The Jackson OM

a Berkshire Hathaway and Jefferies Financial Group company

INVESTMENT ADVISORS TYLER SINKS 858.257.4706 Tyler.Sinks@berkadia.com CA BRE License #01910220 ED ROSEN 858.257.4715 Ed.Rosen@Berkadia.com CA BRE License #01010225

FINANCING CHAD WILLIAMS 858.260.3010 Chad.Williams@berkadia.com

SAN DIEGO OFFICE 4275 Executive Square | Suite 900 La Jolla, California 92037 P. 858.683.7930 | F. 858.683.7931 www.Berkadia.com

2

THE JACKSON

TABLE OF CONTENTS THE OPPORTUNITY.......................................................... 04 THE ASSET. . .......................................................................... 18 AMENITIES........................................................................... 28 UNDERWRITING................................................................ 32 COMPARABLE RENTAL PROPERTIES. . ..................... 40 COMPARABLE SALE PROPERTIES. . ........................... 54 THE LOCATION................................................................... 60

BERKADIA

3

THE OPPORTUNITY

EXECUTIVE SUMMARY

6

THE JACKSON

Berkadia is pleased to present the exclusive opportunity to acquire an urban community located in the vibrant North Park neighborhood, just north of Downtown San Diego. The Jackson is a one-of-a-kind asset comprised of 31 new apartment units, 5 refurbished cottages, and 5,450 SF of attractive commercial retail space.

Completed in 2019, The Jackson consists of state-of-the-art construction and features topof-the-line condo quality interiors. The Property features unique, modern floor plans with large windows, private patios, and high-end finishes throughout.

The quality of life at The Jackson is unsurpassed, as North Park is one of San Diego’s trendiest neighborhoods and a major hotspot for nightlife with cafes, breweries, tasting rooms, restaurants, and boutique shops lining University Avenue.

Residents also enjoy easy access to some of San Diego’s major freeways such as Highway 163, I-5, and I-8.

With over 8.3 million SF of office space under construction or in planning in nearby Downtown (3 miles from the asset) and Mission Valley (2.5 miles from the asset) as well as the ongoing development of lifestyle amenities in the Balboa Park area, The Jackson is positioned to benefit from the projected long-term growth in the market for years to come.

BERKADIA

Offering Price $19,500,000 No. of Units

36 + 4 Commercial (5,446 SF)

Year Built

2019

7

98

WALK SCORE

35m

SQFT OFFICE SPACE WITHIN 5-20 MINUTES

60+

BARS & RESTAURANTS

340K

JOBS WITHIN 5-20 MINUTES

30

SPECIALTY RETAILERS

INVESTMENT HIGHLIGHTS

PRIME WALKABLE LOCATION The Jackson is located in the thriving community of North Park, San Diego. From the art lover to the music enthusiast, fashionista to the foodie, North Park truly offers a wholly authentic experience for everyone.

With a Walk Score of 98, residents are an easy walk to over 60 lively bars and restaurants, 30 specialty boutiques and retailers, and a wide array of entertainment venues. Locals can also enjoy a variety of North Park festivities including the Farmer’s Market, Taste of North Park, and Festival of Arts.

98

WALK SCORE

10

60+

BARS & RESTAURANTS

30

SPECIALTY RETAILERS

THE JACKSON

340K EMPLOYEES

35m

SQFT OFFICE SPACE

PHENOMENAL ACCESS TO JOBS The Jackson has excellent proximity to four major employment centers – Downtown San Diego, Mission Valley, Kearny Mesa, and UTC. Collectively, these job centers employ over 340,000 people in more than 35 million square feet of office space. The Jackson’s ideal location near the I-805 gives residents the distinct advantage of being central to the full diversity of San Diego’s dynamic employment base. Residents working in these bustling regions are just a short 5- to 20- minute drive away from their employer, and with an evenly dispersed percentage of residents making these short commutes, it is clear that this centrality and connectivity combined with an unrivaled North Park culture provides residents with the best live-work lifestyle.

BERKADIA

11

INVESTMENT HIGHLIGHTS

5,450

TOTAL COMMERCIAL SF

29,963 TOTAL RENTABLE SF

BRAND-NEW CONSTRUCTION Completed in 2019 this condominium-quality community was constructed with the utmost consideration for the resident’s comfort and convenience. The Property consists of four commercial units measuring 5,450 square feet and 36 apartment homes measuring 666 square feet each with rich interior luxuries including: brand-new energy efficient stainless-steel appliances, floor-to-ceiling windows for natural lighting, quartz countertops, custom wood cabinetry, modern backsplashes, a combination of polished concrete and vinylplank flooring, and private balconies that create an indoor-outdoor living space.

12

THE JACKSON

THRIVING NORTH PARK NEIGHBORHOOD North Park’s lineup of small-business retail and boutiques are just as eclectic, unique and diverse as the neighborhood itself. Within walking distance, one can find a trendy vintage clothing shop, an art gallery and a lively microbrewery. Residents can explore the wide variety of authentic shops, each with their own flavor while still retaining the cool North Park vibe.

BERKADIA

13

LACK OF MODERN SUPPLY The greater North Park’s considerably higher bodies per unit (BPU) indicates a severe lack of modern supply. To demonstrate how deeply undersupplied the neighborhood is, refer to the analysis below where we compare North Park to both a major employment center (Downtown San Diego) and to a less urban, lower density submarket (Mission Valley).

DOWNTOWN SAN DIEGO

MISSION VALLEY

NORTH PARK

Bodies

47,310

48,573

41,538

Class “A” Units

5,249

2,171

174

9

22

239

Bodies per Unit

14

THE JACKSON

POSITIONED FOR EXCEPTIONAL RENT GROWTH The undersupplied nature of the greater North Park submarket will be prominent for the foreseeable future. As of today, there are no future development deals in the pipeline in the greater North Park Area. With extreme lack of new housing being added to the supply in North Park, The Jackson is not subjected to neighboring competition, thus benefiting from an increase in rent growth.

Average annual rent growth of 5.5% since 2014 8.0% Projected average annual rent growth of 4% over the next 5 years

7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 0.0% -1.0%

2014

2015

2016

Downtown BERKADIA

2017

2018

2019

North Park

2020

2021

2022

2023

2024

Mission Valley 15

THE JACKSON IS IN A PRIME WALKABLE LOCATION IN THE HEART OF THE NORTH PARK NEIGHBORHOOD.

16

THE JACKSON

BERKADIA

17

THE ASSET

20

THE JACKSON

BERKADIA

21

PROPERTY SUMMARY ADDRESS

4126-4144 30th Street San Diego, CA 92104

NUMBER OF UNITS

36 + 4 Commercial (5,450 SF)

AVERAGE RESIDENTIAL UNIT SF 666 SF TOTAL RENTABLE SF

29,963

YEAR BUILT

2019

SITE SIZE

21,000 SF

NUMBER OF BUILDINGS

Three

NUMBER OF STORIES

Five

PARCEL NUMBER

446-303-16

ELEVATOR

One

EXTERIOR

Stucco, Wood, Metal

ROOF

TPO Membrane, Clay Tile Roof

PARKING

Covered Garage

PARKING SPACES

18 Assigned Spaces 12 Tandem, 2 Handicap, 3 Commercial 35 Total Spaces

STORAGE UNITS

7 Units ($65-$115 per month)

22

THE JACKSON

UNIT MIX AND SPECIFICS UNIT/TYPE

UNITS

AVG SF

% OF TOTAL

Studio

4

455

11%

Studio (Remodeled Cottage)

1

306

3%

1 Bed / 1 Bath

19

632

53%

1 Bed / 1 Bath*

2

662

5%

1 Bed / 1 Bath (Remodeled) Cottage)

2

607

5%

1 Bed / 1 Bath (Remodeled Cottage*)

1

592

3%

2 Bed / 2 Bath

6

972

17%

2 Bed / 1 Bath (Remodeled Cottage)

1

863

3%

Total / Average

36

666

100%

*Affordable

MECHANICAL / ELECTRICAL / PLUMBING Heating

Individual for Each Unit

Air conditioning Individual for Each Unit Water Heater

Two Boilers with Booster Pump

Fire Protection

Alarms & Fire Sprinklers in New Units

UTILITIES

PROVIDER

Electricity

SDG&E

Gas

SDG&E

Water / Sewer

City of San Diego

Trash Removal

Waste Management

Internet / Telephone

AT&T and COX Available

UNIT SPECIFICATIONS Refrigerator

Whirlpool

Stove / Oven

Whirlpool

Microwave

Whirlpool

Dishwasher

Whirlpool

Washer / Dryer

GE

Disposal

Yes

Kitchen Countertop Materials

Quartz

Bathroom Countertop Materials

Quartz

Cabinets (Kitchen)

Wood

Cabinets (Bathroom)

Wood

Light Fixtures

Recessed Can, Surface Mount

Flooring Materials

Vinyl Plank, Tile, Concrete

BERKADIA

23

RETAIL TENANTS JUNESHINE – “THE WORLD’S FIRST HARD KOMBUCHA BAR” JuneShine started brewing hard kombucha in June 2018 out of a garage in San Diego. Today, their organic 6.0% ABV kombucha has six flavors (Blood Orange Mint, Honey Ginger Lemon, Midnight Painkiller, Acai Berry, Rosé and the latest, Hopical Citrus) and sells in California, Oregon, Seattle, Austin, New York City, Hawaii and Chicago. The company operates a number of tasting rooms around the county and today continues to expand into new markets.

UPSTAIRS CIRCUS Upstairs Circus is a DIY workshop-meets-bar concept where people can gather together to create unique leather working, woodworking, jewelry making, art & design DIY projects while enjoying craft cocktails, beer & wine. Upstairs Circus currently has locations in Austin, Dallas, Denver, and Minneapolis.

DANDELION CAFÉ Dandelion Cafe specializes in health-conscious dining that includes items such as salads, bowls, wraps and other vegetarian and vegan f riendly food items (although some meats will be available). Beer and wine will also be served to accompany meals. Dine in and take out will be available.

TENANT

JUNESHINE

DANDELION

UPSTAIRS CIRCUS

Lease Start

6/1/20

6/1/20

1/1/20

SF

2,040

1,000

1,810

(1) 60-month option

(2) 60-month options

(1) 60-month option

5

10

5

Base Rent

$6,120

$3,100.00

$4,100.00

Annual Increase

3.00%

3.00%

3.00%

Pro Rata Share Expenses

35.35%

17.68%

28.26%

Pro Rata Share Property Tax

35.35%

17.68%

28.26%

Current Rent/SF

$3.00

$3.10

$2.27

Options Lease Term

*600 SF of vacant commercial space is available for rent.

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THE JACKSON

BERKADIA

25

FLOOR PLANS

1 BEDROOM 1 BATHROOM

STUDIO

26

THE JACKSON

2 BEDROOM 2 BATHROOM LOFT

BERKADIA

27

AMENITIES

INTERIOR LUXURIES • Fully-Equipped Kitchens with Stainless-Steel Appliances • In-Unit GE Washer / Dryer** • Floor-to-Ceiling Windows • Combination of Polished Concrete and Luxury Vinyl Plank Flooring • Tile Throughout Bathroom Areas • Central Air / Heat • Custom Showers with Tile Surrounds • Recessed Can Light Fixtures • Quartz Countertops and Backsplashes • Custom Wood Cabinetry • Large Balcony * • Indoor-Outdoor Living • Downtown and Mountain Views*

In select units **Seven units have shared access to washers/dryers *

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THE JACKSON

COMMUNITY AMENITIES • Interior Courtyard • Coworking Space with Community Tables, Individual Workspaces, and Lounge Chairs • DIY Workshop & Bar • Courtyard Barbecue • Elevator Access • Covered Parking • Pet Friendly Community • Gated Access • Proximity to Endless Retail, Eateries, and Entertainment • Easy Access to Public Transportation and Freeways

BERKADIA

31

UNDERWRITING

UNIT MIX AND RENT SCHEDULE UNITS

TYPE

UNIT SF

TOTAL SF

ACTUAL RENT

BERKADIA PRO FORMA (TRENDED 3%)

RENT/SF

4

Studio

455

1,820

$1,881

$1,938

$4.26

19

1 Bed / 1 Bath

632

12,013

$2,290

$2,359

$3.73

6

2 Bed / 2 Bath

972

5,832

$3,272

$3,371

$3.47

1

Studio (Remodeled Cottage)

306

306

$1,250

$1,288

$4.21

2

1 Bed / 1 Bath (Remodeled Cottage)

607

1,213

$1,823

$1,877

$3.10

1

2 Bed / 1 Bath (Remodeled Cottage)

863

863

$2,350

$2,421

$2.80

2

1 Bed / 1 Bath (Affordable)

662

1,324

$1,044

$1,075

$1.62

1

1 Bed / 1 Bath (Affordable Remodeled Cottage)

592

592

$1,014

$1,044

$1.76

666

23,963

$2,250

$2,318

$3.48

36

34

THE JACKSON

PRO FORMA UNIT NUMBER

BERKADIA PRO FORMA

Scheduled Market Rent

$1,001,370

Less: Loss to Lease

1.00%

($10,014)

Less: Vacancy

5.00%

($50,069)

Less: Non-Revenue Units & Bad Debt

1.23%

Net Rental Income

($12,270) $929,018

Plus: Fee Income

$368

$13,235

Plus: RUBS Income

$627

$22,572

Plus: Other Income

$433

$15,600

Retail Income Plus: Retail Income

$191,333

Less: Retail Vacancy

5.00%

Plus: NNN

($9,567) $45,132

Total Operating Income (EGI)

$1,207,323

EXPENSES

PER UNIT

Administrative

BERKADIA PRO FORMA

$200

$7,200

Advertising & Promotion

$150

$5,400

Payroll

$426

$15,338

Repairs & Maintenance/Turnover

$550

$19,800

$1,174

$42,256

$1,000

$36,000

$425

$15,300

$6,663

$239,850

$12

$414

$300

$10,800

Management Fee

3.50%

Utilities Contracted Services Real Estate Taxes Special Assessments Insurance Replacement Reserves Total Expenses

Net Operating Income

1.23%

$150

$5,400 $397,758

$809,565

IMPORTANT INFORMATION & DISCLAIMER: The information contained herein is assumed to be correct and market-supported. Output produced f rom this model should not be considered an appraisal.

Projections are forecasts and are not to be considered fact. The information contained in this f ile is privileged and conf idential; it is intended only for use by Berkadia® and their clients. This f ile may not be reproduced physically or in electronic format without the expressed written consent of Berkadia. CAUTION: Security codes have been included into this f ile and unauthorized use may render this f ile useless.

Berkadia® employees, aff iliates, and contractors are instructed to hard-code this model for reproduction and distribution. Not responsible for errors and omissions. © 2020 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. 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; Vincent B. Norris, CA BRE Lic. #00843890. 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 visit: http://www.berkadia.com/legal/licensing.aspx All Rights Reserved. DRAFT REPORT: Privileged & Conf idential, For Discussion Purposes Only.

NOTES TO PRO FORMA Below is a pro forma operating statement reflecting Berkadia’s projections for the first year of buyers’ operations. Projected pro forma expenses are based on Berkadia’s knowledge of operations at similar properties in the submarket. Detailed footnotes explaining our assumptions can be found on the following pages.

INCOME Scheduled Market Rents – The table below displays The Jackson’s current actual rents on an untrended and trended (3%) basis. The 3% trending reflects market rents at the property once fully-stabilized, and forms the basis for Berkadia’s pro forma.

UNITS

TYPE

UNIT SF

ACTUAL RENT

BERKADIA PRO FORMA (TRENDED 3%)

RENT/SF

4 19 6 2 1 2 1 1 36

Studio 1 Bed / 1 Bath 2 Bed / 2 Bath Studio (Remodeled Cottage) 1 Bed / 1 Bath (Remodeled Cottage) 2 Bed / 1 Bath (Remodeled Cottage) 1 Bed / 1 Bath (Affordable) 1 Bed / 1 Bath (Affordable Remodeled Cottage)

455 632 972 662 306 607 592 863 666

$1,881 $2,290 $3,272 $1,250 $1,823 $2,350 $1,044 $1,014 $2,250

$1,938 $2,359 $3,371 $1,288 $1,877 $2,421 $1,075 $1,044 $2,318

$4.26 $3.73 $3.47 $4.21 $3.10 $2.80 $1.62 $1.76 $3.48

Loss to Lease - The pro forma assumes loss-to-lease equivalent to 1% of gross potential rents.

Vacancy – The pro forma assumes 5% Vacancy, which is in-line with conventional underwriting standards.

Non-Revenue Units & Bad Debt – Non-Revenue Units & Bad Debt are estimated at 1.23% of Scheduled Market Rents and includes one manager unit receiving half off market rent of $1,022.50 per month in f ree rent.

Fee Income – Fee Income includes the following assumptions: FEE

AMOUNT

NOTES

Application Fees

$1,485

55% turnover x $50 application fee x 1.5 app/unit.

Damage/Forfeited Deposits

$3,960

Total apartment homes x 55% turnover x $200 forfeited deposit.

Termination Fees

$5,000

2 lease terminations x 1 month’s rent.

NSF /Late Fees

$90

Miscellaneous Income

$2,700

TOTAL

$13,235

5% of apartments x $50 late fee. $75 per unit annually.

RUBS Income - The pro forma assumes RUBS collections of $55 per month per unit @ 95% occupancy.

Other Income – Other Income includes the following assumptions: LINE ITEM

AMOUNT

NOTES

Storage

$7,200

7 units at 100% occupancy leased for an average of $85.71/month.

Pet Rent

$8,400

40% of the units x $50/month.

TOTAL

$15,600

Retail Income - Pro forma assumes all 4 commercial spaces are leased at the time of sale and trended by 3% per the commercial leases. Please consult the online website for more detail.

UNIT

SF

CURRENT MONTHLY RENT

NNN/MO.

Juneshine

2,040

$6,120

$1,249

Dandelion

1,000

$3,100

$1,408

Upstairs Circus

1,810

$4,100

$690

Vacant

600

$2,160

$414

TOTAL

5,450

$15,480

$3,761

Retail Vacancy – The pro forma assumes a 5% vacancy factor on Retail Income.

NNN – Pro forma NNN is based on Owner’s estimated budget. See Retail Income table for more detail.

EXPENSES Administrative – The pro forma assumes an administrative expense of $200 per unit, which is in-line with comparable properties in the market.

Advertising & Promotion – The pro forma assumes an Advertising & Promotion expense of $150 per unit, which is in-line with comparable properties in the market.

Payroll – The pro forma assumes the following Payroll expenses: LINE ITEM

AMOUNT

NOTES

Payroll

$12,270

Onsite manager paid $1,022.50 per month

Burden

$3,068

25% burden.

TOTAL

$15,338

Repairs & Maintenance/Turnover - The pro forma assumes a Repairs & Maintenance/Turnover expense of $550 per unit, which is in-line with comparable properties in the market.

Management Fee - The pro forma assumes a Management Fee of 3.5% of Total Operating Income.

Utilities - The pro forma assumes a utilities expense of $1,000 per unit, which is in-line with comparable properties in the market.

Contracted Services - The pro forma assumes a Contracted Services expense of $425 per unit and includes contracts for landscaping, janitorial, and pest.

Real Estate Taxes – Real Estate Taxes are calculated by applying 1.23% to the listing price. We recommend consulting a tax professional regarding this line item.

Special Assessments – Special Assessments are based on a review of the 2019/2020 property tax bill.

Insurance - The pro forma assumes an insurance expense of $300 per unit, in-line with comparable properties of this size and vintage.

Replacement Reserves - The pro forma assumes Replacement Reserves are set at $150 per unit based on conventional underwriting standards.

INDICATIVE LOAN QUOTES PROGRAM

TERM (YRS)

AMORT TREASURY/ I/O (YRS) (YRS) LIBOR

SPREAD TOTAL

DCR

LOAN AMOUNT

Agency Fixed

7

30

1-3

1.62%

2.10%

3.72%

1.25

$11,622,000

Agency Fixed

10

30

3-5

1.71%

2.05%

3.76%

1.25

$11,560,000

Agency Fixed Term I/O

10

30

10

1.71%

2.00%

3.71%

1.35

$10,770,000

Agency Floating

7

30

1-3

1.66%

2.25%

3.91%

1.22

$11,622,000

Life Company Low Leverage

10

30

5-10

1.71%

1.75%

3.46%

1.44

$10,450,000

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THE JACKSON

BERKADIA

39

COMPARABLE RENTAL PROPERTIES

COMPARABLE RENT COMPS SUMMARY UNITS

BUILT

OCCUPANCY

AVG SF

MARKET AVG RENT

AVG RENT / SF

36

2019

95%

666

$2,250

$3.38

0.9 Mile

165

2019

25% (In initial lease up.*)

761

$3,211

$4.22

San Diego

2.7 Miles

102

2015

91%

922

$3,176

$3.44

VIDA North Park

San Diego

0.6 Mile

115

2018

95%

813

$2,989

$3.68

4

Park & Polk

San Diego

1.4 Miles

54

2018

94%

876

$2,960

$3.38

5

Mr. Robinson

San Diego

1.4 Miles

34

2016

91%

1,080

$2,861

$2.65

890

$3,095

$3.47

PROPERTY

CITY

S

The Jackson

San Diego

1

BLVD North Park

San Diego

2

Broadstone Balboa Park

3

DISTANCE

Averages *Averages do not include Subject Property

S

42

1

2

4

5

3

THE JACKSON

RENT COMPS MAP

8

805

15 163

KENSINGTON

8 NORMAL HEIGHTS Adams Ave.

8

UNIVERSITY HEIGHTS

163

805

1 PASEO DE MISSION HILLS

El Cajon Blvd.

3

4 163

Texas St.

2

Park Blvd.

5

HILLCREST

University Ave.

15

NORTH PARK 805

163

30th St.

BALBOA PARK

BANKERS HILL 163

15 5

BERKADIA

805

43

COMPARABLE RENT COMPS THE JACKSON 4126-4144 30th Street San Diego CA 92104

S

Units:

36

Built:

2019

Occupancy:

95%

Concessions: Offering one month free.

RUBS: Resident pays water, sewer, trash, and electric based on usage.

Notes:

Pet Policy: $250 deposit and $50 per month for dog, $25 per month for cat.

Parking Policy: Tandem parking for two bedrooms. Remaining spaces are assigned.

Qualifications: 2.5 times the rent.

Lease Terms: 12 months.

Washers / Dryers: Yes, included in all units. Seven units have shared access to washers / dryers. The rest of the units have in-unit washers / dryers.

UNITS

TYPE

UNIT SF

MARKET RENT

RENT / SF

5

0/1

425

$1,755

$4.13

21

1/1

630

$2,245

$3.56

Studio

3

1/1

639

$1,004

$1.57

2 Bed / 1 Bath

1

2/1

863

$2,350

$2.72

6

2/2

972

$3,272

$3.37

666

$2,259

$3.39

36

44

16%

14%

1 Bed / 1 Bath 2 Bed / 2 Bath

67%

THE JACKSON

BLVD NORTH PARK 2020 El Cajon Boulevard San Diego CA 92104

1

Distance:

0.9 Mile

Units:

165

Built:

2019

Occupancy:

25% (In initial lease up.*)

Concessions: None RUBS: Resident pays water, sewer, trash, and electric based on usage.

Notes:

Pet Policy: $400 deposit and $50 per month.

Parking Policy: One space per unit is included in the rent.

Qualifications: 2.5 times the rent.

Lease Terms: 6-14 months.

Washers / Dryers: Yes, included in all units.

UNITS

TYPE

UNIT SF

MARKET RENT

RENT / SF

1

0/1

506

$1,950

$3.85

151

1/1

739

$3,200

$4.33

Studio

9

2/2

1,003

$3,400

$3.39

1 Bed / 1 Bath

4

2/2.5

1,115

$3,525

$3.16

2 Bed / 2.5 Bath

761

$3,211

$4.22

165

BERKADIA

5%

2 Bed / 2 Bath

92%

45

COMPARABLE RENT COMPS BROADSTONE BALBOA PARK 3288 5th Avenue San Diego CA 92103

2

Distance:

2.7 Miles

Units:

102

Built:

2015

Occupancy:

91%

Concessions:

One month free and one free parking space.

Notes:

RUBS: Resident pays water, sewer, trash, electric and gas based on usage.

Pet Policy: $500 deposit and $50 per month.

Parking Policy: Tandem parking for two bedrooms. One parking space for one bedrooms.

Qualifications: 3 times the rent.

Lease Terms: 9-16 months.

Washers / Dryers: Yes, included in all units.

UNITS

TYPE

UNIT SF

MARKET RENT

RENT / SF

25

0/1

743

$2,280

$3.07

50

2/1

867

$3,595

$4.15

27

2/2

1,190

$3,230

$2.71

2 Bed / 1 Bath

922

$3,176

$3.44

2 Bed / 2 Bath

102

25%

26%

Studio

49%

46

THE JACKSON

VIDA NORTH PARK 4223 Texas St San Diego CA 92104

3

Distance:

0.6 Mile

Units:

115

Built:

2018

Occupancy:

95%

Concessions:

Up to six weeks free on select units.

Notes:

RUBS: Resident pays water, sewer, trash, gas and electric based on usage.

Pet Policy: $500 deposit and $50 per month.

Parking Policy: One space is included in the rent per unit. $75 per month for a second space.

Qualifications: 3 times the rent.

Lease Terms: 3-16 months.

Washers / Dryers: Yes, included in all units.

UNITS

TYPE

UNIT SF

MARKET RENT

RENT / SF

59

0/1

578

$2,320

$4.01

14

1/1

766

$3,150

$4.11

42

2/2

1,158

$3,875

$3.35

813

$2,989

$3.68

115

37%

Studio 51%

1 Bed / 1 Bath 2 Bed / 2 Bath

12%

BERKADIA

47

COMPARABLE RENT COMPS PARK & POLK 4075 Park Boulevard San Diego CA 92103

4

Distance:

1.4 Miles

Units:

54

Built:

2018

Occupancy:

94%

Concessions: None.

Notes:

RUBS: Resident pays water, sewer, gas, and electric. Owner pays trash.

Pet Policy: $500 deposit and $25 per month.

Parking: Two spaces for most units.

Qualifications: 2.5 times the rent.

Washers / Dryers: Yes, included in all units.

UNITS

TYPE

UNIT SF

MARKET RENT

RENT / SF

6

0/1

465

$2,075

$4.46

6

1/1

710

$3,173

$4.47

42

2/2

959

$3,056

$3.19

876

$2,960

$3.38

54

11% 11% Studio 1 Bed / 1 Bath 2 Bed / 2 Bath 78%

48

THE JACKSON

MR. ROBINSON 3752 Park Boulevard San Diego CA 92103

5

Distance:

1.4 Miles

Units:

34

Built:

2016

Occupancy:

91%

Concessions: None RUBS: Resident pays water, sewer, gas, and electric. Owner pays trash.

Notes:

Pet Policy: $500 deposit and $25 per month.

Parking Policy: Included in the rent. Some units get a single space or tandem.

Qualifications: 2.5 times the rent.

Lease Terms: 12 month leases.

Washers / Dryers: Yes, included in all units.

UNITS

TYPE

UNIT SF

MARKET RENT

RENT / SF

5

0/1

801

$2,373

$2.96

26

2/2

1,147

$3,151

$2.75

3

3/1

959

$1,158

$1.21

1,080

$2,861

$2.65

34

9%

15%

Studio 2 Bed / 2 Bath 3 Bed / 1 Bath

76%

BERKADIA

49

COMPARABLE RENT ANALYSIS

The Jackson

$1,755

BLVD North Park

$1,950 | 0.9 miles

Park & Polk

$2,075 | 1.4 miles

Broadstone Balboa Park

$2,280 | 2.7 miles

VIDA North Park

$2,320 | 0.6 miles

Mr. Robinson

$2,373 | 1.4 miles

00

0

$2

,5

,0 0

00 $1 ,5

00 $1 ,0

$2

Average $2,200

50

$5

$0

00

STUDIO

THE JACKSON

$2,137

VIDA North Park

$3,150 | 0.6 miles

Park & Polk

$3,173 | 1.4 miles

BLVD North Park

$3,200 | 0.9 miles

0 50 $3 ,

0 $3 ,0 0

00 ,5 $2

0 ,0 0 $2

00 $1 ,5

00 $1 ,0

00

The Jackson

Average $2,915

BERKADIA

$5

$0

1 BEDROOM

51

COMPARABLE RENT ANALYSIS

$3,056 | 1.4 miles

The Jackson

$3,147

Mr. Robinson

$3,151 | 1.4 miles

BLVD North Park

$3,438 | 0.9 miles

Broadstone Balboa Park

$3,467 | 2.7 miles

VIDA North Park

$3,875 | 0.6 miles

00 ,5 $4

0 ,0 0 $4

$3 ,

50

0

0 $3 ,0 0

00 ,5 $2

0 ,0 0 $2

00 $1 ,5

00 $1 ,0

00

Park & Polk

Average $3,397

52

$5

$0

2 BEDROOM

THE JACKSON

BERKADIA

53

COMPARABLE SALE PROPERTIES

COMPARABLE SALES COMPS 1

THE JACKSON

2

KENSINGTON COMMONS

4126-4144 30TH STREET SAN DIEGO, CA 92104

4142 ADAMS AVENUE SAN DIEGO, CA 92116

STRUCTURE LOFTS 440 UPAS STREET SAN DIEGO, CA 92103

BUILT:

2019

BUILT:

2014

BUILT:

2014

UNITS:

36

UNITS:

34

UNITS:

25

AVG SF:

666

PRICE / UNIT:

$666,176

PRICE / UNIT:

$590,000

PRICE / SF:

$484

PRICE / SF:

$338

AVG SF:

1,083

AVG SF:

1,033

SOLD FOR:

$22,650,000

SOLD FOR:

$14,750,000

CLOSED:

2/11/19

CLOSED:

2/8/17

UNIT MIX

UNIT MIX

UNIT MIX

STUDIO

24%

1 BED

70%

1 BED

50%

2 BED

30%

2 BED

26%

3

4

CHARLEE LOFTS

100%

5

VIDA NORTH PARK

4045 30TH STREET SAN DIEGO, CA 92104

STUDIO

4223 TEXAS STREET SAN DIEGO, CA 92104

EXOTIC GARDENS 4319 MISSISSIPPI STREET SAN DIEGO, CA 92104

BUILT:

2017

BUILT:

2018

BUILT:

2017

UNITS:

10

UNITS:

118

UNITS:

21

PRICE / UNIT:

$570,000

PRICE / UNIT:

$521,610

PRICE / UNIT:

$509,524

PRICE / SF:

$424

PRICE / SF:

$334

PRICE / SF:

$353

AVG SF:

850

AVG SF:

871

AVG SF:

723

SOLD FOR:

$5,700,000

SOLD FOR:

$61,550,000

SOLD FOR:

$10,700,000

CLOSED:

2/8/19

CLOSED:

2/22/18

UNIT MIX 2 BED

UNIT MIX 100%

UNIT MIX 16%

1 BED

77%

1 BED

50%

2 BED

23%

2 BED

34%

STUDIO

SALES COMPS MAP

8

805

15 163

KENSINGTON

8 NORMAL HEIGHTS

1

Adams Ave.

UNIVERSITY HEIGHTS

163

805

5 El Cajon Blvd.

4

PASEO DE MISSION HILLS

163

2

Texas St.

Park Blvd.

HILLCREST

3

University Ave.

15

NORTH PARK 805

163

30th St.

BALBOA PARK

BANKERS HILL 163

15 5

BERKADIA

805

57

$509,524 | 0.9 miles

Vida North Park

$521,610 | 0.6 miles

Charlee Lofts

$570,000 | 0.1 miles

Structure Lofts

$590,000 | 2.6 miles

Kensington Commons

$666,176 | 2.1 miles

0 $7 00 ,0 0

0 00 ,0 0 $6

$5

00 ,0 0

0

0 $4 00 ,0 0

0 $3 00 ,0 0

0 $2 00 ,0 0

Exotic Gardens

Average $571,462

58

$1 00 ,0 0

$0

0

ANALYSIS | PPU

THE JACKSON

$410.00 | 0.6 miles

Structure Lofts

$453.00 | 2.6 miles

Kensington Commons

$483.87 | 2.1 miles

Charlee Lofts

$552.00 | 0.1 miles

Exotic Gardens

$704.00 | 0.9 miles

00 .0 0 $8

$7 00 .0 0

00 .0 0 $6

00 .0 0 $5

$4 00 .0 0

$3 00 .0 0

$2 00 .0 0

Vida North Park

Average $521

BERKADIA

$1 00 .0 0

$0

ANALYSIS | PPSF

59

THE LOCATION

NORTH PARK North Park is one of San Diego’s trendiest neighborhoods and a major hotspot for nightlife with cafes, breweries, tasting rooms, restaurants, and boutique shops lining University Avenue.

“

NO. 7 AMONG

THE BEST NEIGHBORHOODS

FOR YOUNG PROFESSIONALS IN SAN DIEGO Niche

“

”

14 COOLEST

HIPSTER NEIGHBORHOODS

IN THE USA TripAdvisor

62

”

THE JACKSON

NORTH PARK MAIN STREET From world-class restaurants and renowned breweries to unique boutiques and the iconic Observatory North Park Theatre, North Park Main Street is bustling with excitement at every corner.

North Park at a glance:

40+ restaurants 15+ bars, breweries and cafes and tasting rooms

BERKADIA

50+ shops and boutiques

5 art galleries

63

OBSERVATORY NORTH PARK THEATRE Originally opened in 1929, historic Observatory North Park has been transformed into San Diego’s newest concert / music / nightlife venue.

1,100 seating capacity

64

32,000 square feet

200 performances in 2018

THE JACKSON

BALBOA PARK Adjacent to North Park is the largest urban cultural park in North America.

Balboa Park is home to the worldfamous San Diego Zoo and was named one of 15 Great Places in America.

1,200 acres

15+ museums and cultural institutions

19 gardens

$356.4m annual economic impact

3,700 animals in 4m annual visitors the San Diego Zoo in 2018 (record) BERKADIA

65

INVESTMENT ADVISORS TYLER SINKS 858.257.4706 Tyler.Sinks@berkadia.com CA BRE License #01910220 ED ROSEN 858.257.4715 Ed.Rosen@Berkadia.com CA BRE License #01010225

FINANCING CHAD WILLIAMS 858.260.3010 Chad.Williams@berkadia.com

SAN DIEGO OFFICE 4275 Executive Square | Suite 900 La Jolla, California 92037 P. 858.683.7930 | F. 858.683.7931 www.Berkadia.com

DISCLAIMER 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. © 2019 Berkadia Real Estate Advisors Inc. 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. In California, Berkadia Real Estate Advisors Inc. conducts business under CA Real Estate Broker License #01931050; Vincent B. Norris, CA BRE Lic. # 843890. 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 visit: http://www.berkadia.com/legal/licensing.aspx

BERKADIA

67

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