CRESTVIEW NORTH APARTMENTS & CRESTVIEW TOWNHOMES

WINDING WAY

CAN BE PURCHASED SEPARATELY OR AS A PORTFOLIO

• Excellent value-add opportunity

• Loss to lease exceeding 55% from full renovation over current rent roll

• Sacramento apartment rents continue to rise - leading the nation in rent growth for the last 2 years - increasing by 31.2% over the last 3 years

• Excellent submarket fundamentals, no new construction scheduled

• Submarket led the Sacramento region in rent growth in 2017; a time when Sacramento led the nation in rent growth

• Large floor plans, averaging over 1,000 square feet which is significantly larger than surrounding properties

• Amenity rich location in the heart of Sacramento’s suburban residential market

OFFERING HIGHLIGHTS

Crestview North

Apartments

Crestview Townhomes

CRESTVIEW NORTH APARTMENTS - 151 UNITS4494 MARY LYNN LANE, CARMICHAEL, CA 95608

CRESTVIEW TOWNHOMES - 50 UNITS5925 RAMPART DRIVE, CARMICHAEL, CA 95608

THE OFFERING

Crestview North Apartments and Crestview Townhomes represent well located apartment communities with attractive value add components which provide the opportunity to achieve above market returns for a multi-family asset in Sacramento’s dynamic market..

The properties are being offered for sale individually or on a portfolio basis.

Crestview North Apartments and Crestview Townhomes are located in well-established Northeast Carmichael/West Fair Oaks submarket of Sacramento. This submarket has led the Sacramento region in rent growth in 2017; a time when Sacramento led the nation in rent growth. There is no new construction planned within an 8 mile radius of the properties, further enabling them to continue their strong rent growth for the foreseeable future.

The rent comparable survey found in the Offering Memorandum shows the market’s support for renovated properties with average rents ranging from $400 to more than $600 per unit/per month higher than Crestview North Apartments and Crestview Townhomes current rent roll.

Crestview Townhomes

Crestview North Apartments Unit MixType #Units Square Feet

1 Bed/1 Bath 56 725

2 Bed/1.25 Bath 59 1,043

2 Bed/1.5 Bath 25 1,397

2 Bed/2 Bath 1 1,088

3 Bed/2 Bath 10 1,357

Total/Average 151 1,005

Crestview Townhomes Unit MixType #Units Square Feet

2 Bed/2.5 Bath 40 1,203

2 Bed/2.5 Bath 10 1,250

Total/Average 50 1,212

Crestview North Apartments

SACRAMENTO REGION RENT GROWTH

The Sacramento Multi-Family market has led the Nation in rent growth in 2016 and 2017. Sacramento’s 9.1% growth in 2017 far outpaced the National average of 2.5% and has grown more than 31% over the last three years. Even given the tremendous rent growth during this period, average rents have only recently matched the Nation’s average rents.

Year-Over-Year Apartment Rent Growth

LOCATION OVERVIEW

Crestview North Apartments and Crestview Townhomes are located in Carmichael, an established neighborhood community just twelve miles east of Downtown Sacramento. The area borders the Arden-Arcade, Citrus Heights, and Fair Oaks neighborhoods which have some of the most expensive single family homes in the Sacramento region. The properties are centrally located between two major highways and in close proximity to American River College, the Sunrise Marketplace, Mercy San Juan Medical Center, and an abundance of shopping and outdoor recreation options.

Within a 3 mile radius of Crestview North Apartments and Crestview Townhomes is 6.67 million square feet of retail space as well as 2.62 million square feet of office space. Mercy San Juan Medical Center also falls within this radius and, when combined with nearby Kaiser Permanente, accounts for roughly 1,790 jobs. Downtown is Sacramento’s largest office submarket with over 19 million square feet of office space and is located twelve miles to the East, while the Highway 50 Corridor submarket with over 17 million square feet of office space is less than 5 miles south of the properties.

Crestview

GARY GALLELLIPresidentManaging DirectorCA DRE #01099383(916) 784-2700Gary@GallelliRE.com

PAT RONANAssistant Vice PresidentInvestment GroupCA DRE #01410074(916) 784-2700Pat@GallelliRE.com

Sacramento’s population has been steadily increasing every year primarily driven by Bay Area families relocating to more affordable communities. From 2013 thru 2017 Sacramento has added over 132,000 residents. The Sacramento market is made up of approximately 41% renters and 59% home owners. The 2017 national average of residents per household is 2.5. If we assume roughly 70% of the renters are apartment dwellers, then this equates to a rental demand for 15,231 new apartment units during this time (not accounting for pent-up demand prior to 2013 or housing attrition). During this same time period Sacramento added only 3,337 units with approximately 650 units being college housing.

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2013 2014 2015 2016 2017

Uni

ts

Year

ApartmentDemand vs Completions

Demand Completions

Sacramento Population GrowthNew Apartment Unit Demand vs. New Apartment Completions

Year 2012 2013 2014 2015 2016 2017 Totals

Sacramento Metro Population

2,193,741 2,214,570 2,240,391 2,267,588 2,296,418 2,326,418

Population Growth 20,829 25,821 27,197 28,830 30,000 132,677

Required Annual New Units

2,391 2,964 3,122 3,310 3,444 15,231

Completed Annual New Units

728 276 1,096 582 655 3,337

Annual Unit Shortfall

1,663 2,688 2,026 2,728 2,789 11,894

Source: US Census, Moody's Analytics / 2017 Population Growth is Estimated

GALLELLI REAL ESTATE3005 Douglas Blvd. #200Roseville, CA 95661(916) 784-2700www.gallellire.com

FOR MORE INFORMATION CONTACT US TODAY

Crestview North Apartments

MULTI-FAMILY REGIONAL DEMAND VS. SUPPLY