NEWMAN STREET APARTMENTS5582 Newman Street,

Cypress, CA 90630A 5-Unit Multifamily Community

EXCLUSIVELYLISTED BY:

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

C O N F I D E N T I A L I T Y

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 information 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 business 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 ZAB0100209

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.

SPECIAL COVID-19 NOTICEAll potential buyers are strongly advised to take advantage of their opportunities and obligations to conduct thorough due diligence and seek expert opinions as they may deem necessary, especially given the unpredictable changes resulting from the continuing COVID-19 pandemic. Marcus & Millichap has not been retained to perform, and cannot conduct, due diligence on behalf of any prospective purchaser. Marcus & Millichap’s principal expertise is in marketing investment properties and acting as intermediaries between buyers and sellers. Marcus & Millichap and its investment professionals cannot and will not act as lawyers, accountants, contractors, or engineers. All potential buyers are admonished and advised to engage other professionals on legal issues, tax, regulatory, financial, and accounting matters, and for questions involving the property’s physical condition or financial outlook. Projections and pro forma financial statements are not guarantees and, given the potential volatility created by COVID-19, all potential buyers should be comfortable with and rely

solely on their own projections, analyses, and decision-making.

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

TABLE OF CONTENTS

04 PROPERTY DESCRIPTION

12 FINANCIAL ANALYSIS

14 MARKET COMPARABLES

16 MARKET OVERVIEW

4 PROPERTY DESCRIPTION

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The Newman Street Apartments is a five-unit apartment building located in the desirable City of Cypress, CA within the greater Orange County area. The subject property is located on a quiet residential street of predominantly single-family homes and is walking distance to Cypress College, a well-known community college.

Built in 1971, the property offers an attractive unit mix of single story cottages consisting of (1) three-bedroom/ one-bathroom unit, (3) two-bedroom/ one-bathroom units, and (1) one-bedroom/ one-bathroom unit totaling 4,887 square feet, situated over a large 17,815 square foot lot. The subject property has recently gone through an extensive remodel of the interiors and exterior. Some interior upgrades include but are not limited to new kitchens, new appliances, new flooring, new windows, new bathrooms, and new garage doors. Tenant amenities include large backyards, ample on-site parking including enclosed garages, and washer/dryer hookups inside units.

This offering represents a rare opportunity for an investor to achieve a 4.8% CAP Rate / 6.2% total return on a stable, renovated, and well-located investment property in the solid rental market of Cypress, California.

VITAL DATAPrice $1,899,990

Down Payment 40% / $759,996

Loan Amount $1,139,994

Loan Type New

Interest Rate / Amortization 3.95% / 30 Years

Price/Unit $379,998

Price/SF $389

Number of Units 5

Rentable SF 4,887 SF

Year Built/Renovated 1971

Lot Size 17,815 SF

Parcel Number 244-511-46

FINANCIAL HIGHLIGHTSCURRENT MARKET

CAP Rate 4.81% 5.33%

GIM 14.94 13.83

Net Operating Income $91,375 $101,269

Net Cash Flow After Debt Service 3.48% / $26,459 4.48% / $34,025

Total Return 6.15% / $46,709 7.25% / $55,090

UNIT MIXNUMBER OF UNITS UNIT TYPE APPROX. SF

1 3 Bed / 1 Bath N/A

3 2 Bed / 1 Bath N/A

1 1 Bed / 1 Bath N/A

5 4,887

5PROPERTY DESCRIPTION

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PROPERTY HIGHLIGHTS

• All Single-Story Cottages Built in 1971• Recent Extensive Renovations / Upgrades of Interiors

& Exterior• Close to Cypress College, Retail, Employment, &

Entertainment• Desirable Unit Mix• Low Expense Building / Separately Metered for Gas &

Electric• Upside in Rents• Large Yards, Enclosed Garages, & Washer/Dryer

Hookups Inside Units• 4.8% CAP Rate and 6.2% Total Return on Current

Income• Large 18,000 Square Foot Lot

AREA HIGHLIGHTS

STABLE/LOW-VELOCITY TRADE AREA

Cypress is a smaller community in northwest Orange County with a Median Household Income exceeding $92,000 and a Median Property Value of more than $576,000.

WIDELY RECOGNIZED EDUCATION SYSTEM

Cypress is home to an award-winning public school system which has a mission of inspiring and empowering “every student” along with the highly regarded Cypress College.

STRONG AND STABILIZED TENANT BASE

This property offers a very strong, stabilized tenant base with an opportunity to add additional value in current rents.

6 PROPERTY DESCRIPTION

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SUBJECT PROPERTYWALKER ST.

OXFORD ACADEMYCYPRESS CIVIC CENTER

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SUBJECT PROPERTY

CYPRESS COLLEGE

WISDOM MISSION SCHOOL

USPS / THE HOME DEPOT

12 FINANCIAL ANALYSIS

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FINANCIAL SUMMARYPrice $1,899,990Down Payment 40% / $759,996Loan Amount $1,139,994Interest Rate / Amortization 3.95% / 30 YearsLoan Term 30 Years / 5 Years FixedPrice/Unit $379,998Price/SF $389

RETURN SUMMARYCURRENT MARKET

CAP Rate 4.81% 5.21%GIM 14.94 14.07Cash-on-Cash 3.48% 4.48%Total Return 6.15% 7.25%

OPERATING INCOME - ANNUALIZEDCURRENT MARKET

Gross Scheduled Rent $127,200 $135,000Total Other Income $0 $0Gross Potential Income $127,200 $135,000Less: Vacancy/Concessions 3.00% / $3,816 3.00% / $4,050Effective Gross Income $123,384 $130,950Less: Expenses 25.94% / $32,009 24.44% / $32,009NET OPERATING INCOME $91,375 $98,941Cash Flow $91,375 $98,941Debt Service $64,916 $64,916NET CASH FLOW AFTER DEBT SERVICE 3.48% / $26,459 4.48% / $34,025Principal Reduction $20,251 $21,065TOTAL RETURN 6.15% / $46,709 7.25% / $55,090

OPERATING EXPENSES - ANNUALIZEDCURRENT MARKET

Property Taxes & Assessments $22,063 $22,063Insurance $1,746 $1,746Utilities $3,000 $3,000Repairs & Maintenance $2,500 $2,500Landscaping $1,200 $1,200Operating Reserves $1,500 $1,500TOTAL EXPENSES $32,009 $32,009EXPENSES/UNIT $6,402 $6,402

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

3 Bedroom / 1 Bath 1 N/A $2,550 $2,550 $2,650 $2,6502 Bedroom / 1 Bath 3 N/A $2,000 - $2,150 $6,250 $2,200 $6,6001 Bedroom / 1 Bath 1 N/A $1,800 $1,800 $2,000 $2,000TOTAL FIGURES 5 4,887 $10,600 $11,250GROSS ANNUALIZED RENTS $127,200 $135,000

BUILDING SUMMARYProperty Address 5582 Newman St., Cypress, CA 90630Number of Units 5Year Built/Renovated 1971Rentable SF 4,887 SFLot Size 17,815 SFParcel Number 244-511-06Zoning RS 6000-FA

13FINANCIAL ANALYSIS

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UNIT UNIT TYPECURRENT

RENT / MONTHMARKET

RENT / MONTHUnit 1 3 Bedroom / 1 Bath $2,550 $2,650

Unit 2 2 Bedroom / 1 Bath $2,000 $2,200

Unit 3 2 Bedroom / 1 Bath $2,150 $2,200

Unit 4 2 Bedroom / 1 Bath $2,100 $2,200

Unit 5 1 Bedroom / 1 Bath $1,800 $2,000

$0.00$0.10$0.20$0.30$0.40$0.50$0.60$0.70$0.80$0.90$1.00

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

0 0 0

1 Bath 1 Bath 1 Bath

3 Bed 2 Bed 1 Bed

Unit Rents

Rental Range Rent/SF

No. of Units

3 Bed 1 Bath 0 2 Bed 1 Bath 0 1 Bed 1 Bath 0

UNIT RENTUNIT DISTRIBUTION

14 MARKET COMPARABLES

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13/31/2020 $2,600,000 $520,000 $490 4.15% 1963

5 Units - Featuring (1) 3 Bed/ 2 Bath, (1) 3 Bed/ 1 Bath, and (3) 2 Bed/ 1 Bath unit(s).2014 Wallace Ave.

Costa Mesa, CA 92627

21/10/2020 $1,700,000 $283,333 $501 4.21% 1908

6 Units - Featuring (1) 2 Bed/ 2 Bath, (1) 2 Bed/ 1 Bath, (3) 1 Bed/ 1 Bath, and (1) Studio unit(s).306 E. Amerige Ave.

Fullerton, CA 92832

36/14/2019 $1,685,000 $280,833 $318 4.22% 1970

6 Units - Featuring 100% 2 Bed/ 2 Bath unit(s).3147 W. Lanerose Dr.

Anaheim, CA 92804

412/23/2019 $1,950,000 $325,000 $378 4.50% 1964

6 Units - Featuring (1) 3 Bed/ 2 Bath, (1) 2 Bed/ 2 Bath, (1) 2 Bed/ 1.5 Bath, and (3) 1 Bed/ Bath unit(s).517 Cypress Ave.

Santa Ana, CA 92701

PROPERTY COESALE

PRICEPRICE/

UNITPRICE/

SFCAP

RATEYEAR BUILT

Subject Property - $1,899,990 $379,998 $389 4.81% 1971

5 Units - Featuring (1) 3 Bed/ 1 Bath, (3) 2 Bed/ 1 Bath, and (1) 1 Bed/ 1 Bath unit(s). 5582 Newman St.

Cypress, CA 90630

16 MARKET OVERVIEW

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RENTAL MARKET

The Cypress rental market is a stable, low-velocity market 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 strong.

ECONOMIC DRIVERS

Cypress consists of major employers and retailers and demonstrates a moderate growth in population. Some of the most notable employers include, but are not limited to: UnitedHealth Group, Siemens, and Cypress College. Additionally, Real Mex Restaurants and Mitsubishi Motors North America are both headquartered in Cypress.

Apart from its notable employers, Cypress offers residents a family-oriented community boasting a unique mix of retail shops, restaurants, and a touch of history. Once known as the “Dairy City”, Cypress is now a fully developed urban community in northwest Orange County, striving to honor its past and embrace sustainable growth for families and businesses to prosper.

Los Alamitos Race Course (Cypress)

Cypress Civic Center

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Cypress College

DEMOGRAPHICS

Spanning across 6.62 square miles and boasting a population of almost 49,000 residents, Cypress is one of the smaller communities in northwest Orange County California with a Median Household Income exceeding $92,000 and a Median Property Value of $576,000.

Additionally, Cypress is anticipated to continually experience growth as consumer spending continues to increase and employment rates continue to improve.

18 MARKET OVERVIEW

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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

19MARKET OVERVIEW

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

million jobs.• The aerospace and technology industries make up a significant portion

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

20 MARKET OVERVIEW

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QUALITY OF LIFE

SPORTS

EDUCATION

ARTS & ENTERTAINMENT

SPORTS

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ARTS & ENTERTAINMENT

From fishing to yatching, water sports of every kind abound at the beaches, harbors, 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. Educational institutions of higher learning include two public universities: California State University, Fullerton and University of California, Irvine.

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

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

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

21MARKET OVERVIEW

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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