The Maxwell ~ Offering Memorandum 568-576 N

Home , East San Jose, Excite Ballpark, Stevens Stadium

The Maxwell ~ Offering Memorandum 568-576 N. 1st Street 557 N. 2nd Street San Jose, CA 95112 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.

SPECIAL COVID-19 NOTICE

All potential buyers are strongly advised to take advantage of their opportunities and obligations to conduct thorough due diligence and seek expert opinions as they may deem necessary, especially given the unpredictable changes resulting from the continuing COVID-19 pandemic. Marcus & Millichap has not been retained to perform, and cannot conduct, due diligence on behalf of any prospective purchaser. Marcus & Millichap’s principal expertise is in marketing investment properties and acting as intermediaries between buyers and sellers. Marcus & Millichap and its investment professionals cannot and will not act as lawyers, accountants, contractors, or engineers. All potential buyers are admonished and advised to engage other professionals on legal issues, tax, regulatory, financial, and accounting matters, and for questions involving the property’s physical condition or financial outlook. Projections and pro forma financial statements are not guarantees and, given the potential volatility created by COVID-19, all potential buyers should be comfortable with and rely solely on their own projections, analyses, and decision-making.

NON-ENDORSEMENT NOTICE

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THE MAXWELL San Jose, CA ACT ID ZAB0010285

2 INVESTMENT OVERVIEW 01 Executive Summary Offering Summary Maps, Property Photos & Aerial Photos Area Information

FINANCIAL ANALYSIS 02 Rent Roll Summary Rent Roll Detail Operating Statement / Notes Pricing Detail

MARKET COMPARABLES 03 Sales / Rent Comparables

MARKET OVERVIEW 04 Market Analysis Demographic Analysis

This information (and any information transmitted) has been secured from sources we believe to be reliable, but we make no representation or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © Marcus & Millichap INVESTMENT OVERVIEW The Maxwell

OFFERING SUMMARY EXECUTIVE SUMMARY

VITAL DATA Price $7,250,000 CURRENT YEAR 1 Down Payment 40% / $2,900,000 CAP Rate 3.65% 4.41% MAJOR EMPLOYERS Loan Amount $4,350,000 GRM 16.34 14.28 Net Operating Loan Type Proposed New $264,712 $319,955 Income EMPLOYER # OF EMPLOYEES Net Cash Flow Interest Rate / Amortization 3% / 30 Years 1.54% / $44,634 3.44% / $99,878 Lockheed Martin Corporation 5,683 After Debt Service Price/Unit $402,778 Total Return 4.67% / $135,454 6.67% / $193,459 Acer Cloud Technology Inc 5,024 Price/SF $596.71 Crows Auto Sales 3,505 Number of Units 18 Cisco Systems 3,460 Rentable Square Feet 12,150 Agilent Technologies Inc 3,275 Number of Buildings 4 Intel Corporation 3,002 1st Street: 3 / 2nd Number of Stories Street: 2 Rosendin Electric 3,000 Year Built / Renovated 1936 / 2019 Santa Clara Valley Trnsp Auth 2,553 Lot Size 0.63 acre(s) Broadcom 2,413 UNIT MIX City of San Jose 2,327 NUMBER APPROX. UNIT TYPE Sanmina Corporation 2,281 OF UNITS SQUARE FEET Corrections Dept of 2,008 18 One Bedroom 675

DEMOGRAPHICS

18 Total 12,150

1-Miles 3-Miles 5-Miles 2019 Estimate Pop 28,943 237,301 679,737 2010 Census Pop 25,294 213,263 616,925 2019 Estimate HH 11,567 81,436 227,884 2010 Census HH 9,723 71,144 200,772 Median HH Income $84,629 $85,191 $100,174 Per Capita Income $51,767 $44,173 $47,145 Average HH Income $125,912 $126,376 $139,427

#5 The Maxwell

INVESTMENT SUMMARY OFFERING SUMMARY

Located in a highly desirable area of San Jose and in the center of Silicon Valley, The Maxwell consists of 18 one-bedroom units averaging approximately 740 SF, including two penthouse units, each with expansive patios. The property consists of four buildings on a block-wide 27,360 SF lot, spanning between 1st and 2nd Street in North San Jose, and consisting of 3 parcels. Located across the street from Japantown/Ayer light rail station, the residents of The Maxwell enjoy the convenience of transportation to Downtown and North San Jose employers, while living in a predominantly residential neighborhood. The future Google campus will be served by San Diridon Station only 5 Light Rail stations from The Maxwell.

50% of the Maxwell units have been renovated (9 of 18) with new flooring, lighting, interior hardware, fixtures, paint and appliances. Recently completed projects to the community include new mailboxes, exterior paint, new TPO roofs (2017), refurbished hardwood floors in the foyers and stairwells, exterior doors, new exterior fire stairwell, and landscaping. The Maxwell units are individually metered for electricity and gas, with a master water for each building. Residents enjoy assigned and guest parking, stacked in-unit washer/dryers, and ultra-convenient access to shopping, dining and entertainment including San Pedro Square and Coleman Plaza. Additional rental income can be achieved through continuation of unit renovations and installation of air conditioning units.

With its proximity to San Jose International Airport and major Bay Area technology employers, The Maxwell offers the savvy investor the opportunity to diversify sources of revenue with short-term rentals. The corporate housing industry is evolving, with emerging technologies, shifting travel preferences, and changing corporate travel policies. A study shows that 37% of business travelers were looking for increased autonomy (private accommodation) on the trip, according to American Express Global Business Travel. Information is available here → San Jose Municipal Code

Located on a tree-lined residential neighborhood, residents at The Maxwell enjoy easy access to the many amenities provided by the great city of San Jose. The property is a short distance to numerous popular restaurants, shops and entertainment located throughout downtown San Jose. Additionally, the subject property is less than 1.5 miles from nearby shopping that includes Trader Joe’s, Target, Starbuck’s, Chili’s Restaurant, BJ’s Brewery and more.

The Maxwell is surrounded by Major Attractions Including SAP Center, San Jose Museum of Art, San Jose Convention Center, the Children’s Discovery Museum, and the Tech Museum of Innovation, and is just 2 miles from the proposed Google Village site.

INVESTMENT HIGHLIGHTS

▪ Off Street Parking ▪ Within minutes of San Pedro Square, downtown shopping, dining and ▪ Steps from VTA Light Rail entertainment

▪ 100% Rent Collection during Covid-19 ▪ Stackable washer/dryer unit in each ▪ Convenient access to highways 101, 280 apartment home and 85; plus major thoroughfares

6 The Maxwell

OFFERING SUMMARY PROPERTY SUMMARY

THE OFFERING PROPOSED FINANCING Property Maxwell Apartments First Trust Deed Price $7,250,000 Loan Amount $4,350,000 Property Address 568-576 N 1st Street, 557 N 2nd Street, San Jose, CA Loan Type Proposed New Assessors Parcel Number 249-43-048 / 249-43-049 / 249-43-084 Interest Rate 3% SITE DESCRIPTION Amortization 30 Years Number of Units 18 Loan Term 10 Years Number of Buildings 4 Loan to Value 60% Number of Stories 1st Street: 3 / 2nd Street: 2 Debt Coverage Ratio 1.2 Year Built/Renovated 1936 / ongoing Rentable Square Feet 13374 Lot Size .63 Acre Parking (18) assigned (6) unassigned UTILITIES Water Owner pays Electric Tenant pays Gas Tenant pays CONSTRUCTION Foundation Crawl Framing Woof Frame Exterior Stucco Roof TPO Roofing

7 The Maxwell offers the best of both worlds. All the conveniences of living downtown and the peaceful tranquility found in the art-deco architecture, thoughtful design, lush landscape and tree-lined streets. Each unit at The Maxwell is appointed with stackable washer/dryer SAN JOSEDEVELOPMENTS GOOGLE VILLAGE

Google’s downtown San Jose vision: 5,000 homes, 6.5 million square feet of offices, hotel rooms, shops, restaurants, open spaces, job training center

DETAILS 5.5 Million SF Newly ProposedOffice 1 Million SF Office Approved at SJ Water Co.Site 3,000 - 5,000 HousingUnits 500 K SF Retail, Cultural, Arts, Education, Hotel + Other Active Uses 15 Acers Parks + Plaza + Greens Spaces The Maxwell To the North ~ • Easy access to Highways 101, 880, 87, 280 • Minutes from City Government Offices and San Jose International Airport

San Jose International Airport To the South ~ • Minutes from Downtown San Jose • Shopping, Dining and Entertainment • Conveniently located to VTA Light Rail for easy commutes

FINANCIAL ANALYSIS The Maxwell

FINANCIAL ANALYSIS RENT ROLL SUMMARY & DETAIL

18 The Maxwell

FINANCIAL ANALYSIS OPERATING STATEMENT

19 The Maxwell

FINANCIAL ANALYSIS PRICING DETAIL

20 MARKET COMARABLES The Maxwell

SALES COMPARABLES MAP

MAXWELL APARTMENTS (SUBJECT) The Green Villa West 1 Apartments 2 2174 Royal Drive

3 Marymount Place

4 1012 Elm Street

5 2144 Royal Drive

6 DeLaVe Villa Apartments

7 617 S 9th Street

8 2030-2038 Clarmar Way

9 670-686 S 8th Street

SALES COMPARABLES ON MARKET COMPARABLES

22 PROPERTYThe Maxwell NAME

SALES COMPARABLES SALES COMPARABLES SALES COMPS AVG

ON MARKET COMPARABLES ON MARKET COMPS AVG

Average Price Per Square Foot $800.00 Avg. $561.90 Avg. $544.45 $720.00

$640.00

$560.00

$480.00

$400.00

$320.00

$240.00

$160.00

$80.00

$0.00 Maxwell The Green 2174 Royal Marymount 1012 Elm 2144 Royal DeLaVe 617 S 9th 2030-2038 670-686 S Apartments Villa West Drive Place Street Drive Villa Street Clarmar Way 8th Street Apartments Apartments

Average Price Per Unit

$600,000

$540,000 Avg. $320,062 Avg. $434,207

$480,000

$420,000

$360,000

$300,000

$240,000

$180,000

$120,000

$60,000

$0 Maxwell The Green 2174 Royal Marymount 1012 Elm 2144 Royal DeLaVe 617 S 9th 2030-2038 670-686 S Apartments Villa West Drive Place Street Drive Villa Street Clarmar Way 8th Street Apartments Apartments

23 PROPERTYThe Maxwell NAME

SALESMARKETING COMPARABLES TEAM

SALES COMPARABLES ON MARKET COMPARABLES

THE MAXWELL 380 N 26th Street, San Jose, CA, 95116 2174 Royal Drive, Santa Clara, CA, 95050 568-576 N 1st Street, San Jose, CA, 95112 1 2

rentpropertyname1 rentpropertyname1 rentpropertyname1

Units Unit Type Units Unit Type Units Unit Type Offering Price: $7,250,000 18 One Bedroom Close Of Escrow: 10/22/2019 6 1 Bedroom Close Of Escrow: 11/20/2019 12 1 Bedroom Price/Unit: $402,778 Sales Price: $5,890,982 6 2 Bedroom Sales Price: $6,205,000 4 2 Bedroom Price/SF: $596.71 Price/Unit: $490,915 Price/Unit: $517,083 1 3 Bedroom CAP Rate: 3.65% Price/SF: $345.07 Price/SF: $498.47 GRM: 16.34 Total No. of Units: 12 CAP Rate: 4.00% Total No. of Units: 18 Year Built: 1959 Total No. of Units: 12 Year Built: 1936 Year Built: 1958

rentpropertyaddress1 rentpropertyaddress1 rentpropertyaddress1

24 PROPERTYThe Maxwell NAME

SALESMARKETING COMPARABLES TEAM

SALES COMPARABLES ON MARKET COMPARABLES

1978 Bellomy Street, Santa Clara, CA, 95050 1012 Elm Street, San Jose, CA, 95126 2144 Royal Drive, Santa Clara, CA, 95050

3 4 5

rentpropertyname1 rentpropertyname1 rentpropertyname1

Units Unit Type Units Unit Type Units Unit Type Close Of Escrow: 4/27/2020 11 1 Bedroom Close Of Escrow: 9/11/2019 3 Studio Close Of Escrow: 11/20/2019 10 1 Bedroom Sales Price: $6,120,340 2 2 Bedroom Sales Price: $8,300,000 16 1 Bedroom Sales Price: $5,475,000 5 2 Bedroom Price/Unit: $437,167 1 4 Bedroom Price/Unit: $360,870 4 2 Bedroom Price/Unit: $365,000 Price/SF: $593.29 Price/SF: $737.25 Price/SF: $548.16 Total No. of Units: 14 CAP Rate: 5.00% CAP Rate: 4.00% Year Built: 1964 Total No. of Units: 23 Total No. of Units: 15 Year Built: 1960 Year Built: 1959

rentpropertyaddress1 rentpropertyaddress1 rentpropertyaddress1

25 PROPERTYThe Maxwell NAME

SALESMARKETING COMPARABLES TEAM

SALES COMPARABLES ON MARKET COMPARABLES

635 S 11th Street, San Jose, CA, 95112 617 S 9th Street, San Jose, CA, 95112 2030-2038 Clarmar Way, San Jose, CA, 95128

6 7 8

rentpropertyname1 rentpropertyname1 rentpropertyname1

Units Unit Type Units Unit Type Units Unit Type On Market 6 1 Bedroom On Market 14 1 Bedroom On Market 18 1 Bedroom List Price: $6,599,000 14 2 Bedroom List Price: $4,050,000 List Price: $8,150,000 6 2 Bedroom Price/Unit: $329,950 Price/Unit: $289,286 Price/Unit: $339,583 Price/SF: $431.14 Price/SF: $763.86 Price/SF: $579.99 CAP Rate: 4.82% CAP Rate: 5.29% CAP Rate: 4.33% Total No. of Units: 20 Total No. of Units: 14 Total No. of Units: 24 Year Built: 1963 Year Built: 1957 Year Built: 1957

rentpropertyaddress1 rentpropertyaddress1 rentpropertyaddress1

26 PROPERTYThe Maxwell NAME

SALESMARKETING COMPARABLES TEAM

SALES COMPARABLES ON MARKET COMPARABLES

670-686 S 8th Street, San Jose, CA, 95112

rentpropertyname1 rentpropertyname1 rentpropertyname1

Units Unit Type On Market 28 1 Bedroom List Price: $9,000,000 Price/Unit: $321,429 Price/SF: $472.59 Total No. of Units: 28 Year Built: 1959

rentpropertyaddress1 rentpropertyaddress1 rentpropertyaddress1

27 The Maxwell

8 RENT COMPARABLES MAP

MAXWELL APARTMENTS (SUBJECT)

1 427 N 2nd Street

2 1 Julian Street

3 760 N 7th Street

4 101 E San Fernando

28 PROPERTYThe Maxwell NAME

RENT COMPARABLES AVERAGE RENT - MULTIFAMILY

1 Bedroom

$3,000

$2,700

Avg. $2,390 $2,400

$2,100

$1,800

$1,500

$1,200

$900

$600

$300

$0 Maxwell 427 N 2nd 1 Julian 760 N 7th 101 E San Apartments Street Street Street Fernando

29 PROPERTYThe Maxwell NAME

RENTMARKETING COMPARABLES TEAM

MAXWELLrentpropertyname1 APARTMENTS 427 N 2nd Street, San Jose, CA, 95112 1 Julian Street, San Jose, CA, 95112 568-576 N 1st Street, San Jose, CA, 95112 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 One Bedroom 18 675 $2,055 $3.04 1 Bedroom 1 Bath 1 730 $2,500 $3.42 1 Bedroom 1 727 $2,600 $3.58 Total/Avg. 18 675 $2,055 $3.04 Total/Avg. 1 730 $2,500 $3.42 Total/Avg. 1 727 $2,600 $3.58

rentpropertyaddress1 rentpropertyaddress1 rentpropertyaddress1

30 PROPERTYThe Maxwell NAME

RENTMARKETING COMPARABLES TEAM

760 N 7th Street, San Jose, CA, 95112 101 E San Fernando, San Jose, CA, 95112

3 4

rentpropertyname1 rentpropertyname1 rentpropertyname1

Unit Type Units SF Rent Rent/SF Unit Type Units SF Rent Rent/SF 1 Bedroom 1 Bath 1 728 $2,290 $3.15 1 Bedroom 1 Bath 1 769 $2,169 $2.82 Total/Avg. 1 728 $2,290 $3.15 Total/Avg. 1 769 $2,169 $2.82

rentpropertyaddress1 rentpropertyaddress1 rentpropertyaddress1

31 MARKET OVERVIEW The Maxwell

MARKET OVERVIEW SAN JOSE OVERVIEW

Known to the world as Silicon Valley, the San Jose metro is located at the southern end of the San Francisco Bay and encompasses Santa Clara and San Benito counties. A large portion of the area’s 1,315 square miles is unincorporated ranch and farmland.

The metro contains roughly 2 million inhabitants and more than half of the region’s residents reside in the city of San Jose. It is the metro’s largest city with more than 1 million residents, followed by Sunnyvale and Santa Clara. Venture capital funds received in the 1990s helped to turn the area into the world’s most prominent technology hub, a distinction that remains today.

METRO HIGHLIGHTS

PREMIER HIGH-TECH CENTER Silicon Valley’s dense concentration of high-tech jobs is world renowned, attracting a variety of large employers and startups.

HIGH INCOMES Well-paying jobs in the tech sector contribute to a median annual household income level that is almost double the U.S. median.

HIGHLY EDUCATED WORKFORCE Nearly half of all residents age 25 and older have obtained at least a bachelor’s degree, well above the U.S. average.

1 The Maxwell

MARKET OVERVIEW

ECONOMY ▪ The San Jose employment base contains more than 1.1 million workers, ranking the metro as one of the 30 largest job markets in the nation. ▪ There are 18 Fortune 500 companies headquartered in San Jose, including Intel, Cisco Systems, Apple Inc., eBay and Alphabet. ▪ The area’s many institutions of higher learning, including Stanford, San Jose State and Santa Clara University, support these companies by graduating thousands of engineering and computer science students each year.

MAJOR AREA EMPLOYERS

Cisco Systems County of Santa Clara Adobe Systems Inc. Hewlett-Packard Co. City of San Jose Intel Corp. eBay U.S. Veterans Medical Center San Jose State University

Apple * Forecast

SHARE OF 2019 TOTAL EMPLOYMENT

16% 21% 9% 9% 3% MANUFACTURING PROFESSIONAL AND GOVERNMENT LEISURE AND HOSPITALITY FINANCIAL ACTIVITIES BUSINESS SERVICES

12% 4% + 15% 9% 2% TRADE, TRANSPORTATION CONSTRUCTION EDUCATION AND INFORMATION OTHER SERVICES AND UTILITIES HEALTH SERVICES

2 The Maxwell

MARKET OVERVIEW

DEMOGRAPHICS

▪ The metro is expected to add approximately 107,300 people through 2024 and during this time more than 41,000 households will be formed. SPORTS ▪ High home prices contribute to a homeownership rate of 56 percent, which is below the national rate of 57 percent. ▪ Roughly 48 percent of residents age 25 and older hold a bachelor’s degree, including 22 percent who have also obtained a graduate or professional degree.

2019 Population by Age

6% 19% 6% 30% 26% 13% 0-4 YEARS 5-19 YEARS 20-24 YEARS 25-44 YEARS 45-64 YEARS 65+ YEARS EDUCATION

2019 2019 2019 2019 MEDIAN POPULATION: HOUSEHOLDS: MEDIAN AGE: HOUSEHOLD INCOME: 2M 694K 37.1 $121,300 Growth Growth U.S. Median: U.S. Median: 2019-2024*: 2019-2024*: 5.4% 5.9% 38.1 $60,800

QUALITY OF LIFE The San Jose metro has an enviable combination of major universities that produce a highly educated workforce, cutting-edge firms and exceptional affluence. Residents can visit a plethora of museums, including the San Jose Museum of Art and the Tech Museum ARTS & ENTERTAINMENT of Innovation. Santa Clara County is home to performing arts companies and hosts the San Jose Jazz Festival. The San Francisco 49ers play their home games at Levi’s Stadium and the San Jose Sharks hockey team plays at the SAP Center. Other sports venues include Excite Ballpark and Stevens Stadium. The metro is minutes away from San Francisco and some of the world’s finest wine-producing regions, notably the Napa, Sonoma and Alexander valleys.

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

3 The Maxwell

SAN JOSE METRO AREA

Transit Networks Increasingly Key for Development and Investment Strategies

Mountain View captivating builders, driving development to record high. Apartment construction will be abundant this year as 5,500 units are slated for delivery — the highest total this millennium. Northern sections of Sunnyvale will get much-needed supply amid sub-3 percent vacancy, while downtown San Jose will also witness significant development as builders focus on areas that align with public transit routes. Mountain View will post the strongest supply growth, adding more than 1,500 units, as developers seek to keep pace with the steady job creation of nearby tech firms. The influx of supply will outstrip the expected absorption of 4,600 apartments, putting short-term pressure on marketwide vacancy as it’s pushed to the low-4 percent range. Some areas such as East San Jose will retain limited apartment availability, keeping local rent growth among the strongest in the market. Over the past five years, the average effective rent in East San Jose has risen 29 percent, the most of any submarket within the metro.

Favorable yields bringing investors to urban San Jose. Local buyers remain a key component of investment activity as they home in on many of the area’s Class C assets, seeking properties with upside potential. Assets throughout Los Altos and Palo Alto in the five- to 10-unit range will remain highly targeted this year, fueled by the vigorous rental demand from nearby employment hubs, in addition to consistently robust rent growth. Downtown San Jose will also attract these investors as this part of market offers comparatively affordable entry costs and average returns in the mid-4 percent band, up to 50 basis points above the market average. While local interest should remain stable, out-of-state buyers will continue to arrive in San Jose, particularly institutional groups. In recent months, investors from the East Coast directed their focus to the area’s larger Class B complexes along the Caltrain line in southern sections of the market, purchasing units for roughly $420,000 per door.

* Estimate; ** Forecast Sources: Marcus & Millichap Research Services; BLS; CoStar Group, Inc.

36 The Maxwell

SAN JOSE METRO AREA

2020 Market Forecast

Employment Job creation will remain diverse this year, with organizations adding 20,000 up 1.7% new employees.

Construction Development will further accelerate following the completion of 2,700 units 5,500 units last year and 1,400 apartments in 2018.

Vacancy Elevated development will place pressure on market vacancy, driving it up to up 40 bps 4.3 percent. The rate decreased each of the previous three years by a total of 80 basis points.

Rent Coming off a 6.4 percent boost last year, the market’s rent growth will remain up 3.3% stable in 2020 as the average effective rent rises to $3,080 per month.

Investment Smaller Class C assets with value-add potential near major employers will remain sought after by investors, strengthening bidding climates and putting additional pressure on cap rates.

* Estimate; ** Forecast Sources: CoStar Group, Inc.; RealPage, Inc.; Real Capital Analytics

37 PROPERTYThe Maxwell NAME

MARKETINGDEMOGRAPHICS TEAM Created on July 2020

POPULATION 1 Miles 3 Miles 5 Miles HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles ▪ 2024 Projection ▪ 2019 Estimate Total Population 30,721 250,953 717,990 $200,000 or More 14.55% 14.74% 16.92% ▪ 2019 Estimate $150,000 - $199,000 10.86% 11.99% 13.43% Total Population 28,943 237,301 679,737 $100,000 - $149,000 18.57% 17.50% 19.71% ▪ 2010 Census $75,000 - $99,999 10.13% 10.18% 10.37% Total Population 25,294 213,263 616,925 $50,000 - $74,999 12.55% 12.75% 12.16% ▪ 2000 Census $35,000 - $49,999 9.12% 9.20% 8.31% Total Population 23,234 204,989 581,348 $25,000 - $34,999 4.95% 6.43% 5.62% ▪ Daytime Population $15,000 - $24,999 7.82% 7.65% 5.98% 2019 Estimate 80,511 322,694 815,306 Under $15,000 11.45% 9.58% 7.49% HOUSEHOLDS 1 Miles 3 Miles 5 Miles Average Household Income $125,912 $126,376 $139,427 ▪ 2024 Projection Median Household Income $84,629 $85,191 $100,174 Total Households 12,542 87,052 243,373 Per Capita Income $51,767 $44,173 $47,145 ▪ 2019 Estimate POPULATION PROFILE 1 Miles 3 Miles 5 Miles Total Households 11,567 81,436 227,884 ▪ Population By Age Average (Mean) Household Size 2.31 2.76 2.88 2019 Estimate Total Population 28,943 237,301 679,737 ▪ 2010 Census Under 20 16.86% 23.36% 24.18% Total Households 9,723 71,144 200,772 20 to 34 Years 35.33% 30.19% 26.55% ▪ 2000 Census 35 to 39 Years 9.52% 8.17% 8.29% Total Households 7,959 63,660 180,558 40 to 49 Years 14.07% 13.32% 13.69% Growth 2015-2020 8.43% 6.90% 6.80% 50 to 64 Years 14.24% 15.61% 16.38% HOUSING UNITS 1 Miles 3 Miles 5 Miles Age 65+ 9.99% 9.38% 10.92% ▪ Occupied Units Median Age 34.03 33.15 34.61 2024 Projection 12,542 87,052 243,373 ▪ Population 25+ by Education Level 2019 Estimate 12,360 83,229 230,788 2019 Estimate Population Age 25+ 21,569 160,212 466,967 Owner Occupied 3,364 31,740 106,583 Elementary (0-8) 8.49% 9.57% 8.01% Renter Occupied 8,204 49,696 121,301 Some High School (9-11) 8.52% 9.14% 7.96% Vacant 792 1,793 2,903 High School Graduate (12) 19.41% 18.76% 19.01% ▪ Persons In Units Some College (13-15) 16.15% 16.51% 16.67% 2019 Estimate Total Occupied Units 11,567 81,436 227,884 Associate Degree Only 5.66% 6.51% 6.76% 1 Person Units 39.77% 29.07% 25.90% Bachelors Degree Only 23.98% 21.80% 23.17% 2 Person Units 29.72% 27.61% 27.35% Graduate Degree 15.25% 13.86% 15.08% 3 Person Units 12.09% 15.31% 16.19% ▪ Population by Gender 4 Person Units 8.70% 12.47% 13.77% 2019 Estimate Total Population 28,943 237,301 679,737 5 Person Units 3.96% 6.96% 7.41% Male Population 56.84% 52.49% 51.37% 6+ Person Units 5.77% 8.58% 9.38% Female Population 43.16% 47.51% 48.63%

38 PROPERTYThe Maxwell NAME

MARKETINGDEMOGRAPHICS TEAM

Population Race and Ethnicity In 2019, the population in your selected geography is 679,737. The The current year racial makeup of your selected area is as follows: population has changed by 16.92% since 2000. It is estimated that the 37.15% White, 3.12% Black, 0.46% Native American and 36.10% population in your area will be 717,990.00 five years from now, which Asian/Pacific Islander. Compare these to US averages which are: represents a change of 5.63% from the current year. The current 70.07% White, 12.87% Black, 0.19% Native American and 5.66% population is 51.37% male and 48.63% female. The median age of the Asian/Pacific Islander. People of Hispanic origin are counted population in your area is 34.61, compare this to the US average independently of race. which is 38.08. The population density in your area is 8,647.06 people per square mile. People of Hispanic origin make up 35.65% of the current year population in your selected area. Compare this to the US average of 18.17%.

Households Housing There are currently 227,884 households in your selected geography. The median housing value in your area was $692,731 in 2019, The number of households has changed by 26.21% since 2000. It is compare this to the US average of $212,058. In 2000, there were estimated that the number of households in your area will be 243,373 92,371 owner occupied housing units in your area and there were five years from now, which represents a change of 6.80% from the 88,187 renter occupied housing units in your area. The median rent at current year. The average household size in your area is 2.88 the time was $999. persons.

Income Employment In 2019, the median household income for your selected geography is In 2019, there are 395,163 employees in your selected area, this is $100,174, compare this to the US average which is currently $60,811. also known as the daytime population. The 2000 Census revealed that The median household income for your area has changed by 63.23% 60.44% of employees are employed in white-collar occupations in this since 2000. It is estimated that the median household income in your geography, and 39.46% are employed in blue-collar occupations. In area will be $121,971 five years from now, which represents a change 2019, unemployment in this area is 3.25%. In 2000, the average time of 21.76% from the current year. traveled to work was 28.00 minutes.

The current year per capita income in your area is $47,145, compare this to the US average, which is $33,623. The current year average household income in your area is $139,427, compare this to the US average which is $87,636.

39 The Maxwell

8 DEMOGRAPHICS

40 568-576 N. 1st Street 557 N. 2nd Street The Maxwell San Jose, CA 95112

Exclusively listed by: Eduardo Cerna Senior Managing Director InvestmentsSenior Director, national Multi Housing Group [email protected] P: 408-627-0771 BRE: 00947748