KRAMER's MIDTOWN III 831 Wheeler Avenue • Reno, NV 89502 1 NON - ENDORSEMENT and DISCLAIMER NOTICE

Offering Memorandum

KRAMER'S MIDTOWN III 831 Wheeler Avenue • Reno, NV 89502 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.

KRAMER'S MIDTOWN III Reno, NV ACT ID ZAA0420103

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TABLE OF CONTENTS

SECTION

INVESTMENT OVERVIEW 01 Offering Summary Regional Map Local Map Aerial Photo Floor Plans

FINANCIAL ANALYSIS 02 Rent Roll Summary Rent Roll Detail Operating Statement Notes Pricing Detail Acquisition Financing

MARKET COMPARABLES 03 Sales Comparables Rent Comparables

MARKET OVERVIEW 04 Market Analysis Demographic Analysis

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INVESTMENT OVERVIEW

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OFFERING SUMMARY EXECUTIVE SUMMARY

VITAL DATA Price $1,800,000 CURRENT YEAR 1 Down Payment 35% / $630,000 CAP Rate 5.31% 5.65% MAJOR EMPLOYERS Loan Amount $1,170,000 GRM 12.34 11.76 Net Operating Loan Type Proposed New $95,631 $101,703 Income EMPLOYER # OF EMPLOYEES Net Cash Flow Interest Rate / Amortization 4.25% / 30 Years 4.22% / $26,563 5.18% / $32,634 Peppermill Hotel Casino 4,700 After Debt Service Price/Unit $180,000 Total Return 7.35% / $46,287 8.45% / $53,214 U-Haul 3,102 Price/SF $405.41 VA Sirra Nev Hlth Care Systems 3,000 Number of Units 10 Monarch 2,100 Rentable Square Feet 4,440 Circus Circus Reno Ht & Casino 2,000 Number of Buildings 1 St Marys Health Network 1,800 Number of Stories 2 County of Washoe 1,615 Year Built / Renovated 1984 / 2019 Lot Size 0.21 acre(s) Grand Sierra Resort and Casino 1,525 US Post Office 1,461 UNIT MIX Prime Hlthcare Svcs - Reno LLC 1,370 NUMBER APPROX. UNIT TYPE Club Cal-Neva 1,300 OF UNITS SQUARE FEET Altair Nanotechnologies Inc 1,125 10 1 Bedroom/1 Bathroom 444

DEMOGRAPHICS

10 Total 4,440

1-Miles 3-Miles 5-Miles 2018 Estimate Pop 21,953 130,885 239,249 2010 Census Pop 20,475 121,993 224,140 2018 Estimate HH 10,904 54,723 96,637 2010 Census HH 10,156 51,261 90,946 Median HH Income $32,115 $37,918 $44,906 Per Capita Income $25,472 $25,157 $27,805 Average HH Income $49,872 $58,871 $67,793

#5 KRAMER'S MIDTOWN III

OFFERING SUMMARY INVESTMENT OVERVIEW Kramer's Midtown III is the third property in a series of assets that have been delivered to the market by the ownership, Kramer Properties. Kramer Properties has successfully replicated this concept through their seasoned experience in the development and redevelopment of multifamily assets. Kramer's Midtown III began as an asset that was structurally sound through its brick construction, though had dated interiors and common areas. Kramer Properties took this asset and brought it into the 21st Century by completely modernizing the amenities and living spaces, to fit the demand of the Midtown East tenant profile. Along with the high-end luxury aspect offered by this property, the owner has also installed a set of security features, an amenity unique to an asset of this kind. The entire property is completely gated and enclosed with key-less entries on all gates, unit doors, and common area doors that each tenant receives a personalized entry code for. There is a 24-hour surveillance system covering the entire property along with an exterior light system to completely illuminate the property, giving tenants an increased feeling of comfort in an established residential neighborhood.

The Midtown East submarket where Kramer's Midtown III is located in is one of the best-defining features of this asset. Midtown East is one of the highest demanded locations for rentals in all of Reno. The close proximity to Midtown & Downtown with all of the dining, nightlife, and art & culture gives Kramer's Midtown III all the benefits of the submarket's amenities, while still maintaining a sense of quiet, residential living. The property has a Walk Score of 94, a huge component for the tenant profile who enjoy what the community has to offer. As more and more assets are being brought up to modern standards in Midtown East, it has drawn a higher-paying tenant profile to the submarket. This not only supports the already high achieved rents at Kramer’s Midtown III, but an investor can also expect continued rent growth as this neighborhood continues to thrive.

The full renovation that this asset received has allowed for it to become established as one of the highest achieving rental properties in its submarket. Kramer Properties hired one of the top designers in Reno to assist in the contemporary renovation that extends the theme from the exterior to the interior, with Kramer's Midtown III resembling that of a Las Vegas Resort Cabana. The units were modernized with USB Outlets, upgraded thermostats, and other contemporary features, with each tenant also receiving a designated off-street parking space, providing a strong sense of comfort and luxury for the young, professional tenants that seek to live in Midtown East.

INVESTMENT HIGHLIGHTS

▪ Midtown East, a Strong & Growing Submarket with Continued Expected Rent Growth

▪ Extensive, Contemporary Renovations Throughout ▪ Strong, Stabilized, High-Performing Asset ▪ Offered Free & Clear ▪ Pride of Ownership ▪ Legacy Asset

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OFFERING SUMMARY PROPERTY OVERVIEW

Kramer's Midtown III is an asset that has been kept meticulously well maintained since its construction in 1984. The current owner has taken this immaculate property and has completely modernized it through an extensive, contemporary renovation that has allowed the asset to garner some of the strongest rents in its submarket. The theme has the essence of a Las Vegas Resort Cabana with the modern luxuries and amenities one would expect. The exterior of the property has been uplifted with a designer facade and the cruising-blue color themed branding to accentuate the location's status. The courtyard has become a contemporary lounge with outdoor furniture, a shaded gazebo, a gas barbecue, and a tile, turf, & stone landscape that ties it all together. Continuing further through the property, the unit exteriors include the continuation with the same cruising-blue colored doors, number-pad locks, and modern exterior lights. As you enter the units, the open floor plan features top- upgrades including granite countertops & tile backsplashes, vinyl-wood flooring, and new light fixtures. The kitchen features white cabinetry with brushed nickel hardware and a new stainless-steel, energy efficient appliance set featuring glass top electric range, refrigerator, dishwasher, and microwave. The bathrooms feature over-sized shower heads, new vanities, and sliding glass shower doors. Each unit has been fitted with a brand Common Area Amenities new, stacked washer/dryer combo, which is a key amenity sought after by the tenant profile of Midtown East.

Kramer's Midtown III consists of One- Bedroom units that meet the demand of the young professionals looking ▪ Designated Parking to live in Midtown East. The Midtown East submarket is one of the highest demanded locations for rentals and ▪ Outdoor Lounge w/ Gas BBQ has one of the highest occupancy rates for the entire City of Reno. The urban lifestyle mixed with the arts & ▪ Fully Gated & Well Illuminated culture atmosphere of Midtown has allowed this submarket to flourish as more and more renters seek this ▪ 24-Hour Camera Surveillance location for housing. Overall vacancy in Reno/Sparks is currently 3.31%, with this submarket even tighter at less ▪ Modern-Design Exterior than 2.00%. This has created a highly competitive rental market, allowing owners to push rents consistently.

Unit Amenities

▪ Renovated, Designer Interiors ▪ Vinyl-Wood Plank Flooring ▪ Stainless Steel Appliances & Granite Counters ▪ Washer & Dryer in Each Unit ▪ Key-Less Locks

#77 KRAMER'S MIDTOWN III

OFFERING SUMMARY PROPERTY SUMMARY

THE OFFERING PROPOSED FINANCING Property Kramer's Midtown III First Trust Deed Price $1,800,000 Loan Amount $1,170,000 Property Address 831 Wheeler Avenue, Reno, NV Loan Type Proposed New Assessors Parcel Number 013-112-07 Interest Rate 4.25% Zoning MF30 Amortization 30 Years SITE DESCRIPTION Loan Term 10 Years Number of Units 10 Loan to Value 65% Number of Buildings 1 Debt Coverage Ratio 1.38 Number of Stories 2 Year Built/Renovated 1984 Rentable Square Feet 4,440 Lot Size 0.21 acre(s) Type of Ownership Fee Simple Density MF30 Parking 14 Parking Ratio 1.4:1 Landscaping Mature Topography Flat UTILITIES Water TMWA Electric NV Energy Gas NV Energy CONSTRUCTION Foundation Concrete with Crawlspace Exterior Brick Parking Surface Asphalt Roof Stone Title MECHANICAL HVAC Wall AC & Heat Wiring Copper

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REGIONAL MAP

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LOCAL MAP

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AERIAL PHOTO

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PROPERTY PHOTO

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

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FLOOR PLANS

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FINANCIAL ANALYSIS

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FINANCIAL ANALYSIS RENT ROLL SUMMARY

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FINANCIAL ANALYSIS RENT ROLL DETAIL

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FINANCIAL ANALYSIS OPERATING STATEMENT

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FINANCIAL ANALYSIS PRICING DETAIL

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ACQUISITION FINANCING

MARCUS & MILLICHAP CAPITAL CORPORATION WHY MMCC?

CAPABILITIES Optimum financing solutions to enhance value MMCC—our fully integrated, dedicated financing arm—is committed to providing superior capital market expertise, precisely managed execution, and unparalleled access to capital sources providing the most competitive rates and Our ability to enhance terms. buyer pool by expanding finance options We leverage our prominent capital market relationships with commercial banks, life insurance companies, CMBS, private and public debt/equity funds, Fannie Mae, Freddie Mac and HUD to provide our clients with the greatest range of Our ability to enhance financing options. seller control • Through buyer Our dedicated, knowledgeable experts understand the challenges of financing qualification support and work tirelessly to resolve all potential issues to the benefit of our clients. • Our ability to manage buyers finance expectations • Ability to monitor and manage buyer/lender progress, insuring timely, predictable closings • By relying on a world class Closed 1,678 National platform $6.24 billion Access to set of debt/equity sources debt and equity operating total national more capital financings within the firm’s volume in 2018 sources than and presenting a tightly in 2018 brokerage any other firm underwritten credit file offices in the industry

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MARKET COMPARABLES

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SALES COMPARABLES MAP

KRAMER'S MIDTOWN III (SUBJECT)

1 Kramer's Midtown II

2 Kramer's Midtown

3 630 Sinclair St

4 Broadway Arms

5 1700 Locust St

6 181-185 Hillcrest Drive

SALES COMPARABLES

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SALES COMPARABLES SALES COMPARABLES SALES COMPS AVG

Average Cap Rate

6.0

5.4 Avg. 4.92%

4.8

4.2

3.6

3.0

2.4

1.8

1.2

0.6

0.0 Kramer's Kramer's Kramer's 630 Broadway 1700 181-185 Midtown III Midtown II Midtown Sinclair St Arms Locust St Hillcrest Drive

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SALES COMPARABLES SALES COMPARABLES SALES COMPS AVG

Average Price Per Unit

$200,000

$190,000

$180,000

$170,000 Avg. $152,760

$160,000

$150,000

$140,000

$130,000

$120,000

$110,000

$100,000

$90,000

$80,000

$70,000

$60,000

$50,000

$40,000

$30,000

$20,000

$10,000

$0 Kramer's Kramer's Kramer's 630 Broadway 1700 181-185 Midtown III Midtown II Midtown Sinclair St Arms Locust St Hillcrest Drive

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SALESMARKETING COMPARABLES TEAM

SALES COMPARABLES

KRAMER'S MIDTOWN II KRAMER'S MIDTOWN KRAMER'S MIDTOWN III 217 E Taylor St, Reno, NV, 89502 645 S Virginia St, Reno, NV, 89501 831 Wheeler Avenue, Reno, NV, 89502 1 2

rentpropertyname1 rentpropertyname1 rentpropertyname1

Units Unit Type Units Unit Type Units Unit Type Offering Price: $1,800,000 10 1 Bdr 1 Bath Close Of Escrow: 8/2/2019 8 1 Bdr 1 Bath Close Of Escrow: 10/5/2018 2 Studio 1 Bath Price/Unit: $180,000 Days On Market: 60 12 2 Bdr 1 Bath Days On Market: 60 2 Studio 1 Bath Price/SF: $405.41 Sales Price: $3,475,000 Sales Price: $2,550,000 4 1 Bdr 1 Bath CAP Rate: 5.31% Price/Unit: $173,750 Price/Unit: $170,000 7 2 Bdr 1 Bath GRM: 12.34 Price/SF: $295.80 Price/SF: $274.93 Total No. of Units: 10 CAP Rate: 5.64% CAP Rate: 5.40% Year Built: 1984 Total No. of Units: 20 Total No. of Units: 15 Year Built: 1984 Year Built: 1977

rentpropertyaddress1 rentpropertyaddress1 rentpropertyaddress1 Underwriting Criteria Income $140,366 Expenses $44,734 NOI $95,631 Vacancy ($5,834)

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SALESMARKETING COMPARABLES TEAM

SALES COMPARABLES

630 SINCLAIR ST BROADWAY ARMS 1700 LOCUST ST 630 Sinclair St, Reno, NV, 89501 500 Broadway Blvd, Reno, NV, 89502 1700 Locust St, Reno, NV, 89502

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rentpropertyname1 rentpropertyname1 rentpropertyname1

Units Unit Type Units Unit Type Units Unit Type Close Of Escrow: 10/2/2019 8 1 Bdr 1 Bath Close Of Escrow: 4/2/2018 42 2 Bdr 2 Bath Close Of Escrow: 9/11/2018 4 Studio 1 Bath Sales Price: $1,150,000 Sales Price: $6,000,000 Days On Market: 180 4 1 Bdr 1 Bath Price/Unit: $143,750 Price/Unit: $142,857 Sales Price: $2,450,000 9 2 Bdr 1 Bath Price/SF: $330.08 Price/SF: $133.33 Price/Unit: $144,118 Total No. of Units: 8 CAP Rate: 4.07% Price/SF: $275.78 Year Built: 1964 Total No. of Units: 42 CAP Rate: 5.11% Year Built: 1964 Total No. of Units: 17 Year Built: 1986

rentpropertyaddress1 rentpropertyaddress1 rentpropertyaddress1

NOTES Cap rate based on Marcus & Millichap underwriting.

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SALESMARKETING COMPARABLES TEAM

SALES COMPARABLES

181-185 HILLCREST DRIVE 181 Hillcrest Dr, Reno, NV, 89509

rentpropertyname1 rentpropertyname1 rentpropertyname1

Units Unit Type Close Of Escrow: 12/14/2018 12 1 Bdr 1 Bath Days On Market: 60 Sales Price: $1,705,000 Price/Unit: $142,083 Price/SF: $227.33 CAP Rate: 4.40% Total No. of Units: 12 Year Built: 2005

rentpropertyaddress1 rentpropertyaddress1 rentpropertyaddress1

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8 RENT COMPARABLES MAP

KRAMER'S MIDTOWN III (SUBJECT)

1 Midtown Commons

2 Kramer's Midtown II

3 567 Holcomb Ave

4 Center & Pine Living

5 De Luxe Lofts

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RENT COMPARABLES AVERAGE OCCUPANCY

100 Avg. 96.28% 95 90 85 80 75 70 65 60 55 50 45 40 35 30 25 20 15 10 5 0 Kramer's Midtown Kramer's 567 Holcomb Center & De Luxe Midtown III Commons Midtown II Ave Pine Living Lofts

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RENT COMPARABLES AVERAGE RENT - MULTIFAMILY

1 Bedroom

$2,000 $1,900 Avg. $1,279 $1,800 $1,700 $1,600 $1,500 $1,400 $1,300 $1,200 $1,100 $1,000 $900 $800 $700 $600 $500 $400 $300 $200 $100 $0 Kramer's Midtown Kramer's 567 Holcomb Center & De Luxe Midtown III Commons Midtown II Ave Pine Living Lofts

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RENTMARKETING COMPARABLES TEAM

MIDTOWN COMMONS KRAMER'S MIDTOWN II KRAMER'Srentpropertyname1 MIDTOWN III 700 Forest St, Reno, NV, 89509 217 E Taylor St, Reno, NV, 89502 831 Wheeler Avenue, Reno, NV, 89502 rentpropertyaddress1 1 2

rentpropertyname1 rentpropertyname1 rentpropertyname1

Unit Type Units SF Rent Rent/SF Unit Type Units SF Rent Rent/SF Unit Type Units SF Rent Rent/SF $895- 1 Bdr 1 Bath 10 444 $1,216 $2.74 Studio 1 Bath 22 400-495 $2.06 1 Bdr 1 Bath 6 488 $1,095 $2.24 $950 $1,295- Total/Avg. 10 444 $1,216 $2.74 2 Bdr 1 Bath 14 747 $1.77 1 Bdr 1 Bath 34 575 $1,095 $1.90 $1,345 $1,295- 2 Bdr 1 Bath 6 908-1,000 $1.41 Total/Avg. 20 669 $1,253 $1.87 $1,395 Total/Avg. 62 566 $1,058 $1.87

YEAR BUILT: 1984 OCCUPANCY: 98% | YEAR BUILT: 1952 OCCUPANCY: 95% | YEAR BUILT: 1984 NOTES NOTES Specials: none offered. RUBS: no. Garage/Storage: no. $40 rent for off- Specials: none offered. RUBS: no. Garage/Storage: no. Pet Policy: $400 rentpropertyaddress1 street parking rentpropertyaddress1 deposit, $25 rent. Tenantsrentpropertyaddress1 pay E/G. MGT pays W/S/T. Pet Policy: $25 rent, $300 deposit. Rent includes all basic utilities. Amenities: On-site laundry, off-street parking, luxury amenities, fire pit, Amenities: Carpet, Courtyard, Fitness Center, Garden, Granite Counters, barbeque, courtyard. Grill, Hardwood Floors, Heating, Kitchen, Laundry Facilities, Range, Recycling, Smoke-Free. Renovations: building exterior and community area renovations, new appliances, stone countertops, key-less locks, vinyl-wood flooring, light Renovations: Planning to update the numbers around the building and fixtures, updated cabinets, and hardware. adding decorative accents on aged/worn brick.

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RENTMARKETING COMPARABLES TEAM

567 HOLCOMB AVE CENTER & PINE LIVING DE LUXE LOFTS 567 Holcomb Ave, Reno, NV, 89502 200 S Center St, Reno, NV, 89501 1690 S Wells Ave, Reno, NV, 89502

3 4 5

rentpropertyname1 rentpropertyname1 rentpropertyname1

Unit Type Units SF Rent Rent/SF Unit Type Units SF Rent Rent/SF Unit Type Units SF Rent Rent/SF $1,100- $975- $1,250- 1 Bdr 1 Bath 12 700 $1.68 Studio 1 Bath 2 350-400 $2.83 Studio 1 Bath 4 636-673 $1.93 $1,250 $1,150 $1,275 $1,299- Total/Avg. 12 700 $1,175 $1.68 1 Bdr 1 Bath 20 550-600 $2.37 1 Bdr 1 Bath 15 900 $1,675 $1.86 $1,425 2 Bdr 1 Bath 2 730 $1,590 $2.18 1 Bdr 1 Bath 4 1,099 $1,650 $1.50 Total/Avg. 24 571 $1,356 $2.37 1 Bdr 1 Bath 2 1,104 $1,650 $1.49 Total/Avg. 25 909 $1,603 $1.76

OCCUPANCY: 92% | YEAR BUILT: 1986 OCCUPANCY: 100% | YEAR BUILT: 2017 OCCUPANCY: 96% | YEAR BUILT: 1950 NOTES NOTES NOTES Specials: none offered. RUBS: no. Garage/Storage: no. Pet Policy: $25 Specials: none. RUBS: N/A. Garage/Storage: $35 parking fee. Pet Policy: Specials: none offered. RUBS: $15 Flat. Garage/Storage: $55-$75 5'x10' rent, deposit upon owner'srentpropertyaddress1 request. Tenants pay E/G. MGT pays W/S/T. N/A. Tenants pay E/G.rentpropertyaddress1 MGT pays W/S/T. Rent information collected from - 8'x10'. Pet Policy: Uponrentpropertyaddress1 owner's approval with deposit. MGT pays online sources. E/G/W/S/T. Amenities: Washer/Dryer in unit, off-street parking. Amenities: Garage parking, on-site laundry. Amenities: On-site laundry, all utilities included. Renovations: Property underwent modern renovations to fit the Midtown appeal. Renovations: Property underwent extensive, contemporary renovations. Renovations: 13 units are newly constructed townhome & studio units. Received full contemporary renovations.

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MARKET OVERVIEW

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MARKET OVERVIEW RENO-SPARKS-CARSON CITY OVERVIEW

Once dominated by government and gambling, the Reno-Sparks- Carson City metro has diversified into a growing high-tech manufacturing and logistics hub in western Nevada, boosting employment opportunities. A lower cost of living and doing business than nearby California is drawing companies as well as residents. Over the next five years, more than 40,000 additional people are expected in the metro, which encompasses Washoe and Storey counties as well as Carson City, home to the state’s capital. The eastern shore of Lake Tahoe is included in the metro, contributing to an active outdoor recreation segment. A diverse array of activities that include gambling and cultural amenities keep the tourism industry growing.

METRO HIGHLIGHTS

LOWER BUSINESS COSTS More affordable costs and a business-friendly climate attract firms including Switch Data, Apple, Google and Tesla to the region.

STRONG EMPLOYMENT GAINS Employment growth is expected to rise at a rate nearly double that of the nation over the next five years as companies move to and expand locally.

TOURISM Special events such as the National Championship Air Races, as well as the region’s many lakes, rivers, casinos, conventions and ski resorts, draw visitors and residents to the metro.

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MARKET OVERVIEW

ECONOMY ▪ The region is becoming an important center for distribution and industrial expansion as all West Coast markets can be reached in one day ▪ A pro-business environment and its proximity to the California border are attracting a diverse array of firms seeking to lower costs. Apple, Amazon and Jet.com have opened facilities in the metro. Tesla’s battery Gigafactory is also based locally. ▪ Redeveloping unique neighborhoods such as the Brewery District and Mid-Town are drawing business, tourists and residents. ▪ Revenue from gambling in Washoe County has increased annually since 2013. MAJOR AREA EMPLOYERS

University of Nevada, Reno Renown Health Peppermill Reno International Game Technology Atlantis Casino Resort Eldorado Resort Casino Saint Mary's Regional Medical Center Carson Tahoe Health State of Nevada * Forecast Western Nevada College

SHARE OF 2018 TOTAL EMPLOYMENT

9% 13% 15% 15% 4% MANUFACTURING PROFESSIONAL AND GOVERNMENT LEISURE AND HOSPITALITY FINANCIAL ACTIVITIES BUSINESS SERVICES

22% 7% + 11% 1% 3% TRADE, TRANSPORTATION CONSTRUCTION EDUCATION AND INFORMATION OTHER SERVICES AND UTILITIES HEALTH SERVICES

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MARKET OVERVIEW

DEMOGRAPHICS

▪ The local population is projected to exceed 564,000 people in 2023 after adding roughly 40,200 residents, a growth rate that is nearly double the national level. SPORTS ▪ Household growth of 9.4 percent is expected by the end of 2023 as nearly 20,000 households are created, generating the need for additional housing options. Home prices remain well below large California markets. ▪ Nearly 63 percent of residents age 25 and older have completed some college, creating a skilled workforce. 2018 Population by Age

6% 18% 7% 26% 27% 16% 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: 524K 202K 38.9 $59,400 Growth Growth U.S. Median: U.S. Median: 2018-2023*: 2018-2023*: 7.7% 9.4% 38.0 $58,800

QUALITY OF LIFE Outdoor activities abound in the metro with golf courses, parks and trails for biking, running and hiking. The region’s rivers, lakes and reservoir offer numerous water sports, while the mountains provide a scenic backdrop and snow in the winter. Cultural venues include the Nevada Museum of Art, Discovery Children’s Museum, Bruka Theater, ARTS & ENTERTAINMENT Fleishman Planetarium, the Pioneer Center for the Performing Arts and a host of other museums, galleries and festivals. More than 50,000 students attend local institutions of higher education, including the University of Nevada Reno, Truckee Meadows Community College, Western Nevada College and Sierra Nevada College. These institutions also contain cultural and sports venues. Sporting opportunities include the PGA Reno-Tahoe Open, a 9,000-seat stadium hosting the Reno Aces AAA baseball team and the FC 1868 minor league soccer team.

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

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MARKETINGDEMOGRAPHICS TEAM Created on November 2019

POPULATION 1 Miles 3 Miles 5 Miles HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles ▪ 2023 Projection ▪ 2018 Estimate Total Population 22,102 131,473 244,977 $200,000 or More 2.38% 3.10% 3.74% ▪ 2018 Estimate $150,000 - $199,000 1.49% 2.27% 3.20% Total Population 21,953 130,885 239,249 $100,000 - $149,000 5.45% 8.06% 10.26% ▪ 2010 Census $75,000 - $99,999 7.24% 8.86% 10.97% Total Population 20,475 121,993 224,140 $50,000 - $74,999 13.48% 15.64% 17.75% ▪ 2000 Census $35,000 - $49,999 16.09% 15.47% 15.08% Total Population 20,419 123,413 214,707 $25,000 - $34,999 13.80% 12.59% 11.52% ▪ Daytime Population $15,000 - $24,999 18.99% 16.19% 13.58% 2018 Estimate 48,903 217,082 331,363 Under $15,000 21.10% 17.82% 13.91% HOUSEHOLDS 1 Miles 3 Miles 5 Miles Average Household Income $49,872 $58,871 $67,793 ▪ 2023 Projection Median Household Income $32,115 $37,918 $44,906 Total Households 11,355 56,231 100,967 Per Capita Income $25,472 $25,157 $27,805 ▪ 2018 Estimate POPULATION PROFILE 1 Miles 3 Miles 5 Miles Total Households 10,904 54,723 96,637 ▪ Population By Age Average (Mean) Household Size 1.95 2.31 2.41 2018 Estimate Total Population 21,953 130,885 239,249 ▪ 2010 Census Under 20 17.61% 23.66% 23.80% Total Households 10,156 51,261 90,946 20 to 34 Years 25.50% 26.41% 25.14% ▪ 2000 Census 35 to 39 Years 6.62% 5.99% 5.92% Total Households 9,677 51,790 87,264 40 to 49 Years 13.09% 11.06% 11.27% Growth 2015-2020 4.14% 2.76% 4.48% 50 to 64 Years 21.85% 17.85% 18.50% HOUSING UNITS 1 Miles 3 Miles 5 Miles Age 65+ 15.33% 15.01% 15.35% ▪ Occupied Units Median Age 40.21 34.94 35.81 2023 Projection 11,355 56,231 100,967 ▪ Population 25+ by Education Level 2018 Estimate 12,559 60,886 105,512 2018 Estimate Population Age 25+ 16,715 88,459 162,930 Owner Occupied 2,301 17,816 40,700 Elementary (0-8) 5.40% 7.31% 5.87% Renter Occupied 8,603 36,907 55,937 Some High School (9-11) 12.74% 11.21% 9.42% Vacant 1,655 6,164 8,875 High School Graduate (12) 25.77% 25.89% 25.82% ▪ Persons In Units Some College (13-15) 23.80% 23.86% 25.00% 2018 Estimate Total Occupied Units 10,904 54,723 96,637 Associate Degree Only 7.69% 5.88% 6.67% 1 Person Units 49.95% 38.39% 33.10% Bachelors Degree Only 14.73% 15.12% 16.27% 2 Person Units 28.73% 29.72% 32.04% Graduate Degree 7.76% 8.91% 9.50% 3 Person Units 9.49% 12.93% 14.23% ▪ Population by Gender 4 Person Units 5.70% 9.56% 10.69% 2018 Estimate Total Population 21,953 130,885 239,249 5 Person Units 3.11% 4.90% 5.38% Male Population 54.56% 51.77% 50.72% 6+ Person Units 3.02% 4.49% 4.56% Female Population 45.44% 48.23% 49.28%

36 PROPERTYKRAMER'S MIDTOWNNAME III

MARKETINGDEMOGRAPHICS TEAM

Population Race and Ethnicity In 2018, the population in your selected geography is 21,953. The The current year racial makeup of your selected area is as follows: population has changed by 7.51% since 2000. It is estimated that the 70.04% White, 3.50% Black, 0.87% Native American and 5.46% population in your area will be 22,102.00 five years from now, which Asian/Pacific Islander. Compare these to US averages which are: represents a change of 0.68% from the current year. The current 70.20% White, 12.89% Black, 0.19% Native American and 5.59% population is 54.56% male and 45.44% female. The median age of Asian/Pacific Islander. People of Hispanic origin are counted the population in your area is 40.21, compare this to the US average independently of race. which is 37.95. The population density in your area is 6,978.20 people per square mile. People of Hispanic origin make up 29.75% of the current year population in your selected area. Compare this to the US average of 18.01%.

Households Housing There are currently 10,904 households in your selected geography. The median housing value in your area was $234,233 in 2018, The number of households has changed by 12.68% since 2000. It is compare this to the US average of $201,842. In 2000, there were estimated that the number of households in your area will be 11,355 2,449 owner occupied housing units in your area and there were five years from now, which represents a change of 4.14% from the 7,228 renter occupied housing units in your area. The median rent at current year. The average household size in your area is 1.95 persons. the time was $515.

Income Employment In 2018, the median household income for your selected geography is In 2018, there are 23,109 employees in your selected area, this is also $32,115, compare this to the US average which is currently $58,754. known as the daytime population. The 2000 Census revealed that The median household income for your area has changed by 6.64% 48.75% of employees are employed in white-collar occupations in since 2000. It is estimated that the median household income in your this geography, and 51.26% are employed in blue-collar occupations. area will be $35,556 five years from now, which represents a change In 2018, unemployment in this area is 6.07%. In 2000, the average of 10.71% from the current year. time traveled to work was 19.00 minutes.

The current year per capita income in your area is $25,472, compare this to the US average, which is $32,356. The current year average household income in your area is $49,872, compare this to the US average which is $84,609.

37 KRAMER'S MIDTOWN III

8 DEMOGRAPHICS