Mar at Chavez BOV

BROKER OPINION OF VALUE 150 Units | Built 1987 144 W. Calle Primera San Ysidro, CA 92173

INVESTMENT ADVISORS BRANDON GRISHAM

Senior Managing Director 253.653.3313 brandon.grisham@berkadia.com

RACHEL PARSONS

Senior Managing Director 949.242.4082 rachel.parsons@berkadia.com

JORDAN SKYLES

Director 208.631.4981 jordan.skyles@berkadia.com

JEFF IRISH

Senior Managing Director 208.286.5013 jeff.irish@berkadia.com

MIKE TERRY

Director 425.761.1640 mike.terry@berkadia.com

ADAM TOMBERG

Director 425.999.1152 adam.tomberg@berkadia.com

BOISE OFFICE 6225 North Meeker Place Suite 210 Boise, ID 83713

IRVINE OFFICE 3333 Michelson Drive Suite 620 Irvine CA 92612 www.Berkadia.com

FINANCIAL ANALYSIS

3

BOV

PRICE PER UNIT

PROFORMA NOI

PROFORMA

$31,500,000

$210,000

$1,845,708

5.86%

CAP R ATE

UNIT MIX

SET-ASIDE

NUMBER OF UNITS

UNIT SIZE (RSF)

AVERAGE RENT

PROFORMA INCREASE

PROFORMA RENT

MAX RENT

PROJECTED UA

MAX NET RENT

1 BD 1 BTH - Unrenovated

80%

28

650

$1,399

$604

$2,003

$2,068

$65

$2,003

1 BD 1 BTH - Partially Renovated

80%

1

650

$1,737

$266

$2,003

$2,068

$65

$2,003

1 BD 1 BTH - Renovated

80%

7

650

$1,699

$304

$2,003

$2,068

$65

$2,003

36

23,400

$52,791

$19,317

$72,108

$74,448

$72,108

650

$1,466

$537

$2,003

$2,068

$2,003

UNIT TYPE

1 BD UNIT TOTAL 1 BD UNIT AVG 2 BD 1 BTH - Unrenovated

80%

48

716

$1,643

$756

$2,399

$2,482

$83

$2,399

2 BD 1 BTH - Partially Renovated

80%

3

716

$2,090

$309

$2,399

$2,482

$83

$2,399

2 BD 1 BTH - Renovated

80%

5

716

$2,322

$77

$2,399

$2,482

$83

$2,399

2 BD 2 BTH - Unrenovated

80%

28

763

$1,654

$745

$2,399

$2,482

$83

$2,399

2 BD 2 BTH - Renovated

80%

2

763

$2,292

$107

$2,399

$2,482

$83

$2,399

86

62,986

$147,635

$58,679

$206,314

$213,452

$206,314

732

$1,717

$682

$2,399

$2,482

$2,399

2 BD UNIT TOTAL 2 BD UNIT AVG 3 BD 2 BTH - Unrenovated

80%

22

850

$2,022

$743

$2,765

$2,867

$102

$2,765

3 BD 2 BTH - Partially Renovated

80%

2

850

$2,555

$211

$2,765

$2,867

$102

$2,765

3 BD 2 BTH - Renovated

80%

4

850

$2,684

$81

$2,765

$2,867

$102

$2,765

28

23,800

$60,324

$17,096

$77,420

$80,276

$77,420

850

$2,154

$611

$2,765

$2,867

$2,765

110,186

$260,750

$95,092

$355,842

$368,176

$355,842

735

$1,738

$2,372

$2,455

$2,372

3 BD UNIT TOTAL 3 BD UNIT AVG

TOTAL AVERAGE

150

*The unit mix above was based on the 11/7/23 rent roll and estimated Utility Allowances calculated on the Housing Authority of the County of San Diego worksheet effective 12/1/2022. Average Rent above reflects the average of in-place rents for each floorplan for units without subsidy vouchers.

As of the 11/7/23 rent roll, there are 9 units that are occupied by a tenant with a subsidy voucher accounting for 2.87% of total rental revenue.

4

RENT & INCOME LIMITS

Area Median Income: $116,800

San Diego County Effective Year: 2023

Unit Breakdown by Unit Type

19%

PROPERTY INCOME LIMITS

24%

57%

1 BD

2 BD

3 BD

Average Rents to Max Net Rents $3,000

$2,154

$2,003

$2,000

$1,717 $1,466

$1,000 $500 $0 1 BD

2 BD Average Rent

5

INCOME

80%

1 Person

$77,200

2 Person

$88,240

3 Person

$99,280

4 Person

$110,240

5 Person

$119,120

6 Person

$127,920

7 Person

$136,720

MAXIMUM ALLOWABLE RENTS Set Aside

Unit Type

# of Units

Max Rent

UA

Max Net Rent

80%

1 BD

36

$2,068

$65

$2,003

80%

2 BD

86

$2,482

$83

$2,399

80%

3 BD

28

$2,867

$102

$2,765

$2,765 $2,399

$2,500

$1,500

Mar at Chavez will be required to hold the maximum rent charged at or below a level considered appropriate for the households that have incomes at or below 80% of the local Area Median Income (AMI) for the county.

Net Max Rent

3 BD

HISTORICAL RENT & INCOME LIMITS SAN DIEGO COUNTY | CALIFORNIA AMI GROWTH

2 BD 80% RENT GROWTH $2,700

$121,000 $116,000 $111,000 $106,000

5 Yr Avg

7.44%

$2,500

5 Yr Avg

7.23%

10 Yr Avg

4.99%

$2,300

10 Yr Avg

5.31%

$101,000

$2,100

$96,000

$1,900

$91,000

$1,700

$86,000

$1,500

$81,000

$1,300

$76,000 $71,000

$1,100

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2023

2024

FMR GROWTH 1, 2, & 3 BD UNITS $3,000 $2,800

5 Yr Avg

6.29%

$2,600

10 Yr Avg

7.57%

$2,400 $2,200 $2,000 $1,800 $1,600 $1,400 2014

6

2015

2016

2017

2018

2019

2020

2021

2022

FINANCIAL SUMMARY

Name Address City, State, Zip County Market Segment

PROPERTY INFORMATION

Mar at Chavez 144 W. Calle Primera San Ysidro, CA 92173 San Diego Family

Year Built QCT/DDA Designated Opportunity Zone

1987 Yes No

Total Number of Units Net Rentable Square Feet

150 110,186 SF

FINANCIAL SUMMARY PRICING FIGURES - WITH PROPOSED NEW FINANCING BROKER'S OPINION OF VALUE Price per Unit Price per SF PROFORMA 10-Year Leveraged Cash IRR%* Closing Cost Capital Expense Total Acquisition Cost

Low $29,500,000 $196,667 $267.73

High $31,500,000 $210,000 $285.88

22.00%

19.56%

$150,000 $2,175,000 $31,825,000

$150,000 $2,175,000 $33,825,000

*IRR Analysis assumes $150,000 in Closing Costs, $14,500 per unit in Capital Expense, 7.00% exit cap, with a 3.00% cost of sale.

7

IMPORTANT INFORMATION & DISCLAIMER: The information contained herein is assumed to be correct and market-supported. Output produced from this model should not be considered an appraisal. Projections are forecasts and are not to be considered fact. The information contained in this file is privileged and confidential; it is intended only for use by Berkadia® and their clients. This file may not be reproduced physically or in electronic format without the express written consent of Berkadia. Not responsible for errors and omissions.

FINANCIAL SUMMARY FINANCING PROPOSED NEW FINANCING

Low Agency 75.00% 6.00% 36 30 1.24

High Agency 72.63% 6.00% 36 30 1.20

Total Acquisition Cost Total Loan Amount Loan Fee @ 1.00% Down Payment

$31,825,000 $22,125,000 $221,250 $9,921,250

$33,825,000 $22,880,000 $228,800 $11,173,800

Annual Debt Service - I/O Annual Debt Service - P&I

$1,327,500 $1,591,807

$1,372,800 $1,646,126

Date of Evaluation 10-Year Treasury Note as of Date of Evaluation

12/5/2023 4.21%

12/5/2023 4.21%

Program Loan to Value % Interest Rate Interest Only Period (Months) Amortization Period (Years) Debt Coverage Ratio

8

VITAL DATA YE 2022 CAP Rate NOI Year 1 Debt Service Net Cash Flow After Debt Service Cash on Cash %

Low 4.81% $1,417,772 $1,327,500 $90,272 0.91%

High 4.50% $1,417,772 $1,372,800 $44,972 0.40%

Trailing-12 (October '23) CAP Rate NOI Year 1 Debt Service Net Cash Flow After Debt Service Cash on Cash %

Low 5.54% $1,634,230 $1,327,500 $306,730 3.09%

High 5.19% $1,634,230 $1,372,800 $261,430 2.34%

T-3 Revenue /T-12 Expenses CAP Rate NOI Year 1 Debt Service Net Cash Flow After Debt Service Cash on Cash %

Low 6.10% $1,799,486 $1,327,500 $471,986 4.76%

High 5.71% $1,799,486 $1,372,800 $426,686 3.82%

T-3 Revenue / Underwritten Exp CAP Rate NOI Year 1 Debt Service Net Cash Flow After Debt Service Cash on Cash %

Low 5.96% $1,759,287 $1,327,500 $431,787 4.35%

High 5.59% $1,759,287 $1,372,800 $386,487 3.46%

PROFORMA CAP Rate NOI Year 1 Debt Service Net Cash Flow After Debt Service Cash on Cash %

Low 6.26% $1,845,708 $1,327,500 $518,208 5.22%

High 5.86% $1,845,708 $1,372,800 $472,908 4.23%

IN T E R E S T R AT E S E N S I T I V I T Y INTEREST RATE SENSITIVITY

9

Interest Rate

6.00%

6.10%

6.20%

6.30%

6.40%

6.50%

6.60%

6.70%

6.80%

6.90%

7.00%

Loan Amount

$22,880,000

$22,636,643

$22,397,359

$22,162,020

$21,930,548

$21,702,866

$21,478,898

$21,258,571

$21,041,812

$20,828,553

$20,618,723

Proforma NOI Year 1 Debt Service Lev. Cash Flow DCR

$1,845,708 $1,372,800 $472,908 1.34

$1,845,708 $1,380,835 $464,873 1.34

$1,845,708 $1,388,636 $457,071 1.33

$1,845,708 $1,396,207 $449,500 1.32

$1,845,708 $1,403,555 $442,153 1.32

$1,845,708 $1,410,686 $435,021 1.31

$1,845,708 $1,417,607 $428,100 1.30

$1,845,708 $1,424,324 $421,384 1.30

$1,845,708 $1,430,843 $414,865 1.29

$1,845,708 $1,437,170 $408,538 1.28

$1,845,708 $1,443,311 $402,397 1.28

Sale Price Acquisition Basis Equity Required Proforma Cash on Cash Proforma Cap Rate

$31,500,000 $36,607,600 $11,173,800 4.23% 5.86%

$31,066,788 $36,174,388 $10,983,945 4.23% 5.94%

$30,643,182 $35,750,782 $10,799,623 4.23% 6.02%

$30,228,956 $35,336,556 $10,620,736 4.23% 6.11%

$29,823,871 $34,931,471 $10,447,123 4.23% 6.19%

$29,427,694 $34,535,294 $10,278,628 4.23% 6.27%

$29,040,198 $34,147,798 $10,115,100 4.23% 6.36%

$28,661,163 $33,768,763 $9,956,392 4.23% 6.44%

$28,290,375 $33,397,975 $9,802,362 4.23% 6.52%

$27,927,624 $33,035,224 $9,652,871 4.23% 6.61%

$27,572,708 $32,680,308 $9,507,786 4.23% 6.69%

Estimated Change in Value

$0

($435,000)

($855,000)

($1,270,000)

($1,675,000)

($2,070,000)

($2,460,000)

($2,840,000)

($3,210,000)

($3,570,000)

($3,925,000)

INCOME & EXPENSES

Trailing-12 (October '23)

YE 2022

PER UNIT

(8.42%)

$2,992,302 ($251,871) $2,740,431

$19,949 ($1,679) $18,270

(19.41%)

1.32% 3.04% 0.00% 4.37%

($36,254) ($83,440) $0 ($119,694)

($242) ($556) $0 ($798)

1.74% 0.15% 0.00% 1.89%

$2,620,737

Other Income Late Fees Application Fees Lease Termination Fees Damage & Cleaning Fees Misc. Other Income Total Other Income EFFECTIVE GROSS INCOME

OPERATIONAL ANALYSIS

T-3 Revenue / T-12 Expenses

PER UNIT

T-3 Revenue / Underwritten Exp

PER UNIT

PER UNIT

PROFORMA

PER UNIT

$4,270,104 ($854,021) $3,416,083 10.99%

$28,467 ($5,693) $22,774 (1)

($170,804) ($17,080) $0 ($187,885)

($1,139) (2) ($114) $0 ($1,253)

INCOME Gross Potential Rent Gain (Loss) to Lease POTENTIAL RENTAL INCOME % Increase over Prior Year Economic Loss Vacancy Loss Bad Debt Concessions Total Economic Loss NET RENTAL INCOME

$3,598,325 ($698,556) $2,899,769 5.81%

$23,989 ($4,657) $19,332

(23.19%)

$4,007,040 ($929,280) $3,077,760 6.14%

$26,714 ($6,195) $20,518

(23.19%)

($50,566) ($4,246) $0 ($54,812)

($337) ($28) $0 ($365)

2.05% 0.15% 0.00% 2.19%

$17,472

$2,844,957

$6,000 $1,807 $0 $640 $18,276 $26,723

$40 $12 $0 $4 $122 $178

$2,647,460

$17,650

$4,007,040 ($929,280) $3,077,760 0.00%

$26,714 ($6,195) $20,518

(20.00%)

($63,040) ($4,507) $0 ($67,547)

($420) ($30) $0 ($450)

2.05% 0.15% 0.00% 2.19%

($63,040) ($4,507) $0 ($67,547)

($420) ($30) $0 ($450)

5.00% 0.50% 0.00% 5.50%

$18,966

$3,010,213

$20,068

$3,010,213

$20,068

$3,228,199

$21,521

$15,825 $3,192 $1,628 $969 $1,572 $23,186

$106 $21 $11 $6 $10 $155

$15,825 $3,192 $1,628 $969 $1,572 $23,186

$106 $21 $11 $6 $10 $155

$15,825 $3,192 $1,628 $969 $1,572 $23,186

$106 $21 $11 $6 $10 $155

$15,825 $3,192 $1,628 $969 $1,572 $23,186

$106 $21 $11 $6 $10 $155

$2,868,143

$19,121

$3,033,400

$20,223

$3,033,400

$20,223

$3,251,385

$21,676

EXPENSES FIXED OPERATIONAL EXPENSE Real Estate Property Taxes Property Insurance Expense Property Utility Expense TOTAL FIXED OPERATIONAL EXP

16.34% 3.19% 4.44% 23.97%

$432,648 $84,414 $117,526 $634,589

$2,884 $563 $784 $4,231

14.79% 3.64% 2.17% 20.61%

$424,337 $104,342 $62,310 $590,989

$2,829 $696 $415 $3,940

14.79% 3.64% 2.17% 20.61%

$424,337 $104,342 $62,310 $590,989

$2,829 $696 $415 $3,940

12.53% 3.96% 2.05% 18.54%

$380,041 $120,000 $62,310 $562,350

$2,534 $800 $415 $3,749

11.69% 3.69% 5.80% 21.17%

$380,041 $120,000 $188,424 $688,465

$2,534 $800 $1,256 $4,590

VARIABLE OPERATIONAL EXPENSE Maint. Contract Services Repairs & Maintenance Administrative Expenses Leasing & Marketing Payroll and Salary Expenses Property Management Fee Non-Profit Fee TOTAL VARIABLE OPERATIONAL EXP

3.66% 5.58% 1.66% 1.01% 6.49% 2.39% 0.00% 20.78%

$96,787 $147,769 $43,904 $26,745 $171,701 $63,194 $0 $550,099

$645 $985 $293 $178 $1,145 $421 $0 $3,667

2.35% 4.32% 0.13% 0.96% 10.65% 2.43% 0.00% 20.85%

$67,481 $123,934 $3,685 $27,504 $305,504 $69,816 $0 $597,924

$450 $826 $25 $183 $2,037 $465 $0 $3,986

2.35% 4.32% 0.13% 0.96% 10.65% 2.43% 0.00% 20.85%

$67,481 $123,934 $3,685 $27,504 $305,504 $69,816 $0 $597,924

$450 $826 $25 $183 $2,037 $465 $0 $3,986

2.22% 4.09% 1.63% 0.91% 10.04% 2.50% 0.59% 21.98%

$67,481 $123,934 $49,320 $27,504 $304,688 $75,835 $18,000 $666,763

$450 $826 $329 $183 $2,031 $506 $120 $4,445

2.08% 3.81% 1.52% 0.85% 9.37% 2.50% 0.55% 20.67%

$67,481 $123,934 $49,320 $27,504 $304,688 $81,285 $18,000 $672,212

$450 $826 $329 $183 $2,031 $542 $120 $4,481

TOTAL FIXED & VARIABLE EXPENSES

44.75%

$1,184,688

$7,898

41.45%

$1,188,914

$7,926

41.45%

$1,188,914

$7,926

40.52%

$1,229,113

$8,194

41.85%

$1,360,677

$9,071

$45,000

$300

$45,000

$300

$45,000

$300

$45,000

$300

$45,000

$300

$1,229,688

$8,198

$1,233,914

$8,226

$1,233,914

$8,226

$1,274,113

$8,494

$1,405,677

$9,371

$1,417,772

$9,452

$1,634,230

$10,895

$1,799,486

$11,997

$1,759,287

$11,729

$1,845,708

$12,305

Reserves & Replacements TOTAL OPERATING EXPENSES

10

NET OPERATING INCOME

46.45%

43.02%

43.02%

42.00%

43.23%

(3) (4) (5)

(6) (7) (8)

NOTES TO INCOME & EXPENSES NOTES TO PROFORMA (1)

Potential Rental Income: Analysis reflects the Proforma rents as displayed on the Unit Mix Page, annualized. A 20% loss to lease is included as the higher rents are implemented and burned off by Year 4 of the analysis.

(2)

Vacancy: Based on the rent roll from 11/7/2023, physical occupancy is 99%. Analysis initially uses a 5.0% vacancy factor that is reduced to 4.0% in Year 4, where it remains for the rest of the analysis.

(3)

Real Estate Taxes: See notes below.

(4)

Insurance: Based on $800 per unit as an estimate of market underwriting.

(5)

Utilities: Per Client correspondence, a buyer will be required to phase out Water/Sewer rebilling as they bring units into compliance with a new regulatory agreement associated with the Welfare Exemption. Therefore, income from the property's Water/Sewer Rebill program is removed in the Proforma.

(6)

Administrative Expenses: Cable income of $45,635 in March 2023 has been removed from the analysis as it assumed to be non-recurring.

(7)

Payroll and Salary Expenses: Based on the Payroll Analysis below which assumes that costs are shared between the Mar at Cottonwood, Mar at Chavez, and Mar at Primera properties on a pro rata basis.

(8)

Non-Profit Fee: This analysis assumes a buyer includes the involvement of a non-profit organization to continue benefitting from the partial property tax exemption going forward. An annual estimated fee of $120 per unit is included in the analysis.

REAL ESTATE TAX ANALYSIS Parcel #: 666-150-26-00

Land Improvement Personal Property Total Market Value Exemptions Value after Exemptions Assessment Ratio Assessed Value

2022-2023 $14,000,000 $21,307,611 $58,277 $35,365,888 $0 $35,365,888 100.00% $35,365,888

2023-2024 $14,280,000 $21,733,763 $76,118 $36,089,881 $0 $36,089,881 100.00% $36,089,881

Proforma $14,420,000 $17,019,975 $60,025 $31,500,000

Tax Rate Ad Valorem Taxes Special Assessments Total Taxes Due

1.206% $426,343 $287 $426,629

1.206% $446,132 $302 $446,434

1.206% $379,739 $302 $380,041

Sale Price $31,500,000

Reassess To 100.00%

$31,500,000

100.00%

$31,500,000 100.00% $31,500,000

Notes It is assumed that the property will begin to benefit from the Welfare Property tax exemption under Property Tax Rule 140, subdivision (b) starting in Year 2 of the analysis. However, it is unknown how many units currently qualify for the exemption; the analysis assumes 50% of the units will be eligible for the Exemption in Year 2, and the remainder of the units will become eligible in Year 3.

The Proforma property tax expense is estimated by assuming a decrease in the market value to 100% of the High BOV Price and then applying the current millage rate. Furthermore, it will receive a 50% exemption in the Year 2 and a 100% exemption in Year 3, afterwards property taxes are estimated by assuming a 3.0% increase in special assessments.

PAYROLL ANALYSIS

11

Position Manager Admin Assistant Maintenance Super Maint. Assistant Misc.

Subtotal PR Tax/Benefits Total Portfolio Payroll Expense Pro Rate Share of Expenses Total Payroll

FTE 1 2 1 2 1 7

Rate $35.00 $28.50 $35.00 $28.50 $28.50 25.00%

7

Annual $72,800 $118,560 $72,800 $118,560 $59,280 $442,000 $110,500 $552,500 55% $304,688

CASH FLOW PROPERTY CASH FLOW ANALYSIS - ASSUMPTIONS CASH FLOW SUMMARY Gross Potential Rent Growth Loss to Lease Vacancy Bad Debt Concessions Other Income Growth Property Taxes Insurance Utilities Property Management Fee Other Expenses Replacement Reserves

12

1 Year 1

2 Year 2

3 Year 3

4 Year 4

5 Year 5

6 Year 6

7 Year 7

8 Year 8

9 Year 9

10 Year 10

NA -20.00% 5.00% 0.50% 0.00% NA NA NA NA 2.50% NA NA

2.50% -14.00% 5.00% 0.50% 0.00% 3.00% -48.50% 3.00% 3.00% 2.50% 3.00% 0.00%

2.50% -7.00% 5.00% 0.50% 0.00% 3.00% -99.84% 3.00% 3.00% 2.50% 3.00% 0.00%

2.50% 0.00% 4.00% 0.50% 0.00% 3.00% 3.00% 3.00% 3.00% 2.50% 3.00% 0.00%

2.50% 0.00% 4.00% 0.50% 0.00% 3.00% 3.00% 3.00% 3.00% 2.50% 3.00% 0.00%

2.50% 0.00% 4.00% 0.50% 0.00% 3.00% 3.00% 3.00% 3.00% 2.50% 3.00% 0.00%

2.50% 0.00% 4.00% 0.50% 0.00% 3.00% 3.00% 3.00% 3.00% 2.50% 3.00% 0.00%

2.50% 0.00% 4.00% 0.50% 0.00% 3.00% 3.00% 3.00% 3.00% 2.50% 3.00% 0.00%

2.50% 0.00% 4.00% 0.50% 0.00% 3.00% 3.00% 3.00% 3.00% 2.50% 3.00% 0.00%

2.50% 0.00% 4.00% 0.50% 0.00% 3.00% 3.00% 3.00% 3.00% 2.50% 3.00% 0.00%

CASH FLOW CASH FLOW SUMMARY

Year 1

Year 2

Year 3

Year 4

Year 5

Year 6

Year 7

Year 8

Year 9

INCOME Gross Potential Rent Gain (Loss) to Lease POTENTIAL RENTAL INCOME

$4,270,104 ($854,021) $3,416,083

$4,376,857 ($612,760) $3,764,097

$4,486,278 ($314,039) $4,172,239

$4,598,435 $0 $4,598,435

$4,713,396 $0 $4,713,396

$4,831,231 $0 $4,831,231

$4,952,012 $0 $4,952,012

$5,075,812 $0 $5,075,812

$5,202,707 $0 $5,202,707

$5,332,775 $0 $5,332,775

Economic Operational Loss Vacancy Loss Bad Debt Concessions Total Operational Loss

($170,804) ($17,080) $0 ($187,885)

($188,205) ($18,820) $0 ($207,025)

($208,612) ($20,861) $0 ($229,473)

($183,937) ($22,992) $0 ($206,930)

($188,536) ($23,567) $0 ($212,103)

($193,249) ($24,156) $0 ($217,405)

($198,080) ($24,760) $0 ($222,841)

($203,032) ($25,379) $0 ($228,412)

($208,108) ($26,014) $0 ($234,122)

($213,311) ($26,664) $0 ($239,975)

NET RENTAL INCOME

$3,228,199

$3,557,071

$3,942,765

$4,391,505

$4,501,293

$4,613,825

$4,729,171

$4,847,400

$4,968,585

$5,092,800

$23,186

$23,882

$24,598

$25,336

$26,096

$26,879

$27,686

$28,516

$29,372

$30,253

$3,251,385

$3,580,953

$3,967,364

$4,416,842

$4,527,389

$4,640,705

$4,756,857

$4,875,917

$4,997,957

$5,123,053

OPERATIONAL EXPENSES FIXED OPERATIONAL EXPENSE Real Estate Property Taxes Property Insurance Expense Property Utility Expense TOTAL FIXED OPERATIONAL EXP

$380,041 $120,000 $188,424 $688,465

$195,721 $123,600 $194,077 $513,398

$320 $127,308 $199,899 $327,528

$330 $131,127 $205,896 $337,353

$340 $135,061 $212,073 $347,474

$350 $139,113 $218,435 $357,898

$360 $143,286 $224,989 $368,635

$371 $147,585 $231,738 $379,694

$382 $152,012 $238,690 $391,085

$394 $156,573 $245,851 $402,818

VARIABLE OPERATIONAL EXPENSE Maint. Contract Services Repairs & Maintenance Administrative Expenses Leasing & Marketing Payroll and Salary Expenses Property Management Fee Non-Profit Fee

$67,481 $123,934 $49,320 $27,504 $304,688 $81,285 $18,000

$69,506 $127,652 $50,800 $28,329 $313,828 $89,524 $18,000

$71,591 $131,482 $52,324 $29,179 $323,243 $99,184 $18,000

$73,739 $135,426 $53,894 $30,055 $332,940 $110,421 $18,000

$75,951 $139,489 $55,510 $30,956 $342,928 $113,185 $18,000

$78,229 $143,674 $57,176 $31,885 $353,216 $116,018 $18,000

$80,576 $147,984 $58,891 $32,842 $363,813 $118,921 $18,000

$82,994 $152,423 $60,658 $33,827 $374,727 $121,898 $18,000

$85,483 $156,996 $62,477 $34,842 $385,969 $124,949 $18,000

$88,048 $161,706 $64,352 $35,887 $397,548 $128,076 $18,000

TOTAL VARIABLE OPERATIONAL EXP

$672,212

$697,639

$725,003

$754,474

$776,020

$798,198

$821,027

$844,527

$868,716

$893,617

TOTAL FIXED & VARIABLE EXPENSE

$1,360,677

$1,211,037

$1,052,531

$1,091,828

$1,123,494

$1,156,096

$1,189,662

$1,224,221

$1,259,802

$1,296,435

$45,000

$45,000

$45,000

$45,000

$45,000

$45,000

$45,000

$45,000

$45,000

$45,000

TOTAL OPERATING EXPENSES

$1,405,677

$1,256,037

$1,097,531

$1,136,828

$1,168,494

$1,201,096

$1,234,662

$1,269,221

$1,304,802

$1,341,435

PROPERTY NET OPERATING INCOME

$1,845,708

$2,324,916

$2,869,833

$3,280,014

$3,358,896

$3,439,609

$3,522,195

$3,606,696

$3,693,155

$3,781,618

1ST MTG DEBT SERVICE EXPENSES First Mortgage Interest First Mortgage Principal TOTAL 1ST MTG DEBT SERVICE

$1,372,800 $0 $1,372,800

$1,372,800 $0 $1,372,800

$1,372,800 $0 $1,372,800

$1,365,157 $280,969 $1,646,126

$1,347,827 $298,299 $1,646,126

$1,329,429 $316,697 $1,646,126

$1,309,896 $336,230 $1,646,126

$1,289,158 $356,968 $1,646,126

$1,267,141 $378,985 $1,646,126

$1,243,766 $402,360 $1,646,126

CASH FLOW AFTER DEBT SERVICE

$472,908

$952,116

$1,497,033

$1,633,888

$1,712,770

$1,793,483

$1,876,069

$1,960,570

$2,047,030

$2,135,492

DEBT SERVICE COVERAGE RATIO INDICATED CAPITALIZATION RATE CASH ON CASH RETURN

1.34 5.86% 4.23%

1.69 7.38% 8.52%

2.09 9.11% 13.40%

1.99 10.41% 14.62%

2.04 10.66% 15.33%

2.09 10.92% 16.05%

2.14 11.18% 16.79%

2.19 11.45% 17.55%

2.24 11.72% 18.32%

2.30 12.01% 19.11%

Total Other Income EFFECTIVE GROSS INCOME

Replacement Reserves

13

Year 10

INVESTMENT ADVISORS BRANDON GRISHAM

Senior Managing Director 253.653.3313 brandon.grisham@berkadia.com

JORDAN SKYLES

Director 208.631.4981 jordan.skyles@berkadia.com

JEFF IRISH

Senior Managing Director 208.286.5013 jeff.irish@berkadia.com

MIKE TERRY

Director 425.761.1640 mike.terry@berkadia.com

ADAM TOMBERG

Director 425.999.1152 adam.tomberg@berkadia.com

RACHEL PARSONS

BOISE OFFICE 6225 North Meeker Place Suite 210 Boise, ID 83713

IRVINE OFFICE

Senior Managing Director 949.242.4082 rachel.parsons@berkadia.com

3333 Michelson Drive Suite 620 Irvine CA 92612 www.Berkadia.com

DISCLAIMER & CONFIDENTIALITY The material contained in this document is confidential, furnished solely for the purpose of considering investment in the property described therein and is not to be copied and/ or used for any purpose or made available to any other person without the express written consent of Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. In accepting this, the recipient agrees to keep all material contained herein confidential.

This information package has been prepared to provide summary information to prospective purchasers and to establish a preliminary level of interest in the property described herein. It does not, however, purport to present all material information regarding the subject property, and it is not a substitute for a thorough due diligence investigation. In particular, Berkadia Real Estate Advisors LLC, Berkadia Real Estate Advisors Inc. and Seller have not made any investigation of the actual property, the tenants, the operating history, financial reports, leases, square footage, age or any other aspect of the property, including but not limited to any potential environmental problems that may exist and make no warranty or representation whatsoever concerning these issues. The information contained in this information package has been obtained from sources we believe to be reliable; however, Berkadia Real Estate Advisors LLC, Berkadia Real Estate Advisors Inc. and Seller have not conducted any investigation regarding these matters and make no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. Any pro formas, projections, opinions, assumptions or estimates used are for example only and do not necessarily represent the current or future performance of the property.

Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. and Seller strongly recommend that prospective purchasers conduct an in-depth investigation of every physical and financial aspect of the property to determine if the property meets their needs and expectations. We also recommend that prospective purchasers consult with their tax, financial and legal advisors on any matter that may affect their decision to purchase the property and the subsequent consequences of ownership.

All parties are advised that in any property the presence of certain kinds of molds, funguses, or other organisms may adversely affect the property and the health of some individuals. Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. recommend, if prospective buyers have questions or concerns regarding this issue, that prospective buyers conduct further inspections by a qualified professional.

The Seller retains the right to withdraw, modify or cancel this offer to sell at any time and without any notice or obligation. Any sale is subject to the sole and unrestricted approval of Seller, and Seller shall be under no obligation to any party until such time as Seller and any other necessary parties have executed a contract of sale containing terms and conditions acceptable to Seller and such obligations of Seller shall only be those in such contract of sale.

For more information on these and other Berkadia® exclusive listings, please visit our website at www.Berkadia.com Berkadia®, a joint venture of Berkshire Hathaway and Jefferies Financial Group, is an industry leading commercial real estate company providing comprehensive capital solutions and investment sales advisory and research services for multifamily and commercial properties. Berkadia® is amongst the largest, highest rated and most respected primary, master and special servicers in the industry. © 2023 Berkadia Proprietary Holding LLC Berkadia® is a trademark of Berkadia Proprietary Holding LLC Investment sales and real estate brokerage businesses are conducted exclusively by Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. Commercial mortgage loan origination and servicing businesses are conducted exclusively by Berkadia Commercial Mortgage LLC and Berkadia Commercial Mortgage Inc. Tax credit syndication business is conducted exclusively by the Tax Credit Syndication group. In California, Berkadia Real Estate Advisors Inc. conducts business under CA Real Estate Broker License #01931050; Adrienne Barr, CA DRE Lic. # 01308753. Berkadia Commercial Mortgage LLC conducts business under CA Finance Lender & Broker Lic. #988-0701; and Berkadia Commercial Mortgage Inc. under CA Real Estate Broker Lic. #01874116. This proposal is not intended to solicit commercial mortgage loan brokerage business in Nevada. For state licensing details, visit: http://www.berkadia.com/licensing.

BERKADIA.COM / 800.446.2226 a Berkshire Hathaway and Jefferies Financial Group company

© 2023 Berkadia Proprietary Holding LLC. Berkadia® is a trademark of Berkadia Proprietary Holding LLC. Investment sales and real estate brokerage businesses are conducted exclusively by Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. Commercial mortgage loan origination and servicing businesses are conducted exclusively by Berkadia Commercial Mortgage LLC and Berkadia Commercial Mortgage Inc. Tax credit syndication business is conducted exclusively by the Tax Credit Syndication group. This advertisement is not intended to solicit commercial mortgage loan brokerage business in Nevada. In California, Berkadia Real Estate Advisors Inc. conducts business under CA Real Estate Broker License #01931050; Adrienne Barr, CA DRE Lic. # 01308753. Berkadia Commercial Mortgage LLC conducts business under CA Finance Lender & Broker Lic. #988-0701; and Berkadia Commercial Mortgage Inc. under CA Real Estate Broker Lic. #01874116. For state licensing details for the above entities, visit: www.berkadia.com/licensing.