San Diego – Value Added Opportunity

A G E N D A

1. San Diego – Big Picture

2. The Asset

3. Valuation

4. Comps

5. Marketing Plan

San Diego– Big Picture

Solana Vista - The Asset

Solana Vista - Valuation

Solana Vista - Comps

Solana Vista – San Diego

1. Location -the property is east of the 805 freeway which is a barrier and the window to the property is questionable

We will overcome this objection by taking buyers to Cabrillo Knolls 3 blocks away and show how higher rents can be obtained despite being east of the 805 freeway. We will also show the close proximity to tens of thousands of jobs just five minutes away in either direction.

2. Property is fully renovated. We will show that the existing owner rehabilitated the exterior of the property, but did not complete all of the interior upgrades. We will show them Cabrillo Knolls and the comparison to what can be done to make cosmetic improvements.

3. The property is too close to the freeway. We can also show another property called Del Sol which is located directly on the freeway in Golden Hills and achieving above market rents.

B u y e r O b j e c t i o n s & H o w t o O v e r c o m e T h e m

• Fix all Exterior lighting • Clean Interior hallways and clean interior hallway carpets • Repair broken glass • Install new plantings around the entries • Repair and seal all exterior decking for water intrusion

P o s i t i o n i n g t h e A s s e t s f o r S a l e

Solana Vista

T h e P i t c h – S o l a n a V i s t a

• Proximity to Mission Valley • Location. The property is located in the 92104 zip code, also known as North

Park. North Park is exploding with growth and values and rents are escalating • Great Freeway access - Minutes from Highway 8 & 805 Freeway • Building is next to Within 4 miles of SDSU, University of San Diego, Mesa &

Grossmant Collage. Together more than 50,000 students • Within 3 miles of 3 regional malls Fashion Valley Regional Mall & Mission

Valley Center & Fenton Marketplace, IKEA & COSTCO • Within 6 miles of 5 major hospitals Scirpps Mercy, Sharp Hospital, UCSD

Medical , Grossmont & Rady Children's Hospital • Downtown San Diego jobs, Petco Park and the Convention Center are within

miles of the site • The beach and Balboa Park are within miles of site – Great quality of life • Timing is right for a Surging Market • Renovation plan of upgrades to interiors

Engagement Team

Steve Huffman •Multi-Family advisor for 27 continuous years, plus additional years in the industry, longer than any advisor in the San Diego market. •California Broker of Record for Hendricks and Partners and Partner in the firm •Son of San Diego's largest apartment builder, Ray Huffman, resulting in a lifetime of experience in the multi-family industry literally from the ground up. •Owner / operator of over a dozen properties between 14 to 408 units which provides on-the-ground rental and ownership experience.

A d v i s o r y - Te a m E f f o r t

Allen Chitayat •Multifamily Advisor in San Diego for past 28 years •Over 450 closed transactions with sales of over $1 billion •Sold Solana Vista on 2 prior occasions in 2000 and 2007 •Over 80 closed transactions in the submarket •Owner/Operator of currently and previously held multifamily assets providing a clear understanding of identifying opportunities for improved operations

A d v i s o r y - Te a m E f f o r t

Shane Shafer • Intimate knowledge of the Santa Ana & Fullerton sub-markets • Experience in Orange County market for over 10 Years • Combined total historical sales over $1 Billion • Current Recent Closings and in Escrow in excess of $191MM in

the immediate market • Currently have over 40% Current Leading Market Share in

Orange County • Has been awarded recently a number of high profile

assignments in Orange County by three different clients

A d v i s o r y - Te a m E f f o r t

Steve Huffman Allen Chitayat Shane Shafer

Experts in the Local Market

Clarissa Shanner & Nicole May

Team Coordinators

Allen Freeman Berkadia

Debt

Marketing Plan

Tour Plan – Solana Vista

1) Meet prospective buyer(s) in designated

parking areas between the North Building (3810) and South Building (3710)

2) Walk to 3810 Building front entrance to Rental Office

3) Tour 3810 rent ready vacant units 4) Tour 3810 laundry rooms and adjacent

"Bonus Rooms" and Roof Top Deck. 5) Out to street and to Front of South

Building (3710) Barbeque/Picnic Area 6) Enter 3710 building through Main

Entrance 7) Tour 3710 rent ready vacant units 8) Tour laundry rooms and adjacent rooms 9) Elevator down to parking garage and

tour parking garage areas of both buildings.

Ta r g e t B u y e r T y p e s

• Large Private Capital

• Regional and Local Private Capital

• 1031 Exchange Buyers

• Sponsored Equity

• New-to-the Market Capital

• Canadian Buyers (International)

• West Coast Buyers – Bridesmaids

• Current Assignments = Synergistic Buyer Pool

S y n e r g i s t i c A s s i g n m e n t s

N a t i o n a l A p a r t m e n t - C e n t r a l D a t a b a s e

• Only One Of Its Kind In The Country

• 145,000 Apartment Assets Across The United States

• 250,000 Apartment Owners & Investors (Quiet Capital)

• Every Sale In The US Updated Weekly (On-markets / Escrows) – Bridesmaid List

• Every Active Apartment Development & Developer

• Real Time Visibility Into Current And Emerging Buyers and Capital

• Asset Flyer • Asset Offering Memorandum • Dedicated Website - with Full Tracking • Aerials and Story Boards • Electronic Blast –Drive to Asset Website • Print Mailing – Drive to Asset Website • Prioritized Calling Campaign • Tracking of Site Activity – Personal Calls • Executed CA’s – Personal Calls • Bridesmaid List, All US Deals YTD – Personal Calls • Personal Tours (Vision Selling) • All Materials Paid for By Hendricks & Partners

M u l t i - C h a n n e l M a r k e t i n g

SPI Properties

N at i o n a l P l at fo r m

National Apartment Marketing & Research CenterTM

10 Apartment Divisions

Focused Exclusively on Apartment Services

One Unified Team – Advisor Focus on The Deal

Full Time Apartment Research Staff

Tracking All Buyers Current, New & Emerging, Sponsors & Capital

Tracking All National Sales & Escrows, New Development

A PA R T M E N T R E S E A R C H D I V I S I O N

Class A Sales – Scrubbed US

In – House Design Department

Flyers, Packages, Research Reports

A PA R T M E N T M A R K E T I N G D I V I S I O N

Highest Quality Materials with Expedited Production

Speed to Market with the Highest Possible Quality

Real-Time Production of Apartment Related Materials

A PA R T M E N T P R O D U C T I O N D I V I S I O N

San Diego – Value Added Opportunity