Woodlake Oaks Apartments

1125 Lochbrae RoadSacramento, CA 95815

OFFERING MEMORANDUM | ADD VALUE OPPORTUNITY

Timothy Swanston Philip McDanielSenior Vice President Associate916-541-3630 (707) 867-5857Lic: 01887506 Lic: 02079234Swanston@ncc1031.com McDaniel@ncc1031.com

Woodlake Oaks ApartmentsCONTENTS

Exclusively Marketed by:

Timothy SwanstonSenior Vice PresidentLic: 01887506916-541-3630Swanston@ncc1031.com

Philip McDanielAssociateLic: 02079234(707) 867-5857McDaniel@ncc1031.com

We obtained the following information above from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or otherconditions, prior sale, lease or financing, or withdrawal without notice.  We include projections, opinions, assumptions or estimates for example only, and they may not represent the current or future performance of the property. You and your tax and legal advisors should conduct yourown investigation of the property and transaction.

01 Executive Summary Investment Summary 4 Unit Mix Summary 6 Location Summary 7

02 Property Description Property Features 8 Aerial Map 9 Property Images 10

03 Rent Comps Rent Comparables Summary 12 Rent Comparables Map 13

04 Sale Comps Sale Comparables Summary 14 Sale Comparables Charts 15 Sale Comparables Map 16

05 Rent Roll Rent Roll 17

06 Financial Analysis Income & Expense Analysis 18

07 Demographics Demographics 19 Demographic Charts 21

The information contained in the following offering memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from North Coast Commercial Incand it should not be made available to any other person or entity without the written consent of North Coast Commercial Inc. By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such information in the strictest confidence. The recipient further agrees thatrecipient will not photocopy or duplicate any part of the offering memorandum. If you have no interest in the subject property, please promptly return this offering memorandum to North CoastCommercial Inc. This offering memorandum has been prepared to provide summary, unverified financial and physical information to prospective purchasers, and to establish only a preliminarylevel of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. North Coast Commercial Inc has not made any investigation, and makes no warranty orrepresentation with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property andimprovements, the presence or absence of contaminating substances, PCBs or asbestos, the compliance with local, state and federal regulations, the physical condition of the improvementsthereon, or financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this offering memorandum has been obtained from sources we believe reliable; however, North Coast Commercial Inc has not verified, and will not verify, any of theinformation contained herein, nor has North Coast Commercial Inc conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding theaccuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Prospective buyers shall be responsiblefor their costs and expenses of investigating the subject property.

Woodlake Oaks Apartments Confidentiality and Disclaimer | 03

CONFIDENTIALITY AND DISCLAIMER

PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.PLEASE CONTACT NORTH COAST COMMERCIAL INC FOR MORE DETAILS.Copyright © 2020 CREOP, LLC. All Rights Reserved.

Woodlake Oaks Apartments Investment Summary | 04

OFFERING SUMMARYADDRESS 1125 Lochbrae Road

Sacramento CA 95815COUNTY SacramentoMARKET SacramentoSUBMARKET WoodlakeBUILDING SF 6,996 SFLAND SF 10,000NUMBER OF UNITS 12YEAR BUILT 1947APN 27501650200000OWNERSHIP TYPE Fee Simple

FINANCIAL SUMMARYOFFERING PRICE $1,549,000PRICE PSF $221.41PRICE PER UNIT $129,083OCCUPANCY 97.00 %NOI (CURRENT) $70,021NOI (Pro Forma) $114,259CAP RATE (CURRENT) 4.52 %CAP RATE (Pro Forma) 7.38 %GRM (CURRENT) 13.19GRM (Pro Forma) 9.52

PROPOSED FINANCINGLOAN TYPE AmortizedDOWN PAYMENT $542,150LOAN AMOUNT $1,006,850INTEREST RATE 3.80 %ANNUAL DEBT SERVICE $38,260LOAN TO VALUE 65 %

DEMOGRAPHICS 1 MILE 3 MILE 5 MILE2019 Population 9,804 149,284 365,0712019 Median HH Income $36,541 $52,514 $57,0852019 Average HH Income $57,378 $76,209 $82,279

Under Current Ownership for 18 years

Pride of Ownership

New Exterior Stucco

New Roof Installed December 2019

Individual Waters Meters Installed

Updated Plumbing

All Interiors Updgraded Within the Last 5 Years

Woodlake Residential Location

Located in an Opportunity Zone

Woodlake Oaks Apartments Investment Summary | 05

Woodlake Oaks Apartments is a 12 unit, pride of ownership building,consisting of (12) 1bd/1ba units. The property has been under the currentownership for 18 years, and has been beautifully maintained andmanaged during that time. Recent improvements include a brand newroof, updated plumbing, new individual water meters, new exterior stucco,and all 12 interiors have been updated within the last five years. WoodlakeOaks Apartments is a tremendous add value opportunity without the needfor any capital improvements. There is currently $2884 per month loss-to-lease, bringing strong day 1 upside to the new owners with more efficientmanagement. Additionally, value can be added through the addition of aRUBS program at $40 per month per unit, and there are 12 storage unitson site that could be rented out for an additional $35 per month. Withimproved efficiency, the onsite laundry income can be improved as well.This is a rare value-add opportunity without the need for any capitalimprovements. Lastly, this property is located within an opportunity zone,providing the right buyer a potential shelter from capital gains.

Woodlake Oaks Apartments Unit Mix Summary | 06

Actual MarketUnit Mix # Units Square Feet Current Rent Rent PSF Monthly Income Market Rent Market Rent PSF Market Income

1 bd + 1 ba 12 583 $813 $1.39 $9,750 $1,050 $1.80 $12,600

Totals/Averages 12 583 $813 $1.39 $9,750 $1,050 $1.80 $12,600

Woodlake Oaks Apartments Location Summary | 07

Prime Residential Location• Woodlake Oaks Apartments is located in the highly desirable

neighborhood of Woodlake. Woodlake is a stately 1930s and 1940sneighborhood situated within North Sacramento. Lochbrae Road islocated on a street and neighborhood consisting of mostly singlefamily homes.

This neighborhood is mostly inhabited by career professionals; it isoften cited in Sacramento publications as one of Sacramento'smost desired neighborhoods. Like parts of East Sacramento andLand Park, the neighborhood employs private security.

Woodlake is home to Woodlake Tavern, the Woodlake Swim Club,and Iceland, a seasonal ice skating rink. The headquarters ofSacramento News & Review, Sacramento's alternative newspaper,is in Woodlake. The Woodlake area consists mostly of single familyhomes.

• Residential location consisting mostly single family homes

• Easy access to downtown/midtown Sacramento

Regional Map

Locator Map

Woodlake Oaks Apartments Property Features | 08

PROPERTY FEATURESNUMBER OF UNITS 12BUILDING SF 6,996LAND SF 10,000LAND ACRES .23YEAR BUILT 1947# OF PARCELS 1ZONING TYPE R-1 - SINGLE FAMILY RESIDENTIAL

6-8 UNITS / ACRENUMBER OF STORIES 2NUMBER OF BUILDINGS 1NUMBER OF PARKING SPACES 12PARKING RATIO 1:1WASHER/DRYER on site laundry

UTILITIESWATER/SEWER OwnerTRASH OwnerLANDSCAPING OwnerELECTRIC Owner

Woodlake Oaks Apartments Aerial Map | 09

Woodlake Oaks Apartments Property Images | 10

Woodlake Oaks Apartments Property Images | 11

Woodlake Oaks Apartments Rent Comparables Summary | 12

Rents shown in ascending order.

Woodlake Oaks Apartments Rent Comparables Map | 13

# Address CityS 1125 Lochbrae Road Sacramento1 1003 Lochbrae Rd Sacramento2 1019 Lochbrae Rd Sacramento3 2411 Boxwood St Sacramento4 2394 Oakmont St Sacramento5 2059 Royal Oaks Dr Sacramento6 2391 Fairfield St Sacramento7 1219 Del Paso Blvd Sacramento

Woodlake Oaks Apartments Sale Comparables Summary | 14

PROPERTY Units Built Sale Price Price/Unit PSF Close Date DISTANCE (mi)

1 590 Las Palmas AveSacramento, CA 95815 14 1960 $1,550,000 $110,714 $227.11 8/1/2019 1.50

2 724 Lampasas AveSacramento, CA 95815 10 1970 $950,000 $95,000 $96.60 12/3/2019 1.30

3 2319 Empress StSacramento, CA 95815 8 1960 $925,000 $115,625 $182.30 8/16/2019 1.10

4 683 El Camino AveSacramento, CA 95815 8 1958 $1,100,000 $137,500 $204.61 8/23/2019 1.00

5 375 El Camino AveSacramento, CA 95815 8 1954 $825,000 $103,125 $206.25 12/20/2019 0.80

6 355 El Camino AveSacramento, CA 95815 8 1954 $825,000 $103,125 $168.44 12/20/2019 0.70

7 2848 Del Paso BlvdSacramento, CA 95815 11 1958 $1,050,000 $95,455 $192.06 12/30/2019 1.70

AVERAGES 10 1959 $1,032,143 $108,649 $182.48

SUBJECT 12 1947 $1,549,000 $129,083 $221.41

Woodlake Oaks Apartments Sale Comparables Charts | 15

Woodlake Oaks Apartments Sale Comparables Map | 16

# Address CityS 1125 Lochbrae Road Sacramento1 590 Las Palmas Ave Sacramento2 724 Lampasas Ave Sacramento3 2319 Empress St Sacramento4 683 El Camino Ave Sacramento5 375 El Camino Ave Sacramento6 355 El Camino Ave Sacramento7 2848 Del Paso Blvd Sacramento

Woodlake Oaks Apartments Rent Roll | 17

Unit Square Feet Unit Mix Monthly Rent PSF Market Rent Move-in Date1 583 1 bd + 1 ba $750 $1.29 $1,050 9/7/20132 583 1 bd + 1 ba $875 $1.50 $1,050 4/8/20203 583 1 bd + 1 ba $750 $1.29 $1,050 8/30/20104 583 1 bd + 1 ba $700 $1.20 $1,050 2/6/20175 583 1 bd + 1 ba $750 $1.29 $1,050 2/3/20166 583 1 bd + 1 ba $875 $1.50 $1,050 5/3/20197 583 1 bd + 1 ba $875 $1.50 $1,050 4/27/20198 583 1 bd + 1 ba $795 $1.36 $1,050 8/24/20179 583 1 bd + 1 ba $895 $1.54 $1,050 5/2/2020

10 583 1 bd + 1 ba $795 $1.36 $1,050 9/20/201711 583 1 bd + 1 ba $895 $1.54 $1,050 4/5/202012 583 1 bd + 1 ba $795 $1.36 $1,050 12/29/2017

Totals/Averages $9,750 $1.39 $12,600

Woodlake Oaks Apartments Income & Expense Analysis | 18

INCOME CURRENT PRO FORMA

Gross Potential Rent $117,000 $151,200

RUBS $5,760

Laundry Income $456 $720

Storage $5,040

Gross Potential Income $117,456 $162,720

Less: General Vacancy $3,510 $4,536

Effective Gross Income $113,946 $158,184

Less: Expenses $43,925 $43,925

Net Operating Income $70,021 $114,259

Annual Debt Service $38,260 $38,260

Debt Coverage Ratio 1.83 2.99

Cash Flow After Debt Service $31,761 $75,999

Principal Reduction $1 $1

Total Return 5.9 % $31,762 14.0 % $76,000

EXPENSES CURRENT PRO FORMA

Real Estate Taxes $1,413 $16,950 $1,413 $16,950

Insurance $333 $3,996 $333 $3,996

Management Fee $488 $5,850 $488 $5,850

Water / Sewer $991 $11,891 $991 $11,891

Gas and Electric $140 $1,685 $140 $1,685

Trash Removal $123 $1,478 $123 $1,478

Landscaping $140 $1,680 $140 $1,680

Pest Control $33 $395 $33 $395

Total Operating Expense $3,660 $43,925 $3,660 $43,925

Annual Debt Service $3,188 $38,260 $3,188 $38,260

Expense / SF $6.27 $6.27

% of EGI 38.55 % 27.77 %

Per Unit Per Unit

REVENUE ALLOCATIONCURRENT

DISTRIBUTION OF EXPENSESCURRENT

Woodlake Oaks Apartments Demographics | 19

POPULATION 1 MILE 3 MILE 5 MILE

2000 Population 9,381 137,473 307,751

2010 Population 9,336 138,182 335,325

2019 Population 9,804 149,284 365,071

2024 Population 10,078 156,743 382,928

2019 African American 1,053 18,879 42,665

2019 American Indian 184 2,059 4,650

2019 Asian 785 17,084 45,798

2019 Hispanic 4,612 51,001 109,754

2019 Other Race 2,205 23,732 50,243

2019 White 4,720 74,068 187,880

2019 Multiracial 754 11,606 29,756

2019-2024: Population: Growth Rate 2.75 % 4.90 % 4.80 %

2019 HOUSEHOLD INCOME 1 MILE 3 MILE 5 MILE

less than $15,000 804 9,127 20,589

$15,000-$24,999 644 6,911 14,580

$25,000-$34,999 324 5,049 12,032

$35,000-$49,999 586 7,971 17,464

$50,000-$74,999 526 10,151 24,114

$75,000-$99,999 240 6,918 17,473

$100,000-$149,999 321 8,205 21,495

$150,000-$199,999 134 3,211 9,628

$200,000 or greater 130 3,461 9,590

Median HH Income $36,541 $52,514 $57,085

Average HH Income $57,378 $76,209 $82,279

HOUSEHOLDS 1 MILE 3 MILE 5 MILE

2000 Total Housing 3,943 61,210 136,631

2010 Total Households 3,567 56,610 136,518

2019 Total Households 3,711 61,004 146,966

2024 Total Households 3,798 64,188 153,801

2019 Average Household Size 2.62 2.38 2.43

2000 Owner Occupied Housing 1,349 20,791 54,153

2000 Renter Occupied Housing 2,255 36,358 74,047

2019 Owner Occupied Housing 1,280 20,967 61,382

2019 Renter Occupied Housing 2,431 40,037 85,583

2019 Vacant Housing 422 5,942 12,716

2019 Total Housing 4,133 66,946 159,682

2024 Owner Occupied Housing 1,329 21,754 63,785

2024 Renter Occupied Housing 2,470 42,434 90,016

2024 Vacant Housing 435 6,101 13,106

2024 Total Housing 4,233 70,289 166,907

2019-2024: Households: Growth Rate 2.30 % 5.10 % 4.55 %

Source: esri

Woodlake Oaks Apartments Demographics | 20

2019 POPULATION BY AGE 1 MILE 3 MILE 5 MILE

2019 Population Age 30-34 666 13,100 29,759

2019 Population Age 35-39 664 10,891 26,390

2019 Population Age 40-44 555 8,989 22,309

2019 Population Age 45-49 556 8,541 21,290

2019 Population Age 50-54 535 8,350 20,972

2019 Population Age 55-59 591 8,568 21,253

2019 Population Age 60-64 565 7,709 19,477

2019 Population Age 65-69 443 6,513 16,846

2019 Population Age 70-74 356 4,675 12,718

2019 Population Age 75-79 208 2,848 8,074

2019 Population Age 80-84 136 1,852 5,309

2019 Population Age 85+ 134 2,188 6,444

2019 Population Age 18+ 7,030 116,985 284,860

2019 Median Age 34 34 35

2019 INCOME BY AGE 1 MILE 3 MILE 5 MILE

Median Household Income 25-34 $45,515 $56,207 $59,470

Average Household Income 25-34 $64,754 $75,057 $78,268

Median Household Income 35-44 $43,570 $64,410 $73,301

Average Household Income 35-44 $68,635 $90,680 $95,478

Median Household Income 45-54 $43,019 $66,395 $75,408

Average Household Income 45-54 $65,679 $94,753 $103,295

Median Household Income 55-64 $35,674 $52,862 $59,369

Average Household Income 55-64 $52,926 $75,596 $86,455

Median Household Income 65-74 $29,158 $42,221 $47,683

Average Household Income 65-74 $51,562 $65,392 $73,246

Average Household Income 75+ $37,385 $49,111 $54,779

2024 POPULATION BY AGE 1 MILE 3 MILE 5 MILE

2024 Population Age 30-34 637 14,308 32,014

2024 Population Age 35-39 649 11,389 27,214

2024 Population Age 40-44 657 10,276 25,097

2024 Population Age 45-49 582 8,893 22,059

2024 Population Age 50-54 533 8,267 20,543

2024 Population Age 55-59 536 8,187 20,323

2024 Population Age 60-64 545 7,834 19,882

2024 Population Age 65-69 499 6,915 17,769

2024 Population Age 70-74 398 5,605 14,913

2024 Population Age 75-79 286 4,008 11,094

2024 Population Age 80-84 171 2,340 6,659

2024 Population Age 85+ 136 2,260 6,622

2024 Population Age 18+ 7,226 122,886 299,161

2024 Median Age 35 34 35

2024 INCOME BY AGE 1 MILE 3 MILE 5 MILE

Median Household Income 25-34 $50,316 $63,086 $66,458

Average Household Income 25-34 $70,704 $84,778 $88,174

Median Household Income 35-44 $48,903 $70,802 $78,064

Average Household Income 35-44 $77,086 $98,333 $104,048

Median Household Income 45-54 $46,165 $73,175 $81,008

Average Household Income 45-54 $72,800 $105,182 $113,256

Median Household Income 55-64 $39,305 $57,791 $65,186

Average Household Income 55-64 $62,716 $86,108 $97,432

Median Household Income 65-74 $30,591 $45,407 $51,473

Average Household Income 65-74 $55,675 $72,230 $81,433

Average Household Income 75+ $43,018 $58,819 $63,986

Woodlake Oaks Apartments Demographic Charts | 21

1 Mile Radius 3 Mile Radius 5 Mile Radius

2019 Household Income

1 Mile Radius 3 Mile Radius 5 Mile Radius

2019 Population by Race

Woodlake Oaks Apartments Demographic Charts | 22

2019 Household Occupancy - 1 Mile Radius

Average Income Median Income

2019 Household Income Average and Median

Woodlake Oaks Apartments

Exclusively Marketed by:

Timothy SwanstonSenior Vice PresidentLic: 01887506916-541-3630Swanston@ncc1031.com

Philip McDanielAssociateLic: 02079234(707) 867-5857McDaniel@ncc1031.com

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