471 Acalanes Drive, (Verona Gardens) Sunnyvale (45 Units)

VERONA GARDENS APARTMENT HOMES

OFFERING MEMORANDUM 471 Acalanes Drive, SunSnu4yn7vn1ayvAleacl,aeCl,aCanaelilfsiofDorrrnniviiaae

The informa on coWnteainheTadhvheeerienninofohraresmabeaseonnognivteocnodtonoutusabbinytetihtdesohawecncreeurironaf tchhyea,spbrboupeteerwtnyeogrdiovotehennrostotougrucuesasbrwayendtteheeemeorietw.liaAnbellelr.iWnofefohtrahmveeanpororoenapseosnrhttoyoudolodrubobtteihtsveaerccrsuiorfiauecyrd,cbpeutsrwioweredtoodneopteugmuracrhraenaltsieaeebitol.erA.lsl ianlfeor.ma on should be verified prior to purchase or sale. 11

VERONA GARDENS APARTMENT HOMES

471 Acalanes Drive, Sunnyvale, California

Exclusively Listed By:

Keith Suddjian
Executive Managing Director
650.688.8514

[email protected]

CA RE License #00673961

Michelle Suddjian
Senior Managing Director
650.688.8515

[email protected]

CA RE License #01918902

The informa on contained herein has either been given to us by the owner of the Cindy Suddjian Video Tour:
property or obtained from sources that we deem reliable. We have no reason to doubt its accuracy, Associate
but we do not guarantee it. The value of this investment is dependent upon federal and state tax 650.688.8513
laws, as well as the investment income, the tax bracket and other factors, which your tax advisor
and legal counsel should evaluate. The prospec ve buyer should carefully verify each item of in- [email protected]
come, expense and all other informa on contained herein. Buyer should measure all units prior
to purchase and should NOT rely on square footage figures in this Offering Memorandum. Lis ng CA RE License #02013156
agent and broker have not measured the units.
Newmark Cornish & Carey
PLEASE DO NOT DISTURB RESIDENTS OR RESIDENT MANAGER. A TOUR OF THE 245 Lytton Avenue, Suite 150
PROPERTY CAN BE ARRANGED THROUGH LISTING AGENTS ONLY. Palo Alto, California 94301

650.322.2600 • 650.321.0719 Fax 471 Acalanes Drive

Sunnyvale, California

The informa on coWnteainheTadhvheeerienninofohraresmabeaseonnognivteocnodtonoutusabbinytetihtdesohawecncreeurironaf tchhyea,spbrboupeteerwtnyeogrdiovotehennrostotougrucuesasbrwayendtteheeemeorietw.liaAnbellelr.iWnofefohtrahmveeanpororoenapseosnrhttoyoudolodrubobtteihtsveaerccrsuiorfiauecyrd,cbpeutsrwioweredtoodneopteugmuracrhraenaltsieaeebitol.erA.lsl ianlfeor.ma on should be verified prior to purchase or sale. 22

TABLE OF CONTENTS

OFFERING SUMMARY ..................................................................................................4
UNIT MIX/SCHEDULED INCOME .................................................................................5
PROPERTY OVERVIEW .............................................................................................6 7
PROFORMA OPERATING STATEMENT .........................................................................8
RENT ROLL..............................................................................................................9 10
PROPERTY PHOTOGRAPHS .................................................................................11 15
AERIAL MAP .........................................................................................................16 17
PARCEL MAP/AREA MAPS ...................................................................................18 19
SITE PLAN ....................................................................................................................20
FLOORPLANS.........................................................................................................21 22
RENT COMPARABLES...........................................................................................23 28
COMPARABLE SALES............................................................................................29 30
LOCATION OVERVIEW ................................................................................................31
FOOTNOTES AND DISCLAIMERS.........................................................................32 33

471 Acalanes Drive
Sunnyvale, California

The informa on coWnteainheTadhvheeerienninofohraresmabeaseonnognivteocnodtonoutusabbinytetihtdesohawecncreeurironaf tchhyea,spbrboupeteerwtnyeogrdiovotehennrostotougrucuesasbrwayendtteheeemeorietw.liaAnbellelr.iWnofefohtrahmveeanpororoenapseosnrhttoyoudolodrubobtteihtsveaerccrsuiorfiauecyrd,cbpeutsrwioweredtoodneopteugmuracrhraenaltsieaeebitol.erA.lsl ianlfeor.ma on should be verified prior to purchase or sale. 33

OFFERING SUMMARY

Property Name Verona Gardens Apartment Homes

Address 471 Acalanes Drive, Sunnyvale, California 94086

Price $18,950,000

# of Units 45

Price per Unit $421,111

Gross Annual Scheduled Income (Current) $1,255,597

Gross Income Mul plier (Current) 15.09

Net Opera ng Income (Current) $768,812

Capitaliza on Rate (Current) 4.06%

Gross Annual Scheduled Income (Market) $1,277,361

Gross Income Mul plier (Market) 14.84

Net Opera ng Income (Market) $788,870

Capitaliza on Rate (Market) 4.16%

Price per Sq. Ft. (Assumed ±37,069 Sq. Ft. - Source: LandVision) $511

Zoning R3

Assessor’s Parcel Number 161-11-007

Year Built 1963

Lot Size (Per LandVision) ±1.57 Acres

See Offering Summary Footnotes and Disclaimers at the end of this Offering Memorandum.

471 Acalanes Drive
Sunnyvale, California

The informa on coWnteainheTadhvheeerienninofohraresmabeaseonnognivteocnodtonoutusabbinytetihtdesohawecncreeurironaf tchhyea,spbrboupeteerwtnyeogrdiovotehennrostotougrucuesasbrwayendtteheeemeorietw.liaAnbellelr.iWnofefohtrahmveeanpororoenapseosnrhttoyoudolodrubobtteihtsveaerccrsuiorfiauecyrd,cbpeutsrwioweredtoodneopteugmuracrhraenaltsieaeebitol.erA.lsl ianlfeor.ma on should be verified prior to purchase or sale. 44

UNIT MIX/SCHEDULED INCOME

2Bdx1Ba
42%

1Bdx1Ba
58%

# of Units Unit Type Current Rent Average Current Rent Es mated Market Rent
26 1x1 $1,914 - $2,315 $2,134
19 2x1 $2,250 - $2,615 $2,490 $2,164
45 $2,285
$102,805 $2,545
$104,619
($2,325 Average)

See Unit Mix/Scheduled Income Footnotes and Disclaimers at the end of this Offering Memorandum.

471 Acalanes Drive
Sunnyvale, California

The informa on coWnteainheTadhvheeerienninofohraresmabeaseonnognivteocnodtonoutusabbinytetihtdesohawecncreeurironaf tchhyea,spbrboupeteerwtnyeogrdiovotehennrostotougrucuesasbrwayendtteheeemeorietw.liaAnbellelr.iWnofefohtrahmveeanpororoenapseosnrhttoyoudolodrubobtteihtsveaerccrsuiorfiauecyrd,cbpeutsrwioweredtoodneopteugmuracrhraenaltsieaeebitol.erA.lsl ianlfeor.ma on should be verified prior to purchase or sale. 55

PROPERTY OVERVIEW • Granite countertops, stainless steel appliances (most units)
• Most upstairs units have a private balcony
PROPERTY DESCRIPTION • Resident storage lockers off carports
• Laminate flooring
The Verona Gardens Apartment Homes is a very a rac ve 2-story
garden style apartment complex. The property has excellent curb IMPROVEMENTS AND RENOVATIONS
appeal and presence and has been significantly renovated in 2013- COMPLETED (±2013-2015)
2015. The property offers a spacious and beau fully landscaped
central courtyard with an a rac ve swimming pool, outdoor barbe- Approximately $2,000,050 was invested in improvements and reno-
cue and picnic area. The buildings are wood frame with primarily a va ons during the period of 2013-2015. These include:
stucco exterior along with beau ful ipe wood
siding along the front of the community. INTERIOR
• Renova on of the interiors of all 45 units
The property is in a highly desirable Sunnyvale neighborhood • New laminate floor, baseboard, trim, bathroom floor, all
near the border of Mountain View. The neighborhood consists
primarily of apartments, condominiums, townhomes and single door knobs, closet rails
family homes. It’s conveniently located with easy access to: • New kitchen cabinet doors, drawer fronts and hardware
• New kitchen countertop
• Highways 85, 237, 101 and 280 • New paint
• Cherry Chase Shopping Center (Safeway Grocery Store) • New ligh ng fixtures
• Many convenient retailers located along El Camino Real • New appliances: refrigerator, microwave, oven/stove,
• Downtown Mountain View and Downtown Sunnyvale
• Major Silicon Valley employment centers dishwasher
• Caltrain and Light Rail Sta ons • New kitchen faucet, bath faucet, bath sink, kitchen sink,
• Palo Alto Medical Clinic
• Sylvan Park (Tennis Courts) bathroom mirror, garbage disposal
• New window blinds
PROPERTY HIGHLIGHTS & IMPROVEMENTS • New baseboard hea ng unit (some units)
• Laundry room improvements
• Highly sought a er loca on • New sliding door
• Excellent unit mix, desirable and spacious floorplans
• Large central courtyard EXTERIOR
• Barbecue/picnic area • Stucco smoothing
• Sparkling swimming pool • New ipe wood siding
• Beau fully landscaped grounds with elegant entry to • New paint
• New property gate
the community • New steel fence north side of property
• Well located leasing office off the courtyard • New roof and downspouts
• Covered parking • New Roof ligh ng
• Dual pane windows and sliding doors • Pool area improvements
• Walk-in closet off living room (some 2 BR units) • New entry feature element
• All electric kitchens equipped with a refrigerator, dishwasher, • New mailbox kiosk

oven/range, built-in microwave oven, garbage disposal and a
designer hansgrohe faucet.

See Property Overview Footnotes and Disclaimers at the end of this Offering Memorandum.

471 Acalanes Drive
Sunnyvale, California

The informa on coWnteainheTadhvheeerienninofohraresmabeaseonnognivteocnodtonoutusabbinytetihtdesohawecncreeurironaf tchhyea,spbrboupeteerwtnyeogrdiovotehennrostotougrucuesasbrwayendtteheeemeorietw.liaAnbellelr.iWnofefohtrahmveeanpororoenapseosnrhttoyoudolodrubobtteihtsveaerccrsuiorfiauecyrd,cbpeutsrwioweredtoodneopteugmuracrhraenaltsieaeebitol.erA.lsl ianlfeor.ma on should be verified prior to purchase or sale. 66

PROPERTY OVERVIEW

IMPROVEMENTS AND RENOVATIONS UTILITIES
• Units are individually metered for electricity; master metered
COMPLETED (±2013-2015 - CONTINUED)
for water.
EXTERIOR CONTINUED
• New signage UTILITY PAYMENT RESPONSIBILITIES
• New landscape design
• New landscaping Garbage Owner; RUBS program in place
• Wood fascia: installed new primed, finger joint pine and Common Area Electricity Owner
Water Owner; RUBS program in place
fascia, eve vent added Electricity within Units Resident
• New light fixtures Gas within Units Not applicable, kitchens and
• New light poles hea ng systems are electric
• New front doors and unit numbering Gas for Hot Water Owner; RUBS program in place
• Resurfaced entry step to first floor units Sewer Owner; RUBS program in place
• New barbecue
• New outdoor furniture (barbecue and courtyard area) PROPOSED FINANCING
• New pool furniture
• New doors to carports, laundry room and storage closets Buyer has the opportunity to obtain a new loan of their choice.
The amount of the loan is dependent on the lender, loan program
LAUNDRY FACILITIES and buyer’s qualifica ons. Available loan amounts and the loan
• 2 conveniently located laundry rooms. Each have 2 coin- terms are subject to change and are not guaranteed.

operated washers and 2 coin-operated dryers. Equipment is
leased from Wash Laundry.

HEATING & AIR CONDITIONING EXISTING LOAN SUMMARY
• Electric Baseboard Heat Property is owned free and clear of debt

PARKING SCHOOLS Vargas Elementary School
Elementary: 776 API
• Tuck under building spaces: 44
Middle: Sunnyvale Middle School
• Uncovered spaces: 22 866 API
High School:
• Total spaces: 66 Homestead High School
873 API
• Plus extra on street parking at the sec on of Acalanes Drive

that runs along the eastern side of the property

ROOF COVERINGS
• Flat 3-ply modified bitumen - certainteed (replaced ±2014)

DOMESTIC HOT WATER SYSTEM
• 4 water heaters

See Property Overview Footnotes and Disclaimers at the end of this Offering Memorandum.

471 Acalanes Drive
Sunnyvale, California

The informa on coWnteainheTadhvheeerienninofohraresmabeaseonnognivteocnodtonoutusabbinytetihtdesohawecncreeurironaf tchhyea,spbrboupeteerwtnyeogrdiovotehennrostotougrucuesasbrwayendtteheeemeorietw.liaAnbellelr.iWnofefohtrahmveeanpororoenapseosnrhttoyoudolodrubobtteihtsveaerccrsuiorfiauecyrd,cbpeutsrwioweredtoodneopteugmuracrhraenaltsieaeebitol.erA.lsl ianlfeor.ma on should be verified prior to purchase or sale. 77

PROFORMA OPERATING STATEMENT Current Proforma (Market)
$1,233,664 (1) $1,255,428 (7)
INCOME 8,240 (2)
Gross Scheduled Rents 8,240 (2) 13,693 (2)
Plus: Other Rents 13,693 (2) 1,277,361
Plus: Other Income(Laundry, et. al.) 1,255,597 50,217 (3)
Gross Scheduled Income 49,347 (3) $1,227,144
Less: Vacancy, Concessions and Collec on Loss $1,206,250
Effec ve Gross Income $64,570 (2)
$64,570 (2) 3,937 (2)
EXPENSES 3,937 (2)
Compensa on & Employee Allowance 25,903 (2)
Adver sing & Promo on 25,903 (2) 1,750 (2)
U li es (Net of RUBS) 1,750 (2)
Life Safety (Security) 34,152 (2)
Repairs & Maintenance (Ground & Bldg) 34,152 (2) 9,607 (2)
Administra ve Expenses 9,607 (2)
Management Fees 50,541 (8)
Insurance 49,705 (8) 15,634 (2)
Property Taxes 15,634 (2) 219,725 (4)
Special Assessments 219,725 (4)
Replacement Reserves ($250 per unit) 950 (5)
Other Expense 950 (5) 11,250 (6)
Total Opera ng Expense 11,250 (6)
Net Opera ng Income 255 (2)
255 (2) 438,274
Opera ng Expenses as a percentage (%) of Gross Scheduled Income 437,438 $788,870
Opera ng Expenses per Unit $768,812
Opera ng Expenses per SF (assumes ±37,069 SF) 34.31%
34.84% $9,739
$9,721 $11.82
$11.80

See Proforma Operating Statement Footnotes and Disclaimers at the end of this Offering Memorandum.

471 Acalanes Drive
Sunnyvale, California

The informa on coWnteainheTadhvheeerienninofohraresmabeaseonnognivteocnodtonoutusabbinytetihtdesohawecncreeurironaf tchhyea,spbrboupeteerwtnyeogrdiovotehennrostotougrucuesasbrwayendtteheeemeorietw.liaAnbellelr.iWnofefohtrahmveeanpororoenapseosnrhttoyoudolodrubobtteihtsveaerccrsuiorfiauecyrd,cbpeutsrwioweredtoodneopteugmuracrhraenaltsieaeebitol.erA.lsl ianlfeor.ma on should be verified prior to purchase or sale. 88

RENT ROLL

Unit UnitType CurrentRent Current Est.Market Deposit MoveIn LeaseTo Comments
PetRent Rent 7/1/16 6/30/17

1 1x1 $2,145 $2,164 $500

2 2x1 $2,252 $2,545 $700 2/17/17 2/16/18 BaseRentis$2,545/month.CurrentRentshownin
"CurrentRent"columnreflectseffectiverentresulting

from6weeksfreerentamortizedover12months.

3 2x1 $2,250 $2,545 $1,950 6/8/13 1/31/16

4 2x1 $2,475 $2,545 $800 7/6/13 5/31/17

5 1x1 $2,145 $2,164 $500 7/25/16 7/24/17

6 1x1 $2,270 $2,164 $600 4/27/15 6/30/17

7 1x1 $2,230 $2,164 $550 12/31/14 6/30/17

8 1x1 $1,914.31 $2,164 $600 12/27/16 12/26/17 BaseRentis$2,164/month.CurrentRentshownin
"CurrentRent"columnreflectseffectiverentresulting

from6weeksfreerentamortizedover12months.

9 1x1 $2,145 $2,164 $500 8/6/16 8/5/17

10 1x1 $2,025 $2,164 $600 11/17/13 5/31/17

11 1x1 $2,195 $50 $2,164 $1,250 10/7/15 7/31/17

12 1x1 $2,155 $2,164 $600 10/4/14 10/31/17

14 1x1 $2,145 $2,164 $500 7/14/16 7/13/17

15 1x1 $2,145 $2,164 $600 4/18/15 4/30/17

16 1x1 $2,145 $2,164 $600 12/28/13 3/31/17

17 2x1 $2,545 $2,545 Ͳ 3/5/16 4/4/16 MaintenanceTech’sUnit

18 1x1 $2,145 $2,164 $500 4/10/16 4/9/17

19 2x1 $2,555 $2,545 $600 1/16/16 1/15/18

20 2x1 $2,485 $2,545 $800 3/1/14 2/28/17

21 1x1 $2,145 $2,164 $500 6/4/16 6/3/17

22 2x1 $2,580 $2,545 $600 9/17/15 9/30/17

23 2x1 $2,485 $2,545 $3,185 4/7/15 3/31/17

24 2x1 $2,545 $2,545 $600 10/9/16 10/8/17

See Rent Roll Footnotes and Disclaimers at the end of this Offering Memorandum.

471 Acalanes Drive
Sunnyvale, California

The informa on coWnteainheTadhvheeerienninofohraresmabeaseonnognivteocnodtonoutusabbinytetihtdesohawecncreeurironaf tchhyea,spbrboupeteerwtnyeogrdiovotehennrostotougrucuesasbrwayendtteheeemeorietw.liaAnbellelr.iWnofefohtrahmveeanpororoenapseosnrhttoyoudolodrubobtteihtsveaerccrsuiorfiauecyrd,cbpeutsrwioweredtoodneopteugmuracrhraenaltsieaeebitol.erA.lsl ianlfeor.ma on should be verified prior to purchase or sale. 99

RENT ROLL

Unit UnitType CurrentRent Current Est.Market Deposit MoveIn LeaseTo Comments
25 1x1 $2,145 PetRent Rent 6/11/16 6/10/17

$2,164 $500

26 2x1 $2,590 $50 $2,545 $1,550 9/25/15 9/30/17

27 1x1 $2,190 $2,164 $600 7/4/14 8/31/17

28 2x1 $2,251.35 $2,545 $700 12/31/16 12/30/17 BaseRentis$2,545/month.CurrentRentshownin
"CurrentRent"columnreflectseffectiverentresulting

from6weeksfreerentamortizedover12months.

29 1x1 $2,140 $2,164 $500 5/1/16 4/30/17

30 2x1 $2,470 $2,545 $800 7/6/13 6/30/17

31 1x1 $1,914 $2,164 $600 2/4/17 2/3/18 BaseRentis$2,164/month.CurrentRentshownin
"CurrentRent"columnreflectseffectiverentresulting

from6weeksfreerentamortizedover12months.

32 2x1 $2,615 $2,545 $600 10/2/15 10/31/17

33 1x1 $2,315 $2,164 $600 5/22/15 5/31/17

34 2x1 $2,545 $2,545 $700 11/5/16 11/4/17

35 1x1 $2,190 $2,164 $600 10/20/13 10/31/17

36 2x1 $2,480 $2,545 $800 3/21/15 3/31/17

37 1x1 $2,050 $2,164 $600 12/1/13 11/30/17

38 2x1 $2,515 $2,545 $800 4/15/15 4/30/17

39 1x1 $2,140 $2,164 $600 1/31/15 1/31/18

40 2x1 $2,545 $2,545 Ͳ Model Ͳ UnitbeingheldVacantforshowing.

41 1x1 $2,145 $2,164 $500 7/14/16 7/13/17

42 1x1 $2,180 $2,164 $500 12/18/15 12/17/17

43 1x1 $2,145 $2,164 $500 7/1/16 6/30/17

44 2x1 $2,545 $2,545 $600 8/20/16 8/19/17

45 1x1 $1,983.67 $2,164 $600 12/29/16 12/28/17 BaseRentis$2,164/month.CurrentRentshownin
"CurrentRent"columnreflectseffectiverentresulting

from4weeksfreerentamortizedover12months.

46 2x1 $2,590 $2,545 $3,390 6/28/15 3/27/17

45 $102,805.33 $100 $104,619 $34,275

See Rent Roll Footnotes and Disclaimers at the end of this Offering Memorandum.

471 Acalanes Drive
Sunnyvale, California

The informa on coWnteainheTadhvheeerienninofohraresmabeaseonnognivteocnodtonoutusabbinytetihtdesohawecncreeurironaf tchhyea,spbrboupeteerwtnyeogrdiovotehennrostotougrucuesasbrwayendtteheeemeorietw.liaAnbellelr.iWnofefohtrahmveeanpororoenapseosnrhttoyoudolodrubobtteihtsveaerccrsuiorfiauecyrd,cbpeutsrwioweredtoodneopteugmuracrhraenaltsieaeebitol.erA.lsl ianlfeor.ma on should be verified prior to purchase or sale. 1100

PROPERTY PHOTOGRAPHS

471 Acalanes Drive
Sunnyvale, California

The informa on coWnteainheTadhvheeerienninofohraresmabeaseonnognivteocnodtonoutusabbinytetihtdesohawecncreeurironaf tchhyea,spbrboupeteerwtnyeogrdiovotehennrostotougrucuesasbrwayendtteheeemeorietw.liaAnbellelr.iWnofefohtrahmveeanpororoenapseosnrhttoyoudolodrubobtteihtsveaerccrsuiorfiauecyrd,cbpeutsrwioweredtoodneopteugmuracrhraenaltsieaeebitol.erA.lsl ianlfeor.ma on should be verified prior to purchase or sale. 111

PROPERTY PHOTOGRAPHS

471 Acalanes Drive
Sunnyvale, California

The informa on coWnteainheTadhvheeerienninofohraresmabeaseonnognivteocnodtonoutusabbinytetihtdesohawecncreeurironaf tchhyea,spbrboupeteerwtnyeogrdiovotehennrostotougrucuesasbrwayendtteheeemeorietw.liaAnbellelr.iWnofefohtrahmveeanpororoenapseosnrhttoyoudolodrubobtteihtsveaerccrsuiorfiauecyrd,cbpeutsrwioweredtoodneopteugmuracrhraenaltsieaeebitol.erA.lsl ianlfeor.ma on should be verified prior to purchase or sale. 1122

PROPERTY PHOTOGRAPHS

471 Acalanes Drive
Sunnyvale, California

The informa on coWnteainheTadhvheeerienninofohraresmabeaseonnognivteocnodtonoutusabbinytetihtdesohawecncreeurironaf tchhyea,spbrboupeteerwtnyeogrdiovotehennrostotougrucuesasbrwayendtteheeemeorietw.liaAnbellelr.iWnofefohtrahmveeanpororoenapseosnrhttoyoudolodrubobtteihtsveaerccrsuiorfiauecyrd,cbpeutsrwioweredtoodneopteugmuracrhraenaltsieaeebitol.erA.lsl ianlfeor.ma on should be verified prior to purchase or sale. 1133

PROPERTY PHOTOGRAPHS

471 Acalanes Drive
Sunnyvale, California

The informa on coWnteainheTadhvheeerienninofohraresmabeaseonnognivteocnodtonoutusabbinytetihtdesohawecncreeurironaf tchhyea,spbrboupeteerwtnyeogrdiovotehennrostotougrucuesasbrwayendtteheeemeorietw.liaAnbellelr.iWnofefohtrahmveeanpororoenapseosnrhttoyoudolodrubobtteihtsveaerccrsuiorfiauecyrd,cbpeutsrwioweredtoodneopteugmuracrhraenaltsieaeebitol.erA.lsl ianlfeor.ma on should be verified prior to purchase or sale. 1144

PROPERTY PHOTOGRAPHS

471 Acalanes Drive
Sunnyvale, California

The informa on coWnteainheTadhvheeerienninofohraresmabeaseonnognivteocnodtonoutusabbinytetihtdesohawecncreeurironaf tchhyea,spbrboupeteerwtnyeogrdiovotehennrostotougrucuesasbrwayendtteheeemeorietw.liaAnbellelr.iWnofefohtrahmveeanpororoenapseosnrhttoyoudolodrubobtteihtsveaerccrsuiorfiauecyrd,cbpeutsrwioweredtoodneopteugmuracrhraenaltsieaeebitol.erA.lsl ianlfeor.ma on should be verified prior to purchase or sale. 1155

AERIAL MAP

VERONA GARDENS

471 Acalanes Drive
Sunnyvale, California

The informa on coWnteainheTadhvheeerienninofohraresmabeaseonnognivteocnodtonoutusabbinytetihtdesohawecncreeurironaf tchhyea,spbrboupeteerwtnyeogrdiovotehennrostotougrucuesasbrwayendtteheeemeorietw.liaAnbellelr.iWnofefohtrahmveeanpororoenapseosnrhttoyoudolodrubobtteihtsveaerccrsuiorfiauecyrd,cbpeutsrwioweredtoodneopteugmuracrhraenaltsieaeebitol.erA.lsl ianlfeor.ma on should be verified prior to purchase or sale. 1166

AERIAL MAP VERONA GARDENS APARTMENT HOMES

Downtown
Mountain View

Mountain View
Shopping Center

Downtown
Sunnyvale

Shopping Center

471 Acalanes Drive
Sunnyvale, California

The informa on coWnteainheTadhvheeerienninofohraresmabeaseonnognivteocnodtonoutusabbinytetihtdesohawecncreeurironaf tchhyea,spbrboupeteerwtnyeogrdiovotehennrostotougrucuesasbrwayendtteheeemeorietw.liaAnbellelr.iWnofefohtrahmveeanpororoenapseosnrhttoyoudolodrubobtteihtsveaerccrsuiorfiauecyrd,cbpeutsrwioweredtoodneopteugmuracrhraenaltsieaeebitol.erA.lsl ianlfeor.ma on should be verified prior to purchase or sale. 1177

PARCEL MAP

471 Acalanes Drive
Sunnyvale, California

The informa on coWnteainheTadhvheeerienninofohraresmabeaseonnognivteocnodtonoutusabbinytetihtdesohawecncreeurironaf tchhyea,spbrboupeteerwtnyeogrdiovotehennrostotougrucuesasbrwayendtteheeemeorietw.liaAnbellelr.iWnofefohtrahmveeanpororoenapseosnrhttoyoudolodrubobtteihtsveaerccrsuiorfiauecyrd,cbpeutsrwioweredtoodneopteugmuracrhraenaltsieaeebitol.erA.lsl ianlfeor.ma on should be verified prior to purchase or sale. 1188

AREA MAPS

SITE

SITE

471 Acalanes Drive
Sunnyvale, California

The informa on coWnteainheTadhvheeerienninofohraresmabeaseonnognivteocnodtonoutusabbinytetihtdesohawecncreeurironaf tchhyea,spbrboupeteerwtnyeogrdiovotehennrostotougrucuesasbrwayendtteheeemeorietw.liaAnbellelr.iWnofefohtrahmveeanpororoenapseosnrhttoyoudolodrubobtteihtsveaerccrsuiorfiauecyrd,cbpeutsrwioweredtoodneopteugmuracrhraenaltsieaeebitol.erA.lsl ianlfeor.ma on should be verified prior to purchase or sale. 1199

SITE PLAN

T PARKING

31 32 33 34 35 L 36 Lower Level
9 10 37 1 Bedroom/1 Bath
S 11
S S Upper Level
8 S 1 Bedroom/1 Bath
30
PARKING PARKING Lower Level
2 Bedroom/1 Bath
29 BBQ 12 38
39 Upper Level
S S 2 Bedroom/1 Bath

28 7 POOL Lower Level
2 Bedroom/1 Bath
14 40 With Connecting Leasing Office

27 S T Trash
S Stairs
S SS 41 M Mailbox
L Laundry
PARKING 6 19 18 17 PARKING
26 46 45 44 15 42
43
25 S

S 16

24 5 S S ENTRY

S 3 21

4 22 M
23 L
21 20

ACALANES DRIVE

Note: Site Plan is artist's conception and subject to change. Lot configuration and placement of buildings and features on the lot are approximate and not guaranteed as accurate.
Prospective buyers should not rely on this site plan in making their purchase decision and should carefully verify the above items and all other information herein. This Site Plan is not
guaranteed to be accurate by Brokers, Agents or Seller.

471 Acalanes Drive
Sunnyvale, California

The informa on coWnteainheTadhvheeerienninofohraresmabeaseonnognivteocnodtonoutusabbinytetihtdesohawecncreeurironaf tchhyea,spbrboupeteerwtnyeogrdiovotehennrostotougrucuesasbrwayendtteheeemeorietw.liaAnbellelr.iWnofefohtrahmveeanpororoenapseosnrhttoyoudolodrubobtteihtsveaerccrsuiorfiauecyrd,cbpeutsrwioweredtoodneopteugmuracrhraenaltsieaeebitol.erA.lsl ianlfeor.ma on should be verified prior to purchase or sale. 2200

ClosetFLOORPLANS Balcony Terrace

1 Bedroom x 1 Bath Kitchen

Bedroom
Closet

Hallway Living Room Dining Room

Closet

Living Room Closet Closet Hallway

Bedroom

Dining Room Kitchen

Any square footage figures, room dimensions, features and layouts are not guaranteed by Brokers, Agents or Seller. Buyer should measure all units prior to purchase to determine
accurate dimensions and square footage. Unit sizes and room dimensions may vary from sizes shown and units of the same type may vary in size, features and layout. The actual
floorplans may have layouts and features that vary from those shown in this Offering Memorandum. The apartment units that are associated with a par cular floorplan may not
be correct or may have floorplans that are reverse or mirror images from those shown. Buyer should verify layout, size and features of each unit prior to purchase, and not rely on
these floorplans. Each floorplan is an ar st’s concep on as it is not to scale. The above 1 bedroom floorplans may not represent all of the 1 bedroom floorplans at the property.

471 Acalanes Drive
Sunnyvale, California

The informa on coWnteainheTadhvheeerienninofohraresmabeaseonnognivteocnodtonoutusabbinytetihtdesohawecncreeurironaf tchhyea,spbrboupeteerwtnyeogrdiovotehennrostotougrucuesasbrwayendtteheeemeorietw.liaAnbellelr.iWnofefohtrahmveeanpororoenapseosnrhttoyoudolodrubobtteihtsveaerccrsuiorfiauecyrd,cbpeutsrwioweredtoodneopteugmuracrhraenaltsieaeebitol.erA.lsl ianlfeor.ma on should be verified prior to purchase or sale. 2211

FLOORPLANS

2 Bedroom x 1 Bath

Balcony Terrace

Kitchen

Dining Room Living Room

Closet Hallway Closet Closet
Bedroom
Master
Bedroom

Any square footage figures, room dimensions, features and layouts are not guaranteed by Brokers, Agents or Seller. Buyer should measure all units prior to purchase to determine
accurate dimensions and square footage. Unit sizes and room dimensions may vary from sizes shown and units of the same type may vary in size, features and layout. The actual
floorplans may have layouts and features that vary from those shown in this Offering Memorandum. The apartment units that are associated with a par cular floorplan may not
be correct or may have floorplans that are reverse or mirror images from those shown. Buyer should verify layout, size and features of each unit prior to purchase, and not rely
on these floorplans. Each floorplan is an ar st’s concep on as it is not to scale. The above 2 bedroom floorplan may not represent all of the 2 bedroom floorplans at the property.

471 Acalanes Drive
Sunnyvale, California

The informa on coWnteainheTadhvheeerienninofohraresmabeaseonnognivteocnodtonoutusabbinytetihtdesohawecncreeurironaf tchhyea,spbrboupeteerwtnyeogrdiovotehennrostotougrucuesasbrwayendtteheeemeorietw.liaAnbellelr.iWnofefohtrahmveeanpororoenapseosnrhttoyoudolodrubobtteihtsveaerccrsuiorfiauecyrd,cbpeutsrwioweredtoodneopteugmuracrhraenaltsieaeebitol.erA.lsl ianlfeor.ma on should be verified prior to purchase or sale. 222

RENT COMPARABLES

SUBJECT PROPERTY Unit Type Est. Market Rent Approx. SF Rent/SF Comments
Verona Gardens 1x1 $2,164 - -
471 Acalanes Drive - RUBS: Yes
Sunnyvale 2x1 $2,545 - A/C: No
# of Units: 45 Interior W/D: No
Year Built: 1963
Occupancy: 97.78%

#1 Unit Type Asking Rent Approx. SF Rent/SF Comments
Olive Gardens Jr. 1x1 $1,900 - $2,100 535 $3.55 - $3.93
1081 W. Olive Avenue 1x1 $2,225 - $2,500 672 $3.31 - $3.72 RUBS: Yes
Sunnyvale 2x1 $2,610 - $2,840 936 $2.79 - $3.03 A/C: No
# of Units: 245 Interior W/D: No
Year Built: 1965
Occupancy: 99.59% Comments

Note: Rent range based on loca on in the property. Offering $150 move-in bonus. RUBS: No
A/C: No
#2 Unit Type Asking Rent Approx. SF Rent/SF Interior W/D: No
Olive West Jr. 1x1 $2,080 558 $3.73
1229 Vicente Drive 1x1
Sunnyvale 2x1 $2,285 - $2,435 725 - 747 $3.15 - $3.26
# of Units: 420 $2,665 - $2,840 925 $2.88 - $3.07
Year Built: 1972

#3 Unit Type Asking Rent Approx. SF Rent/SF Comments
Shadowbrook Jr. 1x1 $2,483 565
235 Bernardo Avenue 1x1 800 $4.39 RUBS: Yes
Sunnyvale $2,383 - $2,758 $2.98 - $3.45 A/C: Renovated units only
# of Units: 216 Interior W/D: Renovated
Year Built: 1969
Occupancy: 95% units only
Renova on:
- New cabinets
- Quartz countertops
- Stainless steel appliances

Note: High end of the rent range is for renovated units.

#4 Unit Type Asking Rent Approx. SF Rent/SF Comments
Four Palms 1x1 $1,950
1281 Ayala Drive 2x1 $2,450 614 - 627 $3.11 - $3.18 RUBS: No
Sunnyvale A/C: Nos
# of Units: 16 773 - 834 $2.94 - $3.17 Interior W/D: No
Year Built: 1964
Occupancy: 94%

471 Acalanes Drive
Sunnyvale, California

The informa on coWnteainheTadhvheeerienninofohraresmabeaseonnognivteocnodtonoutusabbinytetihtdesohawecncreeurironaf tchhyea,spbrboupeteerwtnyeogrdiovotehennrostotougrucuesasbrwayendtteheeemeorietw.liaAnbellelr.iWnofefohtrahmveeanpororoenapseosnrhttoyoudolodrubobtteihtsveaerccrsuiorfiauecyrd,cbpeutsrwioweredtoodneopteugmuracrhraenaltsieaeebitol.erA.lsl ianlfeor.ma on should be verified prior to purchase or sale. 2233

RENT COMPARABLES

#5 Unit Type Asking Rent Approx. SF Rent/SF Comments
Palm Villa Apartments 1x1 $1,995 - $2,185 750
1209 Ayala Drive 2x1 $2,350 - $2,695 975 $2.66 - $2.91 RUBS: Yes
Sunnyvale $2.41 - $2.76 A/C: No
# of Units: 81 Asking Rent Approx. SF Interior W/D: No
Year Built: 1963 Renova on:
$2,045 700 - New cabinets
Occupancy: 96% - Granite countertops

Note: High end of the rent range is for renovated units.

#6 Unit Type Rent/SF Comments
Cathay Lotus 1x1
425 S. Bernardo Ave. $2.92 RUBS: No
Sunnyvale A/C: No
# of Units: 86 Interior W/D: No
Year Built: 1969
Occupancy: 98%

Note: Offering one month free rent.

#7 Unit Type Asking Rent Approx. SF Rent/SF Comments
Manzanita Apartments 1x1 $2,095 700 $2.99
457 Acalanes Drive RUBS: No
Sunnyvale A/C: Yes
# of Units: 28 Interior W/D: No
Year Built: 1962 Features: Private pa o or
balcony

Note: Offering $500 move-in bonus.

#8 Unit Type Asking Rent Approx. SF Rent/SF Comments
Woodacre Apartments 1x1 $2,150 740
1260 Ayala Drive 2x1 940 $2.91 RUBS: Yes
Sunnyvale $2,100 - $2,350 $2.23 - $2.50 A/C: No
# of Units: 82 Interior W/D: No
Year Built: 1975 Renova on:
Occupancy: 99% - New cabinets
- New bathroom vanity

Note: Second bedroom in the 2 bedroom 1 bath is a lo . High end of the rent range is for renovated units.

#9 Unit Type Asking Rent Approx. SF Rent/SF Comments
Balboa Apartments 1x1 $2,195 800 $2.74
151 S Bernardo Avenue RUBS: Yes
Sunnyvale A/C: No
# of Units: 60 Interior W/D: No
Year Built: 1967 Renova on:
Occupancy: 98.33% - Granite countertops
- Stainless steel appliances

471 Acalanes Drive
Sunnyvale, California

The informa on coWnteainheTadhvheeerienninofohraresmabeaseonnognivteocnodtonoutusabbinytetihtdesohawecncreeurironaf tchhyea,spbrboupeteerwtnyeogrdiovotehennrostotougrucuesasbrwayendtteheeemeorietw.liaAnbellelr.iWnofefohtrahmveeanpororoenapseosnrhttoyoudolodrubobtteihtsveaerccrsuiorfiauecyrd,cbpeutsrwioweredtoodneopteugmuracrhraenaltsieaeebitol.erA.lsl ianlfeor.ma on should be verified prior to purchase or sale. 2244

RENT COMPARABLES

#10 Unit Type Asking Rent Approx. SF Rent/SF Comments
Del Monico Apts. 560 $3.92
1240 Dale Avenue 1x1 $2,195 RUBS: No
Mountain View A/C: Yes (Wall)
# of Units: 49 Interior W/D: No
Year Built: 1964 Renova on:
Occupancy: 95.92% - Granite countertops
- Cabinets ±2 years old

#11 Unit Type Asking Rent Approx. SF Rent/SF Comments
Parallel Apartments 1x1 $2,449 - $2,700
1105-1157 W Olive Ave 720 $3.40 - $3.75 RUBS: Yes
A/C: Yes (Wall)
Sunnyvale Interior W/D: Yes
# of Units: 64
Year Built: 1964

Note: Formerly Castlemont Garden Apartments. Property is undergoing major renova on. Units have been completely remodeled. 1-2 month move-in bonus.

#12: Reserve at Unit Type Asking Rent Approx. SF Rent/SF Comments
Mountain View 1x1 $2,832 - $2,901 694 $4.08 - $4.18
870 E. El Camino Real 1x1 $2,675 - $2,793 748 $3.58 - $3.73 RUBS: Yes
Mountain View 2x1 $3,321 - $3,558 874 $3.80 - $4.07 A/C: No
# of Units: 180 Interior W/D: No
Year Built: 1965
Occupancy: 88%

Note: Smaller 1 bedrooms are higher in rent because they’re single story units

#13 Unit Type Asking Rent Approx. SF Rent/SF Comments
Citra Apartments 1x1 $2,717 - $2,962 591
745 S Bernardo Avenue 1x1 $2,761 - $3,011 767 $4.60 - $5.01 RUBS: Yes
Sunnyvale $3.60 - $3.93 A/C: Yes
# of Units: 147 Interior W/D: Yes
Year Built: 1968 Renova on:
Occupancy: 93% - Granite countertops
- Stainless steel appliances
- Features Private pa o or
balcony

Note: Higher end of the rent range is for renovated units.

471 Acalanes Drive
Sunnyvale, California

The informa on coWnteainheTadhvheeerienninofohraresmabeaseonnognivteocnodtonoutusabbinytetihtdesohawecncreeurironaf tchhyea,spbrboupeteerwtnyeogrdiovotehennrostotougrucuesasbrwayendtteheeemeorietw.liaAnbellelr.iWnofefohtrahmveeanpororoenapseosnrhttoyoudolodrubobtteihtsveaerccrsuiorfiauecyrd,cbpeutsrwioweredtoodneopteugmuracrhraenaltsieaeebitol.erA.lsl ianlfeor.ma on should be verified prior to purchase or sale. 2255

RENT COMPARABLES

1 Bedroom x 1 Bath $2,886

Average Asking Rent of Comparables: $2,324
Verona Gardens Est. Market Rent: $2,164

Verona Gardens Current Average Rent: $2,134

$2,734

$2,571 $2,575

$2,500 $2,360 $2,363
$2,000
$2,134 $2,150 $2,195 $2,195

$2,045 $2,090 $2,095

$1,950

$1,500

$1,000

$500

$0

Note: Bar graph rent shown for Verona Gardens represents average current rent. Rent shown for Comparable Proper es represents their average asking rent using their larger 1 bedroom floorplan in determining average rent.

471 Acalanes Drive
Sunnyvale, California

The informa on coWnteainheTadhvheeerienninofohraresmabeaseonnognivteocnodtonoutusabbinytetihtdesohawecncreeurironaf tchhyea,spbrboupeteerwtnyeogrdiovotehennrostotougrucuesasbrwayendtteheeemeorietw.liaAnbellelr.iWnofefohtrahmveeanpororoenapseosnrhttoyoudolodrubobtteihtsveaerccrsuiorfiauecyrd,cbpeutsrwioweredtoodneopteugmuracrhraenaltsieaeebitol.erA.lsl ianlfeor.ma on should be verified prior to purchase or sale. 2266

RENT COMPARABLES 2 Bedroom x 1 Bath

$3,500 Average Asking Rent of Comparables: $2,686
Verona Gardens Est. Market Rent: $2,545

Verona Gardens Current Average Rent: $2,490

$3,440

$3,000

$2,725 $2,753

$2,450 $2,490 $2,523

$2,500 $2,225
$2,000

$1,500

$1,000

$500

$0 FourPalms VeronaGardens PalmVilla OliveGardens OliveWest ReserveatMV
Woodacre

Note: Bar graph rent shown for Verona Gardens represents average current rent. Rent shown for Comparable Proper es represents their average asking rent.

471 Acalanes Drive
Sunnyvale, California

The informa on coWnteainheTadhvheeerienninofohraresmabeaseonnognivteocnodtonoutusabbinytetihtdesohawecncreeurironaf tchhyea,spbrboupeteerwtnyeogrdiovotehennrostotougrucuesasbrwayendtteheeemeorietw.liaAnbellelr.iWnofefohtrahmveeanpororoenapseosnrhttoyoudolodrubobtteihtsveaerccrsuiorfiauecyrd,cbpeutsrwioweredtoodneopteugmuracrhraenaltsieaeebitol.erA.lsl ianlfeor.ma on should be verified prior to purchase or sale. 2277

RENT COMPARABLES

4
85

9

3

12 26 1
7 11

SUBJECT PROPERTY
Verona Gardens

10
13

471 Acalanes Drive
Sunnyvale, California

The informa on coWnteainheTadhvheeerienninofohraresmabeaseonnognivteocnodtonoutusabbinytetihtdesohawecncreeurironaf tchhyea,spbrboupeteerwtnyeogrdiovotehennrostotougrucuesasbrwayendtteheeemeorietw.liaAnbellelr.iWnofefohtrahmveeanpororoenapseosnrhttoyoudolodrubobtteihtsveaerccrsuiorfiauecyrd,cbpeutsrwioweredtoodneopteugmuracrhraenaltsieaeebitol.erA.lsl ianlfeor.ma on should be verified prior to purchase or sale. 2288

COMPARABLES SALES Sale Price Price/Unit Price/SF GIM Cap Rate COE Unit/Bd/Ba

Property $7,047,000 $440,438 $537 17.76 3.28% 8/30/16 7 - 1x1
8 - 2x1
Four Palms Apartments 1 - 3x2
1277-1283 Ayala Drive
Sunnyvale
# of Units: 16
Year Built: 1964

Property Sale Price Price/Unit Price/SF GIM Cap Rate COE Unit/Bd/Ba

The Bungalows at Mathilda $22,500,000 $330,882 $606 15.77 3.80% 6/30/16 68 - 1x1
126 West Ahwanee Ave
Sunnyvale
# of Units: 68
Year Built: 1964

Note: In determining Cap Rate, 40% of Gross Scheduled Income was assumed for Opera ng Expenses and Vacancy, actual may vary.

Property Sale Price Price/Unit Price/SF GIM Cap Rate COE Unit/Bd/Ba

Los Altos Court $33,000,000 $589,286 $747 25.50 2.35% 6/14/16 8 - Studio x 1
848-854 Jordan Avenue 36 - 1x1
Los Altos 12 - 2x1
# of Units: 56
Year Built: 1962

Note: Studio unit u lites are ed to House Meters. 3 Parcels (14, 28 & 14 units). Price was $32,750,000 and Buyer paid $250,000 commission in addi on to this price. In
determining Cap Rate, 40% of Gross Scheduled Income was assumed for Opera ng Expenses and Vacancy and $15/unit/month Laundry Income was assumed, actual may
vary.

Property Sale Price Price/Unit Price/SF GIM Cap Rate COE Unit/Bd/Ba

Montebello $9,300,000 $387,500 $514 18.50 2.99% 5/5/16 2 - Studio x 1
914 Mountain View Ave 16 - 1x1
Mountain View 8 - 2x1
# of Units: 24
Year Built: 1960

Property Sale Price Price/Unit Price/SF GIM Cap Rate COE Unit/Bd/Ba

Maude Garden $14,800,000 $352,381 $617 15.85 4.13% 4/19/16 1 - Studio x 1
524 E Maude Avenue 40 - 1x1
Sunnyvale 1 - 2x2
# of Units: 42
Year Built: 1958

GIM = Gross Income Mul plier 471 Acalanes Drive
Sunnyvale, California

The informa on coWnteainheTadhvheeerienninofohraresmabeaseonnognivteocnodtonoutusabbinytetihtdesohawecncreeurironaf tchhyea,spbrboupeteerwtnyeogrdiovotehennrostotougrucuesasbrwayendtteheeemeorietw.liaAnbellelr.iWnofefohtrahmveeanpororoenapseosnrhttoyoudolodrubobtteihtsveaerccrsuiorfiauecyrd,cbpeutsrwioweredtoodneopteugmuracrhraenaltsieaeebitol.erA.lsl ianlfeor.ma on should be verified prior to purchase or sale. 2299

COMPARABLES SALES

Property Sale Price Price/Unit Price/SF GIM Cap Rate COE Unit/Bd/Ba

Parallel Apartments $22,275,000 $348,047 $608 16.42 3.77% 4/14/16 56 - Jr. 1x1
1105-1157 W Olive Ave 8 - 1x1
Sunnyvale
# of Units: 64
Year Built: 1964

Note: Formerly Castlemont Garden Apartments.

Property Sale Price Price/Unit Price/SF GIM Cap Rate COE Unit/Bd/Ba

Sunset Apartments $12,800,000 $312,195 $692 17.45 3.44% 24 - Studio x 1
616 Morse Avenue 12/10/15 16 - 1x1
Sunnyvale
# of Units: 41 1 - 2x1
Year Built: 1959

Note: Assumed $15/unit/month laundry income. In determining Cap Rate, 40% of Gross Scheduled Income was assumed for Opera ng Expenses and Vacancy. Actual may vary.

Property Sale Price Price/Unit Price/SF GIM Cap Rate COE Unit/Bd/Ba

Ancala at Montecito $23,400,000 $450,000 $727 18.77 3.20% 11/20/15 46 - 1x1
2044-2056 Montecito Avenue 6 - 2x2
Mountain View
# of Units: 52
Year Built: 1963/64

Note: Property consists on 2 adjacent 26-unit proper es. Cap Rate assumed $15 unit/month laundry income and 40% of Gross Scheduled Income for Opera ng Expenses and
Vacancy. Actual may vary.

Property Sale Price Price/Unit Price/SF GIM Cap Rate COE Unit/Bd/Ba

1228 Balboa Court $7,750,000 $430,556 $467 18.55 3.43% 7/31/15 10 - 1x1
Sunnyvale 3 - 2x1
# of Units: 18 5 - 2x2
Year Built: 1964

Property Sale Price Price/Unit Price/SF GIM Cap Rate COE Unit/Bd/Ba

333 N. Rengstorff Ave $19,000,000 $593,750 $467 27.00 1.75% 7/2/15 16 - 2 x 1 ⁄ TH
Mountain View 16 - 3 x 2 ⁄ TH
# of Units: 32
Year Built: 1965

GIM = Gross Income Mul plier 471 Acalanes Drive
Sunnyvale, California

The informa on coWnteainheTadhvheeerienninofohraresmabeaseonnognivteocnodtonoutusabbinytetihtdesohawecncreeurironaf tchhyea,spbrboupeteerwtnyeogrdiovotehennrostotougrucuesasbrwayendtteheeemeorietw.liaAnbellelr.iWnofefohtrahmveeanpororoenapseosnrhttoyoudolodrubobtteihtsveaerccrsuiorfiauecyrd,cbpeutsrwioweredtoodneopteugmuracrhraenaltsieaeebitol.erA.lsl ianlfeor.ma on should be verified prior to purchase or sale. 3300

LOCATION OVERVIEW MAJOR EMPLOYERS IN SUNNYVALE(8)

SAN FRANCISCO BAY AREA(1)(2) Lockheed Mar n Space Systems 5,045 local employees
The San Francisco Bay Area consists of nine coun es, 101 ci es and comprises over
7,000 square miles. With six different sub-regions, it houses 7.44 million residents, Apple Inc 4,000 local employees
making it the fi h most populous metropolitan area in the United States. It is home to
many of the world’s most dis nguished and innova ve Fortune 500 businesses, such Yahoo! Inc (HQ) 3,993 local employees
as Salesforce, Ne lix, and Cisco.(3) The workforce is comprised of highly educated indi-
viduals, with over 4,111,536(4) people in the labor force. The San Francisco Bay Area’s Juniper Networks Inc (HQ) 3,180 local employees
diverse region appeals visitors through its iconic a rac ons, such as the Golden Gate
Bridge and Fisherman’s Wharf, and other highlights ranging from amusement parks Google 3,176 local employees
and museums to beaches and wine countries. In 2014, San Francisco a racted over
18.01 million visitors, increasing the number of jobs supported by tourism by 13.2 per- NetApp Inc (HQ) 3,081 local employees
cent.(5) Residents of the San Francisco Bay Area can enjoy its great weather, beau ful
scenery, and diversity. LinkedIn 1,840 local employees

SANTA CLARA COUNTY(6) A2Z Development Center Inc 1,834 local employees
Santa Clara County, most commonly known as the “Silicon Valley”, is home to nearly
1.8 million people, making it the largest of nine Bay Area coun es. It is considered as Northrup Grumman Marine System 1,198 local employees
one of the best areas to live and work, and houses many of the na on’s most success-
ful businesses. The County has one of the highest standards of living in the country West Valley Engineering 1,056 local employees
and is a major employment center for the region, providing 25% of all jobs in the Bay
Area. Residents of Santa Clara County are culturally and ethnically diverse and speak DEMOGRAPHICS(9)(10) Citywide 5-mile Radius of Property
over 100 different languages and dialects. Residents of the County can spend their free 148,372 373,531
Residen al Popula on: 2.7 2.67
me visi ng the Tech Museum of Innova on, the Rosicrucian Museum, the Children’s Average Household Size: 35.6 -
Discovery Museum, and many more museums and art galleries in the area or watching Median Age:
sports games and concerts at the SAP Center and Levi’s Stadium. Residents can drive Median Household $103,257 108,322.48
a short hour to visit beaches along the Pacific Ocean in Santa Cruz, Half Moon Bay, Income:
Monterey, and Carmel. Santa Clara County is home to three major universi es: Stan- Unemployment rate: 3.9% -
ford University, Santa Clara University, and San Jose State University, as well as many Size: 24 square miles 111.72 square miles
dis nguished community colleges.

CITY OF SUNNYVALE(7)
Located in the Heart of Silicon Valley, Sunnyvale is recognized for its beau ful, clean
suburban se ng and 17 parks. It is the second largest city in Santa Clara County and
the fi h largest in the San Francisco Bay Area. Sunnyvale is home to many of the na-

on’s most successful businesses and is a short drive to dis nguished educa onal in-
s tu ons including Stanford University, San Jose State University, and Santa Clara Uni-
versity. Residents of this city can enjoy its high-quality city services, 26 quality schools,
low crime rate, and plen ful restaurants.

See Location Overview Sources and Disclaimers at the end of this Offering Memorandum.

471 Acalanes Drive
Sunnyvale, California

The informa on coWnteainheTadhvheeerienninofohraresmabeaseonnognivteocnodtonoutusabbinytetihtdesohawecncreeurironaf tchhyea,spbrboupeteerwtnyeogrdiovotehennrostotougrucuesasbrwayendtteheeemeorietw.liaAnbellelr.iWnofefohtrahmveeanpororoenapseosnrhttoyoudolodrubobtteihtsveaerccrsuiorfiauecyrd,cbpeutsrwioweredtoodneopteugmuracrhraenaltsieaeebitol.erA.lsl ianlfeor.ma on should be verified prior to purchase or sale. 3311

FOOTNOTES & DISCLAIMERS

OFFERING SUMMARY FOOTNOTES AND DISCLAIMERS UNIT MIX/SCHEDULED INCOME OVERVIEW FOOTNOTES AND DISCLAIMERS

Gross Annual Scheduled Income (Current) & the Gross Income Mul plier (Current) are Current Rent Column is based on current rents shown in the Rent Roll. These rent levels
based on the current rents shown in the Rent Roll including actual 2016 Other Income of are subject to change without no ce. Buyer should review most recent Rent Roll prior to
$21,933. These rent and Other Income levels are subject to change without no ce. Buyer purchase. Rent amounts were rounded to the nearest dollar. Pet rent was not included in
should review most recent Rent Roll and Opera ng Statement prior to purchase. these amounts. Rent for any units that were vacant at the me this Offering Memorandum
was prepared are assumed to be at the es mated Market Rent level.
Gross Annual Scheduled Income (Market) & Gross Income Mul plier (Market) assumes
the units are all rented at the “Es mated Market Rent” levels shown in the Rent Roll and Es mated Market Rents assumes the units are all rented at the “Es mated Market Rent”
includes actual 2016 Other Income of $21,933. Please note that current rents are not all at levels shown in the Rent Roll. Please note that current rents are not all at these levels.
these levels. These rent levels are not guaranteed to be achievable or sustainable by Seller, These rent levels are not guaranteed to be achievable or sustainable by Seller, Broker or
Broker or Agent and Buyer should use rent levels it thinks it can obtain for the subject Agent and Buyer should use rent levels it thinks it can obtain for the subject property.
property.
PROPERTY OVERVIEW FOOTNOTES AND DISCLAIMERS
Capitaliza on Rate (Current) is based on income, expenses and vacancy figures shown in
the ProForma Opera ng Statement, Current column. See Proforma Opera ng Statement Informa on in this sec on of the Offering Memorandum were provided to us by the
Footnotes and Disclaimers in this sec on of the Offering Memorandum. owner or sources we deem reliable but is not guaranteed to be accurate by Broker, Agent
or Seller. Buyer should NOT rely on the accuracy of this informa on and should verify its
Capitaliza on Rate (Market) is based on income, expenses and vacancy figures shown in accuracy and verify features and improvements referenced in this sec on of the Offering
the ProForma Opera ng Statement ProForma (Market) column. See Proforma Opera ng Memorandum, prior to Buyer removing con ngencies and purchasing this property.
Statement Footnotes and Disclaimers in this sec on of the Offering Memorandum.
Schools were ascertained from the School District websites, and may be subject to change.
Zoning: This was provided by the City of Sunnyvale and is not guaranteed as accurate by API Scores were those reported for 2013 on the California Department of Educa on
Seller, Broker or Agent. Buyer should confirm zoning prior to purchase and rely on its own website.
inves ga on.
There was a significant amount of renova ons and improvements completed at the
Year Built & Lot Size: Data source is LandVision. Seller, Broker and Agent are making no property in the ±2013-2015 meframe. The list of improvements and renova ons shown
guarantee or representa ons as to when the improvements were built or the size of the lot. should be verified by Buyer prior to purchase. Seller, Brokers and Agents are not warran ng
Buyer should conduct its own inves ga on to determine the age of the improvements and or represen ng the accuracy or completeness of the list. There may be some variance to
the size of the lot. the type and extent of the improvements and renova ons completed to the interiors of the
apartments and to the exterior of the property than what is listed in the Property Overview.

471 Acalanes Drive
Sunnyvale, California

The informa on coWnteainheTadhvheeerienninofohraresmabeaseonnognivteocnodtonoutusabbinytetihtdesohawecncreeurironaf tchhyea,spbrboupeteerwtnyeogrdiovotehennrostotougrucuesasbrwayendtteheeemeorietw.liaAnbellelr.iWnofefohtrahmveeanpororoenapseosnrhttoyoudolodrubobtteihtsveaerccrsuiorfiauecyrd,cbpeutsrwioweredtoodneopteugmuracrhraenaltsieaeebitol.erA.lsl ianlfeor.ma on should be verified prior to purchase or sale. 3322

FOOTNOTES & DISCLAIMERS

PROFORMA OPERATING STATEMENT FOOTNOTES & DISCLAIMERS LOCATION OVERVIEW SOURCES & DISCLAIMERS

(1) Based on the current rents at the me this Offering Memorandum was prepared. (1) h ps://en.wikipedia.org/wiki/San_Francisco_Bay_Area
Es mated Market Rent was assumed for any vacant units. These rent levels are subject (2) h p://www.bayareavision.org/bayarea/
to change without no ce. (3) h p://fortune.com/2015/06/15/states-most-fortune-500-companies/
(4) h p://www.marineconomicconsul ng.com/EmplReports/Regions/Bay_Area.pdf
(2) Based on actual amount from the 2016 Opera ng Statement provided by the owner. (5) h p://www.sanfrancisco.travel/ar cle/record-breaking-economic-impact-2014
(6) h ps://www.sccgov.org/sites/scc/pages/about-the-county.aspx
(3) Es mated at 4% of Gross Scheduled Rent, actual amount may vary. (7) h p://sunnyvale.ca.gov/AboutSunnyvale.aspx
(8) h p://sunnyvale.ca.gov/Portals/0/Sunnyvale/FIN/2016-City-Comprehensive-Annual-
(4) Based on list price of $18,950,000, using actual 2016/17 tax rate of 1.1595%.
Financial-Report-(CAFR).pdf
(5) Based on 2016/17 Special Assessments of $949.50 rounded to the nearest dollar. (9) h p://sunnyvale.ca.gov/Portals/0/Sunnyvale/OCM/ED-GeneralFiles/Community-De

(6) Based on $250/unit/year mographics-July16.pdf
(10) LandVision
(7) Based on Es mated Market Rent levels
GENERAL DISCLAIMERS
(8) Property Management fee was based on 4% of Effec ve Gross Income, plus 4% of the
$36,383.58 Calendar Year 2016 U lity Bill Back income. Actual management fees paid in Note: Building square footage, square footage of improvements, unit square footage and
2016 was $69,018. Owner is currently paying its 3rd party management company a lot size are NOT guaranteed as accurate. Broker and Agent have not measured all units, lot,
3.25% management fee. building or improvements and are making NO representa on as to the accuracy of square
footage figures. Data source for lot size is Landvision. Buyer should measure all units,
Note: Figures were rounded to the nearest dollar. Calendar Year 2016 Capital Improvement lot, improvements and the building prior to purchase and should not rely on any square
expenditures of approximately $15,007 and ownership Headquarters overhead Expenses of footage figures provided to them by Broker, Agent or Seller.
approximately $29,319 were not included in the Proforma Opera ng Statement.
When analyzing this property. Buyer should use income, vacancy and expense levels that
RENT ROLL FOOTNOTES AND DISCLAIMERS will accurately reflect the manner in which it plans to operate the property. Broker, Agent
and Seller are making no representa ons or warran es as to the level of income or
General Notes: Rent levels, occupancy, deposit amounts, date of last increase and terms expenses Buyer will incur at the property.
are subject to change without no ce. Move-In dates and lease terms are subject to change
as units turnover and leases are renewed. Buyer should obtain updated informa on and Photographs in this Offering Memorandum were taken in the 2015-2017 meframe.
confirm all rent levels, lease terms, move-in dates, amount of last rental adjustment and
deposit amounts prior to purchase.

Current Rent column is based on the current rent at the me this Offering Memorandum
was prepared and is subject to change without no ce. Es mated Market Rent was assumed
for any units that were vacant at the me this Offering Memorandum was prepared.

Est. Market Rent column does not necessarily reflect the current rent levels. These
es mated market rent levels are not guaranteed to be achievable or sustainable by Seller,
Broker or Agent. Buyer should use rent levels it thinks it can obtain for the subject property.

Note: There is no Apartment #13.

471 Acalanes Drive
Sunnyvale, California

The informa on coWnteainheTadhvheeerienninofohraresmabeaseonnognivteocnodtonoutusabbinytetihtdesohawecncreeurironaf tchhyea,spbrboupeteerwtnyeogrdiovotehennrostotougrucuesasbrwayendtteheeemeorietw.liaAnbellelr.iWnofefohtrahmveeanpororoenapseosnrhttoyoudolodrubobtteihtsveaerccrsuiorfiauecyrd,cbpeutsrwioweredtoodneopteugmuracrhraenaltsieaeebitol.erA.lsl ianlfeor.ma on should be verified prior to purchase or sale. 333