Property Report - Lee & AssociatesProperty Report Murrieta, CA Powered by Reis, inc. Apartment...

Property Report

Murrieta, CA

Powered by Reis, inc.

Apartment

ContentsRent Comparables 2Sales Comparables 11New Construction Comparables 25

Metro Analysis 37Submarket Analysis 29

Property Report

Murrieta, CA


Apartment

Rent Comparables

Section 1 - Subject Property

Subject Property Location

Address

City Murrieta

State CA

Zip

Metro San Bernardino/Riverside

Submarket SW Riverside Cty

Latitude 33.55843

Longitude -117.21179

Subject Property Statistics

Property Type Apartment

Year Built

Size (units)

Subject Property Amenities

Unit None Reported

Community None Reported

Section 2 - Comparable Group Market Summary

Comparable Group Summary Statistics

Low Mean Median High

Current Asking Rent/Unit $971 $1,112 $1,137 $1,353

Current Vacancy Rate 0.3% 3.1% 2.2% 8.3%

Property Size (units) 180 320 319 460

Year Built 1984 1990 1989 1999

Studio 1BR 2BR 3BR

Current Asking Rent/Unit N/A $995 $1,158 $1,455

Unit Size (SF) N/A 662 944 1,063

Units N/A 108 202 10

Current Asking Rent/SF N/A $1.51 $1.22 $1.37

As of 1/31/14

Section 3 - Lease Terms

Submarket Expense Ratio 36.20%

Submarket Free Rent (Mo./year) 0.27

As of 1/31/14

Rent Comparables (Monthly Data)Apartment - January, 2014

Metro: San Bernardino/RiversidePrepared for Golden Eagle Multi Family Properties, LLCClearly Objective.

Copyright 2014Reis Services, LLC

This report has been generated for the exclusive use of James C. Kieckhafer of NonSubscriberReisReportsThe use, distribution and display of this report and any of the information contained herein are subject to the Terms and Conditions at ReisReports.com.

Section 4 - Rent Growth Comparisons

Asking Rent Growth Rates

Quarterly Annualized

2013Q4 2013Q3 YTD 1 Year 3 Year 5 Year

Comparable Group* 0.2% 1.9% 1.4% 3.1% 2.2% 0.6%

SW Riverside Cty 0.5% 0.9% 1.0% 1.6% 1.7% 1.4%

San Bernardino/Riverside 0.6% 0.5% 0.8% 1.5% 2.1% 0.7%

1. Quarter ending 12/31/13 2. Quarter ending 9/30/13 3. Avg over period ending 1/31/14 4. Avg over period ending 12/31/13*Historical trends include only properties in the Comp Group that have at least five full years of history;

aggregated data on rents and vacancies displayed in other tables may therefore not match precisely.

Section 5 - Vacancy Rate Comparisons


2013Q4 2013Q3 YTD 1 Year 3 Year 5 Year

Comparable Group* 3.3% 3.8% 3.1% 5.2% 6.1% 6.0%

SW Riverside Cty 3.0% 3.5% 2.9% 3.7% 5.0% 6.3%


1. Quarter ending 12/31/13 2. Quarter ending 9/30/13 3. Avg over period ending 1/31/14 4. Avg over period ending 12/31/13*Historical trends include only properties in the Comp Group that have at least five full years of history;

aggregated data on rents and vacancies displayed in other tables may therefore not match precisely.

Section 6 - Comparable Group Growth Trends

Year Month /QtrAsking Rent(per unit)

Asking RentPct Change

VacancyRate

VacancyChange(BPS)

2009 4 $1,064 -1.2% 5.8% 20

2010 4 $1,037 -2.5% 8.0% 220

2011 4 $1,062 2.4% 6.1% -190

2012 4 $1,074 1.1% 7.1% 100

2012 4 $1,074 0.5% 7.1% 120

2013 1 $1,086 1.1% 5.5% -160

2013 2 $1,084 -0.2% 4.6% -90

2013 3 $1,105 1.9% 3.8% -80

2013 4 $1,107 0.2% 3.3% -50

2014 Jan $1,112 0.5% 3.1% -20

Historical trends include only properties in the Comp Group that have at least five full years of history;aggregated data on rents and vacancies displayed in other tables may therefore not match precisely.





Section 7 - Comparable Group Locations





Section 8 - Comparable Group Listing

1

Name The Arbors at California Oaks Current Asking Rent/ Unit $1,073

Address 24375 Jackson Ave Current Vacancy Rate 3.9%

City Murrieta Distance from Subject (miles) 1.05

State CA Property Size ( Units) 460

ZIP 92562 Floors 3

County Riverside Year Built 1989

Submarket SW Riverside County Class A

Data As Of 01/31/14

Studio 1BR 2BR 3BR

Current Asking Rent/Unit N/A $949 $1,234 N/A

Unit Size (SF) N/A 580 939 N/A

Units N/A 260 200 N/A

Current Asking Rent/SF N/A $1.64 $1.31 N/A

Unit Amenities Dishwasher

Community Amenities Health Club, Tennis, Pool, Shared Laundry

2

Name The Waterstone at Murrieta Current Asking Rent/ Unit $996

Address 24850 Hancock Ave Current Vacancy Rate 1.7%



ZIP 92562 Floors 2


Submarket SW Riverside County Class BC

Data As Of 01/31/14

Studio 1BR 2BR 3BR






Community Amenities Business Center, Pool, Pet Friendly, Health Club





3

Name Gables Alta Murrieta Current Asking Rent/ Unit $1,302

Address 39930 Whitewood Rd Current Vacancy Rate 2.2%



ZIP 92563 Floors 2



Data As Of 01/31/14

Studio 1BR 2BR 3BR

Current Asking Rent/Unit N/A $1,088 $1,323 N/A

Unit Size (SF) N/A 710 1,019 N/A



Unit Amenities Dishwasher, Washer Dryer, Internet, Fireplace

Community AmenitiesBusiness Center, Tennis, Pool, Pet Friendly, Parking Lot,Health Club, Parking Garage

4

Name Acacia Park Current Asking Rent/ Unit $1,178

Address 29605 Solana Way Current Vacancy Rate 2.2%

City Temecula Distance from Subject (miles) 4.55


ZIP 92591 Floors 2



Data As Of 01/31/14

Studio 1BR 2BR 3BR

Current Asking Rent/Unit N/A $1,054 $1,260 N/A

Unit Size (SF) N/A 720 1,032 N/A



Unit Amenities Dishwasher, Fireplace

Community Amenities Parking Garage, Tennis, Pool, Pet Friendly, Health Club





5

Name Solona Ridge Apts Current Asking Rent/ Unit $1,260

Address 41754 Margarita Rd Current Vacancy Rate 1.9%



ZIP 92591 Floors 2



Data As Of 01/31/14

Studio 1BR 2BR 3BR

Current Asking Rent/Unit N/A $1,075 $1,400 $1,648

Unit Size (SF) N/A 766 1,041 1,220

Units N/A 147 149 16


Unit Amenities None Reported

Community Amenities Pet Friendly

6

Name Sycamore Terrace Current Asking Rent/ Unit $1,145




ZIP 92591 Floors 2



Data As Of 01/31/14

Studio 1BR 2BR 3BR





Unit Amenities Dishwasher, Internet, Fireplace

Community AmenitiesBusiness Center, Tennis, Pool, Pet Friendly, SharedLaundry, Health Club, Clubhouse





7

Name Somerset Apartments Current Asking Rent/ Unit $971

Address 42211 Stonewood Rd Current Vacancy Rate 0.3%



ZIP 92591 Floors 2



Data As Of 01/31/14

Studio 1BR 2BR 3BR

Current Asking Rent/Unit N/A N/A $971 N/A

Unit Size (SF) N/A N/A 945 N/A

Units N/A N/A 318 N/A

Current Asking Rent/SF N/A N/A $1.03 N/A

Unit Amenities Dishwasher, Washer Dryer, Internet

Community AmenitiesParking Garage, Security Patrol, Pet Friendly, ParkingLot, Shared Laundry, Health Club

8

Name Temecula Gardens Current Asking Rent/ Unit $974

Address 29485 Rancho California Rd Current Vacancy Rate 8.3%



ZIP 92591 Floors 2



Data As Of 01/31/14

Studio 1BR 2BR 3BR






Community Amenities Parking Garage, Pool, Shared Laundry





9

Name Tuscany Ridge Apts Current Asking Rent/ Unit $1,353




ZIP 92591 Floors 2



Data As Of 01/31/14

Studio 1BR 2BR 3BR

Current Asking Rent/Unit N/A $1,185 $1,497 $1,863

Unit Size (SF) N/A 740 1,041 1,320

Units N/A 120 84 16


Unit Amenities Dishwasher, Unit Security, Internet

Community AmenitiesBusiness Center, Pool, Pet Friendly, Health Club,Parking Garage, Clubhouse

10

Name Sage Canyon Current Asking Rent/ Unit $1,128

Address 42200 Moraga Rd Current Vacancy Rate 2.9%



ZIP 92591 Floors 2



Data As Of 01/31/14

Studio 1BR 2BR 3BR

Current Asking Rent/Unit N/A N/A $1,087 $1,305

Unit Size (SF) N/A N/A 869 960

Units N/A N/A 280 64

Current Asking Rent/SF N/A N/A $1.25 $1.36

Unit Amenities None Reported

Community Amenities Health Club, Tennis, Pool





Property Report

Murrieta, CA


Apartment

Sales Comparables


Name (None Entered)

Address/Area Searched , Murrieta, CA

Metro San Bernardino/Riverside

Section 10 - Summary Statistics

Low Average High

Number of Units 4 166 320

Number of Floors 2 2 3

Year Built 1979 1993 2010

Time Since Sale (months) 4 8 15

Sale Price $500,000 $22,250,800 $58,000,000

Sale Price Per Unit $60,417 $134,203 $211,679

Effective Gross Income Multiplier 6.2x 9.5x 13.2x

Total Number of Properties 10

Sales ComparablesMetro: San Bernardino/RiversidePrepared for Golden Eagle Multi Family Properties, LLC

Clearly Objective.





Clearly Objective.



AddressDistance

From Subject Submarket Year Built Floors Total Units Sale Price Price Per Unit Sale Date

1. 666-674 Woodcrest Dr 12.90 mi. Perris 1987 2 8 $1,000,000 $125,000 15 Nov 2013Lake Elsinore, CA 92530

2. 1250 S Perris Blvd 14.94 mi. Perris 1979 2 24 $1,450,000 $60,417 18 Oct 2013Perris, CA 92570

3. 678 Woodcrest Dr 12.91 mi. Perris 1987 2 4 $500,000 $125,000 02 Oct 2013Lake Elsinore, CA 92530

4. 42168-42211 Stonewood Rd 4.97 mi. SW Riverside Cty 1987 2 318 $33,650,000 $105,818 01 Oct 2013Temecula, CA 92591

5. 40125 Los Alamos Rd 1.56 mi. SW Riverside Cty 1989 2 200 $23,900,000 $119,500 27 Aug 2013Murrieta, CA 92562

6. 28377 Encanto Dr 10.50 mi. Perris 1990 2 96 $8,100,000 $84,375 27 Jun 2013Sun City, CA 92586

7. 30951 Hanover Ln 8.21 mi. Perris 2009 3 230 $31,000,000 $134,783 03 Jun 2013Menifee, CA 92584

8. 2088 E Lakeshore Dr 8.85 mi. Perris 2008 3 184 $23,908,000 $129,935 25 Apr 2013Lake Elsinore, CA 92530

9. 28845 Pujol St 6.17 mi. SW Riverside Cty 2010 3 274 $58,000,000 $211,679 21 Dec 2012Temecula, CA 92590

10. 29605 Solana Way 4.55 mi. SW Riverside Cty 1988 2 320 $41,000,000 $128,125 19 Dec 2012Temecula, CA 92591


Clearly Objective.



Property Location and Physical Characteristics

Property Name Property Type Market Rate Rental

Address 666-674 Woodcrest Dr Building Area (SF) 12,128

City Lake Elsinore No. of Bldgs./Floors 1 / 2

State/ZIP/County CA / 92530 / Riverside Year Built/Renovated 1987 / --

Metro (Submarket) San Bernardino/Riverside (Perris) Total Units/Asset Class 8 / BC

Distance from subject 12.90 miles

Comments

Sale Details and Analysis

Sale Date 15 Nov 2013 Reis Cap Rate Analysis ProformaSale Price $1,000,000 (Verified: Pub Rcrd) All per unit figures are monthly

Sale Price/Unit $125,000 Total Units 8Sale Price PSF $82 Potential Rent Revenue $81,657

Vacancy at Sale -- Vacancy Loss/Rate ($3,736) [ 4.6%]$851 Market Rent x 12 Months

x 8 Units x 4.6%

Seller 1. Nickel Family 1998 Trust Effective Rent Revenue $77,922$851 In Place Rent x 12 Months

x 8 Units x 95.4%

Free Rent Concessions ($1,344) [$168 Per Unit]Credit Loss ($817) [ 1.0%]

Buyer 1. VWG LLC / 1560 Norstar Ln, Fallbrook, CA 92028 Additional Income $0 [$0 Per Unit]

Effective Gross Revenue $75,761Operating Expenses/Ratio ($29,233) [ 35.8%]

Capital Reserve ($2,800) [$350 Per Unit]Comments Net Operating Income $43,727

Estimated Going-in Cap Rate 4.4%Based on Sale Price of $1,000,000

12-Month Rolling Metro Cap Rate 6.7% (Q4 2013)Reported Cap Rate, This Sale None

Additional Details When Available

Seller's Broker Buyer's Broker

Other Broker

Interest Purchased -- Lot Size 20,908 SF / 0.48 Acres

Parcel Numbers 379341019, 379341020 Number Monthly RentEfficiencies -- --

1 Bedrooms -- --

2 Bedrooms -- --

3 Bedrooms -- --

Deed Reference 547340 4 Bedrooms -- --

Time on Market Total 8 --

Financing Details

Other:


Clearly Objective.





Address 1250 S Perris Blvd Building Area (SF) 18,000

City Perris No. of Bldgs./Floors 1 / 2




Comments


Sale Date 18 Oct 2013 Reis Cap Rate Analysis ProformaSale Price $1,450,000 (Verified: Pub Rcrd) All per unit figures are monthly

Sale Price/Unit $60,417 Total Units 24Sale Price PSF $81 Potential Rent Revenue $251,122


x 24 Units x 4.3%

Seller 1. Harkness B H Trust Effective Rent Revenue $240,375$872 In Place Rent x 12 Months

x 24 Units x 95.7%

Free Rent Concessions ($4,146) [$173 Per Unit]Credit Loss ($2,511) [ 1.0%]

Buyer 1. Mmmse Hamilton LP / 3 Monarch Bay Plz, Dana Point, CA92629

Additional Income $0 [$0 Per Unit]







Other Broker


Parcel Number 313283037 Number Monthly RentEfficiencies -- --

1 Bedrooms -- --

2 Bedrooms -- --

3 Bedrooms -- --



Financing Details

Other:


Clearly Objective.





Address 678 Woodcrest Dr Building Area (SF) 6,064





Comments


Sale Date 02 Oct 2013 Reis Cap Rate Analysis ProformaSale Price $500,000 (Verified: Pub Rcrd) All per unit figures are monthly

Sale Price/Unit $125,000 Total Units --Sale Price PSF $82 Potential Rent Revenue --

Vacancy at Sale -- Vacancy Loss/Rate --

Seller 1. Fenton Living Trust Effective Rent Revenue --

Free Rent Concessions --Credit Loss --

Buyer 1. Antonio Carreon / 16238 Summershade Dr, La Mirada, CA90638

Additional Income --

Effective Gross Revenue --Operating Expenses/Ratio --

Capital Reserve --Comments Net Operating Income --

Estimated Going-in Cap Rate --




Other Broker



1 Bedrooms -- --

2 Bedrooms -- --

3 Bedrooms -- --



Financing Details

Other:


Clearly Objective.




Property Name Somerset Apartment Homes Property Type Market Rate Rental

Address 42168-42211 Stonewood Rd Building Area (SF) 300,510NRA

City Temecula No. of Bldgs./Floors 40 / 2

State/ZIP/County CA / 92591 / Riverside Year Built/Renovated 1987 / 2013

Metro (Submarket) San Bernardino/Riverside (SW Riverside Cty) Total Units/Asset Class 318 / BC


Comments


Sale Date 01 Oct 2013 Reis Cap Rate Analysis ProformaSale Price $33,650,000 (Verified: Pub Rcrd) All per unit figures are monthly

Sale Price/Unit $105,818 Total Units 318Sale Price PSF $112NRA Potential Rent Revenue $3,892,320

Vacancy at Sale -- Vacancy Loss/Rate ($24,480) [ 0.6%]$1,020 Market Rent x 12 Months

x 318 Units x 0.6%

Seller 1. CWCapital Asset Management LLC / (410) 500-4300 / 1 SouthSt, Ste 850, Baltimore, MD 212022. 42211 Stonewood Road Holdings LLC / 701 13 St NW, Ste1000, Washington, DC 20005

Effective Rent Revenue $3,867,840$1,020 In Place Rent x 12 Months

x 318 Units x 99.4%


Buyer 1. Somerset LP / 3366 Via Lido, Newport Beach, CA 92663 Additional Income $0 [$0 Per Unit]

Effective Gross Revenue $3,801,842Operating Expenses/Ratio ($1,416,804) [ 36.4%]

Capital Reserve ($111,300) [$350 Per Unit]Comments Net Operating Income $2,273,737





Other Broker


Parcel Numbers 921-300-011, 921-300-012 Number Monthly RentEfficiencies -- --

1 Bedrooms -- --

2 Bedrooms 318 --

3 Bedrooms -- --

Deed Reference 2013-0475449 4 Bedrooms -- --

Time on Market Total 318 $0

Financing Details City National Bank provided a $33,275,000 loan.

Other:

Laundry Facility. Pool. Health Club. Security. Property previously sold in March 2002 and September 2003; See Reis Sales Comparables IDs 54743 and 67846.


Clearly Objective.




Property Name Rancho Las Brisas Property Type Market Rate Rental

Address 40125 Los Alamos Rd Building Area (SF)

City Murrieta No. of Bldgs./Floors 11 / 2


Metro (Submarket) San Bernardino/Riverside (SW Riverside Cty) Total Units/Asset Class 200 / BC


Comments


Sale Date 27 Aug 2013 Reis Cap Rate Analysis ProformaSale Price $23,900,000 (Verified: Pub Rcrd) All per unit figures are monthly

Sale Price/Unit $119,500 Total Units 200Sale Price PSF -- Potential Rent Revenue $3,010,344


x 200 Units x 4.3%

Seller 1. Rancho Las Brisas Murrieta LP / 30950 Rancho Viejo Rd, Ste100, San Juan Capistrano, CA 926752. Foundation For Affordable Housing V Inc / 384 Forest Ave, Ste14, Laguna Beach, CA 92651


x 200 Units x 95.7%


Buyer 1. Vantage Point SD LP / 2655 Camino Del Rio N, Ste 320, SanDiego, CA 92108








Other Broker


Parcel Numbers 948320005, 948320007, 948320003 Number Monthly RentEfficiencies -- --

1 Bedrooms 48 --

2 Bedrooms 152 --

3 Bedrooms -- --



Financing Details Union Bank provided a $18,187,500 loan.

Other:

Laundry Facility. Pool. Exercise Room. Property previously sold in June 2006 and December 2011; See Reis Sales Comparables IDs 133775 and 372601.


Clearly Objective.




Property Name Villa La Paz Property Type Market Rate Rental

Address 28377 Encanto Dr Building Area (SF) 82,752NRA

City Sun City No. of Bldgs./Floors -- / 2


Metro (Submarket) San Bernardino/Riverside (Perris) Total Units/Asset Class 96 / A


Comments


Sale Date 27 Jun 2013 Reis Cap Rate Analysis ProformaSale Price $8,100,000 (Verified: Pub Rcrd) All per unit figures are monthly



x 96 Units x 11.5%

Seller 1. Villa La Paz LLC / 421 S Beverly Dr, 7th Fl, Beverly Hills, CA902122. KOR/KSI Villa La Paz LLC / 421 S Beverly Dr, 7th Fl, BeverlyHills, CA 90212

Effective Rent Revenue $892,500$875 In Place Rent x 12 Months

x 96 Units x 88.5%


Buyer 1. Villagio Villas LP / 3366 Via Lido, Newport Beach, CA 92663 Additional Income $0 [$0 Per Unit]







Other Broker


Parcel Number 336-030-009 Number Monthly RentEfficiencies -- --

1 Bedrooms 18 --

2 Bedrooms 54 --

3 Bedrooms 24 --



Financing Details

Other:

Laundry Facility. Pool. Health Club.


Clearly Objective.




Property Name Cantabria Property Type Market Rate Rental

Address 30951 Hanover Ln Building Area (SF)

City Menifee No. of Bldgs./Floors 12 / 3




Comments


Sale Date 03 Jun 2013 Reis Cap Rate Analysis ProformaSale Price $31,000,000 (Verified: Pub Rcrd) All per unit figures are monthly



x 230 Units x 3.0%

Seller 1. Robb Evans Effective Rent Revenue $3,570,389$1,334 In Place Rent x 12 Months

x 230 Units x 97.0%


Buyer 1. Strata Cantabria LLC / 4370 La Jolla Village Dr, Ste 960, SanDiego, CA 92122








Other Broker



1 Bedrooms 128 --

2 Bedrooms 102 --

3 Bedrooms -- --



Financing Details CBRE Capital Markets Inc provided a $20,100,000 loan.

Other:


Clearly Objective.




Property Name Broadstone River's Edge Apts Property Type Market Rate Rental

Address 2088 E Lakeshore Dr Building Area (SF)





Comments


Sale Date 25 Apr 2013 Reis Cap Rate Analysis ProformaSale Price $23,908,000 (Verified: Pub Rcrd) All per unit figures are monthly

Sale Price/Unit $129,935 Total Units --Sale Price PSF -- Potential Rent Revenue --

Vacancy at Sale -- Vacancy Loss/Rate --

Seller 1. Broadstone Rivers Edge LLC / 40 E 52nd St, New York, NY100222. Broadstone Rivers Edge Alliance LLC / 2415 E Camelback Rd,Ste 600, Phoenix, AZ 850163. Broadstone Rivers Edge Alliance II LLC / 2415 E CamelbackRd, Ste 600, Phoenix, AZ 85016

Effective Rent Revenue --

Free Rent Concessions --Credit Loss --

Buyer 1. Rivers Edge Apartments LLC / 9757 NE Juanita Dr, Ste 300,Kirkland, WA 98034

Additional Income --

Effective Gross Revenue --Operating Expenses/Ratio --

Capital Reserve --Comments Net Operating Income --

Estimated Going-in Cap Rate --




Other Broker



1 Bedrooms -- --

2 Bedrooms -- --

3 Bedrooms -- --



Financing Details Berkadia Commercial Mortgage LLC provided a $17,545,000 loan.

Other:

Pool. Health Club.


Clearly Objective.




Property Name The Vineyards At Old Town Temecula Property Type Market Rate Rental

Address 28845 Pujol St Building Area (SF)



Metro (Submarket) San Bernardino/Riverside (SW Riverside Cty) Total Units/Asset Class 274 / A


Comments


Sale Date 21 Dec 2012 Reis Cap Rate Analysis ProformaSale Price $58,000,000 (Verified: Pub Rcrd) All per unit figures are monthly



x 274 Units x 2.2%

Seller 1. Private Seller Effective Rent Revenue $5,237,620$1,629 In Place Rent x 12 Months

x 274 Units x 97.8%


Buyer 1. Vineyards Temecula Apartments / 28845 Pujol St, Temecula,CA 92590








Other Broker



1 Bedrooms -- --

2 Bedrooms -- --

3 Bedrooms -- --



Financing Details

Other:


Clearly Objective.




Property Name Acacia Park Property Type Market Rate Rental

Address 29605 Solana Way Building Area (SF) 300,960NRA



Metro (Submarket) San Bernardino/Riverside (SW Riverside Cty) Total Units/Asset Class 320 / A


Comments


Sale Date 19 Dec 2012 Reis Cap Rate Analysis ProformaSale Price $41,000,000 (Verified: Pub Rcrd) All per unit figures are monthly



x 320 Units x 0.9%

Seller 1. Universe At Temecula Park LLC / 1875 Century Park E, Ste1800, Los Angeles, CA 90067


x 320 Units x 99.1%


Buyer 1. Apa 9 Owner LLC Additional Income $0 [$0 Per Unit]







Other Broker



1 Bedrooms 128 --

2 Bedrooms 192 --

3 Bedrooms -- --



Financing Details

Other:

Washer/Dryer Hook-ups. Pool. Tennis. Health Club. Exercise Room. Property previously sold in May, 2006; See Reis Sales Comparables ID 133753.


Clearly Objective.



Property Report

Murrieta, CA


Apartment

New Construction Comparables


Search Parameters

Address, Market/Submarketor ZIP code(s) Murrieta CA

Reis Metro San Bernardino/Riverside

Radius (mi) 15

Include Proposed,Planned,Under Constr.,Complete

Size N/A

Expected Completion N/A

Summary Statistics Parameters

Low Average High

Distance from Subject (mi) 0.24 6.49 10.81

Months Until Completion N/A N/A 6

Size 40 153 312

New Construction ComparablesMetro: San Bernardino/RiversidePrepared for Golden Eagle Multi Family Properties, LLC

Clearly Objective.



Section 15 - Comparable Group Listing

No. PropertyDistance

From Subject(mi)

Submarket Subtype Size Estimated GroundBreak

ExpectedCompletion Status

1 295 W SUMNER AVE @LANGSTAFF ST

10.49 SW Riverside County Subsidized/LowIncome

113 3/2011 7/2012 Complete

2 31152 SUNFLOWER WAY @ LOMALINDA RD

8.21 SW Riverside County Condominiums 236 4/2007 8/2012 Complete

3 28701 PUJOL ST @ 1ST ST 6.01 SW Riverside County Subsidized/LowIncome

44 1/2013 Complete

4 JEFFERSON AVE @ JUNIPER ST 0.24 SW Riverside County Subsidized/LowIncome

40 2/2012 3/2013 Complete

5 44155 MARGARITA RD @TEMECULA PKWY

8.23 SW Riverside County Subsidized/LowIncome

59 4/2013 2/2014 Complete

6 CAMPANULA WAY @ MEADOWSPKWY

8.49 SW Riverside County Apartment 288 3/2013 8/2014 Under Constr.

7 24055 CLINTON KEITH RD @INLAND VALLEY DR

3.03 SW Riverside County Apartment 312 4/2013 9/2014 Under Constr.

8 VISTA MURRIETA @ MONROE AVE 1.12 SW Riverside CountySeniorCitizenHousing

98 10/2013 9/2014 Under Constr.

9 GRAND AVE @ SANTA ROSA DR 10.81 PerrisSeniorCitizenHousing

154 Planned

10 DE PORTOLA RD @ MEADOWSPKWY

8.29 SW Riverside County Condominiums 186 Planned


Clearly Objective.





Clearly Objective.



Property Report

Murrieta, CA


Apartment

Submarket Analysis

Section 17 - Executive Briefing on Submarket Conditions

Average Asking Rent $1,202

● Up 0.5% from Q3 2013.

● Expected to finish 2014 at $1,224.

Average Vacancy Rate 3.0%

● Down 50 basis points from Q3 2013.

● Lowest level since year-end 2001.

● Expected to finish 2014 at 4.1%.

Submarket OverviewThe Southwest Riverside County submarket, one of sixteen distinct geographic concentrations within SanBernardino/Riverside, contains 7,923 market rate rental units, or 6.0% of the metro's total inventory of apartmentspace. In the ten-year period since Q4 2003, new additions to the submarket have totaled 2,400 units, while 32 unitshave been removed from the inventory of market rate rentals. The net total gain of 2,368 apartments amounts to anannualized inventory growth rate of 3.6%, exceeding the metro growth rate of 1.0% over the same period.

Asking And Effective RentAsking rents increased by 0.5% during the fourth quarter of 2013 to an average of $1,202, a level surpassed by onlythree of San Bernardino/Riverside's sixteen submarkets: Rancho Cucamonga ($1,420), South Ontario/Chino ($1,341),and Riverside County/Corona ($1,216). Mean unit prices in the submarket are as follows: one bedrooms $1,037, twobedrooms $1,238, and three bedrooms $1,551. The submarket's streak of seven consecutive quarterly gains, whichbegan in Q2 2012, has increased asking rents by a cumulative total of 3.7%. The Southwest Riverside Countysubmarket's current asking rent levels are higher than the San Bernardino/Riverside metro average of $1,099, whileasking rent growth in the current quarter compares unfavorably to the metro average of 0.6%. Effective rents, whichexclude the value of concessions offered to prospective tenants, advanced by 0.6% during the fourth quarter to anaverage of $1,175.

Competitive Inventory, Household Formations, AbsorptionNet new household formations in San Bernardino/Riverside were 5,170 during the fourth quarter. Quarterly movementin the average occupancy level of market rate apartment properties rarely mirrors the period's total household formationor losses, but it is advisable to weigh longer-term economic and demographic trends as factors contributing to currentdemand. Since Q4 2003, household formations in San Bernardino/Riverside have averaged 1.7% per year,representing the average annual addition of 20,700 households. Over the same time period, the metro experienced anaverage annual absorption rate of 1,373 units. During the fourth quarter, metropolitan absorption totaled 545 units, ofwhich the Southwest Riverside County submarket captured 39 units. Over the last four quarters, apartment absorptiontotaled 103 units, less than half the average annual absorption rate in the submarket of 248 units recorded since Q42003. The submarket's average vacancy rate declined by 50 basis points to 3.0% during the quarter, which is 4.1percentage points lower than the long-term average, and 0.1 percentage points lower than the current metro average.

Submarket Analysis (Monthly Data)Apartment - January, 2014

Submarket: SW Riverside CountyPrepared for Golden Eagle Multi Family Properties, LLCClearly Objective.



Section 18 - Current Submarket Rent Details

Asking Rent by Age Asking Rent Distribution Asking Rent Growth Rate Distribution

Year Built Rent

Before 1970 n/a

1970-1979 $912

1980-1989 $1,086

1990-1999 $1,121

2000-2009 $1,297

After 2009 $1,859

All $1,207

As of January 31, 2014

Low 25% Mean Median 75% High

$934 $1,085 $1,207 $1,212 $1,306 $1,859

5

3

10

8

1 10

1

Under$1,050

$1,051$1,166

$1,167$1,282

$1,283$1,398

$1,399$1,514

$1,515$1,630

$1,631$1,746

$1,747Over

Num

ber

of P

rope

rtie

sLow 25% Mean Median 75% High

0.1% 0.4% 0.6% 0.4% 0.4% 4.3%

26

1 0 0 0 0 02

Under0.6%

0.7%1.1%

1.2%1.6%

1.7%2.1%

2.2%2.6%

2.7%3.1%

3.2%3.6%

3.7%Over

Num

ber

of P

rope

rtie

s

0 Negative Growth 29Positive Growth

As of January 31, 2014 90 days ending January 31, 2014


Asking Rent Growth


4Q13 3Q13 YTD Avg 1 Year 3 Year 5 Year

SW Riverside Cty 0.5% 0.9% 0.4% 1.6% 1.7% 1.4%


West 0.9% 1.1% 0.8% 3.3% 2.9% 1.1%

United States 0.8% 1.0% 0.8% 3.0% 2.7% 1.5%

Period Ending: 12/31/13 09/30/13 12/31/13 12/31/13 12/31/13 12/31/13

Submarket Ranking

4Q13 3Q13

N/A N/A

9 2

144 94

447 300

12/31/13 09/30/13* of 16 metro level submarkets

** of 240 regional submarkets

*** of 834 U.S. submarkets

-0.4%

-0.2%

0.0%

0.2%

0.4%

SW Riverside Cty San Bernardino/Riverside West US

Monthly Asking Rent Growth Rate Trends

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan

SW Riverside Cty 0.1% -0.4% 0.4% 0.1% 0.2% -0.1% 0.3% 0.2% 0.4% 0.2% 0.2% 0.1% 0.3%

San Bernardino/Riverside 0.2% 0.0% 0.0% 0.1% 0.1% 0.1% 0.2% 0.2% 0.1% 0.2% 0.2% 0.2% 0.3%

West 0.2% 0.1% 0.2% 0.2% 0.2% 0.3% 0.4% 0.4% 0.3% 0.4% 0.3% 0.3% 0.2%

United States 0.2% 0.1% 0.2% 0.2% 0.2% 0.3% 0.3% 0.4% 0.2% 0.4% 0.2% 0.2% 0.3%

2013 2014






Section 20 - Current Submarket Vacancy Details

Vacancy Rate By Age Vacancy Rate Distribution

Year Built Vac. Rate

Before 1970 n/a

1970-1979 0.0%

1980-1989 3.2%

1990-1999 2.1%

2000-2009 3.0%

After 2009 0.7%

All 2.9%



0.0% 1.7% 2.9% 2.2% 3.9% 8.3%

7

5

7

6

1 1 1 1

Under1.0%

1.1%2.0%

2.1%3.0%

3.1%4.0%

4.1%5.0%

5.1%6.0%

6.1%7.0%

7.1%Over

Num

ber

of P

rope

rtie

s



Vacancy Rates



SW Riverside Cty 3.0% 3.5% 3.6% 3.7% 5.0% 6.3%


West 3.5% 3.6% 3.6% 3.7% 4.4% 5.1%

United States 4.2% 4.2% 4.3% 4.4% 5.1% 5.9%

Period Ending: 12/31/13 09/30/13 12/31/13 12/31/13 12/31/13 12/31/13

Submarket Ranking

4Q13 3Q13

N/A N/A

8 8

101 123

257 315




3.0%

3.5%

4.0%

4.5%


Monthly Metro Vacancy Rate Trends


SW Riverside Cty 4.2% 4.1% 4.0% 4.0% 4.1% 3.9% 3.9% 3.7% 3.5% 3.5% 3.3% 3.0% 2.9%


West 3.8% 3.8% 3.7% 3.7% 3.7% 3.7% 3.7% 3.7% 3.6% 3.7% 3.6% 3.5% 3.4%

United States 4.5% 4.5% 4.4% 4.3% 4.3% 4.3% 4.3% 4.3% 4.2% 4.3% 4.3% 4.2% 4.0%

2013 2014






Section 22 - Submarket Unit Mix Rent Details

Current Submarket Average Rents and Sizes Asking Rent Growth

January Quarterly Annualized

Rent Avg. SF Avg. Rent PSF 4Q13 3Q13 YTD 1 Year 3 Year 5 Year

Studio/Efficiency N/A N/A N/A N/A N/A N/A N/A N/A N/A

One Bedroom $1,041 720 $ 1.45 0.0% 0.4% 1.6% 1.3% 1.4% 1.4%

Two Bedroom $1,242 999 $ 1.24 0.5% 1.1% 1.7% 1.3% 1.9% 1.6%

Three Bedroom $1,556 1261 $ 1.23 1.6% 1.2% 4.1% 3.7% 1.3% 0.6%

Average over period ending: 12/31/13 09/30/13 12/31/13 12/31/13 12/31/13 12/31/13

Studio 1 BR 2 BR 3 BR

$0

$500

$1,000

$1,500

Asking Rent Comparisons

SW Riverside County San Bernardino/RiversideStudio 1 BR 2 BR 3 BR

$0.00

$0.50

$1.00

$1.50

Asking Rent Per SF

SW Riverside County San Bernardino/Riverside

As of January 31, 2014 As of January 31, 2014


SW Riverside County N/A $1,041 $1,242 $1,556

San Bernardino/Riverside $762 $975 $1,156 $1,502As of January 31, 2014


SW Riverside County N/A $ 1.45 $ 1.24 $ 1.23

San Bernardino/Riverside $ 1.57 $ 1.39 $ 1.21 $ 1.21As of January 31, 2014

Section 23 - Submarket Unit Mix Inventory Details

31.1%

60.0%

8.9%

Submarket Unit Mix

Studios1 BR2 BR3 BR +


0

500

1,000

Average Unit Size (SF)

SW Riverside County San Bernardino/Riverside






Section 24 - Submarket Inventory Details

Inventory By Building Age Apartment Stock Traits

Year Built Percent

Before 1970 0.0%

1970-1979 2.0%

1980-1989 39.0%

1990-1999 13.0%

2000-2009 43.0%

After 2009 4.0%

All 100.0%


SubmarketLow Mean Median High

Year Built 1971 1997 1999 2010Size (units) 114 259 224 492

Distance to Highway (miles) 0.1 1 0.8 4.2Distance to CBD (miles) 10.9 16 16 18.6

Distance to Landmark (miles) 22.8 24.5 24 29.3As of January 31, 2014 Landmark =Coast

Average Submarket Lease Terms

Free Rent(mos)

Expenses %(Apartment)

0.27 36.2%As of January 31, 2014

Section 25 - Inventory Growth Comparisons

Inventory Growth Rates



SW Riverside Cty 0.0% 0.0% 0.0% 0.0% 0.0% 1.2%


West 0.4% 0.3% 0.3% 1.1% 0.6% 0.8%

United States 0.4% 0.4% 0.3% 1.3% 0.8% 1.0%

Period Ending: 12/31/13 09/30/13 12/31/13 12/31/13 12/31/13 12/31/13

Submarket Ranking

4Q13 3Q13

N/A N/A

9 9

176 176

569 570




3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13

0.000.050.100.150.200.250.300.350.40

Metro Inventory Growth Rate Trends


%






Section 26 - Construction/Absorption Change

Construction and Absorption

Most Recent Three Months Quarterly

November - January 4Q13 3Q13 YTD Avg

Units Built UnitsAbsorbed Units Built Units

Absorbed Units Built UnitsAbsorbed Units Built Units

Absorbed

SW Riverside Cty 0 47 0 39 0 32 0 103

San Bernardino/Riverside 0 755 0 545 0 204 0 1,310Period ending: 01/31/14 01/31/14 12/31/13 12/31/13 09/30/13 09/30/13 12/31/13 12/31/13

Annualized

1 Year History 3 Year History 5 Year History

Units Built UnitsAbsorbed

Con/AbsRatio Units Built Units

AbsorbedCon/Abs

Ratio Units Built UnitsAbsorbed

Con/AbsRatio

SW Riverside Cty 0 103 0.0 0 116 0.0 90 180 0.5

San Bernardino/Riverside 0 1,310 0.0 232 1,721 0.1 712 1,686 0.4Average over period ending: 12/31/13 12/31/13 12/31/13 12/31/13 12/31/13 12/31/13 12/31/13 12/31/13 12/31/13

-10

0

10

20

Num

ber

of U

nits

0

1

2

3

4

Vac

ancy

Rat

e (%

)

Construction/Absorption and Vacancy

Vacancy Rate Construction Absorption


2013 2014






Section 27 - Submarket Area Map: SW Riverside County

Metro:San Bernardino/Riverside Submarket:SW Riverside County

Escondido Frwy Clinton Keith Rd Murrieta Township Boundary

Baxter Rd Central St





Property Report

Murrieta, CA


Apartment

Metro Analysis

Section 28 - Executive Briefing on Metro Conditions

Average Asking Rent $1,099

● Up 0.6% from Q3 2013.

● Fastest rate of increase in four quarters.

● Expected to finish 2014 at $1,127.

Average Vacancy Rate 3.1%

● Down 40 basis points from Q3 2013.

● Among the 20 lowest vacancies nationally.

● Expected to finish 2014 at 3.2%.

Market OverviewThe San Bernardino/Riverside apartment market is comprised of 132,242 units in sixteen geographic concentrationsranging in size from the 16,647 unit University City/Moreno Valley submarket to the Perris submarket, which accountsfor 2,903 units. In the ten-year period since Q4 2003, the University City/Moreno Valley submarket has experienced thegreatest introduction of new inventory, 3,667 units, amounting to 23.3% of all new market rate rentals added to themarket.

Asking And Effective RentAsking rents climbed by 0.6% during the fourth quarter of 2013 to an average of $1,099. Mean unit prices in the metroare as follows: studios $760, one bedrooms $972, two bedrooms $1,153, and three bedrooms $1,498. This advanceextends the market's streak of gains to thirteen quarters, during which asking rents have risen by a total of 6.5%. SinceQ4 2003, the metro as a whole has recorded an annual average increase of 2.4%. Effective rents, which exclude thevalue of concessions offered to prospective tenants, rose by 0.7% during the fourth quarter to an average of $1,071.Although the majority of the San Bernardino/Riverside MSA's sixteen apartment submarkets contributed to the metro'srecent rent growth, it is helpful to observe that the 1.5% asking rent growth rate of the past four quarters comparesunfavorably to the metro's long term performance.

Competitive Inventory, Household Formations, AbsorptionThe fourth quarter added 5,170 net new households to the San Bernardino/Riverside MSA. Absorption of market raterental units may not immediately reflect quarterly total household formations or losses, but it is prudent to considerlonger-term economic and demographic performance as influential upon current occupancy levels. Since Q4 2003,household formations in San Bernardino/Riverside have averaged 1.7% per year, representing the average annualaddition of 20,700 households. Demand attributable in part to this pace of household formations contributed to theabsorption of 545 units during the fourth quarter, while new development added no units to the metro inventory; the neteffect of absorption and construction dynamics caused the vacancy rate to declined by 40 basis points to 3.1%. Overthe last four quarters, apartment absorption totaled 1,310 units, 4.6% lower than the average annual absorption rate inthe market of 1,373 units recorded since Q4 2003. In a long-term context, the market's fourth quarter vacancy rate is2.3 percentage points lower than the 5.4% average recorded since Q4 2003.

Metro Analysis (Monthly Data)Apartment - January, 2014




Section 29 - Current Metro Rent Details

Asking Rent by Age Asking Rent Distribution Asking Rent Growth Rate Distribution

Year Built Rent

Before 1970 $851

1970-1979 $969

1980-1989 $1,039

1990-1999 $1,174

2000-2009 $1,381

After 2009 $1,455

All $1,102



$697 $925 $1,102 $1,088 $1,268 $1,717

142131

143

9577

3622 19

Under$825

$826$953

$954$1,081

$1,082$1,209

$1,210$1,337

$1,338$1,465

$1,466$1,593

$1,594Over

Num

ber

of P

rope

rtie

sLow 25% Mean Median 75% High

- 0.7% 0.4% 0.7% 0.6% 0.9% 2.3%

22 19

106

256

174

2915

44

Under- 0.5%

- 0.4%- 0.1%

0.0%0.3%

0.4%0.7%

0.8%1.1%

1.2%1.5%

1.6%1.9%

2.0%Over

Num

ber

of P

rope

rtie

s

41 Negative Growth 624Positive Growth

As of January 31, 2014 90 days ending January 31, 2014


Asking Rent Growth




West 0.9% 1.1% 0.8% 3.3% 2.9% 1.1%

United States 0.8% 1.0% 0.8% 3.0% 2.7% 1.5%

Period Ending: 12/31/13 09/30/13 12/31/13 12/31/13 12/31/13 12/31/13

Metro Ranking

4Q13 3Q13

N/A N/A

16 17

52 68

12/31/13 09/30/13* of 19 regional metros

** of 82 U.S. metros

0.0%

0.1%

0.2%

0.3%

0.4%

San Bernardino/Riverside West US

Monthly Asking Rent Growth Rate Trends



West 0.2% 0.1% 0.2% 0.2% 0.2% 0.3% 0.4% 0.4% 0.3% 0.4% 0.3% 0.3% 0.2%

United States 0.2% 0.1% 0.2% 0.2% 0.2% 0.3% 0.3% 0.4% 0.2% 0.4% 0.2% 0.2% 0.3%

2013 2014






Section 31 - Current Metro Vacancy Details

Vacancy Rate By Age Vacancy Rate Distribution

Year Built Vac. Rate

Before 1970 5.0%

1970-1979 3.1%

1980-1989 3.4%

1990-1999 3.3%

2000-2009 3.2%

After 2009 4.1%

All 2.9%



0.0% 1.2% 2.9% 2.3% 4.2% 13.0%

261

186

8455

25 13 1130

Under1.6%

1.7%3.2%

3.3%4.8%

4.9%6.4%

6.5%8.0%

8.1%9.6%

9.7%11.2%

11.3%Over

Num

ber

of P

rope

rtie

s



Vacancy Rates




West 3.5% 3.6% 3.6% 3.7% 4.4% 5.1%

United States 4.2% 4.2% 4.3% 4.4% 5.1% 5.9%

Period Ending: 12/31/13 09/30/13 12/31/13 12/31/13 12/31/13 12/31/13

Metro Ranking

4Q13 3Q13

N/A N/A

7 9

15 23



3.0%

3.5%

4.0%

4.5%


Monthly Metro Vacancy Rate Trends



West 3.8% 3.8% 3.7% 3.7% 3.7% 3.7% 3.7% 3.7% 3.6% 3.7% 3.6% 3.5% 3.4%

United States 4.5% 4.5% 4.4% 4.3% 4.3% 4.3% 4.3% 4.3% 4.2% 4.3% 4.3% 4.2% 4.0%

2013 2014






Section 33 - Metro Unit Mix Rent Details

Current Metro Average Rents and Sizes Asking Rent Growth

January Quarterly Annualized

Rent Avg. SF Avg. Rent PSF 4Q13 3Q13 YTD 1 Year 3 Year 5 Year

Studio/Efficiency $762 484 $ 1.57 0.1% - 0.1% 1.1% 0.8% 2.2% 0.5%

One Bedroom $975 703 $ 1.39 1.0% 0.6% 2.6% 2.3% 2.6% 1.0%

Two Bedroom $1,156 958 $ 1.21 0.3% 0.4% 1.4% 1.1% 1.9% 0.6%

Three Bedroom $1,502 1239 $ 1.21 1.1% 0.7% 1.7% 1.4% 1.4% 0.6%

Average over period ending: 12/31/13 09/30/13 12/31/13 12/31/13 12/31/13 12/31/13


$0

$500

$1,000

$1,500

Asking Rent Comparisons

San Bernardino/Riverside West USStudio 1 BR 2 BR 3 BR

$0.00

$0.50

$1.00

$1.50

$2.00

Asking Rent Per SF




San Bernardino/Riverside $762 $975 $1,156 $1,502

West $1,089 $1,245 $1,504 $1,712

United States $1,135 $1,131 $1,338 $1,537As of January 31, 2014


San Bernardino/Riverside $ 1.57 $ 1.39 $ 1.21 $ 1.21

West $ 2.02 $ 1.63 $ 1.40 $ 1.28

United States $ 2.06 $ 1.42 $ 1.19 $ 1.08As of January 31, 2014

Section 34 - Metro Unit Mix Inventory Details

2.8%

35.0%

56.3%

5.8%

Metro Unit Mix

Studios1 BR2 BR3 BR +


0

500

1,000

1,500

Average Unit Size (SF)







Section 35 - Metro Inventory Details

Inventory By Building Age Apartment Stock Traits

Year Built Percent

Before 1970 5.0%

1970-1979 11.0%

1980-1989 54.0%

1990-1999 9.0%

2000-2009 20.0%

After 2009 2.0%

All 100.0%


MetroLow Mean Median High

Year Built 1961 1986 1986 2012Size (units) 27 157 120 714

Distance to Highway (miles) 0.1 0.8 0.6 9.7Distance to CBD (miles) 6.2 32 31.7 46.8

Distance to Landmark (miles) 6.2 21 20.2 71.8As of January 31, 2014 Landmark =Coast

Average Metro Lease Terms

Free Rent(mos)

Expenses %(Apartment)

0.32 36.2%As of January 31, 2014

Section 36 - Inventory Growth Comparisons

Inventory Growth Rates




West 0.4% 0.3% 0.3% 1.1% 0.6% 0.8%

United States 0.4% 0.4% 0.3% 1.3% 0.8% 1.0%

Period Ending: 12/31/13 09/30/13 12/31/13 12/31/13 12/31/13 12/31/13

Metro Ranking

4Q13 3Q13

N/A N/A

17 16

64 64



3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13

0.000.050.100.150.200.250.300.350.40

Metro Inventory Growth Rate Trends


%






Section 37 - Construction/Absorption Change

Construction and Absorption

Most Recent Three Months Quarterly

November - January 4Q13 3Q13 YTD Avg

Units Built UnitsAbsorbed Units Built Units

Absorbed Units Built UnitsAbsorbed Units Built Units

Absorbed

San Bernardino/Riverside 0 755 0 545 0 204 0 1,310

West 8,205 16,509 10,145 13,142 7,566 9,266 32,280 43,140Period ending: 01/31/14 01/31/14 12/31/13 12/31/13 09/30/13 09/30/13 12/31/13 12/31/13

Annualized

1 Year History 3 Year History 5 Year History

Units Built UnitsAbsorbed

Con/AbsRatio Units Built Units

AbsorbedCon/Abs

Ratio Units Built UnitsAbsorbed

Con/AbsRatio

San Bernardino/Riverside 0 1,310 0.0 232 1,721 0.1 712 1,686 0.4

West 32,280 43,140 0.7 19,833 41,019 0.5 23,283 35,368 0.7Average over period ending: 12/31/13 12/31/13 12/31/13 12/31/13 12/31/13 12/31/13 12/31/13 12/31/13 12/31/13

-100

0

100

200

300

Num

ber

of U

nits

0

1

2

3

4

Vac

ancy

Rat

e (%

)

Construction/Absorption and Vacancy

Vacancy Rate Construction Absorption


2013 2014






Section 38 - Economic and Demographic Trends

2009 2010 2011 2012 2013

-6.0%

-4.0%

-2.0%

0.0%

2.0%

Total Employment Households Avg HH Income Population

San Bernardino/Riverside Economic/Demographic Trends

Per

cent

age

Cha

nge

Provided by Moody's Economy.com, Period ending 12/31/13

2009 2010 2011 2012 2013

-6.0%

-4.0%

-2.0%

0.0%

2.0%


Total Employment Growth Trends Metro vs. Region & U.S.

Per

cent

age

Cha

nge


2009 2010 2011 2012 2013

1.10%

1.20%

1.30%

1.40%

1.50%

1.60%

1.70%

Population Households

San Bernardino/Riverside Population/Household Growth Trends

Per

cent

age

Cha

nge






Section 39 - Metro Area Map: San Bernardino/Riverside

San Bernardino/Riverside Submarkets

1 Upland 2 North Ontario 3 South Ontario/Chino

4 Rancho Cucamonga 5 Fontana/Rialto 6 San Bernardino

7 Colton/Loma Linda 8 Riverside County/Corona 9 Riverside/North Magnolia

10 University City/Moreno Valley 11 SW Riverside County 12 Victorville

13 Perris 14 Palm Springs/Palm Desert 16 Hemet

17 Indio/La Quinta/Coachella

Click here for a glossary of terms, or go to https://www.reisreports.com/ReisSEGlossary.pdf





https://www.reisreports.com/ReisSEGlossary.pdf

1 Reis, Inc. 530 Fifth Avenue, 5th Floor • New York, NY 10036 • T 212.921.1122 • F 212.921.2533 • www.reis.com

Glossary

1031 Exchange: The exchange, under Section 1031 of the Internal Revenue Code, of a real property held for investment or used in a trade or business, for a similar property; it allows the property holders to defer capital gains.

1031 Replacement Property: A property purchased with the proceeds from the sale of another property recently sold by the buyer, so as to qualify the sale and subsequent purchase as a 1031 exchange.

25%: The value (rent, vacancy, et. al.) associated with the building at the 25th percentile of the distribution of building size.

75%: The value (rent, vacancy, et. al.) associated with the building at the 75th percentile of the distribution of building size.

Absorption/Occupied Stock %: Absorption during the time period divided by occupied stock at the end of the time period.

Additional Income: Building revenue resulting from sources other than primary property type rents. Examples include rent revenue from space that is part of the building but is of a different rental type (i.e. ground floor retail in an office building), and income from vending machines, parking garages, billboards/signage, gym and other facilities fees, telephone or ATM access fees, and roof antennas.

Affiliated Parties: A buyer and seller who are related by blood, marriage or corporate structure,such as a parent and sibling or a corporation and its subsidiary.

Amortization: The process of retiring a debt or recovering capital investment through scheduled systematic repayment of the principal.

Anchor Lease Length (years): The average term (in years) currently being quoted for new anchor leases in this submarket.

Anchor Tenant: The store(s) and other users (e.g., movie theatres) that generally occupy the largest spaces in terms of square footage and serve as the primary draw of customers in a shopping center. Typical anchors are supermarkets, drug stores and department stores.

Annual Additional Income: Building revenue resulting from sources other than apartment unit rents. Examples include rent revenue from parking fees, laundry facilities, and vending machines.

Annual Cash Flow: Net Cash Flow generated by the subject property during the indicated period; typically a full year, except in the first period which is a remainder- of-year amount.

Annual Credit Cost (Expected Loss): The product of Annual Probability of Loss and Loss Given Default, this is a number that expresses the average or expected credit cost each year of the loan.

Annual Probability Of Loss/Default: Annualization of the Cumulative Probability of Loss/Default, assuming equal loss exposure through scheduled maturity. Calculated as 1-((1-C)^(1/m)), where C is the Cumulative Probability of Loss/Default and m is the number of years through scheduled maturity.

APD: Indicates that the sale price has been apportioned based on the size of each building included in a multiple property transaction. When information on total units is not available, sale price is apportioned based upon the square footage of all buildings included in the transaction.

APX: Indicates that the sale price is approximate.

Arms Length Transaction: A transaction between unrelated parties under no duress.

Asking Rent % Change: Percent change in asking rent from the previous time period.

Asking Rent: For retail and industrial properties, rent is a weighted average quoted as monthly NNN rent per square foot. Office properties are a weighted average quoted as monthly gross rent per square foot. For apartment properties, rent is a weighted average quoted as monthly gross rent per unit.

Asset Class: An overall indicator of both a property’s physical condition and operating performance, where A properties tend to be the best in the market, have above average design, construction and finish, minimal or no deferred maintenance, superior locations, achieve the highest rents, and have tenants of strong credit quality; B properties tend to be in good to above average condition, have adequate construction but do not have design and finish reflective of the latest standards and preferences, have above average locations, are generally well maintained, and command average rents; C properties tend to be in average condition, exhibit some deferred maintenance, provide functional space for tenants, have less desirable locations, are usually managed by small local companies with limited experience, command below average rents, and have tenants of lower credit quality that provide a less stable income stream.


Glossary

Average Household Income: The average income per household as defined by the US Bureau of the Census.

Bankruptcy: Indicates that the seller was operating under Chapter 7 or 11 bankruptcy protection at the time of sale.

Building Area: The total area of the building(s) included in the transaction, expressed in square feet. May represent NRA, GBA, or unspecified building area.

Buyer: The person or entity to whom property rights were transferred; the grantee.

Buyer’s Broker: An intermediary in the transaction who represented the interests of the buyer.

Capital Reserve: An allowance that provides for the periodic replacement of building components that wear out more rapidly than the building itself and must be replaced during the building’s economic life.

Center Type: Shopping center type as generally defined by ICSC and NAREIM, PREA, NCREIF Real Estate Information Standards.

Climate Controlled Units (CC): Storage area that is specifically designed to regulate the temperature and humidity by a heating and cooling system.

Community Shopping Center: A retail property offering a wider range of apparel and general merchandise than a neighborhood center. Discount department stores (e.g., Wal-Mart, Kmart and Target). The gross leaseable area generally runs from 100,000 square feet to 350,000.

Competitive Inventory: The total square footage or total number of units or square footage of completed properties that are competitively rented. Competitive properties for Office: multi- and single-tenant 15,000+ sqft, Retail: neighborhood and community shopping centers 10,000+ sqft. Industrial: warehouse/distribution and flex/r&d space 10,000+ sqft properties, Apartment: 40+ units (tertiary markets and markets within California and Arizona, REIS includes apartment complexes of 20+ units). Owner-occupied, medical office buildings, cooperatives, condominiums, furnished rental apartments, federally subsidized housing units, and buildings under construction are excluded from the inventory.

Completions: The amount of new space added to market inventory during the time period indicated.

Condominium Building: A multi-unit structure or property in which persons hold fee simple “Title” to individual units and an undivided interest in common areas.

Construction/Absorption: Construction (i.e. Completions) during the time period divided by absorption during the same time period.

Contract Rent Discount (CRD): The average percentage discount offered by building owners/managers from the market asking rent to final negotiated contract rent.

Credit Loss: The total amount of rent due that the landlord is unable to collect due to tenant default.

Cumulative Market Share: The cumulative percentage of anticipated deliveries based on the running total of projects for the listed submarkets.

D: Indicates that tenant is a drug store.

Data as of: Reis’s most recent quarterly update to this peer’s record of information.

Deed Reference: A filing number that provides a means of retrieving the deed in the public record. Usually in the form of the book number and page number under which the deed has been filed by the recorder.

Distance from Subject: Distance, in miles, from the peer property to the subject property.

Distance to CBD: Distance, in miles, to the Metro’s Central Business District.

Distance to Highway: Distance, in miles, to the closest US Highway.

Distance to Landmark: Distance, in miles, to a Reis- defined landmark such as a geographical point, airport or local attraction.

Downside Scenario 1: Reis’s moderate downside forecast for the indicated years. The primary inputs to the forecast are Reis’s comprehensive monitoring of new construction projects, our deep history of property and market performance through several business cycles, and the Moody’s “deep second recession” downside forecast.

Downside Scenario 2: Reis’s more severe downside forecast for the indicated years. The primary inputs to the forecast are Reis’s comprehensive monitoring of new construction projects, our deep history of property and market performance through several business cycles, and the Moody’s “protracted slump” downside forecast.

Effective Gross Revenue: The sum of effective rent revenue and additional income, less free rent concessions and credit loss.


Glossary

Effective Rent % Change: Percent change in effective rent from the previous time period, allowances and waived fees. In apartment properties, the average market rent, less the present value over the lease term of free rent.

Efficiencies: Apartment units with an efficiency, or studio, configuration (no separate bedrooms).

Enclosed Shopping Center: A center which has a walkway or mall that is enclosed, heated and cooled, insulated and lighted. The mall corridor has storefronts on one or both sides.

EST: Indicates that the sale price is estimated.

Estimated Completion (Month): Month of anticipated or actual completion.

Estimated Completion (Year): Year of anticipated or actual completion.

Estimated Going-in Cap Rate: An overall capitalization rate obtained by dividing the projected net operating income for the first full calendar year of ownership by the purchase price.

Expenses: The average annual cost, per square foot or per unit, of operating buildings in the REIS submarket survey sample, including property taxes, energy, janitorial service, insurance, general building maintenance, management and leasing fees, and other expenses.

Federally Subsidized: An apartment property at which some, or all, of the units are occupied by tenants who participate in Federal programs, such as Section 8.

Financing Details: Information regarding how the purchase was financed. May include lender, loan amount, interest rate and term.

Foreclosure Sale: A sale resulting from the exercise of the optional right of the mortgagee or lending institution to sell mortgaged property if the mortgagor fails to make payment, applying proceeds from the sale toward the outstanding debt.

Free Rent Concessions: The total dollar amount or number of months of free rent granted by the landlord per lease term (usually 12 months in apartment properties, longer in office and retail properties).

Flex/R&D: An industrial building with a minimum total office percentage of 25% and consisting of either Warehouse/Distribution and/or specialty industrial space; such as Research & Development and High-Tech space. Other building characteristics will be consistent with Warehouse/

Distribution properties such as loading docks, dock-high doors, and high clear heights, with an addition of high-tech characteristics such as non-medical labs, showrooms, and retail. Excluded are Office Showroom, Light Manufacturing, Medical Research Laboratories, Incubator Laboratories, Medical Centers/Offices, Retail Showrooms, Data Storage Centers.

G: Indicates that tenant is on a ground lease at the peer property.

GBA: Gross Building Area of the building(s) included in the transaction, expressed in square feet.

Gross Revenue Point Change: Percent change in Gross Revenue per unit from the previous time period.

Households: The number of occupied housing units, as defined by the U.S. Bureau of the Census.

In Place Rent: Weighted average rent of all existing leases in a property during the indicated year, expressed per unit per month.

Industrial Employment: The total number of persons employed in construction, manufacturing, transportation, and public utilities.

Interest Purchased: The share of the property that was purchased in the transaction. A figure of less than 100% indicates purchase of a fractional interest.

Inventory (Buildings): Estimated total number of competitive properties based on the REIS database. For size, age, and rent peers, represents the number of buildings sampled within the peer range.

Inventory (Units/Sq. Ft.): Estimated total square footage or units in competitive properties based on the REIS database. For size, age, and rent peers, represents the total square footage or units sampled within the peer range.

Inventory Growth %: Percent change in total inventory from the previous time period.

Latitude: Property’s latitude based upon street address.

Lease Term: The average term currently being quoted for new leases (in years).

Leasing Commission: An amount paid to a real estate broker in exchange for bringing a tenant and landlord together to form a lease agreement. Usually paid in the form of a percentage of the yearly rent.


Glossary

Longitude: Property’s longitude based upon street address.

Lot Size: The total area of all land included in the purchase, expressed in square feet and acres.

Lstg: Indicates that the broker was the listing broker in the sale.

Market Rate Rental: An apartment property at which rents are set primarily by market forces, with no significant influence from rent regulations.

Market Rent % Change: The percent increase or decrease in the market rent rate between REIS survey periods.

Market Rent: The annual weighted average asking rent per square foot (or per unit for apartments). For commercial space, rent is on a gross basis and includes expenses.

Market Share: The submarket’s share of the entire market’s anticipated deliveries.

Market: Geographical division of the US encompassing major city and its surrounding communities/counties. A Metropolitan Statistical Area (MSA).

Mean: Average value for the applicable variable.

Median: Median value (50th percentile) for the applicable variable.

Metropolitan Area: Geographical division of the United States encompassing a major city and its surrounding communities/counties.

Neighborhood Shopping Center: A shopping complex constructed around a supermarket and/or drug store as the only anchor tenant(s). It provides for the sale of convenience goods and personal services for the day-to-day living needs of the immediate neighborhood. The gross leaseable area typically ranges from 30,000 square feet to 150,000 square feet.

Net Absorption: Net change in occupied space during the applicable time period. Pre-leased space in buildings under construction is not included in order to avoid double counting of tenants in the process of moving within the market Net Operating Income: Effective gross revenue, less operating expenses and capital reserve.

Non anchor Lease Length (years): The average term (in years) currently being quoted for new nonanchor leases in this submarket.

Non-Climate Controlled Units (NCC): Storage units that have no heating or cooling system but may have humidity controls.

NRA: Net Rentable Area of the building(s) included in the transaction, expressed in square feet.

Number of Bldgs.: The total number of buildings included in the particular property at a single location. Does not include buildings at other locations, which might have been purchased simultaneously as part of a portfolio.

Number of Floors: The total number of floors, or stories, comprising a building. For sales involving multiple buildings, the total number of floors of the tallest structure included in the sale.

O: Indicates that tenant is located on an outparcel at the peer property.

Occupied Stock: Amount of occupied inventory at the end of the applicable time period.

Office Employment: The number of persons employed in the finance, insurance and real estate (FIRE) industries as service industries.

Operating Expenses/Ratio: Expenditures for ongoing costs of operating a building, including maintenance and repairs, insurance, administrative fees and real estate taxes; expressed as an annual dollar amount or as a percent of potential rent revenue.

Other Broker: An intermediary in the transaction, where it is unclear whether they represented the interests of the buyer, seller, or both.

Parcel Number: A code number that serves as an abbreviation of, or replacement for, a parcel’s legal description.

Planned/Proposed/Completed: Total size of all projects currently planned, proposed or anticipated for completion during the applicable year.

Population: Total number of inhabitants in the defined geographic area as defined by the U.S. Bureau of the Census.

Potential Rent Revenue: The sum of in place rent multiplied by currently occupied units or square feet, plus market rent multiplied by vacant units or square feet.

Power Center: A collection of three or more anchor stores generally located within a center larger than 250,000 square feet, and where the total anchor space accounts for 75% or more of the center’s total area.


Glossary

Price Per Unit or Square Foot: The purchase price of the property divided by the total number of apartment units or square feet included in the sale.

Property Name: When applicable, the name by which the property was known at the time of sale.

Property Type: See Market Rate Rental, Rent Regulated, Federally Subsidized, Condominium Building, and/or Senior Housing.

Quarter: 1,2, 3 or 4 to denote the applicable 3 month period or Y for an annualized number.

Rec: Indicates that the sale date is actually a recording date.

Refereed: Indicates that the sale occurred pursuant to a declaration by a judge or arbitrator.

Region: Any of 5 geographical divisions of the US encompassing: Northeast, South Atlantic, Midwest, Southwest and West.

Regional Center: A shopping center whose main attractions are its anchors: traditional department stores (e.g., Macy’s Filenes), mass merchant department stores (e.g., Sears, J.C. Penny), or fashion specialty stores (e.g., Neiman Marcus, Nordstrom). Typically enclosed and connected by a common walkway. Gross leaseable area generally at least 400,000 square feet.

Reis Cap Rate Analysis Proforma: An analysis which projects income and expenses for the first full calendar year of ownership of the property after the indicated sale date, and which results in a projected net operating income that is then divided by the sale price to obtain an estimated going-in cap rate. Note that projection of revenue relies largely on a rent roll that Reis estimates based on rents, vacancies and expenses observed during several years of surveys at the property or at nearby properties.

Reis Indexed Metro Apt Cap Rate: Cap rates are calculated by Reis based on conditions in each metro and are updated quarterly. Cap rates are modeled as a function of risk-free interest rates, metro level in-place rent growth expectations, current construction activity, and by running measures of volatility in rents and metro level economic and demographic factors. Together, these measures are proxies for capital conditions, income expectations, and risk. The model was developed using data from actual transactions.

Rent Regulated: An apartment property at which most, or all, of the units are subject to local regulations that stipulate the amount of rent that may be charged.

Reported Cap Rate, This Sale: A capitalization rate reported by the buyer, seller or other party to the transaction, or calculated by dividing reported net operating income by the purchase price.

S: Indicates that tenant is a supermarket or grocery store.

Sale Date: The specific date on which the transaction closed; and, only when indicated by the superscript Rec to the right of the date, the date on which the transaction was recorded by the county recorder.

Sale Price PSF: The purchase price of the property per square foot of net rentable area (indicated by NRA), and/or gross building area (indicated by GBA) and/or unspecified building area (no indicator).

Sale-Leaseback Transaction: A financing arrangement in which real property is sold by its owner-user, who simultaneously leases the property from the buyer for continued use by the seller.

Secondary Type: Denotes various non-competitive property types similar to the applicable sector, e.g. condominiums, senior citizen housing, government office space, etc.

Self storage: Facilities offering rentals on a month-to-month basis where the tenant applies the lock and has sole access to the unit. A self storage facility may also have outside parking for boats and motor vehicles.

Seller’s Broker: An intermediary in the transaction who represented the interests of the seller. May, or may not, be the broker who obtained the listing contract.

Senior Housing: A multifamily property which is designed, configured and operated for occupancy by the elderly. Includes independent living and assisted living facilities.

Size (Sq. Ft./Units): The size, in square feet or total number of units, of a property.

Sq Ft Absorbed (Annualized): Average annual amount of existing stock absorbed during specified years.

Sq Ft Absorbed (Quarterly): Amount of existing stock absorbed during the quarter.

Sq Ft Built (Annualized): Average annual amount of new stock built during the specified years.

Sq Ft Built (Quarterly): Size of new stock built during the quarter.


Glossary

Strip Center: A shopping center that typically consists of a straight line of stores with a common parking area. Stores are entered individually from the parking lot through outside entrances. The anchor tenant may be a supermarket, discount store, major department store, or a specialty retailer. The center usually ranges in size from 30,000 to 250,000 square feet.

Studio: Studio apartment.

SubID: Reis code for the applicable submarket.

Submarket Expense Ratio: The average annual cost of operating multifamily buildings in the applicable submarket area. Includes property taxes, energy, janitorial service, insurance, general maintenance and management. Operating expense information is expressed as a percentage of gross potential revenue.

Subsector: A sub categorization that applies to “Retail” and “Industrial” sectors “Retail” sectors can be further broken down by “Anchor” and “Non-Anchor,” and “Industrial” sectors can be broken down by “Warehouse” and “Flex.”

Tenant Improvements: The average value granted to a new tenant by an owner for work done on previously occupied space throughout the REIS submarket survey sample (expressed as dollars per square foot per lease term).

Total employment: Total non-agricultural employment.

Triple Net Lease: A lease agreement in which the tenant pays contract rent to the landlord, and, in addition, separately pays the operating expenses of the property. Specifically, the triple expenses for which the tenant pays.

Under Construction: Total size of all projects currently under construction anticipated for completion during the applicable year.

Unit Mix Inventory Details: “3 BR+” is inclusive of all three or more bedroom type units. All rents and sizes listed elsewhere for “3 BR” are for three bedroom units exclusively.

Unit Size (SF): Weighted average unit size in square feet.

Unspecified Building Area: The size of the building in square feet when there is either unclear or conflicting information between various sources as to whether that size represents net rentable area or gross building area.

Vacancy % Point Change: Percentage point change in the Vacancy rate from the previous period.

Vacancy Loss: Loss of potential rent revenue attributable unoccupied space, expressed as a total dollar amount per year.

Vacancy Rate: Amount of available space expressed as a percentage of total inventory.

Vacant Stock: Amount of available inventory at the end of the time period.

Verified: Buy Attny: Indicates that the sale price and other details have been verified with the buyer’s attorney.

Verified: Buy Brkr: Indicates that the sale price and other details have been verified with the buyer’s broker.

Verified: Buyer: Indicates that the sale price and other details have been verified with the buyer.

Verified: Lstng Brkr: Indicates that the sale price and other details have been verified with the listing broker.

Verified: Other Pty: Indicates that the sale price and other details have been verified with a reliable party to the transaction other than a buyer or seller, or their brokers or attorneys. Such parties include lenders and property managers.

Verified: Pub Rcrd: Indicates that the sale price and other details have been verified in an assessor and/or deed recorder record, or in an official public document such as a filing with the Securities and Exchange Commission.

Verified: Sel Attny: Indicates that the sale price and other details have been verified with the seller’s attorney.

Verified: Sel Brkr: Indicates that the sale price and other details have been verified with the seller’s broker.

Verified: Seller: Indicates that the sale price and other details have been verified with the seller.

Warehouse/Distribution: An industrial building or facility primarily used for storage and/or distribution of goods, including smaller regional warehouses, larger bulk warehouses, and heavy distribution centers. Building characteristics will include loading docks, dock-high doors, drive-in doors, high clearance heights, low percentage of office space--typically below 25% of overall total square footage. Excluded characteristics are cold-storage facilities, self-storage facilities, and truck terminal hubs.


Glossary

Y-B: Reis’s baseline forecast for the indicated year. The primary inputs to the forecast are Reis’s comprehensive monitoring of new construction projects, our deep history of property and market performance through several business cycles, and the Moody’s baseline macroeconomic forecast.

Y-S1: Reis’s moderate downside forecast for the indicated year. The primary inputs to the forecast are Reis’s comprehensive monitoring of new construction projects, our deep history of property and market performance through several business cycles, and the Moody’s “deep second recession” downside forecast.

Y-S2: Reis’s more severe downside forecast for the indicated year. The primary inputs to the forecast are Reis’s comprehensive monitoring of new construction projects, our deep history of property and market performance through several business cycles, and the Moody’s “protracted slump” downside forecast.

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