The Apex on Central

OFFERING MEMORANDUM THE APEX ON CENTRAL

THE APEX ON CENTRAL APARTMENTS 40 E. SUNLAND AVE, PHOENIX, AZ 85040

EXCLUSIVELY LISTED BY NORTHMARQ MULTIFAMILY TABLE OF CONTENTS

Presented by: PROPERTY INFORMATION...... 8 NorthMarq Multifamily RENT COMPARABLES...... 26 Trevor Koskovich Bill Hahn Jesse Hudson PRESIDENT EXECUTIVE VICE PRESIDENT VICE PRESIDENT T 602.952.4040 T 602.952.4041 T 602.952.4042 C 480.227.7420 C 602.418.9578 C 480.437.4953 FINANCIAL ANALYSIS...... 32 [email protected] [email protected] [email protected] SALES COMPARABLES...... 34 Visit us online at northmarq.com LOCATION MAPS...... 44 Phoenix Office 3200 E. CAMELBACK ROAD, SUITE 253 PHOENIX, AZ 85018 602.955.7100

MULTIFAMILY, MANUFACTURED HOUSING & INVESTMENT SALES

THIS DOCUMENT/EMAIL HAS BEEN PREPARED BY NORTHMARQ MULTIFAMILY FOR ADVERTISING AND GENERAL INFORMATION ONLY. NORTHMARQ MULTIFAMILY MAKES NO GUARANTEES, REPRESENTATIONS OR WARRANTIES OF ANY KIND, EXPRESSED OR IMPLIED, REGARDING THE INFORMATION INCLUDING, BUT NOT LIMITED TO, WARRANTIES OF CONTENT, ACCURACY AND RELIABILITY. ANY INTERESTED PARTY SHOULD UNDERTAKE THEIR OWN INQUIRIES AS TO THE ACCURACY OF THE INFORMATION. NORTHMARQ MULTIFAMILY EXCLUDES UNEQUIVOCALLY ALL INFERRED OR IMPLIED TERMS, CONDITIONS AND WARRANTIES ARISING OUT OF THIS DOCUMENT AND EXCLUDES ALL LIABILITY FOR LOSS AND DAMAGES ARISING THERE FROM. THIS PUBLICATION IS THE COPYRIGHTED PROPERTY OF NORTHMARQ MULTIFAMILY AND/OR ITS LICENSOR(S). © 2018. ALL RIGHTS RESERVED. 4 | NORTHMARQ MULTIFAMILY THE APEX ON CENTRAL APARTMENTS | 5 PROPERTY & AREA

PROPERTY SUMMARY

UNIT MIX BREAKDOWN

PROPERTY PHOTOS

FLOOR PLANS

AREA DESCRIPTION PROPERTY SUMMARY

OFFERING MECHANICAL

Price Market Price Heating / Cooling Individual Roof-Mounted Units

Terms Cash - Fee Simple Hot Water Individual Hot Water Heaters

SITE DESCRIPTION Electricity Paid by Tenant

Apartment Community The Apex on Central Water / Sewer Partially Reimbursed by Tenant

40 E. Sunland Ave. Location Phoenix, AZ 85040 CONSTRUCTION

Total Units 117 Style Garden Apartments

Year Built 1988 Foundation Concrete

Net Rentable Square Feet 90,876 Framing Wood

Number of Buildings 8 Exterior Painted Stucco

Number of Stories 2 Roof Built-Up

Sub-market South Phoenix Parking Surface Asphalt

Land Size 3.41 Acres PROPERTY TAXES

Density 34.31 Units Per Acre Number of Parcels 1

117 Covered Spaces Parking Tax Parcel Number 113-42-078 50 Uncovered Spaces

Laundry On-Site Laundry Facility 2017 Property Tax $35,320

8 | NORTHMARQ MULTIFAMILY THE APEX ON CENTRAL APARTMENTS | 9 UNIT MIX BREAKDOWN

# OF % OF SQUARE MARKET MAREKT AVERAGE AVERAGE TOTAL MARKET TOTAL AVERAGE UNIT TYPE TOTAL SF VACANT NON-REV UNITS COMPLEX FEET RENT RENT / SF IN-PLACE RENT RENT / SF RENT RENT 1BD/1BA - Upstairs 17 14.53% 524 8,908 1 $659 $1.26 $618 $1.18 $11,203 $10,514

1BD/1BA - Downstairs 16 13.68% 524 8,384 2 $689 $1.31 $631 $1.20 $11,024 $10,101

2BD/1BA - Upstairs 32 27.35% 876 28,032 $759 $0.87 $715 $0.82 $24,288 $22,873

2BD/1BA - Downstairs 32 27.35% 876 28,032 2 $789 $0.90 $748 $0.85 $25,248 $23,943

2BD/1.5BA - Upstairs 10 8.55% 876 8,760 $839 $0.96 $842 $0.96 $8,390 $8,417

2BD/1.5BA - Downstairs 10 8.55% 876 8,760 1 $869 $0.99 $817 $0.93 $8,690 $8,169 TOTAL / AVERAGE 117 100% 777 90,876 5 1 $759 $0.98 $718 $0.92 $88,843 $84,017

INFORMATION AS OF: 3/31/2018

UNIT MIX BREAKDOWN

2BD/1.5BA 17% 1BD/1BA 28%

2BD/1BA 55% 10 | NORTHMARQ MULTIFAMILY THE APEX ON CENTRAL APARTMENTS | 11 FLOOR PLANS NOT TO SCALE (20) THE PHOENIX (64) THE HACIENDA 2BED / 1.5BA - 876 SF 2BED / 1BA - 876 SF

(33) THE CASITA 1BED / 1BA - 524 SF

12 | NORTHMARQ MULTIFAMILY THE APEX ON CENTRAL APARTMENTS | 13 PROPERTY EXTERIOR PHOTOS

14 | NORTHMARQ MULTIFAMILY THE APEX ON CENTRAL APARTMENTS | 15 AREA INFORMATION AREA DESCRIPTION THE APEX ON CENTRAL AREA BREAKDOWN The Apex on Central is located at 40 East Sunland Avenue in Phoenix, Arizona. Central Avenue is a major north-south thoroughfare running through Downtown Phoenix. Apex on Central is located directly on the path of future Metro light rail expansion, which should add considerable value and marketability to the property upon completion. The South Central Extension will open in 2023 and is planned to extend south to Baseline Road. 202,000 12,000 21,700 32 WORKFORCE BUSINESSES TRAFFIC COUNT AVERAGE AGE The property is in close proximity to several shopping centers, retail and entertainment venues. The main entrance to South Mountain Park, the largest municipal park in SOURCE: COSTAR/ 5-MILE RADIUS SOURCE: COSTAR/ 5-MILE RADIUS SOURCE: COSTAR/ SOUTH ON CENTRAL AVE. SOURCE: COSTAR/ 1-MILE RADIUS the United States, is approximately four miles south of the property on Central Avenue. The central business district including professional sports facilities (Chase Field, home of the Arizona Diamondbacks, and Talking Stick Resort Arena, home of the Phoenix Suns) is approximately four miles to the north of the property on Central Avenue. $179,900 $41,626 9.15% 96% The area has shown recent improvement and upward transition, evidenced by the recently constructed new home subdivision just north of the subject property on Central SF HOME MEDIAN 2017-2022 SUB-MARKET Avenue. Other improvements in the immediate area include numerous strip shopping centers. Situated less than one-half mile from South Mountain High School, Sunland MEDIAN LIST HOUSEHOLD POPULATION OCCUPANCY Elementary School and Roosevelt Elementary School, Apex on Central is convenient to public education and family-oriented recreational activities such as the Valley of PRICE INCOME GROWTH SOURCE: COSTAR/ SOUTH MOUNTAIN the Sun YMCA, two miles away. SOURCE: TRULIA/85040 SOURCE: COSTAR/ 3-MILE RADIUS SOURCE: COSTAR/ 1-MILE RADIUS

SUBMARKET ASKING RENTS INCREASED OVER 14% SINCE 2015

SUBMARKET ASKING RENT PER UNIT SUBMARKET ASKING RENT PER SQUARE FOOT $1.07 $902

$0.13 INCREASE $110 INCREASE

$0.94 $792

16 | NORTHMARQ MULTIFAMILY THE APEX ON CENTRAL APARTMENTS | 17 NUMBER OF JOBS IN THE AREA ±202,000 JOBS DEMOGRAPHICS ±3,600 JOBS WITHIN A ONE MILE RADIUS FROM THE PROPERTY

±35,600 JOBS WITHIN A THREE MILE RADIUS FROM THE PROPERTY

±202,000 JOBS WITHIN A FIVE MILE RADIUS FROM THE PROPERTY RADIUS FROM PROPERTY 1 MILE 3 MILE 5 MILE

Population: ±35,600 2022 Projection 22,496 113,638 219,397 JOBS 2017 Estimate 20,745 105,219 203,917 2010 Census 18,371 95,700 185,793 Growth 2017-2022 8.44% 8.00% 7.59% Growth 2010-2017 12.92% 9.95% 9.75% 2017 Population Hispanic Origin 16,970 71,640 129,986 2017 Population by Race: White 17,102 76,937 151,848 Black 2,100 18,574 31,858 Am. Indian & Alaskan 829 4,059 8,555 Asian 228 2,460 5,407 ±3,600 Hawaiian & Pacific Island 50 365 641 JOBS Other 435 2,824 5,609 U.S. Armed Forces: 0 87 91 Households: 2022 Projection 6,297 33,097 64,910 THE APEX 2017 Estimate 5,811 30,647 60,115 ON CENTRAL 2010 Census 5,156 27,853 54,677 Growth 2017 - 2022 8.36% 7.99% 7.98% 1 MILE Growth 2010 - 2017 12.70% 10.03% 9.95% Owner Occupied 2,902 18,924 32,156 Renter Occupied 2,909 11,724 27,958 2017 Avg Household Income $38,312 $55,502 $54,210 2017 Med Household Income $29,930 $38,145 $36,392 2017 Households by Household Inc: <$25,000 2,441 10,333 21,912 $25,000 - $50,000 1,897 8,110 15,336 $50,000 - $75,000 844 5,087 9,084 $75,000 - $100,000 383 2,812 5,318 $100,000 - $125,000 124 1,836 3,417 3 MILES $125,000 - $150,000 41 909 1,921 $150,000 - $200,000 43 681 1,511 $200,000+ 36 880 1,616

N 18 | NORTHMARQ MULTIFAMILY 5 MILES THE APEX ON CENTRAL APARTMENTS | 19 AREA HIGHLIGHTS

APEX ON CENTRAL IS WITHIN EASY ACCESS TO:

>> Sky Harbor International Airport – one of the top ten busiest airports in the nation with more than 100,000 passengers daily, over 31,000 employees & a daily economic impact of $90 million. Downtown Phoenix >> Downtown Phoenix - #1 employment center with over $3 billion in new development planned or underway.

>> New $1.4 billion Phoenix Metro Light Rail connecting Tempe to Mesa, Downtown & Greater Phoenix.

>> Banner - University Medical Center Phoenix – recently ranked by U.S. News & World Report in the top 50 hospitals nationally for specialty care areas including Geriatrics, Nephrology and Urology.

>> Phoenix Children’s Hospital - 385 bed hospital currently undergoing a $60M expansion project which will accommodate up to 100,000 patients per year (existing capacity is 22,000 patients).

>> Arizona State Hospital - 260 bed facility on a 93 acre campus at 24th Street and Van Buren.

>> Arizona State University Main Campus – largest in the nation with over 100,000 students enrolled.

CENTRAL AVE >> Arizona State University Downtown Campus.

>> SkySong - a 1.2 million square foot mixed-use project with more than 1,000 employees and 50 companies. THE APEX ON CENTRAL >> Mill Avenue District (Downtown Tempe) – unique urban environment with countless commercial, retail & office developments and over 30,000 workers.

>> Tempe Town Lake & Beach Park – over 6 million square feet in new development planned, under construction or recently completed SUNLAND AVE including Marina Heights, a $600M, 20-acre, mixed-use development that will include five office buildings leased by State Farm,

3rd ST

retail amenities and a 10-acre plaza to be constructed over the next four years. N

20 | NORTHMARQ MULTIFAMILY THE APEX ON CENTRAL APARTMENTS | 21 SOUTH CENTRAL TITLE LIGHT RAIL EXTENSION TYPE FACT SHEET / Q2 2018 valleymetro.org/southcentral ROUTE MAP SOUTH CENTRAL 10 Downtown Phoenix Roosevelt St TITLE 1st St 5th St 3rd St 3rd

McKinley St 2nd St 1st Ave 3rd Ave

McKinley Loop 2nd Ave

Central Ave LIGHT RAIL EXTENSION 3rd Avenue SOUTHSOUTH CENTRALCENTRAL Van Buren St 5th Street Loop Adams St Loop TYPETITLE TITLE FACT SHEET / Q2 2018 valleymetro.org/southcentral Je erson St Washington St LIGHTLIGHT RAILRAIL EXTENSIONEXTENSION UPRR ROUTE MAP TYPETYPE Lincoln St FACTFACT SHEET SHEET / / Q2 Q2 2018 2018 Je erson St valleymetro.org/southcentralvalleymetro.org/southcentral St. Anthony’s 10 Downtown Phoenix Buckeye Rd SOUTH CENTRAL LIGHT RAIL Catholic Church Roosevelt St 1st St 5th St 3rd St 3rd

ROUTEMcKinley MAP St 2nd St 1st Ave 3rd Ave

McKinley Loop 2nd Ave Madison Central Ave DowntownDowntown Phoenix Phoenix SOUTH CENTRAL 3rd Avenue 1010 Van Buren St 5th Street Loop Adams St TITLE 4th St Roosevelt St Loop 1st St 1st St 5th St 3rd St 3rd 5th St 3rd St 3rd

McKinley St 2nd St 17 McKinley St 2nd St 1st Ave 1st Ave 3rd Ave 3rd Ave 2nd Ave

McKinley Loop 2nd Ave St. Vincent de Paul Jackson St McKinley Loop Central Ave LIGHT RAIL EXTENSION Je erson St Washington St Central Ave 3rd Avenue UPRR Van Buren St 5th Street LoopLoop AdamsAdams St St TYPE LEGEND Loop Nina Mason Pulliam FACT SHEET / Q2 2018 Valley Metro Rail/Station Proposed Platform Lincoln St Rio Salado Audubon valleymetro.org/southcentral Je erson St Je ersonWashingtonWashington St St St Center South Central Light Rail Extension Proposed Park-and-Ride St. Anthony’s BuckeyeUPRR Rd Capitol / I-10 West Extension Potential Traction Power Sub Catholic Church PROJECTLocally STATUS Preferred Alternative Station Area (TPSS) Lincoln St Salt River Ed Pastor Je ersonJe erson St St St. Anthony’s Madison About the Transit Center Buckeye Rd Catholic Church Broadway Rd • A community office, to provide additional access to the Catholic Church ABOUT THE PROJECT 4th St Travis L. Williams project team, opened in January 2018 with a media event. 17 Family Services St. Vincent de Paul JacksonMadisonMadison St TheProject South CentralCenter Light Rail Extension will connect with the current light rail system in downtown Phoenix and operate south to Baseline Road.

• Phoenix City Council and Valley Metro Rail Board approved 4th St Roeser Rd 4th St The project includes a transfer hub in downtown Phoenix. The expansionproject addsexpansion new stations, in late track2017. and Expansion art elements includes to the aproject. transfer 1717 LEGEND The South Central Light Rail Extension will St. Vincent de Paul Nina Mason Pulliam JacksonJackson St St Valley Metro Rail/Station Proposed Platform connect with the current light rail system hub into downtown Phoenix. Rio Salado Audubon InSouthern January Ave 2016, the Phoenix City Council approved advancing the opening date of the South Central Light Rail Extension from 2034 to 2023. Center South Central Light Rail Extension Proposed Park-and-Ride in downtown Phoenix and operate south to LEGENDLEGEND St. Catherine of • A public art meeting in February 2018 gathered community Nina Mason Pulliam Capitol / I-10 West Extension Potential Traction Power Sub The advancement is funded through Transportation 2050, a 35-year multi-modal transportation plan approved by Phoenix voters in August 2015. Nina Mason Pulliam ProposedProposed Platform Platform BaselineSienna Road. Catholic The project includes a transfer Rio Salado Audubon LocallyValleyValley Preferred MetroMetro Rail/StationRail/Station Alternative Station Area (TPSS) Church input on art concepts and provided another chance for hub in downtown Phoenix. The expansion Salt River Ed PastorCenter SouthSouth CentralCentral LightLight RailRail ExtensionExtension ProposedProposed Park-and-Ride Park-and-Ride The South Central corridor is one of seven project areas identifiedcommunity by the U.S. members Department to meet of Transportation with artists. for inclusion in its Ladders of Transit Center CapitolCapitol // I-10I-10 WestWest ExtensionExtension PotentialPotential Traction Traction Power Power Sub Sub adds new stations, track and art elements to Broadway Rd Locally Preferred Alternative StationStation Area Area (TPSS) (TPSS) Opportunity Transportation Empowerment Pilot (LadderSTEP) program. The LadderSTEP Pilot program aims to build and restore connections, Locally Preferred Alternative SOUTH CENTRAL Salt River the project. • Meeting with residents and business owners will continue TravisSalt River L. Williams Ed Pastor TITLE developBaseline Rd workforce capacity, and catalyze neighborhood revitalization through planned transportation projects Family Services Transit Center LIGHT RAIL EXTENSION throughout the project. Broadway Rd TYPE Center FACT SHEET / Q2 2018 In January 2016, the Phoenix City Council valleymetro.org/southcentral Travis L. Williams Roeser Rd approved advancing the opening date of the • A public meeting on the downtown design was held in April Family Services About the PROJECT STATUS Center • A community office, to provide additional access to the SouthSouth Mountain Central Ave Light Rail Extension from 2034 2018. Center project team, opened in January 2018 with a media event. 7th St 7th Ave Central Ave Central RoeserRoeser RdRd Project to 2023. The advancement is funded through Southern Ave • Phoenix City Council and Valley Metro Rail Board approved The South Central Light Rail Extension will project expansion in late 2017. Expansion includes a transfer Transportation 2050, a 35-year multi-modal St. Catherine of connect with the current light rail system hub into downtown Phoenix. PROJECT SCHEDULE THE APEX in downtown Phoenix and operate south to • A public art meeting in February 2018 gathered community Sienna Catholic ON CENTRAL Baseline Road. The project includes a transfer input on art concepts and provided another chance for transportation plan approved by Phoenix Southern Ave hub in downtown Phoenix. The expansion community members to meet with artists. Church adds new stations, track and art elements to St. Catherine of the project. • Meeting with residents and business owners will continue voters in August 2015. throughout the project. Sienna Catholic In January 2016, the Phoenix City Council approved advancing the opening date of the • A public meeting on the downtown design was held in April Church South Central Light Rail Extension from 2034 2018. 2023 to 2023. The advancement is funded through Transportation 2050, a 35-year multi-modal transportation plan approved by Phoenix Baseline Rd voters in August 2015. 2012 - 2017 2017 - 2019 2019 - 2023 2023 5.5 9 14 Baseline Rd 5.5 9 14 PLANNING DESIGN CONSTRUCTION COMPLETION

South Mountain Ave MILES STATIONS ARTISTS 7th St 7th Ave Central Ave Central

South Mountain Ave NEXT STEPS 7th St 7th Ave South Mountain Ave Ave Central 7th St 7th Ave CEN MILES STATIONS ARTISTS Ave Central 22 | T H NORTHMARQTR MULTIFAMILY THE APEX ON CENTRAL• Survey work,APARTMENTS to gather utility data, will continue through | 2018. 23 U A PROJECT SCHEDULE O L • Three South Central Extension summer interns will be S /valleymetro selected from the South Phoenix community. PROJECT SCHEDULE

L I G N H IO T S /valleymetroconstruction R N 2023 AIL EXTE NEXT STEPS Voter approved Julie Cruz Gilfillan 2023 Julie Smith Downtown - Lincoln 2023 Lincoln – Broadway • Survey work, to gather utility data, will continue through 2018. H CENT 2012 - 2017 2017 - 2019 2019 - 2023T R Community Outreach2023 Coordinator Community Outreach Coordinator U A O L S [email protected] [email protected] /valleymetro O: 602.495.8274 O: 602.744.5563

L I G N H 2012 - 2017 2017 - 2019 2019 - 2023T IO /valleymetroconstruction 2023 S Alexis Hermosillo Flor D. Mason RA N 2012 - 2017 2017 - 2019 2019 - 2023IL EXTE Broadway – Baseline2023 Business Assistance Program • Three South Central Extension summer interns will be PLANNING DESIGN CONSTRUCTIONVoter approved COMPLETION Community Outreach Coordinator Coordinator [email protected] [email protected] selected from the South Phoenix community. O: 602.523.6039 O: 602.708.6417 PLANNING DESIGN CONSTRUCTIONCONSTRUCTION COMPLETIONCOMPLETION

CEN TH TR U A O L S H CEN TH CENTR UT TRA /valleymetro OU AL SO L S L /valleymetro I /valleymetro G N H T IO L S /valleymetroconstruction R L I N A G E N IIL EXT G H ON Voter approvedH T I /valleymetroconstruction T R SIO /valleymetroconstruction R AI ENS A L EXTEN VoterIL approved EXT Voter approved Julie Cruz Gilfillan Julie Smith Downtown - Lincoln Lincoln – Broadway CEN TH TR Community Outreach Coordinator Community Outreach Coordinator U A O L S [email protected] [email protected] /valleymetro O: 602.495.8274 O: 602.744.5563

L I G N H IO T S /valleymetroconstruction Alexis Hermosillo Flor D. Mason R N AIL EXTE Voter approved Broadway – Baseline Business Assistance Program Community Outreach Coordinator Coordinator [email protected] [email protected] O: 602.523.6039 O: 602.708.6417 MARKET OVERVIEW & FINANCIAL ANALYSIS

RENT COMPARABLES

FINANCIAL ANALYSIS

SALES COMPARABLES RENT COMPARABLES

YEAR UNIT SIZE PHYSICAL MARKET RENT/ MARKET NET RENT/ GATED DOG SPORT COVERED KIDS NO. PROPERTY UNITS NET RENT/SF MANAGED BY PROPERTY RUBS GAS ELECTRIC WATER CLUB HOUSE GYM BUILT AVG. SF OCCUPANCY UNIT RENT/SF UNIT ACCESS PARK COURT PARKING PLAYGROUND

S Apex on Central Apex on Central 40 E Sunland Ave. 1988 117 777 96% $759 $0.98 $759 $0.98 Owner 40 E Sunland Ave. Allocation Master Individual Master • Phoenix, AZ 85040 Phoenix, AZ 85040

1 Arbor Village Arbor Village 8028 S Central Ave. 1986 225 575 99% $673 $1.17 $673 $1.17 Owner 8028 S Central Ave. Included None Individual Master • • • • Phoenix, AZ 85042 Phoenix, AZ 85042

2 South Mountain Square South Mountain Square 1630 E Baseline Rd. 1986 117 743 96% $741 $1.00 $741 $1.00 Owner 1630 E Baseline Rd. Included None Individual Master • • • Phoenix, AZ 85042 Phoenix, AZ 85042

3 Puesta Del Sol Puesta Del Sol 8818 S Central Ave. 1986 128 491 100% $673 $1.37 $673 $1.37 Owner 8818 S Central Ave. Included None Individual Master • • Phoenix, AZ 85041 Phoenix, AZ 85041

4 Casa Monte Vista Casa Monte Vista 120 W Dobbins Rd. 1985 45 880 98% $725 $0.82 $725 $0.82 Owner 120 W Dobbins Rd. Included None Individual Master Phoenix, AZ 85041 Phoenix, AZ 85041

5 Corona Del Sol Corona Del Sol 27 E Corona Ave. 1985 64 853 99% $860 $1.01 $860 $1.01 Laughton 27 E Corona Ave. Included None Individual Master • • Phoenix, AZ 85040 Phoenix, AZ 85040

Average 1986 116 708 98% $734 $1.04 $734 $1.04

26 | NORTHMARQ MULTIFAMILY THE APEX ON CENTRAL APARTMENTS | 27 RENT COMPARABLES DETAILS

Apex on Central WALK Arbor Village WALK Casa Monte Vista WALK Corona Del Sol WALK SCORE SCORE SCORE SCORE 40 E Sunland Ave. 8028 S Central Ave. 120 W Dobbins Rd. 27 E Corona Ave. Phoenix, AZ 85040 76 Phoenix, AZ 85042 51 Phoenix, AZ 85041 25 Phoenix, AZ 85040 67

OWNER: Pro Residential Services, Inc. TRANSIT OWNER: FLM Enterpriises TRANSIT OWNER: ZongFu li TRANSIT OWNER: Vaibhav V. Shah TRANSIT SCORE SCORE SCORE SCORE MANAGED BY: Owner MANAGED BY: Owner MANAGED BY: Owner MANAGED BY: Laughton 50 S 46 1 43 4 50 5 MARKET MARKET NET NET MARKET MARKET NET NET MARKET MARKET NET NET MARKET MARKET NET NET UNIT TYPE UNITS SF UNIT TYPE UNITS SF UNIT TYPE UNITS SF UNIT TYPE UNITS SF RENT/UNIT RENT/SF RENT/UNIT RENT/SF RENT/UNIT RENT/SF RENT/UNIT RENT/SF RENT/UNIT RENT/SF RENT/UNIT RENT/SF RENT/UNIT RENT/SF RENT/UNIT RENT/SF 1BD/1BA - Upstairs 17 524 $659 $1.26 $642 $1.23 Studio 56 343 $554 $1.62 $554 $1.62 2BD/1BA 45 880 $725 $0.82 $725 $0.82 2BD/1BA 64 853 $860 $1.01 $860 $1.01 1BD/1BA - Downstairs 16 524 $689 $1.31 $672 $1.28 1BD/1BA 60 540 $669 $1.24 $669 $1.24 TOTAL/AVG. 45 880 $725 $0.82 $725 $0.82 TOTAL/AVG. 64 853 $860 $1.01 $860 $1.01 2BD/1BA - Upstairs 32 876 $759 $0.87 $742 $0.85 1BD/1BA Loft 48 575 $670 $1.17 $670 $1.17 2BD/1BA - Downstairs 32 876 $789 $0.90 $772 $0.88 2BD/2BA 61 822 $790 $0.96 $790 $0.96 2BD/1.5BA - Upstairs 10 876 $839 $0.96 $822 $0.94 TOTAL/AVG. 225 575 $673 $1.17 $673 $1.17 2BD/1.5BA - Downstairs 10 876 $869 $0.99 $852 $0.97 TOTAL/AVG. 117 777 $759 $0.98 $742.68 $0.96

South Mountain Square WALK Puesta Del Sol WALK SCORE SCORE 1630 E Baseline Rd. 8818 S Central Ave. Phoenix, AZ 85042 37 Phoenix, AZ 85041 24

OWNER: Caliber Realty TRANSIT OWNER: Alan Schapker TRANSIT SCORE SCORE MANAGED BY: Owner MANAGED BY: Owner 40 2 43 3 MARKET MARKET NET NET MARKET MARKET NET NET UNIT TYPE UNITS SF UNIT TYPE UNITS SF RENT/UNIT RENT/SF RENT/UNIT RENT/SF RENT/UNIT RENT/SF RENT/UNIT RENT/SF 1BD/1BA 60 603 $675 $1.12 $675 $1.12 Studio 7 300 $485 $1.62 $485 $1.62 2BD/2BA 57 890 $810 $0.91 $810 $0.91 1BD/1BA 96 450 $660 $1.47 $660 $1.47 TOTAL/AVG. 117 743 $741 $1.0 $741 $1.00 2BD/1BA 12 600 $725 $1.21 $725 $1.21 2BD/1BA 13 800 $825 $1.03 $825 $1.03 TOTAL/AVG. 128 491 $673 $1.37 $673 $1.37

28 | NORTHMARQ MULTIFAMILY THE APEX ON CENTRAL APARTMENTS | 29 RENT COMPARABLES MAP

S Apex on Central 40 E Sunland Ave. Phoenix, AZ 85040 5

1 Arbor Village 8028 S Central Ave. Phoenix, AZ 85042

2 South Mountain Square 1630 E Baseline Rd. Phoenix, AZ 85042

3 Puesta Del Sol 8818 S Central Ave. Phoenix, AZ 85041 2

1 4 Casa Monte Vista 120 W Dobbins Rd. Phoenix, AZ 85041

3 5 4 Corona Del Sol 27 E Corona Ave. Phoenix, AZ 85040

30 | NORTHMARQ MULTIFAMILY THE APEX ON CENTRAL APARTMENTS | 31 CURRENT T-1/T-12 OPERATIONS PRO FORMA OPERATIONS

MARKET MONTHLY MARKET MONTHLY OPERATING INCOME UNIT TYPE UNITS SF PRO FORMA OPERATING INCOME UNIT TYPE UNITS SF RENT/UNIT RENT RENT/UNIT RENT Monthly Scheduled Gross Rent $88,843 Monthly Scheduled Gross Rent $88,843 1BD/1BA - Upstairs 17 524 $659 $11,203 1BD/1BA - Upstairs 17 524 $659 $11,203 Annual Scheduled Gross Rent $1,066,116 Annual Scheduled Gross Rent $1,066,116 1BD/1BA - Downstairs 16 524 $689 $11,024 1BD/1BA - Downstairs 16 524 $689 $11,024 Physical Vacancy 4.27% -$45,561 Physical Vacancy 3.00% -$31,983 2BD/1BA - Upstairs 32 876 $759 $24,288 2BD/1BA - Upstairs 32 876 $759 $24,288 Model/Employee Units & Concessions 9.60% -$102,397 2BD/1BA - Downstairs 32 876 $789 $25,248 Model/Employee Units & Concessions 2.00% -$21,322 2BD/1BA - Downstairs 32 876 $789 $25,248 Economic Vacancy 9.95% -$106,031 2BD/1.5BA - Upstairs 10 876 $839 $8,390 Economic Vacancy 4.00% -$42,645 2BD/1.5BA - Upstairs 10 876 $839 $8,390 Net Rental Income $812,127 2BD/1.5BA - Downstairs 10 876 $869 $8,690 Net Rental Income $970,166 2BD/1.5BA - Downstairs 10 876 $869 $8,690 RUBS $74,929 TOTAL/AVG. 117 777 $759 $88,843 RUBS $80,956 TOTAL/AVG. 117 777 $759 $88,843 Laundry Income $8,463 Laundry Income $8,716 Other Income (Late Fees, Pet Fees, Application Fees, Etc.) $65,774 Other Income (Late Fees, Pet Fees, Application Fees, Etc.) $67,748 Gross Operating Income $961,293 Gross Operating Income $1,127,586 OPERATING EXPENSES PER UNIT ANNUALIZED TRAILING ONE MONTH INCOME PRO FORMA OPERATING EXPENSES PER UNIT PRO FORMA NOTES

Property Taxes $302 $35,320 AND TWELVE MONTH EXPENSES Property Taxes $302 $35,320 RENTS Current asking rents. Insurance $42 $4,867 RENTS Insurance $170 $19,890 Maintenance & Repairs $895 $104,767 Current asking rents. Maintenance & Repairs $350 $40,950 PHYSICAL VACANCY Consistent with submarket performance. Turnover $45 $5,208 PHYSICAL VACANCY Turnover $250 $29,250 Rent Roll dated March 31, 2018. RUBS Contract Services $429 $50,189 Contract Services $100 $11,700 Based on $55, $60, and $65 flat fees per unit type. Electricity $113 $13,187 RENTAL INCOME Electricity $116 $13,582 Annualized trailing one month operations as of March 2018. LAUNDRY AND OTHER INCOME Gas $15 $1,766 Gas $16 $1,819 Increased 3% from T-12 income operations. Sewer and Water $609 $71,222 RUBS, LAUNDRY. AND OTHER INCOME Sewer and Water $627 $73,359 Trailing 12 month operations through March 31, 2018. PROPERTY TAXES 2017 Annual property taxes quoted from the Maricopa County Treasurer. Trash $149 $17,452 Omitted Sales Tax Income. Trash $154 $17,976

Other Utilities $31 $3,599 Payroll $1,100 $128,700 UTILITIES PROPERTY TAXES Increased 3% from T-12 operations. Payroll $613 $71,717 2017 Annual property taxes quoted from the Maricopa County Treasurer. Management Fee 3.50%OF GOI $337 $39,466 Management Fee 3.29%OF GOI $270 $31,590 Marketing $100 $11,700 OPERATIONAL EXPENSES OPERATIONAL EXPENSES Based on industry standards of similar properties. Marketing $60 $7,032 Trailing 12 month P&L statement through March 2018. Administrative Expenses $250 $29,250 Omitted Sales Tax Expenses and Asset Management Fees. Administrative Expenses $285 $33,347 Capital Reserve $300 $35,100 TOTAL OPERATING EXPENSES $451,263 TOTAL OPERATING EXPENSES $491,768 Operating Cost Per Unit $3,857 Operating Cost Per Unit $4,203 Operating Cost Per Sq Ft $4.97 Operating Cost Per Sq Ft $5.41 NET OPERATING INCOME $510,030 PRO FORMA NET OPERATING INCOME $635,817 Capital Reserve $300 $35,100 ADJUSTED NET OPERATING INCOME $474,930

32 | NORTHMARQ MULTIFAMILY THE APEX ON CENTRAL APARTMENTS | 33 SALES COMPARABLES

NO. PROPERTY YEAR BUILT UNITS PRICE $/UNIT $/SF SALE DATE 1 S Apex on Central 40 E Sunland Ave. 1988 117 On Market Phoenix, AZ 85040

1 Canyon Pines 17840 N. Black Canyon Hwy. 1983 108 $9,300,000 $86,111 $99.24 2/28/2018 Phoenix, AZ 85053

2 Villa Ventura 7125 N. 19th Ave. 1970 50 $4,500,000 $90,000 $98.90 1/31/2018 5 Phoenix, AZ 85021 2 3 The Fountain Apartments 137 E. Coronado Rd. 1971 43 $4,100,000 $95,349 $155.80 1/19/2018 6 Phoenix, AZ 85004

4 Ventana Palms 7021 W McDowell Rd. 1989 160 $14,250,000 $89,063 $103.92 12/8/2017 Phoenix, AZ 85035 4 3 5 Solano Village 5220 W. Northern Ave. 1979 260 $24,000,000 $92,308 $129.38 10/31/2017 Phoenix, AZ 85301

6 Arcos PHX 1637 E Missouri Ave. 1966 52 $5,475,000 $105,288 $233.46 8/11/2017 Phoenix, AZ 85016 N Average 1978 113 $93,020 $136.78

34 | NORTHMARQ MULTIFAMILY THE APEX ON CENTRAL APARTMENTS | 35 SALES COMPARABLES

Solano Pines LLC Jeff Topp Buyer 510 E Ocotillo Rd. Buyer 4619 St. Brides Pl. Phoenix, AZ 85012 Richmond, BC V7E 5V7, Canada Canyon Pines, LLC Income Property Investors, Inc. Seller 10463 E Corrine Dr. Seller 9370 Sky Park Ct. Scottsdale, AZ 85259 San Diego, CA 92123

Sale Price $9,300,000 Sale Price $4,500,000

Price / Unit $86,111 Price / Unit $90,000

Price / SF $99.24 Price / SF $98.90

Sale Date 2/28/2018 Sale Date 1/31/2018

Submarket Deer Valley Submarket Christown

Location/Property B / B Location/Property B- / C

CANYON PINES Electric Metering Individual VILLA VENTURA Electric Metering Individual 17840 N BLACK CANYON HWY., PHOENIX, AZ 85053 7125 N 19TH AVE., PHOENIX, AZ 85021 Year Built 1983 Year Built 1970

Building S.F. 93,708 Building S.F. 45,500

Total Units 108 Total Units 50 UNIT TYPE UNITS SF RENT/UNIT RENT/SF 1 BD / 1 BA 42 695 $725 $1.04 2 BD / 2 BA 12 895 $820 $0.92 FINANCING FINANCING

2 BD / 2 BA 24 948 $850 $0.90 Lender Opus Bank Lender Private Lender 2 BD / 2 BA 12 988 $875 $0.89 UNIT TYPE UNITS SF RENT/UNIT RENT/SF Loan Amount $6,670,000 Loan Amount $8,000,000 2 BD / 2 BA + Den 18 1,065 $925 $0.87 2 BD / 1 BA 50 910 $800 $0.88 TOTAL/AVG. 108 868 $813 $0.94 Loan-to-Value 71.72% TOTAL/AVG. 50 910 $800 $0.88 Loan-to-Value 177.78%

36 | NORTHMARQ MULTIFAMILY THE APEX ON CENTRAL APARTMENTS | 37 SALES COMPARABLES

Scott D McPherson Domus Multifamily Real Estate Fund Buyer 5525 E Lincoln Dr. Buyer 9595 Wilshire Blvd. Paradise Valley, AZ 85253 Beverly Hills, CA 90212 JMRS OpenPath Investments Seller 1298 Prospect St. Seller 12277 Soaring Way La Jolla, CA 92037 Truckee, CA 96161

Sale Price $4,100,000 Sale Price $14,250,000

Price / Unit $95,349 Price / Unit $89,063

Price / SF $155.80 Price / SF $103.92

Sale Date 1/19/2018 Sale Date 12/8/2017

Submarket Uptown Submarket Maryvale

Location/Property B / C- Location/Property B / B

THE FOUNTAIN Electric Metering Individual VENTANA PALMS Electric Metering Individual

137 E CORONADO RD., PHOENIX, AZ 85004 Year Built 1971 7021 W MCDOWELL RD., PHOENIX, AZ 85035 Year Built 1989

Building S.F. 26,316 Building S.F. 137,120

Total Units 43 Total Units 160

UNIT TYPE UNITS SF RENT/UNIT RENT/SF 1 BD / 1 BA 36 675 $799 $1.18 UNIT TYPE UNITS SF RENT/UNIT RENT/SF FINANCING 1 BD / 1 BA 16 740 $846 $1.14 FINANCING

1 BD / 1 BA 4 525 $799 $1.52 Lender Cobiz Bank 2 BD / 2 BA 36 916 $933 $1.02 Lender - 1 BD / 1 BA 22 580 $1,100 $1.90 2 BD / 2 BA 40 940 $946 $1.01 Loan Amount $3,700,000 Loan Amount - 2 BD / 1 BA 17 675 $899 $1.33 2 BD / 2 BA 32 950 $1,003 $1.06 TOTAL/AVG. 43 612 $993 $1.62 Loan-to-Value 90.24% TOTAL/AVG. 160 857 $911 $1.06 Loan-to-Value -

38 | NORTHMARQ MULTIFAMILY THE APEX ON CENTRAL APARTMENTS | 39 SALES COMPARABLES

Bean Investment Real Estate Andrew Ellis Buyer 1800 SW First Ave. Buyer 4404 The Strand Portland, OR 97201 Manhattan Beach, CA 90266 3rd Avenue Investments LLC Charles Duff Seller 645 E Missouri Ave. Seller 1402 E Caroline Ln. Phoenix, AZ 85012 Tempe, AZ 85284

Sale Price $24,000,000 Sale Price $5,475,000

Price / Unit $92,308 Price / Unit $105,288

Price / SF $129.38 Price / SF $233.46

Sale Date 10/31/2017 Sale Date 8/11/2017

Submarket Glendale Submarket Midtown

Location/Property C+ / B- Location/Property B / C

SOLANO VILLAGE Electric Metering Individual ARCOS PHX Electric Metering Master

5220 W. NORTHERN AVE., GLENDALE, AZ 85301 Year Built 1979 1637 E. MISSOURI AVE., PHOENIX, AZ 85016 Year Built 1966

Building S.F. 185,504 Building S.F. 23,452

UNIT TYPE UNITS SF RENT/UNIT RENT/SF Total Units 260 Total Units 52 STUDIO 29 500 $632 $1.26 STUDIO - W/D 12 500 $775 $1.55 1 BD / 1 BA 102 700 $750 $1.07 FINANCING FINANCING

1 BD / 1 BA - W/D 49 700 $862 $1.23 Lender Walker & Dunlop UNIT TYPE UNITS SF RENT/UNIT RENT/SF Lender Sabal 2 BD / 2 BA 28 1,000 $959 $0.96 STUDIO 41 425 $749 $1.78 Loan Amount $17,910,000 Loan Amount $4,100,000 2 BD / 2 BA - W/D 40 1,000 $1,072 $1.07 1 BD / 1 BA 11 550 $730 $1.30 TOTAL/AVG. 260 714 $831 $1.16 Loan-to-Value 75% TOTAL/AVG. 52 451 $745 $1.68 Loan-to-Value 74.89%

40 | NORTHMARQ MULTIFAMILY THE APEX ON CENTRAL APARTMENTS | 41 LOCATION MAPS

REGIONAL MAP

NEIGHBORHOOD MAP

BIRDS EYE VIEW

PARCEL MAP PHOENIX MSA REGIONAL MAP

N N

44 | NORTHMARQ MULTIFAMILY THE APEX ON CENTRAL APARTMENTS | 45 BIRDS EYE AND PARCEL MAP

Central Avenue THE APEX ON CENTRAL

113-42-078

THE APEX ON CENTRAL

N N 46 | NORTHMARQ MULTIFAMILY THE APEX ON CENTRAL APARTMENTS | 47 MARKET VALUATION

MULTIFAMILY, MANUFACTURED HOUSING & INVESTMENT SALES

NorthMarq Multifamily

Trevor Koskovich Bill Hahn Jesse Hudson PRESIDENT EXECUTIVE VICE PRESIDENT VICE PRESIDENT T 602.952.4040 T 602.952.4041 T 602.952.4042 C 480.227.7420 C 602.418.9578 C 480.437.4953 [email protected] [email protected] [email protected]

NorthMarq Capital

James DuMars Griffin Martin MANAGING DIRECTOR VICE PRESIDENT T 602.508.2206 T 602.508.2203 C 602.714.4202 C 602.527.2354 [email protected] [email protected]

Visit us online at northmarq.com

Phoenix Office 3200 E. CAMELBACK ROAD, SUITE 253 PHOENIX, AZ 85018 602.955.7100