1601-1605 Villa Street 200 Mariposa Avenue...Michelle Clark Senior Managing Director 650.688.8515 [email protected] CA RE License #01918902 Newmark Knight Frank 245 Lytton Avenue

1601-1605 Villa Street200 Mariposa Avenue

Mountain View, CaliforniaO F F E R I N G M E M O R A N D U M

Exclusively Listed By:

Keith SuddjianExecutive Managing [email protected] RE License #00673961

Michelle ClarkSenior Managing [email protected] RE License #01918902

Newmark Knight Frank 245 Lytton Avenue Suite 150Palo Alto, CA 94301650.322.2600 • Fax: 650.321.0719

1601-1605 Villa Street200 Mariposa Avenue

Mountain View, California

The information contained herein has either been given to us by the owner of the property or obtained from sources that Newmark Knight Frank believes to be reliable. We have no reason to doubt its accuracy, but we do not guarantee it. The value of this investment is dependent upon federal and state tax laws, as well as the investment income, the tax bracket and other factors, which the prospective buyer’s tax advisor and legal counsel should evaluate. The prospective buyer should carefully verify each item of income, expense and all other information contained herein including information regarding the legal status of the property and the presently existing residential units.The prospective buyer should measure all units prior to purchase and should NOT rely on squarefootage figures and depictions in this Offering Memorandum. Newmark Knight Frank has not measured the units. See Footnotes and Disclaimers at the end of this Offering Memorandum.

ANY PROSPECTIVE PURCHASER SHALL BE REQUIRED TO CONDUCT ITS OWN INVESTIGATIONREGARDING THE ZONING, BUILDING CODE, PERMIT STATUS AND HISTORY OF THE PROPERTY, AND TO RELY SOLELY ON THE RESULTS OF THAT INVESTIGATION. PLEASE DO NOT DISTURB RESIDENTS. A TOUR OF THE PROPERTY CAN BE ARRANGED THROUGH LISTING AGENTS ONLY.

Offering Summary

Property Overview

Rent Roll

Proforma Operating Statement

Property Photographs

Site Plan

Floor Plans

Parcel Map/Area Maps

Rent Comparables

Sale Comparables

Location Overview

Footnotes & Disclaimers

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Page 20-21

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The distributor of this communication is performing acts for which a real estate license is required. 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.

1601-1605 Villa St & 200 Mariposa AveMountain View, California

The information contained herein has been given to us by the owner of the property or other sources we deem reliable. We have no reason to doubt its accuracy, but we do not guarantee it. All information should be verified prior to purchase or sale. 44See Footnotes and Disclaimers at this end of this Offering Memorandum. The distributor of this communication is performing acts for which a real estate license is required. 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.

Offering Summary

FinancingProperty is owned free and clear of debt.

Buyer has the opportunity to obtain a new loan of their choice. The amount of the loan is dependent on the lender, loan program and buyer’s qualifications. Available loan amounts and the loan terms are subject to change and are not guaranteed.

Address1601-1605 Villa Street200 Mariposa Avenue

Mountain View, CA 94041

Price $1,650,000

# of Units 3

Price Per Unit $550,000

Current GIM 22.66

Market GIM 20.30

Current Cap Rate 2.46%

Market Cap Rate 2.91%

Price Per SF (1) $923

Price Per SF (2) $972

Year Built 1941

Lot Size ±8,262 SF

Zoning R1

APN 154-10-007

# of Units

Unit Type

Approx. SF

Current RentCurrent Rent/SF

Market Rent

1 1x1 576 $2,030 $3.52 $2,250

2 1x1 561 $1,764 - $2,250 $3.14 - $4.01 $2,250

4 1,698 $6,044 $3.56 $6,750

Unit Mix/Scheduled Income

(1) ±1,788 SF Source: LandVision (2) ±1,698 SF Source: Drafter Open Homes Photography

2Bd x 1Ba

1x1100%




Property DescriptionProperty Overview

Easy Access to:

• Downtown Mountain View (many restaurants & retailers)

• 2 Caltrain Stations: Castro & San Antonio

• Light Rail Station

• Mountain View Center for the Performing Arts

• Eagle Park

• Swimming Pool & Grassy Field

• The Village at San Antonio Shopping Center

Attractive 3 unit property located in a highly desirable Mountain View neighborhood. The immediate neighborhood consists primarily of apartments, townhomes and single-family homes.

These convenient destinations provide the residents of 1601-1605 Villa & 200 Mariposa a variety of restaurants, recreation activities, grocery stores, retailers and service providers to utilize and enjoy close to home.

The Village at San Antonio Downtown Mountain ViewShowPlace ICON Theatres

• Rengstorff Park

• Community Center • Swimming Pool

• Tennis Courts • Playground

• Pioneer Memorial Park

• Mariposa Park (short walk)

• Mountain View Public Library & Civic Center

• Safeway, Whole Foods & Trader Joe’s

• ShowPlace ICON Theaters

• Target & Walmart

• Shoreline Business Park

• Employers include Google, LinkedIn & Intuit

• Shoreline Park

• Highway 101

• Central Expressway

• El Camino Real




Property Overview Aerial Map

1601-1605 Vil la St200 Mariposa Ave

Downtown Mountain View

Rengstorff Park




Property Highlights & Improvements • Highly sought after location near Downtown Mountain View

• Improvements consist of a duplex (1601-1605 Villa) & detached single family home (200 Mariposa) on one parcel

• Large corner parcel (±8,262 SF Source: LandVision)

• All 3 units share a large yard area

• Each duplex unit has an attached 1-car garage with direct access to unit

• Single family home has a detached 2-car garage & in-unit laundry room

Property Overview

• Each duplex unit has laundry hookups and a dining room

• Site plan and single story buildings provide the residents with privacy

• Hardwood floors noted at some flooring surfaces

• Dual pane windows noted at many of the windows

• Kitchens equipped with freestanding oven/stove & refrigerator (garbage disposal in 1605 Villa)




Laundry Facilities• 1601-1605 Villa have laundry hookups in their 1-car garage

• 200 Mariposa has an in-unit laundry room

• The Seller does not own any of the laundry equipment at the property

Parking• 1601-1605 Villa: Both units have an attached 1-car garage and 1 uncovered tandem space

• 200 Mariposa: Detached 2-car garage and tandem driveway parking

Roof Coverings• 1601-1605 Villa & 200 Mariposa: Pitched Composition Shingle• Detached 2-car garage: Modified Bitumen with granular mineral surface

Heating Hot Water System• Floor Furnace • 3 Hot Water Heaters

• Each unit has an individual water heater

Utilities• 3 total gas meters and 3 total electric meters; master metered for water (2 house meters)

Property Overview

Water OwnerGarbage OwnerSewer OwnerIn Unit Electricity ResidentIn Unit Gas ResidentGas for In Unit Hot Water Resident

Utility Payment Responsibilities




Rent Roll

Address Unit Type

Approx. SF

Current Rent

EstimatedMarket

Rent

Security Deposit

Move-In Date

Lease Expiration

Date

Date of Last

Increase & Amount

Comment

1601 Villa 1x1 561 $1,764 $2,250 $1,100 5/1/2005 MTM 6/1/19$58

• 1-car garage with laundry hookups

• Shared yard

1605 Villa 1x1 561 $2,250 $2,250 TBD Vacant TBD N/A• 1-car garage with laundry hookups

• Shared yard

200 Mariposa 1x1 576 $2,030 $2,250 $1,200 9/11/2011 MTM 6/1/19$66

• 2-car garage

• In-unit laundry room

• Shared yard

1,698 $6,044 $6,750

MTM = Month to MonthTBD = To Be Determined

Proforma Operating StatementINCOME Current Proforma (Market)

Gross Scheduled Rent 72,528 (1) 81,000 (7)

Plus: Late Check Charge 61 (2) 61 (2)

Plus: Other Income 50 (2) 50 (2)

Plus: Deposit Forfeit 187 (2) 187 (2)

Gross Scheduled Income 72,826 81,298

Less: Vacancy and Collection Loss (3.0%) 2,176 (3) (4.0%) 3,240 (8)

Effective Gross Income 70,650 78,058

EXPENSES Property Tax 19,757 (4) 19,757 (4)

Appliance Repairs 35 (2) 35 (2)

Supplies 1,966 (2) 1,966 (2)

Pest Control 199 (2) 199 (2)

Grounds Maintenance 53 (2) 53 (2)

Maintenance & Repairs 1,688 (2) 1,688 (2)

Drapes 331 (2) 331 (2)

Janitorial 245 (2) 245 (2)

Painting 879 (2) 879 (2)

Water & Meter 834 (5) 834 (5)

Sewer 1,439 (5) 1,439 (5)

Garbage 1,606 (5) 1,606 (5)

Insurance 1,005 (6) 1,005 (6)

Total Operating Expenses 30,037 30,037Net Operating Income 40,613 48,021Operating Expenses as a percentage (%) of Gross Scheduled Income 41.24% 36.95%

Operating Expenses per Unit $10,012 $10,012

Operating Expenses per SF (assumes ±1,788 SF - Source: LandVision) $16.80 $16.80

Operating Expenses per SF (assumes ±1,698 SF - Source: Drafter Open Homes Photography) $17.69 $17.69

1601-1605 Villa St & 200 Mariposa AvePalo Alto, California

10See Footnotes and Disclaimers on page 11 of this Offering Memorandum. The distributor of this communication is performing acts for which a real estate license is required. 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.


The information contained herein has been given to us by the owner of the property or other sources we deem reliable. We have no reason to doubt its accuracy, but we do not guarantee it. All information should be verified prior to purchase or sale. 1111See Footnotes and Disclaimers at this end of this Offering Memorandum. The distributor of this communication is performing acts for which a real estate license is required. 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.

Proforma Operating Statement Footnotes (1) Based on current rent shown in the Rent Roll. Estimated market rent of $2,250/month was assumed for 1605 Villa which is scheduled to vacate 9/30/19. Actual rent level achieved for this unit may vary from this amount and is not guaranteed by Seller, Brokers or Agents.

(2) The Seller keeps one combined Operating Statement for 5 different properties it owns consisting of a total of 21 units of which 1601-1605 Villa & 200 Mariposa represents 3 of those 21 units. The amount shown is the prorated amount based on number of units. Therefore the amount shown represents 3/21 of the total amount for this line item in Calendar Year 2018 for the 21 units as a whole. The actual amount attributed to this property likely varies from this amount but because the owner kept one set of books for all 21 units the prorated amount based on number of units was used in determining the amount shown as determining the actual amount attributed to this particular property for this line item would be extremely difficult to ascertain. Buyer should underwrite based on what it thinks is an appropriate amount for this line item.

(3) Underwritten at 3% of the Gross Scheduled Rent, the actual amount may vary

(4) Based on the list price of $1,650,000 using the actual 2018-2019 Tax Year Rate of 1.1776% and the actual 2018-2019 Tax Year Special Assessments of $326.50

(5) Based on the actual amount for the approximate period of 3/21/18 to 3/20/19

(6) Based on the annual premium of $1,005.30 paid on approximately 1/28/19. In addition to this amount the owner paid $3,373 in premiums on approximately 9/26/18 for a Personal Umbrella Liability Policy and a premium of $214.87 on approximately 9/18/18 for Employment Practice Policy coverage, both these premiums were towards the full 21 units owned by the Seller and a prorated amount of these two premiums are not reflected in the Proforma Operating Statement. On approximately 1/28/19 the Seller paid a premium of $1,408 for earthquake coverage, this premium amount is not reflected in the Proforma Operating Statement. Buyer should obtain an insurance quote prior to Buyer contingency removal that reflects the types of coverages it would like to obtain on the property.

(7) Based on Estimated Market Rent amounts shown in the Rent Roll

(8) Underwritten at 4.0% of the Gross Scheduled Rent, the actual amount may vary

Note: In Calendar Year 2018 the Seller incurred the below expenditures for its 21 unit apartment portfolio which are not reflected in the Proforma Operating Statement. Buyer should insert and add into the Proforma Operating Statement the expenditures it thinks will reflect the manner in which it intends to operate the property. These expenditures might include Property Management, Gardening, Capital Improvements, Replacement Reserves, etc...

• $78,105.65 for Total Administrative Expenses for items such as On and Off-Site Property Management costs, payroll taxes, employee benefits, Office Expenses, Communication Expenses, grounds maintenance/gardening (which is currently a part of the Sellers On-Site Manager’s duties), etc… are included in this amount. The On- Site Manager currently resides at 527 & 529 Matadero Avenue, Palo Alto which consists of 8 of the 21 units in the Sellers portfolio.

• $1,459.69 for Workers Compensation Insurance

• $13.88 for Other Tax and License

• $26,713.39 for Capital Expenditures

• $1,900 for new garage doors at the 1601-1605 Villa & 200 Mariposa property which is 3 of the 21 units owned by the Seller. This amount is reflected in the Seller’s 2018 Operating Statement in the “Maintenance & Repairs” expense line item but is not reflected in the Proforma Operating Statement in this Offering Memorandum. • $873.88 for Laundry Lease Expense

Buyer is encouraged to call the City of Mountain View to determine any costs it may incur for the cost of any City programs in which the owner is responsible for the cost of some or all of the programs. These programs may include but are not limited to the City Multifamily Inspection Program and the City Rent Control Program.



Property Photographs

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DRIVEWAY/PARKING

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MAINENTRY

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DININGAREA LAUNDRY

ROOM

BEDROOM

LIVING ROOM

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KITCHEN KITCHEN

GARAGE GARAGE

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DININGROOM

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LAUNDRY LAUNDRY

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LIVING ROOM LIVING ROOM

1605 VILLA1601 VILLA

200 MARIPOSA


The information contained herein has been given to us by the owner of the property or other sources we deem reliable. We have no reason to doubt its accuracy, but we do not guarantee it. All information should be verified prior to purchase or sale. 1313Note: Lot configuration and placement of buildings and features on the lot are approximate and not guaranteed as accurate. Floor plans, square footage and dimensions are approximate and should not be relied upon without independent

verification. Prospective buyers should not rely on these plans, features, square footage and dimensions in making their purchase decision and should carefully verify the above items and all other information herein. This Site Plan was drafted by Open Homes Photography and is not guaranteed to be accurate by Brokers, Agents or Seller.

Site Plan



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MAINENTRY

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DININGAREA

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LAUNDRY LAUNDRY

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LIVING ROOM

LIVING ROOM LIVING ROOM

200 MARIPOSA AVENUE

1601 VILLA STREET 1605 VILLA STREET

Floorplans

Rendering & square footage information provided by Open Homes Photography. All measurements are approximate. While deemed reliable, no information on these floor plans including square footage amounts should be relied upon without independent verification.

LIVING SPACESquare Footage: 1,698 Sq Ft*

576

561

* 200 Mariposa Avenue

* 1601 Villa Street

* 1605 Villa Street 561

193193

* 1601 Villa Street: Garage

* 1605 Villa Street: Garage

* 2-Car Garage 414

PROPERT____________________Y SQF INFORMATION

NON-LIVING SPACE Square Footage: 800 Sq Ft*

APPROXIMATE TOTALLIVING & NON-LIVING SPACESquare Footage: 2,498 Sq Ft*



APN: 154-10-007

Parcel Map Area Maps

SITE

SITE



Rent ComparablesSUBJECT PROPERTY1601-1605 Villa St 200 Mariposa AveMountain View# of Units: 3Year Built: 1941

Unit Type Est. Market Rent Approx. SF Rent/SF Comments

1x1 $2,250 561-576 $3.91 - $4.01• Garage

• Laundry hookups• Shared yard

#3Sierra Vista Apts1760 California StMountain View# of Units: 17Year Built: 1960

Unit Type Asking Rent Approx. SF Rent/SF Comments

1x1 $2,250 650 $3.46 -

#4262 Mariposa AveMountain View# of Units: 26Year Built: 1959


1x1 $2,300 - -• Remodeled:

- New cabinets - Granite countertops- Hardwood flooring

#1776 Palo Alto AveMountain View# of Units: 12Year Built: 1958


1x1 $2,200 - - • Laminate flooring

#2The Arbors2260 California StMountain View# of Units: 162Year Built: 1962


1x1 $2,235 560 $3.99

• Remodeled:- Updated cabinets

- Granite countertops- Stainless steel

appliances



Rent Comparables

#6415 Del Medio AveMountain View# of Units: 9Year Built: 1959


1x1 $2,395 610 $3.93

• Remodeled:- New cabinets

- Quartz countertops- Stainless steel

appliances

#5Greenwood Apts 1797 California StMountain View# of Units: 25Year Built: 1958


1x1 $2,395 680 $3.52 • Hardwood flooring



Rent Comparables Map

1

2

3 45

6

SUBJECT PROPERTY1601-1605 Villa St 200 Mariposa Ave



Rent Comparables

$2,015

$2,200 $2,235 $2,250 $2,250$2,300

$2,395 $2,395

$-

$500

$1,000

$1,500

$2,000

$2,500

$3,000

1601-1605 Villa &200 MariposaCurrent Avg

776 Palo Alto The Arbors Sierra Vista Apts 1601-1605 Villa &200 Mariposa

Est. Market Avg

262 Mariposa Greenwood Apts 415 Del Medio

1 Bedroom x 1 BathAvg. Asking Rent of Comparables: $2,296

1601-1605 Villa & 200 Mariposa Current Avg Rent: $2,0151601-1605 Villa & 200 Mariposa Villa Est. Market Rent: $2,250



Sale Comparables

GIM = Gross Income Multiplier

Note: Property sold vacant.

Property Sale Price Price/Unit Price/SF GIM COE Unit/Bd/Ba

42 SherlandMountain View# of Units: 3Year Built: 1961

$2,700,000 $900,000 $912 - 6/23/19 2 - 2x11 - 3x2


726 MariposaMountain View# of Units: 4Year Built: 1955

$2,875,000 $718,750 $549 19.25 5/23/19 4 - 3x2


631 Fairmont Mountain View# of Units: 3Year Built: 1955

$2,350,000 $783,333 $972 18.36 6/13/19 3 - 2x1

Note: Single story triplex.


551 AlbertaSunnyvale# of Units: 3Year Built: 1969

$2,315,000 $771,667 $709 23.80 8/24/18 3 - 2x2


1865-1869 Alma Street Palo Alto# of Units: 3Year Built: 1954Lot Size: ±7,500

$2,300,000 $766,667 $1,067 26.25 8/29/19 3 - 2x1

Note: In determining Cap Rate, 40% of Gross Scheduled Income was assumed for Operating Expenses and Vacancy, actual amounts may vary.



Sale Comparables

GIM = Gross Income Multiplier


445 CarnerosSunnyvale# of Units: 3Year Built: 1968

$2,015,000 $671,667 $587 33.42 6/28/18 2 - 2x11 - 3x2


1106 Bonita AveMountain View# of Units: 4Year Built: 1971

$3,250,000 $812,500 $677 24.40 6/1/182 - 2x1½1 - 2x2

1 - 3x2TH


1702 NorandaSunnyvale# of Units: 3Year Built: 1965

$2,200,000 $733,333 $704 29.47 2/15/181 - 2x1

1 - 2x1½1 - 3x1½


1590 LathamMountain View# of Units: 4Year Built: 1958

$2,591,000 $647,750 $811 20.71 4/17/18 3 - 1x11 - 2x2 House



Location Overview

Santa Clara County (6)

Santa Clara County, most commonly known as the “Silicon Valley”, is home to nearly 1.8 million people, making it the largest of nine Bay Area counties. It is considered as one of the best areas to live and work, and houses many of the nation’s most successful businesses. The County has one of the highest standards of living in the country and is a major employment center for the region, providing 25% of all jobs in the Bay Area. Residents of Santa Clara County are culturally and ethnically diverse, speaking over 100 different languages and dialects. Santa Clara County is home to 3 major universities: Stanford University, Santa Clara University, and San Jose State University, as well as many distinguished community colleges. Residents can spend their free time visiting the Tech Museum of Innovation, Rosicrucian Museum and many more museums and art galleries in the area. Locals can enjoy live sports games and concerts at the SAP Center and Levi’s Stadium. A short hour drive gives residents access to beaches along the Pacific Ocean in Santa Cruz, Half Moon Bay, Monterey and Carmel.

San Francisco Bay Area (1-5)

The San Francisco Bay Area consists of nine counties, 101 cities and comprises over 7,000 square miles. With six different sub-regions, it houses 7.44 million residents, making it the fifth most populous metropolitan area in the United States. It is home to many of the world’s most distinguished and innovative Fortune 500 businesses, such as Salesforce, Netflix, and Cisco.

The workforce is comprised of highly educated individuals, with over 4,111,536 people in the labor force. The San Francisco Bay Area’s diverse region appeals visitors through its iconic attractions, such as the Golden Gate Bridge, Fisherman’s Wharf, and other highlights ranging from amusement parks and museums to beaches and wine countries. In 2014, San Francisco attracted over 18.01 million visitors, increasing the number of jobs supported by tourism by 13.2 percent. Residents of the San Francisco Bay Area can enjoy its great weather, beautiful scenery, and diversity.



Schools for 1601-1605 Villa & 200 Mariposa (12,13)

Location Overview

Grades K-5 Landels Elementary School

Grades 6-8 Graham Middle School

Grades 9-12 Los Altos High School

Nestled between the Santa Cruz Mountains and San Francisco Bay, Mountain View is a diverse community, ideally located in the heart of the Silicon Valley (10 miles north of San Jose and 35 miles south of San Francisco). At just over 12 square miles, the City is home to approximately 75,000 residents, many nationally and internationally known corporations (including Google HQ) and a thriving small business base.

Mountain View prides itself on providing excellent public services and facilities that meet the needs of a caring and diverse community in a financially responsible manner. While leading the region in innovation and ideas, the City remains committed to the traditional values of strong neighbourhoods and citizen involvement. Mountain View boasts strong safety and public education records and is considered one of the best places to live in the Bay Area.

Major Employers (8)

Demographics (9,10,11)

Google Inc. (HQ) 19,711 local employees

LinkedIn 2,018 local employees

Microsoft Corporation 1,668 local employees

Intuit Corporation (HQ) 1,287 local employees

El Camino Hospital 1,273 local employees

Samsung Research America Inc. (HQ)

1,085 local employees

Synopsys, Inc. (HQ) 1,031 local employees

Pure Storage (HQ) 900 local employees

Veritas Technologies (HQ) 801 local employees

City of Mountain View (HQ) 596 local employees

Residential Population 76,260

Average Household Size 2.36

Median Age 34.6

Average Household Income $119,983

Number of Housing Units 34,136

Workers per Household 1.286

Unemployment Rate 3.9%

Land 12.00 square miles

Persons 6,147.7 per square miles

(7)



OFFERING SUMMARY FOOTNOTES & DISCLAIMERS

Current Gross Income Multiplier is based on the current rents shown in the Rent Roll under the “Current” column. These rent levels are subject to change without notice. Gross Scheduled Income used in calculating the GIM includes the Late Check Charge, Other Income and Deposit Forfeit amounts shown in the Proforma Operating Statement. Buyer should review the most recent rent roll and Operating Statement for any changes prior to purchase. Estimated market rent of $2,250/month was assumed for 1605 Villa which is scheduled to vacate 9/30/19. Actual rent achieved for this unit may vary from this amount.

Market Gross Income Multiplier assumes the units are all rented at the “Estimated Market Rent” levels shown in the rent roll. Gross Scheduled Income used in calculating the GIM includes the Late Check Charge, Other Income and Deposit Forfeit amounts shown in the Proforma Operating Statement. Please note that current rents are not all at these levels. These rent levels are not guaranteed to be achievable or sustainable by Seller, Brokers or Agents and Buyer should use rent levels it thinks it can obtain for the subject property.

Current Capitalization Rate is based on income, expenses and vacancy figures shown in the Pro-Forma Operating Statement “Current” column. See Proforma Operating Statement Footnotes and Disclaimers on Page 11 of this Offering Memorandum. Estimated market rent of $2,250/month was assumed for 1605 Villa which is scheduled to vacate 9/30/19. Actual rent achieved for this unit may vary from this amount.

Market Capitalization Rate is based on income, expenses and vacancy figures shown in the Pro-Forma Operating Statement Pro-Forma (Market) column. See Proforma Operating Statement Footnotes and Disclaimers on Page 11 of this Offering Memorandum.

Zoning: This was provided by the City of Mountain View and is not guaranteed as accurate by Seller, Broker or Agents. Buyer should confirm zoning prior to purchase and rely on its own investigation.

Year Built & Lot Size: Data source is LandVision. Seller, Broker and Agents are making no guarantee or representations as to when the improvements were built or the size of the lot. Buyer should conduct its own investigation to determine the age of the improvements and the size of the lot.

Square Footage & Related Price Per SF (Data Source: LandVision and Open Homes Photography): These sizes and calculations are NOT guaranteed as accurate by Brokers, Seller or Agents. Buyer is encouraged to conduct and rely on its own measurements of the units and the improvements.

Mountain View has a rent control law which may affect the amount and timing of any rent increase the Buyer may implement at the property. Buyer should review and understand the effect this rent control law may have on the Buyer’s operation of the property and its rental increases.

Unit Mix/Scheduled Income Footnotes & Disclaimers

Current Rent Column is based on current rents shown in the Rent Roll. These rent levels are subject to change without notice. Buyer should review most recent rent roll prior to purchase. Estimated market rent was assumed for 1605 Villa which is scheduled to vacate on 9/30/19, actual amount achieved for this unit may vary from this amount.

Estimated Market Rents assumes the units are all rented at the “Estimated Market Rent” levels shown in the rent roll. Please note that current rents are not all at these levels. These rent levels are not guaranteed to be achievable or sustainable by Seller, Brokers or Agents and Buyer should use rent levels it thinks it can obtain for the subject property.

Approximate Square Feet (Data Source: Drafter Open Homes Photography): Seller, Brokers and Agents have not measured all the units and are NOT representing or warranting the accuracy of the square footage of the units or the sizes of the individual rooms. Buyer should conduct and rely on its own measurements.


PROPERTY OVERVIEW FOOTNOTES & DISCLAIMERS

Information in this section of the Offering Memorandum were provided to us by the owner or sources we deem reliable but is not guaranteed to be accurate by Brokers, Agents or Seller. Buyer should NOT rely on the accuracy of this information and should verify its accuracy and verify features, improvements, square footage figures and distance to the nearby destinations referenced in this section of the Offering Memorandum, prior to Buyer removing contingencies and purchasing this property.

Aerial Map Disclaimers Location and distances of companies and destinations are approximate. Buyer should verify the accuracy of this information prior to purchase and shall rely on its own investigation.




RENT ROLL FOOTNOTES & DISCLAIMERS

General Notes: Rent levels, occupancy, deposit amounts, move-in date, date of last rent increase and lease expiration dates are subject to change without notice. Move-In dates are subject to change as units turnover. Buyer should obtain updated information and confirm all rent levels, lease terms, move-in dates, amount and date of last rental adjustment and deposit amounts prior to purchase.

Current Rent column reflects current rent at the time this Offering Memorandum was prepared. Estimated market rent of $2,250/month was assumed for 1605 Villa which is scheduled to vacate 9/30/19. Actual rent achieved for this unit may vary from this amount.

Estimated Market Rent column does not reflect current rent levels for all the units. These rent levels are not guaranteed to be achievable or sustainable by Seller, Brokers or Agents. Buyer should use rent levels it thinks it can obtain for the subject property.

Square Footage Column (Data Source: Drafter Open Homes Photography): Square footage shown in Rent Roll are not guaranteed as accurate by Seller, Brokers or Agents. Buyer should measure the apartments prior to purchase and rely on its own measurements.

Additional Notes:


RENT COMPARABLES FOOTNOTES & DISCLAIMERS

Estimated market rent levels shown for the subject property are estimates only and not guaranteed to be achievable or sustainable by Owner, Brokers or Agents. Asking rent for the Rent Comparables was the asking rent at the time this Offering Memorandum was prepared and is subject to chance without notice.

LOCATION OVERVIEW SOURCES & DISCLAIMERS

(1) https://en.wikipedia.org/wiki/San_Francisco_Bay_Area(2) http://www.bayareavision.org/bayarea/(3) http://fortune.com/2015/06/15/states-most-fortune-500-companies/(4) http://www.marineconomicconsulting.com/EmplReports/Regions/Bay_Area.pdf(5) http://www.sanfrancisco.travel/article/record-breaking-economic-impact-2014(6) https://www.sccgov.org/sites/scc/pages/about-the-county.aspx(7) http://www.mountainview.gov/about/default.asp(8) http://www.mountainview.gov/civicax/filebank/blobdload.aspx?BlobID=18256(9) http://www.mountainview.gov/about/learn/demographics.asp(10) http://www.sfrealtors.com/US/Neighborhood/CA/Mountain-View-Demographics.html(11) LandVision

(12) http://locator.decisioninsite.com/?StudyID=187720#(13) http://locator.decisioninsite.com/?StudyID=187720

Buyer should verify the public schools the residents would attend and should rely on its own investigation. Buyer should obtain updated information relating to items referenced in the Location Overview section of this Offering Memorandum and should rely on its own findings.

GENERAL DISCLAIMERS

Note: Building square footage, square footage of improvements, unit square footage and lot size are not guaranteed as accurate. Seller, Brokers and Agents have not measured all units, lot, building or improvements and are making NO representation as to the accuracy of square footage figures. Data source for lot size is LandVision. Buyer should measure all units, lot, improvements and the building prior to purchase and should not rely on any square footage figures provided to them by Brokers, Agents or Seller.

ANY PROSPECTIVE PURCHASER SHALL BE REQUIRED TO CONDUCT ITS OWN INVESTIGATION REGARDING THE ZONING, BUILDING CODE, PERMIT STATUS AND HISTORY OF THE PROPERTY, AND TO RELY SOLELY ON THE RESULTS OF THAT INVESTIGATION.

When analyzing this property. Buyer should use income, vacancy and expense levels that will accurately reflect the manner in which it plans to operate the property. Brokers, Agents and Seller are making no representations or warranties as to the level of income or expenses Buyer will incur at the property.

Mountain View has a rent control law that was passed as Measure V in the November 8, 2016 election. The Rent Control law may affect the amount and timing of any rent increase the Buyer may implement or has implemented at the property. Buyer should review and understand the effect the Mountain View Rent Control law may have on the Buyer’s operation of the property and its rental increases. Should Buyer wish to implement a Utility Bill Back program, Buyer should investigate the impact any Utility Bill Back will have on the allowable rent increase Buyer may implement under the Mountain View Rent Control law.

AT THE TIME THIS OFFERING MEMORANDUM WAS PREPARED THE STATE OF CALIFORNIA WAS IN THE PROCESS OF DECIDING ON IF IT WAS GOING TO IMPLEMENT A STATEWIDE RENT CONTROL LAW AND JUST CAUSE EVICTION LAW. PRIOR TO REMOVAL OF BUYER CONTINGENCIES AND PURCHASE OF THE PROPERTY, BUYER SHOULD INVESTIGATE THE STATUS OF WHETHER THESE LAWS PASSED AND IF SO THE IMPACT SUCH LAW(S) WOULD HAVE ON THE AMOUNT AND TIMING OF ANY RENT INCREASE AND THEIR IMPACT ON THE BUYERS OPERATION AND INTENDED USE OF THE PROPERTY.




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NEWMARK KNIGHT FRANK 245 Lytton Avenue Suite 150Palo Alto, CA 94301650.322.2600 • Fax: 650.321.0719

KEITH SUDDJIANExecutive Managing DirectorD: 650.688.8514C: [email protected] RE License #00673961

MICHELLE CLARKSenior Managing DirectorD: 650.688.8515C: [email protected] RE License #01918902

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1601-1605 Villa Street 200 Mariposa Avenue...Michelle Clark Senior Managing Director 650.688.8515 [email protected] CA RE License #01918902 Newmark Knight Frank 245 Lytton Avenue