Los Arboles Apartments

81860 Shadow Palm Avenue Indio, CA 92201

Olivia Zhao Executive Vice President Commercial Investment I Asia Pacific Division 626-625-3534 Celli 323-201-3638 Direct 323-201-3800 Office 1626-270-6660 Fax License#:01202896

NAI Capital Commercial Real Estate Services. Worldwide.

PROPERTY DESCRIPTION

Property Description

The Los Arboles Apartments is a 100-unit luxury multifamily complex located in Indio, California. The complex is situated on a 4.78-acre parcel and is comprised of one-bedroom I one-bath, two-bedroom I one-bath, and two-bedroom I two-bath units that range in size between 660 and 960 SF. Built in 197 4, the complex contains 8, two-sto­ry, walk-up residential buildings. Improve­ments are made of wood frame construction and stucco exteriors. The roofs are a mixture of flat composition shingle as well as pitched concrete tiles. There are approximately 100 Car Ports and 20 open parking spots within the complex; providing a parking ratio of 1.2 spaces per unit.

Los Arboles features well-equipped kitchens that include dishwashers, electric ranges/ov­ens, and garbage disposals. All units feature central heating/ air conditioning, ceiling fans, and private patios/balconies. Additionally, units feature plush carpeting in the living areas and vinyl flooring in the kitchen and bath areas. All units are individually metered for gas and electricity.

Los Arboles offers its residents the finest in common area amenities. A professional leas­ing office is well-positioned near the entrance at the center of the property. There are two sparkling swimming pools and one spa. The property also features a barbecue area and winding walkways with well-manicured land­scaping.

Los Arboles Apartments

Property Name: Los Arboles Apartments

Property Type: Multifamily

Address: 81860 Shadow Palm Ave.

City: Los Arboles

State: California

Zip Code: 92201

County: Riverside

MSA: Riverside CA

Ownership Interest: Fee Simple

Number of Units: 100

Land Area (acres): 4.78

APN: 608192003

Year Built: 1974

Number of Buildings: 8

Number of Stories: 2

Occupancy I As of: 85%- 10/31/2013

No warranty, express or implied, is made as to the accuracy of the information contained herein. This information is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and is subject to any special listing conditions imposed by our principals. Cooperating brokers, buyers, tenants and other parties who receive this document should not rely on it, but should use it as a starting point of analysis, and should independently confirm the accuracy of the information contained herein through a due diligence review of the books, records, files and documents that constitute reliable sources of the information described herein.

Property Address: 81860 Shadow Palm Avenue

Summarl{ Current Rents I Market Rents Proposed Financing Price: $7,200,000 First Loan Amount: $4,000,000

Down Payment: 42% $3,024,000 Interest Rate: 3.97%

Number of Units: 100

Cost per Unit: $72,000 Buyer has to assume existing loan

Current GAM: 8.39 7.52 Fixed Rate Due in 8 yrs.

Current CAP: 6.0% 7.8% 30 yr Amortization

Year Built I Age: 1974

Approx. Lot Size: 206,474

Approx. Net RSF: 82,350

Cost per Net RSF: $87

Annualized Operating Data

Current Rents Market Rents Scheduled Gross Income: $857,400 $917,400

Vacancy Rate Reserve: ($85,740) 10.0% -$36,696 4.0%

Gross Operating Income: $771 ,660 $880,704

Expenses: ($342,960) -40.0% -$342,960 -37%

Net Operating Income: $428,700 $537,744

Loan Payments: ($228,330) -$228,330

Pre-Tax Cash Flow: $200,370 6.9% $309,414 10.7%

Principal Reduction : 13,800 13,800

Total Return: $214,170 7.4% $323,214 11.1%

Scheduled Income Rent Market Rent

Estimated Expenses

No. of Bdrms/ Approx Monthly Monthly Monthly Monthly Taxes $72,036

Units Baths Sq. Ftg. Rent/Unit ($) Income ($) Rent/Unit ($) Income($) Insurance -

Utilities -

25 1+1 650 16,250 700 17,500 Gardener -

41 2+1 700 28,700 750 30,750 Rubbish -

34 2+2 750 25,500 800 27,200 On-Site Mgr. -

Off-Site Mgr. -

Main!. !Repairs -

Mise/Reserves -

Total Scheduled Rent: $70,450 $75,450 $342,960 Laundry: $1 ,000 $1,000

Other Income: $0 $0

Monthly Scheduled Gross Income: $71 ,450 $76,450 Total Expenses: ($342,960)

Annualized Scheduled Gross Income: $857,400 $917,400 Per Net Sq. Ft.: ($4.16)

Per Unit: ($3,429.60)

Los Arboles Apartments

AERIAL MAP

No warranty, express or implied, is made as to the accuracy of the information contained herein. This information is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and is subject to any special listing conditions imposed by our principals. Cooperating brokers, buyers, tenants and other parties who receive this document should not rely on it, but should use it as a starting point of analysis, and should independently confirm the accuracy of the information contained herein through a due diligence review of the books, records, files and documents that constitute reliable sources of the information described herein.

Los Arboles Apartments

AERIAL MAP

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I ® No warranty, express or implied, is made as to the accuracy of the information contained herein. This information is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and is subject to any special listing conditions imposed by our principals. Cooperating brokers, buyers, tenants and other parties who receive this document should not rely on it, but should use it as a starting point of analysis, and should independently confirm the accuracy of the information contained herein through a due diligence review of the books, records, files and documents that constitute reliable sources of the information described herein.

Los Arboles Apartments

DISCLOSURE I DISCLAIMER The Offering Memorandum was prepared by NAI Capital, Inc. and is confidential and furnished to prospective purchasers of the Property described herein. This Offering Memorandum is intended solely to assist prospective purchasers in their evaluation of the Property and their consideration of whether to purchase the Property. It is not to be used for any other purpose or made available to any other person without the prior written consent of NAI Capital, Inc

This Offering Memorandum is subject to errors, omissions, changes or withdrawal without notice and does not constitute a recommendation or endorsement as to the value of the Property by Owner/by NAI Capital , Inc and their sources. Financial projections are provided as a reference and are based on assumptions made by the Owner/NAI Capital , Inc and their sources. Prospective purchasers should make their own projections and reach their own conclusions of value. Certain portions of this Offering Memorandum merely summarize or outline property information and are in no way intended to be complete nor necessarily accurate descriptions.

The Offering Memorandum was prepared on the basis information available to the Owner and NAI Capital , Inc. in connection with the sale of the Property. It contains pertinent information about the Property and the surrounding area but does not contain all the information necessary for a complete evaluation of the Property. The projected cash flow and other financial information contained herein are for general reference only.

Although the information contained in this Offering Memorandum is believed to be accurate and reliable, neither the Owner nor NAI Capital, Inc guarantees its accuracy or completeness. Because of the foregoing and because the Property will be sold on an "as-is" basis, prospective purchasers should make their own independent assessments, investigations, and projections regarding the Property. Although additional material , which may include engineering, environmental , or other reports, may be provided to certain prospective purchasers as appropriate, such parties should confer with their own engineering experts, counsel , accountants, and other advisors and should not rely upon such material by Owner or NAI Capital, Inc.

Neither Owner nor NAI Capital , Inc. nor any of their respective officers, advisors, agents, shareholders or principals has made or will make any representation or warranties, express or implied, as to the accuracy or completeness of the Offering Memorandum or any of the contents, and no legal commitment or obligation shall arise by reason of the Offering Memorandum or the contents. Analysis and verification of the information contained in the Offering Memorandum is solely the responsibility of the prospective purchaser.

The Owner expressly reserves the right, in its sole discretion, to reject any offer to purchase the Property or to terminate any negotiations with any party or any time, with or without notice. The Owner shall have no legal commitment or obligation to any prospective purchaser unless and until a written purchase and sale agreement has been fully executed and delivered and any and all conditions to the Owner's obligations there under have been fully satisfied or waived. No other party, including the Owner's NAI Capital, Inc, is authorized to make any representation or agreement on behalf of the Owner. This Memorandum remains the Property of the Owner and NAI Capital , Inc and may be used only by parties approved by the Owner and NAI. All information in this brochure must be verified.

No warranty, express or implied, is made as to the accuracy of the information contained herein. This information is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and is subject to any special listing conditions imposed by our principals. Cooperating brokers, buyers, tenants and other parties who receive this document should not rely on it, but should use it as a starting point of analysis, and should independently confirm the accuracy of the information contained herein through a due diligence review of the books, records, files and documents that constitute reliable sources of the information described herein.