Bowling Green, Kentucky 42101

BOWLING GREEN, KENTUCKY 42101

2555 SCOTT COOK, CPM®, AMO®, REALTOR® Camino Del Rio South President Suite 201 619-354-8404 San Diego, CA 9210 1 [email protected] LOCATION OVERVIEW

ABOUT BOWLING GREEN

Welcome to Bowling Green, KY!

A thriving university town with a progressive population helps drive Bowling Green’s ability to entertain. As the 3rd largest city in Kentucky and the dining and shopping mecca for a dozen surrounding counties, Bowling Green is brimming with restaurant and splurging options. Bowling Green is located just 60 miles north of Nashville and 110 miles south of Louisville.

Bowling Green is bustling with a diverse economy, award-winning schools, affordable housing, and a low crime rate. First-class attractions that tell our stories, natural wonders that inspire exploration, and neighboring and historic communities that invite you in are all right here.

Bowling Green is home to many world-renowned businesses, industries and attractions including:

GM Corvette Assembly Plant Bowling Green Ballpark - Home of the Bowling Green Hot Rods Fruit of the Loom World Headquarters Beech Bend Amusement Park and The National Corvette Museum Raceway Mammoth Cave National Park (nearby) Houchens Industries Lost River Cave and Valley

2 Mammoth Cave National Park Mammoth Cave National Park preserves the cave system and a part of the Green River valley and hilly country of south central Kentucky. This is the world’s longest known cave system, with more than 400 miles (643 km) explored. Early guide Stephen Bishop called the cave a «grand, gloomy and peculiar place,» but its vast chambers and complex labyrinths have earned its name - Mammoth.

Hot Rod’s Class A Affiliate Baseball team

3 CORVETTE MUSEUM America’s Sports Car… an exciting legend produced only in Bowling Green, Kentucky. The Museum features over 80 Corvettes in periodic settings, including mint classics, one-of-a- kind prototypes and modern-day wonders of engineering and design. Test your knowledge at interactive trivia kiosks, and don’t miss the chance to try a Corvette on for size in our lobby where we have a 2015 Stingray waiting for you. Displays continually rotate so no two visits are the same. Round out your visit with a souvenir from the Corvette Store, grab a bite to eat in the Corvette Cafe, and race over to the NCM Motorsports Park to spectate or take a lap!

4 SKyPAC Since a renovation of Bowling Green’s beloved Capitol Theater on Fountain Square was completed in 1981, the Capitol, along with Van Meter Auditorium at Western Kentucky University, stood as Bowling Green’s primary venues for major performing arts activities, especially those touring from outside the region. However, by the end of the next decade it was becoming clear that the Capitol had built an audience for larger productions than Bowling Green could accommodate.

A group of concerned civic leaders, not only interested in creating a new, larger venue for the Performing Arts, but also creating an attraction that would help stimulate downtown development, sought support for such a center. In July 2000, Warren County created the Southern Kentucky Performing Arts Center, Inc. (SKyPAC) to accept a $6.7 million dollar appropriation from the Commonwealth of Kentucky designed to fund early architectural and feasibility studies, acquire land, hire architects and fund early operating costs.

5 HISTORIC RAILPARK MUSEUM Located on a major north-south corridor between two major cities, Bowling Green has a long history tied to the evolution of transportation in Kentucky; from steamboats traveling the Barren River to the railroad, and eventually the current interstate systems. The current L&N Depot was built in 1925 to replace an older station. At one time, over 20 trains per day departed the current site, providing a hub for Bowling Green’s economic foundation and exposure to travelers between Louisville, KY and Nashville, TN.

6 LOCATION OVERVIEW

Bowling Green, Kentucky Population 2019

Bowling Green is a city located in the state of Kentucky. It is located in Warren County, where it is the county seat. It is the third-most populous city in Kentucky, falling only behind Lexington and Louisville. Bowling Green is home to many major manufacturers, including Fruit of the Loom and the Bowling Green Assembly Plant that assembles Chevy Corvettes. The city is also the site of Western Kentucky University, the second largest public university in Kentucky. In the past, the city has been named as one of the best places in the nation for retirement.

Population Size and Density in Bowling Green Bowling Green had a population of 58,067 at the time of the 2010 census. Recent estimates show that the number of residents has since risen to 67,924. Bowling Green has a total area of 35.6 square miles, and it has a population density of 1,392 people per square mile.

Bowling Green Demographics

A little over three-quarters of Bowling Green’s population is white. The remainder of the population is 13.9% black, 4.2% Asian, 2.16% is another race, and 2.7% are mixed race. Native Americans and Pacific Islanders each make up less than 1% of the total population, while 6.5% of the population is of Hispanic or Latino origin.

People that are 18 to 24 make up the largest age group, accounting for 28% of the population. Over 20% of the population is under the age of 18, while 10.6% are at least 65 years old.

There are more women than men, with women making up 51.7% of Bowling Green’s population. Approximately 19.4% of the city’s residents live below the federal poverty line.

7 Population Growth

The educational and job opportunities available in Bowling Green have contributed to its steady growth since its founding. Recent estimates show that the city’s population is up 12.3% since the last census taken in 2010, indicating that growth in Bowling Green is showing no sign of slowing down in the years ahead.

YEAR POPULATION GROWTH ANNUAL GROWTH RATE

2017 67,067 1,528 2,33% 2016 65,539 1,413 2,20% 2015 64,126 1,385 2,21% 2014 62,741 754 1,22% 2013 61,987 1,269 2,09% 2012 60,718 883 1,48% 2011 59,835 597 1,01% 2010 59,238 9,942 1,85% 2000 49,296 8,655 1,95% 1990 40,450 191 0,05% 1980 40,450 3,745 0,98% 1970 36,705 8,367 2,62% 1960 28,338 9,991 4,44% 1950 18,347 3,762 2,32 1940 14,585 2,237 1,68 1930 12,348 2,710 2,51

8 Population Growth

RACE POPULATION

White 47,472 Black or African American 8,813 Asian 3,136 Some Other Race 2,431 Two or More Races 2,125

Native Hawaiian and 245 Other Pacific Islander

American Indian 80 and Alaska Native

Bowling Green Population White Two or More Races Pyramid 2019 Black or African Native Hawaiian American and Other Pacific Islander Asian American Indian Some Other and Alaska Native Race

Data via US Census (2017 ACS 5-Year Survey): Table B03002

Data via US Census (2017 ACS 5-Year Survey): Table S0101

9 Bowling Green Adults Bowling Green Sex Ratio

32,686 31,616

50.83% 49.17%

Bowling Green Age Dependency

47.7 16.5 31.3

Age Dependency Ratio Old Age Dependency Ratio Child Dependency Ratio

Bowling Green Renter vs Bowling Green Owner Occupied by Household Type Household Types

Married Type Owner Renter Married 61.5% 38.5% All All 39.4% 60.6% Female Female 30.1% 69.9% Non Family Non family 26.6% 73.4% Male Male 25.5% 74.5%

0 25 50 75 100 Owner Renter 39.4% Data via US Census (2017 ACS 5-Year Survey): Table S1101 Rate of Home Ownership

10 Bowling Green Households by Type

TYPE COUNT AVERAGE SIZE OWNED

All 23,810 2.4 39.4 Non family 10,891 1.44 26.6 3.1 Married 8,456 3.22 61.5 Average Family Size Female 3,261 3.1 30.1 Male 1,202 3.49 25.5 2.4 Bowling Green Households Average Household Size

Married 7.8

Male Unmarried (Opposite Sex) Female

Non family 0.5

Unmarried (Same Sex)

Bowling Green Employment by Age 63% Labor Force Participation 58.3% Employment Rate 7.2% Unemployment Rate

11 REGIONAL REAL ESTATE INFORMATION

Bowling Green Market

Overview

366 228 7.9% 1.0% 12 Mo. Delivered 12 Mo. Absorption Vacancy 12 Mo. Asking Units Units Rate Rent Growth

12 Bowling Green’s low business costs have attracted many national employers including Chevrolet (Corvette), Fruit of the Loom, and JM Smuckers to the metro. Bowling Green is also home to Western Kentucky University, one of the state’s largest universities and a solid demanddriver for multifamily units in the market. Developers have ramped up construction recently. With close to 1,200 units currently underway, supply is expected to grow by nearly 25% over the next few years. This is continuing the strong development climate seen in recent years. Partly due to elevated deliveries, both occupancies and rent growth have softened and sit below Bowling Green’s historical average. This market typically witnesses one or two trades in a given year, with a historical sales volume of around $5 million.

Key indicators

Under Vacancy Asking Effective Absorption Delivered Current Quarter Units Constr Rate Rent Rent Units Units Units

4 & 5 Star 1,413 10.7% $878 $862 22 0 1,035 3 Star 3,155 7.3% $748 $740 0 0 205 1 & 2 Star 863 5.7% $731 $726 0 0 0 Market 5,431 7.9% $783 $773 22 0 1,240

12 Historical Forecast Annual Trends Peak When Trough Month Average Average

Vacancy Change 2.2% 6.6% 8.7% 10.2% 2007 Q1 4.3% (YOY)

Absorption Units 228 140 354 615 2013 Q2 (46)

Delivered Units 366 157 395 665 2013 Q3 0 Demolished 0 0 9 0 2019 Q1 0 Units Asking Rent 1.0% 1.1% 0.7% 7.0% 2007 Q1 -3.2% Growth (YOY) Effective Rent 1.2% 1.1% 0.7% 6.7% 2006 Q4 -3.2% Growth (YOY) Sales Volume $12.7 M $5.1 M N/A $27.8 M 2015 Q1 $0

13 Vacancies

Vacancies are currently above the historical average, though this is largely due to an uptick in development instead of a slowdown in demand. Over the past two years inventory has grown by close to 10%. But improving economic conditions and favorable renter demographics have generated steady multifamily demand in Bowling Green. New deliveres have leased well, averaging absorption close to 10 units per month during lease-up. However, most of these projects have come in the form of smaller, sub-100-unit properties. The last major delivery over 100 units was in 2018, when the 120-unit The Drake was built. The Drake charges rents nearly 20% above other 4 & 5 Star offerings in the metro.

With a large construction pipeline, vacancies could remain elevated over the next few quarters as new projects continue to go through lease-up.

Western Kentucky University’s presence in the market is a solid demand-driver for multifamily demand. Roughly 70% of the 20,000-person student body lives off campus, expanding the potential renter cohort in the metro. The university is also the largest employer in Bowling Green, with almost 5,000 on its payroll. This market also contains a high-share of manufacturing and logistics jobs, which employ roughly 35% of the workforce. Wages in these sectors are typically lower than the median household income, pushing many of these workers to be renters. Absorption, net deliveries & vacancy

14 Vacancy rate

Vacancy by bedroom

15 Rent

Rent growth has softened in response to the increase in development. At 1.0%, rents are rising at a slower pace than Bowling Green’s historical average. Rents in Bowling Green, which currently sit near $780/unit, have grown at a moderate pace, achieving cumulative gains close to 15% since 2010.

Rents for new assets average $0.90/SF, a modest increase over other 4 & 5 Star offerings in the metro.

One of the most expensive properties here is Chandler Park Southwest Apartments, which charges close to $0.95/SF ($1,050/month). The property, built in 2013, includes one- and two- bedroom units, ranging in rent from $800/month to $1,200/month. The property is within walking distance to the Greenwood Mall and the metro’s main retail attractions. Bowling Green’s 4 & 5 Star inventory has almost doubled this cycle, and rents for these units hold a 15% premium over 3 Star assets.

Daily asking rent per sf

16 Market rent per unit & rent growth

Market rent per unit by bedroom

17 Construction

The construction pipeline remains active with close to 1,200 units, representing nearly 25% of the metro’s inventory, under construction. One of the largest projects that is currently underway is Chandler Real Estate’s The Hub, a 4 Star, 600-unit property. This projects is expected to cost $200 million and will include hotel, office, and retail space. Chandler also developed Chandler Park in 2005, a project that now includes 400 apartments, hotels, and medical facilities. SH Management is currently constructing a 288-unit community at 308 Old Scottsville Road. The apartment building will include a dog park, courtyard, and hiking trails, and the developers plan on finishing up construction in 2019. Inventory is expected to increase by more than 15% in 2019. This has the potential to place short-term supply-side pressures on the market’s fundamentals as these properties go through lease-up.

Apartment inventory is clustered around the Western Kentucky University and I-65 and skews toward newer garden-style and mid-rise properties. The apartment stock here is new but lacks the bells and whistles that come standard in more urban markets. A growing pool of renters has helped kickstart new construction, and the market has increased its footprint by nearly 40% this cycle, one of the largest increases in the country.

Deliveries & demolitions

18 Under Construction Properties

7 1,240 22,8% 177 Properties Units Percent of Inventory Avg. No. Units

Under construction properties

19 Key indicators

Property Name/ Comp- Developer/ Rating Units Stories Start Address lete Owner

The Hub Jun- Dec- Chandler Real 1  600 - 101 Lovers Ln 2018 2019 Estate, Inc

The Muse Bowling Oct- Aug- The Vecino 2 Green  219 - 2018 2019 Group 1601 Russellville Rd The Dark Phase II May- May- 3 726 Cumberland  144 4 - 2017 2019 Trace Rd

Overlook Triple Crown Mar- May- 4 Apartments  128 - Property 2018 2019 8500 Nashville Rd Management The Southern Sep- Sep- The Southern 5 Phase II  72 2 2018 2019 Partners, LLC 441 Bourbon St

700 State Street May- May- 6  61 - - 700 State St 2017 2019

Traditions’ Landing Nov- May- 7  16 - - 147 Hunt Village Ln 2016 2019

20 Sales

Due to the small inventory base, this submarket typically witnesses minimal trading, with an average annual sales volume around $5 million. However, investment activity was strong in 2018. Both volume and unit pricing were well above Bowling Green’s historical average. There were a few notable transactions that helped fuel this surge last year. In July 2018, a 60-unit building at 249 Greenwood Flats traded for $5.4 million, or about $89,000/unit. This building was built in 2018, with average rents of $0.90/SF.

Two buildings traded here for a total of $4.4 million in 2017. In January 2017, Chandler Property Management purchased Scottscroft Manor, a 36-unit 3 Star property, for $2.3 million, or $63,000/ unit. This property was built in 2006, with asking rents of $625/month. In February 2017, Western Estates, a 45-unit, 3 Star property, sold a private buyer for $2.2 million, or about $48,000/unit. sales activity has been mute since.

Sales volume & market sale price per unit

21 Sales Past 12 Months

3 $59 $3.6 30.9% Sale Avg. Price/Unit Average Average Comparables (thous.) Price (mil.) Vacancy at Sale

Sale comparable locations

22 Sale comparables summary statistics

Sales Attributes Low Average Median High

Sale Price $2,450,100 $3,550,033 $2,850,000 $5,350,000

Price Per Unit $33,529 $58,839 $68,058 $89,166

Cap Rate 6.0% 6.0% 6.0% 6.0%

Vacancy Rate at Sale 0% 30.9% 5.6% 88.3%

Time Since Sale in Months 9.2 10.4 10.8 11.0 Property Attributes Low Average Median High

Property Size in Units 36 60 60 85

Number of Floors 2 2 2 3

Average Unit SF 571 817 920 961

Year Built 1994 2006 2006 2018

Star Rating    

23 Recent significant sales

Property Information Sale Information

Property Name/ Yr Sale Price/ Price/ Rating Units Vacancy Price Address Built Date Unit SF

249 Greenwood Flats 7/5/ $ 1  2018 60 88.3% $89,166 $79 249 Greenwood 2018 5,350,000 Ln

Warren Heights 5/10/ $ 2  1994 8536 0% $33,529 $36 6550 2018 2,850,000 Louisville Rd

Scottscroft Manor 5/16/ $ 3  2006 4 5.6% $68,058 $70 1329 2018 2,450,100 Scottsville Rd

24 Economy

Bowling Green is the third most-populous metro in the state, behind Louisville and Lexington, and is the economic center of South Central Kentucky. The market is bisected by I-65 and is a mid-point between Louisville and Nashville. Employment gains have bounced around the national average for much of the past five years, pushing gross employment well above its pre- recession peak. Further, the population has been growing faster than what is historically typical, helping fuel additional growth in commercial real estate sectors.

The metro’s leading industries are trade and manufacturing, collectively employing about 35% of the total workforce. Some of the largest employers in the area are Houchens Industries (5,000 employees), Dart Container Corporation (1,600), and Bowling Green Metalforming (1,600). Additionally, GM has a sizable presence here with a factory that primarily manufactures Corvettes. In fact, the manufacturing sector has grown by nearly 5% over the past 12 months. With the presence of Western Kentucky University (4,000), Commonwealth Health Corporation (3,400), and The Medical Center of Bowling Green (2,500), education/health services is also an important industry in Bowling Green. Western Kentucky is the third-largest public university in the state, with more than 20,000 students enrolled.

At roughly $50,000, median household incomes in Bowling Green are in line with the state- wide average. However, median home values of $150,000 and apartment rents of $750 make this market more affordable than many surrounding metros.

25 Bowling green employment by industry in thousands

Current Jobs Current Growth 10 Yr Historical 5 Yr Forecast NAICS Industry Jobs LQ Market US Market US Market US

Manufacturing 14 2042.3 4.67% 1.67% 3.60% 0.39% 0.58% -1.45%

Trade, Transportation 14 996.9 3.49% 1.10% 1.10% 0.99% 1.18% 0.15% and Utilities

Retail Trade 9 1092.6 4.27% 0.21% 1.53% 0.77% 1.37% 0.19%

Financial Activities 3 676.5 -2.10% 1.39 -0.84% 0.83% 1.34% 0.64%

Government 12 1019.8 -1.17% 0.52% 0.79% -0.03% 0.10% 0.55%

Natural Resources, Mining and 3 778.8 1.58% 4.32% 0.18% 1.31% 1.63% 1.04% Construction

Education and 11 889.4 2.22% 2.17% 2.01% 2.10% 1.50% 0.97% Health Services

Professional and 9 834.2 1.27% 2.72% 3.22% 2.36% 1.84% 1.20% Business Services

Information 1 400 -3.28% 0.31% -4.08% -0.15% 0.71% 0.00%

Leisure and 9 1081.6 1.08% 2.42% 3.26% 2.36% 1.80% 1.02% Hospitality

Other Services 2 574.5 -3.03% 1.33% 0.86% 0.86% 0.88% 0.20% Total Employment 78 1.0 1.70% 1.86% 1.86% 1.25% 1.13% 0.56%

Source: Moody’s Analytics LQ = Location Quotient

26 Year over year job growth

Source: Moody’s Analytics

Bowling green employment by industry in thousands

Current Current Current Forecast Change Demographic Level Growth Change (5 Yrs) Category Metro U.S. Metro U.S. Metro US Metro US

Population 177,955 328,729,875 0.9% 0.6% 1.3% 0.7% 0.9% 0.6%

Households 70,232 126,750,609 1.4% 1.1% 1.4% 0.8% 1.3% 1.0%

Median Household $49,609 $64,320 3.8% 3.7% 1.9% 2.3% 3.1% 2.8% Income

Labor Force 84,905 163,304 1.9% 1.1% 0.8% 0.6% 1.2% 0.8%

Unemployment 4.0% 3.8% 0.4% -0.2% -0.7% -0.5% - -

Source: Moody’s Analytics

27 Population growth Labor force growth

Income growth Source: Moody’s Analytics

28 Submarkets Bowling green submarkets

29 Submarket inventory

Inventory Inventory Under Construction Submarket Bldgs Units % Market Rank Bldgs Units Percent Rank Bldgs Units Percent Rank

Bowling 7 320 100% 1 1 58 18.1% 1 2 661 206.6% 1 Green

Submarket rent

Asking Rents Effective Rents Submarket Per Unit Per SF Rank Yr. Growth Per Unit Per SF Rank Yr. Growth Concession Rank

Bowling $801 $0.84 1 2.0% $774 $0.81 1 -1.2% 3.4% 1 Green

Submarket vacancy & absorption

Vacancy 12 Month Absorption Submarket Units Percent Rank Units % of Inv Rank Construct. Ratio

Bowling Green 40 12.5% 1 29 9.2% 1 2.0

30 Appendix Overall supply & demand

Inventory Absorption Year Construction Units Growth % Growth Units % of Inv Ratio

2023 7,257 257 3.7% 264 3.6% 1.0

2022 7,000 317 4.7% 319 4.6% 1.0

2021 6,683 366 5.8% 319 4.8% 1.1

2020 6,317 73 1.2% 490 7.8% 0.1

2019 6,244 813 15.0% 375 6.0% 2.2

YTD 5,431 0 0% 78 1.4% 0

2018 5,431 366 7.2% 216 4.0% 1.7

2017 5,065 126 2.6% 63 1.2% 2.0

2016 4,939 160 3.3% 90 1.8% 1.8

2015 4,779 196 4.3% 230 4.8% 0.9

2014 4,583 30 0.7% 70 1.5% 0.4

2013 4,553 442 10.8% 399 8.8% 1.1

2012 4,111 303 8.0% 321 7.8% 0.9

2011 3,808 20 0.5% 47 1.2% 0.4

2010 3,788 72 1.9% 78 2.1% 0.9

2009 3,716 0 0% 21 0.6% 0

2008 3,716 0 0% (25) -0.7% 0

2007 3,716 358 10.7% 282 7.6% 1.3

31 4 & 5 star supply & demand

Inventory Absorption Year Construction Units Growth % Growth Units % of Inv Ratio

2023 3,227 268 9.1% 254 7.9% 1.1

2022 2,959 267 9.9% 272 9.2% 1.0

2021 2,692 376 16.2% 312 11.6% 1.2

2020 2,316 84 3.8% 483 20.9% 0.2

2019 2,232 819 58.0% 364 16.3% 2.3

YTD 1,413 0 0% 67 4.7% 0

2018 1,413 243 20.8% 114 8.1% 2.1

2017 1,170 82 7.5% 70 6.0% 1.2

2016 1,088 0 0% (11) -1.0% 0

2015 1,088 196 22.0% 192 17.6% 1.0

2014 892 0 0% 15 1.7% 0

2013 892 274 44.3% 251 28.1% 1.1

2012 618 0 0% 14 2.3% 0

2011 618 20 3.3% 23 3.7% 0.9

2010 598 0 0% 5 0.8% 0

2009 598 0 0% 8 1.3% 0

2008 598 0 0% (3) -0.5% 0

2007 598 0 0% (21) -3.5% 0

32 3 star supply & demand

Inventory Absorption Year Construction Units Growth % Growth Units % of Inv Ratio

2023 3,216 0 0% 18 0.6% 0

2022 3,216 61 1.9% 55 1.7% 1.1

2021 3,155 0 0% 14 0.4% 0

2020 3,155 0 0% 13 0.4% 0

2019 3,155 0 0% 14 0.4% 0

YTD 3,155 0 0% 10 0.3% 0

2018 3,155 60 1.9% 33 1.0% 1.8

2017 3,095 12 0.4% (13) -0.4% -

2016 3,083 160 5.5% 103 3.3% 1.6

2015 2,923 0 0% 21 0.7% 0

2014 2,923 0 0% 23 0.8% 0

2013 2,923 168 6.1% 150 5.1% 1.1

2012 2,755 255 10.2% 253 9.2% 1.0

2011 2,500 0 0% (7) -0.3% 0

2010 2,500 0 0% 31 1.2% 0

2009 2,500 0 0% 9 0.4% 0

2008 2,500 0 0% (15) -0.6% 0

2007 2,500 310 14.2% 270 10.8% 1.1

33 1 & 2 star supply & demand

Inventory Absorption Year Construction Units Growth % Growth Units % of Inv Ratio

2023 814 (11) -1.3% (8) -1.0% 1.4

2022 825 (11) -1.3% (8) -1.0% 1.4

2021 836 (10) -1.2% (7) -0.8% 1.4

2020 846 (11) -1.3% (6) -0.7% 1.8

2019 857 (6) -0.7% (3) -0.4% 2.0

YTD 863 0 0% 1 0.1% 0

2018 863 63 7.9% 69 8.0% 0.9

2017 800 32 4.2% 6 0.8% 5.3

2016 768 0 0% (2) -0.3% 0

2015 768 0 0% 17 2.2% 0

2014 768 30 4.1% 32 4.2% 0.9

2013 738 0 0% (2) -0.3% 0

2012 738 48 7.0% 54 7.3% 0.9

2011 690 0 0% 31 4.5% 0

2010 690 72 11.7% 42 6.1% 1.7

2009 618 0 0% 4 0.6% 0

2008 618 0 0% (7) -1.1% 0

2007 618 48 8.4% 33 5.3% 1.5

34 Overall vacancy & rent

Vacancy Market Rent Market Rent Year Ppts Per Per % Ppts Per Per Units Percent Chg Unit SF Growth Chg Unit SF

2023 542 7.5% (0.4) $807 $0.83 0.4% (0.3) $797 $0.82

2022 552 7.9% (0.4) $803 $0.83 0.7% 0.4 $794 $0.82

2021 554 8.3% 0.2 $798 $0.82 0.3% (0.5) $789 $0.81

2020 508 8.0% (6.8) $795 $0.82 0.7% 0.5 $786 $0.81

2019 925 14.8% 5.5 $790 $0.81 0.2% (1.6) $781 $0.81

YTD 429 7.9% (1.4) $783 $0.81 -0.6% (2.4) $773 $0.80

2018 506 9.3% 2.3 $788 $0.81 1.8% 1.6 $781 $0.81

2017 356 7.0% 1.1 $774 $0.80 0.2% (2.7) $761 $0.79

2016 294 5.9% 1.3 $772 $0.80 2.9% (0.4) $766 $0.79

2015 221 4.6% (0.9) $750 $0.77 3.4% 1.4 $744 $0.77

2014 255 5.6% (0.9) $726 $0.75 2.0% 0.5 $723 $0.75

2013 296 6.5% 0.4 $712 $0.73 1.5% (0.4) $706 $0.73

2012 252 6.1% (0.9) $701 $0.72 1.9% 0.8 $698 $0.72

2011 267 7.0% (0.7) $688 $0.71 1.1% 0.4 $683 $0.70

2010 294 7.8% (0.3) $680 $0.70 0.7% 3.9 $676 $0.70

2009 299 8.0% (0.6) $676 $0.70 -3.2% (1.8) $670 $0.69

2008 321 8.6% 0.7 $$698 $0.72 -1.4% (4.3) $693 $0.71

2007 296 8.0% 1.4 $709 $0.73 2.8% - $703 $0.72

35 4 & 5 star vacancy & rent

Vacancy Market Rent Market Rent Year Ppts Per Per % Ppts Per Per Units Percent Chg Unit SF Growth Chg Unit SF

2023 324 10.0% (0.5) $890 $0.87 0% (0.3) $874 $0.86

2022 311 10.5% (1.2) $890 $0.87 0.3% 0.4 $874 $0.86

2021 316 11.7% 0.9 $887 $0.87 -0.1% (0.5) $871 $0.86

2020 252 10.9% (18.3) $889 $0.87 0.3% (0.4) $872 $0.86

2019 652 29.2% 13.8 $886 $0.87 0.7% (1.3) $870 $0.85

YTD 151 10.7% (4.7) $878 $0.86 -0.2% (2.2) $862 $0.85

2018 218 15.4% 7.7 $879 $0.86 2.0% 1.8 $867 $0.85

2017 90 7.7% 0.5 $862 $0.85 0.3% (1.8) $855 $0.84

2016 78 7.2% 1.2 $859 $0.84 2.1% (0.7) $853 $0.84

2015 65 6.0% (0.9) $842 $0.83 2.8% 0.8 $838 $0.82

2014 61 6.9% (1.8) $819 $0.80 2.0% 0.7 $816 $0.80

2013 77 8.6% (0.1) $803 $0.79 1.3% 0 $791 $0.78

2012 54 8.7% (2.2) $792 $0.78 1.3% 0 $790 $0.78

2011 68 10.9% (0.8) $783 $0.77 1.3% 0.7 $776 $0.76

2010 70 11.7% (1.) $773 $0.76 0.6% 3.2 $766 $0.75

2009 76 12.7% (1.3) $768 $0.76 -2.6% (1.4) $762 $0.75

2008 84 14.0% 0.4 $789 $0.78 -1.1% (3.9) $781 $0.77

2007 81 13.6% 3.4 $798 $0.78 2.7% - $791 $0.78

36 3 star vacancy & rent

Vacancy Market Rent Market Rent Year Ppts Per Per % Ppts Per Per Units Percent Chg Unit SF Growth Chg Unit SF

2023 186 5.8% (0.6) $776 $0.81 0.7% (0.3) $770 $0.81

2022 205 6.4% 0.1 $771 $0.81 0.9% 0.4 $765 $0.80

2021 199 6.3% (0.4) $764 $0.80 0.5% (0.4) $758 $0.79

2020 213 6.7% (0.4) $761 $0.80 0.9% 1.5 $754 $0.79

2019 225 7.1% (0.4) $754 $0.79 -0.6% (2.5) $747 $0.78

YTD 229 7.3% (0.3) $748 $0.78 -1.3% (3.2) $740 $0.77

2018 239 7.6% 0.7 $758 $0.79 1.9% 1.8 $753 $0.79

2017 211 6.8% 0.8 $744 $0.78 0.1% (3.5) $727 #0.76

2016 187 6.0% 1.6 $743 $0.78 3.6% (0.2) $737 $0.77

2015 129 4.4% (0.7) $717 $0.75 3.8% 1.6 $710 $0.74

2014 148 5.1% (0.8) $691 $0.72 2.2% 0.6 $688 $0.72

2013 172 5.9% 0.3 $676 $0.71 1.6% (0.8) $673 $0.70

2012 153 5.6% (0.5) $666 $0.70 2.4% 1.3 $662 $0.79

2011 151 6.0% 0.3 $650 $0.68 1.1% 0.4 $646 $0.68

2010 144 5.8% (1.2) $643 $0.67 0.8% 4.3 $639 $0.67

2009 175 7.0% (0.4) $638 $0.67 -3.6% (2.0) $633 $0.66

2008 185 7.4% 0.6 $661 $0.69 -1.6% (4.4) $656 $0.69

2007 169 6.8% 0.9 $672 $0.70 2.8% - $666 $0.70

37 1 & 2 star vacancy & rent

Vacancy Market Rent Market Rent Year Ppts Per Per % Ppts Per Per Units Percent Chg Unit SF Growth Chg Unit SF

2023 33 4.0% (0.3) $761 $0.82 0.5% (0.3) $755 $0.81

2022 36 4.3% (0.3) $757 $0.81 0.8% 0.4 $752 $0.81

2021 39 4.7% (0.5) $751 $0.81 0.4% (0.6) $746 $0.80

2020 43 5.1% (0.4) $748 $0.80 0.9% (2.0) $743 $0.80

2019 48 5.5% (0.2) $741 $0.80 2.9% 2.5 $736 $0.79

YTD 49 5.7% (0.1) $731 $0.79 1.5% 1.1 $726 $0.78

2018 50 5.8% (1.1) $720 $0.77 0.4% (0.1) $715 $0.77

2017 55 6.9% 3.1 $717 $0.77 0.6% (1.3) $711 $0.76

2016 30 3.8% 0.3 $713 $0.77 1.9% (1.0) $710 $0.76

2015 28 3.6% (2.3) $700 $0.75 2.9% 1.9 $690 $0.74

2014 45 5.9% (0.5) $680 $0.73 1.1% (0.4) $676 $.073

2013 47 6.4% 0.2 $673 $0.72 1.4 0.2 $670 $0.72

2012 45 6.1% (0.8) $663 $0.71 1.3% 0.7 $659 $0.71

2011 48 7.0% (4.6) $655 $0.70 0.6% (0.2) $650 $0.70

2010 79 11.5% 3.7 $651 $0.70 0.8% 4.3 $646 $0.69

2009 48 7.8% (0.6) $546 $0.69 -3.5% (2.0) $641 $0.69

2008 52 8.4% 1.0 $670 $0.72 -1.6% (4.4) $665 $0.71

2007 46 7.4% 1.9 $681 $0.73 2.8% - $675 $0.73

38 Overall sales

Market Pricing Trends Completed Transactions (1) (2) Year Turn- Avg Avg Cap Price/ Price Cap Deals Volume Avg Price over Price/Unit Rate Unit Index Rate

2023 ------$82,307 170 7.8%

2022 ------$82,554 171 7.7%

2021 ------$82,975 172 7.7%

2020 ------$85,208 176 7.4%

2019 ------$87,463 181 7.2%

YTD ------$87,598 181 7.1%

2018 5 $17.2 M 4.5% $3,430,020 $70,000 6.8% $87,532 181 7.0%

2017 2 $4.4 M 1.6% $2,219,000 $54,790 - $83,746 173 7.0%

2016 4 $3.1 M 4.0% $1,570,000 $41,316 8.5% $80,431 166 7.1%

2015 3 $21.7 M 8.6% $10,862,500 $81,063 - $76,741 159 7.2%

2014 1 $7.2 M 2.1% $7,250,000 $75,521 8.5% $72,244 149 7.3%

2013 ------$66,825 138 7.6%

2012 ------$66,383 137 7.5%

2011 ------$63,721 132 7.5%

2010 ------$58,625 121 7.7%

2009 ------$44,539 92 8.6%

2008 1 $0.3 M 0.5% $270,000 $15,000 - $48,327 100 8.4%

(1) Completed transaction data is based on actual arms-length sales transactions and levels are dependent on the mix of what happened to sell in the period. (2) Market price trends data is based on the estimated price movement of all properties in the market, informed by actual transactions that have occurred.

39 4 & 5 star sales

Market Pricing Trends Completed Transactions (1) (2) Year Turn- Avg Avg Cap Price/ Price Cap Deals Volume Avg Price over Price/Unit Rate Unit Index Rate

2023 ------$105,259 171 7.4$

2022 ------$105,776 172 7.4%

2021 ------$106,517 173 7.3%

2020 ------$109,686 178 7.1%

2019 ------$112,908 183 6.8%

YTD ------$113,041 183 6.7%

2018 ------$113,336 184 6.6%

2017 ------$109,113 177 6.6%

2016 1 $0.3 M 6.6% $340,000 $4,722 - $105,125 170 6.6%

2015 1 $0 M 13.2% - - - $101,864 165 6.6%

2014 1 $7.2 M 10.8% $7,250,000 $75,521 8.5% $94,756 154 6.8%

2013 ------$87,198 141 7.1%

2012 ------$86,176 140 7.0%

2011 ------$81,918 133 7.1%

2010 ------$75,728 123 7.3%

2009 ------$57,304 93 8.2%

2008 ------$61,667 100 8.0%

40 3 star sales

Market Pricing Trends Completed Transactions (1) (2) Year Turn- Avg Avg Cap Price/ Price Cap Deals Volume Avg Price over Price/Unit Rate Unit Index Rate

2023 ------$73,248 169 7.9%

2022 ------$73,334 169 7.8%

2021 ------$73,582 170 7.8%

2020 ------$75,393 174 7.6%

2019 ------$77,238 178 7.3%

YTD ------$77,442 179 7.2%

2018 5 $17.2 M 7.8% $3,430,020 $70,000 6.8% $77,134 178 7.1%

2017 2 $4.4 M 2.6% $2,219,000 $54,790 - $73,287 169 7.2%

2016 1 $0 M 3.8% - - - $70,014 162 7.2%

2015 1 $20.6 M 8.2% $20,600,000 $85,833 - $66,207 153 7.3%

2014 ------$62,893 145 7.4%

2013 ------$58,601 135 7.7%

2012 ------$58,530 135 7.6%

2011 ------$56,714 131 7.6%

2010 ------$51,923 120 7.9%

2009 ------39,582 91 8.7%

2008 ------43,301 100 8.5%

41 1 & 2 star sales

Market Pricing Trends Completed Transactions (1) (2) Year Turn- Avg Avg Cap Price/ Price Cap Deals Volume Avg Price over Price/Unit Rate Unit Index Rate

2023 ------$52,468 175 8.5%

2022 ------$52,577 175 8.4%

2021 ------$52,762 176 8.4%

2020 ------%53,986 180 8.1%

2019 ------$55,096 183 7.9%

YTD ------$54,966 183 7.8%

2018 ------$54,818 182 7.7%

2017 ------$52,511 175 7.7%

2016 2 $2.8 M 1.3% $2,800,000 $700,000 8.5% $50,941 169 7.7%

2015 1 $1.1 M 3.6% $1,125,000 $40,179 - $46,494 155 8.0%

2014 ------$44,793 149 8.0%

2013 ------$41,054 137 8.4%

2012 ------$40,815 136 8.3%

2011 ------$39,384 131 8.3%

2010 ------$36,200 120 8.6%

2009 ------$27,629 92 9.5%

2008 1 $0.3 M 2.9% $270,000 $15,000 - $30,056 100 9.3%

42 1 & 2 star vacancy & rent

Under Inventory Deliveries Net Deliveries Construction Year Bldgs Units Vacancy Bldgs Units Bldgs Units Bldgs Units

2023 - 7,258 7.5% - 268 - 257 - -

2022 - 7,001 7.9% - 328 - 317 - -

2021 - 6,684 8.3% - 376 - 366 - -

2020 - 6,318 8.0% - 84 - 73 - -

2019 - 6,245 14.8% - 819 - 814 - -

YTD 83 5,431 7.9% 0 0 0 0 7 1,240

2018 83 5,431 9.3% 5 366 5 366 7 1,240

2017 78 5,065 7.0% 3 126 3 126 7 546

2016 75 4,939 5.9% 1 160 1 160 5 205

2015 74 4,779 4.6% 1 196 1 196 1 160

2014 73 4,583 5.6% 1 30 1 30 1 196

2013 72 4,553 6.5% 4 442 4 442 2 226

2012 68 4,111 6.1% 4 303 4 303 5 472

2011 64 3,808 7.0% 1 20 1 20 4 303

2010 63 3,788 7.8% 1 72 1 72 2 52

2009 62 3,716 8.0% 0 0 0 0 1 72

2008 62 3,716 8.6% 0 0 0 0 0 0

2007 62 3,716 8.0% 4 358 4 358 0 0

* All Information In The Regional Real Estate section received from Costar

43 ADVISOR BIO PAGE

As the President of SVN Asset Advisory Group, Scott Cook brings more than 25 years of commercial and residential real estate experience to the team. In his role, Scott oversees day-to-day operations as well as key orchestration and implementation of people strategies, portfolio management, construction management, brokerage, and business development.

As a licensed California Real Estate Broker, Scott’s expertise is SCOTT COOK at the intersection of academia and business with an up-to-date President understanding of the industry and best practices for execution. He [email protected] obtained his CPM® (Certified Property Manager) credentials through Phone: 619-354-8404 the Institute of Real Estate Management. CalDRE #01203947 SVN Asset Advisory Group serves clients in San Diego, Riverside, Sacramento, and Imperial county, offering services in commercial sales, leasing, property management, maintenance, and construction management. With a true belief that “how you do anything is how you do everything,” Scott balances his professional life by actively seeking roles in countless organizations in the real estate industry and serving in multiple leadership capacities.

As the newly elected President of the San Diego County Apartment Association, Scott continues his commitment to community and profession. He strives to be an informed and educated resource dedicated to improving the local and regional community.

Scott is an Aztec alumnus, graduating from San Diego State University with an emphasis in Pollical Science. In an effort to balance and integrate his industry efforts with practical approaches, he spends time supporting his personal passion for clean water projects globally. A mentor, volunteer, and a coach for little league and AYSO, he has also served in the community through his local PTA.

44 DISCLAIMER

The material contained in this Offering Brochure is furnished solely for the purpose of considering the purchase of the property within and is not to be used for any other purpose. This information should not, under any circumstances, be photocopied or disclosed to any third party without the written consent of the SVN® Advisor or Property Owner, or used for any purpose whatsoever other than to evaluate the possible purchase of the Property.

The only party authorized to represent the Owner in connection with the sale of the Property is the SVN Advisor listed in this proposal, and no other person authorized by the Owner to provide any information or to make any representations other than contained in this Offering Brochure. If the person receiving these materials does not choose to pursue a purchase of the Property, this Offering Brochure must be returned to the SVN Advisor.

Neither the SVN Advisor nor the Owner make any representation or warranty, express or implied, as to the accuracy of the information contained herein, and nothing contained herein is or shall be relied upon as a promise or representation as to the future representation of the Property. This Offering Brochure may include certain statements and estimates with respect to the Property. These Assumptions may or may not be proven to be correct, or warranties, expressed or implied, contained in or omitted from this Offering Brochure, or any other written or oral communication transmitted or made available to the recipient. The recipient shall be entitled to rely solely on those representations and warranties that may be made to it in any final, fully executed and delivered Real Estate Purchase Agreement between it and Owner.

The information contained herein is subject to change without notice and the recipient of these materials shall not look to the Owner or the SVN Advisor nor any of their officers, employees, representatives, independent contractors or affiliates, for the accuracy or completeness thereof. Recipients of this Offering Brochure are advised and encouraged to conduct their own comprehensive review and analysis of the Property.

This Offering Brochure is a solicitation of interest only and is not an offer to sell the Property. The Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest to purchase the Property and expressly reserves the right, at its sole discretion, to terminate negotiations with any entity, for any reason, at any time with or without notice.

45 The Owner shall have no legal commitment or obligation to any entity reviewing the Offering Brochure or making an offer to purchase the Property unless and until the Owner executes and delivers a signed Real Estate Purchase Agreement on terms acceptable to Owner, in Owner’s sole discretion. By submitting an offer, a prospective purchaser will be deemed to have acknowledge the foregoing and agreed to release the Owner and the SVN Advisor from any liability with respect thereto.

To the extend Owner or any agent of Owner corresponds with any prospective purchaser, any prospective purchaser should not rely on any such correspondence or statements as binding Owner. Only a fully executed Real Estate Purchase agreement shall bind the property and each prospective purchaser proceeds at its own risk.

46 2555 SCOTT COOK, CPM®, AMO®, REALTOR® Camino Del Rio South President Suite 201 619-354-8404 San Diego, CA 9210 47 [email protected]