TERI PLACE APARTMENTS2117 Teri Place,

Fullerton, CA 92831A 4-Unit Multi-Family Community

EXCLUSIVELYLISTED BY:

Greg BassirpouFirst Vice President InvestmentsSenior Director, 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

AGREEMENT

The 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 Z0000000

NON-ENDORSEMENT NOTICE

Marcus & 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.

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

TABLE OF CONTENTS

04 PROPERTY DESCRIPTION

14 FINANCIAL ANALYSIS

16 MARKET COMPARABLES

20 MARKET OVERVIEW

4 PROPERTY DESCRIPTION

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The Teri Place Apartments is a four-unit apartment building located in the City of Fullerton, one of the strongest rental markets in Southern California. The city of Fullerton is a dynamic city in Orange County with a vibrant downtown located in Orange County, approximately 25 miles southeast of downtown Los Angeles.

The property offers an attractive unit mix consisting of (2) three bedroom/ one & one-half bathroom Townhouse style units and (2) two bedroom/ one-bathroom units totaling 4,527 square feet, situated on a 6,966 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, and new bathrooms. Common area amenities include a shared patio/deck, enclosed garages, and on-site laundry room.

Teri Place’s close proximity to Cal State Fullerton provides a large pool of potential student renters looking for convenient, quality housing. This offering represents a rare opportunity for an investor to acquire a 5.5% Cap Rate /10% total return for a stable, renovated, “A” location investment property in the solid rental market of Fullerton, California.

VITAL DATAPrice $1,565,000

Down Payment 25% / $391,250

Loan Amount $1,173,750

Loan Type New

Interest Rate / Amortization 4.00% / 30 Years

Price/Unit $391,250

Price/SF $346

Number of Units 4

Rentable SF 4,527 SF

Year Built/Renovated 1964

Lot Size 6,966 SF

Parcel Number 337-092-09

FINANCIAL HIGHLIGHTSCURRENT MARKET

CAP Rate 5.50% 5.87%

GIM 13.31 12.66

Net Operating Income $86,029 $91,849

Net Cash Flow After Debt Service 4.80% / $18,785 6.29% / $24,605

Total Return 10.08% / $39,455 11.79% / $46,117

UNIT MIXNUMBER OF UNITS UNIT TYPE APPROX. SF

2 3 Bed / 1.5 Bath(Townhouse) 1,250

2 2 Bed / 1 Bath 1,013

4 4,527

5PROPERTY DESCRIPTION

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PROPERTY HIGHLIGHTS

• Walking Distance to Cal State Fullerton• 100% Large Two- and Three-Bedroom Units• Current 5.5% CAP Rate and 10% Total Return• Recent Extensive Renovations & Upgrades of Interiors

and Exterior• Garage Parking & Building Owned On-Site Laundry

Room• Separately Metered for Gas and Electric• Close to Cal State Fullerton, Downtown Fullerton,

Major Retail, & Employment• Attractive Financing Available• No Rent Control

AREA HIGHLIGHTS

HIGHLY DESIRABLE TRADE AREA

Fullerton is the sixth or seventh largest community in Orange County California with a Median Household Income exceeding $71,000 and a Median Property Value of more than $589,000.

HISTORIC COMMUNITY

The Historic Downtown District is home to numerous restaurants, clubs, antique shops, and clothing stores. Residents enjoy everything from fast-food favorites to five-star gourmet establishments to the award-winning Fullerton Museum Center.

WIDELY RECOGNIZED EDUCATION SYSTEM

Known as “The Education Community”, Fullerton is home to award-winning public school systems and five universities/colleges, including California State University, Fullerton.

STRONG AND STABILIZED TENANT BASE

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

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SUBJECT PROPERTY

ASSOCIATED ROAD

CSU FULLERTON57 FREEWAY

FULLERTON ARBORETUM

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ASSOCIATED ROAD

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FINANCIAL SUMMARYPrice $1,565,000Down Payment 25% / $391,250Loan Amount $1,173,750Interest Rate / Amortization 4.00% / 30 YearsLoan Term 5 Years FixedPrice/Unit $391,250Price/SF $346

RETURN SUMMARYCURRENT MARKET

CAP Rate 5.50% 5.87%GIM 13.31 12.66Cash-on-Cash 4.80% 6.29%Total Return 10.08% 11.79%

OPERATING INCOME - ANNUALIZEDCURRENT MARKET

Gross Scheduled Rent $115,200 $121,200Total Other Income (Laundry) $2,400 $2,400Gross Potential Income $117,600 $123,600Less: Vacancy/Concessions 3.00% / $3,528 3.00% / $3,708Effective Gross Income $114,072 $119,892Less: Expenses 24.58% / $28,043 23.39% / $28,043NET OPERATING INCOME $86,029 $91,849Cash Flow $86,029 $91,849Debt Service $67,244 $67,244NET CASH FLOW AFTER DEBT SERVICE 4.80% / $18,785 6.29% / $24,605Principal Reduction $20,670 $21,512TOTAL RETURN 10.08% / $39,455 11.79% / $46,117

OPERATING EXPENSES - ANNUALIZEDCURRENT MARKET

Property Taxes & Assessments $17,743 $17,743Insurance $1,600 $1,600Utilities $4,000 $4,000Repairs & Maintenance $2,000 $2,000Landscaping $1,200 $1,200Operating Reserves $1,000 $1,000Miscellaneous $500 $500TOTAL EXPENSES $28,043 $28,043EXPENSES/UNIT $7,011 $7,011

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

3 Bedroom / 1.5 Bath (Townhouse) 2 1,250 $2,600 $5,200 $2,750 $5,5002 Bedroom / 1 Bath 2 1,013 $2,200 $4,400 $2,300 $4,600TOTAL FIGURES 4 4,527 $9,600 $10,100GROSS ANNUALIZED RENTS $115,200 $121,200

BUILDING SUMMARYProperty Address 2117 Teri Pl., Fullerton, CA 92831Number of Units 4Year Built/Renovated 1964Rentable SF 4,527 SFLot Size 6,966 SFParcel Number 337-092-09Zoning R-3

13FINANCIAL ANALYSIS

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UNIT UNIT TYPECURRENT

RENT / MONTHMARKET

RENT / MONTHA 3 Bedroom / 1.5 Bath

(Townhouse)$2,600 $2,750

B 3 Bedroom / 1.5 Bath(Townhouse)

$2,600 $2,750

C 2 Bedroom / 1 Bath $2,200 $2,300

D 2 Bedroom / 1 Bath $2,200 $2,300

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

$2,000

$2,100

$2,200

$2,300

$2,400

$2,500

$2,600

$2,700

0 0

1.5 Bath 1 Bath

3 Bed 2 Bed

Unit Rents

Rental Range Rent/SF

No. of Units

3 Bed 1.5 Bath 0 2 Bed 1 Bath 0

UNIT RENTUNIT DISTRIBUTION

14 MARKET COMPARABLES

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1In Escrow $1,565,000 $391,250 $410 5.16% / 16.05 1965

4 Units - Featuring 100% 2 Bed/ 2 Bath unit(s).3149 Pearl Dr.

Fullerton, CA 92831

24/15/2019 $1,610,000 $402,500 $307 3.76% / 17.67 1966

4 Units - Featuring (1) 3 Bed/ 2 Bath and (3) 2 Bed/ 2 Bath unit(s).2733 Santiago Rd.

Fullerton, CA 92835

38/31/2018 $1,500,000 $375,000 $333 4.41% / 18.22 1992

4 Units - Featuring 100% 2 Bed/ 2 Bath unit(s).517 Williamson Ave.

Fullerton, CA 92832

49/14/2018 $1,570,000 $392,500 $314 3.71% / 16.40 1966

4 Units - Featuring (1) 3 Bed/ 2 Bath and (3) 2 Bed/ 2 Bath unit(s).2800 Brea Blvd.

Fullerton, CA 92835

PROPERTY COESALE

PRICEPRICE/

UNITPRICE/

SFCAP/GRM

YEAR BUILT

Subject Property - $1,565,000 $391,250 $346 5.50% / 13.31 1964

4 Units - Featuring (2) 3 Bed/ 1.5 Bath and (2) 2 Bed/ 1 Bath unit(s). 2117 Teri Pl.

Fullerton, CA 92831

16 MARKET OVERVIEW

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RENTAL MARKET

The Fullerton rental market is a strong performing 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

Fullerton consists of major employers and retailers and demonstrates a rapidly growing population. Some of the most notable employers include, but are not limited to: California State University Fullerton, St. Jude Medical Center, and Raytheon.

Apart from its notable employers, Fullerton offers a unique mix of retail shops, restaurants, and cultural attractions. From the natural beauty of the Fullerton Arboretum to the hustle and bustle of historic downtown Fullerton, there’s an abundance of boutique shops, unique restaurants, and various other attractions and events for the whole family.

California State University Fullerton

Fullerton Arboretum

SOCO District

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Downtown Fullerton

DEMOGRAPHICS

Spanning across 22.4 square miles and boasting a population of over 140,000 residents. Fullerton is the sixth or seventh largest community in Orange County California with a Median Household Income exceeding $71,000 and a Median Property Value of more than $589,000.

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

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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

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

million workers.• The aerospace and technology industries make up a significant por-

tion 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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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

QUALITY OF LIFE

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

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

SPORTS

EDUCATION

ARTS & ENTERTAINMENT

SPORTS

EDUCATION

ARTS & ENTERTAINMENT

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

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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 InvestmentsSenior Director, National Multi-Housing GroupNewport Beach OfficeTel: (949) 419-3234Cell: (714) 608-3255greg.bassirpou@marcusmillichap.comLicense: CA 01365951