Bertini Court Fourplex - Amazon S3...Bertini Court Fourplex Unit Mix Report 3796 Bertini Ct San Jose, CA 95117 Michael Shields, CCIM, CCRM 408-354-7470 UNIT MIXES Units Type Approx

For more information contact:

Bertini Court Fourplex3796 Bertini CtSan Jose, CA 95117

Michael Shields, CCIM, CCRM

Apartment / Investment Broker

408-354-7470

[email protected]

Lic. 01327546

Erik Nielsen

Apartment Agent

831-297-0461

[email protected]

Lic. 01907679

Phone: 408-354-7470 ● Fax: 866-354-7420 ● 900 E. Hamilton Ave., Suite 100 ● Campbell, CA 95008 ● www.siliconvalleymultifamily.com

List Price $1,295,000Recently Renovated. Well Maintained. Fully Rented.

●

Unit Mix: (1) 3/2 w/fireplace & patio (~1550 sf), (2) 2/1.5 (~945 & 960 sf),& (1) 1/1 (~515 sf) - completely renovated

●

Many Amenities: Private Garages, Onsite Laundry. Patios or balconies.A/C each Unit. Forced Air Heat Units 1,2,3.

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Located on a small, cobblestone covered cul-de-sac, with Similar High-End Fourplexes. Residential area look & feel.

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Close Proximity to Santana Row, Valley Fair Mall, Employment Centers,Shopping, Entertainment and commuter routes.

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Table of Contents

SECTION 1 - PROPERTY OVERVIEW

SECTION 2 - FINANCIAL ANALYSIS

SECTION 3 - COMPARABLES

SECTION 4 - DEMOGRAPHICS

Property OverviewBertini Court Fourplex3796 Bertini CtSan Jose, CA 95117

Real Estate Investment Details

ANALYSIS

Analysis Date February 2014

PROPERTY

Property Bertini Court Fourplex

Property Address 3796 Bertini CtSan Jose, CA 95117

Year Built 1976

FINANCIAL INFORMATION

Down Payment $625,000

Closing Costs $2,500

LT Capital Gain 20.00%

Federal Tax Rate 34.0%

State Tax Rate 9.4%

Discount Rate 3.00%

PURCHASE INFORMATION

Property Type MultiFamily

Purchase Price $1,295,000

Fair Market Value $1,295,000

Units 4

Total Rentable Sq. Ft. 4,058

Resale Valuation 3.0% (annual appreciation)

Resale Expenses 6.0%

LOANS

Debt Term Amortization Rate Payment LO Costs

Fixed $625,000 30 years 30 years 4.0% $2,984 $6,250

INCOME & EXPENSES

Gross Operating Income $62,892

Monthly GOI $5,241

Total Annual Expenses ($24,859)

Monthly Expenses ($2,072)

CONTACT INFORMATION

Michael Shields, CCIM, CCRM

408-354-7470

[email protected]

Lic. 01327546

Erik Nielsen

831-297-0461

[email protected]

Lic. 01907679

The calculations and data presented are deemed to be accurate, but not guaranteed. They are intended for the purpose of illustrative projectionsand analysis. The information provided is not intended to replace or serve as substitute for any legal, accounting, investment, real estate, tax orother professional advice, consultation or service. The user of this software should consult with a professional in the respective legal, accounting,tax or other professional area before making any decisions.

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Executive SummaryBertini Court Fourplex

3796 Bertini CtSan Jose, CA 95117

Michael Shields, CCIM, CCRM408-354-7470

ACQUISITION COSTS

Purchase Price, Points and Closing Costs $1,303,750

Investment - Cash $633,750

First Loan $625,000

INVESTMENT INFORMATION

Purchase Price $1,295,000

Price per Unit $323,750

Price per Sq. Ft. $319.12

Income per Unit $16,200

Expenses per Unit ($6,215)

INCOME, EXPENSES & CASH FLOW

Gross Scheduled Income $64,800

Total Vacancy and Credits ($1,908)

Operating Expenses ($24,859)

Net Operating Income $38,033

Debt Service ($35,806)

Cash Flow Before Taxes $2,227

Total Interest (Debt Service) ($24,800)

Depreciation and Amortization ($23,715)

Taxable Income (Loss) ($10,482)

Tax Savings (Costs) $4,549

Cash Flow After Taxes $6,776

FINANCIAL INDICATORS

Cash on Cash Return Before Taxes 0.35%

Optimal Internal Rate of Return (yr 10) 6.55%

Debt Coverage Ratio 1.06

Capitalization Rate 2.94%

Gross Rent Multiplier 20.36

Gross Income / Square Feet $15.97

Gross Expenses / Square Feet ($6.13)

Operating Expense Ratio 39.53%

page 5 of 28

The information and calculations presented are deemed to be accurate, but not guaranteed and we are not responsible for its correctness.

Property DescriptionBertini Court Fourplex



Large Fourplex w/Owner's Unit Near Santana RowUnit Mix: (1) 3/2 Unit; (2) 2/1.5 units; (1) 1/1 unit

This large, well located fourplex is ideal forinvestors or as an owner-occupied property. Theunique unit mix generates high income or can beused as a primary residence. It has an excellentunit mix: One (1) 3-bedroom / 2-bath unit (~1515sf) with a fireplace and patio, Two (2) 2-bedroom/ 1.5-bath units (~960 & ~945 sf) each with apatio, and one (1) 1-bedroom 1-bath unit (~515sf) with a patio. The 3-bedroom unit is very largeand contains a fireplace. There are 5 privategarage spaces and an onsite laundry room withowned equipment. All units are fully rented.Current Annual Income is $63,600. Theopportunity exists for rents to be raised to market levels (within Rent control guidelines), therebyincreasing income to $83,400. The building is 4,058 SF, large units, sitting on a large, 10,150 sf lot.

Due to a fire in 2010 the building has undergone substantial renovations totaling more than$300,000. The one bedroom has been completely renovated and the 2-bedroom units have beenpartially renovated. The building has been brought up to current building codes and the roof wasreplaced approximately 8 years ago. The building consists of a wood frame structure with a stuccoexterior and concrete perimeter foundation and composition shingle roof. The driveway is asphalt,and the cul-de-sac leading to the building is uniquely red cobblestone, giving this a very residentialfeel.

Tenants pay individual utilities including electric, gas for hot water and heating, phone & cable.Owner pays taxes, insurance, maintenance, trash removal, water & sewer, and common areautilities including exterior lights and laundry room, all of which is common for properties of this type.

This fourplex is located in a highly desirable rental area of San Jose due its proximity to SantanaRow (1.5 miles) and Valley Fair Mall. It is ideally situation near many large employers, shopping,entertainment, and commuter routes.

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Property PhotosBertini Court Fourplex



Property Photos

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Bertini Court Fourplex




Property Photos 2

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Unit Mix ReportBertini Court Fourplex



UNIT MIXES

Units Type Approx. SqFt Avg. Rents Monthly Mkt Rents Monthly1 3 Bedr / 2 Bath 1550 $1,800 $1,800 $2,250 $2,2501 2 Bed / 1.5 Bath 960 $1,200 $1,200 $1,700 $1,7001 2 Bed / 1.5 Bath 945 $1,350 $1,350 $1,700 $1,7001 1 Bed / 1 Bath 515 $950 $950 $1,300 $1,3004 3,970 $5,300 $6,950

UNIT MIX UNIT MIX SQUARE FEET

● 3 Bedr / 2 Bath

● 2 Bed / 1.5 Bath

● 2 Bed / 1.5 Bath

● 1 Bed / 1 Bath

● 3 Bedr / 2 Bath

● 2 Bed / 1.5 Bath

● 2 Bed / 1.5 Bath

● 1 Bed / 1 Bath

UNIT MIX INCOME UNIT MIX MARKET INCOME

● 3 Bedr / 2 Bath

● 2 Bed / 1.5 Bath

● 2 Bed / 1.5 Bath

● 1 Bed / 1 Bath

● 3 Bedr / 2 Bath

● 2 Bed / 1.5 Bath

● 2 Bed / 1.5 Bath

● 1 Bed / 1 Bath

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Maps and AerialsBertini Court Fourplex



Neighborhood and Regional Maps

Neighborhood Map

Regional Map

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Maps and AerialsBertini Court Fourplex



Aerial & Parcel Maps

Aerial Map

Parcel Map

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Financial AnalysisBertini Court Fourplex3796 Bertini CtSan Jose, CA 95117

Annual Property Operating DataBertini Court Fourplex



Description Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

Rental Income $63,600 $66,780 $70,119 $73,625 $77,306 $81,172 $85,230 $89,492 $93,966 $98,664

Miscellaneous Income $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200

GROSS SCHEDULED INCOME $64,800 $67,980 $71,319 $74,825 $78,506 $82,372 $86,430 $90,692 $95,166 $99,864

General Vacancy ($1,908) ($2,003) ($2,104) ($2,209) ($2,319) ($2,435) ($2,557) ($2,685) ($2,819) ($2,960)

GROSS OPERATING INCOME $62,892 $65,977 $69,215 $72,616 $76,187 $79,936 $83,873 $88,007 $92,347 $96,905

Expenses

Property Taxes ($15,625) ($15,781) ($15,939) ($16,098) ($16,259) ($16,422) ($16,586) ($16,752) ($16,920) ($17,089)

Insurance ($3,278) ($3,376) ($3,478) ($3,582) ($3,689) ($3,800) ($3,914) ($4,032) ($4,152) ($4,277)

Utilities - Gas & Electric ($1,097) ($1,130) ($1,164) ($1,199) ($1,235) ($1,272) ($1,310) ($1,349) ($1,390) ($1,431)

Utilities - Water & Sewer ($2,009) ($2,069) ($2,131) ($2,195) ($2,261) ($2,329) ($2,399) ($2,471) ($2,545) ($2,621)

Trash Removal ($1,091) ($1,124) ($1,157) ($1,192) ($1,228) ($1,265) ($1,303) ($1,342) ($1,382) ($1,424)

Landscaping ($840) ($865) ($891) ($918) ($945) ($974) ($1,003) ($1,033) ($1,064) ($1,096)

SJ City Business Tax ($150) ($155) ($159) ($164) ($169) ($174) ($179) ($184) ($190) ($196)

Fire Exting. /City Permit fees ($169) ($174) ($179) ($185) ($190) ($196) ($202) ($208) ($214) ($221)

Maintenance ($600) ($600) ($600) ($600) ($600) ($600) ($600) ($600) ($600) ($600)

TOTAL OPERATING EXPENSES ($24,859) ($25,274) ($25,699) ($26,133) ($26,577) ($27,031) ($27,496) ($27,971) ($28,457) ($28,954)

NET OPERATING INCOME $38,033 $40,702 $43,517 $46,483 $49,610 $52,905 $56,377 $60,036 $63,890 $67,950

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Cash Flow AnalysisBertini Court Fourplex




GROSS SCHEDULED INCOME $64,800 $67,980 $71,319 $74,825 $78,506 $82,372 $86,430 $90,692 $95,166 $99,864

General Vacancy ($1,908) ($2,003) ($2,104) ($2,209) ($2,319) ($2,435) ($2,557) ($2,685) ($2,819) ($2,960)

Total Operating Expenses ($24,859) ($25,274) ($25,699) ($26,133) ($26,577) ($27,031) ($27,496) ($27,971) ($28,457) ($28,954)


Loan Payment ($35,806) ($35,806) ($35,806) ($35,806) ($35,806) ($35,806) ($35,806) ($35,806) ($35,806) ($35,806)

NET CASH FLOW (b/t) $2,227 $4,896 $7,710 $10,677 $13,804 $17,099 $20,571 $24,230 $28,084 $32,144

Cash On Cash Return b/t 0.35% 0.77% 1.22% 1.68% 2.18% 2.70% 3.25% 3.82% 4.43% 5.07%


Depreciation ($23,507) ($24,532) ($24,532) ($24,532) ($24,532) ($24,532) ($24,532) ($24,532) ($24,532) ($23,509)

Amortization ($208) ($208) ($208) ($208) ($208) ($208) ($208) ($208) ($208) ($208)

Loan Interest ($24,800) ($24,351) ($23,885) ($23,399) ($22,893) ($22,367) ($21,820) ($21,250) ($20,657) ($20,040)

TAXABLE INCOME (LOSS) ($10,482) ($8,389) ($5,108) ($1,656) $1,976 $5,797 $9,817 $14,046 $18,493 $24,194

Income Taxes $4,549 $3,641 $2,217 $719 ($858) ($2,516) ($4,261) ($6,096) ($8,026) ($10,500)

CASH FLOW (a/t) $6,776 $8,537 $9,927 $11,396 $12,946 $14,583 $16,311 $18,134 $20,058 $21,644

Cash On Cash Return a/t 1.07% 1.35% 1.57% 1.80% 2.04% 2.30% 2.57% 2.86% 3.16% 3.42%

Footnotes: b/t = before taxes;a/t = after taxes

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Financial IndicatorsBertini Court Fourplex




Gross Rent Multiplier 20.97 20.57 20.18 19.80 19.42 19.05 18.69 18.33 17.98 17.64

Capitalization Rate 2.94% 3.14% 3.36% 3.59% 3.83% 4.09% 4.35% 4.64% 4.93% 5.25%

Cash On Cash Return b/t 0.35% 0.77% 1.22% 1.68% 2.18% 2.70% 3.25% 3.82% 4.43% 5.07%

Cash On Cash Return a/t 1.07% 1.35% 1.57% 1.80% 2.04% 2.30% 2.57% 2.86% 3.16% 3.42%

Debt Coverage Ratio 1.06 1.14 1.22 1.30 1.39 1.48 1.57 1.68 1.78 1.90

Gross Income per Sq. Ft. $15.97 $16.75 $17.57 $18.44 $19.35 $20.30 $21.30 $22.35 $23.45 $24.61

Expenses per Sq. Ft. ($6.13) ($6.23) ($6.33) ($6.44) ($6.55) ($6.66) ($6.78) ($6.89) ($7.01) ($7.14)

Net Income Multiplier 35.07 33.75 32.52 31.36 30.26 29.23 28.25 27.32 26.45 25.61

Operating Expense Ratio 39.53% 38.31% 37.13% 35.99% 34.88% 33.82% 32.78% 31.78% 30.82% 29.88%

Loan To Value Ratio 46.03% 43.86% 41.74% 39.67% 37.65% 35.69% 33.77% 31.90% 30.07% 28.29%

Footnotes: b/t = before taxes; a/t = after taxes

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Loan AnalysisBertini Court Fourplex




LOAN 1

Debt Service Analysis

Principal Payments $11,006 $11,455 $11,922 $12,407 $12,913 $13,439 $13,986 $14,556 $15,149 $15,766

Interest Payments $24,800 $24,351 $23,885 $23,399 $22,893 $22,367 $21,820 $21,250 $20,657 $20,040

Total Debt Service $35,806 $35,806 $35,806 $35,806 $35,806 $35,806 $35,806 $35,806 $35,806 $35,806

Principal Balance Analysis

Beginning Principal Balance $625,000 $613,994 $602,539 $590,617 $578,210 $565,297 $551,858 $537,872 $523,315 $508,166

Principal Reductions $11,006 $11,455 $11,922 $12,407 $12,913 $13,439 $13,986 $14,556 $15,149 $15,766

Ending Principal Balance $613,994 $602,539 $590,617 $578,210 $565,297 $551,858 $537,872 $523,315 $508,166 $492,400

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Pro Forma SummaryBertini Court Fourplex



INCOME

Actual Per Unit Market Per Unit

Gross Potential Rent $63,600 $15,900 $83,400 $20,850

Less: Vacancy ($1,908) ($477) ($2,502) ($626)

Misc. Income $1,200 $300 $1,200 $300

Effective Gross Income $62,892 $15,723 $82,098 $20,525

OPERATING EXPENSES

Actual Per Unit Market Per Unit

Property Taxes $15,625 $3,906 $15,625 $3,906

Insurance $3,278 $820 $3,278 $820

Utilities - Gas & Electric $1,097 $274 $1,097 $274

Utilities - Water & Sewer $2,009 $502 $2,009 $502

Trash Removal $1,091 $273 $1,091 $273

Landscaping $840 $210 $840 $210

SJ City Business Tax $150 $38 $150 $38

Fire Exting. /City Permit fees $169 $42 $169 $42

Maintenance $600 $150 $600 $150

Total Expenses ($24,859) ($6,215) ($24,859) ($6,215)

Net Operating Income $38,033 $9,508 $57,239 $14,310

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Pro Forma SummaryBertini Court Fourplex



UNIT MIX & ANNUAL SCHEDULED INCOME

Type Units Actual Total Market Total

3 Bedr / 2 Bath 1 $21,600 $21,600 $27,000 $27,000

2 Bed / 1.5 Bath 1 $14,400 $14,400 $20,400 $20,400

2 Bed / 1.5 Bath 1 $16,200 $16,200 $20,400 $20,400

1 Bed / 1 Bath 1 $11,400 $11,400 $15,600 $15,600

TOTALS 4 $63,600 $83,400

ANNUALIZED INCOMEActual Market

Gross Potential Rent $63,600 $83,400

Less: Vacancy ($1,908) ($2,502)

Misc. Income $1,200 $1,200

Effective Gross Income $62,892 $82,098

Less: Expenses ($24,859) ($24,859)

Net Operating Income $38,033 $57,239

Debt Service ($35,806) ($35,806)

Net Cash Flow after Debt Service $2,227 $21,433

Principal Reduction $11,006 $11,006

Total Return $13,233 $32,439

ANNUALIZED EXPENSES

Actual MarketProperty Taxes $15,625 $15,625

Insurance $3,278 $3,278

Utilities - Gas & Electric $1,097 $1,097

Utilities - Water & Sewer $2,009 $2,009

Trash Removal $1,091 $1,091

Landscaping $840 $840

SJ City Business Tax $150 $150

Fire Exting. /City Permit fees $169 $169

Maintenance $600 $600

Total Expenses $24,859 $24,859

Expenses Per RSF $6.13 $6.13

Expenses Per Unit $6,215 $6,215

INVESTMENT SUMMARY

Price: $1,295,000

Year Built: 1976

Units: 4

Price/Unit: $323,750

RSF: 4,058

Price/RSF: $319.12

Lot Size: 10,150 sf

Floors: 2

Parking Spaces: 2/unit

APN: 299-38-089

Cap Rate: 2.94%

Market Cap Rate: 4.42%

GRM: 20.36

Market GRM: 15.53

FINANCING SUMMARY

Loan Amount: $625,000

Down Payment: $625,000

Loan Type: Fixed

Interest Rate: 4%

Term: 30 years

Monthly Payment: $2,984

DCR: 1.06

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ComparablesBertini Court Fourplex3796 Bertini CtSan Jose, CA 95117

Sales ComparablesBertini Court Fourplex



Subject 1 2 3

1%

2%

3%

4%

5%

6%

7%

8%

Avg.

4.293

Cap Rate

Subject 1 2 3

3.0

6.0

9.0

12.0

15.0

18.0

21.0

24.0

Avg.

16.067

Gross Rent Multiplier

Subject 1 2 3

$41,000

$82,000

$123,000

$164,000

$205,000

$246,000

$287,000

$328,000Avg.

$302,854

Price per Unit

Subject 1 2 3

$43

$86

$129

$172

$215

$258

$301

$344

Avg.

$306.94

Price per Sq. Ft.

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S Bertini Court Fourplex3796 Bertini CtSan Jose, CA 95117

Sale Price $1,295,000

Units 4

Price/Unit $323,750

Price/SqFt $319.12

Cap Rate 2.94%

Year Built 1976

GRM 19.98

# Units Unit Type

1 3 Bedr / 2 Bath

1 2 Bed / 1.5 Bath

1 2 Bed / 1.5 Bath

1 1 Bed / 1 Bath

NOTESUnit Mix:(1) 3/2 Unit w/fireplace(2) 2/1.5 units

1 Fourplex on Moorpark3844 Moorpark AveSan Jose, CA 95117


Units 4

Price/Unit $299,750

Price/SqFt $295.47

Cap Rate 4.5%

Year Built 1970Sale Date 10/1/2013

GRM 16.7

# Units Unit Type

1 Three Bedroom Two Bath

2 Two Bedroom Two Bath

1 One Bedroom One Bath

NOTESIdentical Unit Mix. Similar property, near subject.

2 Fourplex 1307 Saratoga Ave1307 Saratoga AveSan Jose, CA


Units 4

Price/Unit $302,500

Price/SqFt $286.53

Cap Rate 4.8%


GRM 14.0

# Units Unit Type


2 Two Bedroom One Bath

1 One Bedroom One Bath

NOTESUnit Mix:(1) 3/2 remodeled(2) 2/1.5 units

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3 San Jose Fourplex on Auburn405 Auburn WaySan Jose, CA 95129


Units 4

Price/Unit $306,313

Price/SqFt $338.84

Cap Rate 3.58%


GRM 17.5

# Units Unit Type


3 Two Bedroom One Bath

NOTESSimilar Unit mix & size.

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1 3796 Bertini Ct, San Jose, CA 95117 ($1,295,000)

A 3844 Moorpark Ave, San Jose, CA 95117 ($1,199,000)

B 1307 Saratoga Ave, San Jose, CA ($1,210,000)

C 405 Auburn Way, San Jose, CA 95129 ($1,225,250)

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DemographicsBertini Court Fourplex3796 Bertini CtSan Jose, CA 95117

Executive Summary3796 Bertini Ct, San Jose, CA, 95117 Prepared by Michael ShieldsRings: 0.5, 1, 2 mile radii Latitude: 37.315430841

Longitude: -121.9678191

0.5 miles 1 mile 2 milesPopulation

2000 Population 8,907 33,381 114,004

2010 Population 9,463 34,710 117,860

2013 Population 9,384 34,794 119,744

2018 Population 9,563 35,807 125,054

2000-2010 Annual Rate 0.61% 0.39% 0.33%

2010-2013 Annual Rate -0.26% 0.07% 0.49%

2013-2018 Annual Rate 0.38% 0.58% 0.87%2013 Male Population 51.4% 50.3% 50.0%2013 Female Population 48.6% 49.7% 50.0%2013 Median Age 33.8 34.7 36.8

In the identified area, the current year population is 119,744. In 2010, the Census count in the area was 117,860. The rate of change since2010 was 0.49% annually. The five-year projection for the population in the area is 125,054 representing a change of 0.87% annually from2013 to 2018. Currently, the population is 50.0% male and 50.0% female.

Median Age

The median age in this area is 36.8, compared to U.S. median age of 37.3.

Race and Ethnicity2013 White Alone 45.1% 44.6% 50.1%

2013 Black Alone 5.7% 4.4% 3.7%2013 American Indian/Alaska Native Alone 0.9% 0.8% 0.7%2013 Asian Alone 27.7% 32.3% 29.7%2013 Pacific Islander Alone 1.3% 0.7% 0.5%2013 Other Race 13.3% 11.9% 10.0%2013 Two or More Races 6.0% 5.3% 5.4%2013 Hispanic Origin (Any Race) 28.6% 24.6% 23.0%

Persons of Hispanic origin represent 23.0% of the population in the identified area compared to 17.4% of the U.S. population. Persons ofHispanic Origin may be of any race. The Diversity Index, which measures the probability that two people from the same area will be fromdifferent race/ethnic groups, is 78.0 in the identified area, compared to 62.1 for the U.S. as a whole.

Households

2000 Households 3,829 13,245 44,5252010 Households 4,043 13,548 45,1502013 Total Households 4,025 13,592 45,8272018 Total Households 4,119 14,006 47,8502000-2010 Annual Rate 0.55% 0.23% 0.14%2010-2013 Annual Rate -0.14% 0.10% 0.46%2013-2018 Annual Rate 0.46% 0.60% 0.87%2013 Average Household Size 2.32 2.55 2.59

The household count in this area has changed from 45,150 in 2010 to 45,827 in the current year, a change of 0.46% annually. The five-yearprojection of households is 47,850, a change of 0.87% annually from the current year total. Average household size is currently 2.59,compared to 2.59 in the year 2010. The number of families in the current year is 29,711 in the specified area.

December 05, 2013

©2013 Esri Page 1 of 2

Data Note: Income is expressed in current dollarsSource: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2013 and 2018. Esri converted Census 2000 data into 2010 geography.

Executive Summary3796 Bertini Ct, San Jose, CA, 95117 Prepared by Michael ShieldsRings: 0.5, 1, 2 mile radii Latitude: 37.315430841

Longitude: -121.9678191

0.5 miles 1 mile 2 milesMedian Household Income

2013 Median Household Income $55,993 $69,608 $73,0402018 Median Household Income $63,876 $82,573 $86,6482013-2018 Annual Rate 2.67% 3.48% 3.48%

Average Household Income

2013 Average Household Income $76,278 $92,107 $97,3252018 Average Household Income $87,244 $108,463 $114,6842013-2018 Annual Rate 2.72% 3.32% 3.34%

Per Capita Income

2013 Per Capita Income $32,599 $35,957 $37,3592018 Per Capita Income $37,384 $42,377 $43,9792013-2018 Annual Rate 2.78% 3.34% 3.32%

Households by Income

Current median household income is $73,040 in the area, compared to $51,314 for all U.S. households. Median household income isprojected to be $86,648 in five years, compared to $59,580 for all U.S. households

Current average household income is $97,325 in this area, compared to $71,842 for all U.S households. Average household income isprojected to be $114,684 in five years, compared to $83,667 for all U.S. households

Current per capita income is $37,359 in the area, compared to the U.S. per capita income of $27,567. The per capita income is projected tobe $43,979 in five years, compared to $32,073 for all U.S. households Housing

2000 Total Housing Units 4,105 13,713 45,4582000 Owner Occupied Housing Units 931 4,864 20,2682000 Owner Occupied Housing Units 2,898 8,381 24,2572000 Vacant Housing Units 276 468 933

2010 Total Housing Units 4,221 14,118 47,0782010 Owner Occupied Housing Units 903 4,923 20,6612010 Renter Occupied Housing Units 3,140 8,625 24,4892010 Vacant Housing Units 178 570 1,928



Currently, 42.4% of the 47,669 housing units in the area are owner occupied; 53.8%, renter occupied; and 3.9% are vacant. Currently, inthe U.S., 56.4% of the housing units in the area are owner occupied; 32.3% are renter occupied; and 11.3% are vacant. In 2010, therewere 47,078 housing units in the area - 43.9% owner occupied, 52.0% renter occupied, and 4.1% vacant. The annual rate of change inhousing units since 2010 is 0.56%. Median home value in the area is $561,530, compared to a median home value of $177,257 for the U.S.In five years, median value is projected to change by 4.02% annually to $683,878.

December 05, 2013

©2013 Esri Page 2 of 2

Data Note: Income is expressed in current dollarsSource: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2013 and 2018. Esri converted Census 2000 data into 2010 geography.





DISCLAIMER All materials and information received or derived from Silicon Valley Multifamily Group its directors, officers, agents, advisors, affiliates, and/or any third party sources are provided without representation or warranty as to completeness, veracity, or accuracy, condition of the property, compliance or lack of compliance with applicable governmental requirements, developability or suitability, financial performance of the property, projected financial performance of the property for any party’s intended use or any and all other matters. Neither Silicon Valley Multifamily Group its directors, officers, agents, advisors, or affiliates makes any representation or warranty, express or implied, as to accuracy or completeness of the any materials or information provided, derived, or received. Materials and information from any source, whether written or verbal, that may be furnished for review are not a substitute for a party’s active conduct of its own due diligence to determine these and other matters of significant chance to such party. Silicon Valley Multifamily Group will not investigate or verify any such matters or conduct due diligence for a party unless otherwise agreed in writing. Seller desires to sell the property in "its present as is condition" subject to inspection reports. EACH PARTY SHALL CONDUCT ITS OWN INDEPENDENT INVESTIGATION AND DUE DILIGENCE.

Any party contemplating or under contract or in escrow for a transaction is urged to verify all information and to conduct their own inspections and investigations including through appropriate third party independent professionals selected by such party. All financial data should be verified by the party including by obtaining and reading applicable documents and reports and consulting appropriate independent professionals. Silicon Valley Multifamily Group makes no warranties and/or representations regarding the veracity, completeness, or relevance of any financial data or assumptions. Silicon Valley Multifamily Group does not serve as a financial advisor to any party regarding any proposed transaction. 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. Broker, Agent and Seller are making no representations or warranties as to the level of income or expenses Buyer will incur at the property. Building square footage, unit square footage and lot sizes are not guaranteed. Broker, Agent and Seller have not measured all units, lot or the building and are making NO representation as to the accuracy of square footage figures. Data source for building and lot size is FastWeb. Buyer should measure all units, lot and the building prior to purchase and should not rely on any square footage figures provided by Broker, Agent or Seller. All data and assumptions regarding financial performance, including that used for financial modeling purposes, may differ from actual data or performance. Any estimates of market rents and/or projected rents that may be provided to a party do not necessarily mean that rents can be established at or increased to that level. Parties must evaluate any applicable contractual and governmental limitations as well as market conditions, vacancy factors and other issues in order to determine rents from or for the property. Legal questions should be discussed by the party with an attorney. Tax questions should be discussed by the party with a certified public accountant or tax attorney. Title questions should be discussed by the party with a title officer or attorney. Questions regarding the condition of the property and whether the property complies with applicable governmental requirements should be discussed by the party with appropriate engineers, architects, contractors, other consultants and governmental agencies. • Do Not Disturb -- Please respect the Seller's request that the tenants not be disturbed. All offers are to be written subject to inspection. The Seller will provide access for the Buyer to inspect the interiors of all units within a reasonable period following a fully executed purchase contract. Seller requests that all inspections be made on the same day. • Representation -- This information is given with the understanding that all negotiations relating to the purchase of the property described herein shall be conducted through Silicon Valley Multifamily Group. All properties and services are marketed by Silicon Valley Multifamily Group in compliance with all applicable fair housing and equal opportunity laws.

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OFFERING MEMORANDUM NOTES Gross Annual Scheduled Income & the Gross Rent Multiplier are based on current rents shown in the Rent Roll.

These rent levels are current rent levels at the time this package was prepared and subject to change without notice. Buyer should review most recent rent roll prior to purchase. The laundry income was based on 2011 actual levels. Gross Annual Scheduled Income & Gross Income Multiplier (Market or Pro Forma) assumes the units are all

rented at the rent levels shown in the Pro Form Summary. These rent levels are not guaranteed to be achievable by Seller, Broker or Agent. Buyer should use rent levels it thinks it can obtain for the subject property. The laundry income was based on the actual 2011 laundry income reported by the owner. Capitalization Rate is based on rents, expenses and vacancy figures shown in the Operating Statement. Pro Forma Capitalization Rate is based on rents, expenses and vacancy figures shown in the Pro-Forma Operating

Statement Pro-Forma (Market) column. See Pro Forma Operating Statement Footnotes and Disclaimers in this section of the Offering Memorandum. Year Built: Data source is through Chicago Title Company. Seller, Broker and Agent are making no guarantee or

representations as to when the improvements were built. Buyer should conduct its own investigation to determine age of improvements.

UNIT MIX/SCHEDULED INCOME OVERVIEW FOOTNOTES

Current Rent Column is based on current rents shown in the Rent Roll. These rent levels are current rent levels at

the time this package was prepared and subject to change without notice. Buyer should review most recent rent roll prior to purchase. Pro Forma or 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 at these levels. Pro Forma rent levels are not guaranteed to be achievable by Seller, Broker or Agent. Buyer should use rent levels it thinks it can obtain for the subject property. Purchase Information on page 4 including Fair Market Value, Resale Valuation and Resale Expenses are provided

for illustrative purposes only and will vary depending on market conditions and other factors. Silicon Valley Multifamily Group, its Brokers and Agents can not be held accountable for these numbers. Buyer should use the numbers it thinks most appropriate. Financial Information on page 4 including Down Payment, Closing Costs, LT Capital Gain, Federal and State Tax

Rates and the Discount Rate are provided for illustrative purposes only. Actual numbers may, and probably will, vary depending on the Buyer’s individual situation. Loans on page 4. This information is provided for illustrative purposes only. Buyer should use the loan information it

thinks attainable and realistic for the property. Annual Property Operating Data Notes and Disclaimers

Rental Income is based on current rents shown in the Rent Roll Miscellaneous income is based upon information provided by the owner or manager. General Vacancy is estimated to be at current market levels or provided by owner. Taxes are estimated based on list price and based on 2011/2012 tax rate reported by Santa Clara County. Other Expenses All other expenses are as reported by owner or property manager. Loan Payment is based upon information provided in the LOANS section of page 4. Buyer should use the loan information it thinks attainable and realistic for the property. Income Taxes is based upon a 33% or greater tax rate and is provided for illustrative purposes only. Buyer should consult with a licensed tax professional in determining the most realistic and appropriate tax rate. NOTE: THE 10 YEAR PROJECTIONS ARE PROVIDED FOR ILLUSTRATIVE PURPOSES ONLY. BUYER SHOULD USE THE PROJECTIONS IT THINKS ARE REALISTIC AND ATTAINABLE.

Rent Roll Notes

General Notes: Rent levels, occupancy, deposit amounts and terms 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 of last rental adjustment and deposit amounts prior to purchase. Market Rent column does not reflect current rent levels. These rent levels are not guaranteed to be achievable by

Seller, Broker or Agents. Buyer should use rent levels it thinks it can obtain for the subject property.

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Documents

Bertini Court Fourplex - Amazon S3...Bertini Court Fourplex Unit Mix Report 3796 Bertini Ct San Jose, CA 95117 Michael Shields, CCIM, CCRM 408-354-7470 UNIT MIXES Units Type Approx