KRAMER's MIDTOWN 645 South Virginia Street • Reno, NV 89501 1 NON - ENDORSEMENT and DISCLAIMER NOTICE

Offering Memorandum

KRAMER'S MIDTOWN 645 South Virginia Street • Reno, NV 89501 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. Â© 2017 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 Reno, NV ACT ID Y0420017

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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

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INVESTMENT OVERVIEW

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OFFERING SUMMARY EXECUTIVE SUMMARY

VITAL DATA Price $2,400,000 CURRENT YEAR 1 MAJOR EMPLOYERS Down Payment 100% / $2,400,000 CAP Rate 5.06% 5.53% Loan Type All Cash GRM 13.54 12.62 Net Operating Price/Unit $160,000 $121,376 $132,786 Income EMPLOYER # OF EMPLOYEES Net Cash Flow Price/SF $214.65 5.06% / $121,376 5.53% / $132,786 U-Haul 4,982 After Debt Service Number of Units 15 Total Return 5.06% / $121,376 5.53% / $132,786 VA Sirra Nev Hlth Care Systems 3,000 Rentable Square Feet 11,181 Peppermill Hotel Casino 2,250 Number of Buildings One Circus Circus Reno Ht & Casino 2,000 Number of Stories Three St Marys Health Network 1,800 Year Built / Renovated 1977 / 2016 County of Washoe 1,615 Lot Size 0.17 acre(s) Grand Sierra Resort and Casino 1,529 Grand Sierra Resort Corp 1,500 US Post Office 1,461 UNIT MIX Saint Marys Regional Med Ctr 1,370 NUMBER APPROX. UNIT TYPE Club Cal-Neva 1,300 OF UNITS SQUARE FEET Atlantis Casino Resort 1,000 2 Efficiency 213 2 Studio 600 4 1 Bedroom 814 7 2 Bedroom 900 DEMOGRAPHICS 15 Total 11,181

1-Miles 3-Miles 5-Miles 2016 Estimate Pop 22,376 130,658 232,280 2016 Census Pop 21,037 123,265 219,658 2016 Estimate HH 11,900 54,679 93,472 2016 Census HH 11,143 51,919 88,962 Median HH Income $27,539 $35,196 $41,515 Per Capita Income $24,259 $23,341 $25,446 Average HH Income $44,293 $54,490 $62,161

#5 KRAMER'S MIDTOWN

OFFERING SUMMARY INVESTMENT OVERVIEW

The City of Reno benefits from the state of Nevada having no personal income tax, no state tax, no franchise tax, no inventory tax and no gift tax. Large, publicly-traded companies have moved their operations to the Reno area for these tax benefits. With a current student population of 22,800, the University of Nevada, Reno has experienced unprecedented growth and is now projected to enroll 30,000 students by the year 2020. Quality of life, employment opportunities, and higher education continue to propel the northern Nevada economy.

Northern Nevada continues to experience an economic boom with Tesla (6,500 jobs projected) and Switch Digital (2,500 jobs projected) leading the charge. The Tahoe- Reno Industrial Center (TRI-Center) now has over 125 companies that have relocated to the Center. News of Google partnering with a yet to be determined auto manufacturer bringing 25,000 new jobs has been rumored, these factors will continue to propel the Reno economy for the foreseeable future.

The investment appeal of Kramer’s Midtown is driven by free-and-clear delivery, stable operations with rent increases and major, modern renovations throughout. The rent comparables will show that this asset garners some of the highest rents for the Midtown area. With all that has been done to the property, there remains upside potential: further rent increases could be realized by obtaining a higher utility bill-back percentage, another strategy would be to install washers and dryers in every unit. Other opportunities to enhance the property involve constructing garages for all fifteen units as well as adding an on-site fitness facility. All of this would allow an investor to capitalize on an already well-performing asset.

INVESTMENT HIGHLIGHTS

. Offered Free and Clear; Buyer Can Place New Debt . Substantial Modern Renovations Done in 2016 Complement Midtown’s Upbeat Reputation

. Premier Location in the heart of Reno's thriving Midtown District

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OFFERING SUMMARY PROPERTY OVERVIEW

Kramer's Midtown is located in the heart of Reno's thriving Midtown District. The property was completely renovated in 2016 to emulate Midtown's atmosphere. The vibrancy of the neighborhood is reflected in the property's colors. The exterior demanded substantial effort and major changes in order to complement Midtown's upbeat reputation. In addition to its appearance, Kramer's includes newly renovated interiors, state-of-the-art security, a pleasing landscape, gated access, a laundry facility and off-street parking. The property features a mix of efficient units, studios, one-bedroom/one-bath units and two-bedroom/two-bath units. Kitchens include granite countertops, wood-plank floors, stainless steel appliances, barn-style doors, insulated windows and decorative window coverings.

Kramer's provides twenty onsite parking spaces; half of them are covered. An elevator, secure access, and full- time management also accompany the property.

The location is ideal for shopping, dining and entertainment. Just steps from your apartment you will find Great Full Common Area Amenities Gardens, Michael's Deli, Newman's Deli, Two Chicks, Mari Chuy's Mexican Kitchen, Truckee Bagel Company and numerous quaint shops and eateries. . Newly Installed Secured Access The City bus lines stop in front of Kramer's with access throughout the City and University. Less than three . Secure Bike Storage Area minutes away are three of Reno's largest employers; St. Mary's Health Systems, the City of Reno, and Wells . Carports and Open Parking Fargo. Kramer's is also in close proximity to the Nevada Museum of Art, the Pioneer Center for the Performing . Laundry Room Arts, the Bruka Theater and the famous Downtown River Walk. . Close to many Great Restaurants and Downtown

Unit Amenities

. Granite Countertops Throughout . Wood Plank Flooring . Brushed Nickle Finishes and Hardware . Sleek Looking, Modern Barn Doors . Updated Windows

#77 KRAMER'S MIDTOWN

OFFERING SUMMARY PROPERTY SUMMARY

THE OFFERING PROPOSED FINANCING Property Kramer's Midtown First Trust Deed Price $2,400,000 Loan Type All Cash Property Address 645 South Virginia Street, Reno, NV Debt Coverage Ratio Assessors Parcel Number 011-226-41 Zoning MUSV SITE DESCRIPTION Number of Units 15 Number of Buildings One Number of Stories Three Year Built/Renovated 1977/2016 Rentable Square Feet 11181 Lot Size 0.17 acre(s) Type of Ownership Fee Simple Density High Parking 20 Spaces Parking Ratio 1.33:1 Landscaping Mature Topography Flat UTILITIES Water TMWA Phone AT&T; Charter Electric NV Energy Gas NV Energy CONSTRUCTION Foundation Concrete Framing Wood Frame Exterior Brick and Wood Parking Surface Concrete Roof Flat MECHANICAL HVAC Wall Unit Heating & Air Conditioning Wiring Copper

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REGIONAL MAP

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LOCAL MAP

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PROPERTY PHOTO

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

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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 MMCC—our fully integrated, dedicated financing arm—is committed to enhance value providing superior capital market expertise, precisely managed execution, and unparalleled access to capital sources providing the most Our ability to enhance buyer competitive rates and terms. 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, Our ability to enhance Fannie Mae, Freddie Mac and HUD to provide our clients with the seller control greatest range of • Through buyer financing options. qualification support • Our ability to manage buyers Our dedicated, knowledgeable experts understand the challenges of finance expectations financing and work tirelessly to resolve all potential issues to the benefit of our • Ability to monitor and manage buyer/lender progress, clients. insuring timely, predictable closings • By relying on a world class Closed 1,651 National platform $5.1 billion total Access to more set of debt/equity sources debt and equity operating national capital sources financings within the firm’s volume in 2016 than any other and presenting a tightly in 2016 brokerage offices firm in the underwritten credit file industry

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MARKET COMPARABLES

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SALES COMPARABLES MAP

KRAMER'S MIDTOWN (SUBJECT) Lancaster Townhouse 1 Apartments 2 Caliente Crossing

3 1415-1425 N Virginia St.

4 444 Cheney St

SALES COMPARABLES

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SALES COMPARABLES SALES COMPS AVG SALES COMPARABLES

Average Cap Rate

6.0

5.4 Avg. 4.98%

4.8

4.2

3.6

3.0

2.4

1.8

1.2

0.6

0.0 Kramer's Lancaster Caliente 1415-1425 N 444 Midtown Townhouse Crossing Virginia Cheney St Apartments St. Average Price Per Square Foot Average Price Per Unit

$300.00 $200,000

$270.00 $180,000

$240.00 $160,000 Avg. $135,961 $210.00 $140,000 Avg. $170.90 $180.00 $120,000

$150.00 $100,000

$120.00 $80,000

$90.00 $60,000

$60.00 $40,000

$30.00 $20,000

$0.00 $0 Kramer's Lancaster Caliente 1415-1425 N 444 Kramer's Lancaster Caliente 1415-1425 N 444 Midtown Townhouse Crossing Virginia Cheney St Midtown Townhouse Crossing Virginia Cheney St Apartments St. Apartments St.

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SALESMARKETING COMPARABLES TEAM

SALES COMPARABLES

LANCASTER TOWNHOUSE APARTMENTS CALIENTE CROSSING KRAMER'S MIDTOWN 155 Lancaster Dr, Reno, NV, 89506 65 Caliente St, Reno, NV, 89509 645 South Virginia Street, Reno, NV, 89501 1 2

rentpropertyname1 rentpropertyname1 rentpropertyname1

Units Unit Type Units Unit Type Units Unit Type Offering Price: $2,400,000 2 Efficiency Close Of Escrow: 5/31/2017 14 Bdr Bath Sales Price: $1,475,000 5 Studio 1 Bath Price/Unit: $160,000 2 Studio Days On Market: 222 Price/Unit: $134,091 4 1 Bdr 1 Bath Price/SF: $214.65 4 1 Bdr Sales Price: $2,385,000 Price/SF: $234.24 1 2 Bdr 1 Bath CAP Rate: 5.06% 7 2 Bdr Price/Unit: $170,357 CAP Rate: 5.00% GRM: 13.54 Price/SF: $93.98 Total No. of Units: 11 Total No. of Units: 15 CAP Rate: 5.93% Year Built: 1932 Year Built: 1977 GRM: 11.95 Total No. of Units: 14 Year Built: 2006

rentpropertyaddress1 rentpropertyaddress1 rentpropertyaddress1 Underwriting Criteria Income $179,828 Expenses $58,453 NOI $121,376 Vacancy ($7,090)

NOTES NOTES Offered free and clear; buyer can place new debt. Amenities: Storage, laundry room, carports and on-site parking, all units have been rehabbed; midtown area is a highly desirable market with rising rents.

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SALESMARKETING COMPARABLES TEAM

SALES COMPARABLES

1415-1425 N VIRGINIA ST. 444 CHENEY ST 1415 N Virginia St, Reno, NV, 89503 444 Cheney St, Reno, NV, 89502

3 4

rentpropertyname1 rentpropertyname1 rentpropertyname1

Units Unit Type Units Unit Type Close Of Escrow: 3/30/2017 24 1 Bdr 1 Bath Close Of Escrow: 9/20/2016 10 1 Bdr 1 Bath Sales Price: $2,995,545 Sales Price: $1,375,000 2 2 Bdr 1 Bath Price/Unit: $124,814 Price/Unit: $114,583 Price/SF: $220.26 Price/SF: $135.10 CAP Rate: 4.25% CAP Rate: 4.75% Total No. of Units: 24 Total No. of Units: 12 Year Built: 1942 Year Built: 1972

rentpropertyaddress1 rentpropertyaddress1 rentpropertyaddress1

NOTES Buyer was a local investor from Reno, Nevada, placed $995,545 down and financed $2,000,000 from Heritage Bank of Nevada. CAP Rate was confirmed with the Listing Broker.

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8 RENT COMPARABLES MAP

KRAMER'S MIDTOWN (SUBJECT)

1 Midtown Commons

2 De Luxe Lofts

3 Caliente Crossing

4 Forest Apartments

5 720 Plumas

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RENT COMPARABLES AVERAGE RENT - MULTIFAMILY

2 Bedroom Efficiencies

$2,000 $2,000

$1,800 $1,800

$1,600 $1,600

$1,400 $1,400

$1,200 $1,200

$1,000 $1,000 Avg. $868

$800 $800

$600 $600

$400 $400

$200 $200

$0 $0 Kramer's Midtown Caliente Kramer's Midtown De Luxe Caliente Forest 720 Plumas Midtown Commons Crossing Midtown Commons Lofts Crossing Apartments

1 Bedroom

$2,000

$1,800

$1,600

$1,400 Avg. $1,138 $1,200

$1,000

$800

$600

$400

$200

$0 Kramer's Midtown De Luxe Caliente Forest 720 Plumas Midtown Commons Lofts Crossing Apartments

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RENTMARKETING COMPARABLES TEAM

MIDTOWN COMMONS DE LUXE LOFTS KRAMER'Srentpropertyname1 MIDTOWN 700 Forest Street, Reno, NV, 89509 1690 S Wells Ave, Reno, NV, 89502 645 South Virginia Street, Reno, NV, 89501 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 $825- $1,375- Efficiency 2 213 $773 $3.63 Studio 1 Bath 10 400-500 $1.92 Studio 1 Bath 4 636-673 $2.16 $900 $1,450 Studio 2 600 $795 $1.33 $1,200- 1 Bdr 1 Bath 18 500 $900 $1.80 1 Bdr 1 Bath 12 900-1,100 $1.24 $1,275 1 Bdr 4 814 $993 $1.22 1 Bdr 1 Bath 22 600 $1,100 $1.83 $1,375- 1 Bdr 1 Bath 2 1,006-1,150 $1.35 2 Bdr 7 900 $1,095 $1.22 $1,525 2 Bdr 1 Bath 8 850 $1,295 $1.52 $1,525- 1 Bdr 1 Bath 10 1,197 $1.29 Total/Avg. 15 745 $985 $1.32 2 Bdr 1.5 Bath 4 1,100 $1,400 $1.27 $1,575 Total/Avg. 28 1,027 $1,389 $1.35 Total/Avg. 62 611 $1,048 $1.71

OCCUPANCY: 100% | YEAR BUILT: 1977 / 2016 OCCUPANCY: 100% | YEAR BUILT: 1952 OCCUPANCY: 100% | YEAR BUILT: 1950 NOTES NOTES NOTES Concessions: None. Newly updated with granite counters, wood flooring, Concessions: none. Owner pays all utilities including gas and electric. Pets: Concessions: none. Pets accepted upon owner's approval with deposit. brushed nickel finishes, rentpropertyaddress1new windows. $300 deposit, $25 rent;rentpropertyaddress1 on site laundry, carports, on site rental office. Amenities: on site laundry,rentpropertyaddress1 utilities included (gas and electricity also), one year lease. 13 units are newly constructed townhome and studio units.

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RENTMARKETING COMPARABLES TEAM

CALIENTE CROSSING FOREST APARTMENTS 720 PLUMAS 65 Caliente St, Reno, NV, 89509 715 Forest St, Reno, NV, 89509 720 Plumas St, Reno, NV, 89509

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 $625- Studio 1 Bath 6 300-450 $1.83 Studio 1 Bath 6 342 $650 $1.90 Studio 1 Bath 6 342 $725 $2.12 $750 $735- 1 Bdr 1 Bath 1 900 $1,250 $1.39 1 Bdr 1 Bath 1 900 $1,275 $1.42 1 Bdr 1 Bath 4 550 $1.40 $800 Total/Avg. 7 422 $736 $1.74 Total/Avg. 7 422 $804 $1.91 2 Bdr 1 Bath 1 1,078 $1,325 $1.23 Total/Avg. 11 503 $775 $1.54

YEAR BUILT: 1932 OCCUPANCY: 100% | YEAR BUILT: 2003 OCCUPANCY: 100% | YEAR BUILT: 1918 NOTES NOTES NOTES Concessions: none. Pets allowed with $300 deposit, $25 rent. On site Concessions: none. Pets not allowed. Amenities: Extremely well maintained Concessions: Pets allowed with $300 deposit, $25 rent. Amenities: on site laundry, off site parking,rentpropertyaddress1 bbq and picnic area. property, secured access,rentpropertyaddress1 reserved parking. Upgraded units with granite laundry room, bbq and picnicrentpropertyaddress1 areas, central courtyard, on and off site countertops and stainless steel appliances, on site laundry. parking.