ERIC KATZ(408) 438-0969Eric.Katz@Colliers.comCA Lic. 01900078

BAY AREAMULTIFAMILY TEAM

ERIC KATZVice President(408) 438-0969Eric.Katz@Colliers.comCA Lic. 01900078

COLLIERS INTERNATIONAL | MULTIFAMILY TEAMTEDDY ENFANTINOAssociate(408) 903-3982Teddy.Enfantino@Colliers.comCA Lic. 01957609

1050 CLYDE AVE, SANTA CLARA 95054

1050 CLYDE AVESANTA CLARA, CA

PROPERTY DETAILSLOCATION OVERVIEWFINANCIALSSALES COMPSSALES COMPS ANALYSIS

I.II.III.IV.V.

TABLE OF CONTENTS

INVESTMENT OVERVIEW FOR 1050 CLYDE AVENUE

EXECUTIVE SUMMARYThe Multifamily Team of Colliers International is pleased to present the opportunity to acquire 1050 Clyde Avenue, a 4-plex apartment building in the highly desirable Rivermark neighborhood of Santa Clara. This property is also owned by the same owner as 1080 Clyde an can be purchased separately or together. Constructed in 1963, the property consists of two (2) three-bedroom/two-bathroom units and two (2) two-bedroom/one-bathroom units on a 8,235 square foot lot. The building is composed of a wood-frame construction with a single-ply flat roof and has a gross-livable area of 4,388 square feet. The South Bay is home to some of the largest employers in the country including: Adobe, Advanced Micro Devices, Intel Corp, EBay, Cisco Systems and many more. The investment appeal of this asset is driven by Santa Clara’s strong employment fundamentals and low vacancy levels.

ADDRESS 1050 Clyde Avenue

CITY Santa Clara

YEAR BUILT 1963

UNITS 4

BUILDING SF 4,388

LOT SF 8,235

OCCUPANCY 100%

APN # 101-22-107

KEY DETAILSPRICE $2M

CURRENT CAP RATE 5.3%

PRO FORMA CAP 5.8%

CURRENT GRM 13.6

PRO FORMA GRM 12.8

PRICE/UNIT $500K

PRICE/BUILDING SF $456

KEY METRICSNET OPERATING INCOME $106K

LOAN AMOUNT $80K

LOAN-TO-VALUE (LTV%) 70%

DEBT COVERAGE RATIO 1.4

ANNUAL DEBT SERVICE1 $75K

NET CASH FLOW AFTER DEBT $30K

TOTAL RETURN $57K

TOTAL RETURN (%) 9.6%1Debt Service calculation assumes 3.5% Interest Rate and 5 year fixed amortization schedule

KEY FINANCIALS

DETAILSPROPERTYI.

A. PROPERTY DETAILS

B. PROPERTY AERIAL

C. POINTS OF INTEREST

D. PROPERTY PHOTOS

PROPERTY DESCRIPTIONROOFPitched Composition;Wood Frame

COOLINGWindows;Air Conditioning

HEATINGWall Furnace;Gas (Natural)

LAUNDRYOn-Site Laundry; Coin-Operated

PARKING4 Carport Spaces; Street Parking

WINDOWSDouble-pane

HOT WATERCentral Water Heaters

PROPERTY DESCRIPTION AERIAL VIEW

1050 Clyde Ave

LAFA

YETT

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HAIG

ST

LOCH

LOM

OND

ST

CLYDE AVE

LEITH AVE

LAW

RENC

E EX

PY

SAN CARLOS STSTEVENS CREEK BLVD

SAN

THOM

AS E

XPY

EL CAMINO REAL

MISSION COLLEGE

DE ANZA COLLEGE

PETERSON MIDDLE SCHOOL

WILCOX HIGH SCHOOL

SUNNYVALE CALTRAIN STATION

LAWRENCE CALTRAIN STATION

SANTA CLARA CALTRAIN STATION

COLLEGE PARK CALTRAIN STATION

SAN JOSE DIRIDON CALTRAIN STATION880

880

280

280

101

101

1050 Clyde Ave

POINTS OF INTEREST

POINTS OF INTEREST PROPERTY PHOTOS

OVERVIEWLOCATIONII.

A. REGIONAL AND LOCAL OVERVIEW

B. CITY OVERVIEW

C. CITY DEMOGRAPHICS

D. CITY DEVELOPMENTS

REGIONAL & LOCAL OVERVIEW

Home to 29 Fortune 500 companies, and 32 companies which have been included on Inc. 500’s list of fastest growing private companies.

Over 7.34 million residents and the highest percentage of graduate and professional degrees in the nation.

A Superb quality of life with a Mediterranean climate, world-class cultural resources, and the stunning natural beauty of the Pacific Ocean and the Sierra Nevada Mountains.

The highest concentration of venture capital firms in the world which have invested an average of $10 billion annually in 1,100 local area firms.

Proximity to outstanding education and research institutions at Stanford University, UC Berkeley, USF, UC Davis, Santa Clara University, and San Jose State University.

SANTA CLARAO V E R V I EW

The N. Winchester Boulevard Apartments are located in Santa Clara, approximately 45 miles southeast of San Francisco. Santa Clara is home to 116,748 residents and is the ninth most populous city in the San Francisco Bay Area.Santa Clara, also known as “Mission City” has transformed from an agricultural powerhouse shipping fruits and vegetables throughout the nation, to the birthplace of technology inventions that changed the world.Santa Clara is located in the center of the Silicon Valley and is home to some of the region’s notable technology companies including Intel, Agilent, Applied Materials and Texas Instruments.Santa Clara is the new home of the five-time Super Bowl Champion San Francisco 49ers. Levi’s Stadium is one of the newest additions to Santa Clara’s world class features. The $1.2 billion facility had its ribbon cutting ceremonies in July of 2014.

MEDIAN PROPERTY VALUE

$831K13.2% GROWTH

NUMBER OF EMPLOYEES

66K3.15% GROWTH

POPULATION ESTIMATE

124K1.56% GROWTH

MEDIAN HOUSEHOLD INCOME

$106K5.93% GROWTH

SANTA CLARAD EMO G R A P H I C S

FINANCIALSIII.A. RENT ROLL

B. UNIT MIX

C. FINANCIAL OVERVIEW

RENT ROLLUNIT

#UNIT TYPE SQUARE FEET CURRENT

RENTCURRENT RENT/SF

MARKET RENT

MARKET RENT/SF

1 3BD/2BA 1200 $3,400 $2.83 $3,700 $3.08

2 2BD/1BA 994 $2,716 $2.73 $2,800 $2.82

3 3BD/2BA 1200 $3,700 $3.08 $3,700 $3.08

4 2BD/1BA 994 $2,400 $2.41 $2,800 $2.82

4 UNITS ALL 4,388 $12,216 $2.78 $13,000 $2.96

UNIT TYPE % OF UNITS # OF UNITS AVG SQFT AVG CURRENT RENT

AVG MARKET RENT

2BD/1BA 50% 2 994 $2,558 $2,800

3BD/2BA 50% 2 1200 $3,550 $3,800

Grand Total 50% 2 994 $2,558 $2,800

UNIT MIX

UNIT MIX FINANCIAL OVERVIEW

1Debt Service calculation assumes Loan amount of $1.4M at 3.5% Interest Rate and 5 year fixed Amortization schedule.2Implied Debt Coverage Ratio of 1.4 and 70% Loan to Value.

FINANCIAL STATEMENT CURRENT PER UNIT PER MONTH PRO FORMA PER UNIT PER MONTH NOTES

REVENUES

Gross Potential Rent $146,592 $36,648 $12,216 $156,000 $39,000 $13,000

Laundry Income $3,048 $762 $254 $3,048 $762 $254 Actual 2017

Gross Potential Income $149,640 $37,410 $12,470 $159,048 $39,762 $13,254

Vacancy $4,398 $1,099 $366 $4,680 $1,170 $390 Estimate 3% Vacancy

Effective Gross Income $145,242 $36,311 $12,104 $154,368 $38,592 $12,864

EXPENSES

Real Estate Taxes $23,024 $5,756 $1,919 $23,024 $5,756 $1,919 Estimate - Based on List Price

Special Taxes and Assessments $172 $43 $14 $172 $43 $14 Actual 2019

Insurance $1,309 $327 $109 $1,309 $327 $109 Actual 2017

Utilities $7,829 $7,829 $652 $7,829 $7,829 $652 Actual 2017

Landscaping $1,200 $300 $100 $1,200 $300 $100 Actual 2017

Natural Gas $2,628 $657 $219 $2,628 $657 $219 Actual 2017

Laundry Rental $565 $141 $47 $565 $141 $47 Actual 2017

Licenses and Permits $158 $40 $13 $158 $40 $13 Actual 2017

Repairs & Maintenance $2,000 $500 $167 $2,000 $500 $167 Estimate - $500/unit/year

Total Expenses $38,885 $9,721.28 $3,240 $38,885 $9,721 $3,240

Expenses / Sqft $9 $9

Expense Ratio (%EGI) 27% 25%

PROFITS AND CASH FLOW

Net Operating Income (NOI) $106,357 $26,589 $8,863 $115,483 $28,871 $9,624

Debt Service1 $75,440 $75,440

Net Cash Flow after Debt Service2 $30,918 $2,576 $40,043 $3,337

Net Cash Flow after Debt Service (%) 5.2% 6.7%

Principal Reduction $26,868 $26,868

Total Return2 $57,785 $4,815 $66,911 $5,576

Total Return (%) 9.6% 11.2%

COMPSSALESIV.

A. MAP

B. KEY DETAILS

C. KEY METRICS

MAP OF SALES COMPS

# ADDRESS CITY

1 2860 Malabar Avenue Santa Clara

2 2013 Town & Country Lane Santa Clara

3 235 Washington Street Santa Clara

4 480 California Street Santa Clara

5 720 Harvard Avenue Santa Clara

6 1040 Clyde Avenue Santa Clara

1050 Clyde Avenue

1

2

34

5

6

KEY DETAILS FOR SALES COMPSPHOTO ADDRESS CITY PRICE UNITS UNIT MIX BUILDING SF LAND SF YEAR BUILT CLOSE OF ESCROW

2860 Malabar Ave Santa Clara, CA 95051 $2,050,000 4 4 2BD/1BA 3,264 6,480 1962 3/39/2019

2013 Town & Country Ln

Santa Clara, CA 95050 $2,250,000 4

1 3BD/2BA; 2 2BD/1BA: 1

1BD1/BA3,717 7,967 1963 5/31/2018

235 Washington St Santa Clara, CA 95050 $2,300,063 4 1 3BD/2BA; 3

2BD/1BA 3,872 5,985 1973 10/19/2018

480 California St Santa Clara, CA 95050 $2,025,000 4 4 2BD/1BA 4,388 8,505 1953 Active

720 Harvard Ave Santa Clara, CA 95050 $2,200,000 4 1 3BD/2BA; 3

2BD/1BA 3,673 8,682 1968 7/31/2019

1040 Clyde Avenue

Santa Clara, 95050 $1,900,000 4 2 3BD/2BA,

2 2BD/1BA 4,388 8,505 1963 5/12/17

1

2

3

4

5

6

KEY DETAILS FOR SALES COMPS KEY METRICS FOR SALES COMPSPHOTO ADDRESS CITY CAP RATE GRM PRICE/UNIT PRICE/SF PRICE/LSF NOTES

2860 Malabar Ave Santa Clara, CA 95051 3.4% 21.6 $512,500 $628 $316 N/A

2013 Town & Country Ln

Santa Clara, CA 95050 2.8% 21.9 $562,500 $605 $282 N/A

235 Washington St Santa Clara, CA 95050 2.9% 27.4 $575,016 $594 $384 N/A

480 California St Santa Clara, CA 95050 3.7% 18.1 $506,250 $461 $238 N/A

720 Harvard Ave Santa Clara, CA 95050 4.0% 19.9 $550,000 $599 $253 N/A

1040 Clyde Avenue

Santa Clara, 95050 3.50% 19.10 $475,000 $433 $223 N/A

1

2

3

4

5

6

ANALYSISSALES COMPSV.

A. CAP RATE

B. PRICE PER UNIT

C. GROSS RENT MULTIPLE

D. PRICE PER SQUARE FOOT

E. PRICE PER LAND SQUARE FOOT

SALES COMPS ANALYSISCAP RATE

AVERAGE: 3.4%

SALES COMPS ANALYSISGRM

AVERAGE: 21.4

SALES COMPS ANALYSIS SALES COMPS ANALYSISPRICE PER UNIT

AVERAGE: $530K

SALES COMPS ANALYSISPRICE / SQ FT

AVERAGE: $572

SALES COMPS ANALYSISPRICE / LAND SQ FT

AVERAGE: $283

SALES COMPS ANALYSIS

This Confidential Offering Memorandum (the “Memorandum”) has been prepared and presented to the recipient (the “Recipient”) by Colliers International (“Colliers”) as part of Colliers’ efforts to market the real property for sale. Colliers is the exclusive agent and broker for the owner(s) of the Property (the “Owner”). Colliers is providing this Memorandum and the material contained in it to the Recipient solely to assist the Recipient in determining whether the Recipient is interested in potentially purchasing all or part of the Property. Colliers also is providing this Memorandum and the material in it to the Recipient with the understanding that the Recipient will independently investigate those matters that it deems necessary and appropriate to evaluate the Property and that the Recipient will rely only on its own investigation, and not on Colliers, the Owner or this Memorandum, in determining whether to purchase the Property. The Recipient’s use of this Memorandum and the material in it is strictly governed by the terms and conditions of the Registration and Confidentiality Agreement that the Recipient previously executed and delivered to Colliers.

PLEASE NOTE THE FOLLOWING: Colliers, the Owner and their respective agents, employees, representatives, property managers, officers, directors, shareholders, members, managers, partners, joint venturers, corporate parents or controlling entities, subsidiaries, affiliates, assigns and predecessors and successors-in-interest make no representations or warranties about the accuracy, correctness or completeness of the information contained in this Memorandum. The Recipient is urged not to rely on the information contained in this Memorandum and to make an independent investigation of all matters relating to the Property.

This Memorandum includes statements and estimates provided by or to Colliers and/or the Owner regarding the Property. Those statements and estimates may or may not be accurate, correct or complete. Nothing contained in this Memorandum should be construed as a representation or warranty about the accuracy, correctness or completeness of such statements and estimates.

Further, nothing contained in this Memorandum should be construed as representation or warranty about any aspect of the Property, including, without limitation, the Property’s (1) past, current or future performance, income, uses or occupancy, (2) past, current or prospective tenants, (3) physical condition, (4) compliance or non-compliance with any permit, license, law, regulation, rule, guideline or ordinance, or (5) appropriateness for any particular purpose, investment, use or occupancy. Again, the Recipient is urged not to rely on this Memorandum and the statements and estimates in it and to make an independent investigation regarding the Property and the statements and estimates contained herein.

This Memorandum may include statements regarding, references to, or summaries of, the nature, scope or content of contracts and/or other documents relating to the Property. Those statements, references or summaries may or may not be accurate, correct or complete. Additionally, Colliers may not have referenced or included summaries of each and every contract and/or other document that the Recipient might determine is relevant to its evaluation of the Property. Nothing contained in this Memorandum should be construed as a representation or warranty about the accuracy, correctness or completeness of such statements, representations or summaries. On request and as available, and subject to the Owner’s consent, Colliers will provide the Recipient with copies of all referenced contracts and other documents.

Colliers assumes no obligation to supplement or modify the information contained in this Memorandum to reflect events or conditions occurring on or after the date of its preparation of this Memorandum. More detailed information regarding the anticipated terms, conditions and timing of any offering by the Owner relating to the Property will be provided in due course by separate communication. Colliers and/or the Owner reserve the right to engage at any time in discussions or negotiations with one or more recipients of this Memorandum and/or other prospective purchasers of the Property without notice or other obligation to the Recipient.

CONFIDENTIALITY AGREEMENT

1050 Clyde Ave

ERIC KATZ(408) 438-0969Eric.Katz@Colliers.comCA Lic. 01900078

TEDDY ENFANTINO(408) 903-3982Teddy.Enfantino@Colliers.comCA Lic. 01957609

LAFA

YETT

E ST

MONTAGUE EXPY

CLYDE AVE

ERIC KATZVice President(408) 438-0969Eric.Katz@Colliers.comCA Lic. 01900078

COLLIERS INTERNATIONAL | MULTIFAMILY TEAMTEDDY ENFANTINOAssociate(408) 903-3982Teddy.Enfantino@Colliers.comCA Lic. 01957609