$20M Portfolio Model by twh1031

$20 million infill development portfolio

Contents

• Portfolio Summary

• Operator Overview

• Individual Property Overview

Legal Disclaimer

This information is for illustration and discussion purposes only. It is not intended to be, nor should it be construed or used as investment, tax, or financial advice, any recommendation, or an offer to sell, or a solicitation of any offer to buy, an interest in any security, including an interest in this company. Any offer or solicitation of an investment may be made only by confidential offering documents (collectively, the "Offering Documents") to accredited and/or sophisticated investors. Prospective investors should review carefully and rely solely on the Offering Documents in making any investment decision. Targeted returns discussed in this presentation are used for measurement or comparison purposes and only as a guideline for prospective investors, shareholders or other to evaluate this opportunity. Targeted returns should be evaluated over the time period indicated and not over shorter periods. No representation is made that the project will or is likely to achieve its objectives, that the business plan will be successful, or that an investor in the project, and its affiliates will or is likely to achieve results comparable to those shown or will make any profit or will not suffer losses or loss of principal. An investment in this project involves risks, as disclosed in any final offering docs.

THIS PRESENTATION INCLUDES OR MAY INCLUDE CERTAIN STATEMENTS, ESTIMATES, AND FORWARD-LOOKING PROJECTIONS WITH RESPECT TO THE ANTICIPATED FUTURE PERFORMANCE OF THE COMPANY. SUCH STATEMENTS, ESTIMATES, AND FORWARD-LOOKING PROJECTIONS REFLECT VARIOUS ASSUMPTIONS OF THE MANAGER THAT MAY OR MAY NOT PROVE TO BE CORRECT OR THAT MAY INVOLVE VARIOUS UNCERTAINTIES. NO REPRESENTATION IS MADE, AND NO ASSURANCE CAN BE GIVEN, THAT THE COMPANY CAN OR WILL ATTAIN THE MANAGER'S PROJECTED RESULTS. ACTUAL RESULTS MAY VARY, PERHAPS MATERIALLY, FROM SUCH PROJECTIONS.

Any statements made in this presentation are not guarantees of future performance and undue reliance should not be placed on them. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause actual performance and financial results in future periods to differ materially from any projections of future performance or result expressed or implied by such forward-looking statements.

All investments, including real estate, is speculative in nature and involves a risk of loss. We encourage any investors to invest carefully. We also encourage investors to get personal advice from your professional investment advisor, CPA or other trusted financial advisor and to make independent investigations before acting.

IT IS IMPORTANT YOU UNDERSTAND THAT WHILE WE ARE PROVIDING PROJECTIONS BASED ON THE FACTS AND FIGURES AVAILABLE, NO ONE CAN TRULY PREDICT THE FUTURE.

Portfolio Summary

This offering presents a prime opportunity to acquire highly coveted cashflowing new multifamily development in San Diego. These projects’ prime locations and favorable unit mix allow savvy investors to cash in on the supply-demand imbalances in one of the country’s most sought-after cities. Named Marcus & Millichap’s #2 market for multifamily in 2024, San Diego offers immense opportunity to attract a strong tenant base in a highly diversified economy.

Financing Overview

Income Statement

5 and 10 year cash flow scenarios

EXIT ASSUMPTIONS

Rent Roll

Operator Overview: Full Vertical Integration

Christian Spicer Founder, SDRE

SDRE Homebuyers is led by Christian, who himself has over 15 years of San Diego real estate experience. Beginning from simple property management, Christian has built his business over the years by expanding his repertoire to include residential sales, property flips, and now includes full-fledged investor-based projects.

Jody Watkins Founder, Vertical MVMT

In his extensive 30-plus years of construction experience, Jody has amassed a comprehensive portfolio of achievements. His journey spans landmark projects like Petco Park, Indian Wells Tennis Garden, and the Hotel Del Coronado, as well as diverse multi-family and hospitality ventures across Southern California. Holding both California State License Board A (General Engineering Contractor) and B (General Building Contractor) licenses for the past 18 years, Jody’s expertise covers all sectors of the construction industry. His ascent from laborer in the late 1980s to his current role at Vertical MVMT reflects his profound understanding of every facet of project development.

Tommy Hinson Founder, Fletcher Cove Capital

Mr. Hinson is a partner and director at national multifamily and single-family development firm, where he oversees capital markets and investor relationships. He also previously served as the Chairman of a debt fund used for land development and construction. He has been responsible for real estate underwriting and analysis, as well as capital structuring for several companies. Additionally, Mr. Hinson is the Chief Executive Officer at Investors 1031 Exchange. He has been in the fiduciary services industry since 1996 and has executed over $500M of various real estate investments, as both an employee and a Principal.

Jesse Leon Founder, PRO-CAL

Jesse began his career working as a draftsman in the summer of 2006. He started his own company, KL Drafting & Design, in 2009. Jesse is very familiar with the zoning and building codes of all the jurisdictions within San Diego County. He has processed over 1,500 permits throughout the county of San Diego.

3075–87 Martin Ave

Neighborhood Overview

The Logan Heights neighborhood of San Diego is known to be a place where art, culture, and community come together in a unique tapestry. Living in Logan Heights means embracing a dynamic community that’s both culturally rich and conveniently close to the heart of the city. In this quickly growing market, this asset is well positioned for rent growth and appreciation with the investor’s longevity in mind.

SAN DIEGO IS THE 17TH LARGEST METROPOLITAN ECONOMY IN THE UNITED STATES AND THE 4TH IN CALIFORNIA. San Diego’s economy, known for its diversity and dynamism, encompasses various sectors including defense, tourism, international trade, research, and manufacturing. In 2022, the Greater San Diego area’s gross domestic product (GDP) was reported at $257 billion by the U.S. Bureau of Economic Analysis, ranking it as the 17th largest metropolitan economy in the United States and the 4th in California. Additionally, it forms a part of the San Diego–Tijuana international metropolitan conurbation, which house approximately 5.4 million residents. A significant contributor to San Diego’s economic strength is the defense and military sector, representing about 15 percent of the regional

economy and providing employment to over 100,000 individuals. The city boasts the world’s largest naval fleet and houses top defense contractors like General Atomics, Cubic, and NASSCO. San Diego is also pivotal in naval aviation history, hosting numerous naval air stations and the Space and Naval

Warfare Systems Command (SPAWAR). Tourism also plays a vital role in San Diego’s economy, drawing in excess of 35 million visitors each year and generating around $10.8 billion in direct spending. The city’s beaches, parks, museums, zoo, aquarium, and historical sites like the Gaslamp Quarter and USS Midway Museum are major attractions. Additionally, San Diego is the venue for prominent events including Comic-Con, the San Diego County Fair, and the Farmers Insurance Open golf tournament. The city is a central hub for international trade, particularly with Mexico, its primary trade partner. The San Diego–Tijuana border, noted as the busiest land border crossing in the Western Hemisphere, witnesses over 50 million people and $54 billion in goods annually. San Diego’s strategic location near the Pacific Rim and its deepwater port in San Diego Bay, which handles significant cargo and cruise traffic, bolster its trade potential. Research and manufacturing, especially in biotechnology,

medical devices, telecommunications, and electronics, are other key sectors in San Diego. The city is home to over 600 life sciences companies, including Illumina, Thermo Fisher Scientific, and Neurocrine Biosciences, as well as renowned research institutions like the Salk Institute, the Scripps Research Institute, and the Sanford Burnham Prebys Medical Discovery Institute.

San Diego also leads in wireless technology, with major companies like Qualcomm, Nokia, and Kyocera, and hosts the Wireless Health Institute at UC San Diego.

The real estate market in San Diego’s 92113 zip code, encompassing neighborhoods such as Logan Heights and Barrio Logan, has experienced notable growth and competitiveness over the past year. Here’s an overview of the current market conditions:

Median Home Prices:

y As of March 2024, the median listing home price in 92113 was $699,500, reflecting a 9.5% year-over-year increase.

Realtor.com

y In September 2024, the median sale price was $690,000, up 2.2% compared to the previous year.

Redfin

Market Competitiveness:

y The 92113 housing market is somewhat competitive, with homes typically selling for about 0.5% below the list price and becoming pending in around 40 days.

Realtor

y Approximately 47.4% of homes sold below asking price in November 2024, indicating potential opportunities for buyers.

Rocket Homes

Inventory and Listings:

y In November 2024, there were 49 homes for sale in 92113, a 3.9% decrease from the previous month.

Rocket Homes

y The area offers a diverse range of properties, including single-family homes, condos, and multi-family units, catering to various buyer preferences.

Zillow

Market Trends:

y The median listing home price per square foot was $589 in March 2024, indicating rising property values.

Realtor

y Homes in 92113 sold for approximately 0.5% below asking price on average in March 2024, suggesting a slight negotiation margin for buyers.

Realtor

Schools and Amenities:

y The 92113 area hosts 24 public schools rated good or higher by GreatSchools, along with 4 private and charter schools, making it appealing for families.

Realtor

y Residents benefit from proximity to shopping centers, parks, and recreational facilities, enhancing the area’s residential appeal.

Realtor

Overall, the 92113 real estate market exhibits robust growth and competitiveness, with increasing home values and a dynamic inventory. Its family-friendly environment, quality schools, and convenient amenities continue to attract buyers and investors alike.

4674 Firestone

Neighborhood Overview

Situated away from the hustle and bustle of beach communities and bordered by Interstates 805, 5, and 8, as well as Highway 52, Clairemont offers one of the most convenient living experiences in San Diego. This location provides quick access to all that San Diego has to offer, including the picturesque Mission Bay and the Southern California coastline, as well as major workforce centers including UTC, Kearney Mesa, Mission Valley, and Downtown San Diego. With its premium location, innovative design offering tenants privacy, and luxurious enhancements, (PROPERTY NAMES) provides investors with the rare opportunity to acquire a pride of ownership asset that is poised to capture rental premiums for generations.

Clairemont offers an idyllic coastal lifestyle that embodies the essence of San Diego living. Home to approximately 82,000 residents, Clairmont is rapidly improving as a development hotbed with new projects seen from most streets.

Clairemont is bordered by Interstate 805 on the east, Interstate 5 to the west, State Route 52 to the north, and the community of Linda Vista to the south. Situated in the heart of San Diego, Clairemont provides excellent connectivity to the region’s major attractions.

With its close proximity to the Pacific Ocean, residents are treated to breathtaking sunsets, refreshing sea breezes, and a myriad of outdoor activities year-round. The community spirit is strong, with numerous local events, farmers’ markets, and recreational facilities fostering a sense of belonging among residents. Many neighborhoods have views of Mission Bay and the Pacific Ocean on the west, and Fortuna Mountain and Cowles Mountain to the east. Neighborhoods along Tecolote Canyon have views of this preserved open space canyon system.

Major San Diego County employers include Sempra Energy, University of California, San Diego, Kaiser, SeaWorld, Northrop Grumman, San Diego State University, and many biotech companies such as Illumina (ranked the world’s third smartest company by MIT), Qualcomm, Genentech, and Thermo-Fischer Scientific. San Diego County is also the headquarters of the golf industry, with brands such as Taylor Made, Callaway, and Titleist.

San Diego’s skyline has experienced significant improvements over the past 20 years while the beach and downtown neighborhoods have become major vacation centers and development hotbeds in recent years.

y As of July 2024, the median listing home price in 92117 was $1.2 million, reflecting an 11.5% increase year-over-year.

Realtor

y In November 2024, the median sold home price rose to $1.1 million, marking a 14.8% increase compared to November 2023.

Rocket Homes

Market Competitiveness:

y The 92117 housing market is highly competitive, with homes typically receiving multiple offers and selling in around 16.5 days.

Redfin

y Approximately 47.4% of homes sold below asking price in November 2024, indicating potential opportunities for buyers.

Rocket Homes

Inventory and Listings:

y In November 2024, there were 88 homes for sale in 92117, a 4.3% decrease from the previous month.

Rocket Homes

y The area offers a diverse range of properties, including single-family homes, condos, and townhouses, catering to various buyer preferences.

Trulia

Market Trends:

y The median listing home price per square foot was $789 in July 2024, up 11.5% year-over-year, indicating rising property values.

Realtor

y Homes in 92117 sold for approximately 0.93% below asking price on average in July 2024, suggesting a slight negotiation margin for buyers.

Realtor

Schools and Amenities:

y The 92117 area hosts 23 public schools rated good or higher by GreatSchools, along with 8 private and charter schools, making it appealing for families.

Realtor

y Residents benefit from proximity to shopping centers, parks, and recreational facilities, enhancing the area’s residential appeal.

Realtor

Overall, the 92117 real estate market exhibits robust growth and competitiveness, with increasing home values and a dynamic inventory. Its family-friendly environment, quality schools, and convenient amenities continue to attract buyers and investors alike.

7128 E Hyatt

2 Bed / 2 Bath 939 $3,450 3.67 $3,450 $ 3.67

Property Summary:

Nestled in the dynamic Linda Vista neighborhood, this luxury 6 unit property presents an exceptional rental income opportunity just moments away from the University of San Diego. With its desirable location, strong rental demand fueled by the university, abundant local amenities, and proximity to San Diego’s top attractions, this property is perfectly positioned for success.

Each unit has been meticulously designed with modern renters in mind, incorporating high-end finishes and functional layouts that prioritize both comfort and visual appeal.

High Demand Location:

The Linda Vista community is a highly desirable rental market, with 46.65% of homes occupied by renters. Positioned within close proximity to the University of San Diego, San Diego State University, and the University of California San Diego, (PROPERTY NAME) benefits from a strong demand for housing in the area, ensuring steady tenant interest and consistently low vacancy rates.

Area Overview:

Linda Vista is a quickly growing suburban area of San Diego home to many popular bars and restaurants. This community is right next to the beautiful Telecolote Canyon, known for its popular hiking trails, as well as Mission Bay, SeaWorld, Fiesta Island Park, popular spots for water sport activities, bicycling, picnics, barbecues, and other outdoor activities. Linda Vista is just over a mile from the University of San Diego, a highly-rated private university with over 8,000 enrolled students. The community has easy freeway access, being conveniently located between the I-5, the I-8, and the SR-163 and has a bus and trolley system with several stops throughout the community.

Median Home Prices:

y As of July 2024, the median listing home price in 92111 was $899,000, consistent with the previous year.

Realtor

y In October 2024, the median sold home price increased to $925,000, reflecting a 10.8% rise compared to October 2023.

Rocket Homes

Market Competitiveness:

y The 92111 housing market is very competitive, with homes typically receiving multiple offers and selling in around 17 days.

Redfin

y In October 2024, approximately 46% of homes sold below asking price, indicating some negotiation opportunities for buyers.

Rocket Homes

Inventory and Listings:

y As of October 2024, there were 87 homes for sale in 92111, a 7.4% increase from the previous month.

Rocket Homes

y The area offers a diverse range of properties, including single-family homes, condos, and townhouses, catering to various buyer preferences.

Realtor

Market Trends:

y The median listing home price per square foot was $686 in July 2024, indicating stable property values.

Realtor

y Homes in 92111 sold for approximately 1.06% above asking price on average in July 2024, suggesting a seller’s market.

Realtor

Schools and Amenities:

y The 92111 area hosts several public and private schools, making it appealing for families.

Realtor

y Residents benefit from proximity to shopping centers, parks, and recreational facilities, enhancing the area’s residential appeal.

Realtor

Overall, the 92111 real estate market exhibits robust growth and competitiveness, with increasing home values and a dynamic inventory. Its family-friendly environment, quality schools, and convenient amenities continue to attract buyers and investors alike.

3346 Lockwood Ave

Neighborhood Overview

Serra Mesa, located in San Diego’s 92123 zip code, is a central, family-friendly community known for its convenient access to major freeways, business hubs, and popular attractions. Nestled between Mission Valley and Kearny Mesa, Serra Mesa boasts a mix of mid-century homes, modern developments, and well-maintained parks. Key amenities include the expansive Ruffin Canyon Open Space Preserve, perfect for outdoor enthusiasts, and the Serra Mesa Recreation Center, offering sports facilities, playgrounds, and community programs. Residents enjoy proximity to major retail centers like Fashion Valley Mall, local eateries, and top-rated schools. The area is also close to prominent medical facilities, including Sharp Memorial and Rady Children’s Hospital, making it an attractive choice for healthcare professionals. Its central location, diverse housing options, and community-oriented vibe make Serra Mesa a desirable place to live and invest in San Diego.

Median Home Prices:

y As of November 2023, the median listing home price in 92123 was $875,000, consistent with the previous year.

y In July 2024, the median sale price reached $980,000, marking a 5.4% increase compared to July 2023.

Redfin

Market Competitiveness:

y The 92123 housing market is considered very competitive, with homes typically receiving multiple offers and selling for about 2% above the list price.

Redfin

y On average, homes in this area sell after approximately 15.5 days on the market, indicating a brisk market pace.

Redfin

Inventory and Listings:

y There are currently 28 homes for sale in 92123, with prices ranging from $388,000 to $1.2 million.

Realtor

y The area also offers 123 rental properties, with monthly rents between $1,600 and $5,700.

Realtor

Market Trends:

y The median listing home price per square foot is $616, reflecting the area’s property value.

Realtor

y The sale-to-list price ratio stands at 100%, indicating that homes are selling at their asking prices on average.

Realtor

Schools and Amenities:

y Zip code 92123 hosts 14 public schools rated good or higher by GreatSchools, along with 8 private and charter schools, making it appealing for families.

Realtor

y The area is well-served by numerous grocery stores, cafes, and restaurants, enhancing its residential appeal.

Realtor

Overall, the 92123 real estate market exhibits stability with a trend toward increasing home values, driven by high demand and limited inventory. Its competitive nature, coupled with quality schools and amenities, continues to attract buyers and investors.

6728 Thomson Ct

1 Bed / 1 Bath 256 $2,200 8.59 $2,200 $ 8.59

Property Summary:

Nestled in the dynamic Linda Vista neighborhood, this luxury 5 unit property presents an exceptional rental income opportunity just moments away from the University of San Diego. With its desirable location, strong rental demand fueled by the university, abundant local amenities, and proximity to San Diego’s top attractions, this property is perfectly positioned for success.

Each unit has been meticulously designed with modern renters in mind, incorporating high-end finishes and functional layouts that prioritize both comfort and visual appeal.

High Demand Location:

Area Overview:

Median Home Prices:

y As of July 2024, the median listing home price in 92111 was $899,000, consistent with the previous year. Realtor

y In October 2024, the median sold home price increased to $925,000, reflecting a 10.8% rise compared to October 2023.

Rocket Homes

Market Competitiveness:

y The 92111 housing market is very competitive, with homes typically receiving multiple offers and selling in around 17 days.

Redfin

y In October 2024, approximately 46% of homes sold below asking price, indicating some negotiation opportunities for buyers.

Rocket Homes

Inventory and Listings:

y As of October 2024, there were 87 homes for sale in 92111, a 7.4% increase from the previous month.

Rocket Homes

y The area offers a diverse range of properties, including single-family homes, condos, and townhouses, catering to various buyer preferences.

Realtor

Market Trends:

y The median listing home price per square foot was $686 in July 2024, indicating stable property values.

Realtor

y Homes in 92111 sold for approximately 1.06% above asking price on average in July 2024, suggesting a seller’s market.

Realtor

Schools and Amenities:

y The 92111 area hosts several public and private schools, making it appealing for families.

Realtor

y Residents benefit from proximity to shopping centers, parks, and recreational facilities, enhancing the area’s residential appeal.

Realtor

Overall, the 92111 real estate market exhibits robust growth and competitiveness,

with increasing home values and a dynamic inventory. Its family-friendly environment, quality schools, and convenient amenities continue to attract buyers and investors alike.

4578 Jicarillo Ave

Neighborhood Overview

y As of July 2024, the median listing home price in 92117 was $1.2 million, reflecting an 11.5% increase year-over-year.

Realtor

y In November 2024, the median sold home price rose to $1.1 million, marking a 14.8% increase compared to November 2023.

Rocket Homes

Market Competitiveness:

y The 92117 housing market is highly competitive, with homes typically receiving multiple offers and selling in around 16.5 days.

Redfin

y Approximately 47.4% of homes sold below asking price in November 2024, indicating potential opportunities for buyers.

Rocket Homes

Inventory and Listings:

y In November 2024, there were 88 homes for sale in 92117, a 4.3% decrease from the previous month.

Rocket Homes

y The area offers a diverse range of properties, including single-family homes, condos, and townhouses, catering to various buyer preferences.

Trulia

Market Trends:

y The median listing home price per square foot was $789 in July 2024, up 11.5% year-over-year, indicating rising property values.

Realtor

y Homes in 92117 sold for approximately 0.93% below asking price on average in July 2024, suggesting a slight negotiation margin for buyers.

Realtor

Schools and Amenities:

y The 92117 area hosts 23 public schools rated good or higher by GreatSchools, along with 8 private and charter schools, making it appealing for families.

Realtor

y Residents benefit from proximity to shopping centers, parks, and recreational facilities, enhancing the area’s residential appeal.

Realtor

5210 Los Robles

3 Bed / 2 Bath

3 Bed / 2 Bath 1200 $6,250 5.21 $6,250 $ 5.21

1 Bed / 1 Bath 460 $3,500 7.61 $3,500 $ 7.61

Carlsbad’s 92008 zip code is a picturesque coastal area known for its charming village atmosphere, scenic beaches, and vibrant community life. Nestled along the Pacific Ocean, 92008 features stunning oceanfront properties, modern developments, and classic beach cottages. The area is home to Carlsbad Village, a lively downtown district filled with boutique shops, art galleries, and diverse dining options. Outdoor enthusiasts enjoy miles of sandy beaches, watersports, and trails at the Agua Hedionda Lagoon and Batiquitos Lagoon. Top-rated schools and family-friendly parks, such as Holiday Park and Magee Park, enhance its appeal. Residents also benefit from convenient access to major transportation hubs like the Carlsbad Village train station and Interstate 5. With a mix of relaxed beachside living and urban amenities, 92008 is one of San Diego County’s most desirable coastal destinations.

The real estate market in Carlsbad’s 92008 zip code has experienced notable activity over the past year. Here’s an overview of the current market conditions:

Median Home Prices:

y As of July 2024, the median listing home price in 92008 was $1.9 million, reflecting a 4.9% decrease year-over-year.

Realtor

y In October 2024, the median sale price was $1.5 million, marking a 4.5% increase compared to October 2023.

Redfin

Market Competitiveness:

y The 92008 housing market is somewhat competitive, with homes typically receiving two offers and selling in around 45 days.

Redfin

y Homes in this area sold for approximately 3.21% below asking price on average in July 2024.

Realtor

Inventory and Listings:

y There are currently 118 homes for sale in 92008, with prices ranging from $4,900 to $8.8 million.

Realtor

y The area also offers 130 rental properties, with monthly rents between $1,600 and $5,700.

Realtor

Market Trends:

y The median listing home price per square foot was $828 in July 2024, indicating a slight decrease in property values.

Realtor

y The sale-to-list price ratio stood at 96.79%, suggesting that homes are selling slightly below their asking prices on average.

Realtor

Schools and Amenities:

y The 92008 area hosts 14 public schools rated good or higher by GreatSchools, along with several private and charter schools, making it appealing for families.

Realtor

y Residents benefit from proximity to numerous grocery stores, cafes, and restaurants, enhancing the area’s residential appeal.

Realtor

Overall, the 92008 real estate market exhibits stability with a trend toward increasing home values, driven by demand and a diverse inventory. Its family-friendly environment, quality schools, and convenient amenities continue to attract buyers and investors alike.