, Belmont, CA 1 3x2.5 1,432 $5,100.00 $3.56

Fully renovated apartment, quartz counters in kitchen and bath, stainless appliances, wood plank flooring, tile backsplash, in unit W/D

COMPARABLE # 11 Units Type Sq Ft Current Rent $/Sq Ft

1950 Elkhorn Avenue, San Mateo, CA 1 2x2 945 $4,150.0 $4.39

New construction, granite, stainless, AC, small clubhouse, pets allowed, in unit W/D

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1 2 A P A R T M E N T H O M E S 101 AVENUE PORTOLA • HALF MOON BAY • CALIFORNIA

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COMPARABLE ANALYSIS - RENT COMPARABLES

offerIng summary

CURRENT LOAN TO BE ASSUMED BY BUYERORIGINATION DATE FEBRUARY 1, 2018

LOAN BALANCE $5,375,000

LOAN RATE 3.77% (IO Year 1 Equals ± $92,000 in Additional Cash Flow)

LOAN DETAILS 5 YEAR FIXED W/1 YEAR INTEREST ONLY, then floating 3.25 bps over Libor, indexing every 6 months

AMORTIZATION 30 YEARS

DUE In 20 YEARS

CEILING 8.7%

FLOOR 3.77%

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1 2 A P A R T M E N T H O M E S 101 AVENUE PORTOLA • HALF MOON BAY • CALIFORNIA

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PROPERTY DETAILS

Address 101 Avenue Portola

Half Moon Bay

Price $9,480,000

Down Payment $4,105,000

Units 12

Price/Unit $790,000

Rentable Square Feet 13,096

Price/Sq. Ft $723.89

Year Built 2017

Land Area (Sq. Ft) 17,810

Current Cap Rate 3.49%

Market Cap Rate 4.24%

Current GRM 19.07

Market GRM 15.97

OPERATIONS SUMMARY CURRENT MARKETScheduled Gross Rent $497,160 $569,700

Vacancy 3.00% ($14,915) $39,879

Effective Gross Rent $482,245 $529,821

Other income $0 $24,000

Total Income $482,245 $553,821

Operating Expenses $28,212 $28,212

Non-Operating Expenses $121,075 $121,075

Total Expenses $151,687 $151,687

Net Operating Income $330,558 $402,134

Debt Service ($202,638) ($202,638)

Net Cash Flow 3.12% $127,920 4.86% $199,496

Total Return 3.12% $127,920 4.86% $199,496

RENT ROLL SUMMARYTYPE UNITS Sq Ft Current Rent $/Sq Ft Market Rent $/Sq Ft

2+2 Mountain View (201) 1 1,009 $3,300 $3.27 $3,700 $3.67

2+2 Mountain View (301) 1 1,009 $3,459 $3.43 $3,825 $3.79

2+2 Mountain View (203) 1 1,067 $2,995 $2.81 $3,695 $3.46

2+2 Mountain View (303) 1 1,067 $3,361 $3.15 $3,820 $3.58

2+2 Mountain View (205) 1 1,082 $3,400 $3.14 $3,800 $3.51

2+2 Mountain View (305) 1 1,082 $3,450 $3.19 $3,925 $3.63

2+2 Ocean Partial View (204) 1 1,077 $3,200 $2.97 $3,875 $3.60

2+2 Ocean Partial View (304) 1 1,077 $3,020 $2.80 $3,970 $3.69

2+2 Ocean View (206) 1 983 $3,420 $3.48 $3,870 $3.94

2+2 Premium Ocean View (306) 1 983 $3,675 $3.74 $3,995 $4.06

3+2 Ocean View (202) 1 1,330 $3,925 $2.95 $4,375 $3.29

3+2 Ocean View (302) 1 1,330 $4,225 $3.18 $4,625 $3.48

Total 12 13,096 $41,430 $3.16 $47,475 $3.63

FINANCINGLoan Amount $5,375,000

Interest Rate 3.77%

Amortization 30

Monthly Payment $24,954

Details

5 YEAR FIXED W/1 YEAR INTEREST ONLY, then floating 3.25 bps over Libor, indexing every 6 months

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1 2 A P A R T M E N T H O M E S 101 AVENUE PORTOLA • HALF MOON BAY • CALIFORNIA

O F F E R I N G M E M O R A N D U M

OFFERING SUMMARY - INTEREST ONLY THROUGH FEB 2019

* Assumes buyer rents two units on a short term bases for a $2,000 net average monthly premium.

PROPERTY DETAILS

Address 101 Avenue Portola

Half Moon Bay

Price $9,480,000

Down Payment $4,105,000

Units 12

Price/Unit $790,000

Rentable Square Feet 13,096

Price/Sq. Ft $723.89

Year Built 2017

Land Area (Sq. Ft) 17,810

Current Cap Rate 3.49%

Market Cap Rate 4.24%

Current GRM 19.07

Market GRM 15.97

OPERATIONS SUMMARY CURRENT MARKETScheduled Gross Rent $497,160 $569,700

Vacancy 3.00% ($14,915) $39,879

Effective Gross Rent $482,245 $529,821

Other income $0 $24,000

Total Income $482,245 $553,821

Operating Expenses $28,212 $28,212

Non-Operating Expenses $121,075 $121,075

Total Expenses $151,687 $151,687

Net Operating Income $330,558 $402,134

Debt Service ($299,442) ($299,442)

Net Cash Flow 0.76% $31,116 2.50% $102,692

Principal Reduction $98,495 $98,495

Total Return 3.16% $129,611 4.90% $201,187

RENT ROLL SUMMARYTYPE UNITS Sq Ft Current Rent $/Sq Ft Market Rent $/Sq Ft

2+2 Mountain View (201) 1 1,009 $3,300 $3.27 $3,700 $3.67

2+2 Mountain View (301) 1 1,009 $3,459 $3.43 $3,825 $3.79

2+2 Mountain View (203) 1 1,067 $2,995 $2.81 $3,695 $3.46

2+2 Mountain View (303) 1 1,067 $3,361 $3.15 $3,820 $3.58

2+2 Mountain View (205) 1 1,082 $3,400 $3.14 $3,800 $3.51

2+2 Mountain View (305) 1 1,082 $3,450 $3.19 $3,925 $3.63

2+2 Ocean Partial View (204) 1 1,077 $3,200 $2.97 $3,875 $3.60

2+2 Ocean Partial View (304) 1 1,077 $3,020 $2.80 $3,970 $3.69

2+2 Ocean View (206) 1 983 $3,420 $3.48 $3,870 $3.94

2+2 Premium Ocean View (306) 1 983 $3,675 $3.74 $3,995 $4.06

3+2 Ocean View (202) 1 1,330 $3,925 $2.95 $4,375 $3.29

3+2 Ocean View (302) 1 1,330 $4,225 $3.18 $4,625 $3.48

Total 12 13,096 $41,430 $3.16 $47,475 $3.63

FINANCINGLoan Amount $5,375,000

Interest Rate 3.77%

Amortization 30

Monthly Payment $24,954

Details

5 YEAR FIXED W/1 YEAR INTEREST ONLY, then floating 3.25 bps over Libor, indexing every 6 months

* Assumes buyer rents two units on a short term bases for a $2,000 net average monthly premium.

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O F F E R I N G M E M O R A N D U M

OFFERING SUMMARY - PRINCIPAL & INTEREST STARTING FEB 2019

OPERATIONS SUMMARY CURRENT MARKETScheduled Gross Rent $497,160 $569,700

Vacancy 3.00% ($14,915) 3.00% $39,879 Effective Gross Rent $482,245 $529,821

Short Term Rental Premium $0 $24,000 Total Income $482,245 $553,821

Repairs & Maintenance $6,000 $500 Unit $6,000 Landscaping $1,500 Est. $1,500

Trash $4,752 $4,752 On-Site Management $660 $7,920 $7,920

Electric $3,900 $3,900 Common area cleaner $1,800 $1,800

Water $2,340 $2,340 Operating Expenses $28,212 $28,212

Real Estate Taxes 1.09860% $104,147 $104,147 Special Assessments $15,065 $15,065 Insurance (Current) $1,863 $1,863

Non-Operating Expenses $121,075 $121,075 Reserves $2,400 $2,400

Total Expenses $151,687 $151,687 % Scheduled Gross Rent 30.51% 26.63%

Expenses/Unit $12,641 $12,641 Expenses/Sq. Ft $11.58 $11.58

Net Operating Income $330,558 $402,134

* No onsite manager required under 16 units. Current owner compensates one tenant with minimal duties to work with existing residents as needed.

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1 2 A P A R T M E N T H O M E S 101 AVENUE PORTOLA • HALF MOON BAY • CALIFORNIA

O F F E R I N G M E M O R A N D U M

OFFERING SUMMARY

E X C L U S I V E L Y P R E S E N T E D B Y A R A N E W M A R K

BRIAN HENRYbhenry@aranewmark.com

650.823.1220License CA: 01385537

SCOTT KILPATRICKskilpatrick@aranewmark.com

650.868.0738License CA: 01271912