Offering Memorandum

Multi-Family InvestmentsOffering MemorandumEnchanted Place 1 Shelley Drive, Mill Valley, CANorthern California’s Source for Apartment Brokerage ServicesScott GerberSenior Vice President415-451-2415scott.gerber@ctbt.comLIC #01138762San Rafael Office | Santa Rosa Officeph: 415-485-0500 | fx: 415-485-1341Cassidy Turley Northern Californiawww.scottgerber.com

Multi-Family InvestmentsEnchanted Place Mill Valley,CACassidy Turley BT Commercial (“Broker”) has been retained on anexclusive basis to market the property described herein (“Property”).Broker has been authorized by the Seller of the Property (“Seller”) toprepare and distribute the enclosed information (“Material”) for thepurpose of soliciting offers to purchase from interested parties. Moredetailed fi nancial, title and tenant lease information may be madeavailable upon request following the mutual execution of a letter ofintent or contract to purchase between the Seller and a prospectivepurchaser. You are invited to review this opportunity and make an offerto purchase based upon your analysis. If your offer results in the Sellerchoosing to open negotiations with you, you will be asked to provide financial references. The eventual purchaser will be chosen based upon anassessment of price, terms, ability to close the transaction and such othermatters as the Seller deems appropriate.The Material is intended solely for the purpose of soliciting expressionsof interest from qualified investors for the acquisition of the Property.The Material is not to be copied and/or used for any other purpose ormade available to any other person without the express written consentof Broker or Seller. The Material does not purport to be all-inclusive or tocontain all of the information that a prospective buyer may require. Theinformation contained in the Material has been obtained from the Sellerand other sources and has not been verified by the Seller, its affi liatesor Broker. The pro forma is delivered only as an accommodation andneither the Seller, Broker, nor any of their respective affi liates, agents,representatives, employees, parents, subsidiaries, members, managers,partners, shareholders, directors, or officers, makes any representationor warranty regarding such pro forma. Purchaser must make its owninvestigation of the Property and any existing or available financing, andmust independently confirm the accuracy of the projections contained inthe pro forma.Seller reserves the right, for any reason, to withdraw the Property from themarket. Seller has no obligation, express or implied, to accept any offer.Further, Seller has no obligation to sell the Property unless and until theSeller executes and delivers a signed agreement of purchase and sale onterms acceptable to the Seller, in its sole discretion. By submitting anoffer, a purchaser will be deemed to have acknowledged the foregoing andagreed to release Seller and Broker from any liability with respect thereto.All inquiries related to the property should be directed to the exclusivelisting agent:Scott GerberSenior Vice President415.451.2415sgerber@ctbt.comLIC # 01138762781 Lincoln Ave, Suite 100 | San Francisco, CA 94111 | 415.485.0500Northern California’s Source for Apartment Brokerage ServicesThe information set forth herein has been received by us from sources webelieve to be reliable. We do not warrant its accuracy or completeness.

Multi-Family InvestmentsEnchanted Place Mill Valley,CAProperty DescriptionOverview:Property:The Enchanted Place Apartments, located at 1 Shelley Drive in Mill Valley, is an attractive six unit corner building situated in the Enchanted Knolls neighborhood.Extensive interior upgrading to well designed apartments, competitive pricing and strategically excellent location make this a compelling buy!The unit mix consists of four-two bedroom one bath units, including an owner’s top floor unit with fireplace and deck and two-one bedroom one bath units. In addition,the property has individual storage lockers, laundry equipment and a very large storeroom with bathroom that could be an office. Situated on an up slope, the buildingfeatures two stories above parking, affording views of the Marin Hills to each unit upgrading.The following is a list of upgrades that have been made to the property:• Dual pane windows• Pitched comp shingle roof• Building owned laundry-washer and dryer• Tree Removal• All Bathrooms remodeled except B• All Kitchens remodeled except B• 4 new gas wall heaters• Gas lines brought to each unit and gas counter tops added-except B• 3 hot water heaters• Irrigation throughout property• Electrical upgraded to circuit breakers• New floor tile-4 out of 6 units• New lighting-5 out of 6 units• Storeroom and crawl space inspected and cleaned thoroughly• Drainage upgraded extensivelyLocation:The property is located 7 minutes from the Golden Gate Bridge and is a located within a 10 minute walk or 2 minute drive of 2 shopping centers. Whole Foods andSafeway are located within a 10 or 15 minute walk, or 3 minute drive.The City of Mill Valley is known as one of the most charming and desirable communities in Marin County and the entire Bay Area. Local city Schools are among thebest in the County and State. Enchanted Knolls enjoys great access to amazing outdoor recreational opportunities from Mt. Tamalpais, Golden Gate National RecreationArea, San Francisco Bay, Muir Woods and the Pacific Ocean. The best of Marin County is minutes away with San Francisco only 15 minutes from the door. A locationthat is exceptional!Northern California’s Source for Apartment Brokerage ServicesThe information set forth herein has been received by us from sources webelieve to be reliable. We do not warrant its accuracy or completeness.

Multi-Family InvestmentsOffering SummaryEnchanted Place Mill Valley,CA8S U M M A R YP R O P O S E D F I N A N C I N GPrice: $1,650,000 Approx. Age: 1951Down Payment: $600,000 Approx. Lot Size: 6,930 First Loan Amount: $1,050,000 New, 30 year amortizationNumber of Units: 6 Approx. Net RSF: 4,566 Term: 30 YearsCost Per Unit: $275,000 Cost Per Net RSF: $361.37 Rate: 3.50%Current GRM: 14.07 Cost Per Room: n/a Monthly Payment: $4,715Market GRM: 13.38Current CAP: 4.77%Market CAP: 5.06%Current RentsMarket RentsA N N U A L I Z E D O P E R A T I N G D A T AScheduled Gross Income: $117,300 $123,360Less Vacancy Rate Reserve: 2% $2,346 3% $3,701Gross Operating Income: $114,954 $119,659Less Expenses: 30.87% $36,211 $36,211Net Operating Income: $78,743 $83,448 *As a % of Down PaymentLess Loan Payments: $56,580 $56,580Pre-Tax Cash Flow: 3.69% * $22,163 4.48% * $26,869Plus Principal Reduction: $20,151 $20,151Total Return Before Taxes: 7.05% * $42,314 7.84% * $47,019Current RentsMarket RentsS C H E D U L E D I N C O M EA N N U A L I Z E D E X P E N S E SNo of Units BD/ BA Approx SF Mo Rent/Unit Monthly Income Mo Rent/Unit Monthly Income Taxes New Rate ** $20,3684 2/1 804 1550-1650 $6,400 $1,695 $6,780 Insurance $2,1002 1/1 675 1375-1500 $2,875 $1,500 $3,000 Janitorial $1,200$0 Water & Sewer $2,783$0 Gas & Electric $568$0 Rubbish $2,592$0 Landscaping (Est.) $1,200$0 Maintenance/Repair (Est.) $3,600Total Scheduled Rent: $9,275 $9,780 Off-Site ManagementLaundry: $100 $100 Misc. $1,800Utility Reimbursement:Other:Storage: $400 $400Monthly Scheduled Gross Income: $9,775 $10,280Annual Scheduled Gross: $117,300 $123,360 Total Expenses: $36,211Per Net SqFt: $7.93Per Unit: $6,035** 1.1082% plus $2,082.74Northern California’s Source for Apartment Brokerage ServicesThe information set forth herein has been received by us from sources webelieve to be reliable. We do not warrant its accuracy or completeness.

Multi-Family InvestmentsEnchanted Place Mill Valley,CARent RollParcel MapUnit Type SQFT RentA 2b/1b 804 $1,550B 2b/1b 804 $1,550C 1b/1b 675 $1,375D 2b/1b 804 $1,650E 2b/1b 804 $1,650F 1b/1b 675 $1,500Total Rents $9,275Northern California’s Source for Apartment Brokerage ServicesThe information set forth herein has been received by us from sources webelieve to be reliable. We do not warrant its accuracy or completeness.

Multi-Family InvestmentsEnchanted Place Mill Valley,CAProperty PhotographsNorthern California’s Source for Apartment Brokerage ServicesThe information set forth herein has been received by us from sources webelieve to be reliable. We do not warrant its accuracy or completeness.

Multi-Family InvestmentsEnchanted Place Mill Valley,CASales Comparable PropertiesSubject Units Mix Price Year built Price per unit Grm Cap rate Price per SF CoeEnchanted Place1 Shelley DriveMill Valley, CA64-2b/1b2-1b/1b$1,650,000 1951 $275,000 14.07 4.68% $361.37 OTM1Comparable #1 Units Mix Price Year built Price per unit Grm Cap rate Price per SF Coe245 Magnolia AvenueLarkspur, CA44-1b/1b$978,000 1961 $244,500 14.94 4.1% $353.45 10/10/112Comparable #1 Units Mix Price Year built Price per unit Grm Cap rate Price per SF Coe193-197 Miller AvenueMill Valley, CA102-2b/1.5b1-2b/1b2-1b/1b$2,400,000 1975 $240,000 12.80 5.3% $307.70 12/15/11Northern California’s Source for Apartment Brokerage ServicesThe information set forth herein has been received by us from sources webelieve to be reliable. We do not warrant its accuracy or completeness.

Multi-Family InvestmentsEnchanted Place Mill Valley,CASales Comparable Properties Map12PROPERTYNorthern California’s Source for Apartment Brokerage ServicesThe information set forth herein has been received by us from sources webelieve to be reliable. We do not warrant its accuracy or completeness.

Multi-Family InvestmentsEnchanted Place Mill Valley,CARent Comparable PropertiesSubject # Units 1B/1B 2B/1B 2B/2B Vacancies Utilities CommentsEnchanted Place1 Shelley DriveMill Valley, CA6$1350-$1500675 SF$2.11$1550-$1650804$1.990Tenant:PG&E, HWLandlord:W,S,TCats OkLaundryStorage1Comparable #1 # Units 1B/1B 2B/1B 2B/2B Vacancies Utilities Comments25 Thomas Dr.Mill Valley, CA12$1700825 SF$1.70 - $1.94 / SF0Tenant:PG&E, HWLandlord:W,S,T2Comparable #2 # Units 1B/1B 2B/1B 2B/2B Vacancies Utilities Comments35 Thomas Dr.Mill Valley, CA44-1b/1b$1425 - $1595825 SF$1.72 - $1.93 / SF0Tenant:PG&E, HWLandlord:W,S,T3Comparable #3 # Units 1B/1B 2B/1B 2B/2B Vacancies Utilities Comments915 E. BlithedaleMill Valley, CA12$1600700 SF$2.28 / SF1Tenant:PG&E, HWLandlord:W,S,TNorthern California’s Source for Apartment Brokerage ServicesThe information set forth herein has been received by us from sources webelieve to be reliable. We do not warrant its accuracy or completeness.

Multi-Family InvestmentsEnchanted Place Mill Valley,CARent Comparable Properties1Comparable # # Units 1B/1B 2B/1B 2B/2B Vacancies Utilities Comments30 Central DriveMill Valley, CA12$1650602 SF$2.74 / SF$1800886 SF$2.03 / SF1Tenant:PG&ELandlord:W,S,TNorthern California’s Source for Apartment Brokerage ServicesThe information set forth herein has been received by us from sources webelieve to be reliable. We do not warrant its accuracy or completeness.

Multi-Family InvestmentsEnchanted Place Mill Valley,CARent Comparable Properties Map123PROPERTYNorthern California’s Source for Apartment Brokerage ServicesThe information set forth herein has been received by us from sources webelieve to be reliable. We do not warrant its accuracy or completeness.

Multi-Family InvestmentsASSET OVERVIEWEnchanted Place Mill Valley,CAAerial MapSUBJECTNorthern California’s Source for Apartment Brokerage ServicesThe information set forth herein has been received by us from sources webelieve to be reliable. We do not warrant its accuracy or completeness.

Multi-Family InvestmentsASSET OVERVIEWEnchanted Place Mill Valley,CAParcel MapSUBJECTNorthern California’s Source for Apartment Brokerage ServicesThe information set forth herein has been received by us from sources webelieve to be reliable. We do not warrant its accuracy or completeness.

Multi-Family InvestmentsEnchanted Place Mill Valley,CAProperties Profile Report Northern California’s Source for Apartment Brokerage ServicesThe information set forth herein has been received by us from sources webelieve to be reliable. We do not warrant its accuracy or completeness.