RIVER’S SIDE AT WASHINGTON SQUARE 3RD STREET 289 West Sacramento, CA EXCLUSIVE LISTING

Prepared by: Aaron Frederick David Herrera Colliers International Senior Vice President Senior Vice President 301 University Avenue, Suite 100 916 830 2584 916 563 3032 Sacramento, CA 95825 [email protected] [email protected] 916 929 5999 Lic. 1298833 Lic. 01484908 www.colliers.com/sacramento CONTENTS

PROPERTY OVERVIEW...... 3

PROPERTY LOCATION ...... 4

PRICING SUMMARY...... 5

2017 RENT CALCULATIONS...... 7

RIVER’S SIDE AT WASHINGTON SQUARE...... 9

BUILDING PARKING LOT PLAN...... 10

FLOOR PLANS...... 11

FUN FACTS...... 15

REGIONAL OVERVIEW ...... 17

DEMOGRAPHICS...... 20

THIS IS NOT AN APPRAISAL: This Real Estate Broker’s Opinion of Value is intended for the sole and exclusive use of David Townsend (“the Client”) and may not be relied upon any person or entity other than the Client for any purpose whatsoever. This Real Estate Broker’s Opinion of Value represents only the opin- ion of Colliers International as to the value of the Subject Property, subject to the assumptions and qualifications set forth herein. Colliers International is not licensed to perform real property appraisals. Accordingly, this Real Estate Broker’s Opinion of Value does not constitute an appraisal of the Subject Property and has not been prepared in accordance with the Uniform Standards of Professional Appraisal Practice. The Real Estate Broker’s Opinion of Value set forth herein is specifically qualified by, and based solely upon, the relevant facts, circumstances, and market conditions that exist as of the date of this Broker’s Opinion of Value.

2 COLLIERS INTERNATIONAL 2 property OVERVIEW

This is a rare opportunity to purchase the only mixed-use property in the River’s Side at Washington Square in West Sacramento. Built in 2007, the property anchors 25 detached, zero-lot-line, single-family homes in an emerging neighborhood. Bean & Barrel, a locally grown, owned and operated eatery with a contemporary coffee shop and wine bar, occupies the ground floor. Directly above the restaurant are four remodeled apartments which are categorized for affordable housing with an income restriction. There are two studios and two two-bedroom, one-bath units which are allotted one reserved off-street parking space per resident. All four units have been remodeled with new cabinets, granite counter tops, wood laminate floors and/or stained concrete. Each unit features central heat & air and an individual water heater. The modern kitchens are fitted with a gas stove, microwave, dishwasher and refrigerator. Elevator access is available to the residents. In addition, a common area washer and dryer is available to the tenants at no cost to them.

The property includes a ground lease with the City of West Sacramento for a 17-stall parking lot used by the Bean & Barrel. The retail tenant pays $4,500 per year for use of these parking spaces.

West Sacramento is separated from the City of Sacramento by the Sacramento River. The I Street Bridge immediately connects the River’s Side at Washington Square to Old Sacramento and J Street - the gateway to the heart of Downtown Sacramento. Less than one mile from the subject property is the Golden 1 Center, an indoor arena used by the Sacramento Kings basketball team and Raley Field, which is home to the Sacramento River Cats. Residents have access to The River Walk Park, a paved trail on the west bank of the Sacramento River. The Park offers picnic areas, informational signs about the settlement of Sacramento, a grand staircase for special events & concerts, fishing, boat access, and a recreational park. The proximity to amenities, urban lifestyle and affordability make West Sacramento a growing community.

investment HIGHLIGHTS

> Mixed-use property > Built in 2007 > Central heat & air > Four apartments and one retail > Individual water heaters > Apartments are income restricted > Shared washer/dryer > All four units remodeled > Elevator > Less than one mile to Golden 1 Center > Reserved off-street parking > Proximity to Raley Field > Ground lease - 17 parking spaces > Access to The River Walk Park

3 COLLIERS INTERNATIONAL property LOCATION

DOWNTOWN ±55 ±140 400 DOWNTOWN RESTAURANTS RETAIL BARS BUSINESSES

THE BRIDGE DISTRICT

THE RAILYARDS FUTURE DEVELOPEMENT I ST BRIDGE

RAILYARDS BLVD

PROPOSED BRIDGE

3RD ST

C ST 4TH ST

5TH ST >

4 COLLIERS INTERNATIONAL pricing SUMMARY

PRICING SUMMARY Address 289 3rd Street City, ST, Zip West Sacramento, CA 95605 Year Built 2007 Rentable Sq.Ft. 5,095 Approx. Lot Size (Acres) 0.09 APN 010-580-018

PRICE $2,000,000 Price per Sq.Ft. $392.54 Current CAP Rate 4.56% Current GRM 14.56

5 COLLIERS INTERNATIONAL BREAKDOWN SUnitCHED MixULED Income INCOME Current Proforma Monthly Monthly Monthly Monthly # of Units Unit Type Sq.Ft. Rent/Unit Income Rent/Unit Income 2 studio 579 $623 $1,246 $623 $1,246 2 2bed/1bath 984 $1,850 $3,700 $1,900 $3,800 1 Commerical 1,969 $6,500 $6,500 $6,500 $6,500 Total Monthly Income $11,446 $11,546

AnnualizedANNUALIZED Operating OPERATING Income INCOME Current ProForma Scheduled Rental Income $137,352 $138,552 Less Vacancy Rate 3% -$1,260 -$1,368 Gross Operating Income $136,092 $137,184 Less Expenses -$44,945 -$45,010 Net Operating Income $91,147 $92,174

AnnualizedAnnualized ExpExpensesenses Expenses % of GOI Current ProForma New Taxes* 1.15% $23,000 $23,000 Insurance $2,059 $2,059 Utilities $8,000 $8,000 Management 6.0% $8,166 $8,231 Repair & Maintenance 2.2% $3,000 $3,000 HOA $720 $720 Parking $0 $0 Total Expenses $44,945 $45,010 % of Gross Operating Income 33.03% 32.81% Expense per Unit $8,989 $9,002

*New Taxes based on proposed purchase price not % of GOI

NOTES: Vacancy is only based on the apartment units. R&M estimated. Annual parking fee is paid by Bean & Barrel - rate is $4,500 a year.

6 COLLIERS INTERNATIONAL 2017 RENT CALCULATIONS River’s Side at Washington Square

2017 HCD Income Limits Yolo County

HOUSEHOLD SIZE INCOME 1 Person 2 Person 3 Person 4 Person 5 Person 6 Person 7 Person 8 Person

Very Low $26,950 $30,800 $34,650 $38,450 $41,550 $44,650 $47,700 $50,800 (50%)

Moderate $64,600 $73,850 $83,050 $92,300 $99,700 $107,050 $114,450 $121,850 (120%)

2017 Median Household Income: $76,900 Source: 2017 HCD Income Limits (Effective 6/9/2017)

Rent Calculations Very-Low Income Units (0 BR)

One-Person Income (50% of AMI)* $26,950

Max Gross Rent (30% of 50%) $673 Utility Allowance** $50

Max Contract Rent $623

* Based on HCD 2017 Income Limits for Yolo County ** Based on 07/17 Yolo County Housing Authority Utility Allowances (EEG)

Moderate Income Units (2 BR)

Three-Person Income (120% of AMI)* $83,050

Max Gross Rent (30% of 120%) $2,076 Utility Allowance** $72

Max Contract Rent $2,004

* Based on HCD 2017 Income Limits for Yolo County ** Based on 07/17 Yolo County Housing Authority Utility Allowances (EEG)

7 COLLIERS INTERNATIONAL river’s SIDE AT WASHINGTON SQUARE

Subject Property

9 COLLIERS INTERNATIONAL building PARKING LOT PLAN

- RIVER’S SIDE PARKING

Burger & Brew Subject Parking

10 COLLIERS INTERNATIONAL floorPLANS

Ground Floor - Retail Space

Second Floor - Apartment Units 12 COLLIERS INTERNATIONAL 13 COLLIERS INTERNATIONAL 14 COLLIERS INTERNATIONAL CITY RANKINGS #1 Rental growth nationally over the past 12 months #1 Happiest workers in mid-sized cities #1 Most valuable minor league baseball team 104,841 17,737 #2 Top 10 Most fun, affordable US cities DAYTIME EMPLOYEES HOUSING UNITS #4 U.S. Metro clean tech index #4 Best cities for nerds #10 Best cities for women in the workforce #10 Least stressed-out cities #10 The 10 best cities for coffee enthusiasts #14 America’s coolest cities in 2014 MILES OF BIKE32+ PATHS (SAC REGION)

THE KAY 50+ SLEEK MODERN RESTAURANTS WITHIN WALKING DISTANCE fun FACTS

ENTERTAINMENT DISTRICT NEW PROFESSIONAL SPORTS AND ENTERTAINMENT CENTER WITH DEVELOPMENT OF 350,000 SF RETAIL, 250-ROOM HOTEL AND UP TO 500,000 SF RESIDENTIAL UNITS THE RAILYARDS THE RAILYARDS WILL BE A MIXED-USE HUB FOR ENTERTAINMENT, RETAIL, HOUSING, OFFICE, THEATERS, PARKS, HOTELS, AND MUSEUMS

15PHOTOCOLLIERS CREDIT: INTERNATIONAL CHRIS YUEN, COLLIERS INTERNATIONAL 1410 G STREET 15 DOWNTOWN19,650 RESIDENTS RESTAURANTS140 DOWNTOWN55 BARS RETAIL400 BUSINESSES

ONE OF THEGOLDEN MOST TECHNOLOGICALLY 1 ADVANCEDCENTER ARENAS IN THE WORLD 15.3REGIONAL ANNUALMILLION VISITORS

OLD SACRAMENTO THE BRIDGE DISTRICT 3.3 MILLION VISITORS ANNUALLY PROPOSED 4,000 RESIDENTIAL UNITS, 5 MILLION SF OF COMMERCIAL SPACE AND 500,000 SF OF RETAIL SPACE.

16 COLLIERS INTERNATIONAL 16 COLLIERS INTERNATIONAL regional OVERVIEW

The Sacramento Region is a place where exciting opportunities are being created for its 2.3 million residents and growing Sacramento businesses, including the region’s rapid emergence as a national leader in several high growth technology fields. The Sacramento Region offers a welcoming business climate, an abundant and educated workforce from its world-class research and educational institutions, and low costs of living and doing business; the perfect incubator for business development.

Home to the California State Capital, the Sacramento Region is centrally located 75 miles northeast of San Francisco at the confluence of the American and Sacramento Rivers. This geographic location provides convenient market access through several major highways and freeways, the largest rail hub west of the Mississippi, a deep- water shipping channel, and an easily accessible international airport. Several major cities on the West Coast are within the range of a day trip, and destinations across the globe can be reached through the state-of-the-art Sacramento International Airport. Other reasons that Business continue to choose the region include:

CALIFORNIA’S MARKETPLACE POWER: Californians are the largest consumer of new technologies in the U.S.

CALIFORNIA’S POLICY HQ: Homebase for federal and state agencies and departments, as well as executive and legislative arms of state government.

AFFORDABILITY: Most cost effective of California’s major metro areas, from business costs to the costs of living.

TALENTED WORKFORCE: For ALL occupations, from advanced research to major distribution.

PROGRESSIVE UTILITIES: Two major utilities (PG&E and SMUD) ranked in the top 5 in the U.S. with a strong transportation system: air, roadway, rail, and waterway.

MOMENTUM OF OTHER COMPANIES: The Sacramento Region continues to be a popular destination for high technology, advanced manufacturing, biotechnology, and food sciences, production, and distribution companies.

17 COLLIERS INTERNATIONAL 1410 G 1410STREET G STREET17 regional OVERVIEW

SACRAMENTO REGION – MAJOR PRIVATE SECTOR EMPLOYERS Sutter Health - Kaiser Permanente - Dignity Health - Raley Inc. - Intel Corp. - Wells Fargo & Co. - Hewlett-Packard Co. - Cache Creek Casino Resort Casino Resort - Health Net of California, Health Net Federal Services - VSP Global - Union Pacific Railroad Co. Inc. - Thunder Valley Casino Resort - Northstar California - PRIDE Industries - Blue Shield of California - Aerojet Rocketdyne - Marshall Medical Center - Delta Dental.

SACRAMENTO REGION MAJOR TECHNOLOGY COMPANIES: Intel Corp - Hewlett-Packard Co. - Apple Inc. - Aerojet Rocketdyne - Oracle Corp. - TSI Semiconductors Corporation - Teledyne Technologies - Agilent Technologies Inc. - Siemens Healthcare Diagnostics - Volcano Corp. - Monsanto Co. Vegetable Seeds Division - The Jackson Laboratory West - PASCO Scientific - Marrone Bio Innovations Inc - ConQuip Inc - Bentec Medical Inc.

POPULATION GROWTH The Sacramento Region is one of the fastest-growing metropolitan areas in California with population growth largely attributed to the migration of residents from other California and U.S. urban areas. The consistent growth of the Sacramento Region is attributed to its desirability as a great place to live and work, while offering a much lower cost of living than the San Francisco Bay Area, Los Angeles, and San Diego metropolitan areas. The Sacramento Region includes the 26th largest metropolitan statistical area in the United States, roughly similar to the Cincinnati, Cleveland, San Antonio, and Orlando metropolitan areas.

The Sacramento Region’s population was nearly 2.4 million people in 2015. The region has seen impressive growth over the past five years relative to the state and the nation. From 2010 to 2015, the region grew around 6 percent compared to California’s and the United States’ respective growth rates of about 5 percent and 4 percent.

SACRAMENTO REGION ECONOMY With a unique and increasingly healthy mix of economic opportunities for companies and job seekers alike, the Sacramento Region has experienced strong population and steady job growth over the last few decades and is expected to out-pace the national average by more than double over the next ten years. This growth is credit to the diversification and strength of the region’s economic base—with a shift from primarily government employment to private sector employment that now represents dynamic and expanding industries including high technology, life sciences, healthcare, food/agriculture technologies, and clean energy technology. In fact, the renewable energy and clean energy technology industries have been investing in the Sacramento Region at levels never seen before, and an increasing number of

1818 COLLIERS INTERNATIONAL regional OVERVIEW

national and international firms are choosing the Sacramento Region as their base of operations for the U.S. In addition to the Sacramento Region’s strengths for traditional businesses, including lower costs, a positive business climate, and high quality of life, the region is seeing a wave of technology companies moving to the area to take advantage of an entirely new set of competitive advantages. These advantages include strong educational and research institutions, location of the state capital, proximity to the San Francisco Bay Area, an emerging venture capital network, premier sites and facilities, and a qualified technical workforce.

TRANSPORTATION: The intersection of several major highways provides the Sacramento Region with easy access to many destinations. Interstate 5 provides a direct route to Seattle, Portland, and Los Angeles. Interstate 80 permits one-day travel to Salt Lake City, and the San Francisco Bay Area and Reno are between 1.5 to 2 hours away. Lake Tahoe and Nevada are reachable within two hours on both Interstate 80 and Highway 50, and Highway 99 provides quick access to the San Joaquin and upper Sacramento Valleys.

THE CAPITOL CORRIDOR: The Capitol Corridor is a 170-mile railroad network that provides residents with another intercity travel option for travel within eight Northern California Counties: Placer, Sacramento, and Yolo Counties (within the Sacramento Region), in addition to Solano, Contra Costa, Alameda, San Francisco, and Santa Clara Counties. This network, which also includes motor coach bus connections, is the second-largest urban service area in the Western United States. Many commuters between the Sacramento area and the San Francisco Bay Area choose this mode of transportation to avoid traffic congestion along the I-80, I-680, and I-880 freeways that link the two areas.

THE SACRAMENTO INTERNATIONAL AIRPORT: Over the past five years, the airport provided services to an average of around ten million passengers yearly from its 11 major carriers. The airport offers over 150 flights daily with frequent non-stops to major cities across the U.S. such as New York City, Washington D.C., Atlanta, Chicago, Dallas, Denver, Honolulu, Las Vegas, Minneapolis, Salt Lake City, and Seattle.

COLLEGES AND UNIVERSITIES: UNIVERSITY OF CALIFORNIA DAVIS is one of the nation’s top public research universities, with more than a century of service to the region, the nation and the world. Its four colleges, six professional schools, more than 100 academic majors. The 32,000-student, 5,300-acre University has its main campus in the Sacramento Valley, and its Sacramento campus right in the capital city.

CALIFORNIA STATE UNIVERSITY, SACRAMENTO offers life-changing opportunities for students, preparing them to be leaders in their professions and communities. As a vibrant, metropolitan university, Sacramento State enrolls a multicultural student body of 28,000 and graduates about 6,000 students each year. The university has an annual economic impact on the region of nearly $930 million and 16,000 jobs, and 1 in 24 people in the region is a Sacramento State alumnus. Preparing the region’s future leaders is a vital part of a Sacramento State education. The university has one of the largest cooperative education programs in California, placing students in paid positions where they receive academic credit. Hundreds of other students serve internships in business and government.

19 COLLIERS INTERNATIONAL DEMOGRAPHICS

POPULATIONS 1 Mile Ring 3 Mile Ring 5 Mile Ring 2000 Total Population 11,419 107,788 234,891 2010 Total Population 12,543 119,108 268,476 2017 Total Population 13,872 128,112 287,806 2022 Total Population 14,640 134,550 302,464 2017-2022 Annual Rate 1.08% 0.99% 1.00%

HOUSEHOLDS 2000 Total Households 4,040 47,565 95,465 2010 Total Households 4,695 51,895 107,551 2017 Total Households 5,326 55,294 113,865 2022 Total Households 5,668 57,913 119,098 2017-2022 Annual Rate 1.25% 0.93% 0.90%

2017 RACE White Alone 53.9% 54.6% 51.6% Black or African American Alone 11.1% 10.2% 11.2% Asian Alone 10.0% 10.7% 13.2% Other Race 15.1% 14.0% 13.6% Hispanic 34.2% 31.6% 30.5%

2017 INCOME Per Capita Income $23,085 $30,011 $29,061 Household Income: Median $35,883 $49,111 $51,174 Household Income: Average $53,535 $68,498 $72,236

2017 MISC 2017 Avg. Household Size 2.16 2.24 2.47 Occupied Housing Units 6,036 59,852 123,378 Owner Occupied 24.0% 31.8% 39.3% Renter Occupied 64.2% 60.6% 53.0%

20 COLLIERS INTERNATIONAL CONTACTS: AARON FREDERICK offices in Senior Vice President 554 +1 916 830 2584 66 countries on [email protected] DAVID HERRERA Senior Vice President 6 continents +1 916 563 3032 [email protected]

ANZ: 192 Colliers International | Sacramento 301 University Avenue, Suite 100 United States: 153 Sacramento, CA | Unites States Canada: 34 +1 916 929 5999 Latin America: 24 Asia Pacific:39 EMEA: 112

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