CYPRESS MEADOWS APARTMENT HOMES227 S. Canoga Place, Anaheim, CA 92804

A 22-Unit Multi-Family Community

CONFIDENTIALITY AGREEMENTThe information contained in the following offering memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and it should not be made available to any other person or entity without the written consent of Marcus & Millichap. By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such informa-tion in the strictest confidence. The recipient further agrees that recipient will not photocopy or duplicate any part of the offering memorandum. If you have no interest in the subject property at this time, please return this offering memorandum to Marcus & Millichap. This offering memorandum has been prepared to provide summary, unverified financial and physical information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCBs or asbestos, the compliance with local, state and federal regulations, the physical condition of the improvements thereon, or the financial condition or busi-ness prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this offering memorandum has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

Prospective buyers shall be responsible for their costs and expenses of investigating the subject property. ACT ID ZAA0100189

NON-ENDORSEMENT NOTICEMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely

included for the purpose of providing tenant lessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONTACT THE MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

TABLE OF CONTENTS01 PROPERTY DESCRIPTION

02 FINANCIAL ANALYSIS

03 MARKET COMPARABLES

04 MARKET OVERVIEW

PROPERTY DESCRIPTIONThe Offering 06

Investment Highlights 07

Site Maps 08

Property Summary 12

Property Photos 14

6 PROPERTY DESCRIPTION

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Marcus & Millichap, as the exclusive listing agent, is pleased to present the Cypress Meadows Apartment Homes, a well maintained 22-unit apartment community located in the strong rental market of Anaheim, California within the Greater Orange County area. Situated on a 31,950 square foot lot the property consists of (20) very large one bedroom/ one bathroom units and (2) two bedroom/ two bathroom units totaling approximately 16,694 square feet. All units are separately metered for gas and electricity. Tenants enjoy amenities such as: ample on-site parking (including 29 enclosed garages and spaces), on-site, building owned laundry facility, community pool, BBQ/picnic area, gated/secured apartment community and yards/patios. Residents also enjoy easy access to freeways, major retail, job centers and schools.

This offering presents an opportunity for an investor to acquire a very well-maintained stable asset in the desirable rental market of Anaheim. The location offers high visibility in an area known for its strong tenancy, good rent growth, and a historically high occupancy rate. Given the strength of the apartment fundamentals in this submarket, the subject property is well positioned to capture this market’s continued growth.

VITAL DATAPrice $5,400,000

Down Payment 45% / $2,430,000

Loan Amount $2,970,000

Loan Type New

Interest Rate / Amortization 3.90% / 30 Years

Price/Unit $245,455

Price/SF $323

Number of Units 22

Rentable SF 16,694 SF

Year Built 1963

Lot Size 31,950 SF

Parcel Number 135-331-17

FINANCIAL HIGHLIGHTSCURRENT MARKET

CAP Rate 4.80% 5.49%

GIM 13.84 12.61

Net Operating Income $259,280 $296,618

Net Cash Flow After Debt Service 3.75% / $91,177 5.29% / $128,515

Total Return 5.94% / $144,395 7.57% / $183,846

UNIT MIXNUMBER OF UNITS UNIT TYPE APPROX. SF

20 1 Bed / 1 Bath 735

2 2 Bed/ 2 Bath 1,000

22 16,694

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• No Rent Control• Large, Spacious Apartment Homes• Desirable Single-Story Units• Patios, Yards, BBQ, Pool, & Picnic Area• Gated Apartment Community• Ample On-Site Parking with (29) Enclosed

Garages and Spaces• Upside in Rents• Located on Quiet Residential Street• Building Owned Laundry Facility• Highly Desirable Rental Location in

Anaheim• Separately Metered for Gas & Electricity• Well-Maintained Asset• Close to Cypress College, Freeways, Knott’s

Berry Farm, Employment, & Retail

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KNOTT’S BERRY FARM

BEACHBOULEVARD

WESTERN HIGH SCHOOL

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SITE DESCRIPTIONPrice $5,400,000

Property Address 227 S. Canoga Pl., Anaheim, CA 92804

Parcel Number 135-331-17

Number of Units 22

Year Built/Renovated 1963

Rentable SF 16,694 SF

Lot Size 31,950 SF

Zoning RM-4

PROPOSED FINANCINGFIRST TRUST DEED

Loan Type Proposed New

Down Payment 45% / $2,430,000

Loan Amount $2,970,000

Loan to Value 55%

Interest Rate 3.90%

Loan Term 30 Years

5 Years Fixed

Amortization 30 Years

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Newport Harbor

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FINANCIAL ANALYSISPricing Summary 20

Rent Roll 21

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FINANCIAL SUMMARYPrice $5,400,000Down Payment 45% / $2,430,000Loan Amount $2,970,000Interest Rate / Amortization 3.90% / 30 YearsPrice/Unit $245,455Price/SF $323

RETURN SUMMARYCURRENT MARKET

CAP Rate 4.80% 5.49%GIM 13.84 12.61Cash-on-Cash 3.75% 5.29%Total Return 5.94% 7.57%

OPERATING INCOME - ANNUALIZEDCURRENT MARKET

Gross Scheduled Rent $377,100 $415,200Total Other Income $13,200 $13,200Gross Potential Income $390,300 $428,400Less: Vacancy/Concessions 2.00% / $7,806 2.00% / $8,568Effective Gross Income $382,494 $419,832Less: Expenses 32.21% / $123,214 29.35% / $123,214NET OPERATING INCOME $259,280 $296,618Cash Flow $259,280 $296,618Debt Service $168,103 $168,103NET CASH FLOW AFTER DEBT SERVICE 3.75% / $91,177 5.29% / $128,515Principal Reduction $53,217 $55,330TOTAL RETURN 5.94% / $144,395 7.57% / $183,846

OPERATING EXPENSES - ANNUALIZEDCURRENT MARKET

Property Taxes & Assessments $59,400 $59,400Insurance $5,614 $5,614Utilities $24,000 $24,000Repairs & Maintenance $10,000 $10,000Landscaping $2,200 $2,200On-Site Payroll $9,000 $9,000Management Fee $11,000 $11,000Pool $2,000 $2,000TOTAL EXPENSES $123,214 $123,214EXPENSES/UNIT $5,601 $5,601

UNIT SUMMARY CURRENT MARKETUNIT TYPE # OF UNITS APPROX. SF RENTAL RANGE MONTHLY INCOME MARKET RENT MONTHLY INCOME

1 Bedroom / 1 Bath 20 735 $1,200 - $1,625 $28,250 $1,550 $31,0002 Bedroom / 2 Bath 2 1,000 $1,475 - $1,700 $3,175 $1,800 $3,600TOTAL FIGURES 22 7,323 $31,425 $34,600GROSS ANNUALIZED RENTS $377,100 $415,200

BUILDING SUMMARYProperty Address 227 S. Canoga Pl., Anaheim, CA 92804Number of Units 22Year Built/Renovated 1963Rentable SF 16,694 SFLot Size 31,950 SF

21FINANCIAL ANALYSIS

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UNIT UNIT TYPEAPPROX.

SFCURRENT

RENT / MONTHMARKET

RENT / MONTH1 1 Bedroom / 1 Bath 735 $1,425 $1,5502 1 Bedroom / 1 Bath 735 $1,450 $1,5503 1 Bedroom / 1 Bath 735 $1,375 $1,5504 1 Bedroom / 1 Bath 735 $1,550 $1,5505 1 Bedroom / 1 Bath 735 $1,375 $1,5506 1 Bedroom / 1 Bath 735 $1,375 $1,5507 1 Bedroom / 1 Bath 735 $1,450 $1,5508 1 Bedroom / 1 Bath 735 $1,375 $1,5509 1 Bedroom / 1 Bath 735 $1,475 $1,55010 2 Bedroom / 2 Bath 1,000 $1,700 $1,80011 1 Bedroom / 1 Bath 735 $1,425 $1,55012 1 Bedroom / 1 Bath 735 $1,375 $1,55013 1 Bedroom / 1 Bath 735 $1,350 $1,55014 2 Bedroom / 2 Bath 1,000 $1,475 $1,80015 1 Bedroom / 1 Bath 735 $1,625 $1,55016 1 Bedroom / 1 Bath 735 $1,375 $1,55017 1 Bedroom / 1 Bath 735 $1,375 $1,55018 1 Bedroom / 1 Bath 735 $1,495 $1,55019 1 Bedroom / 1 Bath 735 $1,200 $1,55020 1 Bedroom / 1 Bath 735 $1,375 $1,55021 1 Bedroom / 1 Bath 735 $1,425 $1,55022 1 Bedroom / 1 Bath 735 $1,380 $1,550

$1.40$1.45$1.50$1.55$1.60$1.65$1.70$1.75$1.80$1.85$1.90

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UNIT RENTUNIT DISTRIBUTION

MARKET COMPARABLESRecent Sales - Map 24

Recent Sales 25

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PROPERTY COESALE

PRICEPRICE/

UNITPRICE/

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RATEYEAR BUILT

Subject Property - $5,400,000 $245,455 $323 4.80% 1963

22 Units - Featuring (20) 1 Bed/ 1 Bath units and (2) 2 Bed/ 2 Bath units. 227 S. Canoga Pl.

Anaheim, CA 92804

110/5/2018 $4,500,000 $375,000 $447 3.88% 2017

12 Units - Featuring 100% 1 Bed/ 1 Bath units.130 S. Hewes St.

Orange, CA 92869

22/28/2019 $17,280,000 $278,710 $357 4.00% 1975

62 Units - Featuring (18) 1 Bed/ 1 Bath and (44) 2 Bed/ 1 Bath units.3230 W. Lincoln Ave.

Anaheim, CA 92801

31/17/2019 $5,100,000 $283,333 $311 3.25% 1988

18 Units - Featuring 100% Studio units.12626 Nelson St.

Garden Grove, CA 92840

411/16/2018 $4,325,000 $393,182 $387 3.56% 1965

11 Units - Featuring (10) 2 Bed/ 1 Bath and (1) 3 Bed/ 2.5 Bath unit(s). 2630-2636 W. Porter Ave.

Fullerton, CA 92833

MARKET OVERVIEWSubmarket - Anaheim 28

Market Analysis 30

Demographic Analysis 32

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RENTAL MARKETThe Anaheim rental market is one of the strongest performing markets in the Greater Orange County Metro. With an average occupancy rate in the high ninety percent range and continual rent growth, the demand for rental housing is apparent.

ECONOMIC DRIVERSAnaheim consists of major employers and retailers and demonstrates a rapidly growing population. Disneyland Park & Resort is the regions larg-est employer with more than 25,000 employees, and plans to commence on a billion dollar expansion plan which should create some addition-al 1,400 jobs. Apart from Disneyland, other tourist hotspots include the Anaheim Convention Center, Honda Center, and Angel Stadium; two of the mentioned points of interest are considered to be the homes of the Anaheim Ducks and the Angels baseball team. For these reasons, it can be said that Anaheim holds a very stable tourism-based economy.

Anaheim Convention Center

Honda Center

Angel Stadium

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Disneyland Park & Resort

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ORANGE COUNTYOVERVIEW

METRO HIGHLIGHTS

Located in the heart of Southern California, Orange County comprises the Santa Ana-Anaheim-Irvine metro area. The county’s land area covers 790 square miles and borders the counties of Los An-geles, San Diego, Riverside, and San Bernardino. The western edge of Orange County is defined by 42 miles of Pacific Ocean beach front, one of the longest uninterrupted stretches of public beaches in the world.

Outdoor activities, beaches, and temperate climate attract visitors, residents, and businesses, expanding the local population to more than 3.2 million. Anaheim, the home to major theme parks, is the largest city in the county with a population of 360,000 people. Santa Ana, Irvine, and Huntington Beach all have more than 200,000 residents.

Tourism, high-tech operations, healthcare, education, and aerospace/military contractors are major employers in the Orange County metro area.

Numerous foreign investment firms and businesses establish headquarters in the area to be near the Southern California ports of entry.

Orange County is 30 miles to Los Angeles and 90 miles to San Diego. The Mexican border is 110 miles away.

DIVERSE EMPLOYMENT

EXTENSIVE FOREIGN INVESTMENT

PROXIMTY TO OTHER METROS

Irvine Spectrum Skyline

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ECONOMY• The local economy contains an employment base of more than 1.2

million workers.• The aerospace and technology industries make up a significant por-

tion of the economy, while homeland security and defense contracts support smaller electronics firms.

• Research and development at private and educational institutions play a vital role in the growing high-tech base that includes companies such as Allergan and Google.

• Travel and tourism draws many visitors and supports the retail and hospitality sectors. The area contains beaches and attractions such as Disneyland and Knott’s Berry Farm.

MAJOR EMPLOYERSUniversity of California, Irvine

The Walt Disney Co.

St. Joseph Health Systems

Boeing Co.

Bank of America Corp.

Memorial Care Health System

Cedar Fair LP

Kaiser Permanente

Target Corp.

Hoag Memorial Hospital Presbyterian

ECONOMIC GROWTH

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DEMOGRAPHICS

• The local population will expand by more than 72,600 residents over the next five years and during this time, nearly 38,100 households will be added.

• Due in part to high home prices, the homeownership rate of 57 percent is below the national rate of 64 percent.

• Roughly 38 percent of the population age 25 and older have attained a bachelor’s degree, with 13 percent also holding a graduate or professional degree.

2017 POPULATION BY AGE

QUALITY OF LIFE

6% 19% 7% 28% 27% 14%

0-4 Years 5-19 Years 20-24 Years 25-44 Years 45-64 Years 65+ Years

SPORTS

EDUCATION

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SPORTS

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ARTS & ENTERTAINMENT

From fishing to yatching, water sports of every kind abound at the beaches, har-bors, and marinas on the Orange County coast. Many of its beaches are famous for surfing; the town of Huntington Beach is known worldwide as “Surf City, USA”.The weather is also perfect for golfing, hiking, and bikinig. Orange County has a world-class selection of entertainment, restaurants, and shopping. The area boasts huge attractions such as Disneyland and Knott’s Berry Farm. Orange County also hosts major sports teams in baseball, hockey, and soccer. Educa-tional institutions of higher learning include two public universities: California State University, Fullerton and University of California, Irvine.

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UNIT TYPE 1 MILE 3 MILES 5 MILES

2021 ProjectionTotal Population 25,833 140,950 428,231

2016 EstimateTotal Population 25,674 139,173 421,735

2010 CensusTotal Population 24,606 134,575 407,806

2000 CensusTotal Population 24,296 130,048 392,881

Daytime PopulationsTotal Population 19,634 111,468 386,708

HOUSEHOLDS 1 MILE 3 MILES 5 MILES

2021 ProjectionTotal Households 8,247 46,423 136,838

2016 EstimateTotal Households Average (Mean) Household Size

8,2013.11

45,8273.01

134,6103.08

2010 CensusTotal Households 7,781 43,979 129,087

2000 CensusTotal Households 7,945 43,524 126,423

Growth 2015 - 2020 0.56% 1.30% 1.66%

HOUSING UNITS 1 MILE 3 MILES 5 MILES

Occupied Units

2021 Projection 8,247 46,423 136,838

2016 Estimate 8,319 46,242 135,877

Owner Occupied 4,620 31,693 88,672

Renter Occupied 3,581 14,135 45,938

Vacant 118 415 1,267

Persons In Units

2016 Estimate Total Occupied Units 8,201 45,827 134,610

1 Person Units 19.95% 19.51% 18.47%

2 Person Units 25.96% 28.45% 27.46%

3 Person Units 16.44% 17.28% 17.78%

4 Person Units 17.25% 17.06% 17.82%

5 Person Units 10.94% 9.65% 9.70%

6+ Person Units 9.46% 8.04% 8.76%

HOUSEHOLDS BY INCOME 1 MILE 3 MILES 5 MILES

2016 Estimate

$200,000 or More 5.48% 8.26% 7.16%

$150,000 - $199,000 5.86% 8.27% 8.20%

$100,000 - $149,000 15.42% 19.13% 18.28%

$75,000 - $99,999 14.05% 13.80% 14.44%

$50,000 - $74,999 19.15% 17.32% 18.09%

$35,000 - $49,999 12.86% 11.07% 11.18%

$25,000 - $34,999 10.59% 7.31% 7.29%

$15,000 - $24,999 9.17% 7.74% 7.62%

Under - $15,000 7.40% 7.11% 7.74%

Average Household Income $85,325 $103,153 $98,126

Median Household Income $60,421 $74,131 $72,178

Per Capita Income $27,527 $34,117 $31,602

HOUSEHOLDS BY INCOME 1 MILE 3 MILES 5 MILES

Population By Age

2016 Estimate Total Population 25,674 139,173 421,735

Under 20 27.88% 25.18% 25.04%

20 - 34 Years 21.71% 19.95% 20.86%

35 - 39 Years 6.24% 5.89% 6.15%

40 - 49 Years 14.03% 13.66% 13.96%

50 - 64 Years 17.57% 19.71% 19.54%

Age 65+ 12.56% 15.60% 14.49%

Median Age 35.32 39.15 38.38

Population 25+ by Education Level

2016 Estimate Population Age 25+ 16,610 94,177 283,901

Elementary (0-8) 8.42% 5.23% 5.53%

Some High School (9-11) 8.17% 6.74% 7.19%

High School Graduate (12) 25.76% 22.63% 21.88%

Some College (13-15) 25.86% 25.44% 23.69%

Associate Degree Only 5.93% 8.39% 8.33%

Bachelors Degree Only 16.65% 20.17% 21.50%

Graduate Degree 6.89% 10.04% 10.29%

Population by Gender

2016 Estimate Total Population 25,674 139,173 421,735

Male Population 49.36% 48.63% 48.75%

Female Population 50.64% 51.37% 51.25%

EXCLUSIVELYLISTED BY:

Greg BassirpouFirst Vice President InvestmentsDirector, National Multi-Housing GroupNewport Beach OfficeTel: (949) 419-3234Cell: (714) 608-3255greg.bassirpou@marcusmillichap.comLicense: CA 01365951