vista at simi valley offering memorandum€¦ · the vista at simi valley is a newly construction...

Offering Memorandum

Vista At Simi ValleyAssisted Living | Memory Care InvestmentSimi Valley | California | 93065

By accepting this Offering Memorandum, the party in possessionhereof agrees (i) to return it to Owner/Agent immediately uponrequest and (ii) that this Offering Memorandum and its contents areof a confidential nature and will be held and treated in strictconfidence. No portion of this Offering Memorandum may becopied or otherwise reproduced or disclosed to anyone without theprior written authorization of officer of Owner/Agent. Principals andreal estate brokers are prohibited from disseminating thisinformation without the specific written consent of an officer ofOwner/Agent.

This Offering Memorandum is subject to errors, omissions, changesor withdrawal without notice and does not constitute arecommendation or endorsement as to the value of the property asa reference and are based on assumptions proposed byOwner/Agent and their sources. Prospective purchasers shouldmake their own projections and reach their own conclusion ofvalue.

Certain portions of this Offering Memorandum merely summarizeor outline property information and are in no way intended to becomplete nor necessarily accurate descriptions. All prospectivepurchasers are to rely upon their own investigations and duediligence in the formation of their assessment of the condition ofthe property, including engineering and environmental inspections.All relevant documents are expected to be reviewed independentlyby any prospective purchaser.Neither Owner nor the Agent nor any of their respective officers,advisors, agents, or principals has made or will make any

representations or warranties, expressed or implied, as to theaccuracy or completeness of the Offering Memorandum or any ofthe contents, and no legal commitment or obligations shall arise byreason of the Offering Memorandum or the contents. Analysis andverification of the information contained in the OfferingMemorandum is solely the responsibility of the prospectivepurchaser.

Owner reserves the right to reject any or all expressions of interestor offers to purchase this property, as well as the right to terminatediscussions with any party at any time with our without notice.Owner shall have no legal commitment or obligation to anypurchase reviewing this Offering Memorandum or making an offerto purchase this property unless a written agreement for thepurchase of the property has been fully executed, delivered andapproved by Owner and any conditions to Owner’s obligationsthereunder have been satisfied or waived.

The terms and conditions set forth above apply to this OfferingMemorandum in its entirety.

CONFIDENTIALITY AGREEMENT

3

PROPERTY OVERVIEW

Purchase Price: $25,950,000 | 95-unit Assisted Living (105 Beds) ProjectPeak Commercial and Anvers Capital Partners is pleasedto offer for sale to qualified investors a Newly built 105Bed Senior Housing project located in the city of SimiValley.

The subject, identified as The Vista at Simi Valley is aproposed 95-unit assisted living residence. Theimprovements will be completed in 2020, will be in newcondition, and situated on a 1.39-acre site. The physicaladdress is 1236 Erringer Road, Simi Valley, Ventura

County, California. The property will contain a unit mix of75 assisted and 20 memory care units (30 beds).

Project Amenities include a Central Community DiningRoom, game room, arts and craft room, library/computercenter, media room, lounge area, Elevator Access, Laundryfacilities, heath and wellness center, resident storage, mailroom, outside patios/walking areas, gardening areas, andmore.

Investment HighlightsNewly Built 2020 Construction.Property Construction will finish in the fall of 2020. Property to be delivered vacant, and ready for occupancy.

Strong Location | High Barriers to Entry.Property is strategically located on Erringer Road in Simi Valley, on of the busiest streets in the City.

High Quality Construction with various building and in-suite amenities.Brand new 2020 construction, to be delivered ready for occupancy. Class-A build with various amenities.

Strong Physical Location amongst mostly single family homesLocated on Erringer Road near Arcane St, the subject property is nestled in a pocket of Simi Valley consisting of mostly single family homes.

Various Exit StrategiesIdeal investment upon stabilization, either for continued cash flow, or disposition.

Affluent Location With Favorable DemographicsAverage household of income of $120,420 within a 3 mile radius with a median home value of $652,620 and a population of 82,48 2.

Vista At Simi Valley | Simi Valley CA

PROEPRTY OVERVIEW

PROPERTY OVERVIEW


Units BedsUnit of

Measure

Revenue

Units

Assisted Living 75 75 Units 75

Memory Care 20 30 Beds 30

Total 95 105 105

Primary Unit of Measure

Executive Summary

Location:

Property Name The Vista at Simi Valley

Website: http://www.vistasimivalley.com

Total SqFt: 48,437 (To be determined)

Land Area: 1.39 AC

Number of Buildings: 1

No. Of Stories 2

APN # 0284-201-31-0000

Year Built 2020

Total Units: 95

Total Beds: 105

Use Code: Senior Housing

Property IdentificationThe Vista at Simi Valley is a newly construction assisted living project. The imporvements will

be completed in new conidtion, and situated on a 1.39-acre site. The physical addres is 1236

Erringer Road, Simi Valley, Ventura County, Caifornia. The property will contain a unit mix of

75 assisted and 20 memory care units (30 beds).

1234 Erringer Road, Simi Valley,

Ventura County California 93065

5

5 PROPERTY DEMOGRAPHICS Vista At Simi Valley | Simi Valley CA

Project AmenitiesProperty and unit amenities for the subject property are summarized below.

• Central Community Dining room• Private • Private Dining Room• Game room• Arts & Craft room• Library/Computer center• Beauty/Barber Shop• Media room• Multi-Purpose Room• Lounge Areas• Elevator Access to All Areas

• Laundry Facilities• Trash room• Health and Wellness Center• Resident Storage• Mail room• Outside Patios/Walking Areas• Gardening Areas

The following are the individual living unit amenities and features that are being offered at the subject:

• 24-Hour Emergency Response System• Telephone Outlets• Individual Heating/Colling Controls• Wall-to-Wall Carpeting/Vinyl Flooring• Kitchenettes (AL units)

• Drapes/Window Treaments/Mini blinds• Private Baths• Showers with a Seat and Grab Bars and/or Tub

Shower Combination

INVESTMENT WRITE-UP

INVESTMENT OVERVIEW

The seniors housing and care industry provides accommodation, as well as anarray of services and program options to seniors. The demand for theseproperties is primarily driven by the segment of the seniors population overthe age of 75. The level of services and variety of options available to theseniors housing marketplace continues to evolve as the needs, preferencesand demands of seniors and their families change.

The types of properties that facilitate the delivery of accommodation and careservices to seniors are typically divided into four primary categories:independent living ("IL"), assisted living ("AL"), memory care ("MC") and long-term care ("LTC"). Seniors housing and care properties also include continuingcare retirement communities ("CCRCs"), which typically offer all of the carelevels noted above on a single campus. These property types are collectivelyreferred to as “seniors housing.”

The subject property is located in Simi Valley, Ventura County, California.Simi Valley is most influenced by trends impacting the Oxnard-ThousandOaks-Ventura, CA Metropolitan Statistical Area (MSA).

The immediate neighborhood is supportive of the subject’s proposed use asseniors housing. Development is limited within the subject’s neighborhood.There are some healthcare providers in the neighborhood that are supportiveof the subject with alternate care levels, although primarily residentialhousing which has either seniors or adult children that can act as a feeder.The neighborhood is considered to be in a stage of balance having a favorableimpact on the subject property.

Primary access to the neighborhood is provided the Ronald Reagan (118)Freeway. The Ronald Reagan Freeway is located within one mile north of thesubject. It is an east/west trending freeway connecting with Interstate 405 tothe east and the Moorpark (23) Freeway to the west. Surface street access tothe neighborhood is provided by Los Angeles Avenue, Cochran Street, ErringerRoad, Sycamore Drive and First Street.

The subject consists of a mixture of residential, commercial/retail, andrecreational uses. Directly to the north, south and east of the subject arereligious oriented uses. Additional uses near the subject are primarily single-family in nature. Further north across Los Angeles Avenue are establishedsingle- family residential neighborhoods in the city of Simi Valley. The areaalso includes multi-family uses. Some commercial/retail is found to thenorthwest, north of Los Angeles Avenue.

The following table summarizes the area hospitals and their respectivelocation in relation to distance from the subject:

INVESTMENT WRITE-UP


Miles From

SubjectBeds

2.17 143

7.94 382

8.56 228

Hospital Summary

Simi Valley Hosp. & Health Care

Los Robles Hosp. & Medical Center

West Hills Hops. & Medical Center

Hospital Summary

7 PROPERTY DEMOGRAPHICS Vista At Simi Valley | Simi Valley CAProperty Information Cap Rate Analysis Financing Assumptions

Sale Price: $25,950,000 As- Is Purchase Price $25,950,000 ALL CASH ANALYSIS

Number of Units: 95 As-Is Stabilized Cap Rate: 8.40%

Number of Beds: 105

Cost Per Bed: $247,143

Approx. Age: 2020 Additional Cash Infusion: $1,911,056

Apx SqFt: 48,437 Total Price: $27,861,056

Apx Unit SqFt: 26,363 Price Per SqFt (TP): $575.20

Price Per SqFt: $536 Price Per Bed (TP): $265,343

Approx. Lot Size: 1.39 AC Cap Rate (TP): 7.82%

Parking: Open Lot

Scheduled Income Estimated Expenses

No. Of

Beds

% of

Total Unit Type Unit SF Avg. Rent

Rent

PSF

Monthly

IncomeExpense Amount Per Unit

Per

Bldg. SF

% of

SGI

57 54% 0+1 AL 270 $3,595 $13.29 $204,915 Real Estate Taxes $259,500 $2,471 $5.36 5.25%

18 17% 1+1 AL 376 $4,495 $11.96 $80,910 Property Insurance $50,916 $485 $1.05 1.03%

Utilities $160,022 $1,524 $3.30 3.24%

10 10% 0+1 MC 230 $4,795 $20.82 $47,950 Administrative & General $309,133 $2,944 $6.38 6.26%

20 19% Shared MC 230 $3,895 $16.91 $77,900 Marketing $61,827 $589 $1.28 1.25%

Resident Care $1,436,560 $13,682 $29.66 29.08%

105 100% $3,920.71 $9.27 $411,675 $4,940,100 Culinary Services $618,266 $5,888 $12.76 12.52%

Level of Care Fees (Middle Tier Service Per Bed) $120,000 Laundry & Housekeeping $141,838 $1,351 $2.93 2.87%

Community Fees ($85 per Bed) $8,925 Repairs & Maintenance $141,838 $1,351 $2.93 2.87%

Other Income ($95 Per Bed) $9,975 Programing $114,561 $1,091 $2.37 2.32%

Monthly Scheduled Gross Income: $550,575 Payroll Taxes & Benefits $481,884 $4,589 $9.95 9.75%

Annualized Scheduled Gross Income: $6,606,900 Management Fee $305,792 $2,912 $6.31 6.19%

Replacement Reserve: $15,750 $150 $0.31 0.32%

Annualized Operating Data Current Monthly

Scheduled Rental Income: $4,940,100 $411,675

Additional Income: 1,666,800 138,900

Less Vacancy Rate Reserve: (330,345) (27,529)

Gross Operating Income: 6,276,555 523,046

Less Operating Expenses: 4,097,887 62.02% 341,491

Net Operating Income: $2,178,668 $181,556

TOTAL OPERATING EXPENSES: $4,097,887 $39,027 $84.58 82.95%

Expense Ratio: 62.02%

Total Price Indicators

5.0%

8 Unit Breakdown Vista At Simi Valley | Simi Valley CAUnit # Type Layout Size Unit # Type Layout Size Unit # Type Layout Size

101 MC Studio 253 134 AL Studio 276 225 MC Studio 301





106 MC Studio 220 139 AL Studio 216 230 MC 1+1 388



109 MC Studio 199 142 AL 1+1 471 233 MC Studio 304

110 MC Studio 272 201 AL 1+1 403 234 MC 1+1 343

111 MC Studio 220 202 AL Studio 254 235 MC 1+1 343




115 MC Studio 220 206 AL Studio 258 239 AL Studio 258



118 MC Studio 224 209 AL 1+1 462 242 AL Studio 291

119 MC Studio 224 210 AL 1+1 336 243 AL 1+1 322


121 AL Studio 285 212 AL Studio 250 245 AL Studio 267


123 AL Studio 303 214 AL 1+1 431 247 AL Studio 316

124 AL 1+1 346 215 AL Studio 217 248 AL Studio 316

125 AL 1+1 346 216 AL Studio 217 249 AL Studio 216



128 AL Studio 316 219 AL Studio 248 252 AL 1+1 335


130 AL Studio 290 221 AL Studio 253



133 AL 1+1 322 224 AL 1+1 414

# of Units

95

Total Rentable

26,363

Average Unit Size

278

9 Cash Flow Schedule (Year 1) Vista At Simi Valley | Simi Valley CA

Market Growth Assumptions M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12 Total

Current Average Per Unit: $3,920.71 $3,920.71 $3,920.71 $3,920.71 $3,920.71 $3,920.71 $3,920.71 $3,920.71 $3,920.71 $3,920.71 $3,920.71 $3,920.71

# of Units Rented 5 5 5 5 5 5 5 5 5 5 5 5

Total Rented: 5 10 15 20 25 30 35 40 45 50 55 60

% Rented 4.76% 9.52% 14.29% 19.05% 23.81% 28.57% 33.33% 38.10% 42.86% 47.62% 52.38% 57.14%

Income M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12 Total

Gross Potential Residential Rent $411,675 $411,675 $411,675 $411,675 $411,675 $411,675 $411,675 $411,675 $411,675 $411,675 $411,675 $411,675 $4,940,100

Other Income -Misc $6,614 $13,229 $19,843 $26,457 $33,071 $39,686 $46,300 $52,914 $59,529 $66,143 $72,757 $79,371 $515,914.29

Less: ResidentialPhysical Vacancy ($392,071) ($372,468) ($352,864) ($333,261) ($313,657) ($294,054) ($274,450) ($254,846) ($235,243) ($215,639) ($196,036) ($176,432) ($3,411,021)

Effective Gross $26,218 $52,436 $78,654 $104,871 $131,089 $157,307 $183,525 $209,743 $235,961 $262,179 $288,396 $314,614 $2,044,993

Expenses:

Real Estate Taxes $21,625 $21,625 $21,625 $21,625 $21,625 $21,625 $21,625 $21,625 $21,625 $21,625 $21,625 $21,625 $259,500

Property Insurance $4,243 $4,243 $4,243 $4,243 $4,243 $4,243 $4,243 $4,243 $4,243 $4,243 $4,243 $4,243 $50,916

Utilities $13,335 $13,335 $13,335 $13,335 $13,335 $13,335 $13,335 $13,335 $13,335 $13,335 $13,335 $13,335 $160,022

Administrative & General $25,761 $25,761 $25,761 $25,761 $25,761 $25,761 $25,761 $25,761 $25,761 $25,761 $25,761 $25,761 $309,133

Marketing $5,152 $5,152 $5,152 $5,152 $5,152 $5,152 $5,152 $5,152 $5,152 $5,152 $5,152 $5,152 $61,827

Resident Care $119,713 $119,713 $119,713 $119,713 $119,713 $119,713 $119,713 $119,713 $119,713 $119,713 $119,713 $119,713 $1,436,560

Culinary Services $51,522 $51,522 $51,522 $51,522 $51,522 $51,522 $51,522 $51,522 $51,522 $51,522 $51,522 $51,522 $618,266

Laundry & Housekeeping $11,820 $11,820 $11,820 $11,820 $11,820 $11,820 $11,820 $11,820 $11,820 $11,820 $11,820 $11,820 $141,838

Programing $9,547 $9,547 $9,547 $9,547 $9,547 $9,547 $9,547 $9,547 $9,547 $9,547 $9,547 $9,547 $114,561

Payroll Taxes & Benefits $40,157 $40,157 $40,157 $40,157 $40,157 $40,157 $40,157 $40,157 $40,157 $40,157 $40,157 $40,157 $481,884

Management Fee $25,483 $25,483 $25,483 $25,483 $25,483 $25,483 $25,483 $25,483 $25,483 $25,483 $25,483 $25,483 $305,792

Replacement Reserve: $1,313 $1,313 $1,313 $1,313 $1,313 $1,313 $1,313 $1,313 $1,313 $1,313 $1,313 $1,313 $15,750

TOTAL OPERATING EXPENSES $329,671 $329,671 $329,671 $329,671 $329,671 $329,671 $329,671 $329,671 $329,671 $329,671 $329,671 $329,671 $3,956,049

NOI ($303,453) ($277,235) ($251,017) ($224,799) ($198,581) ($172,364) ($146,146) ($119,928) ($93,710) ($67,492) ($41,274) ($15,056) ($1,911,056)

NOI & REP. RESERVE ($303,453) ($277,235) ($251,017) ($224,799) ($198,581) ($172,364) ($146,146) ($119,928) ($93,710) ($67,492) ($41,274) ($15,056) ($1,911,056)

Less Loan Payments $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Plus Cash Infusion $303,453 $277,235 $251,017 $224,799 $198,581 $172,364 $146,146 $119,928 $93,710 $67,492 $41,274 $15,056 $1,911,056

Pre-Tax Cash Flow $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

10 Cash Flow Schedule (Year 2) Vista At Simi Valley | Simi Valley CA

Market Growth Assumptions M13 M14 M15 M16 M17 M18 M19 M20 M21 M22 M23 M24 Total

Current Average Per Unit: $4,018.73 $4,018.73 $4,018.73 $4,018.73 $4,018.73 $4,018.73 $4,018.73 $4,018.73 $4,018.73 $4,018.73 $4,018.73 $4,018.73

# of Units Rented 4 4 4 4 4 4 4 4 4 4 4 1

Total Rented: 64 68 72 76 80 84 88 92 96 100 104 105

% Rented 60.95% 64.76% 68.57% 72.38% 76.19% 80.00% 83.81% 87.62% 91.43% 95.24% 99.05% 100.00%

Income M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12 Total

Gross Potential Residential Rent $421,967 $421,967 $421,967 $421,967 $421,967 $421,967 $421,967 $421,967 $421,967 $421,967 $421,967 $421,967 $5,063,603

Other Income -Misc $86,779 $92,203 $97,627 $103,051 $108,474 $113,898 $119,322 $124,745 $130,169 $135,593 $141,017 $142,373 $1,395,250.50

Less: ResidentialPhysical Vacancy ($164,768) ($148,693) ($132,618) ($116,543) ($100,468) ($84,393) ($68,318) ($52,244) ($36,169) ($20,094) ($18,707) ($18,707) ($961,723)

Effective Gross $343,978 $365,477 $386,976 $408,474 $429,973 $451,472 $472,970 $494,469 $515,967 $537,466 $544,276 $545,632 $5,497,130

Expenses:

Real Estate Taxes $22,058 $22,058 $22,058 $22,058 $22,058 $22,058 $22,058 $22,058 $22,058 $22,058 $22,058 $22,058 $264,690

Property Insurance $4,328 $4,328 $4,328 $4,328 $4,328 $4,328 $4,328 $4,328 $4,328 $4,328 $4,328 $4,328 $51,934

Utilities $13,602 $13,602 $13,602 $13,602 $13,602 $13,602 $13,602 $13,602 $13,602 $13,602 $13,602 $13,602 $163,222

Administrative & General $26,276 $26,276 $26,276 $26,276 $26,276 $26,276 $26,276 $26,276 $26,276 $26,276 $26,276 $26,276 $315,316

Marketing $5,255 $5,255 $5,255 $5,255 $5,255 $5,255 $5,255 $5,255 $5,255 $5,255 $5,255 $5,255 $63,064

Resident Care $122,108 $122,108 $122,108 $122,108 $122,108 $122,108 $122,108 $122,108 $122,108 $122,108 $122,108 $122,108 $1,465,291

Culinary Services $52,553 $52,553 $52,553 $52,553 $52,553 $52,553 $52,553 $52,553 $52,553 $52,553 $52,553 $52,553 $630,631

Laundry & Housekeeping $12,056 $12,056 $12,056 $12,056 $12,056 $12,056 $12,056 $12,056 $12,056 $12,056 $12,056 $12,056 $144,675

Programing $9,738 $9,738 $9,738 $9,738 $9,738 $9,738 $9,738 $9,738 $9,738 $9,738 $9,738 $9,738 $116,852

Payroll Taxes & Benefits $40,960 $40,960 $40,960 $40,960 $40,960 $40,960 $40,960 $40,960 $40,960 $40,960 $40,960 $40,960 $491,522

Management Fee $25,992 $25,992 $25,992 $25,992 $25,992 $25,992 $25,992 $25,992 $25,992 $25,992 $25,992 $25,992 $311,908

Replacement Reserve: $1,339 $1,339 $1,339 $1,339 $1,339 $1,339 $1,339 $1,339 $1,339 $1,339 $1,339 $1,339 $16,065

TOTAL OPERATING EXPENSES $336,264 $336,264 $336,264 $336,264 $336,264 $336,264 $336,264 $336,264 $336,264 $336,264 $336,264 $336,264 $4,035,170

NOI $7,714 $29,213 $50,711 $72,210 $93,709 $115,207 $136,706 $158,205 $179,703 $201,202 $208,012 $209,368 $1,461,960

NOI & REP. RESERVE $7,714 $29,213 $50,711 $72,210 $93,709 $115,207 $136,706 $158,205 $179,703 $201,202 $208,012 $209,368 $1,461,960

Less Loan Payments $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Plus Cash Infusion $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Pre-Tax Cash Flow $7,714 $29,213 $50,711 $72,210 $93,709 $115,207 $136,706 $158,205 $179,703 $201,202 $208,012 $209,368 $1,461,960

11 Cash Flow Schedule (5-Year Projections) Vista At Simi Valley | Simi Valley CA

Market Growth Assumptions Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

Current Average Per Unit: $3,920.71 $4,018.73 $4,119.20 $4,222.18 $4,327.73 $4,435.93

Revenue Growth Per Year: 2.50% 2.50% 2.50% 2.50% 2.50% 2.50%

Operating Expense Growth Per Year: 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%

Vacancy: 5.00% 5.00% 5.00% 5.00% 5.00%

Income: $/Unit

Gross Potential Residential Rent $4,940,100 $47,049 $4,940,100 $5,063,603 $5,190,193 $5,319,947 $5,452,946 $5,589,270

Other Income -Misc $1,666,800 $15,874 $515,914 $1,395,251 $1,751,182 $1,794,961 $1,839,835 $1,885,831

Less: ResidentialPhysical Vacancy ($247,005) 5.00% ($3,411,021) ($253,180) ($259,510) ($265,997) ($272,647) ($279,463)

Effective Gross $6,359,895 $60,570 $2,044,993 $6,205,673 $6,681,865 $6,848,911 $7,020,134 $7,195,637

Expenses:

Real Estate Taxes $259,500 $2,471 $259,500 $264,690 $269,984 $275,383 $280,891 $286,509

Property Insurance $50,916 $485 $50,916 $51,934 $52,973 $54,032 $55,113 $56,215

Utilities $160,022 $1,524 $160,022 $163,222 $166,487 $169,817 $173,213 $176,677

Administrative & General $309,133 $2,944 $309,133 $315,316 $321,622 $328,054 $334,616 $341,308

Marketing $61,827 $0 $61,827 $63,064 $64,325 $65,611 $66,924 $68,262

Resident Care $1,436,560 $13,682 $1,436,560 $1,465,291 $1,494,597 $1,524,489 $1,554,979 $1,586,078

Culinary Services $618,266 $5,888 $618,266 $630,631 $643,244 $656,109 $669,231 $682,616

Laundry & Housekeeping $141,838 $1,351 $141,838 $144,675 $147,568 $150,520 $153,530 $156,601

Programing $114,561 $1,091 $114,561 $116,852 $119,189 $121,573 $124,005 $126,485

Payroll Taxes & Benefits $481,884 $4,589 $481,884 $491,522 $501,352 $511,379 $521,607 $532,039

Management Fee $305,792 $2,912 $305,792 $311,908 $318,146 $324,509 $330,999 $337,619

Replacement Reserve: $15,750 $150 $15,750 $16,065 $16,386 $16,714 $17,048 $17,389

TOTAL OPERATING EXPENSES $3,956,049 $37,677 $3,956,049 $4,035,170 $4,115,873 $4,198,191 $4,282,155 $4,367,798

NOI $2,403,846 $22,894 ($1,911,056) $2,170,503 $2,565,991 $2,650,720 $2,737,979 $2,827,840

Operating Expense Ratio 62.2% 65.0% 61.6% 61.3% 61.0%

Plus Cash Infusion $1,911,056 $0 $0 $0 $0 $0

Pre-Tax Cash Flow $0 $2,170,503 $2,565,991 $2,650,720 $2,737,979 $2,827,840

Y0 Stabalized

$3,920.71

12 IRR and Cash Flow Analysis Vista At Simi Valley | Simi Valley CAASSUMPTIONS CURRENT RETURN/RESIDUAL VALUE RATIO - UNLEVERAGED YEAR 5

Total Equity Required Y0 $27,861,056 Percent of

Cost per Unit $247,143 IRR Total Return

Analysis Period 5 Years Total Unlevered IRR 14.59% 100.00%

Terminal CAP Rate 6.50% Cash Flow with No Apppreciation 6.97% 47.80%

Terminal Price Determination Following Year NOI Apreciation Return 7.62% 52.20%

Y5 Sale Price $43,505,226

Cost of Sale 2.00% Equity Multiple 1.89

RETURNS - UNLEVERAGED

Year Ending: Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

NOI Return (1,911,056) 2,170,503 2,565,991 2,650,720 2,737,979 2,827,840

Levered Cash Flow (27,861,056) - 2,170,503 2,565,991 2,650,720 2,737,979 2,827,840

NOI Return -6.86% 7.79% 9.21% 9.51% 9.83% 10.15%

Cash to Initial Equity 0.00% 7.79% 9.21% 9.51% 9.83%

Internal Rate of Return 17.46% 21.10% 17.40% 15.63% 14.59%

PRESENT VALUES AT VARIOUS DISCOUNT RATES AND HOLDING PERIODS - UNLEVERAGED

PRESENT VALUES Discount Rate Year 1 Year 2 Year 3 Year 4 Year 5 6

9.50% $29,885,393 $34,075,817 $34,203,894 $34,321,912 $34,430,642

9.75% $29,817,317 $33,920,751 $33,974,792 $34,022,873 $34,065,557

10.00% $29,749,550 $33,766,741 $33,747,748 $33,727,153 $33,705,275

10.25% $29,682,091 $33,613,777 $33,522,741 $33,434,708 $33,349,720

10.50% $29,614,937 $33,461,851 $33,299,747 $33,145,494 $32,998,820

This information has been secured from sources we believe to be reliable, but we make no representat ions or warrant ies, expressed or implied as to the accuracy of the

information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies.

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20%

25%

0%

2%

4%

6%

8%

10%

12%

Year 2 Year 3 Year 4 Year 5

IRR

NO

I &

Ca

sh-o

n-C

ash

Re

turn

s

NOI Return Cash on Cash Return IRRYear 2 Year 3 Year 4 Year 5

$33,766,741 $33,747,748

$33,727,153

$33,705,275

Present Value At 10% Discount

13

PROPERTY PHOTOS Vista At Simi Valley | Simi Valley CA

14 PROPERTY PHOTOS Vista At Simi Valley | Simi Valley CA

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CITY OVERVIEW – SIMI VALLEY Vista At Simi Valley | Simi Valley CA

The city of Simi Valley is a suburban submarket located in the

southeast corner of Ventura County in the greater Los Angeles area.

It is located just northwest of the boarder of Los Angeles city, and less

than 40 miles from downtown Los Angeles.

Simi Valley is surrounded by the Santa Susana Mountain range and

the Simi Hills. The city neighbors Moorpark (to the west), Thousand

Oaks (to the south), and the San Fernando Valley (to the east). The

118 freeway runs through Simi Valley, connecting it to the city of Los

Angeles via the Santa Susana Pass.

The city features a pleasant combination of housing, offices, retail

and industrial building. There are many schools, parks, and

government services such as a public library, USPS, and DMV offices.

Simi Valley is home to the Ronald Reagan Presidential Library and a

rail station service by Amtrak, Metrolink, and local buses.

It is considered one of the safest cities in the area, with a large

proportion of its residents being current or former police officers. FBI

crime statistics from 2016 ranked it as the 7th safest city in the United

States with a population of 100,000 or more, similar to Thousand Oaks

and Moorpark.

It’s been ranked as the fifth happiest city in the US, according to a

study by the University of Vermont. Wide open spaces, affordable

rent, easy freeway access, and a laid-back lifestyle in what is

otherwise one of the busiest areas in the United States, all lend

themselves to being a dream place to live, at any stage in one’s life.

Outdoors enthusiasts will find a great deal to love in Simi Valley, as will

fans of shopping and nightlife. With several golf courses located

around the city, and locations like Big Sky Park (which truly lives up to

its name), you’ll never run out of entertainment options in this city

Simi Valley A study done by the University of Vermont also ranked Simi Valley as the fifth-happiest city in the United States. According to crime statistics by the FBI in 2013, it is the seventh-safest city in the U.S.

31

CITY OVERVIEW – SIMI VALLEY Vista At Simi Valley | Simi Valley CA

Take a tour of our local Museums and Historical Sites.

Simi Valley is home to multiple museums. From the world renowned Ronald Reagan Presidential Library and Museum to itslocal California Historical Landmark – Grandma Prisbrey’s Bottle Village, visitors will find interesting facts about fascinatingpeople and step back in time as they explore hand curated artifacts. If those don’t spark your interest, maybe Old SantaSusanna Depot Museum and Model Railroad, Strathearn Historical Park or the famous Skatelab will!

Hikes and Trails.

Simi Valley is known for its beautiful landscape and amazing trail system. The city is surrounded by greenbelts and wild lifecorridors with 50 miles worth of trails winding as far as Los Angeles. Mount McCoy and Rocky Peak are local favorites.

Outdoor Concerts

Everything moves outdoors in the Simi summertime where even the hottest day ends with a nice cool breeze. Vistors andresidents can expect to enjoy concerts in the local parks, courtyards and even at the Ronald Reagan Presidential Library andMuseum.

Farmer’s Market

The City’s local Farmer’s Market is one of Simi’s best kept secrets. Ventura County is one of California’s largest agriculturalregions. You cannot get produce much fresher than this. The market is everything artisan from the produce and fully preparedfoods (try the tamales!) to arts, crafts and jewelry.

Simi Valley Days Carnival and Parade!Simi Valley Days has been an annual celebration for over 40 years. Carnival rides, games, food, concerts… and more includingits yearly parade.

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PROPERTY DEMOGRAPHICS Vista At Simi Valley | Simi Valley CA

Radius 1 Mile 3 Mile 5 Mile

Population:

2025 Projection 20,394 82,603 126,949

2020 Estimate 20,287 82,482 126,695

2010 Census 19,646 81,576 124,942

Growth 2020-2025 0.53% 0.15% 0.20%

Growth 2010-2020 3.26% 1.11% 1.40%

Households:

2025 Projection 6,120 26,310 42,070

2020 Estimate 6,085 26,278 41,979

2010 Census 5,888 26,075 41,431

Growth 2020 - 2025 0.58% 0.12% 0.22%

Growth 2010 - 2020 3.35% 0.78% 1.32%

Owner Occupied 4,327 19,650 31,023

Renter Occupied 1,758 6,628 10,956

2020 Avg Household Income $106,621 $120,420 $124,180

2020 Med Household Income $87,861 $98,242 $99,681

2020 Households by Household Inc:

<$25,000 696 2,347 3,943

$25,000 - $50,000 984 3,535 5,456

$50,000 - $75,000 846 3,250 5,100

$75,000 - $100,000 1,003 4,310 6,574

$100,000 - $125,000 664 3,233 5,048

$125,000 - $150,000 731 2,630 3,874

$150,000 - $200,000 546 3,494 5,638

$200,000+ 614 3,479 6,346

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Subject Property

Subject Property

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Subject Property

35 PROPERTY DEMOGRAPHICS Vista At Simi Valley | Simi Valley CA

CONTACT INFORMATION:

David MeirPeak Commercial | Anvers Capital Partners Director | Managing Partner

CA License #008775235900 Canoga Ave #110Woodland Hills, CA [email protected]@anverscp.com

www.anverscp.com | www.peakcommercial.com__________________________________________________

Jack MinassianPeak Commercial | Anvers Capital PartnersDirector | Managing Partner

CA License #012754345900 Canoga Ave #110Woodland Hills, CA [email protected]@anverscp.com

www.anverscp.com | www.peakcommercial.com

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