818 N. 39th Avenue. Phoenix AZ Offering Memorandum

Renovated 11 Unit Investment Opportunity 1 NON - ENDORSEMENT AND DISCLAIMER NOTICE

Confidentiality and Disclaimer The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, 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 and improvements, the presence or absence of contaminating substances, PCB's or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the 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 Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap. All rights reserved.

Non-Endorsement Notice Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation's logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

ROOSEVELT COTTAGES Phoenix, AZ ACT ID ZAA0080257

2 ROOSEVELT COTTAGES

INVESTMENT OVERVIEW

3 ROOSEVELT COTTAGES

OFFERING SUMMARY EXECUTIVE SUMMARY

VITAL DATA Price $1,500,000 CURRENT YEAR 1 Down Payment 35% / $525,000 CAP Rate 6.56% 6.94% MAJOR EMPLOYERS Loan Amount $975,000 GRM 12.63 10.82 Net Operating Loan Type Proposed New $98,415 $104,119 Income EMPLOYER # OF EMPLOYEES Net Cash Flow Interest Rate / Amortization 4% / 30 Years 8.11% / $42,557 9.19% / $48,261 Freeport-Mcmoran Miami Inc 9,477 After Debt Service Price/Unit $136,364 Total Return 11.38% / $59,728 12.60% / $66,131 Department Trnsp 4,700 Price/SF $158.19 Communication and Cmnty Partnr 4,500 Number of Units 11 Police Department 4,140 Rentable Square Feet 9,482 City of Phoenix 3,575 Number of Buildings 10 Canyon Hospitality LLC 3,518 Number of Stories 1 Parks and Recreation Dept 3,199 Year Built / Renovated 1951 / 2017 Lot Size 1.11 acre(s) Viads Mktg & Events Group 3,054 Cyprus Climax Metals Company 2,930 UNIT MIX Human Services Department 2,900 NUMBER APPROX. UNIT TYPE County of Maricopa 2,897 OF UNITS SQUARE FEET Integrity Stffing Slutions Inc 2,725 3 1 Bed/ 1 Bath 564 4 2 Bed/1/Bath 832 4 3 Bed/ 2 bath 1,116 DEMOGRAPHICS

11 Total 9,482

1-Miles 3-Miles 5-Miles 2018 Estimate Pop 20,661 130,009 382,893 2010 Census Pop 18,832 118,788 348,369 2018 Estimate HH 5,290 31,578 109,790 2010 Census HH 4,909 29,636 101,146 Median HH Income $24,540 $30,637 $35,052 Per Capita Income $9,318 $11,201 $14,409 Average HH Income $35,734 $41,960 $48,110

#4 ROOSEVELT COTTAGES

OFFERING SUMMARY INVESTMENT OVERVIEW

Marcus & Millichap is pleased to announce the opportunity to acquire 818 N. 39th Avenue --- a recently renovated 11-unit multifamily community located in Phoenix, Arizona. Situated less than a quarter mile south of Interstate-10 (Papago Fwy.), two and a half miles west of Interstate-17 (Black Canyon Fwy.), as well as two and a half miles from the proposed Loop-202 (South Mountain Fwy. opening in 2021), the subject property offers ease of access into all parts of the Valley including Sky Harbor International Airport, Arizona State University, and the southeast Valley. Built in 1951 and fully renovated in 2017, 818 N. 39th Avenue is comprised of recently remodeled one bedroom, two bedroom, and three bedroom apartment homes. Unit upgrades include all new drywall, electric panels, plumbing, roofs, HVACs, water heaters, granite countertops, new cabinets, appliances, sinks, faucets, tile showers, toilets, dual pane windows, entry doors, and lighting fixtures. In addition to the interior upgrades, the owner has also invested in exterior improvements which include block fencing around the perimeter of the property creating individual yard and storage space as well as low maintenance landscaping; what was previously an asphalt driveway has been replaced with attractive modern pavers throughout the project. 818 N. 39th Avenue is located south of Roosevelt Street and west of 35th Avenue in close proximity to popular destinations such as the Maryvale Baseball Stadium (the newly renovated spring training home of the Milwaukee Brewers), Christown Spectrum Mall, Ak-Chin Pavilion, and the entertainment and nightlight of Downtown Phoenix Within a short distance is the I-10 and I-17 business corridors with over 14 million square feet of industrial space; for tenant convenience, the Alta E. Butler Elementary School, Morris K. Udall Middle School and Carl Hayden High School, are all walking distance to their respective campuses.

.

INVESTMENT HIGHLIGHTS

▪ Renovated in 2017 ▪ Excellent mix of one, two and three bedroom units with individual yards.

▪ Sub-metered for water utility. ▪ Pull-In Carports ( selected units) ▪ New Roofs and HVAC units.

▪ New Electric, Plumbing, windows, cabinetry.

5 ROOSEVELT COTTAGES

OFFERING SUMMARY PROPERTY OVERVIEW

Completely renovated 11-unit multifamily community located in Phoenix, Arizona. Built in 1951 and fully renovated in 2017, 818 N. 39th Avenue is comprised of recently remodeled one bedroom, two bedroom, and three bedroom apartment homes. Unit upgrades include all new drywall, electric panels, plumbing, roofs, HVACs, water heaters, granite countertops, new cabinets, appliances, sinks, faucets, tile showers, toilets, dual pane windows, entry doors, and lighting fixtures. In addition to the interior upgrades, the owner has also invested in exterior improvements which include block fencing around the perimeter of the property creating individual yard and storage space as well as low maintenance landscaping; what was previously an asphalt driveway has been replaced withattractive modern pavers throughout the project. 818 N. 39th Avenue is located south of Roosevelt Street and west of 35th Avenue . Within a short distance is the I-10 and I-17 business corridors with over 14 million square feet of industrial space; for tenant convenience

Common Area Amenities

▪ Updated modern paver Driveways ▪ Block Fencing Around Property ▪ New Electric, plumbing ▪ Sub-Metered Water Utility Service

Unit Amenities

▪ Upgrated Bathrooms and kitchens ▪ New windows ( selected units) ▪ New HVAC units ▪ New Granite Countertops ( selected units) ▪ New kitchen Cabinets,

#66 ROOSEVELT COTTAGES

OFFERING SUMMARY PROPERTY SUMMARY

THE OFFERING PROPOSED FINANCING Property ROOSEVELT COTTAGES First Trust Deed Price $1,500,000 Loan Amount $975,000 Property Address 818 North 39th Avenue, Phoenix, AZ Loan Type Proposed New Assessors Parcel Number 106-04-032C Interest Rate 4% SITE DESCRIPTION Amortization 30 Years Number of Units 11 Loan Term 30 Years Number of Buildings 10 Loan to Value 65% Number of Stories 1 Debt Coverage Ratio 1.76 Year Built/Renovated 1951/2017 Rentable Square Feet 9416 Lot Size 48,352 Type of Ownership Fee Simple Parking Non Covered Spaces UTILITIES Water Sub-Metered * Phone Tenant Electric Tenant Gas Tenant CONSTRUCTION Foundation Concrete Framing Wood Exterior Stucco Roof Asphalt MECHANICAL HVAC Individual Wiring Cooper

7 ROOSEVELT COTTAGES

REGIONAL MAP

8 ROOSEVELT COTTAGES

PROPERTY PHOTO

Marcus & Millichap closes more transactions than any other brokerage firm.

129 ROOSEVELT COTTAGES

SITE MAP

10 ROOSEVELT COTTAGES

FINANCIAL ANALYSIS

11 ROOSEVELT COTTAGES

FINANCIAL ANALYSIS RENT ROLL SUMMARY

12 ROOSEVELT COTTAGES

FINANCIAL ANALYSIS RENT ROLL DETAIL

13 ROOSEVELT COTTAGES

FINANCIAL ANALYSIS OPERATING STATEMENT

14 ROOSEVELT COTTAGES

FINANCIAL ANALYSIS NOTES

15 ROOSEVELT COTTAGES

FINANCIAL ANALYSIS PRICING DETAIL

16 ROOSEVELT COTTAGES

MARKET OVERVIEW

17 ROOSEVELT COTTAGES

MARKET OVERVIEW PHOENIX OVERVIEW

The Phoenix metro is often referred to as the Valley of the Sun and consists of Maricopa and Pinal counties. The region is hemmed in by mountains to the north and east. American Indian reservations to the east and south limit development in those directions, leaving the southeastern corridor and western half of the metro as the primary growth areas. The most populous city is Phoenix, which encompasses about 520 square miles, is the capital city and boasts a population of nearly 1.6 million. Interstate 10 is a major trucking route directly connecting the region to Southern California, which is supporting a growing distribution industry. Various rail and air lines connect the metro to cities around the world.

METRO HIGHLIGHTS

EMPLOYMENT GROWTH Job gains will increase faster than the national rate during the next five years, drawing new residents to the metro.

HIGH-TECH MANUFACTURING BASE Intel Corp., Motorola Inc., Honeywell and others have large Phoenix operations, attracting additional companies serving these corporations.

ACTIVE TOURISM INDUSTRY Warm winters and amenities including golf courses and resorts draw vacationers.

1 ROOSEVELT COTTAGES

MARKET OVERVIEW

DEMOGRAPHICS

▪ The metro is expected to add almost 475,000 people over the next five years, resulting in the formation of nearly 200,000 households. SPORTS ▪ A median home price of nearly $275,000 allows 62 percent of households to own a home, which is slightly below the national homeownership rate. ▪ Roughly 29 percent of people age 25 and older hold bachelor’s degrees and 10 percent also obtained a graduate or professional degree.

2018 Population by Age

7% 20% 7% 27% 24% 15% 0-4 YEARS 5-19 YEARS 20-24 YEARS 25-44 YEARS 45-64 YEARS 65+ YEARS EDUCATION

2018 2018 2018 2018 MEDIAN POPULATION: HOUSEHOLDS: MEDIAN AGE: HOUSEHOLD INCOME: 4.7M 1.7M 36.6 $59,300 Growth Growth U.S. Median: U.S. Median: 2018-2023*: 2018-2023*: 10.0% 11.4% 38.0 $58,800

QUALITY OF LIFE Phoenix offers a lower cost of living than other metros its size, a moderate climate and a variety of recreational and cultural options. In addition to outdoor activities, sports enthusiasts can enjoy one of the most complete lineups of major-league teams found in ARTS & ENTERTAINMENT any city, including teams in all four major sports. The Cactus League holds spring training baseball throughout the Valley, and the area has numerous golf courses and tennis courts. Phoenix is home to the world-famous and Frank Lloyd Wright’s Taliesin West. Music venues include Phoenix Symphony Hall and the Orpheum Theatre. Higher-education institutions include Arizona State University, Grand Canyon University and community colleges.

* Forecast Sources: Marcus & Millichap Research Services; BLS; Bureau of Economic Analysis; Experian; Fortune; Moody’s Analytics; U.S. Census Bureau

3 PROPERTYROOSEVELTNAME COTTAGES

MARKETINGDEMOGRAPHICS TEAM Created on July 2019

POPULATION 1 Miles 3 Miles 5 Miles HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles ▪ 2023 Projection ▪ 2018 Estimate Total Population 20,275 127,084 388,907 $200,000 or More 0.48% 0.80% 1.24% ▪ 2018 Estimate $150,000 - $199,000 0.57% 0.70% 1.51% Total Population 20,661 130,009 382,893 $100,000 - $149,000 4.39% 5.03% 6.59% ▪ 2010 Census $75,000 - $99,999 4.66% 6.80% 8.31% Total Population 18,832 118,788 348,369 $50,000 - $74,999 12.85% 15.35% 16.36% ▪ 2000 Census $35,000 - $49,999 14.17% 15.80% 16.06% Total Population 19,255 127,788 337,176 $25,000 - $34,999 12.05% 13.92% 13.36% ▪ Daytime Population $15,000 - $24,999 19.10% 17.48% 15.54% 2018 Estimate 12,982 138,896 495,541 Under $15,000 31.72% 24.11% 21.04% HOUSEHOLDS 1 Miles 3 Miles 5 Miles Average Household Income $35,734 $41,960 $48,110 ▪ 2023 Projection Median Household Income $24,540 $30,637 $35,052 Total Households 5,387 31,809 114,810 Per Capita Income $9,318 $11,201 $14,409 ▪ 2018 Estimate POPULATION PROFILE 1 Miles 3 Miles 5 Miles Total Households 5,290 31,578 109,790 ▪ Population By Age Average (Mean) Household Size 3.78 3.72 3.26 2018 Estimate Total Population 20,661 130,009 382,893 ▪ 2010 Census Under 20 40.53% 36.14% 34.59% Total Households 4,909 29,636 101,146 20 to 34 Years 24.36% 26.77% 25.82% ▪ 2000 Census 35 to 39 Years 7.29% 7.08% 7.39% Total Households 4,880 32,617 100,111 40 to 49 Years 11.31% 11.84% 12.32% Growth 2015-2020 1.83% 0.73% 4.57% 50 to 64 Years 10.83% 11.79% 12.86% HOUSING UNITS 1 Miles 3 Miles 5 Miles Age 65+ 5.68% 6.40% 7.03% ▪ Occupied Units Median Age 25.90 27.12 28.66 2023 Projection 5,387 31,809 114,810 ▪ Population 25+ by Education Level 2018 Estimate 5,818 35,504 124,264 2018 Estimate Population Age 25+ 10,650 70,032 216,578 Owner Occupied 2,004 13,522 45,111 Elementary (0-8) 27.25% 22.52% 16.50% Renter Occupied 3,286 18,056 64,679 Some High School (9-11) 16.39% 17.67% 15.90% Vacant 528 3,926 14,473 High School Graduate (12) 34.20% 30.43% 28.89% ▪ Persons In Units Some College (13-15) 9.49% 14.58% 18.28% 2018 Estimate Total Occupied Units 5,290 31,578 109,790 Associate Degree Only 1.79% 3.30% 5.07% 1 Person Units 17.98% 18.66% 24.98% Bachelors Degree Only 3.13% 4.00% 7.30% 2 Person Units 15.63% 17.53% 21.22% Graduate Degree 0.91% 1.70% 4.11% 3 Person Units 14.44% 13.99% 13.63% ▪ Population by Gender 4 Person Units 16.52% 15.60% 14.07% 2018 Estimate Total Population 20,661 130,009 382,893 5 Person Units 15.33% 13.75% 11.23% Male Population 50.76% 53.13% 51.85% 6+ Person Units 20.11% 20.46% 14.87% Female Population 49.24% 46.87% 48.15%

Source: © 2018 Experian

20 ROOSEVELT COTTAGES

8 DEMOGRAPHICS

21