Disclaimer: The information contained herein has been obtained from sources deemed reliable but has not been verified and no guarantee, warranty or representation, either express or implied, is made with respect to such information. Terms of sale or lease and availability are subject to change or withdrawal without notice.

500 SYLVAN AVENUE S A N B R U N O ∙ C A L I F O R N I A

O F F E R I N G M E M O R A N D U M

S C OT T K I L PAT R I C K | 6 5 0 . 8 6 8 . 0 7 3 8 | S K I L PAT R I C K @ A R A N E W M A R K .C O M | C A R E L I C E N S E # 0 1 2 1 9 1 2

17-1158/17-10

PROJECT DESCRIPTIONThe applicant proposes to demolish the existing vacant structure, and construct in its pace a new three story multi-family apartment building consisting of nine residential units and a total of 14 parking spaces. The nine residential units would include the following mix of unit types:

UNIT TYPE TYPICAL SIZE # OF UNITS

STUDIO 403 SF 1

1 BEDROOM 824 - 846 SF 2

2 BEDROOM 984 - 1,077 SF 6 *All units have washer/dryer connections in unit.

The studio unit would be located on the ground floor level, and the 1-bedroom and 2-bedroom units would be located on second and third floor levels. Open patios are proposed at the front entrance of all residential units that are located on the second and third floor levels. Additionally, two residential balconies are proposed along the north side elevation. Additional outdoor open space is provided in a courtyard area located towards the northern portion of the property. The courtyard area would measure approximately 650 square feet in total area (10’-0” wide by 65’-0” deep).

Pedestrian access to the building is provided through four separate entrances. The main entrance and lobby would front onto Sylvan Avenue. Access to the lobby area is also achieved via a secondary entrance located within the parking area on the ground floor level. Lastly, two external stairways would provide direct access to the residential units located on the second and third floor levels. The lobby and all floors will have access to a building elevator. This elevator is a requirement of the city.

Two residential driveways would provide vehicular access to the ground floor parking area. Specifically, the Sylvan Avenue driveway provides access to 11 of the 14 proposed on-site parking spaces, while the Green Avenue driveway provides access to the three additional on-site parking spaces.

The project would be built at a 1.72 FAR, which meets the Central Business District Character Area development standards outlined within the Transit Corridors Plan (TCP). The building would incorporate varying setbacks along all portions of the site, which also comply with standards outlined within the TCP.

Landscaping treatments are proposed throughout the majority of the Sylvan Avenue and Green Avenue frontage, with additional landscaping proposed along the northern (rear) property line. Additionally, the applicant is proposing to install three individual landscaped lattices located with associated vines along the western elevation.

EXISTING CONDITIONSThe subject property is 7,364 square feet in area and is located on the northwest corner of Sylvan Avenue and Green Avenue. The site is currently developed with a vacant building that was previously used as a dental office for many years. The remainder of the lot consist of asphalt paving, with some landscaping located along a portion of the Sylvan Avenue and Green Avenue frontage. The site is currently zoned R2 (Low Density Residential), but is also located in the Transit Corridors Plan (TCP) Area. There are five character areas located throughout the TCP area. The subject site is located in the Central Business District (C-B-D) Character Area.

Multi-family residential apartment buildings are located directly to the west, north, and east of the subject site. As you travel in the northerly direction the neighborhood transitions to a low-density residential district consisting of one and two-story single-family homes. A wide variety of land uses are located to the south of the subject site, ranging from a City-owned parking lot, a single-family home, an office, and the Ramada Inn.

SURROUNDING LAND USES

DIRECTION STREET LAND USES

NORTH ANGUS AVENUE WEST

R-2 (Low Density Residential),

C-B-D (Central Business District)

SOUTH JENEVEIN AVENUE

R-2 (Low Density Residential),

C-B-D (Central Business District)

EAST EASTON AVENUE

R-2 (Low Density Residential),

C-B-D (Central Business District),

C (General Commercial)

WEST EL CAMINO REAL

C (General Commercial),

C-N (Neighborhood Commercial)

ASKING PRICE $1,850,000

EXISTING VACANT STRUCTURE

PROPOSED DEVELOPMENT

S C OT T K I L PAT R I C K | 6 5 0 . 8 6 8 . 0 7 3 8 | S K I L PAT R I C K @ A R A N E W M A R K .C O M | C A R E L I C E N S E # 0 1 2 1 9 1 2

Executive Summary 500 SYLVAN AVENUE SAN BRUNO ∙ CALIFORNIA

OFFERING MEMORANDUM

17-1158/17-10

S C O T T K I L P A T R I C K ∙ D I R E C T : 6 5 0 . 6 8 8 . 8 5 3 9 ∙ M O B I L E : 6 5 0 . 8 6 8 . 0 7 3 8 ∙ S K I L P A T R I C K @ A R A N E W M A R K . C O M

Total SF Base Cost/SF Total Base Cost Off-site Cost/Unit Soft Cost/Unit Total Off-site & Soft Cost/Unit8,258 $220 $1,816,760 $10,000 $10,000.00 $180,000

Construction Costs:

Costs Cost/Sqft Cost/UnitTotal Base Costs: $1,816,760 $220.00 $201,862.22 Off-site & Soft Costs: $180,000 $21.80 $20,000 Parking Podium $650,000 $78.71 $72,222.22 Elevator Install $85,000 $10.29 $9,444.44 Elementary School Fees $27,169 $3.29 $3,018.76 High School District Fees $11,479 $1.39 $1,275 Underground Utilities 200 Ft $150,000 $18.16 $16,666.67 Fire Dept Plan Check & Inspection $4,495 $0.54 $499 Storm Water Service $4,200 $0.51 $467 Waste Water Service $12,816 $1.55 $1,424 Water Service $10,400 $1.26 $1,156 Fire Water Meter $8,845 $1.07 $983 Main to Meter Connection fees $42,000 $5.09 $4,666.67 Building Inpsection fees $62,000 $7.51 $6,888.89 Below Market Rate Fee $25.00 $206,450 $25.00 $22,939

Total Costs $3,271,613 $396 $363,512.60

Number of Units Total Square Feet Average Unit Size9 8,258 918

Total Market SF For Sale Sales Price / SF Total Market Revenue8,258 $708 $649,629 $5,846,664

Sales Revenue:

Total Revenue: $5,846,664 Sales Costs & Commissions: $175,400 3.00%Adjusted Revenue: $5,671,264 Construction Costs: $3,271,613

Net Revenues Less Land Costs: $2,710,968 $ Per Sq. Ft $ Per Unit $ Per Sq. Ft. Land Cost of Land: $1,850,000 $224.03 $205,555.56 $251.56 Proposed Debt $3,072,968

Project Profit on Land: $549,651 % Profit on Cost 29.71%% of Profit on Land 10.73%

TOTAL COST OF PROJECT $5,121,613

page 3

17-1158/17-10

Income Expense:

OFFERING SUMMARY • 500 SYLVAN AVENUE • SAN BRUNO, CALIFORNIA

S C O T T K I L P A T R I C K ∙ D I R E C T : 6 5 0 . 6 8 8 . 8 5 3 9 ∙ M O B I L E : 6 5 0 . 8 6 8 . 0 7 3 8 ∙ S K I L P A T R I C K @ A R A N E W M A R K . C O M

SUMMARY Price $5,850,000 Proposed Financing Down Payment $2,340,000 40.00% First Loan Units 9 Amount $3,510,000 Interest Rate 3.85% $/Unit $650,000 Amort 30 Monthly Payment $16,455 GRM (Current) 16.42 Details GRM (Market) 16.42 Cap Rate (Current) 4.46% Cap Rate (Market) 4.46% DCR 1.32 Year Built 2018 Lot Size 7,834 Total Sq Ft 8,258 $/Sq Ft $708.40

ANNUALIZED OPERATING DATACurrent Market

Scheduled Gross Rent $356,340 $356,340 Vacancy ($10,690) 3.00% ($10,690) 3.00%Effective Gross Rent $345,650 $345,650 Other Income $0 $0 Total Income $345,650 $345,650 Total Expenses $87,904 25.43% $87,904 25.43% Net Operating Income $257,746 $257,746 Debt Service $197,462 $197,462 Net Cash Flow $60,284 2.58% * $60,284 2.58% * Principal Reduction $63,439 $63,439 Total Return $123,723 5.29% * $123,723 5.29% **As a percent of down payment

ANNUALIZED EXPENSES SCHEDULED INCOMECurrent Market UNITS CURRENT MARKET

OPERATING EXPENSES # Type Sq Ft Rent Total Rent TotalRepairs & Maintenance $4,500 $4,500 1 Studio 403 $2,195 $2,195 $2,195 $2,195Landscaping $1,500 $1,500 2 1+1 935 $2,800 $5,600 $2,800 $5,600Trash, Water, Sewer $12,000 $12,000 6 2+2 1,000 $3,500 $21,000 $3,500 $21,000On-Site Management $0 $0 Rubs $100 $900 $900Electric $1,200 $1,200Elevator $3,000 $3,000Mics $0 $0Subtotal $22,200 $22,200NON-OPERATING EXPENSESReserves $1,800 $1,800Property Tax $63,824 $63,824Assessments $80 $80Insurance $0 $0 Average SQ FT 0.01091 Monthly Scheduled Gross Income $29,695 $29,695Subtotal $65,704 $65,704 Annual Scheduled Gross Income $356,340 $356,340 TOTAL EXPENSES $87,904 $87,904 Monthly Other Income Rubs $0 $0 Per Sq Ft Annual Other Income $0 $0 Per Unit $9,767 $9,767 Utilities Paid by Tenant Gas & ElectricDISCLAIMER: This document is provided for reference purposes only. The information set forth herein has been received by us from sources we believe to be reliable. We do not warrant its accuracy or completeness.

page 4

17-1158/17-10

Apartment Operating Proforma

OFFERING SUMMARY • 500 SYLVAN AVENUE • SAN BRUNO, CALIFORNIA

S C OT T K I L PAT R I C K | 6 5 0 . 8 6 8 . 0 7 3 8 | S K I L PAT R I C K @ A R A N E W M A R K .C O M | C A R E L I C E N S E # 0 1 2 1 9 1 2

PAGE 5CLOSE-UP AERIAL VIEW • 500 SYLVAN AVENUE • SAN BRUNO, CALIFORNIA

17-1158/17-10

500 SYLVAN AVENUE EAST PALO ALTO ∙ CALIFORNIA

S C OT T K I L PAT R I C K | 6 5 0 . 8 6 8 . 0 7 3 8 | S K I L PAT R I C K @ A R A N E W M A R K .C O M | C A R E L I C E N S E # 0 1 2 1 9 1 2

PAGE 6AREA MAP • 500 SYLVAN AVENUE • SAN BRUNO, CALIFORNIA

17-1158/17-10

500 SYLVAN AVENUE EAST PALO ALTO ∙ CALIFORNIA

S C OT T K I L PAT R I C K | 6 5 0 . 8 6 8 . 0 7 3 8 | S K I L PAT R I C K @ A R A N E W M A R K .C O M | C A R E L I C E N S E # 0 1 2 1 9 1 2

PAGE 7LOCAL MAP • 500 SYLVAN AVENUE • SAN BRUNO, CALIFORNIA

17-1158/17-10500 SYLVAN AVENUE

EAST PALO ALTO ∙ CALIFORNIA

500 SYLVAN AVENUE SAN BRUNO ∙ CALIFORNIA

S C OT T K I L PAT R I C K | 6 5 0 . 8 6 8 . 0 7 3 8 | S K I L PAT R I C K @ A R A N E W M A R K .C O M | C A R E L I C E N S E # 0 1 2 1 9 1 2

PAGE 8PARCEL MAP • 500 SYLVAN AVENUE • SAN BRUNO, CALIFORNIA

17-1158/17-10

S C OT T K I L PAT R I C K | 6 5 0 . 8 6 8 . 0 7 3 8 | S K I L PAT R I C K @ A R A N E W M A R K .C O M | C A R E L I C E N S E # 0 1 2 1 9 1 2

PAGE 9SITE MAP • 500 SYLVAN AVENUE • SAN BRUNO, CALIFORNIA

17-1158/17-10

S C OT T K I L PAT R I C K | 6 5 0 . 8 6 8 . 0 7 3 8 | S K I L PAT R I C K @ A R A N E W M A R K .C O M | C A R E L I C E N S E # 0 1 2 1 9 1 2

PAGE 10GROUND FLOOR PLAN • 500 SYLVAN AVENUE • SAN BRUNO, CALIFORNIA

17-1158/17-10

S C OT T K I L PAT R I C K | 6 5 0 . 8 6 8 . 0 7 3 8 | S K I L PAT R I C K @ A R A N E W M A R K .C O M | C A R E L I C E N S E # 0 1 2 1 9 1 2

PAGE 11SECOND FLOOR PLAN • 500 SYLVAN AVENUE • SAN BRUNO, CALIFORNIA

17-1158/17-10

S C OT T K I L PAT R I C K | 6 5 0 . 8 6 8 . 0 7 3 8 | S K I L PAT R I C K @ A R A N E W M A R K .C O M | C A R E L I C E N S E # 0 1 2 1 9 1 2

PAGE 12SECOND FLOOR PLAN • 500 SYLVAN AVENUE • SAN BRUNO, CALIFORNIA

17-1158/17-10

S C OT T K I L PAT R I C K | 6 5 0 . 8 6 8 . 0 7 3 8 | S K I L PAT R I C K @ A R A N E W M A R K .C O M | C A R E L I C E N S E # 0 1 2 1 9 1 2

PAGE 13EAST & SOUTH ELEVATIONS • 500 SYLVAN AVENUE • SAN BRUNO, CALIFORNIA

17-1158/17-10

S C OT T K I L PAT R I C K | 6 5 0 . 8 6 8 . 0 7 3 8 | S K I L PAT R I C K @ A R A N E W M A R K .C O M | C A R E L I C E N S E # 0 1 2 1 9 1 2

PAGE 14WEST & NORTH ELEVATIONS • 500 SYLVAN AVENUE • SAN BRUNO, CALIFORNIA

17-1158/17-10

S C OT T K I L PAT R I C K | 6 5 0 . 8 6 8 . 0 7 3 8 | S K I L PAT R I C K @ A R A N E W M A R K .C O M | C A R E L I C E N S E # 0 1 2 1 9 1 2

PAGE 15TRANSPORTATION • 500 SYLVAN AVENUE • SAN BRUNO, CALIFORNIA

17-1158/17-10

500 SYLVAN AVENUE EAST PALO ALTO ∙ CALIFORNIA

SAN BRUNO BART STATION

SAN BRUNO CALTRAIN STATION

SAMTRANS STATION JENEVEIN & ELM AVE

SAMTRANS STATION EL CAMINO & SAN BRUNO

SAN FRANCISCO INTERNATIONAL AIRPORTSAN BRUNO

S C OT T K I L PAT R I C K | 6 5 0 . 8 6 8 . 0 7 3 8 | S K I L PAT R I C K @ A R A N E W M A R K .C O M | C A R E L I C E N S E # 0 1 2 1 9 1 2

PAGE 16AMENITIES • 500 SYLVAN AVENUE • SAN BRUNO, CALIFORNIA

17-1158/17-10

500 SYLVAN AVENUE EAST PALO ALTO ∙ CALIFORNIA

• American One• Andersen Bakery • Art of Reflexology • AT&T Wireless • Auntie Anne's Pretzels • Bakers Shoes • Barnes & Noble • Basic Plus • Bath & Body Works • Best Buy Mobile • BJ's Restaurant &

Brewhouse • Bloom Brow Art 23 • Burger King • CD Wireless • Century Theatres • Charlotte Russe • Cinnabon City's Finest • Claire's • Classic Materials Sports

Collectibles • Cold Stone Creamery • Crazy Wireless • Crepe Temptations • Custom Me • Da-Vi Nails • Dairy Queen / Orange

Julius • DART OPS • DB Shoes • Designers Center • dressbarn • East & West Gallery • f.y.e. • Finish Line • Five Guys Burgers and

Fries • Flowers & Events by

Dani • Foot Locker • Forever 21 • Frederick's of

Hollywood

• Fresh Apparel • G by GUESS • GameStop • GNC Goldrush • Great Steak & Potato • Green Salsa Fresh

Mexican Grill • H&R Block Hallmark • Hollister • Hooters • Hop-n-Play • Hot Topic • Ichiban Kan • Italia Express • Jake's BBQ • Jay Mart Japanese

Boutique & Specialty Foods

• JCPenney • Jewel Time • Jollibee • Journeys • Justice • Kay Jewelers • Lane Bryant • LensCrafters • Little Angel & Bridal • LiveWell Medical Clinic • MasterCuts • metroPCS • Mina Shoes • Mrs. Fields Cookies • My Gold Buyer • Nicole's Bridal and

Formalwear • Old Navy • Orange Tree Frozen

Yogurt • Panda Express • Payless ShoeSource • Perfect Fingers Beauty

Spa • Perfumerie

• PETCO • Piercing Pagoda • Prudential California

Realty • Regis Salons • S&L Gem Co. • Saigon Cuisine • Sarku Japan • Scoopful Ice Cream &

Candies • Sears • Sephora • Shiekh Shoes • Shirtique Pro Shop • Shoe Palace • Sorabol • Spencer's Gifts • Sprint • Starbucks • Sunglass Hut • Surf City • Squeeze • T-Mobile • Takken's Shoes • Tanforan Dental • Target• The Children's Place• The Shops at Tanforan • Things Remembered • Tilly's• Time Works Watch &

Jewelry Repair • Toys R Us Express • Ulta Cosmetics &

Fragrance • Victoria's Secret • Wetzel’s Pretzels • Zumiez

THE SHOPS AT TANFORAN

• Allstar Insurance• AT&T• Best Buy• BevMo• Burger King• California Check

Cashing• Chuck E. Cheese’s• Cost Cutters• Dickey’s BBQ• DXL Destination XL• Eyebrow Plus• H&R Block• Image Perfection• Jenny Craig• L&L Hawaiian BBQ

• La Salsa• Leader Cleaners• Lowe’s Home &

Garden Center• Lucky• Manila Bay Cuisine• Marshalls• Metro PCS• Mijouri Sushi Bune• Payless Shoesource• Pho Do Vietnamese

Cuisine• Pombra Dental

Excellence• Popeye’s Chicken• Postal Annex

• Quickly• Red Lobster• Red Ribbon Bake Shop• Red Robin• Sally Beauty Supply• Specialty Tobacco

Outlet• Sprint• Starbucks Coffee• Subway Sandwich• T-Mobile• Towne Center Dental• US Bank• Vogue Nail Care

SAN BRUNO TOWNE CENTER

SAN FRANCISCO INTERNATIONAL AIRPORT

SOUTH SAN FRANCISCO

SAN BRUNO

1 2

3

4

5

6

7

8

9

10

11

12

13

RESTAURANTS• Busy Bakers• Cleo’s Brazilian Steakhouse• Five Guys• Gintei Japanese restaurant• Isla Restaurant• Jack’s• K.Grill & Tofu House• Mexicana Produce Market• Papa John’s Pizza• Patio Filipino• Taqueria San Bruno• Untitled• West Coast Cafe

SAN BRUNO - LOCAL AMENITIESRETAIL• Bayhill Shopping Center• Best Buy• JCPenney• San Bruno Towne Center• Sears• The Shop San Bruno• The Shops at Tanforan• Target• T-Mobile

BANKS• Bank of America Financial Center• Bank of America ATM• Chase Bank• Patelco Credit Union• Wells Fargo Bank• U.S. Bank Branch

123456789

10111213

123456789

123456

1

2

3

4

5

6

1

2

3

4

5

6

78

9

S C OT T K I L PAT R I C K | 6 5 0 . 8 6 8 . 0 7 3 8 | S K I L PAT R I C K @ A R A N E W M A R K .C O M | C A R E L I C E N S E # 0 1 2 1 9 1 2

PAGE 17TOP EMPLOYERS • 500 SYLVAN AVENUE • SAN BRUNO, CALIFORNIA

17-1158/17-10

500 SYLVAN AVENUE EAST PALO ALTO ∙ CALIFORNIA

SAN FRANCISCO INTERNATIONAL AIRPORT

SOUTH SAN FRANCISCO

SAN BRUNO

S C OT T K I L PAT R I C K | 6 5 0 . 8 6 8 . 0 7 3 8 | S K I L PAT R I C K @ A R A N E W M A R K .C O M | C A R E L I C E N S E # 0 1 2 1 9 1 2

500 SYLVAN AVENUE EAST PALO ALTO ∙ CALIFORNIA

PAGE 18RENT COMPARABLES MAP • 500 SYLVAN AVENUE • SAN BRUNO, CALIFORNIA

1

2

3

417-1158/17-10

PROPERTY

S 500 Sylvan Avenue San Bruno, CA

1. 2212 Shelter Creek Lane San Bruno, CA

2. 2 Pacific Bay Circle San Bruno, CA

3. 1001 National Ave San Bruno, CA

4. 2002 Crystal Springs Road San Bruno, CA

PAGE 19RENT COMPARABLE SUMMARY • 500 SYLVAN AVENUE • SAN BRUNO, CALIFORNIA

17-1158/17-10

S C OT T K I L PAT R I C K | 6 5 0 . 8 6 8 . 0 7 3 8 | S K I L PAT R I C K @ A R A N E W M A R K .C O M | C A R E L I C E N S E # 0 1 2 1 9 1 2

PROPERTY UNITS TYPE SQ FT CURRENT RENT $/SQ FT COMMENTS

S 500 Sylvan Avenue San Bruno, CA

1

2

6

Studio

1+1

2+2

403

935

1000

$2,195

$2,800

$3,500

$5.45

$2.99

$3.50

Proposed project

1. 2212 Shelter Creek Lane San Bruno, CA 1 2+2 1000 $3,095.0 $3.10

Large unit in newer complex, included 2 parking stalls, extra storage, 3 pools, new gym, large complex

2. 2 Pacific Bay Circle San Bruno, CA1

1

1+1

2+2

611

942

$2,559.0

$3,322.0

$4.19

$3.53

Large building with pool, gym, updated interiors pets OK, laundry in unit

3. 1001 National Avenue San Bruno, CA1

1

1+1

2+2

635

939

$2,700.0

$3,392.0

$4.25

$3.61

Large professional building, pets ok, in unit W/D, pool, gym

4. 2002 Crystal Springs Road San Bruno, CA 1 Studio 425 $2,055.0 $4.84Large building with updated units. W/D in unit, pool, guys, business center