Project Highlights

PROPERTY LOCATION: 938 N. Fig Street, Escondido, CA

PROPERTY DESCRIPTION: Fourteen (14) three (3) BR units on a 36,155 SF parcel

PURCHASE PRICE: $2,550,000 ($182,142.85 per unit), all cash

CAP RATE: 6.35%

GRM: 10.64


REFINANCING SCENARIO: Scheduled to occur in Year 3 (March, 2014)

HOLD PERIOD: Between 5-8 Years

OCCUPANCY HISTORY: 100% for 2012

RENT INCREASES: Increase rate by 3-5% by year 2

MANAGEMENT HIGHLIGHTS: To be determined upon anniversary of purchase

PROJECTED DISPOSITION: Project has been pre-approved for a condo conversion; will convert to condominiums upon disposition which is expected to increase the IRR to approximately 13-17%.