CONFIDENTIAL OFFERING DE TURK WINERY VILLAGE | HIGH DENSITY MULTI-FAMILY DEVELOPMENT OPPORTUNITY Santa Rosa, CA | Sonoma County

Bldg A

Design Review Approval & Approval for Landmark Alteration Permit for 185 Multi-Family Units, Plus Approximately 25,000 Sq. Ft. of Existing Type 'A' Commercial Building Within the Downtown Santa Rosa Station Area Specific Plan - Transit-Oriented Development (TOD) Located in Downtown Santa Rosa in the West End & North Railroad Square Preservation Rhonda Deringer, Partner Keegan & Coppin Company, Inc. [email protected] oncor international BRE Lic #: 01206401 1355 N. Dutton Ave, Santa Rosa, CA 95401 707.528.1400 x 267 | www.KeeganCoppin.com

The above information, while not guaranteed, has been secured from sources we believe to be reliable. Submitted subject to error, change or withdrawal. An interested party should verify the status of the property and the information herein. Keegan & Coppin Company, Inc. 2017. CONFIDENTIAL OFFERING DE TURK WINERY VILLAGE | HIGH DENSITY MULTI-FAMILY DEVELOPMENT OPPORTUNITY Santa Rosa, CA | Sonoma County

TABLE OF CONTENTS SECTION 1 Summary SECTION 2 Unit Composition SECTION 3 Overview SECTION 4 Location Description SECTION 5 History & Preservation of Structures SECTION 6 Architectural Plans & Renderings SECTION 7 Income & Expense Summary SECTION 8 Rent Roll SECTION 8 Location Description SECTION 9 Market Overview SECTION 10 SMART - Transit Station SECTION 11 Photos & Aerials SECTION 12 Location Maps / Downtown Maps SECTION 12 Disclaimer View Northwest

SUMMARY LOCATED AT • 8 West 9th Street & 806 Donahue Street, Santa Rosa, CA 2 Parcels - APN's: 010-091-001 and 010-091-007 Sonoma County California LAND AREA • 3.58+/- Acres Total After Vacation Action - 3.15± Acres - Plus, Approximately .43 Acres to be Acquired from the City of Santa Rosa (Vacating of Right-of-Way) PROPOSED DEVELOPMENT Design Review Approval, Vacation of Right-of-Way Approval & Approval for Landmark Alteration. 185 Multi-Family Units - Plus 25,000± Sq. Ft. of Existing Type 'A' Commercial Building for Neighborhood & Project Serving Commercial Uses. 202± Parking Stalls Provided. 4 Building Development Opportunity (185 Residential Units [15 Affordable Units] / 233,207± SF Residential - Plus 25,000± SF Commercial Space): • Building A- Proposed New Building Housing 61 Units – Totaling 48,490± SF • Building B – Existing Building (Brick) Housing 16 Units – Totaling 23,559± SF • Building C – Existing Building (Brick) Housing 15 Units – Totaling 27,293± SF – Plus 25,000± SF Commercial Space • Building D - Proposed New Building Housing 93 Units – Totaling 133,865± SF Additional Bonus Density Potential to increase the number of multi-family units to 240-276 units by replacing 20,000+/-sf of the commercial building. EXISTING BUILDINGS • 106,000+/- Sq. Ft. of Commercial & Industrial Buildings (Leased - Multi-Tenant) • Of which, 71,000± Sq. Ft. to be Redeveloped to Multi-Family Residential and Parking Areas • 25,000± Sq. Ft. of existing Type 'A' commercial building to remain for Neighborhood Commercial Services • Brick/Masonry Construction - Built in 1876 - Mostly Structurally Upgraded • Concrete Block Construction - Built in 1950's (Proposed to be demolished) • 14± Units/Tenants from 5,000± sf - 10,000± sf each - Contiguous - Commercial & Warehouse Uses • Multiple Roll-Up Doors & Dock High Loading; Fire Sprinkler Systems in Buildings; 18'-24' Ceiling Heights Avg.; Fenced Yard Area & Parking; Electrical Power - 800 amps (W. 9th) & 1200 amps (Donahue); Office Space (10,000± sf) throughout & conditioned • General Plan Designation: Transit Village Medium • Zoning: TV-R-H-SA – Transit Village – Residential; Station Area Combining District (25-40 ac.) PRICE UPON REQUEST / OR JV OPPORTUNITY The above information, while not guaranteed, has been secured from sources we believe to be reliable. Submitted subject to error, change or withdrawal. An interested party should verify the status of the property and the information herein. Keegan & Coppin Company, Inc. 2017. CONFIDENTIAL OFFERING DE TURK WINERY VILLAGE | HIGH DENSITY MULTI-FAMILY DEVELOPMENT OPPORTUNITY Santa Rosa, CA | Sonoma County

UNIT COMPOSITION 185 Multi-Family Units - Plus 25,000± Sq. Ft. of Existing Type 'A' Commercial Building for Neighborhood & Project Serving Commercial Uses. Unit Composition (1 and 2 Bedroom Units): Building A: 61 Units Building B: 16 Units Building C: 15 Units Building D: 93 Units (Includes 15 Affordable Units - Very Low Income)

BUILDING (AREA) “A” (48,490± SF) This area is currently being used for parking. This area will be replaced by a 61 unit apartment building, four stories high. Parking for Building “A” will be provided as shown on the site plan. (51-1 bedroom/10-2 bedroom units)

BUILDING “B” (23,559± SF) Two Commercial/Industrial units totaling approximately 10,000 sq. ft. w/10 parking spaces exist. This Building will remain and be converted to 16 residential apartment units, three story high with 8 ground floor units and 8 second/third floor townhome apartment units. Parking will be provided as shown on the attached site map. (8-1 bedroom units and 8-2 bedroom units).

Bldg A

Bldg B

UNIT COMPOSITION (CONT.)

BUILDING “C” (27,293± SF) This Building is currently being used as Industrial and Commercial units, including a neighborhood fitness facility and café. Commercial units will remain in these units, except for approximately 30,000 sq. ft. of these buildings that will be housing and parking, as shown on attached drawings. A community park and entrance to the housing units will be in this building and retail commercial uses will also be located in this area. The commercial spaces will be neighborhood serving commercial of approximately 25,000 square feet plus 15 residential apartment units in this building. (7-1 bedroom units and 8-2 bedroom units).

BUILDING “D” (133,865± SF) Currently being used as Industrial units. This use will be replaced by approximately 93 residential apartment units, (one and two bedroom units), as shown on attached drawings. Located in a four story building. (See attached elevations-12 units on each floor on Donahue Street and the remaining units on the podium to the rear of the property, (41- 1 bedroom units and 52-2 bedroom units-11 are townhomes). Bldg C AFFORDABILITY 15 units are Very Low Income located in building D.

Bldgs C&D Bldg D

OVERVIEW

PROJECT DESCRIPTION (PROPOSED & APPROVED) Design review approval & approval for landmark alteration permit and vacation of right-of-way approval for 185 multi-family units (approval of a 35% density bonus), plus approximately 25,000 sq. ft. of existing type 'A' commercial building within the downtown Santa Rosa Station Area Specific Plan - Transit-Oriented Development (TOD). Located in downtown Santa Rosa in the West End & North Railroad Square Preservation Districts. Unit Composition (1 and 2 Bedroom Units): Building A: 61 Units - 48,490± sf Building B: 16 Units - 23,559± sf Building C: 15 Units - 27,293± sf Building D: 93 Units (Includes 15 Affordable Units - Very Low Income) - 133,865± sf • A Total of 233,207± square feet of High Density Multi-Family Units, and Type 'A' Commercial Building (Existing) of 25,000± sf • 202± Parking Spaces Provided, which Includes 42 Curb Side Parking Spaces on Street A transit-oriented development (TOD) site - A mixed-use residential and commercial area designed to maximize access to public transport, and often incorporates features to Bldg D encourage transit ridership.

Additional Bonus Density Potential to increase the number of multi-family units to 240- 276 units by replacing 20,000+/-sf of the commercial building.

Bldg C Bldg D

LOCATION DESCRIPTION Located downtown Santa Rosa in Sonoma County on the West side of Highway 101 and North of Highway 12. In the Historic Railroad Square Neighborhood and West End Neighborhood. Railroad Square is the historic heart of the downtown and is Santa Rosa’s “Old Town”. Railroad Square was honored with a listing on the National Register of Historic Places in 1979 because of its preservation efforts for restoring and preserving the significant architectural buildings that represent the influence the railroad had on a community. When the first trains arrived in Railroad Square in the 1870’s, the focus of the town turned to the hustle and bustle around the Depot. Railroad Square is excited to announce the return of the passenger train in the Fall of 2016. Sonoma-Marin Area Rail Transit (SMART) is a voter- approved passenger rail and bicycle-pedestrian pathway project located in Marin and Sonoma counties. It will serve a 70-mile corridor from Larkspur to Cloverdale, with a first phase from San Rafael to Santa Rosa, the main Santa Rosa station being in Railroad Square.

HISTORY & PRESERVATION OF STRUCTURES openings will be the same size but will have a segmental arch of only one course. The new construction to the north of the winery is visually distinct from the historic Proposed / Approved for 185 Multi-Family Units, Plus Approximately 25,000 Sq. Ft. of buildings so that the historical significance of the DeTurk winery is protected. There are Existing Commercial Building. Proposing an adaptive reuse project, which will preserve several aspects of design which determine whether new construction is compatible with the exterior of the DeTurk Winery complex (Winery and U.S. Bonded Warehouse) while the design of the historic building. These include: scale, orientation, materials, roof lines, developing residential units within the interior. height, set-backs, and window patterns. Proposed development of 185 units of attached multi-family units, and limited commercial The proposed apartment buildings are compatible with the historic winery in terms of development within and around the DeTurk Winery. Of these 15 will provide very low scale, materials, height, and set-backs. The use of hard materials such as brick and income affordable housing. This development will consist of high density apartment stucco is compatible with the red brick of the winery. The scale, height and set-backs units approximately 41’ tall within the winery and 45’ surrounding the winery on both of the proposed high density apartments are similar to the winery. Space has been left ends. In order to accommodate new construction, it is between the old and new buildings so that key features, necessary to remove the interior walls within the winery; such as the round windows, are clearly visible from the however, the original exterior walls will be preserved. street. The design of the proposed project was influenced In order to construct housing to the north of the winery, by historic photographs of Santa Rosa. These dwellings the current cement block building at West 9th and 806 are compatible with the size, scale, color, material and Donahue Street (APN 010-091-001) will also be removed. character of the DeTurk Winery. The DeTurk Winery and U.S. Bonded Warehouse were documented in 2006 and were determined to be eligible for the California Register both individually and as a contributor to a designated local preservation district. The project is bounded by the Northwestern Pacific

Railroad tracks on the east, Donahue Street on the west, West 9th Street on the north, and West 8th Street on the south. Currently there are two historically significant buildings which are located in the project area and which make up the winery complex: the ca. 1879 DeTurk Winery and the U.S. Bonded Warehouse which was constructed between 1888 and 1892. The DeTurk Winery Village will preserve the significant historic materials and features, and the historic industrial character of the winery. The simple red brick walls, without ornamentation or the intrusion of other materials, define the industrial character of the winery building. A few of the upper level openings have remnants of wooden shutters. It was determined that wood shutters were not a character-defining aspect and that they detract from the over-all historic appearance of the building, so they are not being reintroduced. The rehabilitation plans call for appropriate exterior alterations to the winery in order to permit reuse of the building. New elements, such as the doors and windows which will be added along the west elevation, will be similar in style to the original arched windows and doors. These alterations have been justified in terms of their functionality for the proposed residential space. Newly added elements are compatible with but recognizably different from historic features. Such is the case with the new openings on the upper level. Each of the original upper openings has a two-course segmental arch. The proposed new

ARCHITECTURAL PLANS, DRAWINGS & RENDERINGS 2 FLOORS EXISTING SITE PLAN (PORTION)

2 FLOORS

UNITS B - D

ARCHITECTURAL PLANS, DRAWINGS & RENDERINGS Existing Building New Building

PROPOSED SITE PLANS

1ST FLOOR N

2ND FLOOR

ARCHITECTURAL PLANS, DRAWINGS & RENDERINGS Existing Building New Building

PROPOSED SITE PLANS N

3RD FLOOR

4TH FLOOR

Annual Annual Scheduled Projected Income Income $609,912 $706,368

Plus: Reimbursements $15,600 $15,600 Less: Vacancy (5%) ($30,496) ($35,318)

Adjusted Gross $595,016 $686,650

Less Annual Expenses (Projected)

Property Taxes $127,000 $127,000

Insurance $23,000 $23,000

Management $25,000 $34,000

Utilities $50,000 $50,000

Repairs & Maintenance $30,000 $30,000

Total Annual Expenses ($255,000) ($264,000)

Annual Net Operating Income $340,016 $422,650

The above information, while not guaranteed, has been secured from sources we believe to be reliable. This is not an offer to sell or lease and is subject to change or withdrawal. An interested party should verify the status of the property and the information herein CONFIDENTIAL OFFERING DE TURK WINERY VILLAGE | HIGH DENSITY MULTI-FAMILY DEVELOPMENT OPPORTUNITY Santa Rosa, CA | Sonoma County

RENT ROLL

CURRENT/PROFORMA LEASES PROJECTED LEASES

UNIT TENANT ±RSF AREA MONTHLY RENT RENT/SF MONTHLY RENT RENT/SF

A DISTRIBUTION 8,945 $6,946.00 $0.74 $7,076.00 $0.79

B-D FITNESS 25,000 $9,000.00 $0.42 $11,250.00 $0.45

E-F MOVING 16,000 $7,500.00 $0.47 $8,800.00 $0.55

G MOVING 7,500 $3,500.00 $0.47 $4,125.00 $0.55

H OFFICES (2) 5,000 $4,000.00 $0.80 $4,250.00 $0.85

H2-K STORAGE 32,635 $12,780.00 $0.40 $15,600.00 $0.50

L PRACTICE 5,000 $3,000.00 $0.60 $3,500.00 $0.70

STORAGE 2,000 $2,100.00 $1.05 $2,100.00 $1.05

BLDG AREAS STORAGE (BUILDING) 3,605 $0.00 $0.00 $2,163.00 $0.60

TOTAL ACTUAL RENT $50,826 X 12 = $609,912 ANNUAL SCHEDULED RENT + $15,600 = (TENANT REIMBURSEMENT)

TOTAL PROJECTED RENT $58,864 X 12 =$706,368 ANNUAL PROJECTED RENT + $15,600 = (TENANT REIMBURSEMENT)

REMARKS: ACTUAL & PROJECTED INCOME & EXPENSE ANALYSIS. All Leases are modified gross. Landlord pays for PG&E and Water/Sewer and Tenant pays for Trash. Some of the Tenants reimburse the Landlord for utility expenses, which is included in the rent or reimbursements. Call listing agent regarding lease terms and conditions.

populous area, home to approximately one-third of the LOCATION DESCRIPTION county’s population and was recently named as one of the Santa Rosa, California is the county seat of Sonoma nation’s “most livable communities” by Partners for Livable County. It is the largest city in the North Bay Area and all Communities. of California’s Wine Country. The city of Santa Rosa is the Sonoma County’s unemployment rate is one of the North Bay’s premier location and as a business and service lowest in California and the county continues to show hub, Santa Rosa is the economic engine that drives the long-term job growth in the health care, hospitality and region. business service sectors. For the leisure, hospitality, As the largest city between Portland and San Francisco, educational and health services, which includes trade Santa Rosa serves a four county region as the hub for schools, social workers and health care professionals, technology and entrepreneurial businesses, retail, banking has seen employment growth improve on a year-over-year and employment. Santa Rosa has a dynamic and well- basis. And business and professional services jobs have balanced economy, anchored by strengths in tourism, increased from a year earlier. In addition, new housing high-tech manufacturing and retail. Residents enjoy a continues to increase throughout the county, while job superb quality of life while employers benefit from a skilled growth and taxable sales also continue to rise. workforce. Santa Rosans have a deep appreciation for the arts, education, conscientious business development and quality living. The city of Santa Rosa offers a one-stop permitting process, easy access to Economic Development program staff and Community Development staff, collaborative partnerships with key business players; from our local chambers of commerce, the higher education institutes, brokers, benchmark industries, and community organizations to a global venture community, just to name a few. The city of Santa Rosa is conveniently located just 55 miles north of San Francisco via the Golden Gate Bridge. Santa Rosa is a main shopping hub for the surrounding neighborhoods near and along the 101 corridor, such as Petaluma, Rohnert Park, Windsor, Sonoma, Healdsburg, and Sebastopol. Santa Rosa has several prominent shopping districts, including Downtown, Santa Rosa Avenue, and Montgomery Village, offering a variety of general retail, boutique shops, dining, and entertainment. There are two regional shopping malls, Coddingtown Mall and Santa Rosa Plaza. Home to approx. 500,000 people, Sonoma County is a prime location for tourism as well as residence. Just a short drive from the San Francisco Bay Area, there are nine incorporated cities in the county, in addition to seventeen unincorporated areas. The city of Santa Rosa is the most

MARKET OVERVIEW Santa Rosa is the fifth most populous city in the San Francisco Bay Area. The City serves as a business and service hub for California’s North Bay Region and serves as the Sonoma County Seat. Sonoma County is located north of the San Francisco Bay. The county’s real estate development and business infrastructure is primarily located along Highway 101, which serves as the main arterial connection to Napa, Sacramento, San Francisco. Sonoma County is 35 miles north of San Francisco, which serves as a main attraction to the area. EMPLOYMENT GROWTH The Santa Rosa MSA recently surpassed pre-recession employment levels of 195,800 jobs after adding 5,800 jobs in 2015, or 3.0% growth to 199,800 nonfarm jobs. The Santa Rosa jobless rate dropped to 4.2% in June 2016 from 5.3% at the beginning of 2015. The current unemployment rate is now 730 basis points below the peak 11.5% that was recorded in March 2010. California’s unemployment rate is currently 5.9%. Approximately 5,600 additional jobs have been added to Santa Rosa’s employment base over the past year to a current total of 202,600 jobs. HOUSING AFFORDABILITY

DEMOGRAPHICS (ESTIMATED) 1 MILE 3 MILE 5 MILE

Population

2017 Estimate 21,334 147,399 201,482

Growth 2017-2022 3.82% 4.79% 4.49% The average residential sale price in Santa Rosa is $525,000 which makes it among the lowest of all the counties in its region. In addition, the median home price has appreciated Households 81% over the last five years. Approximately 20% of the residents can afford the median priced home. This is more than twice the rate of the San Francisco-San Mateo-Redwood City region 2017 Estimate 7,808 53,181 74,414 affordability index of only 8.5% with a median home price of $1,180,000 and above the San Jose-Sunnyvale-Santa Clara region affordability index of 17.5% with a median home price $845,000. The housing affordability and high quality of life has made Santa Rosa one of Growth 2017 - 2022 4.59% 4.99% 4.79% the most attractive locations for employers within the greater San Francisco Bay Area going forward. 2017 Est. Households by HH Income

2017 Est. Households by HH Income $68,038 $81,580 $89,217

SMART - TRANSIT STATION (NEARBY) Santa Rosa–Railroad Square Depot is a Sonoma-Marin Area Rail Transit train station in Santa Rosa scheduled to open in 2017. It is located west of Wilson Street between West 4th and 5th Streets, across the U.S. Route 101 freeway from downtown at the site of the Santa Rosa Northwestern Pacific Railroad Depot. In 2008, voters approved the Sonoma-Marin Area Rail Transit (SMART) to create a passenger rail and bicycle-pedestrian pathway project through Sonoma and Marin counties. It will connect residents and visitors with jobs, education, recreation, and services along with helping further reduce congestion on Highway 101. The project when fully built out will serve a 70-mile corridor from Larkspur to Cloverdale with the first phase from San Rafael to Santa Rosa. Phase I includes 42 miles of new track, 10 stations, 1 tunnel, 20 bridges, and 14 new trains. Three stations will service Santa Rosa and will be located at the Sonoma County Airport, Santa Rosa North and Santa Rosa Downtown. SMART is in the testing phase. The Phase 1 passenger service from Airport Boulevard in Santa Rosa to downtown San Rafael begins in 2017. Planners predict daily weekday ridership between 3,000 and 5,000 passengers. Santa Rosa – Jennings: The Jennings Avenue station site is adjacent to Range Avenue south of Jennings, which is just west of Highway 101 and south of Coddington Shopping Center. Santa Rosa – Railroad Square: Located at the site of the 1904 historic depot in the Railroad Square District of Santa Rosa between West Fourth & Fifth Streets. Sonoma County Airport: This station will be located on Airport Boulevard near the rapidly growing regional airport and has one of the highest concentration of jobs in the North Bay and is expected to have 17,000 jobs in the area by 2040 (there were 5,000 jobs located there in 2012).

PHOTOS & AERIALS

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LOCATION MAPS / DOWNTOWN MAPS

DISCLAIMER This property is being offered on an as-is basis. While the Broker believes the information in this brochure to be accurate, no warranty or representation is made as to its accuracy or completeness. Interested parties should conduct independent investigations and reach conclusions without reliance on materials contained in this brochure. This property owner requests that you do not disturb the Tenants, as the property will only be shown in coordination with the Listing Agent. This brochure is presented under the terms and conditions of the Confidentiality Agreement. As such, the material contained in this brochure is confidential and is provided solely for the purpose of considering the purchase of the property described herein. Offers should be presented to the agent for the property owner, Rhonda Deringer of Keegan & Coppin Company, Inc. Prospective buyers are encouraged to provide buyers background, source of funds and any other information that would indicate their ability to complete the transaction CONTACT INFORMATION smoothly. Rhonda Deringer SELLER DISCLOSURE Partner Rhonda Deringer is a Member of Odyssey Development Company, LLC. Odyssey BRE # 01206401 Development Company, LLC is the Managing Member and an Investor of Railroad Square (707) 528-1400 x267 Village, LLC (Property Owner). Rhonda Deringer is also an investor in Railroad Square [email protected] Village, LLC (Property Owner). Rhonda Deringer is a licensed real estate agent for the State www.keegancoppin.com of California. Rhonda Deringer is a real estate agent with Keegan & Coppin Co., Inc. Keegan & Coppin Co., Inc. is not a principal in this transaction or in the property.