Sand Canyon Plaza

SAND CANYON PLAZA

EXCLUSIVE OFFERING MEMORANDUM

A MIXED USE MASTER PLANNED COMMUNITY | SANTA CLARITA, CA SAND CANYON PLAZA

CANYON COUNTRY

EXECUTIVE SUMMARY AREA INFORMATION Sand Canyon Plaza ...... 4 City Demographics...... 22 Location Maps...... 5 Schools...... 23 TABLE OF CONTENTS Amenities...... 24 DEVELOPMENT OVERVIEW Transit Map...... 25 The Master Plan...... 8 Site Development Plan...... 9 MARKET Development Highlights...... 10 Market Overview...... 27 Rendering...... 11 Actively Selling Communities Map...... 29 Single Family Detached Lots...... 13 Pricing Graph...... 30 Townhomes...... 15 Actively Selling Communities Details.... 31

OFFERING GUIDELINES Offering Guidelines...... 35 Disclosures...... 36 EXECUTIVE SUMMARY EXECUTIVE SUMMARY THE OPPORTUNITY

Sand Canyon Plaza is a fully-approved master planned community located in the affluent Los Angeles submarket of Santa Clarita with a complementary mix of uses including garden apartments, townhomes, single family detached homes, assisted living and a grocery-anchored neighborhood retail center. With a grading permit ready to be pulled, the owner is offering the entire master plan for sale. This is an ideal opportunity for a land developer to act as a master developer and deliver planning areas to merchant builders, a larger homebuilder with in-house land development capabilities or a well-capitalized apartment developer who will develop the whole site and build an institutional-quality apartment community. The entitlements in place allow for some modifications. For example, the apartment planning area could be built as for-sale residential. Building townhomes at 20 DU/acre on 9.7 net acres, would increase the total for-sale unit count to approximately 463 homes. The single family detached planning area could also be segmented into two 50+ subdivisions to increase the sales rate.

HIGHLIGHTS

Sand Canyon Plaza offers a compelling development opportunity due to:

• Fully entitled master planned community

• Grading permit ready to be pulled and almost all of the Final Engineering is • Strong demand from high-quality buyers who want to buy individual planning complete areas

• Property is being sold in bulk as-is • Minimal new and resale competition

• Highly desirable area in suburban Los Angeles • Mix of complementary uses enhances resident lifestyle • Conveniently located to shopping, employment and other regional amenities Due diligence information is available to a buyer by clicking the following link: Sand Canyon Due Diligence

SAND CANYON PLAZA // Master Planned Community // Santa Clarita, California 4 EXECUTIVE SUMMARY REGIONAL MAP

SAND CANYON PLAZA

SAND CANYON PLAZA // Master Planned Community // Santa Clarita, California 5 EXECUTIVE SUMMARY LOCAL MAP

SAND CANYON PLAZA

SAND CANYON PLAZA // Master Planned Community // Santa Clarita, California 6 DEVELOPMENT OVERVIEW DEVELOPMENT OVERVIEW THE MASTER PLAN

18 THE EXECUTIVE COLLECTION AT SAND CANYON PLAZA 150 TOWNHOMES

119 SINGLE FAMILY DETACHED LOTS

311 GARDEN-STYLE APARTMENTS

Concept Illustration Bill Tosetti 60,000 SF GROCERY ANCHORED RETAIL CENTER UP TO 140-BED ASSISTED LIVING SITE

SAND CANYON PLAZA // Master Planned Community // Santa Clarita, California 8 DEVELOPMENT OVERVIEW SITE DEVELOPMENT PLAN

SAND CANYON PLAZA // Master Planned Community // Santa Clarita, California 9 DEVELOPMENT OVERVIEW DEVELOPMENT HIGHLIGHTS - THE MASTER PLAN

LOCATION/ACCESS PROPERTY CONDITION Northeast corner of Sand Canyon Road and Soledad Canyon Road Unimproved and being sold in bulk as-is. Santa Clarita, Los Angeles, CA UTILITIES Easily accessed off the Sand Canyon exit from the 14 Freeway. Water: Santa Clarita Water District NET ACREAGE Electric: So Cal Edison ±37.8 Gas: So Cal Gas Company Sewer: Los Angeles County Sewer Maintenance Department APN Cable: Time Warner 2839-006-052; -058; -059; -060; -063; -064; -065; 2839-005-035 Telephone: AT&T

ZONING TAX RATE MX-N (Mixed Use - Neighborhood) Tax rate is estimated to be 1.18862% plus $735/year for townhomes and $877/year for ENTITLEMENT SUMMARY the single family. Fully approved master planned community with certified EIR and TTM #053074 HOA Sand Canyon Land Use Summary To be formed by buyer. Planning Project Commercial Residential Acreage Area No. Use SQFT DU's SCHOOL DISTRICT 60,000-SF Sulphur Springs School District, William Hart Union High School District Commercial/ 85,000- SF of PA-1 Retail/Restaurant/ Assisted N/A 9.6 Mitchell Community Elementary School - GS: 6/10 Assisted Living Living (180 Beds) Sierra Vista Junior High School - GS: 7/10 PA-2 Multi-Family Attached N/A 312 12.2 Canyon High School - GS: 8/10 PA-3 Multi-Family Attached N/A 149 10.3 PA-4 Single Family Det Condos N/A 71 7.3 DUE DILIGENCE PA-5 Single Family Det Condos N/A 48 6.3 Due diligence information is available to a buyer by clicking the following link: Streets N/A N/A 6.3 Private Park/ Rec Center N/A N/A 2 Sand Canyon Due Diligence Drainage Basin N/A N/A 1 Open Space/ Landscape Areas N/A N/A 31.4 FEE CREDIT Right of Way Dedication N/A N/A 1.1 Total fee credit is roughly $10,900,000 including credits for Quimby Fees (applied to entire Total 145,000 SF 580 87.5 project), Impact Fees (applied to apartment site only) and Bridge & Thoroughfare Fees (applied to entire project).

IMPROVEMENT COSTS Seller's estimate of hard costs is $28,398,048 including $2,000,000 for the project's contribution to SCVWD improvements but excluding contingency per bids provided by Rasmussen and Cobalt. Completion of the work gets the project to a superpad condition. SAND CANYON PLAZA // Master Planned Community // Santa Clarita, California 10 DEVELOPMENT OVERVIEW RENDERING

SAND CANYON PLAZA // Master Planned Community // Santa Clarita, California 11 DEVELOPMENT OVERVIEW DEVELOPMENT HIGHLIGHTS - SINGLE FAMILY DETACHED LOTS

SAND CANYON PLAZA // Master Planned Community // Santa Clarita, California 12 DEVELOPMENT OVERVIEW DEVELOPMENT HIGHLIGHTS - SINGLE FAMILY DETACHED LOTS

LOCATION/ACCESS Santa Clarita, Los Angeles, CA Easily accessed off the Sand Canyon exit from the 14 Freeway.

NET ACREAGE ±13.3

PRODUCT TYPE Single Family Detached

Single Family‐ Mix Plan SQ Footage Total P1 1,900 22 P2 2,200 24 P3 2,500 25 P4 2,600 16 P5 2,750 16 P6 2,900 16 Total 119

ZONING MX-N (Mixed Use - Neighborhood)

ENTITLEMENT SUMMARY Master planned community with master tentative tract map. Buyer has ability to use conceptual lot layout or customize as desired.

PA 4 AVG LOT SIZE ±3,000 sf

PA 5 AVG LOT SIZE ±3,500 sf

DUE DILIGENCE Due diligence information is available to a buyer by clicking the following link: Sand Canyon Due Diligence

SAND CANYON PLAZA // Master Planned Community // Santa Clarita, California 13 DEVELOPMENT OVERVIEW DEVELOPMENT HIGHLIGHTS - TOWNHOMES

SAND CANYON PLAZA // Master Planned Community // Santa Clarita, California 14 DEVELOPMENT OVERVIEW DEVELOPMENT HIGHLIGHTS - TOWNHOMES

LOCATION/ACCESS Santa Clarita, Los Angeles, CA Easily accessed off the Sand Canyon exit from the 14 freeway.

NET ACREAGE ±7.6

PLANNING AREA 3A (CONDOS) 8 Building @ 15 units/bldg: 120 units

PLANNING AREA 3B (CONDOS) 2 Building @ 15 units/bldg: 30 units

Townhomes- Mix Plan SQ Footage BD/BA Each Mix Total P1 1,489 3/3 3 30 P2 1,694 3/2.5/Den 2 20 P3 1,696 3/2.5/Den 4 40 3/3.5/Optional P4 1,800 4 40 Den P5 2,080 4/3.5/Loft 2 20 Total 150

ZONING MX-N (Mixed Use - Neighborhood)

18 ENTITLEMENT SUMMARY THE EXECUTIVE COLLECTION AT SAND CANYON PLAZA Master planned community with master tentative tract map. Buyer has ability to use conceptual lot layout or customize as desired.

DUE DILIGENCE Due diligence information is available to a buyer by clicking the following link: Sand Canyon Due Diligence

SAND CANYON PLAZA // Master Planned Community // Santa Clarita, California 15 DEVELOPMENT OVERVIEW TOWNHOMES

SAND CANYON PLAZA // Master Planned Community // Santa Clarita, California 16 DEVELOPMENT OVERVIEW TOWNHOMES

SAND CANYON PLAZA // Master Planned Community // Santa Clarita, California 17 DEVELOPMENT OVERVIEW TOWNHOMES

SAND CANYON PLAZA // Master Planned Community // Santa Clarita, California 18 DEVELOPMENT OVERVIEW TOWNHOMES

SAND CANYON PLAZA // Master Planned Community // Santa Clarita, California 19 DEVELOPMENT OVERVIEW TOWNHOMES

SAND CANYON PLAZA // Master Planned Community // Santa Clarita, California 20 AREA INFORMATION AREA INFORMATION CITY DEMOGRAPHICS

POPULATION PARKS 213,231 34 RECREATION MEDIAN AGE 36.9 CENTERS 5

HOUSEHOLD INCOME SANTA SUSANA $90,544 MOUNTAIN RANGES

PERSONS/HOME 80 MILES 3.06 OF BIKING TRAILS

# OF HOUSEHOLDS 25 67,900 HIKING TRAILS

# OF EMPLOYEES BURBANK 103,529 AIRPORT

SAND CANYON PLAZA // Master Planned Community // Santa Clarita, California 22 AREA INFORMATION SCHOOLS

• Mitchell Community Elementary | K-6 Great Schools: 7 16821 West Goodvale Street Canyon Country, CA 91387 • Sierra Vista Junior High | 7-8 Great Schools: 8 19425 West Stillmore Street Canyon Country, CA 91351 SAND CANYON PLAZA • Canyon • • High | 9-12 Great Schools: 9 19300 West Nadal Street Canyon Country, CA 91351

•

Sulphur Springs School District, William Hart Union High School District

SAND CANYON PLAZA // Master Planned Community // Santa Clarita, California 23 AREA INFORMATION LOCAL AMENITIES

SHOP

1. Vons 2. Rite Aid 3. Leaf International 4. Ralphs 5. Food 4 Less 6. Vallarta Supermarkets 7. TJMaxx 8. Ross Dress for Less 9. Costco 10. The Plaza at Golden Valley SAND CANYON PLAZA EAT 1. Coco's 3. 3. 1. 2. In-N-Out 3. 2. 3. Starbucks 1. 4. 1. 1. 4. Piccola Trattoria 4. 8. 2. 6. 5. Ay Carama 8. 2. 2. 5. 7. 5. 6. Sushi 661 7. The Habit Burger Grill 3. 9. 8. Rattler's Bar B Que 7. 6. 2. 5. 4. FUEL 1. Mobil 10. 2. Costco Gas 3. Shell 4. Arco 5. Sam's Club

TRANSPORTATION

1. Vista Canyon Train Station

RECREATION

1. Edwards Canyon Country 10 2. Mountasia Family Fun Center 3. Six Flags Magic Mountain SAND CANYON PLAZA // Master Planned Community // Santa Clarita, California 24 AREA INFORMATION TRANSIT MAP

Since 1992, Metrolink has provided Southern California a safe, convenient alternative to driving. As drivers choose Metrolink, traffic is relieved and air quality is improved. Metrolink is governed by the Southern California Regional Rail Authority (SCRRA), a joint powers authority made up of an 11-member board representing the transportation commissions of Los Angeles, Orange, Riverside, San Bernardino and Ventura counties. Metrolink trains operate on seven routes across a six-county, 538 route-mile network, which includes a portion of northern San Diego County.

Santa Clarita is the third largest city in Los Angeles County and about an hour's drive - or Metrolink ride - north of downtown Los Angeles. The station will connect to the Burbank Airport and downtown Los Angeles.

METROLINK STATION FACTS

n 3 miles to the Vista Canyon station n Orange Line connects Oceanside to Downtown Los Angeles n 15 weekday trains n 6 weekend daily trains n 65 minutes to Union Station n 120 minutes to ARTIC in Anaheim n 3.5 hours to Oceanside n Connects to Amtrak System including Pacific Surfliner

SAND CANYON PLAZA // Master Planned Community // Santa Clarita, California 25 MARKET MARKET OVERVIEW

APARTMENT MARKET Although the area is geographically removed from the majority of LA’s cultural L.A. is young and expensive, a perfect mix for apartment owners. Los Ange- and entertainment attractions, the average rental rate, at about $2,010, is slightly les has one of the highest rates of renter households of any U.S. metro, with above the metro average. The Santa Clarita Valley posted some of the largest roughly half of all households renting their homes. Exorbitant home prices rent gains in LA earlier in the cycle but stabilized now with year-over-year gains are the primary reason for this. The massive gap between average incomes of about 2.9%. Virtually no new product delivered to the submarket in the past and the income required to buy a home in L.A. County makes this the most five years. In early 2019, JSB Development broke ground on their first residential unaffordable housing market in the nation and helps to ensure a permanent, project in the Vista Ranch community near the Metrolink station. The first phase structural source of demand that is extremely attractive to multifamily investors is 480 units and it will be the largest apartment project built in this submarket and developers. Vacancies remain well below historic averages, now standing since 2000. That said, last year was a record-setting period for Santa Clarita at around 4.1%. L.A. multifamily inventory grew by more than 40,000 units this multifamily investment. Multiple major institutional deals, including the largest decade, and around 12,000 additional units are expected to be built by the apartment sale in submarket history, pushed total sales volume to previously end of 2020. These supply additions fall far short of what is needed in a metro unseen levels, nearly double the volume totals of any other year this cycle. This of more than 10 million people. The overall shortage of housing in L.A. County was primarily due to the sale of a few multi-asset portfolios but demand for should underpin demand as the increasingly prohibitive cost of buying a home multifamily investment remains high for the foreseeable future. pushes more Angelenos into an already deep pool of renters.

The Santa Clarita Valley is an affluent, largely residential community, geographically removed from the heart of the metro. Demand has been steady in recent quarters and vacancies remain well below the submarket's historical average. It has a median income near $100,000/year and offers a more secluded, slower-paced environment than most parts of the metro. Demographics are the main draw of the Santa Clarita Valley multifamily market since the area is a lengthy commute from the metro's premier job hubs. Employment and population growth outpaced the wider metro averages. The Santa Clarita and Lancaster valleys traditionally have been a hot spot for aerospace research and development. Some larger employers call the Santa Clarita Valley home including Scorpion Internet Marketing and Logix Credit Union, both of which opened new headquarters here recently.

SAND CANYON PLAZA // Master Planned Community // Santa Clarita, California 27 MARKET OVERVIEW

ASSISTED LIVING MARKET The Santa Clarita Valley, and the Sand Canyon area in particular, is an affluent market with strong demographics indicating demand for assisted living accom- modations and high-income adult children who want to keep their parents near- by. There are several band-name assisted living communities offering independ- ent living, assisted living and memory care including Atria, Oakmont and Sunrise.

The most relevant comps are Atria Santa Clarita and Oakmont Santa Clarita. Atria is located at 24431 Lyons Canyon and offers assisted living ranging from $5,000/month to $7,070/month. A shared memory care suite starts at $2,668/ month. Oakmont is located at 28650 Newhall Ranch Road and offers assisted living ranging from $5,595/month to $8,195/month. A semi-private suite starts at $4,095/month. Oakmont offers both assisted living and memory care.

Sand Canyon’s assisted living community is currently programmed to include 52 studios, 40 one-bedroom and 8 two-bedroom assisted living units aver- aging $5,000/month plus 15 private and 20 shared suite memory care units conservatively priced from $5,000 to $6,000/month. Several national assisted living operators have evaluated the site and expect rates to exceed these estimates. Many best-in-class developers have expressed a strong interest in purchasing a superpad site to develop a high-quality senior community here.

RETAIL MARKET Vacancy rates in the Santa Clarita Valley retail market are now exceptionally low. As of early 2019, 4.5% of the market base was vacant. Construction activity has been minimal for years, with only 79,000 square feet of space being competed between 2010 and 2018. New projects have now broken ground and more than 100,000 square feet of space was under construction in the first quarter of 2019. Lease rates have been steady with an average lease rate of $1.90 per square foot.

SAND CANYON PLAZA // Master Planned Community // Santa Clarita, California 28 MARKET ACTIVE NEW HOME SELLING COMMUNITIES

1 4

3 2 5

SAND CANYON PLAZA

PROJECTS

1. Avalon at Plum Canyon by Toll Brothers 2. Sola at Skyline by Pardee 3. Mystal at Skyline by Tripointe 4. Mirabelle at Plum Canyon by Toll Brothers 5. Celestia by Skyline by Tripointe

SAND CANYON PLAZA // Master Planned Community // Santa Clarita, California 29 MARKET NEW HOME PRICING GRAPH SINGLE FAMILY DETACHED

$850,000

$800,000

$750,000

$700,000 EFFECTIVE BASE BASE PRICEEFFECTIVE $650,000

$600,000

$550,000

$500,000 1,500 1,600 1,700 1,800 1,900 2,000 2,100 2,200 2,300 2,400 2,500 2,600 2,700 2,800 2,900 3,000 3,100 3,200 3,300 3,400 3,500 3,600

SQUARE FEET

Avalon at Plum Canyon by Toll Brothers Sola at Skyline by Pardee Mystral at Skyline by Tripointe Mirabelle at Plum Canyon by Toll Brothers Celestia at Skyline by Tripointe Lot Size - 7,500 sf; Tax Rate - 1.1% Lot Size - 3,000 sf; Tax Rate - 1.75% Lot Size - 6,000; Tax Rate - 1.75% Lot Size - 6,000 sf; Tax Rate - 1.1% Lot Size - 6,500; Tax Rate - 1.75%

SAND CANYON PLAZA // Master Planned Community // Santa Clarita, California 30 MARKET COMPETITIVE NEW HOME PRODUCT

SOLA AT SKYLINE BY PARDEE - SANTA CLARITA Product Type: Detached Total Units: 73 Open Date: 11.03.2018 Sold Units: 45 Minimum Lot Size: 3,000 SF Remaining Units: 28 Tax Rate: 1.75% Overall Absorption Rate: 6.39/mo HOA: $250